Attachment

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD AGENDA AUGUST 8, 2013 - 11:00 A.M. CITY HALL CONFERENCE ROOM 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Adoption of Minutes - OPEB Board Meeting of February 14, 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. Scheduling of Future Meeting Dates (Suggested Dates - November 14, 2013; February 13, 2014; May 8, 2014; August 14, 2014) 6. Adjournment by 12:00 noon 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\OPEB\2013\08-08-2013 OPEB BOARD.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD The Other Post-Employment Benefits (OPEB) Board meeting was held on February 14, 2013 at 11:03 a.m with Chairwoman Mitchell presiding. Members present were Mrs. Williams, Mr. Koenig, and Mrs. Hawkins. Mr. Hare was absent. AGENDA ADDITIONS/DELETIONS Mrs. Williams moved for approval of the agenda as presented, seconded by Mr. Koenig and unanimously carried. Adoption of Minutes - OPEB Board Meeting of November 8, 2012 Mr. Koenig moved for adoption of the minutes of the OPEB Board meeting of November 8, 2012, seconded by Mrs. Hawkins and unanimously carried. Quarterly Performance Review (Quarter Ending December 31, 2012) (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, Milliman, Inc., reviewed the City of Dover OPEB Quarterly Investment Monitor Summary Report for the quarter ending December 31, 2012. Mr. Marzinsky advised members that the assets of the plan were approximately $12M, increased from $10.95M, noting that a contribution was made and fees were deducted from the plan during the quarter. He stated that funds in the plan were reallocated in November based on the changes approved by members and the portfolio had returned approximately 1.21% for the quarter. He noted that one (1) year market returns on equities were very good and bonds were also positive for the year. Referring to Page 9 of the report, Mr. Marzinsky noted that the $0 amounts in the chart reflected new investments added to the plan and that the portfolio was now achieving the target allocations approved during the last meeting. He did not foresee any major changes to the portfolio in the near future; however, he noted that rebalancing may be suggested. In addition, he advised members that adjustments to the fund allocations may be recommended when Milliman, Inc.’s capital markets group provides their annual projections on returns and risk by asset category. He noted the inclusion of a number of index investments in the portfolio, which he stated would reduce the investment management expense. Mrs. Williams questioned the fees versus the rate of return on the investment. Responding, Mr. Marzinsky stated that the return on the plan, as reflected on Page 12 of the report, was approximately 14.3%, the expense ratio was approximately .4% (based on the balances in the plan last year), and the net return was approximately 13.89%. He explained that a rate of 6% to 7% was being used when valuing the fund’s liabilities and the assets were growing faster than the liabilities; therefore, the funded status of the plan was improving. In response to Mrs. Williams, Mr. Marzinsky stated his opinion that the range of fees would probably not exceed 0.5% due to the use of more index investments. He noted that there would always be a trust and custody fee paid to the trust company to hold the assets, cut checks, and perform daily work on the plan.

OPEB MEETING OF FEBRUARY 14, 2013 PAGE 2 Referring to Page 10, Investment Policy Review - Active Management, Mr. Marzinsky stated that the fund managers were performing well and all investments ranked well compared to their peer groups. He explained that the three (3) year returns did not show any significant underperformance. The Target Small Capitalization Value T trailed slightly in 2012, but not significantly, and it still ranked well compared to peers and was exceeding the market with less volatility than the market. The Alpha and Sharpe statistics revealed that fund managers were doing well compared to peers for the level of risk taken. Mr. Marzinsky noted that Milliman, Inc. would be monitoring the investments and inform members of any issues at the next meeting and may adjust the allocation slightly, but no major changes were anticipated. Mr. Koenig moved to accept the report, seconded by Mrs. Williams and unanimously carried. Mrs. Williams moved for adjournment, seconded by Mrs. Hawkins and unanimously carried. Meeting adjourned at 11:18 A.M. Donna S. Mitchell Chair DM/JS/mk/dd/tm S:\AGENDAS-MINUTES-PACKETS\Misc-Minutes\OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD\2013\02-14-2013 OPEB.wpd

Quarterly Investment Monitor Summary Report for the Quarter Ending June 30, 2013 Prepared for City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45

