Attachment

POLICE PENSION BOARD AGENDA MAY 9, 2013 1:00 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 - Police Pension Board Meeting of February 14, 2013 2. Quarterly Performance Review (Quarter Ending March 31, 2013) (Milliman, Inc.) (Staff Recommends Acceptance of the Report) 3. Adjournment by 1:50 p.m. TO ASSURE THAT THERE WILL BE A QUORUM, PLEASE RSVP BY CONTACTING THE CITY CLERK’S OFFICE BY EMAIL AT CITYCLERK@DOVER.DE.US OR BY CALLING 736-7008 AS SOON AS POSSIBLE. /js S:\AGENDAS-MINUTES-PACKETS\Misc-Agendas\PENSION BOARDS\2013\05-09-2013 POLICE 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.

POLICE PENSION BOARD The Police Pension Board meeting was held on February 14, 2013 at 1:00 p.m. with Chairman Mullaney presiding. Members present were Mr. Bonar, Mr. Lynn, Chief Hosfelt, Mr. Stallings, Mr. Unterkofler, and Mr. Koenig. AGENDA ADDITIONS/DELETIONS By unanimous consent, the agenda was adopted as presented. Adoption of Minutes - Police Pension Board Meeting of November 8, 2012 Mr. Stallings moved for adoption of the minutes of the Police Pension Board meeting of November 8, 2012, seconded by Chief Hosfelt 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. In reviewing the Performance Summary, Mr. Marzinsky stated that as of December 31, 2012, the assets in the fund totaled approximately $10.78M, which was slightly reduced from the prior quarter total of $11.01M; however, he explained that this was due in part to regular pension payments of $374,000 for the quarter. He advised members that adjustments were made to the plan after the November meeting and the net return of the portfolio for the quarter was approximately 1.49%, which was slightly better than the plan index of 1.16%. The net return for the quarter was 1.42%. In regard to the Market Summary portion of the report, Mr. Marzinsky explained that both stocks and bonds had done well during the previous year and equity markets continued to increase in early 2013. He expressed “cautious optimism” about the 2013 markets, stating that corporate earnings were increased and unemployment was reduced slightly. Referring to Page 9 of the report, Mr. Marzinsky stated that the $0 amounts reflected the new investments added to the plan following the reallocation that occurred in November. He indicated that stock exposure had been reduced, with approximately 60% of funds in stocks and 40% bond investments, reminding members of the goal to retain the target return of approximately 6.5% but lower the level of stock investments and potential volatility. Mr. Marzinsky stated that Milliman would be developing projections regarding future markets; however, he did not feel that major rebalancing or reorganization would be recommended. Referring to Page 10 of the report, Mr. Marzinsky, stated that the majority of the investments were performing well with some slight underperformance of the market benchmarks. Noting that some investments had trailed the index slightly, he stated that they were performing well when compared to their peers and he did not recommend any major changes to the actively managed funds at this time. In regard to the passively managed funds listed on Page 11, he noted that the Tracking Error statistics for Vanguard were “somewhat off” due to Vanguard changing some of the underlying indexes used, but he stated no concerns in this regard.

POLICE PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 2 In reviewing the returns on Page 12 of the report, Mr. Marzinsky explained that fund performance had been good since the end of November when the allocation was put into place. Although the plan trailed the index slightly over the year to date, he noted that the return of approximately 10% on the assets of the plan for the year exceeded the 6.5% interest rate used to value the liability of the plan, so the funded status of the plan was improving. Mr. Marzinsky explained that the style maps on Pages 14-15 allowed for analysis of the consistency of the performance of plan investments and that all equity investments were performing consistently with their purpose for inclusion in the portfolio. He noted that the real estate investment was not designed to fit into a particular category but was a hedge for inflation. Mr. Marzinsky stated that Milliman would be coming out with their capital market assumptions in the next few days and would determine if the allocation should be “tweaked” and would report back to the Board if changes were needed to achieve the target return. He indicated that slight rebalancing may be suggested but did not anticipate major changes. Financial Activity for the Fiscal Year Ending June 30, 2012 and Results of Actuarial Study Mrs. Donna Mitchell, Controller/Treasurer, 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 Police Pension Plan. She explained that the information was from the City’s annual financial report and listed the assets of the fund, additions and deductions from last year, the funding status, and the current liability as shown by the actuary. She noted that the last page of the report contained a summary of the assets and liabilities for the General Pension Plan, Police Pension Plan, and the Other Post-Employment Benefits (OPEB) Trust. Responding to Mr. Mullaney regarding funds received from insurance premiums, Mrs. Mitchell explained that $561,772 was received in contributions from the State last year, as reflected on Page 3 of the report. She advised members that the State appropriates a lump sum each year, which the State Pension Office doles out to the various pension plans, and this amount may be reduced in the future, resulting in a reduction in the contribution that the City will receive. Mr. Mullaney stated his understanding that some of these funds would be used for the related purpose of health care. Chief Hosfelt stated that there had been discussion at the State level about increasing the amount of State tax on insurance premiums (which is used to fund police pensions) by 1/4 of 1% and attempts were being introduced to reduce this increase to 1/8 of 1%. Responding to Mr. Mullaney regarding the annual pension costs for the City, Mrs. Mitchell stated that the annual required contribution was $979,132, as reflected on Page 4, and this was adjusted for interest earned and interest payments, resulting in an annual pension cost of $1,005,735 for the fiscal year. City and State contributions totaled $668,274 and were combined with the increase or decrease (in this case a decrease of $337,461). The net pension asset at the beginning of the year was $535,811 and at the end of the year was $198,350. Mrs. Mitchell explained that if the annual required contribution is over-contributed, it accumulates to an asset, if it is under-contributed, it

