cms.cityoftacoma.org … · Table of Contents . TACOMA EMPLOYEES’ RETIREMENT SYSTEM . 1st Quarter 2012. I. MARKET ENVIRONMENT . II. TOTAL FUND . III. U.S. EQUITY . NTGI S&P 500

Tacoma Employees' Retirement SystemInvestment Performance Analysis

March 31, 2012

Table of Contents

TACOMA EMPLOYEES’ RETIREMENT SYSTEM 1st Quarter 2012

I. MARKET ENVIRONMENT II. TOTAL FUND III. U.S. EQUITY

NTGI S&P 500 Index Composite Tab 1 NTGI Large Cap Growth Tab 2

NTGI Small Cap Core Tab 3 INTECH Tab 4

Research Affiliates Tab 5 IV. NON-U.S. EQUITY

DFA International Core Equity Tab 6 NTGI Canada Index SL Fund Tab 7 NTGI EAFE Index Fund Tab 8 NTGI EAFE Index Fund (Hedged) Tab 9 NTGI Emerging Markets Index Fund Tab 10

Research Affiliated Enhanched International Tab 11

1

2

V. TOTAL FIXED INCOME COMPOSITE VI. U.S. CORE FIXED INCOME BlackRock US Debt Index Fund Tab 12 Metropolitan West Tab 13 VII. HIGH YIELD Post Advisory Group Tab 14 VIII. U.S. TIPS Composite BlackRock U.S. TIPS Index Fund Tab 15 IX. REAL ESTATE Adelante Capital Management Tab 16 X. PRIVATE EQUITY XI. REAL ASSETS Tortoise MLP Tab 17 XI. GLOSSARY

Market EnvironmentOverview of Major Asset Classes

As of 3/31/12

1

Indices LegendReturns

Qtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs10 Year Std Dev

Standard & Poor’s 500Barclays AggregateMSCI ACWI X US (G)MSCI EAFE Index (N)MSCI EM Index (G)Citigroup Non-US WGBI91-Day Treasury BillConsumer Price Index

sarmfsnb

12.580.30

11.3410.8614.14-0.220.011.65

12.580.30

11.3410.8614.14-0.220.011.65

8.537.72

-6.74-5.77-8.523.930.062.65

23.416.84

19.6517.1325.426.930.132.55

2.016.25

-1.11-3.514.976.951.232.24

4.115.807.735.70

14.478.541.912.52

8.596.596.825.778.196.823.352.52

18.593.54

22.9522.3527.199.580.902.25

Ret

urn

0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.00.0

4.0

8.0

12.0

16.0

20.0

s

a

r

m

f

s

nb

Annual Standard Deviation

Last 10 Years(4/02 to 3/12)

Ret

urn

0.0 3.1 6.2 9.3 12.4 15.5 18.6 21.7 24.8 27.9 31.02.0

3.2

4.4

5.6

6.8

8.0

9.2

10.4

11.6

12.8

14.0

s

a

rm

f

sn

b

Annual Standard Deviation

Previous 10 Years(4/92 to 3/02)

Market EnvironmentU.S. Common Stocks

As of 3/31/12

2

ReturnsQtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs

IndicesStandard & Poor’s 500Wilshire 5000Wilshire 4500Wilshire US Large CapWilshire US Small CapWilshire Real Est. Secs StylesWilshire US Large GrowthWilshire US Large ValueWilshire US Small GrowthWilshire US Small Value Sectors (Wilshire 5000)Consumer DiscretionaryConsumer StaplesEnergyFinancialsHealth CareIndustrialsInformation TechnologyMaterialsTelecommunication ServicesUtilities

12.5812.7614.2112.6613.3110.93

15.599.90

12.7913.74

16.765.784.25

19.9010.1411.8120.8711.953.09

-1.57

12.5812.7614.2112.6613.3110.93

15.599.90

12.7913.74

16.765.784.25

19.9010.1411.8120.8711.953.09

-1.57

8.537.241.568.070.90

12.94

8.417.710.790.79

15.7616.98-7.79-0.6514.600.86

16.89-3.383.25

12.45

23.4124.1528.5623.2631.7144.82

24.0922.4332.6930.57

35.1520.8621.3321.7419.2229.0528.8426.2916.4917.15

2.012.273.532.164.10

-0.82

4.37-0.125.242.91

4.417.875.40

-10.004.692.357.703.520.331.91

4.114.957.984.558.37

10.33

4.554.478.298.31

5.497.02

11.77-0.524.165.445.158.293.716.54

8.598.689.348.57

10.2610.76

7.838.988.47

11.60

--------------------

Style Definitions (Wilshire Style Indices)

Large Co: Largest 750 companies in the Wilshire 5000

Small Co: Next 1750 companies in the Wilshire 5000

Value: Relatively low P/E and P/B ratios

Growth: Relatively high P/E and P/B ratios

Market EnvironmentU.S. Common Stocks

Growth of One Dollar Relative ReturnAs of 3/31/12

3

Small vs Large

03/02 03/03 03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/120.70

0.79

0.89

0.99

1.08

1.18

1.27

1.37

1.46

1.56

1.65

Small Favored

Large Favored

Growth vs Value

03/02 03/03 03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/120.70

0.75

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

Growth Favored

Value Favored

Based on Wilshire Style Indices

Market EnvironmentFixed Income Indices

As of 3/31/12

4

Indices LegendReturns

Qtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20YrsCharacteristics (Current Qtr)

Eff MaturityEff Duration Yld to MatBarclays AggregateBarclays TreasuryBarclays CreditBarclays MortgageCS High YieldCitigroup High GradeBarclays UniversalBarclays U.S. TIPS

alcmchut

0.30-1.292.040.575.02

-0.590.850.86

0.30-1.292.040.575.02

-0.590.850.86

7.728.579.586.216.74

18.627.58

12.20

6.843.90

12.325.26

22.6915.757.888.74

6.256.236.916.337.538.686.237.60

5.805.676.595.649.348.266.077.51

6.596.437.166.478.298.306.73

--

7.107.01

10.305.286.52

26.347.119.12

5.015.616.743.323.78

13.214.976.18

2.221.193.212.747.744.512.661.93

Ret

urn

Duration

Current Qtr

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0-2.5

-1.6

-0.7

0.2

1.1

2.0

2.9

3.8

4.7

5.6

6.5

a

l

c

m

c

h

u t

Ret

urn

Duration

Last Year

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.00.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

al

c

m c

h

u

t

Market EnvironmentU.S. Fixed Income Markets

Historical Spread Comparison to Treasuries As of 3/31/12

5

Cur

rent

Yie

ld S

prea

d

06/02 06/03 06/04 06/05 06/06 06/07 06/08 06/09 06/10 06/110.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Description LegendCurrent Qtr

SpreadMedian Spread

(10 Years)Barclays MortgageGIC’s 5 YearBarclays Long AgenciesAaa Long-Term Corporate IndexBarclays Long BAA CorpCS High Yield

2.02

1.231.063.046.90

2.15NA

0.580.992.296.49

Market EnvironmentU.S. Fixed Income Markets

Yield Spread To Treasuries As of 3/31/12

6

Yie

ld to

Mat

urity

0.0 5.0 10.0 15.0 20.0 25.00.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Maturity

Current TreasuryYie

ld to

Mat

urity

0.0 5.0 10.0 15.0 20.0 25.00.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Maturity

Treasury Yield Curve

1 Year Ago

Yie

ld to

Mat

urity

0.0 5.0 10.0 15.0 20.0 25.0 30.0-1.0

0.3

1.6

2.9

4.2

5.5

6.8

8.1

9.4

10.7

12.0

a

l

cm

c

h

ut

Maturity

Comparative Yields

Current Treasury

Description Legend Eff Maturity Yield to MatBarclays AggregateBarclays TreasuryBarclays CreditBarclays MortgageCS High YieldCitigroup High GradeBarclays UniversalBarclays U.S. TIPS

alcmchut

7.107.01

10.305.286.52

26.347.119.12

2.221.193.212.747.744.512.661.93

Market EnvironmentInternational Markets

As of 3/31/12

7

ReturnsQtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs

10 Year Std Dev

Equity(in U.S. dollars)U.S. (S & P 500)Non U.S. (ACWI X U.S.) NetDeveloped (EAFE) NetEmerging (Emg Mkts) NetEuropePacificFranceGermanyJapanUnited Kingdom

Equity(in local currency)Non U.S. (ACWI X US) NetDeveloped (EAFE) NetEmerging (Emg Mkts) NetEuropePacificFranceGermanyJapanUnited Kingdom

% Change in Exchange RatesEuro vs DollarYen vs DollarPound vs Dollar

International Fixed IncomeCitigroup Non-US Gov’t BondCitigroup World BondCitigroup Non-US HedgedBarclays Global Aggregate

12.5811.2310.8614.0810.6611.2712.2220.9111.267.63

10.1410.5210.617.74

15.789.45

17.9019.104.85

2.58-6.512.81

-0.22-0.511.320.87

12.5811.2310.8614.0810.6611.2712.2220.9111.267.63

10.1410.5210.617.74

15.789.45

17.9019.104.85

2.58-6.512.81

-0.22-0.511.320.87

8.53-7.17-5.77-8.80-7.54-2.03

-15.62-7.840.261.05

-3.85-3.40-3.23-4.03-2.10-9.14-1.13-0.291.84

-6.160.71

-0.32

3.935.126.385.26

23.4119.1217.1325.0717.5816.5711.9718.6611.9322.32

14.2412.4820.3614.898.54

12.3018.795.40

18.24

0.106.273.69

6.936.233.407.52

2.01-1.56-3.514.67

-3.99-2.42-5.92-1.63-5.20-2.34

-2.94-5.205.05

-3.41-8.26-5.71-1.52

-11.771.88

0.017.49

-4.02

6.956.784.426.37

4.117.285.70

14.135.436.413.966.283.945.58

3.381.56

12.331.891.44

-0.231.94

-0.884.45

4.324.881.16

8.547.894.617.34

8.59--

5.77--

7.683.096.506.971.257.42

--4.52

--7.410.765.906.49

-1.157.90

--2.44

-0.41

6.826.706.576.58

18.5922.9222.3527.1824.6820.0827.1331.4319.9922.57

18.6918.7021.5619.7819.0722.3026.9921.3917.12

10.9410.8610.68

9.588.053.206.30

Market EnvironmentU.S. Dollar Cost of Foreign Currencies

As of 3/31/12

8

U.S

. Dol

lar

Cos

t (L

og S

cale

)

06/02 09/03 12/04 03/06 06/07 09/08 12/09 03/11-0.40

-0.30

-0.20

-0.10

-0.00

0.10

0.20

0.30

0.40

0.50

Weaker U.S. Dollar

Stronger U.S. Dollar

Description LegendJapanese YenU.K. Pound SterlingEuroCanadian DollarChinese Yuan

Tacoma Employees’ Retirement SystemAsset Allocation

Total FundQuarter Ended 3/31/12

1

Manager Name Equity$(000) %

Bonds$(000) %

Cash$(000) %

IntlEquity

$(000) %

IntlBonds

$(000) %

RealEstate

$(000) %

SpecialInvest

$(000) %Other

$(000) %

As AllocatedTo Manager$(000) %

NTGI S&P 500 Index FundNTGI Large Cap GrowthNTGI Small Cap CoreINTECHResearch AffiliatesDomestic Equity Composite

BlackRock US Debt Index FundMetropolitan WestCore Fixed Income Composite

Prudential EMDEmerging Market Debt Composite

Cash/Sec-LendCash/Sec-Lend Composite

NTGI Canada Index SL FundNTGI EAFE Index FundCurrency Overlay AccountNTGI Emerging Markets Index FundDFA International Core EquityRAFI Enhanced Int’lTT InternationalInt’l Equity Composite

Adelante Capital MgmntINVESCO Core Real Estate U.S.A., LLCReal Estate Composite

NTGI S&P 500HarbourVest Dover Street VIIHarbourVest Int’l Private Equity VIHarbourVest IX-Venture Fund

109,50429,29728,89434,88143,652

246,229

0

0

0

0

0

0

86,283

9.42.52.53.03.8

21.2

0.00.00.0

0.00.0

0.00.0

0.00.00.00.00.00.00.00.0

0.00.00.0

7.40.00.00.0

0

29,272164,992194,264

45,00045,000

0

0

0

0.00.00.00.00.00.0

2.514.216.7

3.93.9

0.00.0

0.00.00.00.00.00.00.00.0

0.00.00.0

0.00.00.00.0

0

0000

-513-513

0

3,0353,035

0666

0

296962

2,5640

2,564

0

0.00.00.00.00.00.0

0.0-0.0-0.0

0.00.0

0.30.3

0.00.00.10.00.00.00.00.1

0.20.00.2

0.00.00.00.0

0

0

0

0

10,347103,807

67,04458,89457,122

89297,303

0

0.00.00.00.00.00.0

0.00.00.0

0.00.0

0.00.0

0.98.90.05.85.14.90.0

25.6

0.00.00.0

0.00.00.00.0

0

0

0

0

0

0

0.00.00.00.00.00.0

0.00.00.0

0.00.0

0.00.0

0.00.00.00.00.00.00.00.0

0.00.00.0

0.00.00.00.0

0

0

0

0

0

48,63148,76297,393

0.00.00.00.00.00.0

0.00.00.0

0.00.0

0.00.0

0.00.00.00.00.00.00.00.0

4.24.28.4

0.00.00.00.0

0

0

0

0

0

0

19,489894101

0.00.00.00.00.00.0

0.00.00.0

0.00.0

0.00.0

0.00.00.00.00.00.00.00.0

0.00.00.0

0.01.70.10.0

0

0

0

0

0

0

0.00.00.00.00.00.0

0.00.00.0

0.00.0

0.00.0

0.00.00.00.00.00.00.00.0

0.00.00.0

0.00.00.00.0

109,50429,29728,89434,88143,652

246,229

29,272164,479193,751

45,00045,000

3,0353,035

10,347103,807

66667,04458,89457,122

385298,264

51,19548,76299,957

86,28319,489

894101

9.42.52.53.03.8

21.2

2.514.116.7

3.93.9

0.30.3

0.98.90.15.85.14.90.0

25.6

4.44.28.6

7.41.70.10.0

Tacoma Employees’ Retirement SystemAsset Allocation


2

Manager Name Equity$(000) %

Bonds$(000) %

Cash$(000) %

IntlEquity

$(000) %

IntlBonds

$(000) %

RealEstate

$(000) %

SpecialInvest

$(000) %Other

$(000) %

As AllocatedTo Manager$(000) %

HarbourVest IX-Buyout FundHarbourVest IX-Credit Opp FundPantheon Global Secondary Fund IVHamilton Lane Fund VII (Series A)Hamilton Lane Fund VII (Series B)Private Equity Composite

Tortoise MLPReal Assets Composite

BlackRock US TIPS Index FundTIPS Composite

Post Advisory GroupEaton VanceHigh Yield Composite

As Invested by ManagersAs Allocated to ManagersTotal Fund Policy Targets

86,283

0

0

0

0

332,512246,229267,574

0.00.00.00.00.07.4

0.00.0

0.00.0

0.00.00.0

28.621.223.0

0

0

25,86225,862

66,70331,03397,737

362,863193,751378,094

0.00.00.00.00.00.0

0.00.0

2.22.2

5.72.78.4

31.216.732.5

0

834834

0

1,2150

1,215

8,0983,035

0

0.00.00.00.00.00.0

0.10.1

0.00.0

0.10.00.1

0.70.3

0

0

0

0

297,303298,264273,391

0.00.00.00.00.00.0

0.00.0

0.00.0

0.00.00.0

25.625.623.5

0

0

0

0

000

0.00.00.00.00.00.0

0.00.0

0.00.0

0.00.00.0

00

0

0

0

0

97,39399,95793,069

0.00.00.00.00.00.0

0.00.0

0.00.0

0.00.00.0

8.48.68.0

11648

4,6192,0521,462

28,781

0

0

0

28,781115,064116,337

0.00.00.40.20.12.5

0.00.0

0.00.0

0.00.00.0

2.59.9

10.0

0

36,41736,417

0

0

36,417207,06534,901

0.00.00.00.00.00.0

3.13.1

0.00.0

0.00.00.0

3.117.83.0

11648

4,6192,0521,462

115,064

37,25137,251

25,86225,862

67,91831,03398,952

1,163,3651,163,3651,163,365

0.00.00.40.20.19.9

3.23.2

2.22.2

5.82.78.5

100.0100.0100.0

Tacoma Employees’ Retirement SystemAsset Allocation - as Invested by Managers

Total FundQuarters Ended 3/31/12

3

Domestic EquityIntl EquityDomestic FixedReal EstateCash & EquivSpecial InvestOther

0

10

20

30

40

50

60

70

80

90

100

Actual (Target) 06/09 09/09 12/09 03/10 06/10 09/10 12/10 03/11 06/11 09/11 12/11 03/12Domestic Equity %Intl Equity %Domestic Fixed %Real Estate %Cash & Equiv %Special Invest %Other % Total Value ($mil)

28.3 (21.0)22.6 (21.0)37.8 (25.0)

6.3 (8.0)4.5 (0.0)

0.4 (10.0)0.0 (15.0)

805.6

30.9 (21.0)22.2 (21.0)36.0 (25.0)

7.1 (8.0)3.4 (0.0)

0.4 (10.0)0.0 (15.0)

918.7

31.0 (21.0)20.9 (21.0)37.2 (25.0)

7.5 (8.0)3.1 (0.0)

0.4 (10.0)0.0 (15.0)

960.6

32.4 (21.0)21.4 (21.0)33.8 (25.0)

7.8 (8.0)4.2 (0.0)

0.4 (10.0)0.0 (15.0)

1002.2

31.6 (23.5)21.0 (23.5)36.0 (28.0)

8.1 (8.0)2.9 (0.0)

0.4 (10.0)0.0 (7.0)

942.3

32.3 (23.5)22.4 (23.5)37.0 (28.0)

4.1 (8.0)3.6 (0.0)

0.6 (10.0)0.0 (7.0)

1025.4

33.3 (23.5)23.3 (23.5)36.5 (28.0)

8.0 (8.0)-1.8 (0.0)0.7 (10.0)0.0 (7.0)

1081.7

33.7 (23.5)22.5 (23.5)34.0 (28.0)

8.1 (8.0)0.4 (0.0)

1.3 (10.0)0.0 (7.0)

1114.3

32.8 (23.5)22.6 (23.5)34.1 (28.0)

8.4 (8.0)0.3 (0.0)

1.8 (10.0)0.0 (7.0)

1128.3

31.1 (23.5)16.2 (23.5)34.8 (26.0)

8.9 (8.0)3.6 (0.0)

2.3 (10.0)3.1 (9.0)

1004.7

27.5 (23.0)24.9 (23.5)31.8 (32.5)

8.7 (8.0)1.2 (0.0)

2.5 (10.0)3.3 (3.0)

1088.0

28.6 (23.0)25.6 (23.5)31.2 (32.5)

8.4 (8.0)0.7 (0.0)

2.5 (10.0)3.1 (3.0)

1163.4

Tacoma Employees’ Retirement SystemFund Return TableQuarter Ended 3/31/12

4

Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 YearsSince

3/31/02Inception

DateInception

ReturnTotal Fund Policy Index TERS Expected Return TERS Actuarial Return

Global Equity Composite

Domestic Equity Composite

Int’l Equity Composite (Unhedged)

Int’l Equity Composite

Indices Russell Global Eq(1/2Hedge Dev. X-US) MSCI EAFE Hedged ND Russell 3000 Standard & Poor’s 500 Wilshire 5000 MSCI EAFE Index (N) MSCI Emerging Mkts (N) MSCI ACWI X US (N)

7.777.942.041.88

11.71

12.27

11.60

11.27

12.1810.1712.8712.5812.7610.8614.0811.23

14.5814.844.123.80

25.78

15.30

14.72

14.9426.5525.8826.3214.5619.1315.37

3.744.286.245.76

6.81

-9.03

-7.92

-3.157.218.437.32

-7.22-7.74-7.53

5.005.538.407.75

6.93

-7.71

-7.48

-3.917.188.537.24

-5.77-8.80-7.17

19.5219.788.407.75

24.19

18.29

16.61

12.4824.2523.4124.1517.1325.0719.12

2.072.148.407.75

1.66

-3.28

-4.36

-4.742.172.012.27

-3.514.67

-1.56

6.936.298.407.77

5.29

5.98

5.38

4.674.114.955.70

14.137.28

6/30/79

6/30/79 6/30/79

12/31/11

9/30/84

3/31/88

3/31/88

Since 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88

9.26

9.587.34

11.71

10.89

4.45

4.21

9.799.739.724.47


5


3/31/02Inception

DateInception

ReturnTotal Fixed Income Composite

Core Fixed Income Composite

High Yield Composite

TIPS Composite

Real Estate Composite

Private Equity Composite

Real Assets Composite

Cash/Sec-Lend Composite

Indices Barclays Aggregate ML US High Yld. BB/B Const. Barclays U.S. TIPS Wilshire REIT Index Alerian MLP Index 91-Day Treasury Bill

2.86

2.52

4.24

0.84

6.07

9.29

2.38

1.49

0.304.430.86

10.791.970.01

5.09

3.85

8.60

3.49

15.61

18.41

20.04

3.31

1.4310.573.57

27.8718.630.01

5.82

5.66

4.82

8.58

8.04

7.19

7.17

5.305.018.259.15

10.360.03

7.46

7.48

5.55

13.70

8.36

11.06

7.726.19

12.2013.399.550.06

13.82

12.13

16.57

42.20

23.73

18.64

6.8419.988.74

44.6935.770.13

7.87

8.07

6.77

-3.29

2.93

6.257.237.60

-0.6711.861.23

7.21

7.21

9.57

2.76

5.808.227.51

10.4115.991.91

12/31/93

9/30/81

9/30/05

6/30/11

3/31/88

3/31/09

9/30/11

12/31/99

Since 12/31/9912/31/9912/31/9912/31/9912/31/9912/31/99

6.83

9.92

7.15

8.58

5.50

23.73

20.04

3.14

6.366.937.96

12.6319.702.45

Tacoma Employees’ Retirement SystemPerformance Comparison

Total Returns of Total Fund PortfoliosPeriods Ended 3/31/12

6

-4%-2%0%2%4%6%8%

10%12%14%16%18%20%22%24%26%

* A

* A

* A* A

* A

* A

* A

* A Med

75th

95th

25th

5th

Rat

e of

Ret

urn

* Total FundA Policy Index MedianNumber of Funds

1 Quarter 2 Quarters 3 Quarters 1 Year 2 Years 3 Years 5 Years 10 Years

7.77 (38)7.94 (35)

7.15530

14.58 (36)14.84 (34)

13.15

529

3.74 (31)4.28 (23)

2.72526

5.00 (27)5.53 (20)

3.60525

8.84 (31)8.81 (31)

7.82508

19.52 (11)19.78 (10)

15.04

464

2.07 (74)2.14 (72)

3.01409

6.93 (10)6.29 (27)

5.56251

Tacoma Employees’ Retirement SystemSources of Fund Growth


7

Manager Name

BeginningValue$(000)

NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)NTGI S&P 500 Index FundNTGI Large Cap GrowthNTGI Small Cap CoreINTECHResearch AffiliatesDomestic Equity Composite

BlackRock US Debt Index FundMetropolitan WestCore Fixed Income Composite

Prudential EMDEmerging Mkt Debt Composite

Cash/Sec-LendCash/Sec-Lend Composite

NTGI Canada Index SL FundNTGI EAFE Index FundCurrency Overlay AccountNTGI Emerging Markets Idx FdDFA International Core EquityRAFI Enhanced Int’l

99,10126,43226,57631,44339,468

223,021

29,179195,789224,968

00

10,80610,806

9,71393,550

50863,09052,19252,092

-1,989-997-994

00

-3,979

5-36,887-36,882

45,00045,000

14,07914,079

016

1,005-4,976

00

000

530

53

022

00

21,91821,918

000000

1136

276

54

5113118

00

00

0210

240

43

12,4033,8653,3183,5194,190

27,295

935,6915,784

00

6969

63510,262

-8488,9556,7025,072

109,50429,29728,89434,88143,652

246,229

29,272164,479193,751

45,00045,000

3,0353,035

10,347103,807

66667,04458,89457,122

12.5814.6712.4811.1210.6012.27

0.302.852.52

NANA

1.491.49

6.5410.89

NA 14.0212.849.66



8

Manager Name


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)TT InternationalInt’l Equity Composite

Adelante Capital MgmntINVESCO Core Real Estate Real Estate Composite

NTGI S&P 500HarbourVest Dover Street VIIHarbourVest Int’l Private Eq VIHarbourVest IX-Venture FundHarbourVest IX-Buyout FundHarbourVest IX-Credit Opp FundPantheon Glob Secondary Fd IVHamilton Lane Fund VII (Ser A)Hamilton Lane Fund VII (Ser B)Private Equity Composite

BlackRock US TIPS Index FundTIPS Composite

Post Advisory GroupEaton Vance

406271,550

49,01548,09297,106

76,63219,102

629691530

4,7081,3541,187

103,727

25,64325,643

64,76430,113

0-3,955

-2,9430

-2,943

1040027333

101160

720300

1,852

33

500

00

101

0161

1010032

169

00

20

087

57111167

106321131

501812

178

33

500

-2130,757

5,181781

5,962

9,65121014043

-39-1

-119,831

219219

3,157920

385298,264

51,19548,76299,957

86,28319,489

89410111648

4,6192,0521,462

115,064

25,86225,862

67,91831,033

NA11.27

10.791.396.07

12.580.76

-0.87-1.201.177.13

-1.89-1.09-1.729.29

0.840.84

4.803.06



9

Manager Name


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)High Yield Composite

Tortoise MLPReal Assets Composite

Total Fund

94,877

36,29736,297

1,087,994

50

9393

13,317

2

00

22,145

50

9393

750

4,077

955955

84,949

98,952

37,25137,251

1,163,365

4.24

2.382.38

7.77

Tacoma Employees’ Retirement SystemSources of Portfolio Growth


10

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/7912/79

03/8006/8009/8012/80198003/8106/8109/8112/81198103/8206/8209/8212/82198203/8306/8309/8312/83198303/8406/84

NANA

NANANANANANANANANANANANANANANANANANANANANANA

NANA


NANA


NANA


NANA


NANA

NANANANANANANANANANANANANANANANANANANANANA

101,646

0.64-3.77

-8.4817.88-3.294.999.54

-0.60-2.32-7.958.51

-3.021.471.96

14.1811.1531.305.635.57

-2.32-1.197.63

-3.30-2.80



11

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/8412/84198403/8506/8509/8512/85198503/8606/8609/8612/86198603/8706/8709/8712/87198703/8806/8809/8812/88198803/8906/89

101,646108,864

NA115,098120,277130,537130,762115,098143,301156,140161,029156,826143,301164,161180,295188,539184,040164,161172,000180,196187,429188,753172,000193,484200,688

NA1,633

NA-2,168

-300961

0-1,507

000000

-53-7,3387,143-249

-1,157-58228

-1,570-2,5563,4933,773

NANANANANANANANANANANANANANANANANANANANANANANA

4,3933,864

NANANANANANANANANANANANANANANANANANANANANANANA4146

NA4,601

NA7,347

10,560-735

12,53929,71112,8384,889

-4,2037,335

20,86016,1348,2972,839

-19,1828,0879,3537,2911,0966,300

24,0408,145

12,176

108,864115,098115,098120,277130,537130,762143,301143,301156,140161,029156,826164,161164,161180,295188,539184,040172,000172,000180,196187,429188,753193,484193,484200,688212,728

4.604.893.124.777.85

-0.3910.2624.109.472.92

-2.214.73

15.399.860.641.63

-5.925.714.393.950.412.04

11.184.146.03



12

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/8912/89198903/9006/9009/9012/90199003/9106/9109/9112/91199103/9206/9209/9212/92199203/9306/9309/9312/93199303/9406/94

212,728227,759193,484231,889222,330233,938211,599231,889225,340250,022249,138265,669225,340284,593276,794277,700287,806284,593306,908320,640332,869350,306306,908359,243348,337

3,7593,896

14,9213,8384,1217,5424,438

19,9396,4214,3064,3455,418

20,4904,4344,7974,714

13,72227,6674,557

10,8345,0846,153

26,6284,8455,691

3,4962,616

14,3694,8304,0406,8313,323

19,0247,1744,2494,4102,966

18,7985,1394,2034,2918,507

22,1408,089

10,9834,8595,069

29,0014,7735,154

5149

1864447430

134093

62740

191173216580232295302317

1,146310387

14,8192,899

38,039-8,52311,574

-23,00612,625-7,33125,435

-93316,59916,53557,636-7,094

5039,856

14,10317,36817,49612,67417,5148,171

55,855-10,668-3,303

227,759231,889231,889222,330233,938211,599225,340225,340250,022249,138265,669284,593284,593276,794277,700287,806306,908306,908320,640332,869350,306359,243359,243348,337345,185