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, OPEB Plan – Board From: Jeff Marzinsky & Kevin Abessi/Milliman Re: Investment Committee Meeting Notes – 8/8/2013 Enclosures: Milliman Quarterly Investment Monitor Report (QIM) 1. Investment Review through 6/30/2013: a. As of 6/30/2013, assets in the plan total $13.41 million, down from $13.72 million as of 3/31/2013. During the quarter, the plan experienced no contributions, and incurred fees of $1,250. b. Performance of the plan portfolio, with a -2.27% net (-2.18% gross) return, was slightly below than the Plan normal portfolio index performance of -2.23%. c. Plan asset allocation is within range of target allocations set in November 2012. NEW Target Allocation Fund with Additional Asset NEW Asset Allocation Range Category Description Category Investment Name Classes 11/2012 Money Market CA WELLS FARGO ADVANTAGE CASH 2.00% 0-10%; target 5% Cash + STB Short Term Bonds STB Vanguard Short Term Bond 3.00% 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 PIMCO Total Return 5.50% 6-16%; target 11% INTB Intermediate Term Bonds INTB Vanguard Total Bond Mkt Index Signa 5.50% 6-16%; target 11% INTB Long Term Bonds LTB PIMCO Long Duration 11.00% 17-27%; target 22% LTB Long Term Bonds LTB Vanguard Long Duration 11.00% 17-27%; target 22% LTB Large Cap Value LCV American Funds Washington Mutual 10.00% 5-15%; target 10% LCV Large Cap Blend LCB Vanguard 500 Index 0.00% Large Cap Growth LCG Vanguard Growth Index 10.00% 5-15%; target 10% LCG Mid Cap MCV Vanguard Mid Cap Value Index 5.00% 0-10%; target 5% MC Small Cap SCV Target Small Cap Value 5.00% 0-10%; target 5% SC Real Estatement Investment REIT Vanguard REIT Index 5.00% 0-10%; target 5% REIT Foreign Equity GLB American Funds New Perspective 5.00% 5-15%; target 10% GLB Foreign Equity GLB Harding Loevner Global Equity 5.00% 5-15%; target 10% GLB Emerging Markets EMG Vanguard Emerging Mkts 15.00% 10-20%; target 15% Emg Mkts Offices in Principal Cities Worldwide

City of Dover OPEB Trust Quarterly Return Summary OPEB-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV OPEB-NET RETURN RETURN 4/30/2013 $ 13,715,218.71 $ - $ - $ 1,250.00 $ 307,655.52 $ 14,021,624.23 2.24% 2.27% 5/31/2013 $ 14,021,624.23 $ - $ - $ - $ (217,179.06) $ 13,804,445.17 -1.55% -1.52% 6/30/2013 $ 13,804,445.17 $ - $ - $ - $ (401,977.49) $ 13,402,467.68 -2.91% -2.88% $ - $ - $ 1,250.00 $ (311,501.03) Quarterly Return -2.27% -2.18% 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 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 7

Quarterly Investment Monitor Data as of 06/30/2013 Performance Summary City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 Cash Inv MMkt I $267,689 2.00% $268,901 1.96% WFIXX Vanguard Short-Term Bond Index Signal $40,046 3.01% $404,030 2.94% VBSSX Vanguard Inflation-Protected Secs I $249,628 1.86% $269,433 1.96% VIPIX PIMCO Total Return Instl $714,649 5.33% $740,833 5.40% PTTRX Vanguard Total Bond Market Index Signal $722,890 5.39% $740,836 5.40% VBTSX PIMCO Long Duration Total Return Instl $1,371,317 10.22% $1,470,208 10.71% PLRIX Vanguard Long-Term Bond Index I $1,381,093 10.30% $1,472,848 10.73% VBLLX American Funds Washington Mutual R6 $1,487,579 11.09% $1,419,821 10.35% RWMGX Vanguard Growth Index I $1,433,999 10.69% $1,417,129 10.33% VIGIX Vanguard Mid Cap Index Adm $736,659 5.49% $720,523 5.25% VIMAX Target Small Capitalization Value T $731,868 5.46% $714,068 5.20% TASVX American Funds New Perspective R6 $705,468 5.26% $693,772 5.06% RNPGX Harding Loevner Global Equity Inst $678,507 5.06% $685,591 5.00% HLMVX Vanguard Emerging Mkts Stock Idx I $1,838,036 13.70% $2,005,917 14.62% VEMIX Vanguard REIT Index I $688,882 5.14% $700,431 5.10% VGSNX Plan Total $13,409,310 $13,724,340 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 Total Return Instl 21 0 1.53 2.68 1.67 1.36 33 44 0 0 PIMCO Long Duration Total Return Instl 38 25 -0.09 1.12 0.94 0.97 75 75 75 56 American Funds Washington Mutual R6 15 24 1.16 1.07 0.79 0.83 7 6 18 17 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 Other Postemployment Benefit (OPEB) GASB 45 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 Total Bond Market Index Signal -0.19 NA 1.01 0.25 NA NA 0.10 Vanguard Long-Term Bond Index I -0.05 0.00 1.02 0.87 1.01 0.82 0.07 Vanguard Growth Index I 1.82 1.22 0.99 0.87 1.00 1.03 0.08 Vanguard Mid Cap Index Adm -0.40 0.22 1.03 0.91 1.02 1.28 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 Other Postemployment Benefit (OPEB) GASB 45 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 Cash Inv MMkt I 0.01 0.03 0.07 0.08 0.41 1.85 WFIXX 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 PIMCO Total Return Instl (3.60) (3.02) 1.20 4.67 7.26 5.97 PTTRX 5.00 0.46 Intermediate-term Bond Vanguard Total Bond Market Index Signal (2.42) (2.48) (0.85) 3.40 5.14 4.47 VBTSX 3.00 0.10 BC Intermediate Government/Credit (1.70) (1.45) 0.28 3.14 4.57 4.03 N/A NA NA Barclays US Agg Float Adj TR USD (2.31) (2.42) (0.62) 3.59 NA NA N/A NA NA 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 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 BC Long Government/Credit (6.11) (7.97) (4.69) 7.01 8.50 6.21 N/A NA NA Large Value American Funds Washington Mutual R6 4.77 14.95 20.86 19.26 7.54 7.25 RWMGX 5.00 0.30 S&P 500 Value 3.36 15.73 25.04 18.10 6.47 7.61 N/A NA NA Large Growth Vanguard Growth Index I 1.19 10.61 16.85 18.80 7.18 7.53 VIGIX 4.00 0.08 CRSP US Large Cap Growth TR USD 1.27 10.04 15.81 16.98 5.96 7.51 N/A NA NA Mid-Cap Blend Vanguard Mid Cap Index Adm 2.37 15.56 25.02 19.01 7.93 10.45 VIMAX 4.00 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 OPEB-GROSS RETURN (2.18) 1.27 7.15 NA NA NA N/A NA NA Total Plan OPEB-NET RETURN (2.27) 1.08 6.77 NA NA NA N/A NA NA OPEB Plan Policy Index (2.23) 1.28 7.76 10.49 4.57 6.30 N/A NA NA City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 PIMCO Total Return Instl Vanguard Total Bond Market Index Signal PIMCO Long Duration Total Return Instl Vanguard Long-Term Bond Index I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 American Funds Washington Mutual R6 Vanguard Growth Index I Vanguard Mid Cap Index Adm Target Small Capitalization Value T Vanguard REIT Index I City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 15

