City of Phoenix Employees' Retirement System · Key Economic Indicators Treasury Yield Curve (%)...

City of Phoenix Employees'Retirement SystemInvestment Performance Analysis

Period Ended: June 30, 2015

Capital Markets Review As of June 30, 2015

Economic Indicators Jun-15 Mar-15 Jun-14 Jun-12 20 Yr0.08 ▲ 0.06 0.09 0.09 2.740.73 ▼ 1.46 1.46 -0.09 N/A1.89 ▲ 1.78 2.24 2.10 N/A0.1 ▲ -0.1 2.1 1.7 2.35.3 ▼ 5.5 6.1 8.2 6.02.3 ▼ 2.9 2.6 2.5 2.4

53.50 ▲ 51.50 55.70 51.30 52.0089.94 ▼ 92.06 75.73 74.50 86.43

59 ▲ 48 105 85 541,172 ▼ 1,184 1,327 1,597 723

Market Performance (%) CYTD 1 Yr 5 Yr 10 Yr1.23 7.42 17.34 7.894.75 6.49 17.08 8.405.52 -4.22 9.54 5.12

10.15 -0.77 12.40 6.592.95 -5.12 3.69 8.11

-0.10 1.86 3.35 4.440.01 0.02 0.08 1.427.34 14.43 14.41 6.85

-5.73 5.21 14.73 6.922.60 3.44 3.97 2.94

-1.56 -23.71 -3.91 -2.62

QTD0.280.420.624.340.69

-1.680.013.82

-9.930.064.66

BofA ML 3 Mo US T-BillNCREIF ODCE (Gross)Wilshire US REITHFN FOF Multi-StratBloomberg Cmdty (TR)

Real GDP YoY (%)

USD Total Wtd IdxWTI Crude Oil per Barrel ($)Gold Spot per Oz ($)

S&P 500 (Cap Wtd)

PMI - Manufacturing

Unemployment Rate (%)

Federal Funds Rate (%)Breakeven Infl. - 1 Yr (%)Breakeven Infl. - 10 Yr (%)CPI YoY (Headline) (%)

Key Economic Indicators

Treasury Yield Curve (%)

Key Economic IndicatorsMarket activity in the second quarter of 2015 saw the reversal of several major trends. First, US Dollar strength dissipated to a degree, as it sold off almost 3% relative to other developed currencies. Second, developed market interest rates, which had been trending lower and were negative in some markets, reversed sharply. Finally, oil prices, in part helped by weakness in the US Dollar, bounced off the Q1 lows and finished the second quarter higher. Relatively benign equity volatility in April and May gave way to heightened volatility in the second half of June, with investors fixated on Greece’s debt situation and government intervention in China. Still, global equity markets generally finished the quarter with small gains. Uninspiring first half economic data across a number of categories was enough to convince the Federal Reserve to maintain interest rates at 0%. The Board cited below target inflation, softer GDP growth, and lower labor productivity as reasons to be wary of increasing rates. Economic data released during the second quarter was largely consistent with that view.

Second Quarter Economic Environment

UnemploymentRate (%)

Since 1948

CPI Year-over-Year (% change)

Since 1914

US Govt Debt (% of GDP)Since 1940

VIX Index(Volatility)Since 1990

Consumer ConfidenceSince 1967

Russell 2000MSCI EAFE (Net)MSCI EAFE SC (Net)MSCI Emg Mkts (Net)Barclays US Agg Bond

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

3M 6M 1Y 3Y 5Y 7Y 10Y 20Y 30Y

Jun-15 Mar-15 Jun-14 Jun-13 Jun-12

0

2

4

6

8

10

12

20

40

60

80

100

120

0

10

20

30

40

50

60

70

20

40

60

80

100

120

140

160

-20-15-10-505

1015202530

0.1

Treasury data courtesy of the US Department of the Treasury. Economic data courtesy of Bloomberg Professional Service.Breakeven Inflation does not have 20 years of history; therefore, its 20-year average is shown as N/A.

Page 1

US Equity Review As of June 30, 2015

Broad MarketThe US equity market ended the quarter relatively flat as market turmoil overseas impacted domestic markets in June and erased otherwise positive April and May performance. Market CapLarge-cap stocks experienced mainly flat performance, while mid-cap stocks faced strong headwinds and ended in negative territory. Micro- and small-cap stocks were the top performers during the quarter.StyleThe Russell 3000 Index finished the quarter returning 0.14%, with growth moderately outperforming value. Within the micro- and small-cap segments, growth outperformed value by 414 and 318 basis points, respectively.SectorInvestors with exposure to the consumer discretionary and health care sectors benefited from gains in those segments. The energy, industrials, REIT and utilities sectors posted notably negative performance.

Style and Capitalization Market Performance (%)

S&P 500 Index Sector Performance (%)

Second Quarter Review

Valuations

US Large-Cap Equity

R1000 12M P/ESince 1995

US Small-Cap Equity

R2000 12M P/ESince 1995

US Large-Cap Value Equity

R1000V 12M P/ESince 1995

US Large-Cap Growth Equity

R1000G 12M P/ESince 1995

US Large-Cap Equity

Shiller S&P 10Y P/ESince 1900

12.34

10.56

0.78

4.13

6.49

7.37

7.42

7.29

1.98

0.12

-1.20

0.11

0.42

0.11

0.28

0.14

-5 0 5 10 15 20

R 2000 Growth

R 1000 Growth

R 2000 Value

R 1000 Value

R 2000

R 1000

S&P 500

R 3000 QTD

1 Yr

-2.90

1.89

-1.08

11.10

2.37

24.17

9.34

-22.20

9.41

16.45

-5.80

1.59

-0.48

0.19

-2.23

2.84

1.72

-1.88

-1.74

1.92

-40 -20 0 20 40

Utilities

TeleCom

Materials

Information Tech

Industrials

Health Care

Financials

Energy

Cons Staples

Cons Discretion

QTD

1 Yr

0

5

10

15

20

25

30

10

15

20

25

30

20

40

60

80

100

10

15

20

25

10

20

30

40

50

Valuation data courtesy of Bloomberg Professional Service and Robert J. Shiller, Irrational Exuberance, Second Edition.P/E metrics shown represent the 5th through 95th percentiles to minimize the effect of outliers.

Page 2

Non-US Equity Review As of June 30, 2015

Developed IntlEquity

MSCI EAFE12M P/E

Since 1995

Intl EquityMSCI ACW x US

12M P/ESince 1995

MSCI Style and Capitalization Market Performance (%)

MSCI Region Performance (%)

EmergingMarkets Equity

MSCI EM12M P/E

Since 1995

Developed Intl Growth EquityMSCI EAFE Gro

12M P/ESince 1995

Developed Intl Value Equity

MSCI EAFE Val12M P/E

Since 1995


Valuations

Broad MarketDuring the second quarter of 2015, international markets, both developed and emerging, outperformed the US markets by 48 and 55 bps, respectively. Market Cap & StyleWithin the developed markets, growth stocks continued to outperform value stocks; while within emerging markets, value stocks outperformed growth stocks. On average, small-cap stocks tended to outperform their larger-cap counterparts.Developed MarketsThe strongest contributor to performance for the quarter, as measured by the MSCI EAFE Index, was Japan. Japan reported 2.4% GDP growth for the previous quarter, giving some confidence that Abenomics has started to work. Emerging MarketsThe emerging markets slightly outperformed their developed counterparts. Greece’s debt crisis dominated the headlines yet its equity markets actually saw positive performance for the quarter. Over the past year, the Shanghai composite has risen over 150%, partially fueled by government intervention.

-5.12

2.70

-7.65

-0.77

-1.33

-7.09

-4.22

-5.26

0.69

1.14

0.36

4.34

1.01

0.22

0.62

0.53

-20 -10 0 10 20

Emg Mkts

Pacific

Europe

EAFE SC

EAFE Growth

EAFE Value

EAFE

ACW Ex US QTD

1 Yr

-5.12

-15.32

8.31

-6.79

8.80

-8.24

-7.39

0.69

-0.92

3.09

-2.48

-1.50

2.99

-0.79

-30 -20 -10 0 10 20 30

Emerging Markets

Canada

Japan

Pacific ex Japan

Middle East

United Kingdom

Europe Ex UK

QTD1 Yr

0

20

40

60

80

100

0

10

20

30

40

0

10

20

30

40

50

60

0

10

20

30

40

50

0

10

20

30

40

50

Valuation data courtesy of Bloomberg Professional Service.P/E metrics shown represent the 5th through 95th percentiles to minimize the effect of outliers.All returns are shown net of foreign taxes on dividends.

Page 3

Fixed Income Review As of June 30, 2015

Fixed Income Performance (%)Broad MarketFixed income markets were down as rates rose and credit spreads widened. The Barclays US Aggregate Bond Index was down 1.68% posting negative returns for all three months of Q2 – the first 3-month negative run since 2008. Reduced liquidity in fixed income markets has led to higher market price volatility and increased trading costs.

US Treasury MarketThe 10- and 30-year Treasury yields rose by 40 and 57 basis points, respectively, in anticipation of a Fed funds rate hike. Long duration bonds suffered accordingly. Foreign CurrencyGovernment bond yields for many of the larger European countries bottomed out in April and climbed through the month of May and June as questions arose about whether Greece would be able to service its debt. Hard currency emerging market debt outperformed local currency for the ninth consecutive quarter.


Valuations

US Aggregate Bonds

Barclays US Agg Spreads

Since 2000

US Corporate Bonds

Barclays US Corp Spreads

Since 1989

US CreditBonds

Barclays US Credit Spreads

Since 2000

US Treasury Bonds10-Yr US Treasury

YieldsSince 1953

US High-Yield Bonds

Barclays US Corp:HY Spreads

Since 2000

4.99

-1.57

-9.02

-7.09

2.15

-0.40

1.64

2.28

1.95

0.75

2.00

-1.73

2.31

1.86

-0.26

-0.29

-1.55

-1.18

0.79

0.00

0.17

-0.74

-0.56

-3.16

-1.11

-1.06

-1.58

-1.68

-15 -5 5 15

JPM GBI-EM Glbl Dvf'd

JPM Emg Mkts Bond Global

Citi Wrld Gov't Bond

Barclays Global Agg Bond

CS Leveraged Loan

Barclays US Corp: Hi Yld

Barclays US ABS

Barclays US MBS

Barclays US Agcy

Barclays US Corp: Credit

Barclays US CMBS Inv Grade

Barclays US Trsy: US TIPS

Barclays US Trsy

Barclays US Agg QTD

1 Yr

0

2

4

6

8

10

12

14

0.0

0.2

0.4

0.6

0.8

1.0

1.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0

2

4

6

8

10

12

Valuation data courtesy of Bloomberg Professional Service.Valuations shown represent the 5th through 95th percentiles to minimize the effect of outliers.

Page 4

Alternatives Review As of June 30, 2015

General Market - Diversified Inflation Strategies (DIS)Even with low short-term inflation expectations, disparate measures of inflation, a difficult quarter for equities and rising real yields, most diversified inflation strategies outperformed a moderate duration TIPS allocation. Managers with larger energy and agricultural commodities exposures saw a key reversal of their underperformance from earlier in the year. Managers with larger US REIT equity allocations underperformed. Managers with larger TIPS exposures, especially those in longer duration securities, underperformed the broader group.

General Market - Real EstateWhile real estate securities returns were hampered by rising long-term interest rates in Q2, as evidenced by a -8.93% return in the FTSENAREIT All REITS Index, private real estate continued its run of strong, positive returns. Preliminary reports from the NCREIF ODCE Index show that US Core Real Estate returned 3.82% for the quarter and 14.43% for the trailing year, marking the 21st consecutive quarter of positive returns in this sector.

General Market - Hedge FundsMost hedge fund strategies generated positive returns in the second quarter, adding to gains realized in Q1. Long/Short equity funds in particular are having a strong 2015. Top tier managers have added alpha on both their long and short positions as they were able to capture the majority of equity market upside during the months of April and May, and protected capital well toward the end of June as markets sold off.

General Market - Global Tactical Asset Allocation (GTAA)In April and May, most GTAA managers posted gains and outperformed a relatively-undiversified, US-centric 60/40 allocation; however, the majority posted losses for the quarter due to the volatility that occurred in June. In a break from performance characteristics of the past two quarters, valuation driven managers outperformed growth-oriented equity strategies. Thematic and/or secular focuses on yield-oriented holdings, however, were a keydeterminant in the underperformance of several managers as yield-sensitive equities, especially REITs, lagged.

Second Quarter Review - Absolute Return

HFN Hedge Fund Performance (%)

Second Quarter Review - Real Assets

Real Asset Performance (%)

0.37

2.18

2.49

2.14

3.68

-6.01

2.14

4.07

5.10

-2.29

3.44

0.21

1.00

1.24

0.04

-1.95

-0.48

-0.04

0.52

1.38

0.76

0.06

-10 -5 0 5 10

FI ArbitrageMerger/Risk Arb

Event DrivenRelative Value

MacroDistressedShort Bias

Mkt Neutral EqLong/Short EqConv ArbitrageFOF Multi-Strat QTD

1 Yr

-1.73

-19.81

-17.58

-23.71

5.21

12.96

14.43

-1.06

-6.09

0.12

4.66

-9.93

3.14

3.82

-45 -30 -15 0 15 30 45

Barclays US Trsy: US TIPS

Alerian MLP

S&P Glbl Nat. Res. (TR)

Bloomberg Cmdty (TR)

Wilshire US REIT

NCREIF Property

NCREIF ODCE (Gross) QTD

1 Yr

Page 5

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD

Best9.70 25.91 62.14 31.27 34.54 32.59 39.78 8.44 79.02 26.86 22.49 20.42 38.82 19.31 10.40

8.44 16.56 56.28 25.95 26.65 27.16 17.12 5.24 58.21 22.40 15.99 18.64 32.39 13.69 7.34

7.89 14.81 47.25 21.36 21.39 26.86 16.23 -2.35 47.32 19.20 13.56 17.90 29.69 12.50 5.88

7.28 13.65 41.41 20.70 21.36 19.67 15.97 -10.01 42.14 16.83 7.84 17.44 23.29 7.43 4.75

6.61 10.25 39.17 18.33 17.11 18.37 11.63 -12.03 32.46 16.36 7.35 17.39 15.78 5.97 4.35

5.64 5.54 28.97 13.06 14.02 16.32 11.63 -20.47 29.82 15.12 4.98 16.34 13.94 4.89 3.12

5.28 3.12 28.68 11.62 10.25 15.79 9.91 -26.16 27.18 15.06 2.11 16.00 9.10 3.64 2.60

2.49 -1.41 23.93 11.13 6.75 11.85 6.97 -33.79 26.46 12.24 -4.18 15.81 7.44 3.03 2.53

-2.37 -6.00 22.21 10.88 5.33 9.86 6.60 -35.65 18.91 11.60 -5.55 10.94 -2.02 2.45 1.67

-11.89 -7.44 11.93 9.15 4.91 9.85 6.16 -37.00 11.41 10.16 -11.73 8.82 -2.27 -1.82 1.23

-12.11 -14.67 9.28 8.56 4.55 4.33 5.49 -43.06 9.72 8.21 -13.32 6.98 -5.25 -3.44 0.34

-19.48 -15.66 8.39 8.46 2.84 2.71 1.87 -45.24 5.93 6.54 -13.33 4.80 -8.61 -4.48 -0.10

-19.51 -20.48 5.87 6.79 2.74 2.07 1.79 -46.78 1.92 6.31 -15.66 4.21 -8.83 -4.63 -1.56

Worst-21.21 -22.10 4.10 4.34 2.43 0.41 -1.57 -53.18 -29.76 4.77 -18.17 -1.06 -9.52 -17.01 -4.47

S&P 500 -US Large

Cap

R 2000 -US Small

Cap

MSCI EAFE(Gross) -Int'l Dev.

MSCI ACWEx USIndex

(Gross) -Int'l

MSCI EAFESC (Gross)

- Int'l SC

MSCI EM(Gross) -Int'l Emg

Mkts

BarclaysUS Agg

Bond - FI

BarclaysUS Corp:

Hi Yield - FI

BarclaysUS Trsy:US TIPS -

FI

BarclaysUS

Gov/Credit:Lng - FI

JPM EMBIGlobal

Dvf'd Index- EMD

NCREIFODCE

(Gross) -Real Estate

HFN FOFMulti-Strat(Net) - ARS

BloombrgCmdty (TR)- Commod.

Annual Asset Class Performance As of June 30, 2015

Page 6

COPERS Target Asset Allocation

Allocations shown may not sum up to 100% exactly due to rounding. The 2015 RVK Assumptions were used for this analysis.

