Berlin 4Q17 ESTown of Berlin
Executive Summary - Fourth Quarter 2017
One Hundred Northfield Drive, Windsor, CT 06095 Toll Free:866.466.9412 www.fiallc.com
the ded ction of transaction and/or c stodial charges the ded ction of an
ImportantDisclosureInformation:Past performance may not be indicative
of future results.Account information has been compiled solely by
Fiduciary Investment Advisors,LLC,has not been independently verified,
and does not reflect the impact of taxes on non-qualified accounts.In
preparing this report,Fiduciary Investment Advisors,LLC has relied upon
information provided by third party sources.A copy of our current
written disclosure statement discussing our advisory services and fees
continues to remain available for your review upon request.Historical
performance results for investment indices and/or categories have been
provided for general comparison purposes only,and generally do not reflect
the deduction of transaction and/or custodial charges,the deduction of an
investment managementfee, nor the impact of taxes,the incurrence of
which would have the effect of decreasing historical performance results.It
should not be assumed that your account holdings correspond directly to
any comparative indices.
2
Save the Date - FIA 2018 Client Conference
Thursday, September 20, 2018, Hartford, CT
Formal invitation to follow
Keynote Speaker: Liz Ann Sonders
Senior VP & Chief Investment Strategist
Charles Schwab
3
Celebrated our 11th anniversary as an independent firm
Expanded to a 67‐person staff, including 20 experienced Investment Consultants
Advise over 350 institutions, with client assets exceeding $64 billion
Maintained a client retention ratio in excess of 99%
Named as one of the Best Places to Work by the Hartford Business Journal for the seventh year in
a row, as well as one of the Best Places to Work by Pensions & Investments for the third time
Awarded a Best of Business Award for Private Wealth Management by the Hartford Business
Journal
Received recognition by Pensions and Investments as one of the top 50 investment consulting
firms, ranked by worldwide institutional assets
Hosted our ninth annual client conference, third year in Newport, Rhode Island
Recognized four new partners as we continued our commitment to expand ownership
Continued Community Service Committee work to support local non‐profits
Experienced growth in each of our service areas primarily through referrals
•Defined Contribution Plans•Defined Benefit Plans•Endowments & Foundations•Municipal•Wealth Advisory Services•Discretionary Investment Services for Individuals and Institutions
FIA 2017 Year -End Firm Update
4
Fiduciary Governance CalendarSection 1
Fourth Quarter 2017 Executive SummarySection 2
Table of Contents
SRI Balanced SearchSection 3
International Large Cap Blend Search Section 4
5
Fiduciary Governance Calendar
6
3rd Quarter: Participant Focus
Investment Review
Recordkeeper Services Update
Plan Demographic Review
Education & Advice Review¹
Plan Design Benchmarking
4th Quarter: Investment Focus
Investment Review
Investment Menu Review
Asset Class Updates
Trends and Best Practices
QDIA Analysis
1st Quarter: Fee Focus
Investment Review
Administrative Fee Review
Investment Expense Analysis
Benchmarking and Trends
Recordkeeper Negotiations
2nd Quarter: Practice & Policy Focus
Investment Review
Investment Policy Statement Review
Regulatory and Legislative Update
Committee Best Practices
Bonding and Fiduciary Insurance
Fiduciary Governance Calendar
¹ Where applicable, FIA is recommending that plan fiduciaries prudently select and monitor participant advice providers.
7
Your QDIA Analysis
8
Target Date Funds Due Diligence
•Target date funds have continued to become increasingly more popular investment options within defined
contribution retirement plans.
•Due to the prominence of target date funds in qualified retirement plans,the U.S.Department of Labor has
emphasized the significance of the selection,monitoring and evaluation process for plan fiduciaries in their
governance process (U.S.Department of Labor –Target Date Retirement Funds –Tips for ERISA Plan Fiduciaries –February 2013).
•Throughout the year FIA conducts due diligence on a variety of target date fund managers.Our due
diligence process includes meetings with the managers (conference calls,in-person and/or site visits)as well
as our annual due diligence questionnaire (DDQ)that includes the following information:
Investment team and process
Product changes
Strategic (glide path) and/or tactical asset allocation
Current asset class exposures
Changes to underlying funds
Ongoing research initiatives
Assumptions used to create glide path
Vehicle Information –Construction, assets, fees
9
Vanguard Target Retirement Funds Overview
Philosophy The Vanguard Target Retirement Funds are built based on a human and financial capital framework. This concept
supports the idea that equity exposure should decrease as more of a participants wealth shifts from earnings potential
to actual account balance.
Glide Path Characteristics
The glide path has four distinct phases: young, transition, early retirement, and late retirement. The glide path tends to
have a higher equity allocation relative to peers, particularly early in a participant’s career. While the glide path is
through-retirement in nature and it has a shorter roll down than most peers.
Tactical Asset Allocation The portfolios do not use tactical allocation.
Underlying Fund Characteristics The portfolios are built using exclusively passive underlying strategies.
Recent Changes No significant changes were made to the Target Retirement Funds in 2017.
Asset Class Construction
Equity The portfolios allocate to two equity strategies tracking a broad domestic equity index and a broad international equity index (including emerging markets) respectively. Vanguard seeks to have 40% of equity assets invested in non-U.S.
holdings.
Fixed Income
The portfolios allocate to two nominal fixed income strategies tracking a broad domestic fixed income index and a
broad international fixed income index respectively. Vanguard seeks to have 30% of fixed income assets invested in
non-U.S. issues.
Diversifying Assets In an effort to provide a hedge against inflation, Vanguard allocates to a short duration TIPS strategies in the 2020 and
shorter portfolios.
Vanguard Target Retirement Funds
Source: Vanguard 10
Fixed Income Other
High Yield Bonds International Developed Bonds Emerging Market Bonds Bank Loans Private Real Estate Commodities/
Real Assets
No Direct Indirect No No No
Beginning At Retirement Terminal Point Years Roll Down Continues After
Target
90%51%30%7 years
Strategy Overview
Glide Path Inception 2003
Target Date AUM $580 billion
# of Underlying Funds
(Total /Passive)
5 / 5
Portfolio Manager (Tenure at firm) William Coleman (11 years)
Walter Nejman (12 years)
Extended Asset Class Exposures
Glide Path Overview
Vanguard Target Retirement Funds
Source: Vanguard 11
Vanguard Target Retirement Funds
Glidepath Comparison
Volatility
0
2
4
6
8
10
12
2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 2000Standard Deviation –5 YearTarget Date Vintage
0
20
40
60
80
100
120
2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 2000Equity PercentageTarget Date Vintage
Source: Morningstar Direct 12
Five Year Risk-Reward
13
Five Year Market Capture
14
Investment Menu Design
15
Indexing in Major Asset
Classes
Index funds are not new to
defined contribution plans but
have become more prevalent in
recent years. Some plans are even
offering a “passive core” (a set of
low-cost index options spanning
the global capital markets), which
allows participants to create low
cost diversified portfolios.
Ten years ago, only 20% of plans
offered a “passive core,” while
today that number is greater than
60%.¹
Trends in Menu Design
Menu Simplification
Plan Sponsors continue to
evaluate the number of
investment options offered, in an
effort to simplify the decision
making process for participants
and in recognition of the gaining
popularity of target date funds.
After reaching a peak in 2011, the
average number of options has
declined to 17.9 today.¹
Investment Advice and
Managed Accounts
With the combination of improved
technology and new regulation,
participants will likely see an
increase in access to advice
solutions. This can be either
“point-in-time” or ongoing via
solutions such as Managed
Accounts.
Approximately 13% of participants
indicate they would like to receive
advice. This tends to increase with
age, account balance, and
contribution levels.²
¹ Vanguard: How America Saves 2009 and 2017
² TIAA: New Evidence on the Demand for Advice Within Retirement Plans 16
Intl /Global SpecialtyMoney Mkt / SV Fixed Income Multi-Asset
VantageTrust PLUS
Fund
401(a): 22.1%, 155
457: 9.0%, 54
RWP: 11.0%, 24
Harbor International
Ret
401(a):0.6%, 27
457:1.5%, 6
RWP: 0.0%, 0
Vanguard Total Intl
Stock Index
401(a): 2.3%, 51
457:5.1%, 32
RWP: 4.8%, 24
Oppenheimer
Developing Markets
401(a):0.7%, 38
457:0.6%, 19
RWP: 1.2%, 21
Metropolitan West Total
Return Bond M
401(a): 1.8%, 24
457: 4.1%, 14
RWP: 0.6%, 9
Vanguard Ttl Bond Mkt
Idx Adm
401(a): 1.6%, 31
457:1.9%, 20
RWP: 2.2%, 14
Vantagepoint Inflation
Protected Secs
401(a):0.3%, 22
457: 0.2%, 15
RWP: 0.4%, 9
Templeton Global Bond
R6
401(a): 0.4%, 29
457: 1.6%, 18
RWP: 0.4%, 14
VT Retirement
IncomeAdvantage
401(a):0.4%, 13
457:0.0%, 6
RWP: 0.0%, 0
Vanguard Target
Retirement Funds
401(a):54.2%, 233
457:61.2%, 119
RWP:67.6%, 65
Managed Accounts:
401(a): 23
457: 16
RWP: 23
Number of Participants with a Balance:
401(a): 363
457: 173
RWP: 89
Your Plan by the Numbers¹
Below is a “Gap”analysis illustrating the Plan’s investment menu offerings and respective asset classes.The percentage of total plan contributions by
investment made over the past 12 months and the number of participants invested in each fund are shown below:
Domestic Equity
Large Value
MFS Value R6
401(a):2.4%, 53
457: 1.4%,21
RWP: 1.4%,15
Large Blend
Vanguard 500 Index
Admiral
401(a): 4.7%, 84
457:5.2%, 38
RWP: 3.3%, 24
Large Growth
T. Rowe Price Instl
Large Cap Growth
401(a):4.2%, 60
457: 2.5%, 23
RWP: 1.0%, 4
Mid Value
Victory Sycamore
Established Value R6
401(a):1.2%, 42
457: 1.0%, 23
RWP:2.1%, 21
Small/Mid Blend
Vanguard Extended
Market Index Adm
401(a):2.4%, 63
457:2.2%, 29
RWP: 3.2%, 24
Mid Growth
Harbor Mid Cap
Growth Ret
401(a): 1.4%, 32
457: 1.3%, 9
RWP: 0.0%, 0
Small Value Small Growth
Eagle Small Cap
Growth R6
401(a): 0.5%, 16
457: 0.6%, 6
RWP: 0.0%, 0
Nuveen Real Estate
Secs
401(a):0.8%, 43
457:0.5%, 25
RWP: 0.7%, 25
KEY
Blue: Percentage of trailing 12 month contributions¹
Purple: Number of participants invested in fund.
¹ Source: ICMA
* Indicates designated QDIA
17
Benchmarking -Participant Utilization
The types of asset classes that will be offered in a plan is an important decision for any plan sponsor. While the types of asset classes offered have not
varied substantially by plan size or industry, participant utilization for most fund types have declined in recent years, as target date funds grow in
popularity. The average participant today uses 2.7 options, compared to 3.6 in 2007. Also, the percentage of participants holding a single fund
continues to increase from 30% in 2007 to 55% today, with 83% of single fund holders using a target date option.¹
67%63%
72%
89%
33%
19%19%
70%
17%
92%94%99%
90%90%89%88%85%
66%
32%
8%
31%
11%7%9%
17%
27%
12%
17%
10%
16%
4%5%2%
20%
5%
74%
23%
28%
13%17%17%13%15%13%
7%3%7%8%6%
48%
1%
7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage of Plans Offering Utilization by Participant When Offered
¹ Vanguard: How America Saves 2017
18
Contemplating Retirement Income
In recent years,the retirement industry has begun to look at in-plan income solutions that seek to address the longevity of participant spending in retirement.
