Quarterly Investment Review - fcps.edu · Fairfax County Public Schools ... • Past performance is a noisy filter for crafting expectations about future performance. ... (Part Five

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Fairfax County Public Schools | Third Quarter 2016

Quarterly Investment Review

I Executive Summary Page 1

II Total Plan Page 11

III U.S. Fixed Income Page 13

IV Target Date Page 23

V U.S. Equity Page 48

VI International Equity Page 65

VII Market Environment Page 70

VIII Fee Analysis Page 81

IX Appendix Page 83

X Disclaimers and Notes Page 90

Table of Contents

Executive Summary

Page 1

What Batting Average Should Investors Expect from Active Managers?

To clients of Aon Hewitt Investment Consulting: In professional baseball, a player who gets a hit in three out of every ten at-bats is considered great, despite the fact that this implies failing more often than not. More broadly, skilled people sometimes fail in nearly every challenging endeavor, and investing is no different. It can be insightful to consider what is a reasonable batting average to expect from an active manager, and we can explore this topic with a simple formula. For a certain investment manager, if we believe the manager is skilled, then we’ll assume that it is expected to add 1% return over the benchmark; alternatively, if we believe the manager is average, then we’ll assume it is expected to lag the benchmark by 1% (net of fees and trading costs). But expected performance is never guaranteed, so let’s also assume 4% risk around these expected results. The table below shows the likelihood of outperforming over different horizons: Investors can glean very useful insight from this simple analysis: • Active management is not easy. Even skilled managers have batting averages that are only slightly above 0.500. • Past performance is a noisy filter for crafting expectations about future performance. Skilled managers can underperform, and average

managers can outperform. • The common practice of relying heavily on three-year performance in hiring and firing managers will likely lead to poor decisions.

Running an active portfolio allows the possibility of improving results, but it is a difficult endeavor. It is critical to establish reasonable expectations and be thoughtful about incorporating both qualitative and quantitative methods for evaluating managers, as simplistic approaches based purely on historical performance are likely to lead to mistakes.

Aon Hewitt Investment Consulting

1 Assume risk is measured as the annual tracking error relative to the benchmark.

Horizon (years) Likelihood of Outperforming (skilled)

Likelihood of Outperforming (average)

1 60% 40%

3 67% 33%

10 79% 21%

44 95% 5%

Page 2

AHIC Thought Leadership Highlights

White Papers

All Investors: Global Invested Capital Market Link

All Investors ex-DC: Fallen Angels - Capitalizing Upon an Attractive Segment of the High Yield Market Link

All Investors ex-DC: Risk Parity – Looking at Risk Through a Different Lens Link

DB & DC: Hot Topics in Retirement and Financial Well-Being Link

DB & DC: Real Deal Study Link

Private DB: Pension Funding Strategy: Considerations for Prefunding a Pension Plan Link

DC: If You Offer It, Participants Will Use It (Roth Usage in DC Plans) Link

DC: Final Fiduciary Regulations – Overview for Plan Sponsors Link

Oil and Gas Industry: Oil and Gas Retirement Benchmarking Reports Link

Healthcare Industry: Redefining Retirement in the Health Care Industry (Part Five of Five Part Series) Link

Current Topics of Interest

Private DB: Life Expectancy Assumptions for Pension Plans – More Volatility Ahead? Link

Private DB: U.S. Corporate Pension Liability Hedging Views Link

DC: 2016 Universe Benchmarks – Research Highlights Link

DC: Capital Preservation in DC Plans Deserves a Second Look Link

Aon Hewitt Retirement and Investment Blog

https://retirementandinvestmentblog.aon.com/

Events

Replay recent webinars or find information on the upcoming webinar “What Are Your Employees Thinking? Understanding the Financial Mindset” Link Aon Hewitt | Retirement and Investment Proprietary and Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company.

Page 3

http://respond.aonhewitt.com/global-invested-wp?utm_source=2016wplp&utm_medium=elq-lp&utm_campaign=2016-ret-wp-series

http://respond.aonhewitt.com/fallen-angels-wp?utm_source=2016wplp&utm_medium=elq-lp&utm_campaign=2016-ret-wp-series

http://respond.aonhewitt.com/risk-parity-whitepaper?s=lp

http://www.aon.com/human-capital-consulting/thought-leadership/retirement/2016-hot-topics-retirement.jsp?utm_source=2016htlp&utm_medium=relatedlink2016web&utm_campaign=optin

http://www.aon.com/human-capital-consulting/thought-leadership/retirement/the-real-deal-2015.jsp

http://respond.aonhewitt.com/pension-funding-strategy-download?utm_source=2016wplp&utm_medium=elq-lp&utm_campaign=2016-ret-wp-series

https://retirementandinvestmentblog.aon.com/getattachment/20efc142-725a-44f8-8a45-892bd04a85a4/Roth_Usage_in_DC_Plans_FINAL-(1).pdf.aspx

http://respond.aonhewitt.com/fiduciary-regulations-download?utm_source=clientalert&utm_medium=email&utm_campaign=2016-ret-wp-series

http://www.aon.com/human-capital-consulting/thought-leadership/retirement/oil-gas-retirement-reports.jsp

http://respond.aonhewitt.com/redefining-retirement-part-5?utm_source=2015wplp&utm_medium=elq-lp&utm_campaign=2016-ret-wp-series

https://retirementandinvestmentblog.aon.com/BlogHome/Blog/September-2016/Life-Expectancy-Assumptions-for-Pension-Plans-%E2%80%93-Mo.aspx

https://retirementandinvestmentblog.aon.com/getattachment/ac84e638-a2fd-4c6e-8aa0-fea5dcb9fd4b/Corporate-Pension-Liability-Hedging-Views-08-31-2016-v5.pdf.aspx

https://khub.aon.net/_layouts/Aon.KH.Extensions/DownloadFileFormPath.ashx?FileRef=https://khub.aon.net/KHAonHewLib/2016_Universe_Benchmarks_Highlights.pdf

https://retirementandinvestmentblog.aon.com/BlogHome/Blog/September-2016/Capital-Preservation-in-DC-Plans-Deserves-a-Second.aspx

https://retirementandinvestmentblog.aon.com/

http://www.aon.com/human-capital-consulting/thought-leadership/retirement/2016-retirement-webinar-series.jsp?utm_source=2016weblp&utm_medium=ri-tl&utm_campaign=optin

Third Quarter

Year-to-

Date 1-Year 3-Year1 5-Year1 10-Year1

Equity

MSCI All Country World IMI 5.57% 7.00% 12.25% 5.24% 10.87% 4.63%

MSCI All Country World 5.30% 6.60% 11.96% 5.17% 10.63% 4.34%

Dow Jones U.S. Total Stock Market 4.44% 8.15% 14.93% 10.39% 16.30% 7.49%

Russell 3000 4.40% 8.18% 14.96% 10.44% 16.36% 7.37%

S&P 500 3.85% 7.84% 15.43% 11.16% 16.37% 7.24%

Russell 2000 9.05% 11.46% 15.47% 6.71% 15.82% 7.07%

MSCI All Country World ex-U.S. IMI 7.05% 6.08% 9.81% 0.62% 6.37% 2.47%

MSCI All Country World ex-U.S. 6.91% 5.82% 9.26% 0.18% 6.04% 2.16%

MSCI EAFE 6.43% 1.73% 6.52% 0.48% 7.39% 1.82%

MSCI EAFE (Local Currency) 6.04% -1.61% 4.63% 5.30% 11.21% 2.20%

MSCI Emerging Markets 9.03% 16.02% 16.78% -0.56% 3.03% 3.95%

Fixed Income

Bloomberg Barclays Global Aggregate 0.82% 9.85% 8.83% 2.13% 1.73% 4.26%

Bloomberg Barclays Aggregate 0.46% 5.80% 5.19% 4.02% 3.08% 4.79%

Bloomberg Barclays Long Gov't -0.29% 14.61% 13.02% 11.07% 5.48% 7.97%

Bloomberg Barclays Long Credit 2.26% 16.51% 15.73% 9.53% 7.05% 7.63%

Bloomberg Barclays Long Gov't/Credit 1.24% 15.74% 14.65% 10.08% 6.32% 7.84%

Bloomberg Barclays US TIPS 0.96% 7.27% 6.58% 2.41% 1.93% 4.48%

Bloomberg Barclays High Yield 5.55% 15.11% 12.73% 5.29% 8.34% 7.71%

Citi Group Non-U.S. WGBI 0.60% 14.18% 12.61% 1.21% 0.24% 3.94%

JP Morgan EMBI Global (Emerging Markets) 3.73% 15.04% 16.82% 7.44% 7.42% 7.62%

Commodities

Bloomberg Commodity Index -3.86% 8.87% -2.58% -12.34% -9.37% -5.33%

Goldman Sachs Commodity Index -4.15% 5.30% -12.21% -22.16% -12.61% -9.04%

Hedge Funds

HFRI Fund-Weighted Composite2 2.96% 4.19% 4.93% 3.16% 4.43% 3.78%

HFRI Fund of Funds2 2.53% -0.11% 0.62% 2.20% 3.19% 1.78%

Real Estate

NAREIT U.S. Equity REITS -1.43% 11.75% 19.86% 14.22% 15.91% 6.35%

NCREIF NFI - ODCE3 2.05% 6.50% 10.06% 12.42% 12.38% 6.01%

Private Equity

Burgiss Private iQ Global Private Equity4 -0.47% -0.47% 4.30% 10.74% 9.96% 10.12%

Infrastructure

Macquarie Global Infrastructure - North America -1.94% 22.63% 18.63% 9.74% 10.88% 7.85%

MSCI Indices show net returns.

All other indices show total returns.1 Periods are annualized.2 Latest 5 months of HFR data are estimated by HFR and may change in the future.3 Third quarter results are preliminary.4 Source: Burgiss Private iQ. Benchmark is as of 03/31/2016

Periods Ending 09/30/2016

Returns of the Major Capital Markets

Market Highlights

Page 4

Market Highlights

Page 5

Allocation

MarketValue($000)

%

Performance(%)

1Quarter

YearTo

Date

1Year

3Years

5Years

7Years

10Years

Total 457(b) Plan 178,719.25 100.00

U.S. Fixed Income 49,116.64 27.48

Great West Portfolio Fund 29,506.88 16.51 0.48 1.48 1.99 1.91 1.93 2.15 2.50

50% B Bar Int. Agg/50% 90 day T-Bill 0.19 2.13 1.87 1.58 1.32 1.78 2.61

90 Day U.S. Treasury Bill 0.07 0.19 0.18 0.09 0.08 0.09 0.89

PIMCO Total Return Adm 19,455.69 10.89 1.16 (20) 5.00 (86) 5.42 (45) 3.24 (85) 3.92 (20) 4.39 (53) 5.72 (3)

Blmbg. Barc. U.S. Aggregate 0.46 (75) 5.80 (59) 5.19 (58) 4.03 (45) 3.08 (68) 4.10 (63) 4.79 (48)

PIMCO Inflation Response MultiAsst Inst 154.07 0.09 1.63 (79) 12.04 (10) 10.78 (22) 1.28 (82) 1.52 (93) - -

PIMCO IRMA Benchmark 0.13 (92) 17.14 (1) 15.60 (4) 1.75 (79) 0.52 (95) 3.05 (93) 3.02 (92)

Target Date 13,050.82 7.30

TRP Retirement 2005 424.04 0.24 2.76 (17) 7.64 (19) 9.54 (13) 5.07 (17) 7.65 (14) 6.92 (16) 5.30 (26)

TRP Retirement 2005 Index 2.25 (49) 6.21 (47) 8.13 (25) 5.00 (21) 7.17 (24) 6.56 (20) 4.85 (38)

TRP Retirement 2010 394.72 0.22 3.00 (23) 7.82 (3) 9.98 (2) 5.43 (4) 8.50 (1) 7.53 (4) 5.40 (-)

TRP Retirement 2010 Index 2.53 (65) 6.38 (56) 8.70 (38) 5.33 (9) 8.04 (18) 7.22 (16) 5.01 (-)

