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HomeMy Public PortalAbout2019 1st Quarter ReportVisit the Aon Retirement and Investment Blog (https://retirement-investment-insights.aon.com); sharing our best thinking. Metropolitan St. Louis Sewer District Pension Plan | First Quarter 2019 Quarterly Investment Review Executive Summary Page 1 Total Plan Page 7 Total Domestic Equity Page 17 Total International Equity Page 31 Total Fixed Income Page 43 Hedge Fund Page 57 Real Estate Page 59 Market Environment Page 63 Appendix Page 77 Disclaimers and Notes Page 87 Table Of Contents Executive Summary Page 1 Aon Happenings New Thought Leadership Hub Aon’s Retirement & Investment practice has launched a new Thought Leadership Hub to house much of our intellectual capital Check it out at https://retirement-investment-insights.aon.com/ Did you know? Aon recently completed our triennial study on the retirement readiness of American workers, “The Real Deal.”1 Key findings include: Only 1 in 3 workers will have saved enough to retire comfortably by age 67 70 is the age at which the median employee is expected to be financially ready to retire 11.1 is the multiple of pay at an age 67 retirement the average employee needs to maintain their standard of living in retirement 16% is the proportion of pay, from both employer contributions and employee savings, the average employee needs to defer beginning at age 25 to accumulate 11.1 times pay at age 67 Ask your Aon consultant if you want our experts to analyze your plan population for retirement readiness and review opportunities to improve Aon’s 2019 Retirement & Investment Client Conference Mark your calendar for September 25-26, 2019, when Aon will be hosting our Client Conference in Chicago. We’ll provide more details, such as the agenda and speakers, as the event gets closer. 1The Real Deal: 2018 Retirement Income Adequacy Study. https://retirement-investment-insights.aon.com/retirement-investment-insights/real-deal-2018-retirement-income-study Your new Aon Client Portal is here! On the portal, you’ll be able to securely access: Documents shared by your consultant Thought leadership Over 2/3 of Aon’s investment consulting clients are using the Portal as of 4/4/2019. Please give us feedback on what you think or if you want to review whether it might help your investment program. Page 2 Thought Leadership Highlights Current Topics of Interest First Quarter 2019 Market Review and Outlook Link Newsletters: Pathways Newsletter for Retirement Plans | CIO Newsletter | Connections Newsletter for Non-Profits | Legal Consulting and Compliance Newsletter White Papers All Investors: Cyber Risk Exposure from Third-party Asset Managers Link All Investors: Global Invested Capital Markets Link All Investors: Key Considerations for Responsible Investing Initiatives Link All Investors: What is Different about this Commercial Real Estate Cycle?Link All Investors: Bank Capital Relief Link All Investors: Debating Active vs. Passive Link All Investors: Making Portfolios More Fee-Efficient Link All Investors: The Real Deal Link All Investors ex-DC: Alternative Premia, Alternative Price Link All investors ex-DC: Direct Lending: An Investment Opportunity Within Private Debt Link All Investors ex-DC: When Opportunity Knocks Again: Ideas for Incorporating Opportunistic Flexibility Into Asset Allocation Link All Investors ex-DC: Why Diversify Now?Link DC: DC Case Study Improving Participant Experience Link DC: Government, Education, and Utility Sectors Could be fit for an ‘Aggressive’ Target Date Fund Glide Path Link DC: How to Offer 403(b) Participants a Secure Retirement Income Link DC: Living the Dream: Aon DC and Financial Wellbeing Employee Survey 2018 Link DC: Why Target Date Funds Should be Lower Risk for Populations without Defined Benefit Plans Link Health Care: Managing Health Care Reserves: Aligning Operating Assets with Broader Organizational Goals Link Non-Profit: Key Components of Effective Investment Policy Statements for Non-Profit Organizations Link Private DB: Retiree Lump Sum Windows Back on the Table -Navigating Risk Management Options (webinar replay)Link Thought Leadership Hub https://retirement-investment-insights.aon.com/ Opinions,estimates,forecasts,and statements on financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice.The views and strategies described may not be suitable for all investors.References to specific securities,asset classes,and financial markets are for illustrative purposes only and are not intended to be,and should not be interpreted as,recommendations. Page 3 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Market Highlights 13.6%14.6% 10.0%9.9% 2.9% 4.6% 7.9%7.3%6.3% 9.5% 2.0% -3.7% -7.4% 4.5% 6.2%4.6%5.9% -5.3% -1 0.0% -5 .0% 0.0% 5.0% 10 .0% 15 .0% 20 .0% S&P 500 Russell 2000 MSCI EAFE MSCI Emerging Mark et s Bloo mberg Barclays U.S. Aggregate Bloo mberg Barcla ys U.S. Lo ng G ov 't Bloo mberg Barclays U.S. Lo ng C re dit Bloo mberg Barclays U.S. High Yield Bloo mberg Commodity Index SHORT TERM RETURNS AS OF 03/31/2019 First Qua rt er 201 9 On e-Year Sourc e:Rus sell, MSCI, Bloomberg Barc lays, Bloomberg 10.9% 7.1% 2.3%3.7%2.7% 5.4%5.4%4.7% -8.9% 15.9%15.4% 9.0%8.9% 3.8%5.2% 9.0% 11.3% -2.6% -1 5.0% -1 0.0% -5 .0% 0.0% 5.0% 10 .0% 15 .0% 20 .0% S&P 500 Russell 2000 MSCI EAFE MSCI Emerging Mark et s Bloo mberg Barclays U.S. Aggregate Bloo mberg Barcla ys U.S. Lo ng G ov 't Bloo mberg Barclays U.S. Lo ng C re dit Bloo mberg Barclays U.S. High Yield Bloo mberg Commodity Index LONG TERM ANNUALIZE D RETURNS AS OF 03/31/2019 Five-Year Ten-Year Sourc e:Rus sell, MSCI, Bloomberg Barc lays, Bloomberg Page 4 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Market Highlights First Quarter 1-Year 3-Year1 5-Year1 10-Year1 Equity MSCI All Country W orld IMI 12.29%1.89%10.58%6.33%12.27% MSCI All Country W orld 12.18%2.60%10.67%6.45%11.98% Dow J ones U.S. Total Stock Market 14.04%8.66%13.45%10.29%16.01% Russell 3000 14.04%8.77%13.48%10.36%16.00% S&P 500 13.65%9.50%13.51%10.91%15.92% Russell 2000 14.58%2.05%12.92%7.05%15.36% MSCI All Country W orld ex-U.S. IMI 10.30%-4.96%7.94%2.66%9.20% MSCI All Country W orld ex-U.S.10.31%-4.22%8.09%2.57%8.85% MSCI EAFE 9.98%-3.71%7.27%2.33%8.96% MSCI EAFE (Local Currency)10.59%2.83%8.53%5.98%9.75% MSCI Emerging Markets 9.92%-7.41%10.68%3.68%8.94% Fixed Income Bloomberg Barclays Global Aggr egate 2.20%-0.38%1.49%1.04%3.05% Bloomberg Barclays U.S. Aggregate 2.94%4.48%2.03%2.74%3.77% Bloomberg Barclays U.S. Long Gov't 4.64%6.20%1.54%5.43%5.19% Bloomberg Barclays U.S. Long Credit 7.86%4.58%5.21%5.38%9.00% Bloomberg Barclays U.S. Long Gov't/Credit 6.45%5.24%3.75%5.35%7.23% Bloomberg Barclays U.S. TIPS 3.19%2.70%1.70%1.94%3.41% Bloomberg Barclays U.S. High Yield 7.26%5.93%8.56%4.68%11.26% Bloomberg Barclays Global Treasury ex U.S.1.39%-3.81%0.91%0.09%2.18% JP Morgan EMBI Global (Emerging Markets)6.59%3.52%5.20%4.80%8.12% Commo dities Bloomberg Commodity Index 6.32%-5.25%2.22%-8.92%-2.56% Goldman Sachs Commo dity Inde x 14.97%-3.04%6.18%-12.61%-3.37% Hedge Funds HFRI Fund-Weighted Compo site2 5.88%0.90%5.12%3.06%5.48% HFRI Fund of Funds 2 4.99%0.49%4.05%2.27%3.58% Real Estate NAREIT U.S. Equity REITS 16.33%20.86%6.13%9.12%18.28% NCREIF NFI - ODCE 1.42%7.52%7.97%10.17%8.74% FTSE Glo ba l Core Infrastructur e Index 14.30%17.72%11.34%8.69%12.92% Private Equity Burgiss Private iQ Global Private Equi ty3 0.00%17.51%12.00%13.67%9.75% MSCI Indices show net total returns. All othe r indices show gross total returns . 1 Periods are annua lized. 2 Latest 5 months of HFR data are estimated by HFR and may change in the future. 3 Burgiss Private iQ Global Private Equity data is as at June 30, 2018 Returns of the Major Capital Markets Period Ending 03/31/2019 Page 5 This Page Left Blank Intentionally Page 6 Total Plan Page 7 Change in Market Value From January 1, 2019 to March 31, 2019 Summary of Cash Flow $0.0 $150.0 $300.0 $450.0 ($150.0)Millions ($)Beginning Market Value Net Additions / Withdrawals Investment Earnings Ending Market Value $261.1 ($5.1) $19.3 $275.2 1 Quarter Total Pension Beginning Market Value 261,070,784 + Additions / Withdrawals -5,130,080 + Investment Earnings 19,266,312 = Ending Market Value 275,207,015 Total Pension Total Plan Asset Summary As of March 31, 2019 Page 8 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - 15 Years Total Pension Policy Benchmark 0.0 4.0 8.0 12.0 16.0 Return1 Quarter 1 Year 3 Years 5 Years 10 Years Inception 1/1/93 7.8 3.0 6.7 4.3 8.5 7.5 2.8 6.4 4.1 8.1 7.2 Total Pension Benchmark 0.96 1.00 1.04 1.08 3/04 9/05 3/07 9/08 3/10 9/11 3/13 9/14 3/16 9/17 3/19 0.98 Quarterly Out Performance Quarterly Under Performance 0.0% 0.7% 1.4% -0.7 % -1.4 % -2.1 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Total Plan Performance Summary As of March 31, 2019Total Pension Page 9 Allocation Market Value ($) %Policy(%) Performance(%) 1 Quarter 1 Year 3 Years 5 Years 10 Years Since Inception Inception Date Total Pension 275,207,015 100.0 100.0 7.5 (85)2.8 (76)6.4 (91)4.1 (90)8.1 (93)7.2 (36)01/01/1993 Policy Benchmark 7.8 (84)3.0 (67)6.7 (86)4.3 (89)8.5 (89) All Public Plans < $1B-Total Fund Median 9.1 4.0 8.1 5.6 9.6 7.0 Total Domestic Equity 94,852,384 34.5 14.6 (15)8.0 (34)12.6 (60)9.5 (48)11.4 (53)09/01/2013 Russell 3000 Index 14.0 (42)8.8 (25)13.5 (29)10.4 (19)12.2 (16) All Public Plans-US Equity Segment Median 13.8 7.3 12.9 9.4 11.4 Total Large-Cap Equity 68,881,257 25.0 25.0 14.0 (46)9.2 (26)12.5 (41)10.0 (27)14.5 (67)9.0 (66)06/01/2003 Russell 1000 Index 14.0 (46)9.3 (25)13.5 (30)10.6 (19)16.0 (32)9.5 (50) IM U.S. Equity (SA+CF) Median 13.7 5.0 11.7 8.1 15.2 9.4 BlackRock Russell 1000 Index Fund Non-Lending 68,881,257 25.0 14.0 (46)9.4 (25)11.1 (29)03/01/2017 Russell 1000 Index 14.0 (46)9.3 (25)11.2 (29) IM U.S. Equity (SA+CF) Median 13.7 5.0 8.1 Total Small-Cap Equity 25,971,127 9.4 10.0 16.5 (21)4.7 (53)13.2 (33)8.0 (51)16.0 (34)11.1 (17)06/01/2003 Russell 2000 Index 14.6 (38)2.0 (67)12.9 (35)7.1 (64)15.4 (48)9.7 (45) IM U.S. Equity (SA+CF) Median 13.7 5.0 11.7 8.1 15.2 9.4 Kennedy Mid Cap Value 12,729,083 4.6 12.4 (69)-1.9 (86)9.9 (70)6.4 (73)14.8 (62)9.4 (33)02/01/2008 Russell Midcap Value Index 14.4 (41)2.9 (63)9.5 (74)7.2 (61)16.4 (27)8.6 (50) IM U.S. Equity (SA+CF) Median 13.7 5.0 11.7 8.1 15.2 8.6 TimesSquare Small Cap Growth 13,242,044 4.8 20.5 (8)11.4 (20)16.4 (14)9.3 (32)17.0 (17)10.5 (4)02/01/2002 Russell 2000 Growth Index 17.1 (20)3.9 (58)14.9 (21)8.4 (42)16.5 (22)8.4 (31) IM U.S. Equity (MF) Median 13.6 5.2 11.0 7.8 14.8 7.6 Total International Equity 48,223,702 17.5 18.0 9.9 (91)-5.6 (74)6.8 (96)2.2 (95)4.0 (99)09/01/2013 MSCI AC World ex USA Index (Net)10.3 (75)-4.2 (42)8.1 (52)2.6 (79)4.5 (87) All Public Plans-Intl. Equity Segment Median 10.8 -4.7 8.1 3.2 5.2 Morgan Stanley International Equity 32,261,303 11.7 11.2 (38)-2.6 (18)6.5 (69)2.1 (65)8.2 (73)4.4 (69)04/01/2005 MSCI EAFE Index (Net)10.0 (59)-3.7 (24)7.3 (54)2.3 (60)9.0 (56)4.4 (67) IM International Equity (MF) Median 10.4 -6.8 7.4 2.8 9.2 5.1 Morgan Stanley Emerging Markets Fund I 15,962,399 5.8 7.3 (83)-12.9 (80)6.9 (77)1.9 (69)8.3 (63)6.5 (61)04/01/2005 MSCI Emerging Markets Index (Net)9.9 (55)-7.4 (34)10.7 (34)3.7 (36)8.9 (52)7.3 (41) IM Emerging Markets Equity (MF) Median 10.2 -9.1 9.4 3.1 9.0 6.9 Asset Allocation & Performance As of March 31, 2019 Page 10 Asset Allocation & Performance As of March 31, 2019 Allocation Market Value ($) %Policy(%) Performance(%) 1 Quarter 1 Year 3 Years 5 Years 10 Years Since Inception Inception Date Total Fixed Income 94,720,773 34.4 35.0 3.2 (58)2.1 (96)2.7 (57)2.1 (83)4.9 (55)4.3 (53)07/01/2003 Blmbg. Barc. Intermed. U.S. Government/Credit 2.3 (86)4.2 (34)1.7 (87)2.1 (83)3.1 (95)3.3 (96) All Public Plans-US Fixed Income Segment Median 3.4 4.0 2.9 2.9 5.0 4.4 Income Research 38,432,480 14.0 2.5 (99)4.5 (40)1.8 (99)2.1 (97)4.1 (92)4.5 (96)07/01/2001 Blmbg. Barc. Intermed. U.S. Government/Credit 