Quarterly Investment Monitor Data as of 06/30/2013 Core Fund Review City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 20

Quarterly Investment Monitor Data as of 06/30/2013 PIMCO Total Return Instl 9.33 Portfolio Information Investment Strategy Summary % Cash Ticker PTTRX % US Stocks The investment seeks maximum total return, consistent with preservation of capital and Morningstar Category Intermediate-term Bond % Bonds prudent investment management. The fund normally invests at least 65% of its total assets Avg Mkt Cap $MM NA % Non-US Stocks in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be Cat Med Mkt Cap $MM 14591.63 % Pref represented by forwards or derivatives such as options, futures contracts, or swap 42.60 Net Assets $MM 267996.79 % Conv agreements. It invests primarily in investment-grade debt securities, but may invest up to Turnover Ratio 380.00 10% of its total assets in high yield securities ("junk bonds") rated B or higher by Moody's, or % Other % Assets in Top 10 Holdings 49.90 equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable 46.50 % Non-US Bonds Total Number of Holdings 20110.00 quality. Manager Name William H. Gross Manager Tenure 26.16 _________________________________________________________________________ Fund Incept Date 05/11/1987 1.47 Prospectus Exp Ratio 0.46 Phone Number 888-877-4626 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States NA % Cash 9.33 8 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 42.60 7 % United Kingdom NA % Non-US Stocks 0.00 6 % Eurozone NA % Pref 0.10 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating 5 % Europe - Emerging NA % Other 1.47 3 Year Mstar Rating % Africa NA % Non-US Bonds 46.50 % Rank Cat 3 Yr 34 4 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 13 3 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 6 2 % 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 4.73 2 500 % Communication Services NA Effective Maturity 6.73 -2 % Consumer Cyclical NA Avg Credit Quality NA 450 % Consumer Defensive NA US Govt/ Agency NA -3 % Healthcare NA AAA NA 400 % Industrials NA AA NA -4 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A NA % Technology NA BBB NA 350 % Energy NA BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B NA 300 Median to 75th Percentile 75th to 95th Percentile % Utilities NA Below B NA Ratio PIMCO Total Return Instl BC Intermediate Government/Credit NR/NA NA 1 250 Turnover 200 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Fin Fut Euro$ Cme 06/15/15 12.56% PIMCO Total Return Instl -3.60 -3.02 1.20 4.67 7.26 150 Irs Usd 3mls/1.50000s 03/18/15-16 Cme 12.47% BC Intermediate Government/Credit -1.70 -1.45 0.28 3.14 4.57 Fin Fut Euro$ Cme 12/14/15 8.55% Universe(5%) -1.84 -2.00 2.59 6.23 7.03 Fin Fut Us 10yr Cbt 06/19/13 3.16% 100 Universe(25%) -2.55 -2.37 0.93 4.61 6.30 Fin Fut Euro$ Cme 03/14/16 2.49% Universe(Median) -2.90 -2.65 0.36 3.74 4.83 Fin Fut Euro$ Cme 09/14/15 2.34% 50 Universe(75%) -3.02 -2.90 -1.06 2.69 4.21 US Treasury Note 1.625% 2.28% Universe(95%) -3.33 -3.34 -2.14 2.20 3.12 Irs Usd 3mlq/2.75000s 06/19/13-43 Cme 2.06% 0 0 Fannie Mae Single Family TBA 3% 2043-04-01 2.06% Prospectus Exp Ratio Turnover Ratio Brazil(Fed Rep Of) 10% 1.93% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 21

