Dokiman ki tache

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD AGENDA NOVEMBER 14, 2013 - 9:00 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 - OPEB Board Meeting of August 8, 2013 2. Quarterly Performance Review (Quarter Ending September 30, 2013) (Milliman, Inc.) (Staff Recommends Acceptance of the Report) 3. Adjournment by 9:50 a.m. TO ASSURE THAT THERE WILL BE A QUORUM, PLEASE RSVP BY CONTACTING THE CITY CLERK’S OFFICE BY EMAIL AT CITYCLERK@DOVER.DE.US OR BY CALLING 736-7008 AS SOON AS POSSIBLE. /js S:\AGENDAS-MINUTES-PACKETS\Misc-Agendas\OPEB\2013\11-14-2013 OPEB BOARD.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD The Other Post-Employment Benefits (OPEB) Board meeting was held on August 8, 2013 at 11:00 a.m with Chairwoman Mitchell presiding. Members present were Mr. Hare, Mr. Koenig, and Mrs. Hawkins. Mrs. Williams was absent. AGENDA ADDITIONS/DELETIONS Mr. Hare moved for approval of the agenda as presented, seconded by Mrs. Hawkins and unanimously carried. Adoption of Minutes - OPEB Board Meeting of February 14, 2013 Mr. Hare moved for adoption of the minutes of the OPEB Board meeting of February 14, 2013, seconded by Mr. Koenig and unanimously carried. Organizational Issues - Election of Chair Mrs. Mitchell opened the floor for nominations for Chair of the OPEB Board. Mr. Hare moved to nominate Mrs. Mitchell to serve as Chairwoman, seconded by Mr. Koenig. By unanimous consent, nominations were closed. The motion to elect Mrs. Mitchell to serve as Chairwoman of the OPEB 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 City of Dover OPEB Quarterly Investment Monitor Summary Report for the Quarter Ending June 30, 2013. Mr. Marzinsky explained that the international bond and international emerging markets had declined during the quarter; however, U.S equities did well. He noted that, as a result, the plan’s performance decreased slightly over the quarter, with a -2.27% net return; however, returns were very close to the plan index and managers were performing as anticipated. The allocation of the plan was in line with the target allocation discussed last year. No major issues or changes were recommended in regard to investment managers. Mr. Marzinsky noted that investment management expenses were lower than last year since more plan funds had been allocated to indexed-based investment managers. Investment Manager Recommendations Referring to Item #2 of the Investment Committee Meeting Notes - 8/8/2013 Memo included with the City of Dover OPEB Quarterly Investment Monitor Summary Report for the Quarter Ending June 30, 2013, Mr. Marzinsky reviewed the Optimization Input Review. He noted that Milliman, Inc. had adjusted expectations for the Expected Annual Return for the OPEB Fund and recommended that the plan’s allocation be adjusted due to the volatility of long-term bonds and emerging markets, as well as the potential for rising interest rates.

OPEB MEETING OF AUGUST 8, 2013 PAGE 2 Referring to the Portfolio Options chart, Mr. Marzinsky reviewed the recommended adjustments to the allocation of plan assets as 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 OPEB Board. He suggested that long-term bond and emerging market investments be reduced. Within the fixed income asset category, some of the long-term bonds would be reallocated into shorter-term and inflation-protected bonds. In addition, he recommended introducing high-yield bonds as another asset category, noting that as interest rates rise, high-yield, shorter duration bonds may not be impacted as much as longer duration bonds and would not have as much volatility. He suggested staying within the overall 60% equity and 40% fixed income allocation and reallocating some of the fixed income and equity investments within those categories. The Customized Alternative Portfolio was suggested as a means of staying in line with the expected return of approximately 6.6% and volatility of approximately 12%. Mr. Hare questioned if President Obama’s proposed elimination of Fannie Mae mortgages would affect the plan’s assets. Mr. Marzinsky stated that the OPEB Fund did not have many mortgage-based securities, which are potentially volatile, and instead favored corporate and treasury bonds. Referring to Item # 3 of the Investment Committee Meeting Notes - 8/8/2013 Memo, Mr. Marzinsky stated that if the high-yield asset category were added to the portfolio, a manager must be selected for the plan. He explained that fund managers who focus on bonds with a B average credit quality with an average maturity of three (3) years, most of which were invested in corporate bonds, were researched. Of the four (4) plans reviewed, the Ivy High Income I plan had the best return and rank, as well as a lower level of risk, and was recommended as the manager. In response to Mr. Koenig regarding legal changes that might prevent the actuary from using 7% as an assumed return on investments in the future, Mrs. Mitchell stated that standards established by the Government Accounting Standards Board (GASB) for pension had changed; however, they had not yet changed for OPEB, although this was expected. In response to Mrs. Hawkins regarding the OPEB Fund’s rate of return, Mrs. Mitchell stated that the City was assuming a return of 7.5%. She indicated that the actuary, Mr. Scott Porter, Milliman, Inc., would likely recommend changes when the next actuarial study was completed. Responding to Mr. Koenig, Mr. Marzinsky stated that the column labeled “BMV” in the Quarterly Return Summary reflected the “Beginning Market Value” and indicated the actual dollars in the plan. He explained that Milliman, Inc.’s actuarial team determines the valuation of the plan using the interest rate assumptions and develops an amortization schedule for periodic contributions to the plan. In response to Mr. Hare regarding the value of the plan in August 2012, Mr. Marzinsky expressed his belief that returns were positive through 2012 and that some contributions were made near the end of that year; therefore, it was his understanding that the value of the plan had increased since 2012, although he did not have this information available. He explained that the Investment Option Return Summary on Page 12 of the Quarterly Investment Monitor showed that the plan’s return as

OPEB MEETING OF AUGUST 8, 2013 PAGE 3 of June 30, 2012 was 7.15% gross and 6.77% net, which was very close to the target return of 7.0%. Mr. Marzinsky stated that the plan’s return was not guaranteed due to volatility in the market in regard to interest rates and stocks; however, Milliman was attempting to target a return of approximately 6.5% to 7% in order to come close to the funded status valuation interest rate. Mrs. Mitchell noted that the Investment Option Return Summary provided targets for each of the individual funds; therefore, it could be seen which funds were missing the targets and which were attaining them. Mr. Marzinsky stated that The Investment Policy Review - Active Management on Page 10 highlighted areas where plans were performing below expectations; however, he indicated that there were no major issues and that underperformance with active managers was expected from time to time. Referring to the Quarterly Return Summary in the Investment Committee Meeting Notes - 8/8/2013 Memo, Mr. Koenig questioned if the fees listed in the amount of $1,250 included cumulative fees. Responding, Mr. Marzinsky stated that these were quarterly custodial and trustee fees imposed by Wells Fargo. He noted that these fees were factored into the gross return of the plan and the net return was lower because the weighted average of the expense of the investment managers was taken from the gross return. Responding to Mrs. Hawkins, Mr. Marzinsky stated that the $1,250 was a quarterly fee. In response to Mr. Koenig regarding where Milliman’s fees were reflected, Mrs. Mitchell stated that she was unsure if Milliman’s fees were reflected in the “Fees” section of the report or if they were charged against the investment expenses. Mr. Marzinsky stated that Milliman reviews the Wells Fargo statements each quarter and had not seen deductions from the OPEB Trust for Milliman’s fees. Mrs. Mitchell stated that the report from Milliman, Inc. reflected amounts in the Trust account, rather than the City’s cash account. She explained that there was a balance in the City’s cash account that had not been transferred yet and that fees were being charged to that account and were not being picked up by Mr. Marzinsky. Mr. Marzinsky stated that Milliman’s fee was included in the transactions in the gross return. Mr. Koenig moved to approve the plan asset allocations, as recommended by Milliman, Inc., and reflected in Amendment II to the Investment Policy Statement for the City of Dover OPEB Board. The motion was seconded by Mr. Hare and unanimously carried. By unanimous consent, Amendment II of the Investment Policy Statement for the City of Dover OPEB Board was adopted as submitted.

OPEB MEETING OF AUGUST 8, 2013 PAGE 4 Mr. Koenig moved to approve the introduction of high-yield bonds into the portfolio and to select Ivy High Income I as the fund manager, seconded by Mr. Hare and unanimously carried. Mrs. Mitchell recommended that a statement be added to the OPEB Board’s Investment Policy to require that the Policy be reviewed with the investment manager at least annually, as is done with the City’s Investment Policy and that this review be included as an agenda item for the Board’s August meeting. This would prevent the Board from overlooking the need to review the policy regularly or having to make multiple changes in one (1) year. Mr. Koenig moved to amend the City of Dover OPEB Fund Investment Policy Statement to include a statement that the policy would 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. Hare and carried unanimously. [City Clerk’s Office Note: Subsequent to the meeting, the City of Dover OPEB Fund Investment Policy Statement was revised to include this statement as well as Amendment II (Attachment #1).] Scheduling of Future Meeting Dates Mr. Koenig moved to tentatively schedule meetings for the OPEB Board on November 14, 2013; February 13, 2014; May 8, 2014; and August 14, 2014 at 9:00 a.m. The motion was seconded by Mr. Hare and unanimously carried. Mr. Marzinsky stated a possible conflict on May 8, 2014 and that he could attend through conference call or video conferencing. He noted that he had web presentation technologies available that the City may be able to access. Mrs. Hawkins moved for adjournment, seconded by Mr. Koenig and unanimously carried. Meeting adjourned at 11:29 a.m. Donna S. Mitchell Chairwoman DM/JS/dd/tm S:\AGENDAS-MINUTES-PACKETS\Misc-Minutes\OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD\2013\08-08-2013 OPEB.wpd Attachment Attachment #1 - City of Dover OPEB Fund Investment Policy Statement, as amended

ATTACHMENT #1 OPEB Board Meeting of 08/08/2013 The City of Dover OPEB Fund Investment Policy Statement August 8, 2013

Table of Contents INTRODUCTION ....................................................................................................................................................... 3 PURPOSE OF THE STATEMENT ......................................................................................................................... 3 PLAN DESCRIPTION ............................................................................................................................................. 3 PORTFOLIO MANAGEMENT PRECEPTS .......................................................................................................... 4 STANDARD OF CARE ........................................................................................................................................... 4 RESPONSIBILITIES OF THE BOARD AND STAFF ........................................................................................... 5 RESPONSIBILITIES OF ANY INVESTMENT MANAGER(S) ........................................................................... 6 RESPONSIBILITIES OF THE FUND CUSTODIAN(S) ........................................................................................7 RESPONSIBILITIES OF THE INVESTMENT CONSULTANT ...........................................................................7 INVESTMENT OBJECTIVES .................................................................................................................................. 8 INVESTMENT POLICY ............................................................................................................................................ 9 ASSET ALLOCATION ........................................................................................................................................... 9 ALLOCATION MONITORING/REBALANCING .............................................................................................. 10 LIQUIDITY ............................................................................................................................................................ 10 DIVERSIFICATION .............................................................................................................................................. 10 PROXY VOTING .................................................................................................................................................. 11 INVESTMENT GUIDELINES ................................................................................................................................ 11 GENERAL GUIDELINES ..................................................................................................................................... 11 MUTUAL AND OTHER COMINGLED FUNDS…............................................................................. 13 DOMESTIC EQUITY INVESTMENT GUIDELINES ......................................................................................... 13 Specific Guidelines, Domestic Equity ................................................................................................................ 13 INTERNATIONAL/GLOBAL EQUITY INVESTMENT GUIDELINES... ............................................... 14 Specific Guidelines, International/Global Equity ............................................................................................... 14 DOMESTIC FIXED INCOME INVESTMENT GUIDELINES............................................................................ 15 Specific Guidelines, Domestic Fixed Income ..................................................................................................... 15 Specific Guidelines, Cash ................................................................................................................................. 16 REVIEW PROCEDURES ........................................................................................................................................ 17 SIGNATURES ........................................................................................................................................................... 18 AMENDMENT I........................................................................................................................................................ 19 AMENDMENT I1...................................................................................................................................................... 21 2

INTRODUCTION Purpose of the Statement Based upon, and in keeping with requirements governing the conduct of employees and fiduciaries serving as members of the Board of Trustees of the City of Dover OPEB Fund (“Board”), this Investment Policy Statement ("Statement") presents objectives, policies, guidelines, monitoring and review procedures relating to all assets of the City of Dover OPEB Fund (collectively, the “Plan”). The Plan’s investment program shall be operated in conformance with federal, state, and all other legal requirements. The Statement's purpose is to: 1) Present appropriate goals and objectives relating to the assets of the Plan available for investment (“Fund”). 2) Recognize and/or specify liquidity and diversification 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 Manager classifications, and/or Investment Manager styles to which any Board-appointed Investment Manager(s) (an “Investment Manager”) shall adhere when determining investment strategies, making periodic investment decisions, and/or undertaking specific investment transactions relating to the portion of the Fund managed by that Investment Manager (“Account”). 4) Establish standards and procedures for monitoring, measuring, reviewing, and evaluating any Investment Manager(s) and/or Board-appointed Fund custodian’s (“Custodian”) investment performance and/or safekeeping of assets and Fund expenses in accordance with investment policies, goals, objectives, guidelines, and/or constraints. 5) Foster understanding and effective communication 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 Fund and the Plan’s participants and/or beneficiaries. Plan Description The City of Dover OPEB Plan is a post retirement employee benefit program established for the purpose of funding retiree health care and life insurance as provided for in Article VI of Chapter 2 of the City Ordinances. The OPEB fund shall constitute a trust fund that shall be separate and distinct from all other funds, including the pension funds established by Article IV of Chapter 2 (General Employee Pension Plan) and Article III of Chapter 62 (Police Pension Plan) of the City Ordinances (City Code). 3

