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04/16/2018Monday, April 16, 2018 1:00 PM City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Council Chambers Pension Trustees Meeting Agenda April 16, 2018Pension Trustees Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the March 12, 2018 Pension Trustees Meeting as submitted in written summation by the City Clerk. 3. Citizens to be Heard Regarding Items Not on the Agenda 4. New Business Items 4.1 Approve the new hires for acceptance into the Pension Plan as listed. 4.2 Approve the following request of employees Christopher Defayette, Police Department and Jeffery Richardson, Police Department, to vest their pensions as provided by Section 2.419 of the Employees’ Pension Plan. 4.3 Approve the following request of employees Kevin Cobb, Solid Waste General Services Department, Terrance Labelle, Public Utilities, Roger Larkin, Engineering and Kathleen McMullen, Information Technology Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. 4.4 Accept the January 1, 2018 Annual Actuarial Valuation for the Employees’ Pension Plan. 4.5 Annual review of the Employees’ Pension Plan investment performance for the calendar and plan year ended December 31, 2017. 4.6 Determine Trustees’ expected rate of return for pension plan investments for current year, each of the next several years, and for the long term thereafter, in accordance with FL Statutes 112.661(9). 5. Director's Report 6. Adjourn Page 2 City of Clearwater Printed on 4/11/2018 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4359 Agenda Date: 4/16/2018 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Pension Trustees Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the March 12, 2018 Pension Trustees Meeting as submitted in written summation by the City Clerk. SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 4/11/2018 Pension Trustees Meeting Minutes March 12, 2018 Page 1 City of Clearwater City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Meeting Minutes Monday, March 12, 2018 1:00 PM Council Chambers Pension Trustees Draft Pension Trustees Meeting Minutes March 12, 2018 Page 2 City of Clearwater Rollcall Present 5 - Chair George N. Cretekos, Trustee Doreen Caudell, Trustee Bob Cundiff, Trustee Hoyt Hamilton, and Trustee Bill Jonson Also Presen t – W illiam B. Ho rne – City Manager, Jill Silverboard – Deputy City Manager, Micah Maxwell – Assistant City Manager, Pamela K. Akin – City Attorney, Rosem ar ie Call – City Clerk, Nicole Spra gue – Offic ial Re cords and Le gis lati ve Ser vice s Coo rd in ator, and Joe Roseto – Human Resources Director To pro vi de continui ty fo r research, items are li sted in agend a order altho ugh not necessarily disc ussed in that order. Unapproved 1. Call to Order – Chair Cretekos The meeting was called to order at 1:20 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the February 12, 2018 Pension Trustees meeting as submitted in written summation by the City Clerk. Trustee Hamilton moved to approve the minutes of the February 12, 2018 Pension Trustees meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda – None. 4. New Business Items 4.1 Approve the new hires for acceptance into the Pension Plan as listed. Name/Job Classification/Department Pension Eligibility Date Shaun Plaskiewicz, Electro Mechanical Technician, Public Utilities 1/8/2018 John Harrell, Utilities Mechanic, Public Utilities 1/8/2018 Wioletta Dabrowski, Design & Mapping Technician, Engineering 1/8/2018 Amer Abuobeid, Business Analyst, Gas 1/8/2018 Draft Pension Trustees Meeting Minutes March 12, 2018 Page 3 City of Clearwater Jamie Lascko, Police Office Specialist, Police 1/8/2018 Gregory Richardson, Solid Waste Equipment Operator, Solid Waste 1/8/2018 Michael Webb, Solid Waste Equipment Operator, Solid Waste 1/8/2018 Randy Washam, Solid Waste Equipment Operator, Solid Waste 1/8/2018 Ethyl Parsons, Customer Service Representative, Customer Service 1/20/2018 Corey Dunn, Solid Waste Equipment Operator, Solid Waste 1/22/2018 Gregory Bowen, Senior Payroll Technician, Finance 1/22/2018 Randy Cohen, Fleet Mechanic, General Services 1/22/2018 David Scrivener, Recreation Supervisor II, Parks & Recreation 1/22/2018 Michelle Rucker, Police Service Technician, Police 1/22/2018 Kyle Bingham, Police Officer, Police 1/22/2018 Justin Buis, Police Officer, Police 1/22/2018 Joel Delatorre-Castellanos, Police Officer, Police 1/22/2018 Michael Diaz, Police Officer, Police 1/22/2018 Steven Warrior, Police Officer, Police 1/22/2018 Johan Waterman Ortiz, Police Officer, Police 1/22/2018 Eric Roberts, Electronics Technician, Public Utilities 1/22/2018 Trustee Jonson moved to approve the new hires for acceptance into the Pension Plan as listed. The motion was duly seconded and carried unanimously. 4.2 Approve the following request of employees Paul Capo, Fire Department and Zebulun Veale, Fire Department, to vest their pensions as provided by Section 2.419 of the Employees’ Pension Plan. Paul Capo, Fire Lieutenant, Fire Department, was employed by the City on October 16, 2000, and began participating in the Pension Plan on that date. Mr. Capo terminated from City employment on January 4, 2018. Zebulun Veale, Fire Lieutenant, Fire Department, was employed by the City on February 9, 2004, and began participating in the Pension Plan on that date. Mr. Veale terminated from City employment on February 28, 2015. The Employees’ Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status from full-time to part-time after completing ten or more years of creditable service (pension participation), such employee shall acquire a vested interest in the retirement benefits. Draft Pension Trustees Meeting Minutes March 12, 2018 Page 4 City of Clearwater Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non-hazardous duty employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the date on which the participant has completed twenty years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Mr. Capo will meet the hazardous duty criteria and begin collecting pension in November 2020. Mr. Veale will meet the hazardous duty criteria and begin collecting pension in March 2024. Trustee Caudell moved to approve the following request of employees Paul Capo, Fire Department and Zebulun Veale, Fire Department, to vest their pensions as provided by Section 2.419 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. 4.3 Approve the following request of employees Ruben Hernandez, Fire Department, Wilton Lee, Police Department, Robert Quinn, Fire Department and Deborah Weitzel, Fire Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. Ruben Hernandez, Firefighter/Driver-Operator, Fire Department, was employed by the City on November 2, 1992, and his pension service credit is effective on that date. His pension will be effective May 1, 2018. Based on an average salary of approximately $69,832.59 over the past five years, the formula for computing regular pensions and Mr. Hernandez’s selection of the 50% Joint and Survivor Annuity, this pension benefit will be approximately $50,267.76 annually. Wilton Lee, Police Sergeant, Police Department, was employed by the City on Draft Pension Trustees Meeting Minutes March 12, 2018 Page 5 City of Clearwater June 23, 1986, and his pension service credit is effective on that date. His pension will be effective February 1, 2018. Based on an average salary of approximately $96,240.87 over the past five years, the formula for computing regular pensions and Mr. Lee’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $81,172.92 annually. Robert Quinn, Fire Lieutenant, Fire Department, was employed by the City on July 29, 1991, and his pension service credit is effective on that date. His pension will be effective February 1, 2018. Based on an average salary of approximately $82,499.02 over the past five years, the formula for computing regular pensions and Mr. Quinn’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $59,050.68 annually. Deborah Weitzel, Storeskeeper, Fire Department, was employed by the City on December 22, 1997, and her pension service credit is effective on that date. Her pension will be effective February 1, 2018. Based on an average salary of approximately $40,002.76 over the past five years, the formula for computing regular pensions and Ms. Weitzel’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $19,444.20 annually. Section 2.416 provides for normal retirement eligibility for non-hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty-five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non-hazardous duty employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty-five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Ms. Weitzel has met the non-hazardous duty criteria. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the date on which the participant has completed twenty years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. Mr. Hernandez, Mr. Lee and Mr. Quinn have met the hazardous duty criteria. Trustee Cundiff moved to approve the following request of employees Ruben Hernandez, Fire Department, Wilton Lee, Police Department, Robert Quinn, Fire Department and Deborah Weitzel, Fire Department, for a regular pension as provided by Sections Draft Pension Trustees Meeting Minutes March 12, 2018 Page 6 City of Clearwater 2.416 and 2.424 of the Employees’ Pension Plan. The motion was duly seconded and carried unanimously. 5. Director's Report – None. 6. Adjourn The meeting adjourned at 1:21 p.m. Chair Employees’ Pension Plan Trustees Attest City Clerk Draft BLANK INTENTIONALLY Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4366 Agenda Date: 4/16/2018 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Approve the new hires for acceptance into the Pension Plan as listed. SUMMARY: Name/Job Classification/Department Pension Eligibility Date Gregory Jones, Parking, Facility & Security Aide, Marine & Aviation 2/03/2018 Travontae Butler, Solid Waste Worker, Solid Waste 2/05/2018 Matthew Henderson, Solid Waste Worker, Solid Waste 2/05/2018 Gordon Dixon, Solid Waste Equipment Operator, Solid Waste 2/05/2018 Derek Williams, Solid Waste Equipment Operator, Solid Waste 2/05/2018 Jennifer Bowne, Librarian II, Library 2/05/2018 Jennifer Jones, Librarian I, Library 2/05/2018 Jewel Smith, Recreation Specialist, Parks & Recreation 2/05/2018 Carrie Szurly, Human Resources Office Assistant, Human Resources 2/05/2018 Rachel Fox, Accounting Technician, Parks & Recreation 2/05/2018 Marci Colton, Police Information Technician I, Police 2/05/2018 Zeron Rance, Utilities Mechanic, Public Utilities 2/05/2018 Kelly Calhoun, Telecommunications Analyst, Information Technology 2/05/2018 Michael Hegenbarth, Parking Technician, Engineering 2/17/2018 Alexandra Eustis, Pool Guard, Parks & Recreation 2/17/2018 Michele LaBrie, Marine Facility Operator, Marine & Aviation 2/18/2018 Tre Bunch, Solid Waste Worker, Solid Waste 2/19/2018 Andrew Crews, Construction Inspector II, Engineering 2/20/2018 Modesto Gonzalez, Traffic Engineering Assistant, Engineering 2/20/2018 Ursula Landsman, Accounting Technician, Library 2/20/2018 Daniel Smith, Utilities Mechanic, Public Utilities 2/20/2018 Page 1 City of Clearwater Printed on 4/11/2018 Interoffice Correspondence Sheet TO: Pension Advisory Committee FROM: Joseph Roseto, Human Resources Director SUBJECT: Recommendation for Acceptance into Pension Plan DATE: Subject/Recommendation: Recommend approval of the new hires for acceptance into the Pension Plan as listed. Name Job Classification Department Pension Eligibility Date Gregory Jones Parking, Facility & Security aide Marine & Aviation 2/03/2018 Travontae Butler Solid Waste Worker Solid Waste 2/05/2018 Matthew Henderson Solid Waste Worker Solid Waste 2/05/2018 Gordon Dixon Solid Waste Equipment Operator Solid Waste 2/05/2018 Derek Williams Solid Waste Equipment Operator Solid Waste 2/05/2018 Jennifer Bowne Librarian II Library 2/05/2018 Jennifer Jones Librarian I Library 2/05/2018 Jewel Smith Recreation Specialist Parks & Recreation 2/05/2018 Carrie Szurly Human Resources Office Assistant Human Resources 2/05/2018 Rachel Fox Accounting Technician Parks & Recreation 2/05/2018 Marci Colton Police Information Technician I Police 2/05/2018 Zeron Rance Utilities Mechanic Public Utilities 2/05/2018 Kelly Calhoun Telecommunications Analyst Information Technology 2/05/2018 Michael Hegenbarth Parking Technician Engineering 2/17/2018 Alexandra Eustis Pool Guard Parks & Recreation 2/17/2018 Michele LaBrie Marine Facility Operator Marine & Aviation 2/18/2018 Tre Bunch Solid Waste Worker Solid Waste 2/19/2018 Andrew Crews Construction Inspector II Engineering 2/20/2018 Modesto Gonzalez Traffic Engineering Assistant Engineering 2/20/2018 Ursula Landsman Accounting Technician Library 2/20/2018 Daniel Smith Utilities Mechanic Public Utilities 2/20/2018 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4367 Agenda Date: 4/16/2018 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Approve the following request of employees Christopher Defayette, Police Department and Jeffery Richardson, Police Department, to vest their pensions as provided by Section 2.419 of the Employees’ Pension Plan. SUMMARY: Christopher Defayette, Police Officer, Police Department, was employed by the City on January 9, 2006, and began participating in the Pension Plan on that date. Mr. Defayette terminated from city employment on February 3, 2018. Jeffery Richardson, Police Officer, Police Department, was employed by the City on December 16, 2002, and began participating in the Pension Plan on that date. Mr. Richardson terminated from city employment on February 3, 2018. The Employees’ Pension Plan provides that should an employee cease to be an employee of the City of Clearwater or change status from full -time to part-time after completing ten or more years of creditable service (pension participation ), such employee shall acquire a vested interest in the retirement benefits. Vested pension payments commence on the first of the month following the month in which the employee normally would have been eligible for retirement. Section 2.416 provides for normal retirement eligibility for non -hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty -five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non -hazardous duty employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty -five years of credited service; or the date on which a participant has reached the age of sixty-five years and completed ten years of credited service. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the date on which the participant has completed twenty years of credited service regardless of age, or the date on which the participant has reached fifty -five years and completed ten years of credited service. Mr. Defayette will meet the hazardous duty criteria and begin collecting pension in February 2026. Mr. Richardson will meet the hazardous duty criteria and begin collecting pension in January 2023. APPROPRIATION CODE AND AMOUNT: N/A Page 1 City of Clearwater Printed on 4/11/2018 File Number: ID#18-4367 USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 4/11/2018 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4368 Agenda Date: 4/16/2018 Status: Agenda ReadyVersion: 2 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Approve the following request of employees Kevin Cobb, Solid Waste General Services Department, Terrance Labelle, Public Utilities, Roger Larkin, Engineering and Kathleen McMullen, Information Technology Department, for a regular pension as provided by Sections 2.416 and 2.424 of the Employees’ Pension Plan. SUMMARY: Kevin Cobb, Fleet Mechanic, Solid Waste General Services Department, was employed by the City on May 28, 1996, and his pension service credit is effective on that date. His pension will be effective June 1, 2018. Based on an average salary of approximately $59,797.69 over the past five years, the formula for computing regular pensions and Mr. Cobb’s selection of the Life Annuity, this pension benefit will be approximately $36,191.28 annually. Terrance Labelle, Public Utilities Coordinator, Public Utilities Department, was employed by the City on December 1, 1996, and his pension service credit is effective on July 21, 1998. His pension will be effective March 1, 2018. Based on an average salary of approximately $68,628.45 over the past five years, the formula for computing regular pensions and Mr . Labelle’s selection of the 100% Joint and Survivor Annuity, this pension benefit will be approximately $31,245.96 annually. Roger Larkin, Construction Inspector II, Engineering Department, was employed by the City on May 27, 1997, and his pension service credit is effective on that date. His pension will be effective March 1, 2018. Based on an average salary of approximately $40,479.19 over the past five years, the formula for computing regular pensions and Mr. Larkin’s selection of the Life Annuity, this pension benefit will be approximately $23,089.20 annually. Kathleen McMullen, Senior Telecommunications Analyst, Information Technology Department, was employed by the City on November 10, 1997, and her pension service credit is effective on that date. Her pension will be effective March 1, 2018. Based on an average salary of approximately $63,783.76 over the past five years, the formula for computing regular pensions and Ms. McMullen’s selection of the Life Annuity, this pension benefit will be approximately $35,621.88 annually. Section 2.416 provides for normal retirement eligibility for non -hazardous duty employees hired prior to the effective date of this reinstatement (January 1, 2013), a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of fifty-five years and completed twenty years of credited service; the date on which a participant has reached age sixty -five years and completed ten years of credited service; or the date on which a member has completed thirty years of service regardless of age. For non -hazardous Page 1 City of Clearwater Printed on 4/11/2018 File Number: ID#18-4368 duty employees hired on or after the effective date of this restatement, a member shall be eligible for retirement following the earlier of the date on which a participant has reached the age of sixty years and completed twenty -five years of credited service; or the date on which a participant has reached the age of sixty -five years and completed ten years of credited service . Mr. Cobb, Mr. Labelle, Mr. Larkin and Ms. McMullen have met the non-hazardous duty criteria. Section 2.416 provides for normal retirement eligibility for hazardous duty employees, a member shall be eligible for retirement following the earlier of the date on which the participant has completed twenty years of credited service regardless of age, or the date on which the participant has reached fifty-five years and completed ten years of credited service. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 2 City of Clearwater Printed on 4/11/2018 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4479 Agenda Date: 4/16/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.4 SUBJECT/RECOMMENDATION: Accept the January 1, 2018 Annual Actuarial Valuation for the Employees’ Pension Plan. SUMMARY: Per the actuary report dated January 1, 2018, a minimum city employer contribution of $8.80 million, or 10.69% of covered payroll, is required for fiscal year 2019. This is an increase of approximately $150,000 over the fiscal 2018 required contribution of $8.65 million, or 10.91% of covered payroll. The calendar year 2017 investment return was a gain of 16.01%, net of investment fees, versus the assumed rate of 7.0%. The five-year smoothed investment return based on the actuarial value of the assets was 8.89% versus the assumed rate of 7.0%. Calendar 2013 through 2017 investment returns were 16.90%, 7.99%, (0.28%), 6.70%, and 16.01%, respectively. The plan experienced a net actuarial experience gain of $11.1 million for the year. The gain is primarily due to the actuarial gain from the actuarial investment return of 8.89% versus the assumption of 7.0%. The Plan's funded ratio at January 1, 2018 was 106.96% (including the credit balance) versus 105.38% for the prior year. The actuarial value of assets exceeds the market value of assets by $39.0 million as of January 1, 2018. The plan's credit balance, which reflects actual contributions in excess of actuarially required contributions for prior years, increased from $19.4 million to $22.8 million during calendar 2017. This $3.4 million increase was due to the City ’s budgeted overfunding of the fiscal 2018 required contribution. The City contributed 13% of covered salaries, versus the actuarially required 10.91%, to increase the plan ’s credit balance reserves in anticipation of future volatility in required contributions. The Employees’ Pension Plan is highly leveraged on investment returns in comparison to most pension plans, which means changes in investment earnings cause significant increases or decreases in required employer contributions. This year -to-year volatility necessitates building reserves, such as the plan ’s credit balance, during periods of positive investment earnings experience. This provides the City the ability to subsidize increased employer contributions Page 1 City of Clearwater Printed on 4/11/2018 File Number: ID#18-4479 during periods of negative investment earnings experience with contributions from accumulated reserves. APPROPRIATION CODE AND AMOUNT: N/A Page 2 City of Clearwater Printed on 4/11/2018                                                                             City of Clearwater Employees’  Pension Plan   Actuarial Valuation Report as of January 1, 2018  Annual Employer Contribution for the Fiscal Year  Ending September 30, 2019            March 28, 2018      Board of Trustees  City of Clearwater Employees’ Pension Plan  Clearwater, Florida                       Dear Board Members:    The results of the January 1, 2018 Annual Actuarial Valuation of the City of Clearwater Employees’  Pension Plan are presented in this report.      The computed contribution rate shown on page 1 may be considered as a minimum contribution rate  that complies with the Board’s funding policy.  Users of this report should be aware that contributions  made at that rate do not guarantee benefit security.  Given the importance of benefit security to any  retirement system, we suggest that contributions to the System in excess of those presented in this  report be considered.    The contribution rate in this report is determined using the actuarial assumptions and methods  disclosed in Section B of this report.  This report does not include an assessment of the risks of future  experience not meeting the actuarial assumptions.  Such an assessment of risks was outside the scope  of this assignment.  We encourage a review and assessment of investment and other significant risks  that may have a material effect on the Plan’s financial condition.    This report was prepared at the request of the Board and is intended for use by the Retirement System  and those designated or approved by the Board.  This report may be provided to parties other than the  System only in its entirety and only with the permission of the Board.  GRS is not responsible for  unauthorized use of this report.    The purposes of the valuation are to measure the System’s funding progress and to determine the  employer contribution rate for the fiscal year ending September 30, 2019.  This report should not be  relied on for any purpose other than the purposes described herein.  Determinations of financial  results, associated with the benefits described in this report, for purposes other than those identified  above may be significantly different.    The findings in this report are based on data or other information through December 31, 2017.  Future  actuarial measurements may differ significantly from the current measurements presented in this  report due to such factors as the following: plan experience differing from that anticipated by the  economic or demographic assumptions; changes in economic or demographic assumptions; increases  or decreases expected as part of the natural operation of the methodology used for these  measurements (such as the end of an amortization period or additional cost or contribution  requirements based on the plan’s funded status); and changes in plan provisions or applicable law.         Board of Trustees  March 28, 2018  Page ii The scope of an actuarial valuation does not include an analysis of the potential range of such  measurements.    This valuation assumed the continuing ability of the plan sponsor to make the contributions necessary  to fund this Plan. A determination regarding whether or not the plan sponsor is actually able to do so is  outside our scope of expertise and was not performed.    The valuation was based upon information furnished by the City concerning Retirement System  benefits, financial transactions, plan provisions and active members, terminated members, retirees  and beneficiaries.  We checked for internal and year‐to‐year consistency, but did not audit the data.   We are not responsible for the accuracy or completeness of the information provided by the City.      In addition, this report was prepared using certain assumptions approved by the Board and prescribed  by the Florida Statutes as described in the section of this report entitled Actuarial Assumptions and  Methods.  The prescribed assumptions are the assumed mortality rates detailed in the Actuarial  Assumptions and Methods section in accordance with Florida Statutes, Chapter 112.63.    This report has been prepared by actuaries who have substantial experience valuing public employee  retirement systems.  To the best of our knowledge the information contained in this report is accurate  and fairly presents the actuarial position of the Retirement System as of the valuation date.  All  calculations have been made in conformity with generally accepted actuarial principles and practices,  with the Actuarial Standards of Practice issued by the Actuarial Standards Board and with applicable  statutes.    Peter N. Strong and Trisha Amrose are members of the American Academy of Actuaries.  These  actuaries meet the Academy’s Qualification Standards to render the actuarial opinions contained  herein.      The signing actuaries are independent of the plan sponsor.    This actuarial valuation and/or cost determination was prepared and completed by us or under our direct  supervision, and we acknowledge responsibility for the results.  To the best of our knowledge, the results  are complete and accurate.  In our opinion, the techniques and assumptions used are reasonable, meet  the requirements and intent of Part VII, Chapter 112, Florida Statutes, and are based on generally  accepted actuarial principles and practices.  There is no benefit or expense to be provided by the plan  and/or paid from the plan’s assets for which liabilities or current costs have not been established or  otherwise taken into account in the valuation.  All known events or trends which may require a material  increase in plan costs or required contribution rates have been taken into account in the valuation.           Board of Trustees  March 28, 2018  Page iii Gabriel, Roeder, Smith & Company will be pleased to review this valuation and Report with the Board of  Trustees and to answer any questions pertaining to the valuation.    Respectfully submitted,    GABRIEL, ROEDER, SMITH AND COMPANY                                                                                                                                                          Peter N. Strong, FSA, MAAA    Trisha Amrose, MAAA   Enrolled Actuary No. 17‐6975                         Enrolled Actuary No. 17‐8010                 City of Clearwater Employees’ Pension Plan   GRS Retirement Consulting      TABLE OF CONTENTS      Section Title Page       A  Discussion of Valuation Results   1       B  Valuation Results         1. Participant Data   4    2. Actuarially Determined Contribution (ADC)   5    3. Actuarial Value of Benefits and Assets   6    4. Calculation of Employer Normal Cost   7    5. Reconciliation of Credit Balance   8    6. Liquidation of the Unfunded Actuarial        Accrued Liability   9    7. Actuarial Gains and Losses 11    8. Recent History of Valuation Results 16    9. Recent History of Contributions 17    10. Actuarial Assumptions and Cost Method 18    11. Glossary of Terms 29       C  Pension Fund Information      1. Statement of Plan Assets at Market Value 32    2. Reconciliation of Plan Assets 33    3. Development of Actuarial Value of Assets 34    4. Investment Rate of Return 35       D  Financial Accounting Information      1. FASB No. 35 36       E  Miscellaneous Information      1. Reconciliation of Membership Data 37    2. Active Participant Distribution 38    3. Inactive Participant Distribution 41       F  Summary of Plan Provisions 42          SECTION A  DISCUSSION OF VALUATION RESULTS                          City of Clearwater Employees’ Pension Plan 1 GRS Retirement Consulting   DISCUSSION OF VALUATION RESULTS    Comparison of Required Employer Contributions     The required employer contribution developed in this year's valuation is compared below to  last year's results:    Required Employer/State Contribution $ 8,813,297 $ 8,659,427 $ 153,870 As % of Covered Payroll 10.71 % 10.92 % (0.21) % Estimated State Contribution 12,000 12,000 0 As % of Covered Payroll 0.02 % 0.01 % 0.01 % Required Employer Contribution 8,801,297 8,647,427 153,870 As % of Covered Payroll 10.69 % 10.91 % (0.22) % Credit Balance 22,819,909 19,445,883 3,374,026 1/1/2018 Valuation (Decrease) Increase Valuation 1/1/2017 For FYE  9/30/2019 For FYE  9/30/2018 Based onBased on      The contribution has been adjusted for interest on the basis that payments are made  uniformly during the first two quarters of the City’s fiscal year.  The required employer contribution  has been computed under the assumption that the amount to be received from the State on behalf of  police officers and firefighters in 2018 and 2019 will be $12,000.  If the actual payment from the State  falls below this amount, then the City must increase its contribution by the difference.       The actual Employer and State contributions during the year ending December 31, 2017 were  $10,660,241 and $12,000, respectively, for a total of $10,672,241, compared to the required  contribution of $8,659,427.  The excess contribution of $2,012,814 was used to increase the credit  balance.       The minimum required City contribution is 7% of covered payroll.    Revisions in Benefits     There have been no revisions in benefits since the last valuation.         City of Clearwater Employees’ Pension Plan 2 GRS Retirement Consulting     Revisions in Actuarial Assumptions or Methods     There have been no revisions in actuarial assumptions or methods since the last valuation.   For informational purposes, if this year’s valuation had been completed using the mortality rates  assumed prior to January 1, 2016 (the RP‐2000 Combined Healthy Participant Mortality Table for  males and females with mortality improvements projected with Scale BB) rather than the mortality  rates mandated by the Florida Statutes, the required City contribution for FY 2019 would have been  $9,046,197, or 10.99% of covered payroll, and the funded ratio (excluding the credit balance) as of  January 1, 2018 would have been 104.06%.    Actuarial Experience     There was a net actuarial experience gain of $11,075,148 during the year, which means that  actual experience was more favorable than expected. The gain is primarily due to a recognized  investment return (on the smoothed actuarial value of assets) above the assumed rate of 7.0%.  The  investment return on the market value of assets was 16.01%, and the investment return was 8.89%  based on the actuarial value of assets.  The investment gains were partially offset by liability‐related  experience losses.  There were demographic experience gains resulting from fewer service  retirements and more employment terminations than expected, but these gains were more than  offset by experience losses due to higher than expected salary increases.  Actual salary increases from  2016 to 2017 were 7.35%, on average, compared to an expected average increase of 4.16%.  Actual  mortality experience was also a source of experience loss, as there were fewer retiree deaths  during the year than expected.     Under Chapter 112.66 of the Florida Statues, the annual payment to amortize the UAL may  not reduce the contribution required to fund the Normal Cost.  As a result, since the annual  payment to amortize the UAL is below $0, the actuarial experience gain had no direct effect on the  required employer contribution.    Analysis of Change in Employer Contribution     The components of change in the required City contribution are as follows:    Contribution Rate Last Year 10.91 % Change in Benefits 0.00 Change in Assumptions and Methods 0.00 Amortization Payment on UAAL 0.00 Normal Cost (0.19) Experience Gain/Loss 0.00 Change in Administrative  Expenses (0.02) Change in State Revenue (0.01) Contribution Rate This Year 10.69     City of Clearwater Employees’ Pension Plan 3 GRS Retirement Consulting   Funded Ratio     One measure of the Plan’s funding progress is the ratio of the actuarial value of assets to the  actuarial accrued liability.  Including the credit balance in the actuarial value of assets, the funded  ratio is 106.96% this year compared to 105.38% last year.  Not including the credit balance in the  actuarial value of assets, the funded ratio is 104.47% this year compared to 103.17% last year.      Variability of Future Contribution Rates    The Actuarial Cost Method used to determine the contribution rate is intended to produce  contribution rates which are generally level as a percent of payroll.  Even so, when experience  differs from the assumptions, as it often does, the employer’s contribution rate can vary  significantly from year‐to‐year.      The Market Value of Assets exceeds the Actuarial Value of Assets by $38,975,741 as of the  valuation date (see Section C).  This difference will be phased in over the next few years in the  absence of offsetting losses.  If there are no experience losses and the return on the market value of  assets is 7.0% in 2018 (net of investment expenses) as assumed, it is projected that the City  contribution requirement as of January 1, 2019 for the fiscal year ending September 30, 2020 will  remain in the range of approximately 10%‐11% of covered payroll.    Relationship to Market Value    If Market Value had been the basis for the valuation, the City contribution rate would have  remained at 10.69% of covered payroll (since the annual payment to amortize the UAL would have  remained at $0 due to Chapter 112.66 of the Florida Statutes), and the funded ratio (excluding the  credit balance) would have been 108.73%.  The funded ratio based on the market value of assets  (excluding the credit balance) last year was 100.62%.    Measures of Plan Maturity/Risk Exposure    The following are measures of the Plan’s maturity and risk exposure:    1/1/2018 1/1/2017 Ratio of the Market Value of Assets to Total Payroll 12.38 11.42 Ratio of retired to  active life liability 2.08 1.97 Net cash flow as a percentage  of the Market Value of Assets (2.82) % (2.86) %    The higher the above benchmarks are, the more mature the Plan is, and the more risk  exposure the Plan has (to asset fluctuations and longevity risk).    Conclusion     The remainder of this Report includes detailed actuarial valuation results, financial  information, miscellaneous information and statistics, and a summary of plan provisions.    SECTION B  VALUATION RESULTS                          City of Clearwater Employees’ Pension Plan 4 GRS Retirement Consulting     ACTIVE MEMBERS Number 1,523 1,520 Covered Annual Payroll $ 82,317,307 $ 79,276,100 Average Annual Payroll $ 54,049 $ 52,155 Average Age 44.0 44.3 Average Past Service 10.6 10.9 Average Age at Hire 33.4 33.4 RETIREES & BENEFICIARIES Number 1,123 1,078 Annual  Benefits $ 42,029,629 $ 39,298,148 Average Annual Benefit $ 37,426 $ 36,455 Average Age 66.7 66.3 DISABILITY  RETIREES Number 136 134 Annual  Benefits $ 4,040,807 $ 3,889,865 Average Annual Benefit $ 29,712 $ 29,029 Average Age 63.9 63.2 TERMINATED VESTED MEMBERS Number 75 66 Annual  Benefits $ 1,407,716 $ 1,254,568 Average Annual Benefit $ 18,770 $ 19,009 Average Age 49.4 50.1 PARTICIPANT DATA January 1, 2018 January  1, 2017               City of Clearwater Employees’ Pension Plan 5 GRS Retirement Consulting     A. Valuation Date B. ADC to Be Paid During Fiscal Year Ending 9/30/2019 9/30/2018   C. Assumed Date of Employer Contrib. Evenly during Evenly during first two quarters first two quarters of fiscal year of  fiscal year D. Annual Payment to Amortize Unfunded Actuarial Liability $ 0 * $ 0 * E. Employer Normal Cost 8,236,726 8,092,922 F. ADC  if  Paid on the Valuation Date:  D+E 8,236,726 8,092,922 G. ADC  Adjusted for Frequency of  Payments 8,813,297 8,659,427 H. ADC  as % of Covered Payroll 10.71 % 10.92 % I. Assumed Rate of Increase in Covered Payroll to Contribution Year 0.00 % 0.00 % J. Covered Payroll for Contribution Year 82,317,307 79,276,100 K. ADC  for Contribution Year: H x J 8,813,297 8,659,427 L. Estimate of State Revenue in  Contribution Year 12,000 12,000 M. Required Employer Contribution (REC) in Contribution Year 8,801,297 8,647,427 N. REC as % of Covered Payroll in Contribution Year: M ÷ J 10.69 % 10.91 % O. Credit Balance 22,819,909 19,445,883 ACTUARIALLY DETERMINED CONTRIBUTION (ADC) January 1, 2018 January 1, 2017     * The annual payment to amortize the UAL is less than $0; however, under Chapter 112.66 of the Florida  Statutes, the annual payment to amortize the UAL may not reduce the contribution below the amount  required to fund the Normal Cost.    