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Deferred Compensation Plan 1Q17Performance Review Metropolitan St. Louis Sewer District Deferred Compensation Plan 1st Quarter 2017 Pavilion Advisory Group Inc. 227 W. Monroe Street, Suite 2020 Chicago, IL 60606 Phone: 312-798-3200 Fax: 312-902-1984 www.pavilioncorp.com 1 Capital Markets Review 1 2 Executive Summary 10 3 Performance Summary 13 4 Plan Assets 20 5 Manager Evaluation 23 6 Appendix 57 Table Of Contents Capital Markets Review 1 Capital Markets Review Summary 6.8 6.1 2.5 7.2 7.7 11.4 3.6 1.8 15.4 17.2 26.2 11.7 10.8 17.2 11.3 MSCI Global ACWI IMI S&P 500 Russell 2000 MSCI EAFE S&P Dev ex U.S. SC MSCI EMF HFRI Equity Hedged* BBG Barclays Global Agg. Performance: Past Quarter and Year (%) Past Quarter Past 12 Months Equities (Stocks)Synchronizing Global Growth §Accelerating global growth propelled risk assets higher,as robust economic data continued to affirm improving expectations demonstrated by employment growth, positive business and sentiment surveys,credit expansion,and normalizing inflation.The widespread strength of underlying economic data insulated and allowed capital markets to digest events ranging from the triggering of Article 50 (BREXIT)to U.S.political turmoil. §With inflation rates near central banks’targeted levels,global monetary policy remained generally accommodative.While the U.S.path to normalization is still expected to be gradual,strengthening data supported a March rate increase for the second consecutive quarter and generated little drama.During the March meeting,the Federal Open Market Committee (“FOMC”)discussed the future wind down of its balance sheet operations,spurring spread widening in mortgage1.8 0.8 -0.4 2.7 0.1 2.5 -2.3 7.2 1.4 1.0 -1.9 0.4 0.6 16.9 0.3 5.3 8.7 13.5 5.5 2.4 -5 0 5 10 15 20 25 30 BBG Barclays Global Agg. BBG Barclays Agg. WGBI ex-U.S. Hedged BofAML High Yield Cons. 91-Day T-Bills NAREIT Bloomberg Commodity Alerian MLP HFRI FoF:Cons.* CPI * HFRI data are subject to revision. Source: FactSet & BloombergFixed Income (Bonds)Alternativeswind down of its balance sheet operations,spurring spread widening in mortgage related securities. §Global growth helped boost domestic and international equities.After turning positive in the third quarter of 2016,domestic profit growth accelerated in the fourth quarter with first quarter earnings expected to maintain the upward trend. Outside the U.S.,emerging market equities rebounded during the quarter, recovering from the fourth quarter’s U.S.dollar headwinds. §Domestically,interest rates flattened at the front-end of the curve in anticipation of the FOMC decision to hike rates,marginally detracting from performance. Economic conditions also lead to spread compression for most sectors,driving outperformance relative to similar duration Treasuries.Internationally,a weakening U.S.dollar helped drive solid gains,particularly for local emerging market debt,which surged +6.5%. §Commodity prices turned down during the quarter,dragged by energy and agriculture prices.Warmer than average temperatures and increasing oil production adversely affected prices.Trailing one-year returns,however,remain strong,buoyed by oil’s rise from $37 a barrel at the end of the first quarter of 2016. 2 Capital Markets Review Asset Class Outlook Equities §The first quarter witnessed another strong performance by equity markets.While many suggest performance is being driven by anticipated policy changes,dubbing it the “Trump Rally,”we believe improving fundamentals have been at least as strong a force. First,the significant rebound in corporate profits has almost certainly enhanced performance.FactSet’s consensus analysts’estimate for first quarter S&P 500 earnings growth is 8.9%,which would be the strongest earnings growth rate since quarter four of 2013.Second,these earnings improvements and performance are not unique to U.S. markets.The rising tide of global growth appears to be lifting all boats,as emerging markets and Europe also posted strong performance over the quarter.Absent interruptions from geopolitical risks,we anticipate growth will continue to support equity market performance.Additionally,any U.S.policy enhancements should provide tailwinds for the U.S.equity market. Fixed Income §While the FOMC decided to raise rates during the quarter,officials made clear future rate increases likely would be very gradual.Minutes from the meeting also revealed that committee members began to focus attention on reducing the Federal Reserve’s (“Fed”) balance sheet (reversing QE).Based on guidance provided by Fed leadership,we expect balance sheet reduction will be relatively gradual undertaken largely by allowing2.5% 3.0% 3.5% Projected vs Expected Path of Fed Funds 500 700 900 1100 1300 1500 1700 1900 Jun-03Dec-04Jun-06Dec-07Jun-09Dec-10Jun-12Dec-13Jun-15Dec-16Billions of DollarsU.S. Corporate Profits U.S. Recession Source: Federal Reserve FRED Data Seasonally Adjusted Annual Rate balance sheet reduction will be relatively gradual undertaken largely by allowing existing assets to mature,without replacement -the current practice.Given the challenge of removing accommodation using two levers,rate increases and balance sheet reduction,rather than just one,Fed officials likely will be even more cautious pursuing rate increases.Any policy adjustment is unlikely to be implemented much before year end.Despite rising yields,we continue to believe investors are well served to maintain some high quality duration risk as portfolio protection including exposure to select securitized sectors such as Non-Agency MBS,CMBS,and off-the-run ABS.With the further tightening of credit spreads and with material dollar appreciation possibly having run its course,opportunities in emerging market debt deserve careful evaluation as the risk return benefits continue to move in its favor. Real Assets (Inflation Protection Assets) §Inflation is now approaching or slightly exceeding policy targets in many developed markets.Despite the recent uptick,a modest pullback is anticipated as year-over-year price comparisons in the energy sector become more favorable.In the U.S.,we do not anticipate inflation levels sustaining an increase much above the Federal Reserve’s 2% target near-term.As a result,equity positions should provide some protection against near term inflation.In the current low yield environment,we maintain our view that global listed infrastructure likely provides a diversifying income stream with a slightly lower volatility profile than commodities.Within commodities and infrastructure,we continue to favor the energy complex.We maintain a cautious view on REITs,due to historical correlations with long duration instruments. 0.5% 1.0% 1.5% 2.0% 2.5% May-17 May-18 May-19 May-20Yield Futures FOMC Median "Dots"FOMC Neutral Rate -1.0 0.0 1.0 2.0 3.0 Jul-15Aug-15Sep-15Oct-15Nov-15Dec-15Jan-16Feb-16Mar-16Apr-16May-16Jun-16Jul-16Aug-16Sep-16Oct-16Nov-16Dec-16Jan-17Feb-17Year-Over-Year InflationInflation rates rising United States European Union United Kingdom Japan Source: Bloomberg Source: Bloomberg 3 Capital Markets Review Key Market Risks Fixed Income Equities Financial StressesValuationsCyclicalCurrent Risk Levels Source: BloombergLowHigh Cyclical Risks Remain Low with Regional Disturbances Present §Ongoing Threat of European Fractures: 0 5 10 15 20 25 30 35 40 0 10 20 30 40 50 60 70 80 UniCredit PriceE.U. Bank Index PriceEuropean Union Bank Stocks versus UniCredit MSCI Euro Bank Index (lhs)UniCredit (rhs) Source: Federal Reserve FRED Data Source: Bloomberg, FactSet, Recession Alert, & Pavilion Analysis §Ongoing Threat of European Fractures: •The results of French elections could reduce or increase the risks of a French departure from the union. •The Greek bailout remains unpopular in Germany,and with fall elections looming German negotiators have thwarted efforts toward Greek debt relief,forestalling any agreement on the final and much needed payment of the Greek bailout.Will we see a repeat of 2015? •While banks in other E.U.countries have addressed re-capitalization issues,Italy has not,and the underperformance of Italian banks will make recapitalization efforts more difficult going forward potentially setting the stage for a tightening of European financial conditions. §Policy Misstep or Shortfall:The failure to pass healthcare reform has increased uncertainty regarding the administration’s ability to advance other elements of its business friendly agenda.Additionally,the absence of a clear international policy or doctrine appears to have elevated geopolitical risks.With uncertainty rising,capital investment may slow and investors may chose to reduce risk exposures –risk off. §Resurgence in Dollar Appreciation:In 2014 and 2015,the rapid rise of the dollar tightened global financial conditions,slowing global growth.With yields rising in the U.S.,there is concern of a possible repeat of these circumstances.Fortunately,the dollar has been fairly steady despite rising yi elds;however,anything triggering further rapid appreciation –such as a flight to quality –likely would dampen growth. 