Retirement Commission - Minutes - 05/27/2020

WATERFORD RETIREMENT COMMISSION
MEETING MINUTES — REMOTE ACCESS
WEDNESDAY, May 27, 2020, 5:00PM
Members Present: Susan Driscoll, Richard Muckle, Bruce Miller
Members Absent: _ First Selectman Robert Brule, William Auwood, Kevin Petchark
Sy
%
and Marcia Benvenuti ‘
ES :OlKY 82 AYH 0202
Staff Present: Kim Allen, Finance Director, Maryellen McConnell, Secretary
Others: Devon Frances of Fiduciary Investment Advisors, LLC; John
Sheehan
1. Call to Order.
An establishment of a quorum and call to order was at 7:06 p.m.
2. Quarterly update presentation by Devon Frances of Fiduciary Investment
Advisors, LLC
Please see attached First Quarter Report from FIA, LLC.
3. Approval of meeting minutes from January 8, 2020 meeting and February 11,
2020, Special Meeting minutes.
Motion by Richard Muckle, seconded by Bruce Miller, to approve the minutes
from January 8, 2020.
VOTE: Unanimous Motion: Passed
Motion by Richard Muckle, seconded by Bruce Miller, to approve the minutes
from February 11, 2020.
VOTE: Unanimous Motion: Passed
4. New Business.
Brief discussion on scheduling future meeting dates and description of
Commission’s Annual Report for FY 18-19 delivered to Board of Finance in
February

Retirement Commission
Regular Meeting 5/27/2020
- Page 2
5. Adjournment
There being no further business to come before this Commission, motion made
by Richard Muckle, seconded by Bruce Miller to adjourn at 6:07 pm.
VOTE: Unanimous Motion: Passed
Respectfully submitted,
Susan Driscoll Maryellen
Chair Recording Secretary

Be FIDUCIARY
INVESTMENT ADVISORS
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Town of Waterford Pension and OPEB Plans
Quarterly Investment Review - First Quarter 2020
One Hundred Northfield Drive, Windsor, CT 06095 Toll Free:866.466.9412 www.fiallc.com

Important Disclosure Information: Past performance may not be indicative
of future results. Account information has been compiled solely by
Fiduciary Investment Advisors, LLC, has not been independently verified,
and does not reflect the impact of taxes on non-qualified accounts. In
preparing this report, Fiduciary Investment Advisors, LLC has relied upon
information provided by third party sources. A copy of our current
written disclosure statement discussing our advisory services and fees
continues to remain available for your review upon request. Historical
performance results for investment indices and/or categories have been
provided for general comparison purposes only, and generally do not reflect
the deduction of transaction and/or custodial charges, the deduction of an
investment management fee, nor the impact of taxes, the incurrence of
which would have the effect of decreasing historical performance results. It
should not be assumed that your account holdings correspond directly to
any comparative indices.

INVESTMENT ADVISORS
& ASSOCIATES, LLC. . ; ; ;
FIDUCIARY INVESTMENT ADVISORS St Halegie thinking. Customized solutions.
Firm Update
On April 1, 2020, Fiduciary Investment Advisors, LLC (“FIA”) joined forces with peer firm DiMeo
Schneider & Associates, L.L.C., as planned.
® This combination will positively impact our clients and associates in many ways:
¥ Our manager research team has grown from nine individuals to 21.
¥ Our operational and technological infrastructure will be expanded with this combination.
v Our firm presence expands to seven offices nationwide, with clients in 47 states. This offers not only potentially improved
access for our clients, but increased opportunities for our associates.
¥ Our size and scale in negotiations on behalf of clients will be increased, with approximately $200B* in assets under
advisement across the two firms.
® The newly combined firm will be co-led by Mark Wetzel, President, and Bob DiMeo, CEO. The firm will be
managed by an Executive Committee, comprised of representatives from both FIA and DiMeo Schneider.
# In the near term, our clients will experience few changes.
® Over the course of the next 12-18 months, we will work to re-brand the firm (our new name will be DiMeo
Schneider & Associates) and will integrate the two firms thoughtfully and methodically, incorporating the
collective best practices of both firms.
*As of 12/31/19

—
FIDUCIARY
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Strategic thinking. Customized solutions,
Table of Contents

; FIDUCIARY
96) INVESTMENT ADVISORS
Strategic thinking. Customized solutions.
Section 1
Fiduciary Governance Calendar

FIDUCIARY
INVESTMENT ADVISORS
Defined Benefit
F d U Cl a ry G overnance Ca le Nn d ar Strategic thinking. Customized solutions,
1 Quarter: Fee Focus 24 Quarter: Practice & Policy Focus
C] Investment review CJ Investment review
[) Administrative fee review | C] Investment policy statement review
CL] Portfolio expense analysis CJ Legislative update
4th Quarter: Pension Landscape 3'4 Quarter: Asset/Liability Focus
C] Investment review CJ Investment review
CJ Pension landscape update ‘ (] Annual actuarial review*
(2 Market environment overview C! Asset Allocation review
* Timing of actuarial and liability review dependent on client’s individual plan and /or fiscal year and actuarial input.

FIDUCIARY
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Procedural Prudence — Fee Focus
Prudence focuses on the process, not results, surrounding fiduciary decision-making.
Fiduciary Best
Practice
# Plan fiduciaries have a responsibility to understand fees and services associated with managing the plan,
and to ensure that they are reasonable
= Documenting the process is considered a best practice for fiduciaries
= Even if not subject to ERISA, voluntarily following “ERISA-like” practices is considered prudent

Detailed Fee Review
FIDUCIARY S
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Weighted Average Investment Management Fee
Metropolitan West Total Return Fund Plan 0.37% 35.0% 25.0%
BlackRock Strategic Income Opportunities Fund K 0.74% 15.0% 10.0%
Fidelity Total Market Index Fund 0.015% 27.5% 33.3%
American Funds EuroPacific Growth R6 0.49% 22.5% 26.8%
Principal Diversified Real Asset R6 0.80% . N/A 5.0%
0.35% 0.34%
Wells Fargo Custody Fee
0.05% on all invested assets
Per account fee of $750,
$10,000 annual minimum
FIA Consulting Fee
0.75% on first S2mm; 0.50% thereafter
The estimated annual custody fee represents the base fee and includes asset based, account based and line-item fees, where applicable. The estimate does not include applicable fees for transactions,
trade settlement and/or wire transfers. Please refer to your custody agreement for a complete description of applicable fees and expenses.
Fees for fund of funds are shown at the fund of fund level and do not include fees charged by underlying investment managers/funds.
DISCLOSURE: The figures on this page have been obtained from sources we deem to be reliable,
are as of 12/31/19.
including Morningstar. FIA has not independently verified this information. Custody and consulting fees

} FIDUCIARY
Actuarial Review
. INVESTMENT ADVISORS
Town of Wate rfo rd = Pen sion Plan Strategic thinking. Customized solutions.
Source: Hooker & Holcombe, 2019 Valuation Report

