Anexo

OTHER POST-EMPLOYMENT BENEFITS (OPEB) AGENDA FEBRUARY 12, 2015 - 10:00 A.M. CITY HALL CONFERENCE ROOM 15 LOOCKERMAN PLAZA DOVER, DELAWARE 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. ADOPTION OF MINUTES - JOINT CIVILIAN/POLICE PENSION AND OPEB BOARD MEETING OF DECEMBER 11, 2014 2. QUARTERLY PERFORMANCE REVIEW (QUARTER ENDING DECEMBER 31, 2014) (MILLIMAN, INC.) (STAFF RECOMMENDS ACCEPTANCE OF THE REPORT) 3. DISCUSSION – WELLS FARGO BANK PROPOSED FEE CHANGES AND MAILING COST 4. ADJOURNMENT BY 10:30 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\2015\02-12-2015 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.

JOINT CIVILIAN AND POLICE PENSION AND OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARDS A Joint Meeting of the Civilian Pension, Police Pension, and Other Post-Employment Benefits (OPEB) Boards was held on December 11, 2014, at 9:02 a.m. with Mr. Mullaney, Chairman of the Police Pension Board, presiding. Members present were Mr. Anderson (arrived at 9:12 a.m.), Mr. Blakeman, Mr. Clendaniel, Mr. Koenig, Mrs. Mitchell, Police Chief Bernat, Mr. Stallings (arrived at 9:09 a.m.), Mr. Unterkofler, Mr. Hare, and Mrs. Hawkins. Mrs. Williams and Mrs. Tieman were absent. AGENDA ADDITIONS/DELETIONS By unanimous consent, the agenda was adopted. Adoption of Minutes Civilian Pension Board Meeting of August 14, 2014 Mr. Blakeman moved for approval of the minutes of the Civilian Pension Board meeting of August 14, 2014, seconded by Mr. Clendaniel and carried by a unanimous roll call vote (Anderson and Tieman absent). Police Pension Board Meeting of August 14, 2014 Mr. Unterkofler moved for approval of the minutes of the Police Pension Board meeting of August 14, 2014, seconded by Chief Bernat and carried by a unanimous roll call vote (Anderson and Stallings absent). OPEB Board Meeting of August 14, 2014 Mrs. Mitchell moved for approval of the minutes of the OPEB Board meeting of August 14, 2014 seconded by Mr. Hare and carried by a unanimous roll call vote (Williams absent). Organizational Issues - Election of Civilian Pension Board Chair Mr. Clendaniel moved to nominate Mrs. Tieman to serve as Chair of the Civilian Pension Board, seconded by Mr. Blakeman. Mr. Blakeman moved to close nominations, seconded by Mr. Clendaniel and carried by a unanimous roll call vote (Tieman absent). The motion to elect Mrs. Tieman as Chair of the Civilian Pension Board was carried by a unanimous roll call vote (Tieman absent). Discussion - Investment Management and Advisory Services Mrs. Donna Mitchell, Controller/Treasurer, explained that the City’s current agreement with Milliman, Inc. for investment management and advisory services would be coming up for renewal in March 2015. Referring to the Request for Proposals (RFP) for Consulting and Advisory Services, dated October 14, 2011, and information related to RFP Number 12-0018FN, she explained that this information was provided so that members would be familiar with the process used the last time the City changed its investment manager. Referring to the spreadsheet entitled “Consulting & Advisory Services for Trust Fund Investments RFP #12-0018FN - Fee Schedules,” Mrs. Mitchell stated that this scoring sheet had been used to evaluate proposals. She noted that some of the proposals that

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 2 were received contained fixed fee arrangements, some had fees based on a percentage of the assets in the fund, and some were based on a combination of fixed fees and percentages. Mrs. Mitchell advised members that staff laid out all of the different types of fees to see what the total cost for each proposal would be, calculations were made based on the amount of assets at that time, and staff’s recommendation, based on qualitative and price factors, was to select Milliman, Inc. Mrs. Mitchell requested direction on whether members would like staff to issue another RFP, noting that members could also opt to extend the existing agreement with Milliman, Inc. since there was a provision in the agreement for two (2), one (1) year extensions. She expressed her hope that the Civilian Pension, Police Pension, and OPEB Boards would all be agreeable to working with the same investment manager. Mr. Blakeman moved to extend the City’s current agreement with Milliman, Inc. Mr. Koenig questioned whether the motion was to extend the agreement for one (1) or two (2) years. Responding, Mr. Blakeman stated his intent that the agreement be extended for one (1) year. The motion was seconded by Mr. Clendaniel. The motion to extend the City’s current investment management agreement with Milliman, Inc. for one (1) year carried by a unanimous roll call vote (Anderson, Stallings, Tieman, and Williams absent). Discussion - Trust Fund Custody Services Mrs. Donna Mitchell, Controller/Treasurer, advised members that years ago the City utilized Merrill Lynch for both trust fund custody and investment management services. It was the recommendation of the Government Finance Officers Association (GFOA) that these services be split for custodial purposes, so that creditors would not have access to assets; therefore, Wachovia Bank became the provider of custody services for the City. Mrs. Mitchell explained that Wachovia Bank was then bought out by Wells Fargo Bank, and Wells Fargo Bank is the current provider of custody services for the City. She stated that this service had not been obtained through the Request for Proposal (RFP) process and the City’s contract with Wells Fargo Bank was open-ended with no expiration date. She provided members with a copy of the City of Dover bill for October 2014 from Wells Fargo Bank that reflected the fees being paid to Wells Fargo Bank for management and disbursement of monthly pension checks (Attachment #1) . Referring to Page 1 of the bill, Mrs. Mitchell stated that the fees for the month were $2,006.93, noting that this bill reflected total fees for both the Employee and Police Pension Funds and that Page 3 contained a breakdown of amounts charged for each of these two (2) funds. Page 2 provided charges for holding the assets, based on their market value, as well as fees for making pension payments each month. Members were provided preliminary schedules to be included in the City’s Comprehensive Annual Financial Report (CAFR), as follows: Statement of Changes in Net Position Fiduciary Funds - Year Ended June 30, 2014 (Attachment #2), Combining Statement of Changes in Pension Trust Fund Net Pension (Attachment #3), Schedule of Changes in Pension Trust Fund Net Assets Fiscal Year Ending 6/30/2015 - Police Pension Trust (Attachment #4), and Schedule of Changes in Pension Trust Fund Net Assets - Fiscal Year Ending 6/30/2015 - Civilian Pension Trust (Attachment #5). Referring to the Statement of Changes in Net Position - Fiduciary Funds for the Year Ended June 30, 2014, she

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 3 advised members that the $21,543 listed under Pension Trust Fund - General Administration reflected the annual cost paid for both the General Employee and Police Pension Plans during the previous fiscal year. She questioned if members were happy with the services provided by Wells Fargo Bank or if they would like her to issue an RFP for trust fund custody services. Mr. Mullaney stated that he had not seen any problems with Wells Fargo Bank and his checks were being deposited on time. Mr. Unterkofler reminded members that there had been a brief issue with receipt of retiree statements, as previously discussed during the Civilian and Police Pension Board meetings of February 26, 2014. Responding, Mrs. Mitchell stated that this problem had been resolved and Wells Fargo Bank had come before the Boards and personally apologized. Mr. Koenig questioned if fees for FY 2016 were estimated to be closer to $24,000 versus the $21,000 in fees reflected in the Statement of Changes in Net Position Fiduciary Funds for the Year Ended June 30, 2014, and Mrs. Mitchell confirmed this. Mr. Koenig questioned if the Wells Fargo Bank fees were competitive with other organizations. Responding, Mrs. Mitchell expressed her belief that Wells Fargo Bank’s fees were very competitive; however, she stated that she could check this if desired. She indicated that she was very happy with the service being provided for the amount that the City was paying. Mr. Koenig stated that he had no issues as long as Mrs. Mitchell believed the fees were competitive. In reference to Page 2 of the October 2014 bill from Wells Fargo Bank, Mrs. Hawkins noted a postage charge of $0.49 for each statement that is mailed. She questioned if the City received a discounted rate for postage. Mrs. Mitchell explained that if the statements were mailed through the City’s bulk mail, the rate would be discounted. Mrs. Hawkins questioned if there had been discussion with Wells Fargo Bank about a discounted rate. Mrs. Mitchell stated that she would discuss this with Wells Fargo Bank. Referring to Page 2 of the Wells Fargo Bank bill, Mr. Hare noted that 262 checks were mailed each month and questioned if retirees were paid through electronic transfer. Mrs. Mitchell confirmed this; however, she stated that pay statements are mailed to all retirees. She explained that this could be done electronically; however, staff had determined that this would have to be done “all or none” and could not be offered selectively to some employees. Responding to Mr. Hare, Mrs. Mitchell explained that the fees for mailing and processing checks were approximately $652.93 per month and $1,354.55 was the administration charge for holding the assets, as reflected on the Wells Fargo Bank bill. She indicated that there were approximately $45.6M in assets. Mr. Hare questioned if Wells Fargo Bank paid the City for the assets; and Mrs. Mitchell stated that this was a management function and Wells Fargo Bank did not pay the City for this.

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 4 In response to Mr. Koenig, Mrs. Mitchell explained that difference in the rates (0.0004 vs. 0.0003), reflected on Page 2 of the Wells Fargo Bank bill for October, was because a lower rate applies to assets under $25,000,000, noting that basing fees on asset size was common for investment and custody managers, such as Milliman, Inc. [Clerk’s Office Note: Subsequent to the meeting, Mrs. Mitchell indicated that the rate charged for assets up to $25M was 0.0004 and a lower rate of 0.0003 was charged for the City’s assets in excess of that amount.] Mr. Blakeman stated his preference not to make a change in custody services if there was no strong reason to do so. Members took no further action on this item. Update on Pacific Investment Management Company (PIMCO) (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, thanked members for extending Milliman, Inc.’s contract, noting that it was a pleasure to work with everyone from the City, and expressed appreciation for members putting in their time, care, and due diligence for each of the plans. Mr. Marzinsky advised members that Pacific Investment Management Company (PIMCO) is a bond fund manager whose investments are included in the OPEB, Police Pension, and General Employee Pension plans and that the OPEB plan includes a bond fund called the PIMCO Total Return Fund. He explained that earlier in the year, the Chief Executive Office (CEO) of PIMCO abruptly left the organization and Milliman, Inc. put PIMCO on watch and began performing a closer due diligence, including meeting with management to ensure that their ongoing operations would not be affected by that change. Mr. Marzinsky indicated that in September 2014, Mr. Bill Gross, the manager of the PIMCO Total Return Fund who started PIMCO 30 years ago, abruptly announced that he was leaving. In October 2014, Milliman, Inc. met with the management team of the Total Return Fund to get more insight as to whether there would be fund policy changes. Mr. Marzinsky informed members that, in the past, PIMCO was known as a very good fund with very good returns; however, the future of the fund was unknown. Many changes were expected with regard to the organization, and many pension plan sponsors and organizations had moved out of the fund. It was anticipated that additional departures from the plan would occur in January and February 2015. As a result, Milliman, Inc. recommended that plan sponsors or investment holders in the PIMCO Total Return Fund, which is in the OPEB plan, do a closer due diligence. Referring to the Competitor Analysis Report - Core Fixed Income, Mr. Marzinsky stated that he had examined some alternative funds available on the Wells Fargo platform, including the Loomis Sayles Core Plus Bond Y and Dodge & Cox Income Funds, and compared them to the PIMCO Total Return Institutional Fund. Referring to Page 1 of the report, Mr. Marzinsky stated that Trailing Peer Group Performance indicated the rate of return. He indicated that the five ( 5) year returns for PIMCO were “very good” and the % rank was “pretty good;” however, the Loomis and Sayles and Dodge & Cox funds had comparable returns and ranks. Referring to Page 4 of the report, Mr. Marzinsky reviewed information regarding the risk and returns for the funds, noting that the Standard Deviation reflected the volatility of the funds. He stated that the 3-Year Risk indicated that the PIMCO Total Return Fund had a standard deviation of 3.78 and Loomis Sayles Core Plus Bond

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 5 Y Fund had a slightly higher standard deviation of 4.34, noting that the Loomis Sayles fund had a slightly lower quality portfolio. He indicated that Dodge & Cox had a lower standard deviation and a little better bond quality. Mr. Marzinsky recommended, if the OPEB Board was concerned with PIMCO as an organization, its change in management, and the unknown future of the entity managing this fund, that Dodge & Cox be considered as a potential replacement. Noting some concerns with Loomis Sayles in that the OPEB fund already had the Ivy High Income Fund, which is a high-yield bond fund, he suggested that Dodge & Cox would be a good complement for the Ivy High Income Fund and a good potential replacement for the PIMCO Total Return Fund. Mr. Hare questioned how Mr. Marzinsky would personally invest the funds if the money belonged to him. Responding Mr. Marzinsky stated that there were many unknowns in regard to PIMCO and he would move out of the PIMCO Total Return Fund and consider the Dodge & Cox. Mrs. Mitchell moved to transfer the OPEB investments from the PIMCO Total Return Fund to the Dodge & Cox Income Fund, as recommended by Milliman, Inc., seconded by Mr. Hare and carried by a unanimous roll call vote (Williams absent). Mr. Marzinsky stated that the Police Pension and Employee Pension Plans had holdings in the PIMCO Long Duration Bond Fund. He explained that there had been no changes in the managers of this fund and performance had been good; therefore, Milliman would watch this fund, as well as PIMCO as an organization, and no changes were recommended at this time. Quarterly Performance Review (Quarter Ending September 30, 2014) (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, reviewed the market conditions related to the investments held in the OPEB, Civilian Pension, and Police Pension Funds. Referring to Page 3 - Market Indices - 3rd Quarter 2014 of the Quarterly Investment Monitor - Summary Report for the Quarter Ending September 30, 2014 included in each of the reports for the OPEB, Employee Pension, and Police Pension Plan, he explained that the markets through September 30, 2014 reflected generally positive returns in U. S. equities. Three (3) month returns for smaller cap equities showed a declining return, including a big decline during the month of October; however, there was a big rebound in the markets through the end of October and into November. Mr. Marzinsky stated that year-to-date equity market returns were positive, although there had been significant declines earlier in the current week; however, the Dow Jones Industrial Average was still up by approximately 8% and the Standard & Poor 500 by 12%. He indicated that there had been a decline in interest rates on longer-term (five (5) years and longer) investments; however, bonds had been positive year to date. Mr. Marzinsky stated that international indexes reflected concerns abroad and European markets were being affected by a quantitative easing with the European Central Bank, which was causing some volatility and concerns. The emerging market indexes reflected some concerns with growth in China, driving some slightly negative returns. He explained that, in general, there were many positives in the U. S. in that unemployment had declined, and industrial production had increased; however, retail sales were lagging. He stated his belief that those who had been out of work for a long time had debt and concerns about saving and were not “out shopping”, leading to dragging sales returns.