0.5% 0.6% 0.7% 0.8% 0.9% 1.0% 1.1% 1.2% 1.3% 1.4% 70 75 80 85 90 95 100 Mar-15Jun-15Sep-15Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17YieldDollar IndexU.S. Dollar Holding Steady U.S. Dollar Index: Major Currencies (lhs)2-Year Yield (rhs) 4 Capital Markets Review Economy Improving Growth Greets a New President Source: Federal Reserve, BOL Fed Balance Sheet and Mortgage Rates Source: Federal Reserve Real Wage and Salary Growth 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 0 500 1000 1500 2000 2500 3000 Dec-08Dec-09Dec-10Dec-11Dec-12Dec-13Dec-14Dec-15Dec-16Rates (%)$ Billions -Fed Bond HoldingsFed Treasury Bonds Fed Mortgage bonds 30-Year Mortgage 15-Year Mortgage -6 -4 -2 0 2 4 6 8 10 Jan-60Jan-63Jan-66Jan-69Jan-72Jan-75Jan-78Jan-81Jan-84Jan-87Jan-90Jan-93Jan-96Jan-99Jan-02Jan-05Jan-08Jan-11Jan-14Jan-17Percent§With expectations of an improving U.S.economy,investors looked for signals that could dampen enthusiasm.President Trump’s stamp on the federal government began with regulatory rollbacks affecting energy,financial oversight and trade.Policy mi ssteps included targeted travel restrictions and an initial defeat on healthcare reform,which cast some doubt on Congress’s ability to quickly implement a broader agenda.Tax reform,including individual and corporate rate cuts,was not pursued,and put pressure on equities,as expectations of higher profit margins diminished absent lower taxes. §The Federal Reserve (“Fed”)raised interest rates 25 bps during March,in-line with market predictions for scale,if not a bit early on timing.Fed balance sheet reductions remain as a powerful tool for influencing interest rates,generally in a higher direction,when the Fed decides to reduce its bond holdings.U.S.dollar movements during the quarter were heavily influenced by the changing winds of trade policies.Versus European currencies,the dollar was relatively stable,though weaker against the Mexican peso and Japanese yen.The diminished likelihood of trade wars and tariffs reversed the decline of the peso and yen. §Domestic manufacturing showed improvement,owing to an improving global economy and a friendlier regulatory and tax outlook.Unemployment remained low and temporary employment,typically a leading indicator of future payroll growth,improved as well.Housing starts continued to contribute to overall growth,reflecting higher incomes,strengthening consumer balance sheets and continued tight inventories.Despite increasing home prices and rising interest rates,housing costs remain near historic low levels and should allow housing to continue its positive contributions to growth.Real wage gains have been fairly modest throughout the recovery.Continuing improvements in payroll growth should see a reversal in this trend,further sustaining consumer demand.Source: Federal Reserve Source: Federal Reserve Industrial Production 40 50 60 70 80 90 100 110 120 Jan-81Jan-83Jan-85Jan-87Jan-89Jan-91Jan-93Jan-95Jan-97Jan-99Jan-01Jan-03Jan-05Jan-07Jan-09Jan-11Jan-13Jan-15Jan-172012 = 1005 Capital Markets Review Equities First Quarter World and Emerging Market Equity ReturnsFirst Quarter S&P 500 Sector Returns -6.7% -4.0% 2.5% 3.5% 4.6% 5.9% 6.1% 6.4% 6.4% 8.4% 8.4% Energy Telecom Financials Real Estate Industrials Materials S&P 500 Cons Staples Utilities Healthcare Cons Disc 6.9% 6.1%6.4% 7.9%7.2% 11.4% 12.9% 16.8% 11.8% 17.1% 4.4% 10.4% 0.0% 5.0% 10.0% 15.0% 20.0% MSCI S&P MSCI MSCI MSCI MSCI China South Taiwan India South Brazil Growth Outperformed Value in the First Quarter Growth and Emerging Markets Propel Equity Markets Higher §The S&P 500 Index returned +6.1%during the first quarter.Growth-oriented sectors led returns with Information Technology the strongest performing sector during the quarter,followed by Consumer Discretionary and Healthcare.Energy and Telecom were the only sectors to post a loss during the first quarter,marking a reversal from last year in which these were the two strongest performing sectors. §Most developed market equity indices provided similar returns in the 6%to 8%range during the quarter.Emerging Market equities bounced back significantly from the fourth quarter,returning 11.4%,led by India and South Korea.Currency gains contributed to U.S.dollar investor returns for both EAFE and emerging equity markets, as the U.S.dollar depreciated about 2.5%and 3.5%,respectively,against the EAFE and Emerging Market baskets of currencies. §In yet another reversal from 2016,growth outperformed value in the first quarter. While U.S.large-cap stocks outperformed small-cap stocks across styles,within the value space mid-cap stocks were the top performers. Source: Factset, MSCI Source: Factset, S&P 12.6% -10.0%-5.0%0.0%5.0%10.0%15.0% Cons Disc Info Tech MSCI ACWI S&P 500 MSCI World MSCI ACWI x US MSCI EAFE MSCI EM China South Korea Taiwan India South Africa Brazil 3.3%3.8% -0.1% 6.0% 10.2% 8.9% 6.9% 5.3% 8.5% 12.8% -10.0% 0.0% 10.0% 20.0% U.S. Large Cap U.S. Mid Cap U.S. Small Cap Int'l Developed Emerging Mkts Value Growth Source: Factset, MSCI, Russell 6 Source: Bloomberg Barclays Capital Markets Review Fixed Income Best Period Second Best Period Worst Period Second W ors t Period Trailing Ten-Year Credit Spreads Source: Bloomberg Barclays Duration –Ad justed Excess Returns to Treasuries (bps) 2010 2011 2012 2013 2014 2015 2016 1Q17 Aggregat e 171 -114 226 93 10 -53 138 11 Agenc y 77 -25 166 1 10 -133 121 27 MBS 225 -106 91 98 40 -5 -11 -17 ABS 169 52 246 24 53 44 95 22 CM BS 1501 47 841 97 108 -28 236 8 Credi t 192 -322 693 226 -18 -169 442 47 Hi gh Y ield 974 -240 1394 923 -112 -577 1573 214 EMD (US D)508 -537 1503 -32 -120 3 880 259 0 250 500 750 1000 1250 1500 1750 2000 Option-Adjusted Spread (OAS)U.S.Corpor at e High Y ie ld - OAS U.S.HY 10 -Year Median U.S.IG Credit - OAS U.S.IG Credit 10-Year Median Yields Stable as the FOMC Hikes and Washington Disappoints §Short term Treasury yields rose in the quarter as the Federal Reserve raised the Fed Fund’s rate 25 bps in March,but left future hike projections unchanged,signaling a more dovish tone than expected.Committee members are currently predicting two more hikes in 2017,and it’s likely that market’s future focus will shift to the normalization of the Fed’s balance sheet.Treasury yields remained range bound on the quarter,and all major fixed income sectors posted positive absolute returns to start the year. §Treasuries returned +0.7%for the quarter.Economic growth has accelerated,which should push interest rates higher across the curve,but domestic and foreign investors’insatiable demand for longer-dated Treasuries resulted in a flatter curve over the quarter.The yield curve spread between 2 year and 30 year Treasuries fell 13 bps to 175 bps,while the spread between 10 year and 30 year Treasuries narrowed 1bp to 62 bps. §Investment grade credit returned +1.3%for the quarter and outpaced Treasuries by 47 bps on a duration-adjusted basis.The OAS of the U.S.Credit Index ended the quarter 6 bps tighter at 112 bps.Despite the Fed interest rate hike,Brexit,lower oil prices and the Administration’s failed initiative on new healthcare legislation,issuance hit an all-time record of $391B for the first quarter.Corporate high yield returned +2.7%on the quarter,benefitting from strong demand and rising equity markets. §Agency MBS generated a +0.5%absolute return,but trailed duration-matched Treasuries by 17 bps for the quarter.The OAS of the Mortgage Index ended the quarter 12 bps wider at 27 bps spurred by the Fed’s discussion of the ultimate end of reinvestment in Agency MBS.Lower prepayment speeds and duration drift linked to MBS’negative convexity reduced returns as coupon income and tight spreads weren’t enough to compensate investors for higher interest rate risk. U.S. Treasury Yield Curve Change Source: US Dept. of The Treasury 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 0 5 10 15 20 25 30Yield to MaturityMaturity (Years) 3/31/2016 12/30/2016 3/31/2017 7 Capital Markets Review Alternative Investments Global Alternatives Perform Despite Weaker Dollar §Hedge Funds:Hedge fund strategies were generally benefitted from global risk-on sentiment during the quarter.Stock selection was positive across long/short equity strategies,and even market-neutral managers posted sizable gains.Managers with a growth versus a value bias tended -2% 0% 2% 4% 6% 8% 10% 12% 30-Dec-16 30-Jan-17 28-Feb-17 31-Mar-17Cumulative ReturnHF Longs HF Shorts S&P Long -Shorts Commonly-held hedge fund long positions outperformed the S&P 500, while short positions underperformed the S&P 500. This led to positive alpha across US-focused long/short equity managers. Top Hedge Fund Equity Longs vs Shorts (Goldman VIP) Source: Bloomberg -3% -2% -1% 0% 1% 2% 3% 4% 5% 6% 7% -60% -40% -20% 0% 20% 40% 60% '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Infrastructure vs. Inflation Global Infrastructure (% YoY, 4m lead) Headline inflation (%YoY) market-neutral managers posted sizable gains.Managers with a growth versus a value bias tended to outperform,as did those with long exposures to outperforming sectors such as technology and healthcare.Managers with exposure to the energy sector underperformed.Many distressed credit strategies that did well in 2016 due to their exposures to volatile energy names generally lagged other credit funds during the quarter.A robust merger and financing environment continues to be a boon to event-driven strategies. §While many hedge funds invest globally,most are hedged foreign currency and did not benefit from the falling dollar in the same way as global stocks and bonds.The weaker dollar and declining interest rate volatility environment hurt macro strategies. §Real Assets:Global economic activity and inflation data continued their upswing into the first quarter.During periods of rising inflation,real assets are expected to perform well,due to a positive correlation to inflation.In particular,revenues earned by infrastructure assets often are linked to inflation which provides investors with increased income during inflationary periods. During the quarter,infrastructure surged +7.2%,and outperformed other inflation-sensitive assets such as commodities (-2.3%),real estate (+2.6%),and TIPS (+1.1%). §Private Capital Markets:Private equity fundraising 2016 momentum carried into the first quarter of 2017,as total fundraising ($156B)approached the historic 1Q 2008 figure of $170B. Transaction volume,however,continued its slide with deal counts falling -55%YoY.Deal counts saw a decline for a fifth consecutive quarter,though M&A multiples remain elevated,with the median EV/EBITDA multiple edging up to 10.2x in 1Q 2017.The pace of venture investment weakened again,although overall deal value was up incrementally due to several large deals.As venture capital-backed companies continue to remain private longer and first-time fund raises decrease,this value/volume dynamic is be expected to persist.In the first quarter,over $16.5B was deployed into more than 1,800 companies,equating to YoY declines of -12%and -24%, respectively. HF Longs HF Shorts S&P Long -Shorts 6.1% 6.8% 3.2% 0.8% 1.8% 2.7%2.5% 1.4% 4.4% 1.7% 0.5% 0% 5% 10%L/S equity managers mostly kept pace with their beta to global equity markets. Global equity markets, however, were boosted by a falling dollar, while hedge fund managers are generally FX-hedged Lower-quality and hedged strategies outperformed domestic bonds. Global stocks/bonds performed well mo stly due to FX, while FX-neutral hedge funds and long-dollar macro funds lagged. *Asset-weighted is used instead of fund-weighted, as it is available and more indicative of the universe. Sources: Bloomberg, Goldman Sachs Hedge Funds vs Long-Only: Total Returns 2017 Q1 Sources: Hedge Fund Research, Factset 8 Quarter Year To Date 1 Year 2 Years 3 Years 5 Years 7 Years 10 Years Domestic Equity Indices Dow Jones Wilshire 5000 5.6 5.6 18.3 8.9 10.0 13.2 12.9 7.6 S&P 500 6.1 6.1 17.2 9.2 10.4 13.3 12.9 7.5 Russell 1000 Index 6.0 6.0 17.4 8.6 10.0 13.3 13.0 7.6 Russell 1000 Growth Index 8.9 8.9 15.8 8.9 11.3 13.3 13.7 9.1 Russell 1000 Value Index 3.3 3.3 19.2 8.3 8.7 13.1 12.2 5.9 Russell Midcap