Attachment

CIVILIAN PENSION BOARD AGENDA AUGUST 8, 2013 - 2:00 P.M. CITY HALL CONFERENCE ROOM 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Adoption of Minutes - Civilian Pension Board Meeting of May 9, 2013 2. Organizational Issues - Election of Chair 3. Quarterly Performance Review (Quarter Ending June 30, 2013) (Milliman, Inc.) (Staff Recommends Acceptance of the Report) 4. Investment Manager Recommendations (Milliman, Inc.) 5. Audit Procedures (SB & Company, LLC) 6. Scheduling of Future Meeting Dates (Suggested Dates - November 14, 2013; February 13, 2014; May 8, 2014; August 14, 2014) 7. Adjournment TO ASSURE THAT THERE WILL BE A QUORUM, PLEASE RSVP BY CONTACTING THE CITY CLERK’S OFFICE BY EMAIL AT CITYCLERK@DOVER.DE.US OR BY CALLING 736-7008 AS SOON AS POSSIBLE. /js S:\AGENDAS-MINUTES-PACKETS\Misc-Agendas\PENSION BOARDS\2013\08-08-2013 DRAFT CIVIILAN PENSION BOARD AGENDA.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

CIVILIAN PENSION BOARD The Civilian Pension Board meeting was held on May 9, 2013 at 2:00 p.m. with Chairman Bonar presiding. Members present were Councilman Lynn, Mr. Blakeman, Mr. Clendaniel, Mr. Koenig, and Mrs. Mitchell. Mrs. Hettinger was absent. AGENDA ADDITIONS/DELETIONS Mr. Blakeman moved to approve the agenda as presented, seconded by Mr. Koenig and unanimously carried. Adoption of Minutes - Civilian Pension Board Meeting of February 14, 2013 Mr. Blakeman moved for adoption of the minutes of the Civilian Pension Board Meeting of February 14, 2013, seconded by Mr. Clendaniel and unanimously carried. Adoption of Minutes - Special Civilian Pension Board Meeting of March 25, 2013 Mr. Koenig moved for adoption of the minutes of the Special Civilian Pension Board Meeting of March 25, 2013, seconded by Mr. Lynn and unanimously carried. Quarterly Performance Review (Quarter Ending March 31, 2013) (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, Milliman, Inc., reviewed the Quarterly Investment Monitor Summary Report for the Quarter Ending March 31, 2013. He advised members that as of the end of the first quarter, plan assets totaled approximately $25M, which was an increase from the end of 2012. He noted that there had been contributions to and withdrawals from the plan and that withdrawals had exceeded contributions; however, there was upward movement in the markets. He stated that the plan had performed fairly well for the quarter with a return of approximately 4%, which would be a potential 17%-18% return for the year, although there was no guarantee that similar returns would be realized during the remaining quarters. He noted that the plan’s performance did exceed the benchmark. Referring to Page 9 of the report, Asset Allocation, Mr. Marzinsky stated that the plan was in line with the target allocations. He noted that as cash flow and deposits go into the plan, as well as near the end of each quarter, Milliman, Inc. reviews the allocations of the plan. Mr. Marzinsky advised members that equity investments had grown and fixed incomes investments were down, so Milliman rebalanced to the target elections. He stated it was important to rebalance throughout the year to maintain the risk/return profile. In reviewing Page 10, Investment Policy Review - Active Management, Mr. Marzkinsky stated that the highlighted areas indicated slightly below average performance. He noted that some of the investments were underperforming the benchmarks; however, they were still ranking well compared to peers and he felt there were no major concerns at this time. Mr. Marzinsky explained that some anomalies in the Beta and Tracking Error on Page 11, Investment Policy Review - Passive Management were due to Vanguard changing its underlying indexes. He noted that Beta should normally be around 1.0 and Tracking Error is generally desired to be close to 0.5. He advised members that Vanguard had changed its equity indexes from Morgan Stanley Composite Indexes (MSCI) to Financial Times and London Stock Exchange (FTSE) for

CIVILIAN PENSION BOARD MEETING OF MAY 9, 2013 PAGE 2 international investments and to Center for Research in Security Prices (CRSP) for U. S. investments, therefore, he was not concerned about the numbers reflected in the report. He indicated that the Civilian Pension Plan had a good mix between active and index funds. He noted that the returns reflected on Page 12 showed that the new allocations were beating the index year-to-date. He noted that the prior allocation was trailing the index over this period, so he felt that the plan was on a good trend and, with the new portfolio allocation, would exceed the portfolio index. Mr. Marzinsky advised members that interest rates were still very low, which was a potential cause for concern. He stated that the Plan did have a fair amount of fixed income investments (approximately 60-65% equity; 40-45% fixed income) and as interest rates increase, fixed income investments would be affected. He stated that this would be monitored and that consideration may be given during the next meeting to reallocating the plan slightly to counteract some of the potential future effects of a possible rise in interest rates. Discussion - Audit of the General Employees’ Pension Fund During the Civilian Pension Board Meeting of February 14, 2013, members requested that the cost of performing an audit of the General Employees’ Pension Fund every one (1), three (3), and five (5) years be examined and reported to the Board. Mrs. Donna Mitchell, Controller/Treasurer, advised members that SB & Company, LLC had provided a response. She explained that she had met with Mr. Blakeman, who had suggested the audit, and explained that the City’s pension funds are audited through the City’s Comprehensive Annual Financial Report (CAFR) process. She stated that SB & Company explained that they perform an internal audit document and questioned to what depth pension funds would be audited as part of a separate audit. She informed members that the State performs a separate audit on their pension plans because, unlike the City, State pension plans are not part of their annual financial report. She indicated that it would be the Board’s decision whether or not to proceed, noting that the range of the estimate provided by SB & Company was $9,000 to $100,000, depending upon the scope of the audit requested. Mr. Blakeman stated his concern that funds audited in the general budget audit include the amount of money that the City transfers into the Civilian Pension Fund; however, the plan itself is not being examined, including investments, checks, etc. Responding, Mrs. Mitchell stated that the pension reports that indicate the issuance of checks by Wells Fargo, bank reconciliations, and financial transactions that reflect funds going in and out of accounts are all examined as part of the audit process. Purchases and redemptions of investments themselves (e.g., from Vanguard) are not audited. She explained that Wells Fargo also has an audit performed and stated that if another auditor were needed to audit the Civilian Pension Fund’s transactions within Wells Fargo, this could be arranged. Mr. Blakeman felt that it appeared that what the auditor stated would be a good audit was not being done and suggested that a Request for Proposals (RFP) be issued for a general audit of the Civilian Pension Fund.

CIVILIAN PENSION BOARD MEETING OF MAY 9, 2013 PAGE 3 Mr. Blakeman moved to request to issue a Request for Proposals (RFP) to have a general audit of the Civilian Pension Fund performed, seconded by Mr. Clendaniel and carried by unanimous consent. Mrs. Mitchell questioned the benefit of this action. Mr. Blakeman stated that that he did not feel that the Pension Fund was being examined adequately, noting that there was no comment or disclaimer in the CAFR referencing Wells Fargo activities. Responding, Mrs. Mitchell explained that none of the City’s other funds were talked about in such detail and that this is addressed holistically when an audit is opined on rather than through discussion of the individual transactions that go in and out of the General Fund, Electric Fund, etc. Mr. Blakeman stated that if Mrs. Mitchell felt that the correct thing was being done and that the Civilian Pension Fund was being examined in accordance with all rules, he was “fine.” Mrs. Mitchell reassured him that she did feel that this was the case. She stated that financial reports are provided to the City by firms such as Milliman, Inc., and Wells Fargo. The auditors audit the information that is provided to the City rather than the methods used by these firms to come up with the data, and this information is included in the CAFR. Mr. Blakeman was concerned that an appropriate audit for the Civilian Pension Fund was not being done. Responding to Mr. Lynn regarding whether the Civilian Pension Fund had ever been audited, Mrs. Mitchell stated that the Fund is audited every year in the same fashion that State pension funds are audited; however, the City’s results are included in the CAFR and the State has a separate audit report. Individual mutual funds, stock certificates, etc., are not included because this is an internal audit function that is performed by the company managing funds. In response to Mr. Lynn, Mrs. Mitchell stated that she had material to review with Mr. Blakeman on this topic, had done so in the past, and had no problem with individuals approaching her to discuss this type of information. Mr. Lynn moved to table the request to issue a Request for Proposals (RFP) to have a general audit of the Civilian Pension Fund performed to allow an opportunity for Mr. Blakeman to review the information that Mrs. Mitchell had available to determine if it would satisfy his concern, seconded by Mr. Blakeman and unanimously carried. (City Clerk’s Office Note: Subsequent to the meeting, Mrs. Mitchell advised the Clerk’s Office that she and Mr. Blakeman had discussed this matter and agreed that the City’s audit includes the City’s pension funds but not outside investment firms and that Mrs. Mitchell would request the City’s auditor to attend a Civilian Pension Board Meeting to explain the audit process.) Responding to Mr. Koenig, Mrs. Mitchell stated that if approved, audit expenses would be paid from the Civilian Pension Fund.

CIVILIAN PENSION BOARD MEETING OF MAY 9, 2013 PAGE 4 Mr. Blakeman moved for adjournment, seconded by Mr. Koenig. Meeting adjourned at 2:19 p.m. David L. Bonar Chair DLB/JS/mk/dd/tm S:\AGENDAS-MINUTES-PACKETS\Misc-Minutes\PENSION\2013\05-09-2013 Civilian Pension.wpd

Quarterly Investment Monitor Summary Report for the Quarter Ending June 30, 2013 Prepared for City of Dover, Delaware General Employee Pension Plan

250 Washington Ave Ext Albany, NY 12203 USA Tel +1 518 514 7157 Fax +1 518 514 7200 MEMO milliman.com To: City of Dover, Delaware General Employee Pension Plan – Board From: Jeff Marzinsky & Kevin Abessi/Milliman Re: Investment Committee Meeting Notes – 8/8/2013 Enclosures: Milliman Quarterly Investment Monitor Report (QIM) 1. Defined Benefit Pension Plan Investment Review through 6/30/2013: a. As of 6/30/2013, assets in the plan total $30.26 million, up from $24.89 million as of 3/31/2013. During the quarter, the plan had contributions of approximately $6.8 million, withdrawals of approximately $923 thousand, and fees of $3,888.34. b. Performance of the plan portfolio, with a -2.22% net (-2.15% gross) return, was slightly below the Plan normal portfolio index performance of -2.05%. c. As of 6/30/13, The Plan’s asset allocation was affected by the contribution at quarter end. The Plan’s investment mix should revert to within the target allocation ranges set in November 2012, as the contribution has been invested. NEW Target Allocation Fund with Additional Asset NEW Asset Allocation Range Category Description Category Investment Name Classes 11/2012 Money Market CA Wells Fargo Advtg Treas Plus MMkt 4.50% 0-10%; target 5% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 0.50% 0-10%; target 5% Cash + STB Inflation Protected Bonds TIPS Vanguard Inflation Prot Sec 2.00% 0-7%; target of 2% TIPS Intermediate Term Bonds INTB Vanguard Intermediate Bond 13.00% 8-18%; target 13% INTB Long Term Bonds LTB PIMCO Long Duration 9.50% 14-24%; target 19% LTB Long Term Bonds LTB Vanguard Long Duration 9.50% 14-24%; target 19% LTB Large Cap Value LCV Vanguard Equity Income 10.00% 5-15%; target 10% LCV Large Cap Growth LCG Vanguard Morgan Growth 5.50% 6-11%; target 11% LCG Large Cap Growth LCG Vanguard Primecap 5.50% 6-11%; target 11% LCG Mid Cap MCV Vanguard Mid Cap Value Index 5.00% 0-10%; target 5% MC Small Cap SCV Target Small Cap Value 5.00% 0-10%; target 5% SC Real Estatement Investment REIT Vanguard REIT Index 5.00% 0-10%; target 5% REIT Foreign Equity GLB American Funds New Perspective 5.00% 5-15%; target 10% GLB Foreign Equity GLB Harding Loevner Global Equity 5.00% 5-15%; target 10% GLB Emerging Markets EMG Vanguard Emerging Mkts 15.00% 10-20%; target 15% Emg Mkts Offices in Principal Cities Worldwide

City of Dover General Employees Pension Plan Quarterly Return Summary CIVILIAN-NET CIVILIAN-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 4/30/2013 $ 24,878,520.74 $ - $ 296,510.79 $ 1,295.46 $ 557,583.81 $ 25,138,298.30 2.27% 2.29% 5/31/2013 $ 25,138,298.30 $ 33,855.09 $ 298,526.32 $ 1,304.49 $ (378,706.81) $ 24,493,615.77 -1.52% -1.50% 6/30/2013 $ 24,493,615.77 $ 6,821,242.89 $ 328,195.96 $ 1,288.39 $ (722,479.18) $ 30,262,895.13 -2.90% -2.88% $ 6,855,097.98 $ 923,233.07 $ 3,888.34 $ (543,602.18) Quarterly Return -2.22% -2.15% Milliman, Inc.

