Anexo

CIVILIAN PENSION BOARD AGENDA July 20, 2011 - 3:00 P.M.- Council Chambers - City Hall - City of Dover AGENDA ADDITIONS/DELETIONS 1. Adoption of Minutes - Civilian Pension Board Meeting of February 9, 2011 2. Organizational Issues - Election of Chair 3. Adjournment CIVILIAN AND POLICE PENSION BOARDS AGENDA Immediately Following the Adjournment of the Civilian Pension Board Meeting AGENDA ADDITIONS/DELETIONS 1. Adoption of Minutes - Civilian and Police Pension Boards Meeting of February 9, 2011 2. Adjournment JOINT CIVILIAN AND POLICE PENSION BOARDS AND OTHER POST EMPLOYMENT BENEFITS (OPEB) BOARD AGENDA Immediately Following the Adjournment of the Civilian and Police Pension Boards Meeting AGENDA ADDITIONS/DELETIONS 1. Investment Management Proposal 2. Adjournment TO ENSURE THAT THERE WILL BE A QUORUM, PLEASE RSVP BY CONTACTING THE CITY CLERK'S OFFICE BY EMAIL AT CITYCLERK@DOVER.DE.US OR CALLING 736-7008 AS SOON AS POSSIBLE /jjs 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.

SY VA So ey PEIRCE ParK GROUP INVESTMENT MANAGEMENT CONSULTANTS City of Dover 300 South High Street June 9, 2011 West Chester, PA 19382 Ph: (610) 719-0300 Fax: (610) 719-8345 www.Peircepark.com

History of Investment Consulting 1970’s and 1980's 1990’s ° Usually Part of Brokerage | * Independent Firms Firm Arrive * Performance Measurement | * Manager Searches ¢ Project Work * Some Policy and Portfolio Structure ¢ Limited Number of Servic Providers ¢ Regulatory Environment Changes (ERISA) 1970 1990 2000 2000's ° Primarily Independents ¢ Holistic — Forward Looking ° Funded Status * Future Contributions ¢ Impact on Budget and Financial Statements ¢ Regulatory Compliance 2010 2010’s ¢ Increase Number of Managers/Funds in Portfolio * Board/Trustees ° Focus on Policy ° Recognizing Difficulty Implement- ing Recommendations ¢ What is Best Use of Time * Consultants * Increase in Research Staff * Portfolio Construction ° Manager Selection ° Rebalancing ° Increased Responsibility 2020

Why Now? What is Peirce Park Doing? ¢ Approached by 4 Clients to do Manager Selections ° Timeliness ° Expertise ° Lost Opportunities ¢ PPG Evaluated ° Legal ¢ Administration ° Insurance ° Staffing ° Regulatory PEIRCE PARK GROUP INVESTMENT MANAGEMENT CONSULTANTS

PPG Consulting Plus ° Select Managers ¢ Manager Changes ° Determine Allocation Among Managers ¢ Rebalance Peirce Park’s Consulting-Plus model portfolios as of April 30, 2011. Their returns are calculated using our mix of Funds’ historical performance rebalanced on a quarterly basis.

Cumulative Returns May-09 - Apr-11 2 2 p gs P ee) S | = 104 2 | & St | o 1 month YID 1 Year 2 Years @ Dover Employees Mi Dover Police [165M [165M(n0GTAA) Ml Dover Policy Index [Baatagige Sd ed : Excess Annualized Returns over Dover Policy Index a | a4 Excess Annualized Return, % 1 Year 2 Years

Consecutive Returms 2009 - 2010 Total Annualized Return, % 2010 2009 @ Dover Employees Mi Dover Police []65M []65M(noGTAA) Ml Dover Policy Index Excess Annualized Returns over Dover Policy Index a 5.6 cal Excess Annualized Return, % 2009

Capture Ratios Jan-09 - Apr-11 Batting Averages Jan-09 - Apr-11 110) 1.04 | 0. | | 08 0.75 S| & 0.6 g 5 a < 2 | op | 3 100+ 4 2 os Es | : Ss) Oo | B er] | 3 | = 0.4- Ss | fs) 0.34 95+ | 0.24 | | | 0.14 | | 901 T =: =e 1 0.04 T 90 95 100 105 110 0.0 0.2 Down Mkt Capture Ratio, % E Dover Employees =P Dover Police 65M 65M (no GTAA) = 2 0.3 T T T 0.4 0.5 0.6 0.7 Down Mkt Batting Average Dover Policy Index 0.8 0.9 1.0