Quarterly Investment Monitor Data as of 06/30/2013 PIMCO Total Return Instl Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 25 0 20 25 Total Return Rank, % 15 50 Total Return, % 10 75 5 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-13 180 -15 160 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Up Mkt Capture Ratio, % 140 PIMCO Total Return Instl BC Intermediate Government/Credit 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 PIMCO Total Return Instl 5.56 5.14 2.89 3.99 9.07 4.82 13.83 8.83 4.16 10.36 80 BC Intermediate Government/Credit 4.31 3.04 1.58 4.08 7.39 5.08 5.24 5.89 5.80 3.89 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 5 3 0 -20 0 20 40 60 80 100 120 140 160 Down Mkt Capture Ratio, % 2 4 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Total Annualized StdDev, % Excess Annualized StdDev, % 2 BC Intermediate Government/Credit 1 3 Sharpe Ratio Alpha, % 1 0 2 Return vs. Risk 1 Jul-10 - Jun-13 7 -1 1 6 Total Annualized Return, % -2 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 PIMCO Total Return Instl BC Intermediate Government/Credit 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 PIMCO Total Return Instl 0.53 1.33 63.76 1.15 3.94 2.49 1 BC Intermediate Government/Credit 0.00 1.00 100.00 1.28 2.36 0.00 Universe(5%) 2.20 1.34 93.82 1.56 4.24 2.97 0 0 1 2 3 4 5 Universe(25%) 0.91 1.18 89.28 1.43 3.64 2.47 Universe(Median) 0.28 1.14 75.05 1.12 3.06 1.59 Total Annualized StdDev, % Universe(75%) -0.57 1.03 55.39 0.95 2.58 1.03 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Universe(95%) -1.37 0.89 54.70 0.72 2.31 0.63 Cash BC Intermediate Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 22

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Total Bond Market Index Signal 6.59 Portfolio Information Investment Strategy Summary 11.61 % Cash Ticker VBTSX % US Stocks The investment seeks to track the performance of a broad, market-weighted bond index. The Morningstar Category Intermediate-term Bond % Bonds fund employs an indexing investment approach designed to track the performance of the Avg Mkt Cap $MM NA % Non-US Stocks Barclays U.S. Aggregate Float Adjusted Index. It invests by sampling the index, meaning Cat Med Mkt Cap $MM 14591.63 % Pref that it holds a broadly diversified collection of securities that, in the aggregate, approximates Net Assets $MM 113981.55 % Conv the full index in terms of key risk factors and other characteristics. The fund invests at least Turnover Ratio 80.00 80% of assets in bonds held in the index. It maintains a dollar-weighted average maturity % Other % Assets in Top 10 Holdings 5.79 consistent with that of the index, ranging between 5 and 10 years. % Non-US Bonds Total Number of Holdings 15783.00 Manager Name Kenneth Volpert _________________________________________________________________________ Manager Tenure 20.59 81.73 Fund Incept Date 12/11/1986 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 6.59 8 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 81.73 7 % United Kingdom NA % Non-US Stocks 0.00 6 % Eurozone NA % Pref 0.05 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating 5 % Europe - Emerging NA % Other 0.02 3 Year Mstar Rating % Africa NA % Non-US Bonds 11.61 % Rank Cat 3 Yr 73 4 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 65 3 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 45 2 % 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 5.31 2 500 % Communication Services NA Effective Maturity 7.30 -2 % Consumer Cyclical NA Avg Credit Quality AA 450 % Consumer Defensive NA US Govt/ Agency NA -3 % Healthcare NA AAA 72.30 400 % Industrials NA AA 4.55 -4 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 11.96 % Technology NA BBB 11.19 350 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 300 Median to 75th Percentile 75th to 95th Percentile % Utilities NA Below B 0.00 Ratio Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD NR/NA 0.00 1 250 Turnover 200 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Bond 6.25% 0.69% Vanguard Total Bond Market Index Signal -2.42 -2.48 -0.85 3.40 5.14 150 US Treasury Note 0.375% 0.63% Barclays US Agg Float Adj TR USD -2.31 -2.42 -0.62 3.59 NA Fannie Mae Single Family TBA 3.5% 2043-04-01 0.63% Universe(5%) -1.84 -2.00 2.59 6.23 7.03 US Treasury Note 1% 0.60% 100 Universe(25%) -2.55 -2.37 0.93 4.61 6.30 US Treasury Note 0.375% 0.58% Universe(Median) -2.90 -2.65 0.36 3.74 4.83 FHLMC 3.5% 0.56% 50 Universe(75%) -3.02 -2.90 -1.06 2.69 4.21 US Treasury Note 0.25% 0.54% Universe(95%) -3.33 -3.34 -2.14 2.20 3.12 US Treasury Note 0.375% 0.53% 0 0 Fannie Mae Single Family TBA 3% 2043-04-01 0.52% Prospectus Exp Ratio Turnover Ratio US Treasury Note 2.125% 0.51% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 23

