Attachment

CIVILIAN PENSION BOARD AGENDA MAY 9, 2013 - 2:00 P.M. CITY HALL CONFERENCE ROOM 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Adoption of Minutes - Civilian Pension Board Meeting of February 14, 2013 Special Civilian Pension Board Meeting of March 25, 2013 2. Quarterly Performance Review (Quarter Ending March 31, 2013) (Milliman, Inc.) (Staff Recommends Acceptance of the Report) 3. Discussion - Audit of the General Employees’ Pension Fund 4. Adjournment TO ASSURE THAT THERE WILL BE A QUORUM, PLEASE RSVP BY CONTACTING THE CITY CLERK’S OFFICE BY EMAIL AT CITYCLERK@DOVER.DE.US OR BY CALLING 736-7008 AS SOON AS POSSIBLE. /js S:\AGENDAS-MINUTES-PACKETS\Misc-Agendas\PENSION BOARDS\2013\05-09-2013 CIVIILAN PENSION BOARD AGENDA.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

CIVILIAN PENSION BOARD The Civilian Pension Board meeting was held on February 14, 2013 at 2:00 p.m. with Chairman Bonar presiding. Members present were Councilman Lynn (departed at 2:59 p.m.), Mr. Blakeman, Mr. Koenig, and Mrs. Mitchell. Mr. Clendaniel and Mrs. Hettinger were absent. Council President Leary was also present. AGENDA ADDITIONS/DELETIONS Mr. Blakeman stated that, as a point of order, the agenda was not correct. He read a statement into the record as follows: The agenda is not correct. A. Action was taken by the Board to discuss a cost-of-living increase for current retirees and beneficiaries in January of each year. This occurred on January 16, 2008; March 13, 2009; February 9, 2011; and February 8, 2012. The action was taken on January 19, 1988. Mr. Walters moved that the question of retiree increases be an automatic agenda item during the month of January for annual review for consideration of possible increase for retirees of the Civilian Pension Plan. The motion was seconded by Mrs. Marvel and carried with Mr. Hudson voting no (Mr. Levitt absent). B. The Chair was provided with a request for agenda items dated January 2, 2013, which was hand delivered to the City Clerk’s Office. Three (3) of the four (4) items are present on today’s agenda. The fourth item, “Discussion of Cost-of-Living Increase for the 2013/2014 Budget” is not. It is my understanding that a request for agenda items made by a member of the Board is to be honored by the Chair. For both of these reasons, the agenda is not correct. It is my opinion that this meeting must be adjourned until such time as a new agenda can be published in accordance with the Freedom of Information Act (FOIA) and a new meeting scheduled as soon as possible thereafter. Mr. Bonar deferred to Mr. William Pepper, Deputy City Solicitor. Mr. Pepper stated that if an item was not on the agenda, it could not be discussed. He was unsure what the internal process was for having items listed on the agenda; however, he stated that the agenda could not be amended at this point. Mr. Leary explained that it was customary to add items to the agenda only if there was an emergency.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 2 Addressing Mr. Pepper, Mr. Blakeman inquired, since the Board had taken action to require an item to be placed on the agenda every year and failed to include it on this agenda, if the meeting could proceed without correcting this omission. Responding, Mr. Pepper stated that the meeting could take place because the posted agenda would govern the actions to be taken by the Board at this meeting. Mr. Blakeman questioned if the previous action of the Board could be violated. Mr. Pepper stated that the items placed on the agenda are, to some extent, within the control of the chair of the body. Mr. Blakeman questioned if the vote of the Board was not binding or could be ignored. Mr. Pepper stated that there may be other remedies for this issue; however, adding this item to the agenda today was not one of them. Mr. Blakeman believed that, for this reason, the meeting should be adjourned until a new agenda could be created. Mr. Leary stated that the agenda had been published in advance and opportunity had been provided to review it. Mr. Blakeman moved that the meeting be adjourned. The motion failed for lack of a second. Mr. Bonar felt that this item did not constitute an emergency; therefore, he stated that the agenda would be followed as published. Adoption of Minutes - Civilian Pension Board Meeting of November 8, 2012 Mr. Koenig moved for adoption of the Civilian Pension Board Minutes of November 8, 2012, seconded by Mrs. Mitchell and unanimously carried. Quarterly Performance Review (Quarter Ending December 31, 2012) (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, Milliman, Inc., reviewed the Quarterly Investment Monitor Summary Report for the Quarter Ending December 31, 2012. He advised members that assets in the plan totaled approximately $24.61M, with withdrawals for the quarter totaling approximately $870,000 and contributions $184,000. He reminded members that studies of the investment funds were completed during the Summer of 2012 and reallocation of the plan and adjustment of the investments had taken effect during November. He explained that the return for the plan was approximately 1.39% for the quarter versus the index of 1.16%; therefore, the plan had exceeded the index. Referring to Page 9 of the report, Mr. Marzinsky explained that the $0 amounts in the chart reflected new investments that had been added. He stated that Milliman, Inc. would review the allocations when its capital market assumptions are released and may make slight adjustments if needed to hit the target return expectation for the overall plan, but he did not foresee any major changes.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 3 In reviewing the Investment Policy Review - Active Management on Page 10, Mr. Marzinsky noted that investments were ranked against their peers and against the indexes. Information regarding relative risk (standard deviation) and measures of manager effectiveness (Alpha and Sharpe) were also included. He noted some underperformance compared to indexes; however, ranks to peers were strong. He did not see any major concerns in regard to the actively managed investments and no adjustments to fund managers were recommended. Referring to Page 11, Investment Policy Review - Passive Management, Mr. Marzinsky stated that index funds were performing well. He stated that the goal was for Beta to be approximately 1.0 and Tracking Error to be fairly low. In regard to the overall performance of the plan reflected on Page 12 of the report (Investment Option Return Summary), Mr. Marzinsky stated that over the last three (3) months, the plan had a better gross and net return than the index. Although the return trailed the index slightly over the last year, he felt that a 9% return for the year was good, noting that this was higher than the actuarial rate of return (6% - 7%). Since the assets grew more than the liabilities of the plan, positive headway was being made in the overall funded status of the plan. Mr. Marzinsky was optimistic about the markets in the future, noting that many good indicators were being seen both nationally and internationally for equity markets. He indicated that as investors pull money out of fixed income to invest in equities, he anticipated some “drag” on the bond investments and this would be monitored. Noting that the return at the end of the last quarter was approximately $365,000 lower than the balance at the end of the previous quarter (previously $24.9M and currently $24.6), Mr. Blakeman inquired if this was related to the addition of six (6) new funds. Responding, Mr. Marzinsky explained that trust statements from Wells Fargo sometimes reflect activity that occurs after the end of a month or quarter. He noted that there were capital gains and interest payments that were targeted for December 31, 2012 but actually occurred in January, so this could have created some differences in the balances. Freedom of Information Act (FOIA) Training Session Deputy City Solicitor William Pepper advised members that anything he said this afternoon was without prejudice to any position that he had heretofore taken on behalf of any client. He reviewed Title 29, Chapter 100. Freedom of Information Act (FOIA), State Code. Mr. Pepper stated that FOIA applies to public bodies and that, as a group of seven (7) members, the Civilian Pension Board was such a body and that a smaller group of Board members may also be a public body. He indicated that included within the definition of public body are groups such as ad hoc committees, special committees, temporary committees, groups, and panels. He informed members that it was unclear how these terms are defined, noting that an ad hoc committee “could mean almost anything” and its definition was a point of contention. Mr. Pepper stated that public business is broadly construed; therefore, if it is “something in your wheelhouse,” it is public business. He explained that FOIA defines “meeting” as “a formal or informal gathering of a quorum of the members of any public body for the purpose of discussing or taking action on public business, either in person or by video conferencing;” however, he had been told that meetings are more broadly defined than this. He explained that, 20 years ago, the Attorney General’s Office had stated that a series of meetings, held at the home of former Mayor Crawford Carroll with two (2) or three (3) members of Council,

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 4 were illegal under FOIA. On another occasion, the Kent County Comprehensive Plan Working Group met with Levy Court Commissioners two (2) or three (3) at a time to educate them on the progress of the project (without the knowledge of the County Attorney) and a FOIA complaint was filed. It was argued that this was not a meeting because there was never a quorum of Commissioners in the room at the same time and information was flowing only one (1) way, with no backflow from the Commissioners. This argument was not litigated because no remedy was imposed. Mr. Pepper stated that in the context of a public body, public business, and public meeting, these incidents illustrate that it may be okay for three (3) members to assemble, but if one (1) of those three (3) talks to a fourth, FOIA has probably been violated. He advised members not to do this or to consult him first. He explained that the FOIA provisions are analagous to a no-contact provision of a bail order. Mr. Pepper informed members that even though the law refers to meetings “in person or by video conferencing,” email and telephone calls were probably also included. He explained that such violations adversely affect public relations. He stressed that when he communicates with members of a local government, he may send communications to all members of a committee but he instructs them to never use the “reply all” button and to reply only to him. In terms of preparing agendas, Mr. Pepper reminded members that meeting notices must be posted seven (7) days prior to a meeting. The agenda is usually posted at the same time and if not, an explanation should be given as to why it was not posted. He stated that he takes the position that agenda items could be added up to six (6) hours prior to the meeting. The only exception would be if an emergency circumstance came up during the meeting, and he could not conceive of an emergency circumstance that would arise for the Civilian Pension Board that would require an addition to the agenda. Mr. Blakeman inquired if an item could be added to the agenda six (6) hours prior to the meeting if the agenda had already been published. Responding, Mr. Pepper stated that any change to the agenda must be posted at least six (6) hours prior to the meeting. The amended agenda would then be posted and would explain why the item was added. In regard to open meetings, Mr. Pepper explained that meetings are open to the public unless one (1) of nine (9) exceptions apply. In reviewing these exceptions, he stated that he was not sure that any of them would apply to the function of the Civilian Pension Board, with the unlikely possible exception of a strategy session in the event of a lawsuit, and in this case an executive session could be held only if the attorney were present and only if it would adversely affect the Board’s litigation position. Mr. Pepper advised members that there is a specific procedure that must be followed to hold an executive session closed to the public, including making a motion and stating the reason for the executive session. He stated that, as a general rule, Civilian Pension Board meetings should all be open and that legal advice should be sought before attempting to hold a closed session. Mr. Blakeman stated that he would consult the City Clerk’s Office in the future regarding FOIA matters. Responding, Mr. Leary acknowledged that the provisions of FOIA can be difficult and suggested that Mr. Blakeman rely on the City Clerk’s Office for guidance in this regard.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 5 Data Request (Received During the Civilian Pension Board Meeting of November 8, 2012) Members reviewed the Data Request received during the Civilian Pension Board Meeting of November 8, 2012, as follows: A. List of Each Investment by Name, Type, Numbers of Instruments (Bonds, Stocks, Certificates, Etc.) and the Value of Each at the End of the Reporting Quarter Mrs. Donna Mitchell, Controller/Treasurer, explained that individual stocks are embedded in mutual funds and it is possible to go online and look up mutual funds; however, it would be too onerous to include this information in an individual report. She noted that the ticker symbols were included in the quarterly performance report provided by Milliman, Inc. Responding, Mr. Blakeman stated that he was completely satisfied in this regard. B. Cash on Hand at the End of the Reporting Quarter and Who is Holding the Cash and How Much Each is Holding (City of Dover, Wells Fargo, Others) Mrs. Mitchell stated that, in the past, a quarterly report had been provided; however, since the Finance Department was understaffed, it had been difficult to continue; however, staff had been requested to get this report back on track. Mrs. Mitchell explained that a report had been created but had not yet been sent to members and that the additions, deductions, and the beginning and ending cash balance were included. She cautioned members that the figures provided in this report would not agree with Milliman’s figures because the report was prepared on a cost/cash basis as opposed to market value, and there would be accrued dividends at the end of each quarter. She stated that the report would be forwarded to members and suggested that they review the information to see if it was satisfactory and inform staff if additional information was needed. (Clerk’s Office Note: A Schedule of Changes in Pension Trust Fund Net Assets for the Civilian Pension Trust was subsequently provided to members.) C. Value of Checks Written Each Quarter (Pensions, Expenses, Pension Refunds, Etc.) Mrs. Mitchell stated that this information was included in the report discussed under the previous agenda item. D. Itemized List of General Expenses for Each Quarter Mrs. Mitchell explained that the total general administration expenses were included in the report to be sent to members (Item #B above); however, an itemized list by vendor was not included. She stated that she could provide information regarding what the expenses consist of, e.g., Milliman fees, Wells Fargo, etc., and Mr. Blakeman expressed his concurrence. E. List of Each Person Receiving a Pension Check at the End of the Quarter by Name, Amount of Check, and Retirement (Year, Month, Day) Listed in Alphabetical Order by Last Name Noting that Mr. Pepper had opined that all of this information was not relevant to the Board’s duties, Mr. Bonar requested Mr. Pepper to elaborate. Mr. Pepper stated that in examining the list of duties in the Pension Ordinance in Section 2-368 of the Dover Code, he felt that he could “draw a line” between the duties of the Pension Board and who was receiving the pension and the amount; however, he was unsure if the level of detail requested was appropriate. He cautioned members that FOIA does not require the creation of documents,