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 6 OPEB Referring to Page 9, Asset Allocation, of the Quarterly Investment Monitor - Summary Report for the Quarter Ending September 30, 2014 - Other Post-Employment Benefits Fund, Mr. Marzinsky stated that the plan had approximately $18M in assets. He reminded members that a new asset allocation had been approved during their meeting of August 14, 2014, and indicated that the new asset allocation targets were in place and he anticipated rebalancing the fund before the end of the year. Referring to Page 10 - Investment Policy Review - Active Management, he stated that this was the fund’s “scorecard” that looks at the criteria set in the written investment policy to monitor the performance of the various managers. Mr. Marzinsky informed members that the Return Rank columns rank the actual returns of the funds to other managers in like asset categories and the Ivy High Income I Fund ranked in the top 9% and 4% of other managers in its category over three (3) and five (5) years, respectively. Nearly all funds ranked in the top half or better. The Excess Return column compares the return of the manager to the return of the fund’s index and positive returns were desired. Mr. Marzinsky noted some underperformance in a couple of the funds, including the Target Small Capitalization Value T Fund, which is a fairly diversified fund with approximately 700 underlying stocks, some of which are retail stocks. He felt there were no major concerns. Mr. Marzinsky explained that the Relative Standard Deviation reflects the volatility of the funds, with a number lower than 1.0 indicating less volatility than the market benchmark, and most funds achieved this. He explained that the Alpha and Sharpe Ranks are some of the risk-adjusted return measurements that Milliman, Inc. examines, with Alpha measuring manager effectiveness and Sharpe looking at the outperformance compared to the index. Mr. Marzinsky felt that everything generally ranked very well and there were no major concerns with active managers at this time, other than the PIMCO Total Return Fund which was addressed earlier. Referring to Page 11 - Investment Policy Review - Passive Management, Mr. Marzinsky reviewed the performance of the index funds. He indicated that a beta score close to 1.0 indicates that a fund is following its index as defined in the policy. Since Vanguard had changed some of the underlying indexes that they follow, there were some measurements higher and lower than 1.0; however, there were generally no concerns in the shorter-term periods. Mr. Marzinsky stated that the beta can sometimes be elevated, such as the Vanguard Short-Term Bond Index Signal Fund. Mr. Marzinsky explained that when composing an index, fund managers look at bond issues; however, sometimes they cannot buy them because there are a limited number of bonds, so they try to approximate the return of the index. He indicated that there were no major concerns. In regard to the Expense Ratio, Mr. Marzinsky stated that Milliman, Inc. likes to include Vanguard Funds, especially in pension portfolios, because they typically have the lowest expense ratios available. In reference to Page 12 - Investment Option Return Summary, Mr. Marzinsky stated that the gross return for the portfolio was 5.16% for the year to date, which was generally in line with the index. There was slight underperformance; however, it was not significant. The one (1) year return was 9.86%, which was “pretty good” for a balanced portfolio and above the actuarial target return, which would improve the funded status for the plan. Referring to the Board Meeting Notes for the OPEB Plan, Mrs. Hawkins noted that the fund balance on June 30, 2014 was approximately $18M and on September 30, 2014 was approximately $18.3M. She questioned if this difference represented employee contributions, payments coming out, and any

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 7 gains or losses. Mr. Marzinsky stated that to calculate the return and balances, Milliman, Inc. looks at the Wells Fargo Bank statements which capture contributions. He explained that the OPEB plan does not have benefits going out; however, there was a slight decline in the market, so some of the smaller cap equity funds had negative returns during that period. Mr. Koenig questioned what the deductions were if no cash was being paid out. Responding, Mrs. Mitchell stated that benefit payments are being paid through the fund as retirees’ health care on the budget report, and this portion is just the unfunded piece. She indicated that when the annual required contribution (ARC) is calculated, staff takes into consideration the amount paid for retirees’ health care as part of the required contribution. Mr. Hare moved for acceptance of the report, seconded by Mrs. Mitchell and carried by a unanimous roll call vote (Williams absent). Civilian Mr. Marzinsky reviewed the Quarterly Investment Monitor - Summary Report for the Quarter Ending September 30, 2014 - General Employee Pension Plan. Referring to Page 9 - Asset Allocation, he stated that, based on the discussions held at the August 14, 2014 meeting, the plan was rebalanced to the new target allocations of approximately 67% equities and 33% fixed income. At the end of the quarter, the plan had approximately $33.5M in assets. There was a slight decline due to benefit payments and negative returns of some of the smaller cap equity funds in the portfolio; however, this “bounced back” through November. Mr. Marzinsky reviewed Page 10 - Investment Policy Review - Active Management, explaining that Return Rank values range from 0 to 99, with 0 being the best and 99 the worst. Mr. Marzinsky stated that returns compared to peers were very good; everything was at the 50th percentile or better, with some plans ranking in the top 10%, and there were no major concerns with return rank or category. He indicated that the Excess Return compares the return of the actual fund manager to the return of the index, and the Target Small Capitalization Value T Fund did have slight underperformance due to some retail stocks not having the sales that they anticipated; however, there were no major concerns. Mr. Marzinsky noted that a Relative Standard Deviation below 1.00 indicated less risk than the market benchmark. He explained that the Alpha and Sharpe values range from 0 to 99, with 0 being the best and 99 the worst rank, so some funds had the best risk-adjusted returns available. All funds ranked well and Milliman, Inc. would watch PIMCO as a organization. He noted that this plan did not include the PIMCO Total Return Fund; however, it did have the PIMCO Long Duration Fund. There were no manager changes to that fund, which ranked very well compared to its peers and had returns above the index. Mr. Marzinsky stated that there were no concerns with PIMCO, other than the organizational changes of the Chief Executive Officer (CEO) and investment committee, and this would be monitored. No changes were recommended at this time. Referring to Page 11 - Investment Policy Review - Passive Management, Mr. Marzinsky stated that the 3 Year and 5 Year Beta figures were very close to 1.0, indicating that the funds were following their market index closely. He noted that there were some anomalies in the bond funds, which were generally expected; however, there were no major concerns at this time. The Expense Ratio indicated very low expenses of the underlying investments compared to other index providers, so there was a good allocation among Vanguard index funds within the plan.

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 8 In reference to Page 12, - Investment Option Return Summary, Mr. Marzinsky indicated that the three (3) month and year-to-date returns indicated performance generally in line with the market benchmark. The gross return for the plan was 5.54% and the net return was 5.32% year to date. He explained that each fund has an assigned benchmark index, which compares its performance to the return that would be realized if the funds were just being invested in the market. Mr. Marzinsky stated that the fund was overperforming the benchmark for the year to date and over one (1) year. The three (3) year performance reflected the returns of the fund’s prior advisor’s portfolio, and the five (5) year returns reflected some underperformance in the past, which he stated had been remedied with the changes the Board had made to the portfolio. Mr. Marzinsky stated that the 9.78% return was higher than the actuarial valuation return, which would help the funded status of the plan. Mrs. Mitchell moved for acceptance of the report, seconded by Mr. Blakeman and carried by a unanimous roll call vote (Tieman absent). Police Pension Referring to Page 1 of the Board Meeting Notes for the Police Pension Plan, Mr. Marzinsky explained that this Quarterly Return Summary reflected actual calculations from the Wells Fargo Bank statements including contributions, withdrawals, fees and expenses, and that market values and the returns are calculated from these statements. In reference to Page 9 - Asset Allocation, Mr. Marzinsky explained that as of September 30, 2014, the plan had approximately $11.7M in assets. It was down slightly due to some of the negative returns seen in small cap and international investments; however, it was in line with the target allocation established in 2013. Referring to Page 10 - Investment Policy Return - Active Management, Mr. Marzinsky noted that performance of managers was generally good, and return ranks and excess returns were very good compared to benchmarks. He explained that Return Rank values range from 0 to 99, with 0 being the best and 99 the worst. Mr. Marzinsky stated that returns compared to peers were very good; everything was at the 50th percentile or better, with some plans ranking in the top 10%, and there were no major concerns with return rank or category. He indicated that the Excess Return compares the return of the actual fund manager to the return of the index, and the Target Small Capitalization Value T Fund did have slight underperformance due to some retail stocks not having the sales that they anticipated; however, there were no major concerns. Mr. Marzinsky noted that a Relative Standard Deviation below 1.00 indicated less risk than the market benchmark. He explained that the Alpha and Sharpe values range from 0 to 99, with 0 being the best and 99 the worst rank, so some funds had the best risk-adjusted returns available. Mr. Marzinsky stated that relative standard deviation and risk measures were very good, which led to good Alpha and Sharpe ranks compared to peer groups. All funds ranked well and Milliman, Inc. would watch PIMCO as a organization. He noted that this plan did not include the PIMCO Total Return Fund; however, it did have the PIMCO Long Duration Fund. There were no manager changes to that fund, which ranked very well compared to its peers and had returns above the index. Mr. Marzinsky stated that there were no concerns with PIMCO, other than the organizational changes of the Chief Executive Officer (CEO) and investment committee, and this would be monitored. No changes were recommended at this time.

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 9 Referring to Page 11 - Investment Policy Review - Passive Management, Mr. Marzinsky advised members that the index funds were designed to follow the markets and the 3 Year and 5 Year Beta columns reflected that funds were in line with market indicators. He stated that the expense ratio was very low compared to its peer groups. In reference to Page 12 - Investment Option Return Summary, Mr. Marzinsky explained that this information reflected the underlying performance of the portfolio, and the year-to-date column showed that the returns were approximately 5.15% year to date, generally in line with the index. He stated that the one (1) year performance was 9.41% compared to the index of 9.11%. Mr. Marzinsky reminded members that the prior year returns included the fund allocation of the prior investment advisor, and, generally, returns had been enhanced over the past two (2) years with portfolio changes that had been made. Mr. Marzinsky stated that performance was generally good and the one (1) year return would help improve the funded status since it exceeded the actuarial target return. Mr. Unterkofler moved for acceptance of the report, seconded by Mr. Stallings and carried by a unanimous roll call vote. Review of Asset Allocation (Police Pension) During the Police Pension Board meeting of August 14, 2014, members considered the Annual Review of Investment Policy. Mr. Marzinsky reviewed the City of Dover, Delaware Police Pension Plan Asset Allocation Study, dated July 2014. At that time, members deferred consideration of changes to the asset allocation until the next meeting. During the meeting of December 11, 2014, members reviewed the City of Dover, Delaware Police Pension Plan Asset Allocation Study. Referring to Page 5 - Portfolio Options, Mr. Mullaney stated that three (3) sample options were provided in regard to changing the plan’s asset allocation. He stated that the first sample portfolio would increase the allocation to approximately 67% equities and 33% fixed income, which would slightly increase the volatility of the fund, and the second and third sample portfolios would assume greater risk than that. Responding to Mr. Mullaney, Mr. Marzinsky confirmed that the Civilian Pension Board had increased their equity investments to 67% equities and 33% fixed income during their meeting of August 14, 2014. Mr. Marzinsky stated that the Police Pension Fund’s current allocation was 60% stock and 40% fixed income. Mr. Marzinsky stated that the federal government was indicating that they would raise interest rates, which had the potential to negatively affect the value of bonds in the portfolio. He indicated that if the Federal Reserve decides mid-year in 2015 to adjust interest rates, Milliman, Inc. may recommend going a little bit more to equity at that time. He felt that selecting Sample Portfolio #1 would be a “middle of the road step.” Responding to Mr. Mullaney regarding the average return expected with the current 60% equity to 40% fixed income split, Mr. Marzinsky stated that the expected return may be approximately 6.6% over the next 10 years, which would be a little less than the actuarial target return, noting that actual returns and projections may differ. He stated that the projected returns could be increased slightly with the other sample portfolios; however, volatility would also increase.

JOINT CIVILIAN AND POLICE PENSION AND OPEB BOARDS MEETING OF DECEMBER 11, 2014 PAGE 10 In response to Mr. Mullaney, Mr. Marzinsky confirmed that his recommendation would be to select Sample Portfolio #1. Mr. Mullaney moved to reallocate the fund investments based on Sample Portfolio #1, seconded by Mr. Stallings. Responding to Mr. Anderson, Mr. Marzinsky confirmed that the equity markets were very high right now, noting that records were hit in the last two (2) weeks. However, when looking at the whole U.S. economy, Mr. Marzinsky stated that everything was doing much better and equities are not just based on the market going up. Some of the equity investments in the portfolio were based on some of the underlying companies’ ability to pay dividends, which would help the return of the portfolio. He felt there were many indicators of a good future outlook. The U.S. economy was a lot stronger than it had been in the last five (5) or six (6) years and was continuing to improve. Mr. Marzinsky stated that having a diversified portfolio was a good thing. He reminded members that in August 2015 portfolio allocations would be addressed again, and equity markets and interest rates would be examined. Mr. Anderson questioned if any of the models used dealt with any hedging mechanisms. Responding, Mr. Marzinsky stated that they do have a little hedging; however, some of this hedging is more currency driven. Since it is a fairly balanced portfolio, he stated that there was nothing that creates a volatility-driven hedge within the portfolio. He indicated that this might be a little costly for the size of the portfolio in place. The motion to reallocate the fund investments based on Sample Portfolio #1 carried by a unanimous roll call vote. [City Clerk’s Office Note: The City of Dover Police Pension Plan Strategic Asset Allocation Policy, as amended to reflect the reallocation of fund investments, is Appendix A to the Investment Policy Statement - City of Dover Police Pension Plan (Attachment #6).] Chief Bernat moved for adjournment, seconded by Mr. Unterkofler and unanimously carried. Meeting adjourned at 9:58 a.m. Timothy Mullaney Chairman of the Police Pension Board TM/JS/dd S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Misc-Minutes\JOINT CIVILIAN AND POLICE PENSION AND OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARDS\2014\12-11-2014 Joint Civilian-Police Pension and OPEB Boards.wpd Attachments Attachment #1 - October 2014 - Wells Fargo Bank Bill - Management and Disbursement of Monthly Pension Checks Attachment #2 - Statement of Changes in Net Position Fiduciary Funds - Year Ended June 30, 2014 Attachment #3 - Combining Statement of Changes in Pension Trust Fund Net Pension Attachment #4 - Schedule of Changes in Pension Trust Fund Net Assets Fiscal Year Ending 6/30/2015 - Police Pension Trust Attachment #5 - Schedule of Changes in Pension Trust Fund Net Assets - Fiscal Year Ending 6/30/2015 - Civilian Pension Trust Attachment #6 - Investment Policy Statement - City of Dover Police Pension Plan, dated August 2014 (including Appendix A, as amended)

ATTACHMENT #1 Joint Civilian/Police and OPEB Boards Meeting of 12/11/2014

ATTACHMENT #2 Joint Civilian/Police and OPEB Boards Meeting of 12/11/2014

ATTACHMENT #3 Joint Civilian/Police and OPEB Boards Meeting of 12/11/2014

ATTACHMENT #4 Joint Civilian/Police and OPEB Boards Meeting of 12/11/2014

ATTACHMENT #5 Joint Civilian/Police and OPEB Boards Meeting of 12/11/2014

ATTACHMENT #6 Joint Civilian/Police and OPEB Boards Meeting of 12/11/2014

Investment Policy Statement City of Dover Police Pension Plan APPENDIX A This Appendix to the Investment Policy Statement has been reviewed and approved by the Board: STRATEGIC ASSET ALLOCATION POLICY Asset Class Target Cash & Short-Term Bond 8% Inflation-Protected Bond 5% Intermediate Term Bond 6% Long-Term Bond 7% High Yield Bond 7% Large Value 11% Large Growth 14% Mid Cap Equity 6% Small Cap Equity 7% Foreign Equity 12% Diversified Emerging Mkts 9% Real Estate 8% 100% The above ranges will be considered the long-term or policy allocation . The current "Policy" is the Target for such respective Asset Class of investment. There will be a Range of+/- 5% to the Target to allow for modest market fluctuations before rebalancing of the portfolio. The portfolio will be reviewed at least quarterly and adjusted as necessary to maintain alignment with the target allocations. Any deviations beyond the "Range" must have prior approval by the Board, unless caused by market actions. To indicate approval of this amendment to the Investment Policy Statement, the appropriate designated Board member shall sign below. This Appendix to the Statement of Investment Policy approved by action of the Board. Approved by: Controller/Treasurer Date approved :

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 – Milliman Re: Board Meeting Notes Enclosures: Milliman Quarterly Investment Monitor Report (QIM) 1. OPEB Plan Investment Review through 12/31/2014: a. At quarter end, the plan had assets of $19.5 million, up from $18.1 million at the beginning of the quarter. During the quarter, the plan had contributions of $800 thousand, no withdrawals, and fees of approximately $1.3 thousand. b. Total performance of the plan portfolio was 3.36% net (3.43% gross) for the quarter, generally in line with the Plan’s benchmark index performance of 2.76%. City of Dover OPEB Trust Quarterly Return Summary OPEB-NET OPEB-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 1/31/2014 $ 16,441,300.81 $ - $ - $ 1,250.00 $ (213,186.73) $ 16,226,864.08 -1.30% -1.27% 2/28/2014 $ 16,226,864.08 $ - $ - $ - $ 510,659.53 $ 16,737,523.61 3.15% 3.17% 3/31/2014 $ 16,737,523.61 $ - $ - $ - $ 74,959.75 $ 16,812,483.36 0.45% 0.47% 4/30/2014 $ 16,812,483.36 $ - $ - $ 1,250.00 $ 111,368.23 $ 16,922,601.59 0.66% 0.69% 5/31/2014 $ 16,922,601.59 $ - $ - $ - $ 324,015.99 $ 17,246,617.58 1.91% 1.94% 6/30/2014 $ 17,246,617.58 $ 831,375.00 $ - $ - $ 246,653.89 $ 18,324,646.47 1.37% 1.40% 7/31/2014 $ 18,324,646.47 $ - $ - $ 1,250.00 $ (213,840.59) $ 18,109,555.88 -1.17% -1.14% 8/31/2014 $ 18,109,555.88 $ - $ - $ - $ 502,641.23 $ 18,612,197.11 2.78% 2.80% 9/30/2014 $ 18,612,197.11 $ - $ - $ - $ (536,229.50) $ 18,075,967.61 -2.88% -2.86% 10/31/2014 $ 18,075,967.61 $ - $ - $ 1,250.00 $ 462,103.24 $ 18,536,820.85 2.56% 2.58% 11/30/2014 $ 18,536,820.85 $ - $ - $ - $ 245,996.91 $ 18,782,817.76 1.33% 1.35% 12/31/2014 $ 18,782,817.76 $ 800,000.00 $ - $ - $ (101,420.55) $ 19,481,397.21 -0.54% -0.51% $ 800,000.00 $ - $ 1,250.00 $ 606,679.60 Quarterly Return 3.36% 3.43% $ 1,631,375.00 $ - $ 5,000.00 $ 1,413,721.40 One Year Return 8.44% 8.77% c. As of quarter end, the Plan’s asset allocation was in line with the allocation targets approved at the last meeting; 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% 3-13%; target 8% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 6.00% 3-13%; target 8% Cash + STB Inflation Protected Bonds TIPS Vanguard Inflation Prot Sec 5.00% 5-10%; target of 5% TIPS Intermediate Term Bonds INTB Dodge & Cox Income 3.00% 1-11%; target 6% INTB Intermediate Term Bonds INTB Vanguard Total Bond Mkt Index Adm 3.00% 1-11%; target 6% INTB Long Term Bonds LTB PIMCO Long Duration 3.50% 2-12%; target 7% LTB Long Term Bonds LTB Vanguard Long Duration 3.50% 2-12%; target 7% LTB High Yield Bond HYB Ivy High Income I 7.00% 2-12%; target 7% HYB Large Cap Value LCV American Funds Washington Mutual 12.00% 7-17%; target 12% LCV Large Cap Blend LCB Vanguard 500 Index 0.00% REMOVED Large Cap Growth LCG Vanguard Growth Index 13.00% 8-18%; target 13% LCG Mid Cap MCV Vanguard Mid Cap Value Index 7.00% 2-12%; target 7% MC Small Cap SCV Target Small Cap Value 9.00% 4-14%; target 9% SC Real Estate Investment REIT Vanguard REIT Index 7.00% 2-12%; target 7% REIT Foreign Equity GLB American Funds New Perspective 5.00% 5-15%; target 10% FOR Foreign Equity FLG Oppenheimer Intl Growth Y 5.00% 5-15%; target 10% FOR Foreign Equity GLB Harding Loevner Global Equity 0.00% REMOVED Emerging Markets EMG Vanguard Emerging Mkts 9.00% 4-14%; target 9% Emg Mkts Offices in Principal Cities Worldwide DOCUMENT PAGE 1

