Anexo

CIVILIAN PENSION BOARD AGENDA NOVEMBER 14, 2013 - 11:00 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. Approval of Minutes - Civilian Pension Board Meeting of August 8, 2013 2. Quarterly Performance Review (Quarter Ending September 30, 2013) (Milliman, Inc.) (Staff Recommends Acceptance of the Report) 3. History - Approval of Routine Applications for Retirement 4. Adjournment 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\Misc-Agendas\PENSION BOARDS\2013\11-14-2013 CIVILIAN PENSION BOARD AGENDA.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.

CIVILIAN PENSION BOARD The Civilian Pension Board meeting was held on August 8, 2013 at 2:00 p.m. with Chairman Bonar presiding. Members present were Councilman Lynn (arrived at 2:07 p.m.), Mr. Blakeman, Mr. Clendaniel, Mrs. Hettinger, Mr. Koenig, and Mrs. Mitchell. AGENDA ADDITIONS/DELETIONS Mrs. Mitchell moved to add “and Staff Recommendations” to Agenda Item #4, Investment Manager Recommendations. Mr. Blakeman moved to approve the agenda as amended, seconded by Mr. Clendaniel and unanimously carried. Adoption of Minutes - Civilian Pension Board Meeting of May 9, 2013 Mrs. Hettinger moved for adoption of the minutes of the Civilian Pension Board Meeting of May 9, 2013, seconded by Mr. Blakeman and unanimously carried. Organizational Issues - Election of Chair Mr. Bonar opened the floor for nominations for Chair of the Civilian Pension Board. Mr. Clendaniel moved to nominate Mr. Lynn to serve as Chair, seconded by Mr. Blakeman. Mr. Blakeman moved to close nominations, seconded by Mrs. Hettinger and unanimously carried. The motion to elect Mr. Lynn as Chair of the Civilian Pension Board was unanimously carried. Quarterly Performance Review (Quarter Ending June 30, 2013) (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, Milliman, Inc., reviewed Item #1 of the Investment Committee Meeting Notes - 8/8/2013 Memo included with the Quarterly Investment Monitor Summary Report for the Quarter Ending June 30, 2013. He noted that the plan assets as of the end of the quarter were approximately $30M, an increase from the previous balance of approximately $25M. He advised members that a large contribution was made at the end of the quarter which pushed the plan out of the allocation targets; however, the funds were rebalanced immediately after the end of the quarter and would be in line for the next quarter. The plan return was close to the portfolio benchmark but slightly negative, which was driven by negative bond returns and troubled emerging markets during the quarter. Otherwise, performance was in line with the target benchmark, there were no problems with investment managers, and no changes in managers were recommended. Investment Manager and Staff Recommendations Referring to Item #2 of the Investment Committee Meeting Notes - 8/8/2013 Memo included with the Quarterly Investment Monitor Summary Report for the Quarter Ending June 30, 2013, Mr. Marzinsky stated that at least once per year Milliman updates market expectations. He reviewed the Optimization Input Review, noting the expected returns for each asset category, as well as the expected volatility. He explained that long-term bonds and emerging markets were potential areas

CIVILIAN PENSION BOARD MEETING OF AUGUST 8, 2013 PAGE 2 of risk and that it was advisable to reduce long-term bond exposure in light of rising interest rates; therefore, some changes in asset allocation were recommended. Referring to the Portfolio Options chart, Mr. Marzinsky reviewed the recommended adjustments outlined in the Customized Alternative Portfolio column, which reflected the 40% funded status indicated in Amendment II to the Investment Policy for the City of Dover Employees’ Pension Board. He indicated that long duration bond and emerging market exposure would be tapered back in this scenario. Some of the long-term bonds would be reallocated to other fixed income investments within the plan, lowering the duration. Similarly, on the equity side, exposure would be reduced to emerging markets and these assets would be reallocated among other stock investments within the plan. The overall 61% equity to 39% fixed income allocation would be maintained. Mr. Marzinsky noted that high-yield investments would be introduced in this portfolio, since these shorter duration investments with lower credit quality would be less susceptible to interest rate adjustments. He explained that the expected return would be approximately the same, the potential risk would increase slightly, and the portfolio would be kept within the guidelines that were previously developed. Referring to Item #3 of the Investment Committee Meeting Notes - 8/8/2013 Memo, Mr. Marzinsky recommended selection of Ivy High-Income I as fund manager of the high-yield investments, noting that this fund had the best return of the funds reviewed, as well as the best rank in the asset category and the lowest level of volatility over three (3) and five (5) years. He noted that the high-yield portfolios reviewed focused on average on B-rated corporate bonds. No other changes to the managers of investments in the portfolio were recommended at this time. Mrs. Hettinger moved to approve Amendment II to the Investment Policy Statement for the City of Dover Employees’ Pension Board, seconded by Mr. Lynn and unanimously carried. Mrs. Mitchell moved to invest in Ivy High-Income I as a new fund. The motion was seconded by Mr. Blakeman and unanimously carried. Mrs. Mitchell explained that it was staff’s recommendation that the Investment Policy for the Civilian Pension Trust be reviewed annually, similar to the City of Dover Investment Policy. She suggested that this be done each August. Mr. Blakeman moved to amend the Investment Policy for the City of Dover Employees’ Pension Board to include a statement that the City of Dover Employees’ Pension Plan investment policy be adopted by the Board of Trustees. The policy will be reviewed with the Investment Manager at least once every year by the Board of Trustees, which is charged with considering the existing policy and any recommendations to modify the policy. The motion was seconded by Mr. Stallings and carried unanimously. (City Clerk’s Office Note: Subsequent to the meeting, the Investment Policy for the City of Dover Employees’ Pension Board was revised to include this statement as well as Amendment II (Attachment #1).

CIVILIAN PENSION BOARD MEETING OF AUGUST 8, 2013 PAGE 3 Audit Procedures Mr. Bill Seymour, SB and Company, LLC, (City Auditor) reviewed a presentation entitled, “City of Dover, Year Ended June 30, 2012, Meeting with Pension Board - August 8, 2013.” He noted that SB & Company, LLC had issued an unqualified opinion for the June 30, 2012 City of Dover financial statements, which was the best opinion that could be issued under generally accepted auditing standards and indicated that the financial statements were reasonably free of material misstatement. Mr. Seymour noted that although the pension funds were legally separate from the City, for accounting purposes they were considered part of the overall reporting package since the City had fiduciary responsibility to review and report on the funds. He noted that the pension information was fully scoped within the financial statement audit and was included in the auditor’s unqualified opinion. Referring to the cover letter included in the Financial Section, Part A, Report of Independent Public Accountants included in the 2012 Comprehensive Annual Financial Report (CAFR), Mr. Blakeman noted the inclusion of the following statement: Accounting principles generally accepted in the United States of America require that management’s discussion and analysis, the general fund - schedule of revenues, expenditures, and changes in fund balance - budget and actual, the governmental capital projects fund - schedule of revenues, expenditures and changes in fund balance - budget and actual, and required supplemental schedules of funding progress and schedules of employer contributions for the Pension Plans Funds and Other Post Employment Plan, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context . . . We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with evidence sufficient to express an opinion or provide any assurance. Mr. Blakeman requested clarification from Mr. Seymour regarding the audit procedures in regard to the Civilian Pension Fund. Mr. Seymour explained that the Required Supplemental Information included in the CAFR is actuarial information that shows the funding status of the plan and the amount of historical contributions. This is additional information that is required to be disclosed but is not part of the basic financial statements. However, the CAFR includes a statement of net assets of the plan, including the investments, the investment valuation as of June 30th, and any liabilities that the plan would have, as well as a statement of changes in net assets in the plan. The income statement included shows investment income, contributions, and interest dividends, as well as benefit payments and any administrative expenses. Mr. Seymour noted that all of this information is included in the audit, as well as supplemental information that is not part of the audit but is required to be disclosed by management, similar to the statistical section of the CAFR which includes information related to the City (e.g., population, etc.) that is not audited or required to be audited.

CIVILIAN PENSION BOARD MEETING OF AUGUST 8, 2013 PAGE 4 Noting that the Combining Statement of Pension Trust Fund Net Assets on Page 124 of the CAFR was included in the Required Supplementary Information section, Mr. Blakeman inquired if this meant that this information was not audited or reviewed by SB & Company, LLC, and if the firm would, therefore, not make statements about it. Mr. Seymour stated that the Police Pension Fund and the General Employees’ Pension Fund were examined individually to ensure that they were not materially misstated and then, for financial reporting purposes, they were combined, and that is what is shown in the basic financial statements, (the audited section) of the CAFR. Mrs. Mitchell explained that staff and the auditors check to make sure that the numbers in the combined report agree with the numbers in the supplemental information. Mr. Seymour advised members that the auditor examines whether financial statements are materially correct and this is a two (2) part process that includes: 1) examining the processes and controls that management has put into place to produce an accurate set of financial statements; and 2) substantive testing to ensure that the investment valuations conform with third-party valuations to make sure that the numbers in the financial statements are correct. Mr. Seymour reviewed the steps of a Risk-Based Audit Approach, noting that the idea is to focus on the operations, how management controls risks, and the ultimate effect of misstatement on the financial statements, as well as if there were any additional items that should be brought to the attention of the City. He noted that no pension- specific items were identified. Mr. Seymour noted SB & Company determined that the City’s performance was effective in all five (5) categories relating to evaluation and assessment of control environment, which is the best term that the auditor uses, as were the design and operation of key processes and functions. He noted that the audit performed was not a fraud audit; however, explained that SB& Company was required to maintain a healthy skepticism and look for fraud. Mr. Blakeman noted that he was recently informed that Board members had fiduciary responsibilities for the General Employees’ Pension Fund and, as such, he felt that members could be held accountable. He posed a number of questions related to the administration of the plan, including who handles the process of retirement, who checks to see if it has been handled correctly, how the payer is notified that the retiree needs to be paid, and how it is ensured that the list of names submitted to the payer is the same list that the City holds for those who should be getting checks. He questioned how the City was notified when someone dies, whether the City verifies that checks are being issued only to those who are entitled to receive them, how checks are written, who has to sign them, and whether checks require two (2) party or one (1) party signatures. He indicated that a list of new retirees was issued every six (6) months, but members did not receive a list of those who are deceased. He questioned whether the audit by SB & Company would cover these issues. Mr. Seymour stated that each of these items could potentially affect the amounts reported in the financial statements; therefore, the processes and controls that management uses to process benefits were considered, including whether management was doing what must be done to ensure that a reasonable process and reasonable controls were in place to prevent and/or detect material errors.

CIVILIAN PENSION BOARD MEETING OF AUGUST 8, 2013 PAGE 5 He indicated that all items mentioned by Mr. Blakeman were examined as part of the audit in terms of the information reported in the financial statements. Decisions regarding the frequency of reviewing items such as deaths (e.g., weekly, monthly, etc.) would be made by management and the auditor would consider whether these types of decisions were reasonable. He stated that decisions from a performance standpoint may differ; however, he indicated that SB & Company did not see anything that was “out of line.” In regard to the fiduciary role of board members, Mr. Seymour stated that, in his experience, liabilities were related to board members who acted according to what was best for their own interests. He was unsure if the City carried Directors and Officers (D & O) liability insurance for volunteer board members, which he stated was relatively inexpensive and would protect board members who served as volunteers and were not being fully compensated and noted that this might be something that the City would choose to look at if not covered within the City’s current insurance policies. Mrs. Mitchell explained that she was covered as a staff member but was unsure if volunteer board members were covered. Mr. Blakeman noted that he had come across instances where problems emerged due to negligence in procedures and it was discovered that a board had not done due diligence to ensure that there were not errors or a lack of appropriate policies. Mr. Seymour felt that holding discussions like the current one and walking through audit procedures was a deterrent toward improper action and provided an incentive for management to do things correctly. He advised members that he had seen instances where boards were completely negligent, didn’t ask questions, and ignored problems raised by auditors. He felt that requiring an external audit and examining insurance from a protection standpoint were appropriate. He noted that additional audits could be performed; however, he did not know that there would be much “bang for the buck” in conducting an audit above and beyond the work that is done by SB & Company. However, he noted that circumstances, including investment performance, could change tomorrow and this could then be more important. Mrs. Hettinger stated her discomfort with the Pension Board. She noted that she recently came to City Hall with a mentally challenged employee who retired and she was able to assist him in making changes that would benefit him in two (2) instances. She stated that the Civilian Board members currently had no interaction with the employees who vote them into office and that this responsibility had been taken away. She noted that previously when an employee retired, a meeting was held by the Human Resources and Finance Departments, the Pension Board, the retiring employee, and the City Manager. All items were reviewed before the Pension Board, and if they felt this employee was not getting a fair share, the Board was present to speak up for them. She stated that this no longer happened and that the Board had only financial responsibility. Mrs. Hettinger felt that some employees may not understand the retirement process and expressed her desire to represent these individuals. She felt that the Board members were not helping employees as members had in the past and that they might just as well be appointed rather than elected. She was unsure how, when, and by whom the former process was changed and felt that this should be examined.

CIVILIAN PENSION BOARD MEETING OF AUGUST 8, 2013 PAGE 6 Mrs. Mitchell stated that the process Mrs. Hettinger described had not been in effect in the City since at least the year 2000. She noted that the Board was formerly provided a copy of the pension application. The Board subsequently recommended that only a list be provided and agreed that the list would be provided after the fact because they were basically providing only a “stamp of approval,” since calculations were being done and no changes were being made. Mrs. Mitchell recalled that it had been difficult to schedule meetings and obtain a quorum of Pension Board members to approve retirement applications, especially when employees retired without providing much notice. Mr. Blakeman stated that the majority of employees who retire do not have the ability to calculate their average salary for the last three years and only receive a piece of paper saying what it is. Mr. Bonar noted that the State of Delaware has a simple way to determine this information through the State pension website. The employee can add the income earned for the last three (3) years and a pension amount based on the number of years and a retirement plan is generated. He was unsure what the cost of the program was, whether it would be worth the City’s while to invest in it, or whether the City could “piggyback” off the State’s system. Mr. Koenig reminded members that the General Employees’ Pension Plan was phasing out; therefore, such a program would not be applicable to everyone. He felt it would not apply to the Police Department. Mrs. Hettinger questioned how the family of a deceased employee would know what benefits they were entitled to. Mrs. Hawkins, Human Resources Director, stated that she had been in Human Resources since 2000 or 2001 and did not recall attending meetings with employees, Board members, and a member of Human Resources; however, she did recall meetings when the pension application was read into the record and approved by the Board. She concurred that obtaining a quorum of Civilian Pension Board members was a concern. She stated that the Human Resources Department takes great pride in ensuring that employees are educated when they retire and that time is taken to explain the numbers to employees. Before changing over to ADP, staff provided yearly statements to employees in the defined benefit plan so they knew exactly how much was contributed to the plan, which correlated to their check stubs. Mrs. Hawkins advised members that it takes a good deal of time for Human Resources staff to do pension calculations. Documents are reviewed with the employee and explained, and employees are shown the Code and directed to the website to review it further. They are educated on how the numbers are calculated and information is provided to take home, review, and analyze with a spouse, and they are encouraged to return with any questions. Staff goes out of their way to provide the customer service that employees need to retire because it is a huge decision. She acknowledged that there is not the same opportunity for due diligence when employees retire on very short notice. Mrs. Hawkins stated that she was familiar with the State web application for calculating pensions and, from her recollection, the employee must enter their annual salary (the application does not pull from payroll records), must estimate when they plan to retire and their years of service, and the application does a general calculation. She stated that she could provide

CIVILIAN PENSION BOARD MEETING OF AUGUST 8, 2013 PAGE 7 this information for employees since the calculation is based on 2% for every year of service. Mrs. Hawkins emphasized that Human Resources staff is available to anyone who needs assistance. Mrs. Mitchell stated that Human Resources is also available for spouses and families of deceased employees and walks through every step with them. Mr. Blakeman concurred that his retirement was spelled out exactly by Human Resources staff and their calculations agreed with his personal calculations. His concern was that employees are often intimidated by the setting and reluctant to ask questions or challenge determinations. He felt that prior to 2000, employees felt that they could sit with people they elected to the Board, talk to them separately, and raise questions that they might not be comfortable raising. He acknowledged the problems related to timing in terms of getting a quorum together. Mr. Seymour noted that no complaints were identified in the audit regarding retirement amounts. He suggested that an email box be created to which only the Board would have access to allow them the ability to review concerns brought forward by retiring employees. Employees could then have access to board members and members could decide how they wish to adjudicate these matters. Mrs. Hettinger stated that the Human Resources Department did an excellent job; however, some employees at the street level did not believe that management was in their corner. She noted that many individuals in the Civilian Pension Plan were older employees who do not trust middle and upper-level staff. Mr. Bonar suggested that this topic could be added to a future agenda if members wished to discuss it in further detail. Mr. Lynn suggested that the Clerk’s Office be asked to provide a history of the changes that had occurred by researching the minutes of the meetings that reflect the change in procedure that occurred in approximately 2000 and was described by Mrs. Hettinger. Responding to Mr. Blakeman regarding the need for a risk-based audit, Mr. Seymour stated that, based upon the information he had seen, he did not feel that there was a need for an additional audit at this point. He felt that, from the Board’s perspective, members should consider and communicate to management what retirees were telling them since information and communication was a key component of evaluating and assessing the control environment during the audit procedure. If numerous complaints were being received about pay, this would reveal a symptomatic problem that should be investigated further; however, absent that, there was no “smoking gun” that would indicate that this should be investigated further. Mr. Blakeman noted, as stated in the presentation, that it was SB & Company’s responsibility to “approach all audits with an understanding that fraud could occur in any entity, at any time, by anyone.” Since a risk audit had never been done, he questioned if this should be done at least once to say that it had been done, even though no complaints had been received.

