2015 ANNUAL PERFORMANCE REPORT. (January 1, 2015 thru December 31, 2015) Prepared By: FIS Omni (Recordkeeper)

Transcription

1 2015 ANNUAL PERFORMANCE REPORT (January 1, 2015 thru December 31, 2015) Prepared By: FIS Omni (Recordkeeper)

2 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.), and the Bureau of Deferred Compensation ( F.S.). As a core function of the Department of Financial Services and the Division of Treasury, the Bureau of Deferred Compensation is to offer an investment program that can effectively demonstrate the safety and security of the financial assets of its participants and the State and to assist state employees with tools to help them prepare for 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 Follow the terms of the plan document The CFO administers the Deferred Compensation Plan, IRC 457(b), a voluntary retirement savings plan for employees of the State of Florida ( 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, ensure security of participant information, monitor performance of all investment options offered in the program, 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.

3 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 12/31/2015 INVESTMENT PERFORMANCE REPORT SECTION V Page PARTICIPANT SURVEY REPORT SECTION VI Page 40

4 SECTION I INVESTMENT PROVIDER INFORMATION and GLOSSARY Section I 1

5 INVESTMENT PROVIDER INFORMATION INVESTMENT PROVIDERS ABBREVIATED IDENTIFIER VALIC VAL Charles Schwab CS Empower EMP 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 Great American Reserve Insurance Company purchased Voyager Life including the Plan assets in May Great West Life & Annuity Life Insurance Company became a Plan Investment Provider in April T. Rowe Price & Associates Investment Company became a Plan Investment Provider in May Fixed annuity Plan assets of Capitol Life were assumed by Security First Life Insurance Company in July Variable annuity Plan assets of Capitol Life were assumed by Security First Life in November American General Financial Group became a Plan Investment Provider in July Metropolitan Life Insurance Company purchased Security First Life in October 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

6 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 Security First Life changed its name to MetLife Investors Investment Company in January AIG purchased American General Financial Group (VALIC) in August 2001, changing their name to AIG-VALIC in January ING-Aetna changed its name to ING in November 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 The Plan assets of MetLife Investors, WAMU and Nationwide Financial Services were assumed by Nationwide Retirement Solutions in January Safeco restructured itself and formed Symetra Financial, a full service investment company, which assumed the Investment Provider role for the Plan in August Symetra Financial withdrew from their role as a Plan Investment Provider on December 31, Symetra Financial participants and assets were rolled into Charles Schwab on January 1, Enrollment in Charles Schwab is through NRS. AIG VALIC changed its name to VALIC in ING became VOYA Financial in GWL became Empower (EMP) in Section I 3

7 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

8 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 refers to mutual funds, target date funds and collective investment trusts. Rates of return are not guaranteed, and rates of return are 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

9 SECTION II ACCOUNTS, DEFERRALS, ASSETS AND DISTRIBUTIONS Section II 6

10 Summary of Participant Accounts December 31, 2015 INVESTMENT PROVIDERS ACTIVE 2015 IN PAYOUT 2015 VALIC (VAL) 14, ,483 14, % TOTAL Change in Accounts Percent Change CHARLES SCHWAB (CS) % EMPOWER (EMP) 9, ,477 10, % VOYA (VOY) 22, ,435 22, % NATIONWIDE RETIREMENT SOLUTIONS (NRS) 25,396 2,121 26,759 27, % T. ROWE PRICE (TRP) 5, ,171 6, % PLAN TOTALS 78,610 4,348 81,125 82,958 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

11 Percentage of Participant Accounts by Investment Provider 2015 VALIC (VAL) TRP 7.92% VAL 17.99% CHARLES SCHWAB (CS) EMPOWER (EMP) CS 0.98% VOYA (VOY) NRS 33.17% EMP 12.78% NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) VOY 27.17% Section II 8

12 Summary of Deferrals INVESTMENT PROVIDERS FIXED 2015 VARIABLE 2015 TOTAL % CHANGE VALIC (VAL) $ 10,178,543 $ 21,737,721 $ 31,163,931 $ 31,916, % EMPOWER (EMP) $ 3,274,021 $ 8,327,320 $ 11,590,703 $ 11,601, % VOYA (VOY) $ 10,672,695 $ 24,828,880 $ 35,316,988 $ 35,501, % NATIONWIDE RETIREMENT SOLUTIONS (NRS) $ 23,852,520 $ 25,518,103 $ 48,140,847 $ 49,370, % T. ROWE PRICE (TRP) $ 1,636,821 $ 21,504,459 $ 22,475,306 $ 23,141, % PLAN TOTALS* $ 49,614,599 $ 101,916,483 $ 148,687,777 $ 151,531, % * 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

13 Total Plan Deferrals 2015 VALIC (VAL) TRP 15.27% VAL 21.06% EMPOWER (EMP) VOYA (VOY) EMP 7.66% NATIONWIDE RETIREMENT SOLUTIONS (NRS) NRS 32.58% VOY 23.43% T. ROWE PRICE (TRP) 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

14 Average Annual Participant Deferrals by Gender and Investment Provider Female Male $7, $6, $6, $5, $4, $3, $2, $2, $4, $1, $1, $2, $3, $2, $3, $4, $1, $0.00 VALIC (VAL) EMPOWER (EMP) VOYA (VOY) NATIONWIDE (NRS) T. ROWE PRICE (TRP) Gender Female Male Deferring Participants 27,954 21,606 Section II 11

15 Deferrals by Investment Provider $30,000,000 $25,000,000 $21,737,721 $24,828,880 $25,518,103 $23,852,520 $21,504,459 Fixed $20,000,000 Variable $15,000,000 $10,000,000 $10,178,543 $8,327,320 $10,672,695 $5,000,000 $3,274,021 $1,636,821 $- VALIC (VAL) EMPOWER (EMP) VOYA (VOY) NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) Percentage of Fixed & Variable Deferrals 32.74% 67.26% FIXED 2015 FIXED 2015 VARIABLE VARIABLE Section II 12