POLICE PENSION BOARD MEETING OF FEBRUARY 14, 2013 PAGE 3 builds to a liability. She noted that the full liability is not recognized in the report, just the difference that should be paid on a year-to-year basis. She stated that the plan was still at an asset level; however, she advised Council that when the Comprehensive Annual Financial Report (CAFR) is presented, the City will have to contribute more to the fund in view of the reduction in the State’s contribution and that staff will consider how to make up this difference when the budget is developed. She noted that the City had always been able to fund the Police Pension Plan at 100% of the Annual Required Contribution because of the State contribution in the past; however, this would have to be budgeted for in the future. Responding to Mr. Mullaney, Mrs. Mitchell explained that health care for retirees is paid from the OPEB Trust and is not connected with the pension funds. Mr. Mullaney stated his understanding that the City of Dover would receive a yearly stipend from the State for health care for retired municipal officers that would offset the City’s cost. In response to Mr. Koenig, Mrs. Mitchell stated that the City had been contributing $95,000 per year to the plan, that this would have to be increased to between $200,000 and $400,000 in the future, and that she would be developing these numbers. She advised members of a $100,000 transfer from the State during the past week (the final COLA payment for the year) which would be added to the fund shortly. Mr. Stallings moved for adjournment, seconded by Mr. Koenig and unanimously carried. Meeting Adjourned at 1:23 P.M. Timothy Mullaney Chair TM/JS/mk/dd/tm S:\AGENDAS-MINUTES-PACKETS\Misc-Minutes\PENSION\2013\02-14-2013 Police Pension.wpd

Quarterly Investment Monitor Summary Report for the Quarter Ending March 31, 2013 Prepared for City of Dover, Delaware Police 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 Police 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 $11.05 million, up from $10.79 million as of 12/31/2012. During the quarter, the plan had contributions of roughly $228 thousand, withdrawals of approximately $382 thousand, and fees of $1,363,59. b. Performance of the plan portfolio, with a +3.91% net (+3.98% gross) return, was slightly above the Plan normal portfolio index performance of +3.70%. 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 4.00% 2-12%; target 7% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 3.00% 2-12%; target 7% 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 14.00% 9-19%; target 14% INTB Long Term Bonds LTB PIMCO Long Duration 8.50% 12-22%; target 17% LTB Long Term Bonds LTB Vanguard Long Duration 8.50% 12-22%; target 17% LTB Large Cap Value LCV Vanguard Equity Income 10.00% 5-15%; target 10% LCV Large Cap Growth LCG Vanguard Morgan Growth 5.00% 5-15%; target 10% LCG Large Cap Growth LCG Vanguard Primecap 5.00% 5-15%; target 10% LCG Mid Cap MCV Vanguard Mid Cap Value Index 5.00% 0-10%; target 5% MC Small Cap SCV Target Small Cap Value 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 Police Pension Plan Quarterly Return Summary POLICE-NET POLICE GROSS- Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 1/31/2013 $ 10,785,966.38 $ 166,238.86 $ 127,322.77 $ 450.56 $ 208,705.98 $ 11,033,137.89 1.96% 1.98% 2/28/2013 $ 11,033,137.89 $ - $ 127,522.77 $ 457.34 $ 65,068.79 $ 10,970,226.57 0.60% 0.62% 3/31/2013 $ 10,970,226.57 $ 61,525.00 $ 127,422.77 $ 455.69 $ 142,524.89 $ 11,046,398.00 1.31% 1.33% $ 227,763.86 $ 382,268.31 $ 1,363.59 $ 416,299.66 Quarterly Return 3.91% 3.98% 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 Police 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 Police 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 Total Return, % Growth of $100 7 120 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 Police 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 Growth of $100 140 Total Return, % 1 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 Police 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 Total Return, % Growth of $100 120 8 100 6 80 4 2 60 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 Police Pension Plan 6

Quarterly Investment Monitor International Market Commentary - 1st Quarter 2013 International - Quarter Jan-13 - Mar-13 9 8 International - Five Years 7 Total Return, % 6 Mar-08 - Mar-13 5 4 120 3 2 110 1 0 -1 100 -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 Police Pension Plan 7

Quarterly Investment Monitor Data as of 03/31/2013 Performance Summary City of Dover, Delaware Police 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 $606,852 5.49% $429,058 3.98% PISXX Vanguard Short-Term Bond Index Signal $218,812 1.98% $322,801 2.99% VBSSX Vanguard Interm-Term Bond Index Signal $1,545,845 13.98% $1,511,567 14.01% VIBSX Vanguard Inflation-Protected Secs I $220,284 1.99% $220,519 2.04% VIPIX Vanguard Long-Term Bond Index I $942,982 8.53% $921,303 8.54% VBLLX PIMCO Long Duration Total Return Instl $939,111 8.50% $917,209 8.50% PLRIX Target Small Capitalization Value T $554,485 5.02% $537,119 4.98% TASVX Vanguard Equity-Income Adm $1,103,152 9.98% $1,062,838 9.85% VEIRX Vanguard Morgan Growth Adm $549,209 4.97% $533,799 4.95% VMRAX Vanguard PRIMECAP Inv $556,332 5.03% $531,495 4.93% VPMCX Vanguard Mid-Cap Value Index Admiral $554,062 5.01% $535,853 4.97% VMVAX American Funds New Perspective R6 $542,436 4.91% $535,947 4.97% RNPGX Harding Loevner Global Equity Inst $548,217 4.96% $532,476 4.94% HLMVX Vanguard Emerging Mkts Stock Idx I $1,615,815 14.62% $1,649,658 15.29% VEMIX Vanguard REIT Index I $556,191 5.03% $545,398 5.06% VGSNX Plan Total $11,053,787 $10,787,041 City of Dover, Delaware Police 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 Target Small Capitalization Value T 53 30 -1.95 -0.24 0.93 0.91 28 27 24 20 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 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 Police 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 Police 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 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 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 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 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 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 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 POLICE GROSS-RETURN 3.98 3.98 7.63 7.13 5.07 NA N/A NA NA Total Plan POLICE-NET RETURN 3.91 3.91 7.33 6.83 4.77 NA N/A NA NA Police Plan Policy Index 3.70 3.70 8.06 8.53 4.78 7.71 N/A NA NA City of Dover, Delaware Police 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 Interm-Term Bond Index Signal Vanguard Inflation-Protected Secs I Vanguard Long-Term Bond Index I PIMCO Long Duration Total Return Instl City of Dover, Delaware Police 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 Target Small Capitalization Value T Vanguard Equity-Income Adm Vanguard Morgan Growth Adm Vanguard PRIMECAP Inv Vanguard Mid-Cap Value Index Admiral Vanguard REIT Index I City of Dover, Delaware Police 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 Police Pension Plan 15

