STATE OF FLORIDA DEFERRED COMPENSATION PLAN 2014 ANNUAL PERFORMANCE REPORT (January 1, 2014 thru December 31, 2014) Prepared By: SunGard Omni (Recordkeeper)
Chief Financial Officer of the State of Florida The Chief Financial Officer is the constitutional officer with the fiduciary responsibility over the Division of Treasury (17.55 F.S.), Bureau of Deferred Compensation. As a core function of the Department of Financial Services, the Division of Treasury and the Bureau of Deferred Compensation s goals are to be effective stewards of the operational monies and other financial assets of the State and to assist state employees with tools to help them prepare for financial security during their retirement years. As a fiduciary of the Deferred Compensation Plan, the Chief Financial Officer is responsible to: Act solely in the interests of the participants and their beneficiaries; Be prudent in the decisions made about the plan; Pay only reasonable and necessary expenses for the plan; and Follow the terms of the plan. The CFO administers the Deferred Compensation Plan, IRC 457(b), a voluntary retirement savings plan for employees of the State of Florida (112.215 F.S.). Some of the objectives of the Deferred Compensation program are to educate prospective and current participants, distribute informational material, market the program by conducting presentations throughout the state, distribute communication materials, monitor performance of all investment options available to employees, and perform many other functions that lead to the efficient operation of the Deferred Compensation program and the financial success of its participants and their beneficiaries.
TABLE OF CONTENTS INVESTMENT PROVIDER INFORMATION and GLOSSARY SECTION I Page 1 ACCOUNTS, DEFERRALS, ASSETS AND DISTRIBUTIONS SECTION II Summary of Participant Accounts Page 7 Summary of Deferrals Page 9 Summary of Plan Assets Page 13 Summary of Account Distributions Page 17 DETAIL OF FIXED ACCOUNTS SECTION III Page 18 DETAIL OF VARIABLE ACCOUNTS SECTION IV Page 20 12/31/2014 INVESTMENT PERFORMANCE REPORT SECTION V Page 27 2015 PARTICIPANT SURVEY REPORT SECTION VI Page 40
SECTION I INVESTMENT PROVIDER INFORMATION and GLOSSARY Section I 1
INVESTMENT PROVIDER INFORMATION INVESTMENT PROVIDERS ABBREVIATED IDENTIFIER VALIC VAL Charles Schwab CS Great West Life & Annuity Insurance Company GWL VOYA Financial VOY Nationwide Retirement Solutions NRS T. Rowe Price & Associates Investment Company TRP PLAN INVESTMENT PROVIDER HISTORY Aetna Life Insurance Company, Capitol Life Insurance Company, Nationwide Life Insurance Company and Voyager Life Insurance Company were the original Plan Investment Providers at the formation and introduction of the Plan in September 1982. Great American Reserve Insurance Company purchased Voyager Life including the Plan assets in May 1986. Great West Life & Annuity Life Insurance Company became a Plan Investment Provider in April 1987. T. Rowe Price & Associates Investment Company became a Plan Investment Provider in May 1987. Fixed annuity Plan assets of Capitol Life were assumed by Security First Life Insurance Company in July 1989. Variable annuity Plan assets of Capitol Life were assumed by Security First Life in November 1989. American General Financial Group became a Plan Investment Provider in July 1992. Metropolitan Life Insurance Company purchased Security First Life in October 1997. Great American Reserve left the Plan as an Investment Provider in December 1997 and assets were purchased by Nationwide Life Insurance Company. Section I 2
PLAN INVESTMENT PROVIDER HISTORY (continued) ING Financial Services purchased Aetna Life including the Plan assets in November 2000, changing their name to ING-Aetna Financial Services in January 2001. Security First Life changed its name to MetLife Investors Investment Company in January 2001. AIG purchased American General Financial Group (VALIC) in August 2001, changing their name to AIG-VALIC in January 2002. ING-Aetna changed its name to ING in November 2002. MetLife Investors left the Plan as an Investment Provider in December 2002, variable assets were purchased by Nationwide. Safeco Insurance Company (self-directed brokerage option) became a Plan Investment Provider in January 2003. The Plan assets of MetLife Investors, WAMU and Nationwide Financial Services were assumed by Nationwide Retirement Solutions in January 2003. Safeco restructured itself and formed Symetra Financial, a full service investment company, which assumed the Investment Provider role for the Plan in August 2004. Symetra Financial withdrew from their role as a Plan Investment Provider on December 31, 2007. Symetra Financial participants and assets were rolled into Charles Schwab on January 1, 2008. Enrollment in Charles Schwab is through NRS. AIG VALIC changed its name to VALIC in 2009. ING became VOYA Financial in 2014. Section I 3
PLAN INVESTMENT PROVIDER HISTORY (continued) NOTES OF INTEREST: 1 - Great American Reserve is currently not a Plan Investment Provider but maintains appropriate reserves for assets placed in annuity distribution prior to their acquisition by Nationwide Financial Services. 2 - MetLife Investors is currently not a Plan Investment Provider but maintains appropriate reserves for assets placed in annuity distribution prior to their acquisition by Nationwide Retirement Services. Section I 4
GLOSSARY OF TERMS ACCOUNTS (BILLABLE): The investment portfolio of an individual participant in the Plan, who is in either the accumulation or distribution phase. A participant enrolled with multiple providers would count as one billable account per each Investment Provider. ACTIVE ACCOUNTS: An individual participant investment portfolio(s) in the Plan that is currently receiving deferrals. ACCOUNT VALUES: The total of all participant assets in a particular investment portfolio. DEFERRALS: An amount reduced (set aside) from a participant s compensation and deposited into their account in the Plan. DISTRIBUTIONS: An amount from a participant s account that is being provided to that participant in a lump sum or through periodic payments. FIXED PRODUCTS: A fixed product guarantees a rate of return for a specified period of time, usually one quarter (three months). This term can refer to either an insurance company, bank or investment company product. INVESTMENT PROVIDERS: A company authorized to issue investment products pursuant to this Plan. PARTICIPANTS: An individual who is enrolled in the Plan, or their beneficiary. VARIABLE PRODUCTS: This term can refer to either a money market or mutual funds. Rates of return are not guaranteed, and rate of return is calculated based upon the performance (positive or negative) of its underlying investments. PLEASE NOTE: In an effort to make this Report more user friendly, dollar amounts have been rounded to the nearest whole number. Section I 5
SECTION II ACCOUNTS, DEFERRALS, ASSETS AND DISTRIBUTIONS Section II 6
Summary of Participant Accounts December 31, 2014 INVESTMENT PROVIDERS ACTIVE 2014 IN PAYOUT 2014 VALIC (VAL) 14,016 467 14,278 14,483 205 1.4% 2013 2014 TOTAL 2013-2014 Change in Accounts 2013-2014 Percent Change CHARLES SCHWAB (CS) 800 0 766 800 34 4.4% GREAT WEST LIFE (GWL) 9,800 677 10,492 10,477-15 -0.1% VOYA (VOY) 22,015 420 21,793 22,435 642 2.9% NATIONWIDE RETIREMENT SOLUTIONS (NRS) 24,858 1,901 26,311 26,759 448 1.7% T. ROWE PRICE (TRP) 5,432 739 5,837 6,171 334 5.7% PLAN TOTALS 76,921 4,204 79,477 81,125 1,648 2.1% NOTES: ACTIVE ACCOUNTS include all participant accounts which may be currently deferring, or not deferring, with an account balance (participants may have multiple investment providers). IN PAYOUT includes the participant accounts currently receiving a distribution from the Plan. Section II 7
Percentage of Participant Accounts by Investment Provider 2014 VALIC (VAL) TRP 7.61% VAL 17.85% CHARLES SCHWAB (CS) CS 0.99% GREAT WEST LIFE (GWL) VOYA (VOY) NRS 32.98% GWL 12.91% NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) VOY 27.65% Section II 8
Summary of Deferrals TOTAL INVESTMENT PROVIDERS FIXED 2014 VARIABLE 2014 2013 2014 % CHANGE VALIC (VAL) $ 11,060,404 $ 20,103,527 $ 30,235,349 $ 31,163,931 3.1% GREAT WEST LIFE (GWL) $ 3,979,003 $ 8,687,056 $ 11,244,341 $ 12,666,059 12.6% VOYA (VOY) $ 11,898,416 $ 23,418,572 $ 33,861,963 $ 35,316,988 4.3% NATIONWIDE RETIREMENT SOLUTIONS (NRS) $ 24,315,088 $ 23,825,760 $ 45,986,807 $ 48,140,847 4.7% T. ROWE PRICE (TRP) $ 1,848,977 $ 20,626,329 $ 22,115,249 $ 22,475,306 1.6% PLAN TOTALS* $ 53,101,889 $ 96,661,243 $ 143,443,710 $ 149,763,132 4.4% * Differences in deferral amounts that were reported monthly by the Bureau and the amounts provided by the Investment Providers are due to refunds, pay on demands and other salary deferral adjustments that have been made by the State after each payroll. NOTE: There are no deferrals made directly to Charles Schwab. The deferrals are made to NRS and at the participants request to NRS, their designated assets are moved from NRS to the Charles Schwab cash account. Section II 9
Total Plan Deferrals 2014 VALIC (VAL) TRP 15.01% VAL 20.81% GREAT WEST LIFE (GWL) VOYA (VOY) GWL 8.46% NRS 32.14% NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) VOY 23.58% NOTE: There are no deferrals made directly to Charles Schwab. The deferrals are made to NRS and at the participants request to NRS, their designated assets are moved from NRS to the Charles Schwab cash account. Section II 10
