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Home My Public Portal About2012 4th Quarter ReportInvestment Performance AnalysisAs of December 31, 2012February 25, 2013Kristin Finney-Cooke, CAIA, Senior ConsultantKristen Jackson, CFA, Sr. AnalystThe Metropolitan St. Louis Sewer District Employees’ Pension Plan Table of ContentsInvestment Outlook1Market Environment2Executive Summary3Asset Allocation4Manager Pages 5 TabThe Metropolitan St. Louis Sewer District Employees’ Pension PlanDecember 31, 20121 " After broad rally in 2012, opportunistic trades are less compelling Most markets have recovered from pull back in 2011 Lack of good value across markets presents opportunity to revisit investment objectives and confirm long-term strategic allocations" Forward-looking expectations are lower after 2012 market rally Performance in credit and US equity markets lowers 5-7 year expectations across these asset categories Yields remain low as do sovereign bond return expectations Non-US equities have high risk but also higher return expectations" 30-year returns also lower for credit markets Broad based credit spread compression and low sovereign yields reduce long-term expectations for credit Equity asset classes less affected by rally and supported by higher inflation expectation over 30 years" Macroeconomic themes continue to weigh on marketsBackgroundThe Metropolitan St. Louis Sewer District Employees Pension Plan2 " Strong 2012 market returns lead to subdued expectations Without a fundamental shift in underlying economic drivers, favorable recent performance robs from the future and lowers 5-7 year outlook across markets Markets have rallied based on policy announcements more than economic results Policy accommodation could provide further tailwind to markets in near-term " Valuation expansion is unlikely to be a large driver on its own as few markets look cheap" Potential for macro shock is elevated in the near term Stimulative monetary policy in developed world creates a deceptively calm backdrop US fiscal cliff, European misstep, China slow down, or Middle East conflict could send shocks across markets" Global growth outlook remains constrained as developed world lacks political will to truly address debt burden Pressure for fiscal tightening (European austerity, US fiscal cliff) could neutralize benefits of monetary stimulus Structural debt issues plus ancillary effects of money printing will extend deleveraging" Seeds of inflation planted but not yet watered Money printing has led to asset price inflation instead of inflation in the real economy Monetary easing creates long-term inflation threat, but muted credit growth limits near-term inflation pressureNEPC 2013 Capital Market ObservationsThe Metropolitan St. Louis Sewer District Employees Pension Plan3 " Focus on strategic allocations in a time with few tactical opportunities Confirm your policy objectives and investment goals Avoid stretching for higher returns through increased risk Be prepared to act if opportunities do present themselves" Position for a continuation of macro-driven themes Examine existing managers capabilities " Add to global asset allocation and top-down active strategies Use flexible active managers to implement allocations to policy-driven markets" Non-US equities have attractive valuations, but return premium reflects downside risk" Credit markets have recovered but liquidity has fallen, making market dynamics less stable" Use Risk Parity as a stable foundation of a diversified program Reconsider what constitutes a core investment in this environment " No longer just stocks and bonds Risk Parity can be used as a liquid placeholder while tactical opportunities are limited" Continue building allocations in emerging markets and real assets Developing countries consistently demonstrate superior fundamentals to G7 markets Most investors remain vulnerable to higher inflation, with limited real assets exposure" Allocate to less liquid strategies with patience Distressed assets thesis is compelling but current opportunities are limited Strategies providing capital to markets that have traditionally relied on banks are appealing with high income and relatively shorter time horizons Significant system stress remains in real estate market but conditions have improvedNEPC 2013 General Actions for ClientsThe Metropolitan St. Louis Sewer District Employees Pension Plan4 " Given the 2012 run-up in global equities& consider rebalancing back to target allocations" Given the expected low return environment Reassess the ability of your Fund to earn its assumed actuarial rate of return at prudent levels of risk " Both short term and long term" Plan to proactively communicate with non-trustee stakeholders on the potential impacts of a subdued-return environment Beneficiaries Policy Makers Media" Analyze your current and projected liquidity profile Given the attractiveness of less liquid strategies in relation to traditional asset classes& determine how much liquidity risk your Fund can assume" Continue to build a diversified and flexible fixed income portfolio& move away from a core (Barclays Aggregate) model Evaluate current positioning of investment grade and high yield credit" Consider complementary allocations to or policy allowances for more attractive risk-adjusted profiles (e.g., bank loans) EMD Local Currency remains attractive relative to Global Developed-Country Bonds" Higher yield, shorter duration, improving credit quality, potential for currency appreciationNEPC 2013 Focused Actions for Public FundsThe Metropolitan St. Louis Sewer District Employees Pension Plan5 " Emerging Markets remain a critical strategic exposure" Performance across emerging markets was strong in 2012 EM Equities: 18.2% EM External Debt: 18.5% EM Local Currency Debt: 16.8%" Even with run-up, EM remains poised for outperformance" Confirm that your emerging markets exposure is at or above market-capitalization weightingNEPC 2013 Focused Actions for Public FundsMSCI All Country World Index Regional Allocations as of 9/30/1247.5%40.0%12.5%U.S. EquityNon-U.S. EquityEmerging MarketsThe Metropolitan St. Louis Sewer District Employees Pension Plan6 " EM Local Currency Debt presents a better risk-return profile than External Debt Higher yield Shorter duration Better credit quality Increased volatility due to currency but potential for appreciation" Volatility will continue as these countries manage economic growth and effects of debt deleveraging in developed markets Sources of growth likely to transition from exports and investment to internal consumptionNEPC 2013 Focused Actions for Public FundsSource: IMF as of 10/31Source: Barclays Capital as of 11/30The Metropolitan St. Louis Sewer District Employees Pension Plan7 " Broad Portfolio Structure:" Valuation opportunities are now more limited Valuations are materially less attractive than one year ago after market recovery Use rebalancing as a chance to move back to strategic policy targets" Markets are much closer to fair value than a year ago Many asset classes can still offer reasonable returns through income and growth" Non-US equity valuations are attractive relative to history but discount may be appropriate given meaningful exposure to European uncertainty Important to utilize active management to capture opportunities in these areas" Liquid credit spreads compressed from late 2011 highs but overall market liquidity is now more limited Demand for yield has led to indiscriminate purchasing of new issues, Any market shock could be exacerbated by limited tradingMacro Opportunities Are Less ObviousSource: Bloomberg as of 11/30Source: Bloomberg, Barclays as of 11/30The Metropolitan St. Louis Sewer District Employees Pension Plan8 " Performance across emerging markets was strong in 2012 EM Equities: 18.2% EM External Debt: 18.5% EM