FIDUCIARY
| A INVESTMENT ADVISORS
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Wells Fargo & Principal Custody Transition Update
Timeline:
+ December 2019 — January 2020: Service continuity packets and consent letters will be sent to clients
> Clients have 6 months to complete and return documentation.
+ May 2021: System integration expected to be complete
+ Late 2021: Migration of client assets
> Asset migration will occur on a bank holiday weekend in order to minimize disruption.
Contracts:
* Principal Financial will accept all existing contracts in place with Wells Fargo Institutional Retirement Trust clients.
> Importantly, this will include continuation of all current fee schedules.
> The only change in the documentation will be the legal entity of the contract issuer (from Wells Fargo to Principal).
Benefit Payments:
- For clients who use Wells Fargo Institutional Retirement Trust to issue benefit payments, an Institutional Retirement Trust
representative will proactively reach out to provide guidance and assistance with regard to the change in payment services.
> Wells Fargo/Principal is willing and able to prepare all beneficiary communications to inform beneficiaries of the
change.
> Clients who wish to maintain control over beneficiary communications rather than having Wells Fargo/Principal handle
communications may do so. Wells Fargo/Principal will be as involved (or uninvolved) in the communication efforts as
each client desires.
10

FIDUCIARY
an INVESTMENT ADVISORS
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Section 2
Capital Markets Overview
11

Economic & Market Conditions
: FIDUCIARY"
INVESTMENT ADVISORS
Strategic thinking. Customized solutions,
The COVID-19 health crisis has completely altered the dialogue surrounding the global economy, and a recession now looms.
An extensive and, at times, indiscriminate re-rating of the capital markets transpired in the quarter, given fully doused investor risk appetite.
Authorities swiftly responded with unprecedented amounts of fiscal and monetary stimulus in an effort to quell the economic impact of the virus.
Global Real GDP Growth and Estimates, % Change Year Ago
Year-To-Date Equity Performance (12/31/19 = 100)
5 419. 12312019 - 03/31/2020
wee S&P 500 === MSCIAC World ex USA
4 105
100
3 La
<tc 95
2 / 90 Equity markets fell sharply as investors
{ 85 reacted to the potential impact of the
‘\ f 80. coronavirus on the global economy. The S&P
Oo — s-Jan base | 500 fell into bear market territory (a move of
««eFeb base SN 4 %% -20% or more from its peak) in just 16 trading n\n eb oe
“1+ . nasa 70 days. ~*
1 ePandemic ¥
-2 °°
60 ~! :
19Q1 19Q3 20Q1 20Q3 2101 2103 v6 13 1/20 127) 2B ANNO NT «= 224 32s 3/3/23. ~—-3/30
Moody’s Analytics FactSet, S&P, MSCI
se aif ALA Weekly Change In The Fed's Balance Sheet ($billions)
Key Provisions of the $2+- trillion CARES Act (Sbillions) soo_. Week Ending 92712020
Corporate COVID-19
500;
Global
400 Financial The U.S. Federal Reserve has reacted
300. Crisis more swiftly and aggressively to provide
Lending for Distressed liquidity in the market compared to the
Companies | 200 global financial crisis in 2008.
ne 100
Tax Deferrals _
Payden & Rygel, PIMCO
D :
100
‘07 43
05
FactSet, U.S. Federal Reserve
‘06 ‘08 ‘09 10 44 12 14 45 16 7 418 19
12

Index Results
6.
(7.0)
AED,
FIDUCIARY
INVESTMENT ADVISORS
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§ ae
FTSE NAREIT Equity REITs Index
S&P 500 (19.6) (19.6) 5.1 6.7 10.5
Russell 1000 (20.2) (20.2} (8.0) 4.6 6.2 10.4
Russell 1000 Value (26.7) (26.7) (17.2) (2.2) 1.9 77
Russell 1000 Growth (14.1) (14.1) 0.9 11.3 10.4 13.0
Russell Mid Cap (27.1) (27.1) (18.3) (0.8) 18 8.8
Russell Mid Cap Value (31.7) (31.7) (24.1) (6.0) (0.8) 7.2
Russell Mid Cap Growth (20.0) (20.0) (9.4) 6.5 5.6 10.9
Russell 2000 (30.6) (30.6) (24.0) (4.6) (0.2) 6.9
Russell 2000 Value (35.7) (35.7) (29.6) (9.5) (2.4) 4.8
Russell 2000 Growth (25.8) (25.8) (18.6) 0.1 1.7 8.9
Russell 3000 (20.9) (20.9) (9.1) 4.0 5.8 10.1
(27.3) (27.3) (21.3) (3.1) (0.3) 7.4
(15.6)
MSCI ACWI ex-US (23.4) (23.4) (2.0) (0.6) 2.1
MSCI EAFE (22.8) (22.8) (14.4) (1.8) (0.6) 2.7
MSCI EAFE Value (28.2) (28.2) (22.8) (6.6) (3.8) 0.6
MSCI EAFE Growth (17.5) (17.5) (5.8) 3.0 2.5 47
MSCI EAFE Small Cap (27.5) (27.5) (18.1) (2.9) 1.0 4.8
MSCI EM (Emerging Markets) (23.6) (23.6) (1.7.7) (1.6) (0.4) 0.7
Barclays U.S. Aggregate Bond
3.1
4.8
3.9
3.1 8.9 3.4
Barclays U.S. Gov/Credit Bond 3.4 3.4 9.8 5.2 3.5 41
Barclays Gov/Credit Long Bond 6.2 6.2 19.3 9.7 6.0 8.1
Barclays U.S. Corp High Yield (12.7} (12.7) (6.9) 0.8 2.8 5.6
Barclays Municipal Bond (0.6) (0.6) 3.8 4.0 3.2 4.1
Barclays U.S. TIPS 1.7 1.7 6.8 3.5 2.7 3.5
BofA Merrill 3-Month T-Bill 0.6 0.6 2.3 1.8 1.2 0.6
a BA DITION D AUAR 5 Ae Ap Ab a VEAR
Bloomberg Commodity tndex (23.3) (23.3) (22.3) (8.6) (7.8) (6.7)
HFR! Fund of Funds Index (6.0) (6.0) (2.6) 1.0 0.6 2.1
NCREIF Property Index (12/31/2019) 1.6 6.4 6.4 6.7 8.3 10.2
CPI (12/31/2019) 0.7 2.3 2.3 2.1 1.8 18
Sources: Morningstar Direct, Standard & Poor’s, Russell, FTSE, MSCI, Barclays Capital, BofA Merrill Lynch, Bloomberg, HFRI, NCREIF. Data as of 03/31/2020 unless otherwise noted.
13

