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HomeMy Public PortalAboutDeferred Comp 2010 4th Quarter Report457 Deferred Compensation Plan Fourth Quarter 2010 Executive Summary February 24, 2011 Michael J. Valchine, CAIA, Consultant Dion Stevens, Consultant Kim Kaczor, Senior Analyst Q4 2010: Capital Markets Summary *35% LC, 10% SC, 12% Int'l, 3% Emerging, 25% FI, 5% HY, 5% Global FI, 5% REITS 1 Equity markets in the US posted  iti lt i th fth t Q4 2010: Capital Markets Summary 12 2% S&P 500 Sector Returns (Wgts.) positive results in the fourth quarter,  pushing calendar‐year returns higher.  The rally that began in September  continued into November before  cooling off, only to return with vigor in  December. Sentiment continued to  drive the markets, as investors  focused on the Fed’s quantitative  easing (QE2)program to stimulate the April 23rd peak September S&P Return: 8.9% August S&P 500 Return: -4.5% July S&P 500 Return: 7.0% 12.2% 5.3% 20.9% 11.2% 3.1% 11.2% 10.0% 26.1% 5.9% 7.1% -1.5% -1.6% 16.5% 9.5% Con.Discretionary (10.63%) Con.Staples (10.63%) Energy (12.03%) Financials (16.06%) Health Care (10.91%) Industrials (10.95%) Info Tech. (18.65%)easing (QE2) program to stimulate the  economy and tax relief designed to  increase business and consumer  spending. All sectors but utilities  posted gains for the quarter. 18.5% 5.9% -2.0% 10.4% 9.2% 3.3% -30% -10% 10% 30% 50% 70% 90% Materials (3.74%) Telecom (3.11%) Utilities (3.3%)QTD 1 Year Unemployment remains persistently  high but improved modestly over the  quarter from 9.7% to 9.4%. U‐6 unemployment ended the year at  16.7%.  U‐6 is the broadest measure of  unemployment. It includes people  who are not actively looking for work, 8% 10% 12% 14% 16% 18% 20%ployment RateUnemployment Rate vs. U-6 but who have indicated that they  want a job and have looked for work  (without success) sometime in the  past 12 months, and people working  part‐time because they cannot find  full‐time work. 0% 2% 4% 6%UnemUnemployment Rate U-6 Persistently low levels of inflation  combined with accommodative Fed  policy helped to hold interest rates  near record lows in 2010. The Barclays  Capital Aggregate yield hit an all‐time  l f %i l b b 4% 5%U.S. Treasury Yield Curve Yield Curve is lower today than one year ago... low of 2.35% in early November, but  rose back above 3% in December with  the extension of the Bush  administration’s tax cuts and mid‐ term election results that yielded a  divided Congress.  NEPC’s 2011 annual asset allocation  letter entitled “The Long View ” 1% 2% 3%Yield (%)letter, entitled The Long View,  forecasts lower market returns for  the next 5 –7 years because of  depressed bond yields.   0% 0 5 10 15 20 25 30 Years to Maturity Current Last Qtr.12 Months Ago 3 Yrs. Ago Rising Yields = Falling Prices 2 Asset Summary Beginning Beginning End Periods Ending Year Quarter Quarter 31-Dec-10 Universe ($000) (%) ($000) (%) ($000) (%) Composite $27,905 $29,416 $31,487 Lifecycle Options $472 2% $663 2% $758 2% Vanguard Target Retirement Income US OE Retirement Income $30 0% $46 0% $46 0% Vanguard Target Retirement 2005 US OE Target Date 2000-2010 $55 0% $0 0% $0 0% Vanguard Target Retirement 2010 US OE Target Date 2000-2010 $70 0% $195 1% $205 1% Vanguard Target Retirement 2015 US OE Target Date 2011-2015 $79 0% $68 0% $83 0% Vanguard Target Retirement 2020 US OE Target Date 2016-2020 $23 0% $30 0% $52 0% Vanguard Target Retirement 2025 US OE Target Date 2021-2025 $42 0% $53 0% $64 0% Vanguard Target Retirement 2030 US OE Target Date 2026-2030 $61 0% $74 0% $87 0% Vanguard Target Retirement 2035 US OE Target Date 2031-2035 $10 0% $42 0% $49 0% Vanguard Target Retirement 2040 US OE Target Date 2036-2040 $40 0% $62 0% $67 0% V d T t R ti t 2045 US OE Target Date 2041 2045 $44 0%$24 0%$29 0%Vanguard Target Retirement 2045 US OE Target Date 2041-2045 $44 0%$24 0%$29 0% Vanguard Target Retirement 2050 US OE Target Date 2050+$19 0% $70 0% $77 0% Lifestyle Options $3,883 14% $4,129 14% $4,309 14% Vanguard LifeStrategy Income US OE Conservative Allocation $332 1% $366 1% $393 1% Vanguard LifeStrategy Conserv Gr US OE Conservative Allocation $647 2% $583 2% $618 2% Vanguard LifeStrategy Moderate Gr US OE Moderate Allocation $1,792 6% $2,049 7% $2,111 7% Vanguard LifeStrategy Growth US OE Large Blend $1,112 4%$1,131 4%$1,188 4%ggy g $,$,$, Core Options $23,550 84% $24,624 84% $26,419 84% Vanguard Prime Money Market Inv $1,356 5% $1,192 4% $1,034 3% Vanguard Retirement Savings Trust $2,386 9% $2,800 10% $2,632 8% Vanguard Total Bond