2. Asset Allocation Study a. Given recent interest rate trends and increased emerging market volatility, we recommend reducing long- term/intermediate bond and emerging market exposure, in favor of a more even allocation across asset classes. b. The charts below provide the risk and return assumptions of our inputs, along with two portfolio options in lieu of the current asset allocation mix. For both options, note the recommended introduction of high-yield bonds into the portfolio. Offices in Principal Cities Worldwide

Offices in Principal Cities Worldwide

3. Summary of our evaluation of High-Yield Bond managers available on the Wells Fargo platform. a. The charts below compare four high-yield bond funds on both an absolute and a risk-adjusted return basis. b. These funds generally focus of finding deep value in low-investment grade and below-investment grade issuances. As rates rise, bonds with a higher coupon may offset a price loss in a rising rate environment. Offices in Principal Cities Worldwide

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

Quarterly Investment Monitor Market Indices - 2nd Quarter 2013 3 1 3 5 Index Months Year Years Years BofAML US Treasury Bill 3 Mon 0.02 0.11 0.11 0.29 Barclays US Govt 1-3 Yr TR USD -0.11 0.34 0.86 2.06 Barclays US Govt/Credit Interm TR USD -1.70 0.28 3.14 4.57 Barclays US Government Long TR USD -5.71 -8.18 6.18 7.50 Barclays US Long Credit TR USD -6.33 -1.99 7.55 9.15 Barclays US Corporate High Yield TR USD -1.44 9.49 10.74 10.94 DJ Industrial Average TR USD 2.92 18.87 18.23 8.64 S&P 500 TR 2.91 20.60 18.45 7.01 NASDAQ 100 TR USD 3.61 12.87 20.03 10.66 NASDAQ Composite TR USD 4.52 17.60 18.64 9.38 Russell 1000 Value TR USD 3.20 25.32 18.51 6.67 Russell 1000 TR USD 2.65 21.24 18.63 7.12 Russell 1000 Growth TR USD 2.06 17.07 18.68 7.47 Russell 2000 Value TR USD 2.47 24.76 17.33 8.59 Russell 2000 TR USD 3.08 24.21 18.67 8.77 Russell 2000 Growth TR USD 3.74 23.67 19.97 8.89 FTSE NAREIT All REITs TR -3.39 9.71 17.97 7.94 MSCI EAFE NR USD -0.98 18.62 10.04 -0.63 MSCI EAFE Small Cap NR USD -2.52 20.88 11.88 2.48 MSCI EM NR USD -8.08 2.87 3.38 -0.43 City of Dover, Delaware General Employee Pension Plan 3

Quarterly Investment Monitor Broad Market Commentary - 2nd Quarter 2013 Broad Markets - Quarter Broad Markets - Five Years Apr-13 - Jun-13 Jun-08 - Jun-13 5 160 4 140 3 120 Total Return, % Growth of $100 2 100 1 80 0 60 -1 -2 40 Apr-13 - Jun-13 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Total Total Barclays US Govt/Credit Interm TR USD S&P 500 TR Barclays US Govt/Credit Interm TR USD S&P 500 TR NASDAQ Composite TR USD MSCI EAFE NR USD NASDAQ Composite TR USD MSCI EAFE NR USD Market Commentary · Despite concerns about a potential reduction of stimulus by the Federal Reserve (“the Fed”), the U.S. stock market rose modestly on improving U.S. economic data and steady growth in corporate earnings. · The international equity markets fell on worries about the recession in Europe, the prospect of reduced stimulus by the Fed, and slower growth in most emerging markets economies. · The Fed announced it would continue its securities purchases at the current rate of $85 billion per month and keep short-term interest rates low until unemployment falls below 6.5%. However, the Fed stated it could start reducing, or “tapering,” its securities purchases later this year. · As the quarter ended, mutual fund investors decreased their holdings in bonds and increased their holdings in stocks. For the quarter, bond funds had net outflows of $36.9 billion, while stock funds had net inflows of $9.9 billion. Total money market mutual fund assets decreased by $34.4 billion to $2.594 trillion. · The unemployment rate was unchanged at 7.6%, as total employment increased by 589,000 jobs. · The price of oil was unchanged at $97 per barrel. · For the three months ending June 30, 2013, annualized seasonally adjusted CPI – U was 1.0%. Rising prices for apparel drove the increase. City of Dover, Delaware General Employee Pension Plan 4

Quarterly Investment Monitor US Fixed Income Market Commentary - 2nd Quarter 2013 US Fixed Income - Quarter US Fixed Income - Five Years Apr-13 - Jun-13 Jun-08 - Jun-13 1 180 0 160 -1 140 Total Return, % Growth of $100 -2 -3 120 -4 100 -5 80 -6 60 -7 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Apr-13 - Jun-13 Total Total BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD BofAML US Treasury Bill 3 Mon Barclays US Govt 1-3 Yr TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Govt/Credit Interm TR USD Barclays US Government Long TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD Barclays US Long Credit TR USD Barclays US Corporate High Yield TR USD US Bond Market · The broad fixed income market fell 2.32% in the 2nd quarter, as the negative impact from a 0.49% rise in interest rates more than offset the coupon return of 0.80%. · The short end of the yield curve remained unchanged as the Fed maintained its near-zero interest rate policy. · Interest rates increased significantly from the 5- to the 30-year Treasury rates. · 3-month T-Bills were the best performing sector this quarter, up 0.02%, as short-term rates remained near 0%. · Long-term corporate bonds were down 5.77% due to widening spreads and rising yields on the long end of the curve. · TIPS were the worst performing sector this quarter, down 7.05%, hurt by rising yields and declining inflation expectations. City of Dover, Delaware General Employee Pension Plan 5

Quarterly Investment Monitor US Equity Market Commentary - 2nd Quarter 2013 US Equity - Quarter US Equity - Five Years Apr-13 - Jun-13 Jun-08 - Jun-13 4 160 150 140 3 130 Total Return, % Growth of $100 120 110 2 100 90 1 80 70 60 0 50 Apr-13 - Jun-13 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Total Total Russell 1000 Value TR USD Russell 1000 TR USD Russell 1000 Value TR USD Russell 1000 TR USD Russell 1000 Growth TR USD Russell 2000 Value TR USD Russell 1000 Growth TR USD Russell 2000 Value TR USD Russell 2000 TR USD Russell 2000 Growth TR USD Russell 2000 TR USD Russell 2000 Growth TR USD US Stock Market · Most major domestic equity indices posted a gain for the quarter. The small-cap Russell 2000 Growth Index had the best return, up 3.74%. · In terms of capitalization, small-cap stocks outperformed large-cap stocks. · In comparing styles, value outperformed growth in the large-cap area of the market, while growth beat value in the small-cap area. · In a reversal from last quarter, REITs fell 4.55% due to rising interest rates and the potential negative impact on the commercial real estate market. The worst performing sectors were infrastructure and industrials. · Consumer discretionary was the best performing sector, up 7.00%, with strong gains in automakers and auto-related stocks. · Materials were the worst performing sector, falling 2.22%, on lower commodity prices. City of Dover, Delaware General Employee Pension Plan 6

Quarterly Investment Monitor International Market Commentary - 2nd Quarter 2013 International - Quarter Apr-13 - Jun-13 0 International - Five Years -1 -2 Jun-08 - Jun-13 Total Return, % -3 -4 130 -5 120 -6 -7 110 -8 -9 100 Growth of $100 90 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD MSCI EM NR USD 80 Regional Performance - Quarter 70 Apr-13 - Jun-13 6 60 4 2 50 Total Return, % 0 -2 -4 40 -6 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 -8 -10 -12 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD -14 MSCI EM NR USD -16 MSCI Australia NR USD MSCI Europe Ex UK NR USD MSCI UK NR USD MSCI Pacific Ex Japan NR USD MSCI Japan NR USD MSCI EM Latin America NR USD International Markets · The dollar was down against the euro and pound, but up against the yen. · For the quarter, the EAFE Index was down 0.98%, and Emerging Markets were down 8.08%. Local currency returns for the EAFE Index and Emerging Markets were 1.21% and -4.42%, respectively. · Among the major international regions, Japanese stocks had the highest return, up 3.16%, on enthusiasm for the Bank of Japan's aggressive stimulus plans and stronger-than-expected economic data. · Stocks in Brazil had the lowest return, down 17.53%, as a result of political instability, disappointing economic growth, and lower commodity prices. · Small-cap stocks, down 2.5%, underperformed large-cap stocks. City of Dover, Delaware General Employee Pension Plan 7

Quarterly Investment Monitor Data as of 06/30/2013 Performance Summary City of Dover, Delaware General Employee Pension Plan 8

Quarterly Investment Monitor Data as of 06/30/2013 Asset Allocation Balances As of Percent As of Balances As of Percent As of Notes 06/30/2013 06/30/2013 03/31/2013 03/31/2013 Wells Fargo Advantage Treas Plus MMkt I $7,025,207 23.21% $1,097,215 4.41% PISXX Vanguard Short-Term Bond Index Signal $123,198 0.41% $124,115 0.50% VBSSX Vanguard Inflation-Protected Secs I $462,364 1.53% $499,046 2.00% VIPIX Vanguard Interm-Term Bond Index Signal $3,123,700 10.32% $3,251,938 13.06% VIBSX Vanguard Long-Term Bond Index I $2,238,882 7.40% $2,387,624 9.59% VBLLX PIMCO Long Duration Total Return Instl $2,217,763 7.33% $2,377,812 9.55% PLRIX Vanguard Equity-Income Adm $2,588,886 8.55% $2,499,161 10.04% VEIRX Vanguard Morgan Growth Adm $1,409,124 4.66% $1,368,625 5.50% VMRAX Vanguard PRIMECAP Inv $1,430,708 4.73% $1,386,408 5.57% VPMCX Vanguard Mid-Cap Value Index Admiral $1,283,352 4.24% $1,255,241 5.04% VMVAX Target Small Capitalization Value T $1,287,543 4.25% $1,256,228 5.05% TASVX American Funds New Perspective R6 $1,249,598 4.13% $1,228,883 4.94% RNPGX Harding Loevner Global Equity Inst $1,229,166 4.06% $1,241,999 4.99% HLMVX Vanguard Emerging Mkts Stock Idx I $3,354,061 11.08% $3,660,413 14.70% VEMIX Vanguard REIT Index I $1,239,301 4.10% $1,260,078 5.06% VGSNX Plan Total $30,262,853 $24,894,786 City of Dover, Delaware General Employee Pension Plan 9

Quarterly Investment Monitor Data as of 06/30/2013 Investment Policy Review - Active Management Return Return Excess Excess Relative Relative Alpha Sharpe Alpha Sharpe Fund Rank Rank Return Return StdDev StdDev Rank Rank Rank Rank Name 3Y 5Y 3Y 5Y 3Y 5Y 3Y 3Y 5Y 5Y Vanguard Inflation-Protected Secs I 17 42 -0.15 -0.32 1.02 1.01 31 28 57 47 PIMCO Long Duration Total Return Instl 38 25 -0.09 1.12 0.94 0.97 75 75 75 56 Vanguard Equity-Income Adm 6 6 2.58 2.77 0.79 0.83 3 2 4 4 Vanguard Morgan Growth Adm 41 50 -1.81 -1.96 1.23 1.15 61 55 55 52 Vanguard PRIMECAP Inv 14 26 0.00 -0.39 1.10 1.09 10 10 25 24 Target Small Capitalization Value T 61 33 -2.63 -0.62 0.93 0.90 23 24 23 22 American Funds New Perspective R6 25 21 2.41 2.97 0.95 0.93 27 22 24 20 Harding Loevner Global Equity Inst 64 31 -0.74 1.78 0.96 0.94 59 60 34 32 Definitions Return Rank - Fund's category percentile return rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Relative StdDev - Fund's standard deviation relative to its benchmark, a value less than 1 implies the fund's standard deviation is lower than its benchmark. Alpha Rank - Fund's category percentile Alpha rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Sharpe Rank - Fund's category percentile Sharpe Ratio rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. City of Dover, Delaware General Employee Pension Plan 10

Quarterly Investment Monitor Data as of 06/30/2013 Investment Policy Review - Passive Management Excess Excess Tracking Tracking Fund Beta Beta Expense Return Return Error Error Name 3Y 5Y Ratio 3Y 5Y 3Y 5Y Vanguard Short-Term Bond Index Signal 0.60 0.82 2.06 0.77 1.63 0.91 0.10 Vanguard Interm-Term Bond Index Signal 0.78 0.84 0.85 1.97 0.83 3.52 0.10 Vanguard Long-Term Bond Index I -0.05 0.00 1.02 0.87 1.01 0.82 0.07 Vanguard Mid-Cap Value Index Admiral -0.89 2.04 0.96 2.38 1.00 3.62 0.10 Vanguard Emerging Mkts Stock Idx I 0.28 -0.52 1.02 3.46 1.01 3.39 0.12 Vanguard REIT Index I 1.27 1.95 1.00 0.21 0.99 0.54 0.08 Definitions Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Beta - Fund's Beta or sensitivity to movements compared to its benchmark, a value of 1 implies its moving in sync with its benchmark. Tracking Error - Fund's Tracking Error versus its benchmark, a value of 0 implies the Fund's ups and downs are the same size as its benchmark. City of Dover, Delaware General Employee Pension Plan 11