While there may be a case to be made for an in-plan income producing solution,many plan sponsors remain concerned about offering retirement income
products,citing reasons such as fiduciary exposure (38%),high costs (33%),non-portability (29%)and risk exposure from the insurer (27%).¹As a result,allowing
participants to manage retirement income via systematic withdrawals or other distribution options remains the most common approach today.²
Common participant questions near and during retirement
¹ Plan Sponsor Counsel of America Survey² 2016 Plan Sponsor Defined Contribution Survey 19
Fourth Quarter 2017 Executive Summary
20
Market ReviewU.S. Treasury Curve 3m 2yr 5yr 10yr 30yr12/29/17 1.39 1.89 2.20 2.40 2.7409/29/17 1.06 1.47 1.92 2.33 2.8612/30/16 0.51 1.20 1.93 2.45 3.06Synchronized global growth remains the focal point ofinvestors’ attention,despite the current U.S economy pointingto somewhat later stage economic growth (e.g., fullemployment, modest wage growth). Whilethe standingrecovery is the third longest in U.S. history,economicexpansion overseas is generallyless mature, enabling, perhaps,additional and more impactful contributions to future globaleconomic growth.President Trump signed the $1.5 Trillion Tax Cuts and Jobs Actinto law in December, capping state and local tax deductions,adding a one‐time repatriation tax on overseas cash, andinstituting a permanent drop in the corporate tax rate, amongother policies. As expected,theFederalReservehikedratesanother quarter point, setting the federal funds target at1.25%‐1.50%, marking the third such hike of the year.The fourth quarter witnessed another round of strong resultsfrom global equity markets, led by the developing regions,specifically Asia. Emerging markets continued their globalleadership, as U.S. dollar weakness, substantial economicgrowth, and a solid rebound in corporate earnings helpedboost results.Developed equity markets also made agenerous contributionthis period, albeit at a slightly slowerpace than previous quarters.Topping off a very strong year,domestic equity marketswitnessed another quarter of solid performance,backed byrobust corporate earnings, continued healthy economicgrowth, and a momentous U.S. tax cut plan. Momentum helpedpushgrowth stocks well above their value counterpartsonceagain. Continuing this year’s trend,large caps outpaced smallcaps, after a slight slowdown in the third quarter.Returns were positive across most major global bond indexes.TheTreasury curve flattened, as shorter‐termyields rose morethan longer‐termyields, due in part to supply and economicexpectations. Investment‐grade corporate bondspreadstightenedamid strong demand, and the segmentoutperformed high yield.Commodities were positive in aggregateduring the fourthquarter, with energy and industrial metals leading the gains.Crude oil price’s ascent persisted during the period, touchingthree year highs, as OPEC extended their production cuts andgeopolitical tensions amplified supply concerns.Non‐U.S. earnings have recovered but are still below 2011 levels.0510152025303540452009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019EGDP Growth of Select Countries Tracked by the OECDContractingSlowingAcceleratingOECDEconomic Outlook November 2017. Slowing/Accelerating is relative to the previous year and still indicates positive GDP growth.21
Index ResultsU.S. EQUITYQUARTERYTD1 YEAR 3 YEAR 5 YEAR 10 YEARS&P 500 6.621.821.811.415.88.5Russell 10006.621.721.711.215.78.6Russell 1000 Value 5.313.713.78.714.07.1Russell 1000 Growth 7.930.230.213.817.310.0Russell Mid Cap 6.118.518.59.615.09.1Russell Mid Cap Value 5.513.313.39.014.79.1Russell Mid Cap Growth 6.825.325.310.315.39.1Russell 2000 3.314.614.610.014.18.7Russell 2000 Value 2.07.87.89.513.08.2Russell 2000 Growth4.622.222.210.315.29.2Russell 3000 6.321.121.111.115.68.6FTSE NAREIT Equity REITs Index1.55.25.25.69.57.4INTERNATIONAL EQUITYQUARTERYTD1 YEAR 3 YEAR 5 YEAR 10 YEARMSCI ACWI ex‐US 5.027.227.27.86.81.8MSCI EAFE 4.225.025.07.87.91.9MSCI EAFE Value3.221.421.46.46.91.1MSCI EAFE Growth5.228.928.99.28.82.7MSCI EAFE Small Cap6.133.033.014.212.95.8MSCI EM (Emerging Markets)7.437.337.39.14.31.7FIXED INCOMEQUARTERYTD1 YEAR 3 YEAR 5 YEAR 10 YEARBarclays U.S. Aggregate Bond0.43.53.52.22.14.0Barclays U.S. Gov/Credit Bond0.54.04.02.42.14.1Barclays Gov/Credit Long Bond2.810.710.74.54.47.3Barclays U.S. Corp High Yield0.57.57.56.45.88.0Barclays Municipal Bond0.75.45.43.03.04.5Barclays U.S. TIPS1.33.03.02.10.13.5BofA Merrill 3‐Month T‐Bill0.30.90.90.40.30.4NON‐TRADITIONALQUARTERYTD1 YEAR 3 YEAR 5 YEAR 10 YEARBloomberg Commodity Index4.71.71.7(5.0)(8.5)(6.8)HFRI Fund of Funds Index2.07.77.72.64.01.1NCREIF Property Index (9/30/2017)1.75.16.99.810.36.2CPI (9/30/2017)1.11.52.21.21.31.7Sources: Morningstar Direct, Standard & Poor’s, Russell, FTSE, MSCI, Barclays Capital, BofA Merrill Lynch, Bloomberg, HFRI, NCREIF. Data as of 12/31/2017 unless otherwise noted.22
Value Blend GrowthValue Blend Growth5.3 6.6 7.9Large13.7 21.7 30.25.5 6.1 6.8Mid13.3 18.5 25.32.0 3.3 4.6Small7.8 14.6 22.2Small Mid LargeSmall Mid Large6.1 5.2 4.0Dev33.0 29.0 24.09.2 7.5 7.4EM33.8 35.1 37.7Short Interm LongShort Interm Long‐0.3‐0.4 2.3Gov't0.4 1.1 8.50.0 0.2 3.3Corp1.9 3.9 12.1QTR1‐YearQTR1‐YearU.S. Equity Size and Style ReturnsInternational Equity Size and Region Returns (USD)QTR1‐YearFixed Income Term and Quality Returns (USD)Equity & Fixed Income ReviewSources: Morningstar Direct, FactSet, Standard & Poor’s, Russell, MSCI, Barclays Capital, Citigroup, BofA Merrill Lynch, Credit Suisse, JPMorgan. Data as of December 31, 2017 unless otherwise noted. The performance grids above are based on select Russell, MSCI and Barclays Capital indexes.Domestic equities pushed higher and capped off the second best year of thisdecade. The gapbetweengrowthandvaluewidenedfurther, led by the information technology and consumerdiscretionary sectors. Large‐cap stocks outpaced small caps both in the fourth quarter and for the2017calendar year.Emerging market equities produced their best return since 2009 and outpaced their developedmarket counterparts. The growth/value story continued within emerging markets as well, due tostrong performance from Asian technology companies. A strengthening euro and British poundrelative to the U.S. dollar added to performance for U.S. based investors.Emerging marketcurrencies were mixed, as many Asian currencies gained ground while LatinAmerican currencies fell.TheFederalReserveraisedthetargetonthefederalfundsrateforthefifth time in this hiking cycle;subsequently, short term interest rates rose. Demand for yield continuedto persist and, coupled withsubdued inflation, put downward pressure on long‐term rates. As a result,the yield curve flattened,and long duration assets outperformed. Credit spreads moved tighter, andspread sectors generallyoutpaced Treasuries.9.96.56.08.61.56.19.06.93.23.60.26.623.013.5‐1.022.222.121.038.823.810.8‐1.312.121.8‐5.00.05.010.015.020.025.030.035.040.045.0Cons.Disc.Cons.StaplesEnergy Financials HealthCareIndustrials Info.Tech.Materials RealEstateTelecom. Utilities S&P 500S&P 500 Sector ReturnsQTR1‐year4.9‐0.11.28.62.84.39.37.75.71.52.88.5‐2.04.311.87.6‐4.0‐2.00.02.04.06.08.010.012.014.0UnitedKingdomFrance Germany Japan Brazil Russia India ChinaMSCI Country Results 4Q 2017LocalUSD0.40.50.50.71.30.31.01.2‐0.33.54.07.55.43.00.97.54.28.32.72.66.22.42.31.21.25.7‐1.00.01.02.03.04.05.06.07.08.09.0BC Agg BC Gov/Crd BC US Cor HY BC Muni BC US TIPS ML 3M T‐Bill Citi WGBI CS Lev Loan JPM EMBI+Fixed Income Returns and Yields (%)QTR1‐YearYield23
Market ValuationsFactSet, Russell, S&P, iShares. Equity valuations are based on trailing 12‐month price‐to‐earnings “P/E” ratios as a percent of the range high. Data is for the period 12/31/2002 – 12/31/2017, except for MSCI Emerging Markets which is for the period 9/1/2003 – 12/31/2017. MSCI EAFE and MSCI EM are based on iShares ETFs. Sector valuations are based on S&P 500 sectors.*Post‐crisis averages are for the period 1/1/2010 – 12/31/2017.15‐year avg15‐year avgCurrent investment grade spreads are below the 15‐year average (159 bps) and post‐crisis average* (147 bps).High yield spreads remain below the 15‐year average ( 537 bps ) and post‐crisis average* (509 bps).99%99%99%99%99%92%89%86%83%76%68%0%10%20%30%40%50%60%70%80%90%100%Russell 3000ValueS&P 500Cons. Disc.Cons. Stpls. Russell 3000GrowthRussell 2000Utilities Health CareMSCI EAFEMSCI EM Info. TechEquity Valuations ‐Current P/E Relative to 15‐Year High24
Market ViewpointsThese viewpoints represent FIA’s general assessment of the highlighted capital markets comparisons over the next 18 months. These opinions are subject to modification as conditions in the markets or forecasting periods change. Clients should utilize these rankings in conjunction with other considerations that may be relevant to their particular circumstances.RationaleAsset AllocationFixed IncomeNeutral EquityEquityDomesticNeutral InternationalFixed IncomeTreasuriesNeutral CreditInt’l DevelopedNeutral Emerging MktsDomestic ValueNeutral Domestic GrowthDomestic Large CapNeutralDomestic Small CapShort DurationNeutralLong DurationWhile certain indications of market valuation remain somewhat elevated, equities continue to look more attractive relative to fixed income. Sturdy economic conditions and strong corporate fundamentals provide support for equity markets, whereas the outlook for higher interest rates may reduce future expected returns for fixed income markets.Advantageous valuations abroad, the strengthening economic environment, and continuing accommodative monetary policy favor non‐U.S. over domestic equities. Value equities in the U.S. now plot favorably compared to growth. Select price metrics have become somewhat more favorable, and the recent performance differential between the styles (value lagged growth by approximately 16% in 2017) heightens the potential for a measure of mean reversion.Fundamentals and valuations may provide a tailwind for emerging markets going forward, but these potential advantages are countered by geopolitical uncertainty and the pronounced performance surge in the space relative to developed markets. As such, our view between the two segments remains neutral.Credit spreads continued to tighten during the quarter and now sit near post crisis lows. We suspect the “beta” trade in credit is behind us and, as such, have moved to a neutral view. However, a favorable technical backdrop, a stable economic environment, and positive corporate fundamentals lend support to retaining meaningful exposure to credit, as spreads could persist at these levels for the foreseeable future.Interest rates remain at multi‐decade lows, while expectations for continued economic growth coupled with evolving central bank policies could put upward pressure on inflation. These conditions reinforce the potential for higher interest rates.Valuation considerations between large cap and small cap equities remain near long‐term averages and do not currently provide a differentiated opportunity for either capitalization segment.25