6.951.33

19.66-3.795.19

-9.765.93

-3.2610.80-0.416.686.18

24.99-2.470.113.474.665.735.683.865.172.24

18.02-3.04-1.06



13

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/9412/94199403/9506/9509/9512/95199503/9606/9609/9612/96199603/9706/9709/9712/97199703/9806/9809/9812/98199803/9906/99

345,185357,362359,243356,377375,714399,275422,443356,377446,312453,553463,080470,167446,312489,940477,431530,648560,925489,940557,727594,835593,550543,267557,727601,518594,669

6,1745,781

22,4925,2775,5195,2185,533

21,5475,7105,9706,5556,280

24,5154,9855,3615,2087,794

23,3494,8955,2424,1366,536

20,8095,2208,992

4,7254,018

18,6706,3155,1475,2073,906

20,5766,6135,9506,6854,285

23,5337,6276,3907,4007,271

28,6898,8795,3468,1115,492

27,8279,279

10,424

266312

1,275329341362371

1,404382391397405

1,576392411426479

1,708463464430442

1,800562532

10,994-2,436-5,41320,70423,53023,51922,61490,3678,5269,8997,614

18,18344,222-9,47554,65732,895-3,24374,83441,555

-716-45,87857,64952,610-2,22834,290

357,362356,377356,377375,714399,275422,443446,312446,312453,553463,080470,167489,940489,940477,431530,648560,925557,727557,727594,835593,550543,267601,518601,518594,669626,995

3.11-0.77-1.855.756.175.805.26

25.031.832.101.553.589.36

-2.0311.386.13

-0.6515.077.43

-0.19-7.4210.9410.13-0.165.66



14

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/9912/99199903/0006/0009/0012/00200003/0106/0109/0112/01200103/0206/0209/0212/02200203/0306/0309/0312/03200303/0406/04

626,995606,419601,518692,561723,219709,121726,379692,561712,912669,381694,336645,147712,912712,676693,758664,083589,443712,676613,142601,089682,181713,638613,142783,146817,369

6,0986,581

26,8916,3716,5046,8356,240

25,9505,5155,1606,044

36,10652,8246,1245,4586,2175,660

23,4606,0568,9269,687

10,40135,0707,1708,658

7,8435,270

32,81610,1806,7967,7636,245

30,9849,4727,9128,3186,518

32,22040,2608,4608,1495,999

62,86810,38211,46412,08012,18346,10912,4439,272

410620

2,125504679702658

2,542636640636627

2,539577365297

01,238

159339366455

1,319392517

-18,42085,45199,09334,970

-13,12618,888

-12,80527,927

-38,93828,348

-46,27938,567

-18,30215,794

-26,308-72,41224,038

-58,888-7,56883,96934,21771,744

182,36239,888-9,228

606,419692,561692,561723,219709,121726,379712,912712,912669,381694,336645,147712,676712,676693,758664,083589,443613,142613,142601,089682,181713,638783,146783,146817,369807,011

-3.0114.0516.705.01

-1.912.57

-1.863.69

-5.584.15

-6.785.87

-2.952.24

-3.61-11.07

4.11-8.76-1.2613.924.929.99

29.825.06

-1.19



15

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/0412/04200403/0506/0509/0512/05200503/0606/0609/0612/06200603/0706/0709/0712/07200703/0806/0809/0812/08200803/0906/09

807,011808,184783,146893,229862,052894,912931,754893,229959,227

1,020,3371,006,0031,047,593

959,2271,121,7091,138,4081,163,8501,183,7671,121,7091,149,4661,079,1131,057,969

958,0261,149,466

767,447701,709

4,45110,66530,9447,4747,7578,730

12,98836,95011,44516,03413,28916,17856,94613,34916,72216,42121,89568,38714,4589,296

10,08213,66147,4979,814

12,958

9,08410,88541,68413,15110,41711,46812,81347,84917,74219,18017,27016,83071,02220,42619,61621,68723,30285,03223,25613,42315,29014,64166,61019,04012,224

440563

1,912622619708671

2,620871907923

1,1263,829

922813

1,004894

3,632815776

1,060702

3,353230445

6,24685,828

122,734-24,87836,13840,28827,97079,51868,279

-10,28046,49475,894

180,38724,69829,14926,186

-32,00048,034

-60,739-16,242-93,675

-188,897-359,553-56,283103,637

808,184893,229893,229862,052894,912931,754959,227959,227

1,020,3371,006,0031,047,5931,121,7091,121,7091,138,4081,163,8501,183,7671,149,4661,149,4661,079,1131,057,969

958,026767,447767,447701,709805,635

0.7310.5715.62-2.864.134.432.938.727.05

-1.104.547.14

18.592.132.482.18

-2.783.97

-5.21-1.45-8.91

-19.10-31.15-7.4314.71



16

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/0912/09200903/1006/1009/1012/10201003/1106/1109/1112/11201103/12

TotalPeriod

805,635918,651767,447960,615

1,002,235942,310

1,025,354960,615

1,081,7401,114,3111,128,3361,004,7351,081,7401,087,994

101,646

8,64714,00545,4259,054

12,00212,66519,93953,66119,13918,46317,31741,87596,79413,317

833,794(Sum)

12,07513,89557,23415,05315,88914,96622,89568,80424,84218,05134,85623,419

101,16722,145

989,172(Sum)

636562

1,872671719653812

2,855824683662724

2,893750

43,361(Sum)

117,08042,415

206,84948,290

-55,31985,99860,155

139,12439,09814,296

-105,40065,52613,52084,949

1,253,240(Sum)

918,651960,615960,615

1,002,235942,310

1,025,3541,081,7401,081,7401,114,3111,128,3361,004,7351,087,9941,087,9941,163,365

1,163,365

14.484.55

27.085.00

-5.599.075.79

14.383.561.22

-9.466.320.907.77

9.26(Annualized)


1


3/31/02Inception

DateInception

ReturnNTGI S&P 500 Index Fund Standard & Poor’s 500

NTGI Large Cap Growth Russell 1000 Growth

NTGI Small Cap Core Russell 2000

INTECH Standard & Poor’s 500 Standard & Poor’s 500 + 1%

Research Affiliates Standard & Poor’s 500 Standard & Poor’s 500 + 1%

Domestic Equity Composite Policy Index Russell 3000

Indices Russell 3000 Standard & Poor’s 500 Wilshire 5000 Wilshire 4500

12.5812.58

14.6714.69

12.4812.44

11.1212.5812.83

10.6012.5812.83

12.2712.8712.87

12.8712.5812.7614.21

25.8825.88

26.9626.85

29.9029.84

25.0025.8826.38

24.2925.8826.38

25.7826.5526.55

26.5525.8826.3228.90

8.418.43

10.2510.18

1.561.46

7.098.439.18

5.718.439.18

6.817.217.21

7.218.437.322.34

8.528.53

11.0911.02

-0.02-0.17

8.648.539.53

5.828.539.53

6.937.187.18

7.188.537.241.56

23.8423.41

25.5125.27

27.3026.90

23.2423.4124.41

25.3423.4124.41

24.1923.7424.25

24.2523.4124.1528.56

1.992.01

2.302.13

1.972.013.01

1.742.013.01

1.662.172.17

2.172.012.273.53

4.124.11

6.516.45

5.294.204.67

4.674.114.957.98

12/31/9012/31/90

3/31/09 3/31/09

12/31/9012/31/90

3/31/07 3/31/07 3/31/07

3/31/07 3/31/07 3/31/07

9/30/84 9/30/84 9/30/84

Since 9/30/84 9/30/84 9/30/84 9/30/84

9.299.30

25.5125.27

10.6610.56

1.972.013.01

1.742.013.01

10.8910.7610.65

10.6510.7310.5910.59

Tacoma Employees’ Retirement SystemPerformance ComparisonTotal Returns of Equity Portfolios

Periods Ended 3/31/12

2

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

χθf

ϑ*xsw

χ θf

ϑ*xsw

χθ

f

ϑ*xs

wχ

θ

f

ϑ*x

sw

χθf ϑ*xsw

χ θf

ϑ*xsw

χ f ϑ*xswχ

f*xsw

Med

75th

95th

25th

5th

Rat

e of

Ret

urn

χ NTGI S&P 500 Index Fund θ NTGI Large Cap Growth f NTGI Small Cap Core ϑ INTECH

Research Affiliates * Domestic Equity Composite x Russell 3000 s Standard & Poor’s 500 w Wilshire 5000 MedianNumber of Funds


12.58 (60)14.67 (31)12.48 (61)11.12 (76)10.60 (81)12.27 (64)12.87 (56)12.58 (60)12.76 (58)

13.291990

25.88 (65)26.96 (54)29.90 (27)25.00 (72)24.29 (77)25.78 (66)26.55 (59)25.88 (65)26.32 (61)

27.351990

8.41 (18)10.25 ( 8)1.56 (74)7.09 (28)5.71 (40)6.81 (30)7.21 (27)8.43 (18)7.32 (26)

4.711985

8.52 (23)11.09 (10)-0.02 (79)8.64 (22)5.82 (41)6.93 (33)7.18 (31)8.53 (23)7.24 (30)

4.601979

11.99 (57)14.63 (30)12.16 (55)12.36 (53)11.19 (66)12.08 (56)12.18 (55)12.03 (57)12.16 (55)

12.671949

23.84 (62)25.51 (49)27.30 (37)23.24 (67)25.34 (50)24.19 (58)24.25 (58)23.41 (66)24.15 (59)

25.431914

1.99 (71)

2.30 (68)1.97 (71)1.74 (74)1.66 (75)2.17 (69)2.01 (71)2.27 (68)

3.611768

4.12 (90)

6.51 (55)

5.29 (74)4.67 (84)4.11 (91)4.95 (80)

6.851239

Manager returns are Net of Fees

Tacoma Employees’ Retirement SystemEquity Fund Structural Characteristics

Domestic Equity CompositeQuarter Ended 3/31/12

3

Manager $(000) # %

Equity %Cash

%Other

SectorsENR MAT IND CDI CST HTH FIN INF TEL UTI

Turn-Over

NTGI S&P 500 Index FundNTGI Large Cap GrowthNTGI Small Cap CoreINTECHResearch AffiliatesDomestic Equity Composite

Standard & Poor’s 500Russell 1000 GrowthRussell 2000Russell 3000

109,50429,29728,89434,88143,652

246,229

NANANANA

501588

2,480389904

2,862

500589

1,9642,945

100100100100100100

100100100100

000000

0000

000000

0000

11106

131111

11106

10

355434

3554

1112167

1211

11121611

111414151313

11151412

11124

141111

111239

111013111211

11101311

154

228

1614

154

2216

213017171119

21301720

311353

3112

303864

3033

NANANANANANA

0.0 0.0 0.00.0

Tacoma Employees’ Retirement SystemEquity Fund Investment Characteristics

Domestic Equity CompositeQuarter Ended 3/31/12

4

ManagerGrowth

5 Yrs EPS 5 Yrs DivAverage $

Market Cap(Mil)Valuation

P/E P/B YLD ROERisk

Beta DBT/EQT R SquareNTGI S&P 500 Index FundNTGI Large Cap GrowthNTGI Small Cap CoreINTECHResearch AffiliatesDomestic Equity Composite


6.212.32.37.41.95.9

8.014.75.47.6

4.95.60.45.44.54.5

3.25.50.32.9

111,667119,380

1,37192,55480,01291,360

111,668119,432

1,37191,927

16.117.929.916.716.017.3

16.117.930.317.3

2.44.51.92.51.92.4

2.24.41.92.2

2.01.51.42.12.32.0

2.11.51.41.9

18.824.79.6

20.917.218.5

65.7100.112.457.7

1.001.001.250.921.011.02

1.001.001.251.05

0.470.410.380.530.530.47

0.680.600.520.67

0.980.960.860.980.970.98

0.980.960.870.98

P/B methodology changed 2Q03. See Glossary.

Tacoma Employees’ Retirement SystemEquity Fund Style Map

Quarter Ended 3/31/12Growth/Value vs Size

5

-150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150-150

-125

-100

-75

-50

-25

0

25

50

75

100

125

150

χθ

f

ϑ

*w

s u

z

x

Wils

hire

5000

Wilshire5000

Large CapValue

Small CapValue

Large Cap Growth

Small Cap Growth

Lar

geSI

ZE

Smal

l

Value VALUE/GROWTH Growth

Name Legend Growth-Value Size Name Legend Growth-Value SizeNTGI S&P 500 Index FundNTGI Large Cap GrowthNTGI Small Cap CoreINTECHResearch AffiliatesDomestic Equity CompositeWilshire 5000

χ

θfϑ

*w

-5.4866.084.04

-4.36-50.09-3.58-2.88

105.2998.11

-134.9690.3281.2670.0877.85


suzx

-5.4866.194.15

-0.90

105.2997.93

-134.8876.24

Tacoma Employees’ Retirement SystemRisk Return

5 Years Ending 3/31/12

6

Ann

ualiz

ed R

ate

of T

otal

Ret

urn

15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 27.0 28.0 29.0 30.0-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

χfϑ

*w

s

u

zx

Wils

hire

500

0R

isk

Wilshire 5000Return

Historical Standard Deviation of Total Return

Description

Legend

TotalReturn

StandardDeviation

SharpeRatio

Description

Legend

TotalReturn

StandardDeviation

SharpeRatio

NTGI S&P 500 Index FundNTGI Small Cap CoreINTECHResearch AffiliatesDomestic Equity CompositeWilshire 5000 Standard & Poor’s 500

χf

ϑ

*

w

s

2.042.392.311.901.822.272.01

22.1226.5321.3723.4122.7422.4721.83

0.040.040.050.030.030.050.04

Russell 1000 Growth Russell 2000 Russell 3000

u

z

x

5.102.132.17

22.1026.5122.60

0.180.030.04

Tacoma Employees’ Retirement SystemGrowth of One DollarNTGI S&P 500 Index Fund

Quarter Ended 3/31/12

1

Val

ue

3/91 3/92 3/93 3/94 3/95 3/96 3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/120.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

Val

ue

3/91 3/92 3/93 3/94 3/95 3/96 3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/120.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

LegendReturn

3 Years Inception 12/31/90$

ValueTotalStandard & Poor’s 500

23.8423.41

9.299.30

6.616.61

Tacoma Employees’ Retirement SystemGrowth of One Dollar

NTGI Large Cap GrowthQuarter Ended 3/31/12

1

Val

ue

3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

2.00

2.10

Val

ue

3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

2.00

2.10

LegendReturn


ValueTotalRussell 1000 Growth

25.5125.27

25.5125.27

1.981.97


NTGI Small Cap CoreQuarter Ended 3/31/12

1

Val

ue

3/91 3/92 3/93 3/94 3/95 3/96 3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/120.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Val

ue

3/91 3/92 3/93 3/94 3/95 3/96 3/97 3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/120.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

LegendReturn


ValueTotalRussell 2000

27.3026.90

10.6610.56

8.618.45


INTECHQuarter Ended 3/31/12

1

Val

ue

3/07 3/08 3/09 3/10 3/11 3/120.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

Val

ue

3/07 3/08 3/09 3/10 3/11 3/120.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

LegendReturn



23.2423.41

1.972.01

1.101.10

Tacoma Employees’ Retirement SystemEquity Fundamental Drift Style Map

3/31/07 - 3/31/12Growth/Value vs Size over Time

2

-150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150-150

-125

-100

-75

-50

-25

0

25

50

75

100

125

150

Wils

hire

5000

Wilshire5000

Large CapValue

Small CapValue

Large Cap Growth

Small Cap Growth

Lar

geSI

ZE

Smal

l


Date

INTECH

Growth-Value Size

Standard & Poor’s 500

Growth-Value Size 3/31/07 6/30/07 9/30/0712/31/07 3/31/08 6/30/08 9/30/0812/31/08 3/31/09 6/30/09 9/30/0912/31/09 3/31/10 6/30/10 9/30/1012/31/10 3/31/11 6/30/11 9/30/1112/31/11 3/31/12

-9.81-9.67-2.625.905.476.097.873.55

-18.86-19.74-20.45

4.937.821.75

-8.42-5.443.67

-1.51-17.13-8.89-4.36

85.5686.3997.1297.55

100.0299.7297.1396.0597.6494.3394.8694.4097.0395.9391.9689.4489.1589.9489.3288.9890.32

-9.31-9.80-8.89-4.08-5.69-0.02-5.84-7.35

-13.89-13.40-15.43-5.26-4.78-7.01-3.24-2.401.811.71

-8.75-8.75-5.48

106.38102.71106.36105.19106.09105.99105.25104.39105.26103.29101.54104.20104.95104.82105.06105.08105.81105.59105.43105.04105.29

Tacoma Employees’ Retirement SystemEquity Structural Characteristics


3

Quarter $(000)#

Stocks %

Equity %

Cash %

OtherSectors

ENR MAT IND CDI CST HTH FIN INF TEL UTLTurn-Over

03/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/0912/31/0903/31/1006/30/1009/30/1012/31/1003/31/1106/30/1109/30/1112/31/1103/31/12


55,40557,58258,53658,15652,20651,28547,12136,87715,83918,26520,95322,26523,48024,67227,47130,19732,16132,62427,95031,44334,881

NA

357370294292339381413385365432429417406380354364375373366380389

500

100100100100100100100100100100100100100100100100100100100100100

100

000000000000000000000

0

000000000000000000000

0

659

12131414141313121111989

1115141413

11

444433333233322466434

3

108

11131413131313118889

1213131110107

11

15171412109

101010111213121111131412101215

11

141211101212121215151210111314121112141414

11

1212131414141214141312111216141079

131511

11

21191211121314131012141313111411109988

15

101112131312131314151722252117171816151517

21

445554445454334455543

3

689766433464245666568

3


NAENRMATIND

- Energy- Materials- Industrials

CDICSTHTH

- Consumer Discretionary- Consumer Staples- Health Care

FININFTELUTL

- Financials- Information Technology- Telecommunication Services - Utilities

*Wilshire began using GICS sectors starting 1q03.

Tacoma Employees’ Retirement SystemEquity Investment Characteristics


4

QuarterGrowth



P/E P/B YLD ROERisk

Beta Debt/Eqt R Square03/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/0912/31/0903/31/1006/30/1009/30/1012/31/1003/31/1106/30/1109/30/1112/31/1103/31/12


11.913.114.815.816.516.016.215.312.910.59.39.16.86.55.25.55.95.25.56.37.4

8.0

4.95.05.25.26.36.46.36.37.06.76.25.74.64.24.14.64.54.85.15.25.4

3.2

75,79978,537

104,831104,04593,49086,60281,23373,23863,97068,83372,47177,47880,25870,49970,60373,41175,20375,00670,82978,02392,554

111,668

18.619.118.718.317.117.315.511.412.415.124.731.320.515.417.417.417.716.813.615.016.7

16.1

3.03.13.13.02.62.42.41.81.71.92.02.12.51.92.02.42.52.52.02.22.5

2.2

1.81.71.71.72.02.22.22.83.02.62.21.81.72.22.12.02.02.12.52.32.1

2.1

19.720.421.621.720.921.021.221.124.223.121.620.317.117.217.118.419.619.519.619.920.9

65.7

0.950.960.981.021.020.981.021.020.970.940.941.031.051.030.980.951.001.000.980.940.92

1.00

0.460.460.440.420.400.410.410.410.490.480.490.470.480.440.480.490.520.510.510.510.53

0.68

0.950.950.930.930.930.940.960.970.970.980.980.980.980.980.970.980.970.970.990.990.98

0.98


Tacoma Employees’ Retirement SystemEquity Fund Investment Characteristics - Historical Comparison

INTECH vs. Standard & Poor’s 500

5

P/E Ratio

0.0

7.0

14.0

21.0P/B Ratio

0.0

1.0

2.0

3.0

Dividend Yield

0.0

1.0

2.0

3.0Market Cap (Bil)

0.0

42.0

84.0

126.0

IndexPortfolio

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index15.4116.62

17.3917.12

17.4017.48

17.7317.08

16.8316.16

13.6013.53

14.9914.35

16.6716.14

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index1.911.85

2.022.03

2.382.17

2.482.09

2.532.10

2.011.81

2.222.02

2.462.22

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index2.182.19

2.102.03

2.001.87

1.981.89

2.081.98

2.502.38

2.262.22

2.122.05

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index70.5075.23

70.6080.96

73.4188.73

75.2093.09

75.0189.98

70.8386.96

78.0295.29

92.55111.67

Tacoma Employees’ Retirement SystemEquity Return Analysis


6

Quarter Index*Total

ReturnEquityReturn

Net Management Effect

TimingSector

WeightingStock

Selection Trading Total06/0709/0712/07

03/0806/0809/0812/08200803/0906/0909/0912/09200903/1006/1009/1012/10201003/1106/1109/1112/112011

6.282.05

-3.33

-9.46-2.72-8.37

-21.96-37.01-11.0115.9315.606.04

26.455.38

-11.4311.3010.7615.055.920.09

-13.8611.822.12

3.931.66

-0.65

-10.23-1.76-8.12

-21.74-36.59-11.4915.3114.726.26

24.415.46

-10.8511.359.92

15.086.501.44

-14.3312.504.13

3.931.74

-0.57

-10.15-1.68-8.04

-21.66-36.36-11.4915.4014.826.35

24.735.55

-10.9011.4410.0215.316.601.53

-14.2512.594.48

-0.00-0.09-0.08

-0.08-0.08-0.08-0.08-0.23-0.01-0.09-0.09-0.09-0.32-0.090.05

-0.10-0.09-0.23-0.09-0.09-0.07-0.10-0.36

-1.01-1.110.88

0.530.570.760.511.67

-0.60-0.16-0.330.14

-1.22-0.270.020.18

-0.85-0.98-0.220.430.680.201.24

-0.980.531.52

-1.771.050.08

-0.40-0.840.45

-0.41-0.350.210.040.390.200.820.421.980.561.07

-1.050.791.09

-0.360.270.37

0.54-0.58-0.510.19

-0.19-0.320.05

-0.10-0.03-0.550.050.31

-0.86-0.30-0.750.34

-0.07-0.02-0.220.04

-2.35-0.402.68

-0.780.960.250.210.42

-0.48-0.62-0.880.22

-2.040.080.590.05

-0.830.030.581.35

-0.460.682.01

Index* : Standard & Poor’s 500



7

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total03/12

FromInceptionAvg UpMarketsAvg DownMarkets

12.58

2.01

8.65

-10.27

11.12

1.97

8.35

-9.90

10.93

2.21

8.41

-9.84

0.18

-0.24

-0.06

-0.05

-1.70

-0.13

0.16

0.57

-0.10

-0.23

-1.46

-0.04

-0.30

0.37Index* : Standard & Poor’s 500

Tacoma Employees’ Retirement SystemEquity Sector Attribution Analysis


8

SectorPortfolio

Mkt Val % ReturnStandard & Poor’s 500

Mkt Val % ReturnSelection

Stock Sector TotalHealth CareMaterialsTelecom ServicesConsumer DiscretionaryConsumer StaplesIndustrialsEnergyUtilitiesInformation TechnologyFinancialsQuarter Total

15.203.163.97

11.5013.989.55

14.275.75

14.558.07

100.00

11.8617.643.46

15.276.00

10.044.31

-1.3920.1418.8611.04

11.853.502.96

10.6711.5310.6912.303.86

19.0013.64

100.00

9.0711.212.05

15.965.54

11.323.95

-1.5821.4522.0112.58

0.430.200.06

-0.080.06

-0.120.050.01

-0.19-0.250.16

-0.120.00

-0.110.03

-0.170.01

-0.17-0.27-0.39-0.52-1.70

0.310.21

-0.05-0.05-0.11-0.11-0.12-0.26-0.59-0.78-1.54

Stock Selection Return Attribution = [ Portfolio Market Value Sector Percent ] x [ Portfolio Sector Return - Index Sector Return]

Sector Selection Return Attribution = [ Portfolio Sector Percent - Index Sector Percent ] x [ Index Sector Return - Index Total Return ]

Trading Effect -0.10% = [ Actual Return 10.93% ] - [ Buy Hold Return 11.04% ]

Tacoma Employees’ Retirement SystemEquity Summary Statistics


9

10 Largest HoldingsName %Port $(000)

Exxon Mobil CorpApple IncIntl Business McHnAt&T IncChevron CorpJohnson & JohnsonPhilip Morris Intl IGeneral Elec CoCoca Cola CoMcDonalds Corp

4.13.42.62.12.11.41.21.21.11.1

1,4271,188

911733728490423402383381

10 Best PerformersName %Port %Return

Sears Hldgs CorpBank Amer CorpNetflix Com IncRegions Finl CorpPriceline Com IncApple IncLSI Logic CorpGap IncTeradata Corp DelPulte Homes Corp

0.00.10.00.00.53.40.10.00.50.2

108.4672.3466.0353.5053.4148.0245.8840.9240.4940.25

10 Worst PerformersName %Port %Return

Supervalu IncApollo Group IncGoodyear Tire & RubrElectronic ArtsCabot Oil & Gas CorpNrg Energy IncBaker Hughes IncDevry Inc DelEqt CorpNorfolk Southern Cor

0.10.20.20.40.50.20.30.10.50.2

-28.75-28.27-20.82-20.00-17.84-13.52-13.52-11.93-11.62-9.06

Portfolio Characteristic Distribution (%)Quartile Mkt. Cap P/E Yield

1st2nd3rd4th

25th Percentile50th Percentile75th Percentile

53.723.614.18.6

24,692,03812,678,1216,868,649

22.531.523.622.5

22.417.012.6

31.525.024.019.5

2.81.80.6



Research AffiliatesQuarter Ended 3/31/12

1

Val

ue

3/07 3/08 3/09 3/10 3/11 3/120.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

Val

ue

3/07 3/08 3/09 3/10 3/11 3/120.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

LegendReturn



25.3423.41

1.742.01

1.091.10

Tacoma Employees’ Retirement SystemEquity Fundamental Drift Style Map

3/31/07 - 3/31/12Growth/Value vs Size over Time

2

-150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150-150

-125

-100

-75

-50

-25

0

25

50

75

100

125

150

Wils

hire

5000

Wilshire5000

Large CapValue

Small CapValue

Large Cap Growth

Small Cap Growth

Lar

geSI

ZE

Smal

l


Date

Research Affiliates

Growth-Value Size


Growth-Value Size 3/31/07 6/30/07 9/30/0712/31/07 3/31/08 6/30/08 9/30/0812/31/08 3/31/09 6/30/09 9/30/0912/31/09 3/31/10 6/30/10 9/30/1012/31/10 3/31/11 6/30/11 9/30/1112/31/11 3/31/12

-46.62-46.09-46.26-41.86-38.90-36.75-52.01-50.01-56.29-48.66-50.29-45.68-46.84-47.33-41.96-40.11-32.55-33.78-43.96-55.04-50.09

94.2895.4294.3583.4775.8174.7371.6174.3078.5974.1680.3477.1169.7969.7771.2070.5280.3180.3687.2382.1581.26

-9.31-9.80-8.89-4.08-5.69-0.02-5.84-7.35

-13.89-13.40-15.43-5.26-4.78-7.01-3.24-2.401.811.71

-8.75-8.75-5.48

106.38102.71106.36105.19106.09105.99105.25104.39105.26103.29101.54104.20104.95104.82105.06105.08105.81105.59105.43105.04105.29



3

Quarter $(000)#

Stocks %

Equity %

Cash %

OtherSectors


03/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/0912/31/0903/31/1006/30/1009/30/1012/31/1003/31/1106/30/1109/30/1112/31/1103/31/12


73,20077,50777,64474,93267,95964,88060,55346,85118,36821,45826,02627,07029,25331,24334,72338,74841,25141,29335,12139,46843,652

NA

1,0741,078

948938997993

1,003994981

1,0111,000

990910904904909833906863910904

500

100100100100100100100100100100100100100100100100100100100100100

100

000000000000000000000

0

000000000000000000000

0

111112111113101213141111111111121312111211

11

444555433444333344233

3

1010111112121011101010111212121313138

1212

11

1111101113121413131212131312121312128

1213

11

111111121112101111118999

109

1111121211

11

1110101088

10111110999998

1011151212

11

232422202118231918192923232322201715221416

15

99

101011121010101010111111111111119

1111

21

334322455433334444955

3

666767567645666666376

3


NAENRMATIND


CDICSTHTH


FININFTELUTL





4

QuarterGrowth



P/E P/B YLD ROERisk

Beta Debt/Eqt R Square03/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/0912/31/0903/31/1006/30/1009/30/1012/31/1003/31/1106/30/1109/30/1112/31/1103/31/12