Quarterly Investment Monitor Data as of 06/30/2013 Investment Option Return Summary Asset Fund 3 1 3 5 10 Mstar Expense YTD Ticker Class Name Months Year Years Years Years Rating Ratio Taxable Money Market Wells Fargo Advantage Treas Plus MMkt I 0.00 0.00 0.01 0.01 0.11 1.56 PISXX NA 0.20 BofA ML 3-month T-bill total return Index 0.02 0.04 0.11 0.11 0.29 1.72 N/A NA NA Short-term Bond Vanguard Short-Term Bond Index Signal (0.74) (0.53) 0.46 1.85 3.29 3.31 VBSSX 3.00 0.10 Barclays US Govt/Credit 1-3 Yr TR USD (0.12) 0.07 0.74 1.25 2.47 2.92 N/A NA NA Inflation-Protected Bond Vanguard Inflation-Protected Secs I (7.35) (7.58) (5.03) 4.48 4.09 5.03 VIPIX 3.00 0.07 Barclays US Treasury US TIPS TR USD (7.05) (7.39) (4.78) 4.63 4.41 5.19 N/A NA NA Intermediate-term Bond Vanguard Interm-Term Bond Index Signal (3.94) (3.62) (0.79) 5.11 6.81 5.25 VIBSX 4.00 0.10 Barclays US Govt 5-10 Yr TR USD (3.56) (3.45) (2.47) 4.33 5.97 4.99 N/A NA NA Long-term Bond Vanguard Long-Term Bond Index I (6.23) (7.70) (4.66) 6.96 8.50 6.25 VBLLX 3.00 0.07 Long-term Bond PIMCO Long Duration Total Return Instl (6.74) (7.77) (4.34) 6.92 9.62 NA PLRIX 4.00 0.50 BC Long Government/Credit (6.11) (7.97) (4.69) 7.01 8.50 6.21 N/A NA NA Large Value Vanguard Equity-Income Adm 3.59 15.27 21.77 20.68 9.25 8.85 VEIRX 5.00 0.21 S&P 500 Value 3.36 15.73 25.04 18.10 6.47 7.61 N/A NA NA Large Growth Vanguard Morgan Growth Adm 2.94 12.24 17.47 17.08 5.61 7.66 VMRAX 4.00 0.26 Large Growth Vanguard PRIMECAP Inv 3.19 17.80 27.49 18.89 7.18 10.08 VPMCX 4.00 0.45 S&P 500 Growth 2.48 12.04 16.78 18.89 7.57 6.95 N/A NA NA Mid-Cap Value Vanguard Mid-Cap Value Index Admiral 2.24 16.90 27.47 18.52 9.75 NA VMVAX 3.00 0.10 CRSP US Mid Cap TR USD 2.40 15.62 24.81 19.42 7.71 10.32 N/A NA NA Small Value Target Small Capitalization Value T 2.49 15.17 25.49 17.64 9.32 11.93 TASVX 4.00 0.68 S&P 600 Index 3.92 16.19 25.18 20.27 9.95 10.77 N/A NA NA World Stock American Funds New Perspective R6 1.69 8.10 19.95 14.77 5.27 9.95 RNPGX 4.00 0.46 World Stock Harding Loevner Global Equity Inst (1.03) 3.63 10.77 11.62 4.08 8.61 HLMVX 3.00 0.95 MSCI AC World Index ND USD (0.42) 6.05 16.57 12.36 2.30 7.59 N/A NA NA Diversified Emerging Mkts Vanguard Emerging Mkts Stock Idx I (8.44) (10.79) 1.52 3.31 (0.63) 13.43 VEMIX 3.00 0.12 FTSE Emerging NR USD (7.70) (9.17) 3.29 3.03 (0.11) 14.10 N/A NA NA Real Estate Vanguard REIT Index I (1.65) 6.33 8.94 18.23 8.13 10.99 VGSNX 3.00 0.08 MSCI US REIT NR USD (1.88) 5.77 7.79 16.96 6.18 NA N/A NA NA Total Plan CIVILIAN-GROSS RETURN (2.15) 1.84 7.78 9.08 5.00 NA N/A NA NA Total Plan CIVILIAN-NET RETURN (2.22) 1.70 7.48 8.68 4.58 NA N/A NA NA Employee Plan Policy Index (2.05) 1.62 8.04 10.34 4.68 6.29 N/A NA NA City of Dover, Delaware General Employee Pension Plan 12

Quarterly Investment Monitor Data as of 06/30/2013 U.S. Fixed Income Style Map 36 Month moving average, Jul-08 - Jun-13 BC Government BC Credit Bond BC Municipal Bond BC High Yield Corporate Bond BC Mortgage Backed Securities Barcap US Fixed Income Vanguard Short-Term Bond Index Signal Vanguard Inflation-Protected Secs I Vanguard Interm-Term Bond Index Signal Vanguard Long-Term Bond Index I PIMCO Long Duration Total Return Instl City of Dover, Delaware General Employee Pension Plan 13

Quarterly Investment Monitor Data as of 06/30/2013 U.S. Equity Style Map 36 Month moving average, Jul-08 - Jun-13 LgValue LgGrowth Small - Large MidValue MidGrowth SmValue SmGrowth Value - Growth S&P/BARRA Style Indices Vanguard Equity-Income Adm Vanguard Morgan Growth Adm Vanguard PRIMECAP Inv Vanguard Mid-Cap Value Index Admiral Target Small Capitalization Value T Vanguard REIT Index I City of Dover, Delaware General Employee Pension Plan 14

Quarterly Investment Monitor Data as of 06/30/2013 International Equity Style Map 36 Month moving average, Jul-08 - Jun-13 Europe Large Asia Pacific Large Small - Large Europe Small Asia Pacific Small European Emerging Asia Pacific Emerging Europe - Asia SBI Equity Indices American Funds New Perspective R6 Harding Loevner Global Equity Inst Vanguard Emerging Mkts Stock Idx I City of Dover, Delaware General Employee Pension Plan 15

Quarterly Investment Monitor Data as of 06/30/2013 Core Fund Review City of Dover, Delaware General Employee Pension Plan 16

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Short-Term Bond Index Signal 2.91 Portfolio Information Investment Strategy Summary 9.83 % 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 10214.38 % Pref Government/Credit Float Adjusted Index. It invests by sampling the index. The fund invests Net Assets $MM 30233.42 % Conv at least 80% of assets in bonds held in the index. It maintains a dollar-weighted average Turnover Ratio 51.00 maturity consistent with that of the index, which generally does not exceed 3 years. % Other % Assets in Top 10 Holdings 14.60 % Non-US Bonds Total Number of Holdings 1596.00 _________________________________________________________________________ Manager Name Joshua C. Barrickman Manager Tenure 0.35 87.22 Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States NA % Cash 2.91 6 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.22 5 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.04 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 9.83 % Rank Cat 3 Yr 56 3 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 41 2 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 29 % Asia - Emerging NA 1 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials NA Avg Eff Duration 2.70 2 300 -1 % Communication Services NA Effective Maturity 2.80 % Consumer Cyclical NA Avg Credit Quality AA -2 % Consumer Defensive NA US Govt/ Agency NA % Healthcare NA AAA 74.04 250 % Industrials NA AA 6.01 -3 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 11.53 % Technology NA BBB 8.42 200 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile % Utilities NA Below B 0.00 Ratio Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD NR/NA 0.00 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 0.25% 2.49% 100 Vanguard Short-Term Bond Index Signal -0.74 -0.53 0.46 1.85 3.29 US Treasury Note 2.25% 1.50% Barclays US Govt/Credit 1-3 Yr TR USD -0.12 0.07 0.74 1.25 2.47 US Treasury Note 2.625% 1.42% Universe(5%) -0.19 0.82 4.67 4.32 5.67 US Treasury Note 2.5% 1.42% Universe(25%) -0.44 -0.09 2.13 2.73 4.08 50 US Treasury Note 0.75% 1.36% Universe(Median) -0.76 -0.32 1.30 2.17 3.16 US Treasury Note 0.625% 1.32% Universe(75%) -1.08 -0.69 0.46 1.54 2.46 US Treasury Note 1.75% 1.31% Universe(95%) -2.19 -2.12 -0.44 0.68 0.86 US Treasury Note 0.625% 1.27% 0 0 US Treasury Note 2.375% 1.27% Prospectus Exp Ratio Turnover Ratio US Treasury Note 2.25% 1.24% City of Dover, Delaware General Employee Pension Plan 17

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Short-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 -5 100 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -10 Up/Down Market Capture Ratio -15 Jul-10 - Jun-13 600 -20 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 500 Up Mkt Capture Ratio, % Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 400 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 300 Vanguard Short-Term Bond Index Signal 3.37 1.70 1.31 4.09 7.28 5.51 4.38 4.03 3.08 2.05 Barclays US Govt/Credit 1-3 Yr TR USD 2.81 1.30 1.77 4.25 6.83 4.97 3.82 2.80 1.59 1.26 200 100 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 2 3 3 3 0 -200 -100 0 100 200 300 400 500 600 Down Mkt Capture Ratio, % Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Excess Annualized StdDev, % 1 Total Annualized StdDev, % 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD Sharpe Ratio Alpha, % 0 Return vs. Risk 1 1 1 Jul-10 - Jun-13 -1 9 8 Total Annualized Return, % 7 -2 0 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 4 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 -0.61 2.06 89.59 1.31 1.32 0.77 1 Barclays US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 1.87 0.61 0.00 0 Universe(5%) 1.73 3.23 86.89 2.46 2.81 2.62 -1 0 1 2 3 4 Universe(25%) 0.57 2.11 74.27 1.77 1.92 1.54 Universe(Median) -0.03 1.63 63.68 1.45 1.34 0.97 Total Annualized StdDev, % Universe(75%) -0.38 1.37 47.16 1.13 1.03 0.65 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Universe(95%) -1.15 0.85 20.42 0.57 0.71 0.32 Cash Barclays US Govt/Credit 1-3 Yr TR USD City of Dover, Delaware General Employee Pension Plan 18

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Inflation-Protected Secs I 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 12027.54 % Pref may invest in bonds of any maturity; however, its dollar-weighted average maturity is Net Assets $MM 35209.45 % Conv expected to be in the range of 7 to 20 years. At a minimum, all bonds purchased by the fund Turnover Ratio 33.00 will be rated investment-grade or, if unrated, will be considered by the advisor to be % Other % Assets in Top 10 Holdings 46.86 investment-grade. % Non-US Bonds Total Number of Holdings 37.00 Manager Name Gemma Wright-Casparius _________________________________________________________________________ Manager Tenure 1.87 99.95 Fund Incept Date 06/29/2000 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States NA % Cash 0.05 6 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 99.95 % 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 2 % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 0.00 % Rank Cat 3 Yr 9 % Middle East NA 5 Year Mstar Rating 0 % Japan NA % Rank Cat 5 Yr 32 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 20 -2 % Asia - Emerging NA -4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -6 % Basic Materials NA Avg Eff Duration 8.31 1.0 300 % Communication Services NA Effective Maturity 9.40 % Consumer Cyclical NA Avg Credit Quality Government 0.9 -8 % Consumer Defensive NA US Govt/ Agency NA % Healthcare NA AAA 100.00 250 0.8 % Industrials NA AA 0.00 -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 0.00 % Technology NA BBB 0.00 0.7 200 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 0.6 Median to 75th Percentile 75th to 95th Percentile % Utilities NA Below B 0.00 Ratio Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD NR/NA 0.00 0.5 150 Turnover 0.4 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 5.65% 100 0.3 Vanguard Inflation-Protected Secs I -7.35 -7.58 -5.03 4.48 4.09 US Treasury Note 5.26% Barclays US Treasury US TIPS TR USD -7.05 -7.39 -4.78 4.63 4.41 US Treasury Note 5.20% Universe(5%) -4.89 -4.69 -2.49 4.85 4.83 US Treasury Note 0.125% 4.98% 0.2 50 Universe(25%) -6.65 -7.15 -4.57 4.35 4.30 US Treasury Note 4.88% Universe(Median) -7.12 -7.55 -5.10 4.17 4.00 US Treasury Note 1.125% 4.65% 0.1 Universe(75%) -7.62 -7.98 -5.35 3.80 3.52 US Treasury Note 0.5% 4.43% Universe(95%) -8.94 -9.61 -7.92 2.72 2.44 US Treasury Note 1.25% 4.11% 0.0 0 US Treasury Bond 2.375% 4.09% Prospectus Exp Ratio Turnover Ratio US Treasury Bond 3.875% 3.62% City of Dover, Delaware General Employee Pension Plan 19

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Inflation-Protected Secs I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 100 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -5 Up/Down Market Capture Ratio -10 Jul-10 - Jun-13 200 -15 180 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 160 Up Mkt Capture Ratio, % Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 140 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 Vanguard Inflation-Protected Secs I 8.00 8.25 2.78 0.46 11.82 -2.81 11.03 6.33 13.39 6.87 Barclays US Treasury US TIPS TR USD 8.40 8.46 2.84 0.41 11.64 -2.35 11.41 6.31 13.56 6.98 80 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 1 0.9 7 4 0 0 20 40 60 80 100 120 140 160 180 200 0.8 Down Mkt Capture Ratio, % 6 0.7 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Excess Annualized StdDev, % 3 Total Annualized StdDev, % 5 0 0.6 Barclays US Treasury US TIPS TR USD Sharpe Ratio 4 Alpha, % 0.5 2 0.4 3 Return vs. Risk -1 0.3 Jul-10 - Jun-13 2 1 8 0.2 1 7 0.1 Total Annualized Return, % 6 -2 0.0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 Vanguard Inflation-Protected Secs I -0.19 1.01 99.28 0.78 5.68 0.49 1 Barclays US Treasury US TIPS TR USD 0.00 1.00 100.00 0.82 5.59 0.00 Universe(5%) 0.65 1.07 99.57 0.88 6.13 3.94 0 0 1 2 3 4 5 6 7 8 9 10 11 Universe(25%) -0.12 1.01 99.29 0.79 5.65 1.36 Universe(Median) -0.43 0.98 98.81 0.73 5.52 0.67 Total Annualized StdDev, % Universe(75%) -0.62 0.93 95.18 0.70 5.33 0.48 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Universe(95%) -1.33 0.61 69.96 0.51 4.18 0.37 Cash Barclays US Treasury US TIPS TR USD City of Dover, Delaware General Employee Pension Plan 20