Local Currency Debt: 16.8%" Even with run-up, EM remains poised for outperformance" EM Local Currency Debt presents a better risk-return profile than External Debt Higher yield Shorter duration Better credit quality Increased volatility due to currency but potential for appreciation" Volatility will continue as these countries manage economic growth and effects of debt deleveraging in developed markets Sources of growth likely to transition from exports and investment to internal consumptionEmerging Markets Remain A Critical Strategic ExposureSource: IMF as of 10/31Source: Barclays Capital as of 11/30The Metropolitan St. Louis Sewer District Employees Pension Plan9 Investment Outlook10 " Markets responded favorably in 2012 to policy action, yet underlying building blocks remain subdued" Growth expectations across developed markets remain low (0-3%)" Yields are generally lower Sovereign yields shifted lower in 2012 Credit spreads compressed Dividends lower with higher price levels" Cash rates, the starting point for returns, are pinned at 0%" Investors can still expect to earn a premium for taking capital market risk But contribution to return from valuation expansion is likely to be more limited" In a difficult environment for savers, institutional investors do have some advantages Scale Time horizonExpected Returns Are Lower After Strong Performance in 2012The Metropolitan St. Louis Sewer District Employees Pension Plan11 " Markets have been calm despite potential for negative macro-economic event" Political negotiations will continue in the US around the debt ceiling and potential spending cuts as increased taxes create a drag on growth" Europe now has a more credible plan Forced austerity on periphery and anemic growth across the continent create challenging conditions" China appears to have avoided a hard landing but faces challenges Economic rebalancing from external to internal growth Leadership transition" Ongoing Middle East conflict (Syria) and rhetoric around broader tension (Israel/Gaza & Iran) remain major political and economic issuesExogenous Shocks Could Have Major Impact On MarketsSource: CBOE as of 11/30The Metropolitan St. Louis Sewer District Employees Pension Plan12 Major Global Macroeconomic Risks Remain on HorizonThe Metropolitan St. Louis Sewer District Employees’ Pension Plan13 " Monetary accommodation has been tremendously powerful in boosting capital markets Impact on broader economy has been more limited" Inflation to the goods and services economy will react to drivers that remain subdued Credit growth still muted as lenders limit credit access to highest quality borrowers Wage growth remains low with unemployment stubbornly elevated" Near-term inflation potential stays fairly modest amidst global deleveraging" Long-term inflation pressures continue to build As economy improves and corrects imbalances, build up of loose monetary policy is likely to lead to higher inflation levelsInflation& Not YetSource: St. Louis Fed as of 9/30 Source: Bureau of Economic Analysis as of 9/30 The Metropolitan St. Louis Sewer District Employees Pension Plan14 Capital Market Overview15 Investment Market Update: As of December 31, 2012 December 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan16 Investment Market Update: As of December 31, 2012December 31, 2012PERFORMANCE THROUGH 12/31/2012SectorIndex2008200920102011QTR 1QTR 2QTR 3OCTNOVDECQTR 42012Emerging EM (net)-53.3%78.5% 18.9%-18.4%14.1%-8.9%7.7%-0.6%1.3% 4.9% 5.6% 18.2%Small Cap Value R2000 Value-28.9%20.6% 24.5%-5.5%11.6%-3.0%5.7%-1.3%0.3% 4.2% 3.2% 18.1%Emerging FIBC Emerging (USD)-14.7%34.2% 12.8% 7.0% 5.5% 1.4% 6.8% 1.2% 1.0% 1.0% 3.3% 17.9%SMID CapR2500-36.8%34.4% 26.7%-2.5%13.0%-4.1%5.6%-1.0%1.5% 2.6% 3.1% 17.9%REITSWilshire REIT-39.2%28.6% 28.6% 9.2% 10.8% 3.7%-0.1% -0.9% -0.4%3.8% 2.5% 17.6%Large Cap Value R1000 Value-36.8%19.7% 15.5% 0.4% 11.1%-2.2%6.5%-0.5% -0.0%2.1% 1.5% 17.5%Int. EquityEAFE (net)-43.4%31.8% 7.8%-12.1%10.9%-7.1%6.9% 0.8% 2.4% 3.2% 6.6% 17.3%EMD Loc.GBI-EM Glob. Div.-5.2%22.0% 15.7%-1.8%8.3%-1.2%4.8% 0.5% 1.4% 2.2% 4.1% 16.8%Large CapRussell 1000-37.6%28.4% 16.1% 1.5% 12.9%-3.1%6.3%-1.7%0.8% 1.0% 0.1% 16.4%Small CapRussell 2000-33.8%27.2% 26.9%-4.2%12.4%-3.5%5.3%-2.2%0.5% 3.6% 1.9% 16.3%Large CapS&P 500-37.0%26.5% 15.1% 2.1% 12.6%-2.8%6.4%-1.8%0.6% 0.9%-0.4%16.0%High YieldBC HY-26.2%58.2% 15.1% 5.0% 5.3% 1.8% 4.5% 0.9% 0.8% 1.6% 3.3% 15.8%Large Cap Growth R1000 Growth-38.4%37.2% 16.7% 2.6% 14.7%-4.0%6.1%-2.9%1.7%-0.0% -1.3%15.3%Small Cap Growth R2000 Growth-38.5%34.5% 29.1%-2.9%13.3%-3.9%4.8%-3.1%0.8% 2.9% 0.4% 14.6%Long CreditBC Long Credit-3.9%16.8% 10.7% 17.1% 0.8% 5.0% 5.2% 2.1%-0.4% -0.4%1.3% 12.8%DiversifiedDiversified*-26.8%25.9% 12.4% 1.9% 8.6%-1.7%4.7%-0.7%1.0% 1.2% 1.5% 13.3%Long Gov/Credit BC Long Gov/Credit 8.4% 1.9% 10.2% 22.5%-2.1%7.3% 3.1% 1.2% 0.3%-1.0%0.5% 8.8%Muni BondsBC Muni (unadj)-2.5%12.9% 2.4% 10.7% 1.7% 1.9% 2.3% 0.3% 1.6%-1.2%0.7% 6.8%Core FIBC Aggregate5.2% 5.9% 6.5% 7.8% 0.3% 2.1% 1.6% 0.2% 0.2%-0.1%0.2% 4.2%Int. Gov/Credit BC Intermediate GC 5.1% 5.2% 5.9% 5.8% 0.6% 1.5% 1.4% 0.1% 0.3%-0.1%0.3% 3.9%Int. Core FIBC Intermediate Agg 4.9% 6.5% 6.1% 6.0% 0.7% 1.3% 1.4% 0.0% 0.1%-0.0%0.2% 3.6%Treasury STRIPS BC 20+ STRIPS59.5%-36.0%10.9% 58.5%-11.3%18.8%-0.6% -0.1%1.6%-3.2% -1.7%3.0%Gov/CreditBC 1-5 Yr Gov/Cred 5.1% 4.6% 4.1% 3.1% 0.5% 0.6% 0.9% 0.0% 0.2%-0.0%0.2% 2.2%Global FICitigroup WGBI10.9% 2.6% 5.2% 6.4%-0.5%0.9% 3.0%-0.6% -0.2% -0.9% -1.7%1.6%Gov/CreditBC 1-3 Yr Gov/Cred 5.0% 3.8% 2.8% 1.6% 0.4% 0.2% 0.5% 0.0% 0.1% 0.1% 0.2% 1.3%Commodities DJ UBS Commodity-35.6%18.9% 16.8%-13.3%0.9%-4.5%9.7%-3.9%0.1%-2.6% -6.3% -1.1%Sources: Barclays, Bloomberg, Wilshire* 35% LC, 10% SC, 12% Intl, 3% Emerging, 25% FI, 5% HY, 5% Global FI, 5% REITSThe Metropolitan St. Louis Sewer District Employees’ Pension Plan17 Investment Market Update: As of January 31, 2013January 31, 2013PERFORMANCE THROUGH 1/31/2013SectorIndex20082009201020112012JANSMID CapR2500-36.8%34.4% 26.7%-2.5%17.9% 6.8%Small Cap Growth R2000 Growth-38.5%34.5% 29.1%-2.9%14.6% 6.6%Large Cap Value R1000 Value-36.9%19.7% 15.5% 0.4% 17.5% 6.5%Small CapRussell 2000-33.8%27.2% 26.9%-4.2%16.4% 6.3%Small Cap Value R2000 Value-28.9%20.6% 24.5%-5.5%18.1% 6.0%Large CapRussell 1000-37.6%28.4% 16.1% 1.5% 16.4% 5.4%Int. EquityEAFE (net)-43.4%31.8% 7.8%-12.1%17.3% 5.3%Large CapS&P 500-37.0%26.5% 15.1% 2.1% 16.0% 5.2%Large Cap Growth R1000 Growth-38.4%37.2% 16.7% 2.6% 15.3% 4.3%REITSWilshire REIT-39.2%28.6% 28.6% 9.2% 17.6% 3.5%DiversifiedDiversified*-24.5%24.1% 13.5% 1.3% 12.7% 3.1%Commodities DJ UBS Commodity-35.7%18.9% 16.8%-13.3% -1.1%2.4%Emerging EM (net)-53.3%78.5% 18.9%-18.4%18.2% 1.4%High YieldBC HY-26.2%58.2% 15.1% 5.0% 15.8% 1.3%EMD Loc.GBI-EM Glob. Div.-5.2%22.0% 15.7%-1.8%16.8% 0.7%Muni BondsBC Muni (unadj)-2.5%12.9% 2.4% 10.7% 6.8% 0.4%Gov/CreditBC 1-3 Yr Gov/Cred 5.0% 3.8% 2.8% 1.6% 1.3% 0.0%Int. Gov/Credit BC Intermediate GC 5.1% 5.2% 5.9% 5.8% 3.9%-0.4%Emerging FIBC Emerging (USD)-14.8%34.2% 12.8% 7.0% 18.0%-0.7%Core FIBC Aggregate5.2% 5.9% 6.5% 7.8% 4.2%-0.7%Int. Core FIBC Intermediate Agg 5.2% 5.9% 6.5% 7.8% 4.2%-0.7%Global FICitigroup WGBI10.9% 2.6% 5.2% 6.4% 1.7%-1.3%Long CreditBC Long Credit-3.9%16.8% 10.7% 17.1% 12.7%-2.2%Long Gov/Credit BC Long Gov/Credit 8.4% 1.9% 10.2% 22.5% 8.8%-2.7%Treasury STRIPS BC 20+ STRIPS59.5%-36.0%10.9% 58.5% 3.0%-5.9%Sources: Barclays, Bloomberg, Wilshire* 35% LC, 10% SC, 12% Intl, 3% Emerging, 25% FI, 5% HY, 5% Global FI, 5% REITSThe Metropolitan St. Louis Sewer District Employees’ Pension Plan18 US Economic EnvironmentDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan19 Components of GDPDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan20 US Stock Market PerformanceDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan21 Non-US Stock PerformanceDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan22 Emerging MarketsDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan23 Market Environment – Interest RatesDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan24 Fixed Income PerformanceDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan25 Executive Summary26 Portfolio CommentaryTotal ReturnCurrent Allocation Total CompositeInvestment SummaryLast QuarterLast YearLast 3 YearsLast 5 YearsTotal Composite 2.0 12.8 8.8 4.5Rank 31 37 37 10Median Public Funds 1.7 11.9 8.4 3.5Policy Index 1.5 11.6 8.0 3.6Periods longer than one year are annualized*Rankings versus total Public Fund s1=best, 100=worst.20.0%5.0%10.0%3.0%13.0%5.0%5.0%8.0%2.0%10.0%4.0%5.0%5.0%5.0%0.0%‐15.0%‐10.0%‐5.0%0.0%5.0%10.0%15.0%20.0%25.0%Over/Under TargetPolicy Target•Goals & Objectives–The portfolios investment objective is to achieve a rate of return consistent with that of the set asset allocation, while maintaining a long term investment horizon for the Fund•Recent Decisions and Ongoing Activities–Selected new Large Cap Growth Equity managers to replace Buford Dickson and Waddell & Reed during 1stQuarter 2013.