U.S. vs. International Equity Comparison00.511.522.51972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017Relative Cumulative ReturnS&P 500 vs. MSCI EAFE2/1/2002 – 11/30/2007S&P 500: 45.57%MSCI EAFE: 141.35%12/1/2007 – 12/31/2017S&P 500: 124.46%MSCI EAFE: 18.47%Source: MPI Stylus, FIA. Data from 12/31/1972 – 12/31/2017.'04'05'06'07'08'09'10'11'12'13'14'15'16'170.80.91.01.11.21.31.41.5AVG:1.121.26FactSetS&P 500/EAFE Relative PE - Trailing 12 Months12/31/2003 - 12/29/2017U.S stocks are trading above the average relative P/E.EAFE OutperformsS&P Outperforms26
Portfolio Considerations‐8‐6‐4‐20246810888990919293949596979899000102030405060708091011121314151617Russell 3000 Value ‐Russell 3000 Growth10‐Year Rolling Relative PerformanceSource: MPI Stylus. Data from 12/31/1988 – 12/31/2017.Value outperformsGrowth outperforms3003203403603804004209095100105110115120125HY OAS (bps)IG OAS (bps)2017 Option Adjusted SpreadsBB US Corp Inv GradeBB US Corp High Yield (RHS)Sources: FactSet, Bloomberg Barclays. Data from 12/31/2016 – 12/31/2017.2017 Change (bps)IG:‐30HY: ‐6627
Dec-2017 Sep-2017 Jun-2017 Mar-2017
($)%($)%($)%($)%
VantageTrust PLUS Fund R10 9,712,311 22.8 10,155,053 24.2 10,589,492 25.5 10,486,279 26.1
Stable Value / Money Market Funds 9,712,311 22.8 10,155,053 24.2 10,589,492 25.5 10,486,279 26.1
Metropolitan West Total Return Bond Plan 471,731 1.1 441,922 1.1 462,866 1.1 636,610 1.6
Vanguard Total Bond Market Index Adm 548,597 1.3 637,386 1.5 601,669 1.4 425,083 1.1
Vanguard Inflation-Protected Secs Adm 177,393 0.4 176,744 0.4 197,658 0.5 208,831 0.5
Templeton Global Bond R6 147,144 0.3 131,334 0.3 126,073 0.3 128,573 0.3
Fixed Income Funds 1,344,866 3.2 1,387,386 3.3 1,388,266 3.3 1,399,098 3.5
VantageTrust Retirement Income Advantage R5 1,462,425 3.4 1,437,032 3.4 1,379,673 3.3 1,344,286 3.3
Balanced Funds 1,462,425 3.4 1,437,032 3.4 1,379,673 3.3 1,344,286 3.3
MFS Value Fund R6 1,717,996 4.0 1,631,818 3.9 1,646,033 4.0 1,426,050 3.5
Vanguard 500 Index Admiral 3,050,427 7.1 2,927,864 7.0 2,658,448 6.4 2,597,792 6.5
T. Rowe Price Instl Large Cap Growth 3,404,048 8.0 3,161,836 7.5 2,908,920 7.0 2,647,721 6.6
Victory Sycamore Established Value R6 467,916 1.1 509,249 1.2 627,958 1.5 542,549 1.3
Vanguard Extended Market Idx Adm 1,091,344 2.6 1,046,488 2.5 1,000,506 2.4 989,697 2.5
Harbor Mid Cap Growth Retirement 762,490 1.8 568,452 1.4 599,618 1.4 607,786 1.5
Eagle Small Cap Growth A 359,381 0.8 235,062 0.6 202,342 0.5 90,627 0.2
Domestic Equity Funds 10,853,604 25.4 10,080,769 24.0 9,643,825 23.2 8,902,221 22.1
Harbor International Adm 429,606 1.0 410,155 1.0 394,896 1.0 366,360 0.9
Vanguard Total Intl Stock Index Adm 802,448 1.9 769,419 1.8 684,473 1.6 648,638 1.6
Oppenheimer Developing Markets I 363,095 0.9 347,679 0.8 301,595 0.7 215,299 0.5
International Equity Funds 1,595,150 3.7 1,527,254 3.6 1,380,964 3.3 1,230,297 3.1
Nuveen Real Estate Secs R6 260,370 0.6 282,740 0.7 269,659 0.6 266,842 0.7
Specialty Funds 260,370 0.6 282,740 0.7 269,659 0.6 266,842 0.7
Vanguard Target Retirement Income Inv 1,186,919 2.8 1,307,456 3.1 114,130 0.3 125,948 0.3
Vanguard Target Retirement 2010 Inv 0.00 0.0 0.00 0.0 1,258,022 3.0 1,307,495 3.2
Vanguard Target Retirement 2015 Inv 981,386 2.3 946,170 2.3 1,023,719 2.5 1,131,530 2.8
Vanguard Target Retirement 2020 Inv 3,306,957 7.7 3,602,451 8.6 3,658,734 8.8 3,532,598 8.8
Vanguard Target Retirement 2025 Inv 2,661,616 6.2 2,790,448 6.7 2,825,247 6.8 2,854,029 7.1
Vanguard Target Retirement 2030 Inv 3,742,204 8.8 3,266,534 7.8 3,026,001 7.3 2,994,524 7.4
Vanguard Target Retirement 2035 Inv 1,715,680 4.0 1,642,052 3.9 1,589,941 3.8 1,506,952 3.7
Vanguard Target Retirement 2040 Inv 2,217,695 5.2 2,036,037 4.9 1,905,409 4.6 1,792,011 4.5
Historical Balances by Investment
Berlin, CT Town DC Plan 401a
As of December 31, 2017
Source: ICMA
28
Historical Balances by Investment
Berlin, CT Town DC Plan 401a
As of December 31, 2017
Dec-2017 Sep-2017 Jun-2017 Mar-2017
($)%($)%($)%($)%
Vanguard Target Retirement 2045 Inv 863,237 2.0 792,792 1.9 788,297 1.9 731,684 1.8
Vanguard Target Retirement 2050 Inv 752,021 1.8 677,630 1.6 671,391 1.6 625,812 1.6
Vanguard Target Retirement 2055 Inv 13,977 0.0 9,404 0.0 4,572 0.0 2,941 0.0
Vanguard Target Retirement 2060 Inv 168 0.0 0.00 0.0 0.00 0.0 0.00 0.0
Target Date Funds 17,441,860 40.9 17,070,973 40.7 16,865,463 40.6 16,605,523 41.3
Berlin, CT Town DC Plan 401a 42,670,585 100.0 41,941,206 100.0 41,517,343 100.0 40,234,545 100.0
Source: ICMA
29
Dec-2017 Sep-2017 Jun-2017 Mar-2017
($)%($)%($)%($)%
VantageTrust PLUS Fund R10 1,581,505 16.3 1,611,778 16.3 1,668,128 17.1 1,662,710 17.8
Stable Value / Money Market Funds 1,581,505 16.3 1,611,778 16.3 1,668,128 17.1 1,662,710 17.8
Metropolitan West Total Return Bond Plan 114,929 1.2 177,739 1.8 173,903 1.8 359,514 3.8
Vanguard Total Bond Market Index Adm 160,606 1.7 376,149 3.8 376,996 3.9 220,463 2.4
Vanguard Inflation-Protected Secs Adm 31,029 0.3 49,941 0.5 52,111 0.5 50,921 0.5
Templeton Global Bond R6 47,664 0.5 67,734 0.7 69,288 0.7 91,612 1.0
Fixed Income Funds 354,228 3.7 671,564 6.8 672,297 6.9 722,510 7.7
VantageTrust Retirement Income Advantage R5 78,456 0.8 74,201 0.7 84,192 0.9 100,542 1.1
Balanced Funds 78,456 0.8 74,201 0.7 84,192 0.9 100,542 1.1
MFS Value Fund R6 277,570 2.9 263,795 2.7 250,956 2.6 278,257 3.0
Vanguard 500 Index Admiral 494,301 5.1 639,016 6.5 629,889 6.5 612,296 6.6
T. Rowe Price Instl Large Cap Growth 783,665 8.1 716,000 7.2 660,143 6.8 588,408 6.3
Victory Sycamore Established Value R6 127,422 1.3 150,559 1.5 170,368 1.7 125,959 1.3
Vanguard Extended Market Idx Adm 396,426 4.1 558,726 5.6 569,380 5.8 572,571 6.1
Harbor Mid Cap Growth Retirement 268,991 2.8 252,617 2.6 268,448 2.8 240,423 2.6
Eagle Small Cap Growth A 103,029 1.1 101,447 1.0 92,862 1.0 107,314 1.1
Domestic Equity Funds 2,451,404 25.3 2,682,161 27.1 2,642,045 27.1 2,525,228 27.0
Harbor International Adm 231,143 2.4 228,627 2.3 217,134 2.2 202,858 2.2
Vanguard Total Intl Stock Index Adm 229,562 2.4 208,414 2.1 202,273 2.1 182,527 2.0
Oppenheimer Developing Markets I 67,357 0.7 68,690 0.7 58,077 0.6 48,341 0.5
International Equity Funds 528,062 5.5 505,731 5.1 477,484 4.9 433,725 4.6
Nuveen Real Estate Secs R6 55,542 0.6 83,015 0.8 87,396 0.9 82,666 0.9
Specialty Funds 55,542 0.6 83,015 0.8 87,396 0.9 82,666 0.9
Vanguard Target Retirement Income Inv 462,646 4.8 452,111 4.6 23,594 0.2 23,379 0.3
Vanguard Target Retirement 2010 Inv 0.00 0.0 0.00 0.0 456,411 4.7 447,522 4.8
Vanguard Target Retirement 2015 Inv 412,547 4.3 395,365 4.0 443,584 4.6 429,567 4.6
Vanguard Target Retirement 2020 Inv 503,215 5.2 544,323 5.5 404,836 4.2 386,361 4.1
Vanguard Target Retirement 2025 Inv 990,879 10.2 939,072 9.5 1,018,836 10.5 873,049 9.3
Vanguard Target Retirement 2030 Inv 1,108,061 11.4 858,368 8.7 763,502 7.8 706,753 7.6
Vanguard Target Retirement 2035 Inv 735,594 7.6 695,449 7.0 660,360 6.8 629,028 6.7
Vanguard Target Retirement 2040 Inv 249,683 2.6 230,086 2.3 212,019 2.2 200,526 2.1
Historical Balances by Investment
Berlin, CT Town DC Plan 457
As of December 31, 2017
Source: ICMA
30
Historical Balances by Investment
Berlin, CT Town DC Plan 457
As of December 31, 2017
Dec-2017 Sep-2017 Jun-2017 Mar-2017
($)%($)%($)%($)%
Vanguard Target Retirement 2045 Inv 101,921 1.1 92,901 0.9 84,070 0.9 76,417 0.8
Vanguard Target Retirement 2050 Inv 69,322 0.7 60,699 0.6 45,955 0.5 40,036 0.4
Vanguard Target Retirement 2055 Inv 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0
Vanguard Target Retirement 2060 Inv 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0
Target Date Funds 4,633,868 47.9 4,268,374 43.1 4,113,165 42.2 3,812,640 40.8
Berlin, CT Town DC Plan 457 9,683,065 100.0 9,896,823 100.0 9,744,709 100.0 9,340,021 100.0
Source: ICMA
31
Dec-2017 Sep-2017 Jun-2017 Mar-2017
($)%($)%($)%($)%
VantageTrust PLUS Fund R10 24,117 9.3 23,829 9.6 20,743 9.7 16,384 9.5
Stable Value / Money Market Funds 24,117 9.3 23,829 9.6 20,743 9.7 16,384 9.5
Metropolitan West Total Return Bond Plan 902 0.3 184 0.1 413 0.2 1,792 1.0
Vanguard Total Bond Market Index Adm 8,502 3.3 8,971 3.6 8,349 3.9 6,004 3.5
Vanguard Inflation-Protected Secs Adm 1,367 0.5 1,385 0.6 1,228 0.6 926 0.5
Templeton Global Bond R6 1,450 0.6 1,110 0.4 961 0.4 1,015 0.6
Fixed Income Funds 12,221 4.7 11,649 4.7 10,952 5.1 9,737 5.7
VantageTrust Retirement Income Advantage R5 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0
Balanced Funds 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0
MFS Value Fund R6 2,441 0.9 1,883 0.8 5,379 2.5 3,380 2.0
Vanguard 500 Index Admiral 15,255 5.9 14,162 5.7 8,943 4.2 9,616 5.6
T. Rowe Price Instl Large Cap Growth 814 0.3 558 0.2 520 0.2 0.00 0.0
Victory Sycamore Established Value R6 4,731 1.8 6,148 2.5 7,552 3.5 5,316 3.1
Vanguard Extended Market Idx Adm 12,367 4.8 11,246 4.5 10,229 4.8 8,207 4.8
Harbor Mid Cap Growth Retirement 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0
Eagle Small Cap Growth A 0.00 0.0 383 0.2 101 0.0 0.00 0.0
Domestic Equity Funds 35,608 13.7 34,380 13.9 32,723 15.3 26,520 15.4
Harbor International Adm 0.00 0.0 0.00 0.0 0.00 0.0 0.00 0.0
Vanguard Total Intl Stock Index Adm 16,473 6.3 15,799 6.4 15,742 7.4 13,010 7.6
Oppenheimer Developing Markets I 5,000 1.9 4,591 1.8 3,484 1.6 3,389 2.0
International Equity Funds 21,473 8.3 20,390 8.2 19,225 9.0 16,399 9.5
Nuveen Real Estate Secs R6 3,999 1.5 3,826 1.5 3,709 1.7 3,268 1.9
Specialty Funds 3,999 1.5 3,826 1.5 3,709 1.7 3,268 1.9