TRP Retirement 2015 1,768.57 0.99 3.44 (17) 7.68 (5) 10.49 (1) 5.88 (3) 9.62 (1) 8.31 (1) 5.71 (-)


TRP Retirement 2020 3,248.92 1.82 4.03 (6) 7.62 (12) 11.09 (1) 6.29 (3) 10.65 (1) 8.98 (1) 5.89 (1)


TRP Retirement 2025 2,578.23 1.44 4.55 (3) 7.56 (16) 11.57 (2) 6.64 (2) 11.49 (3) 9.51 (2) 6.04 (-)


TRP Retirement 2030 999.62 0.56 4.93 (5) 7.43 (22) 11.93 (9) 6.91 (2) 12.24 (2) 9.98 (2) 6.17 (1)


TRP Retirement 2035 1,882.11 1.05 5.29 (9) 7.22 (62) 12.14 (18) 7.05 (3) 12.72 (2) 10.26 (1) 6.24 (-)


Fairfax County Public Schools

Asset Allocation & Performance

As of September 30, 2016

Page 6


Asset Allocation & Performance


Allocation

MarketValue($000)

%

Performance(%)

1Quarter

YearTo

Date

1Year

3Years

5Years

7Years

10Years

TRP Retirement 2040 628.71 0.35 5.59 (4) 7.04 (65) 12.29 (18) 7.13 (3) 12.98 (1) 10.40 (1) 6.34 (1)


TRP Retirement 2045 479.71 0.27 5.60 (10) 7.06 (69) 12.30 (25) 7.13 (7) 12.97 (2) 10.40 (1) 6.34 (-)


TRP Retirement 2050 337.88 0.19 5.58 (8) 6.99 (65) 12.30 (24) 7.11 (8) 12.96 (5) 10.39 (1) -

TRP Retirement 2050 Index 4.70 (58) 7.50 (41) 12.65 (14) 7.16 (7) 12.47 (14) 10.13 (3) -

TRP Retirement 2055 308.31 0.17 5.59 (16) 7.00 (66) 12.26 (31) 7.13 (14) 12.95 (7) 10.40 (-) -

TRP Retirement 2055 Index 4.70 (67) 7.50 (41) 12.65 (12) 7.16 (12) 12.47 (27) 10.13 (-) -

U.S. Equity 97,690.10 54.66

BlackRock S&P 500 Stock 23,828.78 13.33 3.84 (29) 7.79 (19) 15.37 (22) 11.10 (17) 16.27 (21) 13.07 (19) 7.15 (22)

S&P 500 Index 3.85 (19) 7.84 (7) 15.43 (7) 11.16 (1) 16.37 (1) 13.17 (1) 7.24 (4)

Dodge & Cox Stock 21,948.05 12.28 8.79 (2) 9.55 (9) 14.53 (37) 8.91 (66) 17.10 (9) 12.30 (43) 5.52 (86)

S&P 500 Index 3.85 (53) 7.84 (27) 15.43 (19) 11.16 (12) 16.37 (18) 13.17 (14) 7.24 (26)

Vanguard Mid Cap Index 27,628.82 15.46 5.19 (41) 8.90 (39) 12.65 (38) 9.92 (16) 16.54 (22) 14.10 (13) 8.23 (29)

Vanguard Spliced Mid Cap Index 5.21 (40) 8.92 (39) 12.68 (37) 9.96 (15) 16.58 (21) 14.15 (13) 8.24 (28)

Baron Growth Inst 24,284.44 13.59 2.59 (86) 6.39 (34) 7.88 (55) 4.89 (80) 14.21 (46) 12.73 (39) -

Baron Growth Rtl 2.52 (88) 6.18 (39) 7.60 (57) 4.63 (81) 13.92 (50) 12.44 (46) 7.56 (50)

Russell Midcap Growth Index 4.59 (47) 6.84 (25) 11.24 (21) 8.90 (23) 15.85 (28) 13.90 (14) 8.51 (35)

International Equity 17,341.84 9.70

Artisan International Inv 17,341.84 9.70 3.74 (91) -1.32 (96) 5.39 (59) 0.30 (52) 10.07 (5) 5.99 (10) 3.58 (17)

MSCI EAFE Index (Net) 6.43 (35) 1.73 (59) 6.52 (42) 0.48 (48) 7.39 (47) 4.24 (36) 1.82 (55)

MSCI AC World ex USA Index (Net) 6.91 (22) 5.82 (14) 9.26 (20) 0.18 (53) 6.04 (81) 3.66 (57) 2.16 (41)

Page 7

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

U.S. Fixed Income

Great West Portfolio Fund 2.88 3.26 3.42 3.37 2.67 2.55 2.11 1.53 1.86 2.00

50% B Bar Int. Agg/50% 90 day T-Bill 4.67 5.97 3.50 3.28 3.11 2.99 1.80 -0.48 2.06 0.62

90 Day U.S. Treasury Bill 4.76 4.91 2.10 0.17 0.13 0.08 0.08 0.05 0.04 0.03

PIMCO Total Return Adm 3.74 (85) 8.82 (1) 4.56 (23) 13.53 (30) 8.57 (16) 3.91 (95) 10.10 (3) -2.16 (72) 4.43 (81) 0.47 (37)

Blmbg. Barc. U.S. Aggregate 4.34 (41) 6.97 (19) 5.24 (19) 5.93 (84) 6.54 (68) 7.84 (15) 4.21 (76) -2.02 (64) 5.97 (33) 0.55 (27)

IM U.S. Broad Market Core Fixed Income (MF) Median 4.24 6.16 0.61 10.77 7.08 6.98 6.06 -1.64 5.76 0.32

PIMCO Inflation Response MultiAsst Inst - - - - - - 9.56 (65) -9.29 (100) 1.57 (73) -6.77 (78)

PIMCO IRMA Benchmark 5.27 (98) 10.35 (30) -14.42 (14) 17.32 (89) 13.49 (42) 3.82 (14) 4.83 (92) -11.77 (100) -0.46 (83) -7.12 (79)

IM Flexible Portfolio (MF) Median 12.11 7.15 -28.81 25.12 12.56 -1.55 11.02 11.99 3.76 -3.41

Target Date

TRP Retirement 2005 11.50 (7) 6.67 (25) -22.24 (82) 24.55 (17) 11.51 (17) 1.43 (65) 11.35 (17) 9.74 (22) 4.72 (40) -0.75 (37)

TRP Retirement 2005 Index 11.29 (12) 6.79 (23) -19.10 (68) 16.91 (63) 10.22 (42) 2.38 (43) 9.52 (42) 9.86 (21) 5.48 (25) -0.10 (19)

IM Mixed-Asset Target Alloc Consv (MF) Median 8.02 5.65 -17.05 18.88 9.92 2.07 9.06 7.51 4.21 -1.13

TRP Retirement 2010 12.84 (10) 6.65 (48) -26.71 (80) 27.95 (4) 12.70 (4) 0.54 (55) 12.44 (6) 11.93 (8) 4.99 (23) -0.76 (59)


IM Mixed-Asset Target 2010 (MF) Median 12.02 6.42 -24.07 22.97 10.88 0.90 9.64 9.24 4.49 -0.67

TRP Retirement 2015 13.73 (-) 6.75 (-) -30.22 (86) 31.35 (1) 13.79 (4) -0.32 (81) 13.81 (1) 15.18 (2) 5.37 (31) -0.58 (33)

TRP Retirement 2015 Index 13.44 (-) 6.85 (-) -26.61 (33) 22.08 (65) 12.57 (27) 1.09 (42) 11.94 (25) 14.97 (3) 6.30 (16) -0.28 (17)

IM Mixed-Asset Target 2015 (MF) Median - - -27.68 25.09 11.75 0.93 11.02 11.50 4.87 -0.74

TRP Retirement 2020 14.66 (9) 6.73 (50) -33.48 (82) 34.19 (1) 14.74 (3) -1.20 (84) 15.01 (1) 18.05 (2) 5.63 (37) -0.31 (25)


IM Mixed-Asset Target 2020 (MF) Median 12.34 6.68 -28.49 24.76 12.79 0.19 11.78 12.98 5.13 -0.80

TRP Retirement 2025 15.44 (-) 6.81 (-) -35.90 (87) 36.29 (1) 15.37 (1) -2.06 (71) 16.00 (1) 20.78 (3) 5.84 (38) -0.17 (13)

TRP Retirement 2025 Index 15.21 (-) 6.84 (-) -32.24 (36) 26.15 (66) 14.12 (26) -0.22 (25) 14.00 (22) 20.01 (4) 7.06 (9) -0.56 (31)

IM Mixed-Asset Target 2025 (MF) Median - - -33.66 27.71 13.67 -1.05 13.27 16.08 5.52 -1.14

TRP Retirement 2030 16.14 (-) 6.83 (56) -37.79 (74) 37.99 (1) 16.01 (3) -2.70 (70) 16.82 (1) 23.09 (4) 6.05 (36) -0.02 (6)

TRP Retirement 2030 Index 16.12 (-) 6.80 (56) -34.16 (45) 27.43 (70) 14.72 (32) -0.79 (21) 14.85 (20) 22.13 (8) 7.29 (7) -0.73 (40)

IM Mixed-Asset Target 2030 (MF) Median - 7.46 -36.24 28.91 13.90 -2.19 14.02 18.20 5.66 -1.05

TRP Retirement 2035 16.18 (-) 6.81 (-) -38.88 (71) 39.04 (1) 16.34 (1) -3.26 (61) 17.35 (1) 24.86 (3) 6.07 (38) 0.13 (4)



TRP Retirement 2040 16.24 (-) 6.77 (63) -38.85 (72) 39.07 (1) 16.51 (9) -3.49 (43) 17.55 (1) 25.93 (8) 6.18 (38) 0.17 (3)

TRP Retirement 2040 Index 16.36 (-) 6.74 (64) -35.35 (14) 28.59 (84) 15.17 (38) -1.46 (9) 15.66 (40) 24.73 (20) 7.43 (7) -1.01 (40)

IM Mixed-Asset Target 2040 (MF) Median - 7.33 -37.62 30.66 14.70 -3.71 15.19 21.74 5.85 -1.23

TRP Retirement 2045 16.15 (-) 6.84 (-) -38.83 (53) 39.10 (1) 16.44 (10) -3.47 (31) 17.62 (1) 25.93 (5) 6.14 (35) 0.17 (3)




Calendar Year Performance


Returns for periods greater than one year are annualized.Returns are expressed as percentages.

