Attachment

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD AGENDA NOVEMBER 13, 2014 - 11:00 A.M. CITY HALL CONFERENCE ROOM 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Adoption of Minutes - OPEB Board Meeting of August 14, 2014 2. Quarterly Performance Review (Quarter Ending September 30, 2014) (Milliman, Inc.) (Staff Recommends Acceptance of the Report) 3. Update on Pacific Investment Management Company (PIMCO) (Milliman, Inc.) 4. Adjournment by 11:55 a.m. TO ASSURE THAT THERE WILL BE A QUORUM, PLEASE RSVP BY CONTACTING THE CITY CLERK’S OFFICE BY EMAIL AT CITYCLERK@DOVER.DE.US OR BY CALLING 736-7008 AS SOON AS POSSIBLE. /js S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Misc-Agendas\OPEB\2014\11-13-2014 OPEB BOARD.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD The Other Post-Employment Benefits (OPEB) Board meeting was held on August 14, 2014 at 11:06 a.m with Chairwoman Mitchell presiding. Members present were Mrs. Williams and Mr. Koenig. Mr. Hare and Mrs. Hawkins were absent. AGENDA ADDITIONS/DELETIONS By unanimous consent, the agenda was approved as presented. Adoption of Minutes - OPEB Board Meeting of May 1, 2014 Mr. Koenig moved for adoption of the minutes of the OPEB Board meeting of May 1, 2014, seconded by Mrs. Williams and unanimously carried. Organizational Issues - Election of Chair Mrs. Mitchell opened the floor for nominations for Chair of the OPEB Board. Mr. Koenig moved to nominate Mrs. Mitchell to serve as Chair. The motion failed for lack of a second. Mrs. Mitchell moved to nominate Mr. Koenig to serve as Chair, seconded by Mrs. Williams. By unanimous consent, nominations were closed. By unanimous consent, Mr. Koenig was elected to serve as Chair of the OPEB Board. Quarterly Performance Review (Quarter Ending June 30, 2014)/Investment Manager Recommendations (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, Milliman, Inc., reviewed the Board Meeting Notes dated August 14, 2014, Mr. Marzinsky advised members that plan assets totaled approximately $18.3M, an increase from $16.8M at the end of the previous quarter, noting that contributions had been made to the fund. He indicated that performance for the quarter was approximately 4%, which was in line with the plan benchmark performance of 4.41%. Mr. Marzinsky explained that returns for the quarter were slightly low as some cash was held because of contributions made; however, since funds were now fully invested, it was expected that current returns would be generally in line with targets. The return for the last one (1) year period was approximately 15%. As discussed during the Board’s previous meeting held on May 1, 2014, Mr. Marzinsky stated that the portfolio was slightly more conservative compared to “the middle of the road.” Members were advised that the plan’s asset allocation was in line with the allocation targets and that funds are rebalanced to the approximate asset allocation each quarter or when contributions are made to the plan. In response to Mrs. Williams regarding why the portfolio was heavily invested in Vanguard funds, Mr. Marzinsky stated that expenses for Vanguard’s actively managed funds are generally slightly lower compared to other managers and Vanguard is the standard for index funds. Mr. Marzinsky reviewed the Quarterly Investment Monitor - Summary Report for the Quarter Ending June 30, 2014. Referring to Page 3, Market Indices - 2nd Quarter 2014, he explained that

OPEB MEETING OF AUGUST 14, 2014 PAGE 2 overall and fixed income markets for the year to date had been “pretty good.” Interest rates had fallen since the beginning of the year and some of the issues seen in emerging markets internationally were beginning to resolve. Mr. Marzinsky stated that the Federal Reserve had indicated that they would monitor the strength of the U.S. economy and keep interest rates low. Long-term bonds were at approximately 3% - 4% and short-term bonds at approximately 0% - 2%. In reference to Page 9 - Asset Allocation, Mr. Marzinsky advised members that allocations were generally in line with targets. Responding to Mrs. Williams regarding the amount of funds that the City invests in the plan, Mrs. Mitchell stated that the City invests a percentage of payroll, which varies according to the specific City Fund, e.g., approximately 60% of payroll is invested from the Electric Fund. She stated the dollar amount was approximately $831,000 for the quarter ending June 30, 2014 and $2.7M for FY 2014. Mr. Koenig confirmed that $2.7M was contributed for the year, noting that the return was approximately 15%. Mr. Marzinsky stated that the funded status of the plan was improving when the contributions and positive return were considered. Mrs. Mitchell advised members that payments for retiree health care premiums are made from the City’s cash account rather than from plan investments. Responding to Mrs. Williams regarding the actual return on the plan, Mr. Marzinsky explained, for example, that if a contribution is made on the fifth day of the month, its return is counted on the day this activity happens. Since newly invested contributions are time weighted, 15% was the actual return for the fund last year. Referring to Page 10 - Investment Policy Review - Active Management, Mr. Marzinsky explained that it was desired for funds to rank from 0 - 50 and to have a return in excess of their indices. Generally, funds met these goals, and some ranked in the top 3% - 5%, including the Oppenheimer International Growth Y Fund. He noted that the Target Small Capitalization Value T Fund was slightly more conservative and diversified than other funds and showed slight underperformance; however, its relative standard deviation of 0.91 indicated that this fund was less risky than the market index, and three (3) year Alpha and Sharpe values showed good manager effectiveness. Other investments ranked in the top half or better in their categories. Mr. Marzinsky stated that there were no recommendations for changes in the plan at this time. In reference to Page 12 - Investment Option Return Summary, Mr. Marzinsky informed members that the Net Return revealed an approximate 4% return for the quarter, 6.5% for the year to date, 15% for the last year, and over 8% for the last three (3) years, which he stated were “pretty good” returns. Annual Review of Investment Policy Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, Milliman, Inc., reviewed the draft Investment Policy Statement - City of Dover OPEB Board, August 2014, which he stated had been

OPEB MEETING OF AUGUST 14, 2014 PAGE 3 prepared by streamlining the Board’s current policy. He explained that the policy defined the roles and responsibilities of the Board, the investment consultant, and the plan custodian and would also serve as an instruction manual for the Board on managing fund assets. Mr. Marzinsky advised members that the policy statement defined objectives; stated how assets will be invested, managers selected and monitored, and allocations developed; and established a formal policy for monitoring performance and the development of quarterly reports. It also established a timeline for the performance expectations of the plan. Mrs. Mitchell advised members that she had compared the August 2014 draft policy with the City’s current policy, as well as the draft Investment Policy Statement provided by Mr. Marzinsky during the Board’s meeting held on May 1, 2014. In her opinion, the August 2014 draft streamlined and clarified the policy and was a much better document than the current policy, which was developed by Peirce Park Group, the City’s previous investment manager, approximately five (5) years ago. Mr. Marzinsky explained that the Investment Policy Statement defined the policies and procedures of the Board and the Strategic Asset Allocation Policy was Appendix A to the document. If the Board opted to change fund asset allocations, these changes would need to be made only to Appendix A, not the body of the policy. Mrs. Williams inquired if the City’s financial status would be impacted by the procedure and policy portion of the document if the financial climate became better or worse. Responding, Mr. Marzinsky stated that the investment guidelines contained in the main body of the policy would be used to invest contributions appropriately regardless of the financial climate. Mrs. Mitchell informed members that the policy would be reviewed annually in August. Referring to Page 3 - Section II. Statement of Objectives - Item #9, she explained that members of the Civilian and Police Pension Boards, who had reviewed similar investment policies during their meetings held earlier in the day, were not comfortable with the stated objective to “Attain a funded status such that the employer has the option to terminate the plan if deemed appropriate,” and amended this to read “Attain a funded status such that the employer has the option to discontinue contributions if the plan is fully funded and deemed appropriate.” Mrs. Williams felt that this objective would place control of the plan with bureaucracy, rather than elected officials who have final fiduciary responsibility. She expressed her discontent with the formation of the Board, which she felt was not balanced properly in that there were two (2) Council members and three management representatives. Mr. Koenig stated that all union contracts allow for retirement health care; therefore, the City could not terminate the plan. Mrs. Williams stated that if the plan were not funded, it would be essentially terminated. She felt that elected officials, by the City’s charter, should have final responsibility in determining what happens to the operating assets of the City. Responding, Mr. Koenig stated that this fund was not an asset of the City but rather a trust fund. He explained that Council has the authority to adopt a

OPEB MEETING OF AUGUST 14, 2014 PAGE 4 budget which indicates that an amount of money will be transferred to this trust fund; however, Council does not have the authority to close the trust and if Council did not fund it, there would be a legal claim from those involved in the trust. Mr. Marzinsky stated that the plan funds benefits to employees which are guaranteed and would have to be paid, whether or not funds were available in the trust, possibly out of operating assets. Mr. Koenig stated that the trust was created to show that the City was addressing the unfunded liability for OPEB, as required by Generally Accepted Accounting Principles (GAAP); therefore, there was a fiduciary responsibility on Council’s part to fund the trust to offset the liability. Mrs. Williams questioned if these funds could be accessed in a forced choice, if all of the current beneficiaries were paid out and Council needed the money for the City’s survival. Responding, Mrs. Mitchell stated that funds cannot be taken out once placed in the trust. Mr. Marzinsky questioned if new beneficiaries were entering this plan. Mrs. Mitchell responded affirmatively and noted that this would continue as long as new employees continued to receive a retirement benefit. Mrs. Williams stated that she had changed her opinion regarding the Board’s structure and, since Council’s responsibility was to fund the plan, the OPEB fund should be more controlled by staff. Mrs. Mitchell moved to change the wording of Section II. Statement of Objectives, Item #9 to read, “Attain a funded status such that the employer has the option to discontinue contributions to the plan if deemed appropriate and fully funded. Mrs. Williams requested that the motion be amended to remove the phrase “fully funded” and Mrs. Mitchell concurred. Mrs. Mitchell moved to amend Section II. Statement of Objectives, Item #9 of the City of Dover OPEB Board Investment Policy Statement to read, as follows: “Attain a funded status such that the employer has the option to terminate the plan if deemed appropriate”, seconded by Mrs. Williams and unanimously carried. Mr. Marzinsky reiterated that Pages 1-14 of the policy included operational and procedural language and, if approved, this portion of the document would remain standard unless different oversight or monitoring methods were required by the government. Appendix A would be revised if there were asset allocation changes. Responding to Mrs. Williams regarding the entity responsible for asset allocation, Mrs. Mitchell stated that Council had the authority to set up the plan and establish the benefit levels; however, management and allocation of the assets were the responsibility of the Board. Responding to Mrs. Williams, Mr. Koenig stated that the policy would be signed by the Board Chairperson.

OPEB MEETING OF AUGUST 14, 2014 PAGE 5 Mrs. Mitchell moved for adoption of the Investment Policy Statement, as amended, (Attachment #1), seconded by Mr. Koenig and unanimously carried. Mr. Marzinsky reviewed the City of Dover, Delaware Other Postemployment Benefit (OPEB) Asset Allocation Study - July 2014, that was included with the Quarterly Investment Monitor - Summary Report for the Quarter Ending June 30, 2014. He explained that members had previously discussed the possibility of changing the plan’s asset allocation to attempt to achieve a higher level of return. Referring to Page 2, Optimization Input Review, he informed members that, at least annually, Milliman, Inc. sets return expectations for the various asset classes. An expected level of risk is also established, and this is reflected in the Annual Standard Deviation. For example, he explained that emerging markets are expected to return approximately 11%, with an annual standard deviation of 30.05; consequently, the risk component could result in a return of approximately 40% or could decline to -20%. Mr. Marzinsky indicated that, in developing a portfolio, assets are mixed to obtain an acceptable rate of return and level of risk. Referring to Page 3 - Input Correlation, he stated that this information reflected how likely different assets are to move up or down at the same time, noting that the goal is to obtain a mix of investments. In reference to Page 4 - Individual Constraints and Group Constraints, Mr. Marzinsky stated that minimum and maximum limitations are set so that funds are not fully invested in any one (1) category and a good mix is obtained. Referring to Page 5 - Portfolio Options, Mr. Marzinsky explained that the fund’s Current Asset Allocation of approximately 60% stocks and 40% bonds had an expected return of approximately 6.67% for the year. Noting that the plan’s one (1) year return through June 30, 2014 was approximately 15%, he stated that the plan was exceeding this benchmark. He noted that the expected return was considered when developing actuarial projections and that approximately 7% - 7.5% was used for actuarial purposes. The expected return of 6.67% was slightly less; however, he noted that expectations for equities had been lowered since the markets had risen over the last few years and equities could not be anticipated to continue to rise indefinitely. Mr. Marzinsky stated that he developed three (3) alternative sample portfolios that could potentially increase returns but would also increase volatility and therefore risk. He questioned members if there was interest in adjusting the asset allocation or leaving it at the current level. Mrs. Williams expressed concern with a more aggressive portfolio since she believed that most corporate and small business employers were waiting for the current administration in Washington, D. C. to leave office before making investments. She stated her preference to remain conservative for the next year. She felt that there could be a surge in the market in the future since companies had been sitting on cash for some time, depending on the next administration. Mr. Marzinsky confirmed that many companies were holding onto cash and not making investments, although they were paying some dividends. Mrs. Mitchell advised members that during meetings held earlier in the day, the Civilian Pension Board selected Sample Portfolio #1, which would modestly increase equities from 60% to approximately 67% and reduce fixed income from approximately 40% to 33% to try to attain the

OPEB MEETING OF AUGUST 14, 2014 PAGE 6 actuarial assumption rate of return and improve the funded level of the plan. She stated that the Police Pension Board had opted to not make any change at this time since their Chairman was not present. Mr. Koenig stated his preference for Sample Portfolio #2. Mrs. Mitchell indicated that she favored Sample Portfolio #1. Mrs. Williams stated that she preferred not to make any change from the current portfolio. Mr. Marzinsky reminded members that asset categories and investments were not locked in and could be changed at the next meeting if desired. Responding to Mr. Koenig regarding when payments would be made from the fund, Mrs. Mitchell stated that OPEB payments were already being made; however, they are made from the City’s operating funds and the remaining contributions are invested through Milliman, Inc. Mr. Koenig expressed his opinion that the investment cycle was on the upswing. He felt, personally, that Sample Portfolio #2 should be selected since only $18M had been set aside for the $100M OPEB liability. It was his belief that the Board should adopt a portfolio that was more aggressive; however, stated that he would concur with adopting Sample Portfolio #1 as a “middle ground.” Mrs. Mitchell moved to adopt Sample Portfolio #1, seconded by Mr. Koenig, and carried by a roll call vote of two (2) yes (Mitchell and Koenig) and one (1) no (Williams). (City Clerk’s Office Note: The City of Dover OPEB Board Strategic Asset Allocation Policy is Appendix A to the Investment Policy Statement.) Future Meeting Dates Mrs. Donna Mitchell, Controller/Treasurer, moved for approval of the proposed meeting dates, as follows: November 14, 2014; February 12, 2015; May 14, 2015; and August 13, 2015, seconded by Mr. Koenig and unanimously carried. (City Clerk’s Office Note: All meetings were intended to be scheduled for the second Thursday of the month, according to the Board’s previous practice. The November date was listed as the 14th due to a typographical error and the meeting was subsequently scheduled for November 13, 2014.) Mrs. Williams moved for adjournment, seconded by Mr. Koenig and unanimously carried. Meeting adjourned at 11:58 a.m. Scott D. Koenig Chairman SK/JS/dd S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Misc-Minutes\OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD\2014\08-14-2014 OPEB.wpd Attachment Attachment #1 - Investment Policy Statement - City of Dover OPEB Board - August 2014

ATTACHMENT #1 OPEB Board Meeting of 08/14/2014 INVESTMENT POLICY STATEMENT CITY OF DOVER OPEB BOARD August 2014

INVESTMENT POLICY STATEMENT CITY OF DOVER OPEB PLAN Table of Contents Section Page I. Purpose and Background 2 II. Statement of Objectives 3 Ill. Control Procedures & Responsibilities 4 IV. Investment & Allocation Policy 7 v. Investment Manager Guidelines 9 VI. Selection of Investment Managers 11 VII. Investment Evaluation 12 Appendix

Investment Policy Statement City of Dover OPEB Plan I. PURPOSE & BACKGROUND The City of Dover OPEB Plan is a post retirement employee benefit program established for the purpose of funding retiree health care and life insurance as provided for in Article VI of Chapter 2 of the City Ordinances. The OPEB fund shall constitute a trust fund that shall be separate and distinct from all other funds, including the pension funds established by Article IV of Chapter 2 (General Employee Pension Plan) and Article Ill of Chapter 62 (OPEB Plan) of the City Ordinances (City Code) . The purpose of this Investment Policy Statement ("IPS") is to assist the participants of the plan who serve as members of the OPEB Board of the City of Dover ("Board") under Section 2-202 of the City of Dover Code of Ordinances, this Investment Policy Statement ("Statement") presents investment objectives, policies, guidelines, and monitoring and review procedures relating to financial assets (the "Fund") of the City of Dover OPEB Plan ("Plan"). The IPS will function to: 1. State in a written document the Board's expectations, objectives, and guidelines for the investment of Plan assets which the Board judges to be appropriate and prudent, in consideration of the needs of the Plan. 2. Define and assign the responsibilities for the oversight of the Plan's assets. 3. Set forth an investment structure for managing Plan assets. This structure will help to define asset class, Investment Manager styles, asset allocation and acceptable ranges that, combined, will help to generate the risk/return profile needed to meet the objectives of this policy. 4. Encourage effective communication between the Board and the Investment Consultant, as well as any other interested parties. 5. Establish formalized performance criteria that the Investment Managers selected are expected to meet and against which they are to be measured on a regular basis. 6. Serve as a review document to guide Board and Investment Consultant oversight of the investment options of the Plan's assets. 7. Establish the relevant investment time horizon, risk tolerances and performance expectations of the Plan assets and the Board. Page 2 of 14

Investment Policy Statement City of Dover OPEB Plan II. STATEMENT OF OBJECTIVES The assets of the Plan are invested under the supervision of the Board. After reviewing expected short-term and long-term cash flow requirements of the plan, as well as considering the investment time horizon and risk tolerance level believed to be appropriate for the invested assets, the following set of objectives has been established: 1. Preservation of capital. 2. Pay all benefit and expense obligations when due. 3. Achieve a funding cushion to reduce the impact of possible future downturns in the plan's funded status. 4. Achieve or exceed actuarial earnings assumptions. 5. If applicable, effectively manage the funded status volatility and mitigate undue risk exposure under a Liability Driven Investment (LDI) strategy. The approach can assist in managing interest rate and inflationary risks. 6. Control risk exposure through reasonable and rational diversification of the assets into various asset classes. 7. Establish policies based on total return and expected projected payouts rather than current income. 8. Contain costs of administering and managing the portfolio. 9. Attain a funded status such that the employer has the option to discontinue contributions to the plan if deemed appropriate. Page 3 of 14

Investment Policy Statement City of Dover OPEB Plan Ill. CONTROL PROCEDURES & RESPONSIBILITIES Disclosure Any member of the Board, Custodian/Directed Trustee or Investment Consultant must make full disclosure of any potential conflicts of interest, including any financial gain that may be received as a result of investment decisions made by those entities, which may be required by applicable law. This disclosure should be made before the investment of the plan assets governed by this Investment Policy Statement. Disclosure should be in written form and presented to the members of the Board. Delegation of Authority and Responsibilities The Board is charged under Section 18-51 of the City of Dover Code of Ordinances with overall responsibility for investment of the Fund. To assist the Board in this function, it is authorized and permitted by said Ordinances to appoint an Investment Advisor, Investment Manager or IM(s), including for this purpose banks, insurance companies, and firms registered under the Investment Advisers Act of 1940 and/or Delaware State law, to manage (including the power to acquire and dispose of) Plan assets. Any appointed Investment Advisor must agree to conduct itself in accordance with all applicable City of Dover Ordinances. The Board shall be responsible for approving any changes to this Investment Policy Statement, and shall be responsible for reviewing the implementation of the Investment Policy Statement not less frequently than annually. These responsibilities include, but are not limited to : Board The Board will be responsible for establishing investment objectives, investment policy and monitoring and review procedures. The establishment of standards for measuring, monitoring, evaluating and comparing absolute and relative investment performance to assure that investment returns are reviewed on a regular basis and investment return objectives are met during acceptable periods of time. The establishment of authorization, reporting, control, review and general governance procedures to assure that investment policies and guidelines are reviewed on a regular basis and conformed to at all times. All modifications of policies and/or guidelines shall be in writing, signed by all Board members, and delivered on a timely basis to any IM and/or Custodian affected by such changes. The establishment of, through contractual relationships with recognized and carefully selected professional organizations, or by alternative means satisfactory to the Board, a retirement plan management structure which will assure appropriate investment management, custody, and surveillance or compliance procedures to meet investment objectives in conformity with the Board's stated investment policies and guidelines. The Board will have discretion to select, add, replace or remove Investment Managers that will be used to meet the Plan's investment objectives, consistent with the recommendations and advice of the Investment Consultant. Page 4 of 14