Average Annual Participant Deferrals by Gender and Investment Provider Female Male $8,000.00 $7,000.00 $7,000.00 $6,000.00 $6,000.00 $5,000.00 $5,000.00 $4,000.00 $4,000.00 $3,000.00 $3,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 $4,411.45 $3,637.58 $2,923.35 $4,323.46 $3,061.53 $2,813.56 $3,537.74 $2,790.76 GENDER DETAILS VALIC (VAL) GREAT WEST $3,017.75 ING (ING) NATIONWIDE T. ROWE Female Accounts $1,944.03 $2,119.35 4,731 3,719 8,152 $2,612.44 7,956 1,498 $1,583.29 Deferrals $1,843.01 $ 2,729.99 $2,107.55 $ 1,538.56 $ 2,155.52 $ 2,613.61 $ 5,485.45 Male $1,486.08 Accounts 4,351 3,240 5,564 6,988 1,981 Deferrals $ 4,000.69 $ 1,775.86 $ 3,095.32 $ 3,541.83 $ 7,047.98 $6,457.33 $6,795.77 $4,862.11 $5,169.64 $0.00 $- VALIC (VAL) GREAT WEST LIFE (GWL) VOYA ING (ING) (VOY) NATIONWIDE (NRS) T. ROWE PRICE (TRP) Section II 11
Deferrals by Investment Provider $25,000,000 $20,000,000 $20,103,527 $23,418,572 $24,315,088 $23,825,760 $20,626,329 Fixed $15,000,000 $11,060,404 $11,898,416 Variable $10,000,000 $8,687,056 $5,000,000 $3,979,003 $1,848,977 $- VALIC (VAL) GREAT WEST LIFE (GWL) VOYA (VOY) NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) 2013 2014 Percentage of Fixed & Variable Deferrals 35.46% FIXED 2014 FIXED 2014 64.54% VARIABLE VARIABLE 2014 2014 Section II 12
Summary of Plan Assets (including present value of annuities) 2014 INVESTMENT PROVIDERS Account Values Annuity Values Total 2013 Total Assets Change in Plan Assets % Change in Plan Assets VALIC (VAL) $ 508,683,378 $ 397,075 $ 509,080,453 $ 480,013,770 $ 29,066,682 6.1% CHARLES SCHWAB (CS) $ 58,563,393 $ - $ 58,563,393 $ 51,962,783 $ 6,600,610 12.7% GREAT AMERICAN RESERVE (GAR) (annuities only) $ - $ 3,252,515 $ 3,252,515 $ 3,598,991 $ (346,476) -9.6% GREAT WEST LIFE (GWL) $ 231,807,804 $ 415,388 $ 232,223,192 $ 219,764,259 $ 12,458,933 5.7% VOYA (VOY) $ 739,474,233 $ 10,444,813 $ 749,919,046 $ 732,970,401 $ 16,948,645 2.3% METLIFE INVESTORS (MET) (annuities only) $ - $ 8,683,663 $ 8,683,663 $ 9,771,302 $ (1,087,639) -11.1% NATIONWIDE FINANCIAL SRVS (NFS) (annuities only) $ - $ 2,246,566 $ 2,246,566 $ 2,451,375 $ (204,809) -8.4% NATIONWIDE RETIREMENT SOLUTIONS (NRS) $ 1,389,627,015 $ - $ 1,389,627,015 $ 1,297,683,046 $ 91,943,969 7.1% T. ROWE PRICE (TRP) $ 523,266,850 $ - $ 523,266,850 $ 494,596,029 $ 28,670,821 5.8% PLAN TOTALS $ 3,451,422,672 $ 25,440,020 $ 3,476,862,692 $ 3,292,811,956 $ 184,050,737 5.6% Section II 13
Percentage of Plan Assets By Investment Provider (including present value of annuities) 2014 VALIC (VAL) TRP 15.05% VAL 14.64% CS 1.68% GAR 0.09% CHARLES SCHWAB (CS) GREAT AMERICAN RESERVE (GAR) (annuities only) GREAT WEST LIFE (GWL) ######## GWL 6.68% VOYA (VOY) METLIFE INVESTORS (MET) (annuities only) NRS 39.97% VOY 21.57% NATIONWIDE FINANCIAL SRVS (NFS) (annuities only) NFS 0.06% MET 0.25% NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) Section II 14
2014 Summary of Plan Assets Fixed and Variable Plan Assets (excluding present value of annuities) INVESTMENT PROVIDERS FIXED PERCENT OF TOTAL VARIABLE PERCENT OF TOTAL TOTAL VALIC (VAL) $ 206,163,656 40.5% $ 302,519,722 59.5% $ 508,683,378 CHARLES SCHWAB (CS) $ - 0.0% $ 58,563,393 100.0% $ 58,563,393 GREAT WEST LIFE (GWL) $ 88,190,978 38.0% $ 143,616,826 62.0% $ 231,807,804 VOYA (VOY) $ 333,897,443 45.2% $ 405,576,790 54.8% $ 739,474,233 NATIONWIDE RETIREMENT SOLUTIONS (NRS) $ 803,923,189 57.9% $ 585,703,826 42.1% $ 1,389,627,015 T. ROWE PRICE (TRP) $ 58,849,514 11.2% $ 464,417,336 88.8% $ 523,266,850 PLAN TOTALS $ 1,491,024,780 43.2% $ 1,960,397,892 56.8% $ 3,451,422,672 Section II 15
Percentage of Plan Assets By Investment Provider (excluding present value of annuities) 2014 VALIC (VAL) TRP 15.16% VAL 14.74% CHARLES SCHWAB (CS) CS 1.70% GWL 6.72% GREAT WEST LIFE (GWL) VOYA (VOY) NRS 40.26% VOY 21.43% NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) Section II 16
Summary of Account Distributions INVESTMENT PROVIDERS Distribution Type 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Count VALIC GREAT WEST LIFE VOYA Hardship 23 23 37 31 114 Lump Sum 376 326 356 286 1,344 Recurring 26 25 15 42 108 Loans Approved 63 91 100 94 348 Total 488 465 508 453 1,914 Hardship 30 30 25 30 115 Lump Sum 202 208 201 168 779 Recurring 5 9 2 10 26 Loans Approved 60 76 68 62 266 Total 297 323 296 270 1,186 Hardship 44 56 80 77 257 Lump Sum 465 500 500 487 1,952 Recurring 36 24 27 62 149 Loans Approved 96 136 131 142 505 Total 641 716 738 768 2,863 NATIONWIDE RETIREMENT SOLUTIONS Hardship 60 83 128 95 366 Lump Sum 529 447 512 500 1,988 Recurring 69 49 51 85 254 Loans Approved 163 205 230 235 833 821 784 921 915 3,441 T. ROWE PRICE Hardship 1 2 5 6 14 Lump Sum 30 32 29 37 128 Recurring 3 9 3 8 23 Loans Approved 33 37 35 24 129 Total 67 80 72 75 294 ALL INVESTMENT PROVIDERS Hardship 158 194 275 239 866 Lump Sum 1,602 1,513 1,598 1,478 6,191 Recurring 139 116 98 207 560 Loans Approved 415 545 564 557 2,081 PLAN TOTALS 2,314 2,368 2,535 2,481 9,698 Section II 17
SECTION III DETAIL OF FIXED ACCOUNTS Section III 18
Detail of Fixed Accounts 2014 2013-2014 VALIC INVESTMENT PROVIDERS Values Percent of Plan Assets Number of Accounts Change in Account Value Change in Number of Accounts VALIC Fixed Interest Option $ 206,163,656 5.9% 9,697 $ 2,337,006 (86) Total $ 206,163,656 5.9% 9,697 $ 2,337,006 (86) GREAT WEST LIFE Guaranteed Portfolio Product $ 88,190,978 2.5% 4,676 $ 3,471,905 (306) Total $ 88,190,978 2.5% 4,676 $ 3,471,905 (306) VOYA Voya Fixed Account - 457/401 $ 333,897,443 9.6% 13,547 $ (13,454,980) 2 Total $ 333,897,443 9.6% 13,547 $ (13,454,980) 2 NATIONWIDE RETIREMENT SOLUTIONS Fixed Assets $ 343,160 0.0% 72 $ 343,160 72 NRS Florida Fixed Fund $ 763,053,521 21.9% 15,281 $ 70,471,470 (42) NW BANK 1 YR CD $ - 0.0% 0 $ (161,145) (2) Nationwide Bank 3 Yr CD $ 873,547 0.0% 16 $ 205,599 (4) Nationwide Bank 5 Yr CD $ 2,606,190 0.1% 44 $ (304,496) (23) Nationwide Bank Liquid Savings $ 37,046,771 1.1% 2,100 $ (5,549,874) (180) Total $ 803,923,189 23.1% 17,513 $ 65,004,715 (179) T. ROWE PRICE Valic Fixed Int Option $ 58,843,332 1.7% 1,165 $ 199,474 (58) Prime Reserve Fund $ 6,181 0.0% 2 $ (35) 0 Total $ 58,849,514 1.7% 1,167 $ 199,438 (58) PLAN TOTALS $ 1,491,024,780 42.9% 46,600 $ 57,558,085 (627) * Note: 2013-44% of plan assets were fixed accounts. Section III 19
SECTION IV DETAIL OF VARIABLE ACCOUNTS Section IV 20
Detail of Variable Accounts VALIC INVESTMENT PROVIDER MUTUAL FUNDS Value American Century Infl-Adj Bond Inv $ 5,130,907 0.1% 918 $ 507,853 105 American Century Diversified Bond Inv $ 8,515,172 0.2% 906 $ 875,372 24 American Funds American Mutual R4 $ 10,407,275 0.3% 1,154 $ 4,850,525 334 American Funds EuroPacific Fund R4 $ 30,451,650 0.9% 4,646 $ (820,564) 173 American Funds Inv. Co. of America R4 $ 14,871,237 0.4% 2,418 $ 3,291,254 506 American Capital World Bond R4 $ 1,607,650 0.0% 386 $ 203,121 25 Calvert Equity Portfolio A $ 5,380,832 0.2% 791 $ (281,212) (39) Dreyfus MidCap Index $ 43,253,522 1.2% 4,213 $ 2,487,553 408 Dreyfus Tech Growth A $ 6,112,151 0.2% 1,301 $ 230,849 29 Franklin U.S. Government Securities A $ 10,032,267 0.3% 1,694 $ (462,501) (166) Invesco Mid Cap Growth R5 $ 11,429,239 0.3% 1,666 $ 913,449 (41) Invesco Small Cap Growth A $ 13,840,138 0.4% 2,396 $ 4,028,807 60 Invesco Small Cap Value A $ 28,928,448 0.8% 3,582 $ (447,474) 187 Ivy Asset Strategy Y $ 5,239,507 0.2% 721 $ (140,785) 44 MFS Mass Invest Growth Stock R3 $ 22,660,880 0.7% 3,100 $ 1,211,212 (221) Neuberg Ber Real Estate Trust $ 3,223,356 0.1% 1,254 $ 1,057,265 347 Prud Jenn Short-Term Corporate Bond A $ 1,833,290 0.1% 240 $ 405,502 1 Vanguard Total Stock Index $ 69,131,171 2.0% 5,518 $ 7,220,771 129 Wells Fargo Advantage DJ Target Total Adm $ 54,831 0.0% 12 $ 49,951 4 Wells Fargo Advantage DJ Target 2010 Adm $ 68,360 0.0% 21 $ 23,330 0 Wells Fargo Advantage DJ Target 2015 Adm $ 512,605 0.0% 20 $ 231,026 6 Wells Fargo Advantage DJ Target 2020 Adm $ 1,188,651 0.0% 91 $ 59,918 0 Wells Fargo Advantage DJ Target 2025 Adm $ 233,996 0.0% 43 $ 174,973 23 Wells Fargo Advantage DJ Target 2030 Adm $ 740,904 0.0% 107 $ 210,852 12 Wells Fargo Advantage DJ Target 2035 Adm $ 81,356 0.0% 39 $ 64,493 21 Wells Fargo Advantage DJ Target 2040 Adm $ 390,475 0.0% 84 $ 111,365 15 Wells Fargo Advantage DJ Target 2045 Adm $ 172,754 0.0% 43 $ 103,327 24 Wells Fargo Advantage DJ Target 2050 Adm $ 350,635 0.0% 55 $ 113,840 7 Wells Fargo Advantage DJ Target 2055 Adm $ 23,659 0.0% 14 $ 5,781 7 Outstanding Plan Loans $ 6,652,804 2014 Percent of Total Plan Assets Number of People Change in Value 2013-2014 Change in Number of People Total $ 302,519,722 8.7% $ 26,279,852 Section IV 21
Detail of Variable Accounts INVESTMENT PROVIDER MUTUAL FUNDS CHARLES SCHWAB Value 2014 Percent of Total Plan Assets Number of People Change in Value 2013-2014 Change in Number of People FDIC Certificates of Deposit & Liquid Savings $ 264,945 0.0% - $ 4,385 - Stable Value $ - 0.0% - $ - - Mutual Funds $ 15,199,656 0.4% - $ 1,446,244 - Sweep Money Market $ 8,640,031 0.2% - $ 75,400 - Domestic Stock $ 20,945,904 0.6% - $ 3,023,886 - Preferred Stock $ 190,490 0.0% - $ 25,318 - International Stock $ 1,677,812 0.0% - $ 72,108 - Corporate Bonds $ 436,821 0.0% - $ (87,865) - Closed End Mutual Funds $ 777,409 0.0% - $ 45,695 - Real Estate Investment Trusts (REITs) $ 553,202 0.0% - $ (3,274) - Exchange Traded Funds (ETFs) $ 9,722,548 0.3% - $ 1,968,910 - Government Bonds $ 181,269 0.0% - $ 28,543 - Options $ (26,694) 0.0% - $ 1,258 - Total $ 58,563,393 1.7% $ 6,600,610 Section IV 22