CIVILIAN PENSION BOARD MEETING OF AUGUST 8, 2013 PAGE 8 Mr. Seymour explained that this verbiage was the standard for the audit that SB & Company was required to do and not necessarily something that Board members would be held to. He felt that the determining factor was how much money the Board wished to spend versus the inherent benefit, considering there were no constituent complaints or any indication of a problem. Mr. Blakeman inquired if an affirming statement could be put in the CAFR cover letter to indicate what was done for the Pension Fund, including a statement that samples were taken and examined. Mr. Seymour stated that the opinion referenced that the audit was completed in accordance with generally accepted auditing standards and that the wording was considered standard and could not expand very much unless there were an issue. Mr. Blakeman stated that he felt much better after the discussion and would not recommend a risk audit at this point. He noted that he would be asking separately about insurance concerns. Mr. Seymour encouraged Mr. Blakeman to contact him if he had concerns about the plan. Scheduling of Future Meeting Dates Mr. Blakeman moved to tentatively schedule meetings for the Civilian Pension Board on November 14, 2013; February 13, 2014; May 8, 2014; and August 14, 2014 at 11:00 a.m. The motion was seconded by Mrs. Hettinger and unanimously carried. By unanimous consent, the meeting adjourned at 3:12 p.m. David L. Bonar Chair DLB/JS/dd/tm S:\AGENDAS-MINUTES-PACKETS\Misc-Minutes\PENSION\2013\08-08-2013 Civilian Pension.wpd Attachment Attachment #1 - Investment Policy for the City of Dover Employees’ Pension Board, as amended

ATTACHMENT #1 Civilian Pension Board Meeting of 08/08/2013 INVESTMENT POLICY CITY OF DOVER EMPLOYEES’ PENSION BOARD August 8, 2013

TABLE OF CONTENTS INTRODUCTION ....................................................................................................................................................... 3 PURPOSES OF THE STATEMENT....................................................................................................................... 3 PLAN DESCRIPTION ............................................................................................................................................ 3 PORTFOLIO MANAGEMENT PRECEPTS .......................................................................................................... 3 PRUDENCE IN INVESTMENT ............................................................................................................................. 4 RESPONSIBILITIES OF THE BOARD AND STAFF .......................................................................................... 4 RESPONSIBILITIES OF THE INVESTMENT MANAGER(S)............................................................................ 5 RESPONSIBILITIES OF THE PLAN CUSTODIAN(S) ........................................................................................ 5 INVESTMENT OBJECTIVES.................................................................................................................................. 6 INVESTMENT POLICY ........................................................................................................................................... 8 ASSET ALLOCATION ........................................................................................................................................... 8 ALLOCATION MONITORING/REBALANCING ................................................................................................ 8 LIQUIDITY ............................................................................................................................................................. 9 PROXY VOTING .................................................................................................................................................... 9 DIVERSIFICATION ............................................................................................................................................... 9 MUTUAL FUNDS ................................................................................................................................................... 9 INVESTMENT GUIDELINES .................................................................................................................................. 9 GENERAL GUIDELINES ...................................................................................................................................... 9 DOMESTIC EQUITY INVESTMENT GUIDELINES ........................................................................................ 10 Specific Guidelines, Domestic Equity .................................................................................................................... 10 INTERNATIONAL EQUITY INVESTMENT GUIDELINES ............................................................................ 11 Specific Guidelines, International Equity............................................................................................................... 11 DOMESTIC FIXED INCOME INVESTMENT GUIDELINES ........................................................................... 12 Specific Guidelines, Domestic Intermediate Term Fixed Income .......................................................................... 12 REVIEW PROCEDURES........................................................................................................................................ 14 SIGNATURES ........................................................................................................................................................... 15 AMENDMENT I ....................................................................................................................................................... 16 AMENDMENT II ..................................................................................................................................................... 18 2

City of Dover Employees’ Pension Board Investment Policy Statement Pension Plan INTRODUCTION PURPOSES OF THE STATEMENT Based upon and in keeping with requirements of City of Dover officials and Employees’ Pension Plan participants serving as members of the Employees’ Pension Board of the City of Dover (“Board”) under Section 2-202 of the City of Dover Code of Ordinances, this Investment Policy Statement (“Statement”) presents investment objectives, policies, guidelines, and monitoring and review procedures relating to financial assets (the “Fund”) of the City of Dover Employees’ Pension Plan (“Plan”). The Statement’s purposes are to: 1. Present appropriate goals and objectives relating to investment management of the Fund. 2. Recognize and/or specify diversification and liquidity requirements and identify any legal constraints affecting investment management of the Fund. 3. Promulgate guidelines, consistent with any Board-selected investment time horizon(s), investment management classifications, and/or investment management styles, to which any Board-appointed Investment Manager (IM) shall adhere when determining investment strategies, making periodic investment decisions, and/or undertaking specific investment transactions relating to the Fund. 4. Establish standards and procedures for monitoring, measuring, reviewing, and absolutely and comparatively evaluating IM investment performance, along with similar standards and procedures for assuring conformity with investment policies, goals, objectives, guidelines, and/or constraints. 5. Foster understanding and effective communications between the Board and Staff and any persons appointed, employed, designated or in any way called upon by the Board or Staff to serve the Plan and its participants and/or beneficiaries. PLAN DESCRIPTION The Plan is a public employee retirement plan governed by the City of Dover Code of Ordinances as cited within “Purposes of the Statement,” above. PORTFOLIO MANAGEMENT PRECEPTS The Board endorses contemporary investment practices, based upon the construction of well diversified multi-asset portfolios, which facilitate control of investment risk and afford reasonably predictable long- term investment returns, primarily by IM selection which maintain distinct investment practices or “styles” within any asset class. The monitoring and appropriate investment performance measurement respecting such styles requires relative comparisons among peers and to chosen (usually index) benchmarks as well as absolute measures respecting the financial progress of the Plan itself. 3

PRUDENCE IN INVESTMENT Applicable terms, conditions, limitations and restrictions of applicable law upon Delaware fiduciaries notwithstanding, any IM serving the Fund shall discharge any duties relating to the Fund solely in the interest of Plan participants and beneficiaries, shall demonstrate appropriate knowledge of the Plan’s purpose and contemporary operations, and shall diversify the investments of any Fund investment portfolio so as to minimize the risk of substantial loss. When contemplating any investment, investment strategy or investment program, any IM managing any part of the Fund shall consider all relevant factual and circumstantial information and the impact of such information on a particular investment, strategy, or program, and on the Total Fund. Further, respecting investment strategies, programs and/or specific investment actions for the Fund, any IM shall also consider: 1. potential losses and gains, 2. the composition of any IM-assigned portfolio, and the Total Fund, with regard to a. diversification b. liquidity and current return relative to the Fund’s cash flow requirements c. projected total return relative to the Plan's funding objectives Guidelines respecting Prudence have been developed in light of investment objectives related solely to the Plan’s varied and dynamic obligations to its participants and beneficiaries. Actuarial, economic, investment, and even socio-political events and trends are fluid factors affecting the funding of those obligations. Accordingly, these guidelines respecting Prudence are, as a part of this Statement, intended singularly to present broad and balanced considerations to guide incumbent and successor Board and Staff, and all other parties concerned, seeking appropriate allocation, investment, safekeeping, monitoring and evaluation of the Fund. RESPONSIBILITIES OF THE BOARD AND STAFF The Board is charged under Section 18-51 of the City of Dover Code of Ordinances with overall responsibility for investment of the Fund. To assist the Board in this function, it is authorized and permitted by said Ordinances to appoint an IM or IM(s), including for this purpose banks, insurance companies, and firms registered under the Investment Advisers Act of 1940 and/or Delaware State law, to manage (including the power to acquire and dispose of) Plan assets. Any appointed IM must agree to conduct itself in accordance with all applicable City of Dover Ordinances. The Board must also develop prudent management policies and guidelines intended to assure that the Plan will fulfill its objectives. Policies and guidelines are inclusive of, but not restricted to: 1. Establishment of investment objectives, investment policy, investment guidelines, and monitoring and review procedures. 2. Establishment of standards for measuring, monitoring, evaluating and comparing absolute and relative investment performance to assure that investment returns are reviewed on a regular basis and investment return objectives are met during acceptable periods of time. 4

3. Establishment of authorization, reporting, control, review and general governance procedures to assure that investment policies and guidelines are reviewed on a regular basis and conformed to at all times. All modifications of policies and/or guidelines shall be in writing, signed by all Board members, and delivered on a timely basis to any IM and/or Custodian affected by such changes. 4. Establishment of, through contractual relationships with recognized and carefully selected professional organizations, or by alternative means satisfactory to the Board, a retirement plan management structure which will assure appropriate investment management, custody, and surveillance or compliance procedures to meet investment objectives in conformity with the Board's stated investment policies and guidelines. 5. The City of Dover Employee’s Pension Plan investment policy will be adopted by the Board of Trustees. The policy will be reviewed with the Investment Manager at least once every year by the Board of Trustees, which is charged with considering the existing policy and any recommendations to modify the policy. The Board shall examine this Statement from time to time and make appropriate revisions. At least annually the Board shall review the Statement entire and communicate any material changes to any persons affected by them. RESPONSIBILITIES OF THE INVESTMENT MANAGER(S) Fund management and responsibilities for investment decisions are delegated to any appointed IM. Any IM shall exercise complete discretion within the clear limits established by this Statement. Accordingly, the Board requires adherence to Delaware or other pertinent laws as now apply, or may apply in the future, with particular attention to the standards established by applicable rules of law. Fiduciary insurance, and officer liability and omissions and errors insurance coverage, of any IM, must meet standards set by the Board from time to time. If at any time a manager believes that this Investment Policy Statement inhibits its investment performance, it is the manager’s responsibility to communicate this view to the Pension Board. In addition, the manager will promptly (within 30 days) notify the Pension Board, in writing, regarding all material or significant matters that change pertaining to the investments of the retirement fund assets, including but not limited to:  changes in investment strategy portfolio structure, tactical approaches and market value of managed assets;  changes in ownership organizational structure, financial condition, and/or professional staff of the investment firm; and  all material legal, SEC and other regulatory proceedings affecting the firm. RESPONSIBILITIES OF THE PLAN CUSTODIAN(S) Any Custodian appointed by the Board shall be responsible for safekeeping of the Fund, including all security transaction settlements and deliveries, and for comprehensive recordkeeping and reporting, 5

which shall include any custom recordkeeping, record retention, or reporting reasonably required by the Board or Staff. Safety and continuity of operations shall be the primary objectives of any Custodian. Timely, accurate, and complete recordkeeping and reporting, arising from superior state-of-the-art information systems and committed staff, shall be the primary benchmarks for month-to-month evaluation of Custodian performance. Fund safekeeping and securities settlement procedures shall include direct Custodian participation in one or more appropriate securities depositories (e.g., Depository Trust Company, New York) and, as necessary, correspondent participation in other major depositories (e.g., the Federal Reserve System). The Plan's beneficial ownership of all assets shall be inviolate and in all circumstances perfected. Board or designated IM authority to direct all investment transactions shall similarly be protected. Ready access to information by the Board and Staff shall be a prime requisite of recordkeeping and reporting services, with no bar as to frequency of access, nor any delay greater than one day acceptable. Transaction records shall be maintained on a trade date basis and shall remain immediately available for at least two years. Nationally accepted asset pricing should be daily and reported not less often than monthly, and "non-trade" transaction records (e.g., stock splits, etc.) should be both available immediately and properly carried into monthly transaction and asset value reports. Fiduciary insurance, and officer liability and omissions and errors insurance coverages, of any Custodian, must meet standards set by the Board from time to time. INVESTMENT OBJECTIVES Investment Objectives for the Plan represent anticipated results and are long-term in nature. Given the Board assumptions respecting current and projected Plan and capital market conditions, the following Objectives have been delineated: 1. All Plan fiduciaries shall discharge their responsibilities and the Fund shall be invested in a manner consistent with [relevant law] and generally accepted fiduciary standards. Further: (1) all transactions undertaken on behalf of the Plan shall be solely in the interest of Plan participants and beneficiaries, and (2) with reference to Prudence in Investment, set forth earlier in this Statement, safeguards and diversification to which a prudent investor familiar with and managing the Fund of this Plan under known or foreseeable circumstances would adhere, and liquidity and current return consistent with rationally anticipated cash flow requirements of the Fund, shall be governing factors in all investment considerations. 2. Consideration shall be given to suitable long-term investment intended to provide Fund capital and income growth which may be utilized to increase future benefits and thus maintain the purchasing power of Plan participants and their beneficiaries; the Board anticipates that such capital and income growth will be achieved during each economic and/or securities market cycle and/or within its selected three-to-five (3-5) year investment time horizon. 3. Consideration shall also be given, granting conformity with the objectives of 2., above, to providing adequate and timely cash flows to meet anticipated Plan benefit payments, with sufficient reserves to 6

meet relatively smaller flows for unanticipated benefit payments; adequate emphasis, consistent with the foregoing, shall be placed upon current investment return; any Fund IM should expect to receive periodic projections of Fund liquidity requirements but, in the absence of such projections, shall be responsible for seeking necessary information from the Board or any party designated by the Board for this purpose. 4. While professional managers may strive to record positive rates of investment return during all measurement periods, securities markets are unlikely to provide a consistently favorable climate, on a shorter-term basis, for longer-term investments. Therefore, considering usual multi-year economic and/or investment cycles, and the three-to-five (3-5) year investment time horizon selected by the Board, requisite but not exclusive comparative or benchmark measures of investment return, and of risk or volatility, are delineated as follows: a. Commensurate with preserving participant and beneficiary purchasing power through the Plan, it is desired to achieve a positive real (post-inflation) rate of return during any multi-year period and over the life of the Plan. Based upon current and projected Plan and capital market conditions, and the extensive historical records provided by such sources as Ibbotson- Sinquefeld, the Board has set returns meeting or exceeding the Plan’s actuarial interest rate assumption at any time, annualized, as a gross multi-year return target. Concurrently, 3.5 percentage points above the CPI, or an annualized 3.5 percent real rate of return, is anticipated for the Total Fund. b. Consistent with anticipated real returns (above) and separate asset class returns (below), annualized Total Fund investment performance, for periods of three-to-five (3-5) years or more, is expected to meet or exceed the Plan's assumed actuarial rate and to meet or exceed the annualized investment performance of a "policy index" comprised of a weighted average of relevant asset-class indexes matched with policy or "target" asset allocations in effect on average for the Fund during the period considered. c. Consistent with b., above, the Total Fund’s investment return volatility, as measured by the standard deviation of quarterly investment returns, is not expected to exceed the volatility of the policy index during any three-to-five (3-5) year measurement period. d. Also consistent with b., above, Total Fund domestic equity investment returns are expected to meet or exceed similar annualized returns of the Russell 3000 Stock Index during periods of three-to-five (3-5) years or more; equity investment returns of any specific IM, annualized, are expected to meet or exceed returns of any index or benchmark cited in writing by the Board as appropriate to the investment process or "style" of any specific IM. e. Also consistent with b., above, Total Fund domestic fixed income investment returns, annualized, are expected to meet or exceed similar returns of the Lehman Brothers Intermediate Government/Credit Bond Index during periods of three-to-five (3-5) years or more; as in d., above, any index or benchmark may be chosen by the Board as appropriate to the investment process, "style", or time-horizon of any specific IM. f. All investment performance data submitted to the Board or its designees directly or indirectly by or on behalf of any IM shall as applicable be submitted in conformity with the North American 7

Performance Presentation Standards and/or Global Investment Performance Standards promulgated by the Association for Investment Management and Research. 5. Investment performance objectives of the Fund are, as stated initially under Investment Objectives, above, long-term in nature. Concern respecting market value or Fund investment return volatility and other measures reflecting investment uncertainty will be addressed in part by functional constraints imposed by the Board through asset (class) allocations, investment management processes or "styles" chosen, portfolio diversification requirements, and other investment management guidelines and/or limitations. INVESTMENT POLICY Investment Policy delineates controls and the associated monitoring intended to enhance the likelihood of meeting Investment Objectives during acceptable periods of time. ASSET ALLOCATION Asset class allocation, resulting in so-called asset mix or investment ratios, is intended to afford an optimum approach toward Investment Objectives while limiting investment risk by assuring basic diversification. The variable percentages of asset classes delineated below provide a framework through which the Fund investments may be adjusted to meet economic and/or investment market conditions while remaining centered on the allocation target deemed most appropriate to the Fund's long-term Investment Objectives. Asset Class Minimum % Target % Maximum% Benchmark Equities 60 65 70 Domestic 44 49 54 Russell 3000 International 11 16 21 MSCI EAFE (net) Fixed Income 30 35 40 Bonds 28 33 38 Barclays Intermediate Gov't/Credit Cash 0 2 5 ML 90 Day T-Bill ALLOCATION MONITORING/REBALANCING The Board shall review asset allocation quarterly to monitor Total Fund allocation targets. In the event that asset allocations because of cash flows or market value changes fall moderately outside the ranges in the tables above, any appointed Custodian may be notified and instructed by the Board to adjust contribution cash flows to any specific IM and thus return the Total Fund to appropriate asset allocation levels. Should an allowable range be breached substantially, i.e., by ten (10) percent of per-portfolio per- IM assets or five (5) percent of Total Fund Assets, any IM involved may be required by the Board to adjust assets immediately. The Board may set asset allocation ranges for any specific IM different from ranges for the Total Fund. 8

LIQUIDITY Emphasis shall, per Investment Objectives, 3., above, be placed on providing adequate and timely Fund cash flow to permit benefit payments from the Plan when due. The Board endeavors to meet all of the Plan’s multiple objectives through asset allocation and constructive Investment Guidelines. Nevertheless, any IM appointed by the Board shall be responsible for seeking from the Board or its designee(s) current information respecting cash flow requirements and for assisting in meeting said requirements. PROXY VOTING While matters of public interest as well as corporate governance have long been a part of publicly owned corporations’ Annual Meetings and proxy voting activity in the United States, the Board continues to believe that the Fund’s proxy voting must be based upon the long-term economic value of the securities represented in each case and thus solely in the interests of Plan participants and their beneficiaries. The Board delegates timely and complete proxy voting to any IM to assure that the interests cited immediately above have been met. Delegation as stated precludes Board interference with or exercise of proxy voting, but does not preclude any IM request for and independent consideration of Board views officially determined and expressed. DIVERSIFICATION Total Fund investments must be diversified broadly to minimize the risk of substantial losses. The Board recognizes that significant diversification is accomplished through asset allocation and the selection of investment management organizations. Nevertheless, the Investment Guidelines provided herewith include certain provisions intended to optimize investment diversification. MUTUAL & OTHER COMMINGLED FUNDS Given the nature of mutual and other commingled funds, it is recognized that there may be deviations between this Investment Policy Statement and the objectives of the mutual and other commingled fund(s). However, every effort shall be made to the extent practical or prudent and appropriate to select mutual and other commingled funds that have investment objectives and policies that are consistent with this Investment Policy. INVESTMENT GUIDELINES Investment Guidelines describe for any IM and for the information of any Custodian or interested person a wide range of permissible investment activities and choices while also delineating, specifically or by broader proscription, those which are not permissible. GENERAL GUIDELINES Subject to the asset allocation ranges set forth as a table within Investment Policy, above, or separate asset allocation ranges assigned specifically to any IM by the Board, any IM is expected to undertake flexible discretionary management of Fund assets. Nevertheless, when responsible for any investment portfolio, any IM shall report immediately to the Board or its designee(s) any shift between or change in market 9

value of asset classes which equals or exceeds ten (10) percent of the market value of the assets assigned to the specific IM. For the purpose described herein, cash and money market or cash equivalent securities shall be considered an asset class. The Board has determined that certain investment practices, as well as certain types of investments, are not suitable for the Fund irrespective of circumstances: 1. Buying or (short) selling securities on margin, and/or the use of any other form of leverage, excepting the lending of securities if approved in writing by the Board. 2. Privately placed or otherwise unregistered securities excepting fixed income securities, issued under SEC Rule 144(a), which are demonstrably marketable and otherwise within guidelines. 3. Investment in commodities or in any type of commodities contracts, forward or futures trading activities, and all forms of portfolio hedging, excepting the limited use of stock options and/or currency hedges; (See Domestic Equity and International Equity Investment Guidelines, below.) 4. Fixed income investments may not include deep discount or zero coupon (excepting U.S. Treasury) securities, tax exempt, indirectly asset backed or spread-dependent, and stripped or otherwise derivative or synthetic securities. Certain exceptions are delineated below. DOMESTIC EQUITY INVESTMENT GUIDELINES The Board shall review the Fund at least quarterly to assure that the domestic equity limit of 54 percent of Fund market value is not exceeded; as necessary, any Custodian will be instructed to redirect cash flows to or from any IM or to accommodate immediate Board-directed IM asset allocation revision to restore the Asset Allocation currently approved by the Board. Permissible equity investments shall include convertible securities, which shall be limited to ten (10) percent of Fund assets at market value, as well as American Depositary Receipts (ADRs), equally limited. Any IM retained for this mandate shall conform to the Domestic Equity Investment Guidelines set forth above and below. Any departure from the Guidelines must be submitted in writing to the Board for prior approval, as must any change in the “style” or investment philosophy, process, or practices approved by the Board at the time any IM was retained to serve the Fund. Specific Guidelines, Domestic Equity 1. Full discretion, consistent with the Investment Objectives, Policies, and Guidelines set forth in this Statement, is granted to each IM retained to manage domestic equity securities. 2. Each IM retained for this mandate shall select domestic equity investments in conformity with criteria normally applied in its decision making process and previously reviewed and approved by the Board. 3. No IM shall invest on a market value basis more than five (5) percent of the domestic equity portion of any portfolio in the equity security(ies) of a single corporation or group of directly affiliated corporations, nor maintain an investment of more than eight (8) percent similarly calculated. 10