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Total Bond Market Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 25 0 20 25 Total Return Rank, % 15 50 Total Return, % 10 75 5 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-13 160 -15 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 Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 120 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 Vanguard Total Bond Market Index Signal 3.97 4.24 2.40 4.29 7.02 5.15 6.04 6.54 7.68 4.15 Barclays US Agg Float Adj TR USD NA NA NA NA NA NA NA 6.58 7.92 4.32 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 2 5 4 0 -20 0 20 40 60 80 100 120 140 Down Mkt Capture Ratio, % 2 4 Morningstar IntermTerm Bond Universe Vanguard Total Bond Market Index Signal Excess Annualized StdDev, % 3 Total Annualized StdDev, % Barclays US Agg Float Adj TR USD 1 3 Sharpe Ratio Alpha, % 1 2 0 2 Return vs. Risk Jul-10 - Jun-13 1 7 -1 1 6 Total Annualized Return, % -2 0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 4 Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 3 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 2 Vanguard Total Bond Market Index Signal -0.21 1.01 99.29 1.12 2.93 0.25 1 Barclays US Agg Float Adj TR USD 0.00 1.00 100.00 1.20 2.89 0.00 Universe(5%) 2.73 1.09 97.00 1.56 4.24 3.11 0 0 1 2 3 4 5 Universe(25%) 1.16 1.02 92.27 1.43 3.64 1.86 Universe(Median) 0.30 0.92 74.97 1.12 3.06 1.56 Total Annualized StdDev, % Universe(75%) -0.48 0.85 74.04 0.95 2.58 0.84 Morningstar IntermTerm Bond Universe Vanguard Total Bond Market Index Signal Universe(95%) -1.28 0.72 46.46 0.72 2.31 0.51 Cash Barclays US Agg Float Adj TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 26

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 Other Postemployment Benefit (OPEB) GASB 45 27

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 Other Postemployment Benefit (OPEB) GASB 45 28

Quarterly Investment Monitor Data as of 06/30/2013 American Funds Washington Mutual R6 1.48 1.29 Portfolio Information Investment Strategy Summary 9.20 % Cash Ticker RWMGX % US Stocks The investment seeks to produce income and to provide an opportunity for growth of Morningstar Category Large Value % Bonds principal consistent with sound common stock investing. The fund invests primarily in Avg Mkt Cap $MM 71649.86 % Non-US Stocks common stocks of established companies that are listed on, or meet the financial listing Cat Med Mkt Cap $MM 45416.87 % Pref requirements of, the New York Stock Exchange and have a strong record of earnings and Net Assets $MM 62570.55 % Conv dividends. Its advisor strives to maintain a fully invested, diversified portfolio, consisting Turnover Ratio 22.00 primarily of high-quality common stocks. % Other % Assets in Top 10 Holdings 35.03 % Non-US Bonds Total Number of Holdings 157.00 _________________________________________________________________________ Manager Name Alan N. Berro 88.03 Manager Tenure 15.51 Fund Incept Date 07/31/1952 Prospectus Exp Ratio 0.30 Phone Number 800-421-4225 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 90.53 % Cash 1.48 35 % Canada 1.77 % US Stocks 88.03 % Latin America 0.00 % Bonds 0.00 % United Kingdom 4.20 % Non-US Stocks 9.20 30 % Eurozone 2.09 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 1.22 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 1.29 3 Year Mstar Rating 25 % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 10 % Middle East 0.15 5 Year Mstar Rating % Japan 0.03 % Rank Cat 5 Yr 22 20 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 46 % Asia - Emerging 0.00 15 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 10 % Basic Materials 3.18 Avg Eff Duration NA 2 180 % Communication Services 5.27 Effective Maturity NA % Consumer Cyclical 11.64 Avg Credit Quality NA 5 160 % Consumer Defensive 9.23 US Govt/ Agency NA % Healthcare 11.06 AAA NA % Industrials 21.42 AA NA 140 0 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 A NA % Technology 6.64 BBB NA 120 % Energy 13.33 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 12.39 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 5.84 Below B NA Ratio 100 American Funds Washington Mutual R6 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 Chevron Corp 5.41% 60 American Funds Washington Mutual R6 4.77 14.95 20.86 19.26 7.54 Home Depot, Inc. 5.08% S&P 500 Value 3.36 15.73 25.04 18.10 6.47 Boeing Co 4.20% 40 Universe(5%) 5.55 18.77 32.00 20.75 9.41 Merck & Co Inc 3.87% Universe(25%) 4.25 16.72 26.06 18.42 7.46 Royal Dutch Shell PLC ADR Class B 3.16% Universe(Median) 3.57 15.36 23.81 17.27 6.53 Verizon Communications Inc 3.07% 20 Universe(75%) 2.60 14.07 21.00 15.99 4.92 Union Pacific Corp 2.95% Universe(95%) 0.87 10.81 15.12 12.99 2.84 Wells Fargo & Co 2.71% 0 0 American Express Co 2.53% Prospectus Exp Ratio Turnover Ratio Johnson & Johnson 2.05% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 29