Min MaxCurrent

Allocation

Interim

Target60/40

Capital Appreciation 53 55 60

Broad US Equity 20 55 24 22 18 60

Broad International Equity 15 40 19 19 16 0

Emerging Market Debt 0 5 5 5 5 0

Non-Core Real Estate 0 9 4 8 8 0

Private Equity 0 5 0 1 3 0

Capital Preservation 20 20 40

Int. Duration Fixed Income 15 30 20 20 20 40

Inflation 16 15 0

Diversified Inflation Strats 0 8 7 8 8 0

Core Real Estate 7 10 8 7 7 0

Alpha 12 10 0

ARS/GTAA 0 15 12 10 15 0

Long/Short Equity 0 0 0 0 0 0

Total 100 100 100

Expected Return 6.50 6.61 5.63

Risk (Standard Deviation) 10.60 10.57 11.29

5.98 6.09 5.03

0.61 0.63 0.50

0.54 0.53 0.62

73 71 91

- Increased Allocation - New Asset Class

- Decreased Allocation - Replace Asset Class

Approved

TargetEfficient Frontier

66

100

15

15

20

6.60

10.15

6.12

0.65

0.50

Return (Compound)

Return/Risk Ratio

RVK Expected Eq Beta (LC US Eq = 1)

RVK Liquidity Metric (T-Bills = 100)

50

Current Allocation

Interim Target

60/40

Approved Target

5.50

5.75

6.00

6.25

6.50

6.75

7.00

7.25

7.50

7.75

8.00

8.5 9.0 9.5 10.0 10.5 11.0 11.5 12.0 12.5 13.0 13.5 14.0 14.5

Re

turn

(A

nn

ua

lize

d, %

)

Risk (Annualized Standard Deviation, %)

Page 7

Asset Allocation By Manager

Schedule of Investable Assets

June 30, 2015 : $2,224,663,691 Market Value($)

Allocation(%)

Aberdeen Total Return Bond 169,149,419 7.60

PIMCO:All Asset;Inst (PAAIX) 166,073,362 7.47

Baillie Gifford IE Growth 157,095,855 7.06

GMO Global Equity Allocation 151,558,668 6.81

PIMCO Total Return 149,602,466 6.72

PAAMCO Newport Phoenix 135,955,898 6.11

Robeco LCV 130,054,980 5.85

Artisan Global Opportunities 123,668,741 5.56

SSgA FTSE RAFI US Low Vol 122,847,731 5.52

MFS Emerging Markets Debt 103,301,123 4.64

JP Morgan Real Estate 93,762,322 4.21

Morgan Stanley Real Estate 88,316,733 3.97

Western Asset Mgmt Co 87,232,633 3.92

SSgA MSCI ACW Ex US Index 67,037,216 3.01

Fir Tree International Value 62,317,566 2.80

Carlson Double Black Diamond 61,109,162 2.75

Eagle Asset Mgmt SCG 55,447,807 2.49

Mondrian IE SC 54,785,324 2.46

Cramer Rosenthal McGlynn SCV 54,006,624 2.43

The Boston Company MC Opportunistic Value 45,423,762 2.04

Dreyfus Gvt Csh Mgt;Inst (DGCXX) 38,585,958 1.73

JDM Partners Opportunity Fund I 25,983,853 1.17

Real Estate Capital Asia Partners III TE LP 19,496,891 0.88

Wheelock Street Partners 15,393,887 0.69

Northwood Series IV 13,040,055 0.59

Neuberger Berman Sonoran 7,950,000 0.36

TA Associates Realty Fund IX 7,599,387 0.34

Northwood Series V 6,940,450 0.31

Wheelock Street Partners II 5,638,452 0.25

Real Estate Capital Asia Partners IV TE LP 3,232,508 0.15

Wrightwood Capital High Yield Partners II LP 1,378,912 0.06

Real Estate Capital Asia Partners II TE LP 675,945 0.03

Periods EndingBeginning

Market Value ($)Net

Cash Flow ($)Gain/Loss ($)

EndingMarket Value ($)

% Return Unit Value

CYTD 2,195,553,118 -39,289,633 68,400,206 2,224,663,691 3.14 103.14

City of Phoenix Employees' Retirement SystemTotal Fund CompositeAsset Allocation by Manager and Schedule of Investable Assets

As of June 30, 2015

Performance shown is gross of fees. Allocations may not sum up to 100% exactly due to rounding. Cadence Capital Mgmt LCG and K2 Advisors Long/Short Equity have completed liquidation and final proceeds have been received.

Page 8

Asset Allocation vs. Target Allocation Asset Allocation vs. Target Allocation Differences

Asset Allocation vs. All Pension Plans ($1B to $5B) (Custom PG)

Market Value($)

Allocation(%)

Target(%)

Domestic Equity 531,449,645 23.89 22.00

International Equity 430,477,063 19.35 19.00

Domestic Fixed Income 405,984,518 18.25 20.00

Emerging Markets Debt 103,301,123 4.64 5.00

Real Return 166,073,362 7.47 8.00

Real Estate 281,459,395 12.65 15.00

Private Equity 7,950,000 0.36 1.00

Absolute Return 259,382,626 11.66 10.00

Cash Equivalent 38,585,958 1.73 0.00

Total Fund 2,224,663,691 100.00 100.00

US Equity Intl. Equity US Fixed Income Intl. Fixed Income Alternative Inv. Real Estate Cash

Total Fund Composite 18.33 (82) 24.91 (14) 18.25 (82) 4.64 (39) 19.48 (28) 12.65 (2) 1.73 (44)

Median 30.78 15.21 27.99 3.11 10.26 5.35 1.62

Population 124 120 116 48 74 61 74

City of Phoenix Employees' Retirement SystemTotal Fund Composite vs. All Pension Plans ($1B to $5B) (Custom PG)Asset Allocation vs. Target and Plan Sponsor Peer Group

As of June 30, 2015

Parentheses contain percentile ranks. Allocation shown may not sum up to 100% exactly due to rounding. Artisan Global Opportunities is located in the "Intl. Equity" segment.

Page 9

Asset Allocation by Theme Thematic Analysis - April 1, 2007 to June 30, 2015

Asset Allocation by Liquidity Correlation Matrix - 10 Years

A B C D

A 1.00

B 0.63 1.00

C -0.33 -0.26 1.00

D 0.57 0.85 -0.03 1.00

A = HFN Mkt Neut Eq Index (Alpha)B = MSCI ACW Index (Capital Appreciation)C = Barclays US Gov't Bond Index (Capital Preservation)D = Real Return Custom Index (Inflation)

RVK Liquidity Rating 72

City of Phoenix Employees' Retirement SystemTotal Fund Composite - Thematic and Liquidity Analysis

As of June 30, 2015

Asset Allocation by Theme is based on dedicated manager allocations; as such, thematic allocations are approximations. The RVK Liquidity Rating is calculated using beginning of month investment weights applied to each corresponding asset class liquidity rating. Please see the Glossary for additional information regarding liquidity, thematic and custom index descriptions.

Page 10

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

Total Fund Composite 2,224,663,691 100.00 0.89 3.14 2.64 2.64 9.82 9.92 5.43 7.97 12/01/1987

Target Allocation Benchmark 0.67 3.19 3.93 3.93 9.87 10.19 5.36 8.73

Difference 0.22 -0.05 -1.29 -1.29 -0.05 -0.27 0.07 -0.76

All Pension Plans ($1B to $5B) (Custom PG) Median -0.29 2.21 2.83 2.83 10.25 10.70 6.87 9.09

Rank 7 10 56 56 56 70 96 97


Actual Allocation Benchmark 0.58 3.01 3.38 3.38 9.69 9.78 5.44 N/A

Difference 0.31 0.13 -0.74 -0.74 0.13 0.14 -0.01 N/A

All Pension Plans ($1B to $5B) (Custom PG) Median -0.29 2.21 2.83 2.83 10.25 10.70 6.87 9.09

Rank 7 10 56 56 56 70 96 97

Domestic Equity Composite 531,449,645 23.89 1.44 3.31 6.66 6.66 18.31 17.25 8.32 8.07 03/01/2005

Russell 3000 Index 0.14 1.94 7.29 7.29 17.73 17.53 8.15 7.93

Difference 1.30 1.37 -0.63 -0.63 0.58 -0.28 0.17 0.14

IM U.S. Equity (SA+CF) Median 0.27 3.28 7.40 7.40 18.50 17.92 9.11 8.94

Rank 23 50 57 57 53 64 71 73

Robeco LCV 130,054,980 5.85 0.44 0.52 6.46 6.46 N/A N/A N/A 15.12 05/01/2013

Russell 1000 Val Index 0.11 -0.61 4.13 4.13 17.34 16.50 7.05 13.30

Difference 0.33 1.13 2.33 2.33 N/A N/A N/A 1.82

IM U.S. Large Cap Value Equity (SA+CF) Median 0.21 0.95 5.30 5.30 17.85 16.90 8.29 14.50

Rank 43 58 36 36 N/A N/A N/A 40

SSgA FTSE RAFI US Low Vol 122,847,731 5.52 -1.66 -2.41 N/A N/A N/A N/A N/A -2.41 01/01/2015

FTSE RAFI USD Lo Vol Index -1.67 -2.43 2.94 2.94 4.15 4.94 4.87 -2.43

Difference 0.01 0.02 N/A N/A N/A N/A N/A 0.02

IM U.S. Large Cap Core Equity (SA+CF) Median 0.25 1.93 8.13 8.13 17.95 17.75 8.57 1.93

Rank 93 98 N/A N/A N/A N/A N/A 98

Artisan Global Opportunities 123,668,741 5.56 4.93 10.43 N/A N/A N/A N/A N/A 8.67 12/01/2014

MSCI ACW Index (Gross) 0.52 2.97 1.23 1.23 13.61 12.52 6.97 1.02


IM Global Large Cap Growth Equity (SA+CF) Median 1.05 5.22 4.25 4.25 15.13 13.88 8.43 3.51

Rank 4 10 N/A N/A N/A N/A N/A 9

City of Phoenix Employees' Retirement SystemAsset Allocation & Performance

As of June 30, 2015

Performance shown is gross of fees with the exception of the Non-Core Real Estate Composite, the Absolute Return Composite, and their underlying managers and benchmarks, which are shown net of fees. Manager inception dates shown represent the first full month of performance following initial funding. Indices show N/A for since inception returns when the fund contains more history than the corresponding benchmark. RVK endorses GIPS and calculates performance for composites and investment managers using different methodologies. For additional information, please see the Glossary.

Page 11


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

The Boston Company MC Opportunistic Value 45,423,762 2.04 0.77 2.13 5.57 5.57 21.98 19.57 11.87 12.27 05/01/2002

Russell Mid Cap Index -1.54 2.35 6.63 6.63 19.26 18.23 9.40 10.03

Difference 2.31 -0.22 -1.06 -1.06 2.72 1.34 2.47 2.24

IM U.S. Mid Cap Equity (SA+CF) Median -0.41 4.72 8.65 8.65 19.24 18.38 10.20 10.18

Rank 31 82 77 77 11 30 15 6

Cramer Rosenthal McGlynn SCV 54,006,624 2.43 0.77 4.69 6.94 6.94 18.08 16.62 N/A 9.19 02/01/2008

Russell 2000 Val Index -1.20 0.76 0.78 0.78 15.50 14.81 6.87 7.87

Difference 1.97 3.93 6.16 6.16 2.58 1.81 N/A 1.32

IM U.S. Small Cap Value Equity (SA+CF) Median -0.03 3.08 3.65 3.65 18.42 17.16 9.37 10.62

Rank 34 27 21 21 55 63 N/A 76

Eagle Asset Mgmt SCG 55,447,807 2.49 4.51 8.24 11.66 11.66 19.89 19.23 12.01 12.01 07/01/2005

Russell 2000 Grth Index 1.98 8.74 12.34 12.34 20.11 19.32 9.86 9.86

Difference 2.53 -0.50 -0.68 -0.68 -0.22 -0.09 2.15 2.15

IM U.S. Small Cap Growth Equity (SA+CF) Median 2.25 8.46 10.79 10.79 20.15 19.88 10.58 10.58

Rank 13 53 46 46 54 61 16 16

International Equity Composite 430,477,063 19.35 1.68 5.06 -2.45 -2.45 11.23 10.19 5.59 5.19 03/01/2005

Int'l Equity Custom Benchmark 1.19 4.88 -4.57 -4.57 10.26 8.43 4.83 4.34

Difference 0.49 0.18 2.12 2.12 0.97 1.76 0.76 0.85

IM International Equity (SA+CF) Median 1.45 5.84 -2.15 -2.15 12.26 10.22 7.34 6.86

Rank 45 59 54 54 61 51 85 83

GMO Global Equity Allocation 151,558,668 6.81 0.62 3.30 -3.98 -3.98 N/A N/A N/A 5.92 10/01/2013


Difference 0.10 0.33 -5.21 -5.21 N/A N/A N/A -2.83

IM Global Equity (SA+CF) Median 0.82 3.87 2.37 2.37 14.94 13.80 7.68 9.37

Rank 57 60 86 86 N/A N/A N/A 82

SSgA MSCI ACW Ex US Index 67,037,216 3.01 0.61 4.17 -5.06 -5.06 9.70 N/A N/A 3.54 08/01/2011

MSCI ACW Ex US Index (Gross) 0.72 4.35 -4.85 -4.85 9.92 8.23 6.01 3.76

Difference -0.11 -0.18 -0.21 -0.21 -0.22 N/A N/A -0.22

IM International Equity (SA+CF) Median 1.45 5.84 -2.15 -2.15 12.26 10.22 7.34 5.91

Rank 69 67 73 73 70 N/A N/A 73


Page 12


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

Baillie Gifford IE Growth 157,095,855 7.06 2.30 6.49 0.34 0.34 11.69 N/A N/A 6.17 07/01/2011


Difference 1.58 2.14 5.19 5.19 1.77 N/A N/A 2.84

IM International Growth Equity (SA+CF) Median 1.88 7.10 -0.11 -0.11 12.95 11.32 7.53 6.33

Rank 42 63 42 42 75 N/A N/A 52

Mondrian IE SC 54,785,324 2.46 4.11 6.89 -1.95 -1.95 11.91 N/A N/A 6.47 07/01/2011

MSCI Wrld Ex US Sm Cap Index (Gross) 4.32 8.62 -3.61 -3.61 14.00 11.50 6.68 5.81

Difference -0.21 -1.73 1.66 1.66 -2.09 N/A N/A 0.66

IM International Small Cap Equity (SA+CF) Median 4.83 10.78 0.51 0.51 17.62 14.10 8.99 8.78

Rank 68 87 73 73 94 N/A N/A 86

Domestic Fixed Income Composite 405,984,518 18.25 -1.76 -0.10 1.31 1.31 2.25 4.13 5.08 5.15 03/01/2005

Barclays US Agg Bond Index -1.68 -0.10 1.86 1.86 1.83 3.35 4.44 4.54

Difference -0.08 0.00 -0.55 -0.55 0.42 0.78 0.64 0.61

IM U.S. Broad Market Core Fixed Income (SA+CF) Median -1.61 0.09 2.05 2.05 2.37 3.91 4.88 4.96

Rank 83 80 94 94 57 34 31 31

Western Asset Mgmt Co 87,232,633 3.92 -1.66 0.30 1.88 1.88 3.60 5.10 5.17 5.19 02/01/2005


Difference 0.02 0.40 0.02 0.02 1.77 1.75 0.73 0.75


Rank 59 28 73 73 6 6 25 24

Aberdeen Total Return Bond 169,149,419 7.60 -1.94 -0.43 1.04 1.04 2.06 3.95 N/A 3.95 07/01/2010


Difference -0.26 -0.33 -0.82 -0.82 0.23 0.60 N/A 0.60


Rank 95 99 97 97 68 47 N/A 47

PIMCO Total Return 149,602,466 6.72 -1.62 0.05 1.27 1.27 1.74 3.80 N/A 3.80 07/01/2010


Difference 0.06 0.15 -0.59 -0.59 -0.09 0.45 N/A 0.45


Rank 53 61 95 95 95 61 N/A 61


Page 13


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

Emerging Markets Debt Composite 103,301,123 4.64 -0.30 2.37 1.33 1.33 N/A N/A N/A 2.06 02/01/2013

JPM EMBI Gbl Dvf'd TR Index -0.34 1.67 0.51 0.51 4.30 6.76 7.45 1.99


IM Emerging Markets Debt (SA+CF) Median -0.15 0.90 -4.24 -4.24 2.75 6.41 8.15 -0.70

Rank 57 26 8 8 N/A N/A N/A 16

MFS Emerging Markets Debt 103,301,123 4.64 -0.30 2.37 1.33 1.33 N/A N/A N/A 2.06 02/01/2013



IM Emerging Markets Debt (SA+CF) Median -0.15 0.90 -4.24 -4.24 2.75 6.41 8.15 -0.70

Rank 57 26 8 8 N/A N/A N/A 16

Real Return Composite 166,073,362 7.47 -0.02 0.31 -4.99 -4.99 0.93 1.41 N/A 1.13 07/01/2007

Consumer Price Index + 4% (Lng-Trm) 2.06 3.64 4.13 4.13 5.37 5.90 6.15 5.78

Difference -2.08 -3.33 -9.12 -9.12 -4.44 -4.49 N/A -4.65

PIMCO:All Asset;Inst (PAAIX) 166,073,362 7.47 -0.02 0.31 -5.00 -5.00 N/A N/A N/A 1.34 12/01/2013

All Asset Custom Index -0.23 0.84 0.46 0.46 5.16 6.39 5.42 3.31

Difference 0.21 -0.53 -5.46 -5.46 N/A N/A N/A -1.97


Page 14


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

Real Estate Composite 281,459,395 12.65 4.04 7.14 13.20 13.20 12.96 15.63 N/A 6.68 12/01/2006

NCREIF ODCE Index (Gross) (AWA) 3.82 7.34 14.43 14.43 13.11 14.41 6.85 5.31

Difference 0.22 -0.20 -1.23 -1.23 -0.15 1.22 N/A 1.37

Core Real Estate Composite 182,079,055 8.18 4.09 7.85 15.27 15.27 14.99 15.64 N/A 6.69 01/01/2009


Difference 0.27 0.51 0.84 0.84 1.88 1.23 N/A 0.84

Morgan Stanley Real Estate 88,316,733 3.97 4.50 7.89 17.28 17.28 16.04 16.66 N/A 7.01 12/01/2006


Difference 0.68 0.55 2.85 2.85 2.93 2.25 N/A 1.70

JP Morgan Real Estate 93,762,322 4.21 3.70 7.81 13.37 13.37 13.94 14.51 N/A 5.51 05/01/2007


Difference -0.12 0.47 -1.06 -1.06 0.83 0.10 N/A 0.88

Non-Core Real Estate Composite 99,380,341 4.47 3.80 5.73 9.50 9.50 9.05 16.61 N/A 8.42 02/01/2009

Wrightwood Capital High Yield Partners II LP 1,378,912 0.06 4.44 7.51 15.41 15.41 17.11 14.76 N/A 5.63 02/01/2009

TA Associates Realty Fund IX 7,599,387 0.34 3.21 6.52 15.93 15.93 11.11 9.84 N/A 9.51 05/01/2010

Real Estate Capital Asia Partners II TE LP 675,945 0.03 -0.56 -59.92 -56.77 -56.77 -12.27 -0.43 N/A -0.09 10/01/2009

Real Estate Capital Asia Partners III TE LP 19,496,891 0.88 9.48 9.48 6.68 6.68 10.35 N/A N/A 20.82 03/01/2012

Real Estate Capital Asia Partners IV TE LP 3,232,508 0.15 -8.68 N/A N/A N/A N/A N/A N/A -8.68 02/01/2015

JDM Partners Opportunity Fund I 25,983,853 1.17 3.40 3.40 2.79 2.79 -0.07 14.05 N/A 12.71 02/01/2010

Wheelock Street Partners 15,393,887 0.69 7.39 19.84 38.11 38.11 18.37 N/A N/A 17.83 06/01/2012

Wheelock Street Partners II 5,638,452 0.25 23.30 29.84 N/A N/A N/A N/A N/A 17.87 09/01/2014

Northwood Series IV 13,040,055 0.59 -2.44 3.78 4.44 4.44 N/A N/A N/A 3.33 02/01/2014

Northwood Series V 6,940,450 0.31 -4.63 N/A N/A N/A N/A N/A N/A -4.63 02/01/2015


Page 15


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

Private Equity Composite 7,950,000 0.36 0.00 N/A N/A N/A N/A N/A N/A 0.00 04/01/2015

Neuberger Berman Sonoran 7,950,000 0.36 0.00 N/A N/A N/A N/A N/A N/A 0.00 04/01/2015

Absolute Return Composite 259,382,626 11.66 0.40 2.79 0.87 0.87 N/A N/A N/A 4.39 01/01/2014

ARS Custom Benchmark -0.11 2.44 3.39 3.39 6.08 3.99 3.16 3.68

Difference 0.51 0.35 -2.52 -2.52 N/A N/A N/A 0.71

PAAMCO Newport Phoenix 135,955,898 6.11 -0.20 3.01 0.92 0.92 N/A N/A N/A 4.40 01/01/2014

HFRI FOF Comp Index 0.20 2.71 3.97 3.97 6.28 4.10 3.21 4.07

Difference -0.40 0.30 -3.05 -3.05 N/A N/A N/A 0.33

Carlson Double Black Diamond 61,109,162 2.75 1.63 2.60 N/A N/A N/A N/A N/A 1.85 08/01/2014

HFN Multi-Strat Index (Net) -0.46 2.15 2.54 2.54 6.32 4.66 4.84 2.86

Difference 2.09 0.45 N/A N/A N/A N/A N/A -1.01

Fir Tree International Value 62,317,566 2.80 0.50 2.47 N/A N/A N/A N/A N/A 3.86 11/01/2014



Cash Equivalent Composite 38,585,958 1.73 0.22 0.45 1.60 1.60 1.91 2.48 1.94 2.12 03/01/2005

BofA ML 3 Mo US T-Bill Index 0.01 0.01 0.02 0.02 0.06 0.08 1.42 1.46

Difference 0.21 0.44 1.58 1.58 1.85 2.40 0.52 0.66

The Target Allocation Benchmark is calculated monthly and currently consists of 22% Russell 3000 Index, 19% MSCI ACW Ex US IM Index (Gross), 20% Barclays US Agg BondIndex, 5% JPM EMBI Gbl Dvf'd TR Index, 8% Consumer Price Index + 4%, 15% NCREIF ODCE Index (Gross) (AWA), 1% Russell 3000 Index + 3%, and 10% ARS CustomBenchmark.