Investment Policy Statement City of Dover OPEB Plan Investment Consultant The Investment Consultant will be responsible for: providing recommendations to the Board for the selection of Investment Managers and appropriate asset allocation, consistent with the Investment Policy Statement objectives and guidelines; reviewing the performance of such Investment Managers over time; periodically reviewing and providing recommendations to the Board for revisions to the Investment Policy Statement; and other tasks as deemed appropriate by the Board. The Investment Consultant will act in a non-discretionary capacity. Custodian/Directed Trustee The Custodian/Directed Trustee appointed by the Board will be responsible for the safekeeping of the fund assets, including all transaction settlements and deliveries and will perform regular accounting of all assets owned, purchased or sold, as well as transactions and movement of assets into and out of the Plan account. Fund safekeeping and securities settlement procedures shall include direct Custodian participation in one or more appropriate securities depositories (e.g., Depository Trust Company, New York) and, as necessary, correspondent participation in other major depositories (e.g., the Federal Reserve System). The Plan's beneficial ownership of all assets shall be inviolate and in all circumstances perfected. Board or designated IM authority to direct all investment transactions shall similarly be protected. The Directed Trustee will maintain possession of securities owned by the Plan, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales. The Directed Trustee will also be responsible for the payments to such persons and for such purposes in order to provide benefits to plan participants and the remittance of any tax related payments to the applicable State and Federal bodies. Fiduciary insurance, and officer liability and omissions and errors insurance coverages, of any Custodian, must meet standards set by the Board from time to time. Investment Manager(s) The specific responsibilities of the Investment Manager(s) relating to the investment management of the fund include: 1. Managing the Plan assets under its care, custody, and/or control in accordance with their Investment Policy Statement ('IPS') or Prospectus objectives and guidelines set forth herein. 2. Exercising investment discretion (including holding cash equivalents as an alternative) within their IPS or Prospectus objective and guidelines set forth herein. 3. Promptly communicating all significant and/or material matters and changes pertaining to the investment of Plan assets, including, but not limited to: i. Investment strategy. ii. Portfolio structure. iii. Tactical approaches. iv. Ownership. v. Organizational structure . Page 5 of 14

Investment Policy Statement City of Dover OPEB Plan vi. Financial condition. vii. Professional staff. viii. All legal material and SEC and other regulatory agency proceedings affecting the firm . 4. Promptly voting all proxies and related actions in a manner consistent with the long-term interests and objectives of the Plan set forth herein. Each manager shall keep detailed records of said voting and proxies and related actions and will comply with all regulatory obligations related thereto. 5. Utilize the same care, skill, prudence, and due diligence under the circumstances then prevailing that experienced, investment professionals acting in a like capacity and fully familiar with such matters would use in like activities for like benefit plans with like aims in accordance and compliance with all applicable laws, rules, and regulations from local, state, and federal political entities as the pertain to fiduciary duties and responsibilities. The investments should be relatively liquid, or with a reasonable amount of notice, should be capable of liquidating to cash. There should be no fees or penalties for regular trading or liquidation. Page 6 of 14

Investment Policy Statement City of Dover OPEB Plan IV. INVESTMENT AND ALLOCATION POLICY Investment Horizon: The investment guidelines are based on the expectation that the investment horizon will be several years in length. Short-term variability in returns should be expected. Because of this, the Plan's strategic asset allocation is established with moderate to long-term perspective in mind. The Plan is required to pay retirement benefits to participants as they come due. Therefore, sufficient liquid reserves must be available to satisfy this obligation. 1. The actuary will provide future benefit payment amounts, funding and contribution requirements. 2. The plan should hold a portion of assets in short-term and cash holdings to provide for the schedule of future benefit payments. Risk Tolerances: It is understood by the Board that achieving the Plan's investment objectives is not guaranteed and there will be time periods for which these objectives will not be met. The Board also recognizes that some risk must be assumed to achieve the Plan's investment objectives and accepts the inevitable fluctuations in returns that will occur. While it is understood that a certain level of risk is expected in the Plan's portfolio, the ability to withstand short and intermediate term variability was specifically considered in the development of the IPS risk tolerances. Factors considered were: 1. It is the intention to fund at least the minimum required contribution (MRC) each year providing ample liquidity. 2. Due to the amount of payouts to occur for many years into the future, the Plan's liabilities exhibit a longer duration (sensitivity to changes in interest rates). As a result, extending durations in the fixed income portion of Plan assets should be considered. 3. The cash balance portion of the plan's liabilities grows at the rate ofT-bill + 1%. Future liability growth will be factored into all investment decisions. As a result of the above-named considerations, the Board believes that the Plan can tolerate some interim variability in market value and rates of return in order to achieve its long-term objectives. Allowable Investments: Cash and Equivalents, Mutual Funds, Separate Accounts, Options and Futures Contracts, Stocks, Bonds, Commingled Funds, and Collective Trusts, Exchange Traded Funds (ETFs) Liquidity Policy: The trust will be required to provide periodic distributions in the form of retirement benefit payments to participants. The actuary provides annual assessments of the funding requirements and payments necessary to meet the plans benefit obligations. Page 7 of 14

Investment Policy Statement City of Dover OPEB Plan Overall Asset Allocation Policy Based on the Plan's time horizon, risk tolerances, liquidity needs, and asset class preferences and constraints, an efficient or optimal portfolio was identified. This allocation shall be reviewed at least annually and modified as necessary to meet the needs of the Board. [See Appendix A for the Strategic Asset Allocation Policy of the Plan.] The current allocation strategy is dynamic in nature under a Liability Drive Investment (LDI) approach. The allocation shall be reviewed periodically, at least annually, and modified as necessary to de-risk the plan, based on the funded status. The overall performance of the portfolio relative to the liabilities will be reviewed in addition to actual performance of the managers. Rebalancing: Rebalancing is the periodic adjustment of the portfolio to restore a pre-defined Target asset allocation, an_d will be reviewed at least once per calendar quarter, or as such when the allocation of any asset class exceeds the range around its respective target. Change in Funding Target Level Based on the asset allocation glidepath and funding target levels outlined in the Asset Allocation Policy, an increase in the Plan funding ratio that elevates the plan to a new increment level will trigger a rebalancing of Plan assets to the new targets. If the Plan funding ratio decreases and meets a lower target level, the plan will not rebalance to the new target asset allocation. Timing Rebalancing reviews generally take place quarterly, or at a frequency determined by appropriate by the Board. Generally, the rebalancing transactions will occur over a period of time to reduce undue market timing risk. The Plan will diversify its investment portfolio to avoid incurring unreasonable risks. Investment maturities should be scheduled to coincide with projected cash flow requirements. As funded status improves, the asset allocation policy targets will reduce equity investments and increase fixed income investments and "de-risk" the plan portfolio. Page 8 of 14

Investment Policy Statement City of Dover OPEB Plan V. INVESTMENT MANAGER GUIDELINES Every Investment Manager selected to manage Plan assets shall be selected by their policy or ability to adhere to these general guidelines; however will have discretion to meet the investment objectives of their portfolio or investment fund. Unless receiving prior Board approval, the only allowable investments of the Plan will be in cash and equivalents, mutual funds, separate accounts, commingled funds, options and futures, stocks, bonds, exchange traded funds (ETFs) and collective trusts: Cash Policy Cash equivalents will be invested in an appropriate cash-like fund. Returns should be equal to or better than the 90-day Treasury Bill Index (3-month). Money market mutual funds may be used, so long as these funds meet the high standards suitable for funds of this nature. Fixed Income Policy Investment Objectives These assets are to be invested in a mutual fund, commingled funds, separate accounts, or collective trusts of high-grade index or active fixed income portfolio subject to the limitations set forth below. The investment objectives of the fixed income portion in order of importance are: 1. Preservation of capital 2. Provide for regular dividend and or interest payments 3. Stability of returns- obtain fairly consistent annual returns. Investment Guidelines The Plan's fixed income assets will be managed in accordance with the following: 1. All funds selected for the fixed income portion must have a readily ascertainable market value and must be readily marketable. 2. Investment Managers selected will be diversified and generally conform to industry guidelines. 3. The Investment Managers shall have discretion to invest a portion of the assets in cash reserves when they deem appropriate. However, the Investment Managers will be evaluated against their peers on the performance of the total funds under their direct management. Page 9 of 14

Investment Policy Statement City of Dover OPEB Plan Equity Policy Investment Objectives Equity assets are to be invested in mutual funds, commingled funds, separate accounts, stocks, bonds, options and futures, exchange traded funds (ETFs) or collective trusts. Within this framework, the investment objectives of the equity portion are: 1. Long Term Growth of Capital - Assets, exclusive of contribution and withdrawals, should grow in the long run and earn returns equal to the market while risk should be less than the market. 2. Follow a predefined market style (e.g. large cap vs. small cap, value vs. growth) strategy. Investment Guidelines The Plan's equity assets will be managed in accordance with the following: 1. All funds selected for the equity portion must have a readily ascertainable market value and must be readily marketable. 2. Investment Managers selected will be diversified and generally conform to industry guidelines. 3. The Investment Managers shall have discretion to invest a portion of the assets in cash reserves when they deem appropriate. However, the Fund Managers will be evaluated against their peers on the performance of the total funds under their direct management. Page 10 of 14

Investment Policy Statement City of Dover OPEB Plan VI. SELECTION OF INVESTMENT MANAGERS The Board, with the assistance of the Investment Consultant, will select appropriate Investment Managers to manage the Plan assets. Investment Managers must meet the following minimum criteria: 1. Is a bank, insurance company, investment management company, or investment advisor as defined by the Registered Investment Advisers Act of 1940. 2. Provide at a minimum, historical quarterly performance numbers calculated on a time-weighted basis, based on a composite of all the fully discretionary accounts of similar investment style, arid reported net and gross of fees. 3. Provide performance evaluation reports prepared by an objective third party that illustrate the risk/return profile of the Investment Manager relative to other managers of like investment style. 4. Provide detailed information on the history of the firm, key personnel, key clients, fee schedule, and support personnel. This information can be supplied by a third party vendor comparable to Lipper or Morningstar. S. Clearly articulate the investment strategy that will be followed and document that the strategy has been successfully adhered to over time. 6. Investment Managers will be ranked within the top SO percent of their respective styles on the Investment Consultant's internal ranking program when available. 7. Some of the measures that may be included in the statistical analysis of a fund would be: a. Alpha- a measure of fund performance compared to its expected return b. Beta- the general level of influence a fund's market has over its performance c. Standard Deviation- a measure of a fund's variation of returns over time d. Sharpe Ratio- a measure of a fund's risk-adjusted return compared to its risk e. Duration- a measure of sensitivity to interest rate fluctuations over time 8. The Board will consider replacing an actively managed fund if the rank versus its peer group remains in the bottom SO percent for four consecutive quarters versus its peer group and if statistical analysis concludes that the fund's level of return does not provide an acceptable ratio as compared to its general level of risk. 9. The Board may consider a fund for replacement when the Investment Manager or policy of the fund is changed. In addition, if there are any substantial transactions with regard to the fund management company or holding, or other types of instabilities in the fund company, replacement will be considered. 10. The Board may also consider replacing a fund if its relative performance over a complete market cycle trails its benchmark. Page 11 of 14

Investment Policy Statement City of Dover OPEB Plan VII. INVESTMENT EVALUATION Not more than 90 days after the end of each calendar quarter, the Investment Consultant shall report investment positions and performance results to the Board, based on performance reported by each Fund Manager, to monitor and evaluate progress toward the attainment of longer-term targets. The target rate of return for the Plan has been based on the assumption that future real returns will approximate the long-term rates of return experienced for each asset class in the IPS. The real rate of return is the return in excess of the anticipated rate of inflation as measured by the Consumer Price Index (CPI). Total Plan Portfolio Performance: Over a complete business cycle, the Plan's overall annualized total return (net of expenses) should perform at or above the Plan Benchmark. The Plan Benchmark is a customized index composed of the following benchmarks for each target asset class and based on the current and prior target asset allocation policy for the Plan: Asset Category Index* Cash & Money Market BofA ML 3-month T-bill Total Return Index Short-term Bond Barclays US Govt/Credit 1-3 Yr TR USD Inflation Protected Bond Barclays US Treasury US TIPS TR USD Intermediate-term Bond Barclays US Govt 5-10 Yr TR USD Long-term Bond BC Long Government/Credit High Yield Bond BC High Yield Corporate Bond Large Cap Value S&P 500 Value Large Cap Blend S&P 500 Index Large Cap Growth S&P 500 Growth Mid Cap Value S&P 400 Value M id Cap Blend S&P 400 Index Mid Cap Growth S&P 400 Growth Small Cap Value S&P 600 Value Small Cap Blend S&P 600 Index Small Cap Growth S&P 600 Growth World Stock MSCI AC World Index ND USD Diversified Emerging Markets FTSE Emerging NR USD REIT/Real Estate MSCI US REIT NR USD *Or other index as designated by the fund and/or fund manager as an appropriate target benchmark for the investment portfolio or fund. Page 12 of 14

Investment Policy Statement City of Dover OPEB Plan Individual Investment Managers: During its periodic meetings but not less than annually, the Board will review the following specifics with regard to each Investment Manager: 1. The manager's adherence to their prospectus. 2. Material changes in the manager's organization, investment philosophy, and/or personnel. 3. Performance compared against an appropriate peer group and benchmark, as listed in the Executive Summary of this IPS, over various time periods. The Board expects the following criteria to be met by each Investment Manager. If a manager fails to meet these, a further review of the manager will be warranted . The Board reserves the right to replace an Investment Manager at their discretion at any time. 1. The Investment Manager's rank (3-year and 5-year return) versus its peer group is over 50 (where a percentile ranking of 1 would be the highest a fund could achieve and 100 would be the lowest). If a fund or Investment Manager's rank (3-year and 5-year return) versus its peer group is over 50, the fund will warrant a closer analytic review. The Board's review will be comprised of a further analysis of the fund's statistical performance and risk measures. 2. The Investment Manager's risk over 3 to 5 years, as measured by standard deviation, should be equal to or lower than the comparative index. If the standard deviation is higher than the index, an increase in performance is expected. 3. The Investment Manager's Sharpe ratio should be positive over 3 to 5 years and ranked above the peer group median. 4. The Investment Manager's Alpha should be positive over a 3 to 5 year period and ranked above the peer group median. Page 13 of 14

Investment Policy Statement City of Dover OPEB Plan SIGNATURE This Statement of Investment Policy approved by action of the Board. Approved by: Date approved : Page 14 of 14

Investment Policy Statement City of Dover OPEB Plan APPENDIX A This Appendix to the Investment Policy Statement has been reviewed and approved by the Board: STRATEGIC ASSET ALLOCATION POLICY (1) Asset Class Target Cash & Short-Term Bond 8% Inflation-Protected Bond 5% Intermediate Term Bond 6% Long-Term Bond 7% High Yield Bond 7% Large Value 12% Large Growth 13% Mid Cap Equity 7% Small Cap Equity 9% Foreign Equity 10% Diversified Emerging Mkts 9% Real Estate 7% 100% The above ranges will be considered the long-term or policy allocation. The current "Policy" is the Target for such respective Asset Class of investment. There will be a Range of +/- 5% to the Ta~get to allow for modest market fluctuations before rebalancing of the portfolio. The portfolio will be reviewed at least quarterly and adjusted as necessary to maintain alignment with the target allocations. Any deviations beyond the "Range" must have prior approval by the Board, unless caused by market actions. To indicate approval of this amendment to the Investment Policy Statement, the appropriate designated Board member shall sign below. This Appendix to the Statement of Investment Policy approved by action of the Board. Approved by: Date approved : Controller/Treasurer

250 Washington Ave Ext Albany, NY 12203 USA Tel +1 518 514 7157 Fax +1 518 514 7200 MEMO milliman.com To: City of Dover, Delaware OPEB Plan – Board From: Jeff Marzinsky & Matt Albano/Milliman Re: Board Meeting Notes Enclosures: Milliman Quarterly Investment Monitor Report (QIM) 1. OPEB Plan Investment Review through 9/30/2014: a. At quarter end, the plan had assets of $18.08 million, down slightly from $18.3 million at the beginning of the quarter. During the quarter, the plan had no contributions, no withdrawals, and fees of approximately $1.3 thousand. b. Total performance of the plan portfolio was -1.35% net (-1.27% gross) for the quarter, generally in line with the Plan’s benchmark index performance of -1.38%. City of Dover OPEB Trust Quarterly Return Summary OPEB-NET OPEB-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 10/31/2013 $ 14,133,687.50 $ 831,375.00 $ - $ 1,250.00 $ 418,671.21 $ 15,382,483.71 2.89% 2.91% 11/30/2013 $ 15,382,483.71 $ - $ - $ - $ 83,574.03 $ 15,466,057.74 0.54% 0.57% 12/31/2013 $ 15,466,057.74 $ 831,375.00 $ - $ - $ 143,868.07 $ 16,441,300.81 0.92% 0.94% 1/31/2014 $ 16,441,300.81 $ - $ - $ 1,250.00 $ (213,186.73) $ 16,226,864.08 -1.30% -1.27% 2/28/2014 $ 16,226,864.08 $ - $ - $ - $ 510,659.53 $ 16,737,523.61 3.15% 3.17% 3/31/2014 $ 16,737,523.61 $ - $ - $ - $ 74,959.75 $ 16,812,483.36 0.45% 0.47% 4/30/2014 $ 16,812,483.36 $ - $ - $ 1,250.00 $ 111,368.23 $ 16,922,601.59 0.66% 0.69% 5/31/2014 $ 16,922,601.59 $ - $ - $ - $ 324,015.99 $ 17,246,617.58 1.91% 1.94% 6/30/2014 $ 17,246,617.58 $ 831,375.00 $ - $ - $ 246,653.89 $ 18,324,646.47 1.37% 1.40% 7/31/2014 $ 18,324,646.47 $ - $ - $ 1,250.00 $ (213,840.59) $ 18,109,555.88 -1.17% -1.14% 8/31/2014 $ 18,109,555.88 $ - $ - $ - $ 502,641.23 $ 18,612,197.11 2.78% 2.80% 9/30/2014 $ 18,612,197.11 $ - $ - $ - $ (536,229.50) $ 18,075,967.61 -2.88% -2.86% $ - $ - $ 1,250.00 $ (247,428.86) Quarterly Return -1.35% -1.27% $ 2,494,125.00 $ - $ 5,000.00 $ 1,453,155.11 One Year Return 9.53% 9.86% c. As of quarter end, the Plan’s asset allocation was in line with the allocation targets approved at the last meeting; the plan was rebalanced on its quarterly schedule prior to quarter end. Fund Target Asset Category Description Category Investment Name Allocation Asset Allocation Range Money Market CA WELLS FARGO ADVANTAGE CASH INVESTMENT FUND 2.00% 3-13%; target 8% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 6.00% 3-13%; target 8% Cash + STB Inflation Protected Bonds TIPS Vanguard Inflation Prot Sec 5.00% 5-10%; target of 5% TIPS Intermediate Term Bonds INTB PIMCO Total Return 3.00% 1-11%; target 6% INTB Intermediate Term Bonds INTB Vanguard Total Bond Mkt Index Signal 3.00% 1-11%; target 6% INTB Long Term Bonds LTB PIMCO Long Duration 3.50% 2-12%; target 7% LTB Long Term Bonds LTB Vanguard Long Duration 3.50% 2-12%; target 7% LTB High Yield Bond HYB Ivy High Income I 7.00% 2-12%; target 7% HYB Large Cap Value LCV American Funds Washington Mutual 12.00% 7-17%; target 12% LCV Large Cap Blend LCB Vanguard 500 Index 0.00% REMOVED Large Cap Growth LCG Vanguard Growth Index 13.00% 8-18%; target 13% LCG Mid Cap MCV Vanguard Mid Cap Value Index 7.00% 2-12%; target 7% MC Small Cap SCV Target Small Cap Value 9.00% 4-14%; target 9% SC Real Estate Investment REIT Vanguard REIT Index 7.00% 2-12%; target 7% REIT Foreign Equity GLB American Funds New Perspective 5.00% 5-15%; target 10% FOR Foreign Equity FLG Oppenheimer Intl Growth Y 5.00% 5-15%; target 10% FOR Foreign Equity GLB Harding Loevner Global Equity 0.00% REMOVED Emerging Markets EMG Vanguard Emerging Mkts 9.00% 4-14%; target 9% Emg Mkts Offices in Principal Cities Worldwide DOCUMENT PAGE 1