Index 5.1 5.1 17.0 6.0 8.5 13.1 13.2 7.9 Russell Midcap Growth Index 6.9 6.9 14.1 4.2 7.9 12.0 12.8 8.1 Russell Midcap Value Index 3.8 3.8 19.8 7.6 8.9 14.1 13.4 7.5 Russell 2000 Index 2.5 2.5 26.2 6.7 7.2 12.4 12.3 7.1 Russell 2000 Growth Index 5.3 5.3 23.0 4.1 6.7 12.1 12.9 8.1 Russell 2000 Value Index -0.1 -0.1 29.4 9.3 7.6 12.5 11.6 6.1 International Equity Indices MSCI EAFE 7.2 7.2 11.7 1.2 0.5 5.8 4.7 1.1 MSCI EAFE Growth Index 8.5 8.5 7.4 1.7 1.5 6.0 5.5 2.0 MSCI EAFE Value Index 6.0 6.0 16.0 0.6 -0.6 5.6 3.9 0.0 MSCI EAFE Small Cap 8.0 8.0 11.0 7.0 3.6 9.2 8.3 3.0 MSCI AC World Index 6.9 6.9 15.0 4.9 5.1 8.4 7.8 4.0 MSCI AC World ex US 7.9 7.9 13.1 1.4 0.6 4.4 3.8 1.4 MSCI Emerging Markets Index 11.4 11.4 17.2 1.5 1.2 0.8 1.7 2.7 Fixed Income Indices Blmbg. Barc. U.S. Aggregate 0.8 0.8 0.4 1.2 2.7 2.3 3.5 4.3 Blmbg. Barc. Intermed. U.S. Government/Credit 0.8 0.8 0.4 1.2 2.0 1.9 2.9 3.8 Blmbg. Barc. U.S. Long Government/Credit 1.6 1.6 1.0 0.7 5.5 4.8 7.4 6.9 Blmbg. Barc. U.S. Corp: High Yield 2.7 2.7 16.4 5.9 4.6 6.8 7.8 7.5 BofA Merrill Lynch 3 Month U.S. T-Bill 0.1 0.1 0.4 0.2 0.2 0.1 0.1 0.7 Blmbg. Barc. U.S. TIPS 1.3 1.3 1.5 1.5 2.0 1.0 3.5 4.2 Citigroup Non-U.S. World Government Bond 2.0 2.0 -4.8 1.3 -2.6 -1.5 0.6 2.6 JPM EMBI Global Diversified (external currency)3.9 3.9 8.9 6.5 6.2 5.8 6.9 7.0 JPM GBI-EM Global Diversified (local currency)6.5 6.5 5.5 1.8 -2.7 -1.6 1.1 4.1 Real Asset Indices Bloomberg Commodity Index Total Return -2.3 -2.3 8.7 -6.5 -13.9 -9.5 -5.9 -6.2 Dow Jones Wilshire REIT 0.0 0.0 2.0 3.4 10.2 9.8 12.3 4.4 Capital Markets Review Index Returns As of March 31, 2017 (Percentage Return) _________________________ Returns for periods greater than one year are annualized. 9 Executive Summary 10 Performance Summary - March 2017 First quarter equity and fixed income index returns were positive. Active domestic equity, international equity, and fixed income funds performed in-line or outpaced their respective benchmarks during the quarter. Within the target date retirement funds, most options ranked above median in their target date manager universe, with the exception of Target Retirement Income, Target Retirement 2010, and Target Retirement 2020. Plan Assets The investment menu provides a combination of single strategy funds and diversified portfolios including a balanced fund and target retirement date funds. The retirement dates range from 2010 through 2060 in five year increments. Manager Evaluation Vanguard is a market leader and well known for its low cost market index and institutional investment funds. First quarter performance for active managers in the investment menu proved to be accretive. Vanguard International Growth and Vanguard Windsor II beat their benchmarks by 470 basis points and 150 basis points, respectively, while Vanguard US Growth performed in-line with its benchmark. Target retirement date funds approximated their respective benchmarks over longer-term periods. Ranks are well above median in their target date fund universes. Deferred Compensation Plan Executive Summary 11 Deferred Compensation Plan Executive Summary Capital Markets Review The S&P 500 Index returned +6.1% during the first quarter. Growth-oriented sectors led returns with Information Technology the strongest performing sector during the quarter, followed by Consumer Discretionary and Healthcare. Energy and Telecom were the only sectors to post a loss during the first quarter, marking a reversal from last year in which these were the two strongest performing sectors. Short term Treasury yields rose in the quarter, as the FOMC raised the Fed Fund’s rate 25 bps in March, but left future hike projections unchanged, signaling a more dovish tone than expected. Committee members currently are predicting two more hikes in 2017, and it’s likely that the market’s future focus will shift to the normalization of the Fed’s balance sheet. Treasury yields remained range bound on the quarter, and all major fixed income sectors posted positive absolute returns to start the year. Treasuries returned +0.7% for the quarter. Economic growth has accelerated, which should push interest rates higher across the curve, but domestic and foreign investors’ insatiable demand for longer-dated Treasuries resulted in a flatter curve over the quarter. The yield curve spread between two-year and 30-year Treasuries fell 13 bps to 175 bps. Most developed market equity indices provided similar returns in the 6% to 8% range during the quarter. Emerging Market equities bounced back significantly from the fourth quarter, returning 11.4%, led by India and South Korea. Currency gains contributed to U.S. dollar investor returns for both EAFE and emerging equity markets, as the U.S. dollar depreciated about 2.5% and 3.5%, respectively, against the EAFE and Emerging Market baskets of currencies. In yet another reversal from 2016, growth outperformed value in the first quarter. While U.S. large-cap stocks outperformed small-cap stocks across styles, within the value space mid-cap stocks were the top performers. Recommendations or Action Items No recommendations at this time. 12 Performance Summary 13 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Domestic Equity Options Vanguard 500 Index (VFINX)6.0 (47)6.0 (47)17.0 (39)10.2 (15)13.1 (16)7.4 (35) S&P 500 6.1 (47)6.1 (47)17.2 (37)10.4 (13)13.3 (12)7.5 (33) IM U.S. Large Cap Equity 5.9 5.9 16.0 8.4 11.8 6.8 Vanguard US Growth (VWUSX)8.9 (57)8.9 (57)12.0 (84)9.6 (42)12.5 (32)7.9 (54) Russell 1000 Growth Index 8.9 (58)8.9 (58)15.8 (32)11.3 (11)13.3 (15)9.1 (16) IM U.S. Large Cap Growth Equity 9.3 9.3 14.6 9.3 11.6 8.1 Vanguard Windsor II (VWNFX)4.8 (11)4.8 (11)18.6 (45)7.5 (44)11.7 (53)6.0 (33) Russell 1000 Value Index 3.3 (67)3.3 (67)19.2 (36)8.7 (14)13.1 (10)5.9 (34) IM U.S. Large Cap Value Equity 3.6 3.6 18.4 7.3 11.7 5.3 Vanguard Mid-Cap Index (VIMSX)6.2 (40)6.2 (40)16.6 (53)8.5 (19)12.7 (24)7.7 (29) Vanguard Mid-Cap Index Fund Blended Benchmark 6.2 (39)6.2 (39)16.8 (50)8.7 (16)13.0 (20)7.9 (24) IM U.S. Mid Cap Equity 5.2 5.2 16.8 6.6 11.2 6.9 Vanguard Small-Cap Index (NAESX)3.7 (16)3.7 (16)21.4 (72)7.3 (39)12.7 (28)8.1 (17) Vanguard Small-Cap Index Fund Blended Benchmark 3.7 (16)3.7 (16)21.5 (72)7.4 (37)12.9 (26)8.1 (16) IM U.S. Small Cap Equity 0.7 0.7 23.4 6.3 11.7 6.3 International Equity Option Vanguard International Growth (VWIGX)12.6 (15)12.6 (15)17.0 (22)2.7 (22)6.8 (18)3.4 (20) MSCI AC World ex USA (Net)7.9 (65)7.9 (65)13.1 (43)0.6 (55)4.4 (59)1.4 (54) IM International Equity 8.7 8.7 12.1 0.8 4.9 1.5 Fixed Income Options Vanguard Total Bond Market Index (VBMFX)0.9 (94)0.9 (94)0.3 (100)2.5 (60)2.2 (93)4.1 (82) Vanguard Total Bond Market Index Fund Benchmark 0.8 (95)0.8 (95)0.5 (99)2.7 (53)2.4 (86)4.3 (78) IM U.S. Broad Market Core+ Fixed Income 1.3 1.3 2.9 2.7 3.0 4.9 Vanguard Retirement Savings Trust 0.4 0.4 1.8 1.9 1.9 2.7 Ryan 3 Yr GIC Master 0.4 0.4 1.4 1.2 1.2 2.5 Performance Summary Investment Options As of March 31, 2017 _________________________ Returns are expressed as percentages. Returns for periods greater than one year are annualized. Peer group percentile ranks are shown in parenthesis. 14 Performance Summary Investment Options As of March 31, 2017 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Equity/Fixed Income Blend Options Vanguard Balanced Index (VBINX)3.8 (76)3.8 (76)10.6 (61)6.8 (10)8.7 (23)6.5 (11) Vanguard Balanced Index Fund Benchmark 3.8 (76)3.8 (76)10.8 (57)7.0 (8)8.9 (18)6.7 (9) IM Mixed-Asset Target Alloc Growth 4.5 4.5 11.3 4.9 7.7 5.0 Vanguard Target Retirement Income (VTINX)2.5 (66)2.5 (66)5.4 (74)3.8 (15)4.6 (25)5.0 (11) Vanguard Target Income Composite Index (Net)2.4 (69)2.4 (69)5.5 (70)4.0 (10)4.8 (21)5.0 (9) IM Mixed-Asset Target Today 2.7 2.7 6.1 3.0 4.0 3.8 Vanguard Target Retirement 2010 (VTENX)2.5 (90)2.5 (90)5.5 (94)3.9 (36)5.3 (56)4.7 (12) Vanguard Target 2010 Composite Index (Net)2.5 (92)2.5 (92)5.7 (93)4.1 (25)5.5 (45)4.7 (9) IM Mixed-Asset Target 2010 (MF) Median 3.1 3.1 7.4 3.7 5.3 3.8 Vanguard Target Retirement 2015 (VTXVX)3.4 (53)3.4 (53)7.7 (66)4.6 (22)6.5 (29)5.0 (9) Vanguard Target 2015 Composite Index (Net)3.3 (59)3.3 (59)7.9 (61)4.8 (9)6.7 (17)5.1 (5) IM Mixed-Asset Target 2015 (MF) Median 3.4 3.4 8.1 3.9 6.0 4.4 Vanguard Target Retirement 2020 (VTWNX)4.1 (22)4.1 (22)9.4 (28)5.2 (4)7.3 (7)5.2 (4) Vanguard Target 2020 Composite Index (Net)4.0 (28)4.0 (28)9.6 (26)5.4 (1)7.6 (4)5.4 (1) IM Mixed-Asset Target 2020 (MF) Median 3.8 3.8 8.9 3.7 5.9 3.9 Vanguard Target Retirement 2025 (VTTVX)4.6 (31)4.6 (31)10.7 (34)5.5 (6)7.9 (17)5.3 (15) Vanguard Target 2025 Composite Index (Net)4.5 (37)4.5 (37)10.8 (31)5.7 (2)8.2 (8)5.4 (11) IM Mixed-Asset Target 2025 (MF) Median 4.3 4.3 10.1 4.3 6.8 4.6 Vanguard Target Retirement 2030 (VTHRX)5.1 (31)5.1 (31)11.9 (39)5.7 (9)8.5 (13)5.3 (14) Vanguard Target 2030 Composite Index (Net)5.0 (40)5.0 (40)12.0 (37)5.9 (6)8.7 (7)5.5 (9) IM Mixed-Asset Target 2030 (MF) Median 4.8 4.8 11.6 4.6 7.3 4.2 Vanguard Target Retirement 2035 (VTTHX)5.5 (40)5.5 (40)13.0 (41)6.0 (13)9.1 (15)5.5 (18) Vanguard Target 2035 Composite Index (Net)5.4 (45)5.4 (45)13.2 (34)6.2 (8)9.3 (7)5.6 (15) IM Mixed-Asset Target 2035 (MF) Median 5.3 5.3 12.8 5.1 7.9 4.9 Vanguard Target Retirement 2040 (VFORX)6.0 (28)6.0 (28)14.3 (26)6.1 (12)9.4 (10)5.7 (12) Vanguard Target 2040 Composite Index (Net)5.9 (35)5.9 (35)14.4 (21)6.4 (7)9.7 (5)5.8 (10) IM Mixed-Asset Target 2040 (MF) Median 5.6 5.6 13.6 5.2 8.2 4.4 _________________________ Returns are expressed as percentages. Returns for periods greater than one year are annualized. Peer group percentile ranks are shown in parenthesis. 15 Performance Summary Investment Options As of March 31, 2017 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Equity/Fixed Income Blend Options (cont.) Vanguard Target Retirement 2045 (VTIVX)6.2 (32)6.2 (32)14.7 (31)6.2 (14)9.5 (16)5.7 (22) Vanguard Target 2045 Composite Index (Net)6.0 (41)6.0 (41)14.8 (29)6.5 (8)9.8 (7)5.9 (16) IM Mixed-Asset Target 2045 (MF) Median 5.9 5.9 14.1 5.5 8.6 4.8 Vanguard Target Retirement 2050 (VFIFX)6.2 (34)6.2 (34)14.7 (36)6.2 (14)9.5 (14)5.7 (19) Vanguard Target 2050 Composite Index (Net)6.0 (42)6.0 (42)14.8 (35)6.5 (8)9.8 (7)5.9 (16) IM Mixed-Asset Target 2050 (MF) Median 5.9 5.9 14.2 5.5 8.6 4.4 Vanguard Target Retirement 2055 (VFFVX)6.2 (43)6.2 (43)14.7 (40)6.2 (19)9.5 (26)N/A Vanguard Target 2055 Composite Index (Net)6.0 (52)6.0 (52)14.8 (39)6.5 (10)9.8 (13)N/A IM Mixed-Asset Target 2055+ (MF) Median 6.1 6.1 14.4 5.6 8.9 N/A Vanguard Target Retirement 2060 (VTTSX)6.2 (43)6.2 (43)14.7 (42)6.2 (20)9.5 (20)N/A Vanguard Target 2060 Composite Index (Net)6.0 (52)6.0 (52)14.8 (39)6.5 (10)9.8 (13)N/A IM Mixed-Asset Target 2055+ (MF) Median 6.1 6.1 14.4 5.6 8.9 N/A Money Market Option Vanguard Prime Money Market (VMMXX)0.2 0.2 0.6 0.2 0.2 0.8 BofA Merrill Lynch 3 Month U.S. T-Bill 0.1 0.1 0.4 0.2 0.1 0.7 _________________________ Returns are expressed as percentages. Returns for periods greater than one year are annualized. Peer group percentile ranks are shown in parenthesis. 