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Gwinnett County, Georgia

Investment Committee of the RPMC

September 14, 2018 9:30 a.m.

Second Floor, Financial Services - Dogwood Conference Room

Agenda

Call to order

1. Approval of Agenda* RD 2. Approval of Investment Committee Minutes* RD

August 10, 2018 Meeting 3. Panel Discussion

a. Columbia Threadneedle b. Barrow Hanley c. TCW d. Fairpointe e. Atlanta Capital f. Vaughan Nelson g. The London Company

4. Adjournment * RD

*Action Items

Gwinnett County, Georgia Investment Committee of the RPMC

Monthly Meeting Minutes August 10, 2018 9:30 a.m.

Gwinnett Justice and Administration Center – Dogwood Conference Room Unofficial Minutes

Members Present: Mike Ludwiczak, Buffy Alexzulian, Jim Frihart, Raechell Dickinson

Staff Present: Michael Poole, Kelly Ellison, Shawn Cooper

Others Present: UBS – Earle Dodd and Scott Olson; Empower Retirement – Fred Minot

Mike Ludwiczak called the meeting to order at 9:31 a.m.

Approval of Agenda Action: Motion to Approve: Buffy Alexzulian; Second: Raechell Dickinson, Vote: (4-0).

Approval of Investment Committee Minutes Regular Meeting: July 13, 2018 Action: Motion to Approve: Raechell Dickinson; Second: Jim Frihart; Vote: (4-0).

UBS 2nd Quarter Performance Reports Earle Dodd and Scott Olson reviewed the following reports.

a). UBS House View Investment Strategy Guide b). 2nd Quarter 2018 DB Performance Report c). Manager Status and Watch List d). 2nd Quarter 2018 DC Performance Report

Mike Ludwiczak left the meeting @ 9:58am. Empower Retirement 2nd Quarter Reports Fred Minot reviewed the following reports.

a). Executive Summary b). Plan Review c). Stable Value d). Managed Accounts Update

Adjournment

Action: Motion to Adjourn: Buffy Alexzulian; Second: Jim Frihart; Vote: (3-0). Meeting was adjourned at 10:15 a.m.

Next meeting is Friday, September 14th, at 9:30 a.m. in the Dogwood Conference Room on the 2nd floor of GJAC at 75 Langley Drive Lawrenceville, GA 30046.

For Existing Institutional Client Use Only.© 2018 Columbia Management Investment Advisers, LLC. All rights reserved. 2222349 (08/18)

Gwinnett County Public Employees Retirement System

As of July 31, 2018

Investment Review

For Existing Institutional Client Use Only. © 2018 Columbia Management Investment Advisers, LLC. All rights reserved.

Presenter

Rich McCloskey, CFAVice President, Client Portfolio Manager

Equity Investments+(1) 617 385 [email protected]

1


Table of contents

Section 1Firm overview

Section 2

Investment guidelines

Portfolio review

AppendixSection 4

Section 3

2

Firm overviewFirm overview

Ameriprise Financial Inc. Overview of business lines

Source: Ameriprise Financial Inc. as of June 30, 2018, unless otherwise stated.

For Existing Institutional Client Use Only. © 2018 Columbia Management Investment Advisers, LLC. All rights reserved. 4

Asset management businesses

Financial advisory business

Insurance & annuities businesses

Ameriprise Trust Company

Assets under management

AUM includes all assets managed on a discretionary or non-discretionary basis by the entities in the Columbia and Threadneedle group of companies, which includes multiple separate and distinct GIPS-compliant firms that use the global brand name Columbia Threadneedle Investments.Due to intercompany sub-advisory relationships, certain assets under management are included under more than one firm.


Columbia Management Investments (GIPS Firm)Threadneedle Asset Management (GIPS Firm)

AUM by product type (US$ billion)

US$482.9 billion in assets under management as of June 30, 2018

Columbia Threadneedle Investments total assets

$140.0

GIPS Firm assets under management Total assets (US$b)

$357.0

AUM by asset class (US$ billion)

Fixed Income$175.236%

Equity$259.354%

Alternatives$48.410%

Retail products$291.160%

Institutional products$191.740%

Columbia Threadneedle Investments Total institutional assets

Information as of June 30, 2018.*Corporate category includes Insurance and Corporate client types.AUM includes all assets managed on a discretionary or non-discretionary basis by the entities in the Columbia and Threadneedle group of companies, which includes multiple separate and distinct GIPS-compliant firms that use the global brand name Columbia Threadneedle Investments.Due to intercompany sub-advisory relationships, certain assets under management are included under more than one firm.

US$191.7 billion in assets under management


Total assets ($m)

Columbia Management Investments (GIPS Firm) $105,242Threadneedle Asset Management (GIPS Firm) $88,925

GIPS firm institutional assets under management

AUM by asset class AUM by client typeAUM by region

Fixed Income52%

Equity35%

Alternative13%

Corporate* 62%

Sub-advisory

14%

Institutional - Pooled

9%

Central Bank/Sovereign

Wealth 9%

Public 4%

Multi-Employer

2%

E&F <1% Individual

<1%

Religious <1%

U.S.45%

U.K.36%

MEA6%

Continental Europe

6%

Asia ex Japan4%

Pooled2%

Canada<1%

Japan<1%

Australia<1%

The breadth and depth of our investment resources

Over 450 investment professionals* based in North America, Europe and Asia, managing US$482.9 billion* of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.

Ameriprise Financial is one of the world's largest asset management groups,** managing the assets of some of the world’s

most prominent institutional clients, governments and publics, corporations, endowments and foundations.

Broad mix of capabilities and a willingness to work in strategic partnership with clients on customized investment solutions.

Information as of June 30, 2018.* Information is for all entities in the Columbia and Threadneedle group of companies. Total investment professionals includes additional professionals integral to the investment process

including multi asset/alternatives, economists, client portfolio managers, and investment risk professionals.** Source: Pensions & Investments/Towers Watson Global 500 Ranking. Based on combined AUM for all Ameriprise companies as of December 31, 2016.


Total equity investment professionals 224* 152* 451*

Portfolio managers 102 58 176

Analysts 87 68 193

Traders 24 22 49

Total investment professionals

Portfolio managers

Analysts

Traders

Portfolio managers

Analysts

Traders

Total fixed-income investment professionals

Core asset management principles

We are risk-aware investors Employing active approaches identifying market

inefficiencies and evolving market dynamics Seeking to optimize return within client risk objectives

We believe in autonomy with accountability Portfolio managers define their team philosophy, process

and structure; adherence to these definitions is monitored on an ongoing basis

Our perspective is global, built on macro and micro insights Extensive fundamental, quantitative and macro analysis is

available to all investment teams at their discretion Global trading, risk management and support teams

We employ a cohesive governance framework Ensuring discipline and alignment amongst the teams and

transparent compensation structures


Portfolio review


As of July 31, 2018Portfolio performance

1 Inception Date: 04/02/2013Source: Columbia Management Investment Advisers, LLC, FactsetPast performance does not guarantee future results. Please refer to the Disclosures at the end of this presentation for more information.

0%

5%

10%

15%

20%

25%

1 Month 3 Month Year to Date 1 Year 3 Year 5 Year Since Inception¹

Gwinnett County Public Employees Retirement System (Gross) Gwinnett County Public Employees Retirement System (Net) Russell 1000 Growth Index

1 Month (%)

3 Month (%)

Year to Date(%)

1 Year(%)

3 Year(%)

5 Year(%)

Since Inception1

(%)Gwinnett County Public Employees Retirement System (Gross) 1.99 6.44 13.96 20.80 11.79 15.50 16.49

Gwinnett County Public Employees Retirement System (Net) 1.96 6.32 13.65 20.23 11.25 14.94 15.91

Russell 1000 Growth Index 2.94 8.48 10.40 22.84 14.81 15.83 16.36

10


As of July 31, 2018Portfolio characteristics

1 Weighted Harmonic AverageSource: Factset

11

Characteristics1 Gwinnett County Public Employees Retirement System Russell 1000 Growth Index

Number of Holdings 33 542

Weighted Median Market Cap (mil.) $63,689.5 $104,790.4

Weighted Average Market Cap (mil.) $144,748.2 $265,879.2

Return on Equity 24.4% 22.6%

Price/Earnings (forward 12 mo.) 23.6x 18.9x

EPS Growth 3-5 Yr forward (wtd avg) 18.4% 14.0%

Long Term Debt/Capital (wtd avg) 31.1% 44.0%


Portfolio characteristics

Source: FactsetPast performance does not guarantee future results. Please refer to the Disclosures at the end of the this presentation for more information.

12

0%

10%

20%

30%

40%

50%

ConsumerDiscretionary

ConsumerStaples

Energy Financials HealthCare

Industrials InformationTechnology

Materials Real Estate TelecomServices

Utilities Cash

Gwinnett County Public Employees Retirement System Russell 1000 Growth

-30%

-20%

-10%

0%

10%

20%

30%


ConsumerStaples


Industrials InformationTechnology

Materials RealEstate

TelecomServices

Utilities Cash

Gwinnett County Public Employees Retirement System Russell 1000 Growth

Average year to date sector allocation

Sector year to date performance

Year to date as of July 31, 2018


Top contributors & detractors

13

Top 5 Detractors Contribution to Return

Monster Beverage Corporation -0.90

Cognex Corporation -0.41

Ctrip.com International Ltd Sponsored ADR -0.37

Alibaba Group Holding Ltd. Sponsored ADR -0.36

Northrop Grumman Corporation -0.33

Top 5 Contributors Contribution to Return

Illumina, Inc. 1.11

Amazon.com, Inc. 1.00

salesforce.com, inc. 0.72

Adobe Systems Incorporated 0.72

IDEXX Laboratories, Inc. 0.70


Source: FactsetPast performance does not guarantee future results. Please refer to the Disclosures at the end of the this presentation for more information.


Attribution analysis

Source: FactsetPast performance does not guarantee future results. Factset uses timeweighted returns to measure performance by utilizing the portfolio’s beginning of day security weights and end of day securityprices, then geometrically links the daily returns across the measurement period. This method for calculating a portfolio’s return removes the impact of cash flows on portfolio performance. Factsetattribution is intended to provide insight into directional market forces but not intended to provide realized portfolio performance. Attribution analysis shows drivers of performance relative to the accountbenchmark.

14

Attribution Analysis (Relative) Stock Selection

(%) Sector Weighting

(%) Net Contribution

(%)

Consumer Discretionary 0.51 0.18 0.69

Consumer Staples 0.01 0.08 0.09

Energy 0.15 -0.09 0.06

Financials 0.16 -0.17 -0.01

Health Care 1.30 -0.01 1.29

Industrials -0.60 0.67 0.07

Information Technology 0.53 0.21 0.75

Materials 0.00 0.39 0.39

Real Estate 0.00 0.21 0.21

Telecom Services 0.00 0.13 0.13

Utilities 0.00 0.00 0.00

Cash 0.00 -0.14 -0.14

Total 2.07 1.46 3.53



Attribution analysis

Source: FactsetPast performance does not guarantee future results. Factset uses timeweighted returns to measure performance by utilizing the portfolio’s beginning of day security weights and end of day securityprices, then geometrically links the daily returns across the measurement period. This method for calculating a portfolio’s return removes the impact of cash flows on portfolio performance. Factsetattribution is intended to provide insight into directional market forces but not intended to provide realized portfolio performance. Attribution analysis shows drivers of performance relative to the accountbenchmark.

15

Attribution Analysis (Relative) Stock Selection

(%) Sector Weighting

(%) Net Contribution

(%)

Consumer Discretionary -0.65 0.14 -0.51

Consumer Staples 0.68 0.15 0.83

Energy 0.07 -0.11 -0.04

Financials -0.11 -0.19 -0.30

Health Care -2.33 -0.36 -2.69

Industrials -1.27 0.13 -1.14

Information Technology 1.05 0.16 1.21

Materials 0.00 0.47 0.47

Real Estate 0.00 0.32 0.32

Telecom Services 0.00 0.15 0.15

Utilities 0.00 0.00 0.00

Cash 0.00 -0.32 -0.32

Total -2.55 0.54 -2.00

One year as of July 31, 2018


Top 10 holdings

Source: Factset

16

Issuer % of Portfolio % of Russell 1000 Growth

Amazon.com, Inc. 4.84 5.50

Visa Inc. 4.44 1.86

Facebook, Inc. Class A 4.17 3.12

NVIDIA Corporation 3.95 1.08

Alibaba Group Holding Ltd 3.94 0.00

Paypal Holdings Inc. 3.84 0.74

Illumina, Inc. 3.76 0.36

salesforce.com, inc. 3.70 0.74

Booking Holdings Inc. 3.59 0.74

Servicenow, Inc. 3.45 0.23

Total 39.69 14.38

As of July 31, 2018

Current outlookAs of July 31, 2018

The recalibration of growth expectations has allowed for moredifferentiation in the market, creating an environment for stock picking topay off for patient investors.

Looking at the bigger picture, we continue to witness the vast majority ofthe world in expansion-mode, U.S. employment and consumerconfidence remain high along with accommodative monetary policy andinterest rates on a relative historical basis.

These factors should be supportive for overall corporate profitability, andwe continue to believe that the prospects of a U.S. recession in the nearterm remain diminished. Overall, we remain constructive on equities andour portfolio of high-growth stocks.

We will continue to watch the global trade policies closely. InitialU.S./China tariffs are scheduled to begin in July. While the headlines areworrisome, it is important to keep in mind that even the current Chinatariff proposals impact small portions of the respective country’s grossdomestic product and overall trade.

While not optimal by any stretch, many companies should be able tomanage through. Hopefully cooler heads will ultimately prevail keepingthese issues contained and potentially used as negotiating tactics forfuture discussions and potentially lower tariffs in the end. However, itappears that at this time investor psyche has been dented.

Ultimately, being patient and keeping a long-term focus will be critical toinvestment success. Market volatility may remain elevated for some time,as investors will have to continue to navigate the push and pull of areflationary vs. deflationary world, which may lead to mini-cycles favoringdifferent sectors at different times.

We will remain cognizant of these moves, looking to harvest successwhen necessary and exploit opportunities where possible, as manyinvestors have trouble distinguishing between the noise and news.

We continue to believe tax reform will be a positive for the U.S. equitymarket, with the potential to generate additional capital appreciation. Ameaningful change in tax rates would positively benefit a wide range ofcompanies, serving as an earnings growth tailwind.

Acceleration of economic growth rates generally will be supportive to themore cyclically sensitive areas such as financials, industrials and energy.

As growth investors, we tend to have less exposure to traditionallycyclical areas, yet our portfolio would benefit from increased businessconfidence and spending, particularly in the information technologysector. Information technology has historically been viewed as industrialson steroids.

Many firms/industries have held back on capital spending initiatives overthe past few years in response to the tepid economic growth backdrop.Tax reform could accelerate spending in key areas of our portfolio.

Better economic growth is also good for jobs, wages, and consumerconfidence, and in turn, will benefit our positioning in the consumerdiscretionary since broad-based spending would rise.

Additionally, most of the names in the strategy are multi-nationalcompanies that conduct large operations overseas, namely ourinformation technology and health care positions. Repatriation couldhave a meaningful positive influence on our portfolio, as we believe therewill be a large uptick in merger and acquisition activity.

The views expressed are as of the date given, may change as market or other conditionschange and may differ from views expressed by other Columbia Management InvestmentAdvisers, LLC (CMIA) associates or affiliates. Actual investments or investment decisionsmade by CMIA and its affiliates, whether for its own account or on behalf of clients, maynot necessarily reflect the views expressed. This information is not intended to provideinvestment advice and does not take into consideration individual investor circumstances.Investment decisions should always be made based on an investor's specific financialneeds, objectives, goals, time horizon and risk tolerance. Asset classes described maynot be suitable for all investors. Past performance does not guarantee future results, andno forecast should be considered a guarantee either. Since economic and marketconditions change frequently, there can be no assurance that the trends described herewill continue or that any forecasts are accurate.


Health care growth themesAs of July 31, 2018

Demographics Aging population and steady increase in life expectancy both

at home and abroad.

Baby Boom retirement wave a key catalyst for annualMedicare population growth of ~3% for foreseeable future.

Consumption of healthcare goods and services risesexponentially as we age into the senior and elderly segment.

Innovation Increased global interest is driving spending and

development of new therapies and medical devices.

Spending for pharmaceuticals and biotech is growing fastestwith tools like genomic sequencing providing R&Dproductivity and faster times to market.

Specialty or precision medicine approach addressing unmetneeds.

Access/pricing New therapies can be very expensive, (cancer and rare

disease therapies near or over 100k per year for example),but highly selective with efficacy high (cure or near cure forsome).

Changing insurance landscape leading to increased out ofpocket spending for consumers.

Efforts to drive efficiency, reduce cost, eliminateunnecessary and redundant care, and improve effortstowards disease spending are all garnering increased focusand investment spending.


Source: Columbia Management Investment Advisers, LLC

Technology growth themesAs of July 31, 2018

Mobility As faster wireless networks are built around the globe,

growth in mobile data consumption has hit an inflection pointas the user experience has improved meaningfully.

Mobile data growth will continue at a high rate as 4G/LTEhigh-speed wireless continues to increase penetration.

Often referred to broadly as the Internet of Things, this trendhas implications for nearly every industry as the worldbecomes more connected through wired and wirelessdevices.

Digital marketing The $600 billion global advertising market is significantly

impacted by the shift to mobile content consumption.

Mobile devices now account for the majority of time spent onthe internet in the U.S. leading to increased digital mediaconsumption.

Cloud computing According to a report from Cisco Systems, by 2018, 76% of

all data center traffic will come from the cloud and three outof four data center workloads will be processed in the cloud.

Artificial Intelligence and Machine Learning While the academic field of Artificial Intelligence, or A.I.,

research has been around since the 1950s, only recentlyhave advances in computational power been sufficient totake A.I. from research labs to mainstream enterprises.

Machine Learning is a subfield of Artificial Intelligencefocused on providing computers with the ability to learn fromnew data as it emerges and is processed by the networks.

Real world examples of Artificial Intelligence and MachineLearning include Apple’s Siri and Amazon’s Echo, but webelieve A.I. and Machine Learning uses will continue todevelop across a wide range of industries like Health Care,Financial Services, Automotive and Industrial along withmany others.


Source: Cisco, Columbia Management Investment Advisers, LLC

Consumer growth themesAs of July 31, 2018

E-commerce is still gaining share of retail spending Greater convenience, selection and service continue to drive

omni-channel spending.

E-commerce has tripled its share of retail in the past decadeand stands at ~12% today.

M-commerce is additive to e-commerce and notcannibalistic, helping accelerate growth.

E-commerce continues to grow more than considerablyfaster than general retail sales.

Healthy lifestyle Participation in athletic activities (running, yoga, etc.) is

expanding particularly for women.

Consumers are wearing athletic apparel for activities otherthan exercising.

Consumer wallet shifting from “things” to “experiences”

The inflection in smartphone penetration has led to anincrease in digital pre-shopping whereby customers relymore on digital info and research before making experiencepurchases.

Millennials are leading this transition but don’t count out thebaby boomers who are more likely to want to experiencephysical stuff once they retire and approach their twilightyears.

Social media enhances experiences, making them moreinteractive and tangible allowing consumers to relive themonline thereby increasing the value proposition.

Spending on travel, gaming and lodging, restaurants,entertainment, etc. is growing faster than spending on basicapparel, accessories, consumer electronics, etc.


Source: Columbia Management Investment Advisers, LLC

Investment guidelines


Investment guidelinesGwinnett County Public Employees Retirement System

ObjectiveThe investment objective of the portfolio is to achieve long-term capitalappreciation by investing in common stocks traded in US and non-US equitymarket exchanges. Specific investment objectives are intended to definequantifiable measures by which the results of the portfolio will be measured andevaluated on an ongoing basis. The performance results and investmentcharacteristics of the portfolio will be measured and evaluated relative to the largecapitalization growth segment of the US equity market. The relative US equitymarket benchmark is defined as the Russell 1000 Growth Index. The portfolio isexpected to meet or exceed the following performance objectives:

Generate a total return in excess of the Russell 1000 Growth Index over athree- to five-year horizon.

GuidelinesThe investment manager is expected to carefully comply with the followingguidelines while implementing and executing the portfolio strategy.

Asset allocationThe portfolio is expected to be fully invested in US and non-US large capitalizationstocks. Any cash equivalent investments should represent “frictional” oroperational amounts and not strategic allocations. Therefore, cash equivalentsshould not exceed 5% of the portfolio at any time. Should market conditionssuggest a hostile environment where this asset allocation guideline may bedetrimental to the financial well being of the Client, the manager shouldcommunicate suggested tactical adjustment to this guideline with authorizedrepresentatives of the Client. Cash equivalent balances will be invested in theClient’s cash account with its custodial bank.

Authorized investmentsThe investment manager is permitted to invest in: US registered common and preferred stock

Securities convertible into US registered common or preferred stock; limitedto 10% of the portfolio’s market value

Cash or cash equivalents through Client’s cash account with its custodialbank

Non-US domiciled stocks traded through a US exchange or as ADRs,provided that the underlying corporation has a market cap equivalent to $100million.

Exchange Traded Funds (ETFs)

DiversificationThe portfolio is expected to remain diversified with respect to the exposures toeconomic sectors, industries and individual stocks. The following diversificationguidelines apply to the construction of the portfolio: No single issue shall exceed 5% (based on cost value) of the portfolio;

Investment in any single company will not exceed 10% of the company’s

market capitalization at time of purchase;

Non-US domiciled stocks, via ADRs, may not exceed 20% of the portfolio’s

market value;

No sector (defined by GICS) can have a weighting that exceeds two times thebenchmark allocation or a maximum of 30%, whichever is greater provided,however, that in no case shall the portfolio be weighted more than 50% in asingle sector.

The portfolio is expected to be constructed with approximately 25-35 stocks.

22


Investment guidelinesGwinnett County Public Employees Retirement System

Market capitalizationThe portfolio is expected to be invested in large capitalization companies with aweighted median average market capitalization no less than 0.3X the weightedmedian average market capitalization of the benchmark.

Other transactions

Prohibited Transactions include the investment in non-marketable securities,non-dollar denominated securities, private equity securities, private or directplacements, options, futures, commodities, real estate investments (including RealEstate Investment Trusts), short sales, margin purchases and securitieslending. Prohibited transactions also include companies listed on the ScrutinizedCompanies with Activities in the Iran Petroleum Energy Sector List per O.C.G.A.47-20-83.1 as provided by the client.

Derivatives Policy -- The use of any form of derivative security or investmentstrategy that effectively leverages the portfolio is prohibited.

CommunicationsClient must be informed promptly (within 24 hours) if any of the following occur: A substantial change in the ownership structure of Columbia.

Any loss of key investment personnel involved with the management of eitherthe investment process or the portfolio.

A change in investment philosophy that represents a deviation from thispolicy statement.

Any material adverse development in the ability of Columbia to manage theportfolio either in accordance with the standards of a prudent investmentmanager or within the context of this statement of investment policy.

Any situation that has the potential to impact the professionalism, financialposition or integrity of either Client or Columbia.

The Client will forward the Scrutinized Companies with Activities in the IranPetroleum Energy Sector List to the Adviser from time to time.

Scrutinized Companies with Activitiesin the Iran Petroleum Energy Sector

per O.C.G.A. § 47-20-83.1(2008 S.B.451)

Entity NameCHINA PETRO & CHEMICAL CORPORATIONCNOOC LTDCONG TV CO PHAN (PETROVIETNAM SOUTHERN GAS)ENI S.p.AGAZPROM (RUB)GAZPROM NEFTKUNLUN ENERGY COMPANY LIMITEDMALAYSIA MARINE & HEAVY ENGINEERING HOLDINGS BhDMISC BERHADOAO ENERGETIKI (MOSENERGO)PETROCHINA COMPANY LTDPETRONAS CHEMICALS GROUP BhDPETRONAS DAGANGANPETRONAS GASPETROVIETNAM ENGINEERING CONSULTANCY JOINT STOCK COPETROVIETNAM FERTILIZER & CHEMICALS CORPPETROVIETNAM TRANSPORTATION CORPSINOPEC KANTONS HOLDINGS LTDSINOPEC SHAN HAl PETROCHECMICALCOMPANY LIMITEDSINOPEC YIZHENG CHEMICAL FIBRE COMPANY LIMITEDSNAM RETE GASSTATOILSUNPOWER CORPORATIONTOTAL NIGERIA PLCTOTAL SA

23

Appendix

Columbia Focused Large Cap Growth (Rep Account)*

Quintiles of Dividend and Earnings Growth

* Net of fees.Periods illustrated dictated by the market as a representation of when dividends exceeded earnings growth.Past performance does not guarantee future results. Source: FactSet Research Systems. The analysis may vary if a different data source was used.FactSet uses time-weighted returns to measure performance for periods when portfolio holdings change. The calculation begins with security weights and returns on a daily basis, then geometrically links the daily returns across the measurement period. This method for calculating a portfolio’s return ensures that changes in the composition of the portfolio are captured and removes the impact that the timing of cash flows has on portfolio performance. Information provided by third parties is deemed to be reliable but may be derived using methodologies or techniques that are proprietary or unique to the third-party source.

25For Existing Institutional Client Use Only. © 2018 Columbia Management Investment Advisers, LLC. All rights reserved.

Average Total Contribution Average Total ContributionWeight Return To Return Weight Return To Return

DY of: 2.6 - 22.3 21.55 14.13 3.27 Earnings Growth of: 17.0 - 132.4 24.05 -0.87 -0.36DY of: 1.5 - 2.6 30.06 11.37 3.44 Earnings Growth of: 13.1 - 16.9 17.37 3.09 0.53DY of: 0.4 - 1.5 20.42 3.66 0.82 Earnings Growth of: 10.2 - 13.1 21.11 11.55 2.39DY of: 0.0 - 0.3 27.97 -0.68 -0.46 Earnings Growth of: 7.4 - 10.2 21.40 13.32 2.90Total 100.00 7.08 7.08 Earnings Growth of: - 98.6 - 7.3 16.07 9.71 1.64

Total 100.00 7.11 7.11


DY of: 2.3 - 12.5 30.85 5.30 1.61 Earnings Growth of: 17.9 - 298.7 18.00 -9.76 -1.85DY of: 1.4 - 2.3 25.64 0.29 0.06 Earnings Growth of: 14.0 - 17.9 19.94 -2.44 -0.50DY of: 0.3 - 1.4 16.75 -1.96 -0.34 Earnings Growth of: 11.5 - 14.0 19.67 -0.31 -0.06DY of: 0.0 - 0.2 26.77 -9.42 -2.64 Earnings Growth of: 8.9 - 11.5 19.62 0.32 0.06Total 100.00 -1.31 -1.31 Earnings Growth of: - 53.9 - 8.9 22.76 4.10 0.93

Total 100.00 -1.42 -1.42

S&P 500 Index 21.83

Rep account performance in the following period Return Jan 1, 2017 to Dec 31, 2017Columbia Focused Large Cap Growth (Rep Account) 36.33Russell 1000 Growth Index 30.21

15.13

Russell 1000 Growth Index: December 31, 2015 to December 31, 2016Dividend Yield Earnings Growth

Russell 1000 Growth Index: February 28, 2014 to May 8, 2014Dividend Yield Earnings Growth

Rep account performance in the following periodColumbia Focused Large Cap Growth (Rep Account)Russell 1000 Growth IndexS&P 500 Index

Return May 9, 2014 to May 8, 201526.1818.95

Columbia Focused Large Cap Growth (Rep Account)*

Quintiles of Dividend and Earnings Growth

* Net of fees.Periods illustrated dictated by the market as a representation of when dividends exceeded earnings growth.Past performance does not guarantee future results.Source: FactSet Research Systems. The analysis may vary if a different data source was used.FactSet uses time-weighted returns to measure performance for periods when portfolio holdings change. The calculation begins with security weights and returns on a daily basis, then geometricallylinks the daily returns across the measurement period. This method for calculating a portfolio’s return ensures that changes in the composition of the portfolio are captured and removes the impact thatthe timing of cash flows has on portfolio performance. Information provided by third parties is deemed to be reliable but may be derived using methodologies or techniques that are proprietary or uniqueto the third-party source.



DY of: 2.1 - 10.0 34.68 4.06 1.59 Earnings Growth of: 17.9 - 157.5 20.18 -7.64 -1.78DY of: 1.2 - 2.1 21.23 -2.09 -0.39 Earnings Growth of: 14.6 - 17.8 14.22 -3.78 -0.51DY of: 0.0 - 1.2 44.09 -8.50 -4.15 Earnings Growth of: 12.0 - 14.6 19.35 -5.58 -1.10

Earnings Growth of: 9.5 - 12.0 25.53 0.28 0.16Earnings Growth of: - 111.0 - 9.5 20.72 0.99 0.28

Total 100.00 -2.94 -2.94Total 100.00 -2.95 -2.95


DY of: 1.9 - 16.5 19.56 -24.75 -4.18 Earnings Growth of: 19.1 - 136.4 20.73 -48.88 -11.54DY of: 1.0 - 1.9 32.80 -34.01 -10.92 Earnings Growth of: 15.3 - 19.0 18.52 -43.66 -8.23DY of: 0.0 - 1.0 47.64 -46.39 -23.58 Earnings Growth of: 13.4 - 15.3 18.33 -36.57 -6.31Total 100.00 -38.68 -38.68 Earnings Growth of: 11.3 - 13.3 22.13 -26.77 -5.51

Earnings Growth of: - 10.2 - 11.3 20.29 -35.45 -6.91Total 100.00 -38.51 -38.51

26.46

Russell 1000 Growth Index: December 31, 2007 to December 31, 2008Dividend Yield Earnings Growth

S&P 500 Index

Dividend Yield Earnings GrowthRussell 1000 Growth Index: July 29, 2011 to December 30, 2011

S&P 500 Index

Rep account performance in the following periodColumbia Focused Large Cap Growth (Rep Account)Russell 1000 Growth Index

Return Jan. 1, 2012 to Dec. 31, 201215.3115.2616.00

Rep account performance in the following periodColumbia Focused Large Cap Growth (Rep Account)Russell 1000 Growth Index

Return Jan. 1, 2009 to Dec. 31, 200945.4837.21


Biographies

Rich McCloskey is Vice President and Client Portfolio Manager at Columbia Threadneedle Investments. In this role, Mr. McCloskey is responsible for providing detailed informationon the capabilities and investment views to existing and prospective clients as well as to consultants and other intermediaries. Prior to joining the firm, Mr. McCloskey was a ClientPortfolio Manager at New Amsterdam Partners, a Director of Consultant Relations at WestLB Asset Management and a Consultant at Russell Investments. He has been in theindustry since 1992. Mr. McCloskey received a B.A. in Economics from the University of Pennsylvania. In addition, he holds the Chartered Financial Analyst® designation.

