Attachment

POLICE PENSION BOARD AGENDA MAY 9, 2012 - 4:00 P.M. CITY HALL COUNCIL CHAMBERS 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. Quarterly Return Summary (Milliman, Inc.) 2. Quarterly Investment Monitor Report (Milliman, Inc.) 3. Adjournment by 4:30 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\Misc-Agendas\PENSION BOARDS\2012\CIVILIAN PENSION BOARD\05-09-2012 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.

City of Dover Police Pension Plan Quarterly Return Summary POLICE-NET POLICE GROSS- Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 1/31/2012 $ 10,392,786.48 $ - $ 125,564.97 $ 445.44 $ 340,994.72 $ 10,670,775.99 3.28% 3.30% 2/29/2012 $ 10,670,775.99 $ - $ 124,966.29 $ 452.54 $ 230,911.76 $ 10,838,978.34 2.16% 2.19% 3/31/2012 $ 10,838,978.34 $ 150,000.00 $ 124,966.29 $ 457.29 $ 153,490.52 $ 11,004,757.07 1.42% 1.44% Quarterly Return 7.01% 7.08% Monthly Returns are calculated with a mid month weighting on cash flows. Milliman, Inc.

Quarterly Investment Monitor Summary Report for the Quarter Ending March 31, 2012 Prepared for City of Dover, Delaware Police Pension Plan

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

Quarterly Investment Monitor Market Indices - 1st Quarter 2012 3 1 3 5 10 Index Months Year Years Years Years Citigroup 3-Mth Treas Bill 0.01 0.05 0.11 1.12 1.81 Barclays Capital 1-3 Year Government Idx 0.10 1.60 1.71 3.53 3.38 Barclays Capital Interm U.S.Govt/Credit 0.61 6.09 5.88 5.67 5.29 Barclays Capital Long Govt -5.58 22.99 7.36 9.31 8.50 Barclays Capital Long Term Credit Bd Idx 0.80 17.32 17.94 8.52 8.29 Barclays Capital US Corp High Yld Index 5.34 6.45 23.87 8.10 9.24 Dow Jones Industrial Average 8.14 7.24 20.19 1.35 2.42 S&P 500 Composite Total Return 12.58 8.54 23.42 2.01 4.12 NASDAQ-100 (US$) 20.96 17.80 30.60 9.23 6.61 NASDAQ Composite 18.67 11.16 26.46 5.01 5.30 Russell 1000 Value Index 11.12 4.79 22.82 -0.81 4.58 Russell 1000 Index 12.90 7.86 24.03 2.19 4.53 Russell 1000 Growth Index 14.69 11.02 25.28 5.10 4.28 Russell 2000 Value 11.59 -1.07 25.36 0.01 6.59 Russell 2000 Index 12.44 -0.18 26.90 2.13 6.45 Russell 2000 Growth 13.28 0.68 28.36 4.15 6.00 Dow Jones Wilshire REIT Index 10.79 13.39 44.69 -0.67 10.41 MSCI EAFE (Net) Index 10.86 -5.77 17.13 -3.51 5.65 MSCI EAFE Small Cap (Net) Index 14.86 -6.23 24.12 -2.79 9.92 MSCI EM (Emerging Markets) Index 14.14 -8.52 25.42 4.97 14.47 City of Dover, Delaware Police Pension Plan 3

Quarterly Investment Monitor Broad Market Commentary - 1st Quarter 2012 Broad Markets - Quarter Broad Markets - Five Years Jan-12 - Mar-12 Mar-07 - Mar-12 20 140 18 130 16 120 14 110 Total Return, % Growth of $100 12 100 10 90 8 80 6 70 4 60 2 50 0 40 Jan-12 - Mar-12 Mar-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Mar-12 Total Total Barclays Capital Interm U.S.Govt/Credit S&P 500 Composite Total Return Barclays Capital Interm U.S.Govt/Credit S&P 500 Composite Total Return NASDAQ Composite MSCI EAFE (Net) Index NASDAQ Composite MSCI EAFE (Net) Index Market Commentary · The U.S. stock market surged in the 1st quarter on improved U.S. economic data, strong corporate earnings, and signs of progress in resolving the European debt crisis. · The international equity markets rose sharply on efforts by central banks to support economic growth and investor perception that the risk of a Eurozone collapse was significantly reduced. · The Federal Reserve Bank continued to sell shorter-term U.S. Treasuries and buy longer-term bonds, with the goal of pushing down long-term interest rates to stimulate borrowing and spending. · As the quarter ended, mutual fund investors increased their holdings in bonds and decreased their holdings in stocks. For the quarter, bond funds had net inflows of $93.7 billion, while stock funds had net outflows of $10.0 billion. Total money market mutual fund assets decreased by $90.23 billion to $2.605 trillion. · The unemployment rate fell from 8.5% to 8.2%, as total employment increased by 635,000 jobs. · The price of oil increased from $99 per barrel to $106 during the quarter, an increase of 7.1%. · For the three months ending March 31, 2012, annualized seasonally adjusted CPI – U was 3.7%. Rising prices for gasoline drove the decrease. City of Dover, Delaware Police Pension Plan 4

Quarterly Investment Monitor US Fixed Income Market Commentary - 1st Quarter 2012 US Fixed Income - Quarter US Fixed Income - Five Years Jan-12 - Mar-12 Mar-07 - Mar-12 6 170 5 160 4 150 3 140 Growth of $100 2 Total Return, % 130 1 120 0 110 -1 100 -2 90 -3 80 -4 70 -5 60 -6 Mar-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Mar-12 Jan-12 - Mar-12 Total Total Citigroup 3-Mth Treas Bill Barclays Capital 1-3 Year Government Idx Citigroup 3-Mth Treas Bill Barclays Capital 1-3 Year Government Idx Barclays Capital Interm U.S.Govt/Credit Barclays Capital Long Govt Barclays Capital Interm U.S.Govt/Credit Barclays Capital Long Govt Barclays Capital Long Term Credit Bd Idx Barclays Capital US Corp High Yld Index Barclays Capital Long Term Credit Bd Idx Barclays Capital US Corp High Yld Index US FIxed Income Market Commentary · Most non-Treasury fixed income markets rose in the 1st quarter, as investors continued to embrace risk. · The short end of the yield curve remained unchanged as the Fed maintained its near-zero interest rate policy. · Interest rates moved decidedly higher in the 10- and 30-year Treasury rates. · High-yield bonds were the best performing sector this quarter, up 5.34%, as investors sought securities with higher yields. · Long-term government bonds were the worst performing sector this quarter, down 5.57%, on stronger economic data and a greater appetite for risk. · 91-Day T-Bill returned 0.01% in the first quarter as compared with 0.00% in the fourth quarter. City of Dover, Delaware Police Pension Plan 5

Quarterly Investment Monitor US Equity Market Commentary - 1st Quarter 2012 US Equity - Quarter US Equity - Five Years Jan-12 - Mar-12 Mar-07 - Mar-12 16 130 14 120 110 12 100 Total Return, % Growth of $100 10 90 8 80 6 70 4 60 2 50 0 40 Jan-12 - Mar-12 Mar-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Mar-12 Total Total Russell 1000 Value Index Russell 1000 Index Russell 1000 Value Index Russell 1000 Index Russell 1000 Growth Index Russell 2000 Value Russell 1000 Growth Index Russell 2000 Value Russell 2000 Index Russell 2000 Growth Russell 2000 Index Russell 2000 Growth US Equity Market Commentary · Most major domestic equity indices posted a gain for the quarter. The large-cap Russell 1000 Growth Index had the best return, up 14.7%. · In terms of capitalization, large-cap growth stocks outperformed small-cap growth, but small-cap value stocks outperformed large-cap value. · In comparing styles, growth stocks did better than value stocks. · REITs had a strong quarter, up 10.76%, due to strengthening fundamentals in commercial real estate and an improving outlook for the U.S. economy. The best performing sectors were industrials and regional malls. · Info technology was the best performing sector, up 21.25%, on strong earnings, especially record quarterly earnings by Apple. · Utilities were the worst performing sector, down 1.56%, as defensive companies lagged the broad market. City of Dover, Delaware Police Pension Plan 6

Quarterly Investment Monitor International Market Commentary - 1st Quarter 2012 International - Quarter Jan-12 - Mar-12 16 International - Five Years 14 12 Mar-07 - Mar-12 Total Return, % 10 160 8 6 4 140 2 0 120 Growth of $100 MSCI EAFE (Net) Index MSCI EAFE Small Cap (Net) Index 100 MSCI EM (Emerging Markets) Index Regional Performance - Quarter 80 Jan-12 - Mar-12 16 14 60 12 Total Return, % 10 8 40 Mar-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Mar-12 6 4 MSCI EAFE (Net) Index MSCI EAFE Small Cap (Net) Index 2 MSCI EM (Emerging Markets) Index 0 MSCI Australia ND MSCI Europe ex UK ND MSCI United Kingdom ND MSCI Pacific ex Japan ND MSCI Japan ND MSCI EM Latin America (Net) Index International Market Commentary · The dollar was down against the euro and pound, but up against the yen. · For the quarter, the EAFE Index was up 10.86% and Emerging Markets were up 14.08%. Local currency returns for the EAFE Index and Emerging Markets were 10.2% and 10.7%, respectively. · Among the major international regions, Indian stocks had the highest return (+20.4%) as bank stocks benefited from better-than-expected earnings. · Stocks in Russia also rose substantially (+18.1%), as energy and financial stocks posted significant gains. · Small-cap stocks, up 14.9%, outperformed large-cap stocks. City of Dover, Delaware Police Pension Plan 7