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 6 but once created, they become public record. For this reason, he advises local government clients not to create reports unless there is a need, and specifically, not to create documents pursuant to a request from the public. Mrs. Mitchell stated that she called the State to determine how such requests are handled and was told that the State Code was changed and the State does not consider this public information and no longer releases information on individual retirement payments. She indicated that this change was made in response to a request from The Wilmington News- Journal for individuals’ pension information. She noted that this change did not affect municipalities and applies only to the State Pension Plan. As a side note, Mrs. Mitchell stated that she was told that the State Board of Trustees cannot request or discuss Cost of Living Adjustments (COLAs) because this would be a conflict of interest with their fiduciary responsibility, which was to manage funds and maintain their solvency. She indicated that the State deals with COLAs through the Joint Finance Committee (legislature) during the budget hearings. To clarify, Mr. Blakeman stated his understanding that a request for a COLA increase would more appropriately be addressed to the administrative committee as opposed to being dealt with by the Pension Board. Responding, Mrs. Mitchell explained that, at the State level, if a group of retirees wish to request a COLA, they go through the Joint Finance Committee process, since that entity controls the budget. If the Joint Finance Committee requires additional information from staff, they would go to staff to determine the impact on the unfunded liabilities, etc., so that data could be gathered. Mr. Blakeman stated that at one time the City’s Pension Board approved COLAs. Mrs. Mitchell stated that the City had done this for a long time; however, her contact at the State indicated that it is not done in this way at the State due to the conflict of interest. Responding to Mr. Blakeman’s inquiry about the City’s process for approving COLAs, Mrs. Mitchell reminded members that the unfunded liability of the Pension Plan was the City’s responsibility. Mr. Blakeman stated that the elected members of the Civilian Pension Board were elected to represent participants, yet they had no way to find out who these participants were or how to contact them and he felt that this was a severe handicap. Mrs. Mitchell explained her belief that the role of the Civilian Pension Board was to oversee the management of the funds, not the individual retirees. Mr. Blakeman stated that four (4) members of the Board are appointed and three (3) are elected; therefore, he felt that the elected board members (the civilians) should represent participants. Mrs. Mitchell expressed her belief that these individuals were elected to oversee the City’s management of the funds.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 7 Mr. Bonar felt that the level of detail being provided was adequate. He stated his agreement with Mrs. Mitchell that the role of the civilian representatives was to oversee the funds and that the Legislative, Finance, and Administration Committee and City Council, in conjunction with labor negotiations, have the overall authority regarding when individuals retire, how much they receive, etc. Mr. Lynn inquired if Mr. Pepper had ever examined, from a legal perspective, the disparity between Mr. Blakeman’s and Mrs. Mitchell’s opinions regarding the role of the elected officials on the Civilian Pension Board. Responding, Mr. Pepper stated his belief that the role was to oversee the entire Pension Plan. He did not feel that the three (3) civilian members would represent a particular universe, as City Council members do. He stated he had not reflected on this matter to any great extent. Mrs. Mitchell advised members that three (3) retirees had requested her not to give out the type of information requested and she was uncomfortable distributing it. Mr. Blakeman indicated that he was at a loss to contact members of the Pension Plan to keep them informed, although he acknowledged that information could be mailed to members through the City Clerk’s Office. He stated that since he was elected to the Board, he should maintain a representational relationship with those in the Plan. Mrs. Kim Hawkins, Human Resources Director, stated that there were approximately 90 active employees in the plan and felt that these individuals should be focused on as well. (Clerk’s Office Note: The number of active employees participating in the Civilian Pension Plan totaled 138 on this date.) Mr. Blakeman mentioned that he would like the names of these individuals to be included on the list, if provided. Mr. Lynn moved to have Mr. Pepper draw up a legal memorandum on that issue to resolve the question one way or the other, seconded by Mr. Blakeman and unanimously carried (Clendaniel and Hettinger absent). Clarifying the matter to be opined upon, Mr. Pepper stated his understanding that he was being asked to opine to whom the Board members owe a duty, whether it is to the Plan or to the employees and retired participants. Mr. Bonar concurred. Mrs. Mitchell stated her understanding that the question was whether the role of the Pension Board members was to support individual plan members or to oversee the financial part of the plan. Mr. Leary stated his understanding that the issue was whether they were functioning as trustees or as elected representatives.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 8 Mr. Koenig stated his opinion that all of these descriptions were different ways of expressing the same thing. Mr. Blakeman inquired if it was the duty of a trustee to represent the people in the trust fund. Mr. Pepper explained that a trustee’s fiduciary duty is to the fund, rather than the individual members. F. List of People Added to the Pension List to Include the Following Information - Full Name, Title, City Code, Service Dates, Total Service Time, Monthly Pension Amount, Effective Date of Retirement, Lump Sump Payment Mr. Bonar noted that Mr. Pepper had opined that the level of detail did not appear to be relevant to the Board’s duties. Mr. Blakeman stated that this information was currently being received every six (6) months from the Human Resources Department and that he included this in the request in order that it would continue to be provided. Responding, Mrs. Mitchell stated that was being provided because it was requested and no legal opinion had been given. G. List of People Removed from the Pension List with the Effective Date for the End of Pension Payments Mrs. Mitchell stated that participants are typically removed when staff becomes aware that an individual has passed away through word of mouth, when a call is received, or when an obituary is noticed and staff makes adjustments accordingly. Board Members are not typically informed. Mr. Blakeman stated that sometimes members know that a participant has passed away and felt that this list could be reviewed by members to determine if staff was unaware that someone had died. Responding, Mrs. Mitchell requested that the Board Members inform staff if they became aware that a participant had passed. Mr. Blakeman explained that he receives a list of those going into the Pension Plan but had not received a list of those being removed; therefore, his list became out of date. He felt that if he could get an occasional list of active participants, this would be adequate. Mrs. Mitchell stated that she did not mind providing information and that it was not staff’s desire to hide information but that staff had many priorities. Mr. Blakeman stated that he would be willing to contact staff occasionally to request information rather than requiring regular provision. H. Method Used to Remove Pensioners from the Pension Payment List (How Do You Receive Notification of Death) Mrs. Mitchell stated that this is accomplished when staff is notified through word of mouth, an obituary, or a call from a family member of a participant’s passing and that there is no specific policy.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 9 Responding to Mr. Pepper regarding the method used to issue pension payments, Mrs. Mitchell explained that this was accomplished through direct deposit. Mr. Leary explained that collecting payments made to a deceased individual would constitute fraud. Mr. Blakeman stated it was his intent to determine if something should be done, perhaps engage an agency, to determine if participants had died. Mr. Lynn explained that the Social Security Administration maintains a Social Security Death Index. Mr. Bonar stated his belief that the Social Security Index may not be totally accurate, noting his parents were not on this list, although they had passed away many years ago. I. Method and Schedule for Verification of Pension List For clarification, Mr. Leary inquired if it was Mr. Blakeman’s intent that the active participant list be cross referenced with the death list. Responding, Mr. Blakeman felt that this was a big hole that should be addressed somehow. Mr. Blakeman requested that a list be provided annually to the Board of all the pension checks going out, without names if necessary. Mrs. Mitchell stated that names would be required in order to verify the pension list. J. Audit Schedule and Copy of Last Audit as well as Copies of All Future Audits for the City of Dover General Employees’ Pension Plan Mrs. Mitchell explained that this information is included in the Comprehensive Annual Financial Report (CAFR), which is a public document on the City’s website. Mr. Blakeman stated that the City’s annual audit would only include those funds that are transferred from the City to the General Employees’ Pension Plan and that funds being managed by other entities are not included. Mrs. Mitchell explained that the auditors of the City’s accounts audit receipts and disbursements in the Pension Plan through the City’s records but do not audit mutual funds or funds that go in and out of Wells Fargo, since that would be covered under Wells Fargo’s audit. She noted that the fees for a separate audit of the Plan funds would have to be paid from the Civilian Pension Plan fund. Mr. Blakeman felt that most pension plans are audited and that it might be appropriate for the Civilian Pension Plan funds to be audited once per year or every three (3) years. Mr. Bonar stated that the Board and pensioners should be made aware that the fees for performing the audit would come from the Civilian Pension Fund.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 10 Mrs. Mitchell stated that Council should also be made aware since this would affect the Plan’s unfunded liability. Mr. Blakeman moved that the cost of performing an annual audit of the General Employees’ Pension Fund be examined and reported to the Board, seconded by Mr. Lynn. Mr. Koenig felt that once per year was too frequent and that this was not a good use of funds. Mr. Blakeman moved to amend the motion to specify that the cost of performing an audit of the General Employees’ Pension Fund every one (1), three (3), and five (5) years be examined and reported to the Board, seconded by Mr. Lynn. The motion carried by a vote of four (4) yes (Bonar, Lynn, Blakeman, and Koenig), one (1) no (Mitchell), and two (2) absent (Clendaniel and Hettinger absent). Mrs. Mitchell explained that she objected because she felt that it would be cost prohibitive to evaluate all of the mutual funds involved and the manner in which investments are set up. Financial Activity for the Fiscal Year Ending June 30, 2012 and Results of Actuarial Study Mrs. Mitchell reviewed information excerpted from a presentation that she provided to Council on January 7, 2013 to update them on the City’s unfunded liabilities, including the General Employee Pension Plan. She noted that Page 7 of the Presentation showed that as of June 30, 2012, the Cash and Cash Equivalents were $861,458 and investments in mutual funds totaled $21,187,128, for total assets of $22,048,586. She explained that the cash and cash equivalent figures were a combination of funds at Citizens’ Bank and at Wells Fargo. Mrs. Mitchell advised members that the additions and deductions from the Pension Plan showed the benefit payments, general administration costs, and contributions from the City and employees. She pointed out that the general administration cost consists of Wells Fargo fees and Milliman fees for investment advisory services and that actuarial fees are charged to the City’s budget rather than the City’s pension plans. Referring to Page 9 of the presentation, Mrs. Mitchell explained that the Annual Required Contribution is determined by the actuarial study. In reference to the Required Supplementary Information - Schedule of Funding Progress on Page 10, Mrs. Mitchell stated that this reflected the plan assets for the last several years and the Actuarial Accrued Liability, the Unfunded Accrued Liability, and the Funded Ratio, as well as Payroll and the Unfunded Portion as a Percent of Payroll. She explained that all of these charts are required to be included in the Comprehensive Annual Financial Report (CAFR) based on Governmental Accounting Standards Board (GASB) requirements. Mrs. Mitchell explained that the chart on Page 16 reflected the General Pension, Police Pension, and Other Post-Employment Benefits (OPEB) fund liabilities and assets.

CIVILIAN PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 11 By unanimous consent, the meeting adjourned at 3:03 p.m. David L. Bonar Chair DLB/JS/mk/dd/tm S:\AGENDAS-MINUTES-PACKETS\Misc-Minutes\PENSION\2013\02-14-2013 Civilian Pension.wpd

SPECIAL CIVILIAN PENSION BOARD MEETING A Special Civilian Pension Board Meeting was held on March 25, 2013 at 9:14 a.m. with Chairman Bonar presiding. Members present were Mr. Lynn, Mr. Koenig, and Mrs. Mitchell. Mr. Blakeman, Mr. Clendaniel, and Mrs. Hettinger were absent. Mrs. Kim Hawkins, Human Resources Director, was also present. ADOPTION OF AGENDA By unanimous consent, the agenda was adopted as presented. Mr. Koenig moved to recess into Executive Session to discuss personnel matters, seconded by Mr. Lynn and unanimously carried. Meeting recessed at 9:14 a.m. Meeting reconvened at 9:17 a.m. REQUEST FOR DISABILITY RETIREMENT - BRUCE MARVEL (In Accordance with Chapter 2, Article IV, Division 7, Subdivision 1, Section 2-332) During the Executive Session, Mrs. Kim Hawkins, Human Resources Director, reviewed a request for disability retirement received from Mr. Bruce Marvel, Motor Equipment Operator III, Streets Division. Mr. Lynn noted that sufficient medical information had been provided to forego an independent medical evaluation. Mr. Lynn moved to approve Mr. Marvel’s request for disability retirement, seconded by Mrs. Mitchell and unanimously carried. Mr. Lynn moved for adjournment, seconded by Mr. Koenig and unanimously carried. Meeting adjourned at 9:18 a.m. David L. Bonar Chair DLB/JS/dd/tm S:\AGENDAS-MINUTES-PACKETS\Misc-Minutes\PENSION\2013\03-25-2013 - Civilian Pension Board - Special Meeting - Executive Session (Public).wpd

Quarterly Investment Monitor Summary Report for the Quarter Ending March 31, 2013 Prepared for City of Dover, Delaware General Employee Pension Plan

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 General Employee Pension Plan – Board From: Jeff Marzinsky & Kevin Abessi/Milliman Re: Investment Committee Meeting Notes – 5/09/2013 Enclosures: Milliman Quarterly Investment Monitor Report (QIM) 1. Defined Benefit Pension Plan Investment Review through 3/31/2013: a. As of 3/31/2013, assets in the plan total $24.88 million, up from $24.61 million as of 12/31/2012. During the quarter, the plan had contributions of roughly $184 thousand, withdrawals of approximately $878 thousand, and fees of $3,797.60. b. Performance of the plan portfolio, with a +4.01% net (+4.09% gross) return, was above the Plan normal portfolio index performance of +3.75%. c. Plan asset allocation is within range of target allocations set in November 2012. NEW Target Allocation Fund with Additional Asset NEW Asset Allocation Range Category Description Category Investment Name Classes 11/2012 Money Market CA Wells Fargo Advtg Treas Plus MMkt 4.50% 0-10%; target 5% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 0.50% 0-10%; target 5% Cash + STB Inflation Protected Bonds TIPS Vanguard Inflation Prot Sec 2.00% 0-7%; target of 2% TIPS Intermediate Term Bonds INTB Vanguard Intermediate Bond 13.00% 8-18%; target 13% INTB Long Term Bonds LTB PIMCO Long Duration 9.50% 14-24%; target 19% LTB Long Term Bonds LTB Vanguard Long Duration 9.50% 14-24%; target 19% LTB Large Cap Value LCV Vanguard Equity Income 10.00% 5-15%; target 10% LCV Large Cap Growth LCG Vanguard Morgan Growth 5.50% 6-11%; target 11% LCG Large Cap Growth LCG Vanguard Primecap 5.50% 6-11%; target 11% LCG Mid Cap MCV Vanguard Mid Cap Value Index 5.00% 0-10%; target 5% MC Small Cap SCV Target Small Cap Value 5.00% 0-10%; target 5% SC Real Estatement Investment REIT Vanguard REIT Index 5.00% 0-10%; target 5% REIT Foreign Equity GLB American Funds New Perspective 5.00% 5-15%; target 10% GLB Foreign Equity GLB Harding Loevner Global Equity 5.00% 5-15%; target 10% GLB Emerging Markets EMG Vanguard Emerging Mkts 15.00% 10-20%; target 15% Emg Mkts Offices in Principal Cities Worldwide

City of Dover General Employees Pension Plan Quarterly Return Summary CIVILIAN-NET CIVILIAN-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 1/31/2013 $ 24,607,857.65 $ 42,287.75 $ 283,469.14 $ 1,254.58 $ 479,262.98 $ 24,844,684.66 1.97% 1.99% 2/28/2013 $ 24,844,684.66 $ 41,728.48 $ 289,056.19 $ 1,255.08 $ 154,041.78 $ 24,750,143.65 0.63% 0.65% 3/31/2013 $ 24,750,143.65 $ 100,000.00 $ 305,123.86 $ 1,287.94 $ 334,788.89 $ 24,878,520.74 1.36% 1.39% $ 184,016.23 $ 877,649.19 $ 3,797.60 $ 968,093.65 Quarterly Return 4.01% 4.08% Milliman, Inc.