Vanguard Target Retirement Income Inv 3,899 1.5 3,824 1.5 2,753 1.3 2,210 1.3
Vanguard Target Retirement 2010 Inv 0.00 0.0 0.00 0.0 504 0.2 0.00 0.0
Vanguard Target Retirement 2015 Inv 10,320 4.0 10,055 4.1 9,063 4.2 8,116 4.7
Vanguard Target Retirement 2020 Inv 13,138 5.1 12,327 5.0 10,557 4.9 8,893 5.2
Vanguard Target Retirement 2025 Inv 14,858 5.7 14,279 5.8 12,417 5.8 11,145 6.5
Vanguard Target Retirement 2030 Inv 18,942 7.3 17,556 7.1 15,330 7.2 13,356 7.8
Vanguard Target Retirement 2035 Inv 16,052 6.2 15,357 6.2 12,293 5.7 8,920 5.2
Vanguard Target Retirement 2040 Inv 13,434 5.2 12,647 5.1 10,456 4.9 7,955 4.6
Historical Balances by Investment
Town of Berlin
As of December 31, 2017
Source: ICMA
32
Historical Balances by Investment
Town of Berlin
As of December 31, 2017
Dec-2017 Sep-2017 Jun-2017 Mar-2017
($)%($)%($)%($)%
Vanguard Target Retirement 2045 Inv 35,266 13.6 33,080 13.3 27,553 12.9 21,983 12.8
Vanguard Target Retirement 2050 Inv 23,729 9.1 22,576 9.1 18,154 8.5 13,545 7.9
Vanguard Target Retirement 2055 Inv 11,969 4.6 11,389 4.6 7,458 3.5 3,734 2.2
Vanguard Target Retirement 2060 Inv 1,076 0.4 1,024 0.4 0.00 0.0 0.00 0.0
Target Date Funds 162,683 62.5 154,115 62.1 126,539 59.2 99,858 58.0
Robert Wolf Plan 260,101 100.0 248,189 100.0 213,891 100.0 172,167 100.0
Source: ICMA
33
1-50 Percentile =
51-75 Percentile =
76-100 Percentile =
QTR 1
Year
3
Years
5
Years
10
Years
Expense
Ratio %Manager Status
VantageTrust PLUS Fund R10 0.6 2.1 2.0 2.1 2.9 0.57 MAINTAIN
Citigroup 3 Month T-Bill Index 0.3 0.8 0.4 0.2 0.3 -
Metropolitan West Total Return Bond Plan*0.4 3.5 2.1 2.6 5.6 0.38 MAINTAIN
Bloomberg Barclays U.S. Aggregate Index 0.4 3.5 2.2 2.1 4.0 -
IM U.S. Broad Market Core+ Fixed Income (MF) Rank 45 76 76 45 12 0.83
Vanguard Total Bond Market Index Adm 0.4 3.6 2.2 2.0 3.9 0.05 MAINTAIN
Bloomberg Barclays U.S. Aggregate Index 0.4 3.5 2.2 2.1 4.0 -
IM U.S. Broad Market Core Fixed Income (MF) Rank 36 52 49 46 52 0.72
Vanguard Inflation-Protected Secs Adm 1.2 2.9 1.9 0.1 3.4 0.10 MAINTAIN
Bloomberg Barclays U.S. TIPS Index 1.3 3.0 2.1 0.1 3.5 -
IM U.S. TIPS (MF) Rank 43 35 32 29 22 0.71
Templeton Global Bond R6*-1.8 2.8 1.8 1.9 5.9 0.52 MAINTAIN
Citigroup World Government Bond Index 1.0 7.5 1.7 0.1 2.7 -
IM Global Fixed Income (MF) Rank 100 88 62 30 1 0.98
VantageTrust Retirement Income Advantage R5 3.2 13.1 5.5 7.1 - 1.71
VT Retirement IncomeAdvantage Custom Benchmark 3.6 14.1 6.9 8.6 --
MFS Value Fund R6 5.0 17.9 10.3 15.1 7.9 0.51 MAINTAIN
Russell 1000 Value Index 5.3 13.7 8.7 14.0 7.1 -
IM U.S. Large Cap Value Equity (MF) Rank 73 27 9 10 15 0.99
Performance Overview By Investment
As of December 31, 2017
Total Annualized Return
Explanation of Category rankings: Percentile rankings are on a scale of 1 to 100, with a rank of 1 (1st percentile) being the best and 100 (100th percentile) being the worst. Rankings relate to net offee returns for each fund in its respective Lipper peer group. Due to statistical requirements, investment versus peer group rankings will not populate if peer groups contain less than 10 members.Returns for periods less than one year are not annualized.Source: Lipper Analytical Services or investment manager for non-mutual fund holdings.^More information on custom indexes, which may be used in this report, can be found on the Custom Index Description page in the back of your report.34
Performance Overview By Investment
As of December 31, 2017
Total Annualized Return
QTR 1
Year
3
Years
5
Years
10
Years
Expense
Ratio %Manager Status
Vanguard 500 Index Admiral 6.6 21.8 11.4 15.8 8.5 0.04 MAINTAIN
S&P 500 Index 6.6 21.8 11.4 15.8 8.5 -
IM U.S. Large Cap Core Equity (MF) Rank 38 37 18 15 18 0.96
T. Rowe Price Instl Large Cap Growth 7.3 37.8 16.0 19.6 11.6 0.56 MAINTAIN
Russell 1000 Growth Index 7.9 30.2 13.8 17.3 10.0 -
IM U.S. Large Cap Growth Equity (MF) Rank 23 4 2 2 2 1.06
Victory Sycamore Established Value R6*5.9 16.1 12.4 16.5 10.8 0.59 MAINTAIN
Russell Midcap Value Index 5.5 13.3 9.0 14.7 9.1 -
IM U.S. Mid Cap Value Equity (MF) Rank 29 21 1 1 1 1.09
Vanguard Extended Market Idx Adm 4.8 18.1 9.9 14.6 9.3 0.08 MAINTAIN
S&P Completion Index 4.8 18.1 9.8 14.5 9.2 -
IM U.S. SMID Cap Core Equity (MF) Rank 31 10 38 20 27 1.15
Harbor Mid Cap Growth Retirement*6.0 32.3 10.5 14.3 7.2 0.79 MAINTAIN
Russell Midcap Growth Index 6.8 25.3 10.3 15.3 9.1 -
IM U.S. Mid Cap Growth Equity (MF) Rank 41 6 35 38 64 1.18
Eagle Small Cap Growth R6*6.1 23.4 10.7 14.1 9.6 0.67 MAINTAIN
Russell 2000 Growth Index 4.6 22.2 10.3 15.2 9.2 -
IM U.S. Small Cap Growth Equity (MF) Rank 10 15 36 44 22 1.40
Harbor International Retirement 2.2 23.0 5.9 5.3 2.1 0.71 TERMINATE
MSCI EAFE (Net) Index 4.2 25.0 7.8 7.9 1.9 -
IM International Large Cap Core Equity (MF) Rank 86 77 76 92 37 0.99
Explanation of Category rankings: Percentile rankings are on a scale of 1 to 100, with a rank of 1 (1st percentile) being the best and 100 (100th percentile) being the worst. Rankings relate to net offee returns for each fund in its respective Lipper peer group. Due to statistical requirements, investment versus peer group rankings will not populate if peer groups contain less than 10 members.Returns for periods less than one year are not annualized.Source: Lipper Analytical Services or investment manager for non-mutual fund holdings.^More information on custom indexes, which may be used in this report, can be found on the Custom Index Description page in the back of your report.35
Performance Overview By Investment
As of December 31, 2017
Total Annualized Return
QTR 1
Year
3
Years
5
Years
10
Years
Expense
Ratio %Manager Status
Vanguard Total Intl Stock Index Adm*4.9 27.6 8.5 7.1 1.9 0.11 MAINTAIN
FTSE Global All Cap ex US Spliced Index^5.4 27.4 8.5 7.4 1.9 -
IM International Large Cap Core Equity (MF) Rank 22 22 8 35 43 0.99
Oppenheimer Developing Markets I*5.1 35.3 7.9 5.5 4.5 0.88 MAINTAIN
MSCI Emerging Markets (Net) Index 7.4 37.3 9.1 4.3 1.7 -
IM Emerging Markets Equity (MF) Rank 77 51 60 30 5 1.38
Nuveen Real Estate Secs R6 2.5 5.8 5.5 9.4 8.3 0.87 MAINTAIN
FTSE NAREIT Equity REIT Index 1.5 5.2 5.6 9.5 7.4 -
IM Real Estate Sector (MF) Rank 41 40 33 17 11 1.23
*Historical performance of current share class may differ slightly due to share class exchanges and/or blended performance.
Explanation of Category rankings: Percentile rankings are on a scale of 1 to 100, with a rank of 1 (1st percentile) being the best and 100 (100th percentile) being the worst. Rankings relate to net offee returns for each fund in its respective Lipper peer group. Due to statistical requirements, investment versus peer group rankings will not populate if peer groups contain less than 10 members.Returns for periods less than one year are not annualized.Source: Lipper Analytical Services or investment manager for non-mutual fund holdings.^More information on custom indexes, which may be used in this report, can be found on the Custom Index Description page in the back of your report.36
1-50 Percentile =
51-75 Percentile =
76-100 Percentile =
QTR 1
Year
3
Years
5
Years
10
Years
Expense
Ratio %Manager Status
Vanguard Target Retirement Income Inv 2.0 8.5 4.5 5.0 4.9 0.13 MAINTAIN
Vanguard Target Income Composite Index 2.1 8.7 4.7 5.2 5.0 -
IM Mixed-Asset Target Today (MF) Rank 58 63 41 32 22 0.77
Vanguard Target Retirement 2015 Inv 2.7 11.5 5.6 7.2 5.2 0.14 MAINTAIN
Vanguard Target 2015 Composite Index 2.8 11.6 5.8 7.5 5.3 -
IM Mixed-Asset Target 2015 (MF) Rank 42 44 41 30 10 0.73
Vanguard Target Retirement 2020 Inv 3.4 14.1 6.6 8.5 5.6 0.14 MAINTAIN
Vanguard Target 2020 Composite Index 3.5 14.2 6.8 8.8 5.8 -
IM Mixed-Asset Target 2020 (MF) Rank 17 15 8 6 5 0.81
Vanguard Target Retirement 2025 Inv 3.9 15.9 7.3 9.4 5.8 0.14 MAINTAIN
Vanguard Target 2025 Composite Index 4.0 16.1 7.5 9.6 5.9 -
IM Mixed-Asset Target 2025 (MF) Rank 12 22 16 11 14 0.79
Vanguard Target Retirement 2030 Inv 4.2 17.5 7.8 10.1 5.9 0.15 MAINTAIN
Vanguard Target 2030 Composite Index 4.4 17.7 8.1 10.4 6.1 -
IM Mixed-Asset Target 2030 (MF) Rank 27 33 23 12 14 0.85
Vanguard Target Retirement 2035 Inv 4.6 19.1 8.4 10.9 6.2 0.15 MAINTAIN
Vanguard Target 2035 Composite Index 4.8 19.2 8.6 11.2 6.3 -
IM Mixed-Asset Target 2035 (MF) Rank 33 40 31 16 20 0.81
Vanguard Target Retirement 2040 Inv 5.0 20.7 8.9 11.5 6.5 0.16 MAINTAIN
Vanguard Target 2040 Composite Index 5.2 20.9 9.2 11.8 6.6 -
IM Mixed-Asset Target 2040 (MF) Rank 25 28 24 9 13 0.85
Performance Overview By Investment
As of December 31, 2017
Total Annualized Return
Explanation of Category rankings: Percentile rankings are on a scale of 1 to 100, with a rank of 1 (1st percentile) being the best and 100 (100th percentile) being the worst. Rankings relate to net of
fee returns for each fund in its respective Lipper peer group. Due to statistical requirements, investment versus peer group rankings will not populate if peer groups contain less than 10 members.
Returns for periods less than one year are not annualized.
Source: Lipper Analytical Services or investment manager for non-mutual fund holdings.
37
Performance Overview By Investment
As of December 31, 2017
Total Annualized Return
QTR 1Year 3Years 5Years 10Years Expense Ratio %Manager Status
Vanguard Target Retirement 2045 Inv 5.2 21.4 9.2 11.6 6.6 0.16 MAINTAIN
Vanguard Target 2045 Composite Index 5.4 21.5 9.4 12.0 6.7 -
IM Mixed-Asset Target 2045 (MF) Rank 24 26 27 12 18 0.82
Vanguard Target Retirement 2050 Inv 5.2 21.4 9.2 11.6 6.6 0.16 MAINTAIN
Vanguard Target 2050 Composite Index 5.4 21.5 9.4 12.0 6.7 -
IM Mixed-Asset Target 2050 (MF) Rank 33 34 27 12 15 0.86
Vanguard Target Retirement 2055 Inv 5.2 21.4 9.1 11.6 -0.16 MAINTAIN
Vanguard Target 2055 Composite Index 5.4 21.5 9.4 12.0 --
IM Mixed-Asset Target 2055+ (MF) Rank 35 44 38 18 -0.82
Vanguard Target Retirement 2060 Inv 5.2 21.4 9.1 11.6 -0.16 MAINTAIN
Vanguard Target 2060 Composite Index 5.4 21.5 9.4 12.0 --
IM Mixed-Asset Target 2055+ (MF) Rank 33 43 37 19 -0.82
Explanation of Category rankings: Percentile rankings are on a scale of 1 to 100, with a rank of 1 (1st percentile) being the best and 100 (100th percentile) being the worst. Rankings relate to net of
fee returns for each fund in its respective Lipper peer group. Due to statistical requirements, investment versus peer group rankings will not populate if peer groups contain less than 10 members.
