San Diego City Employees’ Retirement System...2017/03/04 · San Diego City Employees’ Retirement System 4Q 2016 Performance Summary March 9, 2017 2 (This page left blank intentionally)

San Diego City Employees’ Retirement System

4Q 2016 Performance Summary

March 9, 2017

2

(This page left blank intentionally)

3

Market Update

4

Major Capital Markets Performance Summary

As of December 2016

Quarter FYTD 1 year 3 years 5 years 10 years

DJ U.S. Total Stock Market Index 4.1% 8.8% 12.6% 8.4% 14.6% 7.2%

S&P 500 Index 3.8 7.8 12.0 8.9 14.7 6.9

Russell 2000 Index 8.8 18.7 21.3 6.7 14.5 7.1

MSCI EAFE Index -0.7 5.7 1.0 -1.6 6.5 0.7

MSCI EAFE Index (Local Currency) 7.1 13.5 5.3 5.5 11.8 2.2

MSCI Emerging Markets Index -4.2 4.5 11.2 -2.6 1.3 1.8

MSCI Emerging Markets Index (Local Currency) -1.4 6.0 9.7 2.8 5.6 4.4

Bloomberg Barclays Aggregate Bond Index -3.0 -2.5 2.6 3.0 2.2 4.3

Bloomberg Barclays Intermediate Agg. Bond Index -2.0 -1.7 2.0 2.4 1.9 4.0

JPM GBI-EM Global Diversified Index -6.1 -3.6 9.9 -4.1 -1.3 3.8

JPM EMBI Global Index -4.2 -0.6 10.2 5.6 5.4 6.8

10 Year U.S. Treasury -6.8 -7.5 -0.2 3.7 1.4 4.9

CPI 0.0 0.2 2.1 1.2 1.4 1.8

5

SDCERS: Performance Summary

6

Change in Market Value

The Total Fund market value decreased by approximately $31 million during the fourth quarter due

to net withdrawals of approximately $118 million and investment gains of approximately $87

million

7

Historical Market Values

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Ju

n-9

9

Ja

n-0

0

Aug-0

0

Ma

r-0

1

Oct-

01

Ma

y-0

2

De

c-0

2

Ju

l-0

3

Feb

-04

Se

p-0

4

Ap

r-0

5

Nov-0

5

Ju

n-0

6

Ja

n-0

7

Au

g-0

7

Ma

r-0

8

Oct-

08

Ma

y-0

9

De

c-0

9

Ju

l-1

0

Feb-1

1

Se

p-1

1

Ap

r-1

2

No

v-1

2

Ju

n-1

3

Ja

n-1

4

Au

g-1

4

Ma

r-1

5

Oct-

15

Ma

y-1

6

De

c-1

6

Ma

rke

t V

alu

e (

in M

illio

ns)

Total Fund Market Value History Ending 12/31/2016

$7.2 Billion

8

Total Fund Returns

Note: Total Fund net returns are shown net of investment management fees beginning July 1, 2010. Net of fee returns are calculated as fees are actually

paid out of the Fund. Returns prior to July 1, 2010 are gross of investment management fees. Total Fund gross returns are shown gross of investment

management fees during all trailing periods. The Difference refers to the Total Fund Net performance relative to the Policy Benchmark.

Note: Real estate and private equity/infrastructure returns are included in performance on a one-quarter lagged basis.

Investment Results

As of 12/31/2016

1.2%

5.2%

8.5%

5.1%

9.3%

5.6%

8.9%

1.2%

5.1%

8.3%

4.9%

9.0%

5.4%

8.9%

0.6%

4.0%

7.9%

5.1%

8.7%

5.6%

8.4%

0.6% 1.1%

0.4%

-0.2%

0.3%

-0.2%

0.5%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Quarter FYTD 1-Year 3-Years 5-Years 10-Years Since Inception(12/31/1988)

Total Fund - Gross Total Fund - Net Policy Benchmark Difference

9

Total Fund Risk vs. Return

10

Total Fund Peer Universe

*Total Fund net returns are shown net of investment management fees beginning July 1, 2010. Net of fee returns are calculated as fees are actually paid out of

the Fund. Returns prior to July 1, 2010 are gross of investment management fees.

**The universe shown above represents the All Public Fund Universe obtained from BNY Mellon and Investment Metrics.

11

Historical Fiscal Year Performance

*Total Fund returns are shown net of investment management fees beginning July 1, 2010. Returns prior to July 1, 2010 are gross of investment management fees. For full fiscal year periods, up-to-date (non-lagged) real estate, private equity and infrastructure returns are included in Total Fund performance.

**Represents the 2017 fiscal year-to-date period of 7/1/2016 – 12/31/2016. Note, real estate and private equity/infrastructure returns are included on a one-quarter lag.

9.5%

14.8%

-1.2% -2.4%

5.3%

20.3%

10.8% 12.8%

16.5%

-4.7%

-19.1%

13.4%

24.2%

0.9%

13.6%

16.8%

3.3%

1.1%

5.1%

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017**

Fiscal Year Investment Results Periods Ending June 30th

12

Asset Allocation

Allocations shown above are based on the actual exposure to each asset class, which includes the impact of the cash

equitized by the Clifton Group

As of December 31, 2016, approximately $286 million was held in cash and equitized by the Clifton Group

– Approximately $28 million of cash was held in underlying manager accounts and equitized to its respective U.S. or non-U.S. equity mandate

– Approximately $258 million was held in cash at the custodian and equitized to maintain Fund’s asset allocation close to the 78/22 Policy allocation

24.3%

16.9%

4.8%

23.2%

4.4%

9.3%

14.0%

3.1%

23.9%

17.0%

5.0%

23.1%

5.0%

11.0% 12.0%

3.0%

0.4%

0.0% -0.2%

0.1%

-0.6% -1.7%

2.0% 0.1%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Total U.S.Equity

Total Non-U.S.Equity

Total GlobalEquity

Total U.S.Fixed Income

Total EmergingMarket Debt

Total RealEstate

Total PrivateEquity/

Infrastructure

TotalOpportunity

Fund

SDCERS - Asset Allocation vs. Policy Targets As of 12/31/2016 Actual Allocation Policy Target Difference

13

Asset Class Performance as of 12/31/2016

*Current period returns are shown net of investment management fees. Returns prior to July 1, 2010 are gross of investment management fees

** Real estate and private equity/infrastructure returns are shown on a one-quarter lag. Prior to 3Q 2014, only the returns for the private portion of the real estate portfolio and its benchmark are reported on a quarter lagged basis.

***Reflects the inception date for the calculation and reporting of the Private Equity/Infrastructure composite time-weighted returns. The Private Equity and Infrastructure programs began in 2009 and 2012, respectively, and the full history of Private Equity and Infrastructure returns are included in Total Fund performance. Greater private market performance detail is included in the longer quarterly performance reports.

Asset Class* Quarter FYTD 1-Year 3-Years 5-Years 10-Years Since

Inception Inception

Date

U.S. Equity 5.0% 11.0% 12.9% 7.5% 14.4% 7.2% 10.6% 1/1/1989

Performance Benchmark 4.1 8.8 12.6 8.4 14.6 7.6 10.1

Non-U.S. Equity -2.0 4.7 4.5 -1.2 5.8 0.3 7.2 4/1/1995

Performance Benchmark -1.7 5.3 4.8 -1.5 5.3 1.2 5.2

Global Equity -0.6 3.8 6.7 1.7 -- -- 8.6 6/1/2012

MSCI ACW Index 1.2 6.6 7.9 3.1 -- -- 10.1

U.S. Fixed Income -1.9 -1.3 2.2 2.1 2.3 4.9 6.7 4/1/1989

Performance Benchmark -2.0 -1.7 2.0 2.4 1.9 3.8 5.6

Emerging Market Debt -4.6 -1.4 10.1 0.3 2.0 -- 1.5 7/1/2011

Performance Benchmark -5.3 -2.2 10.1 0.1 1.8 -- 1.1

Real Estate** 1.5 4.6 13.6 11.6 11.8 4.5 9.1 1/1/1989

Performance Benchmark** 1.9 4.2 10.3 11.7 11.9 6.6 8.4

Private Equity/Infrastructure** 5.5 8.5 10.9 -- -- -- 12.7 10/1/2014***

Performance Benchmark 2.4 4.9 10.0 -- -- -- 10.0

Opportunity Fund 4.5 8.5 11.0 -- -- -- 7.0 6/1/2014

Opportunity Fund Benchmark 0.5 5.0 7.1 -- -- -- 2.2

14

Fourth Quarter 2016 Attribution – Total Fund

Attribution Analysis Quarter Ending 12/31/2016

Fourth Quarter 2016

Total Fund 1.19%

Policy Index 0.55%

Relative Performance +64 basis points

Total Fund, 64

Timing & Interaction Effect, -11

Selection Effect, 63

Allocation Effect, 11

-100 -75 -50 -25 0 25 50 75 100

15

Fourth Quarter 2016 Performance Attribution – Allocation Effect

*Actual % allocation represents the average allocation over the quarter.

The Allocation Effect represents the favorable or unfavorable impact due to being over or underweight an asset class and how that asset class performed versus the Total Fund Policy Benchmark

– The Allocation Effect shown above includes the impact of the cash equitized by the Clifton Group

– Generally expect to see minimal allocation effect as the Plan’s asset allocation is maintained closely in line with

Policy Targets at all times

Asset Class

Actual

(%)*

Policy

(%)

Policy

Return

Allocation

Effect

U.S. Equity 26.3% 23.9% 4.1% 6

Non-U.S. Equity 17.8 17.0 -1.7 -2

Global Equity 4.8 5.0 1.2 0

U.S. Fixed Income 20.8 23.1 -2.0 6

EMD 4.5 5.0 -5.3 2

Total Real Estate 9.4 11.0 1.9 -2

Private Equity /

Infrastructure 13.5 12.0 2.4 1

Opportunity

Fund 2.8 3.0 0.5 0

Total Fund

Allocation Effect 0.6% 11

Attribution Analysis – Allocation Effect

Quarter Ending 12/31/2016

Total Allocation Effect, 11

Opportunity Fund, 0

Private Equity/ Infrastructure, 1

Real Estate, -2

EMD, 2

U.S. Fixed Income, 6

Global Equity, 0

Non-U.S. Equity, -2

U.S. Equity, 6

-50 -25 0 25 50

16

Fourth Quarter 2016 Performance Attribution – Selection Effect

*Actual % allocation represents the average allocation over the quarter.

The Selection Effect represents the impact that active management has had on the Total Fund’s performance over the given time period

– Active management impact is rolled up to the asset class level and is based on each asset class’ weight in the portfolio and its performance relative to its specific asset class policy benchmark

Asset Class

Actual

(%)*

Policy

(%)

Actual

Return

Policy

Return

Selection

Effect

U.S. Equity 26.3% 23.9% 5.0% 4.1% 22

Non-U.S. Equity 17.8 17.0 -2.0 -1.7 -6

Global Equity 4.8 5.0 -0.6 1.2 -9

U.S. Fixed Income 20.8 23.1 -1.9 -2.0 3

EMD 4.5 5.0 -4.6 -5.3 3

Real Estate 9.4 11.0 1.4 1.9 -6

Private Equity /

Infrastructure 13.5 12.0 5.5 2.4 45

Opportunity

Fund 2.8 3.0 4.5 0.5 11

Total Fund

Selection Effect 1.2% 0.6% 63

Attribution Analysis – Selection Effect

Quarter Ending 12/31/2016

Total Selection Effect, 63

Opportunity Fund, 11

Private Equity/ Infrastructure,

45

Real Estate, -6

EMD, 3


Global Equity, -9

Non-U.S. Equity, -6

U.S. Equity, 22

-100 -75 -50 -25 0 25 50 75 100

17

Manager Value Added

*The opportunity fund investments are early in their investment lives and therefore the time-weighted relative performance shown above is not as meaningful.

Asset Class Manager Benchmark

Fourth

Quarter FYTD 1-Year 3-Years 5-Years 10-Years

Since

Inception

Inception

Date

BlackRock S&P 500 Index S&P 500 Index 0.0 0.0 0.0 0.0 0.0 -- 0.0 3/1/2011

BlackRock Russell 1000 Growth Index Russell 1000 Growth Index 0.0 0.0 0.0 0.0 0.0 -- 0.0 3/1/2011

Dodge & Cox Large Cap Value Russell 1000 Value Index 4.2 10.0 4.2 0.2 2.3 0.7 1.1 5/1/2003

BlackRock Russell 2000 Growth Index Russell 2000 Growth Index 0.2 0.3 0.5 0.4 -- -- 0.4 12/1/2012

DFA Small Cap Value Russell 2000 Value Index 1.2 0.4 -3.2 -0.5 1.7 1.8 2.8 10/1/1995

Fisher Small Cap Value Russell 2000 Value Index -3.7 -7.2 -11.3 -0.7 -0.2 -- 1.9 10/1/2008

Allianz Convertibles Convertibles Benchmark -1.0 -0.9 -4.4 -1.5 -1.4 1.6 2.5 10/1/1995

Allianz Structured Alpha S&P 500 Index -- -- -- -- -- -- 1.0 11/1/2016

BlackRock MSCI ACW ex-U.S. IMI MSCI All Country World ex-U.S. IMI 0.0 0.0 0.2 0.1 0.2 -- 0.2 3/1/2011

Brandes International Value MSCI All Country World ex-U.S. Index 2.8 2.6 1.4 2.2 1.9 -0.1 4.1 4/1/1995

GMO International Small Cap S&P Developed ex-U.S. Small Cap Index 0.7 0.8 -3.8 -3.6 -1.2 0.2 0.7 7/1/2002

Copper Rock International Small Cap S&P Developed ex-U.S. Small Cap Index -4.0 -5.7 -- -- -- -- -6.7 4/1/2016

Aberdeen MSCI Emerging Markets Index -1.3 -4.6 1.1 0.8 0.8 -- 3.0 1/1/2010

Neuberger Berman Emerging Markets MSCI Emerging Markets Equity Index -1.8 -2.2 -1.6 -- -- -- 0.8 3/1/2014

GMO Global Equity Allocation MSCI All Country World Index -1.2 -1.0 0.1 -2.9 -- -- -2.4 6/1/2012

Walter Scott Global Equity MSCI All Country World Index -2.4 -4.4 -2.3 0.0 -- -- -0.6 6/1/2012

Metropolitan West Barclays Intermediate Aggregate Bond Index 0.5 0.6 0.0 -0.4 0.5 1.2 0.8 7/1/2001

PIMCO Barclays Intermediate Aggregate Bond Index 0.1 1.1 0.6 -0.6 0.4 0.7 1.2 1/1/1989

BlackRock Intermediate Agg. Index Barclays Intermediate Aggregate Bond Index -0.1 -0.1 -0.2 0.0 -- -- -0.1 7/1/2011

Wellington JP Morgan EMBI Global Index 1.3 2.7 2.7 0.2 -- -- 0.2 7/1/2011

Stone Harbor Performance Benchmark 0.2 0.1 0.9 -1.1 -- -- -1.5 7/1/2011

Investec JP Morgan GBI-EM Global Diversified Index 0.1 -0.7 -3.6 -- -- -- -1.2 3/1/2014

Torchlight Debt Opportunity Fund IV NFI-ODCE Index 2.9 4.0 2.2 -- -- -- -2.9 2/1/2014

Grosvenor Credit Opportunities 50% CS HY / 50% CS Distressed Index 1.8 2.3 0.5 -- -- -- 2.8 6/1/2014

Mesa West NFI-ODCE Index 0.9 1.7 3.2 -- -- -- -3.1 12/1/2013

Torchlight Debt Opportunity Fund V NFI-ODCE Index 1.5 9.6 7.4 -- -- -- -168.3 6/1/2015

Davidson Kempner Opportunity Benchmark -2.3 -9.0 -- -- -- -- -17.2 6/1/2016

U.S. Equity

Non-U.S.

Equity

Global

Equity

U.S. Fixed

Income

Emerging

Market

Debt

Opportunity

Fund*

18

Torchlight IV

19%

Grosvenor 46%

Mesa West 8%

Torchlight V

8%

Davidson Kempner

19%

Commitment Allocation $260 Million

Opportunity Fund Overview

As of 12/31/2016* Market

Value ($M) Quarter FYTD 1-Year

Since

Inception Inception

Total Opportunity Fund

Opportunity Benchmark $221.9

4.5%

0.5

8.5%

5.0

11.0%

7.1

7.0%

2.2 6/1/2014

Torchlight Debt Opp. Fund IV

NCREIF ODCE Index (Net) 52.8

4.8

1.9

7.7

3.7

10.0

7.8

8.5

11.4 2/1/2014

Grosvenor Credit Opp.

50% CS HY / 50% CS Distressed Index

Opportunity Benchmark

133.2

4.9

3.1

0.5

9.7

7.4

5.0

12.5

12.0

7.1

4.2

1.4

2.2

6/1/2014

Mesa West


2.8

1.9

5.5

3.7

11.0

7.8

8.6

11.8 12/1/2013

Torchlight Debt Opp. Fund V


3.4

1.9

13.4

3.7

15.2

7.8

-156.6

11.7 6/1/2015

Davidson Kempner

Opportunity Benchmark 18.2

-1.8

0.5

-4.0

5.0 -

-12.5

4.7 6/1/2016

Fund Name

Total

Commitment

($M)

%

Funded

Torchlight IV $50 100%

Grosvenor $120 100%

Mesa West $20 70%

Torchlight V $20 25%

Davidson Kempner $50 37%

Total Commitment $260 80%

*Funds are early in their investment lives and therefore time-weighted performance can be misleading.

Torchlight IV

24%

Grosvenor 60%

Mesa West 6%

Torchlight V

2%

Davidson Kempner

8%

Asset Allocation $222 Million

19

SDCERS: Active Risk Analysis

20

Analysis of Total Fund Active Risk/Tracking Error

SDCERS’ Investment Policy Statement (IPS) specifies an active risk/tracking error budget of 1.75%

relative to the Fund’s Policy Benchmark

This section of the presentation provides an analysis of SDCERS’ active risk

An Illustration: Total Fund Active Risk = 1.0% What does an active risk of 1.0% mean?