4. No IM may make or maintain an investment equaling or exceeding four and nine-tenths (4.9) percent ownership of the outstanding domestic equity security(ies) of a single corporation, or group of directly affiliated corporations, without the written consent of the Board. 5. Each IM is expected to purchase marketable domestic equity securities listed on national securities exchanges or actively traded within the national NASDAQ framework; domestic U.S. equity securities, purchased outside the channels cited, or purchased without regard to necessary market liquidity as demonstrated through weekly trading statistics, place upon any IM a special burden respecting Board tolerance of unacceptable risk and/or losses which might ensue. 6. As an exception to the general prohibition against so-called alternative investment instruments, stock options may be utilized by each IM managing domestic U.S. equity securities in “covered” or hedging postures but not in “naked” or speculative postures. 7. Again the total annualized investment return of all domestic U.S. equity investments of the Fund is expected to meet or exceed the total annualized return of the Russell 3000 Stock Index for cumulative periods of three-to-five (3-5) years or more. 8. Any IM serving as an active domestic U.S. equity manager will be assigned an index or other type of benchmark deemed suitable for it and agreed upon with the Board; as a general expectation any IM should exceed its assigned benchmark, post fees, on annualized bases during periods of three-to-five (3-5) years or more. INTERNATIONAL EQUITY INVESTMENT GUIDELINES The Board/Trustees shall review the Fund at least quarterly to assure that the International Equity limit of 21 percent of Fund market value is not exceeded; as necessary, the Custodian(s) will be instructed to redirect cash flows to the DA(s) or to accommodate immediate Board-directed DA(s)’ asset allocation revisions to restore the asset allocation currently approved by the Board/Trustees. Stated percentages may include foreign equity securities admitted to trading on U.S. Stock Exchanges or NASDAQ; American Depositary Receipts (ADRs) shall be designated as domestic equities. Specific Guidelines, International Equity 1. Investment in International Equity, is permissible up to the maximum stated in asset allocation (page 8). Each IM retained as an International Equity Manager must receive specific Board authorization to invest in International Equity. Investing in emerging market equity securities is permissible subject to a maximum of fifteen (15) percent of any international equity portfolio at market value. Appropriate regional, national, industry and individual security diversification must be maintained at all times. 2. Any IM retained for this mandate is expected to select International Equity investments in conformity with criteria normally applied in its decision making process and previously reviewed and approved by the Board. 3. No IM shall invest more than five (5) percent of the equity portion of any International Equity portfolio in the equity security(ies) of a single corporation or group of directly affiliated corporations; no IM may maintain an investment equaling or exceeding eight (8) percent ownership in the equity security(ies) of any corporation, or group of directly affiliated corporations, without the written 11

consent of the Board, nor may any International Equity IM exceed four (4) percent ownership of the outstanding equity of any company or group of affiliated companies. 4. Any IM retained for this mandate shall purchase marketable foreign stocks traded on regulated foreign or U.S. stock exchanges for which trading activity is published on a daily basis and for which any IM can demonstrate necessary liquidity as well as acceptable investment quality standards. 5. The annualized total investment return from any portfolio of International Equity investments of the Fund is expected to meet or exceed after fees the annualized total return of an appropriate benchmark, to be agreed upon by any IM and the Board, for periods of three-to-five (3-5) years or more. In the absence of another selected benchmark, the Morgan Stanley C.I. “EAFE” Index shall serve as benchmark. 6. Because an active currency hedging strategy may reduce risk of loss and/or enhance IM International Equity investment performance, hedging to protect against currency impact upon a security position may be in the best interest of the Fund. Nevertheless, the purchase of speculative or “naked” currency contracts (i.e., “currency trading” or related risk taking undertaken without a demonstrable exposed investment position to be hedged in a specific currency) is prohibited. DOMESTIC FIXED INCOME INVESTMENT GUIDELINES The Board shall review the Fund portfolio at least quarterly to assure that the domestic fixed income securities market value limit of 40 percent is not exceeded. As necessary, any Custodian will be instructed by the Board to redirect investment and/or contribution cash flows to or from any IM or to accommodate immediate Board-ordered portfolio revisions to restore the asset allocation currently approved. Any IM retained for this mandate shall conform to the Domestic Fixed Income Investment Guidelines set forth above and below. Any departure from the Guidelines must be submitted in writing to the Board for prior approval, as must any change in the "style" or investment philosophy, process, or practices approved by the Board at the time any IM was retained to manage domestic fixed income securities of the Fund. Specific Guidelines, Domestic Intermediate Term Fixed Income 1. Full discretion, consistent with the Investment Objectives, Policies, and Guidelines set forth in this Statement, is granted to each IM retained to manage domestic intermediate term fixed income securities. 2. Any IM retained for this mandate is expected to select domestic intermediate term fixed income investments in conformity with the criteria normally applied in its decision making process and previously reviewed and approved by the Board. 3. Suitable domestic intermediate term fixed income investments include, but are not limited to, U.S. Treasury and Agency securities, marketable debt securities of U.S. corporations, U.S. certificates of deposit and bankers acceptances, and commercial paper or other generally utilized money market or cash equivalent investments, including money market mutual funds meeting the quality standards delineated below. 12

4. Foreign fixed income securities, if rated Baa or above, including Canadian securities, denominated in U.S. dollars (i.e., foreign “Yankee” and Canadian U.S. pay securities) may be purchased to a limit of the applicable fixed income manager’s benchmark plus 5% at market value of any domestic intermediate term fixed income securities portfolio. 5. Permissible private placement (Rule 144a) securities, per General Guidelines, 2., p. 10 above, shall not exceed twenty (20) percent of the market value of any domestic intermediate term fixed income portfolio. Fixed income investments may not otherwise include unregistered, deep discount or zero coupon securities (excepting U.S. Treasury, see 12., p. 14, below), tax exempt, indirectly asset backed, spread-dependent, stripped, or otherwise derivative or synthetic securities. 6. At no time shall margin or other leveraged transactions, short sales, forward or futures trading, or any form of portfolio hedging be employed in the management of domestic intermediate term fixed income investments. 7. The total annualized investment return of all domestic fixed income investments of the Fund is expected to meet or exceed the total annualized return of the Lehman Intermediate Government/Credit. 8. The average quality of domestic intermediate term fixed income securities purchased by any IM shall equal or exceed A, the third broad investment grade as determined by any nationally recognized and regulated general or specialty debt/credit rating agency (e.g., including but not limited to Moody's, Standard & Poor's, Fitch, Duff & Phelps, Thompson's Bank Watch). If commercial paper is purchased the single acceptable quality shall be A1 or P1 or "Prime,” with no second level considered. 9. The minimum quality of any single fixed income investment shall be investment grade, as defined by two out of three of the following rating agencies; Moody’s, Standard and Poors, or Fitch. If an investment is made in commercial paper, the single standard shall be A1 or P1 or “Prime.” 10. The average effective duration of domestic fixed income securities, said average including any investments considered to be reserve or cash equivalent assets specific to any fixed income portfolio, shall never be more than twelve (12) months greater or less than the most recently published average or effective duration of the fixed income policy benchmark. 11. There shall be no limit upon investment in U.S. Treasury securities as a percentage of domestic intermediate term fixed income investments at cost or market value, except that any single coupon issue thereof may constitute at purchase more than thirty (30) percent of domestic intermediate term fixed income portfolio at market value, nor any single Treasury zero coupon issue ten (10) percent at market value, with a per-portfolio collective limit for Treasury or Agency zero coupon securities of thirty (30) percent at market value and an eight (8) year effective duration limit for any zero coupon security. Federal Agency securities are hereby limited to forty (40) percent of any domestic intermediate term fixed income investment portfolio at market value, with a per-issue limit of ten (10) percent at market value, excepting zero coupon Agency securities which shall be limited to five (5) percent per-issue at market value. Sharply lower limits are set for other types of securities. Without prior written Board approval, excepting Treasury and Agency securities: a. any single security issue shall not constitute more than five (5) percent, 13

b. securities of any single issuer or of directly affiliated issuers shall not constitute more than seven (7) percent, c. securities of a recognized industry (e.g., steel, auto, aluminum, banking), or d. securities of a single broad issuer type (e.g., utility, finance, industrial), or e. of one structural or transaction type (e.g., mortgage-backed, asset-backed), f. shall not constitute more than twenty (20) percent of any domestic intermediate term fixed income securities portfolio at market value. Permissible Rule 144a securities shall also be limited to twenty (20) percent at market value. 12. Any domestic fixed income security purchased in compliance with the quality, maturity, and/or diversification standards cited in 3., through 12., above, but no longer meeting a specific, per-security Investment Guideline standard, and/or by marginal effect causing non-compliance (e.g., occasioning fixed income portfolio decline to sub-standard average quality), may in lieu of immediate depressed or inappropriate sale be reported to the Board, with background information and an intended future course of action, by any IM. The Board may upon review approve temporary or indefinite retention or, in the Board’s best judgment, order disposition of the security and a return to full compliance with the Investment Guidelines. Securities retained under such circumstances shall constitute no more than five (5) percent of the market value of domestic intermediate term fixed income securities (5% “basket clause”). 13. AAA-rated asset-backed securities and AAA-rated agency and private label mortgage-backed securities, including collateralized mortgage obligations limited to five (5) percent per-issue and ten (10) percent of the market value of any domestic intermediate term fixed income portfolio at the time of purchase, are suitable fixed income investments, provided said obligations afford no features which would increase volatility beyond that of the underlying collateral. (E.g., C.M.O. “floaters” indexed to the London Interbank Offering Rate or LIBOR would not be suitable investments.) REVIEW PROCEDURES All Investment Policies, Objectives and Guidelines contained in this Statement shall be reviewed by the Board annually, or whenever circumstances change to the extent that earlier representations are ineffective or inappropriate. All concerned parties shall be notified in writing of any changes and/or additions. 1. Investment performance shall be reviewed quarterly. 2. Total Fund, asset class (e.g., domestic equity, international equity, domestic fixed income), and asset sub-class and/or “style” returns, shall be compared to universes of returns of comparable professionally managed tax-exempt balanced, equity and fixed income portfolios or collective or mutual funds as well as to benchmark indices or index composites. 3. It is expected that the investment performance of an IM will rank above any agreed upon universe median or index over periods of three-to-five (3-5) years and will meet or exceed the Investment Objectives identified in this Statement. 4. The Board reserves the right to terminate a relationship with any IM at any time, subject to the terms of any investment advisory agreement, if the Board determines that said action is warranted. In 14

addition, the Board reserves the right to remove assets, in part, at any time provided that any contracted asset and/or fee minimum of any IM is met or a change is negotiated. 5. Any IM shall provide statements of assets under management to the Board quarterly, and shall also comply with reasonable additional information requests from the Board, including details of any/all securities transactions and/or “soft dollar” payments if said payments are made at official Board request and/or arise from transactions involving the Fund. 6. Any IM shall meet at least annually, if requested by the Board, to review the Total Fund and any respective portfolio(s) and to discuss investment results in the context of all of the goals, Objectives, Policies and Guidelines set forth in this Statement. SIGNATURES The effective date of this Investment Policy Statement, adopted by the City of Dover Employees' Pension Board, is August 8, 2013. Chairperson City of Dover-Controller/Treasurer Amended November 9, 2011 Amended November 8, 2012 Amended August 8, 2013 15

AMMENDMENT I EMPLOYEES PENSION INVESTMENT POLICY The following amendment to the investment policy has been reviewed and approved by the Board: I. Allocation of Plan Assets -The plan will utilize a dynamic policy linked to funded status of the plan. As funded status improves to the next threshold, the allocation of the plan will be adjusted to the specified allocation. Within each threshold, 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. Dynamic Investment Policy Funded Status Asset Category 40% 70% 80% 85% 90% 95% 100% Cash & Short Term Bond 5% 5% 5% 5% 5% 5% 5% US Treasuries/Inflation-linked 2% 2% 2% 4% 6% 10% 13% Intermediate Term Bond 13% 15% 16% 18% 18% 21% 24% Long Term Bond 19% 21% 22% 24% 26% 29% 33% ge Cap Value-US Stock 10% 10% 9% 8% 8% 7% 4% Large Cap Growth-US Stock 11% 9% 9% 8% 7% 5% 4% Mid Cap - US Stock 5% 5% 5% 5% 5% 4% 3% Small Cap-US Stock 5% 5% 5% 4% 4% 3% 3% Real Estate/REIT 5% 5% 5% 4% 4% 3% 3% Non-US Stock 10% 9% 9% 8% 7% 5% 3% Emerging Markets 15% 14% 13% 12% 10% 8% 5% Equity 61% 57% 55% 49% 45% 35% 25% Fixed Income/Cash 39% 43% 45% 51% 55% 65% 75% II. Performance Monitoring Benchmarks- The plan will utilize asset category specific b enchmarks to monitor investment manager performance. In addition, overall portfolio performance will be benchmarked to a normal portfolio composed of category indexes allocated based on the Dynamic Investment Policy funded status position. Asset Inde Cash & Money Market CitiGroup 3 Month TBill Short-term Bond BofA Merrill Lynch 1-3 Yr Corp Intermediate-term Bond BarCap lnterm US Govt/Credit Index Long-term Bond BarCap Long GovtCredit Index Large Cap Value S&P/Citi 500 Value Large Cap Blend S&P 500 Index Large Cap Growth S&P/Citi 500 Growth Mid Cap Value S&P/Citi Mid-Cap 400 Value Mid Cap S&P 400 Mid Cap Mid Cap Growth S&P/Citi Mid-Cap 400 Growth Small Cap Value S&P/Citi Small Cap 600 Value Small Cap S&P 600 Small Cap Small Cap Growth S&P/Citi Small Cap 600 Growth Non-US Equity MSCI EAFE Non-US Small Cap MSCI EAFE Small Cap Emerging Mkts MSCI EM (Emerging Markets) REITS/Real Estate FTSE NAREIT Equity REIT 16

III. Approval by the Board – To indicate approval of this amendment to the Investment Policy Statement, the appropriate designated Board member shall sign below. This Amendment to the Statement of Investment Policy approved by action of the Board. Date: Approved by: Chairman Title: 17

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 Employee Pension Plan – Board From: Jeff Marzinsky & Kevin Abessi /Milliman Re: Investment Committee Meeting Notes – 11/14/2013 Enclosures: Milliman Quarterly Investment Monitor Report (QIM) 1. General Employees’ Pension Plan Investment Review through 9/30/2013: a. As of 9/30/2013, assets in the plan total $30.91 million, up from $30.26 million as of 6/30/2013. During the quarter, the plan had contributions of approximately $799 thousand, withdrawals of approximately $924 thousand, and fees of $4.3 thousand. b. Total performance of the plan portfolio was 2.60% net (2.66% gross) for the quarter, below the Plan’s benchmark index performance of 3.81%. c. As of 9/30/13, the Plan’s asset allocation was in line with the allocation targets, as the plan was rebalanced on its quarterly schedule prior to quarter end. NEW Target Allocation Fund with Additional Asset NEW Asset Allocation Range Category Description Category Investment Name Classes 8/2013 Money Market CA Wells Fargo Advtg Treas Plus MMkt 4.50% 0-10%; target 10% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 5.50% 0-10%; target 10% Cash + STB Inflation Protected Bonds TIPS Vanguard Inflation Prot Sec 6.00% 0-11%; target of 6% TIPS Intermediate Term Bonds INTB Vanguard Intermediate Bond 8.00% 3-13%; target 8% INTB Long Term Bonds LTB PIMCO Long Duration 4.50% 4-14%; target 9% LTB Long Term Bonds LTB Vanguard Long Duration 4.50% 4-14%; target 9% LTB High Yield Bond HYB Ivy High Income I 6.00% 0-11%; target 6% HYB Large Cap Value LCV Vanguard Equity Income 10.00% 5-15%; target 10% LCV Large Cap Growth LCG Vanguard Morgan Growth 5.50% 6-11%; target 11% LCG Large Cap Growth LCG Vanguard Primecap 5.50% 6-11%; target 11% LCG Mid Cap MCV Vanguard Mid Cap Value Index 5.00% 0-10%; target 5% MC Small Cap SCV Target Small Cap Value 5.00% 0-10%; target 5% SC Real Estatement Investment REIT Vanguard REIT Index 5.00% 0-13%; target 8% REIT Foreign Equity GLB American Funds New Perspective 5.00% 5-15%; target 10% GLB Foreign Equity GLB Harding Loevner Global Equity 5.00% 5-15%; target 10% GLB Emerging Markets EMG Vanguard Emerging Mkts 15.00% 5-15%; target 10% Emg Mkts Offices in Principal Cities Worldwide

Meeting Notes Page 2 2. Comments on specific funds: a. American Funds New Perspective and Harding Loevner Equity  Both funds have “world allocation” mandates; including US, non-US emerging markets stock.  This broad-based allocation has caused under performance to the non-US specific allocation strategy in the IPS.  In addition, the underlying holdings have overlap to the US stock and emerging markets funds in the plan.  Being legacy funds from the prior advisor who employed a different strategy, we find that they no longer fit the investment strategy for the plan.  For the next meeting there will be recommendations for more focused non-US stock investment fund(s). Offices in Principal Cities Worldwide

City of Dover General Employees Pension Plan Quarterly Return Summary CIVILIAN-NET CIVILIAN-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 7/31/2013 $ 30,262,895.13 $ 38,268.66 $ 301,587.46 $ 1,462.61 $ 579,634.20 $ 30,577,747.92 1.93% 1.95% 8/31/2013 $ 30,577,747.92 $ 19,228.78 $ 301,244.92 $ 1,440.66 $ (610,873.51) $ 29,683,417.61 -2.02% -2.00% 9/30/2013 $ 29,683,417.61 $ 741,663.03 $ 321,288.49 $ 1,423.14 $ 809,235.95 $ 30,911,604.96 2.73% 2.75% $ 799,160.47 $ 924,120.87 $ 4,326.41 $ 777,996.64 Quarterly Return 2.60% 2.66% Milliman, Inc.

