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HomeMy Public PortalAbout2017 3rd Quarter ReportPerformance Review Metropolitan St. Louis Sewer District Defined Contribution Plan 3rd 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 56 Table Of Contents Capital Markets Review 1 Capital Markets Review Summary 5.3 4.5 5.7 5.4 6.9 7.9 3.5 1.8 0.8 0.7 2.0 0.3 1.1 2.5 2.2 1.2 0.8 18.7 18.6 20.7 19.1 20.2 22.5 11.0 -1.3 0.1 -1.3 9.1 0.6 2.6 -0.3 7.4 4.6 2.2 -5 0 5 10 15 20 25 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)AlternativesAmid Noise,the Trend Persists During the third quarter,geopolitical events and natural disasters dominated the headlines,although financial markets proved resilient,focusing on improving economic data.Risk assets rose.Additionally,cyclical risks remain low across developed markets,which we believe should allow existing trends to remain intact. While natural disasters may shock near-term economic data,political actions in the U.S.and Europe have the potential to alter fundamentals.In the U.S.,tax cuts could produce a near-term benefit but escalating tensions with North Korea could challenge trade with China,a close ally to Pyongyang.In Europe,Brexit negotiations continue to loom,and while Angela Merkel won reelection,her party’s power decreased,a blow to pro-European Union policies. Strengthening corporate profits and economic data continue to bode well for global growth prospects.Consumer sentiment and corporate expectations have been particularly positive,capturing the rebound beginning in the middle of 2016,which has translated into hard data in 2017. Core inflation remains below target in most developed markets,but economic growth and advancing labor markets have encouraged central bank policy makers to publicly discuss the prospects for normalization.In September,the U.S.once again led the global central banks in announcing the reduction in its balance sheet,scheduled to be begin in October.Outside the U.S.,several central banks are contemplating or amending forward guidance.The European Central Bank,in particular,warrants monitoring,as missteps have the potential to repeat 2011’s mistakes. Domestically,the U.S.yield curve declined and flattened further,amid the Federal Open Market Committee (“FOMC”)announcement,which marginally detracted from intermediate duration bond performance.Within credit,improving economic conditions led to spread compression for most sectors,driving outperformance relative to similar duration Treasuries. Emerging market equity performance dominated in the third quarter and year-to-date (+27.8%).Developed equity markets also surged during the quarter and year-to-date periods,as widespread growth permeated economic fundamentals and expectations. After two down quarters,commodity prices turned up,led by industrial metals and energy sub-indices.Income-oriented strategies,like infrastructure,continued to generate positive performance;although,a flattening yield curve likely held back performance. 2 -1% 1% 3% 5% 7% 9% 11% -2100 -1600 -1100 -600 -100 400 900 Dec-00Aug-01Apr-02Dec-02Aug-03Apr-04Dec-04Aug-05Apr-06Dec-06Aug-07Apr-08Dec-08Aug-09Apr-10Dec-10Aug-11Apr-12Dec-12Aug-13Apr-14Dec-14Aug-15Apr-16Dec-16Y-O-Y % Change Real WagesJob Openings Less Hires (000’)Wage Growth Stagnant Jobs (lhs)Wages (rhs) 0.6 0.8 1.0 1.2 1.4 1.6 1.8 5% 10% 15% 20% 25% 30% 35% 40% 45%Jul-05Jan-06Jul-06Jan-07Jul-07Jan-08Jul-08Jan-09Jul-09Jan-10Jul-10Jan-11Jul-11Jan-12Jul-12Jan-13Jul-13Jan-14Jul-14Jan-15Jul-15Jan-16Jul-16Jan-17Jul-17Implied Basis Point VolatilityImplied Equity VolatilityImplied Volatilities at Post Crisis Lows S&P 500 Index Volatility (lhs)10-YR Rate Volatility (rhs) Capital Markets Review Asset Class Outlook Equities Equity markets continued their strong performance,reflecting the confluence of improving growth,ongoing financial accommodation,and constrained inflation.These factors have contributed to a world in which profit margins and earnings estimates rise, on the further strengthening in underlying fundamentals.These conditions have given rise to extremely steady markets,with the S&P 500 experiencing the lowest realized volatility in over 30 years.Option markets have reflected the current stability as implied volatility or option premiums plumbed to historically low levels.While some suggest these low levels of implied volatility reflect complacency among investors,we view them as the artifact of simple math.Specifically,asset prices move in response to changes in the present value of expected future cash flows.With growth steady and positive,there has been very little volatility in expected future cash flows,and with interest rates and inflation steady,there has been very little volatility in the discounting of future cash flows.The end result is low realized volatility.While these conditions will not last forever,current levels of implied volatility suggest persistence over the coming quarters. Fixed Income The FOMC held interest rates steady over the quarter,choosing instead to begin the process of balance sheet reduction.In addition to announcing the balance sheet reduction,Federal Reserve (“Fed”)officials revealed in their Summary of Economic Projections that they lowered their expectation for the long-run neutral funds rate to 2.8%and do not anticipate core inflation breaching the 2%target until 2020.All of these factors suggest the Fed will continue its patient process of interest rate normalization with one more rate hike this year and possibly as few as three next year.This patient approach to policy refinement also is being pursued by central banks in other developed markets and has allowed fixed income markets to duplicate the low volatility witnessed in equity markets.Fixed income returns are largely being driven by the income streams associated with the various sectors.In addition to accommodative monetary policy, yields on longer maturity bonds continue to receive support from structural and demographic factors that are likely to remain in place for the foreseeable future.While the biggest risk to the current environment is a policy misstep that would give way to a spike in interest rates,the catalyst for such an event is further in the future so we continue to view high quality duration as source of diversification and protection against unanticipated economic events. Real Assets Core inflation continues to remain constrained and below the 2%target in most developed markets,circumstances that are likely to persist for some time.One example holding back inflation is the absence of wage growth despite the increase in labor demand,as reflected by unfilled job openings.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.We maintain a cautious view on REITs,due to historical correlations with long duration instruments. Source: Bloomberg Source: Bloomberg Source: FactSet as of October 6, 2017 87 74 62 87 99 105 111 119 119 120 131 146 160 40 60 80 100 120 140 160 180 CY2007CY2008CY2009CY2010CY2011CY2012CY2013CY2014CY2015CY2016CY2017CY2018CY2019Actual Estimates S&P 500 Calendar Year Bottom-up EPS Actuals & Estimates 3 460 465 470 475 480 485 490 495 10,000 10,100 10,200 10,300 10,400 10,500 10,600 10,700 10,800 10,900 11,000 Jun-9Jun-16Jun-23Jun-30Jul-7Jul-14Jul-21Jul-28Aug-4Aug-11Aug-18Aug-25Sep-1Sep-8Sep-15Sep-22Sep-29Oct-6PricePrice2017 Spanish Exchange Index - IBEX (lhs) MSCI ACWI (rhs) Capital Markets Review Key Market Risks Fixed Income Equities FinancialStressesValuationsCyclicalCurrent Risk Levels Source: Bloomberg Source: Bloomberg, FactSet, Recession Alert, & Pavilion AnalysisLowHigh Cyclical Risks Remain Low While Policy and Geopolitical Risks Persist Normalization of Monetary Policy:Since the financial crisis began 10 years ago,central bankers have deployed multiple policy mechanisms in an effort to enhance financial conditions.With improvements in global growth,policy makers have begun the process of plotting the removal of current levels of accommodation.Given the unique nature of the many policy measures undertaken during the crisis,the playbook for normalization has never been implemented,providing much uncertainty.Central bankers will be challenged by not only the timing but the pace of policy adjustments. Ongoing Threat from European Challenges: −The results of German elections may be felt for some time.Victories by the right will likely force Angela Merkel to form a coalition that will make strengthening the E.U. more difficult.Challenges include providing permanent debt relief for Greece. −The U.K.faces numerous headwinds.Rising inflation may force the hand of the Bank of England,raising interest rates prematurely.This comes at the time of falling real wages,as well as disruptions resulting from the lack of progress in Brexit negotiations. Additionally,there are growing concerns that burgeoning consumer debt may pose a threat to the financial system. −The