City of Clearwater Employees’ Pension Plan 6 GRS Retirement Consulting A. Valuation Date B. Actuarial Present Value of All Projected Benefits for    1. Active Members a. Service Retirement Benefits $   349,500,746 $   344,686,807 b. Vesting Benefits 34,245,751         34,490,262          c. Disability Benefits 14,192,268         13,745,145          d. Preretirement Death Benefits 5,977,601            5,984,099             e. Return of Member Contributions 3,004,156            2,778,269             f. Total 406,920,522       401,684,582        2. Inactive Members a. Service Retirees & Beneficiaries 556,713,663       524,368,640        b. Disability Retirees 51,685,695         50,425,996          c. Terminated Vested Members 14,735,991         14,083,542          d. Total 623,135,349       588,878,178        3. Total for All Members 1,030,055,871 990,562,760 C. Actuarial Accrued (Past  Service) Liability 916,334,666       880,316,652        D. Actuarial Value of Accumulated Plan    Benefits per FASB No. 35 866,723,368 835,933,687 E. Plan Assets    1. Market Value 1,019,110,192 905,261,405 2. Actuarial Value 980,134,451 927,675,129  3. Actuarial Value Excluding Credit Balance 957,314,542 908,229,246 F. Actuarial Present Value of Projected Covered Payroll 628,628,623 601,882,706 G. Actuarial Present Value of Projected    Member Contributions 55,880,281 53,377,255 H. Accumulated Value of Active Member Contributions 60,969,115         60,655,020          I. Unfunded Actuarial Accrued Liability (UAAL) Based on EAN Method = C. ‐ E.3. (40,979,876)        (27,912,594)         J. Funded Ratio = E.2. / C. 106.96% 105.38% K. Funded Ratio Excluding Credit Balance = E.3. / C. 104.47% 103.17% ACTUARIAL VALUE OF BENEFITS  AND ASSETS January 1, 2018 January 1, 2017       City of Clearwater Employees’ Pension Plan 7 GRS Retirement Consulting     A. Valuation Date B. Normal Cost for 1. Service Retirement Benefits $ 10,742,727 $ 10,431,629 2. Vesting 2,058,733 2,024,528 3. Disability Benefits 1,410,003 1,335,018 4. Death Benefits 253,393 248,588 5. Refund of Contributions 714,178 695,405 6. Total for Future Benefits 15,179,034 14,735,168   7. Assumed Amount for    Administrative Expenses 294,925 301,781 8. Total Normal Cost 15,473,959 15,036,949 C. Expected Member Contributions 7,237,233 6,944,027 D. Employer Normal Cost:  B8 ‐ C 8,236,726 8,092,922 E. Employer Normal Cost as % of     Covered Payroll 10.01% 10.21% CALCULATION OF EMPLOYER NORMAL COST ENTRY AGE NORMAL METHOD January 1, 2018 January 1, 2017        City of Clearwater Employees’ Pension Plan 8 GRS Retirement Consulting     $ 19,445,883 ‐8,647,427 + 10,660,241 + 1,361,212 22,819,909 Interest on Credit Balance Credit Balance  at End  of Year Credit Balance  at Beginning of Year Required Employer Contribution Employer Contribution Made Reconcilation of Credit Balance     City of Clearwater Employees’ Pension Plan 9 GRS Retirement Consulting     LIQUIDATION OF THE   UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL)      UAAL  Amortization Period  and Payments Date Established Source Amount Years Remaining Amount Payment 1/1/2015 Fresh Start (5,212,649)$     20 (6,463,582)$          (570,202)$               1/1/2016 (Gain)/Loss 475,313            13 547,648                 61,240                     1/1/2016 Assumption Change (4,280,409)       23 (4,924,867)            (408,322)                  1/1/2017 (Gain)/Loss (18,096,188)     14 (19,389,495)          (2,072,047)              1/1/2017 Assumption Change 303,943            24 325,568                 26,529                     1/1/2018 (Gain)/Loss (11,075,148)     15 (11,075,148)          (1,136,441)              (37,885,138)     (40,979,876)          (4,099,243)              Original UAAL Current  UAAL          City of Clearwater Employees’ Pension Plan 10 GRS Retirement Consulting     Amortization Schedule     The UAAL is being liquidated as a level dollar amount over the number of years remaining in the  amortization period.  The expected amortization schedule is as follows:     2018 $ (40,979,876)         2019 (39,462,272)         2020 (37,838,442)         2021 (36,100,942)         2022 (34,241,818)         2023 (32,252,556)         2028 (20,012,044)         2033 (4,925,542)           2038 (1,050,426)           2042 ‐                             Amortization  Schedule Year Expected UAAL       City of Clearwater Employees’ Pension Plan 11 GRS Retirement Consulting       ACTUARIAL GAINS AND LOSSES     The assumptions used to anticipate mortality, employment turnover, investment income,  expenses, salary increases, and other factors have been based on long range trends and expectations.   Actual experience can vary from these expectations.  The variance is measured by the gain and loss for  the period involved.  If significant long term experience reveals consistent deviation from what has  been expected and that deviation is expected to continue, the assumptions should be modified.  The  net actuarial gain (loss) for the past year is computed as follows:      1. Last Year's UAAL $ (27,912,594) 2. Employer Normal Cost  for Contribution Year 8,092,922 3. Last Year's Contributions 8,659,427 * 4. Interest at the Assumed Rate on:  a. 1 and 2 for  one  year (1,387,377)  b. 3 from dates paid 38,252 c. a ‐ b (1,425,629) 5. This Year's Expected UAAL: 1 + 2 ‐ 3 + 4c (29,904,728) 6. This Year's Actual UAAL (Before any changes in benefits and assumptions) (40,979,876) 7. Net Actuarial Gain (Loss): (5) ‐ (6) 11,075,148 8. Gain (Loss) Due to Investments 17,467,169 9. Gain (Loss) Due to other sources (6,392,021) A. Derivation of the  Current UAAL    * Excludes the portion of the actual contribution above the required contribution that was used to   increase the credit balance.       City of Clearwater Employees’ Pension Plan 12 GRS Retirement Consulting     Gains (losses) in previous years have been as follows:    Year Ending Gain 12/31 (Loss) 2009 $32,358,262 (4.89) % 2010 2,311,412 (0.37) 2011 (13,721,771) 2.28 2012 (7,015,253) 1.15 2013 62,452,347 (11.02) 2014 34,213,347 (6.01) 2015 (475,313) 0.07 ** 2016 18,096,188 (2.51) ** 2017 11,075,148 (1.48) ** Employer Cost Rate* Change in       * Before 2015, Change in Normal Cost Rate.  ** Before reflecting Chapter 112.66 of the Florida Statutes.  Since the annual payment to amortize the  UAL is less than $0, the net effect of the 2016 gain on the required employer contribution is $0 after  reflecting Chapter 112.66 of the Florida Statutes (the requirement to fund at least the normal cost).         City of Clearwater Employees’ Pension Plan 13 GRS Retirement Consulting    The fund earnings and salary increase assumptions have considerable impact on the cost of the  Plan so it is important that they are in line with the actual experience.  The following table shows the  actual fund earnings and salary increase rates compared to the assumed rates for the last few years:  12/31/1986 N/A 7.00 % 7.40 % 5.00 % 12/31/1987 N/A 7.00 5.90 5.00 12/31/1988 N/A 7.00 9.10 5.00 12/31/1989 N/A 7.00 8.70 5.00 12/31/1990 N/A 7.00 5.30 5.00 12/31/1991 N/A 7.00 6.10 5.00 12/31/1992 N/A 7.00 6.80 5.00 12/31/1993 7.42 % 7.00 1.20 5.00 12/31/1994 6.28 7.00 4.40 5.00 12/31/1995 9.14 7.00 6.40 5.00 12/31/1996 11.54 7.00 6.70 5.00 12/31/1997 13.74 7.00 5.60 5.00 12/31/1998 15.28 7.00 7.40 5.00 12/31/1999 17.96 7.00 4.20 5.00 12/31/2000 12.42 7.00 5.80 5.00 12/31/2001 7.40 7.00 5.90 5.00 12/31/2002 (1.85) 7.50 5.80 6.00 12/31/2003 7.45 7.50 6.40 6.00 12/31/2004 2.18 7.50 6.38 6.00 12/31/2005 4.58 7.50 5.49 6.00 12/31/2006 7.87 7.50 5.15 6.00 12/31/2007 10.68 7.50 6.62 6.00 12/31/2008 (10.61) 7.50 4.25 6.00 12/31/2009 16.53 7.50 3.29 6.00 12/31/2010 5.98 7.50 1.27 6.00 12/31/2011 4.46 7.50 2.56 6.00 12/31/2012 5.50 7.50 4.48 6.00 12/31/2013 14.04 7.00 3.16 4.07 12/31/2014 11.04 7.00 3.38 4.04 12/31/2015 7.64 7.00 8.65 * 4.09 12/31/2016 8.22 7.00 1.23 * 4.13 12/31/2017 8.89 7.00 7.35 4.16 Averages 7.98 %‐‐‐5.37 %‐‐‐ Assumed Salary Increases Actual Investment Return Year Ending Actual Assumed    * Salary for the year ending 12/31/2015 included 27 pay periods rather than 26.     The actual investment return rates shown above are based on the actuarial value of assets.  The  actual salary increase rates shown above are the increases received by those active members who were  included in the actuarial valuations both at the beginning and the end of each year.      City of Clearwater Employees’ Pension Plan 14 GRS Retirement Consulting   History of Investment Return Based on   Actuarial Value of Assets      ‐15% ‐10% ‐5% 0% 5% 10% 15% 20% 25% 30% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20% 25% 30% Plan Year End Actual Assumed       History of Salary Increases    0% 5% 10% 15% 0% 5% 10% 15% Plan  Year End Compared  to Previous  Year Actual Assumed           City of Clearwater Employees’ Pension Plan 15 GRS Retirement Consulting Active Members Year Vested Other End  of Ended A E A E A E A E A A A E Year 12/31/2009 49 110 54 57 0 6 0 2 10 46 56 93 1,567        12/31/2010 78 137 68 51 2 6 3 2 15 49 64 85 1,508        12/31/2011 84 124 43 49 6 6 0 2 11 64 75 84 1,468        12/31/2012 119 113 51 52 3 6 1 2 18 40 58 81 1,474        12/31/2013 102 98 27 42 2 3 4 2 11 54 65 79 1,478        12/31/2014 135 131 45 51 5 3 2 2 21 58 79 78 1,482        12/31/2015 145 122 43 52 7 3 1 2 18 53 71 82 1,505        12/31/2016 159 144 49 60 4 3 2 3 18 71 89 89 1,520        12/31/2017 164 161 47 59 2 3 2 2 25 85 110 91 1,523        12/31/2018 65 3 2 92 9 Yr Totals * 1035 1140 427 473 31 39 15 19 147 520 667 762 Terminations Year Retirement Retirement Death Totals During Service Disability Actual (A) Compared to Expected (E) Decrements Among Active Employees Number Added   Year Ended Number Number 12/31/2009 12 $ 142,606     16 $ 313,189      12/31/2010 12 139,508     18 363,242      12/31/2011 13 220,877     19 416,467      12/31/2012 12 232,755     20 466,010      12/31/2013 20 401,192     20 480,787      12/31/2014 16 275,728     21 510,892      12/31/2015 19 385,405     22 558,603      12/31/2016 20 498,746     25 708,907      12/31/2017 15 288,110     26 753,482      12/31/2018 28 831,241      Actual (A) Compared to Expected (E) Deaths Among Retirees and Beneficiaries Actual During  Year Annual  Pensions Annual  Pensions Expected During  Year      City of Clearwater Employees’ Pension Plan16 GRSRetirementConsulting    Active MembersInactive Members1/1/07 1,692 819 $ 79,385,090 $ 559,830,590N/A N/A N/A $ 9,192,407 11.58 %1/1/08 1,641 878 80,371,617 610,979,087N/A N/A N/A 6,920,400 8.611/1/09 1,628 903 82,104,837 536,834,473N/A N/A N/A 20,005,238 24.371/1/10 1,567 955 80,443,199 618,444,906$ 647,167,565$ 28,722,659 95.6% 15,879,628 19.741/1/11 1,508 1,024 76,505,599 646,956,800672,786,81225,830,012 96.2 15,461,725 20.211/1/12 1,468 1,072 74,765,020 664,087,199702,438,43238,351,233 94.5 17,064,100 22.821/1/13 1,474 1,127 74,422,344 688,731,221774,749,81186,018,590 88.9 12,845,501 17.261/1/14 1,478 1,144 74,254,159 772,411,068795,927,12723,516,059 97.0 4,626,039 6.231/1/15 1,482 1,194 75,078,542 829,486,793824,274,144(5,212,649) 100.6 8,194,115 10.911/1/16 1,505 1,237 80,250,993 866,598,975857,177,619(9,421,356) 101.1 8,358,975 10.421/1/17 1,520 1,278 79,276,100 908,229,246880,316,652(27,912,594) 103.2 8,092,922 10.211/1/18 1,523 1,334 82,317,307 957,314,542916,334,666(40,979,876) 104.5 8,236,726 10.01Unfunded Actuarial Liability(Entry Age)*RECENT HISTORY OF VALUATION RESULTSNumber ofEmployer Normal Cost*Valuation DateCovered Annual PayrollActuarial Value of Assets% of PayrollAmountActuarial Accrued Liability(Entry Age)FundedRatio  * Starting with the January 1, 2015 valuation, the Employer Normal Cost is calculated under the Entry Age Normal Method and  the Credit Balance is excluded from the Actuarial Value of Assets.    Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers.      City of Clearwater Employees’ Pension Plan17 GRSRetirementConsulting   1/1/07 9/30/08 $ 12,532,399 15.79 % $ 12,000 0.02 % $ 12,520,399 15.77 % $ 12,520,399 $ 12,000 $ 12,532,3991/1/08 9/30/09 10,086,978 12.55 12,000 0.01 10,074,978 12.54 10,074,978 12,000 10,086,9781/1/09 9/30/10 23,960,586 29.18 12,000 0.01 23,948,586 29.17 23,948,586 12,000 23,960,5861/1/10 9/30/11 19,373,992 24.08 12,000 0.01 19,361,992 24.07 19,361,992 12,000 19,373,9921/1/11 9/30/12 18,898,567 24.70 12,000 0.01 18,886,567 24.69 18,886,567 12,000 18,898,5671/1/12 9/30/13 20,925,720 27.99 12,000 0.02 20,913,720 27.97 20,913,720 12,000 20,925,7201/1/13 9/30/14 19,608,078 26.35 12,000 0.02 19,596,078 26.33 19,596,078 12,000 19,608,0781/1/14 9/30/15 10,803,098 14.55 12,000 0.02 10,791,098 14.53 10,791,098 12,000 10,803,0981/1/15 9/30/16 8,767,703 11.68 12,000 0.02 8,755,703 11.66 8,755,703 12,000 8,767,7031/1/16 9/30/17 8,944,103 11.15 12,000 0.02 8,932,103 11.13 8,932,103 12,000 8,944,1031/1/17 9/30/18 8,659,427 10.92 12,000 0.01 8,647,427 10.91 8,647,427 12,000 8,659,4271/1/18 9/30/19 8,813,297 10.71 12,000 0.02 8,801,297 10.69          ‐‐‐           ‐‐‐           ‐‐‐ % of Payroll Employer StateValuationDate End of Year To Which Valuation AppliesAmountActual Contributions% of PayrollTotalAmount % of PayrollAmountRECENT HISTORY OF REQUIRED AND ACTUAL CONTRIBUTIONSEstimated StateRequired ContributionsEmployer & State Net Employer  Results before January 1, 2010 are from the January 1, 2009 Report prepared by PricewaterhouseCoopers.       City of Clearwater Employees’ Pension Plan 18 GRS Retirement Consulting   ACTUARIAL ASSUMPTIONS AND COST METHOD    Valuation Methods    Actuarial Cost Method ‐ Normal cost and the allocation of benefit values between service rendered  before and after the valuation date were determined using an Individual Entry‐Age Actuarial Cost  Method having the following characteristics:    (i) the annual normal cost for each individual active member, payable from the date of  employment to the date of retirement, is sufficient to accumulate the value of the  member’s benefit at the time of retirement;    (ii) each annual normal cost is a constant percentage of the member’s year by year  projected covered pay.    Actuarial gains/(losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability.      Financing of Unfunded Actuarial Accrued Liabilities ‐ Unfunded Actuarial Accrued Liabilities (full  funding credit if assets exceed liabilities) were amortized by level (principal & interest combined)  dollar amount contributions over a reasonable period of future years.    Actuarial Value of Assets ‐ The Actuarial Value of Assets phase in the difference between the  expected and actual return on market value of assets at the rate of 20% per year.  The Actuarial  Value of Assets will be further adjusted to the extent necessary to fall within the corridor whose  lower limit is 80% of the Market Value of plan assets and whose upper limit is 120% of the Market  Value of plan assets. During periods when investment performance exceeds the assumed rate,  Actuarial Value of Assets will tend to be less than Market Value.  During periods when investment  performance is less than assumed rate, Actuarial Value of Assets will tend to be greater than  Market Value.    Valuation Assumptions    The actuarial assumptions used in the valuation are shown in this Section.  Both the economic and  decrement assumptions were established following the Experience Study Report as of January 1,  2012 covering the five years ending December 31, 2011.    Economic Assumptions    The investment return rate assumed in the valuations is 7.00% per year, compounded annually (net  rate after investment expenses).     The Wage Inflation Rate assumed in this valuation is 2.50% per year. The Wage Inflation Rate is  defined to be the portion of total pay increases for an individual that are due to macroeconomic forces  including productivity, price inflation, and labor market conditions. The wage inflation rate does not  include pay changes related to individual merit and seniority effects.    City of Clearwater Employees’ Pension Plan 19 GRS Retirement Consulting     The Price Inflation Rate assumed in this valuation is 2.50% per year. The Price Inflation Rate is  defined to be the expected long‐term rate of increases in the prices of goods and services.    The assumed real rate of return over inflation is defined to be the portion of total investment  return that is more than the assumed inflation rate.  Considering other economic assumptions, the  7.00% investment return rate translates to an assumed real rate of return over inflation of 4.50%.      The rate of salary increase used for individual members can be seen in the tables below. Part of the  assumption is for merit and/or seniority increases and productivity increases, and 2.50% recognizes  inflation, including price inflation and other macroeconomic forces. This assumption is used to  project a member’s current salary to the salaries upon which benefits will be based.      Years of  Service 1 2.50% 7.90% 2 2.50% 7.70% 3 2.50% 7.00% 4 2.50% 5.25% 5 ‐ 14 2.50% 4.25% 15 and Higher 2.50% 3.50%1.00% %  Increase in Salary ‐ Hazardous Duty 1.75% Merit and  Seniority Inflation Total Increase 5.40% 5.20% 4.50% 2.75%       Years of  Service 1 2.50% 7.90% 2 2.50% 5.75% 3 2.50% 5.00% 4 2.50% 4.50% 5 ‐ 9 2.50% 4.00% 10 and Higher 2.50% 3.50% 2.50% 2.00% 1.50% 1.00% %  Increase in  Salary ‐ Non‐Hazardous Duty Merit and  Seniority Inflation Total Increase 5.40% 3.25%            City of Clearwater Employees’ Pension Plan 20 GRS Retirement Consulting   Demographic Assumptions    The mortality table for Hazardous Duty members is the RP‐2000 Combined Healthy Participant  Mortality Table (for pre‐retirement mortality) and the RP‐2000 Mortality Table for Annuitants (for  post‐retirement mortality) with future improvements in mortality projected to all future years using  Scale BB. For females, the base mortality rates include a 100% white collar adjustment. For males,  the base mortality rates include a 90% blue collar adjustment and a 10% white collar adjustment.  These are the same rates used for Special Risk Class members of the Florida Retirement System  (FRS), as required under Florida Statutes, Chapter 112.63.      FRS Healthy Post‐Retirement Mortality for Special Risk Class Members    Sample Attained Ages (in 2018) Men Women Men Women 50 0.53 % 0.23 % 34.01 38.40 55 0.67 0.32 29.37 33.39 60 0.90 0.47 24.80 28.48 65 1.29 0.73 20.40 23.74 70 1.98 1.22 16.26 19.27 75 3.21 2.07 12.52 15.19 80 5.29 3.47 9.30 11.56 Probability of Future Life   Dying Next Year Expectancy (years)     This assumption is used to measure the probabilities of each benefit payment being made after  retirement.      FRS Healthy Pre‐Retirement Mortality for Special Risk Class Members    Sample Attained Ages (in 2018) Men Women Men Women 50 0.22 % 0.15 % 35.00 38.75 55 0.39 0.24 29.88 33.61 60 0.71 0.39 25.00 28.59 65 1.21 0.70 20.44 23.76 70 1.98 1.22 16.26 19.27 75 3.21 2.07 12.52 15.19 80 5.29 3.47 9.30 11.56 Probability of Future Life   Dying Next Year Expectancy (years)     This assumption is used to measure the probabilities of active members dying prior to retirement.   All deaths before retirement are assumed to be non‐service connected.         City of Clearwater Employees’ Pension Plan 21 GRS Retirement Consulting   For disabled retirees, the mortality table used was 60% of the RP‐2000 Mortality Table for Disabled  Annuitants with ages set back 4 years for males and set forward 2 years for females, and 40% of the  RP‐2000 Annuitants Mortality Table with a White Collar adjustment with no age set back, both with  no provision being made for future mortality improvements. These are the same rates used for  Special Risk Class members of the Florida Retirement System (FRS), as required under Florida  Statutes, Chapter 112.63.    FRS Disabled Mortality for Special Risk Class Members    Sample Attained Ages Men Women Men Women 50 1.67 % 0.91 % 23.74 27.06 55 2.03 1.26 20.77 23.37 60 2.47 1.67 17.91 19.90 65 3.07 2.24 15.15 16.62 70 3.90 3.18 12.52 13.58 75 5.30 4.60 10.02 10.86 80 7.59 6.66 7.80 8.48 Probability of Future Life   Dying Next Year Expectancy (years)     The mortality table for Nonhazardous Duty members is the RP‐2000 Combined Healthy Participant  Mortality Table (for pre‐retirement mortality) and the RP‐2000 Mortality Table for Annuitants (for  post‐retirement mortality) with future improvements in mortality projected to all future years using  Scale BB. For females, the base mortality rates include a 100% white collar adjustment. For males,  the base mortality rates include a 50% blue collar adjustment and a 50% white collar adjustment.  These are the same rates currently in use for Non‐Special Risk Class members of the Florida  Retirement System (FRS), as required under Florida Statutes, Chapter 112.63.      FRS Healthy Post‐Retirement Mortality for Non‐Special Risk Class Members    Sample Attained Ages (in 2018) Men Women Men Women 50 0.55 % 0.23 % 34.77 38.40 55 0.60 0.32 30.14 33.39 60 0.76 0.47 25.48 28.48 65 1.13 0.73 20.95 23.74 70 1.75 1.22 16.69 19.27 75 2.92 2.07 12.82 15.19 80 4.95 3.47 9.47 11.56 Probability of Future Life   Dying Next Year Expectancy (years)     This assumption is used to measure the probabilities of each benefit payment being made after  retirement.         City of Clearwater Employees’ Pension Plan 22 GRS Retirement Consulting   FRS Healthy Pre‐Retirement Mortality for Non‐Special Risk Class Members    Sample Attained Ages (in 2018) Men Women Men Women 50 0.21 % 0.15 % 35.69 38.75 55 0.36 0.24 30.57 33.61 60 0.61 0.39 25.64 28.59 65 1.07 0.70 20.99 23.76 70 1.75 1.22 16.69 19.27 75 2.92 2.07 12.82 15.19 80 4.95 3.47 9.47 11.56 Probability of Future Life   Dying Next Year Expectancy (years)     This assumption is used to measure the probabilities of active members dying prior to retirement.   All deaths before retirement are assumed to be non‐service connected.    For disabled retirees, the mortality table used was the RP‐2000 mortality for disabled annuitants,  set‐back 4 years for males and set‐forward 2 years for females, with no provision being made for  future mortality improvements. These are the same rates currently in use for Non‐Special Risk Class  members of the Florida Retirement System (FRS), as required under Florida Statutes, Chapter  112.63.      FRS Disabled Mortality for Non‐Special Risk Class Members    Sample Attained Ages Men Women Men Women 50 2.38 % 1.35 % 20.25 23.74 55 3.03 1.87 17.78 20.46 60 3.67 2.41 15.55 17.43 65 4.35 3.13 13.44 14.58 70 5.22 4.29 11.39 11.96 75 6.58 5.95 9.43 9.65 80 8.70 8.23 7.65 7.66 Probability of Future Life   Dying Next Year Expectancy (years)        City of Clearwater Employees’ Pension Plan 23 GRS Retirement Consulting     The rates of retirement used to measure the probability of eligible members retiring under normal  and early retirement eligibility during the next year were as follows:      Years of Probability of Service Age Retirement 10 ‐ 19 50 ‐ 59 10 % 60 ‐ 64 50 65 & Over 100 20 & Over Under 45 20 45 ‐ 49 15 50 ‐ 54 25 55 ‐ 59 35 60 ‐ 64 50 65 & Over 100 Hazardous Duty Retirement       Years of Probability of Service Age Retirement 10 ‐ 19 65 ‐ 69 45 % 70 ‐ 74 50 75 & Over 100 20 ‐ 29 55 ‐ 59 20 60 ‐ 64 25 65 ‐ 69 45 70 & Over 100 30 & Over Under 65 40 65 ‐ 69 50 70 & Over 100 Non‐Hazardous  Duty Retirement          City of Clearwater Employees’ Pension Plan 24 GRS Retirement Consulting     Rates of separation from active membership were as shown below (rates do not apply to members  eligible to retire and do not include separation on account of death or disability).  This assumption  measures the probabilities of members remaining in employment.  Years of % of  Active  Members Service Age Separating Within Next Year Under 1All Ages 12.8 % 1All Ages 5.7 2All Ages 4.8 3 & Over Under 30 4.0 30 ‐ 49 1.0 50 & Over 0.0 Hazardous  Duty Withdrawal ‐ Males and Females                                           City of Clearwater Employees’ Pension Plan 25 GRS Retirement Consulting       Years of % of Active  Members Years of % of Active  Members Service Age Separating Within Next Year Service Age Separating Within Next Year Under 1Under 30 25.0 % Under 1Under 25 35.0 % 30 ‐ 34 20.0 25 ‐ 34 30.0 35 ‐ 49 15.0 35 ‐ 39 25.0 50 ‐ 59 10.0 40 ‐ 49 20.0 60 & Over 5.0 50 ‐ 59 15.0 60 & Over 5.0 1Under 60 15.0 60 & Over 10.0 1 Under 30 25.0 30 ‐ 59 15.0 2Under 45 10.0 60 & Over 10.0 45 & Over 5.0 2Under 45 15.0 3Under 25 15.0 45 ‐ 59 7.5 25 ‐ 34 12.5 60 & Over 6.5 35 & Over 5.0 3Under 30 20.0 4Under 30 15.0 30 ‐ 59 10.0 30 ‐ 44 10.0 60 & Over 5.0 45 & Over 5.0 4Under 30 15.0 5 & Over Under 30 12.5 30 ‐ 34 12.5 30 ‐ 34 7.0 35 ‐ 44 10.0 35 ‐ 39 6.0 45 & Over 5.0 40 ‐ 44 5.0 45 ‐ 49 3.5 5 & Over Under 30 7.5 50 ‐ 54 4.0 30 ‐ 39 6.5 55 ‐ 59 5.0 40 ‐ 44 5.0 60 & Over 7.5 45 & Over 4.0 Non‐Hazardous Duty Withdrawal  ‐ Males Non‐Hazardous Duty Withdrawal ‐ Females      City of Clearwater Employees’ Pension Plan 26 GRS Retirement Consulting     Rates of disability among active members (100% of disabilities are assumed to be service‐ connected).      Sample Ages 20 0.25 % 0.375 % 25 0.25 0.375 30 0.25 0.375 35 0.30 0.450 40 0.40 0.600 45 0.50 0.750 50 0.55 0.825 55 0.60 0.900 60 0.75 1.125 65 1.00 1.500 70 1.75 2.625 Males Females Disabled  Within  Next Year % of Active Members Becoming   Hazardous Duty  Disability       Sample Ages 20 0.05 % 0.05 % 25 0.05 0.05 30 0.05 0.05 35 0.06 0.06 40 0.07 0.07 45 0.09 0.09 50 0.12 0.12 55 0.17 0.17 60 0.27 0.27 65 0.42 0.42 70 0.67 0.67 Non‐Hazardous Duty  Disability % of Active Members Becoming  Disabled Within  Next Year Males Females        City of Clearwater Employees’ Pension Plan 27 GRS Retirement Consulting   Miscellaneous and Technical Assumptions    Administrative & Investment  Expenses  The investment return assumption is intended to be the net return  after investment expenses.  Annual administrative expenses are  assumed to be equal to the administrative expenses of the  previous year.  Assumed administrative expenses are added to the  Normal Cost.     Benefit Service Exact fractional service is used to determine the amount of benefit  payable.    Cost of Living Increases The adjustment is 1.5% annually commencing on each April 1 for all  retirees and beneficiaries who have received at least 6 monthly  benefit payments. There is a five‐year delay in the COLA for non‐ grandfathered non‐hazardous duty members for benefits accrued  after January 1, 2013.  There is no COLA for non‐grandfathered  hazardous duty members for benefits accrued after January 1,  2013.     Decrement Operation Disability and mortality decrements operate during retirement  eligibility.     Decrement Timing Decrements of all types are assumed to occur at the beginning of  the year.     Eligibility Testing Eligibility for benefits is determined based upon the age nearest  birthday and service nearest whole year on the date the  decrement is assumed to occur.     Forfeitures For vested separations from service, it is assumed that 0% of  members separating will withdraw their contributions and forfeit  an employer financed benefit.  It was further assumed that the  liability at termination is the greater of the vested deferred benefit  (if any) or the member’s accumulated contributions.       Incidence of Contributions Employer contributions are assumed to be made in equal  installments during the first two quarters of the fiscal year.   Member contributions are assumed to be received continuously  throughout the year based upon the computed percent of payroll  shown in this report, and the actual payroll payable at the time  contributions are made.       City of Clearwater Employees’ Pension Plan 28 GRS Retirement Consulting     Marriage Assumption      85% of males and 85% of females are assumed to be married for  purposes of death‐in‐service benefits. Male spouses are assumed  to be five years older than female spouses for all active members  and for members who became inactive after January 1, 2009.  For  members who became inactive on or before January 1, 2009,  spouses ages are based on the assumed beneficiary dates of birth  provided by the prior actuary.     Normal Form of Benefit The normal form of benefit is a life annuity for non‐grandfathered  non‐hazardous duty members.  For all other members, the normal  form of benefit is a life annuity that includes a survivor benefit  where after the participant’s death, 100% is payable to the spouse  for five years, after which the benefit is reduced to 50%.     Pay Increase Timing End of fiscal year. This is equivalent to assuming that reported  pays represent the annual rate of pay on the valuation date.  The  pay used for the valuation is equal to the greater of the actual pay  for the plan year increased by the salary scale assumption rate  (which varies by years of service) and the annual rate of pay on the  valuation date.     Service Credit Accruals It is assumed that members accrue one year of service credit per  year.    City of Clearwater Employees’ Pension Plan 29 GRS Retirement Consulting   GLOSSARY      Actuarial Accrued Liability  (AAL)  The difference between the Actuarial Present Value of Future  Benefits, and the Actuarial Present Value of Future Normal Costs.       Actuarial Assumptions Assumptions about future plan experience that affect costs or  liabilities, such as: mortality, withdrawal, disablement, and  retirement; future increases in salary; future rates of investment  earnings; future investment and administrative expenses;  characteristics of members not specified in the data, such as marital  status; characteristics of future members; future elections made by  members; and other items.     Actuarial Cost Method A procedure for allocating the Actuarial Present Value of Future  Benefits between the Actuarial Present Value of Future Normal Costs  and the Actuarial Accrued Liability.     Actuarial Equivalent Of equal Actuarial Present Value, determined as of a given date and  based on a given set of Actuarial Assumptions.     Actuarial Present Value  (APV)  The amount of funds required to provide a payment or series of  payments in the future. It is determined by discounting the future  payments with an assumed interest rate and with the assumed  probability each payment will be made.     Actuarial Present Value of  Future Benefits (APVFB)  The Actuarial Present Value of amounts which are expected to be paid  at various future times to active members, retired members,  beneficiaries receiving benefits, and inactive, nonretired members  entitled to either a refund or a future retirement benefit. Expressed  another way, it is the value that would have to be invested on the  valuation date so that the amount invested plus investment earnings  would provide sufficient assets to pay all projected benefits and  expenses when due.     Actuarial Valuation The determination, as of a valuation date, of the Normal Cost,  Actuarial Accrued Liability, Actuarial Value of Assets, and related  Actuarial Present Values for a plan. An Actuarial Valuation for a  governmental retirement system typically also includes calculations of  the Funded Ratio and the Actuarially Determined Contribution (ADC).     Actuarial Value of Assets The value of the assets as of a given date, used by the actuary for  valuation purposes.  This may be the market or fair value of plan  assets or a smoothed value in order to reduce the year‐to‐year  volatility of calculated results, such as the funded ratio and the  Actuarially Determined Contribution (ADC).    City of Clearwater Employees’ Pension Plan 30 GRS Retirement Consulting     Actuarially Determined  Contribution (ADC)  The employer’s periodic required contributions, expressed as a dollar  amount or a percentage of covered plan compensation.  The ADC  consists of the Employer Normal Cost and Amortization Payment.    Amortization Method A method for determining the Amortization Payment. The most  common methods used are level dollar and level percentage of  payroll. Under the Level Dollar method, the Amortization Payment is  one of a stream of payments, all equal, whose Actuarial Present Value  is equal to the UAAL. Under the Level Percentage of Pay method, the  Amortization Payment is one of a stream of increasing payments,  whose Actuarial Present Value is equal to the UAAL. Under the Level  Percentage of Pay method, the stream of payments increases at the  rate at which total covered payroll of all active members is assumed  to increase.     Amortization Payment That portion of the plan contribution or ADC which is designed to pay  interest on and to amortize the Unfunded Actuarial Accrued Liability.     Amortization Period The period used in calculating the Amortization Payment.     Closed Amortization Period A specific number of years that is reduced by one each year, and  declines to zero with the passage of time. For example if the  amortization period is initially set at 30 years, it is 29 years at the end  of one year, 28 years at the end of two years, etc.      Employer Normal Cost The portion of the Normal Cost to be paid by the employer.  This is  equal to the Normal Cost less expected member contributions.     Equivalent Single  Amortization Period  For plans that do not establish separate amortization bases (separate  components of the UAAL), this is the same as the Amortization Period.   For plans that do establish separate amortization bases, this is the  period over which the UAAL would be amortized if all amortization  bases were combined upon the current UAAL payment.     Experience Gain/Loss A measure of the difference between the normal cost rate from last  year and the normal cost rate from this year.     Funded Ratio The ratio of the Actuarial Value of Assets to the Actuarial Accrued  Liability.     Normal Cost The annual cost assigned, under the Actuarial Cost Method, to the  current plan year.       City of Clearwater Employees’ Pension Plan 31 GRS Retirement Consulting     Open Amortization Period      An open amortization period is one which is used to determine the  Amortization Payment but which does not change over time. In other  words, if the initial period is set as 30 years, the same 30‐year period  is used in determining the Amortization Period each year.  In theory, if  an Open Amortization Period is used to amortize the Unfunded  Actuarial Accrued Liability, the UAAL will never completely disappear,  but will become smaller each year, either as a dollar amount or in  relation to covered payroll.     Unfunded Actuarial Accrued  Liability  The difference between the Actuarial Accrued Liability and Actuarial  Value of Assets.       Valuation Date  The date as of which the Actuarial Present Value of Future Benefits  are determined. The benefits expected to be paid in the future are  discounted to this date.    SECTION C  PENSION FUND INFORMATION                                City of Clearwater Employees’ Pension Plan 32 GRS Retirement Consulting     Statement of Plan Assets at Market Value 2017 2016 A. Cash and Cash Equivalents (Operating Cash)‐$                              ‐$                              B. Receivables 1. Member Contributions ‐$                              ‐$                              2. Employer Contributions 4,898,468               5,462,001                3. Investment Income and Other Receivables 5,736,629               2,476,889                4. Total Receivables 10,635,097$           7,938,890$              C. Investments 1. Short‐Term Investments 28,627,149$           30,857,465$            2. Domestic Equities 432,388,268           389,773,760            3. International Equities 185,785,460           159,375,680            4. Domestic Fixed Income 280,945,411           254,108,019            5. International Fixed Income ‐                                 ‐                                 6. Real Estate 88,936,244             84,706,678              7. Infrastructure 31,973,181              ‐                                 8. Private Equity ‐                                 ‐                                 9. Total Investments 1,048,655,713$     918,821,602$          D. Liabilities  1. Benefits Payable ‐$                              ‐$                              2. Accrued Expenses and Other Payables (40,180,618)            (21,499,087)             3. Total Liabilities (40,180,618)$          (21,499,087)$           E. Total Market Value of Assets Available for Benefits 1,019,110,192$     905,261,405$          F. Allocation of Investments 1. Short‐Term Investments 2.73% 3.36% 2. Domestic Equities 41.23% 42.42% 3. International Equities 17.72% 17.35% 4. Domestic Fixed Income 26.79% 27.65% 5. International Fixed Income 0.00% 0.00% 6. Real Estate 8.48% 9.22% 7. Infrastructure 3.05% 0.00% 8. Private Equity 0.00% 0.00% 9. Total Investments 100.00% 100.00% December 31 Item             City of Clearwater Employees’ Pension Plan 33 GRS Retirement Consulting      Reconciliation  of Plan Assets 2017 2016 A. Market Value of Assets at Beginning of Year 905,261,405$         873,505,080$          B. Revenues and Expenditures 1. Contributions a. Employee Contributions 7,070,641$              6,745,883$               b. Employer Contributions 10,660,241              11,717,548               c. State Contributions 12,000                      12,000                       d. Total 17,742,882$            18,475,431$             2. Investment Income a. Interest, Dividends, and Other Income 18,750,403$            17,968,591$             b. Net Realized Gains/(Losses) 53,515,048              37,295,825               c. Net Unrealized Gains/(Losses) 76,499,841              7,582,732                 d. Investment Expenses (6,169,286)               (5,165,139)                e. Net Investment Income 142,596,006$         57,682,009$             3. Benefits and Refunds a. Refunds (1,028,495)$             (1,226,578)$              b. Regular Monthly Benefits (44,639,425)             (41,584,416)              c. Partial Lump‐Sum Benefits Paid (527,256)                  (1,288,340)                d. Total (46,195,176)$          (44,099,334)$           4. Administrative and Miscellaneous Expenses (294,925)$                (301,781)$                 5. Transfers ‐$                               ‐$                               C. Market Value of Assets at End of Year 1,019,110,192$      905,261,405$          December 31 Item          City of Clearwater Employees’ Pension Plan34 GRSRetirementConsultingDevelopment of Actuarial Value of AssetsValuation Date ‐ December 31 2016 2017 2018 2019 2020 2021A. Actuarial Value of Assets Beginning of Year 882,169,478$      927,675,129$      B. Market Value End of Year 905,261,405         1,019,110,192     C. Market Value Beginning of Year 873,505,080         905,261,405         D. Non‐Investment/Administrative Net Cash Flow (25,925,684)          (28,747,219)          E. Investment IncomeE1.  