Attachment

OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD AGENDA FEBRUARY 14, 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 November 8, 2012 2. Quarterly Performance Review (Quarter Ending December 31, 2012) (Milliman, Inc.) 3. Adjournment by 12:00 noon /js S:\AGENDAS-MINUTES-PACKETS\Misc-Agendas\OPEB\2013\02-14-2012 OPEB BOARD.wpd 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. 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 November 8, 2012 at 11:00 a.m with Chairwoman Mitchell presiding. Members present were Mr. Hare, Mrs. Williams, and Mr. Koenig. Mrs. Hawkins was absent. AGENDA ADDITIONS/DELETIONS By unanimous consent, the agenda was adopted as presented. Adoption of Minutes - OPEB Board Meeting of August 15, 2012 Mr. Hare moved for adoption of the minutes of the OPEB Board meeting of August 15, 2012, seconded by Mr. Koenig and unanimously carried. Quarterly Performance Review (Quarter Ending September 30, 2012) (Milliman, Inc.) Mr. Jeff Marzinsky, Principal and Employee Benefits Consultant, Milliman, Inc., reviewed the City of Dover OPEB Board Report dated November 8, 2012. In regard to the Market Commentary, he noted that equity markets were up approximately 30% and that a return of 8% had been projected in Milliman’s capital assumption models. He expressed “guarded optimism” about the market, explaining that unemployment and consumer sentiment had improved in the U. S.; however, advised members that international concerns remained, in connection with austerity measures being taken in the European Union. In reviewing the Performance Summary, Mr. Marzinsky noted that the assets of the plan totaled approximately $10.6M as of September 30, 3012, as indicated on Page 9. In reference to Page 10, Mr. Marzinsky advised members that the Investment Policy Review - Active Management table provided an overview of investments and their rank within categories on a scale of 0-99 (with 0 being the best and 99 the worst). He explained that this “score card” indicated that all of the active investments in the plan were performing well. Mr. Marzinsky stated that the highlighted cells in the Standard Deviation columns for the PIMCO Total Return Institutional Fund indicated that this fund was slightly more volatile than the market index; however, the returns and ranking information were strong. He explained that the information on Page 11, Investment Policy Review - Passive Management, illustrated that all index investments were following the market as they were designed to do. Referring to Page 12, Mr. Marzinsky stated that the portfolio had done fairly well during the last three (3) months, with a gross return of 4.59%. He advised members that this would change slightly in the future, in view of Milliman’s recommendation to allocate more funds to fixed income investments, which would reduce risk. He noted that the goal was to reduce the volatility of the portfolio, meet the target return, and adjust the duration of the liabilities of the plan to the duration of the assets. Approval of Amendments to Investment Policy and Changes/Additions to Investment Managers (Milliman, Inc.) Mr. Marzinsky reviewed suggested adjustments to the City of Dover OPEB Board’s investment policy and portfolio. Referring to Page 13 of the City of Dover OPEB Board Report, Mr. Marzinsky explained that the Asset Category table showed the asset allocation and target returns of the portfolio

OPEB MEETING OF NOVEMBER 8, 2012 PAGE 2 following the adjustments to the plan made by the Board during their meeting of August 15, 2012. He noted the suggested inclusion of thresholds above and below the target to which asset categories could go up or down before rebalancing would be necessary. Mr. Marzinsky stated that as the plan achieves a better funded position, risk would be reduced and fixed income investments would be increased, which would “immunize” the portfolio. He explained that the Dynamic Investment Policy on Page 13 set thresholds for the future funding status of the plan. He advised members that the plan was approximately 11% funded, noting that the OPEB fund was begun only in the last few years and that a long period of time would be needed to achieve 100% funded status. Mr. Marzinsky projected that adjustments to the ratio of equities to fixed income investments/cash would be made when the plan achieved 70% funding. He noted that the asset allocation of the portfolio and capital market assumptions would be examined periodically to determine if the 7% target for returns that was established when the portfolio was developed was still reasonable. He advised members that the goal was to tie together the duration of the assets of the plan to the duration of the projected cash flows from the plan. Mr. Marzinsky explained that the Fund Changes Required to Meet Allocation Policy on Page 13 reflected how the individual investments would be allocated into funding categories, noting that some investment categories and investment funds would be added to the plan. He stated that he had spoken with Wells Fargo and confirmed that the recommended investments were available on their platform. Noting that there was talk of many municipalities going bankrupt and the possibility of government bailouts and debt forgiveness, Mrs. Williams questioned if municipalities who have been responsible by planning ahead, like the City of Dover, would be penalized in this regard. Responding, Mr. Marzinsky stated that he was unsure how this possibility could impact the plan or the potential legal effect on the City. He indicated that he did not believe that there was a State required minimum level of funding; however, he explained that funding of the plan was the City’s commitment to the participants and beneficiaries. Mrs. Mitchell cautioned that failure by the City to act responsibly in regard to funding the OPEB plan could negatively impact the City’s bond rating, which would cause an increase in interest rates and the cost of borrowing funds. Mr. Marzinsky explained that suggested changes were incorporated in Amendment I to the Investment Policy Statement for the City of Dover OPEB Board for members’ consideration. Mr. Hare moved to approve Amendment I to the Investment Policy Statement for the City of Dover OPEB Board (Attachment #1), seconded by Mrs. Williams and unanimously carried. Mr. Hare moved for adjournment, seconded by Mrs. Williams and unanimously carried.

OPEB MEETING OF NOVEMBER 8, 2012 PAGE 3 Meeting Adjourned at 11:27 A.M. Donna S. Mitchell Chair DM/JS/mk/dd/tm S:\AGENDAS-MINUTES-PACKETS\Misc-Minutes\OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD\2012\11-08-2012 OPEB.wpd Attachment Attachment #1 - Amendment I to the Investment Policy Statement for the City of Dover OPEB Board

ATTACHMENT #1 OPEB Board Meeting of 11/08/2012 The City of Dover OPEB Fund Investment Policy Statement Effective Date: July 2010 Amended: November 8, 2012

Table of Contents INTRODUCTION ....................................................................................................................................................... 3 PURPOSE OF THE STATEMENT ......................................................................................................................... 3 PLAN DESCRIPTION ............................................................................................................................................. 3 PORTFOLIO MANAGEMENT PRECEPTS .......................................................................................................... 3 STANDARD OF CARE ........................................................................................................................................... 4 RESPONSIBILITIES OF THE BOARD AND STAFF ........................................................................................... 4 RESPONSIBILITIES OF ANY INVESTMENT MANAGER(S) ........................................................................... 5 RESPONSIBILITIES OF THE FUND CUSTODIAN(S) ........................................................................................6 RESPONSIBILITIES OF THE INVESTMENT CONSULTANT ...........................................................................7 INVESTMENT OBJECTIVES .................................................................................................................................. 8 INVESTMENT POLICY ............................................................................................................................................ 9 ASSET ALLOCATION ........................................................................................................................................... 9 ALLOCATION MONITORING/REBALANCING ................................................................................................ 9 LIQUIDITY ............................................................................................................................................................ 10 DIVERSIFICATION .............................................................................................................................................. 10 PROXY VOTING .................................................................................................................................................. 10 INVESTMENT GUIDELINES ................................................................................................................................ 11 GENERAL GUIDELINES ..................................................................................................................................... 11 MUTUAL AND OTHER COMINGLED FUNDS…............................................................................. 12 DOMESTIC EQUITY INVESTMENT GUIDELINES ......................................................................................... 12 Specific Guidelines, Domestic Equity ................................................................................................................ 13 INTERNATIONAL/GLOBAL EQUITY INVESTMENT GUIDELINES... ............................................... 13 Specific Guidelines, International/Global Equity ............................................................................................... 14 DOMESTIC FIXED INCOME INVESTMENT GUIDELINES............................................................................ 14 Specific Guidelines, Domestic Fixed Income ..................................................................................................... 15 Specific Guidelines, Cash ................................................................................................................................. 16 REVIEW PROCEDURES ........................................................................................................................................ 17 SIGNATURES ........................................................................................................................................................... 18 AMENDMENT 1 ....................................................................................................................................................... 19 2 of 20

INTRODUCTION Purpose of the Statement Based upon, and in keeping with requirements governing the conduct of employees and fiduciaries serving as members of the Board of Trustees of the City of Dover OPEB Fund (“Board”), this Investment Policy Statement ("Statement") presents objectives, policies, guidelines, monitoring and review procedures relating to all assets of the City of Dover OPEB Fund (collectively, the “Plan”). The Plan’s investment program shall be operated in conformance with federal, state, and all other legal requirements. The Statement's purpose is to: 1) Present appropriate goals and objectives relating to the assets of the Plan available for investment (“Fund”). 2) Recognize and/or specify liquidity and diversification requirements and identify any legal constraints affecting investment management of the Fund. 3) Promulgate guidelines, consistent with any Board-selected investment time horizon(s), Investment Manager classifications, and/or Investment Manager styles to which any Board- appointed Investment Manager(s) (an “Investment Manager”) shall adhere when determining investment strategies, making periodic investment decisions, and/or undertaking specific investment transactions relating to the portion of the Fund managed by that Investment Manager (“Account”). 4) Establish standards and procedures for monitoring, measuring, reviewing, and evaluating any Investment Manager(s) and/or Board-appointed Fund custodian’s (“Custodian”) investment performance and/or safekeeping of assets and Fund expenses in accordance with investment policies, goals, objectives, guidelines, and/or constraints. 5) Foster understanding and effective communication between the Board and Staff, and any persons appointed, employed, designated or in any way called upon by the Board or Staff to serve the Fund and the Plan’s participants and/or beneficiaries. Plan Description The City of Dover OPEB Plan is a post retirement employee benefit program established for the purpose of funding retiree health care and life insurance as provided for in Article VI of Chapter 2 of the City Ordinances. The OPEB fund shall constitute a trust fund that shall be separate and distinct from all other funds, including the pension funds established by Article IV of Chapter 2 (General Employee Pension Plan) and Article III of Chapter 62 (Police Pension Plan) of the City Ordinances (City Code). Portfolio Management Precepts The Board endorses contemporary investment practices, based upon the construction of well- diversified multi-asset portfolios, which facilitate control of investment risk and afford reasonably predictable long-term investment returns. 3 of 20

Standard of Care 1. Prudence The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. The “prudent person” standard states that, “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” Guidelines respecting Prudence have been developed in light of investment objectives related solely to the Plan’s varied and dynamic obligations to its participants and beneficiaries. Actuarial, economic, investment, and socio-political events and trends are factors that affect meeting those obligations. Accordingly, these guidelines are, as a part of this Statement, intended to present broad and balanced considerations to guide incumbent and successor Boards and Staffs, and all other parties concerned, seeking appropriate allocation, investment, safekeeping, monitoring and evaluation of the Fund. 2. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose to the full Board and Board counsel, any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the Plan. 3. Delegation of Authority Authority to manage the Accounts comprising the Fund is granted to the Investment Manager(s). Responsibility for the operation of the investment program is hereby delegated to the Investment Manager(s), who shall act in accordance with established written procedures and internal controls for the operation of the investment program consistent with this Statement. Procedures should include references to: safekeeping, delivery vs. payment, investment accounting, repurchase agreements, wire transfer agreements, and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Manager(s). The Investment Manager(s) shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Responsibilities of the Board and Staff The Board is charged with overall responsibility for investment of Fund assets. To assist the Board in this function, the Board is authorized and permitted to appoint Investment Manager(s), to manage (including the power to acquire and dispose of) the Fund. Any appointed Investment Manager(s) must agree to act in accordance with all applicable state and federal laws. 4 of 20

The Board must also develop policies and guidelines regarding Fund investments. Policies and guidelines are inclusive of, but not restricted to: 1) Establishment of Investment Objectives, Investment Policy, Investment Guidelines, and Review procedures, as set forth herein. 2) Establishment of standards for measuring, monitoring, evaluating and comparing investment performance of the Fund to assure that investment returns are reviewed on a regular basis. 3) Establishment of authorization, reporting, control, review and general governance procedures to assure that Fund investment policies and guidelines are reviewed on a regular basis and conformed to at all times. All modifications of policies and/or guidelines shall be in writing, signed by appropriate Board signatories, and delivered forthwith to any Investment Manager(s) and/or Custodian(s) affected by such changes. 4) Establishment of, through contractual relationships with professional organizations, or by alternative means satisfactory to the Board, an OPEB Fund management structure which will assure appropriate investment management, custody, and compliance procedures to seek to meet objectives in conformity with the Board’s stated investment policies and guidelines. 5) Establishment of standards for review of fees of the Investment Managers and Custodians. 6) The Board shall examine this Statement from time to time and make appropriate revisions. 7) The Board may consult with legal counsel as necessary. Responsibilities of Any INVESTMENT MANAGER(s) The management of any Account consisting of Fund assets and the responsibilities for investment decisions for that Account are delegated to the Investment Manager(s) appointed by the Board to manage that Account. An Investment Manager(s) shall exercise complete discretion with respect to the Account (or Accounts) within the limits established by this Statement. Accordingly, the Investment Manager shall comply with all applicable laws as they now apply, or as they may apply in the future. Applicable terms, conditions, limitations and restrictions notwithstanding, any Investment Manager(s) serving the Fund shall discharge any duties relating to the Fund solely in the interest of Plan participants and beneficiaries, shall demonstrate appropriate knowledge of the Fund's purpose and contemporary operations, and shall diversify the investments of all Accounts so as to minimize the risk of substantial loss. When contemplating any investment, investment strategy or investment course of action, and/or any securities transaction, an Investment Manager managing an Account shall consider all relevant factual and circumstantial information and the impact of such information upon a particular investment, strategy, or program, and upon the Account. Further, respecting investment strategies, and/or courses of action for the Fund, any Investment Manager shall also consider: 1) Potential losses and gains; and 5 of 20

2) The composition of the Account with regard to: a) Diversification; b) Liquidity and current return relative to the Plan’s cash flow requirements; and c) Projected total return relative to the Plan’s funding objectives. Guidelines respecting Prudence have been developed in light of investment objectives related solely to the Plan’s varied and dynamic obligations to its participants and beneficiaries. Actuarial, economic, and investment, events and trends are factors that affect meeting those obligations. Accordingly, these guidelines are, as a part of this Statement, intended to present broad and balanced considerations to guide incumbent and successor Boards and Staffs, and all other parties concerned, seeking appropriate allocation, investment, safekeeping, monitoring and evaluation of the Fund. All investment performance data submitted to the Board or to any designee thereof directly or indirectly by or on behalf of any Investment Manager(s) shall, as applicable, be submitted in conformity with the Performance Presentation Standards and/or Global Investment Performance Standards promulgated by the CFA Institute. The delegation of discretion for the management of the Fund and responsibilities for investment decisions shall be limited by the provisions of this Statement. When appointing Investment Manager(s), the Board shall require the Investment Manager(s) to covenant that it shall adhere to Delaware Fiduciary Standards, as well as any other Delaware and Federal laws as now apply or may apply in the future. Fiduciary insurance, and officer liability and omissions and errors insurance coverage, of any Investment Manager(s) must meet standards set by the Board from time to time. If, at any time, an Investment Manager(s) believes that this Statement inhibits its investment performance, it is the Investment Manager’s responsibility to communicate this view to the Board and the Investment Consultant. In addition, the Investment Manager will promptly notify the Board and Investment Consultant, in writing, regarding all material or significant changes, including but not limited to: 1) Material changes in investment strategy, portfolio structure, tactical approaches, and market value of managed assets; 2) Material changes in ownership, organizational structure, financial condition, and/or professional staff of the Investment Manager; and 3) All material legal, SEC, and other regulatory proceedings affecting the Investment Manager or its affiliates. RESPONSIBILITIES OF THE FUND CUSTODIAN(S) Any Custodian(s) appointed by the Board shall be responsible for safekeeping of the Fund, including all security transaction settlements and deliveries, and for comprehensive recordkeeping and reporting, which shall include any custom recordkeeping, record retention, or 6 of 20

reporting reasonably required by the Board or its representatives. Ready access to information by the Board and Staff shall be a prime requisite of recordkeeping and reporting services. Transaction records shall be maintained on a trade date basis. Asset pricing should be daily and reported not less often than monthly. Custodians and Investment Managers should use nationally accepted asset pricing services. Safety and continuity of operations shall be the primary objectives of any Custodian. Timely, accurate, and complete recordkeeping and reporting shall be the primary benchmarks for evaluation of Custodian performance. Fund safekeeping and securities settlement procedures shall include direct Custodian participation in one or more appropriate securities depositories (e.g., Depository Trust Company, New York) and, as necessary, correspondent participation in other major depositories (e.g., the Federal Reserve System). All Fund assets shall be held in the name of the Plan or held for the express benefit of the Plan and segregated on the books and records of Custodian, without rights of set-off or other liens. Board or designated Investment Managers’ authority to direct all investment transactions shall be protected. RESPONSIBILITIES OF THE INVESTMENT CONSULTANT The Board may utilize the services of an investment consultant for the purpose of performance review, asset allocation studies, manager screening and selection and topical studies, or any other service deemed necessary and agreed upon by the Board and Investment Consultant. The comments and recommendations of the consultant will be considered by the Board in conjunction with other available information for the purpose of making an informed and prudent decision. 7 of 20