Quarterly Investment Monitor Data as of 06/30/2013 American Funds Washington Mutual R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 50 0 40 25 Total Return Rank, % 30 20 50 Total Return, % 10 75 0 -10 100 -20 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, % American Funds Washington Mutual R6 S&P 500 Value 140 120 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 100 American Funds Washington Mutual R6 25.83 9.92 3.55 18.04 3.97 -33.10 19.24 13.69 7.35 12.85 S&P 500 Value 30.36 15.03 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 80 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 6 2 18 7 0 0 20 40 60 80 100 120 140 160 180 5 16 6 Down Mkt Capture Ratio, % 4 14 Morningstar Large Value Universe American Funds Washington Mutual R6 Total Annualized StdDev, % Excess Annualized StdDev, % 3 5 12 S&P 500 Value 2 Sharpe Ratio 4 Alpha, % 1 10 1 0 8 3 Return vs. Risk -1 6 Jul-10 - Jun-13 -2 2 4 35 -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 American Funds Washington Mutual R6 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 American Funds Washington Mutual R6 4.75 0.77 93.50 1.59 11.49 4.49 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 American Funds Washington Mutual R6 Universe(95%) -4.93 0.68 87.32 0.87 10.55 1.65 Cash S&P 500 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 30

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Growth Index I 1.25 Portfolio Information Investment Strategy Summary % Cash Ticker VIGIX % US Stocks The investment seeks to track the performance of a benchmark index that measures the Morningstar Category Large Growth % Bonds investment return of large-capitalization growth stocks. The fund employs an indexing Avg Mkt Cap $MM 45355.46 % Non-US Stocks investment approach designed to track the performance of the CRSP US Large Cap Growth Cat Med Mkt Cap $MM 39161.89 % Pref Index, a broadly diversified index predominantly made up of growth stocks of large U.S. Net Assets $MM 30928.41 % Conv companies. It attempts to replicate the target index by investing all, or substantially all, of its Turnover Ratio 21.00 assets in the stocks that make up the index, holding each stock in approximately the same % Other % Assets in Top 10 Holdings 22.94 proportion as its weighting in the index. % Non-US Bonds Total Number of Holdings 417.00 Manager Name Gerard C. O'Reilly _________________________________________________________________________ Manager Tenure 18.51 98.46 Fund Incept Date 11/02/1992 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 98.75 % Cash 0.29 30 % Canada 0.08 % US Stocks 98.46 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.40 % Non-US Stocks 1.25 25 % Eurozone 0.35 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.27 % 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 0.00 % Rank Cat 5 Yr 25 15 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.14 % Rank Cat 10 Yr 32 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 3.07 Avg Eff Duration NA 2 300 % Communication Services 3.41 Effective Maturity NA % Consumer Cyclical 19.09 Avg Credit Quality NA 0 % Consumer Defensive 11.80 US Govt/ Agency NA % Healthcare 11.26 AAA NA 250 % Industrials 12.01 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 1.56 A NA % Technology 25.35 BBB NA 200 % Energy 5.93 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 6.43 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.10 Below B NA Ratio Vanguard Growth Index I CRSP US Large Cap Growth TR USD NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Apple Inc 5.48% 100 Vanguard Growth Index I 1.19 10.61 16.85 18.80 7.18 International Business Machines Corp 3.02% CRSP US Large Cap Growth TR USD 1.27 10.04 15.81 16.98 5.96 Google, Inc. Class A 2.77% Universe(5%) 4.58 16.40 25.55 19.98 10.03 Coca-Cola Co 2.15% Universe(25%) 2.93 12.68 19.50 18.18 7.29 50 Philip Morris International, Inc. 2.04% Universe(Median) 2.05 10.98 16.83 16.69 5.64 Wal-Mart Stores Inc 1.65% Universe(75%) 1.19 9.24 14.34 15.06 3.98 Oracle Corporation 1.64% Universe(95%) -0.27 6.90 10.95 12.15 1.12 Qualcomm, Inc. 1.50% 0 0 Home Depot, Inc. 1.37% Prospectus Exp Ratio Turnover Ratio McDonald's Corporation 1.32% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 31