Detail of Variable Accounts INVESTMENT PROVIDER MUTUAL FUNDS GREAT WEST LIFE Value 2014 Percent of Total Plan Assets Number of People Change in Value 2013-2014 Change in Number of People Aggressive Profile $ 15,856,517 0.5% 1,817 $ 411,193 (83) Moderate Profile $ 25,141,689 0.7% 2,232 $ 632,508 (163) Conservative Profile $ 6,307,220 0.2% 632 $ 560,571 (27) American Century One Choice 2015 Inv $ 684,205 0.0% 74 $ (315,289) 15 American Century One Choice 2020 Inv $ 446,762 0.0% 95 $ 209,777 37 American Century One Choice 2025 Inv $ 1,139,234 0.0% 212 $ 295,300 57 American Century One Choice 2030 Inv $ 310,488 0.0% 145 $ 133,478 65 American Century One Choice 2035 Inv $ 473,062 0.0% 200 $ 122,683 58 American Century One Choice 2040 Inv $ 85,543 0.0% 118 $ 61,893 56 American Century One Choice 2045 Inv $ 329,092 0.0% 163 $ 190,673 58 American Century One Choice 2050 Inv $ 140,282 0.0% 133 $ 85,220 76 American Century One Choice 2055 Inv $ 162,851 0.0% 149 $ 134,325 108 American Century One Choice In Ret Inv $ 210,122 0.0% 48 $ 116,869 16 American Funds Wash Mutual A $ 14,530,020 0.4% 1,750 $ 2,240,219 18 Artisan International Inv $ 5,974,412 0.2% 1,475 $ (538,863) (26) BlackRock Bond Index Institutional $ 3,446,036 0.1% 1,175 $ 238,703 (20) BlackRock Capital Appreciation Instl $ 12,029,903 0.3% 1,393 $ 301,929 (425) Columbia Acorn Fund Z $ 6,381,580 0.2% 732 $ (143,341) 212 Columbia Small Cap Value I Fund Z $ 3,465,826 0.1% 744 $ (176,325) (516) Dreyfus Appreciation Fund $ 6,381,256 0.2% 1,315 $ 496,238 254 Neuberger Berman Socially Responsive - Inv $ 8,584,302 0.2% 1,224 $ 593,604 (204) Oppenheimer Developing Markets Y $ 609,340 0.0% 969 $ 326,399 57 Perkins Mid Cap Value Fund T $ 6,063,612 0.2% 1,318 $ 282,991 (15) PIMCO Total Return Admin $ 5,159,891 0.1% 1,461 $ (1,427) 82 Prudential Jennison Mid Cap Growth Z $ 4,301,552 0.1% 901 $ 839,397 480 Vanguard Small Cap Index Instl $ 11,138,883 0.3% 1,460 $ 1,297,038 33 Wasatch Small Cap Growth $ 620,570 0.0% 59 $ 159,125 (1) Outstanding Plan Loans $ 3,642,578 Total $ 143,616,826 4.1% $ 8,554,887 Section IV 23
Detail of Variable Accounts VOYA INVESTMENT PROVIDER MUTUAL FUNDS Value 2014 Percent of Total Plan Assets Number of People Change in Value 2013-2014 Change in Number of People Vanguard Target Retirement 2010 Fund - Investor Shares $ 583,234 0.0% 67 $ 76,577 11 Vanguard Target Retirement 2015 Fund - Investor Shares $ 3,015,432 0.1% 159 $ 1,096,935 37 Vanguard Target Retirement 2020 Fund - Investor shares $ 2,908,810 0.1% 255 $ 791,616 83 Vanguard Target Retirement 2025 Fund- Investor Shares $ 4,553,699 0.1% 306 $ 1,248,627 106 Vanguard Target Retirement 2030 Fund- Investor Shares $ 2,256,091 0.1% 293 $ 965,032 92 Vanguard Target Retirement 2035 Fund- Investor Shares $ 1,525,928 0.0% 329 $ 529,554 111 Vanguard Target Retirement 2040 Fund- Investor Shares $ 1,780,176 0.1% 300 $ 673,943 75 Vanguard Target Retirement 2045 Fund- Investor Shares $ 1,077,854 0.0% 309 $ 478,088 125 Vanguard Target Retirement 2050 Fund- Investor Shares $ 514,605 0.0% 216 $ 222,271 99 Vanguard Target Retirement 2055 Fund- Investor Shares $ 193,414 0.0% 98 $ 69,838 43 Vanguard Target Retirement 2060 Fund- Investor Shares $ 486,975 0.0% 48 $ 418,588 24 Vanguard Target Retirement Income- Investors Shares $ 8,265,212 0.2% 422 $ 2,743,821 109 Vanguard Long-Term Bond Index Fund - Institutional $ 6,764,215 0.2% 1,175 $ 1,587,799 89 Voya GNMA Income Fund - Class I $ 12,427,478 0.4% 1,981 $ 148,033 (70) American Funds American Balanced Fund R4 $ 50,349,125 1.4% 4,457 $ 5,629,326 343 Eaton Vance Large-Cap Value Fund - Class I $ 20,615,429 0.6% 2,785 $ 1,521,190 5 Pioneer Fund - Class Y Shares $ 40,071,255 1.2% 3,042 $ 1,703,405 (47) Voya U.S. Stock Index Portfolio - Institutional $ 29,444,688 0.8% 3,202 $ 5,336,522 450 American Funds The Growth Fund of America R4 $ 75,720,634 2.2% 7,000 $ 5,800,231 158 AllianzGI NFJ Small-Cap Value Fund - Class A $ 24,158,358 0.7% 4,445 $ (790,422) (82) Baron Growth Fund - Retail Shares $ 21,932,655 0.6% 3,212 $ (1,500,643) (35) Loomis Sayles Small Cap Growth Fund - Institutional Class $ 3,917,347 0.1% 933 $ (1,040,816) 261 Morgan Stanley Inst Fund Trust Mid Cap- Growth Port A $ 21,634,276 0.6% 3,362 $ (800,145) (72) Vanguard Mid-Cap Index Fund - Institutional Shares $ 17,314,770 0.5% 2,238 $ 4,561,058 391 American Funds New Perspective Fund - R4 $ 47,085,014 1.4% 6,640 $ 129,611 (4) Thornburg International Value Fund - Class R5 $ 3,367,559 0.1% 756 $ (21,189) 32 Outstanding Plan Loans $ 3,612,556 Total $ 405,576,790 11.7% $ 31,578,850 Section IV 24
Detail of Variable Accounts INVESTMENT PROVIDER MUTUAL FUNDS NATIONWIDE RETIREMENT SOLUTIONS Value 2014 Percent of Total Plan Assets Number of People Change in Value 2013-2014 Change in Number of People American Century Equity Growth Fund - Investor Class $ 32,668,940 0.9% 2,248 $ 2,805,516 14 American Century Equity Income Fund - Investor Class $ 22,956,891 0.7% 1,580 $ 1,008,569 (22) American Century Heritage Fund - Investor Class $ 10,458,860 0.3% 956 $ 345,038 (13) Dodge & Cox Income Fund $ 33,870,265 1.0% 2,133 $ 2,616,381 7 Federated Mid-Cap Index Fund - Service Shares $ 24,378,313 0.7% 1,729 $ 462,465 (14) Fidelity Contrafund $ 32,985,145 0.9% 1,698 $ 4,125,029 175 Fidelity Freedom 2015 Fund $ 3,943,031 0.1% 176 $ 1,032,203 28 Fidelity Freedom 2020 Fund $ 6,628,216 0.2% 337 $ 1,247,302 65 Fidelity Freedom 2025 Fund $ 4,701,951 0.1% 311 $ 1,336,722 83 Fidelity Freedom 2030 Fund $ 2,727,474 0.1% 384 $ 963,921 114 Fidelity Freedom 2035 Fund $ 1,541,324 0.0% 339 $ 508,359 119 Fidelity Freedom 2040 Fund $ 829,654 0.0% 374 $ 448,969 133 Fidelity Freedom 2045 Fund $ 372,436 0.0% 298 $ 148,911 133 Fidelity Freedom 2050 Fund $ 419,740 0.0% 439 $ 205,205 157 Fidelity Freedom 2055 Fund $ 313,025 0.0% 486 $ 177,672 224 Fidelity Freedom Income Fund $ 1,176,580 0.0% 103 $ 244,504 3 Fidelity Puritan(R) Fund $ 10,821,987 0.3% 628 $ 2,838,884 104 Fidelity(R) Advisor Small Cap Fund - Class A $ 3,013,723 0.1% 419 $ 1,326,256 166 Invesco Growth and Income Fund - Class A $ 56,421,010 1.6% 2,965 $ 1,721,363 (77) JPMorgan Mid Cap Value Fund - Select Shares $ 19,918,527 0.6% 1,443 $ 2,940,468 30 Morgan Stanley Inst Fund, Inc. - Growth Portfolio - Class P $ 79,230,008 2.3% 3,878 $ (1,517,919) (100) Nationwide Invest Dest Aggressive Fund: Service Class $ 12,808,950 0.4% 1,493 $ 1,052,555 7 Nationwide Invest Dest Conservative Fund: Service Class $ 4,767,563 0.1% 422 $ (312,318) (28) Nationwide Invest Dest Moderate Fund: Service Class $ 28,275,919 0.8% 2,094 $ 1,032,156 (90) Nationwide Invest Dest Moderately Aggressive Fund: Srvc Cl $ 16,533,719 0.5% 1,383 $ (1,149,103) (27) Nationwide Invest Dest Moderately Conservative Fund: Srvc Cl $ 6,914,925 0.2% 513 $ (213,746) (23) Neuberger Berman Equity Trust(R) - Genesis Fund $ 45,265,092 1.3% 2,992 $ (7,571,972) (243) Oakmark International Fund (The) Class I $ 20,146,672 0.6% 2,890 $ (1,860,023) (68) Vanguard Total Int'l Stock Index Fund - Institutional Shares $ 12,740,437 0.4% 1,932 $ (9,720) 3 Vanguard(R) Institutional Index Fund - Institutional Shares $ 75,997,903 2.2% 3,361 $ 11,104,423 165 Outstanding Plan Loans $ 12,875,546 Total $ 585,703,826 16.8% $ 27,058,070 Section IV 25
Detail of Variable Accounts INVESTMENT PROVIDER MUTUAL FUNDS T. ROWE PRICE Value 2014 Percent of Total Plan Assets Number of People Change in Value 2013-2014 Change in Number of People T. Rowe Price Capital Appreciation Fund $ 49,876,976 1.4% 1,454 $ 4,876,653 (27) T. Rowe Price Dividend Growth Fund $ 4,241,821 0.1% 208 $ 1,234,472 53 T. Rowe Price Emerging Markets Bond Fund $ 1,494,205 0.0% 133 $ 529,313 32 T. Rowe Price Equity Income Fund $ 35,141,466 1.0% 1,150 $ 966,232 (57) T. Rowe Price Equity Index Trust Class C $ 27,671,003 0.8% 898 $ 2,716,484 (8) T. Rowe Price Growth Stock Fund $ 52,497,877 1.5% 1,742 $ 1,071,704 (62) T. Rowe Price Health Sciences Fund $ 12,206,531 0.4% 529 $ 5,551,802 151 T. Rowe Price International Growth and Income Fund $ 21,709,191 0.6% 1,287 $ (2,124,813) (46) T. Rowe Price Media and Telecommunications Fund $ 2,195,323 0.1% 229 $ 117,214 40 T. Rowe Price Mid-Cap Growth Fund $ 41,105,586 1.2% 1,515 $ 3,235,860 (19) T. Rowe Price Mid-Cap Value Fund $ 27,070,908 0.8% 1,106 $ 1,998,104 (39) T. Rowe Price New Horizons Fund $ 27,325,579 0.8% 988 $ (334,608) (43) T. Rowe Price New Income Fund $ 6,860,503 0.2% 254 $ 1,523,512 5 T. Rowe Price Science and Technology Fund $ 9,014,120 0.3% 819 $ 711,219 (12) T. Rowe Price Small-Cap Stock Fund $ 10,685,854 0.3% 661 $ 563,914 (7) T. Rowe Price Small-Cap Value Fund $ 17,995,795 0.5% 885 $ (1,705,478) (38) T. Rowe Price Spectrum Income Fund $ 27,958,344 0.8% 1,048 $ (792,803) (66) T. Rowe Price Retirement Income Active Trust A $ 4,186,508 0.1% 93 $ (194,724) (2) T. Rowe Price Retirement 2005 Active Trust A $ 1,932,108 0.1% 42 $ 136,727 1 T. Rowe Price Retirement 2010 Active Trust A $ 8,739,343 0.3% 108 $ 222,876 (12) T. Rowe Price Retirement 2015 Active Trust A $ 16,357,356 0.5% 284 $ 417,331 16 T. Rowe Price Retirement 2020 Active Trust A $ 21,316,171 0.6% 405 $ 2,883,361 43 T. Rowe Price Retirement 2025 Active Trust A $ 10,138,842 0.3% 369 $ 206,006 75 T. Rowe Price Retirement 2030 Active Trust A $ 11,601,593 0.3% 405 $ 2,110,360 80 T. Rowe Price Retirement 2035 Active Trust A $ 4,118,417 0.1% 293 $ 782,729 82 T. Rowe Price Retirement 2040 Active Trust A $ 5,058,776 0.1% 263 $ 820,855 36 T. Rowe Price Retirement 2045 Active Trust A $ 1,485,716 0.0% 215 $ 319,660 73 T. Rowe Price Retirement 2050 Active Trust A $ 781,532 0.0% 171 $ 250,928 71 T. Rowe Price Retirement 2055 Active Trust A $ 589,462 0.0% 115 $ 133,509 53 T. Rowe Price Loan Fund $ 2,797,021 T. Rowe Price Deemed Loan Fund $ 263,407 Total $ 464,417,336 13.4% $ 28,228,398 Plan Total $ 1,960,397,892 56.4% $ 128,300,668 * Note: 2013-56% of plan assets were variable accounts. Section IV 26
SECTION V 12/31/2014 INVESTMENT PERFORMANCE REPORT Section V 27