Equity & Fixed Income Review
U.S. Equity Size and Style Returns
QTR 1-Year
Value Blend Growth Value Blend Growth
26.7 4a Large ' in ee
| 2 Mid 24.1
235.7 | -306 | -258 PRIM -29.6 | 240 | -18.6
In the wake of the coronavirus pandemic, U.S. equity markets fell sharply and moved into bear market
territory for the first time since the global financial crisis. Concern over the impact of shutting down
non-essential parts of the economy was the driving force. Large-cap companies outpaced their small-
cap counterparts. Growth stocks fared better than value stocks, as energy and financials were among
the worst performing sectors.
International Equity Size and Region Returns (USD)
QTR 1-Year
Mid Large Small Mid
Small
cas |
international markets were not immune to the coronavirus impact as both developed and emerging
markets saw sharp declines, with developed regions holding up better than emerging markets. A
strengthening U.S. dollar was glso a headwind for the U.S. dollar-based investor, rising against most
major currencies except for the Japanese yen, as investors favored this “safe haven” currency.
Fixed Income Term and Quality Returns (USD)
QTR 1-Year
Interm Long Short Interm
Short Long
2d 52 | 206 (eras
45 Ferme 18 27 9.6
No asset class avoided the market volatility, as interest rates and corporate credit spreads both saw
large movements during the period. Government bonds produced positive returns, while spread
sectors, such_as corporate bonds, were generally negative. Both investment grade and high yield
corporate spreads touched levels not seen since the global financial crisis in 2008-2009, driven in large
part by the uncertainty surrounding the potential impact of the coronavirus on company earnings.
20.0 5
10.0 +
0.0 4
-10.0 4
-20.0 4
30.0 4
-40.0 +
50.0 4
-60.0 -
0.0 7
-10.0
20.0 |
-30.0 +4
-40.0 |
-50.0 4
~60.0 ~
15.0 +
-15.0 °
FIDUCIARY
INVESTMENT ADVISORS
Strategic thinking. Customized solutions.
S&P 500 Sector Returns
“50.89 4
Cons, Cons. Energy Financials Health Industrials Info. Materials Real Telecom. Utilities S&P 500
Disc. Staples Care Tech. Estate
BOQTR 1-year
MSCI Country Results 1Q 2020
-10.3 -10.2
-17.3°168
28.9976 -25.3 -27.0
-50.2
United France Germany Japan Brazil Russia India China
Kingdom
@local @uSD
Fixed Income Returns and Yields (%)
12.7
BC Agg BC Gov/Crd BC US Cor HY BC Muni
BC USTIPS ML3MT-Bill FISE WGBI JPM EMBI+
HQTR %1-Year Hi Yield
Sources: Morningstar Direct, FactSet, Standard & Poor’s, Russell, MSCI, Barclays Capital, Citigroup, BofA Merrill Lynch, Credit Suisse, JPMorgan. Data as of March 31, 2020 unless
otherwise noted. The performance grids above are based on select Russell, MSCI and Barclays Capital indexes.
14

FIDUCIARY
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Equity Market Perspectives
Rolling 5-Year Relative Performance - Russell 2000 vs. S&P 500 (%)
Rolling 5-Year Relative Performance - MSCI EM vs. MSCI EAFE (%)
15 20
10 Russell 2000 outperforms
15 MSCI EM outperforms
|
my
° v
| 0 : LN,
S&P 500 outperforms |
-15 5
MSCI EAFE outperforms
-20 / -10
SERSRSSSSRASSSSSgsasane CESSSSSSSS asa ss yyengaa
@SEGESS Swecseestegryvrirgya Se Se8SES hese geet eyegizgriud
eS Pe ese TSFSFSER SESE LES | SoS SSeS SSFP ERFSE RSS EES
Performance data from MPI Stylus. Data from 1/1/1979-3/31/2020. _Petformance data from
Stylus. Data from 1/1/1999-3/31/2020.
S&P Shiller PE Ratio - Since 1900
50 .. 01/1900 - 03/31/2020
45. U.S. equity valuations moved lower in March following the market
selloff. Ona cyclically adjusted earnings basis, the S&P 500 has
40 ~ moved below its 20-year average.
35: | 20 Yr Avg|
30 |
25
20.
5.
1900 1910
1920 1 930 1940 1950 1960
FactSet, S&P
1970 1980 1990 2000 2010
2020
15

: FIDUCIARY
INVESTMENT ADVISORS
Strategic thinking. Customized solutions.
Fixed Income Market Perspectives
U.S. Treasury Curve
. . 3m 2yr yr 10yr_—3 yr .
United States Treasury Yield Curve 03/31/20 0.11 023 037 0.70 1.35 ie Dollar ens Index (DXY)
3.0 03/81/2020 - eld 12/31/19 1.55 158 169 1.92 2.39 | 194... 09/29/2019 - 03/31/2020
_ 19311079- Vlg 03/31/19 240 2.27 2.23241 2.81 Select Q1 Currency Returns vs. U.S. Dollar
— 03/29/2019 - Yield 103" Japanese yen 0.7%
2.5 402. Euro -2.3%
a British pound -6.4%
20 ee 101 -- Russian ruble -20.5%
en 400 Brazilian peso -22.4%
=~ veer j - yg
g een Mexican peso 29.5%
o
2
Interest rates moved sharply lower 98
10° during the quarter, with the 10- 97
year Treasury yield touching all- 96
0.5- ti id- .
time lows mid-March. 95 The U.S. dollar strengthened against most
major currencies during the first quarter.
0.0 : 94 :
IM3M6M1Y 2Y 3Y 5Y 7Y 10Y¥ 30Y Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20
FactSet, U.S. Treasury 
FactSet
Bloomberg Barclays Option Adjusted Spreads (12/29/2006 - 03/31/2020) High Yield Spreads and Subsequent Returns
700 U.S. Corporate Investment Grade
DECEMBER 2008
= 600 : ‘Global Financtal Clete
= an : feak Spread, 2069 bps
5 500 y Renan: +20 2225
ro 1) Retinn 157 61%
a 400 MARCH 23, 2020
® 300 ml Nove Coronas Pandewie
a \ _ 272 Curent Spread 1082 bes
wp 200 a ee of A
S 100 pul wel rene pete Nn petted at } ne
Q i
. a
> 600 _U-S: Corporate High Yield Corporate credit spreads 3
2
> widened to levels not seen 3
© 2,000 ~~. since the global financial crisis. &
& 1,500 fh :
8 1,000 | \ i
al wy an BBO
a Ag ape, a SPs
2 500. ay ee en meee aad AR
i @ -
9 i 2001 203 2008 2007 2009 2014 2013 21s. 2017 2018) «2020
07 «2 08 S09 101141243 141516 1701819
Eaton Vance, ICE BofA US High Yield Index as of March 24, 2020.
FactSet, Bloomberg Barclays
16

Staying the Course
S&P 500 Annualized Price Return & Growth of $1,000
(1950-2019)
10.0%
9.0%
7.8%
8.0%
7.0%
6.0%
4.6%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Charles Schwab
S&P 500 Ex Top 10 Days Ex Top 20 Days
Ex Top 30 Days Ex Top 40 Days
* Timing the market is difficult and often detrimental to long-term performance;
missing just the top 10 days reduces annualized returns by over 1%, or 2x less in
dollars.
* Strong equity performance has regularly been achieved during bear markets.
* In March, the S&P 500 experienced
four new top 20 days, all after its peak
on February 19°.
Date Daily Price Return
3/24/2020 9.38%
3/13/2020 9.29%
3/26/2020 6.24%
3/17/2020 6.00%
FactSet, S&P
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Top 20 S&P 500 PR Days (1950-2019)
Charles Schwab, Bloomberg. Bull and bear markets
classified using rounded +/-20% changes in S&P 500.
Note: March 2000-October 2002 and October 2007-
March 2009 are considered bear markets. Past
performance is no indication of future results.
17