Page 8


Calendar Year Performance


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

TRP Retirement 2050 - 6.82 (-) -38.80 (58) 38.92 (1) 16.41 (15) -3.36 (26) 17.55 (4) 25.90 (12) 6.19 (36) 0.19 (4)

TRP Retirement 2050 Index - 6.74 (-) -35.35 (6) 28.59 (85) 15.17 (39) -1.46 (5) 15.66 (40) 24.73 (28) 7.43 (8) -0.98 (40)


TRP Retirement 2055 - 6.82 (-) -38.89 (-) 38.97 (-) 16.41 (-) -3.35 (16) 17.60 (1) 25.86 (12) 6.18 (40) 0.18 (5)

TRP Retirement 2055 Index - 6.74 (-) -35.35 (-) 28.59 (-) 15.17 (-) -1.46 (1) 15.66 (60) 24.73 (29) 7.43 (10) -0.98 (47)

IM Mixed-Asset Target 2055+ (MF) Median - - - - - -4.33 15.73 23.18 5.72 -1.24

U.S. Equity

BlackRock S&P 500 Stock 15.60 (46) 5.36 (36) -37.01 (30) 26.49 (18) 14.92 (36) 1.98 (41) 15.84 (33) 32.21 (28) 13.61 (14) 1.35 (19)

S&P 500 Index 15.79 (1) 5.49 (11) -37.00 (29) 26.46 (23) 15.06 (1) 2.11 (8) 16.00 (3) 32.39 (3) 13.69 (1) 1.38 (9)

IM S&P 500 Index (MF) Median 15.56 5.28 -37.06 26.39 14.82 1.96 15.77 32.11 13.47 1.23

Dodge & Cox Stock 18.53 (5) 0.14 (94) -43.31 (91) 31.27 (25) 13.49 (54) -4.08 (89) 22.01 (2) 40.55 (1) 10.40 (71) -4.49 (93)

S&P 500 Index 15.79 (28) 5.49 (62) -37.00 (56) 26.46 (55) 15.06 (33) 2.11 (30) 16.00 (44) 32.39 (47) 13.69 (20) 1.38 (29)

IM U.S. Large Cap Core Equity (MF) Median 14.36 6.35 -36.53 27.05 13.71 1.06 15.50 32.17 11.86 -0.14

Vanguard Mid Cap Index 13.78 (41) 6.22 (60) -41.76 (68) 40.51 (34) 25.67 (32) -1.96 (42) 16.01 (43) 35.17 (51) 13.78 (11) -1.33 (37)

Vanguard Spliced Mid Cap Index 13.75 (41) 6.19 (60) -41.80 (68) 40.49 (34) 25.69 (32) -1.91 (41) 16.04 (42) 35.21 (51) 13.83 (10) -1.28 (37)

IM U.S. Mid Cap Equity (MF) Median 12.69 8.99 -39.43 35.02 23.83 -2.99 15.31 35.21 8.04 -2.61

Baron Growth Inst - - - - 24.32 (53) 1.51 (13) 16.74 (21) 38.69 (26) 4.66 (79) -4.06 (80)

Baron Growth Rtl 15.50 (20) 6.59 (84) -39.18 (28) 34.24 (66) 24.01 (54) 1.24 (14) 16.43 (25) 38.32 (27) 4.40 (81) -4.31 (81)

Russell Midcap Growth Index 10.66 (43) 11.43 (75) -44.32 (65) 46.29 (27) 26.38 (41) -1.65 (35) 15.81 (33) 35.74 (50) 11.90 (13) -0.20 (46)

IM U.S. Mid Cap Growth Equity (MF) Median 9.48 17.44 -41.60 41.03 24.38 -3.21 14.50 35.66 7.37 -0.72

International Equity

Artisan International Inv 25.56 (62) 19.73 (10) -46.96 (98) 39.77 (12) 5.91 (72) -7.26 (14) 25.39 (5) 25.18 (9) -0.97 (10) -3.85 (78)

MSCI EAFE Index (Net) 26.34 (44) 11.17 (70) -43.38 (66) 31.78 (50) 7.75 (55) -12.14 (48) 17.32 (65) 22.78 (17) -4.90 (37) -0.81 (38)

MSCI AC World ex USA Index (Net) 26.65 (41) 16.65 (19) -45.53 (86) 41.45 (7) 11.15 (21) -13.71 (74) 16.83 (70) 15.29 (83) -3.87 (25) -5.66 (86)

IM International Large Cap Equity (MF) Median 26.05 12.47 -42.31 31.65 8.23 -12.39 18.59 20.07 -5.36 -1.69

Returns for periods greater than one year are annualized.Returns are expressed as percentages.

Page 9

Great West Portfolio Fund PIMCO Total Return Adm PIMCO Inflation Response MultiAsst Inst

TRP Retirement 2005 TRP Retirement 2010 TRP Retirement 2015



TRP Retirement 2050 TRP Retirement 2055 BlackRock S&P 500 Stock

Dodge & Cox Stock Vanguard Mid Cap Index Baron Growth Inst

Artisan International Inv

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

An

nu

aliz

ed

Re

turn

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0Annualized Standard Deviation


Risk Profile

3 Years Ending September 30, 2016

Page 10

Total Plan

Page 11

September 30, 2016 : $178,719,247 June 30, 2016 : $173,855,928

Market Value($M)

Allocation(%)

U.S. Fixed Income 49.1 27.5¢£

Target Date 13.1 7.3¢£

U.S. Equity 97.7 54.7¢£

International Equity 17.3 9.7¢£

Loan Fund 1.5 0.9¢£

Market Value($M)

Allocation(%)

U.S. Fixed Income 48.3 27.8¢£

Target Date 12.3 7.1¢£

U.S. Equity 94.5 54.3¢£

International Equity 17.3 10.0¢£

Loan Fund 1.5 0.9¢£

Fairfax County Public Schools Total Plan

Asset Allocation by Asset Class


Page 12

U.S. Fixed Income

Page 13

-1.6

-0.8

0.0

0.8

1.6

2.4

3.2

4.0

4.8

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

Great West Portfolio Fund 0.48 (48) 1.48 (34) 1.99 (33) 1.91 (41) 1.93 (55) 2.50 (95)¢

50% B Bar Int. Agg/50% 90 day T-Bill 0.19 (97) 2.13 (4) 1.87 (59) 1.58 (65) 1.32 (97) 2.61 (90)�

90 Day U.S. Treasury Bill 0.07 (100) 0.19 (100) 0.18 (100) 0.09 (100) 0.08 (100) 0.89 (100)p

5th Percentile 0.54 1.83 2.23 2.27 2.40 3.44

1st Quartile 0.51 1.52 2.03 1.97 2.17 3.24

Median 0.48 1.43 1.91 1.84 1.99 2.85

3rd Quartile 0.37 1.03 1.34 1.20 1.41 2.67

95th Percentile 0.25 1.02 1.33 1.20 1.41 2.49

Population 25 25 25 25 25 21

Great West Portfolio Fund

Peer Group Analysis


IM U.S. GIC/Stable Value (SA+CF)

Parentheses contain percentile rankings.

Page 14

Return Summary

Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years

Account Information


PIMCO Total Return Adm Performance Summary

PIMCO Total Return Adm

PIMCO Total Return Adm Blmbg. Barc. U.S. Aggregate

0.0

3.0

6.0

9.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

0.5

5.8

5.2

4.0

3.1

4.8

1.2

5.05.4

3.2

3.9

5.7

Product Name : PIMCO:Tot Rtn;Admn (PTRAX)

Fund Family : PIMCO

Ticker : PTRAX

Peer Group : IM U.S. Broad Market Core Fixed Income (MF)

Benchmark : Blmbg. Barc. U.S. Aggregate

Fund Inception : 09/08/1994

Portfolio Manager : Mather/Kiesel/Worah

Total Assets : $5,033.00 Million

Total Assets Date : 09/30/2016

Gross Expense : 0.72%

Net Expense : 0.72%

Turnover : 478%

Quarterly Out Performance Quarterly Under Performance

0.0%

2.0%

4.0%

-2.0 %

-4.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16

PIMCO Total Return Adm Benchmark

1.00

1.04

1.08

1.12

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.04

Page 15


Peer Group Analysis


IM U.S. Broad Market Core Fixed Income (MF)

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

PIMCO Total Return Adm 1.16 (20) 5.00 (86) 5.42 (45) 3.24 (85) 3.92 (20) 5.72 (3)¢

Blmbg. Barc. U.S. Aggregate 0.46 (75) 5.80 (59) 5.19 (58) 4.03 (45) 3.08 (68) 4.79 (48)�

5th Percentile 1.60 7.29 7.00 4.91 4.49 5.64

1st Quartile 1.05 6.49 5.96 4.26 3.83 5.19

Median 0.71 5.96 5.30 3.99 3.42 4.76

3rd Quartile 0.45 5.47 4.83 3.61 2.93 4.44

95th Percentile 0.09 4.02 3.36 2.42 2.23 3.05

Page 16

5 Years Historical Statistics

Rolling 5 Years Standard DeviationAnnualized Return vs. Annualized Standard Deviation

5 Years


PIMCO Total Return Adm Risk Profile


PIMCO Total Return Adm Blmbg. Barc. U.S. Aggregate

0.0

0.9

1.8

2.7

3.6

4.5

5.4

6.3

7.2

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16PIMCO Total Return Adm Blmbg. Barc. U.S. Aggregate

Citigroup 3 Month T-Bill

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Re

turn

(%)

0.0 0.7 1.4 2.1 2.8 3.5 4.2 4.9 5.6Risk (Standard Deviation %)

ActiveReturn

TrackingError

InformationRatio

R-SquaredSharpeRatio

Alpha Beta ReturnStandardDeviation

ActualCorrelation

PIMCO Total Return Adm 0.84 1.86 0.45 0.73 1.10 0.47 1.12 3.92 3.51 0.85

Blmbg. Barc. U.S. Aggregate 0.00 0.00 N/A 1.00 1.13 0.00 1.00 3.08 2.66 1.00

Citigroup 3 Month T-Bill -3.00 2.66 -1.13 0.01 N/A 0.07 0.00 0.08 0.03 0.12

Page 17

PIMCO Total Return Fund

Credit Quality Allocation As of 09/30/2016 Fixed Income Characteristics As of 09/30/2016

Average Coupon 3.07%

Effective Maturity 8.18 Years

Yield-to-Maturity 3.64%

Effective Duration 5.63 Years

Holdings Count 4,329

Average Credit Quality AA

Maturity Distribution As of 09/30/2016 Sector Allocation As of 09/30/2016

Mutual Fund Attributes


13%

8%

29%

40%

22%

-13%

-25% -15% -5% 5% 15% 25% 35% 45%

20+ Years

10-20 Years

5-10 Years

3-5 Years

1-3 Years

<1 Year

-28%

0%

4%

9%

16%

45%

55%

-50% -30% -10% 10% 30% 50% 70%

Net Cash Equivalents

Non-U.S. Developed

Other

Emerging Markets

Credit

U.S. Government-Related

Mortgage

9%

5%

8%

3%

75%

0% 20% 40% 60% 80%

<BBB

BBB

A

AA

AAA

Page 18

Return Summary

Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception

Account Information


PIMCO Inflation Response MultiAsst Inst Performance Summary

PIMCO Inflation Response MultiAsst Inst


PIMCO IRMA Benchmark

0.0

8.0

16.0

24.0

32.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

0.1

17.115.6

1.70.5

3.01.6

12.010.8

1.3 1.5

Product Name : PIMCO:Infl Rsp MA;Inst (PIRMX)

Fund Family : PIMCO

Ticker : PIRMX

Peer Group : IM Flexible Portfolio (MF)

Benchmark : PIMCO IRMA Benchmark


Portfolio Manager : Mihir Worah/Johnson

Total Assets : $996.30 Million



Net Expense : 0.86%

Turnover : 290%


0.0%

3.0%

6.0%

-3.0 %

-6.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16 PIMCO Inflation Response MultiAsst Inst

Benchmark

0.96

1.02

1.08

1.14

1.20

8/11 2/12 8/12 2/13 8/13 2/14 8/14 2/15 8/15 2/16 9/16

1.06

Page 19


Peer Group Analysis


IM Flexible Portfolio (MF)

-12.0

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

PIMCO Inflation Response MultiAsst Inst 1.63 (79) 12.04 (10) 10.78 (22) 1.28 (82) 1.52 (93) N/A¢

PIMCO IRMA Benchmark 0.13 (92) 17.14 (1) 15.60 (4) 1.75 (79) 0.52 (95) 3.02 (92)�

5th Percentile 6.08 13.95 14.95 8.63 11.54 7.25

1st Quartile 4.16 8.97 10.48 5.45 9.42 5.63

Median 3.25 6.52 8.13 4.05 7.23 4.86

3rd Quartile 1.78 4.01 5.52 2.07 4.70 3.91

95th Percentile -1.14 -0.18 -0.40 -3.17 0.10 2.56

Page 20


Rolling 1 Year Standard DeviationAnnualized Return vs. Annualized Standard Deviation

3 Years


PIMCO Inflation Response MultiAsst Inst Risk Profile




0.0

3.0

6.0

9.0

12.0

15.0

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16PIMCO Inflation Response MultiAsst Inst



-1.2

-0.6

0.0

0.6

1.2

1.8

2.4

3.0

Re

turn

(%)

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0Risk (Standard Deviation %)

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

PIMCO Inflation Response MultiAsst Inst -0.56 3.43 -0.16 0.84 0.20 -0.10 0.78 1.28 7.27 0.92