Quarterly Investment Monitor Data as of 03/31/2012 Performance Summary City of Dover, Delaware Police Pension Plan 8

Quarterly Investment Monitor Data as of 03/31/2012 Asset Allocation Balances As of Percent As of Balances As of Percent As of Notes 03/31/2012 03/31/2012 12/31/2011 12/31/2011 Wells Fargo Advantage Treas Plus MMkt I $274,342 2.49% $0 0.00% Vanguard Short-Term Bond Index Signal $2,341,365 21.28% $0 0.00% Vanguard Interm-Term Bond Index Signal $1,179,688 10.72% $0 0.00% Vanguard Equity-Income Adm $1,544,250 14.04% $0 0.00% Vanguard Morgan Growth Adm $802,566 7.30% $0 0.00% Vanguard PRIMECAP Inv $615,641 5.60% $0 0.00% Vanguard Mid-Cap Value Index Admiral $964,678 8.77% $0 0.00% DFA US Targeted Value I $547,870 4.98% $0 0.00% DFA International Value I $693,700 6.31% $0 0.00% American Funds New Perspective R6 $1,016,145 9.24% $0 0.00% Harding Loevner Global Equity Inst $1,021,040 9.28% $0 0.00% Plan Total $11,001,284 $0 City of Dover, Delaware Police Pension Plan 9

Quarterly Investment Monitor Data as of 03/31/2012 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 Equity-Income Adm 13 8 1.10 3.79 0.80 0.84 4 2 8 8 Vanguard Morgan Growth Adm 29 52 0.93 -1.19 1.17 1.14 41 36 55 52 Vanguard PRIMECAP Inv 79 38 -3.51 -0.45 1.10 1.06 72 72 37 37 DFA US Targeted Value I 33 67 0.98 -0.95 1.09 1.08 87 84 65 60 DFA International Value I 26 75 3.16 1.06 1.10 1.11 63 60 51 57 American Funds New Perspective R6 41 16 0.73 3.81 0.99 0.96 39 34 17 16 Harding Loevner Global Equity Inst 31 14 1.86 4.36 0.98 0.97 31 23 13 14 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 becnchmark, 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 03/31/2012 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 1.14 0.85 1.64 0.82 1.50 0.91 0.11 Vanguard Interm-Term Bond Index Signal -0.04 0.11 1.02 0.34 1.02 0.43 0.11 Vanguard Mid-Cap Value Index Admiral -0.02 -1.40 0.99 3.15 0.98 4.51 0.10 Definitions Excess Return - Fund's excess return over its becnchmark, 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 03/31/2012 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 1.02 1.73 PISXX NA 0.20 BofA ML 3-month T-bill total return Index 0.01 0.01 0.06 0.13 1.23 1.91 N/A NA NA Short-term Bond Vanguard Short-Term Bond Index Signal 0.45 0.45 3.42 3.80 4.62 4.12 VBSSX 4.00 0.11 BarCap US Govt/Credit 1-3 Yr TR USD 0.36 0.36 1.78 2.66 3.77 3.66 N/A NA NA Intermediate-term Bond Vanguard Interm-Term Bond Index Signal 0.64 0.64 11.15 9.53 7.75 6.82 VIBSX 3.00 0.11 BarCap US Govt/Credit 5-10 Yr TR USD 0.72 0.72 11.07 9.56 7.64 7.01 N/A NA NA Large Value Vanguard Equity-Income Adm 8.38 8.38 12.53 24.27 2.96 5.56 VEIRX 5.00 0.22 S&P 500 Value Total Return 12.97 12.97 5.26 23.18 (0.83) 4.32 N/A NA NA Large Growth Vanguard Morgan Growth Adm 17.21 17.21 7.91 24.70 3.61 5.47 VMRAX 4.00 0.30 Large Growth Vanguard PRIMECAP Inv 10.37 10.37 2.95 20.25 4.35 6.24 VPMCX 4.00 0.45 S&P 500 Growth Total Return 12.27 12.27 11.82 23.76 4.80 3.75 N/A NA NA Mid-Cap Value Vanguard Mid-Cap Value Index Admiral 11.22 11.22 3.04 28.95 1.62 NA VMVAX 3.00 0.10 MSCI US Mid Cap 450 Index USD 13.43 13.43 2.79 28.97 3.03 7.72 N/A NA NA Small Value DFA US Targeted Value I 11.98 11.98 (3.22) 29.03 1.18 8.15 DFFVX 3.00 0.38 S&P SmallCap 600 Value Total Return 12.86 12.86 4.68 28.05 2.14 7.13 N/A NA NA Foreign Large Value DFA International Value I 11.34 11.34 (11.58) 19.41 (4.27) 8.19 DFIVX 3.00 0.45 MSCI EAFE Large Value NR USD 9.21 9.21 (7.71) 16.24 (5.33) 5.02 N/A NA NA World Stock American Funds New Perspective R6 13.84 13.84 1.26 20.97 3.11 7.34 RNPGX 4.00 0.46 World Stock Harding Loevner Global Equity Inst 15.90 15.90 4.62 22.10 3.66 7.00 HLMVX 4.00 0.95 MSCI World NTR 11.56 11.56 0.56 20.24 (0.70) 4.72 N/A NA NA Total Plan POLICE GROSS-RETURN 7.08 7.08 1.60 15.99 3.55 NA N/A NA NA Total Plan POLICE-NET RETURN 7.01 7.01 1.33 15.66 3.25 NA N/A NA NA Police Plan Policy Index 8.21 8.21 5.30 17.01 3.10 5.43 N/A NA NA City of Dover, Delaware Police Pension Plan 12

Quarterly Investment Monitor Data as of 03/31/2012 U.S. Fixed Income Style Map 36 Month moving average, Apr-07 - Mar-12 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 City of Dover, Delaware Police Pension Plan 13

Quarterly Investment Monitor Data as of 03/31/2012 U.S. Equity Style Map 36 Month moving average, Apr-07 - Mar-12 LgValue LgGrowth Small - Large MidValue MidGrowth SmValue SmGrowth Value - Growth S&P/BARRA Style Indices Vanguard Equity-Income Adm Vanguard Morgan Growth Adm Vanguard PRIMECAP Inv Vanguard Mid-Cap Value Index Admiral DFA US Targeted Value I City of Dover, Delaware Police Pension Plan 14

Quarterly Investment Monitor Data as of 03/31/2012 International Equity Style Map 36 Month moving average, Apr-07 - Mar-12 Europe Large Asia Pacific Large Small - Large Europe Small Asia Pacific Small European Emerging Asia Pacific Emerging Europe - Asia SBI Equity Indices DFA International Value I American Funds New Perspective R6 Harding Loevner Global Equity Inst City of Dover, Delaware Police Pension Plan 15

Quarterly Investment Monitor Data as of 03/31/2012 Core Fund Review City of Dover, Delaware Police Pension Plan 16

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard Short-Term Bond Index Signal 2.33 Portfolio Information Investment Strategy Summary 10.00 % Cash Ticker VBSSX % US Stocks The investment seeks to track the performance of a market-weighted bond index with a Morningstar Category Short-term Bond % Bonds short-term dollar-weighted average maturity. The fund employs a "passive management"--or Avg Mkt Cap $MM NA % Non-US Stocks indexing--investment approach designed to track the performance of the Barclays Capital Cat Med Mkt Cap $MM 11857.39 % Pref U.S. 1-5 Year Government/ Credit Float Adjusted Index. It invests at least 80% of assets in Net Assets $MM 24344.26 % Conv bonds held in the index. The fund maintains a dollar-weighted average maturity consistent Turnover Ratio 67.00 with that of the index, which generally does not exceed 3 years. % Other % Assets in Top 10 Holdings 16.28 % Non-US Bonds Total Number of Holdings 1354.00 __________________________________________________________________________ Manager Name Gregory Davis Manager Tenure 7.17 87.64 Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.11 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States NA % Cash 2.33 10 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.64 9 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.03 Portfolio Ratings 8 Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 7 % Africa NA % Non-US Bonds 10.00 % Rank Cat 3 Yr 70 % Middle East NA 5 Year Mstar Rating 6 % Japan NA % Rank Cat 5 Yr 18 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 24 5 % Asia - Emerging NA 4 3 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials NA Avg Eff Duration 2.65 2 350 2 % Communication Services NA Effective Maturity 2.80 % Consumer Cyclical NA Avg Credit Quality AA % Consumer Defensive NA US Govt/ Agency NA 1 300 % Healthcare NA AAA 73.24 % Industrials NA AA 7.76 0 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 12.02 250 % Technology NA BBB 6.97 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio 200 % Utilities NA Below B 0.01 Vanguard Short-Term Bond Index Signal BarCap US Govt/Credit 1-3 Yr TR USD NR/NA 0.00 1 Turnover 150 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 0.375% 2.00% Vanguard Short-Term Bond Index Signal 0.45 0.45 3.42 3.80 4.62 US Treasury Note 2.5% 1.79% 100 BarCap US Govt/Credit 1-3 Yr TR USD 0.36 0.36 1.78 2.66 3.77 US Treasury Note 2.625% 1.78% Universe(5%) 2.74 2.74 4.78 9.74 5.74 US Treasury Note 0.875% 1.71% Universe(25%) 1.75 1.75 3.08 6.70 4.47 US Treasury Note 1.75% 1.65% 50 Universe(Median) 1.33 1.33 2.36 5.07 3.72 US Treasury Note 0.625% 1.59% Universe(75%) 0.75 0.75 1.81 3.68 3.00 US Treasury Note 2.375% 1.59% Universe(95%) 0.35 0.35 0.56 1.52 1.31 US Treasury Note 0.875% 1.56% 0 0 US Treasury Note 0.25% 1.40% Prospectus Exp Ratio Turnover Ratio US Treasury Note 1.875% 1.22% City of Dover, Delaware Police Pension Plan 17