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

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Short-Term Bond Index Signal 1.89 Portfolio Information Investment Strategy Summary 10.33 % Cash Ticker VBSSX % US Stocks Morningstar Category Short-term Bond % Bonds Avg Mkt Cap $MM NA The investment seeks to track the performance of a market-weighted bond index with a % Non-US Stocks Cat Med Mkt Cap $MM 8141.24 short-term dollar-weighted average maturity. The fund employs an indexing investment % Pref Net Assets $MM 28494.83 approach designed to track the performance of the Barclays Capital U.S. 1-5 Year % Conv Turnover Ratio 51.00 Government/Credit Float Adjusted Index. It invests by sampling the index. The fund % Other % Assets in Top 10 Holdings 14.25 invests at least 80% of assets in bonds held in the index. It maintains a dollar-weighted % Non-US Bonds Total Number of Holdings 1506.00 average maturity consistent with that of the index, which generally does not exceed 3 Manager Name Joshua C. Barrickman years. Manager Tenure 0.10 87.72 Fund Incept Date 03/01/1994 _________________________________________________________________________ Prospectus Exp Ratio 0.11 Phone Number 800-662-7447 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 1.89 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 Total Annualized Return, % Mstar Rating % 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 % Asia - Developed NA % Rank Cat 10 Yr 31 3 % Asia - Emerging NA 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % 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 % Healthcare NA AAA 74.17 250 % 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 % Energy NA BB 0.00 200 5th to 25th Percentile 25th to Median % Financial Services NA B 0.00 Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities NA Below B 0.00 NR/NA 0.00 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 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% Universe(25%) 0.54 0.54 3.69 3.44 4.22 US Treasury Note 1.75% 1.41% 50 Universe(Median) 0.37 0.37 2.52 2.73 3.27 US Treasury Note 2.375% 1.40% Universe(75%) 0.20 0.20 1.67 2.14 2.56 US Treasury Note 0.25% 1.35% Universe(95%) 0.04 0.04 0.82 1.20 1.34 US Treasury Note 0.625% 1.33% US Treasury Note 1% 1.27% 0 0 US Treasury Note 0.75% 1.24% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police 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 5 Total Return, % 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 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Total Annualized StdDev, % Excess Annualized StdDev, % 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD Alpha, % Sharpe Ratio 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 Universe(95%) -0.74 0.68 10.95 1.06 0.65 0.32 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Cash Barclays US Govt/Credit 1-3 Yr TR USD City of Dover, Delaware Police Pension Plan 18

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

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 Total Return Rank, % 9 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 1 Apr-10 - Mar-13 160 0 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 140 Up Mkt Capture Ratio, % 120 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 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 0.0 3 5 2 0 0 20 40 60 80 100 120 140 160 180 200 Down Mkt Capture Ratio, % -0.1 4 Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Total Annualized StdDev, % Excess Annualized StdDev, % -0.2 2 Barclays US Agg Float Adj TR USD 3 Alpha, % Sharpe Ratio -0.3 1 Return vs. Risk 2 -0.4 1 Apr-10 - Mar-13 9 1 -0.5 8 Total Annualized Return, % 7 -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 Universe(95%) -0.52 0.97 96.84 1.97 2.41 0.20 Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Cash Barclays US Agg Float Adj TR USD City of Dover, Delaware Police Pension Plan 20

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Inflation-Protected Secs I 1.59 Portfolio Information Investment Strategy Summary % Cash Ticker VIPIX % US Stocks Morningstar Category Inflation-Protected Bond % Bonds Avg Mkt Cap $MM NA The investment seeks to provide inflation protection and income consistent with % Non-US Stocks Cat Med Mkt Cap $MM 10795.85 investment in inflation-indexed securities. The fund invests at least 80% of its assets in % Pref Net Assets $MM 43147.94 inflation-indexed bonds issued by the U.S. government, its agencies and % Conv Turnover Ratio 33.00 instrumentalities, and corporations. It may invest in bonds of any maturity; however, its % Other % Assets in Top 10 Holdings 48.69 dollar-weighted average maturity is expected to be in the range of 7 to 20 years. At a % Non-US Bonds Total Number of Holdings 33.00 minimum, all bonds purchased by the fund will be rated "investment grade" or, if Manager Name Gemma Wright-Casparius unrated, will be considered by the advisor to be investment grade. Manager Tenure 1.62 Fund Incept Date 06/29/2000 _________________________________________________________________________ 98.41 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 1.59 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 Total Annualized Return, % Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 0.00 6 % Rank Cat 3 Yr 10 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 22 5 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 18 4 % Asia - Emerging NA 3 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % 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 % Healthcare NA AAA 100.00 250 0.8 % Industrials NA AA 0.00 -1 % Real Estate NA A 0.00 3 Months YTD 1 Year 3 Years 5 Years % Technology NA BBB 0.00 0.7 % Energy NA BB 0.00 200 5th to 25th Percentile 25th to Median % Financial Services NA B 0.00 Prospectus Exp Ratio 0.6 Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities NA Below B 0.00 NR/NA 0.00 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 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 Universe(25%) -0.17 -0.17 5.81 8.44 5.70 US Treasury Note 0.125% 5.17% 50 Universe(Median) -0.42 -0.42 5.26 8.09 5.45 US Treasury Note 4.88% 0.1 Universe(75%) -0.53 -0.53 4.95 7.75 4.89 US Treasury Bond 3.875% 4.21% Universe(95%) -0.96 -0.96 2.43 5.35 3.39 US Treasury Note 1.25% 4.15% US Treasury Note 0.5% 4.11% 0.0 0 US Treasury Bond 2.375% 4.07% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police Pension Plan 21

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 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Total Annualized StdDev, % Excess Annualized StdDev, % 2 Barclays US Treasury US TIPS TR USD 3 Alpha, % Sharpe Ratio 0 2 Return vs. Risk 2 1 Apr-10 - Mar-13 1 16 1 14 Total Annualized Return, % 12 -1 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 10 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 Universe(95%) -0.92 0.63 65.86 1.31 3.77 0.38 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Cash Barclays US Treasury US TIPS TR USD City of Dover, Delaware Police Pension Plan 22

