Anexo

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD AGENDA FEBRUARY 26, 2014 - 9:00 A.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE This meeting was rescheduled from February 13, 2014 due to inclement weather. Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Approval of Minutes - OPEB Board Meeting of November 14, 2013 2. Quarterly Performance Review (Quarter Ending December 31, 2013) (Milliman, Inc.) (Staff Recommends Acceptance of the Report) 3. Adjournment by 9:25 a.m. TO ASSURE THAT THERE WILL BE A QUORUM, PLEASE RSVP BY CONTACTING THE CITY CLERK’S OFFICE BY EMAIL AT CITYCLERK@DOVER.DE.US OR BY CALLING 736-7008 AS SOON AS POSSIBLE. /js S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Misc-Agendas\OPEB\2014\02-26-2014 OPEB BOARD.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD The Other Post-Employment Benefits (OPEB) Board meeting was held on November 14, 2013 at 9:04 a.m with Chairwoman Mitchell presiding. Members present were Mr. Koenig and Mrs. Hawkins. Mr. Hare and Mrs. Williams were absent. AGENDA ADDITIONS/DELETIONS Mr. Koenig moved for approval of the agenda as presented, seconded by Mrs. Hawkins and unanimously carried. Approval of Minutes - OPEB Board Meeting of August 8, 2013 Mrs. Hawkins moved for approval of the minutes of the OPEB Board meeting of August 8, 2013, seconded by Mr. Koenig and unanimously carried. Quarterly Performance Review (Quarter Ending September 30, 2013) (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, Milliman, Inc., reviewed the Quarterly Investment Monitor Summary Report for the Quarter Ending September 30, 2013. Referring to Page 3, Market Indices, he noted that, in general, the returns for equity categories were positive for the year to date. He stated that bonds, particularly long-term bonds, were affected early in the year by rising interest rates. Mr. Marzinsky indicated that interest rates had risen by approximately 100 basis points, which would affect plan liabilities in a positive way. He noted improvements in the global economy, including a lessening of unemployment in the U.S., job growth, an expansion in the Gross Domestic Product (GDP), and an increase in personal spending. Indications were that interest rates would be kept low. Mr. Marzinsky expressed cautious optimism regarding the markets, noting that the Dow and Standard and Poor markets were at record highs. Referring to the Investment Committee Meetings Notes - 11/14/2013, Mr. Marzinsky stated that the assets in the OPEB plan as of September 30, 2013 were approximately $14M, an increase from approximately $13.4 million at the beginning of the quarter. He noted that on September 30, 2012, Plan funds totaled approximately $11M; therefore, there were improvements in assets due to contributions and investment returns over the past year. At the end of the quarter, the plan asset allocation was in line with the target ranges set during the previous meeting. He stated that Milliman, Inc. would make recommendations for change as they see the economy affecting investments in general. Mr. Marzinsky noted that OPEB investments had generally had positive returns. He noted that two (2) of the investments carried forward from the previous investment manager, American Funds New Perspective and Harding Loevner Equity funds, were global funds that invest primarily in Europe and Asia, but also have some allocation to the United States. Due to the global nature of these funds, he indicated that there may be some overlap with other investments in the plan. Mr. Marzinsky noted that recommendations for potential replacement(s) would be made to the Board at the next meeting. The returns on these investments had been generally good; however, it was felt that they did not fit into the portfolio any longer.

OPEB MEETING OF NOVEMBER 14, 2013 PAGE 2 Referring to the Investment Policy Review - Active Management on Page 10 of the Quarterly Investment Monitor Report, Mr. Marzinsky stated that the Return Rank for most of the funds was in the top half or better. He noted that many investments were outperforming their indexes and that the Relative Standard Deviation column reflected figures that were lower than 1, for the most part, indicating that these funds were less volatile than their market indexes. In reviewing the Investment Option Return Summary on Page 12, Mr. Marzinsky stated that the majority of the individual funds were exceeding their market indexes. He noted some underperformance in a couple of the investments; however, the plan had positive returns over all periods of time. He stated that the plan was close to its target return of 5% - 7% for the one (1) year period and had positive performance and appreciation in assets over the last year. In summary, Mr. Marzinsky stated that plan assets had shown improvement in value from the prior quarter and the prior fiscal year end. Returns for the plan had been positive. The individual investments were performing well compared to their peers and no changes were recommended at this time. He indicated that Milliman, Inc. would work with Wells Fargo to determine the funds that are available on their platform to make recommendations for replacement of the global equity funds mentioned previously. Mr. Marazinsky noted that Milliman was in the process of redrafting the Plan’s investment policy statement and would provide this to the Board early next year, prior to the Board’s meeting in August when the investment policy and asset allocation are scheduled to be brought forward for approval. Mrs. Hawkins moved to accept the report, seconded by Mr. Koenig and unanimously carried. Mrs. Hawkins moved for adjournment, seconded by Mr. Koenig and unanimously carried. Meeting adjourned at 9:13 a.m. Donna S. Mitchell Chairwoman DM/JS/dd/tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Misc-Minutes\OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD\2013\11-14-2013 OPEB.wpd

250 Washington Ave Ext Albany, NY 12203 USA Tel +1 518 514 7157 Fax +1 518 514 7200 MEMO milliman.com To: City of Dover, Delaware OPEB Plan – Board From: Jeff Marzinsky & Matt Albano/Milliman Re: Board Meeting Notes – 2/12/2014 Enclosures: Milliman Quarterly Investment Monitor Report (QIM) and Competitor Analysis Report 1. OPEB Plan Investment Review through 12/31/2013: a. As of 12/31/2013 the plan had assets of $16.4 million, up from $14.1 million at 9/30/2013. The plan had $12.1 million in assets at 12/31/2012. During the quarter, the plan had contributions of approximately $1.66 million, no withdrawals, and fees of $1.3 thousand. b. Total performance of the plan portfolio was 4.40% net (4.47% gross) for the quarter, ahead of the Plan’s benchmark index performance of 3.71%. City of Dover OPEB Trust Quarterly Return Summary OPEB-NET OPEB-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 1/31/2013 $ 12,085,938.70 $ - $ - $ 1,250.00 $ 207,197.42 $ 12,291,886.12 1.71% 1.74% 2/28/2013 $ 12,291,886.12 $ 1,200,000.00 $ - $ - $ 56,783.27 $ 13,548,669.39 0.45% 0.48% 3/31/2013 $ 13,548,669.39 $ - $ - $ - $ 166,549.32 $ 13,715,218.71 1.23% 1.26% 4/30/2013 $ 13,715,218.71 $ - $ - $ 1,250.00 $ 307,655.52 $ 14,021,624.23 2.24% 2.27% 5/31/2013 $ 14,021,624.23 $ - $ - $ - $ (217,179.06) $ 13,804,445.17 -1.55% -1.52% 6/30/2013 $ 13,804,445.17 $ - $ - $ - $ (401,977.49) $ 13,402,467.68 -2.91% -2.88% 7/31/2013 $ 13,402,467.68 $ - $ - $ 1,250.00 $ 316,012.14 $ 13,717,229.82 2.36% 2.38% 8/31/2013 $ 13,717,229.82 $ - $ - $ - $ (320,314.30) $ 13,396,915.52 -2.34% -2.31% 9/30/2013 $ 13,396,915.52 $ 243,925.00 $ - $ - $ 492,846.98 $ 14,133,687.50 3.61% 3.64% 10/31/2013 $ 14,133,687.50 $ 831,375.00 $ - $ 1,250.00 $ 418,671.21 $ 15,382,483.71 2.89% 2.91% 11/30/2013 $ 15,382,483.71 $ - $ - $ - $ 83,574.03 $ 15,466,057.74 0.54% 0.57% 12/31/2013 $ 15,466,057.74 $ 831,375.00 $ - $ - $ 143,868.07 $ 16,441,300.81 0.92% 0.94% $ 1,662,750.00 $ - $ 1,250.00 $ 646,113.31 Quarterly Return 4.40% 4.47% $ 3,106,675.00 $ - $ 5,000.00 $ 1,253,687.11 One Year Return 9.30% 9.65% c. As of 12/31/13, the Plan’s asset allocation was in line with the allocation targets, as the plan was rebalanced on its quarterly schedule prior to quarter end. Fund Target Asset Category Description Category Investment Name Allocation Asset Allocation Range Money Market CA WELLS FARGO ADVANTAGE CASH INVESTMENT FUND 2.00% 0-10%; target 10% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 8.00% 0-10%; target 10% Cash + STB Inflation Protected Bonds TIPS Vanguard Inflation Prot Sec 2.00% 0-7%; target of 2% TIPS Intermediate Term Bonds INTB PIMCO Total Return 5.00% 5-15%; target 10% INTB Intermediate Term Bonds INTB Vanguard Total Bond Mkt Index Signal 5.00% 5-15%; target 10% INTB Long Term Bonds LTB PIMCO Long Duration 5.00% 5-15%; target 10% LTB Long Term Bonds LTB Vanguard Long Duration 5.00% 5-15%; target 10% LTB High Yield Bond HYB Ivy High Income I 8.00% 3-13%; target 8% HYB Large Cap Value LCV American Funds Washington Mutual 11.00% 6-16%; target 11% LCV Large Cap Blend LCB Vanguard 500 Index 0.00% REMOVED Large Cap Growth LCG Vanguard Growth Index 10.00% 5-15%; target 10% LCG Mid Cap MCV Vanguard Mid Cap Value Index 5.00% 0-10%; target 5% MC Small Cap SCV Target Small Cap Value 8.00% 0-13%; target 8% SC Real Estatement Investment REIT Vanguard REIT Index 6.00% 0-10%; target 6% REIT Foreign Equity GLB American Funds New Perspective 5.00% 5-15%; target 10% GLB Foreign Equity GLB Harding Loevner Global Equity 5.00% 5-15%; target 10% GLB Emerging Markets EMG Vanguard Emerging Mkts 10.00% 5-15%; target 10% Emg Mkts Offices in Principal Cities Worldwide

Meeting Notes Page 2 2. Comments on specific funds: a. American Funds New Perspective and Harding Loevner Global Equity i. After a due diligence review on performance and asset allocation, we have found that both funds have world allocation mandates that allow for investments outside of the US and also in US companies. The performance of the American Funds New Perspective has ranked in the top ½ or better of its peers over all time periods consistently. While the Harding Loevner Global fund ranked at or below median. Looking at risk adjusted measures, Alpha and Sharpe, the American Funds New Perspective, again does better. ii. With this in mind, the Board should consider retaining the American Funds New Perspective fund, as a global allocation equity option and consider for replacement the Harding Loevner Global Equity fund. iii. Due diligence reports have been prepared that detail optional non-US equity investments for consideration. The analysis in this report was prepared utilizing data from third parties and other sources including but not limited to internal computer software and databases, including among others mpiStylus Pro©,, software designed by Markov Processes International. Reasonable care has been taken to assure the accuracy of the data contained herein, and comments are objectively stated and are based on facts gathered in good faith. These reports do not constitute investment advice with respect to the sale or disposition of individual securities. Milliman disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. This Milliman work product was prepared solely for the internal business use of our clients. Milliman's work may not be provided to third parties without Milliman's prior written consent. Milliman does not intend to benefit any third party recipient of its work product, even if Milliman consents to the release of its work product to such third party. Past performance is no guarantee of future results. Unless explicitly stated in your Service Agreement, there should be no reliance on Milliman services to provide analysis or reporting on a daily basis, the changes to manager rankings, ratings or opinions thereon. Unless explicitly stated in your Service Agreement, Milliman services are not intended to monitor investment manager compliance with individual security selection criteria, limits on security selection, and/or prohibitions to the holding of certain securities or security types. Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request. Offices in Principal Cities Worldwide

Quarterly Investment Monitor Summary Report for the Quarter Ending December 31, 2013 Prepared for City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45

Quarterly Investment Monitor Contents Section A: Market Commentary Section B: Performance Summary Section C: Core Fund Review Section D: Glossary City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 2

Quarterly Investment Monitor Market Indices - 4th Quarter 2013 Index 3 1 3 5 Months Year Years Years BofAML US Treasury Bill 3 Mon 0.02 0.07 0.10 0.12 Barclays US Govt 1-3 Yr TR USD 0.07 0.37 0.81 1.25 Barclays US Govt/Credit Interm TR USD -0.02 -0.86 2.91 3.96 Barclays US Government Long TR USD -2.97 -12.48 5.47 2.42 Barclays US Long Credit TR USD 1.54 -6.62 7.23 9.77 Barclays US Corporate High Yield TR USD 3.58 7.44 9.32 18.93 DJ Industrial Average TR USD 10.22 29.65 15.71 16.73 S&P 500 TR 10.51 32.39 16.18 17.94 NASDAQ 100 TR USD 12.03 36.92 18.87 25.56 NASDAQ Composite TR USD 11.10 40.12 17.74 22.86 Russell 1000 Value TR USD 10.01 32.53 16.06 16.67 Russell 1000 TR USD 10.23 33.11 16.30 18.59 Russell 1000 Growth TR USD 10.44 33.48 16.45 20.39 Russell 2000 Value TR USD 9.30 34.52 14.49 17.64 Russell 2000 TR USD 8.72 38.82 15.67 20.08 Russell 2000 Growth TR USD 8.17 43.30 16.82 22.58 FTSE NAREIT All REITs TR 0.31 3.21 9.98 16.68 MSCI EAFE NR USD 5.71 22.78 8.17 12.44 MSCI EAFE Small Cap NR USD 5.91 29.30 9.26 18.50 MSCI EM NR USD 1.83 -2.60 -2.06 14.79 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 3

Quarterly Investment Monitor Broad Market Commentary - 4th Quarter 2013 Broad Markets - Quarter Broad Markets - Five Years Oct-13 - Dec-13 Dec-08 - Dec-13 12 280 260 10 240 8 220 Total Return, % Growth of $100 200 6 180 4 160 2 140 120 0 100 -2 80 Oct-13 - Dec-13 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Total Total Barclays US Govt/Credit Interm TR USD S&P 500 TR Barclays US Govt/Credit Interm TR USD S&P 500 TR NASDAQ Composite TR USD MSCI EAFE NR USD NASDAQ Composite TR USD MSCI EAFE NR USD Market Commentary The U.S. stock market rose on improving U.S. economic data, steady growth in corporate earnings, and the Federal Reserve's decision to modestly reduce (“taper”) its securities purchases from $85 billion per month to $75 billion. Developed international equity markets posted solid returns on central bank stimulus and a steady recovery in economic growth, while emerging markets struggled in the second half of the quarter as economic data disappointed. In addition to tapering its securities purchases, the Fed confirmed its commitment to keep short-term interest rates “exceptionally low” until either the unemployment rate falls to about 6.5% or the inflation rate exceeds 2.5% a year. As the quarter ended, mutual fund investors decreased their holdings in bonds and increased their holdings in stocks. For the third consecutive th quarter, bond funds had net outflows ($58.2 billion in the 4 Quarter), while stock funds had net inflows of $52.7 billion. Total money market mutual fund assets increased by $24.8 billion to $2.719 trillion. The unemployment rate fell from 7.2% to 6.7%, as total employment increased by 515,000 jobs. The price of oil decreased from $102 per barrel to $98 during the quarter, a decrease of 3.9%. For the three months ending December 31, 2013, annualized seasonally adjusted CPI – U was 1.1%. Rising prices for rental housing drove the increase. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 4

Quarterly Investment Monitor US Fixed Income Market Commentary - 4th Quarter 2013 US Fixed Income - Quarter US Fixed Income - Five Years Oct-13 - Dec-13 Dec-08 - Dec-13 4 240 220 3 200 2 Growth of $100 Total Return, % 180 1 160 0 140 -1 120 100 -2 80 -3 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Oct-13 - Dec-13 Total Total BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD US Bond Market The broad fixed income market fell 0.14% in the 4th quarter, as the negative impact from a 0.14% rise in interest rates more than offset the coupon return of 0.79%. The short end of the yield curve remained unchanged as the Fed maintained its near-zero interest rate policy. Interest rates moved decidedly higher for 5- to 30-year Treasury bonds. High-yield bonds were the best performing sector this quarter, up 3.58%, as investors favored bonds with higher yields. Long-term corporate bonds were up 1.10%, as tightening spreads slightly offset the negative impact from rising yields on the long end of the curve. Long-term government bonds were the worst performing sector this quarter, down 3.23%, as investors moved out of safe-haven assets. The 3-month T-Bill returned 0.02% in the fourth quarter, the same return as in the third quarter. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 5