PIMCO IRMA Benchmark 0.00 0.00 N/A 1.00 0.23 0.00 1.00 1.75 8.56 1.00


Page 21




Asset Allocation As of 03/31/2016

0.0% 50.0% 100.0% 150.0% 200.0%-50.0 %-100.0 %

Cash

Convertibles

Other

Equities

Fixed Income

-27.8 %

0.0%

0.3%

11.3%

116.3%

Fund Characteristics As of 03/31/2016

Total Securities 477

Avg. Market Cap $23,342.64 Million

P/E 38.57

P/B 3.66

Div. Yield 3.27%

Annual EPS 37.91

5Yr EPS 27.17

3Yr EPS Growth 27.94

Top Ten Securities As of 03/31/2016

PIMCO Emerging Markets Currency Fund;Institutional 10.95 %

Vanguard REIT Index Fund;ETF 1.23 %

Vanguard FTSE Emerging Markets Fund ETF 0.56 %

Simon Property Group Inc ORD 0.56 %

Equity Residential ORD 0.52 %

AvalonBay Communities Inc ORD 0.44 %

Essex Property Trust Inc 0.41 %

Prologis Inc ORD 0.39 %

Camden Property Trust 0.34 %

Boston Properties Inc ORD 0.32 %

Page 22

Target Date

Page 23

Asset Allocation for T. Rowe Price Retirement Funds


0%

20%

40%

60%

80%

100%

TargetBalanced

Target2005

Target2010

Target2015

Target2020

Target2025

Target2030

Target2035

Target2040

Target2045

Target2050

Target2055

Target2060

Fixed Income US Equity Non-US Equity Specialty Funds*

________________________________

* Specialty Funds include T. Rowe Price Real Assets Fund

Page 24

Asset Allocation: T. Rowe Price Retirement Funds

Balanced Fund

2005 Fund

2010 Fund

2015 Fund

2020 Fund

2025 Fund

2030 Fund

2035 Fund

2040 Fund

2045 Fund

2050 Fund

2055 Fund

2060 Fund

Fixed Income 59.8% 61.1% 55.7% 46.9% 37.4% 29.5% 22.1% 16.2% 11.1% 10.0% 10.0% 9.9% 10.0%

T. Rowe Price Inflation Focused Bond 30.0% 18.0% 15.5% 11.4% 6.4% 3.5% 1.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

T. Rowe Price New Income 20.6% 29.7% 27.8% 24.6% 21.4% 18.0% 14.3% 11.3% 7.8% 6.9% 6.9% 6.8% 6.9%

T. Rowe Price High Yield 3.3% 4.7% 4.4% 3.9% 3.4% 2.8% 2.2% 1.7% 1.2% 1.1% 1.1% 1.1% 1.1%

T. Rowe Price Intl Bond 2.8% 4.0% 3.8% 3.4% 2.9% 2.5% 1.9% 1.5% 1.0% 1.0% 1.0% 0.9% 1.0%

T. Rowe Price EM Bond 3.2% 4.5% 4.2% 3.7% 3.3% 2.7% 2.2% 1.7% 1.1% 1.0% 1.0% 1.0% 1.0%

U.S. Equity 26.1% 25.3% 28.9% 34.7% 41.0% 46.3% 51.2% 55.0% 58.4% 59.1% 59.1% 59.1% 59.1%

T. Rowe Price Value 0.0% 0.0% 0.0% 2.0% 6.3% 9.9% 13.2% 16.1% 18.4% 18.9% 18.9% 18.9% 18.8%

T. Rowe Price Equity Index 500 20.5% 20.0% 22.8% 22.5% 18.7% 15.4% 12.5% 9.5% 7.6% 7.2% 7.2% 7.2% 7.2%

T. Rowe Price Growth Stock 0.0% 0.0% 0.0% 2.9% 7.4% 11.2% 14.8% 17.7% 20.1% 20.6% 20.6% 20.6% 20.6%

T. Rowe Price Mid-Cap Value 1.5% 1.4% 1.7% 1.9% 2.3% 2.6% 2.8% 3.0% 3.2% 3.2% 3.2% 3.2% 3.2%

T. Rowe Price Mid-Cap Growth 1.3% 1.3% 1.4% 1.8% 2.1% 2.3% 2.5% 2.7% 2.9% 2.9% 2.9% 3.0% 2.9%

T. Rowe Price Small-Cap Value 0.9% 0.9% 1.0% 1.3% 1.5% 1.7% 1.9% 2.1% 2.3% 2.3% 2.3% 2.3% 2.3%

T. Rowe Price Small-Cap Stock 1.1% 1.0% 1.2% 1.3% 1.6% 1.8% 2.0% 2.2% 2.3% 2.4% 2.4% 2.4% 2.4%

T. Rowe Price New Horizons 0.8% 0.7% 0.8% 1.0% 1.1% 1.3% 1.4% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6%

Non-U.S. Equity 12.7% 12.3% 14.0% 16.6% 19.5% 22.0% 24.3% 26.1% 27.6% 28.1% 28.1% 28.1% 28.1%

T. Rowe Price Intl Growth & Income 3.6% 3.5% 3.9% 4.7% 5.5% 6.2% 6.8% 7.3% 7.8% 7.9% 7.9% 7.9% 7.9%

T. Rowe Price Overseas Stock 3.7% 3.6% 4.1% 4.9% 5.7% 6.5% 7.1% 7.7% 8.1% 8.2% 8.2% 8.3% 8.2%

T. Rowe Price International Stock 3.4% 3.3% 3.7% 4.4% 5.2% 5.9% 6.5% 7.0% 7.4% 7.5% 7.5% 7.5% 7.5%

T. Rowe Price Emerging Markets Stock 2.0% 2.0% 2.2% 2.6% 3.1% 3.5% 3.8% 4.1% 4.4% 4.4% 4.4% 4.4% 4.4%

Real Assets 1.4% 1.3% 1.5% 1.7% 2.0% 2.3% 2.5% 2.7% 2.8% 2.9% 2.9% 2.9% 2.9%

T. Rowe Price Real Assets 1.4% 1.3% 1.5% 1.7% 2.0% 2.3% 2.5% 2.7% 2.8% 2.9% 2.9% 2.9% 2.9%

MM/Short Term Investment 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Summit Cash Reserves 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%


Page 25

Return Summary


Account Information


TRP Retirement 2005 Performance Summary

TRP Retirement 2005

TRP Retirement 2005 TRP Retirement 2005 Index

0.0

4.0

8.0

12.0

16.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

2.2

6.2

8.1

5.0

7.2

4.9

2.8

7.6

9.5

5.1

7.6

5.3

Product Name : T Rowe Price Ret:2005 (TRRFX)

Fund Family : T Rowe Price Associates Inc

Ticker : TRRFX

Peer Group : IM Mixed-Asset Target Alloc Consv (MF)

Benchmark : TRP Retirement 2005 Index


Portfolio Manager : Clark/Lee




Net Expense : 0.60%

Turnover : 18%


0.0%

0.8%

1.6%

2.4%

-0.8 %

-1.6 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16

TRP Retirement 2005 Benchmark

0.98

1.00

1.02

1.04

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 26



TRP Retirement 2005


0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Convertibles

Other

Cash

Equities

Fixed Income

0.0%

0.5%

1.5%

37.9%

60.1%


Total Securities 18


P/E 10.11

P/B 1.82

Div. Yield 1.03%

Annual EPS 3.24

5Yr EPS 3.26

3Yr EPS Growth 3.93


T Rowe Price New Income Fund 30.21 %

T Rowe Price Equity Index 500 Fund 19.86 %

T Rowe Price Limited Duration Inflation Foc Bd 17.96 %

T Rowe Price Emerging Markets Bond Fund 4.43 %

T Rowe Price International Bond Fund 4.39 %

T Rowe Price High Yield Fund 4.29 %

T Rowe Price Overseas Stock Fund 3.59 %

T Rowe Price International Growth & Income Fd;I 3.53 %

T Rowe Price International Stock Fund 3.20 %

T Rowe Price Emerging Markets Stock Fund 2.07 %

Sector/Quality Allocation As of 06/30/2016

0.0% 4.0% 8.0% 12.0% 16.0%

Utilities

Telecommunication Services

Materials

Energy

Consumer Staples

Health Care

Consumer Discretionary

Information Technology

Industrials

Financials

1.3%

1.3%

1.7%

2.2%

4.3%

4.6%

4.7%

4.8%

4.9%

8.0%

Page 27

Return Summary


Account Information



TRP Retirement 2010


0.0

4.0

8.0

12.0

16.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

2.5

6.4

8.7

5.3

8.0

5.0

3.0

7.8

10.0

5.4

8.5

5.4

Product Name : T Rowe Price Ret:2010 (TRRAX)


Ticker : TRRAX

Peer Group : IM Mixed-Asset Target 2010 (MF)







Net Expense : 0.59%

Turnover : 14%


0.0%

0.9%

1.8%

2.7%

-0.9 %

-1.8 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 28



TRP Retirement 2010


0.0% 15.0% 30.0% 45.0% 60.0% 75.0%

Convertibles

Other

Cash

Equities

Fixed Income

0.0%

0.4%

1.6%

43.7%

54.4%


Total Securities 17


P/E 11.62

P/B 2.08

Div. Yield 1.19%

Annual EPS 3.74

5Yr EPS 3.73

3Yr EPS Growth 4.48













0.0% 5.0% 10.0% 15.0% 20.0%

Utilities


Materials

Energy

Consumer Staples

Health Care



Industrials

Financials

1.5%

1.5%

2.0%

2.6%

4.9%

5.3%

5.4%

5.4%

5.6%

9.4%

Page 29

Return Summary


Account Information



TRP Retirement 2015


0.0

4.0

8.0

12.0

16.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

2.9

6.6

9.5

5.8

9.2

5.3

3.4

7.7

10.5

5.9

9.6

5.7

Product Name : T Rowe Price Ret:2015 (TRRGX)


Ticker : TRRGX








Net Expense : 0.62%

Turnover : 16%


0.0%

1.0%

2.0%

3.0%

-1.0 %

-2.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 30



TRP Retirement 2015


0.0% 15.0% 30.0% 45.0% 60.0% 75.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.3%

1.8%

46.0%

51.9%


Total Securities 19


P/E 14.06

P/B 2.51

Div. Yield 1.39%

Annual EPS 4.88

5Yr EPS 4.47

3Yr EPS Growth 5.54











T Rowe Price Growth Stock Fund 2.96 %


0.0% 6.0% 12.0% 18.0% 24.0%


Utilities

Materials

Energy

Consumer Staples

Health Care

Industrials



Financials

1.7%

1.8%

2.3%

2.9%

5.7%

6.4%

6.5%

6.5%

6.7%

11.1%

Page 31

Return Summary


Account Information



TRP Retirement 2020


0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

3.4

6.9

10.4

6.3

10.1

5.5

4.0

7.6

11.1

6.3

10.6

5.9

Product Name : T Rowe Price Ret:2020 (TRRBX)


Ticker : TRRBX








Net Expense : 0.66%

Turnover : 16%


0.0%

1.0%

2.0%

3.0%

-1.0 %

-2.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

1.06

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 32



TRP Retirement 2020


0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.3%

2.0%

36.6%

61.1%


Total Securities 19


P/E 16.86

P/B 2.98

Div. Yield 1.62%

Annual EPS 6.27

5Yr EPS 5.23

3Yr EPS Growth 6.74





T Rowe Price Value Fund 6.64 %








0.0% 8.0% 16.0% 24.0% 32.0%


Utilities

Materials

Energy

Consumer Staples

Industrials

Health Care



Financials

1.8%

2.2%

2.7%

3.2%

6.6%

7.5%

7.7%

7.8%

8.1%

13.1%

Page 33

Return Summary


Account Information



TRP Retirement 2025


0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

3.8

7.1

11.1

6.6

11.0

5.64.6

7.6

11.6

6.6

11.5

6.0

Product Name : T Rowe Price Ret:2025 (TRRHX)


