Mesirow Financial POLICE Report - · PDF fileThe Mesirow Financial POLICE Report is a proprietary watch list which identifies current and potential ... Invesco American Franchise

Mesirow Financial POLICE Report®

March 31, 2013

INS


identifies current and potential issues for investment options on the Mesirow Financial Elite List for MassMutual:

Performance – ranks all investment options against their appropriate peers

Organization – tracks personnel, ownership, adviser/sub-adviser changes

Legal Issues – discloses lawsuits, settlements or regulatory issues

Investment Policy – identifies changes in strategy and/or operations

Consistent Style – evaluates consistency in investment style

Expense – compares fees to a peer group average to assess competitiveness


March 31, 2013

INS2

Overview of Mesirow Financial POLICE Report® The Mesirow Financial POLICE Report is a proprietary watch list which identifies current and potential issues for investment options on the Mesirow Financial Elite List in the following six categories: Performance, Organizational issues, Legal issues, Investment policy, Consistent investment style and Expense. Inclusion in the Mesirow Financial POLICE Report may not necessarily indicate fiduciary coverage for a particular investment option will terminate due to the issue(s) cited. Investment options are added to, and remain on, the Mesirow Financial POLICE Report while concerns are being monitored. They are removed from the Mesirow Financial POLICE Report when the issues have been sufficiently resolved. If an issue is not sufficiently resolved during the monitoring period, the investment option may be removed from fiduciary coverage. Overview of Contents Summary: Lists investment options on the Mesirow Financial Elite List that are being monitored for issues in one or more of the six categories described above Investment Options Removed from Mesirow Financial Elite List This Quarter: Identifies investment options that have been removed from the Mesirow Financial Elite List and no longer qualify for Mesirow Financial's fiduciary coverage due to prolonged issues in one or more of the six categories Investment Options Added to Mesirow Financial POLICE Report This Quarter: Identifies investment options with current or potential issues that were added to the Mesirow Financial POLICE Report in the current quarter Investment Options Removed from Mesirow Financial POLICE Report This Quarter: Identifies investment options that have experienced consistent improvements over three consecutive quarters and no longer need to be monitored on the Mesirow Financial POLICE Report Complete Mesirow Financial POLICE Report: Includes investment options on the Mesirow Financial Elite List that are being monitored—both newly added investment options and carry-overs from previous quarters


March 31, 2013

INS3

SUMMARYINVESTMENT OPTION NAME PERFORMANCE ORGANIZATION LEGAL INVESTMENT POLICY CONSISTENT STYLE EXPENSEAllianceBernstein Global Bond PASS PASS PASS PASS WATCH PASSAve Maria Opportunity WATCH PASS PASS PASS PASS PASSBlackRock Global Allocation WATCH PASS PASS PASS PASS PASSBlackRock LifePath 2050 WATCH PASS PASS WATCH PASS PASSBNY Mellon DL Small Cap Stock Index PASS WATCH PASS PASS PASS PASSCalamos International Growth PASS PASS PASS PASS WATCH PASSColumbia Marsico Growth PASS WATCH PASS PASS PASS PASSDreyfus Bond Market Index PASS WATCH PASS PASS PASS PASSFranklin Templeton Conservative Allocation WATCH PASS PASS PASS PASS PASSFrost Dividend Value Equity WATCH PASS PASS PASS PASS PASSFrost Growth Equity WATCH PASS PASS PASS PASS PASSGoldman Sachs Growth Opportunities PASS WATCH PASS PASS PASS PASSHartford Balanced Allocation WATCH WATCH PASS PASS PASS PASSHartford Capital Appreciation II WATCH PASS PASS PASS PASS PASSHartford Fixed Account PASS WATCH PASS PASS PASS PASSHartford Lifetime Income PASS WATCH PASS PASS PASS PASSHartford Target Retirement 2010 PASS WATCH PASS WATCH PASS PASSHartford Target Retirement 2015 PASS WATCH PASS WATCH PASS PASSHartford Target Retirement 2020 PASS WATCH PASS WATCH PASS PASSHartford Target Retirement 2025 PASS WATCH PASS WATCH PASS PASSHartford Target Retirement 2030 PASS WATCH PASS WATCH PASS PASSHartford Target Retirement 2035 PASS WATCH PASS WATCH PASS PASSHartford Target Retirement 2040 WATCH WATCH PASS WATCH PASS PASSHartford Target Retirement 2045 WATCH WATCH PASS WATCH PASS PASSHartford Target Retirement 2050 WATCH WATCH PASS WATCH PASS PASSInvesco American Franchise (previously Invesco Van Kampen American Franchise)

WATCH PASS PASS PASS PASS PASS

First Quarter 2013 Mesirow Financial POLICE Report®

All information is through 3/31/2013

The most recent version of the quarterly Mesirow Financial POLICE Report® and Market Commentary can be viewed by both plan sponsors and financial professionals by logging into their respective websites.

Investment options on the Elite List are routinely monitored for performance, organizational changes, legal issues, investment policy, consistent style and expenses. The following Mesirow Financial POLICE Report®

provides an overview of the qualitative and quantitative evaluation of all investment options on the Elite List that have not met all of the minimum criteria as of this quarter.


March 31, 2013

INS4

SUMMARYINVESTMENT OPTION NAME PERFORMANCE ORGANIZATION LEGAL INVESTMENT POLICY CONSISTENT STYLE EXPENSEInvesco Mid Cap Gr (previously Invesco Van Kampen Mid Cap Gr)

WATCH PASS PASS PASS PASS PASS

Ivy Large Cap Growth WATCH PASS PASS PASS PASS PASSJPMorgan U.S. Equity PASS WATCH PASS PASS PASS PASSLoomis Sayles Bond PASS WATCH PASS PASS PASS PASSLord Abbett Growth Opportunities WATCH WATCH PASS PASS PASS PASSLord Abbett Intl Core Equity WATCH PASS PASS PASS PASS PASSOppenheimer Global Strategic Inc PASS WATCH PASS PASS PASS PASSOppenheimer International Diversified PASS PASS PASS PASS WATCH PASSOppenheimer Main Street Sm- & Mid-Cap PASS WATCH PASS WATCH PASS PASSPerkins Mid Cap Value WATCH WATCH PASS PASS PASS PASSPioneer Fundamental Growth PASS WATCH PASS PASS PASS PASSPioneer Fundamental Value WATCH WATCH PASS WATCH PASS PASSPioneer Strategic Income PASS WATCH PASS PASS PASS PASSPrudential Jennison 20/20 Focus WATCH PASS PASS PASS PASS PASSPrudential Jennison Natural Resources WATCH PASS PASS PASS PASS PASSPutnam Equity Income PASS WATCH PASS WATCH PASS PASSThornburg International Value WATCH PASS PASS PASS PASS PASSWells Fargo Advantage Asset Alloc PASS WATCH PASS PASS PASS PASS


March 31, 2013

INS5

INVESTMENT OPTIONS REMOVED FROM MESIROW FINANCIAL ELITE LIST THIS QUARTERINVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE REMOVED ACTIONSJP Morgan US Real Estate Real Estate Performance 4th quartile rank relative to category on at least 3 out of the 5

following performance criteria: PrecisionAlpha® and Risk, and 1-, 3- and 5-year trailing returns.

Mar-13 Removed from Elite List due to violating performance criteria.

Royce Value Mid-Cap Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Wells Fargo Advantage Intl Equity Foreign Large Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.



March 31, 2013

INS6

INVESTMENT OPTIONS ADDED TO MESIROW FINANCIAL POLICE REPORT® THIS QUARTERINVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSFrost Growth Equity Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5

following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.

Mar-13 Monitor for performance improvements over three consecutive quarters since date added.

Goldman Sachs Growth Opportunities Mid-Cap Growth Organization Effective April 2013, Scott Kolar is no longer with the firm. Co-managers Steven Barry and Jeffrey Rabinowitz remain to run this strategy. Effective October 2011, David Shell and Warren Fisher are no longer portfolio managers on this investment option.

Mar-13 Monitor performance and strategy for three quarters from the date the change was implemented or finalized.

Hartford Balanced Allocation Moderate Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Hartford Target Retirement 2040 Target Date 2036-2040 Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.