–Reviewing the high yield manager Penn Capital’s performance.•Total Fund Performance / Asset Growth–As of 2012 year end, the market value of assets held was $223.8 million, up from $200.5 million at 2011 year end. During the 4thquarter, the net cash contribution was $3.0 million and the net investment earnings were $4.1 million.–The Fund returned 2.0% for the Quarter, which ranked in the 31thpercentile in the IF Public DB Fund Universe.–Trailing performance ranks above the median for the last quarter, one, three, and five year periods.•Total Fund Asset Allocation–Currently, the Fund is relatively close to its policy benchmark in all classes.37December 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan27 5 Years Ending December 31, 2012 Anlzd Ret Rank Anlzd Std Dev Rank Sharpe Ratio Rank Sortino Ratio RF Rank _ Composite 4.49% 10 10.85% 38 0.38 13 0.49 9 Composite Allocation Index 3.81%36 10.63%36 0.33 22 0.42 19 Policy Index 3.64% 43 11.51% 47 0.29 32 0.36 29 XXXXX 3 Years Ending December 31, 2012 Anlzd Ret Rank Anlzd Std Dev Rank Sharpe Ratio Rank Sortino Ratio RF Rank _ Composite 8.78% 37 9.11% 53 0.95 44 1.37 54 Composite Allocation Index 7.98%64 8.77%49 0.90 62 1.41 48 Policy Index 7.98% 64 8.99% 51 0.88 65 1.36 56 Market Value 3 Mo Rank 1 Yr Rank 3 Yrs Rank 5 Yrs Rank _ Composite $223,825,557 2.0%31 12.8%37 8.8%37 4.5%10 Composite Allocation Index 1.6%60 11.4%63 8.0%64 3.8%36 Policy Index 1.5%66 11.6%59 8.0%64 3.6%43 IF Public DB Gross Median 1.7% 11.9% 8.4% 3.5% XXXXX December 31, 2012 Note: All performance shown is gross of fees. The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Performance Summary 28 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Risk/Return 3 Years Ending December 31, 2012 % of Tot Anlzd Ret Rank Anlzd Std Dev Rank _ Composite 100.00% 8.78% 37 9.11% 53 Composite Allocation Index --7.98%64 8.77%49 Policy Index -- 7.98% 64 8.99% 51 IF Public DB Gross Median --8.43%--8.93%-- XXXXX 3 Years Ending December 31, 2012 % of Tot Sharpe Ratio Rank Sortino Ratio RF Rank _ Composite 100.00% 0.95 44 1.37 54 Composite Allocation Index --0.90 62 1.41 48 Policy Index -- 0.88 65 1.36 56 IF Public DB Gross Median --0.95 --1.42 -- XXXXX 29 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Risk/Return 5 Years Ending December 31, 2012 % of Tot Anlzd Ret Rank Anlzd Std Dev Rank _ Composite 100.00% 4.49% 10 10.85% 38 Composite Allocation Index --3.81%36 10.63%36 Policy Index -- 3.64% 43 11.51% 47 IF Public DB Gross Median --3.54%--11.93%-- XXXXX 5 Years Ending December 31, 2012 % of Tot Sharpe Ratio Rank Sortino Ratio RF Rank _ Composite 100.00% 0.38 13 0.49 9 Composite Allocation Index --0.33 22 0.42 19 Policy Index -- 0.29 32 0.36 29 IF Public DB Gross Median --0.26 --0.32 -- XXXXX 30 Sources of Portfolio Growth Last Three Months One Year Three Years _ Beginning Market Value $216,680,553 $200,494,127 $179,384,938 Net Additions/Withdrawals $2,997,130 -$1,208,596 -$3,604,084 Investment Earnings $4,147,874 $24,540,026 $48,044,702 Ending Market Value $223,825,557 $223,825,557 $223,825,557 _ December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Asset Growth Summary 31 December 31, 2012 Note: A cash balance exists since benefits are paid from the Pension on the first business day each month. In addition, a small cash balance is maintained to meet ongoing liquidity needs. The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Asset Growth Summary by Manager Quarter Ending December 31, 2012 Beginning Market Value Net Cash Flow Net Investment Change Ending Market Value _ Brandywine Global Bond $17,075,173 $0 $494,013 $17,569,186 Buford Dickson Harper & Sparrow $5,507,104 $0 -$159,824 $5,347,280 Cash $1,113,388 $82,331 $0 $1,195,719 GMO Asset Allocation Fund $21,619,031 $250,000 $427,675 $22,296,706 Income Research $27,479,860 $700,000 $166,675 $28,346,535 Kennedy $5,948,870 -$200,201 $107,138 $5,855,808 Loomis Credit Asset Fund $4,463,351 $0 $109,947 $4,573,298 Morgan Stanley Inst Emg Mkt Port.$6,472,443 $0 $343,687 $6,816,129 Morgan Stanley Int'l Equity Fund $21,141,298 $750,000 $1,341,149 $23,232,447 Penn Capital $11,347,022 $0 $325,151 $11,672,173 Pictet Emerging Local Curr. Debt Fd $11,145,597 $0 $398,272 $11,543,870 PIMCO All Asset $9,351,747 $715,000 $307,079 $10,373,826 Pyramis Mkt Neutral $10,116,279 $0 $113,751 $10,230,030 TimesSquare Small Cap Growth Fund $6,052,225 -$200,000 $35,068 $5,887,292 UBS Realty - Trumbull Property Fund $9,593,355 $0 $157,898 $9,751,253 Vanguard Institutional Index $7,466,294 $0 -$28,841 $7,437,453 Vanguard Windsor II $16,014,499 -$600,000 $182,570 $15,597,069 Waddell & Reed $15,404,892 $0 -$40,856 $15,364,036 Wellington Diver. Inflation $9,368,125 $1,500,000 -$132,678 $10,735,447 Total $216,680,553 $2,997,130 $4,147,874 $223,825,557 XXXXX 32 Redemptions / Contributions during the 4thQuarter were:Vanguard Windsor II - $600,000 redemptionKennedy - $200,000 redemption and $201 for foreign taxes withheldTimesSquare - $200,000 redemptionMorgan Stanley Int’l - $750,000 contributionIncome Research - $700,000 contributionGMO GAA - $250,000 contributionPIMCO All Asset – NET contributions $715,000Wellington DIH - $1,500,000 contributionDetail on Total Fund Asset Growth SummaryDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan33 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Performance Detail Market Value ($) % of Portfolio Policy %3 Mo (%)Rank 1 Yr (%)Rank 3 Yrs (%)Rank 5 Yrs (%)Rank 10 Yrs (%)Rank Return (%)Since _ Composite 223,825,557 100.0 100.0 2.0 31 12.8 37 8.8 37 4.5 10 8.1 15 8.7 Oct-82 Composite Allocation Index 1.6 60 11.4 63 8.0 64 3.8 36 7.6 44 --Oct-82 Over/Under 0.4 1.4 0.8 0.7 0.5 Policy Index 1.5 66 11.6 59 8.0 64 3.6 43 7.5 48 --Oct-82 IF Public DB Gross Median 1.7 11.9 8.4 3.5 7.4 9.8 Oct-82 Large Cap Equity Composite 43,745,838 19.5 20.0 0.0 55 14.3 66 9.9 60 1.5 65 ------Jun-03 S&P 500 -0.4 62 16.0 45 10.9 42 1.7 61 7.1 79 6.3 Jun-03 Over/Under 0.4 -1.7 -1.0 -0.2 eA US Large Cap Equity Gross Median 0.1 15.6 10.4 2.2 8.1 7.3 Jun-03 Vanguard Windsor II 15,597,069 7.0 7.0 1.3 51 17.2 33 10.3 52 1.9 47 8.4 47 5.0 May-01 Russell 1000 Value 1.5 45 17.5 30 10.9 41 0.6 74 7.4 76 4.4 May-01 Over/Under -0.2 -0.3 -0.6 1.3 1.0 0.6 eA US Large Cap Value Equity Gross Median 1.3 15.7 10.4 1.6 8.2 5.3 May-01 Buford Dickson Harper & Sparrow 5,347,280 2.4 3.0 -2.9 95 7.3 99 7.3 94 -1.6 96 4.2 99 -0.8 Oct-00 Russell 1000 Growth -1.3 64 15.3 55 11.4 36 3.1 37 7.5 65 -0.6 Oct-00 Over/Under -1.6 -8.0 -4.1 -4.7 -3.3 -0.2 eA US Large Cap Growth Equity Gross Median -0.9 15.7 10.5 2.6 8.1 1.8 Oct-00 Waddell & Reed 15,364,036 6.9 7.0 -0.2 34 12.9 79 9.8 64 1.8 67 7.8 60 7.1 Dec-02 Russell 1000 Growth -1.3 64 15.3 55 11.4 36 3.1 37 7.5 65 6.7 Dec-02 Over/Under 1.1 -2.4 -1.6 -1.3 0.3 