Quarterly Investment Monitor US Equity Market Commentary - 4th Quarter 2013 US Equity - Quarter US Equity - Five Years Oct-13 - Dec-13 Dec-08 - Dec-13 11 300 10 275 9 250 8 225 Total Return, % Growth of $100 7 200 6 175 5 150 4 3 125 2 100 1 75 0 50 Oct-13 - Dec-13 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Total Total Russell 1000 Value TR USD Russell 1000 TR USD Russell 1000 Value TR USD Russell 1000 TR USD Russell 1000 Growth TR USD Russell 2000 Value TR USD Russell 1000 Growth TR USD Russell 2000 Value TR USD Russell 2000 TR USD Russell 2000 Growth TR USD Russell 2000 TR USD Russell 2000 Growth TR USD US Stock Market Most major domestic equity indices posted a gain for the quarter. The large-cap Russell 1000 Growth Index had the best return, up 10.44%. In terms of capitalization, large-cap stocks outperformed small-cap stocks. In comparing styles, growth outperformed value in the large-cap area of the market, while value beat growth in the small-cap area. REITs fell 1.09%, as higher interest rates reduced demand for dividend-paying stocks. The worst performing sectors were health care and self-storage. Industrials were the best performing sector, up 13.34%, on optimism about U.S. economic growth. Utilities were the worst performing sector, up 2.88%, as investors generally moved out of lower-risk assets. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 6

Quarterly Investment Monitor International Market Commentary - 4th Quarter 2013 International - Quarter Oct-13 - Dec-13 6 International - Five Years 5 Dec-08 - Dec-13 Total Return, % 4 240 3 220 2 1 200 0 180 Growth of $100 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD 160 MSCI EM NR USD Regional Performance - Quarter 140 Oct-13 - Dec-13 9 8 120 7 6 100 Total Return, % 5 4 3 80 2 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 1 0 -1 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD -2 MSCI EM NR USD -3 MSCI Australia NR USD MSCI Europe Ex UK NR USD MSCI UK NR USD MSCI Pacific Ex Japan NR USD MSCI Japan NR USD MSCI EM Latin America NR USD International Markets The dollar was down against the euro and pound, but up strongly against the yen. For the quarter, the EAFE Index was up 5.71%, and Emerging Markets were up 1.83%. Local currency returns for the EAFE Index and Emerging Markets were 6.36% and 2.96%, respectively. Among the major international regions, Indian stocks had the highest return, up 12.50%, as the new central bank chief raised investor confidence with measures to control inflation and support growth. Stocks in Brazil had the lowest return, down 5.69%, as a result of weak economic growth, lower commodity prices, and deteriorating fiscal conditions. Small-cap stocks, up 5.9%, outperformed large-cap stocks. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 7

Quarterly Investment Monitor Data as of 12/31/2013 Performance Summary City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 8

Quarterly Investment Monitor Data as of 12/31/2013 Asset Allocation Balances As of Percent As of Balances As of Percent As of Notes 12/30/2013 12/30/2013 09/30/2013 09/30/2013 Wells Fargo Advantage Cash Inv MMkt I $325,952 1.98% $285,812 2.02% WFIXX Vanguard Short-Term Bond Index Signal $1,301,646 7.91% $1,145,247 8.10% VBSSX Vanguard Inflation-Protected Secs I $324,135 1.97% $287,904 2.04% VIPIX PIMCO Total Return Instl $809,819 4.92% $718,526 5.08% PTTRX Vanguard Total Bond Market Index Signal $813,573 4.95% $719,452 5.09% VBTSX PIMCO Long Duration Total Return Instl $810,615 4.93% $728,053 5.15% PLRIX Vanguard Long-Term Bond Index I $813,061 4.94% $732,160 5.18% VBLLX Ivy High Income I $1,311,259 7.97% $1,140,388 8.06% IVHIX American Funds Washington Mutual R6 $1,826,880 11.11% $1,534,507 10.85% RWMGX Vanguard Growth Index I $1,665,536 10.13% $1,404,159 9.93% VIGIX Vanguard Mid Cap Index Adm $831,643 5.06% $701,022 4.96% VIMAX Target Small Capitalization Value T $1,330,019 8.09% $1,141,951 8.08% TASVX American Funds New Perspective R6 $835,013 5.08% $701,799 4.96% RNPGX Harding Loevner Global Equity Inst $831,896 5.06% $702,802 4.97% HLMVX Vanguard Emerging Mkts Stock Idx I $1,641,279 9.98% $1,365,872 9.66% VEMIX Vanguard REIT Index I $974,849 5.93% $830,621 5.87% VGSNX Plan Total $16,447,176 $14,140,274 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 9

Quarterly Investment Monitor Data as of 12/31/2013 Investment Policy Review - Active Management Return Return Excess Excess Relative Relative Alpha Sharpe Alpha Sharpe Fund Rank Rank Return Return StdDev StdDev Rank Rank Rank Rank Name 3Y 5Y 3Y 5Y 3Y 5Y 3Y 3Y 5Y 5Y Vanguard Inflation-Protected Secs I 13 29 -0.17 -0.17 1.03 1.01 44 33 44 37 PIMCO Total Return Instl 38 37 1.17 2.95 1.82 1.58 62 77 45 54 PIMCO Long Duration Total Return Instl 55 50 -0.57 0.70 0.93 0.95 91 73 63 75 Ivy High Income I 1 16 1.95 -0.46 0.77 0.72 1 2 1 2 American Funds Washington Mutual R6 13 42 1.42 0.19 0.77 0.81 4 3 11 8 Target Small Capitalization Value T 38 64 -2.17 -0.81 0.91 0.85 21 18 39 30 American Funds New Perspective R6 25 20 2.90 2.44 0.95 0.94 26 23 25 21 Harding Loevner Global Equity Inst 70 41 -0.70 1.07 0.99 0.95 68 69 38 33 Definitions Return Rank - Fund's category percentile return rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Relative StdDev - Fund's standard deviation relative to its benchmark, a value less than 1 implies the fund's standard deviation is lower than its benchmark. Alpha Rank - Fund's category percentile Alpha rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Sharpe Rank - Fund's category percentile Sharpe Ratio rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 10

Quarterly Investment Monitor Data as of 12/31/2013 Investment Policy Review - Passive Management Excess Excess Tracking Tracking Fund Beta Beta Expense Return Return Error Error Name 3Y 5Y Ratio 3Y 5Y 3Y 5Y Vanguard Short-Term Bond Index Signal 0.59 0.71 2.07 0.70 1.68 0.76 0.10 Vanguard Total Bond Market Index Signal -0.19 NA 1.01 0.22 NA NA 0.10 Vanguard Long-Term Bond Index I -0.20 -0.07 1.02 0.81 1.02 0.82 0.07 Vanguard Growth Index I 1.30 1.20 0.97 0.80 1.00 0.98 0.08 Vanguard Mid Cap Index Adm -0.33 0.31 1.03 0.83 1.01 1.10 0.10 Vanguard Emerging Mkts Stock Idx I 0.16 -0.73 1.01 3.44 1.03 3.37 0.12 Vanguard REIT Index I 1.21 1.70 1.00 0.21 0.99 0.38 0.08 Definitions Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Beta - Fund's Beta or sensitivity to movements compared to its benchmark, a value of 1 implies its moving in sync with its benchmark. Tracking Error - Fund's Tracking Error versus its benchmark, a value of 0 implies the Fund's ups and downs are the same size as its benchmark. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 11

Quarterly Investment Monitor Data as of 12/31/2013 Investment Option Return Summary Asset Fund 3 1 3 5 10 Mstar Expense YTD Ticker Class Name Months Year Years Years Years Rating Ratio Taxable Money Market Wells Fargo Advantage Cash Inv MMkt I 0.00 0.03 0.03 0.06 0.17 1.80 WFIXX NA 0.20 BofA ML 3-month T-bill total return Index 0.02 0.07 0.07 0.10 0.12 1.68 N/A NA NA Short-term Bond Vanguard Short-Term Bond Index Signal 0.13 0.17 0.17 1.76 2.73 3.34 VBSSX 2.00 0.10 Barclays US Govt/Credit 1-3 Yr TR USD 0.18 0.64 0.64 1.17 2.02 2.91 N/A NA NA Inflation-Protected Bond Vanguard Inflation-Protected Secs I (2.24) (8.83) (8.83) 3.38 5.46 4.71 VIPIX 4.00 0.07 Barclays US Treasury US TIPS TR USD (2.00) (8.61) (8.61) 3.55 5.63 4.85 N/A NA NA Intermediate-term Bond PIMCO Total Return Instl (0.03) (1.92) (1.92) 4.08 6.91 6.03 PTTRX 4.00 0.46 BC Intermediate Government/Credit (0.02) (0.86) (0.86) 2.91 3.96 4.09 N/A NA NA Intermediate-term Bond Vanguard Total Bond Market Index Signal (0.19) (2.15) (2.15) 3.15 4.39 4.50 VBTSX 2.00 0.10 Barclays US Agg Float Adj TR USD (0.07) (1.97) (1.97) 3.34 NA NA N/A NA NA Long-term Bond PIMCO Long Duration Total Return Instl (0.21) (8.56) (8.56) 6.14 7.11 NA PLRIX 3.00 0.50 Long-term Bond Vanguard Long-Term Bond Index I (0.45) (9.01) (9.01) 6.51 6.34 6.35 VBLLX 3.00 0.07 BC Long Government/Credit (0.10) (8.83) (8.83) 6.70 6.40 6.36 N/A NA NA High Yield Bond Ivy High Income I 3.37 10.46 10.46 11.26 18.47 8.75 IVHIX 5.00 0.70 BC High Yield Corporate Bond 3.58 7.44 7.44 9.32 18.93 8.62 N/A NA NA Large Value American Funds Washington Mutual R6 9.88 32.34 32.34 17.04 16.80 7.34 RWMGX 5.00 0.30 S&P 500 Value 9.83 31.99 31.99 15.62 16.61 7.28 N/A NA NA Large Growth Vanguard Growth Index I 10.36 32.41 32.41 16.45 20.36 8.06 VIGIX 4.00 0.08 CRSP US Large Cap Growth TR USD 10.36 31.75 31.75 15.14 19.16 7.91 N/A NA NA Mid-Cap Blend Vanguard Mid Cap Index Adm 8.62 35.15 35.15 15.40 22.08 10.10 VIMAX 4.00 0.10 CRSP US Mid Cap TR USD 8.63 35.27 35.27 15.73 21.77 10.11 N/A NA NA Small Value Target Small Capitalization Value T 8.80 35.87 35.87 15.56 19.31 10.98 TASVX 4.00 0.68 S&P 600 Value 9.61 39.98 39.98 17.73 20.12 10.08 N/A NA NA World Stock American Funds New Perspective R6 8.64 27.23 27.23 12.63 17.36 9.36 RNPGX 4.00 0.45 World Stock Harding Loevner Global Equity Inst 7.22 20.27 20.27 9.03 15.99 8.35 HLMVX 3.00 0.95 MSCI AC World Index ND USD 7.31 22.80 22.80 9.73 14.92 7.17 N/A NA NA Diversified Emerging Mkts Vanguard Emerging Mkts Stock Idx I 1.61 (4.99) (4.99) (2.77) 14.06 10.64 VEMIX 3.00 0.12 FTSE Emerging NR USD 1.55 (3.79) (3.79) (2.93) 14.78 11.53 N/A NA NA Real Estate Vanguard REIT Index I (0.68) 2.48 2.48 9.43 16.93 8.62 VGSNX 4.00 0.08 MSCI US REIT NR USD (1.01) 1.26 1.26 8.22 15.24 NA N/A NA NA Total Plan OPEB-GROSS RETURN 4.47 9.65 9.65 7.60 NA NA N/A NA NA Total Plan OPEB-NET RETURN 4.40 9.30 9.30 7.20 NA NA N/A NA NA OPEB Plan Policy Index 3.71 8.94 8.94 7.50 11.19 5.85 N/A NA NA City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 12

Quarterly Investment Monitor Data as of 12/31/2013 U.S. Fixed Income Style Map 36 Month moving average, Jan-09 - Dec-13 BC Government BC Credit Bond BC Municipal Bond BC High Yield Corporate Bond BC Mortgage Backed Securities Barcap US Fixed Income Vanguard Short-Term Bond Index Signal Vanguard Inflation-Protected Secs I PIMCO Total Return Instl Vanguard Total Bond Market Index Signal PIMCO Long Duration Total Return Instl Vanguard Long-Term Bond Index I Ivy High Income I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 13

Quarterly Investment Monitor Data as of 12/31/2013 U.S. Equity Style Map 36 Month moving average, Jan-09 - Dec-13 LgValue LgGrowth Small - Large MidValue MidGrowth SmValue SmGrowth Value - Growth S&P/BARRA Style Indices American Funds Washington Mutual R6 Vanguard Growth Index I Vanguard Mid Cap Index Adm Target Small Capitalization Value T Vanguard REIT Index I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 14

Quarterly Investment Monitor Data as of 12/31/2013 International Equity Style Map 36 Month moving average, Jan-09 - Dec-13 Europe Large Asia Pacific Large Small - Large Europe Small Asia Pacific Small European Emerging Asia Pacific Emerging Europe - Asia SBI Equity Indices American Funds New Perspective R6 Harding Loevner Global Equity Inst Vanguard Emerging Mkts Stock Idx I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 15

Quarterly Investment Monitor Data as of 12/31/2013 Core Fund Review City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 16

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Short-Term Bond Index Signal 1.76 Portfolio Information Investment Strategy Summary 11.59 % Cash Ticker VBSSX % US Stocks Morningstar Category Short-term Bond % Bonds The investment seeks to track the performance of a market-weighted bond index with a Avg Mkt Cap $MM NA % Non-US Stocks short-term dollar-weighted average maturity. The fund employs an indexing investment Cat Med Mkt Cap $MM 12648.11 approach designed to track the performance of the Barclays U.S. 1-5 Year % Pref Net Assets $MM 34147.67 Government/Credit Float Adjusted Index. This Index includes all medium and larger issues % Conv Turnover Ratio 51.00 of U.S. government, investment-grade corporate, and investment-grade international % Other % Assets in Top 10 Holdings 14.03 dollar-denominated bonds that have maturities between 1 and 5 years and are publicly % Non-US Bonds Total Number of Holdings 1784.00 issued. All of the fund's investments will be selected through the sampling process, and at Manager Name Joshua C. Barrickman least 80% of the fund's assets will be invested in bonds held in the index. 86.60 Manager Tenure 0.85 _______________________________________________________________________ Fund Incept Date 03/01/1994 __ Prospectus Exp Ratio 0.10 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States NA % Cash 1.76 8 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 86.60 7 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.05 Portfolio Ratings 6 % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 5 % Africa NA % Non-US Bonds 11.59 % Rank Cat 3 Yr 55 % Middle East NA 5 Year Mstar Rating 4 % Japan NA % Rank Cat 5 Yr 74 % Australasia NA 10 Year Mstar Rating 3 % Asia - Developed NA % Rank Cat 10 Yr 32 % Asia - Emerging NA 2 1 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 250 % Basic Materials NA Avg Eff Duration 2.68 0 % Communication Services NA Effective Maturity 2.80 % Consumer Cyclical NA Avg Credit Quality AA 225 -1 % Consumer Defensive NA AAA 74.86 % Healthcare NA AA 4.58 200 -2 % Industrials NA A 11.63 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 8.93 175 % Technology NA BB 0.00 5th to 25th Percentile 25th to Median % Energy NA B 0.00 Prospectus Exp Ratio 150 Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 0.00 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD % Utilities NA NR/NA 0.00 1 125 Turnover 100 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years US Treasury Note 0.25% 2.42% 75 Vanguard Short-Term Bond Index Signal 0.13 0.17 0.17 1.76 2.73 US Treasury Note 1.25% 1.57% Barclays US Govt/Credit 1-3 Yr TR USD 0.18 0.64 0.64 1.17 2.02 US Treasury Note 2.125% 1.53% 50 Universe(5%) 1.06 2.44 2.44 3.92 7.07 US Treasury Note 0.625% 1.30% Universe(25%) 0.62 1.07 1.07 2.63 4.92 US Treasury Note 0.625% 1.26% Universe(Median) 0.36 0.50 0.50 1.96 3.93 US Treasury Note 2.25% 1.26% 25 Universe(75%) 0.23 0.05 0.05 1.42 2.71 US Treasury Note 2.5% 1.21% Universe(95%) 0.01 -1.48 -1.48 0.63 1.31 US Treasury Note 1.375% 1.17% 0 0 US Treasury Note 0.375% 1.16% Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.625% 1.15% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 17

