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PerformanceReview

Metropolitan St. Louis SewerDistrict Pension Plan

3rd Quarter 2014

Pavilion Advisory Group Inc.227 W. Monroe Street, Suite 2020Chicago, IL 60606Phone: 312-798-3200Fax: 312-902-1984www.pavilioncorp.com

1 Performance Summary 1

2 Asset Class Diversification 18

3 Manager Evaluation 24

4 Calendar Year Performance 64

5 Capital Markets Review 66

6 Appendix 74

Table of Contents

Performance Summary

1

Performance Summary - September 2014During the third quarter, the Metropolitan St. Louis Sewer District declined -1.9%, outperforming the Policy Benchmark return of -2.3%. On a trailing one-year basis, the Plan returned7.4%, outpacing the Policy Benchmark by 50 basis points.

Asset Class DiversificationThe Finance Committee approved new asset allocation policy targets and allowable asset class ranges at the February 2014 meeting. Current asset allocation was within investment policyranges and very close to targets.

Manager EvaluationDuring the third quarter, the following managers notably outperformed their respective benchmarks: T. Rowe Price Institutional Large-Cap Growth, Kennedy Mid Cap Value,TimesSquare Small Cap Growth Fund, Morgan Stanley International Equity Fund, Brandywine Global Opportunistic Fixed Income, and UBS Trumbull Property Fund. Third quarterperformance was negatively impacted by the following managers as they underperformed their respective benchmarks: Holland Large Cap Growth, Penn Capital, GMO Asset AllocationFund, and PIMCO All Asset Fund.

Capital Markets ReviewIt was a difficult quarter in the capital markets. U.S. large cap equities posted modest gains while small cap equities severely underperformed. International equity declined across foreignmarkets, with developed markets underperforming emerging markets. Fixed income volatility returned to the market highlighted by a flight to quality in long term rates. Local currencyinternational debt performed the poorly due to a strengthening U.S. dollar. An expansion of Russia’s invasion of Ukraine, Israel’s military actions to clear Gaza of missiles and tunnelsused by attackers, and ISIS conquering territory across Iraq caused investors to pull monies out of Europe and Asia for the perceived safety of the U.S. dollar and Treasury bonds.

The rapid ascent of the U.S. dollar sent foreign investment values sharply lower versus their local-currency returns. A wave of economic weakness enveloped Europe, Japan, Brazil, Chinaand many smaller countries. The European Central Bank (ECB) inched closer toward purchasing asset-backed bonds, while further lowering its deposit rate to -0.2%. With the Germaneconomy near a zero-growth rate and countries such as Greece and Spain pleading for an end to austerity, the Eurozone economy offered little near-term outlook for growth. Hopes turnedto the ECB to offer a Federal Reserve style bailout and inflate the flagging economy, though the bank has been reluctant to put plans into action based on German leaders’ protests. Theimpending culmination of the Federal Reserve’s asset purchases was a late-quarter headwind for stocks.

The U.S. economy faced a perplexing mix of economic readings. The unemployment rate fell to 5.9%, though the number of workers leaving the workforce remained dauntingly high.Retail sales were choppy, yet on an upward trend. A steep drop in oil prices, brought on by increased U.S. production, will be a negative for upcoming energy spending, due to fallinggasoline prices, but will be a broader benefit for the economy.

Recommendations or Action ItemsPavilion downgraded PIMCO’s manager rating status from “negative watch” to “sell.” Pavilion initially downgraded PIMCO to “negative watch” in January following the departure of co-CIO Mohamed El-Erian, and noted we would closely monitor the firm for organizational stability, asset flows, and performance. PIMCO has not made clear improvements in these areas,and the departure of Bill Gross creates a multitude of future unknowns for the firm. Pavilion recommends termination of the PIMCO All Asset Fund in the Pension Plan due to poorperformance and organizational issues and instability. The fund has approximately $10.1 million invested as of September 30, 2014.

Pavilion is conducting a hedge fund of funds manager search for two managers. The hedged equity manager search is complete and Pavilion recommends hiring the Lighthouse GlobalLong/Short Equity Fund to replace the PIMCO All Asset fund. The multi-strategy hedge fund of funds is still in progress with additional managers requiring analysis and further duediligence. Pavilion will bring a second recommendation to the Committee when the work is complete and the Secretary-Treasurer has conducted the appropriate due diligence on managersearch projects.

Pension Plan Executive Summary

2

Pension Plan Executive SummaryManager Search - Hedge Fund of FundsPavilion commenced a hedge fund of funds search during the third quarter 2014 to populate the hedge fund allocation in the approved investment policy. We initiated our search processby screening over 300 managers based upon the criteria below:

· Organizational structure and ownership (corporate, employee owned, MWBE, etc.)

· Firm assets under management exceed $1 billion

· Strategy assets exceed $1 billion

· Investment process, philosophy, sector strategy and geographic allocations

· Personnel, resources, due diligence, alignment of interests with clients

· Risk management and “fit” with current policy and approved manager roster

· Number of managers in the fund of funds structure

· Key partnership terms including liquidity, contributions/withdrawals, fees/incentives

· Transparency policy

· Performance, net of fees and incentives

The search process identified seven candidates presented by Pavilion to the St. Louis Metropolitan Sewer District. Three equity long/short specialists and four multi-strategy specialists:

Equity Long/Short Hedge Fund of Funds Finalists1. ABS Global Portfolio2. Lighthouse Global Long/Short Ltd.3. Pointer Offshore, Ltd.

Additional due diligence discovered Pointer Offshore Ltd will be closed to new clients in the fourth quarter, disqualifying them from further consideration. Based upon Pavilion’s analysisand St. Louis Metropolitan Sewer District’s additional due diligence, Lighthouse Global Long/Short Ltd is the recommended manager.

Multi-strategy Hedge Fund of Fund Finalists1. Entrust Capital Diversified Fund Ltd.2. Grosvenor Institutional Partners, Ltd.3. Ironwood International Ltd.4. TeamCo Select Tax-Exempt Partners Fund. Ltd.

Additional due diligence and analysis is continuing on the multi-strategy hedge fund of funds finalists. A recommendation will be presented at a future Finance Committee meeting date.

3

Total Composite Policy Benchmark

0.0

3.0

6.0

9.0

12.0

15.0

18.0

-3.0

-6.0

-9.0

Re

turn

(%)

Quarter YearTo

Date

1Year

3Years

5Years

10Years

SinceInception

-2.3

2.8

6.9

10.8

8.4

6.7

8.3

-1.9

3.3

7.4

10.6

8.3

6.87.8

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Total Composite -1.9 3.3 7.4 10.6 8.3 6.8 7.8 21y 9m

Policy Benchmark -2.3 2.8 6.9 10.8 8.4 6.7 N/A

Performance SummaryTotal Composite vs. Policy BenchmarkAs of September 30, 2014

____________Performance is reported net of fees.See appendix for full description of the policy benchmark.

4

-12.0

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0R

etu

rn

Quarter

YearTo

Date1

Year3

Years5

Years7

Years10

Years

Total Composite -1.9 (89) 3.3 (79) 7.4 (94) 10.6 (94) 8.3 (95) 4.9 (60) 6.8 (46)¢£

5th Percentile 0.2 6.2 13.0 15.8 11.5 6.3 8.0

1st Quartile -0.7 4.9 11.4 14.5 10.6 5.7 7.4

Median -1.1 4.2 10.2 13.6 10.0 5.2 6.8

3rd Quartile -1.5 3.4 9.0 12.6 9.4 4.6 6.4

95th Percentile -2.2 2.2 7.1 10.2 8.2 3.4 5.9

Performance ComparisonAll Public Plans <= $500 milAs of September 30, 2014

_________________________Performance is reported net of fees.Parentheses contain percentile rankings.Calculation based on monthly periodicity.

5

-12.0

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0R

etu

rn

Quarter

YearTo

Date1

Year3

Years5

Years7

Years10

Years

Total Composite -1.9 (87) 3.3 (82) 7.4 (94) 10.6 (92) 8.3 (94) 4.9 (58) 6.8 (58)¢£

5th Percentile 0.4 6.8 13.0 15.8 11.7 6.3 8.3

1st Quartile -0.7 5.1 11.2 14.4 10.7 5.6 7.7

Median -1.1 4.3 10.2 13.4 10.2 5.1 7.1

3rd Quartile -1.5 3.6 9.0 12.4 9.4 4.6 6.6

95th Percentile -2.1 2.4 7.1 9.0 8.1 3.5 6.0

Performance ComparisonAll Public PlansAs of September 30, 2014

_________________________Performance is reported net of fees.Parentheses contain percentile rankings.Calculation based on monthly periodicity.

6

3 Years 5 Years

5.0

7.0

9.0

11.0

13.0

14.0

Retu

rn (%

)

5.0 5.7 6.4 7.1 7.8 8.5 9.0

Risk (Standard Deviation %)

Policy Benchmark(7.7 , 8.4)

Total Composite(7.8 , 8.3)

5.0

7.0

9.0

11.0

13.0

14.0

Retu

rn (%

)

5.0 5.7 6.4 7.1 7.8 8.5 9.0


Policy Benchmark(6.7 , 10.8)

Total Composite(6.9 , 10.6)

Performance SummaryRisk and Return SummaryAs of September 30, 2014

7

Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Total Composite 250,168,126 100.0 -1.9 3.3 7.4 10.6 8.3 6.8 7.8 21y 9m

Policy Benchmark -2.3 2.8 6.9 10.8 8.4 6.7 N/A

Total Equity Composite 102,579,206 41.0 -1.7 3.5 12.1 N/A N/A N/A 16.2 1y 1m

MSCI AC World IMI -2.7 3.6 11.3 17.4 10.9 8.1 15.9

Domestic Equity Composite 68,026,916 27.2 -0.1 (13) 5.4 (19) 16.1 (15) N/A N/A N/A 19.3 (N/A) 1y 1m

Russell 3000 Index 0.0 (11) 7.0 (8) 17.8 (9) 23.1 (14) 15.8 (12) 8.4 (33) 20.3 (N/A)

Broad Equity Peer Group Median -1.4 3.9 13.6 20.9 14.0 8.0 N/A

Large-Cap Equity Composite 53,317,156 21.3 1.0 (28) 6.7 (40) 18.0 (33) 21.6 (49) 14.3 (49) 8.1 (42) 8.7 (N/A) 11y 4m

Russell 1000 Index 0.7 (35) 8.0 (19) 19.0 (22) 23.2 (26) 15.9 (20) 8.5 (33) 9.1 (N/A)

Large-Cap Equity Peer Group Median 0.1 6.0 16.4 21.5 14.3 7.8 N/A

Small-Cap Equity Composite 14,709,760 5.9 -3.8 (8) 1.0 (7) 9.6 (10) 22.9 (27) 17.1 (11) 11.1 (5) 11.9 (N/A) 11y 4m

Russell 2000 Index -7.4 (65) -4.4 (50) 3.9 (53) 21.3 (47) 14.3 (51) 8.2 (44) 9.8 (N/A)

Small-Cap Equity Peer Group Median -6.6 -4.4 4.2 20.8 14.3 8.0 N/A

International Equity Composite 34,552,290 13.8 -4.7 (31) -0.2 (39) 4.5 (46) N/A N/A N/A 10.2 (N/A) 1y 1m

MSCI AC World ex USA Index -5.3 (52) 0.0 (36) 4.8 (41) 11.8 (60) 6.0 (57) 7.1 (63) 11.1 (N/A)

International Equity Peer Group Median -5.2 -0.8 4.3 12.2 6.3 7.4 N/A

Developed International Equity Composite 27,171,164 10.9 -5.0 (27) -0.7 (34) 4.9 (40) 14.5 (32) 7.4 (38) 6.3 (59) 5.2 (N/A) 15y 5m

MSCI EAFE Index -5.9 (53) -1.4 (44) 4.3 (52) 13.6 (48) 6.6 (55) 6.3 (58) 4.0 (N/A)

Developed International Equity Peer Group Median -5.8 -1.7 4.3 13.6 6.8 6.6 N/A

Emerging International Equity Composite 7,381,126 3.0 -3.5 (44) 1.9 (57) 3.6 (62) 7.7 (60) 4.8 (46) N/A 8.9 (46) 9y 6m

MSCI Emerging Markets Index -3.5 (44) 2.4 (47) 4.3 (52) 7.2 (66) 4.4 (52) 10.7 (37) 9.2 (34)

Emerging Markets Equity Peer Group Median -3.7 2.2 4.4 8.1 4.5 10.0 8.5

Fixed Income Composite 87,074,484 34.8 -1.7 (100) 3.0 (43) 3.3 (45) 4.4 (21) 5.2 (29) 5.4 (10) 5.1 (14) 11y 3m

Barclays Intermediate U.S. Government/Credit 0.0 (37) 2.2 (73) 2.2 (73) 2.0 (82) 3.4 (77) 4.0 (74) 3.8 (74)

Intermediate Duration Fixed Income Peer Group Median -0.1 2.6 3.0 2.9 4.5 4.6 4.4

Performance SummaryTotal Pension Fund Asset Allocation and PerformanceAs of September 30, 2014

_________________________Performance is reported net of fees.

8

Performance SummaryTotal Pension Fund Asset Allocation and PerformanceAs of September 30, 2014

Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Tactical Asset Allocation Composite 25,034,719 10.0 -2.8 2.5 6.9 9.8 7.7 6.7 6.4 11y 4m

65% MSCI World (Net) / 35% BC Aggregate -1.3 4.0 9.3 12.4 8.7 6.6 7.3

Alternatives Composite 10,088,586 4.0 -2.9 4.5 4.8 N/A N/A N/A 6.0 1y 1m

3 Month T-Bills + 3% 0.8 2.3 3.0 3.1 3.1 4.6 3.0

Real Estate Composite 13,188,272 5.3 2.9 7.5 9.6 9.3 10.0 6.7 4.9 8y 4m

NCREIF Fund Index-Open End Diversified Core Equity 0.0 5.4 8.6 10.9 11.3 6.4 4.5

Real Assets Composite 10,896,322 4.4 -8.0 -0.3 2.4 1.9 N/A N/A 1.8 4y 6m

Wellington DIH Multi-Asset Inflation Index -8.1 -1.1 0.4 1.5 2.3 4.9 1.0

Cash Account 1,306,537 0.5 0.0 0.0 0.1 0.1 -0.3 1.5 1.4 11y 4m

BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.1 0.1 1.6 1.5


9

Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Domestic Large-Cap Equity Managers