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. Standard of Care 1. Prudence The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. The “prudent person” standard states that, “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” 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 socio-political events and trends are factors that affect meeting those obligations. Accordingly, these guidelines are, as a part of this Statement, intended to present broad and balanced considerations to guide incumbent and successor Boards and Staffs, and all other parties concerned, seeking appropriate allocation, investment, safekeeping, monitoring and evaluation of the Fund. 2. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose to the full Board and Board counsel, any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the Plan. 3. Delegation of Authority Authority to manage the Accounts comprising the Fund is granted to the Investment Manager(s). Responsibility for the operation of the investment program is hereby delegated to the Investment Manager(s), who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this Statement. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures 4

established by the Investment Manager(s). The Investment Manager(s) shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Responsibilities of the Board and Staff The Board is charged with overall responsibility for investment of Fund assets. To assist the Board in this function, the Board is authorized and permitted to appoint Investment Manager(s), to manage (including the power to acquire and dispose of) the Fund. Any appointed Investment Manager(s) must agree to act in accordance with all applicable state and federal laws. The Board must also develop policies and guidelines regarding Fund investments. Policies and guidelines are inclusive of, but not restricted to: 1) Establishment of Investment Objectives, Investment Policy, Investment Guidelines, and Review procedures, as set forth herein. 2) Establishment of standards for measuring, monitoring, evaluating and comparing investment performance of the Fund to assure that investment returns are reviewed on a regular basis. 3) Establishment of authorization, reporting, control, review and general governance procedures to assure that Fund 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 appropriate Board signatories, and delivered forthwith to any Investment Manager(s) and/or Custodian(s) affected by such changes. 4) Establishment of, through contractual relationships with professional organizations, or by alternative means satisfactory to the Board, an OPEB Fund management structure which will assure appropriate investment management, custody, and compliance procedures to seek to meet objectives in conformity with the Board’s stated investment policies and guidelines. 5) The City of Dover OPEB Fund 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. 6) Establishment of standards for review of fees of the Investment Managers and Custodians. 7) The Board shall examine this Statement from time to time and make appropriate revisions. 8) The Board may consult with legal counsel as necessary. 5

RESPONSIBILITIES OF ANY INVESTMENT MANAGER(s) The management of any Account consisting of Fund assets and the responsibilities for investment decisions for that Account are delegated to the Investment Manager(s) appointed by the Board to manage that Account. An Investment Manager(s) shall exercise complete discretion with respect to the Account (or Accounts) within the limits established by this Statement. Accordingly, the Investment Manager shall comply with all applicable laws as they now apply, or as they may apply in the future. Applicable terms, conditions, limitations and restrictions notwithstanding, any Investment Manager(s) 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 Fund's purpose and contemporary operations, and shall diversify the investments of all Accounts so as to minimize the risk of substantial loss. When contemplating any investment, investment strategy or investment course of action, and/or any securities transaction, an Investment Manager managing an Account shall consider all relevant factual and circumstantial information and the impact of such information upon a particular investment, strategy, or program, and upon the Account. Further, respecting investment strategies, and/or courses of action for the Fund, any Investment Manager shall also consider: 1) Potential losses and gains; and 2) The composition of the Account with regard to: a) Diversification; b) Liquidity and current return relative to the Plan’s cash flow requirements; and 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, and investment, events and trends are factors that affect meeting those obligations. Accordingly, these guidelines are, as a part of this Statement, intended to present broad and balanced considerations to guide incumbent and successor Boards and Staffs, and all other parties concerned, seeking appropriate allocation, investment, safekeeping, monitoring and evaluation of the Fund. All investment performance data submitted to the Board or to any designee thereof directly or indirectly by or on behalf of any Investment Manager(s) shall, as applicable, be submitted in conformity with the Performance Presentation Standards and/or Global Investment Performance Standards promulgated by the CFA Institute. The delegation of discretion for the management of the Fund and responsibilities for investment decisions shall be limited by the provisions of this Statement. When appointing Investment Manager(s), the Board shall require the Investment Manager(s) to 6

covenant that it shall adhere to Delaware Fiduciary Standards, as well as any other Delaware and Federal laws as now apply or may apply in the future. Fiduciary insurance, and officer liability and omissions and errors insurance coverage, of any Investment Manager(s) must meet standards set by the Board from time to time. If, at any time, an Investment Manager(s) believes that this Statement inhibits its investment performance, it is the Investment Manager’s responsibility to communicate this view to the Board and the Investment Consultant. In addition, the Investment Manager will promptly notify the Board and Investment Consultant, in writing, regarding all material or significant changes, including but not limited to: 1) Material changes in investment strategy, portfolio structure, tactical approaches, and market value of managed assets; 2) Material changes in ownership, organizational structure, financial condition, and/or professional staff of the Investment Manager; and 3) All material legal, SEC, and other regulatory proceedings affecting the Investment Manager or its affiliates. RESPONSIBILITIES OF THE FUND CUSTODIAN(S) Any Custodian(s) 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, which shall include any custom recordkeeping, record retention, or reporting reasonably required by the Board or its representatives. Ready access to information by the Board and Staff shall be a prime requisite of recordkeeping and reporting services. Transaction records shall be maintained on a trade date basis. Asset pricing should be daily and reported not less often than monthly. Custodians and Investment Managers should use nationally accepted asset pricing services. Safety and continuity of operations shall be the primary objectives of any Custodian. Timely, accurate, and complete recordkeeping and reporting shall be the primary benchmarks for 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). All Fund assets shall be held in the name of the Plan or held for the express benefit of the Plan and segregated on the books and records of Custodian, without rights of set-off or other liens. Board or designated Investment Managers’ authority to direct all investment transactions shall be protected. RESPONSIBILITIES OF THE INVESTMENT CONSULTANT The Board may utilize the services of an investment consultant for the purpose of performance review, asset allocation studies, manager screening and selection and topical studies, or any other service deemed necessary and agreed upon by the Board and 7

Investment Consultant. The comments and recommendations of the consultant will be considered by the Board in conjunction with other available information for the purpose of making an informed and prudent decision. INVESTMENT OBJECTIVES Investment objectives are long-term in nature. Given the Board’s assumptions respecting current and projected Plan and capital market conditions, the Fund objectives are: 1) Fund fiduciaries shall discharge their responsibilities and assets shall be invested in a manner consistent with this Statement, and applicable law. Further: (1) all transactions undertaken on behalf of this Fund shall be solely in the interest of the Plan participants and their beneficiaries, and (2) with reference to applicable law, and (3) liquidity and current return consistent with rationally anticipated cash flow requirements of the Plan, shall be governing factors in all investment considerations. 2) Consideration shall be given to providing adequate and timely Fund cash flows to meet anticipated Plan benefit payments, with sufficient reserves to meet unanticipated benefit payments; adequate emphasis, consistent with the foregoing, shall be placed upon current investment return. The Board recognizes that short-term assets for current benefit payments are a substantially greater percentage than those of the pension fund. 3) Consideration shall also be given to, granting conformity with the objectives of 2., above, suitable long-term Fund investment intended to provide capital and income growth. The Board anticipates that such capital and income growth will be achieved during each economic and/or securities market cycle, generally three to five (3-5) years. 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, the Board sets forth the following investment objectives for comparative or benchmark measures of Fund investment return, and risk or volatility, delineated as follows: a) The Board desires to achieve a positive real (post-inflation) Fund rate of return during any multi-year period and over the life of the Fund. Based upon current and projected Plan and capital market conditions, the Board has set returns meeting or exceeding the Plan’s actuarial rate of return assumption at any time, annualized, as the multi-year return target. The Board’s target return for the Fund is an annualized 7.5% percent. b) Consistent with the target return in a. above, annualized Fund investment performance, for periods of five (5) years, is desired to meet or exceed the Plan's assumed actuarial rate of return and to meet or exceed the annualized investment performance of a Fund "policy index" comprised of a weighted average of relevant asset-class indices. 8

c) Consistent with b., above, the Fund’s investment return volatility, as measured by the standard deviation of Fund quarterly investment returns, is desired to not exceed the volatility of the Fund policy index during any five (5) year measurement period. 5) Investment performance objectives for 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 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, as more fully set forth herein. INVESTMENT POLICY Investment Policy delineates controls and the associated monitoring intended to enhance the likelihood of meeting Investment Objectives: ASSET ALLOCATION Asset class allocation, resulting in so-called asset mix, is intended to afford an appropriate approach toward Fund Investment Objectives while limiting investment risk by providing basic diversification. The percentages of asset classes delineated below provide a framework through which the Fund’s investments may be adjusted to meet economic and/or investment market conditions while remaining centered on the allocation target deemed appropriate to the Fund’s long-term Investment Objectives. Asset Class Minimum % Target % Maximum % Benchmark Domestic Equity 49 54 59 Russell 3000 International Equity 9 14 19 MSCI EAFE (net) Fixed Income 27 32 37 Barclays Intermediate Govt/Credit The above target allocation is for the investable assets only. The city will keep a cash reserve in a separate account that will pay benefits for each fiscal year. In the event an Investment Manager invests in more than one asset class, for example, a balanced manager or global equity manager, the manager’s allocation to each asset class will be attributed to that particular asset class. For example, if a global equity manager is allocated 10% of the total fund and invests 60% of their allocation in international equities, 60% of their allocations will be attributed to international equities and therefore, 6% of the total fund allocated to international equities, while the remaining 40% will be attributed to domestic equities and therefore 4% of the total fund allocated to domestic equities. 9

ALLOCATION MONITORING/REBALANCING The Board or its designee(s) shall review asset allocation quarterly to monitor Fund asset allocation targets. In the event that asset allocations fall moderately outside the ranges in the tables above, the appointed Custodian(s) and Investment Manager(s) may, in the Board’s discretion, be notified and instructed by the Board to adjust cash flows to return the Fund to appropriate asset allocation levels. Should an allowable range be breached substantially, the Investment Manager(s) involved may be required by the Board to adjust assets immediately, as determined by the Board in its discretion. The Board may consider a variety of factors in exercising its discretion, including but not limited to: 1) the short-term and long-term goals and needs of the Plan and its participants; 2) the recommendation of each of the Investment Manager(s) involved; 3) current market conditions, including liquidity and price, for selling the securities involved; 4) market forecasts or expectations going forward for short, medium and long-range periods; and 5) risks involved in holding the excess investments and the overall risk tolerances of the Plan. The Board may set asset allocation ranges for individual Investment Manager(s) different from ranges for the Fund. Liquidity Emphasis shall, per Investment Objective, 3, above, page 8, be placed on providing adequate and timely Fund cash flow to permit benefit payments from the Plan when due. The Board endeavors to meet the Fund’s multiple Investment Objectives through asset allocation and constructive Investment Guidelines. Nevertheless, any Investment Manager(s) appointed by the Board shall be responsible for seeking, no less frequently than annually, from the Board or its designee(s) current information respecting Fund cash flow requirements and for assisting in meeting said requirements. Diversification Fund investments must be diversified broadly to minimize the risk of substantial loss. The Board recognizes that significant diversification is accomplished through asset allocation and the selection of investment management organizations. Nevertheless, the Investment Guidelines which follow include certain specific constraints intended to optimize investment diversification. 10

Proxy Voting Matters of political and public interest as well as corporate governance have long been a part of Annual Meetings and proxy activity in the United States. The Board adheres to a policy of proxy voting intended to protect the long-term value of the equity securities represented in each vote, provided said vote, when exercised, would be solely in the interest of Plan participants, retirees and beneficiaries. The Board delegates proxy voting authority to any Investment Manager, but if the Board deems it necessary, can take back the authority at any time by notice to the Investment Manager in writing. INVESTMENT GUIDELINES Investment Guidelines describe for the guidance of Fund Investment Manager(s) and for the information of the Fund Custodian(s) a range of permissible investment activities and choices while also delineating, specifically or by broader proscription, those which are not permissible. Investment Guidelines for the Fund appear below. Each individual Investment Manager is expected to select equity investments in conformity with criteria normally applied in its decision making process and previously reviewed and approved by the Board. Different guidelines and benchmarks may be assigned to individual Investment Managers by written authority of the Board. 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 Investment Manager was retained to serve the Plan. 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 Investment Manager(s) by the Board, any Investment Manager is expected to undertake discretionary management of any Fund portfolio. Nevertheless, when responsible for any Fund investment portfolio, the Investment Manager(s) shall report immediately to the Board or its designees any shift between or decrease in market value of asset classes during any calendar quarter which equals or exceeds ten (10) percent of the market value of the assets assigned to the Investment Manager(s). For the purpose described herein, cash and money market or cash equivalent securities shall be considered an asset class. 1) Full discretion, consistent with the Investment Objectives, Investment Policies, and Investment Guidelines set forth in this Statement, is granted to each Investment Manager. 2) Each Investment Manager shall select investments in conformity with criteria normally applied in its decision making process and previously reviewed and approved by the Board. 3) Investment Manager(s) are expected to purchase readily marketable securities. 11

4) Any Investment Manager(s) serving as active manager may be assigned indices or other types of benchmarks deemed suitable for them and agreed upon with the Board; as a general expectation those Investment Managers should exceed their assigned benchmarks, post fees, on an annualized basis over periods of three (3) years or more. 5) Any security purchased in conformity with the standards for securities cited in 2. above, but no longer meeting a specific, per-security Investment Guideline standard, and/or by marginal effect causing portfolio non-compliance, may, in lieu of immediate sale, be reported to the Board with background information and an intended future course of action by any Investment Manager(s). The Board may, upon review and at its discretion, 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. The Board may consider a variety of factors in exercising its judgment, including but not limited to: a. the short-term and long-term goals and needs of the Plan and its participants; b. the recommendation of each of the Investment Manager(s) involved; c. current market conditions, including liquidity and price, for selling the securities involved; d. market forecasts or expectations going forward for short, medium and long- range periods; and e. risks involved in holding the excess investments and the overall risk tolerances of the Plan. For any individual Investment Manager(s), securities retained under such circumstances shall constitute no more than five (5) percent of the market value of securities (5 percent “basket clause”). The Board has determined that the following investments and investment practices are not suitable for the Fund and thus are prohibited: 1) Buying or (short) selling securities on margin, and/or the use of any other form of leverage, including the lending of securities, unless approved in writing in advance 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, International Equity, and Fixed Income Investment Guidelines, below.). 12