16 Pe rformance Summary Manager Compliance Checklist As of March 31, 2017 Mana gers Va ngua rd S&P 500 Index (V FI NX ) Vangua rd US Grow th (V WUSX) Vangua rd Windsor I I (V WNFX) Vangua rd Mid-Ca p Inde x (V IMSX) Vangua rd Small-Ca p Inde x (NAES X) Vangua rd Interna ti ona l Grow th (V WIGX) Vangua rd Total Bond Ma rke t I nde x (V BM FX ) Vangua rd Re ti re ment Trust Org ani zati onal /Produ ct Is sues No ma teria l c hanges to investment team ++++++++ No ma teria l o rg aniza tional changes ++++++++ Accounting or regulatory concerns ++++++++ Cu rre ntly in adherence to guidelin es ++++++++ Po rt fo lio characteris tics me et s tylis tic expectations ++++++++ Re lati ve Perfor mance 1 Three-year return better than benchmark N/A --N/A N/A +N/A + Three-year rankin g better than peer group median ++++++-N/A Five year re turn better than benchmark N/A --N/A N/A +N/A + 1 Manager performance is evaluated net of investment management fees. --+ Five year ra nkin g better than peer group median ++In-Lin e +++-N/A Perfor mance s tatus ++++++++ Summary status ++++++++ 17 Pe rformance Summary Manager Compliance Checklist (Continued) As of March 31, 2017 Mana gers Vangua rd Ba lance d Inde x (V BI NX) Va ngua rd Ta rge t Re ti re ment Income Fund (V TINX) Va ngua rd Ta rge t Re ti re me nt 2010 (V TENX ) Vangua rd Ta rge t Re ti re ment 2015 (V TXVX) Va ngua rd Ta rge t Re tire ment 2020 (V TW NX) Va ngua rd Ta rge t Re ti re ment 2025 (V TTVX) Va ngua rd Ta rge t Re ti re me nt 2030 (V THRX ) Vangua rd Ta rge t Re ti re ment 2035 (V TTHX) Org ani zati onal /Produ ct Is sues No ma teria l c hanges to investment team ++++++++ No ma teria l o rg aniza tional changes ++++++++ Accounting or regulatory concerns ++++++++ Cu rre ntly in adherence to guidelin es ++++++++ Po rt fo lio characteris tics me et s tylis tic expectations ++++++++ Re lati ve Perfor mance 1 Three-year return better than benchmark N/A N/A N/A N/A N/A N/A N/A N/A Three-year rankin g better than peer group median ++++++++ Five year re turn better than benchmark N/A N/A N/A N/A N/A N/A N/A N/A 1 Manager performance is evaluated net of investment management fees. Five year re turn better than benchmark N/A N/A N/A N/A N/A N/A N/A N/A Five year ra nkin g better than peer group median ++In-Lin e +++++ Perfor mance s tatus ++++++++ Summary status ++++++++ 18 Pe rformance Summary Manager Compliance Checklist (Continued) As of March 31, 2017 Mana gers Va ngua rd Ta rge t Re ti re ment 2040 (V FORX) Va ngua rd Ta rge t Re ti re ment 2045 (V TIVX) Va ngua rd Ta rge t Re ti re me nt 2050 (V FI FX) Vangua rd Ta rge t Re ti re ment 2055 (V FFV X) Vangua rd Ta rge t Re ti re me nt 2060 (V TTSX) Vangua rd Prime Money Ma rke t Fund (V MMXX) Org ani zati onal /Produ ct Is sues No ma teria l c hanges to inves tment team ++++++ No ma teria l o rg aniza tional changes ++++++ Accounting or regulatory concerns ++++++ Cu rre ntly in adherence to guidelin es ++++++ Po rt fo lio characteris tics me et s tylis tic expectations ++++++ Re lati ve Perfor ma nc e 1 Three-year return better than benchmark N/A N/A N/A N/A N/A N/A Three-year rankin g better than peer group median +++++N/A Five year re turn better than benchmark N/A N/A N/A N/A N/A N/A 1 Manager performance is evaluated net of investment management fees. Five year re turn better than benchmark N/A N/A N/A N/A N/A N/A Five year ra nkin g better than peer group median +++++N/A Perfor mance s tatus ++++++ Summar y s tatus ++++++ 19 Plan Assets 20 Plan Summary Deferred Compensation Plan Assets As of March 31, 2017 Investm ent Opti ons Investm ent S tyl e Al loca ti on Perce ntage Dome stic Eq uity Funds Van gu ard 500 Index I nv US Large C ap Equit y -Core $ 8,154,874 14.4%$ 640,579 + 8.5% Van gu ard Windsor II Inv US Large C ap Equit y -Valu e $ 9,078,272 16.0%$ 363,897 + 4.2% Van gu ard US Growth Inv US Large C ap Equit y -Growth $ 4,755,269 8.4%$ 384,342 + 8.8% Van gu ard M id Cap Index Inv US Mid Cap Equit y -Core $ 3,091,349 5.5%$ 3,371 + 0.1% Van gu ard Small C ap Index Inv US Small C ap Equit y -Core $ 2,593,156 4.6%$ 180,835 + 7.5% $ 27,672,920 48.8%$ 1,573,024 + 6.0% Internat ional Equ ity Funds Van gu ard Int ernational G rowth Int er nat ional Equit y $ 2,249,442 4.0%$ 261,740 + 13.2% $ 2,249,442 4.0%$ 261,740 + 13.2% Fi xe d I ncome/Alte rnative Fu nds Van gu ard T ot al Bond M arket Index I nv Market Duration $ 2,930,098 5.2%$ (562,150)- 16.1% Van gu ard Retirement Sav ings Trust Sh ort Duration $ 3,696,161 6.5%$ (51,451)- 1.4% Van gu ard Balanced Index Inv Balanced $ 4,839,235 8.5%$ 96,141 + 2.0% $ 11,465,494 20.2%$ (517,460)- 4.3% $ Ch ange From Previous Qtr % C ha nge From Previous Qtr $ 11,465,494 20.2%$ (517,460)- 4.3% Cas h Van gu ard Prime M oney Market Cash $ 1,672,185 2.9%$ (130,084)- 7.2% $ 1,672,185 2.9%$ (130,084)- 7.2% Ta rge t Date Funds Van gu ard T arge t Ret ir emen t Income Inv Blend $ 466,425 0.8%$ 30,694 + 7.0% Van gu ard T arge t Ret ir emen t 2010 Inv Blend $ 332,741 0.6%$ (220,738)- 39.9% Van gu ard T arge t Ret ir emen t 2015 Inv Blend $ 729,770 1.3%$ (9,063)- 1.2% Van gu ard T arge t Ret ir emen t 2020 Inv Blend $ 2,435,242 4.3%$ 93,589 + 4.0% Van gu ard T arge t Ret ir emen t 2025 Inv Blend $ 3,149,932 5.6%$ 690,620 + 28.1% Van gu ard T arge t Ret ir emen t 2030 Inv Blend $ 1,328,924 2.3%$ 101,955 + 8.3% Van gu ard T arge t Ret ir emen t 2035 Inv Blend $ 1,542,160 2.7%$ 68,272 + 4.6% Van gu ard T arge t Ret ir emen t 2040 Inv Blend $ 879,370 1.6%$ 87,441 + 11.0% Van gu ard T arge t Ret ir emen t 2045 Inv Blend $ 933,744 1.6%$ 39,408 + 4.4% Van gu ard T arge t Ret ir emen t 2050 Inv Blend $ 527,202 0.9%$ 86,912 + 19.7% Van gu ard T arge t Ret ir emen t 2055 Inv Blend $ 95,162 0.2%$ 14,276 + 17.7% Van gu ard T arge t Ret ir emen t 2060 Inv Blend $ 51,147 0.1%$ (2,563)- 4.8% 12,471,820$ 22.0%980,804$ + 8.5% Lo an Fund Loan F und Loan Fund $ 1,166,174 2.1%$ 46,416 + 4.1% TO TA L $ 56,698,036 100.0%$ 2,214,440 + 4.1% 21 Plan Summary Fee Comparison Summary As of March 31, 2017 Inv estment Option Expe nse Ratio Morningstar Cate gory Av erage Fe e Level Comparison Group M edian eVestment Al liance Univ erse Median Cate gory Fe e Level Comp ar ison Group eVestment Alliance Univ erse Va nguard 500 In dex 0.14 0.73 0.90 0.15 La rg e Ble nd La rg e Cap No Load US Passive Large Cap Equity (MF) Va nguard US Growt h 0.46 1.08 0.90 0.79 La rg e Growt h La rg e Cap No Load US Large Cap Gro wt h Va nguard Windsor 0.33 1.13 0.90 0.76 La rg e Value La rg e Cap No Load US Large Cap Value Va nguard Mid-Cap Index 0.18 0.84 1.04 0.18 Mid Ble nd Mid Cap No Load US Pa ssive Mid Cap Equity Va nguard Sma ll-Cap Index 0.18 1.12 1.20 0.18 Small Ble nd Small Ca p No Load US Pa ssive Sma ll Ca p Equity Va nguard International Gr owth 0.46 1.27 1.03 1.05 Fo reig n Large Growt h Fo re ig n Large Cap No Load ACWI ex-US Gro wt h Equity Va nguard Total Bo nd Marke t Index 0.15 0.67 0.65 0.48 In terme diate-Term Bond In terme diate-Term Bo nd No Load US Co re Fixe d Income Va nguard Retireme nt Saving Tru st 0.53 N/A N/A 0.30 N/A N/A US Stable Value Fixed Income Va nguard Balanced Index 0.19 0.66 0.91 0.77 Moderate Allo cation Moderate Allo cation No Load US Ba la nced Va nguard Target Retireme nt Income1 0.13 0.78 0.68 0.38 Re tire me nt Income Re tire me nt Income No Load Life cycle/Target Date Income Va nguard Target Retireme nt 20101 0.13 0.80 0.58 0.41 Target Date 2000-2010 Target Retireme nt 2000-2010 No Lo ad Life cycle/Target Date 2010 Va nguard Target Retireme nt 2015 0.14 0.66 0.75 0.48 Target Date 2011-2015 Target Retireme nt 2011-2015 No Lo ad Life cycle/Target Date 2015 Va nguard Target Retireme nt 2020 0.14 0.83 0.75 0.44 Target Date 2016-2020 Target Retireme nt 2016-2020 No Lo ad Life cycle/Target Date 2020 Va nguard Target Retireme nt 20251 0.14 0.68 0.75 0.47 Target Date 2021-2025 Target Retireme nt 2021-2025 No Lo ad Life cycle/Target Date 2025 Va nguard Target Retireme nt 2030 0.15 0.84 0.77 0.46 Target Date 2026-2030 Target Retireme nt 2026-2030 No Lo ad Life cycle/Target Date 2030 1 Effective 1/27/17, Vanguard has reduced fees by 1 bps . Fees are updated to reflect this change. Va nguard Target Retireme nt 2030 0.15 0.84 0.77 0.46 Target Date 2026-2030 Target Retireme nt 2026-2030 No Lo ad Life cycle/Target Date 2030 Va nguard Target Retireme nt 2035 0.15 0.70 0.80 0.47 Target Date 2031-2035 Target Retireme nt 3031-2035 No Lo ad Life cycle/Target Date 2035 Va nguard Target Retireme nt 2040 0.16 0.85 0.79 0.48 Target Date 2036-2040 Target Retireme nt 2036-2040 No Lo ad Life cycle/Target Date 2040 Va nguard Target Retireme nt 2045 0.16 0.70 0.78 0.48 Target Date 2041-2045 Target Retireme nt 2041-2045 No Lo ad Life cycle/Target Date 2045 Va nguard Target Retireme nt 2050 0.16 0.85 0.79 0.48 Target Date 2046-2050 Target Retireme nt 2046-2050 No Lo ad Life cycle/Target Date 2050 Va nguard Target Retireme nt 2055 0.16 0.70 0.76 0.45 Target Date 2051+Targ et Retireme nt 2051+ No Lo ad Life cycle/Target Date 2055 Va nguard Target Retireme nt 2060 0.16 0.85 0.76 0.38 Target Date 2051+Targ et Retireme nt 2051+ No Lo ad Life cycle/Target Date 2060 Va nguard Prime Money Marke t 0.16 0.36 N/A 0.19 Money Market Taxable N/A US Cas h Management Pavilio n Consulting Fee ($26,010 p er year) 22 Manager Evaluation 23 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard 500 Index Fund (VFINX)6.0 6.0 17.0 10.2 13.1 7.4 11.8 1.2 13.5 32.2 15.8 2.0 14.9 26.5 -37.0 5.4 S&P 500 6.1 6.1 17.2 10.4 13.3 7.5 12.0 1.4 13.7 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 IM U.S. Large Cap Equity 5.9 5.9 16.0 8.4 11.8 6.8 9.3 0.3 10.9 32.5 15.3 -1.4 13.4 28.2 -37.9 7.0 Vanguard 500 Index Fund (VFINX) Rank 47 47 39 15 16 35 32 43 15 56 44 19 35 59 40 60 Vanguard 500 Index Fund (VFINX)S&P 500 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.1 0.2 -0.1 -0.2 -0.3Return (%)6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard 500 Index Fund (VFINX)13.1 10.1 12.8 -0.1 1.0 1.3 0.0 -10.2 5.6 1.7 40y 7m S&P 500 13.3 10.1 13.0 0.0 1.0 1.3 0.0 N/A 5.6 0.0 40y 7m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 10.1 -1.3 0.0 31.7 40y 7m Manager Evaluation Vanguard 500 Index Fund (VFINX) vs. S&P 500 As of March 31, 2017 24 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)161,867 