16 Summary of Plan Assets (including present value of annuities) 2015 INVESTMENT PROVIDERS Account Values Annuity Values Total 2014 Total Assets Change in Plan Assets % Change in Plan Assets VALIC (VAL) $ 513,070,098 $ 382,973 $ 513,453,071 $ 509,080,453 $ 4,372, % CHARLES SCHWAB (CS) $ 59,776,030 $ - $ 59,776,030 $ 58,563,393 $ 1,212, % GREAT AMERICAN RESERVE (GAR) (annuities only) $ - $ 2,740,057 $ 2,740,057 $ 3,252,515 $ (512,458) -15.8% EMPOWER (EMP) $ 234,307,295 $ 385,293 $ 234,692,588 $ 232,223,192 $ 2,469, % VOYA (VOY) $ 748,241,229 $ 9,036,369 $ 757,277,598 $ 749,919,046 $ 7,358, % METLIFE INVESTORS (MET) (annuities only) $ - $ 7,705,570 $ 7,705,570 $ 8,683,663 $ (978,093) -11.3% NATIONWIDE FINANCIAL SRVS (NFS) (annuities only) $ - $ 3,953,629 $ 3,953,629 $ 2,246,566 $ 1,707, % NATIONWIDE RETIREMENT SOLUTIONS (NRS) $ 1,486,801,232 $ - $ 1,486,801,232 $ 1,389,627,015 $ 97,174, % T. ROWE PRICE (TRP) $ 524,723,401 $ - $ 524,723,401 $ 523,266,850 $ 1,456, % PLAN TOTALS $ 3,566,919,285 $ 24,203,892 $ 3,591,123,177 $ 3,476,862,692 $ 114,260, % Section II 13

17 Percentage of Plan Assets By Investment Provider (including present value of annuities) 2015 VALIC (VAL) TRP 14.61% VAL 14.30% CS 1.66% GAR 0.08% CHARLES SCHWAB (CS) GREAT AMERICAN RESERVE (GAR) (annuities only) EMPOWER (EMP) 1,389,627, EMP 6.54% VOYA (VOY) NRS 41.40% VOY 21.09% METLIFE INVESTORS (MET) (annuities only) NATIONWIDE FINANCIAL SRVS (NFS) (annuities only) NFS 0.11% MET 0.21% NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) Section II 14

18 2015 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) $ 212,215, % $ 300,854, % $ 513,070,098 CHARLES SCHWAB (CS) $ - 0.0% $ 59,776, % $ 59,776,030 EMPOWER (EMP) $ 92,743, % $ 141,564, % $ 234,307,295 VOYA (VOY) $ 334,675, % $ 413,565, % $ 748,241,229 NATIONWIDE RETIREMENT SOLUTIONS (NRS) $ 905,335, % $ 581,466, % $ 1,486,801,232 T. ROWE PRICE (TRP) $ 58,848, % $ 465,874, % $ 524,723,401 PLAN TOTALS $ 1,603,817, % $ 1,963,101, % $ 3,566,919,285 Section II 15

19 Percentage of Plan Assets By Investment Provider (excluding present value of annuities) 2015 VALIC (VAL) TRP 14.71% VAL 14.38% CHARLES SCHWAB (CS) CS 1.68% EMP 6.57% EMPOWER (EMP) VOYA (VOY) NRS 41.68% VOY 20.98% NATIONWIDE RETIREMENT SOLUTIONS (NRS) T. ROWE PRICE (TRP) Section II 16

20 Summary of Account Distributions INVESTMENT PROVIDERS Distribution Type 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Count VALIC EMPOWER VOYA Hardship Lump Sum ,399 Recurring Loans Approved Total ,933 Hardship Lump Sum Recurring Loans Approved Total ,045 Hardship Lump Sum ,500 Recurring Loans Approved Total ,352 NATIONWIDE RETIREMENT SOLUTIONS Hardship Lump Sum ,673 Recurring Loans Approved ,073 1,180 1,045 4,162 T. ROWE PRICE Hardship Lump Sum Recurring Loans Approved Total ALL INVESTMENT PROVIDERS Hardship Lump Sum 1,639 1,599 1,625 1,485 6,348 Recurring Loans Approved ,995 PLAN TOTALS 2,361 2,483 2,572 2,423 9,839 Section II 17

21 SECTION III DETAIL OF FIXED ACCOUNTS Section III 18

22 Detail of Fixed Accounts VALIC INVESTMENT PROVIDERS VALIC Fixed Interest Option $ 212,215, % 9,821 $ 6,051, Total $ 212,215, % 9,821 $ 6,051, EMPOWER Guaranteed Portfolio Product $ 92,743, % 4,687 $ 4,552, Total $ 92,743, % 4,687 $ 4,552, VOYA Voya Fixed Account - 457/401 $ 334,675, % 13,297 $ 778,086 (250) Total $ 334,675, % 13,297 $ 778,086 (250) NATIONWIDE RETIREMENT SOLUTIONS Fixed Assets $ 4,276, % 538 $ 3,933, NRS Florida Fixed Fund $ 863,707, % 15,379 $ 100,653, Nationwide Bank 1 Yr CD $ 354, % 5 $ 354,438 5 Nationwide Bank 3 Yr CD $ 708, % 15 $ (165,502) (1) Nationwide Bank 5 Yr CD $ 1,609, % 31 $ (997,040) (13) Nationwide Bank Liquid Savings $ 34,679, % 1,917 $ (2,366,950) (183) Total $ 905,335, % 17,885 $ 101,411, T. ROWE PRICE VALIC Fixed Int Option $ 58,842, % 1,119 $ (968) (46) Prime Reserve Fund $ 6, % 2 $ (24) 0 Total $ 58,848, % 1,121 $ (992) (46) Value Percent of Total Plan Assets Number of People Change in Value Change in Number of People PLAN TOTALS $ 1,603,817, % 46,811 $ 112,793, * Note: % of plan assets were fixed accounts. Section III 19