Returns for periods less than one year are not annualized.
Source: Lipper Analytical Services or investment manager for non-mutual fund holdings.
38
Metropolitan West Total Return Bond Plan*Vanguard Total Bond Market Index Adm Vanguard Inflation-Protected Secs Adm
Templeton Global Bond R6*MFS Value Fund R6 Vanguard 500 Index Admiral
T. Rowe Price Instl Large Cap Growth Victory Sycamore Established Value R6*Vanguard Extended Market Idx Adm
Harbor Mid Cap Growth Retirement*Eagle Small Cap Growth R6*Harbor International Retirement
Vanguard Total Intl Stock Index Adm*Oppenheimer Developing Markets I*Nuveen Real Estate Secs R6
S&P 500 Index 90 Day U.S. Treasury Bill
-8.0
-4.0
0.0
4.0
8.0
12.0
16.0
20.0
24.0
Return (%)-6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0
Risk (Standard Deviation %)
Performance vs Risk
3 Years Ending December 31, 2017
The plan's investment menu should provide for investment options with materially different risk/reward characteristics that would allow participants to construct a broadly diversified portfolio.
The chart below illustrates how the funds in the plan align on the "risk-return spectrum" when compared to the S&P 500 Index.
Calculation based on monthly periodicity.
39
Style Map(12/01/14 - 12/31/17)
MFS Value Fund R6 Vanguard 500 Index Admiral T. Rowe Price Instl Large Cap Growth
Victory Sycamore Established Value R6*Vanguard Extended Market Idx Adm Harbor Mid Cap Growth Retirement*
Eagle Small Cap Growth R6*CapitalizationManager Style
Large Cap Value
Small Cap Value Small Cap Growth
Large Cap Growth
Performance Statistics
Average Style Exposure
The chart below illustrates the Lipper Style Box exposure for the plan's funds that invest primarily in U.S. stocks. The purpose of the chart is to demonstrate the presence of coverage in all style
boxes, from small cap to large cap and from growth to value.
40
Manager Manager Status Comments
VantageTrust PLUS Fund R10 Maintain 4Q 2017 – Commentary not available at time of report production.
VantageTrust Retirement Income
Advantage R5
No Status FIA does not currently monitor this fund.
Metropolitan West Total Return Bond Plan Maintain 4Q 2017 – The MetWest Total Return Bond fund produced a positive absolute return during the fourth
quarter, performing in-line with the Bloomberg Barclays Aggregate Bond Index. The yield curve flattened
during the quarter following the Federal Reserve’s decision to raise short term rates, while strong demand and
subdued inflation kept pressure on the long end of the curve. As a result, the portfolio’s interest rate
positioning was beneficial. Spread sectors continued to lead the way, most notably by corporate credit. The
strategy’s underweight exposure to investment grade credit detracted from relative results. However an
overweight to securitized mostly offset this. Issue selection was mixed with favorable returns coming from the
non-agency mortgage space, however lower exposures to more volatile sectors such as energy and metals
were a headwind. The team at MetWest remains concerned about the stage of the credit cycle and continues
to position the fund with a conservative bent. This defensive positioning, notably an underweight to corporate
credit and a preference for higher quality securities, has been a large factor compared to other Core Plus
managers. The strategy has less exposure to corporate credit, both investment grade and high yield, as
compared to peers, two sectors that have continued to perform well despite valuations moving higher. This
aligns with MetWest’s relative value approach as they tend to underweight these sectors when spreads are
tight (“expensive”) and overweight when spreads are wide (“cheap”). The strategy’s long-term results remain
attractive and they continue to produce an attractive risk/return profile compared to the index and peers.
Vanguard Total Bond Market Index Adm Maintain 4Q 2017 - In accordance with its objective, the Vanguard Total Bond Market Index sufficiently tracked its
benchmark during the quarter.
Vanguard Inflation-Protected Secs Adm Maintain 4Q 2017 – The Vanguard Inflation-Protected Securities Fund produced positive absolute results but modestly
underperformed the benchmark. For the quarter, TIPS outperformed nominal Treasury securities as investor’s
increased inflation expectations following several months of improving economic data and robust global
growth. The U.S. yield curve continued to flatten, as the long end held steady, while the short end was lifted by
the Federal Reserve’s December rate hike, the third of 2017. Negative security selection among 5- to 10-year
TIPS was a headwind for the portfolio.
Manager Commentary
As of December 31, 2017
41
Manager Commentary
As of December 31, 2017
Manager Manager Status Comments
Templeton Global Bond R6 Maintain 4Q 2017 – The Templeton Global Bond Fund declined during the fourth quarter and underperformed its
benchmark, the Citi WGBI. In the U.S., the yield curve rose slightly on the short end but overall flattened in the
period as the Fed raised the federal funds rate for the third time during the year and began unwinding its
balance sheet. Meanwhile, in Europe yields generally declined and the euro strengthened against the dollar,
rates remained relatively unchanged in Japan from the BOJ’s target, and rates across emerging markets were
generally idiosyncratic. The Fund’s negative performance in this environment was primarily due to currency
positions, particularly positions in the Mexican peso and Brazilian real, and the Fund’s net-negative position in
the euro. On the positive side, a position in the Indian rupee contributed to returns. The portfolio’s interest-
rate strategies also had a negative impact on performance due to its negative duration exposure to U.S.
Treasuries, duration exposures in Latin America, and its underweight duration to Europe. The Fund continues
to maintain a defensive approach regarding developed market interest rates, while holding duration exposures
in select emerging markets.
MFS Value Fund R6 Maintain 4Q 2017 - The MFS Value Fund trailed the Russell 1000 Value Index in the fourth quarter. The growth style of
investing outperformed the value style of investing during the fourth quarter, which continued a yearlong
trend. Weaker relative returns from the utilities and real estate sectors held back value. The Fund's
underperformance this quarter was primarily due to stock selection in the financials and consumer
discretionary sectors. Within consumer discretionary, an underweight position in retailing stocks detracted
from performance as the industry rebounded in the quarter and outperformed the broad market. Within
financials, owning shares of insurance brokerage firm Aon Plc detracted from performance as the company
reported weaker-than-expected third quarter organic revenue growth as its commercial segment fell short of
projections. On the positive side, stock selection in healthcare boosted relative results. Underweight
allocations to the underperforming utility and real estate sectors also helped. Despite the underperformance
this quarter, the Fund finished the year ahead of the benchmark and ranked in the top quartile when
compared to a universe of its peers.
Vanguard 500 Index Admiral Maintain 4Q 2017 - In accordance with its investment objective, the Vanguard 500 Index Fund performed in line with
the S&P 500 Index.
42
Manager Commentary
As of December 31, 2017
Manager Manager Status Comments
T. Rowe Price Instl Large Cap Growth Maintain 4Q 2017 – The T. Rowe Price Institutional Large Cap Growth Strategy advanced during the fourth quarter but
underperformed the Russell 1000 Growth Index. U.S. equities concluded the year with another strong quarter
of returns, driven by positive sentiment around tax reform, robust earnings growth, and positive economic
data. While large cap growth stocks further stretched their outperformance over smaller market cap and
value-oriented names, the markets did witness a sector reversal, as perceived beneficiaries of the corporate
tax overhaul assumed leadership. Those segments with higher effective tax rates in place, namely industrials,
consumer discretionary and consumer staples, were among top performers, while those with lower tax rates,
including health care and real estate, generally lagged. Against this backdrop, the Fund was hindered from its
underweight to consumer staples, as well as from poor selection in the group. Additionally, stock picks in
financials also weighed on relative performance. Consumer staples holding Philip Morris International was
among the greatest detractors, falling after reporting earnings that came in below expectations. On the
positive side, favorable selection among health care names added value during the quarter and offset the
negative impact from an overweight to the sector. Top contributors from the space included Anthem and
Becton, Dickinson & Company.
Victory Sycamore Established Value R6 Maintain 4Q 2017 - The Victory Sycamore Established Value Fund outperformed the Russell Mid Cap Value Index in the
fourth quarter. Sector weighting was the driver of relative performance, while stock selection had a negative
impact during the quarter. An underweight in the real estate and utilities sectors contributed to relative
performance for the quarter. In addition, stock selection in financials, healthcare and real estate also added
value. Conversely, stock selection in consumer staples, materials and technology detracted from returns.
However, an overweight position in materials, the top performing sector in the benchmark for the period,
partially offset the unfavorable impact from selection.
Vanguard Extended Market Idx Adm Maintain 4Q 2017 - In accordance with its objective, the fund has performed in line with the S&P Completion Index.
Harbor Mid Cap Growth Retirement Maintain 4Q 2017 – The Harbor Mid Cap Growth Fund rose during the fourth quarter but trailed the Russell Mid Cap
Growth Index. Portfolio results were hindered from both adverse sector weightings and security selection.
From an allocation standpoint, relative results were most negatively impacted by an overweight to health care,
which was the weakest performing segment of the Index, and from an underweight to industrials, which was
the top performing sector this period. A 4% cash position also hurt relative performance given the rising
equity market. Concerning security selection, the weakness was primarily attributable to unfavorable results
within technology and industrials, and, to a lesser extent, financials and materials. The greatest three
detractors resided within the technology sector this quarter, including positions in Advanced Micro Devices,
Guidewire Software and Workday. On the positive side, relative performance was buoyed by advantageous
stock picks within health care and consumer discretionary.
43
Manager Commentary
As of December 31, 2017
Manager Manager Status Comments
Eagle Small Cap Growth R6 Maintain 4Q 2017 – The Eagle Small Cap Growth Fund produced positive absolute returns and outpaced the Russell
2000 Growth Index during the fourth quarter. Despite lagging their large cap growth counterparts on both a
quarterly and annual basis, small cap growth stocks finished the year producing robust gains. Additionally,
while the passing of tax reform should provide a tailwind for U.S. stocks across market caps, small caps tend to
benefit most given their domestic orientation. Against this backdrop, outperformance was primarily the result
of strong security selection, with sector allocations having a minimal impact on relative performance. Stock
picks in information technology were particularly noteworthy, led by stakes in Coherent, Inc. and Cavium.
Elsewhere, health care and consumer discretionary were also areas of strength. Health care outperformance
was supported by positive results within the biotechnology space, with Sage Therapeutics among top
contributors. On the negative side, adverse selection within real estate and financials somewhat moderated
the relative gains. Regarding allocation, benefits from being overweight consumer discretionary and
underweight health care were offset from an underweight to consumer staples and overweight to financials.
Harbor International Retirement Terminate 4Q 2017 4Q 2017 – The Harbor International Fund rose during the fourth quarter but underperformed its benchmark,
the MSCI EAFE Index. The Fund’s lagging results were driven by poor stock selection, most notably in the
materials and energy sectors, where positions in Bayer and Schlumberger were among the Fund’s largest
detractors. Stock selection within the financials and information technology sectors also negatively impacted
returns. On the positive side, stock selection in the health care sector added value in the period but for the
year health care was the Fund’s largest detractor due primarily to the decline in Teva Pharmaceuticals. In
terms of sector allocation, the lack of exposure to the weak utilities sector boosted relative performance, but
this was offset by the portfolio’s overweight allocation to health care. The Fund was placed on Terminate this
quarter due to a loss of conviction in the strategy driven by a lack of confidence in the investment team and
the length of sustained underperformance.
Vanguard Total Intl Stock Index Adm Maintain 4Q 2017 - In accordance with its investment objective, the Vanguard Total International Stock Index performed
in line with its benchmark, the FTSE Global All Cap ex-US Index, with slight tracking error due to the impact of
fair value pricing.
44
Manager Commentary
As of December 31, 2017
Manager Manager Status Comments
Oppenheimer Developing Markets I Maintain 4Q 2017 - The Oppenheimer Developing Markets Fund rose in the fourth quarter but underperformed its
benchmark, the MSCI Emerging Markets Index. Emerging market equities experienced yet another strong
quarter, capping off the year with a 37.3% gain for the index. China and the technology sector led the rally in
an environment dominated by growth. Valuations across the region have increased but continue to be
supported by earnings growth and strong fundamentals. Stock selection drove relative underperformance
over the period led by the consumer discretionary sector. A newly initiated position in Steinhoff was a
significant detractor as the stock plummeted amidst allegations of accounting irregularities. An overweight to
Ctrip and not owning Naspers were other consumer discretionary detractors. Relative performance was also
hurt by an overweight to Magnit, a consumer staples holding and by the fund’s cash position which averaged
4% over the period. On the positive side, stock selection within technology produced relative gains with
overweights to NAVER and Tencent among the contributors. Over the year the manager has harvested gains
in top performers such as Tencent, Alibaba and New Oriental Education and has made new investments in the
areas of healthcare, Korean cosmetics, South Africa and natural resources.