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard Short-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 -5 100 Apr-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -10 Up/Down Market Capture Ratio -15 Apr-09 - Mar-12 600 -20 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 500 Up Mkt Capture Ratio, % Vanguard Short-Term Bond Index Signal BarCap US Govt/Credit 1-3 Yr TR USD 400 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 300 Vanguard Short-Term Bond Index Signal 6.10 3.37 1.70 1.31 4.09 7.28 5.51 4.38 4.03 3.08 200 BarCap US Govt/Credit 1-3 Yr TR USD 6.28 2.81 1.30 1.77 4.25 6.83 4.97 3.83 2.80 1.59 100 0 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 4 4 4 -100 -500 -400 -300 -200 -100 0 100 200 300 400 Down Mkt Capture Ratio, % 4 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Excess Annualized StdDev, % 3 3 3 Total Annualized StdDev, % 3 BarCap US Govt/Credit 1-3 Yr TR USD Sharpe Ratio Alpha, % 2 2 2 2 Return vs. Risk 1 Apr-09 - Mar-12 1 1 1 20 0 18 Total Annualized Return, % 16 -1 0 0 0 14 12 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Short-Term Bond Index Signal BarCap US Govt/Credit 1-3 Yr TR USD 10 8 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 6 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 4 Vanguard Short-Term Bond Index Signal -0.50 1.64 90.40 2.13 1.70 0.82 2 BarCap US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 2.53 0.99 0.00 0 Universe(5%) 4.19 2.36 88.05 3.22 3.63 3.74 -2 0 1 2 3 4 5 6 7 Universe(25%) 1.89 1.79 77.17 2.75 2.55 2.00 Universe(Median) 1.14 1.49 61.04 2.52 1.97 1.34 Total Annualized StdDev, % Universe(75%) 0.30 1.16 41.60 2.19 1.50 0.82 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Universe(95%) -0.64 0.67 20.67 1.43 1.03 0.39 Cash BarCap US Govt/Credit 1-3 Yr TR USD City of Dover, Delaware Police Pension Plan 18

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard Interm-Term Bond Index Signal Portfolio Information Investment Strategy Summary 11.27 % Cash Ticker VIBSX % US Stocks The investment seeks to track the performance of a market-weighted bond index with an Morningstar Category Intermediate-term Bond % Bonds intermediate-term dollar-weighted average maturity. The fund employs a "passive Avg Mkt Cap $MM NA % Non-US Stocks management"--or indexing--investment approach to track the performance of the Barclays Cat Med Mkt Cap $MM 21590.63 % Pref Capital U.S. 5-10 Year Government/ Credit Bond Index. It invests by sampling the index, Net Assets $MM 14548.52 % Conv meaning that it holds a range of securities that approximate the full index in terms of key risk Turnover Ratio 61.00 factors and other characteristics. The fund invests at least 80% of assets in bonds held in the % Other % Assets in Top 10 Holdings 28.80 index. It maintains a dollar-weighted average maturity consistent with that of the index, % Non-US Bonds Total Number of Holdings 1212.00 ranging between 5 and 10 years. Manager Name Joshua C. Barrickman 88.59 Manager Tenure 3.94 __________________________________________________________________________ Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.11 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States NA % Cash 0.04 12 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 88.59 % United Kingdom NA % Non-US Stocks 0.00 10 % Eurozone NA % Pref 0.09 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 11.27 % Rank Cat 3 Yr 48 8 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 7 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 7 6 % Asia - Emerging NA 4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials NA Avg Eff Duration 6.40 300 % Communication Services NA Effective Maturity 7.30 2 % Consumer Cyclical NA Avg Credit Quality A % Consumer Defensive NA US Govt/ Agency NA % Healthcare NA AAA 56.55 0.5 250 % Industrials NA AA 5.72 0 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 18.40 % Technology NA BBB 19.31 0.4 200 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile % Utilities NA Below B 0.02 Ratio Vanguard Interm-Term Bond Index Signal BarCap US Govt/Credit 5-10 Yr TR USD NR/NA 0.00 0.3 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 3.625% 3.57% 0.2 100 Vanguard Interm-Term Bond Index Signal 0.64 0.64 11.15 9.53 7.75 US Treasury Note 3.375% 3.40% BarCap US Govt/Credit 5-10 Yr TR USD 0.72 0.72 11.07 9.56 7.64 US Treasury Note 3.625% 3.33% Universe(5%) 0.51 0.51 8.53 7.44 6.73 US Treasury Note 3.125% 3.25% Universe(25%) 0.34 0.34 7.65 6.61 6.28 0.1 50 US Treasury Note 3.5% 3.12% Universe(Median) 0.26 0.26 7.54 6.38 6.06 US Treasury Note 2% 2.73% Universe(75%) 0.21 0.21 7.19 6.25 5.76 US Treasury Note 2.125% 2.71% Universe(95%) 0.02 0.02 7.05 6.03 5.05 US Treasury Note 3.75% 2.47% 0.0 0 US Treasury Note 2.625% 2.12% Prospectus Exp Ratio Turnover Ratio US Treasury Note 3.625% 2.10% City of Dover, Delaware Police Pension Plan 19

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard Interm-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 14 0 12 25 Total Return Rank, % 10 50 Total Return, % 8 75 6 100 Apr-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 4 Up/Down Market Capture Ratio 2 Apr-09 - Mar-12 110 0 100 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 90 Up Mkt Capture Ratio, % Vanguard Interm-Term Bond Index Signal BarCap US Govt/Credit 5-10 Yr TR USD 80 70 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 60 Vanguard Interm-Term Bond Index Signal 10.85 5.65 5.22 1.75 3.91 7.66 5.01 6.89 9.49 10.73 50 BarCap US Govt/Credit 5-10 Yr TR USD 13.03 5.97 5.30 1.83 3.81 7.55 5.06 6.50 9.42 10.79 40 30 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 10 1 3 5 2 0 0 20 40 60 80 100 120 Down Mkt Capture Ratio, % 4 Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Total Annualized StdDev, % Excess Annualized StdDev, % 2 BarCap US Govt/Credit 5-10 Yr TR USD 3 Sharpe Ratio Alpha, % 0 1 2 Return vs. Risk 1 Apr-09 - Mar-12 10 1 9 Total Annualized Return, % 8 -1 0 0 0 7 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 6 Vanguard Interm-Term Bond Index Signal BarCap US Govt/Credit 5-10 Yr TR USD 5 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 3 Vanguard Interm-Term Bond Index Signal -0.21 1.02 99.47 2.02 4.51 0.34 2 BarCap US Govt/Credit 5-10 Yr TR USD 0.00 1.00 100.00 2.07 4.41 0.00 1 Universe(5%) 0.98 0.73 96.58 2.36 3.28 1.89 0 0 1 2 3 4 5 Universe(25%) 0.65 0.62 95.20 2.24 2.80 1.86 Universe(Median) 0.50 0.61 94.50 2.20 2.76 1.84 Total Annualized StdDev, % Universe(75%) 0.41 0.60 94.01 2.17 2.74 1.82 Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Universe(95%) -0.06 0.60 93.18 2.02 2.72 1.41 Cash BarCap US Govt/Credit 5-10 Yr TR USD City of Dover, Delaware Police Pension Plan 20