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Long-Term Bond Index I Portfolio Information Investment Strategy Summary 12.37 % Cash Ticker VBLLX % US Stocks Morningstar Category Long-term Bond % Bonds Avg Mkt Cap $MM NA The investment seeks to track the performance of a market-weighted bond index with a % Non-US Stocks Cat Med Mkt Cap $MM 37398.17 long-term dollar-weighted average maturity. The fund employs an indexing investment % Pref Net Assets $MM 5786.18 approach designed to track the performance of the Barclays Capital U.S. Long % Conv Turnover Ratio 41.00 Government/Credit Float Adjusted Index. It invests at least 80% of assets in bonds held % Other % Assets in Top 10 Holdings 21.51 in the index. The fund maintains a dollar-weighted average maturity consistent with % Non-US Bonds Total Number of Holdings 1434.00 that of the index, which generally ranges between 15 and 30 years. 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 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 0.46 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 Total Annualized Return, % Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 12.37 10 % Rank Cat 3 Yr 34 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 56 8 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 50 6 % Asia - Emerging NA 4 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % 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 % Consumer Defensive NA US Govt/ Agency NA 350 -2 % Healthcare NA AAA 42.05 % Industrials NA AA 7.45 -4 % Real Estate NA A 23.98 300 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 % Financial Services NA B 0.00 Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities NA Below B 0.00 NR/NA 0.00 Vanguard Long-Term Bond Index I BC Long Government/Credit 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% BC Long Government/Credit -1.98 -1.98 8.94 12.31 9.55 US Treasury Bond 2.75% 2.19% 100 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% Universe(Median) -0.22 -0.22 9.23 9.15 8.85 US Treasury Bond 4.75% 2.09% 50 Universe(75%) -1.09 -1.09 6.11 7.69 6.11 US Treasury Bond 3.125% 2.07% Universe(95%) -2.17 -2.17 3.09 3.70 3.76 US Treasury Bond 4.625% 1.90% US Treasury Bond 3% 1.88% 0 0 US Treasury Bond 4.25% 1.79% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police 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 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Total Annualized StdDev, % Excess Annualized StdDev, % 10 10 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 Vanguard Long-Term Bond Index I BC Long Government/Credit 12 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 Universe(95%) -2.46 -0.08 2.31 1.09 1.73 2.01 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Cash BC Long Government/Credit City of Dover, Delaware Police Pension Plan 24

Quarterly Investment Monitor Data as of 03/31/2013 PIMCO Long Duration Total Return Instl 10.18 Portfolio Information Investment Strategy Summary % Cash 14.54 Ticker PLRIX % US Stocks Morningstar Category Long-term Bond % Bonds Avg Mkt Cap $MM 52113.55 The investment seeks maximum total return, consistent with prudent investment % Non-US Stocks Cat Med Mkt Cap $MM 37398.17 management. The fund invests at least 65% of its total assets in a diversified portfolio % Pref Net Assets $MM 6661.57 of Fixed Income Instruments of varying maturities, which may be represented by % Conv Turnover Ratio 219.00 forwards or derivatives such as options, futures contracts or swap agreements. It % Other % Assets in Top 10 Holdings 23.77 invests primarily in investment grade debt securities, but may invest up to 10% of its % Non-US Bonds Total Number of Holdings 850.00 total assets in high yield securities ("junk bonds") that are rated B or higher by Moody's, Manager Name Stephen Rodosky or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of Manager Tenure 5.67 comparable quality. Fund Incept Date 08/31/2006 74.72 Prospectus Exp Ratio 0.50 _________________________________________________________________________ Phone Number 888-877-4626 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 10.18 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 Total Annualized Return, % Mstar Rating % Europe - Emerging 0.00 % Other 0.26 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 14.54 10 % Rank Cat 3 Yr 43 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 23 8 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.00 % Rank Cat 10 Yr NA 6 % Asia - Emerging 0.00 4 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % 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 % Consumer Defensive 0.00 US Govt/ Agency NA 350 -2 % Healthcare 0.00 AAA NA % Industrials 0.00 AA NA -4 % Real Estate 0.00 A NA 300 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 % Financial Services 100.00 B NA Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 0.00 Below B NA NR/NA NA PIMCO Long Duration Total Return Instl BC Long Government/Credit 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% BC Long Government/Credit -1.98 -1.98 8.94 12.31 9.55 US Treasury Bond 4.25% 2.87% 100 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% Universe(Median) -0.22 -0.22 9.23 9.15 8.85 US Treasury Bond 6.25% 2.04% 50 Universe(75%) -1.09 -1.09 6.11 7.69 6.11 Irs Usd 3mls/1.50000s 01/04/16-18 Cme 1.97% Universe(95%) -2.17 -2.17 3.09 3.70 3.76 US Treasury Bond 4.5% 1.78% US Treasury Bond 5.375% 1.76% 0 0 Quebec Prov Cda 5.75% 1.66% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police 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 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Total Annualized StdDev, % Excess Annualized StdDev, % 10 10 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 PIMCO Long Duration Total Return Instl BC Long Government/Credit 12 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 Universe(95%) -2.46 -0.08 2.31 1.09 1.73 2.01 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Cash BC Long Government/Credit City of Dover, Delaware Police Pension Plan 26

Quarterly Investment Monitor Data as of 03/31/2013 Target Small Capitalization Value T 5.74 1.99 Portfolio Information Investment Strategy Summary % Cash Ticker TASVX % US Stocks Morningstar Category Small Value % Bonds Avg Mkt Cap $MM 1993.33 The investment seeks above-average capital appreciation. The Portfolio seeks % Non-US Stocks Cat Med Mkt Cap $MM 1301.69 investments that will increase in value. It normally invests at least 80% of its investable % Pref Net Assets $MM 1421.95 assets in common stocks of small companies. Small companies are those companies with % Conv Turnover Ratio 37.00 market capitalizations comparable to those in the Russell 2000 Value Index. As of % Other % Assets in Top 10 Holdings 8.61 December 31, 2012, the Russell 2000 Value Index median market capitalization was % Non-US Bonds Total Number of Holdings 655.00 approximately $472 million and the largest company by market capitalization was $4.664 Manager Name Paul E. Viera, Jr. billion. Market capitalization is measured at the time of purchase. Manager Tenure 11.25 Fund Incept Date 01/05/1993 _________________________________________________________________________ 91.86 Prospectus Exp Ratio 0.68 Phone Number 800-225-1852 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 97.88 % Cash 5.74 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 Total Annualized Return, % Mstar Rating % 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 % Japan 0.00 % Rank Cat 5 Yr 34 15 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 9 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 7.07 Avg Eff Duration 2 200 % Communication Services 0.47 Effective Maturity 5 % Consumer Cyclical 11.62 Avg Credit Quality 180 % Consumer Defensive 4.66 US Govt/ Agency % Healthcare 6.77 AAA 160 % Industrials 25.45 AA 0 % Real Estate 6.01 A 3 Months YTD 1 Year 3 Years 5 Years % Technology 8.52 BBB 140 % Energy 6.64 BB 5th to 25th Percentile 25th to Median % Financial Services 18.01 B Prospectus Exp Ratio 120 Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 4.78 Below B NR/NA Target Small Capitalization Value T S&P 600 Index 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 Universe(75%) 11.41 11.41 13.54 11.72 6.55 Hexcel Corporation 0.74% Universe(95%) 7.60 7.60 4.96 7.26 3.82 Littelfuse Inc. 0.73% Silgan Holdings, Inc. 0.73% 0 0 Trustmark Corporation 0.73% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police Pension Plan 27