0.4 eA US Large Cap Growth Equity Gross Median -0.9 15.7 10.5 2.6 8.1 7.3 Dec-02 Vanguard Institutional Index 7,437,453 3.3 3.0 -0.4 60 15.9 42 10.9 38 1.9 60 7.2 74 2.8 Oct-99 S&P 500 -0.4 61 16.0 41 10.9 39 1.7 64 7.1 79 2.7 Oct-99 Over/Under 0.0 -0.1 0.0 0.2 0.1 0.1 eA US Large Cap Core Equity Gross Median -0.1 15.4 10.3 2.2 8.0 4.4 Oct-99 Small Cap Equity Composite 11,743,100 5.2 5.0 1.3 65 14.1 68 14.1 41 6.9 24 ----10.8 Jun-03 Russell 2000 1.9 58 16.3 49 12.2 69 3.6 69 9.7 82 8.5 Jun-03 Over/Under -0.6 -2.2 1.9 3.3 2.3 eA US Small Cap Equity Gross Median 2.5 16.2 13.5 4.9 11.2 10.1 Jun-03 34 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Performance Detail Market Value ($) % of Portfolio Policy %3 Mo (%)Rank 1 Yr (%)Rank 3 Yrs (%)Rank 5 Yrs (%)Rank 10 Yrs (%)Rank Return (%)Since _ Kennedy 5,855,808 2.6 2.5 1.8 86 14.1 78 13.5 30 7.7 8 ----7.8 Feb-08 Russell MidCap Value 3.9 38 18.5 34 13.4 36 3.8 68 10.6 69 4.8 Feb-08 Over/Under -2.1 -4.4 0.1 3.9 3.0 eA US Mid Cap Value Equity Gross Median 3.6 16.9 12.8 4.4 11.2 5.5 Feb-08 TimesSquare Small Cap Growth Fund 5,887,292 2.6 2.5 0.9 36 14.1 52 15.0 41 7.3 14 12.8 14 10.0 Feb-02 Russell 2000 Growth 0.4 45 14.6 48 12.8 66 3.5 54 9.8 77 5.8 Feb-02 Over/Under 0.5 -0.5 2.2 3.8 3.0 4.2 eA US Small Cap Growth Equity Gross Median 0.2 14.3 14.2 3.8 11.0 7.5 Feb-02 International Equity Composite 23,232,447 10.4 10.0 6.4 52 20.7 46 6.4 45 0.0 25 8.8 77 5.1 May-99 S&P EPAC LargeMidCap 6.5 49 18.1 70 4.4 78 -2.8 70 8.9 77 3.7 May-99 Over/Under -0.1 2.6 2.0 2.8 -0.1 1.4 eA All EAFE Equity Gross Median 6.4 20.4 6.1 -1.8 10.0 6.0 May-99 Morgan Stanley Int'l Equity Fund 23,232,447 10.4 10.0 6.3 54 20.4 51 6.4 46 0.0 26 ----5.1 Apr-05 MSCI EAFE 6.6 45 17.3 77 3.6 87 -3.7 86 8.2 87 3.7 Apr-05 Over/Under -0.3 3.1 2.8 3.7 1.4 eA All EAFE Equity Gross Median 6.4 20.4 6.1 -1.8 10.0 5.4 Apr-05 International Emerging Composite 6,816,129 3.0 3.0 5.7 68 21.7 38 6.5 50 -1.8 75 ----12.3 Apr-05 MSCI Emerging Markets 5.6 70 18.2 68 4.7 62 -0.9 64 16.5 80 11.4 Apr-05 Over/Under 0.1 3.5 1.8 -0.9 0.9 eA Emg Mkts Equity Gross Median 6.5 20.9 6.3 -0.1 18.1 12.7 Apr-05 Morgan Stanley Inst Emg Mkt Port.6,816,129 3.0 3.0 5.6 70 21.3 43 6.3 50 -1.8 75 ----12.3 Apr-05 MSCI Emerging Markets 5.6 70 18.2 68 4.7 62 -0.9 64 16.5 80 11.4 Apr-05 Over/Under 0.0 3.1 1.6 -0.9 0.9 eA Emg Mkts Equity Gross Median 6.5 20.9 6.3 -0.1 18.1 12.7 Apr-05 Fixed Income Composite 73,705,062 32.9 33.0 2.1 13 11.5 20 8.5 34 8.0 25 ----6.2 Jun-03 Barclays Int Govt/Credit 0.3 64 3.9 74 5.2 75 5.2 76 4.6 76 4.4 Jun-03 Over/Under 1.8 7.6 3.3 2.8 1.8 eA All US Fixed Inc Gross Median 0.6 6.1 7.0 6.5 5.6 5.3 Jun-03 Income Research 28,346,535 12.7 13.0 0.6 25 6.8 14 6.9 12 7.1 9 6.0 5 6.3 Jul-01 Barclays Int Govt/Credit 0.3 60 3.9 79 5.2 76 5.2 90 4.6 89 5.3 Jul-01 Over/Under 0.3 2.9 1.7 1.9 1.4 1.0 eA US Interm Duration Fixed Inc Gross Median 0.4 4.9 5.7 5.9 5.1 5.7 Jul-01 35 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Performance Detail Market Value ($) % of Portfolio Policy %3 Mo (%)Rank 1 Yr (%)Rank 3 Yrs (%)Rank 5 Yrs (%)Rank 10 Yrs (%)Rank Return (%)Since _ Penn Capital 11,672,173 5.2 5.0 2.9 66 13.8 77 11.2 70 8.6 76 ----7.8 Aug-05 BofA Merrill Lynch High Yield Cash Pay 3.1 48 15.4 51 11.6 59 9.9 43 10.2 42 8.5 Aug-05 Over/Under -0.2 -1.6 -0.4 -1.3 -0.7 eA US High Yield Fixed Inc Gross Median 3.1 15.5 11.7 9.7 10.0 8.6 Aug-05 Loomis Credit Asset Fund 4,573,298 2.0 2.0 2.5 1 14.6 7 ------------9.9 Mar-10 50% BC Credit/ 25% S&P-LSTA/ 25% BC HY 1.7 34 11.0 71 9.1 86 8.0 86 7.3 48 9.0 Mar-10 Over/Under 0.8 3.6 0.9 eA US Corporate Fixed Inc Gross Median 1.5 11.6 10.0 8.9 7.2 9.7 Mar-10 Brandywine Global Bond 17,569,186 7.8 8.0 2.9 30 14.3 25 12.3 7 9.4 13 ----8.1 Jan-05 Citigroup WGBI -1.7 98 1.6 98 4.4 92 5.3 79 6.0 83 4.5 Jan-05 Over/Under 4.6 12.7 7.9 4.1 3.6 eA All Global Fixed Inc Gross Median 1.9 9.5 6.9 6.6 7.1 5.7 Jan-05 Pictet Emerging Local Curr. Debt Fd 11,543,870 5.2 5.0 3.6 64 16.2 86 ------------13.5 Oct-11 JP Morgan GBI - EM Diversified 4.1 40 16.8 80 9.9 83 8.9 79 12.3 67 13.6 Oct-11 Over/Under -0.5 -0.6 -0.1 eA All Emg Mkts Fixed Inc Gross Median 3.9 19.1 12.3 10.4 13.1 18.3 Oct-11 Tactical Asset Allocation Composite 22,296,706 10.0 10.0 2.1 24 11.2 43 7.4 43 4.5 36 ----6.9 Jun-03 S&P 500 -0.4 81 16.0 1 10.9 10 1.7 75 7.1 88 6.3 Jun-03 Over/Under 2.5 -4.8 -3.5 2.8 0.6 eA Global TAA Gross Median 1.1 10.6 7.0 3.2 10.5 8.4 Jun-03 GMO Asset Allocation Fund 22,296,706 10.0 10.0 2.1 24 11.2 43 7.4 43 4.5 36 ----6.1 Sep-06 65% MSCI World (Net) /35% BC Agg 1.7 29 11.9 29 7.1 49 1.8 75 7.0 88 3.8 Sep-06 Over/Under 0.4 -0.7 0.3 2.7 2.3 eA Global TAA Gross Median 1.1 10.6 7.0 3.2 10.5 5.2 Sep-06 Alternative Assets Pyramis Mkt Neutral 10,230,030 4.6 5.0 1.1 40 2.4 53 0.2 80 -0.9 75 ----4.3 Aug-05 91 Day T-Bill + 3% 0.8 43 3.1 50 3.1 55 3.4 51 4.7 71 4.7 Aug-05 Over/Under 0.3 -0.7 -2.9 -4.3 -0.4 eA|HFN Market Neutral Equity Net Median 0.1 3.0 3.4 3.6 5.7 4.9 Aug-05 36 December 31, 2012 Note: All performance shown is gross of fees. The ICC Public DB Universe is comprised of 125 state and local plans with combined assets of $1.2 trillion. The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Performance Detail Market Value ($) % of Portfolio Policy %3 Mo (%)Rank 1 Yr (%)Rank 3 Yrs (%)Rank 5 Yrs (%)Rank 10 Yrs (%)Rank Return (%)Since _ PIMCO All Asset 10,373,826 4.6 4.0 3.0 6 16.5 1 11.4 8 7.9 2 ----7.9 Jan-06 CPI + 5% 1.2 46 7.1 68 7.2 44 6.9 10 7.5 87 7.4 Jan-06 Over/Under 1.8 9.4 4.2 1.0 0.5 eA Global TAA Gross Median 1.1 10.6 7.0 3.2 10.5 5.5 Jan-06 UBS Realty - Trumbull Property Fund 9,751,253 4.4 5.0 1.6 --9.5 --13.0 --0.8 ------4.0 Jul-06 NCREIF ODCE 2.4 --10.9 --14.4 ---1.1 --6.7 --2.6 Jul-06 Over/Under -0.8 -1.4 -1.4 1.9 1.4 Wellington Diver. Inflation 10,735,447 4.8 5.0 -1.4 --5.7 --------------5.2 Mar-10 Wellington DIH Index 0.6 --9.8 --6.1 ---1.0 --6.6 --7.2 Mar-10 Over/Under -2.0 -4.1 -2.0 Cash 1,195,719 0.5 0.0 0.0 --0.1 --0.1 --0.7 --1.8 --1.8 Jun-03 BofA Merrill Lynch 91-Day T-Bill 0.0 --0.1 --0.1 --0.5 --1.8 --1.8 Jun-03 Over/Under 0.0 0.0 0.0 0.2 0.0 0.0 XXXXX 37 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Return Summary 38 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Return Summary vs. Peer Universe 39 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Return Summary vs. Peer Universe 40 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Risk Statistics vs. Peer Universe Composite vs. IF Public DB Gross 3 Years 41 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Risk Statistics vs. Peer Universe Composite vs. IF Public DB Gross 5 Years 42 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Composite 3 Years Ending December 31, 2012 % of Tot Anlzd Ret Rank Anlzd Std Dev Rank Anlzd AJ Rank Sortino Ratio RF Rank _ Composite 100.00% 8.78%37 9.11%53 0.52%46 1.37 54 Composite Allocation Index --7.98%64 8.77%49 0.00%62 1.41 48 Large Cap Equity Composite 19.54% 9.89%60 15.81%49 -1.28%60 0.99 61 S&P 500 --10.87%42 15.30%33 0.00%39 1.21 33 Small Cap Equity Composite 5.25% 14.13%41 17.76%15 3.66%28 1.41 20 Russell 2000 --12.25%69 20.48%62 0.00%74 1.01 66 International Equity Composite 10.38% 6.45%45 17.77%14 2.53%42 0.53 39 S&P EPAC LargeMidCap --4.39%78 19.64%56 0.00%77 0.33 77 International Emerging Composite 3.05% 6.45%50 20.00%19 2.24%48 0.46 46 MSCI Emerging Markets --4.66%62 21.80%56 0.00%62 0.32 60 Fixed Income Composite 32.93% 8.49%34 3.80%71 4.35%21 4.82 54 Barclays Int Govt/Credit --5.19%75 2.19%34 0.00%95 3.99 72 Tactical Asset Allocation Composite 9.96% 7.38%43 9.33%41 1.18%48 1.14 44 S&P 500 --10.87%42 15.30%33 0.00%39 1.21 33 XXXXX 43 December 31, 2012 5 Years Ending December 31, 2012 % of Tot Anlzd Ret Rank Anlzd Std Dev Rank Anlzd AJ Rank Sortino Ratio RF Rank _ Composite 100.00% 4.49%10 10.85%38 0.63%13 0.49 9 Composite Allocation Index --3.81%36 10.63%36 0.00%24 0.42 19 