2.3 (99)4.2 (61)1.7 (100)2.1 (97)3.1 (100)4.0 (99) IM U.S. Broad Market Core+ Fixed Income (SA+CF) Median 3.6 4.4 3.0 3.0 5.6 5.1 Prudential Core Plus Bond 35,275,680 12.8 4.1 (26)5.0 (8)4.1 (18)3.7 (10)06/01/2015 Blmbg. Barc. U.S. Aggregate 2.9 (89)4.5 (40)2.0 (94)2.3 (83) IM U.S. Broad Market Core+ Fixed Income (SA+CF) Median 3.6 4.4 3.0 2.7 Brandywine Global Opportunistic Fixed Income 21,012,613 7.6 3.2 (63)-5.8 (95)2.3 (72)1.6 (61)6.6 (32)5.0 (36)01/01/2005 FTSE World Government Bond Index 1.7 (92)-1.6 (77)1.0 (93)0.6 (87)2.2 (96)2.6 (91) IM Global Fixed Income (SA+CF) Median 3.7 1.5 3.4 2.1 4.7 4.2 Hedge Fund 1,285,062 0.5 0.0 Entrust Capital Diversified Fund 1,285,062 0.5 Real Estate 33,713,856 12.3 12.0 0.5 4.8 5.3 7.5 6.9 5.7 06/01/2006 NCREIF Property Index 1.8 6.8 7.1 9.1 8.5 7.6 UBS Trumbull Property Fund 33,713,856 12.3 0.5 4.8 5.3 7.5 6.9 5.7 06/01/2006 NCREIF Property Index 1.8 6.8 7.1 9.1 8.5 7.6 Cash Account 2,411,239 0.9 0.0 0.6 2.2 1.3 0.8 0.4 1.4 07/01/2003 ICE BofAML 3 Month U.S. T-Bill 0.6 2.1 1.2 0.7 0.4 1.3 **The EnTrust Capital Diversified Fund is currently in the process of liquidation Page 11 Performance(%) 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Total Pension -4.3 12.3 5.1 -0.7 2.9 10.9 12.1 1.2 11.2 20.2 Policy Benchmark -4.5 12.2 6.6 -1.4 3.5 12.3 11.6 1.1 11.5 19.5 Total Domestic Equity -6.1 20.1 9.6 1.9 10.1 ----- Russell 3000 Index -5.2 21.1 12.7 0.5 12.6 ----- Total Large-Cap Equity -4.8 20.4 7.9 3.9 10.9 32.0 14.0 2.4 12.4 25.5 Russell 1000 Index -4.8 21.7 12.1 0.9 13.2 33.1 16.4 1.5 16.1 28.4 BlackRock Russell 1000 Index Fund Non-Lending -4.8 --------- Russell 1000 Index -4.8 --------- Total Small-Cap Equity -9.5 19.6 15.6 -4.8 7.2 40.3 13.3 0.8 26.8 35.3 Russell 2000 Index -11.0 14.6 21.3 -4.4 4.9 38.8 16.3 -4.2 26.9 27.2 Kennedy Mid Cap Value -14.5 18.0 22.9 -9.9 15.8 33.3 13.6 -0.8 27.0 34.8 Russell Midcap Value Index -12.3 13.3 20.0 -4.8 14.7 33.5 18.5 -1.4 24.8 34.2 TimesSquare Small Cap Growth -4.2 21.1 8.4 1.0 -2.5 47.7 13.1 2.6 27.3 35.7 Russell 2000 Growth Index -9.3 22.2 11.3 -1.4 5.6 43.3 14.6 -2.9 29.1 34.5 Total International Equity -14.6 28.0 0.3 -2.0 -5.5 ----- MSCI AC World ex USA Index (Net)-14.2 27.2 4.5 -5.7 -3.9 ----- Morgan Stanley International Equity -13.8 25.2 -2.0 0.4 -6.1 20.3 19.6 -7.6 6.1 21.6 MSCI EAFE Index (Net)-13.8 25.0 1.0 -0.8 -4.9 22.8 17.3 -12.1 7.8 31.8 Morgan Stanley Emerging Markets Fund I -17.3 35.0 6.7 -10.3 -4.5 -0.8 20.2 -18.4 18.5 69.5 MSCI Emerging Markets Index (Net)-14.6 37.3 11.2 -14.9 -2.2 -2.6 18.2 -18.4 18.9 78.5 Asset Allocation & Performance As of March 31, 2019 Page 12 Asset Allocation & Performance As of March 31, 2019 Performance(%) 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Total Fixed Income -1.0 6.3 4.2 -2.1 2.4 -1.7 10.9 3.8 8.7 18.9 Blmbg. Barc. Intermed. U.S. Government/Credit 0.9 2.1 2.1 1.1 3.1 -0.9 3.9 5.8 5.9 5.2 Income Research 0.8 2.0 2.3 0.9 3.3 -0.9 5.9 5.6 6.2 14.4 Blmbg. Barc. Intermed. U.S. Government/Credit 0.9 2.1 2.1 1.1 3.1 -0.9 3.9 5.8 5.9 5.2 Prudential Core Plus Bond -0.4 6.6 5.8 ------- Blmbg. Barc. U.S. Aggregate 0.0 3.5 2.6 ------- Brandywine Global Opportunistic Fixed Income -5.2 12.8 5.2 -8.4 6.3 -3.5 14.1 8.0 13.9 20.5 FTSE World Government Bond Index -0.8 7.5 1.6 -3.6 -0.5 -4.0 1.6 6.4 5.2 2.6 Hedge Fund Entrust Capital Diversified Fund Real Estate 6.0 5.3 6.0 ------- NCREIF Property Index 6.7 7.0 8.0 ------- UBS Trumbull Property Fund 6.0 5.3 6.0 11.7 10.4 9.2 9.0 12.1 15.9 -22.9 NCREIF Property Index 6.7 7.0 8.0 13.3 11.8 11.0 10.5 14.3 13.1 -16.8 Cash Account 2.0 1.0 0.3 0.0 0.0 0.0 0.1 0.0 0.1 0.5 ICE BofAML 3 Month U.S. T-Bill 1.9 0.9 0.3 0.1 0.0 0.1 0.1 0.1 0.1 0.2 Page 13 -22.0 -16.0 -10.0 -4.0 2.0 8.0 14.0 20.0 26.0 32.0 Return1 Quarter 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Total Pension 7.5 (85)2.8 (76)6.4 (91)4.1 (90)8.1 (93)-4.3 (31)12.3 (83)5.1 (92)¢ Policy Benchmark 7.8 (84)3.0 (67)6.7 (86)4.3 (89)8.5 (89)-4.5 (35)12.2 (86)6.6 (64)˜ 5th Percentile 10.7 6.2 9.9 6.9 11.2 -1.1 18.7 9.9 1st Quartile 9.6 4.9 8.6 6.1 10.3 -4.0 16.0 8.0 Median 9.1 4.0 8.1 5.6 9.6 -5.1 14.5 7.1 3rd Quartile 8.3 2.8 7.3 4.9 9.0 -5.8 13.0 6.2 95th Percentile 5.9 1.4 4.9 3.6 7.6 -7.5 9.2 4.5 Population 155 153 148 141 120 182 199 194 Plan Sponsor Peer Group Analysis As of March 31, 2019 All Public Plans < $1B-Total Fund Parentheses contain percentile rankings. Page 14 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Total Pension Policy Benchmark FTSE 3 Month T-Bill -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Return (%)0.0 2.0 4.0 6.0 8.0 10.0 Risk (Standard Deviation %) Total Pension Policy Benchmark 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 12/97 12/99 12/01 12/03 12/05 12/07 12/09 12/11 12/13 12/15 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Total Pension -0.22 0.80 -0.27 0.98 0.59 -0.17 0.99 4.09 5.85 0.99 Policy Benchmark 0.00 0.00 N/A 1.00 0.63 0.00 1.00 4.32 5.85 1.00 FTSE 3 Month T-Bill -3.68 5.84 -0.63 0.00 N/A 0.72 0.00 0.72 0.23 0.04 Total Pension Risk Profile As of March 31, 2019Total Pension Page 15 Market Value ($) Current Allocation (%) Target Allocation (%) Minimum Allocation (%) Maximum Allocation (%) Differences (%) Total Pension 275,207,015 100.0 100.0 N/A N/A 0.0 Total Large-Cap Equity 68,881,257 25.0 25.0 20.0 30.0 0.0 Total Small-Cap Equity 25,971,127 9.4 10.0 5.0 15.0 -0.6 Total International Equity 48,223,702 17.5 18.0 13.0 23.0 -0.5 Total Fixed Income 94,720,773 34.4 35.0 30.0 40.0 -0.6 Hedge Fund 1,285,062 0.5 0.0 0.0 0.0 0.5 Real Estate 33,713,856 12.3 12.0 7.0 17.0 0.3 Cash Account 2,411,239 0.9 0.0 0.0 0.0 0.9 Target Allocation Actual Allocation Allocation Differences 0.0%10.0%20.0%30.0%40.0%50.0%-10.0 %-20.0 % Cash Account $2,411.2K Real Estate $33,713.9K Hedge Fund $1,285.1K Total Fixed Income $94,720.8K Total International Equity $48,223.7K Total Small-Cap Equity $25,971.1K Total Large-Cap Equity $68,881.3K 0.0% 12.0% 0.0% 35.0% 18.0% 10.0% 25.0% 0.9% 12.3% 0.5% 34.4% 17.5% 9.4% 25.0% 0.9% 0.3% 0.5% -0.6 % -0.5 % -0.6 % 0.0% Total Pension Asset Allocation Compliance As of March 31, 2019 Page 16 Total Domestic Equity Page 17 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years Current Allocation Total Domestic Equity Russell 3000 Index 0.0 6.0 12.0 18.0 24.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years Inception 9/1/13 14.0 14.0 8.8 13.5 10.4 12.2 14.6 14.6 8.0 12.6 9.5 11.4 March 31, 2019 : $95M TimesSquare Small Cap Growth:14.0% Kennedy Mid Cap Value:13.4% BlackRock Russell 1000 Index Fund Non-Lending:72.6% Total Domestic Equity Benchmark 0.93 0.96 0.99 1.02 1.05 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 0.96 Quarterly Out Performance Quarterly Under Performance 0.0% 2.0% 4.0% -2.0 % -4.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Total Domestic Equity Portfolio Overview As of March 31, 2019Total Domestic Equity Page 18 -28.0 -20.0 -12.0 -4.0 4.0 12.0 20.0 28.0 36.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 2018 2017 2016 Total Domestic Equity 14.6 (15)14.6 (15)8.0 (34)12.6 (60)9.5 (48)-6.1 (50)20.1 (48)9.6 (95)¢ Russell 3000 Index 14.0 (42)14.0 (42)8.8 (25)13.5 (29)10.4 (19)-5.2 (28)21.1 (27)12.7 (49)˜ 5th Percentile 15.8 15.8 11.0 14.4 10.8 -4.0 23.8 15.9 1st Quartile 14.4 14.4 8.7 13.6 10.1 -5.1 21.2 13.9 Median 13.8 13.8 7.3 12.9 9.4 -6.1 20.0 12.7 3rd Quartile 13.2 13.2 6.1 12.0 8.6 -7.0 18.4 11.5 95th Percentile 11.2 11.2 3.3 10.3 6.7 -9.5 16.4 8.7 Population 70 70 69 63 60 71 84 77 Plan Sponsor Peer Group Analysis As of March 31, 2019 All Public Plans-US Equity Segment Parentheses contain percentile rankings. Page 19 Annualized Return vs. Annualized Standard Deviation 3 Years Rolling 3 Years Standard Deviation 3 Years Historical Statistics Total Domestic Equity Russell 3000 Index FTSE 3 Month T-Bill -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Return (%)0.0 3.0 6.0 9.0 12.0 15.0 18.0 Risk (Standard Deviation %) Total Domestic Equity Russell 3000 Index 0.0 3.0 6.0 9.0 12.0 15.0 18.0 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Total Domestic Equity -0.74 1.54 -0.48 0.98 1.01 -0.89 1.01 12.63 11.32 0.99 Russell 3000 Index 0.00 0.00 N/A 1.00 1.09 0.00 1.00 13.49 11.09 1.00 FTSE 3 Month T-Bill -12.16 11.12 -1.09 0.01 N/A 1.20 0.00 1.17 0.22 -0.10 Total Domestic Equity Risk Profile As of March 31, 2019Total Domestic Equity Page 20 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information BlackRock Russell 1000 Index Fund Non-Lending Russell 1000 Index 0.0 6.0 12.0 18.0 24.0 Return1 Quarter Year To Date 1 Year Inception 3/1/17 14.0 14.0 9.3 11.2 14.0 14.0 9.4 11.1 Account Name:BlackRock Russell 1000 Index Fund Non-Lending Inception Date:03/01/2017 Account Structure:Commingled Fund Asset Class:US Equity Benchmark:Russell 1000 Index Peer Group:IM U.S. Equity (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 0.1% 0.2% -0.1 % -0.2 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 BlackRock Russell 1000 Index Fund Non-Lending Benchmark 0.99 1.00 1.01 2/17 5/17 8/17 11/17 2/18 5/18 8/18 11/18 3/19 1.00 BlackRock Russell 1000 Index Fund Non-Lending Performance Summary As of March 31, 2019BlackRock Russell 1000 Index Fund Non-Lending Page 21 -40.0 -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 Return1 Quarter Year To Date 1 Year 2018 BlackRock Russell 1000 Index Fund Non-Lending 14.0 (46)14.0 (46)9.4 (25)-4.8 (28)¢ Russell 1000 Index 14.0 (46)14.0 (46)9.3 (25)-4.8 (28)˜ 5th Percentile 20.6 20.6 15.7 2.2 1st Quartile 15.9 15.9 9.3 -4.3 Median 13.7 13.7 5.0 -7.9 3rd Quartile 11.8 11.8 0.5 -12.4 95th Percentile 9.1 9.1 -5.5 -18.5 Population 2,231 2,231 2,222 2,327 BlackRock Russell 1000 Index Fund Non-Lending Peer Group Analysis As of March 31, 2019 IM U.S. Equity (SA+CF) Parentheses contain percentile rankings. Page 22 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Kennedy Mid Cap Value Russell Midcap Value Index 0.0 10.0 20.0 30.0 -10.0Return 1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Inception 2/1/08 14.4 14.4 2.9 9.5 7.2 16.4 8.6 12.4 12.4 -1.9 9.9 6.4 14.8 9.4 Account Name:Kennedy Mid Cap Value Inception Date:01/02/2008 Account Structure:Commingled Fund Asset Class:US Equity Benchmark:Russell Midcap Value Index Peer Group:IM U.S. Equity (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 3.0% 6.0% -3.0 % -6.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Kennedy Mid Cap Value Benchmark 0.80 1.00 1.20 1.40 1/08 4/09 7/10 10/11 1/13 4/14 7/15 10/16 1/18 3/19 1.08 Kennedy Mid Cap Value Performance Summary As of March 31, 2019Kennedy Mid Cap Value Page 23 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Kennedy Mid Cap Value 12.4 (69)12.4 (69)-1.9 (86)9.9 (70)6.4 (73)14.8 (62)-14.5 (86)18.0 (52)22.9 (14)¢ Russell Midcap Value Index 14.4 (41)14.4 (41)2.9 (63)9.5 (74)7.2 (61)16.4 (27)-12.3 (75)13.3 (77)20.0 (21)˜ 5th Percentile 20.6 20.6 15.7 19.6 13.2 18.9 2.2 31.7 29.1 1st Quartile 15.9 15.9 9.3 14.1 10.1 16.5 -4.3 23.1 18.7 Median 13.7 13.7 5.0 11.7 8.1 15.2 -7.9 18.3 12.1 3rd Quartile 11.8 11.8 0.5 9.4 6.2 14.0 -12.4 13.6 7.6 95th Percentile 9.1 9.1 -5.5 5.9 2.8 11.7 -18.5 5.7 0.5 Population 2,231 2,231 2,222 2,172 2,092 1,756 2,327 2,511 2,664 Kennedy Mid Cap Value Peer Group Analysis As of March 31, 2019 IM U.S. Equity (SA+CF) Parentheses contain percentile rankings. Page 24 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Kennedy Mid Cap Value Russell Midcap Value Index FTSE 3 Month T-Bill -2.0 0.0 2.0 4.0 6.0 8.0 10.0 Return (%)0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 Risk (Standard Deviation %) Kennedy Mid Cap Value Russell Midcap Value Index 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Kennedy Mid Cap Value -0.61 3.20 -0.19 0.95 0.48 -1.11 1.07 6.41 13.20 0.97 Russell Midcap Value Index 0.00 0.00 N/A 1.00 0.58 0.00 1.00 7.22 12.04 1.00 FTSE 3 Month T-Bill -6.98 12.05 -0.58 0.00 N/A 0.73 0.00 0.72 0.23 -0.03 Kennedy Mid Cap Value Risk Profile As of March 31, 2019Kennedy Mid Cap Value Page 25 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information TimesSquare Small Cap Growth Russell 2000 Growth Index 0.0 8.0 16.0 24.0 32.