Market Index US OE Intermediate-Term Bond $2,344 8% $2,572 9% $2,496 8% Vanguard Balanced Index US OE Moderate Allocation $3,380 12% $3,607 12% $3,698 12% Vanguard 500 Index US OE Large Blend $3,044 11% $3,063 10% $3,501 11% Vanguard Windsor II US OE Large Value $5,290 19% $5,052 17% $5,602 18% Vanguard U.S. Growth US OE Large Growth $2,022 7% $2,006 7% $2,296 7% Vanguard Mid Capitalization Index US OE Mid-Cap Blend $1,039 4% $1,327 5% $1,650 5% Vanguard Small Cap Index US OE Small Blend $1,114 4% $1,370 5% $1,699 5% Vanguard International Growth US OE Foreign Large Blend $1,575 6% $1,636 6% $1,810 6% 3 Performance Summary – Target Date Funds Last One Three Five Ten Periods Ending Quarter Year Years Years Years 31-Dec-10 Universe (%) (%)(%) (%) (%) Vanguard Target Retirement Income US OE Retirement Income 2.5 49 9.4 42 3.6 19 5.1 15 n/a Vanguard Retirement Income Benchmark 2.4 9.4 3.5 5.0 n/a Vanguard Target Retirement 2005 US OE Target Date 2000-2010 2.9 73 9.7 79 2.4 19 4.7 20 n/a Vanguard Target 2005 Benchmark 3.0 10.0 2.4 4.6 n/a Lifecycle Funds Vanguard Target Retirement 2010 US OE Target Date 2000-2010 4.6 54 11.4 33 1.8 25 n/a n/a Vanguard Target 2010 Benchmark 4.6 11.6 1.7 n/a n/a Vanguard Target Retirement 2015 US OE Target Date 2011-2015 5.7 46 12.5 34 1.2 23 4.4 8 n/a Vanguard Target 2015 Benchmark 5.8 12.6 1.1 4.4 n/a Vanguard Target Retirement 2020 US OE Target Date 2016-2020 6.7 34 13.1 35 0.5 19 n/a n/a Vanguard Target 2020 Benchmark 6.7 13.3 0.4 n/a n/a Vanguard Target Retirement 2025 US OE Target Date 2021-2025 7.7 46 13.8 37 -0.2 29 3.9 18 n/a Vanguard Target 2025 Benchmark 7.6 13.9 -0.3 3.9 n/a Vanguard Target Retirement 2030 US OE Target Date 2026-2030 8.5 39 14.4 33 -0.9 13 n/a n/a Vanguard Target 2030 Benchmark 8.5 14.5 -1.1 n/a n/a Vanguard Target Retirement 2035 US OE Target Date 2031-2035 9.5 28 15.1 26 -1.2 28 3.6 18 n/a Vanguard Target 2035 Benchmark 9.4 15.2 -1.3 3.6 n/a Vanguard Target Retirement 2040 US OE Target Date 2036-2040 9.5 29 15.2 35 -1.1 11 n/a n/a Vanguard Target 2040 Benchmark 9.5 15.2 -1.3 n/a n/a Vanguard Target Retirement 2045 US OE Target Date 2041-2045 9.5 46 15.2 40 -1.1 23 3.8 20 n/a Vanguard Target 2045 Benchmark 9.5 15.2 -1.3 3.7 n/a Vanguard Target Retirement 2050 US OE Target Date 2050+9.5 41 15.2 35 -1.1 15 n/a n/a Vanguard Target 2050 Benchmark 9.5 15.2 -1.3 n/a n/a f Vanguard LifeStrategy Income US OE Conservative Allocation 1.5 92 9.2 66 3.1 34 4.8 29 4.8 26 Vanguard Income Benchmark 1.4 8.1 4.2 5.0 5.8 Vanguard LifeStrategy Conservative Gr US OE Conservative Allocation 3.9 38 11.1 32 1.5 69 4.4 40 4.4 33 Vanguard Conservative Gr Benchmark 3.7 9.5 2.1 4.1 5.6 Vanguard LifeStrategy Moderate Gr US OE Moderate Allocation 6.0 61 13.3 24 0.1 57 4.0 34 4.1 31 Vanguard Moderate Gr Benchmark 56 11 2 01 33 51 Lifestyle Funds Vanguard Moderate Gr Benchmark 5.6 11.2 0.1 3.3 5.1 Vanguard LifeStrategy Growth US OE Aggressive Allocation 8.4 30 15.1 22 -1.9 67 3.3 50 3.4 56 Vanguard Growth Benchmark 7.9 12.2 -2.3 2.1 3.7 Notes: Performance is net of fees and is annualized for periods longer than one year. Performance is ranked within Morningstar's style-specific universes, where "1" refers to the top percentile and "100" the bottom percentile. US OE = US open ended mutual fund. 4 Performance Summary – Core Options Last One Three Five Ten Periods Ending Quarter Year Years Years Years 31-Dec-10 Universe (%)(%)(%) (%) (%) Vanguard Prime Money Market Inv 0.0 0.1 1.1 2.7 2.4 90 Day T-Bills 0.0 0.1 0.8 2.4 2.4 Vanguard Retirement Savings Trust 0.8 3.0 3.5 3.9 4.3 RL 3yr GIC 0.7 3.4 4.2 4.2 4.5 Capital Preservation Funds y Vanguard Total Bond Market Index Inv US OE Intermediate-Term Bond -1.4 76 6.4 73 5.8 52 5.7 39 5.6 41 BarCap US Agg Bond TR USD -1.3 6.5 5.9 5.8 5.8 Vanguard Balanced Index Inv US OE Moderate Allocation 6.4 44 13.1 27 1.8 17 4.5 24 4.1 29 60% S&P 500-40% BarCap Agg 5.9 12.1 1.1 4.1 3.5 Fixed Income Funds Balanced funds Vanguard 500 Index Investor US OE Large Blend 10.7 43 14.9 31 -2.9 43 2.2 43 1.3 49 S&P 500 TR 10.8 15.1 -2.9 2.3 1.4 Vanguard Windsor II Investor US OE Large Value 9.8 64 10.6 88 -3.8 47 1.5 49 3.6 36 Russell 1000 Value TR USD 10.5 15.5 -4.4 1.3 3.3 Vanguard US Growth Inv US OE Large Growth 13.0 21 11.5 83 -2.2 48 1.0 82 -3.6 97 Large Cap Equity Funds Russell 1000 Growth TR USD 11.8 16.7 -0.5 3.8 0.0 Vanguard Mid Capitalization Index Inv US OE Mid-Cap Blend 13.6 42 25.5 29 0.8 48 4.3 49 6.8 33 MSCI US Mid Cap 450 GR USD 13.6 25.7 0.9 4.4 6.4 Vanguard Small Cap Index Inv US OE Small Blend 15.6 55 27.7 25 3.6 29 