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Interm-Term Bond Index Signal Portfolio Information Investment Strategy Summary 12.03 % Cash Ticker VIBSX % US Stocks The investment seeks to track the performance of a market-weighted bond index with an Morningstar Category Intermediate-term Bond % Bonds intermediate-term dollar-weighted average maturity. The fund employs an indexing Avg Mkt Cap $MM NA % Non-US Stocks investment approach designed to track the performance of the Barclays U.S. 5-10 Year Cat Med Mkt Cap $MM 14591.63 % Pref Government/Credit Float Adjusted Index. This index includes all medium and larger issues of Net Assets $MM 16746.84 % Conv U.S. government, investment-grade corporate, and investment-grade international Turnover Ratio 65.00 dollar-denominated bonds that have maturities between 5 and 10 years and are publicly % Other % Assets in Top 10 Holdings 26.02 issued. All of its investments will be selected through the sampling process, and at least 80% % Non-US Bonds Total Number of Holdings 1473.00 of its assets will be invested in bonds held in the index. Manager Name Joshua C. Barrickman 87.63 Manager Tenure 5.18 _________________________________________________________________________ Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States NA % Cash 0.30 7 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.63 6 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.00 Portfolio Ratings 5 Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.04 3 Year Mstar Rating 4 % Africa NA % Non-US Bonds 12.03 % Rank Cat 3 Yr 23 % Middle East NA 5 Year Mstar Rating 3 % Japan NA % Rank Cat 5 Yr 18 % Australasia NA 10 Year Mstar Rating 2 % Asia - Developed NA % Rank Cat 10 Yr 19 % Asia - Emerging NA 1 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -1 % Basic Materials NA Avg Eff Duration 6.53 350 % Communication Services NA Effective Maturity 7.30 -2 % Consumer Cyclical NA Avg Credit Quality A % Consumer Defensive NA US Govt/ Agency NA 300 -3 % Healthcare NA AAA 52.78 0.5 % Industrials NA AA 5.36 -4 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 20.15 250 % Technology NA BBB 21.71 0.4 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio 200 % Utilities NA Below B 0.00 Vanguard Interm-Term Bond Index Signal Barclays US Govt 5-10 Yr TR USD NR/NA 0.00 0.3 Turnover 150 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 3.625% 3.17% 0.2 Vanguard Interm-Term Bond Index Signal -3.94 -3.62 -0.79 5.11 6.81 US Treasury Note 3.5% 3.11% 100 Barclays US Govt 5-10 Yr TR USD -3.56 -3.45 -2.47 4.33 5.97 US Treasury Note 2% 3.11% Universe(5%) -2.40 -2.47 -0.69 3.97 5.76 US Treasury Note 3.625% 2.98% Universe(25%) -2.43 -2.59 -0.94 3.29 5.15 0.1 US Treasury Note 3.125% 2.64% 50 Universe(Median) -2.46 -2.63 -1.05 3.26 4.94 US Treasury Note 3.375% 2.47% Universe(75%) -2.52 -2.70 -1.08 3.12 4.84 US Treasury Note 2.625% 2.28% Universe(95%) -3.09 -3.07 -1.15 3.01 4.25 US Treasury Note 3.625% 2.23% 0.0 0 US Treasury Note 2.625% 2.00% Prospectus Exp Ratio Turnover Ratio US Treasury Note 3.75% 2.00% City of Dover, Delaware General Employee Pension Plan 21

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Interm-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 16 0 14 25 Total Return Rank, % 12 10 50 Total Return, % 8 75 6 4 100 2 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 0 Up/Down Market Capture Ratio -2 Jul-10 - Jun-13 100 -4 90 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 80 Up Mkt Capture Ratio, % Vanguard Interm-Term Bond Index Signal Barclays US Govt 5-10 Yr TR USD 70 60 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 50 Vanguard Interm-Term Bond Index Signal 5.65 5.22 1.75 3.91 7.66 5.01 6.89 9.48 10.73 7.02 Barclays US Govt 5-10 Yr TR USD 2.48 4.50 2.25 3.33 9.84 15.38 -3.55 8.62 12.98 3.72 40 30 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 10 2 2 6 3 0 0 10 20 30 40 50 60 70 80 90 100 Down Mkt Capture Ratio, % 5 Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Total Annualized StdDev, % Excess Annualized StdDev, % 4 2 Barclays US Govt 5-10 Yr TR USD Sharpe Ratio Alpha, % 1 1 3 Return vs. Risk 2 1 Jul-10 - Jun-13 6 1 5 Total Annualized Return, % 0 0 0 0 4 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Interm-Term Bond Index Signal Barclays US Govt 5-10 Yr TR USD 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 2 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Interm-Term Bond Index Signal 1.38 0.85 85.04 1.07 4.66 1.97 1 Barclays US Govt 5-10 Yr TR USD 0.00 1.00 100.00 0.84 5.08 0.00 Universe(5%) 1.20 0.65 88.58 1.12 3.54 2.74 0 0 1 2 3 4 5 6 Universe(25%) 0.93 0.53 86.66 1.10 2.91 2.68 Universe(Median) 0.88 0.52 85.71 1.08 2.88 2.66 Total Annualized StdDev, % Universe(75%) 0.77 0.52 84.50 1.04 2.85 2.61 Morningstar IntermTerm Bond Index Universe Vanguard Interm-Term Bond Index Signal Universe(95%) 0.66 0.51 82.13 1.01 2.83 2.31 Cash Barclays US Govt 5-10 Yr TR USD City of Dover, Delaware General Employee Pension Plan 22

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Long-Term Bond Index I Portfolio Information Investment Strategy Summary 12.14 % 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 31063.26 % Pref Float Adjusted Index. It invests at least 80% of assets in bonds held in the index. The fund Net Assets $MM 6038.42 % Conv maintains a dollar-weighted average maturity consistent with that of the index, which Turnover Ratio 41.00 generally ranges between 15 and 30 years. % Other % Assets in Top 10 Holdings 20.40 % Non-US Bonds Total Number of Holdings 1484.00 _________________________________________________________________________ Manager Name Joshua C. Barrickman 87.49 Manager Tenure 0.35 Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.07 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States NA % Cash 0.32 12 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 87.49 10 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.04 Portfolio Ratings 8 Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 6 % Africa NA % Non-US Bonds 12.14 % Rank Cat 3 Yr 70 % Middle East NA 5 Year Mstar Rating 4 % Japan NA % Rank Cat 5 Yr 67 % Australasia NA 10 Year Mstar Rating 2 % Asia - Developed NA % Rank Cat 10 Yr 47 % Asia - Emerging NA 0 -2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -4 % Basic Materials NA Avg Eff Duration 14.71 2 400 % Communication Services NA Effective Maturity 24.20 -6 % Consumer Cyclical NA Avg Credit Quality A % Consumer Defensive NA US Govt/ Agency NA 350 -8 % Healthcare NA AAA 41.60 % Industrials NA AA 7.69 -10 300 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 25.16 % Technology NA BBB 25.55 % Energy NA BB 0.00 250 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile % Utilities NA Below B 0.00 Ratio Vanguard Long-Term Bond Index I BC Long Government/Credit NR/NA 0.00 1 200 Turnover 3 Year to 1 3 5 Top Ten Holdings 150 Performance Months Date Year Years Years US Treasury Bond 4.375% 2.63% Vanguard Long-Term Bond Index I -6.23 -7.70 -4.66 6.96 8.50 US Treasury Bond 4.25% 2.52% BC Long Government/Credit -6.11 -7.97 -4.69 7.01 8.50 100 US Treasury Bond 2.75% 2.02% Universe(5%) -0.89 0.32 7.15 10.76 11.39 US Treasury Bond 4.375% 2.00% Universe(25%) -2.80 -2.56 2.06 7.71 9.62 US Treasury Bond 4.375% 2.00% Universe(Median) -4.16 -4.29 -0.56 6.35 8.22 50 US Treasury Bond 4.75% 1.96% Universe(75%) -6.17 -6.75 -1.80 5.87 5.44 US Treasury Bond 3% 1.87% Universe(95%) -7.05 -8.69 -6.88 1.83 3.48 US Treasury Bond 4.625% 1.82% 0 0 US Treasury Bond 2.75% 1.82% Prospectus Exp Ratio Turnover Ratio US Treasury Bond 3.125% 1.75% City of Dover, Delaware General Employee Pension Plan 23

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Long-Term Bond Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 40 0 30 25 Total Return Rank, % 20 50 Total Return, % 10 75 0 100 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -10 Up/Down Market Capture Ratio -20 Jul-10 - Jun-13 250 -30 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Long-Term Bond Index I BC Long Government/Credit 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Long-Term Bond Index I 5.50 8.40 5.32 2.75 6.71 8.77 1.91 10.43 22.23 8.63 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 8 2 14 14 0 -100 -50 0 50 100 150 200 250 7 12 12 Down Mkt Capture Ratio, % 6 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Total Annualized StdDev, % Excess Annualized StdDev, % 5 10 10 BC Long Government/Credit 4 Sharpe Ratio 8 8 Alpha, % 3 1 2 6 6 Return vs. Risk 1 Jul-10 - Jun-13 0 4 4 14 -1 2 2 12 Total Annualized Return, % -2 -3 0 0 0 10 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 8 Vanguard Long-Term Bond Index I BC Long Government/Credit 6 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 4 Vanguard Long-Term Bond Index I -0.16 1.02 99.27 0.72 9.91 0.87 2 BC Long Government/Credit 0.00 1.00 100.00 0.74 9.69 0.00 Universe(5%) 7.95 1.29 95.61 1.95 13.07 13.80 0 0 5 10 15 20 25 30 Universe(25%) 4.54 0.75 80.60 1.24 8.16 9.16 Universe(Median) 2.43 0.38 62.15 0.97 5.99 7.03 Total Annualized StdDev, % Universe(75%) 0.50 0.19 42.21 0.77 4.97 5.37 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Universe(95%) -2.04 0.04 2.44 0.42 2.21 1.98 Cash BC Long Government/Credit City of Dover, Delaware General Employee Pension Plan 24

Quarterly Investment Monitor Data as of 06/30/2013 PIMCO Long Duration Total Return Instl 7.39 Portfolio Information Investment Strategy Summary 13.58 % Cash Ticker PLRIX % US Stocks The investment seeks maximum total return, consistent with prudent investment Morningstar Category Long-term Bond % Bonds management. The fund invests at least 65% of its total assets in a diversified portfolio of 1.04 Avg Mkt Cap $MM 57310.84 % Non-US Stocks Fixed Income Instruments of varying maturities, which may be represented by forwards or Cat Med Mkt Cap $MM 31063.26 % Pref derivatives such as options, futures contracts or swap agreements. It invests primarily in Net Assets $MM 6071.40 % Conv investment grade debt securities, but may invest up to 10% of its total assets in high yield Turnover Ratio 81.00 securities ("junk bonds") that are rated B or higher by Moody's, or equivalently rated by S&P % Other % Assets in Top 10 Holdings 28.21 or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. % Non-US Bonds Total Number of Holdings 882.00 Manager Name Stephen A. Rodosky _________________________________________________________________________ Manager Tenure 5.92 77.71 Fund Incept Date 08/31/2006 Prospectus Exp Ratio 0.50 Phone Number 888-877-4626 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 100.00 % Cash 7.39 12 % Canada 0.00 % US Stocks 0.00 % Latin America 0.00 % Bonds 77.71 10 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.28 Portfolio Ratings 8 Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 1.04 3 Year Mstar Rating 6 % Africa 0.00 % Non-US Bonds 13.58 % Rank Cat 3 Yr 71 % Middle East 0.00 5 Year Mstar Rating 4 % Japan 0.00 % Rank Cat 5 Yr 44 % Australasia 0.00 10 Year Mstar Rating NA 2 % Asia - Developed 0.00 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 0 -2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -4 % Basic Materials 0.00 Avg Eff Duration 13.92 2 400 % Communication Services 0.00 Effective Maturity 21.95 -6 % Consumer Cyclical 0.00 Avg Credit Quality NA % Consumer Defensive 0.00 US Govt/ Agency NA 350 -8 % Healthcare 0.00 AAA NA % Industrials 0.00 AA NA -10 300 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 A NA % Technology 0.00 BBB NA % Energy 0.00 BB NA 250 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 100.00 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 Below B NA Ratio PIMCO Long Duration Total Return Instl BC Long Government/Credit NR/NA NA 1 200 Turnover 3 Year to 1 3 5 Top Ten Holdings 150 Performance Months Date Year Years Years US Treasury Bond 5.25% 5.43% PIMCO Long Duration Total Return Instl -6.74 -7.77 -4.34 6.92 9.62 US Treasury Bond 3.125% 4.75% BC Long Government/Credit -6.11 -7.97 -4.69 7.01 8.50 100 US Treasury Bond 6% 3.79% Universe(5%) -0.89 0.32 7.15 10.76 11.39 US Treasury Bond 5.375% 3.29% Universe(25%) -2.80 -2.56 2.06 7.71 9.62 US Treasury Bond 4.25% 2.61% Universe(Median) -4.16 -4.29 -0.56 6.35 8.22 50 US Treasury Bond 3.125% 2.34% Universe(75%) -6.17 -6.75 -1.80 5.87 5.44 US Treasury Bond 4.5% 1.57% Universe(95%) -7.05 -8.69 -6.88 1.83 3.48 U S Treas Bd Stripped Prin Pmt 1.55% 0 0 Quebec Prov Cda 5.75% 1.47% Prospectus Exp Ratio Turnover Ratio Resolution Fdg Fed Bk Prin Stp 1.40% City of Dover, Delaware General Employee Pension Plan 25