In two out of every three years, the Fund’s

return can be expected to lie within +/- 1.0

percentage points (one standard deviation) of

its benchmark return

In nine out of every ten years, the Fund’s

return can be expected to lie within +/-2.0

percentage points (two standard deviations) of

its benchmark

- 5.0% - 3.0% - 1.0% 1.0% 3.0% 5.0%

Expected Return

0.0%

67% Probability

- 5.0% - 3.0% - 1.0% 1.0% 3.0% 5.0%

Expected Return

0.0%

67% Probability

21

SDCERS’ Active Risk: Background and Assumptions

Active risk analysis is forward-looking

– Based on current asset allocation and manager line-up

Analysis focuses on publicly-traded security asset classes; excludes illiquid private market asset

classes, such as real estate and private equity

– Policy Target weights are normalized to reflect exclusion of private market asset classes

Analyze sources that contribute to active risk

– Asset class level, including impact of biases (for instance, small cap overweight)

– Manager level

Utilize 60 months of historical return data for the managers for modeling purposes

– Use actual SDCERS’ return history where available

– For new managers/strategies or where sufficient history is not available, utilize relevant composite

return information

22

SDCERS: Total Fund Active Risk

Current active risk/tracking error of SDCERS’ portfolio is 0.4%, reflecting a slight decrease from the

previous quarter’s tracking error

– This is within the 1.75% limit set forth in the IPS

Figures below reflect SDCERS Policy as of December 2016

– New managers’ composite data was used for this analysis; SDCERS’ manger specific returns will

be utilized going forward as SDCERS’ return history grows with these mandates

Asset Class Allocation (%) Policy Target

(%)

Asset Class

Active Risk (%)

Contribution to

Total Fund

Active Risk (%)

U.S. Equities 33.5% 32.4 1.0% 53.1%

Non-U.S. Equities 23.0 22.9 0.9 8.2

Global Equity 6.8 6.8 2.1 1.6

U.S. Fixed Income 30.3 31.2 0.5 19.7

Emerging Market Debt 6.3 6.8 1.2 4.7

Allocation Effect - 12.7

Total Fund Active Risk 0.4% 100.0%

23

SDCERS: Decomposition of U.S. Equity Portfolio Active Risk

Manager Allocation(%) Manager Active

Risk (%)

Contribution to

U.S. Equity

Active Risk (%)

S&P 500 Index Fund 30.0% - -

Russell 1000 Growth Index Fund 15.6 - -

Dodge & Cox Large Cap Value 15.2 3.9% 47.5%

Russell 2000 Growth Index Fund 7.4 - -

DFA Small Cap Value 3.8 2.7 2.5

Fisher Small Cap Value 3.5 5.2 -0.1

Allianz Convertibles 11.8 1.9 11.3

Allianz Structured Alpha 12.7 2.5 3.9

Misfit Relative to Benchmark (Small Cap Bias) - 35.0

Total U.S. Equity Active Risk 1.0% 100.0%

Tracking error of the U.S. equity portfolio is 1.0%, reflecting no change from the previous quarter

Approximately 35% of the U.S. equity tracking error is explained by the small cap bias

The Allianz Structured Alpha strategy was funded during the fourth quarter

24

SDCERS: Decomposition of Non-U.S. Equity Portfolio Active Risk


Risk (%)

Contribution to

Non-U.S. Equity

Active Risk (%)

MSCI ACW ex-U.S. IMI Index Fund 60.2% - -

Brandes (EAFE) 14.2 3.8% 29.9%

GMO Intl Small Cap 5.2 3.5 9.2

Copper Rock Intl Small Cap 4.2 4.4 5.4

Aberdeen 10.6 5.1 41.3

Neuberger Berman 5.6 4.5 7.7

Misfit Relative to Benchmark - 6.6

Total Non-U.S. Equity Active Risk 0.9% 100.0%

Tracking error of the non-U.S. equity portfolio is 0.9%, reflecting no change from the previous quarter

25

SDCERS: Decomposition of Global Equity Portfolio Active Risk


Risk (%)

Contribution to

Global Equity

Active Risk (%)

GMO 49.0% 3.0% 50.0%

Walter Scott 51.0 2.9 50.0

Misfit Relative to Benchmark --

Total Global Equity Active Risk 2.1% 100.0%

Active risk/tracking error of the Global Equity portfolio is 2.1%, representing a decrease from the

previous quarter

26

SDCERS: Decomposition of U.S. Fixed Income Portfolio Active Risk


Risk (%)

Contribution to

U.S. Fixed

Income Active

Risk (%)

MetWest 30.1% 1.0% 52.9%

PIMCO 23.7 1.2 47.1

BC Intermediate Agg. Index Fund 46.2 - -

Total U.S. Fixed Income Active Risk 0.5% 100.0%

The active risk of the fixed income portfolio is 0.5%, representing no change from the previous

quarter’s tracking error

27

SDCERS: Decomposition of Emerging Market Debt Portfolio Active Risk


Risk (%)

Contribution to

EMD Active Risk

(%)

Wellington 32.3% 1.3% 4.0%

Stone Harbor 35.6 3.2 64.4

Investec 32.1 1.7 8.1

Misfit Relative to Benchmark 23.5

Total EMD Active Risk 1.2% 100.0%

Active risk of the EMD portfolio is 1.2%, representing a slight decrease from the previous quarter’s

tracking error

28

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San Diego City ERS | Fourth Quarter 2016

Quarterly Investment Review

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Writeup

1 Market Environment 1

2 Total Fund 19

3 Universe Rank & Calendar Year Returns 33

4 Total U.S. Equity 41

5 U.S. Equity Managers 47

6 Total Non-U.S. Equity 63

7 Non-U.S. Equity Managers 69

8 Total Global Equity 81

9 Global Equity Managers 85

10 Total U.S. Fixed Income 89

11 U.S. Fixed Income Managers 95

12 Total Emerging Market Debt 103

13 EMD Managers 107

14 Total Opportunity Fund 113

15 Opportunity Fund Managers 117

16 Appendix 123

Table of Contents


Writeup

Market Environment

1

A (Re)Introduction to Responsible Investing

To clients of Aon Hewitt Investment Consulting:

In recent years and particularly in the last 12 months in the U.S. (thanks to more Responsible Investing-friendly regulatory stances), investors have

become increasingly interested in “doing good while doing well” when investing. Unfortunately, this relatively nascent area of investing still has more

than its share of linguistic anarchy and execution challenges, which can be trying for even the most committed individual or institutional investor. In

order to restore cosmos to the linguistic chaos, Aon has broken the universe of Responsible Investments down into four main types: Socially

Responsible Investing (“SRI”), Environmental, Social and Governance (“ESG”) Investing, Impact Investing and Mission-Related Investing.

Socially Responsible Investing tends to be the area with which most investors are familiar, as it is the oldest of the four broad Responsible Investment

categories. SRI uses a negative selection process to exclude certain sectors or investments from a portfolio. ESG (Environmental, Social &

Governance) Investing, Impact Investing and Mission Related Investing are newer to investor’s toolkits and typically focus more on positive investment

inclusion criteria rather than on negative screening.

In addition to using different screening techniques, the drivers of investment may differ as well. SRI, Mission Related Investing and Impact Investing

are generally dependent on an individual’s or institution’s values to determine suitable investments. ESG Investing, however, is fundamentally different,

as investment decisions are directed by the fundamentals of the company. Non-financial ESG factors are considered to the extent they are material to

the company’s future financial performance.

Regardless of where an investor or organization falls on the Responsible Investing spectrum, we expect the trend towards “doing good while doing well”

to continue to grow in the future, partly due to shifts in demographics and the generational wealth transfer, as well as to changes in regulations and

investor-led initiatives. We stand ready to help as this area continues to rapidly evolve.

Aon Hewitt Investment Consulting

Socially Responsible Investing (SRI) ESG Investing Impact Investing Mission Related Investing

Selection Process : Negative Selection Process: Positive or Negative Selection Process: Positive Selection Process: Positive

Attempts to screen out investments in

stocks, companies or industries based

on a set of ethical values.

(Anti-pornography, private prisons,

carbon, coal, Iran, Sudan, fossil fuel,

weapons manufacturing, etc.)

Integrates environmental, social and

governance criteria into fundamental

analysis to the extent they are material

to investment performance.

(May avoid or short companies with

poor ESG considerations in favor of

firms with strong ESG metrics.)

Looks for investments that have a

positive investment return as well

as desired social, economic, or

environmental outcome.

(Diversity initiatives, investing in

underserved communities,

alternate energy, micro-funding,

etc.)

Places investments with companies or

funds that complement the investor’s

mission.

(Healthcare, senior issues, child-

welfare issues, religious

considerations, etc.)

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: Optimal Number of Managers in an Equity Portfolio Link

DB & DC: 2017 Hot Topics in Retirement and Financial Well-Being Link

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

DC: Target-Date Funds - Who is Using Them and How Are They Being Used? Link

DC: How Pension Benefits Affect the Optimal Target Date Fund Link

DC: Putting “Watch Lists” on Watch? Link

Healthcare: What's at Stake for Health Care Organizations with Church Pension Plans Link

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

Current Topics of Interest

Investment Program Assessment

A (Re)Introduction to Responsible Investing Link

PBGC Premium Reduction Strategies

Potential U.S. Corporate Tax Reform Presents Prefunding Opportunity in 2016 Link

Aon Hewitt Retirement and Investment Blog

https://retirementandinvestmentblog.aon.com/

Events

Aon Hewitt Retirement and Investment Client Conference: Exploring the Possibilities (May 17th-18th in Chicago)

Aon Hewitt | Retirement and Investment Proprietary and Confidential Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company.

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://www.aon.com/human-capital-consulting/thought-leadership/retirement/2017-retirement-whitepaper-series.jsp?utm_source=2017wplp&utm_medium=ri-tl&utm_campaign=optin

http://www.aon.com/human-capital-consulting/thought-leadership/retirement/2017-hot-topic-retirement.jsp?utm_source=2017uilp&utm_medium=ri-tl&utm_campaign=optin

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

http://www.aon.com/attachments/human-capital-consulting/target-date-funds-11032016.pdf

http://respond.aonhewitt.com/how-pension-benefits-affect-the-optimal-tdf-wp?utm_source=2016wplp&utm_medium=elq-lp&utm_campaign=2016-ret-wp-series

http://respond.aonhewitt.com/putting-watch-lists-on-watch-wp?utm_source=2016wplp&utm_medium=elq-lp&utm_campaign=2016-ret-wp-series

http://respond.aonhewitt.com/whats-at-stake-for-health-care-orgs-wp?utm_source=2016wplp&utm_medium=elq-lp&utm_campaign=2016-ret-wp-series

http://www.aon.com/human-capital-consulting/thought-leadership/retirement/wp-redefining-retirement-healthcare-industry.jsp?utm_source=vanity&utm_medium=aoncom&utm_campaign=redefining-retirement

https://retirementandinvestmentblog.aon.com/BlogHome/Blog/January-2017/A-(Re)Introduction-to-Responsible-Investing.aspx

https://retirementandinvestmentblog.aon.com/BlogHome/Blog/December-2016/Potential-U-S-Corporate-Tax-Reform-Presents-Prefun.aspx

https://retirementandinvestmentblog.aon.com/

Fourth Quarter 1-Year 3-Year1 5-Year1 10-Year1

Equity

MSCI All Country World IMI 1.27% 8.36% 3.25% 9.61% 3.84%

MSCI All Country World 1.19% 7.86% 3.13% 9.36% 3.56%

Dow Jones U.S. Total Stock Market 4.13% 12.62% 8.36% 14.60% 7.18%

Russell 3000 4.21% 12.74% 8.43% 14.67% 7.07%

S&P 500 3.82% 11.96% 8.87% 14.66% 6.95%

Russell 2000 8.83% 21.31% 6.74% 14.46% 7.07%

MSCI All Country World ex-U.S. IMI -1.57% 4.41% -1.44% 5.35% 1.22%

MSCI All Country World ex-U.S. -1.26% 4.50% -1.78% 5.00% 0.96%

MSCI EAFE -0.71% 1.00% -1.60% 6.53% 0.75%

MSCI EAFE (Local Currency) 7.07% 5.35% 5.53% 11.84% 2.20%

MSCI Emerging Markets -4.16% 11.19% -2.55% 1.28% 1.84%

Fixed Income

Bloomberg Barclays Global Aggregate -7.07% 2.09% -0.19% 0.21% 3.29%

Bloomberg Barclays Aggregate -2.98% 2.65% 3.03% 2.23% 4.35%

Bloomberg Barclays Long Gov't -11.50% 1.42% 7.71% 2.57% 6.60%

Bloomberg Barclays Long Credit -5.40% 10.22% 6.98% 5.20% 6.87%

Bloomberg Barclays Long Gov't/Credit -7.84% 6.67% 7.16% 4.06% 6.85%

Bloomberg Barclays US TIPS -2.41% 4.68% 2.26% 0.89% 4.36%

Bloomberg Barclays High Yield 1.75% 17.13% 4.66% 7.37% 7.46%

Citi Group Non-U.S. WGBI -10.84% 1.81% -2.18% -1.94% 2.54%

JP Morgan EMBI Global (Emerging Markets) -4.21% 10.19% 5.59% 5.44% 6.75%

Commodities

Bloomberg Commodity Index 2.66% 11.77% -11.26% -8.95% -5.58%

Goldman Sachs Commodity Index 5.76% 11.37% -20.60% -13.13% -8.10%

Hedge Funds

HFRI Fund-Weighted Composite2 1.31% 5.57% 2.44% 4.53% 3.37%

HFRI Fund of Funds2 0.83% 0.48% 1.18% 3.41% 1.31%

Real Estate

NAREIT U.S. Equity REITS -2.89% 8.52% 13.38% 12.01% 5.08%

NCREIF NFI - ODCE3 2.07% 8.72% 12.05% 12.20% 5.81%

Infrastructure

Macquarie Global Infrastructure - North America -2.80% 9.30% 2.95% 5.60% 3.08%

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 Fourth quarter results are preliminary.4 Source: Burgiss Private iQ. Benchmark is as of 06/30/2016

Periods Ending 12/31/2016

Returns of the Major Capital Markets

Market Highlights

4

Market Highlights

5

Global equity markets rose against a backdrop of political uncertainty in the form of the US Presidential elections,

Italian constitutional referendum and ongoing Brexit discussions. Markets entered positive territory towards the end of

the quarter on the hopes of Trump’s fiscal reforms policies and rising crude oil prices.

Global equity markets returned 1.27% in Q4 2016 with only US and Canada regions generating positive returns. US

was the best performing market with a return of 3.84% over the quarter as strong Q3 2016 GDP data and growing

inflation expectations over promises of greater fiscal spending under Trump’s administration supported equities. The

US Federal Reserve (Fed) raised the federal fund rate target by 25bps to 0.50-0.75% and indicated a faster pace of

tightening in 2017.

Global Equity Markets

6

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.

7

U.S. Equity Markets

The Russell 3000 Index returned 4.21% during the fourth quarter and returned 12.74% over the one-year period.

During the fourth quarter, the financial services sector was the strongest performer, posting returns of 13.04%. The

healthcare and consumer staples sectors were the weakest performers, with returns of -4.22% and -1.57%

respectively.

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

the other segments in Growth and Value stocks. Value stocks continued their outperformance relative to Growth stocks

over 2016 across the capitalizations.

8

U.S. Fixed Income Markets

The Bloomberg Barclays Aggregate Bond Index fell

2.98% in the fourth quarter. ABS bonds fell by the least

with a return of -0.70% whilst Government bonds fell by

the most, returning -3.72%.

High yield bonds outperformed all investment grade

corporate bonds, as high yield spreads fell by 71bps

(according to the Bloomberg Barclays Live indices).

Shortest duration bonds outperformed all other bonds in

different maturities. This particularly benefitted high yield

bonds which typically have low duration.

9

U.S. Fixed Income Markets

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

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

The Fed’s decision to increase the target federal funds range by 25bps to 0.5-0.75% alongside higher breakeven

inflation drove yields higher.

The 10-year U.S. Treasury yield ended the quarter at 2.45%, 85 basis points higher than its level at the beginning of

the quarter.

The 10-year TIPS yield rose by 50 basis points over the quarter and ended the period at 0.50%.

10

European Fixed Income Markets

In the Eurozone, government bond yields rose across the region with the exception of Greece. Bond spreads widened

as the peripheral government bond yields rose at a faster pace than the core government bond yields. German bund

yields moved into positive territory after several months of negative yields, and ended the quarter at 0.11%.

Portuguese bond yields continued to rise due to concerns over the government’s finances (the European Commission

warned Portugal’s 2017 draft budget for non-compliance issues) and a weakening of the economy.

Italian government bond yields rose sharply as concerns over the rescue of the debt-heavy major bank Monte dei

Paschi di Siena and Italian referendum weighed heavily on the European bond market. However, the Italian

government’s intervention to rescue the struggling banking sector towards the end of the quarter failed to stop the bond

rout.

Greek bond yields fell on the hopes of debt relief measures. However, this was later put on hold by the country’s

creditors following the government’s decision to spend additional funds on pensions. 11

Spread (bps) 12/31/2016 9/30/2016 12/31/2015 Quarterly Change (bps) 1-Year Change (bps)

U.S. Aggregate 43 47 56 -4 -13

Long Gov't 3 3 4 0 -1

Long Credit 167 195 225 -28 -58

Long Gov't/Credit 104 118 138 -14 -34

MBS 15 14 24 1 -9

CMBS 75 84 121 -9 -46

ABS 59 55 72 4 -13

Corporate 123 138 165 -15 -42

High Yield 409 480 660 -71 -251

Global Emerging Markets 288 299 389 -11 -101

Source: Barclays Live

Credit Spreads

During the fourth quarter, credit spreads were mixed across all the areas of the bond market.

ABS bonds spreads (4 basis points) rose by the most over the quarter, followed by MBS bonds (1 basis point),

whereas high yield spreads (-71 basis points) and long-dated credit (-28 basis points) fell by the most over the quarter.

12

Commodities

The Bloomberg Commodity Index rose during the fourth quarter, returning 2.66%.

Over the quarter, the best performing segment was Livestock with a return 20.84%, followed by the Energy sector

which returned 10.58%.

Precious Metals was the worst performing sector during the quarter with a return of -14.05%.

13

Currency

As measured through the broad trade weighted U.S. dollar index, the U.S. dollar rose sharply over the quarter.

The US dollar appreciated sharply against all major currencies as expectations of greater fiscal spending and

increased number of future interest rate hikes led to significant US dollar inflows. The pound was dragged down by

worries over the possibility of a hard-Brexit. The yen depreciated sharply against the dollar owing to the divergent

monetary policy stances by the two central banks.

14

Hedge Fund

Hedge fund performance was positive across all strategies with the exception of Global Macro and Emerging Markets.

The HFRI Fund-Weighted Composite Index and the HFRI Fund of Funds Composite Index produced returns of 1.31%

and 0.83%, respectively, during the quarter.

Distressed-Restructuring was the best performer, with a return of 4.02% in the fourth quarter.

15

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

$0

$100

$200

$300

$400

$500

$600

2Q08 1Q09 4Q09 3Q10 2Q11 1Q12 4Q12 3Q13 2Q14 1Q15 4Q15 3Q16

# o

f Deals

Valu

e (

$ B

illi

on

s)

Deal Value ($ Billions)

Number of Deals 9.7 x9.1 x

7.7 x8.5 x 8.8 x 8.7x 8.8x

9.8x10.3x 10.5x

0.0 x

2.0 x

4.0 x

6.0 x

8.0 x

10.0 x

12.0 x

Senior Debt/EBITDA Sub Debt/EBITDA Equity/EBITDA

Private Equity Market Overview – Third Quarter 2016

Source: Preqin

Source: S&P

LTM Global Private Equity-Backed Buyout Deal Volume

Purchase Price Multiples

Sources: 1 Preqin 2 Standard & Poors 3 PWC / National Venture Capital Association (NVCA) MoneyTree Report 4 PitchBook 5 Fitch Ratings 6 Thomson Reuters 7 UBS

Notes: FY: Fiscal year ended 12/31; YTD: Year to date; LTM: Last twelve months (aka trailing twelve months); PPM: Purchase Pr ice Multiples: Total Purchase Price / EBITDA.