Catalonian independence movement,and the resulting response from the Spanish government,is one more reminder of the simmering social unrest in Europe.While the impact of these events has largely been limited to Spanish markets,the risk of similar movements or contagion remains. Policy Misstep:The current administration faces many choices in terms of re-negotiating trade policy,the appointment of new Federal Reserve leadership,as well as efforts to revamp tax policy.Unexpected outcomes among any of these decisions presents the possibility for market disruptions. Economic Policy Uncertainty Remains Elevated in the European Union (1,000) (500) - 500 1,000 1,500 2,000 2,500 Sep-93Sep-94Sep-95Sep-96Sep-97Sep-98Sep-99Sep-00Sep-01Sep-02Sep-03Sep-04Sep-05Sep-06Sep-07Sep-08Sep-09Sep-10Sep-11Sep-12Sep-13Sep-14Sep-15Sep-16Sep-17Monthly Change in Millions Rapid Growth in U.K. Consumer Credit Raises Concerns Source: Bloomberg 4 32% 33% 34% 35% 36% 37% 38%Sep 1987Sep 1989Sep 1991Sep 1993Sep 1995Sep 1997Sep 1999Sep 2001Sep 2003Sep 2005Sep 2007Sep 2009Sep 2011Sep 2013Sep 2015Sep 201775 80 85 90 95 100 105 9/30/20133/31/20149/30/20143/31/20159/30/20153/31/20169/30/20163/31/20179/30/2017U.S. Dollar Spot Index-3 -2 -1 0 1 2 3 4 5 6 7 19901992199419961998200020022004200620082010201220142016PercentCPICore CPI Capital Markets Review Economy Hurricanes and Future Fed Actions Drive Sentiment Three major hurricanes battered the U.S.mainland and territories,causing property damage in excess of $100 billion.Florida saw damage to its electric grid and housing,Texas saw extensive housing and energy infrastructure damage,mainly due to flooding,while Puerto Rico absorbed two hurricanes that destroyed housing and infrastructure.The storms were a drag on third quarter GDP,as unemployment claims rose and economic activity slowed in these areas,while higher gasoline prices hit nationwide.Insurance companies likely will pass costs on to policyholders across the nation. All eyes on the Fed was a common occurrence during the quarter,as investors attempted to divine the FOMC’s course toward policy normalization.In the end,it is likely that the Fed will begin to slowly liquidate its balance sheet in Q4,with the next interest rate hike likely in December,and the possibility of additional rate hikes in 2018.The U.S.dollar’s slide eased in late September after expectations of a rate hike rose and the balance sheet liquidation was announced. Inflation and employment continued to perplex policymakers,as the accepted theory held that falling unemployment will lead to higher inflation.Currently,inflation remains below 2%and the unemployment rate,at 4.2%,is below the historical average.Employers have more open positions than seen in years,and the non-working labor force is diminishing, suggesting that more workers need to be employed before wage pressures exert further inflationary influence. Source: Federal Reserve Source: Bloomberg U.S. InflationU.S. Dollar Slide Eased at Quarter-End Source: Bureau of Labor Statistics Working Age Civilians Not in Labor Force 5 5.2%4.5%4.8%6.2%5.4% 7.9% 14.7% 2.7% 0.8% 3.0%3.8% 22.9% 17.3% 14.2% 16.0% 21.1%20.0% 27.8% 43.2% 32.2% 22.6%24.1% 12.1% 26.6% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% MSCI ACWI S&P 500 MSCI World MSCI ACWI x US MSCI EAFE MSCI EM China South Korea Taiwan India South Africa Brazil 3Q YTD Capital Markets Review Equities Source: FactSet, MSCISource: FactSet, S&P Third Quarter and YTD S&P 500 Sector Returns -1.3% -1.3% 0.8% 0.9% 3.7% 4.2% 4.5% 5.2% 6.0% 6.8% 6.8% 8.6% 6.6% 6.6% 11.9% 7.4% 20.3% 14.1% 14.2% 12.5% 15.8% -4.7% -6.6% 27.4% -10.0%-5.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0% Cons Staples Utilities Cons Disc Real Estate Healthcare Industrials S&P 500 Financials Materials Telecom Energy Info Tech 3Q YTD Third Quarter and YTD World and Emerging Market Equity Returns 3.1% 2.1% 5.1% 5.9%5.5%5.9% 5.3% 6.2% 4.9% 10.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% U.S. Large Cap U.S. Mid Cap U.S. Small Cap Int'l Developed Emerging Mkts Value Growth Source: FactSet, MSCI, Russell Growth Continued to Outperformed Value in U.S. and Emerging Markets Growth in U.S.and Emerging Markets Led the Way in the Third Quarter The S&P 500 Index returned +4.5%during the third quarter,bringing the year-to-date return to +14.2%.Information Technology was the strongest contributor to performance for both the quarter and year-to-date periods.Energy and Telecom were the next best performing sectors during the quarter but remain the only sectors with negative returns year-to-date.Consumer Staples and Utilities were the only sectors to post a loss during the third quarter. Most developed market equity indices provided returns in the +4%to +6%range during the third quarter.Emerging Market equities were slightly higher,returning +7.9%,led by Brazil and China.year-to-date,the key regional indices all provided double digit returns, with the foreign markets benefitting from strong local market returns as well as currency appreciation vs.the U.S.dollar. Growth continued to outperform value in the third quarter within the U.S.and Emerging Markets.Emerging Markets again experienced the most pronounced style differential,as well as the highest absolute return of Growth stocks.International Developed markets, however,saw value edge out growth in the third quarter,a reversal from the first half of the year. 6 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 0 5 10 15 20 25 30Yield to MaturityMaturity (Years) 9/30/2016 12/30/2016 9/30/2017 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) FOMC Undeterred by Inflation, Storm Effects Following its September meeting,the Federal Reserve (“Fed”)announced its intention to begin balance sheet normalization in October with maturity roll-offs.The Fed also indicated it plans to raise the federal funds rate one additional time in 2017,striking a slightly more hawkish tone than expected.All fixed income spread sectors posted positive duration-adjusted excess returns for the quarter. For the third consecutive quarter,U.S.Treasuries generated positive absolute returns (+0.4%).The yield on the ten-year U.S.Treasury fell as low as 2.04%in early September before rebounding sharply to finish the quarter at 2.33%.The yield curve flattened as the spread between 2-and 30-year Treasuries fell 8 basis points (bps).TIPS improved, returning +0.9%on rising inflation expectations led by recent wage growth data. Investment grade credit returned +1.3%,outperforming other higher quality sectors.The OAS of the U.S.Credit Index ended the quarter at +96 bps,a level not seen since June 2014.High yield bonds returned +2.0%,while spreads ended the quarter 17 bps tighter at 347 bps.Spread tightening was supported by a rebound in oil prices and the prospect of fiscal stimulus via tax reform.Strong overseas demand for U.S.spread product has remained a technical tailwind for the asset class. Agency MBS generated a +0.4%total return,bringing the YTD return into positive territory.Spreads ended the quarter 10 bps tighter at 22 bps,taking the Fed’s well- telegraphed taper announcement in stride.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 Credit Valuations (10-Yr Range) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Option-Adjusted Spread (bps) 2010 2011 2012 2013 2014 2015 2016 1Q17 2Q17 3Q17 Aggregate 171 -114 226 93 10 -53 138 11 30 41 Agency 77 -25 166 1 10 -133 121 60 20 45 MBS 225 -106 91 98 40 -5 -11 -17 -4 47 ABS 169 52 246 24 53 44 95 22 32 14 CMBS 1501 47 841 97 108 -28 236 8 34 34 Credit 192 -322 693 226 -18 -169 442 47 99 89 High Yield 974 -240 1394 923 -112 -577 1573 214 146 160 EMD (USD)508 -537 1503 -32 -120 3 880 259 72 186 7 Capital Markets Review Alternative Investments Global Alternatives Rise with Risk Assets Hedge Funds:Hedge funds posted moderate gains during a robust quarter for equity markets.Long/short equity strategies were off to a strong start in the beginning weeks of the quarter,with technology,financials,and cable/media names playing prominent roles on the long side of portfolios,while short positions skewed toward consumer retail.Hedge fund alpha was strong across value and growth names,with the average fund outperforming its beta to equity markets.In fixed income,distressed managers registered weaker than expected performance due to prominent exposure to Puerto Rico,as well as select coal and industrials names.On the positive side,oil and gas companies undergoing restructurings rallied significantly in September.Global high yield and non-agency RMBS and CMBS positions benefitted corporate credit and asset-backed managers.Macro managers were hurt by currency positioning –many were positioned with a long bias to the U.S.dollar and a short bias to interest rates.Underlying volatility levels have stayed low for some time,which does not help macro.Event-driven managers