The Actual Allocation Benchmark is calculated monthly using beginning of month asset class weights applied to each corresponding primary benchmark return.

The Int'l Equity Custom Benchmark consists of the MSCI EAFE Index (Gross) through May 2011 and the MSCI ACW Ex US IM Index (Gross) thereafter.

Performance for real estate funds (with the exception of JP Morgan Real Estate), NCREIF ODCE Index (Gross) (AWA), and private equity is calculated on a quarterly basis. Theinterim months assume a 0.00% return for the Target Benchmark and Actual Allocation Benchmark.

RVK cautions that the interpretation of time-weighted data on non-marketable investments such as real estate and private equity is imperfect at best and can potentially bemisleading.

The ARS Custom Benchmark is calculated monthly using beginning of month investment weights applied to each corresponding primary benchmark return from August 2014forward. Performance prior to that consists of the HFRI FOF Comp Index.

Performance for the Cash Equivalent Composite reflects securities litigation income as well as securities lending income.

Cadence Capital Mgmt LCG and K2 Advisors Long/Short Equity have completed liquidation and final proceeds have been received.


Page 16

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Total Fund Composite 2,224,663,691 100.00 3.14 4.78 13.92 13.04 0.62 12.65 13.76 -25.88 7.85

Target Allocation Benchmark 3.19 6.18 13.97 11.54 1.68 12.75 12.47 -26.52 7.92

Difference -0.05 -1.40 -0.05 1.50 -1.06 -0.10 1.29 0.64 -0.07

All Pension Plans ($1B to $5B) (Custom PG) Median 2.21 6.90 14.62 13.39 1.87 13.88 19.97 -25.76 8.39

Rank 10 87 54 58 71 74 89 55 66


Actual Allocation Benchmark 3.01 5.83 14.20 11.00 1.15 11.66 13.63 -24.73 7.01

Difference 0.13 -1.05 -0.28 2.04 -0.53 0.99 0.13 -1.15 0.84

All Pension Plans ($1B to $5B) (Custom PG) Median 2.21 6.90 14.62 13.39 1.87 13.88 19.97 -25.76 8.39

Rank 10 87 54 58 71 74 89 55 66

Domestic Equity Composite 531,449,645 23.89 3.31 8.74 35.59 16.96 -3.46 22.93 32.16 -38.78 6.79

Russell 3000 Index 1.94 12.55 33.55 16.42 1.03 16.93 28.34 -37.31 5.14

Difference 1.37 -3.81 2.04 0.54 -4.49 6.00 3.82 -1.47 1.65

IM U.S. Equity (SA+CF) Median 3.28 9.95 35.89 16.01 -0.09 19.70 31.39 -36.86 6.62

Rank 50 58 52 39 73 40 48 65 49

Robeco LCV 130,054,980 5.85 0.52 11.72 N/A N/A N/A N/A N/A N/A N/A

Russell 1000 Val Index -0.61 13.45 32.53 17.50 0.39 15.51 19.69 -36.85 -0.17

Difference 1.13 -1.73 N/A N/A N/A N/A N/A N/A N/A

IM U.S. Large Cap Value Equity (SA+CF) Median 0.95 12.21 34.31 15.75 0.37 14.63 25.36 -35.46 3.78

Rank 58 59 N/A N/A N/A N/A N/A N/A N/A

SSgA FTSE RAFI US Low Vol 122,847,731 5.52 -2.41 N/A N/A N/A N/A N/A N/A N/A N/A

FTSE RAFI USD Lo Vol Index -2.43 15.07 -1.85 4.76 10.51 2.71 8.92 3.33 4.51

Difference 0.02 N/A N/A N/A N/A N/A N/A N/A N/A

IM U.S. Large Cap Core Equity (SA+CF) Median 1.93 13.42 33.28 15.66 1.92 14.81 26.41 -35.96 7.13

Rank 98 N/A N/A N/A N/A N/A N/A N/A N/A

Artisan Global Opportunities 123,668,741 5.56 10.43 N/A N/A N/A N/A N/A N/A N/A N/A

MSCI ACW Index (Gross) 2.97 4.71 23.44 16.80 -6.86 13.21 35.41 -41.85 12.19


IM Global Large Cap Growth Equity (SA+CF) Median 5.22 4.15 26.87 17.28 -6.97 14.96 37.31 -41.36 17.79

Rank 10 N/A N/A N/A N/A N/A N/A N/A N/A


As of June 30, 2015

Performance shown is gross of fees with the exception of the Non-Core Real Estate Composite, the Absolute Return Composite, and their underlying managers and benchmarks, which are shown net of fees. Indices show N/A for since inception returns when the fund contains more history than the corresponding benchmark. RVK endorses GIPS and calculates performance for composites and investment managers using different methodologies. For additional information, please see the Glossary.

Page 17


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

The Boston Company MC Opportunistic Value 45,423,762 2.04 2.13 10.46 41.90 20.13 -3.84 25.91 61.78 -37.67 6.52

Russell Mid Cap Index 2.35 13.22 34.76 17.28 -1.55 25.47 40.48 -41.46 5.60

Difference -0.22 -2.76 7.14 2.85 -2.29 0.44 21.30 3.79 0.92

IM U.S. Mid Cap Equity (SA+CF) Median 4.72 9.71 36.06 16.26 -1.19 24.95 37.45 -40.24 9.99

Rank 82 42 16 14 69 40 4 38 66

Cramer Rosenthal McGlynn SCV 54,006,624 2.43 4.69 4.03 39.32 17.60 -12.63 29.86 30.14 N/A N/A

Russell 2000 Val Index 0.76 4.22 34.52 18.05 -5.50 24.50 20.58 -28.92 -9.78

Difference 3.93 -0.19 4.80 -0.45 -7.13 5.36 9.56 N/A N/A

IM U.S. Small Cap Value Equity (SA+CF) Median 3.08 5.35 38.36 17.47 -3.26 27.71 34.57 -32.92 -2.14

Rank 27 65 48 49 93 33 64 N/A N/A

Eagle Asset Mgmt SCG 55,447,807 2.49 8.24 5.96 36.25 18.35 -1.58 33.99 38.10 -35.70 12.81

Russell 2000 Grth Index 8.74 5.60 43.30 14.59 -2.91 29.09 34.47 -38.54 7.05

Difference -0.50 0.36 -7.05 3.76 1.33 4.90 3.63 2.84 5.76

IM U.S. Small Cap Growth Equity (SA+CF) Median 8.46 3.87 46.30 14.74 -1.63 29.01 37.63 -41.56 10.89

Rank 53 32 94 24 50 24 50 16 40

International Equity Composite 430,477,063 19.35 5.06 -2.28 16.91 19.82 -11.23 13.36 25.30 -41.70 11.87

Int'l Equity Custom Benchmark 4.88 -3.47 16.30 17.58 -12.92 8.21 32.46 -43.06 11.63

Difference 0.18 1.19 0.61 2.24 1.69 5.15 -7.16 1.36 0.24

IM International Equity (SA+CF) Median 5.84 -2.76 20.09 19.77 -13.05 15.06 39.66 -44.86 14.81

Rank 59 47 60 50 36 58 86 32 62

GMO Global Equity Allocation 151,558,668 6.81 3.30 -0.32 N/A N/A N/A N/A N/A N/A N/A



IM Global Equity (SA+CF) Median 3.87 4.16 27.23 16.79 -6.35 14.08 33.76 -40.86 11.85


SSgA MSCI ACW Ex US Index 67,037,216 3.01 4.17 -3.58 15.53 17.10 N/A N/A N/A N/A N/A

MSCI ACW Ex US Index (Gross) 4.35 -3.44 15.78 17.39 -13.33 11.60 42.14 -45.24 17.12

Difference -0.18 -0.14 -0.25 -0.29 N/A N/A N/A N/A N/A

IM International Equity (SA+CF) Median 5.84 -2.76 20.09 19.77 -13.05 15.06 39.66 -44.86 14.81

Rank 67 60 63 72 N/A N/A N/A N/A N/A


Page 18


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Baillie Gifford IE Growth 157,095,855 7.06 6.49 -2.33 16.07 23.28 N/A N/A N/A N/A N/A


Difference 2.14 1.11 0.29 5.89 N/A N/A N/A N/A N/A

IM International Growth Equity (SA+CF) Median 7.10 -3.38 23.53 20.09 -11.95 14.67 39.23 -45.55 17.42

Rank 63 35 87 23 N/A N/A N/A N/A N/A

Mondrian IE SC 54,785,324 2.46 6.89 -4.22 18.07 25.56 N/A N/A N/A N/A N/A

MSCI Wrld Ex US Sm Cap Index (Gross) 8.62 -4.99 25.99 17.93 -15.50 24.90 51.42 -47.79 3.64

Difference -1.73 0.77 -7.92 7.63 N/A N/A N/A N/A N/A

IM International Small Cap Equity (SA+CF) Median 10.78 -3.25 30.86 23.48 -13.62 23.75 46.07 -47.25 9.51

Rank 87 62 98 22 N/A N/A N/A N/A N/A

Domestic Fixed Income Composite 405,984,518 18.25 -0.10 5.91 -1.99 7.19 7.86 9.63 14.82 -1.65 5.85

Barclays US Agg Bond Index -0.10 5.97 -2.02 4.21 7.84 6.54 5.93 5.24 6.97

Difference 0.00 -0.06 0.03 2.98 0.02 3.09 8.89 -6.89 -1.12

IM U.S. Broad Market Core Fixed Income (SA+CF) Median 0.09 6.16 -1.56 5.78 7.84 7.22 9.82 3.04 6.86

Rank 80 71 73 22 48 8 15 70 80

Western Asset Mgmt Co 87,232,633 3.92 0.30 7.47 -0.64 8.29 7.98 11.10 16.90 -6.88 4.22


Difference 0.40 1.50 1.38 4.08 0.14 4.56 10.97 -12.12 -2.75


Rank 28 7 13 7 37 3 9 91 95

Aberdeen Total Return Bond 169,149,419 7.60 -0.43 6.06 -2.32 6.62 8.19 N/A N/A N/A N/A


Difference -0.33 0.09 -0.30 2.41 0.35 N/A N/A N/A N/A


Rank 99 59 91 31 25 N/A N/A N/A N/A

PIMCO Total Return 149,602,466 6.72 0.05 4.94 -2.38 7.21 7.46 N/A N/A N/A N/A


Difference 0.15 -1.03 -0.36 3.00 -0.38 N/A N/A N/A N/A


Rank 61 95 94 22 66 N/A N/A N/A N/A


Page 19


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Emerging Markets Debt Composite 103,301,123 4.64 2.37 6.67 N/A N/A N/A N/A N/A N/A N/A

JPM EMBI Gbl Dvf'd TR Index 1.67 7.43 -5.25 17.44 7.35 12.24 29.82 -12.03 6.16


IM Emerging Markets Debt (SA+CF) Median 0.90 1.26 -5.97 18.97 2.95 15.17 32.54 -14.94 7.60


MFS Emerging Markets Debt 103,301,123 4.64 2.37 6.67 N/A N/A N/A N/A N/A N/A N/A



IM Emerging Markets Debt (SA+CF) Median 0.90 1.26 -5.97 18.97 2.95 15.17 32.54 -14.94 7.60


Real Return Composite 166,073,362 7.47 0.31 1.67 -6.67 11.05 1.56 3.78 2.52 -4.53 N/A

Consumer Price Index + 4% (Lng-Trm) 3.64 4.79 5.56 5.81 7.08 5.56 6.83 4.10 8.24

Difference -3.33 -3.12 -12.23 5.24 -5.52 -1.78 -4.31 -8.63 N/A

PIMCO:All Asset;Inst (PAAIX) 166,073,362 7.47 0.31 1.68 N/A N/A N/A N/A N/A N/A N/A

All Asset Custom Index 0.84 4.03 6.10 8.92 3.48 8.73 18.68 -13.26 7.76

Difference -0.53 -2.35 N/A N/A N/A N/A N/A N/A N/A


Page 20


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Real Estate Composite 281,459,395 12.65 7.14 11.67 15.44 11.74 22.60 13.66 -29.81 -5.75 17.52

NCREIF ODCE Index (Gross) (AWA) 7.34 12.50 13.94 10.94 15.99 16.36 -29.76 -10.01 15.97

Difference -0.20 -0.83 1.50 0.80 6.61 -2.70 -0.05 4.26 1.55

Core Real Estate Composite 182,079,055 8.18 7.85 13.25 16.80 12.68 16.94 15.32 -29.75 N/A N/A


Difference 0.51 0.75 2.86 1.74 0.95 -1.04 0.01 N/A N/A

Morgan Stanley Real Estate 88,316,733 3.97 7.89 15.47 17.58 13.14 17.74 16.28 -32.52 -3.62 16.33


Difference 0.55 2.97 3.64 2.20 1.75 -0.08 -2.76 6.39 0.36

JP Morgan Real Estate 93,762,322 4.21 7.81 11.14 15.90 12.12 15.96 14.13 -26.55 -8.09 N/A


Difference 0.47 -1.36 1.96 1.18 -0.03 -2.23 3.21 1.92 N/A

Non-Core Real Estate Composite 99,380,341 4.47 5.73 8.95 12.92 9.64 42.57 6.86 N/A N/A N/A

Wrightwood Capital High Yield Partners II LP 1,378,912 0.06 7.51 15.97 18.22 -4.94 37.25 3.21 N/A N/A N/A

TA Associates Realty Fund IX 7,599,387 0.34 6.52 15.52 6.63 5.78 20.07 N/A N/A N/A N/A

Real Estate Capital Asia Partners II TE LP 675,945 0.03 -59.92 9.81 44.47 2.57 5.90 54.30 N/A N/A N/A

Real Estate Capital Asia Partners III TE LP 19,496,891 0.88 9.48 7.90 32.46 N/A N/A N/A N/A N/A N/A

Real Estate Capital Asia Partners IV TE LP 3,232,508 0.15 N/A N/A N/A N/A N/A N/A N/A N/A N/A

JDM Partners Opportunity Fund I 25,983,853 1.17 3.40 -1.59 -0.95 11.90 71.07 N/A N/A N/A N/A

Wheelock Street Partners 15,393,887 0.69 19.84 29.80 20.25 N/A N/A N/A N/A N/A N/A

Wheelock Street Partners II 5,638,452 0.25 29.84 N/A N/A N/A N/A N/A N/A N/A N/A

Northwood Series IV 13,040,055 0.59 3.78 N/A N/A N/A N/A N/A N/A N/A N/A

Northwood Series V 6,940,450 0.31 N/A N/A N/A N/A N/A N/A N/A N/A N/A


Page 21


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Private Equity Composite 7,950,000 0.36 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Neuberger Berman Sonoran 7,950,000 0.36 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Absolute Return Composite 259,382,626 11.66 2.79 3.76 N/A N/A N/A N/A N/A N/A N/A

ARS Custom Benchmark 2.44 3.06 8.96 4.79 -5.72 5.70 11.47 -21.37 10.25

Difference 0.35 0.70 N/A N/A N/A N/A N/A N/A N/A

PAAMCO Newport Phoenix 135,955,898 6.11 3.01 3.56 N/A N/A N/A N/A N/A N/A N/A

HFRI FOF Comp Index 2.71 3.37 8.96 4.79 -5.72 5.70 11.47 -21.37 10.25


Carlson Double Black Diamond 61,109,162 2.75 2.60 N/A N/A N/A N/A N/A N/A N/A N/A

HFN Multi-Strat Index (Net) 2.15 3.13 9.61 5.01 -4.55 7.86 15.45 -16.12 9.34


Fir Tree International Value 62,317,566 2.80 2.47 N/A N/A N/A N/A N/A N/A N/A N/A



Cash Equivalent Composite 38,585,958 1.73 0.45 1.86 2.81 0.78 5.73 1.05 0.44 -5.85 2.58

BofA ML 3 Mo US T-Bill Index 0.01 0.04 0.07 0.11 0.10 0.13 0.21 2.06 5.00

Difference 0.44 1.82 2.74 0.67 5.63 0.92 0.23 -7.91 -2.42










Page 22

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate


Target Allocation Benchmark 0.67 3.19 3.93 3.93 9.87 10.19 5.36 8.73

Difference 0.11 -0.27 -1.74 -1.74 -0.50 -0.71 -0.35 -1.01


Actual Allocation Benchmark 0.58 3.01 3.38 3.38 9.69 9.78 5.44 N/A

Difference 0.20 -0.09 -1.19 -1.19 -0.32 -0.30 -0.43 N/A

Domestic Equity Composite 531,449,645 23.89 1.33 3.05 6.15 6.15 17.81 16.74 7.88 7.64 03/01/2005

Russell 3000 Index 0.14 1.94 7.29 7.29 17.73 17.53 8.15 7.93

Difference 1.19 1.11 -1.14 -1.14 0.08 -0.79 -0.27 -0.29

Robeco LCV 130,054,980 5.85 0.44 0.31 6.03 6.03 N/A N/A N/A 14.76 05/01/2013

Russell 1000 Val Index 0.11 -0.61 4.13 4.13 17.34 16.50 7.05 13.30


SSgA FTSE RAFI US Low Vol 122,847,731 5.52 -1.66 -2.41 N/A N/A N/A N/A N/A -2.41 01/01/2015

FTSE RAFI USD Lo Vol Index -1.67 -2.43 2.94 2.94 4.15 4.94 4.87 -2.43


Artisan Global Opportunities 123,668,741 5.56 4.71 9.97 N/A N/A N/A N/A N/A 8.14 12/01/2014



The Boston Company MC Opportunistic Value 45,423,762 2.04 0.59 1.77 4.80 4.80 21.14 18.72 11.02 11.45 05/01/2002

Russell Mid Cap Index -1.54 2.35 6.63 6.63 19.26 18.23 9.40 10.03

Difference 2.13 -0.58 -1.83 -1.83 1.88 0.49 1.62 1.42

Cramer Rosenthal McGlynn SCV 54,006,624 2.43 0.54 4.20 5.93 5.93 17.00 15.54 N/A 8.17 02/01/2008

Russell 2000 Val Index -1.20 0.76 0.78 0.78 15.50 14.81 6.87 7.87

Difference 1.74 3.44 5.15 5.15 1.50 0.73 N/A 0.30

Eagle Asset Mgmt SCG 55,447,807 2.49 4.36 7.94 11.02 11.02 19.21 18.56 11.38 11.38 07/01/2005

Russell 2000 Grth Index 1.98 8.74 12.34 12.34 20.11 19.32 9.86 9.86

Difference 2.38 -0.80 -1.32 -1.32 -0.90 -0.76 1.52 1.52

City of Phoenix Employees' Retirement SystemAsset Allocation & Performance (Net of Fees)

As of June 30, 2015

Performance shown is net of fees. Manager inception dates shown represent the first full month of performance following initial funding. Indices show N/A for since inception returns when the fund contains more history than the corresponding benchmark. RVK endorses GIPS and calculates performance for composites and investment managers using different methodologies. For additional information, please see the Glossary.