Invesco American Franchise (previously Invesco Van Kampen American Franchise)

Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Ivy Large Cap Growth Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Lord Abbett Intl Core Equity Foreign Large Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.



March 31, 2013

INS7

INVESTMENT OPTIONS ADDED TO MESIROW FINANCIAL POLICE REPORT® THIS QUARTERINVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSOppenheimer Global Strategic Inc Multisector Bond Organization Effective January 28, 2013, Jack Brown replaced Joseph Welsh as

co-manager of this investment option. Brown joins existing co-managers Art Steinmetz, Krishna Memani, and Sara Zervos.


Oppenheimer Main Street Sm- & Mid-Cap Small Blend Investment Policy Effective March 31, 2013, management finished removing the investment option's dedicated quantitative sleeve, a process which began in November 2012. During this transition, management had been selling picks from the quantitative sleeve and putting assets into new or existing picks within the fundamental sleeve. Prior to the transition, the number of holdings was above 500 and the investment option held more smaller cap names due to the quantitative sleeve. After the transition, the number of holdings has decreased and is expected to range between 65 and 100. Further, the investment option's average market cap has increased.

Mar-13 Monitor performance and strategy over three consecutive quarters since date added.

Perkins Mid Cap Value Mid-Cap Value Organization Effective March 2013, Kevin Preloger is named as a portfolio manager on this strategy, joining Jeffrey Kautz and Thomas Perkins.



March 31, 2013

INS8

INVESTMENT OPTIONS REMOVED FROM MESIROW FINANCIAL POLICE REPORT® THIS QUARTER

INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONS

American Century Small Cap Value Small Value Organization Effective May 10, 2012, James Pitman is no longer a manager on this investment option. Jeff John, who was previously an analyst on this strategy, is now a co-manager along with Benjamin Giele.

Jun-12 Removed from Mesirow Financial POLICE Report following completion of monitoring period of organizational change.

American Funds Growth Fund of Amer Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.

Mar-12 Removed from Mesirow Financial POLICE Report due to performance improvement for three consecutive quarters.

BlackRock International Opp Foreign Large Blend Organization Effective June 18, 2012, Nigel Hart replaced Michael Carey as co-manager of this investment option. Hart joins remaining co-managers Thomas Callan and Ian Jamieson. Effective December 1, 2011, Jamieson became co-manager of this investment option.

Dec-11 Removed from Mesirow Financial POLICE Report following completion of monitoring period of organizational change.

Columbia Mid Cap Value Mid-Cap Value Organization Effective May 30, 2012, Noah Petrucci is no longer part of the management team. Lori Ensinger and David Hoffman are the remaining portfolio managers. Effective August 1, 2011, Diane Sobin is no longer part of the management team. Lori Ensinger, Noah Petrucci and David Hoffman will continue to manage this investment option.


Eaton Vance Income Fund of Boston High Yield Bond Organization Effective June 2012, Tom Huggins is no longer listed as a portfolio manager on this investment option. Michael Weilheimer remains as the sole manager.


Franklin Small Cap Value Small Value Organization Effective May 4, 2012, Y. Dogan Sahin is no longer part of the team. Steve B. Raineri replaces Sahin and joins William Lippman, Bruce Baughman, Margaret McGee and Donald Taylor.


Hartford Conservative Allocation Conservative Allocation Organization Effective June 30, 2012, the HIMCO team is no longer responsible for managing this strategy. Wellington takes over as the sole subadvisor of this investment option. The portfolio management team consists of Richard Meagher and Wendy Cromwell.

Mar-12 Removed from Mesirow Financial POLICE Report following completion of monitoring period of organizational change.

Hartford Growth Allocation Aggressive Allocation Organization Effective June 30, 2012, the HIMCO team is no longer responsible for managing this strategy. Wellington takes over as the sole subadvisor of this investment option. The portfolio management team consists of Richard Meagher and Wendy Cromwell.



March 31, 2013

INS9



Lord Abbett Total Return Intermediate-Term Bond Organization Effective April 1, 2012, Jerald Lanzotti and Kewjin Yuoh became co-managers of this investment option. The team is now comprised of four members.


MFS Massachusetts Investors Large Blend Organization Effective April 2012, Nicole Zatlyn is no longer listed as a manager for this strategy. Ted Maloney was added as a co-manager, joining Kevin Beatty.


Oppenheimer International Bond World Bond Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.

Dec-11 Removed from Mesirow Financial POLICE Report due to performance improvement for three consecutive quarters.

RidgeWorth Total Return Bond Intermediate-Term Bond Consistency This investment option does not demonstrate enough exposure to the asset class in which its category primarily invests.

Dec-11 Removed from Mesirow Financial POLICE Report due to style consistency improvement.


March 31, 2013

INS10

COMPLETE MESIROW FINANCIAL POLICE REPORT®

INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSAllianceBernstein Global Bond World Bond Consistency Performance cannot be explained by the customized benchmark that

Mesirow Financial created for the investment option based on its category. This suggests the investment option may be using a strategy that is atypical for its category.

Mar-12 Continue to monitor the investment option for style consistency and performance over three consecutive quarters since date added.

Ave Maria Opportunity Mid-Cap Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.

Sep-12 Monitor for performance improvements over three consecutive quarters since date added.

BlackRock Global Allocation World Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.

Dec-12 Monitor for performance improvements over three consecutive quarters since date added.

BlackRock LifePath 2050 Target Date 2046-2050 Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.

Jun-12 Monitor for performance improvements over three consecutive quarters since date added.

BlackRock LifePath 2050 Target Date 2046-2050 Investment Policy Effective July 2011, BlackRock modified this investment option's domestic equity sleeve. Previously, this sleeve was comprised of two index strategies and one enhanced S&P 500 index strategy. Going forward, the sleeve will be comprised of four actively-managed large cap strategies, an enhanced Russell 1000 index strategy, and an index strategy for small cap. The sleeve's investment universe has been redefined from the S&P 1500 to the Russell 3000. Further, the description of the actively-managed fixed income sleeve now states that debt obligations of non-U.S.-based issuers and derivatives based on foreign currencies are allowed.

Sep-11 Monitor performance and strategy over three consecutive quarters since date added.

BNY Mellon DL Small Cap Stock Index Small Blend Organization Effective August 20, 2012, Bernard Schoenfeld is the primary portfolio manager for this investment option. The previous manager, Steven Mozur, is no longer a part of this strategy.

Jun-12 Monitor performance and strategy for three quarters from the date the change was implemented or finalized.

Calamos International Growth Foreign Large Growth Consistency This investment option does not demonstrate enough exposure to the asset class in which its category primarily invests.

Dec-12 Continue to monitor the investment option for style consistency and performance over three consecutive quarters since date added.


March 31, 2013

INS11


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSColumbia Marsico Growth Large Growth Organization Effective July 20, 2012, Doug Rao is no longer a co-portfolio

manager of this investment option. Tom Marsico and Coralie Witter remain as co-portfolio managers.


Dreyfus Bond Market Index Intermediate-Term Bond Organization Effective September 2012, Nancy Rogers is the sole manager of this investment option. Dawn Guffey is no longer listed as a manager.

Sep-12 Monitor performance and strategy for three quarters from the date the change was implemented or finalized.

Franklin Templeton Conservative Allocation Conservative Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Frost Dividend Value Equity Large Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Frost Growth Equity Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Goldman Sachs Growth Opportunities Mid-Cap Growth Organization Effective April 2013, Scott Kolar is no longer with the firm. Co-managers Steven Barry and Jeffrey Rabinowitz remain to run this strategy. Effective October 2011, David Shell and Warren Fisher are no longer portfolio managers on this investment option.


Hartford Balanced Allocation Moderate Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Hartford Balanced Allocation Moderate Allocation Organization Effective June 30, 2012, the HIMCO team is no longer responsible for managing this strategy. Wellington takes over as the sole subadvisor of this investment option. The portfolio management team consists of Richard Meagher and Wendy Cromwell.


Hartford Capital Appreciation II Large Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.