Meeting Notes Page 2 d. The majority of the plan investments have performance and rankings in line with their peer groups and benchmarks, as well as risk analytics that rank well to their peer groups. i. The plan includes the PIMCO Total Return and Long Duration as bond managers.  During the year PIMCO has had a variety of management changes within the organization with the resignation of their CEO during March, and the recent departure of Bill Gross, manager of the Total Return fund. With the changes in management of the organization, we recommend placing a watch on all PIMCO funds to review stability of management within the organization and their investment management teams. In addition, since there was a change in management for the Total Return fund, we have included a due diligence report for review by the Board. 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, including among others mpiStylus Pro©,, software designed by Markov Processes International. 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. Milliman disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. This Milliman work product was prepared solely for the internal business use of our clients. Milliman's work may not be provided to third parties without Milliman's prior written consent. Milliman does not intend to benefit any third party recipient of its work product, even if Milliman consents to the release of its work product to such third party. Past performance is no guarantee of future results. 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. Unless explicitly stated in your Service Agreement, Milliman services 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. Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request. Offices in Principal Cities Worldwide DOCUMENT PAGE 2

Quarterly Investment Monitor Summary Report for the Quarter Ending September 30, 2014 Prepared for City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 3

Quarterly Investment Monitor Contents Section A: Market Commentary Section B: Performance Summary Section C: Core Fund Review Section D: Glossary City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 4 2

Quarterly Investment Monitor Market Indices - 3rd Quarter 2014 3 1 3 5 Index Months Year Years Years BofAML US Treasury Bill 3 Mon 0.01 0.05 0.07 0.10 Barclays US Govt 1-3 Yr TR USD 0.03 0.52 0.51 1.07 Barclays US Govt/Credit Interm TR USD -0.03 2.20 2.01 3.42 Barclays US Government Long TR USD 2.63 11.60 2.08 6.99 Barclays US Long Credit TR USD 0.17 13.58 6.71 8.67 Barclays US Corporate High Yield TR USD -1.87 7.20 11.09 10.57 DJ Industrial Average TR USD 1.87 15.29 19.02 14.85 S&P 500 TR 1.13 19.73 22.99 15.70 NASDAQ 100 TR USD 5.53 27.52 25.36 20.01 NASDAQ Composite TR USD 2.24 20.61 24.57 17.51 Russell 1000 Value TR USD -0.19 18.89 23.93 15.26 Russell 1000 TR USD 0.65 19.01 23.23 15.90 Russell 1000 Growth TR USD 1.49 19.15 22.45 16.50 Russell 2000 Value TR USD -8.58 4.12 20.61 13.02 Russell 2000 TR USD -7.36 3.93 21.26 14.29 Russell 2000 Growth TR USD -6.13 3.79 21.91 15.51 FTSE NAREIT All REITs TR -2.63 13.44 17.02 15.75 MSCI EAFE NR USD -5.88 4.25 13.65 6.56 MSCI EAFE Small Cap NR USD -7.82 3.00 14.49 8.91 MSCI EM NR USD -3.50 4.30 7.19 4.42 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 5 3

Quarterly Investment Monitor Broad Market Commentary - 3rd Quarter 2014 Broad Markets - Quarter Broad Markets - Five Years Jul-14 - Sep-14 Sep-09 - Sep-14 3 240 2 220 1 200 0 Total Return, % Growth of $100 180 -1 160 -2 140 -3 120 -4 -5 100 -6 80 Jul-14 - Sep-14 Sep-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Sep-14 Total Total Barclays US Govt/Credit Interm TR USD S&P 500 TR Barclays US Govt/Credit Interm TR USD S&P 500 TR NASDAQ Composite TR USD MSCI EAFE NR USD NASDAQ Composite TR USD MSCI EAFE NR USD Market Commentary The U.S. stock market rose modestly on improving economic data, strong mergers-and-acquisitions activity and solid growth in corporate earnings. Developed international equity markets fell due to weak economic growth and significant deflationary pressures in Europe and Japan. Emerging markets declined on worries about slowing economic growth in China, the reduction of Federal Reserve stimulus, and the ongoing political crisis in Ukraine. The Fed continued to reduce its securities purchase from its $85 billion level in late 2013 to a target of zero by the end of October. Mutual fund investors increased their holdings in bonds and decreased their holdings in stocks. For the quarter, bond funds had net inflows of $17.9 billion, while stock funds had net outflows of $8.0 billion. Total money market mutual fund assets decreased by $34.4 billion to $2.591 trillion. The unemployment rate fell from 6.1% to 5.9%, as total employment increased by 671,000 jobs. The price of oil decreased from $105 per barrel to $91 during the quarter, a decline of 13.3%. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 6 4

Quarterly Investment Monitor US Fixed Income Market Commentary - 3rd Quarter 2014 US Fixed Income - Quarter US Fixed Income - Five Years Jul-14 - Sep-14 Sep-09 - Sep-14 3 170 160 2 150 Total Return, % Growth of $100 140 1 130 0 120 110 -1 100 90 -2 Sep-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Sep-14 Jul-14 - Sep-14 Total Total BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD US Bond Market The broad fixed income market rose 0.16% in the 3rd quarter, as the coupon return of 0.77% more than offset the negative impact from a 0.14% increase in interest rates. The short end of the yield curve remained unchanged as the Fed maintained its near-zero interest rate policy. The yield curve continued to flatten as the 30-year Treasury yield fell by 0.16%, while the 3-year rose by 0.17%. Long-term government bonds were the best performing sector this quarter, up 2.99%, as investors favored save-haven assets. Long-term corporate bonds were up 0.44%, as declining yields on the long end of the curve more than offset widening spreads. Global bonds were the worst performing sector this quarter, down 2.84%, as most foreign currencies fell sharply against the U.S. dollar. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 7 5

Quarterly Investment Monitor US Equity Market Commentary - 3rd Quarter 2014 US Equity - Quarter US Equity - Five Years Jul-14 - Sep-14 Sep-09 - Sep-14 2 240 1 220 0 -1 200 Total Return, % Growth of $100 -2 180 -3 160 -4 -5 140 -6 120 -7 100 -8 -9 80 Jul-14 - Sep-14 Sep-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Sep-14 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 The major domestic equity indicies were mixed for the quarter. The large-cap Russell 1000 Growth Index had the best return, up 1.49%. In terms of capitalization, large-cap stocks outperformed small-cap stocks. In comparing styles, growth outperformed value in the both large-cap and small-cap areas of the market. REITs fell 3.00%. as the likelihood of higher interest rates reduced demand for dividend-paying stocks. The worst performing REITs were industrial warehouses and the office sector. Energy was the worst performing sector, falling 8.52%, on lower oil and natural gas prices. Healthcare was the best performing sector, up 5.24%, on strong mergers-and-acquisitions activity and good earnings. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 8 6

Quarterly Investment Monitor International Market Commentary - 3rd Quarter 2014 International - Quarter Jul-14 - Sep-14 0 International - Five Years -1 -2 Total Return, % Sep-09 - Sep-14 -3 170 -4 -5 160 -6 -7 150 -8 140 Growth of $100 130 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD MSCI EM NR USD 120 Regional Performance - Quarter 110 Jul-14 - Sep-14 0 100 -1 -2 90 Total Return, % -3 80 -4 Sep-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Sep-14 -5 -6 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD -7 MSCI EM NR USD -8 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 strongly against the euro, yen and pound. For the quarter, the EAFE Index was down 5.88%, and Emerging Markets were down 3.49%. Local currency returns for the EAFE Index and Emerging Markets were 0.93% and 0.56%, respectively. Among the major international regions, Indian stocks had the highest return, up 2.34%, as investors anticipated more economic reforms and an improvement in GDP growth. Stocks in Russia had the lowest return, down 15.41% in the quarter and down 19.90% YTD, as the conflict with Ukraine continued and the West imposed greater economic sanctions. Large-Cap stocks, down 5.9%, outperformed small-cap stocks, down 7.8%. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 9 7

Quarterly Investment Monitor Data as of 09/30/2014 Performance Summary City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 10 8

Quarterly Investment Monitor Data as of 09/30/2014 Asset Allocation Balances As of Percent As of Balances As of Percent As of Notes 09/30/2014 09/30/2014 06/30/2014 06/30/2014 Wells Fargo Advantage Cash Inv MMkt I $365,071 2.02% $365,102 1.99% WFIXX Vanguard Short-Term Bond Index Signal $1,096,664 6.06% $1,463,027 7.98% VBSSX Vanguard Inflation-Protected Secs I $912,338 5.05% $365,738 2.00% VIPIX PIMCO Total Return Instl $546,765 3.02% $915,144 4.99% PTTRX Vanguard Total Bond Market Index Signal $550,307 3.04% $916,213 5.00% VBTSX PIMCO Long Duration Total Return Instl $641,776 3.55% $915,817 5.00% PLRIX Vanguard Long-Term Bond Index I $645,586 3.57% $919,720 5.02% VBLLX Ivy High Income I $1,275,976 7.06% $1,466,826 8.00% IVHIX American Funds Washington Mutual R6 $2,165,026 11.97% $2,007,669 10.95% RWMGX Vanguard Growth Index I $2,350,395 13.00% $1,833,789 10.00% VIGIX Vanguard Mid Cap Index Adm $1,262,527 6.98% $917,801 5.01% VIMAX Target Small Capitalization Value T $1,612,611 8.92% $1,473,046 8.04% TASVX Oppenheimer International Growth Y $895,207 4.95% $920,561 5.02% OIGYX American Funds New Perspective R6 $898,100 4.97% $914,681 4.99% RNPGX Vanguard Emerging Mkts Stock Idx I $1,584,936 8.77% $1,835,747 10.01% VEMIX Vanguard REIT Index I $1,279,094 7.07% $1,100,016 6.00% VGSNX Plan Total $18,082,379 $18,330,898 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 11 9

Quarterly Investment Monitor Data as of 09/30/2014 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 27 16 -0.07 -0.03 1.03 1.02 34 31 37 30 PIMCO Total Return Instl 19 41 2.55 1.65 1.93 1.52 39 45 57 72 PIMCO Long Duration Total Return Instl 27 11 0.68 0.13 1.00 0.96 45 55 67 67 Ivy High Income I 9 4 1.21 0.97 0.75 0.75 2 1 1 1 American Funds Washington Mutual R6 57 9 -1.86 1.41 0.82 0.84 4 2 5 4 Target Small Capitalization Value T 58 38 -3.47 -1.00 0.91 0.88 38 30 24 18 Oppenheimer International Growth Y 25 7 1.29 2.05 1.00 1.02 20 21 7 8 American Funds New Perspective R6 30 28 1.98 1.56 0.96 0.98 25 16 30 21 Definitions Return Rank - Fund's category percentile return rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Relative StdDev - Fund's standard deviation relative to its benchmark, a value less than 1 implies the fund's standard deviation is lower than its benchmark. Alpha Rank - Fund's category percentile Alpha rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Sharpe Rank - Fund's category percentile Sharpe Ratio rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 12 10

Quarterly Investment Monitor Data as of 09/30/2014 Investment Policy Review - Passive Management Excess Excess Tracking Tracking Fund Beta Beta Expense Return Return Error Error Name 3Y 5Y Ratio 3Y 5Y 3Y 5Y Vanguard Short-Term Bond Index Signal 0.27 0.64 2.12 0.60 1.84 0.76 0.10 Vanguard Total Bond Market Index Signal -0.15 -0.14 1.01 0.22 1.03 0.26 0.08 Vanguard Long-Term Bond Index I -0.06 0.00 1.02 0.85 1.03 0.88 0.07 Vanguard Growth Index I 0.66 1.12 0.99 0.54 1.00 0.79 0.08 Vanguard Mid Cap Index Adm 0.01 -0.14 1.02 0.55 1.02 0.88 0.09 Vanguard Emerging Mkts Stock Idx I 0.55 -0.17 0.98 3.08 1.03 3.10 0.12 Vanguard REIT Index I 1.29 1.33 1.00 0.22 1.00 0.19 0.08 Definitions Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Beta - Fund's Beta or sensitivity to movements compared to its benchmark, a value of 1 implies its moving in sync with its benchmark. Tracking Error - Fund's Tracking Error versus its benchmark, a value of 0 implies the Fund's ups and downs are the same size as its benchmark. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 13 11

Quarterly Investment Monitor Data as of 09/30/2014 Investment Option Return Summary Asset Fund 3 1 3 5 10 Mstar Expense YTD Ticker Class Name Months Year Years Years Years Rating Ratio Money Market-Taxable Wells Fargo Advantage Cash Inv MMkt I 0.00 0.01 0.01 0.04 0.07 1.72 WFIXX NA 0.20 BofA ML 91-day Tbill Auction Avg 0.01 0.03 0.05 0.07 0.10 1.59 N/A NA NA Short-term Bond Vanguard Short-Term Bond Index Signal (0.07) 0.91 1.04 1.19 2.09 3.27 VBSSX 3.00 0.10 Barclays US Govt/Credit 1-3 Yr TR USD 0.04 0.60 0.77 0.92 1.45 2.85 N/A NA NA Inflation-Protected Bond Vanguard Inflation-Protected Secs I (1.93) 3.87 1.53 1.27 4.45 4.52 VIPIX 4.00 0.07 Barclays US Treasury US TIPS TR USD (2.04) 3.67 1.59 1.34 4.48 4.63 N/A NA NA Intermediate-term Bond PIMCO Total Return Instl (0.36) 3.33 3.29 4.57 5.07 5.99 PTTRX 4.00 0.46 BC Intermediate Government/Credit (0.03) 2.22 2.20 2.01 3.42 4.05 N/A NA NA Intermediate-term Bond Vanguard Total Bond Market Index Signal 0.17 4.10 3.90 2.32 4.03 4.59 VBTSX 2.00 0.08 Barclays US Agg Float Adj TR USD 0.16 4.03 3.96 2.47 4.17 NA N/A NA NA Long-term Bond PIMCO Long Duration Total Return Instl 1.22 13.29 13.05 5.43 8.17 NA PLRIX 4.00 0.50 Long-term Bond Vanguard Long-Term Bond Index I 1.27 13.57 13.06 4.69 8.04 7.08 VBLLX 3.00 0.07 BC Long Government/Credit 1.04 12.97 12.87 4.75 8.04 7.01 N/A NA NA High Yield Bond Ivy High Income I (1.27) 3.40 6.88 12.30 11.55 8.72 IVHIX 5.00 0.69 BC High Yield Corporate Bond (1.87) 3.49 7.20 11.09 10.57 8.33 N/A NA NA Large Value American Funds Washington Mutual R6 1.02 7.78 18.43 21.60 16.15 7.80 RWMGX 4.00 0.30 S&P 500 Value 0.25 7.23 17.77 23.46 14.73 7.56 N/A NA NA Large Growth Vanguard Growth Index I 1.06 8.12 19.32 22.96 16.64 9.11 VIGIX 4.00 0.08 CRSP US Large Cap Growth TR USD 1.06 8.18 19.38 22.30 15.52 8.91 N/A NA NA Mid-Cap Blend Vanguard Mid Cap Index Adm (1.16) 6.68 15.88 23.31 17.03 10.28 VIMAX 5.00 0.09 CRSP US Mid Cap TR USD (1.15) 6.73 15.94 23.30 17.17 10.16 N/A NA NA Small Value Target Small Capitalization Value T (5.79) (1.27) 7.42 20.62 14.66 9.83 TASVX 4.00 0.68 S&P 600 Value (6.78) (2.62) 6.74 24.09 15.66 8.74 N/A NA NA Foreign Large Growth Oppenheimer International Growth Y (8.19) (6.00) (0.26) 14.72 9.62 9.36 OIGYX 4.00 0.90 MSCI EAFE Large Growth NR USD (5.00) (2.05) 3.11 13.43 7.56 6.83 N/A NA NA World Stock American Funds New Perspective R6 (1.80) 1.70 10.49 18.59 11.63 9.36 RNPGX 4.00 0.45 MSCI AC World Index ND USD (2.30) 3.73 11.32 16.61 10.07 7.28 N/A NA NA Diversified Emerging Mkts Vanguard Emerging Mkts Stock Idx I (2.43) 4.51 6.19 7.77 4.38 10.45 VEMIX 3.00 0.12 FTSE Emerging NR USD (2.34) 4.87 6.50 7.23 4.55 11.21 N/A NA NA Real Estate Vanguard REIT Index I (3.12) 13.99 13.21 16.57 15.94 8.64 VGSNX 4.00 0.08 MSCI US REIT NR USD (3.38) 13.04 11.90 15.28 14.62 NA N/A NA NA Total Plan OPEB-GROSS RETURN (1.27) 5.16 9.86 12.06 NA NA N/A NA NA Total Plan OPEB-NET RETURN (1.35) 4.92 9.53 11.69 NA NA N/A NA NA OPEB Plan Policy Index (1.38) 5.78 9.70 11.80 8.92 6.20 N/A NA NA City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 14 12

Quarterly Investment Monitor Data as of 09/30/2014 U.S. Fixed Income Style Map 36 Month moving average, Oct-09 - Sep-14 BC Government BC Credit Bond BC Municipal Bond BC High Yield Corporate Bond BC Mortgage Backed Securities Barcap US Fixed Income Vanguard Short-Term Bond Index Signal Vanguard Inflation-Protected Secs I PIMCO Total Return Instl Vanguard Total Bond Market Index Signal PIMCO Long Duration Total Return Instl Vanguard Long-Term Bond Index I Ivy High Income I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 15 13

Quarterly Investment Monitor Data as of 09/30/2014 U.S. Equity Style Map 36 Month moving average, Oct-09 - Sep-14 LgValue LgGrowth Small - Large MidValue MidGrowth SmValue SmGrowth Value - Growth S&P/BARRA Style Indices American Funds Washington Mutual R6 Vanguard Growth Index I Vanguard Mid Cap Index Adm Target Small Capitalization Value T Vanguard REIT Index I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 16 14

Quarterly Investment Monitor Data as of 09/30/2014 International Equity Style Map 36 Month moving average, Oct-09 - Sep-14 Europe Large Asia Pacific Large Small - Large Europe Small Asia Pacific Small European Emerging Asia Pacific Emerging Europe - Asia SBI Equity Indices Oppenheimer International Growth Y American Funds New Perspective R6 Vanguard Emerging Mkts Stock Idx I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 17 15

Quarterly Investment Monitor Data as of 09/30/2014 Core Fund Review City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 18 16