Ticker : TRRHX








Net Expense : 0.69%

Turnover : 15%


0.0%

2.0%

4.0%

-2.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

1.06

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 34



TRP Retirement 2025


0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Convertibles

Cash

Other

Fixed Income

Equities

0.0%

2.0%

10.7%

28.8%

58.5%


Total Securities 19


P/E 16.62

P/B 3.08

Div. Yield 1.50%

Annual EPS 6.82

5Yr EPS 5.67

3Yr EPS Growth 7.21






T Rowe Price International Growth & Income Fd 6.36 %







0.0% 8.0% 16.0% 24.0% 32.0%

Utilities


Energy

Materials

Consumer Staples

Industrials

Health Care



Financials

1.5%

1.8%

2.5%

2.7%

6.0%

7.3%

7.3%

7.9%

8.7%

12.3%

Page 35

Return Summary


Account Information



TRP Retirement 2030


0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

4.1

7.3

11.7

6.9

11.7

5.84.9

7.4

11.9

6.9

12.2

6.2

Product Name : T Rowe Price Ret:2030 (TRRCX)


Ticker : TRRCX








Net Expense : 0.72%

Turnover : 16%


0.0%

2.0%

4.0%

-2.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

1.06

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 36



TRP Retirement 2030


0.0% 25.0% 50.0% 75.0% 100.0% 125.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.2%

2.4%

21.9%

75.5%


Total Securities 19


P/E 21.26

P/B 3.71

Div. Yield 1.97%

Annual EPS 8.48

5Yr EPS 6.44

3Yr EPS Growth 8.64










T Rowe Price Small-Cap Value Fund 3.49 %

T Rowe Price Mid-Cap Value Fund 2.83 %


0.0% 10.0% 20.0% 30.0% 40.0%


Utilities

Materials

Energy

Consumer Staples

Industrials


Health Care


Financials

2.0%

2.7%

3.3%

3.8%

7.9%

9.1%

9.7%

9.8%

10.4%

16.2%

Page 37

Return Summary


Account Information



TRP Retirement 2035


0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

4.4

7.4

12.2

7.0

12.2

5.85.3

7.2

12.1

7.0

12.7

6.2

Product Name : T Rowe Price Ret:2035 (TRRJX)


Ticker : TRRJX








Net Expense : 0.74%

Turnover : 15%


0.0%

2.0%

4.0%

-2.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

1.06

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 38



TRP Retirement 2035


0.0% 25.0% 50.0% 75.0% 100.0% 125.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.1%

2.5%

16.0%

81.3%


Total Securities 18


P/E 23.05

P/B 4.01

Div. Yield 2.11%

Annual EPS 9.40

5Yr EPS 6.93

3Yr EPS Growth 9.42













0.0% 10.0% 20.0% 30.0% 40.0%


Utilities

Materials

Energy

Consumer Staples

Industrials


Health Care


Financials

2.0%

3.0%

3.6%

4.0%

8.5%

9.7%

10.5%

10.7%

11.3%

17.4%

Page 39

Return Summary


Account Information



TRP Retirement 2040


0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

4.7

7.5

12.6

7.1

12.5

5.95.6

7.0

12.3

7.1

13.0

6.3

Product Name : T Rowe Price Ret:2040 (TRRDX)


Ticker : TRRDX








Net Expense : 0.76%

Turnover : 15%


0.0%

2.0%

4.0%

-2.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

1.06

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 40



TRP Retirement 2040


0.0% 50.0% 100.0% 150.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.1%

2.7%

11.1%

86.2%


Total Securities 18


P/E 24.54

P/B 4.26

Div. Yield 2.23%

Annual EPS 10.15

5Yr EPS 7.34














0.0% 10.0% 20.0% 30.0% 40.0%


Utilities

Materials

Energy

Consumer Staples

Industrials


Health Care


Financials

2.1%

3.2%

3.8%

4.2%

8.9%

10.2%

11.1%

11.4%

12.1%

18.5%

Page 41

Return Summary


Account Information



TRP Retirement 2045


0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

4.7

7.5

12.7

7.2

12.5

5.95.6

7.1

12.3

7.1

13.0

6.3

Product Name : T Rowe Price Ret:2045 (TRRKX)


Ticker : TRRKX








Net Expense : 0.76%

Turnover : 14%


0.0%

2.0%

4.0%

-2.0 %

-4.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

1.06

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 42



TRP Retirement 2045


0.0% 50.0% 100.0% 150.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.1%

2.7%

10.2%

87.1%


Total Securities 18


P/E 24.81

P/B 4.30

Div. Yield 2.25%

Annual EPS 10.29

5Yr EPS 7.42












T Rowe Price Real Assets Fund 3.26 %


0.0% 10.0% 20.0% 30.0% 40.0%


Utilities

Materials

Energy

Consumer Staples

Industrials


Health Care


Financials

2.1%

3.2%

3.8%

4.2%

9.0%

10.3%

11.2%

11.5%

12.2%

18.7%

Page 43

Return Summary


Account Information



TRP Retirement 2050


0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

4.7

7.5

12.7

7.2

12.5

5.6

7.0

12.3

7.1

13.0

Product Name : T Rowe Price Ret:2050 (TRRMX)


Ticker : TRRMX








Net Expense : 0.76%

Turnover : 13%


0.0%

2.0%

4.0%

-2.0 %

-4.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

1.06

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 44



TRP Retirement 2050


0.0% 50.0% 100.0% 150.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.1%

2.7%

10.2%

87.1%


Total Securities 18


P/E 24.82

P/B 4.30

Div. Yield 2.25%

Annual EPS 10.29

5Yr EPS 7.42














0.0% 10.0% 20.0% 30.0% 40.0%


Utilities

Materials

Energy

Consumer Staples

Industrials


Health Care


Financials

2.1%

3.2%

3.8%

4.2%

9.0%

10.3%

11.2%

11.5%

12.2%

18.7%

Page 45

Return Summary


Account Information



TRP Retirement 2055


0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

4.7

7.5

12.7

7.2

12.5

5.6

7.0

12.3

7.1

12.9

Product Name : T Rowe Price Ret:2055 (TRRNX)


Ticker : TRRNX

Peer Group : IM Mixed-Asset Target 2055+ (MF)







Net Expense : 0.76%

Turnover : 11%


0.0%

2.0%

4.0%

-2.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16


0.98

1.00

1.02

1.04

1.06

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.02

Page 46



TRP Retirement 2055


0.0% 50.0% 100.0% 150.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.1%

2.7%

10.1%

87.2%


Total Securities 18


P/E 24.83

P/B 4.31

Div. Yield 2.25%

Annual EPS 10.29

5Yr EPS 7.43














0.0% 10.0% 20.0% 30.0% 40.0%


Utilities

Materials

Energy

Consumer Staples

Industrials


Health Care


Financials

2.1%

3.2%

3.8%

4.2%

9.0%

10.4%

11.2%

11.5%

12.2%

18.7%

Page 47

U.S. Equity

Page 48

Return Summary


Account Information


BlackRock S&P 500 Stock Performance Summary

BlackRock S&P 500 Stock

BlackRock S&P 500 Stock S&P 500 Index

0.0

6.0

12.0

18.0

24.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

3.9

7.8

15.4

11.2

16.4

7.2

3.8

7.8

15.4

11.1

16.3

7.1

Product Name : BlackRock:S&P500 Idx;K (WFSPX)

Fund Family : BlackRock Fund Advisors

Ticker : WFSPX

Peer Group : IM S&P 500 Index (MF)

Benchmark : S&P 500 Index


Portfolio Manager : Team Managed




Net Expense : 0.04%

Turnover : 2%


0.0%

0.1%

-0.1 %

-0.2 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16

BlackRock S&P 500 Stock Benchmark

0.99

1.00

1.01

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.00

Page 49


Peer Group Analysis


IM S&P 500 Index (MF)

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

20.0

23.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

BlackRock S&P 500 Stock 3.84 (29) 7.79 (19) 15.37 (22) 11.10 (17) 16.27 (21) 7.15 (22)¢

S&P 500 Index 3.85 (19) 7.84 (7) 15.43 (7) 11.16 (1) 16.37 (1) 7.24 (4)�

5th Percentile 3.89 7.85 15.44 11.13 16.34 7.21

1st Quartile 3.85 7.77 15.34 11.04 16.24 7.12

Median 3.81 7.70 15.24 10.96 16.16 7.05

3rd Quartile 3.78 7.59 15.10 10.81 16.00 6.96

95th Percentile 3.70 7.37 14.79 10.58 15.77 6.68

Page 50



5 Years


BlackRock S&P 500 Stock Risk Profile


BlackRock S&P 500 Stock S&P 500 Index

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

32.0

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16BlackRock S&P 500 Stock S&P 500 Index


-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Re

turn

(%)

0.0 3.0 6.0 9.0 12.0 15.0 18.0Risk (Standard Deviation %)

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

BlackRock S&P 500 Stock -0.09 0.03 -3.14 1.00 1.41 -0.09 1.00 16.27 11.12 1.00

S&P 500 Index 0.00 0.00 N/A 1.00 1.42 0.00 1.00 16.37 11.12 1.00

Citigroup 3 Month T-Bill -15.78 11.12 -1.42 0.00 N/A 0.08 0.00 0.08 0.03 -0.05

Page 51





0.0% 50.0% 100.0% 150.0%-50.0 %

Cash

Fixed Income

Convertibles

Other

Equities

-3.5 %

0.0%

0.0%

7.5%

96.1%




P/E 25.97

P/B 5.75

Div. Yield 2.49%

Annual EPS 12.48

5Yr EPS 8.92



BlackRock Cash Funds: Institutional;SL Agency 3.42 %

Apple Inc ORD 2.78 %

Microsoft Corp ORD 2.14 %

Exxon Mobil Corp ORD 2.07 %

Johnson & Johnson ORD 1.77 %

General Electric Co ORD 1.54 %

Amazon.com Inc ORD 1.47 %

Berkshire Hathaway Inc ORD 1.44 %

AT&T Inc ORD 1.41 %

Facebook Inc ORD 1.40 %


0.0% 10.0% 20.0% 30.0% 40.0%

Materials


Utilities

Energy

Consumer Staples

Industrials


Health Care

Financials


2.1%

2.6%

3.2%

6.7%

10.5%

11.0%

12.7%

13.2%

17.0%

17.0%

Page 52

Return Summary


Account Information


Dodge & Cox Stock Performance Summary

Dodge & Cox Stock

Dodge & Cox Stock S&P 500 Index

0.0

8.0

16.0

24.0

32.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

3.9

7.8

15.4

11.2

16.4

7.28.8 9.5

14.5

8.9

17.1

5.5

Product Name : Dodge & Cox Stock (DODGX)

Fund Family : Dodge & Cox

Ticker : DODGX

Peer Group : IM U.S. Large Cap Core Equity (MF)

Benchmark : S&P 500 Index


Portfolio Manager : Team Managed




Net Expense : 0.52%

Turnover : 15%


0.0%

4.0%

8.0%

-4.0 %

-8.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16

Dodge & Cox Stock Benchmark

0.96

1.02

1.08

1.14

1.20

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.03

Page 53


Peer Group Analysis

Dodge & Cox Stock

IM U.S. Large Cap Core Equity (MF)

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

Dodge & Cox Stock 8.79 (2) 9.55 (9) 14.53 (37) 8.91 (66) 17.10 (9) 5.52 (86)¢

S&P 500 Index 3.85 (53) 7.84 (27) 15.43 (19) 11.16 (12) 16.37 (18) 7.24 (26)�

5th Percentile 7.41 10.93 17.48 11.92 17.36 8.51

1st Quartile 4.80 7.91 14.96 10.61 16.19 7.24

Median 3.92 6.68 13.49 9.37 15.26 6.60

3rd Quartile 2.65 4.98 11.31 8.36 13.83 5.80

95th Percentile 0.96 2.08 6.86 6.07 12.08 5.02

Page 54



5 Years


Dodge & Cox Stock Risk Profile

Dodge & Cox Stock

Dodge & Cox Stock S&P 500 Index

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16Dodge & Cox Stock S&P 500 Index


-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Re

turn

(%)


ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Dodge & Cox Stock 0.82 3.78 0.22 0.92 1.31 -0.66 1.09 17.10 12.69 0.96