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 25 50 75 100 125 150 175 200 225 1 0.9 9 Down Mkt Capture Ratio, % 0.8 20 8 0 Morningstar SmallCap Blend Universe Target Small Capitalization Value T Total Annualized StdDev, % Excess Annualized StdDev, % 0.7 7 -1 S&P 600 Index 0.6 15 6 Alpha, % Sharpe Ratio -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 Universe(95%) -6.98 0.83 85.23 0.46 16.47 1.88 Morningstar SmallCap Blend Universe Target Small Capitalization Value T Cash S&P 600 Index City of Dover, Delaware Police Pension Plan 28

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Equity-Income Adm 4.53 Portfolio Information Investment Strategy Summary 9.22 % Cash Ticker VEIRX % US Stocks Morningstar Category Large Value % Bonds Avg Mkt Cap $MM 60552.69 The investment seeks to provide an above-average level of current income and % Non-US Stocks Cat Med Mkt Cap $MM 42909.94 reasonable long-term capital appreciation. The fund invests mainly in common stocks of % Pref Net Assets $MM 11531.78 mid-size and large companies whose stocks pay above-average levels of dividend % Conv Turnover Ratio 26.00 income and are considered to have the potential for capital appreciation. In addition, % Other % Assets in Top 10 Holdings 30.48 the advisors generally look for companies that they believe are committed to paying % Non-US Bonds Total Number of Holdings 153.00 dividends consistently. Under normal circumstances, it will invest at least 80% of its Manager Name James P. Stetler assets in equity securities. The fund uses multiple investment advisors. Manager Tenure 9.25 86.25 Fund Incept Date 03/21/1988 _________________________________________________________________________ Prospectus Exp Ratio 0.21 Phone Number 800-662-7447 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 90.34 % Cash 4.53 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 Total Annualized Return, % Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 2 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 7 15 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 9 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 3.07 Avg Eff Duration 2 180 % Communication Services 4.75 Effective Maturity 5 % Consumer Cyclical 6.80 Avg Credit Quality 160 % Consumer Defensive 15.12 US Govt/ Agency % Healthcare 13.20 AAA % Industrials 14.45 AA 140 0 % Real Estate 0.02 A 3 Months YTD 1 Year 3 Years 5 Years % Technology 9.08 BBB % Energy 13.16 BB 120 5th to 25th Percentile 25th to Median % Financial Services 13.52 B Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 6.84 Below B 100 Vanguard Equity-Income Adm S&P 500 Value NR/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 Universe(75%) 10.63 10.63 13.84 9.82 3.50 JPMorgan Chase & Co 2.84% Universe(95%) 9.13 9.13 9.64 7.07 1.93 General Electric Co 2.70% Philip Morris International, Inc. 2.36% 0 0 Microsoft Corporation 2.13% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police Pension Plan 29

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 -40 Apr-10 - Mar-13 200 -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 0 20 40 60 80 100 120 140 160 5 18 6 Down Mkt Capture Ratio, % 4 16 Morningstar Large Value Universe Vanguard Equity-Income Adm Excess Annualized StdDev, % 3 Total Annualized StdDev, % 14 5 S&P 500 Value 2 12 Sharpe Ratio 4 Alpha, % 1 1 10 0 3 Return vs. Risk 8 -1 6 Apr-10 - Mar-13 -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 Universe(95%) -4.81 0.72 88.95 0.50 11.92 1.71 Morningstar Large Value Universe Vanguard Equity-Income Adm Cash S&P 500 Value City of Dover, Delaware Police Pension Plan 30

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

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, % 50 20 Total Return, % 75 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-13 250 -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 25 50 75 100 125 150 175 200 225 250 0 0.9 18 8 Down Mkt Capture Ratio, % 0.8 16 -1 7 Morningstar Large Growth Universe Vanguard Morgan Growth Adm Total Annualized StdDev, % Excess Annualized StdDev, % 0.7 14 -2 6 S&P 500 Growth 0.6 12 Alpha, % Sharpe Ratio -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 Universe(95%) -7.73 0.93 85.62 0.45 13.96 2.78 Morningstar Large Growth Universe Vanguard Morgan Growth Adm Cash S&P 500 Growth City of Dover, Delaware Police Pension Plan 32