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

Quarterly Investment Monitor Market Indices - 1st Quarter 2013 3 1 3 5 Index Months Year Years Years BofAML US Treasury Bill 3 Mon 0.02 0.12 0.11 0.34 Barclays US Govt 1-3 Yr TR USD 0.12 0.66 1.29 1.91 Barclays US Govt/Credit Interm TR USD 0.26 3.53 4.75 4.61 Barclays US Government Long TR USD -2.26 7.42 12.39 8.28 Barclays US Long Credit TR USD -1.79 9.83 12.05 10.45 Barclays US Corporate High Yield TR USD 2.89 13.13 11.24 11.65 DJ Industrial Average TR USD 11.93 13.37 13.32 6.50 S&P 500 TR 10.61 13.96 12.67 5.81 NASDAQ 100 TR USD 6.25 3.72 13.96 10.58 NASDAQ Composite TR USD 8.52 7.14 12.10 8.59 Russell 1000 Value TR USD 12.31 18.77 12.74 4.85 Russell 1000 TR USD 10.96 14.43 12.93 6.15 Russell 1000 Growth TR USD 9.54 10.09 13.06 7.30 Russell 2000 Value TR USD 11.63 18.09 12.12 7.29 Russell 2000 TR USD 12.39 16.30 13.45 8.24 Russell 2000 Growth TR USD 13.21 14.52 14.75 9.04 FTSE NAREIT All REITs TR 9.11 18.73 17.86 7.55 MSCI EAFE NR USD 5.13 11.25 5.00 -0.89 MSCI EAFE Small Cap NR USD 8.42 13.28 8.41 2.06 MSCI EM NR USD -1.62 1.96 3.27 1.09 City of Dover, Delaware General Employee Pension Plan 3

Quarterly Investment Monitor Broad Market Commentary - 1st Quarter 2013 Broad Markets - Quarter Broad Markets - Five Years Jan-13 - Mar-13 Mar-08 - Mar-13 11 160 10 150 9 140 8 130 7 120 Total Return, % Growth of $100 6 110 5 100 4 90 3 80 2 70 1 60 0 50 Jan-13 - Mar-13 Mar-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Mar-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 st · The U.S. stock market rose sharply in the 1 quarter on improving U.S. economic data, better than expected corporate earnings, and assurances of continued stimulus by the Federal Reserve Bank. · Developed international equity markets posted solid returns on efforts by central banks to support economic growth, while emerging markets struggled on weak commodity prices and mixed economic data. · The Federal Reserve Bank announced it would continue its securities purchases at the current rate of $85 billion per month and keep short-term interest rates low until unemployment falls below 6.5%. · As the quarter ended, mutual fund investors increased their holdings in bonds and stocks. For the quarter, bond funds had net inflows of $70.4 billion, while stock funds had net inflows of $67.6 billion. Total money market mutual fund assets decreased by $38.1 billion to $2.629 trillion. · The unemployment rate fell from 7.8% to 7.6%, as total employment increased by 504,000 jobs. · The price of oil increased from $92 per barrel to $97 during the quarter, an increase of 5.4%. · For the three months ending March 31, 2013, annualized seasonally adjusted CPI – U was 2.1%. Rising prices for used cars and trucks drove the increase. City of Dover, Delaware General Employee Pension Plan 4

Quarterly Investment Monitor US Fixed Income Market Commentary - 1st Quarter 2013 US Fixed Income - Quarter US Fixed Income - Five Years Jan-13 - Mar-13 Mar-08 - Mar-13 3 180 2 160 1 140 Total Return, % Growth of $100 0 120 100 -1 80 -2 60 -3 Mar-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Mar-13 Jan-13 - Mar-13 Total Total BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD US Bond Market · The broad fixed income market fell 0.12% in the 1st quarter, as the negative impact from a 0.12% rise in interest rates more than offset the coupon return of 0.80%. · The short end of the yield curve remained unchanged as the Fed maintained its near-zero interest rate policy. · Interest rates increased slightly from the 5- to the 30-year Treasury rates. · High-yield bonds were the best performing sector this quarter, up 2.89%, as investors favored bonds with higher yields. · Long-term corporate bonds were down 2.26% due to rising yields on the long end of the curve. · Long-term government bonds were the worst performing sector this quarter, down 2.89%, as investors moved out of safe-haven assets. · 91-Day T-Bill returned 0.02% in the first quarter as compared with 0.04% in the fourth quarter. City of Dover, Delaware General Employee Pension Plan 5

Quarterly Investment Monitor US Equity Market Commentary - 1st Quarter 2013 US Equity - Quarter US Equity - Five Years Jan-13 - Mar-13 Mar-08 - Mar-13 14 160 12 140 10 120 Total Return, % Growth of $100 8 100 6 80 4 60 2 0 40 Jan-13 - Mar-13 Mar-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Mar-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 13.21%. · In terms of capitalization, small-cap stocks outperformed large-cap stocks. · In comparing styles, value outperformed growth in the large-cap area of the market, while growth beat value in the small-cap area. · REITs had a strong quarter, up 7.04%, due to improving fundamentals, ready access to capital, and strong demand for dividend-paying securities. The best performing sectors were manufactured homes and timber. · Health care was the best performing sector, up 15.82%, with strong gains in biotechnology and more traditional pharmaceutical firms. · Materials were the worst performing sector, up 4.78%, on concerns about the sustainability of global growth. City of Dover, Delaware General Employee Pension Plan 6

Quarterly Investment Monitor International Market Commentary - 1st Quarter 2013 International - Quarter Jan-13 - Mar-13 9 International - Five Years 8 7 Mar-08 - Mar-13 6 Total Return, % 5 120 4 3 110 2 1 0 100 -1 -2 Growth of $100 90 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD 80 MSCI EM NR USD Regional Performance - Quarter 70 Jan-13 - Mar-13 12 60 10 50 Total Return, % 8 6 40 Mar-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Mar-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 up against the yen, pound, and the euro. · For the quarter, the EAFE Index was up 5.13% and Emerging Markets were down 1.62%. Local currency returns for the EAFE Index and Emerging Markets were 9.67% and -0.49%, respectively. · Among the major international regions, Japanese stocks had the highest return, up 12.33%, in response to the Bank of Japan's announcement of more aggressive stimulus to the Japanese economy through quantitative easing. · Stocks in the Middle East and Africa had the lowest return, down 7.56%, especially in South Africa where investors worried about politics and the mining industry. · Small-cap stocks, up 8.4%, outperformed large-cap stocks, up 5.1%. City of Dover, Delaware General Employee Pension Plan 7

Quarterly Investment Monitor Data as of 03/31/2013 Performance Summary City of Dover, Delaware General Employee Pension Plan 8

Quarterly Investment Monitor Data as of 03/31/2013 Asset Allocation Balances As of Percent As of Balances As of Percent As of Notes 03/31/2013 03/31/2013 12/31/2012 12/31/2012 Wells Fargo Advantage Treas Plus MMkt I $1,097,215 4.41% $775,587 3.15% PISXX Vanguard Short-Term Bond Index Signal $124,115 0.50% $489,894 1.99% VBSSX Vanguard Inflation-Protected Secs I $499,046 2.00% $502,252 2.04% VIPIX Vanguard Interm-Term Bond Index Signal $3,251,938 13.06% $3,196,866 12.99% VIBSX Vanguard Long-Term Bond Index I $2,387,624 9.59% $2,345,184 9.53% VBLLX PIMCO Long Duration Total Return Instl $2,377,812 9.55% $2,334,775 9.49% PLRIX Vanguard Equity-Income Adm $2,499,161 10.04% $2,420,770 9.84% VEIRX Vanguard Morgan Growth Adm $1,368,625 5.50% $1,337,394 5.43% VMRAX Vanguard PRIMECAP Inv $1,386,408 5.57% $1,331,608 5.41% VPMCX Vanguard Mid-Cap Value Index Admiral $1,255,241 5.04% $1,220,479 4.96% VMVAX Target Small Capitalization Value T $1,256,228 5.05% $1,223,367 4.97% TASVX American Funds New Perspective R6 $1,228,883 4.94% $1,220,696 4.96% RNPGX Harding Loevner Global Equity Inst $1,241,999 4.99% $1,212,771 4.93% HLMVX Vanguard Emerging Mkts Stock Idx I $3,660,413 14.70% $3,757,301 15.27% VEMIX Vanguard REIT Index I $1,260,078 5.06% $1,242,209 5.05% VGSNX Plan Total $24,894,786 $24,611,153 City of Dover, Delaware General Employee Pension Plan 9

Quarterly Investment Monitor Data as of 03/31/2013 Investment Policy Review - Active Management Return Return Excess Excess Relative Relative Alpha Sharpe Alpha Sharpe Fund Rank Rank Return Return StdDev StdDev Rank Rank Rank Rank Name 3Y 5Y 3Y 5Y 3Y 5Y 3Y 3Y 5Y 5Y Vanguard Inflation-Protected Secs I 21 27 -0.01 -0.23 1.01 1.01 35 20 43 30 PIMCO Long Duration Total Return Instl 38 19 -0.17 1.16 0.92 0.97 81 63 75 50 Vanguard Equity-Income Adm 3 7 3.31 3.03 0.81 0.83 3 3 8 10 Vanguard Morgan Growth Adm 37 49 -1.80 -1.92 1.19 1.15 50 46 53 51 Vanguard PRIMECAP Inv 29 20 -1.22 -0.18 1.10 1.09 24 25 20 19 Target Small Capitalization Value T 53 30 -1.95 -0.24 0.93 0.91 28 27 24 20 American Funds New Perspective R6 25 24 1.86 2.46 0.95 0.93 27 27 29 24 Harding Loevner Global Equity Inst 54 37 -0.05 1.61 0.97 0.94 51 50 40 37 Definitions Return Rank - Fund's category percentile return rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Relative StdDev - Fund's standard deviation relative to its benchmark, a value less than 1 implies the fund's standard deviation is lower than its benchmark. Alpha Rank - Fund's category percentile Alpha rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Sharpe Rank - Fund's category percentile Sharpe Ratio rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. City of Dover, Delaware General Employee Pension Plan 10

Quarterly Investment Monitor Data as of 03/31/2013 Investment Policy Review - Passive Management Excess Excess Tracking Tracking Fund Beta Beta Expense Return Return Error Error Name 3Y 5Y Ratio 3Y 5Y 3Y 5Y Vanguard Short-Term Bond Index Signal 1.08 0.85 1.92 0.70 1.59 0.89 0.11 Vanguard Interm-Term Bond Index Signal 2.81 NA 1.60 1.74 NA NA 0.11 Vanguard Long-Term Bond Index I 0.11 0.03 1.03 0.87 1.02 0.83 0.07 Vanguard Mid-Cap Value Index Admiral -0.63 0.70 0.95 2.51 0.99 3.98 0.10 Vanguard Emerging Mkts Stock Idx I -0.20 -0.22 1.01 3.05 1.02 2.99 0.12 Vanguard REIT Index I 1.29 2.00 1.00 0.21 0.99 0.55 0.08 Definitions Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Beta - Fund's Beta or sensitivity to movements compared to its benchmark, a value of 1 implies its moving in sync with its benchmark. Tracking Error - Fund's Tracking Error versus its benchmark, a value of 0 implies the Fund's ups and downs are the same size as its benchmark. City of Dover, Delaware General Employee Pension Plan 11

Quarterly Investment Monitor Data as of 03/31/2013 Investment Option Return Summary Asset Fund 3 1 3 5 10 Mstar Expense YTD Ticker Class Name Months Year Years Years Years Rating Ratio Taxable Money Market Wells Fargo Advantage Treas Plus MMkt I 0.00 0.00 0.01 0.01 0.20 1.59 PISXX NA 0.20 BofA ML 3-month T-bill total return Index 0.02 0.02 0.12 0.11 0.34 1.75 N/A NA NA Short-term Bond Vanguard Short-Term Bond Index Signal 0.21 0.21 1.80 2.73 3.22 3.57 VBSSX 3.00 0.11 Barclays US Govt/Credit 1-3 Yr TR USD 0.20 0.20 1.09 1.65 2.37 3.06 N/A NA NA Inflation-Protected Bond Vanguard Inflation-Protected Secs I (0.25) (0.25) 5.83 8.56 5.66 6.20 VIPIX 4.00 0.07 Barclays US Treasury US TIPS TR USD (0.36) (0.36) 5.68 8.57 5.89 6.32 N/A NA NA Intermediate-term Bond Vanguard Interm-Term Bond Index Signal 0.34 0.34 6.70 8.40 7.20 6.15 VIBSX 4.00 0.11 Barclays US Agg Float Adj TR USD (0.12) (0.12) 3.89 5.59 NA NA N/A NA NA Long-term Bond Vanguard Long-Term Bond Index I (1.57) (1.57) 9.39 12.42 9.58 7.57 VBLLX 3.00 0.07 Long-term Bond PIMCO Long Duration Total Return Instl (1.11) (1.11) 10.36 12.14 10.71 NA PLRIX 4.00 0.50 BC Long Government/Credit (1.98) (1.98) 8.94 12.31 9.55 7.52 N/A NA NA Large Value Vanguard Equity-Income Adm 11.28 11.28 16.62 15.43 7.10 10.07 VEIRX 5.00 0.21 S&P 500 Value 11.97 11.97 16.64 12.12 4.07 8.94 N/A NA NA Large Growth Vanguard Morgan Growth Adm 9.03 9.03 7.21 11.51 5.56 9.01 VMRAX 4.00 0.26 Large Growth Vanguard PRIMECAP Inv 14.16 14.16 19.23 12.09 7.30 11.46 VPMCX 4.00 0.45 S&P 500 Growth 9.33 9.33 11.61 13.31 7.48 8.10 N/A NA NA Mid-Cap Value Vanguard Mid-Cap Value Index Admiral 14.31 14.31 19.25 13.64 8.88 NA VMVAX 3.00 0.10 MSCI US Mid Cap 450 Index USD 13.34 13.34 15.95 14.27 8.18 12.20 N/A NA NA Small Value Target Small Capitalization Value T 12.37 12.37 16.26 13.23 8.96 13.78 TASVX 4.00 0.68 S&P 600 Index 11.81 11.81 16.14 15.18 9.19 12.36 N/A NA NA World Stock American Funds New Perspective R6 6.30 6.30 13.16 9.64 4.53 11.78 RNPGX 4.00 0.46 World Stock Harding Loevner Global Equity Inst 4.71 4.71 6.08 7.73 3.68 10.46 HLMVX 3.00 0.95 MSCI AC World Index ND USD 6.50 6.50 10.55 7.78 2.06 9.36 N/A NA NA Diversified Emerging Mkts Vanguard Emerging Mkts Stock Idx I (2.58) (2.58) 1.58 3.07 0.87 16.76 VEMIX 3.00 0.12 MSCI EM NR USD (1.62) (1.62) 1.96 3.27 1.09 17.05 N/A NA NA Real Estate Vanguard REIT Index I 8.11 8.11 14.89 17.30 7.31 12.47 VGSNX 3.00 0.08 MSCI US REIT NR USD 7.79 7.79 13.67 16.01 5.31 NA N/A NA NA Total Plan CIVILIAN-GROSS RETURN 4.08 4.08 7.54 7.23 5.13 NA N/A NA NA Total Plan CIVILIAN-NET RETURN 4.01 4.01 7.19 6.81 4.69 NA N/A NA NA Employee Plan Policy Index 3.75 3.75 8.09 8.54 4.78 7.71 N/A NA NA City of Dover, Delaware General Employee Pension Plan 12

Quarterly Investment Monitor Data as of 03/31/2013 U.S. Fixed Income Style Map 36 Month moving average, Apr-08 - Mar-13 BC Government BC Credit Bond BC Municipal Bond BC High Yield Corporate Bond BC Mortgage Backed Securities Barcap US Fixed Income Vanguard Short-Term Bond Index Signal Vanguard Inflation-Protected Secs I Vanguard Interm-Term Bond Index Signal Vanguard Long-Term Bond Index I PIMCO Long Duration Total Return Instl City of Dover, Delaware General Employee Pension Plan 13

Quarterly Investment Monitor Data as of 03/31/2013 U.S. Equity Style Map 36 Month moving average, Apr-08 - Mar-13 LgValue LgGrowth Small - Large MidValue MidGrowth SmValue SmGrowth Value - Growth S&P/BARRA Style Indices Vanguard Equity-Income Adm Vanguard Morgan Growth Adm Vanguard PRIMECAP Inv Vanguard Mid-Cap Value Index Admiral Target Small Capitalization Value T Vanguard REIT Index I City of Dover, Delaware General Employee Pension Plan 14

Quarterly Investment Monitor Data as of 03/31/2013 International Equity Style Map 36 Month moving average, Apr-08 - Mar-13 Europe Large Asia Pacific Large Small - Large Europe Small Asia Pacific Small European Emerging Asia Pacific Emerging Europe - Asia SBI Equity Indices American Funds New Perspective R6 Harding Loevner Global Equity Inst Vanguard Emerging Mkts Stock Idx I City of Dover, Delaware General Employee Pension Plan 15

Quarterly Investment Monitor Data as of 03/31/2013 Core Fund Review City of Dover, Delaware General Employee Pension Plan 16