benefited from a steady pace of new deals, with most deals closing as expected. Real Assets:In a lower yield environment,real assets (infrastructure,MLPs,and REITs) continue to provide diversifying earning streams that are competitive with traditional equities and fixed income.During the quarter,listed infrastructure was positively impacted by the toll road and port sectors.Toll roads moved higher based on expectations of further industry consolidation in Europe,and the port sector benefited from record import volumes during July and August,as retailers prepare for the holiday season. Private Capital Markets:Fundraising remained strong through the third quarter of 2017,as 267 funds closed with commitments totaling $150 billion.Aggregate private equity capital raised year-to-date 2017 has increased to $338 billion compared to $286 billion raised in same period of 2016.If fundraising momentum continues,2017 may well be within reach of the all-time annual private equity fundraising record of $415 billion set in 2007.In terms of multiples,the median EV/EBITDA multiple jumped from 9.7x in the first quarter to 10.4x in the second quarter,but has stayed at more-or-less 10x earnings for the last 18 months. -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24%Cumulative ReturnHF Longs HF Shorts S&P Long - Shorts Commonly-held hedge fund long positions continued to outperform the S&P 500 through the third quarter, while commonly-held shorts posted modestly negative alpha, particularly in September. 4.5% 5.3% 4.2% 0.9% 1.8%2.0%2.0% 1.3% 3.9% 1.7% 0.6% 0% 5% 10%L/S equity managers generated strong alpha, outpacing their beta to equity markets and nearly matching returns. This was despite global equity prices being boosted by a falling dollar, as many funds are currency hedged. Relative value fixed income and distressed managers outpaced domestic bonds, but distressed modestly underperformed HY. Global stocks/bonds performed well mostly due to FX, while FX-neutral hedge funds and macro funds with a long dollar bias lagged. *Asset-weighted is used instead of fund-weighted, as it is available and more indicative of the universe. Sources: Bloomberg, Goldman Sachs Hedge Funds vs Long-Only: Total Returns 2017 Q3 Top Hedge Fund Equity Longs vs Shorts (Goldman VIP) Sources: Hedge Fund Research, Factset 7.5% 5.5% 4.5% 3.9%3.8% 2.5%2.3%2.3%2.1% 0.0% 2.0% 4.0% 6.0% 8.0% MLPs ILS Infrastructure U.S. REITs Global REITs DM Equity U.S. 10-year EM Equity U.S. Equity Asset Class Yields Source: Alerian, Elementum, FactSet, Federal Reserve 8 Quarter Year To Date 1 Year 2 Years 3 Years 5 Years 7 Years 10 Years Domestic Equity Indices Dow Jones Wilshire 5000 4.6 13.7 18.9 17.1 11.0 14.3 14.3 7.6 S&P 500 4.5 14.2 18.6 17.0 10.8 14.2 14.4 7.4 Russell 1000 Index 4.5 14.2 18.5 16.7 10.6 14.3 14.4 7.5 Russell 1000 Growth Index 5.9 20.7 21.9 17.8 12.7 15.3 15.4 9.1 Russell 1000 Value Index 3.1 7.9 15.1 15.7 8.5 13.2 13.2 5.9 Russell Midcap Index 3.5 11.7 15.3 14.8 9.5 14.3 13.8 8.1 Russell Midcap Growth Index 5.3 17.3 17.8 14.5 10.0 14.2 13.8 8.2 Russell Midcap Value Index 2.1 7.4 13.4 15.3 9.2 14.3 13.8 7.8 Russell 2000 Index 5.7 10.9 20.7 18.1 12.2 13.8 13.5 7.8 Russell 2000 Growth Index 6.2 16.8 21.0 16.5 12.2 14.3 14.2 8.5 Russell 2000 Value Index 5.1 5.7 20.5 19.7 12.1 13.3 12.8 7.1 International Equity Indices MSCI EAFE 5.4 20.0 19.1 12.6 5.0 8.4 6.4 1.3 MSCI EAFE Growth Index 4.9 22.4 15.7 12.5 6.5 8.9 7.0 2.1 MSCI EAFE Value Index 5.9 17.6 22.5 12.6 3.5 7.8 5.7 0.5 MSCI EAFE Small Cap 7.5 25.4 21.8 17.0 11.1 12.8 10.0 4.6 MSCI AC World Index 5.2 17.3 18.6 15.3 7.4 10.2 9.2 3.9 MSCI AC World ex US 6.2 21.1 19.6 14.3 4.7 7.0 5.2 1.3 MSCI Emerging Markets Index 7.9 27.8 22.5 19.6 4.9 4.0 2.5 1.3 Fixed Income Indices Blmbg. Barc. U.S. Aggregate 0.8 3.1 0.1 2.6 2.7 2.1 3.0 4.3 Blmbg. Barc. Intermed. U.S. Government/Credit 0.6 2.3 0.2 1.9 2.1 1.6 2.3 3.6 Blmbg. Barc. U.S. Long Government/Credit 1.5 7.7 -0.8 6.7 5.5 3.9 6.2 7.4 Blmbg. Barc. U.S. Corp: High Yield 2.0 7.0 8.9 10.8 5.8 6.4 7.5 7.8 BofA Merrill Lynch 3 Month U.S. T-Bill 0.3 0.6 0.7 0.5 0.3 0.2 0.2 0.5 Blmbg. Barc. U.S. TIPS 0.9 1.7 -0.7 2.9 1.6 0.0 2.6 3.9 Citigroup Non-U.S. World Government Bond 2.6 8.6 -3.1 4.4 0.5 -1.1 0.3 2.7 JPM EMBI Global Diversified (external currency)2.6 9.0 4.6 10.3 6.5 4.9 6.3 7.5 JPM GBI-EM Global Diversified (local currency)3.6 14.3 7.3 12.1 0.3 -0.9 0.7 3.8 Real Asset Indices Bloomberg Commodity Index Total Return 2.5 -2.9 -0.3 -1.4 -10.4 -10.5 -6.8 -6.8 Dow Jones Wilshire REIT 0.6 2.4 0.1 8.7 9.7 9.5 11.4 5.6 Capital Markets Review Index Returns As of September 30, 2017 (Percentage Return) _________________________ Returns for periods greater than one year are annualized. 9 Executive Summary 10 Performance Summary - September 2017 Third quarter equity and fixed income index returns were positive. The active international equity fund outpaced its respective benchmark during the quarter. However, active domestic equity had mixed results. Within the target date retirement funds, most options ranked near the median or better than their target date manager universe during the quarter, with the exception of the two earliest dated funds. 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 2015 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. Third quarter performance for active managers in the investment menu produced mixed results. Vanguard International Growth and Vanguard US Growth both outperformed their benchmarks by 440 and 110 basis points, respectively, while Vanguard Windsor II trailed its benchmark by 80 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 Defined Contribution Plan Executive Summary 11 Defined Contribution Plan Executive Summary Capital Markets Review The S&P 500 Index returned 4.5% during the third quarter. Growth-oriented sectors led returns with Information Technology by far the strongest performing sector during the quarter, followed by strong performances by Energy and Telecommunications. Consumer Staples and Utilities were the only two sectors to register a loss during the third quarter. Most developed market equity indices provided similar returns in the +4% to +6% range during the quarter. Emerging Markets were slightly higher, returning +7.9%, led by Brazil and China. Growth continued to outperform value in the third quarter. Emerging Markets experienced the most pronounced performance differential by style, as well as the highest absolute return of the growth stocks. The Fed announced its intention to begin balance sheet normalization in October, and indicated its plans to raise rates in December 2017. In response to hawkish expectations surrounding the Fed, the U.S. dollar’s slide eased in late September. Treasuries returned 0.4% for the quarter, the third consecutive quarter of generating positive absolute returns. The yield on the ten-year U.S. Treasury fell to 2.04% in early September before rebounding sharply to finish the quarter at 2.33%. The yield curve spread between 2- and 30-year Treasuries fell 8 bps. 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)4.4 (55)14.1 (51)18.5 (50)10.7 (29)14.1 (28)7.3 (35) S&P 500 4.5 (54)14.2 (50)18.6 (49)10.8 (27)14.2 (24)7.4 (32) IM U.S. Large Cap Equity 4.6 14.2 18.4 9.4 13.1 6.7 Vanguard US Growth (VWUSX)7.0 (12)24.1 (27)20.0 (51)12.3 (26)15.5 (16)8.3 (40) Russell 1000 Growth Index 5.9 (35)20.7 (58)21.9 (26)12.7 (19)15.3 (21)9.1 (17) IM U.S. Large Cap Growth Equity 5.5 21.7 20.0 11.1 13.9 7.9 Vanguard Windsor II (VWNFX)2.3 (90)10.3 (38)16.5 (57)7.8 (53)12.2 (56)5.8 (41) Russell 1000 Value Index 3.1 (71)7.9 (77)15.1 (75)8.5 (30)13.2 (24)5.9 (39) IM U.S. Large Cap Value Equity 3.7 9.5 16.9 7.9 12.4 5.5 Vanguard Mid-Cap Index (VIMSX)3.4 (61)12.8 (46)15.2 (64)9.6 (32)14.2 (22)7.8 (27) Vanguard Mid-Cap Index Fund Blended Benchmark 3.4 (61)12.9 (45)15.3 (60)9.8 (29)14.5 (17)8.0 (22) IM U.S. Mid Cap Equity 3.8 12.4 16.4 8.8 12.8 6.9 Vanguard Small-Cap Index (NAESX)4.6 (67)10.5 (37)17.2 (73)10.3 (58)13.8 (41)8.4 (22) Vanguard Small-Cap Index Fund Blended Benchmark 4.6 (67)10.6 (36)17.3 (73)10.4 (57)13.9 (37)8.5 (21) IM U.S. Small Cap Equity 5.5 8.6 19.6 10.9 13.1 7.4 International Equity Option Vanguard International Growth (VWIGX)10.6 (8)37.4 (4)28.1 (5)10.4 (7)11.5 (11)4.1 (11) MSCI AC World ex USA (Net)6.2 (51)21.1 (65)19.6 (48)4.7 (62)7.0 (58)1.3 (55) IM International Equity 6.2 23.1 19.3 5.4 7.5 1.4 Fixed Income Options Vanguard Total Bond Market Index (VBMFX)0.7 (91)3.1 (82)-0.2 (94)2.5 (66)1.9 (85)4.1 (83) Vanguard Total Bond Market Index Fund Benchmark 0.8 (77)3.2 (79)0.1 (92)2.7 (61)2.1 (75)4.3 (76) IM U.S. Broad Market Core+ Fixed Income 1.0 4.0 1.7 3.0 2.5 4.9 Vanguard Retirement Savings Trust 0.5 1.3 1.8 1.8 1.8 2.5 Ryan 3 Yr GIC Master 0.4 1.2 1.5 1.3 1.2 2.4 Performance Summary Investment Options As of September 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 September 30, 2017 