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Short-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 5 Total Return, % 75 0 -5 100 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -10 Up/Down Market Capture Ratio -15 Jan-11 - Dec-13 450 -20 400 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Up Mkt Capture Ratio, % 350 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 300 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 250 Vanguard Short-Term Bond Index Signal 1.70 1.31 4.09 7.28 5.51 4.38 4.03 3.08 2.05 0.17 200 Barclays US Govt/Credit 1-3 Yr TR USD 1.30 1.77 4.25 6.83 4.97 3.82 2.80 1.59 1.26 0.64 150 100 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 2 3 3 3 0 -200 0 200 400 600 800 1000 Down Mkt Capture Ratio, % 1 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Total Annualized StdDev, % Excess Annualized StdDev, % 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD Alpha, % Sharpe Ratio 0 Return vs. Risk 1 1 1 Jan-11 - Dec-13 -1 6 5 Total Annualized Return, % 4 -2 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 3 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 2 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 1 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 0 Vanguard Short-Term Bond Index Signal -0.55 2.07 90.61 1.38 1.20 0.70 -1 Barclays US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 1.94 0.55 0.00 Universe(5%) 1.56 3.23 85.13 2.40 2.57 2.37 -2 0 1 2 3 4 Universe(25%) 0.46 2.08 69.03 1.75 1.81 1.47 Total Annualized StdDev, % Universe(Median) 0.02 1.60 58.85 1.44 1.21 0.90 Universe(75%) -0.34 1.32 41.75 1.21 0.95 0.65 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Universe(95%) -1.27 0.79 17.00 0.57 0.65 0.32 Cash Barclays US Govt/Credit 1-3 Yr TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 18

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Inflation-Protected Secs I Portfolio Information Investment Strategy Summary % Cash Ticker VIPIX % US Stocks Morningstar Category Inflation-Protected Bond % Bonds The investment seeks to provide inflation protection and income consistent with Avg Mkt Cap $MM NA % Non-US Stocks investment in inflation-indexed securities. The fund invests at least 80% of its assets in Cat Med Mkt Cap $MM 21183.44 inflation-indexed bonds issued by the U.S. government, its agencies and instrumentalities, % Pref Net Assets $MM 26501.66 and corporations. It may invest in bonds of any maturity; however, its dollar-weighted % Conv Turnover Ratio 33.00 average maturity is expected to be in the range of 7 to 20 years. At a minimum, all bonds % Other % Assets in Top 10 Holdings 46.01 purchased by the fund will be rated investment-grade or, if unrated, will be considered by % Non-US Bonds Total Number of Holdings 42.00 the advisor to be investment-grade. Manager Name Gemma Wright-Casparius _______________________________________________________________________ Manager Tenure 2.37 99.88 __ Fund Incept Date 06/29/2000 Prospectus Exp Ratio 0.07 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States NA % Cash 0.12 8 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 99.88 6 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.00 Portfolio Ratings 4 % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 2 % Africa NA % Non-US Bonds 0.00 % Rank Cat 3 Yr 10 % Middle East NA 5 Year Mstar Rating 0 % Japan NA % Rank Cat 5 Yr 18 % Australasia NA 10 Year Mstar Rating -2 % Asia - Developed NA % Rank Cat 10 Yr 17 % Asia - Emerging NA -4 -6 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 1.1 400 % Basic Materials NA Avg Eff Duration 7.97 -8 % Communication Services NA Effective Maturity 8.40 1.0 % Consumer Cyclical NA Avg Credit Quality Government 350 -10 % Consumer Defensive NA AAA 100.00 0.9 % Healthcare NA AA 0.00 -12 % Industrials NA A 0.00 300 3 Months YTD 1 Year 3 Years 5 Years 0.8 % Real Estate NA BBB 0.00 % Technology NA BB 0.00 0.7 250 5th to 25th Percentile 25th to Median % Energy NA B 0.00 Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 0.00 0.6 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD % Utilities NA NR/NA 0.00 200 Turnover 0.5 Performance 3 Year to 1 3 5 Top Ten Holdings 0.4 150 Months Date Year Years Years US Treasury Note 5.54% Vanguard Inflation-Protected Secs I -2.24 -8.83 -8.83 3.38 5.46 US Treasury Note 5.14% 0.3 100 Barclays US Treasury US TIPS TR USD -2.00 -8.61 -8.61 3.55 5.63 US Treasury Note 4.83% Universe(5%) -0.27 -2.14 -2.14 3.58 6.79 US Treasury Note 4.81% 0.2 Universe(25%) -1.72 -8.19 -8.19 3.27 5.66 US Treasury Note 4.79% 50 Universe(Median) -2.06 -8.75 -8.75 2.99 4.99 US Treasury Note 0.125% 4.53% 0.1 Universe(75%) -2.17 -9.15 -9.15 2.65 4.69 US Treasury Note 4.42% Universe(95%) -2.32 -10.61 -10.61 1.53 3.79 US Treasury Note 1.125% 4.37% 0.0 0 US Treasury Note 1.25% 3.82% Prospectus Exp Ratio Turnover Ratio US Treasury Bond 2.375% 3.76% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 19

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Inflation-Protected Secs I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 100 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -5 Up/Down Market Capture Ratio -10 Jan-11 - Dec-13 180 -15 160 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Up Mkt Capture Ratio, % 140 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 120 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 100 Vanguard Inflation-Protected Secs I 8.25 2.78 0.46 11.82 -2.81 11.03 6.33 13.39 6.87 -8.83 80 Barclays US Treasury US TIPS TR USD 8.46 2.84 0.41 11.64 -2.35 11.41 6.31 13.56 6.98 -8.61 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 1 0.8 6 5 0 0 20 40 60 80 100 120 140 160 180 200 0.7 Down Mkt Capture Ratio, % 5 4 0.6 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Total Annualized StdDev, % Excess Annualized StdDev, % 0 4 Barclays US Treasury US TIPS TR USD 0.5 3 Alpha, % Sharpe Ratio 0.4 3 2 Return vs. Risk 0.3 -1 2 Jan-11 - Dec-13 0.2 6 1 1 0.1 5 Total Annualized Return, % -2 0.0 0 0 4 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 2 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Inflation-Protected Secs I -0.24 1.02 99.26 0.61 5.58 0.50 1 Barclays US Treasury US TIPS TR USD 0.00 1.00 100.00 0.65 5.43 0.00 Universe(5%) 0.65 1.07 99.66 0.76 5.91 4.53 0 0 1 2 3 4 5 6 7 8 9 10 11 Universe(25%) -0.03 1.00 99.18 0.63 5.49 1.72 Total Annualized StdDev, % Universe(Median) -0.31 0.96 98.28 0.58 5.26 0.74 Universe(75%) -0.52 0.91 92.98 0.54 5.01 0.51 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Universe(95%) -1.08 0.34 56.28 0.34 2.62 0.34 Cash Barclays US Treasury US TIPS TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 20

Quarterly Investment Monitor Data as of 12/31/2013 PIMCO Total Return Instl 15.30 Portfolio Information Investment Strategy Summary % Cash Ticker PTTRX % US Stocks Morningstar Category Intermediate-term Bond % Bonds The investment seeks maximum total return, consistent with preservation of capital and Avg Mkt Cap $MM NA % Non-US Stocks prudent investment management. The fund normally invests at least 65% of its total Cat Med Mkt Cap $MM NA assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which % Pref Net Assets $MM 237264.27 may be represented by forwards or derivatives such as options, futures contracts, or swap % Conv Turnover Ratio 380.00 agreements. It invests primarily in investment-grade debt securities, but may invest up to 34.94 % Other % Assets in Top 10 Holdings 80.24 10% of its total assets in high yield securities ("junk bonds") rated B or higher by Moody's, % Non-US Bonds 47.97 Total Number of Holdings 20635.00 or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of Manager Name William H. Gross comparable quality. Manager Tenure 26.66 _______________________________________________________________________ 1.60 Fund Incept Date 05/11/1987 __ Prospectus Exp Ratio 0.46 Portfolio Region Portfolio Structure Phone Number 888-877-4626 Performance vs. Peer Group % United States NA % Cash 15.30 10 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 34.94 % United Kingdom NA % Non-US Stocks 0.13 8 % Eurozone NA % Pref 0.06 Portfolio Ratings % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 1.60 3 Year Mstar Rating 6 % Africa NA % Non-US Bonds 47.97 % Rank Cat 3 Yr 32 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 36 4 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 4 % Asia - Emerging NA 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0 2 700 % Basic Materials NA Avg Eff Duration 4.42 % Communication Services NA Effective Maturity 5.15 % Consumer Cyclical NA Avg Credit Quality NA -2 % Consumer Defensive NA AAA NA 600 % Healthcare NA AA NA -4 % Industrials NA A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB NA 500 % Technology NA BB NA 5th to 25th Percentile 25th to Median % Energy NA B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B NA 400 PIMCO Total Return Instl BC Intermediate Government/Credit % Utilities NA NR/NA NA 1 Turnover 300 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Fin Fut Euro$ Cme 06/15/15 18.36% PIMCO Total Return Instl -0.03 -1.92 -1.92 4.08 6.91 Irs Usd 1.500 03/18/15-1y (Red) Cme 14.38% 200 BC Intermediate Government/Credit -0.02 -0.86 -0.86 2.91 3.96 Fin Fut Euro$ Cme 12/14/15 13.47% Universe(5%) 1.54 1.18 1.18 5.97 9.60 Fin Fut Euro$ Cme 09/14/15 12.41% Universe(25%) 0.73 -0.77 -0.77 4.41 7.54 Fin Fut Us 10yr Cbt 12/19/13 5.78% 100 Universe(Median) 0.21 -1.47 -1.47 3.76 6.20 Fin Fut Us 5yr Cbt 12/31/13 4.63% Universe(75%) -0.14 -2.26 -2.26 3.08 4.99 US Treasury Note 1.5% 3.51% Universe(95%) -0.56 -3.09 -3.09 2.04 3.28 Fin Fut Euro$ Cme 03/14/16 3.09% 0 0 Irs Usd 3.000 09/21/16-1y (Blu) Cme 2.35% Prospectus Exp Ratio Turnover Ratio Fin Fut Us 2yr Cbt 12/31/13 2.26% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 21

Quarterly Investment Monitor Data as of 12/31/2013 PIMCO Total Return Instl Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 30 0 25 25 Total Return Rank, % 20 50 15 Total Return, % 10 75 5 100 0 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -5 Up/Down Market Capture Ratio -10 Jan-11 - Dec-13 225 -15 200 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Up Mkt Capture Ratio, % 175 PIMCO Total Return Instl BC Intermediate Government/Credit 150 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 125 PIMCO Total Return Instl 5.14 2.89 3.99 9.07 4.82 13.83 8.83 4.16 10.36 -1.92 100 BC Intermediate Government/Credit 3.04 1.58 4.08 7.39 5.08 5.24 5.89 5.80 3.89 -0.86 75 50 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 4 3 0 -150 -100 -50 0 50 100 150 200 250 Down Mkt Capture Ratio, % 2 3 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Total Annualized StdDev, % Excess Annualized StdDev, % 2 BC Intermediate Government/Credit 1 Alpha, % Sharpe Ratio 1 2 0 Return vs. Risk 1 Jan-11 - Dec-13 1 9 -1 8 Total Annualized Return, % 7 -2 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 PIMCO Total Return Instl BC Intermediate Government/Credit 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 PIMCO Total Return Instl -0.15 1.48 66.02 1.02 3.89 2.49 1 BC Intermediate Government/Credit 0.00 1.00 100.00 1.31 2.14 0.00 0 Universe(5%) 2.71 1.47 92.00 1.88 3.88 2.69 -1 0 1 2 3 4 5 6 7 Universe(25%) 1.04 1.29 88.82 1.44 3.16 1.75 Total Annualized StdDev, % Universe(Median) 0.22 1.22 82.15 1.23 2.86 1.33 Universe(75%) -0.46 1.07 70.77 1.04 2.65 1.03 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Universe(95%) -1.05 0.78 39.91 0.78 2.12 0.68 Cash BC Intermediate Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 22

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Total Bond Market Index Signal 2.94 Portfolio Information Investment Strategy Summary 10.86 % Cash Ticker VBTSX % US Stocks Morningstar Category Intermediate-term Bond % Bonds The investment seeks the performance of a broad, market-weighted bond index. The fund Avg Mkt Cap $MM NA % Non-US Stocks employs an indexing investment approach designed to track the performance of the Cat Med Mkt Cap $MM NA Barclays U.S. Aggregate Float Adjusted Index. This Index represents a wide spectrum of % Pref Net Assets $MM 108115.42 public, investment-grade, taxable, fixed income securities in the United States-including % Conv Turnover Ratio 80.00 government, corporate, and international dollar-denominated bonds, as well as % Other % Assets in Top 10 Holdings 5.81 mortgage-backed and asset-backed securities-all with maturities of more than 1 year. All % Non-US Bonds Total Number of Holdings 16042.00 of the fund's investments will be selected through the sampling process, and at least 80% Manager Name Kenneth Volpert of the fund's assets will be invested in bonds held in the index. 86.08 Manager Tenure 21.10 _______________________________________________________________________ Fund Incept Date 12/11/1986 __ Prospectus Exp Ratio 0.10 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States NA % Cash 2.94 5 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 86.08 4 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.04 Portfolio Ratings % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % 3 % Europe - Emerging NA % Other 0.08 3 Year Mstar Rating % Africa NA % Non-US Bonds 10.86 % Rank Cat 3 Yr 67 % Middle East NA 5 Year Mstar Rating 2 % Japan NA % Rank Cat 5 Yr 83 % Australasia NA 10 Year Mstar Rating 1 % Asia - Developed NA % Rank Cat 10 Yr 44 % Asia - Emerging NA 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0.7 350 -1 % Basic Materials NA Avg Eff Duration 5.45 % Communication Services NA Effective Maturity 7.50 % Consumer Cyclical NA Avg Credit Quality AA -2 % Consumer Defensive NA AAA 71.45 0.6 300 % Healthcare NA AA 4.01 -3 % Industrials NA A 12.08 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 12.46 0.5 250 % Technology NA BB 0.00 5th to 25th Percentile 25th to Median % Energy NA B 0.00 Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 0.00 0.4 200 Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD % Utilities NA NR/NA 0.00 0.3 Turnover 150 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years US Treasury Note 0.375% 0.70% Vanguard Total Bond Market Index Signal -0.19 -2.15 -2.15 3.15 4.39 US Treasury Note 1.75% 0.63% 0.2 100 Barclays US Agg Float Adj TR USD -0.07 -1.97 -1.97 3.34 NA US Treasury Bond 6.25% 0.59% Universe(5%) -0.15 -2.26 -2.26 3.43 4.98 US Treasury Note 0.375% 0.59% Universe(25%) -0.18 -2.32 -2.32 3.05 4.19 US Treasury Note 0.25% 0.57% 0.1 50 Universe(Median) -0.27 -2.37 -2.37 2.98 4.05 US Treasury Note 1.5% 0.57% Universe(75%) -0.34 -2.52 -2.52 2.79 3.99 US Treasury Note 0.25% 0.56% Universe(95%) -0.47 -2.98 -2.98 2.71 3.76 US Treasury Note 0.375% 0.56% 0.0 0 US Treasury Note 2.125% 0.55% Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.625% 0.51% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 23