12.013.713.914.313.914.112.813.79.05.40.72.3

-0.6-0.5-0.2-0.21.11.73.81.91.9

8.0

5.65.85.95.66.36.36.36.35.95.64.75.03.73.13.23.94.14.13.84.44.5

3.2

94,73795,681

101,13689,32071,80070,50366,19063,76057,76854,44863,29463,49766,41459,04064,71771,30077,95273,05271,35175,08980,012

111,668

16.517.016.316.615.615.714.611.314.619.668.383.126.517.418.017.016.215.812.913.916.0

16.1

2.52.52.52.31.91.81.51.21.21.21.01.51.71.41.61.81.91.91.51.71.9

2.2

2.22.12.22.32.42.52.83.33.12.61.92.02.02.32.12.02.12.22.52.52.3

2.1

19.319.620.220.518.919.519.420.120.216.512.814.313.113.213.513.416.116.819.017.117.2

65.7

0.960.960.930.990.991.001.010.990.991.091.261.181.081.071.071.061.021.011.001.011.01

1.00

0.470.480.470.460.480.450.460.440.470.520.610.560.560.490.480.490.520.530.500.530.53

0.68

0.960.970.960.960.960.960.900.940.960.960.910.930.940.950.950.950.970.960.960.980.97

0.98


Tacoma Employees’ Retirement SystemEquity Fund Investment Characteristics - Historical Comparison

Research Affiliates vs. Standard & Poor’s 500

5

P/E Ratio

0.0

7.0

14.0

21.0P/B Ratio

0.0

1.0

2.0

3.0

Dividend Yield

0.0

1.0

2.0

3.0Market Cap (Bil)

0.0

42.0

84.0

126.0

IndexPortfolio

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index17.4416.62

17.9617.12

17.0217.48

16.2517.08

15.8416.16

12.8613.53

13.9214.35

16.0016.14

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index1.411.85

1.562.03

1.782.17

1.872.09

1.922.10

1.471.81

1.752.02

1.922.22

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index2.302.19

2.122.03

1.981.87

2.061.89

2.181.98

2.522.38

2.462.22

2.322.05

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index59.0475.23

64.7280.96

71.3088.73

77.9593.09

73.0589.98

71.3586.96

75.0995.29

80.01111.67



6

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total06/0709/0712/07

03/0806/0809/0812/08200803/0906/0909/0912/09200903/1006/1009/1012/10201003/1106/1109/1112/112011

6.282.05

-3.33

-9.46-2.72-8.37

-21.96-37.01-11.0115.9315.606.04

26.455.38

-11.4311.3010.7615.055.920.09

-13.8611.822.12

5.880.18

-3.49

-9.31-4.53-6.67

-22.63-37.48-13.4816.8221.294.01

27.518.07

-11.5211.1411.5918.596.460.10

-14.9512.381.86

5.880.23

-3.47

-9.29-4.52-6.65

-22.61-37.43-13.6316.8421.304.03

27.348.14

-11.2511.1611.6119.076.590.13

-14.9312.392.03

0.01-0.05-0.02

-0.01-0.01-0.01-0.01-0.040.15

-0.02-0.02-0.020.17

-0.07-0.27-0.02-0.02-0.48-0.13-0.02-0.01-0.02-0.17

-0.38-0.52-0.18

0.52-1.350.76

-1.04-0.87-1.891.350.53

-1.66-2.711.070.10

-0.230.111.180.120.230.10

-0.240.24

0.30-1.17-0.57

-0.16-0.452.210.021.12

-0.830.102.61

-0.670.961.970.030.100.853.200.78

-0.16-1.19-1.19-1.91

-0.32-0.130.60

-0.200.00

-1.260.37

-0.680.10

-0.532.560.312.64

-0.290.06

-0.01-0.11-0.36-0.24-0.040.032.011.59

-0.40-1.88-0.16

0.15-1.811.70

-0.67-0.47-2.470.905.69

-2.021.052.68

-0.08-0.160.833.540.540.01

-1.080.56

-0.26Index* : Standard & Poor’s 500



7

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total03/12


12.58

2.01

8.65

-10.27

10.60

1.74

9.04

-10.82

10.60

1.86

9.07

-10.80

-0.00

-0.12

-0.03

-0.03

-1.24

-0.91

-0.64

0.27

-0.10

0.49

-1.98

-0.27

0.40

-0.55Index* : Standard & Poor’s 500

Tacoma Employees’ Retirement SystemEquity Sector Attribution Analysis


8

SectorPortfolio

Mkt Val % ReturnStandard & Poor’s 500


Stock Sector TotalMaterialsEnergyIndustrialsConsumer DiscretionaryHealth CareFinancialsConsumer StaplesTelecom ServicesUtilitiesInformation TechnologyQuarter Total

3.3811.7312.0812.0012.0814.3711.875.116.66

10.73100.00

14.404.46

12.1815.748.65

20.954.591.18

-1.9516.8010.70

3.5012.3010.6910.6711.8513.6411.532.963.86

19.00100.00

11.213.95

11.3215.969.07

22.015.542.05

-1.5821.4512.58

0.110.060.10

-0.03-0.05-0.15-0.11-0.04-0.03-0.50-0.64

0.000.05

-0.020.04

-0.010.07

-0.02-0.23-0.40-0.73-1.24

0.110.110.090.02

-0.06-0.08-0.14-0.27-0.42-1.23-1.88



Trading Effect -0.10% = [ Actual Return 10.60% ] - [ Buy Hold Return 10.70% ]



9


Exxon Mobil CorpChevron CorpVerizon CommunicatioAt&T IncIntl Business McHnGeneral Elec CoPfizer IncConocophillipsJohnson & JohnsonJ P Morgan Chase & C

3.62.32.22.01.81.61.51.41.31.2

1,552988948872802715655616563527


Sears Hldgs CorpFrontline LtdBank Amer CorpU S G CorpTerex Corp NewFossil IncNetflix Com IncSeagate Technology PWhirlpool CorpSolutia Inc

0.10.00.90.00.00.00.00.20.10.0

108.4679.2572.3469.2966.5466.3166.0365.9163.0561.91


Radioshack CorpSupervalu IncApollo Group IncKindred Healthcare IBrightpoint IncUltra Pete CorpGoodyear Tire & RubrGenon Energy IncElectronic ArtsGardner Denver Machy

0.00.10.10.00.00.00.10.00.00.0

-34.73-28.75-28.27-26.59-25.19-23.62-20.82-20.31-20.00-18.16


1st2nd3rd4th


57.315.98.8

18.0

24,692,03812,678,1216,868,649

15.426.528.229.9

22.417.012.6

34.628.520.116.7

2.81.80.6



1


3/31/02Inception

DateInception

ReturnDFA International Core Equity MSCI World X-US (N)

NTGI Canada Index SL Fund MSCI Canada Index (N)

NTGI EAFE Index Fund MSCI EAFE Index (N)

NTGI EAFE Index Fund (Hedged) MSCI EAFE Hedged ND

NTGI Emerging Markets Index Fund MSCI EM Index (N)

RAFI Enhanced Int’l MSCI EAFE Index (N)

Indices MSCI Canada Index (N) MSCI EAFE Index (N) MSCI EAFE Hedged ND MSCI EM Index (N) MSCI ACWI X US (N) MSCI World X-US (N) Russell Glob Eq xUS-1/2hedge Dev xUS

12.8410.37

6.546.38

10.8910.86

9.9210.17

14.0214.08

9.6610.86

6.3810.8610.1714.0811.2310.3711.62

16.4314.25

14.6814.56

14.3514.94

18.9819.13

13.9314.56

11.7314.5614.9419.1315.3714.25

-7.18-7.22

-3.33-3.15

-7.96-7.74

-9.47-7.22-3.15-7.74-7.53-7.47

-5.55-5.77

-4.19-3.91

-9.13-8.80

-13.75-5.77-3.91-8.80-7.17-6.67

17.4317.13

12.7512.48

24.7225.07

21.9317.1312.4825.0719.1217.55

3.64-3.51-4.744.67

-1.56-2.95

11.635.70

14.137.286.12

9/30/11 9/30/11

12/31/1112/31/11

3/31/09 3/31/09

3/31/09 3/31/09

3/31/09 3/31/09

9/30/11 9/30/11

Since 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88

16.4314.25

6.546.38

17.4317.13

12.7512.48

24.7225.07

13.9314.56

9.134.47

4.73


2


3/31/02Inception

DateInception

ReturnInt’l Equity Composite Policy Index MSCI ACWI X US (N)

Int’l Equity Composite (Unhedged)

Indices MSCI Canada Index (N) MSCI EAFE Index (N) MSCI EAFE Hedged ND MSCI EM Index (N) MSCI ACWI X US (N) MSCI World X-US (N) Russell Glob Eq xUS-1/2hedge Dev xUS

11.2711.6211.23

11.60

6.3810.8610.1714.0811.2310.3711.62

14.7216.1015.37

15.30

11.7314.5614.9419.1315.3714.25

-7.92-5.40-7.53

-9.03

-9.47-7.22-3.15-7.74-7.53-7.47

-7.48-5.36-7.17

-7.71

-13.75-5.77-3.91-8.80-7.17-6.67

16.6117.0619.12

18.29

21.9317.1312.4825.0719.1217.55

-4.36-2.77-1.56

-3.28

3.64-3.51-4.744.67

-1.56-2.95

5.386.067.28

5.98

11.635.70

14.137.286.12

3/31/88 3/31/88

3/31/88

Since 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88 3/31/88

4.214.62

4.45

9.134.47

4.73


Total Returns of International Equity PortfoliosPeriods Ended 3/31/12

3

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

* h

x

m∞ x*

* h

x

m∞ x*

*h x

m

∞

x* * h

x

m∞

x*

*hx m

∞

x*

*h

x

m

∞

x*

*h

x

m∞

x*

* h

x

mx*

Med

75th

95th

25th

5th

Rat

e of

Ret

urn

* Int’l Equity Composite h Int’l Equity Comp (Unhed)x MSCI Canada Index (N) m MSCI EAFE Index (N) ∞ MSCI EAFE Hed

MSCI Emerging Mkts (N) x MSCI ACWI X US (N) * MSCI World X-US (N) MedianNumber of Funds


11.27 (62)11.60 (58)6.38 (92)

10.86 (68)10.17 (75)14.08 (29)11.23 (63)10.37 (73)

12.411375

14.72 (75)15.30 (70)11.73 (88)14.56 (76)14.94 (73)19.13 (38)15.37 (69)14.25 (79)

17.691363

-7.92 (76)-9.03 (83)-9.47 (85)-7.22 (71)-3.15 (41)-7.74 (75)-7.53 (73)-7.47 (73)

-4.331360

-7.48 (75)-7.71 (77)

-13.75 (95)-5.77 (64)-3.91 (52)-8.80 (81)-7.17 (73)-6.67 (70)

-3.431353

0.05 (92)1.47 (85)2.72 (77)2.00 (83)

-0.86 (93)3.94 (65)2.48 (80)2.06 (83)

5.751316

16.61 (84)18.29 (73)21.93 (45)17.13 (81)12.48 (95)25.07 (26)19.12 (67)17.55 (78)

21.211240

-4.36 (91)-3.28 (86)3.64 (24)

-3.51 (87)-4.74 (93)4.67 (19)

-1.56 (71)-2.95 (84)

0.671043

5.38 (88)5.98 (82)

11.63 (26)5.70 (85)

14.13 (16)7.28 (64)6.12 (80)

8.28618



Active EAFE International Equity PortfoliosPeriods Ended 3/31/12

4

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

θ βm∞

θ βm∞

θ

β

m

∞θ

βm

∞

θ

β

m

∞

θ

β

m

∞

m∞

m

Med75th

95th

25th

5th

Rat

e of

Ret

urn

DFA Int'l Core Equity NTGI Canada Idx SL Fund

θ NTGI EAFE Index Fund β NTGI EAFE Index Fd (Hed)

RAFI Enhanced Int’l m MSCI EAFE Index (N) ∞ MSCI EAFE Hedged MedianNumber of Funds


12.84 (41)6.54 (98)

10.89 (72)9.92 (85)9.66 (88)

10.86 (72)10.17 (83)

12.19

390

16.43 (49)

14.68 (74)14.35 (79)13.93 (84)14.56 (77)14.94 (71)

16.39

388

-7.18 (63)-3.33 (19)

-7.22 (65)-3.15 (17)

-6.21

386

-5.55 (64)-4.19 (45)

-5.77 (66)-3.91 (42)

-4.61

386

2.18 (82)-1.16 (95)

2.00 (83)

-0.86 (94)

4.79383

17.43 (76)12.75 (97)

17.13 (78)12.48 (97)

19.69

371

-3.51 (82)-4.74 (93)

-1.29

338

5.70 (91)

7.75230



Active Emerging Markets International Equity PortfoliosPeriods Ended 3/31/12

5

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

θ

θ

θ θ

θ

θ

Med

75th

95th

25th

5th

Rat

e of

Ret

urn

θ NTGI EMs Index Fund MSCI Emerging Mkts (N)

MedianNumber of Funds


14.02 (48)14.08 (47)

13.92

221

18.98 (50)19.13 (48)

19.03

219

-7.96 (56)-7.74 (54)

-6.78

218

-9.13 (64)-8.80 (59)

-7.06

215

3.43 (67)3.94 (61)

5.45201

24.72 (62)25.07 (60)

25.90

176

4.67 (59)

5.41132

14.13 (73)

15.50

79


Tacoma Employees’ Retirement SystemIntl Equity Fund Structural Characteristics

Int’l Equity CompositeQuarter Ended 3/31/12

6

Manager US$(000) #%IntlEquity %Cash %Other

SectorsENR MAT IND CDI CST HTH FIN INF TEL UTL

Turn-Over

NTGI Canada Index SL FundNTGI EAFE Index FundNTGI Emerging Markets Idx FdDFA International Core EquityRAFI Enhanced Int’lInt’l Equity Composite

MSCI Canada Index (N)MSCI EAFE Index (N)MSCI EM Index (N)MSCI ACWI X US (N)MSCI World X-US (N)

10,347103,80767,04458,89457,122

298,264

NANANANANA

103928854

5,1971,0216,226

102922819

1,8431,024

100100100100100100

100100100100100

000000

00000

000000

00000

269

159

1211

279

141110

201013119

11

2010131211

6137

231413

6137

1112

4118

121010

4118

1010

31187

119

3118

1010

191596

19178

342324221722

3423242424

15

14557

15

1474

358396

35865

144354

14444

NANANANANANA

NANANANANA

Tacoma Employees’ Retirement SystemIntl Equity Fund Investment Characteristics


7

ManagerGrowth


Market Cap($Mil)Valuation

P/E P/B YLD ROERisk

Beta DBT/EQTNTGI Canada Index SL FundNTGI EAFE Index FundNTGI Emerging Markets Index FundDFA International Core EquityRAFI Enhanced Int’lInt’l Equity Composite

MSCI Canada Index (N)MSCI EAFE Index (N)MSCI EM Index (N)MSCI ACWI X US (N)MSCI World X-US (N)

0.9-1.511.3-2.3-1.31.4

1.5-1.711.31.6

-1.4

4.42.6

12.00.52.64.3

4.32.7

11.74.92.8

27,03749,52436,14226,22946,08141,002

31,41749,48235,78344,74147,569

16.312.913.314.112.813.3

14.913.013.913.313.1

1.91.41.91.11.31.4

1.91.41.81.51.4

3.03.62.73.64.03.4

2.83.52.33.13.4

13.616.719.712.017.916.8

13.816.419.817.016.2

1.001.001.001.080.971.01

1.001.001.001.001.00

0.510.900.470.760.800.74

0.510.890.470.760.85

Tacoma Employees’ Retirement SystemFund Country Allocation


8

Cou

ntry

NT

GI

Can

ada

Inde

x SL

Fun

d

NT

GI

EA

FE I

ndex

Fun

d

NT

GI

Em

ergi

ng M

arke

ts I

ndex

Fun

d

DFA

Int

erna

tiona

l Cor

e E

quity

RA

FI E

nhan

ced

Int’

l

Int’

l Equ

ity C

ompo

site

MSC

I C

anad

a In

dex

(N)

MSC

I E

AFE

Ind

ex (

N)

MSC

I E

mer

ging

Mkt

s (N

)

MSC

I A

CW

I X

US

(N)

MSC

I W

orld

X-U

S (N

)

AustriaBelgiumChannel IslandsCyprusCzech RepublicDenmarkFinlandFranceGermanyGibraltarGreeceHungaryIrelandIsle of ManItalyLuxembourgMaltaNetherlandsNorwayPoland

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.31.00.10.00.01.10.99.08.60.00.10.00.30.12.20.30.02.70.80.0

0.00.00.00.00.30.00.00.00.00.00.00.30.00.00.1+00.00.00.01.4

0.41.00.1+00.00.91.46.45.8+00.30.06.6+02.01.8+02.51.00.0

0.31.4+00.00.00.71.4

11.39.50.00.10.00.30.02.80.10.02.41.00.0

0.20.80.1+00.10.70.86.66.0+00.10.11.3+01.70.5+01.90.60.3

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.31.00.10.00.01.10.99.38.60.00.10.00.30.12.30.00.02.51.00.0

0.00.00.00.00.30.00.00.00.00.00.00.30.00.00.0+00.00.00.01.4

0.20.70.10.00.10.80.66.35.90.00.10.10.20.11.60.20.01.70.70.3

0.20.90.10.00.01.00.88.37.70.00.10.00.30.12.10.00.02.20.90.0



9

Cou

ntry

NT

GI

Can

ada

Inde

x SL

Fun

d

NT

GI

EA

FE I

ndex

Fun

d

NT

GI

Em

ergi

ng M

arke

ts I

ndex

Fun

d

DFA

Int

erna

tiona

l Cor

e E

quity

RA

FI E

nhan

ced

Int’

l

Int’

l Equ

ity C

ompo

site

MSC

I C

anad

a In

dex

(N)

MSC

I E

AFE

Ind

ex (

N)

MSC

I E

mer

ging

Mkt

s (N

)

MSC

I A

CW

I X

US

(N)

MSC

I W

orld

X-U

S (N

)

PortugalScotlandSpainSwedenSwitzerlandTurkeyUnited KingdomTotal Europe BermudaBrazilCanadaCayman IslandsChileColombiaMexicoPeruUnited StatesTotal Americas

0.00.00.00.00.00.00.00.0

0.00.0

100.00.00.00.00.00.00.0

100.0

0.20.12.93.18.40.0

22.364.4

0.20.00.00.20.00.00.00.00.10.4

0.00.00.00.00.01.40.03.5

0.2

14.70.01.51.81.14.70.50.9

25.4

0.30.32.12.85.70.0

17.158.5

0.1+0

10.50.20.00.00.00.00.4

11.1

0.20.13.02.75.80.0

26.369.4

0.10.06.0+00.00.00.00.00.76.8

0.20.12.02.15.20.3

16.248.0

0.13.46.60.40.40.21.10.10.5

12.9

0.00.00.00.00.00.00.00.0

0.00.0

100.00.00.00.00.00.00.0

100.0

0.20.12.93.28.60.0

22.464.8

0.00.00.00.00.00.00.00.00.00.0

0.00.00.00.00.01.40.03.4

0.0

14.80.00.01.81.14.80.70.1

23.3

0.10.12.02.25.80.3

15.345.1

0.13.68.10.50.40.31.10.20.1

14.3

0.20.12.62.97.70.0

20.157.9

0.00.0

10.60.00.00.00.00.00.0

10.6



10

Cou

ntry

NT

GI

Can

ada

Inde

x SL

Fun

d

NT

GI

EA

FE I

ndex

Fun

d

NT

GI

Em

ergi

ng M

arke

ts I

ndex

Fun

d

DFA

Int

erna

tiona

l Cor

e E

quity

RA

FI E

nhan

ced

Int’

l

Int’

l Equ

ity C

ompo

site

MSC

I C

anad

a In

dex

(N)

MSC

I E

AFE

Ind

ex (

N)

MSC

I E

mer

ging

Mkt

s (N

)

MSC

I A

CW

I X

US

(N)

MSC

I W

orld

X-U

S (N

)

AustraliaHong KongIndiaIndonesiaJapanMalaysiaMongoliaNew ZealandPapua-New GuineaChinaPhilippinesSingaporeSouth KoreaTaiwanThailandTotal Pacific Basin Other Countries

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.0

8.42.70.00.0

21.60.00.00.10.0+00.01.70.00.00.0

34.5

0.7

0.02.56.42.70.03.30.00.00.0

13.00.80.0

15.010.92.0

56.6

14.5

6.32.10.00.0

19.4+0+00.2+0+00.01.60.00.00.0

29.6

0.7

4.11.20.00.0

17.00.00.00.1+00.00.00.80.00.00.0

23.3

0.5

4.92.21.50.6

14.50.8+00.1+03.00.21.03.52.50.5

35.3

3.8

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.0

8.42.90.00.0

21.60.00.00.10.00.00.01.80.00.00.0

34.8

0.6

0.00.06.52.70.03.40.00.00.0

17.20.80.0

15.111.02.1

58.7

14.7

5.71.91.60.7

14.70.80.00.10.04.10.21.23.62.60.5

37.7

4.0

7.52.60.00.0

19.30.00.00.10.00.00.01.60.00.00.0

31.2

0.6


DFA International Core EquityQuarter Ended 3/31/12

1

Val

ue

9/11 12/11 3/120.90

1.00

1.10

1.20

Val

ue

9/11 12/11 3/120.90

1.00

1.10

1.20

LegendReturn

2 Quarters Inception 9/30/11$

ValueTotalMSCI World X-US (N)

16.4314.25

16.4314.25

1.161.14

Tacoma Employees’ Retirement SystemInternational Equity Structural Characteristics


2

Quarter $(000)#Intl

Stocks%IntlEquity

%Cash

%Other


Turn-Over

09/30/1112/31/1103/31/12

MSCI World X-US (N)

35,90052,19258,894

11,687,764

5,1995,3215,197

1,024

100100100

100

000

0

000

0

4109

10

81211

11

491723

12

91312

10

577

10

255

8

152322

24

465

4

133

5

233

4

NANANA

NAENRMATIND


CDICSTHTH


FININFTELUTL



Tacoma Employees’ Retirement SystemIntl Equity Investment Characteristics


3

QuarterGrowth

5 Yrs EPS 5 Yrs DivAverage

Mkt Cap $(Mil)Valuation

P/E P/B YLD ROERisk

Beta Debt/Eqty09/30/1112/31/1103/31/12

MSCI World X-US (N)

-2.7-2.2-2.3

-1.4

0.91.00.5

2.8

14,34624,49026,229

47,569

12.412.614.1

13.1

1.01.01.1

1.4

4.83.93.6

3.4

11.912.212.0

16.2

1.071.081.08

1.00

0.720.700.76

0.85

P/B methodology changed 2Q03. See glossary.

Tacoma Employees’ Retirement SystemCountry Allocations


4

Aus

tria

Bel

gium

Cha

nnel

Isl

ands

Cyp

rus

Den

mar

k

Finl

and

Fran

ce

Ger

man

y

Gib

ralta

r

Gre

ece

Irel

and

Isle

of

Man

Ital

y

Lux

embo

urg

Mal

ta

Net

herl

ands

Nor

way

Port

ugal

Scot

land

Spai

n

Swed

en

Switz

erla

nd

Uni

ted

Kin

gdom

Tot

al E

urop

e

Bah

amas

Ber

mud

a

Bra

zil

Can

ada

Cay

man

Isl

ands

Uni

ted

Stat

es

Tot

al A

mer

icas

Aus

tral

ia

Hon

g K

ong

Indo

nesi

a

Japa

n

Mal

aysi

a

Mon

golia

New

Zea

land

Papu

a-N

ew G

uine

a

Chi

na

Sing

apor

e

Tha

iland

Tot

al P

acif

ic B

asin

Egy

pt

Isra

el

Kaz

akhs

tan

Sout

h A

fric

a

Zai

re

Tot

al O

ther

9/11

12/11

3/12

*Idx

0.4

0.5

0.4

0.2

0.7

1.1

1.0

0.9

0.1

0.2

0.1

0.1

+0

+0

+0

0.0

0.6

0.9

0.9

1.0

1.0

1.3

1.4

0.8

4.2

6.4

6.4

8.3

3.3

5.8

5.8

7.7

+0

+0

+0

0.0

0.2

0.3

0.3

0.1

5.8

0.5

6.6

0.3

+0

+0

+0

0.1

1.4

2.0

2.0

2.1

1.5

0.2

1.8

0.0

+0

+0

+0

0.0

1.4

2.7

2.5

2.2

0.6

1.0

1.0

0.9

0.3

0.3

0.3

0.2

0.2

0.3

0.3

0.1

1.3

2.6

2.1

2.6

1.8

3.0

2.8

2.9

3.6

6.2

5.7

7.7

39.7

19.0

17.1

20.1

68.0

54.4

58.5

57.9

+0

0.0

0.0

0.0

0.1

0.1

0.1

0.0

+0

0.0

+0

0.0

8.1

12.1

10.5

10.6

0.1

0.2

0.2

0.0

0.5

0.2

0.4

0.0

8.8

12.5

11.1

10.6

4.7

7.1

6.3

7.5

1.5

2.2

2.1

2.6

+0

+0

0.0

0.0

15.1

21.2

19.4

19.3

0.0

+0

+0

0.0

0.0

+0

+0

0.0

0.2

0.3

0.2

0.1

+0

+0

+0

0.0

+0

+0

+0

0.0

1.1

1.6

1.6

1.6

+0

0.0

0.0

0.0

22.7

32.3

29.6

31.2

+0

+0

+0

0.0

0.3

0.7

0.6

0.6

+0

+0

+0

0.0

+0

0.1

0.1

0.0

+0

+0

+0

0.0

0.4

0.8

0.7

0.6

*Idx - MSCI World X-US (N)

Tacoma Employees’ Retirement SystemIntl Equity Return Analysis


5

Quarter

IndexLocal

CurrencyIndex

CurrencyIndexUS $

TotalReturn

IntlEquityReturn


TimingCurrencyHedging

CountryCurrency

CountryMarket Sector Stock Trading Total

12/11

03/12


4.03

9.88

14.31

6.95

-0.52

0.49

-0.06

-0.01

3.51

10.37

14.25

6.94

3.18

12.84

16.43

8.01

3.18

12.84

16.43

8.01

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.07

-0.22

-0.15

2.40

0.21

2.61

-0.13

1.24

1.12

-4.94

0.76

-4.22

2.27

0.48

2.83

-0.33

2.47

2.18

1.07

Index : MSCI World X-US (N)

Tacoma Employees’ Retirement SystemIntl Equity Total Attribution Analysis


6

Country

PortfolioMarket

Value %Buy & Hold

Return

MSCI World X-US (N)Market Value %

$Return

VarianceCountry

WeightingSector

WeightingStock

Selection

TotalUnited KingdomFranceAustraliaSwitzerlandNetherlandsCanadaFinlandItalySpainSingaporeNorwayHong KongBelgiumCayman IslandsIrelandAustriaGreeceBermudaChinaSweden

19.056.367.056.242.71

12.051.331.982.621.560.972.181.090.160.550.460.300.120.043.00

11.96 17.14 13.04 13.03 15.13 7.71 19.22 11.86 -2.56 23.31 18.44 14.56 20.58 11.70 18.49 19.28 13.02 20.58 14.98 14.72

20.75 8.08 7.67 7.69 2.22 10.93 0.75 2.02 2.92 1.48 0.83 2.49 0.85 0.00 0.26 0.21 0.08 0.00 0.00 2.75

7.83 11.96 9.58 10.66 10.35 6.60 17.17 7.36 -3.00 19.27 13.25 12.66 19.03 28.29 9.74 16.44 13.53 16.75 30.05 14.86

0.04 -0.03 0.00 -0.00 -0.00 -0.04 0.04 0.00 0.04 0.01 0.00 -0.01 0.02 0.03 -0.00 0.02 0.01 0.01 0.01 0.01

0.44 0.18 0.05 0.15 0.08 -0.04 0.02 0.04 0.03 0.01 -0.01 0.05 0.02 0.00 0.03 0.01 0.00 0.00 0.00 -0.03

0.35 0.15 0.20 -0.01 0.05 0.18 0.00 0.03 -0.01 0.04 0.04 -0.01 -0.01 0.00 0.00 -0.00 0.00 0.00 0.00 0.02

0.83 0.30 0.25 0.14 0.13 0.09 0.07 0.07 0.05 0.05 0.04 0.04 0.04 0.03 0.03 0.02 0.01 0.01 0.01 0.01



7

Country

PortfolioMarket

Value %Buy & Hold

Return


$Return

VarianceCountry

WeightingSector

WeightingStock

Selection

TotalIsraelLuxembourgDenmarkNew ZealandIsle of ManKazakhstanChannel IslandsUnited StatesPortugalScotlandJapanGermanyPapua-New GuineaGibraltarMongoliaMaltaSouth AfricaEgyptCyprusMalaysia