March 31, 2013

INS12


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSHartford Fixed Account Fixed Account Organization Effective January 1, 2013, Massachusetts Mutual Life Insurance

Company (MassMutual) completed the acquisition of The Hartford’s Retirement Plans Group (RPG). As a result, Babson Capital, a subadvisor used by MassMutual, replaced Hartford Investment Management Company (HIMCO) as manager of the Hartford Fixed Account.

Dec-12 Monitor performance and strategy for three quarters from the date the change was implemented or finalized.

Hartford Lifetime Income Guaranteed Retirement Income

Organization Effective January 1, 2013, Massachusetts Mutual Life Insurance Company (MassMutual) completed the acquisition of The Hartford’s Retirement Plans Group (RPG). As a result, Hartford Fixed Account is no longer managed by The Hartford, but by MassMutual.








Hartford Target Retirement Suite (all investment options in suite)

Target Date Suite Organization Effective June 30, 2012, the HIMCO team is no longer responsible for managing this strategy. Wellington takes over as the sole subadvisor of this investment option. The portfolio management team consists of Rick Wurster and Stephen Gorman.



March 31, 2013

INS13


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSHartford Target Retirement Suite (all investment options in suite)

Target Date Suite Investment Policy Effective July 1, 2012, the new Wellington team made several enhancements to the glidepath and asset alllocation decisions for the Target Date Suite. The equity component of the product's benchmark changed from S&P 500 to MSCI AC World reflecting Wellington’s preference for higher levels of international exposure. The number of underlying investment options is smaller allowing for a simplified line up with each manager having a greater impact on portfolio returns, and each manager is constrained to limit contribution to risk to no more than 20% of the total portfolio. The products are still managed through retirement, however Wellington is using 15 years as the post retirement date glidepath versus 25 years utilized by HIMCO. Lastly, allocation during retirement has a higher emphasis on fixed income with focus on downside and inflation protection.


Invesco American Franchise (previously Invesco Van Kampen American Franchise)

Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Invesco Mid Cap Gr (previously Invesco Van Kampen Mid Cap Gr)

Mid-Cap Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Ivy Large Cap Growth Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


JPMorgan U.S. Equity Large Blend Organization Effective third quarter 2012, Alan Gutmann, lead manager of the value sleeve of this investment option, took a leave of absence. Aryeh Glatter took over his responsibilities. The rest of the team remains in place.


Loomis Sayles Bond Multisector Bond Organization Effective October 22, 2012, Kathleen Gaffney is no longer portfolio manager on this investment option. Dan Fuss, Matthew Eagan and Elaine Stokes remain managers. Fuss had been managing the investment option since 1991.



March 31, 2013

INS14


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSLord Abbett Growth Opportunities Mid-Cap Growth Performance 4th quartile rank relative to category on at least 3 out of the 5



Lord Abbett Growth Opportunities Mid-Cap Growth Organization Effective August 1, 2012, David Linsen no longer serves as co-manager of this investment option. He now serves as research director. Co-manager Paul Volovich remains as sole manager.


Lord Abbett Intl Core Equity Foreign Large Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Oppenheimer Global Strategic Inc Multisector Bond Organization Effective January 28, 2013, Jack Brown replaced Joseph Welsh as co-manager of this investment option. Brown joins existing co-managers Art Steinmetz, Krishna Memani, and Sara Zervos.


Oppenheimer International Diversified Foreign Large Blend Consistency Performance cannot be explained by the customized benchmark that Mesirow Financial created for the investment option based on its category. This suggests the investment option may be using a strategy that is atypical for its category.

Dec-12 Continue to monitor the investment option for style consistency and performance over three consecutive quarters since date added.

Oppenheimer Main Street Sm- & Mid-Cap Small Blend Organization Effective November 15, 2012, Joy Budzinski, Kristin Ketner-Pak, Magnus Krantz, and Adam Weiner were added as co-managers, and existing co-manager Raymond Anello was promoted to lead manager. The team is now comprised of seven managers. Effective April 29, 2011, Raymond Anello became co-manager of this investment option, joining existing managers Matthew Ziehl and Raman Vardharaj. Anello replaced Benjamin Ram, who had served as co-manager since November 2010.



March 31, 2013

INS15


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSOppenheimer Main Street Sm- & Mid-Cap Small Blend Investment Policy Effective March 31, 2013, management finished removing the

investment option's dedicated quantitative sleeve, a process which began in November 2012. During this transition, management had been selling picks from the quantitative sleeve and putting assets into new or existing picks within the fundamental sleeve. Prior to the transition, the number of holdings was above 500 and the investment option held more smaller cap names due to the quantitative sleeve. After the transition, the number of holdings has decreased and is expected to range between 65 and 100. Further, the investment option's average market cap has increased.

Mar-13 Monitor performance and strategy over three consecutive quarters since date added.

Perkins Mid Cap Value Mid-Cap Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Perkins Mid Cap Value Mid-Cap Value Organization Effective March 2013, Kevin Preloger is named as a portfolio manager on this strategy, joining Jeffrey Kautz and Thomas Perkins.


Pioneer Fundamental Growth Large Growth Organization Effective November 1, 2012, Paul Cloonan, Pioneer's co-Head of U.S. Equity Research, became co-manager of this investment option, replacing former co-manager Tim Mulrenan. Cloonan joins remaining co-manager Andrew Acheson.


Pioneer Fundamental Value Large Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Pioneer Fundamental Value Large Value Organization Effective June 7, 2013, this investment option will absorb Pioneer Disciplined Value. The combined investment option will be named Pioneer Disciplined Value and will retain Pioneer Disciplined Value's management team, strategy, and policies. Effective August 1, 2012, Ned Shadek and John Peckham became managers. Pioneer terminated its subadvisory relationship with Cullen Capital Management and brought the management of this investment option in-house.



March 31, 2013

INS16


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSPioneer Fundamental Value Large Value Investment Policy Effective August 1, 2012, this investment option is managed by

Pioneer managers who are more benchmark aware than the previous team and are likely to trim the investment option's foreign equity allocation. Its number of holdings is expected to increase from the 30-40 range to the 40-50 range.

Jun-12 Monitor performance and strategy over three consecutive quarters since date added.

Pioneer Strategic Income Multisector Bond Organization Effective December 15, 2012, Andrew Feltus and Charles Melchreit became co-managers. They join existing manager Kenneth Taubes.


Prudential Jennison 20/20 Focus Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Prudential Jennison Natural Resources Natural Resources Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Putnam Equity Income Large Value Organization Effective August 29, 2012, Darren Jaroch is now the sole manager of this strategy. He replaces Bart Geer, who is no longer with the firm.


Putnam Equity Income Large Value Investment Policy Effective August 29, 2012, in addition to the manager change, the investment process is changing to de-emphasize previously used quantitative models and to instead focus more on fundamental analysis.


Thornburg International Value Foreign Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Wells Fargo Advantage Asset Alloc World Allocation Organization Effective September 14, 2012, portfolio manager Sam Wilderman has been named co-head of GMO LLC’s Asset Allocation team and has joined Ben Inker, as co-portfolio manager of the investment option. GMO LLC is a global investment management firm and the subadvisor of the investment option.


Glossary of Terms

Alpha: The measure of returns of a fund that can not be attributed to the performance of the market. In other words, it shows how the manager performed if the market’s return was zero. The higher the number the more return added by the manager. A negative number indicates the manager did not contribute any performance above the performance of the market.

Peer Group: Mesirow Financial's grouping of funds based on a proprietary process utilizing returns based style analysis that distinguishes Style Pure from Multi-Style Managers.

Precision Alpha®: Mesirow Financial's propietary measure of alpha. The process differs from traditional alpha measures by 1) more accurately grouping similar strategies (style pure and multi style managers), 2) increasing the likelihood that multi-style managers are included in the analysis, and 3) accounting for statistical confidence to better differentiate skill from luck.

Precision Alpha® Return Score: Based on the rank of each fund's Precision Alpha within its Peer Group; Funds with higher Precision Alpha Return Scores and higher Precision Alpha are desirable.

Quartile Rankings: Based on the Precision Return and Risk Scores in the Peer Group or Morningstar Category Rank, where first quartile = 1% - 25%; second quartile = 26% - 50%; third quartile = 51% - 75%; and fourth quartile = 76% - 100%.

