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Deferred Compensation Plan 2Q17Performance Review Metropolitan St. Louis Sewer District Deferred Compensation Plan 2nd 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 4.2 3.1 2.5 6.1 7.9 6.3 3.6 2.6 1.4 0.6 2.1 0.2 2.3 -3.0 2.6 1.4 0.5 19.0 17.9 24.6 20.3 21.4 23.7 11.3 -2.2 -0.3 -1.9 12.8 0.5 0.2 -6.5 7.1 5.5 1.6 -10 -5 0 5 10 15 20 25 30 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. BBG Barclays U.S. Agg. WGBI ex-U.S. Hedged BofAML High Yield Cons. 91-Day T-Bills NAREIT Bloomberg Commodity DJ Brookfield Global Infra. HFRI FoF:Cons.* CPI Performance: Past Quarter and Year (%) Past Quarter Past 12 Months * HFRI data are subject to revision. Source: FactSet & BloombergFixed Income (Bonds)Equities (Stocks)AlternativesSustainable Economic Expansion Capital markets continued to benefit from the ongoing synchronized recovery in global growth,with particularly strong improvements in emerging markets.Cyclical risks remain low across developed markets,which we believe should allow existing trends to remain intact. In addition to strengthening economic conditions,Europe benefited from the positive resolution of several challenges,most notably French election results as well as the release of the final Greek loan payment.The reduction in risk allowed for strong performance of European equity markets. While core inflation remains below target in most developed markets,improving growth has allowed central bank policy makers to begin publicly discussing the prospects for normalizing rates,placing some upward pressure on still historically low yields.The prospects for a future convergence in monetary policy also weighed on the dollar,reducing risks of further rapid appreciation. Domestically,the U.S.yield curve flattened as the Federal Open Market Committee (“FOMC”)raised rates again in June (as expected),marginally detracting from intermediate duration performance;however,declines in long-term rates buoyed longer duration instruments.The improving economic conditions also led to spread compression for most sectors,driving outperformance relative to similar duration Treasuries. Global growth helped boost domestic and international equities.After turning positive in the third quarter of 2016,earnings growth has been robust and widespread with expectations continuing to reflect the improving growth landscape.Internationally, earnings and positive currency movements propelled equity prices higher. For the second quarter in a row,commodity prices turned down,dragged by energy and agriculture prices.While prices declined,income-oriented strategies,like infrastructure,generated positive performance,aided by a flattening yield curve and contractual volume based compensation. 2 Capital Markets Review Asset Class Outlook Equities In our view,the main driver of equity market performance over the past twelve months has been the recovery in earnings growth.While the pace of earnings growth is likely to slow in coming quarters,underlying fundamentals remain strong and should support further growth in earnings as well as equity market performance,especially that of emerging markets.Equity markets also should benefit from modestly positive but constrained inflation levels.Additionally,growth assets in general and equities in particular look more attractive once an adjustment is made for the current low level of interest rates.While U.S.fiscal policy enhancements appear less likely than earlier in the year,any progress should provide tailwinds for the U.S.equity market. Fixed Income The FOMC raised rates again during the quarter,and laid out the framework by which they expect to eventually reduce the balance sheet.During the quarter,spurred by improving global growth conditions,central bankers in several developed markets publicly commented on a change in forward guidance.This changing guidance appears to be designed to prepare investors for the eventual normalization of rates in these markets –bringing the markets into synch with U.S.policy.As a result,interest rates rose across developed markets,while the dollar declined.While we anticipate rates rising,it likely will be very gradual,as key inflation measures remain below target.As a result,we believe investors are well served maintaining 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.While credit markets have experienced further spread tightening,it is difficult to identify a near term catalyst for broad spread widening.Weakness in retail and lower energy prices may,however,put pressure on select industries.Where possible,we recommend investors build in carry advantage through select below investment grade exposures. Real Assets Core inflation remains constrained and below the 2%target in most developed markets. Factors such as globalization,technological innovation,as well as shifting demographics are weighing on inflation,conditions that likely will persist into the foreseeable future. In the U.S.,we do not anticipate inflation levels sustaining an increase much above the Federal Reserve’s 2%target near-term.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. Source: Bloomberg Source: Bloomberg & Federal Reserve Source: FactSet as of July 7, 2017 87.38 73.65 61.93 86.98 98.87 105.24 111.31 118.91 118.75 119.33 131.60 146.88 40 60 80 100 120 140 160 180 CY2007CY2008CY2009CY2010CY2011CY2012CY2013CY2014CY2015CY2016CY2017CY2018Actual Estimates S&P 500 Calendar Year Bottom-Up EPS Actuals & Estimates -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%Jan-15Mar-15May-15Jul-15Sep-15Nov-15Jan-16Mar-16May-16Jul-16Sep-16Nov-16Jan-17Mar-17May-17% Change YOYCore inflation rates remain below target U.S.E.U.U.K.Japan Target 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%Jun-17Aug-17Oct-17Dec-17Feb-18Apr-18Jun-18Aug-18Oct-18Dec-18Feb-19Apr-19Jun-19Aug-19Oct-19Dec-19Feb-20Apr-20Jun-20Projected vs. Expected Path of Fed Funds Futures Fed Projections 3 Fixed Income Equities FinancialStressesValuationsCyclicalCurrent Risk Levels Capital Markets Review Key Market Risks Source: Economic Policy Uncertainty Source: Bloomberg, FactSet, Recession Alert, & Pavilion AnalysisLowHigh Cyclical Risks Remain Low with Regional Disturbances Present Ongoing Threat from European Challenges: −The results of French elections provided some welcome relief,but more elections loom, most notably in Italy. −The U.K.faces rising challenges navigating Brexit.While the decline in the British Pound immediately following the Brexit vote provided some near-term stimulus,the downside is now being felt in the form of rising inflation.This rise in inflation may come at an inopportune moment,as the economy may be feeling the drag from declining capital investment as firms evaluate the post Brexit landscape. −While banks in other E.U.countries have addressed re-capitalization issues,Italy has only begun the process,and the underperformance of Italian banks makes recapitalization efforts more difficult,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.Geopolitical risks also have become more elevated,with the threat of deploying trade sanctions against China as leverage to resolve the North Korean crisis being one example.Near-term,the single biggest policy risk may be the inability to raise the debt ceiling limit. Removing Accommodation Prematurely:Since the beginning of the recovery,several central banks have made attempts to reduce accommodation,most notably the ECB,only to end up reversing course over a relatively short time period.The challenge for the Fed and other central banks will be normalizing rates while simultaneously reducing balance sheets –uncharted waters to be sure. - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Jul-06Apr-07Jan-08Oct-08Jul-09Apr-10Jan-11Oct-11Jul-12Apr-13Jan-14Oct-14Jul-15Apr-16Jan-17Oct-17Jul-18Apr-19Jan-20Oct-20Jul-21Apr-22Jan-23BillionsPotential Change in Fed Balance Sheet Balance Sheet Projected Reduction 0 50 100 150 200 250 300 350 400 450 500 Jun-87Jun-89Jun-91Jun-93Jun-95Jun-97Jun-99Jun-01Jun-03Jun-05Jun-07Jun-09Jun-11Jun-13Jun-15Jun-17Source: Federal Reserve FRED Data & Pavilion Analysis Economic Policy Uncertainty Remains Elevated in The European Union 4 Capital Markets Review Economy Economy Moves Forward, Despite Political Hindrances U.S.economic activity carried on as if plans for tax cuts,healthcare reform and regulatory reforms under a new president never existed.A