23 SECTION IV DETAIL OF VARIABLE ACCOUNTS Section IV 20

24 Detail of Variable Accounts VALIC INVESTMENT PROVIDER MUTUAL FUNDS Value Percent of Total Plan Assets Number of People Change in Value Change in Number of People American Century Infl-Adj Bond Inv $ 5,869, % 1,149 $ 738, American Century Diversified Bond Inv $ 11,011, % 1,083 $ 2,496, American Funds American Mutual R4 $ 9,726, % 1,442 $ (680,425) 288 American Funds EuroPacific Fund R4 $ 30,734, % 4,691 $ 283, American Funds Inv. Co. of America R4 $ 14,508, % 2,671 $ (363,183) 253 American Target Retirement 2010 R4 $ 55, % 25 $ (12,414) 4 American Target Retirement 2020 R4 $ 1,118, % 101 $ (69,986) 10 American Target Retirement 2030 R4 $ 1,015, % 134 $ 274, American Target Retirement 2040 R4 $ 587, % 119 $ 196, American Target Retirement 2050 R4 $ 545, % 86 $ 194, American Capital World Bond R4 $ 1,749, % 369 $ 142,178 (17) American Target Retirement 2015 R4 $ 548, % 25 $ 35,491 5 American Target Retirement 2025 R4 $ 375, % 77 $ 141, American Target Retirement 2035 R4 $ 299, % 78 $ 218, American Target Retirement 2045 R4 $ 300, % 82 $ 127, American Target Retirement 2055 R4 $ 87, % 41 $ 63, Calvert Equity Portfolio A $ 5,833, % 777 $ 452,515 (14) Dreyfus MidCap Index $ 41,318, % 4,354 $ (1,935,215) 141 Dreyfus Tech Growth A $ 5,766, % 1,322 $ (345,923) 21 Franklin U.S. Government Securities A $ 9,569, % 1,564 $ (462,551) (130) Invesco Mid Cap Growth R5 $ 11,463, % 2,144 $ 34, Invesco Small Cap Growth A $ 13,113, % 2,854 $ (726,783) 458 Invesco Small Cap Value A $ 24,170, % 3,789 $ (4,757,530) 207 Ivy Asset Strategy Y $ 4,096, % 1,140 $ (1,143,054) 419 MFS Mass Invest Growth Stock R3 $ 20,771, % 2,936 $ (1,889,340) (164) Neuberg Ber Real Estate Trust $ 4,461, % 1,529 $ 1,238, Prud Jenn Short-Term Corporate Bond A $ 1,655, % 273 $ (177,673) 33 Vanguard Total Stock Index $ 73,376, % 6,153 $ 4,245, Wells Fargo Advantage DJ Target Total Adm $ 51, % 24 $ (3,375) 12 Outstanding Plan Loans $ 6,672,266 Total $ 300,854, % $ (1,684,719) 2015 Section IV 21

25 Detail of Variable Accounts INVESTMENT PROVIDER MUTUAL FUNDS CHARLES SCHWAB Value 2015 Percent of Total Plan Assets Number of People Change in Value Change in Number of People Exchange Traded Funds (ETFs) $ 9,962, % - $ 239,874 - FDIC Certificates of Deposit & Liquid Savings $ 140, % - $ (124,550) - Corporate Bonds $ 358, % - $ (78,357) - Government Bonds $ 120, % - $ (60,527) - Mutual Funds $ 14,687, % - $ (512,147) - Sweep Money Market $ 10,704, % - $ 2,064,126 - Options $ (1,751) 0.0% - $ 24,943 - Closed End Mutual Funds $ 670, % - $ (106,687) - Real Estate Investment Trusts (REITs) $ 580, % - $ 27,785 - International Stock $ 1,359, % - $ (318,441) - Domestic Stock $ 21,071, % - $ 125,954 - Preferred Stock $ 121, % - $ (69,336) - Total $ 59,776, % $ 1,212,637 Section IV 22

26 Detail of Variable Accounts EMPOWER INVESTMENT PROVIDER MUTUAL FUNDS Value 2015 Percent of Total Plan Assets Number of People Change in Value Change in Number of People American Century One Choice 2020 Inv $ 635, % 138 $ 188, American Century One Choice 2030 Inv $ 501, % 208 $ 190, American Century One Choice 2040 Inv $ 210, % 182 $ 125, American Century One Choice 2055 Inv $ 387, % 280 $ 224, American Century One Choice 2050 Inv $ 245, % 230 $ 105, American Century One Choice 2045 Inv $ 507, % 237 $ 178, American Century One Choice In Ret Inv $ 707, % 124 $ 497, American Century One Choice 2025 Inv $ 1,442, % 271 $ 303, American Century One Choice 2035 Inv $ 762, % 260 $ 289, Aggressive Profile $ 15,660, % 1,735 $ (196,114) (82) Moderate Profile $ 24,606, % 2,101 $ (535,165) (131) Conservative Profile $ 6,539, % 598 $ 232,089 (34) Artisan International Inv $ 5,562, % 1,419 $ (411,559) (56) Oppenheimer Developing Markets Y $ 522, % 953 $ (86,522) (16) Delaware Small Cap Value Instl $ 2,960, % 671 $ 2,960, Vanguard Small Cap Index Instl $ 11,857, % 1,470 $ 718, Wasatch Small Cap Growth $ 714, % 83 $ 94, Hotchkis & Wiley Value Opps Instl $ 4,992, % 1,294 $ 4,992,766 1,294 Prudential Jennison Mid Cap Growth Z $ 10,398, % 1,531 $ 6,097, American Funds Wash Mutual A $ 13,925, % 1,716 $ (604,676) (34) JPMorgan Disciplined Equity A $ 5,133, % 1,250 $ 5,133,388 1,250 BlackRock Capital Appreciation Instl $ 12,849, % 998 $ 819,224 (395) Neuberger Berman Socially Resp Inst $ 8,537, % 871 $ (47,143) (353) Blackrock U.S. Total Bond Index I $ 3,445, % 1,158 $ (699) (17) PIMCO Total Return Admin $ 4,542, % 1,398 $ (617,760) (63) American Century One Choice 2015 Inv $ - 0.0% 0 $ (684,205) (74) Columbia Acorn Fund Z $ - 0.0% 0 $ (6,381,580) (732) Columbia Small Cap Value I Fund Z $ - 0.0% 0 $ (3,465,826) (744) Dreyfus Appreciation Fund $ - 0.0% 0 $ (6,381,256) (1,315) Perkins Mid Cap Value Fund T $ - 0.0% 0 $ (6,063,612) (1,318) Outstanding Plan Loans $ 3,914,374 Total $ 141,564, % $ (2,324,461) Section IV 23