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Short-Term Bond Index Signal 3.40 Portfolio Information Investment Strategy Summary 12.60 % 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 an indexing investment Avg Mkt Cap $MM NA % Non-US Stocks approach designed to track the performance of the Barclays U.S. 1-5 Year Cat Med Mkt Cap $MM 50339.33 % Pref Government/Credit Float Adjusted Index. This index includes all medium and larger issues of Net Assets $MM 37141.82 % Conv U.S. government, investment-grade corporate, and investment-grade international Turnover Ratio 50.00 dollar-denominated bonds that have maturities between 1 and 5 years and are publicly % Other % Assets in Top 10 Holdings 12.96 issued. All of the fund's investments will be selected through the sampling process, and at % Non-US Bonds Total Number of Holdings 2061.00 least 80% of the fund's assets will be invested in bonds held in the index. Manager Name Joshua C. Barrickman Manager Tenure 1.60 _________________________________________________________________________ 83.95 Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 3.40 5 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 83.95 % United Kingdom NA % Non-US Stocks 0.00 4 % Eurozone NA % Pref 0.05 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 12.60 % Rank Cat 3 Yr 70 3 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 59 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA 2 % Rank Cat 10 Yr 33 % Asia - Emerging NA 1 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials NA Avg Eff Duration 2.69 2 250 % Communication Services NA Effective Maturity 2.80 0 % Consumer Cyclical NA Avg Credit Quality AA 225 % Consumer Defensive NA AAA 72.57 % Healthcare NA AA 4.81 200 -1 % Industrials NA A 12.54 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 10.08 % Technology NA BB 0.00 175 % Energy NA B 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA Below B 0.00 150 Median to 75th Percentile 75th to 95th Percentile % Utilities NA NR/NA 0.00 Ratio Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 1 125 Turnover 3 Year to 1 3 5 Top Ten Holdings 100 Performance Months Date Year Years Years US Treasury Note 1.625% 1.82% Vanguard Short-Term Bond Index Signal -0.07 0.91 1.04 1.19 2.09 US Treasury Note 1.25% 1.47% 75 Barclays US Govt/Credit 1-3 Yr TR USD 0.04 0.60 0.77 0.92 1.45 US Treasury Note 0.625% 1.46% Universe(5%) 0.14 2.52 3.49 4.31 4.91 US Treasury Note 2.125% 1.37% 50 Universe(25%) -0.01 1.39 1.86 2.61 3.06 US Treasury Note 1.5% 1.22% Universe(Median) -0.10 0.93 1.38 1.97 2.46 US Treasury Note 0.625% 1.20% 25 Universe(75%) -0.26 0.64 0.91 1.23 1.88 US Treasury Note 0.625% 1.15% Universe(95%) -0.56 0.22 0.37 0.42 0.92 US Treasury Note 0.625% 1.10% 0 0 US Treasury Note 1.5% 1.09% Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.375% 1.07% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 19 17

Quarterly Investment Monitor Data as of 09/30/2014 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 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -10 Up/Down Market Capture Ratio -15 Oct-11 - Sep-14 600 -20 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 500 Up Mkt Capture Ratio, % Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 400 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 300 Vanguard Short-Term Bond Index Signal 1.70 1.31 4.09 7.28 5.51 4.38 4.03 3.08 2.05 0.17 Barclays US Govt/Credit 1-3 Yr TR USD 1.30 1.77 4.25 6.83 4.97 3.82 2.80 1.59 1.26 0.64 200 100 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 3 3 3 0 -100 0 100 200 300 400 500 600 700 Down Mkt Capture Ratio, % 2 Excess Annualized StdDev, % Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Total Annualized StdDev, % 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD Sharpe Ratio 1 Alpha, % 0 Return vs. Risk 1 1 1 Oct-11 - Sep-14 7 -1 6 Total Annualized Return, % -2 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 Vanguard Short-Term Bond Index Signal -0.67 2.12 90.30 1.09 1.02 0.60 1 Barclays US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 1.85 0.45 0.00 Universe(5%) 2.04 3.88 83.62 2.76 2.38 2.04 0 0 1 2 3 4 5 6 Universe(25%) 0.60 2.40 75.59 1.95 1.62 1.28 Universe(Median) 0.18 1.91 66.82 1.61 1.08 0.77 Total Annualized StdDev, % Universe(75%) -0.26 1.45 53.55 1.25 0.87 0.54 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Universe(95%) -1.21 1.06 29.88 0.53 0.59 0.30 Cash Barclays US Govt/Credit 1-3 Yr TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 20 18

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Inflation-Protected Secs I 1.16 Portfolio Information Investment Strategy Summary % Cash Ticker VIPIX % US Stocks The investment seeks to provide inflation protection and income consistent with investment Morningstar Category Inflation-Protected Bond % Bonds in inflation-indexed securities. The fund invests at least 80% of its assets in inflation-indexed Avg Mkt Cap $MM NA % Non-US Stocks bonds issued by the U.S. government, its agencies and instrumentalities, and corporations. It Cat Med Mkt Cap $MM 8437.42 % Pref may invest in bonds of any maturity; however, its dollar-weighted average maturity is Net Assets $MM 25490.60 % Conv expected to be in the range of 7 to 20 years. At a minimum, all bonds purchased by the fund Turnover Ratio 44.00 will be rated investment-grade or, if unrated, will be considered by the advisor to be % Other % Assets in Top 10 Holdings 47.19 investment-grade. % Non-US Bonds Total Number of Holdings 38.00 Manager Name Gemma Wright-Casparius _________________________________________________________________________ Manager Tenure 3.12 98.84 Fund Incept Date 06/29/2000 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 1.16 5 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 98.84 % United Kingdom NA % Non-US Stocks 0.00 4 % Eurozone NA % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating 3 % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 0.00 % Rank Cat 3 Yr 29 % Middle East NA 5 Year Mstar Rating 2 % Japan NA % Rank Cat 5 Yr 10 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA 1 % Rank Cat 10 Yr 18 % Asia - Emerging NA 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -1 % Basic Materials NA Avg Eff Duration 7.92 1.0 400 % Communication Services NA Effective Maturity 8.60 % Consumer Cyclical NA Avg Credit Quality Government 0.9 -2 % Consumer Defensive NA AAA 100.00 350 % Healthcare NA AA 0.00 0.8 -3 % Industrials NA A 0.00 3 Months YTD 1 Year 3 Years 5 Years 300 % Real Estate NA BBB 0.00 % Technology NA BB 0.00 0.7 % Energy NA B 0.00 5th to 25th Percentile 25th to Median 250 Prospectus Exp Ratio % Financial Services NA Below B 0.00 0.6 Median to 75th Percentile 75th to 95th Percentile % Utilities NA NR/NA 0.00 Ratio Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 0.5 200 Turnover 3 Year to 1 3 5 Top Ten Holdings 0.4 Performance 150 Months Date Year Years Years US Treasury TIP 5.75% Vanguard Inflation-Protected Secs I -1.93 3.87 1.53 1.27 4.45 US Treasury TIP 5.29% 0.3 Barclays US Treasury US TIPS TR USD -2.04 3.67 1.59 1.34 4.48 US Treasury TIP 4.82% 100 Universe(5%) -1.47 3.94 1.91 2.19 4.77 US TREASURY TIP 4.70% 0.2 Universe(25%) -1.98 3.52 1.43 1.30 4.27 US Treasury TIP 4.65% Universe(Median) -2.19 3.12 1.02 1.03 3.99 US Treasury TIP 4.61% 50 0.1 Universe(75%) -2.35 1.95 0.74 0.76 3.62 US Treasury TIP 0.125% 4.58% Universe(95%) -2.59 0.30 -0.35 0.13 2.41 US TREASURY TIP 4.49% 0.0 0 US Treasury TIP 4.24% Prospectus Exp Ratio Turnover Ratio US Treasury TIP 1.125% 4.05% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 21 19

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Inflation-Protected Secs I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 100 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -5 Up/Down Market Capture Ratio -10 Oct-11 - Sep-14 200 -15 180 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 160 Up Mkt Capture Ratio, % Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 140 120 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 100 Vanguard Inflation-Protected Secs I 8.25 2.78 0.46 11.82 -2.81 11.03 6.33 13.39 6.87 -8.83 80 Barclays US Treasury US TIPS TR USD 8.46 2.84 0.41 11.64 -2.35 11.41 6.31 13.56 6.98 -8.61 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 2 6 5 0 0 20 40 60 80 100 120 140 160 180 200 Down Mkt Capture Ratio, % 0.5 5 4 Excess Annualized StdDev, % 1 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Total Annualized StdDev, % 0.4 4 Barclays US Treasury US TIPS TR USD Sharpe Ratio 3 Alpha, % 0 0.3 3 2 Return vs. Risk 0.2 2 Oct-11 - Sep-14 -1 3 1 0.1 1 2 Total Annualized Return, % -2 0.0 0 0 1 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 0 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -1 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Inflation-Protected Secs I -0.10 1.03 99.24 0.25 5.44 0.50 -2 Barclays US Treasury US TIPS TR USD 0.00 1.00 100.00 0.27 5.27 0.00 Universe(5%) 1.06 1.12 99.76 0.56 5.99 4.18 -3 0 1 2 3 4 5 6 7 8 9 10 11 Universe(25%) 0.11 1.00 99.36 0.28 5.36 1.77 Universe(Median) -0.23 0.96 98.45 0.22 5.07 0.71 Total Annualized StdDev, % Universe(75%) -0.45 0.90 94.64 0.17 4.80 0.48 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Universe(95%) -1.10 0.31 58.13 0.04 2.07 0.28 Cash Barclays US Treasury US TIPS TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 22 20

Quarterly Investment Monitor Data as of 09/30/2014 PIMCO Total Return Instl Portfolio Information Investment Strategy Summary % Cash 50.23 Ticker PTTRX % US Stocks The investment seeks maximum total return, consistent with preservation of capital and Morningstar Category Intermediate-term Bond 31.18 % Bonds prudent investment management. The fund normally invests at least 65% of its total assets Avg Mkt Cap $MM NA % Non-US Stocks in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be Cat Med Mkt Cap $MM NA % Pref represented by forwards or derivatives such as options, futures contracts, or swap Net Assets $MM 201585.25 % Conv agreements. It invests primarily in investment-grade debt securities, but may invest up to Turnover Ratio 227.00 10% of its total assets in high yield securities ("junk bonds") rated B or higher by Moody's, or % Other % Assets in Top 10 Holdings 76.79 equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable % Non-US Bonds Total Number of Holdings 17740.00 quality. Manager Name Mark R. Kiesel 4.05 Manager Tenure 0.01 _________________________________________________________________________ Fund Incept Date 05/11/1987 14.40 Prospectus Exp Ratio 0.46 Phone Number 888-877-4626 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 50.23 8 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 14.40 7 % United Kingdom NA % Non-US Stocks 0.11 % Eurozone NA % Pref 0.03 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating 6 % Europe - Emerging NA % Other 4.05 3 Year Mstar Rating % Africa NA % Non-US Bonds 31.18 % Rank Cat 3 Yr 20 5 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 39 4 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 5 % 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 4.97 2 700 1 % Communication Services NA Effective Maturity 5.29 % Consumer Cyclical NA Avg Credit Quality NA 0 % Consumer Defensive NA AAA NA 600 % Healthcare NA AA NA % Industrials NA A NA -1 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB NA 500 % Technology NA BB NA % Energy NA B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA Below B NA Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities NA NR/NA NA 400 PIMCO Total Return Instl BC Intermediate Government/Credit 1 Turnover 300 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years NYSE/Liffe 10 Year US Treasury Note Future Sept14 19.44% PIMCO Total Return Instl -0.36 3.33 3.29 4.57 5.07 Irs Usd 3.000 09/21/16-1y (Grn) Cme 19.23% 200 BC Intermediate Government/Credit -0.03 2.22 2.20 2.01 3.42 5 Year US Treasury Note Future Sept14 12.42% Universe(5%) 0.41 5.50 6.72 6.19 7.04 Irs Usd 1.500 12/16/15-1y (Red) Cme 7.14% Universe(25%) 0.18 4.59 5.12 4.31 5.55 Irs Usd 1.750 06/15/16-1y (Grn) Cme 6.66% Universe(Median) -0.02 4.12 4.30 3.39 4.79 100 NYSE/Liffe 30 Year US Treasury Bond Future Sept14 2.81% Universe(75%) -0.22 3.33 3.46 2.56 3.99 Irs Usd 2.750 06/19/13-30y Cme 2.62% Universe(95%) -0.64 1.78 1.75 1.25 2.72 US Treasury TIP 2.34% 0 0 US TREASURY TIP 2.16% Prospectus Exp Ratio Turnover Ratio Ois Usd Fedl01/1.0 10/15/15 Cme 1.97% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 23 21

Quarterly Investment Monitor Data as of 09/30/2014 PIMCO Total Return Instl Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 30 0 25 25 Total Return Rank, % 20 50 15 Total Return, % 10 75 5 100 0 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -5 Up/Down Market Capture Ratio -10 Oct-11 - Sep-14 300 -15 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 250 Up Mkt Capture Ratio, % PIMCO Total Return Instl BC Intermediate Government/Credit 200 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 150 PIMCO Total Return Instl 5.14 2.89 3.99 9.07 4.82 13.83 8.83 4.16 10.36 -1.92 BC Intermediate Government/Credit 3.04 1.58 4.08 7.39 5.08 5.24 5.89 5.80 3.89 -0.86 100 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 2 4 3 0 -50 0 50 100 150 200 250 Down Mkt Capture Ratio, % 3 Excess Annualized StdDev, % 3 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Total Annualized StdDev, % 2 2 BC Intermediate Government/Credit Sharpe Ratio Alpha, % 1 1 2 Return vs. Risk 0 1 Oct-11 - Sep-14 1 12 -1 10 Total Annualized Return, % -2 0 0 0 8 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 6 PIMCO Total Return Instl BC Intermediate Government/Credit 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 2 PIMCO Total Return Instl 0.89 1.84 91.18 1.18 3.78 2.00 0 BC Intermediate Government/Credit 0.00 1.00 100.00 0.99 1.96 0.00 Universe(5%) 3.18 1.74 95.14 1.90 3.87 2.38 -2 0 1 2 3 4 5 6 Universe(25%) 1.49 1.49 93.24 1.41 3.15 1.56 Universe(Median) 0.64 1.37 89.89 1.14 2.84 1.18 Total Annualized StdDev, % Universe(75%) -0.16 1.21 83.52 0.89 2.62 0.99 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Universe(95%) -1.05 0.92 56.94 0.54 1.97 0.57 Cash BC Intermediate Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 24 22

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Total Bond Market Index Signal 4.54 Portfolio Information Investment Strategy Summary 10.23 % Cash Ticker VBTSX % US Stocks The investment seeks the performance of a broad, market-weighted bond index. The fund Morningstar Category Intermediate-term Bond % Bonds employs an indexing investment approach designed to track the performance of the Barclays Avg Mkt Cap $MM NA % Non-US Stocks U.S. Aggregate Float Adjusted Index. This index represents a wide spectrum of public, Cat Med Mkt Cap $MM NA % Pref investment-grade, taxable, fixed income securities in the United States-including Net Assets $MM 124223.64 % Conv government, corporate, and international dollar-denominated bonds, as well as Turnover Ratio 73.00 mortgage-backed and asset-backed securities-all with maturities of more than 1 year. All of % Other % Assets in Top 10 Holdings 5.19 the fund's investments will be selected through the sampling process, and at least 80% of % Non-US Bonds Total Number of Holdings 16099.00 the fund's assets will be invested in bonds held in the index. Manager Name Joshua C. Barrickman Manager Tenure 1.60 _________________________________________________________________________ 85.20 Fund Incept Date 12/11/1986 Prospectus Exp Ratio 0.08 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 4.54 5 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 85.20 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.03 Portfolio Ratings 4 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 10.23 % Rank Cat 3 Yr 78 % Middle East NA 5 Year Mstar Rating 3 % Japan NA % Rank Cat 5 Yr 74 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 46 % Asia - Emerging NA 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials NA Avg Eff Duration 5.60 0.7 350 1 % Communication Services NA Effective Maturity 7.70 % Consumer Cyclical NA Avg Credit Quality AA % Consumer Defensive NA AAA 69.87 0.6 300 % Healthcare NA AA 4.20 % Industrials NA A 12.55 0 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 13.38 0.5 250 % Technology NA BB 0.00 % Energy NA B 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio % Utilities NA NR/NA 0.00 0.4 200 Vanguard Total Bond Market 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 0.375% 0.63% Vanguard Total Bond Market Index Signal 0.17 4.10 3.90 2.32 4.03 US Treasury Note 0.25% 0.57% 0.2 100 Barclays US Agg Float Adj TR USD 0.16 4.03 3.96 2.47 4.17 GNMA 0.54% Universe(5%) 0.40 4.92 4.41 2.62 4.42 US Treasury Note 3.625% 0.54% Universe(25%) 0.18 4.06 3.83 2.25 3.91 US Treasury Note 1.5% 0.52% Universe(Median) 0.13 4.02 3.77 2.20 3.84 0.1 50 US Treasury Note 0.375% 0.51% Universe(75%) 0.07 3.96 3.63 2.07 3.71 US Treasury Note 0.25% 0.50% Universe(95%) 0.03 3.84 3.50 1.95 3.59 US Treasury Note 1.75% 0.47% 0.0 0 US Treasury Bond 6.25% 0.45% Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.625% 0.44% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 25 23

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Total Bond Market Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 8 0 6 25 Total Return Rank, % 4 50 Total Return, % 2 75 0 100 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -2 Up/Down Market Capture Ratio -4 Oct-11 - Sep-14 160 -6 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 140 Up Mkt Capture Ratio, % Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 120 100 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 80 Vanguard Total Bond Market Index Signal 4.24 2.40 4.29 7.02 5.15 6.04 6.54 7.68 4.15 -2.15 Barclays US Agg Float Adj TR USD NA NA NA NA NA NA 6.58 7.92 4.32 -1.97 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 0.0 1.0 4 1.0 0 0 20 40 60 80 100 120 140 160 180 0.9 0.9 Down Mkt Capture Ratio, % -0.1 0.8 0.8 Excess Annualized StdDev, % 3 Morningstar IntermTerm Bond Index Universe Vanguard Total Bond Market Index Signal Total Annualized StdDev, % 0.7 0.7 -0.2 Barclays US Agg Float Adj TR USD Sharpe Ratio 0.6 0.6 Alpha, % -0.3 0.5 2 0.5 0.4 0.4 Return vs. Risk -0.4 0.3 0.3 Oct-11 - Sep-14 1 4 0.2 0.2 -0.5 0.1 0.1 Total Annualized Return, % -0.6 0.0 0 0.0 3 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 2 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 1 Vanguard Total Bond Market Index Signal -0.17 1.01 99.36 0.83 2.71 0.22 Barclays US Agg Float Adj TR USD 0.00 1.00 100.00 0.90 2.67 0.00 Universe(5%) -0.13 1.15 99.56 0.84 3.11 0.92 0 0 1 2 3 4 5 Universe(25%) -0.26 1.01 99.47 0.80 2.71 0.30 Universe(Median) -0.31 1.00 99.33 0.78 2.69 0.22 Total Annualized StdDev, % Universe(75%) -0.41 1.00 98.81 0.75 2.67 0.19 Morningstar IntermTerm Bond Index Universe Vanguard Total Bond Market Index Signal Universe(95%) -0.53 0.98 95.46 0.71 2.64 0.18 Cash Barclays US Agg Float Adj TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 26 24