4) Investments may not include deep discount or zero coupon (excepting U.S. Treasury) securities, tax-exempt, derivative or synthetic securities, such as collateralized debt obligation (CDOs), credit default swaps (CDS), interest rate swaps and any total return swaps. Certain exceptions are delineated below (see Domestic Fixed Income Investment Guidelines, page 15-16.) MUTUAL AND OTHER COMMINGLED FUNDS The Fund (and any Account) may include, in whole or in part, an investment in a mutual fund or other commingled fund. The Board recognizes that there may be deviations between the objectives, intent or specific requirement of this Statement and the stated objectives, intent or content of any mutual fund or other commingled fund. However, every effort shall be made, to the extent practicable, prudent and appropriate, to select mutual or other commingled funds that have investment objectives and policies that are consistent with this Statement. DOMESTIC EQUITY INVESTMENT GUIDELINES The Board shall review the Fund at least quarterly to assure that the domestic equity limit of fifty nine (59) percent of Fund market value is not exceeded; as necessary, the Custodian(s) may, in the Board’s discretion, be instructed to redirect cash flows to the Investment Manager(s), or to accommodate Board-directed Investment Manager(s) asset allocation revisions, 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. Periodic dislocations in the equity and fixed income markets may present opportunities for the Investment Manager(s) to take certain securities positions within the domestic equity portion of the Fund’s portfolio that, in its opinion, benefit the Plan. Under those market conditions and at the discretion of the Investment Manager(s), the Investment Manager(s) may invest up to five (5) percent of their equity portfolio in fixed income securities rated investment grade by at least two of the following three rating agencies: Standard and Poors, Moody’s and Fitch. Investment Manager(s) shall conform to the Domestic Equity Investment Guidelines set forth above and below. Specific Guidelines, Domestic Equity 1) No Investment Manager shall invest initially on a market value basis more than five (5) percent of the equity portion of any portfolio in the equity securities of a single corporation or group of directly affiliated corporations nor maintain an investment of more than eight (8) percent similarly calculated. 13

2) No Investment Manager may make or maintain an investment equaling or exceeding ten (10) percent ownership of the outstanding equity securities of a single corporation, or group of directly affiliated corporations, without the written consent of the Board. 3) As an exception to the general prohibition against so-called alternative investment instruments, stock options may be utilized by an Investment Manager(s) managing domestic U.S. equity securities in “covered” or hedging postures but not in “naked” or speculative postures. 4) The total annualized investment return from all domestic equity investments of the Fund is expected to meet or exceed, post fees, the total annualized return of the Russell 3000 Stock Index for cumulative periods three (3) years or more. INTERNATIONAL/GLOBAL EQUITY INVESTMENT GUIDELINES The Board shall review the Fund at least quarterly to assure that the International Equity limit of nineteen (19) percent of Fund market value is not exceeded; at the discretion of the Board, the Custodian(s) may be instructed to redirect cash flows to the Investment Manager(s), or to accommodate Board-directed Investment Manager(s)’ asset allocation revisions, to restore the asset allocation currently approved by the Board. 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 international equities. Specific Guidelines, International/ Global Equity 1) Excepting mutual or commingled funds approved by the Board, investing in emerging market equity securities is permissible up to a maximum of twenty (20) percent of any International Equity Investment Manager’s (IEIM) international equity portfolio at market value. As applicable; proper global, regional, national, industry and individual security diversification must be maintained at all times. 2) No IEIM shall invest initially on a market value basis more than five (5) percent of the equity portion of any portfolio in the equity securities of a single corporation or group of directly affiliated corporations nor maintain an investment of more than eight (8) percent similarly calculated, without written consent of the Board. 3) No IEIM may make or maintain an investment equaling or exceeding ten (10) percent ownership of the outstanding equity securities of a single corporation, or group of directly affiliated corporations, without the written consent of the Board. 4) As an exception to the general prohibition against so-called alternative investment instruments, stock options may be utilized by IEIM (s) managing international equity securities in “covered” or hedging postures but not in “naked” or speculative postures. 5) Because an active currency hedging strategy may reduce risk of loss and/or enhance IEIM investment performance, hedging to protect against currency impact 14

upon a security position is permissible. 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. 6) The annualized total investment return from all International Equity investment(s) of the Fund is expected to exceed, after fees, the annualized total return of an appropriate benchmark, to be agreed upon by any IEIM and the Board, for annualized periods of three (3) years or more. In the absence of another selected benchmark, the Morgan Stanley C.I. “EAFE” Index shall serve as benchmark. 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 thirty seven (37) percent is not exceeded. At the discretion of the Board, the Custodian(s) may be instructed by the Board to redirect investment and/or contribution cash flows to the Investment Manager(s), or to accommodate immediate Board-ordered Investment Manager(s) portfolio structure revisions, to restore the asset allocation currently approved. The Investment Manager(s) shall conform to the Fixed Income Investment Guidelines set forth above and below. Specific Guidelines, Domestic Fixed Income 1) Suitable fixed income investments include, but are not limited to, U.S. Treasury and Agency securities, taxable municipal securities, marketable debt securities of U.S. corporations, U.S. certificates of deposit and banker’s 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. 2) Investment Managers are given latitude in security selection subject to the following restrictions: a) No issuer, other than the U.S. Government or other Federal agencies, may represent more than five (5) percent of the total market value of the fixed income portfolio managed by any Investment Manager(s). b) The following areas are individually restricted to no more than the below noted percentages of the fixed income portfolio managed by any Investment Manager(s). i) Mortgage Backed Securities – 30 percent ii) Zero Coupon Bonds (US Treasury only) – 20 percent iii) Baa or fourth investment grade bonds – 30 percent iv) Foreign fixed income securities, if rated A or above, including Canadian securities denominated in U.S. dollars (i.e., foreign “Yankee” and Canadian U.S. pay securities) – 20 percent v) Securities whose price movements are exacerbated by interest rate changes or principal prepayments, including but not limited to: range accrual notes, IO’s, PO’s – 20 percent 15

c) In no event may securities not in any Investment Manager’s benchmark exceed 30 percent of the Investment Manager’s fixed income portfolio. 3) 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 fixed income investments without prior written approval of the Board. 4) The average quality of fixed income securities purchased by any Investment Manager(s) shall equal or exceed A2, the third broad investment grade as determined by Moody's. 5) 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.” 6) The effective duration of fixed income securities, said average including any investments considered to be reserve or cash equivalent assets specific to any fixed income portfolio, shall be no more than 25 percent greater or less than the effective duration of the policy benchmark designated on page 12. 7) There shall be no limit upon investment in U.S. Treasury securities as a percentage of fixed income investments at cost or market value, except that any single coupon issue thereof may constitute no more than thirty (30) percent of any Investment Manager(s)’ fixed income investments at market value and any single Treasury zero coupon issue ten (10) percent at market value. Federal Agency securities are hereby limited to fifty (50) percent of fixed income investments at market value, twenty-five (25) percent per agency, and to ten (10) percent, at market value, per any single Federal Agency issue. 8) The total annualized investment return from all fixed income investments of the Fund is expected to meet or exceed, post fees, the total annualized return of the benchmark designated on page 12, for cumulative three (3) year periods. Specific Guidelines, Cash 1) Investment Objective Short-term investments are intended to be conservative and meet any necessary disbursements of the Plan and to accumulate funds for future investment. The short- term investments will be expected to provide returns, post fees, at least equal to the 90 Day U.S. Treasury Bill Index. 2) Permitted Activity Short-term investments are a permitted class of assets provided they fall within one or more of the following categories: a) U.S. Government securities (backed by the faith and credit of the U.S. Government) and U.S. Agency obligations; b) certificates of deposit, maturing within 12 months, of any domestic bank meeting the capital standards mandated by the FDIC Improvements Act of 1991, provided that such certificates of deposit from one institution shall 16

not represent more than 5% of the assets of the short-term investment account; c) commercial paper, maturing within 9 months, of any domestic issuer, provided that such commercial paper shall be rated not less than A-1 by Standard & Poor or Prime 1 by Moodys; d) repurchase agreements secured by U.S. Government or U.S. Agency obligations; e) high grade bankers acceptance; f) commingled accounts offered by banks or mutual funds that are designed for cash management strategies; and g) corporate bonds maturing within 12 months, provided that they are rated not less than A by S&P or A2 by Moody’s. 3) Prohibited Activity Unless specifically approved otherwise by the Board in writing, no short-term investment account shall engage or invest in any of the following and no commingled fund in which the Plan invests as a short-term vehicle shall in the aggregate substantially invest or engage in the following: a) options or futures contracts; b) on-marketable securities; and c) margin transactions or any other borrowing of money except for emergencies, such as a need for a commingled fund to meet redemption requests. REVIEW PROCEDURES All Investment Policies, Objectives and Guidelines contained in this Statement shall be reviewed by the Board annually, or whenever circumstances occur that may, in the judgment of the Board, significantly affect the Fund. The Board shall notify the Investment Consultant, any appropriate Investment Manager, and/or the Fund Custodian of any changes and/or additions to this Investment Policy that, in the judgment of the Board, are deemed appropriate. 1. Investment performance will be reviewed quarterly. 2. Fund, asset class (e.g. domestic equity, international equity, domestic fixed income), and asset sub-class and/or “style” returns shall be compared to 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 and evaluation of the risk/reward posture of the investment. 3. It is expected that the investment performance of any Investment Manager(s) will rank above agreed upon benchmark medians over periods of three (3) or more years and will meet or exceed the Investment Objectives previously identified in this Statement. Investment Manager(s) are instructed to keep the Board and consultant abreast of any material changes in firm structure, 17

ownership, management and investment team. Any Investment Manager(s) failing to keep pace with stated performance norms may be placed on probation and evaluated as to whether it is in the best interest of the Fund to have the Board retain the services of said Investment Manager(s). 4. Notwithstanding the provisions of the preceding paragraph, the Board reserves the right to terminate a relationship with any Investment Manager(s) at any time, subject to the terms of any investment advisory agreement, if the Board determines that said action is warranted. In addition, the Board reserves the right to remove assets from any Investment Manager’s Account, in part or in whole, at any time. 5. Investment Manager(s) shall provide statements of assets under management to the Board quarterly, and shall also comply with reasonable additional 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’s assets. 6. Investment Managers of individually managed portfolios shall meet with the Board at least annually, if requested by the Board, to review the Fund and any respective Accounts, and to discuss investment results in the context of all of the goals Investment Objectives, and Investment Guidelines set forth in this Statement. Such meetings may take place in person, or over the Internet, or by conference call. 7. The Board will periodically review plan fees and expenses, including, but not limited to, investment management and custodial fees and expenses. SIGNATURES The effective date of this Investment Policy Statement, adopted by the Other Post Employment Benefits (OPEB) Board on August 8, 2013. Chairperson Membet Membet Member Member Member Effective Date: July 2010 Amended: November 8, 2012 Amended: August 8, 2013 18

AMENDMENT 1 OPEB INVESTMENT POLICY STATEMENT 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% 3% 4% 6% 7% 8% 10% Intermediate Term Bond 11% 11% 12% 12% 13% 16% 18% Long Term Bond 22% 24% 26% 28% 30% 36% 42% Large Cap Value – US Stock 10% 10% 9% 9% 8% 7% 4% Large Cap Growth – US Stock 10% 9% 9% 8% 8% 5% 4% Mid Cap – US Stock 5% 5% 5% 5% 5% 4% 3% Small Cap – US Stock 5% 5% 4% 3% 3% 3% 3% Real Estate/REIT 5% 5% 4% 4% 3% 3% 3% Non‐US Stock 10% 9% 9% 8% 7% 6% 3% Emerging Markets 15% 14% 13% 12% 11% 7% 5% Equity 60% 57% 53% 49% 45% 35% 25% Fixed Income/Cash 40% 43% 47% 51% 55% 65% 75% II.Performance Monitoring Benchmarks – The plan will utilize asset category specific benchmarks 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 Category Index Cash & Money Market CitiGroup 3 Month TBill Short‐term Bond BofA Merrill Lynch 1‐3 Yr Corp Index Intermediate‐term Bond BarCap Interm 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 Stock MSCI EAFE Non‐US Small Cap Stock MSCI EAFE Small Cap Emerging Markets MSCI EM (Emerging Markets) REITS/Real Estate FTSE NAREIT Equity REIT 19

AMENDMENT I TO THE INVESTMENT POLICY STATEMENT FOR Ill. 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: 11/8/12 Approved by: Chairman Title: 20