Vanguard Windsor II 14,123,604 5.6 -0.2 (47) 7.4 (26) 17.7 (34) 22.8 (36) 14.8 (33) 8.0 (39) 6.6 (N/A) 13y 5m

Russell 1000 Value Index -0.2 (47) 8.1 (17) 18.9 (22) 23.9 (22) 15.3 (24) 7.8 (42) 6.6 (N/A)

Large-Cap Value Equity Peer Group Median -0.3 6.1 16.2 21.8 14.0 7.5 N/A

Vanguard Institutional Index Fund 12,433,727 5.0 1.1 (25) 8.3 (15) 19.7 (17) 23.0 (30) 15.7 (24) 8.1 (42) 4.9 (64) 15y

S&P 500 1.1 (25) 8.3 (15) 19.7 (16) 23.0 (29) 15.7 (24) 8.1 (42) 4.9 (65)

Large-Cap Equity Peer Group Median 0.1 6.0 16.4 21.5 14.3 7.8 5.6

T. Rowe Price Inst. Large-Cap Core Growth 13,819,925 5.5 1.8 (29) 4.8 (62) 18.2 (33) 24.6 (11) 17.4 (15) 9.0 (40) 23.9 (N/A) 1y 7m

Russell 1000 Growth Index 1.5 (38) 7.9 (21) 19.1 (24) 22.4 (36) 16.5 (24) 8.9 (42) 21.7 (N/A)

Large-Cap Growth Equity Peer Group Median 1.1 5.5 16.7 21.5 15.1 8.5 N/A

Holland Large Cap Growth 12,939,900 5.2 1.2 (47) 5.2 (55) 15.7 (62) 19.5 (76) 15.1 (51) 8.1 (60) 17.2 (N/A) 1y 7m

Russell 1000 Growth Index 1.5 (38) 7.9 (21) 19.1 (24) 22.4 (36) 16.5 (24) 8.9 (42) 21.7 (N/A)

Large-Cap Growth Equity Peer Group Median 1.1 5.5 16.7 21.5 15.1 8.5 N/A

Domestic Small-Cap Equity Managers

Kennedy Mid Cap Value 8,384,999 3.4 -2.3 (21) 11.9 (1) 20.9 (1) 24.8 (14) 17.7 (7) N/A 11.6 (1) 6y 9m

Russell Midcap Value Index -2.6 (28) 8.2 (7) 17.5 (6) 24.7 (15) 17.2 (10) 10.2 (16) 8.5 (24)

Mid-Cap Value Equity Peer Group Median -4.1 1.6 10.0 21.4 14.6 8.9 7.4

TimesSquare Small Cap Growth Fund 6,324,761 2.5 -5.7 (46) -11.1 (89) -2.9 (88) 20.0 (52) 15.9 (28) 11.6 (6) 9.9 (N/A) 12y 8m

Russell 2000 Growth Index -6.1 (56) -4.0 (33) 3.8 (30) 21.9 (38) 15.5 (34) 9.0 (30) 7.6 (N/A)

Small-Cap Growth Equity Peer Group Median -5.8 -5.5 1.9 20.1 14.7 8.0 N/A

Developed International Equity Manager

Morgan Stanley International Equity Fund I 27,171,164 10.9 -5.0 (27) -0.8 (36) 4.7 (43) 14.5 (33) 7.4 (38) 6.5 (55) 5.2 (57) 9y 6m

MSCI EAFE Index -5.9 (53) -1.4 (44) 4.3 (52) 13.6 (48) 6.6 (55) 6.3 (58) 5.1 (62)

International Equity Peer Group Median -5.8 -1.7 4.3 13.6 6.8 6.6 5.4

Emerging Markets Equity Manager

Morgan Stanley Emerging Markets Fund I 7,381,126 3.0 -3.5 (44) 1.9 (57) 3.7 (61) 7.7 (59) 4.8 (45) 10.4 (42) 8.9 (45) 9y 6m

MSCI Emerging Markets Index -3.5 (44) 2.4 (47) 4.3 (52) 7.2 (66) 4.4 (52) 10.7 (37) 9.2 (34)

Emerging Markets Equity Peer Group Median -3.7 2.2 4.4 8.1 4.5 10.0 8.5

Performance SummaryManager Asset Allocation and PerformanceAs of September 30, 2014


10


Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Fixed Income Managers

Income Research 35,723,915 14.3 -0.1 (40) 2.5 (63) 2.5 (65) 2.9 (51) 4.0 (60) 4.9 (25) 5.4 (24) 13y 3m

Barclays Intermediate U.S. Government/Credit 0.0 (37) 2.2 (73) 2.2 (73) 2.0 (82) 3.4 (77) 4.0 (74) 4.7 (60)

Intermediate Duration Fixed Income Peer Group Median -0.1 2.6 3.0 2.9 4.5 4.6 4.8

Penn Capital 12,764,809 5.1 -2.2 (81) 2.0 (93) 5.6 (88) 8.4 (93) 8.9 (84) N/A 6.6 (87) 9y 3m

BofA Merrill Lynch US High Yield, Cash Pay Index -1.9 (54) 3.5 (40) 7.1 (39) 10.9 (46) 10.3 (35) 8.1 (25) 8.2 (25)

High Yield Fixed Income Peer Group Median -1.9 3.3 6.9 10.8 10.0 7.6 7.7

Loomis Credit Asset Fund 4,986,911 2.0 -0.6 (55) 3.9 (13) 6.3 (9) 8.8 (1) N/A N/A 8.0 (1) 4y 7m

50% BC Credit / 25% S&P LSTA / 25% BY High Yield -0.6 (54) 4.2 (12) 6.1 (9) 6.8 (10) 7.3 (1) 6.2 (9) 6.9 (1)

Alternative Credit Focus Funds Peer Group Median -0.5 1.8 3.6 4.1 5.2 4.3 4.4

Brandywine Global Opportunistic Fixed Income 22,103,853 8.8 -2.0 (54) 6.2 (9) 5.9 (21) 5.6 (20) 7.6 (3) N/A 6.7 (9) 9y 9m

Citigroup World Government Bond -3.8 (82) 1.0 (82) -0.1 (91) -0.5 (95) 1.6 (91) 4.1 (71) 3.3 (77)

Global Fixed Income Peer Group Median -1.8 2.5 3.3 2.9 4.2 4.9 4.3

Pictet Emerging Local Currency Debt Fund 11,494,996 4.6 -5.5 (43) -1.0 (72) -2.5 (70) 0.8 (85) N/A N/A 0.8 (85) 3y

JPM GBI-EM Global Diversified -5.7 (58) 0.0 (42) -1.5 (42) 2.2 (40) 4.4 (15) 8.8 (N/A) 2.2 (40)

Emerging Markets (LC) Fixed Income Peer Group Median -5.6 -0.3 -1.9 1.9 3.8 N/A 1.9

Tactical Asset Allocation Manager

GMO Asset Allocation Fund 25,034,719 10.0 -2.8 (67) 2.5 (59) 6.9 (62) 9.8 (61) 7.7 (66) 7.0 (30) 6.0 (37) 8y 2m

65% MSCI World (Net) / 35% BC Aggregate -1.3 (35) 4.0 (37) 9.3 (35) 12.4 (33) 8.7 (47) 6.6 (38) 5.6 (50)

IM Flexible Portfolio (MF) Median -1.9 3.2 7.8 10.7 8.6 6.1 5.6


11


Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Alternatives Manager

PIMCO All Asset Fund I 10,088,586 4.0 -2.9 3.8 5.2 8.0 7.5 6.4 6.1 8y 9m

Barclays U.S. Treasury Inflation Notes: 1-10 Year -2.0 1.9 0.6 0.9 3.4 4.0 4.2

Real Estate Manager

UBS Trumbull Property Fund 13,188,272 5.3 2.9 7.5 9.6 9.3 10.0 6.7 4.9 8y 4m

NCREIF Fund Index-Open End Diversified Core Equity 0.0 5.4 8.6 10.9 11.3 6.4 4.5

Real Asset Manager

Wellington Diversified Inflation Hedges 10,896,322 4.4 -8.0 -0.3 2.4 1.9 N/A N/A 1.8 4y 6m

Wellington DIH Multi-Asset Inflation Index -8.1 -1.1 0.4 1.5 2.3 4.9 1.0

Cash Account 1,306,537 0.5 0.0 0.0 0.1 0.1 -0.3 1.5 1.4 11y 4m

BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.1 0.1 1.6 1.5

Total Composite 250,168,126 100.0 -1.9 3.3 7.4 10.6 8.3 6.8 7.8 21y 9m


12

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

28.0

Retu

rn (%

)

12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0


Russell 2000 Growth

Russell Midcap Value

Russell 1000 Growth

S&P 500 Russell 1000 Value

Holland Large Cap Growth

Kennedy Mid Cap Value

TimesSquare Small Cap Growth

Vanguard Windsor II Fund

Vanguard Institutional Index Fund

T. Rowe Price Inst. Large-Cap Core Growth

Performance SummaryRisk and Return Summary - Equity Managers5 Years Ending September 30, 2014

13

0.0

1.5

3.0

4.5

6.0

7.5

9.0

10.5

12.0

Re

turn

(%)

0.0 1.5 3.0 4.5 6.0 7.5 9.0 10.5 12.0 13.5


50% BC Credit / 25% S&P LSTA / 25% BY High Yield

JPM GBI-EM Global Diversified

Citigroup World Government Bond

BofA Merrill Lynch US High Yield, Cash Pay Index

BC Intermediate U.S. Government/Credit

Penn Capital

Income Research

Brandywine Global

Performance SummaryRisk and Return Summary - Fixed Income Managers5 Years Ending September 30, 2014

14

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Re

turn

(%)

-4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0


90 Day U.S. Treasury Bill

Barclays U.S. Treasury Inflation Notes: 1-10 Year

NCREIF Fund Index-Open End Diversified Core Equity

Wellington DIH Multi-Asset Inflation Index

65% MSCI World (Net) / 35% BC Aggregate

UBS TPF

PIMCO All AssetGMO

Performance SummaryRisk and Return Summary - Alternative Managers5 Years Ending September 30, 2014

15

Manager Compliance ChecklistThird Quarter 2014

Managers

Vanguard

Windsor

Vanguard

Institutional

T. Rowe

Price Holland Kennedy TimesSquare

Morgan

Stanley Int'l

Morgan

Stanley EM

Organizational/Product Issues

No material changes to investment team + + + + + + - +No material organizational changes + + + + + + + +

Accounting or regulatory concerns + + + + + + + +

Currently in adherence to guidelines + + + + + + + +

Portfolio characteristics meet stylistic expectations + + + + + + + +

Relative Performance 1

Three-year return better than benchmark - N/A + - + - + +Three-year ranking better than peer group median + + + - + - + -

Five year return better than benchmark - N/A + - + + + +

1 Manager performance is evaluated net of investment management fees.

+ + + + +

Five year ranking better than peer group median + + + - + + + +

Performance status + + + + + + + +

Date performance status changed

Summary status Sell + + + + + + Sell

Date summary status changed 4Q13 4Q13

16

Manager Compliance ChecklistThird Quarter 2014

Managers

Income

Research Penn Loomis

Brandywine

Global Pictet GMO PIMCO UBS Wellington

Organizational/Product Issues

No material changes to investment team + + + - + + - + +No material organizational changes + + + + + + + + +

Accounting or regulatory concerns + + + + + + + + +

Currently in adherence to guidelines + + + + + + + + +

Portfolio characteristics meet stylistic expectations + + + + + + + + +

Relative Performance 1

Three-year return better than benchmark + - + + - - + - +

Three-year ranking better than peer group median - - + + - - N/A N/A N/A

Five year return better than benchmark + - N/A + N/A - + - N/A

1 Manager performance is evaluated net of investment management fees.

Five year return better than benchmark + - N/A + N/A - + - N/A

Five year ranking better than peer group median - - N/A + N/A - N/A N/A N/A

Performance status + - + + - - + + +

Date performance status changed 4Q13 4Q13 3Q14

Summary status + Sell Sell + Sell Sell Sell + +

Date summary status changed 4Q13 4Q13 4Q13 4Q13 4Q13

17

Asset Class Diversification

18

September 30, 2014 : $250,168,126

Target Allocation Actual Allocation Allocation Differences

0.0% 6.0% 12.0% 18.0% 24.0% 30.0% 36.0% 42.0%-6.0 %-12.0 %

Cash Account$1,306,537

Real Asset Composite$10,896,322

Real Estate Composite$13,188,272

Alternatives Composite$10,088,586

Tactical Asset Allocation Composite$25,034,719

Fixed Income Composite$87,074,484

Emerging International Equity Composite$7,381,126

Developed International Equity Composite$27,171,164

Small-Cap Equity Composite$14,709,760

Large-Cap Equity Composite$53,317,156

0.0%

5.0%

5.0%

4.0%

10.0%

35.0%

3.0%

11.0%

6.0%

21.0%

0.5%

4.4%

5.3%

4.0%

10.0%

34.8%

3.0%

10.9%

5.9%

21.3%

0.5%

-0.6 %

0.3%

0.0%

0.0%

-0.2 %

0.0%

-0.1 %

-0.1 %

0.3%

Asset Class DiversificationInvestment Policy AllocationAs of September 30, 2014

19

Asset Class/Type Manager

Total Assets

($, mil.) as of

9/30/2014

Percent of

Total

Target

Allocation

Weighting

Relative to

Target

Allowable

Range

Total Assets

($, mil.) as of

7/1/2014

Large-Cap Equity $53.3 21.3% 21.0% + 0.3% 15 - 25% $55.9

Core Vanguard Institutional $12.4 5.0% 6.0% - 1.0% $12.3

Value Vanguard Windsor $14.1 5.6% 5.0% + 0.6% $16.0

Growth T. Rowe Price $13.8 5.5% 5.0% + 0.5% $13.6

Growth Holland $12.9 5.2% 5.0% + 0.2% $14.0

Small-Cap Equity $14.7 5.9% 6.0% - 0.1% 2 - 8% $15.6

Value Kennedy $8.4 3.4% 3.0% + 0.4% $8.9

Growth TimesSquare $6.3 2.5% 3.0% - 0.5% $6.7

International Equity $34.6 13.8% 14.0% - 0.2% $36.3

Developed Morgan Stanley $27.2 10.9% 11.0% - 0.1% 5 - 15% $28.6

Emerging Markets Morgan Stanley $7.4 3.0% 3.0% - 0.0% 2 - 8% $7.6

Fixed Income $87.1 34.8% 35.0% - 0.2% $88.5

Asset Class DiversificationInvestment Program StructureAs of September 30, 2014

Fixed Income $87.1 34.8% 35.0% - 0.2% $88.5

Domestic Core Income Research $35.7 14.3% 14.0% + 0.3% 10 - 20% $35.7

High Yield Penn Capital $12.8 5.1% 5.0% + 0.1% 0 - 7% $13.0

Opportunistic Credit Loomis $5.0 2.0% 2.0% - 0.0% 0 - 5% $5.0

Global Brandywine Global $22.1 8.8% 9.0% - 0.2% 4 - 14% $22.5

Emerging Markets Debt Pictet $11.5 4.6% 5.0% - 0.4% 0 - 7% $12.2

Tactical $25.0 10.0% 10.0% + 0.0% $25.8

Balanced GMO $25.0 10.0% 10.0% + 0.0% 0 - 12% $25.8

Alternatives $10.1 4.0% 4.0% + 0.0% $10.4

Absolute Return PIMCO $10.1 4.0% 4.0% + 0.0% 0 - 7% $10.4

Hedge Funds TBD $0.0 0.0% -- -- 0 - 20% $0.0

Real Estate $13.2 5.3% 5.0% + 0.3% $12.8

Real Estate UBS Trumbull $13.2 5.3% 5.0% + 0.3% 0 - 10% $12.8

Real Asset $10.9 4.4% 5.0% - 0.6% $11.8

Real Asset Wellington $10.9 4.4% 5.0% - 0.6% 0 - 10% $11.8

Cash $1.3 0.5% 0.0% + 0.5% $1.3

Cash Account Cash Account $1.3 0.5% 0.0% + 0.5% $1.3

Total $250.2 100.0% 100.0% + 0.0% $258.4

*Totals may not add to exactly 100.0% due to rounding.