Information Ratio: Calculated by taking the Precision Alpha and dividing it by the tracking error, it gives the sense of how much excess return a fund provides for each unit of risk.

Precision Alpha® Risk Score: Based on the reverse rank of each fund's Information Ratio within its Peer Group; Fund with higher Information Ratios and consequently lower Precision Alpha Risk scores are desirable.

Category: Morningstar Category based on holdings data.

Morningstar Category Rank: A fund’s total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1.

The Mesirow Financial Investment Strategies Group is a division of Mesirow Financial Investment Management Inc. The information provided herein is for informational purposes only and should not be construed as a recommendation to purchase or sell any particular security or investment vehicle(s) offered by Mesirow Financial Investment Management, Inc. (MFIM) or affiliates of MFIM. The information contained herein has been obtained form sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. Any opinions expressed are subject to change without notice. Other Mesirow Financial affiliates may receive fees for selling or advising on the purchase or sale of products mentioned herein. Additionally, Mesirow Financial affiliates may also receive fees paid by manufacturers or distributors of said products in connection to other professional services provided by the applicable Mesirow Financial affiliate. The sale or advice provided is in no way related or contingent upon the payment received for these other services. It should not be assumed that any recommendations incorporated herein will be profitable or will equal past performance. Mesirow Financial does not provide legal or tax advice. Investment advisory services provided through Mesirow Financial Investment Management, Inc., a SEC-registered investment advisor. Advisory Fees are described in Mesirow Financial Investment Management Inc.’s Part II of the Form ADV. Mesirow Financial refers to Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. The Mesirow Financial name and logo are registered service marks of Mesirow Financial Holdings, Inc. © 2013, Mesirow Financial Holdings, Inc. All rights reserved.

www.mesirowfinancial.com

Investment Management | Global Markets | Insurance Services | Consulting Services

http://www.mesirowfinancial.com/#www.mesirowfinancial.com�

Mesirow Financial POLICE Report® for Legacy FundsMarch 31, 2013

INS


identifies current and potential issues for investment options on the Mesirow Financial Elite List for MassMutual Legacy Funds:

Performance – ranks all investment options against their appropriate peers

Organization – tracks personnel, ownership, adviser/sub-adviser changes

Legal Issues – discloses lawsuits, settlements or regulatory issues

Investment Policy – identifies changes in strategy and/or operations

Consistent Style – evaluates consistency in investment style

Expense – compares fees to a peer group average to assess competitiveness


INS2

Overview of Mesirow Financial POLICE Report® The Mesirow Financial POLICE Report is a proprietary watch list which identifies current and potential issues for investment options on the Mesirow Financial Elite List in the following six categories: Performance, Organizational issues, Legal issues, Investment policy, Consistent investment style and Expense. Inclusion in the Mesirow Financial POLICE Report may not necessarily indicate fiduciary coverage for a particular investment option will terminate due to the issue(s) cited. Investment options are added to, and remain on, the Mesirow Financial POLICE Report while concerns are being monitored. They are removed from the Mesirow Financial POLICE Report when the issues have been sufficiently resolved. If an issue is not sufficiently resolved during the monitoring period, the investment option may be removed from fiduciary coverage. Overview of Contents Summary: Lists investment options on the Mesirow Financial Elite List that are being monitored for issues in one or more of the six categories described above Investment Options Removed from Mesirow Financial Elite List This Quarter: Identifies investment options that have been removed from the Mesirow Financial Elite List and no longer qualify for Mesirow Financial's fiduciary coverage due to prolonged issues in one or more of the six categories Investment Options Added to Mesirow Financial POLICE Report This Quarter: Identifies investment options with current or potential issues that were added to the Mesirow Financial POLICE Report in the current quarter Investment Options Removed from Mesirow Financial POLICE Report This Quarter: Identifies investment options that have experienced consistent improvements over three consecutive quarters and no longer need to be monitored on the Mesirow Financial POLICE Report Complete Mesirow Financial POLICE Report: Includes investment options on the Mesirow Financial Elite List that are being monitored—both newly added investment options and carry-overs from previous quarters


Investment options are not available for selection on platform and only apply to plans with existing assets in these investments.

INS3

SUMMARYINVESTMENT OPTION NAME PERFORMANCE ORGANIZATION LEGAL INVESTMENT POLICY CONSISTENT STYLE EXPENSEAlger Capital Appreciation Focus (previously Alger Large Cap Growth Institutional)

WATCH PASS PASS PASS PASS WATCH

AllianceBern Global Risk Alloc (previously AllianceBernstein Balanced Shares)

PASS WATCH PASS WATCH PASS PASS

American Century Real Estate PASS WATCH PASS PASS PASS PASSAmerican Century Strat Allc: Agrsv PASS WATCH PASS PASS PASS PASSAmerican Century Strat Allc: Cnsrv PASS WATCH PASS PASS PASS PASSAmerican Century Strat Allc: Mod PASS WATCH PASS PASS PASS PASSAmerican Century Value PASS WATCH PASS PASS PASS PASSBlackRock Basic Value PASS WATCH PASS PASS PASS PASSBlackRock Core Bond PASS WATCH PASS PASS PASS PASSBlackRock Mid-Cap Growth Equity WATCH WATCH PASS PASS PASS WATCHBlackRock US Government Bond PASS WATCH PASS PASS PASS PASSBMO Government Income PASS WATCH PASS PASS PASS PASSClearBridge Large Cap Growth (previously Legg Mason ClearBridge Large Cap Gr)

PASS WATCH PASS PASS PASS PASS

Columbia Diversified Equity Income PASS WATCH PASS PASS PASS PASSDFA International Small Cap Value WATCH WATCH PASS PASS PASS PASSDWS Core Equity PASS WATCH PASS WATCH PASS PASSDWS Diversified Intl Eq PASS WATCH PASS WATCH PASS PASSDWS Equity Dividend WATCH WATCH PASS WATCH PASS PASSFederated Total Return Bond PASS WATCH PASS PASS PASS PASSFederated US Govt 2-5 Yr PASS PASS PASS WATCH PASS PASSFidelity Advisor Growth Opportunities PASS WATCH PASS PASS PASS PASSFidelity VIP FundsManager 85% WATCH PASS PASS PASS PASS PASSFidelity VIP Growth WATCH PASS PASS PASS PASS PASSFidelity VIP Growth Opportunities PASS WATCH PASS PASS PASS PASSFranklin U.S. Government Secs WATCH PASS PASS PASS PASS PASS

First Quarter 2013 Mesirow Financial POLICE Report®

All information is through 3/31/2013

The most recent version of the quarterly Mesirow Financial POLICE Report® and Market Commentary can be viewed by both plan sponsors and their financial professionals by logging into their respective websites.

Investment options on the Elite List are routinely monitored for performance, organizational changes, legal issues, investment policy, consistent style and expenses. The following Mesirow Financial POLICE Report®

provides an overview of the qualitative and quantitative evaluation of all investment options on the Elite List that have not met all of the minimum criteria as of this quarter.