INVESTMENT OBJECTIVES Investment objectives are long-term in nature. Given the Board’s assumptions respecting current and projected Plan and capital market conditions, the Fund objectives are: 1) Fund fiduciaries shall discharge their responsibilities and assets shall be invested in a manner consistent with this Statement, and applicable law. Further: (1) all transactions undertaken on behalf of this Fund shall be solely in the interest of the Plan participants and their beneficiaries, and (2) with reference to applicable law, and (3) liquidity and current return consistent with rationally anticipated cash flow requirements of the Plan, shall be governing factors in all investment considerations. 2) Consideration shall be given to providing adequate and timely Fund cash flows to meet anticipated Plan benefit payments, with sufficient reserves to meet unanticipated benefit payments; adequate emphasis, consistent with the foregoing, shall be placed upon current investment return. The Board recognizes that short-term assets for current benefit payments are a substantially greater percentage than those of the pension fund. 3) Consideration shall also be given to, granting conformity with the objectives of 2., above, suitable long-term Fund investment intended to provide capital and income growth. The Board anticipates that such capital and income growth will be achieved during each economic and/or securities market cycle, generally three to five (3-5) years. 4) While professional managers may strive to record positive rates of investment return during all measurement periods, securities markets are unlikely to provide a consistently favorable climate, on a shorter-term basis, for longer-term investments. Therefore, the Board sets forth the following investment objectives for comparative or benchmark measures of Fund investment return, and risk or volatility, delineated as follows: a) The Board desires to achieve a positive real (post-inflation) Fund rate of return during any multi-year period and over the life of the Fund. Based upon current and projected Plan and capital market conditions, the Board has set returns meeting or exceeding the Plan’s actuarial rate of return assumption at any time, annualized, as the multi-year return target. The Board’s target return for the Fund is an annualized 7.5% percent. b) Consistent with the target return in a. above, annualized Fund investment performance, for periods of five (5) years, is desired to meet or exceed the Plan's assumed actuarial rate of return and to meet or exceed the annualized investment performance of a Fund "policy index" comprised of a weighted average of relevant asset-class indices. c) Consistent with b., above, the Fund’s investment return volatility, as measured by the standard deviation of Fund quarterly investment returns, is desired to not exceed the volatility of the Fund policy index during any five (5) year measurement period. 5) Investment performance objectives for the Fund are, as stated initially under Investment Objectives, above, long-term in nature. Concern respecting market value or Fund investment return volatility and other measures reflecting investment uncertainty, will be addressed by functional constraints imposed by the Board through asset (class) allocations, investment management processes or “styles” chosen, portfolio diversification requirements, and other investment management guidelines and/or limitations, as more fully set forth herein. 8 of 20

INVESTMENT POLICY Investment Policy delineates controls and the associated monitoring intended to enhance the likelihood of meeting Investment Objectives: ASSET ALLOCATION Asset class allocation, resulting in so-called asset mix, is intended to afford an appropriate approach toward Fund Investment Objectives while limiting investment risk by providing basic diversification. The percentages of asset classes delineated below provide a framework through which the Fund’s investments may be adjusted to meet economic and/or investment market conditions while remaining centered on the allocation target deemed appropriate to the Fund’s long-term Investment Objectives. Asset Class Minimum % Target % Maximum % Benchmark Domestic Equity 49 54 59 Russell 3000 International Equity 9 14 19 MSCI EAFE (net) Fixed Income 27 32 37 Barclays Intermediate Govt/Credit The above target allocation is for the investable assets only. The city will keep a cash reserve in a separate account that will pay benefits for each fiscal year. In the event an Investment Manager invests in more than one asset class, for example, a balanced manager or global equity manager, the manager’s allocation to each asset class will be attributed to that particular asset class. For example, if a global equity manager is allocated 10% of the total fund and invests 60% of their allocation in international equities, 60% of their allocations will be attributed to international equities and therefore, 6% of the total fund allocated to international equities, while the remaining 40% will be attributed to domestic equities and therefore 4% of the total fund allocated to domestic equities. ALLOCATION MONITORING/REBALANCING The Board or its designee(s) shall review asset allocation quarterly to monitor Fund asset allocation targets. In the event that asset allocations fall moderately outside the ranges in the tables above, the appointed Custodian(s) and Investment Manager(s) may, in the Board’s discretion, be notified and instructed by the Board to adjust cash flows to return the Fund to appropriate asset allocation levels. Should an allowable range be breached substantially, the Investment Manager(s) involved may be required by the Board to adjust assets immediately, as determined by the Board in its discretion. The Board may consider a variety of factors in exercising its discretion, including but not limited to: 1) the short-term and long-term goals and needs of the Plan and its participants; 2) the recommendation of each of the Investment Manager(s) involved; 9 of 20

3) current market conditions, including liquidity and price, for selling the securities involved; 4) market forecasts or expectations going forward for short, medium and long-range periods; and 5) risks involved in holding the excess investments and the overall risk tolerances of the Plan. The Board may set asset allocation ranges for individual Investment Manager(s) different from ranges for the Fund. Liquidity Emphasis shall, per Investment Objective, 3, above, page 9, be placed on providing adequate and timely Fund cash flow to permit benefit payments from the Plan when due. The Board endeavors to meet the Fund’s multiple Investment Objectives through asset allocation and constructive Investment Guidelines. Nevertheless, any Investment Manager(s) appointed by the Board shall be responsible for seeking, no less frequently than annually, from the Board or its designee(s) current information respecting Fund cash flow requirements and for assisting in meeting said requirements. Diversification Fund investments must be diversified broadly to minimize the risk of substantial loss. The Board recognizes that significant diversification is accomplished through asset allocation and the selection of investment management organizations. Nevertheless, the Investment Guidelines which follow include certain specific constraints intended to optimize investment diversification. Proxy Voting Matters of political and public interest as well as corporate governance have long been a part of Annual Meetings and proxy activity in the United States. The Board adheres to a policy of proxy voting intended to protect the long-term value of the equity securities represented in each vote, provided said vote, when exercised, would be solely in the interest of Plan participants, retirees and beneficiaries. The Board delegates proxy voting authority to any Investment Manager, but if the Board deems it necessary, can take back the authority at any time by notice to the Investment Manager in writing. 10 of 20

INVESTMENT GUIDELINES Investment Guidelines describe for the guidance of Fund Investment Manager(s) and for the information of the Fund Custodian(s) a range of permissible investment activities and choices while also delineating, specifically or by broader proscription, those which are not permissible. Investment Guidelines for the Fund appear below. Each individual Investment Manager is expected to select equity investments in conformity with criteria normally applied in its decision making process and previously reviewed and approved by the Board. Different guidelines and benchmarks may be assigned to individual Investment Managers by written authority of the Board. Any departure from the Guidelines must be submitted in writing to the Board for prior approval, as must any change in the "style" or investment philosophy, process, or practices approved by the Board at the time any Investment Manager was retained to serve the Plan. General Guidelines Subject to the asset allocation ranges set forth as a table within Investment Policy, above, or separate asset allocation ranges assigned specifically to any Investment Manager(s) by the Board, any Investment Manager is expected to undertake discretionary management of any Fund portfolio. Nevertheless, when responsible for any Fund investment portfolio, the Investment Manager(s) shall report immediately to the Board or its designees any shift between or decrease in market value of asset classes during any calendar quarter which equals or exceeds ten (10) percent of the market value of the assets assigned to the Investment Manager(s). For the purpose described herein, cash and money market or cash equivalent securities shall be considered an asset class. 1) Full discretion, consistent with the Investment Objectives, Investment Policies, and Investment Guidelines set forth in this Statement, is granted to each Investment Manager. 2) Each Investment Manager shall select investments in conformity with criteria normally applied in its decision making process and previously reviewed and approved by the Board. 3) Investment Manager(s) are expected to purchase readily marketable securities. 4) Any Investment Manager(s) serving as active manager may be assigned indices or other types of benchmarks deemed suitable for them and agreed upon with the Board; as a general expectation those Investment Managers should exceed their assigned benchmarks, post fees, on an annualized basis over periods of three (3) years or more. 5) Any security purchased in conformity with the standards for securities cited in 2. above, but no longer meeting a specific, per-security Investment Guideline standard, and/or by marginal effect causing portfolio non-compliance, may, in lieu of immediate sale, be reported to the Board with background information and an intended future course of action by any Investment Manager(s). The Board may, upon review and at its discretion, approve temporary or indefinite retention or, in the Board’s best judgment, order disposition of the security and a return to full compliance with the Investment Guidelines. The Board may consider a variety of factors in exercising its judgment, including but not limited to: 11 of 20

a. the short-term and long-term goals and needs of the Plan and its participants; b. the recommendation of each of the Investment Manager(s) involved; c. current market conditions, including liquidity and price, for selling the securities involved; d. market forecasts or expectations going forward for short, medium and long-range periods; and e. risks involved in holding the excess investments and the overall risk tolerances of the Plan. For any individual Investment Manager(s), securities retained under such circumstances shall constitute no more than five (5) percent of the market value of securities (5 percent “basket clause”). The Board has determined that the following investments and investment practices are not suitable for the Fund and thus are prohibited: 1) Buying or (short) selling securities on margin, and/or the use of any other form of leverage, including the lending of securities, unless approved in writing in advance by the Board. 2) Privately placed or otherwise unregistered securities excepting fixed income securities, issued under SEC Rule 144(a), which are demonstrably marketable and otherwise within guidelines. 3) Investment in commodities or in any type of commodities contracts, forward, or futures trading activities, and all forms of portfolio hedging, excepting the limited use of stock options and/or currency hedges; (See Domestic Equity, International Equity, and Fixed Income Investment Guidelines, below.). 4) Investments may not include deep discount or zero coupon (excepting U.S. Treasury) securities, tax-exempt, derivative or synthetic securities, such as collateralized debt obligation (CDOs), credit default swaps (CDS), interest rate swaps and any total return swaps. Certain exceptions are delineated below (see Domestic Fixed Income Investment Guidelines, page 16-17.) MUTUAL AND OTHER COMMINGLED FUNDS The Fund (and any Account) may include, in whole or in part, an investment in a mutual fund or other commingled fund. The Board recognizes that there may be deviations between the objectives, intent or specific requirement of this Statement and the stated objectives, intent or content of any mutual fund or other commingled fund. However, every effort shall be made, to the extent practicable, prudent and appropriate, to select mutual or other commingled funds that have investment objectives and policies that are consistent with this Statement. DOMESTIC EQUITY INVESTMENT GUIDELINES The Board shall review the Fund at least quarterly to assure that the domestic equity limit of fifty nine (59) percent of Fund market value is not exceeded; as necessary, the Custodian(s) may, in 12 of 20

the Board’s discretion, be instructed to redirect cash flows to the Investment Manager(s), or to accommodate Board-directed Investment Manager(s) asset allocation revisions, to restore the Asset Allocation currently approved by the Board. Permissible equity investments shall include convertible securities, which shall be limited to ten (10) percent of Fund assets at market value, as well as American Depositary Receipts (ADRs), equally limited. Periodic dislocations in the equity and fixed income markets may present opportunities for the Investment Manager(s) to take certain securities positions within the domestic equity portion of the Fund’s portfolio that, in its opinion, benefit the Plan. Under those market conditions and at the discretion of the Investment Manager(s), the Investment Manager(s) may invest up to five (5) percent of their equity portfolio in fixed income securities rated investment grade by at least two of the following three rating agencies: Standard and Poors, Moody’s and Fitch. Investment Manager(s) shall conform to the Domestic Equity Investment Guidelines set forth above and below. Specific Guidelines, Domestic Equity 1) No Investment Manager shall invest initially on a market value basis more than five (5) percent of the equity portion of any portfolio in the equity securities of a single corporation or group of directly affiliated corporations nor maintain an investment of more than eight (8) percent similarly calculated. 2) No Investment Manager may make or maintain an investment equaling or exceeding ten (10) percent ownership of the outstanding equity securities of a single corporation, or group of directly affiliated corporations, without the written consent of the Board. 3) As an exception to the general prohibition against so-called alternative investment instruments, stock options may be utilized by an Investment Manager(s) managing domestic U.S. equity securities in “covered” or hedging postures but not in “naked” or speculative postures. 4) The total annualized investment return from all domestic equity investments of the Fund is expected to meet or exceed, post fees, the total annualized return of the Russell 3000 Stock Index for cumulative periods three (3) years or more. INTERNATIONAL/GLOBAL EQUITY INVESTMENT GUIDELINES The Board shall review the Fund at least quarterly to assure that the International Equity limit of nineteen (19) percent of Fund market value is not exceeded; at the discretion of the Board, the Custodian(s) may be instructed to redirect cash flows to the Investment Manager(s), or to accommodate Board-directed Investment Manager(s)’ asset allocation revisions, to restore the asset allocation currently approved by the Board. Stated percentages may include foreign equity securities admitted to trading on U.S. Stock Exchanges or NASDAQ; American Depositary Receipts (ADRs) shall be designated as international equities. 13 of 20

Specific Guidelines, International/ Global Equity 1) Excepting mutual or commingled funds approved by the Board, investing in emerging market equity securities is permissible up to a maximum of twenty (20) percent of any International Equity Investment Manager’s (IEIM) international equity portfolio at market value. As applicable; proper global, regional, national, industry and individual security diversification must be maintained at all times. 2) No IEIM shall invest initially on a market value basis more than five (5) percent of the equity portion of any portfolio in the equity securities of a single corporation or group of directly affiliated corporations nor maintain an investment of more than eight (8) percent similarly calculated, without written consent of the Board. 3) No IEIM may make or maintain an investment equaling or exceeding ten (10) percent ownership of the outstanding equity securities of a single corporation, or group of directly affiliated corporations, without the written consent of the Board. 4) As an exception to the general prohibition against so-called alternative investment instruments, stock options may be utilized by IEIM (s) managing international equity securities in “covered” or hedging postures but not in “naked” or speculative postures. 5) Because an active currency hedging strategy may reduce risk of loss and/or enhance IEIM investment performance, hedging to protect against currency impact upon a security position is permissible. Nevertheless, the purchase of speculative or “naked” currency contracts (i.e., “currency trading” or related risk taking), undertaken without a demonstrable exposed investment position to be hedged in a specific currency, is prohibited. 6) The annualized total investment return from all International Equity investment(s) of the Fund is expected to exceed, after fees, the annualized total return of an appropriate benchmark, to be agreed upon by any IEIM and the Board, for annualized periods of three (3) years or more. In the absence of another selected benchmark, the Morgan Stanley C.I. “EAFE” Index shall serve as benchmark. DOMESTIC FIXED INCOME INVESTMENT GUIDELINES The Board shall review the Fund portfolio at least quarterly to assure that the domestic fixed income securities market value limit of thirty seven (37) percent is not exceeded. At the discretion of the Board, the Custodian(s) may be instructed by the Board to redirect investment and/or contribution cash flows to the Investment Manager(s), or to accommodate immediate Board-ordered Investment Manager(s) portfolio structure revisions, to restore the asset allocation currently approved. The Investment Manager(s) shall conform to the Fixed Income Investment Guidelines set forth above and below. 14 of 20