250 Washington Ave Ext Albany, NY 12203 USA Tel +1 518 514 7157 Fax +1 518 514 7200 MEMO milliman.com To: City of Dover, Delaware OPEB Plan – Board From: Jeff Marzinsky & Kevin Abessi /Milliman Re: Investment Committee Meeting Notes – 11/14/2013 Enclosures: Milliman Quarterly Investment Monitor Report (QIM) 1. OPEB Plan Investment Review through 9/30/2013: a. As of 9/30/2013, assets in the plan total $14.14 million, up from $13.41 million as of 6/30/2013. During the quarter, the plan had contributions of approximately $244 thousand, no withdrawals, and fees of $1.3 thousand. b. Total performance of the plan portfolio was 3.58% net (3.65% gross) for the quarter, in line with the Plan’s benchmark index performance of 3.71%. 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 ADVANTAGE CASH 2.00% 0-10%; target 10% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 8.00% 0-10%; target 10% Cash + STB Inflation Protected Bonds TIPS Vanguard Inflation Prot Sec 2.00% 0-7%; target of 2% TIPS Intermediate Term Bonds INTB PIMCO Total Return 5.00% 5-15%; target 10% INTB Intermediate Term Bonds INTB Vanguard Total Bond Mkt Index Signa 5.00% 5-15%; target 10% INTB Long Term Bonds LTB PIMCO Long Duration 5.00% 5-15%; target 10% LTB Long Term Bonds LTB Vanguard Long Duration 5.00% 5-15%; target 10% LTB High Yield Bond HYB Ivy High Income I 8.00% 3-13%; target 8% HYB Large Cap Value LCV American Funds Washington Mutual 11.00% 6-16%; target 11% LCV Large Cap Blend LCB Vanguard 500 Index 0.00% REMOVED Large Cap Growth LCG Vanguard Growth Index 10.00% 5-15%; target 10% LCG Mid Cap MCV Vanguard Mid Cap Value Index 5.00% 0-10%; target 5% MC Small Cap SCV Target Small Cap Value 8.00% 0-13%; target 8% SC Real Estatement Investment REIT Vanguard REIT Index 6.00% 0-10%; target 6% REIT Foreign Equity GLB American Funds New Perspective 5.00% 5-15%; target 10% GLB Foreign Equity GLB Harding Loevner Global Equity 5.00% 5-15%; target 10% GLB Emerging Markets EMG Vanguard Emerging Mkts 10.00% 5-15%; target 10% Emg Mkts Offices in Principal Cities Worldwide

Meeting Notes Page 2 2. Comments on specific funds: a. American Funds New Perspective and Harding Loevner Equity  Both funds are "world allocation" mandates; including US, non-US and 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 OPEB Trust Quarterly Return Summary OPEB-NET OPEB-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 7/31/2013 $ 13,402,467.68 $ - $ - $ 1,250.00 $ 316,012.14 $ 13,717,229.82 2.36% 2.38% 8/31/2013 $ 13,717,229.82 $ - $ - $ - $ (320,314.30) $ 13,396,915.52 -2.34% -2.31% 9/30/2013 $ 13,396,915.52 $ 243,925.00 $ - $ - $ 492,846.98 $ 14,133,687.50 3.61% 3.64% $ 243,925.00 $ - $ 1,250.00 $ 488,544.82 Quarterly Return 3.58% 3.65% Milliman, Inc.

Quarterly Investment Monitor Summary Report for the Quarter Ending September 30, 2013 Prepared for City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45

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

Quarterly Investment Monitor Market Indices - 3rd Quarter 2013 Index 3 1 3 5 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Growth of $100 1 Total Return, % 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 6

Quarterly Investment Monitor International Market Commentary - 3rd Quarter 2013 International - Quarter Jul-13 - Sep-13 16 14 International - Five Years 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 Jul-13 - Sep-13 100 16 14 12 80 Total Return, % 10 8 60 6 Sep-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Sep-13 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 Other Postemployment Benefit (OPEB) GASB 45 7

Quarterly Investment Monitor Data as of 09/30/2013 Performance Summary City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 Cash Inv MMkt I $285,812 2.02% $267,689 2.00% WFIXX Vanguard Short-Term Bond Index Signal $1,145,247 8.10% $401,046 2.99% VBSSX Vanguard Inflation-Protected Secs I $287,904 2.04% $249,628 1.86% VIPIX PIMCO Total Return Instl $718,526 5.08% $714,649 5.33% PTTRX Vanguard Total Bond Market Index Signal $719,452 5.09% $722,890 5.39% VBTSX PIMCO Long Duration Total Return Instl $728,053 5.15% $1,371,317 10.23% PLRIX Vanguard Long-Term Bond Index I $732,160 5.18% $1,381,093 10.30% VBLLX Ivy High Income I $1,140,388 8.06% $0 0.00% IVHIX American Funds Washington Mutual R6 $1,534,507 10.85% $1,487,579 11.09% RWMGX Vanguard Growth Index I $1,404,159 9.93% $1,433,999 10.69% VIGIX Vanguard Mid Cap Index Adm $701,022 4.96% $736,659 5.49% VIMAX Target Small Capitalization Value T $1,141,951 8.08% $731,868 5.46% TASVX American Funds New Perspective R6 $701,799 4.96% $705,468 5.26% RNPGX Harding Loevner Global Equity Inst $702,802 4.97% $678,507 5.06% HLMVX Vanguard Emerging Mkts Stock Idx I $1,365,872 9.66% $1,838,036 13.71% VEMIX Vanguard REIT Index I $830,621 5.87% $688,882 5.14% VGSNX Plan Total $14,140,274 $13,409,310 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 Total Return Instl 13 9 1.36 3.00 1.74 1.35 36 47 9 0 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 American Funds Washington Mutual R6 21 36 0.73 1.17 0.76 0.83 6 4 20 16 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 Other Postemployment Benefit (OPEB) GASB 45 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 Total Bond Market Index Signal -0.13 NA 1.01 0.23 NA NA 0.10 Vanguard Long-Term Bond Index I -0.01 0.01 1.01 0.79 1.02 0.81 0.07 Vanguard Growth Index I 1.37 1.17 0.97 0.80 1.00 0.98 0.08 Vanguard Mid Cap Index Adm -0.17 0.52 1.03 0.85 1.01 1.21 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 Other Postemployment Benefit (OPEB) GASB 45 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 Cash Inv MMkt I 0.00 0.03 0.05 0.07 0.28 1.83 WFIXX 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 PIMCO Total Return Instl 1.17 (1.89) (0.74) 3.77 7.96 6.12 PTTRX 5.00 0.46 Intermediate-term Bond Vanguard Total Bond Market Index Signal 0.54 (1.95) (1.83) 2.76 5.34 4.54 VBTSX 2.00 0.10 BC Intermediate Government/Credit 0.62 (0.84) (0.50) 2.41 4.95 4.10 N/A NA NA Barclays US Agg Float Adj TR USD 0.53 (1.91) (1.68) 2.89 NA NA N/A NA NA 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 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 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 American Funds Washington Mutual R6 4.77 20.43 20.97 16.59 9.55 7.62 RWMGX 5.00 0.30 S&P 500 Value 3.84 20.17 22.15 15.86 8.38 7.74 N/A NA NA Large Growth Vanguard Growth Index I 8.47 19.98 18.69 17.05 11.76 8.06 VIGIX 4.00 0.08 CRSP US Large Cap Growth TR USD 8.49 19.38 17.81 15.68 10.59 8.05 N/A NA NA Mid-Cap Blend Vanguard Mid Cap Index Adm 7.67 24.43 27.95 17.13 13.17 10.59 VIMAX 4.00 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 OPEB-GROSS RETURN 3.65 4.96 6.19 8.38 NA NA N/A NA NA Total Plan OPEB-NET RETURN 3.58 4.70 5.83 7.96 NA NA N/A NA NA OPEB Plan Policy Index 3.71 5.04 6.67 8.51 7.12 6.38 N/A NA NA City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 PIMCO Total Return Instl Vanguard Total Bond Market Index Signal PIMCO Long Duration Total Return Instl Vanguard Long-Term Bond Index I Ivy High Income I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 13

Quarterly Investment Monitor Data as of 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 American Funds Washington Mutual R6 Vanguard Growth Index I Vanguard Mid Cap Index Adm Target Small Capitalization Value T Vanguard REIT Index I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 14

Quarterly Investment Monitor Data as of 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 Other Postemployment Benefit (OPEB) GASB 45 15

Quarterly Investment Monitor Data as of 09/30/2013 Core Fund Review City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 16

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Short-Term Bond Index Signal 1.10 Portfolio Information Investment Strategy Summary 10.95 % Cash Ticker VBSSX % US Stocks Morningstar Category Short-term Bond % Bonds The investment seeks to track the performance of a market-weighted bond index with a Avg Mkt Cap $MM NA % Non-US Stocks short-term dollar-weighted average maturity. The fund employs an indexing investment Cat Med Mkt Cap $MM 85765.91 approach designed to track the performance of the Barclays U.S. 1-5 Year % Pref Net Assets $MM 33077.30 Government/Credit Float Adjusted Index. This Index includes all medium and larger issues % Conv Turnover Ratio 51.00 of U.S. government, investment-grade corporate, and investment-grade international % Other % Assets in Top 10 Holdings 13.90 dollar-denominated bonds that have maturities between 1 and 5 years and are publicly % Non-US Bonds Total Number of Holdings 1705.00 issued. All of the fund's investments will be selected through the sampling process, and at Manager Name Joshua C. Barrickman least 80% of the fund's assets will be invested in bonds held in the index. 87.90 Manager Tenure 0.60 _______________________________________________________________________ Fund Incept Date 03/01/1994 __ Prospectus Exp Ratio 0.10 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States NA % Cash 1.10 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 2 % Asia - Emerging NA 1 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 250 % Basic Materials NA Avg Eff Duration 2.72 0 % Communication Services NA Effective Maturity 2.80 % Consumer Cyclical NA Avg Credit Quality AA 225 -1 % Consumer Defensive NA AAA 75.63 % Healthcare NA AA 4.21 200 -2 % Industrials NA A 11.61 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 8.55 175 % Technology NA BB 0.00 5th to 25th Percentile 25th to Median % Energy NA B 0.00 Prospectus Exp Ratio 150 Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 0.00 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD % Utilities NA NR/NA 0.00 1 125 Turnover 100 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years US Treasury Note 0.25% 2.28% 75 Vanguard Short-Term Bond Index Signal 0.57 0.04 0.18 1.51 3.46 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% 50 Universe(5%) 1.10 1.45 2.58 3.69 6.15 US Treasury Note 2.625% 1.32% 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 Universe(75%) 0.33 -0.28 0.00 1.25 2.78 US Treasury Note 0.875% 1.20% Universe(95%) 0.14 -1.44 -1.24 0.51 1.62 US Treasury Note 0.625% 1.19% 0 0 US Treasury Note 1.75% 1.19% Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.25% 1.18% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 5 Total Return, % 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 Up Mkt Capture Ratio, % 350 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 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 2 3 3 3 0 -200 -100 0 100 200 300 400 500 600 700 Down Mkt Capture Ratio, % 1 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Total Annualized StdDev, % Excess Annualized StdDev, % 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD Alpha, % Sharpe Ratio 0 Return vs. Risk 1 1 1 Oct-10 - Sep-13 -1 7 6 Total Annualized Return, % 5 -2 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 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 0 Barclays US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 1.66 0.59 0.00 Universe(5%) 1.56 3.26 86.45 2.25 2.60 2.36 -1 0 1 2 3 4 Universe(25%) 0.48 2.09 72.66 1.51 1.87 1.49 Total Annualized StdDev, % Universe(Median) -0.02 1.54 61.09 1.22 1.29 0.92 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 Other Postemployment Benefit (OPEB) GASB 45 18

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Inflation-Protected Secs I 1.87 Portfolio Information Investment Strategy Summary % Cash Ticker VIPIX % US Stocks Morningstar Category Inflation-Protected Bond % Bonds The investment seeks to provide inflation protection and income consistent with Avg Mkt Cap $MM NA % Non-US Stocks investment in inflation-indexed securities. The fund invests at least 80% of its assets in Cat Med Mkt Cap $MM 21693.40 inflation-indexed bonds issued by the U.S. government, its agencies and instrumentalities, % Pref Net Assets $MM 29347.34 and corporations. It may invest in bonds of any maturity; however, its dollar-weighted % Conv Turnover Ratio 33.00 average maturity is expected to be in the range of 7 to 20 years. At a minimum, all bonds % Other % Assets in Top 10 Holdings 45.39 purchased by the fund will be rated investment-grade or, if unrated, will be considered by % Non-US Bonds Total Number of Holdings 43.00 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 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % 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 -2 % Asia - Emerging NA -4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 1.0 350 % Basic Materials NA Avg Eff Duration 8.14 -6 % Communication Services NA Effective Maturity 8.80 % Consumer Cyclical NA Avg Credit Quality Government 0.9 -8 % Consumer Defensive NA AAA 100.00 300 % Healthcare NA AA 0.00 0.8 -10 % Industrials NA A 0.00 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 0.00 0.7 250 % Technology NA BB 0.00 5th to 25th Percentile 25th to Median % Energy NA B 0.00 Prospectus Exp Ratio 0.6 Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 0.00 200 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD % Utilities NA NR/NA 0.00 0.5 Turnover 150 0.4 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years US Treasury Note 5.75% 0.3 Vanguard Inflation-Protected Secs I 0.91 -6.74 -6.21 3.90 5.09 US Treasury Note 4.98% 100 Barclays US Treasury US TIPS TR USD 0.70 -6.74 -6.10 4.02 5.31 US Treasury Note 4.90% 0.2 Universe(5%) 1.16 -3.77 -3.40 4.11 6.35 US Treasury Note 4.88% 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 Universe(75%) 0.56 -7.25 -6.65 3.12 4.42 US Treasury Note 1.125% 4.51% Universe(95%) 0.39 -9.60 -9.77 2.01 3.33 US Treasury Note 1.25% 4.00% 0.0 0 US Treasury Bond 2.375% 3.93% Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.5% 2.98% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 Up Mkt Capture Ratio, % 140 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 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 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 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Excess Annualized StdDev, % 5 Total Annualized StdDev, % 0 Barclays US Treasury US TIPS TR USD 0.5 3 Sharpe Ratio 4 Alpha, % 0.4 3 2 Return vs. Risk 0.3 -1 2 Oct-10 - Sep-13 0.2 6 1 1 0.1 5 Total Annualized Return, % -2 0.0 0 0 4 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 2 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Inflation-Protected Secs I -0.17 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 0 1 2 3 4 5 6 7 8 9 10 11 Universe(25%) -0.19 1.01 99.32 0.66 5.73 1.27 Total Annualized StdDev, % Universe(Median) -0.47 0.97 98.99 0.61 5.54 0.66 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 Other Postemployment Benefit (OPEB) GASB 45 20