Nuveen Real Estate Secs R6 Maintain 4Q 2017 – The Nuveen Real Estate Fund outpaced its benchmark during the quarter. Within the real estate
segment in general, investment values for prime real estate assets have remained relatively stable due to very
strong capital flows to the sector driven by investors’ widespread acceptance of low expected returns from
real estate in today’s low return environment, coupled with continued credit availability and low borrowing
rates. From the portfolio perspective, the leading contributor during the quarter came mainly from stock
selection and positive allocation effect in the health care REIT sector. Also, the multi-family sector was the
second leading contributor. Conversely, the lodging sector was the Fund's primary detractor driven mostly by
its underweight position relative to benchmark.
Vanguard Target Retirement Funds Maintain 4Q 2017 – The Vanguard Target Date portfolios produced positive absolute returns during the quarter, with
performance in the top half of each fund’s respective peer group, while outperforming in vintages near
retirement. All five underlying funds produced positive gains against a favorable economic backdrop.
Vanguard’s higher than average equity exposure was beneficial during the quarter that saw strong global and
domestic equity returns backed by robust corporate earnings and healthy economic growth. The Total
International Stock Index fund, in particular, provided strong relative and absolute performance. Exposure to
short-term TIPs was a headwind relative to spread sectors, which outperformed treasuries during a quarter
where credit spreads tightened amid strong demand.
45
Data as of December 29, 2017 unless otherwise noted.
REPORT GLOSSARY
Alpha - Alpha measures the difference between an investment's actual performance, and its expected performance as indicated by its market sensitivity (Beta). A positive Alpha indicates
the risk-adjusted performance is above that index.
Batting Average - This measures the frequency with which a manager performs better than a selected benchmark. It is computed by dividing the number of positive excess returns by the
total number of excess returns during the period.
Beta - Beta is defined as a Manager's sensitivity to market movements and is used to evaluate market related, or systematic risk. Beta is a measure of the linear relationship, over time, of
the Manager's returns and those of the Benchmark. Beta is computed by regressing the Manager's excess returns over the risk free rate (cash proxy) against the excess returns of the
Benchmark over the risk free rate. An investment that is as equally volatile as the market will have a Beta of 1.0; an investment half as volatile as the market will have a Beta of 0.5; and so
on. Thus, Betas higher than 1.0 indicate that the fund is more volatile than the market.
Down Market (Mkt) Capture Ratio - Down Market Capture Ratio is a measure of an investment's performance in down markets relative to the market itself. A down market is one in
which the market's return is less than zero. The lower the investment's Down Market Capture Ratio, the better the investment protected capital during a market decline. A negative Down
Market Capture Ratio indicates that an investment's returns rose while the market declined.
Downside Risk (Semi Standard Deviation, Semi StdDev, or Downside Deviation) - Downside Risk only identifies volatility on the down side. Downside Risk measures the variability of
returns below zero, whereas Standard Deviation attributes volatility in either direction to risk. The Downside Risk method calculates the deviations below zero for each observed return.
Each time a return falls below zero, the sum is divided by the number of observations and the square root is taken. This result is then shown on an annualized basis.
Excess - Denotes that a statistic is being measured relative to the Market Index selected.
R-Squared (R2) - This statistic indicates the degree to which the observed values of one variable, such as the returns of a managed portfolio, can be explained by, or are associated with the
values of another variable, such as a Market Index. The R2 values generally range from 0.0 to 1.0. An investment with an R2 of 1.0 is perfectly correlated with the market. An R2 of 0.95, for
example, implies that 95% of the fluctuations in a portfolio are explained by fluctuations in the market.
Sharpe Ratio - The Sharpe Ratio indicates the excess return per unit of total risk as measured by Standard Deviation. It is a ratio of excess returns over the risk free rate to the Standard
Deviation. The Sharpe Ratio is a measure of the premium earned for the risk incurred by the portfolio.
Standard Deviation (StdDev) - A measure of the extent to which observations in a series vary from the arithmetic mean of the series. The Standard Deviation of a series of asset returns is
a measure of volatility, or risk, of the asset. The more volatile the returns, the higher the standard deviation will be.
Style Map - Plots the historical exposures of a fund's style across appropriate dimensions, such as growth vs. value for equity funds. By viewing this chart, an investor can determine a
manager's style consistency over time. Returns based style analysis is used.
Tracking Error - Tracking Error is a measure of how closely an investment's returns track the returns of the selected Market Index. It is the annualized Standard Deviation of the
differences between the investment's and the associated index's returns. If an investment tracks its associated index closely, then Tracking Error will be low. If an investment tracks its
associated index perfectly, then Tracking Error will be zero.
Up Market (Mkt) Capture Ratio - Up Market Capture Ratio is a measure of a product's performance in up markets relative to the market itself. An up market is one in which the market's
return is greater than or equal to zero. The higher the investment's Up Market Capture Ratio, the better the investment capitalized on a rising market.
46
Glossary
Alpha - A measure of return that cannot be attributed to the market. Thus, it can be thought of as how the portfolio would have preformed if the market had experienced no gain or loss.
Alpha is value added over the benchmark; the higher the alpha, the better.
Batting Average - Ratio defining excess performance of a portfolio in comparison to its benchmark, measured, typically, over a series of calendar quarters.
Beta - Indicates the level of risk relative to the market. A beta of more than one suggests more volatility than the market, while a beta of less than one indicates less volatility than the
market. Beta is also referred to as systematic risk.
Down Market Capture Ratio - A measure of a portfolio's performance in down markets. The lower a portfolio's down market capture ratio, the better the manager protected capital
during a market decline. Ex: a value of 90 suggests that a manager's losses were only 90% of the market loss when the market was down. A negative down market capture ratio indicates
that a manager's returns rose while the market declined.
Information Ratio - Measures a portfolio's excess return per unit of risk. The ratio is used to measure the value added from the information a manager possesses, adjusted for the risk
taken in making active investment decisions. The greater the information ratio, the better.
Performance vs Peers - Trailing return and calendar year returns reveal how the portfolio has performed versus a peer group of portfolios of similar style.
R-Squared - This number reflects the correlation between a portfolio's movements and the movements of its comparative benchmark. An R-squared of 100 indicates that there is perfect
correlation between the movements of a portfolio and its benchmark, while an R-squared of 0 indicates that there is no correlation between the portfolio's movements and the
benchmark's movements.
Return vs Standard Deviation Scatterchart - This graph shows a risk/reward relationship of the portfolio and its relative benchmark. Risk, or volatility as measured by standard
deviation, is plotted along the horizontal axis. Reward, as measured by total return, is plotted along the horizontal axis. A line drawn from T-bills and through the benchmark separates
efficient managers from inefficient managers. Efficient managers will plot above this line and are considered to have risk/reward tradeoffs that are superior to the benchmark.
Sharpe Ratio - Reward per unit of risk, calculated using standard deviation and excess return. The greater the Sharpe Ratio, the better.
Standard Deviation - A gauge of risk that measures the spread of the difference of returns from their average. The more a portfolio's returns vary from its average, the higher the
standard deviation.
Style Map - Using returns-based style analysis, the style map is an efficient tool to gauge the adherence of a portfolio to its style mandate. The trend of the style plots allows the viewer
to identify style drift, or lack thereof. The smaller sized plots represent earlier time periods, while the larger plots represent the more recent observations.
Tracking Error - The standard deviation of the portfolio's residual (i.e. excess) returns. The lower the tracking error,the closer the portfolio returns have been to its risk index.
Aggressively managed portfolios would be expected to have higher tracking errors than portfolios with a more conservative investment style.
Up Market Capture Ratio - A measure of a portfolio's performance in up markets. The higher a portfolio's up market capture ratio, the better the manager capitalized on a rising market.
Ex: a value of 110 suggests the manager captured 110% of the market when the market was up. A negative up market ratio indicates that a manager's returns fell while the market rose.
Custom Index Descriptions CRSP U.S. Large Cap Growth Spliced Index – Following May 1, 2013: CRSP U.S. Large Cap Growth TR. Periods prior to May 1, 2013: MSCI U.S. Prime Market Growth. CRSP U.S. Large Cap Spliced Index – Following February 1, 2013: CRSP U.S. Large Cap TR. Periods prior to February 1, 2013: MSCI U.S. Prime Market 750. CRSP U.S. Large Cap Value Spliced Index – Following May 1, 2013: CRSP U.S. Large Cap Value TR. Periods prior to May 1, 2013: MSCI U.S. Prime Market Value. CRSP U.S. Mid Cap Growth Spliced Index – Following May 1, 2013: CRSP U.S. Mid Cap Growth TR. Periods prior to May 1, 2013: MSCI U.S. Mid Cap Growth. CRSP U.S. Mid Cap Spliced Index – Following February 1, 2013: CRSP U.S. Mid Cap TR. Periods prior to February 1, 2013: MSCI U.S. Mid Cap 450. CRSP U.S. Small Cap Growth Spliced Index – Following May 1, 2013: CRSP U.S. Small Cap Growth TR. Periods prior to May 1, 2013: MSCI U.S. Small Cap Growth. CRSP U.S. Small Cap Spliced Index – Following February 1, 2013: CRSP U.S. Small Cap TR. Periods prior to February 1, 2013: MSCI U.S. Small Cap 1750. CRSP U.S. Small Cap Value Spliced Index – Following May 1, 2013: CRSP U.S. Small Cap Value TR. Periods prior to May 1, 2013: MSCI U.S. Small Cap Value. CRSP U.S. Total Market Spliced Index – Following June 1, 2013: CRSP U.S. Total Market TR. Periods prior to June 1, 2013: MSCI U.S. Broad Market. FTSE Developed Asia Pacific Spliced Index – Following April 1, 2013: FTSE Developed Asia Pacific. Periods prior to April 1, 2013: MSCI Pacific. FTSE Developed Europe Spliced Index – Following April 1, 2013: FTSE Developed Europe. Periods prior to April 1, 2013: MSCI Europe. FTSE Developed ex US Spliced Index – Following December 1, 2015: FTSE Developed All Cap Ex US Transition Index. Periods between May 1, 2013 and December 1, 2015: FTSE Developed ex NA Index. Periods before May 1, 2013: MSCI EAFE (net). FTSE Emerging Markets All Cap China A Inclusion Spliced Index – Following November 1, 2015: FTSE Emerging Markets All Cap China A Inclusion Transition Index. Periods between July 1, 2013 and November 1, 2015: FTSE Emerging Markets (net). Periods between February 1, 2013 and July 1, 2013: FTSE Emerging Markets Transition. Periods Prior to February 1, 2013: MSCI Emerging Markets. FTSE Global All Cap ex U.S. Spliced Index – Following June 1, 2013: FTSE Global ex USA All Cap. Periods between January 1, 2011 and June 1, 2013: MSCI ACWI ex USA IMI ND. Periods prior to January 1, 2011: MSCI EAFE + EM ND USD. JP Morgan Global Diversified Hybrid Benchmark – 50% JPM EMBI Global Diversified, 25% JPM ELMI+, 25% JPM BGI‐EM Global Diversified MSCI AC World ex USA (net) Spliced Index – Following January 1, 2001: MSCI AC World ex USA (net). Prior to January 1, 2001: MSCI AC World ex USA. MSCI AC World ex USA Growth (net) Spliced Index – Following January 1, 2001: MSCI AC World ex USA Growth (net). Periods between January 1, 1997 and January 1, 2001: MSCI AC World ex USA Growth. Periods prior to January 1, 1997: MSCI AC World ex USA. MSCI AC World ex USA Value (net) Spliced Index – Following January 1, 2001: MSCI AC World ex USA Value (net). Periods between January 1, 1997 and January 1, 2001: MSCI AC World ex USA Value. Periods prior to January 1, 1997: MSCI AC World ex USA. 48
Prospectus Links
Fund Family Website
Eagle Asset Management www.eagleasset.com
Franklin Templeton www.franklintempleton.com
Harbor www.harborfunds.com
Metropolitan West www.mwamllc.com
MFS www.mfs.com
Nuveen www.nuveen.com
Oppenheimer www.oppenheimerfunds.com
T. Rowe Price www.troweprice.com
Vanguard www.vanguard.com
Vantagepoint www.icmarc.org
Victory www.vcm.com
49
SRI Balanced Search
50
Data as of December 29, 2017 unless otherwise noted.
