general employees pension board regular meeting agenda ......investing in property management (not...

General Employees Pension BoardRegular Meeting Agenda

September 12, 2018 At 6:00 PM

Bal Harbour Village Hall • 655 - 96th Street • Bal Harbour • Florida 33154

1 CALL TO ORDER/ PLEDGE OF ALLEGIANCE

MEETING OVERVIEW

MANAGER'S MEMORANDUMGEP Board Memorandum 9-12-2018.pdf

2 APPROVAL OF MINUTES

2.A June 12, 2018 Minutes6-12-2018 Pension Meeting Minutes-reformatted.pdf

3 GENERAL EMPLOYEES' RETIREMENT BOARD RESOLUTIONS

3.A Adoption of FY 2018-2019 BudgetA RESOLUTION OF THE GENERAL EMPLOYEES’ RETIREMENT BOARD OF BALHARBOUR, VILLAGE, FLORIDA, APPROVING THE ADMINISTRATIVE BUDGETAND AUTHORIZING ADMINISTRATIVE EXPENDITURES FOR FISCAL YEAR2018-19; PROVIDING FOR EXPENDITURE OF FUNDS; PROVIDING FORCONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR ANEFFECTIVE DATEGEP_Administrative_Budget_Resolution_2018_2019.doc

3.B Resolution for the Selection of General Employees' Pension Plan AdministratorA RESOLUTION OF THE GENERAL EMPLOYEES’ PENSION PLAN OF THEVILLAGE OF BAL HARBOUR VILLAGE, FLORIDA; AUTHORIZING AN AGREEMENTWITH PENSION CONSULTANTS OF FLORIDA TO SERVE AS THE GENERALEMPLOYEES’ PENSION PLAN ADMINISTRATOR; AND PROVIDING FOR AN

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https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/237463/6-12-2018_Pension_Meeting_Minutes-reformatted.pdf

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Bal Harbour General Employees Pension Board Regular Meeting Agenda —September 12, 2018

P a g e | 2

EFFECTIVE DATE.Pension Consultants of Florida Agreement.pdfRESOLUTION TO BE INSERTED HERE.pdf

4 PRESENTATIONS AND DISCUSSIONS

4.A Financials Quarterly Investment Performance ReportPeriod Ending June 30, 2018BalHarbour General 2018-6-30.pdf

4.B Discussion Regarding Investment Advisory Services

5 NEW BUSINESS AND BOARD DISCUSSION

6 PUBLIC COMMENT

7 ADJOURNMENT

One or more members of any Village Committee/Board may attend this meeting of the Council and may discussmatters which may later come before their respective Boards/Committees.

The New Business and Council Discussion Section includes a section for Public Comment. On public commentmatters, any person is entitled to be heard by this Council on any matter; however, no action shall be taken by theCouncil on a matter of public comment, unless the item is specifically listed on the agenda, or is added to theagenda by Council action.

Any person who acts as a lobbyist, pursuant to Village Code Section 2-301 (Lobbyists), must register with theVillage Clerk, prior to engaging in lobbying activities before Village staff, boards, committees, and/or the VillageCouncil. A copy of the Ordinance is available in the Village Clerk’s Office at Village Hall.

If a person decides to appeal any decision made by the Village Council with respect to any matter considered at ameeting or hearing, that person will need a record of the proceedings and, for such purpose, may need to ensurethat a verbatim record of the proceedings is made, which record includes the testimony and evidence upon whichthe appeal is to be based (F.S. 286.0105).

In accordance with the Americans with Disabilities Act of 1990, all persons who are disabled and who needspecial accommodations to participate in this proceeding because of that disability should contact the VillageClerk’s Office (305-866-4633), not later than two business days prior to such proceeding.

All Village Council meeting attendees, including Village staff and consultants, are subject to security screeningutilizing a metal detector and/or wand, prior to entering the Council Chamber, Conference Room, or other meetingarea located within Village Hall. This is for the safety of everyone. Thanks for your cooperation.

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Bal Harbour Village General Employees Retirement Board Minutes – June 12, 2018 P a g e | 1

Mayor Gabriel Groisman Assistant Mayor Seth E. Salver Councilman David J. Albaum Councilman Patricia Cohen Councilman Jeffrey P. Freimark John Oldenburg – Elected Staff Member Mauricio Escarra – Elected Staff Member

Village Manager Jorge M. Gonzalez Village Clerk Dwight S. Danie Village Attorneys Weiss Serota Helfman Cole & Bierman, P.L.

GENERAL EMPLOYEES’ RETIREMENT BOARD REGULAR MEETING MINUTES

JUNE 12, 2018 AT 7:00 P.M.

Bal Harbour Village Hall • 655 - 96th Street • Bal Harbour • Florida 33154

1. Call to Order/Roll Call – Mayor Groisman called the meeting to order at 7:00 P.M. The following were present: Mayor Gabriel Groisman

Assistant Mayor Seth E. Salver Councilman David J. Albaum Councilman Jeffrey P. Freimark

Pension Board Member John Oldenburg Pension Board Member Mauricio Escarra

Also Present: Ramiro Inguanzo, Assistant Village Manager

Dwight S. Danie, Village Clerk Robert Meyers, Village Attorney Amber Riviere, Finance Director Mei Fang, Pension Administrator John McCann of AndCo Consulting

2. Pledge of Allegiance – The Pledge of Allegiance, led by Mayor Gabriel Groisman. 3. Approval of Minutes: February 20, 2018 Motion to Approve February 20, 2018 Minutes was moved by Assistant Mayor Seth Salver and seconded by Councilman David J. Albaum.

Vote: The Motion carried by unanimous voice vote. (6-0).


4. Financial Report for First Quarter 2018 – John McCann Mr. McCann presented a handout listing asset classes and suggested that the Village has to diversify because what was going to be the best performing asset class for 2018 was unknown. He then stated that the Village’s pension plan was very nicely diversified for the good returns for 2017. Mr. McCann then presented the Performance Report for the quarter ending March 31, 2018 stating according to the report for the quarters ending September 30th and December 31st the Village had good returns and the market value of March 31st was $13.5 million, and it was a negative quarter (-.83) being that the Village is all in index funds. He summarized that for the fiscal year to date the percentage was 2.61%, the one-year was 8.42%, the 5-year was 7.25 and for the inception (16.25 years) the percentage was 5.56% net per year. He provided a one-page update indicating that market value since May was $120,000 more, and the fiscal year to date was 4.37% net, which was in line with the goal. He added that during the last meeting the Board expressed disappointment in the returns, reviewed the present asset allocation and presented different options. Councilman Freimark asked Mr. McCann to address what the Board should be looking for in a risk profile and what were the best practices regarding a risk profile for the Village’s plan. Mayor Groisman clarified the question for Mr. McCann stating that being that the Village’s risk allocated is nine percent, how does that compare to best practices for a plan like this, should the Village absorb more risk, or should the Village be less risky. Councilman Freimark added that if Mr. McCann were coming in cold and pitching the account, what you he would be recommending in terms of ranges that the Board would consider in for a risk profile. Mr. McCann responded that the Village is at the moment at a neutral/average place to be and that he was going to explore the outcome for different mixes. Mayor Groisman asked why the Board would switch allocation mid-year, to which Mr. McCann responded that this is for the long term, adding that if the Board was happy with the current mix, it may not have to do anything, but if the Board would like a better return, it may involve taking extra risk. Councilman Freimark stated that he had asked for a review and discussion regarding allocation and risk profiles and since Mr. McCann was the professional advising this Board, we would be looking for a recommendation for ranges of risk profiles that the Board should consider for the details of the best mix of asset allocation. Mr. McCann provided examples of different mixes and risks, three of which involved investing in property management (not REITs), asking if the Board had any interest in investing in real estate or adjusting the equity allocation. Councilman Freimark responded that he was still troubled in wanting to hear a recommendation, to which Mr. McCann did not want to give a recommendation until he


could gauge the interest of the Board. Councilman Freimark added that he would like to see what a portfolio would look like if we the Board went with ETFs in terms of a return profile, to which Mr. McCann responded there would be little change, that expenses were already low because we are totally index funds. Mr. McCann then suggested a mix including ten percent real estate to improve the fund’s performance, and added that, maybe, the Board would like to take his recommendation of a manager. Mayor Groisman stated that he is conservative in his investments, and even more so with the pension fund, and the idea investment in real estate made him nervous. He added that he would like to see a prospective from the recommended manager. Mr. Oldenburg stated that he had attended the Police Officers’ Pension Board when real estate managers provided presentations. He asked if this is the right mix, and should there be anything else the Board should be considering in addition to real estate. Mr. McCann state that his recommendation was that real estate was a great diversification and he suggested that the Board could have a special meeting to hear the real estate presentations, or, it could take his recommendation for a manager. He added that a new manager would need to be hired and that he would charge and additional $750 per quarter. Mr. Escarra stated he thinks it makes some sense to go with some real estate, and he asked Mr. McCann what he thought about the timing, to which Mr. McCann responded that the last ten years have been good, and if the value of the properties went down, the Village would still be making a return. Mr. Oldenburg stated that it would have been helpful to have comparables and he asked how the (real estate) managers had been selected (i.e. RFP), to which Mr. McCann responded that he had selected them according to the size of the fund. He then reviewed the projected returns for different mixes. Mayor Groisman then asked the Board members for their thoughts on investing in real estate. Councilman Albaum stated that he is not in favor of real estate, but would be in favor of switching allocations. Assistant Mayor Salver said that we need to make a change in that fixed equity is 35 percent and interest are going up, but he was not familiar with real estate investments. Councilman Freimark urged the Board not to bring personal experiences into making investment decisions, that it was responsibility of the consultant/manager hired by the Board to oversee the plan and make recommendations to the Board. He added that he was not prepared to support a change at this point in time. He suggested that the Board should meet without Mr. McCann being present. MOTION: A Motion to accept Mr. McCann’s report on the first quarter was moved by Assistant Mayor Seth Salver and seconded by Councilman David Albaum. VOTE: The Motion passed by unanimous voice vote (7-0).


There was a general consensus from the Board not to make a decision on asset allocation until the Board had a chance to meet and discuss the next courses of action. MOTION: A Motion to defer Agenda Item 3.B (Asset Allocation Analysis – May 2018) was moved by Mr. Oldenburg and seconded by Mr. Escarra. VOTE: The Motion passed by unanimous voice vote (7-0). Mr. McCann left the meeting. Mr. Oldenburg withdrew his discussion item. Penny Sepler (10275 Collins Ave.) asked Councilman Freimark to elaborate further, to which Councilman Freimark commented that he found Mr. McCann’s presentation less than satisfying. He stated his company had terminated a relationship with Thistle, Mr. McCann company at that time, for less than satisfactory performance. He said that he was going to ask how long the Village had utilized this consultant and when the last RFP had been undertaken. Ms. Sepler added that maybe it was time to bring in more options. Mayor Groisman agreed, say that the presentation lacked guidance. 5. Adjournment - The Meeting was adjourned at 7:39 p.m.