Meeting Notes Page 2 d. The majority of the plan investments have performance and rankings in line with their peer groups and benchmarks, as well as risk analytics that rank well to their peer groups. i. The plan includes the Long Duration as a bond manager.  During the year PIMCO has had a variety of management changes within the organization with the resignation of their CEO during March, and the recent departure of Bill Gross, manager of the Total Return fund. With the changes in management of the organization, we recommend placing a watch on all PIMCO funds to review stability of management within the organization and their investment management teams. 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 DOCUMENT PAGE 2

Quarterly Investment Monitor Summary Report for the Quarter Ending December 31, 2014 Prepared for City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 3

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 DOCUMENT PAGE 4 2

Quarterly Investment Monitor Market Indices - 4th Quarter 2014 3 1 3 5 Index Months Year Years Years BofAML US Treasury Bill 3 Mon 0.00 0.03 0.07 0.09 Barclays US Govt 1-3 Yr TR USD 0.19 0.64 0.51 1.09 Barclays US Govt/Credit Interm TR USD 0.89 3.13 2.03 3.54 Barclays US Government Long TR USD 8.38 24.66 4.23 9.86 Barclays US Long Credit TR USD 4.06 16.39 7.00 9.70 Barclays US Corporate High Yield TR USD -1.00 2.45 8.43 9.03 DJ Industrial Average TR USD 5.20 10.04 16.29 14.22 S&P 500 TR 4.93 13.69 20.41 15.45 NASDAQ 100 TR USD 4.90 19.40 24.61 19.23 NASDAQ Composite TR USD 5.70 14.75 23.60 17.19 Russell 1000 Value TR USD 4.98 13.45 20.89 15.42 Russell 1000 TR USD 4.88 13.24 20.62 15.64 Russell 1000 Growth TR USD 4.78 13.05 20.26 15.81 Russell 2000 Value TR USD 9.40 4.22 18.29 14.26 Russell 2000 TR USD 9.73 4.89 19.21 15.55 Russell 2000 Growth TR USD 10.06 5.60 20.14 16.80 FTSE NAREIT All REITs TR 12.44 27.15 16.39 16.63 MSCI EAFE NR USD -3.57 -4.90 11.06 5.33 MSCI EAFE Small Cap NR USD -2.27 -4.95 13.83 8.63 MSCI EM NR USD -4.50 -2.19 4.04 1.78 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 5 3

Quarterly Investment Monitor Broad Market Commentary - 4th Quarter 2014 Broad Markets - Quarter Broad Markets - Five Years Oct-14 - Dec-14 Dec-09 - Dec-14 6 240 5 220 4 200 3 Total Return, % Growth of $100 180 2 1 160 0 140 -1 120 -2 100 -3 -4 80 Oct-14 - Dec-14 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 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 posted solid returns, driven by improving economic growth, steady growth in corporate earnings, and the Federal Reserve's intent to maintain liquidity with low interest rates. Developed international equity markets fell on deteriorating economic conditions in Japan and fears that Europe might fall into another recession. Emerging markets declined on worries about falling commodity prices, the financial crisis in Russia, and slowing economic growth in China. The Fed ended its securities purchases in October citing "substantial improvement" in labor market conditions. In addition, the Fed said it will likely hold interest rates near zero at least through the first quarter of 2015. Mutual fund investors decreased their holdings in stocks and bonds. For the quarter, stock funds had net outflows of $14.1 billion, while bond funds had net outflows of $5.7 billion. Total money market mutual fund assets increased by $141.6 billion to $2.733 trillion. The unemployment rate fell from 5.9% to 5.6%, as total employment increased by 866,000 jobs this quarter. The price of oil decreased from $91 per barrel to $53 during the quarter, a decrease of 41.8%. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 6 4

Quarterly Investment Monitor US Fixed Income Market Commentary - 4th Quarter 2014 US Fixed Income - Quarter US Fixed Income - Five Years Oct-14 - Dec-14 Dec-09 - Dec-14 9 170 8 160 7 6 150 Total Return, % Growth of $100 5 140 4 3 130 2 120 1 0 110 -1 100 -2 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Oct-14 - Dec-14 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 rose 1.79% in the 4th quarter, as the positive impact from a 0.11% decline in interest rates enhanced the coupon return of 0.78%. The short end of the yield curve remained unchanged as the Fed maintained its near-zero interest rate policy. The yield curve flattened as the 30-year Treasury yield fell by 0.46%, while the 1-year rose by 0.11%. Long-term government bonds were the best performing sector this quarter, up 9.36%, as disappointing economic data in Europe and Asia increased demand for safe-haven assets. Long-term corporate bonds were up 5.01%, as declining yields on the long end of the curve more than offset widening spreads. Global bonds were the worst performing sector this quarter, down 1.73%, on worries that lower oil prices may cause Russian and Venezuelan bonds to default. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 7 5

Quarterly Investment Monitor US Equity Market Commentary - 4th Quarter 2014 US Equity - Quarter US Equity - Five Years Oct-14 - Dec-14 Dec-09 - Dec-14 11 220 10 200 9 8 180 Total Return, % Growth of $100 7 160 6 5 140 4 3 120 2 100 1 0 80 Oct-14 - Dec-14 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 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 small-cap Russell 2000 Growth Index had the best return, up 10.06%. In terms of capitalization, small-cap stocks outperformed large-cap stocks. In comparing styles, value outperformed growth in the large-cap area of the market, while growth exceeded value in the small-cap area. In a reversal from last quarter, REITs rose 15.09%, as fundamentals improved and lower interest rates increased demand for dividend-paying stocks. The best performing REITs were manufactured homes and health care. Utilities were the best performing sector, up 12.67%, as investors favored stocks with attractive dividend yields. Energy was the worst performing sector, falling 12.22%, as oil prices fell dramatically. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 8 6

Quarterly Investment Monitor International Market Commentary - 4th Quarter 2014 International - Quarter Oct-14 - Dec-14 0 International - Five Years -1 Dec-09 - Dec-14 Total Return, % -2 170 -3 160 -4 150 -5 140 Growth of $100 130 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD MSCI EM NR USD 120 Regional Performance - Quarter 110 Oct-14 - Dec-14 0 100 -2 90 Total Return, % -4 -6 80 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 -8 -10 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD -12 MSCI EM NR USD -14 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 up strongly against the euro, yen and pound. For the quarter, the EAFE Index was down 3.57%, and Emerging Markets were down 4.50%. Local currency returns for the EAFE Index and Emerging Markets were 1.77% and 0.01%, respectively. Among the major international regions, Chinese stocks had the highest return, up 7.17%, as the government announced a surprise cut in interest rates in order to stimulate growth. Stocks in Russia had the lowest return, down 32.92% in the 4th quarter and down 46.27% YTD, as investors worried about weaker oil prices, the plummeting ruble, and additional economic sanctions imposed in December. Small-cap stocks, down 2.27%, outperformed large-cap stocks, down 3.57%. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 9 7

Quarterly Investment Monitor Data as of 12/31/2014 Performance Summary City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 10 8

Quarterly Investment Monitor Data as of 12/31/2014 Asset Allocation Balances As of Percent As of Balances As of Percent As of Notes 12/31/2014 12/31/2014 09/30/2014 09/30/2014 Wells Fargo Advantage Cash Inv MMkt I $388,167 1.99% $365,071 2.02% WFIXX Vanguard Short-Term Bond Index Signal $1,178,202 6.05% $1,096,664 6.06% VBSSX Vanguard Inflation-Protected Secs I $984,600 5.05% $912,338 5.05% VIPIX PIMCO Total Return Instl $10,542 0.05% $546,765 3.02% PTTRX Dodge & Cox Income $587,737 3.02% $0 0.00% DODIX Vanguard Total Bond Market Index Signal $581,101 2.98% $550,307 3.04% VBTSX PIMCO Long Duration Total Return Instl $655,461 3.36% $641,776 3.55% PLRIX Vanguard Long-Term Bond Index I $653,597 3.35% $645,586 3.57% VBLLX Ivy High Income I $1,430,899 7.34% $1,275,976 7.06% IVHIX American Funds Washington Mutual R6 $2,325,962 11.94% $2,165,026 11.97% RWMGX Vanguard Growth Index I $2,469,653 12.68% $2,350,395 13.00% VIGIX Vanguard Mid Cap Index Adm $1,314,572 6.75% $1,262,527 6.98% VIMAX Target Small Capitalization Value T $1,705,160 8.75% $1,612,611 8.92% TASVX Oppenheimer International Growth Y $1,021,876 5.25% $895,207 4.95% OIGYX American Funds New Perspective R6 $1,052,265 5.40% $898,100 4.97% RNPGX Vanguard Emerging Mkts Stock Idx I $1,949,019 10.00% $1,584,936 8.77% VEMIX Vanguard REIT Index I $1,172,585 6.02% $1,279,094 7.07% VGSNX Plan Total $19,481,398 $18,082,379 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 11 9

Quarterly Investment Monitor Data as of 12/31/2014 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 15 7 0.02 -0.01 1.03 1.02 15 14 20 11 PIMCO Total Return Instl 23 39 2.22 1.60 1.85 1.61 47 52 67 78 Dodge & Cox Income 15 38 2.61 1.63 1.26 1.12 10 7 12 14 PIMCO Long Duration Total Return Instl 27 10 0.50 -0.11 0.99 0.96 64 64 70 60 Ivy High Income I 8 2 1.17 1.10 0.85 0.78 3 1 1 2 American Funds Washington Mutual R6 55 17 -1.86 0.39 0.84 0.84 4 4 7 5 Target Small Capitalization Value T 54 46 -3.20 -1.86 0.90 0.88 33 24 25 20 Oppenheimer International Growth Y 17 6 1.62 2.79 1.01 1.01 17 16 6 5 American Funds New Perspective R6 18 32 2.78 1.68 1.00 0.97 22 15 31 24 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 DOCUMENT PAGE 12 10

Quarterly Investment Monitor Data as of 12/31/2014 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 NA NA NA NA NA NA 0.10 Vanguard Total Bond Market Index Signal NA NA NA NA NA NA 0.08 Vanguard Long-Term Bond Index I 0.04 0.04 1.02 0.72 1.03 0.88 0.07 Vanguard Growth Index I 0.81 1.04 1.00 0.50 1.00 0.78 0.08 Vanguard Mid Cap Index Adm -0.30 -0.32 1.01 0.36 1.02 0.76 0.09 Vanguard Emerging Mkts Stock Idx I -0.23 -0.10 0.99 1.92 1.03 2.87 0.12 Vanguard REIT Index I 1.29 1.33 1.00 0.21 1.00 0.20 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 DOCUMENT PAGE 13 11

Quarterly Investment Monitor Data as of 12/31/2014 Investment Option Return Summary Asset Fund 3 1 3 5 10 Mstar Expense YTD Ticker Class Name Months Year Years Years Years Rating Ratio Money Market-Taxable Wells Fargo Advantage Cash Inv MMkt I 0.00 0.01 0.01 0.04 0.07 1.68 WFIXX NA 0.20 BofA ML 91-day Tbill Auction Avg 0.00 0.03 0.03 0.07 0.09 1.54 N/A NA NA Short-term Bond Vanguard Short-Term Bond Index Signal NA NA NA NA NA NA VBSSX 3.00 0.10 Barclays US Govt/Credit 1-3 Yr TR USD 0.17 0.77 0.77 0.89 1.41 2.85 N/A NA NA Inflation-Protected Bond Vanguard Inflation-Protected Secs I 0.20 4.07 4.07 0.46 4.10 4.30 VIPIX 4.00 0.07 Barclays US Treasury US TIPS TR USD (0.03) 3.64 3.64 0.44 4.11 4.37 N/A NA NA Intermediate-term Bond PIMCO Total Return Instl 1.32 4.69 4.69 4.26 5.14 5.99 PTTRX 4.00 0.46 Intermediate-term Bond Dodge & Cox Income 0.89 5.48 5.48 4.64 5.17 5.28 DODIX 4.00 0.43 BC Intermediate Government/Credit 0.89 3.13 3.13 2.03 3.54 4.10 N/A NA NA Intermediate-term Bond Vanguard Total Bond Market Index Signal NA NA NA NA NA NA VBTSX 2.00 0.08 Barclays US Agg Float Adj TR USD 1.76 5.85 5.85 2.68 4.48 NA N/A NA NA Long-term Bond PIMCO Long Duration Total Return Instl 5.06 19.02 19.02 6.27 9.70 NA PLRIX 4.00 0.50 Long-term Bond Vanguard Long-Term Bond Index I 5.55 19.87 19.87 5.81 9.85 7.43 VBLLX 4.00 0.07 BC Long Government/Credit 5.60 19.31 19.31 5.77 9.81 7.36 N/A NA NA High Yield Bond Ivy High Income I (1.61) 1.74 1.74 9.60 10.13 8.15 IVHIX 5.00 0.69 BC High Yield Corporate Bond (1.00) 2.45 2.45 8.43 9.03 7.74 N/A NA NA Large Value American Funds Washington Mutual R6 3.48 11.53 11.53 18.54 15.25 7.50 RWMGX 4.00 0.30 S&P 500 Value 4.78 12.36 12.36 20.40 14.86 7.03 N/A NA NA Large Growth Vanguard Growth Index I 5.08 13.62 13.62 20.75 16.02 8.67 VIGIX 4.00 0.08 CRSP US Large Cap Growth TR USD 5.10 13.69 13.69 19.95 14.98 8.56 N/A NA NA Mid-Cap Blend Vanguard Mid Cap Index Adm 6.64 13.76 13.76 21.27 17.04 9.47 VIMAX 4.00 0.09 CRSP US Mid Cap TR USD 6.65 13.83 13.83 21.57 17.36 9.50 N/A NA NA Small Value Target Small Capitalization Value T 7.25 5.89 5.89 17.98 15.10 9.24 TASVX 4.00 0.68 S&P 600 Value 10.44 7.54 7.54 21.18 16.96 8.59 N/A NA NA Foreign Large Growth Oppenheimer International Growth Y (1.05) (6.99) (6.99) 12.52 8.78 7.61 OIGYX 5.00 0.90 MSCI EAFE Large Growth NR USD (2.71) (4.70) (4.70) 10.90 5.99 5.11 N/A NA NA World Stock American Funds New Perspective R6 1.82 3.56 3.56 16.88 10.85 8.29 RNPGX 4.00 0.45 MSCI AC World Index ND USD 0.41 4.16 4.16 14.10 9.17 6.09 N/A NA NA Diversified Emerging Mkts Vanguard Emerging Mkts Stock Idx I (3.67) 0.67 0.67 4.38 1.96 8.16 VEMIX 4.00 0.12 FTSE Emerging NR USD (3.49) 1.21 1.21 4.61 2.06 8.98 N/A NA NA Real Estate Vanguard REIT Index I 14.29 30.28 30.28 16.24 17.03 8.56 VGSNX 4.00 0.08 MSCI US REIT NR USD 13.95 28.82 28.82 14.96 15.70 NA N/A NA NA Total Plan OPEB-GROSS RETURN 3.43 8.77 8.77 10.63 NA NA N/A NA NA Total Plan OPEB-NET RETURN 3.36 8.44 8.44 10.26 NA NA N/A NA NA OPEB Plan Policy Index 2.76 8.69 8.69 10.20 8.74 5.70 N/A NA NA City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 14 12

Quarterly Investment Monitor Data as of 12/31/2014 U.S. Fixed Income Style Map 36 Month moving average, Jan-10 - Dec-14 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 Dodge & Cox Income 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 DOCUMENT PAGE 15 13

Quarterly Investment Monitor Data as of 12/31/2014 U.S. Equity Style Map 36 Month moving average, Jan-10 - Dec-14 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 DOCUMENT PAGE 16 14

Quarterly Investment Monitor Data as of 12/31/2014 International Equity Style Map 36 Month moving average, Jan-10 - Dec-14 Europe Large Asia Pacific Large Small - Large Europe Small Asia Pacific Small European Emerging Asia Pacific Emerging Europe - Asia SBI Equity Indices Oppenheimer International Growth Y American Funds New Perspective R6 Vanguard Emerging Mkts Stock Idx I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 17 15

Quarterly Investment Monitor Data as of 12/31/2014 Core Fund Review City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 18 16