Actual Market Total:  B‐C‐D 57,682,009           142,596,006         E2.  Assumed Rate of Return 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%E3.  Assumed Amount of Return 60,007,730           62,170,412           E4.  Amount Subject to Phase‐In: E1–E3 (2,325,721)            80,425,594           F. Phase‐In Recognition of Investment IncomeF1.  Current Year:  0.2 x E4 (465,144)               16,085,119           F2.  First Prior Year (12,846,426)          (465,144)               16,085,119       F3.  Second Prior Year 1,723,554             (12,846,426)          (465,144)           16,085,119       F4.  Third Prior Year 14,539,026           1,723,554             (12,846,426)     (465,144)           16,085,119     F5.  Fourth Prior Year 8,472,595             14,539,026           1,723,552         (12,846,427)      (465,145)         16,085,118     F6.  Total Phase‐Ins 11,423,605           19,036,129           4,497,101         2,773,548         15,619,974     16,085,118     G. Actuarial Value of Assets End of YearG1.  Preliminary Actuarial Value of Assets 927,675,129$      980,134,451$      G2.  Upper Corridor Limit: 120%*B 1,086,313,686$   1,222,932,230$   G3.  Lower Corridor Limit: 80%*B 724,209,124$      815,288,154$      G4.  Funding Value End of Year 927,675,129$      980,134,451$      G5.  Credit Balance 19,445,883$         22,819,909$         G6.  Final Actuarial Value of Assets 908,229,246$      957,314,542$      H. Recognized Investment Earnings 71,431,335$         81,206,541$         I. Difference between Market & Actuarial Value (22,413,724)$       38,975,741$         J. Actuarial Rate of Return8.22% 8.89%K. Market Value Rate of Return6.70% 16.01%L. Ratio of Actuarial Value of Assets to Market Value102.48% 96.18%   The Actuarial Value of Assets recognizes assumed investment return (line E3) fully each year.  Differences between actual and assumed investment income (Line E4) are phased‐in over a closed 5‐year period.  During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than Market Value.  During periods when investment performance is less than the assumed rate, Actuarial Value of Assets will tend to be greater than Market Value.  If assumed rates are exactly realized for 5 consecutive years, Actuarial Value of Assets will become equal to Market Value.    City of Clearwater Employees’ Pension Plan 35 GRS Retirement Consulting Investment Rate  of Return Plan Year Ending December 31 1986 13.21 % N/A 1987 10.78 N/A 1988 9.12 N/A 1989 20.84 N/A 1990 6.21 N/A 1991 28.52 N/A 1992 6.49 N/A 1993 9.29 7.42 % 1994 0.89 6.28 1995 23.36 9.14 1996 14.80 11.54 1997 17.49 13.74 1998 16.74 15.28 1999 18.61 17.96 2000 (3.43) 12.42 2001 (5.16) 7.40 2002 (8.83) (1.85) 2003 20.08 7.45 2004 9.73 2.18 2005 6.67 4.58 2006 11.80 7.87 2007 7.29 10.68 2008 (27.01) (10.61) 2009 30.93 16.53 2010 17.50 5.98 2011 (0.32) 4.46 2012 13.92 5.50 2013 16.90 14.04 2014 7.99 11.04 2015 (0.28) 7.64 2016 6.70 8.22 2017 16.01 8.89 Average returns:    Last five years: 9.28 % 9.94  %     Last ten years: 7.11 % 6.93  %     All years: 9.27 % 7.98  %  Actuarial*Market*           *Before investment expenses prior to 2013.    The above rates are based on the retirement system’s financial information reported to the actuary.  They  may differ from figures that the investment consultant reports, in part because of differences in the handling  of administrative and investment expenses, and in part because of differences in the handling of cash flows.    SECTION D  FINANCIAL ACCOUNTING INFORMATION                            City of Clearwater Employees’ Pension Plan 36 GRS Retirement Consulting   A. Valuation Date B. Actuarial  Present Value of Accumulated Plan Benefits   1. Vested  Benefits a. Members Currently Receiving Payments $ 608,399,358 $ 574,794,636 b. Terminated Vested Members 14,735,991 14,083,542 c. Other Members 230,918,891 233,198,125 d. Total 854,054,240 822,076,303 2. Non ‐Vested Benefits 12,669,128 13,857,384 3. Total  Actuarial Present Value of Accumulated Plan Benefits: 1d  + 2 866,723,368 835,933,687 4. Accumulated Contributions of Active Members 60,969,115 60,655,020 C. Changes in the  Actuarial Present Value of  Accumulated Plan Benefits 1. Total  Value at Beginning of Year 835,933,687 807,130,603 2. Increase  (Decrease) During the  Period Attributable  to: a. Plan Amendment 0 0 b. Change in Actuarial Assumptions 0 (134,124) c. Latest Member  Data, Benefits Accumulated and  Decrease  in the  Discount Period 76,984,857 73,036,542 d. Benefits Paid (46,195,176) (44,099,334) e. Net Increase 30,789,681 28,803,084 3. Total  Value at End  of Period 866,723,368 835,933,687 D. Market Value of Assets 1,019,110,192 905,261,405 E. Actuarial  Assumptions ‐ See page entitled Actuarial Assumptions and Methods FASB NO. 35 INFORMATION January 1, 2018 January  1, 2017            SECTION E  MISCELLANEOUS INFORMATION                        City of Clearwater Employees’ Pension Plan 37 GRS Retirement Consulting   A. 1. Number Included in Last Valuation 1,520  1,505   2. New Members  Included in Current Valuation 163 158 3. Non‐Vested  Employment Terminations (85) (71) 4. Vested Employment Terminations (25) (18) 5. Service Retirements (47) (49) 6. Disability Retirements (2) (4) 7. Deaths (2) (2) 8. Pending Disabilities 0 0 9. Rehired Members/Data  Corrections 1 1 10. Number Included in This  Valuation 1,523  1,520   B. 1. Number Included in Last Valuation 66 63 2. Additions  from Active Members 25 18 3. Lump Sum Payments/Refund of Contributions (3) (6) 4. Payments  Commenced (13) (9) 5. Deaths 0 0 6. Conversion from Disability/Rehired Members (1) (1) 7. Data Corrections 1 1 8. Number Included in This  Valuation 75 66 C. 1. Number Included in Last Valuation 1,212  1,174   2. Additions  from Active Members 48 53 3. Additions  from Terminated  Vested Members 13 9 4. Deaths Resulting in No  Further Payments (13) (20) 5. Deaths Resulting in New Survivor  Benefits 1 1 6. Pending Disabilities 0 0 7. End of Certain Period ‐ No  Further Payments (2) (3) 8. Data Correction/Waiver of Benefits 0 (2) 9. Number Included in This  Valuation 1,259  1,212   RECONCILIATION  OF MEMBERSHIP DATA Active Members Service Retirees, Disability Retirees and Beneficiaries Terminated Vested Members From  1/1/2016From 1/1/2017 To  1/1/2017To 1/1/2018        City of Clearwater Employees’ Pension Plan 38 GRS Retirement Consulting     ACTIVE PARTICIPANT DISTRIBUTION  ALL ACTIVE MEMBERS      Age Group 0‐1   1‐2   2‐3   3‐4   4‐5   5‐9   10‐14   15‐19   20‐24   25‐29   30‐34   35+Totals 15‐19 NO. 100000000000 1 TOT PAY 23,309 0 0 0 0 0 0 0 0 0 0 0 23,309 AVG PAY 23,309 0 0 0 0 0 0 0 0 0 0 0 23,309 20‐24 NO. 291912310 00 000064 TOT PAY 884,106 832,263 383,983 94,703 28,441 0 0 0 0 0 0 0 2,223,496 AVG PAY 30,486 43,803 31,999 31,568 28,441 0 0 0 0 0 0 0 34,742 25‐29 NO. 433229201312 0 0 0 000149 TOT PAY 1,589,433 1,314,400 1,295,550 915,277 538,732 612,634 0 0 0 0 0 0 6,266,026 AVG PAY 36,964 41,075 44,674 45,764 41,441 51,053 0 0 0 0 0 0 42,054 30‐34 NO. 312821191540 35 0 0 000189 TOT PAY 1,217,698 1,182,949 1,036,078 955,118 752,146 2,047,755 2,244,913 0 0 0 0 0 9,436,657 AVG PAY 39,281 42,248 49,337 50,269 50,143 51,194 64,140 0 0 0 0 0 49,929 35‐39 NO. 15 16 7 12 13 21 68 9 0 0 0 0 161 TOT PAY 579,602 726,625 294,676 577,792 666,210 1,229,269 4,111,762 617,201 0 0 0 0 8,803,137 AVG PAY 38,640 45,414 42,097 48,149 51,247 58,537 60,467 68,578 0 0 0 0 54,678 40‐44 NO. 16 6 7 8 10 29 62 61 8 0 0 0 207 TOT PAY 537,341 204,701 268,754 329,584 528,566 1,410,578 4,113,062 4,112,773 692,246 0 0 0 12,197,605 AVG PAY 33,584 34,117 38,393 41,198 52,857 48,641 66,340 67,423 86,531 0 0 0 58,926 45‐49 NO. 12 9 9 11 5 27 49 54 40 7 0 0 223 TOT PAY 437,085 360,349 446,920 485,384 198,992 1,453,369 3,013,722 4,265,328 3,167,434 596,438 0 0 14,425,021 AVG PAY 36,424 40,039 49,658 44,126 39,798 53,828 61,505 78,988 79,186 85,205 0 0 64,686 50‐54 NO. 6 9 8 5 2 21 30 37 42 25 3 0 188 TOT PAY 232,674 344,595 387,456 218,466 106,941 866,872 1,658,499 2,332,310 2,984,920 1,904,102 249,171 0 11,286,006 AVG PAY 38,779 38,288 48,432 43,693 53,470 41,280 55,283 63,035 71,070 76,164 83,057 0 60,032 55‐59 NO. 8 7 3 8 4 20 41 33 33 11 10 1 179 TOT PAY 326,043 266,616 114,327 407,311 130,995 904,245 1,912,413 1,783,771 1,823,901 849,851 661,300 46,824 9,227,597 AVG PAY 40,755 38,088 38,109 50,914 32,749 45,212 46,644 54,054 55,270 77,259 66,130 46,824 51,551 60‐64 NO. 1 1 2 1 3 12 25 24 21 12 8 2 112 TOT PAY 23,309 84,114 64,590 53,769 114,480 561,786 1,229,114 1,101,385 1,145,990 860,408 561,662 98,235 5,898,842 AVG PAY 23,309 84,114 32,295 53,769 38,160 46,816 49,165 45,891 54,571 71,701 70,208 49,118 52,668 65+ NO. 1 1 2 1 0 7 15 11 6 2 3 1 50 TOT PAY 24,321 29,282 84,869 44,464 0 315,428 692,322 651,955 323,493 103,930 213,085 46,462 2,529,611 AVG PAY 24,321 29,282 42,434 44,464 0 45,061 46,155 59,269 53,916 51,965 71,028 46,462 50,592                                                                                                                                          TOT NO. 163 128 100 88 66 189 325 229 150 57 24 4 1,523 TOT AMT 5,874,921 5,345,894 4,377,203 4,081,868 3,065,503 9,401,936 18,975,807 14,864,723 10,137,984 4,314,729 1,685,218 191,521 82,317,307 AVG AMT 36,042 41,765 43,772 46,385 46,447 49,746 58,387 64,911 67,587 75,697 70,217 47,880 54,049 Years of Service to Valuation Date        City of Clearwater Employees’ Pension Plan 39 GRS Retirement Consulting   ACTIVE PARTICIPANT DISTRIBUTION  HAZARDOUS DUTY MEMBERS      Age Group 0‐1   1‐2   2‐3   3‐4   4‐5   5‐9   10‐14   15‐19   20‐24   25‐29   30‐34   35+Totals 15‐19 NO. 000000 00 0000 0 TOT PAY 000000 00 0000 0 AVG PAY 000000 00 0000 0 20‐24 NO. 471000 00 000012 TOT PAY 202,246 435,582 62,838 0 0 0 0 0 0 0 0 0 700,666 AVG PAY 50,562 62,226 62,838 0 0 0 0 0 0 0 0 0 58,389 25‐29 NO.141010834 00 000049 TOT PAY 714,705 608,585 655,081 503,149 195,939 288,861 0 0 0 0 0 0 2,966,320 AVG PAY 51,050 60,859 65,508 62,894 65,313 72,215 0 0 0 0 0 0 60,537 30‐34 NO. 8698613160 000066 TOT PAY 415,035 379,118 571,917 555,481 384,882 988,079 1,412,782 0 0 0 0 0 4,707,294 AVG PAY 51,879 63,186 63,546 69,435 64,147 76,006 88,299 0 0 0 0 0 71,323 35‐39 NO. 1415510304 000060 TOT PAY 51,275 251,744 67,421 313,304 322,138 754,783 2,463,424 412,585 0 0 0 0 4,636,674 AVG PAY 51,275 62,936 67,421 62,661 64,428 75,478 82,114 103,146 0 0 0 0 77,278 40‐44 NO. 1010463428 500079 TOT PAY 56,530 0 59,249 0 280,139 417,305 2,813,933 2,654,581 553,353 0 0 0 6,835,090 AVG PAY 56,530 0 59,249 0 70,035 69,551 82,763 94,806 110,671 0 0 0 86,520 45‐49 NO. 2 0 1 1 0 6 21 34 20 3 0 0 88 TOT PAY 124,131 0 83,358 65,493 0 456,050 1,807,412 3,186,732 2,082,180 384,414 0 0 8,189,770 AVG PAY 62,066 0 83,358 65,493 0 76,008 86,067 93,727 104,109 128,138 0 0 93,066 50‐54 NO. 0 1 2 0 0 1 8 9 14 11 1 0 47 TOT PAY 0 83,157 157,717 0 0 93,064 706,871 1,013,526 1,401,881 1,088,336 117,657 0 4,662,209 AVG PAY 0 83,157 78,859 0 0 93,064 88,359 112,614 100,134 98,940 117,657 0 99,196 55‐59 NO. 000202 41 242017 TOT PAY 0 0 0 216,522 0 206,049 381,630 98,299 194,153 421,758 242,654 0 1,761,065 AVG PAY 0 0 0 108,261 0 103,025 95,408 98,299 97,077 105,440 121,327 0 103,592 60‐64 NO. 010000 21 0110 6 TOT PAY 0 84,114 0 0 0 0 211,479 85,342 0 99,037 111,778 0 591,750 AVG PAY 0 84,114 0 0 0 0 105,740 85,342 0 99,037 111,778 0 98,625 65+ NO. 000000 10 0000 1 TOT PAY 0 0 0 0 0 0 92,567 0 0 0 0 0 92,567 AVG PAY 0 0 0 0 0 0 92,567 0 0 0 0 0 92,567                                                                                                                                          TOT NO. 30 29 25 24 18 42 116 77 41 19 4 0 425 TOT AMT 1,563,922 1,842,300 1,657,581 1,653,949 1,183,098 3,204,191 9,890,098 7,451,065 4,231,567 1,993,545 472,089 0 35,143,405 AVG AMT 52,131 63,528 66,303 68,915 65,728 76,290 85,259 96,767 103,209 104,923 118,022 0 82,690 Years of Service to Valuation Date        City of Clearwater Employees’ Pension Plan 40 GRS Retirement Consulting   ACTIVE PARTICIPANT DISTRIBUTION  NON‐HAZARDOUS DUTY MEMBERS      Age Group 0‐1   1‐2   2‐3   3‐4   4‐5   5‐9   10‐14   15‐19   20‐24   25‐29   30‐34   35+Totals 15‐19  NO. 100000000000 1 TOT PAY23,30900000 00 000023,309 AVG PAY23,30900000 00 000023,309 20‐24 NO. 251211310 00 000052 TOT PAY 681,860 396,681 321,145 94,703 28,441 0 0 0 0 0 0 0 1,522,830 AVG PAY 27,274 33,057 29,195 31,568 28,441 0 0 0 0 0 0 0 29,285 25‐29 NO. 2922191210 8 0 0 0 000100 TOT PAY 874,728 705,815 640,469 412,128 342,793 323,773 0 0 0 0 0 0 3,299,706 AVG PAY 30,163 32,083 33,709 34,344 34,279 40,472 0 0 0 0 0 0 32,997 30‐34 NO. 23 22 12 11 9 27 19 0 0 0 0 0 123 TOT PAY 802,663 803,831 464,161 399,637 367,264 1,059,676 832,131 0 0 0 0 0 4,729,363 AVG PAY 34,898 36,538 38,680 36,331 40,807 39,247 43,796 0 0 0 0 0 38,450 35‐39 NO. 141267811385 0000101 TOT PAY 528,327 474,881 227,255 264,488 344,072 474,486 1,648,338 204,616 0 0 0 0 4,166,463 AVG PAY 37,738 39,573 37,876 37,784 43,009 43,135 43,377 40,923 0 0 0 0 41,252 40‐44 NO. 156686232833 3000128 TOT PAY 480,811 204,701 209,505 329,584 248,427 993,273 1,299,129 1,458,192 138,893 0 0 0 5,362,515 AVG PAY 32,054 34,117 34,918 41,198 41,405 43,186 46,397 44,188 46,298 0 0 0 41,895 45‐49 NO. 10 9 8 10 5 21 28 20 20 4 0 0 135 TOT PAY 312,954 360,349 363,562 419,891 198,992 997,319 1,206,310 1,078,596 1,085,254 212,024 0 0 6,235,251 AVG PAY 31,295 40,039 45,445 41,989 39,798 47,491 43,083 53,930 54,263 53,006 0 0 46,187 50‐54 NO. 6 8 6 5 2 20 22 28 28 14 2 0 141 TOT PAY 232,674 261,438 229,739 218,466 106,941 773,808 951,628 1,318,784 1,583,039 815,766 131,514 0 6,623,797 AVG PAY 38,779 32,680 38,290 43,693 53,471 38,690 43,256 47,099 56,537 58,269 65,757 0 46,977 55‐59 NO. 8 7 3 6 4 18 37 32 31 7 8 1 162 TOT PAY 326,043 266,616 114,327 190,789 130,995 698,196 1,530,783 1,685,472 1,629,748 428,093 418,646 46,824 7,466,532 AVG PAY 40,755 38,088 38,109 31,798 32,749 38,789 41,373 52,671 52,573 61,156 52,331 46,824 46,090 60‐64 NO. 1 0 2 1 3 12 23 23 21 11 7 2 106 TOT PAY 23,309 0 64,590 53,769 114,480 561,786 1,017,635 1,016,043 1,145,990 761,371 449,884 98,235 5,307,092 AVG PAY 23,309 0 32,295 53,769 38,160 46,816 44,245 44,176 54,571 69,216 64,269 49,118 50,067 65+ NO. 1 1 2 1 0 7 14 11 6 2 3 1 49 TOT PAY 24,321 29,282 84,869 44,464 0 315,428 599,755 651,955 323,493 103,930 213,085 46,462 2,437,044 AVG PAY 24,321 29,282 42,435 44,464 0 45,061 42,840 59,269 53,916 51,965 71,028 46,462 49,736                                                                                                                                         TOT NO. 133 99 75 64 48 147 209 152 109 38 20 4 1,098 TOT AMT 4,310,999 3,503,594 2,719,622 2,427,919 1,882,405 6,197,745 9,085,709 7,413,658 5,906,417 2,321,184 1,213,129 191,521 47,173,902 AVG AMT 32,414 35,390 36,262 37,936 39,217 42,162 43,472 48,774 54,187 61,084 60,656 47,880 42,963 Years  of  Service to Valuation Date        City of Clearwater Employees’ Pension Plan 41 GRS Retirement Consulting   INACTIVE PARTICIPANT DISTRIBUTION    Disabled Retired Total Total Total Total Age  Group Number Benefits Number Benefits Number Benefits Number Benefits Under  20 ‐            ‐                    ‐            ‐                          ‐            ‐                      3          33,564        20‐24 ‐            ‐                    ‐            ‐                          ‐            ‐                       ‐            ‐                   25‐29 ‐            ‐                    ‐            ‐                          ‐            ‐                       ‐            ‐                   30‐34 2          27,437        1          37,310               ‐            ‐                      1          34,125        35‐39 10        177,615     2          88,302               ‐            ‐                       ‐            ‐                   40‐44 11        227,465     4          175,091           3          122,602         1          51,685        45‐49 18        372,341     11        459,395           24        1,007,916     4          80,400        50‐54 17        352,147     7          249,756           64        2,928,955     6          179,642      55‐59 7          121,014     21        677,292           137      6,081,888     12        373,699      60‐64 10        129,697     23        627,931           214      9,179,868     17        329,957      65‐69 ‐            ‐                   25        709,930           248      9,782,094     12        339,474      70‐74 ‐            ‐                   22        520,553           160      5,719,703     27        615,966      75‐79 ‐            ‐                   11        297,663           62        2,408,548     22        500,680      80‐84 ‐            ‐                   8          174,108           44        1,298,759     23        321,564      85‐89 ‐            ‐                   1          23,476              15        350,598         4          56,268        90‐94 ‐            ‐                    ‐            ‐                         7          115,428         10        90,160        95‐99 ‐            ‐                    ‐            ‐                         1          21,380           2          4,706          100 & Over ‐            ‐                    ‐            ‐                          ‐            ‐                       ‐            ‐                   Total 75        1,407,716  136      4,040,807        979      39,017,739   144      3,011,890  Average Age 49                64                      66                   71                Terminated Vested Deceased with  Beneficiary       SECTION F  SUMMARY OF PLAN PROVISIONS                            City of Clearwater Employees’ Pension Plan 42 GRS Retirement Consulting   SUMMARY OF PLAN PROVISIONS      A. Ordinances    The Plan was established under the Code of Ordinances for the City of Clearwater, Florida,  Chapter 2, Article V, Division 3 and was most recently amended under Ordinance No. 8333‐12  passed and adopted on July 19, 2012 and enacted by public referendum in November 2012. The  Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes (F.S.) and the  Internal Revenue Code.    B. Effective Date    Restated Plan Effective Date: January 1, 2013 (previous restated Plan Effective Date was January  1, 1996).    C. Plan Year    January 1 through December 31.    D. Type of Plan    Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single  employer plan.     E. Eligibility Requirements    All full‐time permanent employees of the City are required to participate and become  participants on their date of hire.     F. Grandfathered Members    Members who are eligible for normal retirement as of January 1, 2013 are grandfathered in the  plan provisions in effect before Ordinance No. 8333‐12.    G. Credited Service    Credited Service is measured as the total number of years and fractional parts of years from the  date of employment to the date of termination or retirement. No service is credited for any  periods of employment for which a participant received a refund of their contributions.        City of Clearwater Employees’ Pension Plan 43 GRS Retirement Consulting   H. Compensation    The total compensation for services rendered to the City reportable on the participant’s W‐2  form, plus all tax deferred, tax sheltered or tax exempt items of income derived from elective  employee payroll deductions or salary reductions, but excluding any lump sum payments of  unused vacation and sick leave, pay for off‐duty employment, and clothing, car or meal  allowances.     Effective January 1, 2013:  For non‐grandfathered hazardous duty members, the amount of  overtime included in Compensation is limited to 300 hours per year; For non‐grandfathered non‐ hazardous duty members, Compensation excludes overtime and additional pay above the base  rate of pay.    I. Average Monthly Compensation (AMC)    One‐twelfth of the average of Compensation during the highest 5 years out of the last 10 years  preceding termination or retirement.     J. Normal Retirement    Eligibility: For Non‐Hazardous Duty Employment     A participant hired before January 1, 2013 may retire on the first day of the  month coincident with or next following the earliest of:        (1) age 55 with 20 years of Credited Service, or      (2) 30 years of Credited Service regardless of age, or      (3) age 65 with 10 years of Credited Service.    A participant hired on or after January 1, 2013 may retire on the first day of the  month coincident with or next following the earliest of:    (1) age 60 with 25 years of Credited Service, or  (2) age 65 with 10 years of Credited Service        For Hazardous Duty Employment‐Police Officers and Firefighters    A participant may retire on the first day of the month coincident with or next  following the earlier of:        (1) age 55 with 10 years of Credited Service, or      (2) 20 years of Credited Service regardless of age.               City of Clearwater Employees’ Pension Plan 44 GRS Retirement Consulting     Benefit: 2.75% of AMC multiplied by years of Credited Service.     For Non‐Hazardous Duty participants hired on or after January 1, 2013, 2.00% of  AMC multiplied by years of Credited Service.    Normal Form        of Benefit: For Non‐Hazardous Duty Employment (Non‐Grandfathered)        A monthly annuity is paid for the life of the participant.    For Hazardous Duty Employment‐Police Officers and Firefighters (and  Grandfathered Non‐Hazardous Duty Employment)    A monthly annuity is paid for the life of the participant. After the participant’s  death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity  to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50%  of the original amount. The survivor annuity ceases upon death or remarriage of  the spouse. 120 monthly payments are guaranteed for police officers and  firefighters. Optional forms of benefits are available.    COLA:   For Non‐Hazardous Duty Employment    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is a five‐ year delay (after the retirement date) until this COLA is applied to benefits  accrued after January 1, 2013.         For Hazardous Duty Employment‐Police Officers and Firefighters    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is no  COLA for benefits accrued after January 1, 2013.     K. Early Retirement    Eligibility: Police Officers and Firefighters may elect to retire earlier than the Normal  Retirement Eligibility upon the attainment of age 50 with 10 years of Credited  Service.    Benefit: The Normal Retirement Benefit is reduced by 3.0% for each year by which the  Early Retirement date precedes age 55.          City of Clearwater Employees’ Pension Plan 45 GRS Retirement Consulting     Normal Form       of Benefit: A monthly annuity is paid for the life of the participant. After the participant’s  death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity  to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50%  of the original amount. The survivor annuity ceases upon death or remarriage of  the spouse. 120 monthly payments are guaranteed for police officers and  firefighters. Optional forms of benefits are available.    COLA: 1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is no  COLA for benefits accrued after January 1, 2013.    L. Delayed Retirement     Same as Normal Retirement taking into account Compensation earned and service credited until  the date of actual retirement.    M. Service Connected Disability    Eligibility: Any participant who becomes totally and permanently disabled due to an illness  or injury contracted in the line of duty and is deemed to be unable to perform  useful and efficient service to the City is immediately eligible for a disability  benefit.     Benefit: For Non‐Hazardous Duty Employment      Participant’s accrued Normal Retirement Benefit taking into account  Compensation earned and service credited until the date of disability. Benefit is  guaranteed to be no less than 42% of the participant’s AMC (66 2/3% of the  participant’s AMC if grandfathered). Disability benefits, when combined with  Worker’s Compensation benefits, cannot exceed and will be limited to 100% of  the participant’s AMC on the date of disability.    For Hazardous Duty Employment‐Police Officers and Firefighters     Participant’s accrued Normal Retirement Benefit taking into account  Compensation earned and service credited until the date of disability. Benefit is  guaranteed to be no less than 66 2/3% of the participant’s AMC. Disability  benefits, when combined with Worker’s Compensation benefits, cannot exceed  and will be limited to 100% of the participant’s AMC on the date of disability.       City of Clearwater Employees’ Pension Plan 46 GRS Retirement Consulting     Normal Form        of Benefit: For Non‐Hazardous Duty Employment (Non‐Grandfathered)        A monthly annuity is paid for the life of the participant.    For Hazardous Duty Employment‐Police Officers and Firefighters (and  Grandfathered Non‐Hazardous Duty Employment)    A monthly annuity is paid for the life of the participant. After the participant’s  death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity  to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50%  of the original amount. The survivor annuity ceases upon death or remarriage of  the spouse. 120 monthly payments are guaranteed for police officers and  firefighters. Optional forms of benefits are available.    COLA:   For Non‐Hazardous Duty Employment    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is a five‐ year delay (after the retirement date) until this COLA is applied to benefits  accrued after January 1, 2013.         For Hazardous Duty Employment‐Police Officers and Firefighters    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is no  COLA for benefits accrued after January 1, 2013.    N. Non‐Service Connected Disability    Eligibility: Any participant who has 10 or more years of Credited Service and becomes  totally and permanently disabled and is deemed to be unable to perform useful  and efficient service to the City is immediately eligible for a disability benefit.    Benefit: Participant’s accrued Normal Retirement Benefit taking into account  Compensation earned and service credited until the date of disability. Disability  benefits, when combined with Worker’s Compensation benefits, cannot exceed  and will be limited to 100% of the participant’s AMC on the date of disability.    Normal Form       of Benefit: For Non‐Hazardous Duty Employment (Non‐Grandfathered)        A monthly annuity is paid for the life of the participant.       City of Clearwater Employees’ Pension Plan 47 GRS Retirement Consulting     For Hazardous Duty Employment‐Police Officers and Firefighters (and  Grandfathered Non‐Hazardous Duty Employment)    A monthly annuity is paid for the life of the participant. After the participant’s  death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity  to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50%  of the original amount. The survivor annuity ceases upon death or remarriage of  the spouse. 120 monthly payments are guaranteed for police officers and  firefighters. Optional forms of benefits are available.    COLA:   For Non‐Hazardous Duty Employment    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is a five‐ year delay (after the retirement date) until this COLA is applied to benefits  accrued after January 1, 2013.         For Hazardous Duty Employment‐Police Officers and Firefighters    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is no  COLA for benefits accrued after January 1, 2013.    O. Death in the Line of Duty     Eligibility: Any participant whose employment is terminated by reason of death in the line  of duty is eligible for survivor benefits.     Benefit: Beneficiary will be paid the participant’s accrued benefit based upon Credited  Service and AMC as of the date of death. Benefit is guaranteed to be no less than  66 2/3% of the participant’s AMC.    Normal Form        of Benefit: 100% of the participant’s accrued benefit shall be paid as a survivor annuity to  the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of  the original amount. The survivor annuity ceases upon death or remarriage of the  spouse. 120 monthly payments are guaranteed for police officers and firefighters.          City of Clearwater Employees’ Pension Plan 48 GRS Retirement Consulting     COLA:   For Non‐Hazardous Duty Employment    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is a five‐ year delay (after the retirement date) until this COLA is applied to benefits  accrued after January 1, 2013.         For Hazardous Duty Employment‐Police Officers and Firefighters    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is no  COLA for benefits accrued after January 1, 2013.    In lieu of the benefits described above, the participant’s beneficiary can elect to receive a  refund of participant’s accumulated contributions with interest.    P. Other Pre‐Retirement Death    Eligibility: Any participant who dies with 10 or more years of Credited Service is eligible for  survivor benefits.     Benefit: Beneficiary will be paid the participant’s accrued benefit based upon Credited  Service and AMC as of the date of death.     Normal Form        of Benefit: 100% of the participant’s accrued benefit shall be paid as a survivor annuity to  the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50% of  the original amount. The survivor annuity ceases upon death or remarriage of the  spouse. 120 monthly payments are guaranteed for police officers and firefighters.    COLA:   For Non‐Hazardous Duty Employment    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is a five‐ year delay (after the retirement date) until this COLA is applied to benefits  accrued after January 1, 2013.         For Hazardous Duty Employment‐Police Officers and Firefighters    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is no  COLA for benefits accrued after January 1, 2013.    City of Clearwater Employees’ Pension Plan 49 GRS Retirement Consulting     In lieu of the benefits described above, a participant’s beneficiary can elect to receive a refund  of the participant’s accumulated contributions with interest. Accumulated contributions, plus  interest, will be refunded for all participants with less than 10 years of Credited Service.    Q. Post Retirement Death     Benefit determined by the form of benefit elected upon retirement.    R. Optional Forms    In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all  retirees are a Single Life Annuity, a 10 Year Certain and Life Annuity, or the 50%, 66 2/3% (for  police officers and firefighters), 75% or 100% Joint and Survivor options. Members may also elect  a partial lump sum equal to 10%, 20%, or 30% of the value of the normal retirement benefit with  the remaining monthly retirement benefit reduced accordingly.    S. Vested Termination     Eligibility: A participant has earned a non‐forfeitable right to Plan benefits after the  completion of 10 years of Credited Service provided employee contributions are  not refunded.      Vesting is determined in accordance with the following table.         Years of Credited  Service  % of Normal  Retirement  Benefits  Less Than 10 10 or more                0%            100%      Benefit: The participant’s accrued Normal Retirement Benefit as of the date of  termination. Benefit begins on the member’s Normal Retirement date.  Alternatively, police officers and firefighters may elect to receive an actuarially  reduced Early Retirement Benefit any time after age 50.       Normal Form       of Benefit: For Non‐Hazardous Duty Employment (Non‐Grandfathered)        A monthly annuity is paid for the life of the participant.       City of Clearwater Employees’ Pension Plan 50 GRS Retirement Consulting     For Hazardous Duty Employment‐Police Officers and Firefighters (and  Grandfathered Non‐Hazardous Duty Employment)    A monthly annuity is paid for the life of the participant. After the participant’s  death, 100% of the Normal Retirement Benefit shall be paid as a survivor annuity  to the spouse for 5 years. After 5 years, such survivor annuity is reduced to 50%  of the original amount. The survivor annuity ceases upon death or remarriage of  the spouse. 120 monthly payments are guaranteed for police officers and  firefighters. Optional forms of benefits are available.    COLA:   For Non‐Hazardous Duty Employment    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is a five‐ year delay (after the retirement date) until this COLA is applied to benefits  accrued after January 1, 2013.         For Hazardous Duty Employment‐Police Officers and Firefighters    1.5% annually commencing on each April 1 for all retirees and beneficiaries who  have received at least 6 monthly benefit payments.  For non‐grandfathered  members (not eligible for normal retirement on January 1, 2013), there is no  COLA for benefits accrued after January 1, 2013.    Plan participants with less than 10 years of Credited Service will receive a refund of their own  accumulated contributions with interest.    T. Refunds    Eligibility:  All participants terminating employment with less than 10 years of Credited  Service are eligible. Optionally, vested members (those with 10 or more years of  credited service) may elect a refund in lieu of the vested benefits otherwise due.                 Benefit: Refund of the member’s contributions with 5% simple interest paid in a single  lump sum.        City of Clearwater Employees’ Pension Plan 51 GRS Retirement Consulting     U. Member Contributions    8% of Compensation for Non‐Hazardous Duty participants.  10% of Compensation for Hazardous Duty participants (8% of Compensation if grandfathered).    V. Employer Contributions    Each plan year, the Employer must contribute a minimum of 7% of the Compensation of all  employees participating in the plan, plus any additional amount determined by the actuary  needed to fund the plan properly according to State laws.    W. Cost of Living Increases    For Non‐Hazardous Duty Employment    1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at  least 6 monthly benefit payments.  For non‐grandfathered members (not eligible for normal  retirement on January 1, 2013), there is a five‐year delay (after the retirement date) until this  COLA is applied to benefits accrued after January 1, 2013.    For Hazardous Duty Employment‐Police Officers and Firefighters    1.5% annually commencing on each April 1 for all retirees and beneficiaries who have received at  least 6 monthly benefit payments.  For non‐grandfathered members (not eligible for normal  retirement on January 1, 2013), there is no COLA for benefits accrued after January 1, 2013.    X.  13th Check      Not Applicable    Y. Deferred Retirement Option Plan    Not Applicable    Z. Other Ancillary Benefits    There are no ancillary retirement type benefits not required by statutes but which might be  deemed a City of Clearwater Employees’ Pension Plan liability if continued beyond the availability  of funding by the current funding source.    AA. Changes from Previous Valuation    There have been no changes from the previous valuation.        