27 Detail of Variable Accounts VOYA INVESTMENT PROVIDER MUTUAL FUNDS Value 2015 Percent of Total Plan Assets Number of People Change in Value Change in Number of People Vanguard Target Retirement 2010 Fund $ 439, % 63 $ (143,966) (4) Vanguard Target Retirement 2015 Fund $ 2,303, % 142 $ (711,937) (17) Vanguard Target Retirement 2020 Fund $ 3,937, % 299 $ 1,028, Vanguard Target Retirement 2025 Fund $ 5,272, % 373 $ 718, Vanguard Target Retirement 2030 Fund $ 2,666, % 361 $ 410, Vanguard Target Retirement 2035 Fund $ 2,057, % 392 $ 531, Vanguard Target Retirement 2040 Fund $ 2,016, % 331 $ 236, Vanguard Target Retirement 2045 Fund $ 1,498, % 372 $ 420, Vanguard Target Retirement 2050 Fund $ 780, % 269 $ 266, Vanguard Target Retirement 2055 Fund $ 266, % 149 $ 72, Vanguard Target Retirement 2060 Fund $ 544, % 60 $ 57, Vanguard Target Retirement Income $ 7,397, % 427 $ (868,035) 5 Vanguard Long-Term Bond Index Fund $ 6,379, % 1,190 $ (384,550) 15 Voya GNMA Income Fund $ 12,053, % 1,902 $ (374,367) (79) Voya Intermediate Bond Fund - Class I $ 807, % 53 $ 807, American Funds American Balanced Fund $ 50,539, % 4,612 $ 190, Dodge & Cox Stock Fund $ 798, % 84 $ 798, Eaton Vance Large-Cap Value Fund $ 19,483, % 2,640 $ (1,131,722) (145) Voya U.S. Stock Index Portfolio $ 66,497, % 5,834 $ 37,053,150 2,632 American Funds The Growth Fund of America $ 77,084, % 7,084 $ 1,363, AllianzGI NFJ Small-Cap Value Fund $ 20,441, % 4,158 $ (3,717,355) (287) Baron Growth Fund - Retail Shares $ 20,051, % 3,062 $ (1,880,703) (150) JPMorgan Mid Cap Growth Fund $ 18,952, % 3,096 $ 18,952,974 3,096 Loomis Sayles Small Cap Growth Fund $ 6,198, % 1,257 $ 2,280, Vanguard Mid-Cap Index Fund $ 18,445, % 2,661 $ 1,130, American Funds New Perspective Fund $ 47,768, % 6,511 $ 683,660 (129) Dodge & Cox International Stock Fund $ 323, % 58 $ 323, Thornburg International Value Fund $ 4,332, % 839 $ 964, Pioneer Fund - Class Y Shares $ - 0.0% 0 $ (40,071,255) (3,042) Morgan Stanley Inst Fund Trust Mid Cap- Growth Port A $ - 0.0% 0 $ (21,634,276) (3,362) Outstanding Plan Loans $ 14,226,550 Total $ 413,565, % $ (2,625,085) Section IV 24

28 Detail of Variable Accounts INVESTMENT PROVIDER MUTUAL FUNDS NATIONWIDE RETIREMENT SOLUTIONS Value 2015 Percent of Total Plan Assets Number of People Change in Value Change in Number of People American Century Equity Growth Fund - Investor Class $ 30,557, % 2,581 $ (2,111,695) 333 American Century Heritage Fund - Investor Class $ 11,558, % 1,015 $ 1,100, Dodge & Cox Income Fund $ 38,120, % 2,495 $ 4,250, Federated Mid-Cap Index Fund - Service Shares $ 22,653, % 1,643 $ (1,725,144) (86) Fidelity Contrafund $ 37,880, % 2,304 $ 4,895, Fidelity Freedom 2015 Fund $ 3,082, % 186 $ (860,466) 10 Fidelity Freedom 2020 Fund $ 7,726, % 390 $ 1,098, Fidelity Freedom 2025 Fund $ 6,066, % 398 $ 1,364, Fidelity Freedom 2030 Fund $ 3,319, % 474 $ 591, Fidelity Freedom 2035 Fund $ 2,270, % 440 $ 728, Fidelity Freedom 2040 Fund $ 1,245, % 451 $ 416, Fidelity Freedom 2045 Fund $ 733, % 434 $ 361, Fidelity Freedom 2050 Fund $ 869, % 583 $ 449, Fidelity Freedom 2055 Fund $ 620, % 885 $ 307, Fidelity Freedom Income Fund $ 942, % 94 $ (234,389) (9) Fidelity Puritan(R) Fund $ 12,236, % 721 $ 1,414, Fidelity(R) Advisor Small Cap Fund - Class A $ 4,715, % 1,055 $ 1,701, Invesco Diversified Dividend Fund - Class R5 $ 21,612, % 1,932 $ 21,612,089 1,932 Invesco Growth and Income Fund - Class A $ 51,137, % 3,188 $ (5,283,803) 223 JPMorgan Mid Cap Value Fund - Select Shares $ 18,234, % 1,456 $ (1,683,638) 13 Morgan Stanley Institutional Fund, Inc. - Growth Portfolio - Class P $ 86,847, % 4,283 $ 7,617, Nationwide Invest Dest Aggressive Fund: Service Class $ 9,658, % 1,354 $ (3,150,320) (139) Nationwide Invest Dest Conservative Fund: Service Class $ 3,569, % 381 $ (1,198,563) (41) Nationwide Invest Dest Moderate Fund: Service Class $ 21,123, % 1,845 $ (7,152,462) (249) Nationwide Invest Dest Moderately Aggressive Fund: Srvc Class $ 12,394, % 1,217 $ (4,139,413) (166) Nationwide Invest Dest Moderately Conservative Fund: Srvc Class $ 5,140, % 449 $ (1,774,177) (64) Neuberger Berman Equity Trust(R) - Genesis Fund $ 40,050, % 2,695 $ (5,214,913) (297) Oakmark International Fund (The) Class I $ 21,104, % 3,245 $ 958, Vanguard Total International Stock Index Fund - Inst Shares $ 14,514, % 2,295 $ 1,774, Vanguard(R) Institutional Index Fund - Institutional Shares $ 77,853, % 3,807 $ 1,855, American Century Equity Income Fund - Investor Class $ - 0.0% 0 $ (22,956,891) (1,580) Outstanding Plan Loans $ 13,624,896 Total $ 581,466, % $ (4,987,093) Section IV 25