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Inception 2/1/02 17.1 17.1 3.9 14.9 8.4 16.5 8.4 20.5 20.5 11.4 16.4 9.3 17.0 10.5 Account Name:TimesSquare Small Cap Growth Inception Date:02/01/2002 Account Structure:Mutual Fund Asset Class:US Equity Benchmark:Russell 2000 Growth Index Peer Group:IM U.S. Equity (MF) Quarterly Out Performance Quarterly Under Performance 0.0% 4.0% 8.0% -4.0 % -8.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 TimesSquare Small Cap Growth Benchmark 0.80 1.00 1.20 1.40 1.60 1/02 10/03 7/05 4/07 1/09 10/10 7/12 4/14 1/16 3/19 1.41 TimesSquare Small Cap Growth Performance Summary As of March 31, 2019TimesSquare Small Cap Growth Page 26 -55.0 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 65.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 TimesSquare Small Cap Growth 20.5 (9)20.5 (9)11.4 (21)16.4 (15)9.3 (33)17.0 (21)-4.2 (29)21.1 (37)8.4 (65)¢ Russell 2000 Growth Index 17.1 (20)17.1 (20)3.9 (56)14.9 (21)8.4 (43)16.5 (25)-9.3 (60)22.2 (31)11.3 (54)˜ 5th Percentile 22.4 22.4 17.7 21.3 14.3 20.3 5.1 36.6 31.8 1st Quartile 16.4 16.4 10.0 13.9 10.1 16.4 -3.5 23.8 18.9 Median 13.6 13.6 5.1 11.1 7.8 15.0 -7.6 17.8 11.9 3rd Quartile 11.3 11.3 -0.2 8.2 5.1 13.2 -12.8 11.6 5.9 95th Percentile 0.4 0.4 -11.3 -2.4 -9.3 -2.2 -22.6 -7.0 -9.4 Population 2,744 2,744 2,744 2,744 2,580 1,650 2,770 2,831 2,832 TimesSquare Small Cap Growth Peer Group Analysis As of March 31, 2019 IM U.S. Equity (MF) Parentheses contain percentile rankings. Page 27 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics TimesSquare Small Cap Growth Russell 2000 Growth Index FTSE 3 Month T-Bill -3.0 0.0 3.0 6.0 9.0 12.0 15.0 Return (%)0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 Risk (Standard Deviation %) TimesSquare Small Cap Growth Russell 2000 Growth Index 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation TimesSquare Small Cap Growth 0.62 4.34 0.14 0.94 0.60 1.66 0.89 9.33 15.71 0.97 Russell 2000 Growth Index 0.00 0.00 N/A 1.00 0.52 0.00 1.00 8.41 17.05 1.00 FTSE 3 Month T-Bill -8.84 17.05 -0.52 0.00 N/A 0.72 0.00 0.72 0.23 0.01 TimesSquare Small Cap Growth Risk Profile As of March 31, 2019TimesSquare Small Cap Growth Page 28 Asset Allocation As of 02/28/2019 0.0%50.0%100.0%150.0% Other Convertibles Fixed Income Cash Equities 0.0% 0.0% 1.7% 1.7% 96.6% Fund Characteristics As of 02/28/2019 Total Securities 102 Avg. Market Cap $2,971.23 Million P/E 38.20 P/B 7.77 Div. Yield 1.57% Annual EPS 25.28 5Yr EPS 14.50 3Yr EPS Growth 17.68 Top Ten Securities As of 02/28/2019 Strategic Education Inc ORD 2.54 % TriNet Group Inc ORD 2.32 % RealPage Inc ORD 2.28 % ASGN Inc ORD 2.26 % Q2 Holdings Inc ORD 2.19 % Albany International Corp ORD 1.97 % 2U Inc ORD 1.94 % Paylocity Holding Corp ORD 1.91 % EMCOR Group Inc ORD 1.78 % Clean Harbors Inc ORD 1.68 % Sector/Quality Allocation As of 02/28/2019 0.0%15.0%30.0%45.0% Industrials Information Technology Consumer Discretionary Health Care Financials Energy Consumer Staples Non Classified Equity Telecommunication Services 28.5% 22.7% 14.6% 13.1% 11.6% 2.3% 1.7% 1.4% 0.8% TimesSquare Small Cap Growth Mutual Fund Attributes As of March 31, 2019 Page 29 This Page Left Blank Intentionally Page 30 Total International Equity Page 31 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years Current Allocation Total International Equity MSCI AC World ex USA Index (Net) 0.0 8.0 16.0 24.0 -8.0 -16.0Return 1 Quarter Year To Date 1 Year 3 Years 5 Years Inception 9/1/13 10.3 10.3 -4.2 8.1 2.6 4.5 9.9 9.9 -5.6 6.8 2.2 4.0 March 31, 2019 : $48M Morgan Stanley Emerging Markets Fund I:33.1% Morgan Stanley International Equity:66.9% Total International Equity Benchmark 0.96 1.00 1.04 1.08 1.12 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 0.98 Quarterly Out Performance Quarterly Under Performance 0.0% 3.0% 6.0% -3.0 % -6.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Total International Equity Portfolio Overview As of March 31, 2019Total International Equity Page 32 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 65.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 2018 2017 2016 Total International Equity 9.9 (91)9.9 (91)-5.6 (74)6.8 (96)2.2 (95)-14.6 (61)28.0 (53)0.3 (94)¢ MSCI AC World ex USA Index (Net)10.3 (75)10.3 (75)-4.2 (42)8.1 (52)2.6 (79)-14.2 (52)27.2 (67)4.5 (33)˜ 5th Percentile 13.4 13.4 -0.5 9.7 4.7 -10.8 32.7 8.6 1st Quartile 11.4 11.4 -3.6 8.5 3.7 -13.5 29.5 5.4 Median 10.8 10.8 -4.7 8.1 3.2 -14.1 28.2 3.5 3rd Quartile 10.3 10.3 -5.8 7.6 2.7 -15.0 26.0 2.4 95th Percentile 8.6 8.6 -8.5 6.9 2.2 -17.1 22.3 -0.4 Population 72 72 70 65 59 71 80 78 Plan Sponsor Peer Group Analysis As of March 31, 2019 All Public Plans-Intl. Equity Segment Parentheses contain percentile rankings. Page 33 Annualized Return vs. Annualized Standard Deviation 3 Years Rolling 3 Years Standard Deviation 3 Years Historical Statistics Total International Equity MSCI AC World ex USA Index (Net) FTSE 3 Month T-Bill -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Return (%)0.0 3.0 6.0 9.0 12.0 15.0 Risk (Standard Deviation %) Total International Equity MSCI AC World ex USA Index (Net) 0.0 3.0 6.0 9.0 12.0 15.0 18.0 6/16 12/16 6/17 12/17 6/18 12/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Total International Equity -1.26 3.55 -0.35 0.89 0.57 -0.60 0.92 6.77 10.33 0.94 MSCI AC World ex USA Index (Net)0.00 0.00 N/A 1.00 0.68 0.00 1.00 8.09 10.56 1.00 FTSE 3 Month T-Bill -7.18 10.60 -0.68 0.04 N/A 1.21 0.00 1.17 0.22 -0.19 Total International Equity Risk Profile As of March 31, 2019Total International Equity Page 34 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Morgan Stanley International Equity MSCI EAFE Index (Net) 0.0 8.0 16.0 24.0 -8.0 -16.0Return 1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Inception 4/1/05 10.0 10.0 -3.7 7.3 2.3 9.0 4.4 11.2 11.2 -2.6 6.5 2.1 8.2 4.4 Account Name:Morgan Stanley International Equity Inception Date:04/01/2005 Account Structure:Mutual Fund Asset Class:International Equity Benchmark:MSCI EAFE Index (Net) Peer Group:IM International Equity (MF) Quarterly Out Performance Quarterly Under Performance 0.0% 3.0% 6.0% -3.0 % -6.0 % -9.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Morgan Stanley International Equity Benchmark 0.72 0.81 0.90 0.99 1.08 1.17 3/05 9/06 3/08 9/09 3/11 9/12 3/14 9/15 3/17 3/19 0.99 Morgan Stanley International Equity Performance Summary As of March 31, 2019Morgan Stanley International Equity Page 35 -60.0 -40.0 -20.0 0.0 20.0 40.0 60.0 80.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Morgan Stanley International Equity 11.2 (38)11.2 (38)-2.6 (18)6.5 (69)2.1 (65)8.2 (73)-13.8 (31)25.2 (73)-2.0 (82)¢ MSCI EAFE Index (Net)10.0 (59)10.0 (59)-3.7 (24)7.3 (54)2.3 (60)9.0 (56)-13.8 (31)25.0 (74)1.0 (64)˜ 5th Percentile 16.4 16.4 2.7 14.0 8.0 14.0 -7.6 47.1 18.3 1st Quartile 12.3 12.3 -3.8 9.8 4.3 10.8 -12.9 35.5 8.1 Median 10.4 10.4 -6.8 7.4 2.8 9.2 -15.6 28.6 2.8 3rd Quartile 8.8 8.8 -10.1 6.0 1.3 8.1 -18.5 24.9 -0.8 95th Percentile 5.5 5.5 -15.2 2.7 -1.6 6.2 -23.6 16.6 -6.8 Population 868 868 868 868 790 422 882 904 904 Morgan Stanley International Equity Peer Group Analysis As of March 31, 2019 IM International Equity (MF) Parentheses contain percentile rankings. Page 36 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Morgan Stanley International Equity MSCI EAFE Index (Net) FTSE 3 Month T-Bill 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Return (%)0.0 3.0 6.0 9.0 12.0 15.0 18.0 Risk (Standard Deviation %) Morgan Stanley International Equity MSCI EAFE Index (Net) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Morgan Stanley International Equity -0.31 4.07 -0.08 0.88 0.17 -0.01 0.90 2.07 11.29 0.94 MSCI EAFE Index (Net)0.00 0.00 N/A 1.00 0.19 0.00 1.00 2.33 11.77 1.00 FTSE 3 Month T-Bill -2.27 11.77 -0.19 0.00 N/A 0.72 0.00 0.72 0.23 0.00 Morgan Stanley International Equity Risk Profile As of March 31, 2019Morgan Stanley International Equity Page 37 Asset Allocation As of 02/28/2019 0.0%50.0%100.0%150.0% Other Convertibles Cash Fixed Income Equities 0.0% 0.0% 0.3% 1.8% 97.9% Fund Characteristics As of 02/28/2019 Total Securities 60 Avg. Market Cap $77,114.15 Million P/E 21.68 P/B 4.82 Div. Yield 2.74% Annual EPS 24.02 5Yr EPS 11.53 3Yr EPS Growth 12.21 Top Ten Securities As of 02/28/2019 Reckitt Benckiser Group PLC ORD 4.30 % Unilever NV DR 4.13 % Novartis AG ORD 3.41 % SAP SE ORD 3.40 % Relx PLC ORD 3.38 % GlaxoSmithKline PLC ORD 3.20 % Kirin Holdings Co Ltd ORD 3.16 % Pernod Ricard SA ORD 2.96 % AIA Group Ltd ORD 2.93 % Sanofi SA ORD 2.91 % Sector/Quality Allocation As of 02/28/2019 0.0%15.0%30.0%45.0%60.0% Consumer Staples Health Care Financials Industrials Information Technology Energy Consumer Discretionary Non Classified Equity Materials Telecommunication Services 33.5% 16.5% 15.0% 11.9% 7.9% 5.1% 4.0% 1.7% 1.3% 1.0% Morgan Stanley International Equity Mutual Fund Attributes As of March 31, 2019 Page 38 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Morgan Stanley Emerging Markets Fund I MSCI Emerging Markets Index (Net) 0.0 15.0 30.0 -15.0 -30.0Return 1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Inception 4/1/05 9.9 9.9 -7.4 10.7 3.7 8.9 7.37.3 7.3 -12.9 6.9 1.9 8.3 6.5 Account Name:Morgan Stanley Emerging Markets Fund I Inception Date:04/01/2005 Account Structure:Mutual Fund Asset Class:International Equity Benchmark:MSCI Emerging Markets Index (Net) Peer Group:IM Emerging Markets Equity (MF) Quarterly Out Performance Quarterly Under Performance 0.0% 4.0% 8.0% -4.0 % -8.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Morgan Stanley Emerging Markets Fund I Benchmark 0.81 0.90 0.99 1.08 1.17 3/05 9/06 3/08 9/09 3/11 9/12 3/14 9/15 3/17 3/19 0.90 Morgan Stanley Emerging Markets Fund I Performance Summary As of March 31, 2019Morgan Stanley Emerging Markets Fund I Page 39 -55.0 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 65.0 80.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Morgan Stanley Emerging Markets Fund I 7.3 (83)7.3 (83)-12.9 (80)6.9 (77)1.9 (69)8.3 (63)-17.3 (62)35.0 (50)6.7 (62)¢ MSCI Emerging Markets Index (Net)9.9 (55)9.9 (55)-7.4 (34)10.7 (34)3.7 (36)8.9 (52)-14.6 (34)37.3 (38)11.2 (37)˜ 5th Percentile 15.6 15.6 -1.7 14.1 6.2 13.2 -8.6 46.6 25.5 1st Quartile 12.1 12.1 -6.3 11.2 4.1 10.2 -13.5 39.6 12.7 Median 10.2 10.2 -9.1 9.4 3.1 9.0 -16.0 34.9 9.3 3rd Quartile 7.9 7.9 -12.4 7.1 1.2 7.8 -18.7 28.4 4.4 95th Percentile 4.4 4.4 -16.6 2.5 -3.1 6.3 -23.4 19.7 -3.7 Population 230 230 230 230 207 84 233 240 240 Morgan Stanley Emerging Markets Fund I Peer Group Analysis As of March 31, 2019 IM Emerging Markets Equity (MF) Parentheses contain percentile rankings. Page 40 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Morgan Stanley Emerging Markets Fund I MSCI Emerging Markets Index (Net) FTSE 3 Month T-Bill -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Return (%)0.0 4.0 8.0 12.0 16.0 20.0 24.0 Risk (Standard Deviation %) Morgan Stanley Emerging Markets Fund I MSCI Emerging Markets Index (Net) 0.0 6.0 12.0 18.0 24.0 30.0 36.0 42.0 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Morgan Stanley Emerging Markets Fund I -1.91 4.07 -0.47 0.93 0.15 -1.30 0.87 1.93 13.77 0.97 MSCI Emerging Markets Index (Net)0.00 0.00 N/A 1.00 0.26 0.00 1.00 3.68 15.25 1.00 FTSE 3 Month T-Bill -4.03 15.25 -0.26 0.00 N/A 0.72 0.00 0.72 0.23 0.02 Morgan Stanley Emerging Markets Fund I Risk Profile As of March 31, 2019Morgan Stanley Emerging Markets Fund I Page 41 Asset Allocation As of 02/28/2019 0.0%50.0%100.0%150.0% Other Convertibles Fixed Income Cash Equities 0.0% 0.0% 1.1% 1.5% 97.4% Fund Characteristics As of 02/28/2019 Total Securities 123 Avg. Market Cap $86,582.21 Million P/E 22.42 P/B 4.10 Div. Yield 2.72% Annual EPS 22.49 5Yr EPS 12.32 3Yr EPS Growth 12.77 Top Ten Securities As of 02/28/2019 Taiwan Semiconductor Manufacturing 4.67 % Tencent Holdings Ltd ORD 4.06 % Samsung Electronics Co Ltd ORD 3.14 % Alibaba Group Holding Ltd DR 3.07 % China Construction Bank Corp ORD 2.91 % Morgan Stanley Inst Liq Govt Port;Instit 2.38 % Bank of China Ltd ORD 2.07 % Itau Unibanco Holding SA PFD 1.63 % Fomento Economico Mexicano SAB 1.59 % Bank Central Asia Tbk PT ORD 1.58 % Sector/Quality Allocation As of 02/28/2019 0.0%15.0%30.0%45.0%60.0% Financials Information Technology Consumer Staples Consumer Discretionary Industrials Energy Telecommunication Services Materials Health Care Utilities 33.2% 16.4% 14.3% 14.1% 5.8% 5.2% 2.9% 2.6% 2.3% 0.8% Morgan Stanley Emerging Markets Fund I Mutual Fund Attributes As of March 31, 2019 Page 42 Total Fixed Income Page 43 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years Current Allocation Total Fixed Income Blmbg. Barc. Intermed. U.S. Government/Credit 0.0 2.0 4.0 6.0 8.