0.670.220.890.280.020.040.170.190.350.30

21.175.770.000.010.000.010.060.000.020.00

10.08 20.07 19.26 11.47 18.36 0.70 13.17 4.44 1.18 5.33 10.87 21.74 13.47 -2.83 1.88 20.91 33.20 26.24 2.29 17.65

0.58 0.00 0.94 0.10 0.07 0.00 0.05 0.00 0.20 0.09 19.23 6.99 0.00

-- --

0.00 0.00 0.00 0.00 0.00

8.68 12.48 18.23 17.67 16.44 0.70 2.13 4.06 1.64 -4.32 11.35 20.99

-- -- -- -- -- -- -- --

-0.00 0.00 -0.00 0.01 -0.00 -0.00 -0.01 -0.01 -0.01 -0.03 0.02 -0.13

-- -- -- -- -- -- -- --

0.01 0.00 0.01 -0.02 0.00 0.00 0.00 0.00 -0.01 0.00 0.24 -0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 -0.34 0.06 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.01 0.00 0.00 -0.00 -0.00 -0.00 -0.01 -0.01 -0.02 -0.02 -0.08 -0.09

-- -- -- -- -- -- -- --



8

Country

PortfolioMarket

Value %Buy & Hold

Return


$Return

VarianceCountry

WeightingSector

WeightingStock

Selection

TotalIndonesiaZaire

Quarter Total

0.000.01

100.00

46.53 -8.57

12.61

0.00 --

100.00

-- --

10.37

-- --

-0.02

0.00 0.00

1.24

0.00 0.00

0.76

-- --

1.99

Tacoma Employees’ Retirement SystemIntl Equity Country Attribution Analysis


9

Country

PortfolioMarket

Value %Buy & Hold

Return


LocalReturn

US $Return

VarianceCurrency

WeightingMarket

WeightingCountry

WeightingUnited KingdomSpainFinlandCayman IslandsBelgiumJapanAustriaNew ZealandSwedenBermudaChinaSingaporeGreeceAustraliaLuxembourgNorwayItalyNetherlandsIsraelIreland

19.052.621.330.161.09

21.170.460.283.000.120.041.560.307.050.220.971.982.710.670.55

11.96 -2.56 19.22 11.70 20.58 10.87 19.28 11.47 14.72 20.58 14.98 23.31 13.02 13.04 20.07 18.44 11.86 15.13 10.08 18.49

20.75 2.92 0.75 0.00 0.85 19.23 0.21 0.10 2.75 0.00 0.00 1.48 0.08 7.67 0.00 0.83 2.02 2.22 0.58 0.26

4.88 -5.44 14.22 28.25 16.03 19.10 13.50 12.02 11.18 9.73 30.01 15.68 10.67 8.45 16.48 8.24 4.65 7.61 5.39 6.97

7.83 -3.00 17.17 28.29 19.03 11.35 16.44 17.67 14.86 16.75 30.05 19.27 13.53 9.58 12.48 13.25 7.36 10.35 8.68 9.74

-0.04 -0.01 0.01 -0.00 0.01 -0.16 0.01 0.01 0.01 0.01 -0.00 0.00 0.01 -0.00 -0.01 0.01 -0.00 0.01 0.00 0.01

0.09 0.05 0.03 0.03 0.01 0.18 0.01 0.00 0.00 -0.00 0.01 0.00 0.00 0.01 0.01 -0.00 0.00 -0.01 -0.00 -0.01

0.04 0.04 0.04 0.03 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.00 -0.00 -0.00 -0.00

Currency Weighting = [ Index US $ Ret - Index Local Ret + Index Total Local Ret - Index Total US $ Ret ] x [ Portfolio Country Pct - Index Country Pct ] / 100

Market Weighting = [ Index Local Ret - Index Total Local Ret ] x [ Portfolio Country Pct - Index Country Pct ] / 100

Country Weighting = Currency Weighting + Market Weighting



10

Country

PortfolioMarket

Value %Buy & Hold

Return


LocalReturn

US $Return

VarianceCurrency

WeightingMarket

WeightingCountry

WeightingIsle of ManDenmarkSwitzerlandKazakhstanHong KongChannel IslandsUnited StatesPortugalFranceScotlandCanadaGermanyPapua-New GuineaEgyptMaltaMalaysiaSouth AfricaCyprusZaireIndonesia

0.020.896.240.042.180.170.190.356.360.30

12.055.770.000.000.010.000.060.020.010.00

18.36 19.26 13.03 0.70 14.56 13.17 4.44 1.18 17.14 5.33 7.71 21.74 13.47 26.24 20.91 17.65 33.20 2.29 -8.57 46.53

0.07 0.94 7.69 0.00 2.49 0.05 0.00 0.20 8.08 0.09 10.93 6.99 0.00 0.00 0.00 0.00 0.00 0.00

-- 0.00

12.91 15.36 6.96 -2.05 12.62 -0.66 0.58 -0.92 9.14 -6.94 4.64 17.94

-- -- -- -- -- -- -- --

16.44 18.23 10.66 0.70 12.66 2.13 4.06 1.64 11.96 -4.32 6.60 20.99

-- -- -- -- -- -- -- --

-0.00 -0.00 -0.05 0.00 0.00 0.00 0.01 0.00 -0.04 0.00 0.02 -0.03

-- -- -- -- -- -- -- --

-0.00 -0.00 0.04 -0.01 -0.01 -0.01 -0.02 -0.02 0.01 -0.03 -0.06 -0.10

-- -- -- -- -- -- -- --

-0.00 -0.00 -0.00 -0.00 -0.01 -0.01 -0.01 -0.01 -0.03 -0.03 -0.04 -0.13

-- -- -- -- -- -- -- --






11

Country

PortfolioMarket

Value %Buy & Hold

Return


LocalReturn

US $Return

VarianceCurrency

WeightingMarket

WeightingCountry

WeightingGibraltarMongolia

Quarter Total

0.010.00

100.00

-2.83 1.88

12.61

-- --

100.00

-- --

9.88

-- --

10.37

-- --

-0.22

-- --

0.21

-- --

-0.02






12


Iii Fund Ptg Usd0.01Royal Dutch Shell PlHsbc Hldgs PlcBp Amoco P L CVodafone Group Plc NBnp Pariba Parvest BSwiss & Gl M/Stk SwiNestle SaNovartis A GToyota Motor Co

6.11.41.11.00.90.80.80.60.60.5

3,161751565504473431407305288249


Southern Cross HealtNicox SaVision Eye InstituteBlackthorn ResourcesMcEwen Mng Minera AnTessenderlo Chemie IPremier FoodsBuru Energy LimitedSeabird ExplorationPolaris Minerals Cor

0.00.00.00.00.00.00.00.00.00.0

1,185.11227.46203.15194.23192.99190.66187.55165.61154.74149.90


Mascotte HldgsKaro Bio AbCardiome Pharma CorpKathimerini SaSolar Millennium AgQ-Cells SeNeway Group HoldingsCatalyst Paper CorpOrckit CommunicationCequence Energy Limi

0.00.00.00.00.00.00.00.00.00.0

-85.21-80.45-72.63-66.66-65.12-58.02-57.13-56.34-55.76-54.41


1st2nd3rd4th


37.712.512.437.4

15,065,4227,155,8913,885,121

20.521.034.424.1

20.814.59.4

30.328.120.521.1

4.22.71.8

MSCI World X-US (N)

Tacoma Employees’ Retirement SystemGrowth of One DollarNTGI Canada Index SL Fund


1

Val

ue

12/11 3/120.90

1.00

1.10

Val

ue

12/11 3/120.90

1.00

1.10

LegendReturn

1 Quarter Inception 12/31/11$

ValueTotalMSCI Canada Index (N)

6.546.38

6.546.38

1.071.06


NTGI EAFE Index FundQuarter Ended 3/31/12

1

Val

ue

3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

Val

ue

3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

LegendReturn


ValueTotalMSCI EAFE Index (N)

17.4317.13

17.4317.13

1.621.61


NTGI EAFE Index Fund (Hedged)Quarter Ended 3/31/12

1

Val

ue

3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

Val

ue

3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

LegendReturn


ValueTotalMSCI EAFE Hedged ND

12.7512.48

12.7512.48

1.431.42


NTGI Emerging Markets Index FundQuarter Ended 3/31/12

1

Val

ue

3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

2.00

2.10

2.20

Val

ue

3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

2.00

2.10

2.20

LegendReturn


ValueTotalMSCI EM Index (N)

24.7225.07

24.7225.07

1.941.96


RAFI Enhanced Int’lQuarter Ended 3/31/12

1

Val

ue

9/11 12/11 3/120.90

1.00

1.10

1.20

Val

ue

9/11 12/11 3/120.90

1.00

1.10

1.20

LegendReturn


ValueTotalMSCI EAFE Index (N)

13.9314.56

13.9314.56

1.141.15

Tacoma Employees’ Retirement SystemInternational Equity Structural Characteristics


2

Quarter $(000)#Intl

Stocks%IntlEquity

%Cash

%Other


Turn-Over

12/31/1103/31/12

MSCI EAFE Index (N)

52,09257,122

10,449,977

1,0211,021

922

100100

100

00

0

00

0

1212

9

79

10

2314

13

810

11

1011

11

89

9

1417

23

45

5

99

5

55

4

NANA

NAENRMATIND


CDICSTHTH


FININFTELUTL


Tacoma Employees’ Retirement SystemIntl Equity Investment Characteristics


3

QuarterGrowth

5 Yrs EPS 5 Yrs DivAverage

Mkt Cap $(Mil)Valuation

P/E P/B YLD ROERisk

Beta Debt/Eqty12/31/1103/31/12

MSCI EAFE Index (N)

-1.5-1.3

-1.7

3.32.6

2.7

45,06246,081

49,482

12.012.8

13.0

1.31.3

1.4

4.44.0

3.5

16.817.9

16.4

0.960.97

1.00

0.780.80

0.89

Tacoma Employees’ Retirement SystemCountry Allocations


4

Aus

tria

Bel

gium

Cha

nnel

Isl

ands

Den

mar

k

Finl

and

Fran

ce

Ger

man

y

Gre

ece

Irel

and

Isle

of

Man

Ital

y

Lux

embo

urg

Net

herl

ands

Nor

way

Port

ugal

Scot

land

Spai

n

Swed

en

Switz

erla

nd

Uni

ted

Kin

gdom

Tot

al E

urop

e

Ber

mud

a

Can

ada

Cay

man

Isl

ands

Uni

ted

Stat

es

Tot

al A

mer

icas

Aus

tral

ia

Hon

g K

ong

Japa

n

New

Zea

land

Papu

a-N

ew G

uine

a

Chi

na

Sing

apor

e

Tot

al P

acif

ic B

asin

Isra

el

Kaz

akhs

tan

Sout

h A

fric

a

Tot

al O

ther

12/113/12

*Idx

0.30.3

0.3

1.11.4

1.0

0.1+0

0.1

0.60.7

1.1

1.21.4

0.9

10.111.3

9.3

7.99.5

8.6

0.10.1

0.1

7.30.3

0.3

0.00.0

0.1

2.52.8

2.3

4.10.1

0.0

2.12.4

2.5

0.81.0

1.0

0.20.2

0.2

0.10.1

0.1

3.13.0

2.9

2.32.7

3.2

5.25.8

8.6

23.126.3

22.4

72.269.4

64.8

0.10.1

0.0

5.96.0

0.0

+0+0

0.0

0.40.7

0.0

6.46.8

0.0

3.84.1

8.4

1.11.2

2.9

15.417.0

21.6

0.10.1

0.1

0.0+0

0.0

0.00.0

0.0

0.70.8

1.8

21.023.3

34.8

0.40.5

0.6

+0+0

0.0

+00.1

0.0

0.50.5

0.6

*Idx - MSCI EAFE Index (N)

Tacoma Employees’ Retirement SystemIntl Equity Return Analysis


5

Quarter

IndexLocal

CurrencyIndex

CurrencyIndexUS $

TotalReturn

IntlEquityReturn


TimingCurrencyHedging

CountryCurrency

CountryMarket Sector Stock Trading Total

12/11

03/12

FromInceptionFrom 12/11To PresentAvg UpMarketsAvg DownMarkets

4.17

10.52

15.13

10.52

7.35

-0.84

0.34

-0.58

0.34

-0.25

3.33

10.86

14.56

10.86

7.10

3.90

9.66

13.93

9.66

6.78

4.36

9.74

14.52

9.74

7.05

-0.46

-0.08

-0.59

-0.08

-0.27

NA

0.00

0.00

NA

0.32

0.32

NA

-0.42

-0.42

NA

0.38

0.38

NA

-1.69

-1.69

NA

0.28

0.28

0.56

-1.21

-0.63

-1.21

-0.32

Index : MSCI EAFE Index (N)



6

Country

PortfolioMarket

Value %Buy & Hold

Return

MSCI EAFE Index (N)Market Value %

$Return

VarianceCountry

WeightingSector

WeightingStock

Selection

TotalAustraliaLuxembourgBelgiumNetherlandsItalyFinlandCayman IslandsBermudaNew ZealandIsraelPortugalGreeceIsle of ManChinaSwitzerlandKazakhstanAustriaChannel IslandsHong KongNorway

3.774.061.112.092.531.210.040.100.090.420.170.120.000.005.220.030.280.061.090.84

10.22 13.49 22.42 12.35 8.83 16.29 41.23 2.98 25.27 8.14 -0.54 10.78

-- --

10.49 0.70 14.57 10.33 15.06 12.73

8.61 0.00 0.95 2.49 2.27 0.84 0.00 0.00 0.12 0.65 0.22 0.08 0.00 0.00 8.63 0.00 0.24 0.00 2.80 0.93

9.58 12.48 19.03 10.35 7.36 17.17 28.29 16.75 17.67 8.68 1.64 13.53 16.44 30.05 10.66 0.70 16.44 2.13 12.66 13.25

0.06 0.07 0.01 0.00 -0.01 0.02 0.01 0.01 -0.00 0.01 0.00 0.00 0.00 0.00 0.01 -0.00 0.00 -0.01 -0.03 -0.00

-0.01 0.00 0.05 0.00 0.05 -0.02 0.00 0.00 0.01 -0.01 -0.00 -0.00 0.00 0.00 -0.05 0.00 -0.01 0.00 0.01 -0.01

0.03 0.00 -0.00 0.04 -0.02 0.01 0.00 0.00 -0.00 0.00 0.00 0.00 0.00 0.00 0.04 0.00 -0.00 0.00 0.02 0.01

0.09 0.07 0.05 0.04 0.02 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 -0.00 -0.00 -0.00 -0.01 -0.01 -0.01



7

Country

PortfolioMarket

Value %Buy & Hold

Return


$Return

VarianceCountry

WeightingSector

WeightingStock

Selection

TotalScotlandUnited StatesSpainDenmarkUnited KingdomSwedenSingaporeGermanyFranceJapanIrelandSouth AfricaCanada

Quarter Total

0.090.353.080.59

23.102.310.687.89

10.1515.377.290.045.86

100.00

3.84 17.91 -4.78 17.45 7.53 12.72 20.69 18.90 9.27 8.98 3.52 33.20 8.01

9.56

0.00 0.00 3.28 1.05 23.29 3.09 1.66 7.85 9.07 21.60 0.29 0.00 0.00

100.00

-4.32 4.06 -3.00 18.23 7.83 14.86 19.27 20.99 11.96 11.35 9.74

-- --

10.86

-0.01 -0.02 0.03 -0.03 0.01 -0.03 -0.08 0.00 0.01 -0.03 -0.08

-- --

-0.10

0.00 0.00 -0.05 -0.00 -0.18 -0.01 0.01 -0.10 -0.26 -0.21 1.20 0.00 0.00

0.38

0.00 0.00 -0.01 -0.00 0.11 -0.04 -0.01 -0.06 -0.01 -0.15 -1.65 0.00 0.00

-1.69

-0.01 -0.02 -0.03 -0.04 -0.06 -0.08 -0.09 -0.16 -0.26 -0.39 -0.53

-- --

-1.40



8

Country

PortfolioMarket

Value %Buy & Hold

Return


LocalReturn

US $Return

VarianceCurrency

WeightingMarket

WeightingCountry

WeightingLuxembourgAustraliaSpainFinlandBelgiumFranceSwitzerlandCayman IslandsBermudaUnited KingdomIsraelPortugalGermanyAustriaNetherlandsGreeceChinaIsle of ManNorwayNew Zealand

4.063.773.081.211.11

10.155.220.040.10

23.100.420.177.890.282.090.120.000.000.840.09

13.49 10.22 -4.78 16.29 22.42 9.27 10.49 41.23 2.98 7.53 8.14 -0.54 18.90 14.57 12.35 10.78

-- --

12.73 25.27

0.00 8.61 3.28 0.84 0.95 9.07 8.63 0.00 0.00 23.29 0.65 0.22 7.85 0.24 2.49 0.08 0.00 0.00 0.93 0.12

16.48 8.45 -5.44 14.22 16.03 9.14 6.96 28.25 9.73 4.88 5.39 -0.92 17.94 13.50 7.61 10.67 30.01 12.91 8.24 12.02

12.48 9.58 -3.00 17.17 19.03 11.96 10.66 28.29 16.75 7.83 8.68 1.64 20.99 16.44 10.35 13.53 30.05 16.44 13.25 17.67

-0.18 -0.04 -0.00 0.01 0.00 0.03 -0.11 -0.00 0.01 -0.01 -0.01 -0.00 0.00 0.00 -0.01 0.00 -0.00 0.00 -0.00 -0.00

0.24 0.10 0.03 0.01 0.01 -0.01 0.12 0.01 -0.00 0.01 0.01 0.01 0.00 0.00 0.01 0.00 0.00 0.00 0.00 -0.00

0.07 0.06 0.03 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.00 -0.00






9

Country

PortfolioMarket

Value %Buy & Hold

Return


LocalReturn

US $Return

VarianceCurrency

WeightingMarket

WeightingCountry

WeightingKazakhstanChannel IslandsItalyScotlandUnited StatesJapanHong KongSwedenDenmarkIrelandSingaporeCanadaSouth Africa

Quarter Total

0.030.062.530.090.35

15.371.092.310.597.290.685.860.04

100.00

0.70 10.33 8.83 3.84 17.91 8.98 15.06 12.72 17.45 3.52 20.69 8.01 33.20

9.56

0.00 0.00 2.27 0.00 0.00 21.60 2.80 3.09 1.05 0.29 1.66 0.00 0.00

100.00

-2.05 -0.66 4.65 -6.94 0.58 19.10 12.62 11.18 15.36 6.97 15.68

-- --

10.52

0.70 2.13 7.36 -4.32 4.06 11.35 12.66 14.86 18.23 9.74 19.27

-- --

10.86

0.00 0.00 0.01 0.00 0.01 0.50 0.01 -0.03 -0.01 0.17 -0.03

-- --

0.32

-0.00 -0.01 -0.02 -0.02 -0.03 -0.53 -0.04 -0.01 -0.02 -0.25 -0.05

-- --

-0.42

-0.00 -0.01 -0.01 -0.01 -0.02 -0.03 -0.03 -0.03 -0.03 -0.08 -0.08

-- --

-0.10






10


BpRoyal Dutch ShellTotalGlaxosmithklineNestle SaBhp Billiton PlcRoche Holdings AgEniSanofiVodafone Group

2.72.62.01.51.31.31.21.21.11.1

1,5591,4651,132

881771749673662620612


Premier FoodsEnterprise InnsCable & Wireless WorKbc Groep NvPostnl N.V.Alpha Bank A EOnesteelFondiaria-SaiKvaerner AsaLogica Plc

0.00.00.00.00.00.00.00.00.00.0

187.55116.63115.1198.3093.0886.4884.1476.7173.8465.96


Petroplus Holdings AGame GroupYellow Media Inc NewFirstgroupUnicredit SpaCellcom Israel LtdBanco Popular EspanoSnc Group IncTrinity MirrorCaixabank Sa

0.00.00.00.10.00.00.00.00.00.0

-87.51-67.24-47.68-25.91-21.98-21.57-20.58-20.36-19.68-19.52


1st2nd3rd4th


66.515.88.19.5

15,392,7647,003,9534,047,893

15.423.133.328.2

20.814.79.7

38.931.316.113.7

4.22.71.8

MSCI EAFE Index (N)


1


3/31/02Inception

DateInception

ReturnCore Fixed Income Composite Barclays Aggregate

High Yield Composite Policy Index

TIPS Composite Barclays U.S. TIPS

Total Fixed Income Composite Policy Index

Indices Barclays Aggregate Citigroup LPF Barclays U.S. TIPS 91-Day Treasury Bill Citigroup Non-US WGBI Citigroup HY Cash Pay

2.520.30

4.244.43

0.840.86

2.861.48

0.30-0.900.860.01

-0.225.10

3.851.43

8.6010.57

3.493.57

5.094.09

1.430.913.570.01

-0.6911.84

5.665.30

4.825.01

8.588.25

5.825.72

5.3010.438.250.030.255.78

7.487.72

5.556.19

7.467.92

7.7213.6712.200.063.936.76

12.136.84

16.5723.55

13.8212.69

6.849.268.740.136.93

22.72

8.076.25

6.777.73

7.877.22

6.258.167.601.236.957.77

7.215.80

7.216.78

5.807.417.511.918.548.82

9/30/81 9/30/81

9/30/05 9/30/05

6/30/11 6/30/11

12/31/93

Since 12/31/9312/31/9312/31/9312/31/9312/31/9312/31/93

9.929.19

7.158.27

8.588.25

6.83

6.207.22

3.346.117.60


1


3/31/02Inception

DateInception

ReturnBlackRock US Debt Index Fund Barclays Aggregate

Metropolitan West Barclays Aggregate Barclays Aggregate + 0.75%

Core Fixed Income Composite Barclays Aggregate

Indices Barclays Aggregate Citigroup LPF 91-Day Treasury Bill Citigroup Non-US WGBI Citigroup HY Cash Pay

0.300.30

2.850.300.49

2.520.30

0.30-0.900.01

-0.225.10

1.411.43

4.231.431.80

3.851.43

1.430.910.01

-0.6911.84

5.305.30

5.705.305.87

5.665.30

5.3010.430.030.255.78

7.707.72

7.437.728.47

7.487.72

7.7213.670.063.936.76

12.256.847.59

12.136.84

6.849.260.136.93

22.72

8.146.257.00

8.076.25

6.258.161.236.957.77

7.255.806.55

7.215.80

5.807.411.918.548.82

6/30/10 6/30/10

3/31/02 3/31/02 3/31/02

9/30/81 9/30/81

Since 9/30/81 9/30/81 9/30/81 9/30/81 9/30/81

5.285.27

7.255.806.55

9.929.19

9.1910.545.169.17


Total Returns of Fixed Income PortfoliosPeriods Ended 3/31/12

2

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

B

W F

*a

B

W F

*a

B W F

*

a

B W F

*

a W F

*

a

W F

*

a

W F *

aW F *

a

Med75th95th

25th

5th

Rat

e of

Ret

urn

B BR US Debt Index Fund W Metropolitan West F Core Fixed Income Comp * Citigroup LPF a Barclays Aggregate MedianNumber of Funds


0.30 (84)2.85 (21)2.52 (25)

-0.90 (95)0.30 (84)

1.181165

1.41 (78)4.23 (28)3.85 (31)0.91 (88)1.43 (77)

2.691165

5.30 (47)5.70 (39)5.66 (40)

10.43 ( 9)5.30 (47)

5.151158

7.70 (42)7.43 (46)7.48 (45)

13.67 ( 9)7.72 (41)

7.191154

7.96 (34)7.78 (36)

10.44 (16)6.41 (60)

6.941125

12.25 (30)12.13 (30)9.26 (44)6.84 (68)

8.771081

8.14 (16)8.07 (16)8.16 (15)6.25 (57)

6.57998

7.25 (24)7.21 (25)7.41 (22)5.80 (62)

6.12781


Tacoma Employees’ Retirement SystemTreasury Yield Curve


3

Yie

ld

0.0 5.0 10.0 15.0 20.0 25.0 30.0-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

B

W

F

*

a

TreasuryYrs to Mat Yield

1.00 5.00 10.00 15.00 20.00 25.00

0.23 0.81 2.19 2.98 3.38 3.52

Description Legend Yrs to Mat YieldBlackRock US Debt Index FundMetropolitan WestCore Fixed Income CompositeCitigroup LPFBarclays Aggregate

BWF*a

6.21 6.65 6.46 12.71 7.10

1.82 4.17 3.80 2.84 2.22

Tacoma Employees’ Retirement SystemFixed Income Fund Structural Characteristics

Core Fixed Income CompositeQuarter Ended 3/31/12

4

Manager $(MIL)#

BondEffective Maturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTLBlackRock US Debt Index FundMetropolitan WestCore Fixed Income Composite

Barclays Aggregate

29.3164.5193.8

16,113,100.0

6,056175

6,227

7,929

1.70.70.9

0.0

86.284.785.6

87.6

3.27.66.7

3.3

8.97.06.9

9.2

AAAA A

AA

73530

7

501

3

406

11

43

1166

11

212

0

334947

34

011

0

222

2

Tacoma Employees’ Retirement SystemFund Fixed Income Characteristics


5

B BlackRock US Debt Index Fund W Metropolitan West F Core Fixed Income Composite

A Citigroup LPFC Barclays Aggregate

Effective Duration

B W F A C 0.0

3.0

6.0

9.0

4.35��3.76��3.78��

7.98��

5.00��

Years to Effective Maturity

B W F A C 0.0

5.0

10.0

15.0

6.21��6.65��6.46��

12.71��

7.10��

Yield to Effective Maturity

B W F A C 0.0

2.0

4.0

6.0

1.82��

4.17��3.80��

2.84��

2.22��

Current Yield

B W F A C 0.0

2.0

4.0

6.0

3.65��

4.53��4.38�� 4.22��

3.60��


BlackRock US Debt Index FundQuarter Ended 3/31/12

1

Val

ue

6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

Val

ue

6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/120.90

1.00

1.10

LegendReturn

1 Year & 3 Quarters Inception 6/30/10$

ValueTotalBarclays Aggregate

5.285.27

5.285.27

1.091.09


Metropolitan WestQuarter Ended 3/31/12

1

Val

ue

3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

2.00

2.10

Val

ue

3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/120.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

2.00

2.10

LegendReturn


ValueTotalBarclays AggregateBarclays Aggregate + 0.75%

12.256.847.59

7.255.806.55

2.011.761.89

Tacoma Employees’ Retirement SystemFixed Income Portfolio Characteristics

Metropolitan West vs. Barclays Aggregate

2

Effective Duration

0.0

4.5

9.0Years to Effective Maturity

0.0

6.0

12.0


0.0

3.0

6.0Current Yield

0.0

3.0

6.0

IndexPortfolio

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index4.894.30

5.914.67

5.574.98

6.745.12

6.705.19

6.984.96

3.714.95

3.765.01

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index7.356.47

8.676.58

8.397.08

9.687.25

9.527.40

9.767.16

6.707.13

6.657.10

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index3.412.83

3.162.56

3.452.97

4.093.08

4.332.83

4.212.35

4.692.24

4.172.22

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index3.974.18

3.844.02

3.884.03

4.314.02

4.493.95

4.643.77

4.533.68

4.533.60

Characteristics represent 89% of portfolio’s market value.

