AGENDA MEETING OF THE RETIREMENT COMMITTEE WITH …Jan 27, 2015 · - 1 - agenda meeting of the...

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AGENDA

MEETING OF THE RETIREMENT COMMITTEE WITH BOARD OF DIRECTORS OF

ORANGE COUNTY WATER DISTRICT 18700 Ward Street, Fountain Valley, CA (714) 378-3200

Tuesday, January 27, 2015 – 8 a.m.

* The OCWD Retirement Committee meeting is noticed as a joint meeting with the Board of Directors for the purpose of strict compliance with the Brown Act and to allow all Board members to hear the presentations and participate in the discussions. OCWD Directors receive no additional compensation or stipend as a result of simultaneously convening this Board of Directors meeting. Items recommended for approval at this meeting will be placed on the Consent Calendar at the February 4, 2015 Board meeting.

ROLL CALL VISITOR PARTICIPATION Members of the audience wishing to address the Committee/Board on items of interest to the public are

requested to identify themselves. If the matter on which they wish to comment is an Agenda item, the visitor will be called on when that matter comes up for consideration.

ITEMS RECEIVED TOO LATE TO BE AGENDIZED

RECOMMENDATION: Determine need to take action on item(s) which arose subsequent to posting

of the Agenda (Adoption of this recommendation requires two-thirds vote of the Board/Committee, or, if less than two-thirds of the members are present,

a unanimous vote) CONSENT CALENDAR (ITEM NO. 1-2)

1. MINUTES OF RETIREMENT COMMITTEE MEETING HELD ON OCTOBER 28, 2014 RECOMMENDATION: Approve minutes as presented

2. RETIREMENT COMMITTEE “EMPLOYEE” APPOINTMENTS RECOMMENDATION: Agendize for the February 4 Board meeting: Approve the appointments

of the following employees on the Retirement Committee:

1. Sitting Member – Jason Dadakis (re-appoint for two year term);

2. First Alternate – Dave Bolin (appoint for a one year term); and

3. Second Alternate – Roy Herndon (re-appoint for a one year term)

END OF CONSENT CALENDAR MATTER FOR CONSIDERATION

3. 401(a) MONEY PURCHASE PLAN INVESTMENT LINE-UP AND RED FLAG FUND REVIEW

RECOMMENDATION: Agendize for the February 4 Board meeting: Take action as

appropriate

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INFORMATIONAL ITEM 4. GUARANTEED INCOME FUND INTEREST RATES CHAIR DIRECTION AS TO WHICH ITEMS IF ANY TO BE AGENDIZED AS A MATTER FOR

CONSIDERATION AT THE FEBRUARY 4 BOARD MEETING

ANNOUNCEMENTS/REPORTS ADJOURNMENT

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RETIREMENT COMMITTEE MEMBERS

DIRECTORS STAFF MEMBERS Roger Yoh, Chair Jason Dadakis Harry Sidhu Phil Harrington Vincent Sarmiento STAFF ALTERNATES

DIRECTOR ALTERNATES Kevin O’Toole (1st Alternate) Phil Anthony Roy Herndon (2nd Alternate)

Denis Bilodeau Shawn Dewane EMPLOYEE ADVISORY COMMITTEE Jan Flory Dave Bolin

Kathryn Barr John Bonsangue Dina Nguyen John Bruns Steve Sheldon Rita Hintlian Cathy Green Jana Safarik

In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the Orange County Water District, 18700 Ward Street, Fountain Valley, CA not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the District Secretary. Backup material for the Agenda is available at the District offices for public review and can be viewed online at the District’s website: www.ocwd.com

Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability-related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from the District Secretary at (714) 378-3233, by email at [email protected] by fax at (714) 378-3373. Notification 24 hours prior to the meeting will enable District staff to make reasonable arrangements to assure accessibility to the meeting.

As a general rule, agenda reports or other written documentation has been prepared or organized with respect to each item of business listed on the agenda, and can be reviewed at www.ocwd.com. Copies of these materials and other disclosable public records distributed to all or a majority of the members of the Board of Directors in connection with an open session agenda item are also on file with and available for inspection at the Office of the District Secretary, 18700 Ward Street, Fountain Valley, California, during regular business hours, 8 am to 5 pm, Monday through Friday. If such writings are distributed to members of the Board of Directors on the day of a Board meeting, the writings will be available at the entrance to the Board of Directors meeting room at the Orange County Water District office.

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MINUTES OF BOARD OF DIRECTORS MEETING WITH RETIREMENT COMMITTEE

ORANGE COUNTY WATER DISTRICT October 28, 2014 @ 8 a.m.

Director Anthony called the Retirement Committee meeting to order in Conference Room C-2 at the District office. The Assistant District Secretary called the roll as follows: Retirement Committee Members OCWD Staff Roger Yoh (not present) Mike Markus, General Manager Harry Sidhu (arrived 8:09 am) Stephanie Dosier, Plan Secretary Vincent Sarmiento (arrived 8:11 am) Judy-Rae Karlsen, Assistant District Secretary Phil Harrington - Staff Paula Bouyounes, Kim Dusky, Lisa Wirtz Jason Dadakis - Staff Others Jacquelyn Hylton, Sutherland Retirement Group Director Alternates Scott Sutherland, Sutherland Retirement Group Phil Anthony Jan Flory (not present) Employee Advisory Group Kathryn Barr (arrived 8:04 am) Roy Herndon (arrived 8:03 a.m.) Denis Bilodeau (not present) Jana Safarik (not present) Cathy Green John Bonsangue Steve Sheldon (not present) Dave Bolin Shawn Dewane (not present) John Bruns Rita Hintlian CONSENT CALENDAR The Consent Calendar was approved upon motion by Phil Harrington, seconded by Director Anthony carried (4-0) as follows. [Yes -Anthony, Green, Dadakis, Harrington/ No-0] 1. Minutes of Previous Meeting The Minutes of the August 26, 2014 Retirement Committee meeting were approved as presented. MATTER FOR CONSIDERATION Director Sidhu arrived at 8:09 a.m. and Director Sarmiento arrived at 8:11 a.m. during the following discussion. 2. 457(b) Deferred Compensation Plan Investment Line-Up Review and 401(a) Money Purchase Retirement Plan Red Flag Fund Review District Retirement Advisor Scott Sutherland presented a detailed performance review of the 457(b) Deferred Compensation Retirement Plan investment portfolio. He highlighted the performance of each red flagged fund in the 457(b) Deferred Compensation Retirement Plan and the 401(a) Money Purchase Retirement Plan and offered alternate funding options based on market trends and other significant performance indicators. Mr. Sutherland proposed investment fund recommendations based on previously determined performance indicators. Following the fund review, the Committee took the following actions.

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Upon motion made by Jason Dadakis, seconded by Director Sidhu and carried [5-0], the Committee recommended that the Board at its November 5 meeting: Approve the following actions for the 457(b) Deferred Compensation Plan and the 401(a) Money Purchase Retirement Plan investment portfolios. [Yes –Sidhu, Sarmiento, Dadakis, Harrington, Anthony / No - 0] 457 (b) Portfolio Funds Action Symbol Ivy Mid Cap Growth I Remove

Map To HMDYX

IYMIX Hartford Mid Cap Y Add HMDYX Scout Mid Cap Red Flag UMBMX Delaware Select Growth Instl Red Flag VAGGX PIMCO Total Return A Remove

Map to JMTAX

PTTAX JPMorgan Total Return A Add JMTAX 401 (a) Portfolio Funds Action Symbol MFS New Discovery R4 Remove

Map to FSSAX

MNDJX Franklin Small Cap Growth Adv Add FSSAX Victory Established Value A Red Flag VETAX Fidelity Low Priced Stock Red Flag FLPSX JPMorgan Large Cap growth A Red flag OLGAX Gabelli Asset AAA Red Flag GABAX PIMCO Total Return A Remove

Map to PINCX

PTTAX Putnam Income A Add PINCX Fidelity Spartan US Bond Index Red Flag FBIDX

DETERMINATION OF ADDITIONAL ITEMS TO BE PLACED ON CONSENT CALENDAR FOR NOVEMBER 5 BOARD MEETING The Committee recommended that Item No. 2 be placed on the Consent Calendar for the November 5 Board meeting. ADJOURNMENT There being no further business, the meeting was adjourned at 9:25 a.m.

_______________________________________

Retirement Plan Secretary Stephanie Dosier

AGENDA ITEM SUBMITTAL Meeting Date: January 27, 2015 Budgeted: N/A Budgeted Amount: N/A To: Retirement Committee Board of Directors

Cost Estimate: N/A Funding Source: N/A

Program/ Line Item No. N/A From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: S. Dosier CEQA Compliance: N/A Subject: RETIREMENT COMMITTEE “EMPLOYEE” APPOINTMENTS SUMMARY In August 2010, the Board approved the procedures for placing “employees” on the Retirement Committee. Sitting members of the Retirement Committee serve two year terms (expiring in alternating years) and the alternate members each serve one year terms. The Employee Advisory Committee (EAC) met recently to consider appointments to the Retirement Committee. Staff is recommending approval of the EAC’s appointments. RECOMMENDATION Agendize for the February 4 Board meeting: Approve the appointments of the following employees on the Retirement Committee: 1. Sitting Member – Jason Dadakis (re-appoint for two year term);

2. First Alternate – Dave Bolin (appoint for one year term); and

3. Second Alternate – Roy Herndon (re-appoint for one year term)



Program/ Line Item No. N/A From: Mike Markus General Counsel Approval: N/A Engineers/Feasibility Report: N/A Staff Contact: S. Dosier CEQA Compliance: N/A Subject: 401 (a) MONEY PURCHASE PLAN INVESTMENT LINE-UP AND RED

FLAG FUND REVIEW SUMMARY The Sutherland Group of Wells Fargo Advisors serves as the retirement plan advisor for the 401(a) Money Purchase Retirement Plan and the 457 (b) Deferred Compensation Plan. Part of their responsibility to the District is to provide periodic updates on fund performance for the Plan so that the Retirement Committee and the Board of Directors can meet their fiduciary responsibilities in monitoring investment options with the Plan. Scott Sutherland will present his review and recommendations to the Committee for consideration. Attachment(s): 401(a) Plan Review and 457(b) Plan Red Flag Fund Review RECOMMENDATION Take action as appropriate. DISCUSSION The purpose of this meeting is to review the due diligence that Scott Sutherland has done in his performance review of the retirement plans investment fund options. The meeting is to be a collaborative process in which the investment options are discussed in an effort to come to decisions on any fund line-up changes for the Plan. A key factor in the fund decisions is a review of each fund’s performance “net” of their expenses. An investment option with higher expenses will have to make up for that expense with better investment performance as compared to funds with lower expenses. Our retirement advisor will review each fund’s performance and provide his recommendations, if any, for fund changes per the guidelines of the retirement plan Investment Policy Statement. The plan review documentation completed by Scott Sutherland has been attached. Scott will review this document in detail at the meeting.

401(a) Plan Review

Presented By: January 27, 2015 Scott T. Sutherland, Senior Vice President – Investments Rachel D. Nolan, Financial Consultant Jacquelyn M. Hylton, Client Associate

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Orange County Water District

401(a) and 457 Retirement Committee Meeting Minutes October 28th, 2014

Meeting Attendees

From Orange County Water District:

Orange County Water District Retirement Committee

From the Sutherland Retirement Group of Wells Fargo Advisors:

Scott Sutherland, Jacquelyn Hylton

Agenda

457: Full review of all plan investments and potential new options including a review of the current

investments held on the “Red Flag” watch list.

a) Mid-Cap Growth – Ivy Mid Cap Growth I – Red Flagged April 2014

b) Intermediate-Term Bond – PIMCO Total Return A – Red Flagged August 2014

401(a): Review of the current investments held on the “Red Flag” watch list.

a) Small Growth – MFS New Discovery R4 – Red Flagged August 2014

b) Mid-Cap Value – Victory Established Value A – Red Flagged August 2014

c) Large Growth – JPMorgan Large Cap Growth A – Red Flagged August 2014

d) Large Blend – Gabelli Asset AAA – Red Flagged August 2014

e) Intermediate-Term Bond – PIMCO Total Return A – Red Flagged August 2014

Fund Additions

457:

a) Mid-Cap Growth – Hartford MidCap Y – HMDYX

b) Intermediate-Term Bond – JPMorgan Total Return A - JMTAX

401(a):

a) Small Growth – Franklin Small Cap Growth Adv – FSSAX

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b) Intermediate-Term Bond – Putnam Income A - PINCX

Decisions

457:

a) Mid-Cap Growth – Ivy Mid Cap Growth I – The Committee voted to remove this previously Red Flagged fund

from the 457 plan due to its recent underperformance and map all balances and elections into the newly

added Hartford MidCap Y fund listed above.

b) Mid-Cap Blend – Scout Mid Cap – The Committee voted to Red Flag this fund and review in ninety days.

c) Large Growth – Delaware Select Growth Instl – The Committee voted to Red Flag this fund and review in

ninety days.

d) Intermediate-Term Bond – PIMCO Total Return A – The Committee voted to remove this previously Red

Flagged fund from the 457 plan due to its recent underperformance and map all balances and elections into

the newly added JPMorgan Total Return A fund listed above.

e) Intermediate-Term Bond – Fidelity Spartan US Bond Idx Investor – The Committee voted to Red Flag this

fund and review in ninety days.