Quarterly Investment Monitor Summary Report for the Quarter Ending September 30, 2013 Prepared for City of Dover, Delaware General Employee Pension Plan

Quarterly Investment Monitor Contents Section A: Market Commentary Section B: Performance Summary Section C: Core Fund Review Section D: Glossary City of Dover, Delaware General Employee Pension Plan 2

Quarterly Investment Monitor Market Indices - 3rd Quarter 2013 3 1 3 5 Index Months Year Years Years BofAML US Treasury Bill 3 Mon 0.02 0.10 0.10 0.16 Barclays US Govt 1-3 Yr TR USD 0.29 0.37 0.75 1.84 Barclays US Govt/Credit Interm TR USD 0.62 -0.50 2.41 4.95 Barclays US Government Long TR USD -2.12 -10.43 3.64 6.50 Barclays US Long Credit TR USD -0.03 -6.89 5.36 11.17 Barclays US Corporate High Yield TR USD 2.28 7.14 9.19 13.53 DJ Industrial Average TR USD 2.12 15.59 14.94 9.93 S&P 500 TR 5.24 19.34 16.27 10.02 NASDAQ 100 TR USD 11.01 16.71 18.61 16.22 NASDAQ Composite TR USD 11.19 22.77 18.17 13.76 Russell 1000 Value TR USD 3.94 22.30 16.25 8.86 Russell 1000 TR USD 6.02 20.91 16.64 10.53 Russell 1000 Growth TR USD 8.11 19.27 16.94 12.07 Russell 2000 Value TR USD 7.59 27.04 16.57 9.13 Russell 2000 TR USD 10.21 30.06 18.29 11.15 Russell 2000 Growth TR USD 12.80 33.07 19.96 13.17 FTSE NAREIT All REITs TR -2.39 5.14 12.60 6.47 MSCI EAFE NR USD 11.56 23.77 8.47 6.35 MSCI EAFE Small Cap NR USD 15.52 29.43 11.25 11.43 MSCI EM NR USD 5.77 0.98 -0.33 7.22 City of Dover, Delaware General Employee Pension Plan 3

Quarterly Investment Monitor Broad Market Commentary - 3rd Quarter 2013 Broad Markets - Quarter Broad Markets - Five Years Jul-13 - Sep-13 Sep-08 - Sep-13 12 200 180 10 160 8 Total Return, % Growth of $100 140 6 120 4 100 2 80 0 60 Jul-13 - Sep-13 Sep-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Sep-13 Total Total Barclays US Govt/Credit Interm TR USD S&P 500 TR Barclays US Govt/Credit Interm TR USD S&P 500 TR NASDAQ Composite TR USD MSCI EAFE NR USD NASDAQ Composite TR USD MSCI EAFE NR USD Market Commentary · The U.S. stock market rose on improving U.S. economic data, steady growth in corporate earnings, and the Federal Reserve's decision to postpone its planned reduction (“tapering”) of securities purchases. · The international equity markets made substantial gains on Europe's emergence from recession, improving economic data in certain emerging markets economies, and the Fed's decision to maintain its stimulus program at current levels. · The market experienced wide swings in financial and commodity prices during the quarter, which may not necessarily be reflected in the manager's performance. · The Fed surprised many investors in mid-September by not reducing its securities purchases, announcing it would continue its purchases at the current rate of $85 billion per month and keep short-term interest rates low until at least 2015. · As the quarter ended, mutual fund investors decreased their holdings in bonds and increased their holdings in stocks. For the quarter, bond funds had net outflows of $60.0 billion, while stock funds had net inflows of $30.8 billion. Total money market mutual fund assets increased by $99.5 billion to $2.694 trillion. · The price of oil increased from $97 per barrel to $102 during the quarter, an increase of 5.2%. City of Dover, Delaware General Employee Pension Plan 4

Quarterly Investment Monitor US Fixed Income Market Commentary - 3rd Quarter 2013 US Fixed Income - Quarter US Fixed Income - Five Years Jul-13 - Sep-13 Sep-08 - Sep-13 3 200 180 2 160 1 Total Return, % Growth of $100 140 0 120 -1 100 -2 80 60 -3 Sep-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Sep-13 Jul-13 - Sep-13 Total Total BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD US Bond Market · The broad fixed income market rose 0.57% in the 3rd quarter, as the coupon return of 0.70% more than offset the negative impact from a rise in interest rates. · The short end of the yield curve remained unchanged as the Fed maintained its near-zero interest rate policy. · Interest rates increased slightly for 7- to 30-year Treasury bonds. · High-yield bonds were the best performing sector this quarter, up 2.28%, as investors favored bonds with higher yields. · Long-term corporate bonds were up 0.03%, as tightening spreads slightly offset the negative impact from rising yields on the long end of the curve. · Long-term government bonds were the worst performing sector this quarter, down 2.70%, as investors anticipated lower bond purchases by the Fed. · 3-month T-Bill returned 0.02% in the third quarter, the same return as in the second quarter. City of Dover, Delaware General Employee Pension Plan 5

Quarterly Investment Monitor US Equity Market Commentary - 3rd Quarter 2013 US Equity - Quarter US Equity - Five Years Jul-13 - Sep-13 Sep-08 - Sep-13 14 200 12 180 160 10 Total Return, % Growth of $100 140 8 120 6 100 4 80 2 60 0 40 Jul-13 - Sep-13 Sep-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Sep-13 Total Total Russell 1000 Value TR USD Russell 1000 TR USD Russell 1000 Value TR USD Russell 1000 TR USD Russell 1000 Growth TR USD Russell 2000 Value TR USD Russell 1000 Growth TR USD Russell 2000 Value TR USD Russell 2000 TR USD Russell 2000 Growth TR USD Russell 2000 TR USD Russell 2000 Growth TR USD US Stock Market · Most major domestic equity indices posted a gain for the quarter. The small-cap Russell 2000 Growth Index had the best return, up 12.80%. · In terms of capitalization, small-cap stocks outperformed large-cap stocks. · In comparing styles, growth stocks did better than value stocks. · REITs fell 3.15%, as dividend-oriented and defensive sectors lagged the broad market. The worst performing sectors were health care and apartments. · Materials were the best performing sector, up 9.89%, on optimism over U.S. and global economic growth and mostly higher commodity prices. · Telecommunications services were the worst performing sector, falling 3.22%, as Verizon shares lost 6% after the company agreed to buy Vodafone's stake in Verizon Wireless. City of Dover, Delaware General Employee Pension Plan 6

Quarterly Investment Monitor International Market Commentary - 3rd Quarter 2013 International - Quarter Jul-13 - Sep-13 16 International - Five Years 14 12 Sep-08 - Sep-13 Total Return, % 10 180 8 6 160 4 2 0 140 Growth of $100 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD 120 MSCI EM NR USD Regional Performance - Quarter 100 Jul-13 - Sep-13 16 14 80 12 Total Return, % 10 8 60 Sep-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Sep-13 6 4 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD 2 MSCI EM NR USD 0 MSCI Australia NR USD MSCI Europe Ex UK NR USD MSCI UK NR USD MSCI Pacific Ex Japan NR USD MSCI Japan NR USD MSCI EM Latin America NR USD International Markets · The dollar was down against the euro, pound, and yen. · For the quarter, the EAFE Index was up 11.56%, and Emerging Markets were up 5.77%. Local currency returns for the EAFE Index and Emerging Markets were 7.50% and 5.63%, respectively. · Among the major international regions, European stocks had the highest return, up 14.94%, as the euro zone had positive economic growth, and certain telecom and technology stocks benefited from acquisitions. · Stocks in India had the lowest return, down 5.67%, on worries about rising inflation, weak economic growth, and a sharply depreciating rupee. · Small-cap stocks, up 15.5%, outperformed large-cap stocks. City of Dover, Delaware General Employee Pension Plan 7

Quarterly Investment Monitor Data as of 09/30/2013 Performance Summary City of Dover, Delaware General Employee Pension Plan 8

Quarterly Investment Monitor Data as of 09/30/2013 Asset Allocation Balances As of Percent As of Balances As of Percent As of Notes 09/30/2013 09/30/2013 06/30/2013 06/30/2013 Wells Fargo Advantage Treas Plus MMkt I $1,404,012 4.54% $7,025,207 23.21% PISXX Vanguard Short-Term Bond Index Signal $1,721,457 5.57% $123,198 0.41% VBSSX Vanguard Inflation-Protected Secs I $1,881,554 6.09% $462,364 1.53% VIPIX Vanguard Interm-Term Bond Index Signal $2,527,500 8.18% $3,123,700 10.32% VIBSX Vanguard Long-Term Bond Index I $1,436,248 4.65% $2,238,882 7.40% VBLLX PIMCO Long Duration Total Return Instl $1,429,702 4.63% $2,217,763 7.33% PLRIX Ivy High Income I $1,870,854 6.05% $0 0.00% IVHIX Vanguard Equity-Income Adm $3,054,718 9.88% $2,588,886 8.55% VEIRX Vanguard Morgan Growth Adm $1,691,852 5.47% $1,409,124 4.66% VMRAX Vanguard PRIMECAP Inv $1,685,751 5.45% $1,430,708 4.73% VPMCX Vanguard Mid-Cap Value Index Admiral $1,538,085 4.98% $1,283,352 4.24% VMVAX Target Small Capitalization Value T $1,559,666 5.05% $1,287,543 4.25% TASVX American Funds New Perspective R6 $1,538,387 4.98% $1,249,598 4.13% RNPGX Harding Loevner Global Equity Inst $1,540,327 4.98% $1,229,166 4.06% HLMVX Vanguard Emerging Mkts Stock Idx I $4,516,518 14.61% $3,354,061 11.08% VEMIX Vanguard REIT Index I $1,514,422 4.90% $1,239,301 4.10% VGSNX Plan Total $30,911,053 $30,262,853 City of Dover, Delaware General Employee Pension Plan 9

Quarterly Investment Monitor Data as of 09/30/2013 Investment Policy Review - Active Management Return Return Excess Excess Relative Relative Alpha Sharpe Alpha Sharpe Fund Rank Rank Return Return StdDev StdDev Rank Rank Rank Rank Name 3Y 5Y 3Y 5Y 3Y 5Y 3Y 3Y 5Y 5Y Vanguard Inflation-Protected Secs I 10 34 -0.12 -0.22 1.02 1.01 24 18 59 53 PIMCO Long Duration Total Return Instl 73 20 -0.43 1.33 0.93 0.96 87 80 80 67 Ivy High Income I 1 2 2.49 0.41 0.77 0.75 1 1 0 0 Vanguard Equity-Income Adm 8 15 2.01 2.30 0.78 0.84 2 1 10 10 Vanguard Morgan Growth Adm 43 40 -0.95 -0.63 1.25 1.14 59 54 48 44 Vanguard PRIMECAP Inv 28 40 -0.02 -0.59 1.15 1.11 20 20 40 39 Target Small Capitalization Value T 50 43 -2.77 0.11 0.90 0.86 23 19 30 28 American Funds New Perspective R6 28 17 2.56 2.74 0.96 0.94 30 26 19 17 Harding Loevner Global Equity Inst 67 39 -0.35 1.28 0.98 0.96 62 61 45 39 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 General Employee Pension Plan 10

Quarterly Investment Monitor Data as of 09/30/2013 Investment Policy Review - Passive Management Excess Excess Tracking Tracking Fund Beta Beta Expense Return Return Error Error Name 3Y 5Y Ratio 3Y 5Y 3Y 5Y Vanguard Short-Term Bond Index Signal 0.43 0.93 2.09 0.76 1.66 0.89 0.10 Vanguard Interm-Term Bond Index Signal 0.74 1.94 0.84 1.99 0.82 3.09 0.10 Vanguard Long-Term Bond Index I -0.01 0.01 1.01 0.79 1.02 0.81 0.07 Vanguard Mid-Cap Value Index Admiral -0.22 0.25 0.97 2.19 1.03 3.17 0.10 Vanguard Emerging Mkts Stock Idx I 0.20 -0.54 1.02 3.42 1.02 3.37 0.12 Vanguard REIT Index I 1.26 1.92 1.00 0.21 0.99 0.53 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 General Employee Pension Plan 11

Quarterly Investment Monitor Data as of 09/30/2013 Investment Option Return Summary Asset Fund 3 1 3 5 10 Mstar Expense YTD Ticker Class Name Months Year Years Years Years Rating Ratio Taxable Money Market Wells Fargo Advantage Treas Plus MMkt I 0.00 0.01 0.01 0.01 0.02 1.54 PISXX NA 0.20 BofA ML 3-month T-bill total return Index 0.02 0.06 0.10 0.10 0.17 1.70 N/A NA NA Short-term Bond Vanguard Short-Term Bond Index Signal 0.57 0.04 0.18 1.51 3.46 3.34 VBSSX 3.00 0.10 Barclays US Govt/Credit 1-3 Yr TR USD 0.40 0.47 0.62 1.08 2.52 2.91 N/A NA NA Inflation-Protected Bond Vanguard Inflation-Protected Secs I 0.91 (6.74) (6.21) 3.90 5.09 5.10 VIPIX 4.00 0.07 Barclays US Treasury US TIPS TR USD 0.70 (6.74) (6.10) 4.02 5.31 5.23 N/A NA NA Intermediate-term Bond Vanguard Interm-Term Bond Index Signal 0.75 (2.89) (2.44) 3.76 7.55 5.41 VIBSX 4.00 0.10 Barclays US Govt 5-10 Yr TR USD 0.29 (3.17) (3.22) 3.02 5.61 5.15 N/A NA NA Long-term Bond Vanguard Long-Term Bond Index I (0.98) (8.60) (8.44) 4.70 9.08 6.37 VBLLX 2.00 0.07 Long-term Bond PIMCO Long Duration Total Return Instl (0.65) (8.37) (7.97) 4.28 10.40 NA PLRIX 3.00 0.50 BC Long Government/Credit (0.83) (8.74) (8.33) 4.71 9.07 6.33 N/A NA NA High Yield Bond Ivy High Income I 2.97 6.86 10.66 11.68 13.94 8.83 IVHIX 5.00 0.70 BC High Yield Corporate Bond 2.28 3.73 7.14 9.19 13.53 8.86 N/A NA NA Large Value Vanguard Equity-Income Adm 3.62 19.45 19.61 17.88 10.68 9.19 VEIRX 5.00 0.21 S&P 500 Value 3.84 20.17 22.15 15.86 8.38 7.74 N/A NA NA Large Growth Vanguard Morgan Growth Adm 8.71 22.02 20.86 15.78 10.95 8.14 VMRAX 3.00 0.26 Large Growth Vanguard PRIMECAP Inv 7.29 26.39 29.63 16.71 10.99 10.19 VPMCX 4.00 0.45 S&P 500 Growth 6.60 19.44 17.00 16.73 11.58 7.35 N/A NA NA Mid-Cap Value Vanguard Mid-Cap Value Index Admiral 6.52 24.52 28.94 17.07 12.90 NA VMVAX 3.00 0.10 CRSP US Mid Cap TR USD 7.71 24.53 28.08 17.30 12.66 10.58 N/A NA NA Small Value Target Small Capitalization Value T 8.43 24.88 29.57 17.20 11.59 11.91 TASVX 4.00 0.68 S&P 600 Value 9.53 27.71 31.78 19.97 11.48 10.76 N/A NA NA World Stock American Funds New Perspective R6 8.35 17.12 22.05 12.77 10.45 10.05 RNPGX 4.00 0.46 World Stock Harding Loevner Global Equity Inst 8.24 12.17 13.37 9.86 8.99 8.79 HLMVX 3.00 0.95 MSCI AC World Index ND USD 7.90 14.43 17.73 10.21 7.71 7.86 N/A NA NA Diversified Emerging Mkts Vanguard Emerging Mkts Stock Idx I 4.82 (6.50) (0.10) (0.91) 6.52 12.40 VEMIX 3.00 0.12 FTSE Emerging NR USD 4.30 (5.26) 0.17 (1.11) 7.07 13.04 N/A NA NA Real Estate Vanguard REIT Index I (2.96) 3.19 5.76 12.35 6.37 9.66 VGSNX 3.00 0.08 MSCI US REIT NR USD (3.28) 2.30 4.52 11.09 4.45 NA N/A NA NA Total Plan CIVILIAN-GROSS RETURN 2.66 4.55 6.02 6.98 7.18 NA N/A NA NA Total Plan CIVILIAN-NET RETURN 2.60 4.35 5.73 6.60 6.75 NA N/A NA NA Employee Plan Policy Index 3.81 5.49 7.20 8.49 7.21 6.39 N/A NA NA City of Dover, Delaware General Employee Pension Plan 12

Quarterly Investment Monitor Data as of 09/30/2013 U.S. Fixed Income Style Map 36 Month moving average, Oct-08 - Sep-13 BC Government BC Credit Bond BC Municipal Bond BC High Yield Corporate Bond BC Mortgage Backed Securities Barcap US Fixed Income Vanguard Short-Term Bond Index Signal Vanguard Inflation-Protected Secs I Vanguard Interm-Term Bond Index Signal Vanguard Long-Term Bond Index I PIMCO Long Duration Total Return Instl Ivy High Income I City of Dover, Delaware General Employee Pension Plan 13

Quarterly Investment Monitor Data as of 09/30/2013 U.S. Equity Style Map 36 Month moving average, Oct-08 - Sep-13 LgValue LgGrowth Small - Large MidValue MidGrowth SmValue SmGrowth Value - Growth S&P/BARRA Style Indices Vanguard Equity-Income Adm Vanguard Morgan Growth Adm Vanguard PRIMECAP Inv Vanguard Mid-Cap Value Index Admiral Target Small Capitalization Value T Vanguard REIT Index I City of Dover, Delaware General Employee Pension Plan 14

Quarterly Investment Monitor Data as of 09/30/2013 International Equity Style Map 36 Month moving average, Oct-08 - Sep-13 Europe Large Asia Pacific Large Small - Large Europe Small Asia Pacific Small European Emerging Asia Pacific Emerging Europe - Asia SBI Equity Indices American Funds New Perspective R6 Harding Loevner Global Equity Inst Vanguard Emerging Mkts Stock Idx I City of Dover, Delaware General Employee Pension Plan 15

Quarterly Investment Monitor Data as of 09/30/2013 Core Fund Review City of Dover, Delaware General Employee Pension Plan 16

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Short-Term Bond Index Signal 1.10 10.95 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VBSSX % Bonds Morningstar Category Short-term Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks to track the performance of a market-weighted bond index with a % Pref Cat Med Mkt Cap $MM 85765.91 short-term dollar-weighted average maturity. The fund employs an indexing investment % Conv Net Assets $MM 33077.30 approach designed to track the performance of the Barclays U.S. 1-5 Year % Other Government/Credit Float Adjusted Index. This Index includes all medium and larger issues Turnover Ratio 51.00 % Non-US Bonds of U.S. government, investment-grade corporate, and investment-grade international % Assets in Top 10 Holdings 13.90 dollar-denominated bonds that have maturities between 1 and 5 years and are publicly Total Number of Holdings 1705.00 issued. All of the fund's investments will be selected through the sampling process, and Manager Name Joshua C. Barrickman at least 80% of the fund's assets will be invested in bonds held in the index. 87.90 Manager Tenure 0.60 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 1.10 7 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.90 6 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.05 Portfolio Ratings 5 % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 10.95 % Rank Cat 3 Yr 58 4 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 52 3 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 31 % Asia - Emerging NA 2 1 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials NA Avg Eff Duration 2.72 2 250 0 % Communication Services NA Effective Maturity 2.80 % Consumer Cyclical NA Avg Credit Quality AA 225 % Consumer Defensive NA AAA 75.63 -1 % Healthcare NA AA 4.21 200 % Industrials NA A 11.61 -2 % Real Estate NA BBB 8.55 3 Months YTD 1 Year 3 Years 5 Years 175 % Technology NA BB 0.00 % Energy NA B 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio 150 % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD % Utilities NA NR/NA 0.00 1 125 Turnover 100 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 0.25% 2.28% Vanguard Short-Term Bond Index Signal 0.57 0.04 0.18 1.51 3.46 75 US Treasury Note 2.125% 1.62% Barclays US Govt/Credit 1-3 Yr TR USD 0.40 0.47 0.62 1.08 2.52 US Treasury Note 2.25% 1.37% Universe(5%) 1.10 1.45 2.58 3.69 6.15 US Treasury Note 2.625% 1.32% 50 Universe(25%) 0.77 0.50 1.11 2.38 4.62 US Treasury Note 2.5% 1.31% Universe(Median) 0.53 0.17 0.53 1.81 3.63 US Treasury Note 0.375% 1.25% 25 US Treasury Note 0.875% 1.20% Universe(75%) 0.33 -0.28 0.00 1.25 2.78 US Treasury Note 0.625% 1.19% Universe(95%) 0.14 -1.44 -1.24 0.51 1.62 0 0 US Treasury Note 1.75% 1.19% US Treasury Note 0.25% 1.18% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 17