__________________________ Mayor Gabriel Groisman Chairman of the Retirement Board

Attest: _____________________________ Dwight S. Danie Secretary of the Retirement Board

RESOLUTION NO. GEP 2018-2019

A RESOLUTION OF THE GENERAL EMPLOYEES’ RETIREMENT BOARD OF BAL HARBOUR, VILLAGE, FLORIDA, APPROVING THE ADMINISTRATIVE BUDGET AND AUTHORIZING ADMINISTRATIVE EXPENDITURES FOR FISCAL YEAR 2018-19; PROVIDING FOR EXPENDITURE OF FUNDS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the General Employees’ Pension Plan is established under the Code of

Ordinances for the Village of Bal Harbour, Florida, Part II, Chapter 13, Article II; and

WHEREAS, the supervision of the Plan is directed by the Retirement Board, comprised of

the members of the Village Council and two General Employees; and

WHEREAS, the Retirement Board shall pay from the funds held in trust reasonable

expenses incurred in the administration of the Plan; and

WHEREAS, Northern Trust, serves as the Trustee of Plan assets, and requires

authorization for processing of administrative expenses; and

WHEREAS, on December 22, 2015, the Retirement Board approved a contract with

Benefits USA, Inc. for Plan Administration Services in the amount of $1,250/month and on May

14, 2016, approved a contract for Investment Advisory Services with Bogdan Consulting, LLC,

now & Co, in the amount of $1,995/month; and

WHEREAS, Gabriel Roeder Smith and Company has performed the actuarial services

required for the operation of the Plan since 1995.

NOW THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF BAL HARBOUR

VILLAGE, FLORIDA, AS FOLLOWS:

Section 1. Recitals. The above recitals are true and correct and are incorporated

herein by this reference.

Section 2. Plan Administrative Budget & Expense Approved. The Plan

Administrative Budget for Fiscal Year 2018-19 (the “Budget”), a copy of which is attached hereto

as Exhibit “A” is hereby approved and adopted, authorizing the expenditure of funds for the

provision of outlined recurring service expenses.

2

Section 3. Conflicts. All sections or parts of sections of Village Resolutions that

conflict with this Resolution are repealed to the extent of such conflict.

Section 4. Severability. The provisions of this Resolution are deemed to be

severable, and if any section, sentence, clause or phrase of this Resolution shall for any

reason be held to be invalid or unconstitutional, such decision shall not affect the validity of

the remaining sections, sentences, clauses, and phrases of the Resolution, but shall remain in

effect, it being the legislative intent that this Resolution shall stand notwithstanding the

invalidity of any part.

Section 5. Effective date. This Resolution shall be effective upon adoption.

PASSED AND ADOPTED this 12th day of September, 2018.

_____________________________________________Mayor Gabriel Groisman, Chair of the Board of Trustees

ATTEST:

Dwight S. Danie, Village Clerk, Board Secretary

APPROVED AS TO FORM AND LEGAL SUFFICIENCY:

Village AttorneyWeiss Serota Helfman Cole & Bierman, P.L.

ADMINISTRATIVE SERVICES AGREEMENT

Between

BAL HARBOUR VILLAGE EMPLOYEES’ PENSION PLAN AND TRUST

And

PENSION CONSULTANTS OF FLORIDA

This agreement made as of this day of ______ 2018, by and between the Bal Harbour Village Employees’ Pension Plan and Trust (hereinafter referred to as “Trust Fund”) and Pension Consultants of Florida (hereinafter referred to as “Administrator”).

WITNESSETH: WHEREAS, Section 13-26 of the Village of Bal Harbour Code establishes the Trust Fund and related trust for the purpose of providing benefits to certain employees and paying the expenses related thereto; and

WHEREAS, the Trust Fund’s Board of Trustees (“Board”) has determined it is in the best interest of the participants and beneficiaries of the Trust Fund to engage the services of the Administrator upon the terms and conditions hereinafter set forth. WHEREAS, Pension Consultants of Florida is regularly engaged in the business of rendering administrative management services to employee benefit plans and possesses the necessary skills and expertise to serve as the Administrator; and WHEREAS, Pension Consultants of Florida has agreed to perform the services required of the Administrator for the Trust Fund.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties agree as follows:

1. Scope of Services

The Administrator agrees to perform the work described herein and be bound by the terms and conditions set forth in this Agreement.

The Administrator shall perform the duties and responsibilities (“Services”), as described in Exhibit A of this Agreement (a) in a timely, diligent, and professional manner in accordance with best industry practices and standards, and; (b) in accordance with any time periods set forth in this Agreement and in any scheduling and sequencing specified by the Board.

2. Standard of Care

Administrator shall furnish efficient administration of the Trust Fund and shall use its best efforts to ensure that such Services being performed are complete in the best way and in the most expeditious and efficient manner consistent with the Boards best interests.

All Services shall be provided in a manner that is in the best interest of the participants and beneficiaries of the Trust Fund. Administrator shall familiarize itself with the basic documents under which the Trust Fund is established and operates, and shall render all Services in accordance with said documents. Administrator shall perform all obligations under this agreement as a fiduciary, governing by the rules, regulations and policy determinations made by the Board and in accordance with the provisions of and pursuant to Florida Statutes, Section 112.656(2).

3. Time is of the Essence

Administrator acknowledges that time is of the essence in providing the Services under this Agreement and agrees to assign adequate personnel sufficient to respond to requests for Service.

4. Term of Agreement

The Agreement shall become effective upon execution of both parties and shall continue until otherwise terminated in accordance with the Agreement.

5. Compensation

Administrator shall receive compensation in an amount not to exceed $24,000 for the Services provided under this Agreement. Said compensation shall include all direct and indirect costs.

The compensation shall be fixed for the initial term of the Agreement. Prior to the exercising of any option to renew this Agreement, which shall be the sole prerogative of the Board, the Administrator may request an increase in the compensation, which shall be based on the CPI for the Miami/Ft. Lauderdale area, but shall not exceed 3% for the renewal term of the Agreement.

Where the Administrator is required to incur expenses not reasonably anticipated (“Extraordinary Expenses”) as necessary to provide the Services the Administrator may be reimbursed for such expenses. Administrator must obtain prior written consent before incurring any Extraordinary Expenses.

6. Invoicing

Administrator shall invoice the Board no more than once per month, in arrears, for the Services provided in the previous month. Where an invoice includes a request for reimbursement of Extraordinary Expenses the Administrator shall provide documentation, satisfactory to the Board, substantiating the expenses. The invoice format and details shall be subject to the prior approval of the Board.

7. Notices

All notices hereunder shall be given in writing by (a) registered or certified mail, return receipt requested, postage prepaid, addressed to the Parties at the following respective addresses, or at such other address as may be designated in writing by either Party to the other, and shall be deemed delivered for all purposes hereunder upon deposit of same into the United States mail, or; (b) email to the address stated below. Notice shall be deemed delivered when sent.

To Board: Jorge Gonzalez, Village Manager

Bal Harbour Village 655 95th Street

Bal Harbour, FL 33154

Copy to: Village Attorney

Weiss Serota Helfman, Cole & Bierman, PL

200 East Broward Blvd. Suite 1900

Fort Lauderdale, FL 33301

To Administrator: Rick Rivera, Principal

Pension Consultants of Florida

15065 SW 87 Avenue

Palmetto Bal, Florida 33176

8. Indemnification

Administrator agrees to indemnify and hold harmless the Board and Trust Fund against any liability, claim, demand for personal injury, or property damage, and any other losses or expenses suffered or arising out of or caused by any act or omission of the Administrator, its agents or employees incurred in the performance of the Services under this Agreement.

The Administrator agrees it shall be liable to the Trust Fund for any damages or losses, which the Trust Fund or the fund may occur as the result of negligent or intentional acts or omissions of the Administrator.

9. Insurance

Administrator shall provide and keep current the following required insurance:

• Worker’s Compensation - Insurance in compliance with Florida Statutes, Chapter 440, as amended.

• Commercial General Liability - Coverage with limits of at least $300,000 combines single limit per occurrence for bodily injury and property damage.

• Business Automobile Lability - Coverage with limits not less than $500,000 each occurrence combined single limit for Bodily Injury and Property Damage including coverage’s for owned, hired, and non-owned vehicles and/or equipment as applicable. This policy of insurance shall be written in an “occurrence” based format.

• Professional Liability – Coverage in an amount not less than $500,000.

• Fidelity Bond – Coverage to be provided.

The Board shall be listed as an additional insured with respect to Commercial General Liability and Business Automobile Insurance coverage.

10. Review and Ownership

The Administrator agrees that the Services and records covered by this Agreement shall be subject to review, at all times, by representatives of the Board. The Administrator further agrees that all finished documents, studies, reports, etc. prepared by the Administrator shall become the property of the Board.

11. Trust Fund Records

a. The Trust Fund will turn over to the Administrator true copies of all records, reports, information, and other data pertaining to this Trust Fund. The Administrator may rely upon the completeness and accuracy of the records, reports, and data delivered to it.

b. Administrator shall be responsible for assisting in the maintenance of records of the funds in the computer system of the Trust Fund.

c. During the performance of the Services under the Agreement, the Administrator shall notify the Trust Fund of any information, records, or reports which are necessary to maintain the business of the Trust Fund and shall assist the Trust Fund in obtaining said information.

d. It is understood that all records maintained on behalf of the Trust Fund

by the Administrator, are the property of the Trust Fund, and upon termination of this agreement all records maintained by the Administrator shall be provided to the Trust Fund.

12. Public Records

All information, including records and other data, which may come into the possession of the Administrator shall be subject to disclosure and production to the extent required by the Public Records Act, Chapter 119, Florida Statutes, or upon compulsion of a subpoena issued by a court of competent jurisdiction, as approved by the Trust Fund.

13. Termination

The Board shall have the right to terminate this Agreement for cause should the Administrator fail to timely perform its Services in accordance with this Agreement or violates any covenant, terms, or requirements of this Agreement. The Board shall notify the Administrator in writing of such cause and may at its sole discretion allow the Administrator time to cure the issues leading to the termination.

Either party, at their sole discretion may terminate this Agreement for its convenience at any time upon a minimum of thirty (30) days written notice.

14. Compliance with Laws

Administrator shall observe and comply with all federal, state, county, and local laws, ordinances, and regulations that affect the performance of the Service. In the event the Administrator determines that a conflict exists between any applicable law, ordinance or regulation, the Administrator shall advise the Board and the Board will decide which law, ordinance or regulation shall be followed.

15. Assignment

Either party to this Agreement shall may not assign or transfer any interest in this Agreement without the prior written consent of both parties.

16. Conflict of Interest

Administrator covenants that it has presently no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the Services required under this Agreement.

17. Disputes

Any dispute under this Agreement which is not disposed of by agreement shall be mediated by an independent certified mediator and such decision

shall be non-binding. Mediation must occur prior to any action be filed in a court of law.

18. Attorney’s Fees

If Administrator breaches any provision of this agreement and the Trust Fund are required to retain an attorney (including general counsel or house counsel) in order to enforce this Agreement, and should the Trust Fund prevail or obtain any relief or remedy as a result of such action, then Administrator shall pay Board's reasonable attorneys' fees, costs and expenses, regardless of whether or not litigation is actually instituted. If litigation is actually instituted, the foregoing shall include trial and all appellate levels.

19. Governing Law

This Agreement has been executed in the State of Florida and shall be governed and construed in accordance with the laws of the State of Florida. Both parties agree that the venue for any dispute shall be in Miami-Dade County, Florida.