401(a):

a) Small Growth – MFS New Discovery R4 – The Committee voted to remove this previously Red Flagged fund

from the 401(a) plan due to its recent underperformance and map all balances and elections into the newly

added Franklin Small Cap Growth Adv fund listed above.

b) Mid-Cap Value – Victory Established Value A – The Committee voted to maintain the Red Flag on this fund

and review in ninety days.

c) Mid-Cap Value – Fidelity Low-Priced Stock – The Committee voted to Red Flag this fund and review in

ninety days.

d) Large Growth – JPMorgan Large Cap Growth A – The Committee voted to maintain the Red Flag this fund

and review in ninety days.

e) Large Blend – Gabelli Asset AAA – The Committee voted to maintain the Red Flag this fund and review in

ninety days.

f) Intermediate-Term Bond – PIMCO Total Return A – The Committee voted to remove this previously Red

Flagged fund from the 401(a) plan due to its recent underperformance and map all balances and elections into

the newly added Putnam Income A fund listed above.

f) Intermediate-Term Bond – Fidelity Spartan US Bond Idx Investor – The Committee voted to Red Flag this

fund and review in ninety days

Discussion Items

1) Prudential – The Committee asked the Sutherland Retirement Group to research the list of current mutual

funds that are generating excess revenue above what is required to compensate both vendors. The

Committee would like to determine if there are cheaper share classes available that can be exchanged into.

2) Mid-Cap Blend – The Committee asked the Sutherland Retirement Group to research if Principal MidCap S&P

600 Index R5 is an available share class investment option to replace the current R4 share class.

3

Morningstar Equity Styles

4.81% Large Capitalization Value

Putnam Equity Income A 4.81%

15.19% Large Capitalization Blend

Gabelli Asset AAA 1.22% Oakmark I 2.81%

Vanguard 500 Index Admiral 11.16%

11.90%

Large Capitalization Growth JPMorgan Large Cap Growth A 0.32%

T. Rowe Price New America Growth 5.10% Fidelity Advisor New Insights A 6.48%

4.17% Mid. Capitalization Value

Hotchkis & Wiley Value Opps Instl 0.51% Victory Established Value A 0.36% Fidelity Low-Priced Stock 3.30%

5.84% Mid. Capitalization Blend

Dreyfus Opportunistic MidCap Value I 1.29% Dreyfus MidCap Index 4.55%

2.66% Mid. Capitalization Growth

AllianceBern Discovery Gr A 1.06% Prudential Jennison Mid Cap Gr A 1.60%

0.68% Small Capitalization Value

Victory Small Company Opportunity I 0.68%

1.16%

Small Capitalization Blend T. Rowe Price Small-Cap Value Adv 1.16%

1.44%

Small Capitalization Growth Franklin Small Cap Growth Adv 1.44%

1.06% Global Equity

American Funds New Perspective R4 1.06%

0.91% Diversified Emerging Markets

Oppenheimer Developing Markets A 0.91%

2.96%

International Equity Vanguard International Growth Adm 2.65%

MFS International Value R3 0.31%

1.42% Specialty – Precious Metals

Tocqueville Gold 1.42%

0.92% Specialty – Natural Resources

Dreyfus Natural Resources A 0.92%

4.23% Specialty – Real Estate

Cohen & Steers Realty Shares 4.23%

2.13% Specialty – Technology

Ivy Science & Technology Y 2.13%

4.84% Asset Allocation / Lifestyle

American Funds American Balanced R4 2.36% American Funds Target Date R4 Funds:

2050 0.10% 2040 0.64% 2030 0.71% 2020 0.77% 2010 0.26%

4

Morningstar Fixed Income Styles

30.81% Short Term (0-2yr.), High Grade

Prudential Guaranteed Income Fund 30.81%

2.40% Intermediate Term (2-5yr.), High Grade Spartan U.S. Bond Index Investor 2.40%

0% Long Term (5-30yr.), High Grade

0.42% Short Term, Medium Grade

Columbia Inflation Protected Secs A 0.15% Putnam Income A 0.27%

0% Intermediate Term, Medium Grade

Columbia Inflation Protected Secs A

0% Long Term, Medium Grade

0% Short Term, Low Grade

0% Intermediate Term, Low Grade

0% Long Term, Low Grade

5

Style Fund Name Symbol #EE Fund Cat

1 Equity Precious Metals Tocqueville Gold TGLDX $1,244,710 1.42% 41 1.35% 1.42%

2 Natural Resources Dreyfus Natural Resources A DNLAX $803,045 0.92% 69 1.35% 1.49%

3 Real Estate Cohen & Steers Realty Shares CSRSX $3,711,800 4.23% 94 0.97% 1.32%

4 Technology Ivy Science & Technology Y WSTYX $1,868,861 2.13% 86 1.24% 1.59%

5 Diversified Emerging Mkts Oppenheimer Developing Markets A ODMAX $794,376 0.91% 52 1.32% 1.60%

6 Foreign Large Growth Vanguard International Growth Adm VWILX $2,325,460 2.65% 106 0.34% 1.41%

7 Foreign Large Blend MFS® International Value R3 MINGX $269,795 0.31% 29 1.07% 1.33%

8 World Stock American Funds New Perspective R4 RNPEX $931,241 1.06% 45 0.80% 1.41%

9 Small Growth Franklin Small Cap Growth Adv FSSAX $1,262,229 1.44% 90 0.91% 1.40%

10 Small Blend T. Rowe Price Small-Cap Value Adv PASVX $1,018,010 1.16% 70 1.24% 1.30%

11 Small Value Victory Small Company Opportunity I VSOIX $600,297 0.68% 43 0.99% 1.39%

12 Mid-Cap Growth AllianceBern Discovery Growth A CHCLX $931,527 1.06% 51 1.04% 1.36%

13 Mid-Cap Growth Prudential Jennison Mid Cap Growth A PEEAX $1,398,594 1.60% 71 1.05% 1.36%

14 Mid-Cap Blend Dreyfus Opportunistic Midcap Value I DVLIX $1,132,856 1.29% 50 0.90% 1.26%

15 Mid-Cap Blend Dreyfus MidCap Index PESPX $3,990,931 4.55% 113 0.50% 1.26%

16 Mid-Cap Value Hotchkis and Wiley Value Opps Instl HWAIX $445,045 0.51% 17 1.00% 1.27%

17 Mid-Cap Value Victory Established Value A VETAX $313,376 0.36% 21 1.05% 1.27%

18 Mid-Cap Value Fidelity® Low-Priced Stock FLPSX $2,893,350 3.30% 79 0.82% 1.27%

19 Large Growth JPMorgan Large Cap Growth A OLGAX $278,663 0.32% 20 1.05% 1.23%

20 Large Growth T. Rowe Price New America Growth PRWAX $4,473,513 5.10% 132 #4 0.81% 1.23%

21 Large Growth Fidelity Advisor® New Insights A FNIAX $5,681,703 6.48% 146 #3 0.94% 1.23%

22 Large Blend Gabelli Asset AAA GABAX $1,072,570 1.22% 46 1.35% 1.14%

23 Large Blend Oakmark I OAKMX $2,459,172 2.81% 71 0.95% 1.14%

Net Expense Ratio

401(a) Plan Level Diversification of Current Portfolio& Net Expense Ratio of Fund v. Category

Assets a/o 1/6/2015

Orange CountyWater District

6

Style Fund Name Symbol #EE Fund Cat

Net Expense Ratio

Assets a/o 1/6/2015

24 Large Blend Vanguard 500 Index Admiral VFIAX $9,780,947 11.16% 168 #2 0.05% 1.14%

25 Large Value Putnam Equity Income A PEYAX $4,213,633 4.81% 123 #5 1.02% 1.16%

26 Moderate Allocation American Funds American Balanced R4 RLBEX $2,069,699 2.36% 57 0.65% 1.29%

27 Target Date 2046-2050 American Funds 2050 Trgt Date Retire R4 RDITX $84,781 0.10% 5 0.79% 1.04%

28 Target Date 2036-2040 American Funds 2040 Trgt Date Retire R4 RDGTX $560,221 0.64% 19 0.78% 1.04%

29 Target Date 2026-2030 American Funds 2030 Trgt Date Retire R4 RDETX $624,628 0.71% 21 0.77% 1.01%

30 Target Date 2016-2020 American Funds 2020 Trgt Date Retire R4 RDCTX $676,797 0.77% 16 0.73% 0.97%

31 Target Date 2000-2010 American Funds 2010 Trgt Date Retire R4 RDATX $227,213 0.26% 8 0.71% 0.91%

32 Inflation-Protected Bond Columbia Infl Protected Secs A APSAX $130,087 0.15% 11 0.85% 0.81%

33 Intermediate-Term Bond Putnam Income A PINCX $240,015 0.27% 12 0.87% 0.89%

34 Intermediate-Term Bond Fidelity Spartan® US Bond Idx Investor FBIDX $2,100,442 2.40% 74 0.22% 0.89%

35 Safe Harbor Prudential Guaranteed Income Fund n/a $27,004,298 30.81% 221 #1 0.10% 0.63%

$87,653,886

Outstanding Loan Balance (81) $1,372,321

326Total Number of Participants

Plan Assets

7

Plan Administration

Sutherland Retirement Group of Wells Fargo Advisors On‐Site Meetings

February 2014 HQ Group & Individual Participant Meetings (19) Anaheim Group & Individual Participant Meetings (21)

March 2014 HQ Individual Participant Meetings (8)

April 2014 Retirement Committee Meeting

May 2014 HQ Group & Individual Participant Meetings (15) Anaheim Group & Individual Participant Meetings (19)

June 2014 ‐

July 2014 ‐

August 2014 Retirement Committee Meeting

HQ Group & Individual Participant Meetings (19) Anaheim Group & Individual Participant Meetings (16)

September 2014 Employee Advisory Committee

October 2014 Retirement Committee Meeting Health Fair

November 2014 HQ Group & Individual Participant Meetings (13) Anaheim Group & Individual Participant Meetings (18)

December 2014 ‐

January 2015 Retirement Committee Meeting

Sutherland Retirement Group of Wells Fargo Advisors Participant Phone Calls & Emails

10 Investments 5 Administration 2 Distribution

2 Rollover 0 Enrollment

8

Fiduciary Monitoring Example Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation

February 2011 - January 2014R

etur

n

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Standard Deviation0% 2% 4% 6% 8% 10% 12% 14% 16%

JPMorgan Large Cap Growth A

Delaware US Growth A

American Century Legacy Lg Cap Adv

Janus Forty S

Market Benchmark:Russell 1000 Growth

Capital Market LineThis axis measures risk.

This axis measures netperformance.

Manager Risk/ReturnSingle Computation

February 2009 - January 2014

Ret

urn

0%

5%

10%

15%

20%

25%

Standard Deviation0% 2% 4% 6% 8% 10% 12% 14% 16% 18%


Delaware US Growth A

American Century Legacy Lg Cap Adv

Janus Forty S


Capital Market Line

Outperforming with less volatility.

Underperforming with less volatility.

Overperforming with higher volatility.

Underperforming with higher volatility.

Calendar Year ReturnAs of January 2014

Ret

urn

-10%

0%

10%

20%

30%

40%

YTD 2013 2012 2011 2010

JPMorgan Large Cap Growth ADelaware US Growth AAmerican Century Legacy Lg Cap AdvJanus Forty SRussell 1000 Growth

This box shows yearly mutualfund performance versus the

benchmark.

Manager StyleSingle Computation

February 2011 - January 2014

Russell 1000 Value Russell 1000 Growth


Small

-1

0

1

Large

Value -1 0 1 Growth


This box shows thepurity of the mutual fund.

Created with Zephyr StyleADVISOR. Manager returns supplied by: Morningstar, Inc. 9

Fiduciary Monitoring Example Zephyr StyleADVISOR: Wells Fargo AdvisorsUpside Downside

Single Computation

February 2009 - January 2014 ( 5yr Lookback)U

psid

e%

80

85

90

95

100

Downside%80 85 90 95 100 105 110 115 120


This axis measures the upsidecapture compared to the

benchmark.

This axis measures thedownside capture compared

to the benchmark.

Manager vs Morningstar Large Growth: ReturnFebruary 2009 - January 2014 (not annualized if less than 1 year)

Ret

urn

-5

0

5

10

15

20

25

30

35

YTD 1 year 2 years 3 years 4 years 5 years

JPMorgan Large Cap Growth ADelaware US Growth AAmerican Century Legacy Lg Cap AdvJanus Forty SRussell 1000 Growth5th to 25th Percentile25th Percentile to MedianMedian to 75th Percentile75th to 95th Percentile


OCWD 401(a) - Precious Metals Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation

December 2011 - November 2014R

etur

n

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

Standard Deviation0% 5% 10% 15% 20% 25% 30% 35%

Tocqueville Gold

Market Benchmark:Morningstar Equity Precious Metals

Capital Market Line

Tocqueville Gold 1.42%, 41ee


December 2009 - November 2014

Ret

urn

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%


Tocqueville Gold

Market Benchmark:Morningstar Equity Precious Metals

Capital Market Line

Calendar Year ReturnAs of November 2014

Ret

urn

-60%

-40%

-20%

0%

20%

40%

60%

YTD 2013 2012 2011 2010

Tocqueville GoldMorningstar Equity Precious Metals

Manager Style36-Month Moving Windows, Computed Monthly




Small

-1

0

1

Large

Value -1 0 1 Growth

Tocqueville GoldMorningstar Equity Precious Metals

Created with Zephyr StyleADVISOR. Manager returns supplied by: Morningstar, Inc. Please see important disclosures at the conclusion of this presentation for more information. 11

OCWD 401(a) - Natural Resources Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

-2%

-1%

0%

1%

2%

3%

4%

5%


Dreyfus Natural Resources A

Market Benchmark:Morningstar Natural Resources

Capital Market Line

Dreyfus Natural Resources A 0.92%, 69ee



Re

turn

0%

1%

2%

3%

4%

5%

6%

7%

Standard Deviation0% 5% 10% 15% 20%

Dreyfus Natural Resources A

Market Benchmark:Morningstar Natural Resources

Capital Market Line


Ret

urn

-15%

-10%

-5%

0%

5%

10%

15%

20%

YTD 2013 2012 2011 2010

Dreyfus Natural Resources AMorningstar Natural Resources





Small

-1

0

1

Large

Value -1 0 1 Growth

Dreyfus Natural Resources AMorningstar Natural Resources


OCWD 401(a) - Specialty - Real Estate Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%