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Short-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 -5 100 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -10 Up/Down Market Capture Ratio -15 Oct-10 - Sep-13 450 -20 400 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 350 Up Mkt Capture Ratio, % Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 300 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 250 Vanguard Short-Term Bond Index Signal 3.37 1.70 1.31 4.09 7.28 5.51 4.38 4.03 3.08 2.05 200 Barclays US Govt/Credit 1-3 Yr TR USD 2.81 1.30 1.77 4.25 6.83 4.97 3.82 2.80 1.59 1.26 150 100 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 50 2 3 3 3 0 -200 -100 0 100 200 300 400 500 600 700 Down Mkt Capture Ratio, % 1 Excess Annualized StdDev, % Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Total Annualized StdDev, % 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD Sharpe Ratio Alpha, % 0 Return vs. Risk 1 1 1 Oct-10 - Sep-13 -1 7 6 Total Annualized Return, % 5 -2 0 0 0 4 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 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 2 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 1 Vanguard Short-Term Bond Index Signal -0.64 2.09 90.18 1.08 1.30 0.76 Barclays US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 1.66 0.59 0.00 0 Universe(5%) 1.56 3.26 86.45 2.25 2.60 2.36 -1 Universe(25%) 0.48 2.09 72.66 1.51 1.87 1.49 0 1 2 3 4 Universe(Median) -0.02 1.54 61.09 1.22 1.29 0.92 Total Annualized StdDev, % Universe(75%) -0.38 1.34 45.05 0.99 0.99 0.64 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Universe(95%) -1.23 0.81 16.74 0.42 0.69 0.33 Cash Barclays US Govt/Credit 1-3 Yr TR USD City of Dover, Delaware General Employee Pension Plan 18

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Inflation-Protected Secs I 1.87 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VIPIX % Bonds Morningstar Category Inflation-Protected Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks to provide inflation protection and income consistent with % Pref Cat Med Mkt Cap $MM 21693.40 investment in inflation-indexed securities. The fund invests at least 80% of its assets in % Conv Net Assets $MM 29347.34 inflation-indexed bonds issued by the U.S. government, its agencies and % Other instrumentalities, and corporations. It may invest in bonds of any maturity; however, its Turnover Ratio 33.00 % Non-US Bonds dollar-weighted average maturity is expected to be in the range of 7 to 20 years. At a % Assets in Top 10 Holdings 45.39 minimum, all bonds purchased by the fund will be rated investment-grade or, if unrated, Total Number of Holdings 43.00 will be considered by the advisor to be investment-grade. Manager Name Gemma Wright-Casparius Manager Tenure 2.12 _________________________________________________________________________ 98.13 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 1.87 8 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 98.13 6 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.00 Portfolio Ratings 4 % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 0.00 % Rank Cat 3 Yr 4 2 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 27 0 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 17 % Asia - Emerging NA -2 -4 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials NA Avg Eff Duration 8.14 1.0 350 -6 % Communication Services NA Effective Maturity 8.80 % Consumer Cyclical NA Avg Credit Quality Government 0.9 % Consumer Defensive NA AAA 100.00 300 -8 % Healthcare NA AA 0.00 0.8 % Industrials NA A 0.00 -10 % Real Estate NA BBB 0.00 250 3 Months YTD 1 Year 3 Years 5 Years 0.7 % Technology NA BB 0.00 % Energy NA B 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio 0.6 % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio 200 % Utilities NA NR/NA 0.00 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 0.5 Turnover 150 0.4 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 5.75% Vanguard Inflation-Protected Secs I 0.91 -6.74 -6.21 3.90 5.09 0.3 100 US Treasury Note 4.98% Barclays US Treasury US TIPS TR USD 0.70 -6.74 -6.10 4.02 5.31 US Treasury Note 4.90% Universe(5%) 1.16 -3.77 -3.40 4.11 6.35 US Treasury Note 4.88% 0.2 Universe(25%) 0.91 -6.44 -5.71 3.62 5.57 US Treasury Note 0.125% 4.84% 50 Universe(Median) 0.68 -6.91 -6.31 3.44 4.91 US Treasury Note 4.62% 0.1 US Treasury Note 1.125% 4.51% Universe(75%) 0.56 -7.25 -6.65 3.12 4.42 US Treasury Note 1.25% 4.00% Universe(95%) 0.39 -9.60 -9.77 2.01 3.33 0.0 0 US Treasury Bond 2.375% 3.93% US Treasury Note 0.5% 2.98% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 19

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Inflation-Protected Secs I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 100 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -5 Up/Down Market Capture Ratio -10 Oct-10 - Sep-13 180 -15 160 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 140 Up Mkt Capture Ratio, % Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 Vanguard Inflation-Protected Secs I 8.00 8.25 2.78 0.46 11.82 -2.81 11.03 6.33 13.39 6.87 80 Barclays US Treasury US TIPS TR USD 8.40 8.46 2.84 0.41 11.64 -2.35 11.41 6.31 13.56 6.98 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 1 0.8 7 5 0 0 20 40 60 80 100 120 140 160 180 200 0.7 6 Down Mkt Capture Ratio, % 4 0.6 Excess Annualized StdDev, % 5 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Total Annualized StdDev, % 0 Barclays US Treasury US TIPS TR USD 0.5 3 Sharpe Ratio 4 Alpha, % 0.4 3 Return vs. Risk 2 0.3 -1 Oct-10 - Sep-13 2 0.2 6 1 0.1 1 5 Total Annualized Return, % -2 0.0 0 0 4 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 2 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Inflation-Protected Secs I -0.17 1.01 99.29 0.67 5.78 0.49 1 Barclays US Treasury US TIPS TR USD 0.00 1.00 100.00 0.71 5.67 0.00 Universe(5%) 0.35 1.07 99.66 0.75 6.22 4.04 0 Universe(25%) -0.19 1.01 99.32 0.66 5.73 1.27 0 1 2 3 4 5 6 7 8 9 10 11 Universe(Median) -0.47 0.97 98.99 0.61 5.54 0.66 Total Annualized StdDev, % Universe(75%) -0.71 0.93 96.23 0.57 5.31 0.50 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Universe(95%) -1.56 0.62 71.18 0.40 4.24 0.34 Cash Barclays US Treasury US TIPS TR USD City of Dover, Delaware General Employee Pension Plan 20

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Interm-Term Bond Index Signal % Cash Portfolio Information Investment Strategy Summary 13.40 % US Stocks Ticker VIBSX % Bonds Morningstar Category Intermediate-term Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks the performance of a market-weighted bond index with an % Pref Cat Med Mkt Cap $MM NA intermediate-term dollar-weighted average maturity. The fund employs an indexing % Conv Net Assets $MM 14770.76 investment approach designed to track the performance of the Barclays U.S. 5-10 Year % Other Government/Credit Float Adjusted Index. This Index includes all medium and larger issues Turnover Ratio 65.00 % Non-US Bonds of U.S. government, investment-grade corporate, and investment-grade international % Assets in Top 10 Holdings 26.98 dollar-denominated bonds that have maturities between 5 and 10 years and are publicly Total Number of Holdings 1495.00 issued. All of the fund's investments will be selected through the sampling process, and Manager Name Joshua C. Barrickman at least 80% of the fund's assets will be invested in bonds held in the index. 86.41 Manager Tenure 5.44 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 0.15 8 % Canada NA % US Stocks 0.00 7 % Latin America NA % Bonds 86.41 % United Kingdom NA % Non-US Stocks 0.00 6 % Eurozone NA % Pref 0.00 Portfolio Ratings % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % 5 % Europe - Emerging NA % Other 0.04 3 Year Mstar Rating % Africa NA % Non-US Bonds 13.40 % Rank Cat 3 Yr 33 4 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 22 3 % Australasia NA 10 Year Mstar Rating 2 % Asia - Developed NA % Rank Cat 10 Yr 16 % Asia - Emerging NA 1 0 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials NA Avg Eff Duration 6.55 350 -1 % Communication Services NA Effective Maturity 7.30 -2 % Consumer Cyclical NA Avg Credit Quality A % Consumer Defensive NA AAA 54.17 300 0.5 -3 % Healthcare NA AA 4.48 % Industrials NA A 18.87 -4 % Real Estate NA BBB 22.48 250 3 Months YTD 1 Year 3 Years 5 Years % Technology NA BB 0.00 0.4 % 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 200 % Utilities NA NR/NA 0.00 Vanguard Interm-Term Bond Index Signal Barclays US Govt 5-10 Yr TR USD 0.3 Turnover 150 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 3.625% 3.21% 0.2 Vanguard Interm-Term Bond Index Signal 0.75 -2.89 -2.44 3.76 7.55 US Treasury Note 3.5% 3.18% 100 Barclays US Govt 5-10 Yr TR USD 0.29 -3.17 -3.22 3.02 5.61 US Treasury Note 1.75% 3.09% Universe(5%) 0.67 -2.02 -1.95 3.13 6.24 US Treasury Note 3.625% 3.05% 0.1 Universe(25%) 0.54 -2.11 -2.00 2.65 5.24 US Treasury Note 3.125% 2.82% 50 Universe(Median) 0.52 -2.14 -2.05 2.60 5.16 US Treasury Note 2% 2.63% US Treasury Note 2.625% 2.38% Universe(75%) 0.49 -2.20 -2.12 2.43 5.06 US Treasury Note 3.625% 2.36% Universe(95%) 0.35 -2.56 -2.33 2.37 4.50 0.0 0 US Treasury Note 1.625% 2.13% US Treasury Note 2.625% 2.12% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 21

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Interm-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 16 0 14 25 Total Return Rank, % 12 10 50 Total Return, % 8 75 6 4 100 2 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 0 Up/Down Market Capture Ratio Oct-10 - Sep-13 -2 100 -4 90 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 80 Up Mkt Capture Ratio, % Vanguard Interm-Term Bond Index Signal Barclays US Govt 5-10 Yr TR USD 70 60 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 50 Vanguard Interm-Term Bond Index Signal 5.65 5.22 1.75 3.91 7.66 5.01 6.89 9.48 10.73 7.02 Barclays US Govt 5-10 Yr TR USD 2.48 4.50 2.25 3.33 9.84 15.38 -3.55 8.62 12.98 3.72 40 30 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 10 2 1.0 5 3 0 0.9 0 10 20 30 40 50 60 70 80 90 100 Down Mkt Capture Ratio, % 0.8 4 Excess Annualized StdDev, % Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Total Annualized StdDev, % 0.7 2 Barclays US Govt 5-10 Yr TR USD 0.6 3 Sharpe Ratio Alpha, % 1 0.5 Return vs. Risk 0.4 2 1 Oct-10 - Sep-13 0.3 4 0.2 1 0.1 Total Annualized Return, % 3 0 0.0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Interm-Term Bond Index Signal Barclays US Govt 5-10 Yr 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 Interm-Term Bond Index Signal 1.16 0.84 84.15 0.81 4.59 1.99 Barclays US Govt 5-10 Yr TR USD 0.00 1.00 100.00 0.60 4.99 0.00 Universe(5%) 1.10 0.66 89.12 0.93 3.58 2.66 0 Universe(25%) 0.98 0.54 86.90 0.89 2.86 2.61 0 1 2 3 4 5 Universe(Median) 0.93 0.53 85.85 0.88 2.83 2.60 Total Annualized StdDev, % Universe(75%) 0.77 0.52 84.65 0.83 2.80 2.56 Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Universe(95%) 0.69 0.52 82.54 0.78 2.79 2.27 Cash Barclays US Govt 5-10 Yr TR USD City of Dover, Delaware General Employee Pension Plan 22

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Long-Term Bond Index I % Cash Portfolio Information Investment Strategy Summary 14.14 % US Stocks Ticker VBLLX % Bonds Morningstar Category Long-term Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks to track the performance of a market-weighted bond index with a % Pref Cat Med Mkt Cap $MM NA long-term dollar-weighted average maturity. The fund employs an indexing investment % Conv Net Assets $MM 5621.45 approach designed to track the performance of the Barclays U.S. Long % Other Government/Credit Float Adjusted Index. This Index includes all medium and larger issues Turnover Ratio 41.00 % Non-US Bonds of U.S. government, investment-grade corporate, and investment-grade international % Assets in Top 10 Holdings 18.41 dollar-denominated bonds that have maturities of greater than 10 years and are publicly Total Number of Holdings 1571.00 issued. All of the fund's investments will be selected through the sampling process, and Manager Name Joshua C. Barrickman at least 80% of the fund's assets will be invested in bonds held in the index. 85.29 Manager Tenure 0.60 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 0.50 15 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 85.29 % United Kingdom NA % Non-US Stocks 0.00 10 % Eurozone NA % Pref 0.07 Portfolio Ratings % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 14.14 % Rank Cat 3 Yr 73 5 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 78 % Australasia NA 10 Year Mstar Rating 0 % Asia - Developed NA % Rank Cat 10 Yr 45 % Asia - Emerging NA -5 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials NA Avg Eff Duration 14.13 2 400 % Communication Services NA Effective Maturity 24.00 -10 % Consumer Cyclical NA Avg Credit Quality A 350 % Consumer Defensive NA AAA 40.09 % Healthcare NA AA 7.27 % Industrials NA A 25.15 300 -15 % Real Estate NA BBB 27.49 3 Months YTD 1 Year 3 Years 5 Years % Technology NA BB 0.00 % Energy NA B 0.00 250 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 Vanguard Long-Term Bond Index I BC Long Government/Credit % Utilities NA NR/NA 0.00 1 200 Turnover 3 Year to 1 3 5 Top Ten Holdings 150 Performance Months Date Year Years Years US Treasury Bond 3.125% 2.28% Vanguard Long-Term Bond Index I -0.98 -8.60 -8.44 4.70 9.08 US Treasury Bond 4.25% 2.18% 100 BC Long Government/Credit -0.83 -8.74 -8.33 4.71 9.07 US Treasury Bond 2.75% 1.93% Universe(5%) 1.35 0.88 3.23 7.75 14.95 US Treasury Bond 4.375% 1.88% Universe(25%) 0.71 -1.57 -0.59 5.50 10.36 US Treasury Bond 4.75% 1.84% 50 Universe(Median) 0.19 -4.08 -3.06 4.69 9.19 US Treasury Bond 2.75% 1.77% US Treasury Bond 4.625% 1.71% Universe(75%) -0.36 -6.70 -5.68 4.22 8.41 US Treasury Bond 4.375% 1.65% Universe(95%) -2.11 -10.80 -11.13 2.14 4.47 0 0 US Treasury Bond 4.375% 1.63% US Treasury Bond 3.125% 1.54% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 23

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Long-Term Bond Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 40 0 30 25 Total Return Rank, % 20 50 Total Return, % 10 75 0 100 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -10 Up/Down Market Capture Ratio -20 Oct-10 - Sep-13 250 -30 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Long-Term Bond Index I BC Long Government/Credit 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Long-Term Bond Index I 5.50 8.40 5.32 2.75 6.71 8.77 1.91 10.43 22.23 8.63 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 7 2 14 14 0 -100 - 50 0 50 100 150 200 250 6 12 12 Down Mkt Capture Ratio, % 5 Excess Annualized StdDev, % 10 10 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Total Annualized StdDev, % 4 BC Long Government/Credit Sharpe Ratio 8 8 Alpha, % 3 1 2 6 6 Return vs. Risk 1 Oct-10 - Sep-13 4 4 9 0 8 2 2 -1 7 Total Annualized Return, % -2 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 Vanguard Long-Term Bond Index I BC Long Government/Credit 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Long-Term Bond Index I -0.05 1.01 99.31 0.52 9.45 0.79 2 BC Long Government/Credit 0.00 1.00 100.00 0.53 9.31 0.00 1 Universe(5%) 6.39 1.35 95.56 1.67 13.19 13.53 0 Universe(25%) 3.53 0.77 79.63 0.98 8.15 8.85 0 5 10 15 20 25 Universe(Median) 2.33 0.39 60.36 0.78 5.92 7.00 Total Annualized StdDev, % Universe(75%) 0.43 0.19 34.52 0.56 4.87 4.91 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Universe(95%) -1.37 0.02 2.99 0.44 2.04 1.89 Cash BC Long Government/Credit City of Dover, Delaware General Employee Pension Plan 24

Quarterly Investment Monitor Data as of 09/30/2013 PIMCO Long Duration Total Return Instl 6.97 % Cash Portfolio Information Investment Strategy Summary 20.75 % US Stocks Ticker PLRIX % Bonds Morningstar Category Long-term Bond % Non-US Stocks Avg Mkt Cap $MM 65992.63 The investment seeks maximum total return, consistent with prudent investment % Pref Cat Med Mkt Cap $MM NA management. The fund invests at least 65% of its total assets in a diversified portfolio % Conv Net Assets $MM 5782.12 of Fixed Income Instruments of varying maturities, which may be represented by % Other forwards or derivatives such as options, futures contracts or swap agreements. It Turnover Ratio 81.00 % Non-US Bonds invests primarily in investment grade debt securities, but may invest up to 10% of its % Assets in Top 10 Holdings 33.49 total assets in high yield securities ("junk bonds") that are rated B or higher by Moody's, Total Number of Holdings 858.00 or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of Manager Name Stephen A. Rodosky comparable quality. 71.80 Manager Tenure 6.17 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 6.97 15 % Canada 0.00 % US Stocks 0.00 % Latin America 0.00 % Bonds 71.80 % United Kingdom 0.00 % Non-US Stocks 0.00 10 % Eurozone 0.00 % Pref 0.26 Portfolio Ratings % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.22 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 20.75 % Rank Cat 3 Yr 83 5 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 53 % Australasia 0.00 10 Year Mstar Rating NA 0 % Asia - Developed 0.00 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 -5 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 0.00 Avg Eff Duration 14.02 2 400 % Communication Services 0.00 Effective Maturity 21.39 -10 % Consumer Cyclical 0.00 Avg Credit Quality NA 350 % Consumer Defensive 0.00 AAA NA % Healthcare 0.00 AA NA % Industrials 0.00 A NA 300 -15 % Real Estate 0.00 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 0.00 BB NA % Energy 0.00 B NA 250 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 100.00 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio PIMCO Long Duration Total Return Instl BC Long Government/Credit % Utilities 0.00 NR/NA NA 1 200 Turnover 3 Year to 1 3 5 Top Ten Holdings 150 Performance Months Date Year Years Years Fin Fut Euro$ Cme 06/15/15 10.89% PIMCO Long Duration Total Return Instl -0.65 -8.37 -7.97 4.28 10.40 US Treasury Bond 3.125% 5.21% 100 BC Long Government/Credit -0.83 -8.74 -8.33 4.71 9.07 US Treasury Bond 5.5% 3.23% Universe(5%) 1.35 0.88 3.23 7.75 14.95 US Treasury Bond 2.75% 2.72% Universe(25%) 0.71 -1.57 -0.59 5.50 10.36 US Treasury Bond 4.5% 2.43% 50 Universe(Median) 0.19 -4.08 -3.06 4.69 9.19 US Treasury Bond 4.25% 2.37% US Treasury Bond 3.125% 2.19% Universe(75%) -0.36 -6.70 -5.68 4.22 8.41 U S Treas Bd Stripped Prin Pmt 1.57% Universe(95%) -2.11 -10.80 -11.13 2.14 4.47 0 0 Quebec Prov Cda 5.75% 1.48% US Treasury Bond 5.25% 1.39% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 25