succinct lack of Congressional productivity planted seeds for future economic uncertainties,as a continuation of current fiscal and regulatory policies may be a hindrance to expanding GDP growth above its decade-long slump.Growth remained dependent upon businesses to lower costs and improve efficiency. The Federal Reserve increased interest rates 25bps in June,and markets expect its tactics to shift from rate increases to balance sheet reduction by allowing Treasury and mortgage holdings to mature without reinvestment.This process is expected to start very gradually so as to gauge market impact. Consumer enthusiasm for auto purchases waned following several strong quarters of growth. A decline in pent-up demand combined with manufacturers’reluctance to cut prices to reduce inventories are negatively affecting the ability of the auto sector to maintain the more recent rapid pace of growth.Auto loan interest rates have moved up slightly,while the median loan term is approaching six years. Unemployment rates reached levels generally considered full employment,where further labor-intensive economic expansion would demand higher wage growth.A decrease in immigration,coupled with increased industrial and manufacturing demand for labor,resulted in escalating wages,though at a pace much lower than traditional models would forecast. Technological improvements brought intense price competition,limiting the ability of businesses to raise prices. Source: Federal Reserve Source: Bloomberg Source: Bloomberg Unemployment Rates Auto Sales -3 -2 -1 0 1 2 3 4 5 6 7 19901992199419961998200020022004200620082010201220142016PercentCPICore CPI U.S. Inflation 2 4 6 8 10 12 14 16 18 Jan-94Jan-96Jan-98Jan-00Jan-02Jan-04Jan-06Jan-08Jan-10Jan-12Jan-14Jan-16PercentUnemployment Rate Marginally Attached Unemployment Rate 8 10 12 14 16 18 20 22 Jun-90Jun-92Jun-94Jun-96Jun-98Jun-00Jun-02Jun-04Jun-06Jun-08Jun-10Jun-12Jun-14Jun-16Millions (annual rate)5 Capital Markets Review Equities Second Quarter and YTD World and Emerging Market Equity Returns Growth Continued to Outperformed Value in the Second Quarter Growth Continued to Propel Equity Markets Higher The S&P 500 Index returned +3.1%during the second quarter.Healthcare posted the strongest returns for the quarter,followed by Industrials,Financials,and Information Technology.Energy and Telecom were the only sectors to post a loss during the second quarter,continuing a trend from the first quarter. Most developed market equity indices provided similar returns in the +4%to +6%range during the second quarter,the exception being the S&P 500 at +3.1%.Emerging Market equities were slightly higher,returning +6.3%,led by China,South Korea,and Taiwan. Growth has continued to outperform value in the second quarter,as it did during the first quarter.Emerging Markets experienced the most pronounced performance differential by style,as well as the highest absolute return of growth stocks. Second Quarter and YTD S&P 500 Sector Returns Source: Factset, MSCISource: Factset, S&P -7.0% -6.4% 1.6% 2.2% 2.4% 2.8% 3.1% 3.2% 4.1% 4.2% 4.7% 7.1% -10.7% -12.6% 8.0% 8.8% 11.0% 6.4% 9.3% 9.2% 17.2% 6.9% 9.5% 16.1% -15.0%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0% Telecom Energy Cons Staples Utilities Cons Disc Real Estate S&P 500 Materials Info Tech Financials Industrials Healthcare 2Q YTD 1.3%1.4% 0.7% 4.8% 3.2% 4.7% 4.2%4.4% 7.5% 9.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% U.S. Large Cap U.S. Mid Cap U.S. Small Cap Int'l Developed Emerging Mkts Value Growth Source: Factset, MSCI, Russell 4.3%3.1%4.0% 5.8%6.1%6.3% 10.6%10.2% 8.8% 2.9%3.5% -6.7% 11.5% 9.3%10.7% 14.1%13.8% 18.4% 24.9% 28.8% 21.6%20.5% 8.0% 3.0% -10.0% 0.0% 10.0% 20.0% 30.0% MSCI ACWI S&P 500 MSCI World MSCI ACWI x US MSCI EAFE MSCI EM China South Korea Taiwan India South Africa Brazil 2Q YTD 6 Source: Bloomberg Barclays Capital Markets Review Fixed Income Source: Bloomberg Barclays U.S. Treasury Yield Curve Change Source: US Dept. of The Treasury Duration –Adjusted Excess Returns to Treasuries (bps) End of Easing Front and Center The Federal Reserve (“Fed”)raised rates 0.25%in June,setting the Federal Funds Rate target at 1.00%to 1.25%.However,Fed comments hint they are poised to take a pause, as concerns about inflation losing steam have taken hold.The Fed also offered details on the strategy of shrinking its balance sheet and plans to allow a small,but increasing amount of securities to mature each month without reinvestment starting later in 2017. Treasuries returned +1.2%for the quarter.The Treasury curve flattened with yields rising at the short-end while longer-term rates fell.The yield curve spread between 2-and 30- year Treasuries fell 29 basis points (bps)while the spread between 10-and 30-year Treasuries narrowed 8 bps.TIPS declined -0.4%on falling inflation expectations. Investment grade credit returned +2.4%for the quarter and outpaced Treasuries by 99 bps on a duration-adjusted basis.The OAS of the U.S.Credit Index ended the quarter 9 bps tighter at 103 bps,a level not seen since 2014.Industrials outpaced utilities,financials, and non-corporates on a duration-adjusted basis.High yield bonds returned +2.2%,while spreads ended the quarter 28 bps tighter at 364 bps.Energy re-emerged as a pocket of weakness,with oil prices hitting calendar year lows in late June. Agency MBS generated a +0.9%total return,but trailed duration-matched Treasuries by 4 bps for the quarter.Spreads ended the quarter 5 bps wider at 32 bps,prodded by the Fed’s discussion of the end of reinvestment in Agency MBS.CMBS and ABS proved resilient with modestly tighter spreads and continued demand for high quality carry in a low yield environment. Best Period Second Best Period Worst Period Second Worst Period Historical High Yield Credit Valuations 0 250 500 750 1,000 1,250 1,500 1,750 2,000 Option Adjusted Spread (OAS)-0.3% -0.2% -0.1% 0.0% 0.1% 0.2% 0.3% 0.4% 0.5% 0.6% 0.7% 2Q17 YTD Ending 2Q17 2010 2011 2012 2013 2014 2015 2016 1Q17 2Q17 Aggregate 171 -114 226 93 10 -53 138 11 30 Agency 77 -25 166 1 10 -133 121 60 20 MBS 225 -106 91 98 40 -5 -11 -17 -4 ABS 169 52 246 24 53 44 95 22 32 CMBS 1501 47 841 97 108 -28 236 8 34 Credit 192 -322 693 226 -18 -169 442 47 99 High Yield 974 -240 1394 923 -112 -577 1573 214 146 EMD (USD)508 -537 1503 -32 -120 3 880 259 72 7 Hedge Funds vs Long-Only: Total Returns 2017 Q2 Capital Markets Review Alternative Investments Global Alternatives Rise with Risk Assets Hedge Funds:Hedge fund strategies posted gains alongside risk assets.Global equity markets continued their climb,energy-and commodity-related investments were challenged, and domestic interest rates fell.Long/short equity strategies posted strong results,and like long-only strategies,managers with long exposures to global stocks and growth-oriented names outperformed those with long exposures to domestic value names and stocks within the troubled energy sector.Distressed-oriented and long/short credit funds struggled to keep up with U.S.bonds and high yield markets,particularly those with energy exposure.These credit strategies typically have little exposure to interest rate duration,which was a tailwind to long-only bond strategies.A robust merger and financing environment continues to be a boon to event-driven strategies,and while relative value strategies generally posted positive returns,macro strategies posted losses. Real Assets:Infrastructure rose +9.9%YTD.The top contributors to performance have been the communications and airport sectors,with the only negative sector being MLPs. From a regional perspective,Europe and Asia have done well,as political uncertainty and economic fears have abated.Many infrastructure companies own long-duration physical assets and enjoy relatively stable,contractually-based cash flows that provide investors with an attractive diversifying income stream. Private Capital Markets:Fundraising remained strong through the second quarter of 2017, as 295 funds closed with commitments totaling $175 billion,bringing total private capital fundraising to $356 billion during H1 2017.Given the current trajectory of fundraising activity,and sustained high levels of fund distributions,it is probable that 2017 will be the largest ever fundraising year for private capital.As was the story in recent years,the industry’s strong returns and increasing dry powder continues to create more competition for deals.Exit activity declined for the third consecutive quarter,with 489 private equity exits in Q2 (vs.576 in Q1).As of May 31,2017,the median LBO EV/EBITDA multiple reached 10.8x,up from 10.2x in Q1 of 2017.As a result,equity contributions as a percentage of total capital structure have reached near record highs (5.0x in 2017 vs.3.3x in 2012),as sponsors seek ways to differentiate themselves in the transaction process. -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 30-Dec-16 30-Jan-17 28-Feb-17 31-Mar-17 30-Apr-17 31-May-17 30-Jun-17Cumulative ReturnHF Longs HF Shorts S&P Long - Shorts Commonly-held hedge fund long positions continued to outperform the S&P 500 through the second quarter, while commonly-held shorts kept pace. This has led to continued positive alpha across US-focused long/short equity managers. 