Cohen & Steers Realty Shares

Market Benchmark:Morningstar Real Estate

Capital Market Line

Cohen & Steers Realty Shares 4.23%, 94 ee



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%


Cohen & Steers Realty Shares

Market Benchmark:Morningstar Real Estate

Capital Market Line


Ret

urn

0%

5%

10%

15%

20%

25%

30%

YTD 2013 2012 2011 2010

Cohen & Steers Realty SharesMorningstar Real Estate


October 2011 - September 2014



Small

-1

0

1

Large

Value -1 0 1 Growth

Cohen & Steers Realty SharesMorningstar Real Estate


OCWD 401(a) - Technology Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%

30%


Ivy Science & Technology Y

Market Benchmark:Morningstar Technology

Capital Market Line

Ivy Science & Technology Y 2.13%, 86ee



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%


Ivy Science & Technology Y

Market Benchmark:Morningstar Technology

Capital Market Line


Ret

urn

-10%

0%

10%

20%

30%

40%

50%

YTD 2013 2012 2011 2010

Ivy Science & Technology YMorningstar Technology





Small

-1

0

1

Large

Value -1 0 1 Growth

Ivy Science & Technology YMorningstar Technology


OCWD 401(a) - Emerging Markets Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%


Oppenheimer Developing Markets A

Market Benchmark:Morningstar Diversified Emerging Mkts

Capital Market Line

Oppenheimer Developing Markets A 0.91%, 52ee



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1%

2%

3%

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7%

8%


Oppenheimer Developing Markets A

Market Benchmark:Morningstar Diversified Emerging Mkts

Capital Market Line


Ret

urn

-20%

-10%

0%

10%

20%

30%

YTD 2013 2012 2011 2010

Oppenheimer Developing Markets AMorningstar Diversified Emerging Mkts





Small

-1

0

1

Large

Value -1 0 1 Growth

Oppenheimer Developing Markets AMorningstar Diversified Emerging Mkts


OCWD 401(a) - Foreign Large Growth Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%

12%

14%


Vanguard International Growth Adm

Market Benchmark:Morningstar Foreign Large Growth

Capital Market Line

Vanguard Intl Growth Adm 2.65%, 106ee



Ret

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0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Standard Deviation0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Vanguard International Growth Adm

Market Benchmark:Morningstar Foreign Large Growth

Capital Market Line


Ret

urn

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

YTD 2013 2012 2011 2010

Vanguard International Growth AdmMorningstar Foreign Large Growth



MSCI EAFE LARGE VALUE MSCI EAFE LARGE GROWTH

MSCI EAFE MID VALUE MSCI EAFE MID GROWTH

MSCI EAFE SMALL VALUE MSCI EAFE SMALL GROWTH

Small

-1

0

1

Large

Value -1 0 1 Growth

Vanguard International Growth AdmMorningstar Foreign Large GrowthMSCI International Equity Style Basis

Created with Zephyr StyleADVISOR. Manager returns supplied by: Morningstar, Inc., Standard & Poors Please see important disclosures at the conclusion of this presentation for more information. 21

OCWD 401(a) - Foreign Large Blend Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%

12%

14%

16%


MFS International Value R3

Market Benchmark:MSCI EAFE Index

Capital Market Line

MFS International Value R3 0.31%, 29ee



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0%

2%

4%

6%

8%

10%

12%


MFS International Value R3

Market Benchmark:MSCI EAFE Index

Capital Market Line


Ret

urn

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

YTD 2013 2012 2011 2010

MFS International Value R3MSCI EAFE Index






Small

-1

0

1

Large

Value -1 0 1 Growth

MFS International Value R3MSCI EAFE IndexMSCI International Equity Style Basis


OCWD 401(a) - World Stock Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Standard Deviation0% 2% 4% 6% 8% 10% 12%

American Funds New Perspective R4

Market Benchmark:MSCI World Index

Capital Market Line

American Funds New Perspective R4 1.06%, 45ee



Ret

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0%

2%

4%

6%

8%

10%

12%


American Funds New Perspective R4

Market Benchmark:MSCI World Index

Capital Market Line


Ret

urn

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

YTD 2013 2012 2011 2010

American Funds New Perspective R4MSCI World Index






Small

-1

0

1

Large

Value -1 0 1 Growth

American Funds New Perspective R4MSCI World IndexMSCI International Equity Style Basis


OCWD 401(a) - Small Growth Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%


Franklin Small Cap Growth Adv


Capital Market Line

Franklin Small Cap Growth Adv 1.44%, 90ee



Ret

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0%

5%

10%

15%

20%


Franklin Small Cap Growth Adv


Capital Market Line


Ret

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0%

10%

20%

30%

40%

50%

60%

YTD 2013 2012 2011 2010

Franklin Small Cap Growth AdvRussell 2000 Growth





Small

-1

0

1

Large

Value -1 0 1 Growth

Franklin Small Cap Growth AdvRussell 2000 Growth


OCWD 401(a) - Small Blend Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%


T. Rowe Price Small-Cap Value Adv

Market Benchmark:Russell 2000

Capital Market Line

T. Rowe Price Small-Cap Value Adv 1.16%, 70ee

As of 6/30/2014 the T. Rowe Price Small-CapValue Adv fund had a manager change.



Ret

urn

0%

2%

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16%

18%


T. Rowe Price Small-Cap Value Adv

Market Benchmark:Russell 2000

Capital Market Line


Ret

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0%

10%

20%

30%

40%

YTD 2013 2012 2011 2010

T. Rowe Price Small-Cap Value AdvRussell 2000





Small

-1

0

1

Large

Value -1 0 1 Growth

T. Rowe Price Small-Cap Value AdvRussell 2000


OCWD 401(a) - Small Value Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%


Victory Small Company Opportunity I

Market Benchmark:Russell 2000 Value

Capital Market Line

Victory Small Company Opportunity I 0.68%, 43ee



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2%

4%

6%

8%

10%

12%

14%

16%

18%


Victory Small Company Opportunity I


Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

YTD 2013 2012 2011 2010

Victory Small Company Opportunity IRussell 2000 Value





Small

-1

0

1

Large

Value -1 0 1 Growth

Victory Small Company Opportunity IRussell 2000 Value


OCWD 401(a) - Mid Growth Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%


AllianceBern Discovery Growth A

Jennison Mid Cap Growth A

Market Benchmark:Russell Midcap Growth

Capital Market Line

AllianceBern Discovery Growth A 1.06%, 51eePrudential Jennison Mid Cap Growth A 1.60%, 71ee



Ret

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0%

5%

10%

15%

20%


AllianceBern Discovery Growth A

Jennison Mid Cap Growth A

Market Benchmark:Russell Midcap Growth

Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

YTD 2013 2012 2011 2010

AllianceBern Discovery Growth AJennison Mid Cap Growth ARussell Midcap Growth





Small

-1

0

1

Large

Value -1 0 1 Growth

AllianceBern Discovery Growth AJennison Mid Cap Growth ARussell Midcap Growth


OCWD 401a - Mid Blend Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Dreyfus Opportunistic Midcap Value I

Dreyfus MidCap Index

Market Benchmark:S&P MidCap 400

Capital Market Line

Dreyfus Opportunistic Midcap Value I 1.29%, 50eeDreyfus Midcap Index 4.55%, 113ee



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%


Dreyfus Opportunistic Midcap Value I

Dreyfus MidCap Index

Market Benchmark:S&P MidCap 400

Capital Market Line


Ret

urn

-10%

0%

10%

20%

30%

40%

YTD 2013 2012 2011 2010

Dreyfus Opportunistic Midcap Value IDreyfus MidCap IndexS&P MidCap 400





Small

-1

0

1

Large

Value -1 0 1 Growth

Dreyfus Opportunistic Midcap Value IDreyfus MidCap IndexS&P MidCap 400


OCWD 401(a) - Mid Value - Red Flag Review Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Hotchkis & Wiley Value Opps Instl

Victory Established Value A

Fidelityr Low-Priced Stock

Morningstar Mid-Cap Value

Market Benchmark:Russell Midcap Value

Capital Market Line

Hotchkis & Wiley Value Opps Instl 0.51%, 17eeVictory Established Value A 0.36%, 21eeFidelity Low-Priced Stock 3.30%, 79ee

RedFlagged8/2014

RedFlagged10/2014



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urn

0%

5%

10%

15%

20%


Hotchkis & Wiley Value Opps Instl





Capital Market Line


Ret

urn

-10%

0%

10%

20%

30%

40%

YTD 2013 2012 2011 2010

Hotchkis & Wiley Value Opps InstlVictory Established Value AFidelityr Low-Priced StockMorningstar Mid-Cap ValueRussell Midcap Value





Small

-1

0

1

Large

Value -1 0 1 Growth

Hotchkis & Wiley Value Opps InstlVictory Established Value AFidelityr Low-Priced StockMorningstar Mid-Cap ValueRussell Midcap Value


OCWD 401(a) - Mid Value - Red Flag Review Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation

June 2014 - November 2014R

etur

n

0%

1%

2%

3%

4%

5%

6%

7%

Standard Deviation0% 2% 4% 6% 8% 10%




Capital Market Line



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%





Capital Market Line


Ret

urn

0%

5%

10%

15%

20%

25%

30%

35%

YTD 2013 2012 2011 2010

Victory Established Value AFidelityr Low-Priced StockRussell Midcap Value





Small

-1

0

1

Large

Value -1 0 1 Growth

Victory Established Value AFidelityr Low-Priced StockRussell Midcap Value


OCWD 401(a) - Mid Value - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Hotchkis & Wiley Value Opps Instl (1.00%, 12.0 yrs.)

Victory Established Value A (1.05%, 16.4 yrs.)

Fidelityr Low-Priced Stock (0.82%, 25.0 yrs.)


Invesco American Value A (1.20%, 11.3 yrs.)

Fidelity Advisor® Mid Cap Value A (1.15%, 1.7 yrs.)

Principal MidCap Value III R3 (1.26%, 4.5 yrs.)

MFS® Mid Cap Value R2 (1.47%, 6.1 yrs.)

Harbor Mid Cap Value Admin (1.18%, 10.3 yrs.)


Capital Market Line

Hotchkis & Wiley Value Opps Instl 0.51%, 17eeVictory Established Value A 0.36%, 21eeFidelity Low-Priced Stock 3.30%, 79ee

RedFlagged8/2014

RedFlagged10/2014



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urn

0%

5%

10%

15%

20%


Hotchkis & Wiley Value Opps Instl (25 bps + $16/head or 20 bps Sub-TA)

Victory Established Value A (25 bps)

Fidelityr Low-Priced Stock (25 bps)


Invesco American Value A (70 bps)

Fidelity Advisor® Mid Cap Value A (50 bps)

Principal MidCap Value III R3 (65 bps)

MFS® Mid Cap Value R2 (65 bps)

Harbor Mid Cap Value Admin (25 bps)


Capital Market Line


Ret

urn

-10%

0%

10%

20%

30%

40%

YTD 2013 2012 2011 2010

Hotchkis & Wiley Value Opps InstlVictory Established Value AFidelityr Low-Priced StockMorningstar Mid-Cap ValueInvesco American Value AFidelity Advisor® Mid Cap Value APrincipal MidCap Value III R3MFS® Mid Cap Value R2Harbor Mid Cap Value AdminRussell Midcap Value





Small

-1

0

1

Large

Value -1 0 1 Growth



OCWD 401(a) - Mid Value - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsUpside Downside

Single Computation

December 2009 - November 2014 ( 5yr Lookback)U

psid

e%

85

90

95

100

105

110

115

Downside%90 95 100 105 110


Manager vs Morningstar Mid-Cap Value: ReturnDecember 2009 - November 2014 (not annualized if less than 1 year)

Ret

urn

0

5

10

15

20

25

30


Hotchkis & Wiley Value Opps InstlVictory Established Value AFidelityr Low-Priced StockMorningstar Mid-Cap ValueInvesco American Value AFidelity Advisor® Mid Cap Value APrincipal MidCap Value III R3MFS® Mid Cap Value R2Harbor Mid Cap Value AdminRussell Midcap Value5th to 25th Percentile25th Percentile to MedianMedian to 75th Percentile75th to 95th Percentile


OCWD 401(a) - Large Growth - Red Flag ReviewZephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%



T. Rowe Price New America Growth

Fidelity Advisor New Insights A

Morningstar Large Growth


Capital Market Line

JPMorgan Large Cap Growth A 0.32%, 20eeT. Rowe Price New America Growth 5.10%, 132eeFidelity Advisor New Insights A 6.48%, 146ee

RedFlagged8/2014

#4#3



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%




Fidelity Advisor New Insights A



Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

YTD 2013 2012 2011 2010

JPMorgan Large Cap Growth AT. Rowe Price New America GrowthFidelity Advisor New Insights AMorningstar Large GrowthRussell 1000 Growth





Small

-1

0

1

Large

Value -1 0 1 Growth

JPMorgan Large Cap Growth AT. Rowe Price New America GrowthFidelity Advisor New Insights AMorningstar Large GrowthRussell 1000 Growth


OCWD 401(a) - Large Growth - Red Flag ReviewZephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%

12%




Capital Market Line



Ret

urn

0%

2%

4%

6%

8%

10%

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14%

16%

18%

20%




Capital Market Line


Ret

urn

0%

5%

10%

15%

20%

25%

30%

35%

YTD 2013 2012 2011 2010

JPMorgan Large Cap Growth ARussell 1000 Growth





Small

-1

0

1

Large

Value -1 0 1 Growth

JPMorgan Large Cap Growth ARussell 1000 Growth


OCWD 401(a) - Large Growth - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


JPMorgan Large Cap Growth A (1.05%, 10.3 yrs.)

T. Rowe Price New America Growth (0.81%, 1.6 yrs.)

Fidelity Advisor New Insights A (0.94%, 11.4 yrs.)


Putnam Growth Opportunities A (1.10%, 5.9 yrs.)

Alger Spectra I (1.28%, 10.3 yrs.)

Columbia Large Cap Growth A (1.14%, 9.3 yrs.)

Goldman Sachs Lg Cap Gr Insights A (0.96%, 3.3 yrs.)

MFS® Growth R3 (1.01%, 12.7 yrs.)

