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HomeMy Public PortalAbout2011 2nd Quarter ReportDefined Contribution Plan Second Quarter 2011 Executive Summary August 2011 Kristen Colvin, CAIA, Consultant Michael J. Valchine, CAIA, Consultant Kristen Finney-Cooke, CAIA, Senior Consultant Kim Kaczor, Senior Analyst Q2 2011: Capital Markets Summary Qtr. Ytd 1 Yr.3 Yr.5 Yr.10 Yr. World Equity Benchmarks MSCI World World 0.5% 5.3% 30.5% 0.5% 2.3% 4.0% Qtr. Ytd 1 Yr.3 Yr.5 Yr.10 Yr. Domestic Equity Benchmarks S&P 500 Large Core 0.1% 6.0% 30.7% 3.3% 2.9% 2.7% Russell 1000 Large Core 0.1% 6.4% 31.9% 3.7% 3.3% 3.2% Russell 1000 Growth Large Growth 0.8% 6.8% 35.0% 5.0% 5.3% 2.2% Russell 1000 Value Large Value -0.5%5.9% 28.9% 2.3% 1.2% 4.0% S&P Mid Cap 400 Mid Core -0.7%8.6% 39.4% 7.8% 6.6% 7.9% Russell 2000 Small Core -1.6%6.2% 37.4% 7.8% 4.1% 6.3% Russell 2000 Growth Small Growth -0.6%8.6% 43.5% 8.4% 5.8% 4.6% Russell 2000 Value Small Value -2.6%3.8% 31.4% 7.1% 2.2% 7.5% NAREIT All Composite REIT 2.9% 10.1% 33.1% 5.7% 1.7% 10.0% Qtr. Ytd 1 Yr.3 Yr.5 Yr.10 Yr. International Equity Benchmarks MSCI EAFE Int'l Developed 1.6% 5.0% 30.4%-1.8%1.5% 5.7% MSCI EME Em. Mkt. Eqty. -1.1%0.9% 27.8% 4.2% 11.4% 16.2% MSCI ACWI ex US International 0.4% 3.8% 29.7%-0.3%3.7% 7.5% S&P EPAC SmallCap Small Cap Int'l 2.0% 6.4% 37.3% 2.3% 3.7% 10.4% Qtr. Ytd 1 Yr.3 Yr.5 Yr.10 Yr. Domestic Fixed Income Benchmarks Barclays Aggregate Core Bonds 2.3% 2.7% 3.9% 6.5% 6.5% 5.7% Barclays High Yield High Yield 1.1% 5.0% 15.6% 12.7% 9.3% 9.0% Barclays 1-10 Muni. Municipal Bond 2.5% 3.2% 3.7% 5.5% 5.2% 4.6% Barclays 1-10 TIPS Inflation 3.0% 5.4% 7.5% 4.6% 6.5% 6.4% 90 Day T-Bill Cash 0.0% 0.1% 0.2% 0.4% 2.0% 2.1% Qtr. Ytd 1 Yr.3 Yr.5 Yr.10 Yr. Global Fixed Income Benchmarks Citigroup World Govt Bond Global Bonds 3.3% 4.0% 10.5% 5.8% 7.3% 7.9% J.P. Morgan EMBI Plus Em. Mkt. Bonds 0.7% 5.0% 8.7% 8.4% 8.2% 10.4% Qtr. Ytd 1 Yr.3 Yr.5 Yr.10 Yr. Diversified Benchmark Balanced Index *Diversified 1.0% 5.1% 23.3% 4.8% 4.6% 5.7% * 35% LC, 10% SC, 12% Int'l, 3% Emerging, 25% FI, 5% HY, 5% Global FI, 5% REITS 1 2nd Quarter 2011: Summary and Discussion •2nd Quarter Markets –The second quarter of 2011 was dominated by macro-economic concerns including: •Slowing growth and high unemployment in the US •The end of monetary stimulus (QE2) •The impending US debt ceiling •The rolling peripheral European debt crisis •Elevated commodities prices –As a result, equity markets produced tepid (albeit volatile) returns while bond markets posted positive results as interest rates fell •Plan Results –Plan assets increased to $33.1 million from $32.9 million •Eighty four percent (84%) of assets were invested in the Core Options and 13% were invested in lifestyle and lifecycle funds –Lifecycle and lifestyle options •Vanguard Target Retirement (lifecycle) fund returns ranged from 0.4% to - 1.8% •Vanguard LifeStrategy (lifestyle) fund returns ranged from 0.1% to -8.7% for the quarter –Core options •All funds were in positive territory except small and mid cap equity funds with returns ranged from -0.2% to -1.2% •Fixed income funds (2.2%) were the strongest performers followed by international equity funds (1.6%) 2 Asset Summary 3 Performance Summary – Target Date 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. Last Year to One Three Five Ten Periods Ending Quarter Date Year Years Years Years 30-Jun-11 Universe (%) (%) (%) (%) (%) (%) Vanguard Target Retirement Income Inv US OE Retirement Income 1.7 10 3.9 26 12.3 63 5.6 16 5.9 9 n/a Vanguard Retirement Income Benchmark 1.8 4.1 12.5 5.5 5.9 n/a Vanguard Target Retirement 2020 Inv US OE Target Date 2016-2020 1.0 42 4.7 31 22.1 