Quarterly Investment Monitor Data as of 09/30/2013 PIMCO Long Duration Total Return Instl Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 40 0 30 25 Total Return Rank, % 20 50 Total Return, % 10 75 0 100 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -10 Up/Down Market Capture Ratio -20 Oct-10 - Sep-13 250 -30 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % PIMCO Long Duration Total Return Instl BC Long Government/Credit 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 PIMCO Long Duration Total Return Instl NA NA NA NA 7.83 12.38 5.62 11.64 18.57 10.28 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 7 2 14 14 0 -100 - 50 0 50 100 150 200 250 6 12 12 Down Mkt Capture Ratio, % 5 Excess Annualized StdDev, % 10 10 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Total Annualized StdDev, % 4 BC Long Government/Credit Sharpe Ratio 8 8 Alpha, % 3 1 2 6 6 Return vs. Risk 1 Oct-10 - Sep-13 4 4 9 0 8 2 2 -1 7 Total Annualized Return, % -2 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 PIMCO Long Duration Total Return Instl BC Long Government/Credit 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error PIMCO Long Duration Total Return Instl 0.02 0.90 94.30 0.52 8.62 2.26 2 BC Long Government/Credit 0.00 1.00 100.00 0.53 9.31 0.00 1 Universe(5%) 6.39 1.35 95.56 1.67 13.19 13.53 0 Universe(25%) 3.53 0.77 79.63 0.98 8.15 8.85 0 5 10 15 20 25 Universe(Median) 2.33 0.39 60.36 0.78 5.92 7.00 Total Annualized StdDev, % Universe(75%) 0.43 0.19 34.52 0.56 4.87 4.91 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Universe(95%) -1.37 0.02 2.99 0.44 2.04 1.89 Cash BC Long Government/Credit City of Dover, Delaware General Employee Pension Plan 26

Quarterly Investment Monitor Data as of 09/30/2013 Ivy High Income I 11.72 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker IVHIX % Bonds Morningstar Category High Yield Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks to provide total return through a combination of high current Cat Med Mkt Cap $MM 11135.61 income and capital appreciation. The fund invests primarily in a diversified portfolio of 37.97 % Pref % Conv Net Assets $MM 8665.75 high-yield, high-risk, fixed income securities, including secured and unsecured loan % Other assignments, loan participations and other loan instruments (loans), of U.S. and foreign Turnover Ratio 68.00 % Non-US Bonds issuers, the risks of which are, in the judgment of the adviser consistent with the fund's % Assets in Top 10 Holdings 20.35 objective. It invests primarily in lower quality debt securities, which include debt Total Number of Holdings 320.00 securities rated BBB+ or lower. 48.25 Manager Name Bryan C. Krug Manager Tenure 7.62 _________________________________________________________________________ 1.96 Fund Incept Date 07/31/1997 Prospectus Exp Ratio 0.70 Phone Number 800-777-6472 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 11.72 14 % Canada 0.00 % US Stocks 0.03 % Latin America 0.00 % Bonds 48.25 % United Kingdom 0.00 % Non-US Stocks 0.00 12 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 0.00 % Conv 0.07 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 1.96 3 Year Mstar Rating 10 % Africa 0.00 % Non-US Bonds 37.97 % Rank Cat 3 Yr 1 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 2 8 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 5 % Asia - Emerging 0.00 6 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 4 % Basic Materials NA Avg Eff Duration 4.10 2 160 % Communication Services NA Effective Maturity 5.24 % Consumer Cyclical NA Avg Credit Quality B 2 140 % Consumer Defensive NA AAA 0.00 % Healthcare NA AA 0.06 % Industrials NA A 0.45 120 0 % Real Estate NA BBB 0.72 3 Months YTD 1 Year 3 Years 5 Years % Technology NA BB 10.09 % Energy NA B 53.93 100 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA Below B 27.26 Median to 75th Percentile 75th to 95th Percentile Ratio Ivy High Income I BC High Yield Corporate Bond % Utilities NA NR/NA 7.49 1 80 Turnover 3 Year to 1 3 5 Top Ten Holdings 60 Performance Months Date Year Years Years Laureate Educ 144A 9.25% 3.05% Ivy High Income I 2.97 6.86 10.66 11.68 13.94 Us Foods 8.5% 2.71% 40 BC High Yield Corporate Bond 2.28 3.73 7.14 9.19 13.53 Magic 2 Lien (Misys Plc) 2.50% Universe(5%) 3.28 7.29 11.25 10.47 13.14 Us Foods Senior Secured 2.27% Universe(25%) 2.50 4.52 7.96 8.96 12.09 Fmg Resources Pty Ltd 2.19% 20 Universe(Median) 2.12 3.45 6.60 8.21 11.21 Formula 1 (Proj Green Ii) 2.03% Hd Sply 11.5% 1.55% Universe(75%) 1.85 2.63 5.57 7.68 10.18 Delta 2 Sarl Tl 1l 1.47% Universe(95%) 1.35 1.34 3.58 6.05 8.13 0 0 Delta 2 Sarl Tl 1l 1.31% Aa Bond Co Ltd 144a 1.28% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 27

Quarterly Investment Monitor Data as of 09/30/2013 Ivy High Income I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 40 50 Total Return, % 75 20 100 0 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 Up/Down Market Capture Ratio -20 Oct-10 - Sep-13 140 -40 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 120 Up Mkt Capture Ratio, % Ivy High Income I BC High Yield Corporate Bond 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 Ivy High Income I 18.10 7.58 0.59 9.69 4.05 -19.73 46.56 15.62 6.44 17.16 60 BC High Yield Corporate Bond 28.97 11.13 2.74 11.85 1.87 -26.16 58.21 15.12 4.98 15.81 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 5 3 9 5 0 0 20 40 60 80 100 120 140 160 180 4 8 Down Mkt Capture Ratio, % 4 7 3 Excess Annualized StdDev, % Morningstar High Yield Universe Ivy High Income I Total Annualized StdDev, % 2 6 BC High Yield Corporate Bond 2 3 Sharpe Ratio Alpha, % 5 1 4 Return vs. Risk 2 0 1 3 Oct-10 - Sep-13 -1 12 2 1 -2 1 10 Total Annualized Return, % -3 0 0 0 8 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Ivy High Income I BC High Yield Corporate Bond 6 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 4 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Ivy High Income I 4.42 0.75 95.17 2.18 5.10 2.00 2 BC High Yield Corporate Bond 0.00 1.00 100.00 1.35 6.63 0.00 Universe(5%) 2.12 1.25 99.23 1.76 8.93 4.37 0 Universe(25%) 0.24 1.08 98.66 1.35 7.20 2.04 0 2 4 6 8 10 12 14 Universe(Median) -0.83 0.99 97.62 1.21 6.67 1.22 Total Annualized StdDev, % Universe(75%) -1.47 0.90 93.31 1.12 6.11 0.87 Morningstar High Yield Universe Ivy High Income I Universe(95%) -2.89 0.61 78.40 0.90 4.38 0.65 Cash BC High Yield Corporate Bond City of Dover, Delaware General Employee Pension Plan 28

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Equity-Income Adm 2.60 % Cash Portfolio Information Investment Strategy Summary 10.73 % US Stocks Ticker VEIRX % Bonds Morningstar Category Large Value % Non-US Stocks Avg Mkt Cap $MM 71562.86 The investment seeks to provide an above-average level of current income and % Pref Cat Med Mkt Cap $MM 73259.36 reasonable long-term capital appreciation. The fund invests mainly in common stocks of % Conv Net Assets $MM 13972.66 mid-size and large companies whose stocks pay above-average levels of dividend % Other income and are considered to have the potential for capital appreciation. In addition, Turnover Ratio 26.00 % Non-US Bonds the advisors generally look for companies that they believe are committed to paying % Assets in Top 10 Holdings 30.18 dividends consistently. Under normal circumstances, it will invest at least 80% of its Total Number of Holdings 149.00 assets in equity securities. The fund uses multiple investment advisors. Manager Name James P. Stetler 85.88 Manager Tenure 9.76 _________________________________________________________________________ Fund Incept Date 03/21/1988 Prospectus Exp Ratio 0.21 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 88.89 % Cash 2.60 30 % Canada 1.30 % US Stocks 85.88 % Latin America 0.00 % Bonds 0.00 % United Kingdom 4.22 % Non-US Stocks 10.73 25 % Eurozone 3.43 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 2.16 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.79 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 4 20 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 12 % Australasia 0.00 10 Year Mstar Rating 15 % Asia - Developed 0.00 % Rank Cat 10 Yr 7 % Asia - Emerging 0.00 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 3.67 Avg Eff Duration NA 2 180 % Communication Services 4.83 Effective Maturity NA 5 % Consumer Cyclical 7.19 Avg Credit Quality NA 160 % Consumer Defensive 12.43 AAA NA % Healthcare 13.48 AA NA 140 % Industrials 12.38 A NA 0 % Real Estate 0.00 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 12.42 BB NA 120 % Energy 12.39 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 14.71 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio 100 Vanguard Equity-Income Adm S&P 500 Value % Utilities 6.51 NR/NA NA 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Johnson & Johnson 3.84% 60 Vanguard Equity-Income Adm 3.62 19.45 19.61 17.88 10.68 Chevron Corp 3.63% S&P 500 Value 3.84 20.17 22.15 15.86 8.38 Exxon Mobil Corporation 3.50% 40 Universe(5%) 7.03 25.75 29.44 18.47 11.90 Microsoft Corporation 3.48% Universe(25%) 5.54 22.67 25.09 16.30 10.18 Wells Fargo & Co 3.29% Universe(Median) 4.64 20.61 22.24 15.23 9.04 JPMorgan Chase & Co 3.01% 20 Merck & Co Inc 2.69% Universe(75%) 3.89 19.04 19.58 13.78 7.81 General Electric Co 2.57% Universe(95%) 2.75 14.70 13.70 11.21 6.14 0 0 Pfizer Inc 2.20% AT&T Inc 1.97% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 29

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Equity-Income Adm 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 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -30 Up/Down Market Capture Ratio Oct-10 - Sep-13 -40 180 -50 160 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 140 Up Mkt Capture Ratio, % Vanguard Equity-Income Adm S&P 500 Value 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 Vanguard Equity-Income Adm 25.24 13.69 4.52 20.77 4.99 -30.86 17.26 14.99 10.69 13.58 80 S&P 500 Value 30.36 15.03 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 6 2 18 7 0 5 0 20 40 60 80 100 120 140 160 180 16 6 4 Down Mkt Capture Ratio, % 14 Excess Annualized StdDev, % 3 5 Morningstar Large Value Universe Vanguard Equity-Income Adm Total Annualized StdDev, % 12 S&P 500 Value 2 Sharpe Ratio 4 Alpha, % 1 10 1 0 8 3 Return vs. Risk -1 6 Oct-10 - Sep-13 -2 2 30 4 -3 1 -4 2 25 Total Annualized Return, % -5 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Equity-Income Adm 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 Vanguard Equity-Income Adm 5.28 0.75 92.18 1.59 10.69 4.53 5 S&P 500 Value 0.00 1.00 100.00 1.14 13.67 0.00 Universe(5%) 4.53 1.19 98.84 1.50 16.49 6.62 0 Universe(25%) 1.27 1.04 97.54 1.22 14.53 4.36 0 5 10 15 20 25 Universe(Median) -0.03 0.97 95.91 1.12 13.43 3.13 Total Annualized StdDev, % Universe(75%) -1.46 0.88 92.52 1.02 12.27 2.29 Morningstar Large Value Universe Vanguard Equity-Income Adm Universe(95%) -4.29 0.67 84.56 0.81 9.78 1.65 Cash S&P 500 Value City of Dover, Delaware General Employee Pension Plan 30

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Morgan Growth Adm 3.67 4.46 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VMRAX % Bonds Morningstar Category Large Growth % Non-US Stocks Avg Mkt Cap $MM 34583.13 The investment seeks long-term growth of capital. The fund invests mainly in the stocks % Pref Cat Med Mkt Cap $MM 56784.53 of mid- and large-capitalization U.S. companies whose revenues and/or earnings are % Conv Net Assets $MM 9941.09 expected to grow faster than those of the average company in the market. It uses % Other multiple investment advisors. Turnover Ratio 49.00 % Non-US Bonds % Assets in Top 10 Holdings 17.04 _________________________________________________________________________ Total Number of Holdings 331.00 Manager Name James P. Stetler Manager Tenure 9.76 91.87 Fund Incept Date 12/31/1968 Prospectus Exp Ratio 0.26 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 95.37 % Cash 3.67 30 % Canada 0.64 % US Stocks 91.87 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.56 % Non-US Stocks 4.46 25 % Eurozone 1.47 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 1.09 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 41 20 % Middle East 0.51 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 40 % Australasia 0.11 10 Year Mstar Rating 15 % Asia - Developed 0.26 % Rank Cat 10 Yr 33 % Asia - Emerging 0.00 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 3.53 Avg Eff Duration NA 2 300 % Communication Services 2.71 Effective Maturity NA 5 % Consumer Cyclical 19.26 Avg Credit Quality NA % Consumer Defensive 7.05 AAA NA 250 % Healthcare 15.57 AA NA % Industrials 13.11 A NA 0 % Real Estate 0.38 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 27.14 BB NA 200 % Energy 4.45 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 6.80 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Morgan Growth Adm S&P 500 Growth % Utilities 0.00 NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Google, Inc. Class A 2.70% 100 Vanguard Morgan Growth Adm 8.71 22.02 20.86 15.78 10.95 Cisco Systems Inc 2.68% S&P 500 Growth 6.60 19.44 17.00 16.73 11.58 Microsoft Corporation 2.14% Universe(5%) 13.89 28.81 29.58 19.02 15.43 Apple Inc 2.05% 50 Universe(25%) 10.80 23.15 23.10 16.90 12.27 Wal-Mart Stores Inc 1.34% Universe(Median) 8.99 20.99 20.13 15.34 10.38 Monsanto Company 1.29% Home Depot, Inc. 1.27% Universe(75%) 7.45 18.80 17.74 13.65 9.08 Costco Wholesale Corporation 1.22% Universe(95%) 5.13 15.81 14.03 11.28 6.68 0 0 TJX Companies 1.18% Biogen Idec Inc 1.17% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 31

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Morgan Growth Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 20 50 Total Return, % 75 0 100 -20 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 Up/Down Market Capture Ratio -40 Oct-10 - Sep-13 250 -60 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Morgan Growth Adm S&P 500 Growth 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Morgan Growth Adm 33.91 10.61 9.31 11.32 11.36 -41.33 36.31 18.90 -2.42 15.25 S&P 500 Growth 27.08 6.97 1.14 11.01 9.13 -34.92 31.57 15.05 4.65 14.61 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 1 2 18 9 0 0 25 50 75 100 125 150 175 200 225 250 0 16 8 Down Mkt Capture Ratio, % -1 14 7 Excess Annualized StdDev, % Morningstar Large Growth Universe Vanguard Morgan Growth Adm Total Annualized StdDev, % -2 12 6 S&P 500 Growth Sharpe Ratio Alpha, % -3 10 5 1 -4 8 4 Return vs. Risk -5 6 3 Oct-10 - Sep-13 35 -6 4 2 30 -7 2 1 Total Annualized Return, % -8 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 Vanguard Morgan Growth Adm S&P 500 Growth 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 10 Vanguard Morgan Growth Adm -3.96 1.22 94.40 1.08 14.54 4.27 S&P 500 Growth 0.00 1.00 100.00 1.39 11.60 0.00 5 Universe(5%) 0.35 1.38 96.47 1.35 17.06 8.35 0 Universe(25%) -1.82 1.22 93.94 1.19 15.05 5.44 0 5 10 15 20 25 30 Universe(Median) -3.39 1.17 92.24 1.10 14.09 4.47 Total Annualized StdDev, % Universe(75%) -5.13 1.10 88.98 0.97 13.26 3.73 Morningstar Large Growth Universe Vanguard Morgan Growth Adm Universe(95%) -7.73 0.95 80.39 0.78 11.60 2.60 Cash S&P 500 Growth City of Dover, Delaware General Employee Pension Plan 32

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard PRIMECAP Inv 4.77 % Cash Portfolio Information Investment Strategy Summary 12.10 % US Stocks Ticker VPMCX % Bonds Morningstar Category Large Growth % Non-US Stocks Avg Mkt Cap $MM 51900.61 The investment seeks long-term capital appreciation. The fund invests in stocks % Pref Cat Med Mkt Cap $MM 56784.53 considered to have above-average earnings growth potential that is not reflected in % Conv Net Assets $MM 36188.11 their current market prices. Its portfolio consists predominantly of large- and % Other mid-capitalization stocks. Turnover Ratio 6.00 % Non-US Bonds % Assets in Top 10 Holdings 41.27 _________________________________________________________________________ Total Number of Holdings 131.00 Manager Name Joel P. Fried Manager Tenure 24.77 83.13 Fund Incept Date 11/01/1984 Prospectus Exp Ratio 0.45 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 87.29 % Cash 4.77 30 % Canada 1.66 % US Stocks 83.13 % Latin America 0.04 % Bonds 0.00 % United Kingdom 0.79 % Non-US Stocks 12.10 25 % Eurozone 1.01 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 8.54 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 26 20 % Middle East 0.00 5 Year Mstar Rating % Japan 0.66 % Rank Cat 5 Yr 39 % Australasia 0.00 10 Year Mstar Rating 15 % Asia - Developed 0.00 % Rank Cat 10 Yr 7 % Asia - Emerging 0.00 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 3.15 Avg Eff Duration NA 2 300 % Communication Services 1.73 Effective Maturity NA 5 % Consumer Cyclical 5.65 Avg Credit Quality NA % Consumer Defensive 0.68 AAA NA 250 % Healthcare 32.91 AA NA % Industrials 13.65 A NA 0 % Real Estate 0.00 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 31.66 BB NA 200 % Energy 4.07 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 6.36 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard PRIMECAP Inv S&P 500 Growth % Utilities 0.13 NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Biogen Idec Inc 6.63% 100 Vanguard PRIMECAP Inv 7.29 26.39 29.63 16.71 10.99 Amgen Inc 5.39% S&P 500 Growth 6.60 19.44 17.00 16.73 11.58 Google, Inc. Class A 4.30% Universe(5%) 13.89 28.81 29.58 19.02 15.43 Roche Holding AG 4.30% 50 Universe(25%) 10.80 23.15 23.10 16.90 12.27 Microsoft Corporation 3.89% Universe(Median) 8.99 20.99 20.13 15.34 10.38 Eli Lilly and Company 3.68% FedEx Corporation 3.48% Universe(75%) 7.45 18.80 17.74 13.65 9.08 Texas Instruments, Inc. 3.47% Universe(95%) 5.13 15.81 14.03 11.28 6.68 0 0 Adobe Systems Inc 3.12% Novartis AG ADR 3.02% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 33