JPMorgan Intrepid Growth A (0.94%, 9.1 yrs.)


Capital Market Line

JPMorgan Large Cap Growth A 0.32%, 20eeT. Rowe Price New America Growth 5.10%, 132eeFidelity Advisor New Insights A 6.48%, 146ee

RedFlagged8/2014

#4#3



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%


JPMorgan Large Cap Growth A (55 bps)

T. Rowe Price New America Growth (15 bps)

Fidelity Advisor New Insights A (50 bps)


Putnam Growth Opportunities A (55 bps)

Alger Spectra I (50 bps)

Columbia Large Cap Growth A (50 bps)

Goldman Sachs Lg Cap Gr Insights A (55 bps)

MFS® Growth R3 (50 bps)

JPMorgan Intrepid Growth A (55 bps)


Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

YTD 2013 2012 2011 2010

JPMorgan Large Cap Growth AT. Rowe Price New America GrowthFidelity Advisor New Insights AMorningstar Large GrowthPutnam Growth Opportunities AAlger Spectra IColumbia Large Cap Growth AGoldman Sachs Lg Cap Gr Insights AMFS® Growth R3JPMorgan Intrepid Growth ARussell 1000 Growth





Small

-1

0

1

Large

Value -1 0 1 Growth



OCWD 401(a) - Large Growth - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsUpside Downside

Single Computation


psid

e%

85

90

95

100

105

110

115

Downside%90 95 100 105 110 115 120


Manager vs Morningstar Large Growth: ReturnDecember 2009 - November 2014 (not annualized if less than 1 year)

Ret

urn

0

5

10

15

20

25

30


JPMorgan Large Cap Growth AT. Rowe Price New America GrowthFidelity Advisor New Insights AMorningstar Large GrowthPutnam Growth Opportunities AAlger Spectra IColumbia Large Cap Growth AGoldman Sachs Lg Cap Gr Insights AMFS® Growth R3JPMorgan Intrepid Growth ARussell 1000 Growth5th to 25th Percentile25th Percentile to MedianMedian to 75th Percentile75th to 95th Percentile


OCWD 401(a) - Large Blend - Red Flag Review Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Gabelli Asset AAA

Oakmark I

Vanguard 500 Index Admiral

Morningstar Large Blend

Market Benchmark:S&P 500

Capital Market Line

Gabelli Asset AAA 1.22%, 46eeOakmark I 2.81%, 71eeVanguard 500 Index Admiral 11.16%, 168ee

RedFlagged8/2014

#2



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%


Gabelli Asset AAA

Oakmark I

Vanguard 500 Index Admiral



Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

YTD 2013 2012 2011 2010

Gabelli Asset AAAOakmark IVanguard 500 Index AdmiralMorningstar Large BlendS&P 500





Small

-1

0

1

Large

Value -1 0 1 Growth

Gabelli Asset AAAOakmark IVanguard 500 Index AdmiralMorningstar Large BlendS&P 500


OCWD 401(a) - Large Blend - Red Flag Review Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%


Gabelli Asset AAA


Capital Market Line



Ret

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0%

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8%

10%

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16%

18%


Gabelli Asset AAA


Capital Market Line


Ret

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0%

5%

10%

15%

20%

25%

30%

35%

YTD 2013 2012 2011 2010

Gabelli Asset AAAS&P 500





Small

-1

0

1

Large

Value -1 0 1 Growth

Gabelli Asset AAAS&P 500


OCWD 401(a) - Large Blend - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Gabelli Asset AAA (1.35%, 28.8 yrs.)

Oakmark I (0.95%, 14.8 yrs.)

Vanguard 500 Index Admiral (0.05%, 23.1 yrs.)


Fidelity Advisor® Large Cap A (1.25%, 9.6 yrs.)

Hartford Disciplined Equity R4 (1.20%, 4.8 yrs.)

Vanguard Dividend Growth Inv (0.31%, 8.9 yrs.)

Fidelity Advisor® Diversified Stock A (0.81%, 8.2 yrs.)

Columbia Contrarian Core A (1.12%, 9.8 yrs.)

T. Rowe Price Dividend Growth Adv (0.93%, 14.8 yrs.)


Capital Market Line

Gabelli Asset AAA 1.22%, 46eeOakmark I 2.81%, 71eeVanguard 500 Index Admiral 11.16%, 168ee

RedFlagged8/2014

#2

Vanguard Dividend Growth Inv has aminimum initial purchase of $3M.



Ret

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0%

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6%

8%

10%

12%

14%

16%

18%


Gabelli Asset AAA (25 bps)

Oakmark I (35 bps)

Vanguard 500 Index Admiral (0 bps)


Fidelity Advisor® Large Cap A (50 bps)

Hartford Disciplined Equity R4 (50 bps)

Vanguard Dividend Growth Inv (0 bps)

Fidelity Advisor® Diversified Stock A (50 bps)

Columbia Contrarian Core A (50 bps)

T. Rowe Price Dividend Growth Adv (40 bps)


Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

YTD 2013 2012 2011 2010

Gabelli Asset AAAOakmark IVanguard 500 Index AdmiralMorningstar Large BlendFidelity Advisor® Large Cap AHartford Disciplined Equity R4Vanguard Dividend Growth InvFidelity Advisor® Diversified Stock AColumbia Contrarian Core AT. Rowe Price Dividend Growth AdvS&P 500





Small

-1

0

1

Large

Value -1 0 1 Growth



OCWD 401(a) - Large Blend - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsUpside Downside

Single Computation


psid

e%

80

85

90

95

100

105

110

115

Downside%75 80 85 90 95 100 105 110 115


Manager vs Morningstar Large Blend: ReturnDecember 2009 - November 2014 (not annualized if less than 1 year)

Ret

urn

0

5

10

15

20

25

30


Gabelli Asset AAAOakmark IVanguard 500 Index AdmiralMorningstar Large BlendFidelity Advisor® Large Cap AHartford Disciplined Equity R4Vanguard Dividend Growth InvFidelity Advisor® Diversified Stock AColumbia Contrarian Core AT. Rowe Price Dividend Growth AdvS&P 5005th to 25th Percentile25th Percentile to MedianMedian to 75th Percentile75th to 95th Percentile


OCWD 401(a) - Large Value Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Putnam Equity Income A


Capital Market Line

Putnam Equity Income A 4.81%, 123ee

#5



Re

turn

0%

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4%

6%

8%

10%

12%

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16%

18%


Putnam Equity Income A


Capital Market Line


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5%

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15%

20%

25%

30%

35%

YTD 2013 2012 2011 2010

Putnam Equity Income ARussell 1000 Value





Small

-1

0

1

Large

Value -1 0 1 Growth

Putnam Equity Income ARussell 1000 Value


OCWD 401(a) - Balanced Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%

12%

14%

16%


American Funds American Balanced R4

Market Benchmark:Morningstar Moderate Allocation

Capital Market Line

American Funds American Balanced R4 2.36%, 57ee



Ret

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2%

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6%

8%

10%

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14%


American Funds American Balanced R4

Market Benchmark:Morningstar Moderate Allocation

Capital Market Line


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0%

5%

10%

15%

20%

YTD 2013 2012 2011 2010

American Funds American Balanced R4Morningstar Moderate Allocation





Small

-1

0

1

Large

Value -1 0 1 Growth

American Funds American Balanced R4Morningstar Moderate Allocation


OCWD 401(a) - Inflation-Protected Bond Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%


Columbia Infl Protected Secs A

Market Benchmark:Morningstar Inflation-Protected Bond

Capital Market Line

Columbia Infl Protected Secs A 0.15%, 11ee



Re

turn

0%

0.5%

1%

1.5%

2%

2.5%

3%

3.5%


Columbia Infl Protected Secs A

Market Benchmark:Morningstar Inflation-Protected Bond

Capital Market Line


Ret

urn

-10%

-5%

0%

5%

10%

15%

YTD 2013 2012 2011 2010

Columbia Infl Protected Secs AMorningstar Inflation-Protected Bond



sbc2a13 sbc2a10p

sbc3b13 sbc3b10p

Lo_Qual

-1

0

1

Hi_Qual

Short -1 0 1 Long

Columbia Infl Protected Secs AMorningstar Inflation-Protected BondCitigroup Corporate Bond Indexes


OCWD 401(a) - Intermediate Term Bond - Red Flag ReviewZephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

1%

2%

3%

4%

5%

6%

7%

Standard Deviation0% 0.5% 1% 1.5% 2% 2.5% 3%

Putnam Income A

Fidelity Spartan® US Bond Idx Investor

Market Benchmark:Barclays U.S. Aggregate

Capital Market Line

Putnam Income A 0.27%, 12eeFidelity Spartan US Bond Idx Inv 2.40%, 74 ee

RedFlagged10/2014



Ret

urn

0%

1%

2%

3%

4%

5%

6%

7%


Putnam Income A



Capital Market Line


Ret

urn

-2%

0%

2%

4%

6%

8%

10%

12%

YTD 2013 2012 2011 2010

Putnam Income AFidelity Spartan® US Bond Idx InvestorBarclays U.S. Aggregate



sbc2a13 sbc2a10p

sbc3b13 sbc3b10p

Lo_Qual

-1

0

1

Hi_Qual

Short -1 0 1 Long

Putnam Income AFidelity Spartan® US Bond Idx InvestorBarclays U.S. AggregateCitigroup Corporate Bond Indexes


OCWD 401(a) - Intermediate Term Bond - Red Flag ReviewZephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

0.5%

1%

1.5%

2%

Standard Deviation0% 0.2% 0.4% 0.6% 0.8% 1% 1.2% 1.4% 1.6% 1.8%



Capital Market Line



Ret

urn

0%

1%

2%

3%

4%

5%

6%

Standard Deviation0% 0.5% 1% 1.5% 2% 2.5%



Capital Market Line


Ret

urn

-2%

0%

2%

4%

6%

8%

YTD 2013 2012 2011 2010

Fidelity Spartan® US Bond Idx InvestorBarclays U.S. Aggregate



sbc2a13 sbc2a10p

sbc3b13 sbc3b10p

Lo_Qual

-1

0

1

Hi_Qual

Short -1 0 1 Long

Fidelity Spartan® US Bond Idx InvestorBarclays U.S. AggregateCitigroup Corporate Bond Indexes


OCWD 401(a) - Intermediate Term Bond - AlternativesZephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

1%

2%

3%

4%

5%

6%

7%

Standard Deviation0% 0.5% 1% 1.5% 2% 2.5% 3% 3.5%

Putnam Income A (0.87%, 9.8 yrs.)

Fidelity Spartan® US Bond Idx Investor (0.22%, 2.3 yrs.)

Delaware Diversified Income A (0.90%, 13.8 yrs.)

Franklin Total Return A (0.89%, 16.3 yrs.)

Hartford Total Return Bond R4 (0.85%, 2.8 yrs.)

BlackRock Total Return Inv A (0.79%, 4.3 yrs.)

Fidelity Advisorr Total Bond T (0.78%, 10.0 yrs.)

Vanguard Total Bond Market Index Adm (0.08%, 1.8 yrs.)

JPMorgan Total Return A (0.70%, 6.5 yrs.)


Capital Market Line

Putnam Income A 0.27%, 12eeFidelity Spartan US Bond Idx Inv 2.40%, 74 ee

RedFlagged10/2014



Ret

urn

0%

1%

2%

3%

4%

5%

6%

7%


Putnam Income A (55 bps)

Fidelity Spartan® US Bond Idx Investor (0 bps)

Delaware Diversified Income A (65 bps)

Franklin Total Return A (25 bps + $12/head)

Hartford Total Return Bond R4 (50 bps)

BlackRock Total Return Inv A

Fidelity Advisorr Total Bond T (50 bps)

Vanguard Total Bond Market Index Adm

JPMorgan Total Return A (55 bps)


Capital Market Line


Ret

urn

-2%

0%

2%

4%

6%

8%

10%

12%

YTD 2013 2012 2011 2010

Putnam Income AFidelity Spartan® US Bond Idx InvestorDelaware Diversified Income AFranklin Total Return AHartford Total Return Bond R4BlackRock Total Return Inv AFidelity Advisorr Total Bond TVanguard Total Bond Market Index AdmJPMorgan Total Return ABarclays U.S. Aggregate



sbc2a13 sbc2a10p

sbc3b13 sbc3b10p

Lo_Qual

-1

0

1

Hi_Qual

Short -1 0 1 Long

Putnam Income AFidelity Spartan® US Bond Idx InvestorDelaware Diversified Income AFranklin Total Return AHartford Total Return Bond R4BlackRock Total Return Inv AFidelity Advisorr Total Bond TVanguard Total Bond Market Index AdmJPMorgan Total Return ABarclays U.S. AggregateCitigroup Corporate Bond Indexes


OCWD 401(a) - Intermediate Term Bond - AlternativesZephyr StyleADVISOR: Wells Fargo AdvisorsUpside Downside

Single Computation


psid

e%

100

105

110

115

120

125

Downside%20 40 60 80 100 120

Putnam Income AFidelity Spartan® US Bond Idx InvestorDelaware Diversified Income AFranklin Total Return AHartford Total Return Bond R4BlackRock Total Return Inv AFidelity Advisorr Total Bond TVanguard Total Bond Market Index AdmJPMorgan Total Return ABarclays U.S. Aggregate

Manager vs Morningstar Intermediate-Term Bond: ReturnDecember 2009 - November 2014 (not annualized if less than 1 year)

Ret

urn

0

1

2

3

4

5

6

7

8


Putnam Income AFidelity Spartan® US Bond Idx InvestorDelaware Diversified Income AFranklin Total Return AHartford Total Return Bond R4BlackRock Total Return Inv AFidelity Advisorr Total Bond TVanguard Total Bond Market Index AdmJPMorgan Total Return ABarclays U.S. Aggregate5th to 25th Percentile25th Percentile to MedianMedian to 75th Percentile75th to 95th Percentile


0160317 RSFS060 0160317-00004-00

Guaranteed Income Fund Third Quarter 2014 Fund Fact Sheet

Key Facts ISSUER: Prudential Retirement Insurance and Annuity Company INVESTMENT ADVISER: Prudential Investment Management, Inc. FUND CATEGORY: Stable Value NET ASSETS: $17,894 Million INCEPTION DATE: January 1, 1981

Investor Risk Profile This Fund may be suitable for investors who seek: ■ Preservation of capital plus competitive

intermediate-term returns. ■ Liquidity and income.