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Equity/Fixed Income Blend Options Vanguard Balanced Index (VBINX)3.0 (74)9.5 (76)10.7 (80)7.4 (19)9.1 (36)6.5 (8) Vanguard Balanced Index Fund Benchmark 3.1 (72)9.6 (74)10.9 (77)7.6 (14)9.3 (28)6.6 (6) IM Mixed-Asset Target Alloc Growth 3.6 11.2 12.6 6.3 8.8 5.1 Vanguard Target Retirement Income (VTINX)2.0 (68)6.3 (71)5.3 (70)4.3 (30)4.7 (30)4.9 (11) Vanguard Target Income Composite Index (Net)2.0 (58)6.4 (68)5.4 (68)4.5 (26)4.9 (27)4.9 (9) IM Mixed-Asset Target Today 2.1 6.9 6.0 3.9 4.1 4.1 Vanguard Target Retirement 2015 (VTXVX)2.6 (58)8.5 (55)7.9 (71)5.3 (39)6.9 (32)4.9 (11) Vanguard Target 2015 Composite Index (Net)2.7 (54)8.5 (56)8.2 (65)5.5 (24)7.1 (22)4.9 (9) IM Mixed-Asset Target 2015 (MF) Median 2.7 8.7 8.6 5.0 6.5 4.1 Vanguard Target Retirement 2020 (VTWNX)3.1 (29)10.4 (21)10.2 (30)6.2 (7)8.1 (8)5.1 (4) Vanguard Target 2020 Composite Index (Net)3.2 (23)10.3 (22)10.3 (27)6.4 (5)8.3 (5)5.3 (2) IM Mixed-Asset Target 2020 (MF) Median 2.9 9.5 9.2 5.0 6.2 3.9 Vanguard Target Retirement 2025 (VTTVX)3.5 (35)11.6 (33)11.7 (34)6.8 (11)8.9 (14)5.2 (12) Vanguard Target 2025 Composite Index (Net)3.6 (28)11.6 (34)12.0 (28)6.9 (5)9.1 (11)5.4 (10) IM Mixed-Asset Target 2025 (MF) Median 3.4 11.0 11.2 5.8 7.6 4.5 Vanguard Target Retirement 2030 (VTHRX)3.9 (38)12.8 (40)13.3 (39)7.2 (19)9.6 (15)5.3 (13) Vanguard Target 2030 Composite Index (Net)3.9 (34)12.7 (42)13.4 (36)7.4 (13)9.8 (10)5.4 (10) IM Mixed-Asset Target 2030 (MF) Median 3.7 12.4 12.9 6.3 8.3 4.2 Vanguard Target Retirement 2035 (VTTHX)4.2 (43)13.9 (45)14.8 (42)7.6 (29)10.3 (19)5.5 (20) Vanguard Target 2035 Composite Index (Net)4.2 (38)13.8 (48)14.9 (36)7.8 (23)10.5 (10)5.6 (16) IM Mixed-Asset Target 2035 (MF) Median 4.1 13.7 14.5 7.0 9.1 4.8 Vanguard Target Retirement 2040 (VFORX)4.5 (31)15.0 (32)16.3 (31)8.0 (24)10.8 (11)5.7 (12) Vanguard Target 2040 Composite Index (Net)4.6 (27)14.9 (34)16.4 (28)8.2 (15)11.0 (7)5.9 (10) IM Mixed-Asset Target 2040 (MF) Median 4.3 14.4 15.5 7.2 9.5 4.5 Vanguard Target Retirement 2045 (VTIVX)4.7 (35)15.4 (34)16.8 (32)8.1 (26)10.9 (14)5.8 (19) Vanguard Target 2045 Composite Index (Net)4.7 (31)15.3 (40)17.0 (25)8.4 (13)11.2 (10)5.9 (16) IM Mixed-Asset Target 2045 (MF) Median 4.5 15.0 16.1 7.6 9.9 4.9 _________________________ 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 September 30, 2017 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Equity/Fixed Income Blend Options (cont.) Vanguard Target Retirement 2050 (VFIFX)4.7 (41)15.4 (38)16.8 (37)8.1 (25)10.9 (13)5.8 (19) Vanguard Target 2050 Composite Index (Net)4.7 (34)15.3 (41)17.0 (32)8.4 (13)11.2 (9)5.9 (16) IM Mixed-Asset Target 2050 (MF) Median 4.6 15.0 16.5 7.6 10.0 4.6 Vanguard Target Retirement 2055 (VFFVX)4.7 (45)15.4 (46)16.9 (50)8.1 (38)10.9 (24)N/A Vanguard Target 2055 Composite Index (Net)4.7 (42)15.3 (50)17.0 (43)8.4 (22)11.2 (17)N/A IM Mixed-Asset Target 2055+ (MF) Median 4.7 15.3 16.8 7.9 10.3 6.1 Vanguard Target Retirement 2060 (VTTSX)4.7 (51)15.4 (46)16.8 (51)8.1 (39)10.9 (25)N/A Vanguard Target 2060 Composite Index (Net)4.7 (42)15.3 (50)17.0 (43)8.4 (22)11.2 (17)N/A IM Mixed-Asset Target 2055+ (MF) Median 4.7 15.3 16.8 7.9 10.3 6.1 Money Market Option Vanguard Prime Money Market (VMMXX)0.3 0.7 0.9 0.4 0.3 0.6 BofA Merrill Lynch 3 Month U.S. T-Bill 0.3 0.6 0.7 0.3 0.2 0.5 _________________________ 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 September 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 ++In Lin e +-+-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 September 30, 2017 Ma nage rs Va ngua rd Ba la nce d Inde x (V BI NX ) Va ngua rd Ta rge t Re ti re me nt Incom e Fund (V TINX) Va ngua rd Ta rge t Re ti re ment 2015 (V TXVX) Vangua rd Ta rge t Re ti re me nt 2020 (V TW NX ) Vangua rd Ta rge t Re ti re ment 2025 (V TTVX) Vangua rd Ta rge t Re ti re me nt 2030 (V THRX ) Vangua rd Ta rge t Re ti re ment 2035 (V TTHX) Organi zati onal /Produ ct Is sues No ma teria l c hanges to investment team +++++++ No ma teria l o rg aniza tional changes +++++++ Accounting or re gulatory concerns +++++++ Cu rrently in adherence to guidelin es +++++++ Po rt fo lio characteris tics me et s tylis tic expectations +++++++ Re lati ve Perfor ma nc e 1 Three-year re turn better than benchmark N/A N/A N/A N/A N/A N/A N/A Three-year ra nkin g better than peer group median +++++++ Five year return better than benchmark 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 rankin g better than peer group median +++++++ Perfor man ce s tatus +++++++ Summar y s tatus +++++++ 18 Pe rformance Summary Manager Compliance Checklist (Continued) As of September 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 Defined Contribution Plan Assets As of September 30, 2017 Investm ent Options Inve st ment Style Al loca ti on Perce ntage Domestic Eq uity Funds Vangu ard 500 Index Inv US Large Cap Equit y -Core $ 310,573 4.6%$ 11,164 + 3.7% Vangu ard Windsor II Inv US Large Cap Equit y -Value $ 96,921 1.4%$ 3,450 + 3.7% Vangu ard US G rowth Inv US Large Cap Equit y -Growth $ 149,541 2.2%$ 24,444 + 19.5% Vangu ard M id Cap Index Inv US Mid Cap Equit y -Core $ 190,948 2.9%$ 16,128 + 9.2% Vangu ard Small Cap Index Inv US Small Cap Equit y -Core $ 127,951 1.9%$ (18,027)- 12.3% $ 875,933 13.1%$ 37,160 + 4.4% International Equ ity Funds Vangu ard International Growth Int ernat ional Equit y $ 151,470 2.3%$ 26,004 + 20.7% $ 151,470 2.3%$ 26,004 + 20.7% Fixe d I ncome /Alternative Funds Vangu ard T ot al Bond M arket Index Inv Market Duration $ 140,002 2.1%$ 42,633 + 43.8% Vangu ard Ret irement Savings Trus t Sh ort Duration $ 66,061 1.0%$ 3,729 + 6.0% Vangu ard Balanced Index Inv Balanced $ 124,145 1.9%$ (5,062)- 3.9% % C hange From Previous Qtr $ Change From Previous Qtr Vangu ard Balanced Index Inv Balanced $ 124,145 1.9%$ (5,062)- 3.9% $ 330,208 4.9%$ 41,299 + 14.3% Cash Vangu ard Prime M oney Market Cas h $ 81,997 1.2%$ (35,022)- 29.9% $ 81,997 1.2%$ (35,022)- 29.9% Ta rget Date Fu nds Vangu ard T arget Retirement Income Inv Blend $ 21,198 0.3%$ 4,475 + 26.8% Vangu ard T arget Retirement 2010 Inv Blend $ - 0.0%$ (2,704)-100.0% Vangu ard T arget Retirement 2015 Inv Blend $ 3,954 0.1%$ (1,996)- 33.5% Vangu ard T arget Retirement 2020 Inv Blend $ 95,755 1.4%$ 8,653 + 9.9% Vangu ard T arget Retirement 2025 Inv Blend $ 462,197 6.9%$ 28,962 + 6.7% Vangu ard T arget Retirement 2030 Inv Blend $ 360,532 5.4%$ 95,891 + 36.2% Vangu ard T arget Retirement 2035 Inv Blend $ 759,786 11.4%$ 64,844 + 9.3% Vangu ard T arget Retirement 2040 Inv Blend $ 796,113 11.9%$ 79,117 + 11.0% Vangu ard T arget Retirement 2045 Inv Blend $ 1,399,935 20.9%$ 129,227 + 10.2% Vangu ard T arget Retirement 2050 Inv Blend $ 786,867 11.8%$ 84,621 + 12.0% Vangu ard T arget Retirement 2055 Inv Blend $ 450,426 6.7%$ 27,955 + 6.6% Vangu ard T arget Retirement 2060 Inv Blend $ 114,089 1.7%$ 20,205 -- 5,250,853$ 78.5%539,248$ + 11.4% TO TA L $ 6,690,461 100.0%$ 608,689 + 10.0% 21 Plan Summary Fee Comparison Summary As of September 30, 2017 Inv estment Option Expense Ratio Morningstar Category Av erage Fee Level Comp arison Group Median eVestment Al liance Univ erse Median Cate gory Fee Level Comparison Group eVestment Alliance Univ erse Va nguard 500 Index 0.14 1.03 0.90 0.16 La rge Ble nd La rg e Cap No Load US Passive Large Cap Equity Va nguard US Growt h 0.43 1.19 0.90 0.78 La rg e Gro wt h La rg e Cap No Load US Large Cap Gro wt h Va nguard Windsor 0.33 1.10 0.90 0.75 La rg e Value La rg e Cap No Load US Large Cap Value Va nguard Mid-Cap Index 0.18 1.06 1.04 0.18 Mid Ble nd Mid Cap No Load US Passive Mid Cap Equity Va nguard Sma ll-Cap Index 0.18 1.24 1.18 0.19 Small Ble nd Small Ca p No Load US Passive Sma ll Ca p Equity Va nguard International Growth 0.45 1.17 1.02 1.00 Fo reig n Large Gro wt h Foreig n Large Cap No Load ACWI ex-US Gro wt h Equity Va nguard Total Bo nd Market Index 0.15 0.76 0.64 0.46 Interme diate-Term Bo nd Interme diate-Term Bond No Load US Core Fixe d Income Va nguard Retireme nt Saving Trust 0.53 N/A N/A 0.78 N/A N/A US Stable Value Fixed Income Va nguard Balanced Index 0.19 0.96 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 Retire me nt Income No Load Life cycle/Target Date Income Va nguard Target Retireme nt 2015 0.14 0.31 0.75 0.36 Target Date 2011-2015 Target Retireme nt 2011-2015 No Lo ad Life cycle/Target Date 2015 Va nguard Target Retireme nt 2020 0.14 0.38 0.70 0.40 Target Date 2016-2020 Target Retireme nt 2016-2020 No Lo ad Life cycle/Target Date 2020 Va nguard Target Retireme nt 20251 0.14 0.36 0.75 0.40 Target Date 2021-2025 Target Retireme nt 2021-2025 No Lo ad Life cycle/Target Date 2025 Va nguard Target Retireme nt 2030 0.15 0.38 0.76 0.41 Target Date 2026-2030 Target Retireme nt 2026-2030 No Lo ad Life cycle/Target Date 2030 Va nguard Target Retireme nt 2035 0.15 0.37 0.80 0.42 Target Date 2031-2035 Target Retireme nt 3031-2035 No Lo ad Life