20. Successors and Assigns

This Agreement shall be binding and inure to the benefit of all successors and assigns of the parties hereto. Notwithstanding the foregoing, this Agreement shall be considered a personal services contract and the Administrator shall not assign any right or obligation under this Agreement without the Board’s prior express written consent, which may be withheld in the Board’s sole and absolute discretion.

21. Independent Contractor

Administrator shall perform the Services under this Agree as an independent contractor and shall not be considered an agent or employee of the Board.

22. Modification

This Agreement may be modified only by written instrument signed by both parties.

23. Non-Discrimination

Administrator by executing this Agreement, certifies that it does not discriminate in its membership or policies based on race, color, national origin, religion, sex, sexual orientation, familial status or handicap. Administrator further agrees that is not currently engaged in, nor will it engage in during the term of this Agreement the boycott of a person or business based in or doing business with a member of the World Trade Organization or any country with which the United States has free trade or other agreements aimed at ensuring nondiscriminatory trade regulations

24. Entire Agreement

This Agreement, including the exhibits hereto, constitutes the entire agreement between the Board and the Administrator, and the parties shall not be bound by any prior negotiation, representation or promise not contained herein.

IN WITNESS WHEREOF, the parties who caused this agreement to be executed on the date set forth.

DATED at Village of Bal Harbour, Florida this day of , 20158.

BAL HARBOUR VILLAGE EMPLOYEES’ PENSION PLAN AND TRUST

By:

TRUSTEE CHAIRPERSON

PENSION CONSULTANTS OF FLORIDA

BY: Print Name: Title:

EXHIBIT A

PENSION ADMINISTRATIVE SERVICES AGREEMENT

SCOPE OF SERVICES

1. Scope of Services

The Administrator shall be responsible for and in charge of all administrative services required of it by the Trust Fund for the proper and complete administration of the Trust Fund. Without limiting the generality of the foregoing, the Administrator shall perform the following services:

• Communicate with Trust Fund participants on pension related inquiries. • Properly, adequately and effectively respond to inquiries by participants

or their beneficiaries, on behalf of the Retirement Board and consult, as necessary, with Trust Fund’s designated service providers or by the Village of Bal Harbour, Florida.

• Process all applications for benefits under the Trust Fund. • Provide summary plan descriptions to plan participants. • Distribution of Annual Statements to Plan Members • Distribution of Quarterly Statements to Members in DROP • Processing of Retirement and DROP requests • Timely updating of annual DROP Investment Selection forms • Serve as liaison to the Retirement Board, the Actuary, Investment

Advisory Services, Northern Trust, Plan Auditors, and Village Administration for the Plan

• Implement action taken by the Board through the Plan affiliates • Coordination of timely COLA disbursements through the Trust for

participants • Retain current beneficiary information for Plan participants • Maintenance of Plan transactional ledger activity and preparation of trial

balance for annual audit • Preparation of Retirement Board Agenda and Coordination with the

Chair and Village Clerk (Board Secretary by Code) for execution on Board action, and participation of Plan affiliates

• Attend all meetings of the Trust Fund and maintain the minutes of those meetings.

• Assemble, prepare and distribute all meeting agenda and related materials for the Board.

• Implement all administrative related decisions of the Retirement Board

with regard to the Trust Fund’s daily operations. • Maintain all documents as may be required by the Trust Fund. • Maintain statistical data for the Trust Fund, the Trust Fund’s auditor and

actuary, including vesting, benefit accrual, compensation, and eligibility history of participants when such are needed or required.

• Assist in the preparation and filing of all necessary government reports. • Assist in the design and development of all communications between the

Trust Fund and the participants, and act as the conduit for all communication between the Retirement Board and the participants.

• Attend any special meetings of the participants, as determined by the Trust Fund, for the purpose of assisting and explaining benefit coverage to participants and beneficiaries.

• Develop, establish, and control proper procedures for the recording of all contributions, benefit payments, and disbursements of the Trust Fund.

• Assist the Trust Fund and its professional advisors in the preparation of records and reports to be filed with government departments or agencies or which are necessary to be disclosed and distributed to participants and beneficiaries.

• Perform such other administrative and related advisory functions and services as may from time to time be requested by the Trust Fund.

. 2. Exclusions From The Scope of Services

The Scope of Services shall not include:

• Administrator shall not be responsible for the performance of auditing, legal, or financial advisory services.

• Administrator shall not; (a) exercise and discretionary authority or discretionary control with respect to the management and administration of the Trust Fund, and; (b) exercise any independent authority or control with respect to the management or disposition of any assets of the Trust Fund, and; (c) render investment advice with respect to any monies or property of the Trust Fund.

TO BE INSERTED HERE:

RESOLUTION FOR SELECTION OF GENERAL EMPLOYEES’

PENSION PLAN ADMINISTRATOR

<CBDoc TenantId="2" EntityTypeId="3100" EntityId="2621" DocumentTypeId="1" EffectiveDate="06/30/2018" Interval="3" Description="Equity Analysis" />

Investment Performance Review

Period Ending June 30, 2018

Bal Harbour General

1 Market Environment Page 1

2 Compliance Report Page 10

3 Asset Allocation Compliance Page 11

4 Asset Allocation Pie Chart Page 12

5 Asset Allocation & Performance Trailing Periods Page 14

6 Asset Allocation & Performance Fiscal Year Periods Page 15

7 Historical Rolling Performance Total Fund Page 16

8 Historical Rolling Performance Total Fund Policy Page 17

9 NT Total Returns Based Analysis Page 18

10 Historical Risk Statistics Total Fund Page 20

11 NT Combined Equity Returns Based Analysis Page 21

12 Historical Risk Statistics Combined Equity

13 NT Fixed Income Returns Based Analysis Page 24

14 Historical Risk Statistics NT Fixed Income Page 26

15 Benchmark History Page 27

16 Definitions & Disclosure Pages Page 28

Table Of Contents

2nd Quarter 2018 Market Environment

Page 1

Market returns were mixed across major equity and fixed income indices forthe 2nd quarter of 2018. Broad domestic equity indices had healthy gains assupportive economic and corporate earnings data, helped by a fiscal stimulustailwind resulting from the Republican Party led tax reform passed in late 2017,continued to push domestic stocks higher. International indices did not fare aswell during the period, posting negative returns in US dollar (USD) terms, asmarkets were hurt by relatively soft economic data, geopolitical concerns anda strengthening USD. Fixed income returns were somewhat flat for the quarterwith the various sector segments producing minor gains or losses. Despite theFederal Reserve’s (Fed) ongoing tightening of monetary policy and thepotential for global trade disruptions resulting from Trump administrationprotectionist trade policies, economic momentum in the US continued to fuelinvestor demand for domestic equities. The US stock market represented bythe Russell 3000 Index returned 3.9% and 14.8% for the quarter and 1-yearperiod respectively.

International equity posted negative returns for the quarter with emergingmarkets stocks falling the greatest degree. The developed market MSCI EAFEIndex lost -1.2% as macroeconomic data abroad, while still signaling acontinuation in global growth, appeared to slow throughout the quarter.International markets were also affected by investor concerns surroundingongoing political developments in various countries and continued uncertaintyaround the outlook for global trade relations. International market returns alsofaced a currency effect headwind as the USD appreciated against most othercurrencies during the period. This combination of factors had the greatestinfluence on emerging market equities with the MSCI Emerging Markets Indexposting a sharp decline of -8.0%. One-year returns remain broadly positivewith the MSCI EAFE and MSCI Emerging Markets indices returning 6.8% and8.2% respectively.

Interest rates on the US Treasury Yield Curve rose across all maturities duringthe 2nd quarter. The increase in interest rates was most pronounced in short-term maturities resulting in further flattening of the yield curve. The relativelylarge increase at the short-end of the curve was partially due to the Fedsdecision to tighten monetary policy by increasing short-term interest rates forthe second time this year during their June meeting. Also significant was thechange in the Fed’s forecasted schedule for interest rate increases, whichnow projects two potential additional rate increases in 2018, where it hadpreviously forecast just one. The broad market Bloomberg Barclays USAggregate Index was modestly negative for both the 2nd quarter and the 1-year time period, returning -0.2% and -0.4% respectively. Corporate issueswere the worst performing investment grade sector during the quarter,returning -1.0% as credit spreads continued to widen through 2018.

Source: Investment Metrics

The Market EnvironmentMajor Market Index Performance

As of June 30, 2018

0.4%

-1.0%0.2%

0.8%0.1%

-0.2%

7.8%2.8%3.6%

3.9%3.4%

-8.0%-1.2%

-2.6%

-10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0%

3-Month T-Bill

Bbg Barclays Corp IGBbg Barclays MBS

Bbg Barclays US TIPSBbg Barclays US GovtBbg Barclays US Agg

Russell 2000Russell MidCap

Russell 1000Russell 3000

S&P 500

MSCI Emerg MktsMSCI EAFE

MSCI ACWxUS

Quarter Performance

1.3%

-0.8%0.1%

2.1%-0.6%-0.4%

17.6%

12.3%14.5%14.8%

14.4%

8.2%6.8%

7.3%

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

3-Month T-Bill

Bbg Barclays Corp IGBbg Barclays MBS

Bbg Barclays US TIPSBbg Barclays US GovtBbg Barclays US Agg

Russell 2000Russell MidCap

Russell 1000Russell 3000

S&P 500

MSCI Emerg MktsMSCI EAFE

MSCI ACWxUS

1-Year Performance

Page 2

Source: Investment Metrics

The Market EnvironmentDomestic Equity Style Index Performance

As of June 30, 2018

US equity index returns were positive across the style and capitalizationspectrum during the 2nd quarter of 2018. Markets were encouraged by theongoing strength in US economic data and corporate earnings. Positive datareleases in unemployment, retail sales, consumer consumption, GDP andinvestor sentiment highlighted the continued health of the US economy.Additionally, Q1 2018 corporate earnings announced throughout the periodgrew at an impressive rate as corporate profits were beneficiaries of the late2017 Republican Party tax reforms. Returns for the period were tempered byglobal trade uncertainty as tariffs on steel and aluminum imported fromCanada, Mexico and the European Union took effect with the possibility ofadditional tariffs aimed at China and foreign auto producers being considered.The Trump administration also announced the US withdrawal from the Irannuclear accord, proposing new sanctions, which could disrupt oil markets inthe future, and made progress toward a denuclearization deal with NorthKorea.

During the quarter, small cap stocks outperformed mid and large cap equitiesfor style and core indices. This is partially due to the increased tax reformbenefit small cap companies will receive relative to large caps. Small capstocks have historically paid higher taxes relative to large cap companies sincethey typically generate more of their revenue in the US. More globally orientedlarge caps also faced a considerable headwind from the recent USD strength.Large cap companies generate more revenue outside of the US and anappreciating USD makes US exports more expensive to foreign consumers.The small cap Russell 2000 Index returned 7.8% during the period, while thelarge cap Russell 1000 Index returned 3.6%. Small caps also outperformedover the 1-year period with the Russell 2000 returning 17.6% over the trailingyear while the Russell 1000 posted a return of 14.5%.