Tacoma Employees’ Retirement SystemFixed Income Structural Characteristics


3

Quarter $(MIL)#

BondMaturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTL03/31/0206/30/0209/30/0212/31/0203/31/0306/30/0309/30/0312/31/0303/31/0406/30/0409/30/0412/31/0403/31/0506/30/0509/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/07Barclays Aggregate

80.6186.0180.9178.1180.3190.0190.3215.6217.1210.8214.5232.9229.9232.7229.5227.9219.8216.0206.1206.5205.4224.4225.4226.7

16,113,100.0

174336534665748076757375889089908686877777789190

7,929

30.112.631.125.425.822.321.221.431.016.142.224.115.09.38.86.33.84.34.76.53.93.28.5

12.60.0

55.167.446.749.658.358.058.557.349.763.441.253.353.665.567.171.773.373.471.573.573.776.662.460.487.6

3.12.02.10.11.53.11.91.32.72.15.6

10.916.08.6

10.29.38.89.2

10.69.69.39.58.7

11.63.3

11.718.020.124.914.316.618.319.916.618.311.111.715.416.613.812.714.113.113.210.413.210.720.515.49.2

AAAAA AA AA A A A A A A

AA AA AA AA AA AA AA AA AA AA AA

AAAAAAAA AA

624172921171417121111122019191919212923251916157

0000011112011111101110003

652418141459

181826293329313336444533414657433943

03537

141399

1068655431001100

11

1611281922141413187

2187323

-4-43542

18150

0221819122727191623172123272625252524231715182534

2124667677676666433222220

1115131218151418201410128887997553322




4

Quarter $(MIL)#

BondMaturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTL03/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/0912/31/0903/31/1006/30/1009/30/1012/31/1003/31/1106/30/1109/30/1112/31/1103/31/12

Barclays Aggregate

224.2215.4205.7197.4185.1182.7208.8227.8236.0243.8250.1248.7252.2218.4200.1195.8164.5

16,113,100.0

117128133123149128144151125137174189197183163188175

7,929

7.313.315.1-6.3-4.34.49.78.66.1

13.28.5

-0.40.62.10.60.50.7

0.0

60.762.466.483.475.380.054.768.772.267.262.171.572.170.469.083.784.7

87.6

13.710.07.78.97.77.3

10.311.611.99.78.9

11.26.38.27.57.67.6

3.3

18.414.310.814.021.38.3

25.211.19.89.9

20.517.821.119.322.98.37.0

9.2

AA AA AA AA AA AA AA AA AA AA AA AA AA A A A A

AA

1516152220262725232032353132302935

7

00000000000000000

3

191694454

1324323132155676

43

13345788777756656

11

262218-593

10848

-6-12-2-2-1-11

0

3342537158544944413234364858575749

34

21122201111220111

0

31113432000011222

2


Tacoma Employees’ Retirement SystemFixed Income Return Versus Duration

Compared to Barclays AggregateQuarter Ended 3/31/12

5

Ret

urn

Duration

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0W

n

a

Description Legend Duration Total ReturnMetropolitan West91-Day Treasury BillBarclays Aggregate

Wna

3.760.255.01

2.850.010.30

Tacoma Employees’ Retirement SystemFixed Income Return Analysis


6

QuarterBarclays

AggregateTotal

Return

Net Management EffectInterest RateAnticipation

Sector/Issue Trading Total

06/0209/0212/02

03/0306/0309/0312/03200303/0406/0409/0412/04200403/0506/0509/0512/05200503/0606/0609/0612/062006

3.704.591.57

1.402.50

-0.150.324.112.65

-2.443.200.954.34

-0.473.01

-0.680.592.43

-0.64-0.083.811.244.33

-0.78-0.743.43

2.456.191.423.05

13.702.11

-1.613.151.905.60

-0.082.47

-0.150.552.800.040.233.912.306.59

-0.100.360.10

0.350.10

-0.01-0.000.44

-0.130.400.05

-0.110.200.050.26

-0.12-0.020.180.00

-0.070.11

-0.000.05

-2.87-4.784.90

4.0310.463.053.80

22.92-1.07-0.200.982.041.740.27

-0.380.53

-0.090.330.460.280.120.351.22

-1.50-0.90-3.15

-3.33-6.87-1.47-1.07

-12.240.660.63

-1.07-0.99-0.780.07

-0.420.110.07

-0.170.220.10

-0.130.710.90

-4.48-5.321.86

1.063.691.572.739.59

-0.540.82

-0.040.951.260.40

-0.540.53

-0.040.370.690.310.101.062.26



7

QuarterBarclays

AggregateTotal

Return



03/0706/0709/0712/07200703/0806/0809/0812/08200803/0906/0909/0912/09200903/1006/1009/1012/10201003/1106/1109/1112/11

1.50-0.522.853.006.962.17

-1.02-0.484.575.240.121.793.740.205.931.783.492.48

-1.306.540.422.293.821.12

1.56-0.362.872.977.182.00

-1.20-1.59-0.63-1.460.545.397.472.68

16.934.344.053.15

-0.3911.551.481.641.411.34

0.02-0.180.160.470.470.35

-0.21-0.170.100.070.010.900.130.081.130.280.570.34

-0.360.830.040.721.110.46

-0.040.000.22

-0.84-0.66-0.880.24

-0.49-3.37-4.461.714.213.062.37

11.841.730.000.211.663.641.12

-1.43-3.140.16

0.080.34

-0.360.330.400.35

-0.21-0.46-1.94-2.25-1.30-1.510.530.03

-2.250.54

-0.010.13

-0.400.26

-0.100.06

-0.38-0.40

0.060.160.02

-0.030.22

-0.17-0.18-1.11-5.20-6.700.433.603.732.48

11.002.550.560.680.915.001.06

-0.65-2.410.22



8

QuarterBarclays

AggregateTotal

Return



201103/12

From Inception

7.840.30

5.80

6.002.85

7.25

2.34-0.07

0.60

-3.303.74

3.12

-0.81-1.12

-2.27

-1.842.54

1.44

Tacoma Employees’ Retirement SystemFixed Income Portfolio Activity


9

AdditionsSecurity Name Coupon Maturity Quantity $(000) New

DeletionsSecurity Name Coupon Maturity Quantity $(000) Elim

Cash Equivalents FNMA Ci 15 - Tba AprChs / Cmnty Health SMirant Mid-Atlantic,National Australia BTenet Healthcare CorUnited States Treas United States Treas United States Treas United States Treas

Purchase Turnover

0.253.008.00

10.062.75

10.000.003.122.000.88

4/01/1212/25/2511/15/1912/30/28 3/09/17 5/01/18 4/26/12 2/15/4211/15/21 1/31/17

2,9771,365

25529265042020

2,8103,7651,460

2,9771,413

26430164748120

2,6943,7061,451

*********

Aegis Asset Backed SAegis Asset Backed SFNMA Ci 15 - Tba JanAmerican Home MortgaAmerican Home MortgaAquila Inc Sr CreditBanc of America FundBanc of America CommBank Amer Corp Srnt-Bear Stearns Arm TruChs / Cmnty Health SAlternative Loan TruAlternative Loan- Cedar Brakes Ii L L Citigroup Mortgage LCitigroup Mortgage LCommercial Mortgage Continental AirlinesContinental AirlinesCredit Suisse First Credit Suisse First Dolphin Subsidiary IDuke Rlty Ltd PartneFhlm Pool G01673 Sales Turnover

0.890.783.005.291.33

11.880.596.195.634.428.885.590.629.880.510.416.086.557.265.602.827.256.255.50

12/25/34 3/25/35 8/25/2512/25/3510/25/46 7/01/12 4/20/35 6/11/35 7/01/20 4/25/34 7/15/1510/25/3511/20/35 9/01/13 1/25/3611/25/36 7/10/38 8/02/20 9/15/21 7/15/3510/25/3310/15/21 5/15/13 4/15/34

4273

6,27510534

6053093

1,0002

24122

2,70816711670

1,0752645

64831

800550288

3669

6,4806217

6352293

1,0432

25017

1,36717210861

1,2182849

64929

864575313

*

*

*

***



10



Purchase Turnover

Fhlm Pool G12399 Fhgld Pool #g02884 Fhlm Pool G04079 Fhlm Pool G05716 Fhlm Pool G05866 Fhlm Pool G06242 Fhlm Pool G06354 Fhlm Pool G06361 Fhgld Pool #g13475 Fhlm Pool H03161 Fhlm Pool J13884 Fhlm Pool A95822 Fhlm Pool A96411 Fhgld Pool #e01252 Fhgld Pool #a14189 Fhgld Pool #a24156 Fhgld Pool #a33262 Fhgld Pool #c46104 Fhlm Pool Q04091 FNMA Pool #254232 FNMA Pool #323715 FNMA Pool #394854 FNMA Pool 555284 FNMA Pool #555177 Sales Turnover

6.006.005.504.504.504.504.004.006.006.503.504.004.006.004.006.505.506.504.006.506.006.507.504.86

9/15/21 4/15/37 3/15/38 4/15/39 2/15/40 9/15/40 4/15/41 3/15/41 1/15/24 9/15/37 1/15/2612/15/40 1/15/4111/15/1710/15/3310/15/31 2/15/35 9/15/2911/15/41 3/25/22 5/25/29 5/25/2710/25/17 1/25/33

6266

1,5816535

3,1763732557580

1,8692010701976

151748

225

6773

1,7176937

3,3703933598484

1,9722111742187

161949

265

*

*



11



Purchase Turnover

FNMA Pool #633698 FNMA Pool Ah3429 FNMA Pool Ah4815 FNMA Pool Al0149 FNMA Pool #655928 2533a-Z 05-117a-Lc 3345b-Pf 3345c-Fp FNMA Pool #734922 FNMA Pool #735207 FNMA Pool #844773 FNMA Pool #ad0791 FNMA Pool Ae0600 FNMA Pool Ae0605 Ge Capital CommerciaGmac Commercial MortGeneral Elec Cap CorGoldman Sachs Grp InGoldman Sachs Group G10-116j-Mp Grntrhe1999-2-A-5 Commercial Mortgage Hsbc0703-Apt Sales Turnover

7.503.503.504.007.005.505.500.430.454.507.005.204.443.974.676.275.716.880.813.633.506.684.951.44

2/25/31 1/25/26 2/25/26 2/25/41 8/25/3212/15/3211/25/35 5/15/3611/15/36 9/25/33 4/25/3412/25/35 2/25/2011/25/20 7/25/2012/10/3510/15/38 1/10/39 7/22/15 2/07/16 9/16/4012/01/30 1/11/3511/20/36

498614321

2,9661498188

14728

120444

52565520030030010091

21931

5103644625

3,2761638188

15732

129000

527658247

029010692

22228

*

**

**



12



Purchase Turnover

Ixis Real Estate CapIndymac Indx MortgagJ P Morgan Mortgage Jp Morgan Mortgage TJp Morgan Mortgage TJpa0701-5a2 J.P. Morgan MortgageMastr 2002-8 1a1 Morgan Stanley Sr NtMorgan Stanley CapitNatl City Bk Cleve SM-1 Opteum Mortgage AcceOrigen Manufactured Qwest CommunicationsRamp Series Trust Citigroup Mortgage LM-1 Soundview Home Loan Soundview Home Loan Structured Asset Structured Asset SecStructured Asset MorTexas New Mexico PwrSales Turnover

0.735.524.825.035.364.610.405.506.005.810.680.960.510.397.506.500.920.770.540.436.003.672.849.40

6/25/3510/25/3412/25/34 6/25/35 8/25/35 7/25/3510/25/3212/25/17 5/13/1412/12/49 6/07/17 1/25/34 7/25/3611/15/18 2/15/1412/25/3111/25/33 3/25/3511/25/3512/25/3610/25/3111/25/33 8/25/47 4/01/19

1012

3,25015989139

2,25032

5001,0351,200

321523

52543434050

2,0001

1,16091

800

1002

2,95715787236

1,56933

5231,184

0247

2252743352747

1,6131

1,073480

*

*

*

*

*

*

*



13



Purchase Turnover

United States Treas United States Treas United States Treas Vmh0201-A4 Wea Fin Llc Sr Nt 14Washington Mutual MoWells Fargo Asset SeWells Fargo Home Equ

Sales Turnover

2.134.382.136.577.130.564.490.39

2/15/41 5/15/41 8/15/21 5/07/27 4/15/18 5/25/3711/25/33 5/25/36

7605,3002,455

581,100

377940

1,002-NaN2,518

620

168240

*

*

Tacoma Employees’ Retirement SystemFixed Income Holdings


14

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P

EffectiveMaturity Dura Yield

$(000)

% Port

Buy/HoldReturn

Asset BackedMastr 2002-8 1a1 Origen Manufactured South Carolina StudeAstoria Power Pro-B Vmh0201-A4 Mirant Mid-Atlantic,Grntrhe1999-2-A-5 Cwabs Asset-Backed CJ.P. Morgan MortgageCitigroup Mortgage LM-1 Lbch0404-M1 Aegis Asset Backed SBrazos Higher Edu-A-M-1 Aegis Asset Backed SEducational Fundi-A-Ixis Real Estate CapSoundview Home Loan American Home MortgaCitigroup Mortgage LWells Fargo Home Equ

5.500.390.438.146.57

10.066.680.410.400.920.960.850.891.690.770.781.210.730.545.290.510.39

12/25/1711/15/1812/01/20 5/01/21 5/07/2712/30/2812/01/30 9/25/3110/25/3211/25/33 1/25/34 9/01/3412/25/34 2/25/35 3/25/35 3/25/35 4/25/35 6/25/3511/25/3512/25/35 1/25/36 5/25/36

263104650

1,2001,225

01,0662,0802,2501,5351,5131,650

864800

1,362726700363796

1,959959248

23081

6501,2001,167

292975

2,0800

1,4911,4811,650

823800

1,322653700262746

1,854843207

AaaB2

AaaNRAaaBa1Aaa

Caa1B2

Ba1B3A3A1NRB1

Aa2AaaAa1NRNRA2A1

AAABB+

AAANR

AAABB-

B-B

CCCAAA

AAAAA

AAAA+AA+

AAAA+

AAAAACCCAA+AAA

11/25/13 3/15/1312/01/20 9/01/1610/07/13 6/30/17 7/01/13 8/25/14 8/25/14 6/25/18 6/01/14 9/01/34 4/25/14 8/25/26 2/25/15 2/25/14 7/25/2512/25/12 2/25/1411/25/31 7/25/13 3/25/13

1.510.09NA

3.401.283.441.06

-0.04-0.62-0.94-0.2521.25-0.21-0.50-0.30-0.03-0.200.070.03

-2.420.040.13

3.674.14NA

12.902.029.225.995.92

16.764.90

16.181.698.012.21

14.604.191.781.854.27

10.425.762.40

237780

1,0201,239

301984

1,8380

1,1981,1071,324

718748917614652260696

1,086788203

0.160.050.000.700.850.210.671.260.000.820.760.910.490.510.630.420.450.180.480.750.540.14

1.180.85NA

-1.100.84NA

1.8217.4913.835.670.53

14.62-1.260.107.730.591.496.331.933.490.760.14



15

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Asset Backed (cont.)Brazos Higher Edu- Hsbc0703-Apt Nationstar Home EquiWashington Mutual MoG10-116j-Mp Slm Student Loan-A-6 FinanceDuke Rlty Ltd PartneMorgan Stanley Sr NtFarmers Ins ExchangeCitigroup Inc Sr Nt Morgan Stanley Sr NtGmac Inc Sr Nt Flt 1Cit Group Inc 2pri NGoldman Sachs Grp InRoyal Bk Scotland PlMorgan Stanley Nt FlGoldman Sachs Group Health Care Ppty InvBank of America CorpCch Ii Llc / Cch Ii

1.561.440.470.563.500.44

6.256.006.006.384.202.537.000.813.950.883.636.305.63

13.50

10/27/3611/20/36 3/25/37 5/25/37 9/16/4010/25/40

5/15/13 5/13/14 8/01/14 8/12/1411/20/1412/01/14 5/04/15 7/22/15 9/21/1510/15/15 2/07/16 9/15/1610/14/1611/30/16

250807

1,3651,0733,249

800

550800495750340838620300

1,200910300700

1,800505

250776

1,3651,0363,149

800 0

300495750340838620

01,200

9100

7001,800

505

NR

Aa2CaCa

NRAaa

Baa2A2

Baa2A3A2B1B1A1A2A2A1

Baa2Baa1

B2

AA+AAA

B-D

NRAAA

BBB-A-

BBB+A-A-B+

BB-A-A

A-A-

BBBA-B

7/25/16 9/20/15 5/25/24 6/25/1711/16/1410/25/40

5/15/13 5/13/14 8/01/14 8/12/1411/20/1412/01/14 5/04/15 7/22/15 9/20/1510/15/15 2/07/16 9/15/1610/14/1611/30/16

0.290.01

-3.85-2.371.16NA

1.311.95NA

2.192.44NA

2.71-0.143.22NA

3.703.913.913.46

4.084.757.91

24.551.06NA

2.833.69NA

2.643.88NA

6.964.663.61NA

4.543.334.099.70

225699661448

3,3400

21,383 0

3140

814343

0621

01,213

00

7861,914

576

0.150.480.450.312.290.00

14.67

0.000.220.000.560.240.000.430.000.830.000.000.541.310.39

0.572.14

-1.0616.303.13NA

1.795.14NA

4.905.60NA

1.74NA

8.88NA

4.413.71

12.291.62



16

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Finance (cont.)Morgan Stanley Fr 5.Health Care Ppty InvNational Australia BMorgan Stanley Fr 5.Natl City Bk Cleve SBank Amer Chrlt Nc MBank Amer Chrlt Nc MCitigroup Inc Glbl SBear Stearns Cos IncCredit Suisse Ny BrhGoldman Sachs Group Cit Group Inc 2pri NHighwoods Rlty L P NWea Fin Llc Sr Nt 14General Elec Cap CorCitigroup Inc Sr Nt Hbos Plc Sub Mtn 144Goldman Sachs Grp InBanc One Corp Sub NtBank Amer Corp Srnt-Health Care Reit IncGoldman Sachs Group

5.456.002.755.550.686.100.856.007.256.006.156.637.507.135.636.136.757.508.535.634.955.25

1/09/17 1/30/17 3/09/17 4/27/17 6/07/17 6/15/17 6/15/17 8/15/17 2/01/18 2/15/18 4/01/18 4/01/18 4/15/18 4/15/18 5/01/18 5/15/18 5/21/18 2/15/19 3/01/19 7/01/20 1/15/21 7/27/21

200

1,0000

6751,200

300500350

1,315833900540917

1,100720700

1,600300

2,3201,5001,000

500

200

1,000650675

0300500350

1,315833900540917

0720700

1,600300

2,320500

1,000500

A2

Baa2Aa3A2A3A3A3A3

Aa3Aa2A1B1

Baa3A2

Aa2A3

Baa3A1A1

Baa1Baa2

A1

A-

BBBAA-

A-A

A-A-A-A

BBB+A-

BB-BBB-

A-AA+

A-BB+

A-A-A-

BBB-A-

1/09/17 1/30/17 3/09/17 4/27/17 6/07/17 6/15/17 6/15/17 8/15/17 2/01/18 2/15/18 4/01/18 4/01/18 4/15/18 4/15/18 5/01/18 5/15/18 5/21/18 2/15/19 3/01/19 7/01/20 1/15/21 7/27/21

4.124.194.584.29NA

4.39NA

4.594.824.924.884.814.785.045.125.044.765.405.376.466.997.16

4.943.482.865.021.364.60NA

3.693.344.384.634.994.684.932.773.898.035.024.474.994.625.39

204

1,111647691

0321

0389

1,586902971585

1,0520

835785

1,502343

2,875521

1,024495

0.140.760.440.470.000.220.000.271.090.620.670.400.720.000.570.541.030.241.970.360.700.34

7.494.09NA

7.50NA

15.18NA

7.534.40

11.316.006.313.537.014.756.76

19.165.155.45

14.388.352.82



17

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Finance (cont.)Health Care Reit IncPrudential Hldgs LlcMetropolitan Life I Farmers Exchange Ca Security Benefit LifNationwide Mut Ins CCitigroup Inc Glbl SCitigroup Inc Sr Nt Government & AgencyUnited States Treas United States Treas FNMA Pool #ad0791 FNMA Pool Ae0605 FNMA Pool Ae0600 United States Treas United States Treas United States Treas United States Treas United States Treas

5.258.707.807.057.456.600.866.88

0.000.884.444.673.972.132.002.134.383.13

1/15/2212/18/2311/01/25 7/15/2810/01/33 4/15/34 8/25/36 3/05/38

4/26/12 1/31/17 2/25/20 7/25/2011/25/20 8/15/2111/15/21 2/15/41 5/15/41 2/15/42

300

1,0001,0001,3041,482

9571,000

350 00

1,1281,1451,1922,455

01,5155,300

0

300

1,0001,0001,3041,482

9571,000

350

201,4601,1241,1411,187

03,765

7550

2,810

Baa2Baa1

A2Baa2Ba2A3

Baa1A3

GOVGOV

AaaAaaAaa

GOVGOVGOVGOVGOV

BBB-

A+A

BBB+BBB-

A-A-A-

TSYTSY

AAAAAAAAAAA+TSYTSYTSYTSY

1/15/2212/18/2311/01/25 7/15/2810/01/33 4/15/19 8/25/36 3/05/38

4/26/12 1/31/17 2/25/20 7/25/2011/25/20 8/15/2111/15/21 2/15/41 5/15/41 2/15/42

7.517.528.639.37NA

5.66NA

12.24

0.074.72NANANA

8.608.60

21.91NA

18.27

4.665.804.826.14NA

7.09NA

5.72

0.031.01NANANA

1.832.183.45NA

3.35

314

1,2431,2951,425

0931

0404

29,027

201,451

0000

3,706996

02,6948,867

0.220.850.890.980.000.640.000.28

19.91

0.011.000.000.000.000.002.540.680.001.856.08

8.110.693.694.89NA

7.88NA

6.66

NANANANANA

-2.05NA

-1.98-6.90

NA



18

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

IndustrialAquila Inc Sr CreditCedar Brakes Ii L L Sabine Pass Lng L P Qwest CommunicationsChs / Cmnty Health SSabine Pass Lng L P Tenet Healthcare CorHca Inc Sr Secd Nt8.Arch Coal Inc Sr Nt Chs / Cmnty Health SHca Inc Sr 1lien7.87Indiantown CogeneratWilliams Cos Inc DelGeneral Elec Cap CorSouthern Un Co New SGeneral Elec Cap CorSouthern Un Co New J MiscellaneousCash Equivalents Morgan Stanley Cap

11.889.887.257.508.887.50

10.008.507.008.007.889.777.880.918.256.883.56

0.253.22

7/01/12 9/01/1311/30/13 2/15/14 7/15/1511/30/16 5/01/18 4/15/19 6/15/1911/15/19 2/15/2012/15/20 9/01/21 5/05/2611/15/29 1/10/3911/01/66

4/01/12 7/16/49

605579

1,030525475350

01,070

4750

325487443700500400

1,000

-3,491240

0

4121,030

0234350420

1,070475255325487443700500200

1,000

-514240

Baa3Baa3

B3Baa3

B3B3B1

Ba3B1NRBa3Ba1

Baa3Aa2

Baa3Aa2Ba1

AaaAaa

BBB

BBB-BB-BB

BBB-BB-BBB+

BBB

BB+BBB-AA+

BBB-AA+

BB

AAANR

7/01/12 9/01/1311/30/13 2/15/14 7/15/1511/30/16 5/01/18 4/15/19 6/15/1911/15/19 2/15/2012/15/20 9/01/21 5/05/2611/15/29 1/10/39 5/01/35

4/01/12 8/18/16

0.471.301.541.882.783.844.475.165.345.505.845.636.86

-1.349.36

12.73-2.53

0.014.04

1.827.573.817.307.605.717.036.508.457.396.279.144.622.476.395.234.42

0.251.85

0

4241,087

0242375481

1,189438264357505552571597247876

8,206

-514254

-260

0.000.290.750.000.170.260.330.820.300.180.240.350.380.390.410.170.605.63

-0.350.17

-0.18

0.520.756.25NA

2.518.58NA

3.42-7.84

NA3.562.682.86

10.432.334.52

-5.08

NA2.82



19

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

MortgageFNMA Pool 555284 Fhgld Pool #e01252 Fhlm Pool G12399 FNMA Pool #254232 Fhgld Pool #g13475 FNMA Ci 15 - Tba JanFNMA Ci 15 - Tba AprFhlm Pool J13884 FNMA Pool Ah3429 FNMA Pool Ah4815 FNMA Pool #394854 FNMA Pool #323715 Fhgld Pool #c46104 FNMA Pool #633698 Fhgld Pool #a24156 Structured Asset Ramp Series Trust FNMA Pool #655928 2533a-Z FNMA Pool #555177 FNMA Pool #734922 Fhgld Pool #a14189

7.506.006.006.506.003.003.003.503.503.506.506.006.507.506.506.006.507.005.504.864.504.00

10/25/1711/15/17 9/15/21 3/25/22 1/15/24 8/25/2512/25/25 1/15/26 1/25/26 2/25/26 5/25/27 5/25/29 9/15/29 2/25/3110/15/3110/25/3112/25/31 8/25/3212/15/32 1/25/33 9/25/3310/15/33

73

132767228806

6,2750

2,2713,4542,155

15147

12058619198

440486

2,966338

1,963488

51

122705212752

01,3652,1913,3552,094

14343

11458217397

397465

0333

1,816418

AaaAgyAaaAgyAaaAaaAaaAaaAaaAaaAgyAgyAgyAgyAaaNRAaaAgyAaaAaaAaaAaa

AAAAGYAAAAGYAAAAAAAAAAAAAAAAAAAGYAGYAGYAGYAAA

BBBB-

AGYAAAAAAAAAAAA

1/25/15 3/15/14 8/15/14 1/25/1510/15/14 3/25/15 3/25/16 6/14/15 6/25/15 7/25/15 8/25/15 4/25/16 3/15/1610/25/15 4/15/1710/25/31 2/25/1612/25/14 2/15/15 5/25/16 8/25/14 1/15/15

2.581.862.162.602.332.673.062.532.372.423.123.643.533.174.22

11.113.052.492.171.311.972.22

1.652.302.151.842.381.882.011.861.801.852.032.782.491.633.221.656.460.172.012.891.532.02

59

130764237815

01,4132,2933,5232,198

16348

13069619797

397550

0357

1,936439

0.040.090.520.160.560.000.971.572.421.510.110.030.090.480.140.070.270.380.000.241.330.30

1.801.170.912.090.911.10NA

1.141.141.143.251.401.191.761.198.261.932.381.801.220.880.47



20

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Mortgage (cont.)Credit Suisse First Wells Fargo Asset SeStructured Asset Sec2733e-Me Fhlm Pool G01673 Bear Stearns Arm TruFNMA Pool #735207 Indymac Indx MortgagJ P Morgan Mortgage Commercial Mortgage Fhgld Pool #a33262 Banc of America FundBanc of America CommJp Morgan Mortgage TCredit Suisse First Jpa0701-5a2 Jp Morgan Mortgage TAlternative Loan TruAlternative Loan- 05-117a-Lc Ge Capital CommerciaFNMA Pool #844773

2.824.493.675.005.504.427.005.524.824.955.500.596.195.035.604.615.365.590.625.506.275.20

10/25/3311/25/3311/25/33 1/15/34 4/15/34 4/25/34 4/25/3410/25/3412/25/34 1/11/35 2/15/35 4/20/35 6/11/35 6/25/35 7/15/35 7/25/35 8/25/3510/25/3511/20/3511/25/3512/10/3512/25/35

1,118

7361,1602,337

288258521652

3,2501,081

4581,431

108930946

1,148942

1,7122,7081,530

525581

1,087

6570

2,3370

255493650

0862450

1,40115

770298

1,11050

1,6900

1,3810

461

Baa1

NRAaaAaaAaaB2

AaaB1

Baa2AaaAaaB1

AaaAaaAaaB1NRNR

Caa1AaaAaaAaa

AAAAAAAAAAAAAAA

BBB+AAAAAAAAAAAAAAAAAAAAABBB

NRAAAACC

CCCAAA

NRAAA

6/25/16 6/25/14 6/25/23 8/15/17 3/15/14 9/25/1412/25/1512/25/19 1/25/14 9/11/12 8/15/14 3/20/20 2/11/13 6/25/35 5/16/12 7/25/3512/25/13 2/25/19 7/20/19 3/25/14

NA 2/25/15

0.122.04

-0.045.051.690.023.34

-0.040.030.412.42

-1.220.80

-0.230.14

14.140.24

-0.78-3.211.110.221.38

5.062.774.582.461.18

10.182.447.309.971.601.504.565.885.173.495.176.61

11.2912.600.563.842.43

1,000

6810

2,6320

226569590

0873491

1,05915

758298

1,02749

1,2970

1,5100

495

0.690.470.001.810.000.150.390.400.000.600.340.730.010.520.200.700.030.890.001.040.000.34

11.041.726.961.201.75

16.311.751.929.180.831.50

10.281.752.460.836.992.27

10.6213.701.771.161.81



21

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Mortgage (cont.)3345b-Pf Greenwich Captial CoOpteum Mortgage AcceSv06opt5-2a4 3345c-Fp Citigroup Mortgage LSoundview Home Loan Citicorp ResidentialFhgld Pool #g02884 Fhlm Pool H03161 Fhlm Pool G04079 Commercial Mortgage Gmac Commercial MortCommercial Mortgage Fhlm Pool G05716 Credit Suisse CommerFhlm Pool G05866 Fhlm Pool G06242 Fhlm Pool A95822 Fhlm Pool A96411 FNMA Pool Al0149 Fhlm Pool G06361

0.435.320.510.480.450.410.436.056.006.505.506.085.715.444.505.314.504.504.004.004.004.00

5/15/36 6/10/36 7/25/36 7/25/3611/15/3611/25/3612/25/36 3/25/37 4/15/37 9/15/37 3/15/38 7/10/3810/15/38 3/10/39 4/15/3912/15/39 2/15/40 9/15/4012/15/40 1/15/41 2/25/41 3/15/41