Quarterly Investment Monitor Data as of 06/30/2013 PIMCO Long Duration Total Return Instl Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 40 0 30 25 Total Return Rank, % 20 50 Total Return, % 10 75 0 100 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -10 Up/Down Market Capture Ratio -20 Jul-10 - Jun-13 250 -30 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % PIMCO Long Duration Total Return Instl BC Long Government/Credit 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 PIMCO Long Duration Total Return Instl NA NA NA NA 7.83 12.38 5.62 11.64 18.57 10.28 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 8 2 14 14 0 -100 -50 0 50 100 150 200 250 7 12 12 Down Mkt Capture Ratio, % 6 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Total Annualized StdDev, % Excess Annualized StdDev, % 5 10 10 BC Long Government/Credit 4 Sharpe Ratio 8 8 Alpha, % 3 1 2 6 6 Return vs. Risk 1 Jul-10 - Jun-13 0 4 4 14 -1 2 2 12 Total Annualized Return, % -2 -3 0 0 0 10 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 8 PIMCO Long Duration Total Return Instl BC Long Government/Credit 6 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 4 PIMCO Long Duration Total Return Instl 0.50 0.91 94.69 0.77 9.07 2.26 2 BC Long Government/Credit 0.00 1.00 100.00 0.74 9.69 0.00 Universe(5%) 7.95 1.29 95.61 1.95 13.07 13.80 0 0 5 10 15 20 25 30 Universe(25%) 4.54 0.75 80.60 1.24 8.16 9.16 Universe(Median) 2.43 0.38 62.15 0.97 5.99 7.03 Total Annualized StdDev, % Universe(75%) 0.50 0.19 42.21 0.77 4.97 5.37 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Universe(95%) -2.04 0.04 2.44 0.42 2.21 1.98 Cash BC Long Government/Credit City of Dover, Delaware General Employee Pension Plan 26

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Equity-Income Adm 3.29 Portfolio Information Investment Strategy Summary 10.08 % Cash Ticker VEIRX % US Stocks The investment seeks to provide an above-average level of current income and reasonable Morningstar Category Large Value % Bonds long-term capital appreciation. The fund invests mainly in common stocks of mid-size and Avg Mkt Cap $MM 68269.05 % Non-US Stocks large companies whose stocks pay above-average levels of dividend income and are Cat Med Mkt Cap $MM 45416.87 % Pref considered to have the potential for capital appreciation. In addition, the advisors generally Net Assets $MM 12589.52 % Conv look for companies that they believe are committed to paying dividends consistently. Under Turnover Ratio 26.00 normal circumstances, it will invest at least 80% of its assets in equity securities. The fund % Other % Assets in Top 10 Holdings 30.61 uses multiple investment advisors. % Non-US Bonds Total Number of Holdings 164.00 Manager Name James P. Stetler _________________________________________________________________________ Manager Tenure 9.50 85.65 Fund Incept Date 03/21/1988 Prospectus Exp Ratio 0.21 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 89.47 % Cash 3.29 35 % Canada 0.59 % US Stocks 85.65 % Latin America 0.00 % Bonds 0.00 % United Kingdom 4.18 % Non-US Stocks 10.08 30 % Eurozone 3.06 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 2.70 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.98 3 Year Mstar Rating 25 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 4 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 5 20 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 8 % Asia - Emerging 0.00 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 10 % Basic Materials 2.47 Avg Eff Duration NA 2 180 % Communication Services 5.08 Effective Maturity NA % Consumer Cyclical 8.32 Avg Credit Quality NA 5 160 % Consumer Defensive 13.85 US Govt/ Agency NA % Healthcare 13.33 AAA NA % Industrials 12.53 AA NA 140 0 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.02 A NA % Technology 10.71 BBB NA 120 % Energy 12.55 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 14.22 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 6.93 Below B NA Ratio 100 Vanguard Equity-Income Adm S&P 500 Value NR/NA NA 1 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Exxon Mobil Corporation 4.11% 60 Vanguard Equity-Income Adm 3.59 15.27 21.77 20.68 9.25 Johnson & Johnson 3.89% S&P 500 Value 3.36 15.73 25.04 18.10 6.47 Chevron Corp 3.86% 40 Universe(5%) 5.55 18.77 32.00 20.75 9.41 Pfizer Inc 2.87% Universe(25%) 4.25 16.72 26.06 18.42 7.46 JPMorgan Chase & Co 2.80% Universe(Median) 3.57 15.36 23.81 17.27 6.53 AT&T Inc 2.80% 20 Universe(75%) 2.60 14.07 21.00 15.99 4.92 Merck & Co Inc 2.76% Universe(95%) 0.87 10.81 15.12 12.99 2.84 General Electric Co 2.73% 0 0 Wells Fargo & Co 2.49% Prospectus Exp Ratio Turnover Ratio Philip Morris International, Inc. 2.31% City of Dover, Delaware General Employee Pension Plan 27

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Equity-Income Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -30 Up/Down Market Capture Ratio -40 Jul-10 - Jun-13 200 -50 180 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 160 Up Mkt Capture Ratio, % Vanguard Equity-Income Adm S&P 500 Value 140 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 Vanguard Equity-Income Adm 25.24 13.69 4.52 20.77 4.99 -30.86 17.26 14.99 10.69 13.58 S&P 500 Value 30.36 15.03 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 80 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 7 2 18 7 0 0 20 40 60 80 100 120 140 160 180 6 16 Down Mkt Capture Ratio, % 6 5 14 Morningstar Large Value Universe Vanguard Equity-Income Adm Excess Annualized StdDev, % 4 Total Annualized StdDev, % 5 3 12 S&P 500 Value Sharpe Ratio 2 4 Alpha, % 10 1 1 8 0 3 Return vs. Risk -1 6 Jul-10 - Jun-13 2 -2 35 4 -3 1 2 30 Total Annualized Return, % -4 -5 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 Vanguard Equity-Income Adm S&P 500 Value 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 Equity-Income Adm 6.04 0.76 93.07 1.70 11.44 4.60 5 S&P 500 Value 0.00 1.00 100.00 1.22 14.51 0.00 Universe(5%) 5.33 1.20 98.88 1.64 17.71 6.54 0 0 5 10 15 20 25 30 Universe(25%) 1.25 1.05 97.83 1.29 15.59 4.52 Universe(Median) -0.35 0.98 96.38 1.17 14.40 3.21 Total Annualized StdDev, % Universe(75%) -1.83 0.89 93.30 1.07 13.31 2.23 Morningstar Large Value Universe Vanguard Equity-Income Adm Universe(95%) -4.93 0.68 87.32 0.87 10.55 1.65 Cash S&P 500 Value City of Dover, Delaware General Employee Pension Plan 28

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Morgan Growth Adm 1.97 4.80 Portfolio Information Investment Strategy Summary % Cash Ticker VMRAX % US Stocks The investment seeks long-term growth of capital. The fund invests mainly in the stocks of Morningstar Category Large Growth % Bonds mid- and large-capitalization U.S. companies whose revenues and/or earnings are expected Avg Mkt Cap $MM 33103.45 % Non-US Stocks to grow faster than those of the average company in the market. It uses multiple investment Cat Med Mkt Cap $MM 39161.89 % Pref advisors. Net Assets $MM 9567.82 % Conv Turnover Ratio 49.00 _________________________________________________________________________ % Other % Assets in Top 10 Holdings 17.26 % Non-US Bonds Total Number of Holdings 332.00 Manager Name James P. Stetler Manager Tenure 9.50 93.15 Fund Incept Date 12/31/1968 Prospectus Exp Ratio 0.26 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 95.10 % Cash 1.97 30 % Canada 0.90 % US Stocks 93.15 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.53 % Non-US Stocks 4.80 25 % Eurozone 1.34 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 1.17 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.08 3 Year Mstar Rating 20 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 39 % Middle East 0.41 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 50 15 % Australasia 0.14 10 Year Mstar Rating % Asia - Developed 0.27 % Rank Cat 10 Yr 30 % Asia - Emerging 0.15 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 3.37 Avg Eff Duration NA 2 300 % Communication Services 2.72 Effective Maturity NA % Consumer Cyclical 17.71 Avg Credit Quality NA 0 % Consumer Defensive 6.82 US Govt/ Agency NA % Healthcare 15.77 AAA NA 250 % Industrials 13.97 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.22 A NA % Technology 27.94 BBB NA 200 % Energy 5.13 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 6.34 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 Below B NA Ratio Vanguard Morgan Growth Adm S&P 500 Growth NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Apple Inc 2.79% 100 Vanguard Morgan Growth Adm 2.94 12.24 17.47 17.08 5.61 Google, Inc. Class A 2.51% S&P 500 Growth 2.48 12.04 16.78 18.89 7.57 Cisco Systems Inc 2.35% Universe(5%) 4.58 16.40 25.55 19.98 10.03 International Business Machines Corp 1.66% Universe(25%) 2.93 12.68 19.50 18.18 7.29 50 Microsoft Corporation 1.53% Universe(Median) 2.05 10.98 16.83 16.69 5.64 Amgen Inc 1.32% Universe(75%) 1.19 9.24 14.34 15.06 3.98 Amazon.com Inc 1.30% Universe(95%) -0.27 6.90 10.95 12.15 1.12 Oracle Corporation 1.29% 0 0 Gilead Sciences Inc 1.26% Prospectus Exp Ratio Turnover Ratio Wal-Mart Stores Inc 1.24% City of Dover, Delaware General Employee Pension Plan 29

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Morgan Growth Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -40 Up/Down Market Capture Ratio Jul-10 - Jun-13 275 -60 250 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 225 Up Mkt Capture Ratio, % Vanguard Morgan Growth Adm S&P 500 Growth 200 175 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 150 Vanguard Morgan Growth Adm 33.91 10.61 9.31 11.32 11.36 -41.33 36.31 18.90 -2.42 15.25 125 S&P 500 Growth 27.08 6.97 1.14 11.01 9.13 -34.92 31.57 15.05 4.65 14.61 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 1 2 20 9 0 0 50 100 150 200 250 300 0 18 8 Down Mkt Capture Ratio, % -1 16 7 Morningstar Large Growth Universe Vanguard Morgan Growth Adm Total Annualized StdDev, % Excess Annualized StdDev, % -2 14 S&P 500 Growth 6 -3 12 Sharpe Ratio Alpha, % 5 -4 1 10 4 -5 8 Return vs. Risk 3 -6 6 Jul-10 - Jun-13 2 40 -7 4 1 35 -8 2 Total Annualized Return, % 30 -9 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 25 Vanguard Morgan Growth Adm S&P 500 Growth 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 Morgan Growth Adm -4.72 1.20 95.29 1.06 16.06 4.34 5 S&P 500 Growth 0.00 1.00 100.00 1.39 13.09 0.00 Universe(5%) 0.17 1.32 96.83 1.33 18.27 8.23 0 0 5 10 15 20 25 30 35 Universe(25%) -2.48 1.20 95.05 1.17 16.40 5.38 Universe(Median) -4.13 1.14 93.54 1.07 15.50 4.43 Total Annualized StdDev, % Universe(75%) -5.71 1.08 90.71 0.98 14.48 3.66 Morningstar Large Growth Universe Vanguard Morgan Growth Adm Universe(95%) -8.95 0.94 83.64 0.77 12.91 2.67 Cash S&P 500 Growth City of Dover, Delaware General Employee Pension Plan 30

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard PRIMECAP Inv 3.22 Portfolio Information Investment Strategy Summary 12.84 % Cash Ticker VPMCX % US Stocks The investment seeks long-term capital appreciation. The fund invests in stocks considered to Morningstar Category Large Growth % Bonds have above-average earnings growth potential that is not reflected in their current market Avg Mkt Cap $MM 49874.41 % Non-US Stocks prices. Its portfolio consists predominantly of large- and mid-capitalization stocks. Cat Med Mkt Cap $MM 39161.89 % Pref Net Assets $MM 34596.57 % Conv _________________________________________________________________________ Turnover Ratio 6.00 % Other % Assets in Top 10 Holdings 41.71 % Non-US Bonds Total Number of Holdings 124.00 Manager Name Theo A. Kolokotrones Manager Tenure 28.10 83.94 Fund Incept Date 11/01/1984 Prospectus Exp Ratio 0.45 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors Yes % United States 86.74 % Cash 3.22 30 % Canada 2.38 % US Stocks 83.94 % Latin America 0.20 % Bonds 0.00 % United Kingdom 0.75 % Non-US Stocks 12.84 25 % Eurozone 0.99 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 8.41 % 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 13 % Middle East 0.00 5 Year Mstar Rating % Japan 0.55 % Rank Cat 5 Yr 25 15 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 5 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 3.59 Avg Eff Duration NA 2 300 % Communication Services 2.11 Effective Maturity NA % Consumer Cyclical 5.23 Avg Credit Quality NA 0 % Consumer Defensive 0.85 US Govt/ Agency NA % Healthcare 33.11 AAA NA 250 % Industrials 13.89 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.03 A NA % Technology 30.71 BBB NA 200 % Energy 4.38 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 5.96 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.14 Below B NA Ratio Vanguard PRIMECAP Inv S&P 500 Growth NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Biogen Idec Inc 6.51% 100 Vanguard PRIMECAP Inv 3.19 17.80 27.49 18.89 7.18 Amgen Inc 6.23% S&P 500 Growth 2.48 12.04 16.78 18.89 7.57 Eli Lilly and Company 4.19% Universe(5%) 4.58 16.40 25.55 19.98 10.03 Roche Holding AG 4.14% Universe(25%) 2.93 12.68 19.50 18.18 7.29 50 Google, Inc. Class A 4.06% Universe(Median) 2.05 10.98 16.83 16.69 5.64 FedEx Corporation 3.67% Universe(75%) 1.19 9.24 14.34 15.06 3.98 Texas Instruments, Inc. 3.52% Universe(95%) -0.27 6.90 10.95 12.15 1.12 Microsoft Corporation 3.17% 0 0 Novartis AG ADR 3.16% Prospectus Exp Ratio Turnover Ratio Adobe Systems Inc 3.07% City of Dover, Delaware General Employee Pension Plan 31