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard Equity-Income Adm 3.64 4.75 Portfolio Information Investment Strategy Summary % Cash Ticker VEIRX % US Stocks The investment seeks an above-average level of current income and reasonable capital Morningstar Category Large Value % Bonds appreciation. The fund primarily invests in common stocks of medium-sized and large Avg Mkt Cap $MM 56696.60 % Non-US Stocks companies whose stocks pay above-average levels of dividend income and are considered to Cat Med Mkt Cap $MM 39007.61 % Pref have the potential for capital appreciation. In addition, the advisors generally look for Net Assets $MM 8090.75 % Conv companies that they believe are committed to paying dividends consistently. The fund invests Turnover Ratio 29.00 at least 80% of its assets in stocks. It uses multiple investment advisors. % Other % Assets in Top 10 Holdings 32.45 % Non-US Bonds Total Number of Holdings 155.00 __________________________________________________________________________ Manager Name James P. Stetler Manager Tenure 8.25 90.70 Fund Incept Date 03/21/1988 Prospectus Exp Ratio 0.22 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 95.01 % Cash 3.64 30 % Canada 0.00 % US Stocks 90.70 % Latin America 0.00 % Bonds 0.05 % United Kingdom 3.43 % Non-US Stocks 4.75 25 % Eurozone 1.42 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.14 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.86 3 Year Mstar Rating 20 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 12 % 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 11 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 3.70 Avg Eff Duration NA 2 180 % Communication Services 5.01 Effective Maturity NA % Consumer Cyclical 6.40 Avg Credit Quality NA 0 160 % Consumer Defensive 17.58 US Govt/ Agency NA % Healthcare 12.69 AAA NA % Industrials 13.36 AA NA 140 -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.03 A NA % Technology 8.77 BBB NA 120 % Energy 14.20 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 10.95 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 7.31 Below B NA Ratio 100 Vanguard Equity-Income Adm S&P 500 Value Total Return NR/NA NA 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Exxon Mobil Corporation 4.70% 60 Vanguard Equity-Income Adm 8.38 8.38 12.53 24.27 2.96 Chevron Corp 4.11% S&P 500 Value Total Return 12.97 12.97 5.26 23.18 -0.83 CMT Market Liquidity Rate 3.42% 40 Universe(5%) 14.64 14.64 10.37 26.79 3.62 Pfizer Inc 3.40% Universe(25%) 12.69 12.69 6.33 23.21 1.13 Johnson & Johnson 3.06% Universe(Median) 11.30 11.30 4.19 21.53 -0.13 AT&T Inc 2.98% 20 Universe(75%) 9.42 9.42 2.01 19.67 -1.48 Merck & Co Inc 2.88% Universe(95%) 6.54 6.54 -1.98 16.61 -3.60 Philip Morris International, Inc. 2.68% 0 0 Microsoft Corporation 2.66% Prospectus Exp Ratio Turnover Ratio General Electric Co 2.56% City of Dover, Delaware Police Pension Plan 21

Quarterly Investment Monitor Data as of 03/31/2012 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-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -30 Up/Down Market Capture Ratio -40 Apr-09 - Mar-12 200 -50 180 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 160 Up Mkt Capture Ratio, % Vanguard Equity-Income Adm S&P 500 Value Total Return 140 120 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 100 Vanguard Equity-Income Adm -15.58 25.24 13.69 4.52 20.77 4.99 -30.86 17.26 14.99 10.69 S&P 500 Value Total Return -16.59 30.36 15.03 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 80 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 6 2 25 9 0 0 20 40 60 80 100 120 140 160 5 8 Down Mkt Capture Ratio, % 4 20 7 Morningstar Large Value Universe Vanguard Equity-Income Adm Total Annualized StdDev, % Excess Annualized StdDev, % 3 6 S&P 500 Value Total Return 2 15 Sharpe Ratio Alpha, % 1 5 1 0 4 10 Return vs. Risk -1 3 Apr-09 - Mar-12 -2 2 45 -3 5 40 1 Total Annualized Return, % -4 35 -5 0 0 0 30 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 25 Vanguard Equity-Income Adm S&P 500 Value Total Return 20 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 15 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 10 Vanguard Equity-Income Adm 5.39 0.78 95.08 1.64 13.89 4.99 S&P 500 Value Total Return 0.00 1.00 100.00 1.28 17.46 0.00 5 Universe(5%) 4.86 1.18 98.52 1.56 21.77 8.94 0 0 5 10 15 20 25 30 Universe(25%) 1.00 1.02 97.53 1.31 18.41 5.38 Universe(Median) -0.68 0.97 95.87 1.22 17.34 3.89 Total Annualized StdDev, % Universe(75%) -2.24 0.88 92.55 1.13 15.89 3.14 Morningstar Large Value Universe Vanguard Equity-Income Adm Universe(95%) -4.69 0.73 84.97 0.99 13.25 2.27 Cash S&P 500 Value Total Return City of Dover, Delaware Police Pension Plan 22

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard Morgan Growth Adm 2.34 4.96 Portfolio Information Investment Strategy Summary % Cash Ticker VMRAX % US Stocks The investment seeks long-term growth of capital. The fund invests mainly in the stocks of Morningstar Category Large Growth % Bonds mid- and large-capitalization U.S. companies whose revenues and/or earnings are expected Avg Mkt Cap $MM 24514.61 % Non-US Stocks to grow faster than those of the average company in the market. It uses multiple investment Cat Med Mkt Cap $MM 33360.42 % Pref advisors. Net Assets $MM 9444.00 % Conv Turnover Ratio 55.00 __________________________________________________________________________ % Other % Assets in Top 10 Holdings 23.26 % Non-US Bonds Total Number of Holdings 321.00 Manager Name James P. Stetler Manager Tenure 8.25 92.52 Fund Incept Date 12/31/1968 Prospectus Exp Ratio 0.30 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 94.91 % Cash 2.34 35 % Canada 1.17 % US Stocks 92.52 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.91 % Non-US Stocks 4.96 30 % Eurozone 0.98 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.50 % Conv 0.00 Mstar Rating 25 % Europe - Emerging 0.00 % Other 0.18 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 24 % Middle East 0.57 5 Year Mstar Rating 20 % Japan 0.00 % Rank Cat 5 Yr 47 % Australasia 0.40 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 17 15 % Asia - Emerging 0.56 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 3.09 Avg Eff Duration NA 2 300 % Communication Services 1.85 Effective Maturity NA % Consumer Cyclical 15.16 Avg Credit Quality NA 0 % Consumer Defensive 7.05 US Govt/ Agency NA % Healthcare 11.52 AAA NA 250 % Industrials 13.95 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.25 A NA % Technology 34.97 BBB NA 200 % Energy 9.37 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 2.79 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 Below B NA Ratio Vanguard Morgan Growth Adm S&P 500 Growth Total Return NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Apple, Inc. 4.62% 100 Vanguard Morgan Growth Adm 17.21 17.21 7.91 24.70 3.61 International Business Machines Corp 3.27% S&P 500 Growth Total Return 12.27 12.27 11.82 23.76 4.80 Cisco Systems Inc 2.38% Universe(5%) 20.92 20.92 15.28 30.42 8.23 CMT Market Liquidity Rate 2.25% Universe(25%) 17.30 17.30 10.01 25.00 5.32 50 Microsoft Corporation 2.00% Universe(Median) 15.73 15.73 7.55 22.86 3.68 Google, Inc. A 1.97% Universe(75%) 13.97 13.97 4.43 20.64 2.05 EMC Corporation 1.84% Universe(95%) 10.53 10.53 -2.46 16.04 -0.13 Oracle Corporation 1.79% 0 0 Exxon Mobil Corporation 1.59% Prospectus Exp Ratio Turnover Ratio Starbucks Corporation 1.56% City of Dover, Delaware Police Pension Plan 23

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard Morgan Growth Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Apr-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -40 Up/Down Market Capture Ratio Apr-09 - Mar-12 350 -60 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 300 Up Mkt Capture Ratio, % Vanguard Morgan Growth Adm S&P 500 Growth Total Return 250 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 200 Vanguard Morgan Growth Adm -23.38 33.91 10.61 9.32 11.32 11.36 -41.33 36.31 18.90 -2.42 150 S&P 500 Growth Total Return -28.10 27.08 6.97 1.14 11.01 9.13 -34.92 31.57 15.05 4.65 100 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 25 10 0 0 25 50 75 100 125 150 175 200 225 250 2 9 Down Mkt Capture Ratio, % 1 20 8 Morningstar Large Growth Universe Vanguard Morgan Growth Adm Excess Annualized StdDev, % 0 Total Annualized StdDev, % 7 S&P 500 Growth Total Return -1 15 6 Sharpe Ratio -2 Alpha, % -3 1 5 -4 10 4 Return vs. Risk -5 3 Apr-09 - Mar-12 -6 80 5 2 -7 70 1 Total Annualized Return, % -8 60 -9 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 50 Vanguard Morgan Growth Adm S&P 500 Growth Total Return 40 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 30 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 20 Vanguard Morgan Growth Adm -2.17 1.15 96.53 1.30 18.19 4.11 10 S&P 500 Growth Total Return 0.00 1.00 100.00 1.45 15.55 0.00 Universe(5%) 2.73 1.30 97.54 1.50 21.32 9.15 0 0 5 10 15 20 25 30 35 40 Universe(25%) -1.22 1.17 95.92 1.34 18.92 5.99 Universe(Median) -2.75 1.12 94.20 1.24 17.87 4.69 Total Annualized StdDev, % Universe(75%) -4.62 1.06 91.25 1.14 16.89 3.88 Morningstar Large Growth Universe Vanguard Morgan Growth Adm Universe(95%) -8.12 0.93 85.32 0.98 15.05 2.72 Cash S&P 500 Growth Total Return City of Dover, Delaware Police Pension Plan 24