Page 23


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

International Equity Composite 430,477,063 19.35 1.57 4.79 -2.93 -2.93 10.64 9.61 5.00 4.62 03/01/2005

Int'l Equity Custom Benchmark 1.19 4.88 -4.57 -4.57 10.26 8.43 4.83 4.34

Difference 0.38 -0.09 1.64 1.64 0.38 1.18 0.17 0.28

GMO Global Equity Allocation 151,558,668 6.81 0.47 3.01 -4.53 -4.53 N/A N/A N/A 5.33 10/01/2013


Difference -0.05 0.04 -5.76 -5.76 N/A N/A N/A -3.42

SSgA MSCI ACW Ex US Index 67,037,216 3.01 0.59 4.15 -5.13 -5.13 9.59 N/A N/A 3.45 08/01/2011


Difference -0.13 -0.20 -0.28 -0.28 -0.33 N/A N/A -0.31

Baillie Gifford IE Growth 157,095,855 7.06 2.15 6.19 -0.23 -0.23 11.04 N/A N/A 5.54 07/01/2011


Difference 1.43 1.84 4.62 4.62 1.12 N/A N/A 2.21

Mondrian IE SC 54,785,324 2.46 4.11 6.48 -2.52 -2.52 11.23 N/A N/A 5.81 07/01/2011

MSCI Wrld Ex US Sm Cap Index (Gross) 4.32 8.62 -3.61 -3.61 14.00 11.50 6.68 5.81

Difference -0.21 -2.14 1.09 1.09 -2.77 N/A N/A 0.00


Page 24


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

Domestic Fixed Income Composite 405,984,518 18.25 -1.84 -0.22 1.05 1.05 1.96 3.84 4.84 4.91 03/01/2005


Difference -0.16 -0.12 -0.81 -0.81 0.13 0.49 0.40 0.37

Western Asset Mgmt Co 87,232,633 3.92 -1.73 0.15 1.59 1.59 3.32 4.81 4.89 4.90 02/01/2005


Difference -0.05 0.25 -0.27 -0.27 1.49 1.46 0.45 0.46

Aberdeen Total Return Bond 169,149,419 7.60 -2.01 -0.50 0.84 0.84 1.80 3.68 N/A 3.68 07/01/2010


Difference -0.33 -0.40 -1.02 -1.02 -0.03 0.33 N/A 0.33

PIMCO Total Return 149,602,466 6.72 -1.70 -0.10 0.96 0.96 1.42 3.49 N/A 3.49 07/01/2010


Difference -0.02 0.00 -0.90 -0.90 -0.41 0.14 N/A 0.14

Emerging Markets Debt Composite 103,301,123 4.64 -0.42 2.25 0.97 0.97 N/A N/A N/A 1.65 02/01/2013


Difference -0.08 0.58 0.46 0.46 N/A N/A N/A -0.34

MFS Emerging Markets Debt 103,301,123 4.64 -0.42 2.25 0.97 0.97 N/A N/A N/A 1.65 02/01/2013


Difference -0.08 0.58 0.46 0.46 N/A N/A N/A -0.34

Real Return Composite 166,073,362 7.47 -0.24 -0.13 -5.81 -5.81 0.39 1.05 N/A 0.68 07/01/2007

Consumer Price Index + 4% (Lng-Trm) 2.06 3.64 4.13 4.13 5.37 5.90 6.15 5.78

Difference -2.30 -3.77 -9.94 -9.94 -4.98 -4.85 N/A -5.10

PIMCO:All Asset;Inst (PAAIX) 166,073,362 7.47 -0.24 -0.13 -5.82 -5.82 N/A N/A N/A 0.47 12/01/2013

All Asset Custom Index -0.23 0.84 0.46 0.46 5.16 6.39 5.42 3.31

Difference -0.01 -0.97 -6.28 -6.28 N/A N/A N/A -2.84


Page 25


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

Real Estate Composite 281,459,395 12.65 3.81 6.78 12.41 12.41 12.14 14.75 N/A 5.75 12/01/2006

NCREIF ODCE Index (Net) (AWA) 3.58 6.85 13.39 13.39 12.07 13.33 5.86 4.34

Difference 0.23 -0.07 -0.98 -0.98 0.07 1.42 N/A 1.41

Core Real Estate Composite 182,079,055 8.18 3.82 7.43 14.23 14.23 13.80 14.42 N/A 5.57 01/01/2009


Difference 0.24 0.58 0.84 0.84 1.73 1.09 N/A 0.71

Morgan Stanley Real Estate 88,316,733 3.97 4.21 7.31 16.02 16.02 14.68 15.30 N/A 5.78 12/01/2006


Difference 0.63 0.46 2.63 2.63 2.61 1.97 N/A 1.44

JP Morgan Real Estate 93,762,322 4.21 3.45 7.55 12.54 12.54 12.92 13.45 N/A 4.55 05/01/2007


Difference -0.13 0.70 -0.85 -0.85 0.85 0.12 N/A 0.88

Non-Core Real Estate Composite 99,380,341 4.47 3.80 5.73 9.50 9.50 9.05 16.61 N/A 8.42 02/01/2009

Wrightwood Capital High Yield Partners II LP 1,378,912 0.06 4.44 7.51 15.41 15.41 17.11 14.76 N/A 5.63 02/01/2009

TA Associates Realty Fund IX 7,599,387 0.34 3.21 6.52 15.93 15.93 11.11 9.84 N/A 9.51 05/01/2010

Real Estate Capital Asia Partners II TE LP 675,945 0.03 -0.56 -59.92 -56.77 -56.77 -12.27 -0.43 N/A -0.09 10/01/2009

Real Estate Capital Asia Partners III TE LP 19,496,891 0.88 9.48 9.48 6.68 6.68 10.35 N/A N/A 20.82 03/01/2012

Real Estate Capital Asia Partners IV TE LP 3,232,508 0.15 -8.68 N/A N/A N/A N/A N/A N/A -8.68 02/01/2015

JDM Partners Opportunity Fund I 25,983,853 1.17 3.40 3.40 2.79 2.79 -0.07 14.05 N/A 12.71 02/01/2010

Wheelock Street Partners 15,393,887 0.69 7.39 19.84 38.11 38.11 18.37 N/A N/A 17.83 06/01/2012

Wheelock Street Partners II 5,638,452 0.25 23.30 29.84 N/A N/A N/A N/A N/A 17.87 09/01/2014

Northwood Series IV 13,040,055 0.59 -2.44 3.78 4.44 4.44 N/A N/A N/A 3.33 02/01/2014

Northwood Series V 6,940,450 0.31 -4.63 N/A N/A N/A N/A N/A N/A -4.63 02/01/2015


Page 26


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

SinceIncep.

InceptionDate

Private Equity Composite 7,950,000 0.36 0.00 N/A N/A N/A N/A N/A N/A 0.00 04/01/2015

Neuberger Berman Sonoran 7,950,000 0.36 0.00 N/A N/A N/A N/A N/A N/A 0.00 04/01/2015

Absolute Return Composite 259,382,626 11.66 0.40 2.79 0.87 0.87 N/A N/A N/A 4.39 01/01/2014

ARS Custom Benchmark -0.11 2.44 3.39 3.39 6.08 3.99 3.16 3.68

Difference 0.51 0.35 -2.52 -2.52 N/A N/A N/A 0.71

PAAMCO Newport Phoenix 135,955,898 6.11 -0.20 3.01 0.92 0.92 N/A N/A N/A 4.40 01/01/2014

HFRI FOF Comp Index 0.20 2.71 3.97 3.97 6.28 4.10 3.21 4.07

Difference -0.40 0.30 -3.05 -3.05 N/A N/A N/A 0.33

Carlson Double Black Diamond 61,109,162 2.75 1.63 2.60 N/A N/A N/A N/A N/A 1.85 08/01/2014


Difference 2.09 0.45 N/A N/A N/A N/A N/A -1.01

Fir Tree International Value 62,317,566 2.80 0.50 2.47 N/A N/A N/A N/A N/A 3.86 11/01/2014



Cash Equivalent Composite 38,585,958 1.73 0.22 0.45 1.60 1.60 1.91 2.48 1.58 1.66 03/01/2005

BofA ML 3 Mo US T-Bill Index 0.01 0.01 0.02 0.02 0.06 0.08 1.42 1.46

Difference 0.21 0.44 1.58 1.58 1.85 2.40 0.16 0.20










Page 27

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007


Target Allocation Benchmark 3.19 6.18 13.97 11.54 1.68 12.75 12.47 -26.52 7.92

Difference -0.27 -1.87 -0.49 1.05 -1.44 -0.50 0.71 0.26 -0.44


Actual Allocation Benchmark 3.01 5.83 14.20 11.00 1.15 11.66 13.63 -24.73 7.01

Difference -0.09 -1.52 -0.72 1.59 -0.91 0.59 -0.45 -1.53 0.47

Domestic Equity Composite 531,449,645 23.89 3.05 8.28 35.07 16.47 -3.89 22.36 31.53 -39.05 6.46

Russell 3000 Index 1.94 12.55 33.55 16.42 1.03 16.93 28.34 -37.31 5.14

Difference 1.11 -4.27 1.52 0.05 -4.92 5.43 3.19 -1.74 1.32

Robeco LCV 130,054,980 5.85 0.31 11.38 N/A N/A N/A N/A N/A N/A N/A

Russell 1000 Val Index -0.61 13.45 32.53 17.50 0.39 15.51 19.69 -36.85 -0.17


SSgA FTSE RAFI US Low Vol 122,847,731 5.52 -2.41 N/A N/A N/A N/A N/A N/A N/A N/A

FTSE RAFI USD Lo Vol Index -2.43 15.07 -1.85 4.76 10.51 2.71 8.92 3.33 4.51


Artisan Global Opportunities 123,668,741 5.56 9.97 N/A N/A N/A N/A N/A N/A N/A N/A



The Boston Company MC Opportunistic Value 45,423,762 2.04 1.77 9.66 40.96 19.29 -4.55 25.01 60.56 -38.38 5.77

Russell Mid Cap Index 2.35 13.22 34.76 17.28 -1.55 25.47 40.48 -41.46 5.60

Difference -0.58 -3.56 6.20 2.01 -3.00 -0.46 20.08 3.08 0.17

Cramer Rosenthal McGlynn SCV 54,006,624 2.43 4.20 3.06 38.15 16.48 -13.50 28.65 28.82 N/A N/A

Russell 2000 Val Index 0.76 4.22 34.52 18.05 -5.50 24.50 20.58 -28.92 -9.78

Difference 3.44 -1.16 3.63 -1.57 -8.00 4.15 8.24 N/A N/A

Eagle Asset Mgmt SCG 55,447,807 2.49 7.94 5.36 35.54 17.64 -2.12 33.26 37.32 -36.23 12.10

Russell 2000 Grth Index 8.74 5.60 43.30 14.59 -2.91 29.09 34.47 -38.54 7.05

Difference -0.80 -0.24 -7.76 3.05 0.79 4.17 2.85 2.31 5.05


As of June 30, 2015

Performance shown is net of fees. Indices show N/A for since inception returns when the fund contains more history than the corresponding benchmark. RVK endorses GIPS and calculates performance for composites and investment managers using different methodologies. For additional information, please see the Glossary.

Page 28


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

International Equity Composite 430,477,063 19.35 4.79 -2.76 16.26 19.11 -11.69 12.78 24.61 -42.06 11.32

Int'l Equity Custom Benchmark 4.88 -3.47 16.30 17.58 -12.92 8.21 32.46 -43.06 11.63

Difference -0.09 0.71 -0.04 1.53 1.23 4.57 -7.85 1.00 -0.31

GMO Global Equity Allocation 151,558,668 6.81 3.01 -0.88 N/A N/A N/A N/A N/A N/A N/A



SSgA MSCI ACW Ex US Index 67,037,216 3.01 4.15 -3.68 15.42 16.95 N/A N/A N/A N/A N/A


Difference -0.20 -0.24 -0.36 -0.44 N/A N/A N/A N/A N/A

Baillie Gifford IE Growth 157,095,855 7.06 6.19 -2.89 15.37 22.54 N/A N/A N/A N/A N/A


Difference 1.84 0.55 -0.41 5.15 N/A N/A N/A N/A N/A

Mondrian IE SC 54,785,324 2.46 6.48 -4.75 17.44 24.64 N/A N/A N/A N/A N/A

MSCI Wrld Ex US Sm Cap Index (Gross) 8.62 -4.99 25.99 17.93 -15.50 24.90 51.42 -47.79 3.64

Difference -2.14 0.24 -8.55 6.71 N/A N/A N/A N/A N/A


Page 29


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Domestic Fixed Income Composite 405,984,518 18.25 -0.22 5.57 -2.26 6.90 7.52 9.42 14.57 -1.87 5.66


Difference -0.12 -0.40 -0.24 2.69 -0.32 2.88 8.64 -7.11 -1.31

Western Asset Mgmt Co 87,232,633 3.92 0.15 7.17 -0.96 8.05 7.66 10.78 16.62 -7.10 3.98


Difference 0.25 1.20 1.06 3.84 -0.18 4.24 10.69 -12.34 -2.99

Aberdeen Total Return Bond 169,149,419 7.60 -0.50 5.70 -2.54 6.33 7.82 N/A N/A N/A N/A


Difference -0.40 -0.27 -0.52 2.12 -0.02 N/A N/A N/A N/A

PIMCO Total Return 149,602,466 6.72 -0.10 4.62 -2.70 6.90 7.15 N/A N/A N/A N/A


Difference 0.00 -1.35 -0.68 2.69 -0.69 N/A N/A N/A N/A

Emerging Markets Debt Composite 103,301,123 4.64 2.25 6.02 N/A N/A N/A N/A N/A N/A N/A



MFS Emerging Markets Debt 103,301,123 4.64 2.25 6.02 N/A N/A N/A N/A N/A N/A N/A



Real Return Composite 166,073,362 7.47 -0.13 0.78 -6.88 10.86 1.49 3.78 1.75 -5.15 N/A

Consumer Price Index + 4% (Lng-Trm) 3.64 4.79 5.56 5.81 7.08 5.56 6.83 4.10 8.24

Difference -3.77 -4.01 -12.44 5.05 -5.59 -1.78 -5.08 -9.25 N/A

PIMCO:All Asset;Inst (PAAIX) 166,073,362 7.47 -0.13 0.80 N/A N/A N/A N/A N/A N/A N/A

All Asset Custom Index 0.84 4.03 6.10 8.92 3.48 8.73 18.68 -13.26 7.76

Difference -0.97 -3.23 N/A N/A N/A N/A N/A N/A N/A


Page 30


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Real Estate Composite 281,459,395 12.65 6.78 10.88 14.61 10.86 21.60 12.71 -30.54 -6.72 16.61

NCREIF ODCE Index (Net) (AWA) 6.85 11.46 12.90 9.79 14.96 15.26 -30.40 -10.70 14.84

Difference -0.07 -0.58 1.71 1.07 6.64 -2.55 -0.14 3.98 1.77

Core Real Estate Composite 182,079,055 8.18 7.43 12.04 15.54 11.38 15.66 14.16 -30.48 N/A N/A


Difference 0.58 0.58 2.64 1.59 0.70 -1.10 -0.08 N/A N/A

Morgan Stanley Real Estate 88,316,733 3.97 7.31 14.15 16.22 11.68 16.34 15.15 -33.18 -4.71 15.13


Difference 0.46 2.69 3.32 1.89 1.38 -0.11 -2.78 5.99 0.29

JP Morgan Real Estate 93,762,322 4.21 7.55 10.05 14.77 11.03 14.83 12.95 -27.38 -8.93 N/A


Difference 0.70 -1.41 1.87 1.24 -0.13 -2.31 3.02 1.77 N/A

Non-Core Real Estate Composite 99,380,341 4.47 5.73 8.95 12.92 9.64 42.57 6.86 N/A N/A N/A

Wrightwood Capital High Yield Partners II LP 1,378,912 0.06 7.51 15.97 18.22 -4.94 37.25 3.21 N/A N/A N/A

TA Associates Realty Fund IX 7,599,387 0.34 6.52 15.52 6.63 5.78 20.07 N/A N/A N/A N/A

Real Estate Capital Asia Partners II TE LP 675,945 0.03 -59.92 9.81 44.47 2.57 5.90 54.30 N/A N/A N/A

Real Estate Capital Asia Partners III TE LP 19,496,891 0.88 9.48 7.90 32.46 N/A N/A N/A N/A N/A N/A

Real Estate Capital Asia Partners IV TE LP 3,232,508 0.15 N/A N/A N/A N/A N/A N/A N/A N/A N/A

JDM Partners Opportunity Fund I 25,983,853 1.17 3.40 -1.59 -0.95 11.90 71.07 N/A N/A N/A N/A

Wheelock Street Partners 15,393,887 0.69 19.84 29.80 20.25 N/A N/A N/A N/A N/A N/A

Wheelock Street Partners II 5,638,452 0.25 29.84 N/A N/A N/A N/A N/A N/A N/A N/A

Northwood Series IV 13,040,055 0.59 3.78 N/A N/A N/A N/A N/A N/A N/A N/A

Northwood Series V 6,940,450 0.31 N/A N/A N/A N/A N/A N/A N/A N/A N/A


Page 31


As of June 30, 2015

Allocation

MarketValue ($)

%

Performance (%)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Private Equity Composite 7,950,000 0.36 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Neuberger Berman Sonoran 7,950,000 0.36 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Absolute Return Composite 259,382,626 11.66 2.79 3.76 N/A N/A N/A N/A N/A N/A N/A

ARS Custom Benchmark 2.44 3.06 8.96 4.79 -5.72 5.70 11.47 -21.37 10.25


PAAMCO Newport Phoenix 135,955,898 6.11 3.01 3.56 N/A N/A N/A N/A N/A N/A N/A

HFRI FOF Comp Index 2.71 3.37 8.96 4.79 -5.72 5.70 11.47 -21.37 10.25


Carlson Double Black Diamond 61,109,162 2.75 2.60 N/A N/A N/A N/A N/A N/A N/A N/A



Fir Tree International Value 62,317,566 2.80 2.47 N/A N/A N/A N/A N/A N/A N/A N/A



Cash Equivalent Composite 38,585,958 1.73 0.45 1.86 2.81 0.78 5.73 1.05 0.44 -5.85 2.58

BofA ML 3 Mo US T-Bill Index 0.01 0.04 0.07 0.11 0.10 0.13 0.21 2.06 5.00

Difference 0.44 1.82 2.74 0.67 5.63 0.92 0.23 -7.91 -2.42










Page 32

QTD YTDJul-2014

ToJun-2015

1Year

3Years

5Years

10Years

2014 2013 2012

Total Fund Composite 0.89 (7) 3.14 (10) 2.64 (56) 2.64 (56) 9.82 (56) 9.92 (70) 5.43 (96) 4.78 (87) 13.92 (54) 13.04 (58)

Target Allocation Benchmark 0.67 (14) 3.19 (8) 3.93 (25) 3.93 (25) 9.87 (54) 10.19 (64) 5.36 (96) 6.18 (66) 13.97 (53) 11.54 (86)

Median -0.29 2.21 2.83 2.83 10.25 10.70 6.87 6.90 14.62 13.39

Population 135 134 133 133 121 115 104 162 163 160

City of Phoenix Employees' Retirement SystemAll Pension Plans ($1B to $5B) (Custom PG)Plan Sponsor Peer Group Analysis

As of June 30, 2015

Performance shown is gross of fees. Parentheses contain percentile ranks.