Style index performance was mixed during the quarter with growth companiesoutperforming in large- and mid-cap, but value stocks outperforming in thesmall-cap space. The Russell 2000 Value Index was the best performing styleindex for the period returning a notable 8.3% for the quarter. Returns over thetrailing year continue to show significant outperformance of growth indicesrelative to their value counterparts with the return of the Russell 1000 GrowthIndex more than tripling the return of the Russell 1000 Value Index. Growthbenchmarks benefitted from larger exposures to more cyclical names withinthe information technology, consumer discretionary, health care and industrialssectors. They also benefitted from underweights to more defensive sectorssuch as REITs, utilities and telecom.

7.2%

7.8%

8.3%

3.2%

2.8%

2.4%

5.8%

3.6%

1.2%

5.9%

3.9%

1.7%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

2000 Growth

2000 Index

2000 Value

MidCap Growth

MidCap Index

MidCap Value

1000 Growth

1000 Index

1000 Value

3000 Growth

3000 Index

3000 Value

Quarter Performance - Russell Style Series

21.9%

17.6%

13.1%

18.5%

12.3%

7.6%

22.5%

14.5%

6.8%

22.5%

14.8%

7.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

2000 Growth

2000 Index

2000 Value

MidCap Growth

MidCap Index

MidCap Value

1000 Growth

1000 Index

1000 Value

3000 Growth

3000 Index

3000 Value

1-Year Performance - Russell Style Series

Page 3

The Market EnvironmentGICS Sector Performance & (Sector Weight)

As of June 30, 2018

Source: Morningstar Direct

Sector performance was mixed across large cap sectors for the 2nd quarter of2018. Seven of eleven sectors had positive returns for the quarter and six ofeleven economic sectors outpaced the Russell 1000 Index return. Energy wasthe best performing sector during the quarter, returning 14.1%, as an OPECannounced increase in crude oil production was overshadowed by supplyconcerns in Iran, Venezuela and Libya, resulting in considerably higher oilprices. The consumer discretionary sector also performed well on the back ofstrong retail sales and increased consumer spending, gaining 7.9% for theperiod. Technology stocks continued their climb, returning 6.8% over thequarter. Technology names now account for nearly 25% of the market cap ofthe Russell 1000 Index. The largest detractors for the quarter were thefinancials, industrials and consumer staples sectors which returned -3.1%, -2.7% and -1.9% respectively. Over the trailing 1-year period, technology wasthe best performing sector by a relatively wide margin returning an impressive31.3% and the consumer discretionary and energy sectors also posted returnsgreater than 20%. Ten of eleven large cap economic sectors posted positivereturns for the 1-year period with consumer staples being the only sector topost negative performance, returning -3.2%.

Quarterly results for small cap sectors were higher relative to their largecapitalization counterparts. All sectors had positive returns during the periodwith seven of eleven economic sectors outpacing the Russell 2000 Indexreturn for the quarter. Like the large cap index sector performance, industrialsand financials were relative underperformers for the 2nd quarter. Financialswere hurt by a flattening yield curve and concerns over global trade weighedon industrials. Quarterly performance on industrials and financials was 3.1%and 4.1% respectively. Energy was the best performing sector in the Russell2000 as well, returning a notable 20.6%. However, there were severaldifferences, particularly in consumer staples and telecom where there wassignificant outperformance relative to their large cap counterparts. Small capsectors beat large cap sectors in those two categorizations by over 10.0%during the quarter. Over the trailing 1-year period, all eleven sectors postedgains. Health care stocks were the best performers within the Russell 2000 forthe trailing year returning a solid 29.5%. Energy and technology also postedreturns over 20% for the 1-year period.

Using S&P 500 sector valuations as a proxy for the market, forward P/E ratiosfor six of the eleven GICS sectors were higher than their long-term averages atquarter-end. Using these historical P/E measures, the utilities, consumerdiscretionary and real estate sectors appear the most extended. In contrast thetelecommunications, technology and health care sectors were trading at adiscount to their long-term average P/E ratios.

4.5%

1.3%

4.8%

9.9%

31.3%

6.7%

7.3%

9.8%

22.3%-3.2%

22.0%

4.2%

-0.7%

7.3%

2.7%

6.8%-2.7%

3.9%-3.1%

14.1%

-1.9%

7.9%

-5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Utilities (2.8%)

Telecom Services (1.8%)

Real Estate (3.5%)

Materials (3.1%)

Info Technology (24.8%)

Industrials (10.3%)

Health Care (13.4%)

Financials (14.7%)

Energy (6.0%)

Consumer Staples (6.6%)

Consumer Disc (13.0%)

Russell 1000 Quarter 1-Year

7.8%

2.8%

5.4%

11.3%

20.9%

16.4%

29.5%12.5%

21.5%

17.0%

18.9%

8.4%

11.1%

13.2%

3.6%

7.4%

3.1%

10.1%

4.1%

20.6%

12.1%

9.6%

0.0% 10.0% 20.0% 30.0%

Utilities (3.3%)

Telecom Services (0.6%)

Real Estate (6.4%)

Materials (4.3%)

Info Technology (17.4%)

Industrials (14.8%)

Health Care (16.7%)

Financials (18.0%)

Energy (4.0%)

Consumer Staples (2.4%)

Consumer Disc (12.1%)

Russell 2000 Quarter 1-Year

Page 4

The Market EnvironmentTop 10 Index Weights & Quarterly Performance for the Russell 1000 & 2000

As of June 30, 2018

Source: Morningstar Direct

Top 10 Weighted Stocks Top 10 Weighted Stocks

Russell 1000 Weight 1-Qtr Return

1-Year Return Sector Russell 2000 Weight 1-Qtr

Return1-Year Return Sector

Apple Inc 3.53% 10.8% 30.5% Information Technology Five Below Inc 0.24% 33.2% 97.9% Consumer DiscretionaryMicrosoft Corp 2.89% 8.5% 45.8% Information Technology Etsy Inc 0.23% 50.4% 181.3% Information TechnologyAmazon.com Inc 2.68% 17.4% 75.6% Consumer Discretionary Blackbaud Inc 0.22% 0.8% 20.1% Information TechnologyFacebook Inc A 1.79% 21.6% 28.7% Information Technology LivaNova PLC 0.22% 12.8% 63.1% Health CareBerkshire Hathaway Inc B 1.40% -6.4% 10.2% Financials Haemonetics Corp 0.22% 22.6% 127.1% Health CareJPMorgan Chase & Co 1.37% -4.8% 16.5% Financials Entegris Inc 0.22% -2.4% 55.4% Information TechnologyExxon Mobil Corp 1.36% 12.0% 6.6% Energy FibroGen Inc 0.21% 35.5% 93.8% Health CareAlphabet Inc C 1.32% 8.1% 22.8% Information Technology Idacorp Inc 0.21% 5.2% 10.9% UtilitiesAlphabet Inc A 1.31% 8.9% 21.5% Information Technology Medidata Solutions Inc 0.21% 28.3% 3.0% Health CareJohnson & Johnson 1.26% -4.6% -5.8% Health Care Loxo Oncology Inc 0.21% 50.4% 116.3% Health Care

Top 10 Performing Stocks (by Quarter) Top 10 Performing Stocks (by Quarter)




Sarepta Therapeutics Inc 0.03% 78.4% 292.1% Health Care Turtle Beach Corp 0.01% 746.8% 625.7% Consumer DiscretionaryWayfair Inc Class A 0.03% 75.9% 54.5% Consumer Discretionary Solid Biosciences Inc 0.01% 375.1% N/A Health CareChesapeake Energy Corp 0.02% 73.5% 5.4% Energy Tandem Diabetes Care Inc 0.04% 344.0% 175.2% Health CareWhiting Petroleum Corp 0.02% 55.8% 139.2% Energy Intelsat SA 0.03% 343.1% 444.4% Telecommunication ServicesTwitter Inc 0.12% 50.5% 144.4% Information Technology Evolus Inc 0.01% 210.0% N/A Health CareAdvanced Micro Devices Inc 0.05% 49.2% 20.1% Information Technology California Resources Corp 0.09% 165.0% 431.5% EnergyExact Sciences Corp 0.03% 48.3% 69.0% Health Care TransEnterix Inc 0.03% 156.5% 514.1% Health CareUnder Armour Inc C 0.02% 46.9% 4.6% Consumer Discretionary Penn Virginia Corp 0.05% 142.3% 131.0% EnergyTwilio Inc A 0.02% 46.7% 92.4% Information Technology Regenxbio Inc 0.09% 140.4% 263.3% Health CareWeatherford International PLC 0.01% 43.7% -15.0% Energy Madrigal Pharmaceuticals Inc 0.07% 139.5% 1620.1% Health Care

Bottom 10 Performing Stocks (by Quarter) Bottom 10 Performing Stocks (by Quarter)




Nektar Therapeutics Inc 0.03% -54.0% 149.8% Health Care Arsanis Inc 0.00% -84.1% N/A Health CareAlkermes PLC 0.02% -29.0% -29.0% Health Care Menlo Therapeutics Inc 0.00% -78.4% N/A Health CareCommScope Holding Co Inc 0.02% -26.9% -23.2% Information Technology Jounce Therapeutics Inc 0.01% -65.7% -45.4% Health CareAmerican Airlines Group Inc 0.06% -26.8% -23.9% Industrials Prothena Corp PLC 0.03% -60.3% -73.1% Health CareArconic Inc 0.03% -25.9% -24.1% Industrials Biglari Holdings Inc 0.01% -55.1% -54.1% Consumer DiscretionaryCopa Holdings SA Class A 0.01% -25.9% -17.0% Industrials Catalyst Biosciences Inc 0.01% -54.8% 151.0% Health CareFirst Solar Inc 0.02% -25.8% 32.0% Information Technology Recro Pharma Inc 0.00% -54.4% -28.6% Health CareManpowerGroup Inc 0.02% -24.4% -21.5% Industrials scPharmaceuticals Inc 0.00% -54.4% N/A Health CareSwitch Inc Class A 0.00% -23.3% N/A Information Technology Agenus Inc 0.01% -51.8% -41.9% Health CareSkechers USA Inc 0.02% -22.8% 1.7% Consumer Discretionary Syndax Pharmaceuticals Inc 0.00% -50.7% -49.7% Health Care

Page 5

Source: MSCI Global Index Monitor (Returns are Net)

Broad international equity returns were mixed for the quarter. Many developedmarkets were positive in local currency terms, but negative in USD termswhereas emerging markets posted negative returns in both local currency andUSD. Performance was largely driven by the same catalysts as the US equitymarkets with global macroeconomic data remaining generally positive, butreturns being tempered by global trade tensions and ongoing politicaluncertainty. A strengthening USD caused by relatively strong US economicfundamentals and the continued divergence in global monetary policy hurt USinvestors in international markets. The MSCI ACWI ex US Index gained 1.9%in local currency terms, but lost -2.6% in USD terms during the second quarter.Returns over the 1-year period remain positive in both local currency and USDterms with the MSCI ACWI ex US returning 7.4% and 7.3% respectively.

Second quarter results for developed market international indices weregenerally positive in local currency terms with the MSCI EAFE Index returning3.5%. However, an appreciating USD pushed returns for US investors intonegative territory, with the index returning -1.2% in USD terms. Developedmarkets were pushed higher by broadly positive, but slowing, global economicand earnings data despite several significant political events in Europe duringthe quarter. There was considerable volatility surrounding the formation of acoalition government in Italy which called into question Italy’s future as part ofthe European Union. Spain also had a change in leadership after a politicalfundraising scandal led to a vote of no-confidence in Prime Minister Rajoy,forcing him to step down. World markets also reacted to the implementation ofnew tariffs on US imports of steel and aluminum and the possibility of newtariffs in the future, including tariffs on auto imports, which would negativelyaffect producers in Europe and Japan. The MSCI EAFE Index returned 6.1%and 6.8% for the last twelve months in local currency and USD termsrespectively.