Rich McCloskey, CFAVice President, Client Portfolio Manager

Thomas Galvin, CFALead and Senior Portfolio Manager

Thomas Galvin is the lead senior portfolio manager for the Focused Large Cap Growth Team at Columbia Threadneedle Investments. Mr. Galvin has led the strategy since he joinedone of the Columbia Threadneedle Investments legacy firms in 2003. Previously, as president and chief investment officer of the growth equity group, Mr. Galvin spent nearly fiveyears as chief investment officer and equity strategist for Credit Suisse First Boston (CSFB) in New York and Donaldson, Lufkin & Jenrette, which was acquired by CSFB. There, hewas responsible for market, sector and asset allocation analyses. Earlier, Mr. Galvin served for more than 12 years in a variety of roles ranging from transportation industry analyst tochief equity strategist at Deutsche Bank, which acquired the investment boutique C. J. Lawrence, which he joined in 1986. Mr. Galvin began his career as an investment officer andportfolio manager at The Chase Manhattan Bank. With more than 20 years of experience as a leading equity strategist and securities analyst, Mr. Galvin was named to InstitutionalInvestor’s All-America Research Team for portfolio strategy from 1999-2002. From 1992–1995 Institutional Investor named him to its All-America Research Team for researchcoverage, and The Wall Street Journal named him to its All-Star Analyst Team from 1994–1996. He has been a member of the investment community since 1983. Mr. Galvinreceived an undergraduate degree in finance from Georgetown University and an MBA in finance from New York University. He is a member of the New York Society of SecurityAnalysts and holds the Chartered Financial Analyst® designation.

Richard Carter is a senior portfolio manager for the Focused Large Cap Growth Team at Columbia Threadneedle Investments. He is responsible for primary research coverage ofthe financial and consumer sectors, as well as market research and quantitative portfolio analysis for the strategy. Mr. Carter has been a member of the Focused Large Cap Growthteam since 2003 when he joined one of the Columbia Threadneedle Investments legacy firms as a portfolio manager. He has been a member of the investment community since1993. Prior to joining U.S. Trust, Mr. Carter was an equity market strategist and a member of the asset allocation committee at Credit Suisse First Boston. At its predecessororganization, Donaldson, Lufkin & Jenrette, he was a portfolio strategist. Mr. Carter began his career at C.J. Lawrence as a research analyst, tracking the automotive andtransportation industries, before being promoted to portfolio strategist. He has been a member of the investment community since 1993. Mr. Carter received a B.A. in economics andgovernment from Connecticut College.

Richard CarterSenior Portfolio Manager

27


Biographies

28

Todd Herget is a senior portfolio manager for the Focused Large Cap Growth Team at Columbia Threadneedle Investments. He is responsible for research coverage in the healthcare, industrial and energy sectors. Mr. Herget has been a member of the Focused Large Cap Growth Team since 2003 when he joined one of the Columbia ThreadneedleInvestments legacy firms. Mr. Herget was also a portfolio manager and equity research analyst. Previously, he was a research assistant at the George E. Reed Heart Center at theWestchester Medical Center in New York. He has been a member of the investment community since 1998. Mr. Herget received a B.S. from Brigham Young University and an MBAfrom the University of Notre Dame.

Todd HergetSenior Portfolio Manager

Darren Powell, CFASenior Analyst

Darren Powell is a senior analyst for the Focused Large Cap Growth Equity Team for Columbia Threadneedle Investments, focusing on the non-U.S. growth companies. Mr. Powell has been a member of the Focused Large Cap Growth Team since 2016. Previously, Mr. Powell was an equity research analyst at Wellington Management focused on international and global growth strategies, as well as the Social Impact Portfolio. He also worked as an investment associate for Putnam Investments from 2002 to 2004. He has been a member of the investment community since 2000. Mr. Powell received a B.A. in International Studies from Colby College. He is a member of Boston Security Analysts Society and holds the Chartered Financial Analyst® designation.

Michael Gnadinger is a senior analyst for the Focused Large Cap Growth Equity Team for Columbia Threadneedle Investments, focusing on the technology, telecommunications andmedia industries. Mr. Gnadinger joined one of the Columbia Threadneedle Investments legacy firms in 2007 and has been a member of the Focused Large Cap Growth Team since2003. Previously, Mr. Gnadinger was an assistant portfolio manager in the private wealth management group at U.S. Trust. He has been a member of the investment communitysince 2001. Mr. Gnadinger received a B.A. in finance from the University of Delaware. He is a member of the New York Society of Security Analysts and holds the CharteredFinancial Analyst® designation.

Michael Gnadinger, CFASenior Analyst

Columbia Focused Large Cap Growth Institutional CompositePresentation and DisclosuresColumbia Management Investments


Calendar Year

Gross-of-fees Return

(%)

Net-of-fees Return

(%)

Index Return

(%)

Composite 3-Yr

St Dev (%)

Index 3-YrSt Dev

(%)

Internal Dispersion

(%)

Number of Portfolios

TotalComposite

Assets ($ mil.)

Total Firm Assets ($ bil.)

2017 36.33 35.41 30.21 15.33 10.54 0.58 45 9,990 3642016 -7.99 -8.64 7.08 16.50 11.15 0.39 50 9,065 3332015 8.65 7.90 5.67 14.56 10.70 0.56 49 13,402 3282014 9.73 9.02 13.05 15.75 9.59 0.83 40 12,677 3332013 45.14 44.23 33.48 17.66 12.18 0.56 42 11,553 3212012 16.15 15.40 15.26 19.66 15.66 0.67 29 7,250 3042011 -2.02 -2.66 2.64 19.80 17.76 0.57 22 6,484 2982010 25.50 24.70 16.71 25.65 22.11 0.12 9 4,296 2662009 47.32 46.39 37.21 23.90 19.73 N.A. ≤ 5 2,113 N.A.2008 -43.52 -43.90 -38.44 21.22 16.40 N.A. ≤ 5 826 N.A.

Inception Date 3/31/2003

Columbia Focused Large Cap Growth Institutional CompositeStatement of Performance Results

1. Columbia Management Investments claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPSstandards. Columbia Management Investments has been independently verified for the periods of January 1, 1993 to December 31, 2016. The verification report is available upon request.Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm- wide basis and (2) the firm's polic ies and procedures aredesigned to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

2. Columbia Management Investment Advisers, LLC, is an SEC- registered investment adviser (formerly known as RiverSource Investments, LLC prior to May 1, 2010). For purposes of compliance withthe GIPS standards, Columbia Management Investment Advisers, LLC has defined the Firm as Columbia Management Investments (prior to May 1, 2010 the Firm was known as RiverSourceInstitutional Advisors; prior to August 1, 2005 the Firm was known as American Express Asset Management), an operating division of Columbia Management Investment Advisers, LLC that offersinvestment management and related services to institutional c lients. As of May 1, 2010, certain long- term assets of Columbia Management Advisors, LLC (“ CMA” ) were merged into Columbia

Management Investments and included in firm assets as of that date. The Firm was redefined in January 2011 to include stable value assets that were previously excluded from the firm. BeginningMarch 30, 2015, the Columbia and Threadneedle group of companies, which includes multiple separate and distinct GIPS- compliant firms, began using the global offering brand ColumbiaThreadneedle Investments. As of January 1, 2017, the Firm was redefined to include Columbia Wanger Asset Management, LLC, a wholly- owned subsidiary of Columbia Management InvestmentAdvisers, LLC.

Columbia Focused Large Cap Growth Institutional CompositePresentation and Disclosures

Columbia Focused Large Cap Growth Institutional Composite

Columbia Management Investments


10. Past performance is no guarantee of future results and there is the possibility of loss of value. There can be no assurance that an investment objective will be met or that return expectations willbe achieved. Care should be used when comparing these results to those published by other investment advisers, other investment vehicles and unmanaged indices due to possible differences incalculation methods. Registration with the SEC as an investment advisor does not imply a certain level of skill or training.

11. From the period June 30, 2004 through May 31, 2008, accounts were removed from the Composite for any month where the net cash flow in or out of the account was greater than or equal to 25%of the opening market value of the account. For periods after June 1, 2008, accounts are no longer removed from the Composite due to large external cash flows.

12. Prior to May 1, 2010, the performance presented occurred while the investment management team was affiliated with a prior firm. The investment management team and process for thecomposite remained intact through the merger; therefore the performance results from the prior are linked to the performance record of the current firm. As the composite was not part of ColumbiaManagement Investment Advisers prior to May 2010, firm assets are shown as “ n/a” in the performance table.

4. The gross- of- fees returns are time- weighted rates of return net of commissions and other transaction costs. Net- of- fees returns are calculated by deducting from the monthly gross- of- feescomposite return one- twelfth of the highest c lient fee (model fee) in effect for the respective period. Composite returns reflect the reinvestment of dividends and other earnings.

5. Internal dispersion is calculated using the equal- weighted standard deviation of the annual gross returns of those portfolios that were included in the Composite for the entire year. If the compositecontains five or fewer accounts for the full year, a measure of dispersion is not statistically representative and is therefore not shown.6. The three- year annualized standard deviation measures the variability of the gross- of- fees composite and benchmark returns over the preceding 36- month period. It is not required to bepresented when a full three years of performance is not yet available.7. Portfolios are valued and composite returns are calculated and stated in U.S. dollars. Returns are calculated net of non- reclaimable withholding taxes on dividends, interest, and capital gains.Polic ies for valuing portfolios, calculating performance, and preparing compliant presentations, and the list of composite descriptions, are available upon request.

8. The following fee schedule represents the current representative fee schedule used as the starting point for fee negotiations for institutional c lients seeking investment management services inthe designated strategy: 0.65% on the first $25 million; 0.50% on the next $25 million; 0.40% on the next $50 million; Negotiable over $100 million. Gross of fee performance information does notreflect the deduction of management fees. The following statement demonstrates, with a hypothetical example, the compound effect fees have on investment return: If a portfolio's annual rate ofreturn is 10% for 5 years and the annual management fee is 65 basis points, the gross total 5- year return would be 61.1% and the 5- year return net of fees would be 55.9%.

9. The benchmark, the Russell 1000 Growth Index, measures the performance of those Russell 1000 Index companies with higher price- to- book ratios and higher forecasted growth values. Indexreturns reflect the reinvestment of dividends and other earnings and are not covered by the report of the independent verifiers.

3. The strategy aims to provide competitive, long- term capital appreciation by investing in larger companies whose growth prospects, in the opinion of the management team, appear to exceed thatof the overall market. The strategy uses a concentrated portfolio (generally 25 to 35 holdings) diversified across growth industry sectors and uses cross- correlation analysis on holdings to helpmanage portfolio volatility. The strategy may invest directly in foreign securities or indirectly through depositary receipts. The benchmark is the Russell 1000® Growth Index. The strategy does nothave an account minimum for composite inclusion. From June 1, 2008 to December 31, 2014, the strategy had a $5 million account minimum. Prior to June 1, 2008, the minimum was $3 million. Thecomposite was created June 1, 2004.

31

Past performance does not guarantee future results. Except where noted, results are for the client's own account and are not composite results. Performance is based on time-weighted, daily calculation using values that are determined in good faith by Columbia Management Investment Advisers, LLC and is calculated based on trade date, net oftransaction costs and reflects accrued interest. Gross performance does not reflect the deduction of management fees. The net performance reflects the deduction of managementfees as of the most recent quarter end. If you have any questions regarding the above information, or if there are any changes in your investment objectives or guidelines, pleasecontact your client relationship manager.

This performance report is separate from the custodial brokerage statement that is delivered to you identifying the securities and other assets held in your account at the end of thereporting period and setting forth all transactions in the account during that period. Transaction and valuation information reflected in this report may be inconsistent with theinformation presented in your custodial brokerage statement due to settlement dates and other factors. We urge you to compare the account statements from your custodian withthose that you receive from Columbia Management Investment Advisers, LLC.

Any client portfolio holdings information provided is proprietary and confidential. In receiving holdings data, clients and their authorized agents agree that the data is not beingobtained in order to effect securities transactions based upon such information or to provide such information to another party. References to specific securities should not beconsidered a recommendation to purchase or sell a particular security but rather an illustration of investment management strategy. Complete holdings information is available inclient statements.

Information provided by third parties is deemed to be reliable but may be derived using methodologies or techniques that are proprietary or unique to the third party source.

Entity Definitions and Disclosures

Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

Columbia Management Investment Advisers, LLC (“CMIA”) is an investment adviser registered with the U.S. Securities and Exchange Commission.


Disclosures

BARROW, HANLEY, MEWHINNEY & STRAUSS, LLC2200 Ross Avenue | 31st Floor | Dallas, TX 75201-2761

Telephone: 214.665.1900 | [email protected]

PORTFOLIO REVIEW

KIRBY SMITH, CFA

SEPTEMBER 14, 2018

GWINNETT COUNTY PUBLIC EMPLOYEESRETIREMENT SYSTEM

1BARROW, HANLEY, MEWHINNEY & STRAUSS, LLC

ORGANIZATIONAL OVERVIEWAS OF JUNE 30, 2018

39-Year-Old Firm, Founded in 1979 in Dallas, Texas

Sole Focus is “Long Only” Value Management for Institutional Investors

Institutional Focus – Boutique Culture

Firm is Financially Strong and Growing

Employee Equity Ownership

Strategy Inception Assets Under Management

Large Cap Value Equity 1979 38.6 Billion

Diversified Large Cap Value Equity 2000 6.4 Billion

Dividend Focused Value Equity 2000 7.8 Billion

Mid Cap Value Equity 1999 7.2 Billion

Small Cap Value Equity–Concentrated 1995 2.3 Billion

Diversified Small Cap Value Equity 2006 634 Million

Non-U.S. Value Equity 2006 2.3 Billion

ACWI Ex-U.S. Value Equity 2014 1.1 Billion

Global Value Equity 2010 4.8 Billion

Emerging Markets Equity 2012 82 Million

Fixed Income 1983 12.1 Billion


BHMS INVESTMENT PROFESSIONALS – EQUITY INVESTMENT TEAM

EQUITY MANAGEMENTYEARS OF

EXPERIENCE

YEARS AT

BHMS EQUITY MANAGEMENTYEARS OF

EXPERIENCE

YEARS AT

BHMS

James Barrow, Founding Director, Portfolio Manager 56 39 Rand Wrighton, CFA, Managing Director, Portfolio Manager / Analyst 18 13

Jane Gilday, CFA, Managing Director, Analyst 50 20 Brian Quinn, CFA, Director, Portfolio Manager / Analyst 17 13

James McClure, CFA, Managing Director, Portfolio Manager / Analyst 46 23 Michael Nayfa, CFA, Director, Portfolio Manager / Analyst 14 10

John Harloe, CFA, Managing Director, Portfolio Manager / Analyst 42 23 TJ Carter, CFA, CPA, Director, Portfolio Manager / Analyst 14 4

Monroe Helm, Director, Analyst 42 12 Josh Ayers, Director, Portfolio Manager / Analyst 14 3

Ray Nixon, Executive Director, Portfolio Manager 41 24 David Feygenson, Director, Analyst 14 <1

Lewis Ropp, Managing Director, Portfolio Manager / Analyst 37 17 Terry Pelzel, CFA, Director, Portfolio Manager / Analyst 13 8

Matt Egenes, CFA, Managing Director, Client Portfolio Manager 31 13 Eric Micek, CFA, Director, Analyst 13 5

Cory Martin, Executive Director, Portfolio Manager 28 19 John Barber, CFA, Director, Analyst 11 3

Mark Giambrone, Managing Director, Portfolio Manager / Analyst 26 19 Chris Hathorn, Analyst 11 3

Kirby Smith, CFA, Director, Client Portfolio Manager 25 13 Coleman Hubbard, CFA, Director, Analyst 9 6

Charles Radtke, CFA, Managing Director, Portfolio Manager / Analyst 24 <1 Zane Keller, CFA, Director, Analyst 7 3

Bill Underwood, Director, Client Portfolio Manager 22 20 DJ Taylor, CFA, CAIA, Analyst 5 2

David Ganucheau, CFA, Managing Director, Portfolio Manager / Analyst 22 14

Brad Kinkelaar, Managing Director, Portfolio Manager / Analyst 22 <1 Ross Campbell, Director, Responsible Investing Portfolio Manager / Analyst 15 <1

Jeff Fahrenbruch, CFA, Managing Director, Portfolio Manager / Analyst 21 16 Brad Mickelson, ESG Research Coordinator / Analyst 6 6

Sherry Zhang, CFA, Director, Analyst 21 5

James Carpenter, CFA, Director, Client Portfolio Manager 21 3 James McCormack, CFA, CIPM, Director, Quantitative Analyst 11 5

Pranay Laharia, CFA, Director, Analyst 20 5 Dawson Liu, Quantitative Analyst 1 <1

Luis Rhi, Director, Portfolio Manager/Analyst 20 <1

RESPONSIBLE INVESTING

PORTFOLIO ANALYTICS

BARROW, HANLEY, MEWHINNEY & STRAUSS, LLC 3

EQUITY PORTFOLIO MANAGEMENT TEAMS

Global Sector Research Analysts

Large Cap Value$38.6 B

James BarrowJeff FahrenbruchDavid GanucheauMark Giambrone

Cory MartinLewis Ropp

1979

Diversified Large Cap Value$6.4 B

Mark GiambroneMichael Nayfa

Terry Pelzel

2000

Dividend Focused Value$7.8 B

Ray NixonBrian QuinnLewis Ropp

2000

Mid Cap Value$7.2 B

James BarrowMark Giambrone

Terry Pelzel

1999

US ESG$ 7 M

Ross CampbellLewis Ropp

2017Small Cap Value /

Diversified Small Cap Value$2.9 B

John HarloeJames McClure

1996 / 2007

Non-USV$2.3 B

TJ CarterCharlie RadtkeRand Wrighton

2006

ACWI ex-USV$1.1 B

Josh AyersTJ Carter

Rand Wrighton

2014

Global Value Equity$4.8 B

David GanucheauMark GiambroneBrad Kinkelaar

Cory MartinMichael NayfaCharlie RadtkeRand Wrighton

2010

Concentrated All Country Value

$3 M

Cory MartinTJ Carter

Terry Pelzel

2014

Emerging Markets Equity$82 M

Rand WrightonJosh Ayers

Sherry Zhang

2012

Assets as of June 30, 2018.


Pranay Laharia, CFA Michael Nayfa, CFA

David FeygensonJane Gilday, CFAChris HathornMichael Nayfa, CFABrian Quinn, CFACharles Radtke, CFASherry Zhang, CFA

CONSUMER DISCRETIONARY

TJ Carter, CFA, CPADavid FeygensonPranay Laharia, CFATerry Pelzel, CFACharles Radtke, CFARand Wrighton, CFA

INDUSTRIALS

Jeff Fahrenbruch, CFAMark GiambronePranay Laharia, CFASherry Zhang, CFA

HEALTH CARE

Pranay Laharia, CFAEric Micek, CFATerry Pelzel, CFACharles Radtke, CFA

MATERIALS

INFORMATION TECHNOLOGY

Josh AyersJohn Barber, CFADavid Ganucheau, CFAZane Keller, CFAEric Micek, CFABrian Quinn, CFA

FINANCIALS

David FeygensonMonroe HelmLuis RhiLewis RoppRand Wrighton, CFA

ENERGY

Jane Gilday, CFASherry Zhang, CFA

CONSUMER STAPLES

Zane Keller, CFALuis Rhi

UTILITIES

Monroe HelmPranay Laharia, CFA

TELECOM. SERVICES

Eric Micek, CFABrian Quinn, CFALuis Rhi

REAL ESTATE

Ross CampbellBrad Mickelson

RESPONSIBLE INVESTING

Dawson LiuJames McCormack, CFA, CIPM

PORTFOLIO ANALYTICS

BHMS GLOBAL SECTOR ASSIGNMENTS


AT&T Services IncABX Air Inc-7Air Products & Chemicals Inc-34Alabama Power Company-19American Airlines-33American Institute of CPAsThe Boeing CompanyCVS Health Corporation-10Caterpillar Inc-13CenterPoint Energy Inc-20Chattem Inc-35ConocoPhillips Company-39Consolidated Edison Co of NY IncCox Enterprises IncEricsson Inc-13Genuine Parts Company-17

Harris Corporation (Exelis Inc)-35Johnson & Johnson-19Marathon PetroleumMonsanto Company - 7Norton Rose Fulbright US LLP-15Phillips 66 CompanyPrudential Retirement-16Public Service Enterprise GroupSaint-Gobain CorporationSouthern Company-20Stanley Black & Decker IncTeck Resources-11Thomson Reuters-9Valero Energy Corporation-34Verizon Communications-31WEA Insurance Trust

Number indicates client for 7 years or more.Partial client list - see appendix for disclosure.

Russell Investment Group-9Transamerica Asset ManagementUSAA Value Fund-14VALIC Broad Cap Value Income Fd-13Vanguard Windsor II Fund-33

AXA O/S Multi-Manager Funds-14American Beacon Funds-33Columbia Threadneedle Inv-14MML Investment Advisors, LLC - 9Principal Financial Group-13

Alabama Self-Ins Wkers Comp Fd-13Anchorage Police & Fire Ret SystemBoca Raton Police & Fire-21Charlotte Firefighters’ Ret System-15D/FW Airport Employees Ret Plan-21Gwinnett County Public ERS-12Memphis City Retirement System-36Merced County (CA) Ret System

City of Miami Fire & Police-28The Navajo Nation-28New York City Retirement Systems-9St Paul Teachers Ret Fund Assoc-18Schuylkill County Emps Ret PlanEmployees Retirement System of Texas - 7Tulsa County Retirement Sys-23

BaylorScott&White Health-26Cape Fear Valley Health SystemCatholic Health Initiatives-19Children’s Health-28El Camino Hospital-27Fidelis Care New YorkHartford HealthCare-10Highmark HealthKelsey-Seybold Clinic-14McLaren Health Care CorporationThe Methodist Hospital of Houston-12Methodist Le Bonheur Healthcare

Nash Health Care Systems-10Northwell HealthParkland Health and Hospital Sys-27Pathways Home Hlth and Hospice-14Rapid City Regional Hospital-19St Luke's Reg Medical Center-14Sturdy Memorial Hospital-17Texas Hospital Association-14Univ of Alabama Health Services-23Vizient Inc-26WakeMed-18Washington Reg Med Center-15

PUBLIC

HEALTH CARECORPORATE

ENDOWMENT / FOUNDATION

MUTUAL FUNDS

BHMS CLIENT PARTNERSHIPS

Alabama Power Co-19American Indian College-8BaylorScott&White Health-26Children’s Health-28Dallas Museum of Art-26Diocese of Fort Worth FoundationIdaho Endowment Fund Invt Board-14John W Anderson Fdn-15Joyce Foundation-34Mee Charitable Fdn-10Noble Foundation-25

Oklahoma Tobacco-13Pathways Home Health-14Purdue University-19Saint Francis University-9St. Mary’s Univ End Fund-8St. Mark’s School of Texas-22Texas Presbyterian Foundation-15Unihealth Foundation-15University of Alabama-23University of South Florida-7University of West Florida Fdn-15

Airconditioning & Refrigeration Ret-19Allied Pilots Association-34Bricklayers & Trowel Trades Int’l Pen-13Excavators Union Local 731 Pension-7Houston Carpenters-28Trust for the IBEW Pension Benefit Fd-23Ironworkers Mid-American Pension-16Jacksonville Plumbers & Pipefitters-12Miami Fire Fighters' Relief & Pen #175-10Minnesota Laborers Pen & Health-14

New York Racing Association-13Plumbers & Pipefitters Local 9-14Plumbers & Pipefitters Local 25-13Sound Retirement Trust-29Sheet Metal Workers Local #85-17Shopmen’s Ironworkers Local #502-16Southern Calif Lumber Ind Ret Fd-17Southern Electrical Retirement Fd-17Southeastern Carpenters & Millwrights-14Texas Iron Workers Trust Fund-23

TAFT-HARTLEY


MARKET OVERVIEW


The Energy sector outperformed the broadmarket in the second quarter following theOPEC agreement with Russia thatnormalized worldwide crude inventories.

Conversely, a flattening yield curve weighedon the Financials sector, rendering it one ofthe second quarter’s worst performers.

During the second quarter, most indicesregained the ground lost in the first quarter.

Domestic value stocks have significantly laggedthe growth benchmarks, due primarily to thebenefit derived from a much higher Technologystock weighting.

Emerging market stocks dramaticallyunderperformed their developed market peersduring the quarter while bonds continue tostruggle in the face of rising interest rates.

3.41.4

3.6

1.2

5.87.7

-0.8

-7.7

6.6

-0.2

14.4

7.6

14.5

6.8

22.5

17.5

7.38.6

23.6

-0.4

-10

-5

0

5

10

15

20

25

30

S&P 500 S&P 500Value

Russell1000

Russell1000 Value

Russell1000

Growth

Russell2000

MSCI EAFE MSCI EM NASDAQ BarclaysAggregate

Quarter One Year

% R

etur

n

INDEX RETURNSAS OF JUNE 30, 2018

Sources: BHMS; FactSet.

8.1

-2.2

13.5

-3.2

3.3

-3.2

7.1

2.6

6.1

-0.9

3.7

23.5

-3.7

21.0

9.6

6.75.5

31.3

9.9

5.0

1.43.4

-10

-5

0

5

10

15

20

25

30

35

ConsumerDisc.

ConsumerStaples


Industrials InformationTech.

Materials Real Estate Telecom.Services

Utilities

Quarter One Year

% R

etur

n

Sources: BHMS; FactSet.

S&P 500 SECTOR RETURNSAS OF JUNE 30, 2018

INDEX AND SECTOR RETURNS


While value has outperformed growth over the long term, the current duration of growth’s outperformance exceedsthat of the tech bubble, the Nifty 50, and the Great Depression.

Since the market low on March 9, 2009, the Russell 1000 Growth has outperformed the Russell 1000 Value by 101%.

VALUE VS. GROWTH

VALUE VS. GROWTHJULY 1, 1926 – JUNE 30, 2018

Sources: Bloomberg; FactSet; FAMA Data 1926-1975; Fundstrat Global Advisors.


Historically, value has outperformed growth by a wide margin.

The U.S Federal Reserve’s zero-interest-rate policy favored the beta trade (whichincluded growth stocks) off the March 2009 market low.

Growth’s outperformance over value is approaching levels that rival the run-up to thebursting of the technology bubble, and two standard deviations above the average.

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

'88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16

Russell 1000 Growth vs. Russell 1000 Value

10

-yea

r Rel

ativ

e R

etur

n (m

onth

ly)

2 Standard Deviations from Average

Average

2 Standard Deviations from Average

3.3%

Value Outperforming

Growth Outperforming

Technology Bubble

ANNUALIZED ROLLING TEN YEAR RELATIVE TOTAL

RETURN OF GROWTH VS. VALUEAS OF JUNE 30, 2018

Source: Strategas Research Partners.

GROWTH VS. VALUE


Over the past five years, the S&P 500 is ranked in the 76th percentile of active equity managers.

This ranking is cyclical, off its recent high, and is in the early stages of reverting to the mean.

This bodes well for active management.

0

10

20

30

40

50

60

70

80

90

100

67 72 77 82 87 92 97 02 07 12 17

Pe

rcen

t of M

anag

ers

Und

erpe

rfor

min

g th

e S&

P 5

00

Rolling 5-year S&P 500 Returns 1 Standard Deviation AverageSource: LCG Associates.

RANKING OF S&P 500 VS. DOMESTIC EQUITY MANAGERSMARCH 31, 1967 – JUNE 30, 2018

2016199819901973

Active Managers Outperforming

S&P 500 Outperforming

ACTIVE VS. PASSIVE


PROCESS AND PERFORMANCE


Price/Earnings Lower than the Market Price/Book Lower than the Market Dividend Yield Higher than the Market

The BHMS philosophy requires that the portfoliomust always have the following characteristics:

Bottom-up Stock Selection

Buy Stocks Trading at Discount to Market

Low Turnover Approach

40-50 Stock Portfolios

Max. 15% in an Industry Group

Max. 5% Cash

STOCK SELECTION OBJECTIVES:

Port

folio

/S&

P 5

00

Port

folio

/S&

P 5

00

Source: FactSet.

CHARACTERISTICS VS. S&P 500

-29%

32%

-10%

-40%

-20%

0%

20%

40%

60%

P/E (NTM) P/BV Yield

CHARACTERISTICS VS. S&P 500

-4%

9%

18%

44%

-20%

0%

20%

40%

60%

EPS ROE DPR Reinv. Rate

PORTFOLIO CHARACTERISTICSAS OF JULY 31, 2018

Price/Earnings (NTM) 14.7 x 14.4 x 16.7 x

Price/Book Value 2.3 x 2.1 x 3.3 x

Div. Yield 2.5 % 2.4 % 1.8 %

B HMS Pro j ecti ons

EPS Growth 10.4 % 10.0 % 7.0 %

Profitability (ROE) 17.5 % 15.6 % 16.0 %

Div. Payout Ratio (DPR) 47.5 % 44.7 % 40.0 %

Reinv. Rate [ROE (1-DPR)] 9.2 % 8.6 % 9.6 %

Gwi nnett

County

Russe l l

1000

Val ue S&P 500


Hands-on, Fundamental Research Performed by Long-tenured, Experienced Investment Team

Research Compelling Ideas, One at a Time

Construct Financial Projections ESG Scoring and Evaluation Company / Management Visits Daily Research Meetings to Monitor Existing and Potential Holdings

Initial Universe Screened Down to a Guidance List of Investment Opportunities

Stocks with a Market Cap Greater than $1 Billion Low P/E, Low P/Bk and High Dividend Yield as Compared

to the S&P 500 Generally Low-Expectation Stocks

Bring Forward Only Best Ideas

Construct Diversified Portfolios

Approximately 3% “Core” Positions Maximum 15% in an Industry Maximum 35% in any Sector

No Market Timing - Maximum 5% Cash

FINAL PORTFOLIO

Monitor Diversification Schedule Daily

3-5 Year Investment Horizon Results in Low Turnover (25% - 30%)

Disciplined Sell Process Initiated When:

The Stock Reaches our Estimation of Fair Value Our Investment Thesis Changes Materially or is No Longer Valid

1,800 Securities

250 SecurityGuidance List

40-50 Security Portfolio

FINAL PORTFOLIO

PORTFOLIO CONSTRUCTION

INVESTMENT PROCESS

INITIAL UNIVERSE

BHMS LARGE CAP VALUE PROCESS


PORTFOLIO STRUCTURE

PERFORMANCE

Source: APX.