36 4.7 14 4.8 12 n/a Vanguard Target 2020 Benchmark 0.8 4.6 22.2 4.5 4.7 n/a Vanguard Target Retirement 2025 Inv US OE Target Date 2021-2025 0.8 38 4.8 38 24.3 54 4.4 16 4.5 17 n/a Vanguard Target 2025 Benchmark 0.7 4.8 24.3 4.2 4.4 n/a Vanguard Target Retirement 2030 Inv US OE Target Date 2026-2030 0.6 48 5.1 29 26.5 44 4.0 12 4.2 14 n/a Vanguard Target 2030 Benchmark 0.5 5.0 26.4 3.9 4.1 n/a Vanguard Target Retirement 2035 Inv US OE Target Date 2031-2035 0.4 46 5.3 28 28.7 32 4.0 19 4.1 17 n/a Vanguard Target 2035 Benchmark 0.4 5.2 28.6 3.8 4.0 n/a Vanguard Target Retirement 2040 Inv US OE Target Date 2036-2040 0.4 45 5.3 28 28.9 33 4.1 14 4.1 12 n/a Vanguard Target 2040 Benchmark 0.3 5.2 28.7 3.8 4.0 n/a Vanguard Target Retirement 2045 Inv US OE Target Date 2041-2045 0.4 39 5.3 35 29.0 57 4.0 18 4.1 17 n/a Vanguard Target 2045 Benchmark 0.3 5.2 28.7 3.8 4.0 n/a Vanguard Target Retirement 2050 Inv US OE Target Date 2050+0.4 46 5.3 38 28.9 62 4.0 18 4.1 1 n/a Vanguard Target 2050 Benchmark 0.3 5.2 28.7 3.8 4.0 n/a Vanguard LifeStrategy Income Inv US OE Conservative Allocation 1.5 14 3.1 76 9.6 91 5.1 52 5.2 30 4.9 29 Vanguard Income Benchmark 1.5 3.1 8.8 5.7 5.6 5.8 Vanguard LifeStrategy Cnsrv Gr Inv US OE Conservative Allocation 1.1 40 3.8 46 15.2 42 4.6 62 4.8 44 4.9 31 Vanguard Conservative Gr Benchmark 1.0 3.5 13.8 4.7 4.6 5.7 Vanguard LifeStrategy Moderate Gr Inv US OE Moderate Allocation 1.0 18 4.6 36 21.0 47 4.3 49 4.4 37 4.9 30 Vanguard Moderate Gr Benchmark 0.7 4.1 19.0 3.8 3.7 5.6 Vanguard LifeStrategy Growth Inv US OE Aggressive Allocation 0.5 33 5.1 35 26.7 27 3.3 48 3.6 45 4.5 39 Vanguard Growth Benchmark 0.2 4.5 24.2 2.4 2.5 4.7 Lifestyle Funds Lifecycle Funds 4 Performance Summary – Core Options 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 Growth Fund changed their benchmark from MSCI EAFE to MSCI AC World Ex USA. Last Year to One Three Five Ten Periods Ending Quarter Date Year Years Years Years 30-Jun-11 Universe (%) (%) (%) (%) (%) (%) Vanguard Prime Money Market Inv 0.0 0.0 0.1 0.6 2.2 2.1 BofAML US Treasury Bill 3 Mon 0.0 0.1 0.2 0.4 2.0 2.1 Vanguard Retirement Savings Trust 0.8 1.5 3.0 3.2 3.7 4.1 RL 3yr GIC 0.6 1.3 2.9 3.9 4.1 4.3 Vanguard Total Bond Market Index Inv US OE Intermediate-Term Bond 2.2 17 2.5 72 3.5 82 6.3 62 6.4 42 5.4 46 BarCap US Agg Bond TR USD 2.3 2.7 3.9 6.5 6.5 5.7 Vanguard Balanced Index Inv US OE Moderate Allocation 0.9 21 4.9 27 20.3 55 5.7 21 5.1 20 4.8 33 60% S&P 500-40% BarCap Agg 1.0 4.7 19.6 5.1 4.8 4.3 Vanguard Windsor II Investor US OE Large Value 0.4 32 6.9 26 29.5 40 3.5 34 2.0 41 4.1 33 Russell 1000 Value TR USD -0.5 5.9 28.9 2.3 1.2 4.0 Vanguard 500 Index Investor US OE Large Blend 0.1 40 6.0 37 30.5 38 3.3 35 2.9 39 2.6 45 S&P 500 TR 0.1 6.0 30.7 3.3 2.9 2.7 Vanguard US Growth Inv US OE Large Growth 1.1 24 7.1 25 33.8 41 3.7 41 3.6 55 0.0 93 Russell 1000 Growth TR USD 0.8 6.8 35.0 5.0 5.3 2.2 Vanguard Mid Cap Index Inv US OE Mid-Cap Blend -0.2 37 8.0 39 38.4 33 6.3 44 5.0 43 7.5 24 MSCI US Mid Cap 450 GR USD -0.1 8.1 38.7 6.4 5.1 7.2 Vanguard Small Cap Index Inv US OE Small Blend -1.2 47 7.5 33 39.3 28 9.2 24 5.5 24 7.2 43 MSCI US Small Cap 1750 GR USD -1.2 7.6 39.4 9.2 5.5 7.9 Vanguard International Growth Inv US OE Foreign Large Blend 1.6 43 4.9 39 34.7 15 1.9 10 4.7 11 7.0 15 MSCI AC World Ex USA NR USD 0.4 3.8 29.7 -0.3 3.7 7.5 Capital Preservation Funds Fixed Income Funds Balanced funds Large Cap Equity Funds Small and Mid Cap Equity Funds International Equity Funds 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 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 Fund Name:Vanguard Retirement Savings Trust Vehicle Type:Pooled Fund