FIDUCIARY
INVESTMENT ADVISORS
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Annual Return and Max Drawdown/Gain of the S&P 500 Total Return Index (1971-2019)
Staying the Course (con.})
9070 @
50
>
©
ge * e ¢
: as res are eee le
3 ©
a a - j- @ a
_” Bil
e ¢ ot ¢
-10 Sree = ean © len nae ae
©
e
-30 © ®
® ®
-50 . 4
GAN mM tnNnwOoOnraoanauxutnnmnmnt nwoRADGANMATHMORABDOANMTHOBAGMT SOA NMTHNH ORDA
Ne n~ RR RNR RR OBO Ow OH WOHMDDWDHDADAMNAAARAAAARAARSEETePTEeeC eee eC evr ae tA dts it dnd At oa
KDRDAHANHAAARAMAARAATGDAAARARAARAARARAARARAAAAARAARTOGCCSCCTC CCC Ce eo coeceoeeceeece ge
Hodi dtd dn Hee tK HTH A THA BHA eA eH Ae ATH TA A TPA TD ANNNNNNNNNNNN NNN NNN
ame S&P 500 TR USD ow = = Avg Return @ Max Drawdown =— — — Avg Max Drawdown @ Max Gain wo oo « Ave Max Gain
The S&P 500 has had an average calendar year return of 12.2% and a median calendar year return of 15.1%
The average max drawdown in a given calendar year was -12.2%, the average max gain was 23.8%
The S&P 500 had a positive return in 80% of the calendar years (39 of 49)
Source: Morningstar, FactSet. Data is from 1/1/1971 to 12/31/2019.
18

FIDUCIARY
INVESTMENT ADVISORS
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Bear Markets & The Virtue of Patience
Peak-to-Trough Declines
10.0%
0.0%
-10.0%
-20.0%
-30.0%-40.0% a 7 FY Pg wn
50.0% : ae
-60.0%
oma NOV-1980 Bear Market
= hug-1987 Bear Market » Jul-90 Bear Market
ssnneet SaQ-00 Bear Market wxmee= Oct-07 Bear Market cusea= Feb-20 Bear Market
# Months : start of hae Months
| toReah =. ||| After
| oe. Bear 2.
‘Starting st
| Bear s au ; M D Ree correc BeseMarkel!
The twelve-month period following a bear market
Source: DiMeo Schneider & Associates, Yahoo Finance has historically exhibited strong equity performance.
19

Investing Viewpoints
© Current Stance
© Previous Stance (date indicates when we last changed our stance)
Asset Allocation
FIDUCIARY
“263 INVESTMENT ADVISORS
Strategic thinking. Customized solutions.
Rationale
Fixed Income
Neutral
Equity
Equity
Neutral
International
Domestic
Qi ‘18
Neutral
Domestic Large Cap
Q2 ‘15
Domestic Value Neutral
Q3 ‘17
int’l Developed Neutral Emerging Mkts
Fixed Income
Neutral
Treasuries Credit
Q4 ‘19 :
Short Duration Neutral
Long Duration
Q4 ‘18
Despite the sharp re-rating of equities, rising economic uncertainty and the expectation for
persistent levels of elevated market volatility, with an acknowledgment of the volatility-
dampening profile of fixed income, informs our neutral stance between equity and fixed income.
The valuation advantage of non-U.S. stocks is tempered by the disparity of regional economic
data and the perceived ability for certain countries to more effectively counter the effects of the
pandemic. Ambiguity reigns as to what region(s) will best recover from the economic downturn.
Small cap equities hold a modest valuation advantage compared to their larger cap peers, and
the pronounced recent underperformance versus large cap stocks provides a potential
opportunity for mean reversion. However, the toolbox for larger companies to weather an
economic slowdown compared to smaller companies is more ample. As such, we remain neutral
on the capitalization front.
Value stocks continue to look more attractive than growth stocks across multiple valuation
metrics. Combined with a wide performance gap between the two asset classes over recent
years, the potential for a reversion to the mean remains elevated. Of note, value outpaced
growth in the twelve months following the market lows in both 2002 and 2009.
The economic impact from the coronavirus varies by region. While data from China is showing
some indication of turning for the better, other areas of emerging markets remain in an
unsettled state, as does much of the developed world. With no discernible valuation advantages
between the two, we maintain a neutral view.
Corporate credit spreads have widened to levels not seen since the global financial crisis in 2008-.
2009. A modest tilt into credit seems appropriate, given the attractive valuation levels, and
affords the opportunity to potentially capture a favorable return profile as the situation stabilizes
and the economy begins to recover.
Interest rates continue to hover at low levels around the world as central bank activity, the
deteriorating global economic backdrop, and a reduced near-term outlook for inflation have
driven rates down. Despite low base rates, we acknowledge that duration can serve as an
effective hedge alongside “risk” postures.
These viewpoints represent FIA’s general assessment of the highlighted capital markets comparisons over the next 18 months. These opinions are subject to modification as conditions in
the markets or forecasting periods change. Clients should utilize these rankings in conjunction with other considerations that may be relevant to their particular circumstances.
20

’ GES investmeNT apvisors
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Section 3
Pension Portfolio Review
21

Asset Allocation
Waterford Pension
As of March 31, 2020
BlackRock Strategic Income Opportunitie
estic Equity Composite
et Index F
Investments with a zero balance were held in the portfolio during the reporting period and will be removed once they no longer impact portfolio performance.
Asset Allocation weightings may not add up to 100% due to rounding.
192,724
77,012
127,848
6
103,264
22

Total Plan Performance Summary
Waterford Pension
As of March 31, 2020
Account Reconciliation
Pension Plan
Beginning Market Value
Net Contributions
Total Gain/Loss
Ending Market Value
600,897
-28,585
-65,083
507,230
564,680
-119,644
62,194
507,230
11/01/2016
90 Day U.S. Treasury Bill
Blmbg. Barc. U.S. Aggregate Index
Dow Jones U.S. Total Stock Market Index
MSCI AC World ex USA (Net)
ark Composition
0.00
50.00
27.50
22.50
Trailing Performance Summar
Pension Plan
Pension Blended Benchmark
Difference
11/01/2016
Calendar Y
Pension Plan
Pension Blended Benchmark
Difference
23

Manager Gain/Loss Summary
Waterford Pension
Quarter Ending March 31, 2020
Short Term Liquidity
Wells Fargo Government Money Market Fund
Total Short Term Liquidity
Fixed income
Metropolitan West Total Return Bond Pl
BlackRock Strategic Income Opportunities Fund K
Total Fixed Income
Domestic Equity
Fidelity® Total Market Index Fund
Total Domestic Equity
International Equity
American Funds EuroPacific Growth R6
Total International Equity
Pension Plan
Cash activity includes management fees paid externally.
35,747
35,747
188,471
81,777
270,248
161,779
161,779
133,124
133,124
600,897
-28,585
-28,585
-28,585
-780
-780
4,253
-4,765
-512
-33,931
-33,931
-29,860
-29,860
-65,083
6,382
6,382
192,724
77,012
269,736
127,848
127,848
103,264
103,264
507,230
24

Market Value and Flow Summary
Waterford Pension
Since Inception Ending March 31, 2020
565,216
Dec-2016
Jun-2017
Dec-2018
Jun-2019
Dec-2019
25

Estimated Fee Analysis
As of March 31, 2020
Metropolitan West Total Return Bond PI
BlackRock Strategic Income Opportunities Fund K
Fidelity® Total Market Index Fund
American Funds EuroPacific Growth R6
DISCLOSURE: The figures on this page have been obtained from sources we deem to be reliable, including Morningstar. FIA has not independently verified this
information.
26