29 Detail of Variable Accounts T. ROWE PRICE INVESTMENT PROVIDER MUTUAL FUNDS Value 2015 Percent of Total Plan Assets Number of People Change in Value Change in Number of People T. Rowe Price Capital Appreciation Fund $ 52,564, % 1,425 $ 2,687,563 (29) T. Rowe Price Dividend Growth Fund $ 4,185, % 239 $ (56,083) 31 T. Rowe Price Emerging Markets Bond Fund $ 1,387, % 139 $ (107,001) 6 T. Rowe Price Equity Income Fund $ 29,250, % 1,062 $ (5,890,967) (88) T. Rowe Price Equity Index Trust Class C $ 27,644, % 873 $ (26,311) (25) T. Rowe Price Growth Stock Fund $ 56,238, % 1,720 $ 3,740,302 (22) T. Rowe Price Health Sciences Fund $ 14,805, % 696 $ 2,599, T. Rowe Price International Growth and Income Fund $ 19,508, % 1,216 $ (2,201,100) (71) T. Rowe Price Media and Telecommunications Fund $ 2,962, % 279 $ 766, T. Rowe Price Mid-Cap Growth Fund $ 43,650, % 1,532 $ 2,545, T. Rowe Price Mid-Cap Value Fund $ 24,604, % 1,038 $ (2,466,901) (68) T. Rowe Price New Horizons Fund $ 27,071, % 979 $ (254,519) (9) T. Rowe Price New Income Fund $ 7,018, % 259 $ 158,264 5 T. Rowe Price Science and Technology Fund $ 9,384, % 824 $ 369,988 5 T. Rowe Price Small-Cap Stock Fund $ 10,128, % 649 $ (557,156) (12) T. Rowe Price Small-Cap Value Fund $ 15,282, % 794 $ (2,713,506) (91) T. Rowe Price Spectrum Income Fund $ 25,479, % 971 $ (2,478,832) (77) T. Rowe Price Retirement Income Active Trust A $ 3,044, % 83 $ (1,142,332) (10) T. Rowe Price Retirement 2005 Active Trust A $ 1,988, % 40 $ 56,670 (2) T. Rowe Price Retirement 2010 Active Trust A $ 8,596, % 110 $ (142,894) 2 T. Rowe Price Retirement 2015 Active Trust A $ 15,781, % 275 $ (576,167) (9) T. Rowe Price Retirement 2020 Active Trust A $ 24,045, % 463 $ 2,728, T. Rowe Price Retirement 2025 Active Trust A $ 11,344, % 429 $ 1,206, T. Rowe Price Retirement 2030 Active Trust A $ 12,840, % 467 $ 1,238, T. Rowe Price Retirement 2035 Active Trust A $ 4,509, % 362 $ 390, T. Rowe Price Retirement 2040 Active Trust A $ 5,886, % 332 $ 827, T. Rowe Price Retirement 2045 Active Trust A $ 1,936, % 296 $ 450, T. Rowe Price Retirement 2050 Active Trust A $ 1,083, % 246 $ 301, T. Rowe Price Retirement 2055 Active Trust A $ 718, % 176 $ 129, Outstanding Plan Loans $ 2,934,373 Total $ 465,874, % $ 1,583,598 Plan Total $ 1,963,101, % $ (8,825,122) * Note: % of plan assets were variable accounts. Section IV 26

30 SECTION V 12/31/2015 INVESTMENT PERFORMANCE REPORT Section V 27

31 Quarterly Performance Report As of December 31, 2015 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 or toll-free at You may also visit our website at 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

32 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 ( and complete and submit the EZ Enrollment Form electronically; Fax your EZ Enrollment form to , or scan/ to deferredcompensation@fldfs.com (documents scanned or ed should be encrypted to protect personal information); Enroll online with Nationwide, Empower Retirement, VALIC, and/or Voya; or T. Rowe Price. 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 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

33 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 -- $1.70 per participant per month --funds the State of Florida Deferred Compensation Program. Page 30

34 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 or toll free * 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 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: 12/31/15 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 To enroll online: Dodge & Cox Income DODIX **** 01/03/ Intermediate Term Bond Barclays U.S. Aggregate Bond Fidelity Puritan FPURX ***** 04/16/ Moderate Allocation Morgan Stanley Institutional Large-Cap Growth MSEGX *** 01/02/ Large Growth Russell 1000 Growth Fidelity Contrafund FCNTX **** 05/17/ Large Growth Vanguard Institutional Index VINIX **** 07/31/ Large Blend American Century Equity Growth BEQGX *** 05/09/ Large Blend Invesco Growth & Income ACGIX ** 08/01/ Large Value Russell 1000 Value American Century Equity Income TWEIX *** 08/01/ Large Value Russell 3000 Value American Century Heritage TWHIX *** 11/10/ Mid-Cap Growth Russell Mid-Cap Growth Neuberger Berman Genesis NBGEX **** 08/26/ Mid-Cap Growth Russell Federated Mid-Cap Index FMDCX *** 11/05/ Mid-Cap Blend S&P Mid-Cap JP Morgan Mid-Cap Value JMVSX ***** 11/01/ Mid-Cap Value Russell Mid-Cap Value Fidelity Advisor Small-Cap FSCDX ** 09/09/ Small Blend Russell Vanguard Total International Stock Index 1 VTSNX ** 11/29/ n/a n/a Foreign Large Blend FTSE Global All Cap ex US Oakmark International OAKIX ***** 09/30/ Foreign Large Blend MSCI World ex US 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 % Liquid Savings 0.56% 0.56% 0.14% 3rd Quarter % 1 year CD 0.96% 0.96% 2nd Quarter % 3 Year CD 1.63% 1.64% 1st Quarter % 5 Year CD 2.03% 2.05% 0.70% 1.22% 1.73% 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

35 Period Ending: 12/31/2015 Investment Provider & Product Empower Retirement Ticker Symbol 5 yr Star Rating Historical Returns (Net of Fees) 12 Mo 3YR 5YR 10YR Inception date (%) (%) (%) (%) (%) To enroll online: BlackRock Bond Index BMOIX ** 04/01/ Intermediate Term Bond Barclays U.S. Aggregate Bond PIMCO Total Return PTRAX *** 09/08/ Intermediate Term Bond Barclays U.S. Aggregate Bond BlackRock Capital Appreciation MAFGX *** 06/25/ Large Growth Russell 1000 Growth Neuberger Berman Socially Responsive NBSLX *** 03/16/ Large Growth American Funds Washington Mutual AWSHX **** 07/31/ Large Value Hotchkis & Wiley Value Opportunities HWAIX ***** 08/12/ Mid-Cap Value Prudential Jennison Mid-Cap Growth PEGZX *** 12/31/ Mid-Cap Growth Russell Mid-Cap Growth Wasatch Small-Cap Growth WAAEX *** 12/08/ Small Growth Russell 2000 Growth Vanguard Small-Cap Index VSCIX **** 07/07/ Small Blend CRSP US Small Cap Deleware Small-Cap Value DEVIX *** 07/28/ Small Value Russell 2000 Value Oppenheimer Developing Markets ODVYX **** 09/07/ Diversified Emerging Markets MSCI Emerging Markets Artisan International ARTIX **** 12/28/ Foreign Large Growth MSCI EAFE Fees (These are already included in historical returns) Expressed as Dollars Per $1,000 Empower Fixed Account Rate (Not to fall below 0.50%) 4th Quarter % 3rd Quarter % 2nd Quarter % 1st Quarter % 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 12/31/2015 Historical Returns (Net of Fees) Inception Date 1YR (%) 3YR(%) 5YR(%) 10YR(%) Conservative Profile 11/01/ Moderate Profile 11/01/ Aggressive Profile 11/01/ Fees (These are already included in returns) Page 32