Inception:01/02/1989 MV/BV:104.28% Total AUM:$9.6 billion Net Yield:3.03% Wrap Providers:Rabobank JPMorgan Chase State Street Bank Bank of America Prudential IXIS Corp. & Inv. Bank United of Omaha Manager’s Preferred Benchmark: Citigroup 3-Month T-Bill Index Asset Allocation (%) Traditional Investment Contracts (GICs, BICs, etc.): 4.8% Constant Duration Contracts (Synthetics): 89.2% Cash Investments: 6.0% Fixed Income Characteristics Average Duration:2.8 years Average Quality:Aaa BBB Securities: 0% Below Investment Grade Securities:0% Data Provided by Vanguard as of 6/30/11. 7 Vanguard Target Retirement Funds *Holdings shown are targeted allocations for 2011 as reported by Vanguard Domestic Equity International Equity Cash and Fixed Income Real Return Alternatives 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 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 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 Real Return Alternatives 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 8 Vanguard Target Retirement Funds 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. 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 13.1 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 % 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 9 Morningstar DirectSM | Print Date: 7/29/2011 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 6/30/2011 22k 19 16 13 10 7 Growth of 10,000 10K line Inv: 16,427.55 Bmark 1: 18,194.83 Performance Quartile(within category)&& ( * ( * & & ) ( ) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History 4.06 0.12 10.77 6.01 3.23 7.93 6.70 -10.53 12.08 9.22 3.11 Investment Return -4.62 -9.30 3.18 0.91 0.42 1.68 0.49 -4.68 0.88 1.15 0.05 +/- Bmark 1 9 21 66 49 53 49 16 11 92 66 76 % Rank Category Equity Style Summary as of 3/31/2011 29.13 28.17 27.13 5.23 4.57 3.69 0.88 0.62 0.59 Val Core Grth Lrg Mid Sm Market Cap % Giant 49.29 Large 34.98 Mid 13.59 Small 1.71 Micro 0.43 Average Mkt Cap (mil) 36,625.82 Value Factors % Price/Earnings 13.43 Price/Book 1.94 Price/Sales 1.16 Price/Cash Flow 6.49 Dividend Yield 2.33 Growth Factors % LT Earn Grth 10.16 Historical Earn Grth 2.93 Book Val Grth -30.80 Sales Grth -52.79 Cash Flow Grth -16.43 Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Basic Matls 6.1 — 10.2 — Consumer Cycl 9.4 — 4.1 — Financial Svs 16.0 — 15.8 — Real Estate 2.2 — 0.9 — Consumer Def 9.9 — 11.2 — Healthcare 9.5 — 12.4 — Utilities 3.3 — 3.8 — Commun Svs 4.6 — 5.3 — Energy 12.2 — 10.3 — Industrials 13.0 — 12.2 — Technology 13.9 — 14.0 — Morningstar Fixed Income Style BoxTM as of 3/31/2011 Ltd Mod Ext High Med Low Avg Eff Duration 4.28 Avg Eff Maturity 6.05 Avg Credit Quality A Avg Wtd Coupon 4.24 Avg Wtd Price 105.20 Fixed Income Statistics as of 3/31/2011 Avg Eff Duration 4.28 Avg Wtd Coupon 4.24 Avg Eff Maturity 6.05 Avg Wtd Price 105.20 Avg Credit Quality A Data provided by Morningstar 10 Morningstar DirectSM | Print Date: 7/19/2011 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 6/30/2011 22k 19 16 13 10 7 Growth of 10,000 10K line Inv: 15,994.04 Bmark 1: 17,764.28 Performance Quartile(within category)(( & & & & & ( ( * * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -0.08 -5.36 16.57 8.02 4.45 10.62 6.99 -19.52 17.06 11.14 3.77 Investment Return -6.19 -12.36 4.90 1.33 0.88 2.05 1.13 -3.90 1.64 1.69 0.28 +/- Bmark 1 51 71 20 13 18 12 13 54 75 32 46 % Rank Category Equity Style Summary as of 3/31/2011 27.54 26.33 25.72 5.73 5.29 4.82 1.71 1.44 1.43 Val Core Grth Lrg Mid Sm Market Cap % Giant 46.18 Large 33.25 Mid 15.94 Small 3.52 Micro 1.11 Average Mkt Cap (mil) 30,741.51 Value Factors % Price/Earnings 13.56 Price/Book 1.93 Price/Sales 