S&P 500 Index 0.00 0.00 N/A 1.00 1.42 0.00 1.00 16.37 11.12 1.00


Page 55



Dodge & Cox Stock


0.0% 50.0% 100.0% 150.0%

Convertibles

Other

Fixed Income

Cash

Equities

0.0%

0.0%

0.1%

1.2%

98.7%


Total Securities 67


P/E 22.56

P/B 2.80

Div. Yield 2.29%

Annual EPS -4.08

5Yr EPS 5.94

3Yr EPS Growth 6.36


Wells Fargo & Co ORD 3.57 %

Capital One Financial Corp ORD 3.51 %

Bank of America Corp ORD 3.21 %

Hewlett Packard Enterprise Co ORD 3.20 %

Comcast Corp ORD 3.05 %

Time Warner Inc ORD 3.01 %

Novartis AG DR 2.94 %

Charles Schwab Corp ORD 2.91 %

Charter Communications Inc ORD 2.89 %

Microsoft Corp ORD 2.88 %


0.0% 15.0% 30.0% 45.0% 60.0%

Materials


Consumer Staples

Non Classified Equity

Industrials

Energy


Health Care


Financials

0.9%

0.9%

1.2%

2.9%

6.3%

8.5%

12.9%

17.6%

21.5%

26.0%

Page 56

Return Summary


Account Information


Vanguard Mid Cap Index Performance Summary

Vanguard Mid Cap Index


Vanguard Spliced Mid Cap Index

0.0

6.0

12.0

18.0

24.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

5.2

8.9

12.7

10.0

16.6

8.2

5.2

8.9

12.6

9.9

16.5

8.2

Product Name : Vanguard Md-Cp Idx;Inst (VMCIX)

Fund Family : Vanguard Group Inc

Ticker : VMCIX

Peer Group : IM U.S. Mid Cap Equity (MF)

Benchmark : Vanguard Spliced Mid Cap Index


Portfolio Manager : Donald M. Butler




Net Expense : 0.07%

Turnover : 15%


0.0%

0.1%

-0.1 %

-0.2 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16

Vanguard Mid Cap Index Benchmark

0.99

1.00

1.01

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.00

Page 57


Peer Group Analysis


IM U.S. Mid Cap Equity (MF)

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

Vanguard Mid Cap Index 5.19 (41) 8.90 (39) 12.65 (38) 9.92 (16) 16.54 (22) 8.23 (29)¢

Vanguard Spliced Mid Cap Index 5.21 (40) 8.92 (39) 12.68 (37) 9.96 (15) 16.58 (21) 8.24 (28)�

5th Percentile 9.62 14.95 19.49 11.00 17.84 9.88

1st Quartile 6.03 10.32 14.09 9.16 16.48 8.54

Median 4.62 7.58 11.05 7.51 15.03 7.30

3rd Quartile 3.51 4.50 6.97 5.73 13.37 6.08

95th Percentile 1.44 -0.02 0.97 1.61 10.33 4.21

Page 58



5 Years


Vanguard Mid Cap Index Risk Profile




0.0

6.0

12.0

18.0

24.0

30.0

36.0

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16Vanguard Mid Cap Index



-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Re

turn

(%)


ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Vanguard Mid Cap Index -0.03 0.06 -0.52 1.00 1.29 -0.04 1.00 16.54 12.44 1.00

Vanguard Spliced Mid Cap Index 0.00 0.00 N/A 1.00 1.30 0.00 1.00 16.58 12.43 1.00


Page 59





0.0% 50.0% 100.0% 150.0%-50.0 %

Other

Convertibles

Fixed Income

Cash

Equities

-0.2 %

0.0%

0.0%

0.3%

99.9%




P/E 29.19

P/B 4.88

Div. Yield 2.14%

Annual EPS 4.42

5Yr EPS 10.80



NVIDIA Corp ORD 0.96 %

Fidelity National Information Services Inc ORD 0.80 %

Equinix Inc ORD 0.79 %

Newell Brands Inc ORD 0.78 %

Ross Stores Inc ORD 0.77 %

Edwards Lifesciences Corp ORD 0.75 %

Electronic Arts Inc ORD 0.74 %

Fiserv Inc ORD 0.71 %

Tyson Foods Inc ORD 0.70 %

ConAgra Foods Inc ORD 0.63 %


0.0% 10.0% 20.0% 30.0% 40.0%


Materials

Energy

Utilities

Health Care



Consumer Staples

Industrials

Financials

1.2%

4.3%

4.9%

5.1%

8.4%

12.1%

12.5%

14.1%

17.1%

19.8%

Page 60

Return Summary

Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception

Account Information


Baron Growth Inst Performance Summary

Baron Growth Inst

Baron Growth Inst

Russell Midcap Growth Index

0.0

6.0

12.0

18.0

24.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

4.6

6.8

11.2

8.9

15.8

8.5

2.6

6.47.9

4.9

14.2

Product Name : Baron Growth;Inst (BGRIX)

Fund Family : Baron Funds

Ticker : BGRIX

Peer Group : IM U.S. Mid Cap Growth Equity (MF)

Benchmark : Russell Midcap Growth Index


Portfolio Manager : Ronald Baron




Net Expense : 1.04%

Turnover : 7%


0.0%

5.0%

10.0%

-5.0 %

-10.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16

Baron Growth Inst Benchmark

0.90

0.96

1.02

1.08

1.14

5/09 2/10 11/10 8/11 5/12 2/13 11/13 8/14 5/15 2/16 9/16

0.91

Page 61

-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

Baron Growth Inst 2.59 (86) 6.39 (34) 7.88 (55) 4.89 (80) 14.21 (46) N/A¢

Baron Growth Rtl* 2.52 (88) 6.18 (39) 7.60 (57) 4.63 (81) 13.92 (50) 7.56 (50)�

Russell Midcap Growth Index 4.59 (47) 6.84 (25) 11.24 (21) 8.90 (23) 15.85 (28) 8.51 (35)p

5th Percentile 9.24 9.96 16.07 11.33 17.82 10.39

1st Quartile 5.97 6.81 10.70 8.48 15.95 8.81

Median 4.51 5.24 8.57 6.49 13.92 7.50

3rd Quartile 3.19 2.90 5.74 5.32 12.48 6.18

95th Percentile 1.63 -0.59 0.97 0.90 10.01 3.95

Baron Growth Inst

Peer Group Analysis


IM U.S. Small Cap Growth Equity (MF)

*Alternate share class shown for a historical perspective.

Page 62



5 Years


Baron Growth Inst Risk Profile

Baron Growth Inst

Baron Growth Inst Russell Midcap Growth Index

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16

Baron Growth Inst

Russell Midcap Growth Index


-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Re

turn

(%)


ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Baron Growth Inst -1.52 4.70 -0.32 0.87 1.15 0.37 0.88 14.21 12.19 0.93

Russell Midcap Growth Index 0.00 0.00 N/A 1.00 1.20 0.00 1.00 15.85 12.93 1.00


Page 63



Baron Growth Inst


0.0% 50.0% 100.0% 150.0%

Fixed Income

Convertibles

Other

Cash

Equities

0.0%

0.0%

1.5%

1.6%

96.9%


Total Securities 65


P/E 36.94

P/B 5.85

Div. Yield 2.15%

Annual EPS 6.57

5Yr EPS 12.56



Vail Resorts Inc ORD 4.70 %

Arch Capital Group Ltd ORD 4.65 %

Gartner Inc ORD 4.53 %

FactSet Research Systems Inc ORD 4.25 %

CoStar Group Inc ORD 3.60 %

Middleby Corp ORD 3.32 %

Gaming and Leisure Properties Inc ORD 3.21 %

SS&C Technologies Holdings Inc ORD 2.85 %

ANSYS Inc ORD 2.76 %

IDEXX Laboratories Inc ORD 2.75 %


0.0% 15.0% 30.0% 45.0% 60.0%

Non Classified Equity


Health Care

Consumer Staples


Industrials

Financials


0.0%

1.3%

6.1%

12.6%

13.7%

14.5%

21.4%

27.2%

Page 64

International Equity

Page 65

Return Summary


Account Information


Artisan International Inv Performance Summary



MSCI EAFE Index (Net)

MSCI AC World ex USA Index (Net)

0.0

6.0

12.0

18.0

-6.0

Re

turn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

6.95.8

9.3

0.2

6.0

2.2

6.4

1.7

6.5

0.5

7.4

1.83.7

-1.3

5.4

0.3

10.1

3.6

Product Name : Artisan:Internatl;Inv (ARTIX)

Fund Family : Artisan Partners LP

Ticker : ARTIX

Peer Group : IM International Large Cap Equity (MF)

Benchmark : MSCI EAFE Index (Net)


Portfolio Manager : Yockey/Euretig/Hamker




Net Expense : 1.17%

Turnover : 45%


0.0%

5.0%

10.0%

15.0%

-5.0 %

-10.0 %

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16

Artisan International Inv Benchmark

0.90

1.00

1.10

1.20

1.30

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16

1.13

Page 66


Peer Group Analysis


IM International Large Cap Equity (MF)

-10.0

-7.0

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

20.0R

etu

rn

1Quarter

YearTo

Date

1Year

3Years

5Years

10Years

Artisan International Inv 3.74 (91) -1.32 (96) 5.39 (59) 0.30 (52) 10.07 (5) 3.58 (17)¢

MSCI EAFE Index (Net) 6.43 (35) 1.73 (59) 6.52 (42) 0.48 (48) 7.39 (47) 1.82 (55)�

5th Percentile 8.78 10.21 12.28 3.34 9.91 4.32

1st Quartile 6.76 4.75 8.28 1.15 8.05 2.99

Median 6.02 1.98 5.90 0.35 7.30 1.89

3rd Quartile 4.64 0.56 3.93 -0.80 6.25 1.52

95th Percentile 3.43 -1.24 1.19 -2.31 3.91 -0.56

Page 67



5 Years


Artisan International Inv Risk Profile


Artisan International Inv MSCI EAFE Index (Net)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 9/16Artisan International Inv MSCI EAFE Index (Net)


-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

15.0

Re

turn

(%)

0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0Risk (Standard Deviation %)

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Artisan International Inv 2.41 5.25 0.46 0.86 0.76 3.29 0.90 10.07 13.70 0.93

MSCI EAFE Index (Net) 0.00 0.00 N/A 1.00 0.57 0.00 1.00 7.39 14.19 1.00


Page 68





0.0% 50.0% 100.0% 150.0%

Other

Convertibles

Fixed Income

Cash

Equities

0.0%

0.0%

1.6%

6.3%

92.1%


Total Securities 74


P/E 24.70

P/B 4.60

Div. Yield 2.28%

Annual EPS 12.36

5Yr EPS 10.11



Medtronic PLC ORD 5.82 %

Nestle SA ORD 5.04 %

Japan Tobacco Inc ORD 4.15 %

AIA Group Ltd ORD 3.35 %

Deutsche Boerse AG ORD 3.18 %

Cognizant Technology Solutions Corp ORD 2.88 %

Aon PLC ORD 2.85 %

NTT Docomo Inc ORD 2.80 %

Danone SA ORD 2.78 %

Unilever PLC ORD 2.72 %

Regional Allocation As of 06/30/2016

0.0% 25.0% 50.0% 75.0% 100.0%

Emerging Asia

Other

North America

Pacific Basin

Europe

2.3%

6.6%

6.9%

17.2%

65.7%

Page 69

Market Environment

Page 70

Global equity markets rose sharply over the quarter. Initially, the equities rallied with markets absorbing the UK’s

decision to leave the EU and economic data pointing to a more positive environment. However, uncertainties around

major central banks policies limited the gains.

Global equity markets returned 5.57% in Q3 2016 with all the regions ending in positive territory. Emerging markets

was the best performer with a return of 8.83% over the quarter as entrenched easy monetary policy across developed

markets helped fuel capital inflows to the region. Equity returns were supported by better than expected economic

data from China over the quarter.

Global Equity Markets

Page 71

Global Equity Markets

The two exhibits on this slide illustrate the percentage that each country/region represents of the global equity market

as measured by the MSCI All Country World IMI Index and the MSCI All Country World ex-U.S. IMI Index.

Page 72

U.S. Equity Markets

The Russell 3000 Index returned 4.40% during the third quarter and returned 14.96% over the one-year period.