TM, FIDUCIARY
(265 investTMENT ADVISORS
Section 4
OPEB Portfolio Review
27

FIDUCIARY
INVESTMENT ADVISORS
Strategic thinking. Customized solutions.
Waterford OPEB Portfolio Update
¢ 12/12/19: Received employer contribution of $208,613
> Given the substantial contribution that had been invested earlier in December 2019, the decision
was made to hold off on investing the contribution until mid-February to avoid concentrated
market risk
¢ 2/14/20: invested $199,000
* Remaining $9,613 allocated to cash equivalents, in order to provide sufficient liquidity to
cover fees and expenses.
° 3/12/20: Rebalanced portfolio
> Given the pronounced dislocation in the equity markets, the portfolio was rebalanced to trim
back the overweight in fixed income
¢ 5/8/20: initial purchase of PIMCO High Yield Fund
> The discretionary committee elected to initiate a 2% tactical position in PIMCO High Yield Fund
sourcing 1% from Metropolitan West Total Return Bond and 1% from Blackrock Strategic Income
Opportunities fund
28

Asset Allocation
Waterford OPEB
As of March 31, 2020
d
1,283,688
come Opportunities Fund K 468,963
osite. _
x Fund 1,821,426
Principal Diversified Real Asset R6 255,882
Investments with a zero balance were held in the portfolio during the reporting period and will be removed once they no tonger impact portfolio performance.
Asset Allocation weightings may not add up to 100% due to rounding.
29

Total Plan Performance Summary
Waterford OPEB
As of March 31, 2020
Account Reconciliation
OPEB Plan
Beginning Market Value 6,172,816
Net Contributions ~1,839
Total Gain/Loss -883,198
Ending Market Value 5,287,778
03/01/2017
1,164,759
4,210,406
-87,387
5,287,778
90 Day U.S. Treasury Bill 0.00
Blmbg. Barc. U.S. Aggregate Index 35.00
Dow Jones U.S. Total Stock Market Index 33.25
MSCI AC World ex USA (Net} 26.75
Diversified Real Asset Blended Index 5.00
Trailing Performance Summa
OPEB Plan -14.3
OPEB Blended Benchmark -13.5
Difference -0.8
03/01/2017
Calendar Year Performance Summar
OPEB Plan
OPEB Blended Benchmark
Difference
30

Manager Gain/Loss Summary
Waterford OPEB
Quarter Ending March 31, 2020
Short Term Liquidity
Wells Fargo Government Money Market Fund
Total Short Term Liquidity
Fixed Income
Metropolitan West Total Return Bond PI
BlackRock Strategic Income Opportunities Fund K
Total Fixed Income
Domestic Equity
Fidelity® Total Market Index Fund
Total Domestic Equity
International Equity
American Funds EuroPacific Growth R6
Total International Equity
Alternatives
Principal Diversified Real Asset R6
Total Alternatives
OPEB Plan
Cash activity includes management fees paid externally.
222,866
222,866
1,450,988
584,735
2,035,724
1,995,495
1,995,495
1,619,492
1,619,492
299,238
299,238
6,172,816
-200,839
-200,839
-200,000
-85,000
-285,000
260,000
260,000
209,000
209,000
15,000
15,000
-1,839
-8,422
-8,422
32,699
-30,773
1,927
-434,070
-434,070
-384,277
-384,277
-58,357
-58,357
-883,198
13,605
13,605
1,283,688
468,963
1,752,650
1,821,426
1,821,426
1,444,215
1,444,215
255,882
255,882
5,287,778
31

Market Value & Flow Summary
Waterford OPEB
Since Inception Ending March 31, 2020
Jan-2017 1,426,010
Jun-2017
Dec-2017
‘Mar-20-
Jun-2018
i
3,976,557
902,669
5,068,254
Dec-2019
32

Estimated Fee Analysis
As of March 31, 2020
DISCLOSURE: The figures on this page have been obtained from sources we deem to be reliable, including Morningstar. FIA has not independently verified this
information.
Metropolitan West Total Return Bond Pl
BlackRock Strategic Income Opportunities Fund K
Fidelity® Total Market Index Fund
American Funds EuroPacific Growth R6
al 6
incipal Diversified
33

FIDUCIARY
Ala INVESTMENT ADVISORS
Strategic thinking. Customized solutions.
Section 5
Manager Review
34

Manager Performance Overview
As of March 31, 2020
Wells Fargo Government Money Market Fund
90 Day U.S. Treasury Bill
0.3 1.8 1.6 N/A 1.4
0.6 2.3 1.8 N/A 1.6
11/01/2016
si
3.1 8.9 4.8 N/A 3.8
Blmbg. Bare. U.S. Aggregate Index
Metropolitan West Total Return Bond Pl 2.3 (16) 8.3 (9) 4.7 (9) N/A 3.8 (12) 11/01/2016
Bimbg. Barc. U.S. Aggregate Index 3.1 8.9 4.8 N/A 3.8
IM U.S. Broad Market Core+ Fixed Income (MF) Median -0.9 47 3.4 N/A 2.8
BlackRock Strategic Income Opportunities Fund K -5.8 (32) -0.9 (22) N/A N/A 0.7 (24) 06/01/2018
Blmbg. Barc. U.S. Aggregate Index 3.1 8.9 N/A N/A 7.3
Libor (3 month) 0.5 2.4 N/A N/A 2.4
IM Alternative Credit Focus (MF) Median -9.0 5.1 N/A N/A -1.9
-21.0 -9.3 4.0 N/A 7.2
Domestic Equity Benchmark
Fidelity® Total Market Index Fund -21.0 (42) -9.3 (33) N/A N/A -9.3 (33) 04/01/2019
Dow Jones U.S. Total Stock Market Index -21.0 -9.3 N/A N/A -9.3
-21.7 -11.7 N/A N/A -11.7
IM U.S. Multi-Cap Core Equity (MF) Median
-23.4 15.6 2.0
05
American Funds EuroPacific Growth R6 -22.4 (30) -12.7 (24) 0.3 (8) N/A 2.3 (9) 11/01/2016
MSCI AC World ex USA (Net) -23.4 -15.6 -2.0 N/A 0.5
IM international Large Cap Core Equity (MF) Median -24.5 -17.2 -3.6 N/A -1.0
Returns for periods less than one year are not annualized. Returns are net of fees unless otherwise noted.
35

Manager Performance Overview
As of March 31, 2020
Altern /
‘Diversified Real Asset Blended Index -18.9 N/A N/A N/A 45.7
Principal Diversified Real Asset R6 -19.5 (77) N/A N/A N/A -15.8 (78) 10/01/2019
Diversified Real Asset Blended Index -18.9 N/A N/A N/A -15.7
IM Flexible Portfolio (MF) Median -15.3 N/A N/A N/A -11.4
The inception date expressed on the Manager Performance Overview page(s) represents the first day of the first full month following the purchase of the investment. Performance figures shown at
the fund level begin on this inception date. Inception dates for asset class composites reflect the start date at which these returns could be calculated using historical and existing system
capabilities and may vary from the inception dates of underlying component strategies. Composite performance includes all funds held in the composite since inception.
Returns are net of fees unless otherwise stated. Mutual fund performance stated above may differ slightly from the current share class’ historical performance due to share class exchanges.
Returns for periods less than one year are not annualized. Returns are net of fees unless otherwise noted.
36