20

Top Ten Equity Holdings

PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

British American Tobacco PLC 1.2 0.3 1.0 -3.8

Reckitt Benckiser Group PLC 1.2 0.1 1.1 0.6

Sanofi 1.2 0.3 0.9 6.5

Apple Inc 1.2 1.4 -0.2 9.0

Nestle SA, Cham Und Vevey 1.2 0.6 0.6 -5.1

Unilever NV 1.2 0.2 1.0 -8.1

Gilead Sciences Inc 1.1 0.4 0.7 28.4

Amazon.com Inc 1.1 0.3 0.8 -0.7

Google Inc (Class C) 1.0 0.4 0.6 0.4

Novartis AG 1.0 0.5 0.5 4.2

% of Portfolio 11.4 4.4

Portfolio Characteristics

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 78,402 78,388

Median Mkt. Cap ($M) 12,427 1,393

Price/Earnings ratio 19.2 16.7

Price/Book ratio 3.0 2.5

5 Yr. EPS Growth Rate (%) 14.1 14.4

Current Yield (%) 1.9 2.5

Debt to Equity 1.7 1.0

Number of Stocks 960 8,511

Beta - 1.00

Consistency - -

Sharpe Ratio - -

Information Ratio - -

Up Market Capture - -

Down Market Capture - -

Sector Weights (%)

Total Equity Composite MSCI AC World IMI

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Other

Cash

Utilities

Telecommunication Services

Materials

Information Technology

Industrials

Health Care

Financials

Energy

Consumer Staples

Consumer Discretionary

0.0

2.0

1.6

1.8

4.2

17.1

10.6

13.9

15.9

7.7

11.4

13.6

0.0

0.0

3.2

3.5

6.1

13.4

11.4

11.0

21.6

8.9

8.9

12.0

Distribution of Market Capitalization (%)

Total Equity Composite MSCI AC World IMI

0.0

10.0

20.0

30.0

40.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

31.1 31.3

22.8

14.8

0.0

31.830.9

25.2

10.2

2.0

Equity Portfolio - CharacteristicsTotal Equity Composite vs. MSCI AC World IMIAs of September 30, 2014

21

Total EquityComposite MSCI AC World IMI

Australia 0.5 2.6

Hong Kong 0.5 1.8

Japan 5.1 7.6

New Zealand 0.0 0.1

Singapore 0.0 0.6

Pacific 6.2 12.7

Austria 0.2 0.1

Belgium 0.2 0.5

Finland 0.0 0.3

France 3.2 3.0

Germany 2.1 2.9

Ireland 0.6 0.5

Italy 0.3 0.9

Netherlands 1.5 1.2

Portugal 0.1 0.1

Spain 0.0 1.2

EMU 8.1 10.7

Denmark 0.0 0.6

Norway 0.0 0.4

Sweden 0.7 1.1

Switzerland 4.4 3.3

United Kingdom 8.6 7.5

Europe ex EMU 13.7 12.8

Canada 0.7 3.9

United States 61.8 49.6

Israel 0.0 0.2

Middle East 0.0 0.2

Developed Markets 90.5 89.9

Total EquityComposite MSCI AC World IMI

Brazil 0.6 1.0

Cayman Islands 0.0 0.0

Chile 0.0 0.2

Colombia 0.2 0.1

Mexico 0.6 0.5

Peru 0.1 0.0

Virgin Islands 0.0 0.0

EM Latin America 1.5 1.9

China 1.8 1.3

India 0.7 0.8

Indonesia 0.1 0.3

Korea 1.1 1.6

Malaysia 0.2 0.4

Philippines 0.3 0.1

Taiwan 0.6 1.4

Thailand 0.3 0.3

EM Asia 4.9 6.2

Czech Republic 0.1 0.0

Egypt 0.0 0.0

Greece 0.0 0.1

Hungary 0.0 0.0

Poland 0.2 0.2

Qatar 0.0 0.1

Russia 0.1 0.4

South Africa 0.4 0.8

Turkey 0.0 0.2

United Arab Emirates 0.0 0.1

EM Europe + Middle East + Africa 0.8 1.9

Emerging Markets 7.2 9.9

Frontier Markets 0.1 0.0

Cash 2.0 0.0

Other 0.2 0.1

Total 100.0 100.0

Equity Portfolio - Country/Region AllocationTotal Equity Composite vs. MSCI AC World IMIAs of September 30, 2014

22


Maturity Distribution (%)

Credit Quality Distribution (%)

Risk Characteristics - 3 Years

Sector Distribution (%)

Total Fixed Income Composite

Barclays Intermediate U.S. Government/Credit

0.0

25.0

50.0

75.0

100.0

AAA AA ABBB BB B

CCC NR

64.9

6.6

14.3 14.2

0.0 0.0 0.0 0.0

26.4

9.9

18.621.5

10.3 11.1

0.6 1.6

Portfolio Benchmark

Effective Duration 4.6 3.9

Avg. Maturity 7.4 4.2

Avg. Quality A+ AA

Yield To Maturity (%) 3.8 1.7

ConsistencySharpeRatio

InformationRatio

UpMarket

Capture

DownMarket

Capture

Total Fixed Income Composite 63.9 1.0 0.7 185.6

Barclays Intermediate U.S. Government/Credit 0.0 1.0 N/A 100.0

90 Day U.S. Treasury Bill 38.9 N/A -1.0 1.0



0.0

25.0

50.0

75.0

100.0

Treasu

ries

TIPS

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

Oth

er

CMBS

56.4

0.06.0

24.5

0.0 0.0 0.0

10.6

2.4 0.0 0.0 0.0 0.0

24.6

0.0 0.3

17.9 15.4

2.7 3.3

14.8

3.8 1.2 4.0 5.8 6.2



0.0

15.0

30.0

45.0

60.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

0.0

41.7

26.4

31.9

0.0 0.03.9

22.420.3

39.5

6.5 7.4

Fixed Income Portfolio - CharacteristicsTotal Fixed Income Composite vs. Barclays Intermediate U.S. Government/CreditAs of September 30, 2014

23

Manager Evaluation

24

Historical Performance

Buy and Hold Attribution

Risk and Return (Oct - 2009 - Sep - 2014)Three Year Rolling Percentile Ranking

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Vanguard Windsor II -0.2 7.4 17.7 22.8 14.8 8.0 30.8 16.8 2.8 10.7 27.2 -36.6 2.3 18.4 7.2 18.4

Russell 1000 Value Index -0.2 8.1 18.9 23.9 15.3 7.8 32.5 17.5 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1 16.5

Large-Cap Value Equity Peer Group Median -0.3 6.1 16.2 21.8 14.0 7.5 31.7 15.0 -1.5 13.5 25.4 -37.3 2.9 16.6 6.1 12.5

Vanguard Windsor II Rank 47 26 34 36 33 39 61 28 17 86 41 44 55 35 36 6

14.0

14.5

15.0

15.5

16.0

Re

turn

(%)

14.5 14.6 14.7Risk (Standard Deviation %)

Russell 1000 Value Index

Vanguard Windsor II

Vanguard Windsor II Russell 1000 Value Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14

Average Active Weight

0.0 8.0 16.0-8.0-16.0

UtilitiesTelecommunication Services

OtherMaterials

Information TechnologyIndustrials

Health CareFinancials

EnergyConsumer Staples

Consumer DiscretionaryCash

-1.90.40.3

-1.81.7

-1.24.3

-8.0-1.6

3.11.82.9

Allocation(Total: 0.4)

0.0 0.2 0.4-0.2-0.4

0.10.00.00.0

0.10.0

0.1-0.2

0.10.1

0.00.0

Stock(Total: -0.1)

0.0 0.4 0.8-0.4-0.8

-0.10.00.00.00.0

0.40.3

-0.1-0.3-0.3

-0.20.0

Vanguard Windsor II

0.0 0.3 0.6 0.9-0.3-0.6

0.00.0

0.00.1

0.10.40.4

-0.2-0.2-0.2

-0.20.0

Manager EvaluationVanguard Windsor II vs. Russell 1000 Value IndexAs of September 30, 2014

Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.

25


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Microsoft Corp 3.0 1.4 1.7 11.9

JPMorgan Chase & Co 2.7 2.3 0.4 5.3

Pfizer Inc 2.6 1.9 0.7 0.5

Intel Corp 2.6 1.6 1.0 13.5

Wells Fargo & Co 2.5 2.5 0.0 -0.6

Johnson & Johnson 2.3 2.6 -0.3 2.6

Medtronic Inc 2.3 0.6 1.6 -2.4

Citigroup Inc 2.3 1.6 0.7 10.0

WellPoint Inc 2.2 0.3 1.9 11.6

Philip Morris International Inc 2.2 0.6 1.6 0.1



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 109,816 112,109

Median Mkt. Cap ($M) 22,184 6,878






Number of Stocks 258 690

Beta (5 Years, Monthly) 0.97 1.00

Consistency (5 Years, Monthly) 43.33 1.00

Sharpe Ratio (5 Years, Monthly) 1.10 1.11

Information Ratio (5 Years, Monthly) -0.20 -

Up Market Capture (5 Years, Monthly) 96.40 -

Down Market Capture (5 Years, Monthly) 95.70 -

Sector Weights (%)


0.0 8.0 16.0 24.0 32.0 40.0

Other

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


0.3

2.3

3.8

2.7

1.6

13.3

8.5

17.3

21.4

10.6

9.4

8.9

0.0

0.0

6.0

2.3

3.3

9.4

10.2

13.5

29.2

12.9

7.1

6.2



0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

42.4

31.3

20.1

6.2

0.0

45.4

35.1

15.6

1.7 2.3

Manager EvaluationVanguard Windsor II vs. Russell 1000 Value IndexAs of September 30, 2014

*Portfolio characteristics as of 12/31/2013.

26


Three Year Rolling Percentile Ranking Relative Performance

Historical Statistics (Oct-2009 - Sep-2014)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Vanguard Institutional Index 1.1 8.3 19.7 23.0 15.7 8.1 32.3 16.0 2.1 15.0 26.6 -37.0 5.5 15.8 4.9 10.9

S&P 500 Index 1.1 8.3 19.7 23.0 15.7 8.1 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 15.8 4.9 10.9

Large-Cap Equity Peer Group Median 0.1 6.0 16.4 21.5 14.3 7.8 32.4 14.6 -1.0 14.0 27.8 -37.5 6.2 13.3 5.9 10.2

Vanguard Institutional Index Rank 25 15 17 30 24 42 51 36 22 38 56 45 55 32 62 44

Cumulative Annualized Over/Under Relative Performance

Over/Under Performance

0.0

0.1

0.2

-0.1

-0.2

Re

turn

(%)

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14

Vanguard Institutional Index S&P 500 Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14

ReturnStandardDeviation

ExcessReturn Alpha Beta

SharpeRatio

TrackingError

InformationRatio

DownsideRisk Consistency

InceptionDate

Vanguard Institutional Index 15.7 14.1 15.8 0.0 1.0 1.1 0.0 -1.3 8.1 15.0 15y

S&P 500 Index 15.7 14.1 15.8 0.0 1.0 1.1 0.0 N/A 8.1 0.0 15y

90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.1 -1.1 0.0 20.0 15y

Manager EvaluationVanguard Institutional Index vs. S&P 500 IndexAs of September 30, 2014

27


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Apple Inc 3.4 3.4 0.0 9.0

Exxon Mobil Corp 2.3 2.3 0.0 -5.9

Microsoft Corp 2.2 2.2 0.0 11.9

Johnson & Johnson 1.7 1.7 0.0 2.6

General Electric Co 1.5 1.5 0.0 -1.7

Wells Fargo & Co 1.4 1.4 0.0 -0.6

Berkshire Hathaway Inc 1.3 1.4 -0.1 9.1

Procter & Gamble Co (The) 1.3 1.3 0.0 7.4

JPMorgan Chase & Co 1.3 1.3 0.0 5.3

Chevron Corp 1.3 1.3 0.0 -7.8



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 129,536 129,536

Median Mkt. Cap ($M) 17,195 17,148













Sector Weights (%)


0.0 5.0 10.0 15.0 20.0 25.0

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


3.0

2.4

3.5

19.7

10.3

13.9

16.3

9.7

9.5

11.7

3.0

2.4

3.5

19.7

10.3

13.9

16.3

9.7

9.5

11.7



0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

48.7

34.7

16.1

0.5

48.7

34.7

16.1

0.5

Manager EvaluationVanguard Institutional Index vs. S&P 500 IndexAs of September 30, 2014