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard PRIMECAP Inv Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 20 50 Total Return, % 75 0 100 -20 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 Up/Down Market Capture Ratio -40 Oct-10 - Sep-13 250 -60 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard PRIMECAP Inv S&P 500 Growth 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard PRIMECAP Inv 37.75 18.31 8.49 12.30 11.49 -32.41 34.45 12.89 -1.84 15.27 S&P 500 Growth 27.08 6.97 1.14 11.01 9.13 -34.92 31.57 15.05 4.65 14.61 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 1 2 18 9 0 0 25 50 75 100 125 150 175 200 225 250 0 16 8 Down Mkt Capture Ratio, % -1 14 7 Excess Annualized StdDev, % Morningstar Large Growth Universe Vanguard PRIMECAP Inv Total Annualized StdDev, % -2 12 6 S&P 500 Growth Sharpe Ratio Alpha, % -3 10 5 1 -4 8 4 Return vs. Risk -5 6 3 Oct-10 - Sep-13 35 -6 4 2 30 -7 2 1 Total Annualized Return, % -8 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 Vanguard PRIMECAP Inv S&P 500 Growth 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 10 Vanguard PRIMECAP Inv -1.39 1.10 91.79 1.23 13.30 3.98 S&P 500 Growth 0.00 1.00 100.00 1.39 11.60 0.00 5 Universe(5%) 0.35 1.38 96.47 1.35 17.06 8.35 0 Universe(25%) -1.82 1.22 93.94 1.19 15.05 5.44 0 5 10 15 20 25 30 Universe(Median) -3.39 1.17 92.24 1.10 14.09 4.47 Total Annualized StdDev, % Universe(75%) -5.13 1.10 88.98 0.97 13.26 3.73 Morningstar Large Growth Universe Vanguard PRIMECAP Inv Universe(95%) -7.73 0.95 80.39 0.78 11.60 2.60 Cash S&P 500 Growth City of Dover, Delaware General Employee Pension Plan 34

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Mid-Cap Value Index Admiral 1.51 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VMVAX % Bonds Morningstar Category Mid-Cap Value % Non-US Stocks Avg Mkt Cap $MM 8639.42 The investment seeks to track the performance of a benchmark index that measures the % Pref Cat Med Mkt Cap $MM 7873.53 investment return of mid-capitalization value stocks. The fund employs an indexing % Conv Net Assets $MM 3959.52 investment approach designed to track the performance of the CRSP US Mid Cap Value % Other Index, a broadly diversified index of value stocks of mid-size U.S. companies. It Turnover Ratio 33.00 % Non-US Bonds attempts to replicate the target index by investing all, or substantially all, of its assets % Assets in Top 10 Holdings 10.77 in the stocks that make up the index, holding each stock in approximately the same Total Number of Holdings 206.00 proportion as its weighting in the index. Manager Name Donald M. Butler Manager Tenure 7.13 _________________________________________________________________________ 98.07 Fund Incept Date 09/27/2011 Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 98.48 % Cash 0.42 35 % Canada 0.00 % US Stocks 98.07 % Latin America 0.00 % Bonds 0.00 % United Kingdom 1.18 % Non-US Stocks 1.51 30 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 0.34 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating 25 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 31 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 20 20 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.00 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 15 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 10 % Basic Materials 5.99 Avg Eff Duration NA 3 300 % Communication Services 1.45 Effective Maturity NA % Consumer Cyclical 15.05 Avg Credit Quality NA 5 % Consumer Defensive 9.81 AAA NA 250 % Healthcare 9.06 AA NA % Industrials 12.32 A NA 0 % Real Estate 4.24 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 9.55 BB NA 2 200 % Energy 5.18 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 17.97 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Mid-Cap Value Index Admiral CRSP US Mid Cap TR USD % Utilities 9.37 NR/NA NA 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Macy's Inc 1.30% 1 100 Vanguard Mid-Cap Value Index Admiral 6.52 24.52 28.94 17.07 12.90 Delta Air Lines Inc 1.27% CRSP US Mid Cap TR USD 7.71 24.53 28.08 17.30 12.66 Delphi Automotive PLC 1.18% Universe(5%) 10.72 31.12 34.37 20.30 15.07 ConAgra Foods, Inc. 1.06% 50 Universe(25%) 8.70 25.60 30.04 17.86 12.90 Boston Scientific, Inc. 1.03% Universe(Median) 7.50 23.12 27.27 16.50 12.15 Mattel, Inc. 1.02% Hartford Financial Services Group Inc 0.99% Universe(75%) 6.58 20.84 24.09 14.82 10.01 Regions Financial Corporation 0.99% Universe(95%) 4.42 16.36 18.12 9.86 6.41 0 0 Northeast Utilities 0.98% M&T Bank Corp 0.95% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 35

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Mid-Cap Value Index Admiral 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 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -20 Up/Down Market Capture Ratio -40 Oct-10 - Sep-13 250 -60 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Mid-Cap Value Index Admiral CRSP US Mid Cap TR USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Mid-Cap Value Index Admiral NA NA NA NA -4.28 -36.54 37.72 21.81 -0.30 16.02 CRSP US Mid Cap TR USD 35.96 20.28 13.31 15.32 7.04 -41.83 36.90 26.16 -1.79 16.69 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 3 2 20 9 0 2 18 0 25 50 75 100 125 150 175 200 225 8 Down Mkt Capture Ratio, % 1 16 7 Excess Annualized StdDev, % Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Total Annualized StdDev, % 0 14 6 CRSP US Mid Cap TR USD -1 12 Sharpe Ratio Alpha, % 5 -2 1 10 4 Return vs. Risk -3 8 3 Oct-10 - Sep-13 -4 6 30 2 -5 4 -6 2 1 25 Total Annualized Return, % -7 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Mid-Cap Value Index Admiral CRSP US Mid Cap TR USD 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Mid-Cap Value Index Admiral 0.23 0.97 97.67 1.18 14.17 2.19 5 CRSP US Mid Cap TR USD 0.00 1.00 100.00 1.18 14.39 0.00 Universe(5%) 2.85 1.31 98.51 1.37 19.61 8.98 0 Universe(25%) 0.57 1.12 97.49 1.16 16.39 5.53 0 5 10 15 20 25 30 35 Universe(Median) -1.17 1.07 95.23 1.08 15.53 3.75 Total Annualized StdDev, % Universe(75%) -3.17 0.95 91.87 0.97 14.53 2.76 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Universe(95%) -6.25 0.76 79.78 0.72 11.59 2.24 Cash CRSP US Mid Cap TR USD City of Dover, Delaware General Employee Pension Plan 36

Quarterly Investment Monitor Data as of 09/30/2013 Target Small Capitalization Value T 6.20 1.89 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker TASVX % Bonds Morningstar Category Small Value % Non-US Stocks Avg Mkt Cap $MM 2156.13 The investment seeks above-average capital appreciation. The Portfolio seeks % Pref Cat Med Mkt Cap $MM 1928.09 investments that will increase in value. It normally invests at least 80% of its investable % Conv Net Assets $MM 1664.26 assets in common stocks of small companies. Small companies are those companies with % Other market capitalizations comparable to those in the Russell 2000 Value Index. As of Turnover Ratio 37.00 % Non-US Bonds December 31, 2012, the Russell 2000 Value Index median market capitalization was % Assets in Top 10 Holdings 8.85 approximately $472 million and the largest company by market capitalization was $4.664 Total Number of Holdings 669.00 billion. Market capitalization is measured at the time of purchase. Manager Name Paul E. Viera, Jr. Manager Tenure 11.76 _________________________________________________________________________ 91.72 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 97.98 % Cash 6.20 40 % Canada 0.95 % US Stocks 91.72 % Latin America 0.14 % Bonds 0.00 35 % United Kingdom 0.02 % Non-US Stocks 1.89 % Eurozone 0.66 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % 30 % Europe - Emerging 0.00 % Other 0.19 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 41 % Middle East 0.23 5 Year Mstar Rating 25 % Japan 0.00 % Rank Cat 5 Yr 37 % Australasia 0.00 10 Year Mstar Rating 20 % Asia - Developed 0.00 % Rank Cat 10 Yr 5 % Asia - Emerging 0.02 15 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 5.80 Avg Eff Duration NA 2 200 10 % Communication Services 0.49 Effective Maturity NA % Consumer Cyclical 10.93 Avg Credit Quality NA 180 5 % Consumer Defensive 4.42 AAA NA % Healthcare 5.91 AA NA 160 % Industrials 23.63 A NA 0 % Real Estate 4.87 BBB NA 3 Months YTD 1 Year 3 Years 5 Years 140 % Technology 12.84 BB NA % Energy 6.45 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio 120 % Financial Services 21.23 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio Target Small Capitalization Value T S&P 600 Value % Utilities 3.43 NR/NA NA 1 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Bristow Group, Inc. 1.20% Target Small Capitalization Value T 8.43 24.88 29.57 17.20 11.59 60 Hexcel Corporation 0.95% S&P 600 Value 9.53 27.71 31.78 19.97 11.48 Aaron's, Inc. 0.94% Universe(5%) 10.95 30.05 37.11 20.84 16.87 Protective Life Corp 0.94% 40 Universe(25%) 9.20 27.44 32.80 18.57 12.55 Silgan Holdings, Inc. 0.88% Universe(Median) 8.40 24.45 29.36 17.20 11.32 Littelfuse Inc. 0.82% 20 Firstmerit Corp 0.80% Universe(75%) 7.31 22.24 26.79 15.54 10.08 Group 1 Automotive Inc 0.79% Universe(95%) 4.62 17.65 22.07 11.43 8.63 0 0 Raymond James Financial Inc 0.78% GATX Corp 0.76% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 37

Quarterly Investment Monitor Data as of 09/30/2013 Target Small Capitalization Value T 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 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -20 Up/Down Market Capture Ratio -40 Oct-10 - Sep-13 120 -60 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 100 Up Mkt Capture Ratio, % Target Small Capitalization Value T S&P 600 Value 80 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 60 Target Small Capitalization Value T 47.10 24.02 10.10 17.72 0.52 -27.45 26.69 23.63 -0.48 14.14 S&P 600 Value 40.03 23.25 6.45 19.57 -5.54 -29.51 22.85 24.72 -1.38 18.21 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 22 10 0 20 9 0 20 40 60 80 100 120 140 160 2 18 Down Mkt Capture Ratio, % 8 1 Excess Annualized StdDev, % 16 Morningstar SmallCap Value Universe Target Small Capitalization Value T Total Annualized StdDev, % 7 0 S&P 600 Value 14 6 Sharpe Ratio Alpha, % -1 12 1 5 10 -2 Return vs. Risk 4 8 -3 Oct-10 - Sep-13 3 6 30 -4 4 2 -5 2 1 25 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 -0.35 0.88 96.63 1.13 15.02 3.37 5 S&P 600 Value 0.00 1.00 100.00 1.17 16.69 0.00 Universe(5%) 2.36 1.16 98.05 1.28 20.04 9.05 0 Universe(25%) -0.50 1.05 96.82 1.10 17.90 5.10 0 5 10 15 20 25 Universe(Median) -1.89 0.95 95.39 1.03 16.39 4.17 Total Annualized StdDev, % Universe(75%) -3.21 0.91 92.86 0.95 15.54 3.12 Morningstar SmallCap Value Universe Target Small Capitalization Value T Universe(95%) -5.04 0.67 87.61 0.86 13.03 2.43 Cash S&P 600 Value City of Dover, Delaware General Employee Pension Plan 38

Quarterly Investment Monitor Data as of 09/30/2013 American Funds New Perspective R6 3.731.72 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker RNPGX 44.16 % Bonds Morningstar Category World Stock % Non-US Stocks Avg Mkt Cap $MM 46827.29 The investment seeks long-term growth of capital; future income is a secondary % Pref Cat Med Mkt Cap $MM 37045.94 objective. The fund seeks to take advantage of investment opportunities generated by % Conv Net Assets $MM 48763.42 changes in international trade patterns and economic and political relationships by % Other investing in common stocks of companies located around the world. In pursuing its Turnover Ratio 16.00 % Non-US Bonds primary investment objective, it invests primarily in common stocks that the investment % Assets in Top 10 Holdings 18.52 adviser believes have the potential for growth. In pursuing its secondary objective, the Total Number of Holdings 271.00 fund invests in common stocks of companies with the potential to pay dividends in the Manager Name Gregg E. Ireland future. 50.14 Manager Tenure 20.84 Fund Incept Date 03/13/1973 _________________________________________________________________________ Prospectus Exp Ratio 0.46 Phone Number 800-421-4225 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 46.83 % Cash 3.73 30 % Canada 2.03 % US Stocks 44.16 % Latin America 0.70 % Bonds 0.24 % United Kingdom 8.87 % Non-US Stocks 50.14 25 % Eurozone 15.67 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 10.32 % Conv 0.01 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 1.72 3 Year Mstar Rating 20 % Africa 2.82 % Non-US Bonds 0.00 % Rank Cat 3 Yr 24 % Middle East 0.00 5 Year Mstar Rating % Japan 6.13 % Rank Cat 5 Yr 21 15 % Australasia 1.45 10 Year Mstar Rating % Asia - Developed 4.28 % Rank Cat 10 Yr 18 % Asia - Emerging 0.89 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 5 % Basic Materials 5.54 Avg Eff Duration NA 3 180 % Communication Services 3.59 Effective Maturity NA % Consumer Cyclical 18.42 Avg Credit Quality NA 160 0 % Consumer Defensive 11.79 AAA NA % Healthcare 15.52 AA NA 140 % Industrials 11.65 A NA -5 % Real Estate 0.16 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 12.57 BB NA 2 120 % Energy 5.70 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 14.74 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio 100 American Funds New Perspective R6 MSCI AC World Index ND USD % Utilities 0.33 NR/NA NA Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Novo Nordisk A/S 3.97% 1 60 American Funds New Perspective R6 8.35 17.12 22.05 12.77 10.45 Amazon.com Inc 2.48% MSCI AC World Index ND USD 7.90 14.43 17.73 10.21 7.71 Google, Inc. Class A 1.92% 40 Universe(5%) 12.17 24.07 29.22 14.96 12.45 Home Depot, Inc. 1.84% Universe(25%) 10.19 20.13 26.16 13.06 9.90 Naspers Ltd 1.55% Universe(Median) 8.29 16.65 21.36 10.98 8.25 Bayer AG 1.46% 20 CME Group, Inc. Class A 1.41% Universe(75%) 6.55 12.89 15.69 8.82 6.72 Taiwan Semiconductor Manufacturing Co Ltd 1.41% Universe(95%) 3.55 -1.47 4.25 2.40 3.16 0 0 American Express Co 1.27% ACE Ltd 1.20% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 39

Quarterly Investment Monitor Data as of 09/30/2013 American Funds New Perspective R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 20 50 Total Return, % 75 0 100 -20 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 Up/Down Market Capture Ratio -40 Oct-10 - Sep-13 140 -60 120 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 100 Up Mkt Capture Ratio, % American Funds New Perspective R6 MSCI AC World Index ND USD 80 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 60 American Funds New Perspective R6 36.76 14.27 11.28 19.87 16.03 -37.83 37.72 13.11 -7.33 21.19 MSCI AC World Index ND USD 33.99 15.23 10.84 20.95 11.66 -42.20 34.63 12.67 -7.35 16.13 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 0 6 2 20 12 -20 18 0 20 40 60 80 100 120 140 160 180 200 4 10 Down Mkt Capture Ratio, % 16 2 Excess Annualized StdDev, % Morningstar World Stock Universe American Funds New Perspective R6 Total Annualized StdDev, % 14 8 MSCI AC World Index ND USD 0 12 Sharpe Ratio Alpha, % -2 1 10 6 Return vs. Risk 8 -4 4 Oct-10 - Sep-13 6 -6 25 4 2 20 -8 2 15 Total Annualized Return, % -10 0 0 0 10 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 American Funds New Perspective R6 MSCI AC World Index ND USD 0 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -5 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error American Funds New Perspective R6 2.83 0.94 97.12 0.92 14.08 2.53 -10 MSCI AC World Index ND USD 0.00 1.00 100.00 0.73 14.71 0.00 -15 Universe(5%) 5.88 1.18 97.29 1.14 18.74 11.22 -20 Universe(25%) 3.45 1.09 95.18 0.93 16.74 6.92 0 5 10 15 20 25 30 35 Universe(Median) 1.38 1.01 92.35 0.79 15.43 5.03 Total Annualized StdDev, % Universe(75%) -1.50 0.89 83.11 0.62 13.81 3.67 Morningstar World Stock Universe American Funds New Perspective R6 Universe(95%) -8.20 0.59 62.06 0.22 10.37 2.59 Cash MSCI AC World Index ND USD City of Dover, Delaware General Employee Pension Plan 40

Quarterly Investment Monitor Data as of 09/30/2013 Harding Loevner Global Equity Inst 2.34 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker HLMVX % Bonds Morningstar Category World Stock 55.13 % Non-US Stocks Avg Mkt Cap $MM 34509.06 The investment seeks long-term capital appreciation. The fund invests in companies % Pref Cat Med Mkt Cap $MM 37045.94 based in the U.S. and other developed markets, as well as in emerging and frontier % Conv Net Assets $MM 602.34 markets. It invests at least 80% of net assets in common stocks, preferred stock, rights % Other and warrants issued by companies that are based both inside and outside the United Turnover Ratio 32.00 % Non-US Bonds States, securities convertible into such securities and investment companies that invest % Assets in Top 10 Holdings 28.13 41.69 in the types of securities in which the fund would normally invest. The fund normally Total Number of Holdings 67.00 holds 35-75 investments across at least 15 countries. Manager Name Peter J. Baughan Manager Tenure 10.59 _________________________________________________________________________ Fund Incept Date 11/29/1996 Prospectus Exp Ratio 0.95 Phone Number 877-435-8105 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 56.94 % Cash 0.84 30 % Canada 0.00 % US Stocks 55.13 % Latin America 2.67 % Bonds 0.00 % United Kingdom 6.65 % Non-US Stocks 41.69 25 % Eurozone 7.12 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 7.60 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 1.85 % Other 2.34 3 Year Mstar Rating 20 % Africa 1.32 % Non-US Bonds 0.00 % Rank Cat 3 Yr 68 % Middle East 0.00 5 Year Mstar Rating % Japan 8.46 % Rank Cat 5 Yr 45 15 % Australasia 0.93 10 Year Mstar Rating % Asia - Developed 2.06 % Rank Cat 10 Yr 43 % Asia - Emerging 4.40 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 5 % Basic Materials 6.77 Avg Eff Duration NA 3 180 % Communication Services 2.44 Effective Maturity NA % Consumer Cyclical 12.54 Avg Credit Quality NA 160 0 % Consumer Defensive 11.83 AAA NA % Healthcare 6.75 AA NA 140 % Industrials 7.78 A NA -5 % Real Estate 0.00 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 27.03 BB NA 2 120 % Energy 5.80 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 19.06 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio 100 Harding Loevner Global Equity Inst MSCI AC World Index ND USD % Utilities 0.00 NR/NA NA Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Wells Fargo & Co 4.12% 1 60 Harding Loevner Global Equity Inst 8.24 12.17 13.37 9.86 8.99 Google, Inc. Class A 3.29% MSCI AC World Index ND USD 7.90 14.43 17.73 10.21 7.71 Microsoft Corporation 3.15% 40 Universe(5%) 12.17 24.07 29.22 14.96 12.45 eBay Inc 2.87% Universe(25%) 10.19 20.13 26.16 13.06 9.90 Nestle SA ADR 2.79% Universe(Median) 8.29 16.65 21.36 10.98 8.25 Coach, Inc. 2.54% 20 Schlumberger NV 2.44% Universe(75%) 6.55 12.89 15.69 8.82 6.72 Unicharm Corp 2.44% Universe(95%) 3.55 -1.47 4.25 2.40 3.16 0 0 Dassault Systemes SA 2.28% JPMorgan Chase & Co 2.21% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 41