Commercial Mortgage Loans1 19% Public Corporate Bonds 36% Private Securities 21% CMBS2 10% ABS3 5% Agency MBS 9% US Treasury & Agencies 0% Other4 0% Cash and Short Term 0%

Portfolio Allocation As of 09/30/2014

Guarantee Quality AA- Average Duration 3.6 Total High Yield Exposure 5.04% (included in the above allocations)

U.S. Treasury Rates As of 09/30/2014

Objective & Structure The Guaranteed Income Fund (GIF) is a Stable Value fund designed to provide safety of principal, liquidity,and a competitive rate of return. The Fund Offers ■ Stability of crediting rate ■ Guaranteed protection of principal and accumulated interest from market volatility ■ Intermediate-term fixed income returns Features ■ Principal and accumulated interest are fully guaranteed by Prudential Retirement Insurance and Annuity

Company (PRIAC). ■ The guaranteed interest rate is announced in advance and is guaranteed for a six-month period.5 A

minimum rate will apply. ■ GIF invests in a broadly diversified, fixed-income portfolio within PRIAC’s general account. The portfolio

is primarily invested in public bonds, commercial mortgages and private placement bonds.

1 May include agriculture loans, transfer employee mortgages and residential mortgages 2 CMBS = Commercial Mortgage Backed Securities 3 Includes ABS = Asset Backed Securities, RMBS = Residential Mortgage Backed Securities, CMO = Collateralized Mortgage Obligation

Securities 4 May include equity, real estate and derivatives used to hedge various risks 5 An annual rate guarantee may apply to certain 403(b) or nonqualified plan arrangements. Contact Prudential for further information. Portfolio allocation is subject to change. Claims-paying ratings represents the opinions of rating agencies regarding the financial ability of an insurance company to meet itsobligations under its insurance policies. According to Standard & Poor's publications, an insurer rated ‘AA-’ (4th category of 21) has verystrong financial security characteristics, differing only slightly from those rated higher. An insurer rated “AAA” has extremely strongfinancial security characteristics. "AAA" is the highest Insurer Financial Strength Rating assigned by Standard & Poor's. Duration is a time measure (in years) of a fixed income security’s interest-rate sensitivity. Average duration is a weighted average of theduration of the underlying fixed-income securities within the portfolio. The Guaranteed Income Fund (GIF) is a group annuity product issued by Prudential Retirement Insurance and Annuity Company (PRIAC),Hartford, CT 06103. Amounts contributed to the contract are deposited in PRIAC’s general account. Payment obligations and the fulfillmentof any guarantees specified in the group annuity contract are insurance claims supported by the full faith and credit of PRIAC. However, ifyou are a participant in an unfunded nonqualified deferred compensation plan, GIF may be only a reference account that is used todetermine the plan’s liability to you, and may not represent an actual investment in the group annuity. PRIAC periodically resets the interestrate credited on contract balances, subject to a minimum rate specified in the group annuity contract. The minimum interest rate may begreater for certain 403(b) or nonqualified plan arrangements. Contact Prudential for further information. Past interest rates are not indicativeof future rates. This product is neither a mutual fund nor a bank product. The obligations of PRIAC are not insured by the FDIC or any otherfederal governmental agency. Contract form # GA-2020-IA-0805 or state variation thereof. Prudential Retirement is compensated in connection with this product when general account investment returns exceed the interestcredited on contract balances. Prudential Retirement may earn fee revenue in addition to the foregoing compensation if your plan hasagreed to pay contract charges, which are sometimes paid in respect of plan and participant recordkeeping and distribution services. Forsome plans, Prudential Retirement uses a portion of its aggregate compensation to satisfy the plan’s request for allowances and forpayments to defray plan expenses. If Prudential Retirement’s aggregate compensation from this product and from other plan investmentproducts exceeds the costs of servicing your plan, Prudential Retirement earns a profit; otherwise we incur a loss. Frequent exchanging between plan investment options may harm long-term investors. Your plan or the plan’s investment funds may haveprovisions to deter exchanges that may be abusive. These policies may require us to modify, restrict or suspend purchase or exchangeprivileges and/or impose redemption fees. Prudential Investment Management Inc. (PIM) is a Prudential Financial company. PIM is a registered investment adviser. © 2014 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges areservice marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.

96

PREPARED FOR: Orange County Water District

PREPARED BY: Scott SutherlandWells Fargo Advisors, LLC (PCG)

DATE: 01/27/2015

3Q 2014

Target Date Analysis

American Funds Trgt Date Rtrmt

This material has been provided to you for use in a private and confidential meeting to discuss a potential or existing investment services relationship. This presentation is not an advertisement and is not intended for public use or distributionbeyond our private meeting. The output of this report is generated using data provided by Morningstar, Inc. and has been obtained directly from the fund companies and regulatory filings. Although carefully verified, data on compilations is notguaranteed by Morningstar, Inc. and may be incomplete. No offer or solicitations to buy or sell any of the securities herein is being made by Morningstar, Inc. This data is subject to unintentional errors, omissions and changes prior topresentation without notice. The content within this presentation is for informational purposes only and should not be construed as investment advice. This presentation may not be reproduced in whole or in part in any manner. Incorporationinto any information retrieval system is prohibited. It is the responsibility of the user to independently confirm its accuracy and completeness. There is no guarantee that any forecasts or opinions in this material will be realized. Please considerthe investment objectives, risks, charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds and can be obtained by contacting your financial professional. Please read theprospectus carefully before investing. Past performance is no guarantee of future results. Effective May 1, 2014, ING U.S. Investment Management changed its name to Voya Investment Management, and current ING funds were renamed toVoya or VY. Effective August 11, 2014, DWS Funds changed its name to Deutsche Funds, and current DWS funds were renamed to Deutsche. Certain data feeds from Morningstar are as of 6/30/14, and those data points may not reflectthese changes.

©2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor itscontent providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

97

As of 09/30/2014. ©2015 Morningstar, Inc. All Rights Reserved.�The fund companies displayed in the chart above appear based upon advisor request. Percentage of equity exposure at age 65: Strategic allocation to non-fixed incomeasset�classes at target date, typically age target date. Asset class diversification: Calculated using target date funds' asset allocation breakdown to 12 J.P. Morgan-defined separate asset classes. The 12 asset classes include: U.S. largecap equity, U.S. mid cap equity, U.S. small cap equity, International equity, Emerging markets equity, REITs, Commodities, U.S. fixed income, High yield, U.S. TIPs, International fixed income and Emerging markets debt. High yieldexposure is checked if any of the funds within the target date strategy are assigned to Morningstar Categories High yield bond or High yield muni. Please see Target Date Methodology book for additional information.

2

98

ASSET CLASS SUMMARY

American Funds Trgt Date Ret

U.S. large cap

U.S. mid cap

U.S. small cap

International equity

Emerging markets equity

U.S. fixed income

U.S. TIPS

High yield fixed income

International fixed income

Emerging markets debt

REITs

Commodities

The fund companies displayed in the chart above appear based upon advisor request. Asset class diversification: Calculated using the target date funds' asset allocation breakdown to 12 J.P. Morgan-defined separate asset classes asreported to Morningstar, Inc. through asset allocation, capitalization, credit quality, sector, region and country data as well as underlying fund categorization. The 12 asset classes include: U.S. large cap equity, U.S. mid cap equity, U.S.small cap equity, International equity, Emerging markets equity, REITs, Commodities, U.S. fixed income, High yield, U.S. TIPs, International fixed income and Emerging markets debt. High yield exposure is checked if any of the fundswithin the target date strategy are assigned to Morningstar Categories High yield bond or High yield muni. Please see Target Date Methodology book for additional information.

3

99

EQUITY GLIDE PATH COMPARISON

Percent of equities vs. years before/after retirement

As of 09/30/2014 with the exception of Industry Equity Range (Min, Max), which is as of 06/30/2014.©2015 Morningstar, Inc. All Rights Reserved.

4

100

SUMMARY

American Funds Trgt Date Rtrmt

MUTUAL FUND ASSETS

($mm) as of 09/30/2014 $24,019.00

Earliest inception date 02/2007

GLIDE PATH

% of equity at age 65 45%

# of asset classes 9

Glide path end (age) 95

Tactical (Y/N) Yes

FUND STRUCTURE

Fund of funds Yes

Open architecture (%) 0%

Active Exposure (%) 100%

UNDERLYING FUND INFORMATION

# of underlying funds 22

Average manager tenure (years) 11.25

Longest manager tenure (years) 25.66

As of 09/30/2014 with the exception of Strategic or tactical, Open architecture, Average manager tenure and Longest manager tenure, which is as of 06/30/2014.©2015 Morningstar, Inc. All Rights Reserved.

5

101

CALENDAR YEAR PERFORMANCE

Target Date Fund Name 2013Total

Return

2012Total

Return

2011Total

Return

2010Total

Return

2009Total

Return

2008Total

Return

2007Total

Return

2006Total

Return

2005Total

Return

2004Total

Return

RETIREMENT INCOME

S&P Target Date Retirement Income TR USD 6.28 7.51 3.98 9.09 11.37 (13.09) 6.19 8.77 3.53 7.05

TARGET DATE 2000-2010

American Funds 2010 Trgt Date Retire R4 12.09 10.17 3.36 9.53 23.33 (27.44) - - - -

S&P Target Date 2010 TR USD 9.42 8.94 2.61 10.56 14.61 (17.42) 6.40 10.48 3.97 8.88








American Funds 2025 Trgt Date Retire R4 23.25 15.15 (1.30) 12.23 29.39 (34.77) - - - -

S&P Target Date 2025 TR USD 17.03 12.51 (0.28) 13.82 22.03 (27.75) 6.64 14.21 5.28 11.77










As of 09/30/2014. ©2015 Morningstar, Inc. All Rights Reserved.Past performance is not a guarantee of future results. Performance include the reinvestment of income.

6

102

CALENDAR YEAR PERFORMANCE

Target Date Fund Name 2013Total

Return

2012Total

Return

2011Total

Return

2010Total

Return

2009Total

Return

2008Total

Return

2007Total

Return

2006Total

Return

2005Total

Return

2004Total

Return



S&P Target Date 2045 TR USD 23.14 15.15 (2.56) 15.62 26.40 (35.24) 6.97 16.82 - -



S&P Target Date 2050 TR USD 24.13 15.49 (2.87) 15.62 26.40 (35.24) 6.97 - - -

TARGET DATE 2051+

American Funds 2055 Trgt Date Retire R4 26.15 16.36 (2.71) - - - - - - -

S&P Target Date 2055+ TR USD 24.96 15.81 (2.87) 15.62 26.40 (35.24) - - - -


7

103

PERFORMANCE & RANKINGS

Target Date Fund Name TotalRet

3 mo.

%Rank

Cat

TotalRet1 yr

%Rank

Cat

TotalRet3 yr

%Rank

Cat

TotalRet5 yr

%Rank

Cat

TotalRet

10 yr

%Rank

Cat

SinceIncept

RetIncept

Date

RETIREMENT INCOME

S&P Target Date Retirement Income TR USD (0.69) - 5.74 - 7.11 - 6.42 - 4.92 - 4.59 12/29/00


American Funds 2010 Trgt Date Retire R4 (0.66) 13 9.04 3 10.86 20 8.79 8 - - 4.52 02/01/07

S&P Target Date 2010 TR USD (0.95) - 6.74 - 9.05 - 7.49 - 5.52 - 4.57 12/29/00

















8

104

PERFORMANCE & RANKINGS

Target Date Fund Name TotalRet

3 mo.

%Rank

Cat

TotalRet1 yr

%Rank

Cat

TotalRet3 yr

%Rank

Cat

TotalRet5 yr

%Rank

Cat

TotalRet

10 yr

%Rank

Cat

SinceIncept

RetIncept

Date






S&P Target Date 2045 TR USD (2.25) - 10.86 - 17.09 - 11.61 - - - 6.56 05/31/05



S&P Target Date 2050 TR USD (2.35) - 11.17 - 17.54 - 11.78 - - - 6.12 05/31/06

TARGET DATE 2051+

American Funds 2055 Trgt Date Retire R4 (1.13) 7 12.84 8 18.40 15 - - - - 12.45 02/01/10

S&P Target Date 2055+ TR USD (2.41) - 11.41 - 17.90 - 11.98 - - - 4.19 05/31/07

As of 09/30/2014. ©2015 Morningstar, Inc. All Rights Reserved.�The fund companies and share classes displayed in the table above appear based upon advisor request. All of the mutual fund performance information contained in thistable was supplied by Morningstar, Inc. All Right Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to beaccurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

The performance data quoted represents past performance and is not a guarantee or prediction of future results. Investment return and principal value of an investment will fluctuate so that shares or units when redeemed maybe worthless than their original cost. Current performance may be lower or higher than the return data quoted herein. For up-to-date month-end performance information, visit the fund company’s website or call the fund company’s toll freenumber. Total return assumes reinvestment of dividends and capital gains distributions but is not adjusted for sales charges or redemption fees. Performance may reflect the waiver of a portion of the fund’s advisory or administrative feesfor certain periods since the inception date. If fees had not been waived, performance would have been less favorable.

9

105

GROWTH OF 10K2020 Funds

2020 Target date comparison (oldest common inception date)(02/28/2007 - 09/30/2014)

As of 09/30/2014. ©2015 Morningstar, Inc. All Rights Reserved.�Past performance is not a guarantee of future results. Performance include the reinvestment of income.