Quarterly Investment Monitor Data as of 09/30/2013 PIMCO Total Return Instl 8.28 Portfolio Information Investment Strategy Summary % Cash Ticker PTTRX % US Stocks Morningstar Category Intermediate-term Bond % Bonds The investment seeks maximum total return, consistent with preservation of capital and Avg Mkt Cap $MM NA % Non-US Stocks prudent investment management. The fund normally invests at least 65% of its total Cat Med Mkt Cap $MM NA assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which % Pref Net Assets $MM 250051.01 may be represented by forwards or derivatives such as options, futures contracts, or swap 40.76 % Conv Turnover Ratio 380.00 agreements. It invests primarily in investment-grade debt securities, but may invest up to % Other 49.34 % Assets in Top 10 Holdings 55.83 10% of its total assets in high yield securities ("junk bonds") rated B or higher by Moody's, % Non-US Bonds Total Number of Holdings 20604.00 or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of Manager Name William H. Gross comparable quality. Manager Tenure 26.41 _______________________________________________________________________ 1.54 Fund Incept Date 05/11/1987 __ Prospectus Exp Ratio 0.46 Portfolio Region Portfolio Structure Phone Number 888-877-4626 Performance vs. Peer Group % United States NA % Cash 8.28 10 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 49.34 % United Kingdom NA % Non-US Stocks 0.00 8 % Eurozone NA % Pref 0.08 Portfolio Ratings % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 1.54 3 Year Mstar Rating 6 % Africa NA % Non-US Bonds 40.76 % Rank Cat 3 Yr 33 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 16 4 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 5 % Asia - Emerging NA 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0 2 500 % Basic Materials NA Avg Eff Duration 5.82 % Communication Services NA Effective Maturity 6.54 % Consumer Cyclical NA Avg Credit Quality NA 450 -2 % Consumer Defensive NA AAA NA % Healthcare NA AA NA 400 -4 % Industrials NA A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB NA 350 % Technology NA BB NA 5th to 25th Percentile 25th to Median % Energy NA B NA Prospectus Exp Ratio 300 Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B NA PIMCO Total Return Instl BC Intermediate Government/Credit % Utilities NA NR/NA NA 1 250 Turnover 200 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Fin Fut Euro$ Cme 06/15/15 15.35% 150 PIMCO Total Return Instl 1.17 -1.89 -0.74 3.77 7.96 Irs Usd 3mls/1.50000s 03/18/15-16 Cme 13.39% BC Intermediate Government/Credit 0.62 -0.84 -0.50 2.41 4.95 Fin Fut Euro$ Cme 12/14/15 9.80% 100 Universe(5%) 0.96 -1.34 -0.14 4.67 8.29 Fin Fut Us 10yr Cbt 09/19/13 3.07% Universe(25%) 0.68 -1.68 -1.23 3.44 7.22 Fin Fut Euro$ Cme 09/14/15 2.79% Universe(Median) 0.41 -2.25 -1.70 2.92 5.24 Fin Fut Euro$ Cme 03/14/16 2.66% 50 Universe(75%) 0.11 -2.76 -2.25 2.05 4.29 FNMA 2.62% Universe(95%) -0.05 -3.35 -3.16 1.69 3.66 US Treasury Note 2% 2.16% 0 0 Irs Usd 3mlq/2.75000s 06/19/13-43 Cme 2.10% Prospectus Exp Ratio Turnover Ratio US Treasury Note 1.89% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 21

Quarterly Investment Monitor Data as of 09/30/2013 PIMCO Total Return Instl Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 25 0 20 25 Total Return Rank, % 15 50 10 Total Return, % 75 5 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 Up Mkt Capture Ratio, % 140 PIMCO Total Return Instl BC Intermediate Government/Credit 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 PIMCO Total Return Instl 5.56 5.14 2.89 3.99 9.07 4.82 13.83 8.83 4.16 10.36 80 BC Intermediate Government/Credit 4.31 3.04 1.58 4.08 7.39 5.08 5.24 5.89 5.80 3.89 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 2 2 5 3 0 0 20 40 60 80 100 120 140 160 Down Mkt Capture Ratio, % 4 1 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Total Annualized StdDev, % Excess Annualized StdDev, % 2 BC Intermediate Government/Credit 3 Alpha, % Sharpe Ratio 0 1 2 Return vs. Risk 1 Oct-10 - Sep-13 -1 6 1 5 Total Annualized Return, % -2 0 0 0 4 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile PIMCO Total Return Instl BC Intermediate Government/Credit 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 PIMCO Total Return Instl 0.49 1.38 63.55 0.92 3.99 2.57 1 BC Intermediate Government/Credit 0.00 1.00 100.00 1.01 2.30 0.00 Universe(5%) 1.79 1.28 93.79 1.24 4.06 2.86 0 0 1 2 3 4 5 Universe(25%) 0.73 1.21 88.91 1.10 3.55 2.39 Total Annualized StdDev, % Universe(Median) 0.20 1.15 72.85 0.88 2.97 1.60 Universe(75%) -0.44 1.04 56.09 0.76 2.61 1.04 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Universe(95%) -1.18 0.90 52.67 0.50 2.32 0.61 Cash BC Intermediate Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 22

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Total Bond Market Index Signal 2.71 Portfolio Information Investment Strategy Summary 8.89 % Cash Ticker VBTSX % US Stocks Morningstar Category Intermediate-term Bond % Bonds The investment seeks the performance of a broad, market-weighted bond index. The fund Avg Mkt Cap $MM NA % Non-US Stocks employs an indexing investment approach designed to track the performance of the Cat Med Mkt Cap $MM NA Barclays U.S. Aggregate Float Adjusted Index. This Index represents a wide spectrum of % Pref Net Assets $MM 109023.11 public, investment-grade, taxable, fixed income securities in the United States-including % Conv Turnover Ratio 80.00 government, corporate, and international dollar-denominated bonds, as well as % Other % Assets in Top 10 Holdings 6.09 mortgage-backed and asset-backed securities-all with maturities of more than 1 year. All % Non-US Bonds Total Number of Holdings 16057.00 of the fund's investments will be selected through the sampling process, and at least 80% Manager Name Kenneth Volpert of the fund's assets will be invested in bonds held in the index. 88.29 Manager Tenure 20.84 _______________________________________________________________________ Fund Incept Date 12/11/1986 __ Prospectus Exp Ratio 0.10 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States NA % Cash 2.71 10 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 88.29 % United Kingdom NA % Non-US Stocks 0.00 8 % Eurozone NA % Pref 0.06 Portfolio Ratings % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.05 3 Year Mstar Rating 6 % Africa NA % Non-US Bonds 8.89 % Rank Cat 3 Yr 70 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 75 4 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 46 % Asia - Emerging NA 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0 2 500 % Basic Materials NA Avg Eff Duration 5.45 % Communication Services NA Effective Maturity 7.40 % Consumer Cyclical NA Avg Credit Quality AA 450 -2 % Consumer Defensive NA AAA 72.73 % Healthcare NA AA 3.68 400 -4 % Industrials NA A 11.93 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 11.66 350 % Technology NA BB 0.00 5th to 25th Percentile 25th to Median % Energy NA B 0.00 Prospectus Exp Ratio 300 Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 0.00 Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD % Utilities NA NR/NA 0.00 1 250 Turnover 200 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years US Treasury Bond 6.25% 0.70% 150 Vanguard Total Bond Market Index Signal 0.54 -1.95 -1.83 2.76 5.34 US Treasury Note 1.75% 0.70% Barclays US Agg Float Adj TR USD 0.53 -1.91 -1.68 2.89 NA US Treasury Note 0.375% 0.69% 100 Universe(5%) 0.96 -1.34 -0.14 4.67 8.29 US Treasury Note 0.375% 0.63% Universe(25%) 0.68 -1.68 -1.23 3.44 7.22 US Treasury Note 0.25% 0.59% Universe(Median) 0.41 -2.25 -1.70 2.92 5.24 US Treasury Note 0.25% 0.56% 50 Universe(75%) 0.11 -2.76 -2.25 2.05 4.29 US Treasury Note 0.375% 0.56% Universe(95%) -0.05 -3.35 -3.16 1.69 3.66 US Treasury Note 1.625% 0.56% 0 0 US Treasury Note 2.125% 0.55% Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.625% 0.54% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 23

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Total Bond Market Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 25 0 20 25 Total Return Rank, % 15 50 10 Total Return, % 75 5 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-13 160 -15 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 Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 120 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 Vanguard Total Bond Market Index Signal 3.97 4.24 2.40 4.29 7.02 5.15 6.04 6.54 7.68 4.15 Barclays US Agg Float Adj TR USD NA NA NA NA NA NA NA 6.58 7.92 4.32 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 5 4 0 -20 0 20 40 60 80 100 120 140 Down Mkt Capture Ratio, % 2 4 3 Morningstar IntermTerm Bond Universe Vanguard Total Bond Market Index Signal Total Annualized StdDev, % Excess Annualized StdDev, % Barclays US Agg Float Adj TR USD 1 3 Alpha, % Sharpe Ratio 1 2 0 2 Return vs. Risk Oct-10 - Sep-13 1 6 -1 1 5 Total Annualized Return, % -2 0 0 0 4 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 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 Total Bond Market Index Signal -0.16 1.01 99.40 0.92 2.89 0.23 1 Barclays US Agg Float Adj TR USD 0.00 1.00 100.00 0.98 2.85 0.00 Universe(5%) 2.05 1.08 96.72 1.24 4.06 3.02 0 0 1 2 3 4 5 Universe(25%) 0.76 1.02 92.39 1.10 3.55 1.80 Total Annualized StdDev, % Universe(Median) 0.25 0.90 75.30 0.88 2.97 1.53 Universe(75%) -0.48 0.88 73.55 0.76 2.61 0.80 Morningstar IntermTerm Bond Universe Vanguard Total Bond Market Index Signal Universe(95%) -1.26 0.72 45.86 0.50 2.32 0.53 Cash Barclays US Agg Float Adj TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 24

Quarterly Investment Monitor Data as of 09/30/2013 PIMCO Long Duration Total Return Instl 6.97 Portfolio Information Investment Strategy Summary % Cash 20.75 Ticker PLRIX % US Stocks Morningstar Category Long-term Bond % Bonds The investment seeks maximum total return, consistent with prudent investment Avg Mkt Cap $MM 65992.63 % Non-US Stocks management. The fund invests at least 65% of its total assets in a diversified portfolio of Cat Med Mkt Cap $MM NA Fixed Income Instruments of varying maturities, which may be represented by forwards or % Pref Net Assets $MM 5782.12 derivatives such as options, futures contracts or swap agreements. It invests primarily in % Conv Turnover Ratio 81.00 investment grade debt securities, but may invest up to 10% of its total assets in high yield % Other % Assets in Top 10 Holdings 33.49 securities ("junk bonds") that are rated B or higher by Moody's, or equivalently rated by % Non-US Bonds Total Number of Holdings 858.00 S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. Manager Name Stephen A. Rodosky _______________________________________________________________________ 71.80 Manager Tenure 6.17 __ Fund Incept Date 08/31/2006 Prospectus Exp Ratio 0.50 Portfolio Region Portfolio Structure Phone Number 888-877-4626 Performance vs. Peer Group % United States 100.00 % Cash 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 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 400 % Basic Materials 0.00 Avg Eff Duration 14.02 % 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 -15 % Industrials 0.00 A NA 300 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 0.00 BB NA 250 5th to 25th Percentile 25th to Median % Energy 0.00 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 100.00 Below B NA PIMCO Long Duration Total Return Instl BC Long Government/Credit % Utilities 0.00 NR/NA NA 1 200 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings 150 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% Universe(75%) -0.36 -6.70 -5.68 4.22 8.41 US Treasury Bond 3.125% 2.19% Universe(95%) -2.11 -10.80 -11.13 2.14 4.47 U S Treas Bd Stripped Prin Pmt 1.57% 0 0 Quebec Prov Cda 5.75% 1.48% Prospectus Exp Ratio Turnover Ratio US Treasury Bond 5.25% 1.39% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 10.28 100 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 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 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Excess Annualized StdDev, % 10 10 Total Annualized StdDev, % 4 BC Long Government/Credit Sharpe Ratio 3 8 8 Alpha, % 1 2 6 6 Return vs. Risk 1 4 4 Oct-10 - Sep-13 0 9 2 2 8 -1 Total Annualized Return, % 7 -2 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile PIMCO Long Duration Total Return Instl BC Long Government/Credit 5 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 PIMCO Long Duration Total Return Instl 0.02 0.90 94.30 0.52 8.62 2.26 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 0 5 10 15 20 25 Universe(25%) 3.53 0.77 79.63 0.98 8.15 8.85 Total Annualized StdDev, % Universe(Median) 2.33 0.39 60.36 0.78 5.92 7.00 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 Other Postemployment Benefit (OPEB) GASB 45 26