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard PRIMECAP Inv Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -40 Up/Down Market Capture Ratio Jul-10 - Jun-13 275 -60 250 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 225 Up Mkt Capture Ratio, % Vanguard PRIMECAP Inv S&P 500 Growth 200 175 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 150 Vanguard PRIMECAP Inv 37.75 18.31 8.49 12.30 11.49 -32.41 34.45 12.89 -1.84 15.27 125 S&P 500 Growth 27.08 6.97 1.14 11.01 9.13 -34.92 31.57 15.05 4.65 14.61 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 1 2 20 9 0 0 50 100 150 200 250 300 0 18 8 Down Mkt Capture Ratio, % -1 16 7 Morningstar Large Growth Universe Vanguard PRIMECAP Inv Total Annualized StdDev, % Excess Annualized StdDev, % -2 14 S&P 500 Growth 6 -3 12 Sharpe Ratio Alpha, % 5 -4 1 10 4 -5 8 Return vs. Risk 3 -6 6 Jul-10 - Jun-13 2 40 -7 4 1 35 -8 2 Total Annualized Return, % 30 -9 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 25 Vanguard PRIMECAP Inv S&P 500 Growth 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 PRIMECAP Inv -0.98 1.06 92.91 1.27 14.45 3.94 5 S&P 500 Growth 0.00 1.00 100.00 1.39 13.09 0.00 Universe(5%) 0.17 1.32 96.83 1.33 18.27 8.23 0 0 5 10 15 20 25 30 35 Universe(25%) -2.48 1.20 95.05 1.17 16.40 5.38 Universe(Median) -4.13 1.14 93.54 1.07 15.50 4.43 Total Annualized StdDev, % Universe(75%) -5.71 1.08 90.71 0.98 14.48 3.66 Morningstar Large Growth Universe Vanguard PRIMECAP Inv Universe(95%) -8.95 0.94 83.64 0.77 12.91 2.67 Cash S&P 500 Growth City of Dover, Delaware General Employee Pension Plan 32

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Mid-Cap Value Index Admiral 1.00 Portfolio Information Investment Strategy Summary % Cash Ticker VMVAX % US Stocks The investment seeks to track the performance of a benchmark index that measures the Morningstar Category Mid-Cap Value % Bonds investment return of mid-capitalization value stocks. The fund employs an indexing Avg Mkt Cap $MM 6863.94 % Non-US Stocks investment approach designed to track the performance of the CRSP US Mid Cap Value Cat Med Mkt Cap $MM 7564.44 % Pref Index, a broadly diversified index of value stocks of mid-size U.S. companies. It attempts to Net Assets $MM 3511.19 % Conv replicate the target index by investing all, or substantially all, of its assets in the stocks that Turnover Ratio 33.00 make up the index, holding each stock in approximately the same proportion as its weighting % Other % Assets in Top 10 Holdings 8.81 in the index. % Non-US Bonds Total Number of Holdings 255.00 Manager Name Donald M. Butler _________________________________________________________________________ Manager Tenure 6.87 98.76 Fund Incept Date 08/17/2006 Prospectus Exp Ratio 0.10 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 99.00 % Cash 0.24 35 % Canada 0.00 % US Stocks 98.76 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.32 % Non-US Stocks 1.00 30 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.48 % Conv 0.00 Mstar Rating 25 % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 38 % Middle East 0.00 5 Year Mstar Rating 20 % Japan 0.00 % Rank Cat 5 Yr 30 % Australasia 0.00 10 Year Mstar Rating NA % Asia - Developed 0.21 % Rank Cat 10 Yr NA 15 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 6.43 Avg Eff Duration NA 3 300 % Communication Services 1.10 Effective Maturity NA % Consumer Cyclical 13.10 Avg Credit Quality NA 0 % Consumer Defensive 9.11 US Govt/ Agency NA % Healthcare 5.03 AAA NA 250 % Industrials 11.24 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 10.03 A NA % Technology 10.29 BBB NA 2 200 % Energy 7.20 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 16.37 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 10.11 Below B NA Ratio Vanguard Mid-Cap Value Index Admiral CRSP US Mid Cap TR USD NR/NA NA 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Mattel, Inc. 1.08% 1 100 Vanguard Mid-Cap Value Index Admiral 2.24 16.90 27.47 18.52 9.75 American Capital Agency Corp. 0.92% CRSP US Mid Cap TR USD 2.40 15.62 24.81 19.42 7.71 Host Hotels & Resorts Inc 0.91% Universe(5%) 4.38 20.59 33.86 21.17 11.79 Seagate Technology PLC 0.89% Universe(25%) 2.78 16.06 26.94 19.28 8.62 50 Genuine Parts Company 0.87% Universe(Median) 1.82 14.47 24.59 18.47 7.48 Actavis Inc 0.85% Universe(75%) 0.91 12.82 21.50 16.45 5.81 DTE Energy Holding Company 0.85% Universe(95%) -0.16 8.46 14.30 10.89 1.81 Regions Financial Corporation 0.83% 0 0 Life Technologies Corp 0.80% Prospectus Exp Ratio Turnover Ratio Pentair Ltd 0.80% City of Dover, Delaware General Employee Pension Plan 33

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Mid-Cap Value Index Admiral Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 40 50 Total Return, % 20 75 0 100 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -20 Up/Down Market Capture Ratio -40 Jul-10 - Jun-13 250 -60 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Mid-Cap Value Index Admiral CRSP US Mid Cap TR USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Mid-Cap Value Index Admiral NA NA NA NA -4.28 -36.54 37.72 21.81 -0.30 16.02 CRSP US Mid Cap TR USD 35.96 20.28 13.31 15.32 7.04 -41.83 36.90 26.16 -1.79 16.69 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 3 2 22 10 0 0 25 50 75 100 125 150 175 200 225 2 20 9 Down Mkt Capture Ratio, % 1 18 8 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Total Annualized StdDev, % Excess Annualized StdDev, % 0 16 7 CRSP US Mid Cap TR USD -1 14 6 Sharpe Ratio Alpha, % -2 12 1 5 -3 10 4 Return vs. Risk -4 8 3 Jul-10 - Jun-13 -5 6 35 -6 4 2 1 30 Total Annualized Return, % -7 2 -8 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 Vanguard Mid-Cap Value Index Admiral CRSP US Mid Cap TR USD 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 10 Vanguard Mid-Cap Value Index Admiral -0.06 0.96 97.70 1.19 15.16 2.38 5 CRSP US Mid Cap TR USD 0.00 1.00 100.00 1.21 15.61 0.00 Universe(5%) 2.08 1.30 98.62 1.36 20.87 9.29 0 0 5 10 15 20 25 30 35 Universe(25%) -0.51 1.10 97.85 1.15 17.51 5.57 Universe(Median) -1.62 1.05 95.60 1.10 16.61 3.80 Total Annualized StdDev, % Universe(75%) -3.53 0.94 92.58 1.00 15.44 2.75 Morningstar Midcap Blend Universe Vanguard Mid-Cap Value Index Admiral Universe(95%) -7.39 0.77 81.77 0.74 12.63 2.16 Cash CRSP US Mid Cap TR USD City of Dover, Delaware General Employee Pension Plan 34

Quarterly Investment Monitor Data as of 06/30/2013 Target Small Capitalization Value T 5.48 2.02 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 2094.09 % Non-US Stocks stocks of small companies. Small companies are those companies with market capitalizations Cat Med Mkt Cap $MM 1426.18 % Pref comparable to those in the Russell 2000 Value Index. As of December 31, 2012, the Russell Net Assets $MM 1500.14 % Conv 2000 Value Index median market capitalization was approximately $472 million and the Turnover Ratio 37.00 largest company by market capitalization was $4.664 billion. Market capitalization is % Other % Assets in Top 10 Holdings 8.85 measured at the time of purchase. % Non-US Bonds Total Number of Holdings 660.00 Manager Name Paul E. Viera, Jr. _________________________________________________________________________ Manager Tenure 11.50 92.12 Fund Incept Date 01/05/1993 Prospectus Exp Ratio 0.68 Phone Number 800-225-1852 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 97.85 % Cash 5.48 35 % Canada 1.02 % US Stocks 92.12 % Latin America 0.14 % Bonds 0.00 % United Kingdom 0.02 % Non-US Stocks 2.02 30 % Eurozone 0.72 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating 25 % Europe - Emerging 0.00 % Other 0.38 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 43 % Middle East 0.23 5 Year Mstar Rating 20 % Japan 0.00 % Rank Cat 5 Yr 46 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 4 15 % Asia - Emerging 0.02 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 6.46 Avg Eff Duration NA 2 200 % Communication Services 0.49 Effective Maturity NA % Consumer Cyclical 11.93 Avg Credit Quality NA 180 0 % Consumer Defensive 4.46 US Govt/ Agency NA % Healthcare 6.19 AAA NA 160 % Industrials 24.95 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 6.46 A NA % Technology 8.71 BBB NA 140 % Energy 7.77 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 18.71 B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 3.86 Below B NA Ratio Target Small Capitalization Value T S&P 600 Index NR/NA NA 1 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Bristow Group, Inc. 1.22% Target Small Capitalization Value T 2.49 15.17 25.49 17.64 9.32 60 Lufkin Industries, Inc. 1.18% S&P 600 Index 3.92 16.19 25.18 20.27 9.95 Aaron's, Inc. 1.01% Universe(5%) 5.62 20.58 33.24 23.24 13.07 Silgan Holdings, Inc. 0.88% 40 Universe(25%) 3.69 16.80 27.52 20.03 9.80 Hexcel Corporation 0.80% Universe(Median) 2.73 15.51 24.42 18.36 8.35 Raymond James Financial Inc 0.80% 20 Universe(75%) 1.69 13.63 22.34 16.55 7.10 Littelfuse Inc. 0.78% Universe(95%) -0.48 7.70 13.38 10.60 3.89 Trustmark Corporation 0.73% 0 0 iShares Russell 2000 Value Index 0.72% Prospectus Exp Ratio Turnover Ratio Cash America International Inc 0.72% City of Dover, Delaware General Employee Pension Plan 35

Quarterly Investment Monitor Data as of 06/30/2013 Target Small Capitalization Value T Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 40 50 Total Return, % 20 75 0 100 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -20 Up/Down Market Capture Ratio -40 Jul-10 - Jun-13 250 -60 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Target Small Capitalization Value T S&P 600 Index 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Target Small Capitalization Value T 47.10 24.02 10.10 17.72 0.52 -27.45 26.69 23.63 -0.48 14.14 S&P 600 Index 38.79 22.65 7.68 15.12 -0.30 -31.07 25.57 26.31 1.02 16.33 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 2 2 25 10 0 0 25 50 75 100 125 150 175 200 225 250 1 9 Down Mkt Capture Ratio, % 0 20 8 Morningstar SmallCap Blend Universe Target Small Capitalization Value T Total Annualized StdDev, % Excess Annualized StdDev, % -1 7 S&P 600 Index -2 15 6 Sharpe Ratio Alpha, % -3 1 5 -4 10 4 Return vs. Risk -5 3 Jul-10 - Jun-13 -6 35 -7 5 2 1 30 Total Annualized Return, % -8 -9 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 Target Small Capitalization Value T S&P 600 Index 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 Target Small Capitalization Value T -0.73 0.91 97.49 1.09 16.07 2.95 5 S&P 600 Index 0.00 1.00 100.00 1.15 17.36 0.00 Universe(5%) 1.24 1.21 99.31 1.19 22.02 9.30 0 0 5 10 15 20 25 30 35 40 Universe(25%) -0.88 1.09 98.46 1.09 19.17 5.18 Universe(Median) -2.07 1.04 96.69 1.01 18.44 3.80 Total Annualized StdDev, % Universe(75%) -3.88 0.99 93.70 0.90 17.34 2.43 Morningstar SmallCap Blend Universe Target Small Capitalization Value T Universe(95%) -8.54 0.84 84.16 0.67 15.41 1.89 Cash S&P 600 Index City of Dover, Delaware General Employee Pension Plan 36