10

106




11

107




12

108

RISK/RETURN COMPARISON3 YEAR

3 Year risk/return comparison of target date strategiesMonthly return data (net of fees)


13

109

RISK/RETURN COMPARISON5 YEAR

5 Year risk/return comparison of target date strategiesMonthly return data (net of fees)


14

110

RISK/RETURN STATISTICS

Target Date Fund Name 3 yeartotal

returns

3 yearstandarddeviation

3 yearsharpe

ratio

3 yearinformation

ratio

5 yeartotal

returns

5 yearstandarddeviation

5 yearsharpe

ratio

5 yearinformation

ratio


American Funds 2020 Trgt Date Retire R4 14.09 7.17 1.88 1.56 10.20 8.95 1.12 0.68

S&P Target Date 2020 TR USD 12.41 7.52 1.59 - 9.32 9.31 1.00 -








15

111

FEE SUMMARY

Target Date Fund Name Ticker

Netexpense

ratio

Grossexpense

ratio Target Date Fund Name Ticker

Netexpense

ratio

Grossexpense

ratio

TARGET DATE 2000-2010 CATEGORY MEAN EXPENSE: 0.91

American Funds 2010 Trgt Date Retire R4 RDATX 0.70 0.80


American Funds 2015 Trgt Date Retire R4 RDBTX 0.71 0.81


American Funds 2020 Trgt Date Retire R4 RDCTX 0.73 0.83


American Funds 2025 Trgt Date Retire R4 RDDTX 0.75 0.85


American Funds 2030 Trgt Date Retire R4 RDETX 0.75 0.85


American Funds 2035 Trgt Date Retire R4 RDFTX 0.77 0.87


American Funds 2040 Trgt Date Retire R4 RDGTX 0.77 0.87


American Funds 2045 Trgt Date Retire R4 RDHTX 0.77 0.87


American Funds 2050 Trgt Date Retire R4 RDITX 0.78 0.88

TARGET DATE 2051+ CATEGORY MEAN EXPENSE: 0.97

American Funds 2055 Trgt Date Retire R4 RDJTX 0.83 0.93

As of 09/30/2014. ©2015 Morningstar, Inc. All Rights Reserved.The gross expense ratio is the fund's total annual operating costs, expressed as a percentage of the fund's average net assets over a given time period. The net expense ratio is the expense ratio after the application of any waivers orreimbursement. Category mean expense is calculated by using prospectus net expense ratios for all funds within the identified category universe. Please carefully read the fund prospectus for this and other important information.

16

112

TARGET DATE QUADRANTS DEFINED

NW

QUADRANT CHARACTERISTICS:

l Lower equity level at target date

l Higher number of asset classes tend to include a higher number of extended assetclasses

INVESTMENT ORIENTATION:

l Focus on ensuring income replacement at retirement.

l Focus on managing volatility more efficiently.

l Believe higher diversification can potentially create more optimal portfolios.

PLAN PROFILE:

l Seek to maximize participants' savings to retirement

l May have participants who exhibit typical savings behavior

l Prefer target date strategies that seek to minimize downside risk

l Believe broad diversification may improve portfolio outcomes

l Believe diversification can be achieved by extending beyond traditional assetclasses

NE


l Higher equity level at target date

l Higher number of asset classes-tend to include a higher number of extended assetclasses


l Focus on managing longevity risk post-retirement

l Focus on managing growth more efficiently

l Believe higher diversification can potentially create more optimal portfolios

PLAN PROFILE:

l Seek to maximize participants' savings throughout their lifetimes

l May have participants who more closely exhibit optimal behavior

l Prefer target date strategies that seek to maximize upside return potential

l Believe broad diversification may improve portfolio outcomes

l Believe diversification can be achieved by extending beyond traditional assetclasses

SW


l Lower equity level at target date

l Lower number of asset classes-tend to maintain focus on core asset classes


l Focus on ensuring income replacement at retirement

l Focus on managing volatility

l Believe lower diversification can provide appropriate levels of portfolio optimization

PLAN PROFILE:

l Seek to maximize participants' savings to retirement

l May have participants who exhibit typical savings behavior

l Prefer target date strategies seeking to minimize downside risk

l Believe broad diversification may not improve portfolio outcomes

l Believe diversification can be achieved primarily with traditional asset classes, suchas stocks, bonds and cash

SE


l Higher equity level at target date

l Lower number of asset classes-tend to maintain focus on core asset classes


l Focus on managing longevity risk post-retirement

l Focus on managing growth

l Believe lower diversification can provide appropriate levels of portfolio optimization

PLAN PROFILE:

l Seek to maximize participants' savings throughout their lifetimes

l May have participants who more closely exhibit optimal behavior

l Prefer target date strategies seeking to maximize upside return potential

l Believe broad diversification may not improve portfolio outcomes

l Believe diversification can be achieved primarily with traditional asset classes, suchas stocks, bonds and cash

17

113

DISCLOSURES

FUND PERFORMANCE - Performance data is total return, and is preliminary and subject to revision.

©2015 Morningstar, Inc. All Right Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate,

complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

References to specific mutual funds in this report are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations. This report should not be relied on to make investment decisions.

Past performance is not indicative of future returns. Investment returns will fluctuate so that an investor's shares when redeemed may be worth more or less than original cost. Please note current performance may be higher or

lower than the performance data shown.

STANDARD DEVIATION: The standard deviation is a gauge of the variance of a manager's return over its average or mean. Statistically, it is the square root of the variance. Because it measures total variation of the return,

standard deviation is a measure of total risk, unlike beta, which measures only market risk. Investors use the standard deviation to try to predict the range of returns that is most likely for a given investment. When a portfolio has a

high standard deviation, the predicted range of performance is wide, implying greater volatility. The converse, a low standard deviation, implies that the portfolio will exhibit lower volatility.

SHARPE RATIO: Measures a manager's excess return over the risk-free rate of return (normally the cash return), divided by the standard deviation. It is a statistical measure that incorporates return and risk into a single number.

The ratio describes how much excess return you are receiving for the extra volatility that you endure for holding a riskier asset. The higher the Sharpe Ratio, the better the portfolio's historical risk-adjusted performance.

INFORMATION RATIO: A risk-adjusted performance measure defined as excess return divided by tracking error. Information ratio is a special version of the Sharpe Ratio where the benchmark does not have to be the risk-free

rate. Since this ratio considers the annualized standard deviation of both series (measures of risks inherent in owning either a portfolio or the benchmark), the ratio shows the risk-adjusted excess return of the portfolio over the

benchmark. The higher the Information Ratio, the higher the excess return of a portfolio given the amount of risk involved.

Copyright ©2015 JPMorgan Chase & Co., All rights reserved.

U.S. Patents No. 8,255,308; 8,386,361 and patent(s) pending for Target Date Compass

18

114

Style Fund Name Fund Exp Ticker

1 Equity Precious Metals Tocqueville Gold 1.35% TGLDX 30.17 -10.98% -2.67% -2.67% -2.67% -48.26% -22.83% -9.92%

2 Natural Resources Dreyfus Natural Resources A 1.35% DNLAX 19.45 -5.97% -3.32% -3.32% -3.32% 18.33% 6.05% 5.40%

3 Real Estate Cohen & Steers Realty Shares 0.97% CSRSX 16.72 14.68% 30.18% 30.18% 30.18% 3.09% 15.80% 15.96%

4 Technology Ivy Science & Technology Y 1.24% WSTYX 15.52 1.73% 4.34% 4.34% 4.34% 52.08% 26.19% 16.41%

5 Diversified Emerging Mkts Oppenheimer Developing Markets A 1.32% ODMAX 17.93 -6.74% -4.81% -4.81% -4.81% 8.35% 7.62% 5.33%

6 Foreign Large Growth Vanguard International Growth Adm 0.34% VWILX 18.00 -2.93% -5.51% -5.51% -5.51% 23.12% 11.82% 6.95%

7 Foreign Large Blend MFS® International Value R3**** 1.07% MINGX 12.98 0.25% 1.30% 1.30% 1.30% 27.37% 14.31% 9.84%

8 World Stock American Funds New Perspective R4 0.80% RNPEX 14.15 1.73% 3.18% 3.18% 3.18% 26.79% 16.47% 10.47%

9 Small Growth MFS® New Discovery R4 (Cls 1/12/15) 1.03% MNDJX 18.56 4.02% -7.29% -7.29% -7.29% 41.18% 16.63% 14.16%

10 Small Growth Franklin Small Cap Growth Adv (New 1/12/15) 0.91% FSSAX 17.45 7.79% 3.82% 3.82% 3.82% 55.05% 21.25% 19.02%

11 Small Blend T. Rowe Price Small-Cap Value Adv* 1.24% PASVX 16.45 6.78% -0.16% -0.16% -0.16% 32.40% 15.80% 13.98%

12 Small Value Victory Small Company Opportunity I 0.99% VSOIX 16.31 8.98% 6.80% 6.80% 6.80% 33.39% 17.04% 14.71%

13 Mid-Cap Growth AllianceBern Discovery Growth A 1.04% CHCLX 17.96 4.20% 2.76% 2.76% 2.76% 38.46% 17.72% 18.65%

14 Mid-Cap Growth Prudential Jennison Mid Cap Growth A 1.05% PEEAX 13.55 6.50% 9.16% 9.16% 9.16% 27.67% 17.33% 14.62%

15 Mid-Cap Blend Dreyfus Opportunistic Midcap Value I 0.90% DVLIX 18.25 7.18% 9.54% 9.54% 9.54% 39.95% 22.39% 16.77%

16 Mid-Cap Blend Dreyfus MidCap Index 0.50% PESPX 15.74 6.25% 9.37% 9.37% 9.37% 32.86% 19.42% 15.99%

17 Mid-Cap Value Hotchkis and Wiley Value Opps Instl 1.00% HWAIX 17.23 2.68% 10.09% 10.09% 10.09% 37.73% 25.24% 19.73%

18 Mid-Cap Value Victory Established Value A 1.05% VETAX 14.18 7.69% 11.90% 11.90% 11.90% 34.43% 19.03% 15.44%

19 Mid-Cap Value Fidelity® Low-Priced Stock** 0.82% FLPSX 13.68 4.18% 7.65% 7.65% 7.65% 34.31% 19.66% 15.63%

20 Large Growth JPMorgan Large Cap Growth A 1.05% OLGAX 14.62 4.68% 10.64% 10.64% 10.64% 32.53% 17.93% 15.56%

21 Large Growth T. Rowe Price New America Growth 0.81% PRWAX 14.34 4.36% 9.44% 9.44% 9.44% 37.73% 19.62% 15.26%

22 Large Growth Fidelity Advisor® New Insights A 0.94% FNIAX 12.43 2.88% 9.20% 9.20% 9.20% 32.36% 18.75% 13.98%

23 Large Blend Gabelli Asset AAA 1.35% GABAX 13.88 4.03% 4.89% 4.89% 4.89% 32.37% 17.22% 14.57%

24 Large Blend Oakmark I 0.95% OAKMX 13.80 3.64% 11.51% 11.51% 11.51% 37.29% 22.80% 16.17%

Std Dev 5 Yr

Orange County Water District401(a) Investment Performance through December 31, 2014

Ranked by Style

Tot Ret Annlzd

3 Yr

Tot Ret Annlzd

5 YrAnnual

Ret 2013Annual

Ret 2014Tot Ret 12 Mo

Tot Ret 3 Mo

YTD Dec-14

120

Style Fund Name Fund Exp Ticker

Std Dev 5 Yr

Tot Ret Annlzd

3 Yr

Tot Ret Annlzd

5 YrAnnual

Ret 2013Annual

Ret 2014Tot Ret 12 Mo

Tot Ret 3 Mo

YTD Dec-14

25 Large Blend Vanguard 500 Index Admiral*** 0.05% VFIAX 13.00 4.92% 13.64% 13.64% 13.64% 32.33% 20.37% 15.42%

26 Large Value Putnam Equity Income A 1.02% PEYAX 14.25 4.65% 12.44% 12.44% 12.44% 31.63% 20.77% 15.03%

27 Moderate Allocation American Funds American Balanced R4 0.65% RLBEX 8.79 3.18% 8.86% 8.86% 8.86% 21.68% 14.77% 12.14%

28 Target Date 2046-2050 American Funds 2050 Trgt Date Retire R4 0.79% RDITX 11.97 1.93% 6.65% 6.65% 6.65% 26.15% 16.13% 11.41%

29 Target Date 2036-2040 American Funds 2040 Trgt Date Retire R4 0.78% RDGTX 11.97 1.89% 6.60% 6.60% 6.60% 26.16% 16.12% 11.42%

30 Target Date 2026-2030 American Funds 2030 Trgt Date Retire R4 0.77% RDETX 11.51 1.91% 6.69% 6.69% 6.69% 25.12% 15.70% 11.31%

31 Target Date 2016-2020 American Funds 2020 Trgt Date Retire R4 0.73% RDCTX 8.82 1.64% 6.35% 6.35% 6.35% 18.28% 12.32% 9.62%

32 Target Date 2000-2010 American Funds 2010 Trgt Date Retire R4 0.71% RDATX 6.25 1.56% 6.37% 6.37% 6.37% 12.09% 9.52% 8.26%

33 Inflation-Protected Bond Columbia Infl Protected Secs A 0.85% APSAX 5.17 -1.31% 1.94% 1.94% 1.94% -8.70% 0.01% 3.34%

34 Intermediate-Term Bond PIMCO Total Return A (Cls 1/12/15) 0.85% PTTAX 3.58 1.22% 4.29% 4.29% 4.29% -2.30% 3.85% 4.72%

35 Intermediate-Term Bond Putnam Income A (New 1/12/15) 0.87% PINCX 2.91 0.12% 5.13% 5.13% 5.13% 2.06% 5.87% 6.30%

36 Intermediate-Term Bond Fidelity Spartan® US Bond Idx Investor 0.22% FBIDX 2.78 1.79% 5.90% 5.90% 5.90% -2.36% 2.47% 4.25%

37 Safe Harbor Prudential Guaranteed Income Fund 0.10% n/a - 2.15% 2.65% n/a n/a

This information was obtained from Morningstar 01/2015. Safe Harbor is updated through Decmeber 2014. We believe this information to be reliable, but do not guarantee its accuracy.