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Total Bond Market Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 8 0 6 25 Total Return Rank, % 4 50 Total Return, % 2 75 0 100 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -2 Up/Down Market Capture Ratio -4 Jan-11 - Dec-13 160 -6 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 140 Up Mkt Capture Ratio, % Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 120 100 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 80 Vanguard Total Bond Market Index Signal 4.24 2.40 4.29 7.02 5.15 6.04 6.54 7.68 4.15 -2.15 Barclays US Agg Float Adj TR USD NA NA NA NA NA NA 6.58 7.92 4.32 -1.97 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 0.0 2 4 0.7 0 0 20 40 60 80 100 120 140 160 180 -0.1 0.6 Down Mkt Capture Ratio, % 3 Morningstar IntermTerm Bond Index Universe Vanguard Total Bond Market Index Signal Excess Annualized StdDev, % -0.2 0.5 Total Annualized StdDev, % Barclays US Agg Float Adj TR USD Sharpe Ratio -0.3 0.4 Alpha, % 1 2 -0.4 0.3 Return vs. Risk -0.5 0.2 Jan-11 - Dec-13 1 5 -0.6 0.1 Total Annualized Return, % 4 -0.7 0 0 0.0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 3 Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 2 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Total Bond Market Index Signal -0.23 1.01 99.39 1.08 2.82 0.22 1 Barclays US Agg Float Adj TR USD 0.00 1.00 100.00 1.17 2.77 0.00 Universe(5%) -0.22 1.15 99.66 1.08 3.22 0.67 0 0 1 2 3 4 5 Universe(25%) -0.34 1.01 99.56 1.04 2.80 0.29 Total Annualized StdDev, % Universe(Median) -0.39 0.99 99.38 1.02 2.76 0.22 Universe(75%) -0.50 0.98 98.98 0.99 2.74 0.19 Morningstar IntermTerm Bond Index Universe Vanguard Total Bond Market Index Signal Universe(95%) -0.61 0.98 97.91 0.95 2.71 0.17 Cash Barclays US Agg Float Adj TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 24

Quarterly Investment Monitor Data as of 12/31/2013 PIMCO Long Duration Total Return Instl 7.30 Portfolio Information Investment Strategy Summary % Cash Ticker PLRIX % US Stocks 29.67 Morningstar Category Long-term Bond % Bonds The investment seeks maximum total return, consistent with prudent investment Avg Mkt Cap $MM 71794.94 % Non-US Stocks management. The fund invests at least 65% of its total assets in a diversified portfolio of Cat Med Mkt Cap $MM 71794.94 Fixed Income Instruments of varying maturities, which may be represented by forwards or % Pref Net Assets $MM 4176.33 derivatives such as options, futures contracts or swap agreements. It invests primarily in % Conv Turnover Ratio 81.00 investment grade debt securities, but may invest up to 10% of its total assets in high yield % Other % Assets in Top 10 Holdings 44.93 securities ("junk bonds") that are rated B or higher by Moody's, or equivalently rated by % Non-US Bonds Total Number of Holdings 836.00 S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. Manager Name Stephen A. Rodosky 62.71 _______________________________________________________________________ Manager Tenure 6.42 __ Fund Incept Date 08/31/2006 Prospectus Exp Ratio 0.50 Portfolio Region Portfolio Structure Phone Number 888-877-4626 Performance vs. Peer Group % United States 100.00 % Cash 7.30 12 % Canada 0.00 % US Stocks 0.00 % Latin America 0.00 % Bonds 62.71 10 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.25 Portfolio Ratings 8 % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % 3 Year Mstar Rating 6 % Europe - Emerging 0.00 % Other 0.07 % Africa 0.00 % Non-US Bonds 29.67 % Rank Cat 3 Yr 58 4 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 41 2 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.00 % Rank Cat 10 Yr NA 0 % Asia - Emerging 0.00 -2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -4 2 160 % Basic Materials 0.00 Avg Eff Duration 13.04 % Communication Services 0.00 Effective Maturity 20.86 -6 % Consumer Cyclical 0.00 Avg Credit Quality NA 140 % Consumer Defensive 0.00 AAA NA -8 % Healthcare 0.00 AA NA -10 % Industrials 0.00 A NA 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 0.00 BB NA 100 5th to 25th Percentile 25th to Median % Energy 0.00 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 100.00 Below B NA PIMCO Long Duration Total Return Instl BC Long Government/Credit % Utilities 0.00 NR/NA NA 1 80 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings 60 Months Date Year Years Years Fin Fut Euro$ Cme 06/15/15 22.19% PIMCO Long Duration Total Return Instl -0.21 -8.56 -8.56 6.14 7.11 US Treasury Bond 3.125% 5.13% 40 BC Long Government/Credit -0.10 -8.83 -8.83 6.70 6.40 US Treasury Bond 4.25% 3.18% Universe(5%) 1.66 -0.48 -0.48 7.92 10.01 Fin Fut Us 5yr Cbt 12/31/13 3.08% Universe(25%) 0.35 -3.51 -3.51 7.33 7.64 US Treasury Bond 5.5% 2.88% 20 Universe(Median) -0.13 -5.36 -5.36 6.25 7.11 US Treasury Bond 2.75% 2.74% Universe(75%) -0.41 -6.77 -6.77 4.85 5.33 U S Treas Bd Stripped Prin Pmt 1.56% Universe(95%) -1.35 -8.82 -8.82 2.86 2.97 US Treasury Bond 5.25% 1.43% 0 0 Resolution Fdg Fed Bk Prin Stp 1.41% Prospectus Exp Ratio Turnover Ratio AID 5.5% 1.33% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 25

Quarterly Investment Monitor Data as of 12/31/2013 PIMCO Long Duration Total Return Instl Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 25 0 20 25 Total Return Rank, % 15 10 50 5 Total Return, % 0 75 -5 -10 100 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -15 -20 Up/Down Market Capture Ratio -25 Jan-11 - Dec-13 120 -30 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 100 Up Mkt Capture Ratio, % PIMCO Long Duration Total Return Instl BC Long Government/Credit 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 PIMCO Long Duration Total Return Instl NA NA NA 7.83 12.38 5.62 11.64 18.57 10.28 -8.56 BC Long Government/Credit 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 -8.83 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 2 10 9 0 -20 0 20 40 60 80 100 120 9 8 Down Mkt Capture Ratio, % 4 8 7 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Total Annualized StdDev, % Excess Annualized StdDev, % 7 3 6 BC Long Government/Credit 6 Sharpe Ratio 5 Alpha, % 2 1 5 4 4 Return vs. Risk 1 3 3 Jan-11 - Dec-13 2 9 2 0 8 1 1 Total Annualized Return, % 7 -1 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile PIMCO Long Duration Total Return Instl BC Long Government/Credit 5 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 PIMCO Long Duration Total Return Instl 0.09 0.90 94.34 0.74 8.46 2.21 BC Long Government/Credit 0.00 1.00 100.00 0.75 9.12 0.00 1 Universe(5%) 4.22 0.99 98.96 1.44 9.03 8.04 0 0 1 2 3 4 5 6 7 8 9 10 Universe(25%) 3.31 0.91 95.19 1.19 8.54 5.60 Total Annualized StdDev, % Universe(Median) 0.93 0.60 80.74 0.86 6.28 4.74 Universe(75%) 0.26 0.43 74.67 0.73 4.49 2.00 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Universe(95%) -0.14 0.17 35.32 0.68 3.30 0.95 Cash BC Long Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 26

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Long-Term Bond Index I Portfolio Information Investment Strategy Summary % Cash 14.73 Ticker VBLLX % US Stocks Morningstar Category Long-term Bond % Bonds The investment seeks to track the performance of a market-weighted bond index with a Avg Mkt Cap $MM NA % Non-US Stocks long-term dollar-weighted average maturity. The fund employs an indexing investment Cat Med Mkt Cap $MM NA approach designed to track the performance of the Barclays U.S. Long Government/Credit % Pref Net Assets $MM 5735.22 Float Adjusted Index. This Index includes all medium and larger issues of U.S. % Conv Turnover Ratio 41.00 government, investment-grade corporate, and investment-grade international % Other % Assets in Top 10 Holdings 17.39 dollar-denominated bonds that have maturities of greater than 10 years and are publicly % Non-US Bonds Total Number of Holdings 1642.00 issued. All of the fund's investments will be selected through the sampling process, and at Manager Name Joshua C. Barrickman least 80% of the fund's assets will be invested in bonds held in the index. 84.87 Manager Tenure 0.85 _______________________________________________________________________ Fund Incept Date 03/01/1994 __ Prospectus Exp Ratio 0.07 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States NA % Cash 0.36 12 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 84.87 10 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.03 Portfolio Ratings 8 % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % 3 Year Mstar Rating 6 % Europe - Emerging NA % Other 0.01 % Africa NA % Non-US Bonds 14.73 % Rank Cat 3 Yr 50 4 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 53 2 % Australasia NA 10 Year Mstar Rating NA % Asia - Developed NA % Rank Cat 10 Yr 1 0 % Asia - Emerging NA -2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -4 2 160 % Basic Materials NA Avg Eff Duration 14.03 % Communication Services NA Effective Maturity 24.00 -6 % Consumer Cyclical NA Avg Credit Quality A 140 % Consumer Defensive NA AAA 38.00 -8 % Healthcare NA AA 7.30 -10 % Industrials NA A 24.67 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 30.03 % Technology NA BB 0.00 100 5th to 25th Percentile 25th to Median % Energy NA B 0.00 Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 0.00 Vanguard Long-Term Bond Index I BC Long Government/Credit % Utilities NA NR/NA 0.00 1 80 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings 60 Months Date Year Years Years US Treasury Bond 2.75% 2.15% Vanguard Long-Term Bond Index I -0.45 -9.01 -9.01 6.51 6.34 US Treasury Bond 3.125% 2.14% 40 BC Long Government/Credit -0.10 -8.83 -8.83 6.70 6.40 US Treasury Bond 3.625% 2.11% Universe(5%) 1.66 -0.48 -0.48 7.92 10.01 US Treasury Bond 4.25% 2.11% Universe(25%) 0.35 -3.51 -3.51 7.33 7.64 US Treasury Bond 2.75% 1.84% 20 Universe(Median) -0.13 -5.36 -5.36 6.25 7.11 US Treasury Bond 4.75% 1.63% Universe(75%) -0.41 -6.77 -6.77 4.85 5.33 US Treasury Bond 4.375% 1.61% Universe(95%) -1.35 -8.82 -8.82 2.86 2.97 US Treasury Bond 4.375% 1.35% 0 0 US Treasury Bond 3.875% 1.23% Prospectus Exp Ratio Turnover Ratio US Treasury Bond 5.375% 1.21% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 27

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Long-Term Bond Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 25 0 20 25 Total Return Rank, % 15 10 50 5 Total Return, % 0 75 -5 -10 100 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -15 -20 Up/Down Market Capture Ratio -25 Jan-11 - Dec-13 120 -30 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 100 Up Mkt Capture Ratio, % Vanguard Long-Term Bond Index I BC Long Government/Credit 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 Vanguard Long-Term Bond Index I 8.40 5.32 2.75 6.71 8.77 1.91 10.43 22.23 8.63 -9.01 BC Long Government/Credit 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 -8.83 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 2 10 9 0 -20 0 20 40 60 80 100 120 9 8 Down Mkt Capture Ratio, % 4 8 7 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Total Annualized StdDev, % Excess Annualized StdDev, % 7 3 6 BC Long Government/Credit 6 Sharpe Ratio 5 Alpha, % 2 1 5 4 4 Return vs. Risk 1 3 3 Jan-11 - Dec-13 2 9 2 0 8 1 1 Total Annualized Return, % 7 -1 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Long-Term Bond Index I BC Long Government/Credit 5 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 Vanguard Long-Term Bond Index I -0.28 1.02 99.27 0.71 9.30 0.81 BC Long Government/Credit 0.00 1.00 100.00 0.75 9.12 0.00 1 Universe(5%) 4.22 0.99 98.96 1.44 9.03 8.04 0 0 1 2 3 4 5 6 7 8 9 10 Universe(25%) 3.31 0.91 95.19 1.19 8.54 5.60 Total Annualized StdDev, % Universe(Median) 0.93 0.60 80.74 0.86 6.28 4.74 Universe(75%) 0.26 0.43 74.67 0.73 4.49 2.00 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Universe(95%) -0.14 0.17 35.32 0.68 3.30 0.95 Cash BC Long Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 28

Quarterly Investment Monitor Data as of 12/31/2013 Ivy High Income I 7.03 Portfolio Information Investment Strategy Summary % Cash Ticker IVHIX % US Stocks Morningstar Category High Yield Bond % Bonds The investment seeks to provide total return through a combination of high current income 33.99 Avg Mkt Cap $MM NA % Non-US Stocks and capital appreciation. The fund invests primarily in a diversified portfolio of high-yield, Cat Med Mkt Cap $MM 13690.77 high-risk, fixed income securities, including secured and unsecured loan assignments, loan % Pref Net Assets $MM 10103.99 participations and other loan instruments (loans), of U.S. and foreign issuers, the risks of % Conv Turnover Ratio 68.00 which are, in the judgment of the adviser consistent with the fund's objective. It invests % Other % Assets in Top 10 Holdings 19.49 primarily in lower quality debt securities, which include debt securities rated BBB+ or 52.57 % Non-US Bonds Total Number of Holdings 274.00 lower. Manager Name William M. Nelson _______________________________________________________________________ 6.33 Manager Tenure 0.11 __ Fund Incept Date 07/31/1997 Prospectus Exp Ratio 0.70 Portfolio Region Portfolio Structure Phone Number 800-777-6472 Performance vs. Peer Group % United States 100.00 % Cash 7.03 20 % Canada 0.00 % US Stocks 0.02 % Latin America 0.00 % Bonds 52.57 18 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 16 % Europe - ex Euro 0.00 % Conv 0.06 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 6.33 3 Year Mstar Rating 14 % Africa 0.00 % Non-US Bonds 33.99 % Rank Cat 3 Yr 1 % Middle East 0.00 5 Year Mstar Rating 12 % Japan 0.00 % Rank Cat 5 Yr 12 % Australasia 0.00 10 Year Mstar Rating 10 % Asia - Developed 0.00 % Rank Cat 10 Yr 4 % Asia - Emerging 0.00 8 6 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 160 % Basic Materials NA Avg Eff Duration 4.35 4 % Communication Services NA Effective Maturity 5.42 % Consumer Cyclical NA Avg Credit Quality B 140 2 % Consumer Defensive NA AAA 0.00 % Healthcare NA AA 0.04 0 % Industrials NA A 0.40 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 2.57 % Technology NA BB 16.65 100 5th to 25th Percentile 25th to Median % Energy NA B 44.71 Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 29.56 Ivy High Income I BC High Yield Corporate Bond % Utilities NA NR/NA 6.07 1 80 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings 60 Months Date Year Years Years Laureate Educ 144A 9.25% 2.83% Ivy High Income I 3.37 10.46 10.46 11.26 18.47 Magic 2 Lien (Misys Plc) 2.57% 40 BC High Yield Corporate Bond 3.58 7.44 7.44 9.32 18.93 Us Foods 8.5% 2.51% Universe(5%) 4.12 11.54 11.54 10.25 19.67 Fmg Resources Pty Ltd 1.98% Universe(25%) 3.57 8.12 8.12 8.83 17.71 Formula 1 (Proj Green Ii) 1.86% 20 Universe(Median) 3.26 6.85 6.85 8.25 16.47 Formula1-Delta 2 Sarl B 1.83% Universe(75%) 3.02 5.89 5.89 7.68 15.06 Us Foods Senior Secured 1.59% Universe(95%) 1.80 4.10 4.10 5.65 11.05 Hilton Tl B2 1l 1.51% 0 0 Hd Sply 11.5% 1.47% Prospectus Exp Ratio Turnover Ratio Hlt Property Acq Mz E 1.35% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 29