5.4 30 7.2 44 MSCI US Small Cap 1750 GR USD 15.6 27.8 3.6 5.4 7.6 Small and Mid Cap Equity Funds Vanguard International Growth Inv US OE Foreign Large Blend 7.2 51 15.7 8 -3.4 12 5.7 11 4.9 21 MSCI AC World Ex USA NR USD 7.2 11.2 -5.0 4.8 5.5 International Equity Funds Notes: Performance is net of fees and is annualized for periods longer than one year. Performance is ranked within Morningstar's style-specific universes, where "1" refers to the top percentile and "100" the bottom percentile. US OE = US open ended mutual fund. Effective June 1,2010, Vanguard International Value Fund changed their benchmark from MSCI EAFE to MSCI AC World Ex USA. 5 Style Analysis The above “snail trail” displays changes to a fund’s style over time as determined by Morningstar’s holdings-based analysis over the prior three years. The smallest circled plot point ep esents the f thest pe iod the la gest ci cled plot point ep esents the plot point represents the furthest period; the largest circled plot point represents the current period. The number of plot points is a function of the frequency of each fund’s release of holdings data. 6 Vanguard Retirement Savings Trust Fixed Income Fund Name:Vanguard Retirement Savings Trust Vehicle Type:Stable Value Inception:1/2/1989 Valuation:103.92 Cditi Rt 358 Characteristics Average Duration: 2.73 Average Quality: Aaa BBB Securities: 0.35% Below Investment Grade Securities: 0 Crediting Rate:3.58 Duration:2.73 Cash Flows YTD:$275,330,718.57 Asset Allocation Traditional Investment Contracts (GICs, BICs, etc): 5.55% Subprime and/or Impaired Exposure: N/A Bank of America IXIS Corp & Inv Bank JPMorgan Chase Prudential Wrap Providers: Constant Duration Contracts (Synthetics): 91.57% Cash Investments: 2.88% Other: 0% Rabobank State Street Bank United of Omaha Preferred Benchmark Citigroup 3-Month T-Bill Index Period  Ending 09/30/2010 7 Vanguard Target Retirement Funds Rl Rt 100% International Equity Cash and Fixed Income Real Return Alternatives 50% 60% 70% 80% 90% 100%%)Domestic Equity 0% 10% 20% 30% 40% 50%(%0% 2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 Income Vanguard Target Retirement Funds Holdings*2050 2040 2030 2020 2010 Income Cash and Fixed Income 10.0 10.0 17.9 32.9 40.4 50.0 Vanguard Total Bond MarketIIIndexFund 10 0 10 0 17 9 32 9 40 2 45 0Vanguard Total Bond Market II Index Fund 10.0 10.0 17.9 32.9 40.2 45.0 Vanguard Prime Money Market Fund 0.0 0.0 0.0 0.0 0.2 5.0 Domestic Equity 63.0 63.0 57.5 47.0 34.5 21.0 Vanguard Total Stock Market Index Fund 63.0 63.0 57.5 47.0 34.5 21.0 International Equity 27.0 27.0 24.6 20.1 14.8 9.0 Vanguard Total International Stock Index Fund 27.0 27.0 24.6 20.1 14.8 9.0 RlRt Alt ti 00 00 00 00 10 4 20 0Real Return Alt ernatives 0.0 0.0 0.0 0.0 10.4 20.0 Vanguard Inflation-Protected Securities Fund 0.0 0.0 0.0 0.0 10.4 20.0 *Holdings shown are targeted allocations for 2011 as reported by Vanguard 8 Vanguard Target Retirement Funds History 2003 2004 2005 2006 2007 2008 2009 2010 Vanguard Retirement Income 6.8 3.3 6.4 8.2 -10.9 14.3 9.4 Bmark 1 6.9 3.4 6.5 8.1 -11.3 14.3 9.4 % Rank Category (2000-2014)42 62 76 3 6 80 42 Vanguard Retirement 2005 7.7 3.6 8.2 8.1 -15.8 16.2 9.7 Bmark 1 7.7 3.8 8.2 8.1 -16.2 16.4 10.0 % Rank Category (2000-2014)21 51 53 4 18 88 79 Vanguard Retirement 2010 7.7 -20.7 19.3 11.4 Bmark 1 7.8 -21.1 19.4 11.6 % Rank Category (2000-2014)6 37 82 33 Vanguard Retirement 2015 9.0 4.9 11.4 7.6 -24.1 21.3 12.5 Bmark 1 9.1 5.0 11.5 7.5 -24.5 21.4 12.6 % Rank Category (2015-2029)46 78 61 32 10 76 34 Vanguard Retirement 2020 7.5 -27.0 23.1 13.1g Bmark 1 7.5 -27.5 23.3 13.3 % Rank Category (2015-2029)34 24 66 35 Vanguard Retirement 2025 10.1 5.5 13.2 7.6 -30.1 24.8 13.8 Bmark 1 10.1 5.5 13.4 7.6 -30.5 25.1 13.9 % Rank Category (2015-2029)23 66 31 31 42 78 37 Vanguard Retirement 2030 7.5 -32.9 26.7 14.4 Bmark 1 7.6 -33.4 27.0 14.5 % R k C t (2030+)38 6 74 33% Rank Category (2030+)38 6 74 33 Vanguard Retirement 2035 12.0 6.3 15.2 7.5 -34.7 28.2 15.1 Bmark 1 11.9 6.5 15.4 7.5 -35.1 28.5 15.2 % Rank Category (2030+)43 87 34 38 16 64 26 Vanguard Retirement 2040 7.5 -34.5 28.3 15.2 Bmark 1 7.5 -35.1 28.5 15.2 % Rank Category (2030+)38 14 77 35 Vanguard Reitrement 2045 12.9 7.0 16.0 7.5 -34.6 28.2 15.2 Bmark 1 13.0 7.0 16.2 7.5 -35.1 28.5 15.2 % Rank Category (2030+)19 75 25 39 15 83 40 Vanguard Retirement 2050 7.5 -34.6 28.3 15.2 Bmark 1 7.5 -35.1 28.5 15.2 % Rank Category (2030+)38 16 91 35 Notes: Performance shown is net of fee. 2009 & 2010 category ranks are representative of the new, broader Morningstar universes implemented in 2009. Bmark 1 is a Composite Weighted Indexes prepared by Vanguard. 