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Growth Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 25 Total Return Rank, % 40 50 20 Total Return, % 75 0 100 -20 Jul-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-13 -40 Up/Down Market Capture Ratio 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 Growth Index I CRSP US Large Cap Growth TR USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Growth Index I 26.09 7.34 5.24 9.16 12.73 -38.19 36.50 17.17 1.89 17.04 CRSP US Large Cap Growth TR USD 31.56 6.99 6.40 10.32 15.66 -38.67 35.92 15.77 0.58 15.20 100 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 4 2 20 8 0 -25 0 25 50 75 100 125 150 175 200 225 3 18 7 Down Mkt Capture Ratio, % 2 16 Morningstar Large Growth Universe Vanguard Growth Index I Excess Annualized StdDev, % 6 Total Annualized StdDev, % 1 14 CRSP US Large Cap Growth TR USD 5 0 12 Sharpe Ratio Alpha, % -1 1 10 4 -2 8 Return vs. Risk 3 -3 6 Jul-10 - Jun-13 2 40 -4 4 1 35 -5 2 Total Annualized Return, % 30 -6 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 25 Vanguard Growth Index I CRSP US Large Cap Growth TR USD 20 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 15 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 10 Vanguard Growth Index I 1.75 0.99 99.66 1.25 14.55 0.87 5 CRSP US Large Cap Growth TR USD 0.00 1.00 100.00 1.14 14.71 0.00 Universe(5%) 3.45 1.20 98.19 1.33 18.27 7.04 0 0 5 10 15 20 25 30 35 Universe(25%) 1.12 1.08 96.84 1.17 16.40 4.64 Universe(Median) -0.54 1.03 95.25 1.07 15.50 3.57 Total Annualized StdDev, % Universe(75%) -2.00 0.97 92.63 0.98 14.48 2.84 Morningstar Large Growth Universe Vanguard Growth Index I Universe(95%) -5.07 0.84 84.99 0.77 12.91 2.15 Cash CRSP US Large Cap Growth TR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 32

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Mid Cap Index Adm 2.65 Portfolio Information Investment Strategy Summary % Cash Ticker VIMAX % US Stocks The investment seeks to track the performance of a benchmark index that measures the Morningstar Category Mid-Cap Blend % Bonds investment return of mid-capitalization stocks. The fund employs an indexing investment Avg Mkt Cap $MM 8680.21 % Non-US Stocks approach designed to track the performance of the CRSP US Mid Cap Index, a broadly Cat Med Mkt Cap $MM 6388.19 % Pref diversified index of stocks of mid-size U.S. companies. The fund attempts to replicate the Net Assets $MM 39257.21 % Conv target index by investing all, or substantially all, of its assets in the stocks that make up the Turnover Ratio 17.00 index, holding each stock in approximately the same proportion as its weighting in the index. % Other % Assets in Top 10 Holdings 5.92 % Non-US Bonds Total Number of Holdings 368.00 Manager Name Donald M. Butler _________________________________________________________________________ Manager Tenure 15.12 96.84 Fund Incept Date 05/21/1998 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 97.34 % Cash 0.51 35 % Canada 0.67 % US Stocks 96.84 % Latin America 0.00 % Bonds 0.00 % United Kingdom 1.06 % Non-US Stocks 2.65 30 % Eurozone 0.40 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.18 % 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 31 % Middle East 0.00 5 Year Mstar Rating 20 % Japan 0.00 % Rank Cat 5 Yr 33 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.35 % Rank Cat 10 Yr 16 15 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 5.55 Avg Eff Duration NA 3 300 % Communication Services 2.83 Effective Maturity NA % Consumer Cyclical 16.63 Avg Credit Quality NA 0 % Consumer Defensive 7.97 US Govt/ Agency NA % Healthcare 9.80 AAA NA 250 % Industrials 13.76 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 5.82 A NA % Technology 14.73 BBB NA 2 200 % Energy 7.03 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 10.38 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 5.50 Below B NA Ratio Vanguard Mid Cap Index Adm 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 Health Care REIT, Inc. 0.69% 1 100 Vanguard Mid Cap Index Adm 2.37 15.56 25.02 19.01 7.93 Macy's Inc 0.64% CRSP US Mid Cap TR USD 2.40 15.62 24.81 19.42 7.71 LinkedIn Corp 0.61% Universe(5%) 4.38 20.59 33.86 21.17 11.79 Mattel, Inc. 0.59% Universe(25%) 2.78 16.06 26.94 19.28 8.62 50 ConAgra Foods, Inc. 0.58% Universe(Median) 1.82 14.47 24.59 18.47 7.48 Sherwin-Williams Company 0.58% Universe(75%) 0.91 12.82 21.50 16.45 5.81 Cerner Corporation 0.57% Universe(95%) -0.16 8.46 14.30 10.89 1.81 AvalonBay Communities Inc 0.56% 0 0 Cabot Oil & Gas Corporation Class A 0.55% Prospectus Exp Ratio Turnover Ratio Delta Air Lines Inc 0.55% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 33