Emerging markets trailed developed markets for the 2nd quarter, postinglosses in local currency terms that were then intensified by the strengtheningUSD. The MSCI Emerging Markets Index returned -3.5% and -8.0% in localcurrency and USD terms respectively. The main factors affecting emergingmarkets were the threat of continued protectionist trade policies from the UScreating uncertainty for export focused economies and rising US interest ratescoupled with an appreciating USD. Many emerging market countries andcompanies issue debt denominated in USD and the combination of higherinterest rates and a relatively weaker local currency can put stress on thebalance sheets of these borrowers, especially those heavily dependent onexternal capital. One year returns for the MSCI Emerging Market Index were10.5% in local currency terms and 8.2% in USD terms.

The Market EnvironmentInternational and Regional Market Index Performance (Country Count)

As June 30, 2018

-8.1%

-3.4%

-0.3%

-3.5%

2.3%

4.2%

3.5%

3.8%

1.9%

-17.8%

-5.9%

-10.2%

-8.0%

-1.4%

-1.2%

-1.2%

-0.8%

-2.6%

-20.0% -15.0% -10.0% -5.0% 0.0% 5.0%

EM Latin Amer (5)

EM Asia (9)

EM EMEA (10)

Emerging Mkt (24)

Pacific (5)

Europe & ME (16)

EAFE (21)

WORLD x US (22)

AC World x US (46)

Quarter Performance USD Local Currency

10.9%

10.4%

10.8%

10.5%

9.6%

4.2%

6.1%

6.5%

7.4%

-0.2%

10.1%

5.6%

8.2%

9.9%

5.2%

6.8%

7.0%

7.3%

-2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

EM Latin Amer (5)

EM Asia (9)

EM EMEA (10)

Emerging Mkt (24)

Pacific (5)

Europe & ME (16)

EAFE (21)

WORLD x US (22)

AC World x US (46)

1-Year Performance USD Local Currency

Page 6

The Market EnvironmentUS Dollar International Index Attribution & Country Detail

As of June 30, 2018

Source: MSCI Global Index Monitor (Returns are Net in USD)

MSCI - EAFE Sector Weight Quarter Return 1-Year ReturnConsumer Discretionary 12.4% -2.6% 10.9%Consumer Staples 11.3% 0.4% 3.1%Energy 6.1% 11.2% 35.8%Financials 19.8% -6.2% -0.5%Health Care 10.7% 1.9% 1.7%Industrials 14.3% -2.2% 7.3%Information Technology 6.8% -0.2% 15.0%Materials 8.2% 0.7% 16.7%Real Estate 3.5% -0.4% 7.8%Telecommunication Services 3.6% -4.8% -6.3%Utilities 3.3% 0.5% 5.2%Total 100.0% -1.2% 6.8%

MSCI - ACWIxUS Sector Weight Quarter Return 1-Year ReturnConsumer Discretionary 11.2% -3.5% 8.4%Consumer Staples 9.7% -0.7% 2.9%

Energy 7.4% 7.3% 27.5%Financials 21.9% -7.3% 1.7%

Health Care 8.1% 1.4% 3.2%Industrials 11.7% -2.7% 5.9%Information Technology 11.9% -2.9% 15.5%

Materials 8.2% -0.4% 16.1%Real Estate 3.2% -3.0% 6.9%

Telecommunication Services 3.7% -6.0% -6.3%Utilities 3.0% -1.5% 3.8%Total 100.0% -2.6% 7.3%

MSCI - Emerging Mkt Sector Weight Quarter Return 1-Year ReturnConsumer Discretionary 9.8% -7.1% -0.2%Consumer Staples 6.7% -6.2% 3.3%Energy 7.2% -4.7% 24.9%Financials 22.8% -12.7% 5.5%Health Care 3.2% -5.0% 22.4%Industrials 5.2% -11.2% -5.9%Information Technology 27.9% -5.1% 15.2%Materials 7.6% -5.5% 14.0%Real Estate 3.0% -11.2% 5.6%Telecommunication Services 4.3% -9.7% -7.5%Utilities 2.4% -8.1% 2.2%Total 100.0% -8.0% 8.2%

MSCI-EAFE MSCI-ACWIxUS Quarter 1- YearCountry Weight Weight Return ReturnJapan 24.0% 16.4% -2.8% 10.5%United Kingdom 18.0% 12.3% 3.0% 10.0%France 11.0% 7.5% -0.5% 9.9%Germany 9.5% 6.5% -4.0% 2.6%Switzerland 7.8% 5.3% -2.7% -3.4%Australia 7.0% 4.8% 5.2% 8.7%Hong Kong 3.6% 2.5% -1.2% 9.2%Netherlands 3.6% 2.5% -1.8% 9.2%Spain 3.1% 2.1% -4.4% -3.6%Sweden 2.6% 1.8% -3.7% -4.6%Italy 2.4% 1.7% -7.3% 8.4%Denmark 1.7% 1.1% -7.0% 0.9%Singapore 1.3% 0.9% -7.5% 7.9%Belgium 1.1% 0.7% -6.0% 1.7%Finland 1.0% 0.7% 1.3% 10.4%Norway 0.7% 0.5% 2.3% 27.1%Ireland 0.6% 0.4% 2.0% 5.3%Israel 0.5% 0.4% 10.9% -4.6%Austria 0.2% 0.2% -10.6% 8.9%New Zealand 0.2% 0.2% 5.8% 1.7%Portugal 0.2% 0.1% 1.2% 15.8%Total EAFE Countries 100.0% 68.4% -1.2% 6.8%Canada 6.6% 4.7% 9.1%Total Developed Countries 75.0% -0.8% 7.0%China 8.2% -3.5% 21.2%Korea 3.7% -9.2% 3.4%Taiwan 2.9% -6.3% 3.9%India 2.2% -0.6% 6.5%South Africa 1.6% -11.9% 6.4%Brazil 1.5% -26.4% -0.3%Russia 0.9% -6.0% 26.0%Mexico 0.7% -3.6% -9.3%Malaysia 0.6% -11.4% 5.6%Thailand 0.5% -15.0% 12.0%Indonesia 0.5% -12.5% -13.1%Chile 0.3% -11.5% 12.5%Poland 0.3% -11.6% -6.2%Philippines 0.2% -11.2% -13.9%Qatar 0.2% 3.5% 3.5%Turkey 0.2% -25.9% -26.3%United Arab Emirates 0.2% -4.4% -6.0%Colombia 0.1% 6.7% 20.1%Peru 0.1% -3.2% 30.7%Greece 0.1% -2.2% -9.2%Hungary 0.1% -14.4% -0.6%Czech Republic 0.0% -5.4% 19.4%Egypt 0.0% -8.1% 1.9%Pakistan 0.0% -20.8% -30.3%Total Emerging Countries 25.0% -8.0% 8.2%Total ACWIxUS Countries 100.0% -2.6% 7.3%

Page 7

Source: Bloomberg

The Market EnvironmentDomestic Bond Sector & Broad/Global Bond Market Performance (Duration)

As of June 30, 2018

Broad fixed income benchmarks had mixed results during the 2nd quarter.Interest rates rose across all maturities on the US Treasury Yield Curve. Earlyin the quarter, rates rose as positive economic data and signs of higherinflation increased investor expectations for another Fed interest rate hike.However, volatility caused by ongoing geopolitical developments later in thequarter led to an increase in risk aversion and demand for relatively safeassets, driving rates lower through the rest of the quarter. Interest rates on the10-year Treasury reached a near-term high of 3.11% in mid-May before fallingto end the quarter at 2.87%. As expected, the Federal Open MarketCommittee (FOMC), decided to increase short-term interest rates by 25 basispoints at their June meeting. This is the second rate hike of 2018. The currentFed Funds Rate target range sits at 1.75%-2.00%. The FOMC also updatedtheir forecast for future rate increases, now expecting two potential additionalhikes in 2018 and three in 2019. The yield curve continued to flatten throughthe quarter as short-term yields rose at a greater rate than longer-term yields.The difference in yields between the 2-year and 10-year Treasury now sits atjust 0.3%. The Fed is also continuing to reduce the size of its balance sheet byslowing its pace of reinvestment as the securities it holds mature. TheBloomberg Barclays US Aggregate Index was relatively flat during the quarter,falling -0.2%. It was also negative for the 1-year period returning -0.4%.

Within investment grade credit, higher quality corporate issues outperformedlower quality issues for the quarter as credit spreads widened and investorslooked for safety amid increased financial market volatility. On an absolutebasis, without negating the duration differences in the sub-indices, AAA ratedcredit was the best performing investment grade credit quality segmentreturning 0.2% for the quarter. High yield debt outperformed relative toinvestment grade credit, returning 1.0%, as spreads widened to a lesserdegree for these issues and the index benefitted from its lower duration. Partof the reason for the increased spread widening for investment grade issuesrelative to high yield issues was continued selling pressure from companiesrepatriating foreign cash reserves in response to the new tax code and lowerdemand from foreign investors due to increased hedging costs and a strongerUSD.

Of the Bloomberg Barclays US Aggregate Index’s three broad sectors, USmortgage backed securities (MBS) were the best performing investment gradesector through the quarter, narrowly outperforming US Treasuries. Corporatecredit underperformed as credit spreads widened and investors reacted tomarket volatility by moving into higher quality issues. Higher durations relativeto other index sectors also acted as a headwind to these issues. TheBloomberg Barclays US Corporate IG Index returned -1.0%. While TIPS werealso positive, it is important to note these Treasury issues are not part of theBloomberg Barclays US Aggregate Index.

-2.8%-4.8%

0.1%

-0.2%

0.8%

-1.0%

0.2%

0.1%

1.0%

-1.2%

-0.9%

-0.2%

0.2%

-5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0%

Multiverse (6.9)

Global Agg x US (7.9)

Intermediate Agg (4.3)

Aggregate (6.0)

U.S. TIPS (4.9)

U.S. Corporate IG (7.3)

U.S. Mortgage (5.1)

U.S. Treasury (6.1)

U.S. High Yield (3.9)

Baa (7.4)

A (7.2)

AA (5.9)

AAA (5.6)

Quarter Performance

1.3%

2.8%-0.3%

-0.4%

2.1%

-0.8%

0.1%

-0.6%

2.6%

-0.6%

-1.0%

0.0%

-0.3%

-2.0% -1.0% 0.0% 1.0% 2.0% 3.0%

Multiverse (6.9)

Global Agg x US (7.9)

Intermediate Agg (4.3)

Aggregate (6.0)

U.S. TIPS (4.9)

U.S. Corporate IG (7.3)

U.S. Mortgage (5.1)

U.S. Treasury (6.1)

U.S. High Yield (3.9)

Baa (7.4)

A (7.2)

AA (5.9)

AAA (5.6)

1-Year Performance

Page 8

Source: US Department of Treasury, FRED (Federal Reserve of St. Louis)

The Market EnvironmentMarket Rate & Yield Curve Comparison

As of June 30, 2018

Relative to their domestic counterparts, global fixed income indices underperformed during the quarter. The relatively high duration of these indices acted as a headwind to performance in the current quarter as interest rates increased. The returns of these indices are also significantly influenced by fluctuations in their currency denomination relative to the USD. During the 2nd quarter the USD strengthened against most other currencies, negatively impacting the returns on global bond indices. The return on global bonds, as represented by the Bloomberg Barclays Global Aggregate ex US Index, was -4.8% for the quarter. However, when viewed over the trailing year, global issues have outperformed domestic securities, returning 2.8%. As the global economy continues to recover, several international central banks have started to move toward less accommodative postures. Notably, the ECB, is planning to slow its monthly bond purchase program in September, reducing new purchases to 15 billion euro per month from 30 billion euro per month, as well as forecasting an end to the program by the end of the year assuming the eurozone recovery continues to flourish. However, they have indicated a continuation of reinvestment in maturing securities and would likely not raise interest rates from current levels until summer 2019. In contrast, the Bank of Japan will continue current stimulus programs and the Bank of England backed away from a telegraphed interest rate hike after disappointing economic data led them to lower their forecasts for future growth.