Quarterly Investment Monitor Data as of 06/30/2013 American Funds New Perspective R6 3.61 2.13 Portfolio Information Investment Strategy Summary % Cash 41.76 Ticker RNPGX % US Stocks The investment seeks long-term growth of capital; future income is a secondary objective. Morningstar Category World Stock % Bonds The fund seeks to take advantage of investment opportunities generated by changes in Avg Mkt Cap $MM 46030.56 % Non-US Stocks international trade patterns and economic and political relationships by investing in common Cat Med Mkt Cap $MM 27857.18 % Pref stocks of companies located around the world. In pursuing its primary investment objective, Net Assets $MM 48928.01 % Conv it invests primarily in common stocks that the investment adviser believes have the potential Turnover Ratio 16.00 for growth. In pursuing its secondary objective, the fund invests in common stocks of % Other % Assets in Top 10 Holdings 18.14 companies with the potential to pay dividends in the future. % Non-US Bonds Total Number of Holdings 262.00 Manager Name Gregg E. Ireland _________________________________________________________________________ 52.12 Manager Tenure 20.59 Fund Incept Date 03/13/1973 Prospectus Exp Ratio 0.46 Phone Number 800-421-4225 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 44.48 % Cash 3.61 30 % Canada 2.49 % US Stocks 41.76 % Latin America 0.87 % Bonds 0.38 % United Kingdom 9.27 % Non-US Stocks 52.12 25 % Eurozone 16.75 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 11.89 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 2.13 3 Year Mstar Rating 20 % Africa 2.53 % Non-US Bonds 0.00 % Rank Cat 3 Yr 22 % Middle East 0.00 5 Year Mstar Rating % Japan 4.20 % Rank Cat 5 Yr 21 15 % Australasia 1.78 10 Year Mstar Rating % Asia - Developed 4.65 % Rank Cat 10 Yr 17 % Asia - Emerging 1.07 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 5.27 Avg Eff Duration NA 3 200 % Communication Services 2.35 Effective Maturity NA % Consumer Cyclical 17.36 Avg Credit Quality NA 0 180 % Consumer Defensive 12.64 US Govt/ Agency NA % Healthcare 17.02 AAA NA 160 % Industrials 13.03 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 A NA % Technology 12.00 BBB NA 140 2 % Energy 6.16 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 13.84 B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 0.33 Below B NA Ratio American Funds New Perspective R6 MSCI AC World Index ND USD NR/NA NA 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Novo Nordisk A/S 4.23% 1 60 American Funds New Perspective R6 1.69 8.10 19.95 14.77 5.27 Amazon.com Inc 2.35% MSCI AC World Index ND USD -0.42 6.05 16.57 12.36 2.30 Google, Inc. Class A 1.74% Universe(5%) 3.87 13.29 26.11 17.02 7.71 Home Depot, Inc. 1.73% 40 Universe(25%) 1.64 9.97 22.18 14.76 4.98 Nestle SA 1.50% Universe(Median) 0.46 7.90 19.07 12.85 3.14 Naspers Ltd 1.34% 20 Universe(75%) -0.67 5.24 15.33 10.73 1.00 Pernod Ricard NV 1.33% Universe(95%) -4.98 -4.40 4.53 4.74 -3.65 ACE Ltd 1.31% 0 0 Taiwan Semiconductor Manufacturing 1.31% Prospectus Exp Ratio Turnover Ratio British American Tobacco PLC 1.29% City of Dover, Delaware General Employee Pension Plan 37

Quarterly Investment Monitor Data as of 06/30/2013 American Funds New Perspective R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -40 Up/Down Market Capture Ratio Jul-10 - Jun-13 140 -60 120 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Up Mkt Capture Ratio, % 100 American Funds New Perspective R6 MSCI AC World Index ND USD 80 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 60 American Funds New Perspective R6 36.76 14.27 11.28 19.87 16.03 -37.83 37.72 13.11 -7.33 21.19 40 MSCI AC World Index ND USD 33.99 15.23 10.84 20.95 11.66 -42.20 34.63 12.67 -7.35 16.13 20 0 -20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 8 2 22 12 -40 0 20 40 60 80 100 120 140 160 180 20 6 Down Mkt Capture Ratio, % 18 10 Morningstar World Stock Universe American Funds New Perspective R6 Excess Annualized StdDev, % 4 Total Annualized StdDev, % 16 8 MSCI AC World Index ND USD 2 14 Sharpe Ratio Alpha, % 12 0 1 6 10 Return vs. Risk -2 8 4 Jul-10 - Jun-13 6 -4 25 4 2 20 -6 Total Annualized Return, % 2 15 -8 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 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -10 American Funds New Perspective R6 2.85 0.93 97.71 0.99 15.00 2.50 -15 MSCI AC World Index ND USD 0.00 1.00 100.00 0.81 15.87 0.00 -20 Universe(5%) 7.10 1.19 97.73 1.26 20.14 11.38 -25 0 5 10 15 20 25 30 35 Universe(25%) 3.00 1.08 95.82 0.98 18.17 7.10 Universe(Median) 0.82 1.01 93.19 0.84 16.61 4.99 Total Annualized StdDev, % Universe(75%) -1.89 0.89 83.85 0.67 14.99 3.68 Morningstar World Stock Universe American Funds New Perspective R6 Universe(95%) -7.65 0.58 64.98 0.33 11.14 2.67 Cash MSCI AC World Index ND USD City of Dover, Delaware General Employee Pension Plan 38

Quarterly Investment Monitor Data as of 06/30/2013 Harding Loevner Global Equity Inst 1.31 2.41 Portfolio Information Investment Strategy Summary % Cash Ticker HLMVX % US Stocks The investment seeks long-term capital appreciation. The fund invests in companies based in Morningstar Category World Stock 52.87 % Bonds the U.S. and other developed markets, as well as in emerging and frontier markets. It Avg Mkt Cap $MM 34932.51 % Non-US Stocks invests at least 80% of net assets in common stocks, preferred stock, rights and warrants Cat Med Mkt Cap $MM 27857.18 % Pref issued by companies that are based both inside and outside the United States, securities Net Assets $MM 532.10 % Conv convertible into such securities and investment companies that invest in the types of Turnover Ratio 32.00 securities in which the fund would normally invest. The fund normally holds 35-75 % Other % Assets in Top 10 Holdings 28.39 investments across at least 15 countries. % Non-US Bonds Total Number of Holdings 65.00 43.41 Manager Name Ferrill Roll _________________________________________________________________________ Manager Tenure 12.42 Fund Incept Date 11/29/1996 Prospectus Exp Ratio 0.95 Phone Number 877-435-8105 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 54.92 % Cash 1.31 30 % Canada 0.00 % US Stocks 52.87 % Latin America 2.77 % Bonds 0.00 % United Kingdom 6.52 % Non-US Stocks 43.41 25 % Eurozone 6.93 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 7.80 % Conv 0.00 Mstar Rating % Europe - Emerging 2.34 % Other 2.41 3 Year Mstar Rating 20 % Africa 1.31 % Non-US Bonds 0.00 % Rank Cat 3 Yr 72 % Middle East 0.00 5 Year Mstar Rating % Japan 9.32 % Rank Cat 5 Yr 39 15 % Australasia 1.18 10 Year Mstar Rating % Asia - Developed 3.13 % Rank Cat 10 Yr 44 % Asia - Emerging 3.80 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 6.70 Avg Eff Duration NA 3 200 % Communication Services 2.45 Effective Maturity NA % Consumer Cyclical 18.33 Avg Credit Quality NA 0 180 % Consumer Defensive 13.00 US Govt/ Agency NA % Healthcare 5.60 AAA NA 160 % Industrials 5.37 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 A NA % Technology 23.24 BBB NA 140 2 % Energy 6.06 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 19.25 B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 Below B NA Ratio Harding Loevner Global Equity Inst MSCI AC World Index ND USD NR/NA NA 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years eBay Inc 3.72% 1 60 Harding Loevner Global Equity Inst -1.03 3.63 10.77 11.62 4.08 Wells Fargo & Co 3.63% MSCI AC World Index ND USD -0.42 6.05 16.57 12.36 2.30 Unicharm Corp 3.10% Universe(5%) 3.87 13.29 26.11 17.02 7.71 Nestle SA ADR 3.03% 40 Universe(25%) 1.64 9.97 22.18 14.76 4.98 Google, Inc. Class A 2.89% Universe(Median) 0.46 7.90 19.07 12.85 3.14 Microsoft Corporation 2.57% 20 Universe(75%) -0.67 5.24 15.33 10.73 1.00 Schlumberger NV 2.54% Universe(95%) -4.98 -4.40 4.53 4.74 -3.65 Emerson Electric Co. 2.37% 0 0 Standard Chartered PLC 2.35% Prospectus Exp Ratio Turnover Ratio Coach, Inc. 2.20% City of Dover, Delaware General Employee Pension Plan 39

Quarterly Investment Monitor Data as of 06/30/2013 Harding Loevner Global Equity Inst Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -40 Up/Down Market Capture Ratio Jul-10 - Jun-13 140 -60 120 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Up Mkt Capture Ratio, % 100 Harding Loevner Global Equity Inst MSCI AC World Index ND USD 80 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 60 Harding Loevner Global Equity Inst 31.51 7.61 16.65 17.84 16.39 -38.29 40.16 15.55 -8.22 17.42 40 MSCI AC World Index ND USD 33.99 15.23 10.84 20.95 11.66 -42.20 34.63 12.67 -7.35 16.13 20 0 -20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 8 2 22 12 -40 0 20 40 60 80 100 120 140 160 180 20 6 Down Mkt Capture Ratio, % 18 10 Morningstar World Stock Universe Harding Loevner Global Equity Inst Excess Annualized StdDev, % 4 Total Annualized StdDev, % 16 8 MSCI AC World Index ND USD 2 14 Sharpe Ratio Alpha, % 12 0 1 6 10 Return vs. Risk -2 8 4 Jul-10 - Jun-13 6 -4 25 4 2 20 -6 Total Annualized Return, % 2 15 -8 0 0 0 10 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 Harding Loevner Global Equity Inst MSCI AC World Index ND USD 0 -5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -10 Harding Loevner Global Equity Inst 0.04 0.94 94.50 0.79 15.30 3.72 -15 MSCI AC World Index ND USD 0.00 1.00 100.00 0.81 15.87 0.00 -20 Universe(5%) 7.10 1.19 97.73 1.26 20.14 11.38 -25 0 5 10 15 20 25 30 35 Universe(25%) 3.00 1.08 95.82 0.98 18.17 7.10 Universe(Median) 0.82 1.01 93.19 0.84 16.61 4.99 Total Annualized StdDev, % Universe(75%) -1.89 0.89 83.85 0.67 14.99 3.68 Morningstar World Stock Universe Harding Loevner Global Equity Inst Universe(95%) -7.65 0.58 64.98 0.33 11.14 2.67 Cash MSCI AC World Index ND USD City of Dover, Delaware General Employee Pension Plan 40

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Emerging Mkts Stock Idx I 1.59 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 19354.73 % Non-US Stocks fund employs an indexing investment approach by investing substantially all (approximately Cat Med Mkt Cap $MM 15401.54 % Pref 95%) of its assets in the common stocks included in the FTSE Emerging Index, while Net Assets $MM 65584.61 % Conv employing a form of sampling to reduce risk. The FTSE Emerging Index includes Turnover Ratio 8.00 approximately 851 common stocks of companies located in emerging markets around the % Other % Assets in Top 10 Holdings 12.09 world. % Non-US Bonds Total Number of Holdings 1037.00 Manager Name Michael Perre _________________________________________________________________________ Manager Tenure 4.84 97.76 Fund Incept Date 05/04/1994 Prospectus Exp Ratio 0.12 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 0.21 % Cash 0.45 15 % Canada 0.00 % US Stocks 0.20 % Latin America 22.08 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 97.76 10 % Eurozone 0.08 % Pref 1.59 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 9.49 % Other 0.00 3 Year Mstar Rating 5 % Africa 8.53 % Non-US Bonds 0.00 % Rank Cat 3 Yr 60 % Middle East 0.27 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 46 0 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 19.37 % Rank Cat 10 Yr 34 % Asia - Emerging 39.96 -5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group -10 % Basic Materials 11.08 Avg Eff Duration NA 3 200 % Communication Services 9.10 Effective Maturity NA % Consumer Cyclical 7.37 Avg Credit Quality NA -15 180 % Consumer Defensive 8.47 US Govt/ Agency NA % Healthcare 1.50 AAA NA 160 % Industrials 6.51 AA NA -20 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 1.93 A NA % Technology 12.35 BBB NA 140 2 % Energy 11.28 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 26.96 B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 3.45 Below B NA Ratio Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD NR/NA NA 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years China Construction Bank Corp H Shares 1.64% 1 60 Vanguard Emerging Mkts Stock Idx I -8.44 -10.79 1.52 3.31 -0.63 China Mobile Ltd. 1.53% FTSE Emerging NR USD -7.70 -9.17 3.29 3.03 -0.11 Industrial And Commercial Bank Of China Ltd. H Shares 1.40% Universe(5%) -4.09 -2.63 13.47 7.59 4.19 Taiwan Semiconductor Manufacturing Co Ltd ADR 1.36% 40 Universe(25%) -6.62 -6.07 6.37 5.48 0.79 Samsung Electronics Co Ltd GDR 1.35% Universe(Median) -8.15 -8.62 3.78 4.07 -1.35 America Movil, S.A.B. de C.V. 1.09% 20 Universe(75%) -9.15 -10.84 1.25 1.96 -2.96 OAO Gazprom ADR 1.03% Universe(95%) -11.17 -15.31 -4.84 -3.28 -8.68 Bank Of China Ltd. H Shares 0.97% 0 0 CNOOC, Ltd. 0.86% Prospectus Exp Ratio Turnover Ratio Taiwan Semiconductor Manufacturing Co Ltd 0.85% City of Dover, Delaware General Employee Pension Plan 41