9 Morningstar DirectSM | Print Date: 1/20/2011 Page 1 of 1 Vanguard LifeStrategy Income Inv VASIX Currency Morningstar Category USD US OE Conservative Allocation Benchmark 1Vanguard Income Custom Benchmark Investment Growth as of 12/31/2010 22k 19 16 13 10 7 Growth of 10,000 10K line Inv: 17,216.86 Bmark 1: 19,537.13 Performance Quartile(within category)& && ( * ( * & & ) ( 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History 8.06 4.06 0.12 10.77 6.01 3.23 7.93 6.70 -10.53 12.08 9.22 Investment Return -2.60 -4.62 -9.30 3.18 0.91 0.42 1.68 0.49 -4.68 0.88 1.15 +/- Bmark 1 17 9 21 66 49 53 49 16 11 92 66 % Rank Category Equity Style Summary as of 9/30/2010 28.05 29.03 26.78 4.96 4.98 4.05 0.70 0.77 0.70 Val Core Grth Lrg Mid Sm Market Cap % Giant 49.08 Large 34.69 Mid 14.03 Small 1.65 Micro 0.54 Average Mkt Cap (mil) 38,398.36 Value Factors % Price/Earnings 14.13 Price/Book 2.01 Price/Sales 1.26 Price/Cash Flow 5.41 Dividend Yield 2.40 Growth Factors % LT Earn Grth 9.78 Historical Earn Grth -5.49 Book Val Grth -1.00 Sales Grth -2.91 Cash Flow Grth -2.17 Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 9.3 — 10.6 — Software 4.5 — 4.6 — Media 3.1 — 3.6 — Telecom 7.1 — 4.2 — Health Care 11.9 — 13.1 — Cons Svcs 8.6 — 8.3 — Bus Svcs 3.5 — 3.8 — Financial 16.0 — 18.6 — Cons Goods 9.5 — 9.0 — Materials 11.7 — 11.5 — Energy 11.1 — 9.2 — Utilities 3.7 — 3.4 — Morningstar Fixed Income Style BoxTM as of 9/30/2010 Ltd Mod Ext High Med Low Avg Eff Duration 4.13 Avg Eff Maturity 5.64 Avg Credit Quality A Avg Wtd Coupon 4.42 Avg Wtd Price 108.75 Fixed Income Statistics as of 9/30/2010 Avg Eff Duration 4.13 Avg Wtd Coupon 4.42 Avg Eff Maturity 5.64 Avg Wtd Price 108.75 Avg Credit Quality A Data provided by Morningstar 10 Morningstar DirectSM | Print Date: 1/20/2011 Page 1 of 1 Vanguard LifeStrategy Cnsrv Gr Inv VSCGX Currency Morningstar Category USD US OE Conservative Allocation Benchmark 1Vanguard Conservative Growth Custom Benc... Investment Growth as of 12/31/2010 22k 19 16 13 10 7 Growth of 10,000 10K line Inv: 15,892.91 Bmark 1: 18,572.94 Performance Quartile(within category)( (( & & & & & ( ( * 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History 3.12 -0.08 -5.36 16.57 8.02 4.45 10.62 6.99 -19.52 17.06 11.14 Investment Return -5.09 -6.19 -12.36 4.90 1.33 0.88 2.05 1.13 -3.90 1.64 1.69 +/- Bmark 1 58 51 71 20 13 18 12 13 54 75 32 % Rank Category Equity Style Summary as of 9/30/2010 27.34 27.06 25.52 5.44 5.48 4.87 1.39 1.45 1.45 Val Core Grth Lrg Mid Sm Market Cap % Giant 46.71 Large 33.09 Mid 15.87 Small 3.18 Micro 1.15 Average Mkt Cap (mil) 31,041.65 Value Factors % Price/Earnings 13.94 Price/Book 1.93 Price/Sales 1.18 Price/Cash Flow 5.29 Dividend Yield 2.51 Growth Factors % LT Earn Grth 9.96 Historical Earn Grth -12.85 Book Val Grth -34.82 Sales Grth -37.85 Cash Flow Grth -4.17 Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 8.7 — 9.9 — Software 4.2 — 4.3 — Media 2.9 — 3.5 — Telecom 6.5 — 4.6 — Health Care 11.3 — 12.4 — Cons Svcs 8.1 — 8.0 — Bus Svcs 3.7 — 4.2 — Financial 17.0 — 19.4 — Cons Goods 10.4 — 9.3 — Materials 12.7 — 11.8 — Energy 10.7 — 9.0 — Utilities 3.8 — 3.5 — Morningstar Fixed Income Style BoxTM as of 9/30/2010 Ltd Mod Ext High Med Low Avg Eff Duration 3.86 Avg Eff Maturity 5.25 Avg Credit Quality A Avg Wtd Coupon 4.43 Avg Wtd Price 109.00 Fixed Income Statistics as of 9/30/2010 Avg Eff Duration 3.86 Avg Wtd Coupon 4.43 Avg Eff Maturity 5.25 Avg Wtd Price 109.00 Avg Credit Quality A Data provided by Morningstar 11 Morningstar DirectSM | Print Date: 1/20/2011 Page 1 of 1 Vanguard LifeStrategy Moderate Gr Inv VSMGX Currency Morningstar Category USD US OE Moderate Allocation Benchmark 1Vanguard Moderate Growth Custom Benchm... Investment Growth as of 12/31/2010 19k 16 13 10 7 4 Growth of 10,000 10K line Inv: 14,805.98 Bmark 1: 17,392.20 Performance Quartile(within category)( ** * & * & * * ( & 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History -0.88 -4.48 -10.32 22.40 10.57 5.69 13.31 7.36 -26.50 20.33 13.31 Investment Return -6.69 -6.19 -14.77 6.39 1.77 1.25 2.46 1.68 -2.64 2.00 2.11 +/- Bmark 1 60 43 36 29 25 37 17 31 35 74 24 % Rank Category Equity Style Summary as of 9/30/2010 27.08 26.37 25.08 5.61 5.66 5.17 1.63 1.69 1.71 Val Core Grth Lrg Mid Sm Market Cap % Giant 45.87 Large 32.52 Mid 16.52 Small 3.73 Micro 1.37 Average Mkt Cap (mil) 28,817.38 Value Factors % Price/Earnings 13.88 Price/Book 1.90 Price/Sales 1.15 Price/Cash Flow 5.25 Dividend Yield 