cycle/Target Date 2035 1 Effective 1/27/17, Vanguard has reduced fees by 1 bps . Fees are updated to reflect this change. Va nguard Target Retireme nt 2035 0.15 0.37 0.80 0.42 Target Date 2031-2035 Target Retireme nt 3031-2035 No Lo ad Life cycle/Target Date 2035 Va nguard Target Retireme nt 2040 0.16 0.38 0.78 0.43 Target Date 2036-2040 Target Retireme nt 2036-2040 No Lo ad Life cycle/Target Date 2040 Va nguard Target Retireme nt 2045 0.16 0.37 0.80 0.43 Target Date 2041-2045 Target Retireme nt 2041-2045 No Lo ad Life cycle/Target Date 2045 Va nguard Target Retireme nt 2050 0.16 0.38 0.79 0.43 Target Date 2046-2050 Target Retireme nt 2046-2050 No Lo ad Life cycle/Target Date 2050 Va nguard Target Retireme nt 2055 0.16 0.36 0.84 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 0.33 0.77 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 0.39 N/A 0.20 Money Market Taxable N/A US Cash Management Pavilio n Consulting Fee ($10,404 p er year) 22 Manager Evaluation 23 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard 500 Index Fund (VFINX)4.4 14.1 18.5 10.7 14.1 7.3 11.8 1.2 13.5 32.2 15.8 2.0 14.9 26.5 -37.0 5.4 S&P 500 4.5 14.2 18.6 10.8 14.2 7.4 12.0 1.4 13.7 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 IM U.S. Large Cap Equity 4.6 14.2 18.4 9.4 13.1 6.7 9.1 0.4 10.9 32.5 15.3 -1.4 13.4 28.2 -37.9 7.1 Vanguard 500 Index Fund (VFINX) Rank 55 51 50 29 28 35 31 44 14 55 44 19 35 59 41 60 Vanguard 500 Index Fund (VFINX)S&P 500 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.1 0.2 -0.1 -0.2 -0.3Return (%)12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard 500 Index Fund (VFINX)14.1 9.5 13.5 -0.1 1.0 1.4 0.0 -10.1 4.9 1.7 41y 1m S&P 500 14.2 9.5 13.6 0.0 1.0 1.4 0.0 N/A 4.9 0.0 41y 1m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 9.5 -1.4 0.0 28.3 41y 1m Manager Evaluation Vanguard 500 Index Fund (VFINX) vs. S&P 500 As of September 30, 2017 24 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)175,960 175,944 Median Mkt. Cap ($M)21,056 21,055 Price/Earnings ratio 22.4 22.4 Price/Book ratio 3.3 3.3 5 Yr. EPS Growth Rate (%)10.0 10.0 Current Yield (%)2.0 2.0 Debt to Equity 1.1 1.1 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)1.42 1.44 Information Ratio (5 Years, Monthly)-10.11 - 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 3.7 3.7 0.0 7.4 Microsoft Corp 2.7 2.7 0.0 8.6 Facebook Inc 1.9 1.9 0.0 13.2 Amazon.com Inc 1.8 1.8 0.0 -0.7 Johnson & Johnson 1.6 1.6 0.0 -1.1 Exxon Mobil Corp 1.6 1.6 0.0 2.5 JPMorgan Chase & Co 1.6 1.6 0.0 5.1 Berkshire Hathaway Inc 1.6 1.6 0.0 8.2 Alphabet Inc 1.3 1.3 0.0 4.7 Google Inc (Class C)1.3 1.3 0.0 5.5 % of Portfolio 19.1 19.1 0.0 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 56.5 31.0 12.3 0.1 56.5 31.0 12.3 0.1 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 3.1 2.2 3.0 3.0 23.2 10.2 14.5 14.6 6.1 8.2 11.9 3.1 2.2 3.0 3.0 23.2 10.2 14.5 14.6 6.1 8.2 11.8 Manager Evaluation Vanguard 500 Index Fund (VFINX) vs. S&P 500 As of September 30, 2017 25 Historical Performance Buy and Hold Attribution Risk and Return (Oct - 2012 - Sep - 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)2.3 10.3 16.5 7.8 12.2 5.8 13.4 -3.2 11.2 30.7 16.7 2.7 10.6 27.1 -36.7 2.2 Russell 1000 Value Index 3.1 7.9 15.1 8.5 13.2 5.9 17.3 -3.8 13.5 32.5 17.5 0.4 15.5 19.7 -36.8 -0.2 IM U.S. Large Cap Value Equity 3.7 9.5 16.9 7.9 12.4 5.5 14.0 -3.8 10.9 32.3 15.6 -2.3 12.7 23.7 -36.8 1.7 Vanguard Windsor II (VWNFX) Rank 90 38 57 53 56 41 62 36 44 78 34 11 82 27 50 44 Vanguard Windsor II (VWNFX)Russell 1000 Value Index 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 10.8 11.7 12.6 13.5 14.4 Return (%)6.9 7.2 7.5 7.8 8.1 8.4 8.7 Risk (Standard Deviation %) Russell 1000 Value Index Vanguard Windsor II (VWNFX) 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 -5.7 -0.3 -4.7 0.5 0.9 9.2 1.5 6.0 -7.7 -1.9 1.1 1.1 0.0 Allocation (Total: -0.1) 0.0 0.2 0.4-0.2-0.4 0.0 0.0 0.1 0.0 0.0 0.2 0.0 -0.2 -0.1 -0.1 0.0 0.0 0.0 Stock (Total: -1.1) 0.0 0.6 1.2-0.6-1.2-1.8 0.0 0.1 0.0 0.0 -0.1 -0.1 0.1 -0.8 0.0 0.2 -0.4 -0.1 0.0 Vanguard Windsor II (VWNFX) 0.0 0.5 1.0-0.5-1.0-1.5 0.0 0.1 0.2 0.0 -0.1 0.1 0.0 -1.0 -0.1 0.2 -0.5 -0.1 0.0 Manager Evaluation Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index As of September 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)145,451 120,129 Median Mkt. Cap ($M)23,462 8,884 Price/Earnings ratio 18.9 19.4 Price/Book ratio 2.7 2.2 5 Yr. EPS Growth Rate (%)5.6 5.0 Current Yield (%)2.4 2.5 Debt to Equity 1.3 1.0 Number of Stocks 280 716 Beta (5 Years, Monthly)0.97 1.00 Consistency (5 Years, Monthly)48.33 1.00 Sharpe Ratio (5 Years, Monthly)1.21 1.30 Information Ratio (5 Years, Monthly)-0.43 - Up Market Capture (5 Years, Monthly)95.14 - Down Market Capture (5 Years, Monthly)98.30 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Microsoft Corp 3.3 0.0 3.3 8.6 Citigroup Inc 3.0 1.6 1.4 9.3 Pfizer Inc 2.7 1.7 1.0 7.3 Medtronic PLC 2.6 0.8 1.8 -11.4 Bank of America Corp 2.4 2.1 0.3 5.0 JPMorgan Chase & Co 2.4 2.8 -0.4 5.1 Wells Fargo & Co 2.3 2.1 0.2 0.3 Oracle Corp 2.2 1.1 1.1 -3.2 United Technologies Corp 2.0 0.7 1.3 -4.4 Johnson Controls International Plc 2.0 0.3 1.7 -6.5 % of Portfolio 24.9 13.2 11.7 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 47.1 28.4 20.3 4.2 0.0 55.2 31.2 9.2 2.2 2.2 Sector Weights (%) Vanguard Windsor II (VWNFX)Russell 1000 Value Index 0.0 6.0 12.0 18.0 24.0 30.0 36.0 Other Cash Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.5 2.2 0.3 2.8 0.3 3.7 17.2 10.1 16.6 18.8 9.2 9.0 9.4 0.0 0.0 6.2 3.2 4.8 2.9 8.2 8.5 13.9 26.0 10.9 8.7 6.8 Manager Evaluation Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index As of September 30, 2017 27 Historical Performance Buy and Hold Attribution Risk and Return (Oct - 2012 - Sep - 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)7.0 24.1 20.0 12.3 15.5 8.3 -0.7 8.5 13.1 35.5 18.4 -0.7 11.5 35.0 -37.8 10.1 Russell 1000 Growth Index 5.9 20.7 21.9 12.7 15.3 9.1 7.1 5.7 13.1 33.5 15.3 2.6 16.7 37.2 -38.4 11.8 IM U.S. Large Cap Growth Equity 5.5 21.7 20.0 11.1 13.9 7.9 1.9 5.6 10.5 34.0 14.8 -1.8 15.1 35.1 -39.8 13.7 Vanguard US Growth (VWUSX) Rank 12 27 51 26 16 40 76 20 21 35 18 36 80 52 30 77 Vanguard US Growth (VWUSX)Russell 1000 Growth Index 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 14.7 15.0 15.3 15.6 15.9 16.2 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 8.0 16.0-8.0-16.0 Utilities Telecommunication Services Real Estate Other Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary Cash 0.0 -1.0 1.4 0.0 -3.2 8.6 -3.1 0.7 3.9 -0.6 -4.4 -2.4 0.0 Allocation (Total: 0.8) 0.0 0.3 0.6-0.3-0.6 0.0 -0.1 0.0 0.0 0.1 0.3 -0.1 0.0 0.1 0.0 0.4 0.1 0.0 Stock (Total: 0.7) 0.0 0.6 1.2 1.8-0.6-1.2 0.0 0.0 0.0 0.0 0.0 0.9 -0.3 -0.1 -0.2 0.0 0.3 0.1 0.0 Vanguard US Growth (VWUSX) 0.0 0.6 1.2 1.8-0.6-1.2 0.0 -0.1 -0.1 0.0 0.1 1.2 -0.3 -0.1 -0.1 0.0 0.7 0.2 0.0 Manager Evaluation Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index As of September 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)164,583 197,751 Median Mkt. Cap ($M)27,869 10,820 Price/Earnings ratio 29.9 26.3 Price/Book ratio 5.7 6.3 5 Yr. EPS Growth Rate (%)19.1 15.3 Current Yield (%)0.7 1.4 Debt to Equity 1.1 1.5 Number of Stocks 148 550 Beta (5 Years, Monthly)1.03 1.00 Consistency (5 Years, Monthly)63.33 1.00 Sharpe Ratio (5 Years, Monthly)1.38 1.46 Information Ratio (5 Years, Monthly)0.10 - Up Market Capture (5 Years, Monthly)103.86 - Down Market Capture (5 Years, Monthly)107.14 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Facebook Inc 4.5 3.3 1.2 13.2 Microsoft Corp 4.2 4.7 -0.5 8.6 Google Inc (Class C)4.0 2.4 1.6 5.5 Mastercard Inc 3.8 1.1 2.7 16.5 PayPal Holdings Inc 3.5 0.6 2.9 19.3 Visa Inc 3.3 1.6 1.7 12.4 Celgene Corp 3.0 0.9 2.1 12.3 Amazon.com Inc 2.5 3.2 -0.7 -0.7 eBay Inc.2.4 0.0 2.4 10.1 Alphabet Inc 2.3 2.4 -0.1 4.7 % of Portfolio 33.5 20.2 13.3 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 54.3 28.0 16.2 1.6 0.0 45.8 33.4 19.6 1.1 0.0 Sector Weights (%) Vanguard US Growth (VWUSX)Russell 1000 Growth Index 0.0 15.0 30.0 45.0 60.0 Other Cash Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.0 0.0 0.0 0.0 3.4 0.6 46.4 9.3 14.7 7.8 0.1 2.9 14.7 0.0 0.0 0.0 1.0 2.6 3.8 37.6 12.5 13.8 3.4 0.9 6.7 17.7 Manager Evaluation Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index As of September 30, 2017 29 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)3.4 12.8 15.2 9.6 14.2 7.8 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 3.4 12.9 15.3 9.8 14.5 8.0 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 3.8 12.4 16.4 8.8 12.8 6.9 11.7 -2.6 8.2 35.1 15.3 -3.8 23.9 36.6 -41.5 9.9 Vanguard Mid-Cap Index Fund (VIMSX) Rank 61 46 64 32 22 27 55 38 8 52 44 36 37 35 53 67 Vanguard Mid-Cap Index Fund (VIMSX) Vanguard Mid-Cap Index Fund Blended Benchmark 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.2 -0.2 -0.4Return (%)12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Mid-Cap Index Fund (VIMSX)14.2 10.4 13.7 -0.2 1.0 1.3 0.1 -3.5 5.5 11.7 19y 4m Vanguard Mid-Cap Index Fund Blended Benchmark 14.5 10.4 13.9 0.0 1.0 1.3 0.0 N/A 5.5 0.0 19y 4m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 10.4 -1.3 0.0 30.0 19y 4m Manager Evaluation Vanguard Mid-Cap Index Fund (VIMSX) vs. Vanguard Mid-Cap Index Fund Blended Benchmark As of September 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)14,431 14,431 Median Mkt. Cap ($M)11,471 11,560 Price/Earnings ratio 22.7 22.7 Price/Book ratio 2.9 2.9 5 Yr. EPS Growth Rate (%)10.3 10.3 Current Yield (%)1.6 1.6 Debt to Equity 0.9 0.9 Number of Stocks 348 338 Beta (5 Years, Monthly)1.00 1.00 Consistency (5 Years, Monthly)15.00 1.00 Sharpe Ratio (5 Years, Monthly)1.32 1.34 Information Ratio (5 Years, Monthly)-2.42 - Up Market Capture (5 Years, Monthly)99.42 - Down Market Capture (5 Years, Monthly)100.75 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Lam Research Corp 0.8 0.8 0.0 31.2 Fiserv Inc.0.7 0.7 0.0 5.4 Amphenol Corp 0.7 0.7 0.0 14.9 Western Digital Corp 0.7 0.7 0.0 -1.9 Roper Technologies Inc 0.7 0.7 0.0 5.3 Autodesk Inc.0.7 0.7 0.0 11.3 Digital Realty Trust Inc 0.7 0.7 0.0 5.6 Bard (C.R.) Inc 0.6 0.6 0.0 1.5 Edwards Lifesciences Corp 0.6 0.6 0.0 -7.6 Moody's Corp.0.6 0.6 0.0 14.7 % of Portfolio 6.8 6.8 0.0 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 17.1 82.4 0.5 17.1 82.4 0.5 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 5.1 0.9 7.2 6.3 17.8 12.7 9.7 14.9 5.1 4.0 16.4 5.1 0.9 7.2 6.3 17.8 12.7 9.7 14.9 5.1 4.0 16.4 Manager Evaluation Vanguard Mid-Cap Index Fund (VIMSX) vs. CRSP U.S. Mid Cap TR Index As of September 30, 2017 31 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)4.6 10.5 17.2 10.3 13.8 8.4 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 4.6 10.6 17.3 10.4 13.9 8.5 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 5.5 8.6 19.6 10.9 13.1 7.4 21.3 -4.8 3.3 37.8 14.1 -4.0 25.7 29.8 -38.6 -0.7 Vanguard Small-Cap Index Fund (NAESX) Rank 67 37 73 58 41 22 66 40 10 52 19 39 32 31 39 44 Vanguard Small-Cap Index Fund (NAESX) Vanguard Small-Cap Index Fund Blended Benchmark 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.2 0.4 -0.2 -0.4Return (%)12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Small-Cap Index Fund (NAESX)13.8 12.1 13.5 -0.1 1.0 1.1 0.1 -2.3 6.8 18.3 49y 8m Vanguard Small-Cap Index Fund Blended Benchmark 13.9 12.1 13.6 0.0 1.0 1.1 0.0 N/A 6.8 0.0 49y 8m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 12.1 -1.1 0.0 33.3 49y 8m Manager Evaluation Vanguard Small-Cap Index Fund (NAESX) vs. Vanguard Small-Cap Index Fund Blended Benchmark As of September 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)4,371 4,376 Median Mkt. Cap ($M)2,244 2,246 Price/Earnings ratio 22.7 22.7 Price/Book ratio 2.7 2.7 5 Yr. EPS Growth Rate (%)12.8 12.8 Current Yield (%)1.5 1.5 Debt to Equity 2.0 2.0 Number of Stocks 1,427 1,412 Beta (5 Years, Monthly)1.00 1.00 Consistency (5 Years, Monthly)16.67 1.00 Sharpe Ratio (5 Years, Monthly)1.12 1.14 Information Ratio (5 Years, Monthly)-1.00 - Up Market Capture (5 Years, Monthly)99.09 - Down Market Capture (5 Years, Monthly)100.71 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Teleflex Inc 0.3 0.3 0.0 16.7 Take-Two Interactive Software Inc 0.3 0.3 0.0 39.3 CDW Corp 0.3 0.3 0.0 5.8 Alnylam Pharmaceuticals Inc 0.3 0.3 0.0 47.3 Diamondback Energy Inc 0.3 0.3 0.0 10.3 Broadridge Financial Solutions Inc 0.3 0.3 0.0 7.5 Chemours Co (The)0.3 0.3 0.0 33.6 IDEX Corporation 0.3 0.3 0.0 7.8 CoStar Group Inc 0.3 0.3 0.0 1.8 Spirit Aerosystems Holdings Inc 0.3 0.3 0.0 34.3 % of Portfolio 3.0 3.0 0.0 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 34.7 65.3 0.0 34.6 65.4 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 0.5 10.6 5.7 17.3 15.7 11.9 14.4 4.7 3.2 11.8 4.1 0.5 10.6 5.7 17.3 15.8 11.9 14.5 4.7 3.2 11.8 Manager Evaluation Vanguard Small-Cap Index (NAESX) vs. CRSP U.S. Small Cap TR Index As of September 30, 2017 33 Historical Performance Buy and Hold Attribution Risk and Return (Oct - 2012 - Sep - 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)10.6 37.4 28.1 10.4 11.5 4.1 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)6.2 21.1 19.6 4.7 7.0 1.3 4.5 -5.7 -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 IM International Equity 6.2 23.1 19.3 5.4 7.5 1.4 1.8 -2.8 -4.5 17.4 18.6 -14.9 12.9 36.3 -46.0 13.2 Vanguard Int. Growth (VWIGX) Rank 8 4 5 7 11 11 51 37 62 23 36 40 36 39 44 40 Vanguard Int. Growth (VWIGX)MSCI AC World ex USA (Net) 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 0.0 4.0 8.0 12.0 16.0 20.0 Return (%)8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 Risk (Standard Deviation %) MSCI AC World ex USA (Net) Vanguard Int. Growth (VWIGX) Average Active Weight 0.0 15.0 30.0-15.0 Utilities Telecommunication Services Real Estate Other Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary Cash -3.1 -0.8 -3.2 0.2 -3.1 13.1 -1.4 1.1 -5.5 -5.3 -3.5 11.7 0.0 Allocation (Total: 0.3) 0.0 0.5 1.0-0.5-1.0 0.0 0.0 0.0 0.0 -0.1 0.5 0.0 -0.1 0.0 -0.4 0.2 0.1 0.0 Stock (Total: 4.4) 0.0 1.5 3.0-1.5 0.0 0.0 0.0 0.0 0.3 2.2 0.3 0.7 0.1 0.0 0.0 0.8 0.0 Vanguard Int. Growth (VWIGX) 0.0 2.0 4.0-2.0 0.0 0.0 0.0 0.0 0.1 2.6 0.3 0.7 0.1 -0.3 0.2 0.9 0.0 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) As of September 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 0.4 0.8 1.2 1.6 2.0 2.4 2.8 3.2 3.6-0.4-0.8-1.2-1.6 Pacific Other North America Middle East Frontier Markets Europe ex EMU EMU EM Latin America EM Europe + Middle East + Africa EM Asia Cash 0.9 0.0 -0.4 0.0 0.0 0.8 1.2 -0.1 0.0 2.4 0.0 Performance Attribution Average Active Weight 0.0 3.0 6.0 9.0-3.0-6.0-9.0 Pacific Other North America Middle East Frontier Markets Europe ex EMU EMU EM Latin America EM Europe + Middle East + Africa EM Asia Cash -5.4 -0.3 3.2 1.5 1.4 -2.4 3.9 -1.5 -3.5 3.1 0.0 Allocation (Total: -0.6) 0.0 0.2 0.4-0.2-0.4-0.6 0.1 0.0 0.1 -0.3 -0.3 0.0 0.1 -0.1 0.0 0.0 0.0 Stock (Total: 5.3) 0.0 1.0 2.0 3.0 4.0-1.0-2.0 0.8 0.0 -0.5 0.3 0.3 0.8 1.1 0.0 0.0 2.4 0.0 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) 1 Quarter Ending September 30, 2017 35 Portfolio Characteristics Portfolio Benchmark Wtd. Avg. Mkt. Cap ($M)103,074 65,456 Median Mkt. Cap ($M)27,055 8,265 Price/Earnings ratio 23.4 16.4 Price/Book ratio 3.7 2.3 5 Yr. EPS Growth Rate (%)14.8 7.8 Current Yield (%)1.4 3.0 Debt to Equity 1.0 1.4 Number of Stocks 118 1,859 Beta (5 Years, Monthly)1.09 1.00 Consistency (5 Years, Monthly)56.67 1.00 Sharpe Ratio (5 Years, Monthly)0.88 0.63 Information Ratio (5 Years, Monthly)1.06 - Up Market Capture (5 Years, Monthly)121.30 - 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 1.2 4.4 20.3 Alibaba Group Holding Ltd 5.4 0.9 4.5 22.6 Baidu Inc 3.8 0.3 3.5 38.5 ASML Holding NV 3.5 0.3 3.2 30.9 AIA Group Ltd 2.9 0.4 2.5 1.3 Amazon.com Inc 2.5 0.0 2.5 -0.7 Industria De Diseno Textil Inditex SA 2.5 0.2 2.3 -1.7 Banco Bilbao Vizcaya Argentaria 2.0 0.3 1.7 7.9 Svenska Handelsbanken 1.8 0.1 1.7 5.3 Illumina Inc 1.8 0.0 1.8 14.8 % of Portfolio 31.8 3.7 28.1 Distribution of Market Capitalization (%) Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) 0.0 15.0 30.0 45.0 60.0 >$75 Bil $20 Bil - $75 Bil $5 Bil - $20 Bil $0 - $5 Bil Cash 26.0 38.7 29.7 5.6 0.0 33.1 43.2 21.7 1.9 0.0 Sector Weights (%) Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) 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 0.2 0.0 0.0 3.3 0.0 5.5 24.8 10.3 9.0 17.3 1.0 6.1 22.6 0.0 0.0 3.1 4.2 3.2 7.8 11.2 11.8 7.9 23.3 6.6 9.6 11.3 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) As of September 30, 2017 36 Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) Australia 0.4 4.7 Hong Kong 8.9 5.1 Japan 11.1 15.9 New Zealand 0.0 0.1 Singapore 0.3 0.9 Pacific 20.8 26.7 Austria 0.0 0.2 Belgium 0.4 0.8 Finland 0.0 0.7 France 5.1 7.0 Germany 10.1 6.7 Ireland 0.3 0.4 Italy 3.1 1.5 Netherlands 4.6 2.8 Portugal 0.2 0.1 Spain 4.7 2.4 EMU 28.6 22.6 Denmark 2.8 1.3 Norway 0.9 0.5 Sweden 5.8 2.0 Switzerland 3.4 5.8 United Kingdom 6.7 12.5 Europe ex EMU 19.5 22.1 Canada 1.8 6.7 United States 7.4 0.2 Israel 1.2 0.3 Middle East 1.2 0.3 Developed Markets 79.2 78.6 Vanguard International Growth (VWIGX) MSCI AC World ex USA (Net) Brazil 0.6 1.8 Cayman Islands 0.0 0.0 Chile 0.0 0.3 Colombia 0.0 0.1 Mexico 0.4 0.8 Peru 0.0 0.0 Virgin Islands 0.0 0.0 EM Latin America 1.0 3.1 China 13.3 4.2 India 1.9 2.0 Indonesia 0.3 0.5 Korea 1.2 3.6 Malaysia 0.0 0.5 Philippines 0.0 0.3 Taiwan 1.1 2.8 Thailand 0.5 0.5 EM Asia 18.4 14.5 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 0.1 Russia 0.0 0.8 South Africa 0.0 1.5 Turkey 0.0 0.3 United Arab Emirates 0.0 0.2 EM Europe + Middle East + Africa 0.0 3.5 Emerging Markets 19.4 21.1 Frontier Markets 1.3 0.0 Cash 0.0 0.0 Other 0.0 0.3 Total 100.0 100.0 Manager Evaluation Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net) As