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Emerging Mkts Stock Idx I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 120 0 100 25 Total Return Rank, % 80 60 50 Total Return, % 40 75 20 0 100 -20 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -40 Up/Down Market Capture Ratio -60 Jul-10 - Jun-13 250 -80 225 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 200 Up Mkt Capture Ratio, % Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Emerging Mkts Stock Idx I 57.97 26.24 32.35 29.57 39.15 -52.74 76.35 19.06 -18.63 18.90 FTSE Emerging NR USD 53.69 27.58 34.70 32.84 39.41 -53.03 82.15 19.60 -19.15 17.58 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 5 0.5 25 9 0 0 20 40 60 80 100 120 140 160 180 200 220 4 8 Down Mkt Capture Ratio, % 3 0.4 20 7 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Total Annualized StdDev, % Excess Annualized StdDev, % 2 0.3 6 FTSE Emerging NR USD 1 15 Sharpe Ratio Alpha, % 0 5 0.2 -1 4 10 Return vs. Risk -2 0.1 3 Jul-10 - Jun-13 -3 2 12 -4 5 0.0 10 1 Total Annualized Return, % -5 8 -6 -0.1 0 0 6 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 Vanguard Emerging Mkts Stock Idx I FTSE Emerging NR USD 2 0 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -2 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -4 Vanguard Emerging Mkts Stock Idx I 0.32 1.02 97.39 0.25 21.24 3.46 -6 FTSE Emerging NR USD 0.00 1.00 100.00 0.24 20.51 0.00 -8 Universe(5%) 4.57 1.13 97.36 0.48 23.62 8.49 -10 0 5 10 15 20 25 30 35 40 45 50 Universe(25%) 2.55 1.04 96.27 0.37 21.80 5.59 Universe(Median) 1.12 1.00 95.00 0.29 21.05 4.82 Total Annualized StdDev, % Universe(75%) -0.88 0.94 93.77 0.19 19.99 4.21 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Universe(95%) -5.50 0.86 88.30 -0.03 18.22 3.45 Cash FTSE Emerging NR USD City of Dover, Delaware General Employee Pension Plan 42

Quarterly Investment Monitor Data as of 06/30/2013 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 8430.04 % Non-US Stocks performance of publicly traded equity REITs. The fund employs an indexing investment Cat Med Mkt Cap $MM 9055.94 % Pref approach designed to track the performance of the MSCI US REIT Index. The index is Net Assets $MM 34696.95 % Conv composed of stocks of publicly traded equity real estate investment trusts (known as REITs). Turnover Ratio 9.00 The fund attempts to replicate the index by investing all, or substantially all, of its assets in % Other % Assets in Top 10 Holdings 42.51 the stocks that make up the index, holding each stock in approximately the same proportion % Non-US Bonds Total Number of Holdings 124.00 as its weighting in the index. Manager Name Gerard C. O'Reilly Manager Tenure 17.14 _________________________________________________________________________ 99.14 Fund Incept Date 05/13/1996 Prospectus Exp Ratio 0.08 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 100.00 % Cash 0.86 20 % Canada 0.00 % US Stocks 99.14 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 0.00 15 % Eurozone 0.00 % Pref 0.00 Portfolio Ratings 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 10 10 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 18 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 33 5 % Asia - Emerging 0.00 0 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 0.00 Avg Eff Duration NA 2 140 % Communication Services 0.00 Effective Maturity NA -5 % Consumer Cyclical 0.00 Avg Credit Quality NA % Consumer Defensive 0.00 US Govt/ Agency NA 120 % Healthcare 0.00 AAA NA % Industrials 1.33 AA NA -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 98.67 A NA 100 % Technology 0.00 BBB NA % Energy 0.00 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 0.00 B NA Median to 75th Percentile 75th to 95th Percentile Ratio 80 % Utilities 0.00 Below B NA Vanguard REIT Index I MSCI US REIT NR USD NR/NA NA 1 Turnover 60 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Simon Property Group Inc 9.80% Vanguard REIT Index I -1.65 6.33 8.94 18.23 8.13 HCP Inc 4.50% 40 MSCI US REIT NR USD -1.88 5.77 7.79 16.96 6.18 Public Storage 4.44% Universe(5%) -0.86 6.60 13.22 19.18 10.42 Ventas Inc 4.32% Universe(25%) -1.15 5.48 8.47 17.96 8.00 Prologis Inc 3.68% 20 Universe(Median) -1.60 4.98 7.45 17.09 7.03 Equity Residential 3.54% Universe(75%) -2.27 4.20 6.69 16.13 5.19 Health Care REIT, Inc. 3.52% Universe(95%) -5.23 0.18 4.94 12.47 1.45 Boston Properties Inc 3.05% 0 0 AvalonBay Communities Inc 2.84% Prospectus Exp Ratio Turnover Ratio Vornado Realty Trust 2.80% City of Dover, Delaware General Employee Pension Plan 43

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard REIT Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -30 Up/Down Market Capture Ratio -40 Jul-10 - Jun-13 160 -50 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 140 Up Mkt Capture Ratio, % Vanguard REIT Index I MSCI US REIT NR USD 120 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 Vanguard REIT Index I 35.65 30.93 12.05 35.15 -16.38 -36.95 29.76 28.56 8.70 17.65 MSCI US REIT NR USD NA NA NA 34.18 -17.84 -39.05 26.27 26.97 7.48 16.47 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 2 20 12 0 0 20 40 60 80 100 120 140 160 18 3 Down Mkt Capture Ratio, % 10 16 Morningstar Real Estate Universe Vanguard REIT Index I Excess Annualized StdDev, % 2 Total Annualized StdDev, % 14 MSCI US REIT NR USD 8 1 12 Sharpe Ratio Alpha, % 0 1 10 6 8 Return vs. Risk -1 4 6 Jul-10 - Jun-13 -2 25 4 2 -3 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 Vanguard REIT Index I MSCI US REIT 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 Vanguard REIT Index I 1.12 1.00 99.98 1.08 16.72 0.21 5 MSCI US REIT NR USD 0.00 1.00 100.00 1.02 16.75 0.00 Universe(5%) 3.55 1.03 99.67 1.18 19.52 11.23 0 0 5 10 15 20 25 Universe(25%) 0.95 1.01 99.45 1.07 17.12 2.44 Universe(Median) 0.38 0.99 99.06 1.03 16.67 1.67 Total Annualized StdDev, % Universe(75%) -0.29 0.97 98.14 0.99 16.40 1.28 Morningstar Real Estate Universe Vanguard REIT Index I Universe(95%) -3.27 0.85 77.79 0.74 14.80 0.98 Cash MSCI US REIT NR USD City of Dover, Delaware General Employee Pension Plan 44

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

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

AMENDMENT II TO THE INVESTMENT POLICY STATEMENT FOR CITY OF DOVER EMPLOYEES’ PENSION BOARD The following amendment to the investment policy has been reviewed and approved by the Board: I. Allocation of Plan Assets – The plan will utilize a dynamic policy linked to funded status of the plan. As funded status improves to the next threshold, the allocation of the plan will be adjusted to the specified allocation. Within each threshold, there will be a range of +/- 5% to the target to allow for modest market fluctuations before rebalancing of the portfolio. The portfolio will be reviewed at least quarterly and adjusted as necessary to maintain alignment with the target allocations. DynamicInvestmentPolicy FundedStatusTargetAllocation AssetCategoryIndex 40% 70% 80% 85% 90% 95% 100% Cash&ShortTermBond 10% 7% 5% 5% 5% 5% 5% USTreasuries/InflationͲlinked 6% 7% 7% 8% 9% 10% 13% IntermediateTermBond 8% 11% 12% 14% 16% 21% 24% LongTermBond 9% 11% 13% 16% 17% 21% 25% HighYieldBond 6% 7% 8% 8% 8% 8% 8% LargeCapValue–USStock 10% 10% 9% 8% 8% 7% 4% LargeCapGrowth–USStock 11% 9% 9% 8% 7% 5% 4% MidCap–USStock 5% 5% 5% 5% 5% 4% 3% SmallCap–USStock 7% 7% 7% 6% 4% 3% 3% RealEstate/REIT 8% 7% 6% 5% 5% 3% 3% NonͲUSStock 10% 9% 9% 8% 7% 5% 3% EmergingMarkets 10% 10% 10% 9% 9% 8% 5% Equity 61% 57% 55% 49% 45% 35% 25% FixedIncome/Cash 39% 43% 45% 51% 55% 65% 75% Total 100% 100% 100% 100% 100% 100% 100% II. Performance Monitoring Benchmarks – The plan will utilize asset category specific benchmarks to monitor investment manager performance. In addition, overall portfolio performance will be benchmarked to a normal portfolio composed of category indexes allocated based on the Dynamic Investment Policy funded status position. AssetCategory Index Cash&MoneyMarket CitiGroup3MonthTBill ShortͲtermBond BofAMerrillLynch1Ͳ3YrCorpIndex IntermediateͲtermBond BarCapIntermUSGovt/CreditIndex LongͲtermBond BarCapLongGovtCreditIndex LargeCapValue S&P/Citi500Value LargeCapBlend S&P500Index LargeCapGrowth S&P/Citi500Growth MidCapValue S&P/CitiMidͲCap400Value MidCapGrowth S&P/CitiMidͲCap400Growth SmallCapValue S&P/CitiSmallCap600Value SmallCapGrowth S&P/CitiSmallCap600Growth MSCIACWIxUSNR MSCIEAFE S&PEPACEMI MSCIEAFESmallCap MSCIEMNR MSCIEM(EmergingMarkets)

AMENDMENT II TO THE INVESTMENT POLICY STATEMENT FOR CITY OF DOVER EMPLOYEES’ PENSION BOARD III. Approval by the Board – To indicate approval of this amendment to the Investment Policy Statement, the appropriate designated Board member shall sign below. This Amendment to the Statement of Investment Policy approved by action of the Board. Date: Approved by: Chairman Title:

City of Dover Year Ended June 30, 2012 Meeting with Pension Board August 8, 2013

Table of Contents Page Number About Us  Scope of Services 1  SBC FORCAM Audit Approach 4  Evaluation Assessment of Control Environment 5  Evaluation of Key Processes 6  Our Responsibility Related to Fraud 7  Engagement team contact information 8

CLIENT Scope of Services  Audit of the June 30, 2012 financial statements; Result: unqualified opinion  Relationship of Pension Fund information to Financial Statements  Legal versus accounting  Included as a fiduciary fund of the City  Considered a major fund  Independent public accountants opinion  Other types of assurance services  Performance Audit  Internal Audit  Agreed Upon Procedures  Examinations 1

SBC FORCAM Audit Approach Focus on Operations Risk Controls and Misstatement 4

Evaluation and Assessment of Control Environment Area Points to Consider Our Assessment • Key executive integrity, ethics and behavior • Control consciousness and operating style • Commitment to competence Control Environment • Board of Directors’ participation in governance and oversight Effective • Organizational structure and assignment of authority and responsibility • HR policies and procedures • Mechanisms to anticipate, identify, and react to significant events Risk Assessment • Process and procedures to identify changes in GAAP, business Effective practices and internal control • Adequate performance reports produced from information system • Information systems are connected with business strategy • Commitment of HR and finance to develop, test and monitor IT Information & systems and programs Effective Communication • Business continuity/disaster plan for IT • Established communication channels for employees to fulfill responsibilities • Adequate communication across organization • Existence of necessary policies and procedures • Clear financial objectives with active monitoring • Logical segregation of duties Control Activities Effective • Periodic comparisons of book to actual and physical count to books • Adequate safeguards of documents, records and assets • Access controls in place • Periodic evaluations of internal controls Monitoring • Implementation of improvement recommendations Effective • Internal audit function established to monitor activities 5

Evaluation of Key Processes Process Function Design Operation Treasury Cash Management Effective Effective Investment Accounting Estimation Methodology Effective Effective Calculation Financial Reporting Accounting Principles and Disclosure Effective Effective Closing the Books General Ledger and Journal Entry processing Sustention and Review of Results Expenditures Purchasing Effective Effective Benefit payments Accounts Payable/Cash Disbursement Payroll Hiring Effective Effective Attendance Reporting Payroll Accounting, Processing, and Disbursements Separation Revenue Contributions Effective Effective Investment income/activity Compliance Assess Internal and External Risk Effective Effective Regulatory Compliance Monitor Compliance Information Technology Program Integrity and Change Management Effective Effective Information Security and Transaction Authorization Segregation of Duties and Management Oversight Computer Operations 6

Our Responsibility Related to Fraud Our Responsibility Related to Fraud  Plan and perform audit to obtain reasonable assurance that there is no material misstatement caused by error or fraud  Comply with GAAS SAS No. 99 “Consideration of Fraud in a Financial Statement Audit”  Approach all audits with an understanding that fraud could occur in any entity, at any time, by anyone  Perform mandatory procedures required by GAAS and our firm policies Examples of Procedures Performed  Discuss thoughts and ideas on where the financial statements might be susceptible to material misstatement due to fraud  Understand pressures on the financial statement results  Understand the tone and culture of the organization  Look for unusual or unexpected transactions, relationships, or procedures  Discussions with individuals outside of finance  Evaluate key processes and controls  Consider information gathered throughout the audit 7

CLIENT Engagement Team Leaders and Contact Info 8