3.1% 4.3% 2.4% 1.5% 2.6%2.2% 0.9%0.6% 3.6% 0.4% -1.1% -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 underperformed domestic bonds. Global stocks/bonds performed well, boosted by expanding equity prices, lower rates, and weaker dollar. FX/rate-neutral hedge funds and long- dollar/short-rate 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 Top Hedge Fund Equity Longs vs Shorts (Goldman VIP) Sources: Hedge Fund Research, Factset 37.6% 23.8%23.3% 11.0%8.0% 3.8% -3.1%-10.0% 0.0% 10.0% 20.0% 30.0% 40.0% Airports Toll Roads Communications Electrical Transmission and Distribution Water Ports MLPs Listed Infrastructure (Year-to-Date Performance) Sector Index Source:Bloomberg 8 Quarter Year To Date 1 Year 2 Years 3 Years 5 Years 7 Years 10 Years Domestic Equity Indices Dow Jones Wilshire 5000 2.9 8.7 18.5 10.5 9.3 14.6 15.3 7.3 S&P 500 3.1 9.3 17.9 10.7 9.6 14.6 15.4 7.2 Russell 1000 Index 3.1 9.3 18.0 10.2 9.3 14.7 15.4 7.3 Russell 1000 Growth Index 4.7 14.0 20.4 11.4 11.1 15.3 16.5 8.9 Russell 1000 Value Index 1.3 4.7 15.5 9.0 7.4 13.9 14.3 5.6 Russell Midcap Index 2.7 8.0 16.5 8.2 7.7 14.7 15.3 7.7 Russell Midcap Growth Index 4.2 11.4 17.0 7.0 7.8 14.2 15.2 7.9 Russell Midcap Value Index 1.4 5.2 15.9 9.4 7.5 15.1 15.3 7.2 Russell 2000 Index 2.5 5.0 24.6 7.8 7.4 13.7 14.4 6.9 Russell 2000 Growth Index 4.4 10.0 24.4 5.4 7.6 14.0 15.2 7.8 Russell 2000 Value Index 0.7 0.5 24.9 10.3 7.0 13.4 13.5 5.9 International Equity Indices MSCI EAFE 6.1 13.8 20.3 3.9 1.1 8.7 7.9 1.0 MSCI EAFE Growth Index 7.5 16.7 15.7 4.9 2.8 9.2 8.6 2.1 MSCI EAFE Value Index 4.8 11.1 25.0 2.8 -0.6 8.1 7.1 -0.1 MSCI EAFE Small Cap 8.1 16.7 23.2 8.9 5.6 12.9 11.4 3.4 MSCI AC World Index 4.3 11.5 18.8 6.9 4.8 10.5 10.5 3.7 MSCI AC World ex US 5.8 14.1 20.5 4.0 0.8 7.2 6.7 1.1 MSCI Emerging Markets Index 6.3 18.4 23.7 4.3 1.1 4.0 3.9 1.9 Fixed Income Indices Blmbg. Barc. U.S. Aggregate 1.4 2.3 -0.3 2.8 2.5 2.2 3.2 4.5 Blmbg. Barc. Intermed. U.S. Government/Credit 0.9 1.7 -0.2 2.0 1.9 1.8 2.6 3.9 Blmbg. Barc. U.S. Long Government/Credit 4.4 6.0 -1.1 7.0 5.3 4.3 6.8 7.6 Blmbg. Barc. U.S. Corp: High Yield 2.2 4.9 12.7 7.0 4.5 6.9 8.2 7.7 BofA Merrill Lynch 3 Month U.S. T-Bill 0.2 0.3 0.5 0.3 0.2 0.2 0.2 0.6 Blmbg. Barc. U.S. TIPS -0.4 0.9 -0.6 1.8 0.6 0.3 2.9 4.3 Citigroup Non-U.S. World Government Bond 3.8 5.9 -5.0 4.0 -2.2 -0.8 1.4 3.2 JPM EMBI Global Diversified (external currency)2.2 6.2 6.0 7.9 5.4 5.7 7.1 7.4 JPM GBI-EM Global Diversified (local currency)3.6 10.4 6.4 4.2 -2.8 -0.7 1.9 4.0 Real Asset Indices Bloomberg Commodity Index Total Return -3.0 -5.3 -6.5 -10.0 -14.8 -9.3 -5.7 -6.5 Dow Jones Wilshire REIT 1.8 1.8 -1.7 9.9 8.3 9.3 13.3 5.6 Capital Markets Review Index Returns As of June 30, 2017 (Percentage Return) _________________________ Returns for periods greater than one year are annualized. 9 Executive Summary 10 Performance Summary - June 2017 Second quarter equity index returns were positive. Active domestic equity, international equity, and fixed income index funds performed in-line or outpaced their respective benchmarks during the quarter. Within the target date retirement funds, most options ranked near the median or better than their target date manager universe, with the exception of Vanguard Balanced Index, Target Retirement Income, and Target Retirement 2010. 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. Second quarter performance for active managers in the investment menu proved to be accretive. Vanguard International Growth beat its benchmark by 440 basis points, Vanguard US Growth outperformed its benchmark by 170 basis points, and Vanguard Windsor II beat its benchmark by 150 basis points. Target retirement date funds approximated their respective benchmarks over longer-term periods. Ranks were 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 3.1% during the second quarter. Growth-oriented sectors led returns with Healthcare being by far the strongest performing sector during the quarter, followed by strong performances by Industrials, Financials, and Information Technology. Energy and Telecommunications were the only two sectors to register a loss during the second quarter, continuing a trend from the first quarter. Short term Treasury yields rose during the quarter, as the FOMC raised the Fed Fund’s rate 25 bps in June. The Fed hinted on pausing increases in interest rates and have instead laid out the framework by which they expect to reduce their balance sheet over time. Treasuries returned 1.2% for the quarter. The U.S. yield curve flattened with yields rising at the short-end while longer-term rates fell. The yield curve spread between two-year and 30-year Treasuries fell 29 bps. Most developed market equity indices provided similar returns in the 4.0% to 6.0% range during the quarter, the exception being the S&P 500 at 3.1%. Emerging Markets were slightly higher, returning 6.3%, led by China, South Korea, and Taiwan. Growth continued to outperform value in the second quarter. Emerging Markets experienced the most pronounced performance differential by style, as well as the highest absolute return of the growth stocks. 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)3.1 (55)9.3 (49)17.7 (56)9.5 (27)14.5 (28)7.1 (37) S&P 500 3.1 (54)9.3 (48)17.9 (54)9.6 (25)14.6 (24)7.2 (34) IM U.S. Large Cap Equity 3.3 9.2 18.3 8.1 13.6 6.5 Vanguard US Growth (VWUSX)6.4 (28)15.9 (44)18.9 (66)10.1 (40)15.4 (22)8.1 (47) Russell 1000 Growth Index 4.7 (69)14.0 (65)20.4 (50)11.1 (20)15.3 (23)8.9 (21) IM U.S. Large Cap Growth Equity 5.3 15.3 20.4 9.7 14.2 8.0 Vanguard Windsor II (VWNFX)2.8 (15)7.8 (10)18.6 (41)6.9 (38)12.9 (53)5.5 (33) Russell 1000 Value Index 1.3 (73)4.7 (72)15.5 (74)7.4 (22)13.9 (19)5.6 (31) IM U.S. Large Cap Value Equity 2.0 5.6 17.3 6.6 13.0 4.9 Vanguard Mid-Cap Index (VIMSX)2.7 (50)9.1 (44)17.1 (50)7.9 (22)14.6 (21)7.3 (28) Vanguard Mid-Cap Index Fund Blended Benchmark 2.8 (49)9.2 (43)17.3 (48)8.1 (20)14.9 (17)7.5 (23) IM U.S. Mid Cap Equity 2.7 7.9 17.1 6.4 13.1 6.5 Vanguard Small-Cap Index (NAESX)1.9 (46)5.7 (26)19.0 (78)6.6 (47)14.0 (38)7.7 (23) Vanguard Small-Cap Index Fund Blended Benchmark 1.9 (46)5.8 (26)19.1 (77)6.8 (45)14.1 (36)7.8 (22) IM U.S. Small Cap Equity 1.7 2.5 22.6 6.5 13.2 6.0 International Equity Option Vanguard International Growth (VWIGX)10.2 (6)24.2 (5)28.3 (6)5.0 (13)10.7 (13)3.5 (15) MSCI AC World ex USA (Net)5.8 (67)14.1 (72)20.5 (44)0.8 (61)7.2 (59)1.1 (54) IM International Equity 6.4 16.0 19.7 1.4 7.7 1.3 Fixed Income Options Vanguard Total Bond Market Index (VBMFX)1.5 (67)2.3 (80)-0.5 (97)2.3 (58)2.0 (88)4.3 (80) Vanguard Total Bond Market Index Fund Benchmark 1.5 (63)2.4 (80)-0.3 (96)2.5 (49)2.2 (83)4.5 (75) IM U.S. Broad Market Core+ Fixed Income 1.6 2.9 1.9 2.4 2.9 5.1 Vanguard Retirement Savings Trust 0.4 0.8 1.8 1.8 1.8 2.6 Ryan 3 Yr GIC Master 0.4 0.8 1.5 1.3 1.2 2.4 Performance Summary Investment Options As of June 30, 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 June 30, 2017 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Equity/Fixed Income Blend Options Vanguard Balanced Index (VBINX)2.4 (69)6.3 (75)10.5 (76)6.4 (12)9.4 (38)6.4 (11) Vanguard Balanced Index Fund Benchmark 2.4 (69)6.3 (74)10.7 (73)6.5 (9)9.6 (30)6.5 (9) IM Mixed-Asset Target Alloc Growth 2.9 7.4 12.5 4.7 9.0 4.9 Vanguard Target Retirement Income (VTINX)1.8 (67)4.3 (69)5.2 (68)3.5 (17)4.9 (30)5.0 (9) Vanguard Target Income Composite Index (Net)1.8 (62)4.3 (69)5.4 (65)3.6 (12)5.1 (26)5.0 (8) IM Mixed-Asset Target Today 1.9 4.6 5.9 2.7 4.4 4.0 Vanguard Target Retirement 2010 (VTENX)1.8 (84)4.3 (89)5.4 (94)3.5 (43)5.8 (67)4.5 (13) Vanguard Target 2010 Composite Index (Net)1.8 (80)4.3 (89)5.6 (93)3.7 (35)6.0 (55)4.6 (12) IM Mixed-Asset Target 2010 (MF) Median 2.1 5.3 7.4 3.4 6.0 3.8 Vanguard Target Retirement 2015 (VTXVX)2.3 (43)5.8 (50)8.1 (66)4.2 (23)7.3 (33)4.9 (9) Vanguard Target 2015 Composite Index (Net)2.3 (40)5.7 (53)8.3 (60)4.4 (17)7.5 (25)4.9 (4) IM Mixed-Asset Target 2015 (MF) Median 2.3 5.8 8.6 3.7 6.9 4.2 Vanguard Target Retirement 2020 (VTWNX)2.8 (20)7.0 (19)10.3 (28)4.9 (4)8.4 (9)5.1 (3) Vanguard Target 2020 Composite Index (Net)2.8 (19)6.9 (23)10.5 (25)5.0 (2)8.6 (6)5.2 (1) IM Mixed-Asset Target 2020 (MF) Median 2.5 6.3 9.1 3.5 6.7 3.8 Vanguard Target Retirement 2025 (VTTVX)3.1 (30)7.8 (30)12.0 (29)5.2 (6)9.2 (18)5.1 (15) Vanguard Target 2025 Composite Index (Net)3.1 (29)7.8 (33)12.2 (26)5.4 (2)9.4 (12)5.2 (5) IM Mixed-Asset Target 2025 (MF) Median 2.9 7.3 11.1 4.1 8.0 4.4 Vanguard Target Retirement 2030 (VTHRX)3.3 (42)8.6 (37)13.4 (35)5.4 (12)9.9 (15)5.1 (15) Vanguard Target 2030 Composite Index (Net)3.3 (41)8.4 (45)13.7 (27)5.6 (8)10.1 (11)5.2 (11) IM Mixed-Asset Target 2030 (MF) Median 3.2 8.3 12.7 4.3 8.6 4.1 Vanguard Target Retirement 2035 (VTTHX)3.6 (51)9.3 (45)15.0 (39)5.7 (19)10.6 (18)5.3 (20) Vanguard Target 2035 Composite Index (Net)3.5 (57)9.1 (51)15.2 (35)5.9 (11)10.9 (9)5.4 (13) IM Mixed-Asset Target 2035 (MF) Median 3.6 9.2 14.6 4.9 9.4 4.6 Vanguard Target Retirement 2040 (VFORX)3.7 (47)10.0 (33)16.5 (29)5.8 (18)11.1 (12)5.5 (13) Vanguard Target 2040 Composite Index (Net)3.7 (47)9.8 (37)16.8 (23)6.1 (9)11.4 (6)5.6 (9) IM Mixed-Asset Target 2040 (MF) Median 3.7 9.6 15.6 4.9 9.8 4.2 _________________________ 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 June 30, 2017 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Equity/Fixed Income Blend Options (cont.) Vanguard Target Retirement 2045 (VTIVX)3.8 (50)10.3 (35)17.0 (35)6.0 (20)11.2 (14)5.5 (18) Vanguard Target 2045 Composite Index (Net)3.8 (52)10.1 (44)17.3 (28)6.2 (9)11.5 (7)5.7 (13) IM Mixed-Asset Target 2045 (MF) Median 3.8 10.0 16.4 5.3 10.3 4.6 Vanguard Target Retirement 2050 (VFIFX)3.8 (50)10.3 (39)17.0 (39)6.0 (19)11.2 (15)5.5 (15) Vanguard Target 2050 Composite Index (Net)3.8 (52)10.1 (47)17.3 (32)6.2 (9)11.5 (8)5.7 (11) IM Mixed-Asset Target 2050 (MF) Median 3.8 10.0 16.5 5.2 10.4 4.2 Vanguard Target Retirement 2055 (VFFVX)3.8 (56)10.2 (46)17.0 (45)5.9 (26)11.2 (27)N/A Vanguard Target 2055 Composite Index (Net)3.8 (56)10.1 (54)17.3 (39)6.2 (15)11.5 (14)N/A IM Mixed-Asset Target 2055+ (MF) Median 3.9 10.2 16.7 5.4 10.6 5.7 Vanguard Target Retirement 2060 (VTTSX)3.9 (53)10.3 (44)17.0 (45)5.9 (27)11.2 (26)N/A Vanguard Target 2060 Composite Index (Net)3.8 (56)10.1 (54)17.3 (39)6.2 (15)11.5 (14)N/A IM Mixed-Asset Target 2055+ (MF) Median 3.9 10.2 16.7 5.4 10.6 5.7 Money Market Option Vanguard Prime Money Market (VMMXX)0.2 0.4 0.7 0.3 0.2 0.7 BofA Merrill Lynch 3 Month U.S. T-Bill 0.2 0.3 0.5 0.2 0.2 0.6 _________________________ 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 June 30, 2017 Mana gers Va ngua rd S&P 500 Inde x (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 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 stylis 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 ++-+++-N/A Perfor mance s tatus ++++++++ Summary status ++++++++ 17 Pe rformance Summary Manager Compliance Checklist (Continued) As of June 30, 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 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 stylis 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 ++-+++++ Perfor mance s tatus ++++++++ Summary status ++++++++ 18 Pe rformance Summary Manager Compliance Checklist (Continued) As of June 30, 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 stylis 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 June 30, 2017 Investm ent Options Investm ent S tyl e Al loca ti on Perce ntage Dome stic Eq uity Funds Vangu ard 500 Index I nv US Large Cap Equit y -Core $ 7,975,779 13.8%$ (179,096)- 2.2% Vangu ard Windsor II Inv US Large Cap Equit y -Value $ 8,931,518 15.4%$ (146,754)- 1.6% Vangu ard US Growth Inv US Large Cap Equit y -Growth $ 4,858,282 8.4%$ 103,013 + 2.2% Vangu ard M id Cap Index Inv US Mid Cap Equit y -Core $ 3,161,330 5.5%$ 69,982 + 2.3% Vangu ard Small Cap Index Inv US Small Cap Equit y -Core $ 2,853,982 4.9%$ 260,826 + 10.1% $ 27,780,891 48.0%$ 107,971 + 0.4% International Equ ity Funds Vangu ard International Growth Int ernat ional Equit y $ 2,584,255 4.5%$ 334,813 + 14.9% $ 2,584,255 4.5%$ 334,813 + 14.9% Fixe d I ncome/Alternative Fu nds Vangu ard Tot al Bond M arket Index I nv Market Duration $ 2,486,574 4.3%$ (443,524)- 15.1% Vangu ard Retirement Savings Trust Short Duration $ 3,450,460 6.0%$ (245,701)- 6.6% Vangu ard Balanced Index Inv Balanced $ 5,058,502 8.7%$ 219,266 + 4.5% $ 10,995,536 19.0%$ (469,959)- 4.1% $ Change From Previous Qtr % C ha nge From Previous Qtr $ 10,995,536 19.0%$ (469,959)- 4.1% Cash Vangu ard Prime M oney Market Cash $ 1,293,756 2.2%$ (378,429)- 22.6% $ 1,293,756 2.2%$ (378,429)- 22.6% Ta rge t Date Fu nds Vangu ard Targe t Ret irement Income Inv Blend $ 490,460 0.8%$ 24,035 + 5.2% Vangu ard Targe t Ret irement 2010 Inv Blend $ 347,746 0.6%$ 15,005 + 4.5% Vangu ard Targe t Ret irement 2015 Inv Blend $ 863,889 1.5%$ 134,119 + 18.4% Vangu ard Targe t Ret irement 2020 Inv Blend $ 2,430,360 4.2%$ (4,882)- 0.2% Vangu ard Targe t Ret irement 2025 Inv Blend $ 3,909,641 6.8%$ 759,710 + 24.1% Vangu ard Targe t Ret irement 2030 Inv Blend $ 1,631,068 2.8%$ 302,144 + 22.7% Vangu ard Targe t Ret irement 2035 Inv Blend $ 1,618,296 2.8%$ 76,136 + 4.9% Vangu ard Targe t Ret irement 2040 Inv Blend $ 906,811 1.6%$ 27,441 + 3.1% Vangu ard Targe t Ret irement 2045 Inv Blend $ 1,010,834 1.7%$ 77,090 + 8.3% Vangu ard Targe t Ret irement 2050 Inv Blend $ 600,905 1.0%$ 73,702 + 14.0% Vangu ard Targe t Ret irement 2055 Inv Blend $ 124,775 0.2%$ 29,613 + 31.1% Vangu ard Targe t Ret irement 2060 Inv Blend $ 61,809 0.1%$ 10,662 + 20.8% 13,996,594$ 24.2%1,524,775$ + 12.2% Loan Fund Loan Fund Loan Fund $ 1,231,626 2.1%$ 65,451 + 5.6% TO TA L $ 57,882,658 100.0%$ 1,184,622 + 2.1% 21 Plan Summary Fee Comparison Summary As of June 30, 2017 Inv estment Option Expe nse Ratio Morningstar Cate gory Av erage Fe e Level Comp ar ison Group Median eVestment Al liance Univ erse Median Cate gory Fe e Level Comparison G roup eVestment Alliance Univ erse Va nguard 500 In dex 0.14 0.95 0.90 0.16 La rge Ble nd La rg e Cap No Load US Pa ssive Large Cap Equity Va nguard US Gro wt h 0.46 1.11 0.90 0.80 La rg e Gro wth La rg e Cap No Load US Large Cap Gro wth Va nguard Windsor 0.33 1.08 0.90 0.76 La rg e Value La rg e Cap No Load US Large Cap Value Va nguard Mid-Ca p Index 0.18 0.87 1.04 0.18 Mid Ble nd Mid Cap No Load US Passive Mid Cap Equity Va nguard Sma ll-Ca p Index 0.18 1.23 1.19 0.19 Small Ble nd Small Ca p No Load US Passive Sma ll Ca p Equity Va nguard International Gr owth 0.46 1.15 1.02 0.96 Fo reig n Large Gro wth Fo reig n Large Cap No Load ACWI ex-US Growt h Equity Va nguard Total Bo nd Marke t Index 0.15 0.74 0.65 0.46 Interme diate-Term Bo nd In terme diate-Term Bond No Load US Co re Fixe d Income Va nguard Retireme nt Saving Trust 0.53 N/A N/A 0.77 N/A N/A US St able Value Fixed Income Va nguard Balanced Index 0.19 0.95 0.91 0.77 Moderate Allo cation Moderate Allo cation No Load US Ba la nced Va nguard Target Retireme nt Income1 0.13 0.40 0.64 0.37 Re tireme 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 0.37 Target Date 2000-2010 Target Retire me nt 2000-2010 No Lo ad Life cycle/Target Date 2010 Va nguard Target Retireme nt 2015 0.14 0.29 0.75 0.38 Target Date 2011-2015 Target Retire me nt 2011-2015 No Lo ad Life cycle/Target Date 2015 Va nguard Target Retireme nt 2020 0.14 0.36 0.73 0.40 Target Date 2016-2020 Target Retire me nt 2016-2020 No Lo ad Life cycle/Target Date 2020 Va nguard Target Retireme nt 20251 0.14 0.33 0.75 0.41 Target Date 2021-2025 Target Retire me nt 2021-2025 No Lo ad Life cycle/Target Date 2025 Va nguard Target Retireme nt 2030 0.15 0.36 0.76 0.42 Target Date 2026-2030 Target Retire me 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 0.36 0.76 0.42 Target Date 2026-2030 Target Retire me nt 2026-2030 No Lo ad Life cycle/Target Date 2030 Va nguard Target Retireme nt 2035 0.15 0.34 0.79 0.42 Target Date 2031-2035 Target Retire me nt 3031-2035 No Lo ad Life cycle/Target Date 2035 Va nguard Target Retireme nt 