Much of the index performance detailed in the bar graphs on the previous page is visible on a time series basis by reviewing the line graphs to the right. The ‘1-Year Trailing Market Rates’ chart illustrates that the 10-year Treasury yield (green line) rose significantly during the first half of the 2nd quarter, rising to a near-term high of 3.11% before falling to 2.87% to end the period. The blue line illustrates changes in the BAA OAS (Option Adjusted Spread). This measure quantifies the additional yield premium that investors require to purchase and hold non-Treasury issues. This line illustrates a steady increase in credit spreads through the first two quarters of 2018. This increase is equivalent to an interest rate increase on corporate bonds, which produces an additional headwind for corporate bond index returns. These credit spreads have widened by about 17 basis points over the last 3-months. The green band across the graph illustrates the gradual increase in the Federal Funds Rate (three in the last twelve months) due to the continued unwinding of accommodative US monetary policy.

The lower graph provides a snapshot of the US Treasury yield curve at the end of each of the last four calendar quarters. As mentioned, the yield curve continues to flatten as yields on shorter-term maturities have risen more than interest rates on the long end of the curve. The upward momentum of interest rates as well as a general flattening of the yield curve are clearly visible over both the 2nd quarter and the last twelve months.

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1 mo 3 mo 6 mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr

Treasury Yield Curve

9/30/2017 12/31/2017 3/31/2018 6/30/2018

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18

1-Year Trailing Market Rates

Fed Funds Rate TED Spread3-Month Libor BAA OAS10yr Treasury 10yr TIPS

Page 9

Yes No

The total plan return equaled or exceeded the total plan benchmark over the trailing three year period. ●

The total plan return equaled or exceeded the total plan benchmark over the trailing five year period. ●

The total return lies in the top 40th percentile of its peers over the trailing three year period. ●

The total return lies in the top 40th percentile of its peers over the trailing five year period. ●

The total plan return equaled or exceeded the 7.5% target rate of return over the trailing three year period ●

The total plan return equaled or exceeded the 7.5% target rate of return over the trailing five year period ●

Yes No

Total equity return equaled or exceeded the benchmark over the trailing three year period. ●

Total equity return equaled or exceeded the benchmark over the trailing five year period. ●

The three year return ranks in the top 40% of its peers. ●

The five year return ranks in the top 40% of its peers. ●

The total equity allocation was less than or equal to 65% of the total fund value at market. ●

Yes No

Total fixed income return equaled or exceed the benchmark over the trailing three year period. ●

Total fixed income return equaled or exceed the benchmark over the trailing five year period. ●

The three year return ranks in the top 40% of its peers. ●

The five year return ranks in the top 40% of its peers. ●

Fixed Income Compliance:

Bal Harbour General

Compliance Checklist

As of June 30, 2018

Total Fund Compliance:

Equity Compliance:

Page 10

Asset Allocation Compliance

AssetAllocation

$

CurrentAllocation (%)

TargetAllocation (%)

Differences(%)

Target Rebal.($000)

Domestic Equity 6,666,342 49.2 50.0 -0.8 105,010

International Equity 951,696 7.0 7.0 0.0 -3,707

Emerging Equity 401,599 3.0 3.0 0.0 4,683

Domestic Fixed Income 4,818,369 35.6 35.0 0.6 -78,423

Cash Equivalent 704,697 5.2 5.0 0.2 -27,562

Total Fund 13,542,703 100.0 100.0 0.0 -

Allocation Differences

0.0% 3.0% 6.0% 9.0% 10.0%-3.0 %-6.0 %-9.0 %-10.0 %

Cash Equivalent$704,697 (5.2%)

Domestic Fixed Income$4,818,369 (35.6%)

Emerging Equity$401,599 (3.0%)

International Equity$951,696 (7.0%)

Domestic Equity$6,666,342 (49.2%)

0.2%

0.6%

0.0%

0.0%

-0.8 %

Executive Summary

Policy Target In Policy

0.0% 15.0% 30.0% 45.0% 60.0% 75.0% 90.0% 105.0% 120.0%

Cash Equivalent$704,697.4 (5.2%)

Domestic Fixed Income$4,818,369.2 (35.6%)

Emerging Equity$401,598.5 (3.0%)

International Equity$951,696.1 (7.0%)

Domestic Equity$6,666,341.9 (49.2%)

Asset Allocation Compliance

Bal Harbour General NT Total Fund Composite

As of June 30, 2018

Page 11

Asset Allocation By Segment as ofMarch 31, 2018 : $13,457,973

Asset Allocation By Segment as ofJune 30, 2018 : $13,542,703

Allocation

Segments Market Value Allocation

Domestic Equity 6,740,989 50.1¢

International Equity 949,927 7.1¢

Emerging Equity 403,920 3.0¢

Domestic Fixed Income 4,677,002 34.8¢

Cash Equivalent 686,134 5.1¢

Allocation

Segments Market Value Allocation

Domestic Equity 6,666,342 49.2¢

International Equity 951,696 7.0¢

Emerging Equity 401,599 3.0¢

Domestic Fixed Income 4,818,369 35.6¢

Cash Equivalent 704,697 5.2¢

Asset Allocation Summary

NT Total Fund CompositeAs of June 30, 2018

NONE

Page 12

Asset Allocation By Manager as ofMarch 31, 2018 : $13,457,973

Asset Allocation By Manager as ofJune 30, 2018 : $13,542,703

Allocation

Market Value Allocation

NT Combined Equity 8,094,836 60.1¢

NT Fixed Income 4,677,002 34.8¢

R&D Cash 686,134 5.1¢

Allocation

Market Value Allocation

NT Combined Equity 8,019,637 59.2¢

NT Fixed Income 4,818,369 35.6¢

R&D Cash 704,697 5.2¢

Asset Allocation Summary

NT Total Fund CompositeAs of June 30, 2018

NONE

Page 13

Asset Allocation & Performance

Allocation

MarketValue

$%

Performance(%)

QTR FYTD 1 YR 3 YR 5 YR InceptionInception

Date

NT Total Fund Composite (Gross) 13,542,703 100.0 1.80 4.53 7.82 6.98 7.80 5.96 01/01/2002

Total Policy Index 1.88 4.71 8.04 7.08 8.09 5.94

All Public Plans-Total Fund Median 1.28 4.85 8.56 6.86 8.10 6.48

NT Total Fund Composite (Net) 13,542,703 100.0 1.76 4.42 7.66 6.79 7.62 5.68 01/01/2002

Total Policy Index 1.88 4.71 8.04 7.08 8.09 5.94

NT Combined Equity 8,019,637 59.2 3.08 8.41 13.53 10.60 11.72 6.96 01/01/2002

NT Combined Equity Index 3.20 8.54 13.72 10.63 12.07 6.90

IM Global Equity (SA+CF) Median 1.12 5.81 11.11 8.63 10.36 8.17

NT Fixed Income 4,818,369 35.6 -0.16 -1.29 -0.46 1.57 2.16 3.95 01/01/2002

NT Fixed Income Index -0.16 -1.23 -0.40 1.72 2.27 4.07

IM Global Fixed Income (SA+CF) Median -1.73 -0.52 1.70 3.47 3.24 6.83

R&D Cash 704,697 5.2


NT Total Fund Composite (Gross)

As of June 30, 2018

Page 14


Allocation

MarketValue

$%

Performance(%)

Oct-2016To

Sep-2017

Oct-2015To

Sep-2016

Oct-2014To

Sep-2015

Oct-2013To

Sep-2014

Oct-2012To

Sep-2013

Oct-2011To

Sep-2012

Oct-2010To

Sep-2011

Oct-2009To

Sep-2010

Oct-2008To

Sep-2009

Oct-2007To

Sep-2008

NT Total Fund Composite (Gross) 13,542,703 100.0 11.09 10.57 -0.41 8.78 11.92 17.52 0.09 9.30 1.46 -12.08

Total Policy Index 11.33 10.69 0.08 9.30 12.23 18.26 0.90 10.46 0.57 -12.53

All Public Plans-Total Fund Median 12.20 9.67 -0.49 10.19 12.50 17.96 0.30 9.88 1.69 -12.88

NT Total Fund Composite (Net) 13,542,703 100.0 10.86 10.39 -0.57 8.60 11.72 17.32 -0.26 8.96 1.38 -12.12

Total Policy Index 11.33 10.69 0.08 9.30 12.23 18.26 0.90 10.46 0.57 -12.53

NT Combined Equity 8,019,637 59.2 19.02 14.62 -2.65 12.41 21.67 26.55 -2.66 11.44 -6.33 -21.72

NT Combined Equity Index 19.28 14.59 -1.77 13.17 22.12 27.71 -2.07 11.75 -6.26 -21.98

IM Global Equity (SA+CF) Median 18.67 11.79 -3.33 11.32 21.32 21.85 -4.05 9.68 1.17 -25.48

NT Fixed Income 4,818,369 35.6 -0.10 5.01 2.90 3.93 -1.99 5.13 5.07 7.78 10.06 3.21

NT Fixed Income Index 0.07 5.19 2.94 3.96 -1.68 5.16 5.26 8.02 10.01 3.13

IM Global Fixed Income (SA+CF) Median 4.19 8.66 -2.53 4.91 0.45 9.19 2.81 9.68 14.43 0.64

R&D Cash 704,697 5.2


NT Total Fund Composite (Gross)