Quarterly Performance Report As of December 31, 2014 It is the policy of the Department of Financial Services (DFS) to make available a broad range of investment options that have varying degrees of risk and return. The DFS has responsibility for ensuring that a variety of reasonable investment options are available, that information regarding these options is available to participants, and that program investment management expenses are kept to a minimum. The State of Florida s 457(b) Government Deferred Compensation Plan is a participant directed investment program. The DFS has an established Investment Policy for Product Selection and Retention (IPPSR) that establishes the investment standards for the Government Employees Deferred Compensation Plan, adopts criteria for the selection and retention of the Plan s investment options, and provides a method for the quarterly evaluation and monitoring of the investment options. Copies of the IPPSR and product evaluations are available upon request. For more information, you may contact our office at 850-413-3162 or toll-free at 1-877-299-8002. You may also visit our website at www.myfloridadeferredcomp.com. The numbers discussed in this document are performance as of the date indicated. Past performance does not guarantee future results. To find more detailed information on products listed in this report contact the Investment Company directly. A prospectus can be obtained from the Investment Company and should be read carefully before investing. Page 28
Company Communications. The Investment Providers in the program offer a variety of methods to assist in retirement planning goals. Companies offering face-to-face representatives, phone, and internet services are Empower Retirement, Nationwide Retirement Solutions, VALIC, and Voya. T. Rowe Price representatives are available via telephone and internet. To enroll the following options are available: Click the button on the Bureau of Deferred Compensation website (www.myfloridadeferredcomp.com) and complete and submit the EZ Enrollment Form electronically; Fax your EZ Enrollment form to 850-488-7186, or scan/email to deferredcompensation@fldfs.com (documents scanned or e-mailed should be encrypted to protect personal information); Enroll online with Nationwide, Empower Retirement, VALIC, and/or Voya; or Contact one or more of the 5 Investment Providers by phone to request an enrollment package to complete and return. Investment Options Available. The Investment Providers offer a wide variety of mutual funds and guarantee of principal and interest accounts (see pg. 10 & 11 for definitions). Qualified Default Investment Alternatives (QDIA). Each Investment Provider offers a menu of Target Date Funds (TDF) used to default investment based on the participant s age and time to retirement. These TDFs qualify under the U.S. Department of Labor regulations as QDIA by acting as a single investment capable of meeting a participant s longterm retirement savings needs. Fees. The Investment Management Fee is a fee charged by the mutual fund company itself and not the Investment Provider and is included in the return. The investment management fee is important and should be considered when choosing a Company. Customer Service. Customer service is a priority of the Bureau of Deferred Compensation and each Investment Provider within the program. Please contact the Bureau of Deferred Compensation toll free at 1-877-299-8002 with any concerns. Investment Advice. All of our Providers offer free consultation upon enrollment in the Deferred Compensation program. Nationwide, VALIC, and Empower Retirement offer advisory services. These services are available to participants for a fee. Please contact Nationwide, VALIC, or Empower Retirement for any further questions about these new services. Page 29
Column Explanations (Needed for pages 3-9) Investment Providers are the financial service providers that offer investments through the Deferred Compensation Plan. The Plan features five traditional investment companies and one online brokerage service company. Toll-free telephone numbers and web addresses are provided for easy access. Products are the individual mutual funds, Target Date Funds, deposit accounts, and other investments offered by the Investment Company. Morningstar Fund Category identifies what type of stocks or bonds are held within that particular mutual fund. The definitions for all of these Morningstar fund categories can be found on page 10 of this document. Index is a comparable standard for that particular mutual fund category and is listed below each mutual fund in italics. Ticker Symbol is a system of letters used to identify the mutual fund in various types of media such as newspapers, websites, etc. Star Rating is the 5-year Morningstar Star rating of a fund s risk-adjusted return as related to similar funds. Funds are rated from one to five stars, with the top 10% of performers in each Morningstar Category receiving 5 stars and the bottom 10% of performers receiving 1 star. The Morningstar Star Rating is used for identifying funds worthy of further research, but should not be considered buy or sell recommendations. Funds with a Star Rating less than 3 are being reviewed for possible termination in the Deferred Compensation program. Inception Date is the day a fund begins offering shares is known and identifies the beginning of a new mutual fund. Historical Returns are the 12 month, 3, 5, and 10 year returns detailing the gain or loss from an investment over that time period. The historical return should be equal to or greater than the index or Morningstar Category returns over the same period of time. However, returns reflect historical performance and should not be considered indicative of future performance. Fees include the portfolio manager s compensation and other expenses associated with operating the mutual fund. The fee is stated as a percentage of the fund s average daily net asset value and is assessed before any returns are paid to investors. The expense as a dollar amount of the fee will vary due to factors such as account balance and rate of return. For example, the dollar amount of the fee for a $1,000 account with an Investment Management Fee of 0.93% would be $9.30 (without any type of fluctuation in the fee or trading activity). A portion of the Investment Management Fee may be reimbursed to our Investment Companies for offering a particular fund. A portion of these fees -- $1.20 per participant per month -- funds the State of Florida Deferred Compensation Program. Page 30
STATE OF FLORIDA 457(b) DEFERRED COMPENSATION PLAN INVESTMENT PRODUCT PERFORMANCE REPORT HISTORICAL AVERAGE ANNUAL TOTAL RETURNS STATE OF FLORIDA BUREAU OF DEFERRED COMPENSATION TALLAHASSEE 850-413-3162 or toll free 1-877-299-8002 www.myfloridadeferredcomp.com * Fund names with respective 'ticker symbol' are the variable investment products offered in the Deferred Compensation Plan. * Immediately below the fund name in bold is its Morningstar Category. * After the Morningstar Category, and in italics is the benchmark index identified by the Fund to measures its performance. * Comparing the Fund against its Morningstar Category and benchmark index will give an indication of fund performance. * The Star Rating is determined by comparing a fund's risk adjusted returns with all other funds in the same category. A rating is then assigned (5 = best, 1 = worst). * Short-term and excessive trading fees may apply. Please see the prospectus of the mutual fund for more information. Period Ending: 12/31/2014 Ticker Symbol 5 yr Star Rating Historical Returns (Net of Fees) 12 Mo 3YR 5YR 10YR Inception date (%) (%) (%) (%) (%) Investment Provider & Product Dollars Per $1,000 Nationwide Retirement Solutions 1-800-949-4457 To enroll online: http://www.nrsflorida.com Dodge & Cox Income DODIX *** 01/03/89 5.48 4.64 5.17 5.28 0.43 4.30 Intermediate Term Bond 5.18 3.38 4.78 4.41 Barclays U.S. Aggregate Bond 5.05 1.38 3.91 4.38 Fidelity Puritan FPURX ***** 04/16/47 10.75 14.89 11.73 7.14 0.58 5.80 Moderate Allocation 6.21 11.72 9.43 5.93 S&P 500 13.69 20.41 15.45 7.67 Morgan Stanley Institutional Large-Cap Growth MSEGX ** 01/02/96 6.25 22.02 16.63 9.75 0.96 9.60 Large Growth 10.00 19.41 14.09 7.68 Russell 1000 Growth 13.05 20.26 15.81 8.49 Fidelity Contrafund FCNTX **** 05/17/67 9.56 19.55 14.81 9.66 0.67 6.70 Large Growth 10.00 19.41 14.09 7.68 S&P 500 13.69 20.41 15.45 7.67 Vanguard Institutional Index VINIX **** 07/31/90 13.65 20.38 15.43 7.68 0.04 0.40 Large Blend 10.96 19.00 13.88 7.02 S&P 500 13.69 20.41 15.45 7.67 American Century Equity Growth BEQGX ***** 05/09/91 13.34 20.57 15.95 7.59 0.68 6.80 Large Blend 10.96 19.00 13.88 7.02 S&P 500 13.69 20.41 15.45 7.67 Invesco Growth & Income ACGIX ** 08/01/46 10.15 19.09 13.25 7.45 0.83 8.30 Large Value 10.21 18.33 13.45 6.65 Russell 1000 Value 13.45 20.89 15.42 7.30 American Century Equity Income TWEIX *** 08/01/94 12.47 14.43 11.94 6.99 0.94 9.40 Large Value 10.21 18.33 13.45 6.65 Russell 3000 Value 12.70 20.68 15.34 7.26 American Century Heritage TWHIX *** 11/10/87 8.16 18.03 15.09 11.99 1.00 10.00 Mid-Cap Growth 7.00 18.21 14.76 8.29 Russell Mid-Cap Growth 11.90 20.71 16.94 9.43 Neuberger Berman Genesis NBGEX *** 08/26/93-0.31 14.44 13.73 9.38 1.11 11.10 Mid-Cap Growth 7.00 18.21 14.76 8.29 Russell 2000 Growth 5.60 20.14 16.80 8.54 Federated Mid-Cap Index FMDCX *** 11/05/92 9.25 19.54 16.04 9.27 0.67 6.70 Mid-Cap Blend 7.80 18.99 14.77 7.88 S&P Mid-Cap 400 9.77 19.99 16.54 9.71 JP Morgan Mid-Cap Value JMVSX ***** 11/01/97 14.85 22.03 17.98 9.75 1.14 11.40 Mid-Cap Value 9.31 19.93 15.05 8.09 Russell Mid-Cap Value 14.75 21.98 17.43 9.43 Fidelity Advisor Small-Cap FSCDX * 09/09/98 8.65 16.76 12.29 8.34 1.01 10.10 Small Blend 3.79 17.85 14.61 7.55 Russell 2000 4.89 19.21 15.55 7.77 Vanguard Total International Stock Index 1 VTSNX *** 11/29/10-4.15 9.29 4.39 4.83 0.42 4.20 Foreign Large Blend -4.98 10.22 5.04 4.48 FTSE Global All Cap ex US -3.39 9.51 4.93 5.79 Oakmark International OAKIX ***** 09/30/92-5.41 16.50 9.56 7.99 0.98 9.80 Foreign Large Blend -4.98 10.22 5.04 4.48 MSCI World ex US -4.32 10.47 5.21 4.64 Fees (These are already included in historical returns) 1 For investments in the Vanguard Total International Stock Index Fund, Nationwide Retirement Services charges a 30 basis point daily asset fee for its administrative services to the plan in addition to the fund fees charged by Vanguard. Expressed as Nationwide Fixed Account Rate Nationwide Bank FDIC Products Fixed Account rates are guaranteed for the current quarter and credited & compounded daily. (Not to fall below 3.50%) Rate Yield Benchmark 4th Quarter 2014 3.50% Liquid Savings 0.34% 0.34% 0.03% 3rd Quarter 2014 3.50% 1 year CD 0.53% 0.53% 2nd Quarter 2014 3.50% 3 Year CD 1.41% 1.42% 1st Quarter 2014 3.50% 5 Year CD 1.98% 2.00% 0.25% 0.90% 1.80% The assets in the guarantee of principal and interest accounts are backed by the financial strength of the insurance companies offering them. Additionally, the Office of Insurance Regulation analyzes the financial condition of the insurance companies on a quarterly basis. *Fees are included in the returns of the Guarantee of Principal and Interest Accounts. Page 31