2040 0.16 0.36 0.78 0.44 Target Date 2036-2040 Target Retire me nt 2036-2040 No Lo ad Life cycle/Target Date 2040 Va nguard Target Retireme nt 2045 0.16 0.34 0.78 0.44 Target Date 2041-2045 Target Retire me nt 2041-2045 No Lo ad Life cycle/Target Date 2045 Va nguard Target Retireme nt 2050 0.16 0.36 0.79 0.44 Target Date 2046-2050 Target Retire me nt 2046-2050 No Lo ad Life cycle/Target Date 2050 Va nguard Target Retireme nt 2055 0.16 0.34 0.75 0.45 Target Date 2051+Target Retireme nt 2051+ No Lo ad Life cycle/Target Date 2055 Va nguard Target Retireme nt 2060 0.16 0.34 0.75 0.42 Target Date 2051+Target Retireme nt 2051+ No Lo ad Life cycle/Target Date 2060 Va nguard Prime Money Marke t 0.16 0.35 N/A 0.20 Money Marke t Taxable N/A US Cas h Management Pavilio n Consulting Fee ($10,404 p er year) 22 Manager Evaluation 23 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard 500 Index Fund (VFINX)3.1 9.3 17.7 9.5 14.5 7.1 11.8 1.2 13.5 32.2 15.8 2.0 14.9 26.5 -37.0 5.4 S&P 500 3.1 9.3 17.9 9.6 14.6 7.2 12.0 1.4 13.7 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 IM U.S. Large Cap Equity 3.3 9.2 18.3 8.1 13.6 6.5 9.2 0.3 10.9 32.5 15.3 -1.4 13.4 28.2 -37.9 7.0 Vanguard 500 Index Fund (VFINX) Rank 55 49 56 27 28 37 32 43 14 55 43 19 35 59 40 60 Vanguard 500 Index Fund (VFINX)S&P 500 0 25 50 75 100Return Percentile Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.1 0.2 -0.1 -0.2 -0.3Return (%)9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard 500 Index Fund (VFINX)14.5 9.5 13.9 -0.1 1.0 1.5 0.0 -10.3 4.9 1.7 40y 10m S&P 500 14.6 9.5 14.0 0.0 1.0 1.5 0.0 N/A 4.9 0.0 40y 10m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 9.5 -1.5 0.0 28.3 40y 10m Manager Evaluation Vanguard 500 Index Fund (VFINX) vs. S&P 500 As of June 30, 2017 24 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)166,593 166,646 Median Mkt. Cap ($M)20,724 20,641 Price/Earnings ratio 21.6 21.6 Price/Book ratio 3.3 3.3 5 Yr. EPS Growth Rate (%)11.3 11.3 Current Yield (%)2.0 2.0 Debt to Equity 1.9 1.8 Number of Stocks 506 505 Beta (5 Years, Monthly)1.00 1.00 Consistency (5 Years, Monthly)1.67 1.00 Sharpe Ratio (5 Years, Monthly)1.46 1.48 Information Ratio (5 Years, Monthly)-10.28 - Up Market Capture (5 Years, Monthly)99.48 - Down Market Capture (5 Years, Monthly)100.51 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Apple Inc 3.6 3.6 0.0 0.7 Microsoft Corp 2.6 2.6 0.0 5.2 Amazon.com Inc 1.8 1.8 0.0 9.2 Facebook Inc 1.7 1.7 0.0 6.3 Johnson & Johnson 1.7 1.7 0.0 6.9 JPMorgan Chase & Co 1.6 1.6 0.0 4.6 Exxon Mobil Corp 1.6 1.6 0.0 -0.6 Berkshire Hathaway Inc 1.5 1.5 0.0 1.6 Google Inc (Class C)1.3 1.3 0.0 9.5 Alphabet Inc 1.3 1.3 0.0 9.7 % of Portfolio 18.7 18.7 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 55.9 30.9 13.0 0.3 55.9 30.9 13.0 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 2.1 2.9 2.8 22.3 10.3 14.5 14.5 6.1 9.0 12.3 3.2 2.1 2.9 2.8 22.3 10.3 14.5 14.5 6.0 9.0 12.3 Manager Evaluation Vanguard 500 Index Fund (VFINX) vs. S&P 500 As of June 30, 2017 25 Historical Performance Buy and Hold Attribution Risk and Return (Jul - 2012 - Jun - 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)2.8 7.8 18.6 6.9 12.9 5.5 13.4 -3.2 11.2 30.7 16.7 2.7 10.6 27.1 -36.7 2.2 Russell 1000 Value Index 1.3 4.7 15.5 7.4 13.9 5.6 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 2.0 5.6 17.3 6.6 13.0 4.9 14.1 -3.9 10.9 32.3 15.5 -2.5 12.9 24.0 -37.0 1.5 Vanguard Windsor II (VWNFX) Rank 15 10 41 38 53 33 63 34 44 78 34 11 83 28 47 43 Vanguard Windsor II (VWNFX)Russell 1000 Value Index 0 25 50 75 100Return Percentile Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 11.7 12.6 13.5 14.4 15.3 Return (%)6.9 7.2 7.5 7.8 8.1 8.4 8.7 9.0 Risk (Standard Deviation %) Russell 1000 Value Index Vanguard Windsor II (VWNFX) Average Active Weight 0.0 15.0 30.0-15.0-30.0 Utilities Telecommunication Services Real Estate Other Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary Cash -5.7 -0.5 -4.4 0.4 -0.2 6.8 -0.2 9.1 -9.3 -3.4 1.9 5.4 0.0 Allocation (Total: 0.5) 0.0 0.4 0.8-0.4-0.8 0.0 0.0 0.0 0.0 0.0 -0.1 0.0 0.4 -0.2 0.3 0.0 0.1 0.0 Stock (Total: 1.1) 0.0 0.6 1.2 1.8-0.6-1.2 0.0 0.0 0.0 0.0 0.2 0.7 0.3 -0.1 0.2 0.1 0.1 -0.5 0.0 Vanguard Windsor II (VWNFX) 0.0 0.4 0.8 1.2-0.4-0.8 0.0 0.1 0.0 0.0 0.2 0.6 0.3 0.3 0.0 0.4 0.0 -0.4 0.0 Manager Evaluation Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index As of June 30, 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)142,438 115,487 Median Mkt. Cap ($M)25,640 8,708 Price/Earnings ratio 18.7 18.6 Price/Book ratio 2.7 2.2 5 Yr. EPS Growth Rate (%)9.7 9.6 Current Yield (%)2.3 2.5 Debt to Equity 1.6 0.9 Number of Stocks 287 719 Beta (5 Years, Monthly)0.97 1.00 Consistency (5 Years, Monthly)46.67 1.00 Sharpe Ratio (5 Years, Monthly)1.29 1.37 Information Ratio (5 Years, Monthly)-0.43 - Up Market Capture (5 Years, Monthly)95.31 - Down Market Capture (5 Years, Monthly)98.51 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Microsoft Corp 3.2 0.0 3.2 5.2 Medtronic PLC 3.0 1.0 2.0 10.2 Citigroup Inc 2.9 1.6 1.3 12.1 Bank of America Corp 2.7 2.0 0.7 3.2 Pfizer Inc 2.7 1.7 1.0 -0.9 Oracle Corp 2.5 1.1 1.4 12.9 JPMorgan Chase & Co 2.4 2.7 -0.3 4.6 Wells Fargo & Co 2.4 2.1 0.3 0.2 Philip Morris International Inc 2.3 1.4 0.9 4.9 United Technologies Corp 2.3 0.8 1.5 9.4 % of Portfolio 26.4 14.4 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 47.2 27.8 20.4 4.6 0.0 56.2 33.2 8.4 2.2 0.0 Sector Weights (%) Vanguard Windsor II (VWNFX)Russell 1000 Value Index 0.0 6.0 12.0 18.0 24.0 30.0 Other Cash Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.5 0.0 0.5 2.8 0.3 3.7 16.9 10.1 20.4 17.8 8.5 10.5 8.0 0.0 0.0 6.1 3.1 5.0 2.7 8.0 8.7 14.2 25.5 10.5 9.2 6.9 Manager Evaluation Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index As of June 30, 2017 27 Historical Performance Buy and Hold Attribution Risk and Return (Jul - 2012 - Jun - 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)6.4 15.9 18.9 10.1 15.4 8.1 -0.7 8.5 13.1 35.5 18.4 -0.7 11.5 35.0 -37.8 10.1 Russell 1000 Growth Index 4.7 14.0 20.4 11.1 15.3 8.9 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 5.3 15.3 20.4 9.7 14.2 8.0 1.9 5.6 10.5 34.0 14.8 -1.8 15.2 35.1 -39.8 13.7 Vanguard US Growth (VWUSX) Rank 28 44 66 40 22 47 76 20 21 35 18 36 80 52 30 77 Vanguard US Growth (VWUSX)Russell 1000 Growth Index 0 25 50 75 100Return Percentile Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 15.2 15.3 15.4 15.5 Return (%)6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 10.5 Risk (Standard Deviation %) Russell 1000 Growth Index Vanguard US Growth (VWUSX) Average Active Weight 0.0 10.0 20.0-10.0-20.0 Utilities Telecommunication Services Real Estate Other Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary Cash 0.0 -1.0 1.2 0.0 -2.8 10.3 -1.5 -0.8 4.2 -0.2 -5.8 -3.6 0.0 Allocation (Total: 0.5) 0.0 0.2 0.4-0.2 0.0 0.1 0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.0 0.2 0.1 0.0 Stock (Total: 1.6) 0.0 1.0 2.0 3.0-1.0 0.0 0.0 0.1 0.0 0.0 1.4 0.0 -0.1 0.0 0.0 0.1 0.1 0.0 Vanguard US Growth (VWUSX) 0.0 0.6 1.2 1.8 2.4-0.6-1.2 0.0 0.1 0.1 0.0 0.0 1.5 0.0 -0.2 0.1 0.0 0.2 0.2 0.0 Manager Evaluation Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index As of June 30, 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)154,640 185,470 Median Mkt. Cap ($M)26,285 10,037 Price/Earnings ratio 28.3 25.7 Price/Book ratio 5.3 6.3 5 Yr. EPS Growth Rate (%)16.2 13.3 Current Yield (%)0.8 1.4 Debt to Equity 1.2 2.2 Number of Stocks 145 557 Beta (5 Years, Monthly)1.03 1.00 Consistency (5 Years, Monthly)61.67 1.00 Sharpe Ratio (5 Years, Monthly)1.37 1.47 Information Ratio (5 Years, Monthly)0.04 - Up Market Capture (5 Years, Monthly)103.01 - Down Market Capture (5 Years, Monthly)107.14 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Facebook Inc 4.3 3.1 1.2 6.3 Microsoft Corp 4.0 4.6 -0.6 5.2 Google Inc (Class C)3.8 2.4 1.4 9.5 Mastercard Inc 3.5 1.0 2.5 8.2 PayPal Holdings Inc 3.1 0.5 2.6 24.8 Visa Inc 3.1 1.5 1.6 5.7 Celgene Corp 2.9 0.9 2.0 4.4 Amazon.com Inc 2.7 3.4 -0.7 9.2 Apple Inc 2.6 6.6 -4.0 0.7 eBay Inc.2.5 0.0 2.5 4.0 % of Portfolio 32.5 24.0 Distribution of Market Capitalization (%) Vanguard US Growth (VWUSX)Russell 1000 Growth 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 52.8 28.1 17.2 1.9 0.0 41.9 33.9 22.4 1.8 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 4.0 0.7 44.8 9.3 14.5 7.4 0.2 2.8 16.3 0.0 0.0 0.0 1.0 2.6 3.9 36.2 12.3 13.7 3.4 0.8 