854

1,0051,1571,000

8491,1652,0001,5001,432

4111,5811,865

6551,1802,357

5701,2026,3441,8691,3001,4961,668

773

1,0051,1431,000

7601,095

01,5001,366

3360

7900

1,1802,292

5701,1673,168

01,2801,4531,636

AaaAaa

Caa3Caa3Aaa

Caa1Ba3

Caa1AaaAaaAaaAaaAaaAaaAaaAaaAaaAaaAaaAaaAaaAaa

AAAAAACCC

B-AAA

BBA

AAAAAAAAA

A-AAA

AAAA

A+AAAAAAAA+AAAAAAAAA

8/15/13 3/11/1410/25/26 5/25/25 2/15/14 1/25/15 5/25/14 3/25/37 6/15/14 4/15/16 1/15/14 3/10/16 5/15/1212/12/1611/15/14 8/18/1611/15/1411/15/14 8/15/15 8/15/16 6/25/16 5/15/16

0.411.81

-4.2421.220.48

-0.11-0.28-4.512.073.581.683.500.344.122.003.912.052.182.502.742.592.68

0.731.756.308.870.685.93

10.749.540.942.951.152.393.623.141.962.822.032.032.472.792.662.72

770

1,071554357757949

01,0211,510

3770

8950

1,2982,432

6281,2383,361

01,3401,5241,713

0.530.730.380.240.520.650.000.701.040.260.000.610.000.891.670.430.852.310.000.921.051.18

0.041.27

15.1615.300.036.729.588.161.721.441.453.340.912.921.114.481.101.100.150.640.730.64



22

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Mortgage (cont.)Fhlm Pool G06354 Fhlm Pool Q04091 Bear Stearns CommercBanc of America CommDbrr Cmbs Re-Remic TGs Mortgage Secs Wfrbs Commercial MorAmerican Home MortgaMorgan Stanley ABS CJp Morgan Chase CommStructured Asset MorMorgan Stanley CapitCitigroup CommercialMl-Cfc Commercial MoMorgan Stanley CapitMorgan Stanley ABS C MunicipalsCalifornia St Illinois St Go Bds Illinois St Go Bds California St Go Bds

4.004.005.314.864.543.713.671.334.895.442.844.125.895.175.815.16

5.505.677.357.30

4/15/4111/15/4110/12/42 7/10/43 7/14/44 8/12/4411/18/4410/25/46 6/12/47 6/12/47 8/25/47 7/16/4912/10/4912/12/4912/12/4910/12/52

3/01/16 3/01/18 7/01/3510/01/39

2,4991,2131,4051,175

3851,320

5902,2001,1702,0691,955

140410

1,2901,8151,600

500750600685

2,4621,1981,4051,175

3851,320

5902,1661,1702,0691,864

140410

1,290780

1,600

500750600685

AaaAaaAaaAaaAaaAaaAaa

Caa3AaaAaa

Caa2AaaAaaAaaAaaAaa

NRA1A1A1

AAAAA+

NRAAA

NRNRNR

CCCAAA

A+CCC

NRA+A+A+

AAA

NRA+A+A-

8/15/1611/14/15 8/12/15 2/10/15 3/17/21 5/14/21 8/16/21 8/25/29 8/12/1412/12/1610/25/15 6/18/21 5/10/17 7/12/16 8/14/17 9/12/15

3/01/16 3/01/18 1/01/29 4/01/37

2.742.623.102.707.327.597.79

-2.262.314.121.607.594.393.844.573.16

NA5.029.36

11.40

2.782.441.761.573.193.213.186.560.652.87

31.053.232.802.622.871.94

NA3.935.725.43

2,5781,2551,5631,283

4251,372

6131,1241,2852,300

981150468

1,423893

1,77171,288

0

818702858

1.770.861.070.880.290.940.420.770.881.580.670.100.320.980.611.21

48.90

0.000.560.480.59

0.640.211.821.950.860.440.90

14.881.825.00

10.740.794.783.645.251.46

NA3.827.787.43



23

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Municipals (cont.) TransportationJetblue Airways CorpContinental AirlinesContinental Airlines UtilitiesNextel CommunicationQwest CommunicationsCalpine Constr Fin CIntelsat Jackson HldNrg Energy Inc Sr NtTexas New Mexico PwrDolphin Subsidiary I Total Portfolio

0.736.557.26

5.958.008.009.507.639.407.25

3/15/14 8/02/20 9/15/21

3/15/1410/01/15 6/01/16 6/15/16 1/15/18 4/01/1910/15/21

1,220454

1,410

905200575680490800800

1,220428

1,365

905200575680490

00

B1Baa2Baa2

B1Baa3Ba3B3B1

Baa1Ba1

BB+BBB+BBB+

B+BBBB

BBB-

BBB-BB+

3/15/14 2/02/15 3/15/17

3/15/1410/01/15 6/01/16 6/15/16 1/15/18 4/01/1910/15/21

NA2.654.12

1.822.943.473.354.53NA

6.89

NA3.755.15

5.955.845.618.217.57

18.806.15

2,378

0

4611,4881,948

905214625711491

00

2,946

1.63

0.000.321.021.34

0.620.150.430.490.340.000.002.02

NA4.934.54

5.172.082.552.272.16NA

4.46

3.97


1


3/31/02Inception

DateInception

ReturnPost Advisory Group Policy Index Performance Objective

Eaton Vance CSFB Leveraged Loan Performance Objective

High Yield Composite Policy Index

Indices ML US High Yld. BB/B Const. ML High Yld II Tot Ret S&P LSTA Leverage Loan 100 Index

4.804.434.86

3.063.473.60

4.244.43

4.435.154.37

9.8410.5711.45

5.966.296.54

8.6010.57

10.5711.658.21

5.475.016.32

3.442.292.66

4.825.01

5.014.603.01

6.206.197.94

5.556.19

6.195.642.47

16.8123.5525.30

16.5723.55

19.9823.78

6.917.739.48

6.777.73

7.237.84

8.228.95

9/30/05 9/30/05 9/30/05

6/30/11 6/30/11 6/30/11

9/30/05 9/30/05

Since 9/30/05 9/30/05 9/30/05

7.258.27

10.02

3.442.292.66

7.158.27

7.548.36


Active High Yield Fixed Income PortfoliosPeriods Ended 3/31/12

2

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

1 xm

1 xm

1 x m

1 x m

1 x m

1

x

m

1 xm x

m

Med75th

95th

25th

5th

Rat

e of

Ret

urn

High Yield Composite 1 Policy Index x ML US HY BB/B Cons m ML High Yld II Tot Ret MedianNumber of Funds


4.24 (79)4.43 (73)4.43 (73)5.15 (46)

5.08142

8.60 (80)10.57 (63)10.57 (63)11.65 (43)

11.24

142

4.82 (55)5.01 (52)5.01 (52)4.60 (60)

5.11141

5.55 (60)6.19 (47)6.19 (47)5.64 (59)

6.13141

9.28 (69)9.85 (59)9.85 (59)9.83 (59)

10.15

137

16.57 (81)23.55 (17)19.98 (52)23.78 (17)

20.11

134

6.77 (73)7.73 (45)7.23 (59)7.84 (43)

7.58124

8.22 (75)8.95 (49)

8.90

87




3

Yie

ld

0.0 5.0 10.0 15.0 20.0 25.0 30.0-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

x

m


1.00 5.00 10.00 15.00 20.00 25.00

0.23 0.81 2.19 2.98 3.38 3.52

Description Legend Yrs to Mat YieldPost Advisory GroupHigh Yield CompositeML US High Yld. BB/B Const.ML High Yld II Tot Ret

xm

5.45 5.45 6.80 6.68

7.57 7.57 6.65 7.42


Post Advisory GroupQuarter Ended 3/31/12

1

Val

ue

3/06 3/07 3/08 3/09 3/10 3/11 3/120.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

Val

ue

3/06 3/07 3/08 3/09 3/10 3/11 3/120.80

0.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

1.90

LegendReturn


ValueTotalPolicy Index Performance Objective

16.8123.5525.30

7.258.27

10.02

1.581.681.87

Tacoma Employees’ Retirement SystemFixed Income Portfolio Characteristics

Post Advisory Group vs. ML US High Yld. BB/B Const.

2

Effective Duration

0.0

3.0

6.0Years to Effective Maturity

0.0

4.5

9.0


0.0

6.0

12.0Current Yield

0.0

6.0

12.0

IndexPortfolio

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index3.894.50

4.144.60

4.014.69

4.014.67

4.334.75

3.984.65

4.014.69

4.134.72

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index5.556.86

5.696.89

5.486.94

5.436.78

5.876.89

5.506.88

5.386.75

5.456.80

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index8.508.18

7.807.28

6.597.22

7.386.82

7.817.01

8.918.57

8.407.46

7.576.65

Date 6/10 9/10 12/10 3/11 6/11 9/11 12/11 3/12Port

Index8.318.25

8.217.93

8.157.88

8.077.72

8.257.74

8.398.32

8.267.85

8.077.51




3

Quarter $(MIL)#

BondMaturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTL09/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/0912/31/0903/31/1006/30/1009/30/1012/31/1003/31/1106/30/11ML US High Yld. BB/B Const.

25.025.351.376.4

103.3106.8109.8110.4111.6111.6109.2111.9106.889.8

121.3127.0139.2145.6132.670.674.776.679.766.3NA

7595

11614816815315815215215616415815615917816717416511293

116122126116

1,691

9.912.914.912.222.919.816.012.713.412.03.59.9

10.311.617.013.610.810.125.47.25.74.27.93.82.4

85.282.180.085.874.977.782.083.883.384.892.586.986.686.381.786.087.587.874.689.992.595.592.195.289.2

3.33.42.91.41.41.71.32.82.62.53.32.52.32.11.30.41.72.10.02.81.80.30.00.95.6

1.71.62.20.50.70.80.70.70.70.70.70.70.70.00.00.00.00.00.00.00.00.00.00.02.7

B B B B B B B B B B B B B B B B B B

BB B B B B B

BB

98

1099

10101086556588

111178989

1011

000000000000001010000000

11

0000000000000000000000000

82827375717174737067707679837173716649647071706964

33637755

10857

117

13949

281154632

0000000000000000000000000

1131111121111110122343351

468

111211111111181811346

10121114131113111311




4

Quarter $(MIL)#

BondMaturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTL09/30/1112/31/1103/31/12

ML US High Yld. BB/B Const.

63.764.867.9

NA

111113105

1,691

7.84.73.8

2.4

92.295.095.2

89.2

0.00.30.9

5.6

0.00.00.0

2.7

B B B

BB

111211

11

000

11

000

0

636366

64

10106

2

000

0

555

1

111011

11


Tacoma Employees’ Retirement SystemFixed Income Return Versus Duration

Compared to Barclays AggregateQuarter Ended 3/31/12

5

Ret

urn

Duration

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

na

x

Description Legend Duration Total ReturnPost Advisory Group91-Day Treasury BillBarclays AggregateML US High Yld. BB/B Const.

nax

4.130.255.014.72

4.800.010.304.43

Tacoma Employees’ Retirement SystemFixed Income Percent Invested by Sectors


6

Name

Moody’s Quality RatingsAaa Aa A Baa Ba B Other NR

Total

Government Treasury Agency Corporate Industrial Utility Finance Yankee Transportation Mortgage GNMA FHLMC FNMA Other Mortgage Municipals Cash OtherTotal

---------

---------------

---

---------------

---

2.50

---

2.50

---------

---------------

---

---------------

---

---

------

---------

---------------

---

---------------

---

---

------

---------

1.38

------

1.38---

---

---------------

---

---

---

1.38

---------

24.5215.143.066.32

---

1.28

---------------

---

3.25

---

29.05

---------

53.2542.127.823.31

---

2.53

---------------

---

0.44

---

56.23

---------

7.437.08

---0.35

---

1.37

---------------

---

---

---

8.80

---------

2.052.05

---------

---

---------------

---

---

---

2.05

---------

88.6366.3910.8811.36

---

5.18

---------------

---

6.19

---

100.00



7

QuarterBarclays

Aggregate Style Index*Total

Return



12/05

03/0606/0609/0612/06200603/0706/0709/0712/07200703/0806/0809/0812/08200803/0906/0909/0912/09200903/1006/10

0.59

-0.64-0.083.811.244.331.50

-0.522.853.006.962.17

-1.02-0.484.575.240.121.793.740.205.931.783.49

0.05

3.510.280.222.967.391.240.85

-2.50-4.16-4.73-5.202.83

-8.99-22.20-31.63

4.9021.4011.075.84

51.582.43

-3.18

0.64

2.870.204.034.19

11.722.740.320.35

-1.162.24

-3.041.81

-9.48-17.63-26.39

5.0223.1914.826.04

57.514.210.31

1.16

2.050.232.743.338.592.760.491.02

-0.154.16

-2.192.22

-4.50-16.16-19.94

7.9811.989.754.52

38.723.240.43

NA

-0.100.17

-0.60-0.80-1.33-0.380.200.180.420.420.60

-0.151.582.454.54

-0.36-4.58-3.56-1.42-9.61-0.85-0.09

NA

-0.90-0.53-0.73-0.07-2.220.200.060.690.751.700.670.873.452.347.506.42

-2.990.880.064.21

-0.120.29

NA

0.190.400.040.000.630.20

-0.09-0.20-0.16-0.25-0.41-0.31-0.05-3.32-4.07-3.09-3.63-2.38-0.16-8.990.00

-0.09

0.51

-0.810.03

-1.29-0.86-3.130.020.170.671.011.930.850.414.981.476.452.97

-11.21-5.06-1.52

-18.79-0.970.12

Index* : Policy Index



8

QuarterBarclays

Aggregate Style Index*Total

Return



09/1012/10201003/1106/1109/1112/11201103/12

From InceptionFrom 12/05

2.48-1.306.540.422.293.821.127.840.30

5.805.94

4.263.707.713.22

-1.16-8.854.77

-2.454.12

2.472.57

6.742.40

14.263.641.13

-5.035.895.404.43

8.278.50

5.792.51

12.443.890.70

-3.994.825.284.80

7.257.36

-0.91-0.24-2.08-0.52-0.150.45

-0.85-1.07-0.63

-1.65

0.190.400.760.81

-0.220.880.762.251.28

2.44

-0.23-0.05-0.36-0.05-0.06-0.28-0.98-1.37-0.27

-1.94

-0.950.11

-1.820.24

-0.431.04

-1.07-0.120.37

-1.02-1.15

Index* : Policy Index



9



Carrizo Oil & Co IncInverness Med InnovaQuebecor Media Inc SAlliance Data SystemAmerigas Fin Corp / Cequel CommunicationClear Channel Ww HldCopano Energy L L C Covanta Hldg Corp SrFmg Resources AugustFidelity Natl InformFidelity Natl InformFresenius Med Care UHughes Satellite SysIpayment Inc Sr Pik Kemet Corp Sr Nt 144Kinetic Concepts IncLevel 3 Fing Inc GtdLevel 3 Fing Inc GtdLinn Energy Llc Sr NMantech Intl Corp SrOmega Healthcare InvReynolds Group IssueServicemaster Co Sr Purchase Turnover

8.637.887.756.387.008.627.627.126.386.887.625.005.887.62

10.2510.507.00

10.008.626.257.255.889.888.00

10/15/18 2/01/16 3/15/16 4/01/20 5/20/2211/15/17 3/15/20 4/01/2110/01/22 4/01/22 7/15/17 3/15/22 1/31/22 6/15/21 5/15/18 5/01/18 5/04/18 2/01/18 7/15/2011/01/19 4/15/18 3/15/24 8/15/19 2/15/20

225250400400425625475475450275200300450200500200499450200350400575150375

237261411407434671466500457268219296462216460215509493210340426564153399

*********************

Accellent Inc Sr SecAleris Intl Inc Sr NAlere Inc Sr Sb Nt8.Amerigroup Corp Sr NAngiotech PharmaceutAperam Sr Nt 144a 16Atlas Pipeline PartnAudatex North AmericBi-Lo Llc / Bi-Lo FiBon Ton Dept Stores C&S Group EnterpriseCco Hldgs Llc / Cco Chs / Cmnty Health SCit Group Inc Secd NClear Channel Ww HldDavita Inc Sr Nt 6.3Delta Pass-Through TEh Hldg Corp Sr Nt 1Elan Fin Plc / Elan Energy Transfer EquiEquinix Inc Sr Nt 7%Exide Technologies SFgi Holding Co Inc SGeoeye Inc Sr Sec 8.Sales Turnover

8.387.638.637.504.247.388.756.759.25

10.258.387.888.887.009.256.388.027.638.757.507.008.63

11.258.63

2/01/17 2/15/1810/01/1811/15/1912/01/13 4/01/16 6/15/18 6/15/18 2/15/19 3/15/14 5/01/17 4/30/18 7/15/15 5/01/1612/15/1711/01/18 2/10/24 6/15/2110/15/1610/15/20 7/15/21 2/01/1810/01/1510/01/16

45027535037510035025027555052548

15015380053460034

200600475250500515325

45226834541191

29926129056733751

16215980057461435

210641519264385511335

**

**

**

***

*******



10



Spectrum Brands Inc Sprint Nextel Corp GSuncoke Energy Inc STpc Group Llc Sr SecViasat Inc Sr Nt 144

Purchase Turnover

9.507.007.628.256.88

6/15/18 3/01/20 8/01/1910/01/17 6/15/20

350225350600525

395228360629538

*****

Harland Clarke HldgsHolly Energy PartnerItc Deltacom Inc Sr Ipayment Inc Sr Nt 1Iron Mtn Inc Del Sr Kemet Corp Sr Nt 10.Landrys Restaurants Lantheus Medical ImaLevel 3 Escrow Inc SLimited Brands Inc SLinn Energy Llc Sr NNational Money Mart Penn Va Corp Sr Nt 7Reynolds Group IssueRegency Energy PartnRegency Energy PartnRyerson Inc Sr Nt 12Seagate Hdd Cayman GSolutia Inc Sr Nt 7.Spectrum Brands Inc Speedway MotorsportsSuncoke Energy Inc STpc Group Llc Sr SecThompson Creek MetalSales Turnover

9.506.25

10.5010.257.75

10.5011.639.758.136.636.50

10.387.259.886.886.50

12.007.757.88

12.006.757.638.257.38

5/15/15 3/01/15 4/01/16 5/15/1810/01/19 5/01/1812/01/15 5/15/17 7/01/19 4/01/21 5/15/1912/15/16 4/15/19 8/15/1912/01/18 7/15/2111/01/1512/15/18 3/15/20 8/28/19 2/01/19 8/01/1910/01/17 6/01/18

17255020062512532510025050045

400125275175275525100750175400325350600200

14455421058813735111122449349

397138256170292546103798190435328350600178

*

*

*

*

****

*******



11



Purchase Turnover

Toys R US Ppty Co I United Air Lines IncUnited Rentals NorthXerium Technologies Cash Equivalents

Sales Turnover

10.759.759.258.880.25

7/15/17 1/15/1712/15/19 6/15/18 4/01/12

22538

400425

1,392

24644

419385

1,392

**



12

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Asset BackedUnited Air Lines Inc FinanceHarland Clarke HldgsCit Group Inc Secd NPenn Va Corp Sr Nt 1Credit Accep Corp MiHealthnet Inc Sr Nt Dupont Fabros TechnoIcahn Enterprises LpCno Finl Group Inc SSeagate Hdd Cayman GPenn Va Corp Sr Nt 7Amerigroup Corp Sr NCovanta Hldg Corp SrOmega Healthcare Inv IndustrialBlyth Inc Sr Nt 5.5%Angiotech PharmaceutBon Ton Dept Stores Momentive Performanc

9.75

9.507.00

10.389.136.388.508.009.007.757.257.506.385.88

5.504.24

10.2512.50

1/15/17

5/15/15 5/01/16 6/15/16 2/01/17 6/01/1712/15/17 1/15/18 1/15/1812/15/18 4/15/1911/15/1910/01/22 3/15/24

11/01/1312/01/13 3/15/14 6/15/14

623

375800400600480675450525750275675

00

550750525550

584

2030

400600480675450525

00

300450575

550650

0550

Baa2

Caa1B2B3B1

Ba3Ba1Ba3B1

Ba1B2

Ba3Ba3Ba2

B3NR

Caa1B2

BBB+

B-B+

BBBBBBB

BBB-B+

BB+BB-BB+

B+BBB-

B+NRB-

CCC

1/15/15

5/15/15 5/01/16 6/15/16 2/01/17 6/01/1712/15/17 7/15/16 1/15/1812/15/18 4/15/1911/15/1910/01/22 3/15/20

11/01/1312/01/13 3/15/14 6/15/14

2.59

2.433.613.233.864.324.443.524.445.355.395.687.516.90

1.480.061.621.86

4.46

16.217.06

10.977.144.836.387.567.286.598.565.936.176.48

4.0210.6534.779.04

669669

171

0392648514743468567

00

329457564

4,851

562588

0587

1.381.38

0.350.000.811.331.061.530.961.170.000.000.680.941.169.98

1.161.210.001.21

8.28

18.32NA

-5.555.534.424.791.924.504.76

-5.588.13NANA

3.117.40

40.063.66



13

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Stream Global Svcs IApria Healthcare GroKnowledge Learning CTube City Ims Corp SHolly Energy PartnerEssar Steel Algoma IChs / Cmnty Health SFgi Oper Co Inc Sr NVector Group Ltd Sr Affinion Group Inc SRyerson Inc Sr Nt 12Landrys Restaurants Metals Usa Inc Sr NtInverness Med InnovaQuebecor Media Inc SHyva Global Bv Gtd SAperam Sr Nt 144a 16Supervalu Inc Sr Nt Cgg Veritas Sr Nt 9.Wendys / Arbys RestaH & E Equipment ServElan Fin Plc / Elan

11.2511.257.759.756.259.388.88

10.2511.0011.5012.0011.6311.137.887.758.637.388.009.50

10.008.388.75

10/01/1411/01/14 2/01/15 2/01/15 3/01/15 3/15/15 7/15/15 8/01/15 8/15/1510/15/1511/01/1512/01/1512/01/15 2/01/16 3/15/16 3/24/16 4/01/16 5/01/16 5/15/16 7/15/16 7/15/1610/15/16

525650300500550650301270350650600675350250275250350445530625450600

525650300500

0650148270350650500575350500675250

0445530625450

0

B1

Ba3B3B3B1B3B3

Ba3B1

Caa1Caa1

B3B2B2B1B1B2B2

Ba3B3B3B2

B+

BB+BB

BB-B+

BB

B+CCC+CCC+

BB+

BB+B+BB

BBB-B+

BB-BB-

10/01/1411/01/14 2/01/15 2/01/15 3/01/15 3/15/15 7/15/15 8/01/15 8/15/1510/15/1511/01/1512/01/1212/01/15 2/01/16 3/15/16 3/24/16 4/01/16 5/01/16 5/15/16 7/15/16 7/15/1310/15/16

2.042.132.362.412.792.542.782.782.762.652.730.632.883.253.303.193.403.363.323.431.373.51

9.429.19

15.358.635.988.117.607.659.28

13.5911.132.989.716.606.98

12.9911.806.656.687.447.957.07

546680249514

0671153290367613513640365521693217

0466583683464

0

1.121.400.511.060.001.380.320.600.761.261.051.320.751.071.430.450.000.961.201.400.950.00

5.234.06

-8.914.151.848.862.513.843.99

11.324.468.583.045.951.767.77NA

3.394.051.592.78NA



14

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)National Money Mart Accellent Inc Sr SecStone Energy Corp SrSquaretwo Finl Corp C&S Group EnterpriseLantheus Medical ImaFidelity Natl InformToys R US Ppty Co I International Lease Tpc Group Llc Sr SecHexion U S Fin Corp Exide Technologies SSeverstal Columbus EWind Acquisition FinAleris Intl Inc Sr NMantech Intl Corp SrCco Hldgs Llc / Cco Kemet Corp Sr Nt 10.Kemet Corp Sr Nt 144Ipayment Inc Sr Pik Berry Plastics Corp Ipayment Inc Sr Nt 1

10.388.388.63

11.638.389.757.63

10.758.888.258.888.63

10.257.257.637.257.88

10.5010.5010.259.50

10.25

12/15/16 2/01/17 2/01/17 4/01/17 5/01/17 5/15/17 7/15/17 7/15/17 9/01/1710/01/17 2/01/18 2/01/18 2/15/18 2/15/18 2/15/18 4/15/18 4/30/18 5/01/18 5/01/18 5/15/18 5/15/18 5/15/18

650750650525475650

0600500600350500550300275

0625686

00

250625

525300650525427400200375500600350

0550300

0400475361200500250

0

B2B1

Caa1B2B1

Caa1Ba2B3B1B1B3B2B3

Ba3B1

Ba2B1B2B2B3

Caa1B3

B+B+

BB

BB-B+

BB+B+

BBB-B+

CCC+BB

BBB+

BB+BB-B+NR

CCC+CCC

CCC+

12/15/16 2/01/17 2/01/17 4/01/17 5/01/17 5/15/17 7/15/17 7/15/17 9/01/1710/01/16 2/01/18 2/01/18 2/15/18 2/15/18 2/15/18 4/15/18 4/30/18 5/01/18 5/01/18 5/15/18 5/15/18 5/15/18

3.653.863.873.493.993.704.313.974.313.664.454.154.354.524.654.734.694.324.324.184.474.43

7.678.247.49

11.907.12

12.515.538.486.337.888.11

14.428.708.468.155.956.278.778.88

12.138.23

11.91

580302679520449359219411558629362

0589284

0426513390215460265

0

1.190.621.401.070.920.740.450.841.151.290.750.001.210.580.000.881.060.800.440.950.550.00

5.944.694.565.601.75

16.32NA

2.579.876.81

12.7711.574.595.849.26NA

3.144.61NANA

7.84NA



15

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Thompson Creek MetalDave & Busters Inc SXerium Technologies Kinove German BondcoSpectrum Brands Inc Spectrum Brands Inc Energysolutions Inc/Chemtura Corp Sr Nt Exco Resources Inc SAlere Inc Sr Sb Nt8.Carrizo Oil & Co IncTenet Healthcare CorDavita Inc Sr Nt 6.3Speedway MotorsportsBi-Lo Llc / Bi-Lo FiPerry Ellis Intl IncLinn Energy Llc Sr NLevel 3 Escrow Inc SSuncoke Energy Inc SReynolds Group IssueReynolds Group IssueSpectrum Brands Inc

7.38

11.008.889.639.509.50

10.757.887.508.638.636.256.386.759.257.886.508.137.637.889.88

12.00

6/01/18 6/01/18 6/15/18 6/15/18 6/15/18 6/15/18 8/15/18 9/01/18 9/15/1810/01/1810/15/1811/01/1811/01/18 2/01/19 2/15/19 4/01/19 5/15/19 7/01/19 8/01/19 8/15/19 8/15/19 8/28/19

200225425400

0250600375750350300375600325550300400500350625

0400

0

2250

400350250600375750

0525375

000

30000

350625150

0

B3

Caa1B3B2B1B1

Caa1B1B3B3B3B1B2

Ba2B2B2B2B3B1

Ba3Caa1

B3

B

CCC+BBBB

BB-BB-

B-B-B

BB-B

BBB

B+B

CCCB+

BB-B-

CCC+

6/01/18 6/01/18 6/15/18 6/15/18 6/15/18 6/15/18 8/15/18 9/01/18 9/15/1810/01/1810/15/1811/01/1811/01/18 2/01/19 2/15/19 4/01/19 5/15/19 7/01/19 8/01/19 8/15/19 8/15/19 2/28/15

4.864.324.684.514.634.634.505.014.884.904.795.245.435.414.995.085.715.255.495.545.102.56

9.729.47

10.968.776.936.93

10.046.439.848.927.595.655.956.578.677.976.638.407.136.579.44

11.63

0

2410

416395282620403668

0553387

000

29900

360672153

0

0.000.500.000.860.810.581.270.831.370.001.140.800.000.000.000.610.000.000.741.380.320.00

6.578.13NA

12.01NA

5.2613.156.28

-3.847.276.343.013.884.64NA

4.070.386.884.664.75NANA



16

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Linn Energy Llc Sr NChesapeake Oilfield Reliance IntermediatUnited Rentals NorthServicemaster Co Sr Hca Inc Sr Sec Nt 6.Solutia Inc Sr Nt 7.United States Stl CoAlliance Data SystemViasat Inc Sr Nt 144Spirit Aerosystems ILimited Brands Inc SUnit Corp Sr Sbnt 6.Eh Hldg Corp Sr Nt 1Csc Hldgs Inc Sr Nt Sesi L L C Sr Nt 144International Lease Fresenius Med Care UFidelity Natl InformFmg Resources AugustAmerigas Fin Corp /

6.256.639.509.258.006.507.887.386.386.886.756.636.637.636.757.138.635.885.006.887.00