Current Rate 1.95%

****MFS International Value R3, MINGX had a style drift from Foreign Large Value to Foreign Large Blend. The fund and ticker have not changed.***As of 10/24/2014 the Vanguard 500 Index Signal (VIFSX) fund converted to the Vanguard 500 Index Admiral (VFIAX) fund.

Short Term Redemption Fees: *1.00% if < 90 days, **1.50% if < 90 days

Speak to our licensed plan consultants at the Sutherland Retirement Group of Wells Fargo Advisors at 877-524-4015

Inquire at 877-PRU-2100 or Access Your Account Online at www.prudential.com/online/retirement

121

457 Plan Red Flag Review

Presented By: January 27, 2015 Scott T. Sutherland, Senior Vice President – Investments Rachel D. Nolan, Financial Consultant Jacquelyn M. Hylton, Client Associate

122

OCWD 457 - Mid Blend - Red Flag Review Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Principal MidCap S&P 400 Index R4

Scout Mid Cap

Morningstar Mid-Cap Blend

Market Benchmark:Russell Midcap

Capital Market Line

Principal MidCap S&P 400 Index R4 $414,220Scout Mid Cap $269,711a/o 1/9/2014

RedFlagged10/2014



Ret

urn

0%

5%

10%

15%

20%


Principal MidCap S&P 400 Index R4

Scout Mid Cap



Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

YTD 2013 2012 2011 2010

Principal MidCap S&P 400 Index R4Scout Mid CapMorningstar Mid-Cap BlendRussell Midcap





Small

-1

0

1

Large

Value -1 0 1 Growth

Principal MidCap S&P 400 Index R4Scout Mid CapMorningstar Mid-Cap BlendRussell MidcapRussell Generic Corners


OCWD 457 - Mid Blend - Red Flag Review Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

1%

2%

3%

4%

5%

6%

7%

8%


Scout Mid Cap


Capital Market Line



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%


Scout Mid Cap


Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

YTD 2013 2012 2011 2010

Scout Mid CapRussell Midcap





Small

-1

0

1

Large

Value -1 0 1 Growth

Scout Mid CapRussell MidcapRussell Generic Corners


OCWD 457 - Mid Blend - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%

30%


Principal MidCap S&P 400 Index R4 (0.55%, 3.8 yrs.)

Scout Mid Cap (1.02%, 8.3 yrs.)


Fidelity Advisor® Leveraged Co StkInstl (0.82%, 11.5 yrs.)

Oppenheimer Main Street Mid Cap Y (0.86%, 5.7 yrs.)

Touchstone Mid Cap A (1.25%, 3.1 yrs.)

JPMorgan Intrepid Mid Cap Select (0.93%, 6.1 yrs.)

Putnam Equity Spectrum Y (1.11%, 5.7 yrs.)

American Century Legacy Multi Cap Adv (1.40%, 7.7 yrs.)

Putnam Capital Spectrum Y (1.02%, 5.7 yrs.)


Capital Market Line

Principal MidCap S&P 400 Index R4 $414,220Scout Mid Cap $269,711a/o 1/9/2014

RedFlagged10/2014Fidelity Advisor Leveraged Co StkInslt has

a minimum initial purchase of $10k.



Ret

urn

0%

5%

10%

15%

20%

25%


Principal MidCap S&P 400 Index R4 (35 bps)

Scout Mid Cap (40 bps)


Fidelity Advisor® Leveraged Co StkInstl (25 bps)

Oppenheimer Main Street Mid Cap Y (30 bps)

Touchstone Mid Cap A (35 bps)

JPMorgan Intrepid Mid Cap Select (30 bps)

Putnam Equity Spectrum Y (25 bps)

American Century Legacy Multi Cap Adv (60 bps)

Putnam Capital Spectrum Y (25 bps)


Capital Market Line


Ret

urn

-10%

0%

10%

20%

30%

40%

50%

YTD 2013 2012 2011 2010

Principal MidCap S&P 400 Index R4Scout Mid CapMorningstar Mid-Cap BlendFidelity Advisor® Leveraged Co StkInstlOppenheimer Main Street Mid Cap YTouchstone Mid Cap AJPMorgan Intrepid Mid Cap SelectPutnam Equity Spectrum YAmerican Century Legacy Multi Cap AdvPutnam Capital Spectrum YRussell Midcap





Small

-1

0

1

Large

Value -1 0 1 Growth

Principal MidCap S&P 400 Index R4Scout Mid CapMorningstar Mid-Cap BlendFidelity Advisor® Leveraged Co StkInstlOppenheimer Main Street Mid Cap YTouchstone Mid Cap AJPMorgan Intrepid Mid Cap SelectPutnam Equity Spectrum YAmerican Century Legacy Multi Cap AdvPutnam Capital Spectrum YRussell MidcapRussell Generic Corners


OCWD 457 - Mid Blend - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsUpside Downside

Single Computation


psid

e%

85

90

95

100

105

110

Downside%50 60 70 80 90 100 110 120 130

Principal MidCap S&P 400 Index R4Scout Mid CapMorningstar Mid-Cap BlendFidelity Advisor® Leveraged Co StkInstlOppenheimer Main Street Mid Cap YTouchstone Mid Cap AJPMorgan Intrepid Mid Cap SelectPutnam Equity Spectrum YAmerican Century Legacy Multi Cap AdvPutnam Capital Spectrum YRussell Midcap

Manager vs Morningstar Mid-Cap Blend: ReturnDecember 2009 - November 2014 (not annualized if less than 1 year)

Ret

urn

0

5

10

15

20

25

30


Principal MidCap S&P 400 Index R4Scout Mid CapMorningstar Mid-Cap BlendFidelity Advisor® Leveraged Co StkInstlOppenheimer Main Street Mid Cap YTouchstone Mid Cap AJPMorgan Intrepid Mid Cap SelectPutnam Equity Spectrum YAmerican Century Legacy Multi Cap AdvPutnam Capital Spectrum YRussell Midcap5th to 25th Percentile25th Percentile to MedianMedian to 75th Percentile75th to 95th Percentile


OCWD 457 - Large Growth - Red Flag Review Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Alger Spectra I


Delaware Select Growth Instl



Capital Market Line

Alger Spectra I $113,795T. Rowe Price New America Growth $661,219Delaware Select Growth Instl $834,635a/o 1/9/2014

RedFlagged10/2014



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%


Alger Spectra I





Capital Market Line


Ret

urn

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

YTD 2013 2012 2011 2010

Alger Spectra IT. Rowe Price New America GrowthDelaware Select Growth InstlMorningstar Large GrowthRussell 1000 Growth





Small

-1

0

1

Large

Value -1 0 1 Growth

Alger Spectra IT. Rowe Price New America GrowthDelaware Select Growth InstlMorningstar Large GrowthRussell 1000 GrowthRussell Generic Corners


OCWD 457 - Large Growth - Red Flag Review Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

2%

4%

6%

8%

10%




Capital Market Line



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%




Capital Market Line


Ret

urn

0%

5%

10%

15%

20%

25%

30%

35%

YTD 2013 2012 2011 2010

Delaware Select Growth InstlRussell 1000 Growth





Small

-1

0

1

Large

Value -1 0 1 Growth

Delaware Select Growth InstlRussell 1000 GrowthRussell Generic Corners


OCWD 457 - Large Growth - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

5%

10%

15%

20%

25%


Alger Spectra I (1.28%, 10.3 yrs.)

T. Rowe Price New America Growth (0.81%, 1.7 yrs.)

Delaware Select Growth Instl (1.00%, 9.7 yrs.)


Putnam Growth Opportunities Y (0.85%, 6.0 yrs.)

Columbia Large Cap Growth R4 (0.89%, 9.4 yrs.)

Deutsche Capital Growth S (0.75%, 6.0 yrs.)

BlackRock Large Cap Growth Instl (0.97%, 4.3 yrs.)

Goldman Sachs Lg Cap Gr Insights IR (0.71%, 3.3 yrs.)

Fidelity Advisor® New Insights I (0.68%, 11.5 yrs.)


Capital Market Line

Alger Spectra I $113,795T. Rowe Price New America Growth $661,219Delaware Select Growth Instl $834,635a/o 1/9/2014

RedFlagged10/2014



Ret

urn

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%


Alger Spectra I (50 bps)

T. Rowe Price New America Growth (15 bps)

Delaware Select Growth Instl (25 bps)


Putnam Growth Opportunities Y (25 bps)

Columbia Large Cap Growth R4 (25 bps)

Deutsche Capital Growth S (25 bps)

BlackRock Large Cap Growth Instl (25 bps)

Goldman Sachs Lg Cap Gr Insights IR (30 bps)

Fidelity Advisor® New Insights I(25 bps)


Capital Market Line


Ret

urn

-10%

0%

10%

20%

30%

40%

YTD 2013 2012 2011 2010

Alger Spectra IT. Rowe Price New America GrowthDelaware Select Growth InstlMorningstar Large GrowthPutnam Growth Opportunities YColumbia Large Cap Growth R4Deutsche Capital Growth SBlackRock Large Cap Growth InstlGoldman Sachs Lg Cap Gr Insights IRFidelity Advisor® New Insights IRussell 1000 Growth





Small

-1

0

1

Large

Value -1 0 1 Growth

Alger Spectra IT. Rowe Price New America GrowthDelaware Select Growth InstlMorningstar Large GrowthPutnam Growth Opportunities YColumbia Large Cap Growth R4Deutsche Capital Growth SBlackRock Large Cap Growth InstlGoldman Sachs Lg Cap Gr Insights IRFidelity Advisor® New Insights IRussell 1000 GrowthRussell Generic Corners


OCWD 457 - Large Growth - Alternatives Zephyr StyleADVISOR: Wells Fargo AdvisorsUpside Downside

Single Computation


psid

e%

85

90

95

100

105

110

115

Downside%90 95 100 105 110 115 120

Alger Spectra IT. Rowe Price New America GrowthDelaware Select Growth InstlMorningstar Large GrowthPutnam Growth Opportunities YColumbia Large Cap Growth R4Deutsche Capital Growth SBlackRock Large Cap Growth InstlGoldman Sachs Lg Cap Gr Insights IRFidelity Advisor® New Insights IRussell 1000 Growth

Manager vs Morningstar Large Growth: ReturnDecember 2009 - November 2014 (not annualized if less than 1 year)

Ret

urn

0

5

10

15

20

25

30


Alger Spectra IT. Rowe Price New America GrowthDelaware Select Growth InstlMorningstar Large GrowthPutnam Growth Opportunities YColumbia Large Cap Growth R4Deutsche Capital Growth SBlackRock Large Cap Growth InstlGoldman Sachs Lg Cap Gr Insights IRFidelity Advisor® New Insights IRussell 1000 Growth5th to 25th Percentile25th Percentile to MedianMedian to 75th Percentile75th to 95th Percentile


OCWD 457 - Intermediate Term Bond - Red Flag ReviewZephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

1%

2%

3%

4%

5%


JPMorgan Total Return A



Capital Market Line

JPMorgan Total Return A $277,423Fidelity Spartan US Bond Idx Inv $252,993a/o 1/9/15

RedFlagged10/2014



Ret

urn

0%

1%

2%

3%

4%

5%

6%


JPMorgan Total Return A



Capital Market Line


Ret

urn

-2%

0%

2%

4%

6%

8%

10%

YTD 2013 2012 2011 2010

JPMorgan Total Return AFidelity Spartan® US Bond Idx InvestorBarclays U.S. Aggregate



sbc2a13 sbc2a10p

sbc3b13 sbc3b10p

Lo_Qual

-1

0

1

Hi_Qual

Short -1 0 1 Long

JPMorgan Total Return AFidelity Spartan® US Bond Idx InvestorBarclays U.S. AggregateCitigroup Corporate Bond Indexes


OCWD 457 - Intermediate Term Bond - Red Flag ReviewZephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

0.5%

1%

1.5%

2%

Standard Deviation0% 0.2% 0.4% 0.6% 0.8% 1% 1.2% 1.4% 1.6% 1.8%



Capital Market Line



Ret

urn

0%

1%

2%

3%

4%

5%

6%

Standard Deviation0% 0.5% 1% 1.5% 2% 2.5%



Capital Market Line


Ret

urn

-2%

0%

2%

4%

6%

8%

YTD 2013 2012 2011 2010

Fidelity Spartan® US Bond Idx InvestorBarclays U.S. Aggregate



sbc2a13 sbc2a10p

sbc3b13 sbc3b10p

Lo_Qual

-1

0

1

Hi_Qual

Short -1 0 1 Long

Fidelity Spartan® US Bond Idx InvestorBarclays U.S. AggregateCitigroup Corporate Bond Indexes


OCWD 457 - Intermediate Term Bond - AlternativesZephyr StyleADVISOR: Wells Fargo AdvisorsManager Risk/Return

Single Computation


etur

n

0%

1%

2%

3%

4%

5%

6%

7%


JPMorgan Total Return A (0.70%, 6.5 yrs.)

Fidelity Spartan® US Bond Idx Investor (0.22%, 2.3 yrs.)

Putnam Income A (0.87%, 9.8 yrs.)

Delaware Diversified Income A (0.90%, 13.8 yrs.)

Franklin Total Return A (0.89%, 16.3 yrs.)

Hartford Total Return Bond R4 (0.85%, 2.8 yrs.)

BlackRock Total Return Inv A (0.79%, 4.3 yrs.)

Fidelity Advisorr Total Bond T (0.78%, 10.0 yrs.)

Vanguard Total Bond Market Index Adm (0.08%, 1.8 yrs.)