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard PRIMECAP Inv 2.69 Portfolio Information Investment Strategy Summary 12.97 % Cash Ticker VPMCX % US Stocks Morningstar Category Large Growth % Bonds Avg Mkt Cap $MM 44923.70 The investment seeks long-term capital appreciation. The fund invests in stocks % Non-US Stocks Cat Med Mkt Cap $MM 37831.31 considered to have above-average earnings growth potential that is not reflected in % Pref Net Assets $MM 33077.98 their current market prices. Its portfolio consists predominantly of large- and % Conv Turnover Ratio 6.00 mid-capitalization stocks. % Other % Assets in Top 10 Holdings 41.14 % Non-US Bonds Total Number of Holdings 121.00 _________________________________________________________________________ Manager Name Theo A. Kolokotrones Manager Tenure 27.85 84.34 Fund Incept Date 11/01/1984 Prospectus Exp Ratio 0.45 Phone Number 800-662-7447 Closed to New Investors Yes Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 86.67 % Cash 2.69 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 Total Annualized Return, % Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 14 % Rank Cat 3 Yr 27 % Middle East 0.00 5 Year Mstar Rating % Japan 0.39 % Rank Cat 5 Yr 17 12 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 5 10 % Asia - Emerging 0.00 8 6 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 3.70 Avg Eff Duration 2 300 % Communication Services 2.31 Effective Maturity 4 % Consumer Cyclical 5.07 Avg Credit Quality % Consumer Defensive 0.98 US Govt/ Agency 2 % Healthcare 31.62 AAA 250 % Industrials 14.36 AA 0 % Real Estate 0.00 A 3 Months YTD 1 Year 3 Years 5 Years % Technology 31.08 BBB % Energy 4.99 BB 200 5th to 25th Percentile 25th to Median % Financial Services 5.75 B Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 0.14 Below B NR/NA Vanguard PRIMECAP Inv S&P 500 Growth 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% Universe(25%) 9.87 9.87 10.80 12.27 7.03 Roche Holding AG 4.08% 50 Universe(Median) 8.76 8.76 8.25 10.97 5.52 FedEx Corporation 3.85% Universe(75%) 7.67 7.67 5.70 9.63 4.00 Texas Instruments, Inc. 3.45% Universe(95%) 5.87 5.87 2.08 6.58 1.24 Microsoft Corporation 3.34% Novartis AG ADR 3.18% 0 0 Adobe Systems Inc 3.05% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police Pension Plan 33

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, % 50 20 Total Return, % 75 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-13 250 -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 25 50 75 100 125 150 175 200 225 250 0 0.9 18 8 Down Mkt Capture Ratio, % 0.8 16 -1 7 Morningstar Large Growth Universe Vanguard PRIMECAP Inv Total Annualized StdDev, % Excess Annualized StdDev, % 0.7 14 -2 6 S&P 500 Growth 0.6 12 Alpha, % Sharpe Ratio -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 Universe(95%) -7.73 0.93 85.62 0.45 13.96 2.78 Morningstar Large Growth Universe Vanguard PRIMECAP Inv Cash S&P 500 Growth City of Dover, Delaware Police Pension Plan 34

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Mid-Cap Value Index Admiral 1.87 Portfolio Information Investment Strategy Summary % Cash Ticker VMVAX % US Stocks Morningstar Category Mid-Cap Value % Bonds Avg Mkt Cap $MM 6009.18 The investment seeks to track the performance of a benchmark index that measures the % Non-US Stocks Cat Med Mkt Cap $MM 7410.40 investment return of mid-capitalization value stocks. The fund employs an indexing % Pref Net Assets $MM 3166.27 investment approach designed to track the performance of the MSCI US Mid Cap Value % Conv Turnover Ratio 33.00 Index, a broadly diversified index of value stocks of mid-size U.S. companies. It % Other % Assets in Top 10 Holdings 8.82 attempts to replicate the target index by investing all, or substantially all, of its assets % Non-US Bonds Total Number of Holdings 256.00 in the stocks that make up the index, holding each stock in approximately the same Manager Name Donald M. Butler proportion as its weighting in the index. Manager Tenure 6.62 97.95 Fund Incept Date 08/17/2006 _________________________________________________________________________ Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 98.13 % Cash 0.18 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 Total Annualized Return, % Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 28 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 28 15 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.22 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 7.23 Avg Eff Duration 3 250 % Communication Services 1.19 Effective Maturity 5 % Consumer Cyclical 11.93 Avg Credit Quality 225 % Consumer Defensive 8.45 US Govt/ Agency % Healthcare 5.11 AAA 200 % Industrials 13.46 AA 0 % Real Estate 9.26 A 3 Months YTD 1 Year 3 Years 5 Years % Technology 10.09 BBB 175 % Energy 6.82 BB 2 5th to 25th Percentile 25th to Median % Financial Services 16.18 B Prospectus Exp Ratio 150 Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 10.29 Below B NR/NA Vanguard Mid-Cap Value Index Admiral MSCI US Mid Cap 450 Index USD 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 Universe(75%) 11.11 11.11 13.35 11.61 5.78 DTE Energy Holding Company 0.85% Universe(95%) 6.65 6.65 6.27 5.84 1.76 Pentair Ltd 0.85% Regions Financial Corporation 0.83% 0 0 American Capital Agency Corp. 0.81% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police Pension Plan 35

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 0 25 50 75 100 125 150 175 200 225 3 1.0 10 Down Mkt Capture Ratio, % 2 0.9 20 9 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Excess Annualized StdDev, % 1 0.8 8 Total Annualized StdDev, % MSCI US Mid Cap 450 Index USD 0 0.7 7 15 Alpha, % Sharpe Ratio -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 Universe(95%) -6.07 0.73 83.44 0.47 13.44 1.62 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Cash MSCI US Mid Cap 450 Index USD City of Dover, Delaware Police Pension Plan 36