2.55 Growth Factors % LT Earn Grth 10.03 Historical Earn Grth -14.53 Book Val Grth -39.19 Sales Grth -41.43 Cash Flow Grth -4.79 Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 8.6 — 9.7 — Software 4.1 — 4.3 — Media 2.8 — 3.5 — Telecom 6.4 — 4.7 — Health Care 11.1 — 12.2 — Cons Svcs 7.9 — 7.9 — Bus Svcs 3.7 — 4.3 — Financial 17.4 — 19.8 — Cons Goods 10.7 — 9.4 — Materials 13.0 — 11.8 — Energy 10.6 — 8.8 — Utilities 3.8 — 3.6 — Morningstar Fixed Income Style BoxTM as of 9/30/2010 Ltd Mod Ext High Med Low Avg Eff Duration 4.78 Avg Eff Maturity 6.60 Avg Credit Quality AA Avg Wtd Coupon 4.47 Avg Wtd Price 112.08 Fixed Income Statistics as of 9/30/2010 Avg Eff Duration 4.78 Avg Wtd Coupon 4.47 Avg Eff Maturity 6.60 Avg Wtd Price 112.08 Avg Credit Quality AA Data provided by Morningstar 12 Morningstar DirectSM | Print Date: 1/20/2011 Page 1 of 1 Vanguard LifeStrategy Growth Inv VASGX Currency Morningstar Category USD US OE Aggressive Allocation Benchmark 1Vanguard Growth Custom Benchmark Investment Growth as of 12/31/2010 19k 16 13 10 7 4 Growth of 10,000 10K line Inv: 13,207.81 Bmark 1: 14,286.37 Performance Quartile(within category)) (( & * ( & * ( ) & 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History -5.44 -8.86 -15.84 28.52 12.58 6.88 16.13 7.46 -34.39 24.99 15.06 Investment Return -4.89 -3.19 -13.80 7.92 2.20 1.73 2.90 2.22 -2.24 2.61 2.81 +/- Bmark 1 81 55 73 15 26 55 10 47 52 80 22 % Rank Category Equity Style Summary as of 9/30/2010 26.95 26.02 24.85 5.70 5.76 5.31 1.76 1.81 1.85 Val Core Grth Lrg Mid Sm Market Cap % Giant 45.44 Large 32.24 Mid 16.85 Small 4.00 Micro 1.48 Average Mkt Cap (mil) 27,753.87 Value Factors % Price/Earnings 13.85 Price/Book 1.89 Price/Sales 1.14 Price/Cash Flow 5.23 Dividend Yield 2.57 Growth Factors % LT Earn Grth 10.06 Historical Earn Grth -15.31 Book Val Grth -41.00 Sales Grth -42.95 Cash Flow Grth -5.11 Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 8.5 — 9.6 — Software 4.0 — 4.2 — Media 2.8 — 3.5 — Telecom 6.3 — 5.0 — Health Care 11.0 — 12.0 — Cons Svcs 7.8 — 7.8 — Bus Svcs 3.8 — 4.3 — Financial 17.6 — 19.9 — Cons Goods 10.8 — 9.5 — Materials 13.2 — 11.8 — Energy 10.5 — 8.8 — Utilities 3.8 — 3.6 — Morningstar Fixed Income Style BoxTM as of 9/30/2010 Ltd Mod Ext High Med Low Avg Eff Duration 4.78 Avg Eff Maturity 6.60 Avg Credit Quality AA Avg Wtd Coupon 4.58 Avg Wtd Price 118.71 Fixed Income Statistics as of 9/30/2010 Avg Eff Duration 4.78 Avg Wtd Coupon 4.58 Avg Eff Maturity 6.60 Avg Wtd Price 118.71 Avg Credit Quality AA Data provided by Morningstar 13 Morningstar DirectSM | Print Date: 1/11/2011 Page 1 of 1 Vanguard Total Bond Market Index Inv VBMFX Currency Morningstar Category USD US OE Intermediate-Term Bond Benchmark 1BarCap US Agg Bond TR USD Sector Allocation History as of 9/30/2010 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fixed Income Sectors as of 2010-09-30 % Inv % Category US Credit 19.78 32.43 Non-US Credit 7.15 8.82 Mortgage 28.76 28.20 US Government 44.31 30.55 Cash —— Morningstar Fixed Income Style BoxTM as of 9/30/2010 Ltd Mod Ext High Med Low Avg Eff Duration 4.79 Avg Eff Maturity 6.60 Avg Credit Quality AA Avg Wtd Coupon 4.55 Avg Wtd Price 109.89 Credit Analysis: % Bonds as of 9/30/2010 AAA 75.87 BB 0.00 AA 4.51 B 0.00 A 10.54 Below B 0.00 BBB 9.08 NR/NA 0.00 Top 10 Holdings as of 9/30/2010 % Weighting CMT Market Liquidity Rate 2.95 US Treasury Note 1.875%0.89 US Treasury Note 0.875%0.85 US Treasury Note 0.75%0.83 US Treasury Note 0.75%0.82 US Treasury Bond 6.25%0.77 US Treasury Note 1.375%0.75 GNMA 0.74 US Treasury Note 2.625%0.71 US Treasury Note 2.75%0.69 Total Number of Stock Holdings 0 Total Number of Bond Holdings 13812 Total Number of Holdings 13985 Share Class Net Assets (mil)22,204 Investment Growth as of 12/31/2010 22k 19 16 13 10 7 Growth of 10,000 10K line Inv: 19,158.65 Bmark 1: 19,683.34 Performance Quartile(within category)& &( ( * & * & & ) ( 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History 11.39 8.43 8.26 3.97 4.24 2.40 4.27 6.92 5.05 5.93 6.42 Investment Return -0.23 -0.02 -2.00 -0.13 -0.10 -0.03 -0.07 -0.05 -0.19 0.00 -0.12 +/- Bmark 1 17 24 56 58 38 19 35 11 10 90 73 % Rank Category Maturity Breakdown: % Bonds as of 9/30/2010 1-3 19.69 10-14 4.94 3-5 15.98 15-19 2.16 5-6 10.67 20-29 30.48 7-9 13.69 30+2.40 Data provided by Morningstar 14 Morningstar DirectSM | Print Date: 1/11/2011 Page 1 of 1 Vanguard Balanced Index Inv VBINX Currency Morningstar Category USD US OE Moderate Allocation Benchmark 160% S&P 500-40% BarCap Agg Investment Growth as of 12/31/2010 16k 