As of June 30, 2018

Page 15

Historical Rolling Performance

QTR 1 YR 3 YR 5 YR Inception

06/30/2018 1.80 7.82 6.98 7.80 5.96

03/31/2018 -0.80 8.58 6.18 7.44 5.94

12/31/2017 3.51 13.47 7.14 8.84 6.09

09/30/2017 3.15 11.09 6.95 8.29 5.96

06/30/2017 2.52 11.27 5.50 8.53 5.84

03/31/2017 3.66 11.11 5.72 7.59 5.77

12/31/2016 1.34 9.16 4.94 8.42 5.61

09/30/2016 3.31 10.57 6.20 9.52 5.62

06/30/2016 2.38 2.04 6.66 6.62 5.48

03/31/2016 1.84 -0.78 5.86 6.23 5.40

12/31/2015 2.65 -0.70 7.23 6.63 5.37

09/30/2015 -4.65 -0.41 6.63 7.36 5.27

06/30/2015 -0.46 3.41 9.86 9.94 5.74

03/31/2015 1.92 7.19 9.36 8.96 5.89

12/31/2014 2.95 6.63 11.39 9.36 5.85

09/30/2014 -0.99 8.78 12.68 9.37 5.72

06/30/2014 3.18 15.00 9.30 11.73 5.93

03/31/2014 1.39 11.55 8.35 12.89 5.78

12/31/2013 5.02 16.45 9.20 11.36 5.78

09/30/2013 4.67 11.92 9.60 7.86 5.47

06/30/2013 0.09 11.51 10.53 5.74 5.17

03/31/2013 5.84 9.37 8.71 5.34 5.28

12/31/2012 0.94 11.31 8.00 3.18 4.86

09/30/2012 4.28 17.52 8.73 2.78 4.89

06/30/2012 -1.83 1.83 10.73 2.88 4.59

03/31/2012 7.72 4.26 14.55 4.08 4.89

12/31/2011 6.57 0.45 9.73 2.77 4.24

09/30/2011 -9.64 0.09 3.54 2.26 3.67

06/30/2011 0.51 18.93 5.20 4.97 4.88

03/31/2011 3.78 12.66 4.39 4.51 4.96

12/31/2010 6.19 12.67 1.51 4.62 4.67

09/30/2010 7.37 9.30 -0.84 3.71 4.09

06/30/2010 -4.79 12.10 -1.64 3.00 3.34

03/31/2010 3.79 27.95 1.31 4.30 4.06

12/31/2009 3.01 16.76 0.42 3.08 3.71

09/30/2009 10.13 1.46 0.74 3.61 3.44

06/30/2009 8.67 -12.67 -1.50 1.24 2.23

03/31/2009 -5.29 -21.09 -4.72 -0.52 1.14

12/31/2008 -10.49 -20.48 -1.60 0.67 1.97

09/30/2008 -5.21 -12.08 2.66 4.59 3.73


NT Total Fund Composite

As of June 30, 2018

Returns for periods greater than one year are annualized.Returns are expressed as percentages.

Page 16


QTR 1 YR 3 YR 5 YR Inception

06/30/2018 1.88 8.04 7.08 8.09 5.94

03/31/2018 -0.80 8.72 6.25 7.73 5.91

12/31/2017 3.61 13.53 7.34 9.16 6.06

09/30/2017 3.17 11.33 7.24 8.63 5.92

06/30/2017 2.52 11.51 5.69 8.86 5.81

03/31/2017 3.59 11.21 6.00 7.96 5.73

12/31/2016 1.59 9.26 5.35 8.78 5.58

09/30/2016 3.35 10.69 6.59 9.95 5.57

06/30/2016 2.24 1.90 6.99 7.10 5.43

03/31/2016 1.78 -0.79 6.27 6.78 5.36

12/31/2015 2.93 -0.29 7.71 7.23 5.32

09/30/2015 -4.86 0.08 7.08 7.93 5.20

06/30/2015 -0.46 3.89 10.39 10.81 5.69

03/31/2015 2.30 7.97 9.96 9.67 5.84

12/31/2014 3.31 7.33 11.82 10.02 5.77

09/30/2014 -1.24 9.30 13.20 10.09 5.62

06/30/2014 3.44 15.69 10.01 12.65 5.84

03/31/2014 1.70 12.04 9.03 14.16 5.67

12/31/2013 5.20 16.74 9.83 12.22 5.64

09/30/2013 4.54 12.23 10.22 8.27 5.31

06/30/2013 0.18 11.92 11.59 6.03 5.02

03/31/2013 5.96 9.91 9.47 5.60 5.12

12/31/2012 1.14 11.58 8.75 3.40 4.68

09/30/2012 4.25 18.26 9.64 3.00 4.69

06/30/2012 -1.62 2.81 11.89 2.56 4.39

03/31/2012 7.57 5.24 16.34 3.62 4.66

12/31/2011 7.18 1.69 10.97 2.43 4.02

09/30/2011 -9.37 0.90 3.88 1.96 3.39

06/30/2011 0.71 20.77 5.21 4.80 4.55

03/31/2011 3.95 13.40 4.33 4.46 4.60

12/31/2010 6.35 13.36 1.36 4.04 4.28

09/30/2010 8.49 10.46 -0.95 3.04 3.67

06/30/2010 -5.44 12.82 -2.96 1.69 2.79

03/31/2010 3.90 31.95 0.04 3.23 3.58

12/31/2009 3.63 18.53 -0.73 2.13 3.20

09/30/2009 10.81 0.57 -0.39 2.36 2.83

06/30/2009 10.59 -14.53 -2.47 0.36 1.53

03/31/2009 -6.66 -24.11 -5.98 -1.72 0.18

12/31/2008 -12.07 -22.49 -3.19 0.06 1.18

09/30/2008 -5.83 -12.53 1.50 3.87 3.17


Total Policy Index

As of June 30, 2018

Returns for periods greater than one year are annualized.Returns are expressed as percentages.

Page 17

Historical Statistics 3 Years

ReturnStandardDeviation

SharpeRatio

UpMarket

Capture

UpQuarters

DownMarket

Capture

DownQuarters

Investment 6.98 4.49 1.40 98.09 10 96.33 2

Index 7.08 4.61 1.39 100.00 10 100.00 2

90 Day U.S. Treasury Bill 0.64 0.28 N/A 5.83 11 -6.59 1



SharpeRatio

UpMarket

Capture

UpQuarters

DownMarket

Capture

DownQuarters

Investment 7.80 4.36 1.66 96.04 16 93.79 4

Index 8.09 4.51 1.67 100.00 16 100.00 4


Risk and Return 3 Years

Investment Index

6.9

7.0

7.1

Ret

urn

(%)

4.4 4.5 4.6 4.7Risk (Standard Deviation %)


Investment Index

7.7

7.8

7.9

8.0

8.1

8.2

Ret

urn

(%)


3 Year Rolling Percentile Rank All Public Plans-Total Fund

0.0

25.0

50.0

75.0

100.0

Ret

urn

Per

cen

tile

Ran

k

9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Investment 20 0 (0%) 5 (25%) 12 (60%) 3 (15%)¾

Index 20 1 (5%) 10 (50%) 9 (45%) 0 (0%)¾

5 Year Rolling Percentile Rank All Public Plans-Total Fund

0.0

25.0

50.0

75.0

100.0

Ret

urn

Per

cen

tile

Ran

k

9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Investment 20 0 (0%) 0 (0%) 13 (65%) 7 (35%)¾

Index 20 0 (0%) 9 (45%) 11 (55%) 0 (0%)¾

Strategy Review

NT Total Fund Composite | Total Policy Index

As of June 30, 2018

Page 18

Plan Sponsor Peer Group Analysis vs. All Public Plans-Total Fund

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Ret

urn

4 QuartersEnding

Sep-2017

4 QuartersEnding

Sep-2016

4 QuartersEnding

Sep-2015

4 QuartersEnding

Sep-2014

4 QuartersEnding

Sep-2013

Investment 11.09 (75) 10.57 (21) -0.41 (48) 8.78 (81) 11.92 (61)��

Index 11.33 (70) 10.69 (18) 0.08 (37) 9.30 (69) 12.23 (56)��

Median 12.20 9.67 -0.49 10.19 12.50

Plan Sponsor Peer Group Analysis vs. All Public Plans-Total Fund

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

Retu

rn

QTR FYTD 1 YR 3 YR 5 YR

Investment 1.80 (30) 4.53 (59) 7.82 (68) 6.98 (46) 7.80 (61)��

Index 1.88 (25) 4.71 (57) 8.04 (64) 7.08 (44) 8.09 (51)��

Median 1.28 4.85 8.58 6.87 8.12

Comparative Performance

1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

1 QtrEnding

Dec-2016

Investment -0.80 (84) 3.51 (66) 3.15 (74) 2.52 (79) 3.66 (86) 1.34 (27)

Index -0.80 (84) 3.61 (60) 3.17 (72) 2.52 (79) 3.59 (87) 1.59 (20)

Median -0.30 3.74 3.45 2.97 4.40 0.85

Strategy Review

NT Total Fund Composite | Total Policy Index

As of June 30, 2018

Page 19

Risk / Reward Historical Statistics 3 Years Ending June 30, 2018

0.0

0.5

1.0

1.5

2.0

NT Total Fund Composite Total Policy Index

Alpha 0.09 0.00¢

Beta 0.97 1.00¢

Sharpe Ratio 1.40 1.39¢

Treynor Ratio 0.06 0.06¢


0.0

0.5

1.0

1.5

2.0


Alpha 0.00 0.00¢

Beta 0.96 1.00¢



Benchmark Relative Historical Statistics 3 Years Ending June 30, 2018

0.0

0.5

1.0

1.5

-0.5

-1.0


Actual Correlation 1.00 1.00¢

Information Ratio -0.37 N/A¢

R-Squared 1.00 1.00¢

Tracking Error 0.27 0.00¢


0.0

0.7

1.4

-0.7

-1.4






Portfolio Comparison

Total Fund

As of June 30, 2018

Benchmark: Total Policy Index

Page 20



SharpeRatio

UpMarket

Capture

UpQuarters

DownMarket

Capture

DownQuarters

Investment 10.60 7.60 1.30 98.97 10 96.82 2

Index 10.63 7.80 1.28 100.00 10 100.00 2




SharpeRatio

UpMarket

Capture

UpQuarters

DownMarket

Capture

DownQuarters

Investment 11.72 7.27 1.53 96.59 17 93.87 3

Index 12.07 7.45 1.54 100.00 17 100.00 3



Investment Index

10.5

10.6

10.7

Ret

urn

(%)

7.5 7.6 7.7 7.8 7.9Risk (Standard Deviation %)


Investment Index

11.6

11.7

11.8

11.9

12.0

12.1

12.2

Ret

urn

(%)


3 Year Rolling Percentile Rank IM Global Equity (SA+CF)

0.0

25.0

50.0

75.0

100.0

Ret

urn

Per

cen

tile

Ran

k

9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Investment 20 3 (15%) 17 (85%) 0 (0%) 0 (0%)¾

Index 20 8 (40%) 12 (60%) 0 (0%) 0 (0%)¾

5 Year Rolling Percentile Rank IM Global Equity (SA+CF)

0.0

25.0

50.0

75.0

100.0

Ret

urn

Per

cen

tile

Ran

k

9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Investment 20 4 (20%) 15 (75%) 1 (5%) 0 (0%)¾

Index 20 11 (55%) 9 (45%) 0 (0%) 0 (0%)¾

Strategy Review

NT Combined Equity | NT Combined Equity Index

As of June 30, 2018

Page 21

Peer Group Analysis - IM Global Equity (SA+CF)

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

Re

turn


Investment 3.08 (21) 8.41 (28) 13.53 (32) 10.60 (28) 11.72 (31)��

Index 3.20 (19) 8.54 (27) 13.72 (31) 10.63 (27) 12.07 (26)��

Median 1.12 5.81 11.11 8.63 10.36

Peer Group Analysis - IM Global Equity (SA+CF)