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Long-Term Bond Index I Portfolio Information Investment Strategy Summary % Cash 14.14 Ticker VBLLX % US Stocks Morningstar Category Long-term Bond % Bonds The investment seeks to track the performance of a market-weighted bond index with a Avg Mkt Cap $MM NA % Non-US Stocks long-term dollar-weighted average maturity. The fund employs an indexing investment Cat Med Mkt Cap $MM NA approach designed to track the performance of the Barclays U.S. Long Government/Credit % Pref Net Assets $MM 5621.45 Float Adjusted Index. This Index includes all medium and larger issues of U.S. % Conv Turnover Ratio 41.00 government, investment-grade corporate, and investment-grade international % Other % Assets in Top 10 Holdings 18.41 dollar-denominated bonds that have maturities of greater than 10 years and are publicly % Non-US Bonds Total Number of Holdings 1571.00 issued. All of the fund's investments will be selected through the sampling process, and at Manager Name Joshua C. Barrickman least 80% of the fund's assets will be invested in bonds held in the index. 85.29 Manager Tenure 0.60 _______________________________________________________________________ Fund Incept Date 03/01/1994 __ Prospectus Exp Ratio 0.07 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States NA % Cash 0.50 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 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 400 % Basic Materials NA Avg Eff Duration 14.13 % 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 -15 % Industrials NA A 25.15 300 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 27.49 % Technology NA BB 0.00 250 5th to 25th Percentile 25th to Median % Energy NA B 0.00 Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 0.00 Vanguard Long-Term Bond Index I BC Long Government/Credit % Utilities NA NR/NA 0.00 1 200 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings 150 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% Universe(75%) -0.36 -6.70 -5.68 4.22 8.41 US Treasury Bond 4.625% 1.71% Universe(95%) -2.11 -10.80 -11.13 2.14 4.47 US Treasury Bond 4.375% 1.65% 0 0 US Treasury Bond 4.375% 1.63% Prospectus Exp Ratio Turnover Ratio US Treasury Bond 3.125% 1.54% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 27

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 8.63 100 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 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 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Excess Annualized StdDev, % 10 10 Total Annualized StdDev, % 4 BC Long Government/Credit Sharpe Ratio 3 8 8 Alpha, % 1 2 6 6 Return vs. Risk 1 4 4 Oct-10 - Sep-13 0 9 2 2 8 -1 Total Annualized Return, % 7 -2 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Long-Term Bond Index I BC Long Government/Credit 5 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 Vanguard Long-Term Bond Index I -0.05 1.01 99.31 0.52 9.45 0.79 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 0 5 10 15 20 25 Universe(25%) 3.53 0.77 79.63 0.98 8.15 8.85 Total Annualized StdDev, % Universe(Median) 2.33 0.39 60.36 0.78 5.92 7.00 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 Other Postemployment Benefit (OPEB) GASB 45 28

Quarterly Investment Monitor Data as of 09/30/2013 Ivy High Income I 11.72 Portfolio Information Investment Strategy Summary % Cash Ticker IVHIX % US Stocks Morningstar Category High Yield Bond % Bonds The investment seeks to provide total return through a combination of high current income Avg Mkt Cap $MM NA % Non-US Stocks and capital appreciation. The fund invests primarily in a diversified portfolio of high-yield, 37.97 Cat Med Mkt Cap $MM 11135.61 high-risk, fixed income securities, including secured and unsecured loan assignments, loan % Pref Net Assets $MM 8665.75 participations and other loan instruments (loans), of U.S. and foreign issuers, the risks of % Conv Turnover Ratio 68.00 which are, in the judgment of the adviser consistent with the fund's objective. It invests % Other % Assets in Top 10 Holdings 20.35 primarily in lower quality debt securities, which include debt securities rated BBB+ or % Non-US Bonds Total Number of Holdings 320.00 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 Portfolio Region Portfolio Structure Phone Number 800-777-6472 Performance vs. Peer Group % 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 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 4 2 160 % Basic Materials NA Avg Eff Duration 4.10 % 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 0 % Industrials NA A 0.45 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 0.72 % Technology NA BB 10.09 100 5th to 25th Percentile 25th to Median % Energy NA B 53.93 Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services NA Below B 27.26 Ivy High Income I BC High Yield Corporate Bond % Utilities NA NR/NA 7.49 1 80 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings 60 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% Universe(75%) 1.85 2.63 5.57 7.68 10.18 Hd Sply 11.5% 1.55% Universe(95%) 1.35 1.34 3.58 6.05 8.13 Delta 2 Sarl Tl 1l 1.47% 0 0 Delta 2 Sarl Tl 1l 1.31% Prospectus Exp Ratio Turnover Ratio Aa Bond Co Ltd 144a 1.28% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 29

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 25 Total Return Rank, % 60 50 40 Total Return, % 75 20 100 0 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -20 Up/Down Market Capture Ratio 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 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 3 9 5 0 0 20 40 60 80 100 120 140 160 180 8 4 Down Mkt Capture Ratio, % 4 7 3 Morningstar High Yield Universe Ivy High Income I Total Annualized StdDev, % Excess Annualized StdDev, % 2 6 BC High Yield Corporate Bond 2 3 Sharpe Ratio 5 Alpha, % 1 4 2 Return vs. Risk 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 0 2 4 6 8 10 12 14 Universe(25%) 0.24 1.08 98.66 1.35 7.20 2.04 Total Annualized StdDev, % Universe(Median) -0.83 0.99 97.62 1.21 6.67 1.22 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 Other Postemployment Benefit (OPEB) GASB 45 30

Quarterly Investment Monitor Data as of 09/30/2013 American Funds Washington Mutual R6 1.60 1.73 Portfolio Information Investment Strategy Summary 7.88 % Cash Ticker RWMGX % US Stocks Morningstar Category Large Value % Bonds The investment seeks to produce income and to provide an opportunity for growth of Avg Mkt Cap $MM 76633.28 % Non-US Stocks principal consistent with sound common stock investing. The fund invests primarily in Cat Med Mkt Cap $MM 73259.36 common stocks of established companies that are listed on, or meet the financial listing % Pref Net Assets $MM 62967.99 requirements of, the New York Stock Exchange and have a strong record of earnings and % Conv Turnover Ratio 22.00 dividends. Its advisor strives to maintain a fully invested, diversified portfolio, consisting % Other % Assets in Top 10 Holdings 35.26 primarily of high-quality common stocks. % Non-US Bonds Total Number of Holdings 169.00 Manager Name Alan N. Berro _______________________________________________________________________ __ 88.75 Manager Tenure 15.76 Fund Incept Date 07/31/1952 Prospectus Exp Ratio 0.30 Portfolio Region Portfolio Structure Phone Number 800-421-4225 Performance vs. Peer Group % United States 91.85 % Cash 1.60 30 % Canada 1.82 % US Stocks 88.75 % Latin America 0.00 % Bonds 0.04 % United Kingdom 3.35 % Non-US Stocks 7.88 25 % Eurozone 1.63 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 1.17 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 1.73 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 13 20 % Middle East 0.14 5 Year Mstar Rating % Japan 0.04 % Rank Cat 5 Yr 29 % Australasia 0.00 10 Year Mstar Rating 15 % Asia - Developed 0.00 % Rank Cat 10 Yr 41 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 180 % Basic Materials 3.28 Avg Eff Duration NA % Communication Services 5.46 Effective Maturity NA 5 % Consumer Cyclical 12.02 Avg Credit Quality NA 160 % Consumer Defensive 9.60 AAA NA % Healthcare 12.25 AA NA 140 0 % Industrials 21.03 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 6.60 BB NA 120 5th to 25th Percentile 25th to Median % Energy 12.32 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 13.07 Below B NA 100 American Funds Washington Mutual R6 S&P 500 Value % Utilities 4.38 NR/NA NA 1 Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Home Depot, Inc. 5.35% 60 American Funds Washington Mutual R6 4.77 20.43 20.97 16.59 9.55 Boeing Co 4.76% S&P 500 Value 3.84 20.17 22.15 15.86 8.38 Chevron Corp 4.37% 40 Universe(5%) 7.03 25.75 29.44 18.47 11.90 Merck & Co Inc 3.86% Universe(25%) 5.54 22.67 25.09 16.30 10.18 Union Pacific Corp 3.01% 20 Universe(Median) 4.64 20.61 22.24 15.23 9.04 Royal Dutch Shell PLC ADR Class B 2.98% Universe(75%) 3.89 19.04 19.58 13.78 7.81 Verizon Communications Inc 2.85% Universe(95%) 2.75 14.70 13.70 11.21 6.14 Wells Fargo & Co 2.78% 0 0 American Express Co 2.66% Prospectus Exp Ratio Turnover Ratio PepsiCo Inc 2.62% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 31

Quarterly Investment Monitor Data as of 09/30/2013 American Funds Washington Mutual R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Oct-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-13 -30 Up/Down Market Capture Ratio -40 Oct-10 - Sep-13 180 -50 160 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Up Mkt Capture Ratio, % 140 American Funds Washington Mutual R6 S&P 500 Value 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 American Funds Washington Mutual R6 25.83 9.92 3.55 18.04 3.97 -33.10 19.24 13.69 7.35 12.85 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 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 2 18 7 0 0 20 40 60 80 100 120 140 160 180 4 16 6 Down Mkt Capture Ratio, % 3 14 Morningstar Large Value Universe American Funds Washington Mutual R6 Excess Annualized StdDev, % 5 Total Annualized StdDev, % 2 12 S&P 500 Value 1 Sharpe Ratio 10 4 Alpha, % 0 1 8 -1 3 Return vs. Risk 6 -2 2 Oct-10 - Sep-13 4 30 -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 American Funds Washington Mutual R6 S&P 500 Value 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error American Funds Washington Mutual R6 4.36 0.74 93.43 1.52 10.43 4.47 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 0 5 10 15 20 25 Universe(25%) 1.27 1.04 97.54 1.22 14.53 4.36 Total Annualized StdDev, % Universe(Median) -0.03 0.97 95.91 1.12 13.43 3.13 Universe(75%) -1.46 0.88 92.52 1.02 12.27 2.29 Morningstar Large Value Universe American Funds Washington Mutual R6 Universe(95%) -4.29 0.67 84.56 0.81 9.78 1.65 Cash S&P 500 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 32

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Growth Index I 1.40 Portfolio Information Investment Strategy Summary % Cash Ticker VIGIX % US Stocks Morningstar Category Large Growth % Bonds The investment seeks to track the performance of a benchmark index that measures the Avg Mkt Cap $MM 46343.19 % Non-US Stocks investment return of large-capitalization growth stocks. The fund employs an indexing Cat Med Mkt Cap $MM 56784.53 investment approach designed to track the performance of the CRSP US Large Cap Growth % Pref Net Assets $MM 33503.11 Index, a broadly diversified index predominantly made up of growth stocks of large U.S. % Conv Turnover Ratio 21.00 companies. It attempts to replicate the target index by investing all, or substantially all, of % Other % Assets in Top 10 Holdings 24.76 its assets in the stocks that make up the index, holding each stock in approximately the % Non-US Bonds Total Number of Holdings 344.00 same proportion as its weighting in the index. Manager Name Gerard C. O'Reilly _______________________________________________________________________ Manager Tenure 18.76 98.39 __ Fund Incept Date 11/02/1992 Prospectus Exp Ratio 0.08 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States 98.60 % Cash 0.21 30 % Canada 0.25 % US Stocks 98.39 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.58 % Non-US Stocks 1.40 25 % Eurozone 0.16 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 0.27 % 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 21 20 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 28 % Australasia 0.00 10 Year Mstar Rating 15 % Asia - Developed 0.13 % Rank Cat 10 Yr 35 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 300 % Basic Materials 3.00 Avg Eff Duration NA % Communication Services 3.69 Effective Maturity NA 5 % Consumer Cyclical 18.39 Avg Credit Quality NA % Consumer Defensive 8.42 AAA NA 250 % Healthcare 9.73 AA NA 0 % Industrials 10.06 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 5.19 BBB NA % Technology 28.08 BB NA 200 5th to 25th Percentile 25th to Median % Energy 7.39 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 5.82 Below B NA Vanguard Growth Index I CRSP US Large Cap Growth TR USD % Utilities 0.24 NR/NA NA 1 150 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Apple Inc 6.02% 100 Vanguard Growth Index I 8.47 19.98 18.69 17.05 11.76 Google, Inc. Class A 3.41% CRSP US Large Cap Growth TR USD 8.49 19.38 17.81 15.68 10.59 International Business Machines Corp 3.06% Universe(5%) 13.89 28.81 29.58 19.02 15.43 Coca-Cola Co 2.28% 50 Universe(25%) 10.80 23.15 23.10 16.90 12.27 Philip Morris International, Inc. 1.96% Universe(Median) 8.99 20.99 20.13 15.34 10.38 Home Depot, Inc. 1.64% Universe(75%) 7.45 18.80 17.74 13.65 9.08 Intel Corp 1.64% Universe(95%) 5.13 15.81 14.03 11.28 6.68 Oracle Corporation 1.62% 0 0 Qualcomm, Inc. 1.58% Prospectus Exp Ratio Turnover Ratio Amazon.com Inc 1.55% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 33

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Growth Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 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-13 250 -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 Growth Index I CRSP US Large Cap Growth TR USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Growth Index I 26.09 7.34 5.24 9.16 12.73 -38.19 36.50 17.17 1.89 17.04 100 CRSP US Large Cap Growth TR USD 31.56 6.99 6.40 10.32 15.66 -38.67 35.92 15.77 0.58 15.20 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 4 2 18 8 0 0 25 50 75 100 125 150 175 200 225 3 16 7 Down Mkt Capture Ratio, % 2 14 6 Morningstar Large Growth Universe Vanguard Growth Index I Total Annualized StdDev, % Excess Annualized StdDev, % 1 12 CRSP US Large Cap Growth TR USD 5 Sharpe Ratio 0 10 Alpha, % 1 4 -1 8 Return vs. Risk 3 -2 6 Oct-10 - Sep-13 2 35 -3 4 -4 2 1 30 Total Annualized Return, % -5 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 Vanguard Growth Index I CRSP US Large Cap Growth TR USD 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 Growth Index I 1.55 0.97 99.69 1.27 12.99 0.80 5 CRSP US Large Cap Growth TR USD 0.00 1.00 100.00 1.16 13.32 0.00 Universe(5%) 3.25 1.23 97.90 1.35 17.06 7.09 0 0 5 10 15 20 25 30 Universe(25%) 1.12 1.09 96.23 1.19 15.05 4.44 Total Annualized StdDev, % Universe(Median) -0.42 1.03 94.32 1.10 14.09 3.52 Universe(75%) -2.18 0.96 91.75 0.97 13.26 2.77 Morningstar Large Growth Universe Vanguard Growth Index I Universe(95%) -4.74 0.82 82.42 0.78 11.60 2.14 Cash CRSP US Large Cap Growth TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 34