Fundraising: In 3Q 2016, $108.4 billion was raised by 243 funds, which was down 21.3% on a capital basis and 13.2% by number of deals from the prior quarter. On a YTD basis, private equity fundraising

totaled $357.2 billion, which was up 6.8% year on year 1. Dry powder was up roughly 4.5% compared to 2Q 2016’s peak of $1.2 trillion and remained well above the five year average level of $910.4 billion 1.

Buyout: Global private equity-backed buyout deals totaled $90.6 billion in the third quarter, which was down 9.2% from the prior quarter, but above the five year quarterly average of $82.7 billion 1. At the end of 3Q 2016, average purchase price multiples for all U.S. LBOs were 10.5x EBITDA, up from 10.1x as of the end of 2Q 2016. Both large cap and middle-market purchase price multiples increased on a YTD basis quarter over quarter. Middle-market purchase price multiples increased from 8.2x through 1H 2016 to 9.9x through 3Q 2016 2. The weighted average purchase price multiple across all European transaction sizes averaged 10.1x EBITDA through 3Q 2016. Purchase prices for transactions of €1.0 billion or more decreased slightly from 11.0x in 2Q 2016 to 10.9x in 3Q 2016. Transactions between €500.0 million and €1.0 billion were up 0.1x quarter over quarter, and stood at 10.6x 2. Globally, exit value totaled $87.9 billion on 448 deals in 3Q 2016, down 6.7% and 7.4%, respectively, from 2Q 2016 1.

Venture: $10.6 billion of capital was deployed across 891 deals in the third quarter compared to $15.6 billion across 999 deals in 2Q 2016 3. This was 36.4% lower than 3Q 2015 on a capital basis, but remains

flat with the five year quarterly average level. Total U.S. venture-backed exit activity slowed by 2.3% during the quarter, totaling $14.6 billion across 162 completed transactions. YTD U.S. exit value stood at

$38.6 billion compared to $49.0 billion in 2015 4.

Mezzanine: 15 funds closed on $4.7 billion during the quarter, up from 2Q 2016’s total of $2.5 billion raised by six funds. This was down compared to 3Q 2015’s total of $5.1 billion raised by nine funds, but was

31.1% higher than the five year quarterly average. Estimated dry powder was $50.7 billion at the end of 3Q 2016, up 9.9% from 2Q 2016 1. Fundraising remains competitive with an estimated 74 funds in market

targeting $32.9 billion of commitments in addition to continued market participation from private lending platforms and business development companies (BDCs) 1.

Distressed Debt: High-yield defaults slowed in 3Q to $10.1 billion compared to $34.7 billion a quarter ago. YTD defaults totaled $63.5 billion through 3Q 2016, significantly above 2015’s full year total of $48.3

billion. The LTM U.S. high-yield default rate was 4.9% as of August 2016, which was flat relative to 2Q 2016 5. Default rates are expected to decline due to the stabilization of crude oil prices and improved

conditions in the high yield market 5. Distressed debt and bankruptcy restructuring activity totaled $115.8 billion in 3Q 2016, bringing 3Q 2016 YTD activity to $168.4 billion, which was up 67.0% from the same

period a year ago. U.S. activity accounted for $97.4 billion on a YTD basis, representing a 200.5% increase from 3Q 2015 6.

Secondaries: Nine funds raised $3.3 billion during the third quarter, down from $13.0 billion by nine funds in 2Q 2016. On an LTM basis, secondary capital raised totaled $28.2 billion, up from the $21.0 billion

five year annual average 1. The average discount rate for all private equity sectors decreased quarter over quarter from 8.6% to 8.5% and remains very favorable for potential sellers 7.

Infrastructure: $22.9 billion of capital was raised by 17 funds in 3Q 2016 compared to $6.6 billion of capital closed on by 10 partnerships in 2Q 2016. At the end of the quarter, dry powder stood at $139.0

billion, down slightly from last quarter’s record total of $142.0 billion 1. Infrastructure managers completed 280 deals with an estimated aggregate deal value of $108.4 billion in 3Q 2016 compared to 313 deals

totaling $154.6 billion a quarter ago 1.

Natural Resources: During 3Q 2016, 10 funds closed on $9.7 billion compared to nine funds totaling $3.9 billion in 2Q 2016. Energy and utilities industry managers completed an estimated 143 deals totaling a

reported $18.0 billion through 3Q 2016, representing 77.2% of 2015’s full year deal value 1.

16

Demand Drivers Rebound

Net Absorption Turns Positive

Declining Vacancy

Growth in Rental Rates

Construction Reignites

YE 2011

YE 2010

YE 2012

YE 2013

YE 2015

YE 2014

YE 2016

U.S. Commercial Real Estate Markets

U.S. private market real estate performed well on a relative basis in 2016, despite its clear moderating trend following f ive years of above average performance. The NFI-ODCE is now performing

back in line with the sector’s long term average, registering 8.72%* for the calendar year. Income growth for the year (4.48%)* outpaced appreciation (4.09%)* as expected, illustrating that

income growth has become the larger driver of sector returns at this mature point in the real estate cycle. We expect these trends to continue in 2017.

The U.S. REIT sector posted similar gains for the year, up 8.5% (FTSE NAREIT Equity REIT Index), but it was a bumpy road with elevated volatility quarter to quarter. In the fourth quarter REITs

declined by 2.9%; this was led by interest rate concerns and mid-quarter jitters over the U.S. presidential election. Post-election enthusiasm for better economic growth appeared to buoy the

sector as it rallied ahead of the broader equity markets late in the quarter. U.S. REITs ended the year trading at an approximate 1.5% premium to NAVs, although excluding the healthcare and

net lease sectors, the REIT sector ended the year at an approximate 4% discount to private market valuations.

Capital flows were robust throughout 2016, exceeding $100bn in final closings for the fourth year in a row. Current signs indicate that the asset class should continue to attract significant levels of

new capital in 2017. Notable trends in 2016 included a significant increase in average Fund size, while the number of final closings fell. There was increased investment in Real Estate Debt

funds, while capital closed for Opportunistic funds fell significantly.

Dry powder for higher risk investments currently stands at an all time peak. While this should help support current sector pricing for a bit longer, moderating trends in underlying fundamentals (for

example rent growth), supply-demand balance, interest rates, and economic tailwinds raise investment risk levels at this mature point in the cycle. The outcome of the U.S. election and Brexit, as

well as other potential leadership changes in Europe, have also added further risk in relation to political uncertainty globally. To-date, U.S. real estate has not illustrated any fundamental

adjustments from these cumulative factors with the exception of a handful of firms with international exposure; if anything, the U.S. continues to benefit as a global safe(r) haven.

As we enter 2017, the U.S. real estate cycle is mature, and thus more susceptible to bumps along the road. While solid income returns are forecasted to continue to support attractive relative

returns against many other asset classes, portfolio construction consideration is essential. At this point in the cycle, appropriate risk mitigation measures should be a staple in all investment

portfolios as new investments will likely be required to ride out a cyclical downturn.

*Indicates preliminary NFI-ODCE data gross of fees

Stages of Fundamental Recovery in the Real Estate Market Cycle

SOURCE:AON HEWITT 12/30/2016

17


Writeup

18

Total Fund

19

Change in Market ValueFrom October 1, 2016 to December 31, 2016

Summary of Cash Flow

$0.0

$3,000.0

$6,000.0

$9,000.0

$12,000.0

($3,000.0)

Millio

ns

($)

Beginning Market Value Net Additions / Withdrawals Investment Earnings Ending Market Value

$7,219.4

($118.2)

$86.9

$7,188.2

1Quarter

Jul-2016To

Dec-2016

1Year

Total Fund

Beginning Market Value 7,219,400,785 6,768,253,446 6,773,560,453

+ Additions / Withdrawals -118,168,913 61,121,096 -146,195,486

+ Investment Earnings 86,920,681 358,778,011 560,787,586

= Ending Market Value 7,188,152,553 7,188,152,553 7,188,152,553

Total Fund

Total Plan Asset Summary

As of December 31, 2016

20

Return Summary

Quarterly Excess Performance Ratio of Cumulative Wealth - 10 Years

Total Fund Total Fund Policy Benchmark

0.0

4.0

8.0

12.0

16.0

Re

turn

1Quarter

FYTD 1Year

3Years

5Years

10Years

Inception1/1/89

0.6

4.0

7.9

5.1

8.7

5.6

8.4

1.2

5.1

8.3

4.9

9.0

5.4

8.9

Total Fund Benchmark

0.93

0.96

0.99

1.02

1.05

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

0.98

Quarterly Out Performance Quarterly Under Performance

0.0%

2.0%

4.0%

-2.0 %

-4.0 %

-6.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

Total Plan Performance Summary (Net)

As of December 31, 2016Total Fund

*Returns beginning July 1,2010 are shown on a net of fees basis. Prior periods are shown on a gross of fees basis.

21

Return Summary


0.0

4.0

8.0

12.0

16.0

Re

turn

1Quarter

FYTD 1Year

3Years

5Years

10Years

Inception1/1/89

0.6

4.0

7.9

5.1

8.7

5.6

8.4

1.2

5.2

8.5

5.1

9.3

5.6

8.9

Total Fund

Total Plan Performance Summary (Gross)


All trailing periods are shown on a gross of fees basis.

22

Allocation

MarketValue ($)

%

Performance(%)

1Quarter

FYTD1

Year3

Years5

Years10

YearsSince

InceptionInception

Date

Total Fund 7,188,152,553 100.0 1.2 (25) 5.1 (18) 8.3 (15) 4.9 (19) 9.0 (18) 5.4 (24) 8.9 (5) 01/01/1989

Total Fund Policy Benchmark 0.6 (55) 4.0 (48) 7.9 (26) 5.1 (15) 8.7 (28) 5.6 (17) 8.4 (35)All Public Plans-Total Fund Median 0.6 3.9 6.9 4.2 8.1 5.0 8.1

Total U.S. Equity 1,688,385,642 23.5 5.0 (22) 11.0 (10) 12.9 (44) 7.5 (61) 14.4 (41) 7.2 (22) 10.6 01/01/1989

U.S. Equity Benchmark 4.1 (51) 8.8 (49) 12.6 (50) 8.4 (32) 14.6 (29) 7.6 (13) 10.1All Public Plans-US Equity Segment Median 4.1 8.7 12.6 7.9 14.1 6.9

Total Non-U.S. Equity 1,160,012,159 16.1 -2.0 (44) 4.7 (41) 4.5 (31) -1.2 (51) 5.8 (61) 0.3 (95) 7.2 04/01/1995

Non-U.S. Equity Benchmark -1.7 (37) 5.3 (24) 4.8 (25) -1.5 (64) 5.3 (72) 1.2 (66) 5.2All Public Plans-Intl. Equity Segment Median -2.3 4.4 3.4 -1.2 6.3 1.3

Total Global Equity 342,816,095 4.8 -0.6 3.8 6.7 1.7 8.6 06/01/2012

MSCI AC World Index (Net) 1.2 6.6 7.9 3.1 10.1

Total U.S. Fixed Income 1,525,892,337 21.2 -1.9 (41) -1.3 (55) 2.2 (86) 2.1 (88) 2.3 (69) 4.9 (32) 6.7 04/01/1989

U.S. Fixed Income Benchmark -2.0 (47) -1.7 (66) 2.0 (88) 2.4 (81) 1.9 (79) 3.8 (81) 5.6All Public Plans-US Fixed Income Segment Median -2.1 -1.0 4.3 3.2 2.9 4.6

Total Non-U.S. Fixed Income 14,757 0.0

Total Emerging Market Debt 316,508,235 4.4 -4.6 -1.4 10.1 0.3 2.0 1.5 07/01/2011

Emerging Market Debt Benchmark -5.3 -2.2 10.1 0.1 1.8 1.1

Total Real Estate 672,031,412 9.3 1.5 (61) 4.6 (24) 13.6 (2) 11.6 (29) 11.8 (51) 4.5 9.1 01/01/1989

Real Estate Benchmark 1.9 (32) 4.2 (32) 10.3 (22) 11.7 (27) 11.9 (42) 6.6 8.4All Public Plans-Real Estate Segment Median 1.7 3.4 8.7 11.0 11.9

Total Private Equity/Infrastructure 1,002,763,305 14.0 5.5 8.5 10.9 12.7 10/01/2014

Private Equity/Infrastructure Benchmark 2.4 4.9 10.0 10.0

Total Opportunity Fund 221,877,496 3.1 4.5 8.5 11.0 7.0 06/01/2014

Opportunity Benchmark 0.5 5.0 7.1 2.2

Total Cash 211,669,594 2.9 0.0 0.2 0.3 0.2 0.2 1.6 2.4 10/01/1999

iMoneyNet - All Taxable Money Funds Index 0.5 0.9 1.5 0.7 0.5 1.0 1.8

Total Overlay 46,181,522 0.6 -0.1 0.1 0.2 0.2 0.3 0.5 01/01/2009

AHIC U.S. T-Bill 0.0 0.1 0.1 0.0 0.0 0.0

*Real Estate and Private Equity/Infrastructure returns and market values are shown on a one-quarter lag. The market values have been adjusted for current quarter cash flows. Prior to3Q2014, the publicly-traded portion of the real estate portfolio (REITs) are reported in real time.*The returns shown for the Total Overlay represent the impact of the Clifton Overlay service on the Total Fund return.

Asset Allocation & Performance


23

Allocation

MarketValue ($)

%

Performance(%)

1Quarter

FYTD1

Year3

Years5

Years10

YearsSince

InceptionInception

Date

Total Fund 7,188,152,553 100.0 1.2 5.1 8.3 4.9 9.0 5.4 8.9 01/01/1989

Total Fund Policy Benchmark 0.6 4.0 7.9 5.1 8.7 5.6 8.4

Total U.S. Equity 1,688,385,642 23.5 5.0 11.0 12.9 7.5 14.4 7.2 10.6 01/01/1989

U.S. Equity Benchmark 4.1 8.8 12.6 8.4 14.6 7.6 10.1

BlackRock S&P 500 Index Fund 507,242,059 7.1 3.8 7.8 12.0 8.9 14.7 11.7 03/01/2011

S&P 500 Index 3.8 7.8 12.0 8.9 14.7 11.7

BlackRock Russell 1000 Growth 263,550,674 3.7 1.0 5.7 7.1 8.6 14.5 11.7 03/01/2011

Russell 1000 Growth Index 1.0 5.6 7.1 8.6 14.5 11.7

Dodge & Cox Large Cap Value 256,856,088 3.6 10.8 20.4 21.5 8.8 17.1 6.4 10.3 05/01/2003

Russell 1000 Value Index 6.7 10.4 17.3 8.6 14.8 5.7 9.2

BlackRock Russell 2000 Growth 124,865,361 1.7 3.7 13.4 11.8 5.4 14.4 12/01/2012

Russell 2000 Growth Index 3.6 13.1 11.3 5.1 14.0

DFA Small Cap Value 64,757,407 0.9 15.3 24.6 28.6 7.8 16.8 8.1 13.1 10/01/1995

Russell 2000 Value Index 14.1 24.2 31.7 8.3 15.1 6.3 10.3

Fisher Small Cap Value 58,694,528 0.8 10.4 16.9 20.5 7.6 14.8 11.7 10/01/2008

Russell 2000 Value Index 14.1 24.2 31.7 8.3 15.1 9.7

Allianz Convertibles 198,738,578 2.8 1.1 7.4 6.1 3.9 9.5 8.0 10.0 10/01/1995

Convertibles Benchmark 2.1 8.3 10.4 5.3 10.9 6.4 7.5

Allianz Strucutred Alpha 213,680,948 3.0 6.8 11/01/2016

S&P 500 Index 5.8

Total Non-U.S. Equity 1,160,012,159 16.1 -2.0 4.7 4.5 -1.2 5.8 0.3 7.2 04/01/1995

Non-U.S. Equity Benchmark -1.7 5.3 4.8 -1.5 5.3 1.2 5.2

BlackRock MSCI ACW ex-U.S. 698,764,062 9.7 -1.6 5.4 4.6 -1.3 5.5 1.4 03/01/2011

MSCI AC World ex USA IMI (Net) -1.6 5.4 4.4 -1.4 5.3 1.3

Brandes International Value 164,891,746 2.3 2.1 8.3 2.4 0.6 8.4 1.8 9.4 04/01/1995

Performance Benchmark -0.7 5.7 1.0 -1.6 6.5 1.9 5.3

GMO International Small Cap 60,108,512 0.8 -2.4 5.4 0.0 -1.6 8.4 3.2 10.0 07/01/2002

Non-U.S. Small Cap Benchmark -3.1 4.6 3.8 2.0 9.7 3.0 9.3

Copper Rock International Small Cap 48,181,782 0.7 -7.2 -1.1 -3.4 04/01/2016

Non-U.S. Small Cap Benchmark -3.1 4.6 3.2

Aberdeen 123,181,752 1.7 -5.4 -0.1 12.3 -1.7 2.1 3.5 01/01/2010

MSCI Emerging Markets Index (Net) -4.2 4.5 11.2 -2.6 1.3 0.5

Neuberger Berman 64,884,305 0.9 -5.9 2.3 9.6 -0.7 03/01/2014

MSCI Emerging Markets Index (Net) -4.2 4.5 11.2 -1.5



24



Allocation

MarketValue ($)

%

Performance(%)

1Quarter

FYTD1

Year3

Years5

Years10

YearsSince

InceptionInception

Date



GMO Global Equity Allocation 168,067,317 2.3 0.0 5.6 8.0 0.3 7.7 06/01/2012


Walter Scott Global Equity 174,748,777 2.4 -1.2 2.1 5.6 3.1 9.5 06/01/2012


Total U.S. Fixed Income 1,525,892,337 21.2 -1.9 -1.3 2.2 2.1 2.3 4.9 6.7 04/01/1989

U.S. Fixed Income Benchmark -2.0 -1.7 2.0 2.4 1.9 3.8 5.6

Metropolitan West 459,679,103 6.4 -1.6 -1.1 2.0 2.0 2.4 5.4 5.4 07/01/2001

Barclays Intermediate Aggregate Bond Index -2.0 -1.7 2.0 2.4 1.9 4.2 4.6

PIMCO 361,979,160 5.0 -1.9 -0.7 2.6 1.9 2.3 4.9 7.6 01/01/1989

Barclays Intermediate Aggregate Bond Index -2.0 -1.7 2.0 2.4 1.9 4.2 6.4

BlackRock Intermediate Aggregate 704,234,073 9.8 -2.1 -1.8 1.8 2.4 1.9 2.6 07/01/2011