Quarterly Investment Monitor Data as of 12/31/2013 Ivy High Income I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 25 Total Return Rank, % 60 50 40 Total Return, % 75 20 100 0 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -20 Up/Down Market Capture Ratio Jan-11 - Dec-13 140 -40 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 120 Up Mkt Capture Ratio, % Ivy High Income I BC High Yield Corporate Bond 100 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 80 Ivy High Income I 7.58 0.59 9.69 4.05 -19.73 46.56 15.62 6.44 17.16 10.46 60 BC High Yield Corporate Bond 11.13 2.74 11.85 1.87 -26.16 58.21 15.12 4.98 15.81 7.44 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 3 9 5 0 -20 0 20 40 60 80 100 120 140 160 8 3 Down Mkt Capture Ratio, % 4 7 2 Morningstar High Yield Universe Ivy High Income I Total Annualized StdDev, % Excess Annualized StdDev, % 2 6 BC High Yield Corporate Bond 1 3 Sharpe Ratio 5 Alpha, % 0 4 2 Return vs. Risk -1 1 3 Jan-11 - Dec-13 -2 12 2 1 -3 1 10 Total Annualized Return, % -4 0 0 0 8 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Ivy High Income I BC High Yield Corporate Bond 6 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 4 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Ivy High Income I 3.88 0.76 95.81 2.13 5.04 1.88 2 BC High Yield Corporate Bond 0.00 1.00 100.00 1.39 6.50 0.00 Universe(5%) 2.18 1.24 99.26 1.85 8.73 4.16 0 0 2 4 6 8 10 12 14 16 Universe(25%) 0.24 1.08 98.71 1.39 7.13 2.25 Total Annualized StdDev, % Universe(Median) -0.75 0.99 97.11 1.25 6.51 1.28 Universe(75%) -1.68 0.88 92.97 1.14 5.89 0.86 Morningstar High Yield Universe Ivy High Income I Universe(95%) -3.45 0.58 78.54 0.83 4.09 0.66 Cash BC High Yield Corporate Bond City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 30

Quarterly Investment Monitor Data as of 12/31/2013 American Funds Washington Mutual R6 2.40 Portfolio Information Investment Strategy Summary 8.29 % Cash Ticker RWMGX % US Stocks Morningstar Category Large Value % Bonds The investment seeks to produce income and to provide an opportunity for growth of Avg Mkt Cap $MM 75743.69 % Non-US Stocks principal consistent with sound common stock investing. The fund invests primarily in Cat Med Mkt Cap $MM 78800.90 common stocks of established companies that are listed on, or meet the financial listing % Pref Net Assets $MM 69356.47 requirements of, the New York Stock Exchange and have a strong record of earnings and % Conv Turnover Ratio 22.00 dividends. Its advisor strives to maintain a fully invested, diversified portfolio, consisting % Other % Assets in Top 10 Holdings 34.61 primarily of high-quality common stocks. % Non-US Bonds Total Number of Holdings 171.00 Manager Name Alan N. Berro _______________________________________________________________________ __ 89.24 Manager Tenure 16.01 Fund Incept Date 07/31/1952 Prospectus Exp Ratio 0.30 Portfolio Region Portfolio Structure Phone Number 800-421-4225 Performance vs. Peer Group % United States 91.50 % Cash 2.40 45 % Canada 1.91 % US Stocks 89.24 % Latin America 0.00 % Bonds 0.07 40 % United Kingdom 3.46 % Non-US Stocks 8.29 % Eurozone 1.54 % Pref 0.00 Portfolio Ratings 35 % Europe - ex Euro 1.25 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 8 30 % Middle East 0.13 5 Year Mstar Rating % Japan 0.21 % Rank Cat 5 Yr 32 25 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 40 20 % Asia - Emerging 0.00 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 180 % Basic Materials 3.34 Avg Eff Duration NA 10 % Communication Services 5.00 Effective Maturity NA % Consumer Cyclical 11.36 Avg Credit Quality NA 160 5 % Consumer Defensive 9.66 AAA NA % Healthcare 11.96 AA NA 140 0 % Industrials 22.64 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 6.25 BB NA 120 5th to 25th Percentile 25th to Median % Energy 13.22 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 12.64 Below B NA 100 American Funds Washington Mutual R6 S&P 500 Value % Utilities 3.93 NR/NA NA 1 Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Boeing Co 5.19% 60 American Funds Washington Mutual R6 9.88 32.34 32.34 17.04 16.80 Home Depot, Inc. 4.88% S&P 500 Value 9.83 31.99 31.99 15.62 16.61 Chevron Corp 4.13% 40 Universe(5%) 12.10 40.39 40.39 18.48 20.98 Merck & Co Inc 3.68% Universe(25%) 10.59 35.42 35.42 16.23 17.72 Microsoft Corporation 3.14% 20 Universe(Median) 9.49 32.09 32.09 14.92 16.46 Royal Dutch Shell PLC ADR Class B 2.98% Universe(75%) 8.75 29.72 29.72 13.64 15.10 Union Pacific Corp 2.84% Universe(95%) 6.96 23.45 23.45 10.75 13.11 Wells Fargo & Co 2.64% 0 0 PepsiCo Inc 2.58% Prospectus Exp Ratio Turnover Ratio American Express Co 2.55% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 31

Quarterly Investment Monitor Data as of 12/31/2013 American Funds Washington Mutual R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -30 Up/Down Market Capture Ratio -40 Jan-11 - Dec-13 200 -50 180 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 160 Up Mkt Capture Ratio, % American Funds Washington Mutual R6 S&P 500 Value 140 120 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 100 American Funds Washington Mutual R6 9.92 3.55 18.04 3.97 -33.10 19.24 13.69 7.35 12.85 32.34 80 S&P 500 Value 15.03 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 31.99 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 5 2 16 7 0 0 20 40 60 80 100 120 140 160 180 4 14 Down Mkt Capture Ratio, % 6 3 12 Morningstar Large Value Universe American Funds Washington Mutual R6 Excess Annualized StdDev, % 5 Total Annualized StdDev, % 2 S&P 500 Value 10 1 Sharpe Ratio 4 Alpha, % 0 1 8 -1 3 Return vs. Risk 6 -2 2 Jan-11 - Dec-13 4 30 -3 1 2 -4 25 Total Annualized Return, % -5 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile American Funds Washington Mutual R6 S&P 500 Value 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error American Funds Washington Mutual R6 4.88 0.74 93.28 1.61 10.08 4.31 5 S&P 500 Value 0.00 1.00 100.00 1.17 13.16 0.00 Universe(5%) 4.69 1.19 98.75 1.58 15.89 6.51 0 0 5 10 15 20 25 Universe(25%) 1.35 1.04 97.47 1.25 14.10 4.16 Total Annualized StdDev, % Universe(Median) 0.02 0.97 95.89 1.14 12.98 3.06 Universe(75%) -1.71 0.88 92.60 1.02 11.89 2.29 Morningstar Large Value Universe American Funds Washington Mutual R6 Universe(95%) -4.65 0.69 84.20 0.81 9.46 1.78 Cash S&P 500 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 32

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Growth Index I 2.69 Portfolio Information Investment Strategy Summary 1.47 % Cash Ticker VIGIX % US Stocks Morningstar Category Large Growth % Bonds The investment seeks to track the performance of a benchmark index that measures the Avg Mkt Cap $MM 53384.35 % Non-US Stocks investment return of large-capitalization growth stocks. The fund employs an indexing Cat Med Mkt Cap $MM 62663.94 investment approach designed to track the performance of the CRSP US Large Cap Growth % Pref Net Assets $MM 37485.44 Index, a broadly diversified index predominantly made up of growth stocks of large U.S. % Conv Turnover Ratio 21.00 companies. It attempts to replicate the target index by investing all, or substantially all, of % Other % Assets in Top 10 Holdings 24.51 its assets in the stocks that make up the index, holding each stock in approximately the % Non-US Bonds Total Number of Holdings 352.00 same proportion as its weighting in the index. Manager Name Gerard C. O'Reilly _______________________________________________________________________ 95.83 Manager Tenure 19.02 __ Fund Incept Date 11/02/1992 Prospectus Exp Ratio 0.08 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States 98.49 % Cash 0.01 45 % Canada 0.22 % US Stocks 95.83 % Latin America 0.00 % Bonds 0.00 40 % United Kingdom 0.31 % Non-US Stocks 1.47 % Eurozone 0.53 % Pref 0.00 Portfolio Ratings 35 % Europe - ex Euro 0.33 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 2.69 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 24 30 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 25 25 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.12 % Rank Cat 10 Yr 34 20 % Asia - Emerging 0.00 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 300 % Basic Materials 3.12 Avg Eff Duration NA 10 % Communication Services 3.41 Effective Maturity NA % Consumer Cyclical 18.49 Avg Credit Quality NA 5 % Consumer Defensive 8.11 AAA NA 250 % Healthcare 10.34 AA NA 0 % Industrials 10.38 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 4.33 BBB NA % Technology 27.75 BB NA 200 5th to 25th Percentile 25th to Median % Energy 7.70 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 6.17 Below B NA Vanguard Growth Index I CRSP US Large Cap Growth TR USD % Utilities 0.21 NR/NA NA 1 150 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Apple Inc 6.47% 100 Vanguard Growth Index I 10.36 32.41 32.41 16.45 20.36 Google, Inc. Class A 3.72% CRSP US Large Cap Growth TR USD 10.36 31.75 31.75 15.14 19.16 International Business Machines Corp 2.52% Universe(5%) 12.81 42.86 42.86 18.95 24.46 Coca-Cola Co 2.06% 50 Universe(25%) 11.46 36.49 36.49 16.52 20.51 Amazon.com Inc 1.84% Universe(Median) 10.51 34.21 34.21 14.91 18.85 Philip Morris International, Inc. 1.69% Universe(75%) 9.56 31.06 31.06 13.45 17.23 Qualcomm, Inc. 1.62% Universe(95%) 7.70 26.70 26.70 10.68 14.38 Oracle Corporation 1.57% 0 0 Intel Corp 1.52% Prospectus Exp Ratio Turnover Ratio Schlumberger NV 1.50% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 33

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Growth Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -40 Up/Down Market Capture Ratio Jan-11 - Dec-13 250 -60 225 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 200 Up Mkt Capture Ratio, % Vanguard Growth Index I CRSP US Large Cap Growth TR USD 175 150 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 125 Vanguard Growth Index I 7.34 5.24 9.16 12.73 -38.19 36.50 17.17 1.89 17.04 32.41 100 CRSP US Large Cap Growth TR USD 6.99 6.40 10.32 15.66 -38.67 35.92 15.77 0.58 15.20 31.75 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 4 2 18 8 0 0 25 50 75 100 125 150 175 200 225 3 16 7 Down Mkt Capture Ratio, % 2 14 6 Morningstar Large Growth Universe Vanguard Growth Index I Total Annualized StdDev, % Excess Annualized StdDev, % 1 12 CRSP US Large Cap Growth TR USD 5 Sharpe Ratio 0 10 Alpha, % 1 4 -1 8 Return vs. Risk 3 -2 6 Jan-11 - Dec-13 2 40 -3 4 -4 2 1 35 Total Annualized Return, % 30 -5 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 25 Vanguard Growth Index I CRSP US Large Cap Growth TR USD 20 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 15 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 10 Vanguard Growth Index I 1.50 0.97 99.69 1.26 12.74 0.80 5 CRSP US Large Cap Growth TR USD 0.00 1.00 100.00 1.14 13.07 0.00 Universe(5%) 3.77 1.23 97.80 1.36 16.81 7.12 0 0 5 10 15 20 25 30 Universe(25%) 1.25 1.09 96.32 1.19 14.77 4.40 Total Annualized StdDev, % Universe(Median) -0.38 1.03 94.46 1.08 13.92 3.41 Universe(75%) -1.98 0.97 92.01 0.96 12.99 2.71 Morningstar Large Growth Universe Vanguard Growth Index I Universe(95%) -4.88 0.82 82.27 0.78 11.42 2.12 Cash CRSP US Large Cap Growth TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 34

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Mid Cap Index Adm 4.51 Portfolio Information Investment Strategy Summary % Cash 3.24 Ticker VIMAX % US Stocks Morningstar Category Mid-Cap Blend % Bonds The investment seeks to track the performance of a benchmark index that measures the Avg Mkt Cap $MM 10150.84 % Non-US Stocks investment return of mid-capitalization stocks. The fund employs an indexing investment Cat Med Mkt Cap $MM 7633.69 approach designed to track the performance of the CRSP US Mid Cap Index, a broadly % Pref Net Assets $MM 46723.65 diversified index of stocks of mid-size U.S. companies. It attempts to replicate the target % Conv Turnover Ratio 17.00 index by investing all, or substantially all, of its assets in the stocks that make up the % Other % Assets in Top 10 Holdings 6.75 index, holding each stock in approximately the same proportion as its weighting in the % Non-US Bonds Total Number of Holdings 368.00 index. Manager Name Donald M. Butler 91.94 _______________________________________________________________________ Manager Tenure 15.62 __ Fund Incept Date 05/21/1998 Prospectus Exp Ratio 0.10 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States 96.59 % Cash 0.31 50 % Canada 0.60 % US Stocks 91.94 % Latin America 0.00 % Bonds 0.00 45 % United Kingdom 0.82 % Non-US Stocks 3.24 % Eurozone 0.95 % Pref 0.00 Portfolio Ratings 40 % Europe - ex Euro 0.70 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 4.51 3 Year Mstar Rating 35 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 40 % Middle East 0.00 5 Year Mstar Rating 30 % Japan 0.00 % Rank Cat 5 Yr 22 % Australasia 0.00 10 Year Mstar Rating 25 % Asia - Developed 0.34 % Rank Cat 10 Yr 16 % Asia - Emerging 0.00 20 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 3 300 % Basic Materials 5.38 Avg Eff Duration NA 10 % Communication Services 1.36 Effective Maturity NA % Consumer Cyclical 18.81 Avg Credit Quality NA 5 % Consumer Defensive 7.75 AAA NA 250 % Healthcare 9.89 AA NA 0 % Industrials 14.98 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 4.50 BBB NA % Technology 14.91 BB NA 2 200 5th to 25th Percentile 25th to Median % Energy 7.24 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 10.75 Below B NA Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD % Utilities 4.41 NR/NA NA 150 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Delta Air Lines Inc 0.85% 1 100 Vanguard Mid Cap Index Adm 8.62 35.15 35.15 15.40 22.08 IntercontinentalExchange Group Inc 0.83% CRSP US Mid Cap TR USD 8.63 35.27 35.27 15.73 21.77 Micron Technology, Inc. 0.75% Universe(5%) 12.37 45.36 45.36 19.26 26.03 Netflix, Inc. 0.70% 50 Universe(25%) 10.01 37.44 37.44 16.37 22.47 Macy's Inc 0.68% Universe(Median) 8.70 33.87 33.87 15.26 20.30 Delphi Automotive PLC 0.62% Universe(75%) 8.12 30.93 30.93 13.36 18.74 Cerner Corporation 0.61% Universe(95%) 6.01 26.25 26.25 8.56 13.91 Mylan Inc 0.57% 0 0 Western Digital Corporation 0.57% Prospectus Exp Ratio Turnover Ratio Moody's Corporation 0.56% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 35

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Mid Cap Index Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 40 50 Total Return, % 20 75 0 100 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -20 Up/Down Market Capture Ratio -40 Jan-11 - Dec-13 225 -60 200 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Up Mkt Capture Ratio, % 175 Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD 150 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 125 Vanguard Mid Cap Index Adm 20.42 14.04 13.69 6.17 -41.78 40.48 25.59 -1.97 15.99 35.15 100 CRSP US Mid Cap TR USD 20.28 13.31 15.32 7.04 -41.83 36.90 26.16 -1.79 16.69 35.27 75 50 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 2 20 9 0 0 25 50 75 100 125 150 175 200 225 3 18 8 Down Mkt Capture Ratio, % 2 16 7 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm Excess Annualized StdDev, % 1 Total Annualized StdDev, % 14 6 CRSP US Mid Cap TR USD 0 12 Sharpe Ratio 5 Alpha, % -1 1 10 -2 4 8 Return vs. Risk -3 3 6 Jan-11 - Dec-13 -4 2 30 4 -5 2 1 25 Total Annualized Return, % -6 -7 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Mid Cap Index Adm -0.74 1.03 99.77 1.06 14.53 0.83 5 CRSP US Mid Cap TR USD 0.00 1.00 100.00 1.11 14.04 0.00 Universe(5%) 3.34 1.30 98.41 1.36 19.04 8.98 0 0 5 10 15 20 25 30 35 Universe(25%) 0.47 1.12 97.61 1.09 16.08 5.51 Total Annualized StdDev, % Universe(Median) -1.38 1.07 95.19 1.00 15.25 3.74 Universe(75%) -3.09 0.95 91.41 0.89 14.07 2.72 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm Universe(95%) -6.42 0.76 79.96 0.63 11.54 2.22 Cash CRSP US Mid Cap TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 36