INS4

SUMMARYINVESTMENT OPTION NAME PERFORMANCE ORGANIZATION LEGAL INVESTMENT POLICY CONSISTENT STYLE EXPENSEGoldman Sachs Capital Growth PASS WATCH PASS PASS PASS PASSGoldman Sachs Structured Intl Equity WATCH WATCH PASS PASS PASS PASSHartford Capital Appreciation HLS WATCH PASS PASS PASS PASS PASSINTECH U.S. Growth PASS WATCH PASS PASS PASS PASSInvesco Stable Value Trust PASS PASS PASS WATCH PASS PASSJanus Aspen Worldwide WATCH PASS PASS PASS PASS PASSJP Morgan Small Cap Equity PASS WATCH PASS PASS PASS PASSLord Abbett Balanced Strategy WATCH WATCH PASS WATCH PASS PASSLord Abbett Calibrated Dividend Gr PASS WATCH PASS WATCH PASS PASSLord Abbett Global Allocation WATCH WATCH PASS WATCH PASS PASSLord Abbett Small Cap Value WATCH PASS PASS PASS PASS PASSManagers Cadence Mid-Cap WATCH WATCH PASS PASS PASS PASSMetropolitan West High Yield Bond PASS WATCH PASS PASS PASS PASSMetropolitan West Total Return Bond PASS WATCH PASS PASS PASS PASSMorgan Stanley Inst Opportunity WATCH PASS PASS PASS PASS PASSOakmark Equity & Income WATCH WATCH PASS PASS PASS PASSOppenheimer Capital Appreciation WATCH WATCH PASS PASS PASS PASSOppenheimer Global Opportunities WATCH PASS PASS PASS PASS PASSPIMCO Mortgage-Backed Securities PASS WATCH PASS PASS PASS PASSPioneer Ibbotson Moderate Allocation WATCH WATCH PASS PASS PASS PASSPNC Mid Cap Value PASS WATCH PASS PASS PASS PASSRoyce Pennsylvania Mutual WATCH PASS PASS PASS PASS PASSRussell LifePoints Balanced Strategy WATCH PASS PASS PASS PASS PASSRussell LifePoints Growth Strategy WATCH PASS PASS PASS PASS PASST. Rowe Price New Era PASS WATCH PASS PASS PASS PASSTCW Dividend Focused PASS WATCH PASS PASS PASS PASSUBS US Allocation PASS WATCH PASS PASS PASS PASSVanguard Total Bond Market Index PASS WATCH PASS PASS PASS PASSWells Fargo Advantage Spec SmCp Val WATCH PASS PASS PASS PASS PASSWestern Asset Core Bond PASS PASS PASS WATCH PASS PASSWestwood SmallCap Value PASS PASS WATCH PASS PASS PASS



INS5

INVESTMENT OPTIONS REMOVED FROM MESIROW FINANCIAL ELITE LIST THIS QUARTERINVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE REMOVED ACTIONSAllianzGI Mid-Cap (previously Allianz RCM Mid-Cap )

Mid-Cap Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha® and Risk, and 1-, 3- and 5-year trailing returns.


Columbia Small Cap Value Fund I Small Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


CRM Mid Cap Value Mid-Cap Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Hartford Growth Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Hartford Growth HLS Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Managers AMG Systematic Value Large Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Pioneer Ibbotson Aggressive Allocation Aggressive Allocation Performance, Expense 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns. The investment option’s expense ratio is significantly higher than the peer group average.

Mar-13 Removed from Elite List due to violating performance and expense criteria.

Royce Low Priced Stock Small Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.




INS6

INVESTMENT OPTIONS ADDED TO MESIROW FINANCIAL POLICE REPORT® THIS QUARTERINVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSAmerican Century Real Estate Real Estate Organization Effective March 2013, Steven Rodriguez was promoted to portfolio

manager of this investment option. He joins Steven Brown, who remains lead manager.


American Century Value Large Value Organization Effective February 2013, Chad Baumler was promoted to portfolio manager, and he joins current managers Kevin Toney, Michael Liss, and Philip Davidson.


BlackRock Mid-Cap Growth Equity Mid-Cap Growth Organization Effective March 1, 2013, Lawrence Kemp, Phil Ruvinsky, and Kathryn Mongelli replaced Eileen Leary and Andrew Leger as managers of this investment option.


BMO Government Income Intermediate Government

Organization Effective April 1, 2013, Jason Weiner is no longer a portfolio manager for this investment option. Daniel Byrne and Dave Komberec, who have managed the strategy together since February 17, 2012, remain as portfolio managers. On July 6, 2011, BMO completed the acquisition of Marshall & Ilsley Corporation.


Columbia Diversified Equity Income Large Value Organization Effective February 28, 2013, Laton Spahr is no longer a co-portfolio manager of this investment option. Paul Stocking and Steven Schroll remain as co-managers along with new team member Dean Ramos.


DFA International Small Cap Value Foreign Small/Mid Value Organization Effective February 28, 2013, Stephen Clark is no longer a co-portfolio manager of this investment option. He transitioned from his role as Head of Portfolio Management but remains with the firm. The investment option is now managed by Karen Umland, Joseph Chi, Jed Fogdall and Henry Gray.


DWS Core Equity Large Blend Organization Effective May 31, 2013, this investment option's advisor Deutsche Inv. Mgmt. Americas Inc. (Deutsche) terminated its subadvisory agreement with QS Investors. Managers Robert Wang and Russell Shtern of QS Investors will be replaced by Owen Fitzpatrick (lead manager), Thomas Hynes, Brendan O’Neill, and Pankaj Bhatnagar of Deutsche.




INS7

INVESTMENT OPTIONS ADDED TO MESIROW FINANCIAL POLICE REPORT® THIS QUARTERINVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSDWS Diversified Intl Eq Foreign Large Blend Organization Effective July 12, 2013, this investment option's advisor Deutsche

Inv. Mgmt. Americas Inc. (Deutsche) terminated its subadvisory agreement with QS Investors. Managers Robert Wang and Russell Shtern of QS Investors will be replaced by Nils Ernst, Martin Berberich, and Sebastian Werner of Deutsche. Also on this date, the investment option's name will change from DWS Diversified International Equity to DWS Global Equity.


DWS Diversified Intl Eq Foreign Large Blend Investment Policy Effective July 12, 2013, the strategy will be broadened from investing strictly in developed non-U.S. equities to a global equity mandate, and the benchmark will change from the MSCI EAFE Index to the MSCI All Country World Index.


Federated Total Return Bond Intermediate-Term Bond Organization Effective March 22, 2013, Don Ellenberger replaces Joseph Balestrino as a portfolio manager. Ellenberger joins Todd Abraham, Mark Durbiano, Roberto Sanchez-Dahl, and Anthony Delserone.


Goldman Sachs Capital Growth Large Growth Organization Effective April 2013, Joseph Hudepohl is no longer with the firm. Stephen Becker is added a co-manager, and he joins the team of Steven Barry and Timothy Leahy. Effective October 2011, David Shell and Kumar Venkateswaran are no longer co-managers of this investment option.


Invesco Stable Value Trust Stable Value Investment Policy Effective May 2013, the notice period for redemption changes from 12 months to 24 months. Plans may continue at any time to redeem their units at the lesser of market and book value. The notice period was extended to expand the amount of wrap coverage provided, and because of this, the product is now open to new plans at this time. It was previously in a limited offering status.


JP Morgan Small Cap Equity Small Growth Organization Effective February 4, 2013, manager Glenn Gawronski took a leave of absence from the firm. Don San Jose, previously co-manager, is now the lead manager and is joined by Chris Jones as the new co-manager.


Morgan Stanley Inst Opportunity Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.




INS8

INVESTMENT OPTIONS ADDED TO MESIROW FINANCIAL POLICE REPORT® THIS QUARTERINVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSOppenheimer Capital Appreciation Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5



PIMCO Mortgage-Backed Securities Intermediate-Term Bond Organization Effective January 25, 2013, Michael Cudzil joins Daniel Hyman as a portfolio manager, replacing W. Scott Simon.


PNC Mid Cap Value Mid-Cap Value Organization Effective February 2013, a new team of five managers is responsible for this investment option. Gordon Johnson is the lead portfolio manager. The previous management team has left the firm.


Russell LifePoints Balanced Strategy Moderate Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


T. Rowe Price New Era Natural Resources Organization Effective September 30, 2013, Shawn Driscoll will succeed Tim Parker as lead portfolio manager and chairman of this investment option's Investment Advisory Committee. Driscoll and Parker will work closely together during the transition period starting April 29, 2013, when T. Rowe Price announced the change. Tim Parker, who took over as manager on June 30, 2010, is leaving the firm to pursue other opportunities.


Vanguard Total Bond Market Index Intermediate-Term Bond Organization Effective first quarter 2013, Joshua Barrickman replaced co-manager Gregory Davis. Barrickman joins existing manager Ken Volpert.


Wells Fargo Advantage Spec SmCp Val Small Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.




INS9



American Funds US Government Sec Intermediate Government

Organization Effective May 1, 2012, John Smet is no longer on the portfolio counselor team that oversees this investment option. The team is now comprised of four members.


Delaware Emerging Markets Diversified Emerging Mkts

Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.

Jun-12 Removed from Mesirow Financial POLICE Report due to performance improvement for three consecutive quarters.