PORTFOLIO STRUCTURE AND PERFORMANCEAS OF JULY 31, 2018

Market Pct. Portfolio Value on 7/31/2017 $ 64,462,446 Value Assets Net Additions/Withdrawals 73

Realized Gains 898,853 Cash and Equiv. $ 465,073 0.6 Unrealized Gains 6,900,150 Equities 73,548,118 99.4 Income Received 1,751,669 Total $ 74,013,191 100.0 Portfolio Value on 7/31/2018 $ 74,013,191

PORTFOLIO COMPOSITION CHANGE IN PORTFOLIO

Gwinnett County (GOF) 6.06 % 14.82 % 10.82 % 11.85 % 13.76 % 10.62 % 7.85 %

Gwinnett County (NOF) 5.76 % 14.38 % 10.43 % 11.46 % 13.37 % 10.22 % 7.53 %

Russell 1000 Value 2.20 % 9.54 % 9.51 % 10.04 % 12.43 % 8.95 % 6.29 %

S&P 500 6.47 % 16.24 % 12.52 % 13.12 % 14.16 % 10.67 % 8.38 %Periods over one year are annualized.

YTD 1 Year 3 Year s 5 Years 7 Years 10 Y ears

Si nce

Incepti on

(12/31/06)

F or Per i ods Endi ng Jul y 31, 2018


See Appendix for disclosure.Source: FactSet.

PORTFOLIO ATTRIBUTIONVS. RUSSELL 1000 VALUE – YEAR-TO-DATE ENDING JULY 31, 2018

Average Total Average Total Allocation Selection + TotalBHMS Sector Weight Return Weight Return Effect Interaction EffectEnergy 16.4 17.7 11.1 9.6 0.5 1.2 1.7

Consumer Discretionary 11.4 13.2 7.1 1.8 0.0 1.1 1.1

Financials 20.2 4.7 26.4 0.8 0.1 0.8 0.9

Telecommunication Services 1.0 1.0 3.0 -8.0 0.2 0.1 0.3

Information Technology 12.6 6.9 9.2 6.7 0.2 0.0 0.2

Real Estate 0.8 18.5 4.6 1.4 0.1 0.1 0.2

Utilities 1.6 9.9 5.7 2.8 0.0 0.1 0.1

Health Care 17.5 7.4 14.2 7.7 0.2 -0.1 0.1

Materials 5.3 -0.4 3.2 0.0 -0.0 -0.0 -0.1

Consumer Staples 3.8 -19.5 7.4 -8.4 0.2 -0.5 -0.3

Industrials 9.3 -3.5 8.1 -0.6 -0.0 -0.3 -0.4

Total 100.0 6.2 100.0 2.2 1.4 2.6 4.0Select ion=return dif ferent ial x port folio weight. Allocation=weight dif ferential x return dif ferential between benchmark sector return and benchmark total return.Excludes cash

Gwi nnett County Russe l l 1000 Va l ue Attr i buti on Anal y si s

XL Group Ltd 2.2 % 0.93 % Altria Group Inc 1.5 % -0.43 %

Hess Corporation 2.0 % 0.63 % General Electric Company 2.2 % -0.35 %

Phillips 66 2.9 % 0.58 % Comcast Corporation Class A 1.7 % -0.31 %

Microsoft Corporation 2.7 % 0.55 % Philip Morris International Inc. 1.7 % -0.25 %

ConocoPhillips 2.5 % 0.55 % CVS Health Corporation 2.2 % -0.23 %Contribut ion to relat ive return is the combination of select ion interact ion and allocation interact ion as defined above. Excludes cash

Avg. Wt. Contribution Avg. Wt. Contribution

Lar gest Re l ati ve Por tfo l i o Contr i buto rs Lar gest Re l ati ve Por tfo l i o Detractor s


See Appendix for disclosure.Source: FactSet.

PORTFOLIO ATTRIBUTIONVS. RUSSELL 1000 VALUE – ONE YEAR ENDING JULY 31, 2018

Average Total Average Total Allocation Selection + TotalBHMS Sector Weight Return Weight Return Effect Interaction EffectEnergy 16.0 40.9 10.9 21.7 0.7 2.5 3.2

Consumer Discretionary 10.1 34.7 6.9 7.0 0.0 2.4 2.4

Information Technology 12.2 24.4 8.9 22.1 0.4 0.3 0.6

Real Estate 0.4 18.5 4.7 2.0 0.5 0.1 0.6

Utilities 0.9 10.8 5.9 3.8 0.4 0.1 0.5

Telecommunication Services 1.5 11.7 3.0 -6.3 0.2 0.3 0.5

Materials 5.5 13.3 3.1 14.8 0.2 -0.0 0.2

Consumer Staples 5.3 -14.4 7.7 -6.5 0.3 -0.2 0.1

Financials 20.2 12.0 26.3 12.8 -0.2 -0.2 -0.4

Industrials 9.1 -6.6 8.3 3.6 -0.1 -1.0 -1.1

Health Care 18.7 5.6 14.3 10.2 -0.1 -1.1 -1.2

Total 100.0 15.0 100.0 9.5 2.3 3.2 5.5Select ion=return dif ferent ial x port folio weight. Allocation=weight dif ferential x return dif ferential between benchmark sector return and benchmark total return.Excludes cash

Gwi nnett County Russe l l 1000 Va l ue Attr i buti on Anal y si s

Phillips 66 3.1 % 1.04 % Cardinal Health, Inc. 1.4 % -0.85 %

Microsoft Corporation 2.5 % 0.83 % * Teva Pharmaceutical Industries Limited ADR 0.1 % -0.78 %

BP p.l.c. ADR 3.1 % 0.80 % CVS Health Corporation 2.5 % -0.61 %

ConocoPhillips 2.3 % 0.78 % American International Group, Inc. 2.3 % -0.54 %

* Twenty-First Century Fox, Inc. Class A 1.9 % 0.71 % General Electric Company 1.8 % -0.54 %Contribut ion to relat ive return is the combination of select ion interact ion and allocation interact ion as defined above. Excludes cash

*Sold

Avg. Wt. Contribution Avg. Wt. Contribution

Lar gest Re l ati ve Por tfo l i o Contr i buto rs Lar gest Re l ati ve Por tfo l i o Detractor s


PORTFOLIO HOLDINGSAS OF JULY 31, 2018

Source: FactSet.

% Port. %R1000V % Port. %R1000V % Port . %R1000V

CONSUMER DISCRETIONARY 10.7 8.1 FINANCIALS 18.7 23.7 INFO. TECHNOLOGY 12.7 9.7Lowe's Companies, Inc. 3.3 JPMorgan Chase & Co. 3.2 Microsoft Corporation 2.8Dollar General Corporation 3.0 Wells Fargo & Company 3.0 Oracle Corporation 2.5

* Comcast Corporation Class A 2.6 Citigroup Inc. 2.7 Texas Instruments Incorporated 2.5Advance Auto Parts, Inc. 1.8 American Express Company 2.3 QUALCOMM Incorporated 2.0

American International Group, Inc. 2.2 Broadcom Inc. 1.6* Bank of New York Mellon Corporation 1.4 Hewlett Packard Enterprise Co. 1.3

CONSUMER STAPLES 2.7 7.3 State Street Corporation 1.4Altria Group Inc 1.0 XL Group Ltd 1.4Philip Morris International Inc. 1.0 * U.S. Bancorp 1.0 MATERIALS 5.1 4.1

* Tyson Foods, Inc. Class A 0.8 Air Products and Chemicals, Inc. 2.6HEALTH CARE 17.5 14.3 DowDuPont Inc. 2.5Anthem, Inc. 3.1

ENERGY 18.0 10.9 Medtronic plc 3.0Phillips 66 3.0 UnitedHealth Group Incorporated 2.8 REAL ESTATE 1.7 4.8Chevron Corporation 2.8 Pfizer Inc. 2.2 * HCP, Inc. 1.7BP p.l.c. ADR 2.8 CVS Health Corporation 2.0ConocoPhillips 2.7 Merck & Co., Inc. 1.7Occidental Petroleum Corporation 2.4 Johnson & Johnson 1.3 TELECOM. SERVICES 1.0 3.5Hess Corporation 2.2 Cardinal Health, Inc. 0.8 Verizon Communications Inc. 1.0

* Schlumberger NV 2.0 * Sanofi ADR 0.5

*New Holdings YTD INDUSTRIALS 8.9 8.1 UTILITIES 2.6 5.6United Technologies Corporation 2.5 Exelon Corporation 1.6

Total Eliminations YTD Johnson Controls International plc 2.3 * Dominion Energy Inc 1.0Cisco Systems, Inc. General Electric Company 2.1KeyCorp General Dynamics Corporation 2.0 CASH AND EQUIV. 0.6 PNC Financial Services Group, Inc.Twenty-First Century Fox, Inc. Class AWalmart Inc.


MARKET OUTLOOK


After a sharp move up from the March 2009 lows,the current bull market is the second longest andstronger in magnitude than past bull markets,adding to concerns about what is next for stocks.

Current valuations suggest more modestprospective market returns.

8

10

12

14

16

18

20

22

'86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18

S&P 500 MEDIAN FORWARD P/EJANUARY 31, 1986 – JUNE 30, 2018

Source: Bank of America Merrill Lynch.

11.5%

10.3%

7.9%

4.2%

-1.6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

> 10% 8-10% 6-8% 4-6% < 4%

10-Y

ear

CAG

R

Earnings Yield Tranche

Source: Strategas Research Partners.

Current

(As of June 30, 2018; based on forward 12 months estimated earnings).

S&P 500 10-YEAR RETURN

BY EARNINGS YIELD SINCE 1950 (BASED ON FORWARD 12 MONTH ESTIMATED EARNINGS)

AS OF JUNE 30, 2018

0%

100%

200%

300%

400%

500%

600%

0 20 40 60 80 100 120

CurrentMarch '09 to June '18

112 Mos, 389%

Average All Periods61 Mos, 226%

1990-00

1949-56

1982-87

1974-80

2002-07

1942-46

1957-61

1962-661987-90

1970-73

1966-68

S&P 500 HISTORICAL BULL MARKETS1928 – JUNE 2018

Bul

l Mar

ket A

dvan

ce (%

)

Bull Market Duration (months)Source: Strategas Research Partners.

EARNINGS AND VALUATIONS


COMPONENTS OF STOCK MARKET RETURNS

6.3%5.2% 5.3%

0.5%

6.0%

-3.7%

3.8%

2.1%

1.0%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

81 Years Ending6/30/18

Five Years Ending12/31/17 YTD 2018

10.6%

2.6%

13.3%

Dividend Yield Earnings Growth P/E Expansion (Contraction)

Dividend Yield

Earnings Growth

P/E Expansion (Contraction)

Source: Bank of America Merrill Lynch.

81-year time period: June 30, 1937 – June 30, 2018. 5-year time period: December 31, 2012 – December 31, 2017.

COMPONENTS OF STOCK MARKET RETURNS

Historically, dividend yield and earnings make up the vast majority of returns for the broad market.

P/E expansion, typically a very small portion of overall returns, contributed to more than half the return in the five years endedDecember 31, 2017.

Assuming a reasonable earnings growth rate from tax reform and government spending, and modest valuation contraction, equitiescould still generate returns in the mid single-digit range, an acceptable real risk premium to the 10-year Treasury.

Dividend payout ratios also remain low and could allow dividends to grow faster than earnings for an extended period.


Dividend growers and initiators have faroutperformed both static dividend payers andnon-dividend payers with less risk.

With record levels of cash flow on balancesheets, a change in corporate conservatism,fewer government restrictions, low payout ratios,and increased investor demand, dividends cangrow meaningfully from current levels.

12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 6/30/182

2

3

3

4

BHMS: LCV A 2.70 2.45 2.95 2.98 2.61 2.67 2.92 2.65 2.56 2.65

A (9)

A (18)

A (12) A (13)

A (11)A (9)

A (19)

A (16)A (17)

A (23)

Source for peer comparison: PEP for Windows; Group: CAI Large Cap Value Style.

BHMS – ONE OF THE HIGHEST-YIELDING MANAGERS

IN THE LARGE CAP VALUE UNIVERSE

Div

iden

d Yi

eld

Dividend Payers with No Change

Dividend Growers

Dividend Cutters

Non-Payers

10

11

12

13

14

15

14 16 18 20 22 24 26

Standard Deviation (%)

Aver

age

Annu

aliz

ed R

etur

n (%

)

Source: Ned Davis Research.

S&P 500 STOCKS BY DIVIDEND POLICYNOVEMBER 30, 1977 – MARCH 31, 2018

THE POWER OF DIVIDENDS

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

'90 '93 '96 '99 '02 '05 '08 '11 '14 '17

IMPACT OF DIVIDENDS ON TOTAL RETURNJANUARY 1990 – JUNE 2018

Annualized Return = 12.4% ($100 grows to $2,809)



Dividend Growers & Initiators

Dividend Payers w/ No Change in Dividends

Non-Dividend Paying Stocks

Sources: BHMS; Strategas Research Partners.


Holdings in your portfolio have seen meaningfuldividend increases in the past few years.

These dividend increases have come fromcompanies in a broad and diverse range ofsectors.

Payout ratios have room to increase fromcurrent levels.

Future dividend growth will come fromcompanies with strong and growing freecash flow and earnings.

Companies will be able to grow dividendssignificantly as capital is allowed to returnto shareholders.

June '1835.1

20

40

60

80

100

120

140

26 36 46 56 66 76 86 96 06 16

%

S&P 500 DIVIDEND PAYOUT RATIOJANUARY 1926 – JUNE 2018

Source: Empirical Research Partners Analysis (from Robert Schiller, S&P, Corporate Reports).

DIVIDENDS

Sources: BHMS; FactSet. Updated as of June 30, 2018.

BHMS Port fol io Holding and % Inc rease Within Las t Three Years

Citigroup Inc. 540% Bank of New York Mellon Corporation 41%

Broadcom Inc. 338% JPMorgan Chase & Co. 40%

Tyson Foods, Inc. Class A 200% XL Group Ltd 38%

American International Group, Inc. 156% Air Products and Chemicals, Inc. 36%

Texas Instruments Incorporated 82% Microsoft Corporation 35%

UnitedHealth Group Incorporated 80% General Dynamics Corporation 35%

Lowe's Companies, Inc. 78% American Express Company 35%

Comcast Corporation Class A 52% Altria Group Inc 35%

Medtronic plc 51% Dollar General Corporation 32%

CVS Health Corporation 43% QUALCOMM Incorporated 29%

Phillips 66 43% Dominion Energy Inc 29%


APPENDIX


HISTORY OF RESPONSIBLE INVESTINGBarrow, Hanley, Mewhinney & Strauss (BHMS) has a stable, experienced team of investment professionals that has managed SociallyResponsible Investing (SRI) portfolios for clients since 1983. We currently manage more than $6 billion in assets of value equity andfixed income SRI portfolios (as of January 31, 2017).

CLEARLY DEFINED VISIONAt BHMS, we have embraced the opportunity to align our pursuit of superior risk-adjusted returns with our guiding principles forresponsible investing by considering and incorporating detailed analyses of material ESG factors throughout our investment process.

CONSISTENT PHILOSOPHYFor the past four decades, our emphasis on fundamental, bottom-up stock selection has been the hallmark of BHMS’ investmentphilosophy. We have merely formalized the use of ESG scoring in our firm-wide securities analyses to estimate the future value ofcompanies that we own or are considering for investment over a long-term horizon, which has facilitated the development of BHMS’proprietary composite ESG scoring methodology.

RESEARCH PROCESSOur ability to perform firsthand, internal securities analysis is an important part of the BHMS research process and is, to a great extent,where the value is created on a bottom-up, stock-by-stock basis. This research-intensive process uniquely enables BHMS to understandthe ESG risks specific to each company in which we invest.

ENGAGEMENTAs a top-25 shareholder in more than 150 companies, assets under management of more than $90 billion, and a reputation as patient,long-term investors, we are in a unique position to directly engage corporate executives and encourage them to consider thesustainability of their companies’ assets, and to forcefully advocate for aligning the interests of management with those of our clients.

COST BENEFITAs active value investors, we have always been committed to a high active share, consistent alpha generation, and competitive fees toenhance returns for our clients. We are also committed to providing fee concessions to clients that utilize multiple BHMS investmentstrategies and are early adopters of new BHMS strategies.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) AT BARROW HANLEY


JOSH D. AYERS – Director, Portfolio Manager / Equity AnalystMr. Ayers joined BHMS in 2015 from Paradarch Advisors, LLC, where he published the firm’s financial newsletter. Prior to founding Paradarch, he was a partner atCorriente Advisors, LLC, where he was a co-portfolio manager for Corriente’s European Divergence Fund, LP. Mr. Ayers began his 14-year investment career at JPMorgan Chase. He received a BA from Southern Methodist University and an MBA from the University of Virginia’s Darden School of Business.

JOHN W. BARBER, CFA – Director, Equity AnalystMr. Barber joined BHMS in 2015 from Keefe, Bruyette & Woods, where he served as a vice president, working in the principal strategies group as a financialanalyst. Prior to this role, he served as a bank analyst in the firm’s equity research area. Mr. Barber received a BA in Economics from Trinity College inHartford. He is a member of the CFA Institute.

JAMES P. BARROW – Founding Director, Portfolio ManagerDuring Mr. Barrow’s 56-year investment career, he has worked as a securities analyst and portfolio manager for several major institutions including Citizens &Southern Bank of South Carolina, Atlantic Richfield, and Reliance Insurance. In 1973 he joined Republic National Bank of Dallas as a portfolio manager. He laterwas placed in charge of the Employee Benefit Portfolio Group and was a member of the Trust Investment Committee until the founding of this firm in 1979. Mr.Barrow graduated from the University of South Carolina.

PRESTON B. BROWN, CFA – Equity AnalystMr. Brown joined BHMS in 2018 from DePrince, Race & Zollo, Inc., where he served as a portfolio manager for the firm’s International Small Cap Value strategy.Prior to this role, Mr. Brown served as a senior research analyst, focused on idea generation for the firm’s non-U.S. strategies. He has 10 years of investmentexperience. Mr. Brown received a BSBA with a concentration in Finance from the University of Central Florida and is a member of the CFA Institute.

ROSS M. CAMPBELL, Director, Responsible Investing Portfolio Manager / Equity AnalystMr. Campbell joined BHMS in 2017 from SRI Research Group, where he was president of the consulting firm, focused on assisting companies with their corporatedisclosures and corporate sustainability reports. Before founding the SRI Research Group, Mr. Campbell managed the sustainability and investor relations effortsfor AECOM and Denbury Resources Inc. His 15-year investment career includes serving as a senior analyst for Wells Capital Management and as an investmentmanagement senior consultant for FactSet Research Systems. Mr. Campbell earned a BA from Franklin and Marshall College and an MBA from the Cox School ofBusiness at Southern Methodist University.

JAMES M. CARPENTER , CFA – Director, Client Portfolio ManagerMr. Carpenter joined BHMS in 2015 from Russell Investments, where he served as a portfolio manager for several multi-manager funds across the firm’sinternational and global equity strategies. Previous to this role, Mr. Carpenter was head of the firm’s global equity manager research team and was alsoresponsible for researching and ranking the value strategies of investment management firms. Prior to his nearly 18-year tenure at Russell Investments, Mr.Carpenter served as an auditor at Ernst & Young LLP. He graduated from Brigham Young University with both a Bachelor’s and Master’s degree in Accounting. Heis a member of the CFA Institute and the CFA Society of Seattle.

TJ CARTER, CPA, CFA – Director, Portfolio Manager / Equity AnalystMr. Carter joined BHMS in 2014 from Kingstown Capital Management, where he served as an analyst. His prior experience includes analyst positions at OutpointCapital Management and Highland Capital Management. Mr. Carter began his 14-year career at Deloitte & Touche, LLP. He received a BSBA from the Universityof Arkansas and an MBA from Columbia Business School.

VALUE EQUITY

BHMS EQUITY PROFESSIONALS


VALUE EQUITY (Continued)

MATTHEW P. EGENES, CFA – Managing Director, Client Portfolio ManagerMr. Egenes joined BHMS as a client portfolio manager in 2005. He joined our firm from American Century Investments, where he served as vice president andinstitutional client advisor. Prior to his eight years at American Century, Mr. Egenes was executive vice president and portfolio manager for the firm that is nowU.S. Bancorp, where he began his 31-year career in the investment management industry. Mr. Egenes graduated from Iowa State University with a BBA inFinance. He is a member of the CFA Institute and the CFA Society of Dallas-Fort Worth.

JEFF G. FAHRENBRUCH, CFA – Managing Director, Portfolio Manager / Equity AnalystMr. Fahrenbruch joined BHMS in 2002. Prior to joining BHMS, he was an equity analyst at Westwood Holdings Group. Mr. Fahrenbruch, with 21 years ofexperience in the investment industry, serves on the Board of Directors and the Strategic Advisory Board of the CFA Society of Dallas-Fort Worth. He earned a BBAin Finance with Highest Honors from the University of Texas, where he also served as an analyst on the MBA Investment Fund, LLC and competed on the Universityof Texas golf team. In 1997, Mr. Fahrenbruch received the Ben Hogan Award and now serves on the selection committee for the award.

DAVID I. FEYGENSON - Director, Equity AnalystMr. Feygenson joined BHMS in 2017 from VanEck Global, where he was a senior analyst, covering emerging market equities. Prior to joining VanEck, Mr.Feygenson served as a portfolio manager/senior analyst at Mirae Asset Global Investments, one of South Korea’s largest asset managers. His 14-year career alsoincludes a research position on the emerging markets team at Wellington Management Company. Mr. Feygenson earned a BS in Economics, magna cum laude,from the Wharton School of the University of Pennsylvania and an MSc in Finance and Economics from the London School of Economics.

DAVID W. GANUCHEAU, CFA – Managing Director, Portfolio Manager / Equity AnalystMr. Ganucheau joined BHMS in 2004 from Clover Partners, LP, where he served on the management team for several funds, including a financial sector fund.Prior to his tenure at Clover Partners, Mr. Ganucheau served as securities analyst at GSB Investment Management, where he began his 22-year career in theinvestment management industry. Mr. Ganucheau graduated from Southern Methodist University with a BBA in Accounting and is a member of the CFA Society ofDallas-Fort Worth.

MARK GIAMBRONE – Managing Director, Portfolio Manager / Equity AnalystMr. Giambrone joined BHMS in 1999. Prior to joining BHMS, Mr. Giambrone served as a portfolio consultant at HOLT Value Associates. During his 26-year career,he has also served as a senior auditor/tax specialist for KPMG Peat Marwick and Ernst & Young Kenneth Leventhal. Mr. Giambrone graduated summa cum laudefrom Indiana University with a BS in Business and received an MBA from the University of Chicago.

JANE GILDAY, CFA – Managing Director, Equity AnalystMs. Gilday joined BHMS in 1998. During her 50-year investment career, she has worked as a securities analyst at Argus Research, Spencer Trask & Co., FirstBoston Corp., M.J. Gilday Associates Inc., McKinley Allsopp, Gruntal & Co., Hancock Institutional Equity Services, and Advest Inc. Ms. Gilday graduated from SmithCollege, where she earned her BS in Economics, cum laude.

JOHN P. HARLOE, CFA – Managing Director, Portfolio Manager / Equity AnalystMr. Harloe joined BHMS in 1995 from Sterling Capital Management, where he served as a vice president and equity portfolio manager/analyst for 9 years. Duringthe remainder of his 42-year investment career, Mr. Harloe worked with James McClure at American National Insurance Company, American Capital Managementand Research, and Oppenheimer & Co., Inc. Mr. Harloe graduated from the University of South Carolina with a BA and an MBA.



CHRISTOPHER S. HATHORN – Equity AnalystMr. Hathorn joined BHMS in 2016 from Lionstone Capital Management, where he served as an analyst, focusing on long-only, value-oriented equityinvestments. Prior to his work at Lionstone, he was an analyst at The Sterling Group, LP. Mr. Hathorn began his investment career as an analyst at Stephens Inc.in its investment banking group. He received a BA in Economics and Business Administration from Rhodes College in Memphis and earned an MBA from ColumbiaBusiness School, where he completed the Value Investing Program.

H. MONROE HELM, III – Director, Equity AnalystMr. Helm joined BHMS as an equity analyst in 1997 and 2010. He founded Cimarrone Capital Management, LLC and was a co-manager of Monomoy NaturalResources Fund, both affiliated with CM Energy Partners, Inc. Mr. Helm was also a founding member of RoundRock Capital Management, LLC. During his 42-yearinvestment career, he has worked as a securities analyst at Republic National Bank of Dallas, Wells Fargo Investment Advisors, Morgan Stanley & Co., and Dillon,Read & Co. Mr. Helm has also worked for finance groups at Tenneco, Inc. and Lear Petroleum Corporation. He graduated from the University of Texas, where heearned both his BA and MBA.

W. COLEMAN HUBBARD, JR., CFA – Director, Equity AnalystMr. Hubbard joined BHMS in 2012 as an equity analyst, focusing on small cap stocks. Prior to joining BHMS, he served as a financial analyst at EdgeviewPartners. Mr. Hubbard began his investment career as an analyst at Bank of America Merrill Lynch. He graduated from Davidson College, where he earned a BAin Economics. Mr. Hubbard is a member of the CFA Society of Dallas-Fort Worth.

ZANE C. KELLER, CFA – Director, Equity AnalystMr. Keller joined BHMS in 2015. His prior experience includes serving as a research associate at Brandes Investment Partners in San Diego, where he specializedin analyzing financial institutions in both developed and emerging markets. Mr. Keller earned a BA in Economics and a BBA in Finance from the University ofTexas. He received an MBA from the University of California at Berkeley.

BRAD KINKELAAR – Managing Director, Portfolio Manager / Equity AnalystMr. Kinkelaar joined BHMS in 2017. He previously served as an equity portfolio manager and head of dividend strategies at Pacific Investment ManagementCompany (PIMCO). During his 22-year investment career, Mr. Kinkelaar served as a managing director and equity portfolio manager at Thornburg InvestmentManagement and as an equity analyst at State Farm Insurance Companies. Mr. Kinkelaar earned a BS in Management and Marketing from Eastern IllinoisUniversity, where he graduated cum laude. He received an MBA in Finance from the Kellogg School of Management at Northwestern University.

PRANAY G. LAHARIA, CFA – Director, Equity AnalystMr. Laharia joined BHMS in 2013. Prior to joining the firm, he served as an analyst for State Street Global Advisors in Ireland, where he led a team that focusedon the research of companies in the technology and telecom sectors. His 20-year career in the technology sector includes positions at Deutsche Bank Securities,Cambridge Technology Partners, and UOP, a Honeywell Company. Mr. Laharia graduated from the Indian Institute of Technology with a BTech in ChemicalEngineering. He earned an MS in Chemical Engineering from The Ohio State University and an MBA, with High Honors, from University of Chicago.

DAWSON LIU – Quantitative AnalystMr. Liu joined BHMS in 2018 as a quantitative analyst. His responsibilities at the firm include quantitative/market research and risk analysis, covering bothfundamental and quantitative aspects. Prior to joining BHMS, his experience included a position at PanAgora Asset Management, Inc. Mr. Liu holds an MS inMathematical Finance from Boston University and a BS in Finance from Shanghai Jiao Tong University.




CORY L. MARTIN – Executive Director, Portfolio ManagerMr. Martin joined BHMS in 1999. During his 19-year tenure at BHMS, he has been instrumental in the creation, development, and implementation of our non-U.S.value equity strategies. He has also overseen the construction and management of the model portfolio that is used to manage a portion of assets in the firm’sLarge Cap Value strategy. Prior to joining BHMS, Mr. Martin served as a vice president at Templeton Investment Counsel, Inc. in Fort Lauderdale, Florida. His 28-year career in the investment management industry includes serving as an institutional investment consultant at LCG Associates, Inc. Mr. Martin is a member of theCFA Institute and the CFA Society of Dallas-Fort Worth. He graduated from Baylor University.

JAMES S. McCLURE, CFA – Managing Director, Portfolio Manager / Equity AnalystMr. McClure joined BHMS in 1995 from Goldman Sachs Asset Management, where he had been a vice president and senior portfolio manager, managing theCapital Growth Fund, as well as separate accounts. During his 46-year investment career, he has served as the Chief Investment Officer, and then President andChief Operating Officer at National Securities and Research Corporation. He also served as the Chief Investment Officer and executive vice president atOppenheimer & Co., Inc. He managed mutual funds at American Capital Management and Research and was initially a securities analyst at American NationalInsurance Company. Mr. McClure graduated from the University of Texas where he earned both his BA and MBA.

JAMES R. McCORMACK, CFA, CIPM – Director, Quantitative AnalystMr. McCormack joined BHMS in 2014. His responsibilities include portfolio/market research, risk analysis, and model construction, using both traditional andquantitative approaches. Mr. McCormack also works closely with our equity client service team, developing proprietary reports and models to enhance ourprocesses. He serves on the BHMS Investment Risk Committee and the BHMS Responsible Investing Committee. Prior to joining the firm, Mr. McCormack workedas a senior portfolio analytics specialist for FactSet Research Systems. He is a member of the CFA Institute and the CFA Society of Dallas-Fort Worth. Mr.McCormack graduated from Fordham University with a BA in Economics.

ERIC M. MICEK, CFA – Director, Equity AnalystMr. Micek joined BHMS in 2013 from Wells Fargo Securities, where he served in the Energy and Power group in the investment banking division. His 13 years ofexperience includes positions at Standard and Poor’s and the Royal Bank of Canada. Mr. Micek earned his BS degrees in Electrical Engineering and Mathematicsfrom Southern Methodist University and his MBA from Columbia Business School, where he completed the Applied Value Investing program.

BRAD A. MICKELSON – ESG Research Coordinator / Equity AnalystMr. Mickelson joined BHMS in 2012, focusing his efforts on market research and portfolio analysis. In 2015, Mr. Mickelson was appointed ESG ResearchCoordinator. His prior experience includes work in the wealth management business for UBS Financial Services. In addition, he served for six years as an enlistedengineer in the U.S. Navy, where he was awarded the Navy and Marine Corps Achievement Medal. Mr. Mickelson earned a BBA in Economics and an MBA inFinance from the University of North Texas and is currently a Level III CFA candidate.