Specific Guidelines, Domestic Fixed Income 1) Suitable fixed income investments include, but are not limited to, U.S. Treasury and Agency securities, taxable municipal securities, marketable debt securities of U.S. corporations, U.S. certificates of deposit and banker’s acceptances, and commercial paper or other generally utilized money market or cash equivalent investments, including money market mutual funds meeting the quality standards delineated below. 2) Investment Managers are given latitude in security selection subject to the following restrictions: a) No issuer, other than the U.S. Government or other Federal agencies, may represent more than five (5) percent of the total market value of the fixed income portfolio managed by any Investment Manager(s). b) The following areas are individually restricted to no more than the below noted percentages of the fixed income portfolio managed by any Investment Manager(s). i) Mortgage Backed Securities – 30 percent ii) Zero Coupon Bonds (US Treasury only) – 20 percent iii) Baa or fourth investment grade bonds – 30 percent iv) Foreign fixed income securities, if rated A or above, including Canadian securities denominated in U.S. dollars (i.e., foreign “Yankee” and Canadian U.S. pay securities) – 20 percent v) Securities whose price movements are exacerbated by interest rate changes or principal prepayments, including but not limited to: range accrual notes, IO’s, PO’s – 20 percent c) In no event may securities not in any Investment Manager’s benchmark exceed 30 percent of the Investment Manager’s fixed income portfolio. 3) At no time shall margin or other leveraged transactions, short sales, forward or futures trading, or any form of portfolio hedging be employed in the management of fixed income investments without prior written approval of the Board. 4) The average quality of fixed income securities purchased by any Investment Manager(s) shall equal or exceed A2, the third broad investment grade as determined by Moody's. 5) The minimum quality of any single fixed income investment shall be investment grade as defined by two out of three of the following rating agencies; Moody’s, Standard and Poors, or Fitch. If an investment is made in commercial paper, the single standard shall be A1 or P1, or “Prime.” 6) The effective duration of fixed income securities, said average including any investments considered to be reserve or cash equivalent assets specific to any fixed income portfolio, shall be no more than 25 percent greater or less than the effective duration of the policy benchmark designated on page 11. 7) There shall be no limit upon investment in U.S. Treasury securities as a percentage of fixed income investments at cost or market value, except that any single coupon issue thereof may constitute no more than thirty (30) percent of any Investment Manager(s)’ fixed income investments at market value and any single Treasury zero coupon issue ten (10) percent at 15 of 20

market value. Federal Agency securities are hereby limited to fifty (50) percent of fixed income investments at market value, twenty-five (25) percent per agency, and to ten (10) percent, at market value, per any single Federal Agency issue. 8) The total annualized investment return from all fixed income investments of the Fund is expected to meet or exceed, post fees, the total annualized return of the benchmark designated on page 11, for cumulative three (3) year periods. Specific Guidelines, Cash 1) Investment Objective Short-term investments are intended to be conservative and meet any necessary disbursements of the Plan and to accumulate funds for future investment. The short-term investments will be expected to provide returns, post fees, at least equal to the 90 Day U.S. Treasury Bill Index. 2) Permitted Activity Short-term investments are a permitted class of assets provided they fall within one or more of the following categories: a) U.S. Government securities (backed by the faith and credit of the U.S. Government) and U.S. Agency obligations; b) certificates of deposit, maturing within 12 months, of any domestic bank meeting the capital standards mandated by the FDIC Improvements Act of 1991, provided that such certificates of deposit from one institution shall not represent more than 5% of the assets of the short-term investment account; c) commercial paper, maturing within 9 months, of any domestic issuer, provided that such commercial paper shall be rated not less than A-1 by Standard & Poor or Prime 1 by Moodys; d) repurchase agreements secured by U.S. Government or U.S. Agency obligations; e) high grade bankers acceptance; f) commingled accounts offered by banks or mutual funds that are designed for cash management strategies; and g) corporate bonds maturing within 12 months, provided that they are rated not less than A by S&P or A2 by Moody’s. 3) Prohibited Activity Unless specifically approved otherwise by the Board in writing, no short-term investment account shall engage or invest in any of the following and no commingled fund in which the Plan invests as a short-term vehicle shall in the aggregate substantially invest or engage in the following: a) options or futures contracts; b) non-marketable securities; and c) margin transactions or any other borrowing of money except for emergencies, such as a need for a commingled fund to meet redemption requests. 16 of 20

REVIEW PROCEDURES All Investment Policies, Objectives and Guidelines contained in this Statement shall be reviewed by the Board annually, or whenever circumstances occur that may, in the judgment of the Board, significantly affect the Fund. The Board shall notify the Investment Consultant, any appropriate Investment Manager, and/or the Fund Custodian of any changes and/or additions to this Investment Policy that, in the judgment of the Board, are deemed appropriate. 1. Investment performance will be reviewed quarterly. 2. Fund, asset class (e.g. domestic equity, international equity, domestic fixed income), and asset sub-class and/or “style” returns shall be compared to returns of comparable professionally managed tax-exempt balanced, equity and fixed income portfolios or collective or mutual funds as well as to benchmark indices or index composites and evaluation of the risk/reward posture of the investment. 3. It is expected that the investment performance of any Investment Manager(s) will rank above agreed upon benchmark medians over periods of three (3) or more years and will meet or exceed the Investment Objectives previously identified in this Statement. Investment Manager(s) are instructed to keep the Board and consultant abreast of any material changes in firm structure, ownership, management and investment team. Any Investment Manager(s) failing to keep pace with stated performance norms may be placed on probation and evaluated as to whether it is in the best interest of the Fund to have the Board retain the services of said Investment Manager(s). 4. Notwithstanding the provisions of the preceding paragraph, the Board reserves the right to terminate a relationship with any Investment Manager(s) at any time, subject to the terms of any investment advisory agreement, if the Board determines that said action is warranted. In addition, the Board reserves the right to remove assets from any Investment Manager’s Account, in part or in whole, at any time. 5. Investment Manager(s) shall provide statements of assets under management to the Board quarterly, and shall also comply with reasonable additional requests from the Board, including details of any/all securities transactions and /or “soft dollar” payments if said payments are made at official Board request and/or arise from transactions involving the Fund’s assets. 6. Investment Managers of individually managed portfolios shall meet with the Board at least annually, if requested by the Board, to review the Fund and any respective Accounts, and to discuss investment results in the context of all of the goals Investment Objectives, and Investment Guidelines set forth in this Statement. Such meetings may take place in person, or over the Internet, or by conference call. 7. The Board will periodically review plan fees and expenses, including, but not limited to, investment management and custodial fees and expenses. 17 of 20

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AMENDMENT 1 OPEB INVESTMENT POLICY STATEMENT 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. Dynamic Investment Policy Funded Status Asset Category 40% 70% 80% 85% 90% 95% 100% Cash & Short Term Bond 5% 5% 5% 5% 5% 5% 5% US Treasuries/Inflation‐linked 2% 3% 4% 6% 7% 8% 10% Intermediate Term Bond 11% 11% 12% 12% 13% 16% 18% Long Term Bond 22% 24% 26% 28% 30% 36% 42% Large Cap Value – US Stock 10% 10% 9% 9% 8% 7% 4% Large Cap Growth – US Stock 10% 9% 9% 8% 8% 5% 4% Mid Cap – US Stock 5% 5% 5% 5% 5% 4% 3% Small Cap – US Stock 5% 5% 4% 3% 3% 3% 3% Real Estate/REIT 5% 5% 4% 4% 3% 3% 3% Non‐US Stock 10% 9% 9% 8% 7% 6% 3% Emerging Markets 15% 14% 13% 12% 11% 7% 5% Equity 60% 57% 53% 49% 45% 35% 25% Fixed Income/Cash 40% 43% 47% 51% 55% 65% 75% 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. Asset Category Index Cash & Money Market CitiGroup 3 Month TBill Short‐term Bond BofA Merrill Lynch 1‐3 Yr Corp Index Intermediate‐term Bond BarCap Interm US Govt/Credit Index Long‐term Bond BarCap Long GovtCredit Index Large Cap Value S&P/Citi 500 Value Large Cap Blend S&P 500 Index Large Cap Growth S&P/Citi 500 Growth Mid Cap Value S&P/Citi Mid‐Cap 400 Value Mid Cap S&P 400 Mid Cap Mid Cap Growth S&P/Citi Mid‐Cap 400 Growth Small Cap Value S&P/Citi Small Cap 600 Value Small Cap S&P 600 Small Cap Small Cap Growth S&P/Citi Small Cap 600 Growth Non‐US Stock MSCI EAFE Non‐US Small Cap Stock MSCI EAFE Small Cap Emerging Markets MSCI EM (Emerging Markets) REITS/Real Estate FTSE NAREIT Equity REIT 19 of 20

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Quarterly Investment Monitor Summary Report for the Quarter Ending December 31, 2012 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 & Matt Albano/Milliman Re: Investment Committee Meeting Notes – 2/14/2013 Enclosures: Milliman Quarterly Investment Monitor Report (QIM) 1. Investment Review through 12/31/2012: a. As of 12/31/2012, assets in the plan total $12.09 million, up from $10.95 at 9/30/2012. The plan had contributions of $1 million and fees of approximately $1.25k during the quarter. b. The plan asset allocation has been adjusted based on the investment policy approved during the Nov 8, 2012 meeting. c. Performance of the plan portfolio was slightly above the Plan normal portfolio index for the quarter, at +1.21% versus 1.16% for the plan index. Offices in Principal Cities Worldwide

City of Dover OPEB Trust Quarterly Return Summary OPEB-NET OPEB-GROSS Month End BMV Contribution Withdrawls Fees Gain EMV RETURN RETURN 10/31/2012 $ 10,952,433.97 $ 1,000,000.00 $ - $ 1,250.00 $ (76,267.11) $ 11,874,916.86 -0.65% -0.62% 11/30/2012 $ 11,874,916.86 $ - $ - $ - $ 52,317.80 $ 11,927,234.66 0.44% 0.47% 12/31/2012 $ 11,927,234.66 $ - $ - $ - $ 158,704.04 $ 12,085,938.70 1.33% 1.36% $ 1,000,000.00 $ - $ 1,250.00 $ 134,754.73 Quarterly Return 1.12% 1.21% Milliman, Inc.

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

Quarterly Investment Monitor Market Indices - 4th Quarter 2012 3 1 3 5 Index Months Year Years Years BofAML US Treasury Bill 3 Mon 0.04 0.11 0.11 0.52 Barclays US Govt 1-3 Yr TR USD 0.07 0.51 1.49 2.49 Barclays US Govt/Credit Interm TR USD 0.35 3.89 5.19 5.18 Barclays US Government Long TR USD -0.71 3.78 13.62 9.58 Barclays US Long Credit TR USD 1.25 12.73 13.48 10.40 Barclays US Corporate High Yield TR USD 3.29 15.81 11.86 10.34 DJ Industrial Average TR USD -1.74 10.24 10.87 2.62 S&P 500 TR -0.38 16.00 10.87 1.66 NASDAQ 100 TR USD -4.50 18.35 13.80 5.89 NASDAQ Composite TR USD -2.65 17.45 11.19 3.68 Russell 1000 Value TR USD 1.52 17.51 10.86 0.59 Russell 1000 TR USD 0.12 16.42 11.12 1.92 Russell 1000 Growth TR USD -1.32 15.26 11.35 3.12 Russell 2000 Value TR USD 3.22 18.05 11.57 3.55 Russell 2000 TR USD 1.85 16.35 12.25 3.56 Russell 2000 Growth TR USD 0.45 14.59 12.82 3.49 FTSE NAREIT All REITs TR 2.19 20.14 18.03 5.60 MSCI EAFE NR USD 6.57 17.32 3.56 -3.69 MSCI EAFE Small Cap NR USD 6.01 20.00 7.17 -0.86 MSCI EM NR USD 5.58 18.22 4.66 -0.92 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 3

Quarterly Investment Monitor Broad Market Commentary - 4th Quarter 2012 Broad Markets - Quarter Broad Markets - Five Years Oct-12 - Dec-12 Dec-07 - Dec-12 7 130 6 120 5 110 4 100 Total Return, % Growth of $100 3 90 2 80 1 70 0 -1 60 -2 50 -3 40 Oct-12 - Dec-12 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Total Total Barclays US Govt/Credit Interm TR USD S&P 500 TR Barclays US Govt/Credit Interm TR USD S&P 500 TR NASDAQ Composite TR USD MSCI EAFE NR USD NASDAQ Composite TR USD MSCI EAFE NR USD Market Commentary · The U.S. stock market was mixed on concerns about the presidential election, the “fiscal cliff” of automatic spending cuts and tax increases, and the resulting impact on the U.S. economy. · The international equity markets made substantial gains as investors became more confident in the European Central Bank's ability to address the European debt crisis and China's economy regained momentum. · The Federal Reserve Bank announced its intentions to increase its securities purchases (“QE3”) and keep short-term interest rates low until unemployment falls below 6.5% -- the first time it has tied rates to an economic milestone. · As the quarter ended, mutual fund investors increased their holdings in bonds and decreased their holdings in stocks. For the quarter, bond funds had net inflows of $68.2 billion, while stock funds had net outflows of $64.1 billion. Total money market mutual fund assets increased by $91.1 billion to $2.667 trillion. · The unemployment rate was unchanged at 7.8%, as total employment increased by 453,000 jobs. · The price of oil was unchanged at $92 per barrel. · For the three months ending December 31, 2012, annualized seasonally adjusted CPI – U was -0.7%. Falling prices for gasoline drove the decrease. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 4

Quarterly Investment Monitor US Fixed Income Market Commentary - 4th Quarter 2012 US Fixed Income - Quarter US Fixed Income - Five Years Oct-12 - Dec-12 Dec-07 - Dec-12 4 170 160 150 3 140 Total Return, % Growth of $100 130 2 120 110 1 100 90 0 80 70 60 -1 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Oct-12 - Dec-12 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 th · The broad fixed income market rose 0.21% in the 4 quarter, as the coupon return of 0.81% more than offset the negative impact from a 0.13% rise in interest rates. · The short end of the yield curve remained unchanged as the Fed maintained its near-zero interest rate policy. · Interest rates increased slightly from the 2- to the 30-year Treasury rates. · Emerging market bonds and high-yield bonds were the best performing sectors this quarter, up 3.29%, as investors favored bonds with higher yields. · Long-term corporate bonds were up 0.03%, as corporate credit spreads tightened sharply in response to strong demand from investors. · Long-term government bonds were the worst performing sector this quarter, down 0.94%, on lower demand for safe-haven assets. · 91-Day T-Bill returned 0.04% in the fourth quarter as compared with 0.03% in the third quarter. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 5

Quarterly Investment Monitor US Equity Market Commentary - 4th Quarter 2012 US Equity - Quarter US Equity - Five Years Oct-12 - Dec-12 Dec-07 - Dec-12 4 130 120 3 110 Total Return, % Growth of $100 2 100 90 1 80 0 70 60 -1 50 -2 40 Oct-12 - Dec-12 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Total Total Russell 1000 Value TR USD Russell 1000 TR USD Russell 1000 Value TR USD Russell 1000 TR USD Russell 1000 Growth TR USD Russell 2000 Value TR USD Russell 1000 Growth TR USD Russell 2000 Value TR USD Russell 2000 TR USD Russell 2000 Growth TR USD Russell 2000 TR USD Russell 2000 Growth TR USD US Stock Market · The major domestic equity indices were mixed for the quarter. The small-cap Russell 2000 Value Index had the best return, up 3.2%. · Small-cap stocks outperformed large-caps, up 1.9% vs. 0.1%. · In comparing styles, value stocks did better than growth stocks. · In a reversal from last quarter, REITs rose 2.31%, due to limited new supply, improving demand, and a low cost of capital. The best performing sectors were industrials and regional malls. · Financials were the best performing sector, up 5.12%, on continued monetary stimulus by the Fed, an improving housing market, and capital levels that appear to be adequate. · Telecommunication services were the worst performing sector, down 5.56%, as AT&T reported an unexpectedly large decline in subscriber growth. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 6