Page 33

-44.00

-36.00

-28.00

-20.00

-12.00

-4.00

4.00

12.00

20.00

28.00

36.00

44.00

Re

turn

(%

)

YTD 2014 2013 2012 2011 2010 2009 2008 2007

Total Fund Composite 3.14 (10) 4.78 (87) 13.92 (54) 13.04 (58) 0.62 (71) 12.65 (74) 13.76 (89) -25.88 (55) 7.85 (66)

Target Allocation Benchmark 3.19 (8) 6.18 (66) 13.97 (53) 11.54 (86) 1.68 (52) 12.75 (73) 12.47 (92) -26.52 (64) 7.92 (65)

Median 2.21 6.90 14.62 13.39 1.87 13.88 19.97 -25.76 8.39

Population 134 162 163 160 151 154 142 121 141

City of Phoenix Employees' Retirement SystemAll Pension Plans ($1B to $5B) (Custom PG)Plan Sponsor Peer Group Analysis

As of June 30, 2015

Performance shown is gross of fees. Parentheses contain percentile ranks.

Page 34

Plan Sponsor Scattergram - 3 Years Plan Sponsor Scattergram - 5 Years

Plan Sponsor Scattergram - 7 Years Plan Sponsor Scattergram - 10 Years

ReturnStandardDeviation

Total Fund Composite 9.82 4.95

Target Allocation Benchmark 9.87 4.21

Median 10.25 5.41




Median 10.70 7.30




Median 6.63 10.62




Median 6.87 9.65

City of Phoenix Employees' Retirement SystemAll Pension Plans ($1B to $5B) (Custom PG)

As of June 30, 2015

Performance shown is gross of fees. Calculation is based on monthly periodicity.

Page 35

Plan Sponsor Scattergram - 5 Years Up/Down Markets - 5 Years

Plan Sponsor Peer Group Analysis - Multi Statistics (Beta vs. S&P 500)



Actual Allocation Benchmark 9.78 6.64

Median 10.70 7.30

5Years

5Years

5Years

5Years

5Years

Total Fund Composite 7.43 (48) 1.30 (72) 9.69 (69) 4.06 (44) 0.59 (46)

Actual Allocation Benchmark 6.64 (70) 1.43 (48) 9.50 (73) 3.39 (68) 0.53 (62)

Median 7.30 1.42 10.36 3.83 0.57

Population 115 115 115 115 115

City of Phoenix Employees' Retirement SystemTotal Fund Composite vs. All Pension Plans ($1B to $5B) (Custom PG)

As of June 30, 2015

Performance shown is gross of fees. Calculation is based on monthly periodicity. Parentheses contain percentile ranks.

Page 36

Top Ten Equity Holdings

PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

JPMorgan Chase & Co 4.19 2.42 1.77 12.60

Wells Fargo & Co 3.72 2.52 1.20 4.09

Berkshire Hathaway Inc 3.62 2.28 1.34 -5.69

Capital One Financial Corp. 3.47 0.46 3.01 12.15

Pfizer Inc 2.89 1.99 0.90 -2.82

Citigroup Inc 2.72 1.61 1.11 7.32

Johnson & Johnson 2.67 2.26 0.41 -2.41

Apple Inc 2.37 0.00 2.37 1.22

Occidental Petroleum Corp 2.30 0.57 1.73 7.57

Cisco Systems Inc 2.22 1.34 0.88 -0.24

% of Portfolio 30.17 15.45

Portfolio Characteristics

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 117,252 107,214

Median Mkt. Cap ($M) 28,807 8,159

Price/Earnings Ratio 16.16 16.99

Price/Book Ratio 2.29 2.05

5 Yr. EPS Growth Rate (%) 12.79 7.46

Current Yield (%) 1.92 2.47

Beta N/A 1.00

Number of Securities 90 684

Distribution of Market Capitalization (%)

City of Phoenix Employees' Retirement SystemRobeco LCV vs. Russell 1000 Val IndexPortfolio Characteristics

As of June 30, 2015

Beta calculation requires three years of monthly performance history.

Page 37

Allocation Performance

Total Attribution

City of Phoenix Employees' Retirement SystemRobeco LCV vs. Russell 1000 Val IndexBuy and Hold Sector Attribution Graph

1 Quarter Ending June 30, 2015

Page 38


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

AT&T Inc 5.23 5.23 0.00 10.36

Exxon Mobil Corp 4.61 4.61 0.00 -1.29

Chevron Corp 4.10 4.10 0.00 -7.20

Verizon Communications Inc 3.16 3.16 0.00 -3.08

Johnson & Johnson 2.96 2.96 0.00 -2.41

Microsoft Corp 2.90 2.90 0.00 9.30

Procter & Gamble Co (The) 2.74 2.74 0.00 -3.73

Wal-Mart Stores Inc 2.45 2.45 0.00 -13.22

International Business Machines Corp 2.19 2.19 0.00 2.12

Merck & Co Inc. 2.00 2.01 -0.01 -0.20



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 124,233 124,356

Median Mkt. Cap ($M) 12,973 12,973





Beta N/A 1.00



City of Phoenix Employees' Retirement SystemSSgA FTSE RAFI US Low Vol vs. FTSE RAFI USD Lo Vol IndexPortfolio Characteristics

As of June 30, 2015


Page 39


Total Attribution

City of Phoenix Employees' Retirement SystemSSgA FTSE RAFI US Low Vol vs. FTSE RAFI USD Lo Vol IndexBuy and Hold Sector Attribution Graph


Page 40


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

IHS Inc 5.42 0.02 5.40 13.07

Regeneron Pharmaceuticals Inc 4.66 0.10 4.56 12.99

Visa Inc 3.98 0.35 3.63 2.84

Facebook Inc 3.76 0.46 3.30 4.32

Tencent Holdings LTD 3.42 0.27 3.15 5.33

Abbott Laboratories 3.32 0.20 3.12 6.48

Illumina Inc 3.30 0.08 3.22 17.63

Apple Inc 3.29 1.94 1.35 1.22

Hexagon AB 3.28 0.02 3.26 3.03

Google Inc 3.05 0.41 2.64 -2.64



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 88,904 91,678

Median Mkt. Cap ($M) 19,769 9,115





Beta N/A 1.00

Number of Securities 46 2,483


City of Phoenix Employees' Retirement SystemArtisan Global Opportunities vs. MSCI ACW Index (Gross)Portfolio Characteristics

As of June 30, 2015


Page 41


Total Attribution

City of Phoenix Employees' Retirement SystemArtisan Global Opportunities vs. MSCI ACW Index (Gross)Buy and Hold Sector Attribution Graph


Page 42


Total Attribution

City of Phoenix Employees' Retirement SystemArtisan Global Opportunities vs. MSCI ACW Index (Gross)Buy and Hold Region Attribution Graph


Page 43

Peer Group Scattergram - 10 Years Up/Down Markets - 10 Years

Peer Group Analysis - Multi Statistics


The Boston Company MC Opportunistic Value 11.87 20.34

Russell Mid Cap Index 9.40 19.05

Median 10.20 18.73

10Years

10Years

10Years

10Years

10Years

10Years

The Boston Company MC Opportunistic Value 0.59 (30) 5.26 (57) 0.48 (9) 12.62 (36) 109.80 (11) 95.67 (41)

Russell Mid Cap Index 0.50 (79) 0.00 (100) N/A 12.61 (37) 100.00 (54) 100.00 (22)

Median 0.55 5.57 0.15 12.18 100.25 93.83

Population 149 149 149 149 149 149

City of Phoenix Employees' Retirement SystemThe Boston Company MC Opportunistic Value vs. IM U.S. Mid Cap Equity (SA+CF)

As of June 30, 2015

Performance shown is gross of fees. Calculation is based on quarterly periodicity. Parentheses contain percentile ranks.

Page 44


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Leucadia National Corp 3.55 0.12 3.43 9.21

Realogy Holdings Corp 3.42 0.11 3.31 2.73

TD AMERITRADE Holding Corp 3.32 0.15 3.17 -0.78

E*TRADE Financial Corporation 3.31 0.14 3.17 4.88

Newmont Mining Corp 3.24 0.18 3.06 7.71

Ingersoll-Rand Plc 3.06 0.28 2.78 -0.55

Mednax Inc 3.05 0.11 2.94 2.21

SLM Corp 3.03 0.07 2.96 6.36

IntercontinentalExchange Inc 2.75 0.39 2.36 -3.84

Valspar Corp (The) 2.74 0.10 2.64 -2.28



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 10,900 12,256

Median Mkt. Cap ($M) 8,627 6,524





Beta (5 Years, Monthly) 1.18 1.00



City of Phoenix Employees' Retirement SystemThe Boston Company MC Opportunistic Value vs. Russell Mid Cap IndexPortfolio Characteristics

As of June 30, 2015

Page 45


Total Attribution

City of Phoenix Employees' Retirement SystemThe Boston Company MC Opportunistic Value vs. Russell Mid Cap IndexBuy and Hold Sector Attribution Graph


Page 46




Cramer Rosenthal McGlynn SCV 10.31 22.05

Russell 2000 Val Index 9.31 22.68

Median 11.78 22.76

7Years

7Years

7Years

7Years

7Years

7Years

Cramer Rosenthal McGlynn SCV 0.56 (70) 6.31 (58) 0.12 (74) 14.63 (50) 97.06 (73) 88.55 (54)

Russell 2000 Val Index 0.51 (84) 0.00 (100) N/A 15.44 (32) 100.00 (63) 100.00 (16)

Median 0.61 6.60 0.36 14.59 103.21 88.90

Population 212 212 212 212 212 212

City of Phoenix Employees' Retirement SystemCramer Rosenthal McGlynn SCV vs. IM U.S. Small Cap Value Equity (SA+CF)

As of June 30, 2015


Page 47


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Regis Corp 3.25 0.07 3.18 -3.67

CONMED Corp 2.93 0.17 2.76 15.82

FTI Consulting Inc. 2.73 0.17 2.56 10.09

STERIS Corp 2.54 0.00 2.54 -7.98

Korn/Ferry International 2.27 0.09 2.18 6.08

Stifel Financial Corp. 2.25 0.42 1.83 3.57

MB Financial Inc 2.22 0.28 1.94 10.54

Kennedy-Wilson Holdings Inc 2.18 0.22 1.96 -5.48

Premier Inc 2.18 0.00 2.18 2.34

Hancock Holding Co 2.15 0.27 1.88 7.71



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 2,074 1,721

Median Mkt. Cap ($M) 1,667 706








City of Phoenix Employees' Retirement SystemCramer Rosenthal McGlynn SCV vs. Russell 2000 Val IndexPortfolio Characteristics

As of June 30, 2015

Page 48


Total Attribution

City of Phoenix Employees' Retirement SystemCramer Rosenthal McGlynn SCV vs. Russell 2000 Val IndexBuy and Hold Sector Attribution Graph


Page 49




Eagle Asset Mgmt SCG 12.01 20.70

Russell 2000 Grth Index 9.86 20.55

Median 10.58 21.14

10Years

10Years

10Years

10Years

10Years

10Years

Eagle Asset Mgmt SCG 0.59 (16) 4.53 (85) 0.45 (10) 13.05 (64) 103.47 (45) 88.84 (78)

Russell 2000 Grth Index 0.50 (59) 0.00 (100) N/A 13.25 (59) 100.00 (60) 100.00 (51)

Median 0.53 5.87 0.12 13.57 102.44 100.05

Population 152 152 152 152 152 152

City of Phoenix Employees' Retirement SystemEagle Asset Mgmt SCG vs. IM U.S. Small Cap Growth Equity (SA+CF)

As of June 30, 2015


Page 50


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Imperva Inc 2.44 0.19 2.25 58.55

Centene Corp 2.42 0.00 2.42 13.74

Martin Marietta Materials Inc. 2.33 0.00 2.33 1.49

Quaker Chemical Corp 2.15 0.09 2.06 4.10

JetBlue Airways Corp 1.83 0.00 1.83 7.84

Natus Medical Inc 1.66 0.15 1.51 7.83

Synovus Financial Corp. 1.62 0.00 1.62 10.39

Vail Resorts Inc. 1.60 0.42 1.18 6.19

Stifel Financial Corp. 1.58 0.00 1.58 3.57

Cavium Inc 1.57 0.40 1.17 -2.84



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 3,325 2,087









City of Phoenix Employees' Retirement SystemEagle Asset Mgmt SCG vs. Russell 2000 Grth IndexPortfolio Characteristics

As of June 30, 2015

Page 51


Total Attribution

City of Phoenix Employees' Retirement SystemEagle Asset Mgmt SCG vs. Russell 2000 Grth IndexBuy and Hold Sector Attribution Graph


Page 52


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Total SA 2.15 0.28 1.87 -0.90

BP PLC 1.76 0.32 1.44 3.40

Nissan Motor Co Ltd 1.64 0.07 1.57 2.09

Johnson & Johnson 1.58 0.72 0.86 -2.41

Astrazeneca PLC 1.43 0.21 1.22 -7.97

Microsoft Corp 1.42 0.91 0.51 9.30

Chevron Corp 1.42 0.48 0.94 -7.20

Apple Inc 1.41 1.94 -0.53 1.22

Amazon.com Inc 1.38 0.45 0.93 16.66

Procter & Gamble Co (The) 1.29 0.56 0.73 -3.73



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 89,357 91,678






Beta N/A 1.00



City of Phoenix Employees' Retirement SystemGMO Global Equity Allocation vs. MSCI ACW Index (Gross)Portfolio Characteristics

As of June 30, 2015


Page 53


Total Attribution

City of Phoenix Employees' Retirement SystemGMO Global Equity Allocation vs. MSCI ACW Index (Gross)Buy and Hold Sector Attribution Graph


Page 54


Total Attribution

City of Phoenix Employees' Retirement SystemGMO Global Equity Allocation vs. MSCI ACW Index (Gross)Buy and Hold Region Attribution Graph


Page 55




SSgA MSCI ACW Ex US Index 9.70 9.04

MSCI ACW Ex US Index (Gross) 9.92 9.03

Median 12.26 9.61

3Years

3Years

3Years

3Years

3Years

3Years

SSgA MSCI ACW Ex US Index 1.07 (68) 0.07 (100) -2.89 (100) 4.12 (54) 98.85 (66) 101.10 (30)

MSCI ACW Ex US Index (Gross) 1.10 (66) 0.00 (100) N/A 4.08 (56) 100.00 (65) 100.00 (31)

Median 1.28 4.81 0.54 4.22 107.78 78.98

Population 876 876 876 876 876 876

City of Phoenix Employees' Retirement SystemSSgA MSCI ACW Ex US Index vs. IM International Equity (SA+CF)

As of June 30, 2015


Page 56


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Nestle SA, Cham Und Vevey 1.25 1.28 -0.03 -1.56

Novartis AG 1.22 1.24 -0.02 -0.37

Roche Holding AG 1.06 1.08 -0.02 1.59

Toyota Motor Corp 0.99 1.00 -0.01 -4.10

HSBC Holdings PLC 0.94 0.94 0.00 6.32

Samsung Electronics Co Ltd 0.72 0.69 0.03 -12.79

BP PLC 0.66 0.66 0.00 3.40

Taiwan Semiconductor Mfg 0.64 0.61 0.03 0.82

Bayer AG 0.63 0.63 0.00 -5.29

Sanofi 0.63 0.64 -0.01 2.85



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 55,336 55,401







Number of Securities 1,890 1,843


City of Phoenix Employees' Retirement SystemSSgA MSCI ACW Ex US Index vs. MSCI ACW Ex US Index (Gross)Portfolio Characteristics

As of June 30, 2015

Page 57


Total Attribution

City of Phoenix Employees' Retirement SystemSSgA MSCI ACW Ex US Index vs. MSCI ACW Ex US Index (Gross)Buy and Hold Sector Attribution Graph


Page 58


Total Attribution

City of Phoenix Employees' Retirement SystemSSgA MSCI ACW Ex US Index vs. MSCI ACW Ex US Index (Gross)Buy and Hold Region Attribution Graph