11/01/1911/15/1912/15/1912/15/19 2/15/20 2/15/20 3/15/20 4/01/20 4/01/20 6/15/2012/15/20 4/01/21 5/15/21 6/15/2111/15/2112/15/21 1/15/22 1/31/22 3/15/22 4/01/22 5/20/22

0

475475400

0400175650

00

250345650200650300150

0000

350475475

0375400

0650400525250300650

0650300150450300275425

B2

Ba3Ba2B3B3

Ba3B1B1NRB1

Ba3Ba1B3B3

Ba3Ba3B1

Ba2Ba2B1

Ba2

B

BB+BB-

BB-

BBBB-BBNRB+

BB-BB+BB-

B-BB

BB+BBB-BB+BB+BB-BB

11/01/1911/15/1912/15/1912/15/19 2/15/20 2/15/20 3/15/20 4/01/20 4/01/20 6/15/2012/15/20 4/01/21 5/15/21 6/15/2111/15/2112/15/21 1/15/22 1/31/22 3/15/22 4/01/2211/20/19

5.885.725.375.575.776.075.945.756.186.166.476.576.596.666.836.866.527.297.677.016.20

6.766.757.678.426.915.706.487.046.106.485.545.446.306.906.176.027.025.515.197.236.94

340471525

0399420

0663407538271325665

0677324167462296268434

32,270

0.700.971.080.000.820.860.001.360.841.110.560.671.370.001.390.670.340.950.610.550.89

66.39

NA

-2.976.497.46NA

2.779.636.51NANA

5.203.803.91NA

0.544.55

12.02NANANANA



17

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

MiscellaneousCash Equivalents Fgi Holding Co Inc SExpress Llc/Express Kinetic Concepts IncAudatex North AmericReynolds Group IssueHughes Satellite Sys TransportationHorizon Lines L L C Marquette Transn Co General Maritime CorEnergy Xxi Gulf CoasIron Mtn Inc Del Sr Delta Pass-Through T UtilitiesItc Deltacom Inc Sr Intelsat Jackson HldGeoeye Inc Sr Sec 8.Paetec Holding Corp Cequel Communication

0.25

11.258.757.006.759.887.63

11.0010.8812.009.257.758.02

10.509.508.638.888.63

4/01/1210/01/15 3/01/18 5/04/18 6/15/18 8/15/19 6/15/21

10/15/16 1/15/1711/15/1712/15/1710/01/19 2/10/24

4/01/16 6/15/1610/01/16 6/30/1711/15/17

2,607

515750

0500175

0

575300675600450645

575465325500

0

1,214

0750499225

0200

575300675600325611

375465

0500625

AaaNRBa3Ba2Ba2

Caa1B3

B2B3Ca

Caa1B1

Ba2

B1B3B3

Ba3B3

AAA

B-BBNR

BB-B-

NR

BB-DB

B+BB

B-B

B-BB-

B-

4/01/1210/01/15 3/01/18 5/04/18 6/15/18 8/15/19 6/15/21

10/15/16 1/15/1711/15/1712/15/1710/01/19 2/10/15

4/01/16 6/15/1610/01/16 6/30/1711/15/13

0.012.894.624.774.965.006.47

3.293.630.134.335.500.59

3.093.353.784.121.95

0.25

12.446.536.575.68

10.456.49

11.729.45NA

7.456.197.30

8.998.217.856.917.49

1,214

0831509237

0216

3,007

56131616

650355623

2,520

394486

0543671

2.500.001.711.050.490.000.446.19

1.150.650.031.340.731.285.18

0.811.000.001.121.38

NA

6.114.33NA

6.137.96NA

3.087.29

51.431.905.275.87

5.262.273.062.52NA



18

Name

Coupon

Maturity

Quantity12/31/11 3/31/12

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Utilities (cont.)Clear Channel Ww HldLevel 3 Fing Inc GtdHolly Energy PartnerAtlas Pipeline PartnRegency Energy PartnDish Dbs Corp Sr Nt Sprint Nextel Corp GClear Channel Ww HldLevel 3 Fing Inc GtdEnergy Transfer EquiCopano Energy L L C Regency Energy PartnEquinix Inc Sr Nt 7% Total Portfolio

9.25

10.008.258.756.887.887.007.638.637.507.136.507.00

12/15/17 2/01/18 3/15/18 6/15/1812/01/18 9/01/19 3/01/20 3/15/20 7/15/2010/15/20 4/01/21 7/15/21 7/15/21

534

0550250275625

000

4750

525250

0

450550

00

625225475200

0475

00

B2B3B1B3B1

Ba2Ba3B3B3

Ba2B1B1

Ba2

B

CCCBB-NR

BB-BB-BB-

BCCCBB-B+

BB-BB-

12/15/17 2/01/18 3/15/1812/15/1512/01/18 9/01/19 3/01/20 3/15/20 1/15/1810/15/20 4/01/21 7/15/21 7/15/21

4.564.374.673.505.475.675.955.804.896.366.386.796.71

7.667.937.007.745.775.396.757.978.076.126.355.946.23

0

493583

00

719228466210

0500

00

5,292

0.001.011.200.000.001.480.470.960.430.001.030.000.00

10.89

3.66NA

2.92NA

1.153.51NANANA

3.32NA

3.495.69

5.07

Tacoma Employees’ Retirement SystemFund Return Table

TIPS CompositeQuarter Ended 3/31/12

1


3/31/02Inception

DateInception

ReturnBlackRock US TIPS Index Fund Barclays U.S. TIPS

TIPS Composite Barclays U.S. TIPS

Indices Barclays U.S. TIPS

0.840.86

0.840.86

0.86

3.493.57

3.493.57

3.57

8.588.25

8.588.25

8.25 12.20 8.74 7.60 7.51

6/30/11 6/30/11

6/30/11 6/30/11

Since 6/30/11

8.588.25

8.588.25

8.25


Active TIPS PortfoliosPeriods Ended 3/31/12

2

0%

2%

4%

6%

8%

10%

12%

14%

16%

ta

t

a

t

a

t

a

t

a

t

at

a

t

a

Med75th95th

25th

5th

Rat

e of

Ret

urn

TIPS Composite t Barclays U.S. TIPS a Barclays Aggregate MedianNumber of Funds


0.84 (71)0.86 (68)

0.30 (100)

0.9545

3.49 (48)3.57 (33)

1.43 (100)

3.4845

8.58 (28)8.25 (53)5.30 (75)

8.30

45

12.20 (42)7.72 (91)

12.02

45

10.04 (43)6.41 (93)

9.78

44

8.74 (58)6.84 (90)

8.78

41

7.60 (60)6.25 (97)

7.69

38

7.51 (90)

5.80 (100)

7.6111




3

Yie

ld

0.0 5.0 10.0 15.0 20.0 25.0 30.0-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

ta


1.00 5.00 10.00 15.00 20.00 25.00

0.23 0.81 2.19 2.98 3.38 3.52

Description Legend Yrs to Mat YieldTIPS CompositeBarclays U.S. TIPSBarclays Aggregate

ta

9.19 9.12 7.10

1.74 1.93 2.22

Tacoma Employees’ Retirement SystemFixed Income Fund Structural Characteristics

TIPS CompositeQuarter Ended 3/31/12

4

Manager $(MIL)#

BondEffective Maturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTLBlackRock US TIPS Index FundTIPS Composite

Barclays U.S. TIPSBarclays Aggregate

25.925.9

753,475.016,113,100.0

3333

337,929

0.00.0

0.00.0

69.269.2

70.187.6

23.323.3

22.83.3

7.57.5

7.29.2

GOVGOV

AAAAA

00

07

00

03

100100

10043

00

011

00

00

00

034

00

00

00

02

Tacoma Employees’ Retirement SystemFund Fixed Income Characteristics


5

BlackRock US TIPS Index Fund TIPS Composite

A Barclays U.S. TIPSB Barclays Aggregate

Effective Duration

A B 0.0

3.0

6.0

9.0

7.71�� 7.71��

6.18��

5.00��

Years to Effective Maturity

A B 0.0

4.0

8.0

12.0

9.19�� 9.19�� 9.12��

7.10��


A B 0.0

1.0

2.0

3.0

1.74�� 1.74��1.93��

2.22��

Current Yield

A B 0.0

2.0

4.0

6.0

1.47�� 1.47�� 1.43��

3.60��


BlackRock US TIPS Index FundQuarter Ended 3/31/12

1

Val

ue

6/11 9/11 12/11 3/120.90

1.00

1.10

Val

ue

6/11 9/11 12/11 3/120.90

1.00

1.10

LegendReturn


ValueTotalBarclays U.S. TIPSBarclays Aggregate

8.588.255.30

8.588.255.30

1.091.081.05

Tacoma Employees’ Retirement SystemFund Return TableReal Estate CompositeQuarter Ended 3/31/12

1


3/31/02Inception

DateInception

ReturnAdelante Capital Mgmnt Wilshire REIT Index Wilshire REIT Index + 1%

INVESCO Core Real Estate U.S.A., LLC NCREIF Property Index

Real Estate Composite Policy Index Wilshire REIT Index

Indices Wilshire REIT Index NAREIT NCREIF Property Index Wilshire Real Est. Secs

10.7910.7911.04

1.392.59

6.076.69

10.79

10.7910.412.59

10.93

27.9627.8728.37

4.415.63

15.6116.4927.87

27.8726.475.63

28.02

9.919.159.90

6.459.11

8.049.899.15

9.157.999.118.72

14.1613.3914.39

13.7113.41

13.7014.1913.39

13.3911.1613.4112.94

43.6744.6945.69

42.2043.5344.69

44.6940.095.96

44.82

-2.69-0.670.33

-3.29-1.14-0.67

-0.67-0.522.88

-0.82

9.9110.4111.41

9.5710.1410.41

10.419.768.17

10.33

12/31/9712/31/9712/31/97

9/30/10 9/30/10

3/31/88 3/31/88 3/31/88

Since 3/31/88 3/31/88 3/31/88 3/31/88

9.259.13

10.13

14.1214.57

5.509.469.57

9.579.317.308.57


REIT Equity PortfoliosPeriods Ended 3/31/12

2

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1 2

1 2

1 2

1 2

1 2

1 2

1 2

1 2 Med75th95th

25th 5th

Rat

e of

Ret

urn

Adelante Capital Mgmnt 1 Wilshire REIT Index 2 Wilshire REIT Index + 1% MedianNumber of Funds


10.79 (49)10.79 (49)11.04 (37)

10.77

40

27.96 (57)27.87 (62)28.37 (44)

28.26

40

9.91 (39)9.15 (47)9.90 (39)

9.08

40

14.16 (39)13.39 (54)14.39 (37)

13.41

40

19.74 (41)19.05 (56)20.05 (30)

19.38

39

43.67 (54)44.69 (32)45.69 (13)

43.94

37

-2.69 (97)-0.67 (85)0.33 (77)

1.29

35

9.91 (96)10.41 (93)11.41 (57)

11.81

33



Adelante Capital MgmntQuarter Ended 3/31/12

1

Val

ue

3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/120.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Val

ue

3/98 3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/120.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

LegendReturn


ValueTotalWilshire REIT Index Wilshire REIT Index + 1%

43.6744.6945.69

9.259.13

10.13

3.533.474.00

Tacoma Employees’ Retirement SystemREIT Structural Characteristics


2

Quarter $(000)

#

Stocks

%

Cash

%

Equity

%

Other

%

REIT

Property Type Sectors %

Office

Indus-

trial Storage

Regnl

Retail

Local

Retail

Factory

Outlet Apts

Mfg.

Housing

Health

Care Hotel

Diver-

sified Other

03/31/9806/30/9809/30/9812/31/9803/31/9906/30/9909/30/9912/31/9903/31/0006/30/0009/30/0012/31/0003/31/0106/30/0109/30/0112/31/0103/31/0206/30/0209/30/0212/31/0203/31/0306/30/03*Index

34,22743,54248,80359,52866,25281,99276,00790,52294,586

105,636116,733121,186118,390130,031130,767135,504139,129114,602105,45994,77596,357

107,090390,624

3232283235363637353129302929322828293030283298

43362304343674264323720

09797949897

100969796979493969894969798989398

100

960000000000000000000000

0939697979796989898

100100100979797979797

10096

100100

0.019.424.424.024.227.429.829.430.131.633.834.131.933.034.832.929.925.123.523.222.718.78.9

0.00.00.00.00.00.50.50.10.00.00.00.40.82.12.41.91.92.23.13.14.74.33.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.05.6

0.013.311.313.714.613.112.411.911.813.514.810.29.69.39.19.1

11.713.414.014.218.018.015.6

0.01.11.91.25.05.75.64.44.73.82.72.61.41.32.42.83.24.04.24.55.06.55.1

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.028.722.529.929.526.526.828.428.728.224.628.028.429.730.734.228.227.126.927.125.023.715.2

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.3

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.03.8

0.011.69.05.24.44.13.02.32.31.92.12.32.01.62.90.00.00.00.00.00.00.05.2

0.023.428.121.720.321.120.322.221.520.621.922.425.923.017.619.119.321.819.318.818.617.15.5

0.02.42.74.31.91.61.71.31.00.40.00.00.00.00.00.05.86.49.09.06.0

11.831.3

Index : Wilshire REIT Index



3

Quarter $(000)

#

Stocks

%

Cash

%

Equity

%

Other

%

REIT


Office

Indus-

trial Storage

Regnl

Retail

Local

Retail

Factory

Outlet Apts

Mfg.

Housing

Health

Care Hotel

Diver-

sified Other

09/30/0312/31/0303/31/0406/30/0409/30/0412/31/0403/31/0506/30/0509/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/08*Index

117,524121,467137,170131,462141,525137,458125,604147,768134,185139,476162,391151,334159,683175,569182,388159,261162,285139,575141,734134,035130,31776,813

390,624

3128272627272827282927303028262625252833333798

34239224334303314342730

979698979198989697979697

100979799969796989397

100

00000000000000000000000

94100100100100100999997

10010010010010010088

100100100100100100100

17.016.413.514.417.119.320.219.720.517.919.113.314.114.614.315.812.613.513.714.513.514.78.9

4.64.24.14.04.04.14.12.35.36.55.45.65.54.84.24.6

13.413.812.913.613.310.23.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.04.05.6

20.120.322.920.819.419.218.820.720.019.217.617.517.920.922.923.821.622.123.723.623.215.415.6

7.68.08.48.18.79.09.29.3

10.79.88.08.56.92.33.03.43.63.94.65.25.57.05.1

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

27.627.625.227.526.327.224.926.727.026.226.928.627.424.822.625.220.420.419.918.922.121.515.2

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.3

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.03.23.8

0.00.00.00.00.00.00.00.00.01.32.30.81.32.93.25.15.14.83.83.22.62.35.2

16.715.916.315.514.513.513.613.814.714.914.115.215.716.414.716.27.88.37.67.17.17.85.5

6.37.59.59.6

10.07.69.27.51.84.16.6

10.611.313.315.25.9

15.613.213.913.912.614.031.3




4

Quarter $(000)

#

Stocks

%

Cash

%

Equity

%

Other

%

REIT


Office

Indus-

trial Storage

Regnl

Retail

Local

Retail

Factory

Outlet Apts

Mfg.

Housing

Health

Care Hotel

Diver-

sified Other

03/31/0906/30/0909/30/0912/31/0903/31/1006/30/1009/30/1012/31/1003/31/1106/30/1109/30/1112/31/1103/31/12

*Index

39,29651,94767,90973,90481,63479,69590,45646,42049,53351,50644,29149,01551,195

390,624

36363939373737353838353536

98

134355

54354455

0

99979697959546979596969595

100

0000000000000 100

0

100100100100100100100100100100100100

100

12.113.114.014.312.614.113.613.313.914.112.712.812.9

8.9

9.49.6

10.310.99.89.19.48.06.80.10.01.11.8

3.5

6.77.05.95.86.05.95.85.65.65.66.36.26.3

5.6

13.415.315.314.514.816.316.614.815.115.717.217.720.3

15.6

7.16.55.34.94.74.84.65.23.74.14.61.71.6

5.1

0.00.00.00.00.00.00.00.00.00.00.00.00.0

0.0

21.518.317.616.717.218.318.119.118.218.619.519.221.8

15.2

0.00.00.00.00.00.00.00.00.00.00.00.00.0

0.3

4.24.07.17.36.96.33.93.43.82.53.03.94.8

3.8

1.41.71.72.42.92.92.74.24.61.71.61.61.7

5.2

6.46.85.15.05.96.06.56.56.46.65.75.14.0

5.5

17.917.817.618.219.016.318.919.821.831.029.430.624.9

31.3


Tacoma Employees’ Retirement SystemREIT Investment Characteristics


5

QuarterGrowth

5 Yrs Earn 5 Yrs DivAverage $


P/E P/B YLD ROERisk

Beta Debt/Eqt R Square03/31/9806/30/9809/30/9812/31/9803/31/9906/30/9909/30/9912/31/9903/31/0006/30/0009/30/0012/31/0003/31/0106/30/0109/30/0112/31/0103/31/0206/30/0209/30/0212/31/0203/31/0306/30/03Wilshire REIT Index

-0.88.02.6

-5.4-4.8-4.3-2.3-1.3-1.3-0.2-2.3-0.70.2

-0.1-1.8-0.9-1.0-0.2-0.00.22.51.8

-2.2

-1.03.22.3

-0.8-0.5-0.9-0.50.40.60.80.81.11.71.21.01.61.73.43.23.13.33.4

-4.3

2,0512,2771,6741,7941,7401,9381,8311,9852,0672,5152,9013,1452,9083,3023,9513,9074,3383,8543,5223,4183,4023,509

13,466

NA12.111.010.49.4

11.210.610.711.011.99.8

10.09.6

10.210.010.010.511.210.19.79.7

11.4-19.5

27.73.64.43.23.52.92.41.81.82.02.11.82.12.32.02.42.22.82.72.73.12.42.4

5.05.36.47.67.36.77.57.57.46.86.46.56.86.36.66.66.36.16.87.06.76.03.4

19.94.03.15.26.06.98.03.82.11.2

-1.8-2.8-2.9-4.2-3.7-9.0-8.8-4.0-3.0-2.51.40.25.1

1.391.471.681.530.470.470.530.250.240.230.150.220.240.200.290.220.240.280.320.250.260.251.42

0.560.540.490.450.440.410.400.390.360.320.310.310.270.300.350.200.190.190.200.190.170.181.55

0.070.070.170.150.180.140.170.170.190.160.060.060.070.060.060.060.070.060.070.050.050.120.57




6

QuarterGrowth



P/E P/B YLD ROERisk

Beta Debt/Eqt R Square09/30/0312/31/0303/31/0406/30/0409/30/0412/31/0403/31/0506/30/0509/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/08Wilshire REIT Index

0.40.35.04.75.44.94.64.74.44.76.23.31.7

-1.85.41.92.52.24.46.15.75.0

-2.2

3.03.31.51.41.51.31.41.51.71.82.11.80.65.10.57.77.27.38.38.07.26.9

-4.3

3,7713,9074,3474,0614,1315,1594,6895,5586,2276,5567,6107,7728,628

10,18810,9189,785

10,1848,3458,5067,8847,7194,795

13,466

11.913.314.613.814.516.514.416.316.917.313.519.521.122.085.657.451.941.448.351.550.137.6

-19.5

2.72.92.82.62.73.12.93.22.83.03.23.23.64.23.53.53.52.92.62.52.41.42.4

5.55.34.85.14.84.24.74.03.93.73.33.33.02.82.83.13.13.94.04.34.76.03.4

-0.8-1.110.19.9

10.210.19.89.66.76.86.97.27.27.49.2

11.311.110.811.012.312.312.65.1

0.170.190.210.250.250.270.320.310.390.400.390.480.500.500.540.620.661.111.031.171.111.491.42

0.150.150.250.260.280.260.250.340.550.350.360.430.301.200.471.181.191.201.241.201.221.171.55

0.030.040.040.030.020.030.030.030.070.090.110.140.160.170.190.180.140.350.320.420.390.540.57




7

QuarterGrowth



P/E P/B YLD ROERisk

Beta Debt/Eqt R Square03/31/0906/30/0909/30/0912/31/0903/31/1006/30/1009/30/1012/31/1003/31/1106/30/1109/30/1112/31/1103/31/12

Wilshire REIT Index

1.21.41.01.3

-1.6-2.5-2.6-5.3-6.2-5.1-4.6-5.0-5.2

-2.2

5.85.45.25.23.43.23.4

-0.6-2.7-2.3-2.1-2.2-2.5

-4.3

3,4415,1186,5287,2518,1908,2169,390

10,37411,18312,43811,47013,21414,653

13,466

28.933.159.3NM80.468.3NMNMNMNM39.140.159.7

-19.5

0.91.41.81.92.54.14.62.42.22.52.12.83.0

2.4

9.16.04.54.13.63.73.33.22.92.93.53.33.0

3.4

11.710.08.98.86.86.26.24.04.86.66.86.75.5

5.1

1.461.531.521.541.531.511.451.431.451.441.431.441.42

1.42

1.201.091.141.150.870.420.431.191.161.221.201.221.21

1.55

0.520.570.590.600.590.590.560.570.570.550.560.570.57

0.57


Tacoma Employees’ Retirement SystemREIT Return Analysis


8

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total03/9806/9809/9812/98199803/9906/9909/9912/99199903/0006/0009/0012/00200003/0106/0109/0112/01200103/0206/0209/0212/02

-1.00-4.17

-10.63-2.11

-17.01-4.1010.56-8.270.16

-2.583.00

11.209.354.63

31.04-1.0310.90-2.404.88

12.358.374.61

-9.080.50

0.07-2.60

-10.220.64

-11.93-5.8612.51-7.300.95

-0.894.49

11.4410.273.60

33.03-2.519.600.353.41

10.876.444.83

-7.981.10

0.07-2.60

-10.220.64

-11.93-5.8612.51-7.300.95

-0.894.49

11.4410.273.60

33.03-2.519.600.353.41

10.876.444.83

-7.981.10

0.000.000.000.000.000.000.00

-0.000.000.000.00

-0.00-0.000.000.000.000.000.000.000.00

-0.00-0.01-0.00-0.00

NANA

0.450.37NA

0.650.070.510.641.930.460.630.960.032.59

-1.97-0.181.56

-1.55-2.36-1.69-0.12-0.13-0.13

NANA

0.711.16NA

-2.782.970.530.480.751.430.121.10

-0.073.210.45

-0.611.610.562.360.250.270.480.35

NANA

-0.751.22NA

0.37-1.10-0.06-0.34-0.98-0.40-0.51-1.15-0.99-3.810.03

-0.52-0.42-0.48-1.48-0.490.070.750.38

1.071.570.412.755.08

-1.761.940.970.781.701.490.240.92

-1.031.98

-1.49-1.302.75

-1.47-1.48-1.930.221.100.60

Index* : Wilshire REIT Index



9

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total200203/0306/0309/0312/03200303/0406/0409/0412/04200403/0506/0509/0512/05200503/0606/0609/0612/06200603/0706/0709/07

3.581.26

12.109.939.13

36.1812.09-5.418.28

15.9933.16-7.3015.223.942.52

13.8215.79-1.129.118.85

35.973.74

-9.361.42

3.801.67

11.029.629.40

35.3512.79-4.327.54

16.6935.42-8.7517.444.323.76

16.0016.22-0.708.319.72

37.153.67

-8.641.69

3.811.67

11.029.629.40

35.3512.79-4.327.54

16.6935.42-8.7517.444.323.76

16.0016.22-0.708.319.72

37.153.67

-8.641.69

-0.00-0.00-0.000.00

-0.000.00

-0.000.000.00

-0.000.000.000.00

-0.00-0.00-0.00-0.00-0.000.00

-0.00-0.00-0.000.00

-0.00

-2.020.81

-0.74-0.14-0.18-0.20-0.320.320.15

-0.39-0.19-0.710.82

-0.27-0.21-0.630.380.250.44

-0.570.64

-0.090.73

-0.76

1.41-0.910.300.081.721.371.760.60

-0.711.463.76

-1.832.280.891.732.860.640.27

-0.881.982.490.600.071.46

0.840.51

-0.65-0.25-1.28-2.00-0.740.17

-0.18-0.36-1.301.09

-0.88-0.24-0.28-0.05-0.58-0.10-0.36-0.54-1.96-0.58-0.08-0.42

0.220.41

-1.09-0.310.27

-0.830.701.09

-0.740.702.26

-1.442.220.371.232.180.430.43

-0.800.871.17

-0.070.730.27




10

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total12/07200703/0806/0809/0812/08200803/0906/0909/0912/09200903/1006/1009/1012/10201003/1106/1109/1112/11201103/12

-13.54-17.55

2.14-5.394.78

-39.95-39.20-33.9231.6635.429.15

28.609.82

-4.2313.357.87

28.606.733.88

-14.6415.429.24

10.79

-14.16-17.32

1.34-5.58-2.88

-41.13-45.29-32.5532.0530.598.71

26.4310.34-2.4913.386.59

30.026.593.87

-14.1115.509.83

10.79

-14.16-17.32

1.34-5.58-2.88

-41.13-45.29-32.5532.0530.598.71

26.4310.34-2.4913.386.59

30.026.593.87

-14.1115.509.83

10.79

0.000.00

-0.00-0.00-0.000.00

-0.000.00

-0.00-0.000.000.000.00

-0.000.00

-0.000.000.000.000.000.000.00

-0.00

-0.99-0.98-0.370.70

-2.34-3.48-4.35-0.400.110.240.410.06

-0.660.480.160.080.160.300.490.43

-0.361.05

-0.42

-0.920.84

-1.25-1.21-4.420.62

-3.431.181.21

-2.91-0.60-0.051.160.980.39

-0.971.96

-0.11-0.17-0.201.030.420.21

1.290.380.820.32

-0.901.691.690.59

-0.94-2.16-0.25-2.180.020.28

-0.52-0.39-0.69-0.34-0.330.30

-0.59-0.880.22

-0.610.23

-0.79-0.20-7.66-1.18-6.091.370.39

-4.83-0.44-2.170.521.740.03

-1.291.42

-0.14-0.020.530.080.590.00




11

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total

FromInceptionFrom 06/98To PresentAvg UpMarketsAvg DownMarkets

9.13

9.89

9.17

-9.35

9.25

9.80

8.93

-8.83

9.25

9.80

8.93

-8.83

-0.00

-0.00

-0.00

0.00

-0.64 1.12 -0.57

0.12

-0.09

-0.24

0.52Index* : Wilshire REIT Index

Tacoma Employees’ Retirement SystemREIT Sector Attribution Analysis


12

SectorPortfolio

Mkt Val % ReturnWilshire REIT Index


Stock Sector TotalOtherRegional RetailApartmentsHotelFactory OutletDiversifiedMfg. HousingStorageHealth CareIndustrialLocal RetailOfficeQuarter Total

30.5817.7119.241.640.005.120.006.233.911.051.71

12.82100.00

10.9615.019.56

16.68

10.48

3.632.10

23.3615.148.46

10.56

31.2415.1815.505.250.005.600.216.043.813.234.769.19

100.00

10.2114.818.73

11.85

10.6718.614.444.87

19.2315.849.69

10.79

0.230.040.160.080.00

-0.010.00

-0.05-0.110.04

-0.01-0.160.21

0.000.10

-0.08-0.04-0.000.00

-0.02-0.01-0.01-0.18-0.15-0.04-0.42

0.230.140.080.040.00

-0.01-0.02-0.06-0.11-0.14-0.17-0.20-0.21





13


Simon Ppty Group IncEquity Residential PBoston Properties InPublic Storage IncAvalonbay Cmntys IncPrologis IncHealth Care Reit IncHcp IncVornado Rlty TrVentas Inc

12.26.65.95.74.94.74.33.93.73.3

5,9263,2032,8632,7772,3862,2712,0941,9101,7761,610


Coresite Rlty CorpMarriott Intl Inc NePrologis IncKilroy Rlty CorpCbl & Assoc Pptys InDdr CorpExtra Space StorageRegency Ctrs CorpTaubman Ctrs IncStarwood Hotels&Reso

0.93.14.71.61.42.11.62.11.71.5

33.3830.1327.0423.3621.9120.9619.7019.5118.2417.59


Hcp IncHealth Care Reit IncAssociated Estates RPublic Storage IncVentas IncEquity Lifestyle PptBoston Properties InAlexandria Real EstaAmerican Campus CmntPost Pptys Inc

3.94.31.05.73.33.25.92.91.42.5

-3.602.103.543.634.735.245.976.757.417.70


1st2nd3rd4th


77.915.02.84.3

3,956,9911,977,523

907,220

30.359.610.1

0.0

57.232.4

-43.1

8.312.731.947.1

5.03.82.7

Wilshire REIT Index

Tacoma Employees’ Retirement SystemEquity Portfolio Activity


14

AdditionsSecurity Name Quantity $(000) New

DeletionsSecurity Name Quantity $(000) Eliminated

General Growth PptysDupont Fabros TechnoRegency Ctrs CorpHealth Care Reit IncKilroy Rlty CorpVentas IncDiamondrock HospitalEquity Residential PMacerich CoPost Pptys Inc