MICHAEL B. NAYFA, CFA – Director, Portfolio Manager / Equity AnalystMr. Nayfa joined BHMS in 2008. His 14 years of experience includes work as an analyst at HBK and institutional equity sales at Natexis Bleichroeder. Mr. Nayfabegan his career in institutional sales at Sidoti & Company, LLC. He holds an MBA from the University of Texas, as well as a BBA in Finance from Texas ChristianUniversity, and is a member of the CFA Society of Dallas-Fort Worth.

RAY NIXON, JR. – Executive Director, Portfolio ManagerMr. Nixon joined BHMS in 1994 from Smith Barney, Inc., where he was a member of the firm’s Investment Policy Committee and served as their lead institutionalstockbroker for the Southwest. During his 41-year investment career, he also served as a research analyst for the Teacher Retirement System of Texas. Mr. Nixonis a member of the Board of the Salvation Army and is Chairman of the Texas Health Resources Endowment Investment Committee. He is also a member of theBoard of UTIMCO, fiduciary for the University of Texas endowment. Mr. Nixon holds a BA and an MBA from the University of Texas.




TERRY L. PELZEL, CFA – Director, Portfolio Manager / Equity AnalystMr. Pelzel joined BHMS in 2010. During his 13-year investment career, he served as a senior portfolio analyst at Highland Capital Management, LP and as afinancial analyst at Houlihan, Lokey, Howard & Zukin, Inc. Mr. Pelzel graduated from Texas A&M University, where he earned his BBA in Finance, magna cum laude.

BRIAN F. QUINN, CFA – Director, Portfolio Manager / Equity AnalystMr. Quinn joined BHMS in 2005. During his 17-year investment career, he served as an equity analyst for Clover Partners, LP and as a credit analyst for Frost Bank.Mr. Quinn received an MBA from Texas Christian University, where he served as a portfolio manager and equity research analyst for the William C. ConnerFoundation Educational Investment Fund and was named a Neeley Scholar. He earned a BS, with a concentration in Finance from Fordham University, where hewas a Varsity Football Letterman and three-time member of the Patriot League Academic Honor Roll. Mr. Quinn is a member of the CFA Society of Dallas-FortWorth.

CHARLES F. RADTKE, CFA – Managing Director, Portfolio Manager / Equity AnalystMr. Radtke joined BHMS in 2017 from Mercator Asset Management, where he served as a portfolio manager for non-U.S. equities for institutional clients. Prior toMercator, Mr. Radtke served as a portfolio manager and analyst for Invesco Global Asset Management, where he was a member of the portfolio management teamthat was responsible for $18 billion in global equities. His 24-year investment career includes serving as a portfolio manager and analyst for global equities withTempleton Worldwide. Mr. Radtke graduated from Marquette University with a BS in both Mathematics and Economics. He earned an MBA with an emphasis onApplied Security Analysis from the University of Wisconsin-Madison.

LUIS P. RHI – Director, Portfolio Manager / Equity AnalystMr. Rhi joined BHMS in 2017 from BNY Mellon, where he was a portfolio manager on their large cap equity, dividend equity, and MLP strategies. Mr. Rhi began his20-year investment career at BNY Mellon, and during his tenure there, he also served as a senior equity analyst and sector portfolio manager, covering Energy,Utilities, and REIT’s. Mr. Rhi earned a BBA in Finance from the McCombs School of Business at the University of Texas, where he served as an analyst on the MBAInvestment Fund, LLC. Currently, Mr. Rhi serves on the executive board for New York for McCombs (NYFM) and is an advisory board member for the McCombs RealEstate Investment Fund.

R. LEWIS ROPP – Managing Director, Portfolio Manager / Equity AnalystMr. Ropp joined BHMS in 2001 from Frost Securities, where he was a senior equity analyst and served as managing director of the Energy Group. He served inmanagement positions at Shell Oil Company and as a securities analyst in the energy sector at Howard, Weil, Labouisse, Friedrichs, Inc. prior to joining FrostSecurities. Mr. Ropp received a Wall Street Journal "Best On The Street" listing in 2001 for his coverage of the secondary oil sector. Mr. Ropp graduated from theUniversity of Louisiana at Lafayette with a BS in Mechanical Engineering. He received an MBA, as well as an MS in Civil and Environmental Engineering from TulaneUniversity.

KIRBY H. SMITH, CFA – Director, Client Portfolio ManagerMr. Smith joined BHMS in 2005 as a client portfolio manager. During his 25-year career, Mr. Smith served as a managing director of institutional equity sales forBear Stearns. Prior to joining Bear Stearns, he worked at Donaldson, Lufkin & Jenrette and Lehman Brothers. Prior to his investment banking tenure, Mr. Smithheld positions in public accounting and corporate finance. He graduated from Rhodes College with a BA and received an MBA in Finance and Accounting fromEmory University. Mr. Smith is a member of the American Institute of Certified Public Accountants, and the CFA Society of Dallas-Fort Worth.




DJ TAYLOR, CAIA, CFA – Equity AnalystMr. Taylor joined BHMS in 2016 as an equity analyst, focusing on small cap stocks. Prior to joining BHMS, he served as a senior analyst at Value ManagementGroup. Mr. Taylor earned a BA in Mathematics and Economics from Williams College, where he was an NCAA All-American and school record-holder for the Ephsswimming and diving team. He is a member of the CAIA Association.

WILLIAM B. UNDERWOOD – Director, Client Portfolio ManagerMr. Underwood joined BHMS in 1998. Prior to servicing the firm’s client relationships, his work at the firm included market and index research and portfolioanalysis. Mr. Underwood began his 22-year career as a financial analyst at First City Financial Corporation. He graduated from Baylor University with a BBA andreceived an MBA from the Cox School of Business at Southern Methodist University.

RANDOLPH S. WRIGHTON, JR., CFA – Managing Director, Portfolio Manager / Equity AnalystMr. Wrighton joined BHMS in 2005 as an equity analyst. During his 18-year investment career, he worked as an intern analyst for the University of TexasInvestment Management Company in Austin and Perry Capital in New York while attending graduate school at the McCombs School of Business at the Universityof Texas. Prior experience includes work as an associate in institutional equity sales for Deutsche Bank Securities in Atlanta. Mr. Wrighton served in the U.S.Marine Corps for four years, where he attained the rank of Captain. He is a member of the CFA Society of Dallas-Fort Worth. Mr. Wrighton holds an MBA fromthe University of Texas and a BA in Economics from Vanderbilt University.

SHERRY ZHANG, CFA – Director, Portfolio Manager / Equity AnalystMs. Zhang joined BHMS in 2013 from Matthews Asia, where she was responsible for the analysis and recommendation of Asian stocks across numerouseconomic sectors. Ms. Zhang’s 21-year investment career includes analyst roles at Q Investments, ARC Communication, and Exxon Mobil Corporation. Hertenure at Q Investments included a two-year residency in China, where she gained valuable firsthand experience overseeing operating companies located inemerging market economies. Ms. Zhang received her BBA in Finance, cum laude, as well as her MBA, from Baylor University.




ROBERT D. BARKLEY – Managing DirectorMr. Barkley joined BHMS in 1996. Prior to joining the firm, Mr. Barkley was a vice president and regional sales manager for Goldman Sachs Asset Management.During his 38-year investment career, he has worked as a senior capital advisor with SEI Corporation, and as a vice president in charge of institutional marketingat L.J. Melody & Co. He began his career at Goldman, Sachs & Co. as a member of the firm’s private client services group. Mr. Barkley graduated from BaylorUniversity with a BBA and from the Baylor School of Law with a JD.

BILL BRAXTON – DirectorMr. Braxton joined BHMS in 2018 from Crestline Investors, where he served as a managing director in the client service and partnership group. Prior to Crestline,he was a member of Merrill Lynch’s institutional and HNW distribution and asset management groups. Mr. Braxton has 18 years of investment experience,focused on sales, marketing, investment due diligence, finance, and entrepreneurship. He earned a BBA in Finance from the University of Mary Hardin-Baylor,where he competed on the basketball team and was an Academic All-American. Mr. Braxton holds an MBA from the Wharton School of the University ofPennsylvania with a dual concentration in Finance and Entrepreneurship.

LIN FITZENHAGEN, CFA – Managing DirectorMr. Fitzenhagen joined our firm as a director in 2010. Prior to joining BHMS, he worked for Callan Associates, where before acting as a general consultant, he wasa specialty consultant in Callan’s Global Manager Research Group responsible for covering international and global equity strategies. During his 17-yearinvestment career, Mr. Fitzenhagen also served at the San Diego City Employees' Retirement System as an investment analyst. He graduated from Washingtonand Lee University with a BA and received an MBA from the University of Texas at Dallas. Mr. Fitzenhagen is a member of the CFA Society of Dallas-Fort Worth, theFinancial Analysts Society of San Diego and the CFA Institute.

ANDREW T. GREENAWALT – Portfolio SpecialistMr. Greenawalt joined BHMS in 2016 from American Beacon Advisors, where he served as a wholesaler. Prior to his work at American Beacon, Mr. Greenawaltwas a wholesaler at Fidelity Investments and Nuveen Investments. He began his career as a client service specialist at Ameriprise Financial. Mr. Greenawaltearned a BA in Interdisciplinary Studies from the University of Illinois, where he competed on the wrestling team and was selected as an All-American Wrestler andranked in the Top Eight in the U.S. Mr. Greenawalt also holds an MBA from North Central College in Illinois and an MS from Northwestern University.

T. CLAYTON JOHNSTON – DirectorMr. Johnston joined BHMS in 2017 from Waddell & Reed Asset Management Group, where he served as vice president of institutional marketing. Prior to his 14-year tenure at Waddell & Reed, he was affiliated with the timberland investment group at Wachovia Bank in a similar capacity for eight years. Mr. Johnston, with26 years of investment experience, graduated cum laude from Washington & Lee University with a BS and earned an MBA from the University of Texas.

AMADI R. NZE – Portfolio SpecialistMr. Nze joined BHMS in 2017 from Milliman, Inc., where he served as a business development officer in their financial risk management practice. Prior to hiswork at Milliman, Mr. Nze was a regional investment specialist with Morgan Stanley Wealth Management. His 11-year investment career includes positions inwealth management at Morgan Stanley Smith Barney and Allianz Global Investors/PIMCO Advisors. Mr. Nze earned a BBA in International Business from TheGeorge Washington University.

CLIENT DEVELOPMENT



PATRICIA B. ANDREWS, IACCP – Managing Director, Chief Compliance & Risk OfficerMs. Andrews joined our firm in 2000. She began serving as BHMS’ Compliance Officer in 2001 and was appointed Chief Compliance Officer (CCO) in 2004. In2010, Ms. Andrews was also appointed Chief Risk Officer. She is responsible for overseeing the firm’s compliance program and firm-wide risk assessmentprogram. Her 32-year career in the investment industry includes serving at Citigroup and Morgan Stanley. Ms. Andrews graduated from Western GovernorsUniversity with a BS in Business Management. She holds the Investment Adviser Certified Compliance Professional (IACCP) certification, as well as the RiskManagement Specialist certification, and has also earned the CFA Institute Investment FoundationsTMCertificate.

COMPLIANCE

DHRUV V. KHADE, CFA – TraderMr. Khade joined BHMS in 2014 as an equity trader. In his position on the equity trading desk, he acts as a generalist, trading all sectors and strategies.Mr. Khade graduated from Cornell University, where he earned a BS in Policy Analysis and Management. He is a member of the CFA Institute and theCFA Society of Dallas-Fort Worth.

JASON W. SKINNER – Director, Head TraderMr. Skinner joined our firm in 1993 and currently serves as head equity trader. Mr. Skinner started his 25-year investment career with Fidelity Investments.He graduated from the University of Texas at Arlington with a BBA in Finance.

AARON J. SKIPWITH – Director, TraderMr. Skipwith joined BHMS in 2003. Mr. Skipwith currently serves as an equity trader. His 18-year investment career includes working for LampTechnologies LLC, a technology consultant and service provider to the alternative investment community. Mr. Skipwith also served as a quantitativeanalyst at ATA Research, Inc. He graduated from the University of Texas at Dallas with a BS in Economics and Finance, cum laude.

TRADING



Partial Client List: The representative client list was compiled based on diversity of client type and length of relationship with BHMS (both old and new relationships).Performance-based criteria was not used in determining which clients to include on the list. Inclusion on this list does not reflect an endorsement of our firm or the advisoryservices provided.

Russell Indexes: Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark ofFrank Russell Company.

General Disclosures: A complete list and details concerning all composites are available upon request. Past performance is not indicative of future results. This information isto be used solely in one-on-one discussions with plan sponsors and consultants, with the appropriate reference to these disclosures.

Largest Contributors/Detractors and Largest Gainers/Decliners: Returns shown are of an actual client’s portfolio managed by BHMS as of the date noted. Performance isexpressed in U.S. currency. The returns include the reinvestment of all income. Gross returns are presented before investment management and custodial fees. Pastperformance does not guarantee future results. The calculation methodology used and a list of the contribution to overall performance for each holding during themeasurement period is available by contacting [email protected]. Holdings identified do not represent all of the securities purchased, sold, or recommended.

REGULATORY DISCLOSURES

Presented by:

Brian M. McNamara | Managing Director | Analyst and Portfolio Specialist | Equities

TCW Concentrated CoreONE-ON-ONE STRATEGY PRESENTATION | SECOND QUARTER 2018

PRESENTATION TO:

Gwinnett County Retirement System

SEPTEMBER 14, 2018

PRESccs3729 8/24/2018 2

Distinguishing Features:

• A leading global asset management fi rm with nearly fi ve decades of investment experience

• Disciplined, team-managed investment processes that have been tested across market cycles

• Broad range of products and expertise across fi xed income, equities, emerging markets, and alternative investments

• High level of employee ownership of TCW

• For the fourth year in a row, TCW named “Best Places to Work in Money Management among fi rms with 500-999 employees” by Pensions & Investments, 2014, 2015, 2016, and 2017

Firm Facts:

• Established in 1971 in Los Angeles, California

• $198 billion under management

• Through our TCW, MetWest, and TCW Alternative Fund Families, TCW manages one of the largest mutual fund complexes in theU.S. with approximately $97 billion in assets under management

• TCW staff of more than 600 individuals

• Offi ces in Los Angeles, New York, Boston, Chicago, London, Hong Kong, and Tokyo

TCW Overview AS OF JUNE 30, 2018

Source: TCWComprises the assets under management, or committed to management, of The TCW Group, Inc. and its subsidiaries.

PRESccs3729 8/24/2018 3

TCW Investment Team and Resources

Over 84 Years of Combined Investment Experience

TCW Shareholders

TCW Select Equities Fund Shareholders

Analysts provide coverage of all major economic sectors

Approximately 150 years of combined investment experience

TCW Equity Research

Third Party Research

TCW Equity & Fixed Income Product Teams

TCW Portfolio Analytics Group

Brandon D. Bond, CFAManaging DirectorSenior Analyst

Craig C. Blum, CFAGroup Managing DirectorPortfolio Manager

Brian M. McNamaraManaging Director Analyst, Portfolio Specialist

Robert J. Park, CFAManaging DirectorSenior Analyst

INV

ES

TM

EN

T T

EA

MR

ES

OU

RC

ES

PRESccs3729 8/24/2018 4

Investment Philosophy

Strong long-term performance may be achieved by participating in the growth and success of extraordinary businesses purchased at attractive valuations.

Quality

Growth

Valuation

Opportunity

PRESccs3729 8/24/2018 5

Investment Process

Portfolio characteristics and holdings are subject to change at any time.

Universe~500

Companies

• Multi-channel idea sourcing

• Double-digit earnings growth

• Accelerating revenue, earnings and cash flow growth

• Growing Total Addressable Market (TAM)

• Strong balance sheet

• Proven management team

• Pricing power

• Cost leadership/scale

• Evaluate business model and industry dynamics

• Model and analyze company fundamentals

• Conduct competitor analysis

• Identify sustainable, competitive advantage

• Meet with and evaluate management

• Compare and contrast internal results vs. consensus

• Establish price targets

• Consider terminating idea

• Stock weight driven by conviction in return opportunity

• Balance between offensive and defensive growth

• Concentrated portfolio

– Large and attractive end markets

– Strong business models

– Dominant industry positions

– Favorable secular/macro themes

– Accelerating revenue, earnings and cash flow growth

• Tactical re-weightings driven by relative attractiveness, position size and intermedi-ate-term price targets

• Positions sold entirely when company valuation reflects our most optimistic outlook and/or cash is needed to take advantage of a more attractive opportunity

• Unexpected negative developments require immediate placement onto Review List.

– Is business model impaired?

– Is revenue opportunity impaired?

INITIALSCREEN

FUNDAMENTALANALYSIS

PORTFOLIOCONSTRUCTION

Generally 25-35 Companies

5-15 Companies

0-5 Companies

Watch List

Wish List

SELL DISCIPLINE

PRESccs3729 8/24/2018 6

Portfolio Construction: Staying Balanced

Source: TCWBased upon a representative account. Portfolio characteristics and holdings are subject to change at any time. It should not be assumed that an investment in the securities listed was, or will be, profitable.For a complete list of holdings, please see Summary of Holdings in this presentation.

~2/3 Offense

• “Offensive” growth:

– Innovative stories, disruptive to end markets, accelerating earnings power and margins

~1/3 Defense

• “Defensive” growth:

– Uncorrelated fundamentals

– Drivers of growth depend less on GDP growth

PRESccs3729 8/24/2018 7

Keen Focus on Risk Management

1. Diversification

• Seek to find growth across all sectors of the economy

• Portfolio construction seeks to reduce volatility by targeting uncorrelated business fundamentals

2. Strict sell discipline

• Price targets based on proprietary cash flow estimates

3. Proprietary fundamental research

• Business risk controlled through quality framework and depth of research enabled by concentration

4. Portfolio controls

• “Top heaviness” of portfolio monitored weekly

• Generally do not add to any holding once it exceeds 5% of total portfolio

5. Leverage TCW’s Portfolio Analytics Group

• Detailed attribution analysis provided on an ongoing basis

• Portfolio optimization and risk management (MSCI BARRA Aegis)

• Evaluate marginal contribution of risk for each name in the portfolio

Portfolio characteristics and holdings are subject to change at any time.

PRESccs3729 8/24/2018 8

Portfolio CharacteristicsAS OF JUNE 30, 2018 | SUPPLEMENTAL INFORMATION

Source: TCW, FactSetBased upon a representative account. Portfolio characteristics and holdings are subject to change at any time. All projections and estimates are based on current asset prices and are subject to change.Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

TCW Russell 1000® S&P 500 Concentrated Core Growth Index Index

Number of Securities 33 542 505

Average Price/Earnings: Next 12 Months 27.96x 20.44x 16.45x

PEG Ratio - Forward 1 Yr. 1.69x 1.53x 1.46x

Price-to-Sales 5.66x 3.45x 2.4x

Debt-to-Equity 1.06x 1.32x 1.76x

Dividend Yield 0.52% 1.25% 1.95%

Projected 3-5 Yr. Revenue Growth 15.51% 10.57% 7.25%

Projected 3-5 Yr. EPS Growth 19.10% 15.50% 12.50%

Market Capitalization (Billions)

Average ($ Weighted) $211.04 $274.79 $217.18

Average (Equal Weighted) $129.17 $34.54 $50.33

Median $57.57 $12.13 $20.72

PRESccs3729 8/24/2018 9

Sector WeightingsAS OF JUNE 30, 2018 | SUPPLEMENTAL INFORMATION

Cash

Telecommunication Services

Materials

Energy

Industrials

Consumer Staples

Financials

Real Estate

Healthcare

Consumer Discretionary

Information Technology

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

42.4%41.6%

16.3%17.9%

12.6%13.4%

6.9%2.2%

6.7%4.4%

4.7%5.7%

4.3%11.9%

1.2%1.0%

1.0%1.8%

0.0%0.2%

4.0%

TCW Concentrated Core

Russell 1000® Growth Index

Source: TCW, FactSetBased upon a representative account. Portfolio characteristics and holdings are subject to change at any time.Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

PRESccs3729 8/24/2018 10

TCW Concentrated Core Excess PerformanceROLLING 3 YEAR GROSS QUARTERLY RETURNS | SINCE INCEPTION THROUGH JUNE 30, 2018 | SUPPLEMENTAL INFORMATION

Source: Morningstar Direct Please see additional disclosures on page 20, which are an integral and important part of this presentation. Individual results may vary. Past performance is no guarantee of future results.Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

-40

-20

0

20

40

60

-40 -20 0 20 40 60

TCW

Con

cent

rate

d Co

re R

etur

n (%

)

Russell 1000® Growth Return (%)

TCW Concentrated Core Outperformance

Russell 1000® Growth Outperformance

PRESccs3729 8/24/2018 11

2018 1Q 4.45% 4.26% 1.42% 2Q 7.73 7.54 5.76 Year 12.52 12.13 7.252017 1Q 12.79 12.60 8.91 2Q 5.76 5.57 4.67 3Q 5.99 5.80 5.90 4Q 5.54 5.36 7.86 Year 33.44 32.51 30.212016 1Q -7.65 -7.82 0.74 2Q 1.35 1.16 0.61 3Q 5.13 4.95 4.58 4Q -5.69 -5.85 1.01 Year -7.20 -7.85 7.082015 1Q 3.32 3.14 3.84 2Q 1.83 1.65 0.12 3Q -2.29 -2.46 -5.29 4Q 9.87 9.67 7.32 Year 12.93 12.14 5.672014 1Q -0.67 -0.84 1.12 2Q 3.11 2.93 5.13 3Q 0.25 0.08 1.49 4Q 5.46 5.27 4.78 Year 8.29 7.53 13.052013 1Q 7.83 7.64 9.54 2Q -1.54 -1.71 2.06 3Q 12.18 11.98 8.11 4Q 9.13 8.93 10.44 Year 29.97 29.06 33.48

2012 1Q 16.00% 15.79% 14.69% 2Q -6.88 -7.05 -4.02 3Q 7.07 6.88 6.11 4Q 0.87 0.69 -1.32 Year 16.65 15.84 15.262011 1Q 5.80 5.62 6.03 2Q 1.61 1.43 0.76 3Q -10.32 -10.48 -13.14 4Q 8.92 8.73 10.61 Year 5.00 4.27 2.642010 1Q 3.61 3.43 4.65 2Q -11.63 -11.79 -11.75 3Q 15.44 15.25 13.00 4Q 11.40 11.20 11.83 Year 17.75 16.92 16.712009 1Q 1.07 0.90 -4.12 2Q 15.06 14.87 16.32 3Q 13.46 13.27 13.97 4Q 9.00 8.81 7.94 Year 43.81 42.84 37.212008 1Q -13.69 -13.85 -10.18 2Q 3.93 3.75 1.25 3Q -12.74 -12.90 -12.33 4Q -18.81 -18.96 -22.79 Year -36.45 -36.91 -38.442007 1Q -0.47 -0.64 1.19 2Q 9.64 9.45 6.86 3Q 5.30 5.12 4.21 4Q 0.00 -0.17 -0.77 Year 14.91 14.12 11.81

TCW Concentrated Core Strategy PerformanceAS OF JUNE 30, 2018 | SUPPLEMENTAL INFORMATION

Source: TCWPlease see additional disclosures on page 20, which are an integral and important part of this presentation. Individual results may vary. Past performance is no guarantee of future results.Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

TCW Concentrated Core Russell 1000®

Gross Net Growth Index


Gross Net Growth Index TCW Concentrated Core Russell 1000®


2006 1Q -1.55% -1.72% 3.09% 2Q -5.21 -5.38 -3.90 3Q -1.65 -1.82 3.94 4Q 4.29 4.11 5.93 Year -4.29 -4.95 9.072005 1Q -9.46 -9.62 -4.09 2Q 3.95 3.77 2.46 3Q 5.34 5.16 4.01 4Q 5.81 5.63 2.98 Year 4.91 4.19 5.262004 1Q 0.05 -0.12 0.79 2Q 7.12 6.94 1.94 3Q -5.21 -5.38 -5.23 4Q 11.75 11.56 9.17 Year 13.53 12.75 6.302003 1Q 4.37 4.23 -1.07 2Q 20.73 20.58 14.31 3Q 7.94 7.79 3.91 4Q 11.38 11.21 10.41 Year 51.49 50.66 29.752002 1Q -0.06 -0.20 -2.59 2Q -21.29 -21.41 -18.67 3Q -19.67 -19.79 -15.05 4Q 12.67 12.52 7.15 Year -28.81 -29.22 -27.882001 1Q -22.20 -22.32 -20.90 2Q 11.58 11.43 8.42 3Q -25.86 -25.97 -19.41 4Q 26.15 25.99 15.14 Year -18.81 -19.26 -20.42

PRESccs3729 8/24/2018 12

1988 1Q 16.31% 16.16% 3.10% 2Q 10.76 10.61 5.37 3Q 7.21 7.07 -0.43 4Q 1.14 1.00 2.86 Year 39.69 38.94 11.271987 4Q -23.28 -23.40 -23.44


Gross Net Growth Index1 Year 25.87% 24.99% 22.51%3 Years 14.36 13.56 14.985 Years 15.84 15.03 16.367 Years 14.14 13.34 14.8810 Years 12.52 11.74 11.83Since 10/1/87 14.55 13.84 9.47

1994 1Q -2.84% -2.98% -4.41% 2Q -2.64 -2.77 -1.02 3Q 8.20 8.05 7.69 4Q 2.23 2.09 0.75 Year 4.63 4.06 2.661993 1Q 4.89 4.75 -0.84 2Q 4.69 4.54 -1.55 3Q 13.99 13.84 1.48 4Q -0.19 -0.33 3.87 Year 24.93 24.26 2.901992 1Q 0.24 0.10 -4.94 2Q -3.45 -3.58 -1.09 3Q 5.10 4.96 4.40 4Q 14.08 13.93 6.97 Year 16.03 15.40 5.001991 1Q 26.60 26.44 17.94 2Q 3.22 3.08 -0.96 3Q 6.39 6.24 6.99 4Q 15.09 14.94 12.96 Year 60.00 59.16 41.161990 1Q 1.54 1.40 -3.70 2Q 6.06 5.91 10.13 3Q -14.51 -14.64 -15.24 4Q 10.21 10.06 10.95 Year 1.46 0.90 -0.261989 1Q 9.24 9.10 6.95 2Q 9.83 9.68 10.08 3Q 14.43 14.28 12.44 4Q -5.60 -5.73 2.69 Year 29.61 28.91 35.92

TCW Concentrated Core Strategy Performance (CONT’D)AS OF JUNE 30, 2018 | SUPPLEMENTAL INFORMATION


2000 1Q 17.37% 17.22% 7.13% 2Q 0.56 0.42 -2.70 3Q -0.78 -0.91 -5.38 4Q -18.22 -18.34 -21.35 Year -4.22 -4.75 -22.421999 1Q 12.29 12.14 6.36 2Q 3.49 3.35 3.85 3Q -6.70 -6.83 -3.66 4Q 31.80 31.63 25.14 Year 42.89 42.13 33.161998 1Q 19.28 19.12 15.15 2Q 6.10 5.96 4.54 3Q -5.40 -5.53 -9.08 4Q 26.12 25.96 26.74 Year 51.00 50.20 38.711997 1Q 1.18 1.05 0.54 2Q 27.88 27.72 18.91 3Q 18.37 18.21 7.52 4Q -4.23 -4.36 1.52 Year 46.68 45.90 30.491996 1Q 3.57 3.43 5.37 2Q 6.93 6.79 6.36 3Q 5.30 5.16 3.60 4Q 11.27 11.12 6.04 Year 29.76 29.07 23.121995 1Q 13.34 13.19 9.52 2Q 15.48 15.33 9.83 3Q 11.97 11.82 9.08 4Q -1.32 -1.46 4.55 Year 44.63 43.86 37.19

Total Annualized Returns




Gross Net Growth Index TCW Concentrated Core Russell 1000®


PRESccs3729 8/24/2018 13


Gwinnett County Retirement System Historical PerformanceAS OF JULY 31, 2018 | SUPPLEMENTAL INFORMATION

Annualized

ITD Return (%) YTD 2Q18 1 Year 3 Years 5 Years 4/2/13

Gwinnett County Retirement System (Net) 15.0 7.5 23.6 11.7 14.4 14.5 Russell 1000® Growth Index 10.4 5.8 22.8 14.8 15.8 16.3 S&P 500 Index 6.5 3.4 16.2 12.5 13.1 14.0

PRESccs3729 8/24/2018 14

Ten Best Stocks in 2018 (%)

Average Weight Total Return Contribution to ReturnAMZN 6.21 45.35 2.29ADBE 5.23 39.12 1.80CRM 4.96 33.40 1.60NOW 4.04 32.25 1.19V 5.96 16.55 0.98MA 2.56 30.23 0.70SPLK 2.65 19.63 0.65FB 5.75 10.12 0.59TRU 1.99 30.48 0.56BKNG 2.84 16.75 0.49

Ten Worst Stocks in 2018 (%)

Average Weight Total Return Contribution to ReturnCELG 2.44 -23.90 -0.70CB 2.89 -12.12 -0.39MNST 2.43 -9.47 -0.29SBUX 2.64 -13.94 -0.28EQIX 2.72 -4.03 -0.19CXO 1.37 -7.90 -0.11FAST 1.45 -0.85 -0.06APD 1.30 -3.79 -0.02WST 1.42 0.92 -0.02AMT 4.30 2.20 0.01

First Half 2018 Outperformance Driven by Bigger WeightingsJANUARY 1, 2018 THROUGH JUNE 30, 2018 | SUPPLEMENTAL INFORMATION

Source: TCW, FactSetBased upon a representative account. Portfolio characteristics and holdings are subject to change at any time. It should not be assumed that an investment in the securities listed was, or will be, profitable. Please see addi-tional disclosures on page 20, which are an integral and important part of this presentation. Individual results may vary. Past performance is no guarantee of future results. All performance information is represented on a gross basis unless otherwise stated.