7.6 18.6 Manager Evaluation Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index As of June 30, 2017 29 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)2.7 9.1 17.1 7.9 14.6 7.3 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 2.8 9.2 17.3 8.1 14.9 7.5 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 2.7 7.9 17.1 6.4 13.1 6.5 11.7 -2.5 8.2 35.0 15.2 -3.9 23.9 36.6 -41.5 9.9 Vanguard Mid-Cap Index Fund (VIMSX) Rank 50 44 50 22 21 28 55 38 8 51 44 35 36 35 54 67 Vanguard Mid-Cap Index Fund (VIMSX) Vanguard Mid-Cap Index Fund Blended Benchmark 0 25 50 75 100Return Percentile Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.2 -0.2 -0.4Return (%)9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Mid-Cap Index Fund (VIMSX)14.6 10.4 14.1 -0.2 1.0 1.4 0.1 -3.6 5.5 11.7 19y 1m Vanguard Mid-Cap Index Fund Blended Benchmark 14.9 10.4 14.3 0.0 1.0 1.4 0.0 N/A 5.5 0.0 19y 1m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 10.4 -1.4 0.0 28.3 19y 1m Manager Evaluation Vanguard Mid-Cap Index Fund (VIMSX) vs. Vanguard Mid-Cap Index Fund Blended Benchmark As of June 30, 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)13,925 13,924 Median Mkt. Cap ($M)10,923 11,005 Price/Earnings ratio 22.6 22.6 Price/Book ratio 2.9 2.9 5 Yr. EPS Growth Rate (%)10.5 10.5 Current Yield (%)1.6 1.6 Debt to Equity 1.2 1.2 Number of Stocks 348 339 Beta (5 Years, Monthly)1.00 1.00 Consistency (5 Years, Monthly)18.33 1.00 Sharpe Ratio (5 Years, Monthly)1.36 1.37 Information Ratio (5 Years, Monthly)-1.08 - Up Market Capture (5 Years, Monthly)99.46 - Down Market Capture (5 Years, Monthly)100.25 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Bard (C.R.) Inc 0.7 0.7 0.0 27.3 Edwards Lifesciences Corp 0.7 0.7 0.0 25.7 Fiserv Inc.0.7 0.7 0.0 6.1 Lam Research Corp 0.7 0.7 0.0 10.5 Newell Brands Inc 0.7 0.7 0.0 14.2 Roper Technologies Inc 0.7 0.7 0.0 12.3 Western Digital Corp 0.7 0.7 0.0 7.9 M&T Bank Corp 0.6 0.6 0.0 5.2 Incyte Corp 0.6 0.6 0.0 -5.8 Amphenol Corp 0.6 0.6 0.0 3.9 % of Portfolio 6.7 6.7 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 13.4 85.4 1.2 13.4 85.4 1.2 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 5.2 1.0 7.3 6.0 17.3 12.7 10.1 14.5 4.4 4.7 16.8 5.2 1.0 7.3 6.0 17.3 12.7 10.1 14.5 4.4 4.7 16.8 Manager Evaluation Vanguard Mid-Cap Index Fund (VIMSX) vs. CRSP U.S. Mid Cap TR Index As of June 30, 2017 31 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)1.9 5.7 19.0 6.6 14.0 7.7 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 1.9 5.8 19.1 6.8 14.1 7.8 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 1.7 2.5 22.6 6.5 13.2 6.0 22.6 -5.2 3.1 37.7 14.0 -4.2 25.5 29.9 -38.8 -0.9 Vanguard Small-Cap Index Fund (NAESX) Rank 46 26 78 47 38 23 74 39 11 51 18 38 29 32 38 42 Vanguard Small-Cap Index Fund (NAESX) Vanguard Small-Cap Index Fund Blended Benchmark 0 25 50 75 100Return Percentile Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.2 0.4 -0.2 -0.4Return (%)9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Small-Cap Index Fund (NAESX)14.0 12.1 13.7 -0.1 1.0 1.1 0.1 -2.4 6.8 18.3 49y 5m Vanguard Small-Cap Index Fund Blended Benchmark 14.1 12.1 13.9 0.0 1.0 1.1 0.0 N/A 6.8 0.0 49y 5m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 12.1 -1.1 0.0 33.3 49y 5m Manager Evaluation Vanguard Small-Cap Index Fund (NAESX) vs. Vanguard Small-Cap Index Fund Blended Benchmark As of June 30, 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)4,182 4,181 Median Mkt. Cap ($M)2,130 2,139 Price/Earnings ratio 21.8 21.8 Price/Book ratio 2.6 2.6 5 Yr. EPS Growth Rate (%)13.1 13.1 Current Yield (%)1.5 1.5 Debt to Equity -0.7 -0.7 Number of Stocks 1,433 1,418 Beta (5 Years, Monthly)1.00 1.00 Consistency (5 Years, Monthly)18.33 1.00 Sharpe Ratio (5 Years, Monthly)1.14 1.16 Information Ratio (5 Years, Monthly)-1.04 - Up Market Capture (5 Years, Monthly)99.13 - Down Market Capture (5 Years, Monthly)101.00 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Atmos Energy Corp 0.3 0.3 0.0 5.6 Teleflex Inc 0.3 0.3 0.0 7.4 Cadence Design Systems Inc 0.3 0.3 0.0 6.7 IDEX Corporation 0.3 0.3 0.0 21.3 CDW Corp 0.3 0.3 0.0 8.7 CoStar Group Inc 0.3 0.3 0.0 27.2 Packaging Corp Of America 0.3 0.3 0.0 22.3 Diamondback Energy Inc 0.3 0.3 0.0 -14.4 Broadridge Financial Solutions Inc 0.3 0.3 0.0 11.7 CBOE Holdings Inc 0.3 0.3 0.0 13.1 % 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 $20 Bil - $75 Bil $5 Bil - $20 Bil $0 - $5 Bil 0.0 32.6 67.4 0.0 32.5 67.5 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 24.0 Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 4.1 0.4 11.0 5.8 17.2 15.2 11.8 14.7 4.3 3.3 12.2 4.1 0.4 11.0 5.8 17.2 15.2 11.8 14.8 4.3 3.3 12.2 Manager Evaluation Vanguard Small-Cap Index (NAESX) vs. CRSP U.S. Small Cap TR Index As of June 30, 2017 33 Historical Performance Buy and Hold Attribution Risk and Return (Jul - 2012 - Jun - 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)10.2 24.2 28.3 5.0 10.7 3.5 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)5.8 14.1 20.5 0.8 7.2 1.1 4.5 -5.7 -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 IM International Equity 6.4 16.0 19.7 1.4 7.7 1.3 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 6 5 6 13 13 15 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 3.0 6.0 9.0 12.0 15.0 Return (%)8.1 9.0 9.9 10.8 11.7 12.6 13.5 14.4 15.3 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 -3.2 -0.8 -3.2 0.2 -3.6 13.5 -1.8 1.0 -5.8 -5.5 -3.4 12.5 Allocation (Total: 1.5) 0.0 0.6 1.2 1.8-0.6 0.0 0.0 0.0 0.0 0.2 1.0 0.0 0.0 0.0 0.5 0.0 0.0 Stock (Total: 2.9) 0.0 0.5 1.0 1.5 2.0 0.0 0.1 0.0 0.0 0.0 0.3 0.2 0.2 0.5 0.1 0.2 1.3 Vanguard Int. Growth (VWIGX) 0.0 0.5 1.0 1.5 2.0-0.5-1.0 0.0 0.2 0.0 0.0 0.2 1.2 0.1 0.2 0.5 0.5 0.2 1.3 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) As of June 30, 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 2.4 2.7 3.0-0.3-0.6-0.9 Pacific Other North America Middle East Frontier Markets Europe ex EMU EMU EM Latin America EM Europe + Middle East + Africa EM Asia 1.9 0.0 0.7 0.0 0.2 0.3 -0.1 0.2 0.1 1.1 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 -6.4 -0.2 2.7 1.5 1.4 -2.1 5.3 -1.7 -3.6 3.2 Allocation (Total: 0.6) 0.0 0.2 0.4-0.2-0.4 0.1 0.0 -0.1 0.0 0.2 0.0 0.1 0.1 0.1 0.1 Stock (Total: 3.8) 0.0 0.8 1.6 2.4 3.2-0.8-1.6 1.9 0.0 0.8 0.0 0.0 0.3 -0.2 0.1 0.0 1.0 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) 1 Quarter Ending June 30, 2017 35 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)92,694 59,774 Median Mkt. Cap ($M)23,155 7,768 Price/Earnings ratio 23.7 16.5 Price/Book ratio 3.8 2.2 5 Yr. EPS Growth Rate (%)15.0 6.4 Current Yield (%)1.5 2.9 Debt to Equity 1.0 1.2 Number of Stocks 116 1,866 Beta (5 Years, Monthly)1.08 1.00 Consistency (5 Years, Monthly)53.33 1.00 Sharpe Ratio (5 Years, Monthly)0.84 0.65 Information Ratio (5 Years, Monthly)0.86 - Up Market Capture (5 Years, Monthly)116.46 - Down Market Capture (5 Years, Monthly)98.91 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Tencent Holdings LTD 5.6 1.0 4.6 25.0 Alibaba Group Holding Ltd 5.1 0.8 4.3 30.7 AIA Group Ltd 3.2 0.4 2.8 17.3 Amazon.com Inc 2.9 0.0 2.9 9.2 ASML Holding NV 2.9 0.2 2.7 -1.2 Industria De Diseno Textil Inditex SA 2.9 0.2 2.7 9.5 Baidu Inc 2.8 0.2 2.6 3.7 Svenska Handelsbanken 2.0 0.1 1.9 3.9 Softbank Group Corp 1.9 0.3 1.6 14.8 Tesla Inc 1.8 0.0 1.8 29.9 % of Portfolio 31.1 3.2 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 Cash 24.6 38.7 30.6 6.0 0.0 32.8 39.8 25.0 2.4 0.0 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 Cash Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.2 0.0 0.0 3.6 0.0 4.4 23.8 10.6 9.2 17.8 1.0 6.4 22.9 0.0 0.0 3.1 4.4 3.2 7.6 10.8 12.0 8.1 23.3 6.3 9.9 11.3 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) As of June 30, 2017 36 Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) Australia 0.5 4.9 Hong Kong 9.3 4.9 Japan 11.7 16.3 New Zealand 0.0 0.1 Singapore 0.3 0.9 Pacific 21.7 27.2 Austria 0.0 0.2 Belgium 0.3 0.8 Finland 0.0 0.7 France 4.7 6.9 Germany 8.8 6.6 Ireland 0.3 0.4 Italy 2.9 1.4 Netherlands 3.9 2.7 Portugal 0.3 0.1 Spain 4.8 2.4 EMU 26.0 22.1 Denmark 2.9 1.3 Norway 0.7 0.4 Sweden 6.0 2.0 Switzerland 2.8 6.0 United Kingdom 7.3 12.5 Europe ex EMU 19.8 22.1 Canada 1.7 6.6 United States 8.3 0.2 Israel 1.9 0.5 Middle East 1.9 0.5 Developed Markets 79.4 78.7 Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) Brazil 0.9 1.6 Cayman Islands 0.0 0.0 Chile 0.0 0.3 Colombia 0.0 