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard Short-Term Bond Index Signal 3.15 % Cash Portfolio Information Investment Strategy Summary 12.56 % US Stocks Ticker VBSSX Morningstar Category Short-term Bond The investment seeks to track the performance of a market-weighted bond index with a % Bonds short-term dollar-weighted average maturity. The fund employs an indexing investment % Non-US Stocks Avg Mkt Cap $MM NA approach designed to track the performance of the Barclays U.S. 1-5 Year % Pref Cat Med Mkt Cap $MM 45395.04 Government/Credit Float Adjusted Index. This index includes all medium and larger issues of % Conv Net Assets $MM 37141.82 U.S. government, investment-grade corporate, and investment-grade international % Other Turnover Ratio 50.00 dollar-denominated bonds that have maturities between 1 and 5 years and are publicly % Non-US Bonds % Assets in Top 10 Holdings 12.36 issued. All of the fund's investments will be selected through the sampling process, and at Total Number of Holdings 2068.00 least 80% of the fund's assets will be invested in bonds held in the index. Manager Name Joshua C. Barrickman Manager Tenure 1.60 _________________________________________________________________________ 84.24 Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 3.15 5 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 84.24 % United Kingdom NA % Non-US Stocks 0.00 4 % Eurozone NA % Pref 0.05 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 12.56 % Rank Cat 3 Yr 70 3 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 59 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 33 2 % Asia - Emerging NA 1 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials NA Avg Eff Duration 2.69 2 300 % Communication Services NA Effective Maturity 2.80 0 % Consumer Cyclical NA Avg Credit Quality AA % Consumer Defensive NA AAA 72.57 250 % Healthcare NA AA 4.81 % Industrials NA A 12.54 -1 % Real Estate NA BBB 10.08 3 Months YTD 1 Year 3 Years 5 Years % Technology NA BB 0.00 200 % Energy NA B 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile % Utilities NA NR/NA 0.00 Ratio Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 0.625% 1.45% 100 Vanguard Short-Term Bond Index Signal -0.07 0.91 1.04 1.19 2.09 US Treasury Note 1.25% 1.45% Barclays US Govt/Credit 1-3 Yr TR USD 0.04 0.60 0.77 0.92 1.45 US Treasury Note 2.125% 1.37% Universe(5%) 0.14 2.52 3.49 4.31 4.91 US Treasury Note 1.75% 1.30% Universe(25%) -0.01 1.39 1.86 2.61 3.06 US Treasury Note 1.5% 1.20% 50 Universe(Median) -0.10 0.93 1.38 1.97 2.46 US Treasury Note 0.625% 1.19% Universe(75%) -0.26 0.64 0.91 1.23 1.88 US Treasury Note 0.625% 1.14% Universe(95%) -0.56 0.22 0.37 0.42 0.92 US Treasury Note 1.625% 1.12% US Treasury Note 1.5% 1.08% 0 0 Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.75% 1.06% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 19 17

Quarterly Investment Monitor Data as of 12/31/2014 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 Total Return, % 5 75 0 -5 100 Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -10 Up/Down Market Capture Ratio -15 Jan-12 - Dec-14 600 -20 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 500 Up Mkt Capture Ratio, % Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 400 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 300 Vanguard Short-Term Bond Index Signal 1.31 4.09 7.28 5.51 4.38 4.03 3.08 2.05 0.17 NA Barclays US Govt/Credit 1-3 Yr TR USD 1.77 4.25 6.83 4.97 3.82 2.80 1.59 1.26 0.64 0.77 200 100 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 3 3 3 0 -100 0 100 200 300 400 500 600 Down Mkt Capture Ratio, % 2 Total Annualized StdDev, % Excess Annualized StdDev, % Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD 1 Sharpe Ratio Alpha, % Return vs. Risk 0 1 1 1 Oct-11 - Sep-14 7 -1 6 Total Annualized Return, % -2 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 Vanguard Short-Term Bond Index Signal -0.67 2.12 90.30 1.09 1.02 0.60 1 Barclays US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 1.85 0.45 0.00 Universe(5%) 2.04 3.88 83.62 2.76 2.38 2.04 0 Universe(25%) 0.60 2.40 75.59 1.95 1.62 1.28 0 1 2 3 4 5 6 Universe(Median) 0.18 1.91 66.82 1.61 1.08 0.77 Total Annualized StdDev, % Universe(75%) -0.26 1.45 53.55 1.25 0.87 0.54 Universe(95%) -1.21 1.06 29.88 0.53 0.59 0.30 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Cash Barclays US Govt/Credit 1-3 Yr TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 20 18

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard Inflation-Protected Secs I % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VIPIX Morningstar Category Inflation-Protected Bond The investment seeks to provide inflation protection and income consistent with investment % Bonds in inflation-indexed securities. The fund invests at least 80% of its assets in % Non-US Stocks Avg Mkt Cap $MM NA inflation-indexed bonds issued by the U.S. government, its agencies and instrumentalities, % Pref Cat Med Mkt Cap $MM 12063.68 and corporations. It may invest in bonds of any maturity; however, its dollar-weighted % Conv Net Assets $MM 24831.85 average maturity is expected to be in the range of 7 to 20 years. At a minimum, all bonds % Other Turnover Ratio 44.00 purchased by the fund will be rated investment-grade or, if unrated, will be considered by % Non-US Bonds % Assets in Top 10 Holdings 45.74 the advisor to be investment-grade. Total Number of Holdings 40.00 Manager Name Gemma Wright-Casparius _________________________________________________________________________ Manager Tenure 3.37 99.49 Fund Incept Date 06/29/2000 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 0.51 5 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 99.49 % United Kingdom NA % Non-US Stocks 0.00 4 % Eurozone NA % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 3 % Africa NA % Non-US Bonds 0.00 % Rank Cat 3 Yr 18 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 4 2 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 7 % Asia - Emerging NA 1 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 0 % Basic Materials NA Avg Eff Duration 7.92 1.1 450 % Communication Services NA Effective Maturity 8.60 % Consumer Cyclical NA Avg Credit Quality Government 1.0 -1 400 % Consumer Defensive NA AAA 100.00 % Healthcare NA AA 0.00 0.9 % Industrials NA A 0.00 350 -2 % Real Estate NA BBB 0.00 3 Months YTD 1 Year 3 Years 5 Years 0.8 % Technology NA BB 0.00 300 % Energy NA B 0.00 0.7 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile % Utilities NA NR/NA 0.00 0.6 Ratio 250 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD Turnover 0.5 200 3 Year to 1 3 5 Top Ten Holdings Performance 0.4 Months Date Year Years Years US Treasury TIP 5.65% 150 Vanguard Inflation-Protected Secs I 0.20 4.07 4.07 0.46 4.10 US Treasury TIP 5.00% Barclays US Treasury US TIPS TR USD -0.03 3.64 3.64 0.44 4.11 0.3 US TREASURY TIP 4.70% Universe(5%) 0.12 3.77 3.77 0.87 4.28 100 US Treasury TIP 4.66% Universe(25%) -0.22 3.10 3.10 0.32 3.85 0.2 US TREASURY TIP 4.55% Universe(Median) -0.49 2.74 2.74 0.04 3.52 US Treasury TIP 4.52% 50 0.1 Universe(75%) -1.17 0.89 0.89 -0.21 3.21 US Treasury TIP 4.41% Universe(95%) -1.79 -1.43 -1.43 -0.62 1.49 US Treasury TIP 0.125% 4.28% US Treasury TIP 4.05% 0.0 0 Prospectus Exp Ratio Turnover Ratio US Treasury TIP 1.125% 3.92% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 21 19

Quarterly Investment Monitor Data as of 12/31/2014 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-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -5 Up/Down Market Capture Ratio -10 Jan-12 - Dec-14 225 -15 200 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 175 Up Mkt Capture Ratio, % Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 150 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 125 Vanguard Inflation-Protected Secs I 2.78 0.46 11.82 -2.81 11.03 6.33 13.39 6.87 -8.83 4.07 100 Barclays US Treasury US TIPS TR USD 2.84 0.41 11.64 -2.35 11.41 6.31 13.56 6.98 -8.61 3.64 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 1 7 5 0 0 20 40 60 80 100 120 140 160 180 6 Down Mkt Capture Ratio, % 0.2 4 Total Annualized StdDev, % Excess Annualized StdDev, % 5 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I 0 0.1 Barclays US Treasury US TIPS TR USD 3 Sharpe Ratio 4 Alpha, % 0.0 3 Return vs. Risk 2 -1 -0.1 Jan-12 - Dec-14 2 2 1 -0.2 1 1 Total Annualized Return, % -2 -0.3 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 0 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 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 Vanguard Inflation-Protected Secs I 0.02 1.02 99.25 0.10 5.36 0.48 -2 Barclays US Treasury US TIPS TR USD 0.00 1.00 100.00 0.10 5.22 0.00 Universe(5%) 0.67 1.14 99.76 0.24 6.01 4.19 -3 Universe(25%) -0.12 1.00 99.44 0.07 5.31 1.74 0 1 2 3 4 5 6 7 8 9 10 11 Universe(Median) -0.38 0.96 98.45 0.02 5.01 0.72 Total Annualized StdDev, % Universe(75%) -0.59 0.91 93.98 -0.05 4.80 0.43 Universe(95%) -1.06 0.31 57.78 -0.23 2.07 0.28 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Cash Barclays US Treasury US TIPS TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 22 20

Quarterly Investment Monitor Data as of 12/31/2014 PIMCO Total Return Instl 22.34 9.90 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker PTTRX Morningstar Category Intermediate-term Bond The investment seeks maximum total return, consistent with preservation of capital and 3.44 % Bonds prudent investment management. The fund normally invests at least 65% of its total assets % Non-US Stocks Avg Mkt Cap $MM NA in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be % Pref Cat Med Mkt Cap $MM NA represented by forwards or derivatives such as options, futures contracts, or swap % Conv Net Assets $MM 143358.38 agreements. It invests primarily in investment-grade debt securities, but may invest up to % Other Turnover Ratio 227.00 10% of its total assets in high yield securities ("junk bonds") rated B or higher by Moody's, % Non-US Bonds % Assets in Top 10 Holdings 104.54 or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of Total Number of Holdings 16789.00 comparable quality. Manager Name Mark R. Kiesel Manager Tenure 0.26 _________________________________________________________________________ Fund Incept Date 05/11/1987 64.11 Prospectus Exp Ratio 0.46 Phone Number 888-877-4626 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 22.34 7 % Canada NA % US Stocks 0.15 % Latin America NA % Bonds 64.11 % United Kingdom NA % Non-US Stocks 0.00 6 % Eurozone NA % Pref 0.06 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 3.44 3 Year Mstar Rating 5 % Africa NA % Non-US Bonds 9.90 % Rank Cat 3 Yr 22 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 37 4 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 4 % Asia - Emerging NA 3 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 2 % Basic Materials NA Avg Eff Duration 4.97 2 800 % Communication Services NA Effective Maturity 5.29 % Consumer Cyclical NA Avg Credit Quality NA 1 700 % Consumer Defensive NA AAA NA % Healthcare NA AA NA % Industrials NA A NA 0 600 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB NA % Technology NA BB NA % Energy NA B NA 5th to 25th Percentile 25th to Median 500 Prospectus Exp Ratio % Financial Services NA Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities NA NR/NA NA Ratio PIMCO Total Return Instl BC Intermediate Government/Credit 1 400 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance 300 Months Date Year Years Years Fin Fut Euro$ Cme (Red) 12/14/15 28.45% PIMCO Total Return Instl 1.32 4.69 4.69 4.26 5.14 Fin Fut Euro$ Cme (Red) 03/14/16 22.62% BC Intermediate Government/Credit 0.89 3.13 3.13 2.03 3.54 10 Year US Treasury Note Future Dec14 16.46% 200 Universe(5%) 1.75 6.86 6.86 5.86 6.65 Fin Fut Euro$ Cme (Red) 09/19/16 10.82% Universe(25%) 1.58 5.99 5.99 4.16 5.46 Irs Usd 3.000 09/21/16-1y (Grn) Cme 6.59% Universe(Median) 1.27 5.54 5.54 3.43 4.89 30 Year US Treasury Bond Future Dec14 5.37% 100 Universe(75%) 0.85 4.37 4.37 2.64 4.27 Irs Usd 1.750 06/15/16-1y (Grn) Cme 4.63% Universe(95%) 0.07 2.27 2.27 1.23 2.96 Fin Fut Euro$ Cme (Red) 06/13/16 4.52% Irs Usd 2.750 06/19/13-30y Cme 2.62% 0 0 Prospectus Exp Ratio Turnover Ratio US Treasury TIP 2.46% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 23 21

Quarterly Investment Monitor Data as of 12/31/2014 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-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -5 Up/Down Market Capture Ratio -10 Jan-12 - Dec-14 250 -15 225 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 200 Up Mkt Capture Ratio, % PIMCO Total Return Instl BC Intermediate Government/Credit 175 150 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 125 PIMCO Total Return Instl 2.89 3.99 9.07 4.82 13.83 8.83 4.16 10.36 -1.92 4.69 BC Intermediate Government/Credit 1.58 4.08 7.39 5.08 5.24 5.89 5.80 3.89 -0.86 3.13 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 3 2 4 3 0 -100 -50 0 50 100 150 200 250 Down Mkt Capture Ratio, % 2 Excess Annualized StdDev, % 3 Total Annualized StdDev, % Morningstar IntermTerm Bond Universe PIMCO Total Return Instl 2 BC Intermediate Government/Credit 1 Sharpe Ratio Alpha, % 1 2 Return vs. Risk 0 1 Jan-12 - Dec-14 1 10 -1 9 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 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 1 PIMCO Total Return Instl 0.69 1.77 92.15 1.15 3.63 1.83 0 BC Intermediate Government/Credit 0.00 1.00 100.00 1.00 1.96 0.00 -1 Universe(5%) 2.97 1.70 95.25 1.98 3.68 2.23 -2 Universe(25%) 1.41 1.45 92.84 1.41 3.08 1.49 0 1 2 3 4 5 Universe(Median) 0.63 1.33 89.69 1.15 2.79 1.13 Total Annualized StdDev, % Universe(75%) -0.05 1.18 83.20 0.93 2.53 0.95 Universe(95%) -1.13 0.87 57.48 0.53 1.97 0.49 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Cash BC Intermediate Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 24 22

Quarterly Investment Monitor Data as of 12/31/2014 Dodge & Cox Income 3.77 8.02 % Cash Portfolio Information Investment Strategy Summary 1.01 % US Stocks Ticker DODIX Morningstar Category Intermediate-term Bond The investment seeks a high and stable rate of current income, consistent with long-term % Bonds preservation of capital. The fund invests in a diversified portfolio of high-quality bonds and % Non-US Stocks Avg Mkt Cap $MM NA other debt securities. Normally, the fund will invest at least 80% of its total assets in the % Pref Cat Med Mkt Cap $MM NA following categories: debt obligations issued or guaranteed by the U.S. government, its % Conv Net Assets $MM 39127.93 agencies or GSEs; investment-grade debt securities; unrated securities if deemed to be of % Other Turnover Ratio 38.00 investment-grade quality by Dodge & Cox; and bankers' acceptances, bank certificates of % Non-US Bonds % Assets in Top 10 Holdings 17.25 deposit, repurchase agreements, and commercial paper. Total Number of Holdings 824.00 Manager Name Dana M. Emery _________________________________________________________________________ Manager Tenure 26.01 87.14 Fund Incept Date 01/03/1989 Prospectus Exp Ratio 0.43 Phone Number 800-621-3979 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 3.77 7 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.14 % United Kingdom NA % Non-US Stocks 0.00 6 % Eurozone NA % Pref 1.01 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.07 3 Year Mstar Rating 5 % Africa NA % Non-US Bonds 8.02 % Rank Cat 3 Yr 16 % 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 16 % Asia - Emerging NA 3 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 2 % Basic Materials NA Avg Eff Duration 4.10 2 800 % Communication Services NA Effective Maturity 7.10 % Consumer Cyclical NA Avg Credit Quality BBB 1 700 % Consumer Defensive NA AAA 54.56 % Healthcare NA AA 1.22 % Industrials NA A 10.14 0 600 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 23.02 % Technology NA BB 8.92 % Energy NA B 2.13 5th to 25th Percentile 25th to Median 500 Prospectus Exp Ratio % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile % Utilities NA NR/NA 0.00 Ratio Dodge & Cox Income BC Intermediate Government/Credit 1 400 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance 300 Months Date Year Years Years US Treasury Note 0.875% 2.48% Dodge & Cox Income 0.89 5.48 5.48 4.64 5.17 US Treasury Note 0.5% 2.02% BC Intermediate Government/Credit 0.89 3.13 3.13 2.03 3.54 US Treasury Note 1.625% 1.97% 200 Universe(5%) 1.75 6.86 6.86 5.86 6.65 US Treasury Note 0.625% 1.95% Universe(25%) 1.58 5.99 5.99 4.16 5.46 US Treasury Note 0.75% 1.73% Universe(Median) 1.27 5.54 5.54 3.43 4.89 US Treasury Note 1.5% 1.65% 100 Universe(75%) 0.85 4.37 4.37 2.64 4.27 US Treasury Note 1.5% 1.63% Universe(95%) 0.07 2.27 2.27 1.23 2.96 US Treasury Note 0.625% 1.48% US Treasury Note 1.5% 1.18% 0 0 Prospectus Exp Ratio Turnover Ratio FNMA 4.5% 1.16% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 25 23