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Short-Term Bond Index Signal 1.89 10.33 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VBSSX % Bonds Morningstar Category Short-term Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks to track the performance of a market-weighted bond index with a % Pref Cat Med Mkt Cap $MM 8141.24 short-term dollar-weighted average maturity. The fund employs an indexing investment % Conv Net Assets $MM 28494.83 approach designed to track the performance of the Barclays Capital U.S. 1-5 Year % Other Government/Credit Float Adjusted Index. It invests by sampling the index. The fund Turnover Ratio 51.00 % Non-US Bonds invests at least 80% of assets in bonds held in the index. It maintains a dollar-weighted % Assets in Top 10 Holdings 14.25 average maturity consistent with that of the index, which generally does not exceed 3 Total Number of Holdings 1506.00 years. Manager Name Joshua C. Barrickman 87.72 Manager Tenure 0.10 _________________________________________________________________________ Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.11 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 1.89 Closed to New Investors No 6 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.72 % United Kingdom NA % Non-US Stocks 0.00 5 % Eurozone NA % Pref 0.05 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 10.33 % Rank Cat 3 Yr 48 4 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 47 % Australasia NA 10 Year Mstar Rating 3 % Asia - Developed NA % Rank Cat 10 Yr 31 % Asia - Emerging NA 2 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials NA Avg Eff Duration 2.69 2 300 % Communication Services NA Effective Maturity 2.80 1 % Consumer Cyclical NA Avg Credit Quality AA % Consumer Defensive NA US Govt/ Agency NA 250 % Healthcare NA AAA 74.17 % Industrials NA AA 6.08 0 % Real Estate NA A 11.41 3 Months YTD 1 Year 3 Years 5 Years % Technology NA BBB 8.34 200 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD % Utilities NA Below B 0.00 NR/NA 0.00 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 2.5% 1.57% 100 Vanguard Short-Term Bond Index Signal 0.21 0.21 1.80 2.73 3.22 US Treasury Note 2.625% 1.56% Barclays US Govt/Credit 1-3 Yr TR USD 0.20 0.20 1.09 1.65 2.37 US Treasury Note 0.625% 1.56% Universe(5%) 1.07 1.07 5.73 5.53 5.88 US Treasury Note 1% 1.56% 50 Universe(25%) 0.54 0.54 3.69 3.44 4.22 US Treasury Note 1.75% 1.41% Universe(Median) 0.37 0.37 2.52 2.73 3.27 US Treasury Note 2.375% 1.40% US Treasury Note 0.25% 1.35% Universe(75%) 0.20 0.20 1.67 2.14 2.56 US Treasury Note 0.625% 1.33% Universe(95%) 0.04 0.04 0.82 1.20 1.34 0 0 US Treasury Note 1% 1.27% US Treasury Note 0.75% 1.24% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 17

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Short-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 -5 100 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -10 Up/Down Market Capture Ratio -15 Apr-10 - Mar-13 500 -20 450 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 400 Up Mkt Capture Ratio, % Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 350 300 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 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 1.26 200 150 100 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 50 3 3 3 3 0 -300 -200 -100 0 100 200 300 400 500 Down Mkt Capture Ratio, % 2 Excess Annualized StdDev, % Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Total Annualized StdDev, % 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD Sharpe Ratio Alpha, % 1 Return vs. Risk 1 1 1 Apr-10 - Mar-13 0 10 9 8 Total Annualized Return, % -1 0 0 0 7 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 6 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 4 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 3 Vanguard Short-Term Bond Index Signal -0.34 1.92 89.63 2.05 1.26 0.70 2 Barclays US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 2.44 0.62 0.00 1 Universe(5%) 2.49 2.56 87.41 2.99 2.67 2.60 0 Universe(25%) 1.07 1.77 73.20 2.48 1.79 1.45 0 1 2 3 4 Universe(Median) 0.35 1.33 55.10 2.04 1.26 0.97 Total Annualized StdDev, % Universe(75%) -0.08 1.14 35.57 1.75 0.95 0.60 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Universe(95%) -0.74 0.68 10.95 1.06 0.65 0.32 Cash Barclays US Govt/Credit 1-3 Yr TR USD City of Dover, Delaware General Employee Pension Plan 18

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Inflation-Protected Secs I 1.59 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VIPIX % Bonds Morningstar Category Inflation-Protected Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks to provide inflation protection and income consistent with % Pref Cat Med Mkt Cap $MM 10795.85 investment in inflation-indexed securities. The fund invests at least 80% of its assets in % Conv Net Assets $MM 43147.94 inflation-indexed bonds issued by the U.S. government, its agencies and % Other instrumentalities, and corporations. It may invest in bonds of any maturity; however, its Turnover Ratio 33.00 % Non-US Bonds dollar-weighted average maturity is expected to be in the range of 7 to 20 years. At a % Assets in Top 10 Holdings 48.69 minimum, all bonds purchased by the fund will be rated "investment grade" or, if unrated, Total Number of Holdings 33.00 will be considered by the advisor to be investment grade. Manager Name Gemma Wright-Casparius Manager Tenure 1.62 _________________________________________________________________________ 98.41 Fund Incept Date 06/29/2000 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 1.59 Closed to New Investors No 9 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 98.41 8 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.00 Portfolio Ratings 7 % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 6 % Africa NA % Non-US Bonds 0.00 % Rank Cat 3 Yr 10 % Middle East NA 5 Year Mstar Rating 5 % Japan NA % Rank Cat 5 Yr 22 % Australasia NA 10 Year Mstar Rating 4 % Asia - Developed NA % Rank Cat 10 Yr 18 % Asia - Emerging NA 3 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 2 % Basic Materials NA Avg Eff Duration 8.45 1.0 300 % Communication Services NA Effective Maturity 9.30 1 % Consumer Cyclical NA Avg Credit Quality Government 0.9 % Consumer Defensive NA US Govt/ Agency NA 0 250 % Healthcare NA AAA 100.00 0.8 % Industrials NA AA 0.00 -1 % Real Estate NA A 0.00 3 Months YTD 1 Year 3 Years 5 Years 0.7 % Technology NA BBB 0.00 200 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio 0.6 % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD % Utilities NA Below B 0.00 NR/NA 0.00 0.5 150 Turnover 0.4 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 5.83% 100 0.3 Vanguard Inflation-Protected Secs I -0.25 -0.25 5.83 8.56 5.66 US Treasury Note 5.47% Barclays US Treasury US TIPS TR USD -0.36 -0.36 5.68 8.57 5.89 US Treasury Note 1.125% 5.43% Universe(5%) 0.30 0.30 7.18 8.95 6.41 US Treasury Note 5.38% 0.2 50 Universe(25%) -0.17 -0.17 5.81 8.44 5.70 US Treasury Note 0.125% 5.17% Universe(Median) -0.42 -0.42 5.26 8.09 5.45 US Treasury Note 4.88% 0.1 US Treasury Bond 3.875% 4.21% Universe(75%) -0.53 -0.53 4.95 7.75 4.89 US Treasury Note 1.25% 4.15% Universe(95%) -0.96 -0.96 2.43 5.35 3.39 0.0 0 US Treasury Note 0.5% 4.11% US Treasury Bond 2.375% 4.07% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 19

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Inflation-Protected Secs I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 100 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -5 Up/Down Market Capture Ratio -10 Apr-10 - Mar-13 200 -15 180 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 160 Up Mkt Capture Ratio, % Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 140 120 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 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 80 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 1 3 5 4 0 0 20 40 60 80 100 120 140 160 180 200 220 Down Mkt Capture Ratio, % 4 3 Excess Annualized StdDev, % Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Total Annualized StdDev, % 2 Barclays US Treasury US TIPS TR USD 3 Sharpe Ratio Alpha, % 0 2 Return vs. Risk 2 1 Apr-10 - Mar-13 1 16 1 14 Total Annualized Return, % 12 -1 0 0 0 10 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 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 Inflation-Protected Secs I -0.03 1.00 98.95 1.89 4.36 0.45 Barclays US Treasury US TIPS TR USD 0.00 1.00 100.00 1.90 4.32 0.00 2 Universe(5%) 0.63 1.03 99.25 2.00 4.88 3.32 0 Universe(25%) 0.09 0.99 98.84 1.87 4.33 1.22 0 1 2 3 4 5 6 7 8 9 Universe(Median) -0.19 0.98 98.15 1.82 4.26 0.62 Total Annualized StdDev, % Universe(75%) -0.44 0.93 92.58 1.77 4.10 0.49 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Universe(95%) -0.92 0.63 65.86 1.31 3.77 0.38 Cash Barclays US Treasury US TIPS TR USD City of Dover, Delaware General Employee Pension Plan 20

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Interm-Term Bond Index Signal % Cash Portfolio Information Investment Strategy Summary 11.70 % US Stocks Ticker VIBSX % Bonds Morningstar Category Intermediate-term Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks to track the performance of a market-weighted bond index with % Pref Cat Med Mkt Cap $MM 16727.21 an intermediate-term dollar-weighted average maturity. The fund employs an indexing % Conv Net Assets $MM 17106.51 investment approach designed to track the performance of the Barclays U.S. 5-10 Year % Other Government/Credit Float Adjusted Index. This index includes all medium and larger issues Turnover Ratio 65.00 % Non-US Bonds of U.S. government, investment-grade corporate, and investment-grade international % Assets in Top 10 Holdings 25.09 dollar-denominated bonds that have maturities between 5 and 10 years and are publicly Total Number of Holdings 1421.00 issued. All of its investments will be selected through the sampling process, and at least Manager Name Joshua C. Barrickman 80% of its assets will be invested in bonds held in the index. 87.44 Manager Tenure 4.94 Fund Incept Date 03/01/1994 _________________________________________________________________________ Prospectus Exp Ratio 0.11 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 0.86 Closed to New Investors No 9 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.44 8 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.00 Portfolio Ratings 7 % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 6 % Africa NA % Non-US Bonds 11.70 % Rank Cat 3 Yr 8 % Middle East NA 5 Year Mstar Rating 5 % Japan NA % Rank Cat 5 Yr 19 % Australasia NA 10 Year Mstar Rating 4 % Asia - Developed NA % Rank Cat 10 Yr 14 % Asia - Emerging NA 3 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 2 % Basic Materials NA Avg Eff Duration 6.48 350 % Communication Services NA Effective Maturity 7.30 1 % Consumer Cyclical NA Avg Credit Quality A % Consumer Defensive NA US Govt/ Agency NA 300 0 0.5 % Healthcare NA AAA 53.01 % Industrials NA AA 4.94 -1 % Real Estate NA A 19.98 250 3 Months YTD 1 Year 3 Years 5 Years % Technology NA BBB 22.07 0.4 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio 200 % Utilities NA Below B 0.00 Vanguard Interm-Term Bond Index Signal Barclays US Agg Float Adj TR USD NR/NA 0.00 0.3 Turnover 150 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 3.625% 3.15% 0.2 Vanguard Interm-Term Bond Index Signal 0.34 0.34 6.70 8.40 7.20 US Treasury Note 3.5% 3.09% 100 Barclays US Agg Float Adj TR USD -0.12 -0.12 3.89 5.59 NA US Treasury Note 3.625% 2.97% Universe(5%) 0.13 0.13 4.87 6.45 6.09 US Treasury Note 3.125% 2.62% 0.1 Universe(25%) -0.05 -0.05 3.70 5.39 5.42 US Treasury Note 3.375% 2.45% 50 Universe(Median) -0.15 -0.15 3.60 5.32 5.25 US Treasury Note 2.625% 2.26% US Treasury Note 2% 2.26% Universe(75%) -0.24 -0.24 3.37 5.19 5.10 US Treasury Note 1.625% 2.25% Universe(95%) -0.31 -0.31 3.34 5.04 4.55 0.0 0 US Treasury Note 3.625% 2.05% US Treasury Note 2.625% 1.99% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 21

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Interm-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 11 0 10 25 9 Total Return Rank, % 8 50 7 Total Return, % 6 75 5 4 100 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 3 2 Up/Down Market Capture Ratio Apr-10 - Mar-13 1 160 0 140 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 120 Up Mkt Capture Ratio, % Vanguard Interm-Term Bond Index Signal Barclays US Agg Float Adj TR USD 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 Vanguard Interm-Term Bond Index Signal 5.65 5.22 1.75 3.91 7.66 5.01 6.89 9.48 10.73 7.02 Barclays US Agg Float Adj TR USD NA NA NA NA NA NA NA 6.58 7.92 4.32 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 0.0 3 5 2 0 0 20 40 60 80 100 120 140 160 180 200 -0.1 Down Mkt Capture Ratio, % 4 Excess Annualized StdDev, % Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Total Annualized StdDev, % -0.2 2 Barclays US Agg Float Adj TR USD 3 Sharpe Ratio Alpha, % -0.3 1 Return vs. Risk 2 -0.4 1 Apr-10 - Mar-13 9 1 -0.5 8 7 Total Annualized Return, % -0.6 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 Vanguard Interm-Term Bond Index Signal Barclays US Agg Float Adj TR USD 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Interm-Term Bond Index Signal -0.52 1.60 94.75 1.99 4.04 1.74 2 Barclays US Agg Float Adj TR USD 0.00 1.00 100.00 2.18 2.46 0.00 1 Universe(5%) -0.04 1.23 99.34 2.15 3.06 0.84 0 Universe(25%) -0.15 1.01 99.25 2.11 2.49 0.28 0 1 2 3 4 5 Universe(Median) -0.31 0.99 99.03 2.04 2.45 0.25 Total Annualized StdDev, % Universe(75%) -0.43 0.98 98.70 2.00 2.42 0.21 Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Universe(95%) -0.52 0.97 96.84 1.97 2.41 0.20 Cash Barclays US Agg Float Adj TR USD City of Dover, Delaware General Employee Pension Plan 22

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Long-Term Bond Index I % Cash Portfolio Information Investment Strategy Summary 12.37 % US Stocks Ticker VBLLX % Bonds Morningstar Category Long-term Bond % Non-US Stocks Avg Mkt Cap $MM NA The investment seeks to track the performance of a market-weighted bond index with a % Pref Cat Med Mkt Cap $MM 37398.17 long-term dollar-weighted average maturity. The fund employs an indexing investment % Conv Net Assets $MM 5786.18 approach designed to track the performance of the Barclays Capital U.S. Long % Other Government/Credit Float Adjusted Index. It invests at least 80% of assets in bonds held Turnover Ratio 41.00 % Non-US Bonds in the index. The fund maintains a dollar-weighted average maturity consistent with that % Assets in Top 10 Holdings 21.51 of the index, which generally ranges between 15 and 30 years. Total Number of Holdings 1434.00 Manager Name Joshua C. Barrickman _________________________________________________________________________ 87.13 Manager Tenure 0.10 Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 0.46 Closed to New Investors No 16 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.13 14 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.04 Portfolio Ratings 12 % Europe - ex Euro NA % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 10 % Africa NA % Non-US Bonds 12.37 % Rank Cat 3 Yr 34 % Middle East NA 5 Year Mstar Rating 8 % Japan NA % Rank Cat 5 Yr 56 % Australasia NA 10 Year Mstar Rating 6 % Asia - Developed NA % Rank Cat 10 Yr 50 % Asia - Emerging NA 4 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 2 % Basic Materials NA Avg Eff Duration 14.77 2 400 % Communication Services NA Effective Maturity 24.10 0 % Consumer Cyclical NA Avg Credit Quality A 350 % Consumer Defensive NA US Govt/ Agency NA -2 % Healthcare NA AAA 42.05 % Industrials NA AA 7.45 300 -4 % Real Estate NA A 23.98 3 Months YTD 1 Year 3 Years 5 Years % Technology NA BBB 26.52 % Energy NA BB 0.00 250 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Long-Term Bond Index I BC Long Government/Credit % Utilities NA Below B 0.00 NR/NA 0.00 1 200 Turnover 3 Year to 1 3 5 Top Ten Holdings 150 Performance Months Date Year Years Years US Treasury Bond 4.375% 2.75% Vanguard Long-Term Bond Index I -1.57 -1.57 9.39 12.42 9.58 US Treasury Bond 4.25% 2.64% 100 BC Long Government/Credit -1.98 -1.98 8.94 12.31 9.55 US Treasury Bond 2.75% 2.19% Universe(5%) 1.59 1.59 15.16 15.39 12.50 US Treasury Bond 4.375% 2.10% Universe(25%) 0.43 0.43 10.39 12.26 10.19 US Treasury Bond 4.375% 2.09% 50 Universe(Median) -0.22 -0.22 9.23 9.15 8.85 US Treasury Bond 4.75% 2.09% US Treasury Bond 3.125% 2.07% Universe(75%) -1.09 -1.09 6.11 7.69 6.11 US Treasury Bond 4.625% 1.90% Universe(95%) -2.17 -2.17 3.09 3.70 3.76 0 0 US Treasury Bond 3% 1.88% US Treasury Bond 4.25% 1.79% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 23