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

36.0

44.0

52.0

Re

turn

4 QuartersEnding

Sep-2017

4 QuartersEnding

Sep-2016

4 QuartersEnding

Sep-2015

4 QuartersEnding

Sep-2014

4 QuartersEnding

Sep-2013

Investment 19.02 (49) 14.62 (27) -2.65 (44) 12.41 (40) 21.67 (48)��

Index 19.28 (47) 14.59 (27) -1.77 (38) 13.17 (32) 22.12 (43)��

Median 18.67 11.79 -3.33 11.32 21.32


1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

1 QtrEnding

Dec-2016

Investment -0.51 (45) 5.71 (38) 4.72 (55) 3.31 (80) 5.62 (75) 4.16 (16)

Index -0.59 (46) 5.79 (37) 4.77 (54) 3.35 (80) 5.53 (76) 4.38 (14)

Median -0.83 5.29 4.93 4.81 6.82 0.74

Strategy Review

NT Combined Equity | NT Combined Equity Index

As of June 30, 2018

Page 22


0.0

0.5

1.0

1.5

2.0

NT Combined Equity NT Combined Equity Index

Alpha 0.23 0.00¢

Beta 0.97 1.00¢




0.0

0.6

1.2

1.8

2.4

-0.6


Alpha -0.03 0.00¢

Beta 0.97 1.00¢




0.0

0.4

0.8

1.2

-0.4

-0.8







0.0

0.6

1.2

1.8

-0.6

-1.2







NT Combined Equity

As of June 30, 2018

Benchmark: NT Combined Equity Index

Page 23



SharpeRatio

UpMarket

Capture

UpQuarters

DownMarket

Capture

DownQuarters

Investment 1.57 3.16 0.30 98.87 8 106.09 4

Index 1.72 3.08 0.35 100.00 8 100.00 4




SharpeRatio

UpMarket

Capture

UpQuarters

DownMarket

Capture

DownQuarters

Investment 2.16 2.90 0.60 98.86 14 104.67 6

Index 2.27 2.86 0.65 100.00 14 100.00 6



Investment Index

1.5

1.6

1.7

1.8

Ret

urn

(%)

3.0 3.1 3.2Risk (Standard Deviation %)


Investment Index

2.1

2.2

2.3

Ret

urn

(%)

2.8 2.9 3.0Risk (Standard Deviation %)

3 Year Rolling Percentile Rank IM Global Fixed Income (SA+CF)

0.0

25.0

50.0

75.0

100.0

Ret

urn

Per

cen

tile

Ran

k

9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Investment 20 0 (0%) 7 (35%) 10 (50%) 3 (15%)¾

Index 20 0 (0%) 8 (40%) 10 (50%) 2 (10%)¾

5 Year Rolling Percentile Rank IM Global Fixed Income (SA+CF)

0.0

25.0

50.0

75.0

100.0

Ret

urn

Per

cen

tile

Ran

k

9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17 9/17 3/18 6/18

Total Period5-25

Count25-Median

CountMedian-75

Count75-95Count

Investment 20 0 (0%) 3 (15%) 13 (65%) 4 (20%)¾

Index 20 0 (0%) 4 (20%) 12 (60%) 4 (20%)¾

Strategy Review

NT Fixed Income | NT Fixed Income Index

As of June 30, 2018

Page 24

Peer Group Analysis - IM Global Fixed Income (SA+CF)

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Re

turn


Investment -0.16 (25) -1.29 (71) -0.46 (89) 1.57 (94) 2.16 (74)��

Index -0.16 (25) -1.23 (71) -0.40 (87) 1.72 (93) 2.27 (71)��

Median -1.73 -0.52 1.70 3.47 3.24

Peer Group Analysis - IM Global Fixed Income (SA+CF)

-20.0

-16.0

-12.0

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

Re

turn

4 QuartersEnding

Sep-2017

4 QuartersEnding

Sep-2016

4 QuartersEnding

Sep-2015

4 QuartersEnding

Sep-2014

4 QuartersEnding

Sep-2013

Investment -0.10 (84) 5.01 (81) 2.90 (8) 3.93 (61) -1.99 (73)��

Index 0.07 (82) 5.19 (81) 2.94 (8) 3.96 (61) -1.68 (69)��

Median 4.19 8.66 -2.53 4.91 0.45


1 QtrEnding

Mar-2018

1 QtrEnding

Dec-2017

1 QtrEnding

Sep-2017

1 QtrEnding

Jun-2017

1 QtrEnding

Mar-2017

1 QtrEnding

Dec-2016

Investment -1.50 (96) 0.37 (80) 0.84 (92) 1.47 (74) 0.82 (90) -3.16 (64)

Index -1.46 (95) 0.39 (79) 0.85 (92) 1.45 (74) 0.82 (90) -2.98 (64)

Median 0.33 0.89 1.86 2.20 2.11 -1.36

Strategy Review

NT Fixed Income | NT Fixed Income Index

As of June 30, 2018

Page 25


0.0

0.5

1.0

1.5

-0.5

NT Fixed Income NT Fixed Income Index

Alpha -0.19 0.00¢

Beta 1.03 1.00¢




0.0

0.5

1.0

1.5

-0.5


Alpha -0.14 0.00¢

Beta 1.01 1.00¢




0.0

0.8

1.6

-0.8

-1.6

-2.4







0.0

0.7

1.4

-0.7

-1.4







NT Fixed Income

As of June 30, 2018

Benchmark: NT Fixed Income Index

Page 26

Total Policy Historical Hybrid Composition

Allocation Mandate Weight (%)

Jan-2002

Bloomberg Barclays Intermediate US Govt/Credit Idx 50.00

S&P 500 Index 50.00

Apr-2006


S&P 500 Index 45.00

S&P MidCap 400 Index 5.00

Russell 2000 Index 5.00

MSCI EAFE Index 5.00

Jan-2008


S&P 500 Index 53.70




FTSE 3 Month T-Bill 2.90

Apr-2010

Blmbg. Barc. U.S. Aggregate Index 35.00

S&P 500 Index 30.00




FTSE 3 Month T-Bill 5.00

MSCI Emerging Markets (Net) Index 3.00

Combined Equity Historical Hybrid Composition


Jan-2002

S&P 500 Index 100.00

Apr-2006

S&P 500 Index 75.00




Jan-2008

S&P 500 Index 88.50




Apr-2010

S&P 500 Index 50.00




MSCI Emerging Markets (Net) Index 5.00

Fixed Income Historical Hybrid Composition


Jan-2002


Apr-2010

Blmbg. Barc. U.S. Aggregate Index 100.00

Benchmark History

Investment Policy Benchmarks

As of June 30, 2018

Page 27

Report Statistics Definitions and Descriptions

Active Return - Arithmetic difference between the manager’s performance and the designated benchmark return over a specified time period. Alpha - A measure of the difference between a portfolio's actual performance and its expected return based on its level of risk as determined by beta. It determines the portfolio's

non-systemic return, or its historical performance not explained by movements of the market. Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of the portfolio's systematic risk. Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. Higher consistency indicates the manager has contributed more to the

product’s performance. Distributed to Paid In (DPI) - The ratio of money distributed to Limited Partners by the fund, relative to contributions. It is calculated by dividing cumulative distributions by paid in capital. This multiple

shows the investor how much money they got back. It is a good measure for evaluating a fund later in its life because there are more distributions to measure against. Down Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of negative returns. A lower value indicates better product performance Downside Risk - A measure similar to standard deviation that utilizes only the negative movements of the return series. It is calculated by taking the standard deviation of the negative

quarterly set of returns. A higher factor is indicative of a riskier product. Excess Return - Arithmetic difference between the manager’s performance and the risk-free return over a specified time period. Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Information Ratio - This calculates the value-added contribution of the manager and is derived by dividing the active rate of return of the portfolio by the tracking error. The higher the

Information Ratio, the more the manager has added value to the portfolio. Public Market Equivalent (PME) - Designs a set of analyses used in the Private Equity Industry to evaluate the performance of a Private Equity Fund against a public benchmark or index. R-Squared - The percentage of a portfolio's performance that can be explained by the behavior of the appropriate benchmark. A high R-Squared means the portfolio's performance has

historically moved in the same direction as the appropriate benchmark. Return - Compounded rate of return for the period. Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is an absolute rate of return per unit of risk. A

higher value demonstrates better historical risk-adjusted performance. Standard Deviation - A statistical measure of the range of a portfolio's performance. It represents the variability of returns around the average return over a specified time period. Total Value to Paid In (TVPI) - The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund

to date. It is a good measure of performance before the end of a fund’s life Tracking Error - This is a measure of the standard deviation of a portfolio's returns in relation to the performance of its designated market benchmark. Treynor Ratio - Similar to Sharpe ratio but utilizes beta rather than excess risk as determined by standard deviation. It is calculated by taking the excess rate of return above the risk free

rate divided by beta to derive the absolute rate of return per unit of risk. A higher value indicates a product has achieved better historical risk-adjusted performance. Up Market Capture - The ratio of average portfolio performance over the designated benchmark during periods of positive returns. A higher value indicates better product performance.

Page 28

Disclosures

AndCo compiled this report for the sole use of the client for which it was prepared. AndCo is responsible for evaluating the performance results of the Total Fund along with the investment advisors by comparing their performance with indices and other related peer universe data that is deemed appropriate. AndCo uses the results from this evaluation to make observations and recommendations to the client. AndCo uses time-weighted calculations which are founded on standards recommended by the CFA Institute. The calculations and values shown are based on information that is received from custodians. AndCo analyzes transactions as indicated on the custodian statements and reviews the custodial market values of the portfolio. As a result, this provides AndCo with a reasonable basis that the investment information presented is free from material misstatement. This methodology of evaluating and measuring performance provides AndCo with a practical foundation for our observations and recommendations. Nothing came to our attention that would cause AndCo to believe that the information presented is significantly misstated. This performance report is based on data obtained by the client’s custodian(s), investment fund administrator, or other sources believed to be reliable. While these sources are believed to be reliable, the data providers are responsible for the accuracy and completeness of their statements. Clients are encouraged to compare the records of their custodian(s) to ensure this report fairly and accurately reflects their various asset positions. The strategies listed may not be suitable for all investors. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. Past performance is not an indication of future performance. Any information contained in this report is for informational purposes only and should not be construed to be an offer to buy or sell any securities, investment consulting, or investment management services. Additional information included in this document may contain data provided by from index databases, public economic sources and the managers themselves. This document may contain data provided by Bloomberg Barclays. Bloomberg Barclays Index data provided by way of Barclays Live. This document may contain data provided by Standard and Poor’s. Nothing contained within any document, advertisement or presentation from S&P Indices constitutes an offer of services in jurisdictions where S&P Indices does not have the necessary licenses. All information provided by S&P Indices is impersonal and is not tailored to the needs of any person, entity or group of persons. Any returns or performance provided within any document is provided for illustrative purposes only and does not demonstrate actual performance. Past performance is not a guarantee of future investment results. This document may contain data provided by MSCI, Inc. Copyright MSCI, 2017. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an “as is” basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages. This document may contain data provided by Russell Investment Group. Russell Investment Group is the source owner of the data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a user presentation of the data. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in presentation thereof. This document may contain data provided by Morningstar. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is not guarantee of future results.

Page 29

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