Page 59




Baillie Gifford IE Growth 11.69 9.19

MSCI ACW Ex US Index (Gross) 9.92 9.03

Median 12.95 9.20

3Years

3Years

3Years

3Years

3Years

3Years

Baillie Gifford IE Growth 1.26 (75) 2.95 (76) 0.56 (67) 4.09 (35) 105.87 (60) 78.92 (29)

MSCI ACW Ex US Index (Gross) 1.10 (91) 0.00 (100) N/A 4.08 (35) 100.00 (84) 100.00 (10)

Median 1.40 4.07 0.76 3.58 110.47 68.38

Population 155 155 155 155 155 155

City of Phoenix Employees' Retirement SystemBaillie Gifford IE Growth vs. IM International Growth Equity (SA+CF)

As of June 30, 2015


Page 60


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Taiwan Semiconductor Mfg 3.26 0.61 2.65 0.82

Naspers Ltd 3.14 0.34 2.80 1.13

Nestle SA, Cham Und Vevey 2.58 1.28 1.30 -1.56

Samsung Electronics Co Ltd 2.30 0.69 1.61 -12.79

Hong Kong Exchanges and Clearing 2.26 0.21 2.05 45.05

Svenska Handelsbanken 2.20 0.12 2.08 -3.05

Ryanair Holdings PLC 1.94 0.01 1.93 6.86

Japan Exchange Group Inc 1.93 0.05 1.88 11.79

Arm Holdings PLC 1.91 0.13 1.78 -0.20

Atlas Copco AB 1.85 0.05 1.80 -14.67



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 41,524 55,401

Median Mkt. Cap ($M) 17,927 7,498








City of Phoenix Employees' Retirement SystemBaillie Gifford IE Growth vs. MSCI ACW Ex US Index (Gross)Portfolio Characteristics

As of June 30, 2015

Page 61


Total Attribution

City of Phoenix Employees' Retirement SystemBaillie Gifford IE Growth vs. MSCI ACW Ex US Index (Gross)Buy and Hold Sector Attribution Graph


Page 62


Total Attribution

City of Phoenix Employees' Retirement SystemBaillie Gifford IE Growth vs. MSCI ACW Ex US Index (Gross)Buy and Hold Region Attribution Graph


Page 63




Mondrian IE SC 11.91 9.89

MSCI Wrld Ex US Sm Cap Index (Gross) 14.00 11.71

Median 17.62 11.10

3Years

3Years

3Years

3Years

3Years

3Years

Mondrian IE SC 1.20 (88) 3.35 (69) -0.63 (98) 4.90 (34) 83.46 (93) 79.03 (27)

MSCI Wrld Ex US Sm Cap Index (Gross) 1.19 (90) 0.00 (100) N/A 5.46 (12) 100.00 (71) 100.00 (7)

Median 1.52 3.94 0.75 4.53 105.20 65.86

Population 84 84 84 84 84 84

City of Phoenix Employees' Retirement SystemMondrian IE SC vs. IM International Small Cap Equity (SA+CF)

As of June 30, 2015


Page 64


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Croda International PLC 3.52 0.00 3.52 7.80

Chr.Hansen Holdings AS 3.23 0.22 3.01 6.31

Rotork PLC 2.98 0.15 2.83 0.64

Capitamall Trust 2.80 0.00 2.80 0.74

Spirax-Sarco Engineering PLC 2.64 0.18 2.46 6.77

Nifco Inc 2.59 0.09 2.50 25.56

MTU Aero Engines AG 2.40 0.22 2.18 -2.58

CAE Inc. 2.24 0.00 2.24 2.57

Ascendas Real Est Investment Trust 2.23 0.00 2.23 -0.38

Gaztransport et Technigaz 2.23 0.06 2.17 9.59



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 3,057 2,305









City of Phoenix Employees' Retirement SystemMondrian IE SC vs. MSCI Wrld Ex US Sm Cap Index (Gross)Portfolio Characteristics

As of June 30, 2015


Page 65


Total Attribution

City of Phoenix Employees' Retirement SystemMondrian IE SC vs. MSCI Wrld Ex US Sm Cap Index (Gross)Buy and Hold Sector Attribution Graph


Page 66


Total Attribution

City of Phoenix Employees' Retirement SystemMondrian IE SC vs. MSCI Wrld Ex US Sm Cap Index (Gross)Buy and Hold Region Attribution Graph


Allocation to “Other” consists of holdings domiciled in countries/regions that do not meet economic development, size, liquidity or market accessibility criteria as defined by the MSCI region standards.

Page 67




Western Asset Mgmt Co 5.17 4.74

Barclays US Agg Bond Index 4.44 3.25

Median 4.88 3.48

10Years

10Years

10Years

10Years

10Years

10Years

Western Asset Mgmt Co 0.75 (87) 3.44 (11) 0.22 (66) 2.04 (9) 118.14 (12) 121.96 (13)

Barclays US Agg Bond Index 0.90 (64) 0.00 (100) N/A 1.11 (75) 100.00 (90) 100.00 (46)

Median 0.95 1.32 0.37 1.22 108.10 99.10

Population 136 136 136 136 136 136

City of Phoenix Employees' Retirement SystemWestern Asset Mgmt Co vs. IM U.S. Broad Market Core Fixed Income (SA+CF)

As of June 30, 2015


Page 68


Portfolio Benchmark

Effective Duration 6.15 5.63

Spread Duration 4.18 5.73

Convexity -0.61 0.09

Avg. Maturity 11.13 7.87

Avg. Quality A2 Aa1/Aa2

Yield To Maturity (%) 3.73 2.39

Coupon Rate (%) 3.87 3.20

Yield To Worst (%) 3.74 2.39

Current Yield (%) 4.54 N/A

Holdings Count 627 9,496

Sector Distribution (%)

City of Phoenix Employees' Retirement SystemWestern Asset Mgmt Co vs. Barclays US Agg Bond IndexPortfolio Characteristics

As of June 30, 2015

Negative sector allocation reflects manager's use of derivatives. Portfolio allocation to "Other" consists of credit non-corp.

Page 69




Aberdeen Total Return Bond 3.95 3.19


Median 3.91 2.96

5Years

5Years

5Years

5Years

5Years

5Years

Aberdeen Total Return Bond 1.21 (67) 1.05 (25) 0.56 (67) 1.72 (4) 114.86 (33) 106.61 (8)


Median 1.28 0.66 0.79 1.41 109.32 87.82

Population 143 143 143 143 143 143

City of Phoenix Employees' Retirement SystemAberdeen Total Return Bond vs. IM U.S. Broad Market Core Fixed Income (SA+CF)

As of June 30, 2015


Page 70


Portfolio Benchmark


Modified Duration 5.39 5.53

Convexity 0.49 0.09


Avg. Quality Aa3 Aa1/Aa2






City of Phoenix Employees' Retirement SystemAberdeen Total Return Bond vs. Barclays US Agg Bond IndexPortfolio Characteristics

As of June 30, 2015

Allocation to "Other" consists of sovereign supranational and covered securities.

Page 71




PIMCO Total Return 3.80 3.25


Median 3.91 2.96

5Years

5Years

5Years

5Years

5Years

5Years

PIMCO Total Return 1.14 (80) 1.61 (11) 0.28 (84) 1.73 (3) 113.03 (36) 112.17 (6)


Median 1.28 0.66 0.79 1.41 109.32 87.82

Population 143 143 143 143 143 143

City of Phoenix Employees' Retirement SystemPIMCO Total Return vs. IM U.S. Broad Market Core Fixed Income (SA+CF)

As of June 30, 2015


Page 72


Portfolio Benchmark



Convexity -0.91 0.09


Avg. Quality Aa2 Aa1/Aa2






City of Phoenix Employees' Retirement SystemPIMCO Total Return vs. Barclays US Agg Bond IndexPortfolio Characteristics

As of June 30, 2015

Negative sector allocation reflects manager's use of derivatives. Cash equivalents are defined as any security with duration under one year. Allocation to"Other" consists of Euro/Yankees.

Page 73


Portfolio Benchmark




Avg. Quality Ba1 Ba1



Yield To Worst (%) 5.51 5.52

Holdings Count 328 490


City of Phoenix Employees' Retirement SystemMFS Emerging Markets Debt vs. JPM EMBI Gbl Dvf'd TR IndexPortfolio Characteristics

As of June 30, 2015

Page 74

Historical Asset Allocation - 10 Years Through the Previous Quarter PIMCO All Asset vs. AA Custom Index - As of the Previous Quarter

Historical Statistics - 10 Years Actual Correlation - 10 Years

Allo

catio

n (

%)

1. E

quity

- Nat

. Res

ourc

es

2. C

omm

odities

3. In

flatio

n Link

ed B

onds

4. F

loat

ing

Rat

e Bon

ds

5. R

EITs

6. N

ominal

Bon

ds

7. E

quity

- Non

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8. O

ther

(Inc

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ActualCorrelation

All Asset Custom Index 0.94

S&P 500 Index (Cap Wtd) 0.77

Russell 2000 Index 0.70

MSCI EAFE Index (Net) 0.86

MSCI Emg Mkts Index (Net) 0.89

Barclays US Agg Bond Index 0.50

Barclays US Trsy: US TIPS Index 0.69

Wilshire US REIT Index 0.71

HFN FOF Multi-Strat Index (Net) 0.67

Bbrg Cmdty Index (TR) 0.70

BofA ML 3 Mo US T-Bill Index -0.36

Consumer Price Index + 5% 0.16

PIMCO:AllAsset;Inst (PAAIX)

All Asset CustomIndex

S&P 500 Index(Cap Wtd)

Barclays US AggBond Index

Standard Deviation 9.11 5.96 14.68 3.28

Sharpe Ratio 0.45 0.68 0.50 0.91

Downside Risk 6.37 4.06 10.29 1.65

Excess Return 4.13 4.07 7.31 3.00

City of Phoenix Employees' Retirement SystemPIMCO:All Asset;Inst (PAAIX)Asset Allocation & Statistics

As of June 30, 2015

Primary Real Return strategies and asset classes are represented by the colored shades and are denoted by categories 1 through 5.Statistics are based on monthly net of fees returns and are product specific.Please see the Addendum for custom index definitions.

Page 75

City of Phoenix Employees' Retirement SystemPAAMCO Newport PhoenixAbsolute Return Statistics

Year Firm Established 2000 Number of Underlying Managers 26Firm AUM ($M) $9,640 Maximum Weighting of an Underlying Manager 9.20%Percentage Employee Owned 73% Current Leverage (Assets/Equity) 1.19Account Inception 2009 Net Long Percentage 62.80%

Equity Beta 0.24Annual Manager Turnover 18.91%

Fund statistics and commentary shown are provided by the investment manager. Strategic allocation to "Other" consists of equity market neutral. Geographic allocation to "Asia" excludes Japan/Middle East & Oceania.L/S: Long/Short

As of June 30, 2015

Geographic Allocation ChartStrategy Allocation Chart

Most Recent Quarter Performance Manager Commentary

• The second quarter saw significant market gyrations, with erratic sentiment impacting valuations. This volatility was particularly visible across our event-driven themes, as well as our Europe Recovery theme, in June.• Exposure to Asia was additive, driven by our allocation to China. Although after quarter end China was impacted by the reversal in both onshore and offshore Chinese equities.• Event/Catalyst Driven and Core Equity allocations performed the weakest, particularly the latter as it struggled due to sharp macro-economic trend reversals during the quarter.• We continue to favor fundamental strategies; for example, we expect value realization from our Stressed Assets/Restructuring portfolio over the next 12 months, particularly in the energy, media and telecommunications sectors.

Fund StatisticsFirm Statistics

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Long Short Net

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City of Phoenix Employees' Retirement System As of June 30, 2015Carlson Double Black DiamondAbsolute Return Statistics

Year Firm Established 1993 Current Leverage (Assets/Equity) 1.89Firm AUM ($M) $9,106 Annual Management Fee 1.50%Percentage Employee Owned 5% Performance Fee 20.00%Account Inception 2014


Fund statistics and commentary shown are provided by the investment manager. Performance shown is product specific and may include updated valuations. Geographic regions have been defined by Carlson Capital, L.P. in its discretion. Classifications are generally derived by the relevant issuer’s country of domicile, and may or may not fully reflect that issuer’s geographic exposure. Geographic Allocation to “Other” may include, but is not limited to, instruments that otherwise do not fit into another category in Carlson Capital, L.P.’s discretion.L/S: Long/Short



Double Black Diamond Ltd., Series E was up 1.65% net of fees for the second quarter. All of our strategies were profitable for the quarter, with our credit strategies, led by our energy credit portfolio, contributing the largest share of the quarter's gains. The event-driven and equity long/short strategies also generated solid performance. Equity relative value, conversely, had a weak quarter and contributed only modestly. Most of our strategies, especially equity relative value, are structurally short momentum, which has placed a damper on performance over most of the last twelve months. With all stocks seemingly over-valued, investors are just buying the ones with the best stories, regardless of valuation. We believe we are positioned to benefit form a break in market momentum, and a break is overdue. The fund models slightly net short and is exhibiting a negative correlation with the equity market. We reduced risk during the quarter both in terms of market exposure and fund leverage as we await more compelling opportunities to put capital to work.

-40%-30%-20%-10%

0%10%20%30%

Long Short Net

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0%20%40%60%80%

Long Short Net

Page 77

City of Phoenix Employees' Retirement System As of June 30, 2015Fir Tree International ValueAbsolute Return Statistics

Year Firm Established 1994 Current Leverage (Assets/Equity) 0.85Firm AUM ($M) $13,077 Net Long Percentage 50.53%Percentage Employee Owned 100% Beta (since inception) 0.33Account Inception 2014 Annual Management Fee 1.50%

Performance Fee 20.00%


Fund statistics and commentary shown are provided by the investment manager. Allocation to "Event Equities" consists of special situations and long term arbitrage; allocation to "Credit" includes corporate credit, capital structure arbitrage, and credit shorts. Strategic Allocation to "Other" consists of portfolio hedges and yielding securities.



The Fund’s most profitable investment strategy was Value Equities. Top contributors in this theme were investments in a global life insurance company, a healthcare services provider, the largest auto aftermarket parts retailer in the U.S., and an auto finance company. The leading performer in the Special Situations strategy was our investment in an auto dealer management system company, which continued to re-rate due to a dramatic margin improvement opportunity. Other contributors in Special Situations included a data center provider, a renewable energy company, a Brazilian education company and a Japanese retail bank. The largest detractors in Special Situations were mark-to-market losses on the Fund’s car rental companies. Within Structured/Mortgage Credit, the Fund’s RMBS investments benefitted from continued success with our activist recovery efforts and paydowns. The Capital Structure Arbitrage strategy was flat on the quarter, as gains from our Venezuela sovereign credit investment were offset by losses in our Argentina and distressed South African electricity company investments. The biggest strategy detractor in Q2 was Yielding Securities. The Fund’s basket of energy pipeline companies sold off due to concerns about impending interest rate increases, declining oil prices, and noise around M&A transactions. The other detractor in Yielding Securities included investments in Mexican REITs which traded lower due to emerging markets weakness. The biggest loss in the Corporate Credit strategy was the Fund’s investments in various Puerto Rico municipal bonds. The Fund’s Long Term Arbitrage and Portfolio Hedges strategies also declined over the quarter. Within Long Term Arbitrage, our advertising company pair trade investment had mark-to-market losses yet we remain quite constructive. The Fund’s Australian rate options also declined.

-60%

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20%

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60%

Long Short Net

-60%-40%-20%

0%20%40%60%80%

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Page 78

RVK began monitoring the assets of City of Phoenix Employees' Retirement System as of April 1, 2005. Historical data was provided by the previous investment consultant.

Performance and market value data shown for the real estate investments and absolute return is provided by State Street.

Performance Comments

Performance shown is gross of fees, unless otherwise noted.

Performance for real estate funds (with the exception of JP Morgan Real Estate) and the NCREIF ODCE Index (Gross) (AWA) is calculated on a quarterly basis. The interim months assume a 0.00%return for the Target Benchmark and Actual Allocation Benchmark.

RVK cautions that the interpretation of time-weighted data on non-marketable investments such as real estate and private equity is imperfect at best and can potentially be misleading.


Manager Comments

J.P Morgan Real Estate was incepted in April 2007.

Research Affiliates was incepted in June 2007.

Northern Trust Fixed Income was liquidated in October 2007.

Cramer Rosenthal McGlynn Small Cap Value was incepted in January 2008.

PAAMCO Newport Phoenix was incepted in December 2008.

Wrightwood Capital was incepted in January 2009.

K2 Advisors Long/Short Equity was incepted in May 2009.

Real Estate Capital Asia Partners II was incepted in September 2009.

JDM Partners was incepted in January 2010.

Northern Trust Equity LCC was liquidated in April 2010.

S&P 500 SSGA SPDR was incepted in April 2010.

TA Associates Realty Fund IX was incepted in April 2010.

iShares:MSCI EAFE SmCp was incepted in May 2010.

Aberdeen (FKA Artio) Total Return Bond and PIMCO Total Return were incepted in June 2010.

Fidelity (Pyramis) was liquidated in June 2011.

iShares:MSCI EAFE SmCp was liquidated in July 2011.

Baillie Gifford IE Growth and Mondrian IE SC were incepted in June 2011.

SSgA MSCI ACW Ex US Index was incepted in July 2011.

City of Phoenix Employees' Retirement SystemAddendum

As of June 30, 2015

Page 79


As of June 30, 2015

Real Estate Capital Asia Partners III was incepted in February 2012.

Wheelock Street Partners was incepted in May 2012.

S&P 500 SSGA SPDR was liquidated in September 2012.

SSgA S&P 500 Index Strategy was incepted in September 2012.

MFS Emerging Markets Debt was incepted in January 2013.

Dimensional Fund Advisors LCV was liquidated in April 2013.

Robeco LCV was incepted in April 2013.

GMO Global Equity Allocation Fund was incepted in September 2013.

PIMCO:All Asset;Inst (PAAIX) was incepted in November 2013.

Research Affiliates was liquidated in December 2013.

Northwood Series IV was incepted in January 2014.

Grantham, Mayo, Van Otterloo Int'l was liquidated in March 2014.

Carlson Double Black Diamond and Wheelock Street Partners II were incepted in August 2014.

Artisan Global Opportunities and Fir Tree International Value were incepted in November 2014.

SSgA FTSE RAFI US Low Vol was incepted in December 2014.

SSgA S&P 500 Index Strategy completed liquidation in March 2015.

Real Estate Capital Asia Partners IV TE LP and Northwood Series V were incepted in January 2015.

Neuberger Berman Sonoran was incepted in March 2015.