BLANK INTENTIONALLY Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4478 Agenda Date: 4/16/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.5 SUBJECT/RECOMMENDATION: Annual review of the Employees’ Pension Plan investment performance for the calendar and plan year ended December 31, 2017. SUMMARY: A presentation of the Plan ’s investment performance is made to the Trustees annually, in addition to quarterly updates. For calendar 2017, the Plan realized an investment return of 15.98%, versus the plan’s assumed rate of 7.00%, and versus a customized benchmark of 15.44%, placing the plan in the 33rd percentile of public pension plans per the Wilshire Public Plan Sponsor Universe. For the last three calendar years period, the plan had an annualized return of 7.87%, versus a benchmark of 7.48%, placing the plan in the 44th percentile of public plans. For the past five years, the plan had an annualized return of 9.89%, versus a benchmark of 9.36%, placing the plan in the 27th percentile of public plans. The Pension Investment Committee continues to seek diversification and decreased volatility in investment returns for the Plan via investment in alternative investment categories. In recent years, new categories introduced have included timber investments, core plus real estate, and infrastructure. During calendar 2017, the Trustees approved termination and replacement of both a small cap value manager and an international emerging markets money manager. Both replacements were completed by year-end. The investment committee, with the assistance of the Plan ’s investment consultant, CapTrust Advisors, closely monitors underperforming money managers and will continue to recommend terminations and replacements when appropriate. APPROPRIATION CODE AND AMOUNT: N/A USE OF RESERVE FUNDS: N/A Page 1 City of Clearwater Printed on 4/11/2018 BLANK INTENTIONALLY City of Clearwater Employees’ Pension PlanApril 16, 2018 Calendar Year 2017 Investment Performance Total Fund 15.98% 33rd percentile Benchmark 15.44% 40th percentile Plus 0.54% Calendar Year 2017 Investment Performance Domestic Equity 22.53% 24th Benchmark 21.83% 31 st Plus 0.70% Calendar Year 2017 Investment Performance International Equity 27.97% 48th Benchmark 27.19% 54th Plus 0.78% Calendar Year 2017 Investment Performance Domestic Fixed Income 3.91% 53rd Benchmark 3.54% 64th Plus 0.37% Calendar Year 2017 Investment Performance Real Estate 6.27% 59th Benchmark 5.75% 60th Plus 0.52% Calendar Year 2017 Investment Performance Three Year Return Total Fund 7.87% 44th Five Year Return Total Fund 9.89% 27th Ten Year Return Total Fund 7.36% 1st Individual Manager Performance Calendar 2017 VOYA LCG 29.94% 53 rd NT Russell1000 LCV 13.77% 87th Eagle Capital LCV 23.52% 2 nd Mann & Nap LCV 21.55% 10th Individual Manager Performance Calendar 2017 Artisan MCG 20.81% 71st Wedge MCV 18.44% 12th Riverbridge SCG 22.97% 26 th Atlanta SCV 13.34% 42nd Individual Manager Performance Calendar 2017 International: TS & W EAFE 22.27% 82 nd WCM EAFE 33.22% 25 th Individual Manager Performance Calendar 2017 Fixed Income: Dodge Cox 3.99% 51st WAMCO 4.08% 49 th Individual Manager Performance Calendar 2017 Real Estate: MEPT Core 5.53% 61st USAA Core Plus 9.30% 32 nd U.S. Real E. Core Plus 8.36% 39 th Molpus Timber 1.27% 82 nd Hancock Timber -0.37% 84th SEC CAP REITS 4.91% 68th Calendar 2017 New Managers Calendar 2017 New Infrastructure Manager •IFM Global Infrastructure, L.P. •Trustees approved January 2016 •Waiting list / queue until Sept 2017 •$30 million commitment invested Calendar 2017 New International Emerging Markets Manager •Dimensional Fund Advisors (DFA) •Mutual Fund •Replaced Eaton Vance •$39.5 million invested Oct 2017 Calendar 2017 New Small Cap Value Manager •Victory Capital Sycamore Small Cap Value •$13.6 million invested November 2017 •Replaced Systematic City of Clearwater Employees’ Pension Plan Questions? City of ClearwaterCity of Clearwater Employees’ Pension Plan Employees’ Pension PlanApril 16, 2018April 16, 2018 Calendar Year 2017 Investment Performance Calendar Year 2017 Investment Performance Total Fund 15.98% 33rd percentile Benchmark 15.44% 40th percentile Plus 0.54% Total Fund 15.98% 33rd percentile Benchmark 15.44% 40th percentile Plus 0.54% Calendar Year 2017 Investment Performance Calendar Year 2017 Investment Performance Domestic Equity 22.53% 24th Benchmark 21.83% 31 st Plus 0.70% Domestic Equity 22.53% 24th Benchmark 21.83% 31 st Plus 0.70% Calendar Year 2017 Investment Performance Calendar Year 2017 Investment Performance International Equity 27.97% 48th Benchmark 27.19% 54 th Plus 0.78% International Equity 27.97% 48th Benchmark 27.19% 54 th Plus 0.78% Calendar Year 2017 Investment Performance Calendar Year 2017 Investment Performance Domestic Fixed Income 3.91% 53rd Benchmark 3.54% 64 th Plus 0.37% Domestic Fixed Income 3.91% 53rd Benchmark 3.54% 64 th Plus 0.37% Calendar Year 2017 Investment Performance Calendar Year 2017 Investment Performance Real Estate 6.27% 59th Benchmark 5.75% 60 th Plus 0.52% Real Estate 6.27% 59th Benchmark 5.75% 60 th Plus 0.52% Calendar Year 2017 Investment Performance Calendar Year 2017 Investment Performance Three Year Return Total Fund 7.87% 44 th Five Year Return Total Fund 9.89% 27 th Ten Year Return Total Fund 7.36% 1 st Three Year Return Total Fund 7.87% 44 th Five Year Return Total Fund 9.89% 27 th Ten Year Return Total Fund 7.36% 1 st Individual Manager Performance Calendar 2017 Individual Manager Performance Calendar 2017 VOYA LCG 29.94% 53 rd NT Russell1000 LCV 13.77% 87 th Eagle Capital LCV 23.52% 2 nd Mann & Nap LCV 21.55% 10 th VOYA LCG 29.94% 53 rd NT Russell1000 LCV 13.77% 87 th Eagle Capital LCV 23.52% 2 nd Mann & Nap LCV 21.55% 10 th Individual Manager Performance Calendar 2017 Individual Manager Performance Calendar 2017 Artisan MCG 20.81% 71 st Wedge MCV 18.44%12th Riverbridge SCG 22.97% 26 th Atlanta SCV 13.34% 42 nd Artisan MCG 20.81% 71 st Wedge MCV 18.44%12th Riverbridge SCG 22.97% 26 th Atlanta SCV 13.34% 42 nd Individual Manager Performance Calendar 2017 Individual Manager Performance Calendar 2017 International: TS & W EAFE 22.27% 82 nd WCM EAFE 33.22% 25 th International: TS & W EAFE 22.27% 82 nd WCM EAFE 33.22% 25 th Individual Manager Performance Calendar 2017 Individual Manager Performance Calendar 2017 Fixed Income: Dodge Cox 3.99% 51 st WAMCO 4.08% 49 th Fixed Income: Dodge Cox 3.99% 51 st WAMCO 4.08% 49 th Individual Manager Performance Calendar 2017 Individual Manager Performance Calendar 2017 Real Estate: MEPT Core 5.53% 61 st USAA Core Plus 9.30% 32 nd U.S. Real E. Core Plus 8.36% 39 th Molpus Timber 1.27% 82 nd Hancock Timber -0.37% 84 th SEC CAP REITS 4.91% 68 th Real Estate: MEPT Core 5.53% 61 st USAA Core Plus 9.30% 32 nd U.S. Real E. Core Plus 8.36% 39 th Molpus Timber 1.27% 82 nd Hancock Timber -0.37% 84 th SEC CAP REITS 4.91% 68 th Calendar 2017 New Managers Calendar 2017 New Managers Calendar 2017Calendar 2017 New Infrastructure Manager •IFM Global Infrastructure, L.P. •Trustees approved January 2016 •Waiting list / queue until Sept 2017 •$30 million commitment invested New Infrastructure Manager •IFM Global Infrastructure, L.P. •Trustees approved January 2016 •Waiting list / queue until Sept 2017 •$30 million commitment invested Calendar 2017Calendar 2017 New International Emerging Markets Manager •Dimensional Fund Advisors (DFA) •Mutual Fund •Replaced Eaton Vance •$39.5 million invested Oct 2017 New International Emerging Markets Manager •Dimensional Fund Advisors (DFA) •Mutual Fund •Replaced Eaton Vance •$39.5 million invested Oct 2017 Calendar 2017Calendar 2017 New Small Cap Value Manager •Victory Capital Sycamore Small Cap Value •$13.6 million invested November 2017 •Replaced Systematic New Small Cap Value Manager •Victory Capital Sycamore Small Cap Value •$13.6 million invested November 2017 •Replaced Systematic City of Clearwater Employees’ Pension Plan City of Clearwater Employees’ Pension Plan Questions?Questions? 102 W. Whiting Street, Suite 400, Tampa, FL 33602-5140 ♦ Tel: 813.218.5000 Eric W. Bailey, CFA John J. Griffith, Jr., JD, CPC, AIF® Principal, Financial Advisor Senior Vice President, Financial Advisor CITY OF CLEARWATER EMPLOYEES’ PENSION PLAN PERFORMANCE REVIEW DECEMBER 31, 2017 TABLE OF CONTENTS Important Disclosures 1 Market Commentary 2 Fund Overview 3 Performance Review Total Fund 4 Domestic Equity 5 International Equity 6 Fixed Income 7 Real Estate 8 Appendix 9 IMPORTANT DISCLOSURES This report has been compiled from sources believed to be reliable but are not guaranteed to be accurate or complete. This material has been prepared solely for information purposes and is not a solicitation. Performance reports contain returns that are net of fees. Any depiction of account value/performance is not warranted to be accurate or complete. Please refer to your official monthly/quarterly custodial statements for verification. Past performance does not guarantee future results. CAPTRUST Financial Advisors does not render legal, accounting, or tax advice. Please contact your CAPTRUST Financial Advisor if your Investment Objectives or your personal or financial situation has changed or if you want to place reasonable restrictions on the management of your investment account(s) or portfolio. You may call direct at 919.870.6822 or 800.216.0645 or email compliance@captrustadvisors.com. Prior to January 1st 2016, manager returns were reported both gross and net of fees depending on custody arrangements and past practices. Effective January 1st 2016, prospectively, all manager returns will be reported net of fees. 1 market commentary • • • • • 3 • • • • • • • • • • • • • • • market commentary 4 market commentary 5 market commentary 6 market commentary 7 market commentary • • • • 8 market commentary 9 market commentary 10 market commentary 11 market commentary • • • 12 market commentary 13 market commentary 14 market commentary 15 market commentary 16 asset class returns Source: Markov Processes, Inc., Bloomberg, Mobius 17 index performance 18 City of Clearwater Employees Pension Fund Asset Allocation vs Target & Policy Total Fund As of 12/31/17 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 Sycamore Small Cap Value Total Domestic Equity Eaton Vance Mgmt WCM Investment Management Thompson, Siegel & Walmsley DFA Emerging Markets 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 Fund III Hancock USAA U.S. Real Estate Investment Fund IFM Global Infrastructure (US) L.P. Molpus Woodlands Fund IV Total Real Estate Total Fund 141,153,390.26 48,014,080.58 49,719,350.68 43,958,825.84 39,456,269.13 41,753,185.68 14,218,075.41 1,236.79 29,032,875.64 13,845,731.32 421,153,021.33 2,525.77 75,912,565.09 74,908,207.14 41,313,193.61 192,136,491.61 129,519,556.61 130,069,605.74 837,947.76 -897,502.91 259,529,607.20 46,500,369.86 20,663,063.79 7,693,509.00 8,203,932.00 11,456,069.54 11,905,993.00 31,973,181.00 4,202,905.00 142,599,023.19 1,015,418,143.33 13.90 4.73 4.90 4.33 3.89 4.11 1.40 0.00 2.86 1.36 41.48 0.00 7.48 7.38 4.07 18.92 12.76 12.81 0.08 -0.09 25.56 4.58 2.03 0.76 0.81 1.13 1.17 3.15 0.41 14.04 100.00 39.00 18.00 28.00 15.00 19 City of Clearwater Employees Pension Fund Sources of Fund Growth Total Fund 9/30/17 - 12/31/17 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 Sycamore Small Cap Value Equity Eaton Vance Mgmt WCM Investment Management Thompson, Siegel & Walmsley DFA Emerging Markets 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 Fund III Hancock USAA U.S. Real Estate Investment Fund IFM Global Infrastructure (US) L.P. Molpus Woodlands Fund IV Real Estate Comp Total Fund 130,556,700 45,575,552 46,024,305 40,954,105 38,146,073 39,542,304 13,510,901 13,294,221 27,962,491 0 395,566,651 38,874,305 72,409,672 71,932,148 0 183,216,125 128,839,081 129,209,556 706,642 4,132,118 262,887,397 45,856,597 19,969,058 7,693,509 8,267,085 11,165,668 11,634,617 30,000,000 4,233,094 138,819,628 980,489,801 136,717 4,558 96,233 55,344 78,198 63,277 28,251 -13,597,063 64,711 13,620,300 550,525 -39,470,000 122,579 127,196 39,469,838 249,612 65,835 84,463 127,411 -5,029,621 -4,751,912 0 33,898 0 -63,153 -122,600 0 0 -30,189 -182,044 -4,133,819 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 0 0 0 0 0 0 10,459,973 2,433,971 3,598,814 2,949,377 1,231,998 2,147,605 678,924 304,078 1,005,674 225,432 25,035,845 598,221 3,380,315 2,848,863 1,843,356 8,670,755 614,641 775,587 3,895 0 1,394,122 643,773 660,107 0 0 413,002 271,376 1,973,181 0 3,961,439 39,062,161 141,153,390 48,014,081 49,719,351 43,958,826 39,456,269 41,753,186 14,218,075 1,237 29,032,876 13,845,731 421,153,021 2,526 75,912,565 74,908,207 41,313,194 192,136,492 129,519,557 130,069,606 837,948 -897,503 259,529,607 46,500,370 20,663,064 7,693,509 8,203,932 11,456,070 11,905,993 31,973,181 4,202,905 142,599,023 1,015,418,143 20 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending December 31, 2017 Net of Fee Return Name Value $(000) Periods Ending 12/31/17 Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Since Inception Ret Date Total Fund Policy Index Secondary Benchmark 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 Sycamore Small Cap Value Russell 2000 Value Systematic Financial Mgt R2000V International EQ Comp MSCI ACWI ex US (Net) DFA Emerging Markets MSCI Emg Mkts (Gross) Eaton Vance Mgmt MSCI Emg Mkts Thompson, Siegel & Walmsley MSCI EAFE (Net) 1,015,418 421,153 282,846 49,719 43,959 48,014 141,153 81,209 39,456 41,753 57,098 14,218 29,033 13,846 1 192,136 41,313 3 74,908 4.00 3.99 3.65 6.33 6.64 7.39 6.59 7.82 5.33 7.20 5.33 5.34 5.33 8.01 7.86 4.35 6.07 3.23 6.81 5.43 5.50 4.04 3.34 5.03 3.34 3.60 4.59 4.79 5.00 15.98 15.44 14.50 22.53 21.83 24.63 21.69 23.52 13.66 21.55 13.66 13.77 13.66 29.94 30.21 19.76 18.52 20.81 25.27 18.44 13.34 16.66 14.65 13.34 14.65 22.97 22.17 27.97 27.19 7.87 7.48 7.52 10.88 11.41 11.93 11.23 11.67 8.65 11.40 8.65 8.65 8.65 13.20 13.79 8.05 9.58 7.47 10.30 8.52 9.00 10.69 9.96 11.98 9.96 10.50 10.28 5.82 8.35 9.89 9.36 15.44 15.79 16.04 15.71 14.13 14.04 16.91 17.33 14.46 14.96 13.07 15.31 15.62 14.68 14.18 14.12 15.66 13.97 14.17 15.21 4.29 8.42 8.92 8.78 13.47 13.76 13.59 13.67 12.42 12.46 15.10 14.81 13.29 12.76 12.17 12.79 14.22 12.76 12.84 11.62 14.42 11.52 13.21 12.33 3.03 6.55 7.36 6.46 9.33 8.50 8.69 8.59 7.15 7.10 10.05 10.00 10.00 9.11 9.91 9.10 10.93 9.10 9.45 8.71 12.68 8.63 1.84 2.44 8.54 8.86 11.08 9.92 10.36 10.18 11.69 10.70 12.06 12.07 12.66 11.96 7.51 8.61 9.28 9.37 11.44 10.70 10.77 10.69 15.44 12.84 13.26 12.84 6.18 6.12 12.01 10.44 12.53 11.84 9.91 8.62 9.76 7.86 10.25 9.63 12.70 9.67 15.11 14.35 -0.61 -0.95 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 11/30/17 11/30/17 8/31/03 5/31/01 5/31/01 10/31/17 10/31/17 4/30/08 4/30/08 7/31/15 7/31/15 12/31/87 12/31/87 12/31/15 3.96 4.23 22.27 25.03 5.24 5.86 4.39 3.85 5.54 6.44 21 City of Clearwater Employees Pension Fund Executive Summary Table Periods Ending December 31, 2017 Net of Fee Return Name Value $(000) Periods Ending 12/31/17 Cur Qtr 1 Year 3 Yrs 5 Yrs 7 Yrs 10 Yrs 15 Yrs Since Inception Ret Date WCM Investment Management MSCI ACWI ex US (Net) Fixed Income Comp BC Agg 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 IFM Global Infrastructure (US) L.P. MSCI World (Net) Molpus Woodlands Fund III NCREIF Timberland Index Molpus Woodlands Fund IV NCREIF Timberland Index Multi Employer Property Trust NCREIF ODCE Security Capital Wilshire RESI U.S. Real Estate Investment Fund NCREIF ODCE Fund Index USAA NCREIF ODCE Fund Index 75,913 259,530 129,520 -898 838 130,070 142,599 8,204 31,973 7,694 4,203 46,500 20,663 11,906 11,456 4.67 5.00 0.54 0.39 0.48 0.39 0.00 0.28 0.51 0.28 0.60 0.39 2.86 1.84 0.00 1.52 6.58 5.50 0.00 1.52 0.00 1.52 1.40 2.07 3.31 1.72 2.33 2.07 3.74 2.07 33.22 27.19 3.91 3.54 3.99 3.54 0.00 0.84 1.44 0.84 4.08 3.54 6.27 5.75 -0.37 3.63 1.43 3.63 1.10 3.63 5.53 7.62 4.91 4.84 8.36 7.62 9.30 7.62 3.05 2.24 3.12 2.24 0.01 0.38 2.23 0.38 2.81 2.24 6.72 7.37 2.24 3.72 2.92 3.72 8.49 10.42 5.11 5.75 2.90 2.10 3.19 2.10 0.00 0.24 3.25 0.24 2.48 2.10 9.49 10.45 4.01 6.23 6.08 6.23 9.89 11.53 9.45 9.70 3.84 3.20 4.11 3.20 -0.00 0.20 3.71 0.20 3.52 3.20 9.71 11.31 9.57 12.07 10.01 10.63 4.88 4.01 5.17 4.01 -0.00 0.34 6.57 0.34 4.47 4.01 4.67 4.15 -0.00 1.21 11.08 8.15 6.26 6.36 4.88 4.06 0.61 3.17 5.54 1.21 4.50 4.13 6.02 6.92 4.97 6.91 6.58 5.50 4.44 5.99 1.33 3.60 9.92 12.38 6.33 6.74 9.53 8.19 10.37 9.48 7/31/15 7/31/15 12/31/87 12/31/87 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 9/30/17 9/30/17 6/30/11 6/30/11 9/30/15 9/30/15 9/30/10 9/30/10 4/30/08 4/30/08 12/31/15 12/31/15 6/30/15 6/30/15 22 City of Clearwater Employees Pension Fund Executive Summary Table December 31, 2017 Net of Fee Return Name Value $(000) Calendar Years 2017 2016 2015 2014 2013 2012 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 Sycamore Small Cap Value Russell 2000 Value Systematic Financial Mgt R2000V International EQ Comp MSCI ACWI ex US (Net) DFA Emerging Markets MSCI Emg Mkts (Gross) Eaton Vance Mgmt MSCI Emg Mkts Thompson, Siegel & Walmsley MSCI EAFE (Net) 1,015,418 421,153 282,846 49,719 43,959 48,014 141,153 81,209 39,456 41,753 57,098 14,218 29,033 13,846 1 192,136 41,313 3 74,908 15.98 15.44 22.53 21.83 24.63 21.69 23.52 13.66 21.55 13.66 13.77 13.66 29.94 30.21 19.76 18.52 20.81 25.27 18.44 13.34 16.66 14.65 13.34 14.65 22.97 22.17 27.97 27.19 6.71 7.32 9.61 11.96 8.88 12.05 10.16 17.34 13.85 17.34 17.03 17.34 4.26 7.08 6.73 13.80 -0.63 7.33 14.46 20.00 18.26 21.31 18.02 21.31 13.29 11.32 2.78 4.50 1.00 1.43 0.22 1.48 1.38 3.35 0.92 2.35 -3.83 -0.09 -3.83 -3.66 -3.83 7.07 5.67 -1.30 -2.44 3.38 -0.20 -5.72 -4.78 -1.70 -4.41 4.97 -4.41 -3.15 -1.38 -9.91 -4.29 8.32 9.91 11.31 13.69 13.45 13.25 13.39 13.45 10.46 13.45 13.54 13.45 14.42 13.05 13.38 13.21 6.96 11.91 19.82 14.74 0.39 4.89 3.50 4.89 0.20 5.60 -5.56 -4.48 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 10.23 23.29 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 17.61 17.90 22.27 25.03 -0.19 23 City of Clearwater Employees Pension Fund Executive Summary Table December 31, 2017 Net of Fee Return Name Value $(000) Calendar Years 2017 2016 2015 2014 2013 2012 WCM Investment Management MSCI ACWI ex US (Net) Fixed Income Comp BC Agg 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 IFM Global Infrastructure (US) L.P. MSCI World (Net) Molpus Woodlands Fund III NCREIF Timberland Index Molpus Woodlands Fund IV NCREIF Timberland Index Multi Employer Property Trust NCREIF ODCE Security Capital Wilshire RESI U.S. Real Estate Investment Fund NCREIF ODCE Fund Index USAA NCREIF ODCE Fund Index 75,913 259,530 129,520 -898 838 130,070 142,599 8,204 31,973 7,694 4,203 46,500 20,663 11,906 11,456 33.22 27.19 3.91 3.54 3.99 3.54 0.00 0.84 1.44 0.84 4.08 3.54 6.27 5.75 -0.37 3.63 1.43 3.63 1.10 3.63 5.53 7.62 4.91 4.84 8.36 7.62 9.30 7.62 -1.00 4.50 5.01 2.65 5.55 2.65 0.00 0.27 1.84 0.27 3.66 2.65 6.94 8.06 2.64 2.59 3.30 2.59 3.34 2.59 8.02 8.76 5.71 7.62 10.72 8.76 12.34 8.76 0.30 0.55 -0.12 0.55 0.03 0.03 3.41 0.03 0.73 0.55 6.96 8.33 4.51 4.97 4.03 4.97 12.00 15.01 4.70 4.81 6.18 5.97 6.01 5.97 -0.02 0.03 7.12 0.03 6.65 5.97 21.77 25.22 4.58 10.50 7.02 10.50 12.21 12.49 33.13 31.53 -0.75 -2.02 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 6.53 4.22 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 24 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Total Fund Public Sponsors Periods Ending 12/17 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 4.62 4.10 3.73 3.34 1.78 4.00 34 3.99 34 18.60 16.39 14.88 13.42 8.56 15.98 33 15.44 40 13.53 12.30 11.63 10.78 7.56 11.25 65 11.31 64 9.15 8.20 7.75 6.74 4.57 7.87 44 7.48 62 8.62 7.89 7.43 6.59 4.82 7.99 21 8.08 18 10.82 9.91 9.08 8.23 4.88 9.89 27 9.36 42 11.04 10.43 9.69 9.04 5.56 10.55 19 9.99 35 9.68 8.95 8.31 7.67 5.30 8.92 26 8.78 32 10.09 9.53 8.93 8.12 5.89 9.99 7 9.41 30 11.70 10.65 10.15 9.57 5.53 12.08 1 11.14 11 7.13 6.60 5.99 5.55 3.74 7.36 1 6.46 28 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% T1 T1 T1 T1 T1 T1 T1 T1 T1 T 1 T 1 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 18.60 16.39 14.88 13.42 8.56 15.98 33 15.44 40 10.87 9.02 7.79 6.83 4.09 6.71 76 7.32 63 3.55 1.36 0.24 -1.04 -2.77 1.43 22 0.22 51 9.32 7.29 6.48 5.32 3.61 8.32 11 9.91 2 21.89 19.20 16.36 13.23 6.00 17.83 38 14.62 65 15.04 13.39 12.37 10.79 6.54 13.93 16 13.17 28 5.40 2.17 0.97 -0.36 -2.84 -0.36 75 1.81 32 16.23 13.95 12.62 10.97 5.64 17.73 2 13.96 24 27.53 21.96 19.14 15.35 4.37 30.28 1 26.00 6 -1.30 -20.34 -24.63 -27.10 -30.44 -27.10 75 -27.73 80 -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% T1 T1 T1 T1 T 1 T1 T1 T 1 T 1 T1 26 City of Clearwater Employees Pension Fund Performance Summary Total Fund December 31, 2017 -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 Incept 12/31/87 Total Fund Policy Index Net of Fee Returns Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur 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 4.00 3.99 34 8.01 7.86 9 5.34 5.33 78 7.82 5.33 10 7.20 5.33 35 3.23 6.81 99 5.43 5.50 15.98 15.44 33 29.94 30.21 53 13.77 13.66 87 23.52 13.66 2 21.55 13.66 10 20.81 25.27 71 18.44 13.34 15.98 15.44 33 29.94 30.21 53 13.77 13.66 87 23.52 13.66 2 21.55 13.66 10 20.81 25.27 71 18.44 13.34 7.87 7.48 44 13.20 13.79 37 8.65 8.65 82 11.67 8.65 2 11.40 8.65 10 7.47 10.30 93 8.52 9.00 9.89 9.36 27 16.91 17.33 46 14.13 14.04 62 13.07 15.31 89 15.62 14.68 9.28 9.37 12.01 10.44 6.18 6.12 15.44 12.84 13.26 12.84 9.91 8.62 9.76 7.86 12/31/87 12/31/87 6/30/07 1/31/13 1/31/13 7/31/01 2/28/07 $1,015,418,143 $141,153,390 $48,014,081 $49,719,351 $43,958,826 $39,456,269 $41,753,186 27 City of Clearwater Employees Pension Fund Performance Summary Total Fund December 31, 2017 5.03 3.34 28 3.60 4.59 69 4.67 5.00 58 3.96 4.23 75 0.48 0.39 49 0.60 0.39 39 0.51 0.28 13.34 14.65 42 22.97 22.17 26 33.22 27.19 25 22.27 25.03 82 3.99 3.54 51 4.08 3.54 49 1.44 0.84 13.34 14.65 42 22.97 22.17 26 33.22 27.19 25 22.27 25.03 82 3.99 3.54 51 4.08 3.54 49 1.44 0.84 11.98 9.96 17 10.50 10.28 60 3.12 2.24 44 2.81 2.24 49 2.23 0.38 15.66 13.97 18 14.17 15.21 80 3.19 2.10 38 2.48 2.10 52 3.25 0.24 12.70 9.67 15.11 14.35 -0.61 -0.95 11.08 8.15 5.54 6.44 4.39 3.85 4.88 4.06 4.50 4.13 5.54 1.21 8/31/03 8/31/03 9/30/10 11/30/17 4/30/08 7/31/15 7/31/15 10/31/17 2/29/04 9/30/04 6/30/03 $14,218,075 $1,237 $29,032,876 $13,845,731 $2,526 $75,912,565 $74,908,207 $41,313,194 $129,519,557 $130,069,606 $837,948 Net of Fee Returns Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets Atlanta Capital Mgmt Russell 2000 Rank Systematic Financial Mgt R2000V Riverbridge Partners R2000G Rank Sycamore Small Cap Value Russell 2000 Value Eaton Vance Mgmt MSCI Emg Mkts Rank WCM Investment Management MSCI ACWI ex US (Net) Rank Thompson, Siegel & Walmsley MSCI EAFE (Net) Rank DFA Emerging Markets MSCI Emg Mkts (Gross) Dodge & Cox BC Agg Rank Western Asset Management Co. BC Agg Rank Security Lending Income Account 3-month T-Bill 28 City of Clearwater Employees Pension Fund Performance Summary Total Fund December 31, 2017 Net of Fee Returns Cur Qtr YTD 1 Year 3 Yrs 5 Yrs Incept Incept Date Cur Assets In House Account 3-month T-Bill Multi Employer Property Trust NCREIF ODCE Rank Security Capital Wilshire RESI Rank Molpus Woodlands Fund III NCREIF Timberland Index Rank Hancock NCREIF Timberland Index Rank USAA NCREIF ODCE Fund Index Rank U.S. Real Estate Investment Fund NCREIF ODCE Fund Index Rank IFM Global Infrastructure (US) L.P. MSCI World (Net) Rank Molpus Woodlands Fund IV NCREIF Timberland Index Rank 0.00 0.28 1.40 2.07 63 3.31 1.72 30 0.00 1.52 80 0.00 1.52 80 3.74 2.07 24 2.33 2.07 36 6.58 5.50 9 0.00 1.52 80 0.00 0.84 5.53 7.62 61 4.91 4.84 68 1.43 3.63 82 -0.37 3.63 84 9.30 7.62 32 8.36 7.62 39 1.10 3.63 82 0.00 0.84 5.53 7.62 61 4.91 4.84 68 1.43 3.63 82 -0.37 3.63 84 9.30 7.62 32 8.36 7.62 39 1.10 3.63 82 0.01 0.38 8.49 10.42 45 5.11 5.75 71 2.92 3.72 78 2.24 3.72 78 0.00 0.24 9.89 11.53 51 9.45 9.70 52 6.08 6.23 75 4.01 6.23 80 0.61 3.17 9.92 12.38 6.33 6.74 4.44 5.99 4.97 6.91 10.37 9.48 9.53 8.19 6.58 5.50 1.33 3.60 12/31/87 9/30/10 4/30/08 6/30/11 5/31/12 6/30/15 12/31/15 9/30/17 9/30/15 $-897,503 $46,500,370 $20,663,064 $7,693,509 $8,203,932 $11,456,070 $11,905,993 $31,973,181 $4,202,905 29 30 City of Clearwater Employees Pension Fund Domestic Equity Comp as of 12/31/17 Microsoft Corp Apple Inc Amazon Com Inc Unitedhealth Group I Home Depot Inc Johnson & Johnson Marriott Intl Inc Ne Alphabet Inc Cl-A Pepsico Inc Texas Instrs Inc GICS Sector % Port Information Technology Information Technology Consumer Discretionary Health Care Consumer Discretionary Health Care Consumer Discretionary Information Technology Consumer Staples Information Technology 3.68 2.33 2.19 1.87 1.62 1.38 1.33 1.27 1.22 1.21 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 2.62 3.57 14.26 16.68 5.76 13.19 13.40 28.31 1.22 0.99 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Domestic Equity Comp S&P 500 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/87 Domestic Equity Comp S&P 500 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 6.33 6.64 395,567 551 25,036 421,153 22.53 21.83 363,349 -21,363 79,166 421,153 22.53 21.83 363,349 -21,363 79,166 421,153 10.88 11.41 411,957 -109,873 119,069 421,153 15.44 15.79 329,339 -186,055 277,869 421,153 9.33 8.50 298,670 -200,735 323,219 421,153 11.44 10.70 32,236 -200,735 589,652 421,153 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 12/31/17 Cash & Equiv $8,921 2.12% Domestic Equity $412,232 97.88% Periods from 12/87 to 12/17 Alpha Beta R-Squared 0.07 1.08 0.93 Annualized Return% 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 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 11.44 10.70 3.29 16.72 14.91 1.31 0.49 0.50 0.00 0.19 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 12/17 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 8.06 6.71 6.24 4.07 0.82 6.33 46 6.64 32 32.92 22.28 20.59 14.71 6.34 22.53 24 21.83 31 20.86 18.04 16.84 15.59 8.20 15.89 72 16.79 55 14.24 11.49 11.08 9.78 5.80 10.88 56 11.41 31 13.68 11.97 10.91 9.02 5.18 10.98 49 11.98 24 18.51 16.28 15.61 14.20 7.96 15.44 55 15.79 39 18.41 16.50 15.76 14.81 9.17 15.93 35 15.83 45 15.69 14.10 13.62 12.39 9.01 13.47 54 13.76 40 16.99 15.06 14.01 13.58 10.23 14.56 33 13.92 60 19.73 17.12 15.62 15.08 11.87 16.40 37 15.25 67 12.40 10.41 8.92 8.39 5.55 9.33 43 8.50 71 0% 5% 10% 15% 20% 25% 30% 35% E1 E1 E1 E1 E1 E1 E1 E1 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 32.92 22.28 20.59 14.71 6.34 22.53 24 21.83 31 28.00 17.41 11.95 6.79 -2.37 9.61 64 11.96 49 8.02 1.70 -0.84 -4.03 -12.63 1.48 27 1.38 29 15.93 12.90 9.06 4.26 -5.46 11.31 37 13.69 14 45.10 37.74 33.12 28.21 0.04 35.15 37 32.41 57 22.64 17.90 15.82 12.08 2.17 18.37 20 15.98 47 8.21 2.24 -0.12 -4.11 -11.90 -0.21 50 2.12 27 32.63 25.14 17.08 13.89 5.47 22.53 32 15.05 66 53.98 37.01 28.99 24.25 9.06 32.14 39 26.45 65 -18.30 -33.42 -36.98 -40.88 -48.88 -37.76 57 -36.99 50 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% E1 E1 E1 E1 E1 E1 E1 E 1 E 1 E1 34 City of Clearwater Employees Pension Fund Risk Measure Summary Domestic Equity Comp Quarterly Periods Ending 12/31/17 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 1.03 0.50 3.81 6.63 22.53 22.53 2.93 0.98 0.26 0.94 7.39 22.17 1.55 0.38 0 4 3.09 6.64 21.83 21.83 3.21 6.53 2 10 0.98 1.08 0.42 -6.95 6.63 -2.07 22.53 7.54 0.99 -0.08 0.91 1.39 10.62 2.27 -0.22 1 11 -6.44 7.04 1.38 21.83 7.28 1.51 3 17 0.99 1.08 0.40 -6.95 11.42 -2.07 35.15 8.08 1.02 -0.13 0.89 1.88 14.94 2.69 -0.11 1 19 -6.44 10.61 -0.61 32.41 7.49 2.07 35 85 1.07 1.05 0.53 -23.59 22.08 -37.76 55.86 16.72 1.08 0.07 0.93 0.49 7.52 4.47 0.19 30 90 -21.93 21.32 -38.07 49.75 14.91 0.50 35 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios Annualized Rate of Return3.0 4.2 5.4 6.6 7.8 9.0 10.2 11.4 12.6 13.8 15.0 2.0 3.8 5.6 7.4 9.2 11.0 12.8 14.6 16.4 18.1 19.9 ES MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank E Domestic Equity Comp S Standard & Poors 500 Median 10.88 56 7.54 31 11.41 31 7.28 15 11.08 8.84 Annualized Rate of Return3.0 4.3 5.6 6.9 8.2 9.5 10.8 12.1 13.4 14.7 16.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 ES MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank E Domestic Equity Comp S Standard & Poors 500 Median 15.44 55 8.08 32 15.79 39 7.49 11 15.61 9.34 36 City of Clearwater Employees Pension Fund Large Cap Equity Comp as of 12/31/17 Microsoft Corp Apple Inc Amazon Com Inc Unitedhealth Group I Home Depot Inc Johnson & Johnson Marriott Intl Inc Ne Alphabet Inc Cl-A Pepsico Inc Texas Instrs Inc GICS Sector % Port Information Technology Information Technology Consumer Discretionary Health Care Consumer Discretionary Health Care Consumer Discretionary Information Technology Consumer Staples Information Technology 5.61 3.55 3.33 2.84 2.46 2.10 2.02 1.93 1.85 1.84 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 1.35 3.29 11.72 18.87 7.21 12.84 11.67 31.19 1.86 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 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 7.39 6.59 263,111 293 19,442 282,846 24.63 21.69 235,980 -9,907 56,773 282,846 24.63 21.69 235,980 -9,907 56,773 282,846 11.93 11.23 248,436 -50,481 84,890 282,846 16.04 15.71 192,294 -88,646 179,197 282,846 8.69 8.59 130,607 -53,308 205,547 282,846 10.77 10.69 18,032 -53,308 318,121 282,846 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 12/31/17 Cash & Equiv $4,210 1.49% Domestic Equity $278,636 98.51% Periods from 3/88 to 12/17 Alpha Beta R-Squared 0.06 0.98 0.96 Annualized Return% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 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 10.77 10.69 3.26 15.36 15.33 1.31 0.49 0.48 0.00 0.01 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 38 City of Clearwater Employees Pension Fund Large Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 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 7.83 6.84 6.64 6.51 5.15 7.39 10 6.59 67 24.51 22.24 21.79 21.15 16.50 24.63 4 21.69 62 20.33 17.49 16.83 16.71 15.53 16.49 82 16.77 63 12.86 11.49 11.39 11.21 9.45 11.93 15 11.23 71 13.01 12.15 11.97 11.71 10.52 12.31 19 11.73 73 17.39 16.29 15.83 15.71 14.90 16.04 32 15.71 75 17.93 16.61 15.88 15.76 14.96 16.20 31 15.83 61 15.61 14.23 13.81 13.68 12.72 13.59 81 13.67 76 15.79 14.38 13.98 13.90 12.93 13.99 45 13.97 55 17.53 16.08 15.40 15.24 14.21 15.13 85 15.49 42 11.03 9.36 8.58 8.49 7.47 8.69 39 8.59 46 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% L 1 L 1 L1 L1 L1 L1 L1 L1 L1 L1 L1 39 City of Clearwater Employees Pension Fund Large Neutral Consecutive Performance Comparisons Total Returns of Equity Portfolios Years Ending December High 1st Qt Median 3rd Qt Low L Large Cap Equity Comp Net Ret Rank 1 R1000 Net Ret Rank 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 24.51 22.24 21.79 21.15 16.50 24.63 4 21.69 62 20.74 13.04 12.00 11.39 9.58 8.88 95 12.05 42 3.61 1.47 0.98 -0.37 -4.00 3.35 6 0.92 52 16.14 13.75 13.34 11.84 9.64 13.45 49 13.25 52 39.75 35.63 33.01 32.36 28.81 32.23 83 33.11 45 22.11 17.04 16.07 15.36 10.30 17.02 26 16.42 37 5.80 2.30 1.99 0.71 -2.87 -0.90 88 1.51 58 17.95 15.89 15.12 14.14 12.43 16.87 11 16.10 21 38.59 30.24 26.87 25.87 22.05 24.59 87 28.42 34 -28.61 -34.49 -36.60 -37.57 -43.15 -35.23 27 -37.60 75 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% L1 L1 L1 L1 L1 L1 L1 L1 L 1 L1 40 City of Clearwater Employees Pension Fund Risk Measure Summary Large Cap Equity Comp Quarterly Periods Ending 12/31/17 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 0.75 3.61 7.39 24.63 24.63 3.84 1.15 -0.07 0.99 6.18 20.76 1.02 2.50 0 4 3.06 6.59 21.69 21.69 3.18 6.54 2 10 1.04 0.92 0.67 -6.25 7.43 0.56 24.63 7.81 1.04 0.06 0.95 1.47 11.07 1.74 0.38 1 11 -6.83 6.59 0.50 21.69 7.34 1.47 2 18 1.01 0.92 0.55 -6.25 10.65 0.56 32.23 7.75 1.00 0.08 0.96 2.03 15.81 1.55 0.19 1 19 -6.83 10.96 -0.61 33.11 7.62 2.03 34 85 0.99 0.98 0.52 -20.96 20.12 -37.57 49.31 15.36 0.98 0.06 0.96 0.49 7.65 2.92 0.01 29 90 -22.48 21.88 -38.26 51.57 15.33 0.48 41 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Neutral Portfolios Annualized Rate of Return3.0 3.9 4.8 5.7 6.6 7.5 8.4 9.3 10.2 11.1 12.0 7.0 7.9 8.8 9.7 10.5 11.4 12.3 13.2 14.1 15.0 15.9 L 1Median RiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 1 R1000 Median 11.93 15 7.81 67 11.23 71 7.34 46 11.39 7.41 Annualized Rate of Return5.0 5.55 6.1 6.65 7.2 7.75 8.3 8.85 9.4 9.95 10.5 11.0 11.9 12.7 13.6 14.5 15.4 16.3 17.2 18.1 19.0 19.9 L1Median RiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank L Large Cap Equity Comp 1 R1000 Median 16.04 32 7.75 54 15.71 75 7.62 45 15.83 7.74 42 City of Clearwater Employees Pension Fund Voya Investment Mgmt as of 12/31/17 Microsoft Corp Apple Inc Amazon Com Inc Unitedhealth Group I Home Depot Inc Comcast Corp New Facebook Inc Alphabet Inc Cl-A Texas Instrs Inc Johnson & Johnson GICS Sector % Port Information Technology Information Technology Consumer Discretionary Health Care Consumer Discretionary Consumer Discretionary Information Technology Information Technology Information Technology Health Care 6.38 5.84 3.60 3.09 3.09 2.96 2.94 2.64 2.53 2.22 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.81 3.31 13.04 18.47 6.74 12.95 4.08 38.11 2.49 0.00 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 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 8.01 7.86 130,557 137 10,460 141,153 29.94 30.21 117,870 -10,484 33,767 141,153 29.94 30.21 117,870 -10,484 33,767 141,153 13.20 13.79 126,203 -32,008 46,959 141,153 16.91 17.33 96,396 -50,015 94,773 141,153 10.05 10.00 63,462 -39,633 117,324 141,153 12.01 10.44 17,469 -39,633 163,317 141,153 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 43 City of Clearwater Employees Pension Fund Voya Investment Mgmt as of 12/31/17 Cash & Equiv $1,104 0.78% Domestic Equity $140,049 99.22% Periods from 12/87 to 12/17 Alpha Beta R-Squared 0.59 0.85 0.93 Annualized Return% 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 12.0 13.0 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 12.01 10.44 3.29 15.46 17.46 1.31 0.56 0.41 0.00 0.20 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 12/17 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 8.16 7.60 6.94 5.25 4.07 8.01 9 7.86 13 37.82 35.36 30.15 26.47 20.76 29.94 53 30.21 46 19.76 18.14 17.01 14.98 11.07 16.40 55 18.08 25 15.98 13.74 12.43 11.00 9.40 13.20 37 13.79 19 14.51 13.67 11.83 10.31 9.24 13.51 32 13.60 26 19.62 17.71 16.74 15.55 12.22 16.91 46 17.33 34 20.15 17.67 16.82 15.97 12.69 17.25 31 16.98 43 16.90 15.17 14.53 13.39 11.56 15.10 33 14.81 38 16.82 15.92 15.07 14.31 12.12 15.35 41 15.05 50 21.75 18.54 17.66 16.17 14.46 16.33 68 17.32 50 12.25 11.16 10.40 9.45 8.51 10.05 56 10.00 62 0% 5% 10% 15% 20% 25% 30% 35% 40% i1 i1 i 1 i1 i1 i1 i1 i1 i1 i1 i1 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 37.82 35.36 30.15 26.47 20.76 29.94 53 30.21 46 12.29 9.11 5.66 1.92 -6.48 4.26 60 7.08 38 11.06 7.17 3.78 0.79 -5.18 7.07 27 5.67 40 18.00 13.80 12.52 9.77 6.16 14.42 18 13.05 44 47.24 38.67 35.82 33.47 26.66 31.57 82 33.49 73 24.74 19.32 16.79 14.28 9.72 18.95 30 15.26 61 8.00 3.88 0.07 -4.08 -13.94 3.04 30 2.63 34 27.41 22.58 17.20 14.41 10.41 17.10 54 16.72 58 58.87 42.29 34.07 25.97 18.86 24.43 79 37.21 36 -28.63 -36.17 -38.07 -42.01 -48.27 -33.18 11 -38.43 53 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% i1 i1 i1 i1 i1 i1 i1 i1 i 1 i 1 46 City of Clearwater Employees Pension Fund December 31, 2017 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 Mar 15 Dec 17 Dec 14 Sep 17 Sep 14 Jun 17 Jun 14 Mar 17 Mar 14 Dec 16 16.36 13.54 12.00 10.03 7.94 13.20 29 13.79 18 14.76 12.18 11.21 9.72 7.31 12.27 24 12.69 18 14.05 10.89 10.03 8.45 5.85 11.31 18 11.11 21 12.19 11.09 9.66 8.15 6.11 11.80 11 11.27 21 10.15 8.68 7.83 6.26 4.22 8.50 35 8.55 31 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% i 1 i 1 i 1 i 1 i 1 Voya Investment Mgmt Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% -0.4 -0.9 0.2 -0.3 -1.1 0.8 1.0 0.6 0.5 -0.2 -0.1 1.2 -1.9 -0.2 0.5 -1.1 0.4 -0.1 -0.7 0.1 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 12/31/17 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 0.99 0.50 4.54 9.39 29.94 29.94 4.59 1.03 -0.27 0.99 6.33 28.16 1.00 -0.20 0 4 4.67 8.91 30.21 30.21 3.82 7.69 4 8 0.96 1.02 0.42 -5.39 9.39 1.42 29.94 9.00 1.09 -0.40 0.97 1.42 11.76 1.64 -0.29 1 11 -5.29 8.91 2.52 30.21 8.13 1.65 5 15 0.98 1.02 0.45 -5.39 10.10 1.42 31.57 8.50 1.06 -0.31 0.97 1.96 15.75 1.59 -0.21 1 19 -5.29 10.44 2.52 33.49 7.89 2.16 35 85 0.96 0.80 0.53 -18.51 23.26 -33.74 44.38 15.46 0.85 0.59 0.93 0.56 10.26 4.94 0.20 34 86 -22.79 26.75 -45.64 49.75 17.46 0.41 48 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Growth Portfolios Annualized Rate of Return2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 8.0 8.9 9.7 10.6 11.5 12.4 13.3 14.2 15.1 16.0 16.9 i 1 MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i Voya Investment Mgmt 1 R1000G Median 13.20 37 9.00 44 13.79 19 8.13 21 12.43 9.78 Annualized Rate of Return2.0 3.5 5.0 6.5 8.0 9.5 11.0 12.5 14.0 15.5 17.