1.15 Price/Cash Flow 6.47 Dividend Yield 2.35 Growth Factors % LT Earn Grth 10.27 Historical Earn Grth 2.38 Book Val Grth -31.09 Sales Grth -52.93 Cash Flow Grth -16.96 Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Basic Matls 6.4 — 10.3 — Consumer Cycl 9.7 — 4.6 — Financial Svs 15.7 — 16.4 — Real Estate 2.6 — 1.2 — Consumer Def 9.5 — 10.7 — Healthcare 9.5 — 11.7 — Utilities 3.4 — 4.1 — Commun Svs 4.5 — 5.4 — Energy 11.9 — 10.0 — Industrials 13.1 — 12.3 — Technology 13.9 — 13.2 — Morningstar Fixed Income Style BoxTM as of 3/31/2011 Ltd Mod Ext High Med Low Avg Eff Duration 3.93 Avg Eff Maturity 5.56 Avg Credit Quality A Avg Wtd Coupon 4.23 Avg Wtd Price 105.03 Fixed Income Statistics as of 3/31/2011 Avg Eff Duration 3.93 Avg Wtd Coupon 4.23 Avg Eff Maturity 5.56 Avg Wtd Price 105.03 Avg Credit Quality A Data provided by Morningstar 11 Morningstar DirectSM | Print Date: 7/19/2011 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 6/30/2011 19k 16 13 10 7 4 Growth of 10,000 10K line Inv: 15,622.64 Bmark 1: 17,116.04 Performance Quartile(within category)** * & * & * * ( & * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -4.48 -10.32 22.40 10.57 5.69 13.31 7.36 -26.50 20.33 13.31 4.58 Investment Return -6.19 -14.77 6.39 1.77 1.25 2.46 1.68 -2.64 2.00 2.11 0.45 +/- Bmark 1 43 36 29 25 37 17 31 35 74 24 36 % Rank Category Equity Style Summary as of 3/31/2011 26.94 25.64 25.20 5.91 5.57 5.25 2.02 1.74 1.74 Val Core Grth Lrg Mid Sm Market Cap % Giant 45.01 Large 32.60 Mid 16.83 Small 4.20 Micro 1.36 Average Mkt Cap (mil) 28,815.34 Value Factors % Price/Earnings 13.61 Price/Book 1.93 Price/Sales 1.15 Price/Cash Flow 6.47 Dividend Yield 2.36 Growth Factors % LT Earn Grth 10.31 Historical Earn Grth 2.26 Book Val Grth -31.07 Sales Grth -52.87 Cash Flow Grth -17.06 Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Basic Matls 6.5 — 10.3 — Consumer Cycl 9.8 — 4.9 — Financial Svs 15.6 — 16.7 — Real Estate 2.7 — 1.4 — Consumer Def 9.3 — 10.6 — Healthcare 9.5 — 11.5 — Utilities 3.4 — 4.2 — Commun Svs 4.5 — 5.5 — Energy 11.8 — 9.8 — Industrials 13.2 — 12.2 — Technology 13.9 — 12.9 — Morningstar Fixed Income Style BoxTM as of 3/31/2011 Ltd Mod Ext High Med Low Avg Eff Duration 5.11 Avg Eff Maturity 7.20 Avg Credit Quality AA Avg Wtd Coupon 4.29 Avg Wtd Price 105.72 Fixed Income Statistics as of 3/31/2011 Avg Eff Duration 5.11 Avg Wtd Coupon 4.29 Avg Eff Maturity 7.20 Avg Wtd Price 105.72 Avg Credit Quality AA Data provided by Morningstar 12 Morningstar DirectSM | Print Date: 7/19/2011 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 6/30/2011 19k 16 13 10 7 4 Growth of 10,000 10K line Inv: 14,680.72 Bmark 1: 15,018.32 Performance Quartile(within category)(( & * ( & * ( ) & * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -8.86 -15.84 28.52 12.58 6.88 16.13 7.46 -34.39 24.99 15.06 5.11 Investment Return -3.19 -13.80 7.92 2.20 1.73 2.90 2.22 -2.24 2.61 2.81 0.56 +/- Bmark 1 55 73 15 26 55 10 47 52 80 22 35 % Rank Category Equity Style Summary as of 3/31/2011 26.63 25.28 24.93 6.01 5.71 5.47 2.17 1.90 1.91 Val Core Grth Lrg Mid Sm Market Cap % Giant 44.41 Large 32.27 Mid 17.28 Small 4.55 Micro 1.49 Average Mkt Cap (mil) 27,863.94 Value Factors % Price/Earnings 13.64 Price/Book 1.93 Price/Sales 1.14 Price/Cash Flow 6.47 Dividend Yield 2.36 Growth Factors % LT Earn Grth 10.34 Historical Earn Grth 2.18 Book Val Grth -31.10 Sales Grth -52.87 Cash Flow Grth -17.15 Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Basic Matls 6.5 — 10.4 — Consumer Cycl 9.8 — 5.0 — Financial Svs 15.5 — 16.9 — Real Estate 2.8 — 1.4 — Consumer Def 9.2 — 10.5 — Healthcare 9.4 — 11.4 — Utilities 3.4 — 4.2 — Commun Svs 4.5 — 