14 12 10 8 6 Growth of 10,000 10K line Inv: 14,680.63 Bmark 1: 14,009.69 Performance Quartile(within category)( ** * * ( ( * & ) * 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History -2.04 -3.02 -9.52 19.87 9.33 4.65 11.02 6.16 -22.21 20.05 13.13 Investment Return -1.04 0.70 0.30 1.39 1.03 0.65 -0.09 -0.06 -0.14 1.65 1.00 +/- Bmark 1 68 28 28 49 42 56 53 49 13 77 27 % Rank Category Equity Style Summary as of 9/30/2010 23.82 24.58 23.21 6.38 6.78 6.64 2.80 2.85 2.95 Val Core Grth Lrg Mid Sm Market Cap % Giant 40.93 Large 30.53 Mid 19.86 Small 6.46 Micro 2.23 Average Mkt Cap (mil) 24,245.55 Value Factors % Price/Earnings 14.33 Price/Book 1.97 Price/Sales 1.22 Price/Cash Flow 5.29 Dividend Yield 2.40 Growth Factors % LT Earn Grth 10.09 Historical Earn Grth -5.34 Book Val Grth -1.15 Sales Grth -4.36 Cash Flow Grth -1.24 Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 9.9 10.9 10.0 8.9 Software 4.5 4.4 4.6 4.8 Media 3.0 3.1 3.7 3.0 Telecom 5.5 5.3 3.9 6.4 Health Care 11.7 11.4 13.0 13.2 Cons Svcs 8.5 8.5 8.8 8.6 Bus Svcs 4.1 3.1 4.8 3.0 Financial 15.9 16.0 19.4 18.5 Cons Goods 10.8 11.4 8.7 9.4 Materials 11.8 11.4 11.1 11.6 Energy 10.5 11.0 8.7 9.3 Utilities 3.6 3.6 3.3 3.3 Morningstar Fixed Income Style BoxTM as of 9/30/2010 Ltd Mod Ext High Med Low Avg Eff Duration 4.80 Avg Eff Maturity 6.70 Avg Credit Quality AA Avg Wtd Coupon 4.49 Avg Wtd Price 109.66 Fixed Income Statistics as of 9/30/2010 Avg Eff Duration 4.80 Avg Wtd Coupon 4.49 Avg Eff Maturity 6.70 Avg Wtd Price 109.66 Avg Credit Quality AA Data provided by Morningstar 15 Morningstar DirectSM | Print Date: 1/11/2011 Page 1 of 1 Vanguard 500 Index Investor VFINX Currency Morningstar Category USD US OE Large Blend Benchmark 1S&P 500 TR Investment Growth as of 12/31/2010 14k 12 10 8 6 4 Growth of 10,000 10K line Inv: 10,361.17 Bmark 1: 10,459.51 Performance Quartile(within category)( ** * * ( & ( * ( * 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History -9.06 -12.02 -22.15 28.50 10.74 4.77 15.64 5.39 -37.02 26.49 14.91 Investment Return 0.05 -0.14 -0.04 -0.18 -0.14 -0.14 -0.15 -0.11 -0.02 0.02 -0.15 +/- Bmark 1 53 37 41 28 36 60 24 51 38 54 31 % Rank Category Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 10.2 10.9 10.4 8.9 Software 4.4 4.4 4.5 4.8 Media 3.1 3.1 3.5 3.0 Telecom 6.0 5.3 4.6 6.4 Health Care 11.6 11.4 13.1 13.2 Cons Svcs 8.4 8.5 8.5 8.6 Bus Svcs 3.1 3.1 3.2 3.0 Financial 15.7 16.0 18.6 18.5 Cons Goods 11.4 11.4 9.5 9.4 Materials 11.4 11.4 11.6 11.6 Energy 11.0 11.0 9.3 9.3 Utilities 3.6 3.6 3.3 3.3 Equity Style Summary as of 9/30/2010 29.33 30.33 27.87 4.53 4.44 3.28 0.08 0.14 0.02 Val Core Grth Lrg Mid Sm Market Cap % Giant 51.53 Large 35.95 Mid 12.30 Small 0.23 Micro 0.00 Average Mkt Cap (mil) 44,132.67 Value Factors % Price/Earnings 14.07 Price/Book 2.03 Price/Sales 1.27 Price/Cash Flow 5.45 Dividend Yield 2.40 Growth Factors % LT Earn Grth 9.69 Historical Earn Grth -5.55 Book Val Grth -0.95 Sales Grth -2.39 Cash Flow Grth -2.45 Top 10 Holdings as of 9/30/2010 % Weighting ExxonMobil Corporation 3.04 Apple, Inc.2.50 Microsoft Corporation 1.80 General Electric Company 1.68 Johnson & Johnson 1.65 Procter & Gamble Company 1.64 International Business Machines Corp 1.63 AT&T, Inc.1.63 Chevron Corporation 1.57 J.P. Morgan Chase & Co.1.46 Total Number of Stock Holdings 504 Total Number of Bond Holdings — Total Number of Holdings 506 Share Class Net Assets (mil)47,989 Data provided by Morningstar 16 Morningstar DirectSM | Print Date: 1/11/2011 Page 1 of 1 Vanguard Windsor II Investor VWNFX Currency Morningstar Category USD US OE Large Value Benchmark 1Russell 1000 Value TR USD Investment Growth as of 12/31/2010 22k 19 16 13 10 7 Growth of 10,000 10K line Inv: 16,621.54 Bmark 1: 14,746.15 Performance Quartile(within category)& ** * & * * * ( * ) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History 16.86 -3.40 -16.86 30.08 18.31 7.01 18.25 2.23 -36.70 27.05 10.62 Investment Return 9.85 2.19 -1.34 0.05 1.82 -0.04 -4.00 2.40 0.15 7.36 -4.89 +/- Bmark 1 14 38 35 33 7 34 50 47 53 28 88 % Rank Category Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 8.9 1.8 4.4 2.7 Software 3.8 1.8 1.7 1.3 Media 2.2 4.7 2.1 4.2 Telecom 3.6 6.5 4.1 7.1 Health Care 13.7 13.3 10.2 6.5 Cons Svcs 7.6 3.9 5.6 4.4 Bus Svcs 1.4 2.6 2.9 2.1 Financial 19.2 27.1 24.3 31.5 Cons Goods 10.4 10.3 11.7 9.5 Materials 14.0 9.5 12.7 11.0 Energy 11.0 11.3 11.9 13.4 Utilities 4.2 7.2 8.5 6.3 Equity Style Summary as of 9/30/2010 38.51 32.90 14.95 5.13 8.19 0.27 0.02 0.02 0.02 Val Core Grth Lrg Mid Sm Market Cap % Giant 50.78 