Quarterly Investment Monitor Data as of 03/31/2013 American Funds New Perspective R6 5.58 2.08 Portfolio Information Investment Strategy Summary % Cash Ticker RNPGX 38.72 % US Stocks Morningstar Category World Stock % Bonds Avg Mkt Cap $MM 43028.76 The investment seeks long-term growth of capital; future income is a secondary % Non-US Stocks Cat Med Mkt Cap $MM 25969.20 objective. The fund seeks to take advantage of investment opportunities generated by % Pref Net Assets $MM 46232.90 changes in international trade patterns and economic and political relationships by % Conv Turnover Ratio 16.00 investing in common stocks of companies located around the world. In pursuing its % Other % Assets in Top 10 Holdings 18.53 primary investment objective, it invests primarily in common stocks that the investment % Non-US Bonds Total Number of Holdings 264.00 adviser believes have the potential for growth. In pursuing its secondary objective, the Manager Name Gregg E. Ireland fund invests in common stocks of companies with the potential to pay dividends in the Manager Tenure 20.34 future. 53.33 Fund Incept Date 03/13/1973 Prospectus Exp Ratio 0.46 _________________________________________________________________________ Phone Number 800-421-4225 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 42.07 % Cash 5.58 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 Total Annualized Return, % Mstar Rating % Europe - Emerging 0.00 % Other 2.08 3 Year Mstar Rating 12 % Africa 3.44 % Non-US Bonds 0.00 % Rank Cat 3 Yr 26 % Middle East 0.00 5 Year Mstar Rating 10 % Japan 4.57 % Rank Cat 5 Yr 22 % Australasia 1.98 10 Year Mstar Rating 8 % Asia - Developed 5.37 % Rank Cat 10 Yr 19 % Asia - Emerging 1.07 6 4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 % Basic Materials 7.63 Avg Eff Duration 3 225 % Communication Services 2.79 Effective Maturity 0 % Consumer Cyclical 17.78 Avg Credit Quality 200 % Consumer Defensive 12.47 US Govt/ Agency -2 % Healthcare 17.33 AAA % Industrials 12.85 AA 175 -4 % Real Estate 0.00 A 3 Months YTD 1 Year 3 Years 5 Years % Technology 11.10 BBB % Energy 6.07 BB 2 150 5th to 25th Percentile 25th to Median % Financial Services 11.36 B Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 0.62 Below B 125 American Funds New Perspective R6 MSCI AC World Index ND USD NR/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 Universe(75%) 5.67 5.67 7.86 6.08 0.90 Shoprite Holdings Ltd 1.31% Universe(95%) 0.52 0.52 -0.55 1.29 -2.27 Taiwan Semiconductor Manufacturing 1.27% British American Tobacco PLC 1.25% 0 0 ACE Ltd 1.21% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police 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, % 50 20 Total Return, % 75 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-13 140 -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 0 20 40 60 80 100 120 140 160 180 1.0 20 6 Down Mkt Capture Ratio, % 0.9 18 10 4 Morningstar World Stock Universe American Funds New Perspective R6 Excess Annualized StdDev, % 0.8 16 Total Annualized StdDev, % 8 MSCI AC World Index ND USD 2 0.7 14 Alpha, % Sharpe Ratio 0.6 12 0 6 0.5 10 Return vs. Risk -2 0.4 8 4 Apr-10 - Mar-13 0.3 6 -4 20 0.2 4 2 -6 15 0.1 2 Total Annualized Return, % 10 -8 0.0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 American Funds New Perspective R6 MSCI AC World Index ND USD 0 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -5 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -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 Universe(95%) -6.67 0.61 69.26 0.16 12.06 2.45 Morningstar World Stock Universe American Funds New Perspective R6 Cash MSCI AC World Index ND USD City of Dover, Delaware Police Pension Plan 38

Quarterly Investment Monitor Data as of 03/31/2013 Harding Loevner Global Equity Inst 2.96 Portfolio Information Investment Strategy Summary % Cash Ticker HLMVX % US Stocks Morningstar Category World Stock % Bonds Avg Mkt Cap $MM 32194.95 The investment seeks long-term capital appreciation. The fund invests in companies 51.71 % Non-US Stocks Cat Med Mkt Cap $MM 25969.20 based in the U.S. and other developed markets, as well as in emerging and frontier % Pref Net Assets $MM 482.53 markets. It invests at least 80% of net assets in common stocks, preferred stock, rights % Conv Turnover Ratio 32.00 and warrants issued by companies that are based both inside and outside the United % Other % Assets in Top 10 Holdings 27.28 States, securities convertible into such securities and investment companies that invest 45.33 % Non-US Bonds Total Number of Holdings 67.00 in the types of securities in which the fund would normally invest. The fund normally Manager Name Ferrill Roll holds 35-75 investments across at least 15 countries. Manager Tenure 12.17 Fund Incept Date 11/29/1996 _________________________________________________________________________ Prospectus Exp Ratio 0.95 Phone Number 877-435-8105 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 53.29 % Cash 2.96 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 Total Annualized Return, % Mstar Rating % Europe - Emerging 2.45 % Other 0.00 3 Year Mstar Rating 12 % Africa 1.32 % Non-US Bonds 0.00 % Rank Cat 3 Yr 60 % Middle East 0.00 5 Year Mstar Rating 10 % Japan 9.36 % Rank Cat 5 Yr 37 % Australasia 1.61 10 Year Mstar Rating 8 % Asia - Developed 2.02 % Rank Cat 10 Yr 44 % Asia - Emerging 5.09 6 4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 % Basic Materials 3.79 Avg Eff Duration 3 225 % Communication Services 2.77 Effective Maturity 0 % Consumer Cyclical 17.09 Avg Credit Quality 200 % Consumer Defensive 11.99 US Govt/ Agency -2 % Healthcare 7.32 AAA % Industrials 12.41 AA 175 -4 % Real Estate 0.00 A 3 Months YTD 1 Year 3 Years 5 Years % Technology 20.22 BBB % Energy 6.05 BB 2 150 5th to 25th Percentile 25th to Median % Financial Services 18.36 B Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 0.00 Below B 125 Harding Loevner Global Equity Inst MSCI AC World Index ND USD NR/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 Universe(75%) 5.67 5.67 7.86 6.08 0.90 Schlumberger NV 2.44% Universe(95%) 0.52 0.52 -0.55 1.29 -2.27 Standard Chartered PLC 2.38% Emerson Electric Co. 2.33% 0 0 Dassault Systemes SA 2.11% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police 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, % 50 20 Total Return, % 75 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-13 140 -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 0 20 40 60 80 100 120 140 160 180 1.0 20 6 Down Mkt Capture Ratio, % 0.9 18 10 4 Morningstar World Stock Universe Harding Loevner Global Equity Inst Excess Annualized StdDev, % 0.8 16 Total Annualized StdDev, % 8 MSCI AC World Index ND USD 2 0.7 14 Alpha, % Sharpe Ratio 0.6 12 0 6 0.5 10 Return vs. Risk -2 0.4 8 4 Apr-10 - Mar-13 0.3 6 -4 20 0.2 4 2 -6 15 0.1 2 Total Annualized Return, % 10 -8 0.0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 Harding Loevner Global Equity Inst MSCI AC World Index ND USD 0 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -5 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -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 Universe(95%) -6.67 0.61 69.26 0.16 12.06 2.45 Morningstar World Stock Universe Harding Loevner Global Equity Inst Cash MSCI AC World Index ND USD City of Dover, Delaware Police Pension Plan 40