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Inception 7/1/03 2.3 2.3 4.2 1.7 2.1 3.1 3.33.2 3.2 2.1 2.7 2.1 4.9 4.3 March 31, 2019 : $95M Income Research:40.6% Brandywine Global Opportunistic Fixed Income:22.2% Prudential Core Plus Bond:37.2% Total Fixed Income Benchmark 0.96 1.00 1.04 1.08 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 1.00 Quarterly Out Performance Quarterly Under Performance 0.0% 2.0% 4.0% -2.0 % -4.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Total Fixed Income Portfolio Overview As of March 31, 2019Total Fixed Income Page 44 -10.0 -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Total Fixed Income 3.2 (58)3.2 (58)2.1 (96)2.7 (57)2.1 (83)4.9 (55)-1.0 (71)6.3 (14)4.2 (55)¢ Blmbg. Barc. Intermed. U.S. Government/Credit 2.3 (86)2.3 (86)4.2 (34)1.7 (87)2.1 (83)3.1 (95)0.9 (9)2.1 (90)2.1 (86)˜ 5th Percentile 5.2 5.2 5.1 5.0 4.5 8.3 1.3 7.3 8.4 1st Quartile 3.9 3.9 4.3 3.9 3.7 5.9 0.2 5.5 6.2 Median 3.4 3.4 4.0 2.9 2.9 5.0 -0.5 4.4 4.5 3rd Quartile 2.9 2.9 3.6 2.1 2.5 3.9 -1.2 3.1 2.8 95th Percentile 2.0 2.0 2.2 0.8 0.9 3.1 -4.0 2.0 0.9 Population 75 75 74 71 68 45 75 82 83 Plan Sponsor Peer Group Analysis As of March 31, 2019 All Public Plans-US Fixed Income Segment Parentheses contain percentile rankings. Page 45 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Total Fixed Income Blmbg. Barc. Intermed. U.S. Government/Credit FTSE 3 Month T-Bill 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Return (%)0.0 0.7 1.4 2.1 2.8 3.5 4.2 4.9 Risk (Standard Deviation %) Total Fixed Income Blmbg. Barc. Intermed. U.S. Government/Credit 0.0 2.0 4.0 6.0 8.0 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Total Fixed Income 0.03 2.34 0.01 0.58 0.41 -0.53 1.26 2.11 3.50 0.76 Blmbg. Barc. Intermed. U.S. Government/Credit 0.00 0.00 N/A 1.00 0.67 0.00 1.00 2.12 2.10 1.00 FTSE 3 Month T-Bill -1.40 2.09 -0.67 0.01 N/A 0.70 0.01 0.72 0.23 0.10 Total Fixed Income Risk Profile As of March 31, 2019Total Fixed Income Page 46 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Income Research Blmbg. Barc. Intermed. U.S. Government/Credit 0.0 2.0 4.0 6.0 8.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Inception 7/1/01 2.3 2.3 4.2 1.7 2.1 3.1 4.0 2.5 2.5 4.5 1.8 2.1 4.1 4.5 Account Name:Income Research Inception Date:07/01/2001 Account Structure:Commingled Fund Asset Class:US Fixed Income Benchmark:Blmbg. Barc. Intermed. U.S. Government/Credit Peer Group:IM U.S. Broad Market Core+ Fixed Income (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 0.3% 0.6% -0.3 % -0.6 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Income Research Benchmark 0.96 1.02 1.08 1.14 1.20 6/01 3/03 12/04 9/06 6/08 3/10 12/11 9/13 6/15 3/17 3/19 1.09 Income Research Performance Summary As of March 31, 2019Income Research Page 47 -10.0 -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Income Research 2.5 (99)2.5 (99)4.5 (40)1.8 (99)2.1 (97)4.1 (92)0.8 (5)2.0 (100)2.3 (97)¢ Blmbg. Barc. Intermed. U.S. Government/Credit 2.3 (99)2.3 (99)4.2 (61)1.7 (100)2.1 (97)3.1 (100)0.9 (5)2.1 (100)2.1 (98)˜ 5th Percentile 5.6 5.6 5.0 5.9 4.1 8.6 0.8 7.5 10.0 1st Quartile 4.1 4.1 4.7 3.8 3.4 6.4 -0.2 5.2 5.8 Median 3.6 3.6 4.4 3.0 3.0 5.6 -0.7 4.5 4.4 3rd Quartile 3.2 3.2 4.0 2.5 2.7 4.8 -1.2 3.8 3.3 95th Percentile 2.7 2.7 3.1 2.0 2.2 3.8 -2.9 3.1 2.4 Population 145 145 144 141 138 122 150 161 165 Income Research Peer Group Analysis As of March 31, 2019 IM U.S. Broad Market Core+ Fixed Income (SA+CF) Parentheses contain percentile rankings. Page 48 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Income Research Blmbg. Barc. Intermed. U.S. Government/Credit FTSE 3 Month T-Bill 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Return (%)0.0 0.4 0.8 1.2 1.6 2.0 2.4 2.8 3.2 Risk (Standard Deviation %) Income Research Blmbg. Barc. Intermed. U.S. Government/Credit 0.0 0.9 1.8 2.7 3.6 4.5 5.4 6.3 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Income Research 0.01 0.34 0.02 0.98 0.72 0.16 0.93 2.13 1.98 0.99 Blmbg. Barc. Intermed. U.S. Government/Credit 0.00 0.00 N/A 1.00 0.67 0.00 1.00 2.12 2.10 1.00 FTSE 3 Month T-Bill -1.40 2.09 -0.67 0.01 N/A 0.70 0.01 0.72 0.23 0.10 Income Research Risk Profile As of March 31, 2019Income Research Page 49 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Prudential Core Plus Bond Blmbg. Barc. U.S. Aggregate 0.0 2.0 4.0 6.0 8.0 Return1 Quarter Year To Date 1 Year 3 Years Inception 6/1/15 2.9 2.9 4.5 2.0 2.3 4.1 4.1 5.0 4.1 3.7 Account Name:Prudential Core Plus Bond Inception Date:06/01/2015 Account Structure:Commingled Fund Asset Class:US Fixed Income Benchmark:Blmbg. Barc. U.S. Aggregate Peer Group:IM U.S. Broad Market Core+ Fixed Income (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 0.8% 1.6% 2.4% -0.8 % -1.6 % 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 Prudential Core Plus Bond Benchmark 0.96 1.00 1.04 1.08 1.12 5/15 11/15 5/16 11/16 5/17 11/17 5/18 11/18 3/19 1.05 Prudential Core Plus Bond Performance Summary As of March 31, 2019Prudential Core Plus Bond Page 50 -10.0 -7.0 -4.0 -1.0 2.0 5.0 8.0 11.0 14.0 17.0 Return1 Quarter Year To Date 1 Year 3 Years 2018 2017 2016 Prudential Core Plus Bond 4.1 (26)4.1 (26)5.0 (8)4.1 (18)-0.4 (42)6.6 (12)5.8 (26)¢ Blmbg. Barc. U.S. Aggregate 2.9 (89)2.9 (89)4.5 (40)2.0 (94)0.0 (15)3.5 (85)2.6 (92)˜ 5th Percentile 5.6 5.6 5.0 5.9 0.8 7.5 10.0 1st Quartile 4.1 4.1 4.7 3.8 -0.2 5.2 5.8 Median 3.6 3.6 4.4 3.0 -0.7 4.5 4.4 3rd Quartile 3.2 3.2 4.0 2.5 -1.2 3.8 3.3 95th Percentile 2.7 2.7 3.1 2.0 -2.9 3.1 2.4 Population 145 145 144 141 150 161 165 Prudential Core Plus Bond Peer Group Analysis As of March 31, 2019 IM U.S. Broad Market Core+ Fixed Income (SA+CF) Parentheses contain percentile rankings. Page 51 Annualized Return vs. Annualized Standard Deviation 3 Years Rolling 3 Years Standard Deviation 3 Years Historical Statistics Prudential Core Plus Bond Blmbg. Barc. U.S. Aggregate FTSE 3 Month T-Bill 0.0 0.8 1.6 2.4 3.2 4.0 4.8 5.6 Return (%)0.0 0.7 1.4 2.1 2.8 3.5 4.2 4.9 Risk (Standard Deviation %) Prudential Core Plus Bond Blmbg. Barc. U.S. Aggregate 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Prudential Core Plus Bond 2.00 0.97 2.07 0.93 0.85 1.79 1.11 4.07 3.42 0.96 Blmbg. Barc. U.S. Aggregate 0.00 0.00 N/A 1.00 0.30 0.00 1.00 2.03 2.97 1.00 FTSE 3 Month T-Bill -0.88 2.94 -0.30 0.04 N/A 1.14 0.01 1.17 0.22 0.20 Prudential Core Plus Bond Risk Profile As of March 31, 2019Prudential Core Plus Bond Page 52 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Brandywine Global Opportunistic Fixed Income FTSE World Government Bond Index 0.0 6.0 12.0 -6.0 -12.0Return 1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Inception 1/1/05 1.7 1.7 -1.6 1.0 0.6 2.2 2.63.2 3.2 -5.8 2.3 1.6 6.6 5.0 Account Name:Brandywine Global Opportunistic Fixed Income Inception Date:01/01/2005 Account Structure:Commingled Fund Asset Class:International Fixed Income Benchmark:FTSE World Government Bond Index Peer Group:IM Global Fixed Income (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 5.0% 10.0% -5.0 % -10.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Brandywine Global Opportunistic Fixed Income Benchmark 0.60 0.90 1.20 1.50 1.80 12/04 6/06 12/07 6/09 12/10 6/12 12/13 6/15 12/16 3/19 1.39 Brandywine Global Opportunistic Fixed Income Performance Summary As of March 31, 2019Brandywine Global Opportunistic Fixed Income Page 53 -22.0 -16.0 -10.0 -4.0 2.0 8.0 14.0 20.0 26.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Brandywine Global Opportunistic Fixed Income 3.2 (63)3.2 (63)-5.8 (95)2.3 (72)1.6 (61)6.6 (32)-5.2 (90)12.8 (5)5.2 (53)¢ FTSE World Government Bond Index 1.7 (92)1.7 (92)-1.6 (77)1.0 (93)0.6 (87)2.2 (96)-0.8 (24)7.5 (44)1.6 (86)˜ 5th Percentile 7.4 7.4 5.6 8.2 5.2 10.6 1.3 11.9 16.0 1st Quartile 5.4 5.4 4.0 5.4 3.8 7.1 -0.9 8.9 10.0 Median 3.7 3.7 1.5 3.4 2.1 4.7 -2.2 7.2 5.4 3rd Quartile 2.6 2.6 -1.4 2.0 1.0 3.6 -4.0 4.9 2.7 95th Percentile 1.4 1.4 -5.8 0.7 -2.3 2.3 -8.2 2.1 -0.5 Population 220 220 219 214 197 121 234 246 262 Brandywine Global Opportunistic Fixed Income Peer Group Analysis As of March 31, 2019 IM Global Fixed Income (SA+CF) Parentheses contain percentile rankings. Page 54 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Brandywine Global Opportunistic Fixed Income FTSE World Government Bond Index FTSE 3 Month T-Bill 0.0 0.4 0.8 1.2 1.6 2.0 2.4 Return (%)0.0 2.0 4.0 6.0 8.0 10.0 12.0 Risk (Standard Deviation %) Brandywine Global Opportunistic Fixed Income FTSE World Government Bond Index 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Brandywine Global Opportunistic Fixed Income 1.17 4.92 0.24 0.57 0.16 1.13 1.07 1.63 7.50 0.76 FTSE World Government Bond Index 0.00 0.00 N/A 1.00 0.00 0.00 1.00 0.59 5.30 1.00 FTSE 3 Month T-Bill -0.01 5.29 0.00 0.01 N/A 0.72 0.00 0.72 0.23 0.09 Brandywine Global Opportunistic Fixed Income Risk Profile As of March 31, 2019Brandywine Global Opportunistic Fixed Income Page 55 This Page Left Blank Intentionally Page 56 Hedge Fund Page 57 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Entrust Capital Diversified Fund HFRI Fund of Funds Composite Index 0.0 5.0 10.0 -5.0 -10.0 -15.0Return 1 Quarter Year To Date 1 Year 3 Years Inception 8/1/15 4.6 4.6 0.1 3.9 1.5 -0.5 -0.5 -6.4 -1.1 -3.9 Account Name:Entrust Capital Diversified Fund Inception Date:08/01/2015 Account Structure:Commingled Fund Asset Class:Hedge Fund Benchmark:HFRI Fund of Funds Composite Index Peer Group: Quarterly Out Performance Quarterly Under Performance 0.0% 3.0% 6.0% -3.0 % -6.0 % -9.0 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 Entrust Capital Diversified Fund Benchmark 0.72 0.81 0.90 0.99 1.08 7/15 1/16 7/16 1/17 7/17 1/18 7/18 3/19 0.82 Entrust Capital Diversified Fund Performance Summary As of March 31, 2019Entrust Capital Diversified Fund Page 58 Real Estate Page 59 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information UBS Trumbull Property Fund NCREIF Property Index 0.0 4.0 8.0 12.0 16.0 Return1 Quarter Year To Date 1 Year 3 Years 5 Years 10 Years Inception 6/1/06 1.8 1.8 6.8 7.1 9.1 8.5 7.6 0.5 0.5 4.8 5.3 7.5 6.9 5.7 Account Name:UBS Trumbull Property Fund Inception Date:06/01/2006 Account Structure:Commingled Fund Asset Class:US Private Real Estate Benchmark:NCREIF Property Index Peer Group: Quarterly Out Performance Quarterly Under Performance 0.0% 0.8% 1.6% -0.8 % -1.6 % -2.4 % 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 3/19 UBS Trumbull Property Fund Benchmark 0.70 0.80 0.90 1.00 1.10 5/06 8/07 11/08 2/10 5/11 8/12 11/13 2/15 5/16 8/17 3/19 0.80 UBS Trumbull Property Fund Performance Summary As of March 31, 2019UBS Trumbull Property Fund Page 60 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics UBS Trumbull Property Fund NCREIF Property Index FTSE 3 Month T-Bill -3.0 0.0 3.0 6.0 9.0 12.0 15.0 Return (%)0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1 2.4 Risk (Standard Deviation %) UBS Trumbull Property Fund NCREIF Property Index 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 6/11 3/12 12/12 9/13 6/14 3/15 12/15 9/16 6/17 3/18 3/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation UBS Trumbull Property Fund -1.55 0.82 -1.90 0.72 3.60 -1.31 0.97 7.47 1.54 0.85 NCREIF Property Index 0.00 0.00 N/A 1.00 4.93 0.00 1.00 9.13 1.34 1.00 FTSE 3 Month T-Bill -8.12 1.64 -4.93 0.47 N/A 2.61 -0.21 0.72 0.41 -0.69 UBS Trumbull Property Fund Risk Profile As of March 31, 2019UBS Trumbull Property Fund Page 61 This Page Left Blank Intentionally Page 62 Market Environment Page 63 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Global Equity Markets Concerns of slowing global growth and trade wars partially eased in the first quarter of 2019, bolstering global equities in the process. In local currency terms, the MSCI AC World Investable Market Index returned 12.3% –not quite fully offsetting the previous quarter's decline. Rising oil prices and encouraging performance from Canadian Financials and Energy, combined with a strengthening of the Canadian dollar against the U.S. dollar resulted in the Canadian equity market being the strongest performer (USD terms) over the quarter. Japanese and European (ex-UK) equities were predominantly boosted by valuation multiple expansion. This came despite deteriorating economic dataflow, with Japanese and eurozone PMIs moving into contractionary territory, weak industrial production and falling inflation. Strong sterling performance over the quarter on the back of increased possibility of a “no deal” Brexit scenario boosted UK equity market returns in USD terms. In local currency terms, however, UK equities largely lagged other markets. 