Quarterly Investment Monitor International Market Commentary - 4th Quarter 2012 International - Quarter Oct-12 - Dec-12 7 International - Five Years 6 Total Return, % 5 Dec-07 - Dec-12 4 110 3 2 100 1 90 0 Growth of $100 80 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD MSCI EM NR USD 70 Regional Performance - Quarter Oct-12 - Dec-12 60 9 8 50 7 Total Return, % 6 5 40 4 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 3 2 MSCI EAFE NR USD MSCI EAFE Small Cap NR USD 1 MSCI EM NR USD 0 MSCI Australia NR USD MSCI Europe Ex UK NR USD MSCI UK NR USD MSCI Pacific Ex Japan NR USD MSCI Japan NR USD MSCI EM Latin America NR USD International Markets · The dollar was down against the euro and pound, but up strongly against the yen. · For the quarter, the EAFE Index was up 6.57% and Emerging Markets were up 5.58%. Local currency returns for the EAFE Index and Emerging Markets were 7.52% and 5.33%, respectively. · Among the major international regions, Chinese stocks had the highest return (+12.43%), helped by a more positive economic outlook for China. · Stocks in Europe (except for the U.K.) also rose substantially (+8.62%), as the European Central Bank provided stimulus and guided recovery efforts in debt-ridden countries. · Small-cap stocks, up 6.0%, underperformed large-cap stocks, up 6.6%. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 7

Quarterly Investment Monitor Data as of 12/31/2012 Performance Summary City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 8

Quarterly Investment Monitor Data as of 12/31/2012 Asset Allocation Balances As of Percent As of Balances As of Percent As of Notes 12/31/2012 12/31/2012 09/30/2012 09/30/2012 Wells Fargo Advantage Cash Inv MMkt I $267,754 2.21% $218,071 1.99% WFIXX Vanguard Short-Term Bond Index Signal $361,620 2.99% $0 0.00% VBSSX Vanguard Inflation-Protected Secs I $246,984 2.04% $0 0.00% VIPIX PIMCO Total Return Instl $663,113 5.48% $1,319,832 12.05% PTTRX Vanguard Total Bond Market Index Signal $637,337 5.27% $1,972,094 18.01% VBTSX PIMCO Long Duration Total Return Instl $1,329,660 11.00% $0 0.00% PLRIX Vanguard Long-Term Bond Index I $1,335,553 11.05% $0 0.00% VBLLX American Funds Washington Mutual R6 $1,193,495 9.87% $1,093,370 9.98% RWMGX Vanguard 500 Index Signal $0 0.00% $1,647,123 15.04% VIFSX Vanguard Growth Index I $1,196,991 9.90% $0 0.00% VIGIX Vanguard Mid Cap Index Adm $600,299 4.97% $1,196,667 10.93% VIMAX Target Small Capitalization Value T $601,707 4.98% $762,378 6.96% TASVX American Funds New Perspective R6 $600,393 4.97% $1,427,301 13.03% RNPGX Harding Loevner Global Equity Inst $596,520 4.93% $1,315,241 12.01% HLMVX Vanguard Emerging Mkts Stock Idx I $1,847,979 15.28% $0 0.00% VEMIX Vanguard REIT Index I $610,939 5.05% $0 0.00% VGSNX Plan Total $12,090,344 $10,952,078 City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 9

Quarterly Investment Monitor Data as of 12/31/2012 Investment Policy Review - Active Management Return Return Excess Excess Relative Relative Alpha Sharpe Alpha Sharpe Fund Rank Rank Return Return StdDev StdDev Rank Rank Rank Rank Name 3Y 5Y 3Y 5Y 3Y 5Y 3Y 3Y 5Y 5Y Vanguard Inflation-Protected Secs I 31 34 -0.08 -0.22 1.01 1.01 55 46 46 31 PIMCO Total Return Instl 20 0 2.56 3.16 1.48 1.30 37 46 0 0 PIMCO Long Duration Total Return Instl 31 13 -0.21 1.46 0.93 0.97 81 56 63 25 American Funds Washington Mutual R6 14 20 0.80 2.05 0.83 0.83 10 10 25 23 Target Small Capitalization Value T 52 19 -2.09 0.10 0.92 0.90 27 29 18 17 American Funds New Perspective R6 27 19 1.68 2.85 0.95 0.92 34 27 20 20 Harding Loevner Global Equity Inst 36 21 0.96 2.65 0.96 0.94 41 40 21 21 Definitions Return Rank - Fund's category percentile return rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Relative StdDev - Fund's standard deviation relative to its benchmark, a value less than 1 implies the fund's standard deviation is lower than its benchmark. Alpha Rank - Fund's category percentile Alpha rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. Sharpe Rank - Fund's category percentile Sharpe Ratio rank, a value less than 50 (1 is the best and 100 is the worst) implies the fund is beating more than 50% of its peer group. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 10

Quarterly Investment Monitor Data as of 12/31/2012 Investment Policy Review - Passive Management Excess Excess Tracking Tracking Fund Beta Beta Expense Return Return Error Error Name 3Y 5Y Ratio 3Y 5Y 3Y 5Y Vanguard Short-Term Bond Index Signal 1.17 0.92 1.79 0.73 1.51 0.89 0.11 Vanguard Total Bond Market Index Signal -0.15 NA 1.03 0.26 NA NA 0.10 Vanguard Long-Term Bond Index I -0.06 0.03 1.04 0.94 1.02 0.83 0.07 Vanguard Growth Index I -0.08 -0.03 1.00 0.05 1.00 0.07 0.08 Vanguard Mid Cap Index Adm -0.07 -0.03 1.00 0.02 1.00 0.04 0.10 Vanguard Emerging Mkts Stock Idx I 0.17 0.10 1.01 3.06 1.01 3.34 0.13 Vanguard REIT Index I 1.32 2.00 1.00 0.20 0.99 0.55 0.08 Definitions Excess Return - Fund's excess return over its benchmark, a value greater than 0 implies the fund's return is higher than its benchmark. Beta - Fund's Beta or sensitivity to movements compared to its benchmark, a value of 1 implies its moving in sync with its benchmark. Tracking Error - Fund's Tracking Error versus its benchmark, a value of 0 implies the Fund's ups and downs are the same size as its benchmark. City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 11

Quarterly Investment Monitor Data as of 12/31/2012 Investment Option Return Summary Asset Fund 3 1 3 5 10 Mstar Expense YTD Ticker Class Name Months Year Years Years Years Rating Ratio Taxable Money Market Wells Fargo Advantage Cash Inv MMkt I 0.02 0.06 0.06 0.09 0.72 1.91 WFIXX NA 0.20 BofA ML 3-month T-bill total return Index 0.04 0.11 0.11 0.11 0.52 1.78 N/A NA NA Short-term Bond Vanguard Short-Term Bond Index Signal 0.15 2.05 2.05 3.05 3.80 3.67 VBSSX 3.00 0.11 Barclays US Govt/Credit 1-3 Yr TR USD 0.15 1.26 1.26 1.88 2.88 3.13 N/A NA NA Inflation-Protected Bond Vanguard Inflation-Protected Secs I 0.57 6.87 6.87 8.82 6.81 6.50 VIPIX 4.00 0.07 Barclays US Treasury US TIPS TR USD 0.69 6.98 6.98 8.90 7.04 6.65 N/A NA NA Intermediate-term Bond PIMCO Total Return Instl 1.17 10.36 10.36 7.75 8.34 6.82 PTTRX 5.00 0.46 Intermediate-term Bond Vanguard Total Bond Market Index Signal 0.13 4.15 4.15 6.11 5.91 5.14 VBTSX 3.00 0.10 BC Intermediate Government/Credit 0.35 3.89 3.89 5.19 5.18 4.62 N/A NA NA Barclays US Agg Float Adj TR USD 0.24 4.32 4.32 6.26 NA NA N/A NA NA Long-term Bond PIMCO Long Duration Total Return Instl 0.44 10.28 10.28 13.44 11.62 NA PLRIX 4.00 0.50 Long-term Bond Vanguard Long-Term Bond Index I 0.11 8.55 8.55 13.58 10.19 7.93 VBLLX 3.00 0.07 BC Long Government/Credit 0.45 8.78 8.78 13.65 10.16 7.96 N/A NA NA Large Value American Funds Washington Mutual R6 0.44 12.85 12.85 11.26 1.90 6.80 RWMGX 5.00 0.31 S&P 500 Value 1.64 17.68 17.68 10.47 (0.15) 7.14 N/A NA NA Large Growth Vanguard Growth Index I (1.08) 17.04 17.04 11.80 3.35 7.53 VIGIX 4.00 0.08 MSCI US Prime Market Growth USD (1.07) 17.14 17.14 11.87 3.38 7.82 N/A NA NA Mid-Cap Blend Vanguard Mid Cap Index Adm 2.83 15.99 15.99 12.61 3.15 10.02 VIMAX 3.00 0.10 MSCI US Mid Cap 450 Index USD 2.84 16.04 16.04 12.68 3.19 10.43 N/A NA NA Small Value Target Small Capitalization Value T 3.75 14.14 14.14 11.98 5.24 11.86 TASVX 4.00 0.71 S&P 600 Index 2.22 16.33 16.33 14.07 5.14 10.45 N/A NA NA World Stock American Funds New Perspective R6 4.21 21.19 21.19 8.30 1.69 10.16 RNPGX 4.00 0.46 World Stock Harding Loevner Global Equity Inst 1.07 17.42 17.42 7.58 1.49 9.32 HLMVX 3.00 0.95 MSCI AC World Index ND USD 2.88 16.13 16.13 6.63 (1.16) 8.11 N/A NA NA Diversified Emerging Mkts Vanguard Emerging Mkts Stock Idx I 6.84 18.90 18.90 4.83 (0.81) 16.41 VEMIX 3.00 0.13 MSCI EM NR USD 5.58 18.22 18.22 4.66 (0.92) 16.52 N/A NA NA Real Estate Vanguard REIT Index I 2.50 17.65 17.65 18.03 6.11 11.71 VGSNX 3.00 0.08 MSCI US REIT NR USD 2.17 16.47 16.47 16.70 4.11 NA N/A NA NA Total Plan OPEB-GROSS RETURN 1.21 14.30 14.30 NA NA NA N/A NA NA Total Plan OPEB-NET RETURN 1.12 13.89 13.89 NA NA NA N/A NA NA OPEB Plan Policy Index 1.16 12.60 12.60 8.55 2.72 7.11 N/A NA NA City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 12

Quarterly Investment Monitor Data as of 12/31/2012 U.S. Fixed Income Style Map 36 Month moving average, Jan-08 - Dec-12 BC Government BC Credit Bond BC Municipal Bond BC High Yield Corporate Bond BC Mortgage Backed Securities Barcap US Fixed Income Vanguard Short-Term Bond Index Signal Vanguard 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 12/31/2012 U.S. Equity Style Map 36 Month moving average, Jan-08 - Dec-12 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 12/31/2012 International Equity Style Map 36 Month moving average, Jan-08 - Dec-12 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 12/31/2012 Core Fund Review City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 16

Quarterly Investment Monitor Data as of 12/31/2012 Vanguard Short-Term Bond Index Signal 4.33 Portfolio Information Investment Strategy Summary 9.93 % 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 Capital U.S. 1-5 Year Cat Med Mkt Cap $MM 9418.10 % Pref Government/Credit Float Adjusted Index. It invests by sampling the index. The fund invests Net Assets $MM 26204.17 at least 80% of assets in bonds held in the index. It maintains a dollar-weighted average % Conv Turnover Ratio 67.00 maturity consistent with that of the index, which generally does not exceed 3 years. % Other % Assets in Top 10 Holdings 14.81 % Non-US Bonds Total Number of Holdings 1468.00 _________________________________________________________________________ Manager Name Gregory Davis Manager Tenure 7.92 85.70 Fund Incept Date 03/01/1994 Prospectus Exp Ratio 0.11 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States NA % Cash 4.33 8 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 85.70 7 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.04 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating 6 % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating % Africa NA % Non-US Bonds 9.93 % Rank Cat 3 Yr 49 5 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 32 4 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 29 % Asia - Emerging NA 3 2 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials NA Avg Eff Duration 2.69 2 350 1 % Communication Services NA Effective Maturity 2.80 % Consumer Cyclical NA Avg Credit Quality AA 0 % Consumer Defensive NA US Govt/ Agency NA 300 % Healthcare NA AAA 74.95 % Industrials NA AA 6.08 -1 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 11.10 250 % Technology NA BBB 7.87 % Energy NA BB 0.00 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B 0.00 Median to 75th Percentile 75th to 95th Percentile Ratio 200 % Utilities NA Below B 0.00 Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD NR/NA 0.00 1 Turnover 150 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 0.625% 1.98% Vanguard Short-Term Bond Index Signal 0.15 2.05 2.05 3.05 3.80 US Treasury Note 2.5% 1.58% 100 Barclays US Govt/Credit 1-3 Yr TR USD 0.15 1.26 1.26 1.88 2.88 US Treasury Note 2.625% 1.57% Universe(5%) 1.35 7.52 7.52 6.17 5.72 US Treasury Note 1% 1.56% Universe(25%) 0.63 4.70 4.70 3.88 4.25 US Treasury Note 0.875% 1.48% 50 Universe(Median) 0.42 3.87 3.87 3.02 3.43 US Treasury Note 1.75% 1.42% Universe(75%) 0.13 2.48 2.48 2.42 2.83 US Treasury Note 2.375% 1.38% Universe(95%) -0.08 1.17 1.17 1.24 1.08 US Treasury Note 0.25% 1.33% 0 0 US Treasury Note 0.25% 1.27% Prospectus Exp Ratio Turnover Ratio US Treasury Note 0.625% 1.24% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 17