Quarterly Investment Monitor Data as of 12/31/2013 Target Small Capitalization Value T 3.70 2.19 Portfolio Information Investment Strategy Summary % Cash Ticker TASVX % US Stocks Morningstar Category Small Value % Bonds The investment seeks above-average capital appreciation. The Portfolio seeks investments Avg Mkt Cap $MM 2338.14 % Non-US Stocks that will increase in value. It normally invests at least 80% of its investable assets in Cat Med Mkt Cap $MM 2225.29 common stocks of small companies. Small companies are those companies with market % Pref Net Assets $MM 1893.05 capitalizations comparable to those in the Russell 2000 Value Index. As of December 31, % Conv Turnover Ratio 40.00 2012, the Russell 2000 Value Index median market capitalization was approximately $472 % Other % Assets in Top 10 Holdings 9.24 million and the largest company by market capitalization was $4.664 billion. Market % Non-US Bonds Total Number of Holdings 661.00 capitalization is measured at the time of purchase. Manager Name Paul E. Viera, Jr. _______________________________________________________________________ Manager Tenure 12.01 93.73 __ Fund Incept Date 01/05/1993 Prospectus Exp Ratio 0.68 Portfolio Region Portfolio Structure Phone Number 800-225-1852 Performance vs. Peer Group % United States 97.72 % Cash 3.70 45 % Canada 0.86 % US Stocks 93.73 % Latin America 0.22 % Bonds 0.02 40 % United Kingdom 0.02 % Non-US Stocks 2.19 % Eurozone 0.66 % Pref 0.00 Portfolio Ratings 35 % Europe - ex Euro 0.26 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.36 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 29 30 % Middle East 0.23 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 59 25 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 9 20 % Asia - Emerging 0.02 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 200 % Basic Materials 5.79 Avg Eff Duration NA 10 % Communication Services 0.45 Effective Maturity NA % Consumer Cyclical 10.14 Avg Credit Quality NA 180 5 % Consumer Defensive 4.56 AAA NA % Healthcare 6.40 AA NA 160 0 % Industrials 23.55 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 4.35 BBB NA 140 % Technology 13.43 BB NA 5th to 25th Percentile 25th to Median % Energy 6.31 B NA Prospectus Exp Ratio 120 Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 21.48 Below B NA Target Small Capitalization Value T S&P 600 Value % Utilities 3.53 NR/NA NA 1 100 Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Bristow Group, Inc. 1.26% 60 Target Small Capitalization Value T 8.80 35.87 35.87 15.56 19.31 Hexcel Corporation 0.99% S&P 600 Value 9.61 39.98 39.98 17.73 20.12 Protective Life Corp 0.94% 40 Universe(5%) 12.22 44.87 44.87 18.51 27.66 Aaron's, Inc. 0.90% Universe(25%) 10.43 39.70 39.70 16.17 22.20 EnerSys, Inc. 0.90% Universe(Median) 9.13 36.16 36.16 15.29 20.09 Littelfuse Inc. 0.88% 20 Universe(75%) 8.36 32.59 32.59 13.54 18.34 Cabot Corporation 0.87% Universe(95%) 5.21 27.74 27.74 9.86 15.88 GATX Corp 0.86% 0 0 Silgan Holdings, Inc. 0.82% Prospectus Exp Ratio Turnover Ratio American Equity Investment Life Holding Company 0.81% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 37

Quarterly Investment Monitor Data as of 12/31/2013 Target Small Capitalization Value T Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -40 Up/Down Market Capture Ratio Jan-11 - Dec-13 120 -60 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 100 Up Mkt Capture Ratio, % Target Small Capitalization Value T S&P 600 Value 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 Target Small Capitalization Value T 24.02 10.10 17.72 0.52 -27.45 26.69 23.63 -0.48 14.14 35.87 S&P 600 Value 23.25 6.45 19.57 -5.54 -29.51 22.85 24.72 -1.38 18.21 39.98 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 20 9 0 0 20 40 60 80 100 120 140 160 2 18 8 Down Mkt Capture Ratio, % 16 1 7 Morningstar SmallCap Value Universe Target Small Capitalization Value T Total Annualized StdDev, % Excess Annualized StdDev, % 14 0 6 S&P 600 Value 12 Sharpe Ratio -1 5 Alpha, % 1 10 -2 4 8 Return vs. Risk -3 3 6 Jan-11 - Dec-13 -4 2 25 4 -5 2 1 Total Annualized Return, % 20 -6 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 15 Target Small Capitalization Value T S&P 600 Value MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Target Small Capitalization Value T -0.18 0.89 96.39 1.06 14.68 3.30 5 S&P 600 Value 0.00 1.00 100.00 1.09 16.17 0.00 Universe(5%) 2.19 1.13 98.06 1.20 19.06 8.89 0 0 5 10 15 20 25 Universe(25%) -0.51 1.04 96.69 1.02 17.38 5.03 Total Annualized StdDev, % Universe(Median) -1.82 0.96 95.10 0.95 15.96 4.13 Universe(75%) -2.77 0.92 92.58 0.88 15.08 3.10 Morningstar SmallCap Value Universe Target Small Capitalization Value T Universe(95%) -5.34 0.67 84.68 0.75 12.63 2.28 Cash S&P 600 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 38

Quarterly Investment Monitor Data as of 12/31/2013 American Funds New Perspective R6 5.86 1.94 Portfolio Information Investment Strategy Summary % Cash Ticker RNPGX % US Stocks Morningstar Category World Stock % Bonds The investment seeks long-term growth of capital; future income is a secondary objective. 44.02 Avg Mkt Cap $MM 49207.51 % Non-US Stocks The fund seeks to take advantage of investment opportunities generated by changes in Cat Med Mkt Cap $MM 41694.29 international trade patterns and economic and political relationships by investing in % Pref Net Assets $MM 55065.83 common stocks of companies located around the world. In pursuing its primary % Conv Turnover Ratio 30.00 investment objective, it invests primarily in common stocks that the investment adviser % Other % Assets in Top 10 Holdings 18.28 believes have the potential for growth. In pursuing its secondary objective, the fund % Non-US Bonds Total Number of Holdings 285.00 invests in common stocks of companies with the potential to pay dividends in the future. 47.96 Manager Name Gregg E. Ireland _______________________________________________________________________ Manager Tenure 21.10 __ Fund Incept Date 03/13/1973 Prospectus Exp Ratio 0.45 Portfolio Region Portfolio Structure Phone Number 800-421-4225 Performance vs. Peer Group % United States 47.86 % Cash 5.86 40 % Canada 1.93 % US Stocks 44.02 % Latin America 0.52 % Bonds 0.22 35 % United Kingdom 9.33 % Non-US Stocks 47.96 % Eurozone 14.90 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 10.49 % Conv 0.00 Mstar Rating Total Annualized Return, % 30 % Europe - Emerging 0.00 % Other 1.94 3 Year Mstar Rating % Africa 2.45 % Non-US Bonds 0.00 % Rank Cat 3 Yr 21 % Middle East 0.00 5 Year Mstar Rating 25 % Japan 7.00 % Rank Cat 5 Yr 26 % Australasia 0.94 10 Year Mstar Rating 20 % Asia - Developed 3.84 % Rank Cat 10 Yr 18 % Asia - Emerging 0.75 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 3 180 10 % Basic Materials 6.13 Avg Eff Duration NA % Communication Services 3.08 Effective Maturity NA % Consumer Cyclical 18.75 Avg Credit Quality NA 160 5 % Consumer Defensive 11.25 AAA NA % Healthcare 15.08 AA NA 140 0 % Industrials 11.65 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 13.18 BB NA 2 120 5th to 25th Percentile 25th to Median % Energy 5.21 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 15.23 Below B NA 100 American Funds New Perspective R6 MSCI AC World Index ND USD % Utilities 0.44 NR/NA NA Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Novo Nordisk A/S 3.95% 1 60 American Funds New Perspective R6 8.64 27.23 27.23 12.63 17.36 Amazon.com Inc 2.55% MSCI AC World Index ND USD 7.31 22.80 22.80 9.73 14.92 Google, Inc. Class A 1.75% 40 Universe(5%) 9.92 36.52 36.52 14.72 20.90 Naspers Ltd 1.63% Universe(25%) 8.55 29.91 29.91 12.67 17.22 ASML Holding NV 1.61% 20 Universe(Median) 7.70 25.94 25.94 10.94 15.22 Home Depot, Inc. 1.57% Universe(75%) 6.28 19.71 19.71 8.36 13.40 Bayer AG 1.52% Universe(95%) 3.22 4.37 4.37 0.45 9.49 CME Group, Inc. Class A 1.26% 0 0 Burberry Group PLC 1.22% Prospectus Exp Ratio Turnover Ratio Delta Air Lines Inc 1.22% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 39

Quarterly Investment Monitor Data as of 12/31/2013 American Funds New Perspective R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -40 Up/Down Market Capture Ratio Jan-11 - Dec-13 140 -60 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 120 Up Mkt Capture Ratio, % American Funds New Perspective R6 MSCI AC World Index ND USD 100 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 American Funds New Perspective R6 14.27 11.28 19.87 16.03 -37.83 37.72 13.11 -7.33 21.19 27.23 MSCI AC World Index ND USD 15.23 10.84 20.95 11.66 -42.20 34.63 12.67 -7.35 16.13 22.80 40 20 0 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 6 2 20 12 -20 0 25 50 75 100 125 150 175 200 225 18 4 Down Mkt Capture Ratio, % 10 16 2 Morningstar World Stock Universe American Funds New Perspective R6 Total Annualized StdDev, % Excess Annualized StdDev, % 14 8 MSCI AC World Index ND USD 0 12 Alpha, % Sharpe Ratio -2 1 10 6 8 Return vs. Risk -4 4 6 Jan-11 - Dec-13 -6 20 4 2 15 -8 2 Total Annualized Return, % 10 -10 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 0 American Funds New Perspective R6 MSCI AC World Index ND USD -5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -15 American Funds New Perspective R6 3.17 0.94 96.71 0.95 13.49 2.60 -20 MSCI AC World Index ND USD 0.00 1.00 100.00 0.72 14.14 0.00 -25 Universe(5%) 5.95 1.19 96.98 1.21 18.05 11.03 -30 0 5 10 15 20 25 30 Universe(25%) 3.35 1.09 94.92 0.93 16.16 6.50 Total Annualized StdDev, % Universe(Median) 1.30 1.00 92.25 0.77 14.93 4.88 Universe(75%) -1.06 0.88 83.06 0.64 13.35 3.62 Morningstar World Stock Universe American Funds New Perspective R6 Universe(95%) -9.98 0.57 59.31 0.11 9.82 2.50 Cash MSCI AC World Index ND USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 40

Quarterly Investment Monitor Data as of 12/31/2013 Harding Loevner Global Equity Inst 2.19 Portfolio Information Investment Strategy Summary % Cash Ticker HLMVX % US Stocks 49.62 Morningstar Category World Stock % Bonds The investment seeks long-term capital appreciation. The fund invests in companies based Avg Mkt Cap $MM 37090.42 % Non-US Stocks in the U.S. and other developed markets, as well as in emerging and frontier markets. It Cat Med Mkt Cap $MM 41694.29 invests at least 80% of net assets in common stocks, preferred stock, rights and warrants % Pref Net Assets $MM 665.89 issued by companies that are based both inside and outside the United States, securities % Conv Turnover Ratio 13.00 convertible into such securities and investment companies that invest in the types of % Other % Assets in Top 10 Holdings 26.31 securities in which the fund would normally invest. The fund normally holds 35-75 % Non-US Bonds Total Number of Holdings 69.00 investments across at least 15 countries. 48.20 Manager Name Ferrill Roll _______________________________________________________________________ Manager Tenure 12.92 __ Fund Incept Date 11/29/1996 Prospectus Exp Ratio 0.95 Portfolio Region Portfolio Structure Phone Number 877-435-8105 Performance vs. Peer Group % United States 60.85 % Cash 2.19 40 % Canada 0.00 % US Stocks 49.62 % Latin America 1.02 % Bonds 0.00 35 % United Kingdom 8.00 % Non-US Stocks 48.20 % Eurozone 5.93 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 6.09 % Conv 0.00 Mstar Rating Total Annualized Return, % 30 % Europe - Emerging 0.79 % Other 0.00 3 Year Mstar Rating % Africa 1.56 % Non-US Bonds 0.00 % Rank Cat 3 Yr 75 % Middle East 0.00 5 Year Mstar Rating 25 % Japan 10.01 % Rank Cat 5 Yr 44 % Australasia 1.00 10 Year Mstar Rating 20 % Asia - Developed 2.54 % Rank Cat 10 Yr 36 % Asia - Emerging 2.19 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 3 180 10 % Basic Materials 6.04 Avg Eff Duration NA % Communication Services 0.27 Effective Maturity NA % Consumer Cyclical 17.57 Avg Credit Quality NA 160 5 % Consumer Defensive 13.28 AAA NA % Healthcare 9.42 AA NA 140 0 % Industrials 8.33 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 18.97 BB NA 2 120 5th to 25th Percentile 25th to Median % Energy 7.22 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 18.89 Below B NA 100 Harding Loevner Global Equity Inst MSCI AC World Index ND USD % Utilities 0.00 NR/NA NA Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Wells Fargo & Co 3.78% 1 60 Harding Loevner Global Equity Inst 7.22 20.27 20.27 9.03 15.99 Google, Inc. Class A 2.97% MSCI AC World Index ND USD 7.31 22.80 22.80 9.73 14.92 eBay Inc 2.84% 40 Universe(5%) 9.92 36.52 36.52 14.72 20.90 Schlumberger NV 2.79% Universe(25%) 8.55 29.91 29.91 12.67 17.22 Nestle SA ADR 2.70% 20 Universe(Median) 7.70 25.94 25.94 10.94 15.22 Unicharm Corp 2.34% Universe(75%) 6.28 19.71 19.71 8.36 13.40 Dassault Systemes 2.25% Universe(95%) 3.22 4.37 4.37 0.45 9.49 Nike, Inc. Class B 2.24% 0 0 Coach, Inc. 2.23% Prospectus Exp Ratio Turnover Ratio Fanuc Corp 2.17% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 41

Quarterly Investment Monitor Data as of 12/31/2013 Harding Loevner Global Equity Inst Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -40 Up/Down Market Capture Ratio Jan-11 - Dec-13 140 -60 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 120 Up Mkt Capture Ratio, % Harding Loevner Global Equity Inst MSCI AC World Index ND USD 100 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 Harding Loevner Global Equity Inst 7.61 16.65 17.84 16.39 -38.29 40.16 15.55 -8.22 17.42 20.27 MSCI AC World Index ND USD 15.23 10.84 20.95 11.66 -42.20 34.63 12.67 -7.35 16.13 22.80 40 20 0 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 6 2 20 12 -20 0 25 50 75 100 125 150 175 200 225 18 4 Down Mkt Capture Ratio, % 10 16 2 Morningstar World Stock Universe Harding Loevner Global Equity Inst Total Annualized StdDev, % Excess Annualized StdDev, % 14 8 MSCI AC World Index ND USD 0 12 Alpha, % Sharpe Ratio -2 1 10 6 8 Return vs. Risk -4 4 6 Jan-11 - Dec-13 -6 20 4 2 15 -8 2 Total Annualized Return, % 10 -10 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 0 Harding Loevner Global Equity Inst MSCI AC World Index ND USD -5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -15 Harding Loevner Global Equity Inst -0.22 0.96 93.49 0.68 13.97 3.62 -20 MSCI AC World Index ND USD 0.00 1.00 100.00 0.72 14.14 0.00 -25 Universe(5%) 5.95 1.19 96.98 1.21 18.05 11.03 -30 0 5 10 15 20 25 30 Universe(25%) 3.35 1.09 94.92 0.93 16.16 6.50 Total Annualized StdDev, % Universe(Median) 1.30 1.00 92.25 0.77 14.93 4.88 Universe(75%) -1.06 0.88 83.06 0.64 13.35 3.62 Morningstar World Stock Universe Harding Loevner Global Equity Inst Universe(95%) -9.98 0.57 59.31 0.11 9.82 2.50 Cash MSCI AC World Index ND USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 42