Period Ending: 12/31/2014 Investment Provider & Product Empower Retirement Ticker Symbol 5 yr Star Rating Historical Returns (Net of Fees) 12 Mo 3YR 5YR 10YR Inception date (%) (%) (%) (%) (%) 1-800-444-9412 To enroll online: https://florida457.com BlackRock Bond Index BMOIX *** 04/01/11 5.88 2.41 4.28 4.64 0.19 1.90 Intermediate Term Bond 5.18 3.38 4.78 4.41 Barclays U.S. Aggregate Bond 5.97 2.66 4.45 4.71 PIMCO Total Return PTRAX *** 09/08/94 4.43 4.00 4.87 5.72 0.71 7.10 Intermediate Term Bond 5.18 3.38 4.78 4.41 Barclays U.S. Aggregate Bond 5.97 2.66 4.45 4.71 BlackRock Capital Appreciation MAFGX ** 06/25/10 8.65 18.51 12.59 7.39 0.83 8.30 Large Growth 10.00 19.41 14.09 7.68 Russell 1000 Growth 13.05 20.26 15.81 8.49 Dreyfus Appreciation DGAGX ** 01/18/84 8.27 13.15 12.44 6.61 0.94 9.40 Large Blend 10.96 19.00 13.88 7.02 S&P 500 13.69 20.41 15.45 7.67 Neuberger Berman Socially Responsive NBSRX **** 03/16/94 10.50 19.21 15.10 7.89 0.86 8.60 Large Value 10.21 18.33 13.45 6.65 S&P 500 13.69 20.41 15.45 7.67 American Funds Washington Mutual AWSHX *** 07/31/52 11.22 18.18 14.90 7.31 0.60 6.00 Large Value 10.21 18.33 13.45 6.65 S&P 500 13.69 20.41 15.45 7.67 Perkins Mid-Cap Value JMCVX ** 08/12/98 9.04 14.85 11.13 8.17 0.74 7.40 Mid-Cap Value 9.31 19.93 15.05 8.09 Russell Mid-Cap Value 14.75 21.98 17.43 9.43 Columbia Acorn ACRNX ** 06/10/70 0.82 15.89 13.35 8.39 0.79 7.90 Mid-Cap Growth 7.00 18.21 14.76 8.29 Russell 2500 7.07 19.97 16.36 8.72 Prudential Jennison Mid-Cap Growth PEGZX *** 12/31/96 9.45 17.67 14.96 10.52 0.77 7.70 Mid-Cap Growth 7.00 18.21 14.76 8.29 Russell Mid-Cap Growth 11.90 20.71 16.94 9.43 Wasatch Small-Cap Growth WAAEX **** 12/08/86 2.61 16.33 15.19 8.07 1.24 12.40 Small Growth 2.44 18.07 15.53 8.05 Russell 2000 Growth 5.60 20.14 16.80 8.54 Vanguard Small-Cap Index VSCIX **** 07/07/97 7.53 20.56 16.90 9.17 0.08 0.80 Small Blend 3.79 17.85 14.61 7.55 CRSP US Small Cap 7.54 20.87 17.28 9.71 Columbia Small-Cap Value CSCZX ** 07/28/95 3.10 15.51 12.80 7.28 1.07 10.70 Small Value 3.34 17.72 13.97 7.40 Russell 2000 Value 4.22 18.29 14.26 6.89 Oppenheimer Developing Markets ODVYX ***** 09/07/05-4.55 7.95 5.66 11.55 1.08 10.80 Diversified Emerging Markets -3.01 4.65 1.81 7.62 MSCI EM -2.19 4.04 1.78 8.43 Artisan International ARTIX **** 12/28/95-0.97 15.84 8.83 7.06 1.20 12.00 Foreign Large Growth -3.92 10.84 6.13 5.11 MSCI EAFE -4.90 11.06 5.33 4.43 Fees (These are already included in historical returns) Expressed as Dollars Per $1,000 Great-West Fixed Account Rate (Not to fall below 0.50%) 4th Quarter 2014 3.00% 3rd Quarter 2014 3.00% 2nd Quarter 2014 3.00% 1st Quarter 2014 3.00% Fixed account rates are guaranteed for the current quarter and credited & compounded daily. The assets in the guarantee of principal and interest accounts are backed by the financial strength of the insurance companies offering them. Additionally, the Office of Insurance Regulation analyzes the financial condition of the insurance companies on a quarterly basis. *Fees are included in the returns of the Guarantee of Principal and Interest Accounts. Profile Funds Offered by Empower Retirement Historical Returns as of 12/31/2014 Historical Returns (Net of Fees) Inception Date 1YR (%) 3YR(%) 5YR(%) 10YR(%) Conservative Profile 11/01/02 5.45 7.33 6.66 5.68 Moderate Profile 11/01/02 5.27 11.77 9.39 6.87 Aggressive Profile 11/01/02 5.60 7.33 12.12 7.21 Fees (These are already included in returns) 0.53 0.80 0.94 Page 32
Period Ending: 12/31/2014 Ticker Symbol 5 yr Star Rating Historical Returns (Net of Fees) 12 Mo 3YR 5YR 10YR Inception date (%) (%) (%) (%) (%) Fees (These are already included in historical returns) Expressed as Investment Provider & Product Dollars Per $1,000 VALIC 1-888-467-3726 To enroll online: http://www.valic.com/floridadcp Franklin US Government Securities FKUSX *** 05/29/70 4.31 1.36 3.36 4.12 0.73 7.30 Intermediate-Term Government 4.73 1.47 3.33 3.94 Barclays US Govt Intermediate 2.52 0.99 2.78 3.76 Prudential Short-Term Corporate Bond PBSMX *** 9/1/1989 1.42 2.50 3.01 3.96 0.76 7.60 Short-Term Bond 1.07 1.70 2.31 2.94 Barclays Credit 1-5 Yr 1.95 2.88 3.42 4.10 American Century Diversified Bond ADFIX *** 12/03/01 6.02 2.84 4.40 4.86 0.60 6.00 Intermediate-Term Bond 5.18 3.38 4.78 4.41 Barclays US Aggregate Bond 5.97 2.66 4.45 4.71 American Century Inflation Adjusted Bond ACITX *** 02/10/97 2.67-0.15 3.48 3.98 0.47 4.70 Inflation-Protected Bond 1.80-0.16 3.19 3.48 Barclays US Treasury TIPS 3.64 0.44 4.11 4.37 MFS Massachusetts Growth Stock MIGHX *** 04/01/05 11.49 19.27 14.46 8.04 0.75 7.50 Large Growth 10.00 19.41 14.09 7.68 Russell 1000 Growth 13.05 20.26 15.81 8.49 Calvert Equity (Socially Responsible) CSIEX ** 08/24/87 11.04 18.71 13.90 7.60 1.23 12.30 Large Growth 10.00 19.41 14.09 7.68 S&P 500 Index 13.69 20.41 15.45 7.67 Vanguard Total Stock Market Index VITSX **** 07/07/97 12.56 20.49 15.70 8.12 0.04 0.40 Large Blend 10.96 19.00 13.88 7.02 CRSP US Total Market 12.58 20.48 15.73 8.19 American Funds Investment Company of America RICEX *** 05/28/02 12.02 19.68 13.27 7.31 0.65 6.50 Large Blend 10.96 19.00 13.88 7.02 S&P 500 13.69 20.41 15.45 7.67 American Funds American Mutual RMFEX **** 06/27/02 12.54 17.33 13.67 7.65 0.66 6.60 Large Value 10.21 18.33 13.45 6.65 S&P 500 13.69 20.41 15.45 7.67 Invesco Mid-Cap Growth VGRJX *** 06/01/10 8.28 18.69 14.20 9.62 0.83 8.30 Mid-Cap Growth 7.00 18.21 14.76 8.29 S&P 500 13.69 20.41 15.45 7.67 Dreyfus Mid-Cap Index PESPX *** 06/19/91 9.37 19.42 15.99 9.24 0.50 5.00 Mid-Cap Blend 7.80 18.99 14.77 7.88 S&P Mid-Cap 400 9.77 19.99 16.54 9.71 Neuberger Berman Real Estate NBRFX *** 05/01/02 23.80 13.37 15.64 9.16 1.04 10.40 Real Estate 28.03 15.23 16.16 7.53 FTSE NAREIT Equity REITs 30.14 16.33 16.88 8.31 Invesco Small-Cap Value VSCAX ***** 06/21/99 7.14 23.71 17.62 11.15 1.12 11.20 Small Value 3.34 17.72 13.97 7.40 S&P 500 13.69 20.41 15.45 7.67 Invesco Small-Cap Growth GTSAX **** 10/18/95 7.67 21.25 17.32 9.70 1.21 12.10 Small Growth 2.44 18.07 15.53 8.05 S&P 500 13.69 20.41 15.45 7.67 Dreyfus Premier Technology Growth DTGRX *** 10/13/97 6.70 17.78 14.24 7.79 1.26 12.60 Technology 12.55 19.69 13.59 8.51 S&P 500 13.69 20.41 15.45 7.67 Ivy Asset Strategy WASYX ** 12/29/95-5.01 12.12 7.39 10.50 0.96 9.60 World Allocation 1.54 8.18 7.14 5.50 Barclays US Aggregate Bond 5.97 2.66 4.45 4.71 American Funds Capital World Bond RCWEX *** 08/15/02 1.68 2.00 3.13 3.82 0.87 8.70 World Bond 1.72 2.56 3.61 4.00 Barcap Global Aggregate 0.59 0.73 2.65 3.60 American Funds EuroPacific REREX *** 06/07/02-2.66 11.72 5.68 6.69 0.84 8.40 Foreign Large Blend -4.98 10.22 5.04 4.48 MSCI ACWI Ex USA -4.32 10.47 5.21 4.64 VALIC Fixed Account Rate (Not to fall below 2.00%) 4th Quarter 2014 2.40% 3rd Quarter 2014 2.40% 2nd Quarter 2014 2.40% 1st Quarter 2014 2.40% Fixed account rates are guaranteed for the current quarter and credited & compounded daily. The assets in the guarantee of principal and interest accounts are backed by the financial strength of the insurance companies offering them. Additionally, the Office of Insurance Regulation analyzes the financial condition of the insurance companies on a quarterly basis. *Fees are included in the returns of the Guarantee of Principal and Interest Accounts. Page 33