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 i1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank i Voya Investment Mgmt 1 R1000G Median 16.91 46 8.50 36 17.33 34 7.89 18 16.74 9.39 49 City of Clearwater Employees Pension Fund Equity Summary Statistics Voya Investment Mgmt Period Ending 12/17 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 58 140,049,181 196,263,109 34,572,879 1.19 26.95 28.22 1.00 6.40 59.49 10.75 551 223,790,415 12,085,828 1.31 28.63 26.18 1.02 6.80 63.53 10.26 Ten Largest Holdings Microsoft Corp Apple Inc Amazon Com Inc Unitedhealth Group I Home Depot Inc Comcast Corp New Facebook Inc Alphabet Inc Cl-A Texas Instrs Inc Johnson & Johnson Market Value % of Portfolio Quarterly Ret 8,936,620 8,175,671 5,046,263 4,329,834 4,328,107 4,137,245 4,111,871 3,701,648 3,539,785 3,108,910 6.38 5.84 3.60 3.09 3.09 2.96 2.94 2.64 2.53 2.22 15.42 10.20 21.65 12.94 16.46 4.51 3.27 8.18 17.26 8.12 Ten Best Performers Xpo Logistics Inc Burlington Stores In Diamondback Energy I Dollar Tree Inc Marriott Intl Inc Ne Amazon Com Inc Adobe Sys Inc Texas Instrs Inc Delta Air Lines Inc Home Depot Inc Quarterly Ret 35.13 28.88 28.88 23.60 23.42 21.65 17.47 17.26 16.84 16.46 Ten Worst Performers Celgene Corp Boston Scientific Co Electronic Arts Gilead Sciences Inc Hasbro Bradley Inc Crown Holdings Inc Dominos Pizza Inc Microchip Technology Lam Resh Corp Ingersoll-Rand Plc Quarterly Ret -28.43 -15.02 -11.01 -10.96 -6.37 -5.81 -4.59 -1.73 -0.25 0.54 50 City of Clearwater Employees Pension Fund Equity Contribution to Return Voya Investment Mgmt Period Ending 12/17 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 58 140,049,181 196,263,109 34,572,879 1.19 26.95 28.22 1.00 6.40 59.49 10.75 551 223,790,415 12,085,828 1.31 28.63 26.18 1.02 6.80 63.53 10.26 Ten Best Contributors Microsoft Corp Amazon Com Inc Apple Inc Burlington Stores In Home Depot Inc Texas Instrs Inc Dollar Tree Inc Unitedhealth Group I Marriott Intl Inc Ne Delta Air Lines Inc Market Value % of Portfolio Quarterly Ret 8,936,620 5,046,263 8,175,671 2,471,796 4,328,107 3,539,785 2,513,308 4,329,834 2,374,053 2,887,976 6.38 3.60 5.84 1.77 3.09 2.53 1.80 3.09 1.70 2.06 15.42 21.65 10.20 28.88 16.46 17.26 23.60 12.94 23.42 16.84 Ten Worst Contributors Celgene Corp Boston Scientific Co Electronic Arts Gilead Sciences Inc Hasbro Bradley Inc Crown Holdings Inc Dominos Pizza Inc Microchip Technology Lam Resh Corp Ingersoll-Rand Plc Market Value % of Portfolio Quarterly Ret 2,446,720 2,285,464 2,168,859 1,949,324 1,633,293 1,328,906 1,092,189 1,429,017 1,398,932 1,487,511 1.75 1.63 1.55 1.39 1.17 0.95 0.78 1.02 1.00 1.06 -28.43 -15.02 -11.01 -10.96 -6.37 -5.81 -4.59 -1.73 -0.25 0.54 51 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Voya Investment Mgmt Quarter Ending 12/17 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 0.85 3.58 12.95 18.28 6.73 13.80 3.89 37.29 2.63 0.00 100.00 0.91 3.82 12.49 17.74 6.74 13.76 3.42 37.56 0.99 0.01 100.00 28.88 0.65 11.53 13.82 10.71 -2.85 10.39 8.49 4.01 8.29 6.28 5.60 10.09 10.63 9.45 0.85 6.84 8.65 7.68 11.43 7.73 0.19 -0.18 0.19 0.58 0.08 -0.51 0.14 -0.06 -0.10 0.00 0.34 0.00 0.01 0.01 0.02 -0.00 -0.00 -0.00 -0.00 -0.00 -0.00 0.02 0.19 -0.17 0.20 0.60 0.08 -0.51 0.13 -0.06 -0.10 -0.00 0.36 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 -0.07% [ Actual Return 8.22% ] - [ Buy Hold Return 8.29% ] 52 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Voya Investment Mgmt Quarter Ending 12/17 % Allocation Energy 0.85 0.90 Materials 3.58 3.82 Industrials 12.95 12.49 Con. Discretionary 18.28 17.74 Consumer Staples 6.73 6.74 Health Care 13.80 13.76 Financials 3.89 3.42 Infomation Tech. 37.29 37.56 Telecom. Services 2.63 0.99 Utilities 0.00 0.01 Voya Investment Mgmt R1000G % Return 28.88 6.28 0.65 5.60 11.53 10.09 13.82 10.63 10.71 9.45 -2.85 0.85 10.39 6.84 8.49 8.65 4.01 7.68 11.43 % Variance 0.19 -0.17 0.20 0.60 0.08 -0.51 0.13 -0.06 -0.10 -0.00 53 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 12/31/17 -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 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 5.34 5.33 45,576 5 2,434 48,014 13.77 13.66 42,187 18 5,810 48,014 13.77 13.66 42,187 18 5,810 48,014 8.65 8.65 40,120 -2,966 10,861 48,014 14.13 14.04 95,899 -79,462 31,577 48,014 7.15 7.10 48,696 -38,773 38,091 48,014 6.18 6.12 26,197 -38,773 60,590 48,014 Portfolio Performance (%) 54 City of Clearwater Employees Pension Fund NTGI-QM R1000V as of 12/31/17 Domestic Equity $48,014 100.00% Periods from 6/07 to 12/17 Alpha Beta R-Squared 0.02 1.00 1.00 Annualized Return% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 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 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 6.18 6.12 0.60 17.15 17.21 0.59 0.33 0.32 0.00 0.08 Asset Allocation ($000) Risk/Return Analysis 55 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 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 Last 8 Years Last 9 Years Last 10 Years 8.49 7.59 6.79 5.57 3.45 5.34 78 5.33 79 22.12 18.85 16.56 15.17 12.05 13.77 87 13.66 90 22.70 17.87 16.54 14.24 13.07 15.39 66 15.49 64 11.63 10.94 10.26 8.76 6.41 8.65 82 8.65 82 12.02 11.44 10.24 9.53 6.17 9.85 59 9.83 59 17.28 16.28 14.81 13.89 10.64 14.13 62 14.04 66 17.61 16.70 15.54 14.49 11.82 14.78 62 14.61 70 15.07 14.10 13.34 12.43 9.62 12.42 75 12.46 72 14.93 14.30 13.63 12.91 10.38 12.83 83 12.84 80 16.79 15.65 15.13 13.74 12.71 13.64 78 13.58 81 9.65 8.82 8.31 7.87 7.16 7.15 96 7.10 96 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% n1 n1 n1 n1 n1 n1 n1 n1 n1 n1 n1 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 22.12 18.85 16.56 15.17 12.05 13.77 87 13.66 90 29.04 17.28 15.01 11.84 9.74 17.03 29 17.34 23 1.51 -0.23 -2.28 -4.36 -11.39 -3.66 64 -3.83 66 15.29 13.72 12.22 10.50 2.65 13.54 28 13.45 31 41.81 37.84 33.60 27.67 24.08 32.94 55 32.54 56 20.88 18.61 16.52 13.99 11.72 18.09 28 17.50 40 14.68 4.05 1.16 -2.79 -5.83 -0.77 61 0.39 54 24.30 18.05 15.90 13.69 10.68 15.75 53 15.51 57 58.74 32.92 27.22 20.35 7.38 20.35 75 19.69 78 -23.74 -34.98 -36.69 -39.40 -45.27 -36.86 54 -36.85 54 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% n1 n1 n1 n1 n1 n1 n1 n1 n1 n1 57 City of Clearwater Employees Pension Fund December 31, 2017 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 Mar 15 Dec 17 Dec 14 Sep 17 Sep 14 Jun 17 Jun 14 Mar 17 Mar 14 Dec 16 11.77 10.86 9.61 8.68 6.43 8.65 76 8.65 76 11.18 9.91 9.33 7.94 5.59 8.54 69 8.53 69 9.72 8.50 7.72 6.37 3.91 7.38 59 7.36 60 10.39 9.52 8.78 7.40 5.27 8.68 52 8.67 54 9.91 8.96 8.20 7.24 4.66 8.58 39 8.59 39 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% n 1 n 1 n 1 n 1 n 1 NTGI-QM R1000V Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -0.3% -0.2% -0.1% -0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 -0.2 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 12/31/17 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 0 4 1.01 1.00 1.38 5.34 13.77 13.77 3.24 1.00 0.02 1.00 3.99 12.89 0.03 3.01 0 4 1.34 5.33 13.66 13.66 3.26 3.93 2 10 1.00 0.99 0.75 -8.37 6.66 -3.66 18.95 7.99 1.00 0.01 1.00 1.03 8.28 0.14 -0.02 2 10 -8.40 6.68 -3.83 19.22 8.03 1.03 3 17 1.00 0.99 0.80 -8.37 12.60 -4.27 32.94 8.47 1.01 0.00 1.00 1.64 13.79 0.17 0.48 3 17 -8.40 12.31 -4.42 32.54 8.42 1.63 14 28 1.00 1.00 0.83 -22.13 18.29 -42.31 54.33 17.15 1.00 0.02 1.00 0.33 5.60 0.50 0.08 14 28 -22.17 18.24 -42.42 53.57 17.21 0.32 59 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Large Value Portfolios Annualized Rate of Return5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 6.0 6.9 7.8 8.7 9.5 10.4 11.3 12.2 13.1 14.0 14.9 n1 MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank n NTGI-QM R1000V 1 R1000V Median 8.65 82 7.99 28 8.65 82 8.03 30 10.26 9.08 Annualized Rate of Return6.5 7.05 7.6 8.15 8.7 9.25 9.8 10.35 10.9 11.45 12.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 n1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank n NTGI-QM R1000V 1 R1000V Median 14.13 62 8.47 35 14.04 66 8.42 29 14.81 9.38 60 City of Clearwater Employees Pension Fund Eagle Capital Management as of 12/31/17 Berkshire Hathaway I Microsoft Corp Citigroup Inc Oracle Corp Alphabet Inc Cl-C Amazon Com Inc Twenty First Centy F Marriott Intl Inc Ne Unitedhealth Group I Aon Plc GICS Sector % Port Financials Information Technology Financials Information Technology Information Technology Consumer Discretionary Consumer Discretionary Consumer Discretionary Health Care Financials 8.65 8.24 6.86 6.19 5.89 5.45 5.17 4.71 4.58 4.57 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 2.54 3.88 0.00 27.17 1.04 7.40 34.90 23.07 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 1/31/13 Eagle Capital Management Russell 1000 Value Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year 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 7.82 5.33 46,024 96 3,599 49,719 23.52 13.66 39,941 354 9,425 49,719 23.52 13.66 39,941 354 9,425 49,719 11.67 8.65 42,015 -6,342 14,047 49,719 15.44 12.84 33,239 -12,345 28,825 49,719 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 61 City of Clearwater Employees Pension Fund Eagle Capital Management as of 12/31/17 Cash & Equiv $1,305 2.63% Domestic Equity $48,414 97.37% Periods from 1/13 to 12/17 Alpha Beta R-Squared 1.16 0.73 0.63 Annualized Return% -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 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 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 15.44 12.84 0.27 10.13 9.70 0.10 1.50 1.30 0.00 0.16 Asset Allocation ($000) Risk/Return Analysis 62 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low E Eagle Capital Management Net Ret Rank 1 Russell 1000 Value Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years 8.49 7.59 6.79 5.57 3.45 7.82 10 5.33 79 22.12 18.85 16.56 15.17 12.05 23.52 2 13.66 90 22.70 17.87 16.54 14.24 13.07 16.65 46 15.49 64 11.63 10.94 10.26 8.76 6.41 11.67 2 8.65 82 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% E 1 E 1 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 2017 2016 2015 2014 22.12 18.85 16.56 15.17 12.05 23.52 2 13.66 90 29.04 17.28 15.01 11.84 9.74 10.16 92 17.34 23 1.51 -0.23 -2.28 -4.36 -11.39 2.35 3 -3.83 66 15.29 13.72 12.22 10.50 2.65 13.39 31 13.45 31 -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% E 1 E 1 E 1 E 1 64 City of Clearwater Employees Pension Fund December 31, 2017 Performance Comparison Total Returns of Large Value Portfolios High 1st Qt Median 3rd Qt Low E Eagle Capital Management Net Ret Rank 1 Russell 1000 Value Net Ret Rank Mar 15 Dec 17 Dec 14 Sep 17 Sep 14 Jun 17 Jun 14 Mar 17 Mar 14 Dec 16 11.77 10.86 9.61 8.68 6.43 11.67 5 8.65 76 11.18 9.91 9.33 7.94 5.59 10.86 8 8.53 69 9.72 8.50 7.72 6.37 3.91 10.19 4 7.36 60 10.39 9.52 8.78 7.40 5.27 10.21 8 8.67 54 9.91 8.96 8.20 7.24 4.66 8.53 41 8.59 39 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% E 1 E 1 E 1 E 1 E 1 Eagle Capital Management Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% -6.6 1.0 2.4 0.1 -1.3 -1.2 2.0 0.5 2.0 1.6 1.6 1.1 -4.8 -2.5 1.1 0.1 3.1 2.4 0.5 2.4 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. Russell 1000 Value 65 City of Clearwater Employees Pension Fund Risk Measure Summary Eagle Capital Management Quarterly Periods Ending 12/31/17 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 1.72 1.00 3.67 7.82 23.52 23.52 4.13 1.43 0.87 0.86 5.49 15.87 2.28 3.93 0 4 1.34 5.33 13.66 13.66 3.26 3.93 2 10 1.15 0.64 0.83 -6.93 7.82 -2.18 23.52 8.76 0.94 0.85 0.73 1.29 12.03 4.62 0.60 2 10 -8.40 6.68 -3.83 19.22 8.03 1.03 2 17 0.79 -6.93 10.17 -2.18 24.38 3 17 -8.40 12.31 -4.42 32.54 2 17 1.11 0.44 0.79 -6.93 10.17 -2.18 24.38 7.87 0.92 0.89 0.76 1.85 15.93 4.00 0.63 3 16 -8.40 10.01 -4.42 23.82 7.51 1.57 66 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 12/31/17 Annualized Rate of Return3.0 4.2 5.4 6.6 7.8 9.0 10.2 11.4 12.6 13.8 15.0 2.0 3.8 5.6 7.4 9.2 11.0 12.8 14.6 16.4 18.1 19.9 E 1 MedianRiskMedian Return Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank E Eagle Capital Management 1 Russell 1000 Value Median 11.67 23 8.76 51 8.65 85 8.03 40 11.08 8.84 67 City of Clearwater Employees Pension Fund Equity Summary Statistics Eagle Capital Management Period Ending 12/17 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 48,414,197 298,446,275 94,860,463 1.10 27.94 23.41 1.16 1.24 81.74 5.87 713 133,356,306 9,920,434 2.36 23.43 21.14 1.00 1.80 68.28 0.51 Ten Largest Holdings Berkshire Hathaway I Microsoft Corp Citigroup Inc Oracle Corp Alphabet Inc Cl-C Amazon Com Inc Twenty First Centy F Marriott Intl Inc Ne Unitedhealth Group I Aon Plc Market Value % of Portfolio Quarterly Ret 4,187,398 3,986,164 3,318,686 2,997,552 2,851,440 2,637,155 2,502,702 2,280,943 2,215,623 2,211,000 8.65 8.24 6.86 6.19 5.89 5.45 5.17 4.71 4.58 4.57 8.13 15.42 2.74 -1.83 9.10 21.65 32.30 23.42 12.94 -8.05 Ten Best Performers Twenty First Centy F Marriott Intl Inc Ne Amazon Com Inc Bank Amer Corp Microsoft Corp Unitedhealth Group I J P Morgan Chase & C Wells Fargo & Co New Anadarko Pete Corp Morgan Stanley Quarterly Ret 32.30 23.42 21.65 16.99 15.42 12.94 12.61 10.77 9.92 9.47 Ten Worst Performers Liberty Tripadvisor Tripadvisor Inc Liberty Global Plc Dish Network Corp Aon Plc Oracle Corp Thermo Fisher Scient Fidelity Natl Inform General Motors Corp. Citigroup Inc Quarterly Ret -23.68 -14.98 -14.64 -11.95 -8.05 -1.83 0.44 1.06 2.43 2.74 68 City of Clearwater Employees Pension Fund Equity Contribution to Return Eagle Capital Management Period Ending 12/17 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 48,414,197 298,446,275 94,860,463 1.10 27.94 23.41 1.16 1.24 81.74 5.87 713 133,356,306 9,920,434 2.36 23.43 21.14 1.00 1.80 68.28 0.51 Ten Best Contributors Twenty First Centy F Microsoft Corp Amazon Com Inc Marriott Intl Inc Ne Berkshire Hathaway I Unitedhealth Group I Alphabet Inc Cl-C Bank Amer Corp J P Morgan Chase & C Wells Fargo & Co New Market Value % of Portfolio Quarterly Ret 2,502,702 3,986,164 2,637,155 2,280,943 4,187,398 2,215,623 2,851,440 1,493,712 1,636,182 1,457,597 5.17 8.24 5.45 4.71 8.65 4.58 5.89 3.09 3.38 3.01 32.30 15.42 21.65 23.42 8.13 12.94 9.10 16.99 12.61 10.77 Ten Worst Contributors Aon Plc Dish Network Corp Tripadvisor Inc Oracle Corp Liberty Global Plc Liberty Tripadvisor Thermo Fisher Scient Fidelity Natl Inform Ilg Inc Noble Energy Inc Market Value % of Portfolio Quarterly Ret 2,211,000 1,129,288 682,308 2,997,552 196,732 107,162 1,367,136 592,767 145,419 798,436 4.57 2.33 1.41 6.19 0.41 0.22 2.82 1.22 0.30 1.65 -8.05 -11.95 -14.98 -1.83 -14.64 -23.68 0.44 1.06 7.11 3.11 69 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Eagle Capital Management Quarter Ending 12/17 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 2.56 3.95 0.00 24.02 4.13 7.31 35.13 22.88 0.00 0.00 100.00 10.89 2.87 8.54 6.76 8.69 13.89 26.00 8.19 3.17 6.15 100.00 5.39 4.65 13.15 7.79 7.82 5.96 7.48 8.18 6.42 8.81 1.41 5.65 4.02 2.15 8.51 10.30 2.12 0.53 5.26 -0.03 -0.16 0.00 1.80 0.16 0.42 -0.89 -0.65 0.00 0.00 0.64 -0.10 0.04 0.33 0.07 0.06 0.20 0.30 0.74 0.10 0.29 2.03 -0.12 -0.13 0.33 1.87 0.21 0.62 -0.60 0.09 0.10 0.29 2.67 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 -0.07% [ Actual Return 8.11% ] - [ Buy Hold Return 8.18% ] 70 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Eagle Capital Management Quarter Ending 12/17 % Allocation Energy 2.56 10.89 Materials 3.95 2.87 Industrials 0.00 8.54 Con. Discretionary 24.02 6.76 Consumer Staples 4.13 8.69 Health Care 7.31 13.89 Financials 35.13 26.00 Infomation Tech. 22.88 8.19 Telecom. Services 0.00 3.17 Utilities 0.00 6.15 Eagle Capital Management Russell 1000 Value % Return 5.39 6.42 4.65 8.81 1.41 13.15 5.65 7.79 4.02 7.82 2.15 5.96 8.51 7.48 10.30 2.12 0.53 % Variance -0.12 -0.13 0.33 1.87 0.21 0.62 -0.60 0.09 0.10 0.29 71 City of Clearwater Employees Pension Fund Manning and Napier as of 12/31/17 Johnson & Johnson J P Morgan Chase & C Wal Mart Stores Inc Wells Fargo & Co New Home Depot Inc Intel Corp Pfizer Inc Taiwan Semiconductor Boeing Co Cisco Sys Inc GICS Sector % Port Health Care Financials Consumer Staples Financials Consumer Discretionary Information Technology Health Care Information Technology Industrials Information Technology 4.09 3.99 3.33 3.32 3.18 2.67 2.66 2.56 2.55 2.39 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 1.75 2.56 20.79 10.66 15.89 18.73 10.18 17.52 1.91 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 1/31/13 Manning and Napier Russell 1000 Value Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 1/31/13 Manning and Napier Russell 1000 Value Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 7.20 5.33 40,954 55 2,949 43,959 21.55 13.66 35,983 205 7,771 43,959 21.55 13.66 35,983 205 7,771 43,959 11.40 8.65 40,098 -9,164 13,025 43,959 13.26 12.84 33,104 -13,166 24,021 43,959 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 72 City of Clearwater Employees Pension Fund Manning and Napier as of 12/31/17 Cash & Equiv $1,801 4.10% Domestic Equity $42,158 95.90% Periods from 1/13 to 12/17 Alpha Beta R-Squared 0.97 0.63 0.69 Annualized Return% -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 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 14.0 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 13.26 12.84 0.27 8.79 9.70 0.10 1.48 1.30 0.00 -0.25 Asset Allocation ($000) Risk/Return Analysis 73 City of Clearwater Employees Pension Fund Large Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low M Manning and Napier Net Ret Rank 1 Russell 1000 Value Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years 8.49 7.59 6.79 5.57 3.45 7.20 35 5.33 79 22.12 18.85 16.56 15.17 12.05 21.55 10 13.66 90 22.70 17.87 16.54 14.24 13.07 17.64 28 15.49 64 11.63 10.94 10.26 8.76 6.41 11.40 10 8.65 82 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% M 1 M 1 M 1 M 1 74 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 2017 2016 2015 2014 22.12 18.85 16.56 15.17 12.05 21.55 10 13.66 90 29.04 17.28 15.01 11.84 9.74 13.85 56 17.34 23 1.51 -0.23 -2.28 -4.36 -11.39 -0.09 22 -3.83 66 15.29 13.72 12.22 10.50 2.65 10.46 75 13.45 31 -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% M 1 M 1 M 1 M 1 75 City of Clearwater Employees Pension Fund December 31, 2017 Performance Comparison Total Returns of Large Value Portfolios High 1st Qt Median 3rd Qt Low M Manning and Napier Net Ret Rank 1 Russell 1000 Value Net Ret Rank Mar 15 Dec 17 Dec 14 Sep 17 Sep 14 Jun 17 Jun 14 Mar 17 Mar 14 Dec 16 11.77 10.86 9.61 8.68 6.43 11.40 10 8.65 76 11.18 9.91 9.33 7.94 5.59 9.40 47 8.53 69 9.72 8.50 7.72 6.37 3.91 8.24 32 7.36 60 10.39 9.52 8.78 7.40 5.27 9.16 33 8.67 54 9.91 8.96 8.20 7.24 4.66 7.91 56 8.59 39 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% M 1 M 1 M 1 M 1 M 1 Manning and Napier Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% -6.5 -1.3 0.0 -1.3 -1.0 0.5 1.2 -3.3 1.3 -0.4 2.3 0.7 1.3 -0.9 0.4 -3.7 2.2 1.6 1.2 1.8 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. Russell 1000 Value 76 City of Clearwater Employees Pension Fund Risk Measure Summary Manning and Napier Quarterly Periods Ending 12/31/17 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 1.58 1.00 2.99 7.20 21.55 21.55 3.59 1.35 0.68 0.95 5.77 15.33 0.89 8.07 0 4 1.34 5.33 13.66 13.66 3.26 3.93 2 10 1.13 0.64 0.75 -6.33 7.20 -0.09 21.55 7.19 0.81 1.01 0.81 1.53 13.51 3.47 0.71 2 10 -8.40 6.68 -3.83 19.22 8.03 1.03 2 17 0.63 -6.33 8.57 -4.66 21.56 3 17 -8.40 12.31 -4.42 32.54 2 17 0.96 0.53 0.63 -6.33 8.57 -4.66 21.56 6.49 0.77 0.78 0.78 1.89 16.05 3.54 0.10 3 16 -8.40 10.01 -4.42 23.82 7.51 1.57 77 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Equity Portfolios 3 Years Ending 12/31/17 Annualized Rate of Return3.0 4.2 5.4 6.6 7.8 9.0 10.2 11.4 12.6 13.8 15.0 2.0 3.8 5.6 7.4 9.2 11.0 12.8 14.6 16.4 18.1 19.9 M 1 MedianRiskMedian Return Historical Standard Deviation of Return Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Manning and Napier 1 Russell 1000 Value Median 11.40 32 7.19 9 8.65 85 8.03 40 11.08 8.84 78 City of Clearwater Employees Pension Fund Equity Summary Statistics Manning and Napier Period Ending 12/17 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 85 42,158,113 145,565,031 35,468,138 2.55 20.40 21.25 0.97 3.98 61.23 5.02 713 133,356,306 9,920,434 2.36 23.43 21.14 1.00 1.80 68.28 0.51 Ten Largest Holdings Johnson & Johnson J P Morgan Chase & C Wal Mart Stores Inc Wells Fargo & Co New Home Depot Inc Intel Corp Pfizer Inc Taiwan Semiconductor Boeing Co Cisco Sys Inc Market Value % of Portfolio Quarterly Ret 1,721,770 1,680,562 1,400,769 1,396,320 1,337,892 1,124,596 1,119,886 1,078,401 1,074,947 1,008,516 4.09 3.99 3.33 3.32 3.18 2.67 2.66 2.56 2.55 2.39 8.12 12.61 27.04 10.77 16.46 21.93 2.38 5.59 16.64 14.87 Ten Best Performers Grainger W W Inc Wal Mart Stores Inc Qualcomm Inc Intel Corp Best Buy Inc Fastenal Co Valero Energy Corp N Smucker J M Co Marathon Pete Corp C H Robinson Worldwi Quarterly Ret 32.26 27.04 24.52 21.93 20.88 20.81 20.49 19.30 18.42 17.69 Ten Worst Performers Sanofi-Aventis Merck & Co Inc New Gilead Sciences Inc Cvs Corp Coca-Cola Femsa S A Philips Elec(Kon) Whirlpool Corp Cardinal Health Inc Western Digital Corp Hasbro Bradley Inc Quarterly Ret -13.64 -11.37 -10.96 -10.26 -8.56 -8.25 -7.95 -7.75 -7.38 -6.37 79 City of Clearwater Employees Pension Fund Equity Contribution to Return Manning and Napier Period Ending 12/17 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 85 42,158,113 145,565,031 35,468,138 2.55 20.40 21.25 0.97 3.98 61.23 5.02 713 133,356,306 9,920,434 2.36 23.43 21.14 1.00 1.80 68.28 0.51 Ten Best Contributors Wal Mart Stores Inc Intel Corp Home Depot Inc J P Morgan Chase & C Boeing Co Qualcomm Inc Wells Fargo & Co New Cisco Sys Inc Johnson & Johnson 3m Co Market Value % of Portfolio Quarterly Ret 1,400,769 1,124,596 1,337,892 1,680,562 1,074,947 668,689 1,396,320 1,008,516 1,721,770 996,792 3.33 2.67 3.18 3.99 2.55 1.59 3.32 2.39 4.09 2.37 27.04 21.93 16.46 12.61 16.64 24.52 10.77 14.87 8.12 12.70 Ten Worst Contributors Merck & Co Inc New Sanofi-Aventis Gilead Sciences Inc Cvs Corp Amgen Unilever Plc Philips Elec(Kon) Western Digital Corp Cardinal Health Inc Coca-Cola Femsa S A Market Value % of Portfolio Quarterly Ret 826,044 652,955 569,610 466,828 741,857 894,239 315,932 215,288 199,066 157,968 1.96 1.55 1.35 1.11 1.76 2.12 0.75 0.51 0.47 0.38 -11.37 -13.64 -10.96 -10.26 -6.10 -3.80 -8.25 -7.38 -7.75 -8.56 80 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Manning and Napier Quarter Ending 12/17 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 1.58 2.60 20.37 10.25 15.98 20.45 10.01 16.85 1.92 0.00 100.00 10.89 2.87 8.54 6.76 8.69 13.89 26.00 8.19 3.17 6.15 100.00 19.52 6.19 9.77 11.82 7.13 -1.41 9.46 11.96 6.72 7.61 6.42 8.81 1.41 5.65 4.02 2.15 8.51 10.30 2.12 0.53 5.26 0.21 -0.07 1.71 0.63 0.50 -0.73 0.10 0.28 0.09 0.00 2.71 -0.11 -0.01 -0.46 0.01 -0.09 -0.20 -0.52 0.44 0.04 0.29 -0.61 0.10 -0.08 1.25 0.65 0.41 -0.93 -0.42 0.72 0.13 0.29 2.10 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 0.02% [ Actual Return 7.63% ] - [ Buy Hold Return 7.61% ] 81 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Manning and Napier Quarter Ending 12/17 % Allocation Energy 1.58 10.89 Materials 2.60 2.87 Industrials 20.37 8.54 Con. Discretionary 10.25 6.76 Consumer Staples 15.98 8.69 Health Care 20.45 13.89 Financials 10.01 26.00 Infomation Tech. 16.85 8.19 Telecom. Services 1.92 3.17 Utilities 0.00 6.15 Manning and Napier Russell 1000 Value % Return 19.52 6.42 6.19 8.81 9.77 1.41 11.82 5.65 7.13 4.02 -1.41 2.15 9.46 8.51 11.96 10.30 6.72 2.12 0.53 % Variance 0.10 -0.08 1.25 0.65 0.41 -0.93 -0.42 0.72 0.13 0.29 82 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 12/31/17 Lkq Corp Universal Health Svc Global Pmts Inc Eqt Corp Ally Finl Inc Transdigm Group Inc Great Plains Energy Aptiv Plc Progressive Corp Ohi S&P Global Inc GICS Sector % Port Consumer Discretionary Health Care Information Technology Energy Financials Industrials Utilities Consumer Discretionary Financials Financials 2.38 2.32 2.26 2.26 2.23 2.08 1.92 1.86 1.83 1.83 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 7.60 5.36 17.31 11.83 0.91 13.35 21.11 18.12 0.00 4.43 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 3/31/88 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 4.35 6.07 77,688 141 3,380 81,209 19.76 18.52 75,957 -8,930 14,183 81,209 19.76 18.52 75,957 -8,930 14,183 81,209 8.05 9.58 104,042 -41,318 18,486 81,209 14.46 14.96 87,995 -69,330 62,544 81,209 10.00 9.11 91,352 -78,341 68,198 81,209 12.53 11.84 15,585 -78,341 143,965 81,209 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 83 City of Clearwater Employees Pension Fund Mid Cap Equity Comp as of 12/31/17 Cash & Equiv $2,993 3.69% Domestic Equity $78,217 96.31% Periods from 3/88 to 12/17 Alpha Beta R-Squared 0.01 1.14 0.83 Annualized Return% 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 M1 T Annualized Standard Deviation% M Mid Cap Equity Comp 1 R Mid Cap T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 12.53 11.84 3.26 21.59 17.17 1.31 0.43 0.50 0.00 0.10 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 84 City of Clearwater Employees Pension Fund Midcap Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 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 8.29 6.37 6.18 5.56 0.92 4.35 79 6.07 60 25.69 20.49 16.33 15.71 11.80 19.76 29 18.52 29 30.48 19.37 18.51 16.72 13.68 13.06 99 16.13 85 15.77 12.60 11.19 10.01 7.24 8.05 94 9.58 78 14.26 11.91 10.86 10.31 8.06 9.36 82 10.48 70 17.77 17.04 15.06 14.75 12.71 14.46 83 14.96 59 18.09 16.54 15.53 15.24 13.50 15.68 43 15.34 72 15.73 13.73 12.89 12.57 11.65 13.29 33 12.76 69 16.79 15.84 14.55 13.84 13.55 15.03 36 14.27 57 20.30 19.23 16.94 15.69 15.62 18.06 34 16.93 51 12.25 11.79 9.94 9.20 8.95 10.00 42 9.11 90 0% 5% 10% 15% 20% 25% 30% 35% M 1 M 1 M 1 M 1 M1 M1 M1 M1 M1 M1 M1 85 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 25.69 20.49 16.33 15.71 11.80 19.76 29 18.52 29 21.81 20.72 18.11 15.54 9.64 6.73 99 13.80 81 11.63 0.55 -1.42 -2.66 -9.42 -1.30 45 -2.44 70 15.24 11.02 9.92 6.88 4.78 13.38 9 13.21 9 43.04 40.10 33.50 31.52 29.83 37.36 25 34.76 34 21.85 19.03 17.79 16.70 13.65 22.00 1 17.26 65 6.35 1.19 -0.41 -2.09 -4.53 -0.10 31 -1.56 56 28.99 27.37 26.49 23.24 19.30 28.03 9 25.49 53 62.62 44.53 37.49 30.82 28.44 45.33 17 40.47 39 -30.61 -35.02 -37.35 -38.94 -41.48 -41.79 100 -41.46 94 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% M1 M 1 M1 M1 M1 M 1 M1 M1 M 1 M1 86 City of Clearwater Employees Pension Fund Risk Measure Summary Mid Cap Equity Comp Quarterly Periods Ending 12/31/17 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 1.07 0.50 2.14 6.92 19.76 19.76 3.95 0.89 0.75 0.59 4.78 21.32 4.20 0.25 0 4 2.70 6.07 18.52 18.52 3.07 5.76 2 10 0.82 0.79 0.50 -7.57 6.92 -6.64 19.76 7.84 0.90 -0.13 0.75 0.97 8.47 3.95 -0.37 2 10 -8.01 6.07 -4.04 18.52 7.53 1.22 3 17 0.93 0.76 0.45 -7.57 12.83 -6.64 37.36 9.28 1.00 -0.09 0.83 1.53 14.22 3.92 -0.12 3 17 -8.01 12.95 -4.04 34.76 8.43 1.74 34 85 1.13 1.15 0.55 -26.78 49.24 -41.79 77.74 21.59 1.14 0.01 0.83 0.43 8.14 9.34 0.10 35 84 -27.28 20.80 -41.46 67.72 17.17 0.50 87 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Neutral Portfolios Annualized Rate of Return1.0 2.5 4.0 5.5 7.0 8.5 10.0 11.5 13.0 14.5 16.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 M 1 MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 1 R Mid Cap Median 8.05 94 7.84 18 9.58 78 7.53 14 11.19 8.27 Annualized Rate of Return4.0 5.1 6.2 7.3 8.4 9.5 10.6 11.7 12.8 13.9 15.0 11.0 11.9 12.7 13.6 14.5 15.4 16.3 17.2 18.1 19.0 19.9 M 1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Mid Cap Equity Comp 1 R Mid Cap Median 14.46 83 9.28 60 14.96 59 8.43 2 15.06 9.23 88 City of Clearwater Employees Pension Fund Artisan Partners as of 12/31/17 Lkq Corp Global Pmts Inc Progressive Corp Ohi S&P Global Inc Ihs Markit Ltd Cigna Corp Boston Scientific Co Concho Res Inc Atlassian Corp Plc Becton Dickinson GICS Sector % Port Consumer Discretionary Information Technology Financials Financials Industrials Health Care Health Care Energy Information Technology Health Care 4.88 4.65 3.77 3.76 3.74 3.11 2.80 2.53 2.39 2.30 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 4.52 1.57 22.34 11.84 1.87 16.51 15.34 26.02 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 7/31/01 Artisan Partners R Mid Cap G Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/01 Artisan Partners R Mid Cap G Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 3.23 6.81 38,146 78 1,232 39,456 20.81 25.27 36,678 -4,677 7,454 39,456 20.81 25.27 36,678 -4,677 7,454 39,456 7.47 10.30 50,874 -20,336 8,918 39,456 13.07 15.31 43,165 -32,342 28,634 39,456 9.91 9.10 26,364 -37,349 50,441 39,456 9.91 8.62 29,914 -37,349 46,892 39,456 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 89 City of Clearwater Employees Pension Fund Artisan Partners as of 12/31/17 Cash & Equiv $1,429 3.62% Domestic Equity $38,027 96.38% Periods from 7/01 to 12/17 Alpha Beta R-Squared 0.37 0.94 0.92 Annualized Return% 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 9.91 8.62 1.36 18.02 17.67 0.49 0.47 0.41 0.00 0.12 Asset Allocation ($000) Risk/Return Analysis 90 City of Clearwater Employees Pension Fund Midcap Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 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 9.75 8.30 6.43 4.00 3.76 3.23 99 6.81 42 31.66 28.75 23.04 20.31 12.02 20.81 71 25.27 34 21.28 19.33 16.34 14.64 11.39 9.57 100 15.95 56 14.78 12.92 11.00 8.66 6.87 7.47 93 10.30 55 13.73 12.02 9.95 8.36 6.28 7.34 86 10.70 43 18.36 16.69 15.09 14.13 11.47 13.07 89 15.31 49 17.02 15.90 15.38 15.22 12.95 14.33 91 15.39 50 12.17 12.79 14.60 14.40 18.20 17.57 9.91 9.10 0% 5% 10% 15% 20% 25% 30% 35% r 1 r 1 r 1 r 1 r 1 r 1 r1 r1 r1 r1 r1 91 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 31.66 28.75 23.04 20.31 12.02 20.81 71 25.27 34 20.03 13.90 8.65 6.52 1.88 -0.63 99 7.33 63 9.79 3.39 1.66 -2.10 -4.32 3.38 25 -0.20 59 13.90 9.57 7.51 5.45 2.87 6.96 56 11.91 9 42.84 39.01 37.96 34.40 30.14 39.21 23 35.76 61 22.65 20.03 16.08 14.02 10.47 20.82 13 15.80 51 12.41 6.28 0.19 -6.01 -8.97 0.07 52 -1.66 68 39.42 32.23 27.97 24.52 19.30 33.15 17 26.39 62 52.68 45.71 39.66 32.22 22.13 51.38 9 46.30 21 -24.64 -28.78 -35.41 -41.63 -44.44 -42.87 79 -44.32 91 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% r 1 r 1 r1 r 1 r1 r 1 r1 r 1 r 1 r1 92 City of Clearwater Employees Pension Fund December 31, 2017 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 Mar 15 Dec 17 Dec 14 Sep 17 Sep 14 Jun 17 Jun 14 Mar 17 Mar 14 Dec 16 16.36 13.54 10.81 9.18 5.80 7.47 90 10.30 56 17.65 13.50 11.91 7.95 6.78 8.37 73 9.96 67 13.63 12.84 10.23 7.86 5.56 7.18 82 7.83 78 12.42 11.96 9.36 6.94 5.25 4.90 100 7.88 62 9.89 9.21 7.36 4.53 3.46 3.19 100 6.23 62 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% r 1 r 1 r 1 r 1 r 1 Artisan Partners Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% -2.2 0.6 6.2 -1.8 0.7 -4.1 -1.1 0.0 -1.2 3.1 1.0 0.7 -6.1 1.9 1.2 -4.4 1.0 2.5 -3.6 -3.3 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R Mid Cap G 93 City of Clearwater Employees Pension Fund Risk Measure Summary Artisan Partners Quarterly Periods Ending 12/31/17 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 0.82 0.50 1.48 7.97 20.81 20.81 6.07 0.75 0.48 0.40 3.29 26.68 6.51 -0.59 0 4 4.21 6.89 25.27 25.27 2.58 9.47 3 9 0.68 0.58 0.58 -7.04 7.97 -6.20 20.81 9.80 0.91 -0.40 0.61 0.72 7.80 6.18 -0.44 2 10 -7.99 6.89 -4.75 25.27 8.44 1.17 4 16 0.83 0.72 0.55 -7.04 16.16 -6.20 39.21 10.63 1.00 -0.47 0.67 1.20 12.79 6.20 -0.33 3 17 -7.99 11.52 -4.75 35.76 8.62 1.75 18 47 0.97 0.89 0.48 -27.54 26.70 -42.87 58.59 18.90 0.94 0.37 0.92 0.53 10.77 5.53 0.12 18 47 -27.36 27.06 -44.32 62.98 19.30 0.47 94 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Midcap Growth Portfolios Annualized Rate of Return5.0 5.9 6.8 7.7 8.6 9.5 10.4 11.3 12.2 13.1 14.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 r 1 MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank r Artisan Partners 1 R Mid Cap G Median 7.47 93 9.80 62 10.30 55 8.44 27 11.00 9.51 Annualized Rate of Return7.0 7.55 8.1 8.65 9.2 9.75 10.3 10.85 11.4 11.95 12.5 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 r 1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank r Artisan Partners 1 R Mid Cap G Median 13.07 89 10.63 61 15.31 49 8.62 7 15.09 9.94 95 City of Clearwater Employees Pension Fund Equity Summary Statistics Artisan Partners Period Ending 12/17 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 59 38,026,897 19,837,409 13,899,657 0.52 41.67 26.53 1.03 5.51 64.17 4.10 421 15,422,230 8,887,018 0.99 34.45 25.85 1.08 5.74 68.97 8.52 Ten Largest Holdings Lkq Corp Global Pmts Inc Progressive Corp Ohi S&P Global Inc Ihs Markit Ltd Cigna Corp Boston Scientific Co Concho Res Inc Atlassian Corp Plc Becton Dickinson Market Value % of Portfolio Quarterly Ret 1,856,830 1,767,833 1,432,724 1,429,905 1,423,715 1,184,015 1,065,796 961,108 909,490 872,723 4.88 4.65 3.77 3.76 3.74 3.11 2.80 2.53 2.39 2.30 13.00 5.49 16.32 8.64 2.43 8.64 -15.02 14.04 29.50 9.62 Ten Best Performers Skechers U S A Inc Match Group Inc Atlassian Corp Plc Diamondback Energy I Neurocrine Bioscienc Svb Finl Group Gardner Denver Hldgs Coherent Inc Discover Finl Svcs Wayfair Inc Quarterly Ret 50.82 35.02 29.50 28.88 26.62 24.95 23.29 20.01 19.93 19.09 Ten Worst Performers First Rep Bk San Fra Expedia Inc Del Regeneron Pharmaceut Boston Scientific Co Alexion Pharmaceutic Tableau Software Inc Albemarle Corp Guidewire Software I Workday Inc Veeva Sys Inc Quarterly Ret -16.92 -16.59 -15.92 -15.02 -14.76 -7.60 -5.94 -4.62 -3.46 -2.00 96 City of Clearwater Employees Pension Fund Equity Contribution to Return Artisan Partners Period Ending 12/17 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 59 38,026,897 19,837,409 13,899,657 0.52 41.67 26.53 1.03 5.51 64.17 4.10 421 15,422,230 8,887,018 0.99 34.45 25.85 1.08 5.74 68.97 8.52 Ten Best Contributors Atlassian Corp Plc Lkq Corp Progressive Corp Ohi Diamondback Energy I Svb Finl Group Gardner Denver Hldgs Concho Res Inc S&P Global Inc Monster Beverage Cor Cigna Corp Market Value % of Portfolio Quarterly Ret 909,490 1,856,830 1,432,724 757,500 596,347 591,264 961,108 1,429,905 709,481 1,184,015 2.39 4.88 3.77 1.99 1.57 1.56 2.53 3.76 1.87 3.11 29.50 13.00 16.32 28.88 24.95 23.29 14.04 8.64 14.55 8.64 Ten Worst Contributors Boston Scientific Co First Rep Bk San Fra Expedia Inc Del Tableau Software Inc Regeneron Pharmaceut Guidewire Software I Alexion Pharmaceutic Albemarle Corp Veeva Sys Inc Workday Inc Market Value % of Portfolio Quarterly Ret 1,065,796 726,996 474,289 857,457 398,894 799,632 232,722 426,897 780,719 313,359 2.80 1.91 1.25 2.26 1.05 2.10 0.61 1.12 2.05 0.82 -15.02 -16.92 -16.59 -7.60 -15.92 -4.62 -14.76 -5.94 -2.00 -3.46 97 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Artisan Partners Quarter Ending 12/17 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 3.93 1.30 20.80 15.68 2.04 17.16 12.88 26.22 0.00 0.00 100.00 2.60 6.46 16.74 17.43 4.14 14.21 7.08 27.76 0.22 0.05 100.00 20.14 0.86 6.02 0.95 14.55 -3.70 7.72 2.93 3.63 5.77 5.49 9.51 7.79 9.16 3.43 9.22 5.91 6.91 11.43 6.63 0.56 -0.06 -0.73 -1.07 0.11 -1.22 -0.19 -0.78 0.00 0.00 -3.38 -0.01 0.06 0.12 -0.02 -0.05 -0.09 0.15 0.01 -0.00 -0.00 0.15 0.55 -0.00 -0.61 -1.09 0.06 -1.32 -0.04 -0.77 -0.00 -0.00 -3.23 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 -0.03% [ Actual Return 3.60% ] - [ Buy Hold Return 3.63% ] 98 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Artisan Partners Quarter Ending 12/17 % Allocation Energy 3.93 2.60 Materials 1.30 6.46 Industrials 20.80 16.74 Con. Discretionary 15.68 17.43 Consumer Staples 2.04 4.14 Health Care 17.16 14.21 Financials 12.88 7.08 Infomation Tech. 26.22 27.76 Telecom. Services 0.00 0.22 Utilities 0.00 0.05 Artisan Partners R Mid Cap G % Return 20.14 5.77 0.86 5.49 6.02 9.51 0.95 7.79 14.55 9.16 -3.70 3.43 7.72 9.22 2.93 5.91 6.91 11.43 % Variance 0.55 -0.00 -0.61 -1.09 0.06 -1.32 -0.04 -0.77 -0.00 -0.00 99 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 12/31/17 Universal Health Svc Eqt Corp Ally Finl Inc Transdigm Group Inc Great Plains Energy Murphy Oil Corp Zimmer Hldgs Inc Wyndham Worldwide Co Dover Corp Pinnacle West Cap Co GICS Sector % Port Health Care Energy Financials Industrials Utilities Energy Health Care Consumer Discretionary Industrials Utilities 4.52 4.41 4.35 4.06 3.74 3.56 3.46 3.09 3.05 3.02 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 10.51 8.95 12.54 11.81 0.00 10.35 26.59 10.63 0.00 8.62 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 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 5.43 5.50 39,542 63 2,148 41,753 18.44 13.34 39,278 -4,254 6,729 41,753 18.44 13.34 39,278 -4,254 6,729 41,753 8.52 9.00 53,168 -20,983 9,568 41,753 15.62 14.68 44,831 -36,988 33,911 41,753 10.93 9.10 29,539 -40,991 53,205 41,753 9.76 7.86 30,365 -40,991 52,379 41,753 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 100 City of Clearwater Employees Pension Fund Wedge Capital Mgmt as of 12/31/17 Cash & Equiv $1,563 3.74% Domestic Equity $40,190 96.26% Periods from 2/07 to 12/17 Alpha Beta R-Squared 0.48 0.99 0.96 Annualized Return% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 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 9.76 7.86 0.74 17.64 17.53 0.42 0.51 0.41 0.00 0.44 Asset Allocation ($000) Risk/Return Analysis 101 City of Clearwater Employees Pension Fund Midcap Value Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 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 Last 8 Years Last 9 Years Last 10 Years 5.43 5.50 18.44 13.34 16.43 16.62 8.52 9.00 11.24 10.41 15.62 14.68 16.84 15.30 14.22 12.76 15.32 14.19 17.69 16.26 10.93 9.10 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% w1 w 1 w1 w1 w 1 w 1 w 1 w 1 w 1 w 1 w 1 102 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 2016 2015 2014 2013 2012 2011 2010 2009 2008 32.06 23.69 16.68 14.07 8.94 14.46 67 20.00 40 3.75 0.41 -3.22 -4.98 -8.83 -5.72 85 -4.78 65 20.03 12.55 10.13 8.05 5.55 19.82 8 14.74 17 46.07 35.66 35.14 30.02 26.69 34.92 58 33.45 66 24.19 21.56 16.71 12.79 8.33 23.16 15 18.48 33 7.69 5.28 -0.48 -1.95 -5.47 -0.33 46 -1.38 62 33.02 25.82 22.21 18.53 14.85 23.30 41 24.76 28 61.66 49.97 38.51 30.40 22.89 38.51 51 34.20 64 -27.10 -28.93 -36.00 -36.93 -39.93 -34.89 38 -38.45 80 -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 w 1 w 1 103 City of Clearwater Employees Pension Fund December 31, 2017 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 Mar 15 Dec 17 Dec 14 Sep 17 Sep 14 Jun 17 Jun 14 Mar 17 Mar 14 Dec 16 12.59 10.10 9.18 8.83 6.51 8.52 75 9.00 67 13.37 10.96 10.47 8.44 7.92 10.29 59 9.19 62 10.32 9.59 9.14 8.08 7.11 9.29 32 7.46 83 11.42 10.92 9.97 9.16 8.18 9.73 60 8.94 78 11.64 10.13 8.97 8.22 6.59 8.94 53 