Quarterly Investment Monitor Data as of 09/30/2013 Harding Loevner Global Equity Inst Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 20 50 Total Return, % 75 0 100 -20 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 Up/Down Market Capture Ratio -40 Oct-10 - Sep-13 140 -60 120 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 100 Up Mkt Capture Ratio, % Harding Loevner Global Equity Inst MSCI AC World Index ND USD 80 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 60 Harding Loevner Global Equity Inst 31.51 7.61 16.65 17.84 16.39 -38.29 40.16 15.55 -8.22 17.42 MSCI AC World Index ND USD 33.99 15.23 10.84 20.95 11.66 -42.20 34.63 12.67 -7.35 16.13 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 0 6 2 20 12 -20 18 0 20 40 60 80 100 120 140 160 180 200 4 10 Down Mkt Capture Ratio, % 16 2 Excess Annualized StdDev, % Morningstar World Stock Universe Harding Loevner Global Equity Inst Total Annualized StdDev, % 14 8 MSCI AC World Index ND USD 0 12 Sharpe Ratio Alpha, % -2 1 10 6 Return vs. Risk 8 -4 4 Oct-10 - Sep-13 6 -6 25 4 2 20 -8 2 15 Total Annualized Return, % -10 0 0 0 10 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 Harding Loevner Global Equity Inst MSCI AC World Index ND USD 0 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -5 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Harding Loevner Global Equity Inst 0.25 0.94 93.26 0.72 14.34 3.82 -10 MSCI AC World Index ND USD 0.00 1.00 100.00 0.73 14.71 0.00 -15 Universe(5%) 5.88 1.18 97.29 1.14 18.74 11.22 -20 Universe(25%) 3.45 1.09 95.18 0.93 16.74 6.92 0 5 10 15 20 25 30 35 Universe(Median) 1.38 1.01 92.35 0.79 15.43 5.03 Total Annualized StdDev, % Universe(75%) -1.50 0.89 83.11 0.62 13.81 3.67 Morningstar World Stock Universe Harding Loevner Global Equity Inst Universe(95%) -8.20 0.59 62.06 0.22 10.37 2.59 Cash MSCI AC World Index ND USD City of Dover, Delaware General Employee Pension Plan 42

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Emerging Mkts Stock Idx I 1.89 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VEMIX % Bonds Morningstar Category Diversified Emerging Mkts % Non-US Stocks Avg Mkt Cap $MM 17565.76 The investment seeks to track the performance of a benchmark index that measures the % Pref Cat Med Mkt Cap $MM 18214.07 investment return of stocks issued by companies located in emerging market countries. % Conv Net Assets $MM 65717.91 The fund employs an indexing investment approach by investing substantially all % Other (approximately 95%) of its assets in the common stocks included in the FTSE Emerging Turnover Ratio 8.00 % Non-US Bonds Index, while employing a form of sampling to reduce risk. The FTSE Emerging Index % Assets in Top 10 Holdings 13.34 includes approximately 851 common stocks of companies located in emerging markets Total Number of Holdings 925.00 around the world. As of May 31, 2013, the largest markets covered in the index were Manager Name Michael Perre China, Brazil, Taiwan, and India. Manager Tenure 5.09 97.38 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 0.25 % Cash 0.05 12 % Canada 0.00 % US Stocks 0.23 % Latin America 21.38 % Bonds 0.00 10 % United Kingdom 0.00 % Non-US Stocks 97.38 % Eurozone 0.10 % Pref 1.89 Portfolio Ratings 8 % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % 3 Year Mstar Rating 6 % Europe - Emerging 9.91 % Other 0.45 % Africa 9.78 % Non-US Bonds 0.00 % Rank Cat 3 Yr 59 4 % Middle East 0.57 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 44 2 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 13.69 % Rank Cat 10 Yr 35 0 % Asia - Emerging 44.33 -2 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality -4 % Basic Materials 9.70 Avg Eff Duration NA 3 180 % Communication Services 10.81 Effective Maturity NA -6 % Consumer Cyclical 7.55 Avg Credit Quality NA 160 % Consumer Defensive 9.17 AAA NA -8 % Healthcare 1.60 AA NA 140 % Industrials 5.84 A NA -10 % Real Estate 2.50 BBB NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 11.30 BB NA 2 120 % Energy 11.39 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 26.38 Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio 100 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD % Utilities 3.77 NR/NA NA Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years China Mobile Ltd. 1.81% 1 60 Vanguard Emerging Mkts Stock Idx I 4.82 -6.50 -0.10 -0.91 6.52 China Construction Bank Corp H Shares 1.76% FTSE Emerging NR USD 4.30 -5.26 0.17 -1.11 7.07 Industrial And Commercial Bank Of China Ltd. H Shares 1.55% 40 Universe(5%) 9.20 4.08 9.93 3.63 11.28 Taiwan Semiconductor Manufacturing Co Ltd ADR 1.39% Universe(25%) 7.07 -2.12 3.76 0.86 7.42 Tencent Holdings Ltd. 1.36% Universe(Median) 5.64 -4.62 2.05 -0.65 6.09 Taiwan Semiconductor Manufacturing Co Ltd 1.23% 20 America Movil, S.A.B. de C.V. 1.12% Universe(75%) 3.64 -6.29 -0.33 -2.02 4.87 Naspers Ltd 1.07% Universe(95%) -0.30 -8.93 -6.05 -7.23 0.81 0 0 Bank Of China Ltd. H Shares 1.03% Mtn Group Limited 1.03% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 43

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Emerging Mkts Stock Idx I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 120 0 100 25 Total Return Rank, % 80 60 50 Total Return, % 40 75 20 0 100 -20 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -40 Up/Down Market Capture Ratio Oct-10 - Sep-13 -60 225 -80 200 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 175 Up Mkt Capture Ratio, % Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Emerging Mkts Stock Idx I 57.97 26.24 32.35 29.57 39.15 -52.74 76.35 19.06 -18.63 18.90 100 FTSE Emerging NR USD 53.69 27.58 34.70 32.84 39.41 -53.03 82.15 19.60 -19.15 17.58 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 5 25 9 0 4 0 20 40 60 80 100 120 140 160 180 200 8 3 0.2 Down Mkt Capture Ratio, % 20 7 Excess Annualized StdDev, % 2 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Total Annualized StdDev, % 0.1 6 FTSE Emerging NR USD 1 15 Sharpe Ratio Alpha, % 0 5 0.0 -1 4 Return vs. Risk 10 -2 -0.1 3 Oct-10 - Sep-13 -3 6 2 -4 5 -0.2 4 -5 1 2 Total Annualized Return, % -6 -0.3 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile -2 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD -4 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 -8 Vanguard Emerging Mkts Stock Idx I 0.32 1.02 97.11 0.05 20.02 3.42 -10 FTSE Emerging NR USD 0.00 1.00 100.00 0.03 19.39 0.00 -12 Universe(5%) 4.74 1.13 97.03 0.27 22.56 8.66 -14 Universe(25%) 1.97 1.03 95.69 0.14 20.59 5.82 0 5 10 15 20 25 30 35 40 45 Universe(Median) 0.56 0.99 94.15 0.06 19.65 4.88 Total Annualized StdDev, % Universe(75%) -0.78 0.92 93.02 -0.01 18.70 4.17 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Universe(95%) -5.11 0.85 86.33 -0.20 17.07 3.44 Cash FTSE Emerging NR USD City of Dover, Delaware General Employee Pension Plan 44

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard REIT Index I 1.08 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VGSNX % Bonds Morningstar Category Real Estate % Non-US Stocks Avg Mkt Cap $MM 8261.38 The investment seeks to provide a high level of income and moderate long-term capital % Pref Cat Med Mkt Cap $MM 9821.37 appreciation by tracking the performance of a benchmark index that measures the % Conv Net Assets $MM 33431.17 performance of publicly traded equity REITs. The fund employs an indexing investment % Other approach designed to track the performance of the MSCI US REIT Index. The index is Turnover Ratio 9.00 % Non-US Bonds composed of stocks of publicly traded equity real estate investment trusts (known as % Assets in Top 10 Holdings 41.64 REITs). The fund attempts to replicate the index by investing all, or substantially all, of Total Number of Holdings 134.00 its assets in the stocks that make up the index, holding each stock in approximately the Manager Name Gerard C. O'Reilly same proportion as its weighting in the index. Manager Tenure 17.39 98.92 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 1.08 14 % Canada 0.00 % US Stocks 98.92 % Latin America 0.00 % Bonds 0.00 12 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 10 % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 9 8 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 25 6 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 32 % Asia - Emerging 0.00 4 2 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 0.00 Avg Eff Duration NA 2 140 0 % Communication Services 0.00 Effective Maturity NA % Consumer Cyclical 0.00 Avg Credit Quality NA % Consumer Defensive 0.00 AAA NA 120 -2 % Healthcare 0.00 AA NA % Industrials 1.23 A NA -4 % Real Estate 98.77 BBB NA 100 3 Months YTD 1 Year 3 Years 5 Years % Technology 0.00 BB NA % 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 Ratio 80 % Utilities 0.00 NR/NA NA Vanguard REIT Index I MSCI US REIT NR USD 1 Turnover 60 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Simon Property Group Inc 9.60% Vanguard REIT Index I -2.96 3.19 5.76 12.35 6.37 Public Storage 4.49% 40 MSCI US REIT NR USD -3.28 2.30 4.52 11.09 4.45 HCP Inc 3.85% Universe(5%) 2.60 4.46 10.30 12.98 10.52 Equity Residential 3.71% Universe(25%) -2.33 3.04 5.35 11.90 6.71 Ventas Inc 3.71% 20 Universe(Median) -2.78 2.29 4.41 11.43 5.66 Prologis Inc 3.66% Health Care REIT, Inc. 3.51% Universe(75%) -3.11 1.48 3.68 10.54 4.52 AvalonBay Communities Inc 3.22% Universe(95%) -3.63 0.18 2.57 8.77 2.78 0 0 Boston Properties Inc 3.14% Vornado Realty Trust 2.76% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 45

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard REIT Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -30 Up/Down Market Capture Ratio Oct-10 - Sep-13 -40 160 -50 140 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 120 Up Mkt Capture Ratio, % Vanguard REIT Index I MSCI US REIT NR USD 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 Vanguard REIT Index I 35.65 30.93 12.05 35.15 -16.38 -36.95 29.76 28.56 8.70 17.65 MSCI US REIT NR USD NA NA NA 34.18 -17.84 -39.05 26.27 26.97 7.48 16.47 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 3 1.0 20 12 0 0.9 18 0 20 40 60 80 100 120 140 160 10 Down Mkt Capture Ratio, % 2 0.8 16 Excess Annualized StdDev, % Morningstar Real Estate Universe Vanguard REIT Index I Total Annualized StdDev, % 0.7 14 8 MSCI US REIT NR USD 1 0.6 12 Sharpe Ratio Alpha, % 0.5 10 6 Return vs. Risk 0 0.4 8 4 Oct-10 - Sep-13 0.3 6 18 -1 0.2 4 2 16 0.1 2 14 Total Annualized Return, % -2 0.0 0 0 12 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 10 Vanguard REIT Index I MSCI US REIT 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 Vanguard REIT Index I 1.15 1.00 99.98 0.78 16.55 0.21 4 MSCI US REIT NR USD 0.00 1.00 100.00 0.71 16.57 0.00 2 Universe(5%) 2.68 1.03 99.67 0.92 18.72 11.30 0 Universe(25%) 0.91 1.01 99.44 0.76 16.91 2.45 0 5 10 15 20 25 Universe(Median) 0.44 0.98 99.02 0.73 16.47 1.70 Total Annualized StdDev, % Universe(75%) -0.03 0.96 98.04 0.70 16.16 1.28 Morningstar Real Estate Universe Vanguard REIT Index I Universe(95%) -1.88 0.78 78.68 0.55 14.52 0.97 Cash MSCI US REIT NR USD City of Dover, Delaware General Employee Pension Plan 46

Quarterly Investment Monitor Data as of 09/30/2013 Glossary Alpha (3 Yr) % Assets in Top 10 Holdings Alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as 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 risk. Specifically, the higher the percentage, the more concentrated the fund is in a few companies or issues, and the more the fund is negative 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 Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while the market price of its stock by the company’s per-share book value. Stocks with negative book values are excluded from this calculation. shorter maturities and higher coupons shorten duration. The relationship between funds with different durations is straightforward: A In 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 fund with a duration of 10 years is twice as volatile as a fund with a five-year duration. Morningstar prints an average effective indicates that the stock is a bargain. duration 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 consideration mortgage prepayments, puts, calls, adjustable coupons, and other features of individual bonds and is thus a more holding by the percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund’s final accurate measure of interest-rate sensitivity. Longer-maturity funds are generally considered more interest-rate sensitive than their P/E. 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 A measure of a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. Morningstar calculates beta by 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 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 will have an R-squared very close to 100. Conversely, a low R-squared indicates that very few of the fund’s movements can be explained the fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other by movements in its benchmark index. An R-squared measure of 35, for example, means that only 35% of the fund’s movements can be factors remain constant. Conversely, a beta of 0.85 indicates that the fund’s excess return is expected to perform 15% worse than explained by movements in the benchmark index. 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 Commonly called the Star Rating, is a measure of a fund's risk-adjusted return, relative to funds in its category. Funds are rated and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the portfolio’s historical risk-adjusted from one to five stars, with the best performers receiving five stars and the worst performers receiving a single star. performance. It can be used to compare two portfolios directly on how much excess return each portfolio achieved for a certain level of risk. 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 Standard Deviation on downward variation. The greater the variation, the larger the penalty. Funds are ranked within their categories and stars are assigned as follows: Top 10% five stars; Next 22.5% four stars; Middle 35% three stars; Next 22.5% two stars; Bottom 10% one Standard deviation is the statistical measurement of dispersion about an average, which depicts how widely a stock or portfolio’s returns star. 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 most likely for a given investment. When a stock or portfolio has a high standard deviation, the predicted range of performance is wide, Audited Expense Ratio implying greater volatility. The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all Total Number of Holdings other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV . Sales charges are not included in the expense ratio. The total number of different holdings of a fund. This figure is meant to be a measure of portfolio risk. Specifically, the lower the figure, the more concentrated the fund is in a few companies or issues, and the more the fund is susceptible to the market fluctuations in these few Geometric Average Market Capitalization holdings. This figure also provides a context for the importance of % assets in top 10 holdings. The figure is calculated from the most recent available fund 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 owns. It's calculated by raising the market capitalization of each stock to a power equal to that stock's stake in the Total Return portfolio. The resulting numbers are multiplied together to produce the geometric mean of the market caps of the stocks in the portfolio, which is reported as average market capitalization. Expressed in percentage terms, Morningstar’s calculation of total return is determined each month by taking the change in monthly net This number is different from the fund's median market cap--the capitalization of the median stock in its portfolio. The geometric asset value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAV. Reinvestments are mean better identifies the portfolio's "center of gravity." That is, it provides more accurate insight into how market trends (as defined made using the actual reinvestment NAV, and daily payoffs are reinvested monthly. 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 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, maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily agility, and popularity. They help determine whether a small company fund, for example, can remain in its investment-objective suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage category if its asset base reaches an ungainly size. of the portfolio’s holdings that have changed over the past year. 12-Month Yield City of Dover, Delaware General Employee Pension Plan 47 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

Quarterly Investment Monitor Data as of 09/30/2013 Disclaimer This Milliman work product was prepared solely for the internal business use of City of Dover, Delaware General Employee Pension Plan. 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 General Employee Pension Plan 48

History - Approval of Routine Applications for Early and Regular Retirement An Excerpt from the Minutes of the Civilian Pension Board Meeting of August 23, 2005: Proposed Ordinance Amendment - Chapter 2 - Administration, Article IV - Officers and Employees, Division 7 - General Employee Pension Plan, Subdivision II, Board of Trustees, Section 2-368 - Powers - Approval and Definition of Routine Applications for Early or Regular Retirement - Designation of Fiscal Agent; Authorization During previous meetings, members have questioned the requirement to bring routine pension applications for early or regular retirement be for the Board for action. The City Solicitor has provided a legal opinion that stated that the Board could designate the City Clerk or the Director of Human Resources to approve routine applications complying with the provisions of the Code and that this could be accomplished by a simple motion passed by the Board designating the person or office to act as designee of the Board in this regard. Mr. Hogan moved to delay action, at the May 24, 2005 meeting, to allow Human Resources time to provide a definition for routine pension applications and a description of a proposed process for the approval of such applications. Based on the Board’s direction, it is recommended that the Human Resources Director and the Finance Director review and approve all routine pension applications, in writing. Routine applications will be defined as retirements under Section 2-236 Normal Retirement, Section 2-327 Early Retirement and Section 2-328, Later Retirement. If any questions or concerns are presented, a Pension Board meeting will be held for the entire board to review and consider for approval. Staff recommended that Human Resources prepare the necessary paperwork and will also report on January 2 and July 1 of each year to the Civilian Pension Board members all routine pensions reviewed and approved for the prior six months. This reporting will occur during a regularly scheduled meeting. Mr. Hogan moved that the Civilian Pension Board assign the Human Resources Director and the Finance Director to review and approve all pension applications, in writing, that are considered routine in nature, and that each employee be informed that if they disagree with any assignments made by the Human Resources Director and the Finance Director they have a right to appeal directly to the Board; and that a quarterly report be prepared and presented to the Board during their regularly scheduled meetings. This motion was seconded by Mr. Lucas and unanimously carried. An Excerpt from the Minutes of the Civilian Pension Board Meeting of May 24, 2005: Receipt of Legal Opinion – Designation of Fiscal Agent; Authorization to Approve Routine Applications for Early or Regular Retirement During previous meetings, members have questioned the requirement to bring routine pension applications for early or regular retirement before the Board for action. At the request of the Human Resources Department, City Solicitor Rodriguez provided a legal opinion (Attachment #1). In

accordance with Section 2-208, Subsection 6, of the Dover Code, Mr. Rodriguez indicated that the Board could designate the City Clerk or the Director of Human Resources to approve routine applications complying with the provisions of the Code and that this could be accomplished by a simple motion passed by the Board designating the person or office to act as designee of the Board in this regard. Members relayed concern with the definition of routine pension applications and designating only one individual or department. To provide for a “checks and balance”, Mr. Lucas suggested the possibility of having applications reviewed by the City Manager, City Clerk, and Finance Director and that if anyone of those have a question regarding an application, it could be submitted to the Board for their review and approval. Mrs. Green suggested that if the Board chooses to relinquish this responsibility, for informational purposes, the Human Resources Department could provide either quarterly or semi-annual reports of retirement applications to Board members. Responding to Mr. Ruane, Mrs. Mitchell explained that the City’s auditors conduct random calculation tests of the retirement applications. Mrs. Hawkins advised members that the current process provides for the Payroll Department to conduct a final check of retirement applications submitted by the Human Resources Department for accuracy. Mr. Hogan moved to delay action until the next meeting to allow for the Human Resources Department to provide a definition for routine pension applications and a description of a proposed process for the approval of such applications, to include a review process by the City Manager, City Clerk, and Finance Director, seconded by Mr. Lucas and unanimously carried. S:\AGENDAS-MINUTES-PACKETS\Misc-Packets\2013\CIVILIAN PENSION BOARD\11-14-2013\History - Approval of Routine Applications for Retirement.wpd