Quarterly Investment Monitor Data as of 12/31/2014 Dodge & Cox Income 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-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -5 Up/Down Market Capture Ratio -10 Jan-12 - Dec-14 250 -15 225 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 200 Up Mkt Capture Ratio, % Dodge & Cox Income BC Intermediate Government/Credit 175 150 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 125 Dodge & Cox Income 1.98 5.30 4.68 -0.29 16.05 7.17 4.76 7.94 0.64 5.48 BC Intermediate Government/Credit 1.58 4.08 7.39 5.08 5.24 5.89 5.80 3.89 -0.86 3.13 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 3 2 4 3 0 -100 -50 0 50 100 150 200 250 Down Mkt Capture Ratio, % 2 Excess Annualized StdDev, % 3 Total Annualized StdDev, % Morningstar IntermTerm Bond Universe Dodge & Cox Income 2 BC Intermediate Government/Credit 1 Sharpe Ratio Alpha, % 1 2 Return vs. Risk 0 1 Jan-12 - Dec-14 1 10 -1 9 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 Dodge & Cox Income BC Intermediate Government/Credit 4 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 1 Dodge & Cox Income 2.34 1.11 77.48 1.83 2.47 1.19 0 BC Intermediate Government/Credit 0.00 1.00 100.00 1.00 1.96 0.00 -1 Universe(5%) 2.97 1.70 95.25 1.98 3.68 2.23 -2 Universe(25%) 1.41 1.45 92.84 1.41 3.08 1.49 0 1 2 3 4 5 Universe(Median) 0.63 1.33 89.69 1.15 2.79 1.13 Total Annualized StdDev, % Universe(75%) -0.05 1.18 83.20 0.93 2.53 0.95 Universe(95%) -1.13 0.87 57.48 0.53 1.97 0.49 Morningstar IntermTerm Bond Universe Dodge & Cox Income Cash BC Intermediate Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 26 24

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard Total Bond Market Index Signal 4.28 % Cash Portfolio Information Investment Strategy Summary 11.67 % US Stocks Ticker VBTSX Morningstar Category Intermediate-term Bond The investment seeks the performance of a broad, market-weighted bond index. The fund % Bonds employs an indexing investment approach designed to track the performance of the Barclays % Non-US Stocks Avg Mkt Cap $MM NA U.S. Aggregate Float Adjusted Index. This index represents a wide spectrum of public, % Pref Cat Med Mkt Cap $MM NA investment-grade, taxable, fixed income securities in the United States-including % Conv Net Assets $MM 124223.64 government, corporate, and international dollar-denominated bonds, as well as % Other Turnover Ratio 73.00 mortgage-backed and asset-backed securities-all with maturities of more than 1 year. All of % Non-US Bonds % Assets in Top 10 Holdings 5.22 the fund's investments will be selected through the sampling process, and at least 80% of Total Number of Holdings 16132.00 the fund's assets will be invested in bonds held in the index. Manager Name Joshua C. Barrickman Manager Tenure 1.60 _________________________________________________________________________ 84.02 Fund Incept Date 12/11/1986 Prospectus Exp Ratio 0.08 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 4.28 5 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 84.02 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.03 Portfolio Ratings 4 Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 11.67 % Rank Cat 3 Yr 78 % Middle East NA 5 Year Mstar Rating % Japan NA 3 % Rank Cat 5 Yr 74 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 46 % Asia - Emerging NA 2 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials NA Avg Eff Duration 5.60 0.7 350 % Communication Services NA Effective Maturity 7.70 1 % Consumer Cyclical NA Avg Credit Quality AA % Consumer Defensive NA AAA 69.87 0.6 300 % Healthcare NA AA 4.20 % Industrials NA A 12.55 0 % Real Estate NA BBB 13.38 3 Months YTD 1 Year 3 Years 5 Years 0.5 250 % Technology NA BB 0.00 % Energy NA B 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities NA NR/NA 0.00 0.4 200 Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 0.3 Turnover 150 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Ginnie Mae Jumbos TBA 4% 2044-10-01 0.58% Vanguard Total Bond Market Index Signal 0.17 4.10 3.90 2.32 4.03 US Treasury Note 0.25% 0.56% 0.2 100 Barclays US Agg Float Adj TR USD 0.16 4.03 3.96 2.47 4.17 US Treasury Note 3.625% 0.55% Universe(5%) 0.40 4.92 4.41 2.62 4.42 US Treasury Note 0.25% 0.53% Universe(25%) 0.18 4.06 3.83 2.25 3.91 US Treasury Note 4.75% 0.52% 0.1 50 Universe(Median) 0.13 4.02 3.77 2.20 3.84 US Treasury Note 0.5% 0.51% Universe(75%) 0.07 3.96 3.63 2.07 3.71 US Treasury Note 1.5% 0.51% Universe(95%) 0.03 3.84 3.50 1.95 3.59 Govt Natl Mtg Asso 3.5% 0.50% US Treasury Note 0.375% 0.50% 0.0 0 Prospectus Exp Ratio Turnover Ratio US Treasury Note 1.75% 0.46% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 27 25

Quarterly Investment Monitor Data as of 12/31/2014 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-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -2 Up/Down Market Capture Ratio -4 Jan-12 - Dec-14 160 -6 140 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Up Mkt Capture Ratio, % 120 Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 100 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 80 Vanguard Total Bond Market Index Signal 2.40 4.29 7.02 5.15 6.04 6.54 7.68 4.15 -2.15 NA Barclays US Agg Float Adj TR USD NA NA NA NA NA 6.58 7.92 4.32 -1.97 5.85 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 0.0 1.1 4 1.1 0 0 20 40 60 80 100 120 140 160 180 1.0 1.0 -0.1 Down Mkt Capture Ratio, % 0.9 0.9 Excess Annualized StdDev, % 3 Total Annualized StdDev, % 0.8 0.8 Morningstar IntermTerm Bond Index Universe Vanguard Total Bond Market Index Signal -0.2 Barclays US Agg Float Adj TR USD 0.7 0.7 Sharpe Ratio Alpha, % 0.6 0.6 -0.3 2 0.5 0.5 Return vs. Risk 0.4 0.4 -0.4 Oct-11 - Sep-14 0.3 0.3 4 1 -0.5 0.2 0.2 0.1 0.1 Total Annualized Return, % 3 -0.6 0.0 0 0.0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 2 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 1 Vanguard Total Bond Market Index Signal -0.17 1.01 99.36 0.83 2.71 0.22 Barclays US Agg Float Adj TR USD 0.00 1.00 100.00 0.90 2.67 0.00 Universe(5%) -0.13 1.15 99.56 0.84 3.11 0.92 0 Universe(25%) -0.26 1.01 99.47 0.80 2.71 0.30 0 1 2 3 4 5 Universe(Median) -0.31 1.00 99.33 0.78 2.69 0.22 Total Annualized StdDev, % Universe(75%) -0.41 1.00 98.81 0.75 2.67 0.19 Universe(95%) -0.53 0.98 95.46 0.71 2.64 0.18 Morningstar IntermTerm Bond Index Universe Vanguard Total Bond Market Index Signal Cash Barclays US Agg Float Adj TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 28 26

Quarterly Investment Monitor Data as of 12/31/2014 PIMCO Long Duration Total Return Instl 5.31 % Cash Portfolio Information Investment Strategy Summary 13.01 % US Stocks Ticker PLRIX Morningstar Category Long-term Bond The investment seeks maximum total return, consistent with prudent investment % Bonds management. The fund invests at least 65% of its total assets in a diversified portfolio of % Non-US Stocks Avg Mkt Cap $MM NA Fixed Income Instruments of varying maturities, which may be represented by forwards or % Pref Cat Med Mkt Cap $MM NA derivatives such as options, futures contracts or swap agreements. It invests primarily in % Conv Net Assets $MM 4767.95 investment grade debt securities, but may invest up to 10% of its total assets in high yield % Other Turnover Ratio 70.00 securities ("junk bonds") that are rated B or higher by Moody's, or equivalently rated by S&P % Non-US Bonds % Assets in Top 10 Holdings 26.08 or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. Total Number of Holdings 825.00 Manager Name Stephen A. Rodosky _________________________________________________________________________ Manager Tenure 7.42 80.50 Fund Incept Date 08/31/2006 Prospectus Exp Ratio 0.50 Phone Number 888-877-4626 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 5.31 20 % Canada 0.00 % US Stocks 0.06 % Latin America 0.00 % Bonds 80.50 18 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.53 Portfolio Ratings 16 Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.59 3 Year Mstar Rating 14 % Africa 0.00 % Non-US Bonds 13.01 % Rank Cat 3 Yr 35 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 12 % Rank Cat 5 Yr 25 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.00 % Rank Cat 10 Yr NA 10 % Asia - Emerging 0.00 8 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 6 Sector Allocation Credit Quality % Basic Materials 0.00 Avg Eff Duration 13.16 2 140 % Communication Services 0.00 Effective Maturity 20.61 4 % Consumer Cyclical 0.00 Avg Credit Quality NA % Consumer Defensive 0.00 AAA NA 120 2 % Healthcare 0.00 AA NA % Industrials 0.00 A NA 0 % Real Estate 0.00 BBB NA 3 Months YTD 1 Year 3 Years 5 Years 100 % Technology 0.00 BB NA % Energy 0.00 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 4.99 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 95.01 NR/NA NA 80 PIMCO Long Duration Total Return Instl BC Long Government/Credit 1 Turnover 60 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Cdx Ig22 5y Ice 7.74% PIMCO Long Duration Total Return Instl 5.06 19.02 19.02 6.27 9.70 US Treasury Bond 3.625% 3.11% 40 BC Long Government/Credit 5.60 19.31 19.31 5.77 9.81 US Treasury Bond 2.75% 3.06% Universe(5%) 5.26 19.33 19.33 6.79 10.02 US Treasury Bond 3.125% 2.13% Universe(25%) 4.66 15.99 15.99 6.30 9.29 Resolution Fdg Fed Bk Prin Stp 1.90% 20 Universe(Median) 2.64 12.19 12.19 5.75 8.20 U S Treas Bd Stripped Prin Pmt 1.87% Universe(75%) 1.56 7.77 7.77 3.44 6.28 US Treasury Bond 3.125% 1.75% Universe(95%) 0.92 3.80 3.80 1.17 3.92 US Treasury Bond 2.75% 1.59% Resolution Fdg Fed Bk Prin Stp 1.50% 0 0 Prospectus Exp Ratio Turnover Ratio AID 5.5% 1.43% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 29 27

Quarterly Investment Monitor Data as of 12/31/2014 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 Total Return, % 5 0 75 -5 -10 100 Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -15 -20 Up/Down Market Capture Ratio Jan-12 - Dec-14 -25 120 -30 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 100 Up Mkt Capture Ratio, % PIMCO Long Duration Total Return Instl BC Long Government/Credit 80 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 60 PIMCO Long Duration Total Return Instl NA NA 7.83 12.38 5.62 11.64 18.57 10.28 -8.56 19.02 BC Long Government/Credit 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 -8.83 19.31 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 2 9 7 0 -20 0 20 40 60 80 100 120 8 6 Down Mkt Capture Ratio, % 3 7 Total Annualized StdDev, % Excess Annualized StdDev, % 5 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl 2 6 BC Long Government/Credit Sharpe Ratio 4 Alpha, % 5 1 1 4 3 Return vs. Risk 0 3 Jan-12 - Dec-14 2 7 2 -1 1 6 1 Total Annualized Return, % -2 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 PIMCO Long Duration Total Return Instl BC Long Government/Credit 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 PIMCO Long Duration Total Return Instl 0.60 0.98 98.11 0.79 8.07 1.12 1 BC Long Government/Credit 0.00 1.00 100.00 0.72 8.18 0.00 Universe(5%) 3.94 1.00 99.34 1.48 8.20 6.38 0 Universe(25%) 2.36 0.86 93.71 1.08 7.39 4.95 0 1 2 3 4 5 6 7 8 9 Universe(Median) 0.69 0.50 84.86 0.82 4.63 4.50 Total Annualized StdDev, % Universe(75%) 0.13 0.47 74.49 0.71 4.34 2.20 Universe(95%) -1.87 0.27 53.42 0.31 3.25 0.69 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Cash BC Long Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 30 28

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard Long-Term Bond Index I % Cash Portfolio Information Investment Strategy Summary 13.85 % US Stocks Ticker VBLLX Morningstar Category Long-term Bond The investment seeks to track the performance of a market-weighted bond index with a % Bonds long-term dollar-weighted average maturity. The fund employs an indexing investment % Non-US Stocks Avg Mkt Cap $MM NA approach designed to track the performance of the Barclays U.S. Long Government/Credit % Pref Cat Med Mkt Cap $MM NA Float Adjusted Index. This index includes all medium and larger issues of U.S. government, % Conv Net Assets $MM 8516.37 investment-grade corporate, and investment-grade international dollar-denominated bonds % Other Turnover Ratio 50.00 that have maturities of greater than 10 years and are publicly issued. All of the fund's % Non-US Bonds % Assets in Top 10 Holdings 16.48 investments will be selected through the sampling process, and at least 80% of the fund's Total Number of Holdings 1860.00 assets will be invested in bonds held in the index. Manager Name Joshua C. Barrickman 85.42 Manager Tenure 1.85 _________________________________________________________________________ Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 0.70 20 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 85.42 18 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.03 Portfolio Ratings 16 Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 14 % Africa NA % Non-US Bonds 13.85 % Rank Cat 3 Yr 48 % Middle East NA 5 Year Mstar Rating % Japan NA 12 % Rank Cat 5 Yr 19 % Australasia NA 10 Year Mstar Rating NA % Asia - Developed NA % Rank Cat 10 Yr 50 10 % Asia - Emerging NA 8 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 6 Sector Allocation Credit Quality % Basic Materials NA Avg Eff Duration 14.44 2 140 % Communication Services NA Effective Maturity 24.20 4 % Consumer Cyclical NA Avg Credit Quality A % Consumer Defensive NA AAA 36.50 120 2 % Healthcare NA AA 7.03 % Industrials NA A 25.92 0 % Real Estate NA BBB 30.55 3 Months YTD 1 Year 3 Years 5 Years 100 % Technology NA BB 0.00 % Energy NA B 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities NA NR/NA 0.00 80 Vanguard Long-Term Bond Index I BC Long Government/Credit 1 Turnover 60 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Bond 3.625% 2.15% Vanguard Long-Term Bond Index I 5.55 19.87 19.87 5.81 9.85 US Treasury Bond 3.75% 1.96% 40 BC Long Government/Credit 5.60 19.31 19.31 5.77 9.81 US Treasury Bond 2.875% 1.85% Universe(5%) 5.26 19.33 19.33 6.79 10.02 US Treasury Bond 2.75% 1.71% Universe(25%) 4.66 15.99 15.99 6.30 9.29 US Treasury Bond 3.125% 1.71% 20 Universe(Median) 2.64 12.19 12.19 5.75 8.20 US Treasury Bond 3.625% 1.71% Universe(75%) 1.56 7.77 7.77 3.44 6.28 US Treasury Bond 2.75% 1.62% Universe(95%) 0.92 3.80 3.80 1.17 3.92 US Treasury Bond 3.125% 1.37% US Treasury Bond 4.25% 1.24% 0 0 Prospectus Exp Ratio Turnover Ratio US Treasury Bond 4.75% 1.15% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 31 29

Quarterly Investment Monitor Data as of 12/31/2014 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 Total Return, % 5 0 75 -5 -10 100 Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -15 -20 Up/Down Market Capture Ratio Jan-12 - Dec-14 -25 120 -30 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 100 Up Mkt Capture Ratio, % Vanguard Long-Term Bond Index I BC Long Government/Credit 80 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 60 Vanguard Long-Term Bond Index I 5.32 2.75 6.71 8.77 1.91 10.43 22.23 8.63 -9.01 19.87 BC Long Government/Credit 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 -8.83 19.31 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 2 9 7 0 -20 0 20 40 60 80 100 120 8 6 Down Mkt Capture Ratio, % 3 7 Total Annualized StdDev, % Excess Annualized StdDev, % 5 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I 2 6 BC Long Government/Credit Sharpe Ratio 4 Alpha, % 5 1 1 4 3 Return vs. Risk 0 3 Jan-12 - Dec-14 2 7 2 -1 1 6 1 Total Annualized Return, % -2 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 Vanguard Long-Term Bond Index I BC Long Government/Credit 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 Vanguard Long-Term Bond Index I -0.04 1.02 99.28 0.71 8.35 0.72 1 BC Long Government/Credit 0.00 1.00 100.00 0.72 8.18 0.00 Universe(5%) 3.94 1.00 99.34 1.48 8.20 6.38 0 Universe(25%) 2.36 0.86 93.71 1.08 7.39 4.95 0 1 2 3 4 5 6 7 8 9 Universe(Median) 0.69 0.50 84.86 0.82 4.63 4.50 Total Annualized StdDev, % Universe(75%) 0.13 0.47 74.49 0.71 4.34 2.20 Universe(95%) -1.87 0.27 53.42 0.31 3.25 0.69 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Cash BC Long Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 32 30