0.1 Mexico 0.4 0.9 Peru 0.0 0.0 Virgin Islands 0.0 0.0 EM Latin America 1.3 2.8 China 11.6 4.0 India 2.1 2.1 Indonesia 0.4 0.6 Korea 2.0 3.7 Malaysia 0.0 0.6 Philippines 0.0 0.3 Taiwan 1.2 3.0 Thailand 0.5 0.5 EM Asia 17.8 14.7 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 0.8 South Africa 0.0 1.6 Turkey 0.0 0.3 United Arab Emirates 0.0 0.2 EM Europe + Middle East + Africa 0.0 3.5 Emerging Markets 19.1 21.0 Frontier Markets 1.5 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 June 30, 2017 37 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)1.5 2.3 -0.5 2.3 2.0 4.3 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 1.5 2.4 -0.3 2.5 2.2 4.5 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 1.6 2.9 1.9 2.4 2.9 5.1 4.1 -0.2 5.3 -1.2 8.2 6.1 8.3 14.3 -3.0 5.5 Vanguard Total Bond Market Index Fund (VBMFX) Rank 67 80 97 58 88 80 86 24 39 82 95 19 85 100 11 25 Vanguard Total Bond Market Index Fund (VBMFX) Vanguard Total Bond Market Index Fund Benchmark 0 25 50 75 100Return Percentile Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.3 0.6 -0.3 -0.6Return (%)9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 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)2.0 3.0 1.9 -0.3 1.0 0.6 0.3 -0.8 1.9 40.0 30y 6m Vanguard Total Bond Market Index Fund Benchmark 2.2 2.9 2.1 0.0 1.0 0.7 0.0 N/A 1.8 0.0 30y 6m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 2.9 -0.7 0.0 38.3 30y 6m Manager Evaluation Vanguard Total Bond Market Index Fund (VBMFX) vs. Vanguard Total Bond Market Index Fund Benchmark As of June 30, 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 8.4 8.4 Avg. Quality AA AA+ Yield To Maturity (%)2.5 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 AAAAAABBB68.7 4.7 11.7 14.9 69.3 4.0 11.7 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 22.5 20.7 39.6 3.9 13.3 0.2 22.3 21.4 39.2 3.8 13.1 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-USEmergingOtherCMBS40.7 2.8 23.3 20.9 0.5 7.8 2.0 0.0 2.0 40.6 2.2 28.1 21.3 0.3 5.7 0.0 0.1 1.8 Manager Evaluation Vanguard Total Bond Market Index (VBMFX) vs. Blmbg. Barc. U.S. Aggregate Float Adjusted As of June 30, 2017 39 Historical Performance Comparative Performance and Rolling Return Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Quarterly Periodicity (Jul-2012 - Jun-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 0.8 1.8 1.8 1.8 2.6 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 0.8 1.5 1.3 1.2 2.4 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 0.8 0.9 0.8 0.9 2.1 1.4 0.3 0.6 0.2 2.3 1.2 3.2 6.0 -1.1 5.0 Vanguard Retirement Savings Trust Rank 46 49 21 6 12 25 30 1 6 4 49 9 55 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 6/17 0.0 0.6 1.2 1.8 2.4 3.0 Return (%)0.0 0.1 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 1.8 0.1 1.7 1.7 0.1 13.2 0.1 6.0 0.0 100.0 14y 6m Ryan 3 Yr GIC Master 1.2 0.1 1.1 0.0 1.0 19.3 0.0 N/A 0.0 0.0 14y 6m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 -0.9 0.9 N/A 0.1 -19.3 0.0 0.0 14y 6m Manager Evaluation Vanguard Retirement Savings Trust vs. Ryan 3 Yr GIC Master As of June 30, 2017 40 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)2.4 6.3 10.5 6.4 9.4 6.4 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 2.4 6.3 10.7 6.5 9.6 6.5 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 2.9 7.4 12.5 4.7 9.0 4.9 6.8 -1.2 6.4 19.9 13.0 -1.9 12.7 24.9 -30.7 6.4 Vanguard Balanced Index Fund (VBINX) Rank 69 75 76 12 38 11 23 17 11 72 80 3 43 84 7 55 Vanguard Balanced Index Fund (VBINX) Vanguard Balanced Index Fund Benchmark 0 25 50 75 100Return Percentile Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.4 0.8 -0.4 -0.8Return (%)9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Balanced Index Fund (VBINX)9.4 5.8 9.1 -0.1 1.0 1.6 0.1 -1.3 3.0 33.3 24y 7m Vanguard Balanced Index Fund Benchmark 9.6 5.9 9.2 0.0 1.0 1.6 0.0 N/A 2.9 0.0 24y 7m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 5.9 -1.6 0.0 23.3 24y 7m Manager Evaluation Vanguard Balanced Index Fund (VBINX) vs. Vanguard Balanced Index Fund Benchmark As of June 30, 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)136,812 136,904 Median Mkt. Cap ($M)1,218 1,038 Price/Earnings ratio 21.6 21.6 Price/Book ratio 3.2 3.2 5 Yr. EPS Growth Rate (%)11.4 11.4 Current Yield (%)1.9 1.9 Debt to Equity 1.5 1.5 Number of Stocks 3,359 3,598 Beta (5 Years, Monthly)0.59 1.00 Consistency (5 Years, Monthly)30.00 1.00 Sharpe Ratio (5 Years, Monthly)1.55 1.44 Information Ratio (5 Years, Monthly)-1.18 - Up Market Capture (5 Years, Monthly)62.88 - Down Market Capture (5 Years, Monthly)58.57 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Apple Inc 2.7 2.7 0.0 0.7 Microsoft Corp 2.1 2.1 0.0 5.2 Amazon.com Inc 1.6 1.6 0.0 9.2 Exxon Mobil Corp 1.4 1.4 0.0 -0.6 Johnson & Johnson 1.4 1.4 0.0 6.9 Facebook Inc 1.4 1.4 0.0 6.3 JPMorgan Chase & Co 1.3 1.3 0.0 4.6 Berkshire Hathaway Inc 1.2 0.8 0.4 1.6 Alphabet Inc 1.1 1.1 0.0 9.7 Google Inc (Class C)1.1 1.1 0.0 9.5 % of Portfolio 15.3 14.9 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 46.1 25.8 17.5 10.7 46.1 25.8 17.6 10.6 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 2.0 4.1 3.3 21.2 10.9 14.1 15.0 5.6 8.1 12.5 3.2 2.0 4.1 3.3 21.3 10.9 14.1 15.0 5.6 8.1 12.5 Manager Evaluation Vanguard Balanced Index Fund (VBINX) - Equity Holdings vs. CRSP U.S. Total Market TR Index As of June 30, 2017 42 Portfolio Characteristics Portfolio Benchmark Effective Duration 6.1 6.1 Avg. Maturity 8.4 8.4 Avg. Quality AA AA+ Yield To Maturity (%)2.5 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 AAAAAABBB68.7 4.7 11.7 14.9 69.3 3.9 11.6 15.2 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 22.5 20.7 39.6 3.9 13.3 1.4 21.8 20.9 38.8 4.0 13.1 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-USEmergingOtherCMBS40.7 2.8 23.3 20.9 0.5 7.8 2.0 0.0 2.0 42.7 0.0 27.9 21.2 2.5 5.0 0.0 0.7 0.0 Manager Evaluation Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings vs. Blmbg. Barc. U.S. Aggregate Float Adjusted As of June 30, 2017 43 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)1.8 4.3 5.2 3.5 4.9 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)1.8 4.3 5.4 3.6 5.1 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 1.9 4.6 5.9 2.7 4.4 4.0 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 67 69 68 17 30 9 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 4.6 4.8 5.0 5.2 5.4 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)4.9 3.5 4.7 -0.2 1.0 1.4 0.3 -0.7 1.9 41.7 13y 8m Vanguard Target Income Composite Index (Net)5.1 3.5 4.9 0.0 1.0 1.4 0.0 N/A 1.9 0.0 13y 8m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 3.5 -1.4 0.0 31.7 13y 8m Manager Evaluation Vanguard Target Retirement Income (VTINX) vs. Vanguard Target Income Composite Index (Net) As of June 30, 2017 44 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)1.8 4.3 5.4 3.5 5.8 4.5 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)1.8 4.3 5.6 3.7 6.0 4.6 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 2.1 5.3 7.4 3.4 6.0 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 84 89 94 43 67 13 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 5.6 5.8 6.0 6.2 6.4 Return (%)3.4 3.5 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)5.8 3.9 5.6 -0.1 1.0 1.4 0.3 -0.7 2.1 43.3 11y Vanguard Target 2010 Composite Index (Net)6.0 4.0 5.8 0.0 1.0 1.5 0.0 N/A 2.0 0.0 11y 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 4.0 -1.5 0.0 30.0 11y Manager Evaluation Vanguard Target Retirement 2010 (VTENX) vs. Vanguard Target 2010 Composite Index (Net) As of June 30, 2017 45 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)2.3 5.8 8.1 4.2 7.3 4.9 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)2.3 5.7 8.3 4.4 7.5 4.9 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 2.3 5.8 8.6 3.7 6.9 4.2 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 43 50 66 23 33 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 7.0 7.2 7.4 7.6 7.8 Return (%)4.2 4.3 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)7.3 5.0 7.0 -0.1 1.0 1.4 0.3 -0.6 2.6 45.0 13y 8m Vanguard Target 2015 Composite Index (Net)7.5 5.1 7.2 0.0 1.0 1.4 0.0 N/A 2.7 0.0 13y 8m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 5.1 -1.4 0.0 30.0 13y 8m Manager Evaluation Vanguard Target Retirement 2015 (VTXVX) vs. Vanguard Target 2015 Composite Index (Net) As of June 30, 2017 46 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)2.8 7.0 10.3 