Barclays Intermediate Aggregate Bond Index -2.0 -1.7 2.0 2.4 1.9 2.6



Wellington 102,213,980 1.4 -2.9 2.0 12.8 5.8 6.2 5.7 07/01/2011

JPM EMBI Global -4.2 -0.6 10.2 5.6 5.4 5.5

Stone Harbor 112,632,736 1.6 -4.8 -1.8 11.1 -0.1 0.9 0.1 07/01/2011

Performance Benchmark -5.1 -1.9 10.2 1.0 2.3 1.6

Investec 101,661,520 1.4 -6.0 -4.3 6.4 -5.3 03/01/2014

JPM GBI-EM Global Diversified -6.1 -3.6 9.9 -4.0

Total Real Estate 672,031,412 9.3 1.5 4.6 13.6 11.6 11.8 4.5 9.1 01/01/1989

Real Estate Benchmark 1.9 4.2 10.3 11.7 11.9 6.6 8.4

Private Real Estate 672,031,412 9.3 1.4 4.4 13.5 12.4 12.1 4.3 8.6 10/01/1990

NCREIF ODCE Index + 50 bps 2.0 4.0 9.6 12.0 11.9 5.6 6.9



Total Private Equity 882,109,220 12.3 6.1 9.6 14.5 15.0 16.2 15.8 10/01/2011

Private Equity Benchmark 2.4 4.9 10.0 10.0 10.0 10.0

GCM - PE 418,648,756 5.8 4.6 8.6 16.4 15.6 17.2 16.9 10/01/2011


Stepstone - Private Equity 463,460,464 6.4 7.5 10.4 12.4 14.4 15.2 14.6 10/01/2011


25



Allocation

MarketValue ($)

%

Performance(%)

1Quarter

FYTD1

Year3

Years5

Years10

YearsSince

InceptionInception

Date

Total Infrastructure 120,654,085 1.7 1.6 1.5 -7.5 5.5 01/01/2015

Infrastructure Benchmark 2.4 4.9 10.0 10.0

GCM Infrastructure 69,636,100 1.0 3.0 5.0 3.0 15.4 01/01/2015


Stepstone Infrastructure 51,017,985 0.7 -0.6 -3.4 -21.5 -7.6 01/01/2015




Torchlight Debt Opportunity Fund IV 52,768,876 0.7 4.8 7.7 10.0 8.5 02/01/2014

NCREIF ODCE Index (Net) 1.9 3.7 7.8 11.4

Grosvenor Credit Opportunities 133,246,182 1.9 4.9 9.7 12.5 4.2 06/01/2014

50%/50% Credit Suisse HY and Distressed 3.1 7.4 12.0 1.4


Mesa West 12,207,187 0.2 2.8 5.5 11.0 10.9 8.6 12/01/2013

NCREIF ODCE Index (Net) 1.9 3.7 7.8 11.0 11.8

Torchlight Debt Opportunity Fund V 5,429,856 0.1 3.4 13.4 15.2 -156.6 06/01/2015


Davidson Kempner 18,225,395 0.3 -1.8 -4.0 -12.5 06/01/2016

Opportunity Benchmark 0.5 5.0 4.7

Total Cash 211,669,594 2.9 0.0 0.2 0.3 0.2 0.2 1.6 2.4 10/01/1999


SDCERS Cash 182,088,132 2.5 0.0 0.2 0.2 0.2 0.2 1.8 2.5 10/01/1999


Total Overlay 46,181,522 0.6 -0.1 0.1 0.2 0.2 0.3 0.5 01/01/2009

AHIC U.S. T-Bill 0.0 0.1 0.1 0.0 0.0 0.0

The Clifton Group - Overlay 46,181,522 0.6 -0.1 0.1 0.2 0.1 0.3 0.5 01/01/2009

AHIC U.S. T-Bill 0.0 0.1 0.1 0.0 0.0 0.0

The time-weighted returns shown for Total Private Equity and Total Infrastructure do not provide a very meaningful analysis, especially for newer investments. As of9/30/2016, the since inception IRRs reported by SDCERS’ private equity and infrastructure advisors are as follows:-GCM Private Equity (since 11/09): 17.1%, Stepstone Private Equity (Since 10/09): 15.6%-GCM Infrastructure (since 10/11): 10.0%, Stepstone Infrastructure (Since 3/12): 0.6%*Real Estate, Private Equity and Infrastructure returns and market values are shown on a one-quarter lag. The market values have been adjusted for current quarter cashflows. Prior to 3Q2014, the publicly-traded portion of the real estate portfolio (REITs) are reported in real time.*The returns shown for the Total Overlay represent the impact of the Clifton Overlay service on the Total Fund return.*The Torchlight IV, Mesa West, and Torchlight V investments are early in their investment periods and therefore the time weighted returns above are less meaningful. Time-weighted performance will become more meaningful over time and as the funds mature.*Beginning 1/1/16, Mesa West and Torchlight V moved from Real Estate to the Opportunity Fund, and Carlyle and LaSalle moved from the Opportunity Fund to Real Estate. Composite

performance will reflect the new categorizations effective 1/1/2016. Historical Real Estate and Opportunity Fund composite performance is unchanged.

26

-7.0

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

Re

turn

1Quarter

FYTD1

Year3

Years5

Years10

Years20 Years Since Inception

Total Fund 1.2 (25) 5.1 (18) 8.3 (15) 4.9 (19) 9.0 (18) 5.4 (24) 7.9 (5) 8.9 (5)¢

Total Fund Policy Benchmark 0.6 (55) 4.0 (48) 7.9 (26) 5.1 (15) 8.7 (28) 5.6 (17) 7.6 (9) 8.4 (35)�

5th Percentile 2.1 6.0 9.2 5.7 9.8 6.0 7.7 8.9

1st Quartile 1.2 4.8 7.9 4.8 8.8 5.4 7.1 8.5

Median 0.6 3.9 6.9 4.2 8.1 5.0 6.7 8.1

3rd Quartile 0.2 3.2 6.0 3.7 7.4 4.6 6.4 7.8

95th Percentile -0.7 1.6 4.1 2.5 6.1 3.8 5.6 7.3

Population 411 411 404 388 376 259 92 36

Total Fund

Plan Sponsor Peer Group Analysis


All Public Plans-Total Fund

Parentheses contain percentile rankings.*The plan sponsor universe shown above represents the All Public Fund Universe obtained from BNY Mellon and Investment Metrics

27

Annualized Return vs. Annualized Standard Deviation5 Years

Rolling 5 Years Standard Deviation

5 Years Historical Statistics

Total Fund

Total Fund Policy Benchmark

Citigroup 3 Month T-Bill

-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

15.0

Re

turn

(%)

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


0.0

3.0

6.0

9.0

12.0

15.0

18.0

21.0

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

ActiveReturn

TrackingError

InformationRatio

R-SquaredSharpeRatio

Alpha Beta ReturnStandardDeviation

ActualCorrelation

Total Fund 0.29 0.72 0.41 0.99 1.49 -0.03 1.04 9.02 5.91 0.99

Total Fund Policy Benchmark 0.00 0.00 N/A 1.00 1.50 0.00 1.00 8.72 5.66 1.00

Citigroup 3 Month T-Bill -8.51 5.66 -1.50 0.01 N/A 0.10 0.00 0.09 0.05 -0.10

Total Fund Risk Profile

As of December 31, 2016Total Fund

28

Attribution

Total Fund

*The Attribution Chart shown above captures the impact of the Clifton Overlay Program’s performance in the respective asset classes that the cash was equitized to.

*The Allocation Effect represents the overweight or underweight positions relative to Policy based on the asset class exposure, which includes the cash that is overlaid by

the Clifton Group.


Total Fund, 64

Cash Flow Effect, -11

Allocation Effect, 11

Opportunity Fund, 11

Private Equity/ Infrastructure, 45

Real Estate, -6

EMD, 3


Global Equity, -9

Non-U.S. Equity, -6

U.S. Equity, 22

-75 -50 -25 0 25 50 75

Attribution Analysis 3 Months Ending 12/31/2016

29

Asset Allocation

*The Asset Allocation in the top chart includes the allocation of the cash overlaid by the Clifton Group.

Total Fund As of December 31, 2016

24.3%

16.9%

4.8%

23.2%

4.4%

9.3%

14.0%

3.1%

23.9%

17.0%

5.0%

23.1%

5.0%

11.0%12.0%

3.0%

0.4%

0.0% -0.2%

0.1%

-0.6%-1.7%

2.0%

0.1%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Total U.S.Equity

Total Non-U.S.Equity

Total GlobalEquity

Total U.S. FixedIncome

Total EmergingMarket Debt

Total RealEstate

Total PrivateEquity/

Infrastructure

TotalOpportunity

Fund

SDCERS - Asset Allocation vs. Policy TargetsAs of 12/31/2016

Actual Allocation Policy Target Difference

30

U.S. Equity Non-U.S. Equity Global Equity U.S. FIxed Income Emerging Market Debt

Non-U.S. Fixed Income Opportunity Fund Real Estate Private Equity Market Neutral

Cash Infrastructure Overlay Transition

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

Allo

ca

tio

n (%

)

12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16

Total Fund

Historical Asset Allocation by Segment

10 Years Ending December 31, 2016

Total Fund

31


Writeup

32

Universe Rank & Calendar Year Returns

33

Allocation

MarketValue ($)

%

Performance(%)

1Quarter

FYTD1

Year3

Years5

Years10

YearsSince

InceptionInception

Date

Total Fund 7,188,152,553 100.0 1.2 (25) 5.1 (18) 8.3 (15) 4.9 (19) 9.0 (18) 5.4 (24) 8.9 (5) 01/01/1989

Total Fund Policy Benchmark 0.6 (55) 4.0 (48) 7.9 (26) 5.1 (15) 8.7 (28) 5.6 (17) 8.4 (35)All Public Plans-Total Fund Median 0.6 3.9 6.9 4.2 8.1 5.0 8.1

Total U.S. Equity 1,688,385,642 23.5 5.0 (22) 11.0 (10) 12.9 (44) 7.5 (61) 14.4 (41) 7.2 (22) 10.6 01/01/1989

U.S. Equity Benchmark 4.1 (51) 8.8 (49) 12.6 (50) 8.4 (32) 14.6 (29) 7.6 (13) 10.1All Public Plans-US Equity Segment Median 4.1 8.7 12.6 7.9 14.1 6.9

BlackRock S&P 500 Index Fund 507,242,059 7.1 3.8 (48) 7.8 (46) 12.0 (34) 8.9 (18) 14.7 (26) 11.7 (23) 03/01/2011

S&P 500 Index 3.8 (48) 7.8 (46) 12.0 (34) 8.9 (18) 14.7 (26) 11.7 (23)IM U.S. Large Cap Equity (SA+CF) Median 3.7 7.6 10.3 7.7 13.9 6.7 10.9

BlackRock Russell 1000 Growth 263,550,674 3.7 1.0 (90) 5.7 (72) 7.1 (82) 8.6 (31) 14.5 (34) 11.7 (31) 03/01/2011

Russell 1000 Growth Index 1.0 (90) 5.6 (72) 7.1 (82) 8.6 (31) 14.5 (34) 11.7 (31)IM U.S. Large Cap Core Equity (SA+CF) Median 3.7 7.4 9.9 7.9 13.9 6.7 11.0

Dodge & Cox Large Cap Value 256,856,088 3.6 10.8 (5) 20.4 (3) 21.5 (6) 8.8 (21) 17.1 (3) 6.4 (44) 10.3 (17) 05/01/2003

Russell 1000 Value Index 6.7 (45) 10.4 (52) 17.3 (21) 8.6 (25) 14.8 (26) 5.7 (68) 9.2 (60)IM U.S. Large Cap Value Equity (SA+CF) Median 6.4 10.5 13.9 7.4 13.8 6.2 9.5

BlackRock Russell 2000 Growth 124,865,361 1.7 3.7 (10) 13.4 (2) 11.8 (5) 5.4 (72) 14.4 (12) 12/01/2012

Russell 2000 Growth Index 3.6 (12) 13.1 (2) 11.3 (6) 5.1 (76) 14.0 (16)IM U.S. Large Cap Growth Equity (SA+CF) Median 0.0 5.0 4.0 6.5 13.2 7.4 12.7

DFA Small Cap Value 64,757,407 0.9 15.3 (11) 24.6 (12) 28.6 (28) 7.8 (48) 16.8 (17) 8.1 (35) 13.1 (4) 10/01/1995

Russell 2000 Value Index 14.1 (24) 24.2 (15) 31.7 (10) 8.3 (37) 15.1 (46) 6.3 (81) 10.3 (91)IM U.S. Small Cap Value Equity (SA+CF) Median 11.9 20.3 24.9 7.7 14.8 7.5 11.3

Fisher Small Cap Value 58,694,528 0.8 10.4 (66) 16.9 (74) 20.5 (73) 7.6 (52) 14.8 (50) 11.7 (37) 10/01/2008

Russell 2000 Value Index 14.1 (24) 24.2 (15) 31.7 (10) 8.3 (37) 15.1 (46) 9.7 (78)IM U.S. Small Cap Value Equity (SA+CF) Median 11.9 20.3 24.9 7.7 14.8 7.5 11.1

Allianz Convertibles 198,738,578 2.8 1.1 (29) 7.4 (25) 6.1 (53) 3.9 (34) 9.5 (24) 8.0 10.0 10/01/1995

Convertibles Benchmark 2.1 (10) 8.3 (19) 10.4 (21) 5.3 (15) 10.9 (1) 6.4 7.5IM Convertible Bonds (MF) Median 0.7 5.8 6.2 3.1 8.7

Allianz Strucutred Alpha 213,680,948 3.0 6.8 11/01/2016

S&P 500 Index 5.8

Total Non-U.S. Equity 1,160,012,159 16.1 -2.0 (44) 4.7 (41) 4.5 (31) -1.2 (51) 5.8 (61) 0.3 (95) 7.2 04/01/1995

Non-U.S. Equity Benchmark -1.7 (37) 5.3 (24) 4.8 (25) -1.5 (64) 5.3 (72) 1.2 (66) 5.2All Public Plans-Intl. Equity Segment Median -2.3 4.4 3.4 -1.2 6.3 1.3

BlackRock MSCI ACW ex-U.S. 698,764,062 9.7 -1.6 (35) 5.4 (37) 4.6 (41) -1.3 (52) 5.5 (63) 1.4 (67) 03/01/2011

MSCI AC World ex USA IMI (Net) -1.6 (35) 5.4 (37) 4.4 (42) -1.4 (53) 5.3 (64) 1.3 (69)IM International Equity (SA+CF) Median -3.1 3.9 2.9 -1.2 6.3 1.9 2.4

Brandes International Value 164,891,746 2.3 2.1 (8) 8.3 (15) 2.4 (54) 0.6 (26) 8.4 (27) 1.8 (54) 9.4 (8) 04/01/1995

Performance Benchmark -0.7 (26) 5.7 (34) 1.0 (63) -1.6 (56) 6.5 (47) 1.9 (53) 5.3 (85)IM International Equity (SA+CF) Median -3.1 3.9 2.9 -1.2 6.3 1.9 6.5

GMO International Small Cap 60,108,512 0.8 -2.4 (31) 5.4 (37) 0.0 (52) -1.6 (90) 8.4 (80) 3.2 (62) 10.0 (39) 07/01/2002

Non-U.S. Small Cap Benchmark -3.1 (38) 4.6 (43) 3.8 (29) 2.0 (42) 9.7 (65) 3.0 (70) 9.3 (66)IM International Small Cap Equity (SA+CF) Median -4.0 4.0 0.1 1.4 10.5 3.8 9.9

Copper Rock International Small Cap 48,181,782 0.7 -7.2 (89) -1.1 (94) -3.4 (98) 04/01/2016

Non-U.S. Small Cap Benchmark -3.1 (40) 4.6 (47) 3.2 (47)IM International Small Cap Equity (SA+CF) Median -3.7 4.5 1.1 2.4 11.5 4.7 2.4

Aberdeen 123,181,752 1.7 -5.4 (62) -0.1 (78) 12.3 (27) -1.7 (36) 2.1 (56) 3.5 (18) 01/01/2010

MSCI Emerging Markets Index (Net) -4.2 (42) 4.5 (35) 11.2 (35) -2.6 (55) 1.3 (70) 0.5 (67)IM Emerging Markets Equity (SA+CF) Median -4.6 3.1 9.0 -2.4 2.3 2.0 1.2

Asset Allocation & Performance with Ranks


34



Allocation

MarketValue ($)

%

Performance(%)

1Quarter

FYTD1

Year3

Years5

Years10

YearsSince

InceptionInception

Date

Neuberger Berman 64,884,305 0.9 -5.9 (67) 2.3 (57) 9.6 (47) -0.7 (37) 03/01/2014

MSCI Emerging Markets Index (Net) -4.2 (42) 4.5 (35) 11.2 (35) -1.5 (48)IM Emerging Markets Equity (SA+CF) Median -4.6 3.1 9.0 -2.4 2.3 2.0 -1.6

Total Global Equity 342,816,095 4.8 -0.6 (57) 3.8 (63) 6.7 (45) 1.7 (73) 8.6 (83) 06/01/2012

MSCI AC World Index (Net) 1.2 (40) 6.6 (39) 7.9 (36) 3.1 (49) 10.1 (64)IM Global Equity (SA+CF) Median 0.3 5.1 6.2 3.1 10.1 4.1 10.7

GMO Global Equity Allocation 168,067,317 2.3 0.0 (53) 5.6 (47) 8.0 (35) 0.3 (87) 7.7 (90) 06/01/2012


Walter Scott Global Equity 174,748,777 2.4 -1.2 (63) 2.1 (76) 5.6 (54) 3.1 (49) 9.5 (74) 06/01/2012


Total U.S. Fixed Income 1,525,892,337 21.2 -1.9 (41) -1.3 (55) 2.2 (86) 2.1 (88) 2.3 (69) 4.9 (32) 6.7 04/01/1989

U.S. Fixed Income Benchmark -2.0 (47) -1.7 (66) 2.0 (88) 2.4 (81) 1.9 (79) 3.8 (81) 5.6All Public Plans-US Fixed Income Segment Median -2.1 -1.0 4.3 3.2 2.9 4.6

Metropolitan West 459,679,103 6.4 -1.6 (46) -1.1 (52) 2.0 (70) 2.0 (74) 2.4 (58) 5.4 (28) 5.4 (31) 07/01/2001

Barclays Intermediate Aggregate Bond Index -2.0 (56) -1.7 (65) 2.0 (70) 2.4 (65) 1.9 (72) 4.2 (60) 4.6 (56)IM U.S. Fixed Income (SA+CF) Median -1.9 -1.1 3.3 3.0 2.9 4.4 4.8

PIMCO 361,979,160 5.0 -1.9 (52) -0.7 (44) 2.6 (59) 1.9 (77) 2.3 (61) 4.9 (37) 7.6 (12) 01/01/1989

Barclays Intermediate Aggregate Bond Index -2.0 (56) -1.7 (65) 2.0 (70) 2.4 (65) 1.9 (72) 4.2 (60) 6.4 (42)IM U.S. Fixed Income (SA+CF) Median -1.9 -1.1 3.3 3.0 2.9 4.4 6.2

BlackRock Intermediate Aggregate 704,234,073 9.8 -2.1 (57) -1.8 (67) 1.8 (73) 2.4 (66) 1.9 (73) 2.6 (66) 07/01/2011