Hartford Balanced Moderate Allocation Organization Effective May 2012, Peter Higgins is no longer listed as a manager on this strategy. John Keogh and Karen Grimes remain as managers. Effective April 30, 2012, the HIMCO team is no longer responsible for managing this strategy and Wellington takes over as the sole subadvisor.


Hartford Balanced HLS Moderate Allocation Organization Effective May 2012, Peter Higgins is no longer listed as a manager on this strategy. John Keogh and Karen Grimes remain as managers. Effective April 30, 2012, the HIMCO team is no longer responsible for managing this strategy and Wellington takes over as the sole subadvisor.


Hartford Small/Mid Cap Equity HLS Mid-Cap Blend Organization Effective June 30, 2012, the HIMCO team is no longer responsible for managing this strategy. Wellington takes over as the sole subadvisor of this investment option. The portfolio manager is David Elliot.


Hartford Stock HLS Large Blend Organization Effective April 30, 2012, the HIMCO team is no longer responsible for managing this strategy and Wellington takes over as the sole subadvisor. The portfolio manager is Donald Kilbride.


Lord Abbett Short Duration Income Short-Term Bond Organization Effective April 1, 2012, Jerald Lanzotti and Kewjin Yuoh became co-managers of this investment option. The team is now comprised of four members. Effective December 7, 2010, Steven Rocco no longer serves as co-manager of this investment option.


Parnassus Equity Income Large Blend Organization Effective May 1, 2012, Benjamin Allen was named a portfolio manager for this investment option. Allen joins Todd Ahlsten who has managed the strategy since May 1, 2001.


RS Partners Small Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.

Dec-11 Removed from Mesirow Financial POLICE Report due to performance improvement for three consecutive quarters.



INS10


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSAlger Capital Appreciation Focus (previously Alger Large Cap Growth Institutional)

Large Growth Performance, Expense 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns. The investment option’s expense ratio is significantly higher than the peer group average.

Dec-12 Monitor the investment option’s performance and fees over three consecutive quarters since date added.


World Allocation Organization Effective October 8, 2012, the previous portfolio management team of six managers was replaced with a new team. Ashwin Alankar, Michael DePalma, and Leon Zhu are now the named managers on this strategy.



World Allocation Investment Policy Effective October 8, 2012, this product adopted a more flexible asset-allocation approach designed to preserve long-term growth potential while limiting downside protection. The primary index changed from the Russell 1000 Value to the MSCI World Index. The secondary benchmark changed from the Barclays US Aggregate Bond Index to the Barclays Global Aggregate Bond Index. The new management team looks to dynamically adjust its asset allocations so that each asset class is expected to always contribute an equal amount of downside risk to the portfolio.


American Century Real Estate Real Estate Organization Effective March 2013, Steven Rodriguez was promoted to portfolio manager of this investment option. He joins Steven Brown, who remains lead manager.


American Century Strat Allc: Agrsv Aggressive Allocation Organization Effective April 2013, Enrique Chang, former CIO, is no longer a named manager on the American Century asset allocation strategies. He is leaving the firm in September and will oversee the transition to the remaining team of four managers. The four managers consist of Radu Gabudean, a new addition to the team, along with Scott Wilson, Scott Wittman, and Rich Weiss. Effective April 2012, Irina Torelli is no longer part of the asset allocation team at American Century.




INS11


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSAmerican Century Strat Allc: Cnsrv Conservative Allocation Organization Effective April 2013, Enrique Chang, former CIO, is no longer a

named manager on the American Century asset allocation strategies. He is leaving the firm in September and will oversee the transition to the remaining team of four managers. The four managers consist of Radu Gabudean, a new addition to the team, along with Scott Wilson, Scott Wittman, and Rich Weiss. Effective April 2012, Irina Torelli is no longer part of the asset allocation team at American Century.


American Century Strat Allc: Mod Moderate Allocation Organization Effective April 2013, Enrique Chang, former CIO, is no longer a named manager on the American Century asset allocation strategies. He is leaving the firm in September and will oversee the transition to the remaining team of four managers. The four managers consist of Radu Gabudean, a new addition to the team, along with Scott Wilson, Scott Wittman, and Rich Weiss. Effective April 2012, Irina Torelli is no longer part of the asset allocation team at American Century.


American Century Value Large Value Organization Effective February 2013, Chad Baumler was promoted to portfolio manager, and he joins current managers Kevin Toney, Michael Liss, and Philip Davidson.


BlackRock Basic Value Large Value Organization Effective October 26, 2012, Bartlett Geer was added as co-manager of this investment option, replacing Kevin Rendino, who retired. Geer joins remaining co-manager Carrie King. Effective May 15, 2011, Kurt Schansinger no longer serves as co-manager.


BlackRock Core Bond Intermediate-Term Bond Organization Effective November 14, 2012, co-manager Eric Pellicciaro left the firm and co-manager Matthew Marra left the investment option to take on other responsibilities within BlackRock. Bob Miller, manager since October 2011, and Rick Rieder, manager since August 2010, remain on the investment option. Effective August 2010, Curtis Arledge, co-manager and BlackRock's CIO of Fixed Income-Fundamental Portfolios, left the firm.


BlackRock Mid-Cap Growth Equity Mid-Cap Growth Performance, Expense 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns. The investment option’s expense ratio is significantly higher than the peer group average.

Dec-12 Monitor the investment option’s performance and fees over three consecutive quarters since date added.



INS12


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSBlackRock Mid-Cap Growth Equity Mid-Cap Growth Organization Effective March 1, 2013, Lawrence Kemp, Phil Ruvinsky, and

Kathryn Mongelli replaced Eileen Leary and Andrew Leger as managers of this investment option.


BlackRock US Government Bond Intermediate Government

Organization Effective November 14, 2012, co-manager Eric Pellicciaro left the firm and co-manager Matthew Marra left the investment option to take on other responsibilities within BlackRock. They have been replaced by Matthew Kraeger and Bob Miller.


BMO Government Income Intermediate Government

Organization Effective April 1, 2013, Jason Weiner is no longer a portfolio manager for this investment option. Daniel Byrne and Dave Komberec, who have managed the strategy together since February 17, 2012, remain as portfolio managers. On July 6, 2011, BMO completed the acquisition of Marshall & Ilsley Corporation.


ClearBridge Large Cap Growth (previously Legg Mason ClearBridge Large Cap Gr)

Large Growth Organization Effective March 31, 2013, Scott Glasser is no longer a manager on this strategy. Margaret Vitrano and Peter Bourbeau remain as co-managers. Effective October 2012, Margaret Vitrano was named a co-manager on this strategy and she joined Peter Bourbeau and Scott Glasser on the team.


Columbia Diversified Equity Income Large Value Organization Effective February 28, 2013, Laton Spahr is no longer a co-portfolio manager of this investment option. Paul Stocking and Steven Schroll remain as co-managers along with new team member Dean Ramos.


DFA International Small Cap Value Foreign Small/Mid Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


DFA International Small Cap Value Foreign Small/Mid Value Organization Effective February 28, 2013, Stephen Clark is no longer a co-portfolio manager of this investment option. He transitioned from his role as Head of Portfolio Management but remains with the firm. The investment option is now managed by Karen Umland, Joseph Chi, Jed Fogdall and Henry Gray.




INS13


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSDWS Core Equity Large Blend Organization Effective May 31, 2013, this investment option's advisor Deutsche

Inv. Mgmt. Americas Inc. (Deutsche) terminated its subadvisory agreement with QS Investors. Managers Robert Wang and Russell Shtern of QS Investors will be replaced by Owen Fitzpatrick (lead manager), Thomas Hynes, Brendan O’Neill, and Pankaj Bhatnagar of Deutsche.


DWS Core Equity Large Blend Investment Policy Effective February 1, 2012, the investment option changed its name from DWS Growth & Income to DWS Core Equity. Consistent with the name change, under normal circumstances it intends to invest at least 80% of total assets in equities, mainly common stocks.


DWS Diversified Intl Eq Foreign Large Blend Organization Effective July 12, 2013, this investment option's advisor Deutsche Inv. Mgmt. Americas Inc. (Deutsche) terminated its subadvisory agreement with QS Investors. Managers Robert Wang and Russell Shtern of QS Investors will be replaced by Nils Ernst, Martin Berberich, and Sebastian Werner of Deutsche. Also on this date, the investment option's name will change from DWS Diversified International Equity to DWS Global Equity.