Page 80


As of June 30, 2015

Custom Index Comments

The Target Allocation Benchmark is calculated monthly and currently consists of 22% Russell 3000 Index, 19% MSCI ACW Ex US IM Index (Gross), 20% Barclays US Agg Bond Index, 5% JPM EMBIGbl Dvf'd TR Index, 8% Consumer Price Index + 4%, 15% NCREIF ODCE Index (Gross) (AWA), 1% Russell 3000 Index + 3%, and 10% ARS Custom Benchmark.



The All Asset Custom Index is an equal-weighted hybrid that consists of the following benchmarks:· Short Term Strategies: BofA ML 1 Year T-Bill Index· US Core and Long Maturity Bond Strategies: Barclays US Aggregate Bond Index· EM and Global Bond Strategies: PIMCO GLADI Index*· Credit Strategies: BofA ML US High Yield Master II Index· Inflation Related Strategies: Barclays US Treasury: US TIPS Index· US Equity Strategies: Russell 3000 Index· Global Equity Strategies: MSCI All Country World Index (USD) (Net)· Alternative Strategies: BofA ML 3 Mo US T-Bill Index + 3%

* Performance for the PIMCO Global Advantage Bond Index-London Close prior to January 2004 consists of the JPMorgan EMBI Global Diversified Total Return Index (USD).

The ARS Custom Benchmark is calculated monthly using beginning of month investment weights applied to each corresponding primary benchmark return from August 2014 forward. Performance prior to that consists of the HFRI FOF Comp Index.

Miscellaneous Comments

Manager peer group names now include the abbreviation "IM" at the beginning of each name. "IM" is the acronym for Investment Metrics, the provider of peer group data used in ranking investmentmanagement performance.

Page 81

Glossary Alpha - A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. It is a measure of the portfolio's historical performance not explained by movements of the market or a portfolio's non-systematic return. Alpha Ratio - A measure of a portfolio's non-systematic return per unit of downside risk. It is measured by dividing the alpha of a portfolio by the downside risk. The non-systematic return is a measure of a portfolio's historical performance not explained by movements of the market. Average Quality - Bond quality ratings are reported using the investment managers' and the index providers' preferred rating agency. Average Quality for managers unable to provide this statistic has been estimated using a credit quality distribution provided by the manager. There are two primary rating agencies in the US. Moody's assigns ratings on a system that employs up to four symbols (consisting of letters and numbers) such as, Aaa, Aa2, etc., with Aaa being the highest or safest rating. Standard & Poor's (S&P) employs a system that uses + and - along with letters such as AAA, AA+, etc. The two rating agencies' systems are summarized below:

S&P

Moody’s Explanation S&P Moody’s Explanation

Higher Credit Quality – Investment Grade Lower Credit Quality – Below Investment GradeAAA Aaa Prime/Highest credit quality BB+ Ba1 Speculative/Low credit quality AA+ Aa1 High credit quality BB Ba2 AA Aa2 BB- Ba3 AA- Aa3 B+ B1 Highly speculative A+ A1 Upper-medium credit quality B B2 A A2 B- B3 A- A3 CCC+ Caa1 Substantial credit/default risk BBB+ Baa1 Lower-medium credit quality CCC Caa2 Extremely speculative BBB Baa2 CCC- Caa3 BBB- Baa3 CC Ca Vulnerable to default C Ca D C In default

Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of a portfolio's non-diversifiable or systematic risk. Buy and Hold Attribution - At the beginning of the time period under analysis, the manager and benchmark portfolios are broken down into segments (i.e., styles, sectors, countries, and regions) based on the desired type of attribution. The formula assumes zero turn-over to the manager and benchmark portfolios throughout the period and calculates the segment returns ("buy and hold returns") to arrive at performance attribution. Due to portfolio turnover, buy and hold attribution may not accurately represent quarterly performance relative to the benchmark. Country, region, sector, and style allocations are as of the date one quarter prior to the reporting date, and the returns shown are for those segments throughout the quarter reported. Due to disclosure guidelines set by each investment manager, equity characteristics shown are as of the most recent date available. The following is the methodology for segment classification:

Sector - Attribution is calculated using the Global Industry Classification Standard (GICS) which is a detailed and comprehensive structure for sector and industry analysis. Stocks are classified by their primary sector, as defined by S&P Capital IQ data. Country/Region - Attribution is calculated using the Morgan Stanley Capital International (MSCI) region standards. Stocks are classified by their domicile country/region, as defined by S&P Capital IQ data. Style - Stocks are classified into the following style boxes: large/mid/small vs. growth/neutral/value. Stocks are classified along large/mid/small categories at the time of the Russell index rebalancing, using the index market cap boundaries as cutoff points. Stocks are classified along growth/neutral/value categories at the time of the Russell index rebalancing, using the price/book ratio as supplied by S&P Capital IQ. Stocks in the Russell 3000 Index portfolio are sorted by price/book ratio; names with the highest price/book ratio that make up 1/3 of the total market capitalization are assigned to the growth category, names that make up the subsequent 1/3 of the total market capitalization are assigned to the neutral category, while the balance of the names are assigned to the value category.

Portfolio Characteristics and Buy and Hold Attribution reports utilize product-specific data for all mutual funds and commingled funds.

Page 82

Glossary Capital Markets Review -

Breakeven Inflation - Measures the expected inflation rate at each stated maturity by taking the difference between the real yield of the inflation-linked maturity curve and the yield of the closest nominal Treasury maturity. Consumer Confidence - Measures domestic consumer confidence as defined by the degree of optimism on the state of the economy that consumers express through saving and spending. Consumer Price Index (CPI) - Measures the change in the price level of consumer goods and services. Option-Adjusted Spread - Measures the flat spread of an index or bond to the Treasury yield curve after removing the effect of any embedded options. Purchasing Managers Index (PMI) - Measures economic activity by surveying purchasing managers on a monthly basis as to whether business conditions have improved, worsened, or stayed the same. US Dollar Total Weighted Index - Measures the value of the US Dollar relative to a basket of other world currencies. It is calculated as the weighted geometric mean of the dollar's value versus the EUR, GBP, CAD, SEK, CHF, and JPY. VIX - Measures the implied volatility of S&P 500 Index options by looking at the market's expectation of the S&P 500 Index volatility over the next 30 day period. Commonly referred to as the "fear index" or the "fear gauge."

Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, the more value a manager has contributed to the product's performance. Convexity - A measure of the shape of the curve that describes the relationship between bond prices and bond yields. Correlation - A statistical measure of the relationship between asset class returns. A value of 1.00 is a perfect correlation; that is, the asset classes always move in the same direction. A value of -1.00 indicates a perfect negative correlation, in which the asset classes always move in opposite directions of each other. A value of 0 indicates there is no relationship between the direction of returns of the two asset classes. Correlation calculations only consider the direction of changes relative to two variables and not the magnitude of those changes. Coupon Rate - The percentage rate of interest paid on a bond or fixed income security; it is typically paid twice per year. Current Yield - The annual income of a security divided by the security's current price. Down Market Capture - Down market by definition is negative benchmark return and down market capture represents the ratio in % terms of the average portfolios return over the benchmark during the down market period. The lower the value of the down market capture the better the product's performance. Downside Risk - A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the factor, the riskier the product. Earnings Per Share - It is backward looking, calculated using the one year current EPS divided by the one year EPS five years ago. Effective Duration - The weighted average duration of all the bonds in a given portfolio, weighted by their dollar values. Excess Return vs. Market - Average of the monthly arithmetic difference between the manager's return and the benchmark return over a specified time period, shown on an annualized basis. Excess Return vs. Risk Free - Average of the monthly arithmetic difference between the manager's return and the risk-free return (i.e., BofA ML 3 Mo US T-Bill Index unless specified otherwise) over a specified time period, shown on an annualized basis. Excess Risk - A measure of the standard deviation of a portfolio's performance relative to the risk free return. Expense Ratios - Morningstar is the source for mutual fund expense ratios. Gain/Loss - The net increase or decrease in the market value of a portfolio excluding its Net Cash Flow for a given period. Indices - All indices and related information are considered intellectual property and are licensed by each index provider. The indices may not be copied, used or distributed without the index provider's prior written approval. Index providers make no warranties and bear no liability with respect to the indices, any related data, their quality, accuracy, suitability and/or completeness. Information Ratio - Measured by dividing the active rate of return by the tracking error. The higher the information ratio, the more value-added contribution by the manager.

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Glossary Liability Driven Investing (LDI) - A method to optimally structure asset investments relative to liabilities. The change in liabilities is estimated by the Ryan Labs Generic PPA Index of appropriate duration for that Plan. This benchmark is based on generic data and is therefore an approximation. RVK is not an actuarial firm, and does not have actuarial expertise.

Estimated Funded Status - The estimated ratio of a Plan's assets relative to its future liabilities. This is calculated by dividing the Plan's asset market value by the estimated present value of its liabilities. The higher the estimated funded status, the better the Plan's ability to cover its projected benefit obligations. An estimated funded status of 100% indicates a Plan that is fully funded. Estimated PV of Liabilities - An estimate of a Plan's future liabilities in present value terms. The beginning of the period liability is provided by the Plan's actuary. The period-end present value liability estimate provided in this report is derived by applying the estimated percentage change generated using the Ryan Labs Generic PPA Index with duration similar to that reported on the most recent actuarial valuation report. Duration of Liabilities - The sensitivity of the value of a Plan's liabilities to changes in interest rates, as calculated by the Plan's actuary. Duration of Assets - The dollar-weighted average duration of all the individual Plan assets. Estimated Plan Hedge Ratio - The estimate of how well a Plan's investment portfolio is hedged against changes in interest rates - a primary driver of funded status movements. This is calculated by dividing the dollar-weighted values of both the Plan asset duration by the liability duration and multiplying by the estimated funded status. An estimated plan hedge ratio of zero indicates that the Plan's liabilities have not been hedged, whereas a value of one indicates fully hedged.

Modified Duration - The approximate percentage change in a bond's price for a 100 basis point change in yield. Mutual Fund Performance - Whenever possible, manager performance is extended for any share class that does not have 10 years of history. Using Morningstar’s methodology, a single ticker within the same fund family (often the oldest share class) is chosen to append historical performance. Net Cash Flow - The sum, in dollars, of a portfolio's contributions and withdrawals. This includes all management fees and expenses only when performance shown is gross of fees. Peer Groups -

Plan Sponsor Peer Groups - RVK utilizes the Mellon Analytical Solutions Trust Universe along with the Investment Metrics Plan Sponsor Universe. The combined Mellon Analytical Solutions Trust Universe and Investment Metrics Plan Sponsor Universe is used for comparison of total fund composite results and utilizes actual client returns compiled from consultant and custodial data. The Plan Sponsor Peer Group database includes performance and other quantitative data for over 2,100 plans which include corporate, endowment, foundation, public, and Taft Hartley plans. Plan Sponsor Peer Groups are gross of fees. Institutional Peer Groups (Separate Account and Commingled Fund) - RVK utilizes the Investment Metrics Separate Account and Commingled Fund Manager Peer Groups for peer comparison and rankings. The Separate Account and Commingled Fund Peer Group database includes performance and other quantitative data for over 1,000 investment management firms, 6,400 investment products, across 100 standard peer groups. Separate Account and Commingled Fund Peer Groups are gross of fees. Mutual Fund (MF) Peer Groups - RVK utilizes the Lipper Mutual Fund Manager Peer Groups for peer comparison and rankings. The Lipper Manager Peer Group database includes performance and other quantitative data for over 700 investment management firms and 24,500 investment products, across more than 140 standard peer groups. Mutual Fund Peer Groups are net of fees.

Percentile Rankings - Percentile rank compares an individual fund's performance with those of other funds within a defined peer group of managers possessing a similar investment style. Percentile rank identifies the percentage of a fund's peer group that has a higher return (or other comparative measurement) than the fund being ranked. Conversely, 100 minus the individual fund's ranking will identify the percentage of funds within the peer group that have a lower return than the fund being ranked. 1 - Highest Statistical Value 100 - Lowest Statistical Value Example: American Funds AMCP;R-4 (RAFEX) is ranked in the 4th percentile within the IM US Equity Large-Cap Growth Funds (MF) Peer Group for the Sharpe Ratio. Within the IM US Equity Large-Cap Growth Funds peer group, 4% of the other funds performed better than American Funds AMCP;R-4 (RAFEX), while 96% of the funds performed worse. Performance Methodology - RVK endorses the Global Investment Performance Standards (GIPS) and calculates performance for investment managers and composites using different methodologies. Investment manager performance is calculated by revaluing the portfolio on the date of all large external cash flows while composite performance is calculated using the Modified Dietz calculation methodology. According to the CFA Institute, "Only investment management firms that actually manage assets can claim compliance with the Standards. Plan Sponsors and consultants cannot make a claim of compliance unless they actually manage assets for which they are making a claim of compliance. They can claim to endorse the Standards and/or require that their investment managers comply with the Standards."

Investment Managers - Performance is calculated for interim periods between all large external cash flows for a given month and geometrically linked to calculate period returns. An external cash flow is defined as cash, securities, or assets that enter or exit a portfolio. RVK defines a "large cash flow" as a net aggregate cash flow of ≥10% of the beginning-period portfolio market value or any cash flow that causes RVK calculated performance to deviate from manager/custodian reported performance in excess of 5 basis points for a given month.

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Glossary

Composites - The Modified Dietz methodology is utilized to calculate asset class, sub-asset class, and total fund composite performance. The Modified Dietz method calculates a time-weighted total rate of return that considers the timing of external cash flows; however, it does not utilize interim period performance to mitigate the impact of significant cash in- and outflows to the composite.

RVK calculates performance beginning with the first full month following inception. Since inception performance may vary from manager reported performance due to RVK using the first full month of returns as the inception date. Performance for both managers and composites is annualized for periods greater than one year. Portfolio Characteristics - Due to disclosure guidelines set by each investment manager, portfolio characteristics shown are as of the most recent date available. Private Equity Quartile Ranks - Private Equity quartile ranks are generated using vintage year peer group data provided by Thomson Reuters, and are based on each fund’s annualized, since inception internal rate of return (IRR). Three Private Equity peer groups are available via Thomson Reuters: Buyout, Venture, and All Private Equity. Ranks are available quarterly, at a one-quarter lag.

Return - Compounded rate of return for the period. % Return - The time-weighted rate of return of a portfolio for a given period. R-Squared - The percentage of a portfolio's performance explained by the behavior of the appropriate benchmark. High R-Squared means a higher correlation of the portfolio's performance to the appropriate benchmark. Risk Free Benchmark - BofA ML 3 Mo US T-Bill Index unless specified otherwise. RVK Liquidity Rating - A qualitative method for determining the relative amount of liquidity in a portfolio. The characteristics considered when determining relative liquidity include trading volume, gates for redemption, leverage, nature of transactions, and pricing mechanisms. The RVK Liquidity Rating is calculated using beginning of month investment weights applied to each corresponding asset class liquidity rating.

Asset Class RVK Liquidity Rating Asset Class RVK Liquidity RatingLiquid Investments Less Liquid Investments T-Bills and Treasurys 100 Fixed Income Plus Sector 50 Cash Equivalents 98 Bank Loans 50 TIPS 95 Stable Value (Plan Sponsor Directed) 50 US Large Cap Equity 95 Absolute Return Strategies 35 Diversified Real Return 93 Stable Value (Participant Directed) 91 Non-US Large Cap Equity 90 Not Liquid InvestmentsGlobal Tactical Asset Allocation 88 Core Real Estate 25 US Small Cap Equity 85 Core Plus Real Estate 15 REITS 85 Plus Only Real Estate 5 Non-US Small Cap Equity 85 Private Equity Funds of Funds 5 Emerging Markets Equity 85 Core Fixed Income 85 Core Plus Fixed Income 80

Sharpe Ratio - Represents the excess rate of return over the risk-free return (i.e., BofA ML 3 Mo US T-Bill Index unless specified otherwise), divided by the standard deviation of the excess return. The result is the absolute rate of return per unit of risk. The higher the value, the better the product's historical risk-adjusted performance. Simple Alpha - The difference between the manager's return and the benchmark's return. Spread Duration - A measure of the price sensitivity of a bond to a 100 basis-point movement of the bond's spread relative to Treasurys.

Page 85

Glossary Standard Deviation - A statistical measure of the range of a portfolio's performance. The variability of a return around its average return over a specified time period. Time Period Abbreviations - QTD - Quarter-to-Date. CYTD - Calendar Year-to-Date. FYTD - Fiscal Year-to-Date. YOY - Year Over Year. Thematic Classification - Represents dedicated manager allocations; as such, thematic allocations are approximations. RVK categorizes the following asset classes as Alpha, Capital Appreciation, Capital Preservation, and Inflation:

Alpha Capital Appreciation Capital Preservation Inflation Absolute Return Strategies Public Equity Core Fixed Income TIPS Currency Overlay Private Equity CMBS Fixed Income Bank Loans Preferred Securities Asset Backed Fixed Income Core Real Estate High Yield Domestic Core Plus Fixed Income Real Return Convertible Fixed Income Mortgage Backed Fixed Income Inflation Hedges TALF Funds International Developed Fixed Income REITS Distressed Debt Cash Equivalents Commodities Emerging Market Fixed Income Stable Value Value Added Real Estate Opportunistic Real Estate

Total Fund Attribution - A method for identifying the sources of a total fund's over- or underperformance relative to its benchmark. The calculation identifies the contributions of positive or negative total fund excess return caused by allocation differences relative to the total fund's custom benchmark, and performance differences of the investment managers relative to the benchmark components that represent them.

Total Fund Performance - Total Fund - The percentage return of the total fund for the specified time period. Total Fund Benchmark - The percentage return of the total fund benchmark for the specified time period; calculated using the target asset allocation and the corresponding benchmark returns. Total Value Added - The percentage of over- or underperformance of the total fund as compared to the total fund benchmark.

Total Value Added - Asset Allocation - Shows how the variance of the total fund's actual allocation from its target allocation added to or subtracted from fund performance. Manager Value Added - The portion of the total value added attributable to the outperformance or underperformance of the fund's investment managers, relative to the individual benchmarks that represent them in the total fund benchmark. Market Timing/Other - The contribution of other residual factors, including estimation error and transaction timing.

Total Fund Beta - Total Fund Beta is calculated using the S&P 500 as the benchmark. It represents a measure of the sensitivity of the total fund to movements in the S&P 500 and is a measure of the Total Fund's non-diversifiable or systematic risk. Tracking Error - A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark. Treynor Ratio - Similar to Sharpe ratio, but focuses on beta rather than excess risk (standard deviation). Treynor ratio represents the excess rate of return over the risk-free rate (i.e., BofA ML 3 Mo US T-Bill Index unless specified otherwise) divided by the beta. The result is the absolute rate of return per unit of risk. The higher the value, the better historical risk-adjusted performance. Unit Value - The dollar value of a portfolio, assuming an initial nominal investment of $100, growing at the compounded rate of %Return for a given period. Up Market Capture - Up market by definition is positive benchmark return and up market capture represents the ratio in % terms of the average portfolios return over the benchmark during the up market period. The higher the value of the up market capture the better the product's performance. Yield to Maturity - The rate of return achieved on a bond or other fixed income security assuming the security is bought and held to maturity and that the coupon interest paid over the life of the bond will be reinvested at the same rate of return. Yield to Worst - The bond yield calculated by using the worst possible yield taking into consideration all call, put, and optional sink dates.