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Mid Cap Index Adm 2.69 Portfolio Information Investment Strategy Summary % Cash Ticker VIMAX % US Stocks Morningstar Category Mid-Cap Blend % Bonds The investment seeks to track the performance of a benchmark index that measures the Avg Mkt Cap $MM 9317.05 % Non-US Stocks investment return of mid-capitalization stocks. The fund employs an indexing investment Cat Med Mkt Cap $MM 6663.13 approach designed to track the performance of the CRSP US Mid Cap Index, a broadly % Pref Net Assets $MM 42245.20 diversified index of stocks of mid-size U.S. companies. It attempts to replicate the target % Conv Turnover Ratio 17.00 index by investing all, or substantially all, of its assets in the stocks that make up the % Other % Assets in Top 10 Holdings 6.30 index, holding each stock in approximately the same proportion as its weighting in the % Non-US Bonds Total Number of Holdings 369.00 index. Manager Name Donald M. Butler _______________________________________________________________________ Manager Tenure 15.37 96.85 __ Fund Incept Date 05/21/1998 Prospectus Exp Ratio 0.10 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States 97.29 % Cash 0.46 35 % Canada 0.66 % US Stocks 96.85 % Latin America 0.00 % Bonds 0.00 % United Kingdom 1.12 % Non-US Stocks 2.69 30 % Eurozone 0.42 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 0.18 % 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 36 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 15 20 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.33 % Rank Cat 10 Yr 16 % Asia - Emerging 0.00 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 10 3 300 % Basic Materials 5.14 Avg Eff Duration NA % Communication Services 1.91 Effective Maturity NA % Consumer Cyclical 17.70 Avg Credit Quality NA 5 % Consumer Defensive 7.87 AAA NA 250 % Healthcare 10.30 AA NA 0 % Industrials 13.57 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 5.39 BBB NA % Technology 15.43 BB NA 2 200 5th to 25th Percentile 25th to Median % Energy 6.68 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 10.53 Below B NA Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD % Utilities 5.48 NR/NA NA 150 Turnover Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years LinkedIn Corp 0.68% 1 100 Vanguard Mid Cap Index Adm 7.67 24.43 27.95 17.13 13.17 Macy's Inc 0.68% CRSP US Mid Cap TR USD 7.71 24.53 28.08 17.30 12.66 Delta Air Lines Inc 0.66% Universe(5%) 10.72 31.12 34.37 20.30 15.07 Health Care REIT, Inc. 0.66% 50 Universe(25%) 8.70 25.60 30.04 17.86 12.90 Vertex Pharmaceuticals 0.64% Universe(Median) 7.50 23.12 27.27 16.50 12.15 Actavis Inc 0.62% Universe(75%) 6.58 20.84 24.09 14.82 10.01 AvalonBay Communities Inc 0.61% Universe(95%) 4.42 16.36 18.12 9.86 6.41 Delphi Automotive PLC 0.61% 0 0 Cabot Oil & Gas Corporation Class A 0.58% Prospectus Exp Ratio Turnover Ratio W.W. Grainger, Inc. 0.56% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 35

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Mid Cap Index Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 40 50 Total Return, % 20 75 0 100 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 Index Adm CRSP US Mid Cap TR USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Mid Cap Index Adm 34.24 20.42 14.04 13.69 6.17 -41.78 40.48 25.59 -1.97 15.99 100 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 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 3 2 20 9 0 0 25 50 75 100 125 150 175 200 225 2 18 8 Down Mkt Capture Ratio, % 1 16 7 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm Total Annualized StdDev, % Excess Annualized StdDev, % 0 14 6 CRSP US Mid Cap TR USD -1 12 Sharpe Ratio 5 Alpha, % -2 1 10 4 -3 8 Return vs. Risk 3 -4 6 Oct-10 - Sep-13 2 30 -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 Index Adm CRSP US Mid Cap TR USD 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Mid Cap Index Adm -0.64 1.03 99.78 1.13 14.88 0.85 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 0 5 10 15 20 25 30 35 Universe(25%) 0.57 1.12 97.49 1.16 16.39 5.53 Total Annualized StdDev, % Universe(Median) -1.17 1.07 95.23 1.08 15.53 3.75 Universe(75%) -3.17 0.95 91.87 0.97 14.53 2.76 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm 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 Other Postemployment Benefit (OPEB) GASB 45 36

Quarterly Investment Monitor Data as of 09/30/2013 Target Small Capitalization Value T 6.20 1.89 Portfolio Information Investment Strategy Summary % Cash Ticker TASVX % US Stocks Morningstar Category Small Value % Bonds The investment seeks above-average capital appreciation. The Portfolio seeks investments Avg Mkt Cap $MM 2156.13 % Non-US Stocks that will increase in value. It normally invests at least 80% of its investable assets in Cat Med Mkt Cap $MM 1928.09 common stocks of small companies. Small companies are those companies with market % Pref Net Assets $MM 1664.26 capitalizations comparable to those in the Russell 2000 Value Index. As of December 31, % Conv Turnover Ratio 37.00 2012, the Russell 2000 Value Index median market capitalization was approximately $472 % Other % Assets in Top 10 Holdings 8.85 million and the largest company by market capitalization was $4.664 billion. Market % Non-US Bonds Total Number of Holdings 669.00 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 Portfolio Region Portfolio Structure Phone Number 800-225-1852 Performance vs. Peer Group % 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 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 200 10 % Basic Materials 5.80 Avg Eff Duration NA % 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 0 % Industrials 23.63 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 4.87 BBB NA 140 % Technology 12.84 BB NA 5th to 25th Percentile 25th to Median % Energy 6.45 B NA Prospectus Exp Ratio 120 Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 21.23 Below B NA Target Small Capitalization Value T S&P 600 Value % Utilities 3.43 NR/NA NA 1 100 Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Bristow Group, Inc. 1.20% 60 Target Small Capitalization Value T 8.43 24.88 29.57 17.20 11.59 Hexcel Corporation 0.95% S&P 600 Value 9.53 27.71 31.78 19.97 11.48 Aaron's, Inc. 0.94% 40 Universe(5%) 10.95 30.05 37.11 20.84 16.87 Protective Life Corp 0.94% 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 Universe(75%) 7.31 22.24 26.79 15.54 10.08 Firstmerit Corp 0.80% Universe(95%) 4.62 17.65 22.07 11.43 8.63 Group 1 Automotive Inc 0.79% 0 0 Raymond James Financial Inc 0.78% Prospectus Exp Ratio Turnover Ratio GATX Corp 0.76% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 0 20 40 60 80 100 120 140 160 20 9 2 Down Mkt Capture Ratio, % 18 8 1 Morningstar SmallCap Value Universe Target Small Capitalization Value T Excess Annualized StdDev, % 16 Total Annualized StdDev, % 7 0 S&P 600 Value 14 6 Sharpe Ratio -1 Alpha, % 12 1 5 -2 10 4 Return vs. Risk 8 -3 3 Oct-10 - Sep-13 6 -4 30 4 2 -5 1 25 Total Annualized Return, % 2 -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 0 5 10 15 20 25 Universe(25%) -0.50 1.05 96.82 1.10 17.90 5.10 Total Annualized StdDev, % Universe(Median) -1.89 0.95 95.39 1.03 16.39 4.17 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 Other Postemployment Benefit (OPEB) GASB 45 38

Quarterly Investment Monitor Data as of 09/30/2013 American Funds New Perspective R6 3.73 1.72 Portfolio Information Investment Strategy Summary % Cash Ticker RNPGX 44.16 % US Stocks Morningstar Category World Stock % Bonds The investment seeks long-term growth of capital; future income is a secondary objective. Avg Mkt Cap $MM 46827.29 % Non-US Stocks The fund seeks to take advantage of investment opportunities generated by changes in Cat Med Mkt Cap $MM 37045.94 international trade patterns and economic and political relationships by investing in % Pref Net Assets $MM 48763.42 common stocks of companies located around the world. In pursuing its primary % Conv Turnover Ratio 16.00 investment objective, it invests primarily in common stocks that the investment adviser % Other % Assets in Top 10 Holdings 18.52 believes have the potential for growth. In pursuing its secondary objective, the fund % Non-US Bonds Total Number of Holdings 271.00 invests in common stocks of companies with the potential to pay dividends in the future. Manager Name Gregg E. Ireland 50.14 _______________________________________________________________________ Manager Tenure 20.84 __ Fund Incept Date 03/13/1973 Prospectus Exp Ratio 0.46 Portfolio Region Portfolio Structure Phone Number 800-421-4225 Performance vs. Peer Group % 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 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 3 180 % Basic Materials 5.54 Avg Eff Duration NA % Communication Services 3.59 Effective Maturity NA % Consumer Cyclical 18.42 Avg Credit Quality NA 0 160 % Consumer Defensive 11.79 AAA NA % Healthcare 15.52 AA NA 140 -5 % Industrials 11.65 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.16 BBB NA % Technology 12.57 BB NA 2 120 5th to 25th Percentile 25th to Median % Energy 5.70 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 14.74 Below B NA 100 American Funds New Perspective R6 MSCI AC World Index ND USD % Utilities 0.33 NR/NA NA Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Novo Nordisk A/S 3.97% 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% 20 Universe(Median) 8.29 16.65 21.36 10.98 8.25 Bayer AG 1.46% Universe(75%) 6.55 12.89 15.69 8.82 6.72 CME Group, Inc. Class A 1.41% Universe(95%) 3.55 -1.47 4.25 2.40 3.16 Taiwan Semiconductor Manufacturing Co Ltd 1.41% 0 0 American Express Co 1.27% Prospectus Exp Ratio Turnover Ratio ACE Ltd 1.20% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 25 Total Return Rank, % 40 50 20 Total Return, % 75 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-13 140 -60 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, % American Funds New Perspective R6 MSCI AC World Index ND USD 100 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 0 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 6 2 20 12 -20 0 20 40 60 80 100 120 140 160 180 200 18 4 Down Mkt Capture Ratio, % 10 16 2 Morningstar World Stock Universe American Funds New Perspective R6 Total Annualized StdDev, % Excess Annualized StdDev, % 14 8 MSCI AC World Index ND USD 0 12 Alpha, % Sharpe Ratio -2 1 10 6 8 Return vs. Risk -4 4 6 Oct-10 - Sep-13 -6 25 4 2 -8 20 2 Total Annualized Return, % 15 -10 0 0 0 10 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile American Funds New Perspective R6 MSCI AC World Index ND USD 5 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 -10 American Funds New Perspective R6 2.83 0.94 97.12 0.92 14.08 2.53 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 0 5 10 15 20 25 30 35 Universe(25%) 3.45 1.09 95.18 0.93 16.74 6.92 Total Annualized StdDev, % Universe(Median) 1.38 1.01 92.35 0.79 15.43 5.03 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 Other Postemployment Benefit (OPEB) GASB 45 40

Quarterly Investment Monitor Data as of 09/30/2013 Harding Loevner Global Equity Inst 2.34 Portfolio Information Investment Strategy Summary % Cash Ticker HLMVX % US Stocks Morningstar Category World Stock % Bonds The investment seeks long-term capital appreciation. The fund invests in companies based 55.13 Avg Mkt Cap $MM 34509.06 % Non-US Stocks in the U.S. and other developed markets, as well as in emerging and frontier markets. It Cat Med Mkt Cap $MM 37045.94 invests at least 80% of net assets in common stocks, preferred stock, rights and warrants % Pref Net Assets $MM 602.34 issued by companies that are based both inside and outside the United States, securities % Conv Turnover Ratio 32.00 convertible into such securities and investment companies that invest in the types of % Other % Assets in Top 10 Holdings 28.13 securities in which the fund would normally invest. The fund normally holds 35-75 41.69 % Non-US Bonds Total Number of Holdings 67.00 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 Portfolio Region Portfolio Structure Phone Number 877-435-8105 Performance vs. Peer Group % 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 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 3 180 % Basic Materials 6.77 Avg Eff Duration NA % Communication Services 2.44 Effective Maturity NA % Consumer Cyclical 12.54 Avg Credit Quality NA 0 160 % Consumer Defensive 11.83 AAA NA % Healthcare 6.75 AA NA 140 -5 % Industrials 7.78 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 27.03 BB NA 2 120 5th to 25th Percentile 25th to Median % Energy 5.80 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 19.06 Below B NA 100 Harding Loevner Global Equity Inst MSCI AC World Index ND USD % Utilities 0.00 NR/NA NA Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings Months Date Year Years Years Wells Fargo & Co 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% 20 Universe(Median) 8.29 16.65 21.36 10.98 8.25 Coach, Inc. 2.54% Universe(75%) 6.55 12.89 15.69 8.82 6.72 Schlumberger NV 2.44% Universe(95%) 3.55 -1.47 4.25 2.40 3.16 Unicharm Corp 2.44% 0 0 Dassault Systemes SA 2.28% Prospectus Exp Ratio Turnover Ratio JPMorgan Chase & Co 2.21% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 25 Total Return Rank, % 40 50 20 Total Return, % 75 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-13 140 -60 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, % Harding Loevner Global Equity Inst MSCI AC World Index ND USD 100 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 0 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 6 2 20 12 -20 0 20 40 60 80 100 120 140 160 180 200 18 4 Down Mkt Capture Ratio, % 10 16 2 Morningstar World Stock Universe Harding Loevner Global Equity Inst Total Annualized StdDev, % Excess Annualized StdDev, % 14 8 MSCI AC World Index ND USD 0 12 Alpha, % Sharpe Ratio -2 1 10 6 8 Return vs. Risk -4 4 6 Oct-10 - Sep-13 -6 25 4 2 -8 20 2 Total Annualized Return, % 15 -10 0 0 0 10 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Harding Loevner Global Equity Inst MSCI AC World Index ND USD 5 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 -10 Harding Loevner Global Equity Inst 0.25 0.94 93.26 0.72 14.34 3.82 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 0 5 10 15 20 25 30 35 Universe(25%) 3.45 1.09 95.18 0.93 16.74 6.92 Total Annualized StdDev, % Universe(Median) 1.38 1.01 92.35 0.79 15.43 5.03 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 Other Postemployment Benefit (OPEB) GASB 45 42