Quarterly Investment Monitor Data as of 03/31/2013 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 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -10 Up/Down Market Capture Ratio -20 Apr-10 - Mar-13 250 -30 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Long-Term Bond Index I BC Long Government/Credit 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Long-Term Bond Index I 5.50 8.40 5.32 2.75 6.71 8.77 1.91 10.43 22.23 8.63 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 12 3 14 14 0 -150 -100 - 50 0 50 100 150 200 250 300 350 10 12 12 Down Mkt Capture Ratio, % 8 Excess Annualized StdDev, % 10 10 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Total Annualized StdDev, % 2 BC Long Government/Credit 6 Sharpe Ratio 8 8 Alpha, % 4 6 6 Return vs. Risk 2 1 Apr-10 - Mar-13 4 4 0 22 20 -2 2 2 18 Total Annualized Return, % -4 0 0 0 16 14 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 12 Vanguard Long-Term Bond Index I BC Long Government/Credit 10 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 8 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 6 Vanguard Long-Term Bond Index I -0.25 1.03 99.13 1.36 8.84 0.87 4 BC Long Government/Credit 0.00 1.00 100.00 1.39 8.54 0.00 2 Universe(5%) 10.42 1.36 94.17 2.64 12.13 13.88 0 Universe(25%) 5.28 0.69 78.13 2.01 7.87 8.15 0 5 10 15 20 25 30 Universe(Median) 3.82 0.32 49.42 1.71 5.17 6.93 Total Annualized StdDev, % Universe(75%) 1.76 0.14 27.89 1.47 4.20 5.55 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Universe(95%) -2.46 -0.08 2.31 1.09 1.73 2.01 Cash BC Long Government/Credit City of Dover, Delaware General Employee Pension Plan 24

Quarterly Investment Monitor Data as of 03/31/2013 PIMCO Long Duration Total Return Instl 10.18 % Cash Portfolio Information Investment Strategy Summary 14.54 % US Stocks Ticker PLRIX % Bonds Morningstar Category Long-term Bond % Non-US Stocks Avg Mkt Cap $MM 52113.55 The investment seeks maximum total return, consistent with prudent investment % Pref Cat Med Mkt Cap $MM 37398.17 management. The fund invests at least 65% of its total assets in a diversified portfolio % Conv Net Assets $MM 6661.57 of Fixed Income Instruments of varying maturities, which may be represented by % Other forwards or derivatives such as options, futures contracts or swap agreements. It Turnover Ratio 219.00 % Non-US Bonds invests primarily in investment grade debt securities, but may invest up to 10% of its % Assets in Top 10 Holdings 23.77 total assets in high yield securities ("junk bonds") that are rated B or higher by Moody's, Total Number of Holdings 850.00 or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of Manager Name Stephen Rodosky comparable quality. Manager Tenure 5.67 74.72 Fund Incept Date 08/31/2006 _________________________________________________________________________ Prospectus Exp Ratio 0.50 Phone Number 888-877-4626 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 10.18 Closed to New Investors No 16 % Canada 0.00 % US Stocks 0.00 % Latin America 0.00 % Bonds 74.72 14 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.29 Portfolio Ratings 12 % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.26 3 Year Mstar Rating 10 % Africa 0.00 % Non-US Bonds 14.54 % Rank Cat 3 Yr 43 % Middle East 0.00 5 Year Mstar Rating 8 % Japan 0.00 % Rank Cat 5 Yr 23 % Australasia 0.00 10 Year Mstar Rating NA 6 % Asia - Developed 0.00 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 4 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 2 % Basic Materials 0.00 Avg Eff Duration 13.69 2 400 % Communication Services 0.00 Effective Maturity 21.70 0 % Consumer Cyclical 0.00 Avg Credit Quality NA 350 % Consumer Defensive 0.00 US Govt/ Agency NA -2 % Healthcare 0.00 AAA NA % Industrials 0.00 AA NA 300 -4 % Real Estate 0.00 A NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 0.00 BBB NA % Energy 0.00 BB NA 250 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 100.00 B NA Median to 75th Percentile 75th to 95th Percentile Ratio PIMCO Long Duration Total Return Instl BC Long Government/Credit % Utilities 0.00 Below B NA NR/NA NA 1 200 Turnover 3 Year to 1 3 5 Top Ten Holdings 150 Performance Months Date Year Years Years US Treasury Bond 4.375% 3.71% PIMCO Long Duration Total Return Instl -1.11 -1.11 10.36 12.14 10.71 US Treasury Bond 3.125% 2.98% 100 BC Long Government/Credit -1.98 -1.98 8.94 12.31 9.55 US Treasury Bond 4.25% 2.87% Universe(5%) 1.59 1.59 15.16 15.39 12.50 US Treasury Bond 6% 2.50% Universe(25%) 0.43 0.43 10.39 12.26 10.19 US Treasury Bond 5.25% 2.49% 50 Universe(Median) -0.22 -0.22 9.23 9.15 8.85 US Treasury Bond 6.25% 2.04% Irs Usd 3mls/1.50000s 01/04/16-18 Cme 1.97% Universe(75%) -1.09 -1.09 6.11 7.69 6.11 US Treasury Bond 4.5% 1.78% Universe(95%) -2.17 -2.17 3.09 3.70 3.76 0 0 US Treasury Bond 5.375% 1.76% Quebec Prov Cda 5.75% 1.66% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 25

Quarterly Investment Monitor Data as of 03/31/2013 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 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -10 Up/Down Market Capture Ratio -20 Apr-10 - Mar-13 250 -30 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % PIMCO Long Duration Total Return Instl BC Long Government/Credit 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 PIMCO Long Duration Total Return Instl NA NA NA NA 7.83 12.38 5.62 11.64 18.57 10.28 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 12 3 14 14 0 -150 -100 - 50 0 50 100 150 200 250 300 350 10 12 12 Down Mkt Capture Ratio, % 8 Excess Annualized StdDev, % 10 10 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Total Annualized StdDev, % 2 BC Long Government/Credit 6 Sharpe Ratio 8 8 Alpha, % 4 6 6 Return vs. Risk 2 1 Apr-10 - Mar-13 4 4 0 22 20 -2 2 2 18 Total Annualized Return, % -4 0 0 0 16 14 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 12 PIMCO Long Duration Total Return Instl BC Long Government/Credit 10 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 8 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 6 PIMCO Long Duration Total Return Instl 1.12 0.89 92.93 1.49 7.87 2.30 4 BC Long Government/Credit 0.00 1.00 100.00 1.39 8.54 0.00 2 Universe(5%) 10.42 1.36 94.17 2.64 12.13 13.88 0 Universe(25%) 5.28 0.69 78.13 2.01 7.87 8.15 0 5 10 15 20 25 30 Universe(Median) 3.82 0.32 49.42 1.71 5.17 6.93 Total Annualized StdDev, % Universe(75%) 1.76 0.14 27.89 1.47 4.20 5.55 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Universe(95%) -2.46 -0.08 2.31 1.09 1.73 2.01 Cash BC Long Government/Credit City of Dover, Delaware General Employee Pension Plan 26

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Equity-Income Adm 4.53 9.22 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VEIRX % Bonds Morningstar Category Large Value % Non-US Stocks Avg Mkt Cap $MM 60552.69 The investment seeks to provide an above-average level of current income and % Pref Cat Med Mkt Cap $MM 42909.94 reasonable long-term capital appreciation. The fund invests mainly in common stocks of % Conv Net Assets $MM 11531.78 mid-size and large companies whose stocks pay above-average levels of dividend % Other income and are considered to have the potential for capital appreciation. In addition, Turnover Ratio 26.00 % Non-US Bonds the advisors generally look for companies that they believe are committed to paying % Assets in Top 10 Holdings 30.48 dividends consistently. Under normal circumstances, it will invest at least 80% of its Total Number of Holdings 153.00 assets in equity securities. The fund uses multiple investment advisors. Manager Name James P. Stetler Manager Tenure 9.25 _________________________________________________________________________ 86.25 Fund Incept Date 03/21/1988 Prospectus Exp Ratio 0.21 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 90.34 % Cash 4.53 Closed to New Investors No 25 % Canada 0.59 % US Stocks 86.25 % Latin America 0.00 % Bonds 0.00 % United Kingdom 4.74 % Non-US Stocks 9.22 % Eurozone 1.78 % Pref 0.00 Portfolio Ratings 20 % Europe - ex Euro 2.55 % 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 2 % Middle East 0.00 5 Year Mstar Rating 15 % Japan 0.00 % Rank Cat 5 Yr 7 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 9 % Asia - Emerging 0.00 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 3.07 Avg Eff Duration NA 2 180 % Communication Services 4.75 Effective Maturity NA 5 % Consumer Cyclical 6.80 Avg Credit Quality NA 160 % Consumer Defensive 15.12 US Govt/ Agency NA % Healthcare 13.20 AAA NA 140 % Industrials 14.45 AA NA 0 % Real Estate 0.02 A NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 9.08 BBB NA 120 % Energy 13.16 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 13.52 B NA Median to 75th Percentile 75th to 95th Percentile Ratio 100 Vanguard Equity-Income Adm S&P 500 Value % Utilities 6.84 Below B NA NR/NA NA 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Exxon Mobil Corporation 4.26% 60 Vanguard Equity-Income Adm 11.28 11.28 16.62 15.43 7.10 Chevron Corp 3.81% S&P 500 Value 11.97 11.97 16.64 12.12 4.07 Johnson & Johnson 3.40% 40 Universe(5%) 13.84 13.84 21.26 14.74 7.52 Merck & Co Inc 3.16% Universe(25%) 12.19 12.19 17.20 12.43 5.89 Pfizer Inc 2.96% Universe(Median) 11.33 11.33 15.33 11.33 4.82 AT&T Inc 2.86% 20 JPMorgan Chase & Co 2.84% Universe(75%) 10.63 10.63 13.84 9.82 3.50 General Electric Co 2.70% Universe(95%) 9.13 9.13 9.64 7.07 1.93 0 0 Philip Morris International, Inc. 2.36% Microsoft Corporation 2.13% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 27

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Equity-Income Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -30 Up/Down Market Capture Ratio Apr-10 - Mar-13 -40 200 -50 180 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 160 Up Mkt Capture Ratio, % Vanguard Equity-Income Adm S&P 500 Value 140 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 Vanguard Equity-Income Adm 25.24 13.69 4.52 20.77 4.99 -30.86 17.26 14.99 10.69 13.58 S&P 500 Value 30.36 15.03 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 80 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 6 2 20 7 0 5 18 0 20 40 60 80 100 120 140 160 6 4 Down Mkt Capture Ratio, % 16 Excess Annualized StdDev, % 3 5 Morningstar Large Value Universe Vanguard Equity-Income Adm Total Annualized StdDev, % 14 S&P 500 Value 2 12 Sharpe Ratio 4 Alpha, % 1 1 10 0 3 Return vs. Risk 8 -1 Apr-10 - Mar-13 6 2 -2 25 -3 4 1 -4 2 20 Total Annualized Return, % -5 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 15 Vanguard Equity-Income Adm S&P 500 Value MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Equity-Income Adm 5.24 0.78 94.26 1.17 12.87 4.63 5 S&P 500 Value 0.00 1.00 100.00 0.79 15.95 0.00 Universe(5%) 4.50 1.19 98.97 1.11 19.28 6.48 0 Universe(25%) 0.98 1.05 98.23 0.84 17.02 4.55 0 5 10 15 20 25 30 Universe(Median) -0.49 0.98 96.96 0.75 15.83 3.17 Total Annualized StdDev, % Universe(75%) -2.16 0.90 94.57 0.65 14.73 2.37 Morningstar Large Value Universe Vanguard Equity-Income Adm Universe(95%) -4.81 0.72 88.95 0.50 11.92 1.71 Cash S&P 500 Value City of Dover, Delaware General Employee Pension Plan 28

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Morgan Growth Adm 3.85 5.15 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VMRAX % Bonds Morningstar Category Large Growth % Non-US Stocks Avg Mkt Cap $MM 31985.84 The investment seeks long-term growth of capital. The fund invests mainly in the stocks % Pref Cat Med Mkt Cap $MM 37831.31 of mid- and large-capitalization U.S. companies whose revenues and/or earnings are % Conv Net Assets $MM 9265.38 expected to grow faster than those of the average company in the market. It uses % Other multiple investment advisors. Turnover Ratio 49.00 % Non-US Bonds % Assets in Top 10 Holdings 19.18 _________________________________________________________________________ Total Number of Holdings 331.00 Manager Name James P. Stetler Manager Tenure 9.25 91.00 Fund Incept Date 12/31/1968 Prospectus Exp Ratio 0.26 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 94.64 % Cash 3.85 Closed to New Investors No 16 % Canada 1.20 % US Stocks 91.00 % Latin America 0.00 % Bonds 0.00 14 % United Kingdom 0.75 % Non-US Stocks 5.15 % Eurozone 1.00 % Pref 0.00 Portfolio Ratings % Europe - ex Euro 1.44 % Conv 0.00 Mstar Rating Total Annualized Return, % 12 % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 35 % Middle East 0.39 5 Year Mstar Rating 10 % Japan 0.00 % Rank Cat 5 Yr 49 % Australasia 0.12 10 Year Mstar Rating 8 % Asia - Developed 0.27 % Rank Cat 10 Yr 28 % Asia - Emerging 0.19 6 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 3.86 Avg Eff Duration NA 2 300 4 % Communication Services 3.33 Effective Maturity NA % Consumer Cyclical 16.68 Avg Credit Quality NA 2 % Consumer Defensive 8.89 US Govt/ Agency NA 250 % Healthcare 15.38 AAA NA % Industrials 12.20 AA NA 0 % Real Estate 1.05 A NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 27.37 BBB NA 200 % Energy 5.17 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 6.06 B NA Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Morgan Growth Adm S&P 500 Growth % Utilities 0.00 Below B NA NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Apple Inc 4.64% 100 Vanguard Morgan Growth Adm 9.03 9.03 7.21 11.51 5.56 Cisco Systems Inc 2.34% S&P 500 Growth 9.33 9.33 11.61 13.31 7.48 Google, Inc. Class A 2.17% Universe(5%) 11.79 11.79 15.12 14.54 9.70 International Business Machines Corp 1.97% 50 Universe(25%) 9.87 9.87 10.80 12.27 7.03 Microsoft Corporation 1.49% Universe(Median) 8.76 8.76 8.25 10.97 5.52 Philip Morris International, Inc. 1.41% Wal-Mart Stores Inc 1.36% Universe(75%) 7.67 7.67 5.70 9.63 4.00 Amazon.com Inc 1.34% Universe(95%) 5.87 5.87 2.08 6.58 1.24 0 0 Coca-Cola Co 1.30% Verizon Communications Inc 1.16% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 29