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard PRIMECAP Inv 1.15 Portfolio Information Investment Strategy Summary 13.76 % Cash Ticker VPMCX % US Stocks The investment seeks long-term capital appreciation. The fund invests in stocks considered to Morningstar Category Large Growth % Bonds have above-average earnings growth potential that is not reflected in their current market Avg Mkt Cap $MM 37254.07 % Non-US Stocks prices. Its portfolio consists predominantly of large- and mid-capitalization stocks. Cat Med Mkt Cap $MM 33360.42 % Pref Net Assets $MM 30133.72 % Conv __________________________________________________________________________ Turnover Ratio 8.00 % Other % Assets in Top 10 Holdings 38.01 % Non-US Bonds Total Number of Holdings 116.00 Manager Name Howard B. Schow 85.09 Manager Tenure 27.43 Fund Incept Date 11/01/1984 Prospectus Exp Ratio 0.45 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors Yes % United States 86.08 % Cash 1.15 35 % Canada 3.82 % US Stocks 85.09 % Latin America 0.55 % Bonds 0.00 % United Kingdom 0.82 % Non-US Stocks 13.76 30 % Eurozone 0.62 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 7.47 % Conv 0.00 Mstar Rating 25 % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 78 % Middle East 0.00 5 Year Mstar Rating 20 % Japan 0.64 % Rank Cat 5 Yr 35 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 10 15 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 4.91 Avg Eff Duration NA 2 300 % Communication Services 2.42 Effective Maturity NA % Consumer Cyclical 4.87 Avg Credit Quality NA 0 % Consumer Defensive 1.22 US Govt/ Agency NA % Healthcare 27.57 AAA NA 250 % Industrials 15.69 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.02 A NA % Technology 31.53 BBB NA 200 % Energy 6.62 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 4.79 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.36 Below B NA Ratio Vanguard PRIMECAP Inv S&P 500 Growth Total Return NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Amgen Inc 5.25% 100 Vanguard PRIMECAP Inv 10.37 10.37 2.95 20.25 4.35 Biogen Idec Inc 4.81% S&P 500 Growth Total Return 12.27 12.27 11.82 23.76 4.80 Google, Inc. A 4.08% Universe(5%) 20.92 20.92 15.28 30.42 8.23 Eli Lilly and Company 3.93% Universe(25%) 17.30 17.30 10.01 25.00 5.32 50 FedEx Corporation 3.76% Universe(Median) 15.73 15.73 7.55 22.86 3.68 Texas Instruments, Inc. 3.51% Universe(75%) 13.97 13.97 4.43 20.64 2.05 Roche Holding AG 3.48% Universe(95%) 10.53 10.53 -2.46 16.04 -0.13 Novartis AG ADR 3.24% 0 0 Medtronic, Inc. 3.00% Prospectus Exp Ratio Turnover Ratio Microsoft Corporation 2.95% City of Dover, Delaware Police Pension Plan 25

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard PRIMECAP Inv Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Apr-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -40 Up/Down Market Capture Ratio Apr-09 - Mar-12 350 -60 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 300 Up Mkt Capture Ratio, % Vanguard PRIMECAP Inv S&P 500 Growth Total Return 250 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 200 Vanguard PRIMECAP Inv -24.56 37.75 18.31 8.49 12.30 11.49 -32.41 34.45 12.89 -1.84 150 S&P 500 Growth Total Return -28.10 27.08 6.97 1.14 11.01 9.13 -34.92 31.57 15.05 4.65 100 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 25 10 0 0 25 50 75 100 125 150 175 200 225 250 2 9 Down Mkt Capture Ratio, % 1 20 8 Morningstar Large Growth Universe Vanguard PRIMECAP Inv Excess Annualized StdDev, % 0 Total Annualized StdDev, % 7 S&P 500 Growth Total Return -1 15 6 Sharpe Ratio -2 Alpha, % -3 1 5 -4 10 4 Return vs. Risk -5 3 Apr-09 - Mar-12 -6 80 5 2 -7 70 1 Total Annualized Return, % -8 60 -9 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 50 Vanguard PRIMECAP Inv S&P 500 Growth Total Return 40 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 30 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 20 Vanguard PRIMECAP Inv -4.44 1.08 95.83 1.16 17.13 3.70 10 S&P 500 Growth Total Return 0.00 1.00 100.00 1.45 15.55 0.00 Universe(5%) 2.73 1.30 97.54 1.50 21.32 9.15 0 0 5 10 15 20 25 30 35 40 Universe(25%) -1.22 1.17 95.92 1.34 18.92 5.99 Universe(Median) -2.75 1.12 94.20 1.24 17.87 4.69 Total Annualized StdDev, % Universe(75%) -4.62 1.06 91.25 1.14 16.89 3.88 Morningstar Large Growth Universe Vanguard PRIMECAP Inv Universe(95%) -8.12 0.93 85.32 0.98 15.05 2.72 Cash S&P 500 Growth Total Return City of Dover, Delaware Police Pension Plan 26

Quarterly Investment Monitor Data as of 03/31/2012 Vanguard Mid-Cap Value Index Admiral Portfolio Information Investment Strategy Summary % Cash Ticker VMVAX % US Stocks The investment seeks to track the performance of a benchmark index that measures the Morningstar Category Mid-Cap Value % Bonds investment return of mid-capitalization value stocks. The fund employs a "passive Avg Mkt Cap $MM 5285.62 % Non-US Stocks management"--or indexing--investment approach designed to track the performance of the Cat Med Mkt Cap $MM 6390.21 % Pref MSCI US Mid Cap Value Index, a broadly diversified index of value stocks of medium-size U.S. Net Assets $MM 1855.71 % Conv companies. It attempts to replicate the target index by investing all, or substantially all, of its Turnover Ratio 41.00 assets in the stocks that make up the index, holding each stock in approximately the same % Other % Assets in Top 10 Holdings 8.98 proportion as its weighting in the index. % Non-US Bonds Total Number of Holdings 266.00 Manager Name Donald M. Butler __________________________________________________________________________ Manager Tenure 5.62 98.81 Fund Incept Date 08/17/2006 Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 99.38 % Cash 0.57 35 % Canada 0.00 % US Stocks 98.81 % Latin America 0.00 % Bonds 0.00 30 % United Kingdom 0.20 % Non-US Stocks 0.62 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 25 Total Annualized Return, % % Europe - ex Euro 0.43 % Conv 0.00 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 15 20 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 43 15 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.00 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 10 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 6.93 Avg Eff Duration NA 2 300 0 % Communication Services 1.56 Effective Maturity NA % Consumer Cyclical 12.22 Avg Credit Quality NA -5 % Consumer Defensive 8.06 US Govt/ Agency NA % Healthcare 5.48 AAA NA 250 % Industrials 12.01 AA NA -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 10.18 A NA % Technology 10.96 BBB NA 200 % Energy 4.29 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 16.71 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 11.62 Below B NA Ratio Vanguard Mid-Cap Value Index Admiral MSCI US Mid Cap 450 Index USD NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Humana 1.30% 100 Vanguard Mid-Cap Value Index Admiral 11.22 11.22 3.04 28.95 1.62 AvalonBay Communities Inc 1.09% MSCI US Mid Cap 450 Index USD 13.43 13.43 2.79 28.97 3.03 Health Care REIT, Inc. 0.92% Universe(5%) 17.53 17.53 7.65 33.89 6.14 Genuine Parts Company 0.85% Universe(25%) 14.16 14.16 2.81 28.29 4.22 50 Mattel, Inc. 0.84% Universe(Median) 13.01 13.01 1.47 26.09 2.41 Liberty Interactive Corp A 0.82% Universe(75%) 10.44 10.44 -1.27 22.80 0.89 DTE Energy Holding Company 0.82% Universe(95%) 7.57 7.57 -5.27 16.89 -2.58 Cooper Industries PLC. 0.79% 0 0 J.M. Smucker Co. 0.79% Prospectus Exp Ratio Turnover Ratio Dr Pepper Snapple Group, Inc. 0.76% City of Dover, Delaware Police Pension Plan 27

Quarterly Investment Monitor Data as of 03/31/2012 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-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -20 Up/Down Market Capture Ratio -40 Apr-09 - Mar-12 250 -60 225 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 200 Up Mkt Capture Ratio, % Vanguard Mid-Cap Value Index Admiral MSCI US Mid Cap 450 Index USD 175 150 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 125 Vanguard Mid-Cap Value Index Admiral NA NA NA NA NA -4.28 -36.62 37.79 21.83 -0.29 MSCI US Mid Cap 450 Index USD -16.46 39.05 20.52 13.94 13.75 6.19 -41.80 40.49 25.69 -1.91 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 3 2 30 12 0 0 25 50 75 100 125 150 175 200 225 2 Down Mkt Capture Ratio, % 25 10 1 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Total Annualized StdDev, % Excess Annualized StdDev, % 0 MSCI US Mid Cap 450 Index USD 20 8 -1 Sharpe Ratio Alpha, % -2 1 15 6 -3 Return vs. Risk 10 4 -4 Apr-09 - Mar-12 60 -5 5 2 -6 50 Total Annualized Return, % -7 0 0 0 40 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Mid-Cap Value Index Admiral MSCI US Mid Cap 450 Index USD 30 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 20 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Mid-Cap Value Index Admiral 0.21 0.99 97.48 1.39 19.80 3.15 10 MSCI US Mid Cap 450 Index USD 0.00 1.00 100.00 1.39 19.70 0.00 Universe(5%) 2.95 1.30 99.15 1.49 26.56 11.42 0 0 5 10 15 20 25 30 35 40 45 Universe(25%) -0.67 1.05 98.39 1.34 21.13 7.08 Universe(Median) -1.76 1.00 95.49 1.27 19.99 4.65 Total Annualized StdDev, % Universe(75%) -4.26 0.91 91.79 1.16 18.53 2.88 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Universe(95%) -6.49 0.67 79.04 1.02 14.59 1.91 Cash MSCI US Mid Cap 450 Index USD City of Dover, Delaware Police Pension Plan 28