During the third quarter, the technology sector was the strongest performer, posting returns of 13.49%. The utilities and

consumer staples sectors were the weakest performers, producing returns of -5.31% and -2.67% respectively.

Performance across the market capitalization spectrum was positive over the quarter. Small cap stocks outperformed

the other segments in Growth and Value stocks. Growth stocks outperformed Value stocks across the capitalizations.

Page 73

U.S. Fixed Income Markets

The Bloomberg Barclays Aggregate Bond Index

returned 0.46% in the third quarter. Corporate bonds

were the strongest performing index segment, returning

the most at 1.41%.

High yield bonds outperformed all the other investment

grade corporate bonds across different credit qualities.

Longest duration bonds outperformed all other bonds in

different maturities.

Page 74

U.S. Fixed Income Markets

The Treasury yield curve shifted upwards over the third quarter with yields rising across the maturities. The yield curve

flattened over the quarter, driven by short maturity bonds rising faster than long maturity bonds.

Expectations of rise in interest rates drove the yields higher.

The 10-year U.S. Treasury yield ended the quarter at 1.60%, 11 basis points higher than its level at the beginning of

the quarter.

The 10-year TIPS yield fell by 9 basis points over the quarter and ended the period at 0.00%.

Page 75

European Fixed Income Markets

In the Eurozone, bond spreads widened during the third quarter of 2016 with core government bond yields falling and

the peripheral government bond yields being mixed. German bund yields continued to be in negative territory and

ended the quarter at -0.19%.

Portuguese bond yields rose as the worried state of its government finances, fragile banking sector and weakening

economy ignited concerns about the country’s credit rating outlook, thus, throwing doubts over its qualification for the

European Central Bank’s asset-purchase program.

Both Italian and Spanish government bond yields declined over the quarter driven by continued weakness in the

banking sector as various top banks performed poorly in the European Banking Authority’s stress tests.

Page 76

Spread (bps) 9/30/2016 6/30/2016 9/30/2015 Quarterly Change (bps) 1-Year Change (bps)

U.S. Aggregate 47 55 59 -8 -12

Long Gov't 3 3 4 0 -1

Long Credit 195 215 230 -20 -35

Long Gov't/Credit 118 130 143 -12 -25

MBS 14 27 31 -13 -17

CMBS 84 98 108 -14 -24

ABS 55 61 69 -6 -14

Corporate 138 156 169 -18 -31

High Yield 480 594 630 -114 -150

Global Emerging Markets 299 345 418 -46 -119

Source: Barclays Live

Credit Spreads

During the third quarter, credit spreads fell across all the areas of the bond market with the exception of Long-term

Government bonds.

High yield spreads (-114 basis points) fell by the most over the quarter, followed by Global Emerging Markets spreads

(-46 basis points) and Long Credit (-20 basis points).

Page 77

Commodities

The Bloomberg Commodity Index fell during the third quarter returning -3.86%.

Over the quarter, the best performing segment was Softs with a return 6.86%.

Livestock was the worst performing sector during the quarter with a return of -21.34%.

Page 78

Currency

As measured through the broad trade weighted U.S. dollar index, the U.S. dollar was almost flat over the quarter.

The US dollar appreciated sharply against the pound but depreciated against the euro and the yen. The pound

weakened on confirmation of Brexit and after the Bank of England (BOE) lowered its official rates to 0.25% (the first

change since March 2009). The yen appreciated sharply against the dollar due to safe haven flows and as the Bank of

Japan (BOJ) kept its interest rate unchanged over the quarter.

Page 79

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CBD Office Sub Office Retail Industrial Multifamily

U.S. Commercial Real Estate Markets

The U.S. real estate sector is in the mature stage of its cycle, with pricing showing signings of peaking over the past year. Cap rates across most property types have reached record lows, driving a

disconnect between sellers’ and buyers’ return expectations. This disconnect is evident in the sector’s bid-ask spreads and highlighted by an adjustment in transaction volume during 2016, down 23% YOY

as of August.

U.S. Core real estate returns YTD continued to moderate in 3Q and are now performing back in line with the sector’s long run average. Registering a still healthy 2.05%* gross of fees this quarter, the

income return (1.12%) again outpaced appreciation (0.94%), illustrating expectations that net income growth will be a larger driver of returns at this mature point in the real estate cycle. The one year return

now stands at 10.07%, well off the sector’s rebound highs, and expected to moderate further. Non-Core investment dollars deployed since the GFC continued to generally perform in line with target

expectations; that said, return expectations for new capital now being deployed has declined slightly as the real estate cycle appears to be reaching for a turning point.

The U.S. REIT sector fell 1.4% in third quarter (FTSE NAREIT Equity REIT Index); resulting in a still robust 11.8% gain year-to-date (YTD). REITs lost ground mid-quarter as a combination of concerns

about interest rate movements, property valuations, and new supply weighed on investors. Operating fundamentals, meanwhile remain healthy, as measured by favorable, but slowing, same-store NOI

growth. U.S. REITs ended the quarter trading at an approximate 7% premium to NAVs. Public valuations remained above Private valuations largely due to sector’s perceived defensive characteristics;

and/or their attractive dividends. Significant volatility is expected to remain in public market pricing medium term.

Underlying real estate fundamentals remained generally healthy in 3Q, albeit showing wider spread signs of moderating. As the supply-demand gap has now largely inverted for most property types,

continued occupancy gains and outsized net operating income growth will become more challenging. Thus downside risk protection is important to incorporate into portfolio strategies before the next

downturn. Preferred equity and debt structures are important considerations to help mitigate medium term cyclical risks.

Overseas, the UK may be signaling a hard Brexit from the European Union, which was originally not forecasted. The long term impact of a hard Brexit on other global regions remains uncertain, but for the

U.S., the dollar continues to rally against the British pound and foreign investors appear to be growing more interested in the U.S. real estate market due to its perceived stability and liquidity. The UK

market has weathered the initial shocks of Brexit, but the long term impact on UK real estate remains undefined.

*Indicates preliminary NFI-ODCE data gross of fees

NOI GROWTH

SOURCE:NCREIF, AON HEWITT 6/30/2016

Page 80

Fee Analysis

Page 81

Fairfax County Public Schools As of September 30, 2016

Peer Group $ Weighted $ Weighted

Median Median Average Average Difference2

U.S FIXED INCOME

Great West Portfolio Fund Stable Value 0.89%3N/A N/A 0.62%4

N/A N/A

PIMCO Total Return Adm US Broad Market Core Fixed 0.72% 0.50% 0.43% 0.54% 0.41% 0.18%

PIMCO Inflation Response MultiAsst Inst Flexible Portfolio 0.86% 0.93% 0.60% 0.99% 0.87% -0.13%

TARGET DATE

T. Rowe Price Retirement 2005 Mixed Asset Target Today50.60% 0.56% 0.49% 0.55% 0.52% 0.05%

T. Rowe Price Retirement 2010 Mixed Asset Target 201050.59% 0.56% 0.58% 0.57% 0.57% 0.02%









T. Rowe Price Retirement 2055 Mixed Asset Target 2055+50.76% 0.70% 0.64% 0.71% 0.71% 0.05%

U.S. EQUITY

BlackRock S&P 500 Stock S&P 500 Index Funds (Passive) 0.04% 0.20% 0.05% 0.27% 0.08% -0.23%

Dodge & Cox Stock U.S. Large Cap Core Equity 0.52% 0.81% 0.57% 0.84% 0.57% -0.32%

Vanguard Mid Cap Index U.S. Mid Cap Equity 0.07% 0.97% 0.75% 0.99% 0.80% -0.92%

Baron Growth Inst U.S. Mid Cap Growth Equity 1.04% 0.99% 0.62% 0.99% 0.75% 0.05%

INTERNATIONAL EQUITY

Artisan International Inv International Equity All6 1.17% 0.99% 0.10% 0.99% 0.74% 0.18%

Fund NameFund's

Expense

Ratio

1 All information, unless noted otherwise, was created using Morningstar audited expense ratio data as of December 31, 2015. Since mutual fund expense ratios do not change frequently, AHIC believes this study to be a relevant comparison for up to a year, at which time the data will be updated. For complete information on AHIC methodologies and additional information on the expense ratio distributions, contact your AHIC consultant. Mutual fund expense peer groups were constructed by Investment Metrics, and are consistent with the peer groups shown in other exhibits comparing performance, risk-metrics and a multitude of other characteristics.

3 In lieu of an expense ratio, Great West assumes a margin of 89 basis points on the Portfolio Fund. This reflects the gross investment yield of the assets minus the crediting rate and cost of maintaining regulatory capital requirements.

6 Combines multiple Investment Metrics peer groups.

5 Mixed Asset peer groups utilize prospectus net expense ratio information due to the nature of the asset classand common use of a Fund of Fund structure.

4 Stable value fund average calculated using Hueler Universe data for a mandate size of $1 million in assets.

Cost Analysis

Expense Ratio Peer Group Data1

2 Difference column represents the difference between the fund's expense ratio and the Peer Group's average expense ratio.

Page 82

Appendix

Page 83

Glossary of Investment Terms and Concepts

Active Returns Measures the average excess return of the portfolio relative to a benchmark. The excess return is annualized. The higher the active return, the better the portfolio’s performance versus the benchmark. Alpha Measures nonsystematic return, or the return that cannot be attributed to the market. Thus, it can be thought of as how the manager performed if the market had no gain or loss. A positive alpha implies that the manager has added value to the return of the portfolio over that of the market. Average Credit Quality An average of all the credit-quality positions for the fund or underlying fund’s bond holdings. The credit quality levels range from AAA (highest) to D (lowest). Average Maturity Average maturity is the weighted average of the dates on which the bonds held in the portfolio become due and are to be paid off. Average Weighted Coupon A weighted average of the coupons for all bond holdings in the fund or underlying fund’s portfolio. This figure is generated by weighing each bond’s rate of interest to its relative size in the portfolio. Bloomberg Barclays U.S. Aggregate Bond Index This includes all publicly issued, non-convertible domestic debt of the US Government and all its agencies, all investment-grade corporate debt and all mortgage-backed securities. The minimum maturity is one year, but there is no maximum maturity. The bonds must have at least $250 million par amount outstanding. Bloomberg Barclays U.S. Government/Credit Bond Index Is made up of the Bloomberg Barclays U.S. Government and Bloomberg Barclays U.S. Capital Credit Indices. All issues are rated investment grade or higher, have at least one year to maturity, and have an outstanding par value of at least $250 million.

Bloomberg Barclays U.S. Government/Credit Intermediate Index A measure of the movement of approximately 2,800 bonds from the Bloomberg Barclays U.S. Government/Credit index with maturities between 1 and 9.99 years. The total return calculated for the index consists of price appreciation/depreciation and income as a percentage of the original investment. Bloomberg Barclays U.S. Government/Credit Long Index A measure of the movement of bonds from the Bloomberg Barclays U.S. Government/Credit index with maturities greater than 9.99 years. The total return calculated for the index consists of price appreciation/depreciation and income as a percentage of the original investment. Beta Measures the risk level of the manager. Beta measures the systematic risk, or the return that is attributable to market movements. A beta equal to one indicates a risk level equivalent to the market. Higher betas are associated with higher risk levels, while lower betas are associated with lower risk levels. Bottom-Up A methodical approach to investing in which investors search for outstanding performance of individual stocks before considering the impact of economic trends. Companies are identified from research reports, stock screens, personal knowledge of the products and services, and other resources. The bottom-up approach assumes that individual companies can do well, even in an industry or sector that is not performing well. Commingled Account The collective investment of the assets of several institutional clients, usually through an investment manager allowing for broader and more efficient investing.

