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Prepared for: Retirement Plan Quarterly Investment Review All Vendor Summary June 30, 2009 Pepperdine University Retirement Plan Plan Name: Quarter Ending:

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Page 1: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

Prepared for:

Retirement Plan

Quarterly Investment

Review

All Vendor Summary

June 30, 2009

Pepperdine University Retirement PlanPlan Name:

Quarter Ending:

Page 2: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

Section 1 – Market Overview

Industry Analysis

Section 2 – Diversified Plan Portfolio Summary

Fund Performance Summary

T. Rowe Price Retirement - Qualitative Analysis Summary

PortfolioXPress Allocation (underlying holdings)

Quantitative Analysis Summary

Fund Evaluation Analysis

Overlap Analysis

Range of Investments

Management Style Analysis

Portfolio Analysis

Portfolio Return vs. Custom Benchmark

Table of Contents

Section 3 – Diversified Plan Asset Allocation

Asset Allocation by Fund

Asset Allocation by Category

Asset Allocation Quarterly Comparison

Average Account Balance By Age

Asset Allocation by Age Group

Portfolio Xpress Models

Section 4 – Prudential Plan Portfolio Summary

Fund Performance Summary

Quantitative Analysis Summary

Fund Evaluation Analysis

Management Style Analysis

Portfolio Analysis

Portfolio Return vs. Custom Benchmark

Section 5 – Prudential Plan Asset Allocation

Asset Allocation by Fund

Asset Allocation by Category %

Asset Allocation Quarterly Comparison

Growth of Plan Assets

Section 6 – TIAA-CREF Plan Portfolio Summary

Fund Performance Summary

Quantitative Analysis Summary

Fund Evaluation Analysis

Management Style Analysis

Portfolio Analysis

Portfolio Return vs. Custom Benchmark

Section 7 – TIAA-CREF Plan Asset Allocation

Asset Allocation by Fund

Asset Allocation by Category %

Asset Allocation Quarterly Comparison ($ and %)

Growth of Plan Assets

Page 4: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

4

Source: Standard & Poor’s, FRB, BLS, BEA, JP Morgan. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan

sponsor use only.

Economic Growth

(GDP)

The U.S. economy remains in a deep recession, although there are signs that the slump is

reaching a trough. GDP fell by 6.3% in the fourth quarter followed by a 6.4% drop in the first

quarter. Second quarter GDP is estimated to be a 1.5% decline.

Employment

Unemployment continues to rise higher in response to big output declines. Even in a best case

scenario, the unemployment rate is likely to reach 10% by the end of the year based on

economists’ predictions. The current unemployment rate has reached 9.5% with over 6.5

million jobs lost since the beginning of the recession. There are currently an average of 6

applicants for each job posting.

Inflation (CPI)

Rebounding oil prices and rising CPI in early 2009 have eased deflation fears but they could revive

in a worsening recession. Longer term, some worry about higher inflation due to dramatic

monetary and fiscal easing. However, in a competitive economy, inflation will find it difficult to get

going before a return to full employment. Headline CPI fell 1.4% during the trailing 12 months

ending June 30th and Core CPI rose 1.7% during the same time period.

Interest Rates

The Federal Reserve is maintaining low short-term interest rates and buying Treasury and

mortgage bonds in an effort to hold long-term rates down. The asset purchases have not been

particularly successful so far and an economic recovery is likely to push Treasury rates higher,

suggesting bond investors will have to embrace some credit risk to avoid negative returns. The

current federal funds rate remains at 0.00% to 0.25%.

Yield Curve

Bond investors began selling off Treasuries during the second quarter pushing the 10-year

Treasury yield up from 2.7% at the end of the first quarter to 3.5% by the end of the second quarter

which has steepened the yield curve. The 90 day average spread between the 10-year

Treasury and the 90-day T-bill has increased to 315 bps, which is well above the historical

average of 182 bps.

Investment Returns

1Q09 2Q09 YTD 2008

Barclays Aggregate Bond Index 0.12% 1.78% 1.90% 5.24%

S&P 500 Index -11.01% 15.93% 3.16% -37.00%

MSCI EAFE Index -13.94% 25.43% 7.95% -43.38%

Economic Summary

2nd Quarter 2009 Market Overview

Page 5: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

5

Market Inflection Points, Recessions, and the Unemployment Rate

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 6: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

6

Economic Expansions and Recessions

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 7: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

7

Gross Domestic Product

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 8: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

8

Consumer Finances

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 9: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

9

Employment

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 10: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

10

Corporate Profits

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 11: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

11

Consumer Price Index

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 12: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

12

The Federal Reserve

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 13: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

13

Current Account Deficit and U.S. Dollar

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 14: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

14

Fixed Income Sectors Returns as of 6/30/2009

Source: Barclays Capital, FactSet, JPMorgan Asset Management.

Past performance is not indicative of future returns. Fixed income sectors shown above are provided by Barclays Capital and are represented by: Barclays Capital U.S. Aggregate Index; MBS: Fixed Rate MBS Index; Corporate: U.S. Corporates; Municipals: Muni Bond Index; Emerging Debt: Emerging Markets Index; High Yield: Corporate High Yield Index; Treasuries: Barclays Capital U.S. Treasury. TIPS: Barclays Capital Real TIPS.

The “balanced” portfolio assumes the following weights: 10% in MBS, 20% in Corporate, 15% in Municipals, 10% in Emerging Debt, 10% in High Yield, 25% in Treasuries, 10% in TIPS. Balanced portfolio assumes annual rebalancing.

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 15: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

15

Equity Asset Class Returns as of 6/30/2009

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 16: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

16

Equity Returns by Style as of 6/30/2009

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 17: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

17

Source: Standard & Poor’s, Russell Investment Group, JPMorgan Asset Management. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

S&P 500 Weight (%) 8.9% 12.0% 12.4% 13.6% 14.0% 9.9% 3.2% 18.3% 3.5% 4.1%

Russell 1000 Growth Weight (%) 10.1% 16.4% 4.3% 5.0% 17.2% 10.0% 3.9% 31.3% 0.6% 1.0%

Russell 1000 Value Weight (%) 9.0% 5.9% 19.6% 22.9% 9.9% 10.0% 3.6% 4.9% 6.4% 7.7%

2Q09 Return 18.1 9.8 10.7 35.7 8.9 18.9 16.3 19.7 3.4 10.2 15.9

YTD 2009 8.6 -1.8 -2.1 -3.4 0.2 -5.9 13.9 24.9 -4.0 -1.7 3.2

1 Year Annualized Return -16.8 -10.3 -41.4 -38.6 -11.5 -34.5 -38.9 -18.3 -19.3 -28.2 -26.2

3 Year Annualized Return -10.1 1.3 -2.2 -25.9 -2.5 -12.5 -5.6 -1.7 -3.5 -1.2 -8.2

5 Year Annualized Return -4.8 2.8 10.2 -13.5 -1.1 -4.2 1.1 -1.5 2.1 7.1 -2.2

10 Year Annualized Return -3.0 2.7 7.8 5.2 -0.1 -1.3 2.2 -6.1 -7.8 2.5 -2.2

15 Year Annualized Return 5.2 9.3 11.9 5.3 10.7 6.5 5.4 9.2 2.9 6.9 6.9

Forward P/E Ratio 14.7x 13.5x 14.5x 14.0x 11.4x 14.1x 19.2x 16.1x 12.4x 12.0x 13.9x

Trailing P/E Ratio 15.3x 14.7x 8.9x 19.7x 14.1x 11.3x 15.3x 16.7x 12.6x 12.2x 13.7x

Trailing 20-year Average P/E Ratio 19.9x 21.7x 19.3x 15.6x 24.8x 20.1x 20.1x 27.3x 18.6x 14.5x 19.9x

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S&P Index Sectors – Performance as of 6/30/2009

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2nd Quarter 2009 Market Overview

18

World Equity Market Returns as of 6/30/2009

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 19: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

2nd Quarter 2009 Market Overview

19

Index Definitions

All indexes are unmanaged and an individual can not invest directly in an index. Index returns do not include fees or expenses.

The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. This index includes a representative sample of 500 leading companies in leading

industries of the U.S. economy. Although the S&P 500 Index focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal

proxy for the total market.

The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index

The MSCI EAFE Index (Europe, Australia, Far East) is a widely recognized benchmark in the United States to measure international equity performance. It comprises 21 MSCI

country indexes, representing the developed markets outside of North America.

The MSCI Emerging Markets Indexsm is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

The Index consists of the following 25 emerging market country indices: Argentina, Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan,

Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

The MSCI Europe Indexsm is a free float-adjusted market capitalization index designed to measure developed market equity performance in Europe. The Index consists of the

following developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden,

Switzerland, and the United Kingdom.

The MSCI Pacific Indexsm is a free float-adjusted market capitalization index designed to measure equity market performance in the Pacific region. The Index consists of the

following developed market countries: Australia, Hong Kong, Japan, New Zealand and Singapore.

The Lehman Brothers U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The Index covers the U.S. investment grade fixed

rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are

subdivided into more specific indexes that are calculated and reported on a regular basis.

The U.S. Treasury Index is a component of the U.S. Government Index.

The Lehman Brothers High Yield Index covers the universe of fixed rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries

designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issues in non-EMG countries are

included. Original issue zeroes, step-up coupon structures, and 144-As are also included.

The Lehman Brothers Emerging Markets Index includes USD-denominated debt from emerging markets in the following regions: Americas, Europe, Middle East, Africa, and Asia.

As with other fixed income benchmarks provided by Lehman Brothers, the index is rules-based, which allows for an unbiased view of the marketplace and easy replicability.

The Lehman Brother Corporate Bond Index is the Corporate component of the U.S. Credit Index.

The Lehman Brother TIPS Index consists of Inflation–Protection securities issued by the U.S. Treasury.

The NAREIT Equity REIT Index is designed to provide the most comprehensive assessment of overall industry performance, and includes all tax-qualified real estate investment

trusts (REITs) that are listed on the NYSE, the American Stock Exchange or the NASDAQ National Market List.

The CSFB Equity Market Neutral Index takes both long and short positions in stocks with the aim of minimizing exposure to the systematic risk of the market (i.e., a beta of zero).

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

Page 20: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

20

Index Definitions

All indexes are unmanaged and an individual can not invest directly in an index. Index returns do not include fees or expenses.

The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. This index includes a representative sample of 500 leading companies in leading

industries of the U.S. economy. Although the S&P 500 Index focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal

proxy for the total market.

The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index

The MSCI EAFE Index (Europe, Australia, Far East) is a widely recognized benchmark in the United States to measure international equity performance. It comprises 21 MSCI

country indexes, representing the developed markets outside of North America.

The MSCI Emerging Markets Indexsm is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

The Index consists of the following 25 emerging market country indices: Argentina, Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan,

Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

The MSCI Europe Indexsm is a free float-adjusted market capitalization index designed to measure developed market equity performance in Europe. The Index consists of the

following developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden,

Switzerland, and the United Kingdom.

The MSCI Pacific Indexsm is a free float-adjusted market capitalization index designed to measure equity market performance in the Pacific region. The Index consists of the

following developed market countries: Australia, Hong Kong, Japan, New Zealand and Singapore.

The Lehman Brothers U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The Index covers the U.S. investment grade fixed

rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are

subdivided into more specific indexes that are calculated and reported on a regular basis.

The U.S. Treasury Index is a component of the U.S. Government Index.

The Lehman Brothers High Yield Index covers the universe of fixed rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries

designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issues in non-EMG countries are

included. Original issue zeroes, step-up coupon structures, and 144-As are also included.

The Lehman Brothers Emerging Markets Index includes USD-denominated debt from emerging markets in the following regions: Americas, Europe, Middle East, Africa, and Asia.

As with other fixed income benchmarks provided by Lehman Brothers, the index is rules-based, which allows for an unbiased view of the marketplace and easy replicability.

The Lehman Brother Corporate Bond Index is the Corporate component of the U.S. Credit Index.

The Lehman Brother TIPS Index consists of Inflation–Protection securities issued by the U.S. Treasury.

The NAREIT Equity REIT Index is designed to provide the most comprehensive assessment of overall industry performance, and includes all tax-qualified real estate investment

trusts (REITs) that are listed on the NYSE, the American Stock Exchange or the NASDAQ National Market List.

The CSFB Equity Market Neutral Index takes both long and short positions in stocks with the aim of minimizing exposure to the systematic risk of the market (i.e., a beta of zero).

1st Quarter 2009 Market Overview

This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

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22

Fund Performance Summary

Funds listed in Green are scheduled to be added. Funds listed in Blue are frozen to new contributions

Funds listed in Red are scheduled to be removed. Funds shaded in Yellow have been placed on the watch list.