28




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

T. Rowe Price LCC Growth 1.8 4.8 18.2 24.6 17.4 9.0 41.4 18.5 1.5 16.4 43.0 -42.6 13.0 9.1 4.0 7.3

Russell 1000 Growth Index 1.5 7.9 19.1 22.4 16.5 8.9 33.5 15.3 2.6 16.7 37.2 -38.4 11.8 9.1 5.3 6.3

Large-Cap Growth Peer Group Median 1.1 5.5 16.7 21.5 15.1 8.5 34.6 14.6 -0.8 15.3 33.4 -38.3 13.8 7.1 6.2 7.7

T. Rowe Price LCC Growth Rank 29 62 33 11 15 40 12 16 27 39 14 78 55 33 69 56

15.3

16.2

17.1

18.0

18.9

Re

turn

(%)

13.5 14.0 14.5 15.0 15.5 16.0 16.5 17.0Risk (Standard Deviation %)

Russell 1000 Growth Index

T. Rowe Price LCC Growth

T. Rowe Price LCC Growth Russell 1000 Growth Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14


0.0 15.0 30.0-15.0

Utilities

Telecommunication ServicesMaterials


Industrials


Energy

Consumer StaplesConsumer Discretionary

Cash

-0.1

-1.9-0.4

-6.3

2.3

4.82.3

-1.2

-8.4

8.30.6


0.0 0.3 0.6-0.3-0.6

0.0

0.00.0

-0.2

-0.1

0.3-0.1

0.1

0.1

-0.10.0

Stock(Total: 0.2)

0.0 0.5 1.0-0.5-1.0

0.0

0.00.1

-0.1

0.0

0.50.4

-0.3

0.1

-0.40.0

T. Rowe Price LCC Growth

0.0 0.5 1.0 1.5-0.5-1.0

0.0

-0.10.1

-0.2

-0.1

0.80.3

-0.1

0.1

-0.40.0

Manager EvaluationT. Rowe Price Large-Cap Core Growth vs. Russell 1000 Growth IndexAs of September 30, 2014


29


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Amazon.com Inc 4.3 1.2 3.1 -0.7


Priceline.Com Inc 3.1 0.6 2.6 -3.7


Google Inc 2.8 1.6 1.2 0.6

McKesson Corp 2.7 0.4 2.3 4.7

Biogen Idec Inc 2.6 0.8 1.8 4.9

Facebook Inc 2.5 1.5 1.0 17.5

Baidu Inc 2.4 0.0 2.4 16.8

Danaher Corp 2.4 0.1 2.2 -3.4



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 83,008 116,514

Median Mkt. Cap ($M) 26,144 8,528










Information Ratio (5 Years, Monthly) 0.29 -



Sector Weights (%)

T. Rowe Price Large-Cap Core Growth


0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


1.4

0.0

0.4

3.6

22.2

13.0

21.2

7.4

3.8

2.1

24.9

0.0

0.1

2.4

4.2

28.4

11.9

13.6

5.1

5.7

10.3

18.2


T. Rowe Price Large-Cap Core Growth


0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

43.0

31.4

21.3

4.2

0.0

34.7

44.4

19.6

0.01.4

Manager EvaluationT. Rowe Price Large-Cap Core Growth vs. Russell 1000 Growth IndexAs of September 30, 2014

30




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Holland Large Cap Growth 1.2 5.2 15.7 19.5 15.1 8.1 30.3 13.1 4.3 15.3 40.0 -33.8 9.4 6.4 -0.1 12.0

Russell 1000 Growth Index 1.5 7.9 19.1 22.4 16.5 8.9 33.5 15.3 2.6 16.7 37.2 -38.4 11.8 9.1 5.3 6.3

Large-Cap Growth Equity Peer Group Median 1.1 5.5 16.7 21.5 15.1 8.5 34.6 14.6 -0.8 15.3 33.4 -38.3 13.8 7.1 6.2 7.7

Holland Large Cap Growth Rank 47 55 62 76 51 60 77 66 14 51 22 22 78 58 93 18

12.0

14.0

16.0

18.0

20.0

Re

turn

(%)




Holland Large Cap Growth Russell 1000 Growth Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14


0.0 4.0 8.0-4.0-8.0

Utilities



Industrials


Energy


Cash

-0.1

-2.3-1.5

3.3

-1.5

0.5-2.0

3.9

-2.9

0.02.5

Allocation(Total: -0.3)

0.0 0.3-0.3-0.6-0.9

0.0

-0.10.0

0.1

0.0

0.00.1

-0.5

0.0

0.00.0

Stock(Total: 0.3)

0.0 0.7 1.4-0.7-1.4

0.0

0.00.0

-0.3

-0.6

0.50.1

-0.2

0.8

0.10.0


0.0 0.6 1.2 1.8-0.6-1.2-1.8

0.0

-0.10.0

-0.3

-0.5

0.50.2

-0.7

0.8

0.10.0

Manager EvaluationHolland Large Cap Growth vs. Russell 1000 Growth IndexAs of September 30, 2014


31


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Qualcomm Inc. 4.3 1.2 3.1 -5.1


Visa Inc 3.9 1.1 2.9 1.5

Citrix Systems Inc. 3.8 0.1 3.7 14.1


Apple Inc 3.6 5.9 -2.3 9.0

Priceline.Com Inc 3.5 0.6 2.9 -3.7

Amazon.com Inc 3.4 1.2 2.2 -0.7

Adobe Systems Inc 3.3 0.3 2.9 -4.4

Range Resources Corp. 3.1 0.1 3.0 -22.0



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 94,418 116,514

Median Mkt. Cap ($M) 38,377 8,528













Sector Weights (%)

Holland Capital Management Russell 1000 Growth Index

0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


2.9

0.0

0.0

3.1

31.0

10.4

12.9

3.7

8.7

8.8

18.5

0.0

0.1

2.4

4.2

28.4

11.9

13.6

5.1

5.7

10.3

18.2


Holland Capital Management Russell 1000 Growth Index

0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

43.0

31.4

21.3

4.2

0.0

34.531.7

27.8

3.1 2.9

Manager EvaluationHolland Capital Management vs. Russell 1000 Growth IndexAs of September 30, 2014

32




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Kennedy Mid Cap Value -2.3 11.9 20.9 24.8 17.7 N/A 33.3 13.6 -0.8 27.0 34.8 -27.0 N/A N/A N/A N/A

Russell Midcap Value Index -2.6 8.2 17.5 24.7 17.2 10.2 33.5 18.5 -1.4 24.8 34.2 -38.4 -1.4 20.2 12.6 23.7

Mid-Cap Value Equity Peer Group Median -4.1 1.6 10.0 21.4 14.6 8.9 33.4 15.5 -3.0 20.7 32.9 -38.9 2.7 13.9 8.6 16.7

Kennedy Mid Cap Value Rank 21 1 1 14 7 N/A 51 63 33 9 43 10 N/A N/A N/A N/A

16.5

17.0

17.5

18.0

18.5

Re

turn

(%)


Russell Midcap Value Index


Kennedy Mid Cap Value Russell Midcap Value Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14


0.0 10.0 20.0-10.0-20.0

Utilities



Industrials


Energy


Cash

-2.9

-0.3-1.7

-1.3

7.0

-3.0-9.1

4.0

-0.4

3.04.7


0.0 0.4-0.4-0.8

0.1

0.00.0

0.0

-0.2

-0.20.0

-0.5

0.0

0.10.1

Stock(Total: 1.0)

0.0 0.6 1.2-0.6-1.2

0.0

0.00.0

0.7

0.6

0.20.1

-0.1

0.0

-0.30.0


0.0 0.5 1.0 1.5-0.5-1.0-1.5

0.1

0.00.0

0.6

0.4

0.10.0

-0.6

0.0

-0.20.1

Manager EvaluationKennedy Mid Cap Value vs. Russell Midcap Value IndexAs of September 30, 2014


33


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Hospira Inc 2.5 0.3 2.2 1.3

Cadence Design Systems Inc 2.3 0.0 2.3 -1.6

Trinity Industries Inc. 2.3 0.1 2.2 7.1

Foot Locker Inc. 2.3 0.2 2.0 10.2

Reinsurance Group of America Inc. 2.2 0.1 2.1 2.0

Community Health Systems Inc 2.2 0.2 2.0 20.8

NetApp Inc 2.2 0.3 1.8 18.2

Helmerich & Payne Inc. 2.1 0.1 2.0 -15.1

Lincoln National Corp 2.1 0.5 1.6 4.5

UGI Corp 2.1 0.2 1.9 1.9



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 8,272 11,123

Median Mkt. Cap ($M) 6,684 5,613













Sector Weights (%)

Kennedy Capital Management Russell Midcap Value Index

0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


3.5

8.7

0.0

3.8

12.8

15.6

6.1

23.8

8.0

2.0

15.8

0.0

11.9

0.3

7.1

10.8

9.5

9.3

32.2

5.4

3.4

10.0


Kennedy Capital Management Russell Midcap Value Index

0.0

25.0

50.0

75.0

100.0

$20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

12.1

67.3

20.6

0.01.6

67.9

27.0

3.5

Manager EvaluationKennedy Capital Management vs. Russell Midcap Value IndexAs of September 30, 2014

34




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

TimesSquare Small Cap Growth -5.7 -11.1 -2.9 20.0 15.9 11.6 47.7 13.1 2.6 27.3 35.7 -32.3 10.0 16.5 13.4 11.1

Russell 2000 Growth Index -6.1 -4.0 3.8 21.9 15.5 9.0 43.3 14.6 -2.9 29.1 34.5 -38.5 7.0 13.3 4.2 14.3

Small-Cap Growth Equity Peer Group Median -5.8 -5.5 1.9 20.1 14.7 8.0 44.7 12.7 -2.7 27.7 34.5 -40.6 9.9 9.9 5.8 11.3

TimesSquare Small Cap Growth Rank 46 89 88 52 28 6 31 47 14 53 46 11 49 14 10 53

14.8

15.2

15.6

16.0

16.4

16.8

Re

turn

(%)




TimesSquare Small Cap Growth Russell 2000 Growth Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14


0.0 15.0 30.0-15.0-30.0

Utilities



Industrials


Energy


Cash

-0.2

-0.7-3.7

6.6

9.2

-10.1-0.1

-0.5

-0.1

-3.93.5


0.0 0.4 0.8-0.4-0.8

0.0

0.00.0

0.1

-0.2

-0.30.0

0.1

0.0

0.10.2

Stock(Total: 0.3)

0.0 0.5 1.0 1.5-0.5-1.0

0.0

0.0-0.2

0.7

-0.1

0.5-0.2

-0.2

0.1

-0.20.0


0.0 0.4 0.8 1.2-0.4-0.8

0.0

0.0-0.1

0.8

-0.3

0.2-0.2

-0.2

0.1

-0.10.2

Manager EvaluationTimesSquare Small Cap Growth vs. Russell 2000 Growth IndexAs of September 30, 2014


35


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Solera Holdings Inc 2.1 0.0 2.1 -15.8

Albany International Corp. 1.9 0.0 1.9 -9.9

WEX Inc 1.9 0.5 1.4 5.1

On Assignment Inc 1.9 0.2 1.7 -24.5

Ultimate Software Group Inc 1.9 0.5 1.4 2.4

Air Methods Corp 1.8 0.3 1.5 7.5

j2 Global Inc 1.7 0.3 1.4 -2.4

Henry (Jack) & Associates Inc. 1.6 0.0 1.6 -6.0

CoStar Group Inc 1.6 0.0 1.6 -1.7

Team Health Holdings Inc 1.6 0.5 1.1 16.1



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 2,093 1,847

Median Mkt. Cap ($M) 1,577 785





Debt to Equity 0.5 -5.5

Number of Stocks 107 1,151







Sector Weights (%)


0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


1.0

0.0

0.9

1.6

32.4

24.6

12.7

7.2

3.9

3.8

11.9

0.0

0.2

0.8

5.4

25.9

14.7

21.7

7.6

4.7

3.9

15.2



0.0

50.0

100.0

150.0

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

0.7

99.3

0.03.6

95.5

1.0

Manager EvaluationTimesSquare Small Cap Growth vs. Russell 2000 Growth IndexAs of September 30, 2014

36




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Morgan Stanley International Equity -5.0 -0.8 4.7 14.5 7.4 6.5 20.4 19.6 -7.6 6.1 21.6 -33.1 9.8 22.5 6.5 20.0

MSCI EAFE Index -5.9 -1.4 4.3 13.6 6.6 6.3 22.8 17.3 -12.1 7.8 31.8 -43.4 11.2 26.3 13.5 20.2

International Equity Peer Group Median -5.8 -1.7 4.3 13.6 6.8 6.6 20.8 18.4 -13.7 11.6 33.5 -44.4 11.9 25.2 15.0 18.5

Morgan Stanley International Equity Rank 27 36 43 33 38 55 54 35 10 88 92 1 66 76 100 38

5.6

6.4

7.2

8.0

8.8

Re

turn

(%)


MSCI EAFE Index

Morgan Stanley International Equity

Morgan Stanley International Equity MSCI EAFE Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14


0.0 15.0 30.0-15.0

Utilities



Industrials


Energy


Cash

-3.9

-3.30.7

2.2

-5.6

3.7-7.1

0.8

13.6

-3.22.1


0.0 0.2 0.4-0.2-0.4

0.0

0.00.0

0.1

0.1

0.2-0.1

0.0

-0.2

0.10.1

Stock(Total: 0.6)

0.0 0.5 1.0-0.5-1.0

0.0

0.1-0.2

0.1

0.1

0.10.0

0.1

0.5

-0.10.0

Morgan Stanley International Equity

0.0 0.3 0.6 0.9-0.3-0.6

0.0

0.0-0.3

0.2

0.1

0.3-0.1

0.1

0.4

0.00.1

Manager EvaluationMorgan Stanley International Equity vs. MSCI EAFE IndexAs of September 30, 2014


37

Total Attribution

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8-0.1-0.2-0.3-0.4-0.5

Pacific

Other

North America

Middle East

Europe ex EMU

EMU

EM Asia

Cash

-0.2

0.0

-0.1

0.0

0.5

0.5

0.0

0.1

Performance Attribution


0.0 10.0 20.0-10.0-20.0

Pacific

Other

North America

Middle East

Europe ex EMU

EMU

EM Asia

Cash

-10.3

-0.3

1.5

-0.5

11.9

-5.6

1.4

2.1


0.0 0.2 0.4-0.2-0.4-0.6

-0.2

0.0

-0.1

0.0

0.0

0.2

0.0

0.1

Stock(Total: 0.9)