12.3% 10.3% 14.0%12.3% 6.7% 15.2% 11.5%10.5% 12.3% 9.7% 1.9% -5.0% 8.3% -1.1% -8.6% 2.5% 11.5% -5.9% 3.3% -8.0%-1 0% -5 % 0% 5% 10 % 15 % 20 % ACWI IMI 45 .3% ACWI ex-U.S. IMI 54 .7% USA IMI 5.3% UK IMI 7.7% Japan IMI 3.1% Cana da I MI 0.2% Israel I MI 13 .7% Europe ex-UK IMI 3.9% Pacific ex-Japan IMI 11 .5% Emergin g Ma rk et s IMI GLOBAL MS CI IMI INDEX RETURNS (USD) AS OF 03/31/2019 Fir st Qua rt er 201 9 On e-Year Sourc e: MS CI Page 64 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Global Equity Markets The two exhibits on this slide illustrate the percentage that each country/region represents of the global and international equity markets as measured by the MSCI All Country World IMI Index and the MSCI All Country World ex-U.S. IMI Index, respectively. USA 54.7% UK 5.3% Canada 3.1% Pacific ex- Japan 3.9% Japan 7.7% Europ e ex- UK 13.7% Israel 0.2%Latin America 1.4% Asia 8.6% Eastern Europe, Middle East & Africa 1.6% Emerging Markets 11.5% MSCI ALL COUNTRY WORLD IMI INDEX GEOGRAPHIC ALLOCATION AS OF 03/31/2019 Source:MSCI UK 11.8% Canada 6.8% Pacifi c ex - Japan 8.5% Japan 16.9% Europe ex -UK 30.2% Is rael 0.5% Lat in America 3.0% Asia 18.9% Eastern Europe, Middle East & Africa 3.4% Emerging Mark et s 25.4% MS CI ALL COUNTRY WORLD EX-U.S. IMI INDEX GEOGRAPHIC AL LOCATION AS OF 03/31/2019 Sourc e:MS CI Page 65 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. U.S. Equity Markets With concerns of a slower U.S. economy abating and more promising steps to some U.S.-China trade reconciliation, it is unsurprising that drivers of the U.S. equity market upturn came from sectors traditionally thought to be cyclical or, at least, sensitive to the economic environment. The Dow Jones To tal Stock Market Index rose by 14.0% over the quarter with the majority of the strong performance coming earlier in the quarter. The Russell 3000 Index rose 14.0% during the first quarter and 8.8% over the one-year period. All sectors generated positive returns over the quarter. In particular, Technology (19.3%) and Producer Durables (17.6%) were the best performing sectors in Q1 2019. Performance was positive across the market capitalization spectrum over the quarter. In general, large cap stocks underperformed both medium and small cap stocks over the quarter. Growth stocks outperformed their Value counterparts in Q1 2019; a continuation of a longer-lasting trend where Value stocks have lagged their Growth stock equivalents significantly over the last twelve months. 14.0% 10.8% 15.1%14.4% 19.6% 11.9% 17.1% 8.8%7.1% 13.2% 2.9% 11.5% 0.2% 3.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Russell 3000 31.0% Large Value 36.1% Large Growth 14.9% Medium Value 11.0% Medium Growth 3.4% Small Value 3.7% Small Growth RUSSELL STYLE RETURNS AS OF 03/31/2019 First Quarter 2019 One-Year Source: Russell Indexes 14.0% 19.3% 8.7% 14.4% 9.8% 16.6% 12.8% 17.6% 12.5% 10.2%8.8% 13.8%15.1% 11.6% 6.8% -0.4%-2.1% 4.4%3.6% 15.7% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Russell 3000 21.4% Technology 13.9% Healthcare 14.4% Cons. Disc 5.7% Cons. Staples 5.1% Energy 3.4% Materials & Processing 10.5% Producer Durables 20.4% Financial Services 5.1% Utilities RUSSELL GICS SECTOR RETURNS AS AT 03/31/2019 First Quarter 2019 One-Year Source: Russell Indexes Page 66 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. U.S. Fixed Income Markets The Bloomberg Barclays U.S. Aggregate Bond Index rose by 2.9% over the quarter. Corporate bonds were the best performers, returning 5.1% whilst ABS bonds underperformed with a return of 1.5%. Performance was positive across all credit grades. High yield bonds rose the most at 7.3%. Within investment grade bonds, Baa bonds outperformed with a return of 5.8%. Long-maturity bonds outperformed intermediate and short-maturity bonds over the quarter. Long-maturity bonds returned 6.4% while short-maturity bonds returned only 1.2% in Q1 2019. 2.9% 2.1% 5.1% 2.2% 1.5% 3.2% 4.5%4.2% 4.9%4.4% 3.7% 5.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Barclays Agg. Bond 42.3% Govt 25.9% Corp. 29.1% MBS 0.5% ABS 2.1% CMBS BLOOMBERG BARCLAYS AGGREGATE RETURNS BY SECTOR AS OF 03/31/2019 First Quarter 2019 One-Year Source: FactSet 1.2% 2.1%2.6% 3.1% 6.4% 3.0% 4.2% 4.8%5.1%5.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 1-3 Yr.3-5 Yr.5-7 Yr.7-10 Yr.>10 Yr. BLOOMBERG BARCLAYS AGGREGATE RETURNS BY MATURITY AS OF 03/31/2019 First Quarter 2019 One-Year Source: FactSet 2.2% 3.4% 4.6% 5.8% 7.3% 4.3% 4.9%4.8%5.0% 5.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Aaa Aa A Baa High Yield BLOOMBERG BARCLAYS AGGREGATE RETURNS BY QUALITY AND HIGH YIELD RETURNS AS OF 03/31/2019 First Quarter 2019 One-Year Source: FactSet Page 67 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. U.S. Fixed Income Markets The U.S. nominal yield curve shifted downwards over the quarter with yields falling across all maturities. The U.S. treasury yield curve flattened significantly in Q1. The difference between three-month and ten-year U.S. treasury yields (a key measure of the U.S. yield curve watched by the Fed and seen as an indicator of a coming recession) turned negative for the first time since August 2007. The 10-year U.S. Treasury yield ended the quarter at 2.41%, 28bps lower than at the start of the quarter in which the US Federal Reserve (Fed) decided to pause after hiking interest rates over the past year. Projected rate hikes for 2019 have been abandoned and pushed back later to 2020. Moreover, September is now earmarked as the end of the Fed's balance sheet tightening, while the pace of quantitative tightening will halve from May onwards (from $30bn to $15bn). The 10-year TIPS yield fell by 45bps over the quarter and ended the period at 0.53%. 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 0 5 10 15 20 25 30 Maturity (Years) U.S. TREASURY YIELD CURVE 3/31/2018 12/31/2018 3/31/2019 Source:U.S. Department of Treasury -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Mar 09 Mar 11 Mar 13 Mar 15 Mar 17 Mar 19 U.S. 10-YEAR TREASURY AND TIPS YIELDS 10Y TIPS Yield 10Y Treasury Yield Source:U.S. Department of Treasury Page 68 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. European Fixed Income Markets Bond spreads over 10-year German bunds generally fell across the eurozone (except for Italy).The European Central Bank (ECB) pushed back its interest rate to 2020 at the earliest. The ECB announced the third iteration of the Targeted Long-Term Refinancing Operations (TLTRO), aimed at encouraging bank supply of credit. This comes just one quarter after the ECB ended its quantitative easing programme. German government bund yields fell by 31bps to -0.07% over the quarter with the yields falling below zero for the first time in two years after the country’s manufacturing sector dived deeper into contraction territory. Italian government bond yields fell by 25bps to 2.49% over the quarter. Both Fitch and Moody’s credit rating agencies kept their ratings unchanged for Italian sovereign bonds at BBB and Baa3 respectively, easing fears of a downgrade expected by some market participants. Portuguese government bond yields fell by 46bps to a record low of 1.25%, as Standard and Poor’s upgraded the country’s credit rating to BBB. Greek government bond yields fell by 62bps to 3.73% over the quarter which saw the successful release of the country's first new bond issuance since it exited its third bailout programme in August 2018. 0% 5% 10% 15% 20% 25% 30% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 EUROZONE PERIPHERAL BOND SPREADS (10-YEAR SPREADS OVER GERMAN BUNDS) Spain Italy Portugal Greece Ireland Source:FactSet Page 69 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Credit Spreads Against a backdrop of improving risk appetite, credit spreads over U.S. Treasuries generally narrowed over the quarter. Broadly retracing the prior quarter’s credit spread widening, High Yield bond spreads narrowed significantly in Q1 2019, decreasing by 135bps. This was followed by Global Emerging Markets bonds spreads, which narrowed by 47bps. Spre ad (bps)3/31/2019 12/31/2018 3/31/2018 Quarte rl y Ch ange (bps)1-Year Cha nge (bps) U.S. Aggregat e 44 54 41 -10 3 Long Gov't 1 2 1 -1 0 Long Credit 172 200 148 -28 24 Long Gov't /Credit 99 113 88 -14 11 MBS 35 35 29 0 6 CMBS 69 86 67 -17 2 ABS 39 53 48 -14 -9 Corporat e 119 153 109 -34 10 Hi gh Yield 391 526 354 -135 37 Global Emerging Mark et s 283 330 230 -47 53 So urce: F ac tSet, B lo omberg Barc lays Page 70 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Currency The U.S. dollar had a mixed performance against major currencies over the quarter and ended marginally lower as it fell 0.4% on a trade-weighted basis over the quarter.U.S. dollar appreciated against euro and yen but depreciated against sterling and Canadian dollar. In the UK, it became clear over the quarter that a "no deal" Brexit scenario does not seem to have parliamentary backing, prompting sterling to find firmer footing.Sterling appreciated by 2.3% against the U.S. dollar. Alongside a more dovish ECB and a weaker economic outlook, the euro notably underperformed, falling against all major currencies. In particular, the euro depreciated by 1.8% against the U.S. dollar. 85 90 95 100 105 110 115 120 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 TRADE WEIGHTED U.S. DOLLAR INDEX (1973 = 100) Source:Federal Reserve 85 95 105 115 125 135 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 U.S. DOLLAR RELATIVE TO EUR, GBP AND JPY REBASED TO 100 AT 03/31/2013 EUR/USD GBP/USD JPY/USD Source: Factset Stronger Dollar Weaker Dollar Page 71 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Commodities Commodities rose over the quarter which saw the Bloomberg Commodity Index return 6.3%. Energy was the best performing sector over the quarter with a return of 15.9% as crude oil prices rose sharply. The cut in OPEC's crude oil production, as well as an unexpected fall in U.S. inventories, more than offset the potentially dampening effect on commodity demand from weakening economic growth and trade. The price of Brent crude oil rose by 27.1% to $68/bbl. and WTI crude oil spot prices rose by 32.4% to $60/bbl. Agriculture (-3.2%) was the worst performing sector in Q1 2019. Within the Agriculture sector, Softs rose by 0.4% whilst Grains fell by 5.8%. 