Quarterly Investment Monitor Data as of 03/31/2012 DFA US Targeted Value I Portfolio Information Investment Strategy Summary % Cash Ticker DFFVX % US Stocks The investment seeks long-term capital appreciation. The fund normally invests in a broad Morningstar Category Small Value % Bonds and diverse group of common stocks of U.S. small and mid cap companies that the Advisor Avg Mkt Cap $MM 1318.98 % Non-US Stocks determines to be value stocks. It normally invests at least 80% of net assets in securities of Cat Med Mkt Cap $MM 1224.87 % Pref U.S. companies. The Advisor considers for investment companies whose market capitalization Net Assets $MM 2967.17 % Conv are generally smaller than the 500th largest U.S. company. The fund may use derivatives, Turnover Ratio 23.00 such as futures contracts and options on futures contracts for U.S. equity securities and % Other % Assets in Top 10 Holdings 7.04 indices. It may also lend its portfolio securities to generate additional income. % Non-US Bonds Total Number of Holdings 1532.00 Manager Name Stephen A. Clark __________________________________________________________________________ Manager Tenure 4.01 99.18 Fund Incept Date 02/23/2000 Prospectus Exp Ratio 0.38 Phone Number 888-576-1167 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 99.32 % Cash 0.15 40 % Canada 0.01 % US Stocks 99.18 % Latin America 0.13 % Bonds 0.00 35 % United Kingdom 0.02 % Non-US Stocks 0.67 % Eurozone 0.07 % Pref 0.00 Portfolio Ratings 30 Total Annualized Return, % % Europe - ex Euro 0.40 % Conv 0.00 Mstar Rating % Europe - Emerging 0.02 % Other 0.00 3 Year Mstar Rating 25 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 31 % Middle East 0.00 5 Year Mstar Rating 20 % Japan 0.00 % Rank Cat 5 Yr 64 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 35 15 % Asia - Emerging 0.01 10 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 8.74 Avg Eff Duration NA 2 180 0 % Communication Services 1.53 Effective Maturity NA % Consumer Cyclical 16.07 Avg Credit Quality NA 160 -5 % Consumer Defensive 5.69 US Govt/ Agency NA % Healthcare 6.85 AAA NA % Industrials 16.12 AA NA 140 -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.06 A NA % Technology 12.06 BBB NA 120 % Energy 8.54 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 23.94 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.39 Below B NA Ratio 100 DFA US Targeted Value I S&P SmallCap 600 Value Total Return NR/NA NA 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Ashland Inc 0.80% 60 DFA US Targeted Value I 11.98 11.98 -3.22 29.03 1.18 Plains Exploration & Production Company 0.78% S&P SmallCap 600 Value Total Return 12.86 12.86 4.68 28.05 2.14 NASDAQ OMX Group, Inc. 0.75% 40 Universe(5%) 17.29 17.29 5.18 36.55 5.91 Coventry Health Care, Inc. 0.72% Universe(25%) 12.68 12.68 2.45 29.93 3.72 Rowan Companies, Inc. 0.70% Universe(Median) 11.36 11.36 0.38 27.33 2.16 Mohawk Industries, Inc. 0.68% 20 Universe(75%) 9.76 9.76 -2.42 25.61 0.52 Reinsurance Group of America Inc 0.67% Universe(95%) 7.26 7.26 -5.25 22.38 -1.14 Arrow Electronics Inc 0.65% 0 0 Hologic Inc 0.65% Prospectus Exp Ratio Turnover Ratio Tesoro Corporation 0.64% City of Dover, Delaware Police Pension Plan 29

Quarterly Investment Monitor Data as of 03/31/2012 DFA US Targeted Value I 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-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -20 Up/Down Market Capture Ratio -40 Apr-09 - Mar-12 160 -60 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 140 Up Mkt Capture Ratio, % DFA US Targeted Value I S&P SmallCap 600 Value Total Return 120 100 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 80 DFA US Targeted Value I -9.66 54.07 24.68 9.26 19.70 -8.19 -33.78 31.87 29.01 -6.29 S&P SmallCap 600 Value Total Return -13.23 40.03 20.77 8.36 19.57 -5.54 -29.51 22.85 24.72 -1.38 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 8 2 30 14 0 0 20 40 60 80 100 120 140 160 7 12 Down Mkt Capture Ratio, % 6 25 Morningstar SmallCap Value Universe DFA US Targeted Value I Total Annualized StdDev, % Excess Annualized StdDev, % 5 10 20 S&P SmallCap 600 Value Total Return 4 Sharpe Ratio 8 Alpha, % 3 1 15 2 6 Return vs. Risk 1 10 Apr-09 - Mar-12 0 4 50 -1 5 2 45 Total Annualized Return, % -2 40 -3 0 0 0 35 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 30 DFA US Targeted Value I S&P SmallCap 600 Value Total Return 25 20 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 15 DFA US Targeted Value I -0.88 1.08 97.99 1.14 25.17 4.00 10 S&P SmallCap 600 Value Total Return 0.00 1.00 100.00 1.19 23.10 0.00 5 Universe(5%) 7.33 1.14 98.40 1.47 27.82 13.47 0 0 5 10 15 20 25 30 35 40 Universe(25%) 2.89 1.02 97.17 1.28 23.94 8.27 Universe(Median) 1.31 0.94 95.46 1.22 22.17 5.33 Total Annualized StdDev, % Universe(75%) -0.02 0.86 90.60 1.17 20.53 4.15 Morningstar SmallCap Value Universe DFA US Targeted Value I Universe(95%) -2.34 0.69 82.09 1.07 16.66 3.12 Cash S&P SmallCap 600 Value Total Return City of Dover, Delaware Police Pension Plan 30

Quarterly Investment Monitor Data as of 03/31/2012 DFA International Value I Portfolio Information Investment Strategy Summary % Cash Ticker DFIVX % US Stocks The investment seeks long-term capital appreciation. The fund is a Feeder Portfolio and Morningstar Category Foreign Large Value % Bonds pursues its objective by investing substantially all of its assets in its corresponding master Avg Mkt Cap $MM 21256.58 % Non-US Stocks fund, The DFA International Value Series of The DFA Investment Trust Company. The Cat Med Mkt Cap $MM 24743.00 % Pref International Value Series intends to purchase stocks of large companies associated with Net Assets $MM 5606.74 % Conv developed market countries that the Advisor has designated as approved markets. It may Turnover Ratio 9.00 gain exposure to companies associated with approved markets by purchasing equity % Other % Assets in Top 10 Holdings 18.40 securities in the form of depositary receipts, which may be listed or traded outside the % Non-US Bonds Total Number of Holdings 559.00 issuer's domicile country. Manager Name Karen E. Umland Manager Tenure 13.26 __________________________________________________________________________ 99.69 Fund Incept Date 02/15/1994 Prospectus Exp Ratio 0.45 Phone Number 888-576-1167 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 0.00 % Cash 0.30 25 % Canada 12.28 % US Stocks 0.00 % Latin America 0.00 % Bonds 0.00 % United Kingdom 20.59 % Non-US Stocks 99.69 20 % Eurozone 27.80 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 9.67 % Conv 0.00 Mstar Rating 15 % Europe - Emerging 0.00 % Other 0.01 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 15 % Middle East 0.56 5 Year Mstar Rating 10 % Japan 20.86 % Rank Cat 5 Yr 49 % Australasia 5.48 10 Year Mstar Rating % Asia - Developed 2.75 % Rank Cat 10 Yr 8 5 % Asia - Emerging 0.00 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -5 % Basic Materials 12.67 Avg Eff Duration NA 2 180 % Communication Services 8.30 Effective Maturity NA % Consumer Cyclical 12.75 Avg Credit Quality NA -10 160 % Consumer Defensive 5.26 US Govt/ Agency NA % Healthcare 1.81 AAA NA % Industrials 9.83 AA NA 140 -15 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 1.44 A NA % Technology 4.06 BBB NA 120 % Energy 14.49 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 25.98 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 3.41 Below B NA Ratio 100 DFA International Value I MSCI EAFE Large Value NR USD NR/NA NA 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Royal Dutch Shell PLC ADR 3.48% 60 DFA International Value I 11.34 11.34 -11.58 19.41 -4.27 Vodafone Group PLC ADR 3.17% MSCI EAFE Large Value NR USD 9.21 9.21 -7.71 16.24 -5.33 BP PLC ADR 2.53% 40 Universe(5%) 15.63 15.63 0.68 23.77 1.22 Daimler AG 1.65% Universe(25%) 12.83 12.83 -4.27 19.61 -1.23 Suncor Energy Inc 1.50% Universe(Median) 11.75 11.75 -6.39 17.35 -2.85 Vodafone Group PLC 1.35% 20 Universe(75%) 10.81 10.81 -8.20 15.75 -4.27 Xstrata PLC 1.26% Universe(95%) 8.19 8.19 -13.45 12.69 -6.57 Wesfarmers Ltd 1.18% 0 0 GDF Suez 1.16% Prospectus Exp Ratio Turnover Ratio Bayerische Motoren Werke AG 1.12% City of Dover, Delaware Police Pension Plan 31