Capital Market Line

JPMorgan Total Return A $277,423Fidelity Spartan US Bond Idx Inv $252,993a/o 1/9/15

RedFlagged10/2014



Ret

urn

0%

1%

2%

3%

4%

5%

6%

7%


JPMorgan Total Return A (55 bps)

Fidelity Spartan® US Bond Idx Investor (0 bps)

Putnam Income A (55 bps)

Delaware Diversified Income A (65 bps)

Franklin Total Return A (25 bps + $12/head)

Hartford Total Return Bond R4 (50 bps)

BlackRock Total Return Inv A

Fidelity Advisorr Total Bond T (50 bps)

Vanguard Total Bond Market Index Adm


Capital Market Line


Ret

urn

-2%

0%

2%

4%

6%

8%

10%

12%

YTD 2013 2012 2011 2010

JPMorgan Total Return AFidelity Spartan® US Bond Idx InvestorPutnam Income ADelaware Diversified Income AFranklin Total Return AHartford Total Return Bond R4BlackRock Total Return Inv AFidelity Advisorr Total Bond TVanguard Total Bond Market Index AdmBarclays U.S. Aggregate



sbc2a13 sbc2a10p

sbc3b13 sbc3b10p

Lo_Qual

-1

0

1

Hi_Qual

Short -1 0 1 Long

JPMorgan Total Return AFidelity Spartan® US Bond Idx InvestorPutnam Income ADelaware Diversified Income AFranklin Total Return AHartford Total Return Bond R4BlackRock Total Return Inv AFidelity Advisorr Total Bond TVanguard Total Bond Market Index AdmBarclays U.S. AggregateCitigroup Corporate Bond Indexes


OCWD 457 - Intermediate Term Bond - AlternativesZephyr StyleADVISOR: Wells Fargo AdvisorsUpside Downside

Single Computation


psid

e%

100

105

110

115

120

125

Downside%20 40 60 80 100 120

JPMorgan Total Return AFidelity Spartan® US Bond Idx InvestorPutnam Income ADelaware Diversified Income AFranklin Total Return AHartford Total Return Bond R4BlackRock Total Return Inv AFidelity Advisorr Total Bond TVanguard Total Bond Market Index AdmBarclays U.S. Aggregate

Manager vs Morningstar Intermediate-Term Bond: ReturnDecember 2009 - November 2014 (not annualized if less than 1 year)

Ret

urn

0

1

2

3

4

5

6

7

8


JPMorgan Total Return AFidelity Spartan® US Bond Idx InvestorPutnam Income ADelaware Diversified Income AFranklin Total Return AHartford Total Return Bond R4BlackRock Total Return Inv AFidelity Advisorr Total Bond TVanguard Total Bond Market Index AdmBarclays U.S. Aggregate5th to 25th Percentile25th Percentile to MedianMedian to 75th Percentile75th to 95th Percentile


Important Disclosures

This performance presented is past performance which is not a guarantee of future results; current

performance may be lower or higher than the performance quoted. The investment return and principal

value will fluctuate, and shares, when sold, may be worth more or less than their original cost.

Other share classes with different sales charges are available. The return of each class will vary,

depending upon its applicable sales charge.

Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges and

expenses carefully before investing. The prospectus, and, if available, the summary prospectus, which

contains this and other information, can be obtained by calling your financial advisor. Read the

prospectus and, if available, the summary prospectus carefully before you invest.

190

Important Disclosures Standard deviation, a widely accepted measure of investment risk, is a statistical indication of a stock or portfolio’s historical volatility. A higher number indicates greater volatility and potential for loss. The prices of mid-cap company stocks are generally more volatile than large company stocks. They often involve higher risks because smaller companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions. Wells Fargo Advisors, LLC (WFA) is a non-bank affiliate of Wells Fargo & Company. Wells Fargo Funds Management, LLC is the investment adviser on each of the mutual funds within the Wells Fargo Advantage family of funds. WFA, Wells Fargo Funds Management, LLC and Wells Fargo Advantage family of funds are all affiliated companies. StyleADVISOR is not meant to replace a thorough analysis by a consultant. You and your consultant best understand the overall goals of your investment program, and how a particular portfolio may or may not help you accomplish these goals. StyleADVISOR is meant to alert you to situations where you and your consultant may wish to consider generic portfolios. Investment and insurance products: NOT FDIC-Insured NO Bank Guarantee MAY Lose Value Wells Fargo Advisors is the trade name used by two separate registered broker-dealers: Wells Fargo Advisors, LLC, and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company. 0410-0402B 08/10

191

Index Descriptions The indices below are presented to provide you with an understanding of their historic long-term performance and are not presented to illustrate the performance of any security. Investors cannot directly purchase any index. The Russell 1000 Index measures the performance of the 1,000 largest securities in the Russell 3000 Index. This large capitalization (market-oriented) index represents the universe of stocks from which most active money managers typically select. The Russell 1000 is highly correlated with the S&P 500 Index. The Russell 3000 Index is composed of the 3,000 largest U.S. securities, as determined by total market capitalization. The Russell Midcap™ Growth Index measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000® Growth Index. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000® Index. The Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index consists of the 1,000 largest securities in the Russell 3000 Index. The Russell 3000 Index is composed of the 3,000 largest U.S. securities, as determined by total market capitalization. The Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index consists of the 1,000 largest securities in the Russell 3000 Index. The Russell 3000 Index is composed of the 3,000 largest U.S. securities, as determined by total market capitalization.

192



Program/ Line Item No. N/A From: Mike Markus General Counsel Approval: Yes Engineers/Feasibility Report: N/A Staff Contact: S. Dosier CEQA Compliance: N/A Subject: GUARANTEED INCOME FUND INTEREST RATES SUMMARY The Guaranteed Income Fund (GIF) is contained within the fund portfolios for both the 401(a) and 457(b) Retirement Plans with Prudential Retirement. The GIF is the stable value investment option for each plan. Every 6 months, Prudential calls out the guaranteed interest rate for the GIF. The interest rate for the period of January 1, 2015 through June 30, 2015 is 1.95%. Attachment(s):

GIF Interest Rate Letter for the 401(a) Money Purchase Plan GIF Interest Rate Letter for the 457(b) Deferred Compensation Plan

RECOMMENDATION Informational.

~ Prudential December, 2014 Bring Your Challenges'"

r~ [E rm fE Q \Yl [E m1 WJ DEC 15 2014 ~~ 002045

Ms. Stephanie Dosier ORANGE COUNTY WATER DISTRICT 18700 Ward Street Fountain Valley CA 92708

Defined Contribution Plan Sponsor Interest Rate Notification

Contract: 040463 001

By

Plan: 820342 MONEY PURCHASE PLAN FOR EMPL. OF ORANGE COUNTY WATER DISTRICT

Prudemial Retirement Insurance and Annuity Company recently declared the guaranteed interest crediting rates payable under the Guaranteed Income Fund.

• The net interest crediting rate will be 1.95%.

• This rate is net of your contract's 0.1 Oo/o asset charge.

• This rate will be in effect from 11112015 through 6/30/2015.

• The rare is guaranteed not to change during that rime.

It is important to remember the guaranteed imerest rare represents a blending of interest rate conditions over time, rather than a single current ("spot") rate. As a result, crediting rates will tend to lag changes (both increases and decreases) in spot rates. This provides reduced interest rate volatility and a desirable balance between rate responsiveness and stability.

During all market cycles, stable value products such as this may provide desirable benefits such as:

• Security through invesrmem diversification; • Predictability through crediting rates which are announced in advance and guaranteed; • Stabili~y via a full guaramee of principal regardless of marker conditions; and • Liquidiry for participant transfers and benefits.

We've included a sample announcement you may customize and disrribure ro your plan participants.

We appreciate your business and look forward to our continued partnership in meeting all of your retirement plan needs.

Sincerely,

Prudenrial Retirement

Please See Next Page for Important Disclosure Information

OAOIIL'l O'll'l'lA'l 1 lA

Sample Participant Announcement

December, 2014

To Participants of MONEY PURCHASE PLAN FOR EMPL. OF ORANGE COUNTY W/1TER DISTRICT:

The net interest crediting rate for the Guaranteed Income Fund is 1.95%. This rate is net of an asset charge ofO.lO%.

This net rate will be credit to funds invested in the Guaranteed Income Fund beginning 1 I 1/20 15 and will remain in effect through 6/30/2015. The interest crediting rate is guaranteed not to change during that time.

While no one can predict the direction that interest rates will take in the future, investing a portion of your retirement savings in fixed-rate investments may be an appropriate way to diversify your retirement savings

The interest crediting rate information as well as any applicable fees for other plan investments are available by calling the toll-free number shown on your statement.

The Guaranteed Income Fund (GIF) is a group annuity product issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Harttord, CT 06103. Amounts contributed to the contract are deposited in PRLA..C's general account. Payment obligations and the fulfillment of any gnarantees specified in the group annuity contract are insurance claims supported by the full faith and credit of PRIAC. PRIAC periodically resets the interest rate credited on contract balances, subject to a minimum rate specified in the group annuity contract. Past interest rates are not indicative of future rates. This product is neither a mutual timd nor a bank product. The obligations of PRIAC are not insured by the FDIC or any other federal governmental agency. Contract torm # GA-2020-lA-0805 or state variation thereof.

Prudential Retirement is compensated in connecrion with this product when investment returns exceed the interest credited on contract balances. Prudential Retirement may earn fee revenue in addition to the toregoing compensation if your plan has agreed to pay contract charges, which are sometimes paid in respect of plan and participant recordkeeping and distribution services. For some plans, Prudential Retirement uses a portion of its aggregate compensation to satisfy the plan's request tor allowances and for payments to defray plan expenses. If Prudential Retirement's aggregate compensation from this product and from other plan investment products exceeds the costs of servicing your plan, Prudential Retirement earns a profit; otherwise we incur a loss.

Frequent exchanging between plan investment options may harm long-term investors. Your plan or rhe plan's investment funds may have provisions to deter exchanges that may be abusive. These policies may require us to modify, restrict or suspend purchase or exchange privileges and/or impose redemption fees.

© 2014. Prudential. the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial. Inc., and its related entities, registered in many jurisdictions worldwide.

0270117-00001-00

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~ Prudential December, 2014 Bring Your Challenges"

lfiD IHGJ fE U\YliE lfll WJ DEC 15 2014 ~I By= lib 001083

Ms. Stephanie Dosier ORANGE COUNTY WATER DISTRICT 18700 Ward Street Fountain Valley CA 92708

Defined Contribution Plan Sponsor Interest Rate Notification

Contract: 041733 001 Plan: 720444 ORANGE COUNTY WATER DISTRICT 457(b) PLAN

Prudential Retirement Insurance and Annuity Company recently declared the guaranteed interest crediting rates payable under the Gu:uanreed Income Fund.

•

• •

•

The net interest crediting rate will be 1.95% .

This rate is net of your contract's 0.10% asset charge .

This rare will be in effect from Ill /2015 through 6/30/2015 .

The rare is guaranteed not to change during that time .

It is important to remember the guaranreed interest rate represents a blending of interest rate conditions over time, rather than a single current ("spot") rate. As a result, crediting rates will rend to lag changes (both increases and decreases) in spot rates. This provides reduced interest rate volatility and a desirable balance between rate responsiveness and stability.

During all market cycles, stable value products such as this may provide desirable benefits such as:

• Security through investment diversification; • Predictability through crediting rates which are announced in advance and guaranteed; • Stability via a full guarantee of principal regardless of market conditions; and • Liquidity for participant transfers and benefits.

We've included a sample announcement you may customize and distribute w your plan participants.

We appreciate your business and look forward to our conrinued partnership in meeting all of your retirement plan needs.

Sincerely,

Prudential Retiremenr

Please See Next Page for Important Disclosure Information

nA17~~ 7?nAAA 1 lA

Sample Participant Announcement

December, 2014

To Participants of ORANGE COUNTY WATER DISTRICT 457(b) PLAN:

The net interest crediting rate for the Guaranteed Income Fund is 1.95%. This rate is net of an asset charge of0.10%.

This net rate will be credit to funds invested in the Guaranteed Income Fund beginning 1/1/20 15 and will remain in effect through 6/30/2015. The interest crediting rate is guaranteed not to change during that time.

While no one can predict the direction that interest rates will take in the future, investing a portion of your retirement savings in fixed-rate investments may be an appropriate way to diversify your retirement savings

The interest crediting rate information as well as any applicable fees for other plan investments are available by calling the toll-free number shown on your statement.

The Guaranteed Income Fund (GIF) is a group annuity product issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT 06103. Amounts contributed to rhe contract are deposited in PRIAC's general account. Payment obligations and rhe fulfillment of any guarantees specified in rhe group annuity contract are insurance claims supported by rhe full faith and credit of PRIAC. PRIAC periodically resets rhe interest rate credited on contract balances, subject to a minimum rate specified in the group annuity contract. Past interest rates are nor indicative of future rates. This product is neither a mutual fund nor a bank product. The obligations of PRIAC are nor insured by rhe FDIC or any other federal governmental agency. Conrracr form# GA-2020-IA-0805 or state variation thereof.

Prudenrial Retirement is compensated in connection with this product when investment returns exceed the inrerest credited on con traer balances. Prudenrial Retirement may earn fee revenue in addition to the foregoing compensation if your plan has agreed ro pay contract charges, which are sometimes paid in respect of plan and participant recordkeeping and distribution services. For some plans, Prudential Retirement uses a portion of irs aggregate compensation ro satisfY rhe plan's request tor allowances and for payments to defray _plan expenses. If Prudential Retirement's aggregate compensation from rhis product and hom other plan investment products exceeds the costs ot servicing your plan, Prudential Retirement earns a profit; otherwise we incur a loss.

Frequent exchanging between plan investment options may harm long-term investors. Your plan or the plan's investment funds may have provisions to deter exchanges that may be abusive. These policies may require us to modifY, restrict or suspend purchase or exchange privileges and/or impose redemption fees.

© 2014. Prudential, rhe Prudcmiallogo, the Rock symbol and Bring Your Challenges are service marb of Prudential Financial. Inc.. and irs related entities, registered in many jurisdictions worldwide.

0270117-0000 l-00

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AGENDA MEETING OF THE RETIREMENT COMMITTEE WITH …Jan 27, 2015 · - 1 - agenda meeting of the...

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