Quarterly Investment Monitor Data as of 12/31/2014 Ivy High Income I % Cash Portfolio Information Investment Strategy Summary 19.63 % US Stocks Ticker IVHIX Morningstar Category High Yield Bond The investment seeks to provide total return through a combination of high current income % Bonds and capital appreciation. The fund invests primarily in a diversified portfolio of high-yield, % Non-US Stocks Avg Mkt Cap $MM 2905.56 high-risk, fixed income securities, including secured and unsecured loan assignments, loan % Pref Cat Med Mkt Cap $MM 11040.97 participations and other loan instruments (loans), of U.S. and foreign issuers, the risks of 1.49 % Conv Net Assets $MM 8322.27 which are, in the judgment of the adviser consistent with the fund's objective. It invests % Other Turnover Ratio 75.00 primarily in lower quality debt securities, which include debt securities rated BBB+ or lower. % Non-US Bonds % Assets in Top 10 Holdings 12.56 Total Number of Holdings 362.00 78.53 Manager Name Chad A. Gunther _________________________________________________________________________ Manager Tenure 0.48 Fund Incept Date 07/31/1997 Prospectus Exp Ratio 0.69 Phone Number 800-777-6472 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 13.08 % Cash 0.00 12 % Canada 0.00 % US Stocks 0.04 % Latin America 0.00 % Bonds 78.53 10 % United Kingdom 86.92 % Non-US Stocks 0.29 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 8 Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.02 Mstar Rating % Europe - Emerging 0.00 % Other 1.49 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 19.63 % Rank Cat 3 Yr 7 6 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 2 4 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 2 % Asia - Emerging 0.00 2 0 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 0.00 Avg Eff Duration 3.54 2 160 -2 % Communication Services 0.00 Effective Maturity 5.16 % Consumer Cyclical 9.14 Avg Credit Quality B % Consumer Defensive 0.00 AAA 0.00 140 -4 % Healthcare 0.00 AA 0.00 % Industrials 0.00 A 1.20 -6 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB 0.55 % Technology 0.00 BB 17.41 % Energy 0.00 B 40.83 5th to 25th Percentile 25th to Median 100 Prospectus Exp Ratio % Financial Services 0.00 Below B 39.76 Median to 75th Percentile 75th to 95th Percentile % Utilities 90.86 NR/NA 0.25 Ratio Ivy High Income I BC High Yield Corporate Bond 1 80 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance 60 Months Date Year Years Years Misys Plc And Magic Newco Llc 2.52% Ivy High Income I -1.61 1.74 1.74 9.60 10.13 Laureate Educ 144A 9.25% 2.11% BC High Yield Corporate Bond -1.00 2.45 2.45 8.43 9.03 Onex Usi Acquisition 144A 7.75% 1.16% 40 Universe(5%) 0.73 4.08 4.08 10.14 9.74 Pinnacle Operating Corporation 144A 9% 1.05% Universe(25%) -0.56 2.41 2.41 8.26 8.53 Bakercorp Intl 144A 8.25% 1.02% Universe(Median) -1.29 1.81 1.81 7.66 8.06 Tmx Fin Llc/Titlemax Fin 144A 8.5% 1.02% 20 Universe(75%) -2.37 0.47 0.47 7.02 7.52 Jo-Ann Stores 144A 9.75% 1.01% Universe(95%) -4.60 -2.00 -2.00 4.71 6.07 Natl Finl Partners 144A 9% 0.90% Vtr Fin Bv 144A 6.875% 0.89% 0 0 Prospectus Exp Ratio Turnover Ratio Tenet Healthcare 8.125% 0.88% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 33 31

Quarterly Investment Monitor Data as of 12/31/2014 Ivy High Income I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 50 40 Total Return, % 75 20 100 0 Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Up/Down Market Capture Ratio -20 Jan-12 - Dec-14 140 -40 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 120 Up Mkt Capture Ratio, % Ivy High Income I BC High Yield Corporate Bond 100 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 80 Ivy High Income I 0.59 9.69 4.05 -19.73 46.56 15.62 6.44 17.16 10.46 1.74 60 BC High Yield Corporate Bond 2.74 11.85 1.87 -26.16 58.21 15.12 4.98 15.81 7.44 2.45 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 3 7 5 0 -50 0 50 100 150 200 250 300 6 Down Mkt Capture Ratio, % 2 4 Total Annualized StdDev, % Excess Annualized StdDev, % 5 Morningstar High Yield Universe Ivy High Income I 1 2 BC High Yield Corporate Bond 3 Sharpe Ratio 4 Alpha, % 0 3 Return vs. Risk 2 -1 1 Jan-12 - Dec-14 2 14 1 -2 12 1 10 Total Annualized Return, % -3 0 0 0 8 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 Ivy High Income I BC High Yield Corporate Bond 2 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 0 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -2 Ivy High Income I 2.56 0.82 92.10 2.37 3.88 1.38 -4 BC High Yield Corporate Bond 0.00 1.00 100.00 1.79 4.56 0.00 -6 Universe(5%) 1.75 1.23 98.83 2.12 6.89 4.12 -8 Universe(25%) 0.14 1.06 97.70 1.74 5.04 1.68 0 2 4 6 8 10 12 14 Universe(Median) -0.50 0.99 95.69 1.63 4.61 1.06 Total Annualized StdDev, % Universe(75%) -1.15 0.91 89.46 1.48 4.28 0.74 Universe(95%) -2.85 0.61 60.08 1.04 3.24 0.51 Morningstar High Yield Universe Ivy High Income I Cash BC High Yield Corporate Bond City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 34 32

Quarterly Investment Monitor Data as of 12/31/2014 American Funds Washington Mutual R6 1.40 1.71 % Cash Portfolio Information Investment Strategy Summary 8.19 % US Stocks Ticker RWMGX Morningstar Category Large Value The investment seeks to produce income and to provide an opportunity for growth of % Bonds principal consistent with sound common stock investing. The fund invests primarily in % Non-US Stocks Avg Mkt Cap $MM 92418.44 common stocks of established companies that are listed on, or meet the financial listing % Pref Cat Med Mkt Cap $MM 84087.07 requirements of, the New York Stock Exchange and have a strong record of earnings and % Conv Net Assets $MM 77000.34 dividends. Its advisor strives to maintain a fully invested, diversified portfolio, consisting % Other Turnover Ratio 19.00 primarily of high-quality common stocks. % Non-US Bonds % Assets in Top 10 Holdings 34.80 Total Number of Holdings 167.00 _________________________________________________________________________ Manager Name Alan N. Berro 88.70 Manager Tenure 17.51 Fund Incept Date 07/31/1952 Prospectus Exp Ratio 0.30 Phone Number 800-421-4225 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 91.55 % Cash 1.40 25 % Canada 2.42 % US Stocks 88.70 % Latin America 0.00 % Bonds 0.00 % United Kingdom 3.58 % Non-US Stocks 8.19 % Eurozone 0.54 % Pref 0.00 Portfolio Ratings 20 Total Annualized Return, % % Europe - ex Euro 1.77 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 1.71 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 52 % Middle East 0.00 5 Year Mstar Rating % Japan 0.13 15 % Rank Cat 5 Yr 12 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 27 % Asia - Emerging 0.00 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 3.91 Avg Eff Duration NA 2 180 % Communication Services 5.80 Effective Maturity NA 5 % Consumer Cyclical 11.26 Avg Credit Quality NA 160 % Consumer Defensive 9.89 AAA NA % Healthcare 10.95 AA NA % Industrials 19.89 A NA 140 0 % Real Estate 0.00 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 9.74 BB NA 120 % Energy 11.57 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 13.80 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 3.19 NR/NA NA Ratio 100 American Funds Washington Mutual R6 S&P 500 Value 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Microsoft Corp 5.62% 60 American Funds Washington Mutual R6 3.48 11.53 11.53 18.54 15.25 Home Depot Inc 4.37% S&P 500 Value 4.78 12.36 12.36 20.40 14.86 Boeing Co 4.26% Universe(5%) 6.51 14.16 14.16 23.51 16.82 40 Merck & Co Inc 3.96% Universe(25%) 4.76 12.19 12.19 20.59 14.82 Wells Fargo & Co 3.34% Universe(Median) 4.04 10.64 10.64 19.03 13.95 Royal Dutch Shell PLC ADR Class B 3.21% 20 Universe(75%) 2.78 8.68 8.68 17.02 12.58 Coca-Cola Co 2.60% Universe(95%) 0.33 4.67 4.67 13.56 10.48 Verizon Communications Inc 2.58% Lockheed Martin Corp 2.52% 0 0 Prospectus Exp Ratio Turnover Ratio American Express Co 2.35% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 35 33

Quarterly Investment Monitor Data as of 12/31/2014 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-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -30 Up/Down Market Capture Ratio -40 Jan-12 - Dec-14 180 -50 160 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 140 Up Mkt Capture Ratio, % American Funds Washington Mutual R6 S&P 500 Value 120 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 100 American Funds Washington Mutual R6 3.55 18.04 3.97 -33.10 19.24 13.69 7.35 12.85 32.34 11.53 80 S&P 500 Value 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 31.99 12.36 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 3 3 12 6 0 0 25 50 75 100 125 150 175 200 225 2 10 5 Down Mkt Capture Ratio, % Excess Annualized StdDev, % 1 Total Annualized StdDev, % Morningstar Large Value Universe American Funds Washington Mutual R6 2 8 4 S&P 500 Value 0 Sharpe Ratio Alpha, % -1 6 3 Return vs. Risk -2 1 4 2 Jan-12 - Dec-14 -3 30 2 1 -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 2.27 0.79 88.30 2.15 8.08 3.41 5 S&P 500 Value 0.00 1.00 100.00 1.99 9.59 0.00 Universe(5%) 2.07 1.11 97.44 2.13 11.48 5.46 0 Universe(25%) 0.74 1.03 95.28 1.99 10.29 3.60 0 2 4 6 8 10 12 14 16 18 20 Universe(Median) -0.32 0.97 92.92 1.88 9.65 2.76 Total Annualized StdDev, % Universe(75%) -1.78 0.90 87.95 1.72 8.93 2.18 Universe(95%) -4.64 0.73 75.07 1.36 8.00 1.63 Morningstar Large Value Universe American Funds Washington Mutual R6 Cash S&P 500 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 36 34

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard Growth Index I 1.16 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VIGIX Morningstar Category Large Growth The investment seeks to track the performance of a benchmark index that measures the % Bonds investment return of large-capitalization growth stocks. The fund employs an indexing % Non-US Stocks Avg Mkt Cap $MM 54903.95 investment approach designed to track the performance of the CRSP U.S. Large Cap Growth % Pref Cat Med Mkt Cap $MM 71799.63 Index, a broadly diversified index predominantly made up of growth stocks of large U.S. % Conv Net Assets $MM 45061.93 companies. It attempts to replicate the target index by investing all, or substantially all, of % Other Turnover Ratio 32.00 its assets in the stocks that make up the index, holding each stock in approximately the % Non-US Bonds % Assets in Top 10 Holdings 22.74 same proportion as its weighting in the index. Total Number of Holdings 369.00 Manager Name Gerard C. O'Reilly _________________________________________________________________________ Manager Tenure 20.01 98.15 Fund Incept Date 11/02/1992 Prospectus Exp Ratio 0.08 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 98.83 % Cash 0.69 25 % Canada 0.12 % US Stocks 98.15 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 1.16 % Eurozone 0.79 % Pref 0.00 Portfolio Ratings 20 Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 28 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 15 % Rank Cat 5 Yr 14 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 22 % Asia - Emerging 0.26 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 3.10 Avg Eff Duration NA 2 300 % Communication Services 3.77 Effective Maturity NA 5 % Consumer Cyclical 17.26 Avg Credit Quality NA % Consumer Defensive 7.38 AAA NA 250 % Healthcare 13.43 AA NA % Industrials 10.89 A NA 0 % Real Estate 5.09 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 25.92 BB NA 200 % Energy 6.53 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 6.52 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.10 NR/NA NA Ratio Vanguard Growth Index I CRSP US Large Cap Growth TR USD 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Apple Inc 7.85% 100 Vanguard Growth Index I 5.08 13.62 13.62 20.75 16.02 Coca-Cola Co 1.95% CRSP US Large Cap Growth TR USD 5.10 13.69 13.69 19.95 14.98 Facebook Inc Class A 1.73% Universe(5%) 6.90 16.41 16.41 23.74 17.59 Google Inc Class C 1.72% Universe(25%) 5.50 13.14 13.14 21.16 15.63 Google Inc Class A 1.71% 50 Universe(Median) 4.61 10.61 10.61 19.63 14.30 Gilead Sciences Inc 1.67% Universe(75%) 3.48 8.43 8.43 18.11 13.15 Walt Disney Co 1.58% Universe(95%) 1.49 3.70 3.70 15.23 10.51 Oracle Corporation 1.56% Philip Morris International Inc 1.50% 0 0 Prospectus Exp Ratio Turnover Ratio Home Depot Inc 1.47% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 37 35

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard Growth Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 50 20 Total Return, % 75 0 100 -20 Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Up/Down Market Capture Ratio -40 Jan-12 - Dec-14 300 -60 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 250 Up Mkt Capture Ratio, % Vanguard Growth Index I CRSP US Large Cap Growth TR USD 200 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 150 Vanguard Growth Index I 5.24 9.16 12.73 -38.19 36.50 17.17 1.89 17.04 32.41 13.62 CRSP US Large Cap Growth TR USD 6.40 10.32 15.66 -38.67 35.92 15.77 0.58 15.20 31.75 13.69 100 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 3 14 7 0 0 25 50 75 100 125 150 175 200 225 2 12 6 Down Mkt Capture Ratio, % Excess Annualized StdDev, % 1 Total Annualized StdDev, % 10 5 Morningstar Large Growth Universe Vanguard Growth Index I 2 CRSP US Large Cap Growth TR USD 0 Sharpe Ratio 8 4 Alpha, % -1 6 3 Return vs. Risk -2 1 Jan-12 - Dec-14 4 2 -3 50 45 -4 2 1 40 Total Annualized Return, % -5 0 0 0 35 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 30 Vanguard Growth Index I CRSP US Large Cap Growth TR USD 25 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 20 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 15 Vanguard Growth Index I 0.74 1.00 99.76 1.92 10.14 0.50 10 CRSP US Large Cap Growth TR USD 0.00 1.00 100.00 1.85 10.16 0.00 5 Universe(5%) 2.97 1.19 96.26 2.05 13.27 6.49 0 Universe(25%) 1.09 1.09 93.74 1.86 11.64 4.23 0 5 10 15 20 25 Universe(Median) -0.20 1.01 90.45 1.72 10.85 3.46 Total Annualized StdDev, % Universe(75%) -1.98 0.95 86.52 1.56 10.16 2.71 Universe(95%) -4.78 0.83 74.44 1.29 9.27 2.05 Morningstar Large Growth Universe Vanguard Growth Index I Cash CRSP US Large Cap Growth TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 38 36

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard Mid Cap Index Adm 2.31 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VIMAX Morningstar Category Mid-Cap Blend The investment seeks to track the performance of a benchmark index that measures the % Bonds investment return of mid-capitalization stocks. The fund employs an indexing investment % Non-US Stocks Avg Mkt Cap $MM 11160.27 approach designed to track the performance of the CRSP U.S. Mid Cap Index, a broadly % Pref Cat Med Mkt Cap $MM 7217.71 diversified index of stocks of mid-size U.S. companies. It attempts to replicate the target % Conv Net Assets $MM 58927.74 index by investing all, or substantially all, of its assets in the stocks that make up the index, % Other Turnover Ratio 32.00 holding each stock in approximately the same proportion as its weighting in the index. % Non-US Bonds % Assets in Top 10 Holdings 6.81 Total Number of Holdings 376.00 _________________________________________________________________________ Manager Name Donald M. Butler Manager Tenure 16.62 97.41 Fund Incept Date 05/21/1998 Prospectus Exp Ratio 0.09 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 97.69 % Cash 0.28 25 % Canada 0.32 % US Stocks 97.41 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.66 % Non-US Stocks 2.31 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 20 Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 20 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 15 % Rank Cat 5 Yr 10 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.62 % Rank Cat 10 Yr 9 % Asia - Emerging 0.71 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 5.74 Avg Eff Duration NA 3 300 % Communication Services 1.70 Effective Maturity NA 5 % Consumer Cyclical 18.46 Avg Credit Quality NA % Consumer Defensive 7.34 AAA NA 250 % Healthcare 10.57 AA NA % Industrials 14.38 A NA 0 % Real Estate 5.83 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 14.89 BB NA 2 200 % Energy 5.75 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 10.24 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 5.10 NR/NA NA Ratio Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Vertex Pharmaceuticals Inc 0.85% 1 100 Vanguard Mid Cap Index Adm 6.64 13.76 13.76 21.27 17.04 Health Care REIT, Inc. 0.72% CRSP US Mid Cap TR USD 6.65 13.83 13.83 21.57 17.36 Avago Technologies Ltd 0.71% Universe(5%) 8.65 14.80 14.80 24.13 18.10 United Continental Holdings Inc 0.69% Universe(25%) 6.66 10.53 10.53 20.90 16.26 Delphi Automotive PLC 0.66% 50 Universe(Median) 5.72 7.81 7.81 19.42 15.17 Mylan Inc 0.66% Universe(75%) 3.63 5.59 5.59 17.15 14.18 AvalonBay Communities Inc 0.64% Universe(95%) 0.60 1.16 1.16 12.43 9.96 Moody's Corporation 0.64% Chipotle Mexican Grill Inc Class A 0.62% 0 0 Prospectus Exp Ratio Turnover Ratio Seagate Technology PLC 0.62% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 39 37