0.0 0.2 0.4 0.6 0.8

0.1

0.0

0.0

0.0

0.5

0.3

0.0

0.0

Manager EvaluationMorgan Stanley International Equity vs. MSCI EAFE Index1 Quarter Ending September 30, 2014

38


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

British American Tobacco PLC 4.7 0.8 3.9 -3.8

Reckitt Benckiser Group PLC 4.6 0.4 4.2 0.6

Nestle SA, Cham Und Vevey 4.5 1.8 2.7 -5.1

Sanofi 4.4 1.0 3.4 6.5

Unilever NV 4.4 0.5 3.9 -8.1

Novartis AG 3.6 1.7 1.9 4.2

Roche Holding AG 3.2 1.6 1.5 -0.7

Diageo PLC 2.8 0.6 2.2 -7.6

SAP AG Systeme Anwendungen 2.5 0.5 1.9 -6.6

Toyota Motor Corp 2.4 1.3 1.2 -0.9



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 79,836 64,782

Median Mkt. Cap ($M) 30,670 8,932













Sector Weights (%)


0.0 6.0 12.0 18.0 24.0 30.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


2.4

0.0

1.6

7.7

7.0

6.9

14.7

18.5

7.6

24.4

9.1

0.0

3.9

4.9

7.7

4.7

12.5

11.2

25.7

6.9

10.9

11.6



0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

28.5

40.8

26.3

4.4

0.0

36.1 36.8

23.7

1.02.4


39

Morgan StanleyInternational Equity MSCI EAFE Index

Australia 2.0 7.5

Hong Kong 0.6 2.9

Japan 18.9 21.0

New Zealand 0.0 0.1

Singapore 0.0 1.5

Pacific 21.5 33.1

Austria 0.0 0.2

Belgium 0.0 1.3

Finland 0.0 0.9

France 10.5 9.4

Germany 7.9 8.7

Ireland 0.9 0.3

Italy 1.0 2.4

Netherlands 5.3 3.0

Portugal 0.0 0.2

Spain 0.0 3.6

EMU 25.6 30.0

Denmark 0.0 1.6

Norway 0.0 0.8

Sweden 2.4 3.1

Switzerland 15.7 9.2



Canada 1.4 0.0


Israel 0.0 0.6

Middle East 0.0 0.6


Morgan StanleyInternational Equity MSCI EAFE Index

Brazil 0.0 0.0


Chile 0.0 0.0

Colombia 0.0 0.0

Mexico 0.0 0.0

Peru 0.0 0.0



China 1.3 0.0

India 0.0 0.0

Indonesia 0.0 0.0

Korea 0.0 0.0

Malaysia 0.0 0.0

Philippines 0.0 0.0

Taiwan 0.0 0.0

Thailand 0.0 0.0

EM Asia 1.3 0.0


Egypt 0.0 0.0

Greece 0.0 0.0

Hungary 0.0 0.0

Poland 0.0 0.0

Qatar 0.0 0.0

Russia 0.0 0.0


Turkey 0.0 0.0





Cash 2.4 0.0

Other 0.0 0.3

Total 100.0 100.0


40




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Morgan Stanley Emerging Markets -3.5 1.9 3.7 7.7 4.8 10.4 -0.8 20.2 -18.4 18.5 69.5 -56.4 41.6 38.0 34.5 24.1

MSCI Emerging Markets Index -3.5 2.4 4.3 7.2 4.4 10.7 -2.6 18.2 -18.4 18.9 78.5 -53.3 39.4 32.2 34.0 25.6

Emerging Markets Equity Peer Group Median -3.7 2.2 4.4 8.1 4.5 10.0 -1.1 19.5 -19.2 19.2 74.0 -54.5 37.4 32.3 32.9 24.9

Morgan Stanley Emerging Markets Rank 44 57 61 59 45 42 47 39 41 55 69 71 25 16 41 60

3.6

4.0

4.4

4.8

5.2

5.6

Re

turn

(%)


MSCI Emerging Markets Index

Morgan Stanley Emerging Markets

Morgan Stanley Emerging Markets MSCI Emerging Markets Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14


0.0 4.0 8.0-4.0-8.0-12.0

Utilities



Industrials


Energy


Cash

-3.5

2.0-5.1

0.4

1.5

2.00.9

-4.4

1.3

2.52.3


0.0 0.2 0.4-0.2-0.4

0.0

0.20.2

0.0

0.0

0.30.0

0.2

0.0

-0.10.1

Stock(Total: -0.8)

0.0 0.5 1.0-0.5-1.0

0.0

-0.50.2

-0.6

0.2

-0.2-0.3

0.4

0.0

0.20.0

Morgan Stanley Emerging Markets

0.0 0.5 1.0 1.5-0.5-1.0-1.5

0.0

-0.40.4

-0.6

0.2

0.1-0.3

0.5

0.0

0.10.1

Manager EvaluationMorgan Stanley Emerging Markets vs. MSCI Emerging Markets IndexAs of September 30, 2014


41

Total Attribution

0.0 0.3 0.6 0.9 1.2 1.5 1.8 2.1-0.3-0.6-0.9-1.2-1.5-1.8-2.1

Pacific

Other

North America

Frontier Markets

Europe ex EMU

EMU

EM Latin America

EM Europe + Middle East + Africa

EM Asia

Cash

-0.1

-0.1

-0.1

0.2

-0.1

-1.0

0.8

0.2

0.4

0.1

Performance Attribution


0.0 5.0 10.0 15.0-5.0-10.0-15.0

Pacific

Other

North America

Frontier Markets

Europe ex EMU

EMU

EM Latin America

EM Europe + Middle East + Africa

EM Asia

Cash

-2.4

1.7

1.3

1.3

2.0

5.3

-0.1

-6.4

-5.0

2.3


0.0 0.5 1.0-0.5-1.0-1.5-2.0

-0.2

-0.1

0.0

0.2

-0.1

-1.0

0.0

0.3

-0.1

0.1

Stock(Total: 1.1)

0.0 0.4 0.8 1.2 1.6-0.4-0.8

0.1

0.0

-0.2

0.0

0.0

0.0

0.8

-0.1

0.5

0.0

Manager EvaluationMorgan Stanley Emerging Markets vs. MSCI Emerging Markets Index1 Quarter Ending September 30, 2014

42


PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Tencent Holdings LTD 2.5 1.9 0.5 -2.5

Taiwan Semiconductor Manufacturing 2.3 2.5 -0.2 -4.7

BRF - Brasil Foods S.A. 2.2 0.4 1.9 -1.1

Bank of China Ltd 2.2 0.9 1.3 0.1

Samsung Electronics Co Ltd 1.8 3.1 -1.3 -14.3

Cemex SAB de CV 1.6 0.4 1.2 -1.4

America Movil SA De CV, Mexico 1.6 1.1 0.5 22.4

Alfa SAB De CV 1.5 0.3 1.3 23.6

Naspers Ltd 1.5 1.1 0.4 -6.1

China Mobile Ltd 1.5 1.8 -0.3 21.0



Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 31,729 38,575

Median Mkt. Cap ($M) 9,106 5,444













Sector Weights (%)


0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


1.9

0.2

8.5

4.0

15.1

8.0

2.9

30.5

7.9

9.6

11.5

0.0

3.5

7.7

8.3

16.7

6.6

2.1

27.5

10.2

8.3

8.9



0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

17.5

28.0

38.6

15.8

0.0

13.4

26.5

38.9

19.2

1.9


43

Morgan StanleyEmerging Markets

MSCI EmergingMarkets Index

Australia 0.0 0.0

Hong Kong 3.1 6.4

Japan 0.2 0.0

New Zealand 0.0 0.0

Singapore 0.5 0.1

Pacific 3.8 6.5

Austria 2.3 0.0

Belgium 0.0 0.0

Finland 0.0 0.0

France 0.0 0.0

Germany 0.0 0.0

Ireland 0.0 0.0

Italy 0.0 0.0

Netherlands 0.5 0.0

Portugal 0.8 0.0

Spain 0.0 0.0

EMU 3.5 0.0

Denmark 0.0 0.0

Norway 0.0 0.0

Sweden 0.0 0.0

Switzerland 1.1 0.0



Canada 0.0 0.0


Israel 0.0 0.0

Middle East 0.0 0.0


Morgan StanleyEmerging Markets

MSCI EmergingMarkets Index

Brazil 8.4 10.3


Chile 0.6 1.5

Colombia 2.8 1.0

Mexico 7.7 5.4

Peru 1.2 0.3



China 10.1 12.7

India 9.1 7.1

Indonesia 1.2 2.7

Korea 14.5 15.0

Malaysia 2.4 3.9

Philippines 3.8 1.2

Taiwan 8.0 12.0

Thailand 3.6 2.4

EM Asia 52.7 56.9


Egypt 0.0 0.3

Greece 0.0 0.7

Hungary 0.0 0.2

Poland 3.3 1.7

Qatar 0.5 0.6

Russia 1.0 4.6


Turkey 0.0 1.6





Cash 1.9 0.0

Other 1.6 0.0

Total 100.0 100.0


44


Three Year Rolling Percentile Ranking Risk and Return (Oct-2009 - Sep-2014)


Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Income Research -0.1 2.5 2.5 2.9 4.0 4.9 -0.9 5.9 5.6 6.2 14.4 0.8 7.4 4.5 2.8 3.7

Barclays Intermediate U.S. Government/Credit 0.0 2.2 2.2 2.0 3.4 4.0 -0.9 3.9 5.8 5.9 5.2 5.1 7.4 4.1 1.6 3.0

Intermediate Duration Fixed Income Peer Group Median -0.1 2.6 3.0 2.9 4.5 4.6 -0.6 5.1 4.6 6.1 9.8 -1.8 5.5 4.0 1.5 2.6

Income Research Rank 40 63 65 51 60 25 61 41 28 49 24 29 9 14 1 19

2.5

3.0

3.5

4.0

4.5

5.0

Re

turn

(%)

2.1 2.2 2.3 2.4 2.5Risk (Standard Deviation %)


Income Research

Income Research


0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Income Research 4.0 2.3 3.9 0.8 0.9 1.7 0.7 0.8 1.0 65.0 17y 8m

Barclays Intermediate U.S. Government/Credit 3.4 2.4 3.3 0.0 1.0 1.4 0.0 N/A 1.0 0.0 17y 8m

90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 2.4 -1.4 0.0 20.0 17y 8m

Manager EvaluationIncome Research vs. Barclays Intermediate U.S. Government/CreditAs of September 30, 2014

45


Income Research


0.0

25.0

50.0

75.0

100.0

AAA AA ABBB BB B

Below

B

Not Rat

ed

64.9

6.6

14.3 14.2

0.0 0.0 0.0 0.0

51.4

9.5

17.720.9

0.0 0.0 0.0 0.6


Portfolio Benchmark



Avg. Quality AA- AA



Income Research


0.0

25.0

50.0

75.0

100.0

Treasu

ries

TIPS

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

Oth

er

CMBS

56.4

0.06.0

24.5

0.0 0.0 0.0

10.6

2.4 0.0 0.0 0.0 0.0

23.6

0.0 0.8

37.4

0.03.7

7.6

0.0 0.0 2.4 0.6

9.414.6


Income Research


0.0

15.0

30.0

45.0

60.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

0.0

41.7

26.4

31.9

0.0 0.00.0

37.0

30.4 30.6

2.00.0

Manager EvaluationIncome Research vs. Barclays Intermediate U.S. Government/CreditAs of September 30, 2014

46




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Penn Capital -2.2 2.0 5.6 8.4 8.9 N/A 5.9 13.3 4.2 15.0 37.5 -21.0 1.8 8.9 N/A N/A

BofA Merrill Lynch US High Yield, Cash Pay Index -1.9 3.5 7.1 10.9 10.3 8.1 7.4 15.4 4.5 15.2 56.3 -26.2 2.2 11.6 2.8 10.8

High Yield Fixed Income Peer Group Median -1.9 3.3 6.9 10.8 10.0 7.6 7.4 15.3 4.0 14.7 47.3 -24.3 2.6 10.7 3.1 10.4

Penn Capital Rank 81 93 88 93 84 N/A 78 80 46 41 79 25 74 84 N/A N/A

6.0

8.0

10.0

12.0

14.0

Re

turn

(%)



Penn Capital

Penn Capital


0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Penn Capital 8.9 5.2 8.7 0.3 0.8 1.7 1.5 -0.9 2.4 35.0 9y 3m

BofA Merrill Lynch US High Yield, Cash Pay Index 10.3 6.0 10.1 0.0 1.0 1.7 0.0 N/A 2.9 0.0 9y 3m


Manager EvaluationPenn Capital vs. BofA Merrill Lynch US High Yield, Cash Pay IndexAs of September 30, 2014

47


Penn Capital


0.0

25.0

50.0

75.0

100.0

AAA AA ABBB BB B

Below

B

Not Rat

ed

0.0 0.0 0.0 0.0

41.8 41.0

17.0

0.20.0 0.0 0.0 0.7

35.0

64.2

0.0 0.0


Portfolio Benchmark



Avg. Quality B B+



Penn Capital


0.0

50.0

100.0

150.0

Treasu

ries

TIPS

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

Oth

er

CMBS

0.0 0.0 0.0 0.0

100.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00.0 0.0 0.0 0.0

96.6

0.0 0.0 0.0 0.0 0.0 3.3 0.1 0.0


Penn Capital


0.0

50.0

100.0

150.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

0.08.5

24.2

61.3

4.1 1.93.5 1.8

15.8

76.0

2.9 0.0

Manager EvaluationPenn Capital vs. BofA Merrill Lynch US High Yield, Cash Pay IndexAs of September 30, 2014

48


Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Sep-2014)

Historical Statistics (Apr-2010 - Sep-2014)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Loomis Credit Asset Fund -0.6 3.9 6.3 8.8 N/A N/A 4.4 14.2 3.3 N/A N/A N/A N/A N/A N/A N/A

50% BC Credit / 25% S&P LSTA / 25% BY High Yield -0.6 4.2 6.1 6.8 7.3 6.2 2.1 11.0 5.8 10.6 34.3 -15.9 3.6 6.8 3.0 6.7

Alternative Credit Focus Funds Peer Group Median -0.5 1.8 3.6 4.1 5.2 4.3 0.9 8.6 1.3 8.1 21.9 -12.7 4.6 5.1 1.4 6.1