6.3% 2.3% 15.9% 12.8% 0.0% -3.2% 0.4% -5.8% 4.7% -5.3% -7.6% -0.5% -3.1% -4.0% -16.3% -13.2% -16.9% 14.4% -20.0%-15.0%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0% Bloomberg Commodity Index Ex-Energy Energy Industrial Metals Prec. Metals Agric. Softs Grains Livestock COMMODITY RETURNS AS OF 03/31/2019 First Quarter 2019 One-Year Source:Bloomberg Page 72 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Hedge Fund Markets Overview Hedge fund performance was positive across all strategies in the first quarter. Over the quarter, Equity Hedge and Emerging Markets strategies were the best performers with returns of 7.9% and 7.8%, Conversely, Distressed-Restructuring and Global Macro were the worst performers, returning 3.3% and 2.9% respectively. HFRI Fund-Weighted Composite Index and the HFRI Fund of Funds Composite Index produced returns of 5.9% and 5.0% respectively. 5.4% 2.6% 7.8% 7.5% 4.2% 3.2% 4.0% 5.7% 4.6% 1.4% 0.0% -0.2% -5.2% 1.9% 1.2% 3.0% 0.7% 0.1% -6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%10.0% Fixed Income/Convertible Arb. Global Macro Equity Hedge Emerging Markets Event-Driven Distressed-Restructuring Relative Value Fund-Weighted Composite Index Fund of Funds Composite Index HEDGE FUND PERFORMANCE AS OF 03/31/2019 First Quarter One-Year Note: Latest 5 months of HFR data are estimated by HFR and may change in the future. Source:HFR Page 73 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Private Equity Market Overview –Q4 2018 –Slide 1 of 2 Fundraising: In 2018, $459.6 billion was raised by 1,373 funds, which was a decrease of 27.1% on a capital basis but an increase of 0.7% by number of funds from the prior year. Dry powder stood at $1.89 trillion at the end of the year, an increase of 11.8% and 39.9% compared to year-end 2017 and the five year average, respectively.1 Buyout: Global private equity-backed buyout deals totaled $466.9 billion in 2018, which was up 13.3% and 22.3% from 2017 and five year average, respectively.1 At the end of 2018, the average purchase price multiple for all U.S. LBOs was 10.6x EBITDA, flat with year-end 2017 and up from the five-year average (9.9x).2 Large cap purchase price multiples stood at 10.6x, up compared to the full-year 2017 level of 10.4x.2 The weighted average purchase price multiple across all European transaction sizes averaged 11.3x EBITDA for year-end 2018, up from the 10.7x multiple seen at year-end 2017. Purchase prices for transactions of €1.0 billion or more increased from 11.6x in 2017 to 11.7x in 2018. Transactions between €500.0 million and €1.0 billion were up 0.8x from the end of 2017, and stood at 11.3x at year-end 2018.2 Globally, exit value totaled $351.8 billion on 2,072 deals during the year, higher than the $337.1 billion in exits from 2,059 deals during 2017. Venture: During the year, 5,536 venture-backed transactions totaling $99.5 billion were completed, which was a substantial increase on a capital basis over the prior year’s total of $76.4 billion across 5,824 deals. This was 31.6% higher than the five-year average of $75.6 billion.3 Total U.S. venture-backed exit activity totaled approximately $122.0 billion across 864 completed transactions in 2018, up notably from $92.0 billion across 885 exits in 2017.4 Mezzanine: 56 funds closed on $31.7 billion during the year. This was a significant increase from the prior year’s total of $12.4 billion raised by 48 funds and represented an increase of 38.4% from the five-year average of $22.9 billion. Estimated dry powder was $58.4 billion at the end of 2018, up by $4.9 billion from the prior year and higher than the $53.1 billion high seen at year-end 2016.1 0 1,000 2,000 3,000 4,000 5,000 6,000 $0 $100 $200 $300 $400 $500 $600 3Q10 2Q11 1Q12 4Q12 3Q13 2Q14 1Q15 4Q15 3Q16 2Q17 1Q18 4Q18 # of DealsValue ($ Billions)Deal Value ($ Billions) Number of Deals Sources: 1 Preqin 2 Standard & Poor’s 3 PwC/CB Insights MoneyTree Report 4 PitchBook/NVCA Venture Monitor 5 Fitch Ratings 6 Thomson Reuters 7 UBS Notes: FY=Fiscal year ended 12/31; YTD=Year to date; LTM=Last 12 months (aka trailing 12 months); PPM=Purchase Price Multiples: Total Purchase Price ÷ EBITDA. Page 74 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Private Equity Market Overview –Q4 2018 –Slide 2 of 2 Sources: 1 Preqin 2 Standard & Poor’s 3 PwC/CB Insights MoneyTree Report 4 PitchBook/NVCA Venture Monitor 5 Fitch Ratings 6 Thomson Reuters 7 UBS Notes: FY=Fiscal year ended 12/31; YTD=Year to date; LTM=Last 12 months (aka trailing 12 months); PPM=Purchase Price Multiples: Total Purchase Price ÷ EBITDA. Distressed Debt: The LTM U.S. high-yield default rate was 2.4% as of December 2018, which was up from December 2017’s LTM rate of 1.3%.5 During the year, $39.3 billion was raised by 63 funds, lower than the $48.1 billion raised by 72 funds during 2017.1 Dry powder was estimated at $117.6 billion at the end of 2018, which was up 6.7% from year-end 2017. This remained above the five-year annual average level of $96.4 billion.1 Secondaries: 26 funds raised $21.2 billion during the year, down significantly from the $42.8 billion raised by 50 funds in 2017.1 The average discount rate for all private equity sectors finished the year at 8.9%, higher than the 7.9% discount at the end of 2017.6 Infrastructure: $92.9 billion of capital was raised by 75 funds in 2018 compared to $77.8 billion of capital raised by 100 partnerships in 2017. At the end of the year, dry powder stood at $177.0 billion, up from last year’s record of $164.0 billion. Infrastructure managers completed 2,454 deals with an aggregate deal value of $322.0 billion in 2018 compared to 3,165 deals totaling $387.0 billion in 2017.1 Natural Resources: During 2018, 35 funds closed on $19.1 billion compared to 44 funds totaling $21.9 billion in 2017. Energy and utilities industry managers completed 150 deals totaling $34.4 billion in 2018, compared to $36.9 billion across 130 deals in 2017.1 7.7 x 8.5 x 8.8 x 8.7x 8.8x 9.8x 10.3x 10.0x 10.6x 10.6x 0.0 x 2.0 x 4.0 x 6.0 x 8.0 x 10.0 x 12.0 x Senior Debt/EBITDA Sub Debt/EBITDA Equity/EBITDA Others Page 75 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. U.S. Commercial Real Estate Markets Sources: RCA, AON 12/31/2018 U.S.Core real estate returned 1.42%*over the first quarter,equating to 7.5%total gross return year-over-year,including a 4.2% income return.Debt mark to market was a drag on the quarterly return as a result of declining interest rates.Net income growth is expected to be the larger driver of the total return on a go forward basis given the current point of the real estate cycle. Global property markets,as measured by the FTSE EPRA/NAREIT Global Developed Real Estate Index,returned 14.9%(USD)in aggregate during the first quarter.Sector strength was largely attributed to a broader equity market rally due to an abrupt shift in monetary policy across major economies.The EU restarted QE just 2 months after ceasing the program,and the US Fed communicated a general pause from increasing rates for 2019.REIT market performance was driven by Asia Pacific (15.6%USD), North America (16.0%USD)and Europe (12.2%USD).The U.S.REIT markets (FTSE NAREIT Equity REITs Index)gained 16.3% in the first quarter.U.S.10-year Treasury bond yield fell to 2.41%,after hitting highs over 3%in 2018.the movement was supportive to REIT share prices.Similarly,the German 10-year bond yield fell from .24%back to -0.07%at the end of the quarter. According to RCA through February 2019,the U.S.property market has experienced price growth of 6.3%year-over-year across major sectors.In addition,transaction volume was down 4%over the same period. Return expectations have normalized,with go forward expectations in line with historical norms.Declining interest rates have led to a rally across various asset classes.According to Preqin,there remains a record amount of dry powder ($326 billion)in closed-end vehicles seeking real estate exposure,which should continue to lend support to valuations and liquidity in the commercial real estate market. *Indicates preliminary NFI-ODCE data gross of fees 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CAP RATES BY SECTOR Office Industrial Retail Apartment 1.4% 7.5%8.0% 10.2%8.7% 16.3% 20.9% 6.1% 9.1% 18.3% 0.0% 5.0% 10 .0% 15 .0% 20 .0% 25 .0% Fir st Qua rter 20 19 1-Year 3-Years 5-Years 10 -Years PRIVATE VS. PUBLIC REAL ES TATE RET URNS AS OF 3/31/2019 Private (NF I-ODCE Gross )*Publi c (NAR EIT Gro ss) *Second quarter r eturns a re p reliminary Sources: NCREIF, Factset Page 76 Appendix Page 77 Fee Schedule Market Value As of 03/31/2019 $000 % of Portfolio Estimated Annual Fee $000 Estimated Annual Fee (%) Total Pension 275,207 100.00 1,350 0.49 Total Domestic Equity 94,852 34.47 249 0.26 BlackRock Russell 1000 Index Fund Non-Lending 0.04 % of Assets 68,881 25.03 24 0.04 Kennedy Mid Cap Value 0.75 % of First $25 M 0.70 % of Next $25 M 0.60 % Thereafter 12,729 4.63 95 0.75 TimesSquare Small Cap Growth 0.98 % of Assets 13,242 4.81 130 0.98 Total International Equity 48,224 17.52 456 0.95 Morgan Stanley International Equity 0.90 % of Assets 32,261 11.72 290 0.90 Morgan Stanley Emerging Markets Fund I 1.04 % of Assets 15,962 5.80 166 1.04 Total Fixed Income 94,721 34.42 330 0.35 Income Research 0.45 % of First $10 M 0.35 % of Next $10 M 0.30 % of Next $10 M 0.23 % of Next $20 M 0.23 % of Next $50 M 0.20 % Thereafter 38,432 13.96 129 0.34 Prudential Core Plus Bond 0.30 % of First $50 M 0.28 % of Next $100 M 0.25 % of Next $100 M 0.20 % Thereafter 35,276 12.82 106 0.30 Brandywine Global Opportunistic Fixed Income 0.45 % of First $50 M 0.40 % of Next $50 M 0.35 % Thereafter 21,013 7.64 95 0.45 Hedge Fund 1,285 0.47 20 1.58 Entrust Capital Diversified Fund 1.58 % of Assets 1,285 0.47 20 1.58 Real Estate 33,714 12.25 289 0.86 UBS Trumbull Property Fund 0.96 % of First $10 M 0.83 % of Next $15 M 0.81 % of Next $25 M 0.79 % of Next $50 M 0.67 % of Next $150 M 0.60 % of Next $150 M 0.56 % of Next $200 M 0.52 % Thereafter 33,714 12.25 289 0.86 Cash Account 0.20 % of Assets 2,411 0.88 5 0.20 Total Pension Fee Schedule As of March 31, 2019 Page 78 Benchmark Descriptions Policy Benchmark As of October 1, 2018, the Policy Index consists of 25% Russell 1000 Index, 10% Russell 2000 Index, 12% MSCI EAFE Index (net), 6% MSCI EM Index (net), 14% BC Int. Gov/Credit Index, 8% Citi WG Bond Index, 13% Barclays U.S. Aggregate Index, and 12% NCREIF Property Index. From January 1, 2017 to October 1, 2018, The Policy Benchmark consists of 20% Russell 1000 Index, 6% Russell 2000 Index, 10% MSCI EAFE Index, 4% MSCI Emerging Markets Index, 12% BC Aggregate Index, 14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 15% HFRI Fund of Funds Composite Index, 10% NCREIF Property Index. From August 1, 2015 to January 1, 2017, The Policy Benchmark consists of 20% Russell 1000 Index, 6% Russell 2000 Index, 10% MSCI EAFE Index, 4% MSCI Emerging Markets Index, 12% BC Aggregate Index, 14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 15% HFRI Fund of Funds Composite Index, 5% Wellington DIH Multi-Asset Inflation Index and 5% NCREIF Property Index. From March 1, 2015 to August 1, 2015, The Policy Benchmark consists of 21% Russell 1000 Index, 6% Russell 2000 Index, 11% MSCI EAFE Index, 3% MSCI Emerging Markets Index, 10% 65% MSCI World/35% BC Aggregate Blend Index, 2% 50% BC Credit/25% S&P LSTA/25% BC High Yield Blend Index,14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 5% BofA Merrill Lynch US High Yield Cash Pay Index, 4% HFRI Equity Hedge (Total) Index, 5% JPMorgan GBI-EM Diversified and 5% NCREIF Fund Index-OEDCE. From April 1, 2014 to March 1, 2015, The Policy Benchmark consists of 21% Russell 1000 Index, 6% Russell 2000 Index, 11% MSCI EAFE Index, 3% MSCI Emerging Markets Index, 10% 65% MSCI World/35% BC Aggregate Blend Index, 2% 50% BC