Quarterly Investment Monitor Data as of 09/30/2014 PIMCO Long Duration Total Return Instl 4.79 Portfolio Information Investment Strategy Summary % Cash Ticker PLRIX % US Stocks The investment seeks maximum total return, consistent with prudent investment Morningstar Category Long-term Bond 31.51 % Bonds management. The fund invests at least 65% of its total assets in a diversified portfolio of Avg Mkt Cap $MM NA % Non-US Stocks Fixed Income Instruments of varying maturities, which may be represented by forwards or Cat Med Mkt Cap $MM NA % Pref derivatives such as options, futures contracts or swap agreements. It invests primarily in Net Assets $MM 5516.37 % Conv investment grade debt securities, but may invest up to 10% of its total assets in high yield Turnover Ratio 70.00 securities ("junk bonds") that are rated B or higher by Moody's, or equivalently rated by S&P % Other % Assets in Top 10 Holdings 46.20 or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. % Non-US Bonds Total Number of Holdings 756.00 62.68 Manager Name Stephen A. Rodosky _________________________________________________________________________ Manager Tenure 7.17 Fund Incept Date 08/31/2006 Prospectus Exp Ratio 0.50 Phone Number 888-877-4626 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 4.79 14 % Canada 0.00 % US Stocks 0.06 % Latin America 0.00 % Bonds 62.68 % United Kingdom 0.00 % Non-US Stocks 0.00 12 % Eurozone 0.00 % Pref 0.47 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating 10 % Europe - Emerging 0.00 % Other 0.48 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 31.51 % Rank Cat 3 Yr 10 % Middle East 0.00 5 Year Mstar Rating 8 % Japan 0.00 % Rank Cat 5 Yr 8 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.00 6 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 % Basic Materials 0.00 Avg Eff Duration 13.16 2 160 % Communication Services 0.00 Effective Maturity 20.61 % Consumer Cyclical 0.00 Avg Credit Quality NA 0 % Consumer Defensive 0.00 AAA NA 140 % Healthcare 0.00 AA NA % Industrials 0.00 A NA -2 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 0.00 BB NA % Energy 0.00 B NA 5th to 25th Percentile 25th to Median 100 Prospectus Exp Ratio % Financial Services 4.89 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 95.11 NR/NA NA Ratio PIMCO Long Duration Total Return Instl BC Long Government/Credit 1 80 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance 60 Months Date Year Years Years Fin Fut Euro$ Cme 06/15/15 19.44% PIMCO Long Duration Total Return Instl 1.22 13.29 13.05 5.43 8.17 Cdx Ig22 5y Bp Ice 9.02% BC Long Government/Credit 1.04 12.97 12.87 4.75 8.04 US Treasury Bond 2.75% 3.55% 40 Universe(5%) 2.12 13.37 12.98 6.35 8.42 US Treasury Bond 3.125% 2.73% Universe(25%) 1.36 11.52 11.49 5.52 8.13 Resolution Fdg Fed Bk Prin Stp 2.20% Universe(Median) 0.68 8.82 9.11 4.87 7.68 US Treasury Bond 3.125% 2.11% 20 Universe(75%) -0.13 6.20 6.79 3.65 5.25 U S Treas Bd Stripped Prin Pmt 2.07% Universe(95%) -0.40 2.70 1.72 1.06 3.36 Resolution Fdg Fed Bk Prin Stp 1.71% 0 0 US Treasury Bond 4.375% 1.71% Prospectus Exp Ratio Turnover Ratio AID 5.5% 1.67% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 27 25

Quarterly Investment Monitor Data as of 09/30/2014 PIMCO Long Duration Total Return Instl Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 25 0 20 25 Total Return Rank, % 15 10 50 Total Return, % 5 0 75 -5 -10 100 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -15 -20 Up/Down Market Capture Ratio -25 Oct-11 - Sep-14 120 -30 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 100 Up Mkt Capture Ratio, % PIMCO Long Duration Total Return Instl BC Long Government/Credit 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 PIMCO Long Duration Total Return Instl NA NA NA 7.83 12.38 5.62 11.64 18.57 10.28 -8.56 BC Long Government/Credit 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 -8.83 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 2 9 7 0 -20 0 20 40 60 80 100 120 8 Down Mkt Capture Ratio, % 4 6 7 Excess Annualized StdDev, % Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Total Annualized StdDev, % 3 5 6 BC Long Government/Credit Sharpe Ratio 2 4 Alpha, % 5 1 4 1 3 Return vs. Risk 3 0 2 Oct-11 - Sep-14 2 7 -1 1 1 6 Total Annualized Return, % -2 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 PIMCO Long Duration Total Return Instl BC Long Government/Credit 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 PIMCO Long Duration Total Return Instl 0.75 0.98 96.24 0.67 8.26 1.61 1 BC Long Government/Credit 0.00 1.00 100.00 0.59 8.27 0.00 Universe(5%) 4.30 1.00 98.03 1.44 8.34 6.47 0 0 1 2 3 4 5 6 7 8 9 Universe(25%) 2.14 0.89 93.32 0.92 7.61 5.01 Universe(Median) 0.73 0.51 85.78 0.70 4.78 4.56 Total Annualized StdDev, % Universe(75%) 0.24 0.46 73.95 0.62 4.42 2.28 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Universe(95%) -1.11 0.28 52.90 0.34 3.37 1.14 Cash BC Long Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 28 26

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Long-Term Bond Index I Portfolio Information Investment Strategy Summary 14.28 % Cash Ticker VBLLX % US Stocks The investment seeks to track the performance of a market-weighted bond index with a Morningstar Category Long-term Bond % Bonds long-term dollar-weighted average maturity. The fund employs an indexing investment Avg Mkt Cap $MM NA % Non-US Stocks approach designed to track the performance of the Barclays U.S. Long Government/Credit Cat Med Mkt Cap $MM NA % Pref Float Adjusted Index. This index includes all medium and larger issues of U.S. government, Net Assets $MM 7262.92 % Conv investment-grade corporate, and investment-grade international dollar-denominated bonds Turnover Ratio 50.00 that have maturities of greater than 10 years and are publicly issued. All of the fund's % Other % Assets in Top 10 Holdings 16.05 investments will be selected through the sampling process, and at least 80% of the fund's % Non-US Bonds Total Number of Holdings 1762.00 assets will be invested in bonds held in the index. Manager Name Joshua C. Barrickman 85.01 Manager Tenure 1.60 _________________________________________________________________________ Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States NA % Cash 0.68 14 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 85.01 % United Kingdom NA % Non-US Stocks 0.00 12 % Eurozone NA % Pref 0.03 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating 10 % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 14.28 % Rank Cat 3 Yr 30 % Middle East NA 5 Year Mstar Rating 8 % Japan NA % Rank Cat 5 Yr 39 % Australasia NA 10 Year Mstar Rating NA % Asia - Developed NA 6 % Rank Cat 10 Yr 1 % Asia - Emerging NA 4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 % Basic Materials NA Avg Eff Duration 14.44 2 160 % Communication Services NA Effective Maturity 24.20 % Consumer Cyclical NA Avg Credit Quality A 0 % Consumer Defensive NA AAA 36.50 140 % Healthcare NA AA 7.03 % Industrials NA A 25.92 -2 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA BBB 30.55 % Technology NA BB 0.00 % Energy NA B 0.00 5th to 25th Percentile 25th to Median 100 Prospectus Exp Ratio % Financial Services NA Below B 0.00 Median to 75th Percentile 75th to 95th Percentile % Utilities NA NR/NA 0.00 Ratio Vanguard Long-Term Bond Index I BC Long Government/Credit 1 80 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance 60 Months Date Year Years Years US Treasury Bond 3.625% 2.34% Vanguard Long-Term Bond Index I 1.27 13.57 13.06 4.69 8.04 US Treasury Bond 3.125% 1.85% BC Long Government/Credit 1.04 12.97 12.87 4.75 8.04 US Treasury Bond 3.75% 1.76% 40 Universe(5%) 2.12 13.37 12.98 6.35 8.42 US Treasury Bond 2.75% 1.74% Universe(25%) 1.36 11.52 11.49 5.52 8.13 US Treasury Bond 3.375% 1.70% Universe(Median) 0.68 8.82 9.11 4.87 7.68 US Treasury Bond 2.75% 1.68% 20 Universe(75%) -0.13 6.20 6.79 3.65 5.25 US Treasury Bond 3.625% 1.35% Universe(95%) -0.40 2.70 1.72 1.06 3.36 US Treasury Bond 4.25% 1.34% 0 0 US Treasury Bond 4.75% 1.24% Prospectus Exp Ratio Turnover Ratio US Treasury Bond 4.375% 1.06% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 29 27

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Long-Term Bond Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 25 0 20 25 Total Return Rank, % 15 10 50 Total Return, % 5 0 75 -5 -10 100 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -15 -20 Up/Down Market Capture Ratio -25 Oct-11 - Sep-14 120 -30 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 100 Up Mkt Capture Ratio, % Vanguard Long-Term Bond Index I BC Long Government/Credit 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 Vanguard Long-Term Bond Index I 8.40 5.32 2.75 6.71 8.77 1.91 10.43 22.23 8.63 -9.01 BC Long Government/Credit 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 -8.83 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 2 9 7 0 -20 0 20 40 60 80 100 120 8 Down Mkt Capture Ratio, % 4 6 7 Excess Annualized StdDev, % Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Total Annualized StdDev, % 3 5 6 BC Long Government/Credit Sharpe Ratio 2 4 Alpha, % 5 1 4 1 3 Return vs. Risk 3 0 2 Oct-11 - Sep-14 2 7 -1 1 1 6 Total Annualized Return, % -2 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 Vanguard Long-Term Bond Index I BC Long Government/Credit 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 Vanguard Long-Term Bond Index I -0.12 1.02 99.01 0.58 8.45 0.85 1 BC Long Government/Credit 0.00 1.00 100.00 0.59 8.27 0.00 Universe(5%) 4.30 1.00 98.03 1.44 8.34 6.47 0 0 1 2 3 4 5 6 7 8 9 Universe(25%) 2.14 0.89 93.32 0.92 7.61 5.01 Universe(Median) 0.73 0.51 85.78 0.70 4.78 4.56 Total Annualized StdDev, % Universe(75%) 0.24 0.46 73.95 0.62 4.42 2.28 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Universe(95%) -1.11 0.28 52.90 0.34 3.37 1.14 Cash BC Long Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 30 28

Quarterly Investment Monitor Data as of 09/30/2014 Ivy High Income I 3.60 Portfolio Information Investment Strategy Summary % Cash Ticker IVHIX % US Stocks The investment seeks to provide total return through a combination of high current income Morningstar Category High Yield Bond % Bonds and capital appreciation. The fund invests primarily in a diversified portfolio of high-yield, Avg Mkt Cap $MM 23763.36 % Non-US Stocks high-risk, fixed income securities, including secured and unsecured loan assignments, loan Cat Med Mkt Cap $MM 12586.60 % Pref participations and other loan instruments (loans), of U.S. and foreign issuers, the risks of 52.68 Net Assets $MM 10636.43 40.64 % Conv which are, in the judgment of the adviser consistent with the fund's objective. It invests Turnover Ratio 75.00 primarily in lower quality debt securities, which include debt securities rated BBB+ or lower. % Other % Assets in Top 10 Holdings 11.77 % Non-US Bonds Total Number of Holdings 422.00 _________________________________________________________________________ Manager Name Chad A. Gunther Manager Tenure 0.23 Fund Incept Date 07/31/1997 2.13 Prospectus Exp Ratio 0.69 Phone Number 800-777-6472 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 63.43 % Cash 3.60 14 % Canada 0.00 % US Stocks 0.57 % Latin America 0.00 % Bonds 52.68 12 % United Kingdom 36.57 % Non-US Stocks 0.33 % Eurozone 0.00 % Pref 0.02 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.04 Mstar Rating 10 % Europe - Emerging 0.00 % Other 2.13 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 40.64 % Rank Cat 3 Yr 8 8 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 3 6 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 2 % 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 3.90 2 160 0 % Communication Services 56.75 Effective Maturity 4.65 % Consumer Cyclical 43.25 Avg Credit Quality B -2 % Consumer Defensive 0.00 AAA 0.00 140 % Healthcare 0.00 AA 0.00 % Industrials 0.00 A 1.02 -4 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB 1.76 % Technology 0.00 BB 20.12 % Energy 0.00 B 41.38 5th to 25th Percentile 25th to Median 100 Prospectus Exp Ratio % Financial Services 0.00 Below B 35.28 Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 NR/NA 0.44 Ratio Ivy High Income I BC High Yield Corporate Bond 1 80 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance 60 Months Date Year Years Years Magic 2 Lien (Misys Plc) 2.02% Ivy High Income I -1.27 3.40 6.88 12.30 11.55 Laureate Educ 144A 9.25% 1.71% BC High Yield Corporate Bond -1.87 3.49 7.20 11.09 10.57 Formula 1 (Proj Green Ii) 1.41% 40 Universe(5%) -0.99 4.69 8.65 12.82 11.46 Hd Sply 11.5% 1.12% Universe(25%) -1.69 3.47 7.14 11.00 10.20 Tmx Fin Llc/Titlemax Fin 144A 8.5% 1.02% Universe(Median) -2.02 2.93 6.33 10.28 9.57 Eagle Midco 144A 9% 0.98% 20 Universe(75%) -2.27 2.37 5.69 9.33 8.95 Onex Usi Acquisition 144A 7.75% 0.94% Universe(95%) -2.96 1.42 3.87 6.69 7.43 Jo-Ann Stores 144A 9.75% 0.88% 0 0 Bakercorp Intl 144A 8.25% 0.84% Prospectus Exp Ratio Turnover Ratio Pinnacle Operating Corporation 144A 9% 0.84% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 31 29

Quarterly Investment Monitor Data as of 09/30/2014 Ivy High Income I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 25 Total Return Rank, % 60 50 40 Total Return, % 75 20 100 0 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -20 Up/Down Market Capture Ratio Oct-11 - Sep-14 140 -40 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 120 Up Mkt Capture Ratio, % Ivy High Income I BC High Yield Corporate Bond 100 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 80 Ivy High Income I 7.58 0.59 9.69 4.05 -19.73 46.56 15.62 6.44 17.16 10.46 60 BC High Yield Corporate Bond 11.13 2.74 11.85 1.87 -26.16 58.21 15.12 4.98 15.81 7.44 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 3 8 5 0 -20 0 20 40 60 80 100 120 140 160 180 7 Down Mkt Capture Ratio, % 3 4 Excess Annualized StdDev, % 6 Morningstar High Yield Universe Ivy High Income I Total Annualized StdDev, % 2 2 BC High Yield Corporate Bond 5 Sharpe Ratio 3 Alpha, % 1 4 2 Return vs. Risk 3 0 1 Oct-11 - Sep-14 2 16 1 -1 1 14 Total Annualized Return, % -2 0 0 0 12 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 10 Ivy High Income I BC High Yield Corporate Bond 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 Ivy High Income I 3.85 0.73 95.29 2.76 4.23 1.76 2 BC High Yield Corporate Bond 0.00 1.00 100.00 1.89 5.63 0.00 Universe(5%) 2.92 1.17 99.23 2.47 7.26 4.00 0 0 2 4 6 8 10 12 14 Universe(25%) 0.58 1.05 98.59 1.92 6.04 1.92 Universe(Median) -0.48 0.96 97.17 1.77 5.53 1.13 Total Annualized StdDev, % Universe(75%) -1.14 0.87 91.57 1.64 5.06 0.75 Morningstar High Yield Universe Ivy High Income I Universe(95%) -1.86 0.55 74.59 1.27 3.36 0.58 Cash BC High Yield Corporate Bond City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 32 30

Quarterly Investment Monitor Data as of 09/30/2014 American Funds Washington Mutual R6 2.45 Portfolio Information Investment Strategy Summary 8.38 % Cash Ticker RWMGX % US Stocks The investment seeks to produce income and to provide an opportunity for growth of Morningstar Category Large Value % Bonds principal consistent with sound common stock investing. The fund invests primarily in Avg Mkt Cap $MM 94038.89 % Non-US Stocks common stocks of established companies that are listed on, or meet the financial listing Cat Med Mkt Cap $MM 87265.57 % Pref requirements of, the New York Stock Exchange and have a strong record of earnings and Net Assets $MM 75577.95 % Conv dividends. Its advisor strives to maintain a fully invested, diversified portfolio, consisting Turnover Ratio 19.00 primarily of high-quality common stocks. % Other % Assets in Top 10 Holdings 34.36 % Non-US Bonds Total Number of Holdings 153.00 _________________________________________________________________________ Manager Name Alan N. Berro Manager Tenure 17.26 89.16 Fund Incept Date 07/31/1952 Prospectus Exp Ratio 0.30 Phone Number 800-421-4225 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 91.41 % Cash 2.45 30 % Canada 2.36 % US Stocks 89.16 % Latin America 0.00 % Bonds 0.00 % United Kingdom 3.87 % Non-US Stocks 8.38 25 % Eurozone 0.59 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 1.62 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.01 3 Year Mstar Rating 20 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 52 % Middle East 0.00 5 Year Mstar Rating % Japan 0.16 % Rank Cat 5 Yr 5 15 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 33 % Asia - Emerging 0.00 10 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 4.09 Avg Eff Duration NA 2 180 % Communication Services 5.66 Effective Maturity NA % Consumer Cyclical 11.02 Avg Credit Quality NA 0 160 % Consumer Defensive 9.56 AAA NA % Healthcare 10.66 AA NA % Industrials 19.17 A NA 140 -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 10.07 BB NA 120 % Energy 12.23 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 14.17 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 3.37 NR/NA NA Ratio 100 American Funds Washington Mutual R6 S&P 500 Value 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Microsoft Corp 5.01% 60 American Funds Washington Mutual R6 1.02 7.78 18.43 21.60 16.15 Boeing Co 4.23% S&P 500 Value 0.25 7.23 17.77 23.46 14.73 Home Depot Inc 3.87% Universe(5%) 1.49 8.71 20.77 27.16 17.18 40 Merck & Co Inc 3.73% Universe(25%) 0.12 7.50 18.27 23.75 15.00 Wells Fargo & Co 3.60% Universe(Median) -0.35 6.42 16.63 22.15 14.00 Royal Dutch Shell PLC ADR Class B 3.51% 20 Universe(75%) -1.09 4.87 14.42 20.04 12.92 American Express Co 2.82% Universe(95%) -2.98 2.87 10.91 16.07 10.58 Chevron Corp 2.55% 0 0 Coca-Cola Co 2.55% Prospectus Exp Ratio Turnover Ratio Verizon Communications Inc 2.50% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 33 31

Quarterly Investment Monitor Data as of 09/30/2014 American Funds Washington Mutual R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -30 Up/Down Market Capture Ratio -40 Oct-11 - Sep-14 180 -50 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 160 Up Mkt Capture Ratio, % 140 American Funds Washington Mutual R6 S&P 500 Value 120 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 100 American Funds Washington Mutual R6 9.92 3.55 18.04 3.97 -33.10 19.24 13.69 7.35 12.85 32.34 80 S&P 500 Value 15.03 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 31.99 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 3 14 6 0 0 20 40 60 80 100 120 140 160 180 200 2 12 Down Mkt Capture Ratio, % 5 Excess Annualized StdDev, % 1 Morningstar Large Value Universe American Funds Washington Mutual R6 Total Annualized StdDev, % 10 2 4 S&P 500 Value 0 Sharpe Ratio 8 Alpha, % -1 3 6 Return vs. Risk -2 1 2 4 Oct-11 - Sep-14 -3 40 1 -4 2 35 Total Annualized Return, % -5 0 0 0 30 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 25 American Funds Washington Mutual R6 S&P 500 Value 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 American Funds Washington Mutual R6 2.92 0.79 91.13 2.18 9.19 3.63 5 S&P 500 Value 0.00 1.00 100.00 1.95 11.15 0.00 Universe(5%) 2.63 1.14 98.22 2.11 13.39 5.75 0 0 2 4 6 8 10 12 14 16 18 20 22 Universe(25%) 0.79 1.05 96.42 1.98 11.98 3.79 Universe(Median) -0.32 0.98 94.61 1.87 11.23 2.81 Total Annualized StdDev, % Universe(75%) -1.93 0.90 90.63 1.71 10.26 2.19 Morningstar Large Value Universe American Funds Washington Mutual R6 Universe(95%) -4.28 0.74 82.67 1.47 8.94 1.63 Cash S&P 500 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 34 32