Loomis Credit Asset Fund Rank 55 13 9 1 N/A N/A 15 6 22 N/A N/A N/A N/A N/A N/A N/A

5.4

6.3

7.2

8.1

9.0

Re

turn

(%)

2.4 2.7 3.0 3.3 3.6 3.9 4.2 4.5 4.8 5.1Risk (Standard Deviation %)


Loomis Credit Asset Fund



0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Loomis Credit Asset Fund 7.6 4.3 7.4 -0.4 1.2 1.7 1.8 0.5 1.7 66.7 4y 6m

50% BC Credit / 25% S&P LSTA / 25% BY High Yield 6.7 3.3 6.5 0.0 1.0 2.0 0.0 N/A 1.1 0.0 4y 6m


Manager EvaluationLoomis Credit Asset Fund vs. 50% BC Credit / 25% S&P LSTA / 25% BY High YieldAs of September 30, 2014

49



0.0

8.0

16.0

24.0

32.0

AAA AA ABBB BB B

Below

B

Not Rat

ed

11.2

2.5

14.1

23.023.9

22.1

3.2

0.0


Portfolio

Effective Duration 4.2

Avg. Maturity 9.8

Avg. Quality BBB-

Yield To Maturity (%) 4.6



0.0

15.0

30.0

45.0

Treasu

ries

TIPS

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

Oth

er

CMBS

2.30.0 0.1

21.422.7

4.2 4.1

0.0 0.0 0.0

10.8

30.7

3.7



0.0

15.0

30.0

45.0

60.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

13.8 13.8

21.0

44.0

7.4

0.0

Manager EvaluationLoomis Credit Asset FundAs of September 30, 2014

50




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Brandywine Global Opportunistic Fixed Income -2.0 6.2 5.9 5.6 7.6 N/A -3.5 14.1 8.0 13.9 20.5 -8.5 10.6 8.4 -0.9 N/A

Citigroup World Government Bond -3.8 1.0 -0.1 -0.5 1.6 4.1 -4.0 1.6 6.4 5.2 2.6 10.9 11.0 6.1 -6.9 10.3

Global Fixed Income Peer Group Median -1.8 2.5 3.3 2.9 4.2 4.9 -1.7 7.5 3.7 6.1 12.0 -2.1 7.7 5.7 0.7 9.5

Brandywine Global Opportunistic Fixed Income Rank 54 9 21 20 3 N/A 69 15 12 10 25 74 18 21 55 N/A

-6.0

0.0

6.0

12.0

18.0

Re

turn

(%)

5.5 5.6 5.7 5.8Risk (Standard Deviation %)


Brandywine Global Opportunistic Fixed Income



0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Brandywine Global Opportunistic Fixed Income 7.6 5.7 7.5 6.2 0.8 1.3 3.3 1.8 1.8 80.0 9y 9m

Citigroup World Government Bond 1.6 5.6 1.6 0.0 1.0 0.3 0.0 N/A 3.0 0.0 9y 9m


Manager EvaluationBrandywine Global Opportunistic Fixed Income vs. Citigroup World Government BondAs of September 30, 2014

51




0.0

25.0

50.0

75.0

100.0

AAA AA ABBB BB B

Below

B

Not Rat

ed

18.1

67.1

2.5

12.5

0.0 0.0 0.0 0.0

18.723.4

27.7

19.2

8.01.7 1.1 0.2


Portfolio Benchmark



Avg. Quality A AA





0.0

25.0

50.0

75.0

100.0

Treasu

ries

TIPS

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

Oth

er

CMBS

29.7

0.0 0.0 0.0 0.0 0.0 0.0

70.3

0.0 0.0 0.0 0.0 0.0

10.1

0.0 0.06.0

0.13.8

0.0

58.7

15.1

0.84.6

0.9 0.0




0.0

15.0

30.0

45.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

0.0

27.5

19.0

27.426.2

0.0

5.8

18.8

7.6

31.3

7.3

29.3

Manager EvaluationBrandywine Global Opportunistic Fixed Income vs. Citigroup World Government BondAs of September 30, 2014

52


Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Sep-2014)

Historical Statistics (Jul-2010 - Sep-2014)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Pictet Emerging Local Currency Debt Fund -5.5 -1.0 -2.5 0.8 N/A N/A -10.3 15.3 -2.3 N/A N/A N/A N/A N/A N/A N/A

JPM GBI-EM Global Diversified -5.7 0.0 -1.5 2.2 4.4 8.8 -9.0 16.8 -1.8 15.7 22.0 -5.2 18.1 15.2 6.3 23.0

Emerging Markets LC Peer Group Median -5.6 -0.3 -1.9 1.9 3.8 N/A -10.4 16.7 -3.3 14.3 24.1 N/A N/A N/A N/A N/A

Pictet Emerging Local Currency Debt Fund Rank 43 72 70 85 N/A N/A 49 70 38 N/A N/A N/A N/A N/A N/A N/A

0.0

1.5

3.0

4.5

6.0

Re

turn

(%)



Pictet Emerging Local Currency Debt Fund



0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Pictet Emerging Local Currency Debt Fund 2.1 9.6 2.5 -1.3 0.9 0.3 1.0 -1.7 6.0 11.8 4y 3m

JPM GBI-EM Global Diversified 3.7 10.2 4.1 0.0 1.0 0.4 0.0 N/A 6.1 0.0 4y 3m


Manager EvaluationPictet Emerging Local Currency Debt Fund vs. JPM GBI-EM Global DiversifiedAs of September 30, 2014

53




0.0

20.0

40.0

60.0

80.0

AAA AA ABBB BB B

Below

B

Not Rat

ed

0.0 0.1

31.2

53.0

15.7

0.0 0.0 0.00.2 0.1

26.2

49.3

13.5

0.0 0.8

9.9


Portfolio Benchmark



Avg. Quality BBB BBB+


Country/Region Distribution (%)



0.0

15.0

30.0

45.0

60.0

Asia

Eastern

Europe

Latin

Americ

a

Africa

Oth

ers

24.7

34.1

29.3

11.9

0.0

23.3

30.5

24.2

12.010.0




0.0

50.0

100.0

150.0

-50.0

Treasu

ries

Credi

t

Cas

h

100.0

0.0 0.0

90.1

-0.9

10.8

Manager EvaluationPictet Emerging Local Currency Debt Fund vs. JPM GBI-EM Global DiversifiedAs of September 30, 2014

54


Comparative Performance and Rolling Return Risk and Return (Oct-2009 - Sep-2014)


Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

GMO Asset Allocation Fund -2.8 2.5 6.9 9.8 7.7 7.0 12.5 10.4 1.7 7.4 22.4 -19.4 8.6 12.1 9.5 13.4

65% MSCI World (Net) / 35% BC Aggregate -1.3 4.0 9.3 12.4 8.7 6.6 15.9 11.9 -0.7 10.5 21.6 -26.9 8.4 14.4 7.1 11.1

6.0

7.0

8.0

9.0

10.0

11.0

Re

turn

(%)

6.8 7.2 7.6 8.0 8.4 8.8 9.2 9.6 10.0Risk (Standard Deviation %)

65% MSCI World (Net) / 35% BC Aggregate

GMO Asset Allocation Fund

Rolling 3 Years Active Return Quarterly Active Return

0.0

8.0

16.0

24.0

-8.0

-16.0

Ac

tive

Re

turn

(%)

3/97 9/98 3/00 9/01 3/03 9/04 3/06 9/07 3/09 9/10 3/12 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

GMO Asset Allocation Fund 7.7 8.0 7.7 0.3 0.8 1.0 2.3 -0.5 4.7 35.0 17y 11m

65% MSCI World (Net) / 35% BC Aggregate 8.7 9.2 8.8 0.0 1.0 1.0 0.0 N/A 5.6 0.0 17y 11m


Manager EvaluationGMO Asset Allocation Fund vs. 65% MSCI World (Net) / 35% BC AggregateAs of September 30, 2014

55

US Quality12.7%

US Opportunistic Value4.6%

Asset Backed Securities

Emerging Country Debt3.6%

Alpha Only11.8%

Cash and Cash Equivalents

4.7%

Manager EvaluationGMO Asset Allocation FundAs of September 30, 2014

17.3%

25.9%

8.0%6.2%

26.0%

16.5%

10.0%

15.0%

20.0%

25.0%

30.0%

Fund Composition Asset Class Weights

Europe Value20.0%

Other International Opportunistic Value

1.2%Japan4.7%Emerging Markets

8.0%Systematic Global Macro3.7%

Risk Premium2.5%

Developed Rates17.7%

Securities4.7%

6.2%

0.0%

5.0%

56




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

PIMCO All Asset Fund I -2.9 3.8 5.2 8.0 7.5 6.4 0.8 15.4 2.4 13.7 23.0 -15.5 8.7 5.3 6.5 11.8

Barclays U.S. Treasury Inflation Notes: 1-10 Year -2.0 1.9 0.6 0.9 3.4 4.0 -5.6 5.0 8.9 5.2 12.0 -2.4 11.4 1.6 1.9 7.1

-4.0

0.0

4.0

8.0

12.0

16.0

Re

turn

(%)

2.1 2.8 3.5 4.2 4.9 5.6 6.3 7.0 7.7 8.4Risk (Standard Deviation %)

Barclays U.S. Treasury Inflation Notes: 1-10 Year

PIMCO All Asset Fund I


0.0

8.0

16.0

24.0

-8.0

-16.0

Ac

tive

Re

turn

(%)

12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

PIMCO All Asset Fund I 7.5 6.6 7.5 4.4 0.9 1.1 5.6 0.7 3.7 80.0 12y 2m

Barclays U.S. Treasury Inflation Notes: 1-10 Year 3.4 3.8 3.4 0.0 1.0 0.9 0.0 N/A 2.7 0.0 12y 2m


Manager EvaluationPIMCO All Asset Fund I vs. Barclays U.S. Treasury Inflation Notes: 1-10 YearAs of September 30, 2014

57

Manager EvaluationPIMCO All Asset Fund I Sector AllocationsAs of September 30, 2014

U.S. Equity Strategies

2.4%

Global Equity Strategies

24.0%

Inflation Related Strategies

10.9%

Alternative Strategies

14.9%

U.S. Core & Long Maturity Bond

Strategies15.3%

Credit Strategies11.5%

EM & Global Bond Strategies

20.8%

Short-Term Strategies

0.3%

58




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

UBS Trumbull Property Fund 2.9 7.5 9.6 9.3 10.0 6.7 9.2 9.0 12.1 15.9 -22.9 -8.3 12.8 15.6 20.1 13.5

NCREIF Fund Index-Open End Diversified Core Equity 0.0 5.4 8.6 10.9 11.3 6.4 13.3 11.0 16.0 16.1 -30.7 -10.4 16.1 16.1 20.2 12.6

8.0

10.0

12.0

14.0

Re

turn

(%)


NCREIF Fund Index-Open End Diversified Core Equity

UBS Trumbull Property Fund


0.0

4.0

8.0

-4.0

-8.0

-12.0

Ac

tive

Re

turn

(%)

3/78 6/81 9/84 12/87 3/91 6/94 9/97 12/00 3/04 6/07 9/10 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

UBS Trumbull Property Fund 10.0 3.2 9.6 2.1 0.7 3.0 2.0 -0.6 1.4 20.0 36y 9m

NCREIF Fund Index-Open End Diversified Core Equity 11.3 4.0 10.9 0.0 1.0 2.7 0.0 N/A 1.9 0.0 36y 9m


Manager EvaluationUBS Trumbull Property Fund vs. NCREIF Fund Index-Open End Diversified Core EquityAs of September 30, 2014

59

Property Type

UBS Trumbull Property Fund NCREIF Property Index

0.0

15.0

30.0

45.0

60.0

Offi

ce

Apartm

ent

Ret

ail

Indus

trial

Oth

er

Hot

el

36.6

24.7 23.3

13.7

0.0 1.7

31.033.0

22.0

9.0

0.0

5.0


Portfolio Benchmark

# Properties 198 7,170

# Investors 411 N/A

Total Fund Assets 15,400 395,434

Property Location

UBS Trumbull Property Fund NCREIF Property Index

0.0

15.0

30.0

45.0

60.0

East

Wes

t

South

Mid

wes

t

34.3 35.4

20.8

9.5

40.4

23.0

14.3

22.3

Manager EvaluationUBS Trumbull Property Fund vs. NCREIF Property IndexAs of September 30, 2014

60

Type City

Acquisition

Date

%

Occupancy Cost ($000)

Fair Market

Value ($000)

Office New York Jun-06 100% 664,900$ 664,900$

Office Boston Dec-11 89% 657,691$ 657,691$

Retail Cambridge May-89 96% 559,300$ 561,377$

Retail Dallas Dec-02 90% 505,000$ 505,000$

Apartments New York Jul-11 95% 463,000$ 463,000$

Office New York Jul-11 97% 275,213$ 457,308$

Retail Chicago Nov-13 95% 249,108$ 444,227$

Office New York Sep-14 92% 273,599$ 443,349$

Office Chicago Dec-11 100% 435,000$ 435,768$

As of September 30, 2014

20 Largest Investments

Manager EvaluationUBS Trumbull Property FundAs of September 30, 2014

Office Chicago Dec-11 100% 435,000$ 435,768$

Retail Emeryville Aug-14 99% 305,442$ 305,442$

Retail Montebello Dec-88 97% 281,000$ 281,000$

Office Washington May-06 80% 262,000$ 262,000$

Office Denver Jun-06 94% 250,000$ 250,000$

Office Seattle Oct-84 80% 250,000$ 250,000$

Apartments Brooklyn Dec-07 95% 240,000$ 240,000$

Office San Francisco Dec-85 89% 214,000$ 216,504$

Office Denver Apr-82 91% 213,000$ 213,000$

Office Pasadena May-84 97% 209,000$ 209,000$

Retail Millbury Sep-04 97% 190,800$ 190,800$

Apartments Arlington Mar-13 94% 66,628$ 188,953$

All other investments -- -- 10,688,765$ 10,692,363$

Total Properties 17,253,446$ 17,931,682$

61


Comparative Performance and Rolling Return Risk and Return (Apr-2010 - Sep-2014)

Historical Statistics (Apr-2010 - Sep-2014)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Wellington Diversified Inflation Hedges -8.0 -0.3 2.4 1.9 N/A N/A -3.9 5.2 -8.6 N/A N/A N/A N/A N/A N/A N/A