Page 84


Consumer Price Index (CPI) A measure of the average change in prices over time of a fixed group of goods and services. The CPI is published by the Bureau of Labor Statistics in the Department of Labor and is released monthly. It is widely used as a cost-of-living benchmark. Correlation Statistical measure of the degree to which the movements of two variables are related, ranging from 1 to -1. For asset allocation purposes, mixing two assets with a correlation less than 1 results in a benefit of diversification because the two assets do not behave in exactly the same manner. Core Investment Style An investment approach that managers utilize by reviewing the entire universe of growth and value stocks within a market capitalization range, then choosing a combination of the most attractive of either type to create a blended portfolio with a style that is neither a pure value nor a pure growth. Core portfolio characteristics including P/E ratio, P/B ratio, and dividend yield that typically lie between growth and value portfolios. Coupon The interest on a debt security, e.g., a bond, the issuer promises to pay to the holder until maturity, expressed as an annual percentage of the security’s face value. For example, a bond with a 10% coupon will pay $10 per $100 of the face amount per year. Current Yield The annual interest on a bond divided by the market price. If a $1,000 bond was bought at $800 and the annual income from the bond was $100, the current yield is $100 divided by $800, or 12½%. Dow Jones Industrial Average Computed by summing the prices of the stocks of 30 companies and then dividing that total by a value which has been adjusted over the years so that the index is not affected by stock splits.

Downside Risk Estimate that a security will decline in value and the extent of the decline, taking into account the total range of factors affecting market price. Duration Measure of the price change of a bond to a change in its yield to maturity. It summarizes, in a single number, the characteristics that cause bond prices to change in response to a change in interest rates. The price of a bond with a duration of three years will rise by approximately 3% for each 1% decrease in its yield to maturity. That price will decrease 3% for each 1% increase in the bond’s yield. Price changes for two different bonds can be compared using duration. A bond with a duration of six years will exhibit twice the percentage price change of a bond with a three year duration. The actual calculation of a bond’s duration is somewhat complicated, but the idea behind the calculation is straightforward. The first step is to measure the time interval until receipt for each cash flow (coupon and principal payments) from a bond. The second step is to compute a weighted average of these time intervals. Each time interval is measured by the present value of that cash flow. This weighted average is the duration of the bond measured in years. Excess Risk A measure of the standard deviation of a portfolio’s performance relative to the risk free return, represented by 90-Day T-Bills. Expense Ratio A figure that represents the percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except for brokerage costs and sales charges.

Page 85


Fundamental Analysis A method of analyzing the balance sheet and income statement of a company in order to forecast its future stock price movements. Analysts consider the company’s past records of assets, earnings, sales, products, management, and markets in predicting future trends in these indicators of a company’s success or failure. Growth Stock Stock of a company which is growing earnings and/or revenue faster than its industry or the overall market and is expected to continue to show high levels of profit growth and P/E multiples. Such a company usually pays little or no dividends, preferring to use the income to finance further expansion. Generally, these stocks are contrasted with value stocks that trade at lower P/E multiples. Information Ratio The information ratio is a measure of the consistency of excess return. This value is determined by taking the annualized excess return over a benchmark (style benchmark by default) and dividing it by the standard deviation of excess return. Large Cap “Large cap” refers to stock with a large capitalization, which is calculated by multiplying the number of outstanding shares times the price of the shares. Large cap stocks typically have at least $5 billion in outstanding market value. Long-Term Earnings Growth The long-term perspective earnings growth rate is the asset-weighted average of the long-term perspective earning growth rates of all the domestic stocks in the fund’s portfolio as of the date of the portfolio. Each portfolio holding is weighted by the percentage of domestic equity assets it represents, so that largest positions have proportionately greater influence on the fund’s aggregate long-term earnings growth rate. Long-term prospective earnings growth rates for stocks are provided by a third party stock data vendor.

Market Capitalization The value of a corporation as determined by the market price of its issued and outstanding common stock, calculated by multiplying the number of outstanding shares by the current market price of a share. Market capitalization may also refer to the total current value of the holdings of a mutual fund. Maturity Refers to the date at which a debt instrument is due and payable. A bond due to mature on January 1, 2010 will return the bondholder’s principal and final interest payment when it reaches maturity on that date. Median Market Capitalization The median market capitalization of the companies in a fund’s portfolio. Half of the fund’s money is invested in the stocks of companies larger than the median market capitalization, and half is invested in smaller issuers. Mid Cap “Mid cap” refers to stock with a medium capitalization, which is calculated by multiplying the number of outstanding shares times the price of the shares. Mid cap stocks typically have between $1 and $10 billion in outstanding market value. MSCI - EAFE Europe, Australia and Far East Equity Index, calculated by the Morgan Stanley Capital International group. The index acts as a benchmark for managers of international stock portfolios. Mutual Fund A fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, futures, currencies, or money market securities. Mutual funds offer investors the advantages of diversification and professional management. Shares are redeemable on demand at net asset value by shareholders, who share equally in the gains and losses generated by the fund.

Page 86


Price/Book Ratio This is the weighted average of the price/book ratios of all stocks in a fund’s portfolio. The P/B ratio of a company is calculated by dividing the market price of its stock by the company’s per share book value (negative book values are excluded). Price/Earnings Ratio This is the weighted average of the price/earnings ratios of all stocks in a fund’s portfolio. The P/E ratio of a stock is obtained by dividing the current price of the stock by its trailing 12 months’ earnings per share. Quartile Universe Comparison These graphs depict the performance of the fund versus its peer group for the periods listed. Each floating bar represents the universe group’s performance over the selected time period. For each period, there is a high, low, median, and first and third quartile point. R-Squared Statistic A statistic that measures the reliability of alpha and beta in explaining the return of a manager as a linear function of the market. Higher R-squared values indicate more reliable alpha and beta statistics and are useful in assessing a manager’s investment style. ROE (Return on Equity) The amount, expressed as a percentage, earned on a company’s common stock investment for a given period. Return on equity tells commons stockholders how effectually their money is being employed. Risk Return Graph This graph is used to compare the performance and risk (standard deviation) of the fund against the performance and risk of an appropriate benchmark for a specific period of time.

Rolling Returns Bar Graph This graph shows the performance of a fund for a specific trailing period (quarterly), and for every three-month period going back for a set of previous periods. Russell 1000 Index A market index comprised of the highest-ranking 1,000 stocks in the Russell 3000 Index, representing about 90% of the Russell 3000 Index total market capitalization. Russell 1000 Growth Index This contains those Russell 1000 securities with a greater-than-average growth orientation. Securities in this index tend to exhibit higher price-to-book and price-earnings ratios, lower dividend yields, and higher forecasted growth values than the Value universe. Russell 1000 Value Index This contains those Russell 1000 securities with a lower-than-average growth orientation. Securities in this index tend to exhibit lower price-to-book and price-earnings ratios, higher dividend yields, and lower forecasted growth values than the Growth universe. Russell 2000 Index A market index comprised of the 2,000 smallest companies in the Russell 3000 Index, representing approximately 10% of the Russell 3000 Index total market capitalization. Russell 2000 Growth Index This contains those Russell 2000 securities with a greater-than-average growth orientation. Securities in this index tend to exhibit higher price-to-book and price-earnings ratios, lower dividend yields, and higher forecasted growth values than the Value universe. Russell 2000 Value Index This contains those Russell 2000 securities with a lower-than-average growth orientation. Securities in this index tend to exhibit lower price-to-book and price-earnings ratios, higher dividend yields, and lower forecasted growth values than the Growth universe.

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Russell Midcap Index This contains the 800 smallest companies in the Russell 1000 Index, representing approximately 25% of the Russell 1000 Index total market capitalization. Russell Midcap Growth Index This contains those Russell Midcap securities with a greater-than-average growth orientation. Securities in this index tend to exhibit higher price-to-book and price-earnings ratios, lower dividend yields, and higher forecasted growth values than the Value universe. Russell Midcap Value Index This contains those Russell Midcap securities with a lower-than-average growth orientation. Securities in this index tend to exhibit lower price-to-book and price-earnings ratios, higher dividend yields, and lower forecasted growth values than the Growth universe. Sector A particular group of stocks, usually found in one industry or a combination of industries, such as airline or railroad stocks. Separate Account An account established by an investment manager for investment of a specific client’s assets and maintained exclusively for such assets. Sharpe Ratio This is a risk-adjusted measure calculated by using standard deviation and excess return to determine reward per unit of risk. In general, the higher the Sharpe Ratio, the better the fund’s historical risk-adjusted performance. The Sharpe ratio is calculated by dividing the fund’s annual excess return by the fund’s annualized standard deviation. Small Cap “Small cap” refers to stock with a small capitalization, which is calculated by multiplying the number of outstanding shares times the price of the shares. Small cap stocks typically have up to $1 billion in outstanding market value.

Standard & Poor’s Index (S&P 500) Covers 400 industrial, 40 utility, 20 transportation, and 40 financial companies of the US markets (mostly NYSE issues). The index represents about 75% of NYSE market capitalization. It is a capitalization-weighted index calculated on a total return basis with dividends reinvested. Standard Deviation A statistical gauge of risk which measures the spread of the difference of returns from their average. The more a portfolio’s returns vary from its average, the higher the standard deviation. Top-Down A methodical approach to investing in which investors consider current trends in the overall economy, and next selects the industries and then companies that should benefit from such trends. For example, if inflation stays low consumers’ spending power will be enhanced; investors may be attracted to retailing companies with the best earnings prospects in the near-term. If rapid inflation is expected, investors might look at the mining industry and then try to determine which particular gold, copper or other mining company might benefit from a rising trend in prices. The opposite approach to top-down investing is a bottom-up method. Tracking Error The deviation of a dependent variable (i.e. an investment portfolio) with respect to a reference function (i.e. a benchmark index). Turnover Ratio This is a measure of the fund’s trading activity that is calculated by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly assets. The resulting percentage loosely represents the percentage of the portfolio’s holdings that have changed over the past year. Universe These are composites of managers that share a common investment style and provide a peer analysis of how the fund is performing relative to other investments in the same asset and style category

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Up/Down Capture The up and down capture is a measure of how well a manager was able to replicate or improve on phases of positive benchmark returns, and how badly the manager was affected by phases of negative benchmark returns. To calculate the up capture, we first form a new series from the manager and benchmark series by dropping all time periods where the benchmark return is zero or negative. The up capture is then the quotient of the annualized return of the resulting manager series, divided by the annualized return of the resulting benchmark series. The down capture is calculated analogously. Value Stock A stock that is considered to be a good investment at a desirable price, based on fundamental analysis, such as its P/B and its P/E, among other criteria. Generally, these stocks are contrasted with growth stocks that trade at higher P/E multiples.

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Disclaimers and Notes

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Disclaimers:

§ Please review this report and notify Aon Hewitt Investment Consulting (AHIC) with any issues or questions you may have with respect to investment performance or anyother matter set forth herein.

§ The client portfolio market value data presented in this report has been obtained from the record-keeper. AHIC believes the information to be accurate but has not conductedany type of additional audits to ensure the information’s accuracy and cannot warrant its accuracy or completeness.

§ The mutual fund information found in this report is provided by Lipper Inc. and AHIC cannot warrant its accuracy or timeliness.

§ Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of RussellInvestment Group.

§ The Greenwich Quality Leaders Awards are based on quality ratings provided by clients of investment consultants and asset managers. Between July and October 2015,Greenwich Associates conducted 1,341 interviews with senior professionals at corporate and union funds, public funds, endowments and foundations, insurance generalaccounts, and healthcare organizations with either pension or investment pool assets greater than $150 million. Study participants were asked to provide quantitative andqualitative evaluations of their investment consultants. Based on those responses, Greenwich Associates calculates a score on the Greenwich Quality Index• for eachconsultant named. Consultants with scores that top those awarded to competitors by a statistically significant margin are named Greenwich Quality Leaders. Visit theGreenwich Associates website (https://www.greenwich.com/asset-management/leading-investment-consultants-form-deep-advisory-relationships) to read a copy of the fullreport and to learn more about the methodology.

Notes:

§ The rates of return contained in this report are shown on an after-fees basis unless otherwise noted. They are geometric and time weighted. Returns for periods longer thanone year are annualized.

§ Universe percentiles are based upon an ordering system in which 1 is the best ranking and 100 is the worst ranking.

§ Due to rounding throughout the report, percentage totals displayed may not sum up to 100.0%. Additionally, individual fund totals in dollar terms may not sum up to the plantotals.

Disclaimers and Notes

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Quarterly Investment Review - fcps.edu · Fairfax County Public Schools ... • Past performance is a noisy filter for crafting expectations about future performance. ... (Part Five