City of Dover Police Pension Plan Provisional Performance Summary June 7, 2011 ASSET TARGET ALLOCATION ALLOCATION ‘OTAL FUND - (Gross) (0.8) 33 11,087,976 100.0% 100.0% Policy Index (0.4) 3.4 DOMESTIC EQUITIES anguard Value Index : 2,629,329 TOTAL FUND QTD RETURN YITDRETURN TOTAL ASSETS IMSCI US Prime Market Value anguard PrimeCap Core \ 859,371 IMSCI US Prime Market 750 anguard Morgan Growth Adm. . 684,574 Russell 3000 Growth erican Funds Growth Fund (R5) . 475,342 Russell 1000 Growth IDFA U.S. Targeted Value E 757,954 Russell 2500 Value Royce Value Plus . 335,839 Russell 2000 Growth TOTAL DOMESTIC EQUITIES 5,742,408 INTERNATIONAL erican Funds EuroPacific Growth (R5) A 821,837 IMSCI EAFE (Net) IDFA International Value 0 665,835 IMSCI EAFE VALUE (Net) TOTAL INTERNATIONAL 1,487,672 FIXED INCOME anguard Intermediate Bond Index : : 1,359,854 Barclays 5-10 YR US Govt/Credit anguard Short Term Bond Index H i 2,463,915 Barclays 1-5 YR US Govt/Credit TOTAL FIXED INCOME 3,823,769 CASH & EQUIVALEN Performance and asset values updated through June 7, 2011 “ur a Pract Park Grove

City of Dover Employees Pension Plan Provisional Performance Summary June 7, 2011 TOTAL FUND IMSCI US Prime Market Value Vanguard PrimeCap Core IMSCI US Prime Market 750 (Vanguard Morgan Growth Adm. Russell 3000 Growth American Funds Growth Fund (R5) Russell 1000 Growth DFA U.S. Targeted Value Russell 2500 Value QTD RETURN YTD RETURN ASSET TARGET ALLOCATION 21,664,852 100.0% 100.0% TOTAL ASSETS 4,761,185 1,860,642 1,240,340 819,804 1,413,074 628,523 TOTAL DOMESTIC EQUITIES INTERNATIONAL American Funds EuroPacific Growth (R5) IMSCI EAFE (Net) DFA International Value IMSCI EAFE VALUE (Net) 10,723,568 1,503,657 1,246,985 TOTAL INTERNATIONAL FIXED INCOME (Vanguard Intermediate Bond Index Barclays 5-10 YR US Govt/Credit /Vanguard Short Term Bond Index Barclays 1-5 YR US Govt/Credit 2,750,643 2,598,696 4,787,003 TOTAL FIXED INCOME Money Market Performance and asset values updated through June 7, 2011 7,385,699 804,942

City of Dover OPEB Trust Provisional Performance Summaty June 7, 2011 TOTAL ASSET TARGET JN 14AL PUIND QTD RETURN YTD RETURN A ALI A ALI A TOTAL FUND TD RETURN YTD RETURN SSETS OCATION OCATION TOTAL FUND - (Gross) (0.8) 3.6 6,838,529 100.0% 100.0% Policy Index (0.6) 3.5 DOMESTIC EQUITIES anguard Value Index : ; 1,267,785 IMSCI US Prime Market Value (American Funds Fundamental Investors i ‘i 712,795 S&P 500 Target Small Capitalization Value . : 586,954 Ridgeworth Small Cap Value ; . 583,951 Russell 2000 Value TOTAL DOMESTIC EQUITIES 3,151,486 GLOBAL American Funds New Perspective i F 1,127,765 Harding Loevner Global Equity : : 547,800 IMSCI World (Net) IMSCI ACWI (Net) FIXED INCOME ‘Vanguard Total Bond Index . . 1,027,084 PIMCO Total Return F . 983,944 Barclays Capital US Aggregate Bond CASH & EQUIVALENTS Wells Fargo Advantage Cash Investment 450 IML US 90-Day T-Bill Performance and asset values updated through June 7, 2011