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Asset Allocation vs. Target Allocation Asset Allocation vs. Target Allocation Differences

Custom Benchmark Comments:

The COPERS Total Fund is evaluated versus two custom benchmarks -- the Target Allocation Benchmark and the Actual Allocation Benchmark.

The Target Allocation Benchmark illustrates how the Total Fund would have performed if its allocation were exactly in-line with the established targets, and if the managersperformed exactly as their benchmarks did. As such, the Target Benchmark represents the combined effect of two contributors to plan performance: 1) short-term variations of theplan's actual asset allocation vs. the constant allocation of the plan's target allocation, and 2) individual manager performance over their specific benchmarks. It is calculatedmonthly using the plan's target allocation, and currently consists of: 22% Russell 3000 Index, 19% MSCI ACW Ex US IM Index (Gross), 20% Barclays US Agg Bond Index, 5%JPM EMBI Gbl Dvf'd TR Index, 8% Consumer Price Index + 4%, 15% NCREIF ODCE Index (Gross) (AWA), 1% Russell 3000 Index + 3%, and 10% ARS Custom Benchmark.The right-hand column labeled "Target" on the table below shows the percentages that comprise the target portfolio.

The Actual Allocation Benchmark isolates the impact of relative manager performance and its contribution to overall plan performance. The Actual Allocation methodology isolatesmanager performance relative to benchmarks and negates the performance effect of allocation disparities relative to the target asset allocation. The Actual Allocation Benchmarkis calculated monthly based on the beginning-period weight of each asset class and its corresponding primary benchmark. The portfolio's actual allocation, shown in the columnlabeled "Allocation" in the table below, changes as markets fluctuate and the plan moves assets incrementally toward its long-term target. In periods of divergent marketperformance, asset class weights can vary significantly from their targets. Evaluating the total fund against the actual allocation benchmark removes the effect of these fluctuatingasset class weights by applying the same weight to the benchmark calculation that is present in the actual portfolio. The Actual Allocation Benchmark is especially useful inperiods when the plan's allocation varies significantly from its target.

Market Value($)

Allocation(%)

Target(%)

Domestic Equity 531,449,645 23.89 22.00

International Equity 430,477,063 19.35 19.00

Domestic Fixed Income 405,984,518 18.25 20.00

Emerging Markets Debt 103,301,123 4.64 5.00

Real Return 166,073,362 7.47 8.00

Real Estate 281,459,395 12.65 15.00

Private Equity 7,950,000 0.36 1.00

Absolute Return 259,382,626 11.66 10.00

Cash Equivalent 38,585,958 1.73 0.00

Total Fund 2,224,663,691 100.00 100.00

City of Phoenix Employees' Retirement SystemActual Allocation vs. Target Allocation

As of June 30, 2015

Allocation shown may not sum up to 100% exactly due to rounding.

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Robeco LCV is a large cap value separate account investing in U.S. value stocks. The manager’s process leads to a balanced portfolio of different types of value stocks.

SSgA FTSE RAFI US Low Vol is a large cap core commingled fund that seeks to track the FTSE RAFI US Low Volatility Index.

Artisan Global Opportunities is a global large cap commingled fund that identifies mid- to large-cap global franchises that are experiencing an acceleration in their profit cycleand poised to outperform growth expectations. The companies in this portfolio will normally be “best of breed” dominant firms, low cost producers, proprietary asset holders or have products with strong brand recognition.

The Boston Company Mid-Cap Opportunistic Value separate account is the System's mid cap manager and invests in mid-cap U.S. equity. The manager's style is diverse,with wide latitude to invest the portfolio along the growth and value spectrum as it sees fit.

Cramer Rosenthal McGlynn is a small cap value separate account with exposure to U.S. Value stocks. The manager's style is relative value, meaning that its portfolio will notbe as "value"-oriented as the benchmark.

Eagle Asset Management is a small cap growth separate account investing in U.S. growth stocks. The manager's style is growth at a reasonable price (GARP), meaning that it'sportfolio will not be as "growth"-oriented as the benchmark.

GMO Global Equity Allocation is a global large cap equity mutual fund with exposure to U.S., developed international, and emerging market stocks. The manager employs avalue style, utilizing both quantitative and fundamental research techniques in order to identify attractive market segments and individual companies.

SSgA MSCI ACW Ex US Index is an international equity commingled fund that seeks to track the MSCI ACW Ex US Index.

Baillie Gifford IE Growth is an international large/all-cap equity commingled fund with exposure to developed- and emerging-market stocks. The manager employs a growthstyle.

Mondrian IE SC is an international small cap equity commingled fund with exposure to mostly developed-market small-cap stocks. However, the manager does invest incompanies which derive significant revenue from emerging market countries.

Western Asset Management Co. is a core fixed income separate account with exposure to benchmark sectors in addition to sectors within the spread sectors. The manager employs an aggressive spread-management style that will lead it to outperform the benchmark in environments when fixed income yield spreads are declining, and tounderperform it in environments when yield spreads are rising.

Aberdeen Total Return Bond is a core fixed income commingled fund centered on fundamental analysis of macroeconomic factors across the globe, including current andnominal interest rates, country-specific monetary and fiscal policies, inflation expectations, trade and current account balances, and budgets and political environments.

PIMCO Total Return is a core fixed income separate account that adds value through the use of both top-down and bottom-up strategies. The portfolio is constructed by firstlooking at the long run macroeconomic factors and then selecting the underlying securities that will incur acceptable levels of portfolio risk. The manager's philosophy revolvesaround the principle of diversification and believes that no single risk should dominate returns.

MFS Emerging Markets Debt is a hard currency emerging markets debt commingled fund seeking to achieve consistently favorable risk adjusted returns by exploiting marketinefficiencies through superior fundamental analysis, a global search for value, and an emphasis on avoiding downside risk.

City of Phoenix Employees' Retirement SystemManager Summaries

As of June 30, 2015

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City of Phoenix Employees' Retirement SystemManager Summaries

As of June 30, 2015

PIMCO:All Asset;Inst (PAAIX) is a tactical asset allocation strategy fund with a focus on providing real returns and inflation protection. The manager actively allocates theportfolio by looking at various quantitative and qualitative data relating to the U.S. and non-U.S. economies and securities markets. This data includes projected growth trends,forecasts for interest rates and the relationship between valuation levels in the equity and fixed income markets and various segments within those markets, the outlook andprojected growth of various industrial sectors, information relating to the business cycles, borrowing needs and the cost of capital and political trends data relating to tradebalances and labor information.

Morgan Stanley Real Estate is an open-ended commingled core real estate fund investing in a diversified pool of real estate properties in the U.S.

JP Morgan Real Estate is an open-ended commingled core real estate fund investing in a diversified pool of real estate properties in the U.S.

Wrightwood High Yield Partners is a closed-ended, value-added commingled fund investing in structured real estate debt with a focus on mezzanine debt, preferred equity, andfirst mortgage participating interests.

TA Associates Realty Fund IX is a closed-ended, value added commingled fund focused on acquisition of underperforming real estate assets in the major U.S. markets. Thefund will focus on all major property types with specific focus on office and industrial assets.

Real Estate Capital Asia Partners II, III, and IV are closed-ended, non-core real estate funds focused on acquisition, redevelopment, and operation of real estate and real estate-related assets in the Asia-Pacific region.

JDM Partners Opportunity Fund I is a closed-ended, opportunistic commingled fund investing in equity and non-performing real estate debt secured by underperforming classA, income-producing assets in the Southwest U.S., with focus on the Arizona and California markets.

Wheelock Street Partners I is a closed-ended, opportunistic, real estate equity and debt fund focused on investing in high quality property types and out-of-favor opportunitieswhere the firm can establish a competitive edge with an emphasis on downside protection.

Wheelock Street Partners II is a closed-ended, opportunistic, real estate equity and debt fund focused on investing in high quality property types and out-of-favor opportunitieswhere the firm can establish a competitive edge with an emphasis on downside protection. The strategy is the same as Wheelock I, but has a variety of unique investments.

Northwood Series IV and V are opportunistic, real estate equity funds focused on select markets in the U.S. and Western Europe, and broadly-diversified property typestrategies across retail, office, multifamily, hospitality, and industrial assets.

Neuberger Berman Sonoran is a private equity separate account designed to adjust tactical allocations as market conditions and investment opportunities merit consisting of mostly primary and some secondary and opportunistic co-investments. The manager will have ~16-24 investments with allocations to buyouts, special situations, and venture andgrowth capital, mostly within North America.

PAAMCO Newport Phoenix is a custom opportunistic separate account with exposure to a portfolio that invests in hedge funds that cover many different investment styles. Thestrategy will primarily provide exposure to equity and fixed income-oriented managers that focus on security selection.

Carlson Double Black Diamond is a multi-strategy hedge fund with a low beta, relative value approach to investing. The fund is diversified across eight strategies and typicallyholds in excess of 800 positions, with the majority of exposure typically in three core areas: Equity Relative Value, Credit Relative Value, and Event Driven.

Fir Tree International Value is a multi-strategy hedge fund with an opportunistic, value-oriented investment style focused on identifying positions with asymmetric risk-returnprofiles characterized by a significant margin of safety. The fund invests across equity, credit, and real estate strategies and will be relatively concentrated, with the top 20-30 corepositions generally representing 70-80% of the fund.

Dreyfus Gvt Csh Mgt;Inst (DGCXX) mutual fund is the System's cash account.

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Russell 3000 Index: The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equitymarket.

Russell 1000 Value Index: The Russell 1000 Val Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000companies with lower price-to-book ratios and lower expected growth values.

S&P 500 Index: The S&P 500 Index measures the performance of the largest 500 U.S. equities.

FTSE RAFI USD Low Volatility Index: The FTSE RAFI Low Volatility series of indexes attempts to estimate the fundamental value of a company and target stocks that haveproduced below average levels of volatility. In contrast to a market-cap weighted index, the FTSE RAFI Low Volatility Index uses 4 fundamental factors: sales, cash flow, bookvalue and dividends to select and weight the lowest volatility stocks in each sector.

MSCI ACW Index: The MSCI ACW (All Country World) is designed to measure equity market performance in global developed and emerging markets. The 24 developedcountries are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway,Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The 21 emerging market countries are: Brazil, Chile, China, Colombia, CzechRepublic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

Russell 1000 Growth Index: The Russell 1000 Grth Index measures the performance of the large-cap growth segment of largest 1,000 U.S. equities. Growth stocks aresecurities of companies that have been growing rapidly or show signs that they will do so soon. These stocks will often have little or no dividend because assets are needed toinvest in expansion.

Russell Mid Cap Index: The Russell Mid Cap Index measures the middle capitalization segment of U.S. equities, which are the 800 smallest companies in the R 1000 Index.

Russell 2000 Value Index: The Russell 2000 Val Index measures the performance of the small-cap value segment within the 2,000 smallest U.S. companies in the R 3000Index. Value stocks are securities of companies that have lower price-to-book and price earnings, higher dividend yields, and lower forecasted growth rates than growthcompanies.

Russell 2000 Growth Index: The Russell 2000 Grth Index measures the performance of the small-cap growth segment within the 2,000 smallest U.S. companies in the R 3000Index. Growth stocks are securities of companies that have been growing rapidly or show signs that they will do so soon. These stocks will often have little or no dividend becauseassets are needed to invest in expansion.

MSCI ACW Ex US Index: The MSCI ACW Ex US (All Country World excluding US) is designed to measure equity market performance in global developed and emergingmarkets, excluding the US. The 23 developed countries are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy,Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The 21 emerging market countries are: Brazil, Chile,China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, andTurkey.

MSCI ACW Ex US IM Index: The MSCI ACW Ex US IM (Investable Market) Index is similar to the MSCI ACW Ex US Index, but also includes small cap stocks in both thedeveloped and emerging countries listed below.

MSCI EAFE Index: The MSCI EAFE Index (Europe, Australasia, Far East) is designed to measure equity market performance of 22 developed counties, excluding the US &Canada: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal,Singapore, Spain, Sweden, Switzerland and the United Kingdom.

Int'l Equity Custom Benchmark: Consists of the MSCI EAFE Index (Gross) until May 2011 and the MSCI ACW Ex US IM Index (Gross) thereafter.

City of Phoenix Employees' Retirement SystemAsset Class Index Glossary

As of June 30, 2015

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City of Phoenix Employees' Retirement SystemAsset Class Index Glossary

As of June 30, 2015

MSCI World Ex US Small Cap Index: The MSCI World Ex US Small Cap Index is designed to measure equity market performance of small cap companies in global developedmarkets, excluding the US. The 23 developed countries are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy,Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

Barclays US Aggregate Bond Index: The Barclays U.S. Aggregate Bond Index is a comprehensive measure of the U.S. investment-grade, fixed-rate, taxable bond marketrepresenting U.S. Treasury and agency bonds, corporate debt, mortgage-backed securities, commercial mortgage-backed securities, and asset-backed securities.

JPMorgan EMBI Global Dvf'd TR Index: The JPMorgan EMBI Global Diversified Total Return Index consists of USD-denominated sovereign and quasi-sovereign bonds issuedby emerging markets, which are defined according to world-bank-defined per capita income brackets and each country's debt restructuring history. The index uses a methodologyto distribute weights more evenly than a traditional market-cap weighted index.

Consumer Price Index + 4%: The Consumer Price Index is a national inflationary indicator that measures the change in the cost of a fixed basked of products and services,including housing, electricity, food, and transportation. The 4% represents the premium above the rate of inflation that the Plan's real return composite targets to achieve.

All Asset Custom Index: The All Asset Custom Index is an equal-weighted hybrid of 8 core indices created independently by RVK specifically for PIMCO’s All Asset strategies.

NCREIF ODCE Index: The National Council of Real Estate Investment Fiduciaries Open-End Diversified Core Equity Fund Index is a compilation of the quarterly performance of26 open-end commingled real estate funds, all employing a core investment strategy.

HFN Long/Short Equity Index (Net): The HedgeFund.Net Long/Short Equity Index includes funds that typically buy equity securities with the expectation they will go up inprice and sell short equity securities with the expectation they will decline in price. Funds may either be “net long” or “net short” and may change their net position frequently.The basic belief

ARS Custom Benchmark: The ARS Custom Benchmark is calculated monthly using beginning of month investment weights applied to each corresponding primary benchmarkreturn from August 2014 forward. Performance prior to that consists of the HFRI FOF Comp Index.

HFRI FOF Comp Index: The Hedge Fund Research, Inc. Fund of Funds Composite Index measures the performance of fund of funds who invest with multiple managers throughfunds or managed accounts. The strategy designs a diversified portfolio of managers with the objective of significantly lowering the risk (volatility) of investing with an individualmanager.

HFN Multi-Strat Index (Net): The HFN Multi-Strat Index index includes funds that run several different strategies in-house that contribute to the total performance of the fund. Amulti-strategy product may consist of one or a number of managers simultaneously operating, for example, a distressed debt portfolio, merger-arbitrage, convertible arbitrage andlong/short equity strategies for the same fund.

BofA ML 3 Mo US T-Bill Index: The BofA Merrill Lynch 3-Month T-Bill Index measures the performance of newly issued 90-day Treasury bills.

Open-ended real estate funds may generate income through rental agreements of high quality, well leased properties. Debt interest maybe be gained via the purchase of wholemortgages or portions of mortgages and other real estate debt (e.g. commercial mortgage backed securities, or mortgage backed securities). Open-ended commingled fundstypically provide quarterly liquidity, subject to certain conditions and possible redemption queues.

Closed-ended real estate investment properties can vary by quality, occupancy, leverage, and income. Closed-ended funds are considered higher risk due to generally higher levels of leverage and the potential of developments, improvements or re-positioning efforts not being successful. Closed-ended funds are typically less liquid investments due to

a required commitment period.

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Objectives

Maintain or reduce the combined (employer plus employee) contribution rate of the System over time.

Progress toward a 100%, or higher, funding of the System's Pension Benefit Obligation over time.

Within the framework of prudent risk limitations, the minimum investment objective is to achieve an average long-term total rate of return which satisfies the actuarial

assumed rate of return. The actuarial rate of return is set at 8.0%.

The System shall also strive to achieve investment performance that exceeds the rate of inflation over time thereby providing a real rate of return.

The System's assets shall earn a sufficient total rate of return over time to meet all benefit and expense obligations.

Asset Allocation Strategy

The Board of Trustees recognizes that the most important determinant of long-term return and volatility is the asset allocation decision. The System's asset allocation policy isintended to reflect, and be consistent with, the return objective and risk tolerance expressed in this Investment Policy Statement. It is designed to provide the highest probability of meeting or exceeding the System's objectives at a controlled level of risk and liquidity that is acceptable to the Board. In establishing its risk tolerance, the Board considers itsability to withstand short and intermediate-term volatility in investment performance and fluctuations in the financial condition of the fund. It will be the Board's policy to review theappropriateness of the asset allocation strategy at least annually.

Distinction of Board Responsibilities

The Board of Trustees has the responsibility of establishing and maintaining broad policies and objectives for all aspects of the System's operation. The Board is responsible for prudent investment and expenditure of the System's assets. Specifically with regard to investments, the Board takes action on recommendations that come from its InvestmentCommittee, Investment Consultant and Staff. The Board may also originate its own agenda items

Rebalancing

COPERS' staff will have the responsibility of assessing, on a quarterly basis, whether an asset class or investment manager requires rebalancing and undertaking thatrebalancing if necessary. Any necessary rebalancing will take place no later than 45 days after each quarter's end.

City of Phoenix Employees' Retirement SystemSummary of Investment Policy

As of June 30, 2015

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Disclaimer of Warranties and Limitation of Liability - This document was prepared by RVK, Inc. (RVK) and may include information and data from some or all of the following sources: client staff; custodian banks; investment managers; specialty investment consultants; actuaries; plan administrators/record-keepers; index providers; as well as other third-party sources as directed by the client or as we believe necessary or appropriate. RVK has taken reasonable care to ensure the accuracy of the information or data, but makes no warranties and disclaims responsibility for the accuracy or completeness of information or data provided or methodologies employed by any external source. This document is provided for the client’s internal use only and does not constitute a recommendation by RVK or an offer of, or a solicitation for, any particular security and it is not intended to convey any guarantees as to the future performance of the investment products, asset classes, or capital markets.

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