of September 30, 2017 37 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Total Bond Market Index Fund (VBMFX)0.7 3.1 -0.2 2.5 1.9 4.1 2.5 0.3 5.8 -2.3 4.0 7.6 6.4 5.9 5.1 6.9 Vanguard Total Bond Market Index Fund Benchmark 0.8 3.2 0.1 2.7 2.1 4.3 2.8 0.4 5.9 -2.0 4.3 7.9 6.6 5.9 5.2 7.0 IM U.S. Broad Market Core+ Fixed Income 1.0 4.0 1.7 3.0 2.5 4.9 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 91 82 94 66 85 83 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.3 0.6 -0.3 -0.6Return (%)12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 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)1.9 3.0 1.7 -0.3 1.0 0.6 0.3 -0.8 1.9 40.0 30y 9m Vanguard Total Bond Market Index Fund Benchmark 2.1 2.9 1.9 0.0 1.0 0.7 0.0 N/A 1.8 0.0 30y 9m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 2.9 -0.7 0.0 40.0 30y 9m Manager Evaluation Vanguard Total Bond Market Index Fund (VBMFX) vs. Vanguard Total Bond Market Index Fund Benchmark As of September 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 8.3 8.3 Avg. Quality AA AA+ Yield To Maturity (%)2.6 2.5 Credit Quality Distribution (%) Vanguard Total Bond Market Index (VBMFX) Blmbg. Barc. U.S. Aggregate Float Adjusted 0.0 25.0 50.0 75.0 100.0 AAAAAABBB68.5 4.5 11.8 15.2 69.1 3.9 11.8 15.2 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 20.4 39.8 4.0 13.4 0.4 22.2 20.8 39.6 3.8 13.2 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-USEmergingOtherCMBS40.6 2.7 23.5 21.1 0.5 7.6 2.0 0.0 2.0 40.3 2.0 28.4 21.3 0.3 5.6 0.0 0.3 1.8 Manager Evaluation Vanguard Total Bond Market Index (VBMFX) vs. Blmbg. Barc. U.S. Aggregate Float Adjusted As of September 30, 2017 39 Historical Performance Comparative Performance and Rolling Return Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Quarterly Periodicity (Oct-2012 - Sep-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 0.5 1.3 1.8 1.8 1.8 2.5 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 1.2 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 1.2 1.1 1.0 0.8 1.9 1.4 0.3 0.6 0.2 2.3 1.2 3.2 6.0 -1.1 4.9 Vanguard Retirement Savings Trust Rank 36 46 19 12 8 22 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 9/17 0.0 0.6 1.2 1.8 2.4 3.0 Return (%)0.0 0.1 0.2 Risk (Standard Deviation %) Ryan 3 Yr GIC Master Vanguard Retirement Savings Trust Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Retirement Savings Trust 1.8 0.1 1.6 1.8 0.0 10.4 0.1 5.2 0.0 100.0 14y 9m Ryan 3 Yr GIC Master 1.2 0.1 1.0 0.0 1.0 14.1 0.0 N/A 0.0 0.0 14y 9m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 -1.3 1.2 N/A 0.1 -14.1 0.0 0.0 14y 9m Manager Evaluation Vanguard Retirement Savings Trust vs. Ryan 3 Yr GIC Master As of September 30, 2017 40 Historical Performance Three Year Rolling Percentile Ranking Relative Performance Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Balanced Index Fund (VBINX)3.0 9.5 10.7 7.4 9.1 6.5 8.6 0.4 9.8 17.9 11.3 4.1 13.1 20.1 -22.2 6.2 Vanguard Balanced Index Fund Benchmark 3.1 9.6 10.9 7.6 9.3 6.6 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 3.6 11.2 12.6 6.3 8.8 5.1 6.9 -1.2 6.4 19.9 13.0 -1.9 12.7 24.9 -30.7 6.4 Vanguard Balanced Index Fund (VBINX) Rank 74 76 80 19 36 8 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Cumulative Annualized Over/Under Relative Performance Over/Under Performance 0.0 0.4 0.8 -0.4 -0.8Return (%)12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Balanced Index Fund (VBINX)9.1 5.8 8.7 -0.1 1.0 1.5 0.1 -1.4 3.0 31.7 24y 10m Vanguard Balanced Index Fund Benchmark 9.3 5.8 8.9 0.0 1.0 1.5 0.0 N/A 2.9 0.0 24y 10m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 5.8 -1.5 0.0 23.3 24y 10m Manager Evaluation Vanguard Balanced Index Fund (VBINX) vs. Vanguard Balanced Index Fund Benchmark As of September 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)144,575 144,559 Median Mkt. Cap ($M)1,283 1,109 Price/Earnings ratio 22.4 22.4 Price/Book ratio 3.2 3.2 5 Yr. EPS Growth Rate (%)10.3 10.3 Current Yield (%)1.9 1.9 Debt to Equity 1.2 1.2 Number of Stocks 3,352 3,591 Beta (5 Years, Monthly)0.59 1.00 Consistency (5 Years, Monthly)30.00 1.00 Sharpe Ratio (5 Years, Monthly)1.50 1.41 Information Ratio (5 Years, Monthly)-1.17 - Up Market Capture (5 Years, Monthly)62.54 - Down Market Capture (5 Years, Monthly)58.57 - Top Ten Equity Holdings Portfolio Weight (%) Benchmark Weight (%) Active Weight (%) Quarterly Return (%) Apple Inc 2.8 2.8 0.0 7.4 Microsoft Corp 2.2 2.2 0.0 8.6 Facebook Inc 1.6 1.6 0.0 13.2 Amazon.com Inc 1.5 1.5 0.0 -0.7 Johnson & Johnson 1.3 1.3 0.0 -1.1 Exxon Mobil Corp 1.3 1.3 0.0 2.5 JPMorgan Chase & Co 1.3 1.3 0.0 5.1 Berkshire Hathaway Inc 1.3 0.9 0.4 8.2 Google Inc (Class C)1.1 1.1 0.0 5.5 Alphabet Inc 1.1 1.1 0.0 4.7 % of Portfolio 15.5 15.1 0.4 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 Cash 46.5 25.9 17.1 10.4 0.0 46.5 25.9 17.1 10.4 0.0 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 Cash Utilities Telecommunication Services Real Estate Materials Information Technology Industrials Health Care Financials Energy Consumer Staples Consumer Discretionary 0.0 3.2 2.0 4.0 3.4 22.1 10.9 14.1 15.0 5.7 7.4 12.1 0.0 3.2 2.0 4.0 3.4 22.1 11.0 14.1 15.0 5.8 7.4 12.1 Manager Evaluation Vanguard Balanced Index Fund (VBINX) - Equity Holdings vs. CRSP U.S. Total Market TR Index As of September 30, 2017 42 Portfolio Characteristics Portfolio Benchmark Effective Duration 6.1 6.1 Avg. Maturity 8.4 8.3 Avg. Quality AA AA+ Yield To Maturity (%)2.6 2.5 Credit Quality Distribution (%) Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings Blmbg. Barc. U.S. Aggregate Float Adjusted 0.0 25.0 50.0 75.0 100.0 AAAAAABBB68.5 4.5 11.8 15.2 69.1 3.8 11.7 15.4 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 20.4 39.8 4.0 13.4 1.0 20.0 17.3 22.2 8.2 31.2 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-USEmergingOtherCMBS40.6 2.7 23.5 21.1 0.5 7.6 2.0 0.0 2.0 42.4 0.0 28.1 21.3 2.5 4.9 0.0 0.8 0.0 Manager Evaluation Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings vs. Blmbg. Barc. U.S. Aggregate Float Adjusted As of September 30, 2017 43 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-2017) Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Vanguard Target Retirement Income (VTINX)2.0 6.3 5.3 4.3 4.7 4.9 5.3 -0.2 5.5 5.9 8.2 5.2 9.4 14.3 -10.9 8.2 Vanguard Target Income Composite Index (Net)2.0 6.4 5.4 4.5 4.9 4.9 5.4 0.1 5.8 6.0 8.4 5.3 9.4 14.3 -11.3 8.1 IM Mixed-Asset Target Today 2.1 6.9 6.0 3.9 4.1 4.1 5.2 -1.4 3.9 5.4 8.9 2.8 9.5 18.1 -16.0 4.9 Vanguard Target Retirement Income (VTINX) Rank 68 71 70 30 30 11 46 10 10 37 67 9 53 82 10 1 Vanguard Target Retirement Income (VTINX) Vanguard Target Income Composite Index (Net) 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 4.4 4.6 4.8 5.0 5.2 Return (%)2.9 3.0 3.1 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)4.7 3.4 4.4 -0.2 1.0 1.3 0.3 -0.7 1.9 40.0 13y 11m Vanguard Target Income Composite Index (Net)4.9 3.5 4.6 0.0 1.0 1.3 0.0 N/A 1.9 0.0 13y 11m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 3.4 -1.3 0.0 31.7 13y 11m Manager Evaluation Vanguard Target Retirement Income (VTINX) vs. Vanguard Target Income Composite Index (Net) As of September 30, 2017 44 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)2.6 8.5 7.9 5.3 6.9 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)2.7 8.5 8.2 5.5 7.1 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 2.7 8.7 8.6 5.0 6.5 4.1 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 58 55 71 39 32 11 60 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 6.6 6.8 7.0 7.2 7.4 Return (%)3.9 4.0 4.1 4.2 Risk (Standard Deviation %) Vanguard Target 2015 Composite Index (Net) Vanguard Target Retirement 2015 (VTXVX) Return Standard Deviation Excess Return Alpha Beta Sharpe Ratio Tracking Error Information Ratio Downside Risk Consistency Inception Date Vanguard Target Retirement 2015 (VTXVX)6.9 5.0 6.6 -0.1 1.0 1.3 0.3 -0.5 2.6 43.3 13y 11m Vanguard Target 2015 Composite Index (Net)7.1 5.0 6.8 0.0 1.0 1.4 0.0 N/A 2.7 0.0 13y 11m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 5.0 -1.4 0.0 30.0 13y 11m Manager Evaluation Vanguard Target Retirement 2015 (VTXVX) vs. Vanguard Target 2015 Composite Index (Net) As of September 30, 2017 45 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)3.1 10.4 10.2 6.2 8.1 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)3.2 10.3 10.3 6.4 8.3 5.3 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 2.9 9.5 9.2 5.0 6.2 3.9 6.3 -1.4 4.7 11.8 11.5 -0.4 12.3 26.0 -31.8 6.3 Vanguard Target Retirement 2020 (VTWNX) Rank 29 21 30 7 8 4 30 24 1 19 37 33 37 71 22 34 Vanguard Target Retirement 2020 (VTWNX) Vanguard Target 2020 Composite Index (Net) 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 7.8 8.0 8.2 8.4 8.6 Return (%)4.7 4.8 4.9 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)8.1 5.9 7.8 -0.1 1.0 1.3 0.4 -0.5 3.1 36.7 11y 3m Vanguard Target 