Quarterly Investment Monitor Data as of 03/31/2012 DFA International Value I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Apr-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -40 Up/Down Market Capture Ratio Apr-09 - Mar-12 225 -60 200 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Up Mkt Capture Ratio, % 175 DFA International Value I MSCI EAFE Large Value NR USD 150 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 125 DFA International Value I -8.52 49.93 28.80 15.27 34.15 10.24 -46.33 39.45 10.57 -16.85 100 MSCI EAFE Large Value NR USD -12.95 40.28 21.43 11.58 29.78 6.51 -44.41 33.98 1.81 -11.47 75 50 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 9 2 30 11 0 0 20 40 60 80 100 120 140 160 180 200 8 10 Down Mkt Capture Ratio, % 7 25 9 Morningstar Foreign Stock Universe DFA International Value I Total Annualized StdDev, % Excess Annualized StdDev, % 6 8 20 MSCI EAFE Large Value NR USD 5 7 Sharpe Ratio Alpha, % 4 6 1 15 3 5 Return vs. Risk 2 4 10 Apr-09 - Mar-12 1 3 35 0 5 2 30 Total Annualized Return, % -1 1 -2 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 DFA International Value I MSCI EAFE Large Value NR USD 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 10 DFA International Value I 1.85 1.08 96.83 0.82 25.16 4.82 5 MSCI EAFE Large Value NR USD 0.00 1.00 100.00 0.76 22.97 0.00 Universe(5%) 8.35 1.04 95.80 1.10 24.97 10.55 0 0 5 10 15 20 25 30 35 40 45 Universe(25%) 4.36 0.93 93.61 0.92 22.55 8.71 Universe(Median) 2.26 0.90 90.53 0.84 21.58 7.23 Total Annualized StdDev, % Universe(75%) 1.17 0.85 86.46 0.78 20.53 5.99 Morningstar Foreign Stock Universe DFA International Value I Universe(95%) -1.80 0.72 80.53 0.65 18.05 4.96 Cash MSCI EAFE Large Value NR USD City of Dover, Delaware Police Pension Plan 32

Quarterly Investment Monitor Data as of 03/31/2012 American Funds New Perspective R6 5.62 1.34 Portfolio Information Investment Strategy Summary % Cash Ticker RNPGX 39.09 % US Stocks The investment seeks long-term growth of capital and future income as its secondary Morningstar Category World Stock % Bonds objective. The fund normally invests in stocks of companies located around the world to take Avg Mkt Cap $MM 39113.66 % Non-US Stocks advantage of investment opportunities generated by changes in international trade patterns Cat Med Mkt Cap $MM 22522.41 % Pref and economic and political relationships. In pursuing its primary investment objective, it Net Assets $MM 43040.72 % Conv invests primarily in common stocks that the investment adviser believes have the potential Turnover Ratio 24.00 for growth. In pursuing its secondary objective, the fund invests in common stocks of % Other % Assets in Top 10 Holdings 18.14 companies with the potential to pay dividends in the future. % Non-US Bonds Total Number of Holdings 264.00 Manager Name Gregg E. Ireland __________________________________________________________________________ 53.23 Manager Tenure 19.34 Fund Incept Date 03/13/1973 Prospectus Exp Ratio 0.46 Phone Number 800-421-0180 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 42.34 % Cash 5.62 30 % Canada 4.75 % US Stocks 39.09 % Latin America 2.55 % Bonds 0.72 25 % United Kingdom 8.23 % Non-US Stocks 53.23 % Eurozone 15.69 % Pref 0.00 Portfolio Ratings 20 Total Annualized Return, % % Europe - ex Euro 10.52 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 1.34 3 Year Mstar Rating % Africa 3.05 % Non-US Bonds 0.00 % Rank Cat 3 Yr 42 15 % Middle East 0.00 5 Year Mstar Rating % Japan 5.65 % Rank Cat 5 Yr 11 10 % Australasia 1.72 10 Year Mstar Rating % Asia - Developed 4.39 % Rank Cat 10 Yr 22 % Asia - Emerging 1.09 5 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 9.07 Avg Eff Duration NA 3 200 -5 % Communication Services 3.21 Effective Maturity NA % Consumer Cyclical 13.83 Avg Credit Quality NA 180 -10 % Consumer Defensive 13.01 US Govt/ Agency NA % Healthcare 13.89 AAA NA 160 % Industrials 13.58 AA NA -15 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.24 A NA % Technology 15.70 BBB NA 140 2 % Energy 7.02 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 9.30 B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 1.15 Below B NA Ratio American Funds New Perspective R6 MSCI World NTR NR/NA NA 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Novo Nordisk A/S 4.29% 1 60 American Funds New Perspective R6 13.84 13.84 1.26 20.97 3.11 Apple, Inc. 1.96% MSCI World NTR 11.56 11.56 0.56 20.24 -0.70 Google, Inc. 1.72% Universe(5%) 17.16 17.16 8.77 28.35 5.62 Newmont Mining Corporation 1.66% 40 Universe(25%) 14.85 14.85 3.19 22.65 2.15 British American Tobacco PLC 1.65% Universe(Median) 12.65 12.65 -0.83 20.40 -0.05 Amazon.com Inc 1.62% 20 Universe(75%) 9.87 9.87 -4.03 18.26 -1.68 Barrick Gold Corporation 1.37% Universe(95%) 4.29 4.29 -12.40 13.25 -3.71 Home Depot, Inc. 1.35% 0 0 Nestle SA 1.27% Prospectus Exp Ratio Turnover Ratio America Movil, S.A.B. de C.V. ADR 1.24% City of Dover, Delaware Police Pension Plan 33

Quarterly Investment Monitor Data as of 03/31/2012 American Funds New Perspective R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Apr-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -40 Up/Down Market Capture Ratio Apr-09 - Mar-12 160 -60 140 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 120 Up Mkt Capture Ratio, % American Funds New Perspective R6 MSCI World NTR 100 80 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 60 American Funds New Perspective R6 -16.05 36.76 14.27 11.28 19.87 16.04 -37.83 37.73 13.11 -7.33 MSCI World NTR -19.89 33.11 14.72 9.49 20.07 9.04 -40.71 29.99 11.76 -5.54 40 20 0 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error -20 8 2 25 12 -40 -20 0 20 40 60 80 100 120 140 160 6 Down Mkt Capture Ratio, % 10 20 Morningstar World Stock Universe American Funds New Perspective R6 Total Annualized StdDev, % Excess Annualized StdDev, % 4 8 MSCI World NTR 15 Sharpe Ratio 2 Alpha, % 1 6 0 10 Return vs. Risk 4 Apr-09 - Mar-12 -2 35 5 -4 2 30 Total Annualized Return, % 25 -6 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 15 American Funds New Perspective R6 MSCI World NTR 10 5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 0 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -5 American Funds New Perspective R6 1.07 0.98 97.36 1.14 18.01 2.96 -10 MSCI World NTR 0.00 1.00 100.00 1.10 18.22 0.00 -15 Universe(5%) 7.33 1.24 98.18 1.46 24.29 11.81 -20 0 5 10 15 20 25 30 35 Universe(25%) 3.32 1.10 96.41 1.20 20.98 8.29 Universe(Median) 0.23 1.05 92.84 1.09 19.81 6.04 Total Annualized StdDev, % Universe(75%) -2.11 0.90 87.23 0.96 17.76 4.06 Morningstar World Stock Universe American Funds New Perspective R6 Universe(95%) -5.20 0.66 73.37 0.79 13.49 2.94 Cash MSCI World NTR City of Dover, Delaware Police Pension Plan 34