5.5 — Energy 11.7 — 9.7 — Industrials 13.2 — 12.2 — Technology 13.9 — 12.8 — Morningstar Fixed Income Style BoxTM as of 3/31/2011 Ltd Mod Ext High Med Low Avg Eff Duration 5.11 Avg Eff Maturity 7.20 Avg Credit Quality AA Avg Wtd Coupon 4.33 Avg Wtd Price 105.91 Fixed Income Statistics as of 3/31/2011 Avg Eff Duration 5.11 Avg Wtd Coupon 4.33 Avg Eff Maturity 7.20 Avg Wtd Price 105.91 Avg Credit Quality AA Data provided by Morningstar 13 Morningstar DirectSM | Print Date: 7/28/2011 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 3/31/2011 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fixed Income Sectors as of 2011-03-31 % Inv % Category US Credit 19.91 36.37 Non-US Credit 7.50 9.70 Mortgage 30.21 34.74 US Government 42.39 19.19 Cash —— Morningstar Fixed Income Style BoxTM as of 3/31/2011 Short Int Long High Med Low Avg Eff Duration 5.11 Avg Eff Maturity 7.20 Avg Credit Quality AA Avg Wtd Coupon 4.45 Avg Wtd Price 106.34 Credit Analysis: % Bonds as of 3/31/2011 AAA 75.15 BB 0.00 AA 4.89 B 0.00 A 10.38 Below B 0.01 BBB 9.57 NR/NA 0.00 Top 10 Holdings as of 3/31/2011 % Weighting CMT Market Liquidity Rate 2.94 US Treasury Note 1.75%1.11 US Treasury Bond 6.25%0.88 US Treasury Note 0.375%0.88 US Treasury Note 1.375%0.85 US Treasury Note 0.75%0.83 US Treasury Note 1.875%0.82 US Treasury Note 1.375%0.76 US Treasury Note 2.75%0.65 US Treasury Note 1.75%0.58 Total Number of Stock Holdings 0 Total Number of Bond Holdings 14028 Total Number of Holdings 14192 Share Class Net Assets (mil)13,212 Investment Growth as of 6/30/2011 20k 18 16 14 12 10 Growth of 10,000 10K line Inv: 17,626.97 Bmark 1: 18,113.37 Performance Quartile(within category)&( ( * & * & & ) ( ( 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History 8.43 8.26 3.97 4.24 2.40 4.27 6.92 5.05 5.93 6.42 2.49 Investment Return -0.02 -2.00 -0.13 -0.10 -0.03 -0.07 -0.05 -0.19 0.00 -0.12 -0.24 +/- Bmark 1 24 56 58 38 19 35 11 10 90 73 72 % Rank Category Maturity Breakdown: % Bonds as of 3/31/2011 1-3 22.12 10-14 4.78 3-5 13.67 15-19 2.19 5-6 11.63 20-29 30.85 7-9 12.61 30+2.15 Data provided by Morningstar 14 Morningstar DirectSM | Print Date: 7/28/2011 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 6/30/2011 19k 16 13 10 7 4 Growth of 10,000 10K line Inv: 15,714.08 Bmark 1: 14,818.84 Performance Quartile(within category)** * * ( ( * & ) * * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -3.02 -9.52 19.87 9.33 4.65 11.02 6.16 -22.21 20.05 13.13 4.86 Investment Return 0.70 0.30 1.39 1.03 0.65 -0.09 -0.06 -0.14 1.65 1.00 0.13 +/- Bmark 1 28 28 49 42 56 53 49 13 77 27 27 % Rank Category Equity Style Summary as of 3/31/2011 23.89 24.00 23.83 6.25 6.56 6.88 2.88 2.82 2.91 Val Core Grth Lrg Mid Sm Market Cap % Giant 40.83 Large 30.77 Mid 19.76 Small 6.43 Micro 2.22 Average Mkt Cap (mil) 27,448.72 Value Factors % Price/Earnings 14.60 Price/Book 2.08 Price/Sales 1.30 Price/Cash Flow 7.26 Dividend Yield 2.12 Growth Factors % LT Earn Grth 10.21 Historical Earn Grth 3.20 Book Val Grth 2.86 Sales Grth -0.17 Cash Flow Grth 2.30 Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Hardware 8.8 8.9 9.6 8.8 Software 4.4 4.1 4.5 4.7 Media 3.2 3.3 3.6 3.0 Telecom 6.1 6.7 3.9 6.2 Health Care 10.9 10.8 12.9 13.0 Cons Svcs 8.0 7.9 8.8 8.6 Bus Svcs 4.1 3.1 4.8 3.1 Financial 16.2 16.0 19.4 18.5 Cons Goods 10.3 10.6 8.8 9.6 Materials 12.5 12.2 11.3 11.7 Energy 12.4 13.3 9.0 9.6 Utilities 3.2 3.1 3.4 3.3 Morningstar Fixed Income Style BoxTM as of 3/31/2011 Short Int Long High Med Low Avg Eff Duration 5.13 Avg Eff Maturity 7.20 Avg Credit Quality AA Avg Wtd Coupon 4.32 Avg Wtd Price 105.78 Fixed Income Statistics as of 3/31/2011 Avg Eff Duration 5.13 Avg Wtd Coupon 