Manager Commentary
As of March 31, 2020
Fixed Income
Metropolitan West Total Return Bond Pl
(MWTSX)
Maintain
1Q 2020 — The MetWest Total Return Bond Fund produced a positive return during the first quarter but trailed
the Bloomberg Barclays U.S. Aggregate Bond Index. Despite trailing the index, the strategy landed in the top
half of its peer group. Fixed income markets experienced significant market volatility in the wake of the
coronavirus pandemic. Treasuries were one of the top performing areas of the market while riskier segments,
such as corporate bonds and securitized assets, underperformed. The Federal Reserve cut its target rate to 0-
0.25%, sending interest rates lower for the period. The portfolio’s more conservative posture, which had been d
headwind relative to peers over recent years, proved to be beneficial during the market selloff. From an issue
standpoint, the strategy’s non-agency MBS positions came under pressure as did some of the corporate issues.
Emerging markets was also an area of weakness. The team was active throughout the quarter both from a
sector allocation and duration standpoint. The strategy was underweight corporate spread duration heading
into the crisis, but as spreads widened the team added to the corporate exposure and ended the quarter
overweight. The team also added a small high yield exposure as valuations became more attractive. Duration
began the quarter neutral to the benchmark, but ultimately ended the quarter roughly 0.5 years shorter than
the index.
BlackRock Strategic Income Opportunities
Fund K (BSIKX)
Maintain
1Q, 2020 — The BlackRock Strategic Income Opportunities strategy produced a negative absolute return during
the first quarter, underperforming the broader fixed income market. It has been a period of heightened
volatility in the wake of the coronavirus pandemic as investors grapple with the impact the economic
shutdown will have on company financials. As a result, spread sectors generally sold off and underperformed
U.S. Treasuries, the traditional “safe-haven” asset. Interest rates also moved lower on the back of the Fed’s
decision to cut its target rate to 0-0.25% and expectations for subdued inflation. The team at BlackRock had
been reducing risk in the portfolio early in the year, but a lingering preference for spread sectors over
Treasuries proved to be a headwind. Notable detractors included exposures to structured products, European
and Asian credit, and emerging markets. The team has begun to take advantage of recent dislocations in the
market, adding to areas such as investment grade credit, high quality securitized, and U.S. TIPS, while reducing
exposure to select areas of emerging markets and high yield. The movements have been beneficial thus far as
the portfolio has outpaced the broader fixed income in the late March market rebound. Duration in the
portfolio is just under three years as of the quarter end.
Domestic Equity
Fidelity® Total Market Index Fund (FSKAX}
Maintain
In accordance with its objective, the Fidelity Total Market Index Fund sufficiently tracked its index during the
quarter.
37

Manager Commentary
As of March 31, 2020
International Equity
American Funds EuroPacific Growth R6
(RERGX)
Maintain
1Q 2020 — The American Funds EuroPacific Growth Fund fell during the first quarter but outperformed its
benchmark, the MSCI ACWI ex-US. Global stocks endured a historic selloff in the period as the global economy
was brought a virtual standstill by the escalating COVID-19 pandemic. The fund’s bias towards growth stocks in
recent years continued to aid relative performance as quality growth stocks performed best in the current
market environment. Specifically, the fund’s favorable sector positioning added value from overweight
allocations to healthcare and information technology stocks as well as an underweight exposure to the
economically sensitive financials sector. In addition, stock selection in the consumer discretionary and utilities
sectors contributed to returns, and the fund’s sizeable cash position (8%) was a significant contributor to
relative performance amid the market’s plunge. Conversely, stock selection in the industrials sector, most
notably the fund’s exposure to the aerospace industry, was the largest detractor as manufacturers, suppliers,
and airlines were crippled by the near halt in global travel. An underweight exposure to the defensive
consumer staples sector and an underweight to mining companies were other notable detractors.
Alternatives
Principal Diversified Real Asset R6 (PDARX)
Maintain
10,2020 — The Principal Diversified Real Assets Fund declined during the first quarter and underperformed its
blended index. Weakness in real assets reflected the dual impact of the headwinds brought on from COVID-19
as well as turmoil in the oil markets. Oil fell dramatically, as both demand and supply shocks sent prices to their
lowest levels since 2002. While resource equities and commodities were sharply lower in the period, U.S. TIPS
were able to generate a modest gain as lower inflation expectations were counteracted by a drop in nominal
yields. The most notable detractor in the period was the portfolio’s allocation to floating rate securities, which
meaningfully underperformed the broader real return component of the portfolio. The natural resources
sleeve also hampered relative performance, albeit to a much lesser extent than floating rate. Other areas of
the portfolio positively contributed, with particularly strong results among underlying infrastructure managers.
The portfolio came into the year with a defensive stance and remains overweight to infrastructure and real
return, underweight to resource equities and commodities, and close to a neutral weight relative to the index
in real estate.
38

Manager Evaluation
Metropolitan West Total Return Bond Pl
As of March 31, 2020
14.0 =
s a
S go» a? ———
£ sr —_[T[T_=—_A_IO
5 = —
2 2.0 » | @ | —_—— — a-—
a
-4.0 *
-10.0 : : :
1 3 5
QTR 2019 2018 2017 2016
Year Years Years
& Metropolitan West Total Return Bond Pi 2.3 (16) 8.3 (9) 4.7 (9) 3.3 (12) 9.2 (54) 0.3 (12) 3.5 (78) 2.6 (86)
® Bimbg. Barc. U.S. Aggregate Index 3.1 (9) 8.9 (6) 4.8 (8) 3.4 (10) 8.7 (65) 0.0 (20) 3.5 (77) 2.6 (83)
5th Percentile 75 11.7 5.4 3.5 12.0 0.8 6.3 7.2
1st Quartile 1.2 6.5 4.0 3.1 10.4 -0.3 5.2 S.1
Median -0.9 47 3.4 2.7 9.3 -0.9 45 4.2
3rd Quartile -2.9 3.2 2.8 2.3 8.3 -1.7 3.6 3.0
95th Percentile -5.8 -0.4 1.4 1.5 7.0 -2.8 2.7 1.9
0 6.0
¥ a gg @ 2 Over
c Performance
2 25 gt” 4
yg &
Pe -
5 ] & 3.0 «| . bd
: ° o,f ° 2 ;
5 é a He 1.5 ~ -
2 345 a Bg —— ~ Under
« w a & Performance
100 7 ; : : 7 : ; 0.0 15 3.0 4.5 6.0
6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 3/20 Benchmark (%)}
i Metropolitan West Total Return Bond Pl @ Over Performance Under Performance
Bimbg. Barc. U.S. Aggregate Index 4 dun-2015 ffs Mar-2020
Mutual fund data sourced from Lipper Analytical Services.