Investment Manager Review
Balanced
Period Ending December 29, 2017
Strategies Included:
Walden Asset Management
The share classes and expense ratios shown on the Firm & Strategy pages in this report reflect the lowest expense share class of the fund. The actual share classes suitable and available
for your plan may vary. Alternative share classes may be shown in the performance and statistics pages to provide the longest available track record.
The information contained in this report has been taken from trade and statistical services and other sources deemed reliable, although its accuracy cannot be guaranteed and it should
not be relied upon as such. Any opinion expressed herein reflects our judgment at this date and are subject to change. The illustration represents past performance and should not be
considered indicative of future results. Mutual funds are sold by prospectus only. Historical performance results for investment indices and/or categories have been provided for general
comparison purposes only, it should not be assumed that your account holdings do or will correspond directly to any comparative indices.
51
Data as of December 29, 2017 unless otherwise noted.
FIRM & STRATEGY SUMMARY
FIRM INFORMATION
Firm Name: Walden Asset Management Ownership: A Division of Boston Trust & Investment Management Company
(employee owned)
Location: Boston, MA Firm Assets: $7.9 billion
STRATEGY & VEHICLE INFORMATION
Strategy Name: Walden Balanced Proposed Vehicle: Mutual Fund
Strategy Inception: 1947 Vehicle Name: Walden Asset Management
Strategy Assets: $4. billion Vehicle Assets: $618 million
Vehicle Inception: 1999
Vehicle Fees: 1.00%
Investment Team:
This fund has been managed by William Apfel since 2012. Mr. Apfel serves as Chief Investment Officer at Boston Trust & Investment Management's parent company,
where he was worked since 1989.
Investment Philosophy:
Boston Trust believes that securities of higher quality companies are systematically mispriced because most investors fail to discount sufficiently for risk. The
conception of quality is measured on both an absolute and relative basis using quantitative, qualitative, and dynamic methods. Mission related objectives do not
compromise investment performance because high quality companies tend to have strong ESG records.
Process:
The Balanced fund process incorporates the processes followed by the fixed income management team as well as the Social Equity team. The equity component of this
portfolio is managed parri-passu with the Social Equity product. There is a minimum allocation of 20% to fixed income.
The fixed income process encompasses: duration management, yield curve strategies, sector rotation, and individual security selection. Duration management is simply
an evaluation of the level of rates relative to market expectations and historic norms. The duration target decision is made in consideration of the benchmark. The
duration decision is implemented through yield curve positioning. They will use a variety of strategies to enhance return and reduce risk through yield curve trades.
Sector decisions are made after an evaluation of relative value. The team also focuses only on investment grade securities in the corporate sector. This bias is due to
the fact that they do not do credit research.
Portfolio Construction:
Individual sector exposure is limited to 2x the benchmark weight. The portfolio also maintains a bias to agency securities over treasuries.
Risk Controls:
Duration management and yield curve positioning are the main risk management tools. In addition, the portfolio is diversified by sector and security to further
minimize risk.
For the prospectus please go to www.waldenassetmgmt.com 52
Data as of December 29, 2017 unless otherwise noted.
ANNUALIZED PERFORMANCE & PEER COMPARISON
YTD 1 Year 3 Years 5 Years 7 Years 10 Years
Walden Asset Management 14.88 14.88 7.75 10.33 8.79 6.14
Universe Ranking %21 21 1 2 11 12
60% S&P 500 40% BC Agg 14.26 14.26 7.76 10.25 9.64 7.09
Universe Ranking %29 29 1 2 2 2
0
2
4
6
8
10
12
14
16
18
Total Annualized Return, %YTD 1-Year 3-Year 5-Year 7-Year 10-Year
5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile
Walden Asset Management 60% S&P 500 40% BC Agg
Universe ranking is based on the Lipper Mixed-Asset Target Allocation Moderate Universe. Returns greater than one year are annualized.
Note: Alternative share classes may be shown to provide the longest track record. Please refer to the manager pages for share class information.
53
Data as of December 29, 2017 unless otherwise noted.
CALENDAR YEAR PERFORMANCE
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Walden Asset Management -22.11 14.88 12.40 1.24 8.99 20.79 8.20 -0.17 9.08 14.88
Universe Ranking %21 92 31 31 91 2 14 14 19 21
60% S&P 500 40% BC Agg -21.63 18.46 12.19 4.98 11.37 17.73 10.56 1.20 8.21 14.26
Universe Ranking %20 82 37 7 56 18 3 1 26 29
Universe ranking is based on the Lipper Mixed-Asset Target Allocation Moderate Universe.
-40
-30
-20
-10
0
10
20
30
40
Total Annualized Return, %Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile
Walden Asset Management 60% S&P 500 40% BC Agg
54
Data as of December 29, 2017 unless otherwise noted.
THREE-YEAR ROLLING EXCESS RETURNS
-10
-8
-6
-4
-2
0
2
4
Excess Annualized Return, %Mar-08Jun-08Sep-08Dec-08Mar-09Jun-09Sep-09Dec-09Mar-10Jun-10Sep-10Dec-10Mar-11Jun-11Sep-11Dec-11Mar-12Jun-12Sep-12Dec-12Mar-13Jun-13Sep-13Dec-13Mar-14Jun-14Sep-14Dec-14Mar-15Jun-15Sep-15Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-175th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile
Walden Asset Management 60% S&P 500 40% BC Agg
55
Data as of December 29, 2017 unless otherwise noted.
STYLE ANALYSIS
Style Drift - Rolling 12 Months
5 Years
Small-LargeValue-Growth
Large Value Large Growth
Mid Value Mid Growth
Small Value Small Growth
Walden Asset Management 60% S&P 500 40% BC Agg
Average Style
5 Years
Small-LargeValue-Growth
Large Value Large Growth
Mid Value Mid Growth
Small Value Small Growth
56
Data as of December 29, 2017 unless otherwise noted.
RETURN VS. RISK
Ten Year
0
5
10
Total Annualized Return, %0 5 10
Total Annualized StdDev, %
Seven Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
Total Annualized Return, %0 5 10
Total Annualized StdDev, %
Three Year
0
5
10
Total Annualized Return, %0 5 10
Total Annualized StdDev, %
Walden Asset Management
60% S&P 500 40% BC Agg
Five Year
0
5
10
15
Total Annualized Return, %0 5 10
Total Annualized StdDev, %
3 Years 5 Years 7 Years 10 Years
Return Std Dev Return Std Dev Return Std Dev Return Std Dev
Walden Asset Management 7.75 7.01 10.33 6.83 8.79 7.64 6.14 9.55
60% S&P 500 40% BC Agg 7.76 5.90 10.25 5.73 9.64 6.28 7.09 9.13
Data greater than one year is annualized.
57
Data as of December 29, 2017 unless otherwise noted.
MPT STATISTICS
5 Year
Alpha, %Beta R-Squared, %Sharpe Ratio Tracking Error, %Batting Average
Walden Asset Management -1.32 1.15 93.14 1.44 1.98 0.57
60% S&P 500 40% BC Agg 0.00 1.00 100.00 1.69 0.00 0.00
36 Month Rolling Alpha
-8
-6
-4
-2
0
2
4
Alpha, %Mar-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
36 Month Rolling Beta
0.0
0.5
1.0
1.5
2.0
BetaMar-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile
Beta
10 Year
Alpha, %Beta R-Squared, %Sharpe Ratio Tracking Error, %Batting Average
Walden Asset Management -0.92 1.01 93.47 0.63 2.46 0.50
60% S&P 500 40% BC Agg 0.00 1.00 100.00 0.75 0.00 0.00
PERFORMANCE STATISTICS
58
Data as of December 29, 2017 unless otherwise noted.
MARKET CAPTURE STATISTICS
Up/Down Market Capture Ratio
10 Years
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
Up Mkt Capture Ratio, %0 10 20 30 40 50 60 70 80 90 100110120130140
Down Mkt Capture Ratio, %
Walden Asset Management
60% S&P 500 40% BC Agg
Downside Risk
0
1
2
3
4
5
6
7
8
9
10
Total Annualized Semi Stdev, %5 Years 10 Years
Up/Down Market Capture Ratio
5 Years
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
Up Mkt Capture Ratio, %0 10 20 30 40 50 60 70 80 90 100110120130140
Down Mkt Capture Ratio, %
5 Years 10 Years
Up Mkt Capture
Ratio, %
Down Mkt Capture
Ratio, %
Annualized Semi
Stdev to date,%
Up Mkt Capture
Ratio, %
Down Mkt Capture
Ratio, %
Annualized Semi
Stdev to date,%
Walden Asset Management 109.86 128.44 3.54 99.82 109.30 6.54
59
International Large Cap Blend Search
60
Data as of December 29, 2017 unless otherwise noted.
Investment Manager Review
International Large Cap Blend
Period Ending December 29, 2017
Strategies Included:
American Funds EuroPac Growth R5
Hartford International Oppts Y
The share classes and expense ratios shown on the Firm & Strategy pages in this report reflect the lowest expense share class of the fund. The actual share classes suitable and available
for your plan may vary. Alternative share classes may be shown in the performance and statistics pages to provide the longest available track record.
The information contained in this report has been taken from trade and statistical services and other sources deemed reliable, although its accuracy cannot be guaranteed and it should
not be relied upon as such. Any opinion expressed herein reflects our judgment at this date and are subject to change. The illustration represents past performance and should not be
considered indicative of future results. Mutual funds are sold by prospectus only. Historical performance results for investment indices and/or categories have been provided for general
comparison purposes only, it should not be assumed that your account holdings do or will correspond directly to any comparative indices.
61
Data as of December 29, 2017 unless otherwise noted.
FIRM & STRATEGY SUMMARY
FIRM INFORMATION
Firm Name: Capital Group Ownership: Employee Owned
Location: Los Angeles, CA Firm Assets: $1.7 trillion
STRATEGY & VEHICLE INFORMATION
Strategy Name: EuroPacific Growth Proposed Vehicle: Mutual Fund
Strategy Inception: 1984 Vehicle Name: American Funds EuroPacific Growth Fund
Strategy Assets: $161.9 billion Vehicle Assets: $161.9 billion
Vehicle Inception: 1984
Vehicle Fees: 0.50% (R6 - RERGX)
Note: Different share class used in this report for performance due to a longer
track record
Investment Team:
The Fund is managed using a multiple portfolio manager approach. There are 9 portfolio managers building separate portfolios for this Fund, and they are supported by
the firm's equity analysts located around the globe. In addition, there is a sleeve which accounts for 20% of the Fund that is managed by these research analysts.
Investment Philosophy:
The Fund seeks to provide long-term growth of capital through the use of intensive fundamental research of securities of issuers in Europe and the Pacific Basin. The
assets of the Fund are divided among multiple portfolio managers who make independent investment decisions as they manage only their portions of the Fund.
Process:
The Fund is constructed from the bottom-up based on an intensive fundamental research effort. Investment analysts focus their efforts on trying to identify the
difference between the underlying value of a company and the market price of its securities. They utilize a number of fundamental analysis techniques, including
meeting with management teams, customers, suppliers, and competitors of potential investments. As a firm, they monitor over 5,000 companies via this type of direct
company contact. Analysts share information with the portfolio managers who invest their sleeve of the Fund based on their independent judgment and views. Each
portfolio manager runs a relatively concentrated portfolio of their highest conviction ideas which creates a system that builds a portfolio of the team's best ideas with
an added layer of diversification that is designed to lower volatility while striving for consistently superior long-term returns.
Portfolio Construction:
Each portfolio manager pursues the Fund's investment objective utilizing his or her individual investment style and approach. Security weightings are determined by
each portfolio manager for the portion of the Fund's assets that he or she manages with the total portfolio weighting an aggregate of all of the Fund's portfolio
managers' and analysts' investment decisions. While the Fund's prospectus has broad guidelines, the Fund's maximum weighting will be 5% in any single company and
25% in any single industry. Typically, investments in emerging markets are left to the portfolio manager's discretion and will be evaluated internally as the weighting
increases.
Risk Controls:
The multiple portfolio manager system creates inherent risk controls as each sleeve of the portfolio is run by a manager adding their own expertise, investment style,
and risk management capabilities while providing layers of diversification which in turn help control the portfolio's overall risk. In addition, risk is controlled
throughout the bottom-up stock selection process. Portfolio managers and analysts are supported by quantitative analytics that aid in their evaluation of risk for their
particular investments and their portfolio. The Fund also has broad portfolio guidelines and objectives that the portfolio managers are required to take into account in
their investment decisions.
For the prospectus please go to www.americanfunds.com
62
Data as of December 29, 2017 unless otherwise noted.