Quarterly Investment Monitor Data as of 12/31/2012 Vanguard Short-Term Bond Index Signal Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 20 0 15 25 Total Return Rank, % 10 50 Total Return, % 5 75 0 -5 100 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -10 Up/Down Market Capture Ratio -15 Jan-10 - Dec-12 450 -20 400 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 350 Up Mkt Capture Ratio, % Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 300 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 250 Vanguard Short-Term Bond Index Signal 3.37 1.70 1.31 4.09 7.28 5.51 4.38 4.03 3.08 2.05 200 Barclays US Govt/Credit 1-3 Yr TR USD 2.81 1.30 1.77 4.25 6.83 4.97 3.83 2.80 1.59 1.26 150 100 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 3 3 3 3 0 -500 -400 -300 -200 -100 0 100 200 300 400 500 Down Mkt Capture Ratio, % Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Excess Annualized StdDev, % 2 Total Annualized StdDev, % 2 2 2 Barclays US Govt/Credit 1-3 Yr TR USD Sharpe Ratio Alpha, % 1 Return vs. Risk 1 1 1 Jan-10 - Dec-12 0 11 10 9 Total Annualized Return, % -1 0 0 0 8 7 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Short-Term Bond Index Signal Barclays US Govt/Credit 1-3 Yr TR USD 6 5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 4 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 3 Vanguard Short-Term Bond Index Signal -0.24 1.79 90.08 2.10 1.39 0.73 2 Barclays US Govt/Credit 1-3 Yr TR USD 0.00 1.00 100.00 2.39 0.73 0.00 1 Universe(5%) 2.74 2.26 89.65 2.99 2.81 2.67 0 0 1 2 3 4 Universe(25%) 1.23 1.72 74.64 2.60 1.84 1.47 Universe(Median) 0.63 1.30 57.73 2.18 1.37 0.99 Total Annualized StdDev, % Universe(75%) 0.17 1.10 39.55 1.89 1.03 0.63 Morningstar Short Term Bond Universe Vanguard Short-Term Bond Index Signal Universe(95%) -0.62 0.75 11.96 1.11 0.75 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 12/31/2012 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 Avg Mkt Cap $MM NA % Non-US Stocks inflation-indexed bonds issued by the U.S. government, its agencies and instrumentalities, Cat Med Mkt Cap $MM 13018.99 % Pref and corporations. It may invest in bonds of any maturity; however, its dollar-weighted Net Assets $MM 44577.78 average maturity is expected to be in the range of 7 to 20 years. At a minimum, all bonds % Conv Turnover Ratio 28.00 purchased by the fund will be rated "investment grade" or, if unrated, will be considered by % Other % Assets in Top 10 Holdings 46.11 the advisor to be investment grade. % Non-US Bonds Total Number of Holdings 34.00 Manager Name Gemma Wright-Casparius _________________________________________________________________________ Manager Tenure 1.37 99.98 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 0.02 11 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 99.98 10 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.00 Portfolio Ratings 9 Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 8 % Africa NA % Non-US Bonds 0.00 % Rank Cat 3 Yr 16 % Middle East NA 5 Year Mstar Rating 7 % Japan NA % Rank Cat 5 Yr 28 % Australasia NA 10 Year Mstar Rating 6 % Asia - Developed NA % Rank Cat 10 Yr 21 % Asia - Emerging NA 5 4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 3 % Basic Materials NA Avg Eff Duration 8.50 1.0 450 % Communication Services NA Effective Maturity 9.40 2 % Consumer Cyclical NA Avg Credit Quality Government 0.9 400 % Consumer Defensive NA US Govt/ Agency NA 1 % Healthcare NA AAA 99.99 0.8 % Industrials NA AA 0.01 350 0 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 0.00 0.7 % Technology NA BBB 0.00 300 % 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 250 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD NR/NA 0.00 0.5 Turnover 200 0.4 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Note 1.125% 5.49% 150 0.3 Vanguard Inflation-Protected Secs I 0.57 6.87 6.87 8.82 6.81 US Treasury Note 0.125% 5.34% Barclays US Treasury US TIPS TR USD 0.69 6.98 6.98 8.90 7.04 US Treasury Note 5.33% 100 Universe(5%) 1.15 9.78 9.78 10.61 7.71 US Treasury Note 5.21% 0.2 Universe(25%) 0.79 7.45 7.45 8.96 6.84 US Treasury Note 4.55% Universe(Median) 0.59 6.59 6.59 8.36 6.63 US Treasury Bond 3.875% 4.53% 0.1 50 Universe(75%) 0.51 6.31 6.31 8.08 6.06 US Treasury Note 1.25% 4.09% Universe(95%) 0.18 4.58 4.58 5.39 4.35 US Treasury Bond 2.375% 3.97% 0.0 0 US Treasury Note 3.91% Prospectus Exp Ratio Turnover Ratio US Treasury Note 2% 3.69% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 19

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -5 Up/Down Market Capture Ratio -10 Jan-10 - Dec-12 200 -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 80 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 60 40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 20 1 3 6 4 0 0 20 40 60 80 100 120 140 160 180 200 Down Mkt Capture Ratio, % 5 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Excess Annualized StdDev, % 3 Total Annualized StdDev, % 0 2 4 Barclays US Treasury US TIPS TR USD Sharpe Ratio Alpha, % 3 2 Return vs. Risk -1 1 2 Jan-10 - Dec-12 1 16 1 14 Total Annualized Return, % 12 -2 0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 10 Vanguard Inflation-Protected Secs I Barclays US Treasury US TIPS TR USD 8 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 6 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 4 Vanguard Inflation-Protected Secs I -0.12 1.01 99.03 1.90 4.45 0.44 2 Barclays US Treasury US TIPS TR USD 0.00 1.00 100.00 1.94 4.40 0.00 Universe(5%) 0.94 1.03 99.19 2.12 5.18 3.28 0 0 1 2 3 4 5 6 7 8 9 Universe(25%) 0.40 1.00 98.72 1.96 4.42 1.33 Universe(Median) 0.01 0.97 98.07 1.89 4.33 0.64 Total Annualized StdDev, % Universe(75%) -0.39 0.92 91.88 1.84 4.16 0.51 Morningstar Inflation Proteced Bond Universe Vanguard Inflation-Protected Secs I Universe(95%) -1.20 0.63 69.31 1.27 3.75 0.40 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 12/31/2012 PIMCO Total Return Instl 9.32 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 40.35 Cat Med Mkt Cap $MM 18030.59 % Pref represented by forwards or derivatives such as options, futures contracts, or swap Net Assets $MM 285399.89 agreements. It invests primarily in investment-grade debt securities, but may invest up to % Conv Turnover Ratio 584.00 10% of its total assets in high yield securities ("junk bonds") rated B or higher by Moody's, % Other % Assets in Top 10 Holdings 44.65 or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of 46.71 % Non-US Bonds Total Number of Holdings 20824.00 comparable quality. Manager Name William H. Gross Manager Tenure 25.66 _________________________________________________________________________ 3.49 Fund Incept Date 05/11/1987 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 9.32 12 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 40.35 % United Kingdom NA % Non-US Stocks 0.00 10 % Eurozone NA % Pref 0.13 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 3.49 3 Year Mstar Rating 8 % Africa NA % Non-US Bonds 46.71 % Rank Cat 3 Yr 25 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 7 6 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 7 % Asia - Emerging NA 4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 % Basic Materials NA Avg Eff Duration 4.02 2 600 % Communication Services NA Effective Maturity 5.93 % Consumer Cyclical NA Avg Credit Quality NA 0 % Consumer Defensive NA US Govt/ Agency NA 500 % Healthcare NA AAA NA % Industrials NA AA NA -2 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A NA % Technology NA BBB NA 400 % Energy NA BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services NA B NA 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 1 300 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Fin Fut Euro$ Cme 06/15/15 12.05% 200 PIMCO Total Return Instl 1.17 10.36 10.36 7.75 8.34 Fannie Mae Single Family TBA 3.5% 2042-11-01 6.02% BC Intermediate Government/Credit 0.35 3.89 3.89 5.19 5.18 Fannie Mae Single Family TBA 4% 2042-10-01 5.50% Universe(5%) 1.46 10.82 10.82 9.26 7.81 Fin Fut Euro$ Cme 03/16/2015 4.83% Universe(25%) 0.79 8.12 8.12 7.50 6.71 100 Cdx Bp Ig18 5y Cme 3.42% Universe(Median) 0.60 7.26 7.26 6.18 5.33 Pimco Fds 3.39% Universe(75%) 0.04 3.89 3.89 5.14 4.90 Fannie Mae Single Family TBA 3.5% 2042-10-01 3.11% Universe(95%) -0.20 2.30 2.30 4.42 3.89 Fannie Mae Single Family TBA 4% 2042-11-01 2.14% 0 0 Fannie Mae Single Family TBA 3% 2042-10-01 2.13% Prospectus Exp Ratio Turnover Ratio US Treasury Note 2.06% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 21

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -5 Up/Down Market Capture Ratio -10 Jan-10 - Dec-12 160 -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, % 120 PIMCO Total Return Instl BC Intermediate Government/Credit 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 PIMCO Total Return Instl 5.56 5.14 2.89 3.99 9.07 4.82 13.83 8.83 4.16 10.36 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 4 4 4 4 0 -60 -40 -20 0 20 40 60 80 100 120 Down Mkt Capture Ratio, % 3 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Excess Annualized StdDev, % 3 3 3 Total Annualized StdDev, % BC Intermediate Government/Credit 2 Sharpe Ratio Alpha, % 2 2 2 1 Return vs. Risk Jan-10 - Dec-12 1 1 1 10 0 9 Total Annualized Return, % 8 -1 0 0 0 7 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 6 PIMCO Total Return Instl BC Intermediate Government/Credit 5 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 3 PIMCO Total Return Instl 2.24 1.04 49.39 2.29 3.25 2.31 2 BC Intermediate Government/Credit 0.00 1.00 100.00 2.27 2.19 0.00 1 Universe(5%) 3.77 1.06 92.10 3.02 3.85 3.17 0 0 1 2 3 4 Universe(25%) 2.50 1.00 85.27 2.57 2.91 2.30 Universe(Median) 1.99 0.93 59.26 2.27 2.63 1.70 Total Annualized StdDev, % Universe(75%) 0.81 0.84 39.93 2.03 2.15 0.91 Morningstar IntermTerm Bond Universe PIMCO Total Return Instl Universe(95%) -0.62 0.81 32.67 1.73 2.06 0.62 Cash BC Intermediate Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 22

Quarterly Investment Monitor Data as of 12/31/2012 Vanguard Total Bond Market Index Signal 5.82 Portfolio Information Investment Strategy Summary 11.72 % 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 Capital U.S. Aggregate Float Adjusted Index. It invests by sampling the index, Cat Med Mkt Cap $MM 18030.59 % Pref meaning that it holds a broadly diversified collection of securities that, in the aggregate, Net Assets $MM 116668.47 approximates the full index in terms of key risk factors and other characteristics. The fund % Conv Turnover Ratio 73.00 invests at least 80% of assets in bonds held in the index. It maintains a dollar-weighted % Other % Assets in Top 10 Holdings 6.45 average maturity consistent with that of the index, ranging between 5 and 10 years. % Non-US Bonds Total Number of Holdings 15289.00 Manager Name Gregory Davis _________________________________________________________________________ Manager Tenure 4.69 82.41 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 5.82 12 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 82.41 % United Kingdom NA % Non-US Stocks 0.00 10 % Eurozone NA % Pref 0.05 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 8 % Africa NA % Non-US Bonds 11.72 % Rank Cat 3 Yr 73 % Middle East NA 5 Year Mstar Rating % Japan NA % Rank Cat 5 Yr 56 6 % Australasia NA 10 Year Mstar Rating % Asia - Developed NA % Rank Cat 10 Yr 48 % Asia - Emerging NA 4 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 2 % Basic Materials NA Avg Eff Duration 4.97 2 600 % Communication Services NA Effective Maturity 6.90 % Consumer Cyclical NA Avg Credit Quality AA 0 % Consumer Defensive NA US Govt/ Agency NA 500 % Healthcare NA AAA 73.05 % Industrials NA AA 4.30 -2 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 11.77 % Technology NA BBB 10.88 400 % 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 Total Bond Market Index Signal Barclays US Agg Float Adj TR USD NR/NA 0.00 1 300 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years US Treasury Bond 6.25% 0.80% 200 Vanguard Total Bond Market Index Signal 0.13 4.15 4.15 6.11 5.91 Ginnie Mae Jumbos TBA 3.5% 2042-10-01 0.79% Barclays US Agg Float Adj TR USD 0.24 4.32 4.32 6.26 NA Fannie Mae Single Family TBA 3.5% 2042-10-01 0.78% Universe(5%) 1.46 10.82 10.82 9.26 7.81 US Treasury Note 1.875% 0.67% Universe(25%) 0.79 8.12 8.12 7.50 6.71 100 US Treasury Note 1% 0.62% Universe(Median) 0.60 7.26 7.26 6.18 5.33 US Treasury Note 0.375% 0.60% Universe(75%) 0.04 3.89 3.89 5.14 4.90 Fannie Mae Single Family TBA 3% 2027-10-01 0.58% Universe(95%) -0.20 2.30 2.30 4.42 3.89 US Treasury Note 0.25% 0.55% 0 0 US Treasury Note 0.375% 0.54% Prospectus Exp Ratio Turnover Ratio US Treasury Note 2.125% 0.53% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 23

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -5 Up/Down Market Capture Ratio -10 Jan-10 - Dec-12 140 -15 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 120 Up Mkt Capture Ratio, % Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 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 7.69 4.15 60 Barclays US Agg Float Adj TR USD NA NA NA NA NA NA NA 6.58 7.92 4.32 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 4 4 4 0 -75 -50 -25 0 25 50 75 100 125 150 175 4 Down Mkt Capture Ratio, % Morningstar IntermTerm Bond Universe Vanguard Total Bond Market Index Signal Excess Annualized StdDev, % 3 3 3 Total Annualized StdDev, % 3 Barclays US Agg Float Adj TR USD Sharpe Ratio 2 Alpha, % 2 2 2 1 Return vs. Risk Jan-10 - Dec-12 0 1 1 1 10 -1 9 Total Annualized Return, % 8 -2 0 0 0 7 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 6 Vanguard Total Bond Market Index Signal Barclays US Agg Float Adj TR USD 5 4 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 3 Vanguard Total Bond Market Index Signal -0.33 1.03 99.04 2.31 2.54 0.26 2 Barclays US Agg Float Adj TR USD 0.00 1.00 100.00 2.45 2.45 0.00 1 Universe(5%) 4.42 0.98 95.11 3.02 3.85 3.46 0 0 1 2 3 4 Universe(25%) 2.84 0.92 88.63 2.57 2.91 1.86 Universe(Median) 0.86 0.81 60.69 2.27 2.63 1.83 Total Annualized StdDev, % Universe(75%) 0.02 0.78 53.86 2.03 2.15 0.86 Morningstar IntermTerm Bond Universe Vanguard Total Bond Market Index Signal Universe(95%) -1.40 0.68 23.88 1.73 2.06 0.55 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 12/31/2012 PIMCO Long Duration Total Return Instl 8.20 Portfolio Information Investment Strategy Summary % Cash 15.34 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 Avg Mkt Cap $MM 56676.85 % Non-US Stocks Fixed Income Instruments of varying maturities, which may be represented by forwards or Cat Med Mkt Cap $MM 45740.49 % Pref derivatives such as options, futures contracts or swap agreements. It invests primarily in Net Assets $MM 6107.08 investment grade debt securities, but may invest up to 10% of its total assets in high yield % Conv Turnover Ratio 219.00 securities ("junk bonds") that are rated B or higher by Moody's, or equivalently rated by S&P % Other % Assets in Top 10 Holdings 24.20 or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. % Non-US Bonds Total Number of Holdings 852.00 Manager Name Stephen Rodosky _________________________________________________________________________ Manager Tenure 5.42 75.43 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 8.20 20 % Canada 0.00 % US Stocks 0.00 % Latin America 0.00 % Bonds 75.43 18 % United Kingdom 0.00 % Non-US Stocks 0.00 % Eurozone 0.00 % Pref 0.43 Portfolio Ratings 16 Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.59 3 Year Mstar Rating 14 % Africa 0.00 % Non-US Bonds 15.34 % Rank Cat 3 Yr 35 % Middle East 0.00 5 Year Mstar Rating 12 % Japan 0.00 % Rank Cat 5 Yr 17 % Australasia 0.00 10 Year Mstar Rating NA 10 % Asia - Developed 0.00 % Rank Cat 10 Yr NA % Asia - Emerging 0.00 8 6 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 4 % Basic Materials 0.00 Avg Eff Duration 13.42 2 400 % Communication Services 0.00 Effective Maturity 21.94 2 % Consumer Cyclical 0.00 Avg Credit Quality NA % Consumer Defensive 0.00 US Govt/ Agency NA 350 0 % Healthcare 0.00 AAA NA % Industrials 0.00 AA NA -2 300 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 4.375% 6.49% PIMCO Long Duration Total Return Instl 0.44 10.28 10.28 13.44 11.62 US Treasury Bond 4.25% 3.52% BC Long Government/Credit 0.45 8.78 8.78 13.65 10.16 100 US Treasury Bond 5.375% 2.39% Universe(5%) 2.64 18.09 18.09 16.94 13.61 US Treasury Bond 3.125% 2.08% Universe(25%) 1.51 12.89 12.89 13.45 10.82 Quebec Prov Cda 5.75% 1.80% 50 Universe(Median) 1.12 10.63 10.63 10.28 8.74 U S Treas Bd Stripped Prin Pmt 1.77% Universe(75%) 0.38 6.87 6.87 9.39 5.96 Resolution Fdg Fed Bk Prin Stp 1.67% Universe(95%) -0.99 2.85 2.85 4.12 3.84 Resolution Fdg Fed Bk Prin Stp 1.63% 0 0 AID 5.5% 1.50% Prospectus Exp Ratio Turnover Ratio FNMA 1.35% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 25