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard Emerging Mkts Stock Idx I 1.79 Portfolio Information Investment Strategy Summary % Cash Ticker VEMIX % US Stocks Morningstar Category Diversified Emerging Mkts % Bonds Avg Mkt Cap $MM 20088.91 The investment seeks to track the performance of a benchmark index that measures the % Non-US Stocks Cat Med Mkt Cap $MM 15735.51 investment return of stocks issued by companies located in emerging market countries. % Pref Net Assets $MM 74586.62 The fund employs an indexing investment approach by investing substantially all % Conv Turnover Ratio 8.00 (approximately 95%) of its assets in the common stocks included in the FTSE Emerging % Other % Assets in Top 10 Holdings 13.91 Transition Index, while employing a form of sampling to reduce risk. The FTSE Emerging % Non-US Bonds Total Number of Holdings 1111.00 Transition Index is a "dynamic" index that represents the components of the FTSE Manager Name Michael Perre Emerging Index plus South Korean equity exposure. Manager Tenure 4.59 96.11 Fund Incept Date 05/04/1994 _________________________________________________________________________ Prospectus Exp Ratio 0.12 Phone Number 800-662-7447 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 0.31 % Cash 0.86 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 % Europe - ex Euro 0.00 % Conv 0.00 Total Annualized Return, % Mstar Rating 8 % 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 % Australasia 0.00 10 Year Mstar Rating 4 % Asia - Developed 25.02 % Rank Cat 10 Yr 38 % Asia - Emerging 36.45 2 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 11.88 Avg Eff Duration 3 200 -2 % Communication Services 8.38 Effective Maturity % Consumer Cyclical 8.42 Avg Credit Quality 180 % Consumer Defensive 8.29 US Govt/ Agency -4 % Healthcare 1.08 AAA 160 % Industrials 7.65 AA -6 % Real Estate 1.83 A 3 Months YTD 1 Year 3 Years 5 Years % Technology 14.23 BBB 140 % Energy 10.96 BB 2 5th to 25th Percentile 25th to Median % Financial Services 24.27 B Prospectus Exp Ratio 120 Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 3.01 Below B NR/NA Vanguard Emerging Mkts Stock Idx I MSCI EM NR USD 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 Universe(75%) -2.33 -2.33 0.79 1.15 -1.22 America Movil, S.A.B. de C.V. 1.17% Universe(95%) -4.72 -4.72 -4.20 -3.26 -5.94 Gazprom OAO ADR 1.12% CNOOC, Ltd. 0.99% 0 0 Mtn Group Limited 0.90% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police 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 -60 Apr-10 - Mar-13 225 -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 0 25 50 75 100 125 150 175 200 225 4 8 Down Mkt Capture Ratio, % 3 0.4 20 7 2 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Total Annualized StdDev, % Excess Annualized StdDev, % 1 0.3 6 MSCI EM NR USD 15 Sharpe Ratio 0 Alpha, % 5 -1 0.2 4 -2 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 Universe(95%) -6.00 0.85 90.29 -0.05 18.54 3.03 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Cash MSCI EM NR USD City of Dover, Delaware Police Pension Plan 42

Quarterly Investment Monitor Data as of 03/31/2013 Vanguard REIT Index I Portfolio Information Investment Strategy Summary % Cash Ticker VGSNX % US Stocks Morningstar Category Real Estate % Bonds Avg Mkt Cap $MM 8224.57 The investment seeks to provide a high level of income and moderate long-term capital % Non-US Stocks Cat Med Mkt Cap $MM 8397.24 appreciation by tracking the performance of a benchmark index that measures the % Pref Net Assets $MM 34678.77 performance of publicly traded equity REITs. The fund employs an indexing investment % Conv Turnover Ratio 9.00 approach designed to track the performance of the MSCI US REIT Index. The index is % Other % Assets in Top 10 Holdings 45.45 composed of stocks of publicly traded equity real estate investment trusts (known as % Non-US Bonds Total Number of Holdings 119.00 REITs). It attempts to replicate the index by investing all, or substantially all, of its Manager Name Gerard C. O'Reilly assets in the stocks that make up the index, holding each stock in approximately the Manager Tenure 16.89 same proportion as its weighting in the index. Fund Incept Date 05/13/1996 99.39 Prospectus Exp Ratio 0.08 _________________________________________________________________________ Phone Number 800-662-7447 Closed to New Investors No Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 0.61 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 Total Annualized Return, % Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 10 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 16 15 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 27 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 0.00 Avg Eff Duration 2 160 % Communication Services 0.00 Effective Maturity 5 % Consumer Cyclical 0.00 Avg Credit Quality % Consumer Defensive 0.00 US Govt/ Agency 140 % Healthcare 0.00 AAA % Industrials 0.00 AA 0 % Real Estate 100.00 A 120 3 Months YTD 1 Year 3 Years 5 Years % Technology 0.00 BBB % Energy 0.00 BB 100 5th to 25th Percentile 25th to Median % Financial Services 0.00 B Prospectus Exp Ratio Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities 0.00 Below B NR/NA Vanguard REIT Index I MSCI US REIT NR USD 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% MSCI US REIT NR USD 7.79 7.79 13.67 16.01 5.31 HCP Inc 4.56% 40 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% Universe(Median) 6.60 6.60 12.66 16.11 6.19 Prologis Inc 3.75% 20 Universe(75%) 5.92 5.92 11.91 15.18 4.30 Boston Properties Inc 3.56% Universe(95%) 5.16 5.16 9.92 11.39 1.25 Health Care REIT, Inc. 3.49% AvalonBay Communities Inc 3.39% 0 0 Vornado Realty Trust 2.98% Prospectus Exp Ratio Turnover Ratio City of Dover, Delaware Police 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 -40 Apr-10 - Mar-13 160 -50 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 140 Up Mkt Capture Ratio, % 120 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 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 2 22 11 0 0 20 40 60 80 100 120 140 160 20 10 4 Down Mkt Capture Ratio, % 18 9 3 Morningstar Real Estate Universe Vanguard REIT Index I Excess Annualized StdDev, % 16 8 Total Annualized StdDev, % 2 MSCI US REIT NR USD 14 7 Alpha, % Sharpe Ratio 1 12 6 1 0 10 5 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 Universe(95%) -3.31 0.86 80.32 0.64 14.94 1.05 Morningstar Real Estate Universe Vanguard REIT Index I Cash MSCI US REIT NR USD City of Dover, Delaware Police 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 Police 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 Police 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 Police Pension Plan 46