36 Period Ending: 12/31/2015 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 To enroll online: Franklin US Government Securities FKUSX *** 05/29/ Intermediate-Term Government Barclays US Govt Intermediate Prudential Short-Term Corporate Bond PBSMX *** 9/1/ Short-Term Bond Barclays Credit 1-5 Yr American Century Diversified Bond ADFIX *** 12/03/ Intermediate-Term Bond Barclays US Aggregate Bond American Century Inflation Adjusted Bond ACITX *** 02/10/ Inflation-Protected Bond Barclays US Treasury TIPS MFS Massachusetts Growth Stock MIGHX *** 04/01/ Large Growth Russell 1000 Growth Calvert Equity (Socially Responsible) CSIEX ** 08/24/ Large Growth Vanguard Total Stock Market Index VITSX **** 07/07/ Large Blend CRSP US Total Market American Funds Investment Company of America RICEX *** 05/28/ Large Blend American Funds American Mutual RMFEX *** 06/27/ Large Value Invesco Mid-Cap Growth VGRJX *** 06/01/ Mid-Cap Growth Dreyfus Mid-Cap Index PESPX *** 06/19/ Mid-Cap Blend S&P Mid-Cap Neuberger Berman Real Estate NBRFX ** 05/01/ Real Estate FTSE NAREIT Equity REITs Invesco Small-Cap Value VSCAX **** 06/21/ Small Value Invesco Small-Cap Growth GTSAX **** 10/18/ Small Growth Dreyfus Premier Technology Growth DTGRX ** 10/13/ Technology Ivy Asset Strategy WASYX ** 12/29/ World Allocation Barclays US Aggregate Bond American Funds Capital World Bond RCWEX *** 08/15/ World Bond Barcap Global Aggregate American Funds EuroPacific REREX *** 06/07/ Foreign Large Blend MSCI ACWI Ex USA VALIC Fixed Account Rate (Not to fall below 2.00%) 4th Quarter % 3rd Quarter % 2nd Quarter % 1st Quarter % 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

37 Period Ending: 12/31/2015 Investment Provider & Product Ticker Symbol 5 yr Star Rating Historical Returns (Net of Fees) 12 Mo 3YR 5YR 10YR Inception date (%) (%) (%) (%) (%) T. Rowe Price For exisitng participants: To enroll online: T.Rowe Price New Income PRCIX *** 10/15/ Intermediate-Term Bond Barclays US Aggregate Bond T. Rowe Price Spectrum Income RPSIX *** 06/29/ Multisector Bond Barclays US Aggregate Bond T. Rowe Price Growth Stock PRGFX ***** 04/11/ Large Growth T. Rowe Price Equity Index Trust-C N/A N/A 12/31/ Large Blend T. Rowe Price Dividend Growth PRDGX **** 12/30/ Large Blend T. Rowe Price Equity Income PRFDX *** 10/31/ Large Value T. Rowe Price Mid-Cap Growth RPMGX ***** 06/30/ Mid-Cap Growth S&P Mid-Cap T. Rowe Price Capital Appreciation PRWCX ***** 06/30/ Moderate Allocation T. Rowe Price Mid-Cap Value TRMCX *** 06/28/ Mid-Cap Value S&P Mid-Cap T. Rowe Price New Horizons PRNHX ***** 06/03/ Small Growth T. Rowe Price Small-Cap Stock OTCFX **** 06/01/ Small Growth Russell T. Rowe Price Small-Cap Value PRSVX *** 06/30/ Small Blend Russell T. Rowe Price Health Sciences PRHSX ***** 12/29/ Health T. Rowe Price Media & Telecommunications PRMTX ***** 10/13/ Communications T. Rowe Price Science & Technology Fund PRSCX *** 09/30/ Technology T. Rowe Price Emerging Markets Bond PREMX **** 12/30/ Emerging Markets Bond JP Morgan EMBI Global T. Rowe Price International Growth & Income TRIGX *** 12/21/ Foreign Large Value MSCI EAFE Fees (These are already included in historical returns) Expressed as Dollars Per $1,000 VALIC Fixed Account Rate** (Not to fall below 1.50%) 4th Quarter %* 3rd Quarter %* 2nd Quarter %* 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. 1st Quarter %* *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. Page 34

38 Period Ending: 12/31/2015 Investment Provider & Product Ticker Symbol 5 yr Star Rating Historical Returns (Net of Fees) 12 Mo 3YR 5YR 10YR Inception date (%) (%) (%) (%) (%) VOYA To enroll online: VOYA GNMA Income I LEINX ***** 08/17/ Intermediate Government Bond Barclays GNMA VOYA Intermediate Bond IICIX ***** 01/08/ Intermediate Government Bond Barclays US Aggregate Bond Vanguard Long Term Bond VBLLX *** 03/01/ Long-Term Bond Barclays U.S. Long Gov/Credit Float Adjusted American Funds American Balanced RLBEX ***** 07/26/ Moderate Allocation American Funds The Growth Fund of America RGAEX *** 12/01/ Large Growth VOYA US Stock Index Portfolio INGIX **** 05/03/ Large Blend Eaton Vance Large-Cap Value EILVX *** 09/23/ Large Value Russell 1000 Value Dodge and Cox Stock Fund DODGX **** 01/04/ Large Value JPMorgan Mid Cap Growth MACGX **** 01/31/ Mid-Cap Growth Russell Mid-Cap Growth Vanguard Mid-Cap Index 2 VMCIX **** 05/21/ Mid-Cap Blend CRSP US Mid Cap Baron Growth Fund BGRFX **** 12/30/ Mid-Cap Growth Russell 2000 Growth Loomis Sayles Small-Cap Growth LSSIX **** 12/31/ Small Growth Russell 2000 Growth Allianz NFJ Small-Cap Value PCVAX ** 10/01/ Small Value Russell 2000 Value Thornburg International Value TIVRX *** 02/01/ Foreign Large Growth MSCI EAFE Dodge and Cox International Stock Fund DODFX *** 05/01/ Foreign Large Blend MSCI ACWI Ex USA American Funds New Perspective RNPEX **** 03/13/ World Stock MSCI ACWI 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 % 3rd Quarter % 2nd Quarter % 1st Quarter % 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