Fund Name Asset Class 3 Month YTD 1 Year 3 Year 5 Year 10 Year

Vanguard PRIME Money Market Instl Money Market 12.37% 0.15 0.52 1.80 3.81 3.56 3.47 N/A 0.08 N/A

Federated Government Cash Reserves 0.66% 0.00 0.01 0.55 2.80 2.81 2.90 N/A 0.21 N/A

3 Month T-Bill 0.05 0.10 0.62 2.97 3.12 3.14

Cat: Money Market 0.04 0.14 0.90 3.04 2.85 2.83

Guaranteed Pooled Fund Fixed 8.22% 0.96 1.94 3.97 4.01 3.81 4.31 N/A 0.60 N/A

Cat: Stable Value 0.65 1.37 3.27 4.00 3.99 4.58

Vanguard Inflation Protected Securities Inflation Protected 0.00% 0.25 5.51 -2.52 5.32 4.62 N/A 1.59 0.20 Outperform

Barclays U.S. TIPS 0.66 6.21 -1.11 5.78 4.94 7.24

Cat: Inflation Protected Bond 1.19 5.25 -3.14 4.12 4.22 5.87

Vanguard Intermediate Term Treasury Intermediate Government 5.40% -3.20 -3.05 7.05 8.15 5.72 6.53 1.23 0.25 Perform

Barclays Intermediate Govt. Bond -1.44 -1.52 6.42 7.00 5.00 5.63

Cat: Intermediate Government Bond 0.16 1.65 5.66 5.70 4.23 5.00

PIMCO Total Return Admin Intermediate Bond 6.04% 4.67 6.16 8.99 8.14 6.10 6.74 1.76 0.70 Outperform

Vanguard Total Bond Market Index 0.00% 1.75 2.11 6.13 6.48 4.97 5.74 1.00 0.20 N/A

Barclays Aggregate Bond 1.78 1.90 6.05 6.43 5.01 5.98

Cat: Intermediate Term Bond 5.72 5.89 1.64 3.62 3.19 4.82

MainStay High Yield Bond I High Yield Bond 1.58% 17.26 22.97 -4.65 1.10 3.86 5.22 0.83 0.87 Outperform

ML US High Yield Master 22.55 28.99 -3.63 1.77 4.06 4.72

Cat: High Yield Bond 18.13 22.60 -7.76 -0.41 2.37 2.91

Eaton Vance Large Cap Value A Large Cap Value 8.61% 12.16 -3.67 -32.02 -7.99 0.56 2.11 0.99 1.00 Outperform

Russell 1000 Value 16.70 -2.87 -29.03 -11.11 -2.13 -0.15

Cat: Large Value 16.69 1.73 -26.60 -9.92 -2.16 -0.02

Davis NY Venture Y Large Cap Blend 2.29% 21.12 6.54 -27.45 -9.01 -1.42 0.71 1.11 0.59 Perform

TIAA-CREF Instl Growth and Income Instl 0.58% 14.03 5.05 -23.62 -2.51 1.57 N/A 0.95 0.33 Outperform

Fidelity Spartan U.S. Equity Index 9.98% 15.95 3.23 -26.19 -8.25 -2.29 -2.32 1.00 0.10 N/A

S&P 500 15.93 3.16 -26.21 -8.22 -2.24 -2.22

Cat: Large Blend 16.79 4.92 -26.41 -8.34 -2.06 -1.50

Fidelity Contrafund Large Cap Growth 4.68% 12.95 5.67 -27.70 -5.15 2.24 2.27 0.83 0.94 Perform

Vanguard PRIMECAP Adm 2.53% 14.13 7.93 -24.56 -4.17 1.51 2.84 0.94 0.43 Outperform

Russell 1000 Growth 16.32 11.53 -24.50 -5.45 -1.83 -4.18

Cat: Large Growth 15.74 10.50 -27.13 -6.86 -1.81 -2.42

Perkins Mid Cap Value Inv Mid Cap Value 1.12% 16.78 7.92 -18.49 -2.27 3.17 9.23 0.77 1.06 Outperform

TIAA-CREF Instl Mid Cap Value Instl 0.25% 20.46 9.49 -28.45 -7.94 1.73 N/A 0.95 0.51 Outperform

Russell Mid Cap Value 20.94 3.19 -30.52 -11.07 -0.43 4.00

Cat: Mid Cap Value 19.41 6.19 -26.25 -9.28 -1.04 4.37

Vanguard Mid Cap Index Mid Cap Blend 1.35% 18.35 8.31 -31.58 -10.09 -0.33 4.19 0.98 0.22 N/A

MSCI US Mid Cap 450 Index/S&P 400 Mid Cap Idx* 18.31 8.36 -31.57 -10.01 -0.24 4.49

Cat: Mid Cap Blend 20.06 10.05 -28.13 -9.00 -1.35 2.90

Annualized Return Expense

Ratio

RETURNS AS OF 06/30/09

3 Year

Beta

(%) of

Plan

Evaluation

Methodology

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23

Fund Performance Summary (continued)

Fund Name Asset Class 3 Month YTD 1 Year 3 Year 5 Year 10 Year

Munder Mid-Cap Core Growth A Mid Cap Growth 1.50% 15.89 7.84 -32.43 -8.26 0.25 6.80 0.92 1.31 Perform

Russell Mid Cap Growth 20.67 16.61 -30.33 -7.93 -0.44 0.02

Cat: Mid Cap Growth 17.50 12.34 -30.56 -8.12 -1.08 0.97

Allianz NFJ Small Cap Value Inst Small Value 0.63% 17.31 1.16 -23.64 -4.62 3.50 8.52 0.81 0.82 Outperform

Lord Abbett Small Cap Value A 0.36% 18.80 4.43 -23.85 -5.74 3.81 9.27 0.88 1.23 Outperform

Russell 2000 Value Index 18.00 -5.17 -25.24 -12.07 -2.27 5.00

Cat: Small Cap Value 22.68 3.70 -23.55 -10.51 -1.61 5.41

Vanguard Small Cap Index Small Blend 1.81% 24.09 7.35 -25.22 -9.10 -0.81 3.01 1.00 0.23 N/A

MSCI US Small Cap 1750 Index/Russell 2000 Idx* 24.10 7.32 -25.37 -9.13 -0.80 3.03

Cat: Small Cap Blend 22.27 6.11 -25.97 -10.78 -1.78 4.25

Royce Value Plus Instl Small Growth 1.75% 24.26 16.31 -25.51 -7.85 1.65 N/A 0.99 1.04 Outperform

Russell 2000 Growth 23.38 11.36 -24.85 -7.83 -1.32 -0.89

Cat: Small Cap Growth 21.00 10.72 -26.87 -9.48 -2.27 1.43

American Funds New Perspective R4 Global 0.71% 18.47 9.99 -24.82 -3.64 3.23 3.83 0.89 0.75 Outperform

Mutual Discovery Z 0.72% 9.71 7.76 -12.19 0.14 7.59 8.48 0.50 1.02 Outperform

MSCI WORLD 20.75 6.35 -29.50 -8.02 0.03 -0.85

Cat: World Stock 21.30 10.10 -28.39 -7.20 0.76 1.31

American Funds EuroPacific Growth R4 Foreign Large Equity 2.28% 22.26 12.59 -25.55 -3.17 6.02 4.71 0.92 0.82 Outperform

Fidelity Spartan International Index 1.74% 25.40 5.42 -30.84 -7.76 2.27 1.10 1.03 0.10 N/A

MSCI EAFE ND 25.43 7.95 -31.35 -7.98 2.31 1.16

Cat: Foreign Large Equity 24.28 8.55 -32.01 -7.96 2.10 1.47

BlackRock International Opportunities A Foreign Small / Mid Equity 1.10% 28.03 13.74 -31.46 -3.20 9.85 13.86 1.10 1.58 Outperform

MSCI EAFE ND 25.43 7.95 -31.35 -7.98 2.31 1.16

Cat: Foreign Small / Mid Equity 30.36 17.58 -31.87 -8.91 3.36 4.89

DFA Emerging Markets Value I Emerging Markets 2.49% 44.78 41.37 -25.04 6.20 18.60 12.36 1.10 0.60 Outperform

MSCI EM ND 1.02 1.02 -46.90 -7.88 6.25 8.14

Cat: Diversified Emerging Markets 34.73 36.01 -28.07 2.95 14.72 8.70

AIM Real Estate Instl Specialty - Real Estate 0.80% 25.68 -9.23 -40.16 -16.20 -0.23 7.42 0.86 0.83 Outperform

Dow Jones Wilshire REIT Index U.S. 31.46 -13.13 -45.35 -19.73 -3.28 5.53

Cat: Specialty - Real Estate 29.88 -8.63 -43.13 -19.10 -3.70 4.89

* Secondary index is represented through May 16, 2003.

Annualized Return Expense

Ratio

Evaluation

Methodology

RETURNS AS OF 06/30/09

3 Year

Beta

(%) of

Plan

- 3 Yr Beta is run against the Morningstar Best Fit Index

Page 24: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

24

Fund Performance Summary (continued)

Fund Name Asset Class(%) of

Plan3 Month YTD 1 Year 3 Year 5 Year 10 Year

Portfolio Xpress (-30 Years) Lifecycle Funds/Models 6.55 4.55 -4.37 3.12 4.58 N/A 0.58

T. Rowe Price Retirement Income 1.78% 11.53 8.11 -8.18 0.28 2.67 N/A 0.55

Cat: Retirement Income 10.31 6.27 -9.62 -1.01 1.28 2.29 1.16

Portfolio Xpress (0 Years) 9.90 5.24 -11.63 0.38 3.85 N/A 0.62

T. Rowe Price Retirement 2005 1.84% 13.03 8.45 -10.99 -0.63 2.59 N/A 0.58

Cat: Target Date 2000-2010 11.72 6.68 -13.09 -2.08 0.83 2.13 1.18

Portfolio Xpress (0 Years) 9.90 5.24 -11.63 0.38 3.85 N/A 0.62

T. Rowe Price Retirement 2010 2.92% 14.87 9.55 -14.22 -1.99 2.07 N/A 0.61

Cat: Target Date 2000-2010 11.72 6.68 -13.09 -2.08 0.83 2.13 1.18

Portfolio Xpress (5 Years) 11.08 5.55 -14.14 -0.50 3.72 N/A 0.66

T. Rowe Price Retirement 2015 4.49% 16.50 10.60 -16.91 -3.03 1.64 N/A 0.65

Cat: Target Date 2011-2015 13.10 6.18 -18.24 -3.90 0.21 0.71 1.21

Portfolio Xpress (10 Years) 12.24 5.65 -16.34 -1.45 3.40 N/A 0.66

T. Rowe Price Retirement 2020 2.05% 18.02 11.43 -19.38 -4.15 1.17 N/A 0.68

Cat: Target Date 2016-2020 13.85 6.52 -18.84 -4.22 0.40 0.55 1.26

Portfolio Xpress (15 Years) 13.33 5.82 -18.86 -2.52 3.08 N/A 0.67

T. Rowe Price Retirement 2025 1.49% 19.33 11.96 -21.37 -5.03 0.80 N/A 0.70

Cat: Target Date 2021-2025 16.53 7.00 -23.05 -5.94 -0.30 NA 1.18

Portfolio Xpress (20 Years) 14.80 6.20 -21.28 -3.59 2.76 N/A 0.69

T. Rowe Price Retirement 2030 1.24% 20.10 12.46 -22.96 -5.72 0.60 N/A 0.72

Cat: Target Date 2026-2030 16.98 7.19 -24.18 -6.52 -0.66 -0.06 1.27

Portfolio Xpress (25 Years) 15.82 6.26 -23.52 -4.56 2.43 N/A 0.69

T. Rowe Price Retirement 2035 1.31% 20.60 12.71 -23.90 -6.21 0.28 N/A 0.73

Cat: Target Date 2031-2035 18.04 6.89 -25.30 -6.95 -0.78 NA 1.19

Portfolio Xpress (30+ Years) 16.28 6.17 -24.97 -5.15 2.29 N/A 0.72

T. Rowe Price Retirement 2040 0.52% 20.58 12.64 -23.91 -6.21 0.29 N/A 0.73

Cat: Target Date 2036-2040 18.64 7.48 -26.01 -7.40 -0.91 -0.89 1.28

Portfolio Xpress (30+ Years) 16.28 6.17 -24.97 -5.15 2.29 N/A 0.72

T. Rowe Price Retirement 2045 0.44% 20.58 12.74 -23.86 -6.17 N/A N/A 0.73

Cat: Target Date 2041-2045 18.77 7.10 -26.44 -7.41 -0.52 NA 1.22

Portfolio Xpress (30+ Years) 16.28 6.17 -24.97 -5.15 2.29 N/A 0.72

T. Rowe Price Retirement 2050 0.04% 20.55 12.58 -23.92 N/A N/A N/A 0.73

Cat: Target Date 2050+ 19.10 7.77 -26.53 -7.56 -0.52 NA 1.27

Portfolio Xpress (30+ Years) 16.28 6.17 -24.97 -5.15 2.29 N/A 0.72

T. Rowe Price Retirement 2055 0.29% 20.63 12.56 -24.04 N/A N/A N/A 0.73

Cat: Target Date 2050+ 16.62 -2.49 -26.94 -10.39 -1.80 -0.93 1.27

RETURNS AS OF 06/30/09

Annualized Return Expense

Ratio

Page 25: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

25

T. Rowe Price Retirement Funds - Qualitative Analysis

T. Rowe Price Retirement Funds

Provide Asset Allocation/Target Date

Services Since2002

Method of Investment Fund of Funds

Investment Strategy Active

# of Underlying Funds 17

# of Underlying Funds closed to new

investments0

# of Funds Avaliable 12

Holdings Subadvised or Cloned NO

Glide Path Static

Tactical Strategies Yes

Rebalance Trigger 5%

Glide Path Extension 30 years

Net Assets $23 billion

Alternative Asset Classes Emerging Markets/ World Bond / Emerging Markets Bond

T. Rowe Price Retirement Funds Asset Allocation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2055

2050

2045

2040

2035

2030

2025

2020

2015

2010

2005

Inco

me

International Equity Domestic Equity Fixed Income

Page 26: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

26

Portfolio XPress Allocation (Underlying Holdings)

Foreign Equity

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40 35 30 25 20 15 10 5 0 Income

Years Until Retirement

Portfolio Xpress T. Row e Price Wells Fargo MSTAR Category

Domestic Equity

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40 35 30 25 20 15 10 5 0 Income

Years Until Retirement

Portfolio Xpress T. Row e Price Wells Fargo MSTAR Category

Fixed Income

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40 35 30 25 20 15 10 5 0 Income

Years Until Retirement

Portfolio Xpress T. Row e Price Wells Fargo MSTAR Category

Domestic Equity

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40 35 30 25 20 15 10 5 0 Income

Years Until Retirement

Portfolio Xpress

T. Row e Price

Wells Fargo (Conservative Target Date)

MSTAR Category

Page 27: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

27

Quantitative Analysis Summary

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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Fund Name Fund Category

Fund

Wgt* 2Q09 1Q09 4Q08 3Q08

3 Year

Average

Fund Score

Vanguard Inflation Protected Securities Inflation Protected 0.00% 21.87 20.00 22.00 14.96 18.30

Barclays U.S. TIPS

Vanguard Intermediate Term Treasury Intermediate Govt 5.40% 28.24 23.68 21.46 23.17 21.46

Barclays Int Govt Bond

PIMCO Total Return Admin Intermediate Bond 6.04% 13.01 11.90 12.41 16.24 12.41

Barclays Aggregate Bond

MainStay High Yield Bond I High Yield Bond 1.58% 21.31 21.94 22.13 17.73 22.13

ML US High Yield Master

Eaton Vance Large Cap Value A Large Value 8.61% 22.38 20.10 18.59 16.33 18.59

Russell 1000 Value

Davis NY Venture Y Large Blend 2.29% 26.04 30.11 31.09 23.07 31.09

TIAA-CREF Growth and Income Instl 0.58% 23.30 23.70 24.74 24.90 24.74

S&P 500 Index

Fidelity Contrafund Large Growth 4.68% 25.57 22.89 24.07 23.27 24.07

Vanguard PRIMECAP Adm 2.53% 18.85 17.35 16.69 15.01 16.69

Russell 1000 Growth

Perkins Mid Cap Value Inv Mid Cap Value 1.12% 16.40 15.75 16.18 15.23 16.18

TIAA-CREF Mid Cap Value Instl 0.25% 21.30 21.32 23.97 19.17 23.97

Russell Mid Cap Value

Munder Mid-Cap Core Growth A Mid Cap Growth 1.50% 31.86 28.89 26.63 28.13 26.63

Russell Mid Cap Growth

Allianz NFJ Small Cap Value Instl Small Cap Value 0.63% 20.84 19.43 19.80 19.54 19.80

Lord Abbett Small Cap Value A 0.36% 20.93 19.27 20.25 17.58 20.25

Russell 2000 Value

Royce Value Plus Instl Small Cap Growth 1.75% 17.44 19.24 19.31 14.63 19.31

Russell 2000 Growth

American Funds New Perspective R4 World Stock 0.71% 23.78 22.48 25.23 23.41 25.23

Mutual Discovery Z 0.72% 18.35 17.91 17.51 17.53 17.51

MSCI World

American Funds EuroPacific Growth R4 Foreign Large Equity 2.28% 16.44 15.70 17.89 16.84 17.89

MSCI EAFE

BlackRock International Opportunities A Foreign Sm/Mid Equity 1.10% 13.86 15.63 15.50 16.30 15.50

MSCI EAFE

DFA Emerging Markets Value I Emerging Markets 2.49% 10.96 11.29 11.54 9.79 11.54

MSCI EAFE

AIM Real Estate Instl Specialty-Real Estate 0.80% 18.27 13.97 15.34 14.61 15.34

DJ Wilshire REIT Index

PLAN WEIGHTED SCORE: 20.81 19.93 19.23

*Fund w eightings are remeasured by assigning a proportionate w eighting to each fund included in the Evaluation Methodology Score.