4.32 Avg Eff Maturity 7.20 Avg Wtd Price 105.78 Avg Credit Quality AA Data provided by Morningstar 15 Morningstar DirectSM | Print Date: 7/28/2011 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 6/30/2011 16k 14 12 10 8 6 Growth of 10,000 10K line Inv: 12,071.02 Bmark 1: 12,200.41 Performance Quartile(within category)** * * ( & ( * ( * * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -12.02 -22.15 28.50 10.74 4.77 15.64 5.39 -37.02 26.49 14.91 5.95 Investment Return -0.14 -0.04 -0.18 -0.14 -0.14 -0.15 -0.11 -0.02 0.02 -0.15 -0.07 +/- Bmark 1 37 41 28 36 60 24 51 38 54 31 37 % Rank Category Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Hardware 8.9 8.9 10.0 8.8 Software 4.1 4.1 4.4 4.7 Media 3.3 3.3 3.4 3.0 Telecom 6.7 6.7 4.7 6.2 Health Care 10.9 10.8 13.0 13.0 Cons Svcs 7.9 7.9 8.5 8.6 Bus Svcs 3.1 3.1 3.3 3.1 Financial 16.0 16.0 18.6 18.5 Cons Goods 10.5 10.6 9.6 9.6 Materials 12.2 12.2 11.6 11.7 Energy 13.3 13.3 9.5 9.6 Utilities 3.1 3.1 3.3 3.3 Equity Style Summary as of 3/31/2011 29.37 30.34 28.68 4.52 4.01 2.95 0.06 0.03 0.03 Val Core Grth Lrg Mid Sm Market Cap % Giant 51.59 Large 36.75 Mid 11.54 Small 0.13 Micro 0.00 Average Mkt Cap (mil) 50,103.23 Value Factors % Price/Earnings 14.07 Price/Book 2.10 Price/Sales 1.33 Price/Cash Flow 7.27 Dividend Yield 2.09 Growth Factors % LT Earn Grth 9.87 Historical Earn Grth 6.87 Book Val Grth 3.78 Sales Grth 1.40 Cash Flow Grth 3.05 Top 10 Holdings as of 3/31/2011 % Weighting ExxonMobil Corporation 3.45 Apple, Inc.2.65 Chevron Corporation 1.78 General Electric Company 1.76 International Business Machines Corp 1.64 Microsoft Corporation 1.55 JP Morgan Chase & Co 1.52 AT&T, Inc.1.49 Procter & Gamble Company 1.43 Wells Fargo Company 1.38 Total Number of Stock Holdings 506 Total Number of Bond Holdings — Total Number of Holdings 514 Share Class Net Assets (mil)32,521 Data provided by Morningstar 16 Morningstar DirectSM | Print Date: 7/28/2011 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 6/30/2011 19k 16 13 10 7 4 Growth of 10,000 10K line Inv: 15,204.95 Bmark 1: 14,595.03 Performance Quartile(within category)** * & * * * ( * ) * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -3.40 -16.86 30.08 18.31 7.01 18.25 2.23 -36.70 27.05 10.62 6.90 Investment Return 2.19 -1.34 0.05 1.82 -0.04 -4.00 2.40 0.15 7.36 -4.89 0.98 +/- Bmark 1 38 35 33 7 34 50 47 53 28 88 26 % Rank Category Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Hardware 8.6 1.9 4.7 2.6 Software 3.5 1.5 1.9 1.3 Media 2.6 5.2 2.0 4.2 Telecom 3.9 6.1 4.0 7.0 Health Care 11.6 12.3 10.6 7.0 Cons Svcs 6.2 3.7 5.7 4.4 Bus Svcs 1.6 2.9 2.8 2.1 Financial 20.5 26.6 24.0 31.1 Cons Goods 10.0 9.5 11.6 9.3 Materials 14.5 10.2 13.0 11.0 Energy 13.0 13.9 11.6 13.5 Utilities 4.0 6.4 8.1 6.4 Equity Style Summary as of 3/31/2011 42.01 33.86 14.32 5.69 3.92 0.15 0.02 0.02 0.02 Val Core Grth Lrg Mid Sm Market Cap % Giant 51.76 Large 38.36 Mid 9.75 Small 0.13 Micro 0.01 Average Mkt Cap (mil) 49,054.85 Value Factors % Price/Earnings 12.38 Price/Book 1.79 Price/Sales 1.24 Price/Cash Flow 6.59 Dividend Yield 2.29 Growth Factors % LT Earn Grth 9.18 Historical Earn Grth 6.41 Book Val Grth 3.12 Sales Grth 1.92 Cash Flow Grth 0.11 Top 10 Holdings as of 3/31/2011 % Weighting ConocoPhillips 3.79 International Business Machines Corp 3.31 Pfizer Inc.3.06 JP Morgan Chase & Co 2.92 CMT Market Liquidity Rate 2.64 Wells Fargo Company 2.54 Microsoft Corporation 2.37 Philip Morris International, Inc.2.28 Occidental Petroleum Corporation 2.12 Raytheon Company 2.11 Total Number of Stock Holdings 255 Total Number of Bond Holdings — Total Number of Holdings 261 Share Class Net Assets (mil)21,344 Data provided by