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Morgan Growth Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 20 50 Total Return, % 75 0 100 -20 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 Up/Down Market Capture Ratio -40 Apr-10 - Mar-13 250 -60 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Morgan Growth Adm S&P 500 Growth 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Morgan Growth Adm 33.91 10.61 9.31 11.32 11.36 -41.33 36.31 18.90 -2.42 15.25 S&P 500 Growth 27.08 6.97 1.14 11.01 9.13 -34.92 31.57 15.05 4.65 14.61 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 1 1.0 20 9 0 0.9 18 0 25 50 75 100 125 150 175 200 225 250 0 8 Down Mkt Capture Ratio, % 0.8 16 -1 7 Excess Annualized StdDev, % Morningstar Large Growth Universe Vanguard Morgan Growth Adm Total Annualized StdDev, % 0.7 14 -2 6 S&P 500 Growth 0.6 12 Sharpe Ratio Alpha, % -3 5 0.5 10 -4 4 Return vs. Risk 0.4 8 -5 3 Apr-10 - Mar-13 0.3 6 25 -6 2 0.2 4 -7 0.1 2 1 20 Total Annualized Return, % -8 0.0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 15 Vanguard Morgan Growth Adm S&P 500 Growth 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 Morgan Growth Adm -3.36 1.16 95.43 0.71 17.21 4.35 5 S&P 500 Growth 0.00 1.00 100.00 0.93 14.50 0.00 Universe(5%) 0.45 1.28 97.27 0.92 19.55 8.38 0 Universe(25%) -1.86 1.17 95.64 0.79 17.66 5.46 0 5 10 15 20 25 30 35 Universe(Median) -3.36 1.12 94.20 0.70 16.77 4.44 Total Annualized StdDev, % Universe(75%) -4.72 1.06 91.79 0.62 15.85 3.70 Morningstar Large Growth Universe Vanguard Morgan Growth Adm Universe(95%) -7.73 0.93 85.62 0.45 13.96 2.78 Cash S&P 500 Growth City of Dover, Delaware General Employee Pension Plan 30

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard PRIMECAP Inv 2.69 % Cash Portfolio Information Investment Strategy Summary 12.97 % US Stocks Ticker VPMCX % Bonds Morningstar Category Large Growth % Non-US Stocks Avg Mkt Cap $MM 44923.70 The investment seeks long-term capital appreciation. The fund invests in stocks % Pref Cat Med Mkt Cap $MM 37831.31 considered to have above-average earnings growth potential that is not reflected in % Conv Net Assets $MM 33077.98 their current market prices. Its portfolio consists predominantly of large- and % Other mid-capitalization stocks. Turnover Ratio 6.00 % Non-US Bonds % Assets in Top 10 Holdings 41.14 _________________________________________________________________________ Total Number of Holdings 121.00 Manager Name Theo A. Kolokotrones 84.34 Manager Tenure 27.85 Fund Incept Date 11/01/1984 Prospectus Exp Ratio 0.45 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 86.67 % Cash 2.69 Closed to New Investors Yes 20 % Canada 2.70 % US Stocks 84.34 % Latin America 0.29 % Bonds 0.00 18 % United Kingdom 0.79 % Non-US Stocks 12.97 % Eurozone 0.92 % Pref 0.00 Portfolio Ratings 16 % Europe - ex Euro 8.24 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating 14 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 27 % Middle East 0.00 5 Year Mstar Rating 12 % Japan 0.39 % Rank Cat 5 Yr 17 % Australasia 0.00 10 Year Mstar Rating 10 % Asia - Developed 0.00 % Rank Cat 10 Yr 5 % Asia - Emerging 0.00 8 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 6 % Basic Materials 3.70 Avg Eff Duration NA 2 300 % Communication Services 2.31 Effective Maturity NA 4 % Consumer Cyclical 5.07 Avg Credit Quality NA % Consumer Defensive 0.98 US Govt/ Agency NA 2 250 % Healthcare 31.62 AAA NA % Industrials 14.36 AA NA 0 % Real Estate 0.00 A NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 31.08 BBB NA 200 % Energy 4.99 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 5.75 B NA Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard PRIMECAP Inv S&P 500 Growth % Utilities 0.14 Below B NA NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Amgen Inc 5.98% 100 Vanguard PRIMECAP Inv 14.16 14.16 19.23 12.09 7.30 Biogen Idec Inc 5.95% S&P 500 Growth 9.33 9.33 11.61 13.31 7.48 Google, Inc. Class A 4.13% Universe(5%) 11.79 11.79 15.12 14.54 9.70 Eli Lilly and Company 4.13% 50 Universe(25%) 9.87 9.87 10.80 12.27 7.03 Roche Holding AG 4.08% Universe(Median) 8.76 8.76 8.25 10.97 5.52 FedEx Corporation 3.85% Texas Instruments, Inc. 3.45% Universe(75%) 7.67 7.67 5.70 9.63 4.00 Microsoft Corporation 3.34% Universe(95%) 5.87 5.87 2.08 6.58 1.24 0 0 Novartis AG ADR 3.18% Adobe Systems Inc 3.05% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 31

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard PRIMECAP Inv Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 20 50 Total Return, % 75 0 100 -20 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 Up/Down Market Capture Ratio -40 Apr-10 - Mar-13 250 -60 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard PRIMECAP Inv S&P 500 Growth 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard PRIMECAP Inv 37.75 18.31 8.49 12.30 11.49 -32.41 34.45 12.89 -1.84 15.27 S&P 500 Growth 27.08 6.97 1.14 11.01 9.13 -34.92 31.57 15.05 4.65 14.61 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 1 1.0 20 9 0 0.9 18 0 25 50 75 100 125 150 175 200 225 250 0 8 Down Mkt Capture Ratio, % 0.8 16 -1 7 Excess Annualized StdDev, % Morningstar Large Growth Universe Vanguard PRIMECAP Inv Total Annualized StdDev, % 0.7 14 -2 6 S&P 500 Growth 0.6 12 Sharpe Ratio Alpha, % -3 5 0.5 10 -4 4 Return vs. Risk 0.4 8 -5 3 Apr-10 - Mar-13 0.3 6 25 -6 2 0.2 4 -7 0.1 2 1 20 Total Annualized Return, % -8 0.0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 15 Vanguard PRIMECAP Inv S&P 500 Growth 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 PRIMECAP Inv -1.81 1.07 94.08 0.79 15.99 4.02 5 S&P 500 Growth 0.00 1.00 100.00 0.93 14.50 0.00 Universe(5%) 0.45 1.28 97.27 0.92 19.55 8.38 0 Universe(25%) -1.86 1.17 95.64 0.79 17.66 5.46 0 5 10 15 20 25 30 35 Universe(Median) -3.36 1.12 94.20 0.70 16.77 4.44 Total Annualized StdDev, % Universe(75%) -4.72 1.06 91.79 0.62 15.85 3.70 Morningstar Large Growth Universe Vanguard PRIMECAP Inv Universe(95%) -7.73 0.93 85.62 0.45 13.96 2.78 Cash S&P 500 Growth City of Dover, Delaware General Employee Pension Plan 32

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Mid-Cap Value Index Admiral 1.87 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VMVAX % Bonds Morningstar Category Mid-Cap Value % Non-US Stocks Avg Mkt Cap $MM 6009.18 The investment seeks to track the performance of a benchmark index that measures the % Pref Cat Med Mkt Cap $MM 7410.40 investment return of mid-capitalization value stocks. The fund employs an indexing % Conv Net Assets $MM 3166.27 investment approach designed to track the performance of the MSCI US Mid Cap Value % Other Index, a broadly diversified index of value stocks of mid-size U.S. companies. It Turnover Ratio 33.00 % Non-US Bonds attempts to replicate the target index by investing all, or substantially all, of its assets % Assets in Top 10 Holdings 8.82 in the stocks that make up the index, holding each stock in approximately the same Total Number of Holdings 256.00 proportion as its weighting in the index. Manager Name Donald M. Butler Manager Tenure 6.62 _________________________________________________________________________ 97.95 Fund Incept Date 08/17/2006 Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 98.13 % Cash 0.18 Closed to New Investors No 25 % Canada 0.00 % US Stocks 97.95 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.27 % Non-US Stocks 1.87 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 20 % Europe - ex Euro 1.38 % 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 28 % Middle East 0.00 5 Year Mstar Rating 15 % Japan 0.00 % Rank Cat 5 Yr 28 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.22 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 7.23 Avg Eff Duration NA 3 250 % Communication Services 1.19 Effective Maturity NA 5 % Consumer Cyclical 11.93 Avg Credit Quality NA 225 % Consumer Defensive 8.45 US Govt/ Agency NA % Healthcare 5.11 AAA NA 200 % Industrials 13.46 AA NA 0 % Real Estate 9.26 A NA 3 Months YTD 1 Year 3 Years 5 Years 175 % Technology 10.09 BBB NA 2 % Energy 6.82 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio 150 % Financial Services 16.18 B NA Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Mid-Cap Value Index Admiral MSCI US Mid Cap 450 Index USD % Utilities 10.29 Below B NA NR/NA NA 125 Turnover 100 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Mattel, Inc. 1.03% 1 75 Vanguard Mid-Cap Value Index Admiral 14.31 14.31 19.25 13.64 8.88 Host Hotels & Resorts Inc 0.93% MSCI US Mid Cap 450 Index USD 13.34 13.34 15.95 14.27 8.18 Watson Pharmaceuticals Inc. 0.90% Universe(5%) 15.72 15.72 23.59 16.61 10.86 Seagate Technology PLC 0.90% 50 Universe(25%) 13.45 13.45 18.34 14.58 9.01 Bunge Ltd 0.87% Universe(Median) 12.79 12.79 16.77 13.05 7.67 Eastman Chemical Company 0.86% 25 DTE Energy Holding Company 0.85% Universe(75%) 11.11 11.11 13.35 11.61 5.78 Pentair Ltd 0.85% Universe(95%) 6.65 6.65 6.27 5.84 1.76 0 0 Regions Financial Corporation 0.83% American Capital Agency Corp. 0.81% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 33

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Mid-Cap Value Index Admiral Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 40 50 Total Return, % 20 75 0 100 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -20 Up/Down Market Capture Ratio -40 Apr-10 - Mar-13 250 -60 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Mid-Cap Value Index Admiral MSCI US Mid Cap 450 Index USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Mid-Cap Value Index Admiral NA NA NA NA -4.30 -36.56 37.70 21.78 -0.32 16.02 MSCI US Mid Cap 450 Index USD 39.05 20.52 13.94 13.75 6.19 -41.80 40.49 25.69 -1.91 16.04 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 4 1.1 25 11 0 3 1.0 10 0 25 50 75 100 125 150 175 200 225 2 0.9 9 Down Mkt Capture Ratio, % 20 Excess Annualized StdDev, % 1 0.8 8 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Total Annualized StdDev, % MSCI US Mid Cap 450 Index USD 0 0.7 7 15 Sharpe Ratio Alpha, % -1 0.6 6 -2 0.5 5 Return vs. Risk 10 -3 0.4 4 Apr-10 - Mar-13 -4 0.3 3 25 -5 0.2 5 2 20 -6 0.1 1 Total Annualized Return, % -7 0.0 0 0 15 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 10 Vanguard Mid-Cap Value Index Admiral MSCI US Mid Cap 450 Index USD 5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 0 Vanguard Mid-Cap Value Index Admiral 0.12 0.95 98.05 0.85 16.62 2.51 MSCI US Mid Cap 450 Index USD 0.00 1.00 100.00 0.85 17.41 0.00 -5 Universe(5%) 3.00 1.27 99.25 1.04 22.60 10.02 -10 Universe(25%) 0.22 1.07 98.51 0.85 18.97 5.72 0 5 10 15 20 25 30 35 40 Universe(Median) -0.97 1.02 96.61 0.79 17.95 3.91 Total Annualized StdDev, % Universe(75%) -2.69 0.93 93.90 0.69 16.96 2.32 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Universe(95%) -6.07 0.73 83.44 0.47 13.44 1.62 Cash MSCI US Mid Cap 450 Index USD City of Dover, Delaware General Employee Pension Plan 34

Quarterly Investment Monitor Data as of 03/31/2013 Target Small Capitalization Value T 5.74 1.99 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker TASVX % Bonds Morningstar Category Small Value % Non-US Stocks Avg Mkt Cap $MM 1993.33 The investment seeks above-average capital appreciation. The Portfolio seeks % Pref Cat Med Mkt Cap $MM 1301.69 investments that will increase in value. It normally invests at least 80% of its investable % Conv Net Assets $MM 1421.95 assets in common stocks of small companies. Small companies are those companies with % Other market capitalizations comparable to those in the Russell 2000 Value Index. As of Turnover Ratio 37.00 % Non-US Bonds December 31, 2012, the Russell 2000 Value Index median market capitalization was % Assets in Top 10 Holdings 8.61 approximately $472 million and the largest company by market capitalization was $4.664 Total Number of Holdings 655.00 billion. Market capitalization is measured at the time of purchase. Manager Name Paul E. Viera, Jr. Manager Tenure 11.25 _________________________________________________________________________ 91.86 Fund Incept Date 01/05/1993 Prospectus Exp Ratio 0.68 Phone Number 800-225-1852 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 97.88 % Cash 5.74 Closed to New Investors No 25 % Canada 1.04 % US Stocks 91.86 % Latin America 0.15 % Bonds 0.00 % United Kingdom 0.03 % Non-US Stocks 1.99 % Eurozone 0.69 % Pref 0.00 Portfolio Ratings 20 % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 0.00 % Other 0.41 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 32 % Middle East 0.22 5 Year Mstar Rating 15 % Japan 0.00 % Rank Cat 5 Yr 34 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 9 % Asia - Emerging 0.00 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 7.07 Avg Eff Duration NA 2 200 % Communication Services 0.47 Effective Maturity NA 5 % Consumer Cyclical 11.62 Avg Credit Quality NA 180 % Consumer Defensive 4.66 US Govt/ Agency NA % Healthcare 6.77 AAA NA 160 % Industrials 25.45 AA NA 0 % Real Estate 6.01 A NA 3 Months YTD 1 Year 3 Years 5 Years 140 % Technology 8.52 BBB NA % Energy 6.64 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio 120 % Financial Services 18.01 B NA Median to 75th Percentile 75th to 95th Percentile Ratio Target Small Capitalization Value T S&P 600 Index % Utilities 4.78 Below B NA NR/NA NA 1 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Bristow Group, Inc. 1.17% Target Small Capitalization Value T 12.37 12.37 16.26 13.23 8.96 60 Aaron's, Inc. 1.16% S&P 600 Index 11.81 11.81 16.14 15.18 9.19 Teleflex Inc. 0.92% Universe(5%) 15.21 15.21 22.27 17.69 12.25 Lufkin Industries, Inc. 0.82% 40 Universe(25%) 13.18 13.18 17.89 14.84 9.26 Cash America International Inc 0.81% Universe(Median) 12.30 12.30 15.72 13.41 8.08 Raymond James Financial Inc 0.80% 20 Hexcel Corporation 0.74% Universe(75%) 11.41 11.41 13.54 11.72 6.55 Littelfuse Inc. 0.73% Universe(95%) 7.60 7.60 4.96 7.26 3.82 0 0 Silgan Holdings, Inc. 0.73% Trustmark Corporation 0.73% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 35