+10.86%Average Weighting

4.22%

Average Weighting

2.30%–2.05%

PRESccs3729 8/24/2018 15

2Q 2018: What Helped, What HurtAPRIL 1, 2018 – JUNE 30, 2018 | SUPPLEMENTAL INFORMATION


Five Best Contributors (%) Date 2Q18 2Q18 2Q18 Purchased Average Weight Return Portfolio Impact in Strategy

Facebook, Inc. 5.64 21.61 1.13 October-2014

Amazon.com, Inc. 6.42 17.44 1.05 December-2002

salesforce.com, inc. 4.78 17.26 0.79 October-2005

Adobe Systems Incorporated 5.48 12.82 0.71 February-2016

Visa Inc. 6.02 10.90 0.65 March-2008

Five Worst Contributors (%) Date 2Q18 2Q18 2Q18 Purchased Average Weight Return Portfolio Impact in Strategy

Starbucks Corporation 2.55 -15.17 -0.36 August-2012

Celgene Corporation 2.22 -10.97 -0.27 June-2013

Chubb Limited 2.71 -6.59 -0.18 January-2016

Concho Resources Inc. 1.30 -7.97 -0.11 December-2016

Fastenal Company 0.98 -1.32 -0.08 November-2016

PRESccs3729 8/24/2018 16

Total

Consumer Discretionary -0.46

Consumer Staples 0.31

Energy -0.22

Financials -0.30

Healthcare 0.47

Industrials 1.25

Information Technology 1.23

Materials 0.03

Real Estate -0.32

Telecommunication Services 0.03

Utilities 0.00

Difference

Consumer Discretionary -2.79


Energy -17.56

Financials -1.62

Healthcare 3.89

Industrials 12.56


Materials -4.34

Real Estate -3.57

Telecommunication Services -3.68

Utilities -1.70

2Q 2018: Attribution AnalysisAPRIL 1, 2018 – JUNE 30, 2018 | SUPPLEMENTAL INFORMATION

Source: TCW, FactSetBased upon a representative account. Portfolio characteristics and holdings are subject to change at any time.All performance information is represented on a gross basis unless otherwise stated; net performance is contained in the appendix GIPS performance disclosures.Please see additional disclosures on page 20, which are an integral and important part of this presentation. Individual results may vary. Past performance is no guarantee of future results.Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

Sector Returns (%) Sector Attribution (%)

6.889.67

5.350.61

-7.979.59

-1.70-0.08

9.115.22

9.87-2.69

11.538.61

-1.422.93

1.495.06

0.003.68

0.001.70

TCW Russell 1000 Growth Index ®

-0.38-0.08

0.210.10

-0.240.02

-0.10-0.21

0.460.01

0.640.61

1.160.07

-0.040.07

-0.26-0.06

0.000.03

0.000.00

Security Selection Asset Allocation

18.3714.26

0.74-4.21

-7.903.24

-0.814.21

6.094.97

11.58-2.74

20.8312.35

-3.79-2.88

-0.241.43

0.00-4.74

0.009.15


0.62-0.18

0.270.23

-0.14-0.01

-0.35-0.08

0.110.04

0.740.74

3.200.17

0.020.26

-0.12-0.40

0.000.14

0.000.01


PRESccs3729 8/24/2018 17

2018: What Helped, What HurtJANUARY 1, 2018 – JUNE 30, 2018 | SUPPLEMENTAL INFORMATION


Five Best Contributors (%) Date 2018 2018 2018 Purchased Average Weight Return Portfolio Impact in Strategy

Amazon.com, Inc. 6.21 45.35 2.29 December-2002

Adobe Systems Incorporated 5.23 39.12 1.80 February-2016

salesforce.com, inc. 4.96 33.40 1.60 October-2005

ServiceNow, Inc. 4.04 32.25 1.19 January-2014

Visa Inc. 5.96 16.55 0.98 March-2008

Five Worst Contributors (%) Date 2018 2018 2018 Purchased Average Weight Return Portfolio Impact in Strategy

Celgene Corporation 2.44 -23.90 -0.70 June-2013

Chubb Limited 2.89 -12.12 -0.39 January-2016

Monster Beverage Corporation 2.43 -9.47 -0.29 February-2015

Starbucks Corporation 2.64 -13.94 -0.28 August-2012

Equinix, Inc. 2.72 -4.03 -0.19 July-2012

PRESccs3729 8/24/2018 18

Total

Consumer Discretionary 0.44


Energy -0.16

Financials -0.43

Healthcare 0.15

Industrials 1.48


Materials 0.28

Real Estate -0.52


Utilities 0.01

Difference

Consumer Discretionary 4.12


Energy -11.15

Financials -5.02

Healthcare 1.12

Industrials 14.32


Materials -0.91

Real Estate -1.67


Utilities -9.15

2018: Attribution AnalysisJANUARY 1, 2018 – JUNE 30, 2018 | SUPPLEMENTAL INFORMATION

Source: TCW, FactSetBased upon a representative account. Portfolio characteristics and holdings are subject to change at any time.All performance information is represented on a gross basis unless otherwise stated; net performance is contained in the appendix GIPS performance disclosures.Please see additional disclosures on page 20, which are an integral and important part of this presentation. Individual results may vary. Past performance is no guarantee of future results.Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

18.3714.26

0.74-4.21

-7.903.24

-0.814.21

6.094.97

11.58-2.74

20.8312.35

-3.79-2.88

-0.241.43

0.00-4.74

0.009.15


0.62-0.18

0.270.23

-0.14-0.01

-0.35-0.08

0.110.04

0.740.74

3.200.17

0.020.26

-0.12-0.40

0.000.14

0.000.01


0.62-0.18

0.270.23

-0.14-0.01

-0.35-0.08

0.110.04

0.740.74

3.200.17

0.020.26

-0.12-0.40

0.000.14

0.000.01


18.3714.26

0.74-4.21

-7.903.24

-0.814.21

6.094.97

11.58-2.74

20.8312.35

-3.79-2.88

-0.241.43

0.00-4.74

0.009.15


Sector Returns (%) Sector Attribution (%)

PRESccs3729 8/24/2018 19

Summary of HoldingsAS OF JUNE 30, 2018 | SUPPLEMENTAL INFORMATION

Source: TCWBased upon a representative account. Portfolio characteristics and holdings are subject to change at any time. Past performance is no guarantee of future results. It should not be assumed that an investment in the securities listed was, or will be, profitable.

Amazon.com, Inc. 6.73

Visa Inc. 6.06

Facebook, Inc. 5.95

Alphabet, Inc. 5.92

Adobe Systems Incorporated 5.51

salesforce.com, inc. 4.96

American Tower Corp. 4.17

ServiceNow, Inc. 3.97

PayPal Holdings, Inc. 3.60

Home Depot, Inc. 2.75

Equinix, Inc. 2.71

Mastercard Incorporated 2.70

Booking Holdings Inc. 2.68

Chubb Limited 2.53

The Charles Schwab Corporation 2.49

Zoetis, Inc. 2.39

Monster Beverage Corporation 2.36

Costco Wholesale Corporation 2.30

TransUnion 2.30

Starbucks Corporation 2.13

Celgene Corporation 2.07

Splunk, Inc. 2.01

Waste Connections, Inc. 2.00

Ulta Beauty Inc. 1.99

BioMarin Pharmaceutical Inc. 1.85

Illumina Inc. 1.83

S&P Global, Inc. 1.73

NVIDIA Corporation 1.69

Alexion Pharmaceuticals, Inc. 1.60

West Pharmaceutical Services, Inc. 1.45

Align Technology, Inc. 1.44

Concho Resources Inc. 1.23

Air Products and Chemicals, Inc. 0.95

Total Equities 96.04

Cash and Accrued Income 3.96

Total Portfolio 100.00

Security % of Portfolio Security % of Portfolio

PRESccs3729 8/24/2018 20

Source: TCWRussell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

TCW Concentrated Core PerformanceASSET-WEIGHTED AND TIME-WEIGHTED RATES OF RETURN

The TCW Group, Inc. is divided into three divisions: the Marketable Securities Division; the Alternative Products Division; and the Managed Accounts Division. On February 23, 2010, The TCW Group, Inc. acquired Metropolitan West Asset Management. On January 1, 2011, the Marketable Securities Division and Metropolitan West Asset Management completed a merger. Accordingly, effective January 1, 2011, Metropolitan West Asset Management was included within the Firm definition.

1. Effective January 1, 2000, the Marketable Securities Division was established to provide investment advisory services in the marketable securities area. *The Marketable Securities Division is defined as the Firm for purposes of reporting performance in accordance with the Global Investment Performance Standards.

2. The Marketable Securities Division of TCW Group, Inc. claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. The Marketable Securities Division has been independently verified for the periods January 2000 through December 2016. The verification reports are available upon request.

Verification assesses whether (1) the Firm has complied with all the composite construction requirements of the GIPS® standards on a firm-wide basis and (2) the Firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards. Verification does not ensure the accuracy of any specific composite presentation.

3. From January 2010 onward, results are for portfolios present for an entire month. Prior to 2010, results were calculated using portfolios present for an entire quarter. The Composite includes all portfolios managed in the strategy, except for those subject to material client restrictions, which are, therefore, deemed non-discretionary.

4. Results are time-weighted and geometrically linked to yield quarterly returns, and include all items of income, gain and loss.

5. Results are based on trade-date transactions.

6. A complete list and description of Firm composites is available upon request.

7. The internal dispersion of annual returns is measured by the standard deviation across asset-weighted portfolio returns represented within the composite for the full year. Periods with five or fewer portfolios are not statistically representative and are not presented.

8. Asset-weighted results use beginning of period market values. Unless stated otherwise, asset-weighted results are shown for the entire period. Equal-weighted results represent the simple average of all composite portfolios present for the entire period.

9. The currency used to express performance is U.S. dollars.

10. Gross results do not reflect the deduction of management fees and other custodial fees. Including these costs would reduce the shown returns. Net results reflect the deduction of the maximum standard fee charged to U.S. institutional clients without taking into account breakpoints. Certain clients could pay a significantly higher or lower fee which would result in different net returns. A fee which is 0.50% higher than the standard U.S. institutional fee will result in the total return being reduced, over five years, by 2.53% on a compound basis. Net results do not include the deduction of custodial fees or other administrative expenses, which will also reduce the returns shown. Prior to August 2010 net returns were calculated arithmetically, afterwards net returns were calculated geometrically.

11. TCW makes no representation that future investment performance will conform to past performance and it should never be assumed that past performance foretells future performance.

12. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

13. There currently is no minimum asset level for portfolios included in the composite. From 2Q 2000 through 3Q 2017 the minimum asset level was $5 million.

14. These results have been prepared and presented in compliance with GIPS® for the periods shown beginning in January 1988. Results prior to this date are not in compliance as we are unable to show “composite as a percentage of Firm assets” information due to the lack of Marketable Securities Division assets data. The first account managed in this fashion and included in the composite had an inception date of October 1, 1987.

15. This GIPS®-compliant composite was created in 1Q 2002.

16. The Composite is composed of portfolios whose objective is to outperform the benchmark over the long term by investing in a concentrated portfolio of large capitalization companies with strong and enduring business models and unique business franchise characteristics. While TCW’s objective is to outperform the stated benchmark, it does not imply that this strategy shall share, or attempt to share, the same or similar characteristics of the benchmark or attempt to track the benchmark.

17. The benchmark is the Russell 1000® Growth. The Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

18. The Composite’s U.S. institutional fee schedule is as follows: 0.70% on all assets

19. Leverage or derivatives are not used in the management of this composite.

20. Withholding tax is not deducted from the portfolios contained in the composite.

21. There are not any known inconsistencies between the local laws that the composite adheres to and the GIPS®.

22. There are not any known inconsistencies between the chosen source of exchange rates and those of the benchmark.

23. The performance of the Concentrated Core composite for the period from inception to March 1998 reflects performance of portfolios greater than $5,000,000 that were managed by Glen Bickerstaff while at Transamerica Investment Services. Thereafter, it represents the performance while at TCW. The original TCW Concentrated Core performance is available upon request. For the period from November 1998 to December 31, 2004, a team of portfolio managers under the guidance and oversight of Glen Bickerstaff, who retained final authority for all buy and sell decisions, were responsible for the Concentrated Core strategy. As of January 1, 2005, Mr. Bickerstaff became senior portfolio advisor to the strategy, and the remaining team members assumed full responsibility for managing the portfolios in the composite. As of February 6, 2008 Craig Blum became sole portfolio manager.

24. The benchmark changed from the S&P 500 to the Russell® 1000 Growth, effective 3Q 2002, because, based on a statistical assessment of the investment style, the new index better reflects the strategy.

25. There currently is no security limitation for portfolios included in the composite. From 1Q 2006 through 3Q 2017 portfolios with a security limitation of 7.5% or less were excluded from the composite. Prior to 1Q 2006, the limitation was 5%.

Total Composite Assets at Composite Composite 3-Year Benchmark 3-Year Total Firm Annual Return Russell 1000® # of End of Period % of Non-Fee Internal Standard Deviation Standard Deviation Assets (MSD)* Gross (%) Net (%) Growth Index (%) Portfolios (U.S.$ millions) Paying Assets Dispersion Annualized Annualized (U.S.$ millions)2008 -36.45 -36.91 -38.44 33 2,961.78 — 0.83 17.35 16.63 52,9192009 43.81 42.84 37.21 29 3,222.99 — 0.74 19.74 20.01 59,1232010 17.75 16.92 16.71 32 2,741.00 — 0.29 21.95 22.42 40,8052011 5.00 4.27 2.64 40 3,450.14 — 0.41 17.04 18.01 81,7642012 16.65 15.84 15.26 39 4,047.40 — 0.24 15.92 15.88 102,4902013 29.97 29.06 33.48 48 5,224.26 — 0.29 12.46 12.35 109,9202014 8.29 7.53 13.05 41 4,677.85 — 0.31 11.87 9.73 144,7682015 12.93 12.14 5.67 34 4,332.24 — 0.25 13.22 10.85 165,0362016 -7.19 -7.84 7.08 32 3,137.40 — 0.50 14.62 11.31 177,1872017 33.44 32.51 30.21 34 3,185.38 — 0.44 13.58 10.69 191,104

PRESccs3729 8/24/2018 21

Appendix

PRESccs3729 8/24/2018 22

Source: Strategas Securities, LLC – Investment Strategy

The Longest (and Most Hated?) Bull Market in History

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

0 20 40 60 80 100 120

)%(

ecn

av

dA t

ekr

aM ll

uB

Bull Market Duration (Months)

S&P 500 Historical Bull Markets1928 to Present

1987 -901966 -68

1970 -73

1962 -66

1957 -61 2002 -07

1942 -46

1974 -80

1982 -87

1949 -56

1932 -37

1990 -00

3/9/09 to Current, 113 Mos, 321%

Average57 Mos, 165%

Flattest Yield Curve Since 2007 is Stoking Concerns of Inversion/Recession…

Source: Bloomberg 8/23/2018

8/23/180.21

-1.0

-0.5

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

1983 1988 1993 1998 2003 2008 2013 2018

U.S. 10 Year Treasury minus 2 Year Treasury YieldRecession Exception: No Recession

23

…and the Fed is Removing Monetary Accommodation and Intends to Continue Hiking Interest Rates

Source: Strategas Research 8/23/2018

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Fed's Balance Sheet: Assets ($ Trillions)

Other

MBS

Treasuries

Forecasted Reduction

June 2010:QE1 Ends

Nov 2010:QE2 Begins

June 2011:QE2 Ends

Sept 2012:QE3 Begins

Jan 2014:Tapering Begins

Oct 2014:QE3 Ends

24

The Rise in Interest Rates May Well Be Signaling an Inflection Point

Source: Strategas Research 8/23/2018

0

2

4

6

8

10

12

14

16

18

1/1945 2/1949 3/1953 4/1957 5/1961 6/1965 7/1969 8/1973 9/1977 10/1981 11/1985 12/1989 1/1994 2/1998 3/2002 4/2006 5/2010 6/2014 7/2018

(%)

U.S. 10-Year YieldMonthly, Since 1945

As of July 31, 2018

Bonds Bear Market~35 Years

Bonds Bull Market~35 Years

25

A Rise in Interest Rates to More Normalized Levels is Not Necessarily Bad for Stocks

Source: Credit Suisse 5/2/2018

Equity Sensitivity to Treasury Yields (10-Year), 1991-Present

26

The Potential “Tariff War” Headwind Pales in Comparison to an Estimated $800 Billion in Fiscal Stimulus

*Additional tariff amount if tariff rates increased from 10% to 25% on the $200bn worth of goods in both Round 2 and Round 3Source: Strategas Research 8/23/2018

7.5 7.5 12.5 12.520 20 20 2030 30 30 30

200

100

500

0

100

200

300

400

500

600

Steel 232 232 Retaliation China 301 301 Retaliation{e}

China 301 301 Retaliation{e}

China 301 301 Retaliation{e}

Tax Cuts Spending Repats{e}

1st Round 2nd Round 3rd Round

Comparing the Size of Tariffs with Incremental Fiscal Policy, CY2018, $Billion

Tariff Additional Tariff* Fiscal Policy

Tariffs Estimated = $120‐240B

Fiscal Policy = $800B

27

U.S. Equity Market Returns Reverting to Mean After the Extraordinary 2008 Financial Crisis

10.67%

Average10.3%

-10%

-5%

0%

5%

10%

15%

20%

25%

Jul-38 Jul-48 Jul-58 Jul-68 Jul-78 Jul-88 Jul-98 Jul-08 Jul-18

Rolling 10-Year S&P 500 Returns Since 1928

S&P Total Return Average

20 years 26 years 4 years

Source: Factset 5/7/2018

28

PRESccs3729 8/24/2018 29

Secondary index definition, (primary index definition is found on the GIPS® disclosure page in the appendix) S&P 500 Index – A capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.

This material is for general information purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any issuers or securities noted in this document are provided as illustrations or examples only, for the limited purpose of analyzing general market or economic conditions and may not form the basis for an investment decision, nor are they intended to serve as investment advice. Any such issuers or securities are under periodic review by the portfolio management group and are subject to change without notice. TCW makes no representation as to whether any security or issuer mentioned in this document is now in any TCW portfolio. TCW, its officers, directors, employees or clients may have positions in securities or investments mentioned in this publication, which are subject to change without notice. Any information and statistical data contained herein derived from third party sources are believed to be reliable, but TCW does not represent that they are accurate, and they should not be relied on as such or be the basis for an investment decision.

An investment in the strategy described herein has risks, including the risk of losing some or all of the invested capital. An investor should carefully consider the risks and suitability of an investment strategy based on their own investment objectives and financial position. There is no assurance that the investment objectives and/or trends will come to pass or be maintained. The information contained herein may include preliminary information and/or “forward-looking statements.” Due to numerous factors, actual events may differ substantially from those presented herein. TCW assumes no duty to update any forward-looking statements or opinions in this document. This material comprises the assets under management of The TCW Group, Inc. and its subsidiaries, including TCW Investment Management Company LLC, TCW Asset Management Company LLC, and Metropolitan West Asset Management, LLC. Any opinions expressed herein are current only as of the time made and are subject to change without notice. The investment processes described herein are illustrative only and are subject to change. Past performance is no guarantee of future results. © 2018 TCW

ONE NORTH FRANKLIN STREET, SUITE 3300, CHICAGO, IL 60606

Gwinnett County Defined Benefit Plan

Investment Manager Panel

September 14, 2018

TABLE OF CONTENTS

FAIRPOINTE CAPITAL OVERVIEW 2

INVESTMENT PHILOSOPHY 4

GWINNETT COUNTY INVESTMENT GUIDELINES 1

PERFORMANCE 5

PORTFOLIO POSITIONING 7

OUTLOOK 12

FAIRPOINTE CAPITAL ADVANTAGE 13

BIOGRAPHIES 14

HISTORICAL PERFORMANCE 16

11

GWINNETT COUNTY INVESTMENT GUIDELINES *

Equity Portfolio Performance Guidelines

1. This portion of the portfolio will be judged against the benchmark (net of fees) over each trailing three and five year period ormarket cycle or another appropriate benchmark which more closely resembles the overall character of the Investment Manager’sequity portfolio.

2. In addition, it is expected that an Investment Manager’s equity returns will rank above the median (fiftieth percentile) versus arepresentative database over each trailing three and five year period or market cycle.

Equity Portfolio Investment Restrictions

1. For diversification purposes each Investment Manager’s portfolio should have in excess of 25 positions. No more than 5% of the equityportfolio shall be invested in any one issue, based on cost value.

2. There shall be no purchase that would cause a position in the portfolio to exceed 5% of the issue outstanding, based on cost value.

3. There shall be no investments in non-marketable or illiquid securities.

4. Each Investment Manager may employ market-timing decisions through cash management.

5. Leverage techniques, private placements, short techniques or any direct participation plans cannot be used.

6. All investment must be eligible investments under the Public Retirement Systems Investment Authority Law, O.C.G.A. § 47-20-80 et

seq.

Categories of Investment Securities

1. Domestic common stocks

2. Foreign common stocks traded on U.S. Exchanges

3. Convertible preferred and convertible debt securities

4. Futures, options or other instruments designed to manage risk exposure

5. Exchange Traded Funds (ETFs)

6. Open and closed end mutual funds

7. Commingled funds and trusts

*Taken from pages 7 and 8 of “Statement of Investment Objectives and Guidelines”, Gwinnett County Public Employees Retirement System

12

FAIRPOINTE CAPITAL OVERVIEW

Fairpointe Capital LLC is an independent, registered investment advisor located in Chicago, Illinois. The firm is 100% Employee-Owned, Majority Female-Owned and a certified WBENC business.

Strategies: Mid-Cap Equity

ESG Equity

Sub-advisor: AMG Managers/Fairpointe Mid Cap Fund

AMG Managers/Fairpointe ESG Fund

Parvest Equity USA Mid Cap Fund (available to non-U.S. investors)

Firm assets: $4.2 billion as of July 31, 2018

Certified by The Women's Business Enterprise National Council which is the largest third-

party certifier of businesses owned, controlled, and operated by women in the United

States.

FAIRPOINTE CAPITAL ORGANIZATION

3

15 employees; 7 investment professionals with an average of 29 years of industry experience

No changes to the Mid-Cap team

ESG Equity Strategy launched January 1, 2018

Frances Tuite, ESG Portfolio Manager, hired October 2017

INVESTMENT PHILOSOPHY

4

INVESTMENT CRITERIA

We utilize a disciplined, fundamental bottom-up, valuation-based process to select companies that areinefficiently priced relative to the earnings growth outlook over the next three to five years. We havea preference for companies with products and services that make their customers more efficient orprofitable, and are critical to their success. We look for:

Compelling business model

Attractive valuation

Financial strength

Effective management

SELL DISCIPLINE

Stock exceeds valuation

Deterioration in earnings expectations or other fundamentals

Replaced with a more attractive idea

Portfolio re-balancing based on valuation

PERFORMANCE - GWINNETT COUNTY JULY 31, 2018

5

1 Year 3 Years 5 YearsSince

Inception

Gwinnett County Portfolio 4.11% 8.80% 8.96% 12.62%

Russell MidCap Index 13.45% 10.21% 11.51% 13.14%

S&P 500 Index 16.24% 12.52% 13.12% 13.92%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

*

PERFORMANCE - GWINNETT COUNTY JULY 31, 2018

6

* Since Inception 3/30/2012; portfolio performance net of fees

Annualized

1 Year - Top 3 Contributors Total Return

Cree, Inc. 82.0%

Akamai Technologies 59.7%

Time, Inc. 32.4%

1 Year – Top 3 Detractors Total Return

Office Depot, Inc. -55.7%

Patterson Companies -39.0%

Tegna, Inc. -23.9%

Source: S&P CapIQSource: S&P CapIQ

TOP TEN HOLDINGS – GWINNETT COUNTY JULY 31, 2018

7

High Conviction, Concentrated Portfolio

Security Russell Sector % of Portfolio

McDermott Intl Energy 3.96

Mattel Consumer Discretionary 3.50

Hormel Foods Consumer Staples 3.46

Juniper Networks Technology 3.25

Teradata Corp. Technology 3.19

Stericycle Producer Durables 3.13

Tegna Consumer Discretionary 3.09

Domtar Corp. Materials & Processing 2.95

New York Times Consumer Discretionary 2.92

Northern Trust Corp. Financial Services 2.66

Total 32.11

HOLDINGS BY SECTOR – GWINNETT COUNTY JULY 31, 2018

8

Index Agnostic, Actively Managed Portfolio

Russell Sector Under/Over


Consumer Staples

Technology

Producer Durables

Energy

Materials & Processing

Health Care

Utilities

Financial Services -20.2%

-6.4%

-1.5%

0.3%

0.6%

1.0%

2.7%

4.2%

19.5%

PORTFOLIO CHANGES – GWINNETT COUNTY AUGUST 1, 2017 – JULY 31, 2018

9

NEW POSITIONSNEW POSITIONS

ELIMINATED POSITIONSELIMINATED POSITIONS

Security Ticker Date Initiated

ManpowerGroup MAN 7/20/2018

Meredith Corp. MDP 2/12/2018

Molson Coors Brewing TAP 4/30/2018

Owens Corning OC 7/31/2018

Security Ticker Date Eliminated

Adtalem Global Education ATGE 6/21/2018

Chicago Bridge & Iron (acquired) CBI 5/11/2018

Time, Inc. (acquired) TIME 2/1/2018

Transocean Ltd RIG 12/1/2017

* Chicago Bridge & Iron (CBI) was acquired by another holding McDermott on 5/11/2018. Time, Inc. (TIME) was acquired by Meredith Corp., a new holding.

*

*

PORTFOLIO HOLDINGS – GWINNETT COUNTY JULY 31, 2018

10

Energy Producer Durables

BorgWarner 1.0% McDermott Intl 4.0% AGCO Corporation 1.7%

Cars.com 2.3% TechnipFMC 2.0% Arconic Inc 2.2%

Cooper Tire & Rubber 2.5% 5.9% Copa Holdings 1.7%

Gentex Corp 2.5% Donaldson Inc 1.0%

Interpublic Group 1.4% Itron Inc. 1.2%

LKQ Corp 2.4% Cincinnati Financial 1.3% ManpowerGroup 0.5%

Lear Corp 1.4% Northern Trust Corp 2.7% Stericycle 3.1%

Lions Gate Entertainment Cl A/B 3.0% Raymond James Financial 2.1% Werner Enterprises 2.0%

Mattel 3.5% 6.1% 13.6%

Meredith Corp 2.2%

New York Times 2.9%

Office Depot Inc 1.6% Patterson Companies Inc 2.6% Akamai Technologies 2.4%

Scholastic 1.3% Quest Diagnostics 1.9% Cree, Inc. 2.2%

Tegna 3.1% Varex Imaging Corp 0.8% Jabil Inc 2.4%

Whirlpool 2.1% Varian Medical Systems 2.4% Juniper Networks 3.2%

33.4% 7.6% Nuance Communications 1.7%

Teradata Corp 3.2%

Materials & Processing Unisys Corporation 1.2%

Bunge Ltd. 2.6% Domtar Corp. 3.0% 16.4%

Hormel Foods 3.5% FMC Corporation 1.8%

Molson Coors Brewing 2.0% Gerdau S A Sponsored ADR 1.5% Cash & Equivalents

8.1% Owens Corning 0.5% Cash & Equivalents 2.1%

6.8%

Consumer Staples

Technology


Financial Services

Health Care

Please note that you should receive periodic account statements directly from your custodian no less than on a quarterly basis. We urge you to compare the account statements you receive from your

custodian with those statements and reports you receive from us. Also, in the event you do not receive account statements directly from your custodian on at least a quarterly basis, you should

promptly notify us as well as notifying your custodian directly.

Sectors represented are Russell Global Sectors (RGS)

PORTFOLIO FUNDAMENTALS – GWINNETT COUNTY JULY 31, 2018

11

Compelling Portfolio Positioning

Strong Business Model

Financial Strength

Attractive Valuation

2.2

1.4

15.9

1.7

1.3

15.4

1.4

1.4

15.5

0.8

1.2

13.2

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

Price/Revenue (TTM)

2019 P/E to Long-TermEarning Growth Rate

2019 Calendar P/E

Gwinnett County Portfolio S&P 400 Index ETF Russell MidCap S&P 500 Index ETF

12%

16%

39%

12%

14%

47%

11%

13%

45%

11%

12%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Long-Term ConsensusEarnings Growth

Return on Equity 5-YearAverage

Long-Term Debt as a % ofCapitalization

Source: Zacks

OUTLOOK

12

Fairpointe considers itself a core manager with a value bias. The portfolio isdeliberately positioned in the value category right now given the length of theeconomic cycle and stretched valuations.

The portfolio is trading at a discount to the benchmarks on a price-to-earningsmultiple and is set to deliver both earnings growth and multiple expansion inthe coming quarters.

With a focus on market leading midcap companies with strong balance sheets,there are a number of holdings that have been in the news about potentialbuyouts.

We continue to find new positions that will deliver long-term performance.

FAIRPOINTE CAPITAL ADVANTAGE

13

Investment Consistency – An actively managed, mid-cap core strategy, utilizingthe same investment philosophy and process for over 19 years; index agnostic.

• Long-term investment horizon

• Management Engagement

• Valuation Focus

Team Continuity and Commitment – An experienced and dedicated investmentteam.

• Thyra Zerhusen, Marie Lorden and Mary Pierson have been togethersince 2004. Jean Orr, CFA, Director of Research, joined in 2012; BrianWashkowiak, CFA, Portfolio Manager, joined in 2015 (previously workedwith Ms. Zerhusen on strategy in 2000-2003).

• All team members are invested in the strategy.

FAIRPOINTE CAPITAL MID-CAP TEAM

FAIRPOINTE CAPITAL MID-CAP TEAMThyra E. Zerhusen

CEO and Chief Investment Officer – Ms. Zerhusen is the principal founder of Fairpointe Capital LLC, CEO and Chief Investment Officer of the firm. She is part of theMid-Cap Investment Team, serving as lead portfolio manager for the mid-cap and focused equity strategies, including the AMG Managers Fairpointe Mid Cap Fund,the AMG Managers Focused Equity Fund, the Parvest Equity USA Mid Cap Fund, and institutional separate accounts.

Prior to founding Fairpointe Capital, Ms. Zerhusen was the Chief Investment Officer for Mid-Cap Equities at a predecessor firm beginning in October of 2003. Ms.Zerhusen also spent four years at Talon Asset Management as Senior Vice President and Portfolio Manager, where she began managing the Aston (now AMG) Mid CapFund. She has managed the fund without interruption for eighteen years, thus preserving the long-term track record. Previously, she was employed by TheBurridge Group as principal and portfolio manager for a tax-sensitive mid-cap product, and spent eleven years as Senior Investment Analyst at Sears InvestmentManagement Company. Ms. Zerhusen started her career as an Investment Research Officer at Harris Trust & Savings Bank in Chicago and was responsible for in-depth financial analysis of company fundamentals and industry trends. She has been a guest on Wall Street Week with Louis Rukeyser, CNNfn’s MutualFundamentals, Bloomberg, and CNBC. Ms. Zerhusen received a Diplom Ingenieur from the Swiss Federal Institute of Technology with concentrations in life sciences,biotechnology, and economics. She has an M.A. in Economics from the University of Illinois. She is also a member of the CFA Society. Primarily educated inSwitzerland, Ms. Zerhusen is fluent in English, French, and German.