Morningstar 17 Morningstar DirectSM | Print Date: 7/28/2011 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 6/30/2011 12k 10 8 6 4 2 Growth of 10,000 10K line Inv: 7,389.21 Bmark 1: 10,701.91 Performance Quartile(within category))) ( ( & ) ( * * ) & 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -31.70 -35.80 26.10 7.03 11.15 1.77 10.15 -37.82 34.95 11.53 7.07 Investment Return -11.27 -7.92 -3.65 0.73 5.89 -7.31 -1.66 0.62 -2.25 -5.18 0.24 +/- Bmark 1 85 92 58 55 18 88 68 28 47 83 25 % Rank Category Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Hardware 14.8 15.5 18.0 16.0 Software 8.8 6.6 6.6 8.0 Media 2.6 1.7 4.3 2.5 Telecom 9.7 6.5 3.1 3.6 Health Care 7.8 9.4 21.7 18.5 Cons Svcs 11.7 12.1 9.8 12.7 Bus Svcs 5.6 4.7 2.4 4.7 Financial 11.1 5.4 14.7 7.2 Cons Goods 9.7 11.2 5.6 10.5 Materials 9.5 14.9 9.1 11.0 Energy 8.7 11.9 4.4 4.5 Utilities 0.0 0.1 0.3 0.8 Equity Style Summary as of 3/31/2011 2.20 15.05 64.84 0.48 4.60 12.83 0.00 0.00 0.00 Val Core Grth Lrg Mid Sm Market Cap % Giant 27.57 Large 54.29 Mid 18.15 Small 0.00 Micro 0.00 Average Mkt Cap (mil) 29,494.85 Value Factors % Price/Earnings 18.61 Price/Book 2.97 Price/Sales 1.94 Price/Cash Flow 11.57 Dividend Yield 1.17 Growth Factors % LT Earn Grth 13.69 Historical Earn Grth 11.33 Book Val Grth 11.24 Sales Grth 6.06 Cash Flow Grth 2.01 Top 10 Holdings as of 3/31/2011 % Weighting Apple, Inc.5.33 CMT Market Liquidity Rate 5.05 Qualcomm, Inc.3.54 EOG Resources 2.38 Priceline.com, Inc.2.30 Google, Inc.2.28 eBay, Inc.1.93 Schlumberger, Ltd.1.85 Allergan, Inc.1.80 CME Group, Inc. A 1.56 Total Number of Stock Holdings 115 Total Number of Bond Holdings — Total Number of Holdings 122 Share Class Net Assets (mil)3,136 Data provided by Morningstar 18 Morningstar DirectSM | Print Date: 7/28/2011 Page 1 of 1 Vanguard Mid Cap Index Inv VIMSX Currency Morningstar Category USD US OE Mid-Cap Blend Benchmark 1MSCI US Mid Cap 450 GR USD Investment Growth as of 6/30/2011 22k 19 16 13 10 7 Growth of 10,000 10K line Inv: 20,800.98 Bmark 1: 20,041.39 Performance Quartile(within category)** ( & & * * ( & * * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -0.50 -14.61 34.14 20.35 13.93 13.60 6.02 -41.82 40.22 25.46 7.99 Investment Return 5.88 1.85 -4.91 -0.17 -0.01 -0.15 -0.17 -0.02 -0.27 -0.23 -0.13 +/- Bmark 1 36 41 55 19 13 46 44 69 25 29 39 % Rank Category Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Hardware 8.6 — 8.9 — Software 3.4 — 4.5 — Media 3.1 — 2.5 — Telecom 2.6 — 2.1 — Health Care 9.7 — 10.7 — Cons Svcs 9.5 — 10.0 — Bus Svcs 4.9 — 8.0 — Financial 16.5 — 18.8 — Cons Goods 10.6 — 8.2 — Materials 15.1 — 10.8 — Energy 10.9 — 9.3 — Utilities 5.1 — 6.2 — Equity Style Summary as of 3/31/2011 1.51 0.95 7.79 29.26 30.11 29.20 0.29 0.67 0.22 Val Core Grth Lrg Mid Sm Market Cap % Giant 0.00 Large 10.20 Mid 88.53 Small 1.27 Micro 0.00 Average Mkt Cap (mil) 6,420.98 Value Factors % Price/Earnings 17.15 Price/Book 2.07 Price/Sales 1.22 Price/Cash Flow 7.34 Dividend Yield 1.78 Growth Factors % LT Earn Grth 11.46 Historical Earn Grth 5.29 Book Val Grth 2.49 Sales Grth 0.18 Cash Flow Grth -0.48 Top 10 Holdings as of 3/31/2011 % Weighting Cameron International Corporation 0.57 Altera Corp.0.57 Rockwell Automation 0.55 Cliffs Natural Resources Inc.0.55 Discover Financial Services 0.54 El Paso Corporation 0.52 Dover Corporation 0.50 Consol Energy, Inc.0.50 Pioneer Natural Resources Company 0.49 Humana 0.48 Total Number of Stock Holdings 455 Total Number of Bond Holdings — Total Number of Holdings 457 Share Class Net Assets (mil)5,677 Data provided by Morningstar 19 Morningstar DirectSM | Print Date: 7/28/2011 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 