Large Cap Equity Composite 19.54% 1.45%65 18.65%38 -0.17%65 0.08 64 S&P 500 --1.66%61 19.04%46 0.00%61 0.09 60 Small Cap Equity Composite 5.25% 6.93%24 20.58%6 3.96%21 0.48 12 Russell 2000 --3.56%69 24.55%63 0.00%69 0.19 67 International Equity Composite 10.38% 0.01%25 20.23%7 2.32%31 -0.02 27 S&P EPAC LargeMidCap ---2.83%70 23.70%52 0.00%68 -0.18 70 International Emerging Composite 3.05% -1.77%75 28.46%39 -0.90%75 -0.10 76 MSCI Emerging Markets ---0.91%64 29.04%52 0.00%63 -0.06 64 Fixed Income Composite 32.93% 8.05%25 5.33%67 2.96%21 1.67 61 Barclays Int Govt/Credit --5.18%76 3.26%31 0.00%88 2.32 38 Tactical Asset Allocation Composite 9.96% 4.50%36 10.80%31 3.45%36 0.56 29 S&P 500 --1.66%61 19.04%46 0.00%61 0.09 60 XXXXX The Metropolitan St. Louis Sewer District Employees' Pension Plan Composite 44 Asset Allocation45 December 31, 2012 Note: A cash balance exists since benefits are paid from the Pension on the first business day each month. In addition, a small cash balance is maintained to meet ongoing liquidity needs. The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Asset Allocation vs. Policy Targets Asset Allocation vs. Target Current Policy Current Difference *Policy Range Within Range _ Large Cap Equity $43,745,838 20.0%19.5%-0.5%16.0% - 24.0%Yes Small/Mid Cap Equity $11,743,100 5.0%5.2%0.2%3.0% - 7.0%Yes Equity - International $23,232,447 10.0%10.4%0.4%8.0% - 12.0%Yes Equity - Emerging $6,816,129 3.0%3.0%0.0%2.0% - 5.0%Yes Core Bonds $28,346,535 13.0%12.7%-0.3%10.0% - 20.0%Yes High Yield Corporate Bonds $11,672,173 5.0%5.2%0.2%3.0% - 7.0%Yes Fixed Income - Emerging $11,543,870 5.0%5.2%0.2%3.0% - 7.0%Yes Global Bonds $17,569,186 8.0%7.8%-0.2%6.0% - 10.0%Yes Balanced - GAA $22,296,706 10.0%10.0%0.0%8.0% - 12.0%Yes Opportunistic Credit $4,573,298 2.0%2.0%0.0%0.0% - 5.0%Yes Absolute Return $10,373,826 4.0%4.6%0.6%3.0% - 7.0%Yes Market Neutral $10,230,030 5.0%4.6%-0.4%3.0% - 7.0%Yes Real Estate $9,751,253 5.0%4.4%-0.6%3.0% - 7.0%Yes Real Assets $10,735,447 5.0%4.8%-0.2%3.0% - 7.0%Yes Cash $1,195,719 --0.5%0.5%--No Total $223,825,557 100.0%100.0% XXXXX *Difference between Policy and Current Allocation 46 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Total Fund Asset Allocation History 47 Manager Summary 48 Manager Watch ListDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan2Q 2012 2Q 2012 3Q 2012 3Q 2012 4Q 2012 4Q 20123 Year Annualized PerformanceExcess Perf to BenchmarkRankExcess Perf to BenchmarkRankExcess Perf to BenchmarkRank ActionVanguard Windsor II 0.1 36 0.5 39-0.652Buford Dickson-6.095-5.595-4.194Waddell & Reed-3.382-2.769-1.664Vanguard Inst Index0.3230.1340.038Kennedy1.1161.3170.130TimesSquare2.1443.4292.241Morgan Stanley Intl Equity Fund2.2562.9482.846Morgan Stanley Emg Mkts Port.1.6491.6461.650Income Research2.4461.8121.712Penn Capital-1.764-0.769-0.470Loomis Credit Asset Fundn/an/an/an/an/an/aBrandywine Global Bond7.4167.1127.97Pictet Emg Mkts LCDn/an/an/an/an/an/aGMO Asset Allocation Fund0.3480.8370.343Pyramis Mkt Neutral-3.886-3.683-2.980PIMCO All Asset5.1373.7154.28UBS Realty - Trumbull Prop Fund0.2n/a-0.9n/a-1.4n/aWellington DIHn/an/an/an/an/an/aManager Probation Guidelines provide a performance based measure for inclusion on “watch” status. Managers who do not remain in the upper half of their universe and lag their index over a rolling 3-year period for three consecutive quarters will be considered for placement on watch status. The table above has highlighted in pale red managers that do not meet those performance guidelines. “N/A” indicates that the manager either does not have three years of performance or an appropriate universe for comparison.In addition to the performance measures, other scenarios could lead to “watch” status. These scenarios include changes in strategy, change in organizational structure or personnel, compliance related issues, changes in MSD’s asset allocation, or any other issue that requires heightened review.49 Manager Executive SummaryDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan50 Manager Executive SummaryDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan51 Manager Executive SummaryDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan52 Buford, Dickson, Harper & Sparrow•Gerald Sparrow is rejoining BDH&S as Chief Investment Officer. He will bring his asset base of approximately $45 million with him.•Gerald Sparrow will purchase ownership stake in firm. Other owners include Reginald Dickson, Tad Buford, Alex Ramos, David Harper, and Bill Young.•Investment Committee going forward will consist of Gerald Sparrow, Reginald Dickson, Alex Ramos, and Robert Gay.Pyramis•Effective December 31, 2012, Kevin Uebelein retired from his role as executive vice president, global head of Solutions Delivery. With Kevin’s retirement, Chuck McKenzie has moved from the Global Asset Allocation division to Pyramis, where he will lead all Asset Management’s institutional solutions efforts as global head of Institutional Solutions. •Pam R. Holding joined Pyramis Global Advisors in the new position of Head of Portfolio Management on January 7, 2013 and reports to CIO, Young Chin. She will be leading the U.S., Global/International, and Alternatives equity portfolio management teams (22 Portfolio managers, 8 Institutional Portfolio managers) in the day to day operations. •NO ACTIONManager UpdatesThe Metropolitan St. Louis Sewer District Employees’ Pension PlanDecember 31, 201253 GMO•A member of the GMO Asset Allocation team was terminated in late December 2012. Mr. Wang, an analyst, was terminated because he traded a security in his personal account after agreeing with his supervisor and our Chief Compliance Officer not to do so without prior approval.•NO ACTIONManager UpdatesDecember 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension Plan54 Manager Pages55 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Composite 3 Years Ending December 31, 2012 % of Tot Anlzd Ret Rank Anlzd Std Dev Rank Anlzd AJ Rank Sharpe Ratio Rank Sortino Ratio RF Rank _ Composite 100.00% 8.78% 37 9.11% 53 0.52% 46 0.95 44 1.37 54 Composite Allocation Index --7.98%64 8.77%49 0.00%62 0.90 62 1.41 48 Large Cap Equity Composite 19.54% 9.89% 60 15.81% 49 -1.28% 60 0.62 59 0.99 61 S&P 500 --10.87%42 15.30%33 0.00%39 0.71 36 1.21 33 Vanguard Windsor II 6.97% 10.35% 52 15.76% 52 -0.43% 53 0.65 54 1.04 54 Russell 1000 Value --10.86%41 15.73%52 0.00%45 0.69 44 1.11 42 Buford Dickson Harper & Sparrow 2.39% 7.29% 94 15.49% 24 -3.26% 80 0.47 89 0.75 89 Russell 1000 Growth --11.35%36 15.88%35 0.00%28 0.71 27 1.16 33 Waddell & Reed 6.86% 9.78% 64 17.06% 59 -2.27% 67 0.57 68 0.86 79 Russell 1000 Growth --11.35%36 15.88%35 0.00%28 0.71 27 1.16 33 Vanguard Institutional Index 3.32% 10.93% 38 15.30% 42 0.05% 40 0.71 39 1.22 35 S&P 500 --10.87%42 15.30%33 0.00%39 0.71 36 1.21 33 Small Cap Equity Composite 5.25% 14.13% 41 17.76% 15 3.66% 28 0.79 26 1.41 20 Russell 2000 --12.25%69 20.48%62 0.00%74 0.59 71 1.01 66 Kennedy 2.62% 13.54% 30 17.65% 62 -0.11% 43 0.76 42 1.26 34 Russell MidCap Value --13.39%36 16.99%42 0.00%40 0.78 35 1.29 27 TimesSquare Small Cap Growth Fund 2.63% 14.98% 41 18.25% 15 4.03% 27 0.82 27 1.41 27 Russell 2000 Growth --12.82%66 21.01%62 0.00%69 0.61 69 1.10 61 International Equity Composite 10.38% 6.45% 45 17.77% 14 2.53% 42 0.36 41 0.53 39 S&P EPAC LargeMidCap --4.39%78 19.64%56 0.00%77 0.22 77 0.33 77 Morgan Stanley Int'l Equity Fund 10.38% 6.36% 46 17.76% 14 3.18% 42 0.35 41 0.52 40 MSCI EAFE --3.56%87 19.65%56 0.00%87 0.18 87 0.27 86 International Emerging Composite 3.05% 6.45% 50 20.00% 19 2.24% 48 0.32 47 0.46 46 MSCI Emerging Markets --4.66%62 21.80%56 0.00%62 0.21 61 0.32 60 Morgan Stanley Inst Emg Mkt Port. 3.05% 6.32% 50 19.99% 19 2.11% 48 0.31 48 0.45 47 MSCI Emerging Markets --4.66%62 21.80%56 0.00%62 0.21 61 0.32 60 Fixed Income Composite 32.93% 8.49% 34 3.80% 71 