Quarterly Investment Monitor Data as of 03/31/2013 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 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -20 Up/Down Market Capture Ratio -40 Apr-10 - Mar-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, % Target Small Capitalization Value T S&P 600 Index 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 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 Index 38.79 22.65 7.68 15.12 -0.30 -31.07 25.57 26.31 1.02 16.33 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 2 1.0 25 10 0 0.9 9 0 25 50 75 100 125 150 175 200 225 1 Down Mkt Capture Ratio, % 0.8 20 8 0 Excess Annualized StdDev, % Morningstar SmallCap Blend Universe Target Small Capitalization Value T Total Annualized StdDev, % 0.7 7 -1 S&P 600 Index 0.6 15 6 Sharpe Ratio Alpha, % -2 0.5 5 -3 Return vs. Risk 0.4 10 4 -4 Apr-10 - Mar-13 0.3 3 25 -5 0.2 5 2 -6 0.1 1 20 Total Annualized Return, % -7 0.0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 15 Target Small Capitalization Value T S&P 600 Index 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 -0.62 0.92 97.88 0.80 17.42 3.00 5 S&P 600 Index 0.00 1.00 100.00 0.84 18.83 0.00 Universe(5%) 1.54 1.20 99.40 0.91 23.96 9.14 0 Universe(25%) -0.46 1.08 98.53 0.80 20.68 5.23 0 5 10 15 20 25 30 35 40 45 Universe(Median) -1.89 1.03 97.08 0.73 19.87 3.82 Total Annualized StdDev, % Universe(75%) -3.57 0.98 94.44 0.64 18.69 2.63 Morningstar SmallCap Blend Universe Target Small Capitalization Value T Universe(95%) -6.98 0.83 85.23 0.46 16.47 1.88 Cash S&P 600 Index City of Dover, Delaware General Employee Pension Plan 36

Quarterly Investment Monitor Data as of 03/31/2013 American Funds New Perspective R6 5.58 2.08 % Cash Portfolio Information Investment Strategy Summary 38.72 % US Stocks Ticker RNPGX % Bonds Morningstar Category World Stock % Non-US Stocks Avg Mkt Cap $MM 43028.76 The investment seeks long-term growth of capital; future income is a secondary % Pref Cat Med Mkt Cap $MM 25969.20 objective. The fund seeks to take advantage of investment opportunities generated by % Conv Net Assets $MM 46232.90 changes in international trade patterns and economic and political relationships by % Other investing in common stocks of companies located around the world. In pursuing its Turnover Ratio 16.00 % Non-US Bonds primary investment objective, it invests primarily in common stocks that the investment % Assets in Top 10 Holdings 18.53 adviser believes have the potential for growth. In pursuing its secondary objective, the Total Number of Holdings 264.00 fund invests in common stocks of companies with the potential to pay dividends in the Manager Name Gregg E. Ireland future. 53.33 Manager Tenure 20.34 Fund Incept Date 03/13/1973 _________________________________________________________________________ Prospectus Exp Ratio 0.46 Phone Number 800-421-4225 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 42.07 % Cash 5.58 Closed to New Investors No 18 % Canada 3.44 % US Stocks 38.72 % Latin America 1.42 % Bonds 0.29 16 % United Kingdom 8.93 % Non-US Stocks 53.33 % Eurozone 15.13 % Pref 0.00 Portfolio Ratings 14 % Europe - ex Euro 12.60 % Conv 0.00 Mstar Rating Total Annualized Return, % 3 Year Mstar Rating 12 % Europe - Emerging 0.00 % Other 2.08 % Africa 3.44 % Non-US Bonds 0.00 % Rank Cat 3 Yr 26 10 % Middle East 0.00 5 Year Mstar Rating % Japan 4.57 % Rank Cat 5 Yr 22 8 % Australasia 1.98 10 Year Mstar Rating % Asia - Developed 5.37 % Rank Cat 10 Yr 19 6 % Asia - Emerging 1.07 4 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 2 % Basic Materials 7.63 Avg Eff Duration NA 3 225 % Communication Services 2.79 Effective Maturity NA 0 % Consumer Cyclical 17.78 Avg Credit Quality NA 200 % Consumer Defensive 12.47 US Govt/ Agency NA -2 % Healthcare 17.33 AAA NA 175 % Industrials 12.85 AA NA -4 % Real Estate 0.00 A NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 11.10 BBB NA 2 150 % Energy 6.07 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 11.36 B NA Median to 75th Percentile 75th to 95th Percentile Ratio 125 American Funds New Perspective R6 MSCI AC World Index ND USD % Utilities 0.62 Below B NA NR/NA NA Turnover 100 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Novo Nordisk A/S 4.98% 1 75 American Funds New Perspective R6 6.30 6.30 13.16 9.64 4.53 Amazon.com Inc 2.35% MSCI AC World Index ND USD 6.50 6.50 10.55 7.78 2.06 Google, Inc. Class A 1.71% 50 Universe(5%) 10.58 10.58 17.66 13.38 6.66 Home Depot, Inc. 1.67% Universe(25%) 8.41 8.41 13.44 9.66 4.49 Naspers Ltd 1.42% Universe(Median) 7.09 7.09 11.94 8.16 2.67 Nestle SA 1.36% 25 Shoprite Holdings Ltd 1.31% Universe(75%) 5.67 5.67 7.86 6.08 0.90 Taiwan Semiconductor Manufacturing 1.27% Universe(95%) 0.52 0.52 -0.55 1.29 -2.27 0 0 British American Tobacco PLC 1.25% ACE Ltd 1.21% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 37

Quarterly Investment Monitor Data as of 03/31/2013 American Funds New Perspective R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 20 50 Total Return, % 75 0 100 -20 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 Up/Down Market Capture Ratio -40 Apr-10 - Mar-13 140 -60 120 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 100 Up Mkt Capture Ratio, % American Funds New Perspective R6 MSCI AC World Index ND USD 80 60 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 40 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 20 0 -20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error -40 8 1.1 22 12 -60 1.0 20 0 20 40 60 80 100 120 140 160 180 6 0.9 18 10 Down Mkt Capture Ratio, % 4 Excess Annualized StdDev, % 0.8 16 Morningstar World Stock Universe American Funds New Perspective R6 Total Annualized StdDev, % 8 MSCI AC World Index ND USD 2 0.7 14 Sharpe Ratio Alpha, % 0.6 12 0 6 0.5 10 Return vs. Risk -2 0.4 8 4 Apr-10 - Mar-13 0.3 6 20 -4 0.2 4 2 15 -6 0.1 2 Total Annualized Return, % 10 -8 0.0 0 0 5 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 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 2.12 0.94 98.08 0.65 16.08 2.45 MSCI AC World Index ND USD 0.00 1.00 100.00 0.52 16.96 0.00 -15 Universe(5%) 7.52 1.18 98.07 1.01 20.88 11.32 -20 Universe(25%) 2.26 1.08 96.59 0.67 19.21 7.15 0 5 10 15 20 25 30 35 Universe(Median) 0.45 1.01 94.43 0.52 17.64 4.97 Total Annualized StdDev, % Universe(75%) -1.93 0.86 86.67 0.39 16.08 3.69 Morningstar World Stock Universe American Funds New Perspective R6 Universe(95%) -6.67 0.61 69.26 0.16 12.06 2.45 Cash MSCI AC World Index ND USD City of Dover, Delaware General Employee Pension Plan 38

Quarterly Investment Monitor Data as of 03/31/2013 Harding Loevner Global Equity Inst 2.96 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker HLMVX % Bonds Morningstar Category World Stock % Non-US Stocks Avg Mkt Cap $MM 32194.95 The investment seeks long-term capital appreciation. The fund invests in companies 51.71 % Pref Cat Med Mkt Cap $MM 25969.20 based in the U.S. and other developed markets, as well as in emerging and frontier % Conv Net Assets $MM 482.53 markets. It invests at least 80% of net assets in common stocks, preferred stock, rights % Other and warrants issued by companies that are based both inside and outside the United Turnover Ratio 32.00 % Non-US Bonds States, securities convertible into such securities and investment companies that invest % Assets in Top 10 Holdings 27.28 45.33 in the types of securities in which the fund would normally invest. The fund normally Total Number of Holdings 67.00 holds 35-75 investments across at least 15 countries. Manager Name Ferrill Roll Manager Tenure 12.17 _________________________________________________________________________ Fund Incept Date 11/29/1996 Prospectus Exp Ratio 0.95 Phone Number 877-435-8105 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 53.29 % Cash 2.96 Closed to New Investors No 18 % Canada 0.00 % US Stocks 51.71 % Latin America 2.90 % Bonds 0.00 16 % United Kingdom 6.37 % Non-US Stocks 45.33 % Eurozone 8.24 % Pref 0.00 Portfolio Ratings 14 % Europe - ex Euro 7.35 % Conv 0.00 Mstar Rating Total Annualized Return, % 3 Year Mstar Rating 12 % Europe - Emerging 2.45 % Other 0.00 % Africa 1.32 % Non-US Bonds 0.00 % Rank Cat 3 Yr 60 10 % Middle East 0.00 5 Year Mstar Rating % Japan 9.36 % Rank Cat 5 Yr 37 8 % Australasia 1.61 10 Year Mstar Rating % Asia - Developed 2.02 % Rank Cat 10 Yr 44 6 % Asia - Emerging 5.09 4 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality 2 % Basic Materials 3.79 Avg Eff Duration NA 3 225 % Communication Services 2.77 Effective Maturity NA 0 % Consumer Cyclical 17.09 Avg Credit Quality NA 200 % Consumer Defensive 11.99 US Govt/ Agency NA -2 % Healthcare 7.32 AAA NA 175 % Industrials 12.41 AA NA -4 % Real Estate 0.00 A NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 20.22 BBB NA 2 150 % Energy 6.05 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 18.36 B NA Median to 75th Percentile 75th to 95th Percentile Ratio 125 Harding Loevner Global Equity Inst MSCI AC World Index ND USD % Utilities 0.00 Below B NA NR/NA NA Turnover 100 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years eBay Inc 3.64% 1 75 Harding Loevner Global Equity Inst 4.71 4.71 6.08 7.73 3.68 Wells Fargo & Co 3.47% MSCI AC World Index ND USD 6.50 6.50 10.55 7.78 2.06 Unicharm Corp 2.84% 50 Universe(5%) 10.58 10.58 17.66 13.38 6.66 Nestle SA ADR 2.83% Universe(25%) 8.41 8.41 13.44 9.66 4.49 Fanuc Corp 2.74% Universe(Median) 7.09 7.09 11.94 8.16 2.67 Microsoft Corporation 2.50% 25 Schlumberger NV 2.44% Universe(75%) 5.67 5.67 7.86 6.08 0.90 Standard Chartered PLC 2.38% Universe(95%) 0.52 0.52 -0.55 1.29 -2.27 0 0 Emerson Electric Co. 2.33% Dassault Systemes SA 2.11% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 39

Quarterly Investment Monitor Data as of 03/31/2013 Harding Loevner Global Equity Inst Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 20 50 Total Return, % 75 0 100 -20 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 Up/Down Market Capture Ratio -40 Apr-10 - Mar-13 140 -60 120 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 100 Up Mkt Capture Ratio, % Harding Loevner Global Equity Inst MSCI AC World Index ND USD 80 60 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 40 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 20 0 -20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error -40 8 1.1 22 12 -60 1.0 20 0 20 40 60 80 100 120 140 160 180 6 0.9 18 10 Down Mkt Capture Ratio, % 4 Excess Annualized StdDev, % 0.8 16 Morningstar World Stock Universe Harding Loevner Global Equity Inst Total Annualized StdDev, % 8 MSCI AC World Index ND USD 2 0.7 14 Sharpe Ratio Alpha, % 0.6 12 0 6 0.5 10 Return vs. Risk -2 0.4 8 4 Apr-10 - Mar-13 0.3 6 20 -4 0.2 4 2 15 -6 0.1 2 Total Annualized Return, % 10 -8 0.0 0 0 5 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 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 0.36 0.94 95.25 0.53 16.37 3.70 MSCI AC World Index ND USD 0.00 1.00 100.00 0.52 16.96 0.00 -15 Universe(5%) 7.52 1.18 98.07 1.01 20.88 11.32 -20 Universe(25%) 2.26 1.08 96.59 0.67 19.21 7.15 0 5 10 15 20 25 30 35 Universe(Median) 0.45 1.01 94.43 0.52 17.64 4.97 Total Annualized StdDev, % Universe(75%) -1.93 0.86 86.67 0.39 16.08 3.69 Morningstar World Stock Universe Harding Loevner Global Equity Inst Universe(95%) -6.67 0.61 69.26 0.16 12.06 2.45 Cash MSCI AC World Index ND USD City of Dover, Delaware General Employee Pension Plan 40

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Emerging Mkts Stock Idx I 1.79 % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VEMIX % Bonds Morningstar Category Diversified Emerging Mkts % Non-US Stocks Avg Mkt Cap $MM 20088.91 The investment seeks to track the performance of a benchmark index that measures the % Pref Cat Med Mkt Cap $MM 15735.51 investment return of stocks issued by companies located in emerging market countries. % Conv Net Assets $MM 74586.62 The fund employs an indexing investment approach by investing substantially all % Other (approximately 95%) of its assets in the common stocks included in the FTSE Emerging Turnover Ratio 8.00 % Non-US Bonds Transition Index, while employing a form of sampling to reduce risk. The FTSE Emerging % Assets in Top 10 Holdings 13.91 Transition Index is a "dynamic" index that represents the components of the FTSE Total Number of Holdings 1111.00 Emerging Index plus South Korean equity exposure. Manager Name Michael Perre Manager Tenure 4.59 _________________________________________________________________________ 96.11 Fund Incept Date 05/04/1994 Prospectus Exp Ratio 0.12 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 0.31 % Cash 0.86 Closed to New Investors No 12 % Canada 0.00 % US Stocks 0.30 % Latin America 20.57 % Bonds 0.00 10 % United Kingdom 0.00 % Non-US Stocks 96.11 % Eurozone 0.00 % Pref 0.94 Portfolio Ratings 8 % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating Total Annualized Return, % % Europe - Emerging 9.28 % Other 1.79 3 Year Mstar Rating % Africa 8.31 % Non-US Bonds 0.00 % Rank Cat 3 Yr 58 6 % Middle East 0.05 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 44 4 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 25.02 % Rank Cat 10 Yr 38 % Asia - Emerging 36.45 2 0 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 11.88 Avg Eff Duration NA 3 200 -2 % Communication Services 8.38 Effective Maturity NA % Consumer Cyclical 8.42 Avg Credit Quality NA 180 % Consumer Defensive 8.29 US Govt/ Agency NA -4 % Healthcare 1.08 AAA NA 160 % Industrials 7.65 AA NA -6 % Real Estate 1.83 A NA 3 Months YTD 1 Year 3 Years 5 Years 140 % Technology 14.23 BBB NA 2 % Energy 10.96 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio 120 % Financial Services 24.27 B NA Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard Emerging Mkts Stock Idx I MSCI EM NR USD % Utilities 3.01 Below B NA NR/NA NA 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Samsung Electronics Co Ltd GDR 2.53% 1 60 Vanguard Emerging Mkts Stock Idx I -2.58 -2.58 1.58 3.07 0.87 China Mobile Ltd. 1.80% MSCI EM NR USD -1.62 -1.62 1.96 3.27 1.09 China Construction Bank Corp H Shares 1.50% Universe(5%) 2.77 2.77 10.41 7.86 5.11 Taiwan Semiconductor Manufacturing ADR 1.34% 40 Universe(25%) 0.92 0.92 5.22 4.90 1.75 Samsung Electronics Co Ltd 1.33% Universe(Median) -0.87 -0.87 3.37 3.43 0.26 Industrial And Commercial Bank Of China Ltd. 1.21% 20 America Movil, S.A.B. de C.V. 1.17% Universe(75%) -2.33 -2.33 0.79 1.15 -1.22 Gazprom OAO ADR 1.12% Universe(95%) -4.72 -4.72 -4.20 -3.26 -5.94 0 0 CNOOC, Ltd. 0.99% Mtn Group Limited 0.90% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 41