6/30/2011 26k 22 18 14 10 6 Growth of 10,000 10K line Inv: 21,615.31 Bmark 1: 22,413.41 Performance Quartile(within category)(( * * * * * ( * & * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History 3.10 -20.02 45.63 19.90 7.36 15.66 1.16 -36.07 36.12 27.72 7.55 Investment Return -0.12 -1.66 -1.76 -0.11 -0.12 -0.11 -0.05 0.13 -0.03 -0.10 -0.02 +/- Bmark 1 73 71 36 43 42 42 30 53 26 25 33 % Rank Category Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Hardware 7.6 — 8.3 — Software 6.7 — 4.9 — Media 1.4 — 1.7 — Telecom 4.0 — 2.3 — Health Care 10.1 — 11.5 — Cons Svcs 8.4 — 9.7 — Bus Svcs 8.4 — 10.1 — Financial 19.5 — 21.0 — Cons Goods 9.6 — 6.5 — Materials 14.1 — 14.2 — Energy 6.8 — 5.7 — Utilities 3.3 — 4.1 — Equity Style Summary as of 3/31/2011 0.00 0.00 0.16 5.88 9.65 16.32 22.60 21.79 23.60 Val Core Grth Lrg Mid Sm Market Cap % Giant 0.00 Large 0.16 Mid 31.76 Small 53.52 Micro 14.56 Average Mkt Cap (mil) 1,588.58 Value Factors % Price/Earnings 17.87 Price/Book 1.89 Price/Sales 1.07 Price/Cash Flow 6.83 Dividend Yield 2.29 Growth Factors % LT Earn Grth 12.03 Historical Earn Grth 2.85 Book Val Grth -0.76 Sales Grth -7.84 Cash Flow Grth -5.87 Top 10 Holdings as of 3/31/2011 % Weighting Informatica Corporation 0.28 VeriFone Systems, Inc.0.27 SM Energy Company 0.27 SandRidge Energy, Inc.0.27 JDS Uniphase Corporation 0.27 CMT Market Liquidity Rate 0.27 TIBCO Software, Inc.0.26 Polycom, Inc.0.25 Tractor Supply 0.25 Brigham Exploration Company 0.25 Total Number of Stock Holdings 1716 Total Number of Bond Holdings — Total Number of Holdings 1720 Share Class Net Assets (mil)5,456 Data provided by Morningstar 20 Morningstar DirectSM | Print Date: 7/29/2011 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 6/30/2011 22k 18 14 10 6 2 Growth of 10,000 10K line Inv: 16,936.02 Bmark 1: 17,805.50 Performance Quartile(within category)*( * * * * & ( & & * 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-06 History -18.92 -17.79 34.45 18.95 15.00 25.92 15.98 -44.94 41.63 15.66 4.86 Investment Return 0.82 -2.84 -6.38 -1.95 -1.61 -0.73 -0.67 0.59 0.18 4.51 1.06 +/- Bmark 1 28 62 39 30 39 37 22 62 10 8 39 % Rank Category Historical Equity Sectors 2001-04-30 to 2011-03-31 100% 75 50 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Most Recent %Average % Subject B1 Subject B1 Hardware 4.4 — 3.8 — Software 3.9 — 1.5 — Media 0.3 — 2.2 — Telecom 6.3 — 5.9 — Health Care 4.9 — 7.1 — Cons Svcs 7.6 — 7.9 — Bus Svcs 2.4 — 5.6 — Financial 19.0 — 22.5 — Cons Goods 15.0 — 16.6 — Materials 26.2 — 17.7 — Energy 8.6 — 6.8 — Utilities 1.4 — 2.4 — Equity Style Summary as of 3/31/2011 22.94 23.99 39.25 2.86 4.00 6.66 0.12 0.03 0.15 Val Core Grth Lrg Mid Sm Market Cap % Giant 54.03 Large 32.52 Mid 13.16 Small 0.27 Micro 0.02 Average Mkt Cap (mil) 28,878.91 Value Factors % Price/Earnings 13.46 Price/Book 1.89 Price/Sales 1.34 Price/Cash Flow 7.60 Dividend Yield 2.35 Growth Factors % LT Earn Grth 12.53 Historical Earn Grth -8.13 Book Val Grth 4.42 Sales Grth -3.44 Cash Flow Grth 2.05 Top 10 Holdings as of 3/31/2011 % Weighting CMT Market Liquidity Rate 4.75 Baidu, Inc. ADR 2.70 BG Group PLC 1.83 Atlas Copco 1.76 Samsung Electronics Co., Ltd.1.70 Tencent Holdings Ltd.1.57 Rolls-Royce Group PLC 1.51 Novartis AG 1.47 Turkiye Garanti Bankasi A.S.1.42 BHP Billiton PLC 1.40 Total Number of Stock Holdings 184 Total Number of Bond Holdings — Total Number of Holdings 194 Share Class Net Assets (mil)12,647 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. •(c) Morningstar 2011. 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) 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 performance is no guarantee of future results. 22