Wellington DIH Multi-Asset Inflation Index -8.1 -1.1 0.4 1.5 2.3 4.9 -2.1 2.3 -7.0 12.7 30.0 -32.7 25.8 14.1 19.7 16.0

0.0

0.8

1.6

2.4

3.2

Re

turn

(%)

13.2 13.8 14.4 15.0 15.6 16.2 16.8Risk (Standard Deviation %)

Wellington DIH Multi-Asset Inflation Index

Wellington Diversified Inflation Hedges


0.0

2.0

4.0

-2.0

-4.0

Ac

tive

Re

turn

(%)

6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 9/14



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Wellington Diversified Inflation Hedges 1.8 15.8 3.0 0.8 1.1 0.2 2.3 0.4 10.8 61.1 4y 6m

Wellington DIH Multi-Asset Inflation Index 1.0 14.2 2.0 0.0 1.0 0.1 0.0 N/A 9.9 0.0 4y 6m


Manager EvaluationWellington Diversified Inflation Hedges vs. Wellington DIH Multi-Asset Inflation IndexAs of September 30, 2014

62

Manager EvaluationWellington Diversified Inflation Hedges Sector AllocationAs of September 30, 2014

Energy28.7%

TIPS8.1%

Emerging Markets

Inflation-Linked Bonds5.7%

Cash6.7%

3.9%5.3%

0.7%

0.0%

5.0%

10.0%

15.0%

20.0%

Fund Composition Fund Weights Relative to Benchmark

Energy29.6%

TIPS12.0%

Emerging Markets

Inflation-Linked Bonds3.1%

Cash0.7%

Metals & Mining3.0%

Agriculture5.1%

Enduring Assets11.7%

Precious Metals8.7%

Commodities22.4%

Global Inflation-Sensitive Equities

Commodities

Fixed Income & Cash

-9.9%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

Equities Fixed Income Commodities Cash

Metals & Mining7.3%

Agriculture4.7%

Enduring Assets5.2%

Precious Metals2.0%

Inflation Opportunities

5.1%

Commodities30.3%

63

Calendar Year Performance

64

YearTo

Date 2013 2012 2011 2010 2009 2008 2007 2006 2005

Total Composite 3.3 10.9 12.1 1.2 11.2 20.2 -20.2 10.7 11.8 5.6

Policy Benchmark 2.8 12.5 11.6 1.1 11.5 19.5 -20.6 8.3 13.0 5.7

Total Equity Composite 3.5 N/A N/A N/A N/A N/A N/A N/A N/A N/A

MSCI AC World Index 3.7 22.8 16.1 -7.3 12.7 34.6 -42.2 11.7 21.0 10.8

Domestic Equity Composite 5.4 (19) N/A N/A N/A N/A N/A N/A N/A N/A N/A

Russell 3000 Index 7.0 (8) 33.6 (40) 16.4 (26) 1.0 (16) 16.9 (39) 28.3 (59) -37.3 (38) 5.1 (62) 15.7 (31) 6.1 (63)

Broad Equity Peer Group Median 3.9 32.5 14.6 -2.1 16.2 29.6 -38.4 6.5 13.6 7.0

International Equity Composite -0.2 (39) N/A N/A N/A N/A N/A N/A N/A N/A N/A

MSCI AC World ex USA Index 0.0 (36) 15.3 (54) 16.8 (72) -13.7 (32) 11.2 (74) 41.4 (64) -45.5 (36) 16.7 (66) 26.7 (55) 16.6 (86)

International Equity Peer Group Median -0.8 15.6 18.5 -15.2 13.6 44.1 -47.0 18.3 27.0 19.7

Fixed Income Composite 3.0 (43) -1.7 (82) 10.9 (1) 3.8 (72) 8.7 (10) 18.9 (8) -3.4 (70) 6.4 (26) 5.6 (8) 2.8 (1)

Barclays Intermediate U.S. Government/Credit 2.2 (73) -0.9 (55) 3.9 (70) 5.8 (22) 5.9 (54) 5.2 (100) 5.1 (13) 7.4 (9) 4.1 (42) 1.6 (46)

Intermediate Duration Fixed Income Peer Group Median 2.6 -0.6 5.1 4.6 6.1 9.8 -1.8 5.5 4.0 1.5

Tactical Asset Allocation Composite 2.5 12.5 10.4 1.7 7.4 22.4 -19.4 8.6 12.3 5.0

60% World / 40% Agg 4.0 14.5 11.3 0.0 10.2 20.4 -24.7 8.3 13.6 6.7

Alternatives Composite 4.5 N/A N/A N/A N/A N/A N/A N/A N/A N/A

3 Month T-Bills + 3% 2.3 3.1 3.1 3.1 3.1 3.2 5.1 8.2 8.0 6.2

Calendar Year PerformanceComposite PerformanceAs of September 30, 2014

_________________________See appendix for a description of the benchmarks and universe. Performance is reported net of fees.

65

Capital Markets Review

66

-16

-14

-12

-10

-8

-6

-4

-2

0

2

4

Perc

en

t

Yen Yuan Real Ruble Euro

Capital Markets ReviewEconomy

Currencies Fall vs. U.S. Dollar Retail Sales and Unemployment

Source: BloombergSource: Trading Economics

-10

-5

0

5

10

15

Perc

en

t

Retail Sales, QuarterlyRate of Change

Unemployment Rate

Source: Economy.com

Foreign Growth Weakens, U.S. Dollar Becomes Safe Haven

• An expansion of Russia’s invasion of Ukraine, Israel’s military actions to clearGaza of missiles and tunnels used by attackers, and ISIS conquering territoryacross Iraq caused investors to pull monies out of Europe and Asia for theperceived safety of the U.S. dollar and Treasury bonds. The rapid ascent of theU.S. dollar sent foreign investment values sharply lower versus their local-currencyreturns.

• A wave of economic weakness enveloped Europe, Japan, Brazil, China and manysmaller countries. The European Central Bank (ECB) inched closer towardpurchasing asset-backed bonds, while further lowering its deposit rate to -0.2%.With the German economy near a zero-growth rate and countries such as Greeceand Spain pleading for an end to austerity, the Eurozone economy offered littlenear-term outlook for growth. Hopes turned to the ECB to offer a Federal Reserve-style bailout and inflate the flagging economy, though the bank has been reluctantto put plans into action based on German leaders’ protests. The impendingculmination of the Federal Reserve’s asset purchases was a late-quarter headwindfor stocks.

• The U.S. economy faced a perplexing mix of economic readings. Theunemployment rate fell to 5.9%, though the number of workers leaving theworkforce remained dauntingly high. Retail sales were choppy, yet on an upwardtrend. A steep drop in oil prices, brought on by increased U.S. production, will be anegative for upcoming energy spending, due to falling gasoline prices, but will be abroader benefit for the economy.

Central Bank Interest Rates

Source: Bloomberg

-1

0

1

2

3

4

5

6

Perc

en

t

Central Bank Interest Rates

ECB Deposit Rate

Federal Reserve Target Rate

China 1-Year Deposit Rate

67

Third Quarter and YTD 2014 Sector Returns

Capital Markets ReviewEquities

Third Quarter 2014 World Equity Returns (USD)

3.6%

12.3%

1.0%

6.6%

0.3%

7.0%

6.1%

6.9%

6.6%

11.8%

15.2%

-9.1%

-4.9%

-2.9%

-1.6%

-0.7%

0.0%

0.8%

1.5%

2.2%

3.6%

4.5%

-12.0% -7.0% -2.0% 3.0% 8.0% 13.0% 18.0%

Energy

Utilities

Industrials

Materials

Cons. Disc.

Russell 3000

Financials

Cons. Staples

Telecom

Info Tech

Health Care 3Q14

YTD

-16.0%

-12.0%

-8.0%

-4.0%

0.0%

4.0%

8.0%

12.0%

-5.3%

1.1%

-3.6%-4.5%

-5.9%-7.0%

-8.7%

-1.6%-3.5%

-5.5%

-8.0%

-12.4%

Developed Markets Emerging Markets

Russell 1000 Index vs. Russell 2000 Index Equity Markets Cool Off as Strengthening USD Impact Felt

• The Russell 3000 Index advanced for a seventh consecutive quarter, albeit avery modest gain in comparison to recent quarters. After setting a number ofnew all-time highs during the quarter, major domestic equity indices retreated inthe latter half of September as a result of heightened geopolitical worries anddisappointing economic data internationally. Sector performance varied widelyduring the quarter. Health care and information technology were the bestperforming sectors, boosted by M&A activity, while the energy and utilitiessectors struggled as the price of oil and other commodities plummeted.

• Small-cap stocks severely underperformed their large-cap counterparts andexperienced their worst quarterly decline since September 2011. The quarterlyunderperformance versus large-caps was the largest since March 1999.Increased geopolitical tensions and concerns over future interest rate hikesdecreased investor risk appetite for small-cap companies.

• Emerging markets, though outperforming developed international markets,declined 3.5% due to falling commodity prices, currency weakness, and poorChinese economic data. Developed international markets fell 5.9%. Economicdata out of Europe was particularly poor, calling into question the region’s futuregrowth prospects. Additionally, the strengthening U.S. dollar negatively impacteddeveloped markets as the dollar appreciated versus all major currencies.

0.7%

-7.4%

-0.2%

-8.6%

1.5%

-6.1%

8.0%

-4.4%

8.1%

-4.7%

7.9%

-4.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Russell1000Index

Russell2000Index

Russell1000Value

Russell2000Value

Russell1000

Growth

Russell2000

Growth

3Q14

YTD

Broad Value Growth

68

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

YT

D T

ota

l Re

turn

Date

US Agg US Credit High Yield

Global Agg EMD MBS

Source: Barclays

Source: Barclays

Duration-adjusted Excess Returns to Treasuries (bps) Cumulative Year-to-Date Total Returns

Capital Markets ReviewFixed Income

Best Period Second Best Period Worst Period Second Worst Period

2007 2008 2009 2010 2011 2012 2013 1Q14 2Q14 3Q14

Aggregate -206 -710 746 171 -114 226 93 16 52 -28

Agency -56 -110 288 77 -25 166 1 30 50 -11

MBS -177 -232 495 225 -106 91 98 -24 90 -27

ABS -634 -2223 2496 169 52 246 24 19 30 -5

CMBS -435 -3274 2960 1501 47 841 97 65 55 -36

Credit -464 -1786 1990 192 -322 693 226 75 81 -67

High Yield -777 -3832 5955 974 -240 1394 923 199 137 -205

Emerging -457 -2842 3797 508 -537 1503 -32 127 282 -112

Source: Barclays

US Treasury Yield Curve Change by Maturity

Source: US Dept of The Treasury

Spreads Reverse Course in Q3

• Bond market volatility picked up during the third quarter, highlighted by a flight-to-quality in long term rates and wider spreads across corporate andsecuritized credit markets. TIPS produced negative total returns as inflationarypressures eased amid plunging commodity prices and a strengthening dollar.

• The yield curve flattened during the quarter. Ongoing geopolitical tensions anda rally in European government rates contributed to strong demand for longerterm U.S. Treasuries, while continued tapering and a more hawkish tone fromthe Fed caused shorter maturity yields to rise. The spreads between five- and30-year Treasuries continued to decrease and reached the lowest level sinceJanuary 2009.

• Corporate credit returns suffered during the quarter as safe-haven demandincreased and supportive technical factors faded. High yield credit wasparticularly vulnerable during the quarter due to heavy new issuance coupledwith asset outflows. Despite selling pressure in the third quarter, spread sectortotal returns remain positive year-to-date.

-1.0%

-0.8%

-0.6%

-0.4%

-0.2%

0.0%

0.2%

0.4%

Ch

an

ge

in

Yie

ld

Maturity (Years)

3Q14

YTD Ending 3Q14

69

Capital Markets ReviewHedge Funds

HFRI Index Performance – Third Quarter and YTD 2014

Growth of Assets in Hedge Funds

Hedge Fund Return Capture RatioAll Funds Median Net Return/MSCI AC World, %

4.1%

3.7%

2.4%

3.1%

1.7%

3.8%

2.8%

2.1%

1.9%

2.4%

2.2%

0.2%

-2.3%

0.3%

-0.1%

-0.2%

2.7%

-1.5%

0.4%

-1.3%

-2.9%

-1.2%

-4% -2% 0% 2% 4% 6%

BC Aggregate Bond Index

MSCI All-Country World Index

Fund of Funds

Hedge Fund Composite

Merger Arbitrage

Global Macro

EventDriven

Equity Market Neutral

Equity Hedge

Distressed Securities

Convertible Arbitrage

Q3

YTD

27%

46%

62%

33%

44% 45%

31%

52%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2008 2009 2010 2011 2012 2013 Aug '14 YTD

Sep '14 YTD

% Downside in Down Years % Upside in Up YearsSource: Morgan Stanley Prime Brokerage

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Q12014

Q2014

Q32014

Assets

($M

M)

Net Asset Flow Estimated Assets

Source: HFR Inc.

Largest U.S. Public Pension Plan Exits Hedge Funds

• Hedge fund manager performance was generally negative across strategies during thethird quarter. With the exception of distressed securities managers, however, hedge fundsgenerally outpaced the MSCI All-Country World Index during the quarter. Global macrowas the top performing strategy for the quarter (+2.7%) and consequently one of the bestperforming strategies year-to-date.

• The median hedge fund manager tends to lag global equities during strong up markets,but fares better during down months such as September. The median hedge fund trailedequities significantly year-to-date through August. Following September's decline, themedian hedge fund manager has captured just over half of this year’s equity marketreturn, according to Morgan Stanley Prime Brokerage.

• California Public Employees’ Retirement System (CalPERS), the largest public pensionplan in the U.S., announced that it will exit its $4 billion hedge fund program over the nextyear, in an effort simplify its strategy and reduce costs. The Plan’s large asset size ($298billion in total assets) and desire to hire managers willing to provide fee concessionslimited the universe of managers from which it could select, and likely inhibited theperformance of its hedge fund allocation.

• The hedge-fund industry saw inflows of $15.8 billion during the third quarter according toHedge Fund Research. Event driven and relative value managers attracted $11.4 and$11.1 billion, respectively, while macro hedge funds saw a withdrawal of $11.1 billionduring the quarter.