4.35% 21 2.21 68 4.82 54 Barclays Int Govt/Credit --5.19%75 2.19%34 0.00%95 2.33 63 3.99 72 Income Research 12.66% 6.85% 12 2.48% 92 1.75% 20 2.73 43 5.99 17 Barclays Int Govt/Credit --5.19%75 2.19%34 0.00%95 2.33 63 3.99 72 Penn Capital 5.21% 11.20% 70 5.61% 20 2.11% 25 1.98 23 3.75 7 BofA Merrill Lynch High Yield Cash Pay --11.59%59 7.03%63 0.00%76 1.64 74 2.33 68 56 % of Tot Anlzd Ret Rank Anlzd Std Dev Rank Anlzd AJ Rank Sharpe Ratio Rank Sortino Ratio RF Rank _ Loomis Credit Asset Fund 2.04% -------------------- 50% BC Credit/ 25% S&P-LSTA/ 25% BC HY ---------------------- Brandywine Global Bond 7.85% 12.33% 7 6.65% 62 8.59% 14 1.84 26 3.26 22 Citigroup WGBI --4.37%92 5.59%46 0.00%94 0.77 86 1.03 83 Pictet Emerging Local Curr. Debt Fd 5.16% -------------------- JP Morgan GBI - EM Diversified ---------------------- Tactical Asset Allocation Composite 9.96% 7.38% 43 9.33% 41 1.18% 48 0.78 35 1.14 44 S&P 500 --10.87%42 15.30%33 0.00%39 0.71 36 1.21 33 GMO Asset Allocation Fund 9.96% 7.38% 43 9.33% 41 1.37% 47 0.78 35 1.14 44 65% MSCI World (Net) /35% BC Agg --7.06%49 10.71%51 0.00%73 0.65 63 1.04 56 Pyramis Mkt Neutral 4.57% 0.20% 80 5.40% 45 106.27% 35 0.02 80 0.03 80 91 Day T-Bill + 3%--3.09%55 0.01%1 0.00%46 217.04 1 ---- PIMCO All Asset 4.63% 11.35% 8 7.58% 23 3.59% 24 1.49 10 1.87 20 CPI + 5% --7.23%44 0.68%1 0.00%29 10.57 1 ---- UBS Realty - Trumbull Property Fund 4.36% 13.05% 99 5.70% 99 0.19% 99 2.27 99 920.86 99 NCREIF ODCE --14.40%99 6.23%99 0.00%99 2.30 99 1,017.23 99 Wellington Diver. Inflation 4.80% -------------------- Wellington DIH Index ---------------------- Cash 0.53% 0.10% 99 0.06% 99 0.02% 99 0.30 99 2.21 99 BofA Merrill Lynch 91-Day T-Bill --0.11%99 0.03%99 0.00%99 1.17 99 3.80 99 XXXXX December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Composite 57 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Composite 5 Years Ending December 31, 2012 % of Tot Anlzd Ret Rank Anlzd Std Dev Rank Anlzd AJ Rank Sharpe Ratio Rank Sortino Ratio RF Rank _ Composite 100.00% 4.49% 10 10.85% 38 0.63% 13 0.38 13 0.49 9 Composite Allocation Index --3.81%36 10.63%36 0.00%24 0.33 22 0.42 19 Large Cap Equity Composite 19.54% 1.45% 65 18.65% 38 -0.17% 65 0.06 65 0.08 64 S&P 500 --1.66%61 19.04%46 0.00%61 0.07 61 0.09 60 Vanguard Windsor II 6.97% 1.93% 47 19.55% 54 1.34% 47 0.08 47 0.11 47 Russell 1000 Value --0.59%74 20.18%68 0.00%74 0.01 74 0.02 74 Buford Dickson Harper & Sparrow 2.39% -1.64% 96 18.38% 24 -4.50% 96 -0.11 97 -0.14 96 Russell 1000 Growth --3.12%37 19.32%44 0.00%36 0.14 36 0.19 37 Waddell & Reed 6.86% 1.80% 67 18.78% 31 -1.21% 65 0.08 66 0.10 67 Russell 1000 Growth --3.12%37 19.32%44 0.00%36 0.14 36 0.19 37 Vanguard Institutional Index 3.32% 1.86% 60 19.08% 60 0.20% 60 0.08 60 0.11 59 S&P 500 --1.66%61 19.04%46 0.00%61 0.07 61 0.09 60 Small Cap Equity Composite 5.25% 6.93% 24 20.58% 6 3.96% 21 0.32 15 0.48 12 Russell 2000 --3.56%69 24.55%63 0.00%69 0.13 68 0.19 67 Kennedy 2.62% 7.67% 8 20.27% 23 4.41% 7 0.36 6 0.52 5 Russell MidCap Value --3.79%68 23.20%80 0.00%72 0.15 71 0.20 71 TimesSquare Small Cap Growth Fund 2.63% 7.34% 14 21.22% 9 4.36% 14 0.33 10 0.48 12 Russell 2000 Growth --3.49%54 24.83%68 0.00%54 0.13 54 0.19 53 International Equity Composite 10.38% 0.01% 25 20.23% 7 2.32% 31 -0.02 27 -0.02 27 S&P EPAC LargeMidCap ---2.83%70 23.70%52 0.00%68 -0.13 69 -0.18 70 Morgan Stanley Int'l Equity Fund 10.38% -0.04% 26 20.23% 7 3.03% 35 -0.02 27 -0.03 28 MSCI EAFE ---3.69%86 23.47%45 0.00%85 -0.17 85 -0.24 86 International Emerging Composite 3.05% -1.77% 75 28.46% 39 -0.90% 75 -0.07 76 -0.10 76 MSCI Emerging Markets ---0.91%64 29.04%52 0.00%63 -0.04 63 -0.06 64 Morgan Stanley Inst Emg Mkt Port. 3.05% -1.84% 75 28.45% 39 -0.97% 76 -0.08 77 -0.10 77 MSCI Emerging Markets ---0.91%64 29.04%52 0.00%63 -0.04 63 -0.06 64 Fixed Income Composite 32.93% 8.05% 25 5.33% 67 2.96% 21 1.45 55 1.67 61 Barclays Int Govt/Credit --5.18%76 3.26%31 0.00%88 1.48 53 2.32 38 Income Research 12.66% 7.11% 9 4.34% 93 1.52% 36 1.56 75 1.77 88 Barclays Int Govt/Credit --5.18%76 3.26%31 0.00%88 1.48 53 2.32 38 Penn Capital 5.21% 8.65% 76 10.37% 21 1.46% 52 0.80 48 0.69 77 BofA Merrill Lynch High Yield Cash Pay --9.89%43 13.94%88 0.00%85 0.68 81 0.68 80 58 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Composite % of Tot Anlzd Ret Rank Anlzd Std Dev Rank Anlzd AJ Rank Sharpe Ratio Rank Sortino Ratio RF Rank _ Loomis Credit Asset Fund 2.04% -------------------- 50% BC Credit/ 25% S&P-LSTA/ 25% BC HY ---------------------- Brandywine Global Bond 7.85% 9.39% 13 9.65% 66 5.03% 24 0.94 32 1.15 37 Citigroup WGBI --5.27%79 7.73%40 0.00%87 0.64 72 0.96 54 Pictet Emerging Local Curr. Debt Fd 5.16% -------------------- JP Morgan GBI - EM Diversified ---------------------- Tactical Asset Allocation Composite 9.96% 4.50% 36 10.80% 31 3.45% 36 0.38 37 0.56 29 S&P 500 --1.66%61 19.04%46 0.00%61 0.07 61 0.09 60 GMO Asset Allocation Fund 9.96% 4.50% 36 10.80% 31 3.08% 36 0.38 37 0.56 29 65% MSCI World (Net) /35% BC Agg --1.77%75 13.81%65 0.00%80 0.10 74 0.13 75 Pyramis Mkt Neutral 4.57% -0.93% 75 7.59% 49 27.89% 36 -0.17 72 -0.21 72 91 Day T-Bill + 3%--3.36%51 0.18%1 0.00%75 17.18 1 ---- PIMCO All Asset 4.63% 7.87% 2 11.68% 46 -0.10% 30 0.64 13 0.68 20 CPI + 5% --6.92%10 1.38%1 0.00%30 4.77 1 3.42 1 UBS Realty - Trumbull Property Fund 4.36% 0.76% 99 8.89% 99 1.55% 99 0.05 99 0.05 99 NCREIF ODCE ---1.10%99 11.20%99 0.00%99 -0.13 99 -0.14 99 Wellington Diver. Inflation 4.80% -------------------- Wellington DIH Index ---------------------- Cash 0.53% 0.65% 99 0.31% 99 0.15% 99 1.00 99 3.84 99 BofA Merrill Lynch 91-Day T-Bill --0.52%99 0.30%99 0.00%99 0.58 99 1.75 99 XXXXX 59 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Composite Equity Characteristics Portfolio Russell 3000 Number of Holdings 1,115 2,969 Weighted Avg. Market Cap. ($B)47.1 84.8 Median Market Cap. ($B)9.7 1.0 Price To Earnings 16.7 18.0 Price To Book 3.2 2.9 Price To Sales 2.1 2.2 Return on Equity (%)17.6 17.6 Yield (%)2.0 2.1 Beta 0.5 1.0 R-Squared 0.9 1.0 60 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Composite Top Negative Contributors Relative Contribution %Return % BANK OF AMERICA -0.1%31.6% ZALICUS (FRA)-0.1%-16.0% FORD MOTOR -0.1%31.9% CITIGROUP -0.1%20.9% JP MORGAN CHASE & CO.0.0%9.4% BG GROUP 0.0%-18.5% VODAFONE GROUP 0.0%-9.7% LOWE'S COMPANIES 0.0%18.0% WORLEYPARSONS 0.0%-17.6% YAHOO 0.0%24.6% _ Top Positive Contributors Relative Contribution %Return % APPLE 0.5%-19.8% EXXON MOBIL 0.1%-4.7% MICROSOFT 0.1%-9.5% CHEVRON 0.1%-6.4% MITSUBISHI ESTATE 0.1%23.4% RECKITT BENCKISER GROUP 0.1%9.5% INTERNATIONAL BUS.MCHS.0.1%-7.3% MERCK & CO.0.1%-8.3% GENERAL ELECTRIC 0.1%-6.7% UNILEVER CERTS.0.1%8.3% _ Top Ten Holdings MORGAN STANLEY INSTITUTIONAL EMERGING MARKETS FUND CLASS I 4.7% UNITED STATES TREASURY 3.1% CASH - USD 1.1% UST 1.875 05/15/22 When Iss 1.1% SMALL BUSINESS ADMINISTRATION GTD 1.0% FIRST AMERICAN PRIME OBLIGATION FUND CLASS Z 1.0% MXGV 8.500 05/31/29 0.9% ITALY, REPUBLIC OF (GOVERNMENT)0.8% MEXICO (UNITED MEXICAN STATES) (GOVERNMENT)0.8% UST Bill 11/14/13 0.8% Equity Sector Attribution Attribution Effects Returns Sector Weights Total Selection Allocation Interaction Effects Effect Effect Effects Portfolio Benchmark Portfolio Benchmark _ Energy -0.1% -0.1% 0.0% 0.0% -3.9% -2.6% 8.8% 10.2% Materials 0.1% 0.1% 0.0% 0.0% 6.6% 3.5% 3.9% 3.9% Industrials 0.2% 0.3% 0.0% 0.0% 7.5% 5.2% 10.4% 10.7% Cons. Disc.0.1% 0.2% 0.0% -0.1% 3.6% 2.9% 11.4% 12.2% Cons. Staples 0.2% 0.2% -0.1% 0.1% 0.7% -1.6% 13.0% 9.5% Health Care 0.1% 0.0% 0.0% 0.1% 0.1% -0.6% 12.0% 11.9% Financials 0.6% 0.8% 0.0% -0.2% 8.9% 4.9% 15.0% 16.0% Info. Tech 0.5% 0.6% 0.0% -0.2% -2.2% -4.8% 18.1% 19.1% Telecomm.