Quarterly Investment Monitor Data as of 12/31/2014 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-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -20 Up/Down Market Capture Ratio -40 Jan-12 - Dec-14 225 -60 200 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 175 Up Mkt Capture Ratio, % Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD 150 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 125 Vanguard Mid Cap Index Adm 14.04 13.69 6.17 -41.78 40.48 25.59 -1.97 15.99 35.15 13.76 100 CRSP US Mid Cap TR USD 13.31 15.32 7.04 -41.83 36.90 26.16 -1.79 16.69 35.27 13.83 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 2 3 14 8 0 0 25 50 75 100 125 150 175 200 225 250 1 12 7 Down Mkt Capture Ratio, % 0 Excess Annualized StdDev, % 6 Total Annualized StdDev, % 10 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm -1 2 CRSP US Mid Cap TR USD 5 -2 Sharpe Ratio 8 Alpha, % -3 4 6 Return vs. Risk -4 3 1 Jan-12 - Dec-14 -5 4 2 40 -6 2 1 35 -7 Total Annualized Return, % 30 -8 0 0 0 25 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 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 Mid Cap Index Adm -0.39 1.01 99.89 1.90 10.48 0.36 CRSP US Mid Cap TR USD 0.00 1.00 100.00 1.94 10.40 0.00 5 Universe(5%) 1.83 1.20 96.18 2.01 13.59 7.18 0 Universe(25%) -0.66 1.08 94.57 1.75 11.95 4.73 0 5 10 15 20 25 Universe(Median) -2.53 1.02 90.28 1.64 11.29 3.73 Total Annualized StdDev, % Universe(75%) -3.61 0.94 85.01 1.51 10.32 2.76 Universe(95%) -7.18 0.73 69.63 1.21 8.57 2.22 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm Cash CRSP US Mid Cap TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 40 38

Quarterly Investment Monitor Data as of 12/31/2014 Target Small Capitalization Value T 3.74 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker TASVX Morningstar Category Small Value The investment seeks above-average capital appreciation. The Portfolio seeks investments % Bonds that will increase in value. It normally invests at least 80% of its investable assets in % Non-US Stocks Avg Mkt Cap $MM 2167.60 common stocks of small companies. Small companies are those companies with market % Pref Cat Med Mkt Cap $MM 2501.20 capitalizations comparable to those in the Russell 2000 Value Index. Market capitalization is % Conv Net Assets $MM 2114.90 measured at the time of purchase. % Other Turnover Ratio NA % Non-US Bonds % Assets in Top 10 Holdings 7.40 _________________________________________________________________________ Total Number of Holdings 776.00 Manager Name Paul E. Viera Manager Tenure 13.01 95.23 Fund Incept Date 01/05/1993 Prospectus Exp Ratio 0.68 Phone Number 800-225-1852 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 99.02 % Cash 3.74 25 % Canada 0.52 % US Stocks 95.23 % Latin America 0.20 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 0.94 20 % Eurozone 0.05 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.09 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 53 15 % Middle East 0.20 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 33 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 8 10 % Asia - Emerging 0.00 5 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 6.05 Avg Eff Duration NA 2 180 % Communication Services 0.85 Effective Maturity NA 0 % Consumer Cyclical 12.29 Avg Credit Quality NA 160 % Consumer Defensive 3.47 AAA NA % Healthcare 8.78 AA NA % Industrials 17.64 A NA 140 -5 % Real Estate 6.33 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 13.15 BB NA 120 % Energy 3.98 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 23.69 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 3.77 NR/NA NA Ratio 100 Target Small Capitalization Value T S&P 600 Value 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Webster Financial Corp 0.84% 60 Target Small Capitalization Value T 7.25 5.89 5.89 17.98 15.10 American Equity Investment Life Holding Co 0.82% S&P 600 Value 10.44 7.54 7.54 21.18 16.96 Firstmerit Corp 0.76% Universe(5%) 11.17 8.88 8.88 21.95 18.39 40 Amsurg Corp 0.74% Universe(25%) 9.11 6.34 6.34 19.67 15.73 Littelfuse Inc 0.73% Universe(Median) 7.04 4.64 4.64 18.20 15.06 Teleflex Inc 0.73% 20 Universe(75%) 4.53 2.19 2.19 16.34 13.36 Silgan Holdings Inc 0.72% Universe(95%) 0.63 -4.47 -4.47 12.65 9.41 KAR Auction Services Inc 0.71% EnerSys 0.70% 0 0 Prospectus Exp Ratio Turnover Ratio Bristow Group Inc 0.64% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 41 39

Quarterly Investment Monitor Data as of 12/31/2014 Target Small Capitalization Value T Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 50 20 Total Return, % 75 0 100 -20 Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Up/Down Market Capture Ratio -40 Jan-12 - Dec-14 120 -60 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 100 Up Mkt Capture Ratio, % Target Small Capitalization Value T S&P 600 Value 80 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 60 Target Small Capitalization Value T 10.10 17.72 0.52 -27.45 26.69 23.63 -0.48 14.14 35.87 5.89 S&P 600 Value 6.45 19.57 -5.54 -29.51 22.85 24.72 -1.38 18.21 39.98 7.54 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 16 10 0 0 20 40 60 80 100 120 140 2 9 14 Down Mkt Capture Ratio, % 8 1 Excess Annualized StdDev, % 12 Total Annualized StdDev, % Morningstar SmallCap Value Universe Target Small Capitalization Value T 7 0 S&P 600 Value 10 6 Sharpe Ratio Alpha, % -1 1 8 5 -2 Return vs. Risk 4 6 -3 Jan-12 - Dec-14 3 4 30 -4 2 -5 2 25 1 Total Annualized Return, % -6 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Target Small Capitalization Value T S&P 600 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 Target Small Capitalization Value T -0.32 0.87 95.15 1.50 11.51 3.01 5 S&P 600 Value 0.00 1.00 100.00 1.56 12.85 0.00 Universe(5%) 2.92 1.06 97.09 1.70 14.61 9.10 0 Universe(25%) 0.02 0.99 94.99 1.50 13.29 4.90 0 2 4 6 8 10 12 14 16 18 Universe(Median) -1.18 0.94 92.21 1.40 12.57 3.70 Total Annualized StdDev, % Universe(75%) -2.31 0.88 86.86 1.27 11.83 2.98 Universe(95%) -5.95 0.71 65.73 1.05 9.98 2.21 Morningstar SmallCap Value Universe Target Small Capitalization Value T Cash S&P 600 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 42 40

Quarterly Investment Monitor Data as of 12/31/2014 Oppenheimer International Growth Y 2.172.29 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker OIGYX Morningstar Category Foreign Large Growth The investment seeks capital appreciation. The fund mainly invests in the common stock of % Bonds growth companies that are domiciled or have their primary operations outside of the United % Non-US Stocks Avg Mkt Cap $MM 15120.79 States. It may invest 100% of its assets in securities of foreign companies. The fund may % Pref Cat Med Mkt Cap $MM 30926.07 invest in emerging markets as well as in developed markets throughout the world. It % Conv Net Assets $MM 18448.81 normally will invest at least 65% of its total assets in common and preferred stocks of % Other Turnover Ratio 12.00 issuers in at least three different countries outside of the United States, and emphasize % Non-US Bonds % Assets in Top 10 Holdings 14.75 investments in common stocks of issuers that the portfolio managers consider to be "growth" Total Number of Holdings 107.00 companies. Manager Name George R. Evans Manager Tenure 18.78 _________________________________________________________________________ Fund Incept Date 03/25/1996 94.77 Prospectus Exp Ratio 0.90 Phone Number 800-225-5677 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 2.24 % Cash 2.29 20 % Canada 3.30 % US Stocks 2.17 % Latin America 1.91 % Bonds 0.00 % United Kingdom 26.06 % Non-US Stocks 94.77 15 % Eurozone 36.90 % Pref 0.01 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 19.52 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.76 3 Year Mstar Rating 10 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 18 % Middle East 0.00 5 Year Mstar Rating % Japan 4.65 % Rank Cat 5 Yr 8 5 % Australasia 2.38 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 1 % Asia - Emerging 3.03 0 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality -5 % Basic Materials 4.49 Avg Eff Duration NA 2 180 % Communication Services 6.88 Effective Maturity NA % Consumer Cyclical 22.63 Avg Credit Quality NA -10 160 % Consumer Defensive 15.42 AAA NA % Healthcare 10.07 AA NA % Industrials 20.02 A NA 140 -15 % Real Estate 0.00 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 14.89 BB NA 120 % Energy 0.87 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 4.72 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 NR/NA NA Ratio 100 Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Continental AG 1.63% 60 Oppenheimer International Growth Y -1.05 -6.99 -6.99 12.52 8.78 BT Group PLC 1.52% MSCI EAFE Large Growth NR USD -2.71 -4.70 -4.70 10.90 5.99 SAP SE 1.51% Universe(5%) 0.20 1.27 1.27 15.03 8.83 40 Dollarama Inc 1.48% Universe(25%) -1.93 -3.68 -3.68 11.66 6.26 Roche Holding AG Dividend Right Cert. 1.48% Universe(Median) -3.66 -5.67 -5.67 10.34 5.08 Burberry Group PLC 1.45% 20 Universe(75%) -4.82 -7.18 -7.18 8.81 4.02 Novo Nordisk A/S Class B 1.43% Universe(95%) -7.30 -11.54 -11.54 6.59 1.69 Royal Boskalis Westminster NV 1.42% Heineken NV 1.41% 0 0 Prospectus Exp Ratio Turnover Ratio Syngenta AG 1.41% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 43 41

Quarterly Investment Monitor Data as of 12/31/2014 Oppenheimer International Growth Y Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 50 20 Total Return, % 75 0 100 -20 Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Up/Down Market Capture Ratio -40 Jan-12 - Dec-14 225 -60 200 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 175 Up Mkt Capture Ratio, % Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD 150 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 125 Oppenheimer International Growth Y 14.24 30.18 12.93 -41.22 38.44 15.35 -7.31 22.10 25.46 -6.99 100 MSCI EAFE Large Growth NR USD 13.89 20.44 19.51 -41.74 28.81 11.48 -12.04 17.06 22.28 -4.70 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 5 2 16 7 0 0 25 50 75 100 125 150 175 200 225 4 14 6 Down Mkt Capture Ratio, % 3 Excess Annualized StdDev, % 12 Total Annualized StdDev, % 5 Morningstar Foreign Stock Universe Oppenheimer International Growth Y 2 MSCI EAFE Large Growth NR USD 10 Sharpe Ratio 4 Alpha, % 1 1 8 0 3 Return vs. Risk 6 -1 Jan-12 - Dec-14 2 4 18 -2 1 16 -3 2 Total Annualized Return, % 14 -4 0 0 0 12 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 10 Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD 8 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 6 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 4 Oppenheimer International Growth Y 1.88 0.96 91.39 1.00 12.60 3.72 MSCI EAFE Large Growth NR USD 0.00 1.00 100.00 0.89 12.50 0.00 2 Universe(5%) 4.10 1.11 95.53 1.16 14.89 6.69 0 Universe(25%) 1.11 1.04 94.27 0.94 13.51 4.58 0 5 10 15 20 25 30 Universe(Median) -0.56 0.99 91.92 0.81 12.99 3.75 Total Annualized StdDev, % Universe(75%) -1.73 0.95 89.13 0.71 12.42 3.10 Universe(95%) -3.78 0.86 79.30 0.56 11.35 2.72 Morningstar Foreign Stock Universe Oppenheimer International Growth Y Cash MSCI EAFE Large Growth NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 44 42

Quarterly Investment Monitor Data as of 12/31/2014 American Funds New Perspective R6 4.87 6.61 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker RNPGX 43.78 Morningstar Category World Stock The investment seeks long-term growth of capital; future income is a secondary objective. % Bonds The fund seeks to take advantage of investment opportunities generated by changes in % Non-US Stocks Avg Mkt Cap $MM 55046.83 international trade patterns and economic and political relationships by investing in common % Pref Cat Med Mkt Cap $MM 42571.58 stocks of companies located around the world. In pursuing its primary investment objective, % Conv Net Assets $MM 56599.95 it invests primarily in common stocks that the investment adviser believes have the % Other Turnover Ratio 25.00 potential for growth. In pursuing its secondary objective, the fund invests in common stocks % Non-US Bonds % Assets in Top 10 Holdings 18.34 of companies with the potential to pay dividends in the future. Total Number of Holdings 291.00 Manager Name Gregg E. Ireland _________________________________________________________________________ Manager Tenure 22.10 44.64 Fund Incept Date 03/13/1973 Prospectus Exp Ratio 0.45 Phone Number 800-421-4225 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 49.51 % Cash 4.87 20 % Canada 2.33 % US Stocks 43.78 % Latin America 0.64 % Bonds 0.11 % United Kingdom 7.43 % Non-US Stocks 44.64 % Eurozone 13.94 % Pref 0.00 Portfolio Ratings 15 Total Annualized Return, % % Europe - ex Euro 12.32 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 6.61 3 Year Mstar Rating % Africa 1.75 % Non-US Bonds 0.00 % Rank Cat 3 Yr 15 % Middle East 0.00 5 Year Mstar Rating % Japan 6.79 10 % Rank Cat 5 Yr 29 % Australasia 0.91 10 Year Mstar Rating % Asia - Developed 3.59 % Rank Cat 10 Yr 10 % Asia - Emerging 0.78 5 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 5.63 Avg Eff Duration NA 3 180 % Communication Services 1.24 Effective Maturity NA 0 % Consumer Cyclical 16.56 Avg Credit Quality NA 160 % Consumer Defensive 11.17 AAA NA % Healthcare 16.22 AA NA % Industrials 12.92 A NA 140 -5 % Real Estate 0.00 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 17.24 BB NA 2 120 % Energy 4.25 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 14.77 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 NR/NA NA Ratio 100 American Funds New Perspective R6 MSCI AC World Index ND USD Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Novo Nordisk A/S 5.09% 1 60 American Funds New Perspective R6 1.82 3.56 3.56 16.88 10.85 Amazon.com Inc 2.53% MSCI AC World Index ND USD 0.41 4.16 4.16 14.10 9.17 Microsoft Corp 1.72% Universe(5%) 3.51 10.26 10.26 19.33 12.55 40 Home Depot Inc 1.40% Universe(25%) 2.27 4.88 4.88 16.48 11.02 Delta Air Lines Inc 1.37% Universe(Median) 0.68 2.57 2.57 14.51 9.87 Bayer AG 1.33% 20 Universe(75%) -1.04 0.11 0.11 12.57 7.70 Gilead Sciences Inc 1.23% Universe(95%) -4.62 -3.94 -3.94 3.99 3.23 Naspers Ltd Class N 1.23% AIA Group Ltd 1.22% 0 0 Prospectus Exp Ratio Turnover Ratio United Continental Holdings Inc 1.22% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 45 43

Quarterly Investment Monitor Data as of 12/31/2014 American Funds New Perspective R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 50 20 Total Return, % 75 0 100 -20 Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Up/Down Market Capture Ratio -40 Jan-12 - Dec-14 140 -60 120 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 100 Up Mkt Capture Ratio, % American Funds New Perspective R6 MSCI AC World Index ND USD 80 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 60 American Funds New Perspective R6 11.28 19.87 16.03 -37.83 37.72 13.11 -7.33 21.19 27.23 3.56 40 MSCI AC World Index ND USD 10.84 20.95 11.66 -42.20 34.63 12.67 -7.35 16.13 22.80 4.16 20 0 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error -20 6 2 16 9 -40 0 25 50 75 100 125 150 175 200 225 250 4 14 8 Down Mkt Capture Ratio, % 2 7 Excess Annualized StdDev, % 12 Total Annualized StdDev, % Morningstar World Stock Universe American Funds New Perspective R6 0 6 MSCI AC World Index ND USD 10 Sharpe Ratio Alpha, % -2 5 1 8 -4 4 Return vs. Risk 6 -6 3 Jan-12 - Dec-14 4 25 -8 2 20 -10 2 1 15 Total Annualized Return, % -12 0 0 0 10 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 2.90 0.97 93.98 1.53 10.60 2.63 -20 MSCI AC World Index ND USD 0.00 1.00 100.00 1.29 10.64 0.00 -25 Universe(5%) 4.80 1.19 95.17 1.64 14.95 8.74 -30 Universe(25%) 2.55 1.07 91.60 1.43 12.42 5.61 0 5 10 15 20 25 30 Universe(Median) 0.64 0.99 86.29 1.28 11.36 4.25 Total Annualized StdDev, % Universe(75%) -1.14 0.94 78.16 1.10 10.58 3.34 Universe(95%) -10.10 0.67 53.97 0.40 8.34 2.45 Morningstar World Stock Universe American Funds New Perspective R6 Cash MSCI AC World Index ND USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 46 44