Manager Evaluation
Metropolitan West Total Return Bond Pl
As of March 31, 2020
4.92
4.86 »
co)
& 4.80 ~
£
=
oa 4.74 »
|
4.68 »
4.62 H 2 E 5 5 3
0.00 0.63 1.26 1.89 2.52 3.15 3.78 4.41
Risk (Standard Deviation %)
| Metropolitan West Total Return Bond PI
Bimbg. Barc. U.S. Aggregate Index
BC US Credit Index BC U.S. Government
Oo .@)
6* ee
s r
rz)
£a
oO
oO
O Oo
BC 1-3yr Gov/Credit BC U.S. Long Gov/Credit
Manager Style
| Style History Mar-2020 Average Style Exposure
Mutual fund data sourced from Lipper Analytical Services.
3.36 » @
x
E 3.32
Fe
v
aw
3.28 - a
0.00 0.61 1.22 1.83 2.44 3.05 3.66 4.27
Risk (Standard Deviation %)
i Metropolitan West Total Return Bond PI
Blmbg. Barc. U.S. Aggregate Index
Years Years
Return 47 3.3
Standard Deviation 3.2 3.0
vs. Bimbg. Barc. U.S. Aggregate index
Alpha -0.1 0.1
Beta 1.0 1.0
R-Squared 1.0 1.0
Consistency 50.0 51.7
Up Market Capture 98.2 95.1
Down Market Capture 99.1 91.2
vs. 90 Day U.S. Treasury Bill
Sharpe Ratio 0.9 0.7
40

Manager Evaluation
Metropolitan West Total Return Bond PI
Fund Name:
Fund Family :
Ticker :
Inception Date :
Portfolio Turnover :
Report Date March 31, 2020
Metropolitan West Funds: Total Return Bond Fund; Plan Class Shares Portfolio Assets : $80,539 Million
Metropolitan West Asset Management LLC Fund Assets : $23,878 Million
MWTSX Portfolio Manager: Team Managed
07/29/2011 PM Tenure :
255%
The Fund seeks to maximize long-term total return. The Fund invests at least 80% of its net assets in investment grade fixed income securities or unrated securities that are
determined by the Adviser to be of similar quality. Up to 20% of the Funds net assets may be invested in securities rated below investment grade.
GNMA and Other Mtg Backed 43.6% Avg. Coupon 3.00 %
Fixed Income Ee 106.3% Government Agency Securities 31.0% Nominal Maturity 7.69 Years
Corporate Notes/Bonds 26.9% Effective Maturity N/A
Other = 0.0% Asset Backed Securities 48% Duration 5.75 Years
cquities ~ 0.0% SEC 30 Day Yield N/A
Avg. Credit Quality AA
Convertibles 0.0%
Cash +
3-5Yrs «
5-10Yrs
1-3Yrs «
20-30Yrs +
10-20Yrs_ «
Other «
>30Yrs =
<1yr «
Not Rated «40.0%
Equities/Other
AA Rated
BB AND B Rated
CCC, CC AND C rated
ARated *|
BBB Rated
Government/AAA
66.5%
Mutual fund data sourced from Lipper Analytical Services.
41

Manager Evaluation
BlackRock Strategic Income Opportunities Fund K
As of March 31, 2020
20.0
5.0
Return (%)
-10.0 ~
-25.0
EI BlackRock Strategic Income Opportunities Fund K
© Blmbg. Barc. U.S. Aggregate Index
5th Percentile
1st Quartile
Median
3rd Quartile
95th Percentile
| ——— f 4
B
g a Fs z
QTR 1 3 5 2019 2018 2017 2016
Year Years Years
-5.8 (32) -0.9 (23) 1.5 (16) N/A 7.8 (37) 0.5 (36) 5.0 (43) N/A
3.1 (1) 8.9 (1) 4.8 (1) 3.4 (3) 8.7 (27) 0.0 (27) 3.5 (64) 2.6 (83)
0.7 3.2 2.3 3.1 14.5 2.2 10.7 13.8
-4.0 -1.4 1.0 17 9.2 0.1 6.5 8.4
-9.0 5.1 -0.2 0.8 6.9 -1.6 4.6 5.2
-13.9 -8.5 -1.3 0.0 5.4 -2.6 2.3 3.5
-18.8 -16.4 5.7 -2.8 17 5.5 -0.3 0.7
= BR
c & a
G 9
e 25 $
a= © @ Eg
© @ &
2 50 e
2 @
oo2 7 $ a
2 e 6
6/15 12/15 6/1 12/16 6/17 12/17 6/18 12/18 6/19 3/20
EA BlackRock Strategic Income Opportunities Fund K
Blmbg. Barc. U.S. Aggregate Index
Mutual fund data sourced from Lipper Analytical Services.
Manager (%)
5.0 =|
4.0 ~
3.0 «
2.0 +
Over
Performance
Under
+r
Performance
1.0
10
2.0
3.0
A4.0 5.0 6.0
Benchmark (%)
© Over Performance << Mar-2019
cfs Mar-2020
42

Manager Evaluation
BlackRock Strategic Income Opportunities Fund K
As of March 31, 2020
7.50
6.00 «
4.50 «
3.00 =
Return (%)
1.50
0.00 t T
0.00 0.86 1.72 2.58 3.44
H t
4.30 5.16
Risk (Standard Deviation %)
EO BlackRock Strategic Income Opportunities Fund K
Blmbg. Barc. U.S. Aggregate Index
6.02
3.80
3.60 ~
x
c5 3.40 » ©
o
ox
3.20 »
0.00 0.64 1.28 1.92 2.56 3.20 3.84 4,48
A BlackRock Strategic Income Opportunities Fund K
Risk (Standard Deviation %)
Blmbg. Barc. U.S. Aggregate Index
BC US Credit Index
O
BC U.S. Government
O
Capitalization
O
BC 1-3yr Gov/Credit
O
BC U.S. Long Gov/Credit
Manager Style
style History Mar-2020
Mutual fund data sourced from Lipper Analytical Services.
Average Style Exposure
Years Years
Return 15 N/A
Standard Deviation 4.3 N/A
vs. Blmbg. Bare. U.S. Aggregate Index
Alpha 0.1 N/A
Beta 0.4 N/A
R-Squared 0.1 N/A
Consistency 58.3 N/A
Up Market Capture 43.7 N/A
Down Market Capture 67.5 N/A
vs. 90 Day U.S. Treasury Bill
Sharpe Ratio -0.1 N/A
43

Manager Evaluation
BlackRock Strategic Income Opportunities Fund K
Report Date March 31, 2020
Mutual Fund Informatio 2
Fund Name: BlackRock Funds V: BlackRock Strategic Income Opportunities Portfolio Assets : $33,938 Million
Portfolio; Class K Shares
Fund Family : BlackRock Inc Fund Assets : 58,834 Million
Ticker : BSIKX Portfolio Manager: Rieder/Miller/Rogal
Inception Date : 03/28/2016 PM Tenure : 2016--2016--2017
Portfolio Turnover: 2,337%
The Fund seeks total return as is consistent with the preservation of capital. The Fund will invest opportunistically across the spectrum of fixed income sectors and securities.
Allocations to all sectors are unconstrained and the fund may invest in non-investment-grade, non-dollar-denominated and emerging markets.
10 Si as of 09 Fixe mM t
- GNMA and Other Mtg Backed 48.0 % Avg. Coupon 5.03 %
Fixed income ~ 113.7% Fgn. Currency Denominated Bonds 30.3 % Nominal Maturity N/A
Corporate Notes/Bonds 25.3% Effective Maturity 9.20 Years
Other ~ Treasury Notes/Bonds 6.0 % Duration 3.78 Years
Equities ~ Asset Backed Securities 41% SEC 30 Day Yield N/A
Avg. Credit Quality BBB
Convertibles
Cash ~
1-3Yrs D Rated
5-10Yrs AA Rated
BB AND B Rated
35Yrs = Not Rated
Other Government/AAA
<1Yr «4 CCC, CC AND C rated
10-20Vrs A Rated
Equities/Other
20-30Yrs = BBB Rated
>30Yrs Foreign Securities “| 30.3%
Mutual fund data sourced from Lipper Analytical Services.
44