Mary L. Pierson

Co-CEO and Portfolio Manager – Ms. Pierson is a co-founder of Fairpointe Capital LLC and Co-CEO. She is part of the Mid-Cap Investment Team, serving as co-portfolio manager for the mid-cap strategy, including the AMG Managers Fairpointe Mid Cap Fund, the Parvest Equity USA Mid Cap Fund, and institutional accounts.

Prior to co-founding Fairpointe Capital, Ms. Pierson served as a member of the Mid-Cap Investment Team for seven years. She co-managed the Aston (now AMG) MidCap Fund, the Parvest Equity USA Mid Cap Fund and separately managed institutional accounts, as well as providing research and analysis of existing and potentialmid-cap equity holdings. Ms. Pierson’s prior experience includes fifteen years with Harris Bancorp and Harris Futures Corporation, a wholly-owned subsidiary.While serving as General Manager at Harris Futures Corporation, she was responsible for managing all aspects of the institution, which operated as a financialfutures broker. In prior positions at Harris, Ms. Pierson conducted in-depth international economic research and analysis of foreign exchange exposure issues, alongwith currency trends and foreign political conditions related to investments. Ms. Pierson received a B.A. in Economics from DePauw University, an M.A. inEconomics from Northwestern University, and an M.B.A. in Finance from The University of Chicago.

Brian M. Washkowiak, CFA

Portfolio Manager - Mr. Washkowiak is part of the Mid-Cap Investment Team, serving as co-portfolio manager for the mid-cap and focused equity strategies,including the AMG Managers Fairpointe Mid Cap Fund, Parvest Equity USA Mid Cap Fund, and institutional and private client accounts. His responsibilities includeinvestment research and portfolio management.

Prior to joining Fairpointe Capital LLC in 2015, Mr. Washkowiak managed a fund at BW Opportunity Partners, LP, focusing on small and mid-cap investments. Healso spent thirteen years as a research analyst and portfolio manager at Talon Asset Management, Inc. and was a member of the investment committee. At Talon,Mr. Washkowiak worked with Ms. Zerhusen as an analyst and assistant portfolio manager on the mid-cap strategy. He started his career at Duff & Phelps, LLC as ananalyst in its consulting group. Brian received a B.A. in Finance from Illinois State University and is a Chartered Financial Analyst (CFA).

14

Marie L. Lorden

Co-Founder and Portfolio Manager – Ms. Lorden is a co-founder of Fairpointe Capital LLC. She is part of the Mid-Cap Investment Team, serving as co-portfoliomanager for the mid-cap and focused equity strategies, including the AMG Managers Fairpointe Mid Cap Fund, the Parvest Equity USA Mid Cap Fund, andinstitutional and private client accounts.

Prior to co-founding Fairpointe Capital, Ms. Lorden served as a member of the Mid-Cap Investment Team for eight years. She co-managed the Aston (now AMG) MidCap Fund, the Parvest Equity USA Mid Cap Fund, and institutional and private client accounts, as well as providing research and analysis of existing and potentialmid-cap equity holdings. Ms. Lorden held positions specializing in equity product analysis with Zurich Insurance Group, Driehaus Capital Management, and TheBurridge Group, where she was responsible for mid-cap equity maintenance research and institutional client service relationships. At The Burridge Group, Ms.Lorden worked with Ms. Zerhusen on the firm’s mid-cap strategy. Previously, she was a Project Manager at Radio Free Europe in Prague, where she was responsiblefor analysis of registration options for the Radio’s international bureau locations. Ms. Lorden received a B.S. from Elmhurst College and an M.B.A. from the KellerGraduate School of Management.

Jean W. Orr, CFA

Director of Research – Ms. Orr serves as a member of the Mid-Cap Investment Team. She is responsible for fundamental research of current portfolio companies andpotential new investments.

Before joining Fairpointe Capital LLC in 2012, Ms. Orr was a senior research analyst with Nutmeg Securities, LLC. Ms. Orr spent thirty years with major Wall Streetfirms including Smith Barney, Drexel Burnham and A. G. Edwards and with boutique firms Labé, Simpson & Company and Bluestone Capital. Prior to that Ms. Orrmanaged equity investments as an analyst and portfolio manager with Penmark Investments. Ms. Orr received a B.A. in Economics from the University of Illinois, anM.B.A. in Finance from the University of Chicago and is a Chartered Financial Analyst (CFA).

Sara E. Hostalet

Research Associate – Ms. Hostalet is responsible for supporting the Director of Research and the Mid-Cap team with documentation and fundamentalanalysis of companies. Prior to her position as Research Associate at Fairpointe Capital LLC, Ms. Hostalet worked as an Executive Assistant at the firmproviding finance and marketing support, including responding to RFPs for the Mid-Cap product. Ms. Hostalet earned a B.A. in Economics from EmoryUniversity and has been with Fairpointe since May, 2011. Ms. Hostalet is a 2017 Level III Candidate in the CFA Program.

Cynthia A. Bolender

Sr. Portfolio Administrator – Ms. Bolender joined Fairpointe Capital LLC in May of 2011 and serves as the Senior Portfolio Administrator for the Mid-Cap and FocusedEquity Portfolio Management teams. Prior to joining Fairpointe, Ms. Bolender was employed at a predecessor firm working with the Mid-Cap Team in the samecapacity. Her prior experience also includes five years at Leonetti & Associates, Inc., as a Portfolio Accountant with back office and client reportingresponsibilities.

Sophia A. Erskine

Portfolio Administrator – Ms. Erskine joined Fairpointe Capital LLC in September of 2015 and serves as Portfolio Administrator for the Mid-Cap and Focused EquityPortfolio Management teams. Prior to joining Fairpointe, Ms. Erskine was a senior portfolio analyst for BNY Mellon Wealth Management. In this role, she supportedthe team’s portfolio managers in all aspects of meeting clients’ investment and wealth management objectives. Ms. Erskine has more than 26 years of financialindustry experience. Her career at BNY Mellon Wealth Management began with the acquisition of Talon Asset Management, LLC on July 1, 2011. At Talon, Ms.Erskine served as a senior assistant portfolio manager for client services. Sophia received a B.S. in Economics from Northern Illinois University.

15

FAIRPOINTE CAPITAL MID-CAP TEAM

HISTORICAL MID-CAP PERFORMANCE

MID-CAP COMPOSITE ANNUAL PERFORMANCE*

17

The above information is supplemental to a full presentation of the Mid-Cap Composite.Further disclosures are found on page 19.

* Net of Fees ** Performance represented from April 1, 1999

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999**

Fairpointe Mid-Cap Composite* 12.01% 24.59% -10.42% 9.97% 44.58% 16.83% -6.10% 23.50% 65.03% -42.53% 13.02% 21.27% 1.83% 19.74% 42.22% -16.29% 14.81% 28.20% 23.00%

S&P 400 MidCap Index 16.24% 20.74% -2.18% 9.77% 33.50% 17.88% -1.73% 26.64% 37.38% -36.23% 7.98% 10.32% 12.56% 16.48% 35.62% -14.51% -0.60% 17.51% 22.54%

Russell MidCap Index 18.52% 13.80% -2.44% 13.22% 34.76% 17.28% -1.55% 25.48% 40.48% -41.46% 5.60% 15.26% 12.65% 20.22% 40.06% -16.19% -5.62% 8.25% 18.79%

S&P 500 Index 21.83% 11.96% 1.38% 13.69% 32.39% 16.00% 2.11% 15.06% 26.46% -37.00% 5.49% 15.80% 4.91% 10.88% 28.68% -22.06% -11.93% -9.10% 15.30%

-60%

-40%

-20%

0%

20%

40%

60%

80%

MID-CAP COMPOSITE RETURNS*

18

The above information is supplemental to a full presentation of the Mid-Cap Composite.Further disclosures are found on page 19.

* Net of Fees ** Performance represented from April 1, 1999

MONTHLY RETURNS 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999**

January 5.5% 3.1% -9.1% -3.6% -1.8% 8.6% 7.5% 1.2% -2.2% -7.2% -5.5% 2.6% 8.1% -2.6% 5.7% -0.1% 0.9% 13.0% -3.6%

February -6.2% 2.3% 5.8% 6.8% 5.9% 0.7% 3.5% 4.8% 3.8% -8.8% 0.3% 0.9% -2.5% 2.3% 2.9% -3.8% -4.0% -6.5% 2.5%

March -3.5% 0.6% 7.7% -0.5% 1.0% 5.2% 1.7% 1.3% 6.7% 10.6% -3.4% 0.0% 0.8% -1.1% 0.7% -3.7% 6.1% -5.1% 11.1%

April -1.3% -1.0% 0.9% 1.8% -0.9% 0.1% -3.9% 0.3% 2.7% 17.7% 7.1% 2.5% -0.3% -5.6% -1.3% 12.4% -3.0% 4.8% 2.5% 10.6%

May 1.7% -1.6% -1.2% -0.2% 2.0% 6.3% -8.2% -1.9% -8.5% 6.4% 6.4% 5.5% 0.4% 4.1% 1.5% 13.0% 0.1% 2.5% 3.7% 3.8%

June 0.5% 1.8% -2.6% -3.8% 4.2% 0.0% 6.8% -1.3% -5.4% -1.7% -6.2% 1.2% -2.4% -0.8% 3.4% 2.5% -11.4% 0.0% 1.9% 4.0%

July 0.5% 8.3% -3.6% -2.1% 7.5% -1.3% -5.8% 6.5% 10.8% -4.0% -2.9% -2.0% 4.4% -8.4% 3.5% -13.3% -2.6% 0.9% -2.4%

August -3.7% 0.0% -6.9% 3.5% -4.5% 5.7% -8.2% -6.0% 5.4% 0.7% -1.0% 3.2% 2.2% -0.6% 3.0% 2.3% -0.1% 3.2% -7.0%

September 4.3% 1.0% -5.1% -6.0% 5.4% 2.0% -11.3% 13.4% 9.7% -13.5% 3.5% 2.7% -1.4% 2.5% -1.7% -9.1% -12.5% -3.0% 0.9%

October -2.9% -0.4% 8.2% 1.5% 2.7% -2.2% 17.1% 2.1% -2.8% -25.2% 6.5% 5.9% -5.7% 2.7% 6.4% 11.2% 7.1% 0.8% -2.6%

November 6.8% 11.6% 1.8% 2.8% 1.8% 2.5% -0.9% 3.0% 3.5% -9.3% -5.4% 3.7% 6.4% 6.8% 1.8% 13.0% 11.9% -4.0% 5.8%

December 1.6% 1.9% -4.6% 0.1% 4.4% 2.6% 1.2% 7.5% 11.1% 3.5% -0.3% 2.5% 0.4% 3.1% 3.8% -6.4% 4.6% 10.4% 9.2%

QUARTERLY RETURNS 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999**

First Quarter -4.6% 6.1% 3.6% 2.4% 5.0% 15.0% 13.2% 7.4% 8.4% -6.3% -8.4% 3.5% 6.2% -1.4% 9.4% -7.4% 2.7% 0.3% 9.8%

Second Quarter 0.9% -0.8% -2.9% -2.2% 5.3% 6.5% -5.7% -2.9% -11.0% 23.2% 6.9% 9.4% -2.3% -2.5% 3.6% 30.3% -14.0% 7.4% 8.3% 19.3%

Third Quarter 0.9% 9.3% -14.8% -4.7% 8.2% 6.4% -23.3% 13.4% 28.1% -16.3% -0.5% 3.9% 5.2% -6.6% 4.9% -19.4% -14.9% 1.0% -8.4%

Fourth Quarter 5.4% 13.3% 5.0% 4.4% 9.1% 2.9% 17.4% 12.9% 11.7% -29.9% 0.4% 12.6% 0.7% 13.0% 12.4% 17.7% 25.3% 6.8% 12.5%

ANNUAL RETURNS 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999**

Mid-Cap Composite 12.0% 24.6% -10.4% 10.0% 44.6% 16.8% -6.1% 23.5% 65.0% -42.5% 13.0% 21.3% 1.8% 19.7% 42.2% -16.3% 14.8% 28.2% 23.0%

MID-CAP COMPOSITE RETURNS*

19

* Information presented prior to May 1, 2011 pertains to portfolios managed by the Portfolio Managers while affiliated with prior firms. The presentation conforms to GIPS® guidelines regarding the portability of investment results.N.A. – Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.

Mid-Cap Composite contains fully discretionary equity accounts that follow the mid-cap style. Mid-Cap Composite represents portfolios that seek long-term total return through capital appreciation by investing primarily inmid-cap stocks. For comparison purposes the composite is measured against the S&P MidCap 400 and Russell MidCap indices. The S&P MidCap 400 is a market value weighted total return index that represents theperformance of the medium-capitalization sector of the U.S. Securities market. The Russell MidCap is a market value weighted total return index that represents the midcap segment which measures the performance ofthe 800 smallest companies in the Russell 1000 index. Both indices are representative of the types of equity assets invested by Fairpointe Capital. Market indices are unmanaged and do not reflect the deduction of fees.You cannot invest in an Index and the performance of the Index does not represent the performance of any specific investment. The minimum account size for this composite is $2.5 million. Prior to May 1, 2011 the accountminimum was $5 million. Effective March 31, 2013, the account minimum has gone back to $5 million.

Fairpointe Capital LLC (Fairpointe) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Fairpointe has beenindependently verified for the periods May 1, 2011 through June 30, 2018.

Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate andpresent performance in compliance with the GIPS standards. The Mid-Cap composite has been examined for the periods May 1, 2011 through June 30, 2018. The verification and performance examination reports areavailable upon request.

Fairpointe Capital is an independent registered investment adviser. The firm maintains a complete list of composite descriptions which are available upon request. Please send inquiries [email protected] or call 312-477-3300.

Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results. Market, economic, company, and industryspecific conditions are considered during the investment selection process. This was a period of generally rising security prices.

The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all dividends, capital gains, and other earnings. Gross returns will bereduced by investment advisory fees and other expenses that may be incurred in the management of the account. Net of fee performance is calculated using actual fees. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

The investment management fee schedule for the composite was 1.0% on the first $10 million and 0.65% on the remainder. Effective March 31, 2013, the fee schedule is 0.85% on the first $10 million and 0.65% on theremainder. Actual investment advisory fees incurred by clients may vary.

The three-year annualized ex-post standard deviation - December 31, 2017 - composite is 15.71% and 10.91% S&P MidCap and 10.36% Russell MidCap; December 31, 2016 - composite is 15.87% and 12.23% S&P MidCap and11.55% Russell MidCap; December 31, 2015 - composite is 14.30% and 11.70% S&P MidCap and 10.85% Russell MidCap; December 31, 2014- composite is 13.4% and 11.1% S&P MidCap and 10.1% Russell MidCap; December 31,2013 - composite is 18.4% and 15.0% S&P MidCap and 14.0% Russell MidCap; December 31, 2012 - composite is 20.6% and 17.9% S&P MidCap and 17.2% Russell MidCap; December 31, 2011 - composite is 25.0% and 21.9% S&PMidCap and 21.6% Russell MidCap, respectively.

The Mid-Cap Composite was created May 1, 2011. Performance presented prior to May 1, 2011 occurred while the Portfolio Managers were affiliated with prior firms and the Portfolio Managers were the only individualsresponsible for selecting the securities to buy and sell.

Gross Net

2017 5,415 5,091 Seven 12.87% 12.01% 16.24% 18.52% 0.27%

2016 5,178 4,844 Eight 25.56% 24.59% 20.74% 13.80% 0.41%

2015 5,607 5,308 Eight (9.74%) (10.42%) (2.18%) (2.44%) 0.81%

2014 7,733 7,389 Seven 10.79% 9.97% 9.77% 13.22% 0.38%

2013 6,999 6,692 Seven 45.67% 44.58% 33.50% 34.76% 1.00%

2012 3,853 3,633 Six 17.76% 16.83% 17.88% 17.28% N.A.

2011 3,398 3,210 Five or Fewer (5.36%) (6.10%) (1.73%) (1.55%) N.A.

2010* - 2,871 Five or Fewer 24.49% 23.50% 26.64% 25.48% N.A.

2009* - 1,493 Five or Fewer 66.28% 65.03% 37.38% 40.48% N.A.

2008* - 722 Five or Fewer (42.05%) (42.53%) (36.23%) (41.46%) N.A.

Russell

MidCap

Composite

Dispersion

Year

End

Total Firm

Assets

(USD)

(millions)

Composite

Assets

(USD)

(millions)

Composite

Number

of Accounts

Annual Performance

Results

Composite S&P

MidCap

Gwinnett County Defined Benefit Plan Master TrustHigh Quality Small Cap

Second Quarter 2018Portfolio Review

Chip Reed, CFAManaging Director, Principal(404) [email protected]

Cheryl InnerarityPortfolio Administrator(404) [email protected]

Your Atlanta Capital Team

1075 Peachtree Street NE │ Suite 2100 │ Atlanta │ GA │ 30309

September 14, 2018

Investment Franchises($21.7 Billion)

Atlanta Capital Management Co., LLCAs of June 30, 2018

• Founded in 1969 in Atlanta, Georgia

• Singular focus on High Quality stocks and bonds

• Owned by employees & Eaton Vance Corporation

• Employ 40 professionals (17 are equity partners)

Growth Equity 14%

Fixed Income

78%

8%

Core Equity82% 13%

5%

0%Select Equity

$817 mm

SMID Cap $13.9 bn

Small Cap$2.2 bn

Core Equity Management($17.0 Billion)

Assets under management

2

Seasoned & Stable Investment Team

• Portfolio managers are generalists and serve as both research analyst and portfolio manager• Our team does not rely on a research staff to generate ideas or perform fundamental research• Each portfolio manager conducts his own research while decisions are made on a consensus basis

Portfolio Managers

Investment Specialist

A focused team that combines the benefit of conducting independent fundamental research with the ability to make timely investment decisions.

Years industry experience as of 6/30/18 │ year joined Atlanta Capital.

Bill Bell, CFA23 Yrs │ 1999

Chip Reed, CFA29 Yrs │ 1998

Matt Hereford, CFA23 Yrs │ 2002

Bill Bell, CFA23 Yrs │ 1999

Michael Jaje, CFA23 Yrs │ 2014

3

Consistent Growth & Stability in EarningsKey Tenet of Our Investment Philosophy

Earnings Stability Avg. 5-Year CAGR Earnings Variability # Positive Periods # Negative PeriodsAbove-Average 6.9% 1.7% 120 or 100% 0 or 0%Below-Average 3.9% 3.4% 105 or 88% 15 or 12%

*Time period: January 1, 1988 – December 31, 2017. The Earnings Stability portfolios are model portfolios formed and rebalanced monthly by Atlanta Capital based on the stocks in the Russell 2000® Index sorted by quality rankings. This information isprovided for illustrative purposes only and does not reflect the results of any strategy managed by Atlanta Capital. The Above-Average Earnings Stability and Below-Average Earnings Stability portfolios are provided to compare the aggregate of all companies inthe index with High Quality S&P Rankings (B+ or Better) to those with Low Quality S&P Rankings (B or Below). The universe includes all Russell 2000® Index constituents with S&P Quality Rankings and prices greater than $1. Five-year historical earnings growth ratesare calculated using a market capitalization-weighted methodology. The Russell 2000® Index is a widely-accepted measure of the U.S. small cap stock market. Indexes are unmanaged and it is not possible to directly invest in an index. The Above-Average EarningsStability and Below-Average Earnings Stability portfolios were derived in part from the Russell Index Data and Frank Russell Company remains the source and owner of the Russell Index Data contained or reflected and all trademarks and copyrights. Sources: Russell,Standard & Poor’s, Wilshire Atlas, Atlanta Capital. The material is based upon information that Russell, S&P, Wilshire and Atlanta Capital considers to be reliable, but neither Russell, S&P, Wilshire nor Atlanta Capital warrants its completeness, accuracy or adequacy andit should not be relied upon as such. The material should not be considered investment advice or a recommendation to invest in a particular strategy. Reproduction or redistribution of this page in any form without express permission from Atlanta Capital isprohibited. Above-average earnings stability does not guarantee outperformance. Past performance does not predict future results.

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17(3%)

0%

3%

6%

9%

12%

15%

Russell 2000® Index by Earnings StabilityFive-Year Rolling CAGR of As Reported Earnings

Recession

4

BetaHQ Small | R2000®

0.71 | 1.00

DECLINING MARKETS(34 Negative Quarters)

Net of Fees

RISING MARKETS(71 Positive Quarters)

Net of Fees

SINCE INCEPTION*(105 Total Quarters)

Net of Fees

Standard DeviationHQ Small | R2000®

14.8% | 19.2%

Upside Reward + Downside Protection = Long-Term Results

28.9%

34.7%

0%

10%

20%

30%

40%

-15.8%

-28.4%

-40%

-30%

-20%

-10%

0%

12.2%

9.8%

5%

7%

9%

11%

13%

83%

56%

+2.4%

Small Cap Investment ObjectiveApril 1, 1992 – June 30, 2018

Our objective is to participate in rising markets, protect capital during declining markets, and outperform over the long term…

…without the volatility typically associated with small cap investing.

*Inception date of the High Quality Small Capitalization Composite is April 1, 1992. For illustrative purposes only. The charts above illustrate the average (annualized) return of the High Quality Small Capitalization Composite during both rising and declining marketssince inception. Results for other time periods may differ from the long-term trend shown above. Rising markets are defined as quarters where the return of the Russell 2000® index was positive. Declining markets are defined as quarters where the return of the Russell2000® index was negative. These positive and negative quarters are separated out from the intervening quarters, cumulated across the period, and annualized. Long-term investment returns include both rising and declining periods. Composite performance is shown inUS dollars and reflects reinvestment of all income and capital gains. Composite performance is shown net of investment advisory fees using a maximum annual investment management fee of 0.80% applied monthly; client results will be reduced by custody fees andother client expenses. Performance during certain periods reflects strong stock market performance that is not typical and may not be repeated. Individual client returns will vary due to fees, client-imposed investment constraints and client inception date. Beta measuresthe historical sensitivity of portfolio excess returns to movements in the excess return of the market index. Standard Deviation is a measure of absolute volatility of returns. The Russell 2000® index is unmanaged and does not incur management fees or other expensesassociated with managed accounts. It is not possible to directly invest in an index. This material is supplemental to the GIPS® presentation included at the end of this presentation. Please see the GIPS® composite presentation for important additional information anddisclosure. Past performance does not predict or guarantee future results. Source: eVestment and Atlanta Capital.

5

Disciplined Investment ProcessHigh Quality Small Cap Equity

• Generally 60 – 70 holdings

• 5% max position sizes

• 30% absolute sector weights

• 10 – 15% turnover*

• Russell 2000® Index

Financial Strength

Overlooked &Under-Followed

Innovative Business Model

EquityUniverse

$200 mm – $4 bnMarket Cap

(at initial purchase)

Exclude companies with:

Focus List150 – 200

• Volatile earnings streams• Short operating histories• High levels of debt• Weak cash flow generation• Low returns on capital

Shareholder-Oriented Management

• Prudent profit taking

• Change in management or business strategy

• Deterioration of financial quality

• Excessive valuation

Step 1Create a ‘Focus List’ of High Quality Companies

Step 2Conduct ‘Onsite’ Fundamental Research

Step 3Construct a Focused Yet

Well-Diversified Portfolio

Step 4Monitor Holdings &Review Focus List

AttractiveValuation

* 3-year average turnover based on a single representative clientportfolio and subject to change; individual client results may vary.

6

Objective• The investment objective of the plan is to achieve long-term capital growth.

• Returns are expected to exceed the Russell 2000® Index (net of fees) over a 3 to 5 year investment horizon or market cycle.

• The returns should rank above the 50th percentile in a universe of comparable funds.

• The Portfolio should achieve 1-year returns (net of fees) that rank above the 90th percentile versus the benchmark.

• The Portfolio should achieve 3-year returns (net of fees) that rank above the 67th percentile versus the benchmark.

Guidelines• No more than 5% of the equity portfolio shall be invested in any one issue, based on cost.

• The portfolio shall not hold more than 5% of the outstanding capital stock of any corporation.

• A maximum of 5% may be invested in any one stock.

• A maximum of 5% cash can be held in the fund.

• American Depository Receipts and foreign common stock traded on U.S. Exchanges are permissible for investment in the Fund.

• No more than 15% of the equity portfolio at cost should be invested in non-US issues.

• There shall be no investment in non-marketable or illiquid securities.

• Leverage techniques, private placements, short techniques or any direct participation plans may not be utilized.

Trading• Investment managers shall make all portfolio transactions on a “best execution” basis.

Proxy Voting• The manager has sole responsibility for voting proxies of shares of companies in the portfolio.

Investment Policy Date: September 2007

Summary of GuidelinesGwinnett County Defined Benefit Plan Master Trust

7

QTD YTD 1 Yr 3 Yrs* 5 Yrs* 7 Yrs* 10 Yrs*

Since Inception*

(%) (%) (%) (%) (%) (%) (%) (%)

High Quality Small Cap 7.16 9.26 19.09 13.19 14.66 14.30 14.68 12.55

Russell 2000® Index 7.75 7.66 17.57 10.96 12.46 11.83 10.60 7.98

0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0 0.00 n/a 0.00 0.00 0.00 0.00 0.00 0.00

0 0.00 n/a 0.00 0.00 0.00 0.00 0.00 0.00

0 0.00 0.00 0.00 0.00 0.00 0.00 0.00

P erformance Inception Date: J anuary 31 , 2007

Net Inves tment C ontributions : $1 2,903,444

Inves tment Dollars E arned: $99,71 9,672

Market Value (06/30/1 8): $1 1 2,623,1 1 6

Account S ummary

Gwinnett County Defined Benefit Plan Master Trust

*Time periods greater than one year are annualized.Performance reflects reinvestment of all income and capital gains (realized and unrealized). Results are based on the accrual method of accounting as well as trade date valuation. Returns are gross of fees unless otherwise noted.Gross of fee returns do not reflect the deduction of management and custodial fees. Net of fee returns reflect the deduction of the management fee accrued on a monthly basis.Returns are based on the total assets of the client’s account, calculated on a daily basis, and geometrically linked to calculate returns for longer periods of time. The unmanaged indexes shown for comparative purposes do not reflect the subtraction of any fees or transaction costs. It is not possible to directly invest in an index.Past performance does not guarantee or predict future results.

Annualized PerformanceAs of June 30, 2018

8

Top Contributorsto Relative Results

+ Positive stock selection in Industrials, Technology, Financials, and Materials

+ Overweight in Consumer Staples and Consumer Discretionary

+ Positive stock selection in Industrials, Financials, Consumer Staples, and Discretionary

+ Underweight in Real Estate, and Utilities

+ Overweight Industrials and Technology

Top Detractorsfrom Relative Results

− Negative stock selection in Consumer Discretionary, Staples, Health Care, Energy, and Real Estate

− Underweight to Energy, Real Estate, and Health Care

− Overweight Industrials

− Negative stock selection in Health Care, Materials, Real Estate, and Energy

− Underweight in Health Care and Energy

− Overweight in Consumer Staples

1.6

1.6

0.0

-0.5

0.6

-1.1

Last 3-Mos.Attribution

(%)

Last 12-Mos.Attribution

(%)

TotalPortfolio

vs. Russell 2000® Index

Stock Selection + Sector Allocation = Excess Return

Sector Allocation

Stock Selection

Excess Return

Sector Allocation

Stock Selection

Excess Return

Source: FactsetThe above attribution results are based on each day's ending holdings, and linked to generate attribution over longer periods. Cash in the portfolio is included in the analysis. Portfolio returns do not reflect applicable expenses and trading costs, or variations in transaction prices from end of day values.

Gwinnett County Defined Benefit Plan Master Trust

Performance Drivers & DetractorsAs of June 30, 2018

9

New Purchases


none this quarter

Portfolio TransactionsLast 3-Months Ending June 30, 2018

10

Complete Sales

none this quarter

Last 3-Months Ending June 30, 2018Gwinnett County Defined Benefit Plan Master TrustHigh Quality Small Cap

Portfolio Transactions

11


MetricsRussell 2000®

IndexTotal

Portfolio 0

# of Holdings 2,021 57 0W td. Avg. Mkt. C ap (billions ) $2.2 $3.7 $His torical E arnings G rowth 8% 7% %F orecas ted E arnings G rowth 1 4% 1 3% %R eturn on E quity 6% 1 7% %P /E (NTM, E xc l. Neg. E arn.) 1 6.6x 20.7x xDividend Y ield 1 .3% 0.9% 0.0%

Top Ten Equity Holdings %

Sector Exposure

Portfolio Metrics

Source: FactSet.

Total Portfolio S&P 500® Index Russell 1000® Growth Index

Mornings tar 3.6Manhattan As s oc iates 3.5E xponent 3.3B lackbaud 3.2C oreLogic 3.2AptarG roup 3.0F air Is aac C orp. 3.0C hoice Hotels Int'l 2.8C olumbia S ports wear 2.8B io-Techne 2.5

20.818.6 18.3

16.1

8.26.3 5.5

0.9 0.9 0.0 0.0

4.4

14.8 14.917.9

13.3

2.8

15.6

4.3 5.07.3

0.73.3

0.00

5

10

15

20

25

30

InformationTechnology

Industrials Financials ConsumerDiscretionary

ConsumerStaples

Health Care Materials Energy Real Estate TelecommServices

Utilities Cash

Total Portfolio Russell 2000® Index

Portfolio CharacteristicsAs of June 30, 2018

12

Source: FactSet.