-0.1% 0.0% -0.1% 0.0% -6.4% -5.6% 3.8% 2.9% Utilities 0.0% 0.0% 0.0% 0.0% -2.6% -2.4% 2.6% 3.5% Cash 0.0% -- -- -- -- -- 0.0% 0.0% Portfolio 1.6%=2.0%+-0.1%+-0.3% 1.8% 0.2% 98.9% 100.0% _ 61 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Vanguard Windsor II 62 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Vanguard Windsor II *The 3 Year Style Map is a returns-based graph 63 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Vanguard Windsor II Portfolio Fund Information as of 12/31/2012 Ticker VWNAX Morningstar Category Large Value Average Market Cap ($mm)48,625.3 Net Assets ($mm)19,534.9 % Assets in Top 10 Holdings 24.3 Total Number of Holdings 282 Manager Name James P. Barrow Manager Tenure 28 Expense Ratio 0.3% Closed to New Investors No Sector Allocation as of 12/31/2012 BASIC MATERIALS 1.4% COMMUNICATION SERVICES 4.0% CONSUMER CYCLICAL 5.4% CONSUMER DEFENSIVE 11.6% ENERGY 12.5% FINANCIAL SERVICES 19.6% HEALTHCARE 15.6% INDUSTRIALS 12.1% REAL ESTATE 0.1% TECHNOLOGY 10.3% Top Holdings as of 12/31/2012 PFIZER INC 3.0% PHILIP MORRIS INTERNATIONAL, INC.2.8% JPMORGAN CHASE & CO 2.5% JOHNSON & JOHNSON 2.5% AMERICAN EXPRESS CO 2.4% BAXTER INTERNATIONAL INC.2.3% WELLS FARGO & CO 2.2% MICROSOFT CORPORATION 2.2% CONOCOPHILLIPS 2.2% RAYTHEON COMPANY 2.1% Fund Characteristics as of 12/31/2012 Sharpe Ratio (3 Year) Average Market Cap ($mm)48,625.3 Price/Earnings 11.3 Price/Book 1.6 Price/Sales 1.1 Price/Cash Flow 5.8 Dividend Yield 2.8 Number of Equity Holdings 274 R-Squared (3 Year) Alpha (3 Year) 64 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Buford Dickson Harper & Sparrow 65 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Buford Dickson Harper & Sparrow *The 3 Year Style Map is a returns-based graph 66 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Buford Dickson Harper & Sparrow Top Negative Contributors Relative Contribution %Return % DOLLAR TREE -0.4%-16.0% EXPRESS SCRIPTS HOLDING -0.3%-13.8% BB&T -0.3%-11.7% BED BATH & BEYOND -0.3%-11.3% GOOGLE 'A'-0.1%-6.2% EMC -0.1%-7.2% TJX COS.-0.1%-5.0% EXXON MOBIL -0.1%-4.7% INTEL -0.1%-8.0% WAL MART STORES -0.1%-7.0% _ Top Positive Contributors Relative Contribution %Return % CUMMINS 0.6%18.1% APPLE 0.5%-19.8% FASTENAL 0.3%10.4% MICROSOFT 0.1%-9.5% VISA 'A'0.1%13.1% UNION PACIFIC 0.1%6.5% SIMON PR.GP.0.1%4.9% UNITED TECHNOLOGIES 0.1%5.5% CELGENE 0.0%2.7% SHERWIN-WILLIAMS 0.0%3.6% _ Equity Sector Attribution Attribution Effects Returns Sector Weights Total Selection Allocation Interaction Effects Effect Effect Effects Portfolio Benchmark Portfolio Benchmark _ Energy -0.1% -0.1% 0.0% 0.0% -4.3% -1.5% 4.4% 4.0% Materials -0.1% 0.0% -0.1% 0.0% 3.6% 4.2% 1.4% 3.8% Industrials 0.6% 0.2% 0.3% 0.1% 8.3% 6.9% 15.8% 11.7% Cons. Disc.-1.1% -1.2% 0.0% 0.1% -6.1% 1.0% 15.2% 16.4% Cons. Staples -0.2% -0.2% 0.0% 0.0% -4.4% -2.5% 12.5% 12.7% Health Care -0.4% -0.4% 0.0% 0.0% -3.3% -0.2% 13.0% 11.8% Financials -0.4% -0.4% 0.0% -0.1% -4.1% 4.5% 4.9% 4.3% Info. Tech 0.3% 0.2% 0.1% 0.0% -6.2% -6.8% 31.2% 32.6% Telecomm.0.0% -0.1% 0.0% 0.0% -4.0% -1.5% 1.5% 2.3% Utilities 0.0% -- 0.0% -- -- -6.7% 0.0% 0.2% Cash 0.0% -- -- -- -- -- 0.0% 0.0% Portfolio -1.6%=-2.0%+0.3%+0.1% -2.9% -1.3% 100.0% 100.0% _ Characteristics Portfolio Russell 1000 Growth Number of Holdings 45 571 Weighted Avg. Market Cap. ($B)106.5 97.8 Median Market Cap. ($B)64.4 6.3 Price To Earnings 19.7 20.3 Price To Book 5.5 4.9 Price To Sales 3.1 2.9 Return on Equity (%)33.4 25.6 Yield (%)1.7 1.8 Beta 0.9 1.0 R-Squared 0.9 1.0 67 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Waddell & Reed 68 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Waddell & Reed *The 3 Year Style Map is a returns-based graph 69 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Waddell & Reed Equity Sector Attribution Attribution Effects Returns Sector Weights Total Selection Allocation Interaction Effects Effect Effect Effects Portfolio Benchmark Portfolio Benchmark _ Energy -0.6% -0.3% 0.0% -0.2% -9.2% -1.5% 7.2% 4.0% Materials 0.0% 0.0% 0.0% 0.0% 4.4% 4.2% 4.1% 3.8% Industrials 0.0% 0.3% -0.3% -0.1% 9.8% 6.9% 8.6% 11.7% Cons. Disc.0.4% 0.2% 0.2% 0.1% 1.9% 1.0% 23.6% 16.4% Cons. Staples -0.1% -0.2% 0.0% 0.1% -4.0% -2.5% 9.2% 12.7% Health Care 0.0% 0.1% -0.1% -0.1% 1.0% -0.2% 5.0% 11.8% Financials 0.0% 0.1% -0.1% 0.0% 6.6% 4.5% 3.4% 4.3% Info. Tech 1.3% 1.4% -0.1% 0.1% -2.6% -6.8% 34.3% 32.6% Telecomm.0.2% 0.3% 0.0% -0.1% 12.6% -1.5% 1.5% 2.3% Utilities 0.0% -- 0.0% -- -- -6.7% 0.0% 0.2% Cash 0.0% -- -- -- -- -- 0.0% 0.0% Portfolio 1.3%=1.9%+-0.2%+-0.4% 0.0% -1.3% 96.9% 100.0% _ Top Negative Contributors Relative Contribution %Return % NATIONAL OILWELL VARCO -0.5%-14.5% APPLE -0.2%-19.8% PHILIP MORRIS INTL.-0.1%-6.1% DOLLAR GENERAL -0.1%-14.5% UNDER ARMOUR 'A'-0.1%-13.1% SCHLUMBERGER -0.1%-3.8% MEAD JOHNSON NUTRITION -0.1%-9.7% AUTOZONE -0.1%-4.1% GOOGLE 'A'-0.1%-6.2% CORE LABORATORIES 0.0%-9.8% _ Top Positive Contributors Relative Contribution %Return % VISA 'A'0.4%13.1% PREC.CASTPARTS 0.4%16.0% MASTERCARD 0.3%8.9% CBS 'B'0.2%5.1% CROWN CASTLE INTL.0.2%12.6% STARBUCKS 0.2%6.2% MONSANTO 0.2%4.4% KANSAS CTY.STHN.0.1%10.4% LAS VEGAS SANDS 0.1%6.4% AMERICAN TOWER 0.1%8.6% _ Characteristics Portfolio Russell 1000 Growth Number of Holdings 110 571 Weighted Avg. Market Cap. ($B)1.8 97.8 Median Market Cap. ($B)1.2 6.3 Price To Earnings 18.9 20.3 Price To Book 3.5 4.9 Price To Sales 2.9 2.9 Return on Equity (%)16.1 25.6 Yield (%)0.5 1.8 Beta 1.1 1.0 R-Squared 1.0 1.0 70 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Kennedy 71 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Kennedy *The 3 Year Style Map is a returns-based graph 72 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Kennedy Top Positive Contributors Relative Contribution %Return % TIMKEN 0.6%29.5% GILDAN ACTIVEWEAR 0.5%15.5% LINCOLN ELECTRIC HDG.0.4%25.2% STEEL DYNAMICS 0.3%23.1% HELMERICH & PAYNE 0.3%17.8% ON SEMICON.0.2%14.2% FOSSIL 0.2%9.9% METHANEX 0.2%12.3% AMERIPRISE FINL.0.2%11.3% HORMEL FOODS 0.2%7.3% _ Top Negative Contributors Relative Contribution %Return % ULTRA PTL.-0.4%-17.5% DARDEN RESTAURANTS -0.3%-18.4% SKYWORKS SLTN.-0.3%-13.8% ST.JUDE MEDICAL -0.3%-13.7% ENERGEN -0.2%-13.7% OIL STS.INTL.-0.2%-10.0% HUNTINGTON BCSH.-0.2%-6.7% CENTERPOINT EN.-0.1%-8.7% REINSURANCE GROUP OF AM.-0.1%-7.1% MARVELL TECH.GROUP -0.1%-20.1% _ Equity Sector Attribution Attribution Effects Returns Sector Weights Total Selection Allocation Interaction Effects Effect Effect Effects Portfolio Benchmark Portfolio Benchmark _ Energy -1.0% -0.7% 0.0% -0.3% -3.3% 4.5% 12.9% 9.1% Materials 0.1% 0.1% 0.0% 0.0% 8.2% 6.4% 6.1% 6.2% Industrials 0.3% 0.3% 0.0% 0.0% 11.9% 9.1% 10.6% 10.6% Cons. Disc.-0.1% -0.1% 0.0% -0.1% 4.2% 5.7% 10.7% 9.3% Cons. Staples 0.0% 0.0% 0.0% 0.0% 7.8% 6.8% 3.4% 4.8% Health Care -0.6% -0.4% 0.0% -0.1% -4.2% 2.0% 8.8% 7.1% Financials -0.5% -0.6% 0.0% 0.0% 0.6% 2.6% 28.4% 30.6% Info. Tech -0.4% -0.5% 0.0% 0.1% -0.9% 3.7% 8.3% 10.1% Telecomm.0.1% -- 0.1% -- -- -2.8% 0.0% 1.5% Utilities -0.2% -0.2% 0.0% 0.0% -1.6% 0.0% 10.9% 10.5% Cash 0.0% -- -- -- -- -- 0.0% 0.0% Portfolio -2.3%=-2.0%+0.1%+-0.4% 1.6% 3.9% 100.0% 100.0% _ Characteristics Portfolio Russell MidCap Value Number of Holdings 53 564 Weighted Avg. Market Cap. ($B)6.5 8.5 Median Market Cap. ($B)4.9 4.0 Price To Earnings 15.6 17.1 Price To Book 2.0 1.8 Price To Sales 1.8 1.6 Return on Equity (%)11.0 10.0 Yield (%)1.6 2.1 Beta 1.0 1.0 R-Squared 1.0 1.0 73 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan TimesSquare Small Cap Growth Fund 74 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan TimesSquare Small Cap Growth Fund *The 3 Year Style Map is a returns-based graph 75 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan TimesSquare Small Cap Growth Fund Top Positive Contributors Relative Contribution %Return % CYMER 0.6%77.1% SOLERA HOLDINGS 0.4%22.2% GENERAC HOLDINGS 0.3%49.9% ARBITRON 0.3%23.5% GENESEE & WYOMING 'A'0.2%13.8% CLEAN HARBORS 0.2%12.6% BIOMARIN PHARM.0.2%22.2% GULFPORT EN.0.2%22.3% WESCO INTL.0.2%17.9% DIGITALGLOBE 0.2%19.9% _ Top Negative Contributors Relative Contribution %Return % EBIX -0.3%-31.5% SWIFT ENERGY -0.2%-26.3% ACTIVE NETWORK -0.2%-60.8% CARDTRONICS -0.2%-20.2% BAZAARVOICE -0.2%-38.3% VOLTERRA SEMICON.