Barclays Intermediate Aggregate Bond Index -2.0 (56) -1.7 (65) 2.0 (70) 2.4 (65) 1.9 (72) 2.6 (64)IM U.S. Fixed Income (SA+CF) Median -1.9 -1.1 3.3 3.0 2.9 4.4 3.4

Total Emerging Market Debt 316,508,235 4.4 -4.6 (68) -1.4 (66) 10.1 (55) 0.3 (63) 2.0 (61) 1.5 (60) 07/01/2011

Emerging Market Debt Benchmark -5.3 (78) -2.2 (74) 10.1 (55) 0.1 (63) 1.8 (62) 1.1 (61)IM Emerging Markets Debt (SA+CF) Median -3.7 -0.1 10.6 2.8 4.2 6.2 3.6

Wellington 102,213,980 1.4 -2.9 (36) 2.0 (19) 12.8 (22) 5.8 (11) 6.2 (16) 5.7 (12) 07/01/2011

JPM EMBI Global -4.2 (64) -0.6 (59) 10.2 (55) 5.6 (13) 5.4 (28) 5.5 (16)IM Emerging Markets Debt (SA+CF) Median -3.7 -0.1 10.6 2.8 4.2 6.2 3.6

Stone Harbor 112,632,736 1.6 -4.8 (71) -1.8 (69) 11.1 (40) -0.1 (64) 0.9 (66) 0.1 (65) 07/01/2011

Performance Benchmark -5.1 (76) -1.9 (70) 10.2 (55) 1.0 (58) 2.3 (59) 1.6 (60)IM Emerging Markets Debt (SA+CF) Median -3.7 -0.1 10.6 2.8 4.2 6.2 3.6

Investec 101,661,520 1.4 -6.0 (90) -4.3 (97) 6.4 (93) -5.3 (98) 03/01/2014

JPM GBI-EM Global Diversified -6.1 (92) -3.6 (87) 9.9 (58) -4.0 (86)IM Emerging Markets Debt (SA+CF) Median -3.7 -0.1 10.6 2.8 4.2 6.2 2.7



Private Real Estate 672,031,412 9.3 1.4 4.4 13.5 12.4 12.1 4.3 8.6 10/01/1990

NCREIF ODCE Index + 50 bps 2.0 4.0 9.6 12.0 11.9 5.6 6.9

35



Allocation

MarketValue ($)

%

Performance(%)

1Quarter

FYTD1

Year3

Years5

Years10

YearsSince

InceptionInception

Date



Total Private Equity 882,109,220 12.3 6.1 9.6 14.5 15.0 16.2 15.8 10/01/2011


GCM - PE 418,648,756 5.8 4.6 8.6 16.4 15.6 17.2 16.9 10/01/2011


Stepstone - Private Equity 463,460,464 6.4 7.5 10.4 12.4 14.4 15.2 14.6 10/01/2011


Total Infrastructure 120,654,085 1.7 1.6 1.5 -7.5 5.5 01/01/2015


GCM Infrastructure 69,636,100 1.0 3.0 5.0 3.0 15.4 01/01/2015


Stepstone Infrastructure 51,017,985 0.7 -0.6 -3.4 -21.5 -7.6 01/01/2015




Torchlight Debt Opportunity Fund IV 52,768,876 0.7 4.8 7.7 10.0 8.5 02/01/2014


Grosvenor Credit Opportunities 133,246,182 1.9 4.9 9.7 12.5 4.2 06/01/2014

50%/50% Credit Suisse HY and Distressed 3.1 7.4 12.0 1.4

Mesa West 12,207,187 0.2 2.8 5.5 11.0 10.9 8.6 12/01/2013

NCREIF ODCE Index (Net) 1.9 3.7 7.8 11.0 11.8

Torchlight Debt Opportunity Fund V 5,429,856 0.1 3.4 13.4 15.2 -156.6 06/01/2015


Davidson Kempner 18,225,395 0.3 -1.8 -4.0 -12.5 06/01/2016

Opportunity Benchmark 0.5 5.0 4.7

Total Cash 211,669,594 2.9 0.0 0.2 0.3 0.2 0.2 1.6 2.4 10/01/1999


SDCERS Cash 182,088,132 2.5 0.0 0.2 0.2 0.2 0.2 1.8 2.5 10/01/1999


Total Overlay 46,181,522 0.6 -0.1 0.1 0.2 0.2 0.3 0.5 01/01/2009

AHIC U.S. T-Bill 0.0 0.1 0.1 0.0 0.0 0.0

The Clifton Group - Overlay 46,181,522 0.6 -0.1 0.1 0.2 0.1 0.3 0.5 01/01/2009

AHIC U.S. T-Bill 0.0 0.1 0.1 0.0 0.0 0.0

*Real Estate, Private Equity and Infrastructure returns and market values are shown on a one-quarter lag. The market values have been adjusted for currentquarter cash flows. Prior to 3Q2014, the publicly-traded portion of the real estate portfolio (REITs) are reported in real time.*The returns shown for the Total Overlay represent the impact of the Clifton Overlay service on the Total Fund return.*The Torchlight IV, Mesa West, and Torchlight V investments are early in their investment periods and therefore the time weighted returns above are less

meaningful.

36

Performance(%)

2015 2014 2013 2012 2011 2010 2009 2008 2007

Total Fund 1.4 (12) 5.1 (80) 17.2 (46) 13.9 (15) -0.4 (57) 15.9 (7) 21.7 (30) -27.6 (84) 8.3 (35)

Total Fund Policy Benchmark 1.5 (11) 6.0 (62) 15.7 (65) 13.2 (30) 0.4 (39) 14.1 (20) 20.7 (37) -23.6 (50) 7.7 (51)All Public Plans-Total Fund Median -0.2 6.4 16.8 12.3 -0.1 12.4 19.2 -23.7 7.8

Total U.S. Equity 0.1 (46) 9.8 (82) 35.7 (11) 16.1 (57) -1.8 (88) 21.0 (6) 34.4 (6) -39.4 (64) 6.2 (23)

U.S. Equity Benchmark 0.4 (34) 12.5 (20) 33.5 (50) 16.4 (47) 1.0 (38) 19.5 (28) 30.3 (32) -36.0 (23) 4.6 (44)All Public Plans-US Equity Segment Median -0.1 11.2 33.4 16.3 0.6 17.8 27.9 -37.6 4.4

BlackRock S&P 500 Index Fund 1.4 (39) 13.7 (27) 32.4 (56) 16.0 (38)

S&P 500 Index 1.4 (39) 13.7 (27) 32.4 (55) 16.0 (37)IM U.S. Large Cap Equity (SA+CF) Median 0.4 12.3 32.8 15.2 0.6 14.4 26.9 -37.0 6.4

BlackRock Russell 1000 Growth 5.6 (7) 13.1 (44) 33.4 (38) 15.3 (48)

Russell 1000 Growth Index 5.7 (7) 13.1 (45) 33.5 (38) 15.3 (48)IM U.S. Large Cap Core Equity (SA+CF) Median 0.7 12.8 32.2 15.1 1.5 14.2 25.8 -36.3 6.5

Dodge & Cox Large Cap Value -3.9 (64) 10.3 (70) 40.1 (12) 21.9 (3) -4.3 (79) 13.9 (51) 31.3 (23) -41.5 (89) 0.9 (67)

Russell 1000 Value Index -3.8 (62) 13.5 (25) 32.5 (57) 17.5 (25) 0.4 (46) 15.5 (34) 19.7 (79) -36.8 (60) -0.2 (73)IM U.S. Large Cap Value Equity (SA+CF) Median -2.9 11.6 33.6 15.0 0.0 14.0 24.5 -35.8 3.2

BlackRock Russell 2000 Growth -1.1 (91) 5.9 (93) 43.7 (5)

Russell 2000 Growth Index -1.4 (92) 5.6 (94) 43.3 (6)IM U.S. Large Cap Growth Equity (SA+CF) Median 4.4 11.3 33.7 14.5 -0.5 15.3 33.3 -38.9 12.6

DFA Small Cap Value -6.5 (66) 4.3 (52) 42.3 (18) 21.9 (14) -7.3 (75) 34.1 (9) 36.7 (38) -34.7 (58) -9.7 (80)

Russell 2000 Value Index -7.5 (72) 4.2 (55) 34.5 (72) 18.1 (38) -5.5 (62) 24.5 (61) 20.6 (86) -28.9 (24) -9.8 (80)IM U.S. Small Cap Value Equity (SA+CF) Median -5.3 4.7 36.7 16.3 -4.1 26.1 32.5 -33.5 -3.1

Fisher Small Cap Value -4.0 (37) 7.7 (17) 38.9 (36) 15.5 (57) -4.1 (51) 30.7 (21) 36.8 (38)

Russell 2000 Value Index -7.5 (72) 4.2 (55) 34.5 (72) 18.1 (38) -5.5 (62) 24.5 (61) 20.6 (86)IM U.S. Small Cap Value Equity (SA+CF) Median -5.3 4.7 36.7 16.3 -4.1 26.1 32.5 -33.5 -3.1

Allianz Convertibles -1.6 (55) 7.3 (36) 25.7 (13) 11.9 (43) -2.8 (22) 21.9 (1) 39.2 (47) -27.8 15.7

Convertibles Benchmark -3.2 (64) 9.4 (11) 24.9 (20) 15.0 (14) -5.2 (55) 16.8 (55) 49.1 (11) -35.7 4.5IM Convertible Bonds (MF) Median -1.4 6.2 20.9 10.9 -5.0 17.9 37.7

Allianz Strucutred Alpha

S&P 500 Index

Total Non-U.S. Equity -3.8 (69) -4.0 (67) 17.0 (72) 17.4 (74) -13.8 (69) 13.7 (33) 26.9 (100) -44.3 (33) 12.2 (100)

Non-U.S. Equity Benchmark -5.2 (85) -3.7 (64) 15.8 (79) 17.0 (81) -14.0 (74) 13.3 (37) 42.7 (1) -45.7 (64) 15.1 (56)All Public Plans-Intl. Equity Segment Median -3.0 -3.5 18.1 18.4 -13.1 11.8 35.8 -45.3 15.7

BlackRock MSCI ACW ex-U.S. -4.5 (61) -3.8 (55) 16.2 (59) 17.1 (65)

MSCI AC World ex USA IMI (Net) -4.6 (61) -3.9 (56) 15.8 (60) 17.0 (65)IM International Equity (SA+CF) Median -2.2 -3.4 19.2 18.9 -13.9 14.3 38.7 -45.2 13.9

Brandes International Value 3.6 (22) -3.9 (56) 31.6 (10) 11.8 (91) -10.8 (25) 6.1 (87) 23.7 (87) -37.5 (17) 8.9 (71)

Performance Benchmark -0.8 (44) -4.9 (66) 22.8 (37) 17.3 (64) -12.1 (37) 11.2 (64) 41.4 (45) -45.5 (52) 16.7 (42)IM International Equity (SA+CF) Median -2.2 -3.4 19.2 18.9 -13.9 14.3 38.7 -45.2 13.9

GMO International Small Cap 6.2 (66) -10.1 (94) 28.2 (61) 22.6 (42) -15.2 (57) 24.8 (33) 44.6 (50) -44.7 (25) 7.8 (54)

Non-U.S. Small Cap Benchmark 5.9 (66) -3.4 (38) 26.1 (75) 18.6 (87) -14.5 (50) 22.0 (59) 45.1 (50) -47.7 (51) 7.3 (58)IM International Small Cap Equity (SA+CF) Median 9.4 -4.3 29.9 22.3 -14.5 22.6 44.4 -47.7 8.5

Copper Rock International Small Cap

Non-U.S. Small Cap BenchmarkIM International Small Cap Equity (SA+CF) Median 9.4 -4.3 29.9 22.3 -14.5 22.6 44.4 -47.7 8.5

Calendar Year Performance


37



Performance(%)

2015 2014 2013 2012 2011 2010 2009 2008 2007

Aberdeen -13.8 (52) -1.9 (59) -6.7 (92) 25.4 (12) -11.1 (8) 28.5 (10)

MSCI Emerging Markets Index (Net) -14.9 (59) -2.2 (63) -2.6 (69) 18.2 (65) -18.4 (47) 18.9 (61)IM Emerging Markets Equity (SA+CF) Median -13.7 -1.2 -0.2 19.3 -19.1 20.7 78.6 -54.6 38.9

Neuberger Berman -11.3 (32)

MSCI Emerging Markets Index (Net) -14.9 (59)IM Emerging Markets Equity (SA+CF) Median -13.7 -1.2 -0.2 19.3 -19.1 20.7 78.6 -54.6 38.9

Total Global Equity -2.4 (66) 1.1 (73) 20.3 (79)

MSCI AC World Index (Net) -2.4 (66) 4.2 (43) 22.8 (70)IM Global Equity (SA+CF) Median -0.6 3.6 26.6 15.9 -7.0 13.2 32.8 -41.3 11.3

GMO Global Equity Allocation -5.8 (83) -0.9 (84) 21.0 (76)


Walter Scott Global Equity 1.1 (36) 2.8 (58) 19.7 (81)


Total U.S. Fixed Income 0.8 (20) 3.3 (92) -1.6 (50) 7.0 (57) 6.5 (82) 10.4 (18) 18.9 (20) -6.1 (62) 9.5 (8)

U.S. Fixed Income Benchmark 1.2 (7) 4.1 (85) -1.8 (64) 4.2 (96) 7.8 (48) 6.5 (88) 8.6 (66) -1.2 (23) 6.7 (48)All Public Plans-US Fixed Income Segment Median 0.1 5.8 -1.6 7.3 7.7 8.3 12.1 -4.7 6.2

Metropolitan West 0.7 (37) 3.3 (60) -0.4 (49) 6.9 (47) 8.1 (23) 13.4 (15) 23.1 (23) -7.2 (74) 7.4 (16)

Barclays Intermediate Aggregate Bond Index 1.2 (20) 4.1 (51) -1.8 (76) 4.2 (72) 7.8 (26) 6.5 (60) 5.9 (75) 5.2 (22) 7.0 (25)IM U.S. Fixed Income (SA+CF) Median 0.4 4.1 -0.5 6.5 6.1 7.3 10.3 0.9 5.9

PIMCO 0.2 (56) 2.8 (66) -2.2 (80) 8.4 (38) 4.8 (65) 8.4 (41) 12.3 (42) 3.5 (37) 9.4 (6)

Barclays Intermediate Aggregate Bond Index 1.2 (20) 4.1 (51) -1.8 (76) 4.2 (72) 7.8 (26) 6.5 (60) 5.9 (75) 5.2 (22) 7.0 (25)IM U.S. Fixed Income (SA+CF) Median 0.4 4.1 -0.5 6.5 6.1 7.3 10.3 0.9 5.9

BlackRock Intermediate Aggregate 1.1 (24) 4.3 (49) -2.0 (79) 4.3 (71)

Barclays Intermediate Aggregate Bond Index 1.2 (20) 4.1 (51) -1.8 (76) 4.2 (72)IM U.S. Fixed Income (SA+CF) Median 0.4 4.1 -0.5 6.5 6.1 7.3 10.3 0.9 5.9

Total Emerging Market Debt -8.6 (69) 0.2 (57) -7.3 (63) 18.0 (54)

Emerging Market Debt Benchmark -8.7 (69) -0.3 (59) -7.1 (62) 17.2 (64)IM Emerging Markets Debt (SA+CF) Median -3.6 0.6 -6.5 18.2 2.5 14.4 31.7 -15.5 6.9

Wellington -1.0 (30) 6.1 (11) -5.1 (36) 19.9 (24)

JPM EMBI Global 1.2 (8) 5.5 (17) -6.6 (52) 18.5 (44)IM Emerging Markets Debt (SA+CF) Median -3.6 0.6 -6.5 18.2 2.5 14.4 31.7 -15.5 6.9

Stone Harbor -8.1 (67) -2.3 (67) -9.6 (82) 16.0 (79)

Performance Benchmark -7.1 (63) 0.7 (50) -7.1 (62) 17.2 (64)IM Emerging Markets Debt (SA+CF) Median -3.6 0.6 -6.5 18.2 2.5 14.4 31.7 -15.5 6.9

Investec -15.4 (85)

JPM GBI-EM Global Diversified -14.9 (81)IM Emerging Markets Debt (SA+CF) Median -3.6 0.6 -6.5 18.2 2.5 14.4 31.7 -15.5 6.9

Total Real Estate 11.0 10.4 10.9 13.4 8.9 20.7 -13.3 -23.3 1.5

Real Estate Benchmark 13.4 11.5 11.8 12.7 6.5 15.7 -3.1 -17.9 10.4

Private Real Estate 12.5 11.3 11.9 11.5 11.5 21.4 -28.7 -19.1 10.1

NCREIF ODCE Index + 50 bps 14.4 11.9 12.5 11.0 17.8 6.5 -35.4 2.8 17.7

38



Performance(%)

2015 2014 2013 2012 2011 2010 2009 2008 2007

Total Private Equity/Infrastructure 14.4

Private Equity/Infrastructure Benchmark 10.0

Total Private Equity 13.2 17.5 22.0 14.2

Private Equity Benchmark 10.0 10.0 10.0 10.0

GCM - PE 11.4 19.0 27.5 12.2


Stepstone - Private Equity 14.7 16.2 16.9 16.0


Total Infrastructure 20.3

Infrastructure Benchmark 10.0

GCM Infrastructure 29.2


Stepstone Infrastructure 8.7


Total Opportunity Fund 4.7

Opportunity Benchmark -1.3

Torchlight Debt Opportunity Fund IV 11.4


Grosvenor Credit Opportunities -0.9

50%/50% Credit Suisse HY and Distressed -5.1

Mesa West 11.8 10.0

NCREIF ODCE Index (Net) 14.0 11.5

Torchlight Debt Opportunity Fund V

NCREIF ODCE Index (Net)

Davidson Kempner

Opportunity Benchmark

Total Cash 0.3 0.0 0.1 0.3 0.7 1.6 4.5 3.6 5.3

iMoneyNet - All Taxable Money Funds Index 0.3 0.2 0.2 0.3 0.3 0.4 0.2 2.0 4.7

SDCERS Cash 0.3 0.0 0.1 0.3 0.7 1.6 5.9 3.6 5.3

iMoneyNet - All Taxable Money Funds Index 0.3 0.2 0.2 0.3 0.3 0.4 0.2 2.0 4.7

Temporary Private Market Cash

Total Overlay -0.1 0.3 0.9 0.4 -0.1 1.3 1.2

AHIC U.S. T-Bill 0.0 0.0 0.0 0.0 0.0 0.1 0.1

The Clifton Group - Overlay -0.1 0.3 0.9 0.4 -0.1 1.3 1.2

AHIC U.S. T-Bill 0.0 0.0 0.0 0.0 0.0 0.1 0.1

39


Writeup

40

Total U.S. Equity

41

Return Summary


Current Allocation

Total U.S. Equity U.S. Equity Benchmark

0.0

6.0

12.0

18.0

24.0

Re

turn

1Quarter

Fiscal YTD

1Year

3Years

5Years

10Years

Inception1/1/89

4.1

8.8

12.6

8.4

14.6

7.6

10.1

5.0

11.0

12.9

7.5

14.4

7.2

10.6

December 31, 2016 : $1,688M

Fisher Small Cap Value:3.5%

BlackRock S&P 500 Index Fund:30.0%

DFA Small Cap Value:3.8%

Allianz Strucutred Alpha:12.7%

Allianz Convertibles:11.8%

Dodge & Cox Large Cap Value:15.2%

BlackRock Russell 2000 Growth:7.4% BlackRock Russell 1000 Growth:15.6%

Total U.S. Equity Benchmark

0.93

0.96

0.99

1.02

1.05

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

0.97


0.0%

2.0%

4.0%

-2.0 %

-4.0 %

-6.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

Total U.S. Equity Portfolio Overview

As of December 31, 2016Total U.S. Equity

42

Style Map(36 Months)

Dodge & Cox Large Cap Value Total U.S. Equity Allianz Convertibles DFA Small Cap Value

Fisher Small Cap Value Wall Street Small Cap Growth U.S. Equity Benchmark

Ca

pit

aliza

tio

n

Manager Style

Russell 1000 Value Index

Russell 2000 Value Index Russell 2000 Growth Index

Russell 1000 Growth Index

U.S. Equity Benchmark

Fisher Small Cap Value

DFA Small Cap Value

Allianz Convertibles

Total U.S. EquityDodge & Cox Large Cap Value

Total U.S. Equity

Style Analysis


43

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

Total U.S. Equity 5.0 (22) 12.9 (44) 11.0 (10) 12.9 (44) 7.5 (61) 14.4 (41) 7.2 (22) 0.1 (46) 9.8 (82) 35.7 (11)¢

U.S. Equity Benchmark 4.1 (51) 12.6 (50) 8.8 (49) 12.6 (50) 8.4 (32) 14.6 (29) 7.6 (13) 0.4 (34) 12.5 (20) 33.5 (50)�

5th Percentile 6.3 15.9 12.0 15.9 9.3 15.9 8.1 2.1 13.4 36.6

1st Quartile 4.8 13.9 9.8 13.9 8.5 14.6 7.1 0.8 12.0 34.9

Median 4.1 12.6 8.7 12.6 7.9 14.1 6.9 -0.1 11.2 33.4

3rd Quartile 3.6 11.4 7.8 11.4 6.9 13.5 6.3 -1.5 10.1 32.0

95th Percentile 2.0 8.6 5.4 8.6 5.1 11.4 4.1 -4.2 6.8 25.2

Population 107 101 106 101 94 80 39 92 50 48

Total U.S. Equity



All Public Plans-US Equity Segment

Parentheses contain percentile rankings.