Period Ending: 12/31/2014 Investment Provider & Product Ticker Symbol 5 yr Star Rating Historical Returns (Net of Fees) 12 Mo 3YR 5YR 10YR Inception date (%) (%) (%) (%) (%) T. Rowe Price 1-800-893-0269 For exisitng participants: http://www.rps.troweprice.com To enroll online: http://rps.troweprice.com/florida T.Rowe Price New Income PRCIX *** 10/15/73 5.74 3.04 4.49 4.91 0.63 6.30 Intermediate-Term Bond 5.18 3.38 4.78 4.41 Barclays US Aggregate Bond 5.97 2.66 4.45 4.71 T. Rowe Price Spectrum Income RPSIX *** 06/29/90 3.88 5.64 6.13 5.60 0.69 6.90 Multisector Bond 3.63 5.62 6.57 5.66 Barclays US Aggregate Bond 5.97 2.66 4.45 4.71 T. Rowe Price Growth Stock PRGFX **** 04/11/50 8.83 21.68 15.84 8.75 0.69 6.90 Large Growth 10.00 19.41 14.09 7.68 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Equity Index Trust-C N/A N/A 12/31/92 13.58 20.32 15.39 7.64 0.10 1.00 Large Blend 10.96 19.00 13.88 7.02 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Dividend Growth PRDGX *** 12/30/92 12.34 18.92 14.55 7.90 0.66 6.60 Large Blend 10.96 19.00 13.88 7.02 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Equity Income PRFDX *** 10/31/85 7.49 17.81 13.33 6.83 0.67 6.70 Large Value 10.21 18.33 13.45 6.65 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Mid-Cap Growth RPMGX ***** 06/30/92 13.16 20.84 17.42 10.94 0.78 7.80 Mid-Cap Growth 7.00 18.21 14.76 8.29 S&P Mid-Cap 400 9.77 19.99 16.54 9.71 T. Rowe Price Capital Appreciation PRWCX ***** 06/30/86 12.25 16.38 13.16 8.69 0.71 7.10 Moderate Allocation 6.21 11.72 9.43 5.93 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Mid-Cap Value TRMCX *** 06/28/96 10.60 20.29 14.04 9.21 0.80 8.00 Mid-Cap Value 9.31 19.93 15.05 8.09 S&P Mid-Cap 400 9.77 19.99 16.54 9.71 T. Rowe Price New Horizons PRNHX ***** 06/03/60 6.10 22.50 21.43 11.49 0.80 8.00 Small Growth 2.44 18.07 15.53 8.05 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Small-Cap Stock OTCFX ***** 06/01/56 6.90 20.19 18.12 9.81 0.91 9.10 Small Growth 2.44 18.07 15.53 8.05 Russell 2000 4.89 19.21 15.55 7.77 T. Rowe Price Small-Cap Value PRSVX *** 06/30/88 0.14 16.11 14.27 8.34 0.96 9.60 Small Blend 3.79 17.85 14.61 7.55 Russell 2000 4.89 19.21 15.55 7.77 T. Rowe Price Health Sciences PRHSX **** 12/29/95 31.94 38.13 27.75 16.82 0.79 7.90 Health 27.25 31.28 21.57 12.36 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Media & Telecommunications PRMTX **** 10/13/93 4.14 21.62 17.92 14.30 0.80 8.00 Communications 0.69 13.33 10.42 4.78 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Science & Technology Fund PRSCX *** 09/30/87 12.59 19.79 14.76 8.71 0.86 8.60 Technology 12.55 19.69 13.59 8.51 S&P 500 13.69 20.41 15.45 7.67 T. Rowe Price Emerging Markets Bond PREMX *** 12/30/94 3.21 4.64 6.08 7.50 0.94 9.40 Emerging Markets Bond -0.80 2.34 4.92 6.70 JP Morgan EMBI Global 5.53 5.33 7.27 7.68 T. Rowe Price International Growth & Income TRIGX **** 12/21/98-5.32 10.34 5.77 4.83 0.86 8.60 Foreign Large Value -6.32 9.39 4.27 3.54 MSCI EAFE -4.90 11.06 5.33 4.43 Fees (These are already included in historical returns) Expressed as Dollars Per $1,000 VALIC Fixed Account Rate** 4th Quarter 2014 2.00%* 3rd Quarter 2014 2.00%* 2nd Quarter 2014 2.00%* 1st Quarter 2014 2.00%* Fixed account rates are guaranteed for the current quarter and credited & compounded daily. The assets in the guarantee of principal and interest accounts are backed by the financial strength of the insurance companies offering them. Additionally, the Office of Insurance Regulation analyzes the financial condition of the insurance companies on a quarterly basis. *Fees are included in the returns of the Guarantee of Principal and Interest Accounts. **Effective 02/28/2013, T. Rowe Price no longer offers the Stable Value Fund, and that fund was replaced by the VALIC Guarantee of Principal and Interest Account, offered by T. Rowe Price. This rate guaranteed not to drop below 1.50% until December 31, 2016. Page 34
Period Ending: 12/31/2014 Investment Provider & Product Ticker Symbol 5 yr Star Rating Historical Returns (Net of Fees) 12 Mo 3YR 5YR 10YR Inception date (%) (%) (%) (%) (%) VOYA 1-800-282-6295 To enroll online: https://florida457.beready2retire.com VOYA GNMA Income I LEINX **** 08/17/73 5.23 2.22 4.16 4.69 0.66 6.60 Intermediate Government Bond 4.73 1.47 3.33 3.94 Barcap Mortgage Backed Securities Index 6.11 2.36 3.75 4.76 Vanguard Long Term Bond VBLLX **** 03/01/94 19.87 5.81 9.85 7.43 0.07 0.70 Long-Term Bond 11.34 5.20 8.65 6.87 Barclays U.S. Long Gov/Credit Float Adjusted 24.69 4.23 9.86 n/a American Funds American Balanced RLBEX **** 07/26/75 8.86 14.77 12.14 6.94 0.65 6.50 Moderate Allocation 6.21 11.72 9.43 5.93 S&P 500 13.69 20.41 15.45 7.67 American Funds The Growth Fund of America RGAEX *** 12/01/73 9.26 20.80 13.49 8.05 0.68 6.80 Large Growth 10.00 19.41 14.09 7.68 S&P 500 13.69 20.41 15.45 7.67 VOYA US Stock Index Portfolio INGIX **** 05/03/04 13.36 20.12 15.15 7.41 0.27 2.70 Large Blend 10.96 19.00 13.88 7.02 S&P 500 13.69 20.41 15.45 7.67 Pioneer Fund PYODX ** 02/13/28 11.23 17.86 12.75 7.01 0.63 6.30 Large Blend 10.96 19.00 13.88 7.02 S&P 500 13.69 20.41 15.45 7.67 Eaton Vance Large-Cap Value EILVX ** 09/23/31 11.22 18.74 12.08 7.19 0.74 7.40 Large Value 10.21 18.33 13.45 6.65 Russell 1000 Value 13.45 20.89 15.42 7.30 Morgan Stanley Inst Mid-Cap Growth MACGX ** 01/31/97 1.07 15.05 13.42 9.64 0.96 9.60 Mid-Cap Growth 7.00 18.21 14.76 8.29 Russell Mid-Cap Growth 11.90 20.71 16.94 9.43 Vanguard Mid-Cap Index 2 VMCIX **** 05/21/98 13.78 21.29 17.06 9.51 0.28 2.80 Mid-Cap Blend 7.80 18.99 14.77 7.88 CRSP US Mid Cap 13.83 21.57 17.36 9.50 Baron Growth Fund BGRFX **** 12/30/94 4.40 18.91 16.12 8.41 1.30 13.00 Mid-Cap Growth 7.00 18.21 14.76 8.29 Russell 2000 Growth 5.60 20.14 16.80 8.54 Loomis Sayles Small-Cap Growth LSSIX **** 12/31/96 1.06 18.08 17.42 10.79 0.94 9.40 Small Growth 2.44 18.07 15.53 8.05 Russell 2000 Growth 5.60 20.14 16.80 8.54 Allianz NFJ Small-Cap Value PCVAX *** 10/01/91 1.60 13.82 13.46 9.06 1.18 11.80 Small Value 3.34 17.72 13.97 7.40 Russell 2000 Value 4.22 18.29 14.26 6.89 Thornburg International Value TIVRX ** 02/01/05-5.63 8.09 4.61 6.28 0.99 9.90 Foreign Large Growth -3.92 10.84 6.13 5.11 MSCI EAFE -4.90 11.06 5.33 4.43 American Funds New Perspective RNPEX *** 03/13/73 3.18 16.47 10.47 8.07 0.80 8.00 World Stock 2.79 14.11 9.54 6.21 MSCI ACWI 4.16 14.10 9.17 6.09 Fees (These are already included in historical returns) 2 For investments in the Vanguard Mid-Cap Index Fund, Voya charges a 20 basis point daily asset fee for its administrative services to the plan in addition to the fund fees charged by Vanguard. Expressed as Dollars Per $1,000 Voya Fixed Account Rate (Not to fall below 1.80%)* 4th Quarter 2014 2.00% 3rd Quarter 2014 2.00% 2nd Quarter 2014 2.00% 1st Quarter 2014 2.00% Fixed account rates are guaranteed for the current quarter and credited & compounded daily. The assets in the guarantee of principal and interest accounts are backed by the financial strength of the insurance companies offering them. Additionally, the Office of Insurance Regulation analyzes the financial condition of the insurance companies on a quarterly basis. *Fees are included in the returns of the Guarantee of Principal and Interest Accounts. Page 35
Target Date Retirement Funds Historical Returns as of 12/31/2014 American Century products offered by Empower. Vanguard products offered by Voya. Wells Fargo products offred by VALIC. Fidelity Products offered by Nationwide. Retirement Income Ticker Symbol 5-yr Star Rating Inception Date Historical Returns (Net of Fees) 1YR (%) 3YR(%) 5YR(%) 10YR(%) (%) 4.36 7.17 6.53 4.03 Fees (These are already included in historical returns) Expressed as Dollars Per $1,000 Morningstar Lifetime Mod 4.09 6.42 6.67 5.74 American Century One Choice In Ret Inv ARTOX **** 08/31/04 6.20 9.13 8.18 5.63 0.76 7.60 Vanguard Target Rtmt Inc 3 VTINX **** 10/27/03 5.17 6.17 6.47 4.99 0.51 5.10 Wells Fargo Adv DJ Tgt Adm WFLOX * 11/08/99 3.27 2.84 4.10 3.99 0.65 6.50 T. Rowe Price Retirement Income Active Trust N/A *** 01/13/12 3.80 n/a n/a n/a 0.58 5.80 Fidelity Freedom Income FFFAX ** 10/01/96 3.86 4.93 4.88 4.12 0.49 4.90 Target Date 2000-2010 4.10 7.54 6.83 4.49 Morningstar Lifetime Mod 2005 4.71 7.32 7.40 6.16 T. Rowe Price Retirement 2005 Active Trust N/A **** 01/13/12 4.65 n/a n/a n/a 0.58 5.80 Morningstar Lifetime Mod 2010 5.16 8.15 7.97 6.44 Vanguard Target Rtmt 2010 3 VTENX **** 06/07/06 5.56 7.99 7.57 n/a 0.51 5.10 Wells Fargo Adv DJ Tgt 2010 Adm WFLGX * 11/08/99 3.64 3.76 4.74 4.11 0.67 6.70 T. Rowe Price Retirement 2010 Active Trust N/A ***** 01/13/12 8.35 n/a n/a n/a 0.58 5.80 Target Date 2011-2015 4.48 8.41 7.40 4.45 Morningstar Lifetime Mod 2015 5.55 9.15 8.60 6.71 American Century One Choice 2015 Inv ARFIX **** 08/31/04 6.27 9.44 8.43 5.93 0.76 7.60 Vanguard Target Rtmt 2015 3 VTXVX ***** 10/27/03 6.19 9.89 8.55 5.55 0.51 5.10 Wells Fargo Adv DJ Tgt 2015 Adm WFFFX * 06/29/07 3.81 5.08 5.55 n/a 0.68 6.80 T. Rowe Price Retirement 2015 Active Trust N/A ***** 01/13/12 5.02 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2015 FFVFX *** 11/01/03 5.17 9.20 7.72 5.39 0.64 6.40 Target Date 2016-2020 4.72 9.20 7.91 4.72 Morningstar Lifetime Mod 2020 5.87 10.41 9.32 6.97 American Century One Choice 2020 Inv ARBVX **** 05/30/08 6.61 10.19 8.90 n/a 0.79 7.90 Vanguard Target Rtmt 2020 3 VTWNX ***** 06/07/06 6.74 11.32 9.29 n/a 0.52 5.20 Wells Fargo Adv DJ Tgt 2020 Adm WFLPX ** 11/08/99 4.12 6.88 6.64 4.79 0.70 7.00 T. Rowe Price Retirement 2020 Active Trust N/A ***** 01/13/12 5.64 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2020 FFFDX *** 10/17/96 5.34 10.05 8.23 5.42 0.67 6.70 Target Date 2021-2025 5.07 10.98 9.09 5.32 Morningstar Lifetime Mod 2025 6.04 11.91 10.10 7.20 American Century One Choice 2025 Inv ARWIX **** 08/31/04 6.87 10.97 9.38 6.35 0.82 8.20 Vanguard Target Rtmt 2025 3 VTTVX **** 10/27/03 6.79 12.38 9.84 5.83 0.52 5.20 Wells Fargo Adv DJ Tgt 2025 Adm WFTRX ** 06/29/07 4.38 8.78 7.77 n/a 0.70 7.00 T. Rowe Price Retirement 2025 Active Trust N/A ***** 01/13/12 5.99 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2025 FFTWX *** 11/06/03 5.63 11.67 9.06 5.75 0.72 7.20 Target Date 2026-2030 5.04 11.54 9.12 5.10 Morningstar Lifetime Mod 2030 6.01 13.30 10.76 7.39 American Century One Choice 2030 Inv ARCVX **** 05/30/08 7.22 11.90 9.93 n/a 0.84 8.40 Vanguard Target Rtmt 2030 3 VTHRX **** 06/07/06 6.79 13.44 10.37 n/a 0.53 5.30 Wells Fargo Adv DJ Tgt 2030 Adm WFLIX *** 03/01/94 4.71 10.63 8.81 5.52 0.71 7.10 T. Rowe Price Retirement 2030 Active Trust N/A ***** 01/13/12 6.20 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2030 FFFEX *** 10/17/96 5.67 12.31 9.36 5.64 0.79 7.90 Target Date 2031-2035 5.24 13.01 10.11 5.73 Morningstar Lifetime Mod 2035 5.80 14.20 11.15 7.53 American Century One Choice 2035 Inv ARYIX **** 08/31/04 7.56 12.96 10.58 6.75 0.87 8.70 Vanguard Target Rtmt 2035 3 VTTHX **** 10/27/03 6.86 14.50 10.90 6.16 0.53 5.30 Wells Fargo Adv DJ Tgt 2035 Adm WFQWX *** 06/29/07 4.93 12.20 9.64 n/a 0.72 7.20 T. Rowe Price Retirement 2035 Active Trust N/A ***** 01/13/12 6.22 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2035 FFTHX ** 11/06/03 5.75 13.46 9.79 5.78 0.78 7.80 3 For investments in the Vanguard Target Retirement Funds, Voya charges a 35 basis point daily asset fee for its administrative services to the plan in addition to the fund fees charged by Vanguard. Page 36