161,881 Median Mkt. Cap ($M)19,953 20,024 Price/Earnings ratio 21.3 21.3 Price/Book ratio 3.3 3.3 5 Yr. EPS Growth Rate (%)11.4 11.4 Current Yield (%)2.0 2.0 Debt to Equity 1.0 1.0 Number of Stocks 511 505 Beta (5 Years, Monthly)1.00 1.00 Consistency (5 Years, Monthly)1.67 1.00 Sharpe Ratio (5 Years, Monthly)1.27 1.28 Information Ratio (5 Years, Monthly)-10.18 - Up Market Capture (5 Years, Monthly)99.50 - Down Market Capture (5 Years, Monthly)100.47 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Apple Inc 3.7 3.7 0.0 24.6 Microsoft Corp 2.5 2.5 0.0 6.6 Amazon.com Inc 1.7 1.7 0.0 18.2 Exxon Mobil Corp 1.7 1.7 0.0 -8.3 Johnson & Johnson 1.7 1.7 0.0 8.8 Facebook Inc 1.6 1.6 0.0 23.5 JPMorgan Chase & Co 1.5 1.5 0.0 2.4 Berkshire Hathaway Inc 1.5 1.6 -0.1 2.3 AT&T Inc 1.3 1.3 0.0 -1.1 General Electric Co 1.3 1.3 0.0 -4.9 % of Portfolio 18.5 18.6 Distribution of Market Capitalization (%) Vanguard 500 Index Fund (VFINX)S&P 500 0.0 20.0 40.0 60.0 80.0 >$75 Bil $20 Bil - $75 Bil $5 Bil - $20 Bil $0 - $5 Bil 54.2 32.0 13.4 0.3 54.2 32.0 13.5 0.3 Sector Weights (%) Vanguard 500 Index Fund (VFINX)S&P 500 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 3.2 2.4 2.9 2.8 22.1 10.1 13.9 14.4 6.6 9.3 12.3 3.2 2.4 2.9 2.8 22.1 10.1 13.9 14.4 6.6 9.3 12.3 Manager Evaluation Vanguard 500 Index Fund (VFINX) vs. S&P 500 As of March 31, 2017 25 Historical Performance Buy and Hold Attribution Risk and Return (Apr - 2012 - Mar - 2017)Three Year Rolling Percentile Ranking Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Windsor II (VWNFX)4.8 4.8 18.6 7.5 11.7 6.0 13.4 -3.2 11.2 30.7 16.7 2.7 10.6 27.1 -36.7 2.2 Russell 1000 Value Index 3.3 3.3 19.2 8.7 13.1 5.9 17.3 -3.8 13.5 32.5 17.5 0.4 15.5 19.7 -36.8 -0.2 IM U.S. Large Cap Value Equity 3.6 3.6 18.4 7.3 11.7 5.3 14.0 -3.8 10.8 32.4 15.6 -2.6 12.8 24.0 -37.0 1.7 Vanguard Windsor II (VWNFX) Rank 11 11 45 44 53 33 62 37 40 79 33 11 83 28 48 45 Vanguard Windsor II (VWNFX)Russell 1000 Value Index 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 8.0 10.0 12.0 14.0 16.0 Return (%)7.4 7.6 7.8 8.0 8.2 8.4 8.6 8.8 9.0 Risk (Standard Deviation %) Russell 1000 Value Index Vanguard Windsor II (VWNFX) Average Active Weight 0.0 8.0 16.0-8.0-16.0 Utilities Telecommunication Services Real Estate Other Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary Cash -5.0 -1.0 -4.5 0.6 -1.0 3.6 0.0 8.3 -2.3 -2.9 -0.4 2.7 2.0 Allocation (Total: 0.9) 0.0 0.4 0.8-0.4-0.8 -0.2 0.1 0.1 0.0 0.0 0.2 0.0 0.5 0.0 0.3 0.0 0.0 -0.1 Stock (Total: 0.1) 0.0 0.4 0.8-0.4-0.8 0.1 0.0 0.0 0.0 -0.2 -0.1 0.3 -0.3 0.1 0.1 0.2 0.1 0.0 Vanguard Windsor II (VWNFX) 0.0 0.3 0.6-0.3-0.6 -0.1 0.0 0.1 0.0 -0.2 0.1 0.3 0.2 0.1 0.3 0.1 0.1 -0.1 Manager Evaluation Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index As of March 31, 2017 Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading. 26 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)136,882 122,166 Median Mkt. Cap ($M)26,239 8,699 Price/Earnings ratio 18.6 19.0 Price/Book ratio 2.7 2.2 5 Yr. EPS Growth Rate (%)10.4 10.2 Current Yield (%)2.4 2.5 Debt to Equity 1.3 0.9 Number of Stocks 265 692 Beta (5 Years, Monthly)0.97 1.00 Consistency (5 Years, Monthly)41.67 1.00 Sharpe Ratio (5 Years, Monthly)1.11 1.23 Information Ratio (5 Years, Monthly)-0.66 - Up Market Capture (5 Years, Monthly)94.63 - Down Market Capture (5 Years, Monthly)101.52 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Microsoft Corp 3.3 0.0 3.3 6.6 Bank of America Corp 3.1 2.2 0.9 7.1 Pfizer Inc 2.7 1.7 1.0 6.4 Citigroup Inc 2.4 1.5 0.9 0.9 JPMorgan Chase & Co 2.4 2.8 -0.4 2.4 Medtronic PLC 2.4 1.0 1.4 13.7 Oracle Corp 2.3 1.1 1.2 16.5 Philip Morris International Inc 2.3 1.4 0.9 24.5 Wells Fargo & Co 2.3 2.3 0.0 1.7 Johnson Controls International Plc 2.1 0.3 1.8 2.9 % of Portfolio 25.3 14.3 Distribution of Market Capitalization (%) Vanguard Windsor II (VWNFX)Russell 1000 Value Index 0.0 20.0 40.0 60.0 80.0 >$75 Bil $20 Bil - $75 Bil $5 Bil - $20 Bil $0 - $5 Bil Cash 46.3 30.1 19.3 4.2 0.0 53.0 36.6 8.5 1.8 0.0 Sector Weights (%) Vanguard Windsor II (VWNFX)Russell 1000 Value Index 0.0 6.0 12.0 18.0 24.0 30.0 36.0 Other Cash Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.4 0.0 0.5 3.1 0.2 2.7 16.8 10.0 19.9 17.3 8.7 10.4 9.9 0.0 0.0 6.2 3.6 4.6 2.9 10.0 10.1 10.8 26.5 12.2 8.5 4.5 Manager Evaluation Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index As of March 31, 2017 27 Historical Performance Buy and Hold Attribution Risk and Return (Apr - 2012 - Mar - 2017)Three Year Rolling Percentile Ranking Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard US Growth (VWUSX)8.9 8.9 12.0 9.6 12.5 7.9 -0.7 8.5 13.1 35.5 18.4 -0.7 11.5 35.0 -37.8 10.1 Russell 1000 Growth Index 8.9 8.9 15.8 11.3 13.3 9.1 7.1 5.7 13.1 33.5 15.3 2.6 16.7 37.2 -38.4 11.8 IM U.S. Large Cap Growth Equity 9.3 9.3 14.6 9.3 11.6 8.1 2.0 5.6 10.5 33.9 14.8 -1.8 15.1 35.1 -39.8 13.7 Vanguard US Growth (VWUSX) Rank 57 57 84 42 32 54 76 19 21 35 18 36 80 52 30 77 Vanguard US Growth (VWUSX)Russell 1000 Growth Index 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 11.2 12.0 12.8 13.6 14.4 Return (%)7.5 8.0 8.5 9.0 9.5 10.0 10.5 11.0 11.5 Risk (Standard Deviation %) Russell 1000 Growth Index Vanguard US Growth (VWUSX) Average Active Weight 0.0 8.0 16.0-8.0-16.0 Utilities Telecommunication Services Real Estate Other Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary Cash 0.0 -1.0 0.9 0.0 -2.7 8.6 -2.7 0.3 3.6 -0.2 -4.8 -2.0 0.0 Allocation (Total: 0.8) 0.0 0.3 0.6-0.3-0.6 0.0 0.1 0.0 0.0 0.1 0.4 0.1 0.0 -0.1 0.0 0.2 0.0 0.0 Stock (Total: -0.4) 0.0 0.4 0.8-0.4-0.8 0.0 0.1 0.2 0.0 0.0 -0.3 0.0 0.0 0.1 0.0 0.0 -0.5 0.0 Vanguard US Growth (VWUSX) 0.0 0.3 0.6-0.3-0.6-0.9 0.0 0.2 0.1 0.0 0.1 0.1 0.1 0.0 0.0 0.1 0.2 -0.5 0.0 Manager Evaluation Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index As of March 31, 2017 Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading. 28 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)147,077 171,647 Median Mkt. Cap ($M)26,161 9,393 Price/Earnings ratio 27.9 23.9 Price/Book ratio 4.9 5.7 5 Yr. EPS Growth Rate (%)14.4 13.0 Current Yield (%)0.9 1.5 Debt to Equity 1.0 1.2 Number of Stocks 152 609 Beta (5 Years, Monthly)1.05 1.00 Consistency (5 Years, Monthly)56.67 1.00 Sharpe Ratio (5 Years, Monthly)1.07 1.23 Information Ratio (5 Years, Monthly)-0.20 - Up Market Capture (5 Years, Monthly)101.98 - Down Market Capture (5 Years, Monthly)112.07 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Facebook Inc 4.3 2.8 1.5 23.5 Microsoft Corp 4.1 4.4 -0.3 6.6 Google Inc (Class C)3.9 2.2 1.7 7.5 Mastercard Inc 3.4 1.0 2.4 9.2 Visa Inc 3.2 1.5 1.7 14.1 Amazon.com Inc 3.0 3.0 0.0 18.2 Apple Inc 2.8 6.3 -3.5 24.6 Celgene Corp 2.6 0.8 1.8 7.5 PayPal Holdings Inc 2.6 0.4 2.2 9.0 Alphabet Inc 2.3 2.2 0.1 7.0 % of Portfolio 32.2 24.6 Distribution of Market Capitalization (%) Vanguard US Growth (VWUSX)Russell 1000 Growth Index 0.0 15.0 30.0 45.0 60.0 >$75 Bil $20 Bil - $75 Bil $5 Bil - $20 Bil $0 - $5 Bil Cash 51.6 27.8 18.2 2.5 0.0 42.2 33.0 24.0 0.8 0.0 Sector Weights (%) Vanguard US Growth (VWUSX)Russell 1000 Growth Index 0.0 10.0 20.0 30.0 40.0 50.0 60.0 Other Cash Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.0 0.0 0.0 0.0 3.9 0.7 43.0 9.2 15.1 7.1 0.3 3.3 17.3 0.0 0.0 0.0 1.0 2.7 3.5 32.7 10.7 15.9 2.8 0.5 9.1 20.9 Manager Evaluation Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index As of March 31, 2017 29 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Mid-Cap Index Fund (VIMSX)6.2 6.2 16.6 8.5 12.7 7.7 11.1 -1.5 13.6 35.0 15.8 -2.1 25.5 40.2 -41.8 6.0 Vanguard Mid-Cap Index Fund Blended Benchmark 6.2 6.2 16.8 8.7 13.0 7.9 11.2 -1.3 13.8 35.4 16.0 -1.9 25.7 40.5 -41.8 6.2 IM U.S. Mid Cap Equity 5.2 5.2 16.8 6.6 11.2 6.9 11.7 -2.5 8.2 34.9 15.1 -4.0 23.7 36.6 -41.5 9.9 Vanguard Mid-Cap Index Fund (VIMSX) Rank 40 40 53 19 24 29 55 38 9 50 42 34 35 35 53 67 Vanguard Mid-Cap Index Fund (VIMSX) Vanguard Mid-Cap Index Fund Blended Benchmark 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.2 -0.2 -0.4Return (%)6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Mid-Cap Index Fund (VIMSX)12.7 11.1 12.5 -0.2 1.0 1.1 0.1 -3.4 6.4 13.3 18y 10m Vanguard Mid-Cap Index Fund Blended Benchmark 13.0 11.1 12.8 0.0 1.0 1.2 0.0 N/A 6.4 0.0 18y 10m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.1 -1.2 0.0 31.7 18y 10m Manager Evaluation Vanguard Mid-Cap Index Fund (VIMSX) vs. Vanguard Mid-Cap Index Fund Blended Benchmark As of March 31, 2017 Note: Prior to May 16, 2003, the Vanguard Mid-Cap Index was benchmarked to the S&P MidCap 400 Index. From May 16, 2003 to January 30, 2013, the Index fund was benchmarked to the MSCI US Mid Cap 450 Index. Starting on January 31, 2013, the benchmark transitioned to the CRSP US Mid Cap Index. 30 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)13,467 13,468 Median Mkt. Cap ($M)10,534 10,562 Price/Earnings ratio 23.1 23.1 Price/Book ratio 2.8 2.8 5 Yr. EPS Growth Rate (%)10.4 10.4 Current Yield (%)1.6 1.6 Debt to Equity 1.4 1.4 Number of Stocks 348 343 Beta (5 Years, Monthly)1.00 1.00 Consistency (5 Years, Monthly)20.00 1.00 Sharpe Ratio (5 Years, Monthly)1.13 1.16 Information Ratio (5 Years, Monthly)-1.07 - Up Market Capture (5 Years, Monthly)99.18 - Down Market Capture (5 Years, Monthly)100.89 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Equinix Inc 0.9 0.9 0.0 12.6 Electronic Arts Inc.0.8 0.8 0.0 13.7 Newell Brands Inc 0.7 0.7 0.0 6.1 Fiserv Inc.0.7 0.7 0.0 8.5 Western Digital Corp 0.7 0.7 0.0 22.2 Incyte Corp 0.6 0.6 0.0 33.3 Lam Research Corp 0.6 0.6 0.0 21.9 M&T Bank Corp 0.6 0.6 0.0 -0.6 Roper Technologies Inc 0.6 0.6 0.0 13.0 Amphenol Corp 0.6 0.6 0.0 6.1 % of Portfolio 6.8 6.8 Distribution of Market Capitalization (%) Vanguard Mid-Cap Index Fund (VIMSX) CRSP U.S. Mid Cap TR Index 0.0 50.0 100.0 150.0 $20 Bil - $75 Bil $5 Bil - $20 Bil $0 - $5 Bil 10.3 88.3 1.3 10.3 88.3 1.3 Sector Weights (%) Vanguard Mid-Cap Index Fund (VIMSX) CRSP U.S. Mid Cap TR Index 0.0 4.0 8.0 12.0 16.0 20.0 24.0 Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 5.0 0.8 7.7 6.2 17.8 12.7 9.2 14.2 4.8 5.2 16.6 5.0 0.8 7.7 6.2 17.8 12.7 9.2 14.1 4.8 5.2 16.6 Manager Evaluation Vanguard Mid-Cap Index Fund (VIMSX) vs. CRSP U.S. Mid Cap TR Index As of March 31, 2017 31 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Small-Cap Index Fund (NAESX)3.7 3.7 21.4 7.3 12.7 8.1 18.2 -3.8 7.4 37.6 18.0 -2.8 27.7 36.1 -36.1 1.2 Vanguard Small-Cap Index Fund Blended Benchmark 3.7 3.7 21.5 7.4 12.9 8.1 18.3 -3.7 7.5 37.8 18.2 -2.8 27.8 36.1 -36.2 1.2 IM U.S. Small Cap Equity 0.7 0.7 23.4 6.3 11.7 6.3 22.4 -5.6 3.3 38.0 13.8 -3.8 25.7 29.2 -38.7 -1.0 Vanguard Small-Cap Index Fund (NAESX) Rank 16 16 72 39 28 17 73 35 8 52 18 40 31 29 39 42 Vanguard Small-Cap Index Fund (NAESX) Vanguard Small-Cap Index Fund Blended Benchmark 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.1 0.2 -0.1 -0.2 -0.3Return (%)6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Small-Cap Index Fund (NAESX)12.7 12.7 12.7 -0.1 1.0 1.0 0.1 -2.4 7.5 20.0 49y 2m Vanguard Small-Cap Index Fund Blended Benchmark 12.9 12.7 12.9 0.0 1.0 1.0 0.0 N/A 7.5 0.0 49y 2m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 12.7 -1.0 0.0 35.0 49y 2m Manager Evaluation Vanguard Small-Cap Index Fund (NAESX) vs. Vanguard Small-Cap Index Fund Blended Benchmark As of March 31, 2017 Note: Prior to May 16, 2003, the Vanguard Small-Cap Index was benchmarked to the Russell 2000 Index. From May 16, 2003 to January 30, 2013, the Index fund was benchmarked to the MSCI US Small Cap 1750 Index. Starting on January 31, 2013, the benchmark transitioned to the CRSP US Small Cap Index. 