Manager Evaluation
Fidelity Total Market Index Fund
As of March 31, 2020
_— 25.0 ~ ——4-—J
[=]3 =
Yoo Fe
-25.0 “4 |
-50.0 3
QTR 1 3 5 2019 2018 2017 2016
Year Years Years
@ Fidelity Total Market Index Fund -21.0 (42) -9.3 (33) 3.9 (24) 5.7 (15) 30.9 (25) 5.3 (28) 21.2 (39) 12.7 {26}
®@ Dow Jones U.S. Total Stock Market Index -21.0 (42) -9.3 (33) 3.9 (24) 5.7 (16) 30.9 (25) “5.3 (28) 21.2 (40) 12.6 (28)
Sth Percentile -15.9 -2.8 5.9 6.4 35.6 2.0 25.7 18.4
1st Quartile -19.8 -8.7 3.8 5.0 30.9 5.1 22.4 12.7
Median -21.7 -11.7 18 3.3 28.2 7.2 20.6 9.9
3rd Quartile -25.0 -16.5 -0.8 14 25.9 9.7 17.7 75
95th Percentile -32.0 -24.4 5.9 -2.9 18.1 -16.3 12.2 3.5
; eh ie i
& 25 |
2 ]
€ @
& 5o aH
ow
a
£B75
ov
[oa
too &
a
6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19
cq Fidelity Total Market Index Fund
Dow Jones U.S. Total Stock Market Index
Mutual fund data sourced from Lipper Analytical Services.
3/20
Manager (%)
20.0
Over xZ
Performance
15.0 =
10.0 ~
5.0 «
Under
0.0 : : . Performance
0.0 5.0 10.0 15.0 20.0
Benchmark (%)
© Over Performance
3 Jun-2015
Under Performance
of Mar-2020
45

Manager Evaluation
Fidelity Total Market Index Fund
As of March 31, 2020
3.94
3.93 « 5.72
Return (%)
Return (%)
3.92 5.70 »
0.00 4.00 8.00 12.00 16.00 20.00 24.00 0.00 4.00 8.00 12.00 16.00 20.00
Risk (Standard Deviation %} Risk (Standard Deviation %)
Ey Fidelity Total Market Index Fund LA Fidelity Total Market Index Fund
Dow Jones U.S. Total Stock Market Index
Dow Jones U.S. Total Stock Market Index
Large Cap Value Large Cap Growth Years Years
oO 7 O Return 3.9 5.7
G Standard Deviation 15.6 14.1
5 vs. Dow Jones U.S. Total Stock Market Index
* Alpha 0.0 0.0
= Beta 1.0 1.0
= R-Squared 1.0 1.0
S Consistency 50.0 50.0
Up Market Capture 100.0 100.1
O O Down Market Capture 160.0 100.0
Small Cap Value Small Cap Growth vs. 90 Day U.S. Treasury Bill
Sharpe Ratio 0.2 0.4
Manager Style
Mar-2020 © Average Style Exposure
a Style History
Mutual fund data sourced from Lipper Analytical Services.

Manager Evaluation
Fidelity Total Market Index Fund
Report Date March 31, 2020
Fund Name: Fidelity Concord Street Trust: Fidelity Total Market Index Fund
Fund Family : Fidelity Management & Research Company
Ticker : FSKAX
Inception Date : 09/08/2011
Portfolio Turnover: 8%
Portfolio Assets :
Fund Assets :
Portfolio Manager :
PM Tenure :
$97,893 Million
$50,604 Million
Team Managed
The Fund seeks to provide investment results corresponding to the total return of a broad range of United States stocks. The Fund invests at least 80% of its assets in common stocks
included in the Dow Jones US Total Stock Market Index, which represents the performance of a broad range of U.S. stocks.
Equities ~
Other
Fixed Income
Convertibles
Cash *
-0.1%
0.5%
0.1%
0.0%
99.5%
ty Characteristics
Total Securities
Avg. Market Cap
P/E
P/B
Div. Yield
Annual EPS
SYr EPS
3Yr EPS Growth
S OT
3,448
$220,251 Million
29.0
7.1
2.3%
25.6
15.5
18.9
Mutual fund data sourced from Lipper Analytical Services.
Microsoft Corp ORD
Apple Inc ORD
Amazon.com Inc ORD
Facebook Inc ORD
Berkshire Hathaway Inc ORD
JPMorgan Chase & Co ORD
Alphabet Inc ORD 1
Alphabet Inc ORD 2
Johnson & Johnson ORD
Visa Inc ORD
Telecommunication Services
Materials
Utilities
Energy
Consumer Staples
Health Care
Consumer Discretionary
Industrials
Financials
Information Technology
3.6%
24%
1.6%
14%
1.3%
1.3%
1.3%
1.2%
1.0%
47

Manager Evaluation
American Funds EuroPacific Growth R6
As of March 31, 2020
230 -|
-50.0 :
1
TRQ Year
@ American Funds EuroPacific Growth R6 -22.4 (30) -12.7 (24)
@ MSCI AC World ex USA (Net) -23.4 {34) -15.6 (37)
5th Percentile -17.7 5.1
1st Quartile -22.0 -13.0
Median -24.5 -17.2
3rd Quartile -26.3 -18.9
95th Percentile -30.6 -24.0
3
Years
0.3 (8)
-2.0 (25)
5.2
-2.1
-3.6
5.8
75
x uo “
5 a a | @
% 25 ee —ée-
a @
c ae” ©
8 50 eo °
a
o
£eee 6
oc @ ©
6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 3/20
ay American Funds EuroPacific Growth R6
AS
{9 MSCI AC World ex USA (Net)
Mutual fund data sourced from Lipper Analytical Services.
Manager (%)
5 2019 2018 2017
Years
0.9 (1) 27.4 (11) -14.9 (44) 31.2 (9)
-0.6 (2) 21.5 (59) -14.2 (33) 27.2 (17)
-0.9 31.9 14.1 32.9
“1.7 25.0 -13.9 26.7
-2.8 22.1 -15.7 24.4
4.4 19.0 -17.8 23.0
5.2 17.5 -21.7 21.4
15.0
2016
1.0 (52)
4S (5)
4.0
2.5
1.3
-0.9
“6.5
Over S@
Performance ry
10.0 » ® ® a
®
. @
5.0 = wo
eee
6
0.0 » ofp
Under
5.0 Performance
-5.0 0.0 5.0 10.0 15.0
Benchmark (%)
Under Performance
cfs Mar-2020
> Over Performance
“s€ jun-2015
48

Manager Evaluation
American Funds EuroPacific Growth R6
As of March 31, 2020
0.98 1.46 «4
_ a = va
= 0.00 + = 0.73 +
£ £
s =
7 o
ce -0.98 2 0.00 -
“1.96 » 0.73 ~ ®
-2.94 t 7 t ; : -1.46 ; 5 7 7
0.00 4.00 8.00 12.00 16.00 20.00 24.00 0.00 4.00 8.00 12.00 16.00 20.00
Risk (Standard Deviation %) Risk (Standard Deviation %)
a American Funds EuroPacific Growth R6 a] American Funds EuroPacific Growth R6
MSCI AC World ex USA (Net) MSCI AC World ex USA (Net)
MSCI World ex USA Value MSCI World ex USA Growth Years Years
oO : " . Oo Return 0.3 0.9
wit Standard Deviation 15.4 14.1
c vs. MSCI AC World ex USA (Net)
2 at Alpha 2.4 1.5
= Beta 1.0 1.0
2 R-Squared 1.0 0.9
e Consistency 55.6 53.3
Up Market Capture 107.2 98.5
Do