High Quality Small Cap

Russell 2000® Index

SectorEndingWeight

Cons umer Dis c retionary 16.1% 1 3 .4% Health Care 6.3% 1 5.6% Information Tec hnology 20.8% 1 4.9%

Bright Horiz ons (BFA M) 1 .5% Bio-Tec hne (TECH) 2.5% Blac kbaud (BLKB) 3.2%

Choic e Hotels Int'l (CHH) 2.8% ICU Medical (ICUI) 1 .5% Cas s Information S ys (CA S S ) 0.9%

Columbia S ports w ear (COLM) 2.8% Integra LifeS c iences (IA RT) 1 .7% CoreLogic (CLGX) 3.2%

Dorman Produc ts (DORM) 2.0% Patters on Companies (PDCO) 0.6% Enves tnet (ENV ) 1 .2%

Monro (MNRO) 1 .3% Indus trials 18.6% 1 4.9% ePlus (PLUS ) 1 .1 %

Pool Corp. (POOL) 2.3% A A ON (A A ON) 0.9% Fair Is aac Corp. (FICO) 3.0%

S ally Beauty Hldgs . (S BH) 1 .3% Beac on Roofing S upply (BECN) 2.2% Manhattan A s s oc iates (MA NH) 3.5%

S onic Corp. (S ONC) 1 .1 % Exponent (EXPO) 3.3% National Ins truments (NA TI) 1 .3%

Wolverine World Wide (WWW) 0.9% Forw ard A ir (FWRD) 1 .8% Pow er Integrations (POWI) 1 .2%

Cons umer S taples 8.2% 2.8% Huron Cons ulting Group (HURN) 1 .0% S c anS ourc e (S CS C) 0.8%

Cas ey's General S tores (CA S Y ) 2.3% Kirby Corp. (KEX) 2.4% WEX (WEX) 1 .5%

Inter Parfums (IPA R) 2.5% Lands tar S ys tem (LS TR) 1 .7% Materials 5.5% 4.3%

J &J S nack Foods Corp. (J J S F) 1 .8% Moog (MOG.A ) 1 .6% A ptarGroup (A TR) 3.0%

Lanc as ter Colony Corp. (LA NC) 1 .6% Raven Indus tries (RA V N) 0.9% Balc hem Corp. (BCPC) 1 .0%

Energy 0.9% 5.0% UniFirs t Corp. (UNF) 1 .7% S ens ient Technologies Corp. (S XT) 1 .0%

Dril-Quip (DRQ) 0.9% US Ec ology (ECOL) 1 .1 % S tepan Co. (S CL) 0.6%

Financ ials 18.3% 1 8.0% Real Es tate 0.9% 7 .3%

A rtis an Partners (A PA M) 1 .1 % Univers al Health Realty (UHT) 0.9%

IBERIA BA NK Corp. (IBKC) 1 .1 % Telec ommunication S ervic es 0.0% 0.7%

Kins ale Capital Group Inc . (KNS L) 1 .1 %

Mornings tar (MORN) 3.6% Utilities 0.0% 3 .3%

Navigators Group (NA V G) 1 .7%

Pinnac le Fin'l Partners (PNFP) 1 .3% Cas h 4.4% 0.0%

Pros perity Bancs hares (PB) 1 .7%

RLI Corp. (RLI) 1 .2%

S outh S tate Corp. (S S B) 1 .5%

S tate Bank Financ ial (S TBZ ) 1 .9%

Umpqua Holdings Corp. (UMPQ) 1 .3%

Wes tamerica Banc orp. (WA BC) 0.9%

Current Portfolio HoldingsAs of June 30, 2018

13

Outlook

Portfolio Positioning

High Quality Small Cap

• Markets had a lot of news to digest during the quarter including tariffs, a presidential summit with North Korea, historically low unemployment rates, rising oil prices, a stronger dollar, and another fed funds rate hike.

• Small cap U.S. markets (represented by the Russell 2000® Index) increased +7.75% during the quarter.

• Market bulls continue to focus on good news like positive U.S. economic growth, accommodative interest rates, and fiscal stimulus while bears point to inflationary pressures, trade wars, and more restrictive interest rate policy.

• During the quarter, there were no new purchase or sales.

• At quarter end, the portfolio held 57 stocks representing nine of the eleven economic sectors in the Russell 2000®.

• Relative to the benchmark, the portfolio was overweight Technology, Consumer Staples, Industrials, Consumer Discretionary, Materials, and Financials.

• The portfolio was underweight Health Care, Real Estate, and Energy. There were no positions in Utilities or Telecom Services.

Investment Outlook & StrategyAs of June 30, 2018

14

GIPS® Performance Information and DisclosureHigh Quality Small Capitalization Composite

As of June 30, 2018

1Period 01/01/2018 through 06/30/2018. Past performance does not predict or guarantee future results.

PeriodComposite

Gross Return (%)Composite

Net Return (%)Russell 2000®

Return (%)Composite

3-yr Std. Dev. (%)Russell 2000®

3-yr Std. Dev. (%)Number of Portfolios

InternalDispersion (%)

CompositeAssets ($mil)

FirmAssets ($mil)

20181 9.08 8.65 7.66 10.23 13.86 47 0.29 1,574 21,698

2017 14.77 13.87 14.65 10.95 13.91 49 0.21 1,551 20,606

2016 19.00 18.07 21.31 12.69 15.76 53 0.19 1,544 17,646

2015 5.12 4.29 -4.41 12.68 13.96 54 0.16 1,259 16,054

2014 3.60 2.78 4.89 10.52 13.12 56 0.24 1,235 16,707

2013 42.34 41.24 38.82 12.80 16.45 57 0.51 1,294 18,082

2012 12.24 11.36 16.35 16.63 20.20 60 0.22 996 14,235

2011 10.31 9.44 -4.18 21.88 24.99 60 0.25 1,023 11,964

2010 25.98 24.99 26.86 24.41 27.69 49 0.19 737 9,845

2009 27.17 26.18 27.17 21.69 24.83 36 0.34 639 7,748

2008 -19.41 -20.06 -33.79 16.62 19.85 38 0.34 494 6,199

Atlanta Capital Management Company, LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS Standards. Atlanta Capital Management has been independently verified for the periods January 1, 1999 through December 31, 2017.

Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The High Quality Small Capitalization Composite has been examined for the periods January 1,1999 through December 31, 2017. The verification and performance examination reports are available upon request.

Firm Definition: Atlanta Capital Management Company, LLC (Atlanta Capital or the Firm) is an SEC-registered investment adviser located in Atlanta, Georgia. The Firm became a majority-owned subsidiary of Eaton Vance Corp. in 2001. Atlanta Capital operates as an independent subsidiary of Eaton Vance and provides professional investment advisory services to a broad range of institutional and individual clients, and sub-advisory investment management to mutual funds and separately managed sub-advisory account programs. Atlanta Capital includes all discretionary accounts under management in its composites; total firm assets include discretionary and nondiscretionary accounts for which the firm has investment responsibility.

Composite Description: The investment objective of this style is to seek long-term capital growth. Accounts in this composite invest in common stocks of companies having market capitalizations within the range of companies comprising the Russell 2000®. Management seeks to invest in quality companies in strong financial condition whose equities are priced below their estimate of fair value. Characteristics of high quality companies include a history of sustained growth in earnings and operating cash flow, high returns on capital, attractive profit margins and leading industry positions. Investments are determined based primarily on fundamental analysis of a company’s financial trends, products and services, and other factors. Financial quality rankings provided by nationally-recognized rating services may be utilized as part of the investment analysis but are not solely relied upon. The portfolios are broadly diversified. All fully discretionary accounts that are managed in this style and do not pay a bundled or SMA wrap fee are eligible for inclusion in the composite.

Benchmark: The composite’s benchmark is the Russell 2000® Index, a widely accepted measure of the small-cap segment of the U.S. equity universe. The index includes the smallest 2000 companies in the Russell 3000®. Prior to July 1, 2005, the composite was also compared to the Russell 2000® Value Index as the portfolio construction process produced both core and value characteristics. Our high quality investment philosophy tends to be defensive in nature and does consider valuation metrics, but it is more consistent with the philosophy and process of a core manager than a value manager. As of July 1, 2015, to clarify our process for potential clients, we determined that it was most appropriate to benchmark our performance results against the Russell 2000® Index only. The investment process for this strategy is not limited by the relative weights of a benchmark. Strategy deviations from the benchmark may include but are not limited to such factors as active management, exclusion/inclusion of securities held/not held in the index, over/underweighting specific sectors or securities, limitations in market cap, and/or client constraints. Indexes include the reinvestment of dividends and earnings, are unmanaged, and do not incur management fees, transaction costs or other expenses associated with separately managed accounts. It is not possible to directly invest in an index.

15

*Inception date is April 1, 1992.E7.07.11.18

Annualized Returns (%) for Periods Ending June 30, 2018 Cumulative (%)

Atlanta Capital High Quality Small Capitalization Composite 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception* Since Inception*

Composite Gross of Fees 18.87 13.09 14.64 14.31 14.77 13.07 2413.72

Composite Net of Fees 17.94 12.20 13.74 13.41 13.87 12.17 1939.67

Russell 2000® Index 17.57 10.96 12.46 11.83 10.60 9.78 1058.44

Gross and Net Returns: Performance reflects reinvestment of all income and capital gains. Composite returns and market values are reported in U.S. dollars. Gross-of-fees performance returns are presented before management and custodial fees but after all trading expenses. Returns are presented net of withholding taxes. Net-of-fees performance returns are calculated by deducting the highest management fee of 0.80% from the monthly gross-of-fees returns. Other expenses will reduce a client’s returns. The annual fee schedule for this composite is as follows: 0.80% on the first $50 million in assets; 0.70% on the next $50 million in assets; 0.60% on the next $150 million. Actual management fees incurred by clients may vary.

Composite Dispersion: The annual internal composite dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. Internal dispersion is shown only for composites that held at least six accounts for the entire year. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period.

Notes to Composite: The creation date of this composite is July 1992. Effective July 1, 2010, the composite was redefined to include both taxable and tax-exempt institutional accounts. The composite up to that time included only tax-exempt institutional accounts. The change provides increased transparency to prospective clients by reducing the number of separate composites maintained for this strategy. There has been no change in investment objective or management style. Clients or prospective clients should not assume that they will have an investment experience similar to that indicated by past performance results, as shown on the Schedule. Returns may vary based upon differences in account size, timing of transactions and market conditions at the time of investment. Performance during certain time periods reflects the strong stock market performance and/or the strong performance of stocks held during those periods. This performance is not typical and may not be repeated. Investing entails risks and there is always the possibility of loss.

Other Matters: The Firm’s list of composite descriptions and policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request. To request any additional information, please contact the Atlanta Capital Management Performance Department at 404-876-9411 or write to Atlanta Capital Management Company, LLC, 1075 Peachtree Street NE, Suite 2100, Atlanta, Georgia 30309, Attention Performance Department. Past performance does not predict future results.

16

600 Travis, Suite 6300

Houston, TX 77002

713-224-2545

www.vaughannelson.com

Gwinnett County Public Employees Retirement System September 14, 2018 Presented by: Chad Fargason, Ph.D. - Senior Portfolio Manager, Equity Investments

This page is intentionally left blank.

3

Table of Contents

I. Organizational Overview

II. Value Opportunity Investment Philosophy and Process

III. Value Opportunity Analytics and Performance

IV. Portfolio Appraisal

V. Vaughan Nelson Team

5

Organizational Overview

6

Firm Overview

* Number includes assets where Vaughan Nelson Investment Management does not have full

unconditional trading authority. The assets consist of model portfolio relationships with third party

platforms and totaled $1.6 billion as of June 30, 2018.

Founded 1970

$13.2 Billion Assets Under Management*

Equity and Fixed Income Strategies

43 Employees

• 13 Investment Team Professionals

◦ 6 Chartered Financial Analyst® designations

◦ 2 Ph.D.s

Philosophy

Temporary inefficiencies create long-term opportunities

Targeted return focus

Concentrated, high conviction, high active share

Consistent process across all market caps

Process

Stock selection driven by targeting return objective,

not benchmark construction

Rigorous, bottom-up fundamental analysis

Construct of the macro environment in effort to

minimize macro uncertainty

People

Organization

7

Equity Strategies

Small Cap Value Benchmark against the Russell 2000® Value Index

Generally 55 to 85 positions

Value Opportunity

Select

Benchmark against the Russell Midcap® Value Index and

Russell 2500™ Value Index


Benchmark against the Russell 3000® Index


One philosophy. One process.

8

Equity Investment Team

Investment Professional Title Strategies Managed

Investment

Experience

(years)

Year

Joined

Firm

Chris D. Wallis, CFA, CPA CEO, CIO, Lead Senior Portfolio Manager Small Cap Value

Select, Value Opportunity 26 1999

Scott J. Weber, CFA Lead Senior Portfolio Manager Select

Small Cap Value, Value Opportunity 22 2003

Dennis Alff, CFA Lead Senior Portfolio Manager Value Opportunity

Small Cap Value, Select 21 2006

Chad Fargason, Ph.D. Senior Portfolio Manager Value Opportunity

Small Cap Value, Select 18 2013

Benjamin C. Carrier Equity Analyst 4 2016

Stephen A. Davis, CFA Vice President - Equity Investments 13 2010

James R. Eisenman, CFA, CPA Vice President - Equity Investments 16 2005

Tyler Fry Equity Analyst 4 2016

Adam C. Rich, CFA Equity Analyst 8 2016

William C. Wojciechowski, Ph.D. Manager, Portfolio & Risk Analytics 16 2007

9

Representative List of Institutional Clients

It is not known whether the listed clients approve or disapprove of the advisor or the advisory services provided. This is a list of institutional

clients whose investment management is a matter of public record, selected because it was believed that their names would be recognized

by prospective clients, without regard to performance-based criteria.

Aurora Health Care

Board of Higher Education, United Methodist Church

Hamill Foundation

Houston Grand Opera

Methodist Hospital

Roman Catholic Diocese of Orange

Santa Barbara Museum of Art

Santa Clara University

Texas Medical Association

The Community Foundation of Louisville

Trull Foundation

University of Dallas

Wortham Foundation

Baxter International

Bristol-Myers Squibb

Hess Corporation

Principal Financial Group

Stewart Title

Cobb County Employees’ Retirement System

Florida State Board of Administration

Gwinnett County Public Employees Retirement System

Montana Board of Investments

Nebraska Public Power Employees’ Retirement System

Peace Officers’ Annuity and Benefit Fund of Georgia

Teacher Retirement System of Texas

Non-Profit

Corporate

Public

11

Value Opportunity Investment Philosophy

and Process

12

Vaughan Nelson

We believe investing is about offsetting future obligations, not just having market

exposure, and …

► Attractive risk adjusted returns require thinking about markets in a different way

► Investment returns are not driven by style box allocation

► Capital allocation requires analysis and understanding of broad asset classes

► “Macro risk” is integral to “bottom-up analysis”

► Understanding market and economic history is integral to understanding the current market

context and potential investment returns

► You cannot time the market. For example, if we don’t have your money when opportunities

arise, then we can’t capture the value/alpha as it develops in the market

13

Three Ways to Achieve 50% Return Over Three Years

Undervalued Growth

Earning positive return on capital

Stable-to-improving returns

Not paying for future growth

Undervalued Assets

Undervalued Dividend

Priced at a discount to asset value

Identifiable catalyst with ability to close

valuation gap

High, secure dividend. Typically 10%+.

Minimal basis risk

14

Category Weightings as of 6/30/18

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18

Perc

en

tag

e o

f P

ort

foli

o

Quarterly data

Undervalued Growth

Undervalued Assets

Undervalued Dividend

Value Opportunity Historical Investment Focus Since 2nd Quarter 2006

15

Vaughan Nelson Active Share

Vaughan Nelson Small Cap Value (6/30/13 - 6/30/18)

96% 93% 95%

High Low Average

Source: FactSet

97% 91% 94%

High Low Average

Vaughan Nelson Value Opportunity (6/30/13 - 6/30/18)

95% 86% 89%

High Low Average

Vaughan Nelson Select (6/30/13 - 6/30/18)

17

Value Opportunity

Performance and Analytics

18

Portfolio Characteristics as of 6/30/18

84%

100%

Earnings Variability**

Vaughan Nelson Value Opportunity

Russell Midcap® Value Index

** The numerical value one minus the R-

squared statistic for a trend line of the

most recent five years of fiscal year

earnings per share. Earnings variability of

the Value Opportunity portfolio is 0.48

versus 0.57 for the Russell Midcap® Value

Index (6/30/13 to 6/30/18).

These portfolio characteristics are supplemental information to the Value Opportunity

compliant presentation.

Data as of 7/7/18 for 6/30/18.

Source: FactSet

12.4 14.3

5.4

1.9

10.6

15.2

4.6

2.1

11.2

15.2

4.0

2.1

Est. 3-5 Yr.

EPS Growth

(%)

P/E

NTM

ROA

(%)

Dividend Yield

(%)

Vaughan Nelson Value Opportunity

Russell Midcap® Index

Russell 2500® Value Index

19

Portfolio Characteristics as of 7/31/18

10

,62

3

7,5

14

1,4

32

35

,65

8

14

,85

8

13

,56

1

61

0

71

,05

5

Weighted Average Weighted Median Lowest Highest

Gwinnett County Public Employees Retirement Russell Midcap® Value Index

These portfolio characteristics are supplemental information to the Value Opportunity compliant presentation.

Source: FactSet

Market Capitalization

Statistics

($ millions)

20

Sector Allocation as of 7/31/18 2

4.0

%

15

.3%

14

.9%

11

.3%

10

.8%

9.0

%

8.6

%

4.4

%

1.7

%

0.0

%

0.0

%

18

.2%

9.0

% 11

.4%

9.9

% 12

.3%

6.4

%

7.7

%

6.6

%

13

.1%

4.9

%

0.5

%

Financials Technology Consumer

Disc.

Utilities Industrials Materials Energy Health Care Real Estate Staples Telecom

Gwinnett County Public Employees Retirement Russell Midcap® Value Index

* Excludes 3.43% cash.

Source: FactSet S&P GICS

21

Performance Attribution - 7/31/17 thru 7/31/18

Gwinnett County Public

Employees Retirement Russell Midcap Value Variation Attribution Analysis

Avg Tot Contrib Avg Tot Contrib Avg Tot Contrib Allocation Selection + Total

S&P GICS SECTOR Wt Ret To Ret Wt Ret To Ret Wt Ret To Ret Effect Interaction Effect

CONSUMER DISCRETIONARY 16.53 -0.85 -0.15 11.69 4.91 0.53 4.84 -5.76 -0.68 -0.07 -1.15 -1.25

CONSUMER STAPLES -- -- -- 4.00 -2.79 -0.14 -4.00 2.79 0.14 0.51 -- 0.51

ENERGY 8.01 46.11 3.24 8.04 24.73 1.94 -0.03 21.38 1.30 0.04 1.29 1.32

FINANCIALS 25.72 13.60 3.55 20.15 11.12 2.14 5.57 2.48 1.41 0.23 0.56 0.81

HEALTH CARE 4.31 20.58 0.66 6.47 3.34 0.17 -2.15 17.24 0.49 0.03 0.68 0.71

INDUSTRIALS 11.95 1.11 -0.07 11.83 9.75 1.15 0.12 -8.65 -1.21 -0.14 -1.02 -1.15

INFORMATION TECHNOLOGY 15.68 14.23 2.18 6.68 23.52 1.43 9.00 -9.29 0.75 1.26 -1.29 -0.04

MATERIALS 10.07 14.85 1.31 5.61 15.07 0.84 4.46 -0.21 0.47 0.19 -0.00 0.18

REAL ESTATE 1.19 5.76 0.10 13.92 1.92 0.34 -12.72 3.85 -0.24 0.91 0.07 0.98

TELECOMMUNICATION SERVICES -- -- -- 0.48 -8.17 -0.05 -0.48 8.17 0.05 0.10 -- 0.10

UTILITIES 4.23 0.21 0.30 10.20 4.29 0.52 -5.96 -4.08 -0.22 0.32 -0.11 0.25

[Cash] 2.30 1.42 0.03 -- -- -- 2.30 1.42 0.03 -0.20 -- -0.21

[Unassigned] -- -- -- 0.95 28.28 0.21 -0.95 -28.28 -0.21 -0.14 -- -0.14

Total 100.00 11.15 11.15 100.00 9.07 9.07 -- 2.08 2.08 3.04 -0.96 2.08

Source: FactSet

22

Top Ten Holdings as of 7/31/18

Gwinnett County Public Employees Retirement

* Excludes 3.43% cash.

Source: FactSet

Company Percent of Total Portfolio*

Bank of N.T. Butterfield & Son 3.26%

WPX Energy Class A 3.14%

New Residential Investment 2.61%

Centene 2.57%

Ares Capital 2.48%

Crown Holdings 2.36%

CACI International Class A 2.20%

Fidelity National Information Services 2.18%

Atlantica Yield 2.15%

Continental Resources 2.07%

23

Vaughan Nelson Value Opportunity Performance

► Investment Objective

Long-term capital appreciation through investments in small and mid capitalization companies with a focus on a

targeted return

► Investment Focus

■ Companies within the market capitalization range from $1 billion to $20 billion at time of purchase

■ Companies earnings a positive return on capital, valued at a discount to their asset value or with an attractive

dividend yield

■ Companies that have the potential for 50% returns over a three-year investment horizon

Returns as of 6/30/18 YTD 1 Year 3 Years 5 Years 7 Years 10 Years

Since

6/30/06

VN Value Opportunity 0.0% 9.5% 3.4% 10.0% 10.2% 9.7% 9.4%

Russell Midcap® Value Index -0.2% 7.6% 8.8% 11.3% 11.7% 10.1% 8.4%

All returns are presented gross-of-fees and all periods longer than 12 months are annualized.

Source: FactSet

See page 24 for detailed composite information.

Gwinnett County as of 8/24/18

YTD

1 Year 3 Years 5 Years

Since

3/31/12

Total Portfolio 4.9% 16.5% 8.3% 9.8% 12.2%

Russell Midcap® Value Index 3.7% 13.4% 13.5% 11.2% 13.0%

24

Value Opportunity: GIPS® Composite, Notes and Disclosures January 1, 2008 through June 30, 2018

Year Composite

Primary

Benchmark

Secondary

Benchmark

Number of

Portfolios

Dispersion

at End-of-Period

Composite Assets

at End-of-Period

Total Firm Assets

(ex. model assets)

Entity

Assets*

Std Dev

Composite

Std Dev Primary

Benchmark

Std Dev Secondary

Benchmark

(Gross) (Std Dev) ($MM-USD) ($MM-USD) ($MM-USD) (3-Yr Annlzd) (3-Yr Annlzd) (3-Yr Annlzd)

YTD 2018 0.03% -0.16% 3.00% 45 N/A 2,553 11,585 13,164 11.80% 10.37% 11.94%

2017 14.31% 13.34% 10.36% 49 0.27% 2,612 11,675 13,172 12.30% 10.32% 11.81%

2016 7.12% 20.00% 25.20% 62 0.26% 2,895 11,572 12,912 13.53% 11.30% 13.17%

2015 -2.35% -4.78% -5.49% 62 0.24% 2,631 11,316 12,469 12.48% 10.71% 12.02%

2014 12.26% 14.75% 7.11% 58 0.58% 1,477 9,943 11,057 11.21% 9.81% 11.25%

2013 43.03% 33.46% 33.32% 46 0.39% 965 9,243 10,258 15.65% 13.69% 15.07%

2012 17.56% 18.51% 19.21% 41 0.18% 586 7,273 8,071 18.81% 16.76% 18.41%

2011 -2.37% -1.38% -3.36% 27 0.17% 433 6,876 7,667 21.46% 22.78% 24.23%

2010 21.92% 24.75% 24.82% 19 0.36% 356 7,050 7,965 24.09% 27.11% 26.97%

2009 34.11% 34.21% 27.68% 7 0.49% 127 6,757 7,690 N/A N/A N/A

2008 -31.33% -38.44% -31.99% 7 0.19% 80 5,761 6,642 N/A N/A N/A

* Number includes assets where Vaughan Nelson Investment Management does not have full unconditional trading authority. The assets consist of model portfolio relationships with third party platforms and totaled $1.6

billion as of June 30, 2018. This information is presented as supplemental information to the Value Opportunity compliant presentation.

BASIS OF PRESENTATION (cont.). appropriateness of any strategy referred to for any particular investor.

This document is provided for informational purposes only and should not be construed as advice or a

recommendation for purchase or sale of securities. Past performance is not indicative of future results. The

strategy is managed by Dennis Alff, Chad Fargason, Chris Wallis and Scott Weber since 9/30/13. Previously,

the strategy was managed by Dennis Alff, Chris Wallis and Scott Weber.

COMPOSITE NOTES. The composite for each investment strategy has specific criteria in terms of minimum

portfolio size, tax status, and discretion. Portfolios meeting the stated criteria are added to the composite as

of the first full quarter of investment in that composite’s style. Similarly, accounts are removed from the

composite after the last full quarter of management under the composite style. A complete list and

description of composites is available upon request. The composite results portrayed reflect the reinvestment

of dividends, capital gains, and other earnings when appropriate.

CALCULATION METHODOLOGY. The composite performance results are time-weighted total return net of

commissions and transaction costs. Valuations and returns are expressed in U.S. dollars. Vaughan Nelson

consistently values all portfolios each month on a trade date basis. Additional information regarding policies

for valuing portfolios, calculating performance, and preparing compliant presentations is available upon

request. No composite accounts hold foreign denominated securities.

COMPLIANT STATEMENT. Vaughan Nelson claims compliance with the Global Investment Performance

Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® Standards.

Vaughan Nelson has been independently verified for the periods 12/31/97 through 6/30/18. Verification

assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS®

standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and

present performance in compliance with the GIPS® standards. The Value Opportunity composite has been

examined for the periods 7/1/06 to 12/31/17. The verification and performance examination reports are

available upon request.

PERFORMANCE DISCLOSURE. For returns presented gross of fees, results were calculated prior to a

deduction for investment management fees. Client returns will be reduced by Vaughan Nelson’s investment

management fees. The fee schedule is disclosed in Part 2A of Form ADV filed with the Securities and

Exchange Commission. Over a period of years, deductions for annual investment management fees will

reduce the compounding effect on portfolio growth. For example, assuming a 5% annual return for five years

and application of the maximum annual fee of .85%, a total gross return of 27.63% and a total net return of

22.55% would be generated.

Model year-end portfolio totals were as follows: 2017 - $1.5 billion; 2016 - $1.3 billion, 2015 - $1.2 billion,

2014 - $1.1 billion, 2013 - $1.0 billion, 2012 - $798 million, 2011 - $791 million, 2010 - $915 million,

2009 - $933 million, 2008 - $881 million.

NOTES:

COMPOSITE DESCRIPTION. This composite is comprised of all fee paying, discretionary Value Opportunity

portfolios with a minimum of $1 million under management. Value Opportunity is defined as a security

having a market capitalization within the capitalization range of $1 billion to $20 billion at time of initial

purchase. The primary benchmark is the Russell Midcap® Value Index. The Russell Midcap® Value Index

measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell

Midcap® Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell

Midcap® Value Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap

value market. The Index is completely reconstituted annually to ensure larger stocks do not distort the

performance and characteristics of the true mid-cap value market. The secondary benchmark is Russell 2500®

Value Index. The Russell 2500® Value Index measures the performance of the small to mid-cap value segment

of the U.S. equity universe. It includes those Russell 2500 companies with lower price-to-book ratios and

lower forecasted growth values. The Russell 2500® Value Index is constructed to provide a comprehensive

and unbiased barometer of the small to mid-cap value market. The Index is completely reconstituted annually

to ensure larger stocks do not distort the performance and characteristics of the true small to mid-cap

opportunity set and that the represented companies continue to reflect value characteristics. Frank Russell

Company (“Russell”) is the source and owner of Russell Index data contained herein. Any further

dissemination of the data is strictly prohibited. Russell is not responsible for any inaccuracy in this

presentation. Composite creation date is June 2006.

FIRM DEFINITION. Vaughan Nelson Investment Management (“Vaughan Nelson”) is an equity, fixed-income

and balanced portfolio investment manager. Vaughan Nelson is defined as an independent investment

advisory firm and is affiliated with Natixis Investment Managers.

FEES. Value Opportunity Fee Schedule: .85% on the first $10 million, .75% on the next $15 million, .70% on

the next $25 million, .65% on assets over $50 million.

OTHER NOTES. Performance results are presented before management fees. Results for the full historical

period are time weighted. Accounts have been valued daily and portfolio returns have been weighted by

using beginning-of-month market values plus daily weighted cash flow. The dispersion calculation is based

on a dollar-weighted average of portfolios within the composite for the entire period. The dispersion percent

of N/A indicates that the number of portfolios for the entire year were equal to five or fewer or periods of less

than one year. The benchmark source is FactSet. The valuation source is Intercontinental Exchange (ICE)

through Advent Software. Benchmark returns are not covered by the report of independent verifiers.

DISCLOSURES:

BASIS OF PRESENTATION. The attached information and index performance has been developed internally

and/or obtained from sources, which Vaughan Nelson believes to be reliable; however, Vaughan Nelson does

not guarantee the accuracy, adequacy or completeness of such information, nor does it guarantee the

25

Portfolio Appraisal

26



Adj Unit Total Adjusted Market Pct. Cur.