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard Emerging Mkts Stock Idx I 1.89 Portfolio Information Investment Strategy Summary % Cash Ticker VEMIX % US Stocks Morningstar Category Diversified Emerging Mkts % Bonds The investment seeks to track the performance of a benchmark index that measures the Avg Mkt Cap $MM 17565.76 % Non-US Stocks investment return of stocks issued by companies located in emerging market countries. Cat Med Mkt Cap $MM 18214.07 The fund employs an indexing investment approach by investing substantially all % Pref Net Assets $MM 65717.91 (approximately 95%) of its assets in the common stocks included in the FTSE Emerging % Conv Turnover Ratio 8.00 Index, while employing a form of sampling to reduce risk. The FTSE Emerging Index % Other % Assets in Top 10 Holdings 13.34 includes approximately 851 common stocks of companies located in emerging markets % Non-US Bonds 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 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % 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 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -4 3 180 % Basic Materials 9.70 Avg Eff Duration NA % 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 -10 % Industrials 5.84 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 2.50 BBB NA % Technology 11.30 BB NA 2 120 5th to 25th Percentile 25th to Median % Energy 11.39 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 26.38 Below B NA 100 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD % Utilities 3.77 NR/NA NA Turnover 80 Performance 3 Year to 1 3 5 Top Ten Holdings 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% 20 Universe(Median) 5.64 -4.62 2.05 -0.65 6.09 Taiwan Semiconductor Manufacturing Co Ltd 1.23% Universe(75%) 3.64 -6.29 -0.33 -2.02 4.87 America Movil, S.A.B. de C.V. 1.12% Universe(95%) -0.30 -8.93 -6.05 -7.23 0.81 Naspers Ltd 1.07% 0 0 Bank Of China Ltd. H Shares 1.03% Prospectus Exp Ratio Turnover Ratio Mtn Group Limited 1.03% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 -60 Oct-10 - Sep-13 225 -80 200 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Up Mkt Capture Ratio, % 175 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 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 25 9 0 0 20 40 60 80 100 120 140 160 180 200 4 8 Down Mkt Capture Ratio, % 3 0.2 20 7 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Excess Annualized StdDev, % 2 Total Annualized StdDev, % 0.1 6 FTSE Emerging NR USD 1 15 Sharpe Ratio 5 Alpha, % 0 0.0 -1 4 10 Return vs. Risk -2 -0.1 3 Oct-10 - Sep-13 -3 2 6 5 -4 -0.2 4 1 Total Annualized Return, % -5 2 -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 0 5 10 15 20 25 30 35 40 45 Universe(25%) 1.97 1.03 95.69 0.14 20.59 5.82 Total Annualized StdDev, % Universe(Median) 0.56 0.99 94.15 0.06 19.65 4.88 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 Other Postemployment Benefit (OPEB) GASB 45 44

Quarterly Investment Monitor Data as of 09/30/2013 Vanguard REIT Index I 1.08 Portfolio Information Investment Strategy Summary % Cash Ticker VGSNX % US Stocks Morningstar Category Real Estate % Bonds The investment seeks to provide a high level of income and moderate long-term capital Avg Mkt Cap $MM 8261.38 % Non-US Stocks appreciation by tracking the performance of a benchmark index that measures the Cat Med Mkt Cap $MM 9821.37 performance of publicly traded equity REITs. The fund employs an indexing investment % Pref Net Assets $MM 33431.17 approach designed to track the performance of the MSCI US REIT Index. The index is % Conv Turnover Ratio 9.00 composed of stocks of publicly traded equity real estate investment trusts (known as % Other % Assets in Top 10 Holdings 41.64 REITs). The fund attempts to replicate the index by investing all, or substantially all, of its % Non-US Bonds Total Number of Holdings 134.00 assets in the stocks that make up the index, holding each stock in approximately the same Manager Name Gerard C. O'Reilly proportion as its weighting in the index. Manager Tenure 17.39 98.92 _______________________________________________________________________ Fund Incept Date 05/13/1996 __ Prospectus Exp Ratio 0.08 Portfolio Region Portfolio Structure Phone Number 800-662-7447 Performance vs. Peer Group % United States 100.00 % Cash 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 4 % Asia - Emerging 0.00 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 140 % Basic Materials 0.00 Avg Eff Duration NA 0 % Communication Services 0.00 Effective Maturity NA % Consumer Cyclical 0.00 Avg Credit Quality NA -2 % Consumer Defensive 0.00 AAA NA 120 % Healthcare 0.00 AA NA -4 % Industrials 1.23 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 98.77 BBB NA 100 % Technology 0.00 BB NA 5th to 25th Percentile 25th to Median % Energy 0.00 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Financial Services 0.00 Below B NA 80 Vanguard REIT Index I MSCI US REIT NR USD % Utilities 0.00 NR/NA NA 1 Turnover 60 Performance 3 Year to 1 3 5 Top Ten Holdings 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% Universe(75%) -3.11 1.48 3.68 10.54 4.52 Health Care REIT, Inc. 3.51% Universe(95%) -3.63 0.18 2.57 8.77 2.78 AvalonBay Communities Inc 3.22% 0 0 Boston Properties Inc 3.14% Prospectus Exp Ratio Turnover Ratio Vornado Realty Trust 2.76% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 -40 Oct-10 - Sep-13 160 -50 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 REIT Index I MSCI US REIT NR USD 120 100 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 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 1.0 20 12 0 0 20 40 60 80 100 120 140 160 0.9 18 Down Mkt Capture Ratio, % 10 2 0.8 16 Morningstar Real Estate Universe Vanguard REIT Index I Total Annualized StdDev, % Excess Annualized StdDev, % 0.7 14 8 MSCI US REIT NR USD 1 0.6 12 Alpha, % Sharpe Ratio 0.5 10 6 0 0.4 8 Return vs. Risk 4 0.3 6 Oct-10 - Sep-13 18 -1 0.2 4 2 16 0.1 2 Total Annualized Return, % 14 -2 0.0 0 0 12 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard REIT Index I MSCI US REIT NR USD 10 8 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 6 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 4 Vanguard REIT Index I 1.15 1.00 99.98 0.78 16.55 0.21 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 0 5 10 15 20 25 Universe(25%) 0.91 1.01 99.44 0.76 16.91 2.45 Total Annualized StdDev, % Universe(Median) 0.44 0.98 99.02 0.73 16.47 1.70 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 Other Postemployment Benefit (OPEB) GASB 45 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 measured The aggregate assets, expressed as a percentage, of the fund's top 10 portfolio holdings. This figure is meant to be a measure of portfolio risk. by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative alpha Specifically, the higher the percentage, the more concentrated the fund is in a few companies or issues, and the more the fund is susceptible to indicates the portfolio has underperformed, given the expectations established by beta. the market fluctuations in these few holdings. The figure is calculated from the most recent available fund holdings. Average Effective Duration Price/Book Ratio TTM A measure of a fund's interest-rate sensitivity--the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. The weighted average of the price/book ratios of all the stocks in a fund’s portfolio. The P/B ratio of a company is calculated by dividing the Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while market price of its stock by the company’s per-share book value. Stocks with negative book values are excluded from this calculation. In theory, shorter maturities and higher coupons shorten duration. The relationship between funds with different durations is straightforward: A fund a high P/B ratio indicates that the price of the stock exceeds the actual worth of the company's assets, while a low P/B ratio indicates that the with a duration of 10 years is twice as volatile as a fund with a five-year duration. Morningstar prints an average effective duration statistic stock is a bargain. that incorporates call, put, and prepayment possibilities. Price/Earnings Ratio TTM Average Effective Maturity The weighted average of the price/earnings ratios of the stocks in a fund’s portfolio. The P/E ratio of a stock is calculated by dividing the current Average effective maturity is a weighted average of all the effective maturities of the bonds in a portfolio. Effective maturity takes into price of the stock by its trailing 12 months’ earnings per share. In computing the average, Morningstar weights each portfolio holding by the consideration mortgage prepayments, puts, calls, adjustable coupons, and other features of individual bonds and is thus a more accurate percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund’s final P/E. measure of interest-rate sensitivity. Longer-maturity funds are generally considered more interest-rate sensitive than their shorter counterparts. R-Squared Beta Reflects the percentage of a fund’s movements that can be explained by movements in its benchmark index. An R-squared of 100 indicates that all movements of a fund can be explained by movements in the index. Thus, index funds that invest only in S&P 500 stocks will have an A measure of a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. Morningstar calculates beta by R-squared very close to 100. Conversely, a low R-squared indicates that very few of the fund’s movements can be explained by movements in its comparing a fund’s excess return over Treasury bills to the market's excess return over Treasury bills, so a beta of 1.10 shows that the benchmark index. An R-squared measure of 35, for example, means that only 35% of the fund’s movements can be explained by movements in fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other factors the benchmark index. remain constant. Conversely, a beta of 0.85 indicates that the fund’s excess return is expected to perform 15% worse than the market’s excess return during up markets and 15% better during down markets. Sharpe Ratio The Morningstar Rating The Sharpe Ratio is a risk-adjusted measure developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the portfolio’s historical risk-adjusted performance. It Commonly called the Star Rating, is a measure of a fund's risk-adjusted return, relative to funds in its category. Funds are rated from one can be used to compare two portfolios directly on how much excess return each portfolio achieved for a certain level of risk. to five stars, with the best performers receiving five stars and the worst performers receiving a single star. Standard Deviation Risk-adjusted return is calculated by subtracting a risk penalty from each fund total return, after accounting for all loads, sales charges, and redemption fees. The risk penalty is determined by the amount of variation in the fund's monthly return, with emphasis on downward Standard deviation is the statistical measurement of dispersion about an average, which depicts how widely a stock or portfolio’s returns varied variation. The greater the variation, the larger the penalty. Funds are ranked within their categories and stars are assigned as follows: Top over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that is most 10% five stars; Next 22.5% four stars; Middle 35% three stars; Next 22.5% two stars; Bottom 10% one star. likely for a given investment. When a stock or portfolio has a high standard deviation, the predicted range of performance is wide, implying greater volatility. Audited Expense Ratio Total Number of Holdings The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV . Sales charges are not The total number of different holdings of a fund. This figure is meant to be a measure of portfolio risk. Specifically, the lower the figure, the more included in the expense ratio. concentrated the fund is in a few companies or issues, and the more the fund is susceptible to the market fluctuations in these few holdings. This figure also provides a context for the importance of % assets in top 10 holdings. The figure is calculated from the most recent available fund Geometric Average Market Capitalization holdings. It does not include a fund’s short positions. Morningstar defines the overall "size" of a stock fund's portfolio as the geometric mean of the market capitalization for all of the stocks it Total Return owns. It's calculated by raising the market capitalization of each stock to a power equal to that stock's stake in the portfolio. The resulting numbers are multiplied together to produce the geometric mean of the market caps of the stocks in the portfolio, which is reported as Expressed in percentage terms, Morningstar’s calculation of total return is determined each month by taking the change in monthly net asset average market capitalization. value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAV. Reinvestments are made using This number is different from the fund's median market cap--the capitalization of the median stock in its portfolio. The geometric mean the actual reinvestment NAV, and daily payoffs are reinvested monthly. better identifies the portfolio's "center of gravity." That is, it provides more accurate insight into how market trends (as defined by capitalization) might affect the portfolio. Turnover Ratio Net Assets This is a measure of the fund’s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily suggest that The month-end net assets of the mutual fund, recorded in millions of dollars. Net-asset figures are useful in gauging a fund’s size, agility, all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio’s and popularity. They help determine whether a small company fund, for example, can remain in its investment-objective category if its holdings that have changed over the past year. asset base reaches an ungainly size. 12-Month Yield Also known as a distribution yield, Morningstar computes this figure by summing the trailing 12-month’s income distributions and dividing the sum by the last month’s ending NAV, plus any capital gains distributed over the same period. Income refers only to interest payments from fixed-income securities and dividend payoffs from common stocks. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 47

Quarterly Investment Monitor Data as of 09/30/2013 Disclaimer This Milliman work product was prepared solely for the internal business use of City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45. Milliman's work may not be provided to third parties without Milliman's prior written consent. The analysis in this report was prepared utilizing data from third parties and other sources including but not limited to internal computer software and databases. Reasonable care has been taken to assure the accuracy of the data contained herein, and comments are objectively stated and are based on facts gathered in good faith. These reports do not constitute investment advice with respect to the sale or disposition of individual securities. Unless explicitly stated in your Service Agreement, there should be no reliance on Milliman services to provide analysis or reporting on a daily basis, the changes to manager rankings, ratings or opinions thereon and are not intended to monitor investment manager compliance with individual security selection criteria, limits on security selection, and/or prohibitions to the holding of certain securities or security types. The One Year, Three Year, Five Year, and Ten Year rates of return are time-weighted annual rates. The One Month, Three Month, and Year to Date rates of return are rates for the period indicated. All returns include fund internal expenses, except sales charges, if any. The rates of return shown are for the mutual funds in which the retirement program participates, not for the plan specifically. Returns credited to individual accounts will vary due to the timing of contributions, transfers, and withdrawals. Past performance is no guarantee of future results. Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request. Milliman disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 48