44






-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

Re

turn

(%)

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


0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

32.0

12/93 3/96 6/98 9/00 12/02 3/05 6/07 9/09 12/11 3/14 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Total U.S. Equity -0.18 1.40 -0.13 0.98 1.41 -0.70 1.04 14.35 9.90 0.99

U.S. Equity Benchmark 0.00 0.00 N/A 1.00 1.50 0.00 1.00 14.59 9.46 1.00


Total U.S. Equity Risk Profile

As of December 31, 2016Total U.S. Equity

45

1 Quarter

0 20 40 60 80 100 120 140-20-40-60


U.S. Equity Manager Cash Overlay



DFA Small Cap Value

BlackRock Russell 2000 Growth Index Fund

Dodge & Cox Large Cap Value


BlackRock S&P 500 Index Fund

Benchmark Effect

Cash Flow Effect

Total Excess Return

12

3

-12

-15

5

1

65

0

0

30

-2

87

1 Year

0 20 40 60 80 100 120-20-40-60-80-100


U.S. Equity Manager Cash Overlay



DFA Small Cap Value





Benchmark Effect

Cash Flow Effect

Total Excess Return

13

10

-54

-41

-11

4

66

1

1

65

-28

25

Total U.S. Equity

Asset Class Attribution


Note: The Attribution Chart shown above includes the impact of the cash held in the U.S. Equity managers' accounts that was overlaid by the CliftonGroup.

46

Return Summary

Quarterly Excess Performance Ratio of Cumulative Wealth - Since Inception

Account Information


S&P 500 Index

0.0

6.0

12.0

18.0

24.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

5Years

Inception3/1/11

3.8

12.0

7.8

12.0

8.9

14.7

11.7

3.8

12.0

7.8

12.0

8.9

14.7

11.7

Account Name: BlackRock S&P 500 Index Fund

Inception Date: 03/01/2011

Account Structure: Commingled Fund

Asset Class: US Equity

Benchmark: S&P 500 Index

Peer Group: IM U.S. Large Cap Equity (SA+CF)


0.0%

0.1%

-0.1 %

-0.2 %

6/11 3/12 12/12 9/13 6/14 3/15 12/15 12/16 BlackRock S&P 500 Index Fund

Benchmark

0.99

1.00

1.01

2/11 11/11 8/12 5/13 2/14 11/14 8/15 5/16 12/16

1.00

BlackRock S&P 500 Index Fund Performance Summary

As of December 31, 2016BlackRock S&P 500 Index Fund

47

Return Summary


Account Information

BlackRock Russell 1000 Growth


0.0

6.0

12.0

18.0

24.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

5Years

Inception3/1/11

1.0

7.1

5.6

7.1

8.6

14.5

11.7

1.0

7.1

5.7

7.1

8.6

14.5

11.7

Account Name: BlackRock Russell 1000 Growth




Benchmark: Russell 1000 Growth Index

Peer Group: IM U.S. Large Cap Growth Equity (SA+CF)


0.0%

0.1%

-0.1 %

-0.2 %

3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 BlackRock Russell 1000 Growth

Benchmark

0.99

1.00

1.01

2/11 11/11 8/12 5/13 2/14 11/14 8/15 5/16 12/16

1.00

BlackRock Russell 1000 Growth Performance Summary

As of December 31, 2016BlackRock Russell 1000 Growth

48

Return Summary


Account Information



0.0

8.0

16.0

24.0

32.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception5/1/03

6.7

10.4

17.3

8.6

14.8

5.7

9.210.8

20.421.5

8.8

17.1

6.4

10.3

Account Name: Dodge & Cox Large Cap Value


Account Structure: Separate Account


Benchmark: Russell 1000 Value Index

Peer Group: IM U.S. Large Cap Value Equity (SA+CF)


0.0%

5.0%

10.0%

-5.0 %

-10.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16 Dodge & Cox Large Cap Value

Benchmark

0.84

0.91

0.98

1.05

1.12

1.19

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

1.07

Dodge & Cox Large Cap Value Performance Summary

As of December 31, 2016Dodge & Cox Large Cap Value

49

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

Dodge & Cox Large Cap Value 10.8 (5) 21.5 (6) 20.4 (3) 21.5 (6) 8.8 (21) 17.1 (3) 6.4 (44) -3.9 (64) 10.3 (70) 40.1 (12)¢

Russell 1000 Value Index 6.7 (45) 17.3 (21) 10.4 (52) 17.3 (21) 8.6 (25) 14.8 (26) 5.7 (68) -3.8 (62) 13.5 (25) 32.5 (57)�

5th Percentile 10.8 21.8 18.6 21.8 10.3 16.6 8.4 3.7 16.1 42.9

1st Quartile 8.0 16.6 13.5 16.6 8.6 14.8 7.0 -0.5 13.4 37.0

Median 6.4 13.9 10.5 13.9 7.4 13.8 6.2 -2.9 11.6 33.6

3rd Quartile 4.3 10.5 7.5 10.5 6.2 12.5 5.5 -5.4 9.7 30.6

95th Percentile 1.9 6.0 3.7 6.0 3.3 10.2 3.7 -10.4 4.6 24.2

Population 333 331 333 331 326 311 254 368 395 399


Peer Group Analysis


IM U.S. Large Cap Value Equity (SA+CF)


50







-12.0

-6.0

0.0

6.0

12.0

18.0

24.0

30.0

Re

turn

(%)

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



0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Dodge & Cox Large Cap Value 2.16 3.89 0.55 0.90 1.36 0.86 1.09 17.07 12.16 0.95

Russell 1000 Value Index 0.00 0.00 N/A 1.00 1.35 0.00 1.00 14.80 10.61 1.00

Citigroup 3 Month T-Bill -14.34 10.60 -1.35 0.01 N/A 0.09 0.00 0.09 0.03 0.09

Dodge & Cox Large Cap Value Risk Profile

As of December 31, 2016Dodge & Cox Large Cap Value

51

Return Summary


Account Information

BlackRock Russell 2000 Growth


0.0

6.0

12.0

18.0

24.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

Inception11/1/12

3.6

11.3

13.1

11.3

5.1

13.9

3.7

11.8

13.4

11.8

5.4

16.4

Account Name: BlackRock Russell 2000 Growth


Account Structure: Mutual Fund


Benchmark: Russell 2000 Growth Index

Peer Group: IM U.S. Small Cap Growth Equity (SA+CF)


0.0%

0.1%

0.2%

0.3%

0.4%

3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 BlackRock Russell 2000 Growth

Benchmark

0.95

1.00

1.05

1.10

1.15

10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 12/16

1.09

BlackRock Russell 2000 Growth Performance Summary

As of December 31, 2016BlackRock Russell 2000 Growth

52

Return Summary


Account Information

DFA Small Cap Value Russell 2000 Value Index

0.0

15.0

30.0

45.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception10/1/95

14.1

24.2

31.7

8.3

15.1

6.3

10.3

15.3

24.6

28.6

7.8

16.8

8.1

13.1

Account Name: DFA Small Cap Value





Peer Group: IM U.S. Small Cap Value Equity (SA+CF)


0.0%

8.0%

16.0%

-8.0 %

-16.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

DFA Small Cap Value Benchmark

0.60

0.80

1.00

1.20

1.40

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

1.19

DFA Small Cap Value Performance Summary

As of December 31, 2016DFA Small Cap Value

53

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

80.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

DFA Small Cap Value 15.3 (11) 28.6 (28) 24.6 (12) 28.6 (28) 7.8 (48) 16.8 (17) 8.1 (35) -6.5 (66) 4.3 (52) 42.3 (18)¢

Russell 2000 Value Index 14.1 (24) 31.7 (10) 24.2 (15) 31.7 (10) 8.3 (37) 15.1 (46) 6.3 (81) -7.5 (72) 4.2 (55) 34.5 (71)�

5th Percentile 16.8 35.1 27.4 35.1 11.1 18.2 10.3 0.4 10.1 47.9

1st Quartile 13.9 29.0 22.7 29.0 9.2 15.9 8.5 -2.8 6.9 41.0

Median 11.9 24.9 20.3 24.9 7.7 14.8 7.5 -5.3 4.7 36.7

3rd Quartile 9.3 20.3 16.8 20.3 5.6 13.3 6.4 -8.0 1.4 33.4

95th Percentile 6.0 15.2 11.9 15.2 -0.2 10.3 4.9 -16.0 -7.2 26.3

Population 223 222 223 222 216 205 170 238 249 252

DFA Small Cap Value

Peer Group Analysis


IM U.S. Small Cap Value Equity (SA+CF)


54






-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

Re

turn

(%)



0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

9/00 3/02 9/03 3/05 9/06 3/08 9/09 3/11 9/12 3/14 9/15 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

DFA Small Cap Value 1.61 2.67 0.60 0.97 1.12 1.19 1.03 16.82 14.87 0.98



DFA Small Cap Value Risk Profile

As of December 31, 2016DFA Small Cap Value

55

Return Summary


Account Information

Fisher Small Cap Value Russell 2000 Value Index

0.0

15.0

30.0

45.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

5Years

Inception10/1/08

14.1

31.7

24.2

31.7

8.3

15.1

9.710.4

20.5

16.9

20.5

7.6

14.8

11.7

Account Name: Fisher Small Cap Value





Peer Group: IM U.S. Small Cap Value Equity (SA+CF)


0.0%

5.0%

10.0%

15.0%

-5.0 %

-10.0 %

12/08 9/09 6/10 3/11 12/11 9/12 6/13 3/14 12/14 9/15 12/16

Fisher Small Cap Value Benchmark

0.80

1.00

1.20

1.40

9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 12/16

1.16

Fisher Small Cap Value Performance Summary

As of December 31, 2016Fisher Small Cap Value

56

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

80.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

2015 2014 2013

Fisher Small Cap Value 10.4 (66) 20.5 (73) 16.9 (74) 20.5 (73) 7.6 (52) 14.8 (50) -4.0 (37) 7.7 (17) 38.9 (36)¢

Russell 2000 Value Index 14.1 (24) 31.7 (10) 24.2 (15) 31.7 (10) 8.3 (37) 15.1 (46) -7.5 (72) 4.2 (55) 34.5 (71)�

5th Percentile 16.8 35.1 27.4 35.1 11.1 18.2 0.4 10.1 47.9

1st Quartile 13.9 29.0 22.7 29.0 9.2 15.9 -2.8 6.9 41.0

Median 11.9 24.9 20.3 24.9 7.7 14.8 -5.3 4.7 36.7

3rd Quartile 9.3 20.3 16.8 20.3 5.6 13.3 -8.0 1.4 33.4

95th Percentile 6.0 15.2 11.9 15.2 -0.2 10.3 -16.0 -7.2 26.3

Population 223 222 223 222 216 205 238 249 252


Peer Group Analysis


IM U.S. Small Cap Value Equity (SA+CF)


57






-8.0

-4.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

Re

turn

(%)



0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

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

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Fisher Small Cap Value -0.31 5.27 -0.06 0.86 1.10 1.58 0.88 14.84 13.41 0.93



Fisher Small Cap Value Risk Profile

As of December 31, 2016Fisher Small Cap Value

58

Return Summary


Account Information

Allianz Convertibles Convertibles Benchmark

0.0

4.0

8.0

12.0

16.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception10/1/95

2.1

8.3

10.4

5.3

10.9

6.4

7.5

1.1

7.4

6.1

3.9

9.5

8.0

10.0

Account Name: Allianz Convertibles




Benchmark: Convertibles Benchmark

Peer Group: IM U.S. Convertible Bonds (SA+CF)


0.0%

6.0%

12.0%

-6.0 %

-12.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

Allianz Convertibles Benchmark

0.80

1.00

1.20

1.40

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

1.16

Allianz Convertibles Performance Summary

As of December 31, 2016Allianz Convertibles

59

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

36.0

44.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

2015 2014 2013

Allianz Convertibles 1.1 (29) 6.1 (53) 7.4 (25) 6.1 (53) 3.9 (34) 9.5 (24) -1.6 (55) 7.3 (36) 25.7 (13)¢

Convertibles Benchmark 2.1 (10) 10.4 (21) 8.3 (19) 10.4 (21) 5.3 (15) 10.9 (1) -3.2 (64) 9.4 (11) 24.9 (20)�

5th Percentile 2.5 12.7 10.6 12.7 5.8 10.4 1.9 12.6 26.3

1st Quartile 1.5 9.8 7.4 9.8 4.8 9.3 -0.2 7.7 24.2

Median 0.7 6.2 5.8 6.2 3.1 8.7 -1.4 6.2 20.9

3rd Quartile 0.3 5.0 4.0 5.0 2.4 6.8 -5.0 4.4 18.7

95th Percentile -1.4 1.5 2.7 1.5 1.0 5.1 -7.9 1.7 14.4

Population 21 21 21 21 18 17 21 19 19


Peer Group Analysis


IM Convertible Bonds (MF)


60






-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

15.0

Re

turn

(%)



0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

9/00 3/02 9/03 3/05 9/06 3/08 9/09 3/11 9/12 3/14 9/15 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Allianz Convertibles -1.25 1.96 -0.64 0.95 1.05 -1.64 1.04 9.51 9.00 0.98

Convertibles Benchmark 0.00 0.00 N/A 1.00 1.26 0.00 1.00 10.92 8.47 1.00


Allianz Convertibles Risk Profile

As of December 31, 2016Allianz Convertibles

61


Writeup

62

Total Non-U.S. Equity

63

Return Summary


Current Allocation

Total Non-U.S. Equity Non-U.S. Equity Benchmark

0.0

5.0

10.0

15.0

-5.0

-10.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception4/1/95

-1.7

5.34.8

-1.5

5.3

1.2

5.2

-2.0

4.7 4.5

-1.2

5.8

0.3

7.2

December 31, 2016 : $1,160M

Copper Rock International Small Cap:4.2%Aberdeen:10.6%

Neuberger Berman:5.6%

Brandes International Value:14.2%

GMO International Small Cap:5.2%BlackRock MSCI ACW ex-U.S.:60.2%

Total Non-U.S. Equity Benchmark

0.84

0.90

0.96

1.02

1.08

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

0.91


0.0%

5.0%

10.0%

-5.0 %

-10.0 %

-15.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

Total Non-U.S. Equity Portfolio Overview

As of December 31, 2016Total Non-U.S. Equity

64

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

36.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

Total Non-U.S. Equity -2.0 (44) 4.5 (31) 4.7 (41) 4.5 (31) -1.2 (51) 5.8 (61) 0.3 (95) -3.8 (69) -4.0 (67) 17.0 (72)¢

Non-U.S. Equity Benchmark -1.7 (37) 4.8 (25) 5.3 (24) 4.8 (25) -1.5 (64) 5.3 (72) 1.2 (66) -5.2 (85) -3.7 (64) 15.8 (79)�

5th Percentile 0.3 8.1 8.0 8.1 1.1 8.9 2.9 0.7 0.1 24.5

1st Quartile -1.4 4.8 5.2 4.8 -0.6 7.0 2.0 -1.4 -1.9 19.8

Median -2.3 3.4 4.4 3.4 -1.2 6.3 1.3 -3.0 -3.5 18.1

3rd Quartile -3.1 1.8 3.3 1.8 -1.8 5.2 0.9 -4.4 -4.3 16.7

95th Percentile -5.9 -1.3 0.6 -1.3 -2.6 4.2 0.3 -7.1 -5.4 12.1

Population 101 96 101 96 85 72 36 85 47 44




All Public Plans-Intl. Equity Segment


65






-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Re

turn

(%)

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


0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

3/00 12/01 9/03 6/05 3/07 12/08 9/10 6/12 3/14 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Total Non-U.S. Equity 0.42 0.90 0.47 0.99 0.53 0.54 0.98 5.80 11.87 1.00

Non-U.S. Equity Benchmark 0.00 0.00 N/A 1.00 0.48 0.00 1.00 5.33 12.07 1.00


Total Non-U.S. Equity Risk Profile

As of December 31, 2016Total Non-U.S. Equity

66

1 Quarter

0 15 30 45 60 75-15-30-45-60


Non-U.S. Equity Manager Cash Overlay

Neuberger Berman

Aberdeen

GMO International Small Cap

Brandes International Value

BlackRock MSCI ACW ex-U.S. IMI Index Fund

Benchmark Effect

Cash Flow Effect

Total Excess Return

-17

-2

-10

-14

4

37

1

-29

1

-31

1 Year

0 10 20 30 40 50-10-20-30-40-50-60-70


Non-U.S. Equity Manager Cash Overlay

Neuberger Berman

Aberdeen




Benchmark Effect

Cash Flow Effect

Total Excess Return

-29

2

-9

7

-39

20

9

9

-1

-31




Note: The Attribution Chart shown above includes the impact of the cash held in the Non-U.S. Equity managers' accounts that was overlaid by the CliftonGroup.