39 Target Date Retirement Funds Historical Returns as of 12/31/2015 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 Qualified Default Investment Alternatives (QDIA) by acting as a single investment capable of meeting a participant s long-term retirement savings needs. Past performance does not guarantee future results. VALIC offers American Funds products. T. Rowe Price offers T. Rowe Price products. Voya offers Vanguard products. Empower offers American Century products. Nationwide offers Fidelity Products. Retirement Income 1YR (%) 3YR(%) 5YR(%) 10YR(%) (%) Empower: American Century One Choice In Retirement ARTOX **** 08/31/ T. Rowe Price: Retirement Balanced Active Trust N/A *** 01/13/ n/a n/a Voya: Vanguard Target Retirement Income 3 VTINX **** 10/27/ Nationwide: Fidelity Freedom Income FFFAX ** 10/01/ Target Date T. Rowe Price: Retirement 2005 Active Trust N/A **** 01/13/ n/a n/a VALIC: American Funds 2010 RDATX ***** 02/01/ n/a T. Rowe Price: Retirement 2010 Active Trust N/A ***** 01/13/ n/a n/a Voya: Vanguard Target Retirement VTENX **** 06/07/ n/a Target Date VALIC: American Funds 2015 RDBTX ***** 02/01/ n/a T. Rowe Price: Retirement 2015 Active Trust N/A ***** 01/13/ n/a n/a Voya: Vanguard Target Retirement VTXVX ***** 10/27/ Nationwide: Fidelity Freedom 2015 FFVFX *** 11/01/ Target Date VALIC: American Funds 2020 RDCTX ***** 02/01/ n/a T. Rowe Price: Retirement 2020 Active Trust N/A ***** 01/13/ n/a n/a Voya: Vanguard Target Retirement VTWNX ***** 06/07/ n/a Nationwide: Fidelity Freedom 2020 FFFDX *** 10/17/ Empower: American Century One Choice 2020 ARBVX **** 05/30/ n/a Target Date VALIC: American Funds 2025 RDDTX ***** 02/01/ n/a T. Rowe Price: Retirement 2025 Active Trust N/A ***** 01/13/ n/a n/a Voya: Vanguard Target Retirement VTTVX **** 10/27/ Nationwide: Fidelity Freedom 2025 FFTWX *** 11/06/ Empower: American Century One Choice 2025 ARWIX **** 08/31/ Target Date VALIC: American Funds 2030 RDETX ***** 02/01/ n/a T. Rowe Price: Retirement 2030 Active Trust N/A ***** 01/13/ n/a n/a Voya: Vanguard Target Retirement VTHRX **** 06/07/ n/a Nationwide: Fidelity Freedom 2030 FFFEX *** 10/17/ Empower: American Century One Choice 2030 ARCVX **** 05/30/ n/a Target Date Above each time series is the category average return of all Target Date Funds of similar date range as reported to Morningstar. Comparison of the return of a TDF to this average return provides an indication of fund performance. Ticker Symbol Historical Returns (Net of Fees) Fees (These are already included in historical returns) VALIC: American Funds 2035 RDFTX ***** 02/01/ n/a T. Rowe Price: Retirement 2035 Active Trust N/A ***** 01/13/ n/a n/a Voya: Vanguard Target Retirement VTTHX **** 10/27/ Nationwide: Fidelity Freedom 2035 FFTHX ** 11/06/ Empower: American Century One Choice 2035 ARYIX **** 08/31/ 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. 5-yr Star Rating Inception Date Expressed as Dollars Per $1,000 Page 36

40 Target Date Retirement Funds Historical Returns as of 12/31/2015 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 Qualified Default Investment Alternatives (QDIA) by acting as a single investment capable of meeting a participant s long-term retirement savings needs. Past performance does not guarantee future results. VALIC offers American Funds products. T. Rowe Price offers T. Rowe Price products. Voya offers Vanguard products. Empower offers American Century products. Nationwide offers Fidelity Products. Target Date YR (%) 3YR(%) 5YR(%) 10YR(%) (%) VALIC: American Funds 2040 RDGTX ***** 02/01/ n/a T. Rowe Price: Retirement 2040 Active Trust N/A ***** 01/13/ n/a n/a Voya: Vanguard Target Retirement VFORX **** 06/07/ n/a Nationwide: Fidelity Freedom 2040 FFFFX *** 09/06/ Empower: American Century One Choice 2040 ARDVX ***** 05/30/ n/a Target Date VALIC: American Funds 2045 RDHTX ***** 02/01/ n/a T. Rowe Price: Retirement 2045 Active Trust N/A ***** 01/13/ n/a n/a Voya: Vanguard Target Retirement VTIVX **** 10/27/ Empower: American Century One Choice 2045 AROIX ***** 08/31/ Nationwide: Fidelity Freedom 2045 FFFGX ** 06/01/ n/a Target Date Above each time series is the category average return of all Target Date Funds of similar date range as reported to Morningstar. Comparison of the return of a TDF to this average return provides an indication of fund performance. Ticker Symbol VALIC: American Funds 2050 RDITX ***** 02/01/ n/a T. Rowe Price: Retirement 2050 Active Trust N/A ***** 01/13/ n/a n/a Empower: American Century One Choice 2050 ARFVX **** 05/30/ n/a Voya: Vanguard Target Retirement VFIFX ***** 06/07/ n/a Nationwide: Fidelity Freedom 2050 FFFHX *** 06/01/ n/a Target Date n/a Fees (These are already included in historical returns) Expressed as Dollars Per $1,000 VALIC: American Funds 2055 RDJTX ***** 02/01/ n/a T. Rowe Price: Retirement 2055 Active Trust N/A ***** 01/13/ n/a n/a Empower: American Century One Choice 2055 AREVX N/A 03/31/ n/a n/a Voya: Vanguard Target Retirement VFFVX N/A 08/18/ n/a Nationwide: Fidelity Freedom 2055 FDEEX N/A 06/01/ n/a n/a Voya: Vanguard Target Rtmt VTTSX N/A 01/19/ n/a n/a 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. 5-yr Star Rating Inception Date Lifecycle Funds Offered by Nationwide Retirement Solutions Historical Returns (Net of Fees) Nationwide Retirement Solutions Nationwide Investors Conservative Nationwide Investors Moderate Conservative Nationwide Investors Moderate Nationwide Investors Moderate Aggressive Nationwide Investors Aggressive Historical Returns as of 12/31/2015 Historical Returns cept o (Net of Fees) Ticker Symbol Date 1YR (%) 3YR(%) 5YR(%) 10YR(%) NDCSX 03/31/ NSDCX 03/31/ NSDMX 03/31/ NDMSX 03/31/ NDASX 03/31/ Fees (already included in returns) 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 Schwab Personal Choice Retirement Account (PCRA) On-line Brokerage Service For Broker Assistance: To enroll contact Nationwide Retirement Solutions at 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 There is a $25 annual fee associated with this account that is paid to Nationwide. MUTUAL FUNDS No-Transaction Fee (NTF) Mutual Funds: Trade orders in no-load funds available through Schwab's Mutual Fund OneSource service (including Schwab Funds ), as Transaction-Fee Mutual Funds: Trading Channel Purchases Sell Electronic $50 per trade $0 Electronic commision, plus $25 service charge per trade $25 service charge per trade Broker-Assisted 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