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Growth Index I 2.09 Portfolio Information Investment Strategy Summary % Cash Ticker VIGIX % US Stocks The investment seeks to track the performance of a benchmark index that measures the Morningstar Category Large Growth % Bonds investment return of large-capitalization growth stocks. The fund employs an indexing Avg Mkt Cap $MM 51552.71 % Non-US Stocks investment approach designed to track the performance of the CRSP U.S. Large Cap Growth Cat Med Mkt Cap $MM 72963.17 % Pref Index, a broadly diversified index predominantly made up of growth stocks of large U.S. Net Assets $MM 41724.89 % Conv companies. It attempts to replicate the target index by investing all, or substantially all, of its Turnover Ratio 32.00 assets in the stocks that make up the index, holding each stock in approximately the same % Other % Assets in Top 10 Holdings 22.83 proportion as its weighting in the index. % Non-US Bonds Total Number of Holdings 373.00 Manager Name Gerard C. O'Reilly _________________________________________________________________________ Manager Tenure 19.76 97.72 Fund Incept Date 11/02/1992 Prospectus Exp Ratio 0.08 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 97.91 % Cash 0.19 30 % Canada 0.16 % US Stocks 97.72 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.48 % Non-US Stocks 2.09 25 % Eurozone 1.05 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.19 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating 20 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 24 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 13 15 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.21 % Rank Cat 10 Yr 25 % Asia - Emerging 0.00 10 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 3.07 Avg Eff Duration NA 2 300 % Communication Services 3.78 Effective Maturity NA % Consumer Cyclical 17.48 Avg Credit Quality NA 0 % Consumer Defensive 7.12 AAA NA % Healthcare 12.64 AA NA 250 % Industrials 10.68 A NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 4.99 BBB NA % Technology 25.56 BB NA 200 % Energy 8.39 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 6.12 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.17 NR/NA NA Ratio Vanguard Growth Index I CRSP US Large Cap Growth TR USD 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Apple Inc 7.14% 100 Vanguard Growth Index I 1.06 8.12 19.32 22.96 16.64 Coca-Cola Co 1.91% CRSP US Large Cap Growth TR USD 1.06 8.18 19.38 22.30 15.52 Gilead Sciences Inc 1.91% Universe(5%) 3.20 10.38 22.80 25.46 18.33 Google Inc Class A 1.90% Universe(25%) 1.79 7.79 19.10 23.18 16.04 Google Inc Class C 1.89% 50 Universe(Median) 0.91 5.73 16.88 21.56 14.80 Facebook Inc Class A 1.72% Universe(75%) -0.14 4.19 14.67 20.01 13.49 Schlumberger NV 1.65% Universe(95%) -1.95 1.37 11.21 17.31 11.22 Walt Disney Co 1.62% 0 0 Oracle Corporation 1.60% Prospectus Exp Ratio Turnover Ratio Qualcomm Inc 1.48% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 35 33

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Growth Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -40 Up/Down Market Capture Ratio Oct-11 - Sep-14 250 -60 225 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 200 Up Mkt Capture Ratio, % Vanguard Growth Index I CRSP US Large Cap Growth TR USD 175 150 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 125 Vanguard Growth Index I 7.34 5.24 9.16 12.73 -38.19 36.50 17.17 1.89 17.04 32.41 100 CRSP US Large Cap Growth TR USD 6.99 6.40 10.32 15.66 -38.67 35.92 15.77 0.58 15.20 31.75 75 50 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 2 16 7 0 0 25 50 75 100 125 150 175 200 225 3 14 6 Down Mkt Capture Ratio, % 2 Excess Annualized StdDev, % 12 Morningstar Large Growth Universe Vanguard Growth Index I Total Annualized StdDev, % 1 5 CRSP US Large Cap Growth TR USD 10 Sharpe Ratio 0 4 Alpha, % -1 1 8 -2 3 Return vs. Risk 6 -3 2 Oct-11 - Sep-14 4 55 -4 1 50 2 -5 Total Annualized Return, % 45 -6 0 0 0 40 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 35 Vanguard Growth Index I CRSP US Large Cap Growth TR USD 30 25 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 15 Vanguard Growth Index I 0.73 0.99 99.79 1.83 11.70 0.54 10 CRSP US Large Cap Growth TR USD 0.00 1.00 100.00 1.77 11.80 0.00 5 Universe(5%) 3.06 1.18 97.05 1.96 15.12 6.90 0 0 5 10 15 20 25 30 Universe(25%) 0.87 1.08 95.04 1.76 13.34 4.41 Universe(Median) -0.62 1.02 92.47 1.65 12.54 3.65 Total Annualized StdDev, % Universe(75%) -2.59 0.95 88.61 1.50 11.62 2.83 Morningstar Large Growth Universe Vanguard Growth Index I Universe(95%) -5.70 0.84 79.60 1.26 10.39 2.08 Cash CRSP US Large Cap Growth TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 36 34

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Mid Cap Index Adm 3.28 Portfolio Information Investment Strategy Summary % Cash Ticker VIMAX % US Stocks The investment seeks to track the performance of a benchmark index that measures the Morningstar Category Mid-Cap Blend % Bonds investment return of mid-capitalization stocks. The fund employs an indexing investment Avg Mkt Cap $MM 10731.74 % Non-US Stocks approach designed to track the performance of the CRSP U.S. Mid Cap Index, a broadly Cat Med Mkt Cap $MM 8270.60 % Pref diversified index of stocks of mid-size U.S. companies. It attempts to replicate the target Net Assets $MM 53313.89 % Conv index by investing all, or substantially all, of its assets in the stocks that make up the index, Turnover Ratio 32.00 holding each stock in approximately the same proportion as its weighting in the index. % Other % Assets in Top 10 Holdings 6.46 % Non-US Bonds Total Number of Holdings 378.00 _________________________________________________________________________ Manager Name Donald M. Butler Manager Tenure 16.37 96.48 Fund Incept Date 05/21/1998 Prospectus Exp Ratio 0.09 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 96.71 % Cash 0.24 30 % Canada 0.43 % US Stocks 96.48 % Latin America 0.00 % Bonds 0.00 % United Kingdom 1.29 % Non-US Stocks 3.28 25 % Eurozone 0.74 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.26 % Conv 0.00 Mstar Rating 20 % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 37 % Middle East 0.00 5 Year Mstar Rating 15 % Japan 0.00 % Rank Cat 5 Yr 12 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.58 10 % Rank Cat 10 Yr 12 % Asia - Emerging 0.00 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0 % Basic Materials 5.90 Avg Eff Duration NA 3 300 % Communication Services 1.50 Effective Maturity NA % Consumer Cyclical 17.61 Avg Credit Quality NA -5 % Consumer Defensive 7.04 AAA NA % Healthcare 9.71 AA NA 250 % Industrials 14.99 A NA -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 5.63 BBB NA % Technology 14.54 BB NA 2 200 % Energy 7.63 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 10.36 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 5.07 NR/NA NA Ratio Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Western Digital Corp 0.71% 1 100 Vanguard Mid Cap Index Adm -1.16 6.68 15.88 23.31 17.03 Southwest Airlines Co 0.68% CRSP US Mid Cap TR USD -1.15 6.73 15.94 23.30 17.17 Vertex Pharmaceuticals Inc 0.68% Universe(5%) -0.46 6.88 18.59 28.31 18.28 Chipotle Mexican Grill Inc Class A 0.65% Universe(25%) -2.00 4.71 14.94 23.75 16.23 Delphi Automotive PLC 0.65% 50 Universe(Median) -3.30 2.70 11.53 22.14 15.27 Health Care REIT, Inc. 0.64% Universe(75%) -4.65 0.93 9.70 20.04 13.76 AvalonBay Communities Inc 0.62% Universe(95%) -6.21 -1.62 5.93 14.61 10.30 Moody's Corporation 0.62% 0 0 Alcoa Inc 0.60% Prospectus Exp Ratio Turnover Ratio Seagate Technology PLC 0.60% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 37 35

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Mid Cap Index Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 40 50 Total Return, % 20 75 0 100 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -20 Up/Down Market Capture Ratio -40 Oct-11 - Sep-14 225 -60 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 200 Up Mkt Capture Ratio, % 175 Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD 150 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 125 Vanguard Mid Cap Index Adm 20.42 14.04 13.69 6.17 -41.78 40.48 25.59 -1.97 15.99 35.15 100 CRSP US Mid Cap TR USD 20.28 13.31 15.32 7.04 -41.83 36.90 26.16 -1.79 16.69 35.27 75 50 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 18 8 0 0 25 50 75 100 125 150 175 200 225 250 2 16 7 Down Mkt Capture Ratio, % 1 14 Excess Annualized StdDev, % 6 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm Total Annualized StdDev, % 0 12 CRSP US Mid Cap TR USD -1 5 Sharpe Ratio Alpha, % -2 10 1 4 -3 8 Return vs. Risk -4 3 6 Oct-11 - Sep-14 -5 2 45 4 -6 1 40 2 Total Annualized Return, % -7 35 -8 0 0 0 30 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 25 Vanguard Mid Cap Index Adm CRSP US Mid Cap TR USD 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 Mid Cap Index Adm -0.41 1.02 99.85 1.75 12.48 0.55 CRSP US Mid Cap TR USD 0.00 1.00 100.00 1.78 12.22 0.00 5 Universe(5%) 2.70 1.24 97.08 1.89 16.08 7.72 0 0 5 10 15 20 25 30 Universe(25%) 0.01 1.12 96.35 1.69 14.10 4.94 Universe(Median) -2.24 1.07 93.12 1.57 13.38 3.75 Total Annualized StdDev, % Universe(75%) -3.14 0.96 89.45 1.49 12.40 2.91 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm Universe(95%) -7.05 0.73 76.35 1.19 9.95 2.39 Cash CRSP US Mid Cap TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 38 36

Quarterly Investment Monitor Data as of 09/30/2014 Target Small Capitalization Value T 3.181.17 Portfolio Information Investment Strategy Summary % Cash Ticker TASVX % US Stocks The investment seeks above-average capital appreciation. The Portfolio seeks investments Morningstar Category Small Value % Bonds that will increase in value. It normally invests at least 80% of its investable assets in common Avg Mkt Cap $MM 2187.66 % Non-US Stocks stocks of small companies. Small companies are those companies with market capitalizations Cat Med Mkt Cap $MM 2553.48 % Pref comparable to those in the Russell 2000 Value Index. Market capitalization is measured at Net Assets $MM 1968.99 % Conv the time of purchase. Turnover Ratio NA % Other % Assets in Top 10 Holdings 7.16 _________________________________________________________________________ % Non-US Bonds Total Number of Holdings 778.00 Manager Name Paul E. Viera Manager Tenure 12.76 95.55 Fund Incept Date 01/05/1993 Prospectus Exp Ratio 0.68 Phone Number 800-225-1852 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 98.79 % Cash 3.18 30 % Canada 0.65 % US Stocks 95.55 % Latin America 0.27 % Bonds 0.00 % United Kingdom 0.02 % Non-US Stocks 1.17 25 % Eurozone 0.07 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating 20 % Europe - Emerging 0.00 % Other 0.10 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 58 % Middle East 0.21 5 Year Mstar Rating 15 % Japan 0.00 % Rank Cat 5 Yr 25 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 10 % Rank Cat 10 Yr 10 % Asia - Emerging 0.00 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0 % Basic Materials 5.92 Avg Eff Duration NA 2 200 % Communication Services 1.03 Effective Maturity NA % Consumer Cyclical 11.57 Avg Credit Quality NA 180 -5 % Consumer Defensive 3.52 AAA NA % Healthcare 7.29 AA NA 160 -10 % Industrials 19.96 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 5.58 BBB NA % Technology 12.67 BB NA 140 % Energy 5.89 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 22.77 Below B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 3.80 NR/NA NA Ratio Target Small Capitalization Value T S&P 600 Value 1 100 Turnover 3 Year to 1 3 5 Top Ten Holdings 80 Performance Months Date Year Years Years EnerSys 0.83% Target Small Capitalization Value T -5.79 -1.27 7.42 20.62 14.66 Firstmerit Corp 0.75% 60 S&P 600 Value -6.78 -2.62 6.74 24.09 15.66 Teleflex Inc 0.75% Universe(5%) -3.53 1.96 11.89 26.20 17.55 American Equity Investment Life Holding Co 0.74% 40 Universe(25%) -5.88 -0.91 8.39 23.19 15.21 Bristow Group Inc 0.72% Universe(Median) -6.63 -2.65 6.36 21.29 14.08 Amsurg Corp 0.69% 20 Universe(75%) -7.60 -4.48 4.30 19.22 12.99 Silgan Holdings Inc 0.68% Universe(95%) -9.92 -6.58 -0.03 13.07 9.51 Webster Financial Corp 0.68% 0 0 GATX Corp 0.66% Prospectus Exp Ratio Turnover Ratio KAR Auction Services Inc 0.66% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 39 37

Quarterly Investment Monitor Data as of 09/30/2014 Target Small Capitalization Value T Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -40 Up/Down Market Capture Ratio Oct-11 - Sep-14 120 -60 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 100 Up Mkt Capture Ratio, % Target Small Capitalization Value T S&P 600 Value 80 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 60 Target Small Capitalization Value T 24.02 10.10 17.72 0.52 -27.45 26.69 23.63 -0.48 14.14 35.87 S&P 600 Value 23.25 6.45 19.57 -5.54 -29.51 22.85 24.72 -1.38 18.21 39.98 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 18 9 0 0 20 40 60 80 100 120 140 2 16 8 Down Mkt Capture Ratio, % 14 7 Excess Annualized StdDev, % 1 Morningstar SmallCap Value Universe Target Small Capitalization Value T Total Annualized StdDev, % 12 6 S&P 600 Value 0 Sharpe Ratio Alpha, % 10 5 -1 1 8 4 Return vs. Risk -2 6 3 Oct-11 - Sep-14 -3 30 4 2 -4 2 1 25 Total Annualized Return, % -5 0 0 0 20 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Target Small Capitalization Value T S&P 600 Value 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Target Small Capitalization Value T -0.58 0.89 96.58 1.47 13.39 2.96 5 S&P 600 Value 0.00 1.00 100.00 1.54 14.78 0.00 Universe(5%) 2.79 1.15 97.84 1.66 17.41 8.62 0 0 2 4 6 8 10 12 14 16 18 20 22 Universe(25%) 0.00 1.02 96.48 1.48 15.43 4.74 Universe(Median) -1.11 0.97 94.81 1.40 14.63 3.72 Total Annualized StdDev, % Universe(75%) -2.57 0.90 91.13 1.32 13.73 2.84 Morningstar SmallCap Value Universe Target Small Capitalization Value T Universe(95%) -4.98 0.70 80.59 1.16 11.08 2.36 Cash S&P 600 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 40 38

Quarterly Investment Monitor Data as of 09/30/2014 Oppenheimer International Growth Y 2.032.33 Portfolio Information Investment Strategy Summary % Cash Ticker OIGYX % US Stocks The investment seeks capital appreciation. The fund mainly invests in the common stock of Morningstar Category Foreign Large Growth % Bonds growth companies that are domiciled or have their primary operations outside of the United Avg Mkt Cap $MM 15525.25 % Non-US Stocks States. It may invest 100% of its assets in securities of foreign companies. The fund may Cat Med Mkt Cap $MM 31370.15 % Pref invest in emerging markets as well as in developed markets throughout the world. It Net Assets $MM 18021.18 % Conv normally will invest at least 65% of its total assets in common and preferred stocks of issuers Turnover Ratio 12.00 in at least three different countries outside of the United States, and emphasize investments % Other % Assets in Top 10 Holdings 14.29 in common stocks of issuers that the portfolio managers consider to be "growth" companies. % Non-US Bonds Total Number of Holdings 112.00 Manager Name George R. Evans Manager Tenure 18.53 _________________________________________________________________________ Fund Incept Date 03/25/1996 95.63 Prospectus Exp Ratio 0.90 Phone Number 800-225-5677 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 2.08 % Cash 2.33 20 % Canada 2.05 % US Stocks 2.03 % Latin America 1.87 % Bonds 0.00 % United Kingdom 28.86 % Non-US Stocks 95.63 15 % Eurozone 34.80 % Pref 0.01 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 19.42 % 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 26 10 % Middle East 0.00 5 Year Mstar Rating % Japan 5.08 % Rank Cat 5 Yr 15 % Australasia 2.76 10 Year Mstar Rating % Asia - Developed 0.00 5 % Rank Cat 10 Yr 1 % Asia - Emerging 3.08 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 4.37 Avg Eff Duration NA 2 180 % Communication Services 7.12 Effective Maturity NA -5 % Consumer Cyclical 19.61 Avg Credit Quality NA 160 % Consumer Defensive 15.11 AAA NA % Healthcare 10.27 AA NA % Industrials 22.18 A NA 140 -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 14.54 BB NA 120 % Energy 2.30 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 4.26 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.24 NR/NA NA Ratio 100 Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years SAP SE 1.61% 60 Oppenheimer International Growth Y -8.19 -6.00 -0.26 14.72 9.62 Essentra PLC 1.57% MSCI EAFE Large Growth NR USD -5.00 -2.05 3.11 13.43 7.56 Royal Boskalis Westminster NV 1.51% Universe(5%) -3.17 2.62 8.53 17.32 9.94 40 BT Group PLC 1.45% Universe(25%) -5.00 -0.51 5.64 14.77 7.61 Roche Holding AG 1.39% Universe(Median) -5.72 -1.83 4.15 13.49 6.36 Novo Nordisk A/S 1.38% 20 Universe(75%) -6.51 -3.27 2.11 11.93 5.26 Syngenta AG 1.38% Universe(95%) -8.26 -6.43 -0.65 9.80 3.07 Aryzta AG 1.35% 0 0 ARM Holdings PLC 1.34% Prospectus Exp Ratio Turnover Ratio Cp All PLC 1.31% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 41 39

Quarterly Investment Monitor Data as of 09/30/2014 Oppenheimer International Growth Y Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -40 Up/Down Market Capture Ratio Oct-11 - Sep-14 225 -60 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 200 Up Mkt Capture Ratio, % 175 Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD 150 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 125 Oppenheimer International Growth Y 16.46 14.24 30.18 12.93 -41.22 38.44 15.35 -7.31 22.10 25.46 100 MSCI EAFE Large Growth NR USD 14.27 13.89 20.44 19.51 -41.74 28.81 11.48 -12.04 17.06 22.28 75 50 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 2 18 7 0 0 25 50 75 100 125 150 175 200 225 3 16 Down Mkt Capture Ratio, % 6 14 Excess Annualized StdDev, % 2 Morningstar Foreign Stock Universe Oppenheimer International Growth Y Total Annualized StdDev, % 5 12 MSCI EAFE Large Growth NR USD 1 Sharpe Ratio 4 Alpha, % 10 0 1 8 3 Return vs. Risk -1 6 2 Oct-11 - Sep-14 -2 25 4 -3 1 2 Total Annualized Return, % 20 -4 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 15 Oppenheimer International Growth Y MSCI EAFE Large Growth NR USD 10 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Oppenheimer International Growth Y 1.63 0.96 92.64 1.07 13.68 3.74 5 MSCI EAFE Large Growth NR USD 0.00 1.00 100.00 0.99 13.65 0.00 Universe(5%) 3.70 1.09 96.14 1.21 16.01 6.44 0 0 5 10 15 20 25 30 Universe(25%) 1.32 1.04 94.70 1.05 14.65 4.68 Universe(Median) 0.19 0.99 92.91 0.96 14.06 3.82 Total Annualized StdDev, % Universe(75%) -1.11 0.95 90.67 0.87 13.45 3.23 Morningstar Foreign Stock Universe Oppenheimer International Growth Y Universe(95%) -3.30 0.86 83.63 0.72 12.28 2.76 Cash MSCI EAFE Large Growth NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 42 40