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -10 Up/Down Market Capture Ratio -20 Jan-10 - Dec-12 250 -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 10.28 100 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 12 3 12 14 0 -150 -100 -50 0 50 100 150 200 250 300 350 10 12 Down Mkt Capture Ratio, % 10 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Excess Annualized StdDev, % 8 Total Annualized StdDev, % 10 2 8 BC Long Government/Credit 6 Sharpe Ratio 8 Alpha, % 4 6 6 Return vs. Risk 2 1 4 Jan-10 - Dec-12 4 0 25 2 -2 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 PIMCO Long Duration Total Return Instl BC Long Government/Credit 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 PIMCO Long Duration Total Return Instl 1.16 0.89 92.40 1.66 7.72 2.30 5 BC Long Government/Credit 0.00 1.00 100.00 1.57 8.31 0.00 Universe(5%) 11.71 1.38 93.72 2.77 11.98 13.84 0 0 5 10 15 20 25 30 Universe(25%) 5.90 0.68 78.47 2.21 7.72 7.92 Universe(Median) 4.94 0.33 46.93 1.90 5.18 6.87 Total Annualized StdDev, % Universe(75%) 1.36 0.13 25.61 1.59 4.03 5.61 Morningstar Long Term Bond Universe PIMCO Long Duration Total Return Instl Universe(95%) -3.21 -0.09 1.20 1.18 1.80 2.03 Cash BC Long Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 26

Quarterly Investment Monitor Data as of 12/31/2012 Vanguard Long-Term Bond Index I Portfolio Information Investment Strategy Summary 12.36 % 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 Capital U.S. Long Cat Med Mkt Cap $MM 45740.49 % Pref Government/Credit Float Adjusted Index. It invests at least 80% of assets in bonds held in Net Assets $MM 5709.27 the index. The fund maintains a dollar-weighted average maturity consistent with that of the % Conv Turnover Ratio 45.00 index, which generally ranges between 15 and 30 years. % Other % Assets in Top 10 Holdings 23.73 % Non-US Bonds Total Number of Holdings 1385.00 _________________________________________________________________________ Manager Name Gregory Davis 86.71 Manager Tenure 4.69 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 0.90 20 % Canada NA % US Stocks 0.00 % Latin America NA % Bonds 86.71 18 % United Kingdom NA % Non-US Stocks 0.00 % Eurozone NA % Pref 0.03 Portfolio Ratings 16 Total Annualized Return, % % Europe - ex Euro NA % Conv 0.00 Mstar Rating % Europe - Emerging NA % Other 0.00 3 Year Mstar Rating 14 % Africa NA % Non-US Bonds 12.36 % Rank Cat 3 Yr 29 % Middle East NA 5 Year Mstar Rating 12 % Japan NA % Rank Cat 5 Yr 42 % Australasia NA 10 Year Mstar Rating 10 % Asia - Developed NA % Rank Cat 10 Yr 50 % Asia - Emerging NA 8 6 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 4 % Basic Materials NA Avg Eff Duration 14.79 2 400 % Communication Services NA Effective Maturity 24.10 2 % Consumer Cyclical NA Avg Credit Quality A % Consumer Defensive NA US Govt/ Agency NA 350 0 % Healthcare NA AAA 43.45 % Industrials NA AA 7.27 -2 300 3 Months YTD 1 Year 3 Years 5 Years % Real Estate NA A 23.60 % Technology NA BBB 25.68 % 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% 3.25% Vanguard Long-Term Bond Index I 0.11 8.55 8.55 13.58 10.19 US Treasury Bond 4.25% 2.73% BC Long Government/Credit 0.45 8.78 8.78 13.65 10.16 100 US Treasury Bond 3% 2.55% Universe(5%) 2.64 18.09 18.09 16.94 13.61 US Treasury Bond 4.375% 2.42% Universe(25%) 1.51 12.89 12.89 13.45 10.82 US Treasury Bond 3.125% 2.36% 50 Universe(Median) 1.12 10.63 10.63 10.28 8.74 US Treasury Bond 4.5% 2.27% Universe(75%) 0.38 6.87 6.87 9.39 5.96 US Treasury Bond 4.375% 2.16% Universe(95%) -0.99 2.85 2.85 4.12 3.84 US Treasury Bond 4.75% 2.16% 0 0 US Treasury Bond 4.625% 1.96% Prospectus Exp Ratio Turnover Ratio US Treasury Bond 4.25% 1.86% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 27

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -10 Up/Down Market Capture Ratio -20 Jan-10 - Dec-12 250 -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 8.55 100 BC Long Government/Credit 5.87 8.56 5.33 2.71 6.60 8.44 1.92 10.16 22.49 8.78 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 12 3 12 14 0 -150 -100 -50 0 50 100 150 200 250 300 350 10 12 Down Mkt Capture Ratio, % 10 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Excess Annualized StdDev, % 8 Total Annualized StdDev, % 10 2 8 BC Long Government/Credit 6 Sharpe Ratio 8 Alpha, % 4 6 6 Return vs. Risk 2 1 4 Jan-10 - Dec-12 4 0 25 2 -2 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 Long-Term Bond Index I BC Long Government/Credit 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 Long-Term Bond Index I -0.57 1.04 98.99 1.50 8.69 0.94 5 BC Long Government/Credit 0.00 1.00 100.00 1.57 8.31 0.00 Universe(5%) 11.71 1.38 93.72 2.77 11.98 13.84 0 0 5 10 15 20 25 30 Universe(25%) 5.90 0.68 78.47 2.21 7.72 7.92 Universe(Median) 4.94 0.33 46.93 1.90 5.18 6.87 Total Annualized StdDev, % Universe(75%) 1.36 0.13 25.61 1.59 4.03 5.61 Morningstar Long Term Bond Universe Vanguard Long-Term Bond Index I Universe(95%) -3.21 -0.09 1.20 1.18 1.80 2.03 Cash BC Long Government/Credit City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 28

Quarterly Investment Monitor Data as of 12/31/2012 American Funds Washington Mutual R6 3.711.55 Portfolio Information Investment Strategy Summary 7.82 % 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 69338.19 % Non-US Stocks common stocks of established companies that are listed on, or meet the financial listing Cat Med Mkt Cap $MM 42144.86 % Pref requirements of, the New York Stock Exchange and have a strong record of earnings and Net Assets $MM 54999.38 dividends. Its advisor strives to maintain a fully invested, diversified portfolio, consisting % Conv Turnover Ratio 22.00 primarily of high-quality common stocks. % Other % Assets in Top 10 Holdings 35.23 % Non-US Bonds Total Number of Holdings 168.00 _________________________________________________________________________ Manager Name Alan N. Berro Manager Tenure 15.01 86.92 Fund Incept Date 07/31/1952 Prospectus Exp Ratio 0.31 Phone Number 800-421-0180 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 91.74 % Cash 3.71 25 % Canada 1.57 % US Stocks 86.92 % Latin America 0.00 % Bonds 0.00 % United Kingdom 4.72 % Non-US Stocks 7.82 20 % Eurozone 1.08 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.88 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 1.55 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 11 15 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 20 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 47 10 % Asia - Emerging 0.00 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 2.12 Avg Eff Duration NA 2 180 % Communication Services 6.47 Effective Maturity NA 0 % Consumer Cyclical 9.68 Avg Credit Quality NA 160 % Consumer Defensive 8.39 US Govt/ Agency NA % Healthcare 12.53 AAA NA % Industrials 23.17 AA NA 140 -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 A NA % Technology 7.63 BBB NA 120 % Energy 13.03 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 11.02 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 5.98 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 5.70% 60 American Funds Washington Mutual R6 0.44 12.85 12.85 11.26 1.90 Merck & Co Inc 4.38% S&P 500 Value 1.64 17.68 17.68 10.47 -0.15 Home Depot, Inc. 3.94% 40 Universe(5%) 3.64 20.29 20.29 12.72 3.53 Verizon Communications Inc 3.78% Universe(25%) 2.07 17.19 17.19 10.42 1.70 Royal Dutch Shell PLC ADR Class B 3.45% Universe(Median) 1.21 14.86 14.86 9.26 0.58 Boeing Co 3.32% 20 Universe(75%) 0.19 12.47 12.47 7.90 -0.64 Wells Fargo & Co 3.25% Universe(95%) -1.64 8.91 8.91 5.49 -2.44 Union Pacific Corp 2.82% 0 0 AT&T Inc 2.34% Prospectus Exp Ratio Turnover Ratio American Express Co 2.26% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 29

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -30 Up/Down Market Capture Ratio -40 Jan-10 - Dec-12 180 -50 160 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, % American Funds Washington Mutual R6 S&P 500 Value 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 80 S&P 500 Value 30.36 15.03 8.71 20.80 1.99 -39.22 21.18 15.10 -0.48 17.68 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 4 1.0 20 7 0 0 20 40 60 80 100 120 140 160 180 3 0.9 18 6 Down Mkt Capture Ratio, % 0.8 16 2 Morningstar Large Value Universe American Funds Washington Mutual R6 Total Annualized StdDev, % Excess Annualized StdDev, % 0.7 14 5 1 S&P 500 Value 0.6 12 Sharpe Ratio 4 Alpha, % 0 0.5 10 -1 0.4 8 3 Return vs. Risk -2 0.3 6 Jan-10 - Dec-12 2 -3 18 0.2 4 1 16 -4 0.1 2 Total Annualized Return, % 14 -5 0.0 0 0 12 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 10 American Funds Washington Mutual R6 S&P 500 Value 8 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 American Funds Washington Mutual R6 2.53 0.80 94.19 0.87 13.22 4.48 2 S&P 500 Value 0.00 1.00 100.00 0.70 15.98 0.00 0 Universe(5%) 3.81 1.20 98.94 0.95 19.48 6.52 -2 0 5 10 15 20 25 30 Universe(25%) 0.39 1.05 98.13 0.71 17.05 4.49 Universe(Median) -0.86 0.98 96.87 0.63 15.92 3.27 Total Annualized StdDev, % Universe(75%) -2.31 0.90 94.28 0.54 14.73 2.42 Morningstar Large Value Universe American Funds Washington Mutual R6 Universe(95%) -4.76 0.72 89.14 0.39 11.99 1.74 Cash S&P 500 Value City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 30

Quarterly Investment Monitor Data as of 12/31/2012 Vanguard Growth Index I 1.15 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 49258.37 % Non-US Stocks investment approach designed to track the performance of the MSCI US Prime Market Cat Med Mkt Cap $MM 39385.49 % Pref Growth Index, a broadly diversified index predominantly made up of growth stocks of large Net Assets $MM 27075.30 U.S. companies. It attempts to replicate the target index by investing all, or substantially all, % Conv Turnover Ratio 23.00 of its assets in the stocks that make up the index, holding each stock in approximately the % Other % Assets in Top 10 Holdings 28.16 same proportion as its weighting in the index. % Non-US Bonds Total Number of Holdings 411.00 Manager Name Gerard C. O'Reilly _________________________________________________________________________ Manager Tenure 18.02 98.85 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 98.85 % Cash 0.00 25 % Canada 0.11 % US Stocks 98.85 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.16 % Non-US Stocks 1.15 20 % Eurozone 0.31 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.43 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.00 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 12 15 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 12 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.14 % Rank Cat 10 Yr 36 10 % Asia - Emerging 0.00 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 3.36 Avg Eff Duration NA 2 300 % Communication Services 3.27 Effective Maturity NA 0 % Consumer Cyclical 15.51 Avg Credit Quality NA % Consumer Defensive 11.93 US Govt/ Agency NA 250 % Healthcare 10.06 AAA NA % Industrials 12.27 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 2.29 A NA % Technology 30.08 BBB NA 200 % Energy 6.47 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 4.66 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.11 Below B NA Ratio Vanguard Growth Index I MSCI US Prime Market Growth USD NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Apple Inc 8.90% 100 Vanguard Growth Index I -1.08 17.04 17.04 11.80 3.35 International Business Machines Corp 3.24% MSCI US Prime Market Growth USD -1.07 17.14 17.14 11.87 3.38 Google, Inc. Class A 2.80% Universe(5%) 2.59 21.38 21.38 13.43 5.35 Coca-Cola Co 2.20% Universe(25%) 0.33 17.59 17.59 10.76 2.68 50 Philip Morris International, Inc. 2.19% Universe(Median) -0.92 15.11 15.11 9.42 1.31 Microsoft Corporation 2.09% Universe(75%) -1.75 12.80 12.80 8.00 -0.36 Wal-Mart Stores Inc 1.96% Universe(95%) -3.32 9.32 9.32 4.96 -3.17 Oracle Corporation 1.79% 0 0 Qualcomm, Inc. 1.53% Prospectus Exp Ratio Turnover Ratio Cisco Systems Inc 1.46% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 31

Quarterly Investment Monitor Data as of 12/31/2012 Vanguard Growth Index I Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 50 20 Total Return, % 75 0 100 -20 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -40 Up/Down Market Capture Ratio Jan-10 - Dec-12 250 -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 MSCI US Prime Market Growth 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 17.04 100 MSCI US Prime Market Growth USD 29.20 7.38 5.25 9.20 12.73 -38.22 36.50 17.23 1.96 17.14 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 2 0.9 22 8 0 0 25 50 75 100 125 150 175 200 225 20 1 0.8 7 Down Mkt Capture Ratio, % 18 0 0.7 Morningstar Large Growth Universe Vanguard Growth Index I Excess Annualized StdDev, % 6 Total Annualized StdDev, % 16 -1 0.6 MSCI US Prime Market Growth USD 14 5 Sharpe Ratio Alpha, % -2 0.5 12 4 -3 0.4 10 Return vs. Risk 8 3 -4 0.3 Jan-10 - Dec-12 6 2 25 -5 0.2 4 -6 0.1 1 2 20 Total Annualized Return, % -7 0.0 0 0 15 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Growth Index I MSCI US Prime Market Growth USD 10 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 5 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Growth Index I -0.07 1.00 100.00 0.75 16.49 0.05 0 MSCI US Prime Market Growth USD 0.00 1.00 100.00 0.76 16.49 0.00 Universe(5%) 1.31 1.18 98.51 0.81 20.11 7.26 -5 0 5 10 15 20 25 30 35 40 Universe(25%) -0.93 1.08 97.57 0.68 18.13 4.64 Universe(Median) -2.34 1.03 96.23 0.60 17.28 3.53 Total Annualized StdDev, % Universe(75%) -3.60 0.96 93.77 0.53 16.21 2.82 Morningstar Large Growth Universe Vanguard Growth Index I Universe(95%) -6.76 0.84 88.08 0.36 14.39 2.09 Cash MSCI US Prime Market Growth USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 32

Quarterly Investment Monitor Data as of 12/31/2012 Vanguard Mid Cap Index Adm 2.23 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 6520.77 % Non-US Stocks approach designed to track the performance of the MSCI US Mid Cap 450 Index, a broadly Cat Med Mkt Cap $MM 5602.00 % Pref diversified index of stocks of mid-size U.S. companies. It attempts to replicate the target Net Assets $MM 32028.03 index by investing all, or substantially all, of its assets in the stocks that make up the index, % Conv Turnover Ratio 22.00 holding each stock in approximately the same proportion as its weighting in the index. % Other % Assets in Top 10 Holdings 5.45 % Non-US Bonds Total Number of Holdings 456.00 _________________________________________________________________________ Manager Name Donald M. Butler Manager Tenure 14.62 97.68 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 97.77 % Cash 0.09 30 % Canada 0.31 % US Stocks 97.68 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.72 % Non-US Stocks 2.23 25 % Eurozone 0.35 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.35 % 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 29 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 40 15 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.50 % Rank Cat 10 Yr 26 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 5 % Basic Materials 5.98 Avg Eff Duration NA 2 300 % Communication Services 2.78 Effective Maturity NA % Consumer Cyclical 16.26 Avg Credit Quality NA 0 % Consumer Defensive 6.08 US Govt/ Agency NA 250 % Healthcare 9.33 AAA NA % Industrials 13.59 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 6.96 A NA % Technology 15.39 BBB NA 200 % Energy 7.97 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 10.54 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 5.12 Below B NA Ratio Vanguard Mid Cap Index Adm MSCI US Mid Cap 450 Index USD NR/NA NA 1 150 Turnover 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Ross Stores, Inc. 0.61% 100 Vanguard Mid Cap Index Adm 2.83 15.99 15.99 12.61 3.15 Health Care REIT, Inc. 0.61% MSCI US Mid Cap 450 Index USD 2.84 16.04 16.04 12.68 3.19 CF Industries Holdings Inc 0.60% Universe(5%) 5.62 26.78 26.78 14.93 6.34 Sherwin-Williams Company 0.54% Universe(25%) 3.82 18.26 18.26 12.95 4.68 50 AvalonBay Communities Inc 0.54% Universe(Median) 3.13 16.89 16.89 11.68 3.14 Teradata Corporation 0.53% Universe(75%) 2.26 12.83 12.83 9.82 1.43 W.W. Grainger, Inc. 0.51% Universe(95%) -0.25 6.94 6.94 5.14 -2.45 Edwards Lifesciences Corporation 0.51% 0 0 Pioneer Natural Resources Company 0.50% Prospectus Exp Ratio Turnover Ratio Mattel, Inc. 0.50% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 33