41 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. 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. Large, Mid, or Small Cap Stock 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. The mutual fund can also have a Value, Growth, or Blend aspect as noted below. 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. 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. 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. Intermediate Bond fund A mutual fund that invests primarily in corporate and other investment-grade U.S. fixed-income issues. 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. Conservative Allocation fund A mutual fund that seeks income and capital appreciation is the secondary objective, by investing in stocks, bonds, and cash. Moderate Allocation fund A mutual fund that seeks both, capital appreciation and income by investing in stocks, bonds, and cash. 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. Target Date fund A mutual fund that resets the asset mix (stocks, bonds, cash equivalents) in its portfolio according to a selected time frame that is appropriate for a particular investor. A target-date fund is similar to a life-cycle fund except a target-date fund is structured to address some date in the future, such as retirement. Foreign fund A mutual fund that invests in companies located outside of the United States. World fund A mutual fund that invests in companies located throughout the world, including the United States. Page 38

42 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

43 SECTION VI 2016 PARTICIPANT SURVEY REPORT Section VI 40

44 ! " # $ %! $!! & ' # ( )! * + ", - # *. * /! +, (! *, 0 # / - &! : ; < < = = ; > > >? $ A # - & " &! $!! & B # ( )? B # ( C D E F G H I H J K L M N O P Q R O S Q T U V O U O R R O W X T Y Z O [ \ S ] ^ T [ _ ` a b c d e d f g e b h i f j h a c j e j k c e ` l f b m c k f l d n o n p n q r q s h t u v p w t x w t u v w q s d u s u t t u z k q { u r p v } n q r ~ f v p } v n r u p l } t u u y } h v v v p p u u ƒ _ q t n z v ~ g q r u ˆ ~ ˆ ~ _ v Š ˆ Œ ˆ ˆ ˆ Ž Ž Ž š Ž œ œ š œ

45 Ç ± ² ³ µ ¹ º» ¼ 6 ž # > + ", - + $ -! & # > -, Ÿ, Ÿ! " A # $ B +, # (! +! / - B! C B # ( ( * - B ", - # * ( ",! - " A + 2 / " # $. * /! +, (! *, 0 # / - &! ª 1 ½ ¾ À ² «C B # ( ( * - B ", - # * ( ",! - " A + Á Â Ã Ä Å Æ Ë ÇÌ Í È Î É ÍÊ Ï Ð Ñ Ò Ó " > "! Ô Õ Â Ö Õ Ø Ù Ó Ú Ã Ä Û Ü Ù Ý Õ Ú Þ Ù Ý Ä Å Æ Õ Á Â Ã Ä Å Æ Û ß Ù Ý à Ã Ù Û à É Î Õ ß Å á Ù Ñ à â Ù ' # ( (! *, + 0 A! " +! ) # / - # * " (! " * & B # *, " B, - * $ # ( ", - # *? 0 A! " +! ) # / - # * " (! " * & B # *, " B, - * $ # ( ", - # *?

46 2016 Participant Survey - Bureau of Deferred Compensation BDC Customer Service Satisfaction? Response Percent Mean: 3.98 Usefulness of BDC Communication Materials Response Percent Mean: 3.87 Satisfied with variety of IP choices in the Plan? Response Percent YES NO How would you prefer to receive your communication materials? Response Percent MAIL BOTH Mean: 1.11 Mean: 2.15 How did you become aware of the Plan? Response Percent COWORKER HUMAN RESOURCES MAIL OR Mean: 2.37 INVESTMENT PROVIDER 6.80 OTHER 12.93

47 = A B C D E F > G H I J B! " #! # $ # % # & ' " #! # $ ( ) * +, + + % - # # #.! # & / 0 # # , # $ - # & #, + 5 6, * +! $ - # # -! % -! # & K L M N O , + +, :! ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; $ # ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; <! - ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;

48 2016 Participant Survey - Investment Providers Satisfaction with IPs and Representatives Response Percent Correct: 5 Satisfaction with IP website and communication materials Response Percent Correct: 4 Satisfaction with quantity and quality of investment products Response Percent Correct: 4 Did you know that you do not have to take a distribution? Response Percent Yes No Correct: Yes

49 ! " # $! % & ' # & # " " # ( ) % * + #, - $. / %, 0, 1 # -. * #,. 2 " % 1 / ( # " : ; < = = > > < 7 7 * A & B % " / ( $ ( # & # " " # ( C % * C % * D E #! " # $! % & ' # & # " " # ( ) % * + #, - $. / %, F G H I J K L K M N L I O P M Q O H F F J Q L Q R J L G S M I T J R M S K U V U W U X Y X Z O [ \ ] W ^ [ _ ^ [ \ ] ^ X Z K \ Z \ [ [ \ a R X b c \ Y W ] d U X Y e f f M ] W d g ] U Y \ W S d [ \ \ ` d O ] h h ] i ] W W \ \ j F h X [ U a ] k e k l l N i X Y \ m n o p p n e l l n o f f e F ] q o r f n s o o n p m o t u v v w x y u z w { u } z w ~ u ~ ƒ ƒ ~ x z w z y ƒ ~ x

50 š œ ž Ÿ ˆ! $ B /. A % & C! -. % * # " - # " 1 / C # ; 5 - $ 1 /, Š? /. E. E # ' # & # " " # ( ) % * + #, - $. / %, 2 B $, Œ ; C % * *!, / C $. / %, * $. # " / $ B - Ž 4 1 $ " / #. A % & 0, 1 # -. * #,. 2 " % 1 / ( # " ª " # * $ /, /,. E # ' # & # " " # ( ) % * + #, - $. / %, 2 B $, ª ) % * * #,. - 2 B # $ - # + " % 1 / ( # A %! ", $ * # $, ( C %,. $ C. /, & % " * $. /

51 2016 Prior Employee Survey - Bureau of Deferred Compensation Quality of the customer service from the BDC Staff? Response Percent Mean: 4.22 How valuable was the DCP to your total retirement savings? Response Percent Mean: 4.60 How useful were the BDC Communications Materials? Response Percent Mean: 4.11 Are you satisfied with the variety of IP choices? Response Percent YES NO 5.81 Mean: 1.06 Did you know you may remain in the DCP after separation? Response Percent YES NO 8.72 Mean: 1.09