Quarterly Investment Monitor Data as of 03/31/2012 Harding Loevner Global Equity Inst 2.44 Portfolio Information Investment Strategy Summary % Cash 49.87 Ticker HLMVX % US Stocks The investment seeks long-term capital appreciation. The fund invests in companies based in Morningstar Category World Stock % Bonds the U.S. and other developed markets, as well as in emerging and frontier markets. It invests Avg Mkt Cap $MM 29014.85 % Non-US Stocks at least 80% of net assets in common stocks, preferred stock, rights and warrants issued by Cat Med Mkt Cap $MM 22522.41 % Pref companies that are based both inside and outside the United States, securities convertible Net Assets $MM 254.49 % Conv into such securities and investment companies that invest in the types of securities in which Turnover Ratio 40.00 the fund would normally invest. The fund normally holds 35-75 investments across at least 15 % Other % Assets in Top 10 Holdings 29.93 countries. % Non-US Bonds Total Number of Holdings 68.00 Manager Name Ferrill Roll __________________________________________________________________________ 47.69 Manager Tenure 11.17 Fund Incept Date 11/29/1996 Prospectus Exp Ratio 0.95 Phone Number 877-435-8105 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 51.12 % Cash 0.00 30 % Canada 0.90 % US Stocks 49.87 % Latin America 2.19 % Bonds 0.00 25 % United Kingdom 4.42 % Non-US Stocks 47.69 % Eurozone 8.77 % Pref 0.00 Portfolio Ratings 20 Total Annualized Return, % % Europe - ex Euro 8.18 % Conv 0.00 Mstar Rating % Europe - Emerging 2.36 % Other 2.44 3 Year Mstar Rating % Africa 1.16 % Non-US Bonds 0.00 % Rank Cat 3 Yr 33 15 % Middle East 0.00 5 Year Mstar Rating % Japan 10.13 % Rank Cat 5 Yr 10 10 % Australasia 1.52 10 Year Mstar Rating % Asia - Developed 3.69 % Rank Cat 10 Yr 29 % Asia - Emerging 5.58 5 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 4.75 Avg Eff Duration NA 3 200 -5 % Communication Services 3.28 Effective Maturity NA % Consumer Cyclical 14.59 Avg Credit Quality NA 180 -10 % Consumer Defensive 13.13 US Govt/ Agency NA % Healthcare 6.52 AAA NA 160 % Industrials 16.52 AA NA -15 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 A NA % Technology 20.55 BBB NA 140 2 % Energy 6.32 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 14.34 B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 Below B NA Ratio Harding Loevner Global Equity Inst MSCI World NTR NR/NA NA 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Wells Fargo & Co 3.52% 1 60 Harding Loevner Global Equity Inst 15.90 15.90 4.62 22.10 3.66 Li & Fung Ltd. 3.48% MSCI World NTR 11.56 11.56 0.56 20.24 -0.70 Unicharm Corp 3.21% Universe(5%) 17.16 17.16 8.77 28.35 5.62 Nestle SA ADR 3.15% 40 Universe(25%) 14.85 14.85 3.19 22.65 2.15 Apple, Inc. 3.04% Universe(Median) 12.65 12.65 -0.83 20.40 -0.05 Google, Inc. A 3.04% 20 Universe(75%) 9.87 9.87 -4.03 18.26 -1.68 Fanuc Corp 2.81% Universe(95%) 4.29 4.29 -12.40 13.25 -3.71 Emerson Electric Co. 2.59% 0 0 eBay Inc 2.58% Prospectus Exp Ratio Turnover Ratio EMC Corporation 2.51% City of Dover, Delaware Police Pension Plan 35

Quarterly Investment Monitor Data as of 03/31/2012 Harding Loevner Global Equity Inst Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Apr-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Mar-12 -40 Up/Down Market Capture Ratio Apr-09 - Mar-12 160 -60 140 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 120 Up Mkt Capture Ratio, % Harding Loevner Global Equity Inst MSCI World NTR 100 80 Annual Return % 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 60 Harding Loevner Global Equity Inst -18.96 31.51 7.61 16.65 17.84 16.39 -38.29 40.16 15.55 -8.22 MSCI World NTR -19.89 33.11 14.72 9.49 20.07 9.04 -40.71 29.99 11.76 -5.54 40 20 0 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error -20 8 2 25 12 -40 -20 0 20 40 60 80 100 120 140 160 6 Down Mkt Capture Ratio, % 10 20 Morningstar World Stock Universe Harding Loevner Global Equity Inst Total Annualized StdDev, % Excess Annualized StdDev, % 4 8 MSCI World NTR 15 Sharpe Ratio 2 Alpha, % 1 6 0 10 Return vs. Risk 4 Apr-09 - Mar-12 -2 35 5 -4 2 30 Total Annualized Return, % 25 -6 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 15 Harding Loevner Global Equity Inst MSCI World NTR 10 5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 0 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -5 Harding Loevner Global Equity Inst 2.29 0.96 95.84 1.20 17.88 3.71 -10 MSCI World NTR 0.00 1.00 100.00 1.10 18.22 0.00 -15 Universe(5%) 7.33 1.24 98.18 1.46 24.29 11.81 -20 0 5 10 15 20 25 30 35 Universe(25%) 3.32 1.10 96.41 1.20 20.98 8.29 Universe(Median) 0.23 1.05 92.84 1.09 19.81 6.04 Total Annualized StdDev, % Universe(75%) -2.11 0.90 87.23 0.96 17.76 4.06 Morningstar World Stock Universe Harding Loevner Global Equity Inst Universe(95%) -5.20 0.66 73.37 0.79 13.49 2.94 Cash MSCI World NTR City of Dover, Delaware Police Pension Plan 36

Quarterly Investment Monitor Data as of 03/31/2012 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 negative risk. Specifically, the higher the percentage, the more concentrated the fund is in a few companies or issues, and the more the fund is 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 the Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while market price of its stock by the company’s per-share book value. Stocks with negative book values are excluded from this calculation. In shorter maturities and higher coupons shorten duration. The relationship between funds with different durations is straightforward: A 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 indicates fund with a duration of 10 years is twice as volatile as a fund with a five-year duration. Morningstar prints an average effective duration that the stock is a bargain. 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 holding consideration mortgage prepayments, puts, calls, adjustable coupons, and other features of individual bonds and is thus a more by the percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund’s final P/E. accurate measure of interest-rate sensitivity. Longer-maturity funds are generally considered more interest-rate sensitive than their shorter counterparts. R-Squared Beta Reflects the percentage of a fund’s movements that can be explained by movements in its benchmark index. An R-squared of 100 indicates that all movements of a fund can be explained by movements in the index. Thus, index funds that invest only in S&P 500 stocks will have an A measure of a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. Morningstar calculates beta by R-squared very close to 100. Conversely, a low R-squared indicates that very few of the fund’s movements can be explained by movements comparing a fund’s excess return over Treasury bills to the market's excess return over Treasury bills, so a beta of 1.10 shows that the in its benchmark index. An R-squared measure of 35, for example, means that only 35% of the fund’s movements can be explained by fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other factors movements in the benchmark index. remain constant. Conversely, a beta of 0.85 indicates that the fund’s excess return is expected to perform 15% worse than the market’s excess return during up markets and 15% better during down markets. Sharpe Ratio The Morningstar Rating The Sharpe Ratio is a risk-adjusted measure developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the portfolio’s historical risk-adjusted performance. Commonly called the Star Rating, is a measure of a fund's risk-adjusted return, relative to funds in its category. Funds are rated from It can be used to compare two portfolios directly on how much excess return each portfolio achieved for a certain level of risk. one to five stars, with the best performers receiving five stars and the worst performers receiving a single star. Standard Deviation Risk-adjusted return is calculated by subtracting a risk penalty from each fund total return, after accounting for all loads, sales charges, and redemption fees. The risk penalty is determined by the amount of variation in the fund's monthly return, with emphasis on Standard deviation is the statistical measurement of dispersion about an average, which depicts how widely a stock or portfolio’s returns downward variation. The greater the variation, the larger the penalty. Funds are ranked within their categories and stars are assigned as 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 follows: Top 10% five stars; Next 22.5% four stars; Middle 35% three stars; Next 22.5% two stars; Bottom 10% one star. most likely for a given investment. When a stock or portfolio has a high standard deviation, the predicted range of performance is wide, implying greater volatility. Audited Expense Ratio Total Number of Holdings The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV . Sales charges 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 are not included in the expense ratio. 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 holdings. This figure also provides a context for the importance of % assets in top 10 holdings. The figure is calculated from the most recent Geometric Average Market Capitalization 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 Total Return owns. It's calculated by raising the market capitalization of each stock to a power equal to that stock's stake in the portfolio. The resulting numbers are multiplied together to produce the geometric mean of the market caps of the stocks in the portfolio, which is Expressed in percentage terms, Morningstar’s calculation of total return is determined each month by taking the change in monthly net asset reported as average market capitalization. value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAV. Reinvestments are made This number is different from the fund's median market cap--the capitalization of the median stock in its portfolio. The geometric mean using the actual reinvestment NAV, and daily payoffs are reinvested monthly. better identifies the portfolio's "center of gravity." That is, it provides more accurate insight into how market trends (as defined by capitalization) might affect the portfolio. Turnover Ratio Net Assets This is a measure of the fund’s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily suggest 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, that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the agility, and popularity. They help determine whether a small company fund, for example, can remain in its investment-objective portfolio’s holdings that have changed over the past year. category if its asset base reaches an ungainly size. 12-Month Yield Also known as a distribution yield, Morningstar computes this figure by summing the trailing 12-month’s income distributions and dividing the sum by the last month’s ending NAV, plus any capital gains distributed over the same period. Income refers only to interest payments from fixed-income securities and dividend payoffs from common stocks. City of Dover, Delaware Police Pension Plan 37

Quarterly Investment Monitor Data as of 03/31/2012 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 38