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Emerging Mkts Stock Idx I 1.952.43 Portfolio Information Investment Strategy Summary % Cash Ticker VEMIX % US Stocks Morningstar Category Diversified Emerging Mkts % Bonds The investment seeks to track the performance of a benchmark index that measures the Avg Mkt Cap $MM 18766.32 % Non-US Stocks investment return of stocks issued by companies located in emerging market countries. Cat Med Mkt Cap $MM 19669.80 The fund employs an indexing investment approach by investing substantially all % Pref Net Assets $MM 62378.27 (approximately 95%) of its assets in the common stocks included in the FTSE Emerging % Conv Turnover Ratio 26.00 Index, while employing a form of sampling to reduce risk. The FTSE Emerging Index % Other % Assets in Top 10 Holdings 13.75 includes approximately 851 common stocks of companies located in emerging markets % Non-US Bonds Total Number of Holdings 916.00 around the world. As of May 31, 2013, the largest markets covered in the index were Manager Name Michael Perre China, Brazil, Taiwan, and India. 94.95 Manager Tenure 5.34 _______________________________________________________________________ Fund Incept Date 05/04/1994 __ Prospectus Exp Ratio 0.12 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States 0.24 % Cash 0.44 20 % Canada 0.00 % US Stocks 0.23 % Latin America 20.06 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 94.95 15 % Eurozone 0.05 % Pref 2.43 Portfolio Ratings % Europe - ex Euro 0.06 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 10.22 % Other 1.95 3 Year Mstar Rating % Africa 9.69 % Non-US Bonds 0.00 % Rank Cat 3 Yr 63 10 % Middle East 0.62 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 50 % Australasia 0.00 10 Year Mstar Rating 5 % Asia - Developed 13.76 % Rank Cat 10 Yr 39 % Asia - Emerging 45.31 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 3 180 % Basic Materials 9.28 Avg Eff Duration NA % Communication Services 10.69 Effective Maturity NA -5 % Consumer Cyclical 7.92 Avg Credit Quality NA 160 % Consumer Defensive 9.07 AAA NA % Healthcare 1.63 AA NA 140 -10 % Industrials 5.16 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 2.55 BBB NA % Technology 11.80 BB NA 2 120 5th to 25th Percentile 25th to Median % Energy 11.36 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 26.66 Below B NA 100 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD % Utilities 3.90 NR/NA NA Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years China Construction Bank Corp H Shares 1.79% 1 60 Vanguard Emerging Mkts Stock Idx I 1.61 -4.99 -4.99 -2.77 14.06 China Mobile Ltd. 1.73% FTSE Emerging NR USD 1.55 -3.79 -3.79 -2.93 14.78 Tencent Holdings Ltd. 1.62% 40 Universe(5%) 5.12 8.21 8.21 2.06 19.67 Industrial And Commercial Bank Of China Ltd. H Shares 1.59% Universe(25%) 3.68 0.33 0.33 -0.57 15.81 Taiwan Semiconductor Manufacturing Co Ltd 1.29% 20 Universe(Median) 2.35 -2.54 -2.54 -2.17 14.38 Taiwan Semiconductor Manufacturing Co Ltd ADR 1.28% Universe(75%) 1.38 -4.76 -4.76 -3.52 13.14 Naspers Ltd 1.14% Universe(95%) 0.11 -7.02 -7.02 -7.01 10.54 America Movil, S.A.B. de C.V. 1.13% 0 0 Bank Of China Ltd. H Shares 1.12% Prospectus Exp Ratio Turnover Ratio Mtn Group Limited 1.07% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 43

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard Emerging Mkts Stock Idx I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 120 0 100 25 Total Return Rank, % 80 60 50 Total Return, % 40 75 20 0 100 -20 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -40 Up/Down Market Capture Ratio -60 Jan-11 - Dec-13 225 -80 200 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Up Mkt Capture Ratio, % 175 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD 150 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 125 Vanguard Emerging Mkts Stock Idx I 26.24 32.35 29.57 39.15 -52.74 76.35 19.06 -18.63 18.90 -4.99 100 FTSE Emerging NR USD 27.58 34.70 32.84 39.41 -53.03 82.15 19.60 -19.15 17.58 -3.79 75 50 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 25 9 0 0 20 40 60 80 100 120 140 160 180 200 4 8 Down Mkt Capture Ratio, % 0.1 20 3 7 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Total Annualized StdDev, % Excess Annualized StdDev, % 2 6 FTSE Emerging NR USD 0.0 15 Sharpe Ratio 1 5 Alpha, % 0 4 -0.1 10 Return vs. Risk -1 3 Jan-11 - Dec-13 -2 2 6 -0.2 5 4 -3 1 2 Total Annualized Return, % 0 -4 -0.3 0 0 -2 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile -4 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD -6 -8 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -12 Vanguard Emerging Mkts Stock Idx I 0.31 1.01 96.96 -0.05 19.65 3.44 -14 FTSE Emerging NR USD 0.00 1.00 100.00 -0.07 19.07 0.00 -16 Universe(5%) 4.96 1.14 96.85 0.20 22.29 8.40 -18 0 5 10 15 20 25 30 35 40 45 Universe(25%) 2.63 1.03 95.68 0.07 20.23 5.76 Total Annualized StdDev, % Universe(Median) 0.69 0.99 94.07 -0.03 19.39 4.83 Universe(75%) -0.36 0.93 92.46 -0.08 18.35 4.20 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Universe(95%) -3.91 0.84 86.34 -0.27 16.66 3.48 Cash FTSE Emerging NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 44

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard REIT Index I Portfolio Information Investment Strategy Summary % Cash Ticker VGSNX % US Stocks Morningstar Category Real Estate % Bonds The investment seeks to provide a high level of income and moderate long-term capital Avg Mkt Cap $MM 7812.60 % Non-US Stocks appreciation by tracking the performance of a benchmark index that measures the Cat Med Mkt Cap $MM 10375.77 performance of publicly traded equity REITs. The fund employs an indexing investment % Pref Net Assets $MM 33536.77 approach designed to track the performance of the MSCI US REIT Index. The index is % Conv Turnover Ratio 9.00 composed of stocks of publicly traded equity real estate investment trusts (known as % Other % Assets in Top 10 Holdings 40.06 REITs). The fund attempts to replicate the index by investing all, or substantially all, of its % Non-US Bonds Total Number of Holdings 133.00 assets in the stocks that make up the index, holding each stock in approximately the same Manager Name Gerard C. O'Reilly proportion as its weighting in the index. Manager Tenure 17.65 99.04 _______________________________________________________________________ Fund Incept Date 05/13/1996 __ Prospectus Exp Ratio 0.08 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States 100.00 % Cash 0.17 20 % Canada 0.00 % US Stocks 99.04 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 0.00 15 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.79 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 16 10 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 21 % Australasia 0.00 10 Year Mstar Rating 5 % Asia - Developed 0.00 % Rank Cat 10 Yr 33 % Asia - Emerging 0.00 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 3 800 % Basic Materials 0.00 Avg Eff Duration NA % Communication Services 0.00 Effective Maturity NA -5 % Consumer Cyclical 0.00 Avg Credit Quality NA 700 % Consumer Defensive 0.00 AAA NA % Healthcare 0.00 AA NA -10 % Industrials 1.26 A NA 600 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 98.74 BBB NA % Technology 0.00 BB NA 2 500 5th to 25th Percentile 25th to Median % Energy 0.00 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 0.00 Below B NA Vanguard REIT Index I MSCI US REIT NR USD % Utilities 0.00 NR/NA NA 400 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings 300 Months Date Year Years Years Simon Property Group Inc 9.34% 1 Vanguard REIT Index I -0.68 2.48 2.48 9.43 16.93 Public Storage 4.49% 200 MSCI US REIT NR USD -1.01 1.26 1.26 8.22 15.24 Prologis Inc 3.80% Universe(5%) 2.60 6.21 6.21 5.64 12.54 Equity Residential 3.54% Universe(25%) 2.06 2.94 2.94 3.92 9.88 HCP Inc 3.37% 100 Universe(Median) 1.21 1.12 1.12 2.71 8.82 Ventas Inc 3.35% Universe(75%) 0.82 -0.91 -0.91 1.76 5.11 Health Care REIT, Inc. 3.22% Universe(95%) -2.50 -5.44 -5.44 0.84 2.12 Boston Properties Inc 3.05% 0 0 Vornado Realty Trust 2.97% Prospectus Exp Ratio Turnover Ratio AvalonBay Communities Inc 2.93% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 45

Quarterly Investment Monitor Data as of 12/31/2013 Vanguard REIT Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 50 20 Total Return, % 10 75 0 100 -10 Jan-07 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 -20 Up/Down Market Capture Ratio -30 Jan-11 - Dec-13 120 -40 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 100 Up Mkt Capture Ratio, % Vanguard REIT Index I MSCI US REIT NR USD 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 Vanguard REIT Index I 30.93 12.05 35.15 -16.38 -36.95 29.76 28.56 8.70 17.65 2.48 MSCI US REIT NR USD NA NA 34.18 -17.84 -39.05 26.27 26.97 7.48 16.47 1.26 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 2 18 18 0 -20 0 20 40 60 80 100 16 16 Down Mkt Capture Ratio, % 3 14 14 Morningstar Real Estate Universe Vanguard REIT Index I Total Annualized StdDev, % Excess Annualized StdDev, % 12 12 MSCI US REIT NR USD 2 Sharpe Ratio 10 10 Alpha, % 1 8 8 1 Return vs. Risk 6 6 Jan-11 - Dec-13 4 4 10 0 9 2 2 Total Annualized Return, % 8 -1 0 0 0 7 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 6 Vanguard REIT Index I MSCI US REIT NR USD 5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 4 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 3 Vanguard REIT Index I 1.13 1.00 99.98 0.62 16.70 0.21 2 MSCI US REIT NR USD 0.00 1.00 100.00 0.55 16.73 0.00 1 Universe(5%) 3.84 0.25 62.31 1.81 6.18 17.24 0 0 2 4 6 8 10 12 14 16 18 Universe(25%) 2.68 0.18 46.72 1.17 5.02 16.11 Total Annualized StdDev, % Universe(Median) 1.67 0.10 38.61 0.81 3.74 15.39 Universe(75%) 0.94 0.06 11.73 0.50 2.83 14.03 Morningstar Real Estate Universe Vanguard REIT Index I Universe(95%) -0.46 0.01 2.75 0.22 1.58 12.97 Cash MSCI US REIT NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 46

Quarterly Investment Monitor Data as of 12/31/2013 Glossary Alpha (3 Yr) % Assets in Top 10 Holdings Alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured The aggregate assets, expressed as a percentage, of the fund's top 10 portfolio holdings. This figure is meant to be a measure of portfolio risk. by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative alpha Specifically, the higher the percentage, the more concentrated the fund is in a few companies or issues, and the more the fund is susceptible to indicates the portfolio has underperformed, given the expectations established by beta. the market fluctuations in these few holdings. The figure is calculated from the most recent available fund holdings. Average Effective Duration Price/Book Ratio TTM A measure of a fund's interest-rate sensitivity--the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. The weighted average of the price/book ratios of all the stocks in a fund’s portfolio. The P/B ratio of a company is calculated by dividing the Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while market price of its stock by the company’s per-share book value. Stocks with negative book values are excluded from this calculation. In theory, shorter maturities and higher coupons shorten duration. The relationship between funds with different durations is straightforward: A fund a high P/B ratio indicates that the price of the stock exceeds the actual worth of the company's assets, while a low P/B ratio indicates that the with a duration of 10 years is twice as volatile as a fund with a five-year duration. Morningstar prints an average effective duration statistic stock is a bargain. that incorporates call, put, and prepayment possibilities. Price/Earnings Ratio TTM Average Effective Maturity The weighted average of the price/earnings ratios of the stocks in a fund’s portfolio. The P/E ratio of a stock is calculated by dividing the current Average effective maturity is a weighted average of all the effective maturities of the bonds in a portfolio. Effective maturity takes into price of the stock by its trailing 12 months’ earnings per share. In computing the average, Morningstar weights each portfolio holding by the consideration mortgage prepayments, puts, calls, adjustable coupons, and other features of individual bonds and is thus a more accurate percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund’s final P/E. measure of interest-rate sensitivity. Longer-maturity funds are generally considered more interest-rate sensitive than their shorter counterparts. R-Squared Beta Reflects the percentage of a fund’s movements that can be explained by movements in its benchmark index. An R-squared of 100 indicates that all movements of a fund can be explained by movements in the index. Thus, index funds that invest only in S&P 500 stocks will have an A measure of a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. Morningstar calculates beta by R-squared very close to 100. Conversely, a low R-squared indicates that very few of the fund’s movements can be explained by movements in its comparing a fund’s excess return over Treasury bills to the market's excess return over Treasury bills, so a beta of 1.10 shows that the benchmark index. An R-squared measure of 35, for example, means that only 35% of the fund’s movements can be explained by movements in fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other factors the benchmark index. remain constant. Conversely, a beta of 0.85 indicates that the fund’s excess return is expected to perform 15% worse than the market’s excess return during up markets and 15% better during down markets. Sharpe Ratio The Morningstar Rating The Sharpe Ratio is a risk-adjusted measure developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the portfolio’s historical risk-adjusted performance. It Commonly called the Star Rating, is a measure of a fund's risk-adjusted return, relative to funds in its category. Funds are rated from one can be used to compare two portfolios directly on how much excess return each portfolio achieved for a certain level of risk. to five stars, with the best performers receiving five stars and the worst performers receiving a single star. Standard Deviation Risk-adjusted return is calculated by subtracting a risk penalty from each fund total return, after accounting for all loads, sales charges, and redemption fees. The risk penalty is determined by the amount of variation in the fund's monthly return, with emphasis on downward Standard deviation is the statistical measurement of dispersion about an average, which depicts how widely a stock or portfolio’s returns varied variation. The greater the variation, the larger the penalty. Funds are ranked within their categories and stars are assigned as follows: Top over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that is most 10% five stars; Next 22.5% four stars; Middle 35% three stars; Next 22.5% two stars; Bottom 10% one star. likely for a given investment. When a stock or portfolio has a high standard deviation, the predicted range of performance is wide, implying greater volatility. Audited Expense Ratio Total Number of Holdings The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV . Sales charges are not The total number of different holdings of a fund. This figure is meant to be a measure of portfolio risk. Specifically, the lower the figure, the more included in the expense ratio. concentrated the fund is in a few companies or issues, and the more the fund is susceptible to the market fluctuations in these few holdings. This figure also provides a context for the importance of % assets in top 10 holdings. The figure is calculated from the most recent available fund Geometric Average Market Capitalization holdings. It does not include a fund’s short positions. Morningstar defines the overall "size" of a stock fund's portfolio as the geometric mean of the market capitalization for all of the stocks it Total Return owns. It's calculated by raising the market capitalization of each stock to a power equal to that stock's stake in the portfolio. The resulting numbers are multiplied together to produce the geometric mean of the market caps of the stocks in the portfolio, which is reported as Expressed in percentage terms, Morningstar’s calculation of total return is determined each month by taking the change in monthly net asset average market capitalization. value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAV. Reinvestments are made using This number is different from the fund's median market cap--the capitalization of the median stock in its portfolio. The geometric mean the actual reinvestment NAV, and daily payoffs are reinvested monthly. better identifies the portfolio's "center of gravity." That is, it provides more accurate insight into how market trends (as defined by capitalization) might affect the portfolio. Turnover Ratio Net Assets This is a measure of the fund’s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily suggest that The month-end net assets of the mutual fund, recorded in millions of dollars. Net-asset figures are useful in gauging a fund’s size, agility, all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio’s and popularity. They help determine whether a small company fund, for example, can remain in its investment-objective category if its holdings that have changed over the past year. asset base reaches an ungainly size. 12-Month Yield Also known as a distribution yield, Morningstar computes this figure by summing the trailing 12-month’s income distributions and dividing the sum by the last month’s ending NAV, plus any capital gains distributed over the same period. Income refers only to interest payments from fixed-income securities and dividend payoffs from common stocks. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 47

Quarterly Investment Monitor Data as of 12/31/2013 Disclaimer This Milliman work product was prepared solely for the internal business use of City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45. Milliman's work may not be provided to third parties without Milliman's prior written consent. The analysis in this report was prepared utilizing data from third parties and other sources including but not limited to internal computer software and databases. Reasonable care has been taken to assure the accuracy of the data contained herein, and comments are objectively stated and are based on facts gathered in good faith. These reports do not constitute investment advice with respect to the sale or disposition of individual securities. Unless explicitly stated in your Service Agreement, there should be no reliance on Milliman services to provide analysis or reporting on a daily basis, the changes to manager rankings, ratings or opinions thereon and are not intended to monitor investment manager compliance with individual security selection criteria, limits on security selection, and/or prohibitions to the holding of certain securities or security types. The One Year, Three Year, Five Year, and Ten Year rates of return are time-weighted annual rates. The One Month, Three Month, and Year to Date rates of return are rates for the period indicated. All returns include fund internal expenses, except sales charges, if any. The rates of return shown are for the mutual funds in which the retirement program participates, not for the plan specifically. Returns credited to individual accounts will vary due to the timing of contributions, transfers, and withdrawals. Past performance is no guarantee of future results. Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request. Milliman disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 48

Competitor Analysis Report Prepared by Milliman, Inc.