9.45 25 6% 7% 8% 9% 10% 11% 12% 13% 14% w 1 w 1 w 1 w 1 w 1 Wedge Capital Mgmt Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 2.0 -1.7 0.7 0.1 -1.5 -1.1 2.7 4.3 0.4 0.3 -0.1 -1.6 -2.5 -1.5 0.0 -0.7 2.1 1.9 0.6 -0.1 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R Mid Cap V 104 City of Clearwater Employees Pension Fund Risk Measure Summary Wedge Capital Mgmt Quarterly Periods Ending 12/31/17 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 1.38 0.75 2.72 5.93 18.44 18.44 3.17 1.03 1.04 0.81 5.54 17.00 2.13 2.17 0 4 1.37 5.50 13.34 13.34 3.67 3.40 2 10 0.95 0.98 0.50 -8.10 5.93 -7.12 19.68 7.65 0.93 0.05 0.87 1.06 8.76 2.78 -0.17 2 10 -8.04 5.52 -4.78 20.00 7.69 1.12 4 16 1.02 0.79 0.55 -8.10 16.49 -7.12 34.92 9.89 1.03 0.13 0.87 1.55 14.92 3.58 0.24 3 17 -8.04 14.21 -4.78 33.45 8.97 1.61 14 29 1.03 0.91 0.63 -26.40 25.65 -39.75 73.15 19.25 0.99 0.48 0.96 0.47 9.11 3.94 0.44 13 30 -27.19 23.62 -42.51 72.41 19.07 0.37 105 City of Clearwater Employees Pension Fund Equity Summary Statistics Wedge Capital Mgmt Period Ending 12/17 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 44 40,189,791 11,624,824 9,281,100 1.73 30.20 18.46 1.07 2.08 77.89 3.27 584 14,215,378 7,420,055 2.13 31.15 21.25 1.01 1.91 74.44 2.95 Ten Largest Holdings Universal Health Svc Eqt Corp Ally Finl Inc Transdigm Group Inc Great Plains Energy Murphy Oil Corp Zimmer Hldgs Inc Wyndham Worldwide Co Dover Corp Pinnacle West Cap Co Market Value % of Portfolio Quarterly Ret 1,813,600 1,767,423 1,743,768 1,627,124 1,499,160 1,426,282 1,387,705 1,239,809 1,221,979 1,209,556 4.52 4.41 4.35 4.06 3.74 3.56 3.46 3.09 3.05 3.02 2.27 -12.71 20.75 7.42 7.26 17.91 3.26 10.51 11.05 1.53 Ten Best Performers D R Horton Inc Mednax Inc TCF Bkg & Svgs Fa Mi Ally Finl Inc Marvell Technology G Murphy Oil Corp Adtalem Global Ed In Fidelity National Fi Dana Holding Corp Alliance Data System Quarterly Ret 28.21 23.93 20.81 20.75 20.67 17.91 17.29 15.19 14.71 14.68 Ten Worst Performers Eqt Corp Owens Ill Inc Weatherford Intl Plc Convergys Corp Mfa Mtg Invts Inc Csra Inc Epr Pptys Alaska Airgroup Mgm Growth Pptys Llc Keysight Technologie Quarterly Ret -12.71 -11.88 -8.95 -8.86 -7.31 -7.28 -4.71 -3.18 -2.11 -0.14 106 City of Clearwater Employees Pension Fund Equity Contribution to Return Wedge Capital Mgmt Period Ending 12/17 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 44 40,189,791 11,624,824 9,281,100 1.73 30.20 18.46 1.07 2.08 77.89 3.27 584 14,215,378 7,420,055 2.13 31.15 21.25 1.01 1.91 74.44 2.95 Ten Best Contributors Ally Finl Inc D R Horton Inc Murphy Oil Corp Marvell Technology G Mednax Inc Fidelity National Fi Dana Holding Corp Dover Corp Wyndham Worldwide Co Alliance Data System Market Value % of Portfolio Quarterly Ret 1,743,768 919,260 1,426,282 1,165,821 951,232 1,141,884 1,085,139 1,221,979 1,239,809 861,832 4.35 2.29 3.56 2.91 2.37 2.85 2.71 3.05 3.09 2.15 20.75 28.21 17.91 20.67 23.93 15.19 14.71 11.05 10.51 14.68 Ten Worst Contributors Eqt Corp Owens Ill Inc Weatherford Intl Plc Epr Pptys Mfa Mtg Invts Inc Csra Inc Convergys Corp Mgm Growth Pptys Llc Alaska Airgroup Keysight Technologie Market Value % of Portfolio Quarterly Ret 1,767,423 855,762 1,022,901 962,262 422,136 423,099 146,029 591,862 157,605 819,520 4.41 2.13 2.55 2.40 1.05 1.05 0.36 1.48 0.39 2.04 -12.71 -11.88 -8.95 -4.71 -7.31 -7.28 -8.86 -2.11 -3.18 -0.14 107 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Wedge Capital Mgmt Quarter Ending 12/17 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 10.38 9.32 11.99 12.18 0.00 9.61 27.32 10.85 0.00 8.36 100.00 8.10 5.35 11.70 11.80 3.84 6.62 20.13 6.48 0.76 10.72 100.00 -1.55 1.73 6.42 11.73 7.24 6.31 9.03 3.65 5.90 7.18 10.50 6.89 6.78 8.61 4.33 7.17 5.54 -6.04 0.88 5.22 -0.91 -0.82 -0.06 0.60 0.00 0.28 -0.23 0.38 0.00 0.23 -0.52 0.04 0.21 0.00 0.01 -0.13 -0.03 0.14 0.01 0.09 0.10 0.45 -0.86 -0.61 -0.05 0.61 -0.13 0.25 -0.09 0.39 0.09 0.33 -0.07 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 -0.06% [ Actual Return 5.84% ] - [ Buy Hold Return 5.90% ] 108 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Wedge Capital Mgmt Quarter Ending 12/17 % Allocation Energy 10.38 8.10 Materials 9.32 5.35 Industrials 11.99 11.70 Con. Discretionary 12.18 11.80 Consumer Staples 0.00 3.84 Health Care 9.61 6.62 Financials 27.32 20.13 Infomation Tech. 10.85 6.48 Telecom. Services 0.00 0.76 Utilities 8.36 10.72 Wedge Capital Mgmt R Mid Cap V % Return -1.55 7.18 1.73 10.50 6.42 6.89 11.73 6.78 8.61 7.24 4.33 6.31 7.17 9.03 5.54 -6.04 3.65 0.88 % Variance -0.86 -0.61 -0.05 0.61 -0.13 0.25 -0.09 0.39 0.09 0.33 109 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 12/31/17 Grand Canyon Ed Inc Proto Labs Inc National Instrs Corp Chemed Corp New Ritchie Bros Auction Bio Techne Corp Five Below Inc Health Care Group In Heico Corp New Beacon Roofing Suppl GICS Sector % Port Consumer Discretionary Industrials Information Technology Health Care Industrials Health Care Consumer Discretionary Industrials Industrials Industrials 3.15 2.96 2.53 2.30 2.21 2.17 2.17 2.11 2.00 1.93 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.34 1.73 22.54 13.71 6.84 14.79 8.55 31.49 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Small Cap Equity Comp R2000 Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 8/31/03 Small Cap Equity Comp R2000 Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.04 3.34 54,768 116 2,214 57,098 16.66 14.65 51,413 -2,525 8,211 57,098 16.66 14.65 51,413 -2,525 8,211 57,098 10.69 9.96 59,479 -18,074 15,693 57,098 14.18 14.12 49,049 -28,080 36,128 57,098 9.45 8.71 76,717 -69,087 49,467 57,098 10.25 9.63 29,988 -69,087 96,196 57,098 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 110 City of Clearwater Employees Pension Fund Small Cap Equity Comp as of 12/31/17 Cash & Equiv $1,719 3.01% Domestic Equity $55,379 96.99% Periods from 8/03 to 12/17 Alpha Beta R-Squared 0.35 0.90 0.95 Annualized Return% 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 10.25 9.63 1.28 17.22 18.20 0.50 0.52 0.46 0.00 0.09 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 111 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 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 7.46 5.10 3.80 3.32 2.14 4.04 40 3.34 73 25.14 15.01 11.55 10.18 6.23 16.66 15 14.65 28 24.14 19.59 18.30 17.37 16.29 17.46 60 17.93 54 16.54 11.18 10.09 9.96 7.73 10.69 37 9.96 75 13.78 10.28 9.38 8.61 6.38 8.02 90 8.67 64 18.84 15.52 14.63 13.84 12.25 14.18 65 14.12 67 18.57 15.68 15.24 14.49 12.89 14.74 70 14.49 75 14.77 12.74 12.42 11.72 10.02 12.84 20 11.62 80 16.71 14.62 14.23 13.05 12.11 14.77 17 13.42 64 19.02 17.48 16.20 15.23 14.69 16.72 43 14.87 94 12.25 11.45 10.66 9.35 8.76 9.45 68 8.71 99 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% S1 S 1 S1 S1 S1 S1 S1 S 1 S 1 S 1 S1 112 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 25.14 15.01 11.55 10.18 6.23 16.66 15 14.65 28 31.90 27.74 24.68 22.50 16.00 18.26 86 21.31 77 1.60 -1.76 -3.29 -5.78 -13.65 -1.70 23 -4.41 65 8.90 6.68 5.12 2.26 -3.52 0.39 82 4.89 55 47.27 42.70 39.58 36.96 32.69 42.51 26 38.82 58 23.40 18.47 16.76 14.41 11.08 17.61 41 16.34 55 3.41 -1.26 -3.11 -5.57 -10.19 2.07 7 -4.17 64 33.58 30.70 26.79 24.51 20.47 29.27 34 26.85 48 76.99 42.13 35.72 27.36 23.39 33.51 57 27.19 75 -22.78 -30.16 -32.45 -34.45 -40.05 -38.63 87 -33.80 66 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% S1 S1 S1 S1 S1 S1 S 1 S1 S 1 S 1 113 City of Clearwater Employees Pension Fund Risk Measure Summary Small Cap Equity Comp Quarterly Periods Ending 12/31/17 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 0.75 3.17 5.01 16.66 16.66 1.61 0.56 1.88 0.34 9.83 28.17 4.24 0.41 0 4 2.46 5.67 14.65 14.65 3.03 4.56 1 11 0.91 0.63 0.58 -8.82 6.33 -5.01 22.85 8.08 0.71 0.81 0.92 1.27 14.42 3.92 0.09 2 10 -11.92 9.05 -9.76 26.22 10.92 0.87 3 17 0.93 0.76 0.55 -8.82 11.91 -5.01 42.51 10.59 0.86 0.45 0.92 1.31 16.09 3.50 -0.04 3 17 -11.92 12.39 -9.76 38.82 11.74 1.18 15 42 0.95 0.87 0.60 -25.65 20.74 -38.63 57.55 16.94 0.90 0.35 0.95 0.55 10.30 4.17 0.09 16 41 -26.12 20.68 -37.50 62.77 18.34 0.47 114 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios Annualized Rate of Return6.0 6.9 7.8 8.7 9.6 10.5 11.4 12.3 13.2 14.1 15.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 S 1MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank S Small Cap Equity Comp 1 R2000 Median 10.69 37 8.08 5 9.96 75 10.92 70 10.09 10.10 Annualized Rate of Return9.0 9.45 9.9 10.35 10.8 11.25 11.7 12.15 12.6 13.05 13.5 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 S 1MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank S Small Cap Equity Comp 1 R2000 Median 14.18 65 10.59 19 14.12 67 11.74 76 14.63 11.24 115 City of Clearwater Employees Pension Fund Riverbridge Partners as of 12/31/17 Grand Canyon Ed Inc Proto Labs Inc Chemed Corp New Ritchie Bros Auction Five Below Inc Health Care Group In National Instrs Corp Heico Corp New Pegasystems Inc Ultimate Software Gr GICS Sector % Port Consumer Discretionary Industrials Health Care Industrials Consumer Discretionary Industrials Information Technology Industrials Information Technology Information Technology 4.66 4.37 3.40 3.26 3.20 3.11 3.06 2.95 2.65 2.56 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 24.12 12.41 6.40 18.86 3.41 34.81 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 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 3.60 4.59 27,962 65 1,006 29,033 22.97 22.17 23,399 246 5,389 29,033 22.97 22.17 23,399 246 5,389 29,033 10.50 10.28 29,224 -7,559 7,368 29,033 14.17 15.21 24,129 -12,562 17,465 29,033 15.11 14.35 16,876 -12,564 24,720 29,033 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 116 City of Clearwater Employees Pension Fund Riverbridge Partners as of 12/31/17 Cash & Equiv $538 1.85% Domestic Equity $28,495 98.15% Periods from 9/10 to 12/17 Alpha Beta R-Squared 0.82 0.80 0.88 Annualized Return% -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 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 15.11 14.35 0.22 13.97 16.04 0.09 1.07 0.88 0.00 0.02 Asset Allocation ($000) Risk/Return Analysis 117 City of Clearwater Employees Pension Fund Small Growth Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 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 12/17 YTD Last Year Last 2 Years Last 3 Years Last 4 Years Last 5 Years Last 6 Years Last 7 Years 7.83 5.90 4.49 3.36 1.87 3.60 69 4.59 47 15.68 11.90 10.27 8.79 6.38 4.77 99 11.09 36 23.55 16.74 13.43 11.43 8.58 13.98 45 15.96 36 35.55 23.21 19.77 12.64 9.50 22.97 26 22.17 32 35.55 23.21 19.77 12.64 9.50 22.97 26 22.17 32 21.07 19.15 17.20 15.56 13.24 18.03 35 16.62 65 15.67 12.81 11.36 10.01 7.78 10.50 60 10.28 66 12.93 11.00 9.84 8.53 6.66 7.83 78 9.09 66 19.21 16.60 15.82 14.79 13.12 14.17 80 15.21 61 19.08 17.02 15.86 15.10 12.05 14.78 77 15.10 75 16.79 14.85 13.75 12.69 10.47 13.21 60 12.33 85 0% 5% 10% 15% 20% 25% 30% 35% 40% R1 R 1 R 1 R1 R1 R 1 R1 R1 R1 R1 R1 118 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 2017 2016 2015 2014 2013 2012 2011 2010 35.55 23.21 19.77 12.64 9.50 22.97 26 22.17 32 26.47 20.64 16.09 9.00 3.62 13.29 57 11.32 64 5.04 1.03 -1.65 -3.08 -8.24 -3.15 76 -1.38 44 10.83 8.07 5.15 3.07 -1.61 0.20 89 5.60 43 57.02 44.96 42.00 39.12 32.56 43.50 40 43.29 40 21.76 17.83 14.89 12.19 10.19 17.83 25 14.59 55 10.20 4.27 1.69 -1.64 -6.88 4.27 25 -2.92 85 39.41 32.18 28.42 25.59 18.26 -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% R 1 R 1 R 1 R 1 R 1 R 1 R 1 119 City of Clearwater Employees Pension Fund December 31, 2017 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 Mar 15 Dec 17 Dec 14 Sep 17 Sep 14 Jun 17 Jun 14 Mar 17 Mar 14 Dec 16 14.30 12.52 10.56 9.26 6.17 10.50 50 10.28 54 15.97 14.54 12.53 11.06 7.45 13.00 43 12.17 59 12.13 10.56 8.11 7.10 3.82 10.09 26 7.64 65 11.82 9.62 7.89 5.79 3.55 6.20 72 6.72 65 11.24 8.81 6.80 3.42 1.84 3.21 77 5.05 63 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% R 1 R 1 R 1 R 1 R 1 Riverbridge Partners Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% -0.9 1.1 0.3 -0.4 -1.4 -4.0 -0.4 0.7 -4.1 -0.8 5.0 -1.7 1.9 3.3 -1.6 -1.8 2.4 4.2 -4.8 -0.9 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. R2000G 120 City of Clearwater Employees Pension Fund Risk Measure Summary Riverbridge Partners Quarterly Periods Ending 12/31/17 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 1.13 8.79 22.97 22.97 7.23 0.77 1.34 0.23 3.06 28.63 8.37 0.07 0 4 4.39 6.22 22.17 22.17 1.66 12.80 2 10 0.86 0.66 0.42 -8.67 8.79 -7.97 28.26 9.90 0.70 0.76 0.70 1.02 14.47 6.52 -0.03 2 10 -13.06 9.22 -11.84 24.40 11.92 0.83 5 15 0.87 0.77 0.40 -8.67 13.10 -7.97 43.50 11.91 0.86 0.27 0.82 1.17 16.18 5.38 -0.22 3 17 -13.06 13.20 -11.84 43.29 12.55 1.19 6 23 0.87 0.64 0.41 -15.89 16.39 -7.97 43.50 14.09 0.80 0.82 0.88 1.06 18.70 5.93 0.02 6 23 -22.26 17.11 -11.84 43.29 16.65 0.85 121 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Growth Portfolios Annualized Rate of Return5.0 6.2 7.4 8.6 9.8 11.0 12.2 13.4 14.6 15.8 17.0 4.0 5.5 7.0 8.5 10.0 11.5 13.0 14.5 16.0 17.5 19.0 R 1MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Riverbridge Partners 1 R2000G Median 10.50 60 9.90 31 10.28 66 11.92 61 11.36 11.17 Annualized Rate of Return6.0 7.1 8.2 9.3 10.4 11.5 12.6 13.7 14.8 15.9 17.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 R 1MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Riverbridge Partners 1 R2000G Median 14.17 80 11.91 55 15.21 61 12.55 71 15.82 11.72 122 City of Clearwater Employees Pension Fund Equity Summary Statistics Riverbridge Partners Period Ending 12/17 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 51 28,495,063 3,345,017 2,385,587 0.48 59.44 41.99 1.10 4.18 16.76 7.14 1,173 2,736,869 1,098,192 0.66 103.63 19.82 1.18 4.48 41.12 7.93 Ten Largest Holdings Grand Canyon Ed Inc Proto Labs Inc Chemed Corp New Ritchie Bros Auction Five Below Inc Health Care Group In National Instrs Corp Heico Corp New Pegasystems Inc Ultimate Software Gr Market Value % of Portfolio Quarterly Ret 1,326,835 1,244,755 969,650 928,399 911,568 887,383 871,815 840,281 754,447 729,106 4.66 4.37 3.40 3.26 3.20 3.11 3.06 2.95 2.65 2.56 -1.42 28.27 20.42 -4.73 20.85 -1.94 -0.82 5.06 -18.16 15.10 Ten Best Performers Proto Labs Inc Beacon Roofing Suppl Freshpet Inc Five Below Inc Chemed Corp New United Nat Foods Inc Cabot Microelectroni U S Physical Therapy Calavo Growers Inc Globant S A Quarterly Ret 28.27 24.41 21.09 20.85 20.42 18.47 17.95 17.84 16.80 15.95 Ten Worst Performers Evolent Health Inc Pegasystems Inc Alarm Com Hldgs Inc Dorman Products Inc Sps Comm Inc Stratasys Ltd Financial Engines In Inovalon Hldgs Inc Innerworkings Inc Digi Intl Inc Quarterly Ret -30.90 -18.16 -16.45 -14.63 -14.32 -13.67 -12.59 -12.02 -10.84 -9.91 123 City of Clearwater Employees Pension Fund Equity Contribution to Return Riverbridge Partners Period Ending 12/17 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 51 28,495,063 3,345,017 2,385,587 0.48 59.44 41.99 1.10 4.18 16.76 7.14 1,173 2,736,869 1,098,192 0.66 103.63 19.82 1.18 4.48 41.12 7.93 Ten Best Contributors Proto Labs Inc Chemed Corp New Five Below Inc Beacon Roofing Suppl United Nat Foods Inc Ultimate Software Gr Freshpet Inc 2u Inc Calavo Growers Inc Pra Group Inc Market Value % of Portfolio Quarterly Ret 1,244,755 969,650 911,568 556,944 713,183 729,106 517,771 690,257 592,319 600,754 4.37 3.40 3.20 1.95 2.50 2.56 1.82 2.42 2.08 2.11 28.27 20.42 20.85 24.41 18.47 15.10 21.09 15.11 16.80 15.88 Ten Worst Contributors Pegasystems Inc Evolent Health Inc Alarm Com Hldgs Inc Sps Comm Inc Dorman Products Inc Financial Engines In Ritchie Bros Auction Stratasys Ltd Inovalon Hldgs Inc Heska Corp Market Value % of Portfolio Quarterly Ret 754,447 333,724 461,003 491,585 361,276 370,539 928,399 265,368 235,275 245,362 2.65 1.17 1.62 1.73 1.27 1.30 3.26 0.93 0.83 0.86 -18.16 -30.90 -16.45 -14.32 -14.63 -12.59 -4.73 -13.67 -12.02 -8.95 124 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Riverbridge Partners Quarter Ending 12/17 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 22.41 13.39 5.69 17.98 3.48 37.04 0.00 0.00 100.00 1.23 4.63 17.94 13.48 2.66 24.51 6.06 24.29 1.09 0.70 100.00 6.20 2.62 18.64 3.80 3.05 1.08 3.99 8.64 3.93 7.60 8.46 8.46 3.08 6.02 1.35 -2.04 6.05 4.49 0.00 0.00 -0.31 -0.78 0.58 0.13 -0.10 -0.10 0.00 0.00 -0.59 -0.05 0.03 0.14 -0.00 0.12 0.09 -0.04 -0.40 0.07 -0.01 -0.06 -0.05 0.03 -0.17 -0.79 0.70 0.22 -0.14 -0.50 0.07 -0.01 -0.65 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 -0.07% [ Actual Return 3.92% ] - [ Buy Hold Return 3.99% ] 125 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Riverbridge Partners Quarter Ending 12/17 % Allocation Energy 0.00 1.23 Materials 0.00 4.63 Industrials 22.41 17.94 Con. Discretionary 13.39 13.48 Consumer Staples 5.69 2.66 Health Care 17.98 24.51 Financials 3.48 6.06 Infomation Tech. 37.04 24.29 Telecom. Services 0.00 1.09 Utilities 0.00 0.70 Riverbridge Partners R2000G % Return 8.64 3.93 6.20 7.60 2.62 8.46 18.64 8.46 3.80 3.08 3.05 6.02 1.08 1.35 -2.04 6.05 % Variance -0.05 0.03 -0.17 -0.79 0.70 0.22 -0.14 -0.50 0.07 -0.01 126 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 12/31/17 Manhattan Assocs Inc Wex Inc Corelogic Inc Blackbaud Inc Choice Hotels Intl I Morningstar Inc Exponet Inc Aptargroup Inc Columbia Sportswear Fair Isaac Corp GICS Sector % Port Information Technology Information Technology Information Technology Information Technology Consumer Discretionary Financials Industrials Materials Consumer Discretionary Information Technology 4.33 3.82 3.50 3.41 3.19 3.12 2.81 2.81 2.80 2.74 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 1.06 5.36 19.23 16.42 7.78 6.28 19.34 24.54 0.00 0.00 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 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 5.03 3.34 13,511 28 679 14,218 13.34 14.65 15,409 -2,889 1,698 14,218 13.34 14.65 15,409 -2,889 1,698 14,218 11.98 9.96 15,835 -6,760 5,144 14,218 15.66 13.97 12,220 -8,762 10,760 14,218 12.68 8.63 18,250 -20,764 16,732 14,218 12.70 9.67 14,990 -20,764 19,992 14,218 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 127 City of Clearwater Employees Pension Fund Atlanta Capital Mgmt as of 12/31/17 Cash & Equiv $612 4.30% Domestic Equity $13,606 95.70% Periods from 8/03 to 12/17 Alpha Beta R-Squared 1.23 0.73 0.90 Annualized Return% 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 t 1 T Annualized Standard Deviation% t Atlanta Capital Mgmt 1 Russell 2000 T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 12.70 9.67 1.28 15.22 18.17 0.50 0.75 0.46 0.00 0.30 Asset Allocation ($000) Risk/Return Analysis 128 City of Clearwater Employees Pension Fund Small Neutral Cumulative Performance Comparisons Total Returns of Equity Portfolios Periods Ending 12/17 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 7.46 5.10 3.80 3.32 2.14 5.03 28 3.34 73 25.14 15.01 11.55 10.18 6.23 13.34 42 14.65 28 24.14 19.59 18.30 17.37 16.29 15.65 97 17.93 54 16.54 11.18 10.09 9.96 7.73 11.98 17 9.96 75 13.78 10.28 9.38 8.61 6.38 9.80 35 8.67 64 18.84 15.52 14.63 13.84 12.25 15.66 18 13.97 70 18.57 15.68 15.24 14.49 12.89 15.13 62 14.64 70 14.77 12.74 12.42 11.72 10.02 14.42 10 11.52 80 16.71 14.62 14.23 13.05 12.11 15.80 13 13.06 67 19.02 17.48 16.20 15.23 14.69 16.98 39 13.87 99 12.25 11.45 10.66 9.35 8.76 12.68 1 8.63 99 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% t 1 t 1 t 1 t 1 t 1 t 1 t1 t 1 t 1 t 1 t 1 129 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 25.14 15.01 11.55 10.18 6.23 13.34 42 14.65 28 31.90 27.74 24.68 22.50 16.00 18.02 87 21.31 77 1.60 -1.76 -3.29 -5.78 -13.65 4.97 1 -4.41 65 8.90 6.68 5.12 2.26 -3.52 3.50 68 4.89 55 47.27 42.70 39.58 36.96 32.69 42.43 26 37.88 69 23.40 18.47 16.76 14.41 11.08 12.53 89 18.05 38 3.41 -1.26 -3.11 -5.57 -10.19 10.20 1 -5.50 70 33.58 30.70 26.79 24.51 20.47 25.98 61 24.51 75 76.99 42.13 35.72 27.36 23.39 26.83 77 20.57 99 -22.78 -30.16 -32.45 -34.45 -40.05 -19.52 1 -28.92 16 -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% t1 t1 t 1 t1 t1 t 1 t 1 t1 t 1 t 1 130 City of Clearwater Employees Pension Fund December 31, 2017 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 Mar 15 Dec 17 Dec 14 Sep 17 Sep 14 Jun 17 Jun 14 Mar 17 Mar 14 Dec 16 15.78 11.84 10.32 9.96 6.79 11.98 21 9.96 76 16.64 13.82 12.12 11.57 8.05 13.75 25 12.18 44 11.22 8.91 8.06 6.96 3.81 10.47 6 7.36 59 10.87 9.19 8.09 7.16 4.98 9.37 22 7.22 73 10.37 9.25 7.70 6.88 5.48 8.64 41 6.74 79 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% t 1 t 1 t 1 t 1 t 1 Atlanta Capital Mgmt Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -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% 0.2 1.2 0.0 1.8 -2.1 -1.8 2.3 0.3 2.3 1.0 5.2 1.1 5.4 0.1 -6.2 -1.7 -1.4 0.7 -2.1 1.6 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. Russell 2000 131 City of Clearwater Employees Pension Fund Risk Measure Summary Atlanta Capital Mgmt Quarterly Periods Ending 12/31/17 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 1.06 5.03 13.34 13.34 3.26 0.68 0.76 0.49 3.82 18.41 3.64 -0.34 0 4 2.46 5.67 14.65 14.65 3.03 4.56 1 11 0.88 0.29 0.67 -7.38 7.00 2.12 18.02 7.47 0.57 1.45 0.67 1.55 20.40 6.47 0.21 2 10 -11.92 9.05 -9.76 26.22 10.92 0.87 3 17 0.93 0.45 0.70 -7.38 11.87 2.12 42.43 9.99 0.77 1.11 0.80 1.54 19.93 5.29 0.23 3 17 -11.92 11.63 -9.76 37.88 11.63 1.18 14 43 0.89 0.57 0.61 -16.60 18.00 -24.55 52.53 14.18 0.73 1.23 0.90 0.83 16.14 6.78 0.30 15 42 -24.89 22.70 -38.89 65.05 18.50 0.46 132 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Small Neutral Portfolios Annualized Rate of Return6.0 6.9 7.8 8.7 9.6 10.5 11.4 12.3 13.2 14.1 15.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 t 1MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank t Atlanta Capital Mgmt 1 Russell 2000 Median 11.98 17 7.47 2 9.96 75 10.92 70 10.09 10.10 Annualized Rate of Return9.0 9.45 9.9 10.35 10.8 11.25 11.7 12.15 12.6 13.05 13.5 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 t 1MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank t Atlanta Capital Mgmt 1 Russell 2000 Median 15.66 18 9.99 2 13.97 70 11.63 66 14.63 11.24 133 City of Clearwater Employees Pension Fund Equity Summary Statistics Atlanta Capital Mgmt Period Ending 12/17 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 56 13,606,283 3,383,897 3,017,663 0.96 33.40 29.16 1.02 4.14 50.35 7.38 1,978 2,467,485 932,210 1.22 58.46 18.21 1.15 2.33 47.64 4.64 Ten Largest Holdings Manhattan Assocs Inc Wex Inc Corelogic Inc Blackbaud Inc Choice Hotels Intl I Morningstar Inc Exponet Inc Aptargroup Inc Columbia Sportswear Fair Isaac Corp Market Value % of Portfolio Quarterly Ret 589,377 519,161 476,009 463,473 433,784 423,856 382,518 382,220 380,892 371,970 4.33 3.82 3.50 3.41 3.19 3.12 2.81 2.81 2.80 2.74 19.17 25.85 -0.02 7.75 21.78 14.40 -3.52 0.33 17.07 9.04 Ten Best Performers Wex Inc Beacon Roofing Suppl Artisan Partners Ass Choice Hotels Intl I Pool Corporation Manhattan Assocs Inc Huron Consulting Gro Columbia Sportswear ICU Med Inc J & J Snack Foods Co Quarterly Ret 25.85 24.41 23.17 21.78 20.23 19.17 17.93 17.07 16.22 15.99 Ten Worst Performers Eplus Inc Scansource Inc Navigators Group Inc Dorman Products Inc Patterson Companies Stepan Chem Co Iberiabank Corp Integra Lifesciences US Ecology Inc Sensient Technologie Quarterly Ret -18.66 -17.98 -16.44 -14.63 -5.87 -5.35 -5.21 -5.19 -4.89 -4.48 134 City of Clearwater Employees Pension Fund Equity Contribution to Return Atlanta Capital Mgmt Period Ending 12/17 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 56 13,606,283 3,383,897 3,017,663 0.96 33.40 29.16 1.02 4.14 50.35 7.38 1,978 2,467,485 932,210 1.22 58.46 18.21 1.15 2.33 47.64 4.64 Ten Best Contributors Wex Inc Manhattan Assocs Inc Choice Hotels Intl I Columbia Sportswear Beacon Roofing Suppl Morningstar Inc Pool Corporation Artisan Partners Ass J & J Snack Foods Co Blackbaud Inc Market Value % of Portfolio Quarterly Ret 519,161 589,377 433,784 380,892 255,805 423,856 268,764 211,799 239,284 463,473 3.82 4.33 3.19 2.80 1.88 3.12 1.98 1.56 1.76 3.41 25.85 19.17 21.78 17.07 24.41 14.40 20.23 23.17 15.99 7.75 Ten Worst Contributors Dorman Products Inc Navigators Group Inc Eplus Inc Scansource Inc Exponet Inc Integra Lifesciences Iberiabank Corp Sally Beauty Hldgs I Patterson Companies US Ecology Inc Market Value % of Portfolio Quarterly Ret 237,773 202,056 129,795 112,877 382,518 206,564 191,115 230,035 137,005 144,381 1.75 1.49 0.95 0.83 2.81 1.52 1.41 1.69 1.01 1.06 -14.63 -16.44 -18.66 -17.98 -3.52 -5.19 -5.21 -4.19 -5.87 -4.89 135 City of Clearwater Employees Pension Fund Equity Sector Attribution Analysis Atlanta Capital Mgmt Quarter Ending 12/17 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 1.02 5.71 23.26 14.80 7.62 6.76 18.11 22.73 0.00 0.00 100.00 3.72 4.43 15.01 11.93 2.68 15.54 18.13 16.89 0.83 3.61 100.00 8.04 -1.43 5.02 8.98 7.15 4.77 3.86 7.56 5.78 7.05 3.97 6.41 7.85 7.01 2.40 1.68 0.93 -3.97 0.93 3.36 0.01 -0.31 -0.32 0.17 0.01 0.16 0.39 1.51 0.00 0.00 1.62 -0.10 0.01 0.25 0.13 0.18 0.08 0.00 -0.14 0.06 0.09 0.56 -0.09 -0.30 -0.07 0.30 0.19 0.24 0.40 1.36 0.06 0.09 2.18 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 -0.36% [ Actual Return 5.43% ] - [ Buy Hold Return 5.78% ] 136 City of Clearwater Employees Pension Fund Equity Sector Attribution Chart Atlanta Capital Mgmt Quarter Ending 12/17 % Allocation Energy 1.02 3.72 Materials 5.71 4.43 Industrials 23.26 15.01 Con. Discretionary 14.80 11.93 Consumer Staples 7.62 2.68 Health Care 6.76 15.54 Financials 18.11 18.13 Infomation Tech. 22.73 16.89 Telecom. Services 0.00 0.83 Utilities 0.00 3.61 Atlanta Capital Mgmt Russell 2000 % Return 8.04 7.05 -1.43 3.97 5.02 6.41 8.98 7.85 7.15 7.01 4.77 2.40 3.86 1.68 7.56 0.93 -3.97 0.93 % Variance -0.09 -0.30 -0.07 0.30 0.19 0.24 0.40 1.36 0.06 0.09 137 City of Clearwater Employees Pension Fund Sycamore Small Cap Value as of 12/31/17 -1.0 -0.9 -0.8 -0.7 -0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0.0 0.1 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 11/30/17 Sycamore Small Cap Value Russell 2000 Value Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 11/30/17 Sycamore Small Cap Value Russell 2000 Value Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value -0.61 -0.95 13,915 15 -85 13,846 Portfolio Performance (%) 138 City of Clearwater Employees Pension Fund Sycamore Small Cap Value as of 12/31/17 Cash & Equiv $568 4.10% Domestic Equity $13,278 95.90% Periods from 9/17 to 12/17 Alpha Beta R-Squared N/A N/A N/A Annualized Return% 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 -1.0 -0.9 -0.8 -0.7 -0.6 -0.5 -0.4 -0.3 -0.2 -0.0999999 0.0 0.1 0.2 S 1 T Annualized Standard Deviation% S Sycamore Small Cap Value 1 Russell 2000 Value T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio -0.61 -0.95 0.11 1.49 2.34 0.26 -0.48 -0.45 0.00 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 139 City of Clearwater Employees Pension Fund Risk Measure Summary Sycamore Small Cap Value Quarterly Periods Ending 12/31/17 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 0 0.00 -0.61 -0.61 0 0 140 City of Clearwater Employees Pension Fund International EQ Comp as of 12/31/17 Aia Group Ltd Csl Ltd Chubb Limited Atlas Copco Ab Experian Plc Accenture Plc Irelan Taiwan Semiconductor Canadian Pac Railway Dsv As Reckitt Benckiser Pl GICS Sector % Port Financials Health Care Financials Industrials Industrials Information Technology Information Technology Industrials Industrials Consumer Staples 2.49 2.38 2.15 2.13 2.12 2.11 2.07 2.06 2.06 1.99 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 2.96 7.35 16.73 15.33 10.86 11.59 18.45 12.02 3.11 1.59 -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 5/31/01 International EQ Comp MSCI ACWI ex US (Net) Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 5/31/01 International EQ Comp MSCI ACWI ex US (Net) Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.79 5.00 183,216 250 8,671 192,136 27.97 27.19 165,383 -17,967 44,720 192,136 27.97 27.19 165,383 -17,967 44,720 192,136 5.82 8.35 113,227 42,325 36,584 192,136 4.29 8.42 108,811 42,275 41,050 192,136 1.84 2.44 109,243 32,559 50,334 192,136 5.24 5.86 20,000 32,559 139,577 192,136 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 141 City of Clearwater Employees Pension Fund International EQ Comp as of 12/31/17 Cash & Equiv $6,279 3.27% Intl Equity $185,858 96.73% Periods from 5/01 to 12/17 Alpha Beta R-Squared -0.15 1.02 0.94 Annualized Return% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 I 1 T Annualized Standard Deviation% I International EQ Comp 1 MSCI ACWI ex US (N T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.24 5.86 1.39 17.08 16.68 0.49 0.23 0.27 0.00 -0.12 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 142 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low I International EQ Comp Net Ret Rank 1 MSCI ACWI ex US (Net) 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 8.77 6.30 4.99 4.00 1.21 4.79 55 5.00 49 43.16 33.22 27.69 23.90 13.38 27.97 48 27.19 54 25.81 18.71 15.56 13.06 9.32 14.69 58 15.29 53 15.55 11.64 9.61 8.21 5.35 5.82 93 8.35 72 11.88 8.80 6.80 5.14 3.04 2.85 95 4.99 77 15.71 12.07 9.34 7.45 3.94 4.29 94 8.42 62 16.84 13.18 11.03 9.29 6.33 6.40 94 9.94 64 13.12 9.58 7.52 5.97 2.51 3.03 93 6.55 65 13.94 10.43 8.35 6.71 4.66 4.84 94 6.75 74 17.17 13.73 11.72 10.18 8.29 9.72 79 9.34 82 9.30 6.18 4.39 2.89 1.11 1.84 90 2.44 83 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% I1 I1 I1 I 1 I 1 I 1 I 1 I 1 I 1 I1 I1 143 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 ACWI ex US (Net) Net Ret Rank 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 43.16 33.22 27.69 23.90 13.38 27.97 48 27.19 54 18.46 8.19 4.01 0.64 -4.28 2.78 57 4.50 47 10.81 2.32 -1.15 -6.33 -16.63 -9.91 82 -4.29 67 10.58 1.79 -2.41 -4.96 -9.63 -5.56 79 -4.48 69 34.21 26.08 19.91 11.74 -5.13 10.23 76 23.29 34 26.71 21.25 18.55 15.41 6.48 17.61 58 17.90 55 0.63 -8.52 -12.38 -15.63 -22.21 -15.04 70 -11.73 43 26.86 18.77 13.28 8.96 3.37 18.37 26 8.21 78 78.63 45.61 35.60 27.34 12.82 57.93 14 32.46 60 -24.22 -39.20 -43.25 -47.81 -55.76 -47.94 76 -43.06 47 -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% I1 I1 I 1 I1 I 1 I1 I1 I 1 I 1 I1 144 City of Clearwater Employees Pension Fund Risk Measure Summary International EQ Comp Quarterly Periods Ending 12/31/17 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 1.03 0.50 4.74 9.11 27.97 27.97 4.15 1.08 -0.30 0.91 6.54 25.14 2.50 0.27 0 4 5.00 7.86 27.19 27.19 2.41 10.92 3 9 0.84 1.07 0.33 -12.78 9.11 -9.91 27.97 11.52 0.99 -0.56 0.91 0.47 5.47 3.51 -0.68 4 8 -12.17 7.86 -10.24 27.19 11.04 0.72 6 14 0.81 1.27 0.35 -12.78 9.11 -18.63 27.97 11.08 0.95 -0.87 0.87 0.36 4.24 4.05 -0.97 7 13 -12.17 11.61 -10.57 27.19 10.84 0.75 22 44 0.99 1.03 0.45 -26.42 31.05 -47.94 71.81 20.00 1.02 -0.15 0.94 0.20 3.99 4.76 -0.11 23 43 -20.50 25.85 -46.20 58.14 18.97 0.25 145 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of International Equity Portfolios Annualized Rate of Return2.0 3.8 5.6 7.4 9.2 11.0 12.8 14.6 16.4 18.2 20.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 I 1Median RiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank I International EQ Comp 1 MSCI ACWI ex US (Net) Median 5.82 93 11.52 60 8.35 72 11.04 53 9.61 10.97 Annualized Rate of Return5.0 6.2 7.4 8.6 9.8 11.0 12.2 13.4 14.6 15.8 17.0 0.0 1.8 3.6 5.3 7.2 9.0 10.8 12.6 14.4 16.2 18.0 I 1Median RiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank I International EQ Comp 1 MSCI ACWI ex US (Net) Median 4.29 94 11.08 56 8.42 62 10.84 53 9.34 10.82 146 City of Clearwater Employees Pension Fund WCM Investment Management as of 12/31/17 Aia Group Ltd Csl Ltd Chubb Limited Atlas Copco Ab Experian Plc Accenture Plc Irelan Taiwan Semiconductor Canadian Pac Railway Dsv As Reckitt Benckiser Pl GICS Sector % Port Financials Health Care Financials Industrials Industrials Information Technology Information Technology Industrials Industrials Consumer Staples 5.08 4.87 4.40 4.36 4.34 4.32 4.22 4.22 4.20 4.06 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 2.65 6.57 19.07 17.59 11.92 13.44 13.37 15.38 0.00 0.00 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/15 WCM Investment Management MSCI ACWI ex US (Net) Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/15 WCM Investment Management MSCI ACWI ex US (Net) Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.67 5.00 72,410 123 3,380 75,913 33.22 27.19 65,638 -10,494 20,769 75,913 33.22 27.19 65,638 -10,494 20,769 75,913 11.08 8.15 16,316 40,826 18,771 75,913 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 147 City of Clearwater Employees Pension Fund WCM Investment Management as of 12/31/17 Cash & Equiv $5,198 6.85% Intl Equity $70,714 93.15% Periods from 6/15 to 12/17 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -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 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 w 1 T Annualized Standard Deviation% w WCM Investment Managemen 1 MSCI ACWI ex US (N T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 11.08 8.15 0.51 11.39 12.38 0.11 0.93 0.62 0.00 0.39 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 148 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low w WCM Investment Management Net Ret Rank 1 MSCI ACWI ex US (Net) Net Ret Rank Last Qtr Last Year Last 2 Years 8.77 6.30 4.99 4.00 1.21 4.67 58 5.00 49 43.16 33.22 27.69 23.90 13.38 33.22 25 27.19 54 25.81 18.71 15.56 13.06 9.32 14.84 57 15.29 53 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% w 1 w 1 w 1 149 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 w WCM Investment Management Net Ret Rank 1 MSCI ACWI ex US (Net) Net Ret Rank 2017 2016 43.16 33.22 27.69 23.90 13.38 33.22 25 27.19 54 18.46 8.19 4.01 0.64 -4.28 -1.00 83 4.50 47 -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% w 1 w 1 150 City of Clearwater Employees Pension Fund Global Equity Summary Statistics WCM Investment Management Period Ending 12/17 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 ACWI ex US (Net) 31 70,714,259 30,221,795 30,221,795 1.17 35.28 35.97 0.00 2.22 59.88 10.29 8.97 1,862 63,033,807 8,438,289 2.78 20.99 18.94 1.00 1.81 75.51 9.10 9.26 Ten Largest Holdings Aia Group Ltd Csl Ltd Chubb Limited Atlas Copco Ab Experian Plc Accenture Plc Irelan Taiwan Semiconductor Canadian Pac Railway Dsv As Reckitt Benckiser Pl Market Value % of Portfolio Quarterly Ret 3,591,012 3,440,677 3,110,962 3,082,499 3,066,520 3,051,237 2,983,464 2,982,643 2,969,091 2,869,579 5.08 4.87 4.40 4.36 4.34 4.32 4.22 4.22 4.20 4.06 15.11 4.47 3.01 2.06 8.62 14.44 5.59 9.03 4.03 2.15 Ten Best Performers Sysmex Corp Tencent Hldgs Ltd Aia Group Ltd Pernod Ricard S A Accenture Plc Irelan Core Laboratories N Essilor Intl S A Novozymes A/S Chr Hansen Hldg A/S Luxottica Group S P Quarterly Ret 23.36 18.23 15.11 14.87 14.44 11.68 11.15 10.98 10.18 9.76 Ten Worst Performers Adidas Salomon Ag Industria De Diseno Ferrari N V Coloplast A/S Icon Plc Ryanair Hldgs Plc Yandex N V Compass Group Plc Atlas Copco Ab Reckitt Benckiser Pl Quarterly Ret -11.82 -7.08 -5.10 -1.66 -1.52 -1.17 -0.61 1.57 2.06 2.15 151 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WCM Investment Management Quarter Ending 12/17 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 Bulgaria Canada Cayman Islands Chile China Colombia Czech Republic Denmark Egypt Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland Isle of Man Israel Italy Japan Jordan Luxembourg Macau 4.94 0.18 0.82 0.09 1.82 0.07 6.65 1.73 0.30 4.76 0.11 0.04 1.30 0.03 0.69 7.09 6.75 0.08 2.59 0.08 2.03 0.55 0.36 0.05 0.33 1.52 15.99 0.01 0.11 0.10 4.94 0.18 0.82 0.09 1.82 0.07 6.65 1.73 0.30 4.76 0.11 0.04 1.30 0.03 0.69 7.09 6.75 0.08 2.59 0.08 2.03 0.55 0.36 0.05 0.33 1.52 15.99 0.01 0.11 0.10 7.44 4.19 -2.76 -8.46 2.79 -6.47 4.49 4.68 3.28 10.76 2.43 4.19 4.79 -1.39 -4.06 0.00 0.98 11.74 7.29 5.26 9.27 8.88 2.25 15.69 4.76 -4.37 8.56 -6.36 -0.38 14.72 7.32 5.83 -1.23 -5.62 -1.98 -5.00 4.30 1.80 7.33 10.01 0.79 7.75 2.40 -2.11 -2.55 1.58 2.58 13.50 6.96 7.08 11.82 8.09 3.79 19.68 4.00 -2.87 8.47 -5.58 -5.20 14.63 4.83 0.00 0.00 0.00 0.00 0.00 4.02 8.38 0.00 0.00 0.00 0.00 10.16 0.00 0.00 8.33 2.58 0.00 3.61 0.00 3.82 0.00 6.70 0.00 0.00 1.87 1.48 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 4.47 9.03 5.38 4.54 7.65 -11.82 15.11 5.50 7.88 9.76 23.36 4.47 9.03 5.38 4.54 7.65 -11.82 15.11 5.50 7.88 9.76 23.36 -0.00 0.00 0.06 0.01 0.03 0.01 -0.00 0.02 0.00 -0.30 0.00 0.00 0.03 0.00 0.06 -0.06 0.14 -0.01 0.03 -0.00 0.09 -0.02 -0.14 -0.01 -0.00 -0.03 -0.60 0.00 0.01 -0.01 0.04 -0.00 -0.01 -0.00 0.10 -0.00 0.06 0.06 -0.01 0.07 0.00 -0.00 0.04 0.00 -0.01 -0.07 -0.06 -0.00 0.03 -0.00 -0.04 0.01 -0.00 -0.00 0.00 -0.01 0.11 -0.00 0.01 0.00 -0.14 0.18 0.06 -0.03 0.64 -0.33 0.28 -0.14 0.38 0.26 0.22 -0.11 -0.00 0.05 0.01 0.13 0.01 0.24 0.14 -0.01 -0.24 0.00 -0.00 0.05 0.00 0.05 0.52 -0.25 -0.01 0.34 -0.00 -0.10 -0.02 0.24 -0.01 0.00 0.22 -0.26 0.00 0.01 -0.01 Benchmark : MSCI ACWI ex US (Net) 152 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis WCM Investment Management Quarter Ending 12/17 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 Malaysia Mexico Netherlands New Zealand Norway Pakistan Papua-New Guinea Peru Philippines Poland Portugal Qatar Russia Scotland Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey United Arab Emirates United Kingdom United States Zambia 0.55 0.85 3.01 0.11 0.48 0.02 0.04 0.08 0.27 0.32 0.11 0.14 0.79 0.03 0.89 1.68 3.60 2.40 2.01 5.73 2.76 0.54 0.27 0.17 11.76 0.23 0.04 100.00 0.55 0.85 3.01 0.11 0.48 0.02 0.04 0.08 0.27 0.32 0.11 0.14 0.79 0.03 0.89 1.68 3.60 2.40 2.01 5.73 2.76 0.54 0.27 0.17 11.76 0.23 0.04 100.00 2.67 -0.85 