American Century products offered by Empower. Vanguard products offered by Voya. Wells Fargo products offred by VALIC. Fidelity Products offered by Nationwide. Target Date Retirement Funds Historical Returns as of 12/31/2014 Ticker Symbol 5-yr Star Rating Inception Date Historical Returns (Net of Fees) 1YR (%) 3YR(%) 5YR(%) 10YR(%) (%) Fees (These are already included in historical returns) Expressed as Dollars Per $1,000 Target Date 2036-2040 5.25 12.99 9.83 5.44 Morningstar Lifetime Mod 2040 5.51 14.53 11.24 7.60 American Century One Choice 2040 Inv ARDVX ***** 05/30/08 8.03 13.97 11.17 n/a 0.90 9.00 Vanguard Target Rtmt 2040 4 VFORX **** 06/07/06 6.77 15.08 11.18 n/a 0.53 5.30 Wells Fargo Adv DJ Tgt 2040 Adm WFLWX *** 11/08/99 5.13 13.39 10.28 6.16 0.72 7.20 T. Rowe Price Retirement 2040 Active Trust N/A ***** 01/13/12 6.36 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2040 FFFFX *** 09/06/00 5.71 13.59 9.88 5.73 0.81 8.10 Target Date 2041-2045 5.35 14.20 10.52 6.18 Morningstar Lifetime Mod 2045 5.25 14.48 11.15 7.61 American Century One Choice 2045 Inv AROIX ***** 08/31/04 8.40 14.71 11.58 7.09 0.94 9.40 Vanguard Target Rtmt 2045 4 VTIVX **** 10/27/03 6.78 15.09 11.19 6.44 0.53 5.30 Wells Fargo Adv DJ Tgt 2045 Adm WFQYX *** 06/29/07 5.32 13.98 10.56 n/a 0.72 7.20 T. Rowe Price Retirement 2045 Active Trust N/A ***** 01/13/12 6.44 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2045 FFFGX ** 06/01/06 5.79 13.88 9.98 n/a 0.78 7.80 Target Date 2046-2050 5.42 13.49 10.07 5.83 Morningstar Lifetime Mod 2050 5.00 14.35 11.01 7.60 American Century One Choice 2050 Inv ARFVX **** 05/30/08 8.60 15.07 11.79 n/a 0.95 9.50 Vanguard Target Rtmt 2050 4 VFIFX ***** 06/07/06 6.80 15.08 11.19 n/a 0.53 5.30 Wells Fargo Adv DJ Tgt 2050 Adm WFQDX **** 06/29/07 5.29 14.08 10.64 n/a 0.72 7.20 T. Rowe Price Retirement 2050 Active Trust N/A ***** 01/13/12 6.36 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2050 FFFHX *** 06/01/06 5.78 14.04 9.98 n/a 0.78 7.80 Target Date 2051+ 5.49 14.49 10.06 n/a Morningstar Lifetime Mod 2055 4.74 14.17 10.83 7.55 American Century One Choice 2055 Inv AREVX N/A 03/31/11 8.80 15.37 n/a n/a 0.96 9.60 Vanguard Target Rtmt 2055 4 VFFVX N/A 08/18/10 6.82 15.09 n/a n/a 0.53 5.30 Wells Fargo Adv DJ Tgt 2055 Adm WFLHX N/A 07/01/11 5.35 14.07 n/a n/a 0.72 7.20 T. Rowe Price Retirement 2055 Active Trust N/A ***** 01/13/12 6.38 n/a n/a n/a 0.58 5.80 Fidelity Freedom 2055 FDEEX N/A 06/01/11 5.75 n/a n/a n/a 0.78 7.80 Vanguard Target Rtmt 2060 4 VTTSX N/A 01/19/12 6.79 n/a n/a n/a 0.53 5.30 4 For investments in the Vanguard Target Retirement Funds, Voya charges a 35 basis point daily asset fee for its administrative services to the plan in addition to the fund fees charged by Vanguard. Lifecycle Funds Offered by Nationwide Retirement Solutions Historical Returns as of 12/31/2014 Historical Returns (Net of Fees) Inception Nationwide Retirement Solutions Ticker Symbol Date 1YR (%) 3YR(%) 5YR(%) 10YR(%) Nationwide Investors Conservative Nationwide Investors Moderate Conservative Nationwide Investors Moderate Nationwide Investors Moderate Aggressive Nationwide Investors Aggressive NDCSX 03/31/00 3.57 4.15 4.24 3.78 NSDCX 03/31/00 3.91 7.13 6.33 4.70 NSDMX 03/31/00 3.98 10.05 8.08 5.27 NDMSX 03/31/00 4.25 13.02 9.76 5.87 NDASX 03/31/00 4.39 15.18 10.92 6.07 Fees (already included in returns) 0.91 0.90 0.90 0.89 0.88 On-line Brokerage Service For Broker Assistance: 1-888-393-7272 www.schwab.com To enroll contact Nationwide Retirement Solutions at 1-800-949-4457 Funds available through the self-directed brokerage window have not been selected through any selection process, are not monitored, require investment expertise to prudently manage and have risk of substantial losses. Schwab's PCRA currently provides access to more than 6,000 mutual funds from 400 fund families. Of the 6,000 mutual funds available, more than 3,000 are offered without loads and transaction fees as part of the Schwab Mutual Fund OneSource service, and more than 1,100 are institutional or load-waived funds. Of the 6,000 mutual funds available, approximately 1,500 are no-load funds with transaction fees, and 500 are no load, no transaction fee. For a complete listing of available products offered through Charles Schwab & Co. Inc., visit their website at www.schwab.com. There is a $25 annual fee associated with this account that is paid to Nationwide. Schedule of Commissions and Transaction Fees STOCKS - Stock Commissions per Executed Trade (Includes Exchange Traded Funds) Trading Channel Transaction Fee Electronic Stocks and non-schwab ETFs $8.95 Schwab ETFs $0.00 Broker-Assisted Electronic commission, plus $25 MUTUAL FUNDS Schwab Personal Choice Retirement Account (PCRA) No-Transaction Fee (NTF) Mutual Funds: Trade orders in no-load funds available through Schwab's Mutual Fund OneSource service (including Schwab Funds ), as well as certain other funds, are available with no transaction fees when placed through one of Schwab's electronic or Broker assisted channels. Transaction-Fee Mutual Funds: Trading Channel Purchases Sell Electronic $50 per trade $0 Broker-Assisted Electronic commision, plus $25 service charge per trade $25 service charge per trade Other information for all Mutual Fund Transactions: Some funds may also charge sales and/or redemption fees. Please read the prospectuses for details. Page 37
Explanation of Morningstar Fund Categories Mutual funds do not guarantee a rate of return, nor do they guarantee against loss of money invested. There are two things that will cause the value of a variable fund to increase: 1) the fund is paid interest and/or dividends, which is considered income, or 2) the fund sells a stock or bond at a higher price than it was purchased for, which is considered capital appreciation. Mutual funds differ based on their investment objectives. Some funds seek as much income as possible, while others attempt to increase their value solely through capital appreciation. Many funds attempt to increase in value through both income and capital appreciation. Funds that look to increase in value through income have relatively stable returns (low volatility), while funds that seek capital appreciation have relatively unstable returns (high volatility). Listed below are definitions of various fund objectives. Blend fund A mutual fund whose assets are composed of a combination of stocks, bonds, and money market securities, rather than just one or two of these asset classes (also sometimes called hybrid funds or balanced funds.) Bond fund A mutual fund that invests in bonds, typically with the objective of providing stable income through regular interest payments. Conservative Allocation fund A mutual fund that seeks income and capital appreciation is the secondary objective, by investing in stocks, bonds, and cash. Foreign fund A mutual fund that invests in companies located outside of the United States. Growth fund A mutual fund whose aim is to achieve price appreciation by investing in stocks of established companies. Typically any dividends or income paid to the fund is minimal, as growth companies will retain all or most of their earnings for research and development and reinvest profits. Intermediate Bond fund A mutual fund that invests primarily in corporate and other investment-grade U.S. fixed-income issues. Life-cycle fund A mutual fund that is designed for investors of a certain age or with a specific time horizon for investing. They offer different risk profiles that investors can shift between as their circumstance changes. Multisector Bond fund A mutual fund that invests its assets among several fixed-income sectors, including U.S. government issues, foreign bonds, and high-yield bonds. Moderate Allocation fund A mutual fund that seeks both, capital appreciation and income by investing in stocks, bonds, and cash. Mutual fund An investment company that pools money from shareholders and invests in a variety of securities, such as stocks, bonds and money market instruments. These funds offer investors the advantages of diversification and professional management. Target Date fund A diverse mix of investments like stocks, bonds and cash equivalents that periodically and automatically adjust over time to grow more conservative as you near your target retirement date. Value fund A mutual fund that invests in companies which it determines to be undervalued. Assuming that a company's share price will not remain undervalued indefinitely, the funds look to make money by buying before the expected upturn. Value funds tend to focus on safety rather than growth, and often choose investments providing dividends as well as price appreciation. World fund A mutual fund that invests in companies located throughout the world, including the United States. Large, Mid, or Small Cap Fund Refers to the size of the companies in which the fund is investing. Large capitalization stocks are those companies that have a market capitalization greater than $5 billion. Mid-cap stocks have a market capitalization between $1 billion to $5 billion. Small cap stocks have a market capitalization ranging from $250 million to $1 billion. Page 38