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Emerging Mkts Stock Idx I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 120 0 100 25 Total Return Rank, % 80 60 50 Total Return, % 40 75 20 0 100 -20 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -40 Up/Down Market Capture Ratio Apr-10 - Mar-13 -60 225 -80 200 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 175 Up Mkt Capture Ratio, % Vanguard Emerging Mkts Stock Idx I MSCI EM 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 MSCI EM NR USD 55.82 25.55 34.00 32.14 39.42 -53.33 78.50 18.88 -18.42 18.22 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 5 0.5 25 9 0 4 0 25 50 75 100 125 150 175 200 225 8 3 0.4 Down Mkt Capture Ratio, % 20 7 2 Excess Annualized StdDev, % Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Total Annualized StdDev, % 1 0.3 6 MSCI EM NR USD 15 Sharpe Ratio 0 Alpha, % 5 -1 0.2 -2 4 Return vs. Risk 10 -3 0.1 3 Apr-10 - Mar-13 -4 15 2 5 -5 0.0 1 10 -6 Total Annualized Return, % -7 -0.1 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Emerging Mkts Stock Idx I MSCI EM NR USD 0 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -5 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Emerging Mkts Stock Idx I -0.15 1.01 97.99 0.24 21.51 3.05 -10 MSCI EM NR USD 0.00 1.00 100.00 0.25 21.12 0.00 Universe(5%) 4.65 1.12 98.01 0.48 24.20 8.57 -15 Universe(25%) 1.76 1.03 97.02 0.34 22.12 5.38 0 5 10 15 20 25 30 35 40 45 50 Universe(Median) 0.30 1.00 95.84 0.26 21.39 4.59 Total Annualized StdDev, % Universe(75%) -2.01 0.93 94.46 0.16 20.27 3.86 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Universe(95%) -6.00 0.85 90.29 -0.05 18.54 3.03 Cash MSCI EM NR USD City of Dover, Delaware General Employee Pension Plan 42

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard REIT Index I % Cash Portfolio Information Investment Strategy Summary % US Stocks Ticker VGSNX % Bonds Morningstar Category Real Estate % Non-US Stocks Avg Mkt Cap $MM 8224.57 The investment seeks to provide a high level of income and moderate long-term capital % Pref Cat Med Mkt Cap $MM 8397.24 appreciation by tracking the performance of a benchmark index that measures the % Conv Net Assets $MM 34678.77 performance of publicly traded equity REITs. The fund employs an indexing investment % Other approach designed to track the performance of the MSCI US REIT Index. The index is Turnover Ratio 9.00 % Non-US Bonds composed of stocks of publicly traded equity real estate investment trusts (known as % Assets in Top 10 Holdings 45.45 REITs). It attempts to replicate the index by investing all, or substantially all, of its Total Number of Holdings 119.00 assets in the stocks that make up the index, holding each stock in approximately the Manager Name Gerard C. O'Reilly same proportion as its weighting in the index. Manager Tenure 16.89 99.39 Fund Incept Date 05/13/1996 _________________________________________________________________________ Prospectus Exp Ratio 0.08 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 0.61 Closed to New Investors No 25 % Canada 0.00 % US Stocks 99.39 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 20 % 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 10 % Middle East 0.00 5 Year Mstar Rating 15 % Japan 0.00 % Rank Cat 5 Yr 16 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 27 % Asia - Emerging 0.00 10 Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group Sector Allocation Credit Quality % Basic Materials 0.00 Avg Eff Duration NA 2 160 % Communication Services 0.00 Effective Maturity NA 5 % Consumer Cyclical 0.00 Avg Credit Quality NA 140 % Consumer Defensive 0.00 US Govt/ Agency NA % Healthcare 0.00 AAA NA % Industrials 0.00 AA NA 120 0 % Real Estate 100.00 A NA 3 Months YTD 1 Year 3 Years 5 Years % Technology 0.00 BBB NA % Energy 0.00 BB NA 100 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 0.00 B NA Median to 75th Percentile 75th to 95th Percentile Ratio Vanguard REIT Index I MSCI US REIT NR USD % Utilities 0.00 Below B NA NR/NA NA 1 80 Turnover 3 Year to 1 3 5 Top Ten Holdings 60 Performance Months Date Year Years Years Simon Property Group Inc 10.69% Vanguard REIT Index I 8.11 8.11 14.89 17.30 7.31 Public Storage 4.71% 40 MSCI US REIT NR USD 7.79 7.79 13.67 16.01 5.31 HCP Inc 4.56% Universe(5%) 9.12 9.12 22.41 18.77 10.67 Ventas Inc 4.26% Universe(25%) 7.47 7.47 14.76 16.92 7.05 Equity Residential 4.06% 20 Universe(Median) 6.60 6.60 12.66 16.11 6.19 Prologis Inc 3.75% Boston Properties Inc 3.56% Universe(75%) 5.92 5.92 11.91 15.18 4.30 Health Care REIT, Inc. 3.49% Universe(95%) 5.16 5.16 9.92 11.39 1.25 0 0 AvalonBay Communities Inc 3.39% Vornado Realty Trust 2.98% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware General Employee Pension Plan 43

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard REIT Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Apr-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Mar-13 -30 Up/Down Market Capture Ratio Apr-10 - Mar-13 -40 160 -50 140 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 120 Up Mkt Capture Ratio, % Vanguard REIT Index I MSCI US REIT NR USD 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 Vanguard REIT Index I 35.65 30.93 12.05 35.15 -16.38 -36.95 29.76 28.56 8.70 17.65 MSCI US REIT NR USD NA NA NA 34.18 -17.84 -39.05 26.27 26.97 7.48 16.47 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 5 2 22 11 0 20 10 0 20 40 60 80 100 120 140 160 4 18 9 Down Mkt Capture Ratio, % 3 Excess Annualized StdDev, % 16 8 Morningstar Real Estate Universe Vanguard REIT Index I Total Annualized StdDev, % 2 MSCI US REIT NR USD 14 7 Sharpe Ratio Alpha, % 1 12 6 1 10 5 0 Return vs. Risk 8 4 -1 Apr-10 - Mar-13 6 3 30 -2 4 2 -3 2 1 25 Total Annualized Return, % -4 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard REIT Index I MSCI US REIT NR USD 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard REIT Index I 1.14 1.00 99.99 1.02 17.02 0.21 5 MSCI US REIT NR USD 0.00 1.00 100.00 0.95 17.05 0.00 Universe(5%) 4.47 1.07 99.67 1.38 20.14 10.33 0 Universe(25%) 1.01 1.01 99.42 1.01 17.35 2.54 0 5 10 15 20 25 Universe(Median) 0.35 0.99 99.11 0.96 17.08 1.68 Total Annualized StdDev, % Universe(75%) -0.43 0.97 98.10 0.92 16.64 1.35 Morningstar Real Estate Universe Vanguard REIT Index I Universe(95%) -3.31 0.86 80.32 0.64 14.94 1.05 Cash MSCI US REIT NR USD City of Dover, Delaware General Employee Pension Plan 44

Quarterly Investment Monitor Data as of 03/31/2013 Glossary Alpha (3 Yr) % Assets in Top 10 Holdings Alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as The aggregate assets, expressed as a percentage, of the fund's top 10 portfolio holdings. This figure is meant to be a measure of portfolio measured by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a risk. Specifically, the higher the percentage, the more concentrated the fund is in a few companies or issues, and the more the fund is negative alpha indicates the portfolio has underperformed, given the expectations established by beta. susceptible to the market fluctuations in these few holdings. The figure is calculated from the most recent available fund holdings. Average Effective Duration Price/Book Ratio TTM A measure of a fund's interest-rate sensitivity--the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. The weighted average of the price/book ratios of all the stocks in a fund’s portfolio. The P/B ratio of a company is calculated by dividing Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while the market price of its stock by the company’s per-share book value. Stocks with negative book values are excluded from this calculation. shorter maturities and higher coupons shorten duration. The relationship between funds with different durations is straightforward: A In theory, a high P/B ratio indicates that the price of the stock exceeds the actual worth of the company's assets, while a low P/B ratio fund with a duration of 10 years is twice as volatile as a fund with a five-year duration. Morningstar prints an average effective indicates that the stock is a bargain. duration statistic that incorporates call, put, and prepayment possibilities. Price/Earnings Ratio TTM Average Effective Maturity The weighted average of the price/earnings ratios of the stocks in a fund’s portfolio. The P/E ratio of a stock is calculated by dividing the Average effective maturity is a weighted average of all the effective maturities of the bonds in a portfolio. Effective maturity takes into current price of the stock by its trailing 12 months’ earnings per share. In computing the average, Morningstar weights each portfolio consideration mortgage prepayments, puts, calls, adjustable coupons, and other features of individual bonds and is thus a more holding by the percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund’s final accurate measure of interest-rate sensitivity. Longer-maturity funds are generally considered more interest-rate sensitive than their P/E. shorter counterparts. R-Squared Beta Reflects the percentage of a fund’s movements that can be explained by movements in its benchmark index. An R-squared of 100 A measure of a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. Morningstar calculates beta by indicates that all movements of a fund can be explained by movements in the index. Thus, index funds that invest only in S&P 500 stocks comparing a fund’s excess return over Treasury bills to the market's excess return over Treasury bills, so a beta of 1.10 shows that will have an R-squared very close to 100. Conversely, a low R-squared indicates that very few of the fund’s movements can be explained the fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other by movements in its benchmark index. An R-squared measure of 35, for example, means that only 35% of the fund’s movements can be factors remain constant. Conversely, a beta of 0.85 indicates that the fund’s excess return is expected to perform 15% worse than explained by movements in the benchmark index. the market’s excess return during up markets and 15% better during down markets. Sharpe Ratio The Morningstar Rating The Sharpe Ratio is a risk-adjusted measure developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation Commonly called the Star Rating, is a measure of a fund's risk-adjusted return, relative to funds in its category. Funds are rated and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the portfolio’s historical risk-adjusted from one to five stars, with the best performers receiving five stars and the worst performers receiving a single star. performance. It can be used to compare two portfolios directly on how much excess return each portfolio achieved for a certain level of risk. Risk-adjusted return is calculated by subtracting a risk penalty from each fund total return, after accounting for all loads, sales charges, and redemption fees. The risk penalty is determined by the amount of variation in the fund's monthly return, with emphasis Standard Deviation on downward variation. The greater the variation, the larger the penalty. Funds are ranked within their categories and stars are assigned as follows: Top 10% five stars; Next 22.5% four stars; Middle 35% three stars; Next 22.5% two stars; Bottom 10% one Standard deviation is the statistical measurement of dispersion about an average, which depicts how widely a stock or portfolio’s returns star. varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that is most likely for a given investment. When a stock or portfolio has a high standard deviation, the predicted range of performance is wide, Audited Expense Ratio implying greater volatility. The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all Total Number of Holdings other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV . Sales charges are not included in the expense ratio. The total number of different holdings of a fund. This figure is meant to be a measure of portfolio risk. Specifically, the lower the figure, the more concentrated the fund is in a few companies or issues, and the more the fund is susceptible to the market fluctuations in these few Geometric Average Market Capitalization holdings. This figure also provides a context for the importance of % assets in top 10 holdings. The figure is calculated from the most recent available fund holdings. It does not include a fund’s short positions. Morningstar defines the overall "size" of a stock fund's portfolio as the geometric mean of the market capitalization for all of the stocks it owns. It's calculated by raising the market capitalization of each stock to a power equal to that stock's stake in the Total Return portfolio. The resulting numbers are multiplied together to produce the geometric mean of the market caps of the stocks in the portfolio, which is reported as average market capitalization. Expressed in percentage terms, Morningstar’s calculation of total return is determined each month by taking the change in monthly net This number is different from the fund's median market cap--the capitalization of the median stock in its portfolio. The geometric asset value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAV. Reinvestments are mean better identifies the portfolio's "center of gravity." That is, it provides more accurate insight into how market trends (as defined made using the actual reinvestment NAV, and daily payoffs are reinvested monthly. by capitalization) might affect the portfolio. Turnover Ratio Net Assets This is a measure of the fund’s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with The month-end net assets of the mutual fund, recorded in millions of dollars. Net-asset figures are useful in gauging a fund’s size, maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily agility, and popularity. They help determine whether a small company fund, for example, can remain in its investment-objective suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage category if its asset base reaches an ungainly size. of the portfolio’s holdings that have changed over the past year. 12-Month Yield City of Dover, Delaware General Employee Pension Plan 45 Also known as a distribution yield, Morningstar computes this figure by summing the trailing 12-month’s income distributions and dividing the sum by the last month’s ending NAV, plus any capital gains distributed over the same period. Income refers only to interest

Quarterly Investment Monitor Data as of 03/31/2013 Disclaimer This Milliman work product was prepared solely for the internal business use of City of Dover, Delaware General Employee Pension Plan. Milliman's work may not be provided to third parties without Milliman's prior written consent. The analysis in this report was prepared utilizing data from third parties and other sources including but not limited to internal computer software and databases. Reasonable care has been taken to assure the accuracy of the data contained herein, and comments are objectively stated and are based on facts gathered in good faith. These reports do not constitute investment advice with respect to the sale or disposition of individual securities. Unless explicitly stated in your Service Agreement, there should be no reliance on Milliman services to provide analysis or reporting on a daily basis, the changes to manager rankings, ratings or opinions thereon and are not intended to monitor investment manager compliance with individual security selection criteria, limits on security selection, and/or prohibitions to the holding of certain securities or security types. The One Year, Three Year, Five Year, and Ten Year rates of return are time-weighted annual rates. The One Month, Three Month, and Year to Date rates of return are rates for the period indicated. All returns include fund internal expenses, except sales charges, if any. The rates of return shown are for the mutual funds in which the retirement program participates, not for the plan specifically. Returns credited to individual accounts will vary due to the timing of contributions, transfers, and withdrawals. Past performance is no guarantee of future results. Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request. Milliman disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. City of Dover, Delaware General Employee Pension Plan 46