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard Emerging Mkts Stock Idx I 1.79 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VEMIX Morningstar Category Diversified Emerging Mkts The investment seeks to track the performance of a benchmark index that measures the % Bonds investment return of stocks issued by companies located in emerging market countries. The % Non-US Stocks Avg Mkt Cap $MM 18851.65 fund employs an indexing investment approach by investing substantially all (approximately % Pref Cat Med Mkt Cap $MM 18804.85 95%) of its assets in the common stocks included in the FTSE Emerging Index, while % Conv Net Assets $MM 62465.33 employing a form of sampling intended to reduce risk. The FTSE Emerging Index includes % Other Turnover Ratio 9.00 approximately 851 common stocks of companies located in emerging markets around the % Non-US Bonds % Assets in Top 10 Holdings 14.66 world. Total Number of Holdings 979.00 Manager Name Michael Perre _________________________________________________________________________ Manager Tenure 6.34 97.67 Fund Incept Date 05/04/1994 Prospectus Exp Ratio 0.12 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 0.14 % Cash 0.41 10 % Canada 0.00 % US Stocks 0.13 % Latin America 18.46 % Bonds 0.00 8 % United Kingdom 0.00 % Non-US Stocks 97.67 % Eurozone 0.06 % Pref 1.79 Portfolio Ratings 6 Total Annualized Return, % % Europe - ex Euro 0.03 % Conv 0.00 Mstar Rating % Europe - Emerging 8.72 % Other 0.00 3 Year Mstar Rating 4 % Africa 9.75 % Non-US Bonds 0.00 % Rank Cat 3 Yr 49 % Middle East 1.01 5 Year Mstar Rating 2 % Japan 0.00 % Rank Cat 5 Yr 48 % Australasia 0.00 10 Year Mstar Rating 0 % Asia - Developed 15.09 % Rank Cat 10 Yr 34 % Asia - Emerging 46.74 -2 -4 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality -6 % Basic Materials 8.70 Avg Eff Duration NA 3 225 % Communication Services 8.74 Effective Maturity NA -8 % Consumer Cyclical 7.83 Avg Credit Quality NA 200 % Consumer Defensive 8.46 AAA NA -10 % Healthcare 2.53 AA NA % Industrials 5.36 A NA 175 -12 % Real Estate 2.66 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 15.35 BB NA 2 150 % Energy 8.47 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 27.97 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 3.93 NR/NA NA Ratio 125 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD Turnover 100 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Tencent Holdings Ltd 2.11% 1 75 Vanguard Emerging Mkts Stock Idx I -3.67 0.67 0.67 4.38 1.96 China Mobile Ltd 1.84% FTSE Emerging NR USD -3.49 1.21 1.21 4.61 2.06 Taiwan Semiconductor Manufacturing Co Ltd 1.77% Universe(5%) -1.85 2.42 2.42 8.18 5.33 50 China Construction Bank Corp H Shares 1.56% Universe(25%) -3.41 -0.37 -0.37 6.09 2.98 Taiwan Semiconductor Manufacturing Co Ltd ADR 1.40% Universe(Median) -4.60 -3.30 -3.30 4.42 2.08 Industrial And Commercial Bank Of China Ltd H Shares 1.39% 25 Universe(75%) -6.09 -5.13 -5.13 2.55 0.23 Naspers Ltd Class N 1.33% Universe(95%) -10.02 -8.57 -8.57 -1.21 -4.17 Hon Hai Precision Ind Co Ltd 1.14% Bank Of China Ltd. H Shares 1.11% 0 0 Prospectus Exp Ratio Turnover Ratio America Movil SAB de CV Class L 1.01% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 47 45

Quarterly Investment Monitor Data as of 12/31/2014 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-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -40 Up/Down Market Capture Ratio -60 Jan-12 - Dec-14 225 -80 200 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 175 Up Mkt Capture Ratio, % Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD 150 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 125 Vanguard Emerging Mkts Stock Idx I 32.35 29.57 39.15 -52.74 76.35 19.06 -18.63 18.90 -4.99 0.67 100 FTSE Emerging NR USD 34.70 32.84 39.41 -53.03 82.15 19.60 -19.15 17.58 -3.79 1.21 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 4 0.7 20 8 0 0 25 50 75 100 125 150 175 200 225 3 18 0.6 7 Down Mkt Capture Ratio, % 2 16 Excess Annualized StdDev, % 6 Total Annualized StdDev, % 1 0.5 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I 14 FTSE Emerging NR USD 0 5 12 Sharpe Ratio 0.4 Alpha, % -1 10 4 -2 0.3 Return vs. Risk 8 -3 3 6 Jan-12 - Dec-14 -4 0.2 2 14 -5 4 12 0.1 1 -6 2 10 Total Annualized Return, % -7 0.0 0 0 8 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 6 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD 4 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 0 Vanguard Emerging Mkts Stock Idx I -0.18 0.99 98.50 0.35 15.68 1.92 -2 FTSE Emerging NR USD 0.00 1.00 100.00 0.36 15.69 0.00 -4 Universe(5%) 3.93 1.13 97.85 0.62 18.66 7.17 -6 Universe(25%) 1.89 0.99 95.99 0.47 16.06 5.26 0 5 10 15 20 25 30 35 Universe(Median) 0.03 0.96 93.92 0.36 15.36 4.30 Total Annualized StdDev, % Universe(75%) -2.04 0.90 90.81 0.22 14.67 3.20 Universe(95%) -6.34 0.83 82.03 0.04 13.74 2.33 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Cash FTSE Emerging NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 48 46

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard REIT Index I % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VGSNX Morningstar Category Real Estate The investment seeks to provide a high level of income and moderate long-term capital % Bonds appreciation by tracking the performance of a benchmark index that measures the % Non-US Stocks Avg Mkt Cap $MM 9411.37 performance of publicly traded equity REITs. The fund employs an indexing investment % Pref Cat Med Mkt Cap $MM 11766.25 approach designed to track the performance of the MSCI U.S. REIT Index. The index is % Conv Net Assets $MM 50657.54 composed of stocks of publicly traded equity real estate investment trusts (known as REITs). % Other Turnover Ratio 11.00 The fund attempts to replicate the index by investing all, or substantially all, of its assets in % Non-US Bonds % Assets in Top 10 Holdings 37.81 the stocks that make up the index, holding each stock in approximately the same proportion Total Number of Holdings 145.00 as its weighting in the index. Manager Name Gerard C. O'Reilly Manager Tenure 18.65 _________________________________________________________________________ 99.91 Fund Incept Date 05/13/1996 Prospectus Exp Ratio 0.08 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 0.09 35 % Canada 0.00 % US Stocks 99.91 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 0.00 30 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating 25 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 15 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 12 20 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 26 % Asia - Emerging 0.00 15 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 10 % Basic Materials 0.00 Avg Eff Duration NA 2 180 % Communication Services 0.00 Effective Maturity NA % Consumer Cyclical 0.00 Avg Credit Quality NA 5 160 % Consumer Defensive 0.00 AAA NA % Healthcare 0.00 AA NA % Industrials 0.93 A NA 140 0 % Real Estate 99.07 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 0.00 BB NA 120 % Energy 0.00 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 0.00 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 NR/NA NA Ratio 100 Vanguard REIT Index I MSCI US REIT NR USD 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Simon Property Group Inc 8.35% 60 Vanguard REIT Index I 14.29 30.28 30.28 16.24 17.03 Public Storage 4.09% MSCI US REIT NR USD 13.95 28.82 28.82 14.96 15.70 Equity Residential 3.62% Universe(5%) 15.46 31.69 31.69 17.35 17.95 40 Health Care REIT, Inc. 3.54% Universe(25%) 14.69 31.10 31.10 16.01 16.90 Prologis Inc 3.14% Universe(Median) 14.14 29.76 29.76 15.44 16.38 AvalonBay Communities Inc 3.13% 20 Universe(75%) 13.54 28.02 28.02 15.10 15.55 Ventas Inc 3.13% Universe(95%) 7.91 16.89 16.89 13.34 12.21 HCP Inc 3.05% Boston Properties Inc 2.95% 0 0 Prospectus Exp Ratio Turnover Ratio Vornado Realty Trust 2.80% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 49 47

Quarterly Investment Monitor Data as of 12/31/2014 Vanguard REIT Index I 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-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 -30 Up/Down Market Capture Ratio -40 Jan-12 - Dec-14 140 -50 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 120 Up Mkt Capture Ratio, % Vanguard REIT Index I MSCI US REIT NR USD 100 Annual Return % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 80 Vanguard REIT Index I 12.05 35.15 -16.38 -36.95 29.76 28.56 8.70 17.65 2.48 30.28 60 MSCI US REIT NR USD NA 34.18 -17.84 -39.05 26.27 26.97 7.48 16.47 1.26 28.82 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 6 2 14 8 0 -20 0 20 40 60 80 100 120 140 160 5 12 7 Down Mkt Capture Ratio, % Excess Annualized StdDev, % 6 Total Annualized StdDev, % 4 10 Morningstar Real Estate Universe Vanguard REIT Index I MSCI US REIT NR USD 5 Sharpe Ratio 3 8 Alpha, % 1 4 2 6 Return vs. Risk 3 Jan-12 - Dec-14 1 4 2 30 0 2 1 25 Total Annualized Return, % -1 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard REIT Index I MSCI US REIT NR 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 REIT Index I 1.14 1.00 99.98 1.20 13.28 0.21 5 MSCI US REIT NR USD 0.00 1.00 100.00 1.11 13.30 0.00 Universe(5%) 5.48 1.01 99.62 1.65 13.49 7.95 0 Universe(25%) 2.06 0.99 99.26 1.27 13.22 2.68 0 2 4 6 8 10 12 14 16 18 20 Universe(Median) 1.00 0.97 98.55 1.18 12.96 1.70 Total Annualized StdDev, % Universe(75%) 0.52 0.91 96.71 1.15 12.33 1.18 Universe(95%) -0.26 0.63 73.95 1.05 10.62 0.89 Morningstar Real Estate Universe Vanguard REIT Index I Cash MSCI US REIT NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 50 48

Quarterly Investment Monitor Data as of 12/31/2014 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 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 measured by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative risk. Specifically, the higher the percentage, the more concentrated the fund is in a few companies or issues, and the more the fund is alpha indicates the portfolio has underperformed, given the expectations established by beta. susceptible to 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 shorter maturities and higher coupons shorten duration. The relationship between funds with different durations is straightforward: A theory, 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 fund with a duration of 10 years is twice as volatile as a fund with a five-year duration. Morningstar prints an average effective duration that the stock is a bargain. statistic 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 Average effective maturity is a weighted average of all the effective maturities of the bonds in a portfolio. Effective maturity takes into current price of the stock by its trailing 12 months’ earnings per share. In computing the average, Morningstar weights each portfolio holding consideration mortgage prepayments, puts, calls, adjustable coupons, and other features of individual bonds and is thus a more by the percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund’s final P/E. accurate 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 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 in its benchmark index. An R-squared measure of 35, for example, means that only 35% of the fund’s movements can be explained by fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other factors movements in 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. 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 It can be used to compare two portfolios directly on how much excess return each portfolio achieved for a certain level of risk. one 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 variation. The greater the variation, the larger the penalty. Funds are ranked within their categories and stars are assigned as follows: varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that is Top 10% five stars; Next 22.5% four stars; Middle 35% three stars; Next 22.5% two stars; Bottom 10% one star. most 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 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 are not included in the expense ratio. more 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 Geometric Average Market Capitalization available fund 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 Expressed in percentage terms, Morningstar’s calculation of total return is determined each month by taking the change in monthly net asset reported as average market capitalization. value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAV. Reinvestments are made This number is different from the fund's median market cap--the capitalization of the median stock in its portfolio. The geometric mean using 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 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, that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the agility, and popularity. They help determine whether a small company fund, for example, can remain in its investment-objective category portfolio’s holdings that have changed over the past year. if its 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 DOCUMENT PAGE 51 49

Quarterly Investment Monitor Data as of 12/31/2014 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 DOCUMENT PAGE 52 50

Stein, Jody Subject: FW: Annual Review Meeting Summary (proposed fee changes) From: Virginia.Karablacas@wellsfargo.com [mailto:Virginia.Karablacas@wellsfargo.com] Sent: Wednesday, January 28, 2015 12:10 PM To: Mitchell, Donna Subject: RE: Annual Review Meeting Summary (proposed fee changes) Donna, As a follow up to our brief discussion, please see the responses to your questions below. I mentioned to you in December when we met that your accounts were scheduled for review in mid‐2015, and I was granted approval to expedite this analysis based on your inquiry. We are committed to evaluating our fees on a periodic basis. Thank you for the opportunity to work through this with you. Let me know if you have any further questions at this time. Virginia From: Virginia.Karablacas@wellsfargo.com [mailto:Virginia.Karablacas@wellsfargo.com] Sent: Monday, January 26, 2015 1:20 PM To: Mitchell, Donna Subject: FW: Annual Review Meeting Summary (fee review) Donna, Just to confirm, I have the three items below as your items in question. If there are additional items, kindly advise. Thank you.  Review basis point fees in light of asset size We reviewed the 3 accounts we currently have with the City of Dover, and propose the following fee structure  For the Employee and Pension assets  3 basis points on the first $50 MM  2 basis points on the next $50 MM  1 basis point over $100 MM  For the OPEB  3 basis points on the first $50 MM  2 basis points on the next $50 MM  1 basis point over $100 MM This results in an 8% fee decrease. 1

 Postage rate @ $0.49 vs bulk rate We propose changing the distribution rate to a flat $2.35.  Advices – is this all or nothing, or can retirees opt‐out? Retirees can opt‐out if they do not wish to obtain an advice. Virginia Karablacas Relationship Manager | Vice President Wells Fargo Institutional Retirement and Trust 123 S. Broad Street, 7th Floor | MAC Y1379-070 | Philadelphia, PA 19109 Tel (215) 670-7735 | Cell (267) 634-9329 | Fax (215) 670-7791 virginia.karablacas@wellsfargo.com  Please consider the environment before printing this email. This electronic mail message contains information from Wells Fargo Bank, which is confidential and privileged information. If you are not the intended recipient, please be aware that any disclosure, photocopying, distribution or use of the contents of the received information is prohibited. If you have received this email in error, please reply to the sender immediately and permanently delete this message and all copies of it. If you no longer wish to receive these emails, please notify the sender. Thank you. From: Mitchell, Donna [mailto:DMitchell@dover.de.us] Sent: Thursday, December 18, 2014 8:43 AM To: Karablacas, Virginia; Peddicord, Lori Cc: Peddicord, Lori Subject: RE: Annual Review Meeting Summary Virginia, Thank you for the follow up and the exceptional customer service you provide to the City of Dover. Both Lori and I enjoyed our discussions as well. It’s very relaxing to take time to talk about our joys with our families. I have reached out to Jeff Marzinsky, Milliman and he has requested we remove Matt Albano from access to reports. We would also like to have Peggy Teal removed as well. Our wishes to you for a Merry Christmas and a Joyful New Year. Donna From: Virginia.Karablacas@wellsfargo.com [mailto:Virginia.Karablacas@wellsfargo.com] Sent: Wednesday, December 17, 2014 5:11 PM To: Mitchell, Donna; Peddicord, Lori Subject: Annual Review Meeting Summary Donna and Lori, It was so nice to see you both today, and a pleasure to meet Lori. It is nice to have time away from our work environments to catch up on both personal and work related items. 2

I wanted to summarize the key items we discussed, and the take‐a‐way items I noted during our discussion. Value for Cost I am pleased to hear that you feel the service you are receiving from Wells Fargo is meeting your expectations, and that the services for cost are aligned. I completely understand the Committee’s request to review our fees for due diligence purposes and because of asset growth. As discussed, this was scheduled on my end for mid‐2015; however, I will move this up to early January 2015. It was good to hear that the Committee decided to postpone the RFP process at this time.  Review basis point fees in light of asset size  Postage rate @ $0.49 vs bulk rate  Advices – is this all or nothing, or can retirees opt‐out? Electronic Statement Recipients The following individuals are currently set up for TID and TPR online reports. Kindly confirm if any changes are necessary. Peggy’s access has been deactivated; therefore, she does not have access to reports even though she is listed below. I have already submitted a request to have Peggy deleted from TID and TPR. 1. Matt Albano 2. Pamela Mayo 3. Katie Heffington 4. Lori Peddicord 5. Donna Mitchell 6. Peggy Teal OneSource  I will submit the request to have Lori added for access to One Source.  On 12/1/2014, I sent a reminder to Katie asking her to log into the system before 12/31/2014. Custody of Operating Cash The RFP for these services is underway and responses are due January 9, 2015. Thank you for including Wells Fargo in your search! OPEB Milliman had decided, and the Committee approved, eliminating PIMCO from the account. If I missed anything, or if there is anything else you need at this time, please let me know. I enjoyed hearing about your children and grandchildren and comparing notes on their Christmas wish list items. I am glad to know that the wish list items from my godchildren is in line with others  . Wishing you a very happy and safe holiday season! Virginia Virginia Karablacas Relationship Manager | Vice President Wells Fargo Institutional Retirement and Trust 123 S. Broad Street, 7 Floor | MAC Y1379-070 | Philadelphia, PA 19109 th Tel (215) 670-7735 | Cell (267) 634-9329 | Fax (215) 670-7791 virginia.karablacas@wellsfargo.com 3

 Please consider the environment before printing this email. This electronic mail message contains information from Wells Fargo Bank, which is confidential and privileged information. If you are not the intended recipient, please be aware that any disclosure, photocopying, distribution or use of the contents of the received information is prohibited. If you have received this email in error, please reply to the sender immediately and permanently delete this message and all copies of it. If you no longer wish to receive these emails, please notify the sender. Thank you. 4