Guarantee of Principal and Interest Products A guarantee of principal and interest product guarantees a rate of return for a specified period of time, usually one quarter (three months). Fees are associated with these products and are included in the returns listed on pages 3-6. Every company offers a guarantee of principal and interest account. Effective February 28, 2013, T. Rowe Price no longer offers the Stable Value fund as one of the options in our plan. The Stable Value fund was replaced by a VALIC fixed interest option, but may not necessarily have the same terms and rates as the current VALIC fixed interest option listed on page 5 of this document. When the term "guaranteed" is used to describe any product in the Plan, it refers to a guarantee made by one of the Investment Companies in the Plan, not the Deferred Compensation Program or the State of Florida. Historical Returns The returns reflect historical performance and should not be considered indicative of future performance. Returns include changes in principal value, reinvested dividends, and capital gain distributions. Investment return and principal value will vary and shares may be worth more or less at redemption than at original price. Read the fund s prospectus carefully for more information on management fees, risk, and other expenses before you enroll in a fund. Fee The fee of the mutual fund offered through the Investment Provider (expense for managing the fund). This fee (expense ratio) is subject to change at any time, within certain limits. The Investment Company is responsible for reporting the most recent expense ratios to the Bureau of Deferred Compensation. A Redemption Fee is a fee charged for selling a mutual fund too quickly after buying. A redemption fee is used to discourage the buying and selling of mutual funds frequently. It is only charged to the investor when a fund is sold within the window of time designated by the mutual fund company. Not all funds will have this fee, but it is important to review each fund s prospectus or call the investment company for more information about fund redemption fees. Page 39
SECTION VI 2015 PARTICIPANT SURVEY REPORT Section VI 40
Dear Participant: In order to best serve Participants, the Bureau of Deferred Compensation is conducting surveys to obtain details of the level of satisfaction with the Plan and Investment Providers. Included with this letter are two surveys that are sent to randomly selected Participants from each Investment Provider. The first survey addresses the Bureau of Deferred Compensation and the second survey addresses the Investment Providers. Responses to these surveys are important and will assist in providing better service to all Participants in the Plan. Please return the completed surveys by April 15, 2015 in the enclosed postage paid envelope. Thank you for your time and effort. We value your opinion. Please include any suggestions or additional information on how the Bureau of Deferred Compensation or your Investment Provider can better serve you. For further assistance, please contact the Deferred Compensation Plan at 877-299-8002 or visit the website at www.myfloridadeferredcomp.com. Sincerely, The Bureau of Deferred Compensation FLORIDA DEPARTMENT OF FINANCIAL SERVICES Division of Treasury Bureau of Deferred Compensation 200 East Gaines Street Tallahassee, Florida 32399 Phone 1-877-299-8002 Fax 850-488-7186 AFFIRMATIVE ACTION EQUAL OPPORTUNITY EMPLOYER
2015 Participant Survey Bureau of Deferred Compensation IP: 1 (Low) 2 3 4 5 (High) 1. Rate the quality of customer service when contacting the Bureau of Deferred Compensation: 2. Do you have an adequate number of Investment Providers to choose from in the Plan? (Nationwide, Empower Retirement, VALIC, Voya, T. Rowe Price) 3. The Bureau of Deferred Compensation communication materials for planning retirement (website, emails, brochures, flyers, etc): 4. How would you prefer to receive your communication materials? 5. How did you become aware of the Deferred Compensation Plan? Yes E-mail No MAIL (USPS) BOTH Co-Worker Human Resources Mail or E-mail Investment Company Other Comments: Please provide your name and contact information. Please provide your name and contact information. Name Phone Email
2015 Participant Survey - Deferred Compensation Office Quality of Customer Service Response Percent 1 - LOW 1.84 2.00 3.68 3.00 19.63 4.00 31.90 5 - HIGH 33.74 Mean: 4.01 Adequate amount of IP choices? Response Percent 1 - LOW 3.68 2.00 4.29 3.00 12.27 4.00 38.04 5 - HIGH 39.88 Mean: 4.08 BDC Communication Materials Response Percent Yes 79.14 No 7.36 Preferred Communication Method Response Percent E-mail 17.18 Mail/USPS 41.10 Both 41.10 Mean: 1.09 Mean: 2.24 How did you discover the Plan? Response Percent Co-Worker 23.93 Human Resources 43.56 Mail or Email 7.36 Investment Company 8.59 Other 11.66 Mean: 2.37
2015 Participant Survey Investment Provider IP: 1 (Low) 2 3 4 5 (High) 1. Quality of customer service you receive from your Investment Provider and its representatives: 2. How would you rate your Investment Provider s website and communication materials for planning your retirement? 3. How would you rate the quantity and quality of investment products in the Plan? 4. Did you know that you do not have to take a distribution from the Plan when you retire or leave employment? YES NO Comments: Please provide your name and contact information. Name Phone Email
2015 Participant Survey - Investment Provider Quality of Customer Service Response Percent 1 - LOW 3.27 2.00 5.88 3.00 18.95 4.00 28.10 5 - HIGH 36.60 Mean: 3.96 IP Website and Communication Materials Response Percent 1- LOW 2.61 2.00 5.88 3.00 20.92 4.00 26.80 5 - HIGH 35.95 Mean: 3.95 Investment Options Quantity and Quality Response Percent 1- LOW 3.27 2.00 5.88 3.00 17.65 4.00 34.64 5 - HIGH 32.68 Mean: 3.93 Leave Funds in the Plan Mean: 1.34 Response Percent Yes 62.75 No 32.68
Dear Participant: In order to best serve Participants, the Deferred Compensation Plan is conducting surveys to obtain details of the level of satisfaction with the Plan and Investment Providers. Included with this letter are two surveys that have been sent to all Participants that are no longer working for the State of Florida. The first survey addresses the Bureau of Deferred Compensation and the second survey addresses the Investment Providers. Responses to these surveys are important and will assist in providing better service to all Participants in the Plan. Please return the completed surveys by April 15, 2015 in the enclosed prepaid envelope. Thank you for your time and effort. We value your opinion. Please include any suggestions or additional information on how the Bureau of Deferred Compensation or your Investment Provider can better serve you. For further assistance, please contact the Deferred Compensation Plan at 877-299-8002 or visit the website at www.myfloridadeferredcomp.com. Sincerely, The Bureau of Deferred Compensation FLORIDA DEPARTMENT OF FINANCIAL SERVICES Division of Treasury Bureau of Deferred Compensation 200 East Gaines Street Tallahassee, Florida 32399 Phone 1-877-299-8002 Fax 850-488-7186 AFFIRMATIVE ACTION EQUAL OPPORTUNITY EMPLOYER
2015 Survey Bureau of Deferred Compensation IP: 1 (Low) 2 3 4 5 (High) 1. Rate the quality of customer service you receive from the Bureau of Deferred Compensation Staff: 2. How valuable was saving through the Deferred Compensation Plan to your total retirement savings? 3. How would you rate the Bureau of Deferred Compensation s communication materials for planning your retirement? 4. Do you have an adequate number of Investment Providers to choose from in the Plan? (Nationwide, Empower Retirement, VALIC, Voya, T. Rowe Price) YES NO 5. Did you know that you may remain in the Deferred Compensation Plan even though you left employment? YES NO Comments: Please provide your name and contact information. Name Phone Email
2015 Prior Employee Survey - Deferred Compensation Office BDC Staff Customer Service Response Percent 1.00 1.61 2.00 2.69 3.00 20.43 4.00 24.73 5.00 41.40 Mean: 4.12 How valuable was the Plan for your retirement savings? Response Percent 1.00 4.30 2.00 2.15 3.00 12.90 4.00 17.74 5.00 61.29 Mean: 4.32 BDC Communcation Materials Response Percent 1.00 3.76 2.00 4.84 3.00 23.12 4.00 29.03 5.00 34.41 Mean: 3.90 Adequate amount of Investment Providers to choose from? Response Percent Yes 87.10 No 9.68 Mean: 1.10 Did you know you remain enrolled after leaving employment? Response Percent Yes 85.48 No 12.90 Mean: 1.13
2015 Survey Investment Provider IP: 1 (worst) 2 3 4 5 (best) 1. Quality of customer service you receive when calling your Investment Provider: 2. Investment Provider communication materials (i.e. emails, newsletters, quarterly statements, etc.): 3. Investment Provider websites: 4. Responsiveness of your Investment Provider s representatives: 5. Do you have an adequate number of investment products to choose from? (Such as the fully liquid, guaranteed principle and rate of return funds offering interest rates of 2.0%-3.5%) Yes No Comments: Please provide your name and contact information. Name Phone Email
2015 Prior Employee Survey - Investment Provider IP Customer Service Mean: 4.15 Response Percent 1.00 0.56 2.00 2.78 3.00 17.22 4.00 31.11 5.00 37.78 IP Communication Materials Response Percent 1.00 3.89 2.00 3.33 3.00 17.78 4.00 36.11 5.00 32.78 Mean: 3.96 IP websites Mean: 3.89 Response Percent 1.00 1.11 2.00 6.11 3.00 19.44 4.00 25.56 5.00 26.67 Rep_ Responsiveness Mean: 4.10 Response Percent 1.00 2.22 2.00 3.89 3.00 14.44 4.00 28.33 5.00 37.78 Adequate Investment Options Response Percent Yes 77.22 No 13.33 Mean: 1.15