EVALUATION METHODOLOGY SCORE

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28

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

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Vanguard Inflation Prot Securities

Ranking vs. Peers - Inflation Protected Bond

Inflation Protected Bond Universe = 147 Funds 6/30/2009

Total Return 24.40%

10 Year NA

5 Year 22.00%

3 year 26.00%

Rolling 12-month - 10 years 8.00%

Rolling 36-Month - 10 years 14.00%

Sharpe Ratio 25.60%

10 Year NA

5 Year 16.00%

3 year 32.00%

Information Ratio 31.80%

10 Year NA

5 Year 27.00%

3 year 35.00%

Up Capture Ratio - 10 years 18.00%

Down Capture Ratio - 10 years 35.00%

Style Consistency to Benchmark - Lehman US TIPS Index 20.00%

R2 20.00%

Avg Credit Quality 20.00%

Expense Ratio 0.20 20.00%

Total Average Ranking 21.87%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 29: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

29

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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Vanguard Intermediate US Treasury

Ranking vs. Peers - Intermediate Govt Bond

Intermediate Govt Bond Universe = 419 Funds 6/30/2009

Total Return 1.80%

10 Year 1.00%

5 Year 2.00%

3 year 2.00%

Rolling 12-month - 10 years 5.00%

Rolling 36-Month - 10 years 6.00%

Sharpe Ratio 36.00%

10 Year 25.00%

5 Year 30.00%

3 year 44.00%

Information Ratio 67.40%

10 Year 63.00%

5 Year 66.00%

3 year 70.00%

Up Capture Ratio - 10 years 1.00%

Down Capture Ratio - 10 years 97.00%

Style Consistency to Benchmark - Lehman US Intermediate Govt Index 20.00%

R2 20.00%

Avg Credit Quality 20.00%

Expense Ratio 0.25 20.00%

Total Average Ranking 28.24%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 30: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

30

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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PIMCO Total Return Admin

Ranking vs. Peers - Intermediate Bond

Intermediate Bond Universe = 1222 Funds 6/30/2009

Total Return 1.20%

10 Year 2.00%

5 Year 1.00%

3 year 1.00%

Rolling 12-month - 10 years 2.00%

Rolling 36-Month - 10 years 2.00%

Sharpe Ratio 3.60%

10 Year 2.00%

5 Year 4.00%

3 year 4.00%

Information Ratio 13.30%

10 Year 6.00%

5 Year 12.00%

3 year 17.00%

Up Capture Ratio - 10 years 7.00%

Down Capture Ratio - 10 years 28.00%

Style Consistency to Benchmark - Lehman US Aggregate Bond Index 40.00%

R2 60.00%

Avg Credit Quality 20.00%

Expense Ratio 0.70 20.00%

Total Average Ranking 13.01%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 31: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

31

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

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MainStay High Yield Bond I

Ranking vs. Peers - High Yield Bond

High Yield Bond Universe = 583 Funds 6/30/2009

Total Return 19.30%

10 Year 6.00%

5 Year 12.00%

3 year 29.00%

Rolling 12-month - 10 years 7.00%

Rolling 36-Month - 10 years 6.00%

Sharpe Ratio 29.20%

10 Year 19.00%

5 Year 23.00%

3 year 37.00%

Information Ratio 27.30%

10 Year 21.00%

5 Year 22.00%

3 year 33.00%

Up Capture Ratio - 10 years 23.00%

Down Capture Ratio - 10 years 30.00%

Style Consistency to Benchmark - Merrill Lynch High Yield US Master 30.00%

R2 40.00%

Avg Credit Quality 20.00%

Expense Ratio 0.87 20.00%

Total Average Ranking 21.31%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 32: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

32

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

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Eaton Vance Large Cap Value A

Ranking vs. Peers - Large Cap Value

Large Cap Value Universe = 1422 Funds 6/30/2009

Total Return 18.70%

10 Year 16.00%

5 Year 10.00%

3 year 25.00%

Rolling 12-month - 10 years 5.00%

Rolling 36-Month - 10 years 7.00%

Sharpe Ratio 30.70%

10 Year 29.00%

5 Year 23.00%

3 year 36.00%

Information Ratio 28.70%

10 Year 24.00%

5 Year 23.00%

3 year 34.00%

Up Capture Ratio - 10 years 38.00%

Down Capture Ratio - 10 years 20.00%

Style Consistency to Benchmark - Russell 1000 Value 33.33%

R2 40.00%

Return Style 40.00%

Holding Style 20.00%

Expense Ratio 1.00 20.00%

Total Average Ranking 22.38%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

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33

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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Davis NY Venture Y

Ranking vs. Peers - Large Cap Blend

Large Cap Blend Universe = 1855 Funds 6/30/2009

Total Return 42.70%

10 Year 15.00%

5 Year 29.00%

3 year 62.00%

Rolling 12-month - 10 years 6.00%

Rolling 36-Month - 10 years 8.00%

Sharpe Ratio 34.70%

10 Year 24.00%

5 Year 33.00%

3 year 40.00%

Information Ratio 38.60%

10 Year 25.00%

5 Year 37.00%

3 year 45.00%

Up Capture Ratio - 10 years 26.00%

Down Capture Ratio - 10 years 25.00%

Style Consistency to Benchmark - S&P 500 33.33%

R2 40.00%

Return Style 40.00%

Holding Style 20.00%

Expense Ratio 0.59 20.00%

Total Average Ranking 26.04%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 34: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

34

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

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TIAA-CREF Growth and Income Instl

Ranking vs. Peers - Large Cap Blend

Large Cap Blend Universe = 1855 Funds 6/30/2009

Total Return 2.80%

10 Year N/A

5 Year 4.00%

3 Year 2.00%

Rolling 12-month - 10 years 28.00%

Rolling 36-Month - 10 years 32.00%

Sharpe Ratio 14.80%

10 Year N/A

5 Year 19.00%

3 Year 12.00%

Information Ratio 15.40%

10 Year N/A

5 Year 19.00%

3 Year 13.00%

Up Capture Ratio - 10 years 35.00%

Down Capture Ratio - 10 years 35.00%

Style Consistency to Benchmark - S&P 500 26.67%

R2 20.00%

Return Style 20.00%

Holding Style 40.00%

Expense Ratio 0.33 20.00%

Total Average Ranking 23.30%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 35: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

35

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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Fidelity Contrafund

Ranking vs. Peers - Large Cap Growth

Large Cap Growth Universe = 2006 Funds 6/30/2009

Total Return 14.70%

10 Year 5.00%

5 Year 4.00%

3 year 25.00%

Rolling 12-month - 10 years 1.00%

Rolling 36-Month - 10 years 0.00%

Sharpe Ratio 32.00%

10 Year 13.00%

5 Year 18.00%

3 year 48.00%

Information Ratio 28.40%

10 Year 7.00%

5 Year 20.00%

3 year 42.00%

Up Capture Ratio - 10 years 93.00%

Down Capture Ratio - 10 years 1.00%

Style Consistency to Benchmark - Russell 1000 Growth 40.00%

R2 40.00%

Return Style 60.00%

Holding Style 20.00%

Expense Ratio 0.94 20.00%

Total Average Ranking 25.57%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

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36

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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Vanguard PRIMECAP

Ranking vs. Peers - Large Cap Growth

Large Cap Growth Universe = 2006 Funds 6/30/2009

Total Return 9.40%

10 Year 3.00%

5 Year 6.00%

3 year 14.00%

Rolling 12-month - 10 years 1.00%

Rolling 36-Month - 10 years 2.00%

Sharpe Ratio 23.20%

10 Year 7.00%

5 Year 21.00%

3 year 31.00%

Information Ratio 22.20%

10 Year 8.00%

5 Year 22.00%

3 year 28.00%

Up Capture Ratio - 10 years 23.00%

Down Capture Ratio - 10 years 17.00%

Style Consistency to Benchmark - Russell 1000 Growth 53.33%

R2 60.00%

Return Style 80.00%

Holding Style 20.00%

Expense Ratio 0.43 20.00%

Total Average Ranking 19.01%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

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37

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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Perkins Mid Cap Value Inv

Ranking vs. Peers - Mid Cap Value

Mid Cap Value Universe = 379 Funds 6/30/2009

Total Return 4.00%

10 Year 4.00%

5 Year 4.00%

3 year 4.00%

Rolling 12-month - 10 years 7.00%

Rolling 36-Month - 10 years 13.00%

Sharpe Ratio 9.30%

10 Year 6.00%

5 Year 12.00%

3 year 9.00%

Information Ratio 9.60%

10 Year 5.00%

5 Year 12.00%

3 year 10.00%

Up Capture Ratio - 10 years 33.00%

Down Capture Ratio - 10 years 5.00%

Style Consistency to Benchmark - Russell Mid Cap Value 46.67%

R2 60.00%

Return Style 20.00%

Holding Style 60.00%

Expense Ratio 1.06 20.00%

Total Average Ranking 16.40%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

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38

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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TIAA-CREF Mid Cap Value Instl

Ranking vs. Peers - Mid Cap Value

Mid Cap Value Universe = 379 Funds 6/30/2009

Total Return 20.00%

10 Year NA

5 Year 11.00%

3 year 26.00%

Rolling 12-month - 10 years 2.00%

Rolling 36-Month - 10 years 3.00%

Sharpe Ratio 24.00%

10 Year NA

5 Year 18.00%

3 year 28.00%

Information Ratio 25.00%

10 Year NA

5 Year 19.00%

3 year 29.00%

Up Capture Ratio - 10 years 19.00%

Down Capture Ratio - 10 years 52.00%

Style Consistency to Benchmark - Russell Mid Cap Value 26.67%

R2 20.00%

Return Style 40.00%

Holding Style 20.00%

Expense Ratio 0.51 20.00%

Total Average Ranking 21.30%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

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39

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

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Munder Mid Cap Core Growth A

Ranking vs. Peers - Mid Cap Growth

Mid Cap Growth Universe = 1002 Funds 6/30/2009

Total Return 39.70%

10 Year 7.00%

5 Year 36.00%

3 year 55.00%

Rolling 12-month - 10 years 2.00%

Rolling 36-Month - 10 years 4.00%

Sharpe Ratio 43.10%

10 Year 7.00%

5 Year 44.00%

3 year 57.00%

Information Ratio 42.90%

10 Year 6.00%

5 Year 44.00%

3 year 57.00%

Up Capture Ratio - 10 years 68.00%

Down Capture Ratio - 10 years 7.00%

Style Consistency to Benchmark - Russell Mid Cap Growth 40.00%

R2 60.00%

Return Style 40.00%

Holding Style 20.00%

Expense Ratio 1.31 40.00%

Total Average Ranking 31.86%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 40: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

40

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Allianz NFJ Small Cap Value Instl

Ranking vs. Peers - Small Cap Value

Small Cap Value Universe = 381 Funds 6/30/2009

Total Return 5.50%

10 Year 7.00%

5 Year 2.00%

3 year 7.00%

Rolling 12-month - 10 years 2.00%

Rolling 36-Month - 10 years 2.00%

Sharpe Ratio 13.70%

10 Year 12.00%

5 Year 11.00%

3 year 16.00%

Information Ratio 11.70%

10 Year 11.00%

5 Year 10.00%

3 year 13.00%

Up Capture Ratio - 10 years 82.00%

Down Capture Ratio - 10 years 4.00%

Style Consistency to Benchmark - Russell 2000 Value 46.67%

R2 60.00%

Return Style 60.00%

Holding Style 20.00%

Expense Ratio 0.82 20.00%

Total Average Ranking 20.84%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 41: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

41

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Lord Abbett Small Cap Value A

Ranking vs. Peers - Small Cap Value

Small Cap Value Universe = 381 Funds 6/30/2009

Total Return 7.00%

10 Year 1.00%

5 Year 1.00%

3 Year 13.00%

Rolling 12-month - 10 years 5.00%

Rolling 36-Month - 10 years 7.00%

Sharpe Ratio 13.10%

10 Year 12.00%

5 Year 9.00%

3 Year 16.00%

Information Ratio 13.60%

10 Year 13.00%

5 Year 10.00%

3 Year 16.00%

Up Capture Ratio - 10 years 15.00%

Down Capture Ratio - 10 years 21.00%

Style Consistency to Benchmark - Russell 2000 Value 66.67%

R2 40.00%

Return Style 80.00%

Holding Style 80.00%

Expense Ratio 1.23 40.00%

Total Average Ranking 20.93%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 42: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

42

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Royce Value Plus Instl

Ranking vs. Peers - Small Cap Growth

Small Cap Growth Universe = 924 Funds 6/30/2009

Total Return 22.60%

10 Year NA

5 Year 7.00%

3 year 33.00%

Rolling 12-month - 10 years 1.00%

Rolling 36-Month - 10 years 1.00%

Sharpe Ratio 24.20%

10 Year NA

5 Year 17.00%

3 year 29.00%

Information Ratio 27.80%

10 Year NA

5 Year 20.00%

3 year 33.00%

Up Capture Ratio - 10 years 13.00%

Down Capture Ratio - 10 years 14.00%

Style Consistency to Benchmark - Russell 2000 Growth 33.33%

R2 40.00%

Return Style 40.00%

Holding Style 20.00%

Expense Ratio 1.04 20.00%

Total Average Ranking 17.44%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 43: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

43

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

American Funds New Perspective R4

Ranking vs. Peers - World Stock

World Stock Universe = 538 Funds 6/30/2009

Total Return 18.80%

10 Year 20.00%

5 Year 21.00%

3 year 17.00%

Rolling 12-month - 10 years 16.00%

Rolling 36-Month - 10 years 22.00%

Sharpe Ratio 24.70%

10 Year 24.00%

5 Year 28.00%

3 year 23.00%

Information Ratio 21.70%

10 Year 19.00%

5 Year 23.00%

3 year 22.00%

Up Capture Ratio - 10 years 39.00%

Down Capture Ratio - 10 years 28.00%

Style Consistency to Benchmark - MSCI The World Index NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 0.75 20.00%

Total Average Ranking 23.78%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 44: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

44

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Mutual Discovery Z

Ranking vs. Peers - World Stock

World Stock Universe = 538 Funds 6/30/2009

Total Return 2.70%

10 Year 2.00%

5 Year 1.00%

3 year 4.00%

Rolling 12-month - 10 years 6.00%

Rolling 36-Month - 10 years 7.00%

Sharpe Ratio 8.80%

10 Year 0.00%

5 Year 6.00%

3 year 14.00%

Information Ratio 6.30%

10 Year 0.00%

5 Year 6.00%

3 year 9.00%

Up Capture Ratio - 10 years 95.00%

Down Capture Ratio - 10 years 1.00%

Style Consistency to Benchmark - MSCI The World Index NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 1.02 20.00%

Total Average Ranking 18.35%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 45: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

45

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

American Funds EuroPacific Growth R4

Ranking vs. Peers - Foreign Large Equity

Foreign Large Equity Universe = 1238 Funds 6/30/2009

Total Return 7.70%

10 Year 13.00%

5 Year 7.00%

3 year 6.00%

Rolling 12-month - 10 years 9.00%

Rolling 36-Month - 10 years 12.00%

Sharpe Ratio 18.20%

10 Year 20.00%

5 Year 19.00%

3 year 17.00%

Information Ratio 16.60%

10 Year 17.00%

5 Year 19.00%

3 year 15.00%

Up Capture Ratio - 10 years 33.00%

Down Capture Ratio - 10 years 15.00%

Style Consistency to Benchmark - MSCI EAFE NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 0.82 20.00%

Total Average Ranking 16.44%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 46: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

46

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

BlackRock Intl Opportunities A

Ranking vs. Peers - Foreign Large Equity

Foreign Large Equity Universe = 1238 Funds 6/30/2009

Total Return 3.30%

10 Year 0.00%

5 Year 1.00%

3 year 6.00%

Rolling 12-month - 10 years 1.00%

Rolling 36-Month - 10 years 1.00%

Sharpe Ratio 11.10%

10 Year 3.00%

5 Year 15.00%

3 year 12.00%

Information Ratio 12.50%

10 Year 5.00%

5 Year 15.00%

3 year 14.00%

Up Capture Ratio - 10 years 0.00%

Down Capture Ratio - 10 years 32.00%

Style Consistency to Benchmark - MSCI EAFE NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 1.58 50.00%

Total Average Ranking 13.86%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 47: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

47

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

DFA Emerging Markets Value I

Ranking vs. Peers - Emerging Markets

Emerging Markets Universe = 274 Funds 6/30/2009

Total Return 1.50%

10 Year 5.00%

5 Year 0.00%

3 year 1.00%

Rolling 12-month - 10 years 1.00%

Rolling 36-Month - 10 years 1.00%

Sharpe Ratio 7.00%

10 Year 14.00%

5 Year 9.00%

3 year 3.00%

Information Ratio 10.20%

10 Year 13.00%

5 Year 12.00%

3 year 8.00%

Up Capture Ratio - 10 years 26.00%

Down Capture Ratio - 10 years 21.00%

Style Consistency to Benchmark - MSCI EMF NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 0.60 20.00%

Total Average Ranking 10.96%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 48: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

48

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

AIM Real Estate Instl

Ranking vs. Peers - Real Estate

Real Estate Universe = 263 Funds 6/30/2009

Total Return 6.40%

10 Year 2.00%

5 Year 5.00%

3 Year 9.00%

Rolling 12-month - 10 years 1.00%

Rolling 36-Month - 10 years 2.00%

Sharpe Ratio 31.60%

10 Year 15.00%

5 Year 17.00%

3 Year 47.00%

Information Ratio 23.40%

10 Year 13.00%

5 Year 16.00%

3 Year 32.00%

Up Capture Ratio - 10 years 50.00%

Down Capture Ratio - 10 years 10.00%

Style Consistency to Benchmark - DJ Wilshire REIT 20.00%

R2 20.00%

Return Style NA

Holding Style NA

Expense Ratio 0.83 20.00%

Total Average Ranking 18.27%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 49: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

49

Overlap Analysis

0 - 30%

31 – 50%

51% and above

Ea

ton V

ance

Larg

e C

ap V

alu

e

Fid

elit

y C

ontr

afu

nd

Alli

anz N

FJ S

ma

ll C

ap V

alu

e

Va

ng

ua

rd S

ma

ll C

ap I

nde

x

Lord

Ab

be

tt S

ma

ll C

ap V

alu

e

Pe

rkin

s M

id C

ap V

alu

e

Da

vis

NY

Ve

ntu

re

Mu

nd

er

Mid

Ca

p C

ore

Gro

wth

Va

ng

ua

rd M

id C

ap I

nde

x

Ro

yce V

alu

e P

lus

Va

ng

ua

rd P

RIM

EC

AP

TIA

A-C

RE

F M

id C

ap V

alu

e

Fid

elit

y S

part

an U

S E

quity I

nde

x

TIA

A-C

RE

F G

row

th &

In

com

e

Eaton Vance Large Cap Value -- 17 0 0 0 11 18 0 0 0 10 3 34 27

Fidelity Contrafund 17 -- 0 2 0 8 16 1 9 1 13 1 27 20

Allianz NFJ Small Cap Value 0 0 -- 9 9 3 0 4 4 2 0 0 0 0

Vanguard Small Cap Index 0 2 9 -- 8 2 0 5 0 5 0 0 0 0

Lord Abbett Small Cap Value 0 0 9 8 -- 3 0 3 3 5 0 3 0 0

Perkins Mid Cap Value 11 8 3 2 3 -- 5 4 10 3 6 3 11 4

Davis NY Venture 18 16 0 0 0 5 -- 1 3 0 12 1 21 13

Munder Mid Cap Core Growth 0 1 4 5 3 4 1 -- 10 4 0 4 2 0

Vanguard Mid Cap Index 0 9 4 0 3 10 3 10 -- 3 3 8 9 2

Royce Value Plus 0 1 2 5 5 3 0 4 3 -- 1 0 0 0

Vanguard PRIMECAP 10 13 0 0 0 6 12 0 3 1 -- 2 20 10

TIAA-CREF Mid Cap Value 3 1 0 0 3 3 1 4 8 0 2 -- 3 4

Fidelity Spartan US Equity Index 34 27 0 0 0 11 21 2 9 0 20 3 -- 37

TIAA-CREF Growth & Income 27 20 0 0 0 4 13 0 2 0 10 4 37 --

Page 50: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

50

Range of InvestmentsLower risk/lower potential reward Higher risk/higher potential reward

BALANCED

CAPITAL

PRESERVATIONINCOME HYBRID VALUE BLEND GROWTH

LARGE VALUE

- Eaton Vance Large Cap

Value

LARGE BLEND

- Davis NY Venture

- TIAA-CREF Instl Grth and

Income

- Fidelity Spartan US Equity

Idx

LARGE GROWTH

- Fidelity Contrafund

- Vanguard PRIMECAP

MID CAP VALUE

- Perkins Mid Cap Value

- TIAA-CREF Instl Mid Cap

Value

MID CAP BLEND

- Vanguard Mid Cap Index

MID CAP GROWTH

- Munder Mid-Cap Core

Growth

SMALL CAP VALUE

- Allianz NFJ Small Cap

Value Inst

- Lord Abbett Small Cap

Value

SMALL CAP BLEND

- Vanguard Small Cap Index

SMALL CAP GROWTH

- Royce Value Plus

SP

EC

IAL

TY

REAL ESTATE

- AIM Real Estate

WORLD STOCK

- American Funds New

Perspective

- Mutual Discovery

FOREIGN LARGE CAP

- American Funds EuroPacific

Growth

- Fidelity Spartan International

Index

FOREIGN SM/MID CAP

- BlackRock International

Opportunities

EMERGING MARKETS

- DFA Emerging Markets

Value

EQUITYFIXED INCOME

DO

ME

ST

ICF

OR

EIG

N

FIXED

- Vanguard PRIME MMkt

- Federated Gov Reserve

- Guaranteed Pooled

INFLATION PROTECTED

- Vanguard Inflation

Protected Sec

INTERMEDIATE

GOVERNMENT

- Vanguard Int Term

Treasury

INTERMEDIATE

CORPORATE

- PIMCO Total Return

- Vanguard Total Bond

Market Index

HIGH YIELD BOND

- MainStay High Yield Bond

Page 51: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

51

Management Style (Returns-based)D

om

es

tic E

qu

ity

Fo

reig

n E

qu

ity

M anager Style

Ju ly 2 0 0 6 - Ju n e 2 0 0 9

USD, single data window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all -

La

rge

-2 -1 0 1 2

V a lue - G rowth

Top Value Top Growth

Mid Value Mid Growth

Sm Value Sm Growth

Russell Style Indices

Eaton Vance Large-Cap Value A

Davis NY Venture Y

TIAA-CREF Growth & Income Instl

Fidelity Spartan U.S. Equity Index Inv

Fidelity Contrafund

Vanguard PRIMECAP Adm

Perkins Mid Cap Value Investor

TIAA-CREF Mid-Cap Value Instl

Vanguard Mid Capitalization Index

Munder Mid-Cap Core Growth A

Allianz NFJ Small Cap Value Instl

Lord Abbett Small-Cap Value A

Vanguard Small Cap Index

Royce Value Plus Instl

M anager Style

July 2006 - June 2009

USD, single data window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

E u ro p e - A si a

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity Indices

American Funds New Perspective R4

Mutual Discovery Z

American Funds EuroPacific Gr R4

Fidelity Spartan International Index Inv

BlackRock International Opp A

DFA Emerging Markets Value I

M anager Style

Ju ly 1 9 9 9 - Ju n e 2 0 0 9

USD, 36-month centered window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all -

La

rge

-2 -1 0 1 2

V a lue - G rowth

Top Value Top Growth

Mid Value Mid Growth

Sm Value Sm Growth

Russell Style Indices

Eaton Vance Large-Cap Value A

Davis NY Venture Y

TIAA-CREF Growth & Income Instl

Fidelity Spartan U.S. Equity Index Inv

Fidelity Contrafund

Vanguard PRIMECAP Adm

Perkins Mid Cap Value Investor

TIAA-CREF Mid-Cap Value Instl

Vanguard Mid Capitalization Index

Munder Mid-Cap Core Growth A

Allianz NFJ Small Cap Value Instl

Lord Abbett Small-Cap Value A

Vanguard Small Cap Index

Royce Value Plus Instl

M anager Style

July 1999 - June 2009

USD, 36-month centered window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

E u ro p e - A si a

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity Indices

American Funds New Perspective R4

Mutual Discovery Z

American Funds EuroPacific Gr R4

Fidelity Spartan International Index Inv

BlackRock International Opp A

DFA Emerging Markets Value I

Page 52: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

52

Portfolio Analysis

Portfolio Composition

Sector Weightings

Non-US Stocks,

13.69%

Cash, 15.99%

US Stocks,

43.59%

Bonds, 25.99%

Other, 0.74%

1st Qtr - 2009 2nd Qtr - 2009 S&P 500 Index

Software 3.38% 3.93% 4.30%

Hardware 7.42% 8.08% 10.50%

Media 2.81% 2.67% 2.70%

Telecommunication 3.95% 3.77% 3.50%

Healthcare 13.98% 12.91% 13.90%

Consumer Services 7.95% 8.44% 8.30%

Business Services 6.49% 6.68% 4.90%

Financial Services 16.75% 16.72% 13.70%

Consumer Goods 9.60% 9.49% 10.00%

Industrial Materials 12.70% 12.82% 11.40%

Energy 11.19% 10.84% 13.20%

Utilities 3.91% 3.69% 3.70%

Page 53: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

53

Portfolio Return vs. Custom Benchmark

Annualized Returns Benchmark Weightings

3 YR 3 YR 3 YR Expense

Performance as of June 30, 2009 3 Month 1 Year 3 Year 5 Year 10 Year Std Dev Mean Sharpe Ratio

Pepperdine Diversified 403(b) Plan 12.09% -14.91% -1.40% 2.69% 3.54% 12.71 -1.40 -0.28 0.56

Custom Benchmark - Index (Passive) 12.18% -15.39% -3.03% 1.21% 1.62% N/A N/A N/A N/A

Custom Benchmark - Category (Active) 12.29% -15.89% -3.10% 1.13% 1.85% 12.87 -3.10 -0.41 0.68*

Annualized Returns

*Custom expense ratio represents the weighted expense (based upon current allocation) of Institutional and Retirement share classes in each asset category.

-4%

-2%

0%

2%

4%

3 Year 5 Year

Pepperdine Diversified 403(b) Plan

Custom Benchmark - Index (Passive)

Custom Benchmark - Category (Active)

Fund Name Category (Active) Index (Passive) Weight

Vanguard Prime Money Market Instl Money Market 3 Month T-Bill 12.37%

Federated Gov. Cash Reserves Money Market 3 Month T-Bill 0.66%

Guaranteed Pooled Fund Stable Value Cat: Stable Value 8.22%

Vanguard Int Term Treasury Intermediate Govt Bond Barclays Int Government Bond 5.40%

PIMCO Total Return Admin Intermediate Bond Barclays Aggregate Bond 6.04%

MainStay HY Bond I High Yield Bond ML US High Yield Master 1.58%

Eaton Vance Large Cap Value A Large Cap Value Russell 1000 Value 8.61%

Davis NY Venture A Large Cap Blend S&P 500 Index 2.29%

TIAA-CREF G&I Instl Large Cap Blend S&P 500 Index 0.58%

Fidelity Spartan US Equity Index Large Cap Blend S&P 500 Index 9.98%

Fidelity Contrafund Large Cap Growth Russell 1000 Growth 4.68%

Vanguard PRIMECAP Large Cap Growth Russell 1000 Growth 2.53%

Perkins Mid Cap Value Inv Mid Cap Value Russell Mid Cap Value 1.12%

TiAA-CREF Mid Cap Value Instl Mid Cap Value Russell Mid Cap Value 0.25%

Vanguard Mid Cap Index Mid Cap Blend MSCI US Prm MC 450 Idx/SP 400MC Idx 1.35%

Munder Mid Cap Core Growth A Mid Cap Growth Russell Mid Cap Growth 1.50%

Allianz NFJ Small Cap Val Instl Small Cap Value Russell 2000 Value 0.63%

Lord Abbett Small Cap Value A Small Cap Value Russell 2000 Value 0.36%

Vanguard Small Cap Index Small Cap Blend MSCI US SC 1750/Russell 2000 Index 1.81%

Royce Value Plus Instl Small Cap Growth Russell 2000 Growth 1.75%

American Funds New Perspective R4 World Stock MSCI World 0.71%

Mutual Discovery Z World Stock MSCI World 0.72%

American Funds EuroPac Grth R4 Foreign Large Equity MSCI EAFE 2.28%

Fidelity Spartan International Idx Foreign Large Equity MSCI EAFE 1.74%

BlackRock International Opp A Foreign Sm/Mid Equity MSCI EAFE 1.10%

DFA Emerging Markets Value I Emerging Markets MSCI Emerging Markets 2.49%

AIM Real Estate Instl Real Estate DJ Wilshire REIT Index 0.80%

T. Rowe Price Retirement Funds Target Dates Cat: Target Dates 18.41%

Page 55: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

55

Asset Allocation by Fund (1 of 2)

Fund # of Balances Percent Dollar Percent Dollar

Vanguard Money Market Instl 279 6.42% 300,281$ 12.37% 11,192,143$

Fidelity Spartan US Equity Index 613 3.01% 140,910$ 9.98% 9,031,993$

Eaton Vance Large Cap Value 487 3.07% 143,782$ 8.61% 7,796,962$

Guaranteed Pooled Fund 284 18.23% 852,669$ 8.22% 7,437,408$

PIMCO Total Return Admin 423 4.83% 226,111$ 6.04% 5,471,586$

Vanguard Intermediate Term Treasury 368 3.93% 183,978$ 5.40% 4,885,850$

Fidelity Contrafund 467 2.27% 106,196$ 4.68% 4,238,672$

T. Rowe Price Retirement 2015 195 6.14% 287,071$ 4.49% 4,067,344$

T. Rowe Price Retirement 2010 106 4.34% 203,215$ 2.92% 2,646,475$

Vanguard PRIMECAP Adm 318 2.30% 107,472$ 2.53% 2,286,364$

DFA Emerging Markets Value I 327 1.47% 68,861$ 2.49% 2,255,374$

Davis New Venture Y 322 1.13% 52,761$ 2.29% 2,074,397$

American Funds EuroPacific R4 364 1.15% 53,785$ 2.28% 2,063,792$

T. Rowe Price Retirement 2020 147 4.70% 219,723$ 2.05% 1,856,593$

T. Rowe Price Retirement 2005 47 1.88% 88,062$ 1.84% 1,664,223$

Vanguard Small Cap Index 322 1.15% 53,868$ 1.81% 1,641,903$

T. Rowe Price Retirement Income 100 0.76% 35,532$ 1.78% 1,614,071$

Royce Value Plus Instl 293 0.58% 27,045$ 1.75% 1,582,124$

Fidelity Spartan International Index 354 1.00% 46,843$ 1.74% 1,575,048$

MainStay High Yield Bond I 265 1.07% 50,238$ 1.58% 1,432,801$

Munder Mid Cap Core Growth A 272 0.72% 33,587$ 1.50% 1,361,246$

T. Rowe Price Retirement 2025 131 4.75% 222,171$ 1.49% 1,344,702$

Vanguard Mid Cap Index 320 1.34% 62,867$ 1.35% 1,224,286$

T. Rowe Price Retirement 2035 144 3.33% 155,579$ 1.31% 1,184,257$

Contributions Assets

Evaluation

Methodology

N/A

N/A

Outperform

N/A

Outperform

Perform

Perform

N/A

N/A

Outperform

Outperform

Perform

Outperform

N/A

N/A

N/A

N/A

Outperform

N/A

Outperform

Perform

N/A

N/A

N/A

Page 56: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

56

Asset Allocation by Fund (2 of 2)

Fund # of Balances Percent Dollar Percent Dollar

T. Rowe Price Retirement 2030 117 6.90% 322,644$ 1.24% 1,124,155$

Perkins Mid Cap Value Inv 280 1.28% 59,973$ 1.12% 1,015,626$

BlackRock International Opportunity A 262 1.06% 49,600$ 1.10% 995,160$

AIM Real Estate Instl 263 0.73% 34,159$ 0.80% 726,041$

Mutual Discovery Z 224 0.99% 46,077$ 0.72% 652,874$

American Funds New Perspective R4 229 0.49% 22,889$ 0.71% 642,360$

Federated Govt Cash 7 0.46% 21,568$ 0.66% 593,704$

Allianz NFJ Small Cap Value Instl 235 0.98% 45,846$ 0.63% 567,212$

TIAA-CREF Growth & Income Instl 211 1.25% 58,288$ 0.58% 529,487$

T. Rowe Price Retirement 2040 116 2.97% 138,941$ 0.52% 472,030$

T. Rowe Price Retirement 2045 123 2.00% 93,617$ 0.44% 399,600$

Lord Abbett Small Cap Value A 218 0.48% 22,645$ 0.36% 329,279$

T. Rowe Price Retirement 2055 4 0.14% 6,592$ 0.29% 265,488$

TIAA-CREF Mid Cap Value Instl 209 0.45% 21,040$ 0.25% 223,234$

T. Rowe Price Retirement 2050 25 0.22% 10,384$ 0.04% 40,018$

Sub Total 1907 100.00% 4,677,347$ 100.00% 90,514,562$

Personal Choice 6 -$ 2,761,284$

Total 1,913 4,677,347$ 93,275,845$

AssetsContributions

Evaluation

Methodology

N/A

Outperform

Outperform

Outperform

Outperform

Outperform

N/A

Outperform

Outperform

N/A

N/A

Outperform

N/A

Outperform

N/A

Page 57: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

57

Asset Allocation by Category (%)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Fixed Bond Large Cap Mid Cap Small Cap International Specialty Target Date

Large Cap Value Large Cap Blend Large Cap Growth Mid Cap Value Mid Cap Blend

Mid Cap Growth Small Cap Value Small Cap Blend Small Cap Growth

Page 58: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

58

Asset Allocation Quarterly Comparison (1 of 2)

Fund Q1-2009 Q2-2009

Vanguard Money Market 12,781,836$ 11,192,143$

Fidelity Spartan US Equity Index 8,222,253$ 9,031,993$

Eaton Vance Large Cap Value 7,134,420$ 7,796,962$

Guaranteed Pooled Fund 6,329,013$ 7,437,408$

PIMCO Total Return Admin 4,639,420$ 5,471,586$

Vanguard Intermediate Term Treasury 6,697,830$ 4,885,850$

Fidelity Contrafund 3,716,456$ 4,238,672$

T. Rowe Price Retirement 2015 4,069,911$ 4,067,344$

T. Rowe Price Retirement 2010 2,230,945$ 2,646,475$

Vanguard PRIMECAP 1,618,754$ 2,286,364$

DFA Emerging Markets Value I 1,177,131$ 2,255,374$

Davis New York Venture Y 1,828,855$ 2,074,397$

American Funds EuroPacific R4 1,670,262$ 2,063,792$

T. Rowe Price Retirement 2020 1,716,763$ 1,856,593$

T. Rowe Price Retirement 2005 1,434,076$ 1,664,223$

Vanguard Small Cap Index 1,212,253$ 1,641,903$

T. Rowe Price Retirement Income 1,531,868$ 1,614,071$

Royce Value Plus Instl 1,188,193$ 1,582,124$

Fidelity Spartan International Index 1,254,889$ 1,575,048$

MainStay High Yield Bond I 670,548$ 1,432,801$

Page 59: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

59

Asset Allocation Quarterly Comparison (2 of 2)Fund Q1-2009 Q2-2009

Munder Mid Cap Core Growth A 1,101,548$ 1,361,246$

T. Rowe Price Retirement 2025 988,932$ 1,344,702$

Vanguard Mid Cap Index 879,948$ 1,224,286$

T. Rowe Price Retirement 2035 948,768$ 1,184,257$

T. Rowe Price Retirement 2030 602,831$ 1,124,155$

Perkins Mid Cap Value Inv 767,694$ 1,015,626$

Black Rock International Opportunity A 517,112$ 995,160$

AIM Real Estate Instl 493,693$ 726,041$

Mutual Discovery Z 469,082$ 652,874$

American Funds New Perspective R4 368,005$ 642,360$

Federated Govt Cash -$ 593,704$

Allianz NFJ Small Cap Value Instl 258,629$ 567,212$

TIAA-CREF Growth & Income Instl 233,079$ 529,487$

T. Rowe Price Retirement 2040 291,217$ 472,030$

T. Rowe Price Retirement 2045 249,282$ 399,600$

Lord Abbett Small Cap Value A 181,006$ 329,279$

T. Rowe Price Retirement 2055 203,710$ 265,488$

TIAA-CREF Mid Cap Value Instl 91,117$ 223,234$

T. Rowe Price Retirement 2050 31,053$ 40,018$

Total Core Line Up 79,802,378$ 90,514,562$

Personal Choice 858,062$ 2,761,284$

Total Plan Assets 80,660,440$ 93,275,845$

Page 60: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

60

Average Account Balance By Age

Average Account Balance

$4,784

$108,280

$48,908

$114,094

$69,578

$35,344

$15,149

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

Age 29 &

Under

Age 30-39 Age 40-49 Age 50-59 Age 60-69 Age 70 &

Over

Total

Page 61: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

61

28.84%

8.34%

8.32%

19.71%

32.59%

2.20%

24.55%

15.50%

24.67%

0.33%15.31%

19.64%

28.22%14.80%

30.13% 16.24%

9.00%1.61%

Asset Allocation By Age

Age 29 & Under Age 30-39 Age 40-49

Age 50-59 Age 60-69

44.77%

11.17%

26.66%

2.34% 6.75%

8.31%

29.01%

17.21%

33.50%

11.19%

7.25%1.85%

28.14%

14.84%

33.47%

1.81% 9.51%

12.24%

Age 70 & Over

Fixed

Bond

Equity

Foreign

Lifecycle

Brokerage

Page 62: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

62

PortfolioXPress Models

Models30+ Years To

Retirement

20 Years To

Retirement

10 Years To

RetirementAt Retirement

10 Years Into

Retirement

Federated US Treasury Cash 0% 0% 0% 1% 1%

Vanguard PRIME Money Market 0% 0% 0% 1% 1%

Guaranteed Pool 0% 0% 3% 6% 9%

PIMCO Total Return Admin 2% 9% 17% 23% 28%

Vanguard Int Term Treasury 1% 4% 8% 11% 13%

MainStay HY Corporate Bond I 2% 4% 5% 6% 8%

Eaton Vance Large Cap Value A 16% 13% 12% 9% 8%

Davis NY Venture Y 4% 4% 3% 3% 2%

Fidelity Spartan US Equity Index 4% 4% 3% 3% 2%

TIAA-CREF Growth & Income Instl 4% 5% 3% 4% 2%

Fidelity Contrafund 8% 6% 5% 4% 3%

Vanguard PRIMECAP 8% 6% 6% 4% 4%

Perkins Md Cap Value Inv 2% 1% 1% 1% 0%

TIAA-CREF Mid Cap Value Instl 2% 2% 2% 1% 1%

Vanguard Mid Cap Index 3% 3% 2% 1% 1%

Munder Mid Cap Core Growth 4% 4% 3% 3% 2%

Allianz NFJ Small Cap Value Instl 3% 3% 2% 2% 1%

Lord Abbett Small Cap Value A 2% 2% 1% 1% 1%

Vanguard Small Cap Index 2% 2% 2% 1% 1%

Royce Value Plus Instl 4% 3% 2% 2% 1%

AIM Real Estate Inst 3% 3% 2% 1% 1%

Amer Funds EuroPac Growth R4 3% 3% 2% 1% 1%

Amer Funds new Perspective R4 3% 3% 2% 1% 1%

Fidelity Spartan Intl Index 4% 3% 3% 2% 2%

Mutual Discovery Z 4% 3% 3% 2% 2%

BlackRock International Opp A 6% 5% 4% 3% 2%

DFA Emerging Markets 6% 5% 4% 3% 2%

Fix

ed

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nd

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ap

Eq

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Page 64: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

64

Fund Performance Summary

Funds listed in Green are scheduled to be added. Funds listed in Blue are frozen to new contributions

Funds listed in Red are scheduled to be removed. Funds shaded in Yellow have been placed on the watch list.

Fund Name Asset Class 3 Month YTD 1 Year 3 Year 5 Year 10 Year

Medley Money Market Money Market 4.65% -0.03 -0.01 0.74 2.89 2.66 2.59 1.00 N/A

3 Month T-Bill 0.05 0.10 0.62 2.97 3.12 3.14

Cat: Money Market 0.04 0.14 0.90 3.04 2.85 2.83

Prudential Guaranteed Interest Stable Value 62.35% 0.94 1.92 3.95 4.01 4.04 4.70 0.49 N/A

Cat: Stable Value 0.65 1.37 3.27 4.00 3.99 4.58

Medley Government Income Intermediate Government 1.47% 0.78 2.47 5.48 4.98 3.67 4.88 1.22 Underperform

Barclays Intermediate Government Bond -1.44 -1.52 6.42 7.00 5.00 5.63

Cat: Intermediate Government Bond 0.16 1.65 5.66 5.70 4.23 5.00

Medley Diversified Bond Intermediate Bond 3.66% 6.83 7.96 2.48 4.34 3.87 4.76 1.20 Perform

Barclays Aggregate Bond 1.78 1.90 6.05 6.43 5.01 5.98

Cat: Intermediate Term Bond 5.72 5.89 1.64 3.62 3.19 4.82

Medley Conservative Balanced Conservative Allocation 1.31% 10.01 3.92 -12.81 -2.46 0.28 0.75 1.33 Underperform

Medley Flexible Managed 0.57% 10.85 2.85 -16.54 -3.90 -0.10 0.05 1.38 Underperform

Cat: Conservative Allocation 10.35 6.84 -9.99 -1.04 1.53 2.25

Medley Stock Index Large Cap Blend 2.92% 15.64 2.70 -26.70 -9.06 -3.18 -3.15 1.13 N/A

S&P 500 Index 15.93 3.16 -26.21 -8.22 -2.24 -2.22

Cat: Large Blend 16.79 4.92 -26.41 -8.34 -2.06 -1.50

Medley Capital Growth Large Cap Growth 8.21% 21.53 21.26 -26.92 -6.83 1.29 -0.08 1.00 Perform

Medley Equity 13.73% 17.30 10.95 -25.61 -6.24 -0.54 -1.27 1.22 Perform

Russell 1000 Growth 16.32 11.53 -24.50 -5.45 -1.83 -4.18

Cat: Large Growth 15.74 10.50 -27.13 -6.86 -1.81 -2.42

Medley Global Global 1.15% 21.39 1.89 -34.19 -10.68 -1.25 -1.76 1.57 Underperform

MSCI WORLD 20.75 6.35 -29.50 -8.02 0.03 -0.85

Cat: World Stock 21.30 10.10 -28.39 -7.20 0.76 1.31

RETURNS AS OF 06/30/2009

(%) of

Plan

Annualized Return Evaluation

Methodology

Expense

Ratio

Page 65: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

65

Quantitative Analysis Summary

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Outp

erf

orm

Pe

rfo

rmU

nd

erp

erf

orm

Fund Name Fund Category

Fund

Wgt* 2Q09 1Q09 4Q08 3Q08

Medley Government Income Intermediate Government 1.47% 57.70 58.46 59.00 54.30

Barclays Intermediate Government

Medley Diversified Bond Intermediate Bond 3.66% 48.61 51.71 52.58 45.56

Barclays Aggregate Bond

Medley Conservative Balanced Conservative Allocation 1.31% 58.63 59.51 58.04 47.64

Medely Flexible Managed 0.57% 61.68 57.96 53.26 43.05

Cat: Conservative Allocation

Medley Capital Growth Large Cap Growth 8.21% 29.94 31.87 36.68 36.12

Medley Equity Account 13.73% 37.14 39.34 38.91 36.02

Russell 1000 Growth

Medley Global Global 1.15% 70.24 72.41 65.29 59.89

MSCI World

PLAN WEIGHTED SCORE: 40.24 42.67 43.76 40.04

*Fund w eightings are remeasured by assigning a proportionate w eighting to each fund included in the Evaluation Methodology Score.

EVALUATION METHODOLOGY SCORE

Page 66: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

66

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Medley Government Income

Ranking vs. Peers - Intermediate Govt Bond

Intermediate Govt Bond Universe = 419 Funds 6/30/2009

Total Return 72.50%

10 Year 61.00%

5 Year 76.00%

3 Year 75.00%

Rolling 12-month - 10 years 60.00%

Rolling 36-Month - 10 years 52.00%

Sharpe Ratio 65.90%

10 Year 60.00%

5 Year 63.00%

3 Year 70.00%

Information Ratio 63.90%

10 Year 63.00%

5 Year 61.00%

3 Year 66.00%

Up Capture Ratio - 10 years 40.00%

Down Capture Ratio - 10 years 65.00%

Style Consistency to Benchmark - Lehman US Intermediate Govt Index 40.00%

R2 60.00%

Avg Credit Quality 20.00%

Expense Ratio 1.22 60.00%

Total Average Ranking 57.70%STATUS UNDERPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 67: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

67

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Medley Diversified Bond

Ranking vs. Peers - Intermediate Bond

Intermediate Bond Universe = 1222 Funds 6/30/2009

Total Return 47.10%

10 Year 54.00%

5 Year 41.00%

3 Year 48.00%

Rolling 12-month - 10 years 39.00%

Rolling 36-Month - 10 years 49.00%

Sharpe Ratio 45.50%

10 Year 50.00%

5 Year 40.00%

3 Year 47.00%

Information Ratio 51.90%

10 Year 49.00%

5 Year 52.00%

3 Year 53.00%

Up Capture Ratio - 10 years 41.00%

Down Capture Ratio - 10 years 64.00%

Style Consistency to Benchmark - Lehman US Aggregate Bond Index 40.00%

R2 60.00%

Avg Credit Quality 20.00%

Expense Ratio 1.20 60.00%

Total Average Ranking 48.61%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 68: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

68

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Medley Conservative Balanced

Ranking vs. Peers - Conservative Allocation

Conservative Allocation Universe = 196 Funds 6/30/2009

Total Return 70.90%

10 Year 80.00%

5 Year 78.00%

3 Year 63.00%

Rolling 12-month - 10 years 51.00%

Rolling 36-Month - 10 years 57.00%

Sharpe Ratio 67.40%

10 Year 65.00%

5 Year 63.00%

3 Year 71.00%

Information Ratio 70.70%

10 Year 72.00%

5 Year 71.00%

3 Year 70.00%

Up Capture Ratio - 10 years 22.00%

Down Capture Ratio - 10 years 80.00%

Style Consistency to Benchmark - NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 1.33 50.00%

Total Average Ranking 58.63%STATUS UNDERPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 69: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

69

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Medley Flexible Managed

Ranking vs. Peers - Conservative Allocation

Conservative Allocation Universe = 196 Funds 6/30/2009

Total Return 88.90%

10 Year 87.00%

5 Year 85.00%

3 Year 92.00%

Rolling 12-month - 10 years 47.00%

Rolling 36-Month - 10 years 43.00%

Sharpe Ratio 69.60%

10 Year 65.00%

5 Year 62.00%

3 Year 76.00%

Information Ratio 83.90%

10 Year 79.00%

5 Year 77.00%

3 Year 90.00%

Up Capture Ratio - 10 years 12.00%

Down Capture Ratio - 10 years 99.00%

Style Consistency to Benchmark - NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 1.38 50.00%

Total Average Ranking 61.68%STATUS UNDERPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 70: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

70

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Medley Capital Growth

Ranking vs. Peers - Large Cap Growth

Large Cap Growth Universe = 2006 Funds 6/30/2009

Total Return 30.90%

10 Year 19.00%

5 Year 7.00%

3 Year 50.00%

Rolling 12-month - 10 years 6.00%

Rolling 36-Month - 10 years 4.00%

Sharpe Ratio 29.30%

10 Year 24.00%

5 Year 20.00%

3 Year 37.00%

Information Ratio 34.30%

10 Year 23.00%

5 Year 24.00%

3 Year 45.00%

Up Capture Ratio - 10 years 74.00%

Down Capture Ratio - 10 years 11.00%

Style Consistency to Benchmark - Russell 1000 Growth 60.00%

R2 80.00%

Return Style 80.00%

Holding Style 20.00%

Expense Ratio 1.00 20.00%

Total Average Ranking 29.94%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 71: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

71

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Medley Equity

Ranking vs. Peers - Large Cap Growth

Large Cap Growth Universe = 2006 Funds 6/30/2009

Total Return 34.20%

10 Year 34.00%

5 Year 23.00%

3 Year 41.00%

Rolling 12-month - 10 years 9.00%

Rolling 36-Month - 10 years 10.00%

Sharpe Ratio 46.90%

10 Year 42.00%

5 Year 40.00%

3 Year 53.00%

Information Ratio 43.80%

10 Year 36.00%

5 Year 37.00%

3 Year 51.00%

Up Capture Ratio - 10 years 89.00%

Down Capture Ratio - 10 years 8.00%

Style Consistency to Benchmark - Russell 1000 Growth 53.33%

R2 60.00%

Return Style 80.00%

Holding Style 20.00%

Expense Ratio 1.22 40.00%

Total Average Ranking 37.14%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 72: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

72

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Medley Global

Ranking vs. Peers - World Stock

World Stock Universe = 538 Funds 6/30/2009

Total Return 79.50%

10 Year 83.00%

5 Year 73.00%

3 Year 82.00%

Rolling 12-month - 10 years 83.00%

Rolling 36-Month - 10 years 81.00%

Sharpe Ratio 82.00%

10 Year 82.00%

5 Year 77.00%

3 Year 85.00%

Information Ratio 80.40%

10 Year 81.00%

5 Year 74.00%

3 Year 84.00%

Up Capture Ratio - 10 years 43.00%

Down Capture Ratio - 10 years 73.00%

Style Consistency to Benchmark - MSCI The World Index NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 1.57 40.00%

Total Average Ranking 70.24%STATUS UNDERPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 73: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

73

Range of Investments

Lower risk/lower potential reward Higher risk/higher potential reward

BALANCED

CAPITAL

PRESERVATIONINCOME HYBRID VALUE BLEND GROWTH

LARGE BLEND

- Medley Stock Index

LARGE GROWTH

- Medley Capital Growth

- Medley Equity

FO

RE

IGN WORLD STOCK

- Medley Global

EQUITYFIXED INCOME

DO

ME

ST

IC

MONEY MARKET

- Medley Money Market

STABLE VALUE

- Prudential GIA

INTERMEDIATE

GOVERNMENT

- Medley Govt Income

INTERMEDIATE BOND

- Medley Diversified Bond

CONSERVATIVE

ALLOCATION

- Medley Conservative

Balanced

- Medley Flexible

Managed

Page 74: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

74

Management Style (Returns-based)D

om

es

tic E

qu

ity

Fo

reig

n E

qu

ity

M anager Style

July 1999 - June 2009

USD, 36-month centered window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

V a l u e - G ro w th

Top Value Top Growth

Mid Value Mid Growth

Sm Value Sm Growth

Russell Style Indices

Medley Stock Index

Medley Captial Growth

Medley Equity Account

M anager Style

July 1999 - June 2009

USD, 36-month centered window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

E u ro p e - A si a

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity Indices

Medley Global Account

M anager Style

July 2006 - June 2009

USD, single data window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

V a l u e - G ro w th

Top Value Top Growth

Mid Value Mid Growth

Sm Value Sm Growth

Russell Style Indices

Medley Stock Index

Medley Captial Growth

Medley Equity Account

M anager Style

July 2006 - June 2009

USD, single data window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

E u ro p e - A si a

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity Indices

Medley Global Account

Page 75: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

75

Portfolio Return vs. Custom Benchmark

Annualized Returns Benchmark Weightings

3 YR 3 YR 3 YR Expense

Performance as of March 31, 2009 3 Month 1 Year 3 Year 5 Year 10 Year Std Dev Mean Sharpe Ratio

Pepperdine Prudential 403(b) Plan 5.75% -4.61% 1.31% 3.04% 3.28% 5.55 1.31 -0.27 0.74

Custom Benchmark - Index (Passive) 4.93% 1.42% 2.35% 1.03% 0.00% N/A N/A N/A N/A

Custom Benchmark - Category (Active) 4.91% -5.22% 1.19% 2.48% 2.72% 5.38 1.19 -0.30 0.65*

Annualized Returns

*Custom expense ratio represents the weighted expense (based upon current allocation) o f Institutional and Retirement share classes in each asset category.

0%

1%

1%

2%

2%

3%

3%

4%

3 Year 5 Year

Pepperdine Prudential 403(b) Plan

Custom Benchmark - Index (Passive)

Custom Benchmark - Category (Active)

Fund Name Category (Active) Index (Passive) Weight

Medley Money Market Money Market 3 Month T-Bill 4.65%

Prudential GIA Stable Value Cat: Stable Value 62.35%

Medley Government Income Intermediate Government Barclays Int Govt 1.47%

Medley Diversified Bond Intermediate Bond Barclays Aggregate 3.66%

Medley Conservative Balanced Conservative Allocation Cat: Conservative Alloc 1.31%

Medley Flexible Managed Conservative Allocation Cat: Conservative Alloc 0.57%

Medley Stock Index Large Cap Blend S&P 500 Index 2.92%

Medley Capital Growth Large Cap Growth Russell 1000 Growth 8.21%

Medley Equity Account Large Cap Growth Russell 1000 Growth 13.73%

Medley Global World Stock MSCI World 1.15%

Page 77: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

77

Asset Allocation by Fund

Fund % of Assets Assets ($)Evaluation

Methodology

Prudential Guaranteed Interest 62.35% 2,257,093$ N/A

Medley Equity 13.73% 496,886$ Perform

Medley Capital Growth 8.21% 297,094$ Perform

Medley Money Market 4.65% 168,289$ N/A

Medley Diversified Bond 3.66% 132,563$ Perform

Medley Stock Index 2.92% 105,575$ N/A

Medley Government Income 1.47% 53,077$ Underperform

Medley Conservative Balanced 1.31% 47,363$ Underperform

Medley Global 1.15% 41,513$ Underperform

Medley Flexible Managed 0.57% 20,556$ Underperform

Total 100.00% 3,620,009$

Page 78: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

78

Asset Allocation by Category (%)

67.00%

5.13%1.88%

21.94%

2.92%1.15%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Fixed Bond Conservative Large Cap International

Large Cap Blend Large Cap Growth

Page 79: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

79

Asset Allocation Quarterly Comparison ($)

Fund Q3-2008 Q4-2008 Q1-2009 Q2-2009

Prudential Guaranteed Interest 2,617,143$ 2,612,484$ 2,305,499$ 2,257,093$

Medley Equity 592,981$ 450,757$ 423,589$ 496,886$

Medley Capital Growth 415,168$ 312,751$ 251,576$ 297,094$

Medley Money Market 238,029$ 246,522$ 176,798$ 168,289$

Medley Diversified Bond 182,963$ 127,377$ 124,084$ 132,563$

Medley Stock Index 138,412$ 108,505$ 91,294$ 105,575$

Medley Government Income 50,117$ 51,504$ 52,663$ 53,077$

Medley Conservative Balanced 86,242$ 78,552$ 51,725$ 47,363$

Medley Global 75,027$ 44,871$ 34,196$ 41,513$

Medley Flexible Managed 47,218$ 43,305$ 18,545$ 20,556$

4,443,301$ 4,076,628$ 3,529,970$ 3,620,009$

Page 80: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

80

Asset Allocation Quarterly Comparison (%)

58.9

0%

13.3

5%

9.3

4%

5.3

6%

4.1

2%

3.1

2%

1.1

3%

1.9

4%

1.6

9%

1.0

6%

64.0

8%

11.0

6%

7.6

7%

6.0

5%

3.1

2%

2.6

6%

1.2

6%

1.9

3%

1.1

0%

1.0

6%

65.3

1%

12.0

0%

7.1

3%

5.0

1%

3.5

2%

2.5

9%

1.4

9%

1.4

7%

0.9

7%

0.5

3%

62.3

5%

13.7

3%

8.2

1%

4.6

5%

3.6

6%

2.9

2%

1.4

7%

1.3

1%

1.1

5%

0.5

7%

0%

10%

20%

30%

40%

50%

60%

70%P

rudential G

uara

nte

ed

Inte

rest

Medle

y E

quity

Medle

y C

apital G

row

th

Medle

y M

oney M

ark

et

Medle

y D

ivers

ifie

d B

ond

Medle

y S

tock I

ndex

Medle

y G

overn

ment

Incom

e

Medle

y C

onserv

ative

Bala

nced

Medle

y G

lobal

Medle

y F

lexib

le M

anaged

Q3-2008

Q4-2008

Q1-2009

Q2-2009

Page 81: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

81

Growth of Plan Assets

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Plan Assets $4,810,807 $4,901,610 $4,443,301 $4,076,628 $3,529,970 $3,620,009

Mar-08 June-08 Sept-08 Dec-08 Mar-09 June-09

Page 83: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

83

Fund Performance Summary

Funds listed in Green are scheduled to be added. Funds listed in Blue are frozen to new contributions

Funds listed in Red are scheduled to be removed. Funds shaded in Yellow have been placed on the watch list.

Fund Name Asset Class 3 Month YTD 1 Year 3 Year 5 Year 10 Year

CREF Money Market Money Market 8.46% 0.00 0.10 1.19 3.32 3.14 3.12 0.47 N/A

3 Month T-Bill 0.05 0.10 0.62 2.97 3.12 3.14

Cat: Money Market 0.04 0.14 0.90 3.04 2.85 2.83

TIAA Traditional (GRA, RA) Stable Value 46.83% 0.98 2.21 5.65 5.30 4.92 6.25 0.50 N/A

TIAA Traditional (GSRA, SRA) 7.43% 0.74 1.48 4.90 4.55 3.82 5.68 0.50 N/A

Cat: Stable Value 0.65 1.37 3.27 4.00 3.99 4.58

CREF Inflation Linked Bond Inflation Protected Bond 2.44% 0.43 4.61 -1.87 5.21 4.45 6.78 0.50 Perform

Barclays U.S. TIPS 0.66 6.21 -1.11 5.78 4.94 7.24

Cat: Inflation Protected Bond 1.19 5.25 -3.14 4.12 4.22 5.87

CREF Bond Market Intermediate Bond 2.74% 1.94 2.42 3.33 4.88 4.03 5.45 0.50 Perform

Barclays Aggregate Bond 1.78 1.90 6.05 6.43 5.01 5.98

Cat: Intermediate Term Bond 5.72 5.89 1.64 3.62 3.19 4.82

CREF Social Choice Hybrid 2.58% 12.36 5.21 -14.41 -2.78 0.71 1.42 0.53 Perform

40% Barclays Agg Bond / 60% S&P 500 Index 10.18 3.06 -13.90 -2.20 0.90 1.33

Cat: Moderate Allocation 13.18 6.50 -17.77 -4.15 0.19 1.27

CREF Stock Large Cap Blend 21.81% 19.56 6.90 -27.64 -7.87 -0.84 -1.04 0.59 Perform

S&P 500 Index 15.93 3.16 -26.21 -8.22 -2.24 -2.22

Cat: Large Blend 16.79 4.92 -26.41 -8.34 -2.06 -1.50

CREF Equity Index 1.81% 16.69 4.00 -26.74 -8.69 -2.22 -1.78 0.49 N/A

Russell 3000 Index 16.82 4.20 -26.56 -8.35 -1.84 -1.46

Cat: Large Blend 16.79 4.92 -26.41 -8.34 -2.06 -1.50

CREF Growth Large Cap Growth 2.91% 15.54 10.95 -26.03 -5.29 -2.01 -5.01 0.58 Perform

Russell 1000 Growth 16.32 11.53 -24.50 -5.45 -1.83 -4.18

Cat: Large Growth 15.74 10.50 -27.13 -6.86 -1.81 -2.42

CREF Global Equities Global 2.38% 20.91 7.39 -30.37 -8.13 -0.57 -1.08 0.65 Underperform

MSCI WORLD 20.75 6.35 -29.50 -8.02 0.03 -0.85

Cat: World Stock 21.30 10.10 -28.39 -7.20 0.76 1.31

TIAA Real Estate Specialty - Real Estate 0.60% -9.96 -17.49 -29.84 -5.26 2.50 4.83 1.01 N/A

Wilshire REIT Index 31.46 -13.13 -45.35 -19.73 -3.28 5.53

Cat: Specialty - Real Estate 29.88 -8.63 -43.13 -19.10 -3.70 4.89

RETURNS AS OF 06/30/2009

(%) of

Plan

Annualized Return Evaluation

Methodology

Expense

Ratio

Page 84: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

84

Quantitative Analysis Summary

0%

25%

50%

100%

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

Fund Name Fund Category

Fund

Wgt* 2Q09 1Q09 4Q08 3Q08

CREF Inflation Linked Bond Inflation Protected Bond 2.44% 29.89 28.64 26.31 25.70

Barclays U.S. Tips

CREF Bond Market Intermediate Bond 2.74% 26.82 23.60 23.22 24.67

Barclays Aggregate Bond

CREF Social Choice Moderate Allocation 2.58% 40.81 43.69 43.08 41.25

40% Barclays Agg Bond/60% S&P 500 Index

CREF Stock Large Cap Blend 21.81% 27.76 30.95 31.09 28.47

S&P 500 Index

CREF Growth Large Cap Growth 2.91% 49.83 50.19 53.36 52.59

Russell 1000 Growth

CREF Global Equities Global 2.38% 61.06 61.40 60.44 57.21

MSCI World

PLAN WEIGHTED SCORE: 32.92 34.47 34.91 33.07

*Fund weightings are remeasured by assigning a proportionate weighting to each fund included in the Evaluation Methodology Score.

EVALUATION METHODOLOGY SCORE

Page 85: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

85

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

CREF Inflation Linked Bond

Ranking vs. Peers - Inflation Protected Bond

Inflation Protected Bond Universe = 147 Funds 6/30/2009

Total Return 35.00%

10 Year 35.00%

5 Year 35.00%

3 Year 35.00%

Rolling 12-month - 10 years 27.00%

Rolling 36-Month - 10 years 32.00%

Sharpe Ratio 28.50%

10 Year 7.00%

5 Year 27.00%

3 Year 38.00%

Information Ratio 30.50%

10 Year 8.00%

5 Year 33.00%

3 Year 38.00%

Up Capture Ratio - 10 years 17.00%

Down Capture Ratio - 10 years 59.00%

Style Consistency to Benchmark - Lehman US TIPS Index 20.00%

R2 20.00%

Avg Credit Quality 20.00%

Expense Ratio 0.50 20.00%

Total Average Ranking 29.89%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 86: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

86

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

CREF Bond Market

Ranking vs. Peers - Intermediate Bond

Intermediate Bond Universe = 1222 Funds 6/30/2009

Total Return 35.10%

10 Year 24.00%

5 Year 36.00%

3 Year 39.00%

Rolling 12-month - 10 years 13.00%

Rolling 36-Month - 10 years 21.00%

Sharpe Ratio 29.90%

10 Year 19.00%

5 Year 32.00%

3 Year 33.00%

Information Ratio 30.40%

10 Year 17.00%

5 Year 35.00%

3 Year 33.00%

Up Capture Ratio - 10 years 26.00%

Down Capture Ratio - 10 years 46.00%

Style Consistency to Benchmark - Barclays US Aggregate Bond Index 20.00%

R2 20.00%

Avg Credit Quality 20.00%

Expense Ratio 0.50 20.00%

Total Average Ranking 26.82%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 87: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

87

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

CREF Social Choice

Ranking vs. Peers - Moderate Allocation

Moderate Allocation Universe = 707 Funds 3/31/2009

Total Return 36.50%

10 Year 51.00%

5 Year 36.00%

3 Year 31.00%

Rolling 12-month - 10 years 46.00%

Rolling 36-Month - 10 years 45.00%

Sharpe Ratio 44.50%

10 Year 54.00%

5 Year 49.00%

3 Year 38.00%

Information Ratio 40.50%

10 Year 49.00%

5 Year 44.00%

3 Year 35.00%

Up Capture Ratio - 10 years 63.00%

Down Capture Ratio - 10 years 31.00%

Style Consistency to Benchmark - Moderate Allocation Category NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 0.53 20.00%

Total Average Ranking 40.81%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 88: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

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0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

CREF Stock

Ranking vs. Peers - Large Cap Blend

Large Cap Blend Universe = 1855 Funds 6/30/2009

Total Return 31.90%

10 Year 33.00%

5 Year 21.00%

3 Year 38.00%

Rolling 12-month - 10 years 16.00%

Rolling 36-Month - 10 years 15.00%

Sharpe Ratio 33.20%

10 Year 40.00%

5 Year 29.00%

3 Year 33.00%

Information Ratio 35.10%

10 Year 40.00%

5 Year 32.00%

3 Year 35.00%

Up Capture Ratio - 10 years 21.00%

Down Capture Ratio - 10 years 51.00%

Style Consistency to Benchmark - S&P 500 26.67%

R2 20.00%

Return Style 40.00%

Holding Style 20.00%

Expense Ratio 0.59 20.00%

Total Average Ranking 27.76%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 89: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

89

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

CREF Growth

Ranking vs. Peers - Large Cap Growth

Large Cap Growth Universe = 2006 Funds 6/30/2009

Total Return 46.90%

10 Year 86.00%

5 Year 54.00%

3 Year 27.00%

Rolling 12-month - 10 years 71.00%

Rolling 36-Month - 10 years 73.00%

Sharpe Ratio 50.90%

10 Year 72.00%

5 Year 60.00%

3 Year 37.00%

Information Ratio 51.00%

10 Year 74.00%

5 Year 59.00%

3 Year 37.00%

Up Capture Ratio - 10 years 34.00%

Down Capture Ratio - 10 years 75.00%

Style Consistency to Benchmark - Russell 1000 Growth 26.67%

R2 20.00%

Return Style 40.00%

Holding Style 20.00%

Expense Ratio 0.58 20.00%

Total Average Ranking 49.83%STATUS PERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 90: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

90

0%

25%

50%

100%

0% - 24.99% Outperform

25% - 49.99% Perform

50% - 100% Underperform

4.44%

Top

Possible

Score

95.56%

Lowest

Possible

Score

Ou

tpe

rfo

rmP

erf

orm

Un

de

rpe

rfo

rm

CREF Global Equities

Ranking vs. Peers - World Stock

World Stock Universe = 538 Funds 6/30/2009

Total Return 64.60%

10 Year 74.00%

5 Year 66.00%

3 Year 60.00%

Rolling 12-month - 10 years 75.00%

Rolling 36-Month - 10 years 74.00%

Sharpe Ratio 68.30%

10 Year 82.00%

5 Year 68.00%

3 Year 63.00%

Information Ratio 67.60%

10 Year 75.00%

5 Year 67.00%

3 Year 65.00%

Up Capture Ratio - 10 years 67.00%

Down Capture Ratio - 10 years 52.00%

Style Consistency to Benchmark - MSCI The World Index NA

R2 NA

Return Style NA

Holding Style NA

Expense Ratio 0.65 20.00%

Total Average Ranking 61.06%STATUS UNDERPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

Page 91: Retirement Plan Quarterly Investment Review · Retirement Plan Quarterly Investment Review All Vendor Summary June 30, ... Even in a best case ... n aples y ls e ls als y com ilities

91

Range of Investments

Lower risk/lower potential reward Higher risk/higher potential reward

BALANCED

CAPITAL

PRESERVATIONINCOME HYBRID VALUE BLEND GROWTH

LARGE BLEND

- CREF Stock

- CREF Equity Index

LARGE GROWTH

- CREF Growth

SP

EC

IAL

TY REAL ESTATE

- TIAA Real Estate

FO

RE

IGN

WORLD STOCK

- CREF Global Equities

EQUITYFIXED INCOME

DO

ME

ST

IC

MONEY MARKET

- CREF Money Market

- TIAA Traditional

INFLATION PROTECTED

BOND

- CREF Inflation Linked

Bond

INTERMEDIATE BOND

- CREF Bond Market

MODERATE ALLOCATION

- CREF Social Choice

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92

Management Style (Returns-based)D

om

es

tic E

qu

ity

Fo

reig

n E

qu

ity

M anager Style

July 1999 - June 2009

USD, 36-month centered window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

V a l u e - G ro w th

Top Value Top Growth

Mid Value Mid Growth

Sm Value Sm Growth

Russell Style Indices

CREF Stock

CREF Equity Index

CREF Growth

M anager Style

July 1999 - June 2009

USD, 36-month centered window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

E u ro p e - A si a

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity Indices

CREF Global Equities

M anager Style

July 2006 - June 2009

USD, single data window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

V a l u e - G ro w th

Top Value Top Growth

Mid Value Mid Growth

Sm Value Sm Growth

Russell Style Indices

CREF Stock

CREF Equity Index

CREF Growth

M anager Style

July 2006 - June 2009

USD, single data window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all

- L

arg

e

-2 -1 0 1 2

E u ro p e - A si a

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity Indices

CREF Global Equities

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93

Portfolio Return vs. Custom Benchmark

Annualized Returns Benchmark Weightings

Fund Name Category (Active) Index (Passive) Weight

CREF Money Market Money Market 3 Month T-Bill 8.46%

TIAA Traditional (GRA, RA) Stable Value Cat: Stable Value 46.83%

TIAA Traditional (GSRA, SRA) Stable Value Cat: Stable Value 7.43%

CREF Inflation Linked Bond Inflation Protected Bond Barclays U.S. TIPS 2.44%

CREF Bond Market Intermediate Term Bond Barclays Aggregate Bond 2.74%

CREF Social Choice Moderate Allocation 40%Barclays Agg/60%S&P500 2.58%

CREF Stock Large Cap Blend S&P 500 Index 21.81%

CREF Equity Index Large Cap Blend Russell 3000 Index 1.81%

CREF Growth Large Cap Growth Russell 1000 Growth 2.91%

CREF Global Equities Global Stock MSCI World 2.38%

TIAA Real Estate Specialty - Real Estate Wilshire REIT 0.60%

3 YR 3 YR 3 YR Expense

Performance as of June 30, 2009 3 Month 1 Year 3 Year 5 Year 10 Year Std Dev Mean Sharpe Ratio

Pepperdine TIAA-CREF 403(b) Plan 6.18% -6.09% 1.23% 3.11% 3.45% 6.34 1.23 -0.24 0.52

Custom Benchmark - Index (Passive) 5.62% -6.28% 0.27% 2.12% 2.51% N/A N/A N/A N/A

Custom Benchmark - Category (Active) 5.86% -6.78% 0.33% 2.26% 2.67% 6.30 0.33 -0.39 0.66*

Annualized Returns

*Custom expense ratio represents the weighted expense (based upon current allocation) of Institutional and Retirement share classes in each asset category.

0%

1%

2%

3%

4%

3 Year 5 Year

Pepperdine TIAA-CREF 403(b) Plan

Custom Benchmark - Index (Passive)

Custom Benchmark - Category (Active)

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Asset Allocation by Fund

Fund % of Assets Assets ($)Evaluation

Methodology

TIAA Traditional (GRA, RA) 46.83% 65,269,314$ N/A

CREF Stock 21.81% 30,393,404$ Perform

CREF Money Market 8.46% 11,793,806$ N/A

TIAA Traditional (GSRA, SRA) 7.43% 10,354,662$ N/A

CREF Growth 2.91% 4,049,729$ Perform

CREF Bond Market 2.74% 3,820,011$ Perform

CREF Social Choice 2.58% 3,599,962$ Perform

CREF Inflation-linked Bond 2.44% 3,405,874$ Perform

CREF Global Equities 2.38% 3,320,370$ Underperform

CREF Equity Index 1.81% 2,517,603$ N/A

TIAA Real Estate 0.60% 842,198$ N/A

Total 100.00% 139,366,932$

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96

Asset Allocation by Category (%)

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Fixed Bond Balanced Large Cap International Specialty

Large Cap Blend Large Cap Growth

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Asset Allocation Quarterly Comparison ($)

Fund Q3-2008 Q4-2008 Q1-2009 Q2-2009

TIAA Traditional 74,537,560$ 75,518,132$ 75,567,619$ 75,623,976$

CREF Stock 45,588,519$ 34,906,400$ 26,273,848$ 30,393,404$

CREF Money Market 12,330,375$ 13,284,795$ 12,206,243$ 11,793,806$

CREF Growth 5,574,794$ 4,253,171$ 3,430,220$ 4,049,729$

CREF Bond Market 4,454,703$ 4,597,185$ 4,058,794$ 3,820,011$

CREF Social Choice 4,543,480$ 3,932,871$ 3,228,543$ 3,599,962$

CREF Inflation-linked Bond 3,069,076$ 3,189,917$ 3,229,041$ 3,405,874$

CREF Global Equities 5,139,016$ 4,062,490$ 2,679,243$ 3,320,370$

CREF Equity Index 3,844,316$ 2,942,082$ 2,081,418$ 2,517,603$

TIAA Real Estate 1,814,808$ 1,580,215$ 943,778$ 842,198$

Total 160,896,646$ 148,267,259$ 133,698,746$ 139,366,932$

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98

Asset Allocation Quarterly Comparison (%)

46.3

3%

28.3

3%

7.6

6%

3.4

6%

2.7

7%

2.8

2%

1.9

1%

3.1

9%

2.3

9%

1.1

3%

50.9

3%

23.5

4%

8.9

6%

2.8

7%

3.1

0%

2.6

5%

2.1

5%

2.7

4%

1.9

8%

1.0

7%

56.5

2%

19.6

5%

9.1

3%

2.5

7%

3.0

4%

2.4

1%

2.4

2%

2.0

0%

1.5

6%

0.7

1%

54.2

6%

21.8

1%

8.4

6%

2.9

1%

2.7

4%

2.5

8%

2.4

4%

2.3

8%

1.8

1%

0.6

0%

0%

10%

20%

30%

40%

50%

60%

TIA

A T

rad

itio

nal

CR

EF

Sto

ck

CR

EF

Mo

ne

y M

ark

et

CR

EF

Gro

wth

CR

EF

Bo

nd

Ma

rke

t

CR

EF

So

cia

l C

hoic

e

CR

EF

In

fla

tio

n-lin

ke

d

Bo

nd

CR

EF

Glo

ba

l E

quitie

s

CR

EF

Eq

uity I

nde

x

TIA

A R

eal E

sta

te

Q3-2008

Q4-2008

Q1-2009

Q2-2009

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99

Growth of Plan Assets

$10,000,000

$30,000,000

$50,000,000

$70,000,000

$90,000,000

$110,000,000

$130,000,000

$150,000,000

$170,000,000

$190,000,000

Plan Assets $163,060,699 $161,259,967 $160,896,646 $148,267,259 $133,698,746 $139,366,932

Mar-08 June-08 Sept-08 Dec-08 Mar-09 Jun-09

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101

Evaluation Methodology Changes

Effective 9/30/2007 – Change to Foreign Large Cap Equity Universe

The evaluation methodology for foreign large cap equity funds has been changed to broaden the universe to include value, blend and growth

funds. The rationale for this change was based on the following criteria:

• Return-based style analysis illustrates that foreign large cap equity funds do not display strong style consistency quarter over quarter

• The portfolio characteristics (P/E, regional exposure, market caps) are highly correlated across the value, blend and growth categories

• Foreign equity fund mandates (prospectus objectives and guidelines) generally allow managers greater flexibility to invest in companies with

various style versus their domestic counterparts

• Foreign funds can invest across regions and countries whose market valuations are affected by individual currency and interest rates that are

inherent to those areas, therefore, classifying holdings in traditional value and growth categories may not accurately reflect the manager’s stock

selection style. For example, a high P/E growth company (based upon domestic measures) in Japan may be classified as a value stock simply

because the Japanese market is undervalued compared to other foreign markets, thereby undervaluing the individual companies.

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102

Glossary of Terms

3-Month Treasury BillThree-month T-bills are government-backed, short-term investmentsconsidered to be risk-free and as good as cash because the maturity is onlythree months.

Constant Maturity Treasury Indices (CMT)The 3 Year Constant Maturity Treasury yield is derived by the Treasuryfrom the daily yield curve. The daily yield curve relates the yield on asecurity to its time to maturity and is based on the closing market bid yieldson actively traded Treasury securities. These market yields are calculatedfrom composites of quotations obtained by the Federal Reserve Bank ofNew York.

Down Capture RatioThe Down Capture Ratio calculates the percentage of return of an index afund will capture during down market cycles.

Expense RatioThe percentage of fund assets paid for operating expenses andmanagement fees, including 12b-1 fees, administrative fees, and all otherasset-based costs incurred by the fund, except brokerage costs. Fundexpenses are reflected in the fund’s NAV. Sales charges are not includedin the expense ratio.

Growth StocksInvestors employing a growth investment strategy buy stocks of companieswith a recent history of increasing earnings, in anticipation that earningsmomentum will continue. Growth stocks are often characterized by highvaluation ratios (e.g., price-to-earnings ratios). See also: value stocks.

Information RatioSimilar to the Sharpe Ratio, the Information Ratio is a risk-adjustedperformance measurement, taking the excess return over the fund’sappropriate index and dividing it by the standard deviation. The InformationRatio measures the consistency with which a manager beats a benchmark.

Formula: (Rx – Ri) / e

Rx = Fund’s 5 year annualized return (calculated on a monthly basis)

Ri = Benchmark index 5 year annualized return

e = (Excess return – Benchmark Index) 2

Lehman Brothers Bond IndicesThe Lehman Brothers Bond Indices include fixed rate debt issue ratedinvestment grade or higher by Moody’s, S&P, or Fitch, in that order. Allissues have at least one year to maturity and an outstanding par value of atleast $100 million for US Government issues and $50 million for all others.All returns are market value weighted inclusive of accrued interest.

MSCI Country IndicesMorgan Stanley Capital International Inc. (MSCI) maintains a set of indicescommonly used by institutional investors as benchmarks for internationalstock markets. The most commonly cited index is the Europe, Australasia,Far East Index (EAFE), which covers developing markets within theindicated regions. The MSCI EAFE is typically used as a benchmark forbroadly diversified “international” or “foreign” stock funds and accounts. TheMSCI World Index covers all developed markets in the world including theUnited States, and is typically used as a benchmark for broadly diversified“global” or “world” stock funds and accounts. MSCI maintains manyspecialized indices covering other developed regions, emerging markets,and specific countries.

Mutual FundA type of investment company that offers for sale or has outstandingsecurities which it has issued and which are redeemable on demand by thefund at current net asset value. All owners in the fund share in the gains orlosses of the fund.

Net Asset Value (NAV)Usually used in connection with investment companies to mean net assetvalue per share. An investment company computes its assets daily, or eventwice daily, by totaling the market value of all securities owned. All liabilitiesare deducted, and the balance is divided by the number of sharesoutstanding. The resulting figure is the net asset value per share. The netasset value of a mutual fund (open-end investment company) is the bid andredemption price.

Russell 1000 Value IndexMarket-capitalization weighted index of those firms in the Russell 1000 withlower price-to-book ratios and lower forecasted growth values. The Russell1000 includes the largest 1000 firms in the Russell 3000, which representsapproximately 98% of the invest-able US equity market.

R-squaredR-squared is a measure of what percentage of a fund’s return can be attributed to movements in the benchmark. An R-squared of 100 indicates that all movements of a fund can be explained by its benchmark index.

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103

Glossary of Terms

Russell 1000 Growth IndexMarket-capitalization weighted index of those firms in the Russell 1000 withhigher price-to-book ratios and higher forecasted growth values. TheRussell 1000 includes the largest 1000 firms in the Russell 3000, whichrepresents approximately 98% of the invest-able US equity market.

Russell Mid Cap Value IndexMarket-weighted total return index that measures the performance ofcompanies within the Russell 2000 having lower price-to-book ratios andlower forecasted growth values. The Russell 2000 includes the 2000 firmsin the Russell 3000 with the smallest market capitalizations. The Russell3000 Index represents approximately 98% of the invest-able US equitymarket.

Russell Mid Cap Growth IndexMarket-weighted total return index that measures the performance ofcompanies within the Russell 2000 having higher price-to-book ratios andhigher forecasted growth values. The Russell 2000 includes firms 201through 1000, based on market capitalization, from the Russell 3000. TheRussell 3000 Index represents approximately 98% of the invest-able USequity market.

Russell 2000 Value Index

Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the investable US equity market.

Russell 2000 Growth Index

Market-weighted total return index that measures the performance ofcompanies within the Russell 2000 Index having higher price-to-book ratiosand higher forecasted growth values. The Russell 2000 Index includes the2000 firms from the Russell 3000 Index with the smallest marketcapitalizations. The Russell 3000 Index represents 98% of the investableUS equity market.

S&P 500 IndexThe S&P 500 Index consists of widely held common stocks, consisting offour broad sectors (industrials, utilities, financial, and transportation). It is amarket-value weighted index (stock price times shares outstanding), witheach stock affecting the index in proportion to its market value. This index,calculated by Standard & Poor’s, is a total return index with dividendsreinvested.

Sharpe RatioA direct measure of reward-to-risk. Defined as:

Formula: (Rx - Rf) / x

Rx = Average annual rate of return of XRf = Best available rate of return of a “risk-free” security (3 month T-bill)

x = (Excess return – 3 month T-bill) 2

Sharpe ratio measures the efficiency in the amount of risk taken ascompared to the reward received for taking such risk.

Standard DeviationA statistical measurement of dispersion about an average, which, for amutual fund, depicts how widely the returns varied over a certain period oftime. Investors use the standard deviation of historical performance to try topredict the range of returns that are most likely for a given fund. When afund has a high standard deviation, the predicted range of performance iswide, implying greater volatility.

Total ReturnsReturns for periods longer than one year are expressed as “annualizedreturns.” This is equivalent to the compound rate of return which, over acertain period of time, would produce a fund’s total return over that sameperiod.

Up Capture RatioThe Up Capture Ratio calculates the percentage return of an index a fundwill capture during up market cycles.

Value StocksInvestors employing a value investment strategy buy stocks of companiesthey believe are under-priced based on their fundamental ability to generateearnings, in anticipation that the price performance of the stock will reverse.Value stocks are often characterized by low valuation ratios (e.g., price-to-earnings ratios). See also: growth stocks.

Wilshire 4500Measures the performance of all US common equity securities excluding thestocks in the S&P 500. Wilshire indices are reported as total returns withdividends reinvested.

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104

Retirement Plan Limits

ITEM IRS CODE 2009 2008 2007 2006 2005

Defined Contribution Annual Limit 1 415 (c)(1)(A) 49,000$ 46,000$ 45,000$ 44,000$ 42,000$

Defined Benefit Annual Limit 1 415 (b)(1)(A) 195,000$ 185,000$ 180,000$ 175,000$ 170,000$

Maximum Compensation Limit 2 401(a)(17) 245,000$ 230,000$ 225,000$ 220,000$ 210,000$

401(k) & 403(b) Employee Deferral Limit 3 402(g)(1) 16,500$ 15,500$ 15,500$ 15,000$ 14,000$

Catch-Up Deferral Limit 4 414(v)(2)(B)(i) 5,500$ 5,000$ 5,000$ 5,000$ 4,000$

Highly Compensated Employee (HCE) Compensation Level 5 414(q)(1)(B) 110,000$ 105,000$ 100,000$ 100,000$ 95,000$

Maximum SIMPLE Plan Deferral Limit 1 408(p)(2)(E) 11,500$ 10,500$ 10,500$ 10,000$ 10,000$

Social Security Tax Wage Base 106,800$ 102,000$ 97,500$ 94,200$ 90,000$

1 Limits are applied for the calendar year.

2 Based on year in which plan year begins. A ll compensation from a single employer (including all members of a contro lled group) must be aggregated for purposes of this limit.

3 Employee deferrals to 401(k) and 403(b) plans must be aggregated for purposes of this limit. Limits are applied during the calendar year.

4 Available to employees age 50 and o lder during the calendar year.

5 For the 2008 plan year, an employee who earned $100,000 in 2007 is an HCE. For the 2009 plan year, an employee who earns $105,000 in 2008 is an HCE.

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105

WARRANTIES

This report was prepared by Benefit Funding Services Group using data compiled from various sources. Benefit Funding Services

Group does not warrant the accuracy of data provided by other sources, but does make reasonable efforts to obtain and utilize only

reliable information.

Past investment performance does not guarantee future results.

The material in this report is for Plan Sponsor use only and should not be reproduced without written permission by Benefit Funding

Services Group.

DISCLOSURES

Returns stated in this report are net of fees unless otherwise noted.

Sharpe Ratio and Standard Deviation data are provided for a 3-year period prior to the reporting date, unless otherwise noted.

Calculations for returns-based style analysis charts are done by MPI Stylus.

Evaluation methodology calculations are provided by MPI Stylus and Morningstar, Inc.

Universe information is provided by Morningstar, Inc.

Fund details and portfolio characteristics are provided by Morningstar, Inc. with the most recent data available from the investment

companies.

Investment advisory services offered through Investment Advisor Representatives of Benefit Funding Services Group.

Benefit Funding Services Group

2040 Main Street, Suite #150, Irvine, CA 92614

Phone 949.955.2552 Fax 949.955.2553