4.9 8.4 5.1 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)2.8 6.9 10.5 5.0 8.6 5.2 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 2.5 6.3 9.1 3.5 6.7 3.8 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 20 19 28 4 9 3 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 8.1 8.4 8.7 9.0 Return (%)4.8 4.9 5.0 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)8.4 5.9 8.1 -0.1 1.0 1.4 0.4 -0.6 3.1 36.7 11y Vanguard Target 2020 Composite Index (Net)8.6 6.0 8.3 0.0 1.0 1.4 0.0 N/A 3.1 0.0 11y 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 5.9 -1.4 0.0 28.3 11y Manager Evaluation Vanguard Target Retirement 2020 (VTWNX) vs. Vanguard Target 2020 Composite Index (Net) As of June 30, 2017 47 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)3.1 7.8 12.0 5.2 9.2 5.1 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)3.1 7.8 12.2 5.4 9.4 5.2 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 2.9 7.3 11.1 4.1 8.0 4.4 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 30 30 29 6 18 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 8.7 9.0 9.3 9.6 9.9 Return (%)5.3 5.4 5.5 5.6 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)9.2 6.6 8.9 -0.1 1.0 1.3 0.4 -0.5 3.5 43.3 13y 8m Vanguard Target 2025 Composite Index (Net)9.4 6.7 9.1 0.0 1.0 1.4 0.0 N/A 3.6 0.0 13y 8m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 6.6 -1.4 0.0 26.7 13y 8m Manager Evaluation Vanguard Target Retirement 2025 (VTTVX) vs. Vanguard Target 2025 Composite Index (Net) As of June 30, 2017 48 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)3.3 8.6 13.4 5.4 9.9 5.1 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)3.3 8.4 13.7 5.6 10.1 5.2 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 3.2 8.3 12.7 4.3 8.6 4.1 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 42 37 35 12 15 15 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 9.6 9.9 10.2 10.5 Return (%)5.9 6.0 6.1 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)9.9 7.3 9.6 -0.1 1.0 1.3 0.5 -0.5 3.9 43.3 11y Vanguard Target 2030 Composite Index (Net)10.1 7.3 9.8 0.0 1.0 1.3 0.0 N/A 4.0 0.0 11y 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 7.3 -1.3 0.0 28.3 11y Manager Evaluation Vanguard Target Retirement 2030 (VTHRX) vs. Vanguard Target 2030 Composite Index (Net) As of June 30, 2017 49 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)3.6 9.3 15.0 5.7 10.6 5.3 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)3.5 9.1 15.2 5.9 10.9 5.4 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 3.6 9.2 14.6 4.9 9.4 4.6 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 51 45 39 19 18 20 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 10.2 10.5 10.8 11.1 11.4 Return (%)6.5 6.6 6.7 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)10.6 8.0 10.3 -0.1 1.0 1.3 0.5 -0.5 4.4 45.0 13y 8m Vanguard Target 2035 Composite Index (Net)10.9 8.1 10.5 0.0 1.0 1.3 0.0 N/A 4.4 0.0 13y 8m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 8.1 -1.3 0.0 30.0 13y 8m Manager Evaluation Vanguard Target Retirement 2035 (VTTHX) vs. Vanguard Target 2035 Composite Index (Net) As of June 30, 2017 50 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)3.7 10.0 16.5 5.8 11.1 5.5 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)3.7 9.8 16.8 6.1 11.4 5.6 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 3.7 9.6 15.6 4.9 9.8 4.2 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 47 33 29 18 12 13 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 10.5 10.8 11.1 11.4 11.7 12.0 Return (%)7.0 7.1 7.2 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)11.1 8.6 10.8 -0.1 1.0 1.3 0.5 -0.5 4.7 41.7 11y Vanguard Target 2040 Composite Index (Net)11.4 8.7 11.1 0.0 1.0 1.3 0.0 N/A 4.8 0.0 11y 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 8.7 -1.3 0.0 30.0 11y Manager Evaluation Vanguard Target Retirement 2040 (VFORX) vs. Vanguard Target 2040 Composite Index (Net) As of June 30, 2017 51 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)3.8 10.3 17.0 6.0 11.2 5.5 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)3.8 10.1 17.3 6.2 11.5 5.7 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 3.8 10.0 16.4 5.3 10.3 4.6 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 50 35 35 20 14 18 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 10.8 11.1 11.4 11.7 12.0 Return (%)7.0 7.1 7.2 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)11.2 8.6 10.9 -0.1 1.0 1.3 0.5 -0.5 4.7 46.7 13y 8m Vanguard Target 2045 Composite Index (Net)11.5 8.7 11.1 0.0 1.0 1.3 0.0 N/A 4.8 0.0 13y 8m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 8.7 -1.3 0.0 30.0 13y 8m Manager Evaluation Vanguard Target Retirement 2045 (VTIVX) vs. Vanguard Target 2045 Composite Index (Net) As of June 30, 2017 52 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)3.8 10.3 17.0 6.0 11.2 5.5 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)3.8 10.1 17.3 6.2 11.5 5.7 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 3.8 10.0 16.5 5.2 10.4 4.2 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 50 39 39 19 15 15 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 10.8 11.1 11.4 11.7 12.0 Return (%)7.0 7.1 7.2 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)11.2 8.6 10.9 -0.1 1.0 1.3 0.5 -0.5 4.8 45.0 11y Vanguard Target 2050 Composite Index (Net)11.5 8.7 11.1 0.0 1.0 1.3 0.0 N/A 4.8 0.0 11y 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 8.7 -1.3 0.0 30.0 11y Manager Evaluation Vanguard Target Retirement 2050 (VFIFX) vs. Vanguard Target 2050 Composite Index (Net) As of June 30, 2017 53 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)3.8 10.2 17.0 5.9 11.2 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)3.8 10.1 17.3 6.2 11.5 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+3.9 10.2 16.7 5.4 10.6 5.7 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 56 46 45 26 27 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 10.5 10.8 11.1 11.4 11.7 12.0 Return (%)7.0 7.1 7.2 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)11.2 8.6 10.8 -0.1 1.0 1.3 0.5 -0.5 4.8 43.3 6y 9m Vanguard Target 2055 Composite Index (Net)11.5 8.7 11.1 0.0 1.0 1.3 0.0 N/A 4.8 0.0 6y 9m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 8.7 -1.3 0.0 30.0 6y 9m Manager Evaluation Vanguard Target Retirement 2055 (VFFVX) vs. Vanguard Target 2055 Composite Index (Net) As of June 30, 2017 54 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Jul-2012 - Jun-2017) Historical Statistics - Monthly Periodicity (Jul-2012 - Jun-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)3.9 10.3 17.0 5.9 11.2 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)3.8 10.1 17.3 6.2 11.5 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+3.9 10.2 16.7 5.4 10.6 5.7 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 53 44 45 27 26 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 Rank9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 9/16 6/17 10.8 11.1 11.4 11.7 12.0 Return (%)7.0 7.1 7.2 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)11.2 8.6 10.9 -0.1 1.0 1.3 0.5 -0.5 4.8 46.7 5y 5m Vanguard Target 2060 Composite Index (Net)11.5 8.7 11.1 0.0 1.0 1.3 0.0 N/A 4.8 0.0 5y 5m 90 Day U.S. Treasury Bill 0.1 0.1 0.0 0.1 0.0 N/A 8.7 -1.3 0.0 30.0 5y 5m Manager Evaluation Vanguard Target Retirement 2060 (VTTSX) vs. Vanguard Target 2060 Composite Index (Net) As of June 30, 2017 55 Manager Evaluation Ta rget-Date Funds Asset Allocation As of June 30, 2017 U.S.Equi ty 18.0%26.4%33.5%38.4%42.9%47.5%52.0%54.1%54.0%54.1%54.0% Va nguard Total St ock M arke t Index Fu nd 18.0%26.4%33.5%38.4%42.9%47.5%52.0%54.1%54.0%54.1%54.0% Non-U.S . Equ ity 12.0%17.7%22.3%25.7%28.7%31.7%34.7%36.0%36.0%36.0%36.0% Va nguard Total In ternational St ock In dex F und 12.0%17.7%22.3%25.7%28.7%31.7%34.7%36.0%36.0%36.0%36.0% Fi xe d In come 70.0%55.9%44.2%35.9%28.4%20.8%13.3%9.9%10.0%9.9%10.0% Va nguard Total Bo nd Marke t II In dex F und 37.4%31.8%28.8%25.3%20.0%14.7%9.4%7.0%7.1%7.0%7.0% Va nguard Total In ternational Bo nd Stock In dex F und 15.8%13.4%12.1%10.6%8.4%6.1%3.9%2.9%2.9%2.9%3.0% Va nguard In fla tion-Pro tected Securit ie s Fund 16.8%10.7%3.3%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% Tar get Date 2030 Tar get Date 2035 Tar get Date 2040 Tar get Date 2055 Tar get Date 2060Vanguard C ompone nt 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 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