Hedge Fund Assets and Flows

70

-11.8%

-5.6%-6.6%

-5.3%

-1.4% -1.0%

14%

12%

10%

-8%

-6%

-4%

-2%

0%

QTD YTD 1 Year 3 Years 5 Years 10 Years

Capital Markets ReviewReal Assets

Returns as of September 30, 2014

Source: Bloomberg

Bloomberg Commodity Index Returns for Periods Ended September 30, 2014

NCREIF 3 Mon. YTD 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.

NCREIF 2.9% 5.7% 11.2% 11.3% 9.7% 8.6%

Apartments 2.4% 4.7% 9.9% 11.3% 10.8% 8.3%

Industrials 3.3% 6.1% 12.6% 11.9% 9.1% 8.2%

Office 2.9% 5.2% 10.3% 10.1% 8.6% 8.3%

Retail 3.2% 7.7% 13.5% 13.2% 10.8% 10.0%

Hotel 2.6% 3.4% 8.0% 7.9% 6.2% 6.8%

East 2.3% 4.4% 9.0% 9.7% 9.3% 8.5%

Midwest 2.8% 5.4% 10.5% 10.7% 8.7% 7.2%

South 3.2% 6.7% 13.1% 12.4% 10.0% 8.7%

West 3.4% 6.5% 12.5% 12.5% 10.2% 9.3%Source: NACREIF

Equity REIT Yields Are Low, Although They Provide A Premium to Treasuries; Mortgage REIT Yields Remain Elevated

Real Estate Fundamentals Remain Strong; Commodities Tank

• Equity REITs declined 2.5% during the third quarter, bringing the year-to-date returnto 13.4%. Strong property fundamentals and a continued search for yield were offsetby the possibility of rising U.S. interest rates. Since quarter end, concerns haveshifted to slower economic growth and interest rates have fallen, making the 3.8%yield on U.S. equity REITs look fairly attractive. Foreign REITs have underperformedthe U.S. market with Asia Pacific and Europe returning 0.0% and 5.6%, year to date.

• Private real estate continued to perform well, returning 2.9% during the secondquarter and 5.7% for the first half of 2014. Strong fundamentals (net operatingincome growth and transaction volume), along with low interest rates, contributed to afurther decline in capitalization rates, now at 6.8% according to Real CapitalAnalytics. The cap rate remains well below the long term trend rate, but relative toTreasuries, cap rates remain around average levels since the 1990s. Income returnsare averaging around 5.0%, also below historical levels but favorable relative toTreasury yields.

• Commodity prices declined dramatically during the third quarter, bringing year-to-dateand returns out to ten years into negative territory. The IEA’s forecast of weakerdemand growth for oil, along with favorable supply dynamics, and a strengtheningU.S. dollar, drove oil prices lower. An abundant harvest led to lower grain prices,while industrial metals prices suffered from weaker global demand, especially out ofChina. A strong U.S. dollar with little sign of inflation led to weaker gold demand andprices.

Source: NAREIT

0

5

10

15

20

25

30

Se

p-1

97

4

Se

p-1

97

6

Se

p-1

97

8

Se

p-1

98

0

Se

p-1

98

2

Se

p-1

98

4

Se

p-1

98

6

Se

p-1

98

8

Se

p-1

99

0

Se

p-1

99

2

Se

p-1

99

4

Se

p-1

99

6

Se

p-1

99

8

Se

p-2

00

0

Se

p-2

00

2

Se

p-2

00

4

Se

p-2

00

6

Se

p-2

00

8

Se

p-2

01

0

Se

p-2

01

2

Se

p-2

01

4

Perc

ent

Equity REITs

Mortgage REITs

10-Year Treasury

71

0

2

4

6

8

10

12

14

16

18

20

0

5

10

15

20

25

30

35

40

Agg. V

alu

e ($

,Billio

ns

)

# o

f D

ea

ls

Venture-Backed IPOs # Venture-Backed IPOs $ Value

Venture-Backed IPO ActivityInvestment Horizon Pooled IRR as of 03/31/14

Fund Type 3 Months 1 Year 3 Years 5 Years 10 Years 20 Years

Early Stage VC 5.3% 31.5% 15.7% 14.6% 9.2% 44.1%

Late/Expansion Stage VC 3.5% 32.6% 14.4% 18.6% 12.3% 11.0%

Multi-Stage VC 5.3% 28.3% 13.4% 12.2% 10.2% 12.3%

All Venture Capital 5.1% 30.5% 14.8% 14.2% 9.8% 26.1%

Small Buyouts 1.8% 12.3% 11.6% 16.8% 19.6% 14.5%

Medium Buyouts 1.9% 15.3% 10.2% 14.3% 17.1% 15.8%

Large Buyouts 3.2% 18.8% 11.9% 16.7% 15.5% 16.1%

Mega Buyouts 3.4% 22.2% 13.9% 18.8% 12.3% 10.9%

All Buyouts 3.1% 19.9% 12.7% 17.4% 14.3% 13.4%

Mezzanine/Sub Debt 2.6% 11.8% 11.4% 12.9% 9.8% 9.7%

Distressed 2.8% 16.2% 10.9% 20.0% 11.6% 11.9%

All Private Equity 3.3% 19.9% 12.4% 16.8% 13.1% 14.6%

S&P 500 1.8% 21.8% 14.4% 20.6% 8.5% 8.7%

Capital Markets ReviewPrivate Equity

Venture-Backed IPOs # Venture-Backed IPOs $ Value

$0

$20

$40

$60

$80

$100

$120

$,B

illions

VC Buyout Real Assets Secondary Funds Distressed/SS

Fundraising, IPO Activity Remain Strong Despite Modest Declines

• Private equity market performance data through June 30, 2014 was not yetavailable at the time of report production. During 1Q14, private equity fundsoutperformed their public market counterparts with venture capital and buyoutfunds producing pooled quarterly IRRs of 5.1% and 3.1%, respectively,compared to a 1.8% return for the S&P 500. Early stage venture funds were thestrongest performers while small- and mid-cap buyout funds lagged.

• During 3Q14, private equity fundraising saw a modest decline from the post-crisis high seen in 2Q14. However, the $97 billion raised by private equity fundsin 3Q14 was in line with the quarterly average seen since early 2013 when thepace of fundraising picked up considerably. Venture capital and secondaryfunds saw the biggest percentage declines during the third quarter whiledistressed/special situations funds saw an increase in commitments.

• Venture-backed IPO activity slowed during 3Q14 as 23 venture-backed IPOsraised an aggregate $2.6 billion compared to 2Q14 when 28 IPOs raised $4.9billion. However, it was the sixth consecutive quarter with more than 20venture-backed IPOs after that mark was exceeded in only one other quartersince the beginning of 2008. Biotechnology companies dominated IPO activityduring 3Q14, representing 18 of the 23 IPOs that occurred during the quarter.

Source: ThomsonOne/Cambridge Associates database, October 2014.Note: Data is continuously updated and is therefore subject to change.

S&P 500 1.8% 21.8% 14.4% 20.6% 8.5% 8.7%

Source: Thomson Reuters, ThomsonOne database, October 2014.

Source: Thomson Reuters, ThomsonOne database, October 2014.

Global Fundraising

72

Quarter

YearTo

Date1

Year2

Years3

Years5

Years7

Years10

Years

Domestic Equity Indices

Dow Jones Wilshire 5000 0.0 6.9 17.7 19.8 23.0 15.9 6.5 8.7

S&P 500 1.1 8.3 19.7 19.5 23.0 15.7 6.0 8.1

Russell 1000 Index 0.7 8.0 19.0 20.0 23.2 15.9 6.3 8.5

Russell 1000 Growth Index 1.5 7.9 19.1 19.2 22.4 16.5 7.6 8.9

Russell 1000 Value Index -0.2 8.1 18.9 20.6 23.9 15.3 4.8 7.8

Russell Midcap Index -1.7 6.9 15.8 21.7 23.8 17.2 7.5 10.3

Russell Midcap Growth Index -0.7 5.7 14.4 20.8 22.7 17.1 7.5 10.2

Russell Midcap Value Index -2.6 8.2 17.5 22.5 24.7 17.2 7.3 10.2

Russell 2000 Index -7.4 -4.4 3.9 16.3 21.3 14.3 6.0 8.2

Russell 2000 Growth Index -6.1 -4.0 3.8 17.5 21.9 15.5 6.9 9.0

Russell 2000 Value Index -8.6 -4.7 4.1 15.0 20.6 13.0 5.1 7.3

International Equity Indices

MSCI EAFE -5.9 -1.4 4.3 13.6 13.6 6.6 -0.2 6.3

MSCI EAFE Growth Index -5.5 -2.2 2.9 12.6 13.3 7.6 0.3 6.6

MSCI EAFE Value Index -6.2 -0.6 5.7 14.6 13.9 5.5 -0.8 5.9

MSCI EAFE Small Cap -7.8 -2.7 3.0 15.5 14.5 8.9 2.0 8.1

MSCI AC World Index -2.3 3.7 11.3 14.5 16.6 10.1 2.4 7.3

MSCI AC World ex US -5.3 0.0 4.8 10.5 11.8 6.0 -0.2 7.1

MSCI Emerging Markets Index -3.4 2.7 4.7 3.0 7.6 4.8 0.1 11.0

Fixed Income Indices

Barclays U.S. Aggregate 0.2 4.1 4.0 1.1 2.4 4.1 4.9 4.6

Barcap Intermediate U.S. Government/Credit 0.0 2.2 2.2 0.8 2.0 3.4 4.3 4.0

Barclays U.S. Long Government/Credit 1.0 13.0 12.9 1.7 4.7 8.0 8.2 7.0

Barclays US Corp: High Yield -1.9 3.5 7.2 7.2 11.1 10.6 8.7 8.3

BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.1 0.1 0.1 0.5 1.6

Barclays U.S. Treasury: U.S. TIPS -2.0 3.7 1.6 -2.3 1.3 4.5 4.9 4.6

Citigroup Non-U.S. World Government Bond -5.4 0.2 -1.0 -3.3 -1.1 1.0 3.6 4.0

JPM EMBI Global Diversified (external currency) -0.6 8.0 9.7 2.6 8.0 8.0 7.9 8.3

JPM GBI-EM Global Diversified (local currency) -5.7 0.0 -1.5 -2.6 2.2 4.4 5.4 8.8

Real Asset Indices

Dow Jones - UBS Commodity -11.8 -5.6 -6.6 -10.5 -5.3 -1.4 -5.2 -1.0

Dow Jones Wilshire REIT -3.1 14.5 13.5 9.3 16.5 16.0 3.8 8.3

Capital Markets ReviewIndex ReturnsAs of September 30, 2014

(Percentage Return)

_________________________Returns for periods greater than one year are annualized.

73

Appendix

74

2013 Action

September • The Metropolitan St. Louis Sewer District hired Pavilion Advisory Group as their investment consultant.

2014 Action

February • Pavilion presented an asset allocation and investment and manager structure review to the Finance Committee. Pavilion recommended the

adoption of new asset allocation targets and allowable ranges that would permit the elimination of the tactical asset allocation and market neutral

strategies, the addition of hedge fund strategies through hedge fund of funds, and the reduction of the number of managers and exposure to high

yield and non-US debt in the fixed income portfolio. The following asset allocation structure was proposed:

40% Equity

35% Fixed Income

25% Alternatives

AppendixHistory of Investment Decisions

Given Pyramis' poor performance and rapidly declining assets in the strategy, Pavilion further recommended the manager be terminated

immediately. The Committee approved these recommendations.

September • Pavilion downgraded PIMCO’s manager rating status from “negative watch” to “sell.” Pavilion initially downgraded PIMCO to “negative watch”

in January following the departure of co-CIO Mohamed El-Erian, and noted we would closely monitor the firm for organizational stability, asset

flows, and performance. PIMCO has not made clear improvements in these areas, and the departure of Bill Gross creates a multitude of future

unknowns for the firm.

75

All Total Composite, asset class composite and manager returns in this report are shown net of fees as of September 1, 2013.

Total Composite returns prior to September 1, 2013 were provided by New England Pension Consultants.

Separate account manager returns prior to September 1, 2013 were provided by the investment managers and are displayed net of fees.

Benchmark ComparisonOne relative comparison for a fund is with a market index or blend of indices. We call this a benchmark comparison. The benchmark should be predefined as an objective. This passive investment alternative is one measure for evaluating relative performance success.

Universe ComparisonA performance measurement universe is created by arraying the results of a large number of professional investment managers from the best to worst. Results are grouped in percentiles. The first percentile represents the top performing 1% of the managers; the 99th percentile represents the bottom performing 1% of managers.

Performance measurement universes are differentiated by time period and asset classes. Investment manager rankings within these broad

AppendixBenchmark and Universe Descriptions

Performance measurement universes are differentiated by time period and asset classes. Investment manager rankings within these broad universes will vary throughout market cycle depending on the manager's investment style or philosophy. Over longer time periods (7 to 10 years or more), a manager ranking in the top quartile (top 25%) of these broad universes would be perceived as performing well.

Policy BenchmarkAs of April 1, 2014, The Policy Benchmark consists of 21% Russell 1000 Index, 6% Russell 2000 Index, 11% MSCI EAFE Index, 3% MSCI Emerging Markets Index, 10% 65% MSCI World/35% BC Aggregate Blend Index, 2% 50% BC Credit/25% S&P LSTA/25% BC High Yield Blend Index,14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 5% BofA Merrill Lynch US High Yield Cash Pay Index, 4% CPI+5%, 5% Wellington DIH Benchmark, 5% JPMorgan GBI-EM Diversified and 5% NCREIF Fund Index-OEDCE.

Prior to April 1, 2014, the Policy Benchmark is comprised of 20% Russell 1000 Index, 5% Russell 2000 Index, 10% MSCI EAFE Index, 3% MSCI Emerging Markets Index, 10% 65% MSCI World/35% BC Aggregate Blend Index, 2% 50% BC Credit/25% S&P LSTA/25% BC High Yield Blend Index, 13% BC Intermediate Gov/Credit Index, , 8% Citigroup World Government Bond Index, 5% BofA Merrill Lynch US High Yield, Cash Pay Index, 5% 3 Month T-Bills + 3%, 4% CPI + 5%, 5% Wellington DIH Multi-Asset Inflation Index, 5% JPM GBI-EM GlobalDiversified Index, and 5% NCREIF Fund Index-OEDCE.

Note: Wellington DIH Multi-Asset Inflation Index consists of 50% MSCI ACW Commodity Producers Index, 25% DJ AIG Commodity Total Return Index and 25% BC US Treasury Inflation Notes: 1-10 Year.

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