37,70015,8006,7004,8004,0001,6007,5201,2001,200

100

641386298264186917775695

**

*

Vornado Rlty Tr Simon Ppty Group IncMarriott Intl Inc NePrologis Inc Corporate Office PptHcp Inc Sl Green Rlty Corp Saul Ctrs Inc Boston Properties InPublic Storage Inc Summit Hotel Pptys ICoresite Rlty Corp Lasalle Hotel Pptys American Campus CmntStarwood Hotels&ResoDdr Corp Taubman Ctrs Inc Equity Lifestyle PptEssex Ppty Tr Inc Extra Space Storage Alexandria Real EstaApartment Invt & MgmHersha Hospitality TAmerican Assets Tr IAssociated Estates R

9,8002,600

10,0008,830

11,7006,5002,9005,5001,9001,400

20,0007,8005,7003,0002,1008,1001,6001,600

7003,3001,0002,1007,8001,8002,300

825379378318272256225222199193189184160134118118117112106957355434138

*

Tacoma Employees’ Retirement SystemEquity Portfolio Activity


15

AdditionsSecurity Name Quantity $(000) New

DeletionsSecurity Name Quantity $(000) Eliminated

Cbl & Assoc Pptys InAvalonbay Cmntys Inc

1,800200

3428

Tacoma Employees’ Retirement SystemREIT Holdings


16

NameShares

12/31/11 3/31/12Price

12/31/11 3/31/12Mkt Value $(000)

12/31/11 3/31/12% Portfolio

12/31/11 3/31/12Buy & Hold

ReturnApartmentsApartment Invt & MgmAssociated Estates RAvalonbay Cmntys IncEquity Residential PEssex Ppty Tr IncPost Pptys Inc

DiversifiedVornado Rlty Tr

HotelLasalle Hotel Pptys

IndustrialKilroy Rlty Corp

OfficeAlexandria Real EstaBoston Properties InCorporate Office PptSl Green Rlty Corp

36,10033,10017,08249,9509,645

25,996

30,896

31,500

12,800

20,50029,17028,73615,260

34,00030,80016,88251,1508,945

26,096

21,096

25,800

16,800

19,50027,27017,03612,360

22.91015.950

130.60057.030

140.51043.720

76.860

24.210

38.070

68.97099.60021.26066.640

26.41016.340

141.35062.620

151.51046.860

84.200

28.140

46.610

73.130104.99023.21077.550

827528

2,2312,8491,3551,1378,926

2,3752,375

763763

487487

1,4142,905

6111,0175,947

898503

2,3863,2031,3551,2239,569

1,7761,776

726726

783783

1,4262,863

395959

5,643

1.81.14.86.12.92.4

19.2

5.15.1

1.61.6

1.11.1

3.06.31.32.2

12.8

1.91.04.96.62.82.5

21.8

3.74.0

1.51.7

1.61.8

2.95.90.82.0

12.9

16.113.548.99

10.428.637.709.56

10.4810.48

16.6816.68

23.3623.36

6.755.97

10.4916.758.46



17

NameShares

12/31/11 3/31/12Price

12/31/11 3/31/12Mkt Value $(000)

12/31/11 3/31/12% Portfolio

12/31/11 3/31/12Buy & Hold

ReturnLocal RetailKimco Realty CorpSaul Ctrs Inc

Regional RetailCbl & Assoc Pptys InMacerich CoSimon Ppty Group IncTaubman Ctrs Inc

StoragePublic Storage Inc

Health CareHealth Care Reit Inc

OtherAmerican Assets Tr IAmerican Campus CmntCoresite Rlty CorpDdr CorpDiamondrock HospitalDupont Fabros Techno

022,354

36,72324,53143,27513,220

21,500

33,300

21,80018,50027,22878,200

00

016,854

34,92325,73140,67511,620

20,100

38,100

20,00015,50019,42870,1007,520

15,800

16.24035.420

15.70050.600

128.94062.100

134.460

54.530

20.51041.96017.82012.1709.640

24.220

19.26040.360

18.92057.750

145.68072.950

138.170

54.960

22.80044.72023.59014.60010.29024.450

0792792

5771,2415,580

8218,219

2,8912,891

1,8161,816

447776485952

00

0680680

6611,4865,926

8488,920

2,7772,777

2,0942,094

456693458

1,02377

386

0.01.71.7

1.22.7

12.01.8

17.7

6.26.2

3.93.9

1.01.71.02.10.00.0

0.01.41.6

1.43.1

12.21.7

20.3

5.76.3

4.34.8

0.91.40.92.10.20.8

18.6015.1415.14

21.9115.2613.7718.2415.01

3.633.63

2.102.10

12.217.41

33.3820.96

NANA



18

NameShares

12/31/11 3/31/12Price

12/31/11 3/31/12Mkt Value $(000)

12/31/11 3/31/12% Portfolio

12/31/11 3/31/12Buy & Hold

ReturnOther (cont.)Equity Lifestyle PptExtra Space StorageGeneral Growth PptysHcp IncHersha Hospitality TMarriott Intl Inc NePrologis IncRegency Ctrs CorpStarwood Hotels&ResoSummit Hotel Pptys IVentas Inc

23,73129,800

054,90096,58249,70071,87816,30014,69020,00026,600

22,13126,50037,70048,40088,78239,70063,04823,00012,590

028,200

66.69024.23015.02041.4304.880

29.17028.59037.62047.9709.440

55.130

69.74028.79016.99039.4605.460

37.85036.02044.48056.4107.580

57.100

1,583722

02,275

4711,4502,055

613705189

1,46614,189

1,543763641

1,910485

1,5032,2711,023

7100

1,61015,553

3.41.60.04.91.03.14.41.31.50.43.2

30.6

3.21.61.33.91.03.14.72.11.50.03.3

32.1

5.2419.70

NA-3.6013.1230.1327.0419.5117.59

-18.794.73

13.73


1

Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years

10 YearsInception

DateInception

ReturnNTGI S&P 500 Standard & Poor’s 500

Hamilton Lane Fund VII (Series A)

Hamilton Lane Fund VII (Series B)

HarbourVest Dover Street VII

HarbourVest Int’l Private Equity VI

HarbourVest IX-Venture Fund

HarbourVest IX-Buyout Fund

HarbourVest IX-Credit Opp Fund

Pantheon Global Secondary Fund IV

Private Equity Composite Private Equity Custom Benchmark

12.5812.58

-1.09

-1.72

0.76

-0.87

-1.20

1.17

7.13

-1.89

9.2912.70

25.9225.88

-11.59

-13.63

1.10

-7.70

1.52

-26.13

11.26

-11.79

18.4118.95

8.488.43

-8.08

-11.17

9.29

-10.58

10.24

7.195.98

8.588.53

-8.36

-12.26

16.25

-8.50

21.81

8.367.40

23.6023.41

17.50

23.7323.36

3/31/09 3/31/09

3/31/11

3/31/11

3/31/09

6/30/10

9/30/11

9/30/11

9/30/11

9/30/10

3/31/09 3/31/09

23.6023.41

-8.36

-12.26

17.50

-17.96

1.52

-26.13

11.26

30.19

23.7323.36

Tacoma Employees’ Retirement SystemFund Return TableReal Assets CompositeQuarter Ended 3/31/12

1

Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years

10 YearsInception

DateInception

ReturnTortoise MLP Alerian MLP Index

Real Assets Composite Alerian MLP Index

Indices Alerian MLP Index

2.381.97

2.381.97

1.97

20.0418.63

20.0418.63

18.63 10.36 9.55 35.77 11.86 15.99

9/30/11 9/30/11

9/30/11 9/30/11

Since 9/30/11

20.0418.63

20.0418.63

18.63


Tortoise MLPQuarter Ended 3/31/12

1

Quarter $(000)#

Stocks %

Equity %

Cash %

OtherSectors


12/31/1103/31/12

Alerian MLP Index

36,29737,251

NA

2524

NA

00

0

22

0

9898

100

100100

NA

00

NA

00

NA

00

NA

00

NA

00

NA

00

NA

00

NA

00

NA

00

NA

NANA

NAENRMATIND


CDICSTHTH


FININFTELUTL




2

QuarterGrowth



P/E P/B YLD ROERisk

Beta Debt/Eqt R Square12/31/1103/31/12

Alerian MLP Index

4.73.8

NA

10.610.5

NA

11,38112,854

NA

30.424.2

NA

3.53.4

NA

5.35.4

NA

12.712.4

NA

0.580.56

NA

1.101.13

NA

0.380.39

NA



3


Enterprise Prods ParPlains All Amern PipMagellan MidstreamWilliams Partners LKinder Morgan EnergyOneok Partners LpBuckeye Partners L PSunoco Logistics PrtEnergy Transfer PrtnTarga Resources Part

9.79.69.08.87.66.65.24.74.74.2

3,5403,4913,2853,1922,7762,4081,8851,7121,7021,530


Kinder Morgan Inc DeHolly Energy PartnerWestern Gas PartnersTarga Resources PartOiltanking PartnersEnterprise Prods ParPlains All Amern PipMarkwest Energy PartTesoro Logistics LpMagellan Midstream

2.01.73.24.20.69.79.63.10.69.0

21.2915.2513.0412.9711.2910.228.237.557.466.28


Enbridge Energy PartWilliams Partners LOneok Partners LpTc Pipelines LpKinder Morgan ManageSunoco Logistics PrtBuckeye Partners L PDcp Midstream PartneKinder Morgan EnergyRegency Energy Partn

2.98.86.61.00.04.75.21.57.64.0

-5.12-4.50-4.29-3.65-3.54-2.99-2.68-2.12-1.270.69


1st2nd3rd4th


100.00.00.00.0

100.00.00.00.0

100.00.00.00.0

Alerian MLP Index

Tacoma Employees’ Retirement SystemEquity Holdings


4

NameShares

12/31/11 3/31/12Price

12/31/11 3/31/12Mkt Value $(000)

12/31/11 3/31/12% Portfolio

12/31/11 3/31/12Buy & Hold

ReturnEnergyBuckeye Partners L PChesapeake MidstreamCopano Energy L L CCrestwood MidstreamDcp Midstream PartneEnbridge Energy PartEnergy Transfer EquiEnergy Transfer PrtnEnterprise Prods ParHolly Energy PartnerKinder Morgan EnergyKinder Morgan Inc DeKinder Morgan ManageMagellan MidstreamMarkwest Energy PartOiltanking PartnersOneok Partners LpPlains All Amern PipRegency Energy PartnSunoco Logistics PrtTarga Resources PartTc Pipelines Lp

42,07038,96026,1006,010

12,09034,60029,81533,44070,27512,30620,31519,05010,76148,53113,0006,588

44,05032,95559,08552,50028,10021,280

30,80543,86526,100

012,09034,60027,99536,28070,14510,11633,55019,050

045,40619,2056,588

44,05044,50059,08545,28236,9058,215

63.98029.00034.20031.74047.47033.19040.58045.85046.38053.81084.95032.17078.52068.88055.06027.92057.74073.45024.86039.40037.28047.430

61.18029.72035.70028.51045.84030.97040.30046.91050.47061.04082.75038.65074.63072.34058.45030.72054.67078.45024.59037.81041.47044.960

2,6921,130

893191574

1,1481,2101,5333,259

6621,726

613845

3,343716184

2,5432,4211,4692,0691,0481,009

1,8851,304

9320

5541,0721,1281,7023,540

6172,776

7360

3,2851,123

2022,4083,4911,4531,7121,530

369

7.63.22.50.51.63.23.44.39.21.94.81.72.49.42.00.57.16.84.15.82.92.8

5.23.62.60.01.52.93.14.79.71.77.62.00.09.03.10.66.69.64.04.74.21.0

-2.683.906.17

-8.70-2.12-5.120.774.21

10.2215.25-1.2721.29-3.546.287.55

11.29-4.298.230.69

-2.9912.97-3.65

Tacoma Employees’ Retirement SystemEquity Holdings


5

NameShares

12/31/11 3/31/12Price

12/31/11 3/31/12Mkt Value $(000)

12/31/11 3/31/12% Portfolio

12/31/11 3/31/12Buy & Hold

ReturnEnergy (cont.)Tesoro Logistics LpWestern Gas PartnersWilliams Partners L

6,55026,94050,100

6,55025,49556,400

32.90041.27059.990

34.97046.15056.590

2151,1123,005

35,609

2291,1773,192

36,417

0.63.18.4

100.0

0.63.28.8

100.0

7.4613.04-4.502.74

TACOMA EMPLOYEES’ RETIREMENT SYSTEM POLICIES & BENCHMARKS

TOTAL FUND POLICY Weighted Policy Return = Policy Targets x Benchmark Returns

1st Qtr 2012: 46.50% Russell Global Equity Index (1/2 Hedged Dev xUS)

9.00% ML US High Yield BB/B Constrained 2% 21.00% Barclays US Aggregate Bond 2.50% Barclays US Tips 3.00% Alerian MLP 4.00% Wilshire REIT 4.00% NCREIF Property Index 10.00% Private Equity Custom Benchmark 4th Qtr 2011: 23.00% Russell 3000

23.50% International Equity Custom Benchmark 9.00% ML US High Yield BB/B Constrained 2% 21.00% Barclays US Aggregate Bond 2.50% Barclays US Tips 3.00% Alerian MLP 4.00% Wilshire REIT 4.00% NCREIF Property Index 10.00% Private Equity Custom Benchmark

3rd Qtr 2011: 23.50% Russell 3000 23.50% International Equity Custom Benchmark

9.00% ML US High Yield BB/B Constrained 2% 23.00% Barclays US Aggregate Bond 3.00% Barclays US Tips 4.00% Wilshire REIT 4.00% NCREIF Property Index 10.00% Private Equity Custom Benchmark May 2011 to June 2011: 23.50% Russell 3000

23.50% International Equity Custom Benchmark 7.00% ML US High Yield BB/B Constrained 2% 25.00% Barclays US Aggregate Bond 3.00% Barclays US Tips 4.00% Wilshire REIT 4.00% NCREIF Property Index 10.00% Private Equity Custom Benchmark 4th Qtr 2010- April 2011: 23.50% Russell 3000 23.50% International Equity Custom Benchmark 7.00% ML US High Yield B/BB Constrained 28.00% Barclays US Aggregate Bond 4.00% Wilshire REIT

4.00% NCREIF Property Index 10.00% Private Equity Custom Benchmark 2nd Qtr – 3rd Qtr 2010 23.50% Russell 3000 23.50% International Equity Custom Benchmark 7.00% ML US High Yield B/BB Constrained 28.00% Barclays US Aggregate Bond 8.00% Wilshire REIT 10.00% Private Equity Custom Benchmark

1st Qtr 2010: 21.00% Russell 3000 21.00% International Equity Custom Benchmark 15.00% ML US High Yield B/BB Constrained 25.00% Barclays US Aggregate Bond 8.00% Wilshire REIT 10.00% Private Equity Custom Benchmark May – December 2009: 21.00% S&P 500 21.00% International Equity Custom Benchmark 15.00% ML High Yield Master II 25.00% Barclays US Aggregate Bond 8.00% Wilshire REIT 10.00% Private Equity Custom Benchmark February - April, 2009: 21.00% S&P 500 21.00% MSCI ACWI x-US (N) 15.00% ML High Yield Master II 25.00% Barclays US Aggregate Bond 8.00% Wilshire REIT 10.00% Private Equity Custom Benchmark 3rd Qtr 2006- January 2009: 40.00% S&P 500 15.00% MSCI ACWI x-US (N) 10.00% ML High Yield Master II 20.00% Barclays US Aggregate Bond 15.00% Wilshire REIT 2nd Qtr 2006: 40.00% S&P 500 15.00% MSCI ACWI x-US (N) 7.50% ML High Yield Master II 22.50% Barclays US Aggregate Bond 15.00% Wilshire REIT

1st Qtr 2006: 40.00% S&P 500 15.00% MSCI Eur/Pac 50/50 (N) 5.00% ML High Yield Master II 25.00% Barclays US Aggregate Bond 15.00% Wilshire REIT 4th Qtr 2005: 40.00% S&P 500

15.00% MSCI Eur/Pac 50/50 (N) 2.50% ML High Yield Master II

27.50% Barclays US Aggregate Bond 15.00% Wilshire REIT

1st Qtr 2003: 40.00% S&P 500 16.00% MSCI Eur/Pac 50/50 (N) 29.00% Barclays US Aggregate Bond 15.00% Wilshire REIT

1st Qtr 2001: 40.00% S&P 500 16.00% MSCI Eur/Pac 50/50 (N) 29.00% Citigroup LPF 15.00% Wilshire Real Estate Securities Index

2nd Qtr 1997: 40.00% S&P 500 16.00% MSCI Eur/Pac 50/50 (N) 29.00% Citigroup LPF 12.00% Wilshire Real Estate Securities Index 3.00% Wilshire Real Estate Fund

1st Qtr 1980: 40.00% S&P 500

16.00% MSCI Eur/Pac 50/50 (N) 29.00% Citigroup LPF 15.00% Wilshire Real Estate Fund

Actuarial Return

1st Quarter 2003 to Present = 7.75% Annually 1st Quarter 2001 to 4th Quarter 2002 = 8.00% Annually 2nd Quarter 1997 to 4th Quarter 2000 = 7.50% Annually 3rd Quarter 1979 to 1st Quarter 1997 = 7.00% Annually

Expected Return

1st Quarter 2001 to Present = 8.40% Annually

2nd Quarter 1997 to 4th Quarter 2000 = 9.10% Annually 2nd Quarter 1979 to 1st Quarter 1997 = 10.40% Annually GLOBAL EQUITY

Global Equity Benchmark = 100% Russell Global Eq Idx (1/2 Hedged Dev xUS) (1Q12 – Present)

DOMESTIC EQUITY

Domestic Equity Composite Benchmark = 100% Russell 3000 (1Q10 – 4Q11)

100% S&P 500 (4Q84 – 4Q09)

NTGI S&P 500 Composite (Lending & Non-Lending Funds) Benchmark = 100% S&P 500 (1Q91 – Present)

NTGI Large Cap Growth Benchmark = 100% Russell 1000 Growth (2Q09 – Present)

NTGI Small Cap Core Benchmark 100% Russell 2000 (1Q91 – Present)

INTECH Benchmark = 100% S&P 500 (1Q07 – Present) Performance Objective = 100% S&P 500 + 1.00% (1Q07 – Present)

Research Affiliates Benchmark = 100% S&P 500 (1Q07 – Present) Performance Objective = 100% S&P 500 + 1.00% (1Q07 – Present)

INTERNATIONAL EQUITY

International Equity Composite

Custom Benchmark = 40% MSCI EAFE Index (N) (1Q09 – 4Q11) 40% MSCI EAFE Hedged (N) 20% MSCI EM Index (N) 100% MSCI ACWI x-US (N) (2Q06 – 4Q08)

100% MSCI EAFE Index (N) (2Q88 – 1Q06)

NTGI EAFE Index Fund Benchmark = 100% MSCI EAFE Index (N) (2Q09 – Present)

NTGI EAFE Index Fund (Hedged) Benchmark = 100% MSCI EAFE Index Hedged (N) (2Q09 – Present)

NTGI Emerging Markets Index Fund Benchmark = 100% MSCI EM Index (N) (2Q09 – Present)

TT International

Benchmark = 100% MSCI EAFE Index (N) (2Q99 – Present) Performance Objective = 100% Benchmark + 2.60% (4Q04 – Present) Performance Objective = 100% Benchmark + 2.00% (2Q99 – 3Q04)

DOMESTIC FIXED

Total Fixed Income Composite

Benchmark = 64.60% Barclays US Agregate Bond (4Q2011) 7.70% Barclays US TIPS 27.70% ML US High Yield BB/B Constrained

65.71% Barclays US Agregate Bond (3Q2011)

8.57% Barclays US TIPS

25.71% ML US High Yield BB/B Constrained

71.43% Barclays US Agregate Bond (May 2011 –June 2011) 8.57% Barclays US TIPS 20.00% ML US High Yield BB/B Constrained

80.00% Barclays US Aggregate Bond (2Q10 – May 2011) 20.00% ML US High Yield BB/B Constrained 62.50% Barclays US Aggregate Bond (1Q10 – 1Q10) 37.50% ML US High Yield BB/B Constrained 62.50% Barclays US Aggregate Bond (2Q09 – 4Q09) 37.50% ML High Yield Master II

66.67% Barclays US Aggregate Bond (3Q06 – 1Q09) 33.33% ML High Yield Master II 75.00% Barclays US Aggregate Bond (2Q06 – 2Q06) 25.00% ML High Yield Master II

83.33% Barclays US Aggregate Bond (1Q06 – 1Q06) 16.67% ML High Yield Master II

91.67% Barclays US Aggregate Bond (4Q05 – 4Q05) 8.33% ML High Yield Master II

100.00% Barclays US Aggregate Bond (1Q03 – 3Q05) 100.00% Citigroup LPF (4Q81– 4Q02)

Metropolitan West

Benchmark = 100% Barclays US Aggregate Bond (2Q02 – Present)

Performance Objective = 100% Benchmark + 0.75% (2Q02 – Present)

Post Advisory Benchmark = 100% ML US High Yield B/BB Const. (1Q10 – Present) Benchmark = 100% ML High Yield Master II (4Q05 – 4Q09) Performance Objective = 100% Benchmark + 1.75% (4Q05 – Present)

REAL ESTATE

Real Estate Composite Benchmark = 50% Wilshire REIT Index (4Q10 – Present) 50% NCREIF Property Index

100% Wilshire REIT Index (2Q88 – 3Q10)

Adelante Capital Management

Benchmark = 100% Wilshire REIT Index (1Q98 – Present) Performance Objective = 100% Benchmark + 1.00% (1Q98 – Present)

PRIVATE EQUITY

Private Equity Composite Custom Benchmark = Dynamically calculated based on actual weights of the private equity investments and

the private equity source fund (1Q09 – Present)

Private Equity Parking Fund Benchmark = 100% S&P 500 (1Q09 – Present)

REAL ASSETS

Real Assets Composite Benchmark = 100% Alerian MLP Index (4Q11)

GLOSSARY

As Allocated to Managers - The percent of total Trust assets held by the individual managers. The percentages are also summarized by manager category, i.e. Domestic Equity Managers, etc. As Invested by Managers - The percent of total Trust assets that each manager holds in each asset class. The percentages are also summarized by manager category. Beta - A measure of relative volatility. A beta over 1.0 indicates above-market volatility; below 1.0, less volatility. Current Yield - The stated coupon rate of a bond divided by its current market price. Distributions & Administrative Fees - Amounts withdrawn from the trust for the payment of benefits or non-manager fees. DBT/EQ - Debt to equity ratio. A measure of the relative amount of funds provided by lenders and owners.

Debt / Equity Ratio = Long Term Debt Shareholders' Equity Effective Duration - An option-adjusted measure of the sensitivity of the portfolio to changes in interest rates. Equity Yield - The ratio of the level of current income from dividends to the most recent share price.

Equity Yield = Indicated Annual Dividend Stock Price

Interest Rate Anticipation - The portion of net management effect which is attributable to deviation from the duration of the benchmark. Investment Gain/Loss - The investment income and realized or unrealized increase (decrease) in market value of a portfolio for the time period. Investment Fees - Amounts paid to investment managers as investment management fees. Market Capitalization - The sum of the market value of outstanding common stock of a company. Maturity - The date on which a loan, bond, mortgage or other debt/security becomes due and is to be repaid. Median Market Capitalization - The market capitalization that exceeds one half of the values in a population and which is exceeded by the other half of the values. The median has a percentile rank of 50. Net Contribution - The total amount contributed to the trust during the quarter. It includes amounts contributed to the managers’ accounts and amounts transferred within the trust from the managers’ accounts. Amounts withdrawn from the trust are not reflected in this column, since they are included in "Distributions & Administrative Fees" or "Investment Fees." Net/Real Return - A client or manager's total return adjusted for inflation by using the Consumer Price Index.

GLOSSARY

P/B - Price to book ratio, the current market price of a stock divided by the previous year's book value per share.

P/B = Market Price of Common Stock Book Value per Share Portfolio P/B is computed as the reciprocal of the value-weighted summation of the individual stocks’ B/Ps. P/E - Price/earnings ratio, the current market price of a stock divided by the previous year's earning per share.

P/E = Market Price of Common Stock Last 12 months' EPS Portfolio P/C is computed as the reciprocal of the value-weighted summation of the individual stocks’ E/Ps. Performance Comparison – Data for Wilshire Associates Universe Comparison Service is supplied by Wilshire’s Manager Universe Database and by Wilshire’s Cooperative Universe Service. Quality - Weighted portfolio quality rating ranked as follows: GOV = 5.0 - 4.5 AAA = 4.49 - 3.5 AA = 3.49 - 2.5 A = 2.49 - 1.5 BAA = 1.49 - 0.5 <BAA = 0.49 - 0.0 R Square - The percent diversification relative to the market. The higher the number (up to 1.0), the more diversified.

ROE - Return on equity; return to stockholders measured by relating profits to stockholder's equity.

ROE = Net Profit After Tax Stockholders' Equity Sector/Issue - The portion of net management effect which is attributable to a manager's ability to choose bond market sectors and individual issues that outperform the market. Sector Weighting - The portion of net management effect which is attributable to a manager's ability to allocate assets across market sectors. Stock Selection - The portion of net management effect which is attributable to a manager's ability to choose securities that outperform the market. Style - Measures the return impact of a manager's investment style according to the selected index. Timing - The portion of net management effect which is attributable to a manager's ability to use cash in anticipation of falling markets. Total Fund Attribution Return Contribution – The exhibit can be run with or without a Universe Allocation. The formulas below assume a Universe Allocation. If the exhibit is run without a Universe Allocation the relevant return contribution is included in the Strategic Policy Return Contribution. Universe Allocation = (Universe Return * Universe Allocation) / 100.0

GLOSSARY

Strategic Policy = ((1.0 + (Policy Return * Policy Allocation / 100.0)/100.0) / (1.0 + (Universe Return * Universe Allocation / 100.0)) – 1.0) * 100.0

Asset Allocation = ((1.0 + (Actual Allocation * Policy Return / 100.0)/100.0) / (1.0 + (Policy Allocation * Policy Return / 100.0)) – 1.0) * 100.0

Active Management = ((1.0 + (Actual Return * Actual Allocation / 100.0)/100.0) / (1.0 + (Policy Return * Actual Allocation / 100.0)) – 1.0) * 100.0

Actual Return = (Actual Return * Actual Allocation) / 100.0

Total Net Management Effect - Measures the added return produced by a manager. Trading Effect - Measures the impact of quarterly trading on portfolio returns, determined by comparing the actual portfolio return with that of the buy-and-hold portfolio. The buy-and-hold return is used to illustrate the results that would have been obtained if the manager had maintained the initial holdings throughout the period. Turnover - The rate at which securities within a portfolio are exchanged for other securities, defined as the lesser of sales or purchases during a specified period divided by the average market value.

Equity Turnover = Lesser of Equity Purchases or Sales Average Equity Market Value

Years To Effective Maturity - The time remaining in years until the bond’s last payment of interest and principal, taking into account prepayment contingencies of the bond. Yield To Effective Maturity - The option-adjusted yield provided by a bond to its maturity date.

GLOSSARY

Wilshire Equity Sectors CGD Capital Goods CDU Consumer Durables CND Consumer Non-Durables ENR Energy FIN Finance M&S Materials and Services TEC Technology TRN Transportation UTL Utilities Wilshire International Sectors ENR Energy MAT Materials CAP Capital Equipment CON Consumer Goods SRV Services FIN Finance MIN Multi-Industry GMN Gold Mines MIS Miscellaneous

Global Industry Classification Standard Sectors The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor’s. GICS is the service mark of MSCI and S&P and has been licensed for use by Wilshire Associates. CDI Consumer Discretionary CST Consumer Staples ENR Energy FIN Financials HTH Healthcare IND Industrials INF Information Technology MAT Materials TEL Telecommunication Services UTI Utilities Fixed Income Sectors Maturity Sector Analysis FIN Finance FOR Foreign (Yankee Bonds) GA Treasuries & non-mortgage government agencies IND Industrial MISC Miscellaneous, cash and cash equivalents MTGE Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), and corporate mortgages TRAN Transportation UTL Utilities

Documents

cms.cityoftacoma.org … · Table of Contents . TACOMA EMPLOYEES’ RETIREMENT SYSTEM . 1st Quarter 2012. I. MARKET ENVIRONMENT . II. TOTAL FUND . III. U.S. EQUITY . NTGI S&P 500