Quarterly Investment Monitor Data as of 06/30/2013 Vanguard Mid Cap Index Adm Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 80 0 60 25 Total Return Rank, % 40 50 Total Return, % 20 75 0 100 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 Index Adm CRSP US Mid Cap TR USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Mid Cap Index Adm 34.24 20.42 14.04 13.69 6.17 -41.78 40.48 25.59 -1.97 15.99 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 Index Adm 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 Index Adm 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 Index Adm -0.78 1.03 99.75 1.16 16.05 0.91 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 Index Adm 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45 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 Other Postemployment Benefit (OPEB) GASB 45. Milliman's work may not be provided to third parties without Milliman's prior written consent. The analysis in this report was prepared utilizing data from third parties and other sources including but not limited to internal computer software and databases. Reasonable care has been taken to assure the accuracy of the data contained herein, and comments are objectively stated and are based on facts gathered in good faith. These reports do not constitute investment advice with respect to the sale or disposition of individual securities. Unless explicitly stated in your Service Agreement, there should be no reliance on Milliman services to provide analysis or reporting on a daily basis, the changes to manager rankings, ratings or opinions thereon and are not intended to monitor investment manager compliance with individual security selection criteria, limits on security selection, and/or prohibitions to the holding of certain securities or security types. The One Year, Three Year, Five Year, and Ten Year rates of return are time-weighted annual rates. The One Month, Three Month, and Year to Date rates of return are rates for the period indicated. All returns include fund internal expenses, except sales charges, if any. The rates of return shown are for the mutual funds in which the retirement program participates, not for the plan specifically. Returns credited to individual accounts will vary due to the timing of contributions, transfers, and withdrawals. Past performance is no guarantee of future results. Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request. Milliman disclaims responsibility, financial or otherwise, for the accuracy or completeness of this report. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 46

AMENDMENT II TO THE INVESTMENT POLICY STATEMENT FOR CITY OF DOVER OPEB 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 FundedStatus AssetCategory 40% 70% 80% 85% 90% 95% 100% Cash&ShortTermBond 10% 7% 6% 5% 5% 5% 5% USTreasuries/InflationͲlinked 2% 5% 6% 7% 8% 8% 10% IntermediateTermBond 10% 11% 12% 15% 17% 21% 23% LongTermBond 10% 11% 13% 14% 15% 21% 27% HighYieldBond 8% 9% 10% 10% 10% 10% 10% LargeCapValue–USStock 11% 10% 9% 9% 8% 7% 4% LargeCapGrowth–USStock 10% 9% 9% 8% 8% 5% 4% MidCap–USStock 5% 5% 5% 5% 5% 4% 3% SmallCap–USStock 8% 8% 6% 5% 4% 3% 3% RealEstate/REIT 6% 6% 5% 5% 5% 3% 3% NonͲUSStock 10% 9% 9% 8% 7% 6% 3% EmergingMarkets 10% 10% 10% 9% 8% 7% 5% Equity 60% 57% 53% 49% 45% 35% 25% FixedIncome/Cash 40% 43% 47% 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 MidCap S&P400MidCap MidCapGrowth S&P/CitiMidͲCap400Growth SmallCapValue S&P/CitiSmallCap600Value SmallCap S&P600SmallCap SmallCapGrowth S&P/CitiSmallCap600Growth NonͲUSStock MSCIEAFE NonͲUSSmallCapStock MSCIEAFESmallCap EmergingMarkets MSCIEM(EmergingMarkets) REITS/RealEstate FTSENAREITEquityREIT

AMENDMENT II TO THE INVESTMENT POLICY STATEMENT FOR CITY OF DOVER OPEB 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: