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HomeMy Public PortalAbout2019 4th Quarter ReportVisit the Retirement and Investments Thought Leadership Site (https://retirement-investment-insights.aon.com); sharing our best thinking. Metropolitan St. Louis Sewer District Pension Plan | Fourth Quarter 2019 Quarterly Investment Review Executive Summary Page 1 Total Plan Page 7 Total Domestic Equity Page 19 Total International Equity Page 33 Total Fixed Income Page 45 Real Estate Page 59 Market Environment Page 63 Appendix Page 77 Disclaimers and Notes Page 87 Table Of Contents Executive Summary Page 1 Aon Happenings Follow Aon’s Retirement and Investment Solutions on LinkedIn Follow our page to have your LinkedIn feed show content from our retirement and investment consulting groups. Learn more: https://www.linkedin.com/showcase/aon-retirement Did you know? As our Global Risk Management Survey shows, cyber security is top of mind for most clients and organizations. ▪Aon's is pleased to announce the recent acquisition of Cytelligence, a boutique cyber-security firm that provides incident response and digital forensics consultancy services to help organizations, executives, and security teams respond to threats. ▪The acquisition will help us expand current coverage within the cyber market at a time when cyber claims are almost doubling year-over-year. Global cyber insurance premiums are expected to grow from $4 billion in 2018 to $20 billion by 2025. Aon launches 2020 Webinar Series with Global Market Outlook and SECURE Act Webinars In January, Aon’s Investment Solutions team shared our market outlook for 2020 and the corresponding impact for client portfolios. View: https://retirement-investment-insights.aon.com/retirement- investment-insights/aon-2020-market-outlook-webinar Aon also provided insights into the new SECURE legislation and what the rules could mean for plan sponsors. View: https://retirement-investment- insights.aon.com/retirement-investment-insights/aon-retirement- transformed-new-legislation-including-the-secure-act-webinar We continue our webinar series on March 3, by asking "How do you create DC Plans of the future?“ Contact your consultant to register. Bill Ryan Elected Investment Policy & Design Committee Chair for DCIIA Congratulations to Bill Ryan, Partner and Head of North American DC Multi- Asset Solutions Group at Aon, for being elected Investment Policy & Design Committee Chair for the Defined Contribution Institutional Investment Association (DCIIA) Executive Committee. See the announcement at: https://dciia.org/news/486046/DCIIA-Elects-2020- 2021-Executive-Committee.htm This site contains information that has been created, published, maintained or otherwise posted by institutions or organizations independent of AHIC. AHIC does not endorse, approve, certify or control these websites and does not assume responsibility for the accuracy, completeness or timeliness of the information located there. Page 2 Thought Leadership Highlights Current Topics of Interest and Events Webinar: 2020 Investment Market Outlook Replay Webinar: SECURE Act Replay White Papers All Investors: How and Why Might Negative Interest Rates and Bond Yields ‘Go Global?’ Link All Investors: How Picking Investment Managers is Like Picking Charities Link All Investors: Global Perspectives on Responsible Investing Link All Investors: Bank Capital Relief Link All Investors: Why Japanification is Becoming Harder to Avoid Link All Investors: Global Invested Capital Markets Link All Investors: 2020 and Beyond: Where Will We Find Those Market Returns from? Link All Investors: The Year that was: The Midas Touch in Action Link Retirement Plans: 2020 Compliance Calendar Link Retirement Plans: Legal and Compliance Quarterly Update Link Retirement Plans: The Real Deal -Impact of Investment on Retirement Income Adequacy Link Retirement Plans: Six Key Themes of the SECURE Act and Other Retirement Plan Provisions Link All Investors ex-DC: When Opportunity Knocks Again: Ideas for Incorporating Opportunistic Flexibility Into Asset Allocation Link All Investors ex-DC: Real Estate Investing in the Current Rate Environment Link All Investors ex-DC: Artificial Intelligence and Machine Learning: How the Hedge Fund Industry is Implementing These Technological Advances Link Private DB: Global Pension Risk Survey 2019 Link Private DB: Case Study: Navigating the Pension Plan from Static Allocation to Full Termination Link Non-Profit: Understanding Your Non-Profit's Needs and Assessing OCIO Governance Link DC: Target Date Fund Litigation Link Thought Leadership Hub https://retirement-investment-insights.aon.com/ Opinions,estimates,forecasts,and statements on financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. The views and strategies described may not be suitable for all investors.References to specific securities,asset classes,and financial markets are for illustrative purposes only and are not intended to be,and should not be interpreted as,recommendations. Page 3 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 11.7% 8.2% 5.7%5.6% 3.0%4.2% 6.3%6.1% -3.9% 13.6% 11.8% 5.5% 3.7%3.7% 7.0%8.0%7.6% -4.7% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% S&P 500 Russell 2000 MSCI EAFE MSCI Emerging Markets Bloomberg Bar clays U.S. Aggreg ate Bloomberg Bar clays U.S. Long Gov't Bloomberg Bar clays U.S. Long Credit Bloomberg Barclays U.S. High Yield Bloomberg Commodi ty Index LONG TERM ANNUALIZED RET URNS AS OF 12/31/2019 Five-Year Ten-Year Sour ce:Ru ssell, MSCI, Bloomberg Bar clay s, B loomberg 9.1%9.9%8.2% 11.8% 0.2% -4.1% 1.2%2.6%4.4% 31.5% 25.5% 22.0% 18.4% 8.7% 14.7% 23.4% 14.3% 7.7% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% S&P 500 Russell 2000 MSCI EAFE MSCI Emerging Markets Bloomberg Barcla ys U.S. Aggr eg ate Bloomber g Barclays U.S. Long Gov't Bloomberg Barcla ys U.S. Long Credit Bloomber g Barclays U.S. High Yield Bloomberg Commodi ty Index SHORT TERM RET URNS AS OF 12/31/2019 Four th Quarte r 2019 One-Year Source:Ru ssell, MSCI, Bloomberg Barclay s, B loomberg. MS CI Indices show net to tal ret urns throughout th is r eport . All othe r indices sh ow gross total returns. Market Highlights Page 4 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Fourth Quarter 1-Year 3-Year1 5-Year1 10-Year1 Equity MSCI All C ountry World IM I 9.05%26.35%12.09%8.34%8.91% MSCI All C ountry World 8.95%26.60%12.44%8.41%8.79% Dow Jones U.S. Total Stock Market 9.04%30.90%14.52%11.18%13.43% Russell 3000 9.10%31.02%14.57%11.24%13.42% S&P 500 9.07%31.49%15.27%11.70%13.56% Russell 2000 9.94%25.52%8.59%8.23%11.83% MSCI All C ountry World ex-U.S. IMI 9.20%21.63%9.84%5.71%5.21% MSCI All C ountry World ex-U.S.8.92%21.51%9.87%5.51%4.97% MSCI EAFE 8.17%22.01%9.56%5.67%5.50% MSCI EAFE (Local Currenc y)5.19%21.67%7.66%6.73%7.24% MSCI Emerging Markets 11.84%18.42%11.57%5.61%3.68% Fixed Income Bloomberg Barclays Global Aggregate 0.49%6.84%4.27%2.31%2.48% Bloomberg Barclays U.S. Aggregate 0.18%8.72%4.03%3.05%3.75% Bloomberg Barclays U.S. Long Gov't -4.06%14.75%6.95%4.16%6.97% Bloomberg Barclays U.S. Long Credit 1.18%23.36%8.88%6.31%7.99% Bloomberg Barclays U.S. Long Gov't/C redit -1.12%19.59%8.07%5.42%7.59% Bloomberg Barclays U.S. TIP S 0.79%8.43%3.32%2.62%3.36% Bloomberg Barclays U.S. High Yield 2.61%14.32%6.37%6.13%7.57% Bloomberg Barclays Global Treasury ex U.S.-0.02%5.04%4.40%1.98%1.49% JP Morgan EMBI Global (Emerging Markets)2.09%14.42%6.06%5.88%6.57% Commodities Bloomberg Commodity Index 4.42%7.69%-0.94%-3.92%-4.73% Goldman Sachs Commodity Ind ex 8.31%17.63%2.35%-4.32%-5.44% Hedge Funds HFRI Fund -Weighted Composite2 3.50%10.38%4.52%3.55%4.04% HFRI Fund of Fund s2 3.04%8.34%3.87%2.36%2.83% Real Estate NARE IT U.S . Equity RE ITS -0.76%26.00%8.14%7.21%11.94% NC REIF NF I - ODCE 1.52%5.35%7.10%8.97%11.42% FTSE Global Core Infrastructure Index 3.75%26.26%13.50%8.12%10.74% Private Equity Burgiss Private iQ Global Pri va te Equity3 11.61%14.89%11.58%13.92% MSCI Indices show net total returns throug ho ut this report. A ll other ind ices show gross total returns. 1 Periods are annuali zed. 2 Latest 5 months of HFR data are estimated by HFR and may change in the future. 3 Burgiss Private iQ Global P riva te Equity data is as at June 30, 2019 Returns of the Major Capital Markets Period Ending 12/31/2019 Market Highlights Page 5 This Page Left Blank Intentionally Page 6 Total Plan Page 7 Change in Market Value From October 1, 2019 to December 31, 2019 Summary of Cash Flow $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 Millions ($)Beginning Market Value Net Additions / Withdrawals Investment Earnings Ending Market Value $280.2 $1.3 $14.4 $295.9 1 Quarter 2019 Total Pension Beginning Market Value 280,210,900 261,070,784 + Additions / Withdrawals 1,268,061 -6,421,716 + Investment Earnings 14,434,396 41,264,291 = Ending Market Value 295,913,358 295,913,358 Total Pension Total Plan Asset Summary As of December 31, 2019 Page 8 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - 15 Years Total Pension Policy Benchmark 0.0 8.0 16.0 24.0 32.0 Return1 Quarter 1 Year 3 Years 5 Years 10 Years Inception 1/1/93 5.0 17.4 7.9 5.7 6.8 5.1 16.2 7.7 5.4 6.5 7.3 Total Pension Benchmark 0.96 0.99 1.02 1.05 1.08 12/04 6/06 12/07 6/09 12/10 6/12 12/13 6/15 12/16 6/18 12/19 0.99 Quarterly Out Performance Quarterly Under Performance 0.0% 0.7% 1.4% -0.7 % -1.4 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Total Plan Performance Summary As of December 31, 2019Total Pension Page 9 Allocation Market Value ($) %Policy(%) Performance(%) 1 Quarter 1 Year 3 Years 5 Years 10 Years Since Inception Inception Date Total Pension 295,913,358 100.0 100.0 5.1 (53)16.2 (81)7.7 (82)5.4 (84)6.5 (88)7.3 (70)01/01/1993 Policy Benchmark 5.0 (61)17.4 (67)7.9 (78)5.7 (81)6.8 (83) All Public Plans < $1B-Total Fund Median 5.2 18.6 9.0 6.6 7.8 7.6 Total Domestic Equity 105,166,973 35.5 9.1 (24)30.6 (30)13.8 (42)10.5 (47)12.3 (47)09/01/2013 Russell 3000 Index 9.1 (27)31.0 (26)14.6 (24)11.2 (22)13.2 (15) All Public Plans-US Equity Segment Median 8.7 29.7 13.6 10.3 12.2 Total Large-Cap Equity 73,563,551 24.9 25.0 9.0 (31)31.4 (25)14.6 (29)11.0 (26)12.5 (46)9.5 (60)06/01/2003 Russell 1000 Index 9.0 (31)31.4 (25)15.0 (26)11.5 (22)13.5 (25)10.0 (46) IM U.S. Equity (SA+CF) Median 8.1 27.6 11.5 9.2 12.3 9.9 BlackRock Russell 1000 Index Fund Non-Lending 73,563,551 24.9 9.0 (31)31.4 (25)13.6 (26)03/01/2017 Russell 1000 Index 9.0 (31)31.4 (25)13.7 (26) IM U.S. Equity (SA+CF) Median 8.1 27.6 10.5 Total Small-Cap Equity 31,603,422 10.7 10.0 9.4 (26)28.7 (43)11.7 (49)8.9 (53)12.8 (37)11.2 (19)06/01/2003 Russell 2000 Index 9.9 (19)25.5 (64)8.6 (69)8.2 (62)11.8 (61)9.8 (52) IM U.S. Equity (SA+CF) Median 8.1 27.6 11.5 9.2 12.3 9.9 Kennedy Mid Cap Value 15,339,463 5.2 8.4 (43)28.6 (44)9.0 (65)7.5 (71)12.2 (52)10.0 (31)02/01/2008 Russell Midcap Value Index 6.4 (79)27.1 (54)8.1 (72)7.6 (69)12.4 (48)9.0 (52) IM U.S. Equity (SA+CF) Median 8.1 27.6 11.5 9.2 12.3 9.0 TimesSquare Small Cap Growth 16,263,959 5.5 10.2 (18)28.2 (46)14.2 (33)10.3 (32)13.2 (25)10.5 (7)02/01/2002 Russell 2000 Growth Index 11.4 (11)28.5 (44)12.5 (42)9.3 (43)13.0 (28)8.6 (35) IM U.S. Equity (MF) Median 7.9 27.4 11.0 8.7 11.7 8.0 Total International Equity 54,316,668 18.4 18.0 8.7 (74)20.2 (88)9.5 (84)5.2 (94)5.0 (98)09/01/2013 MSCI AC World ex USA Index (Net)8.9 (65)21.5 (81)9.9 (70)5.5 (82)5.6 (90) All Public Plans-Intl. Equity Segment Median 9.5 23.2 10.5 6.1 6.3 Morgan Stanley International Equity 35,695,098 12.1 7.4 (83)20.4 (61)9.1 (61)5.1 (63)5.4 (50)4.7 (74)04/01/2005 MSCI EAFE Index (Net)8.2 (72)22.0 (48)9.6 (54)5.7 (50)5.5 (48)4.9 (69) IM International Equity (MF) Median 9.6 21.8 9.8 5.7 5.4 5.7 Morgan Stanley Emerging Markets Fund 18,621,570 6.3 11.1 (47)19.5 (50)10.1 (59)5.0 (55)3.5 (53)6.9 (55)04/01/2005 MSCI Emerging Markets Index (Net)11.8 (32)18.4 (57)11.6 (37)5.6 (39)3.7 (48)7.5 (40) IM Emerging Markets Equity (MF) Median 10.9 19.4 10.5 5.1 3.6 7.3 Asset Allocation & Performance As of December 31, 2019 Page 10 Asset Allocation & Performance As of December 31, 2019 Allocation Market Value ($) %Policy(%) Performance(%) 1 Quarter 1 Year 3 Years 5 Years 10 Years Since Inception Inception Date Total Fixed Income 100,610,912 34.0 35.0 1.2 (8)9.1 (47)4.7 (28)3.2 (58)4.0 (64)4.4 (54)07/01/2003 Blmbg. Barc. Intermed. U.S. Government/Credit 0.4 (58)6.8 (81)3.2 (82)2.6 (81)3.1 (86)3.4 (96) All Public Plans-US Fixed Income Segment Median 0.5 8.9 4.2 3.3 4.3 4.7 Income Research 39,328,746 13.3 0.2 (87)6.7 (43)3.2 (40)2.5 (46)3.3 (34)4.6 (10)07/01/2001 Blmbg. Barc. Intermed. U.S. Government/Credit 0.4 (47)6.8 (36)3.2 (34)2.6 (39)3.1 (48)4.1 (52) IM U.S. Intermediate Duration (SA+CF) Median 0.3 6.6 3.1 2.5 3.0 4.1 Prudential Core Plus Bond 36,944,488 12.5 0.4 (49)11.3 (15)5.7 (8)4.6 (9)06/01/2015 Blmbg. Barc. U.S. Aggregate 0.2 (79)8.7 (83)4.0 (81)3.1 (80) IM U.S. Broad Market Core+ Fixed Income (SA+CF) Median 0.4 9.6 4.4 3.5 Brandywine Global Opportunistic Fixed Income 24,337,678 8.2 4.2 (11)9.3 (48)5.3 (36)2.4 (69)4.9 (29)5.1 (31)01/01/2005 FTSE World Government Bond Index -0.4 (96)5.9 (88)4.1 (71)2.0 (78)1.9 (93)2.7 (91) IM Global Fixed Income (SA+CF) Median 1.5 9.0 4.9 3.3 3.7 4.2 Hedge Fund 1,252,584 0.4 0.0 Entrust Capital Diversified Fund 1,252,584 0.4 Real Estate 32,566,168 11.0 12.0 -0.2 -2.9 2.7 5.1 8.2 5.1 06/01/2006 NCREIF Property Index 1.5 6.4 6.7 8.2 10.2 7.5 UBS Trumbull Property Fund 32,566,168 11.0 -0.2 -3.0 2.7 5.1 8.2 5.1 06/01/2006 NCREIF Property Index 1.5 6.4 6.7 8.2 10.2 7.5 Cash Account 2,000,054 0.7 0.0 0.5 2.3 1.7 1.1 0.6 1.5 07/01/2003 ICE BofAML 3 Month U.S. T-Bill 0.5 2.3 1.7 1.1 0.6 1.4 **The EnTrust Capital Diversified Fund market value is as of 11/30/2019 and is currently in the process of liquidation. Page 11 Performance(%) 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Total Pension 16.2 (81)-4.3 (38)12.3 (77)5.1 (85)-0.7 (57)2.9 (93)10.9 (86)12.1 (49)1.2 (30)11.2 (71)20.2 (41) Policy Benchmark 17.4 (67)-4.5 (43)12.2 (79)6.6 (55)-1.4 (71)3.5 (90)12.3 (79)11.6 (60)1.1 (31)11.5 (65)19.5 (48) Total Domestic Equity 30.6 (30)-6.1 (50)20.1 (47)9.6 (94)1.9 (7)10.1 (79)----- Russell 3000 Index 31.0 (26)-5.2 (26)21.1 (26)12.7 (48)0.5 (36)12.6 (21)----- Total Large-Cap Equity 31.4 (25)-4.8 (29)20.4 (41)7.9 (74)3.9 (15)10.9 (39)32.0 (70)14.0 (62)2.4 (24)12.4 (85)25.5 (69) Russell 1000 Index 31.4 (25)-4.8 (29)21.7 (32)12.1 (51)0.9 (31)13.2 (18)33.1 (61)16.4 (35)1.5 (30)16.1 (61)28.4 (57) BlackRock Russell 1000 Index Fund Non-Lending 31.4 (25)-4.8 (29)--------- Russell 1000 Index 31.4 (25)-4.8 (29)--------- Total Small-Cap Equity 28.7 (43)-9.5 (60)19.6 (45)15.6 (37)-4.8 (76)7.2 (63)40.3 (22)13.3 (67)0.8 (37)26.8 (23)35.3 (33) Russell 2000 Index 25.5 (64)-11.0 (68)14.6 (70)21.3 (17)-4.4 (74)4.9 (77)38.8 (27)16.3 (36)-4.2 (74)26.9 (23)27.2 (61) Kennedy Mid Cap Value 28.6 (44)-14.5 (86)18.0 (52)22.9 (14)-9.9 (93)15.8 (6)33.3 (60)13.6 (65)-0.8 (51)27.0 (22)34.8 (35) Russell Midcap Value Index 27.1 (54)-12.3 (75)13.3 (77)20.0 (21)-4.8 (76)14.7 (9)33.5 (59)18.5 (20)-1.4 (55)24.8 (31)34.2 (37) TimesSquare Small Cap Growth 28.2 (46)-4.2 (27)21.1 (36)8.4 (63)1.0 (30)-2.5 (93)47.7 (5)13.1 (67)2.6 (17)27.3 (15)35.7 (33) Russell 2000 Growth Index 28.5 (44)-9.3 (61)22.2 (30)11.3 (51)-1.4 (47)5.6 (70)43.3 (9)14.6 (54)-2.9 (56)29.1 (10)34.5 (36) Total International Equity 20.2 (88)-14.6 (60)28.0 (52)0.3 (93)-2.0 (33)-5.5 (100)----- MSCI AC World ex USA Index (Net)21.5 (81)-14.2 (52)27.2 (66)4.5 (33)-5.7 (85)-3.9 (68)----- Morgan Stanley International Equity 20.4 (61)-13.8 (31)25.2 (73)-2.0 (82)0.4 (31)-6.1 (70)20.3 (40)19.6 (43)-7.6 (10)6.1 (89)21.6 (93) MSCI EAFE Index (Net)22.0 (48)-13.8 (31)25.0 (74)1.0 (64)-0.8 (40)-4.9 (59)22.8 (25)17.3 (66)-12.1 (30)7.8 (83)31.8 (71) Morgan Stanley Emerging Markets Fund 19.5 (50)-17.3 (62)35.0 (51)6.7 (62)-10.3 (26)-4.5 (71)-0.8 (48)20.2 (42)-18.4 (37)18.5 (58)69.5 (73) MSCI Emerging Markets Index (Net)18.4 (57)-14.6 (34)37.3 (38)11.2 (37)-14.9 (59)-2.2 (50)-2.6 (60)18.2 (58)-18.4 (37)18.9 (53)78.5 (37) Asset Allocation & Performance As of December 31, 2019 Page 12 Asset Allocation & Performance As of December 31, 2019 Performance(%) 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Total Fixed Income 9.1 (47)-1.0 (70)6.3 (14)4.2 (54)-2.1 (90)2.4 (95)-1.7 (52)10.9 (13)3.8 (100)8.7 (51)18.9 (20) Blmbg. Barc. Intermed. U.S. Government/Credit 6.8 (81)0.9 (9)2.1 (89)2.1 (86)1.1 (9)3.1 (93)-0.9 (35)3.9 (99)5.8 (89)5.9 (98)5.2 (86) Income Research 6.7 (43)0.8 (32)2.0 (67)2.3 (38)0.9 (54)3.3 (48)-0.9 (56)5.9 (24)5.6 (48)6.2 (43)14.4 (10) Blmbg. Barc. Intermed. U.S. Government/Credit 6.8 (36)0.9 (28)2.1 (55)2.1 (47)1.1 (40)3.1 (55)-0.9 (49)3.9 (69)5.8 (34)5.9 (60)5.2 (79) Prudential Core Plus Bond 11.3 (15)-0.4 (44)6.6 (12)5.8 (26)------- Blmbg. Barc. U.S. Aggregate 8.7 (83)0.0 (17)3.5 (85)2.6 (92)------- Brandywine Global Opportunistic Fixed Income 9.3 (48)-5.2 (90)12.8 (4)5.2 (54)-8.4 (92)6.3 (19)-3.5 (73)14.1 (25)8.0 (14)13.9 (20)20.5 (35) FTSE World Government Bond Index 5.9 (88)-0.8 (26)7.5 (44)1.6 (86)-3.6 (62)-0.5 (82)-4.0 (78)1.6 (93)6.4 (26)5.2 (86)2.6 (96) Hedge Fund Entrust Capital Diversified Fund Real Estate -2.9 6.0 5.3 6.0 ------- NCREIF Property Index 6.4 6.7 7.0 8.0 ------- UBS Trumbull Property Fund -3.0 6.0 5.3 6.0 11.7 10.4 9.2 9.0 12.1 15.9 -22.9 NCREIF Property Index 6.4 6.7 7.0 8.0 13.3 11.8 11.0 10.5 14.3 13.1 -16.8 Cash Account 2.3 2.0 1.0 0.3 0.0 0.0 0.0 0.1 0.0 0.1 0.5 ICE BofAML 3 Month U.S. T-Bill 2.3 1.9 0.9 0.3 0.1 0.0 0.1 0.1 0.1 0.1 0.2 Page 13 Total Fund Performance 0.00%2.00%4.00%6.00%8.00% Total Fund Total Fund Benchmark Total Value Added 5.14% 5.13% 0.01% Total Value Added:0.01% 0.00%0.02%0.04%-0.02 %-0.04 % Other Manager Value Added Asset Allocation 0.02% 0.01% -0.01 % Total Asset Allocation:-0.01 % Average Active Weight 0.00%0.81%1.62%-0.81 %-1.62 % Cash Account Real Estate Hedge Fund Total Fixed Income Total International Equity Total Small-Cap Equity Total Large-Cap Equity Weight (%)0.69% -0.62 % 0.44% -0.44 % -0.05 % 0.08% -0.09 % Asset Allocation Value Added 0.00%0.04%0.08%-0.04 %-0.08 % -0.03 % 0.02% -0.02 % 0.02% 0.00% 0.00% 0.00% Total Manager Value Added:0.01% Manager Value Added 0.00%0.30%0.60%-0.30 %-0.60 % 0.00% -0.20 % 0.00% 0.29% -0.04 % -0.04 % 0.00% Total Pension Total Fund Attribution 1 Quarter Ending December 31, 2019 Page 14 Total Fund Performance 0.00%15.00%30.00%-15.00 % Total Fund Total Fund Benchmark Total Value Added 16.19% 17.30% -1.11 % Total Value Added:-1.11 % 0.00%0.60%-0.60 %-1.20 %-1.80 % Other Manager Value Added Asset Allocation 0.12% -0.36 % -0.87 % Total Asset Allocation:-0.87 % Average Active Weight 0.00%0.80%1.60%-0.80 %-1.60 % Cash Account Real Estate Hedge Fund Total Fixed Income Total International Equity Total Small-Cap Equity Total Large-Cap Equity Weight (%)0.76% -0.09 % 0.68% -0.34 % -0.18 % -0.49 % -0.34 % Asset Allocation Value Added -0.40 %-0.20 %0.00% -0.12 % -0.05 % -0.25 % -0.06 % -0.02 % -0.21 % -0.16 % Total Manager Value Added:-0.36 % Manager Value Added 0.00%2.00%-2.00 %-4.00 % 0.00% -1.24 % 0.00% 0.83% -0.23 % 0.28% 0.00% Total Pension Total Fund Attribution Year To Date Ending December 31, 2019 Page 15 -20.0 -12.0 -4.0 4.0 12.0 20.0 28.0 36.0 Return1 Quarter 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Total Pension 5.1 (53)16.2 (81)7.7 (82)5.4 (84)6.5 (88)-4.3 (38)12.3 (77)5.1 (85)¢ Policy Benchmark 5.0 (61)17.4 (67)7.9 (78)5.7 (81)6.8 (83)-4.5 (43)12.2 (79)6.6 (55)˜ 5th Percentile 6.8 21.9 10.6 7.8 9.2 -1.7 18.3 9.5 1st Quartile 5.7 20.0 9.7 7.1 8.5 -3.8 16.0 7.9 Median 5.2 18.6 9.0 6.6 7.8 -4.8 14.6 6.8 3rd Quartile 4.6 16.6 8.1 5.9 7.1 -5.6 12.6 5.7 95th Percentile 0.9 8.4 5.0 3.7 4.6 -7.2 5.8 3.9 Population 401 388 364 348 292 353 417 461 Plan Sponsor Peer Group Analysis As of December 31, 2019 All Public Plans < $1B-Total Fund Parentheses contain percentile rankings. Page 16 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Total Pension Policy Benchmark FTSE 3 Month T-Bill -1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0 Return (%)0.0 2.0 4.0 6.0 8.0 10.0 Risk (Standard Deviation %) Total Pension Policy Benchmark 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 12/97 3/00 6/02 9/04 12/06 3/09 6/11 9/13 12/15 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Total Pension -0.29 0.81 -0.36 0.98 0.74 -0.17 0.98 5.44 6.01 0.99 Policy Benchmark 0.00 0.00 N/A 1.00 0.78 0.00 1.00 5.74 6.10 1.00 FTSE 3 Month T-Bill -4.73 6.08 -0.78 0.00 N/A 1.03 0.00 1.05 0.26 0.07 Total Pension Risk Profile As of December 31, 2019Total Pension Page 17 Market Value ($) Current Allocation (%) Target Allocation (%) Minimum Allocation (%) Maximum Allocation (%) Differences (%) Total Pension 295,913,358 100.0 100.0 N/A N/A 0.0 Total Large-Cap Equity 73,563,551 24.9 25.0 20.0 30.0 -0.1 Total Small-Cap Equity 31,603,422 10.7 10.0 5.0 15.0 0.7 Total International Equity 54,316,668 18.4 18.0 13.0 23.0 0.4 Total Fixed Income 100,610,912 34.0 35.0 30.0 40.0 -1.0 Hedge Fund 1,252,584 0.4 0.0 0.0 0.0 0.4 Real Estate 32,566,168 11.0 12.0 7.0 17.0 -1.0 Cash Account 2,000,054 0.7 0.0 0.0 0.0 0.7 Target Allocation Actual Allocation Allocation Differences 0.0%10.0%20.0%30.0%40.0%50.0%-10.0 %-20.0 % Cash Account $2,000.1K Real Estate $32,566.2K Hedge Fund $1,252.6K Total Fixed Income $100,610.9K Total International Equity $54,316.7K Total Small-Cap Equity $31,603.4K Total Large-Cap Equity $73,563.6K 0.0% 12.0% 0.0% 35.0% 18.0% 10.0% 25.0% 0.7% 11.0% 0.4% 34.0% 18.4% 10.7% 24.9% 0.7% -1.0 % 0.4% -1.0 % 0.4% 0.7% -0.1 % Total Pension Asset Allocation Compliance As of December 31, 2019 Page 18 Total Domestic Equity Page 19 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years Current Allocation Total Domestic Equity Russell 3000 Index 0.0 15.0 30.0 45.0 Return1 Quarter 2019 1 Year 3 Years 5 Years Inception 9/1/13 9.1 31.0 31.0 14.6 11.2 13.2 9.1 30.6 30.6 13.8 10.5 12.3 December 31, 2019 : $105M TimesSquare Small Cap Growth:15.5% Kennedy Mid Cap Value:14.6% BlackRock Russell 1000 Index Fund Non-Lending:69.9% Total Domestic Equity Benchmark 0.93 0.96 0.99 1.02 1.05 1.08 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 12/19 0.97 Quarterly Out Performance Quarterly Under Performance 0.0% 2.0% 4.0% -2.0 % -4.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Total Domestic Equity Portfolio Overview As of December 31, 2019Total Domestic Equity Page 20 -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 2018 2017 2016 Total Domestic Equity 9.1 (24)30.6 (30)30.6 (30)13.8 (42)10.5 (47)-6.1 (50)20.1 (47)9.6 (94)¢ Russell 3000 Index 9.1 (27)31.0 (26)31.0 (26)14.6 (24)11.2 (22)-5.2 (26)21.1 (26)12.7 (48)˜ 5th Percentile 10.1 32.0 32.0 15.2 11.7 -4.0 23.7 15.8 1st Quartile 9.1 31.0 31.0 14.5 11.0 -5.2 21.1 13.8 Median 8.7 29.7 29.7 13.6 10.3 -6.1 20.0 12.6 3rd Quartile 7.9 27.5 27.5 12.7 9.6 -7.0 18.4 11.5 95th Percentile 6.6 23.6 23.6 10.7 7.6 -9.2 16.5 8.7 Population 73 67 67 63 61 68 89 92 Plan Sponsor Peer Group Analysis As of December 31, 2019 All Public Plans-US Equity Segment Parentheses contain percentile rankings. Page 21 Annualized Return vs. Annualized Standard Deviation 3 Years Rolling 3 Years Standard Deviation 3 Years Historical Statistics Total Domestic Equity Russell 3000 Index FTSE 3 Month T-Bill -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Return (%)0.0 3.0 6.0 9.0 12.0 15.0 18.0 Risk (Standard Deviation %) Total Domestic Equity Russell 3000 Index 0.0 3.0 6.0 9.0 12.0 15.0 18.0 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Total Domestic Equity -0.66 1.38 -0.48 0.99 0.96 -0.83 1.01 13.80 12.60 0.99 Russell 3000 Index 0.00 0.00 N/A 1.00 1.03 0.00 1.00 14.57 12.38 1.00 FTSE 3 Month T-Bill -12.80 12.40 -1.03 0.01 N/A 1.67 0.00 1.65 0.19 -0.09 Total Domestic Equity Risk Profile As of December 31, 2019Total Domestic Equity Page 22 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information BlackRock Russell 1000 Index Fund Non-Lending Russell 1000 Index 0.0 15.0 30.0 45.0 Return1 Quarter 2019 1 Year Inception 3/1/17 9.0 31.4 31.4 13.7 9.0 31.4 31.4 13.6 Account Name:BlackRock Russell 1000 Index Fund Non-Lending Inception Date:03/01/2017 Account Structure:Commingled Fund Asset Class:US Equity Benchmark:Russell 1000 Index Peer Group:IM U.S. Equity (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 0.1% 0.2% -0.1 % -0.2 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 BlackRock Russell 1000 Index Fund Non-Lending Benchmark 0.99 1.00 1.01 2/17 8/17 2/18 8/18 2/19 8/19 12/19 1.00 BlackRock Russell 1000 Index Fund Non-Lending Performance Summary As of December 31, 2019BlackRock Russell 1000 Index Fund Non-Lending Page 23 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 65.0 Return1 Quarter 2019 1 Year 2018 BlackRock Russell 1000 Index Fund Non-Lending 9.0 (31)31.4 (25)31.4 (25)-4.8 (29)¢ Russell 1000 Index 9.0 (31)31.4 (25)31.4 (25)-4.8 (29)˜ 5th Percentile 12.1 38.0 38.0 2.3 1st Quartile 9.4 31.4 31.4 -4.2 Median 8.1 27.6 27.6 -7.8 3rd Quartile 6.6 23.5 23.5 -12.3 95th Percentile 3.8 14.1 14.1 -18.5 Population 2,133 2,128 2,128 2,430 BlackRock Russell 1000 Index Fund Non-Lending Peer Group Analysis As of December 31, 2019 IM U.S. Equity (SA+CF) Parentheses contain percentile rankings. Page 24 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Kennedy Mid Cap Value Russell Midcap Value Index 0.0 15.0 30.0 45.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years Inception 2/1/08 6.4 27.1 27.1 8.1 7.6 12.4 9.08.4 28.6 28.6 9.0 7.5 12.2 10.0 Account Name:Kennedy Mid Cap Value Inception Date:01/02/2008 Account Structure:Commingled Fund Asset Class:US Equity Benchmark:Russell Midcap Value Index Peer Group:IM U.S. Equity (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 3.0% 6.0% -3.0 % -6.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Kennedy Mid Cap Value Benchmark 0.80 1.00 1.20 1.40 1/08 4/09 7/10 10/11 1/13 4/14 7/15 10/16 1/18 12/19 1.12 Kennedy Mid Cap Value Performance Summary As of December 31, 2019Kennedy Mid Cap Value Page 25 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 65.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Kennedy Mid Cap Value 8.4 (43)28.6 (44)28.6 (44)9.0 (65)7.5 (71)12.2 (52)-14.5 (86)18.0 (52)22.9 (14)¢ Russell Midcap Value Index 6.4 (79)27.1 (54)27.1 (54)8.1 (72)7.6 (69)12.4 (48)-12.3 (75)13.3 (77)20.0 (21)˜ 5th Percentile 12.1 38.0 38.0 21.7 14.3 15.5 2.3 31.8 29.1 1st Quartile 9.4 31.4 31.4 15.1 11.1 13.5 -4.2 23.2 18.7 Median 8.1 27.6 27.6 11.5 9.2 12.3 -7.8 18.3 12.2 3rd Quartile 6.6 23.5 23.5 7.7 7.2 11.1 -12.3 13.6 7.6 95th Percentile 3.8 14.1 14.1 2.2 3.7 8.6 -18.5 5.6 0.6 Population 2,133 2,128 2,128 2,076 1,993 1,693 2,430 2,540 2,678 Kennedy Mid Cap Value Peer Group Analysis As of December 31, 2019 IM U.S. Equity (SA+CF) Parentheses contain percentile rankings. Page 26 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Kennedy Mid Cap Value Russell Midcap Value Index FTSE 3 Month T-Bill -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Return (%)0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 Risk (Standard Deviation %) Kennedy Mid Cap Value Russell Midcap Value Index 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Kennedy Mid Cap Value 0.02 3.16 0.01 0.95 0.52 -0.39 1.05 7.50 13.61 0.97 Russell Midcap Value Index 0.00 0.00 N/A 1.00 0.56 0.00 1.00 7.62 12.62 1.00 FTSE 3 Month T-Bill -7.10 12.62 -0.56 0.00 N/A 1.05 0.00 1.05 0.26 0.01 Kennedy Mid Cap Value Risk Profile As of December 31, 2019Kennedy Mid Cap Value Page 27 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information TimesSquare Small Cap Growth Russell 2000 Growth Index 0.0 15.0 30.0 45.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years Inception 2/1/02 11.4 28.5 28.5 12.5 9.3 13.0 8.610.2 28.2 28.2 14.2 10.3 13.2 10.5 Account Name:TimesSquare Small Cap Growth Inception Date:02/01/2002 Account Structure:Mutual Fund Asset Class:US Equity Benchmark:Russell 2000 Growth Index Peer Group:IM U.S. Equity (MF) Quarterly Out Performance Quarterly Under Performance 0.0% 4.0% 8.0% -4.0 % -8.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 TimesSquare Small Cap Growth Benchmark 0.80 1.00 1.20 1.40 1.60 1.80 1/02 10/03 7/05 4/07 1/09 10/10 7/12 4/14 1/16 10/17 12/19 1.36 TimesSquare Small Cap Growth Performance Summary As of December 31, 2019TimesSquare Small Cap Growth Page 28 -55.0 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 65.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 TimesSquare Small Cap Growth 10.2 (18)28.2 (46)28.2 (46)14.2 (33)10.3 (32)13.2 (25)-4.2 (27)21.1 (36)8.4 (63)¢ Russell 2000 Growth Index 11.4 (11)28.5 (44)28.5 (44)12.5 (42)9.3 (43)13.0 (28)-9.3 (61)22.2 (30)11.3 (51)˜ 5th Percentile 13.5 39.5 39.5 22.0 14.7 15.7 3.1 34.5 29.1 1st Quartile 9.5 31.6 31.6 15.3 11.0 13.2 -3.8 23.7 17.4 Median 7.9 27.4 27.4 11.0 8.7 11.7 -7.5 17.8 11.3 3rd Quartile 6.1 22.8 22.8 7.3 6.4 10.3 -12.2 12.2 5.6 95th Percentile -0.4 6.5 6.5 -1.4 -2.0 1.6 -19.6 -0.8 -3.6 Population 9,114 8,957 8,957 7,985 6,951 4,963 9,122 8,787 8,220 TimesSquare Small Cap Growth Peer Group Analysis As of December 31, 2019 IM U.S. Equity (MF) Parentheses contain percentile rankings. Page 29 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics TimesSquare Small Cap Growth Russell 2000 Growth Index FTSE 3 Month T-Bill -3.0 0.0 3.0 6.0 9.0 12.0 15.0 Return (%)0.0 4.0 8.0 12.0 16.0 20.0 24.0 Risk (Standard Deviation %) TimesSquare Small Cap Growth Russell 2000 Growth Index 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation TimesSquare Small Cap Growth 0.65 4.43 0.15 0.93 0.63 1.69 0.90 10.26 15.77 0.97 Russell 2000 Growth Index 0.00 0.00 N/A 1.00 0.55 0.00 1.00 9.34 16.90 1.00 FTSE 3 Month T-Bill -9.35 16.90 -0.55 0.00 N/A 1.05 0.00 1.05 0.26 0.00 TimesSquare Small Cap Growth Risk Profile As of December 31, 2019TimesSquare Small Cap Growth Page 30 Asset Allocation As of 11/30/2019 0.0%50.0%100.0%150.0%-50.0 % Fixed Income Convertibles Other Cash Equities -1.3 % 0.0% 0.7% 6.5% 94.0% Fund Characteristics As of 11/30/2019 Total Securities 105 Avg. Market Cap $3,116.93 Million P/E 41.25 P/B 6.53 Div. Yield 1.50% Annual EPS 20.19 5Yr EPS 19.78 3Yr EPS Growth 28.84 Top Ten Securities As of 11/30/2019 Paylocity Holding Corp ORD 2.51 % Addus Homecare Corp ORD 1.90 % Rexnord Corp ORD 1.89 % TriNet Group Inc ORD 1.89 % j2 Global Inc ORD 1.89 % Strategic Education Inc ORD 1.81 % Envestnet Inc ORD 1.70 % Focus Financial Partners Inc ORD 1.67 % Kennedy-Wilson Holdings Inc ORD 1.56 % Exlservice Holdings Inc ORD 1.54 % Sector/Quality Allocation As of 11/30/2019 0.0%15.0%30.0%45.0% Industrials Information Technology Health Care Consumer Discretionary Financials Non Classified Equity Consumer Staples Telecommunication Services Energy Materials 27.8% 20.6% 14.0% 13.7% 11.0% 3.2% 1.4% 1.1% 0.6% 0.5% TimesSquare Small Cap Growth Mutual Fund Attributes As of December 31, 2019 Page 31 This Page Left Blank Intentionally Page 32 Total International Equity Page 33 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years Current Allocation Total International Equity MSCI AC World ex USA Index (Net) 0.0 8.0 16.0 24.0 32.0 Return1 Quarter 2019 1 Year 3 Years 5 Years Inception 9/1/13 8.9 21.5 21.5 9.9 5.5 5.6 8.7 20.2 20.2 9.5 5.2 5.0 December 31, 2019 : $54M Morgan Stanley Emerging Markets Fund:34.3% Morgan Stanley International Equity:65.7% Total International Equity Benchmark 0.96 1.00 1.04 1.08 1.12 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 12/19 0.99 Quarterly Out Performance Quarterly Under Performance 0.0% 3.0% 6.0% -3.0 % -6.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Total International Equity Portfolio Overview As of December 31, 2019Total International Equity Page 34 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 65.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 2018 2017 2016 Total International Equity 8.7 (74)20.2 (88)20.2 (88)9.5 (84)5.2 (94)-14.6 (60)28.0 (52)0.3 (93)¢ MSCI AC World ex USA Index (Net)8.9 (65)21.5 (81)21.5 (81)9.9 (70)5.5 (82)-14.2 (52)27.2 (66)4.5 (33)˜ 5th Percentile 11.8 30.9 30.9 12.6 7.4 -11.1 32.6 8.3 1st Quartile 10.2 25.3 25.3 11.3 6.7 -13.5 29.4 5.1 Median 9.5 23.2 23.2 10.5 6.1 -14.1 28.1 3.5 3rd Quartile 8.7 21.9 21.9 9.7 5.6 -15.1 26.0 2.5 95th Percentile 7.5 19.7 19.7 9.1 4.8 -17.1 22.4 -0.9 Population 70 66 66 64 61 70 84 88 Plan Sponsor Peer Group Analysis As of December 31, 2019 All Public Plans-Intl. Equity Segment Parentheses contain percentile rankings. Page 35 Annualized Return vs. Annualized Standard Deviation 3 Years Rolling 3 Years Standard Deviation 3 Years Historical Statistics Total International Equity MSCI AC World ex USA Index (Net) FTSE 3 Month T-Bill -3.0 0.0 3.0 6.0 9.0 12.0 15.0 Return (%)0.0 3.0 6.0 9.0 12.0 15.0 18.0 Risk (Standard Deviation %) Total International Equity MSCI AC World ex USA Index (Net) 0.0 3.0 6.0 9.0 12.0 15.0 18.0 3/17 9/17 3/18 9/18 3/19 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Total International Equity -0.33 3.07 -0.11 0.93 0.72 0.23 0.94 9.53 11.27 0.96 MSCI AC World ex USA Index (Net)0.00 0.00 N/A 1.00 0.73 0.00 1.00 9.87 11.51 1.00 FTSE 3 Month T-Bill -8.45 11.55 -0.73 0.06 N/A 1.69 0.00 1.65 0.19 -0.24 Total International Equity Risk Profile As of December 31, 2019Total International Equity Page 36 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Morgan Stanley International Equity MSCI EAFE Index (Net) 0.0 8.0 16.0 24.0 32.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years Inception 4/1/05 8.2 22.0 22.0 9.6 5.7 5.5 4.9 7.4 20.4 20.4 9.1 5.1 5.4 4.7 Account Name:Morgan Stanley International Equity Inception Date:04/01/2005 Account Structure:Mutual Fund Asset Class:International Equity Benchmark:MSCI EAFE Index (Net) Peer Group:IM International Equity (MF) Quarterly Out Performance Quarterly Under Performance 0.0% 3.0% 6.0% -3.0 % -6.0 % -9.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Morgan Stanley International Equity Benchmark 0.72 0.81 0.90 0.99 1.08 1.17 3/05 9/06 3/08 9/09 3/11 9/12 3/14 9/15 3/17 9/18 12/19 0.97 Morgan Stanley International Equity Performance Summary As of December 31, 2019Morgan Stanley International Equity Page 37 -60.0 -40.0 -20.0 0.0 20.0 40.0 60.0 80.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Morgan Stanley International Equity 7.4 (83)20.4 (61)20.4 (61)9.1 (61)5.1 (63)5.4 (50)-13.8 (31)25.2 (73)-2.0 (82)¢ MSCI EAFE Index (Net)8.2 (72)22.0 (48)22.0 (48)9.6 (54)5.7 (50)5.5 (48)-13.8 (31)25.0 (74)1.0 (64)˜ 5th Percentile 14.0 33.0 33.0 16.3 10.0 9.6 -7.6 47.1 18.3 1st Quartile 11.3 26.2 26.2 12.0 7.2 6.8 -12.9 35.6 8.1 Median 9.6 21.8 21.8 9.8 5.7 5.4 -15.7 28.6 2.8 3rd Quartile 7.9 18.0 18.0 8.1 4.3 4.1 -18.5 24.9 -0.8 95th Percentile 4.6 8.3 8.3 4.3 0.9 1.1 -23.5 16.7 -6.8 Population 832 832 832 832 832 433 881 903 903 Morgan Stanley International Equity Peer Group Analysis As of December 31, 2019 IM International Equity (MF) Parentheses contain percentile rankings. Page 38 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Morgan Stanley International Equity MSCI EAFE Index (Net) FTSE 3 Month T-Bill -1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0 Return (%)0.0 3.0 6.0 9.0 12.0 15.0 18.0 Risk (Standard Deviation %) Morgan Stanley International Equity MSCI EAFE Index (Net) 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Morgan Stanley International Equity -0.63 4.18 -0.15 0.88 0.39 -0.04 0.91 5.06 11.78 0.94 MSCI EAFE Index (Net)0.00 0.00 N/A 1.00 0.43 0.00 1.00 5.67 12.23 1.00 FTSE 3 Month T-Bill -5.22 12.24 -0.43 0.00 N/A 1.05 0.00 1.05 0.26 0.00 Morgan Stanley International Equity Risk Profile As of December 31, 2019Morgan Stanley International Equity Page 39 Asset Allocation As of 11/30/2019 0.0%50.0%100.0%150.0% Other Convertibles Cash Fixed Income Equities 0.0% 0.0% 1.1% 1.5% 97.4% Fund Characteristics As of 11/30/2019 Total Securities 66 Avg. Market Cap $80,596.24 Million P/E 25.39 P/B 4.46 Div. Yield 2.97% Annual EPS 4.10 5Yr EPS 7.92 3Yr EPS Growth 8.67 Top Ten Securities As of 11/30/2019 Reckitt Benckiser Group PLC ORD 4.13 % Henkel AG & Co KGaA PFD 3.57 % SAP SE ORD 3.53 % GlaxoSmithKline PLC ORD 3.42 % Fresenius SE & Co KGaA ORD 3.33 % Safran SA ORD 3.17 % Constellation Software Inc ORD 3.07 % Relx PLC ORD 3.07 % Sanofi SA ORD 3.04 % Pernod Ricard SA ORD 2.95 % Sector/Quality Allocation As of 11/30/2019 0.0%15.0%30.0%45.0% Consumer Staples Health Care Financials Industrials Information Technology Energy Consumer Discretionary Materials 28.9% 18.4% 15.5% 12.4% 11.5% 3.8% 3.7% 3.3% Morgan Stanley International Equity Mutual Fund Attributes As of December 31, 2019 Page 40 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Morgan Stanley Emerging Markets Fund MSCI Emerging Markets Index (Net) 0.0 8.0 16.0 24.0 32.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years Inception 4/1/05 11.8 18.4 18.4 11.6 5.6 3.7 7.5 11.1 19.5 19.5 10.1 5.0 3.5 6.9 Account Name:Morgan Stanley Emerging Markets Fund Inception Date:04/01/2005 Account Structure:Mutual Fund Asset Class:International Equity Benchmark:MSCI Emerging Markets Index (Net) Peer Group:IM Emerging Markets Equity (MF) Quarterly Out Performance Quarterly Under Performance 0.0% 4.0% 8.0% -4.0 % -8.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Morgan Stanley Emerging Markets Fund Benchmark 0.81 0.90 0.99 1.08 1.17 3/05 9/06 3/08 9/09 3/11 9/12 3/14 9/15 3/17 9/18 12/19 0.93 Morgan Stanley Emerging Markets Fund Performance Summary As of December 31, 2019Morgan Stanley Emerging Markets Fund Page 41 -55.0 -40.0 -25.0 -10.0 5.0 20.0 35.0 50.0 65.0 80.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Morgan Stanley Emerging Markets Fund 11.1 (47)19.5 (50)19.5 (50)10.1 (59)5.0 (55)3.5 (53)-17.3 (62)35.0 (51)6.7 (62)¢ MSCI Emerging Markets Index (Net)11.8 (32)18.4 (57)18.4 (57)11.6 (37)5.6 (39)3.7 (48)-14.6 (34)37.3 (38)11.2 (37)˜ 5th Percentile 14.3 31.2 31.2 16.2 8.6 6.7 -8.6 46.6 25.5 1st Quartile 12.1 24.5 24.5 12.6 6.6 5.0 -13.5 39.6 12.7 Median 10.9 19.4 19.4 10.5 5.1 3.6 -16.0 35.0 9.3 3rd Quartile 9.2 15.2 15.2 8.4 3.3 2.6 -18.7 28.4 4.4 95th Percentile 3.9 6.1 6.1 3.3 -0.9 0.6 -23.1 19.7 -3.7 Population 220 220 220 220 220 85 233 240 240 Morgan Stanley Emerging Markets Fund Peer Group Analysis As of December 31, 2019 IM Emerging Markets Equity (MF) Parentheses contain percentile rankings. Page 42 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Morgan Stanley Emerging Markets Fund MSCI Emerging Markets Index (Net) FTSE 3 Month T-Bill -1.5 0.0 1.5 3.0 4.5 6.0 7.5 9.0 Return (%)0.0 4.0 8.0 12.0 16.0 20.0 24.0 Risk (Standard Deviation %) Morgan Stanley Emerging Markets Fund MSCI Emerging Markets Index (Net) 0.0 6.0 12.0 18.0 24.0 30.0 36.0 42.0 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Morgan Stanley Emerging Markets Fund -0.82 3.98 -0.21 0.94 0.34 0.06 0.87 5.00 14.13 0.97 MSCI Emerging Markets Index (Net)0.00 0.00 N/A 1.00 0.36 0.00 1.00 5.61 15.79 1.00 FTSE 3 Month T-Bill -5.65 15.79 -0.36 0.00 N/A 1.05 0.00 1.05 0.26 0.00 Morgan Stanley Emerging Markets Fund Risk Profile As of December 31, 2019Morgan Stanley Emerging Markets Fund Page 43 Asset Allocation As of 11/30/2019 0.0%50.0%100.0%150.0% Other Convertibles Cash Fixed Income Equities 0.0% 0.0% 0.8% 1.0% 98.3% Fund Characteristics As of 11/30/2019 Total Securities 123 Avg. Market Cap $99,443.75 Million P/E 24.96 P/B 4.34 Div. Yield 2.91% Annual EPS 16.79 5Yr EPS 14.37 3Yr EPS Growth 14.53 Top Ten Securities As of 11/30/2019 Taiwan Semiconductor Manufacturing 5.53 % Alibaba Group Holding Ltd DR 4.58 % Tencent Holdings Ltd ORD 4.51 % Bank Central Asia Tbk PT ORD 2.15 % Morgan Stanley Inst Liq Govt Port;Instit 2.02 % Samsung Electronics Co Ltd ORD 2.01 % China Construction Bank Corp ORD 1.69 % B3 SA Brasil Bolsa Balcao ORD 1.51 % OTP Bank Nyrt ORD 1.48 % Itau Unibanco Holding SA PFD 1.45 % Sector/Quality Allocation As of 11/30/2019 0.0%15.0%30.0%45.0%60.0% Financials Information Technology Consumer Discretionary Consumer Staples Industrials Health Care Energy Materials Telecommunication Services Utilities 33.6% 16.9% 15.6% 12.0% 5.7% 4.8% 4.2% 2.8% 2.0% 0.7% Morgan Stanley Emerging Markets Fund Mutual Fund Attributes As of December 31, 2019 Page 44 Total Fixed Income Page 45 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years Current Allocation Total Fixed Income Blmbg. Barc. Intermed. U.S. Government/Credit 0.0 4.0 8.0 12.0 16.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years Inception 7/1/03 0.4 6.8 6.8 3.2 2.6 3.1 3.4 1.2 9.1 9.1 4.7 3.2 4.0 4.4 December 31, 2019 : $101M Income Research:39.1% Brandywine Global Opportunistic Fixed Income:24.2% Prudential Core Plus Bond:36.7% Total Fixed Income Benchmark 0.96 1.00 1.04 1.08 1.12 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 12/18 6/19 12/19 1.03 Quarterly Out Performance Quarterly Under Performance 0.0% 2.0% 4.0% -2.0 % -4.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Total Fixed Income Portfolio Overview As of December 31, 2019Total Fixed Income Page 46 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Total Fixed Income 1.2 (8)9.1 (47)9.1 (47)4.7 (28)3.2 (58)4.0 (64)-1.0 (70)6.3 (14)4.2 (54)¢ Blmbg. Barc. Intermed. U.S. Government/Credit 0.4 (58)6.8 (81)6.8 (81)3.2 (82)2.6 (81)3.1 (86)0.9 (9)2.1 (89)2.1 (86)˜ 5th Percentile 1.2 11.6 11.6 5.6 4.8 6.5 1.3 7.3 8.2 1st Quartile 0.7 10.0 10.0 4.7 4.0 5.0 0.2 5.5 6.1 Median 0.5 8.9 8.9 4.2 3.3 4.3 -0.5 4.3 4.3 3rd Quartile 0.1 7.5 7.5 3.6 2.8 3.4 -1.2 3.1 2.7 95th Percentile -0.9 5.6 5.6 2.2 1.4 1.9 -4.1 2.0 0.9 Population 74 70 70 68 67 45 74 85 92 Plan Sponsor Peer Group Analysis As of December 31, 2019 All Public Plans-US Fixed Income Segment Parentheses contain percentile rankings. Page 47 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Total Fixed Income Blmbg. Barc. Intermed. U.S. Government/Credit FTSE 3 Month T-Bill 0.0 0.8 1.6 2.4 3.2 4.0 Return (%)0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 Risk (Standard Deviation %) Total Fixed Income Blmbg. Barc. Intermed. U.S. Government/Credit 0.0 2.0 4.0 6.0 8.0 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Total Fixed Income 0.64 2.19 0.29 0.59 0.65 0.22 1.17 3.20 3.39 0.77 Blmbg. Barc. Intermed. U.S. Government/Credit 0.00 0.00 N/A 1.00 0.69 0.00 1.00 2.57 2.24 1.00 FTSE 3 Month T-Bill -1.52 2.20 -0.69 0.05 N/A 0.98 0.03 1.05 0.26 0.22 Total Fixed Income Risk Profile As of December 31, 2019Total Fixed Income Page 48 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Income Research Blmbg. Barc. Intermed. U.S. Government/Credit 0.0 3.0 6.0 9.0 12.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years Inception 7/1/01 0.4 6.8 6.8 3.2 2.6 3.1 4.1 0.2 6.7 6.7 3.2 2.5 3.3 4.6 Account Name:Income Research Inception Date:07/01/2001 Account Structure:Commingled Fund Asset Class:US Fixed Income Benchmark:Blmbg. Barc. Intermed. U.S. Government/Credit Peer Group:IM U.S. Intermediate Duration (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 0.3% 0.6% -0.3 % -0.6 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Income Research Benchmark 0.96 1.02 1.08 1.14 1.20 6/01 3/03 12/04 9/06 6/08 3/10 12/11 9/13 6/15 3/17 12/19 1.09 Income Research Performance Summary As of December 31, 2019Income Research Page 49 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Income Research 0.2 (87)6.7 (43)6.7 (43)3.2 (40)2.5 (46)3.3 (34)0.8 (32)2.0 (67)2.3 (38)¢ Blmbg. Barc. Intermed. U.S. Government/Credit 0.4 (47)6.8 (36)6.8 (36)3.2 (34)2.6 (39)3.1 (48)0.9 (28)2.1 (55)2.1 (47)˜ 5th Percentile 0.8 8.3 8.3 4.2 3.4 4.4 1.4 4.2 4.2 1st Quartile 0.5 7.0 7.0 3.3 2.7 3.3 0.9 2.7 2.8 Median 0.3 6.6 6.6 3.1 2.5 3.0 0.6 2.2 2.0 3rd Quartile 0.3 5.9 5.9 2.9 2.3 2.8 0.4 1.9 1.7 95th Percentile 0.1 5.0 5.0 2.5 2.0 2.3 -0.2 1.4 1.2 Population 158 158 158 155 153 135 167 172 181 Income Research Peer Group Analysis As of December 31, 2019 IM U.S. Intermediate Duration (SA+CF) Parentheses contain percentile rankings. Page 50 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Income Research Blmbg. Barc. Intermed. U.S. Government/Credit FTSE 3 Month T-Bill 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Return (%)0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 Risk (Standard Deviation %) Income Research Blmbg. Barc. Intermed. U.S. Government/Credit 0.0 0.9 1.8 2.7 3.6 4.5 5.4 6.3 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Income Research -0.05 0.35 -0.13 0.98 0.71 0.12 0.94 2.53 2.12 0.99 Blmbg. Barc. Intermed. U.S. Government/Credit 0.00 0.00 N/A 1.00 0.69 0.00 1.00 2.57 2.24 1.00 FTSE 3 Month T-Bill -1.52 2.20 -0.69 0.05 N/A 0.98 0.03 1.05 0.26 0.22 Income Research Risk Profile As of December 31, 2019Income Research Page 51 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Prudential Core Plus Bond Blmbg. Barc. U.S. Aggregate 0.0 5.0 10.0 15.0 20.0 Return1 Quarter 2019 1 Year 3 Years Inception 6/1/15 0.2 8.7 8.7 4.0 3.1 0.4 11.3 11.3 5.7 4.6 Account Name:Prudential Core Plus Bond Inception Date:06/01/2015 Account Structure:Commingled Fund Asset Class:US Fixed Income Benchmark:Blmbg. Barc. U.S. Aggregate Peer Group:IM U.S. Broad Market Core+ Fixed Income (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 0.8% 1.6% 2.4% -0.8 % -1.6 % 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Prudential Core Plus Bond Benchmark 0.90 0.95 1.00 1.05 1.10 1.15 5/15 11/15 5/16 11/16 5/17 11/17 5/18 11/18 5/19 12/19 1.07 Prudential Core Plus Bond Performance Summary As of December 31, 2019Prudential Core Plus Bond Page 52 -12.0 -8.0 -4.0 0.0 4.0 8.0 12.0 16.0 20.0 Return1 Quarter 2019 1 Year 3 Years 2018 2017 2016 Prudential Core Plus Bond 0.4 (49)11.3 (15)11.3 (15)5.7 (8)-0.4 (44)6.6 (12)5.8 (26)¢ Blmbg. Barc. U.S. Aggregate 0.2 (79)8.7 (83)8.7 (83)4.0 (81)0.0 (17)3.5 (85)2.6 (92)˜ 5th Percentile 2.0 13.5 13.5 5.8 0.8 7.5 10.0 1st Quartile 0.8 10.6 10.6 4.8 -0.2 5.3 5.8 Median 0.4 9.6 9.6 4.4 -0.7 4.5 4.4 3rd Quartile 0.2 8.9 8.9 4.1 -1.2 3.8 3.3 95th Percentile -0.1 7.2 7.2 3.5 -2.8 3.1 2.4 Population 147 147 147 144 161 166 169 Prudential Core Plus Bond Peer Group Analysis As of December 31, 2019 IM U.S. Broad Market Core+ Fixed Income (SA+CF) Parentheses contain percentile rankings. Page 53 Annualized Return vs. Annualized Standard Deviation 3 Years Rolling 3 Years Standard Deviation 3 Years Historical Statistics Prudential Core Plus Bond Blmbg. Barc. U.S. Aggregate FTSE 3 Month T-Bill 0.0 1.5 3.0 4.5 6.0 7.5 Return (%)0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 Risk (Standard Deviation %) Prudential Core Plus Bond Blmbg. Barc. U.S. Aggregate 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Prudential Core Plus Bond 1.61 0.70 2.31 0.95 1.31 1.53 1.02 5.71 3.06 0.97 Blmbg. Barc. U.S. Aggregate 0.00 0.00 N/A 1.00 0.82 0.00 1.00 4.03 2.91 1.00 FTSE 3 Month T-Bill -2.36 2.86 -0.82 0.08 N/A 1.57 0.02 1.65 0.19 0.29 Prudential Core Plus Bond Risk Profile As of December 31, 2019Prudential Core Plus Bond Page 54 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information Brandywine Global Opportunistic Fixed Income FTSE World Government Bond Index 0.0 5.0 10.0 15.0 -5.0Return 1 Quarter 2019 1 Year 3 Years 5 Years 10 Years Inception 1/1/05 -0.4 5.9 5.9 4.1 2.0 1.9 2.7 4.2 9.3 9.3 5.3 2.4 4.9 5.1 Account Name:Brandywine Global Opportunistic Fixed Income Inception Date:01/01/2005 Account Structure:Commingled Fund Asset Class:International Fixed Income Benchmark:FTSE World Government Bond Index Peer Group:IM Global Fixed Income (SA+CF) Quarterly Out Performance Quarterly Under Performance 0.0% 5.0% 10.0% -5.0 % -10.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 Brandywine Global Opportunistic Fixed Income Benchmark 0.60 0.90 1.20 1.50 1.80 12/04 6/06 12/07 6/09 12/10 6/12 12/13 6/15 12/16 6/18 12/19 1.42 Brandywine Global Opportunistic Fixed Income Performance Summary As of December 31, 2019Brandywine Global Opportunistic Fixed Income Page 55 -22.0 -16.0 -10.0 -4.0 2.0 8.0 14.0 20.0 26.0 Return1 Quarter 2019 1 Year 3 Years 5 Years 10 Years 2018 2017 2016 Brandywine Global Opportunistic Fixed Income 4.2 (11)9.3 (48)9.3 (48)5.3 (36)2.4 (69)4.9 (29)-5.2 (90)12.8 (4)5.2 (54)¢ FTSE World Government Bond Index -0.4 (96)5.9 (88)5.9 (88)4.1 (71)2.0 (78)1.9 (93)-0.8 (26)7.5 (44)1.6 (86)˜ 5th Percentile 5.0 15.6 15.6 7.1 6.6 7.5 1.5 11.8 15.9 1st Quartile 2.7 12.7 12.7 5.9 4.9 5.1 -0.8 8.8 10.0 Median 1.5 9.0 9.0 4.9 3.3 3.7 -2.1 7.2 5.4 3rd Quartile 0.6 7.6 7.6 4.0 2.1 2.6 -3.9 4.9 2.8 95th Percentile -0.3 4.3 4.3 0.8 -0.2 0.9 -8.4 2.2 -0.4 Population 209 207 207 203 192 118 242 251 265 Brandywine Global Opportunistic Fixed Income Peer Group Analysis As of December 31, 2019 IM Global Fixed Income (SA+CF) Parentheses contain percentile rankings. Page 56 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics Brandywine Global Opportunistic Fixed Income FTSE World Government Bond Index FTSE 3 Month T-Bill 0.5 1.0 1.5 2.0 2.5 3.0 Return (%)0.0 2.0 4.0 6.0 8.0 10.0 12.0 Risk (Standard Deviation %) Brandywine Global Opportunistic Fixed Income FTSE World Government Bond Index 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation Brandywine Global Opportunistic Fixed Income 0.52 5.36 0.10 0.52 0.21 0.44 1.04 2.41 7.72 0.72 FTSE World Government Bond Index 0.00 0.00 N/A 1.00 0.21 0.00 1.00 2.03 5.35 1.00 FTSE 3 Month T-Bill -1.11 5.33 -0.21 0.01 N/A 1.04 0.00 1.05 0.26 0.10 Brandywine Global Opportunistic Fixed Income Risk Profile As of December 31, 2019Brandywine Global Opportunistic Fixed Income Page 57 This Page Left Blank Intentionally Page 58 Real Estate Page 59 Return Summary Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception Account Information UBS Trumbull Property Fund NCREIF Property Index 0.0 6.0 12.0 18.0 -6.0 -12.0Return 1 Quarter 2019 1 Year 3 Years 5 Years 10 Years Inception 6/1/06 1.5 6.4 6.4 6.7 8.2 10.2 7.5 -0.2 -3.0 -3.0 2.7 5.1 8.2 5.1 Account Name:UBS Trumbull Property Fund Inception Date:06/01/2006 Account Structure:Commingled Fund Asset Class:US Private Real Estate Benchmark:NCREIF Property Index Peer Group: Quarterly Out Performance Quarterly Under Performance 0.0% 3.0% -3.0 % -6.0 % -9.0 % 3/15 9/15 3/16 9/16 3/17 9/17 3/18 9/18 3/19 12/19 UBS Trumbull Property Fund Benchmark 0.60 0.80 1.00 1.20 5/06 8/07 11/08 2/10 5/11 8/12 11/13 2/15 5/16 8/17 11/18 12/19 0.73 UBS Trumbull Property Fund Performance Summary As of December 31, 2019UBS Trumbull Property Fund Page 60 Annualized Return vs. Annualized Standard Deviation 5 Years Rolling 5 Years Standard Deviation 5 Years Historical Statistics UBS Trumbull Property Fund NCREIF Property Index FTSE 3 Month T-Bill -2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Return (%)0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 Risk (Standard Deviation %) UBS Trumbull Property Fund NCREIF Property Index 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 6/11 6/12 6/13 6/14 6/15 6/16 6/17 6/18 12/19 Active Return Tracking Error Information Ratio R-Squared Sharpe Ratio Alpha Beta Return Standard Deviation Actual Correlation UBS Trumbull Property Fund -2.97 2.39 -1.24 0.36 1.23 -5.81 1.37 5.10 2.93 0.60 NCREIF Property Index 0.00 0.00 N/A 1.00 4.27 0.00 1.00 8.25 1.28 1.00 FTSE 3 Month T-Bill -6.97 1.63 -4.27 0.47 N/A 3.04 -0.24 1.05 0.46 -0.69 UBS Trumbull Property Fund Risk Profile As of December 31, 2019UBS Trumbull Property Fund Page 61 This Page Left Blank Intentionally Page 62 Market Environment Page 63 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 9.0%9.2%8.9% 11.4% 7.7% 5.6%7.3%9.0% 5.7% 11.6% 26.4% 21.6% 30.4% 23.2% 19.6% 27.9% 21.5% 25.0% 18.3%17.6% 0% 5% 10% 15% 20% 25% 30% 35% ACWI IMI 45.1% ACWI ex-U.S. IMI 54.9% USA IMI 5.0% UK IMI 7.6% Ja pa n IMI 3.0% Ca na da IMI 0.2% Isra el IMI 13.6% Europe ex-UK IMI 3.6% Pacific ex-Japan IMI 12.0% Emergi ng Ma rkets IMI GLOBAL MSCI IMI INDEX RETURNS (US D) AS OF 12/31/2019 Fourth Quarte r 2019 One-Year Source: MSCI Global Equity Markets The announcement of a “phase one” U.S.-China trade deal, progress on the U.S.-Mexico-Canada agreement (USMCA) and easing Brexit fears led to a resurgence in risk appetite and boosted equity markets. Accommodative monetary policies from major central banks meanwhile continue to provide further support for risk assets. In local currency terms, the MSCI AC World Investable Market Index returned 7.8% in Q4 2019 and the depreciation of the U.S. dollar provided an additional boost to 9.0% in USD terms. Previous laggards in terms of 2019 performance, Emerging Markets (EM) equities, were the strongest performers (11.6%) over the quarter benefiting from the “risk-on” environment and the thawing of trade tensions. With the exception of Indian equities, all other major EM regions delivered double-digit returns. This did, however, come against a backdrop where China recorded the slowest economic growth rate in nearly 30 years as their economy expanded by 6.0% year-on-year in the third quarter. Canadian equities markets returned the least with a still respectable quarterly return of 5.6% in USD-terms. Canadian Prime Minister Justin Trudeau’s Liberal party retained power after winning general election but fell short of a majority. Page 64 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. US A 54.9% UK 5.0% Ca nada 3.0% Pa cific ex -Japan 3.6%Japan 7.6% Eu rope ex -UK 13.6% Is rael 0.2% Latin Americ a 1.4% Asia 8.8% Ea stern Eu rope, Mi ddle Ea st & Africa 1.8% Emer ging Ma rkets 12.0% MSCI ALL COUNTRY WORLD IMI INDEX GEOGRAP HI C ALLOCATION AS OF 12/31/2019 Sour ce:MSCI Global Equity Markets The two exhibits on this slide illustrate the percentage that each country/region represents of the global and international equity markets as measured by the MSCI All Country World IMI Index and the MSCI All Country World ex-U.S. IMI Index, respectively. UK 11.2% Canada 6.7% Pacifi c ex-Japan 7.9% Japan 16.9% Europe ex -UK 30.2% Is rael 0.5% Lat in America 3.1% Asia 19.5% Eastern Europe, Middle East & Africa 4.0% Emerging Mark et s 26.6% MS CI ALL COUNTRY WORLD EX-U.S. IMI INDEX GEOGRAPHIC AL LOCATION AS OF 12/31/2019 Sourc e:MS CI Page 65 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 9.1% 14.3%14.9% 6.3%4.7%5.7%7.0%6.4%7.6% 1.5% 31.0% 46.7% 22.1% 28.7% 23.8% 9.6% 27.1% 30.7%32.9% 25.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Russell 3000 21.4% Te ch nology 13.9% Healthcare 14.4% Cons . Disc 5.7% Cons. Staples 5.1% Energy 3.4% Mater ia ls & Processi ng 10.5% Produ ce r Dur ables 20.4% Fi nancial Serv ices 5.1% Utiliti es RUS SELL GI CS SECTOR RET URNS AS OF 12/31/2019 Fourth Quarte r 2019 One-Year Source: Rus sell Indexes 9.1%8.0% 11.3% 6.4% 8.2%8.5% 11.4% 31.0% 26.4% 36.5% 27.1% 35.5% 22.4% 28.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Russell 3000 30.1% Large Value 38.1% Large Gr owth 15.2% Medium Value 10.0% Medium Gr owth 3.2% Small Value 3.3% Small Gr owth RUS SELL STYL E RETURNS AS OF 12/31/2019 Fourth Quarte r 2019 On e-Year Source: Rus sell Indexes U.S. Equity Markets Three major U.S. equity indices (S&P 500, Dow Jones Industrial Average and Nasdaq Composite) touched record highs over the quarter; the truce in the U.S.-China trade war providing a significant tailwind. The Russell 3000 Index rose 9.1% during the fourth quarter and 31.0% over the one-year period. Healthcare (14.9%) and Technology (14.3%) were the best performers over the quarter. The former benefited from the falling popularity of Democratic Presidential candidate Elizabeth Warren whom advocated significant healthcare reform which has previously been a headwind for pharmaceuticals. As economic data stabilized over the quarter, more defensive sectors underperformed with Utilities (1.5%) and Consumer Staples (4.7%) the worst performing sectors. Performance was positive across the market capitalization spectrum over the quarter. Small cap stocks outperformed both large and medium cap stocks over the quarter. Growth stocks outperformed their Value counterparts in Q4 2019 and over the last year. Page 66 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 0.2% -0.8% 1.2%0.7%0.4% -0.3% 8.7% 6.8% 14.5% 6.4% 4.5% 8.3% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Bar clays Agg. Bon d 42.8% Govt 26.3% Corp. 28.3% MBS 0.5% ABS 2.2% CMBS BL OOM BERG BARCLAYS AGGREG ATE RETURNS BY SECTOR AS OF 12/31/2019 Four th Quarte r 2019 One-YearSource: FactSet 0.6%0.5%0.5% 0.0%-1.1% 4.0% 6.3%7.3% 9.8% 19.6% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 1-3 Y r.3-5 Y r.5-7 Y r.7-10 Yr.>10 Yr. BL OOM BERG BARCLAYS AGGREG ATE RET URNS BY MATURI TY A S OF 12/31/2019 Fourth Quarte r 2019 On e-YearSource: Fac tSet -0.2%0.0% 0.7%1.7%2.6% 6.7% 9.5% 13.0% 16.4% 14.3% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Aaa Aa A Baa High Yield BL OOM BERG BARCLAYS AGGREG ATE RETURNS BY QUALITY AND HI GH YIELD RET URNS AS OF 12/31/2019 Four th Quarte r 2019 One-YearSource: FactSet Against a backdrop of rising yields, the Bloomberg Barclays U.S. Aggregate Bond Index rose by 0.2% over the quarter. Corporate bonds were the best performers, returning 1.2% while Government bonds underperformed with a return of -0.8%. Within credit, greater risk appetite led to outperformance of lower quality corporate bonds. High yield bonds returned 2.6% with spread narrowing offsetting the impact of higher underlying government bond yields while AAA- rated bonds underperformed with a return of -0.2%. Short-maturity bonds outperformed intermediate and long-maturity bonds over the quarter. Short-maturity bonds returned 0.6% while long-maturity bonds fell by 1.1% in Q4 2019. U.S. Fixed Income Markets Page 67 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Dec 09 Dec 11 Dec 13 Dec 15 Dec 17 Dec 19 U.S. 10-YEAR TREASURY AND TIPS YIELDS 10Y TIP S Yield 10Y Treasury Yield Sour ce:U.S. Department of Treas ury 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 0 5 10 15 20 25 30 Ma turit y (Y ears) U.S. TREAS URY YIELD CURV E 12/31/2018 9/30/2019 12/31/2019 Sour ce:U.S. Department of Treasur y U.S. Fixed Income Markets The U.S. nominal yield curve steepened over the quarter with yields falling at the short end of the curve and rising at longer maturities. As a result, the yield curve is no longer inverted. The 10-year U.S. Treasury yield retraced most of the prior quarter’s fall with a 24bps increase over the quarter to 1.92%. The 10-year TIPS yield remained unchanged over the quarter at 0.15%. With real yields broadly unchanged over the quarter, it became evident that yield movements were triggered not by growth expectations (which remain low) but instead by increasing inflation expectations. This follows sustained central bank easing, prospects of debt-financed fiscal stimulus and potential changes to inflation-targeting policies; all of which are supportive for higher inflation. The US Federal Reserve (Fed) cut the interest rate by 25bps to 1.50% from 1.75%. Meanwhile, in the latest "dot plot", the majority of the Federal Open Market Committee believed that interest rates will stay at current levels for at least the next year, with the next 25bps hike not anticipated until 2021. Page 68 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. European Fixed Income Markets German government bund yields rose in line with over developed market government bond yields, rising by 40bps to -0.19% over the quarter. Germany unexpectedly avoided a recession after growing by 0.1% in Q3, buoyed by increased consumer and public sector spending, which mitigated the impact of a weakening manufacturing sector. Italian government bond yields rose by 60bps to 1.42% over the quarter. Greek government bond yields rose by comparatively less than other European government bond yields. An increase in the country’s sovereign credit rating to BB-from B+ lessened the risk of default and led to a relatively modest 9bps increase in government bond yields to 1.43%. Spanish government bond yields rose by 33bps to 0.46% over a quarter in which Pedro Sanchez’s Socialist party won the most seats in general election, but fell short of a majority. European government bond spreads over 10-year German bunds generally fell across the Euro Area with the exception of Italian government bonds. The European Central Bank (ECB) kept its monetary policy unchanged over the quarter. In what was Christine Lagarde’s first rate-setting meeting as President, she sought to calm fears that the Euro Area could have ultra low rates, growth and inflation for an extended period. -1 % 1% 3% 5% 7% 9% 11 % 13 % 15 % 20 13 20 14 20 15 20 16 20 17 20 18 20 19 EUROZONE PERIPHERAL BOND SPREADS (10-YE AR SPREADS OVER GERMAN BUNDS) Spain Italy Portugal Gr ee ce Ireland Source:FactSet Page 69 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Spre ad (bps)12/31/2019 09/30/2019 12/31/2018 Qua rterly Cha nge (bps)One -Year Change (bps) U.S. Aggregate 39 46 54 -7 -15 Long Gov't 0 1 2 -1 -2 Long Credit 139 167 200 -28 -61 Long Gov't /Credit 79 95 113 -16 -34 MBS 39 46 35 -7 4 CMBS 72 70 86 2 -14 ABS 44 37 53 7 -9 Corporate 93 115 153 -22 -60 High Yield 336 373 526 -37 -190 Global Emerging Mark et s 287 312 330 -25 -43 So urce: F actSet, B lo omberg Barclays Credit Spreads Credit spreads over U.S. Treasuries generally narrowed over the quarter. Greater risk appetite saw spreads fall across the board but mostly in non-investment grade areas such as high yield and emerging market debt where greater yields are on offer. High yield bond spreads narrowed significantly by 37bps over the quarter. This was followed by long-duration corporate bond spreads, which narrowed by 28bps. Areas within securitized credit in the U.S. underperformed in comparison. While credit spreads in general narrowed over the quarter, spreads on CMBS and ABS securities widened by 2bps and 7bps respectively. Page 70 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 80 90 100 110 120 130 140 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 U.S. DOLLAR REL ATIVE TO EUR, GBP AND JP Y REBAS ED TO 100 AT 12/31/2013 EUR/USD GBP/USD JPY /USD Source: FactSet St ronger Do llar We ak er Do llar 80 85 90 95 100 105 110 115 120 125 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 TRADE WEI GHTED U.S. DOLLAR INDEX (1973 = 100) Source:Federal R es er ve Currency The upward trend in the US dollar was halted with cyclical supports of higher interest rates and relative economic strength fading to some extent. Returning risk appetite also upended the 'greenback' which had benefited from safe- haven activity. The U.S. dollar slipped by 2.8% on a trade-weighted basis over the quarter with notable underperformance against sterling. The removal of Hard Brexit risks following a sizeable majority gained by the incumbent Conservative Party in the UK general election led sterling significantly higher over the quarter. Sterling appreciated by 7.5% against the U.S. dollar. Economic data releases stabilized in the Euro Area over the quarter but the outlook for the manufacturing sector still appears murky with activity shrinking for the eleventh successive month. Despite these economic headwinds, the euro found support against the U.S. dollar from tighter interest rate differentials, appreciating by 2.9% against the U.S. dollar. The U.S. dollar moderately appreciated against the Japanese yen, which had appreciated during risk-off episodes earlier in the year. The yen weakened by 0.6% against the U.S. dollar over the quarter. Page 71 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 4.4% 3.8% 5.8% -0.2% 3.7% 7.1% 13.9% 3.6% 0.1% 7.7% 6.0% 11.8% 7.0% 17.0% 1.7% 4.3% -1.1% -6.0% -10.0%-5.0%0.0%5.0%10.0%15.0%20.0% Bloomberg Commodity Index Ex-Energy Ener gy Industrial Metals Pr ec. Metals Agric. Softs Gr ains Livestock COM MODITY R ETURNS AS OF 12/31/2019 Fourth Quar te r 2019 One-Year Source:Bl oomb er g Note: Softs and Grains are part of the wi der Agr iculture sector Commodities Additional supply cuts proposed by OPEC+ as well as a less pessimistic economic outlook helped crude oil prices rebound while the latter also provided firmer footing for commodity prices which saw Bloomberg Commodity Index return 4.4%. The price of Brent crude oil rose by 8.6% to $66/bbl and WTI crude oil spot prices rose by 12.9% to $61/bbl. Higher crude oil prices helped the Energy sector return 5.8%. Industrial Metals was the worst performing sector to post a negative return over the quarter. Remaining headwinds of declines in manufacturing output depressed prices and ultimately led to a return of -0.2%. Agriculture (7.1%) was the best performing sector in Q4 2019. Within the Agriculture sector, Softs rose by 13.9% while Grains rose by 3.6%. Page 72 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. 2.4% -0.5% 5.7% 5.0% 2.9% -0.5% 2.0% 3.5% 3.0% 10.4% 6.2% 13.7% 11.6% 7.5% 2.5% 7.6% 10.4% 8.3% -2.0%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0% Fixed Income/Converti ble Arb. Gl obal Macro Equity Hedge Emergi ng Markets Event-Driv en Distress ed -Restruc turing Relative Value Fund-Weighted Compos it e Index Fund of Funds Co mposite Index HEDGE FUND PERFORMANCE AS OF 12/31/2019 Fourth Quarte r 2019 On e-Year Note: Lates t 5 months o f HFR data are es ti mated by H FR a nd may c hange in the futur e. Source:HFR Hedge Fund Markets Overview Hedge fund performance was generally positive across all strategies in the fourth quarter. HFRI Fund-Weighted Composite Index and the HFRI Fund of Funds Composite Index produced returns of 3.5% and 3.0% respectively. Over the quarter, Equity Hedge and Emerging Markets strategies were the best performers with returns of 5.7% and 5.0% respectively, with these strategies benefiting from long equity positions amidst an equity market rally. Conversely, Global Macro and Distressed-Restructuring were the only strategies to generate negative returns of -0.5% each. Tr end-following Global Macro strategies experienced a difficult quarter, while their discretionary counterparts performed better. Page 73 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Private Equity Market Overview –Q3 2019 Slide 1 of 2 Fundraising: In Q3 2019, $174.3 billion was raised by 323 funds, which was an increase of 25.0% on a capital basis but a decrease of 12.9% by number of funds over the prior quarter. Dry powder stood at nearly $2.1 trillion at the end of the quarter, a modest increase compared to the previous quarter.1 Buyout: Global private equity-backed buyout deals totaled $92.0 billion in Q3 2019, which was down 12.6% on a number of deals basis and up 2.5% on a capital basis from 2Q 2019.1 Through the end of Q3 2019, the average purchase price multiple for all U.S. LBOs was 11.5x EBITDA, an increase of 0.9x over year-end 2018 and up from the five-year average (10.2x).2 Large cap purchase price multiples stood at 11.3x, up compared to the full-year 2018 level of 10.6x.2 The weighted average purchase price multiple across all European transaction sizes averaged 11.1x EBITDA for Q3 2019, flat with the 11.1x multiple seen at the end of 2Q 2019. Purchase prices for transactions of €1.0 billion remained at 11.3x at the end of Q3 2019, a drop from the 11.7x seen at year-end 2018. Transactions between €500.0 million and €1.0 billion were down 0.3x from the end of 2018, and stood at 11.0x at the end of the quarter.2 Globally, exit value totaled $78.2 billion from 432 deals during the third quarter, down from the $104.7 billion in exits from 453 deals during 2Q 2019.1 Venture: During the third quarter, 1,304 venture-backed transactions totaling $26.0 billion were completed in the U.S., which was a decrease on a capital and deal basis over the prior quarter’s total of $30.4 billion across 1,555 deals. This was 21.9% higher than the five-year quarterly average of $21.3 billion.3 Total U.S. venture-backed exit activity totaled approximately $35.4 billion across 189 completed transactions in Q3 2019, down significantly on a capital basis from the $141.1 billion across 248 exits in Q2 2019.4 Mezzanine: Nine funds closed on $1.4 billion during the third quarter. This was flat with the prior quarter’s total of $1.4 billion raised by five funds, but represented a decrease of 73.2% from the five-year quarterly average of $5.2 billion. Estimated dry powder was $47.5 billion at the end of Q3 2019, down from the $51.5 billion seen at the end of 2Q 2019.1 LTM Global Private Equity-Backed Buyout Deal Volume Sources: 1 Preqin 2 Standard & Poor’s 3 PwC/CB Insights MoneyTree Report 4 PitchBook/NVCA Venture Monitor 5 Fitch Ratings 6 Thomson Reuters 7 UBS Notes: FY=Fiscal year ended 12/31; YTD=Year to date; LTM=Last 12 months (aka trailing 12 months); PPM=Purchase Price Multiples: Total Purchase Price ÷ EBITDA. Source: Preqin 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 $0 $100 $200 $300 $400 $500 $600 1Q11 4Q11 3Q12 2Q13 1Q14 4Q14 3Q15 2Q16 1Q17 4Q17 3Q18 2Q19 # of DealsValue ($ Billions)Deal Value ($ Bil lions) Number of D eals Page 74 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Private Equity Market Overview –Q3 2019 Slide 2 of 2 Distressed Debt: The LTM U.S. high-yield default rate was 2.6% as of November 2019, which was up from year-end 2018’s LTM rate of 2.4%.5 During the quarter, $3.8 billion was raised by seven funds, lower than both the $15.5 billion raised by 17 funds in 2Q 2019 and the five-year quarterly average of $11.2 billion.1 Dry powder was estimated at $110.7 billion at the end of Q3 2019, which was down slightly from the $119.4 billion seen at the end of 2Q 2019. This remained above the five-year annual average level of $104.1 billion.1 Secondaries:Seven funds raised $14.6 billion during the quarter, up significantly from the $1.7 billion raised by five funds in Q2 2019 and the $4.0 billion raised by eight funds in Q3 2018.1 At the end of Q3 2019, there were an estimated 63 secondary and direct secondary funds in market targeting roughly $65.9 billion.1 The average discount rate for all private equity sectors finished the quarter at 9.4%, higher than the 9.2% discount at the end of Q2 2019.6 Infrastructure: $9.9 billion of capital was raised by 21 funds in Q3 2019 compared to $22.6 billion of capital raised by 29 partnerships in 2Q 2019. At the end of the quarter, dry powder stood at an estimated $203.1 billion, down from Q2 2019’s total of $217.0 billion. Infrastructure managers completed 593 deals with an estimated aggregate deal value of $87.8 billion in Q3 2019 compared to 618 deals totaling $175.8 billion a quarter ago.1 Natural Resources: During Q3 2019, four funds closed on $1.5 billion compared to five funds totaling $5.7 billion in 2Q 2019. Energy and utilities industry managers completed approximately 119 deals totaling an estimated $17.1 billion through Q3 2019, which represents 49.9% of the full year capital deployment in 2018.1 Source: S&P Sources: 1 Preqin 2 Standard & Poor’s 3 PwC/CB Insights MoneyTree Report 4 PitchBook/NVCA Venture Monitor 5 Fitch Ratings 6 Thomson Reuters 7 UBS Notes: FY=Fiscal year ended 12/31; YTD=Year to date; LTM=Last 12 months (aka trailing 12 months); PPM=Purchase Price Multiples: Total Purchase Price ÷ EBITDA. U.S. LBO Purchase Price Multiples –All Transactions Sizes 8.5 x 8.8 x 8.7x 8.8x 9.8x 10.3x 10.0x 10.6x 10.6x 11.5x 0.0 x 2.0 x 4.0 x 6.0 x 8.0 x 10.0 x 12.0 x Se nior Debt/E BITDA Sub Debt /EBITDA Equity/EBITDA Others Page 75 Aon Proprietary & Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. U.S. Commercial Real Estate Markets Sources: RCA, AON HEWITT 9/30/2019 U.S.Core Real Estate returned 1.5%*over the fourth quarter,equating to a 5.4%total gross return year-over-year,including a 4.2%income return.Debt mark to market was a flat for the quarter.The industrial sector was once again the best performing sector,while retail continues perform poorly relative to other major property types.E-commerce continues to be the primary force driving the bifurcation of performance between the industrial and retail sectors. Going forward,income and income growth are expected to be the larger drivers of return,given the current point of the real estate cycle. Global property markets,as measured by the FTSE EPRA/NAREIT Developed Real Estate Index,returned 2.0%(USD)in aggregate during the fourth quarter.REIT market performance was driven by Asia Pacific (6.4%USD),North America (-0.9%USD)and Europe (13.8%USD).The U.S.REIT markets (FTSE NAREIT Equity REITs Index)declined -0.8%in the fourth quarter.The U.S.10-year treasury bond yield increased 25bps to 1.92%. According to RCA through November 2019,the U.S.property market has experienced price growth of 8.7%year-over-year across major sectors.The industrial sector pricing appreciated 13.6%year-over-year,leading all sectors.The apartment sector was the second strongest,appreciating 9.3%year- over-year.Transaction volume was down -3%over the same period. Return expectations have normalized,with go forward expectations in line with historical norms.During 2019,the market benefited from three rate cuts by the Federal Reserve,and declining interest rates led to a rally across asset classes.According to Preqin,there remains a record amount of dry powder ($338 billion)in closed-end vehicles seeking real estate exposure,which should continue to lend support to valuations and liquidity in the commercial real estate market. Aon prefers investments that offer relatively strong rental income growth,or value-add potential with near-term income generation prospects.It is critical to identify secular driven investment themes in the current environment.Real estate is uniquely positioned in this economic environment,because high quality real estate has the ability to leverage an improving economy,while at the same time high quality income generation offers downside protection. *Indicates preliminary NFI-ODCE data gross of fees 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 CAPITALIZATION RATES BY SECTOR Office Industrial Retail Apartment 1.5% 5.4%7.1%9.0%11.4% -0.8% 26.0% 8.1%7.2% 11.9% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Q4 2019 1-Year 3-Year s 5-Year s 10-Year s PRIVATE VS. PUBLIC REAL ESTATE RET URNS AS OF 12/31/2019 Pr ivate (NF I-ODCE Gr oss)* Public (NA REIT Gr oss) *Four th quarter r eturns a re p reliminary Sources: NCREIF, FactSet Page 76 Appendix Page 77 Fee Schedule Market Value As of 12/31/2019 $000 % of Portfolio Estimated Annual Fee $000 Estimated Annual Fee (%) Total Pension 295,913 100.00 1,450 0.49 Total Domestic Equity 105,167 35.54 300 0.29 BlackRock Russell 1000 Index Fund Non-Lending 0.04 % of Assets 73,564 24.86 26 0.04 Kennedy Mid Cap Value 0.75 % of First $25 M 0.70 % of Next $25 M 0.60 % Thereafter 15,339 5.18 115 0.75 TimesSquare Small Cap Growth 0.98 % of Assets 16,264 5.50 159 0.98 Total International Equity 54,317 18.36 494 0.91 Morgan Stanley International Equity 0.90 % of Assets 35,695 12.06 321 0.90 Morgan Stanley Emerging Markets Fund 0.93 % of Assets 18,622 6.29 173 0.93 Total Fixed Income 100,611 34.00 352 0.35 Income Research 0.45 % of First $10 M 0.35 % of Next $10 M 0.30 % of Next $10 M 0.23 % of Next $20 M 0.23 % of Next $50 M 0.20 % Thereafter 39,329 13.29 131 0.33 Prudential Core Plus Bond 0.30 % of First $50 M 0.28 % of Next $100 M 0.25 % of Next $100 M 0.20 % Thereafter 36,944 12.48 111 0.30 Brandywine Global Opportunistic Fixed Income 0.45 % of First $50 M 0.40 % of Next $50 M 0.35 % Thereafter 24,338 8.22 110 0.45 Real Estate 32,566 11.01 280 0.86 UBS Trumbull Property Fund 0.96 % of First $10 M 0.83 % of Next $15 M 0.81 % of Next $25 M 0.79 % of Next $50 M 0.67 % of Next $150 M 0.60 % of Next $150 M 0.56 % of Next $200 M 0.52 % Thereafter 32,566 11.01 280 0.86 Cash Account 0.20 % of Assets 2,000 0.68 4 0.20 Total Pension Fee Schedule As of December 31, 2019 Page 78 Benchmark Descriptions Policy Benchmark As of October 1, 2018, the Policy Index consists of 25% Russell 1000 Index, 10% Russell 2000 Index, 12% MSCI EAFE Index (net), 6% MSCI EM Index (net), 14% BC Int. Gov/Credit Index, 8% Citi WG Bond Index, 13% Barclays U.S. Aggregate Index, and 12% NCREIF Property Index. From January 1, 2017 to October 1, 2018, The Policy Benchmark consists of 20% Russell 1000 Index, 6% Russell 2000 Index, 10% MSCI EAFE Index, 4% MSCI Emerging Markets Index, 12% BC Aggregate Index, 14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 15% HFRI Fund of Funds Composite Index, 10% NCREIF Property Index. From August 1, 2015 to January 1, 2017, The Policy Benchmark consists of 20% Russell 1000 Index, 6% Russell 2000 Index, 10% MSCI EAFE Index, 4% MSCI Emerging Markets Index, 12% BC Aggregate Index, 14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 15% HFRI Fund of Funds Composite Index, 5% Wellington DIH Multi-Asset Inflation Index and 5% NCREIF Property Index. From March 1, 2015 to August 1, 2015, The Policy Benchmark consists of 21% Russell 1000 Index, 6% Russell 2000 Index, 11% MSCI EAFE Index, 3% MSCI Emerging Markets Index, 10% 65% MSCI World/35% BC Aggregate Blend Index, 2% 50% BC Credit/25% S&P LSTA/25% BC High Yield Blend Index,14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 5% BofA Merrill Lynch US High Yield Cash Pay Index, 4% HFRI Equity Hedge (Total) Index, 5% JPMorgan GBI-EM Diversified and 5% NCREIF Fund Index-OEDCE. From April 1, 2014 to March 1, 2015, The Policy Benchmark consists of 21% Russell 1000 Index, 6% Russell 2000 Index, 11% MSCI EAFE Index, 3% MSCI Emerging Markets Index, 10% 65% MSCI World/35% BC Aggregate Blend Index, 2% 50% BC Credit/25% S&P LSTA/25% BC High Yield Blend Index,14% BC Intermediate Gov/Credit Index, 9% Citigroup World Government Bond Index, 5% BofA Merrill Lynch US High Yield Cash Pay Index, 4% CPI+5%, 5%Wellington DIH Benchmark, 5% JPMorgan GBI-EM Diversified and 5% NCREIF Fund Index-OEDCE. Prior to April 1, 2014, the Policy Benchmark is comprised of 20% Russell 1000 Index, 5% Russell 2000 Index, 10% MSCI EAFE Index,3% MSCI Emerging Markets Index, 10% 65% MSCI World/35% BC Aggregate Blend Index, 2% 50% BC Credit/25% S&P LSTA/25% BC High Yield Blend Index, 13% BC Intermediate Gov/Credit Index, , 8% Citigroup World Government Bond Index, 5% BofA Merrill Lynch US High Yield, Cash Pay Index, 5% 3 Month T-Bills + 3%,4% CPI + 5%, 5% Wellington DIH Multi-Asset Inflation Index, 5% JPM GBI-EM Global Diversified Index, and 5% NCREIF Fund Index-OEDCE. Note: Wellington DIH Multi-Asset Inflation Index consists of 50% MSCI ACW Commodity Producers Index, 25% DJ AIG Commodity Total Return Index and 25% BC US Treasury Inflation Notes: 1-10 Year Page 79 Benchmark Descriptions Bloomberg Barclays Corporate High Yield Bond Index -An index that covers the USD-dominated, non-investment grade, fixed rate, taxable corporate bond market. Debt issues from emerging market countries are excluded. Securities are classified as high-yield if the middle rating is Ba1/BB+ or below. Bloomberg Barclays Emerging Markets Index -An unmanaged index that tracks total returns for external-currency-denominated debt instruments of the emerging markets. Bloomberg Barclays Global Aggregate -Provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. Bloomberg Barclays Global Treasury Ex-US -The Barclays Global Treasury ex US Index is a subset of the flagship Global Treasury Index that does not have any exposure to US debt. This multi-currency benchmark includes investment grade, fixed-rate bonds issued by governments in their native currencies. Bloomberg Barclays Inflation Index -Measures the performance of the U.S. Treasury Inflation Protected Securities ("TIPS") market. Bloomberg Barclays Universal Index -A market value-weighted index which is the union of the U.S. Aggregate Index, U.S. High Yield Corporate Index, Eurodollar Index, U.S. Emerging Markets Index and the CMBS High Yield Index. The Index is appropriate for core plus fixed income mandates. Bloomberg Barclays U.S. Aggregate Bond Index -A market value-weighted index consisting of government bonds, SEC-registered corporate bonds and mortgage-related and asset-backed securities with at least one year to maturity and an outstanding par value of $250 million or greater. This index is a broad measure of the performance of the investment grade U.S. fixed income market. Bloomberg Barclays U.S. Government/Credit Index -A subcomponent of the Barclays Capital Aggregate Index, this benchmark includes treasury securities, government related issues, and high quality corporate bonds with an outstanding par value of $250 million or greater and at least one year of maturity remaining. Bloomberg Barclays U.S. Government Index -A market value weighted index of U.S. government and government agency securities (other than mortgage securities) with maturities of one year or more. Bloomberg Barclays U.S. High Yield Index -An index composed of non-investment grade corporate debt denominated in U.S. dollars. The issues have to have an outstanding par value of $150 million or greater and at least one year of maturity remaining. Bloomberg Barclays U.S. Intermediate Aggregate Bond Index -A market value-weighted index consisting of U.S. Treasury securities, corporate bonds and mortgage-related and asset-backed securities with one to ten years to maturity and an outstanding par value of $250 million or greater. Bloomberg Barclays U.S. Intermediate Government Bond Index -An unmanaged index considered representative of intermediate-term fixed-income obligations issued by the U.S. treasury, government agencies and quasi-federal corporations. Bloomberg Barclays U.S. Intermediate Government/Credit Index -A market-value weighted index consisting of U.S. government bonds and SEC-registered corporate bonds with one to ten years to maturity and an outstanding par value of $150 million or greater. Bloomberg Barclays U.S. Intermediate Treasury -An unmanaged index considered representative of intermediate-term fixed-income obligations issued by the U.S. treasury. Bloomberg Barclays U.S. Long Credit Bond Index -An unmanaged index considered representative of long-term fixed-income obligations issued by U.S. corporate, specified foreign debentures, and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC-registered. Page 80 Benchmark Descriptions Bloomberg Barclays U.S. Long Gov’t/Credit Index -The Barclays Capital U.S. Government/ Credit Bond Index measures performance of U.S. dollar denominated U.S. treasuries, government-related, and investment grade U.S. corporate securities that have a remaining maturity of greater than or equal to 1 year. In addition, the securities have $250 million or more of outstanding face value, and must be fixed rate and non-convertible. Bloomberg Barclays U.S. Long Government Bond Index -An unmanaged index considered representative of long-term fixed-income obligations issued by the U.S. treasury, government agencies and quasi-federal corporations. Bloomberg Barclays U.S. TIPS -A market value-weighted index consisting of U.S. Treasury Inflation Protected Securities with one or more years remaining until maturity with total outstanding issue size of $500m or more. Bloomberg Barclays U.S. Treasury 20-30 Year STRIPS Index -A subcomponent of the Barclays Aggregate Index, this benchmark includes long-term treasury STRIPS. Bloomberg Commodity Index -Consists of 22 exchange-traded futures on physical commodities, which are weighted to account for economic significance and market liquidity. Performance is calculated on an excess return basis and reflects commodity future price movements. BofA Merrill Lynch 3 Month Treasury Bill -An index that measures the average return of the last three-month U.S. Treasury Bill issues. BofA Merrill Lynch High Yield Master -A market capitalization-weighted index that tracks the performance of U.S. dollar-denominated, below investment grade corporate debt publicly issued in the U.S. domestic market. Citigroup 90-Day T-Bill Index -An index that measures the average return of the last three-month U.S. Treasury Bill issues. Credit Suisse Leveraged Loan Index -Designed to mirror the investable universe of the U.S. dollar denominated leveraged loan market. CRSP US Large Cap Index -an index comprised of nearly 640 US large cap companies and includes securities traded on NYSE, NYSEMarket, NASDAQ, or ARCA, representing nearly 85% of the U.S. investable equity market. The index is reconstituted quarterly after the market close on the third Fridays of March, June, September, and December. CRSP US Total Market Index -an index comprised of nearly 4,000 constituents across mega, large, small, and micro capitalizations and includes securities traded on NYSE, NYSE Market, NASDAQ, or ARCA, representing nearly 100% of the U.S. investable equity market. The index is reconstituted quarterly after the market close on the third Fridays of March, June, September, and December. DJ U.S. Completion Total Stock Market Index -A capitalization-weighted index that consists of the stocks in the Dow Jones U.S. Total Stock Market Index less the stocks in the S&P 500 Stock Index. DJ U.S. Total Stock Market Index -A capitalization-weighted stock index representing all domestic common stocks traded regularly on the organized exchanges. The index is the broadest measure of the aggregate domestic stock market and includes approximately 5,000 stocks. FTSE 4Good U.S. Select Index -a socially responsible investment (SRI) index of US stocks that excludes companies with certain business activities such as weapons, tobacco, gambling, alcohol, nuclear power, and adult entertainment. FTSE All-World ex-U.S. Index -A capitalization-weighted stock index representing 46 developed market countries and emerging market countries excluding the U.S. Page 81 Benchmark Descriptions FTSE EPRA NAREIT Global ex-U.S. Index -Designed to represent general trends in eligible real estate equities worldwide. Relevant real estate activities are defined as the ownership, disposure and development of income-producing real estate. FTSE Global All Cap ex US Index -a market-capitalization weighted index representing the performance of roughly 5350 large, mid and small cap companies in 46 Developed and Emerging markets worldwide, excluding the USA. FTSE Global Core Infrastructure Index -Represents the performance of infrastructure and infrastructure-related securities companies in a set of industries that FTSE defines as being involved in infrastructure. The series is based on the FTSE Global Equity Index Series and both developed and emerging markets are included. FTSE NAREIT U.S. Equity REITS -Free float adjusted, market capitalization weighted index of US based equity real estate investment trusts (REITs). Goldman Sachs Commodity Index -A composite index of commodity sector returns which represents a broadly diversified, unleveraged, long-only position in commodity futures. HFRI Fund-of-Fund Index -This index is equity-weighted including 800 constituents. It includes both domestic and offshore accounts and is valued in U.S. dollars. Only fund-of- fund products are included in the index that have at least $50 million under managements and have been actively trading for at least one year. All funds report net monthly returns. HFRI Fund Weighted Composite Index -The HFRI Fund Weighted Composite Index is a global, equal-weighted index of over 2,000 single-manager funds that report to HFR Database. Constituent funds report monthly net of all fees performance in US Dollar and have a minimum of $50 Million under management or a twelve (12) month track record of active performance. The HFRI Fund Weighted Composite Index does not include Funds of Hedge Funds. Hueler Stable Value Index -The Hueler Analytics Stable Value Pooled Fund Comparative Universe represents investment strategies of $96 billion in stable value assets, across 24 pooled funds, invested in contracts universe across a universe of 16 general account issuers and 14 synthetic wrap providers.The allocation of pooled fund assets is dominated by synthetic contracts issued by insurance companies and banks. iMoneyNet All Taxable Money Funds Index -An index made up of the entire universe of money market mutual funds. The index currently represents over 1,300 funds, or approximately 99 percent of all money fund assets. iMoneyNet Money Fund Average -An index made up of the entire universe of money market mutual funds. The index currently represents over 1,300 funds, or approximately 99 percent of all money fund assets. J.P. Morgan EMBI Global Diversified -Comprised of dollar-denominated Brady bonds, traded loans and Eurobonds issued by emerging market sovereign and quasi-sovereign entities. The Diversified version limits the weights of the index countries by only including a specified portion of those countries' eligible current face amounts of debt outstanding, providing for a more even distribution of weights within the countries in the index. MSCI All Country World ex-U.S. Index -A capitalization-weighted index of stocks representing 44 stock markets in Europe, Australia, the Far East, the Middle East, Latin America and North America. Index consists of 23 developed and 21 emerging countries, but excludes the U.S. MSCI All Country World ex-U.S. Index IMI-A capitalization-weighted index of large, mid and small cap stocks representing 22 developed (excluding the United States) and 24 emerging market countries. The index is the broadest measure of the aggregate non-US stock market, covering approximately 99% of the global equity investment opportunity set outside of the United States. Page 82 Benchmark Descriptions MSCI All Country World ex-U.S. Small Cap Index -Covers all investable small cap securities with a market capitalization below that of the companies in the MSCI Standard Indices (excluding U.S.), and target approximately 14% of each market’s free-float adjusted market capitalization. MSCI All Country World Index -A capitalization-weighted index of stocks representing 46 stock markets in Europe, Australia, the Far East, the Middle East, Latin America and North America. MSCI All Country World Index IMI -A capitalization-weighted index of large, mid and small cap stocks representing 23 developed and 24 emerging market countries. The index is the broadest measure of the aggregate global stock market, covering approximately 99% of the global equity investment opportunity set. MSCI EAFE Growth Index -A capitalization-weighted index of 21 stock markets in Europe, Australia, Asia and the Far East designed to capture the growth-oriented companies. MSCI EAFE Index -A capitalization-weighted index of stocks representing 22 developed countries in Europe, Australia, Asia, and the Far East. MSCI EAFE Small Cap Index -A capitalization-weighted index of small cap stocks representing 23 developed country markets in Europe, Australia, Asia, and the Far East. MSCI EAFE Value Index -A capitalization-weighted index of 21 stock markets in Europe, Australia, Asia and the Far East designed to capture the value-oriented companies. MSCI Emerging Markets Index -A capitalization-weighted index of stocks representing 22 emerging country markets. MSCI Emerging Markets Value Index -A capitalization-weighted index considered representative of value stocks across 46 stock markets in Europe, Australia, the Far East, the Middle East, Latin America and North America. MSCI U.S. Broad Market Index -A capitalization-weighted stock index that aggregates the MSCI U.S. Large Cap 300, Mid Cap 450, Small Cap 1,750 and Micro Cap Indices. This index represents approximately 99.5% of the capitalization of the U.S. Equity market and includes approximately 3,562 companies. MSCI U.S. REIT Index -A broad index that fairly represents the equity REIT opportunity set with proper investability screens to ensure that the index is investable and replicable. The index represents approximately 85% of the U.S. REIT universe. MSCI World Index -A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, representing 24 developed market country indices. NCREIF Property Index -A capitalization-weighted index of privately owned investment grade income-producing properties representing approximately $269 billion in assets. NFI ODCE Index -A capitalization weighted index comprised of open-end, Core funds investing in commercial real estate properties. The funds that constitute the index are subject to certain geographic and property type diversification requirements as well as leverage restrictions. The index reflects the impact of leverage on investment results. The returns shown in this report are net of management fees of the respective funds included in the index. Rolling 3-year Constant Maturity Treasury Index -An index published by the Federal Reserve Board based on the monthly average yield of a range of Treasury securities, all adjusted to the equivalent of a three-year maturity. Russell 1000 Growth Index -An index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher I/B/E/S growth forecasts. Russell 1000 Index -A capitalization-weighted index of the 1,000 largest publicly traded U.S. stocks by capitalization. Page 83 Benchmark Descriptions Russell 1000 Value Index -An index that measures the performance of those stocks included in the Russell 1000 Index with lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. Russell 2000 Growth Index -A capitalization-weighted index of those stocks in the Russell 2000 Index with higher price-to-book ratios and higher I/B/E/S earnings growth forecasts. Russell 2000 Index -A capitalization-weighted index of the smallest 2,000 stocks in the Russell 3000 Index. The index excludes the largest-and smallest-capitalization issues in the domestic stock market. Russell 2000 Value Index -An index that measures the performance of those stocks included in the Russell 2000 Index with lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. Russell 2500 Growth Index -A capitalization-weighted index representing those companies within the Russell 2500 Index with higher price-to-book ratios and higher I/B/E/S earnings growth forecasts. Russell 2500 Index -The Index is constructed by first identifying the 3,000 largest-capitalization U.S. stocks and ranking them by market capitalizations, choosing the bottom 2,500 names on the list. Russell 2500 Value Index -An index that measures the performance of those stocks included in the Russell 2500 Index with lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. Russell 3000 Growth Index -A capitalization-weighted index consisting of those Russell 3000 Index stocks that have higher price-to-book ratios and higher I/B/E/S earnings growth forecasts. Russell 3000 Index -A capitalization-weighted index consisting of the 3,000 largest publicly traded U.S. stocks by capitalization. This index is a broad measure of the performance of the aggregate domestic equity market. Russell 3000 Value Index -A capitalization-weighted index consisting of those Russell 3000 Index stocks that have lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. Russell Mid Cap Growth Index -A capitalization-weighted index representing those stocks in the Russell MidCap Index with higher price-to-book ratios and higher I/B/E/S earnings growth forecasts. Russell Mid Cap Index -A capitalization-weighted index of the 800 smallest stocks in the Russell 1000 Index. This index is a broad measure of mid-capitalization stocks. Russell Mid Cap Value Index -A capitalization-weighted index consisting of those Russell MidCap Index stocks that have lower price-to-book ratios and lower I/B/E/S earnings growth forecasts. S&P 500 Index -A capitalization-weighted index representing stocks chosen by Standard & Poor's, Inc. for their size, liquidity, stability and industry group representation. The companies in the S&P 500 Index are generally among the largest in their industries. Page 84 Benchmark Descriptions S&P Completion Index -The S&P Completion Index is a sub-index of the S&P Total Market Index, including all stocks eligible for the S&P TMI and excluding all current constituents of the S&P 500. The index covers approximately 4,000 constituents, offering investors broad exposure to mid, small,and micro cap companies. S&P Leverage Loan Index -A daily total return index that uses LSTA/LPC Mark-to-Market Pricing to calculate market value change. S&P MidCap 400 Index -A market-capitalization-weighted index of stocks in all major industries in the mid-range of the U.S. stock market. Wilshire REIT -A measure of the types of U.S. real estate securities that represent the ownership and operation of commercial or residential real estate. To be included in the index, a company must have a market capitalization of $200 million and have at least 75% of the total revenue derived from the ownership and operation of the real estate assets. Indices cannot be invested in directly. Unmanaged index returns assume reinvestment of any and all distributions and do not reflect our fees or expenses. Past performance is no guarantee of future results. Please feel free to contact us at retirement@aonhewitt.com for more index information. Page 85 This Page Left Blank Intentionally Page 86 Disclaimers and Notes Page 87 Notes: §The rates of return contained in this report are shown on an after-fees basis unless otherwise noted. They are geometric and time weighted. §Universe percentiles are based upon an ordering system in which 1 is the best ranking and 100 is the worst ranking. §Due to rounding throughout the report,percentage totals displayed may not sum up to 100.0%.Additionally,individual fund totals in dollar terms may not sum up to the plan totals. §All information presented in this report should be considered preliminary.Finalized data will be available on next Quarterly Investment Report after the close of the quarter. Notes Page 88 Past performance is not necessarily indicative of future results. Unless otherwise noted,performance returns presented reflect the respective fund’s performance as indicated.Returns may be presented on a before-fees basis (gross)or after- fees basis (net).After-fee performance is net of each respective sub-advisors’investment management fees and include the reinvestment of dividends and interest as indicated on the notes page within this report or on the asset allocation and performance summary pages.Actual returns may be reduced by AHIC’s investment advisory fees or other trust payable expenses you may incur as a client.AHIC’s advisory fees are described in Form ADV Part 2A.Portfolio performance,characteristics and volatility also may differ from the benchmark(s) shown. The information contained herein is confidential and proprietary and provided for informational purposes only.It is not complete and does not contain certain material information about making investments in securities including important disclosures and risk factors.All securities transactions involve substantial risk of loss.Under no circumstances does the information in this report represent a recommendation to buy or sell stocks, limited partnership interests, or other investment instruments. The data contained in these reports is compiled from statements provided by custodian(s),record-keeper(s),and/or other third-party data provider(s).This document is not intended to provide,and shall not be relied upon for,accounting and legal or tax advice.AHIC has not conducted additional audits and cannot warrant its accuracy or completeness.We urge you to carefully review all custodial statements and notify AHIC with any issues or questions you may have with respect to investment performance or any other matter set forth herein. The mutual fund information found in this report is provided by Thomson Reuters Lipper and AHIC cannot warrant its accuracy or timeliness.Thomson Reuters Lipper Global Data Feed provides comprehensive coverage of mutual fund information directly to Investment Metrics,AHIC’s performance reporting vendor,via the PARis performance reporting platform. Thomson Reuters Lipper is the data provider chosen by Investment Metrics, and as such, AHIC has no direct relationship with Thomson Reuters Lipper. Refer to Hedge Fund Research, Inc. www.hedgefundresearch.com for information on HFR indices. FTSE International Limited (“FTSE”)©FTSE 2017.“FTSE®”and “FTSE4Good®”are trademarks of the London Stock Exchange Group companies and are used by FTSE International Limited under license.The FTSE indices are calculated by FTSE International Limited in conjunction with Indonesia Stock Exchange,Bursa Malaysia Berhad,The Philippine Stock Exchange,Inc.,Singapore Exchange Securities Trading Limited and the Stock Exchange of Thailand (the "Exchanges").All intellectual property rights in the FTSE/ASEAN Index vest in FTSE and the Exchanges.Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and /or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. Aon Hewitt Investment Consulting,Inc.(“AHIC”)is a federally registered investment advisor with the U.S.Securities and Exchange Commission (“SEC”).AHIC is also registered with the Commodity Futures Trade Commission as a commodity pool operator and a commodity trading advisor,and is a member of the National Futures Association.The AHIC ADV Form Part 2A disclosure statement is available upon written request to: Aon Hewitt Investment Consulting, Inc. 200 East Randolph Street Suite 700 Chicago, IL 60601 ATTN: AHIC Compliance Officer Disclaimer