32 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)4,047 4,046 Median Mkt. Cap ($M)2,113 2,131 Price/Earnings ratio 22.0 22.0 Price/Book ratio 2.6 2.6 5 Yr. EPS Growth Rate (%)12.5 12.5 Current Yield (%)1.5 1.5 Debt to Equity 1.1 1.1 Number of Stocks 1,430 1,413 Beta (5 Years, Monthly)1.00 1.00 Consistency (5 Years, Monthly)20.00 1.00 Sharpe Ratio (5 Years, Monthly)1.01 1.03 Information Ratio (5 Years, Monthly)-0.50 - Up Market Capture (5 Years, Monthly)99.70 - Down Market Capture (5 Years, Monthly)101.27 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Atmos Energy Corp 0.3 0.3 0.0 7.1 Teleflex Inc 0.3 0.3 0.0 20.4 UGI Corp 0.3 0.3 0.0 7.7 Cadence Design Systems Inc 0.3 0.3 0.0 24.5 HD Supply Holdings Inc 0.3 0.3 0.0 -3.3 CDW Corp 0.3 0.3 0.0 11.1 Packaging Corp Of America 0.3 0.3 0.0 8.8 Align Technology Inc 0.3 0.3 0.0 19.3 Domino's Pizza Inc 0.3 0.3 0.0 16.0 Diamondback Energy Inc 0.3 0.3 0.0 2.6 % of Portfolio 3.0 3.0 Distribution of Market Capitalization (%) Vanguard Small-Cap Index (NAESX) CRSP U.S. Small Cap TR Index 0.0 25.0 50.0 75.0 100.0 >$75 Bil $5 Bil - $20 Bil $0 - $5 Bil Cash 0.0 31.2 68.8 0.00.0 31.1 68.9 0.0 Sector Weights (%) Vanguard Small-Cap Index (NAESX) CRSP U.S. Small Cap TR Index 0.0 4.0 8.0 12.0 16.0 20.0 Cash Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.0 4.0 0.4 11.0 6.1 16.6 15.5 10.9 14.7 5.0 3.4 12.4 0.0 4.0 0.4 11.0 6.1 16.6 15.5 10.9 14.8 5.0 3.4 12.4 Manager Evaluation Vanguard Small-Cap Index (NAESX) vs. CRSP U.S. Small Cap TR Index As of March 31, 2017 33 Historical Performance Buy and Hold Attribution Risk and Return (Apr - 2012 - Mar - 2017)Three Year Rolling Percentile Ranking Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Int. Growth (VWIGX)12.6 12.6 17.0 2.7 6.8 3.4 1.7 -0.7 -5.6 22.9 20.0 -13.7 15.7 41.6 -44.9 16.0 MSCI AC World ex USA (Net)7.9 7.9 13.1 0.6 4.4 1.4 4.5 -5.7 -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 IM International Equity 8.7 8.7 12.1 0.8 4.9 1.5 1.8 -2.8 -4.5 17.4 18.6 -14.9 12.9 36.4 -46.0 13.2 Vanguard Int. Growth (VWIGX) Rank 15 15 22 22 18 20 51 37 62 23 36 40 36 39 44 39 Vanguard Int. Growth (VWIGX)MSCI AC World ex USA (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 0.0 3.0 6.0 9.0 12.0 Return (%)8.8 9.6 10.4 11.2 12.0 12.8 13.6 14.4 15.2 16.0 Risk (Standard Deviation %) MSCI AC World ex USA (Net) Vanguard Int. Growth (VWIGX) Average Active Weight 0.0 15.0 30.0-15.0 Utilities Telecommunication Services Real Estate Other Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary Cash -3.2 -0.7 -3.3 0.2 -3.4 13.3 -1.5 1.3 -5.4 -5.7 -3.0 11.4 0.0 Allocation (Total: 1.3) 0.0 0.6 1.2 1.8-0.6 0.0 0.0 0.0 0.0 0.0 0.9 0.0 0.0 0.0 0.5 0.0 -0.1 0.0 Stock (Total: 3.3) 0.0 1.5 3.0-1.5 0.0 0.0 0.0 0.0 -0.1 0.7 0.3 0.2 0.3 0.0 0.0 1.9 0.0 Vanguard Int. Growth (VWIGX) 0.0 0.8 1.6 2.4 3.2-0.8-1.6 0.0 0.0 0.0 0.0 -0.1 1.6 0.3 0.2 0.3 0.5 0.0 1.7 0.0 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) As of March 31, 2017 Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading. 34 Total Attribution 0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1-0.3-0.6-0.9 Pacific Other North America Middle East Frontier Markets Europe ex EMU EMU EM Latin America EM Europe + Middle East + Africa EM Asia Cash 0.7 0.0 1.3 0.4 0.3 0.8 0.2 -0.1 0.2 0.7 0.0 Performance Attribution Average Active Weight 0.0 5.0 10.0 15.0-5.0-10.0-15.0 Pacific Other North America Middle East Frontier Markets Europe ex EMU EMU EM Latin America EM Europe + Middle East + Africa EM Asia Cash -5.6 -0.2 1.9 1.2 1.2 -2.2 6.2 -1.6 -3.8 2.8 0.0 Allocation (Total: 0.6) 0.0 0.2 0.4 0.6-0.2-0.4 0.0 0.0 -0.1 0.0 0.3 0.0 0.0 -0.1 0.2 0.2 0.0 Stock (Total: 4.0) 0.0 0.6 1.2 1.8 2.4-0.6-1.2 0.6 0.0 1.4 0.5 0.0 0.8 0.2 0.0 0.0 0.6 0.0 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) 1 Quarter Ending March 31, 2017 35 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)77,551 55,193 Median Mkt. Cap ($M)22,879 7,415 Price/Earnings ratio 25.8 17.1 Price/Book ratio 3.8 2.2 5 Yr. EPS Growth Rate (%)11.4 4.9 Current Yield (%)1.4 3.0 Debt to Equity 1.1 1.1 Number of Stocks 127 1,853 Beta (5 Years, Monthly)1.05 1.00 Consistency (5 Years, Monthly)50.00 1.00 Sharpe Ratio (5 Years, Monthly)0.54 0.39 Information Ratio (5 Years, Monthly)0.64 - Up Market Capture (5 Years, Monthly)111.17 - Down Market Capture (5 Years, Monthly)98.23 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Tencent Holdings LTD 5.1 0.9 4.2 17.2 Alibaba Group Holding Ltd 4.4 0.6 3.8 22.8 ASML Holding NV 3.3 0.3 3.0 18.2 AIA Group Ltd 3.1 0.4 2.7 11.7 Amazon.com Inc 3.1 0.0 3.1 18.2 Industria De Diseno Textil Inditex SA 3.0 0.2 2.8 3.3 Baidu Inc 3.0 0.3 2.7 4.9 Softbank Group Corp 1.9 0.3 1.6 6.3 Atlas Copco AB 1.9 0.1 1.8 16.0 Zalando SE 1.8 0.0 1.8 5.9 % of Portfolio 30.6 3.1 Distribution of Market Capitalization (%) Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) 0.0 15.0 30.0 45.0 60.0 >$75 Bil $20 Bil - $75 Bil $5 Bil - $20 Bil $0 - $5 Bil 23.4 39.3 30.7 6.7 31.6 36.6 28.1 3.6 Sector Weights (%) Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Other Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.2 0.0 3.7 0.0 4.4 23.4 10.1 9.1 17.6 1.3 6.4 23.8 0.0 3.2 4.5 3.2 8.0 9.9 11.9 8.0 23.3 6.8 9.9 11.3 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) As of March 31, 2017 36 Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) Australia 0.4 5.3 Hong Kong 8.7 4.7 Japan 11.8 16.3 New Zealand 0.0 0.1 Singapore 0.0 0.9 Pacific 20.9 27.3 Austria 0.0 0.1 Belgium 0.3 0.8 Finland 0.0 0.7 France 4.5 6.7 Germany 9.0 6.6 Ireland 0.4 0.4 Italy 2.8 1.4 Netherlands 4.3 2.6 Portugal 0.3 0.1 Spain 5.3 2.3 EMU 26.9 21.6 Denmark 3.0 1.1 Norway 1.2 0.4 Sweden 5.4 2.0 Switzerland 3.0 6.1 United Kingdom 7.6 12.6 Europe ex EMU 20.2 22.3 Canada 1.8 6.9 United States 8.0 0.3 Israel 2.0 0.5 Middle East 2.0 0.5 Developed Markets 79.8 78.9 Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) Brazil 1.0 1.8 Cayman Islands 0.0 0.0 Chile 0.0 0.3 Colombia 0.0 0.1 Mexico 0.3 0.9 Peru 0.0 0.0 Virgin Islands 0.0 0.0 EM Latin America 1.3 3.1 China 11.1 3.8 India 2.2 2.1 Indonesia 0.4 0.6 Korea 2.1 3.5 Malaysia 0.0 0.6 Philippines 0.0 0.3 Taiwan 1.2 2.9 Thailand 0.5 0.5 EM Asia 17.5 14.3 Czech Republic 0.0 0.0 Egypt 0.0 0.0 Greece 0.0 0.1 Hungary 0.0 0.1 Poland 0.0 0.3 Qatar 0.0 0.2 Russia 0.0 0.9 South Africa 0.0 1.6 Turkey 0.0 0.2 United Arab Emirates 0.0 0.2 EM Europe + Middle East + Africa 0.0 3.6 Emerging Markets 18.8 20.9 Frontier Markets 1.4 0.0 Cash 0.0 0.0 Other 0.0 0.2 Total 100.0 100.0 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) As of March 31, 2017 37 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Total Bond Market Index Fund (VBMFX)0.9 0.9 0.3 2.5 2.2 4.1 2.5 0.3 5.8 -2.3 4.0 7.6 6.4 5.9 5.1 6.9 Vanguard Total Bond Market Index Fund Benchmark 0.8 0.8 0.5 2.7 2.4 4.3 2.8 0.4 5.9 -2.0 4.3 7.9 6.6 5.9 5.2 7.0 IM U.S. Broad Market Core+ Fixed Income 1.3 1.3 2.9 2.7 3.0 4.9 4.2 -0.2 5.3 -1.1 8.3 5.9 8.3 14.3 -3.0 5.5 Vanguard Total Bond Market Index Fund (VBMFX) Rank 94 94 100 60 93 82 89 25 40 85 98 20 88 100 11 25 Vanguard Total Bond Market Index Fund (VBMFX) Vanguard Total Bond Market Index Fund Benchmark 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.3 0.6 -0.3 -0.6Return (%)6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Total Bond Market Index Fund (VBMFX)2.2 3.0 2.1 -0.3 1.0 0.7 0.2 -0.8 1.9 43.3 30y 3m Vanguard Total Bond Market Index Fund Benchmark 2.4 2.9 2.3 0.0 1.0 0.8 0.0 N/A 1.8 0.0 30y 3m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 2.9 -0.8 0.0 36.7 30y 3m Manager Evaluation Vanguard Total Bond Market Index Fund (VBMFX) vs. Vanguard Total Bond Market Index Fund Benchmark As of March 31, 2017 Note: Prior to January 1, 2010, the Vanguard Total Bond Market Index was benchmarked to the Barclays Aggregate Index. Starting on January 1, 2010, the benchmark was transitioned to the Barclays Aggregate Float Adjusted Index. 38 Portfolio Characteristics Portfolio Benchmark Effective Duration 6.1 6.1 Avg. Maturity 8.3 8.3 Avg. Quality AA AA+ Yield To Maturity (%)2.6 2.5 Credit Quality Distribution (%) Vanguard Total Bond Market Index (VBMFX) Blmbg. Barc. U.S. Aggregate Float Adjusted 0.0 25.0 50.0 75.0 100.0 AAAAAABBB68.8 5.1 11.3 14.8 69.3 4.4 11.3 15.0 Maturity Distribution (%) Vanguard Total Bond Market Index (VBMFX) Blmbg. Barc. U.S. Aggregate Float Adjusted 0.0 15.0 30.0 45.0 60.0 < 1 Yr1 < 3 Yrs3 < 5 Yrs5 < 10 Yrs10 < 20 Yrs> 20 Yrs0.0 23.0 20.9 37.9 5.4 12.8 0.8 22.0 21.8 39.0 3.7 12.7 Sector Distribution (%) Vanguard Total Bond Market Index (VBMFX) Blmbg. Barc. U.S. Aggregate Float Adjusted 0.0 15.0 30.0 45.0 60.0 TreasuriesAgenciesCreditMBSABSNon-USEmergingOtherCMBS40.4 2.9 23.1 21.2 0.5 7.9 2.1 0.0 1.9 40.5 2.4 27.8 21.1 0.3 5.8 0.0 0.4 1.7 Manager Evaluation Vanguard Total Bond Market Index (VBMFX) vs. Blmbg. Barc. U.S. Aggregate Float Adjusted As of March 31, 2017 39 Historical Performance Comparative Performance and Rolling Return Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Quarterly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Retirement Savings Trust 0.4 0.4 1.8 1.9 1.9 2.7 1.9 1.9 1.8 1.7 2.4 2.9 2.9 3.0 4.3 4.5 Ryan 3 Yr GIC Master 0.4 0.4 1.4 1.2 1.2 2.5 1.4 1.2 1.0 1.1 1.5 2.4 3.5 4.5 4.8 4.5 IM U.S. Short Duration Fixed Income (MF) Median 0.4 0.4 1.2 0.8 0.9 2.1 1.4 0.3 0.6 0.2 2.3 1.2 3.2 6.1 -1.1 4.9 Vanguard Retirement Savings Trust Rank 52 52 28 6 11 21 30 1 6 4 49 9 56 77 22 61 Rolling 3 Years Active Return Quarterly Active Return 0.0 0.7 1.4 -0.7 -1.4Active Return (%)3/03 6/04 9/05 12/06 3/08 6/09 9/10 12/11 3/13 6/14 9/15 3/17 0.0 0.6 1.2 1.8 2.4 3.0 Return (%)0.0 0.1 0.2 Risk (Standard Deviation %) Ryan 3 Yr