67


Writeup

68

Return Summary


Account Information

BlackRock MSCI ACW ex-U.S.

MSCI AC World ex USA IMI (Net)

0.0

4.0

8.0

12.0

-4.0

-8.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

5Years

Inception3/1/11

-1.6

4.45.4

4.4

-1.4

5.3

1.3

-1.6

4.65.4

4.6

-1.3

5.5

1.4

Account Name: BlackRock MSCI ACW ex-U.S.



Asset Class: International Equity

Benchmark: MSCI AC World ex USA IMI (Net)

Peer Group: IM International Equity (SA+CF)


0.0%

0.2%

0.4%

-0.2 %

-0.4 %

6/11 3/12 12/12 9/13 6/14 3/15 12/15 12/16 BlackRock MSCI ACW ex-U.S.

Benchmark

0.99

1.00

1.01

1.02

2/11 11/11 8/12 5/13 2/14 11/14 8/15 5/16 12/16

1.01

BlackRock MSCI ACW ex-U.S. Performance Summary

As of December 31, 2016BlackRock MSCI ACW ex-U.S.

69

Return Summary


Account Information

Brandes International Value Performance Benchmark

0.0

5.0

10.0

15.0

-5.0

-10.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception4/1/95

-0.7

5.7

1.0

-1.6

6.5

1.9

5.3

2.1

8.3

2.4

0.6

8.4

1.8

9.4

Account Name: Brandes International Value




Benchmark: Performance Benchmark

Peer Group: IM International Equity (SA+CF)


0.0%

8.0%

16.0%

-8.0 %

-16.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

Brandes International Value Benchmark

0.60

0.80

1.00

1.20

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

0.99

Brandes International Value Performance Summary

As of December 31, 2016Brandes International Value

70

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

Brandes International Value 2.1 (8) 2.4 (54) 8.3 (15) 2.4 (54) 0.6 (26) 8.4 (27) 1.8 (54) 3.6 (22) -3.9 (56) 31.6 (10)¢

Performance Benchmark -0.7 (26) 1.0 (63) 5.7 (34) 1.0 (63) -1.6 (56) 6.5 (47) 1.9 (53) -0.8 (44) -4.9 (66) 22.8 (37)�

5th Percentile 2.8 15.6 11.9 15.6 5.7 13.5 6.0 14.1 8.4 35.9

1st Quartile -0.7 7.8 6.7 7.8 0.6 8.5 3.4 2.7 0.2 25.7

Median -3.1 2.9 3.9 2.9 -1.2 6.3 1.9 -2.2 -3.4 19.2

3rd Quartile -5.3 -0.7 1.0 -0.7 -2.7 4.2 0.9 -9.9 -5.9 4.7

95th Percentile -8.4 -5.6 -2.8 -5.6 -4.8 0.6 -0.3 -17.6 -10.5 -4.8

Population 980 970 977 970 917 810 572 1,113 1,141 1,148


Peer Group Analysis


IM International Equity (SA+CF)


71






-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

15.0

Re

turn

(%)



0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

3/99 12/00 9/02 6/04 3/06 12/07 9/09 6/11 3/13 12/14 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Brandes International Value 1.81 3.81 0.47 0.92 0.65 1.94 0.98 8.43 13.84 0.96

Performance Benchmark 0.00 0.00 N/A 1.00 0.53 0.00 1.00 6.53 13.51 1.00


Brandes International Value Risk Profile

As of December 31, 2016Brandes International Value

72

Return Summary


Account Information


Non-U.S. Small Cap Benchmark

0.0

6.0

12.0

18.0

-6.0

-12.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception7/1/02

-3.1

4.63.8

2.0

9.7

3.0

9.3

-2.4

5.4

0.0-1.6

8.4

3.2

10.0

Account Name: GMO International Small Cap




Benchmark: Non-U.S. Small Cap Benchmark

Peer Group: IM International Small Cap Equity (SA+CF)


0.0%

3.0%

6.0%

-3.0 %

-6.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

GMO International Small Cap Benchmark

0.91

0.98

1.05

1.12

1.19

1.26

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

1.02

GMO International Small Cap Performance Summary

As of December 31, 2016GMO International Small Cap

73

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

GMO International Small Cap -2.4 (31) 0.0 (52) 5.4 (37) 0.0 (52) -1.6 (90) 8.4 (80) 3.2 (62) 6.2 (66) -10.1 (94) 28.2 (61)¢

Non-U.S. Small Cap Benchmark -3.1 (38) 3.8 (29) 4.6 (43) 3.8 (29) 2.0 (42) 9.7 (65) 3.0 (70) 5.9 (66) -3.4 (38) 26.1 (75)�

5th Percentile 1.7 9.7 12.0 9.7 6.0 14.1 6.5 19.8 1.6 39.9

1st Quartile -1.9 5.1 6.8 5.1 3.0 12.2 4.9 12.8 -2.4 34.1

Median -4.0 0.1 4.0 0.1 1.4 10.5 3.8 9.4 -4.3 29.9

3rd Quartile -5.7 -2.2 0.6 -2.2 -0.2 8.9 2.6 4.6 -6.9 25.1

95th Percentile -8.2 -5.6 -1.8 -5.6 -2.6 6.7 -0.2 -0.9 -11.1 20.1

Population 105 102 105 102 91 80 58 112 106 105


Peer Group Analysis


IM International Small Cap Equity (SA+CF)


74







-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

15.0

Re

turn

(%)




0.0

6.0

12.0

18.0

24.0

30.0

36.0

6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

GMO International Small Cap -1.20 3.03 -0.40 0.95 0.69 -0.57 0.94 8.44 12.77 0.97

Non-U.S. Small Cap Benchmark 0.00 0.00 N/A 1.00 0.76 0.00 1.00 9.67 13.27 1.00


GMO International Small Cap Risk Profile

As of December 31, 2016GMO International Small Cap

75

Return Summary


Account Information



0.0

6.0

12.0

-6.0

-12.0

Re

turn

1Quarter

FYTD Inception4/1/16

-3.1

4.63.2

-7.2

-1.1

-3.4

Account Name: Copper Rock International Small Cap




Benchmark: Non-U.S. Small Cap Benchmark

Peer Group: IM International Small Cap Equity (SA+CF)

Monthly Out Performance Monthly Under Performance

-6.0 %

-4.0 %

-2.0 %

0.0%

6/16 9/16 12/16 Copper Rock International Small Cap

Benchmark

0.92

0.96

1.00

1.04

3/16 4/16 5/16 6/16 7/16 8/16 9/16 10/16 11/16 12/16

0.94

Copper Rock International Small Cap Performance Summary

As of December 31, 2016Copper Rock International Small Cap

76

Return Summary


Account Information

Aberdeen

MSCI Emerging Markets Index (Net)

0.0

8.0

16.0

24.0

-8.0

-16.0

Re

turn

1Quarter

FiscalYTD

2016 1Year

3Years

5Years

Inception1/1/10

-4.2

4.5

11.2 11.2

-2.6

1.30.5

-5.4

-0.1

12.3 12.3

-1.7

2.13.5

Account Name: Aberdeen




Benchmark: MSCI Emerging Markets Index (Net)

Peer Group: IM Emerging Markets Equity (SA+CF)


0.0%

4.0%

8.0%

12.0%

-4.0 %

-8.0 %

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

Aberdeen Benchmark

0.80

1.00

1.20

1.40

12/09 9/10 6/11 3/12 12/12 9/13 6/14 3/15 12/15 12/16

1.23

Aberdeen Performance Summary

As of December 31, 2016Aberdeen

77

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

2015 2014 2013

Aberdeen -5.4 (62) 12.3 (27) -0.1 (78) 12.3 (27) -1.7 (36) 2.1 (56) -13.8 (52) -1.9 (59) -6.7 (92)¢

MSCI Emerging Markets Index (Net) -4.2 (42) 11.2 (35) 4.5 (35) 11.2 (35) -2.6 (55) 1.3 (70) -14.9 (59) -2.2 (63) -2.6 (69)�

5th Percentile 0.5 21.6 9.4 21.6 1.8 9.7 -4.8 7.8 20.4

1st Quartile -2.9 12.5 5.6 12.5 -0.9 3.8 -10.3 2.1 4.3

Median -4.6 9.0 3.1 9.0 -2.4 2.3 -13.7 -1.2 -0.2

3rd Quartile -6.7 5.3 0.1 5.3 -3.5 1.0 -16.2 -3.5 -3.5

95th Percentile -9.8 -1.7 -5.0 -1.7 -5.5 -0.8 -19.7 -9.1 -8.2

Population 268 267 267 267 248 191 302 306 296

Aberdeen

Peer Group Analysis


IM Emerging Markets Equity (SA+CF)


78

Return Summary


Account Information

Neuberger Berman

MSCI Emerging Markets Index (Net)

0.0

8.0

16.0

24.0

-8.0

-16.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

Inception3/1/14

-4.2

11.2

4.5

11.2

-1.5

-5.9

9.6

2.3

9.6

-0.7

Account Name: Neuberger Berman


Account Structure: Mutual Fund


Benchmark: MSCI Emerging Markets Index (Net)

Peer Group: IM Emerging Markets Equity (SA+CF)


0.0%

4.0%

8.0%

-4.0 %

-8.0 %

3/14 9/14 3/15 9/15 3/16 9/16 12/16

Neuberger Berman Benchmark

0.90

0.95

1.00

1.05

1.10

2/14 8/14 2/15 8/15 2/16 8/16 12/16

1.02

Neuberger Berman Performance Summary

As of December 31, 2016Neuberger Berman

79

-40.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

Re

turn

1Quarter

2016FiscalYTD

1Year

2015

Neuberger Berman -5.9 (67) 9.6 (47) 2.3 (57) 9.6 (47) -11.3 (32)¢

MSCI Emerging Markets Index (Net) -4.2 (42) 11.2 (35) 4.5 (35) 11.2 (35) -14.9 (59)�

5th Percentile 0.5 21.6 9.4 21.6 -4.8

1st Quartile -2.9 12.5 5.6 12.5 -10.3

Median -4.6 9.0 3.1 9.0 -13.7

3rd Quartile -6.7 5.3 0.1 5.3 -16.2

95th Percentile -9.8 -1.7 -5.0 -1.7 -19.7

Population 268 267 267 267 302

Neuberger Berman

Peer Group Analysis


IM Emerging Markets Equity (SA+CF)


80

Total Global Equity

81

Return Summary


Current Allocation

Total Global Equity MSCI AC World Index (Net)

0.0

5.0

10.0

15.0

20.0

-5.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

Inception6/1/12

1.2

7.9

6.6

7.9

3.1

10.1

-0.6

6.7

3.8

6.7

1.7

8.6

December 31, 2016 : $343M

GMO Global Equity Allocation:49.0%Walter Scott Global Equity:51.0%

Total Global Equity Benchmark

0.92

0.96

1.00

1.04

6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16

0.94


0.0%

2.0%

4.0%

-2.0 %

-4.0 %

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

Total Global Equity Portfolio Overview

As of December 31, 2016Total Global Equity

82

1 Quarter

-260 -240 -220 -200 -180 -160 -140 -120 -100 -80 -60 -40 -20 0

Walter Scott Global Equity

GMO Global Equity Allocation

Benchmark Effect

Cash Flow Effect

Total Excess Return

-122

-57

0

0

-179

1 Year

0 20 40 60-20-40-60-80-100-120-140-160-180



Benchmark Effect

Cash Flow Effect

Total Excess Return

-117

5

0

0

-112

Total Global Equity



83


Writeup

84

Return Summary


Account Information


MSCI AC World Index (Net)

0.0

4.0

8.0

12.0

16.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

Inception6/1/12

1.2

7.9

6.6

7.9

3.1

10.1

0.0

8.0

5.6

8.0

0.3

7.7

Account Name: GMO Global Equity Allocation



Asset Class: Global Equity

Benchmark: MSCI AC World Index (Net)

Peer Group: IM Global Equity (SA+CF)


0.0%

3.0%

6.0%

-3.0 %

-6.0 %

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

GMO Global Equity Allocation Benchmark

0.85

0.90

0.95

1.00

1.05

5/12 11/12 5/13 11/13 5/14 11/14 5/15 11/15 5/16 12/16

0.90

GMO Global Equity Allocation Performance Summary

As of December 31, 2016GMO Global Equity Allocation

85

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

2015 2014 2013

GMO Global Equity Allocation 0.0 (53) 8.0 (35) 5.6 (47) 8.0 (35) 0.3 (87) -5.8 (83) -0.9 (84) 21.0 (76)¢

MSCI AC World Index (Net) 1.2 (40) 7.9 (36) 6.6 (39) 7.9 (36) 3.1 (49) -2.4 (66) 4.2 (43) 22.8 (70)�

5th Percentile 6.0 19.7 13.9 19.7 7.9 9.7 13.2 40.6

1st Quartile 2.6 8.9 8.7 8.9 4.7 2.8 6.5 31.2

Median 0.3 6.2 5.1 6.2 3.1 -0.6 3.6 26.6

3rd Quartile -2.3 2.8 2.2 2.8 1.5 -4.0 0.9 21.1

95th Percentile -5.7 -2.3 -3.3 -2.3 -2.2 -16.0 -7.6 9.3

Population 471 466 470 466 429 523 530 542


Peer Group Analysis


IM Global Equity (SA+CF)


86

Return Summary


Account Information

Walter Scott Global Equity MSCI AC World Index (Net)

0.0

6.0

12.0

18.0

-6.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

Inception6/1/12

1.2

7.9

6.6

7.9

3.1

10.1

-1.2

5.6

2.1

5.6

3.1

9.5

Account Name: Walter Scott Global Equity



Asset Class: Global Equity

Benchmark: MSCI AC World Index (Net)

Peer Group: IM Global Equity (SA+CF)


0.0%

3.0%

6.0%

-3.0 %

-6.0 %

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

Walter Scott Global Equity Benchmark

0.96

1.00

1.04

1.08

5/12 11/12 5/13 11/13 5/14 11/14 5/15 11/15 5/16 12/16

0.98

Walter Scott Global Equity Performance Summary

As of December 31, 2016Walter Scott Global Equity

87

-40.0

-25.0

-10.0

5.0

20.0

35.0

50.0

65.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

2015 2014 2013

Walter Scott Global Equity -1.2 (63) 5.6 (54) 2.1 (76) 5.6 (54) 3.1 (49) 1.1 (36) 2.8 (58) 19.7 (81)¢

MSCI AC World Index (Net) 1.2 (40) 7.9 (36) 6.6 (39) 7.9 (36) 3.1 (49) -2.4 (66) 4.2 (43) 22.8 (70)�

5th Percentile 6.0 19.7 13.9 19.7 7.9 9.7 13.2 40.6

1st Quartile 2.6 8.9 8.7 8.9 4.7 2.8 6.5 31.2

Median 0.3 6.2 5.1 6.2 3.1 -0.6 3.6 26.6

3rd Quartile -2.3 2.8 2.2 2.8 1.5 -4.0 0.9 21.1

95th Percentile -5.7 -2.3 -3.3 -2.3 -2.2 -16.0 -7.6 9.3

Population 471 466 470 466 429 523 530 542


Peer Group Analysis


IM Global Equity (SA+CF)


88

Total U.S. Fixed Income

89

Return Summary


Current Allocation


U.S. Fixed Income Benchmark

0.0

4.0

8.0

12.0

-4.0

-8.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception4/1/89

-2.0 -1.7

2.02.4

1.9

3.8

5.6

-1.9-1.3

2.2 2.1 2.3

4.9

6.7

December 31, 2016 : $1,526M

BlackRock Intermediate Aggregate:46.2%

PIMCO:23.7%

Metropolitan West:30.1%

Total U.S. Fixed Income Benchmark

0.96

1.04

1.12

1.20

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

1.11


0.0%

3.0%

6.0%

9.0%

-3.0 %

-6.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

Total U.S. Fixed Income Portfolio Overview

As of December 31, 2016Total U.S. Fixed Income

90

-10.0

-7.0

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

Total U.S. Fixed Income -1.9 (41) 2.2 (86) -1.3 (55) 2.2 (86) 2.1 (88) 2.3 (69) 4.9 (32) 0.8 (20) 3.3 (92) -1.6 (50)¢

U.S. Fixed Income Benchmark -2.0 (47) 2.0 (88) -1.7 (66) 2.0 (88) 2.4 (81) 1.9 (79) 3.8 (81) 1.2 (7) 4.1 (85) -1.8 (64)�

5th Percentile -0.3 8.2 2.0 8.2 5.4 6.5 6.8 1.4 8.8 2.1

1st Quartile -1.4 6.1 0.1 6.1 4.0 4.0 5.1 0.6 7.0 -0.2

Median -2.1 4.3 -1.0 4.3 3.2 2.9 4.6 0.1 5.8 -1.6

3rd Quartile -3.0 2.8 -2.1 2.8 2.5 2.0 4.1 -0.6 5.0 -2.3

95th Percentile -4.0 0.9 -4.2 0.9 1.3 1.2 3.0 -2.8 2.4 -4.1

Population 101 96 100 96 88 77 39 80 49 49




All Public Plans-US Fixed Income Segment


91





U.S. Fixed Income Benchmark


-1.6

-0.8

0.0

0.8

1.6

2.4

3.2

Re

turn

(%)

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0Risk (Standard Deviation %)

Total U.S. Fixed Income U.S. Fixed Income Benchmark

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

3/94 6/96 9/98 12/00 3/03 6/05 9/07 12/09 3/12 6/14 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Total U.S. Fixed Income 0.38 0.82 0.46 0.90 0.86 0.42 0.98 2.29 2.56 0.95

U.S. Fixed Income Benchmark 0.00 0.00 N/A 1.00 0.74 0.00 1.00 1.91 2.47 1.00


Total U.S. Fixed Income Risk Profile

As of December 31, 2016Total U.S. Fixed Income

92

1 Quarter

0 3 6 9 12 15 18 21 24-3-6-9-12

BlackRock Intermediate Aggregate

PIMCO

Metropolitan West

Benchmark Effect

Cash Flow Effect

Total Excess Return

-3

3

13

0

3

16

1 Year

0 4 8 12 16 20 24 28 32-4-8-12-16-20


PIMCO

Metropolitan West

Benchmark Effect

Cash Flow Effect

Total Excess Return

-8

18

-2

0

9

18




93


Writeup

94

Return Summary


Account Information

Metropolitan West

Barclays Intermediate Aggregate Bond Index

0.0

4.0

8.0

12.0

-4.0

-8.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception7/1/01

-2.0 -1.7

2.02.4

1.9

4.24.6

-1.6-1.1

2.0 2.02.4

5.4 5.4

Account Name: Metropolitan West



Asset Class: US Fixed Income

Benchmark: Barclays Intermediate Aggregate Bond Index

Peer Group: IM U.S. Fixed Income (SA+CF)