1.00 1.84 5.08 -0.70 11.29 4.61 4.64 1.08 -3.49 4.68 10.01 8.04 7.93 11.17 3.95 -2.92 -3.51 2.49 2.34 6.89 11.31 -5.89 4.59 3.75 25.70 4.44 7.12 -7.73 2.28 0.19 2.27 -5.22 10.93 4.61 6.48 6.00 -1.97 4.65 5.91 8.93 9.42 20.26 11.21 -1.39 -3.80 1.76 4.28 9.38 4.39 -4.59 5.46 3.75 25.47 5.07 0.00 2.47 5.54 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 4.45 8.53 4.14 0.00 0.00 0.00 12.15 6.95 0.00 100.00 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 0.00 100.00 0.00 100.00 7.13 4.87 2.06 2.69 5.59 4.17 1.25 5.23 7.13 4.87 2.06 2.69 5.59 4.17 1.25 5.23 0.01 -0.09 -0.09 0.00 -0.00 0.00 -0.00 -0.00 -0.00 0.01 0.01 -0.00 -0.04 -0.00 -0.03 -0.11 0.02 0.18 -0.19 -0.05 -0.03 -0.01 -0.02 0.02 0.00 -0.05 -0.01 -1.17 -0.02 0.06 -0.02 0.00 0.02 0.00 0.00 0.00 -0.00 -0.01 -0.00 0.00 0.04 -0.00 -0.01 -0.14 -0.24 -0.02 0.02 0.08 -0.04 -0.01 0.02 -0.00 -0.03 -0.64 0.00 -0.64 0.20 0.21 0.25 0.02 0.13 -0.05 -0.17 1.96 -0.01 0.18 0.11 0.01 0.01 0.00 -0.00 0.00 -0.00 -0.00 0.01 0.00 -0.01 -0.00 -0.04 -0.25 -0.22 0.15 0.07 0.04 0.07 -0.02 0.00 0.02 -0.08 -0.85 -0.01 0.15 Benchmark : MSCI ACWI ex US (Net) 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] 153 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis WCM Investment Management Quarter Ending 12/17 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 2.47 6.18 16.79 21.28 10.67 14.30 11.88 16.42 0.00 0.00 100.00 6.63 7.85 11.79 11.27 9.59 7.89 23.31 11.20 4.20 3.08 100.00 11.68 10.58 5.84 -2.00 3.37 5.14 7.49 10.61 5.23 7.56 8.26 4.74 6.16 5.52 1.27 4.73 6.29 1.56 -0.36 4.90 0.10 0.14 0.18 -1.74 -0.23 0.55 0.33 0.71 0.00 0.00 0.05 -0.11 -0.06 -0.01 0.13 0.01 -0.23 0.02 0.07 0.14 0.16 0.12 -0.01 0.09 0.18 -1.61 -0.22 0.32 0.35 0.78 0.14 0.16 0.17 Index - MSCI ACWI ex US (Net) Stock Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect -0.06% [ Actual Return 5.16% ] - [ Buy Hold Return 5.23% ] 154 City of Clearwater Employees Pension Fund DFA Emerging Markets as of 12/31/17 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 10/31/17 DFA Emerging Markets MSCI Emg Mkts (Gross) Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 10/31/17 DFA Emerging Markets MSCI Emg Mkts (Gross) Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 4.39 3.85 39,577 0 1,736 41,313 Portfolio Performance (%) 155 City of Clearwater Employees Pension Fund DFA Emerging Markets as of 12/31/17 Cash & Equiv $1 0.00% Intl Equity $41,312 100.00% Periods from 9/17 to 12/17 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 D 1 T Annualized Standard Deviation% D DFA Emerging Markets 1 MSCI Emg Mkts (Gross) T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 4.39 3.85 0.19 7.62 8.41 0.06 0.55 0.44 0.00 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 156 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis DFA Emerging Markets Quarter Ending 12/17 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 Bulgaria Cayman Islands China Denmark Finland France Germany Hong Kong Ireland Isle of Man Israel Italy Japan Jordan Luxembourg Macau Mexico Netherlands New Zealand Norway Papua-New Guinea Portugal Scotland Singapore South Africa Spain 7.13 0.25 1.18 0.10 0.09 0.30 0.04 1.86 1.00 10.23 9.74 2.82 0.52 0.04 0.48 2.20 23.10 0.02 0.15 0.14 0.03 4.34 0.16 0.70 0.05 0.16 0.04 1.29 0.24 3.46 7.13 0.25 1.18 0.10 0.09 0.30 0.04 1.86 1.00 10.23 9.74 2.82 0.52 0.04 0.48 2.20 23.10 0.02 0.15 0.14 0.03 4.34 0.16 0.70 0.05 0.16 0.04 1.29 0.24 3.46 7.44 4.19 -2.76 -4.12 -6.47 3.47 -2.85 0.77 -4.06 0.00 0.98 7.40 2.25 11.97 4.76 -4.37 8.56 -6.36 -0.38 14.72 1.71 1.00 1.84 5.08 11.29 -3.49 8.04 7.93 10.03 -2.92 7.32 5.83 -1.23 -4.12 -5.00 5.50 -2.93 2.31 -2.55 1.58 2.58 6.99 3.79 13.77 4.00 -2.87 8.47 -5.58 -5.20 14.63 2.55 2.28 0.19 2.27 10.93 -1.97 8.93 9.42 10.94 -1.39 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 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 -0.27 -0.00 0.08 0.01 0.01 0.00 0.00 0.05 0.08 0.38 0.27 -0.10 0.01 -0.00 -0.00 0.18 -1.12 0.00 0.01 -0.02 0.00 0.12 0.00 -0.01 -0.00 0.01 -0.00 -0.05 -0.01 0.23 0.05 -0.00 -0.01 0.00 -0.00 -0.00 0.00 -0.02 -0.01 -0.10 -0.10 0.03 -0.00 -0.00 0.01 -0.02 0.15 -0.00 0.01 0.00 -0.00 -0.03 0.00 0.02 0.00 -0.00 -0.00 -0.01 -0.00 -0.03 -0.22 -0.00 0.06 0.01 0.01 -0.00 0.00 0.04 0.07 0.28 0.17 -0.08 0.00 -0.00 0.00 0.16 -0.97 0.00 0.01 -0.01 0.00 0.09 0.01 0.01 -0.00 0.01 -0.00 -0.07 -0.02 0.20 Benchmark : MSCI EAFE (Net) 157 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis DFA Emerging Markets Quarter Ending 12/17 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 2.90 8.28 16.99 100.00 2.90 8.28 16.99 100.00 -3.51 2.49 4.59 3.72 -3.80 1.76 5.46 4.29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.21 0.10 -0.15 -0.00 0.03 0.11 -0.05 0.00 0.23 0.21 -0.20 0.00 Benchmark : MSCI EAFE (Net) 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] 158 City of Clearwater Employees Pension Fund Thompson, Siegel & Walmsley as of 12/31/17 Nestle Sa Novartis Ag Vivendi Sa Eni Spa Hitachi Infineon Technologie Heineken Holding Orix Corporation Siemens Ag Koninklijke Philips GICS Sector % Port Consumer Staples Health Care Consumer Discretionary Energy Information Technology Information Technology Consumer Staples Financials Industrials Health Care 2.19 2.19 2.05 1.93 1.73 1.72 1.71 1.69 1.68 1.66 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 3.26 8.10 14.48 13.16 9.86 9.82 23.31 8.80 6.09 3.12 -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 7/31/15 Thompson, Siegel & Walmsley MSCI EAFE (Net) Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 7/31/15 Thompson, Siegel & Walmsley MSCI EAFE (Net) Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 3.96 4.23 71,932 127 2,849 74,908 22.27 25.03 67,730 -7,421 14,599 74,908 22.27 25.03 67,730 -7,421 14,599 74,908 5.54 6.44 16,165 43,959 14,784 74,908 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 159 City of Clearwater Employees Pension Fund Thompson, Siegel & Walmsley as of 12/31/17 Cash & Equiv $1,077 1.44% Intl Equity $73,832 98.56% Periods from 6/15 to 12/17 Alpha Beta R-Squared N/A N/A N/A Annualized Return% -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 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 t 1 T Annualized Standard Deviation% t Thompson, Siegel & Walms 1 MSCI EAFE (Net) T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 5.54 6.44 0.51 12.39 12.41 0.11 0.41 0.48 0.00 -0.86 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 160 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of International Equity Portfolios Periods Ending 12/17 167 High 1st Qt Median 3rd Qt Low t Thompson, Siegel & Walmsley Net Ret Rank 1 MSCI EAFE (Net) Net Ret Rank Last Qtr Last Year Last 2 Years 8.77 6.30 4.99 4.00 1.21 3.96 75 4.23 69 43.16 33.22 27.69 23.90 13.38 22.27 82 25.03 69 25.81 18.71 15.56 13.06 9.32 10.47 91 12.37 81 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% t 1 t 1 t 1 161 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 t Thompson, Siegel & Walmsley Net Ret Rank 1 MSCI EAFE (Net) Net Ret Rank 2017 2016 43.16 33.22 27.69 23.90 13.38 22.27 82 25.03 69 18.46 8.19 4.01 0.64 -4.28 -0.19 80 1.00 72 -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% t 1 t 1 162 City of Clearwater Employees Pension Fund Global Equity Summary Statistics Thompson, Siegel & Walmsley Period Ending 12/17 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 (Net) 95 73,831,619 49,245,757 17,590,997 2.95 18.73 17.96 0.97 1.68 71.02 10.86 7.23 928 59,600,294 11,450,845 2.91 21.24 20.37 1.00 1.78 81.82 8.93 7.87 Ten Largest Holdings Nestle Sa Novartis Ag Vivendi Sa Eni Spa Hitachi Infineon Technologie Heineken Holding Orix Corporation Siemens Ag Koninklijke Philips Market Value % of Portfolio Quarterly Ret 1,616,665 1,615,023 1,510,321 1,421,795 1,277,300 1,269,559 1,257,986 1,247,688 1,241,309 1,223,306 2.19 2.19 2.05 1.93 1.73 1.72 1.71 1.69 1.68 1.66 2.60 -1.31 6.32 0.12 10.64 9.05 5.39 4.88 -1.03 -8.28 Ten Best Performers Familymart Uny Holdi Ceconomy Ag Square Enix Holdings Mgm China Hldgs Ltd Arcelormittal Denka Company Limite Sony Corp Dbs Group Hldgs Ltd Tui Ag Fanuc Corporation Quarterly Ret 33.12 28.51 26.62 26.23 26.19 21.77 21.34 21.28 21.28 18.65 Ten Worst Performers Inmarsat First Pacific Co Qantas Airways Sanofi Azimut Hldg S.P.A Inchcape Bayer Ag Koninklijke Philips A.P. Moller - Maersk Investor Ab Quarterly Ret -23.10 -15.00 -13.83 -13.13 -11.36 -8.58 -8.38 -8.28 -7.98 -7.30 163 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Thompson, Siegel & Walmsley Quarter Ending 12/17 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 Bulgaria Cayman Islands China Denmark Finland France Germany Hong Kong Ireland Isle of Man Israel Italy Japan Jordan Luxembourg Macau Mexico Netherlands New Zealand Norway Papua-New Guinea Portugal Scotland Singapore South Africa 7.13 0.25 1.18 0.10 0.00 0.09 0.30 0.04 1.86 1.00 10.23 9.74 2.82 0.52 0.04 0.48 2.20 23.10 0.02 0.15 0.14 0.03 4.34 0.16 0.70 0.05 0.16 0.04 1.29 0.24 7.13 0.25 1.18 0.10 0.00 0.09 0.30 0.04 1.86 1.00 10.23 9.74 2.82 0.52 0.04 0.48 2.20 23.10 0.02 0.15 0.14 0.03 4.34 0.16 0.70 0.05 0.16 0.04 1.29 0.24 7.44 4.19 -2.76 -4.12 -6.47 3.47 -2.85 0.77 -4.06 0.00 0.98 7.40 2.25 11.97 4.76 -4.37 8.56 -6.36 -0.38 14.72 1.71 1.00 1.84 5.08 11.29 -3.49 8.04 7.93 10.03 7.32 5.83 -1.23 -4.12 -5.00 5.50 -2.93 2.31 -2.55 1.58 2.58 6.99 3.79 13.77 4.00 -2.87 8.47 -5.58 -5.20 14.63 2.55 2.28 0.19 2.27 10.93 -1.97 8.93 9.42 10.94 4.37 0.00 2.40 0.00 0.50 0.00 1.02 0.00 2.21 0.00 8.71 13.82 3.22 2.90 0.00 0.27 4.82 22.88 0.00 0.00 0.00 0.00 4.92 0.00 0.00 0.00 0.00 0.00 1.94 0.61 4.37 0.00 2.40 0.00 0.00 0.00 0.00 0.00 2.21 0.00 8.71 13.82 5.55 0.00 0.00 0.00 4.82 22.88 0.00 0.00 0.00 0.00 4.92 0.00 0.00 0.00 0.00 0.00 1.19 0.61 7.66 0.85 6.24 5.65 -2.78 1.66 1.89 3.25 4.40 8.20 -0.90 9.92 -1.44 15.91 -92.25 7.32 2.43 6.24 5.56 -1.30 3.26 3.49 3.17 5.45 8.20 0.66 9.84 0.11 16.33 -91.55 -0.10 -0.00 -0.08 0.01 -0.02 0.01 -0.00 0.00 -0.01 0.08 0.06 -0.11 0.02 -0.03 -0.00 -0.00 -0.21 -0.01 0.00 0.01 -0.02 0.00 -0.02 0.00 -0.01 -0.00 0.01 -0.00 0.03 0.02 0.02 -0.00 0.01 0.00 -0.00 -0.00 0.00 0.00 -0.01 -0.02 0.04 -0.03 -0.00 -0.00 0.01 0.02 0.00 -0.00 0.01 0.00 -0.00 0.00 0.00 0.02 0.00 -0.00 -0.00 -0.00 0.00 0.01 0.09 0.03 0.02 -0.08 0.14 0.13 -0.13 0.06 0.01 0.17 0.31 -0.12 0.16 -0.63 -0.07 -0.00 0.02 0.01 0.01 0.01 0.02 0.00 -0.09 0.07 0.19 0.06 -0.15 0.02 -0.00 0.01 -0.02 0.30 0.00 0.01 -0.01 0.00 -0.13 0.01 0.01 -0.00 0.01 -0.00 0.18 -0.60 Benchmark : MSCI EAFE (Net) 164 City of Clearwater Employees Pension Fund Global Performance Attribution Analysis Thompson, Siegel & Walmsley Quarter Ending 12/17 Countries/ Currencies Benchmark Active Weight Currency Weight Local Return US $ Return Portfolio Active Weight Currency Weight Local Return US $ Return Return Attribution Market Select Currency Select Security Select Total South Korea Spain Sweden Switzerland United Kingdom United States 0.00 3.46 2.90 8.28 16.99 0.00 100.00 0.00 3.46 2.90 8.28 16.99 0.00 100.00 -2.92 -3.51 2.49 4.59 3.72 -1.39 -3.80 1.76 5.46 4.29 0.63 1.16 0.38 6.96 15.05 1.24 100.00 0.63 1.16 0.38 6.96 15.36 4.06 100.00 -0.62 0.39 -7.01 3.93 3.41 12.69 3.86 6.32 1.97 -7.30 3.19 2.22 12.69 4.28 -0.02 0.15 0.18 0.02 -0.02 -0.05 -0.13 -0.00 -0.02 0.02 0.02 -0.00 -0.02 0.07 -0.00 0.04 -0.01 0.10 -0.18 0.16 0.27 -0.03 0.17 0.19 0.13 -0.20 0.09 0.21 Benchmark : MSCI EAFE (Net) 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] 165 City of Clearwater Employees Pension Fund International Equity Sector Attribution Analysis Thompson, Siegel & Walmsley Quarter Ending 12/17 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 3.23 7.36 13.78 14.27 9.52 10.99 23.17 8.41 5.13 4.15 100.00 5.05 7.86 14.40 12.19 11.20 10.56 21.53 6.26 4.07 3.35 100.00 4.93 8.70 3.03 3.51 4.84 -3.67 6.81 8.58 1.03 3.66 4.28 10.28 8.28 4.78 5.36 4.98 -0.08 3.19 5.05 0.80 -0.95 4.06 -0.17 0.03 -0.24 -0.26 -0.01 -0.39 0.84 0.30 0.01 0.19 0.28 -0.11 -0.02 -0.00 0.03 -0.02 -0.02 -0.01 0.02 -0.03 -0.04 -0.21 -0.29 0.01 -0.25 -0.24 -0.03 -0.41 0.82 0.32 -0.02 0.15 0.07 Index - MSCI EAFE (Net) 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 4.14% ] - [ Buy Hold Return 4.28% ] 166 City of Clearwater Employees Pension Fund Fixed Income Comp as of 12/31/17 United States Treas United States Treas United States Treas United States Treas FNMA Cl 30 - Tba Jan United States Treas United States Treas United States Treas FNMA Cl 30 - Tba Jan Fhgld Gu Sf 30 - Tba Sector % Port Government Government Government Government Mortgage Government Government Government Mortgage Mortgage 6.92 3.76 3.46 3.07 2.69 2.10 1.90 1.88 1.77 1.42 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 13.97 33.74 10.31 33.33 0.66 3.84 1.30 2.47 0.37 -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 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 0.54 0.39 262,887 -4,752 1,394 259,530 3.91 3.54 249,705 -188 10,012 259,530 3.91 3.54 249,705 -188 10,012 259,530 3.05 2.24 266,736 -29,606 22,399 259,530 2.90 2.10 210,840 14,352 34,337 259,530 4.88 4.01 212,692 7,716 39,121 259,530 6.26 6.36 59,224 7,716 192,589 259,530 Holdings and allocations only include SMA accounts. Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 167 City of Clearwater Employees Pension Fund Fixed Income Comp as of 12/31/17 Domestic Fixed $282,527 108.86% Other $0 0.00% Domestic Equity $2 0.00% Cash & Equiv $-23,000 -8.86% Periods from 12/87 to 12/17 Alpha Beta R-Squared 0.26 0.62 0.60 Annualized Return% 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 F 1 T Annualized Standard Deviation% F Fixed Income Comp 1 BC Agg T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 6.26 6.36 3.29 3.11 4.01 1.31 0.95 0.77 0.00 -0.07 Asset Allocation ($000) Risk/Return Analysis Holdings and allocations only include SMA accounts. 168 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/17 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 3.17 0.85 0.46 0.11 -0.26 0.54 42 0.39 59 12.51 7.44 4.05 2.63 0.90 3.91 53 3.54 64 12.50 8.05 3.90 2.44 0.98 4.46 43 3.09 65 6.98 4.73 2.76 2.05 0.93 3.05 45 2.24 64 8.94 5.24 3.62 2.47 0.93 3.83 44 3.16 58 6.47 4.49 2.59 1.87 0.22 2.90 44 2.10 63 8.55 5.08 3.37 2.26 0.48 3.49 45 2.45 66 8.15 5.36 3.62 2.76 0.41 3.84 46 3.20 59 8.52 5.53 3.96 3.12 0.78 4.27 45 3.62 57 11.19 6.78 4.86 3.56 0.68 5.14 45 3.87 65 8.53 5.57 4.62 3.83 1.40 4.88 42 4.01 65 -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% F1 F1 F 1 F 1 F 1 F 1 F 1 F 1 F 1 F 1 F 1 169 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 12.51 7.44 4.05 2.63 0.90 3.91 53 3.54 64 15.18 6.88 3.24 2.09 0.15 5.01 32 2.65 58 4.04 1.30 0.62 -1.11 -5.21 0.30 59 0.55 52 16.90 6.29 4.39 2.09 0.07 6.18 26 5.97 31 9.38 1.12 -0.68 -2.02 -7.79 -0.75 51 -2.02 75 16.53 10.34 6.63 4.06 0.57 6.53 50 4.22 72 14.92 7.84 6.12 3.64 0.01 5.94 52 7.84 25 16.55 10.11 7.30 5.68 0.86 7.37 49 6.54 63 44.29 16.54 10.00 5.68 -1.10 12.37 40 5.93 73 9.94 5.24 1.93 -6.00 -25.76 2.54 46 5.24 25 -30% -20% -10% 0% 10% 20% 30% 40% 50% F1 F1 F1 F1 F1 F1 F1 F1 F 1 F1 170 City of Clearwater Employees Pension Fund Risk Measure Summary Fixed Income Comp Quarterly Periods Ending 12/31/17 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 1.10 0.75 0.54 1.31 3.91 3.91 0.64 0.90 0.15 0.93 4.79 3.39 0.30 1.19 0 4 0.39 1.45 3.54 3.54 0.87 3.09 3 9 1.06 0.68 0.75 -2.09 3.03 0.30 7.15 2.98 0.85 0.27 0.89 0.89 3.10 1.08 0.73 3 9 -2.98 3.03 -0.31 6.00 3.31 0.55 4 16 1.05 0.63 0.80 -2.13 3.03 -0.75 7.15 2.82 0.88 0.25 0.91 0.93 2.99 0.91 0.85 6 14 -2.98 3.03 -2.02 6.00 3.08 0.60 20 100 0.91 0.41 0.53 -2.54 5.72 -0.75 15.87 3.11 0.62 0.26 0.60 0.95 4.82 2.42 -0.07 25 95 -2.98 7.96 -3.23 18.48 4.01 0.77 171 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios Annualized Rate of Return0.5 1.05 1.6 2.15 2.7 3.25 3.8 4.35 4.9 5.45 6.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 F 1Median RiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank F Fixed Income Comp 1 BC Agg Median 3.05 45 2.98 39 2.24 64 3.31 51 2.76 3.31 Annualized Rate of Return0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 F 1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank F Fixed Income Comp 1 BC Agg Median 2.90 44 2.82 35 2.10 63 3.08 42 2.59 3.20 172 City of Clearwater Employees Pension Fund Dodge & Cox as of 12/31/17 United States Treas United States Treas Federal Home Ln Mtg United States Treas United States Treas Fhlm Pool C91769 United States Treas United States Treas United States Treas FNMA Pool #al6120 Sector % Port Government Government Mortgage Government Government Mortgage Government Government Government Mortgage 4.22 3.76 2.63 2.45 2.03 1.74 1.74 1.68 1.66 1.35 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 18.03 23.56 10.93 34.84 1.32 6.71 2.88 1.16 0.57 -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 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 0.48 0.39 128,839 66 615 129,520 3.99 3.54 122,312 2,261 4,946 129,520 3.99 3.54 122,312 2,261 4,946 129,520 3.12 2.24 145,495 -27,983 12,008 129,520 3.19 2.10 114,596 -4,993 19,916 129,520 5.17 4.01 101,707 -12,415 40,227 129,520 4.88 4.06 75,656 -12,415 66,279 129,520 Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 173 City of Clearwater Employees Pension Fund Dodge & Cox as of 12/31/17 Cash & Equiv $1,287 0.99% Domestic Fixed $128,233 99.01% Periods from 2/04 to 12/17 Alpha Beta R-Squared 0.34 0.80 0.59 Annualized Return% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 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 4.88 4.06 1.29 3.19 3.20 0.51 1.13 0.86 0.00 0.33 Asset Allocation ($000) Risk/Return Analysis 174 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/17 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 3.17 0.85 0.46 0.11 -0.26 0.48 49 0.39 59 12.51 7.44 4.05 2.63 0.90 3.99 51 3.54 64 12.50 8.05 3.90 2.44 0.98 4.77 40 3.09 65 6.98 4.73 2.76 2.05 0.93 3.12 44 2.24 64 8.94 5.24 3.62 2.47 0.93 3.83 44 3.16 58 6.47 4.49 2.59 1.87 0.22 3.19 38 2.10 63 8.55 5.08 3.37 2.26 0.48 3.95 38 2.45 66 8.15 5.36 3.62 2.76 0.41 4.11 41 3.20 59 8.52 5.53 3.96 3.12 0.78 4.53 40 3.62 57 11.19 6.78 4.86 3.56 0.68 5.60 34 3.87 65 8.53 5.57 4.62 3.83 1.40 5.17 35 4.01 65 -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% d1 d1 d 1 d 1 d 1 d 1 d 1 d 1 d 1 d 1 d 1 175 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 12.51 7.44 4.05 2.63 0.90 3.99 51 3.54 64 15.18 6.88 3.24 2.09 0.15 5.55 30 2.65 58 4.04 1.30 0.62 -1.11 -5.21 -0.12 67 0.55 52 16.90 6.29 4.39 2.09 0.07 6.01 29 5.97 31 9.38 1.12 -0.68 -2.02 -7.79 0.65 29 -2.02 75 16.53 10.34 6.63 4.06 0.57 7.85 39 4.22 72 14.92 7.84 6.12 3.64 0.01 5.10 61 7.84 25 16.55 10.11 7.30 5.68 0.86 7.53 47 6.54 63 44.29 16.54 10.00 5.68 -1.10 14.53 30 5.93 73 9.94 5.24 1.93 -6.00 -25.76 1.37 52 5.24 25 -30% -20% -10% 0% 10% 20% 30% 40% 50% d1 d 1 d1 d1 d1 d 1 d1 d1 d 1 d 1 176 City of Clearwater Employees Pension Fund December 31, 2017 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 12/17 9/17 6/17 3/17 12/16 6.98 4.73 2.76 2.05 0.93 3.12 44 2.24 64 7.06 4.63 3.13 2.18 0.69 3.34 43 2.71 62 6.84 3.78 2.79 1.90 0.39 3.08 39 2.48 60 6.97 3.89 2.92 2.05 0.26 3.37 35 2.68 58 7.89 4.23 3.18 2.23 0.31 3.78 32 3.03 54 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% d 1 d 1 d 1 d 1 d 1 Dodge & Cox Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 0.8 0.4 0.3 1.2 0.5 0.1 0.1 -0.7 -0.2 0.7 -1.8 0.7 -0.5 0.6 1.2 1.6 0.3 -0.1 0.2 0.1 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. BC Agg 177 City of Clearwater Employees Pension Fund Risk Measure Summary Dodge & Cox Quarterly Periods Ending 12/31/17 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 1.13 0.75 0.48 1.30 3.99 3.99 0.71 0.94 0.15 0.89 4.44 3.34 0.38 1.16 0 4 0.39 1.45 3.54 3.54 0.87 3.09 3 9 0.97 0.46 0.67 -1.45 2.78 -0.12 7.19 2.64 0.68 0.36 0.73 1.03 3.98 1.73 0.48 3 9 -2.98 3.03 -0.31 6.00 3.31 0.55 4 16 1.00 0.33 0.75 -1.89 2.78 -0.12 7.19 2.55 0.73 0.39 0.77 1.14 4.00 1.49 0.70 6 14 -2.98 3.03 -2.02 6.00 3.08 0.60 11 44 1.05 0.52 0.62 -2.88 6.98 -0.26 17.78 3.40 0.80 0.34 0.59 1.05 4.48 2.39 0.33 15 40 -2.98 4.57 -2.02 10.56 3.37 0.81 178 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios Annualized Rate of Return0.5 1.05 1.6 2.15 2.7 3.25 3.8 4.35 4.9 5.45 6.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 d 1Median RiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank d Dodge & Cox 1 BC Agg Median 3.12 44 2.64 36 2.24 64 3.31 51 2.76 3.31 Annualized Rate of Return0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 d 1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank d Dodge & Cox 1 BC Agg Median 3.19 38 2.55 31 2.10 63 3.08 42 2.59 3.20 179 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Dodge & Cox Quarter Ending 12/17 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 225 128,232,604 2.75 13.25 3.82 5.92 0.50 5.41 8.09 9,734 20,198,629,310,464 2.71 8.27 3.06 6.23 0.14 5.98 8.27 Yield to Maturity 5+ 7.4% 4 - 5 9.5% 3 - 4 18.3% 2 - 3 41.2% 1 - 2 17.8% 0 - 1 5.8% Time to Maturity 10+ 45.9% 7 - 10 11.7% 5 - 7 9.0% 3 - 5 10.7% 1 - 3 10.1% 0 - 1 12.6% Coupon 11+ 0.0% 9 - 11 0.2% 7 - 9 5.7% 5 - 7 21.0% 3 - 5 40.6% 0 - 3 32.5% Quality NR 10.5% B 0.7% BA 2.7% BAA 30.0% A 5.1% AA 2.3% AAA 25.9% GOVT 22.8% Duration 8+ 21.2% 6 - 8 10.2% 4 - 6 20.5% 3 - 4 20.1% 1 - 3 15.4% 0 - 1 12.8% Effective Duration 8+ 20.0% 6 - 8 10.8% 4 - 6 14.7% 3 - 4 7.8% 1 - 3 30.7% 0 - 1 16.0% 180 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Dodge & Cox As of 12/31/17 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 22.00 21.77 0.23 0.13 --- --- 0.13 --- --- 26.62 --- 11.87 14.27 0.48 --- --- --- 48.76 --- --- --- 1.02 --- --- 1.02 --- 0.22 --- --- --- --- --- 1.07 --- --- 2.31 --- --- --- 3.40 --- --- 3.40 --- 1.11 --- --- --- --- --- 0.56 --- --- 5.06 1.56 --- 1.56 27.21 9.68 5.70 11.27 0.57 --- --- --- --- --- --- 1.25 --- --- 30.02 --- --- --- 2.67 1.25 1.01 0.40 --- --- --- --- --- --- --- --- --- --- 2.67 --- --- --- 0.69 --- --- 0.69 --- --- --- --- --- --- --- --- --- --- 0.69 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 1.70 --- --- 1.10 0.60 --- 8.22 1.91 3.27 3.03 --- --- --- 0.57 10.49 23.56 21.77 1.79 36.82 10.93 6.71 18.01 1.17 1.33 34.84 1.91 15.14 17.30 0.48 2.88 --- 0.57 100.00 181 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Dodge & Cox Quarter Ending 12/17 Weight Portfolio Index Return Portfolio Index Selection Security Sector Total Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous 18.87 21.26 12.53 35.54 1.34 6.30 2.38 1.18 0.58 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.93 -0.04 1.71 0.19 0.35 2.03 2.39 0.41 0.64 0.69 0.08 1.27 0.22 0.50 1.47 0.62 0.27 1.25 0.00 0.05 -0.03 0.05 -0.01 -0.00 0.04 0.04 0.00 0.00 0.14 0.13 0.02 0.16 0.08 0.01 0.09 0.01 0.00 0.01 0.51 0.18 -0.01 0.21 0.07 0.00 0.13 0.06 0.00 0.01 0.65 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 -0.11% [ Actual Return 0.53% ] - [ Buy Hold Return 0.64% ] 182 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 12/31/17 United States Treas United States Treas United States Treas United States Treas FNMA Cl 30 - Tba Jan United States Treas FNMA Cl 30 - Tba Jan Fhgld Gu Sf 30 - Tba FNMA Ci 15 - Tba Jan United States Treas Sector % Port Government Government Government Government Mortgage Government Mortgage Mortgage Mortgage Government 13.81 7.50 6.91 6.13 5.37 3.79 3.54 2.84 2.74 2.68 Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous % Port 10.61 42.16 9.81 32.09 0.11 1.47 0.00 3.56 0.20 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 Western Asset Management Co.BC Agg Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/04 Western Asset Management Co. BC Agg Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.60 0.39 129,210 84 776 130,070 4.08 3.54 120,187 4,834 5,048 130,070 4.08 3.54 120,187 4,834 5,048 130,070 2.81 2.24 118,744 965 10,361 130,070 2.48 2.10 91,744 23,947 14,379 130,070 4.47 4.01 100,798 23,895 5,376 130,070 4.50 4.13 74,568 23,895 31,607 130,070 Portfolio Performance (%) Top Fixed Income Holdings Sector Allocation 183 City of Clearwater Employees Pension Fund Western Asset Management Co. as of 12/31/17 Domestic Fixed $154,295 118.62% Other $0 0.00% Cash & Equiv $-24,225 -18.62% Periods from 9/04 to 12/17 Alpha Beta R-Squared 0.05 1.06 0.93 Annualized Return% 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 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 4.50 4.13 1.29 3.53 3.25 0.90 0.91 0.87 0.00 0.38 Asset Allocation ($000) Risk/Return Analysis 184 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Fixed Income Portfolios Periods Ending 12/17 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 Last 10 Years 3.17 0.85 0.46 0.11 -0.26 0.60 39 0.39 59 12.51 7.44 4.05 2.63 0.90 4.08 49 3.54 64 12.50 8.05 3.90 2.44 0.98 3.87 51 3.09 65 6.98 4.73 2.76 2.05 0.93 2.81 49 2.24 64 8.94 5.24 3.62 2.47 0.93 3.76 45 3.16 58 6.47 4.49 2.59 1.87 0.22 2.48 52 2.10 63 8.55 5.08 3.37 2.26 0.48 2.91 54 2.45 66 8.15 5.36 3.62 2.76 0.41 3.52 53 3.20 59 8.52 5.53 3.96 3.12 0.78 3.96 50 3.62 57 11.19 6.78 4.86 3.56 0.68 4.53 54 3.87 65 8.53 5.57 4.62 3.83 1.40 4.47 53 4.01 65 -1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% w1 w 1 w 1 w 1 w 1 w1 w1 w1 w1 w 1 w1 185 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 12.51 7.44 4.05 2.63 0.90 4.08 49 3.54 64 15.18 6.88 3.24 2.09 0.15 3.66 45 2.65 58 4.04 1.30 0.62 -1.11 -5.21 0.73 46 0.55 52 16.90 6.29 4.39 2.09 0.07 6.65 19 5.97 31 9.38 1.12 -0.68 -2.02 -7.79 -2.46 83 -2.02 75 16.53 10.34 6.63 4.06 0.57 5.07 62 4.22 72 14.92 7.84 6.12 3.64 0.01 7.23 36 7.84 25 16.55 10.11 7.30 5.68 0.86 7.09 52 6.54 63 44.29 16.54 10.00 5.68 -1.10 9.24 53 5.93 73 9.94 5.24 1.93 -6.00 -25.76 3.92 37 5.24 25 -30% -20% -10% 0% 10% 20% 30% 40% 50% w1 w1 w1 w1 w1 w1 w1 w1 w 1 w1 186 City of Clearwater Employees Pension Fund December 31, 2017 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 12/17 9/17 6/17 3/17 12/16 6.98 4.73 2.76 2.05 0.93 2.81 49 2.24 64 7.06 4.63 3.13 2.18 0.69 3.17 48 2.71 62 6.84 3.78 2.79 1.90 0.39 2.91 46 2.48 60 6.97 3.89 2.92 2.05 0.26 3.21 40 2.68 58 7.89 4.23 3.18 2.23 0.31 3.65 36 3.03 54 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% w 1 w 1 w 1 w 1 w 1 Western Asset Management Co. Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -0.6% -0.4% -0.2% -0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% -0.1 -0.1 -0.2 0.0 0.4 0.3 0.1 -0.1 0.3 -0.1 -0.4 0.3 0.3 0.1 0.5 0.1 0.1 0.0 0.2 0.2 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. BC Agg 187 City of Clearwater Employees Pension Fund Risk Measure Summary Western Asset Management Co. Quarterly Periods Ending 12/31/17 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 1.15 0.75 0.60 1.44 4.08 4.08 0.69 0.96 0.16 0.95 4.66 3.38 0.21 2.44 0 4 0.39 1.45 3.54 3.54 0.87 3.09 3 9 1.12 0.94 0.75 -2.90 3.36 0.33 6.48 3.42 1.02 0.13 0.98 0.70 2.35 0.47 1.21 3 9 -2.98 3.03 -0.31 6.00 3.31 0.55 6 14 1.11 1.00 0.60 -2.90 3.36 -2.46 6.65 3.24 1.04 0.08 0.98 0.69 2.13 0.46 0.84 6 14 -2.98 3.03 -2.02 6.00 3.08 0.60 15 38 1.09 1.09 0.62 -2.90 5.22 -2.46 14.60 3.53 1.06 0.05 0.93 0.91 3.03 0.97 0.38 14 39 -2.98 4.57 -2.02 10.56 3.25 0.87 188 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Fixed Income Portfolios Annualized Rate of Return0.5 1.05 1.6 2.15 2.7 3.25 3.8 4.35 4.9 5.45 6.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 w 1Median RiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank w Western Asset Management Co. 1 BC Agg Median 2.81 49 3.42 58 2.24 64 3.31 51 2.76 3.31 Annualized Rate of Return0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 w1Median RiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank w Western Asset Management Co. 1 BC Agg Median 2.48 52 3.24 56 2.10 63 3.08 42 2.59 3.20 189 City of Clearwater Employees Pension Fund Fixed Income, Mortgage and Municipals Summary Statistics Western Asset Management Co. Quarter Ending 12/17 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 474 154,294,825 2.55 14.39 2.95 5.69 -0.15 5.07 7.47 9,734 20,198,630,000,000 2.71 8.27 3.06 6.23 0.14 5.98 8.27 Yield to Maturity 5+ 1.5% 4 - 5 3.5% 3 - 4 26.9% 2 - 3 39.3% 1 - 2 27.0% 0 - 1 1.9% Time to Maturity 10+ 48.6% 7 - 10 10.0% 5 - 7 7.1% 3 - 5 4.4% 1 - 3 11.0% 0 - 1 18.9% Coupon 11+ 0.0% 9 - 11 0.0% 7 - 9 1.0% 5 - 7 8.7% 3 - 5 50.5% 0 - 3 39.7% Quality NR 1.4% BA 1.4% BAA 11.7% A 9.6% AA 2.1% AAA 33.4% GOVT 40.3% Duration 8+ 18.1% 6 - 8 13.9% 4 - 6 28.3% 3 - 4 8.6% 1 - 3 12.2% 0 - 1 18.9% Effective Duration 8+ 16.6% 6 - 8 11.3% 4 - 6 21.2% 3 - 4 13.9% 1 - 3 16.4% 0 - 1 20.5% 190 City of Clearwater Employees Pension Fund Percent Invested by Sector and Quality Western Asset Management Co. As of 12/31/17 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 41.02 40.05 0.97 1.07 0.63 --- 0.25 0.19 --- 31.67 6.75 6.23 17.82 0.87 --- --- --- 73.76 1.00 --- 1.00 1.08 0.72 --- 0.23 0.13 --- --- --- --- --- --- --- --- --- 2.08 --- --- --- 9.53 3.32 0.08 5.04 1.09 0.08 --- --- --- --- --- --- --- --- 9.60 0.14 --- 0.14 11.55 4.08 1.39 4.38 1.70 0.03 --- --- --- --- --- --- --- --- 11.73 --- --- --- 1.42 1.04 --- 0.38 --- --- --- --- --- --- --- --- --- --- 1.42 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- 0.79 0.01 --- 0.33 0.45 --- 0.42 0.12 0.30 --- --- --- --- 0.20 1.41 42.16 40.05 2.11 25.44 9.80 1.47 10.61 3.56 0.11 32.09 6.87 6.53 17.82 0.87 --- --- 0.20 100.00 191 City of Clearwater Employees Pension Fund Fixed Income Sector Attribution Analysis Western Asset Management Co. Quarter Ending 12/17 Weight Portfolio Index Return Portfolio Index Selection Security Sector Total Finance Government Industrials Mortgage Transportation Utilities Municipals Foreign Miscellaneous 10.17 44.90 9.13 30.81 0.09 1.46 0.00 3.24 0.19 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.17 0.49 1.58 0.38 0.86 0.99 0.00 0.58 0.63 0.69 0.08 1.27 0.22 0.50 1.47 0.62 0.27 1.25 0.00 0.05 0.19 0.03 0.05 0.00 -0.01 -0.00 0.01 0.00 0.31 0.07 0.04 0.12 0.07 0.00 0.02 0.00 0.01 0.00 0.32 0.12 0.22 0.14 0.12 0.00 0.01 0.00 0.02 0.00 0.64 Index - Wilshire GCM Index Security Selection Return Attribution [ Portfolio Market Value Sector Percentage ] * [ Portfolio Sector Return - Index Sector Return ] Sector Selection Return Attribution [ Portfolio Sector Percentage - Index Sector Percentage ] * [ Index Sector Return - Index Total Return ] Trading Effect -0.08% [ Actual Return 0.55% ] - [ Buy Hold Return 0.63% ] 192 City of Clearwater Employees Pension Fund Real Estate Comp as of 12/31/17 Simon Ppty Group Inc Prologis Inc Public Storage Inc Avalonbay Cmntys Inc Equinix Inc Equity Residential P Hcp Inc Life Storage Inc Welltower Inc Macerich Co GICS Sector % Port Financials Financials Financials Financials Telecom Services Financials Financials Financials Financials Financials 6.89 6.45 6.36 4.55 4.39 4.09 3.97 3.64 3.64 3.29 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 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 2.86 1.84 138,820 -182 3,961 142,599 6.27 5.75 123,686 11,074 7,839 142,599 6.27 5.75 123,686 11,074 7,839 142,599 6.72 7.37 98,604 20,767 23,228 142,599 9.49 10.45 76,997 19,826 45,776 142,599 6.02 6.92 19,347 18,403 104,850 142,599 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 193 City of Clearwater Employees Pension Fund Real Estate Comp as of 12/31/17 Cash & Equiv $174 0.12% Domestic Equity $20,489 14.37% Real Estate $121,936 85.51% Periods from 4/08 to 12/17 Alpha Beta R-Squared -0.16 0.98 0.99 Annualized Return% -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 4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 R 1 T Annualized Standard Deviation% R Real Estate Comp 1 Policy Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 6.02 6.92 0.30 23.62 24.21 0.15 0.24 0.27 0.00 -0.31 Asset Allocation ($000) Risk/Return Analysis 194 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/17 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 Last 7 Years Last 8 Years Last 9 Years 9.90 3.72 1.90 0.86 -9.46 2.86 34 1.84 51 24.28 11.26 7.01 3.66 -17.75 6.27 59 5.75 60 21.34 10.18 7.62 4.75 -13.67 6.60 64 6.90 57 20.42 11.36 7.80 4.21 -10.75 6.72 56 7.37 52 20.80 12.67 10.36 6.57 -8.80 10.30 50 11.58 30 22.98 12.54 10.14 6.15 -6.64 9.49 52 10.45 47 24.13 12.44 10.63 7.36 -5.45 9.85 62 11.26 42 23.58 12.70 10.54 6.92 -3.33 9.71 61 11.31 42 19.98 13.16 10.47 6.06 -4.33 12.11 37 12.93 26 15.19 10.31 6.59 1.45 -9.85 13.45 12 14.63 8 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% R1 R1 R1 R1 R1 R1 R1 R1 R1 R1 195 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 24.28 11.26 7.01 3.66 -17.75 6.27 59 5.75 60 21.94 10.36 8.09 3.14 -17.21 6.94 60 8.06 50 32.62 15.72 11.34 2.44 -21.05 6.96 59 8.33 56 37.89 20.64 13.16 8.71 -11.08 21.77 23 25.22 21 32.69 15.04 10.44 3.47 -7.29 6.29 64 6.02 65 35.36 17.62 11.52 5.85 -7.03 11.69 48 15.41 31 33.63 17.51 12.45 3.63 -15.59 8.85 61 11.62 52 30.94 18.57 13.91 1.91 -26.08 30.51 5 24.96 13 38.09 -1.98 -28.24 -34.24 -60.79 24.68 14 29.20 11 -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% R 1 R 1 R 1 R 1 R 1 R 1 R 1 R 1 R 1 196 City of Clearwater Employees Pension Fund Risk Measure Summary Real Estate Comp Quarterly Periods Ending 12/31/17 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 1.09 0.50 0.86 2.86 6.27 6.27 1.84 0.98 0.15 0.50 2.94 5.55 1.63 0.31 0 4 0.92 1.84 5.75 5.75 1.00 4.91 1 11 0.78 0.37 0.42 -4.20 5.00 3.85 13.10 4.47 0.68 0.38 0.86 1.41 9.27 2.60 -0.28 3 9 -5.18 6.22 1.72 19.60 6.12 1.14 3 17 0.83 0.37 0.45 -4.20 9.53 3.85 21.77 5.72 0.75 0.38 0.94 1.61 12.31 2.39 -0.42 5 15 -5.18 11.15 1.72 25.22 7.41 1.37 7 31 0.92 0.95 0.42 -37.93 33.98 -45.85 118.01 24.99 0.98 -0.16 0.99 0.29 7.32 2.76 -0.31 9 29 -40.40 35.93 -45.65 115.40 25.25 0.32 197 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios Annualized Rate of Return0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 -6.0 -3.2 -0.4 2.3 5.2 8.0 10.8 13.6 16.4 19.1 21.9 R 1 MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Real Estate Comp 1 Policy Index Median 6.72 56 4.47 33 7.37 52 6.12 43 7.80 7.70 Annualized Rate of Return0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 -4.0 -1.2 1.5 4.3 7.2 10.0 12.8 15.6 18.4 21.1 23.9 R 1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank R Real Estate Comp 1 Policy Index Median 9.49 52 5.72 36 10.45 47 7.41 44 10.14 8.30 198 City of Clearwater Employees Pension Fund Security Capital as of 12/31/17 Simon Ppty Group Inc Prologis Inc Public Storage Inc Avalonbay Cmntys Inc Equinix Inc Equity Residential P Hcp Inc Life Storage Inc Welltower Inc Macerich Co GICS Sector % Port Financials Financials Financials Financials Telecom Services Financials Financials Financials Financials Financials 6.89 6.45 6.36 4.55 4.39 4.09 3.97 3.64 3.64 3.29 Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Telecom Services Utilities % Port 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Qtr 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 3.31 1.72 19,969 34 660 20,663 4.91 4.84 37,311 -17,917 1,268 20,663 4.91 4.84 37,311 -17,917 1,268 20,663 5.11 5.75 49,855 -34,571 5,379 20,663 9.45 9.70 42,557 -41,217 19,323 20,663 6.33 6.74 19,347 -72,028 73,344 20,663 Portfolio Performance (%) Top Equity Holdings GICS Sector Allocation 199 City of Clearwater Employees Pension Fund Security Capital as of 12/31/17 Cash & Equiv $174 0.84% Domestic Equity $20,489 99.16% Periods from 4/08 to 12/17 Alpha Beta R-Squared -0.08 1.00 0.99 Annualized Return% -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 0.0 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 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 6.33 6.74 0.30 25.94 26.08 0.15 0.23 0.25 0.00 -0.17 Asset Allocation ($000) Risk/Return Analysis 200 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/17 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 Last 7 Years Last 8 Years Last 9 Years 9.90 3.72 1.90 0.86 -9.46 3.31 30 1.72 56 24.28 11.26 7.01 3.66 -17.75 4.91 68 4.84 69 21.34 10.18 7.62 4.75 -13.67 5.31 73 6.22 67 20.42 11.36 7.80 4.21 -10.75 5.11 71 5.75 62 20.80 12.67 10.36 6.57 -8.80 11.51 30 11.68 29 22.98 12.54 10.14 6.15 -6.64 9.45 52 9.70 51 24.13 12.44 10.63 7.36 -5.45 10.55 52 10.97 46 23.58 12.70 10.54 6.92 -3.33 10.01 57 10.63 46 19.98 13.16 10.47 6.06 -4.33 12.51 30 12.78 28 15.19 10.31 6.59 1.45 -9.85 13.80 10 14.50 8 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% s1 s1 s1 s1 s1 s1 s1 s1 s1 s1 201 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 2017 2016 2015 2014 2013 2012 2011 2010 2009 24.28 11.26 7.01 3.66 -17.75 4.91 68 4.84 69 21.94 10.36 8.09 3.14 -17.21 5.71 65 7.62 54 32.62 15.72 11.34 2.44 -21.05 4.70 67 4.81 67 37.89 20.64 13.16 8.71 -11.08 33.13 8 31.53 10 32.69 15.04 10.44 3.47 -7.29 1.60 85 2.15 82 35.36 17.62 11.52 5.85 -7.03 16.22 29 17.55 25 33.63 17.51 12.45 3.63 -15.59 6.86 67 8.56 63 30.94 18.57 13.91 1.91 -26.08 31.62 4 29.12 8 38.09 -1.98 -28.24 -34.24 -60.79 24.68 14 29.20 11 -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% s 1 s 1 s 1 s 1 s 1 s 1 s 1 s 1 s 1 202 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 217Annualized Rate of Return0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 -6.0 -3.2 -0.4 2.3 5.2 8.0 10.8 13.6 16.4 19.1 21.9 s1MedianRisk Median Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Security Capital 1 Wilshire RESI Median 5.11 71 9.24 60 5.75 62 9.19 60 7.80 7.70 Annualized Rate of Return0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 -4.0 -1.2 1.5 4.3 7.2 10.0 12.8 15.6 18.4 21.1 23.9 s1MedianRisk Median Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank s Security Capital 1 Wilshire RESI Median 9.45 52 11.38 68 9.70 51 11.13 64 10.14 8.30 203 City of Clearwater Employees Pension Fund December 31, 2017 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 12/17 9/17 