GIC Master Vanguard Retirement Savings Trust Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Retirement Savings Trust 1.9 0.1 1.8 1.2 0.6 14.8 0.1 7.1 0.0 100.0 14y 3m Ryan 3 Yr GIC Master 1.2 0.1 1.1 0.0 1.0 18.1 0.0 N/A 0.0 0.0 14y 3m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 -0.4 0.5 N/A 0.1 -18.1 0.0 0.0 14y 3m Manager Evaluation Vanguard Retirement Savings Trust vs. Ryan 3 Yr GIC Master As of March 31, 2017 40 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Balanced Index Fund (VBINX)3.8 3.8 10.6 6.8 8.7 6.5 8.6 0.4 9.8 17.9 11.3 4.1 13.1 20.1 -22.2 6.2 Vanguard Balanced Index Fund Benchmark 3.8 3.8 10.8 7.0 8.9 6.7 8.8 0.6 9.9 18.2 11.6 4.1 13.5 19.7 -22.0 6.3 IM Mixed-Asset Target Alloc Growth 4.5 4.5 11.3 4.9 7.7 5.0 6.7 -1.2 6.3 19.8 13.0 -1.9 12.7 24.9 -30.7 6.4 Vanguard Balanced Index Fund (VBINX) Rank 76 76 61 10 23 11 23 18 12 71 80 3 43 84 7 55 Vanguard Balanced Index Fund (VBINX) Vanguard Balanced Index Fund Benchmark 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.4 0.8 -0.4 -0.8Return (%)6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Balanced Index Fund (VBINX)8.7 6.2 8.4 -0.2 1.0 1.4 0.1 -1.4 3.3 33.3 24y 4m Vanguard Balanced Index Fund Benchmark 8.9 6.2 8.6 0.0 1.0 1.4 0.0 N/A 3.3 0.0 24y 4m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 6.2 -1.4 0.0 25.0 24y 4m Manager Evaluation Vanguard Balanced Index Fund (VBINX) vs. Vanguard Balanced Index Fund Benchmark As of March 31, 2017 Note: Prior to June 1, 2005, the Vanguard Balanced Index was benchmarked to 60% DJ U.S. Total Stock Market Index/40% LB Aggregate Bond Index. From June 1, 2005 to December 31, 2009, the Index fund was benchmarked to 60% MSCI US Broad Market Index/40% BC Aggregate Index. From January 1, 2010 to January 14, 2013, the Index fund was benchmarked to 60% MSCI US Broad Market Index/40% BC Aggregate Float Adjusted Index. Starting January 15, 2013, the benchmark transitioned to 60% CRSP US Total Market Index/40% BC Aggregate Float Adjusted Index. 41 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)133,411 133,375 Median Mkt. Cap ($M)1,207 1,003 Price/Earnings ratio 21.4 21.5 Price/Book ratio 3.1 3.1 5 Yr. EPS Growth Rate (%)11.6 11.6 Current Yield (%)1.9 1.9 Debt to Equity 1.1 1.1 Number of Stocks 3,348 3,590 Beta (5 Years, Monthly)0.58 1.00 Consistency (5 Years, Monthly)33.33 1.00 Sharpe Ratio (5 Years, Monthly)1.37 1.24 Information Ratio (5 Years, Monthly)-0.99 - Up Market Capture (5 Years, Monthly)62.23 - Down Market Capture (5 Years, Monthly)56.89 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Apple Inc 2.9 2.9 0.0 24.6 Microsoft Corp 2.0 2.0 0.0 6.6 Amazon.com Inc 1.5 1.5 0.0 18.2 Facebook Inc 1.4 1.4 0.0 23.5 Johnson & Johnson 1.4 1.4 0.0 8.8 Exxon Mobil Corp 1.4 1.4 0.0 -8.3 JPMorgan Chase & Co 1.3 1.3 0.0 2.4 Berkshire Hathaway Inc 1.2 0.8 0.4 2.3 General Electric Co 1.1 1.1 0.0 -4.9 AT&T Inc 1.0 1.0 0.0 -1.1 % of Portfolio 15.2 14.8 Distribution of Market Capitalization (%) Vanguard Balanced Index Fund (VBINX) - Equity Holdings CRSP U.S. Total Market TR Index 0.0 15.0 30.0 45.0 60.0 >$75 Bil $20 Bil - $75 Bil $5 Bil - $20 Bil $0 - $5 Bil 44.7 26.5 18.0 10.7 44.7 26.6 18.0 10.7 Sector Weights (%) Vanguard Balanced Index Fund (VBINX) - Equity Holdings CRSP U.S. Total Market TR Index 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 3.2 2.2 4.1 3.4 21.0 10.8 13.4 14.8 6.2 8.4 12.5 3.2 2.2 4.1 3.4 21.1 10.8 13.4 14.9 6.2 8.3 12.5 Manager Evaluation Vanguard Balanced Index Fund (VBINX) - Equity Holdings vs. CRSP U.S. Total Market TR Index As of March 31, 2017 42 Portfolio Characteristics Portfolio Benchmark Effective Duration 6.1 6.1 Avg. Maturity 8.3 8.3 Avg. Quality AA AA+ Yield To Maturity (%)2.6 2.5 Credit Quality Distribution (%) Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings Blmbg. Barc. U.S. Aggregate Float Adjusted 0.0 25.0 50.0 75.0 100.0 AAAAAABBB68.8 5.1 11.3 14.8 69.5 4.3 11.1 15.1 Maturity Distribution (%) Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings Blmbg. Barc. U.S. Aggregate Float Adjusted 0.0 15.0 30.0 45.0 60.0 < 1 Yr1 < 3 Yrs3 < 5 Yrs5 < 10 Yrs10 < 20 Yrs> 20 Yrs0.0 23.0 20.9 37.9 5.4 12.8 0.3 21.9 17.6 21.6 8.2 30.3 Sector Distribution (%) Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings Blmbg. Barc. U.S. Aggregate Float Adjusted 0.0 15.0 30.0 45.0 60.0 TreasuriesAgenciesCreditMBSABSNon-USEmergingMunicipalsCashCMBS40.4 2.9 23.1 21.2 0.5 7.9 2.1 0.0 0.0 1.9 40.0 3.7 27.1 18.3 0.6 0.0 0.0 0.6 5.1 4.7 Manager Evaluation Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings vs. Blmbg. Barc. U.S. Aggregate Float Adjusted As of March 31, 2017 43 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement Income (VTINX)2.5 2.5 5.4 3.8 4.6 5.0 5.3 -0.2 5.5 5.9 8.2 5.2 9.4 14.3 -10.9 8.2 Vanguard Target Income Composite Index (Net)2.4 2.4 5.5 4.0 4.8 5.0 5.4 0.1 5.8 6.0 8.4 5.3 9.4 14.3 -11.3 8.1 IM Mixed-Asset Target Today 2.7 2.7 6.1 3.0 4.0 3.8 5.2 -1.4 3.9 5.3 8.9 2.8 9.5 18.1 -16.0 4.9 Vanguard Target Retirement Income (VTINX) Rank 66 66 74 15 25 11 46 10 10 37 67 9 53 82 10 1 Vanguard Target Retirement Income (VTINX) Vanguard Target Income Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 4.2 4.4 4.6 4.8 5.0 5.2 Return (%)3.0 3.1 3.2 Risk (Standard Deviation %) Vanguard Target Income Composite Index (Net) Vanguard Target Retirement Income (VTINX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement Income (VTINX)4.6 3.6 4.5 -0.1 1.0 1.2 0.3 -0.6 2.0 43.3 13y 5m Vanguard Target Income Composite Index (Net)4.8 3.6 4.6 0.0 1.0 1.3 0.0 N/A 2.0 0.0 13y 5m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 3.6 -1.3 0.0 31.7 13y 5m Manager Evaluation Vanguard Target Retirement Income (VTINX) vs. Vanguard Target Income Composite Index (Net) As of March 31, 2017 44 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2010 (VTENX)2.5 2.5 5.5 3.9 5.3 4.7 5.2 -0.2 5.9 9.1 10.1 3.4 11.4 19.3 -20.7 7.7 Vanguard Target 2010 Composite Index (Net)2.5 2.5 5.7 4.1 5.5 4.7 5.4 0.0 6.1 9.3 10.2 3.3 11.5 19.3 -20.9 7.7 IM Mixed-Asset Target 2010 3.1 3.1 7.4 3.7 5.3 3.8 6.0 -1.2 4.1 8.7 9.8 0.8 10.8 23.3 -26.0 5.9 Vanguard Target Retirement 2010 (VTENX) Rank 90 90 94 36 56 12 79 8 7 50 46 6 35 81 21 8 Vanguard Target Retirement 2010 (VTENX) Vanguard Target 2010 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 5.0 5.2 5.4 5.6 5.8 Return (%)3.5 3.6 3.7 Risk (Standard Deviation %) Vanguard Target 2010 Composite Index (Net) Vanguard Target Retirement 2010 (VTENX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2010 (VTENX)5.3 4.2 5.2 -0.1 1.0 1.2 0.3 -0.6 2.4 45.0 10y 9m Vanguard Target 2010 Composite Index (Net)5.5 4.3 5.3 0.0 1.0 1.3 0.0 N/A 2.4 0.0 10y 9m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 4.3 -1.3 0.0 30.0 10y 9m Manager Evaluation Vanguard Target Retirement 2010 (VTENX) vs. Vanguard Target 2010 Composite Index (Net) As of March 31, 2017 45 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2015 (VTXVX)3.4 3.4 7.7 4.6 6.5 5.0 6.2 -0.5 6.6 13.0 11.4 1.7 12.5 21.3 -24.1 7.5 Vanguard Target 2015 Composite Index (Net)3.3 3.3 7.9 4.8 6.7 5.1 6.4 -0.2 6.8 13.3 11.5 1.6 12.5 21.2 -24.4 7.6 IM Mixed-Asset Target 2015 3.4 3.4 8.1 3.9 6.0 4.4 6.4 -1.3 4.5 10.4 10.8 -0.1 11.5 25.3 -29.3 6.1 Vanguard Target Retirement 2015 (VTXVX) Rank 53 53 66 22 29 9 61 10 4 24 36 24 33 76 18 22 Vanguard Target Retirement 2015 (VTXVX) Vanguard Target 2015 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 6.2 6.4 6.6 6.8 7.0 Return (%)4.4 4.5 4.6 Risk (Standard Deviation %) Vanguard Target 2015 Composite Index (Net) Vanguard Target Retirement 2015 (VTXVX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2015 (VTXVX)6.5 5.5 6.3 -0.1 1.0 1.1 0.3 -0.6 3.2 46.7 13y 5m Vanguard Target 2015 Composite Index (Net)6.7 5.5 6.5 0.0 1.0 1.2 0.0 N/A 3.2 0.0 13y 5m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 5.5 -1.2 0.0 31.7 13y 5m Manager Evaluation Vanguard Target Retirement 2015 (VTXVX) vs. Vanguard Target 2015 Composite Index (Net) As of March 31, 2017 46 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2020 (VTWNX)4.1 4.1 9.4 5.2 7.3 5.2 6.9 -0.7 7.1 15.8 12.3 0.6 13.1 23.1 -27.0 7.5 Vanguard Target 2020 Composite Index (Net)4.0 4.0 9.6 5.4 7.6 5.4 7.2 -0.4 7.4 16.2 12.5 1.0 13.3 23.3 -27.4 7.6 IM Mixed-Asset Target 2020 3.8 3.8 8.9 3.7 5.9 3.9 6.3 -1.4 4.7 11.8 11.5 -0.4 12.3 26.0 -31.8 6.3 Vanguard Target Retirement 2020 (VTWNX) Rank 22 22 28 4 7 4 30 24 1 19 37 33 37 71 22 34 Vanguard Target Retirement 2020 (VTWNX) Vanguard Target 2020 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 7.2 7.5 7.8 8.1 Return (%)5.1 5.2 5.3 Risk (Standard Deviation %) Vanguard Target 2020 Composite Index (Net) Vanguard Target Retirement 2020 (VTWNX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2020 (VTWNX)7.3 6.4 7.2 -0.1 1.0 1.1 0.4 -0.6 3.7 38.3 10y 9m Vanguard Target 2020 Composite Index (Net)7.6 6.5 7.4 0.0 1.0 1.1 0.0 N/A 3.8 0.0 10y 9m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 6.5 -1.1 0.0 31.7 10y 9m Manager Evaluation Vanguard Target Retirement 2020 (VTWNX) vs. Vanguard Target 2020 Composite Index (Net) As of March 31, 2017 47 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2025 (VTTVX)4.6 4.6 10.7 5.5 7.9 5.3 7.5 -0.8 7.2 18.1 13.3 -0.4 13.8 24.8 -30.1 7.6 Vanguard Target 2025 Composite Index (Net)4.5 4.5 10.8 5.7 8.2 5.4 7.7 -0.6 7.4 18.5 13.4 0.1 13.9 25.2 -30.4 7.6 IM Mixed-Asset Target 2025 4.3 4.3 10.1 4.3 6.8 4.6 6.9 -1.4 5.2 15.9 13.0 -2.0 13.4 28.9 -35.0 7.2 Vanguard Target Retirement 2025 (VTTVX) Rank 31 31 34 6 17 15 26 24 4 24 45 18 39 80 16 45 Vanguard Target Retirement 2025 (VTTVX) Vanguard Target 2025 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 7.5 7.8 8.1 8.4 8.7 Return (%)5.7 5.8 5.9 Risk (Standard Deviation %) Vanguard Target 2025 Composite Index (Net) Vanguard Target Retirement 2025 (VTTVX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2025 (VTTVX)7.9 7.2 7.8 -0.1 1.0 1.1 0.4 -0.5 4.2 45.0 13y 5m Vanguard Target 2025 Composite Index (Net)8.2 7.3 8.0 0.0 1.0 1.1 0.0 N/A 4.3 0.0 13y 5m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 7.3 -1.1 0.0 30.0 13y 5m Manager Evaluation Vanguard Target Retirement 2025 (VTTVX) vs. Vanguard Target 2025 Composite Index (Net) As of March 31, 2017 48 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2030 (VTHRX)5.1 5.1 11.9 5.7 8.5 5.3 7.9 -1.0 7.2 20.5 14.2 -1.3 14.4 26.7 -32.9 7.5 Vanguard Target 2030 Composite Index (Net)5.0 5.0 12.0 5.9 8.7 5.5 8.1 -0.8 7.5 20.9 14.3 -0.9 14.6 27.0 -33.3 7.6 IM Mixed-Asset Target 2030 4.8 4.8 11.6 4.6 7.3 4.2 7.3 -1.6 5.2 17.9 13.7 -2.6 13.6 28.8 -36.4 6.5 Vanguard Target Retirement 2030 (VTHRX) Rank 31 31 39 9 13 14 34 30 6 28 40 23 34 73 17 