Large 35.49 Mid 13.68 Small 0.04 Micro 0.01 Average Mkt Cap (mil) 41,380.77 Value Factors % Price/Earnings 12.32 Price/Book 1.74 Price/Sales 1.19 Price/Cash Flow 3.64 Dividend Yield 2.60 Growth Factors % LT Earn Grth 9.33 Historical Earn Grth -5.99 Book Val Grth 1.20 Sales Grth -1.46 Cash Flow Grth 2.46 Top 10 Holdings as of 9/30/2010 % Weighting International Business Machines Corp 3.42 ConocoPhillips 3.28 Pfizer Inc.2.78 J.P. Morgan Chase & Co.2.71 Wells Fargo Company 2.67 CMT Market Liquidity Rate 2.61 Microsoft Corporation 2.60 Bristol-Myers Squibb Company 2.45 Philip Morris International Inc 2.27 Raytheon Company 2.17 Total Number of Stock Holdings 241 Total Number of Bond Holdings — Total Number of Holdings 246 Share Class Net Assets (mil)20,738 Data provided by Morningstar 17 Morningstar DirectSM | Print Date: 1/11/2011 Page 1 of 1 Vanguard US Growth Inv VWUSX Currency Morningstar Category USD US OE Large Growth Benchmark 1Russell 1000 Growth TR USD Investment Growth as of 12/31/2010 12k 10 8 6 4 2 Growth of 10,000 10K line Inv: 5,509.68 Bmark 1: 7,771.08 Performance Quartile(within category)) )) ( ( & ) ( * * ) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History -20.17 -31.70 -35.80 26.10 7.03 11.15 1.77 10.15 -37.82 34.95 11.53 Investment Return 2.26 -11.27 -7.92 -3.65 0.73 5.89 -7.31 -1.66 0.62 -2.25 -5.18 +/- Bmark 1 79 85 92 58 55 18 88 68 28 47 83 % Rank Category Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 16.0 19.2 19.0 15.8 Software 8.2 7.1 6.7 8.1 Media 3.1 1.8 4.6 2.5 Telecom 7.4 3.6 2.7 3.3 Health Care 10.7 9.6 22.2 19.4 Cons Svcs 11.5 13.0 9.6 12.7 Bus Svcs 4.1 4.7 2.2 4.7 Financial 11.6 5.4 14.3 7.5 Cons Goods 9.4 11.4 5.3 10.6 Materials 11.2 14.2 9.0 10.8 Energy 6.7 9.9 4.1 4.0 Utilities 0.0 0.1 0.4 0.8 Equity Style Summary as of 9/30/2010 4.76 20.67 61.37 0.49 4.50 8.21 0.00 0.00 0.00 Val Core Grth Lrg Mid Sm Market Cap % Giant 42.75 Large 44.04 Mid 13.20 Small 0.00 Micro 0.00 Average Mkt Cap (mil) 35,442.93 Value Factors % Price/Earnings 17.30 Price/Book 2.69 Price/Sales 2.03 Price/Cash Flow 6.52 Dividend Yield 1.53 Growth Factors % LT Earn Grth 13.39 Historical Earn Grth 0.48 Book Val Grth 10.78 Sales Grth -0.96 Cash Flow Grth 0.74 Top 10 Holdings as of 9/30/2010 % Weighting Apple, Inc.5.80 Google, Inc.3.57 CMT Market Liquidity Rate 3.50 Qualcomm, Inc.3.33 Microsoft Corporation 2.71 Schlumberger, Ltd.2.46 EMC Corporation 2.09 Alcon, Inc.2.06 Priceline.com, Inc.1.98 eBay, Inc.1.96 Total Number of Stock Holdings 126 Total Number of Bond Holdings — Total Number of Holdings 129 Share Class Net Assets (mil)2,916 Data provided by Morningstar 18 Morningstar DirectSM | Print Date: 1/11/2011 Page 1 of 1 Vanguard Mid Capitalization Index Inv VIMSX Currency Morningstar Category USD US OE Mid-Cap Blend Benchmark 1MSCI US Mid Cap 450 GR USD Investment Growth as of 12/31/2010 26k 22 18 14 10 6 Growth of 10,000 10K line Inv: 22,748.64 Bmark 1: 18,192.45 Performance Quartile(within category)& ** ( & & * * ( & * 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History 18.10 -0.50 -14.61 34.14 20.35 13.93 13.60 6.02 -41.82 40.22 25.46 Investment Return 19.95 5.88 1.85 -4.91 -0.17 -0.01 -0.15 -0.17 -0.02 -0.27 -0.23 +/- Bmark 1 18 36 41 55 19 13 46 44 69 25 29 % Rank Category Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 7.6 — 9.0 — Software 5.2 — 4.6 — Media 3.6 — 2.6 — Telecom 2.6 — 2.0 — Health Care 9.8 — 11.0 — Cons Svcs 10.4 — 9.9 — Bus Svcs 5.5 — 8.3 — Financial 17.1 — 18.6 — Cons Goods 9.8 — 8.0 — Materials 14.5 — 10.4 — Energy 8.4 — 9.2 — Utilities 5.6 — 6.4 — Equity Style Summary as of 9/30/2010 0.24 1.13 5.04 30.78 30.97 30.74 0.52 0.37 0.19 Val Core Grth Lrg Mid Sm Market Cap % Giant 0.00 Large 6.37 Mid 92.54 Small 1.09 Micro 0.00 Average Mkt Cap (mil) 5,348.35 Value Factors % Price/Earnings 15.73 Price/Book 1.91 Price/Sales 1.06 Price/Cash Flow 6.19 Dividend Yield 2.06 Growth Factors % LT Earn Grth 10.97 Historical Earn Grth -1.49 Book Val Grth -3.46 Sales Grth -4.02 Cash Flow Grth 5.83 Top 10 Holdings as of 9/30/2010 % Weighting Priceline.com, Inc.0.78 Salesforce.com, Inc.0.64 Citrix Systems, Inc.0.62 Mead Johnson Nutrition Company 0.57 HCP, Inc.0.52 Cameron International Corporation 0.52 Starwood Hotels & Resorts Worldwide, Inc.0.49 Dover Corporation 0.48 Hospira, Inc.0.47 Goodrich Corporation 0.45 Total Number of Stock Holdings 457 Total Number of Bond Holdings — Total Number of Holdings 459 Share Class Net Assets (mil)7,607 Data provided by Morningstar 19 Morningstar DirectSM | Print Date: 1/11/2011 Page 1 of 1 Vanguard Small Cap Index