Security Cost Cost Price Value Assets Yield

BNY Mellon Trust Deposit EMN 1,457,260.92 1,457,260.92 3.5 1.1

Dividend Accrual Account 2,312.50 2,312.50 0.0 0.0

1,459,573.42 1,459,573.42 3.5 1.1

ENERGY

9,450 BAKER HUGHES A GE CO 59.12 558,662.41 34.69 327,820.50 0.8 2.1

13,200 CONTINENTAL RESOURCES INC 42.59 562,141.55 63.43 837,276.00 2.0 0.0

34,825 FORUM ENERGY TECHNOLOGIES INC 18.24 635,343.64 12.05 419,641.25 1.0 0.0

57,300 QEP RES INC 13.32 763,368.86 10.48 600,504.00 1.4 0.0

68,075 WPX ENERGY INC 11.63 791,614.91 19.01 1,294,105.75 3.1 0.0

3,311,131.37 3,479,347.50 8.3 0.2

MATERIALS

4,000 AVERY DENNISON CORP 55.66 222,653.11 112.59 450,360.00 1.1 1.8

47,175 CONSTELLIUM NV 10.35 488,106.02 12.90 608,557.50 1.5 0.0

21,175 CROWN HOLDINGS INC 46.14 976,998.97 45.17 956,474.75 2.3 0.0

7,750 F M C CORP 86.48 670,227.59 89.15 690,912.50 1.7 0.7

2,575 PACKAGING CORP AMER 54.41 140,099.46 111.13 286,159.75 0.7 2.8

9,675 POLYONE CORP 38.23 369,891.99 43.97 425,409.75 1.0 1.6

2,225 RELIANCE STEEL & ALUMINUM CO 66.98 149,028.59 90.84 202,119.00 0.5 2.2

3,017,005.73 3,619,993.25 8.6 0.9

INDUSTRIALS

5,325 BRINKS CO 81.55 434,233.11 79.10 421,207.50 1.0 0.8

2,875 HUBBELL INC 117.54 337,925.18 119.94 344,827.50 0.8 2.6

13,875 KAR AUCTION SVCS INC 28.26 392,072.49 58.42 810,577.50 1.9 2.4

6,450 MASONITE INTL CORP NEW 72.06 464,757.27 67.60 436,020.00 1.0 0.0

4,775 MIDDLEBY CORP 119.88 572,414.64 100.72 480,938.00 1.1 0.0

15,300 MILACRON HLDGS CORP 17.55 268,524.65 20.45 312,885.00 0.7 0.0

8,650 NVENT ELECTRIC PLC 20.17 174,511.03 26.92 232,858.00 0.6 2.6

6,425 OSHKOSH CORP 88.14 566,315.45 73.51 472,301.75 1.1 1.3

8,650 PENTAIR PLC 39.80 344,260.24 43.37 375,150.50 0.9 1.6

8,975 TIMKEN CO 50.13 449,943.39 46.00 412,850.00 1.0 2.4

4,004,957.45 4,299,615.75 10.3 1.4

Quantity

DOMESTIC EQUITIES

CASH AND EQUIVALENTS

27





CONSUMER DISCRETIONARY

14,400 ARAMARK 36.16 520,669.67 39.74 572,256.00 1.4 1.1

33,975 EXTENDED STAY AMER INC 19.74 670,683.61 21.17 719,250.75 1.7 0.0

14,325 GILDAN ACTIVEWEAR INC 28.89 413,863.79 25.39 363,711.75 0.9 1.8

39,900 LAUREATE EDUCATION INC 15.50 618,292.62 14.33 571,767.00 1.4 0.0

3,075 MOHAWK INDS INC 201.76 620,399.37 184.70 567,952.50 1.4 0.0

15,469 NEWELL BRANDS INC 45.18 698,830.76 26.21 405,442.49 1.0 3.5

11,150 NEXSTAR MEDIA GROUP INC 62.76 699,734.76 73.95 824,542.50 2.0 2.0

3,175 PVH CORP 107.17 340,265.80 153.30 486,727.50 1.2 0.1

8,125 SERVICEMASTER GLOBAL HLDGS INC 29.93 243,199.97 58.07 471,818.75 1.1 0.0

4,875 SIGNET JEWELERS LIMITED 78.84 384,324.34 61.64 300,495.00 0.7 2.4

11,600 SIX FLAGS ENTMT CORP NEW 61.01 707,716.38 64.45 747,620.00 1.8 4.8

5,917,981.08 6,031,584.24 14.4 1.4

HEALTH CARE

8,025 CENTENE CORP DEL 71.47 573,520.28 129.40 1,038,435.00 2.5 0.0

6,220 IQVIA HLDGS INC 82.13 510,847.15 120.92 752,122.40 1.8 0.0

1,084,367.43 1,790,557.40 4.3 0.0

FINANCIALS

59,900 ARES CAP CORP 16.28 975,203.70 16.78 1,005,122.00 2.4 9.1

12,350 ATHENE HLDG LTD 50.90 628,594.57 45.35 560,072.50 1.3 0.0

26,850 BANK OF NT BUTTERFIELD&SON LTD 36.10 969,343.62 49.20 1,321,020.00 3.2 3.1

11,850 CHEMICAL FINL CORP 36.46 432,016.03 57.90 686,115.00 1.6 2.3

4,900 ESSENT GROUP LTD 44.76 219,340.05 38.25 187,425.00 0.4 0.0

10,775 FIRST AMERN FINL CORP 27.12 292,252.16 55.47 597,689.25 1.4 2.7

8,900 GALLAGHER ARTHUR J & CO 45.38 403,915.17 71.14 633,146.00 1.5 2.3

8,750 HARTFORD FINL SVCS GROUP INC 40.97 358,483.80 52.67 460,862.50 1.1 2.3

15,450 MGIC INVT CORP WIS 14.56 224,989.61 12.44 192,198.00 0.5 0.0

6,975 NASDAQ INC 42.27 294,812.28 92.51 645,257.25 1.5 1.9

59,475 NEW RESIDENTIAL INVT CORP 12.54 745,850.65 17.98 1,069,360.50 2.6 11.1

12,200 PACWEST BANCORP DEL 44.63 544,488.60 50.02 610,244.00 1.5 4.8

11,300 RADIAN GROUP INC 21.22 239,770.24 18.89 213,457.00 0.5 0.1

4,800 REINSURANCE GROUP AMER INC 70.11 336,545.24 139.88 671,424.00 1.6 1.7

9,050 SEI INVESTMENTS CO 35.21 318,664.98 60.37 546,348.50 1.3 1.0

12,825 SYNCHRONY FINL 31.68 406,287.42 29.51 378,465.75 0.9 2.8

7,390,558.14 9,778,207.25 23.4 3.9

Quantity

28





INFORMATION TECHNOLOGY

2,800 ALLIANCE DATA SYSTEMS CORP 225.54 631,524.36 225.08 630,224.00 1.5 1.0

5,850 ANALOG DEVICES INC 78.14 457,112.87 95.31 557,563.50 1.3 2.0

5,100 CACI INTL INC 80.93 412,733.35 171.00 872,100.00 2.1 0.0

5,150 CHECK POINT SOFTWARE TECH LTD 70.63 363,760.99 113.54 584,731.00 1.4 0.0

12,875 COMMSCOPE HLDG CO INC 29.90 384,955.53 30.64 394,490.00 0.9 0.0

8,600 FIDELITY NATL INFORMATION SVCS 65.52 563,483.70 105.06 903,516.00 2.2 1.2

5,150 FISERV INC 22.88 117,829.32 74.46 383,469.00 0.9 0.0

7,175 GLOBAL PMTS INC 46.13 330,975.93 112.26 805,465.50 1.9 0.0

7,850 KEYSIGHT TECHNOLOGIES INC 53.36 418,891.66 57.46 451,061.00 1.1 0.0

3,875 LOGMEIN INC 111.15 430,707.22 81.25 314,843.75 0.8 1.5

3,825 RINGCENTRAL INC 22.20 84,931.88 73.80 282,285.00 0.7 0.0

4,196,906.82 6,179,748.75 14.8 0.5

UTILITIES

12,125 AMEREN CORP 58.54 709,813.49 61.42 744,717.50 1.8 3.0

42,500 ATLANTICA YIELD PLC 20.91 888,708.46 20.41 867,425.00 2.1 5.8

15,650 CMS ENERGY CORP 46.77 732,003.23 47.64 745,566.00 1.8 3.0

12,625 EVERSOURCE ENERGY 59.47 750,786.14 59.76 754,470.00 1.8 3.4

30,375 VISTRA ENERGY CORP 22.91 696,010.41 22.17 673,413.75 1.6 0.0

11,400 WEC ENERGY GROUP INC 63.91 728,579.96 65.20 743,280.00 1.8 3.4

4,505,901.69 4,528,872.25 10.8 3.2

REAL ESTATE

10,925 CYRUSONE INC 54.37 594,020.56 62.88 686,964.00 1.6 2.9

594,020.56 686,964.00 1.6 2.9

DOMESTIC EQUITIES Total 34,022,830.25 40,394,890.39 96.5 1.9

35,482,403.67 41,854,463.81 100.0 1.9

Quantity

TOTAL PORTFOLIO

29

Vaughan Nelson Team

30

Vaughan Nelson Team

INVESTMENTS

Dennis Alff, CFA

Senior Portfolio Manager - Equity Investments

M.B.A., Harvard Business School, 1998

B.S., United States Military Academy, 1993

21 years investment management and research experience

Benjamin C. Carrier

Equity Analyst

B.B.A., Baylor University, 2014, cum laude

4 years financial analysis and accounting experience

Stephen A. Davis, CFA

Vice President - Equity Investments

B.A., Rice University, 2005, cum laude


James Eisenman, CFA, CPA

Vice President - Equity Investments

B.B.A., Ohio State University, 2002

Masters in Accounting, Ohio State University, 2002

16 years financial services and accounting experience

Charles M. Ellis

Portfolio Manager - Fixed Income Investments

B.B.A., Texas Tech University, 1973


Chad Fargason, Ph.D.

Senior Portfolio Manager

Ph.D., Duke University, 1998

M.A., Duke University, 1996

B.A., Rice University, 1994

18 years investment and research experience

Tyler Fry

Equity Analyst

B.B.A., Southern Methodist University, 2014

B.S., Southern Methodist University, 2014

4 years investment management and financial analysis experience

INVESTMENTS

Blanca L. Garza

Portfolio Manager and Trader - Fixed Income Investments

M.B.A., University of Saint Thomas, 1996

B.A., University of Houston-University Park, 1989


Steven M. Henriksen

Senior Portfolio Manager/Director - Fixed Income Investments

B.A., Louisiana State University, 1978


Adam C. Rich, CFA

Equity Analyst

B.S., Brigham Young University, 2010


Chris D. Wallis, CFA, CPA

CEO and CIO

M.B.A., Harvard Business School, 1998

B.B.A., Baylor University, 1991

26 years investment management / financial analysis

and accounting experience

Scott J. Weber, CFA

Senior Portfolio Manager - Equity Investments

M.B.A., Tulane University, 1997

B.S., The University of the South, 1994


William C. Wojciechowski

Manager, Portfolio & Risk Analytics

Ph.D., Rice University, 2001

M.A., Rice University, 1999

M.S., West Virginia University, 1996

B.S., Carnegie Mellon University, 1992


MANAGEMENT, MARKETING AND CLIENT SERVICES

Mark E. Farrell

Director - Institutional Marketing

Director - Private Client Services

M.B.A., St. Edward’s University, 1991

B.A., St. Edward’s University, 1990, summa cum laude

26 years investment and financial services experience

Michael J. Hanna

Director, Client Services

Client Portfolio Manager

M.B.A., Rice University, 2005

B.A., University of Texas, 1997

18 years investment management and analytical

experience

Danika Haselden, CFP®

Marketing and Client Service Associate

B.B.A., University of Texas, 2013

5 years investment management client service and

marketing experience

George C. Holewyne

Manager, Institutional Marketing

B.B.A., Sam Houston State University, 1987


Daniel Hughes

Vice President, Client Portfolio Manager

M.B.A., Boston University, 2012

B.A., Brown University, 2006


Cynthia G. Lones

Marketing and Communications Manager

B.A., University of Michigan, 1997

21 years investment and marketing experience

Steven Psaledakis

President M.B.A., University of Denver, 1997

B.A., University of Colorado, 1991

20 years financial services experience

September 14, 2018

Gwinnett County Retirement Plans

PRESENTATION BY:

Brian Campbell, Portfolio Manager

The London Company (also called the Virginia Company of London) was an English joint stock company established by royal charter by James I on April 10, 1606 with the purpose of establishing colonial settlements in North America. It was one of two such companies, along with the Plymouth Company, which was granted an identical charter as part of the Virginia Company. The London Company was responsible for establishing the Jamestown settlement, the first permanent English settlement in the United States, in 1607.

September 14, 2018

Gwinnett County Retirement Plans

PRESENTATION BY:

Brian Campbell, Portfolio Manager

3 |

Appendix• Seasoned investment team

• London Company asset composition

• Balance sheet optimization

• Composite information

• Disclosures

• Contact information

The London Company in review• Our principles

• A differentiated investment approach• Lower downside risk protects gains

How you have done• Portfolio characteristics

• Annualized and calendar year performance

Market Observations

1Table of contents

3

2

3 |

4

The London Company in review and who we are• Our principles• A differentiated investment approach• Lower downside risk protects gains

1

4 |

5 |

Who we are

Founded in 1994 in Richmond, VA

$25.0 billion in assets1 under advisement (as of June 30, 2018)

Majority employee-owned firm with 10 principals

– Team-based decision making

– Investment professionals average 20+ years of industry experience

– We invest alongside our clients

Serving institutional, sub-advisory, and wealth clients and their intermediaries around the world

1 Includes Model Assets of $15.4B as of 6/30/2018. Subject to change.

6 |

Our principles

These core principles inform every investment decision.

We believe

The real opportunity lies in evaluating risk.

We take a long-term perspective, giving our businesses time to appreciate.

Our process is designed to mitigate downside risk.

We rely on facts, not speculation.

We are active managers who invest with conviction to mitigate risk and maximize opportunity.

Markets are much less efficient at assessing risk than reward.1Protecting client assets in down markets will deliver superior long-term performance.2No one can predict the future.3Most investors over-diversify.4Companies should be evaluated as if we are buying the entire company.5

7 |

A differentiated investment approach

Our investment process centers on three distinct phases of analysis.

Businesses with sustainablyhigh returns on capital

Meaningful portfolio construction

Reduce speculation by evaluating a

company’s ability to reduce cost of capital

Fundamental,bottom-up research

Balance sheet optimization1

21 3

Concentrated, with high conviction

1 We define balance sheet optimization as concrete action management can immediately take to increase shareholder value, given the current assets and liabilities on the balance sheet, e.g., raise capital, buy back stock, etc.

8 |

Lower downside risk protects gains

Supplemental Information: Please refer to the appendix in Section 5 for firm disclosures and GIPS® compliant presentations. Past performance should not be taken as a guarantee of future performance. These returns may not be representative of any one client’s experience because the returns reflect an average of all, or a sample of all, the experiences of the adviser’s clients.*The performance is PRELIMINARY and GROSS of investment advisory fees and includes the reinvestment of all income. Gross returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. For example, a 0.50% annual fee deducted quarterly (0.125%) from an account with a ten year annualized growth rate of 5% will produce a net result of 4.4%. Actual performance results will vary from this example.

Downside protection aims to avoid significant portfolio losses.

Lower downside capture has led to excess returnsFive-year annualized rolling returns since inception December 31, 1999 through June 30, 2018*

London Company Income Equity Russell 1000 Value

-10%

-5%

0%

5%

10%

15%

20%

25%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

How you have done2 • Portfolio characteristics• Annualized and calendar year performance

9 |

10 |

Income Equity portfolio review: 2Q 2018

Source: Factset, eVestment as of 6/30/18. For complete strategy disclosure, please see appendix in section 5 of this presentation.Past performance should not be taken as a guarantee of future performance.* The performance is GROSS of investment advisory fees and includes the reinvestment of all income. Gross returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. For example, a 0.50% annual fee deducted quarterly (0.125%) from an account with a ten year annualized growth rate of 5% will produce a net result of 4.4%. Actual performance results will vary from this example.The information discussed herein relates to a representative account or composite1, therefore not every client’s account will have these exact characteristics.

0%

5%

10%

15%

20%

25%

Portfolio characteristics Sector weightings (%)


ConsumerStaples Energy Financials

HealthCare Industrials Technology Materials

RealEstate Telecom Utilities

Income Equity 11.8 9.5 4.5 15.0 6.4 17.1 24.4 2.2 3.2 2.8 3.1

R1000V 8.3 7.3 11.1 23.3 13.9 7.9 9.9 4.1 4.9 3.6 5.7

Top ten weightings (%)Holding Symbol Sector WeightingApple AAPL Technology 5.5Norfolk Southern NSC Industrials 5.4General Dynamics GD Industrials 5.0Wells Fargo WFC Financials 4.9Microsoft MSFT Technology 4.6BlackRock BLK Financials 4.3Carnival CCL Consumer Discretionary 4.1Target TGT Consumer Discretionary 4.0Cisco CSCO Technology 3.9Intel INTC Technology 3.7TOTAL 45.4

Return characteristics*Since inception December 31, 1999

Income Equity R1000V

Down Market Capture (%) 59.6 —

Up Market Capture (%) 73.1 —

Cumulative Return1 (%) 378.0 229.8

Sharpe Ratio 0.7 0.4

Standard Deviation 10.6 14.5

Alpha 4.2 —

Beta 0.7 1.0

Income Equity R1000V

Number of Holdings 31 729

Active Share 81.6 —

Weighted Avg Mkt Cap ($B) 189.0 115.5

Median Mkt Cap ($B) 80.0 10.0

Dividend Yield (%) 2.7 2.5

Pre-tax ROC (3 yr. avg) 19.8 9.2

Net Debt/EBITDA 1.7x 2.6x

Enterprise Value/EBITDA 13.0x 11.5x

11 |

Income Equity performance review

For complete strategy and index performance disclosure, and GIPS® compliant presentations, please see appendix in section 5 of this presentation.Past performance should not be taken as a guarantee of future performance.

-5%

0%

5%

10%

15%

QTD YTD 1 Year 3 Years 5 Years 10 Years Since Inception(12/31/99)

Annualized returns

Income Equity gross Income Equity net Russell 1000 Value

Our long-term orientation has delivered outperformance over full market cycles.

BY PERCENTAGE 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Income Equity gross 9.1 2.3 -4.8 19.4 13.2 3.9 20.5 1.8 -25.0 22.7 14.5 14.9 13.0 27.8 18.2 -0.2 11.7 14.7

Income Equity net 8.0 1.3 -5.7 18.4 12.6 3.2 19.6 1.1 -25.5 21.9 13.9 14.1 12.3 27.2 17.6 -0.7 11.3 14.3

Russell 1000 Value 7.0 -5.6 -15.5 30.0 16.5 7.1 22.3 -0.2 -36.9 19.7 15.5 0.4 17.5 32.5 13.5 -3.8 17.3 13.7

Calendar year returns

As of June 30, 2018

As of December 31, 2017

Market Observations3

12 |

13 |

Growth vs. value

1 Source: Russell Investments2,3 Source: Intrinsic ResearchPast performance should not be taken as a guarantee of future results.

1• Growth stocks again performed well in the second quarter. But value showed signs of life in the small cap segment.

• The large cap growth cumulative lead over value for this cycle widened again.

• The FANGs all outdistanced the S&P 500 in the quarter.

32

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

S&P 500

Google

Amazon

Facebook

Netflix

Percentage

FANG Performance in Q2-2018

0

2

4

6

8

10

Large Cap Mid Cap Small Cap

% R

etur

n

Russell Growth & Value Indices

Q2 2018 Performance of Growth vs. Value

Growth Value

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25

50

75

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125

150

2011 2012 2013 2014 2015 2016 2017 2018

Russell 1000 Growth ETF vs. R1000 Value ETF% Growth

Growth ETF Value ETF

14 |

Market Factors

1 Source: StrategasPast performance should not be taken as a guarantee of future results.

1

• Smaller market cap, growth, and cyclical were the leading market factors in the second quarter of 2018.

• Growth and high beta were the strongest factors over the past five years.

4.5%

1.6%

0.5%

-2.4% -2.8%-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

Small-Cap vs.Large-Cap

Cyclical vs.Defensive

High Beta vs. LowBeta

Quality vs. S&P Value vs. Growth

2Q 2018 Market Factor Attribution

21.2% 18.9%

-1.1%

-13.0%

-37.2%-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

High Beta vs.Low Beta

Cyclical vs.Defensive

Small-Cap vs.Large-Cap

Quality vs. S&P Value vs. Growth

6/30/13 to 6/30/18 Market Factor Attribution

15 |

Trade risks growing

1 Source: Empirical Research2,3 Source: StrategasPast performance should not be taken as a guarantee of future results.

• With manufacturing’s contribution to S&P 500 earnings and capitalization in excess of 40%, a trade war represents a real risk to the equity market.

• The industrial sector has started lagging, in part due to fears around trade.

• One possible mitigating factor is that, so far, the dollars at risk in tariffs are still quite a bit smaller than the dollars at work in fiscal stimulus.

92.0

93.0

94.0

95.0

96.0

97.0

98.0

99.0

100.0

101.0

102.0

Jan'17 Mar'17 May'17 Jul'17 Sep'17 Nov'17 Jan'18 Mar'18 May'18

S&P 500 Industrials Relative S&P 500(Indexed to 100 at 1/1/2017)

Steel Tariffs Announced

1

32

0%5%

10%15%20%25%30%35%40%45%50%

Earnings Capitalization GDP Non-farmEmployment

Manufacturing Share of Earnings, Capitalization, GDP & Employment

7.5 7.5 12.5 12.5 20 20 20 20

200

100

500

0100200300400500600

Stee

l/Alu

m 2

32

232

Reta

liatio

n

Chin

a 30

1

301

Reta

liatio

n (e

st)

Chin

a 30

1

301

Reta

liatio

n (e

st)

Chin

a 30

1

301

Reta

liatio

n (e

st)

Tax

Cuts

Spen

ding

Repa

ts (E

st)

1st Round 2nd Round 3rd Round

Comparing The Size of Tariffs With Incremental Fiscal Policy, CY 2018, $BN

Tariffs Estimated = $120BNFiscal Policy =

$800BN

16 |

A closer look at quality

1,3 Source: Epsilon Theory, Bloomberg – Based on Deutsche Bank Sector Neutral Quality Factor Index Using Return on Capital and Accruals2 Source: StrategasPast performance should not be taken as a guarantee of future results.

1• Over time, a market neutral comparison of the performance of higher quality names vs lower quality names has typically favored quality.

• But with the advent of Quantitative Easing (QE), higher quality names have not helped performance.

• Relative results for active managers have struggled in the age of QE.

0

200

400

600

800

1000

1200

1400

1600

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0

400

800

1200

1600

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2000 2001 2002 2003 2004 2005 2006 2007 2008

Quality Trends 2000 to 2008

S&P 500 (LHS) Quality (RHS)

The market typically favors quality over time - the blue line rising.

500

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3000

0

500

1000

1500

2000

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Quality Trends 2008 - 2018

S&P 500 (LHS) Quality (RHS)

In recent years, the market's quality bias has been missing - the blue line is falling.

50

75

100

125

150

175

200

225

250

86

91

96

101

'09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Lipper Large-Cap Core Active Managers’ Return Relative To S&P 500 vs. Global Central Banks' Assets

(Indexed to 100, 1/31/2009)

Large-CapsRel S&P, left

Central Bank Assets, right

32

17 |

Important disclosuresThe London Company was founded in 1994 in Richmond, Virginia and provides equity portfolio management services to pension, profit-sharing, foundation, corporate, investment companies, and individual investors. The firm, which is majority employee-owned, is an independent, autonomous investment management organization. The London Company of Virginia is a registered investment advisor. Registration does not imply a certain level of skill or training. More information about the advisor, including its investment strategies and objectives are more fully described in the firm’s Form ADV Part 2, which is available upon request by calling (804) 775-0317, or can be found by visitingwww.TLCadvisory.com.

Past performance should not be taken as a guarantee of future results. The report is for informational purposes only. Data, while obtained from sources we believe to be reliable, cannot be guaranteed, and all statistics are subject to change. The statements contained herein are solely based upon the opinions of The London Company and the data available at the time of publication of this report, and there is no assurance that any predicted results will actually occur. Information was obtained from third party sources which we believe to be reliable but are not guaranteed as to their accuracy or completeness. This report contains no recommendations to buy or sell any specific securities and should not be considered investment advice of any kind. In making an investment decision individuals should utilize other information sources and the advice of their investment advisor.

LCO 18-201

Appendix4

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• Composite information• Disclosures• Contact information

19 |

Income Equity composite

The London Company claims compliance with the Global Investment Performance Standards (GIPS®) and has preparedand presented this report in compliance with the GIPS standards. The London Company has been independently verifiedfor the periods 6/30/94–12/31/17. Verification assesses whether (1) the firm has complied with all the composite constructionrequirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculateand present performance in compliance with the GIPS standards. The Income Equity Composite has been examined for theperiods 12/31/99–12/31/17. The verification and performance examination reports are available upon request.

GIPS® is a registered trademark of CFA Institute. CFA Institute has not been involved in the preparation or reviewof this report/advertisement.

Year ending

Net size weighted

composite

Gross size weighted

composite

Gross size weighted

composite3-yr standard

deviation

Russell1000 Value

Index

Russell 1000 Value Index

3-yr standard deviation

Number of accounts in composite

Gross size weighted

dispersion

Total IncomeEquity

composite assets ($M)

Total Income Equity

Product assets ($M)1

Total firm AUM assets

($M)Total entity

assets ($M)2

12/31/2008 -25.50% -25.04% N/A -36.85% N/A 48 1.66% 61.6 255.7 788.0 867.1

12/31/2009 21.91% 22.66% N/A 19.69% N/A 46 4.43% 32.6 424.1 1,069.3 1,634.2

12/31/2010 13.89% 14.54% N/A 15.51% N/A 49 1.14% 42.2 938.9 1,943.0 3,252.9

12/31/2011 14.11% 14.86% 14.72% 0.39% 20.69% 54 1.15% 49.0 2,005.8 2,529.7 5,029.4

12/31/2012 12.33% 12.98% 10.53% 17.51% 15.51% 100 1.35% 178.5 3,766.8 4,688.3 8,819.7

12/31/2013 27.23% 27.82% 8.82% 32.53% 12.70% 152 0.72% 690.2 6,555.6 8,400.9 15,352.4

12/31/2014 17.56% 18.18% 7.77% 13.45% 9.20% 168 0.55% 943.6 9,371.3 8,976.7 17,964.4

12/31/2015 -0.68% -0.22% 9.89% -3.83% 10.68% 200 0.33% 1,435.5 13,905.3 10,642.2 22,855.9

12/31/2016 11.25% 11.73% 9.60% 17.34% 10.77% 244 0.23% 1,986.6 19,659.1 11,618.7 28,880.1

12/31/2017 14.25% 14.69% 8.79% 13.66% 10.20% 246 0.26% 2,728.7 21,498.4 10,682.9 29,245.6

1 Product assets include composite assets, model assets, and bundled fee assets, such as wrap program assets, and are presented as supplemental information. These include model assets managed by London. 2 Starting in 2008, total entity assets include model assets. London does not have final trading authority on model accounts and as a result, they are excluded from our GIPS AUM. These assets include model assets managed by London and are presented as supplemental information.

20 |

Income Equity disclosuresDefinition of Firm: The London Company was founded in 1994 in Richmond, Virginia and provides equity portfolio management services to pension, profit-sharing, foundation, corporate, investment companies, and individual investors. The firm, which is majority employee-owned, is an independent, autonomous investment management organization. The London Company of Virginia is a registered investment advisor. Registration does not imply a certain level of skill or training. More information about the advisor, including its investment strategies and objectives are more fully described in the firm’s Form ADV Part 2, which is available upon request by calling (804) 775-0317, or can be found by visiting www.TLCadvisory.com.

Composite Creation Date: December 31, 1999.

Composite Definition: The Income Equity strategy invests mainly in common equities with a focus on higher overall dividend yield orientation, which may be supplemented with primarily investment grade, preferred equities. This strategy has a more conservative orientation, with a focus on capital preservation, income and growth, in order to provide greater yield and downside protection relative to our Large and Mid Cap strategies. Our Income Equity strategy is designed to generate above-average, absolute returns over full market cycles. Accounts in this product composite are fully discretionary taxable and tax-exempt portfolios with no minimum dollar amount of assets. The product is measured against the Russell 1000 Value Index. There is no use of leverage, derivatives or short positions. All actual fee-paying discretionary portfolios are included in one or more composites that have been managed for a full calendar quarter with limited restrictions and similar objectives. Composite may include accounts under dual contract. A complete list and description of composites is available by calling (804) 775-0317.

Benchmark Description: The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values. Benchmark returns are not covered by the report of independent verifiers. Effective January 1, 2012, the S&P 500 was replaced with the Russell 1000 Value Index, which we believe to be a better representation of the composite strategy. As an institutional benchmark, the Russell 1000 Value Index is commonly utilized and accepted, and relevant to our client base.

Composite Construction: Composite calculations use monthly time weighted total returns using monthly valuations to calculate monthly returns and geometric linking of period returns. Composite dispersion is calculated using an asset weighted standard deviation methodology that incorporates only the accounts that were present in the composite for the entire year. Dispersion measures are decreed not meaningful when a composite contains five or fewer portfolios and for periods shorter than one year.

Performance and Fees: Gross of fee returns are calculated gross of management and custodian fees and net of transaction costs. Net of fee returns are calculated net of actual management fees and transaction costs and gross of custodian and other fees. Returns may be net of miscellaneous fund expenses. Returns are calculated and stated in US dollars. Returns are calculated gross of withholding taxes on foreign dividends and interest. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

Composite Accounts: The accounts represented in the composite reflect actual fees paid on the particular account which may be different from the fee normally offered to other clients, and dividends were reinvested. Fees are normally 1.00% on the first $100 million of assets, negotiable thereafter or a performance fee option.

Some of the accounts in this composite pay a bundled fee, which includes custodian, consultant and management fees. Because of this fee arrangement, net of fee returns for these accounts only are calculated net of all fees and expenses, and therefore have an undervalued net performance prior to October 1, 2014. Beginning October 1, 2014, management fees are separated from the bundled fee for performance calculation purposes, and net of fee returns for these accounts are calculated net of transaction costs and management fees, and gross of all other fees within the bundled fee. Total percentage of non-fee paying accounts in the composite was 0.3% in 2009, 6.1% in 2010, 6.1% in 2011, 2.0% in 2012, 0.8% in 2013, 0.7% in 2014, 0.5% in 2015, 0.1% in 2016, and 0.1% in 2017. The percentage of composite assets with bundled fees was 75.0% in 2008, 55.2% in 2009, 45.9% in 2010, 38.2% in 2011, 14.6% in 2012, 9.2% in 2013, 9.6% in 2014, 5.5% in 2015, 5.6% in 2016, and 4.1% in 2017.

Past performance should not be taken as a guarantee of future results. The report is for informational purposes only. Data, while obtained from sources we believe to be reliable, cannot be guaranteed, and all statistics are subject to change. The statements contained herein are solely based upon the opinions of The London Company and the data available at the time of publication of this report, and there is no assurance that any predicted results will actually occur. Information was obtained from third party sources which we believe to be reliable but are not guaranteed as to their accuracy or completeness. This report contains no recommendations to buy or sell any specific securities and should not be considered investment advice of any kind. In making an investment decision individuals should utilize other information sources and the advice of their investment advisor.

21 |

Contact information

Tim McCoyHead of Business Development [email protected] 804.709.1225

Paul Foster, CFAHead of Consultant Relations [email protected] 804.709.1227

Andrew Tuite Institutional Sales [email protected] T 804.709.1229

T 804.775.0317F [email protected]

The London Company of Virginia, LLC1800 Bayberry Court, Suite 301Richmond, VA 23226

LCO 18-248

gwinnett county, georgia investment committee of the rpmc...sep 14, 2018 · illumina, inc. 1.11...

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