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -20 Up/Down Market Capture Ratio -40 Jan-10 - Dec-12 250 -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 MSCI US Mid Cap 450 Index USD 175 150 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 125 Vanguard Mid Cap Index Adm 34.24 20.42 14.04 13.69 6.17 -41.78 40.48 25.59 -1.97 15.99 100 MSCI US Mid Cap 450 Index USD 39.05 20.52 13.94 13.75 6.19 -41.80 40.49 25.69 -1.91 16.04 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 3 1.0 25 11 0 0 20 40 60 80 100 120 140 160 180 200 0.9 10 2 Down Mkt Capture Ratio, % 0.8 20 9 1 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm Total Annualized StdDev, % Excess Annualized StdDev, % 8 0.7 MSCI US Mid Cap 450 Index USD 0 7 0.6 15 Sharpe Ratio Alpha, % -1 6 0.5 -2 5 0.4 10 Return vs. Risk 4 -3 0.3 Jan-10 - Dec-12 3 -4 25 0.2 5 2 -5 0.1 20 1 Total Annualized Return, % -6 0.0 0 0 15 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile Vanguard Mid Cap Index Adm MSCI US Mid Cap 450 Index USD 10 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 5 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error Vanguard Mid Cap Index Adm -0.06 1.00 100.00 0.75 17.71 0.02 0 MSCI US Mid Cap 450 Index USD 0.00 1.00 100.00 0.76 17.71 0.00 Universe(5%) 2.99 1.24 99.31 0.93 22.68 10.03 -5 0 5 10 15 20 25 30 35 40 Universe(25%) 0.16 1.06 98.55 0.76 19.15 5.89 Universe(Median) -0.83 1.02 96.34 0.70 18.14 3.93 Total Annualized StdDev, % Universe(75%) -2.54 0.92 93.37 0.59 17.03 2.41 Morningstar Midcap Blend Universe Vanguard Mid Cap Index Adm Universe(95%) -5.97 0.71 83.70 0.40 13.53 1.56 Cash MSCI US Mid Cap 450 Index USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 34

Quarterly Investment Monitor Data as of 12/31/2012 Target Small Capitalization Value T 4.72 2.35 Portfolio Information Investment Strategy Summary % Cash Ticker TASVX % US Stocks The investment seeks above-average capital appreciation. The fund normally invests at least Morningstar Category Small Value % Bonds 80% of investable assets in common stocks of small companies. Small companies are those Avg Mkt Cap $MM 1851.62 % Non-US Stocks companies with market capitalizations comparable to those in the Russell 2000 Value Index. Cat Med Mkt Cap $MM 1302.61 % Pref It invests in stocks of small companies that the advisor believe are undervalued and have an Net Assets $MM 1219.57 above-average potential to increase in price, given the company's sales, earnings, book % Conv Turnover Ratio 37.00 value, cash flow and recent performance. % Other % Assets in Top 10 Holdings 9.22 % Non-US Bonds Total Number of Holdings 666.00 _________________________________________________________________________ Manager Name Morley D. Campbell Manager Tenure 4.25 92.88 Fund Incept Date 01/05/1993 Prospectus Exp Ratio 0.71 Phone Number 800-225-1852 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 97.54 % Cash 4.72 25 % Canada 1.14 % US Stocks 92.88 % Latin America 0.43 % Bonds 0.00 % United Kingdom 0.03 % Non-US Stocks 2.35 20 % Eurozone 0.63 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 0.05 3 Year Mstar Rating % Africa 0.00 % Non-US Bonds 0.00 % Rank Cat 3 Yr 39 15 % Middle East 0.24 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 30 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 7 10 % Asia - Emerging 0.00 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 8.09 Avg Eff Duration NA 2 200 % Communication Services 0.50 Effective Maturity NA 0 % Consumer Cyclical 11.87 Avg Credit Quality NA 180 % Consumer Defensive 4.94 US Govt/ Agency NA % Healthcare 7.75 AAA NA 160 % Industrials 23.29 AA NA -5 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 5.78 A NA 140 % Technology 8.71 BBB NA % Energy 6.39 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 17.88 B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 4.80 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 Aaron's, Inc. 1.28% Target Small Capitalization Value T 3.75 14.14 14.14 11.98 5.24 60 Bristow Group, Inc. 1.17% S&P 600 Index 2.22 16.33 16.33 14.07 5.14 Amerigroup Corporation 1.06% Universe(5%) 5.89 23.61 23.61 15.78 7.69 Teleflex Inc. 0.95% 40 Universe(25%) 3.87 17.70 17.70 13.53 4.84 PVH Corp 0.83% Universe(Median) 2.55 15.58 15.58 12.12 3.58 Valmont Industries, Inc. 0.80% 20 Universe(75%) 1.63 13.57 13.57 10.46 2.44 Hexcel Corporation 0.80% Universe(95%) -0.02 7.60 7.60 6.88 -0.37 Silgan Holdings, Inc. 0.79% 0 0 Raymond James Financial Inc 0.79% Prospectus Exp Ratio Turnover Ratio Trustmark Corporation 0.77% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 35

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -20 Up/Down Market Capture Ratio -40 Jan-10 - Dec-12 250 -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 14.14 100 S&P 600 Index 38.79 22.65 7.68 15.12 -0.30 -31.07 25.57 26.31 1.02 16.33 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 2 0.9 25 10 0 0 25 50 75 100 125 150 175 200 225 1 0.8 9 Down Mkt Capture Ratio, % 20 8 0 0.7 Morningstar SmallCap Blend Universe Target Small Capitalization Value T Total Annualized StdDev, % Excess Annualized StdDev, % 7 S&P 600 Index -1 0.6 15 6 Sharpe Ratio Alpha, % -2 0.5 5 -3 0.4 10 4 Return vs. Risk -4 0.3 3 Jan-10 - Dec-12 -5 0.2 20 5 2 18 -6 0.1 1 16 Total Annualized Return, % -7 0.0 0 0 14 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 12 Target Small Capitalization Value T S&P 600 Index 10 8 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 6 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 4 Target Small Capitalization Value T -0.80 0.91 98.06 0.72 17.68 3.00 2 S&P 600 Index 0.00 1.00 100.00 0.78 19.22 0.00 0 Universe(5%) 1.30 1.19 99.44 0.82 24.10 9.28 -2 0 5 10 15 20 25 30 35 40 45 Universe(25%) -0.54 1.07 98.52 0.73 20.95 5.33 Universe(Median) -2.06 1.02 97.09 0.66 20.11 3.81 Total Annualized StdDev, % Universe(75%) -3.54 0.98 94.49 0.59 18.98 2.60 Morningstar SmallCap Blend Universe Target Small Capitalization Value T Universe(95%) -6.66 0.82 86.17 0.40 16.67 1.92 Cash S&P 600 Index City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 36

Quarterly Investment Monitor Data as of 12/31/2012 American Funds New Perspective R6 7.74 1.55 Portfolio Information Investment Strategy Summary % Cash Ticker RNPGX % US Stocks The investment seeks long-term growth of capital; future income is a secondary objective. Morningstar Category World Stock 38.69 % Bonds The fund seeks to take advantage of investment opportunities generated by changes in Avg Mkt Cap $MM 43325.20 % Non-US Stocks international trade patterns and economic and political relationships by investing in common Cat Med Mkt Cap $MM 25224.82 % Pref stocks of companies located around the world. In pursuing its primary investment objective, Net Assets $MM 43579.90 it invests primarily in common stocks that the investment adviser believes have the % Conv Turnover Ratio 16.00 potential for growth. In pursuing its secondary objective, the fund invests in common stocks % Other % Assets in Top 10 Holdings 18.47 of companies with the potential to pay dividends in the future. % Non-US Bonds Total Number of Holdings 290.00 Manager Name Brady L. Enright _________________________________________________________________________ 51.86 Manager Tenure 7.09 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 42.73 % Cash 7.74 25 % Canada 3.13 % US Stocks 38.69 % Latin America 2.81 % Bonds 0.16 % United Kingdom 7.98 % Non-US Stocks 51.86 20 % Eurozone 15.59 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 12.28 % Conv 0.00 Mstar Rating % Europe - Emerging 0.00 % Other 1.55 3 Year Mstar Rating 15 % Africa 3.11 % Non-US Bonds 0.00 % Rank Cat 3 Yr 28 % Middle East 0.00 5 Year Mstar Rating % Japan 4.30 % Rank Cat 5 Yr 16 10 % Australasia 2.13 10 Year Mstar Rating % Asia - Developed 4.65 % Rank Cat 10 Yr 23 % Asia - Emerging 1.29 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0 % Basic Materials 6.88 Avg Eff Duration NA 3 180 % Communication Services 2.69 Effective Maturity NA % Consumer Cyclical 15.70 Avg Credit Quality NA -5 160 % Consumer Defensive 13.00 US Govt/ Agency NA % Healthcare 17.40 AAA NA % Industrials 12.29 AA NA 140 -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.24 A NA % Technology 14.55 BBB NA 2 120 % Energy 5.93 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 10.36 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.95 Below B NA Ratio 100 American Funds New Perspective R6 MSCI AC World Index ND USD NR/NA NA Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Novo Nordisk A/S 4.99% 1 60 American Funds New Perspective R6 4.21 21.19 21.19 8.30 1.69 Amazon.com Inc 2.25% MSCI AC World Index ND USD 2.88 16.13 16.13 6.63 -1.16 Google, Inc. Class A 1.78% 40 Universe(5%) 7.43 22.97 22.97 11.43 3.80 Home Depot, Inc. 1.65% Universe(25%) 5.01 19.76 19.76 8.75 1.14 Newmont Mining Corporation 1.41% Universe(Median) 3.71 15.94 15.94 6.93 -0.51 British American Tobacco PLC 1.39% 20 Universe(75%) 2.11 12.97 12.97 4.88 -2.43 Naspers Ltd 1.36% Universe(95%) -0.78 4.91 4.91 0.43 -5.37 Nestle SA 1.27% 0 0 America Movil, S.A.B. de C.V. ADR 1.21% Prospectus Exp Ratio Turnover Ratio ACE Ltd 1.16% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 37

Quarterly Investment Monitor Data as of 12/31/2012 American Funds New Perspective R6 Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 50 20 Total Return, % 75 0 100 -20 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -40 Up/Down Market Capture Ratio Jan-10 - Dec-12 140 -60 120 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 100 Up Mkt Capture Ratio, % American Funds New Perspective R6 MSCI AC World Index ND USD 80 60 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 40 American Funds New Perspective R6 36.76 14.27 11.28 19.87 16.03 -37.83 37.73 13.11 -7.33 21.19 20 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 0 -20 -40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error -60 6 0.9 25 12 -80 0 20 40 60 80 100 120 140 160 0.8 Down Mkt Capture Ratio, % 4 10 20 0.7 Morningstar World Stock Universe American Funds New Perspective R6 Total Annualized StdDev, % Excess Annualized StdDev, % 2 0.6 8 MSCI AC World Index ND USD 15 Sharpe Ratio 0 Alpha, % 0.5 6 0.4 -2 10 Return vs. Risk 0.3 4 Jan-10 - Dec-12 -4 0.2 20 5 2 15 -6 0.1 Total Annualized Return, % 10 -8 0.0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 0 American Funds New Perspective R6 MSCI AC World Index ND USD -5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -15 American Funds New Perspective R6 1.87 0.94 98.01 0.56 16.57 2.53 MSCI AC World Index ND USD 0.00 1.00 100.00 0.45 17.37 0.00 -20 Universe(5%) 5.88 1.17 98.07 0.85 21.28 11.19 -25 0 5 10 15 20 25 30 35 Universe(25%) 2.21 1.07 96.74 0.57 19.41 7.10 Universe(Median) 0.46 1.02 94.53 0.46 18.16 4.99 Total Annualized StdDev, % Universe(75%) -1.82 0.85 87.32 0.34 16.57 3.73 Morningstar World Stock Universe American Funds New Perspective R6 Universe(95%) -6.09 0.63 68.44 0.12 12.31 2.49 Cash MSCI AC World Index ND USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 38

Quarterly Investment Monitor Data as of 12/31/2012 Harding Loevner Global Equity Inst 4.93 Portfolio Information Investment Strategy Summary % Cash Ticker HLMVX % US Stocks The investment seeks long-term capital appreciation. The fund invests in companies based 53.22 Morningstar Category World Stock % Bonds in the U.S. and other developed markets, as well as in emerging and frontier markets. It Avg Mkt Cap $MM 30676.88 % Non-US Stocks invests at least 80% of net assets in common stocks, preferred stock, rights and warrants Cat Med Mkt Cap $MM 25224.82 % Pref issued by companies that are based both inside and outside the United States, securities Net Assets $MM 429.03 convertible into such securities and investment companies that invest in the types of % Conv Turnover Ratio 40.00 securities in which the fund would normally invest. The fund normally holds 35-75 % Other % Assets in Top 10 Holdings 30.14 investments across at least 15 countries. % Non-US Bonds Total Number of Holdings 67.00 41.85 Manager Name Peter J. Baughan _________________________________________________________________________ Manager Tenure 9.85 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 55.97 % Cash 0.00 25 % Canada 1.25 % US Stocks 53.22 % Latin America 1.81 % Bonds 0.00 % United Kingdom 5.53 % Non-US Stocks 41.85 20 % Eurozone 7.81 % Pref 0.00 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 7.92 % Conv 0.00 Mstar Rating % Europe - Emerging 2.26 % Other 4.93 3 Year Mstar Rating 15 % Africa 1.39 % Non-US Bonds 0.00 % Rank Cat 3 Yr 37 % Middle East 0.00 5 Year Mstar Rating % Japan 9.64 % Rank Cat 5 Yr 18 10 % Australasia 1.37 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 39 % Asia - Emerging 5.05 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0 % Basic Materials 3.76 Avg Eff Duration NA 3 180 % Communication Services 1.51 Effective Maturity NA % Consumer Cyclical 18.13 Avg Credit Quality NA -5 160 % Consumer Defensive 12.33 US Govt/ Agency NA % Healthcare 8.48 AAA NA % Industrials 11.63 AA NA 140 -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 0.00 A NA % Technology 21.73 BBB NA 2 120 % Energy 6.46 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 15.96 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 Below B NA Ratio 100 Harding Loevner Global Equity Inst MSCI AC World Index ND USD NR/NA NA Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Northern Instl Fds 4.93% 1 60 Harding Loevner Global Equity Inst 1.07 17.42 17.42 7.58 1.49 Wells Fargo & Co 3.59% MSCI AC World Index ND USD 2.88 16.13 16.13 6.63 -1.16 eBay Inc 3.52% 40 Universe(5%) 7.43 22.97 22.97 11.43 3.80 Unicharm Corp 3.12% Universe(25%) 5.01 19.76 19.76 8.75 1.14 Microsoft Corporation 2.83% Universe(Median) 3.71 15.94 15.94 6.93 -0.51 Nestle SA ADR 2.81% 20 Universe(75%) 2.11 12.97 12.97 4.88 -2.43 Schlumberger NV 2.55% Universe(95%) -0.78 4.91 4.91 0.43 -5.37 Fanuc Corp 2.39% 0 0 Apple Inc 2.22% Prospectus Exp Ratio Turnover Ratio Emerson Electric Co. 2.17% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 39