Credit/25% S&P LSTA/25% BC High Yield Blend Index,14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 5% BofA Merrill Lynch US High Yield Cash Pay Index, 4% CPI+5%, 5%Wellington DIH Benchmark, 5% JPMorgan GBI-EM Diversified and 5% NCREIF Fund Index-OEDCE. Prior to April 1, 2014, the Policy Benchmark is comprised of 20% Russell 1000 Index, 5% Russell 2000 Index, 10% MSCI EAFE Index,3% MSCI Emerging Markets Index, 10% 65% MSCI World/35% BC Aggregate Blend Index, 2% 50% BC Credit/25% S&P LSTA/25% BC High Yield Blend Index, 13% BC Intermediate Gov/Credit Index, , 8% Citigroup World Government Bond Index, 5% BofA Merrill Lynch US High Yield, Cash Pay Index, 5% 3 Month T-Bills + 3%,4% CPI + 5%, 5% Wellington DIH Multi-Asset Inflation Index, 5% JPM GBI-EM Global Diversified Index, and 5% NCREIF Fund Index-OEDCE. Note: Wellington DIH Multi-Asset Inflation Index consists of 50% MSCI ACW Commodity Producers Index, 25% DJ AIG Commodity Total Return Index and 25% BC US Treasury Inflation Notes: 1-10 Year Page 79 Benchmark Descriptions Bloomberg Barclays Corporate High Yield Bond Index -An index that covers the USD-dominated, non-investment grade, fixed rate, taxable corporate bond market. Debt issues from emerging market countries are excluded. Securities are classified as high-yield if the middle rating is Ba1/BB+ or below. Bloomberg Barclays Emerging Markets Index -An unmanaged index that tracks total returns for external-currency-denominated debt instruments of the emerging markets. Bloomberg Barclays Global Aggregate -Provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. Bloomberg Barclays Global Treasury Ex-US -The Barclays Global Treasury ex US Index is a subset of the flagship Global Treasury Index that does not have any exposure to US debt. This multi-currency benchmark includes investment grade, fixed-rate bonds issued by governments in their native currencies. Bloomberg Barclays Inflation Index -Measures the performance of the U.S. Treasury Inflation Protected Securities ("TIPS") market. Bloomberg Barclays Universal Index -A market value-weighted index which is the union of the U.S. Aggregate Index, U.S. High Yield Corporate Index, Eurodollar Index, U.S. Emerging Markets Index and the CMBS High Yield Index. The Index is appropriate for core plus fixed income mandates. Bloomberg Barclays U.S. Aggregate Bond Index -A market value-weighted index consisting of government bonds, SEC-registered corporate bonds and mortgage-related and asset-backed securities with at least one year to maturity and an outstanding par value of $250 million or greater. This index is a broad measure of the performance of the investment grade U.S. fixed income market. Bloomberg Barclays U.S. Government/Credit Index -A subcomponent of the Barclays Capital Aggregate Index, this benchmark includes treasury securities, government related issues, and high quality corporate bonds with an outstanding par value of $250 million or greater and at least one year of maturity remaining. Bloomberg Barclays U.S. Government Index -A market value weighted index of U.S. government and government agency securities (other than mortgage securities) with maturities of one year or more. Bloomberg Barclays U.S. High Yield Index -An index composed of non-investment grade corporate debt denominated in U.S. dollars. The issues have to have an outstanding par value of $150 million or greater and at least one year of maturity remaining. Bloomberg Barclays U.S. Intermediate Aggregate Bond Index -A market value-weighted index consisting of U.S. Treasury securities, corporate bonds and mortgage-related and asset-backed securities with one to ten years to maturity and an outstanding par value of $250 million or greater. Bloomberg Barclays U.S. Intermediate Government Bond Index -An unmanaged index considered representative of intermediate-term fixed-income obligations issued by the U.S. treasury, government agencies and quasi-federal corporations. Bloomberg Barclays U.S. Intermediate Government/Credit Index -A market-value weighted index consisting of U.S. government bonds and SEC-registered corporate bonds with one to ten years to maturity and an outstanding par value of $150 million or greater. Bloomberg Barclays U.S. Intermediate Treasury -An unmanaged index considered representative of intermediate-term fixed-income obligations issued by the U.S. treasury. Bloomberg Barclays U.S. Long Credit Bond Index -An unmanaged index considered representative of long-term fixed-income obligations issued by U.S. corporate, specified foreign debentures, and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC-registered. Page 80 Benchmark Descriptions Bloomberg Barclays U.S. Long Gov’t/Credit Index -The Barclays Capital U.S. Government/ Credit Bond Index measures performance of U.S. dollar denominated U.S. treasuries, government-related, and investment grade U.S. corporate securities that have a remaining maturity of greater than or equal to 1 year. In addition, the securities have $250 million or more of outstanding face value, and must be fixed rate and non-convertible. Bloomberg Barclays U.S. Long Government Bond Index -An unmanaged index considered representative of long-term fixed-income obligations issued by the U.S. treasury, government agencies and quasi-federal corporations. Bloomberg Barclays U.S. TIPS -A market value-weighted index consisting of U.S. Treasury Inflation Protected Securities with one or more years remaining until maturity with total outstanding issue size of $500m or more. Bloomberg Barclays U.S. Treasury 20-30 Year STRIPS Index -A subcomponent of the Barclays Aggregate Index, this benchmark includes long-term treasury STRIPS. Bloomberg Commodity Index -Consists of 22 exchange-traded futures on physical commodities, which are weighted to account for economic significance and market liquidity. Performance is calculated on an excess return basis and reflects commodity future price movements. BofA Merrill Lynch 3 Month Treasury Bill -An index that measures the average return of the last three-month U.S. Treasury Bill issues. BofA Merrill Lynch High Yield Master -A market capitalization-weighted index that tracks the performance of U.S. dollar-denominated, below investment grade corporate debt publicly issued in the U.S. domestic market. Citigroup 90-Day T-Bill Index -An index that measures the average return of the last three-month U.S. Treasury Bill issues. Credit Suisse Leveraged Loan Index -Designed to mirror the investable universe of the U.S. dollar denominated leveraged loan market. CRSP US Large Cap Index -an index comprised of nearly 640 US large cap companies and includes securities traded on NYSE, NYSEMarket, NASDAQ, or ARCA, representing nearly 85% of the U.S. investable equity market. The index is reconstituted quarterly after the market close on the third Fridays of March, June, September, and December. CRSP US Total Market Index -an index comprised of nearly 4,000 constituents across mega, large, small, and micro capitalizations and includes securities traded on NYSE, NYSE Market, NASDAQ, or ARCA, representing nearly 100% of the U.S. investable equity market. The index is reconstituted quarterly after the market close on the third Fridays of March, June, September, and December. DJ U.S. Completion Total Stock Market Index -A capitalization-weighted index that consists of the stocks in the Dow Jones U.S. Total Stock Market Index less the stocks in the S&P 500 Stock Index. DJ U.S. Total Stock Market Index -A capitalization-weighted stock index representing all domestic common stocks traded regularly on the organized exchanges. The index is the broadest measure of the aggregate domestic stock market and includes approximately 5,000 stocks. FTSE 4Good U.S. Select Index -a socially responsible investment (SRI) index of US stocks that excludes companies with certain business activities such as weapons, tobacco, gambling, alcohol, nuclear power, and adult entertainment. FTSE All-World ex-U.S. Index -A capitalization-weighted stock index representing 46 developed market countries and emerging market countries excluding the U.S. Page 81 Benchmark Descriptions FTSE EPRA NAREIT Global ex-U.S. Index -Designed to represent general trends in eligible real estate equities worldwide. Relevant real estate activities are defined as the ownership, disposure and development of income-producing real estate. FTSE Global All Cap ex US Index -a market-capitalization weighted index representing the performance of roughly 5350 large, mid and small cap companies in 46 Developed and Emerging markets worldwide, excluding the USA. FTSE Global Core Infrastructure Index -Represents the performance of infrastructure and infrastructure-related securities companies in a set of industries that FTSE defines as being involved in infrastructure. The series is based on the FTSE Global Equity Index Series and both developed and emerging markets are included. FTSE NAREIT U.S. Equity REITS -Free float adjusted, market capitalization weighted index of US based equity real estate investment trusts (REITs). Goldman Sachs Commodity Index -A composite index of commodity sector returns which represents a broadly diversified, unleveraged, long-only position in commodity futures. HFRI Fund-of-Fund Index -This index is equity-weighted including 800 constituents. It includes both domestic and offshore accounts and is valued in U.S. dollars. Only fund-of- fund products are included in the index that have at least $50 million under managements and have been actively trading for at least one year. All funds report net monthly returns. HFRI Fund Weighted Composite Index -The HFRI Fund Weighted Composite Index is a global, equal-weighted index of over 2,000 single-manager funds that report to HFR Database. Constituent funds report monthly net of all fees performance in US Dollar and have a minimum of $50 Million under management or a twelve (12) month track record of active performance. The HFRI Fund Weighted Composite Index does not include Funds of Hedge Funds. Hueler Stable Value Index -The Hueler Analytics Stable Value Pooled Fund Comparative Universe represents investment strategies of $96 billion in stable value assets, across 24 pooled funds, invested in contracts universe across a universe of 16 general account issuers and 14 synthetic wrap providers.The allocation of pooled fund assets is dominated by synthetic contracts issued by insurance companies and banks. iMoneyNet All Taxable Money Funds Index -An index made up of the entire universe of money market mutual funds. The index currently represents over 1,300 funds, or approximately 99 percent of all money fund assets. iMoneyNet Money Fund Average -An index made up of the entire universe of money market mutual funds. The index currently represents over 1,300 funds, or approximately 99 percent of all money fund assets. J.P. Morgan EMBI Global Diversified -Comprised of dollar-denominated Brady bonds, traded loans and Eurobonds issued by emerging market sovereign and quasi-sovereign entities. The Diversified version limits the weights of the index countries by only including a specified portion of those countries' eligible current face amounts of debt outstanding, providing for a more even distribution of weights within the countries in the index. MSCI All Country World ex-U.S. Index -A capitalization-weighted index of stocks representing 44 stock markets in Europe, Australia, the Far East, the Middle East, Latin America and North America. Index consists of 23 developed and 21 emerging countries, but excludes the U.S. MSCI All Country World ex-U.S. Index IMI-A capitalization-weighted index of large, mid and small cap stocks representing 22 developed (excluding the United States) and 24 emerging market countries. The index is the broadest measure of the aggregate non-US stock market, covering approximately 99% of the global equity investment opportunity