6/17 3/17 12/16 20.42 11.36 7.80 4.21 -10.75 5.11 71 5.75 62 20.33 11.91 9.84 6.02 -12.26 9.19 60 10.17 45 20.47 12.13 9.50 4.15 -13.71 7.83 65 8.82 55 21.01 12.68 10.47 5.73 -14.33 10.02 56 10.68 48 22.45 13.90 11.63 5.69 -13.60 13.79 26 14.05 24 -15% -10% -5% 0% 5% 10% 15% 20% 25% s 1 s 1 s 1 s 1 s 1 Security Capital Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% -0.7 0.8 -0.4 -0.3 0.6 -0.2 0.2 0.7 0.1 -0.6 0.2 0.2 -1.3 -0.9 0.7 -0.3 -0.6 -1.1 0.2 1.6 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. Wilshire RESI 204 City of Clearwater Employees Pension Fund Risk Measure Summary Security Capital Quarterly Periods Ending 12/31/17 Risk Measures 1 Year Portfolio Bench 3 Years Portfolio Bench 5 Years Portfolio Bench Inception Portfolio Bench Negative Periods Positive Periods Up Market Capture Down Market Capture Batting Average Worst Quarter Best Quarter Worst 4 Quarters Best 4 Quarters Standard Deviation Beta Alpha R-Squared Sharpe Ratio Treynor Ratio Tracking Error Information Ratio 1 3 1.02 0.50 -0.05 3.31 4.91 4.91 2.90 1.06 -0.03 0.40 1.40 3.83 2.34 0.03 0 4 0.50 1.91 4.84 4.84 1.46 2.74 4 8 0.94 1.01 0.50 -10.12 7.81 -2.52 21.41 9.24 0.99 -0.14 0.97 0.51 4.76 1.63 -0.38 3 9 -9.61 7.64 -1.23 23.55 9.19 0.58 8 12 0.98 1.00 0.50 -10.12 15.81 -2.52 33.13 11.38 1.01 -0.09 0.98 0.81 9.06 1.46 -0.15 7 13 -9.61 15.03 -1.23 31.53 11.13 0.85 13 25 0.98 0.99 0.39 -37.93 33.98 -45.85 118.01 26.71 1.00 -0.08 0.99 0.28 7.54 2.14 -0.17 12 26 -40.40 35.93 -45.65 115.40 26.71 0.29 205 City of Clearwater Employees Pension Fund USAA as of 12/31/17 -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 6/30/15 USAA NCREIF ODCE Fund Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/15 USAA NCREIF ODCE Fund Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 3.74 2.07 11,166 -123 413 11,456 9.30 7.62 10,850 -508 1,114 11,456 9.30 7.62 10,850 -508 1,114 11,456 10.37 9.48 5,000 3,926 2,530 11,456 Portfolio Performance (%) 206 City of Clearwater Employees Pension Fund USAA as of 12/31/17 Real Estate $11,456 100.00% Periods from 6/15 to 12/17 Alpha Beta R-Squared N/A N/A N/A Annualized Return% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 u 1 T Annualized Standard Deviation% u USAA 1 NCREIF ODCE Fund I T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 10.37 9.48 0.49 3.06 1.33 0.19 3.23 6.75 0.00 0.24 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 207 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low u USAA Net Ret Rank 1 NCREIF ODCE Fund Index Net Ret Rank Last Qtr Last Year Last 2 Years 9.90 3.72 1.90 0.86 -9.46 3.74 24 2.07 45 24.28 11.26 7.01 3.66 -17.75 9.30 32 7.62 44 21.34 10.18 7.62 4.75 -13.67 10.81 22 8.19 42 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% u 1 u 1 u 1 208 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 u USAA Net Ret Rank 1 NCREIF ODCE Fund Index Net Ret Rank 2017 2016 24.28 11.26 7.01 3.66 -17.75 9.30 32 7.62 44 21.94 10.36 8.09 3.14 -17.21 12.34 17 8.76 42 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% u 1 u 1 209 City of Clearwater Employees Pension Fund Risk Measure Summary USAA Quarterly Periods Ending 12/31/17 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 1.22 0.75 0.80 3.74 9.30 9.30 2.40 1.38 -0.22 0.63 3.51 6.13 2.10 0.76 0 4 1.70 2.07 7.62 7.62 0.32 21.02 0 10 1.09 0.60 0.54 5.59 7.78 14.21 3.06 0.57 1.15 0.12 3.23 17.30 3.36 0.24 0 10 1.70 3.68 7.62 11.81 1.33 6.75 210 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 12/31/17 -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 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 1.40 2.07 45,857 0 644 46,500 5.53 7.62 44,062 0 2,438 46,500 5.53 7.62 44,062 0 2,438 46,500 8.49 10.42 36,421 0 10,080 46,500 9.89 11.53 24,778 5,000 16,723 46,500 9.92 12.38 0 25,000 21,500 46,500 Portfolio Performance (%) 211 City of Clearwater Employees Pension Fund Multi Employer Property Trust as of 12/31/17 Cash & Equiv $0 0.00% Real Estate $46,500 100.00% Periods from 9/10 to 12/17 Alpha Beta R-Squared -0.28 0.90 0.70 Annualized Return% 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 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 M 1 T Annualized Standard Deviation% M Multi Employer Property 1 NCREIF ODCE T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.92 12.38 0.22 1.99 1.69 0.15 4.88 7.21 0.00 -1.86 Asset Allocation ($000) Risk/Return Analysis 212 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/17 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 Last 4 Years Last 5 Years Last 6 Years Last 7 Years 9.90 3.72 1.90 0.86 -9.46 1.40 63 2.07 45 24.28 11.26 7.01 3.66 -17.75 5.53 61 7.62 44 21.34 10.18 7.62 4.75 -13.67 6.77 58 8.19 42 20.42 11.36 7.80 4.21 -10.75 8.49 45 10.42 32 20.80 12.67 10.36 6.57 -8.80 9.40 58 10.93 40 22.98 12.54 10.14 6.15 -6.64 9.89 51 11.53 36 24.13 12.44 10.63 7.36 -5.45 9.00 71 11.43 38 23.58 12.70 10.54 6.92 -3.33 9.57 63 12.07 32 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% M O M O M O M O M O M O M O M O 213 City of Clearwater Employees Pension Fund Calendar Year Performance Comparison Total Returns of Real Estate Portfolios Years Ending December High 1st Qt Median 3rd Qt Low M Multi Employer Property Trust Net Ret Rank O NCREIF ODCE Fund Index Net Ret Rank 2017 2016 2015 2014 2013 2012 2011 24.28 11.26 7.01 3.66 -17.75 5.53 61 7.62 44 21.94 10.36 8.09 3.14 -17.21 8.02 51 8.76 42 32.62 15.72 11.34 2.44 -21.05 12.00 47 15.01 31 37.89 20.64 13.16 8.71 -11.08 12.21 56 12.49 54 32.69 15.04 10.44 3.47 -7.29 11.83 43 13.94 30 35.36 17.62 11.52 5.85 -7.03 4.70 79 10.94 54 33.63 17.51 12.45 3.63 -15.59 12.99 46 15.99 28 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% M O M O M O M O M O M O M O 214 City of Clearwater Employees Pension Fund December 31, 2017 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 12/17 9/17 6/17 3/17 12/16 20.42 11.36 7.80 4.21 -10.75 8.49 45 10.42 32 20.33 11.91 9.84 6.02 -12.26 9.11 61 10.84 37 20.47 12.13 9.50 4.15 -13.71 9.82 48 11.34 32 21.01 12.68 10.47 5.73 -14.33 10.15 54 11.78 33 22.45 13.90 11.63 5.69 -13.60 10.72 60 12.06 44 -15% -10% -5% 0% 5% 10% 15% 20% 25% M 1 M 1 M 1 M 1 M 1 Multi Employer Property Trust Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -8.0% -7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% -0.7 -1.2 0.0 0.0 0.3 -0.6 0.1 -0.1 -0.5 -1.1 -0.5 -0.6 0.6 -0.4 -0.2 -0.7 -0.5 -0.3 -0.6 -0.7 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. NCREIF ODCE 215 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 230Annualized Rate of Return0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 -6.0 -3.2 -0.4 2.3 5.2 8.0 10.8 13.6 16.4 19.1 21.9 M 1 MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Multi Employer Property Trust 1 NCREIF ODCE Median 8.49 45 1.45 6 10.42 32 1.59 10 7.80 7.70 Annualized Rate of Return0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 -4.0 -1.2 1.5 4.3 7.2 10.0 12.8 15.6 18.4 21.1 23.9 M 1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Multi Employer Property Trust 1 NCREIF ODCE Median 9.89 51 1.52 3 11.53 36 1.47 2 10.14 8.30 216 City of Clearwater Employees Pension Fund Risk Measure Summary Multi Employer Property Trust Quarterly Periods Ending 12/31/17 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 0.73 0.00 1.29 1.43 5.53 5.53 0.15 0.68 0.02 0.96 32.24 6.86 0.34 -5.84 0 4 1.70 2.07 7.62 7.62 0.32 21.02 0 12 0.81 0.08 1.29 3.15 5.53 12.00 1.45 0.82 -0.01 0.86 5.56 9.87 0.80 -2.26 0 12 1.70 3.82 7.62 15.01 1.59 6.29 0 20 0.86 0.15 1.29 3.53 5.53 12.79 1.52 0.87 -0.03 0.81 6.35 11.04 0.88 -1.71 0 20 1.70 3.86 7.62 15.01 1.47 7.65 1 28 0.80 0.10 -0.12 4.72 4.70 15.44 1.99 0.90 -0.28 0.70 4.88 10.77 1.22 -1.86 0 29 1.70 4.99 7.62 18.27 1.69 7.21 217 City of Clearwater Employees Pension Fund Molpus Woodlands Fund III as of 12/31/17 -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 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 Molpus Woodlands Fund III NCREIF Timberland Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 6/30/11 Molpus Woodlands Fund III NCREIF Timberland Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.00 1.52 7,694 0 0 7,694 1.43 3.63 7,729 -146 110 7,694 1.43 3.63 7,729 -146 110 7,694 2.92 3.72 7,468 -428 653 7,694 6.08 6.23 6,205 -585 2,074 7,694 4.44 5.99 111 5,482 2,100 7,694 Portfolio Performance (%) 218 City of Clearwater Employees Pension Fund Molpus Woodlands Fund III as of 12/31/17 Real Estate $7,694 100.00% Periods from 6/11 to 12/17 Alpha Beta R-Squared 0.35 0.49 0.17 Annualized Return% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 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 M 1 T Annualized Standard Deviation% M Molpus Woodlands Fund II 1 NCREIF Timberland Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 4.44 5.99 0.23 4.55 4.20 0.09 0.93 1.37 0.00 -0.36 Asset Allocation ($000) Risk/Return Analysis 219 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low M Molpus Woodlands Fund III Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years 9.90 3.72 1.90 0.86 -9.46 0.00 80 1.52 61 24.28 11.26 7.01 3.66 -17.75 1.43 82 3.63 75 21.34 10.18 7.62 4.75 -13.67 2.36 80 3.11 78 20.42 11.36 7.80 4.21 -10.75 2.92 78 3.72 77 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% M 1 M 1 M 1 M 1 220 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 Molpus Woodlands Fund III Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 2017 2016 2015 2014 2013 2012 24.28 11.26 7.01 3.66 -17.75 1.43 82 3.63 75 21.94 10.36 8.09 3.14 -17.21 3.30 74 2.59 77 32.62 15.72 11.34 2.44 -21.05 4.03 70 4.97 66 37.89 20.64 13.16 8.71 -11.08 7.02 78 10.50 67 32.69 15.04 10.44 3.47 -7.29 15.16 24 9.68 54 35.36 17.62 11.52 5.85 -7.03 0.77 87 7.75 70 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% M 1 M 1 M 1 M 1 M 1 M 1 221 City of Clearwater Employees Pension Fund December 31, 2017 Cumulative Performance Comparison Total Returns of Real Estate Portfolios High 1st Qt Median 3rd Qt Low M Molpus Woodlands Fund III Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 12/17 9/17 6/17 3/17 12/16 20.42 11.36 7.80 4.21 -10.75 2.92 78 3.72 77 20.33 11.91 9.84 6.02 -12.26 4.98 76 5.24 76 20.47 12.13 9.50 4.15 -13.71 4.54 74 5.54 71 21.01 12.68 10.47 5.73 -14.33 4.47 77 5.67 75 22.45 13.90 11.63 5.69 -13.60 4.77 78 5.97 74 -15% -10% -5% 0% 5% 10% 15% 20% 25% M 1 M 1 M 1 M 1 M 1 Molpus Woodlands Fund III Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -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% -1.4 6.9 2.3 -2.6 -0.6 -0.9 -1.8 0.1 -1.4 -0.3 0.0 0.8 -0.3 -0.5 0.2 1.3 -0.6 -0.3 0.4 -1.5 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. NCREIF Timberland Index 222 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios 237Annualized Rate of Return0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 -6.0 -3.2 -0.4 2.3 5.2 8.0 10.8 13.6 16.4 19.1 21.9 M1 MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Molpus Woodlands Fund III 1 NCREIF Timberland Index Median 2.92 78 1.92 14 3.72 77 1.18 2 7.80 7.70 Annualized Rate of Return0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 -4.0 -1.2 1.5 4.3 7.2 10.0 12.8 15.6 18.4 21.1 23.9 M1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank M Molpus Woodlands Fund III 1 NCREIF Timberland Index Median 6.08 75 4.42 33 6.23 73 3.20 30 10.14 8.30 223 City of Clearwater Employees Pension Fund Risk Measure Summary Molpus Woodlands Fund III Quarterly Periods Ending 12/31/17 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 0.40 0.25 0.00 0.96 1.43 1.43 0.86 -0.35 0.38 0.22 0.68 -1.65 1.56 -1.38 0 4 0.60 1.52 3.63 3.63 0.84 3.29 1 11 0.81 2.10 0.42 -0.55 2.71 1.43 4.03 1.92 0.88 -0.09 0.32 1.30 2.86 1.65 -0.48 1 11 -0.26 1.86 2.59 4.97 1.18 2.81 2 18 0.99 2.10 0.40 -0.55 7.86 1.43 16.17 4.42 0.71 0.41 0.27 1.32 8.23 3.98 -0.04 1 19 -0.26 6.02 2.59 10.64 3.20 1.86 7 19 0.76 2.02 0.35 -1.35 7.86 -2.71 16.17 4.22 0.49 0.35 0.17 1.00 8.53 4.28 -0.36 2 24 -0.35 6.02 1.13 10.64 3.47 1.66 224 City of Clearwater Employees Pension Fund Molpus Woodlands Fund IV as of 12/31/17 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/15 Molpus Woodlands Fund IV NCREIF Timberland Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 9/30/15 Molpus Woodlands Fund IV NCREIF Timberland Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 0.00 1.52 4,233 -30 0 4,203 1.10 3.63 4,247 -91 47 4,203 1.10 3.63 4,247 -91 47 4,203 1.33 3.60 118 3,947 138 4,203 Portfolio Performance (%) 225 City of Clearwater Employees Pension Fund Molpus Woodlands Fund IV as of 12/31/17 Real Estate $4,203 100.00% Periods from 9/15 to 12/17 Alpha Beta R-Squared N/A N/A N/A Annualized Return% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 M 1 T Annualized Standard Deviation% M Molpus Woodlands Fund IV 1 NCREIF Timberland Index T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 1.33 3.60 0.54 2.89 1.88 0.11 0.28 1.63 0.00 -0.71 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 226 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low M Molpus Woodlands Fund IV Return Rank 1 NCREIF Timberland Index Return Rank Last Qtr Last Year Last 2 Years 9.90 3.72 1.90 0.86 -9.46 0.00 80 1.52 61 24.28 11.26 7.01 3.66 -17.75 1.10 82 3.63 75 21.34 10.18 7.62 4.75 -13.67 2.21 80 3.11 78 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 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 Fund IV Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 2017 2016 24.28 11.26 7.01 3.66 -17.75 1.10 82 3.63 75 21.94 10.36 8.09 3.14 -17.21 3.34 74 2.59 77 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% M 1 M 1 228 City of Clearwater Employees Pension Fund December 31, 2017 Molpus Woodlands Fund IV Value Added Analysis - Net of Fee 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% -3.2 -0.3 -1.0 -0.7 2.7 -0.1 -0.5 -0.4 -1.5 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. NCREIF Timberland Index 229 City of Clearwater Employees Pension Fund Risk Measure Summary Molpus Woodlands Fund IV Quarterly Periods Ending 12/31/17 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 0.30 0.00 0.00 0.71 1.10 1.10 0.61 -0.12 0.14 0.03 0.41 -2.10 1.27 -1.95 0 4 0.60 1.52 3.63 3.63 0.84 3.29 3 6 0.42 2.09 0.11 -1.39 3.95 -1.97 5.09 2.95 0.12 0.11 0.00 0.27 6.40 3.15 -0.71 1 8 -0.26 1.86 2.59 3.64 1.21 2.53 230 City of Clearwater Employees Pension Fund Hancock as of 12/31/17 -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 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 1.52 8,267 -63 0 8,204 -0.37 3.63 8,405 -170 -31 8,204 -0.37 3.63 8,405 -170 -31 8,204 2.24 3.72 4,860 2,863 481 8,204 4.01 6.23 3,458 3,725 1,021 8,204 4.97 6.91 1,263 5,686 1,255 8,204 Portfolio Performance (%) 231 City of Clearwater Employees Pension Fund Hancock as of 12/31/17 Real Estate $8,204 100.00% Periods from 5/12 to 12/17 Alpha Beta R-Squared -1.34 1.57 0.70 Annualized Return% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 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 4.97 6.91 0.25 7.09 4.47 0.10 0.66 1.49 0.00 -0.39 Asset Allocation ($000) Risk/Return Analysis 232 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low H Hancock Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank Last Qtr Last Year Last 2 Years Last 3 Years 9.90 3.72 1.90 0.86 -9.46 0.00 80 1.52 61 24.28 11.26 7.01 3.66 -17.75 -0.37 84 3.63 75 21.34 10.18 7.62 4.75 -13.67 1.12 83 3.11 78 20.42 11.36 7.80 4.21 -10.75 2.24 78 3.72 77 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% H 1 H 1 H 1 H 1 233 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 2017 2016 2015 2014 2013 24.28 11.26 7.01 3.66 -17.75 -0.37 84 3.63 75 21.94 10.36 8.09 3.14 -17.21 2.64 76 2.59 77 32.62 15.72 11.34 2.44 -21.05 4.51 67 4.97 66 37.89 20.64 13.16 8.71 -11.08 4.58 83 10.50 67 32.69 15.04 10.44 3.47 -7.29 8.91 57 9.68 54 -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% H 1 H 1 H 1 H 1 H 1 234 City of Clearwater Employees Pension Fund December 31, 2017 Cumulative Performance Comparison Total Returns of Real Estate Portfolios High 1st Qt Median 3rd Qt Low H Hancock Net Ret Rank 1 NCREIF Timberland Index Net Ret Rank 12/17 9/17 6/17 3/17 12/16 20.42 11.36 7.80 4.21 -10.75 2.24 78 3.72 77 20.33 11.91 9.84 6.02 -12.26 3.88 80 5.24 76 20.47 12.13 9.50 4.15 -13.71 3.82 77 5.54 71 21.01 12.68 10.47 5.73 -14.33 3.71 79 5.67 75 22.45 13.90 11.63 5.69 -13.60 3.91 80 5.97 74 -15% -10% -5% 0% 5% 10% 15% 20% 25% H 1 H 1 H 1 H 1 H 1 Hancock Value Added Analysis - Net of Fee 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17 -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% -3.5 -1.2 -1.4 5.6 -1.2 -1.6 -1.6 -1.1 -2.3 -0.9 -0.9 3.7 -0.2 -1.2 -1.2 2.7 -0.9 -0.9 -0.6 -1.5 Cumulative Value Added 2 Yr Rolling Avg (Annualized) Quarterly Value Added vs. NCREIF Timberland Index 235 City of Clearwater Employees Pension Fund Return vs Risk Total Returns of Real Estate Portfolios Annualized Rate of Return0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 -6.0 -3.2 -0.4 2.3 5.2 8.0 10.8 13.6 16.4 19.1 21.9 H 1 MedianRiskMedian Return Historical Standard Deviation of Return 3 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank H Hancock 1 NCREIF Timberland Index Median 2.24 78 4.05 31 3.72 77 1.18 2 7.80 7.70 Annualized Rate of Return0.0 8.0 16.0 24.0 32.0 40.0 48.0 56.0 -4.0 -1.2 1.5 4.3 7.2 10.0 12.8 15.6 18.4 21.1 23.9 H 1 MedianRiskMedian Return Historical Standard Deviation of Return 5 Years Ending 12/31/17 Annualized Net of Fee Return Standard Deviation Value Rank Value Rank H Hancock 1 NCREIF Timberland Index Median 4.01 80 6.46 38 6.23 73 3.20 30 10.14 8.30 236 City of Clearwater Employees Pension Fund Risk Measure Summary Hancock Quarterly Periods Ending 12/31/17 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 3 1 -0.10 0.00 -0.23 0.00 -0.37 -0.37 0.23 -0.20 -0.17 0.32 -5.38 6.14 0.77 -5.07 0 4 0.60 1.52 3.63 3.63 0.84 3.29 9 3 0.63 1.89 0.17 -0.54 5.67 -0.37 4.72 4.05 1.66 -0.89 0.28 0.45 1.10 3.57 -0.40 1 11 -0.26 1.86 2.59 4.97 1.18 2.81 13 7 0.68 1.89 0.15 -1.83 11.90 -0.37 12.16 6.42 1.54 -1.26 0.62 0.60 2.52 4.35 -0.44 1 19 -0.26 6.02 2.59 10.64 3.20 1.86 14 8 0.76 1.89 0.18 -1.83 11.90 -0.37 12.16 6.88 1.57 -1.30 0.70 0.71 3.14 4.33 -0.36 1 21 -0.26 6.02 2.59 10.64 3.59 1.85 237 City of Clearwater Employees Pension Fund U.S. Real Estate Investment Fund as of 12/31/17 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/15 U.S. Real Estate Investment Fund NCREIF ODCE Fund Index Net of Fee Returns Qtr YTD 1 Year 3 Year 5 Year 10 Year Incept 12/31/15 U.S. Real Estate Investment Fund NCREIF ODCE Fund Index Asset Growth ($000) Beginning Market Value Net Contributions & Withdrawals Gain/Loss + Income Ending Market Value 2.33 2.07 11,635 0 271 11,906 8.36 7.62 11,081 -95 920 11,906 8.36 7.62 11,081 -95 920 11,906 9.53 8.19 5,708 4,204 1,993 11,906 Portfolio Performance (%) 238 City of Clearwater Employees Pension Fund U.S. Real Estate Investment Fund as of 12/31/17 Real Estate $11,906 100.00% Periods from 12/15 to 12/17 Alpha Beta R-Squared N/A N/A N/A Annualized Return% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 u 1 T Annualized Standard Deviation% u U.S. Real Estate Investm 1 NCREIF ODCE Fund I T 91-Day Treasury Bill Annualized Net Ret Std. Dev. Sharpe Ratio Info Ratio 9.53 8.19 0.59 4.55 3.33 0.11 1.97 2.28 0.00 0.51 Asset Allocation ($000) Risk/Return Analysis (Number of returns < 12) 239 City of Clearwater Employees Pension Fund Cumulative Performance Comparison Total Returns of Real Estate Portfolios Periods Ending 12/17 High 1st Qt Median 3rd Qt Low u U.S. Real Estate Investment Fund Net Ret Rank 1 NCREIF ODCE Fund Index Net Ret Rank Last Qtr Last 2 Qtrs Last 3 Qtrs Last 4 Qtrs 9.90 3.72 1.90 0.86 -9.46 2.33 36 2.07 45 16.43 6.48 3.82 2.01 -10.16 4.67 37 3.98 46 21.44 9.11 5.78 3.51 -14.66 5.91 48 5.75 50 24.28 11.26 7.01 3.66 -17.75 8.36 39 7.62 44 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% u 1 u 1 u 1 u 1 240 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 u U.S. Real Estate Investment Fund Net Ret Rank 1 NCREIF ODCE Fund Index Net Ret Rank 2017 2016 24.28 11.26 7.01 3.66 -17.75 8.36 39 7.62 44 21.94 10.36 8.09 3.14 -17.21 10.72 23 8.76 42 -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% u 1 u 1 241 City of Clearwater Employees Pension Fund Risk Measure Summary U.S. Real Estate Investment Fund Quarterly Periods Ending 12/31/17 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 1.10 0.75 1.18 2.33 8.36 8.36 1.13 1.15 -0.06 0.85 6.66 6.55 0.95 0.74 0 4 1.70 2.07 7.62 7.62 0.32 21.02 0 8 1.16 0.63 0.64 4.53 8.36 12.57 2.53 1.18 -0.01 0.33 3.53 7.56 2.50 0.51 0 8 1.70 2.18 7.62 8.76 0.36 20.98 242 REPORT EXPLANATIONS Executive Summary The Executive Summary provides an overview of the fund's performance. It shows the performance in dollars, percent, and relative to the investment policy. These statistics are provided over different time periods including up and down markets. All rates of return are annualized if the period for which they are calculated exceeds one year. Account Reconciliation: This section shows the performance of the account in dollars, during the most recent quarter, the calendar year, and since the inception date. The Beginning Value is the value at the start of each period. The Ending Value shows the value as of the date of the report. Net contributions are the total contributions less the total withdrawals during the period. The Investment G/L is the gain or loss resulting from the investments. It is the difference between the beginning and ending values that cannot be explained by the net contributions. Positive investment G/L figures represent a profit, and negative values represent a loss. Investment Policy: This section defines the benchmark against which the fund is being compared. Generally, this is the most important objective for a fund to achieve. The performance of the fund relative to this measure over longer periods of time, such as market cycles, is the strongest indicator of the success or failure of the investment strategy. This objective should be reasonable, and the performance of the fund should be measured against the investment policy after adjusting for risk. Trailing Returns: This section shows the cumulative time weighted returns over the last 1 year, 2 years, and so on up through 10 years if available, as well as since the inception date. A positive difference indicates the fund has exceeded the policy's returns. The investor would prefer that this difference be positive for all time periods; however, it is more important for it to be positive for the longer periods rather than the shorter periods. Calendar Year Returns: This section gauges the consistency of performance over one year time periods. Each calendar year of performance represents the return from January 1st through December 31st. Watch out for a trend of declining relative performance in recent periods. Time Weighted Return: This statistic demonstrates a measure of the compound rate of growth in a portfolio. Because this method eliminates the distorting effects created by the size and timing of cash flows, it is used to compare the returns of investment managers. Dollar Weighted Return: This demonstrates the rate of return for an asset or portfolio of assets. It is calculated by finding the rate of return that will set the present values of all cash flows and terminal values equal to the value of the initial investment. The dollar weighted rate of return incorporates the size and timing of cash flows and is equivalent to the internal rate of return (IRR). Returns In Up/Down Markets: This section shows how the fund performed in both up and down markets. The methodology utilized segregates the performance for each time period into the quarters in which the market, as defined by the policy, was positive and negative. Quarters with negative policy returns are treated as down markets, and quarters with positive policy returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. Up market returns are calculated for the fund and the policy based on the up quarters. Down market returns are calculated for the fund and the policy based on the down quarters. The ratio of the fund's return in up markets to that of the policy is the up market capture ratio. The ratio of the fund's return in down markets to that of the policy is the down market capture ratio. Ideally, the fund would have a greater up market capture ratio and a smaller down market capture ratio. 243 Risk Measures The evaluation of a fund's performance should extend beyond return to encompass measures of risk. The next two pages illustrate the level of risk to which the fund has been exposed, and whether the return has been commensurate with the risk taken. All measures are calculated for the fund and the policy as well as the difference between the two. Up to four time periods are evaluated depending on the age of the fund. # Of Negative Qtrs/# Of Positive Qtrs: Number of negative quarters shows the number of quarters in which the return was less than zero. The number of positive quarters is the number of quarterly returns which were greater or equal to zero. Batting Average: The batting average is a measure of consistency. It shows the percent of the quarters the fund has beaten the policy and the percent of the quarters the policy has outperformed the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the policy frequently. Worst Quarter/Best Quarter/Range: The worst quarter is the lowest quarterly return experienced during the period, a measure of downside risk. The best quarter is the highest quarterly return, and the range is the difference of the high and low, and indicates dispersion. Standard Deviation: Standard deviation measures the total volatility of the fund, by measuring dispersion. Higher standard deviation indicates higher risk. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more they vary from one another, the higher the standard deviation. Thus, it measures uncertainty, which is a measure of risk. Alpha/Beta/R-Squared: If the policy is appropriate, then the alpha should be positive, the beta close to one, and the r-squared should be high. Beta measures risk relative to the policy. A beta of 1 suggests risk equivalent to the policy. Higher betas indicate higher relative risk. A beta of 1.2 indicates 20% more risk than the policy. The alpha measures the return adjusted for beta. A higher alpha indicates a higher risk adjusted return. R-squared measures the relationship between the policy and the fund. A high r squared means the returns of the fund can largely be explained by movements of the policy. A higher r-squared indicates a more reliable alpha and beta. R-squared may range from 0 to 100. Beta, alpha and r-squared are derived from regression analysis using the fund and policy returns as the dependent and independent variables respectively. Roughly, one would expect the fund's performance to equal the return of the policy multiplied by the beta plus the alpha. Sharpe Ratio/Treynor Ratio: The Sharpe and Treynor ratios are similar. The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. The Treynor ratio is the excess return per unit of market risk as measured by beta. Both of these should be compared against the corresponding value for the policy. Higher numbers are better, indicating more return for the level of risk that was experienced. Tracking Error/Information Ratio: Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked, or a measure of the deviation from the benchmark. Dividing portfolio return by portfolio tracking error gives the information ratio, which is a risk adjusted performance metric. 244 Quarterly Comparison Analysis ($) This report shows the performance, in dollars, of the fund relative to the objectives. The purpose is to show a hypothetical value that reflects what the account would be worth if it had instead invested in each objective. The column titled "Portfolio" shows the actual values in the portfolio at the end of the quarter. The amount shown for the first date is the same for each objective as that of the fund. This is the amount assumed to be invested in each objective. All other values for the objectives are based on reinvesting the preceding amount, earning the return of the objective, and adjusting for contributions or withdrawals to the fund. A positive difference between the fund and an objective represents the additional dollars that are in the fund that would not be available if the fund had actually experienced the return of the objective. A negative difference may be thought of as the cost incurred in experiencing the actual performance instead of the objective performance. The report will show results since the inception of the fund, or quarterly results over the last five years, whichever is less. Quarterly Comparison Analysis (%) This page compares the returns of the portfolio to the returns of the investment policy and to the other investment objectives quarter by quarter for the last five years. The last row shows the returns since inception. The purpose of this page is to indicate how closely the portfolio has tracked its objectives, particularly the investment policy. If the quarterly differences are small, then the portfolio has tracked the objectives closely. Wide discrepancies suggest that the portfolio is being invested in a fashion which does not resemble the underlying objective. It is not likely a portfolio invested in stocks and/or bonds will track a fixed (e.g. 10%) rate of return, or inflation very closely. However, a portfolio invested in securities should be able to track an index comprised of similar securities. This page also provides a measure of the portfolio's ability to meet its objectives frequently. If the portfolio often outperforms the objective, then the difference column will have a preponderance of positive values. If the investment policy or the objectives have changed over time, the heading at the top of each column will only reflect the current policy and objectives, even though the quarterly returns include the alterations. Market Values and Cash Flows This page summarizes the market values, cash flows, unrealized net gain or loss and returns for the fund. Net flows refer to the contributions less the withdrawals from the fund. This page illustrates the change in market value through time, and suggests whether changes were due to contributions, withdrawals, or unrealized investment profits. 245 EQUITY INVESTMENT STYLES In an attempt to achieve diversification, investors may invest in a variety of asset classes. Different asset classes, such as small, mid, large and all capitalization, offer vastly different levels of risk and potential rewards, but so does investment style diversification. Growth and Value investments tend to go in and out of favor in a cyclical pattern. Dividing your portfolio among asset classes that do not respond to the same market environments the same way at the same time has the potential to help minimize the effects of market volatility, as well as help to maximize the chances of increased returns over time. Ideally, when investments in one class are performing poorly, the assets in another class are doing well. The gains in the latter would potentially offset the losses in the former, minimizing the overall effect on your portfolio. Note that one can diversify away much of the risks of holding a single investment, but one cannot diversify away the risks of simply being invested in the market. Equity investment managers will typically fall into a particular "Style" category, purchasing stocks with either growth or value characteristics. Understanding the intricacies of the particular equity styles allows you to combine investment managers with complementary styles more efficiently. Or, if you select a single investment style, knowledge of the style categories may help you plan for the ups and downs associated with a particular style. Below are descriptions of the different investment styles. The Core Style The philosophy behind a core investment style is to have no bias towards growth or value, only the quality of the position. Typically a core portfolio searches to buy shares in companies that an investment manager believes would perform well in all market environments. As a result, they tend to contain a mixture of both growth and value shares. The Value Style A simple way to describe value investing is that it is an approach that seeks to buy companies that offer the best value for the money. Value managers look for companies with prices that are believed to be undervalued relative to the market. Undiscovered companies or stocks that have price movements that do not correspond to the company's long-term fundamentals are generally considered to be value investments. Relative value: investment will employ a value-oriented strategy that is "diluted” in nature in comparison with the true value style. Relative value managers tend to outperform their deeper value peers during periods when growth is outperforming value, however tend to trail during market conditions that favor a deeper value posture. Relative value managers have a definite value emphasis, but often have some growth overlays in security selection. True value: investment style exhibits characteristics similar to those of the Russell 1000 Value Index. We often times refer to true value as a "plain vanilla" value investment approach. This type of portfolio will hold many of the same positions as the Russell 1000 Value Index, or positions whose characteristics in aggregate are similar to the overall characteristics of the Index. Deep value: investing is the extreme of the value-oriented styles. A deep value strategy will avoid stocks that are the latest market fad. A deep value manager will typically invest in companies or industries that are out of favor, with the anticipation that the tides will turn and the investment will pay off. Deep value managers tend to demonstrate performance volatility, as they usually outperform their less value -biased peers during periods when value is outperforming growth. The reverse takes place when growth is outperforming, the deeper value styles will generally underperform their relative and true value peers. Core GARP (Growth at a Reasonable Price) True Growth Aggressive Growth Relative Value True Value Deep Value 246 The Growth Style Investment managers who chose to implement a growth style search for companies that are growing their earnings at a rapid pace. The companies are expected to grow faster than the stock market average. A growth investor tends to aim for big gains over the long term and must be willing to withstand the ups and downs of the growth oriented market. Growth at a Reasonable Price ("GARP") investing combines the search for sustainable earnings growth with an emphasis on valuation. GARP investing reflects the desire to find companies that could be undervalued, but have solid sustainable growth potential. A GARP investment has historically been favored when the economy begins to slow because the consistent earnings of high quality companies become increasingly attractive. GARP investment managers maintain, generally speaking, that over long periods of time, stocks go up for one reason - underlying earnings growth. True Growth: A true growth portfolio will typically display characteristics similar to those of the Russell 1000 Growth Index. A manager who employs a true growth management style will purchase many of the same companies that are in the Russell 1000 Growth Index, or a portfolio of holdings whose characteristics are similar to those of the Index. They seek to purchase only companies that remain faithful to the category of a "growth" investment style. Aggressive Growth: Investment managers that seek the highest of earnings growth, regardless of valuation, are considered aggressive growth managers. They seek aggressive and sometimes emerging growth stocks, and are often dramatically overweight traditional growth-oriented sectors like Technology, for example. Which is the best style? Many investors buy into a particular investment style that experienced above- average performance results after those performance results were achieved, only to sell out of that particular style when it begins to suffer a more difficult performance run. We maintain that it is prudent for investors not only to seek out investment managers who have demonstrated consistency as it relates to people, philosophy/process and performance, but also to choose managers in whom they can maintain conviction over the long term, so as to avoid the untimely cost of switching styles. We believe that understanding the uniqueness of each investment style is key to staying the course. Source: Wells Fargo Advisors, LLC 247 BLANK INTENTIONALLY Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#18-4480 Agenda Date: 4/16/2018 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Pension Trustees Agenda Number: 4.6 SUBJECT/RECOMMENDATION: Determine Trustees’ expected rate of return for pension plan investments for current year, each of the next several years, and for the long term thereafter, in accordance with FL Statutes 112.661(9). SUMMARY: Florida Statutes 112.661(9) requires an annual determination of expected rates of return be filed with the Florida Department of Management Services, with the plan ’s sponsor, and with the consulting actuary. Staff is recommending the current plan investment rate of return assumption of 7.0%, net of investment-related fees, as the expected annual rate of return for the current year, for each of the next several years, and for the long term thereafter. APPROPRIATION CODE AND AMOUNT: N/A Page 1 City of Clearwater Printed on 4/11/2018 BLANK INTENTIONALLY