Competitor Analysis | Foreign Large Growth Performance Relative to Peer Group As of Date: 12/31/2013 Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth 26.00 24.00 22.00 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 Return 4.00 2.00 YTD 1 year 3 years 5 years 10 years Harding Loevner Global Equity Inst MFS® Instl International Equity Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD US OE Foreign Large Growth Trailing Peer Group Performance As of Date: 12/31/2013 YTD % rank 1 year % rank 3 years % rank 5 years % rank 10 years % rank Harding Loevner Global Equity Inst 20.27 39 20.27 39 9.03 27 15.99 23 8.35 29 MFS® Instl International Equity 18.56 51 18.56 51 9.53 19 14.19 38 8.99 13 Oppenheimer International Growth Y 25.46 7 25.46 7 12.39 1 17.79 7 10.05 1 MSCI EAFE Large Growth NR USD 22.28 25 22.28 25 7.98 42 12.57 68 7.03 48 Morningstar Foreign Large Growth AW 17.86 55 17.86 55 5.08 80 12.72 66 6.72 55 Median 18.69 18.69 7.27 13.59 6.90 Page 1 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth Calendar Year Performance Relative to Peer Group Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth 60.0 55.0 50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 Return -15.0 -20.0 2013 2012 2011 2010 2009 Harding Loevner Global Equity Inst MFS® Instl International Equity Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD US OE Foreign Large Growth Calendar Year Returns Data Point: Return Peer Group: Open End Funds - U.S. - Foreign Large Growth 2013 2012 2011 2010 2009 Harding Loevner Global Equity Inst 20.27 17.42 -8.22 15.55 40.16 MFS® Instl International Equity 18.56 22.55 -9.55 10.97 33.12 Oppenheimer International Growth Y 25.46 22.10 -7.31 15.35 38.44 MSCI EAFE Large Growth NR USD 22.28 17.06 -12.04 11.48 28.81 US OE Foreign Large Growth 17.92 18.09 -12.63 14.20 39.17 Median 18.69 18.60 -12.16 13.81 35.77 Page 2 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth 36 Month Rolling Return Quartiles Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth 1st to 25th Percentile 26th to Median 51st to 75th Percentile 76th to 100th Percentile 0.0 25.0 50.0 Return Rank % 75.0 100.0 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 2012 2013 Harding Loevner Global Equity Inst MFS® Instl International Equity Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD US OE Foreign Large Growth 60 Month Rolling Return Quartiles Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth Rolling Window: 5 Years 1 Month shift 1st to 25th Percentile 26th to Median 51st to 75th Percentile 76th to 100th Percentile 0.0 25.0 50.0 75.0 Return 100.0 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 2012 2013 Page 3 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth 3-Year Risk-Reward 5-Year Risk-Reward Time Period: 1/1/2011 to 12/31/2013 Time Period: 1/1/2009 to 12/31/2013 15.00 Harding Loevner Global Equity Inst 21.00 Harding Loevner Global Equity Inst MFS® Instl International Equity MFS® Instl International Equity Oppenheimer International Growth Y Oppenheimer International Growth Y 18.00 MSCI EAFE Large Growth NR USD MSCI EAFE Large Growth NR USD 12.00 US OE Foreign Large Growth US OE Foreign Large Growth 15.00 9.00 12.00 9.00 6.00 6.00 3.00 3.00 Return Return 0.00 0.00 0.00 3.00 6.00 9.00 12.00 15.00 18.00 21.00 0.00 4.00 8.00 12.00 16.00 20.00 24.00 Std Dev Std Dev 5-Year Risk Time Period: 1/1/2009 to 12/31/2013 Peer Group: Open End Funds - U.S. - Foreign Large Growth Loss Tracking Std Dev Std R2 Error Dev Harding Loevner Global Equity Inst 16.70 10.18 5.60 90.72 MFS® Instl International Equity 19.74 13.41 4.01 96.19 Oppenheimer International Growth Y 18.14 12.27 4.23 94.67 MSCI EAFE Large Growth NR USD 18.25 13.25 0.00 100.00 US OE Foreign Large Growth 18.89 12.32 3.59 96.42 Median 18.70 12.20 4.68 94.63 Page 4 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth 3-Year Upside-Downside Capture 5-Year Upside-Downside Capture Time Period: 1/1/2011 to 12/31/2013 Time Period: 1/1/2009 to 12/31/2013 120.00 Harding Loevner Global Equity Inst 120.00 Harding Loevner Global Equity Inst MFS® Instl International Equity MFS® Instl International Equity Oppenheimer International Growth Y Oppenheimer International Growth Y 100.00 MSCI EAFE Large Growth NR USD 100.00 MSCI EAFE Large Growth NR USD US OE Foreign Large Growth US OE Foreign Large Growth 80.00 80.00 60.00 60.00 40.00 40.00 Up Capture Ratio Up Capture Ratio 20.00 20.00 0.00 0.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00 0.00 20.00 40.00 60.00 80.00 100.00 120.00 Down Capture Ratio Down Capture Ratio 5-Year Market Performance Time Period: 1/1/2009 to 12/31/2013 Up Down Batting Best Worst Capture Capture Average Month Month Ratio Ratio Harding Loevner Global Equity Inst 51.67 94.19 75.29 10.71 -9.29 MFS® Instl International Equity 55.00 107.69 104.60 12.14 -11.25 Oppenheimer International Growth Y 58.33 105.60 85.21 11.35 -11.49 MSCI EAFE Large Growth NR USD 100.00 100.00 100.00 11.84 -11.17 US OE Foreign Large Growth 53.33 102.28 96.58 13.84 -12.28 Median 51.67 101.47 94.93 12.65 -11.90 Page 5 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth Sharpe Ratio vs. Peer Group As of Date: 12/31/2013 Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth Harding Loevner Global Equity Inst 1.0 MFS® Instl International Equity 0.9 Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD 0.8 US OE Foreign Large Growth 0.7 0.6 0.5 Sharpe Ratio 0.4 0.3 0.2 3 years 5 years 10 years Alpha vs. Peer Group As of Date: 12/31/2013 Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth Harding Loevner Global Equity Inst 5.0 MFS® Instl International Equity 4.0 Oppenheimer International Growth Y 3.0 MSCI EAFE Large Growth NR USD 2.0 US OE Foreign Large Growth 1.0 0.0 -1.0 -2.0 -3.0 Alpha -4.0 -5.0 3 years 5 years 10 years Beta vs. Peer Group As of Date: 12/31/2013 Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth Harding Loevner Global Equity Inst 1.2 MFS® Instl International Equity 1.2 Oppenheimer International Growth Y 1.1 MSCI EAFE Large Growth NR USD US OE Foreign Large Growth 1.1 1.0 1.0 0.9 0.9 0.8 Beta 0.8 3 years 5 years 10 years Page 6 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth Holdings-Based Style Harding Loevner Global Equity Inst 12/31/2013 MFS® Instl International Equity 11/30/2013 Giant Oppenheimer International Growth Y 12/31/2013 MSCI EAFE Large Growth NR USD 12/31/2013 US OE Foreign Large Growth 12/31/2013 Large Mid Small Micro Deep-Val Core-Val Core Core-Grth High-Grth Returns-Based Style Time Period: 1/1/2009 to 12/31/2013 Harding Loevner Global Equity Inst MFS® Instl International Equity Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD MSCI Brazil NR USD MSCI China NR USD US OE Foreign Large Growth MSCI India NR USD MSCI Russia NR USD Page 7 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth Asset Allocation 100.0 97.1 95.9 91.1 92.5 90.0 80.0 70.0 60.0 56.0 50.0 40.4 40.0 30.0 20.0 10.0 3.6 4.7 4.0 3.8 1.4 1.5 1.6 3.0 0.0 0.3 1.2 0.1 0.0 0.0 0.0 0.0 1.3 0.0 0.0 0.0 0.0 0.5 0.0 0.0 0.0 Asset Alloc Cash % (Net) Asset Alloc US Equity % (Net) Asset Alloc Non-US Equity % Asset Alloc US Bond % (Net) Asset Alloc Non-US Bond % Asset Alloc Other % (Net) (Net) (Net) Harding Loevner Global Equity Inst MFS® Instl International Equity Oppenheimer International Growth Y MSCI EM NR USD US OE Diversified Emerging Mkts GICS Sectors Portfolio Date: 9/30/2013 Consumer Consumer Information Telecom Energy % Materials % Industrials % Healthcare % Financials % Utilities % Discretionary % Staples % Technology % Services % Harding Loevner Global Equity Inst 7.22 6.04 10.19 14.08 13.28 9.42 18.89 20.59 0.27 0.00 MFS® Instl International Equity 3.98 9.48 11.73 16.72 15.77 8.85 20.59 10.62 1.36 0.92 Oppenheimer International Growth Y 5.31 5.02 20.40 18.27 12.30 9.77 5.99 17.99 4.96 0.00 MSCI EM NR USD US OE Diversified Emerging Mkts 10.28 7.81 6.63 9.85 12.34 2.30 25.54 14.67 8.28 2.30 Page 8 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth Regional Exposure 60.0 58.1 54.4 50.0 47.1 40.0 36.5 34.1 28.3 28.7 30.0 23.0 21.5 16.5 17.6 15.9 20.0 12.5 10.1 11.0 10.0 7.9 7.8 7.7 8.0 7.4 6.1 5.1 4.2 3.1 3.1 2.2 2.7 2.3 2.5 2.0 2.8 1.3 0.6 0.7 0.6 0.1 0.5 1.5 1.5 0.7 1.2 1.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.0 Equity Region Equity Region Equity Region Asia Equity Region Asia Equity Region Equity Region Equity Region Equity Region Latin Equity Region Equity Region Africa/Middle East Australasia % dev % (Long emrg % (Long Europe dev % Europe emrg % Japan % (Long America % (Long North America % United Kingdom % % (Long Rescaled) (Long Rescaled) Rescaled) Rescaled) (Long Rescaled) (Long Rescaled) Rescaled) Rescaled) (Long Rescaled) (Long Rescaled) Harding Loevner Global Equity Inst MFS® Instl International Equity Oppenheimer International Growth Y MSCI EM NR USD US OE Diversified Emerging Mkts Holdings Statistics Portfolio Date: 9/30/2013 Equity Market Market Market Market Market Equity Equity Region Cap Cap Cap Cap Cap Region Region Not Giant % Large % Mid % Small % Micro % Developed % Emerging % Classified % Harding Loevner Global Equity Inst 48.17 27.60 24.23 0.00 0.00 94.44 5.56 0.00 MFS® Instl International Equity 63.53 33.50 2.96 0.00 0.00 95.15 4.85 0.00 Oppenheimer International Growth Y 28.59 28.64 37.99 4.77 0.02 96.38 3.62 0.00 MSCI EM NR USD 47.13 41.11 11.26 0.50 0.00 28.19 71.81 0.00 US OE Diversified Emerging Mkts 53.19 27.78 15.87 3.02 0.15 30.04 69.96 0.00 Page 9 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth Expense Ratio Relative to Peer Group Manager Tenure Relative to Peer Group Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth 2.3 Harding Loevner Global Equity Inst 18.0 Harding Loevner Global Equity Inst 2.2 MFS® Instl International Equity MFS® Instl International Equity 2.1 16.0 Oppenheimer International Growth Y Oppenheimer International Growth Y 2.0 MSCI EAFE Large Growth NR USD 14.0 MSCI EAFE Large Growth NR USD 1.9 US OE Foreign Large Growth US OE Foreign Large Growth 1.8 12.0 1.7 1.6 10.0 1.5 1.4 8.0 1.3 6.0 1.2 1.1 4.0 1.0 0.9 2.0 0.8 0.7 0.0 Expense Ratio Manager Tenure (Longest) Fund Size Relative to Peer Group Turnover Ratio Relative to Peer Group Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth Peer Group (5-95%): Open End Funds - U.S. - Foreign Large Growth 15,000,000,000.0 Harding Loevner Global Equity Inst 180.0 Harding Loevner Global Equity Inst 14,000,000,000.0 MFS® Instl International Equity MFS® Instl International Equity 13,000,000,000.0 160.0 Oppenheimer International Growth Y Oppenheimer International Growth Y 12,000,000,000.0 MSCI EAFE Large Growth NR USD 140.0 MSCI EAFE Large Growth NR USD 11,000,000,000.0 US OE Foreign Large Growth US OE Foreign Large Growth 10,000,000,000.0 120.0 9,000,000,000.0 8,000,000,000.0 100.0 7,000,000,000.0 80.0 6,000,000,000.0 5,000,000,000.0 60.0 4,000,000,000.0 3,000,000,000.0 40.0 2,000,000,000.0 20.0 1,000,000,000.0 0.0 0.0 Fund Size Turnover Ratio % Page 10 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth Snapshot Average Prospectus Morningstar Market Morningstar Net Inception Ticker Rating Cap Category Expense Date Overall (mil) Ratio (Long) Harding Loevner Global Equity Inst HLMVX US OE World Stock ÙÙÙ 0.95 38,180 11/3/2009 MFS® Instl International Equity MIEIX US OE Foreign Large Growth ÙÙÙÙ 0.74 41,496 1/30/1996 Oppenheimer International Growth Y OIGYX US OE Foreign Large Growth ÙÙÙÙÙ 0.93 14,159 9/7/2005 US OE Diversified Emerging Mkts Diversified Emerging Mkts ÙÙÙ 1.61 19,500 9/1/1989 Manager Manager Manager Advisor Subadvisor Ownership Name Level Harding Loevner Global Equity Inst Harding Loevner LP Multiple Multiple MFS® Instl International Equity Massachusetts Financial Services Co Multiple Multiple Oppenheimer International Growth Y OFI Global Asset Management OppenheimerFunds, Inc. Multiple Multiple Firm Firm % Firm % Firm % Firm % Firm % Firm Share Firm % Assets Firm Share Share Assets Manager Classes Assets Manager Average Classes Classes Manager Retention in Manager Investment Morningstar in Low in High Investment Rate 5 Average Investment Over Rating Fee Fee $500,001-$1 Year Fee $100,001-$500,000 $1 Overall Level Level million Level million Harding Loevner Global Equity Inst 94.56 0.00 30.00 40 69.69 0.00 26.37 4.11 MFS® Instl International Equity 94.04 20.80 22.63 13 36.28 7.05 40.96 3.32 Oppenheimer International Growth Y 87.64 28.62 21.85 10 13.03 11.17 61.44 3.25 US OE Diversified Emerging Mkts Page 11 of 12 Source: Morningstar Direct

Competitor Analysis | Foreign Large Growth Disclaimer This Milliman work product was prepared solely for the internal business use of Milliman clients. Milliman's work may not be provided to third parties without Milliman's prior written consent. The analysis in this report was prepared utilizing data from third parties and other sources including but not limited to internal computer software and databases. Reasonable care has been taken to assure the accuracy of the data contained herein, and comments are objectively stated and are based on facts gathered in good faith. These reports do not constitute investment advice with respect to the sale or disposition of individual securities. Unless explicitly stated in your Service Agreement, there should be no reliance on Milliman services to provide analysis or reporting on a daily basis, the changes to manager rankings, ratings or opinions thereon and are not intended to monitor investment manager compliance with individual security selection criteria, limits on security selection, and/or prohibitions to the holding of certain securities or security types. The One Year, Three Year, Five Year, and Ten Year rates of return are time- weighted annual rates. The One Month, Three Month, and Year to Date rates of return are rates for the period indicated. All returns include fund internal expenses, except sales charges, if any. The rates of return shown are for the mutual funds in which the retirement program participates, not for the plan specifically. Returns credited to individual accounts will vary due to the timing of contributions, transfers, and withdrawals. Past performance is no guarantee of future results. Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request. Milliman disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. Page 12 of 12 Source: Morningstar Direct