Quarterly Investment Monitor Data as of 09/30/2014 American Funds New Perspective R6 6.47 3.54 Portfolio Information Investment Strategy Summary % Cash Ticker RNPGX % US Stocks The investment seeks long-term growth of capital; future income is a secondary objective. Morningstar Category World Stock 41.45 % Bonds The fund seeks to take advantage of investment opportunities generated by changes in Avg Mkt Cap $MM 52954.87 % Non-US Stocks international trade patterns and economic and political relationships by investing in common Cat Med Mkt Cap $MM 39847.08 % Pref stocks of companies located around the world. In pursuing its primary investment objective, Net Assets $MM 57769.26 % Conv it invests primarily in common stocks that the investment adviser believes have the potential Turnover Ratio 30.00 for growth. In pursuing its secondary objective, the fund invests in common stocks of % Other % Assets in Top 10 Holdings 17.71 companies with the potential to pay dividends in the future. % Non-US Bonds Total Number of Holdings 286.00 Manager Name Gregg E. Ireland _________________________________________________________________________ 48.52 Manager Tenure 21.84 Fund Incept Date 03/13/1973 Prospectus Exp Ratio 0.45 Phone Number 800-421-4225 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 46.07 % Cash 6.47 25 % Canada 2.55 % US Stocks 41.45 % Latin America 0.31 % Bonds 0.02 % United Kingdom 9.02 % Non-US Stocks 48.52 20 % Eurozone 15.04 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 11.85 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 3.54 3 Year Mstar Rating 15 % Africa 2.01 % Non-US Bonds 0.00 % Rank Cat 3 Yr 25 % Middle East 0.00 5 Year Mstar Rating % Japan 6.75 % Rank Cat 5 Yr 29 10 % Australasia 1.01 10 Year Mstar Rating % Asia - Developed 4.46 % Rank Cat 10 Yr 12 % Asia - Emerging 0.93 5 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 5.85 Avg Eff Duration NA 3 200 % Communication Services 2.48 Effective Maturity NA % Consumer Cyclical 18.05 Avg Credit Quality NA -5 180 % Consumer Defensive 12.28 AAA NA % Healthcare 14.53 AA NA 160 -10 % Industrials 12.68 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 BBB NA % Technology 14.68 BB NA 140 2 % Energy 4.86 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 14.59 Below B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 NR/NA NA Ratio American Funds New Perspective R6 MSCI AC World Index ND USD 100 Turnover 3 Year to 1 3 5 Top Ten Holdings 80 Performance Months Date Year Years Years Novo Nordisk A/S 4.81% 1 American Funds New Perspective R6 -1.80 1.70 10.49 18.59 11.63 Amazon.com Inc 2.50% 60 MSCI AC World Index ND USD -2.30 3.73 11.32 16.61 10.07 Delta Air Lines Inc 1.44% Universe(5%) -0.01 8.13 15.99 21.34 13.52 Microsoft Corp 1.36% 40 Universe(25%) -1.92 4.16 12.07 19.16 11.86 Bayer AG 1.32% Universe(Median) -3.29 2.35 10.05 17.02 10.78 Home Depot Inc 1.32% 20 Universe(75%) -4.55 0.33 7.29 14.66 8.95 Naspers Ltd Class N 1.27% Universe(95%) -7.24 -3.29 4.36 5.73 5.32 Taiwan Semiconductor Manufacturing Co Ltd 1.27% 0 0 Associated Brit Foods 1.22% Prospectus Exp Ratio Turnover Ratio British American Tobacco PLC 1.19% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 43 41

Quarterly Investment Monitor Data as of 09/30/2014 American Funds New Perspective R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -40 Up/Down Market Capture Ratio Oct-11 - Sep-14 140 -60 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 120 Up Mkt Capture Ratio, % American Funds New Perspective R6 MSCI AC World Index ND USD 100 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 80 American Funds New Perspective R6 14.27 11.28 19.87 16.03 -37.83 37.72 13.11 -7.33 21.19 27.23 60 MSCI AC World Index ND USD 15.23 10.84 20.95 11.66 -42.20 34.63 12.67 -7.35 16.13 22.80 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 6 2 16 10 0 0 25 50 75 100 125 150 175 200 225 250 4 9 14 Down Mkt Capture Ratio, % 8 2 Excess Annualized StdDev, % 12 Morningstar World Stock Universe American Funds New Perspective R6 Total Annualized StdDev, % 7 0 MSCI AC World Index ND USD 10 Sharpe Ratio 6 Alpha, % -2 1 8 5 -4 4 Return vs. Risk 6 -6 3 Oct-11 - Sep-14 4 25 -8 2 2 20 -10 1 Total Annualized Return, % 15 -12 0 0 0 10 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 -5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error American Funds New Perspective R6 2.71 0.93 94.08 1.52 11.69 2.96 -15 MSCI AC World Index ND USD 0.00 1.00 100.00 1.33 12.14 0.00 -20 Universe(5%) 5.45 1.17 95.40 1.76 15.83 9.83 -25 0 5 10 15 20 25 30 Universe(25%) 2.72 1.07 92.70 1.47 14.00 5.74 Universe(Median) 0.83 0.98 88.27 1.32 12.75 4.63 Total Annualized StdDev, % Universe(75%) -1.15 0.90 81.08 1.15 11.69 3.68 Morningstar World Stock Universe American Funds New Perspective R6 Universe(95%) -10.56 0.62 55.81 0.44 9.05 2.65 Cash MSCI AC World Index ND USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 44 42

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Emerging Mkts Stock Idx I 2.43 Portfolio Information Investment Strategy Summary % Cash Ticker VEMIX % US Stocks The investment seeks to track the performance of a benchmark index that measures the Morningstar Category Diversified Emerging Mkts % Bonds investment return of stocks issued by companies located in emerging market countries. The Avg Mkt Cap $MM 20189.54 % Non-US Stocks fund employs an indexing investment approach by investing substantially all (approximately Cat Med Mkt Cap $MM 20391.64 % Pref 95%) of its assets in the common stocks included in the FTSE Emerging Index, while Net Assets $MM 64205.78 % Conv employing a form of sampling intended to reduce risk. The FTSE Emerging Index includes Turnover Ratio 26.00 approximately 851 common stocks of companies located in emerging markets around the % Other % Assets in Top 10 Holdings 13.86 world. % Non-US Bonds Total Number of Holdings 957.00 Manager Name Michael Perre _________________________________________________________________________ Manager Tenure 6.09 96.73 Fund Incept Date 05/04/1994 Prospectus Exp Ratio 0.12 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 0.15 % Cash 0.50 12 % Canada 0.00 % US Stocks 0.15 % Latin America 21.22 % Bonds 0.00 10 % United Kingdom 0.00 % Non-US Stocks 96.73 % Eurozone 0.11 % Pref 2.43 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.03 % Conv 0.00 Mstar Rating 8 % Europe - Emerging 9.09 % Other 0.19 3 Year Mstar Rating % Africa 9.69 % Non-US Bonds 0.00 % Rank Cat 3 Yr 49 6 % Middle East 0.89 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 45 4 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 15.49 % Rank Cat 10 Yr 26 % Asia - Emerging 43.32 2 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 9.46 Avg Eff Duration NA 3 200 -2 % Communication Services 8.80 Effective Maturity NA % Consumer Cyclical 7.30 Avg Credit Quality NA 180 -4 % Consumer Defensive 8.41 AAA NA % Healthcare 2.14 AA NA 160 -6 % Industrials 5.01 A NA 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 2.71 BBB NA % Technology 14.76 BB NA 140 2 % Energy 10.57 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 26.92 Below B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 3.93 NR/NA NA Ratio Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD 100 Turnover 3 Year to 1 3 5 Top Ten Holdings 80 Performance Months Date Year Years Years Tencent Holdings Ltd. 2.02% 1 Vanguard Emerging Mkts Stock Idx I -2.43 4.51 6.19 7.77 4.38 China Mobile Ltd 1.76% 60 FTSE Emerging NR USD -2.34 4.87 6.50 7.23 4.55 Taiwan Semiconductor Manufacturing Co Ltd 1.51% Universe(5%) -1.71 6.85 10.13 11.75 8.27 China Construction Bank Corp H Shares 1.45% 40 Universe(25%) -3.08 3.68 6.22 9.09 5.45 Naspers Ltd Class N 1.35% Universe(Median) -3.77 2.14 4.65 7.76 4.41 Industrial And Commercial Bank Of China Ltd H Shares 1.29% 20 Universe(75%) -4.55 0.17 2.86 6.11 2.96 Taiwan Semiconductor Manufacturing Co Ltd ADR 1.19% Universe(95%) -5.84 -2.26 -0.09 3.44 0.23 Hon Hai Precision Ind Co Ltd 1.17% 0 0 Mtn Group Ltd 1.10% Prospectus Exp Ratio Turnover Ratio America Movil SAB de CV Class L 1.01% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 45 43

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard Emerging Mkts Stock Idx I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 120 0 100 25 Total Return Rank, % 80 60 50 Total Return, % 40 75 20 0 100 -20 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -40 Up/Down Market Capture Ratio -60 Oct-11 - Sep-14 225 -80 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 200 Up Mkt Capture Ratio, % 175 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD 150 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 125 Vanguard Emerging Mkts Stock Idx I 26.24 32.35 29.57 39.15 -52.74 76.35 19.06 -18.63 18.90 -4.99 100 FTSE Emerging NR USD 27.58 34.70 32.84 39.41 -53.03 82.15 19.60 -19.15 17.58 -3.79 75 50 25 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 6 0.8 22 8 0 0 25 50 75 100 125 150 175 200 225 5 20 0.7 7 Down Mkt Capture Ratio, % 4 18 Excess Annualized StdDev, % 0.6 6 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Total Annualized StdDev, % 16 3 FTSE Emerging NR USD 0.5 14 5 Sharpe Ratio 2 Alpha, % 12 1 0.4 4 10 0 Return vs. Risk 0.3 8 3 -1 Oct-11 - Sep-14 6 0.2 2 16 -2 4 0.1 1 14 -3 Total Annualized Return, % 2 -4 0.0 0 0 12 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 10 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR 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 Emerging Mkts Stock Idx I 0.63 0.98 96.87 0.51 17.36 3.08 2 FTSE Emerging NR USD 0.00 1.00 100.00 0.48 17.35 0.00 Universe(5%) 5.36 1.12 96.78 0.79 20.56 7.56 0 0 5 10 15 20 25 30 35 40 Universe(25%) 2.52 0.98 94.91 0.62 17.40 5.68 Universe(Median) 0.81 0.95 92.54 0.52 16.96 4.85 Total Annualized StdDev, % Universe(75%) -1.01 0.87 90.23 0.41 15.94 4.04 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Universe(95%) -3.65 0.78 84.30 0.28 14.57 3.12 Cash FTSE Emerging NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 46 44

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard REIT Index I Portfolio Information Investment Strategy Summary % Cash Ticker VGSNX % US Stocks The investment seeks to provide a high level of income and moderate long-term capital Morningstar Category Real Estate % Bonds appreciation by tracking the performance of a benchmark index that measures the Avg Mkt Cap $MM 9007.48 % Non-US Stocks performance of publicly traded equity REITs. The fund employs an indexing investment Cat Med Mkt Cap $MM 11724.89 % Pref approach designed to track the performance of the MSCI U.S. REIT Index. The index is Net Assets $MM 43099.65 % Conv composed of stocks of publicly traded equity real estate investment trusts (known as REITs). Turnover Ratio 11.00 The fund attempts to replicate the index by investing all, or substantially all, of its assets in % Other % Assets in Top 10 Holdings 38.00 the stocks that make up the index, holding each stock in approximately the same proportion % Non-US Bonds Total Number of Holdings 139.00 as its weighting in the index. Manager Name Gerard C. O'Reilly Manager Tenure 18.39 _________________________________________________________________________ 99.95 Fund Incept Date 05/13/1996 Prospectus Exp Ratio 0.08 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure % United States 100.00 % Cash 0.05 20 % Canada 0.00 % US Stocks 99.95 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 15 Total Annualized Return, % % Europe - ex Euro 0.00 % 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 19 % Middle East 0.00 5 Year Mstar Rating 10 % Japan 0.00 % Rank Cat 5 Yr 12 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 28 % Asia - Emerging 0.00 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 0.00 Avg Eff Duration NA 2 180 0 % Communication Services 0.00 Effective Maturity NA % Consumer Cyclical 0.00 Avg Credit Quality NA 160 % Consumer Defensive 0.00 AAA NA % Healthcare 0.00 AA NA % Industrials 0.00 A NA 140 -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 100.00 BBB NA % Technology 0.00 BB NA 120 % Energy 0.00 B NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 0.00 Below B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 NR/NA NA Ratio 100 Vanguard REIT Index I MSCI US REIT NR USD 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Simon Property Group Inc 8.43% 60 Vanguard REIT Index I -3.12 13.99 13.21 16.57 15.94 Public Storage 4.10% MSCI US REIT NR USD -3.38 13.04 11.90 15.28 14.62 Equity Residential 3.64% Universe(5%) -1.89 15.08 15.04 18.11 16.75 40 Health Care REIT, Inc. 3.31% Universe(25%) -2.82 14.12 14.10 16.52 15.81 Prologis Inc 3.26% Universe(Median) -3.07 13.59 13.25 15.95 15.35 AvalonBay Communities Inc 3.19% 20 Universe(75%) -3.34 12.89 12.50 15.50 14.74 HCP Inc 3.17% Universe(95%) -3.83 7.75 9.21 14.06 11.91 Ventas Inc 3.09% 0 0 Boston Properties Inc 2.96% Prospectus Exp Ratio Turnover Ratio Vornado Realty Trust 2.85% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 47 45

Quarterly Investment Monitor Data as of 09/30/2014 Vanguard REIT Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Oct-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Sep-14 -30 Up/Down Market Capture Ratio -40 Oct-11 - Sep-14 140 -50 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 120 Up Mkt Capture Ratio, % Vanguard REIT Index I MSCI US REIT NR USD 100 Annual Return % 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 80 Vanguard REIT Index I 30.93 12.05 35.15 -16.38 -36.95 29.76 28.56 8.70 17.65 2.48 60 MSCI US REIT NR USD NA NA 34.18 -17.84 -39.05 26.27 26.97 7.48 16.47 1.26 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 6 2 16 9 0 -20 0 20 40 60 80 100 120 140 14 8 Down Mkt Capture Ratio, % 5 7 Excess Annualized StdDev, % 12 Morningstar Real Estate Universe Vanguard REIT Index I Total Annualized StdDev, % 4 6 MSCI US REIT NR USD 10 Sharpe Ratio 3 Alpha, % 5 1 8 4 2 Return vs. Risk 6 3 1 Oct-11 - Sep-14 4 35 2 0 2 1 30 Total Annualized Return, % -1 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 Vanguard REIT Index I MSCI US REIT 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 Vanguard REIT Index I 1.15 1.00 99.98 1.10 14.88 0.22 5 MSCI US REIT NR USD 0.00 1.00 100.00 1.03 14.90 0.00 Universe(5%) 5.75 1.02 99.69 1.54 15.30 8.09 0 0 2 4 6 8 10 12 14 16 18 20 22 Universe(25%) 1.77 1.00 99.38 1.14 14.89 2.55 Universe(Median) 0.90 0.97 98.87 1.08 14.57 1.66 Total Annualized StdDev, % Universe(75%) 0.47 0.93 97.34 1.05 14.15 1.20 Morningstar Real Estate Universe Vanguard REIT Index I Universe(95%) -0.16 0.64 75.38 0.99 12.85 0.94 Cash MSCI US REIT NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 48 46

Quarterly Investment Monitor Data as of 09/30/2014 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 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 performance. 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 reported as average market capitalization. asset value, reinvesting all income and capital-gains distributions during that month, and dividing by the starting NAV. Reinvestments are This number is different from the fund's median market cap--the capitalization of the median stock in its portfolio. The geometric mean made 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 Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 49 47

Quarterly Investment Monitor Data as of 09/30/2014 Disclaimer This Milliman work product was prepared solely for the internal business use of City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45. Milliman's work may not be provided to third parties without Milliman's prior written consent. The analysis in this report was prepared utilizing data from third parties and other sources including but not limited to internal computer software and databases. Reasonable care has been taken to assure the accuracy of the data contained herein, and comments are objectively stated and are based on facts gathered in good faith. These reports do not constitute investment advice with respect to the sale or disposition of individual securities. Unless explicitly stated in your Service Agreement, there should be no reliance on Milliman services to provide analysis or reporting on a daily basis, the changes to manager rankings, ratings or opinions thereon and are not intended to monitor investment manager compliance with individual security selection criteria, limits on security selection, and/or prohibitions to the holding of certain securities or security types. The One Year, Three Year, Five Year, and Ten Year rates of return are time-weighted annual rates. The One Month, Three Month, and Year to Date rates of return are rates for the period indicated. All returns include fund internal expenses, except sales charges, if any. The rates of return shown are for the mutual funds in which the retirement program participates, not for the plan specifically. Returns credited to individual accounts will vary due to the timing of contributions, transfers, and withdrawals. Past performance is no guarantee of future results. Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request. Milliman disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 DOCUMENT PAGE 50 48

Albany Dallas San Francisco Walnut Creek http://us.milliman.com/solutions/investment Memorandum October 14, 2014 To: Clients From: Milliman Investment Consulting Subject: Update on PIMCO Total Return Milliman Recommends Reviewing Alternatives for PIMCO Total Return and PIMCO Low Duration and Related Strategies The surprising high level change at one of the largest investment management firms in the country demands the attention of our clients, plan fiduciaries and Milliman as your Investment Advisor. Any action (or inaction) requires thoughtful consideration of the facts as they develop. Over the short- term, we think the team in place at PIMCO and the fund liquidity they have constructed will be adequate to produce attractive risk and return. Over the longer term, we think clients would be prudent to consider their options in the intermediate fixed income asset class and each client will need to decide if PIMCO remains a prudent choice. Milliman will continue to conduct due diligence on PIMCO. In addition to frequent contact with PIMCO via email and phone calls, we will be conducting an additional on-site visit with PIMCO in mid-October. Overview On Friday, September 26, 2014, Bill Gross left the firm he founded, Pacific Investment Management Company, LLC (PIMCO) to run a bond fund at Janus Capital Group. The friction between Bill Gross and former PIMCO employees is well documented. In hindsight, it may seem clear that Bill Gross was the last piece of a dysfunctional, organizational challenge that needed to be addressed. However, the departure of the firm’s founder came as quite a shock to us and the investment community. Later that day, PIMCO CEO Doug Hodge expressed gratitude for the contributions Gross provided to the firm over the years, as expected, but expressed that the firm leadership had fundamental differences regarding the best way for PIMCO to move forward. Personnel Changes In March 2014, Mohamed El-Erian, Chief Executive Officer (CEO) and co-CIO with Gross, suddenly departed PIMCO. The reason given at the time was so he could spend more time with his family, though later it appeared he and Gross were having trouble continuing to work together. Based on 1

Milliman Investment Consulting Memo October 14, 2014 Gross’ age and El-Erian’s exit, PIMCO leadership announced a succession plan and changes to the organizational structure, creating a Deputy CIO structure. This new structure included six managers in the role of deputy CIO under Gross: Dan Ivascyn, Scott Mather, Mark Kiesel, Mihir Worah, Andrew Balls, and Virginie Maisonnueve. Doug Hodge was named CEO and Jay Jacobs was named President. Paul McCulley also returned to PIMCO as the firm’s Chief Economist, an addition we viewed favorably. Now, with Gross’ departure, Dan Ivascyn will be Group CIO. The remaining five deputy CIOs were promoted to CIO. These CIOs mange 75% of the firm’s assets. The Portfolio Managers for the Total Return strategy (and related strategies such as Harbor Bond) will be Scott Mather, Mark Kiesel, and Mihir Worah. These three managers have been working together for more than a decade. As Group CIO, Mr. Ivascyn continues to oversee the firm’s mortgage, credit, alternatives and income strategies. He was a Morningstar Fixed Income Manager of the Year in 2013 for the PIMCO Income fund. Mark Kiesel was a Morningstar Manager of the year in 2012. The Portfolio Managers for the Low Duration strategy fund will be Scott Mather and Jerome Schneider, head of PIMCO’s short-term and funding desk. As we understand it, Gross is not building out the same team or structure at his new home, Janus. This and non-compete agreements (as they are structured in California) make it unlikely we’ll see talent migrate to Janus. Organizational Changes With regard to PIMCO as a firm, this could be viewed as a positive. This new structure removes the uncertainty of what the firm would look like when the 70 year old Gross retired or was no longer a Portfolio Manager. The firm has a well-established process of structuring investment decisions within the context of their secular forums for top-down macro views, and using the sector specialist for the individual security selection. This process will continue with, as PIMCO calls it, “more rigor.” In our analysis and through our discussions with PIMCO, it appears Gross’ process operated differently than the rest of the firm and in some respects, outside of this formalized and team structure. This may have contributed to employee dissatisfaction and perhaps recent underperformance. Current Environment PIMCO is a leading investment firm with a deep bench of intelligent and successful investment professionals with a long track record of top notch performance at Total Return and many other investment strategies. The teams now in place have the skill and tools to produce an attractive investment return. However they have a number of challenges to face. Cash flow Including September, the Total Return fund has seen 17 straight months of outflows. Low Duration has also seen steady outflows. Some of this can be explained by investors (broadly across the markets) selling bonds and some of these outflows are likely the result of El-Erian’s departure. It’s no surprise there was significant cash outflow following Gross’ departure. Each day brings new PIMCO clients announcing their intentions. Some have already replaced PIMCO and some say they will do so in the near future. Other large plans have reiterated their commitment to PIMCO and the ongoing team. We are monitoring cash flows as closely as we can (mutual fund data is reported monthly, ETFs are reported daily) and so far, Gross’ new fund at Janus has not attracted much of the cash outflow from Total Return. 2