2020 Composite Index (Net)8.3 5.9 8.0 0.0 1.0 1.3 0.0 N/A 3.1 0.0 11y 3m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 5.9 -1.3 0.0 28.3 11y 3m Manager Evaluation Vanguard Target Retirement 2020 (VTWNX) vs. Vanguard Target 2020 Composite Index (Net) As of September 30, 2017 46 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)3.5 11.6 11.7 6.8 8.9 5.2 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)3.6 11.6 12.0 6.9 9.1 5.4 7.7 -0.6 7.4 18.5 13.4 0.1 13.9 25.2 -30.4 7.6 IM Mixed-Asset Target 2025 3.4 11.0 11.2 5.8 7.6 4.5 6.9 -1.4 5.2 15.8 13.0 -2.0 13.4 28.9 -35.0 7.2 Vanguard Target Retirement 2025 (VTTVX) Rank 35 33 34 11 14 12 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 8.7 9.0 9.3 9.6 Return (%)5.2 5.3 5.4 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)8.9 6.6 8.5 -0.1 1.0 1.3 0.4 -0.5 3.5 43.3 13y 11m Vanguard Target 2025 Composite Index (Net)9.1 6.6 8.7 0.0 1.0 1.3 0.0 N/A 3.6 0.0 13y 11m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 6.6 -1.3 0.0 26.7 13y 11m Manager Evaluation Vanguard Target Retirement 2025 (VTTVX) vs. Vanguard Target 2025 Composite Index (Net) As of September 30, 2017 47 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)3.9 12.8 13.3 7.2 9.6 5.3 7.9 -1.0 7.2 20.5 14.2 -1.3 14.4 26.7 -32.9 7.5 Vanguard Target 2030 Composite Index (Net)3.9 12.7 13.4 7.4 9.8 5.4 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 3.7 12.4 12.9 6.3 8.3 4.2 7.3 -1.6 5.2 17.9 13.7 -2.6 13.6 28.8 -36.4 6.5 Vanguard Target Retirement 2030 (VTHRX) Rank 38 40 39 19 15 13 34 29 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 9.2 9.4 9.6 9.8 10.0 10.2 Return (%)5.8 5.9 6.0 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)9.6 7.2 9.2 -0.1 1.0 1.3 0.4 -0.4 3.9 43.3 11y 3m Vanguard Target 2030 Composite Index (Net)9.8 7.3 9.4 0.0 1.0 1.3 0.0 N/A 4.0 0.0 11y 3m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 7.3 -1.3 0.0 28.3 11y 3m Manager Evaluation Vanguard Target Retirement 2030 (VTHRX) vs. Vanguard Target 2030 Composite Index (Net) As of September 30, 2017 48 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)4.2 13.9 14.8 7.6 10.3 5.5 8.3 -1.3 7.2 22.8 15.2 -2.2 15.1 28.2 -34.7 7.5 Vanguard Target 2035 Composite Index (Net)4.2 13.8 14.9 7.8 10.5 5.6 8.6 -1.0 7.6 23.3 15.2 -1.9 15.2 28.7 -35.1 7.6 IM Mixed-Asset Target 2035 4.1 13.7 14.5 7.0 9.1 4.8 7.7 -1.7 5.4 20.8 14.7 -3.3 14.6 31.0 -36.1 7.5 Vanguard Target Retirement 2035 (VTTHX) Rank 43 45 42 29 19 20 36 38 9 24 42 21 29 66 13 51 Vanguard Target Retirement 2035 (VTTHX) Vanguard Target 2035 Composite Index (Net) 0 25 50 75 100Return Percentile Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 10.0 10.2 10.4 10.6 10.8 Return (%)6.4 6.5 6.6 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)10.3 8.0 10.0 -0.1 1.0 1.3 0.5 -0.4 4.4 46.7 13y 11m Vanguard Target 2035 Composite Index (Net)10.5 8.0 10.2 0.0 1.0 1.3 0.0 N/A 4.4 0.0 13y 11m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 8.0 -1.3 0.0 30.0 13y 11m Manager Evaluation Vanguard Target Retirement 2035 (VTTHX) vs. Vanguard Target 2035 Composite Index (Net) As of September 30, 2017 49 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)4.5 15.0 16.3 8.0 10.8 5.7 8.7 -1.6 7.1 24.4 15.6 -2.5 15.2 28.3 -34.5 7.5 Vanguard Target 2040 Composite Index (Net)4.6 14.9 16.4 8.2 11.0 5.9 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 4.3 14.4 15.5 7.2 9.5 4.5 8.0 -1.8 5.4 21.6 14.9 -3.9 14.6 30.7 -38.1 6.5 Vanguard Target Retirement 2040 (VFORX) Rank 31 32 31 24 11 12 28 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 10.2 10.5 10.8 11.1 11.4 11.7 Return (%)6.9 7.0 7.1 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)10.8 8.6 10.5 -0.1 1.0 1.2 0.5 -0.4 4.7 41.7 11y 3m Vanguard Target 2040 Composite Index (Net)11.0 8.7 10.7 0.0 1.0 1.2 0.0 N/A 4.8 0.0 11y 3m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 8.7 -1.2 0.0 30.0 11y 3m Manager Evaluation Vanguard Target Retirement 2040 (VFORX) vs. Vanguard Target 2040 Composite Index (Net) As of September 30, 2017 50 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)4.7 15.4 16.8 8.1 10.9 5.8 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)4.7 15.3 17.0 8.4 11.2 5.9 9.1 -1.3 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 IM Mixed-Asset Target 2045 4.5 15.0 16.1 7.6 9.9 4.9 8.2 -1.8 5.6 23.1 15.5 -4.0 15.0 31.1 -38.5 6.8 Vanguard Target Retirement 2045 (VTIVX) Rank 35 34 32 26 14 19 29 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 10.5 10.8 11.1 11.4 11.7 Return (%)6.9 7.0 7.1 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)10.9 8.6 10.6 -0.1 1.0 1.2 0.5 -0.4 4.7 45.0 13y 11m Vanguard Target 2045 Composite Index (Net)11.2 8.7 10.8 0.0 1.0 1.2 0.0 N/A 4.8 0.0 13y 11m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 8.7 -1.2 0.0 30.0 13y 11m Manager Evaluation Vanguard Target Retirement 2045 (VTIVX) vs. Vanguard Target 2045 Composite Index (Net) As of September 30, 2017 51 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)4.7 15.4 16.8 8.1 10.9 5.8 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)4.7 15.3 17.0 8.4 11.2 5.9 9.1 -1.3 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 IM Mixed-Asset Target 2050 4.6 15.0 16.5 7.6 10.0 4.6 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 41 38 37 25 13 19 32 45 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 10.5 10.8 11.1 11.4 11.7 Return (%)6.9 7.0 7.1 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)10.9 8.6 10.6 -0.1 1.0 1.2 0.5 -0.4 4.8 45.0 11y 3m Vanguard Target 2050 Composite Index (Net)11.2 8.7 10.8 0.0 1.0 1.2 0.0 N/A 4.8 0.0 11y 3m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 8.7 -1.2 0.0 30.0 11y 3m Manager Evaluation Vanguard Target Retirement 2050 (VFIFX) vs. Vanguard Target 2050 Composite Index (Net) As of September 30, 2017 52 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)4.7 15.4 16.9 8.1 10.9 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)4.7 15.3 17.0 8.4 11.2 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+4.7 15.3 16.8 7.9 10.3 6.1 8.1 -1.6 5.4 23.2 15.6 -4.7 14.8 30.8 -40.7 N/A Vanguard Target Retirement 2055 (VFFVX) Rank 45 46 50 38 24 N/A 27 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 10.5 10.8 11.1 11.4 11.7 Return (%)6.9 7.0 7.1 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)10.9 8.6 10.5 -0.1 1.0 1.2 0.5 -0.5 4.8 43.3 7y Vanguard Target 2055 Composite Index (Net)11.2 8.7 10.8 0.0 1.0 1.2 0.0 N/A 4.8 0.0 7y 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 8.7 -1.2 0.0 30.0 7y Manager Evaluation Vanguard Target Retirement 2055 (VFFVX) vs. Vanguard Target 2055 Composite Index (Net) As of September 30, 2017 53 Historical Performance Three Year Rolling Percentile Ranking Risk and Return (Oct-2012 - Sep-2017) Historical Statistics - Monthly Periodicity (Oct-2012 - Sep-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)4.7 15.4 16.8 8.1 10.9 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)4.7 15.3 17.0 8.4 11.2 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+4.7 15.3 16.8 7.9 10.3 6.1 8.1 -1.6 5.4 23.2 15.6 -4.7 14.8 30.8 -40.7 N/A Vanguard Target Retirement 2060 (VTTSX) Rank 51 46 51 39 25 N/A 28 51 17 36 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 Rank12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 9/17 10.5 10.8 11.1 11.4 11.7 Return (%)6.9 7.0 7.1 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)10.9 8.6 10.5 -0.1 1.0 1.2 0.5 -0.5 4.8 46.7 5y 8m Vanguard Target 2060 Composite Index (Net)11.2 8.7 10.8 0.0 1.0 1.2 0.0 N/A 4.8 0.0 5y 8m 90 Day U.S. Treasury Bill 0.2 0.1 0.0 0.2 0.0 N/A 8.7 -1.2 0.0 30.0 5y 8m Manager Evaluation Vanguard Target Retirement 2060 (VTTSX) vs. Vanguard Target 2060 Composite Index (Net) As of September 30, 2017 54 Manager Evaluation Ta rget-Date Funds Asset Allocation As of September 30, 2017 U.S.Equ ity 18.1%26.2%33.5%38.6%43.1%47.6%52.1%54.3%54.3%54.3%54.2%53.9% Va nguard Total St ock Marke t Index F und 18.1%26.2%33.5%38.6%43.1%47.6%52.1%54.3%54.3%54.3%54.2%53.9% Non-U.S . Equ ity 12.0%17.3%22.2%25.6%28.5%31.4%34.3%35.8%35.8%35.8%35.9%36.1% Va nguard Total In ternational St ock In dex Fu nd 12.0%17.3%22.2%25.6%28.5%31.4%34.3%35.8%35.8%35.8%35.9%36.1% Fi xe d In come 69.9%56.5%44.3%35.8%28.4%21.0%13.6%9.9%9.9%9.9%9.9%10.0% Va nguard Total Bo nd Market II In dex Fu nd 37.4%32.1%28.5%25.2%20.0%14.8%9.6%7.0%7.0%7.0%7.0%7.0% Va nguard Total In ternational Bo nd Stock In dex Fu nd 15.8%13.5%12.0%10.6%8.4%6.2%4.0%2.9%2.9%2.9%2.9%3.0% Va nguard Infla tion-Pro tected Securit ie s Fund 16.7%10.9%3.8%0.0%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%100.0% Vanguard Compone nt Fu nds Re ti rement In come Tar get Date 2045 Tar get Date 2050 Tar get Date 2015 Tar get Date 2020 Tar get Date 2025 Tar get Date 2030 Tar get Date 2035 Tar get Date 2040 Tar get Date 2055 Tar get Date 2060 Tar get Date 2065 55 Appendix 56 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 57