Quarterly Investment Monitor Data as of 12/31/2012 Harding Loevner Global Equity Inst Annual Performance vs. Peer Group 3 Year Rolling Return Rank within Category 60 0 40 25 Total Return Rank, % 50 20 Total Return, % 75 0 100 -20 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -40 Up/Down Market Capture Ratio Jan-10 - Dec-12 140 -60 120 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 100 Up Mkt Capture Ratio, % Harding Loevner Global Equity Inst MSCI AC World Index ND USD 80 60 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 40 Harding Loevner Global Equity Inst 31.51 7.61 16.65 17.84 16.39 -38.29 40.16 15.55 -8.22 17.42 20 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 0 -20 -40 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error -60 6 0.9 25 12 -80 0 20 40 60 80 100 120 140 160 0.8 Down Mkt Capture Ratio, % 4 10 20 0.7 Morningstar World Stock Universe Harding Loevner Global Equity Inst Total Annualized StdDev, % Excess Annualized StdDev, % 2 0.6 8 MSCI AC World Index ND USD 15 Sharpe Ratio 0 Alpha, % 0.5 6 0.4 -2 10 Return vs. Risk 0.3 4 Jan-10 - Dec-12 -4 0.2 20 5 2 15 -6 0.1 Total Annualized Return, % 10 -8 0.0 0 0 5 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 0 Harding Loevner Global Equity Inst MSCI AC World Index ND USD -5 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr -10 Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error -15 Harding Loevner Global Equity Inst 1.27 0.94 95.33 0.51 16.66 3.77 MSCI AC World Index ND USD 0.00 1.00 100.00 0.45 17.37 0.00 -20 Universe(5%) 5.88 1.17 98.07 0.85 21.28 11.19 -25 0 5 10 15 20 25 30 35 Universe(25%) 2.21 1.07 96.74 0.57 19.41 7.10 Universe(Median) 0.46 1.02 94.53 0.46 18.16 4.99 Total Annualized StdDev, % Universe(75%) -1.82 0.85 87.32 0.34 16.57 3.73 Morningstar World Stock Universe Harding Loevner Global Equity Inst Universe(95%) -6.09 0.63 68.44 0.12 12.31 2.49 Cash MSCI AC World Index ND USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 40

Quarterly Investment Monitor Data as of 12/31/2012 Vanguard Emerging Mkts Stock Idx I 1.27 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 19047.00 % Non-US Stocks fund employs an indexing investment approach by investing substantially all (normally Cat Med Mkt Cap $MM 15161.94 % Pref about 95%) of its assets in the common stocks included in the MSCI Emerging Markets Net Assets $MM 75732.08 Index, while employing a form of sampling to reduce risk. The MSCI Emerging Markets Index % Conv Turnover Ratio 8.00 includes approximately 820 common stocks of companies located in emerging markets % Other % Assets in Top 10 Holdings 14.05 around the world. % Non-US Bonds Total Number of Holdings 888.00 Manager Name Michael Perre _________________________________________________________________________ Manager Tenure 4.34 97.95 Fund Incept Date 05/04/1994 Prospectus Exp Ratio 0.13 Phone Number 800-662-7447 Performance vs. Peer Group Portfolio Region Portfolio Structure Closed to New Investors No % United States 0.36 % Cash 0.23 30 % Canada 0.00 % US Stocks 0.35 % Latin America 20.72 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 97.95 25 % Eurozone 0.00 % Pref 1.27 Portfolio Ratings Total Annualized Return, % % Europe - ex Euro 0.00 % Conv 0.00 Mstar Rating 20 % Europe - Emerging 9.82 % Other 0.20 3 Year Mstar Rating % Africa 8.18 % Non-US Bonds 0.00 % Rank Cat 3 Yr 54 % Middle East 0.00 5 Year Mstar Rating 15 % Japan 0.00 % Rank Cat 5 Yr 32 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 25.96 % Rank Cat 10 Yr 32 10 % Asia - Emerging 34.97 5 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group 0 % Basic Materials 12.06 Avg Eff Duration NA 3 200 % Communication Services 8.67 Effective Maturity NA % Consumer Cyclical 8.70 Avg Credit Quality NA 180 -5 % Consumer Defensive 8.20 US Govt/ Agency NA % Healthcare 1.11 AAA NA 160 % Industrials 7.58 AA NA -10 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 1.65 A NA 140 % Technology 14.49 BBB NA 2 % Energy 11.59 BB NA 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 22.84 B NA 120 Median to 75th Percentile 75th to 95th Percentile % Utilities 3.11 Below B NA Ratio Vanguard Emerging Mkts Stock Idx I MSCI EM NR USD NR/NA NA 100 Turnover 80 3 Year to 1 3 5 Top Ten Holdings Performance Months Date Year Years Years Samsung Electronics Co Ltd GDR 2.51% 1 60 Vanguard Emerging Mkts Stock Idx I 6.84 18.90 18.90 4.83 -0.81 China Mobile Ltd. 1.86% MSCI EM NR USD 5.58 18.22 18.22 4.66 -0.92 America Movil, S.A.B. de C.V. 1.39% Universe(5%) 9.11 25.41 25.41 7.94 2.63 China Construction Bank Corp H Shares 1.38% 40 Universe(25%) 7.22 20.75 20.75 6.34 -0.43 Taiwan Semiconductor Manufacturing ADR 1.38% Universe(Median) 6.34 19.28 19.28 4.92 -2.16 Gazprom OAO ADR 1.30% 20 Universe(75%) 5.55 16.34 16.34 2.27 -3.43 Samsung Electronics Co Ltd 1.20% Universe(95%) 3.94 11.34 11.34 -2.05 -8.46 Industrial And Commercial Bank Of China Ltd. 1.06% 0 0 CNOOC, Ltd. 1.01% Prospectus Exp Ratio Turnover Ratio Hyundai Motor Co Ltd 0.97% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 41

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -40 Up/Down Market Capture Ratio -60 Jan-10 - Dec-12 250 -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 MSCI EM 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 18.90 100 MSCI EM NR USD 55.82 25.55 34.00 32.14 39.42 -53.33 78.51 18.88 -18.42 18.22 75 50 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 25 4 0.5 25 10 0 0 25 50 75 100 125 150 175 200 225 3 9 Down Mkt Capture Ratio, % 2 0.4 20 8 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Total Annualized StdDev, % Excess Annualized StdDev, % 1 7 MSCI EM NR USD 0 0.3 15 6 Sharpe Ratio Alpha, % -1 5 -2 0.2 10 4 Return vs. Risk -3 3 Jan-10 - Dec-12 -4 15 -5 0.1 5 2 -6 1 Total Annualized Return, % 10 -7 0.0 0 0 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 5 Vanguard Emerging Mkts Stock Idx I MSCI EM NR USD 0 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 Emerging Mkts Stock Idx I 0.19 1.01 98.13 0.32 22.26 3.06 -5 MSCI EM NR USD 0.00 1.00 100.00 0.31 21.80 0.00 Universe(5%) 3.54 1.12 98.12 0.48 24.78 9.29 -10 0 5 10 15 20 25 30 35 40 45 50 Universe(25%) 1.74 1.02 97.11 0.39 22.76 5.24 Universe(Median) 0.31 1.00 96.09 0.32 22.12 4.58 Total Annualized StdDev, % Universe(75%) -2.19 0.94 95.01 0.21 21.25 3.92 Morningstar Emerging Markets Universe Vanguard Emerging Mkts Stock Idx I Universe(95%) -6.32 0.86 91.13 0.05 19.11 3.05 Cash MSCI EM NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 42

Quarterly Investment Monitor Data as of 12/31/2012 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 8100.38 % Non-US Stocks performance of publicly traded equity REITs. The fund employs an indexing investment Cat Med Mkt Cap $MM 8062.88 % Pref approach designed to track the performance of the MSCI US REIT Index. The index is Net Assets $MM 29708.87 composed of stocks of publicly traded equity real estate investment trusts (known as REITs). % Conv Turnover Ratio 10.00 It attempts to replicate the index by investing all, or substantially all, of its assets in the % Other % Assets in Top 10 Holdings 45.59 stocks that make up the index, holding each stock in approximately the same proportion as % Non-US Bonds Total Number of Holdings 113.00 its weighting in the index. Manager Name Gerard C. O'Reilly Manager Tenure 16.65 _________________________________________________________________________ 99.45 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 0.55 30 % Canada 0.00 % US Stocks 99.45 % Latin America 0.00 % Bonds 0.00 % United Kingdom 0.00 % Non-US Stocks 0.00 25 % 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 21 20 % Middle East 0.00 5 Year Mstar Rating % Japan 0.00 % Rank Cat 5 Yr 22 % Australasia 0.00 10 Year Mstar Rating % Asia - Developed 0.00 % Rank Cat 10 Yr 34 15 % Asia - Emerging 0.00 10 Sector Allocation Credit Quality Expense Ratio vs. Peer Group Turnover Ratio vs. Peer Group % Basic Materials 0.00 Avg Eff Duration NA 2 160 % Communication Services 0.00 Effective Maturity NA 5 % Consumer Cyclical 0.00 Avg Credit Quality NA % Consumer Defensive 0.00 US Govt/ Agency NA 140 % Healthcare 0.00 AAA NA % Industrials 0.00 AA NA 0 120 3 Months YTD 1 Year 3 Years 5 Years % Real Estate 100.00 A NA % Technology 0.00 BBB NA % Energy 0.00 BB NA 100 5th to 25th Percentile 25th to Median Prospectus Exp Ratio % Financial Services 0.00 B NA Median to 75th Percentile 75th to 95th Percentile % Utilities 0.00 Below B NA Ratio Vanguard REIT Index I MSCI US REIT NR USD NR/NA NA 1 80 Turnover 3 Year to 1 3 5 Top Ten Holdings 60 Performance Months Date Year Years Years Simon Property Group Inc 10.78% Vanguard REIT Index I 2.50 17.65 17.65 18.03 6.11 Public Storage 4.75% MSCI US REIT NR USD 2.17 16.47 16.47 16.70 4.11 40 HCP Inc 4.37% Universe(5%) 4.16 28.13 28.13 19.18 8.30 Ventas Inc 4.29% Universe(25%) 2.71 18.17 18.17 18.14 6.07 Equity Residential 4.05% 20 Universe(Median) 2.31 17.01 17.01 17.39 5.23 Boston Properties Inc 3.88% Universe(75%) 1.99 15.89 15.89 15.79 3.62 Prologis Inc 3.78% Universe(95%) 1.21 15.05 15.05 13.13 0.05 Health Care REIT, Inc. 3.45% 0 0 Vornado Realty Trust 3.17% Prospectus Exp Ratio Turnover Ratio AvalonBay Communities Inc 3.04% City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 43

Quarterly Investment Monitor Data as of 12/31/2012 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 Jan-06 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 -30 Up/Down Market Capture Ratio -40 Jan-10 - Dec-12 160 -50 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 140 Up Mkt Capture Ratio, % 120 Vanguard REIT Index I MSCI US REIT NR USD 100 Annual Return % 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 80 Vanguard REIT Index I 35.65 30.93 12.05 35.15 -16.38 -36.95 29.76 28.56 8.70 17.65 MSCI US REIT NR USD NA NA NA 34.18 -17.84 -39.05 26.27 26.97 7.48 16.47 60 40 20 3 Yr Alpha 3 Yr Sharpe Ratio 3 Yr St Dev 3 Yr Tracking Error 5 2 22 11 0 -20 0 20 40 60 80 100 120 140 160 20 10 4 Down Mkt Capture Ratio, % 18 9 Morningstar Real Estate Universe Vanguard REIT Index I Excess Annualized StdDev, % 3 Total Annualized StdDev, % 16 8 MSCI US REIT NR USD 2 14 7 Sharpe Ratio Alpha, % 12 6 1 1 10 5 Return vs. Risk 0 8 4 Jan-10 - Dec-12 6 3 -1 35 4 2 -2 30 2 1 Total Annualized Return, % -3 0 0 0 25 5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile 20 Vanguard REIT Index I MSCI US REIT NR USD 15 MPT 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr 3 Yr Statistics Alpha Beta R-Squared Sharpe Ratio St Dev Tracking Error 10 Vanguard REIT Index I 1.15 1.00 99.99 0.99 18.29 0.20 5 MSCI US REIT NR USD 0.00 1.00 100.00 0.93 18.30 0.00 Universe(5%) 4.44 1.07 99.72 1.33 20.70 10.21 0 0 5 10 15 20 25 30 Universe(25%) 1.29 1.01 99.51 1.00 18.65 2.67 Universe(Median) 0.51 1.00 99.30 0.96 18.38 1.61 Total Annualized StdDev, % Universe(75%) -0.30 0.97 98.12 0.91 17.90 1.35 Morningstar Real Estate Universe Vanguard REIT Index I Universe(95%) -2.95 0.85 79.09 0.68 15.87 1.03 Cash MSCI US REIT NR USD City of Dover, Delaware Other Postemployment Benefit (OPEB) GASB 45 44

Quarterly Investment Monitor Data as of 12/31/2012 Glossary Alpha (3 Yr) % Assets in Top 10 Holdings Alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as The aggregate assets, expressed as a percentage, of the fund's top 10 portfolio holdings. This figure is meant to be a measure of portfolio measured by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative risk. Specifically, the higher the percentage, the more concentrated the fund is in a few companies or issues, and the more the fund is alpha indicates the portfolio has underperformed, given the expectations established by beta. susceptible to the market fluctuations in these few holdings. The figure is calculated from the most recent available fund holdings. Average Effective Duration Price/Book Ratio TTM A measure of a fund's interest-rate sensitivity--the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. The weighted average of the price/book ratios of all the stocks in a fund’s portfolio. The P/B ratio of a company is calculated by dividing the Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while market price of its stock by the company’s per-share book value. Stocks with negative book values are excluded from this calculation. In shorter maturities and higher coupons shorten duration. The relationship between funds with different durations is straightforward: A theory, a high P/B ratio indicates that the price of the stock exceeds the actual worth of the company's assets, while a low P/B ratio indicates fund with a duration of 10 years is twice as volatile as a fund with a five-year duration. Morningstar prints an average effective duration that the stock is a bargain. statistic that incorporates call, put, and prepayment possibilities. Price/Earnings Ratio TTM Average Effective Maturity The weighted average of the price/earnings ratios of the stocks in a fund’s portfolio. The P/E ratio of a stock is calculated by dividing the Average effective maturity is a weighted average of all the effective maturities of the bonds in a portfolio. Effective maturity takes into current price of the stock by its trailing 12 months’ earnings per share. In computing the average, Morningstar weights each portfolio holding consideration mortgage prepayments, puts, calls, adjustable coupons, and other features of individual bonds and is thus a more by the percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund’s final P/E. accurate measure of interest-rate sensitivity. Longer-maturity funds are generally considered more interest-rate sensitive than their shorter counterparts. R-Squared Beta Reflects the percentage of a fund’s movements that can be explained by movements in its benchmark index. An R-squared of 100 indicates that all movements of a fund can be explained by movements in the index. Thus, index funds that invest only in S&P 500 stocks will have an A measure of a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. Morningstar calculates beta by R-squared very close to 100. Conversely, a low R-squared indicates that very few of the fund’s movements can be explained by movements in 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 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 downward Standard deviation is the statistical measurement of dispersion about an average, which depicts how widely a stock or portfolio’s returns variation. The greater the variation, the larger the penalty. Funds are ranked within their categories and stars are assigned as follows: 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 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 category portfolio’s holdings that have changed over the past year. 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 12/31/2012 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