FIRM & STRATEGY SUMMARY
FIRM INFORMATION
Firm Name: Wellington Management Company Ownership: Employee Owned
Location: Boston, MA Firm Assets: $1.1 trillion
STRATEGY & VEHICLE INFORMATION
Strategy Name: Wellington International Opportunities Proposed Vehicle: Mutual Fund
Strategy Inception: 1994 Vehicle Name: Hartford International Opportunities
Strategy Assets: $9.0 billion Vehicle Assets: $3.4 billion
Vehicle Inception: 1996
Vehicle Fees: 0.74% (R6 - IHOVX)
Note: Different share class used in this report for performance due to a longer
track record
Investment Team:
This Fund is sub-advised by Wellington Management Company. Nicolas Choumenkovitch is the lead portfolio manager on the strategy, a position he has held since
2006. He works with portfolio manager Tara E. Connolly Stilwell. They are supported by dedicated research analysts and further by the global industry analysts at
Wellington.
Investment Philosophy:
The team is focused on return on capital. Their philosophy is based on the idea that returns on capital can be mis-priced by investors who don't recognize the
sustainability of returns or the rate of improvement. They believe that using fundamental bottom-up research can help them discover companies whose sustainability
of return on capital or improvement of return on capital are not reflected in share prices.
Process:
The team's process is driven by bottom-up fundamental research. Each member of the team, including the portfolio managers, have sector responsibilities. The
process starts with idea sourcing through the use of a number of factors including: company meetings, quantitative screens, or through other methods of analysis. The
team will also utilize Wellington's global industry analysts for potential ideas. After identifying an interesting opportunity, the team will focus on their fundamental
research effort. This research can include exploring the industry, management, value chain, and if the company has any unique assets. Evaluation of the management
team is an important consideration in their research process. The team will focus on the sustainability or improvement of returns on capital. They look to identify a
differentiated insight that helps them to add value over the market. In valuing companies, they tend to look at the relationship between valuation and return on
capital. Additionally, the team will use the discounted cash flow method in their analysis, which helps them to compare companies across sectors and countries. Other
valuation metrics that are appropriate for the stock's sector or industry can also be used in deciding in a price target.
Portfolio Construction:
The portfolio is built from the bottom-up and will tend to own between 70 and 120 holdings. Position sizes are normally between 0.5 to 3 percent, with a typical
maximum of 5 percent. Country and sector weights will generally be within 10 percent of the benchmark, the MSCI ACWI ex-USA Index. Emerging markets is typically
limited to the greater of 10% over the benchmark or a 25% absolute weight.
Risk Controls:
The team's focus on fundamental analysis is an important aspect of their risk management. Additionally, the strategy tends to follow broad guidelines to help stay
diversified across sectors and countries. The team will also use risk management tools in an effort to manage unintended risks.
For the prospectus please go to www.hartfordfunds.com
63
Data as of December 29, 2017 unless otherwise noted.
ANNUALIZED PERFORMANCE & PEER COMPARISON
YTD 1-Year 3-Year 5-Year 7-Year 10-Year
American Funds EuroPac Growth R5 31.09 31.09 9.61 9.16 7.00 3.90
Universe Ranking %6 6 1 4 2 9
Hartford International Oppts Y 24.71 24.71 8.61 8.25 6.36 3.09
Universe Ranking %52 52 7 12 10 22
MSCI AC World Index ex USA ND USD 27.19 27.19 7.83 6.80 4.93 1.84
Universe Ranking %22 22 28 49 64 43
-5
0
5
10
15
20
25
30
35
Total Annualized Return, %YTD 1-Year 3-Year 5-Year 7-Year 10-Year
5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile
American Funds EuroPac Growth R5 Hartford International Oppts Y MSCI AC World Index ex USA ND USD
Alternative share classes with longer track records may be shown for performance. Please refer to the manager summary pages for share class information.
Universe ranking is based on the Lipper International Large-Cap Core Universe.
Returns greater than one year are annualized.
64
Data as of December 29, 2017 unless otherwise noted.
CALENDAR YEAR PERFORMANCE
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
American Funds EuroPac Growth R5 -40.38 39.55 9.72 -13.33 19.57 20.54 -2.35 -0.53 1.00 31.09
Universe Ranking %22 13 19 53 35 47 21 21 62 6
Hartford International Oppts Y -42.46 33.07 15.02 -13.36 19.58 20.96 -4.10 1.56 1.15 24.71
Universe Ranking %50 30 2 53 35 40 25 1 61 52
MSCI AC World Index ex USA ND USD -45.53 41.45 11.15 -13.71 16.83 15.29 -3.87 -5.66 4.50 27.19
Universe Ranking %71 11 11 60 63 73 24 90 7 22
Alternative share classes with longer track records may be shown for performance. Please refer to the manager summary pages for share class information.
Universe ranking is based on the Lipper International Large-Cap Core Universe.
-50
-40
-30
-20
-10
0
10
20
30
40
50
Total Annualized Return, %Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile
American Funds EuroPac Growth R5 Hartford International Oppts Y MSCI AC World Index ex USA ND USD
65
Data as of December 29, 2017 unless otherwise noted.
THREE-YEAR ROLLING EXCESS RETURNS
-8
-6
-4
-2
0
2
4
6
Excess Annualized Return, %Dec-07Jun-08Dec-08Jun-09Dec-09Jun-10Dec-10Jun-11Dec-11Jun-12Dec-12Jun-13Dec-13Jun-14Dec-14Jun-15Dec-15Jun-16Dec-16Jun-17Dec-175th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile
American Funds EuroPac Growth R5 Hartford International Oppts Y MSCI AC World Index ex USA ND USD
66
Data as of December 29, 2017 unless otherwise noted.
RETURN VS. RISK
Ten Year
0
1
2
3
4
5
Total Annualized Return, %0 5 10 15 20 25
Total Annualized StdDev, %
Seven Year
0
2
4
6
8
10
Total Annualized Return, %0 5 10 15 20
Total Annualized StdDev, %
Three Year
0
2
4
6
8
10
12
Total Annualized Return, %0 5 10 15
Total Annualized StdDev, %
American Funds EuroPac Growth R5
Hartford International Oppts Y
MSCI AC World Index ex USA ND USD
Five Year
0
2
4
6
8
10
12
Total Annualized Return, %0 5 10 15
Total Annualized StdDev, %
3 Years 5 Years 7 Years 10 Years
Return Std Dev Return Std Dev Return Std Dev Return Std Dev
American Funds EuroPac Growth R5 9.61 10.79 9.16 10.52 7.00 12.88 3.90 17.42
Hartford International Oppts Y 8.61 10.38 8.25 10.36 6.36 12.58 3.09 18.13
MSCI AC World Index ex USA ND USD 7.83 12.04 6.80 11.50 4.93 13.78 1.84 18.94
Data greater than one year is annualized.
67
Data as of December 29, 2017 unless otherwise noted.
MPT STATISTICS
5 Year
Alpha, %Beta R-Squared, %Sharpe Ratio Tracking Error, %Batting Average
American Funds EuroPac Growth R5 2.72 0.85 89.22 0.87 3.98 0.56
Hartford International Oppts Y 1.90 0.83 91.98 0.81 3.59 0.50
MSCI AC World Index ex USA ND USD 0.00 1.00 100.00 0.65 0.00 0.00
36 Month Rolling Alpha
-8
-4
1
6
Alpha, %Mar-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
American Funds EuroPac Growth R5 Hartford International Oppts Y
36 Month Rolling Beta
0.8
1.0
1.2
BetaMar-08 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
5th to 25th Percentile 25th to Median Median to 75th Percentile 75th to 95th Percentile
American Funds EuroPac Growth R5 Hartford International Oppts Y
10 Year
Alpha, %Beta R-Squared, %Sharpe Ratio Tracking Error, %Batting Average
American Funds EuroPac Growth R5 2.04 0.90 96.03 0.29 3.95 0.50
Hartford International Oppts Y 1.26 0.94 95.62 0.24 4.00 0.47
MSCI AC World Index ex USA ND USD 0.00 1.00 100.00 0.17 0.00 0.00
PERFORMANCE STATISTICS
68
Data as of December 29, 2017 unless otherwise noted.
MARKET CAPTURE STATISTICS
Up/Down Market Capture Ratio
10 Years
60
70
80
90
100
110
120
Up Mkt Capture Ratio, %60 70 80 90 100 110 120
Down Mkt Capture Ratio, %
American Funds EuroPac Growth R5
Hartford International Oppts Y
MSCI AC World Index ex USA ND USD
Downside Risk
0
2
4
6
8
10
12
14
16
Total Annualized Semi Stdev, %5 Years 10 Years
Up/Down Market Capture Ratio
5 Years
60
70
80
90
100
110
120
Up Mkt Capture Ratio, %60 70 80 90 100 110 120
Down Mkt Capture Ratio, %
5 Years 10 Years
Up Mkt Capture
Ratio, %
Down Mkt Capture
Ratio, %
Annualized Semi
Stdev to date,%
Up Mkt Capture
Ratio, %
Down Mkt Capture
Ratio, %
Annualized Semi
Stdev to date,%
American Funds EuroPac Growth R5 91.91 76.65 6.47 94.52 87.53 12.33
Hartford International Oppts Y 85.47 74.44 6.37 97.26 92.97 12.69
69
Data as of December 29, 2017 unless otherwise noted.
REPORT GLOSSARY
Alpha - Alpha measures the difference between an investment's actual performance, and its expected performance as indicated by its market sensitivity (Beta). A positive Alpha indicates
the risk-adjusted performance is above that index.
Batting Average - This measures the frequency with which a manager performs better than a selected benchmark. It is computed by dividing the number of positive excess returns by the
total number of excess returns during the period.
Beta - Beta is defined as a Manager's sensitivity to market movements and is used to evaluate market related, or systematic risk. Beta is a measure of the linear relationship, over time, of
the Manager's returns and those of the Benchmark. Beta is computed by regressing the Manager's excess returns over the risk free rate (cash proxy) against the excess returns of the
Benchmark over the risk free rate. An investment that is as equally volatile as the market will have a Beta of 1.0; an investment half as volatile as the market will have a Beta of 0.5; and so
on. Thus, Betas higher than 1.0 indicate that the fund is more volatile than the market.
Down Market (Mkt) Capture Ratio - Down Market Capture Ratio is a measure of an investment's performance in down markets relative to the market itself. A down market is one in
which the market's return is less than zero. The lower the investment's Down Market Capture Ratio, the better the investment protected capital during a market decline. A negative Down
Market Capture Ratio indicates that an investment's returns rose while the market declined.
Downside Risk (Semi Standard Deviation, Semi StdDev, or Downside Deviation) - Downside Risk only identifies volatility on the down side. Downside Risk measures the variability of
returns below zero, whereas Standard Deviation attributes volatility in either direction to risk. The Downside Risk method calculates the deviations below zero for each observed return.
Each time a return falls below zero, the sum is divided by the number of observations and the square root is taken. This result is then shown on an annualized basis.
Excess - Denotes that a statistic is being measured relative to the Market Index selected.
R-Squared (R2) - This statistic indicates the degree to which the observed values of one variable, such as the returns of a managed portfolio, can be explained by, or are associated with the
values of another variable, such as a Market Index. The R2 values generally range from 0.0 to 1.0. An investment with an R2 of 1.0 is perfectly correlated with the market. An R2 of 0.95, for
example, implies that 95% of the fluctuations in a portfolio are explained by fluctuations in the market.
Sharpe Ratio - The Sharpe Ratio indicates the excess return per unit of total risk as measured by Standard Deviation. It is a ratio of excess returns over the risk free rate to the Standard
Deviation. The Sharpe Ratio is a measure of the premium earned for the risk incurred by the portfolio.
Standard Deviation (StdDev) - A measure of the extent to which observations in a series vary from the arithmetic mean of the series. The Standard Deviation of a series of asset returns is
a measure of volatility, or risk, of the asset. The more volatile the returns, the higher the standard deviation will be.
Style Map - Plots the historical exposures of a fund's style across appropriate dimensions, such as growth vs. value for equity funds. By viewing this chart, an investor can determine a
manager's style consistency over time. Returns based style analysis is used.
Tracking Error - Tracking Error is a measure of how closely an investment's returns track the returns of the selected Market Index. It is the annualized Standard Deviation of the
differences between the investment's and the associated index's returns. If an investment tracks its associated index closely, then Tracking Error will be low. If an investment tracks its
associated index perfectly, then Tracking Error will be zero.
Up Market (Mkt) Capture Ratio - Up Market Capture Ratio is a measure of a product's performance in up markets relative to the market itself. An up market is one in which the market's
return is greater than or equal to zero. The higher the investment's Up Market Capture Ratio, the better the investment capitalized on a rising market.
70