DWS Diversified Intl Eq Foreign Large Blend Investment Policy Effective July 12, 2013, the strategy will be broadened from investing strictly in developed non-U.S. equities to a global equity mandate, and the benchmark will change from the MSCI EAFE Index to the MSCI All Country World Index.


DWS Equity Dividend Large Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


DWS Equity Dividend Large Value Organization Effective November 1, 2012, Anna Wallentin, Juergen Foerster, and Johannes Prix were added as co-managers of this investment option and Jason Inzer was removed. The three managers join existing manager Thomas Voecking. Effective April 15, 2011, Jason Inzer and Thomas Voecking replaced Volker Dosch, Oliver Pfeil, and Thomas Schuessler as managers of this investment option.




INS14


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSDWS Equity Dividend Large Value Investment Policy Effective March 1, 2012, this investment option became DWS Equity

Dividend. Because “dividend” was added to the name, consistent with the 1940 Act, the investment option revised its policy of investing 80% of net assets in equity securities to that of investing at least 80% of net assets in dividend-paying equity securities. DWS stated that this investment policy revision did not result in significant changes to positioning. Effective April 15, 2011, new management started running the investment option using a market research system. The team's security selection will be driven by stock recommendations from 5,000 internal and external analysts globally. Effective June 1, 2009, management invests in a diversified portfolio of 60-80 stocks. This represents a more concentrated portfolio than before the investment option's management change.


Federated Total Return Bond Intermediate-Term Bond Organization Effective March 22, 2013, Don Ellenberger replaces Joseph Balestrino as a portfolio manager. Ellenberger joins Todd Abraham, Mark Durbiano, Roberto Sanchez-Dahl, and Anthony Delserone.


Federated US Govt 2-5 Yr Short Government Investment Policy Effective August 17, 2012, this invesment option is able to invest in government mortgage-backed securities in extreme market conditions such as a zero yield environment.


Fidelity Advisor Growth Opportunities Large Growth Organization Effective October 1, 2012, Gopal Reddy became co-manager of this investment option. Reddy joins existing manager Stephen Wymer.


Fidelity VIP FundsManager 85% Aggressive Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Fidelity VIP Growth Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Fidelity VIP Growth Opportunities Large Growth Organization Effective October 1, 2012, Gopal Reddy became co-manager of this investment option. Roddy joins existing manager Stephen Wymer.




INS15


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSFranklin U.S. Government Secs Intermediate

GovernmentPerformance 4th quartile rank relative to category on at least 3 out of the 5



Goldman Sachs Capital Growth Large Growth Organization Effective April 2013, Joseph Hudepohl is no longer with the firm. Stephen Becker is added a co-manager, and he joins the team of Steven Barry and Timothy Leahy. Effective October 2011, David Shell and Kumar Venkateswaran are no longer co-managers of this investment option.


Goldman Sachs Structured Intl Equity Foreign Large Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Goldman Sachs Structured Intl Equity Foreign Large Value Organization Effective August 2012, James Park is now listed as a manager on this strategy. He joins a team of three other managers. Effective February 2012, Nellie Bronner is now listed as a manager on this strategy. Len Ioffe and Ronald Hua remain on as co-managers. Effective October 2011, Ronald Hua is now listed as a manager for this strategy, replacing William Fallon.


Hartford Capital Appreciation HLS Large Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


INTECH U.S. Growth Large Growth Organization Effective November 2012, Phillip Whitman is a named portfolio manager on this strategy. He joins a team consisting of Adrian Banner, Joseph Runnels and Vassilios Papathanakos.


Invesco Stable Value Trust Stable Value Investment Policy Effective May 2013, the notice period for redemption changes from 12 months to 24 months. Plans may continue at any time to redeem their units at the lesser of market and book value. The notice period was extended to expand the amount of wrap coverage provided, and because of this, the product is now open to new plans at this time. It was previously in a limited offering status.




INS16


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSJanus Aspen Worldwide World Stock Performance 4th quartile rank relative to category on at least 3 out of the 5



JP Morgan Small Cap Equity Small Growth Organization Effective February 4, 2013, manager Glenn Gawronski took a leave of absence from the firm. Don San Jose, previously co-manager, is now the lead manager and is joined by Chris Jones as the new co-manager.


Lord Abbett Balanced Strategy Moderate Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Lord Abbett Balanced Strategy Moderate Allocation Organization Effective July 21, 2011, five of this investment option's six co-managers were removed, leaving Robert Gerber as the sole manager.


Lord Abbett Balanced Strategy Moderate Allocation Investment Policy Effective fourth quarter of 2011, Lord Abbett Short Duration Income was added as an underlying investment option. Previously, no underlying short-term bond investment option existed. Effective third quarter of 2011, this investment option adopted a tactical asset allocation approach in which the portfolio manager periodically adjusts exposure to a particular asset classes within broader ranges. Along with this change, Lord Abbett raised the allowable international exposure of this investment option from 10% to 25% of assets. Further, Lord Abbett Convertible was added as an underlying investment option. Previously, no underlying convertibles investment option existed.


Lord Abbett Calibrated Dividend Gr Large Blend Organization Effective September 27, 2012, Lord Abbett Capital Structure was reorganized into Lord Abbett Calibrated Dividend Growth. The Calibrated Dividend Growth team comprised of Walter Prahl and Frederick Ruvkunthe is responsible for managing the combined investment option. However, Lord Abbett Calibrated Dividend Growth has taken Lord Abbett Capital Structure's track record.




INS17


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSLord Abbett Calibrated Dividend Gr Large Blend Investment Policy Effective September 27, 2012, the combined investment option

utilizes Calibrated Dividend Growth's strategy of primarily investing in equity securities of large and mid-sized companies that have a history of increasing dividends and that have the potential for capital appreciation. It does not follow Capital Structure's previous strategy of targeting an approximately 60% equity and 40% fixed income and having the flexibility to invest in convertible securities and high yield debt. As such, the investment option shifted from its pre-merger category of Aggressive Allocation category into the post-merger category of Large Blend in the fourth quarter of 2012.


Lord Abbett Global Allocation World Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Lord Abbett Global Allocation World Allocation Organization Effective July 21, 2011, five of this investment option's six co-managers were removed, leaving Robert Gerber as the sole manager.


Lord Abbett Global Allocation World Allocation Investment Policy Effective third quarter of 2011, this investment option adopted a tactical asset allocation approach in which the portfolio manager periodically adjusts exposure to a particular asset class within broader ranges. Further, Lord Abbett Convertible was added as an underlying investment option. Previously, no underlying convertibles investment option existed.


Lord Abbett Small Cap Value Small Blend Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Managers Cadence Mid-Cap Mid-Cap Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.




INS18


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSManagers Cadence Mid-Cap Mid-Cap Growth Organization Effective May 1, 2012, Stephen Demirjian was added as a portfolio

manager for this investment option. Demirjian joined Robert Ginsberg, Michael Skillman, Robert Fitzpatrick, and William Bannick. Effective August 1, 2011, Robert Ginsberg was added as a portfolio manager for this investment option. In the third quarter of 2010, the investment option was reorganized from an Allianz product into The Managers Funds.


Metropolitan West High Yield Bond High Yield Bond Organization Effective February 6, 2013, TCW management and The Carlyle Group have completed the acquisition of TCW, the parent company of Metropolitan West Asset Management, from Société Générale. The announcement of an agreement between TCW management and The Carlyle Group about the transaction was first made in August 2012. As a result of the transaction, TCW became an independent company and approximately 40% employee owned. David Lippman, previously the Head of Fixed Income at TCW, is President and CEO of TCW. Marc Stern, previously President and CEO, is the Chairman of the newly formed TCW Board of Managers and will continue to work in close partnership with Lippman.


Metropolitan West Total Return Bond Intermediate-Term Bond Organization Effective February 6, 2013, TCW management and The Carlyle Group have completed the acquisition of TCW, the parent company of Metropolitan West Asset Management, from Société Générale. The announcement of an agreement between TCW management and The Carlyle Group about the transaction was first made in August 2012. As a result of the transaction, TCW became an independent company and approximately 40% employee owned. David Lippman, previously the Head of Fixed Income at TCW, is President and CEO of TCW. Marc Stern, previously President and CEO, is the Chairman of the newly formed TCW Board of Managers and will continue to work in close partnership with Lippman.