Milliman Investment Consulting Memo October 14, 2014 We believe the PIMCO funds are prepared for this liquidity PIMCO Total Return Cash Flow Comparison crunch, at least over the Fund Level Intermediate‐Term Bond short term. As we mentioned in a prior memo, the funds 10.0 Billions are made up of thousands of 5.0 highly liquid investments as 0.0 well as derivatives that trade ‐5.0 ‐10.0 in significant volumes. ‐15.0 Selling an open-ended ‐20.0 mutual fund is not the same ‐25.0 as selling an individual ‐30.0 security and thus, market impact and cash flows must be viewed in the appropriate light. What is not yet clear is how long these outflows will last and what impact they might have on performance months down the road. Personnel A smaller asset base will mean lower fee revenue and may impact the firm’s resources and the ability to compensate some managers. PIMCO has stated they have retention incentives in place to combat personnel departures. Time will tell if these are meaningful enough. However the team structure put in place at the beginning of the year should now be fully implemented. If Gross was difficult to work with, as some ex-employees and the press have suggested, the new environment should be a positive change. However, Gross’ departure could lead to other changes among portfolio management professionals not related to fees and compensation which are hard to anticipate such as those who may find PIMCO less attractive as a firm without Gross. Performance While the long track record at PIMCO is very attractive, short-term performance has been disappointing. As of the end of last quarter, Total Return was in the 79th percentile of its peer group, lagging the median manager by 76 basis points and the BC Aggregate Bond Index by 77 basis points, net of fees. However, over the last three years, Total Return is in the top 20%, outperforming the median manager by 120 basis points and the BC Aggregate Bond Index by 214 basis points. As of this writing, the relative performance over the very short, 1-week time frame, Total Return is in the top 30%. Recommendations PIMCO is a substantial firm with significant resources and an extremely deep bench of analysts, portfolio managers and other professionals. The new portfolio managers replacing Gross have been very successful and fit well in the team structure. The fund’s liquidity is well positioned for the expected negative cash flows over the near term. The firm’s strategy of macro views and sector teams’ security selection has been working for years and their long-term track record is among the industry’s best. However, the expected loss of assets and possibly personnel demand increased scrutiny of PIMCO and an evaluation of potential candidates for our clients’ fixed income assets. 3

Competitor Analysis Report Core Fixed Income Prepared By Milliman, Inc. DOCUMENT PAGE 51

Competitor Analysis | Intermediate Term Bond Performance Relative to Peer Group As of Date: 10/23/2014 Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond 7.50 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 Return 2.00 1.50 YTD 1 year 3 years 5 years 10 years PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond Trailing Peer Group Performance As of Date: 10/23/2014 YTD % rank 1 year % rank 3 years % rank 5 years % rank 10 years % rank PIMCO Total Return Instl 4.01 82 2.97 84 4.89 20 5.18 42 5.96 5 Loomis Sayles Core Plus Bond Y 7.02 3 6.21 5 6.80 2 7.49 2 6.79 1 Dodge & Cox Income 5.31 38 5.35 15 4.98 18 5.44 33 5.35 17 Barclays US Gov/Corp Intermediate TR USD 3.17 92 2.48 90 2.38 87 3.63 89 4.05 73 US OE Intermediate-Term Bond 4.87 60 4.11 54 3.94 47 4.91 51 4.20 66 DOCUMENT PAGE 52 Page 1 of 13

Competitor Analysis | Intermediate Term Bond Calendar Year Performance Relative to Peer Group Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond 30.0 25.0 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 Return -20.0 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond Calendar Year Returns Data Point: Return Peer Group: Open End Funds - U.S. - Intermediate-Term Bond 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 PIMCO Total Return Instl -1.92 10.36 4.16 8.83 13.83 4.82 9.07 3.99 2.89 5.14 Loomis Sayles Core Plus Bond Y -0.56 11.59 7.90 10.74 16.93 0.85 6.35 5.64 1.35 5.35 Dodge & Cox Income 0.64 7.94 4.76 7.17 16.05 -0.29 4.68 5.30 1.98 3.64 Barclays US Gov/Corp Intermediate TR USD -0.84 3.79 5.88 5.91 5.24 4.91 7.33 4.08 1.55 3.04 US OE Intermediate-Term Bond -1.38 6.85 5.78 7.71 13.47 -5.07 4.62 4.11 1.79 3.91 DOCUMENT PAGE 53 Page 2 of 13

Competitor Analysis | Intermediate Term Bond 36 Month Rolling Return Quartiles Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond Rolling Window: 3 Years 1 Month shift 1st to 25th Percentile 26th to Median 51st to 75th Percentile 76th to 100th Percentile 0.0 25.0 50.0 Return Rank % 75.0 100.0 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 2011 2012 2013 2014 PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD 60 Month Rolling Return Quartiles Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond Rolling Window: 5 Years 1 Month shift 1st to 25th Percentile 26th to Median 51st to 75th Percentile 76th to 100th Percentile 0.0 25.0 50.0 Return Rank % 75.0 100.0 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07 08 09 2011 2012 2013 2014 PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD DOCUMENT PAGE 54 Page 3 of 13

Competitor Analysis | Intermediate Term Bond 3-Year Risk-Reward 5-Year Risk-Reward Time Period: 10/1/2011 to 9/30/2014 Time Period: 10/1/2009 to 9/30/2014 PIMCO Total Return Instl PIMCO Total Return Instl 8.00 10.00 Loomis Sayles Core Plus Bond Y Loomis Sayles Core Plus Bond Y Dodge & Cox Income Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond US OE Intermediate-Term Bond 8.00 6.00 6.00 4.00 4.00 2.00 2.00 Return Return 0.00 0.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 0.00 1.00 2.00 3.00 4.00 5.00 Std Dev Std Dev 3-Year Risk 5-Year Risk Time Period: 10/1/2011 to 9/30/2014 Time Period: 10/1/2009 to 9/30/2014 Loss Loss Tracking Tracking Std Dev Std R2 Std Dev Std R2 Error Error Dev Dev PIMCO Total Return Instl 3.78 2.69 2.03 90.01 PIMCO Total Return Instl 3.61 2.43 2.17 65.92 Loomis Sayles Core Plus Bond Y 4.34 3.34 2.78 77.10 Loomis Sayles Core Plus Bond Y 4.00 2.76 2.70 57.05 Dodge & Cox Income 2.73 2.06 1.51 71.27 Dodge & Cox Income 2.49 1.66 1.85 50.87 Barclays US Gov/Corp Intermediate TR USD 1.95 1.25 0.00 100.00 Barclays US Gov/Corp Intermediate TR USD 2.38 1.52 0.00 100.00 US OE Intermediate-Term Bond 2.82 2.14 1.11 91.59 US OE Intermediate-Term Bond 2.77 1.82 1.19 81.85 DOCUMENT PAGE 55 Page 4 of 13

Competitor Analysis | Intermediate Term Bond 3-Year Upside-Downside Capture 5-Year Upside-Downside Capture Time Period: 10/1/2011 to 9/30/2014 Time Period: 10/1/2009 to 9/30/2014 280.00 PIMCO Total Return Instl 210.00 PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Loomis Sayles Core Plus Bond Y Dodge & Cox Income Dodge & Cox Income 240.00 180.00 Barclays US Gov/Corp Intermediate TR USD Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond US OE Intermediate-Term Bond 200.00 150.00 160.00 120.00 120.00 90.00 80.00 60.00 Up Capture Ratio Up Capture Ratio 40.00 30.00 0.00 0.00 0.00 30.00 60.00 90.00 120.00 150.00 180.00 210.00 0.00 30.00 60.00 90.00 120.00 150.00 180.00 Down Capture Ratio Down Capture Ratio 3-Year Market Performance 5-Year Market Performance Time Period: 10/1/2011 to 9/30/2014 Time Period: 10/1/2009 to 9/30/2014 Up Down Up Down Batting Best Worst Batting Best Worst Capture Capture Capture Capture Average Month Month Average Month Month Ratio Ratio Ratio Ratio PIMCO Total Return Instl 77.78 195.57 161.97 2.58 -2.64 PIMCO Total Return Instl 71.67 141.32 130.14 2.58 -2.64 Loomis Sayles Core Plus Bond Y 75.00 234.17 144.25 2.31 -2.85 Loomis Sayles Core Plus Bond Y 75.00 169.90 96.76 2.44 -2.85 Dodge & Cox Income 77.78 156.67 70.89 2.11 -1.70 Dodge & Cox Income 65.00 111.91 36.50 2.11 -1.70 Barclays US Gov/Corp Intermediate TR USD 100.00 100.00 100.00 1.01 -1.17 Barclays US Gov/Corp Intermediate TR USD 100.00 100.00 100.00 1.45 -1.46 US OE Intermediate-Term Bond 72.22 147.15 115.77 1.58 -2.06 US OE Intermediate-Term Bond 66.67 120.91 88.86 1.70 -2.06 DOCUMENT PAGE 56 Page 5 of 13

Competitor Analysis | Intermediate Term Bond Sharpe Ratio vs. Peer Group As of Date: 9/30/2014 Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond 2.8 PIMCO Total Return Instl 2.5 Loomis Sayles Core Plus Bond Y 2.3 2.0 Dodge & Cox Income 1.8 Barclays US Gov/Corp Intermediate TR USD 1.5 US OE Intermediate-Term Bond 1.3 Sharpe Ratio 1.0 0.8 0.5 0.3 0.0 1 Year 3 years 5 years Alpha vs. Peer Group As of Date: 9/30/2014 Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond 6.0 PIMCO Total Return Instl 5.3 Loomis Sayles Core Plus Bond Y 4.5 3.8 Dodge & Cox Income 3.0 Barclays US Gov/Corp Intermediate TR USD 2.3 US OE Intermediate-Term Bond 1.5 0.8 0.0 Alpha -0.8 -1.5 1 Year 3 years 5 years Information Ratio vs. Peer Group As of Date: 9/30/2014 Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond 4.5 PIMCO Total Return Instl 4.0 Loomis Sayles Core Plus Bond Y 3.5 Information Ratio (geo) 3.0 Dodge & Cox Income 2.5 Barclays US Gov/Corp Intermediate TR USD 2.0 1.5 US OE Intermediate-Term Bond 1.0 0.5 0.0 -0.5 -1.0 1 Year 3 years 5 years DOCUMENT PAGE 57 Page 6 of 13

Competitor Analysis | Intermediate Term Bond Returns-Based Style Map Time Period: 10/1/2007 to 9/30/2014 Rolling Window: 3 Years 3 Months shift PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond Morningstar Long-Term Corp Morningstar Long-Term US TR Govt TR Morningstar Intermediate Morningstar Intermediate Corp TR US Govt TR Morningstar Short-Term Morningstar Short-Term US Corp TR Govt TR DOCUMENT PAGE 58 Page 7 of 13

Competitor Analysis | Intermediate Term Bond Supplementary Data 150.0 130.4 125.0 100.0 87.2 78.3 75.0 62.6 50.0 24.6 25.0 20.0 11.3 10.2 8.0 8.6 10.8 3.8 1.4 1.0 2.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -25.0 -50.0 -61.6 -75.0 Asset Alloc Cash % (Net) Asset Alloc US Equity % (Net) Asset Alloc Non-US Equity % Asset Alloc US Bond % (Net) Asset Alloc Non-US Bond % Asset Alloc Other % (Net) (Net) (Net) PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond Fixed Income Sectors Portfolio Date: 6/30/2014 Fixed-Inc Fixed-Inc Fixed-Inc Fixed-Inc Fixed-Inc Fixed-Inc % Asset Super # of # of Average Average Super Super Super Super Super in Top # of Sector Stock Bond Eff Credit Sector Sector Sector Sector Sector 10 Holdings Cash & Holdings Holdings Duration Quality Government % Municipal % Corporate % Securitized % Derivative % Holdings Equivalents % PIMCO Total Return Instl 100.96 3.63 13.47 23.53 -176.00 123.13 71.55 17,593 1 16,616 4.97 Loomis Sayles Core Plus Bond Y 22.68 0.00 46.48 19.85 9.69 0.00 21.95 372 0 360 5.60 BBB Dodge & Cox Income 15.27 5.23 37.01 36.61 5.42 0.00 13.58 800 0 774 4.24 A Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond 31.28 1.27 29.94 32.18 0.71 2.48 35.07 766 6 534 4.85 BBB DOCUMENT PAGE 59

Competitor Analysis | Intermediate Term Bond Maturity Breakdown 50.0 40.1 40.0 33.4 30.0 27.5 27.8 22.6 21.3 20.0 17.3 16.0 15.7 15.5 13.4 12.8 12.4 11.9 11.6 9.9 9.5 9.2 10.0 7.4 8.3 7.8 8.3 5.5 6.0 3.5 3.2 3.9 3.3 3.9 1.8 1.5 1.5 0.0 Maturity 1-3 Yr % (Net) Maturity 3-5 Yr % (Net) Maturity 5-7 Yr % (Net) Maturity 7-10 Yr % Maturity 10-15 Yr % Maturity 15-20 Yr % Maturity 20-30 Yr % Maturity 30+ Yr % (Net) (Net) (Net) (Net) (Net) PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond Credit Quality 70.0 64.0 60.0 52.2 50.0 40.5 40.0 36.0 30.0 23.2 24.6 21.6 19.8 20.0 18.2 16.3 13.0 13.8 9.0 10.3 10.0 6.5 8.0 5.9 3.0 4.0 3.2 1.8 2.0 1.0 1.0 0.5 0.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Credit Qual AAA % Credit Qual AA % Credit Qual A % Credit Qual BBB % Credit Qual BB % Credit Qual B % Credit Qual Below B % Credit Qual Not Rated % PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond DOCUMENT PAGE 60 Page 9 of 13

Competitor Analysis | Intermediate Term Bond Expense Ratio Relative to Peer Group Manager Tenure Relative to Peer Group Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond PIMCO Total Return Instl PIMCO Total Return Instl 1.7 26.0 Loomis Sayles Core Plus Bond Y Loomis Sayles Core Plus Bond Y 1.6 24.0 Dodge & Cox Income Dodge & Cox Income 1.5 22.0 Barclays US Gov/Corp Intermediate TR USD Barclays US Gov/Corp Intermediate TR USD 1.4 20.0 US OE Intermediate-Term Bond US OE Intermediate-Term Bond 1.3 18.0 1.2 16.0 1.1 14.0 1.0 12.0 0.9 10.0 0.8 8.0 0.7 0.6 6.0 0.5 4.0 0.4 2.0 0.3 0.0 Prospectus Net Expense Ratio Manager Tenure (Longest) Fund Size Relative to Peer Group Turnover Ratio Relative to Peer Group Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond Peer Group (5-95%): Open End Funds - U.S. - Intermediate-Term Bond PIMCO Total Return Instl PIMCO Total Return Instl 220,000.0M 750.0 Loomis Sayles Core Plus Bond Y Loomis Sayles Core Plus Bond Y 700.0 200,000.0M Dodge & Cox Income Dodge & Cox Income 650.0 180,000.0M Barclays US Gov/Corp Intermediate TR USD Barclays US Gov/Corp Intermediate TR USD 600.0 US OE Intermediate-Term Bond US OE Intermediate-Term Bond 160,000.0M 550.0 500.0 140,000.0M 450.0 120,000.0M 400.0 100,000.0M 350.0 300.0 80,000.0M 250.0 60,000.0M 200.0 150.0 40,000.0M 100.0 20,000.0M 50.0 0.0M 0.0 Fund Size Turnover Ratio % DOCUMENT PAGE 61 Page 10 of 13

Competitor Analysis | Intermediate Term Bond Snapshot Prospectus Morningstar Morningstar Net Inception Ticker Rating CUSIP Category Expense Date Overall Ratio PIMCO Total Return Instl PTTRX US OE Intermediate-Term Bond ÙÙÙÙ 0.46 5/11/1987 693390700 Loomis Sayles Core Plus Bond Y NERYX US OE Intermediate-Term Bond ÙÙÙÙÙ 0.54 12/30/1994 63872R764 Dodge & Cox Income DODIX US OE Intermediate-Term Bond ÙÙÙÙ 0.43 1/3/1989 256210105 Barclays US Gov/Corp Intermediate TR USD 12/31/1998 US OE Intermediate-Term Bond Intermediate-Term Bond ÙÙÙ 0.89 11/1/1954 Manager Manager Manager Advisor Subadvisor Ownership Name Level PIMCO Total Return Instl PIMCO LLC (US) Multiple Multiple Loomis Sayles Core Plus Bond Y Loomis Sayles & Company L.P. Multiple Multiple Dodge & Cox Income Dodge & Cox Multiple Multiple Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond Firm Firm % Firm % Firm % Firm % Firm % Firm Share Firm % Assets Firm Share Share Assets Manager Classes Assets Manager Average Classes Classes Manager Retention in Manager Investment Morningstar in Low in High Investment Rate 5 Average Investment Over Rating Fee Fee $500,001-$1 Year Fee $100,001-$500,000 $1 Overall Level Level million Level million PIMCO Total Return Instl 92 21 19 18 11 3 0 3 Loomis Sayles Core Plus Bond Y 96 14 29 9 10 29 56 3 Dodge & Cox Income 98 100 0 0 0 0 100 4 Barclays US Gov/Corp Intermediate TR USD US OE Intermediate-Term Bond DOCUMENT PAGE 62 Page 11 of 13

Competitor Analysis | Intermediate Term Bond Monthly Estimated Fund-Level Net Flow Time Period: 11/1/2012 to 9/30/2014 Estimated Fund-Level Net Flow - aggr from share classes (Monthly) 5,000,000,000.0 2,500,000,000.0 0.0 -2,500,000,000.0 -5,000,000,000.0 -7,500,000,000.0 -10,000,000,000.0 -12,500,000,000.0 -15,000,000,000.0 -17,500,000,000.0 -20,000,000,000.0 12/2012 3/2013 6/2013 9/2013 12/2013 3/2014 6/2014 9/2014 PIMCO Total Return Instl Loomis Sayles Core Plus Bond Y Dodge & Cox Income US OE Intermediate-Term Bond Estimated Net Flow $Mil (Month-End) Effective Fund Size 1 month 3 months 6 months YTD 1 year 3 years 5 years Date PIMCO Total Return Instl 201,585 9/30/2014 -17,879 -22,645 -34,553 -42,804 -55,178 -68,952 -33,538 Loomis Sayles Core Plus Bond Y 2,928 9/30/2014 165 414 799 875 842 1,606 1,828 Dodge & Cox Income 30,264 9/30/2014 1,111 2,465 4,053 4,585 3,416 3,530 7,118 US OE Intermediate-Term Bond DOCUMENT PAGE 63 Page 12 of 13

Competitor Analysis | Intermediate Term Bond Disclaimer This Milliman work product was prepared solely for the internal business use of Milliman clients. 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. DOCUMENT PAGE 64 Page 13 of 13