40 Vanguard Target Retirement 2030 (VTHRX) Vanguard Target 2030 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 8.1 8.4 8.7 9.0 9.3 Return (%)6.3 6.4 6.5 6.6 Risk (Standard Deviation %) Vanguard Target 2030 Composite Index (Net) Vanguard Target Retirement 2030 (VTHRX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2030 (VTHRX)8.5 8.0 8.4 -0.1 1.0 1.1 0.5 -0.5 4.7 45.0 10y 9m Vanguard Target 2030 Composite Index (Net)8.7 8.1 8.6 0.0 1.0 1.1 0.0 N/A 4.8 0.0 10y 9m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.1 -1.1 0.0 31.7 10y 9m Manager Evaluation Vanguard Target Retirement 2030 (VTHRX) vs. Vanguard Target 2030 Composite Index (Net) As of March 31, 2017 49 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2035 (VTTHX)5.5 5.5 13.0 6.0 9.1 5.5 8.3 -1.3 7.2 22.8 15.2 -2.2 15.1 28.2 -34.7 7.5 Vanguard Target 2035 Composite Index (Net)5.4 5.4 13.2 6.2 9.3 5.6 8.6 -1.0 7.6 23.3 15.2 -1.9 15.2 28.7 -35.1 7.6 IM Mixed-Asset Target 2035 5.3 5.3 12.8 5.1 7.9 4.9 7.8 -1.7 5.4 20.8 14.7 -3.3 14.6 31.0 -36.1 7.5 Vanguard Target Retirement 2035 (VTTHX) Rank 40 40 41 13 15 18 36 38 9 25 42 21 29 66 13 51 Vanguard Target Retirement 2035 (VTTHX) Vanguard Target 2035 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 8.7 9.0 9.3 9.6 Return (%)7.0 7.1 7.2 Risk (Standard Deviation %) Vanguard Target 2035 Composite Index (Net) Vanguard Target Retirement 2035 (VTTHX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2035 (VTTHX)9.1 8.8 9.0 -0.1 1.0 1.0 0.5 -0.5 5.3 43.3 13y 5m Vanguard Target 2035 Composite Index (Net)9.3 8.8 9.2 0.0 1.0 1.0 0.0 N/A 5.3 0.0 13y 5m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.8 -1.0 0.0 33.3 13y 5m Manager Evaluation Vanguard Target Retirement 2035 (VTTHX) vs. Vanguard Target 2035 Composite Index (Net) As of March 31, 2017 50 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2040 (VFORX)6.0 6.0 14.3 6.1 9.4 5.7 8.7 -1.6 7.1 24.4 15.6 -2.5 15.2 28.3 -34.5 7.5 Vanguard Target 2040 Composite Index (Net)5.9 5.9 14.4 6.4 9.7 5.8 9.0 -1.2 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 IM Mixed-Asset Target 2040 5.6 5.6 13.6 5.2 8.2 4.4 8.0 -1.7 5.4 21.7 14.9 -3.9 14.6 30.7 -38.1 6.5 Vanguard Target Retirement 2040 (VFORX) Rank 28 28 26 12 10 12 29 44 12 17 33 21 37 76 4 33 Vanguard Target Retirement 2040 (VFORX) Vanguard Target 2040 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 9.0 9.3 9.6 9.9 10.2 Return (%)7.5 7.6 7.7 Risk (Standard Deviation %) Vanguard Target 2040 Composite Index (Net) Vanguard Target Retirement 2040 (VFORX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2040 (VFORX)9.4 9.4 9.4 -0.1 1.0 1.0 0.5 -0.5 5.6 43.3 10y 9m Vanguard Target 2040 Composite Index (Net)9.7 9.5 9.6 0.0 1.0 1.0 0.0 N/A 5.7 0.0 10y 9m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.5 -1.0 0.0 33.3 10y 9m Manager Evaluation Vanguard Target Retirement 2040 (VFORX) vs. Vanguard Target 2040 Composite Index (Net) As of March 31, 2017 51 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2045 (VTIVX)6.2 6.2 14.7 6.2 9.5 5.7 8.9 -1.6 7.2 24.4 15.6 -2.5 15.2 28.2 -34.6 7.5 Vanguard Target 2045 Composite Index (Net)6.0 6.0 14.8 6.5 9.8 5.9 9.1 -1.3 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 IM Mixed-Asset Target 2045 5.9 5.9 14.1 5.5 8.6 4.8 8.2 -1.8 5.5 23.1 15.5 -4.0 15.0 31.1 -38.5 6.8 Vanguard Target Retirement 2045 (VTIVX) Rank 32 32 31 14 16 22 30 44 13 27 44 15 43 87 11 49 Vanguard Target Retirement 2045 (VTIVX) Vanguard Target 2045 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 9.0 9.3 9.6 9.9 10.2 Return (%)7.5 7.6 7.7 7.8 Risk (Standard Deviation %) Vanguard Target 2045 Composite Index (Net) Vanguard Target Retirement 2045 (VTIVX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2045 (VTIVX)9.5 9.4 9.4 -0.1 1.0 1.0 0.5 -0.5 5.7 48.3 13y 5m Vanguard Target 2045 Composite Index (Net)9.8 9.5 9.7 0.0 1.0 1.0 0.0 N/A 5.7 0.0 13y 5m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.5 -1.0 0.0 33.3 13y 5m Manager Evaluation Vanguard Target Retirement 2045 (VTIVX) vs. Vanguard Target 2045 Composite Index (Net) As of March 31, 2017 52 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2050 (VFIFX)6.2 6.2 14.7 6.2 9.5 5.7 8.9 -1.6 7.2 24.3 15.6 -2.5 15.2 28.3 -34.6 7.5 Vanguard Target 2050 Composite Index (Net)6.0 6.0 14.8 6.5 9.8 5.9 9.1 -1.3 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 IM Mixed-Asset Target 2050 5.9 5.9 14.2 5.5 8.6 4.4 8.2 -1.8 5.6 23.1 15.5 -4.4 14.8 31.4 -39.1 6.6 Vanguard Target Retirement 2050 (VFIFX) Rank 34 34 36 14 14 19 32 46 17 31 47 14 37 92 6 25 Vanguard Target Retirement 2050 (VFIFX) Vanguard Target 2050 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 9.0 9.3 9.6 9.9 10.2 Return (%)7.5 7.6 7.7 7.8 Risk (Standard Deviation %) Vanguard Target 2050 Composite Index (Net) Vanguard Target Retirement 2050 (VFIFX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2050 (VFIFX)9.5 9.4 9.4 -0.1 1.0 1.0 0.5 -0.5 5.7 45.0 10y 9m Vanguard Target 2050 Composite Index (Net)9.8 9.5 9.7 0.0 1.0 1.0 0.0 N/A 5.7 0.0 10y 9m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.5 -1.0 0.0 33.3 10y 9m Manager Evaluation Vanguard Target Retirement 2050 (VFIFX) vs. Vanguard Target 2050 Composite Index (Net) As of March 31, 2017 53 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2055 (VFFVX)6.2 6.2 14.7 6.2 9.5 N/A 8.9 -1.7 7.2 24.3 15.6 -2.3 N/A N/A N/A N/A Vanguard Target 2055 Composite Index (Net)6.0 6.0 14.8 6.5 9.8 N/A 9.1 -1.3 7.6 24.8 15.6 -2.1 N/A N/A N/A N/A IM Mixed-Asset Target 2055+6.1 6.1 14.4 5.6 8.9 N/A 8.1 -1.6 5.4 23.3 15.6 -4.7 14.8 30.8 -40.7 N/A Vanguard Target Retirement 2055 (VFFVX) Rank 43 43 40 19 26 N/A 28 55 17 38 50 1 N/A N/A N/A N/A Vanguard Target Retirement 2055 (VFFVX) Vanguard Target 2055 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 9.0 9.3 9.6 9.9 10.2 Return (%)7.5 7.6 7.7 7.8 Risk (Standard Deviation %) Vanguard Target 2055 Composite Index (Net) Vanguard Target Retirement 2055 (VFFVX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2055 (VFFVX)9.5 9.4 9.4 -0.2 1.0 1.0 0.5 -0.5 5.7 45.0 6y 6m Vanguard Target 2055 Composite Index (Net)9.8 9.5 9.7 0.0 1.0 1.0 0.0 N/A 5.7 0.0 6y 6m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.5 -1.0 0.0 33.3 6y 6m Manager Evaluation Vanguard Target Retirement 2055 (VFFVX) vs. Vanguard Target 2055 Composite Index (Net) As of March 31, 2017 54 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2017) Historical Statistics - Monthly Periodicity (Apr-2012 - Mar-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement 2060 (VTTSX)6.2 6.2 14.7 6.2 9.5 N/A 8.8 -1.7 7.2 24.3 N/A N/A N/A N/A N/A N/A Vanguard Target 2060 Composite Index (Net)6.0 6.0 14.8 6.5 9.8 N/A 9.1 -1.3 7.6 24.8 15.6 N/A N/A N/A N/A N/A IM Mixed-Asset Target 2055+6.1 6.1 14.4 5.6 8.9 N/A 8.1 -1.6 5.4 23.3 15.6 -4.7 14.8 30.8 -40.7 N/A Vanguard Target Retirement 2060 (VTTSX) Rank 43 43 42 20 20 N/A 28 52 17 37 N/A N/A N/A N/A N/A N/A Vanguard Target Retirement 2060 (VTTSX) Vanguard Target 2060 Composite Index (Net) 0 25 50 75 100Return Percentile Rank6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 3/17 9.0 9.3 9.6 9.9 10.2 Return (%)7.5 7.6 7.7 7.8 Risk (Standard Deviation %) Vanguard Target 2060 Composite Index (Net) Vanguard Target Retirement 2060 (VTTSX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2060 (VTTSX)9.5 9.4 9.5 -0.1 1.0 1.0 0.5 -0.4 5.6 46.7 5y 2m Vanguard Target 2060 Composite Index (Net)9.8 9.5 9.7 0.0 1.0 1.0 0.0 N/A 5.7 0.0 5y 2m 90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.5 -1.0 0.0 33.3 5y 2m Manager Evaluation Vanguard Target Retirement 2060 (VTTSX) vs. Vanguard Target 2060 Composite Index (Net) As of March 31, 2017 55 Manager Evaluation Ta rget-Date Funds Asset Allocation As of March 31, 2017 U.S.Equi ty 18.1%26.6%33.5%38.6%43.0%47.6%51.9%54.0%53.9%53.9%54.0% Va nguard Total St ock M arket Index Fu nd 18.1%26.6%33.5%38.6%43.0%47.6%51.9%54.0%53.9%53.9%54.0% Non-U.S . Equ ity 12.1%17.8%22.6%26.0%29.0%31.9%35.0%36.0%36.1%36.0%36.0% Va nguard Total In ternational Stock In dex F und 12.1%17.8%22.6%26.0%29.0%31.9%35.0%36.0%36.1%36.0%36.0% Fi xe d In come 69.8%55.6%43.9%35.4%28.0%20.5%13.1%10.0%10.0%10.1%10.0% Va nguard Total Bo nd Marke t II In dex F und 37.3%31.6%28.6%24.9%19.7%14.5%9.2%7.1%7.1%7.1%7.1% Va nguard Total In ternational Bo nd Stock In dex F und 15.9%13.5%12.2%10.5%8.3%6.0%3.9%2.9%2.9%3.0%2.9% Va nguard In fla tion-Pro tected Securit ie s Fund 16.6%10.5%3.1%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0% TO TA L 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Vanguard C omponent Funds Re ti rement In come Tar get Date 2045 Tar get Date 2050 Tar get Date 2015 Tar get Date 2020 Tar get Date 2025 Tar get Date 2030 Tar get Date 2035 Tar get Date 2040 Tar get Date 2055 Tar get Date 2060 0% 10% 20% 30% 40% 50% 60% 70% 80% U.S.Equity Non-U.S.Equity Fi xed In come Re ti rem ent I nc om e Targ et Date 2015 Targ et Date 2020 Targ et Date 2025 Targ et Date 2030 Targ et Date 2035 Targ et Date 2040 Targ et Date 2045 Targ et Date 2050 Targ et Date 2055 Targ et Date 2060 TO TA L 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% 56 Appendix 57 Disclosures This report contains confidential and proprietary information and is intended for the exclusive use of the parties to whom it was provided. Facts and information provided in this report are believed to be accurate at the time of preparation. However, certain information in this document has been provided to Pavilion Advisory Group Inc. (Pavilion) by third parties and subject to change at any time and based on market conditions. Although we believe this information is reliable, we have not independently verified the information. Returns are net of investment fees unless otherwise denoted. Returns for periods greater than one year are annualized. Mutual fund returns assume reinvestment of all distributions at net asset value (NAV) and deduction of fund expenses. Reported fee data is comprised of recordkeeping and administrative expenses only as reported by your recordkeeper ’s most recent 408(b)(2) disclosure. Past performance does not guarantee future results. This document may include certain forward-looking statements that are based on current estimates and forecasts. Actual results could differ materially. Investing in securities products involves risk, including possible loss of principal as the value of investments fluctuates. This report is not to be reproduced, redistributed or retransmitted in any form without prior expressed written consent from Pavilion. ©2017 Pavilion Advisory Group Inc. All rights reserved. www.pavilioncorp.comPavilion Advisory Group Inc. All rights reserved. www.pavilioncorp.com 58