Morgan Stanley Inst Opportunity Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.




INS19


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSOakmark Equity & Income Moderate Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5



Oakmark Equity & Income Moderate Allocation Organization Effective April 17, 2013, research analysts Colin Hudson, Edward Wojciechowski, and Matthew Logan became co-managers. They join existing manager Clyde McGregor, who has been at the helm since inception. McGregor co-managed the investment option with Edward Studzinski from 2000 to January 2012, when Studzinski retired.


Oppenheimer Capital Appreciation Large Growth Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Oppenheimer Capital Appreciation Large Growth Organization Effective June 29, 2012, Michael Kotlarz became co-manager of this investment option. Kotlarz joins existing manager Julie Van Cleave.


Oppenheimer Global Opportunities World Stock Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


PIMCO Mortgage-Backed Securities Intermediate-Term Bond Organization Effective January 25, 2013, Michael Cudzil joins Daniel Hyman as a portfolio manager, replacing W. Scott Simon.


Pioneer Ibbotson Moderate Allocation Moderate Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Pioneer Ibbotson Moderate Allocation Moderate Allocation Organization Effective July 1, 2012, Paul Arnold was added as co-manager and Peng Chen was removed. Arnold joins remaining co-managers Brian Huckstep and Scott Wentsel.


PNC Mid Cap Value Mid-Cap Value Organization Effective February 2013, a new team of five managers is responsible for this investment option. Gordon Johnson is the lead portfolio manager. The previous management team has left the firm.




INS20


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSRoyce Pennsylvania Mutual Small Growth Performance 4th quartile rank relative to category on at least 3 out of the 5



Russell LifePoints Balanced Strategy Moderate Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Russell LifePoints Growth Strategy Aggressive Allocation Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


T. Rowe Price New Era Natural Resources Organization Effective September 30, 2013, Shawn Driscoll will succeed Tim Parker as lead portfolio manager and chairman of this investment option's Investment Advisory Committee. Driscoll and Parker will work closely together during the transition period starting April 29, 2013, when T. Rowe Price announced the change. Tim Parker, who took over as manager on June 30, 2010, is leaving the firm to pursue other opportunities.


TCW Dividend Focused Large Value Organization Effective February 6, 2013, TCW management and The Carlyle Group have completed the acquisition of TCW from Société Générale. The announcement of an agreement between TCW management and The Carlyle Group about the transaction was first made in August 2012. As a result of the transaction, TCW became an independent company and approximately 40% employee owned. David Lippman, previously the Head of Fixed Income at TCW, is President and CEO of TCW. Marc Stern, previously President and CEO, is the Chairman of the newly formed TCW Board of Managers and will continue to work in close partnership with Lippman.


UBS US Allocation Moderate Allocation Organization Effective July 31, 2012, David Buckle is no longer a portfolio manager for this investment option. Jon Adams, Anreask Koester and Curt Custard remain as managers. Effective July 2011, Aaron Balsom is no longer a portfolio manager for this investment option. Effective October 2009, Aaron Balsam and Andreas Koester were added as portfolio managers.




INS21


INVESTMENT OPTION NAME ASSET CLASS MONITOR ISSUE SUMMARY OF ISSUE DATE ACTIONSVanguard Total Bond Market Index Intermediate-Term Bond Organization Effective first quarter 2013, Joshua Barrickman replaced co-manager

Gregory Davis. Barrickman joins existing manager Ken Volpert. Mar-13 Monitor performance and strategy for three

quarters from the date the change was implemented or finalized.

Wells Fargo Advantage Spec SmCp Val Small Value Performance 4th quartile rank relative to category on at least 3 out of the 5 following performance criteria: PrecisionAlpha and Risk, and 1-, 3- and 5-year trailing returns.


Western Asset Core Bond Intermediate-Term Bond Investment Policy Effective August 1, 2012, this investment option is now allowed to purchase debt securities rated below Baa or BBB in connection with a merger or other extraordinary transaction.


Westwood SmallCap Value Small Blend Legal On November 5, 2012, Westwood issued its Statement of Defence denying AGF’s allegations, along with a counterclaim against AGF and certain AGF officers. Westwood’s counterclaim alleges that AGF, along with an officer and director of AGF, purposefully defamed Westwood and the Westwood officers named in their Statement of Claim. Effective August 2012, Westwood, along with certain officers and employees of Westwood, was named in a lawsuit filed by AGF Investments Inc. The suit is related to the hiring of Westwood’s new Global and Emerging Markets investment team that is based in Toronto. In the suit, AGF, the prior employer of a number of the team members, alleges that the former employees violated their duties to AGF by leaving their employment.

Sep-12 Continue to monitor the investment option’s and the firm’s legal situation.

Glossary of Terms

Alpha: The measure of returns of a fund that can not be attributed to the performance of the market. In other words, it shows how the manager performed if the market’s return was zero. The higher the number the more return added by the manager. A negative number indicates the manager did not contribute any performance above the performance of the market.

Peer Group: Mesirow Financial's grouping of funds based on a proprietary process utilizing returns based style analysis that distinguishes Style Pure from Multi-Style Managers.

Precision Alpha®: Mesirow Financial's propietary measure of alpha. The process differs from traditional alpha measures by 1) more accurately grouping similar strategies (style pure and multi style managers), 2) increasing the likelihood that multi-style managers are included in the analysis, and 3) accounting for statistical confidence to better differentiate skill from luck.

Precision Alpha® Return Score: Based on the rank of each fund's Precision Alpha within its Peer Group; Funds with higher Precision Alpha Return Scores and higher Precision Alpha are desirable.

Quartile Rankings: Based on the Precision Return and Risk Scores in the Peer Group or Morningstar Category Rank, where first quartile = 1% - 25%; second quartile = 26% - 50%; third quartile = 51% - 75%; and fourth quartile = 76% - 100%.

Information Ratio: Calculated by taking the Precision Alpha and dividing it by the tracking error, it gives the sense of how much excess return a fund provides for each unit of risk.

Precision Alpha® Risk Score: Based on the reverse rank of each fund's Information Ratio within its Peer Group; Fund with higher Information Ratios and consequently lower Precision Alpha Risk scores are desirable.

Category: Morningstar Category based on holdings data.

Morningstar Category Rank: A fund’s total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1.

The Mesirow Financial Investment Strategies Group is a division of Mesirow Financial Investment Management Inc. The information provided herein is for informational purposes only and should not be construed as a recommendation to purchase or sell any particular security or investment vehicle(s) offered by Mesirow Financial Investment Management, Inc. (MFIM) or affiliates of MFIM. The information contained herein has been obtained form sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. Any opinions expressed are subject to change without notice. Other Mesirow Financial affiliates may receive fees for selling or advising on the purchase or sale of products mentioned herein. Additionally, Mesirow Financial affiliates may also receive fees paid by manufacturers or distributors of said products in connection to other professional services provided by the applicable Mesirow Financial affiliate. The sale or advice provided is in no way related or contingent upon the payment received for these other services. It should not be assumed that any recommendations incorporated herein will be profitable or will equal past performance. Mesirow Financial does not provide legal or tax advice. Investment advisory services provided through Mesirow Financial Investment Management, Inc., a SEC-registered investment advisor. Advisory Fees are described in Mesirow Financial Investment Management Inc.’s Part II of the Form ADV. Mesirow Financial refers to Mesirow Financial Holdings, Inc. and its divisions, subsidiaries and affiliates. The Mesirow Financial name and logo are registered service marks of Mesirow Financial Holdings, Inc. © 2013, Mesirow Financial Holdings, Inc. All rights reserved.

www.mesirowfinancial.com

Investment Management | Global Markets | Insurance Services | Consulting Services

http://www.mesirowfinancial.com/#www.mesirowfinancial.com�

Documents

Mesirow Financial POLICE Report - · PDF fileThe Mesirow Financial POLICE Report is a proprietary watch list which identifies current and potential ... Invesco American Franchise