-0.2%-21.5% ALLOT COMMUNICATIONS -0.2%-32.8% AMARIN ADR 1:1 -0.2%-35.7% CORPORATE EXEC.BOARD -0.2%-11.2% ULTIMATE SOFTWARE GP.-0.2%-7.5% _ Characteristics Portfolio Russell 2000 Growth Number of Holdings 131 1,120 Weighted Avg. Market Cap. ($B)7.9 1.5 Median Market Cap. ($B)1.5 0.6 Price To Earnings 16.3 18.3 Price To Book 3.2 4.0 Price To Sales 2.3 2.6 Return on Equity (%)14.4 13.6 Yield (%)1.0 0.4 Beta 0.9 1.0 R-Squared 1.0 1.0 Equity Sector Attribution Attribution Effects Returns Sector Weights Total Selection Allocation Interaction Effects Effect Effect Effects Portfolio Benchmark Portfolio Benchmark _ Energy 0.0% 0.0% 0.0% 0.0% -1.8% -2.4% 6.8% 5.8% Materials -0.1% -- -0.1% -- -- 3.5% 0.0% 4.6% Industrials 0.4% -0.2% 0.8% -0.1% 8.4% 9.9% 24.8% 16.4% Cons. Disc.0.1% 0.4% -0.1% -0.2% 3.5% 1.1% 7.5% 16.1% Cons. Staples 0.0% 0.0% 0.0% 0.0% -2.0% -2.2% 4.1% 4.7% Health Care 1.2% 0.8% 0.6% -0.3% -4.4% -8.0% 14.0% 21.9% Financials 0.2% 0.3% 0.0% 0.0% 7.4% 4.0% 6.6% 7.6% Info. Tech -0.6% -0.4% 0.0% -0.3% -1.4% 0.5% 35.3% 21.7% Telecomm.0.0% 0.0% 0.0% 0.0% -7.7% -4.7% 0.9% 0.9% Utilities 0.0% -- 0.0% -- -- -4.0% 0.0% 0.3% Cash 0.0% -- -- -- -- -- 0.0% 0.0% Portfolio 1.1%=0.8%+1.2%+-0.9% 1.5% 0.3% 100.0% 100.0% _ 76 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Morgan Stanley Int'l Equity Fund 77 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Morgan Stanley Int'l Equity Fund 78 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Morgan Stanley Int'l Equity Fund Top Positive Contributors Relative Contribution %Return % MITSUBISHI ESTATE 0.4%23.4% RECKITT BENCKISER GROUP 0.4%9.5% UNILEVER CERTS.0.3%8.3% HSBC HOLDINGS 0.3%12.5% NGK SPARK PLUG 0.2%24.9% SMITHS GROUP 0.2%18.5% SANOFI 0.2%10.3% LLOYDS BANKING GROUP 0.2%24.2% VALLOUREC 0.2%22.8% BAYER 0.2%10.0% _ Top Negative Contributors Relative Contribution %Return % WORLEYPARSONS -0.2%-17.6% ASTELLAS PHARMA -0.2%-12.1% LAWSON -0.1%-12.0% INPEX -0.1%-11.6% NTT DOCOMO INC -0.1%-11.9% HOYA -0.1%-11.3% BG GROUP -0.1%-18.5% VODAFONE GROUP -0.1%-9.7% MORRISON(WM)SPMKTS.-0.1%-7.2% ENCANA (NYS)-0.1%-9.0% _ Equity Sector Attribution Attribution Effects Returns Sector Weights Total Selection Allocation Interaction Effects Effect Effect Effects Portfolio Benchmark Portfolio Benchmark _ Energy -0.5% -0.3% 0.0% -0.1% -6.4% -0.7% 8.4% 8.3% Materials 0.0% -0.1% 0.0% 0.1% 9.9% 9.4% 7.3% 9.4% Industrials 0.2% 0.2% -0.2% 0.2% 12.3% 8.4% 6.9% 12.4% Cons. Disc.0.0% 1.1% -0.4% -0.7% 17.0% 12.3% 5.3% 10.2% Cons. Staples -0.6% 0.0% -0.7% 0.1% 3.3% 3.0% 26.9% 12.0% Health Care 0.3% 0.2% -0.1% 0.2% 5.1% 2.1% 12.4% 10.3% Financials 0.5% 1.2% -0.2% -0.5% 15.0% 11.4% 19.0% 23.6% Info. Tech -0.3% -0.1% 0.2% -0.5% 4.2% 9.9% 7.1% 4.3% Telecomm.-0.1% -0.1% 0.0% -0.1% -7.2% -4.7% 5.1% 5.4% Utilities 0.2% 0.0% 0.1% 0.0% 2.5% 1.4% 1.6% 4.0% Cash 0.0% -- -- -- -- -- 0.0% 0.0% Portfolio -0.3%=2.1%+-1.3%+-1.1% 6.3% 6.6% 100.0% 100.0% _ Characteristics Portfolio MSCI EAFE Number of Holdings 75 909 Weighted Avg. Market Cap. ($B)64.9 52.9 Median Market Cap. ($B)23.1 7.4 Price To Earnings 16.9 16.0 Price To Book 2.8 1.9 Price To Sales 1.7 1.5 Return on Equity (%)16.5 13.5 Yield (%)3.4 3.3 Beta 0.9 1.0 R-Squared 1.0 1.0 79 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Morgan Stanley Inst Emg Mkt Port. 80 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Morgan Stanley Inst Emg Mkt Port. 81 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Morgan Stanley Inst Emg Mkt Port. Portfolio Fund Information as of 12/31/2012 Ticker MGEMX Morningstar Category Diversified Emerging Mkts Average Market Cap ($mm)14,489.6 Net Assets ($mm)1,309.5 % Assets in Top 10 Holdings 19.9 Total Number of Holdings 177 Manager Name Paul Psaila Manager Tenure 19 Expense Ratio 1.3% Closed to New Investors No Top Holdings as of 12/31/2012 SAMSUNG ELECTRONICS CO LTD 5.1% TAIWAN SEMICONDUCTOR MANUFACTURING 1.9% TURKIYE GARANTI BANKASI 1.9% HYUNDAI MOTOR CO LTD 1.8% LUKOIL OIL COMPANY JSC ADR 1.7% BRF - BRASIL FOODS SA 1.7% WAL - MART DE MEXICO, S.A.B. DE C.V. CLASS V 1.6% COMPANHIA DE BEBIDAS DAS AMERICAS AMBEV ADR 1.5% TENCENT HOLDINGS LTD.1.4% ANADOLU EFES BIRACILIK VE MALT SANAYI A.S.1.3% Top Regions as of 12/31/2012 ASIA EMERGING 33.7% ASIA DEVELOPED 20.3% LATIN AMERICA 16.5% EUROPE EMERGING 10.4% AFRICA 3.8% Sector Allocation as of 12/31/2012 BASIC MATERIALS 8.5% COMMUNICATION SERVICES 4.6% CONSUMER CYCLICAL 10.6% CONSUMER DEFENSIVE 14.8% ENERGY 7.0% FINANCIAL SERVICES 19.1% HEALTHCARE 3.4% INDUSTRIALS 7.7% REAL ESTATE 2.5% TECHNOLOGY 12.8% UTILITIES 0.4% Top Countries as of 12/31/2012 South Korea 13.0% China 11.2% India 8.1% Brazil 7.1% Taiwan 6.4% Mexico 5.3% Philippines 5.2% Thailand 4.9% Turkey 4.4% Fund Characteristics as of 12/31/2012 Sharpe Ratio (3 Year)0.3 Average Market Cap ($mm)14,489.6 Price/Earnings 12.9 Price/Book 2.0 Price/Sales 1.0 Price/Cash Flow 6.2 Dividend Yield 1.8 Number of Equity Holdings 150 R-Squared (3 Year)1.0 Alpha (3 Year)0.2% 82 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Income Research 83 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Income Research *The 3 Year Style Map is a returns-based graph 84 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Income Research 85 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Penn Capital 86 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Penn Capital *The 3 Year Style Map is a returns-based graph 87 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Penn Capital 88 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Loomis Credit Asset Fund 89 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Loomis Credit Asset Fund *The 2 Year Style Map is a returns-based graph 90 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Brandywine Global Bond 91 December 31, 2012 The Metropolitan St. Louis Sewer District Employees' Pension Plan Brandywine Global Bond *The 3 Year Style Map is a returns-based graph 92 Pictet - EMD Local Currency December 31, 2012The Metropolitan St. Louis Sewer District Employees’ Pension PlanBenchmark is JPM GBI-EM Global DiversifiedSource: Pictet93 Asset AllocationHistorical AllocationGMO (Global Balanced Asset Allocation)The Metropolitan St. Louis Sewer District Employees’ Pension PlanDecember 31, 201294 Market Neutral - PyramisThe Metropolitan St. Louis Sewer District Employees’ Pension PlanDecember 31, 201295 Source: PIMCODecember 31, 2012PIMCO (All Asset Fund) The Metropolitan St. Louis Sewer District Employees’ Pension Plan96 UBS Trumbull Property FundDecember 31, 2012Portfolio Distribution by Property TypeKey StatisticsDistribution by Geographic DivisionThe Metropolitan St. Louis Sewer District Employees’ Pension Plan97 Wellington Diversified Inflation HedgesDecember 31, 2012Portfolio ReturnsActive Portfolio weightsAttribution ChartAsset Class Allocation Summary(1) See AppendixThe Metropolitan St. Louis Sewer District Employees’ Pension Plan98 " These materials contain summary information regarding the investment management approaches described herein and are not a complete description of the investment objectives, policies, guidelines or portfolio management and research that supports these approaches. This analysis does not constitute a recommendation to implement any of the aforementioned approaches. The information has been obtained from sources NEPC believes to be reliable, but we cannot guarantee its accuracy or completeness." Past performance is no guarantee of future results." NEPC research reports may contain confidential or proprietary information and are intended only for the designated recipient(s). If you are not a designated recipient, you may not copy or distribute this document.Information Disclosure99