Inv NAESX Currency Morningstar Category USD US OE Small Blend Benchmark 1MSCI US Small Cap 1750 GR USD Investment Growth as of 12/31/2010 26k 22 18 14 10 6 Growth of 10,000 10K line Inv: 19,563.11 Bmark 1: 22,645.20 Performance Quartile(within category)) (( * * * * * ( * & 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History -2.67 3.10 -20.02 45.63 19.90 7.36 15.66 1.16 -36.07 36.12 27.72 Investment Return -11.34 -0.12 -1.66 -1.76 -0.11 -0.12 -0.11 -0.05 0.13 -0.03 -0.10 +/- Bmark 1 85 73 71 36 43 42 42 30 53 26 25 % Rank Category Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 8.2 — 8.4 — Software 6.1 — 4.9 — Media 1.6 — 1.7 — Telecom 3.3 — 2.2 — Health Care 9.8 — 11.7 — Cons Svcs 8.9 — 9.7 — Bus Svcs 8.5 — 10.1 — Financial 20.6 — 21.1 — Cons Goods 10.4 — 6.3 — Materials 13.2 — 14.2 — Energy 5.7 — 5.6 — Utilities 3.6 — 4.2 — Equity Style Summary as of 9/30/2010 0.00 0.00 0.00 5.60 9.17 13.49 22.71 23.75 25.29 Val Core Grth Lrg Mid Sm Market Cap % Giant 0.00 Large 0.00 Mid 28.00 Small 56.34 Micro 15.67 Average Mkt Cap (mil) 1,285.18 Value Factors % Price/Earnings 16.72 Price/Book 1.65 Price/Sales 0.97 Price/Cash Flow 5.43 Dividend Yield 2.43 Growth Factors % LT Earn Grth 12.21 Historical Earn Grth -4.98 Book Val Grth -4.32 Sales Grth -10.70 Cash Flow Grth 1.96 Top 10 Holdings as of 9/30/2010 % Weighting CMT Market Liquidity Rate 0.34 Core Laboratories N.V.0.28 Alexandria Real Estate Equities, Inc.0.27 MSCI Inc 0.26 Atmel Corporation 0.26 Skyworks Solutions, Inc.0.26 Jones Lang LaSalle, Inc.0.26 Herbalife, Ltd.0.25 Informatica Corporation 0.25 Phillips-Van Heusen Corporation 0.25 Total Number of Stock Holdings 1727 Total Number of Bond Holdings — Total Number of Holdings 1732 Share Class Net Assets (mil)6,781 Data provided by Morningstar 20 Morningstar DirectSM | Print Date: 1/14/2011 Page 1 of 1 Vanguard International Growth Inv VWIGX Currency Morningstar Category USD US OE Foreign Large Blend Benchmark 1MSCI AC World Ex USA NR USD Investment Growth as of 12/31/2010 19k 16 13 10 7 4 Growth of 10,000 10K line Inv: 14,761.82 Bmark 1: 14,526.69 Performance Quartile(within category)& *( * * * * & ( & & 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-12 History -8.60 -18.92 -17.79 34.45 18.95 15.00 25.92 15.98 -44.94 41.63 15.66 Investment Return 6.71 0.82 -2.84 -6.38 -1.95 -1.62 -0.73 -0.67 0.59 0.18 4.51 +/- Bmark 1 11 28 62 39 30 39 37 22 62 10 8 % Rank Category Equity Style Summary as of 9/30/2010 19.40 26.19 43.64 3.60 2.79 4.15 0.23 0.00 0.00 Val Core Grth Lrg Mid Sm Market Cap % Giant 58.14 Large 31.34 Mid 10.30 Small 0.23 Micro 0.00 Average Mkt Cap (mil) 27,842.37 Value Factors % Price/Earnings 14.03 Price/Book 1.94 Price/Sales 1.02 Price/Cash Flow 5.76 Dividend Yield 2.55 Growth Factors % LT Earn Grth 12.46 Historical Earn Grth -5.98 Book Val Grth -18.38 Sales Grth -9.02 Cash Flow Grth 2.66 Historical Equity Sectors 2000-10-31 to 2010-09-30 100% 75 50 25 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Most Recent %Average % Subject B1 Subject B1 Hardware 2.9 — 3.8 — Software 2.8 — 1.4 — Media 0.3 — 2.5 — Telecom 5.0 — 6.1 — Health Care 6.8 — 7.3 — Cons Svcs 8.8 — 8.0 — Bus Svcs 3.6 — 5.7 — Financial 22.3 — 22.5 — Cons Goods 14.4 — 16.4 — Materials 23.5 — 17.1 — Energy 7.9 — 6.5 — Utilities 1.9 — 2.6 — Region Exposure as of 9/30/2010 % Greater Asia 36.12 Japan 11.93 Australasia 4.59 Asia Developed 7.29 Asia Emerging 12.31 Americas 9.98 North America 1.57 Latin America 8.40 Greater Europe 53.89 United Kingdom 17.59 Europe Developed 32.89 Europe Emerging 1.50 Africa/Middle East 1.92 Data provided by Morningstar 21 Appendix •NEPC uses, as a data source, the plan’s custodian bank or service provider for asset balances, calculation of accruals, transfers, exchanges and contribution deferral information. While NEPC has exercised reasonable professional care in preparing this report, we cannot guarantee the accuracy of all source information contained within. •This report is provided as a management aid for the client’s internal use only. Fund performance contained in this report does not constitute a recommendation by NEPC. •Information in this report on fund returns, market indices and security characteristics is received from sources external to NEPC. While efforts are made to ensure that this external data is accurate, NEPC cannot accept responsibility for errors that may occur.that may occur. •(c) Morningstar 2008. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial e c uded by a you ju sd ct o ast a c a performance is no guarantee of future results. 22