set outside of the United States. Page 82 Benchmark Descriptions MSCI All Country World ex-U.S. Small Cap Index -Covers all investable small cap securities with a market capitalization below that of the companies in the MSCI Standard Indices (excluding U.S.), and target approximately 14% of each market’s free-float adjusted market capitalization. MSCI All Country World Index -A capitalization-weighted index of stocks representing 46 stock markets in Europe, Australia, the Far East, the Middle East, Latin America and North America. MSCI All Country World Index IMI -A capitalization-weighted index of large, mid and small cap stocks representing 23 developed and 24 emerging market countries. The index is the broadest measure of the aggregate global stock market, covering approximately 99% of the global equity investment opportunity set. MSCI EAFE Growth Index -A capitalization-weighted index of 21 stock markets in Europe, Australia, Asia and the Far East designed to capture the growth-oriented companies. MSCI EAFE Index -A capitalization-weighted index of stocks representing 22 developed countries in Europe, Australia, Asia, and the Far East. MSCI EAFE Small Cap Index -A capitalization-weighted index of small cap stocks representing 23 developed country markets in Europe, Australia, Asia, and the Far East. MSCI EAFE Value Index -A capitalization-weighted index of 21 stock markets in Europe, Australia, Asia and the Far East designed to capture the value-oriented companies. MSCI Emerging Markets Index -A capitalization-weighted index of stocks representing 22 emerging country markets. MSCI Emerging Markets Value Index -A capitalization-weighted index considered representative of value stocks across 46 stock markets in Europe, Australia, the Far East, the Middle East, Latin America and North America. MSCI U.S. Broad Market Index -A capitalization-weighted stock index that aggregates the MSCI U.S. Large Cap 300, Mid Cap 450, Small Cap 1,750 and Micro Cap Indices. This index represents approximately 99.5% of the capitalization of the U.S. Equity market and includes approximately 3,562 companies. MSCI U.S. REIT Index -A broad index that fairly represents the equity REIT opportunity set with proper investability screens to ensure that the index is investable and replicable. The index represents approximately 85% of the U.S. REIT universe. MSCI World Index -A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, representing 24 developed market country indices. NCREIF Property Index -A capitalization-weighted index of privately owned investment grade income-producing properties representing approximately $269 billion in assets. NFI ODCE Index -A capitalization weighted index comprised of open-end, Core funds investing in commercial real estate properties. The funds that constitute the index are subject to certain geographic and property type diversification requirements as well as leverage restrictions. The index reflects the impact of leverage on investment results. The returns shown in this report are net of management fees of the respective funds included in the index. Rolling 3-year Constant Maturity Treasury Index -An index published by the Federal Reserve Board based on the monthly average yield of a range of Treasury securities, all adjusted to the equivalent of a three-year maturity. Russell 1000 Growth Index -An index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher I/B/E/S growth forecasts. Russell 1000 Index -A capitalization-weighted index of the 1,000 largest publicly traded U.S. stocks by capitalization. Page 83 Benchmark Descriptions Russell 1000 Value Index -An index that measures the performance of those stocks included in the Russell 1000 Index with lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. Russell 2000 Growth Index -A capitalization-weighted index of those stocks in the Russell 2000 Index with higher price-to-book ratios and higher I/B/E/S earnings growth forecasts. Russell 2000 Index -A capitalization-weighted index of the smallest 2,000 stocks in the Russell 3000 Index. The index excludes the largest-and smallest-capitalization issues in the domestic stock market. Russell 2000 Value Index -An index that measures the performance of those stocks included in the Russell 2000 Index with lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. Russell 2500 Growth Index -A capitalization-weighted index representing those companies within the Russell 2500 Index with higher price-to-book ratios and higher I/B/E/S earnings growth forecasts. Russell 2500 Index -The Index is constructed by first identifying the 3,000 largest-capitalization U.S. stocks and ranking them by market capitalizations, choosing the bottom 2,500 names on the list. Russell 2500 Value Index -An index that measures the performance of those stocks included in the Russell 2500 Index with lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. Russell 3000 Growth Index -A capitalization-weighted index consisting of those Russell 3000 Index stocks that have higher price-to-book ratios and higher I/B/E/S earnings growth forecasts. Russell 3000 Index -A capitalization-weighted index consisting of the 3,000 largest publicly traded U.S. stocks by capitalization. This index is a broad measure of the performance of the aggregate domestic equity market. Russell 3000 Value Index -A capitalization-weighted index consisting of those Russell 3000 Index stocks that have lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. Russell Mid Cap Growth Index -A capitalization-weighted index representing those stocks in the Russell MidCap Index with higher price-to-book ratios and higher I/B/E/S earnings growth forecasts. Russell Mid Cap Index -A capitalization-weighted index of the 800 smallest stocks in the Russell 1000 Index. This index is a broad measure of mid-capitalization stocks. Russell Mid Cap Value Index -A capitalization-weighted index consisting of those Russell MidCap Index stocks that have lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. S&P 500 Index -A capitalization-weighted index representing stocks chosen by Standard & Poor's, Inc. for their size, liquidity, stability and industry group representation. The companies in the S&P 500 Index are generally among the largest in their industries. Page 84 Benchmark Descriptions S&P Completion Index -The S&P Completion Index is a sub-index of the S&P Total Market Index, including all stocks eligible for the S&P TMI and excluding all current constituents of the S&P 500. The index covers approximately 4,000 constituents, offering investors broad exposure to mid, small,and micro cap companies. S&P Leverage Loan Index -A daily total return index that uses LSTA/LPC Mark-to-Market Pricing to calculate market value change. S&P MidCap 400 Index -A market-capitalization-weighted index of stocks in all major industries in the mid-range of the U.S. stock market. Wilshire REIT -A measure of the types of U.S. real estate securities that represent the ownership and operation of commercial or residential real estate. To be included in the index, a company must have a market capitalization of $200 million and have at least 75% of the total revenue derived from the ownership and operation of the real estate assets. Indices cannot be invested in directly. Unmanaged index returns assume reinvestment of any and all distributions and do not reflect our fees or expenses. Past performance is no guarantee of future results. Please feel free to contact us at retirement@aonhewitt.com for more index information. Page 85 This Page Left Blank Intentionally Page 86 Disclaimers and Notes Page 87 Notes: §The rates of return contained in this report are shown on an after-fees basis unless otherwise noted.They are geometric and time weighted.Returns for periods longer than one year are annualized. §Universe percentiles are based upon an ordering system in which 1 is the best ranking and 100 is the worst ranking. §Due to rounding throughout the report,percentage totals displayed may not sum up to 100.0%.Additionally,individual fund totals in dollar terms may not sum up to the plan totals. §All information presented in this report should be considered preliminary.Finalized data will be available on next Quarterly Investment Report after the close of the quarter. Notes Page 88 Past performance is not necessarily indicative of future results. Unless otherwise noted,performance returns presented reflect the respective fund’s performance as indicated.Returns may be presented on a before-fees basis (gross)or after- fees basis (net).After-fee performance is net of each respective sub-advisors’investment management fees and include the reinvestment of dividends and interest as indicated on the notes page within this report or on the asset allocation and performance summary pages.Actual returns may be reduced by AHIC’s investment advisory fees or other trust payable expenses you may incur as a client.AHIC’s advisory fees are described in Form ADV Part 2A.Portfolio performance,characteristics and volatility also may differ from the benchmark(s) shown. The information contained herein is confidential and proprietary and provided for informational purposes only.It is not complete and does not contain certain material information about making investments in securities including important disclosures and risk factors.All securities transactions involve substantial risk of loss.Under no circumstances does the information in this report represent a recommendation to buy or sell stocks, limited partnership interests, or other investment instruments. The data contained in these reports is compiled from statements provided by custodian(s),record-keeper(s),and/or other third-party data provider(s).This document is not intended to provide,and shall not be relied upon for,accounting and legal or tax advice.AHIC has not conducted additional audits and cannot warrant its accuracy or completeness.We urge you to carefully review all custodial statements and notify AHIC with any issues or questions you may have with respect to investment performance or any other matter set forth herein. The mutual fund information found in this report is provided by Thomson Reuters Lipper and AHIC cannot warrant its accuracy or timeliness.Thomson Reuters Lipper Global Data Feed provides comprehensive coverage of mutual fund information directly to Investment Metrics,AHIC’s performance reporting vendor,via the PARis performance reporting platform. Thomson Reuters Lipper is the data provider chosen by Investment Metrics, and as such, AHIC has no direct relationship with Thomson Reuters Lipper. Refer to Hedge Fund Research, Inc. www.hedgefundresearch.com for information on HFR indices. FTSE International Limited (“FTSE”)©FTSE 2017.“FTSE®”and “FTSE4Good®”are trademarks of the London Stock Exchange Group companies and are used by FTSE International Limited under license.The FTSE indices are calculated by FTSE International Limited in conjunction with Indonesia Stock Exchange,Bursa Malaysia Berhad,The Philippine Stock Exchange,Inc.,Singapore Exchange Securities Trading Limited and the Stock Exchange of Thailand (the "Exchanges").All intellectual property rights in the FTSE/ASEAN Index vest in FTSE and the Exchanges.Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and /or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. Aon Hewitt Investment Consulting,Inc.(“AHIC”)is a federally registered investment advisor with the U.S.Securities and Exchange Commission (“SEC”).AHIC is also registered with the Commodity Futures Trade Commission as a commodity pool operator and a commodity trading advisor,and is a member of the National Futures Association.The AHIC ADV Form Part 2A disclosure statement is available upon written request to: Aon Hewitt Investment Consulting, Inc. 200 East Randolph Street Suite 1500 Chicago, IL 60601 ATTN: AHIC Compliance Officer Disclaimer