0.0%

8.0%

16.0%

-8.0 %

-16.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

Metropolitan West Benchmark

0.60

0.80

1.00

1.20

1.40

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

1.13

Metropolitan West Performance Summary

As of December 31, 2016Metropolitan West

95

-22.0

-16.0

-10.0

-4.0

2.0

8.0

14.0

20.0

26.0

32.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

Metropolitan West -1.6 (46) 2.0 (70) -1.1 (52) 2.0 (70) 2.0 (74) 2.4 (58) 5.4 (28) 0.7 (37) 3.3 (60) -0.4 (49)¢

Barclays Intermediate Aggregate Bond Index -2.0 (56) 2.0 (70) -1.7 (65) 2.0 (70) 2.4 (65) 1.9 (72) 4.2 (60) 1.2 (20) 4.1 (51) -1.8 (76)�

5th Percentile 2.3 14.9 7.3 14.9 7.2 7.8 7.6 2.7 17.3 9.2

1st Quartile 0.1 7.2 1.0 7.2 4.2 4.9 5.6 1.0 6.4 1.5

Median -1.9 3.3 -1.1 3.3 3.0 2.9 4.4 0.4 4.1 -0.5

3rd Quartile -2.8 1.7 -2.2 1.7 1.9 1.8 3.6 -1.2 1.9 -1.8

95th Percentile -6.5 0.2 -4.9 0.2 0.5 0.5 1.9 -4.6 0.3 -7.9

Population 1,343 1,336 1,339 1,336 1,297 1,238 970 1,438 1,505 1,547

Metropolitan West

Peer Group Analysis


IM U.S. Fixed Income (SA+CF)


96




Metropolitan West



-1.6

-0.8

0.0

0.8

1.6

2.4

3.2

4.0

Re

turn

(%)


Metropolitan West


0.0

2.0

4.0

6.0

8.0

10.0

6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 6/15 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

Metropolitan West 0.52 0.82 0.63 0.90 1.19 0.94 0.78 2.45 1.97 0.95

Barclays Intermediate Aggregate Bond Index 0.00 0.00 N/A 1.00 0.77 0.00 1.00 1.91 2.39 1.00


Metropolitan West Risk Profile

As of December 31, 2016Metropolitan West

97

Return Summary


Account Information

PIMCO


0.0

5.0

10.0

15.0

-5.0

-10.0

Re

turn

1Quarter

FiscalYTD

1Year

3Years

5Years

10Years

Inception1/1/89

-2.0 -1.7

2.0 2.41.9

4.2

6.4

-1.9-0.7

2.61.9 2.3

4.9

7.6

Account Name: PIMCO







0.0%

4.0%

8.0%

-4.0 %

-8.0 %

3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 12/16

PIMCO Benchmark

0.95

1.00

1.05

1.10

1.15

12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16

1.07

PIMCO Performance Summary

As of December 31, 2016PIMCO

98

-22.0

-16.0

-10.0

-4.0

2.0

8.0

14.0

20.0

26.0

32.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

10Years

2015 2014 2013

PIMCO -1.9 (52) 2.6 (59) -0.7 (44) 2.6 (59) 1.9 (77) 2.3 (61) 4.9 (37) 0.2 (56) 2.8 (66) -2.2 (80)¢

Barclays Intermediate Aggregate Bond Index -2.0 (56) 2.0 (70) -1.7 (65) 2.0 (70) 2.4 (65) 1.9 (72) 4.2 (60) 1.2 (20) 4.1 (51) -1.8 (76)�

5th Percentile 2.3 14.9 7.3 14.9 7.2 7.8 7.6 2.7 17.3 9.2

1st Quartile 0.1 7.2 1.0 7.2 4.2 4.9 5.6 1.0 6.4 1.5

Median -1.9 3.3 -1.1 3.3 3.0 2.9 4.4 0.4 4.1 -0.5

3rd Quartile -2.8 1.7 -2.2 1.7 1.9 1.8 3.6 -1.2 1.9 -1.8

95th Percentile -6.5 0.2 -4.9 0.2 0.5 0.5 1.9 -4.6 0.3 -7.9

Population 1,343 1,336 1,339 1,336 1,297 1,238 970 1,438 1,505 1,547

PIMCO

Peer Group Analysis


IM U.S. Fixed Income (SA+CF)


99




PIMCO



-1.6

-0.8

0.0

0.8

1.6

2.4

3.2

4.0

Re

turn

(%)


PIMCO


0.0

0.9

1.8

2.7

3.6

4.5

5.4

6.3

12/93 3/96 6/98 9/00 12/02 3/05 6/07 9/09 12/11 3/14 12/16

ActiveReturn

TrackingError

InformationRatio



ActualCorrelation

PIMCO 0.40 1.23 0.33 0.81 0.80 0.30 1.05 2.31 2.79 0.90

Barclays Intermediate Aggregate Bond Index 0.00 0.00 N/A 1.00 0.77 0.00 1.00 1.91 2.39 1.00


PIMCO Risk Profile

As of December 31, 2016PIMCO

100

Return Summary


Account Information



0.0

3.0

6.0

-3.0

-6.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

5Years

Inception7/1/11

-2.0

2.0

-1.7

2.02.4

1.9

2.6

-2.1

1.8

-1.8

1.82.4

1.9

2.6

Account Name: BlackRock Intermediate Aggregate







0.0%

0.2%

0.4%

-0.2 %

-0.4 %

-0.6 %

9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 12/16 BlackRock Intermediate Aggregate

Benchmark

0.99

1.00

1.01

6/11 3/12 12/12 9/13 6/14 3/15 12/15 12/16

1.00

BlackRock Intermediate Aggregate Performance Summary

As of December 31, 2016BlackRock Intermediate Aggregate

101


Writeup

102

Total Emerging Market Debt

103

Return Summary


Current Allocation


Emerging Market Debt Benchmark

0.0

8.0

16.0

24.0

-8.0

-16.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

5Years

Inception7/1/11

-5.3

10.1

-2.2

10.1

0.11.8 1.1

-4.6

10.1

-1.4

10.1

0.32.0 1.5

December 31, 2016 : $317M

Stone Harbor:35.6%Investec:32.1%

Wellington:32.3%

Total Emerging Market Debt Benchmark

0.98

1.00

1.02

1.04

1.06

6/11 3/12 12/12 9/13 6/14 3/15 12/15 12/16

1.02


0.0%

2.0%

4.0%

-2.0 %

-4.0 %

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

Total Emerging Market Debt Portfolio Overview

As of December 31, 2016Total Emerging Market Debt

104

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

2015 2014 2013

Total Emerging Market Debt -4.6 (68) 10.1 (55) -1.4 (66) 10.1 (55) 0.3 (63) 2.0 (61) -8.6 (69) 0.2 (57) -7.3 (63)¢

Emerging Market Debt Benchmark -5.3 (78) 10.1 (55) -2.2 (74) 10.1 (55) 0.1 (63) 1.8 (62) -8.7 (69) -0.3 (59) -7.1 (62)�

5th Percentile -0.1 15.6 3.9 15.6 6.2 7.2 1.4 7.2 0.9

1st Quartile -2.3 12.1 1.6 12.1 4.7 5.7 -0.6 4.7 -3.5

Median -3.7 10.6 -0.1 10.6 2.8 4.2 -3.6 0.6 -6.5

3rd Quartile -5.0 9.1 -2.3 9.1 -2.8 -0.5 -13.4 -4.3 -8.7

95th Percentile -6.3 5.9 -4.2 5.9 -5.1 -2.1 -16.4 -7.3 -10.8

Population 133 133 133 133 126 108 166 167 155


Peer Group Analysis


IM Emerging Markets Debt (SA+CF)


105

1 Quarter

0 10 20 30 40 50 60 70 80 90 100-10-20-30

Investec

Stone Harbor

Wellington

Benchmark Effect

Cash Flow Effect

Total Excess Return

2

9

41

14

0

65

1 Year

0 50 100 150 200-50-100-150-200

Investec

Stone Harbor

Wellington

Benchmark Effect

Cash Flow Effect

Total Excess Return

-120

33

83

-1

0

-5




106

Return Summary


Account Information

Wellington JPM EMBI Global

0.0

8.0

16.0

24.0

-8.0

-16.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

5Years

Inception7/1/11

-4.2

10.2

-0.6

10.2

5.6 5.4 5.5

-2.9

12.8

2.0

12.8

5.8 6.2 5.7

Account Name: Wellington



Asset Class: International Fixed Income

Benchmark: JPM EMBI Global

Peer Group: IM Emerging Markets Debt (SA+CF)


0.0%

2.0%

4.0%

-2.0 %

-4.0 %

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

Wellington Benchmark

0.96

0.98

1.00

1.02

1.04

6/11 3/12 12/12 9/13 6/14 3/15 12/15 12/16

1.01

Wellington Performance Summary

As of December 31, 2016Wellington

107

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0R

etu

rn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

2015 2014 2013

Wellington -2.9 (36) 12.8 (22) 2.0 (19) 12.8 (22) 5.8 (11) 6.2 (16) -1.0 (30) 6.1 (11) -5.1 (36)¢

JPM EMBI Global -4.2 (64) 10.2 (55) -0.6 (59) 10.2 (55) 5.6 (13) 5.4 (28) 1.2 (8) 5.5 (17) -6.6 (52)�

5th Percentile -0.1 15.6 3.9 15.6 6.2 7.2 1.4 7.2 0.9

1st Quartile -2.3 12.1 1.6 12.1 4.7 5.7 -0.6 4.7 -3.5

Median -3.7 10.6 -0.1 10.6 2.8 4.2 -3.6 0.6 -6.5

3rd Quartile -5.0 9.1 -2.3 9.1 -2.8 -0.5 -13.4 -4.3 -8.7

95th Percentile -6.3 5.9 -4.2 5.9 -5.1 -2.1 -16.4 -7.3 -10.8

Population 133 133 133 133 126 108 166 167 155

Wellington

Peer Group Analysis




108

Return Summary


Account Information

Stone Harbor Performance Benchmark

0.0

8.0

16.0

24.0

-8.0

-16.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

3Years

5Years

Inception7/1/11

-5.1

10.2

-1.9

10.2

1.02.3

1.6

-4.8

11.1

-1.8

11.1

-0.1

0.90.1

Account Name: Stone Harbor



Asset Class: International Fixed Income

Benchmark: Performance Benchmark



0.0%

2.0%

4.0%

-2.0 %

-4.0 %

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

Stone Harbor Benchmark

0.85

0.90

0.95

1.00

1.05

6/11 3/12 12/12 9/13 6/14 3/15 12/15 12/16

0.92

Stone Harbor Performance Summary

As of December 31, 2016Stone Harbor

109

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

Re

turn

1Quarter

2016FiscalYTD

1Year

3Years

5Years

2015 2014 2013

Stone Harbor -4.8 (71) 11.1 (40) -1.8 (69) 11.1 (40) -0.1 (64) 0.9 (66) -8.1 (67) -2.3 (67) -9.6 (82)¢

Performance Benchmark -5.1 (76) 10.2 (55) -1.9 (70) 10.2 (55) 1.0 (58) 2.3 (59) -7.1 (63) 0.7 (50) -7.1 (62)�

5th Percentile -0.1 15.6 3.9 15.6 6.2 7.2 1.4 7.2 0.9

1st Quartile -2.3 12.1 1.6 12.1 4.7 5.7 -0.6 4.7 -3.5

Median -3.7 10.6 -0.1 10.6 2.8 4.2 -3.6 0.6 -6.5

3rd Quartile -5.0 9.1 -2.3 9.1 -2.8 -0.5 -13.4 -4.3 -8.7

95th Percentile -6.3 5.9 -4.2 5.9 -5.1 -2.1 -16.4 -7.3 -10.8

Population 133 133 133 133 126 108 166 167 155

Stone Harbor

Peer Group Analysis




110

Return Summary


Account Information

Investec

JPM GBI-EM Global Diversified

0.0

8.0

16.0

-8.0

-16.0

Re

turn

1Quarter

FiscalYTD

2016 1Year

Inception3/1/14

-6.1

-3.6

9.9 9.9

-4.0

-6.0

-4.3

6.4 6.4

-5.3

Account Name: Investec



Asset Class: International-Emerging Fixed Income

Benchmark: JPM GBI-EM Global Diversified



0.0%

2.0%

4.0%

-2.0 %

-4.0 %

3/14 9/14 3/15 9/15 3/16 9/16 12/16

Investec Benchmark

0.93

0.96

0.99

1.02

1.05

2/14 8/14 2/15 8/15 2/16 8/16 12/16

0.96

Investec Performance Summary

As of December 31, 2016Investec

111

-28.0

-20.0

-12.0

-4.0

4.0

12.0

20.0

28.0

Re

turn

1Quarter

2016FiscalYTD

1Year

2015

Investec -6.0 (90) 6.4 (93) -4.3 (97) 6.4 (93) -15.4 (85)¢

JPM GBI-EM Global Diversified -6.1 (92) 9.9 (58) -3.6 (87) 9.9 (58) -14.9 (81)�

5th Percentile -0.1 15.6 3.9 15.6 1.4

1st Quartile -2.3 12.1 1.6 12.1 -0.6

Median -3.7 10.6 -0.1 10.6 -3.6

3rd Quartile -5.0 9.1 -2.3 9.1 -13.4

95th Percentile -6.3 5.9 -4.2 5.9 -16.4

Population 133 133 133 133 166

Investec

Peer Group Analysis




112


113

Return Summary


Current Allocation

Total Opportunity Fund Opportunity Benchmark

0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

Inception6/1/14

0.5

7.1

5.0

7.1

2.2

4.5

11.0

8.5

11.0

7.0

December 31, 2016 : $222M

Torchlight Debt Opportunity Fund V:2.4%Davidson Kempner:8.2%

Torchlight Debt Opportunity Fund IV:23.8%

Mesa West:5.5%

Grosvenor Credit Opportunities:60.1%

Total Opportunity Fund Benchmark

0.91

0.98

1.05

1.12

1.19

1.26

6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16

1.14


0.0%

5.0%

10.0%

15.0%

-5.0 %

-10.0 %

6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16

Total Opportunity Fund Portfolio Overview

As of December 31, 2016Total Opportunity Fund

114

1 Quarter

0 100 200 300 400 500 600-100-200

Davidson Kempner


Mesa West

Grosvenor Credit Opportunities

Torchlight Debt Opportunity Fund IV

Benchmark Effect

Cash Flow Effect

Total Excess Return

-6

3

5

115

73

204

-2

392

1 Year

0 100 200 300 400 500 600-100-200

Davidson Kempner


Mesa West



Benchmark Effect

Cash Flow Effect

Total Excess Return

-38

12

23

25

56

331

-11

399




115


Writeup

116

Return Summary


Account Information



0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

Inception2/1/14

1.9

7.8

3.7

7.8

11.4

4.8

10.0

7.7

10.0

8.5

Account Name: Torchlight Debt Opportunity Fund IV



Asset Class: US Private Real Estate

Benchmark: NCREIF ODCE Index (Net)

Peer Group:


0.0%

4.0%

8.0%

-4.0 %

-8.0 %

6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 Torchlight Debt Opportunity Fund IV

Benchmark

0.85

0.90

0.95

1.00

1.05

1/14 7/14 1/15 7/15 1/16 7/16 12/16

0.93

Torchlight Debt Opportunity Fund IV Performance Summary

As of December 31, 2016Torchlight Debt Opportunity Fund IV

117

Return Summary


Account Information


50%/50% Credit Suisse HY and Distressed

0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

Inception6/1/14

3.1

12.0

7.4

12.0

1.4

4.9

12.5

9.7

12.5

4.2

Account Name: Grosvenor Credit Opportunities



Asset Class: Global Mixed Assets

Benchmark: 50%/50% Credit Suisse HY and Distressed

Peer Group:


0.0%

2.0%

4.0%

-2.0 %

-4.0 %

9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 Grosvenor Credit Opportunities

Benchmark

0.96

1.00

1.04

1.08

1.12

5/14 8/14 11/14 2/15 5/15 8/15 11/15 2/16 5/16 8/16 12/16

1.07

Grosvenor Credit Opportunities Performance Summary

As of December 31, 2016Grosvenor Credit Opportunities

118

Return Summary


Account Information

Mesa West NCREIF ODCE Index (Net)

0.0

5.0

10.0

15.0

20.0

Re

turn

1Quarter

2016 FiscalYTD

1Year

Inception12/1/13

1.9

7.8

3.7

7.8

11.8

2.8

11.0

5.5

11.0

8.6

Account Name: Mesa West





Peer Group:


0.0%

0.9%

1.8%

-0.9 %

-1.8 %

-2.7 %

3/14 9/14 3/15 9/15 3/16 12/16

Mesa West Benchmark

0.84

0.90

0.96

1.02

1.08

11/13 5/14 11/14 5/15 11/15 5/16 12/16

0.92

Mesa West Performance Summary

As of December 31, 2016Mesa West

119

Return Summary


Account Information



0.0

100.0

-100.0

-200.0

-300.0

Re

turn

1Quarter

2016 FiscalYTD

Inception6/1/15

1.9 7.8 3.7 11.73.415.2 13.4

-156.6

Account Name: Torchlight Debt Opportunity Fund V





Peer Group:


0.0%

8.0%

16.0%

-8.0 %

-16.0 %

9/15 12/15 3/16 6/16 9/16 12/16 Torchlight Debt Opportunity Fund V

Benchmark

-1.20

-0.60

0.00

0.60

1.20

1.80

5/15 8/15 11/15 2/16 5/16 8/16 12/16

-0.34

Torchlight Debt Opportunity Fund V Performance Summary

As of December 31, 2016Torchlight Debt Opportunity Fund V

120

Return Summary

Monthly Excess Performance Ratio of Cumulative Wealth - Since Inception

Account Information

Davidson Kempner Opportunity Benchmark

0.0

8.0

16.0

-8.0

-16.0

-24.0

Re

turn

1Quarter

FiscalYTD

Inception6/1/16

0.5

5.0 4.7

-1.8

-4.0

-12.5

Account Name: Davidson Kempner



Asset Class: US Mixed Assets

Benchmark: Opportunity Benchmark

Peer Group:


0.0%

5.0%

-5.0 %

-10.0 %

-15.0 %

6/16 7/16 8/16 9/16 10/16 11/16 12/16

Davidson Kempner Benchmark

0.72

0.80

0.88

0.96

1.04

1.12

5/16 6/16 7/16 8/16 9/16 10/16 11/16 12/16

0.84

Davidson Kempner Performance Summary

As of December 31, 2016Davidson Kempner

121


Writeup

122

Appendix

123

Description of Benchmarks and Universes

Total FundPerformance Benchmark: Currently a composite index consisting of 23.9% Dow Jones U.S. Total Stock Market Index, 17.0% Non-U.S. Equity Benchmark, 23.1%

Barclays Intermediate Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 5.0% MSCI All Country World Index, 5.0% Emerging Market Debt Benchmark,

12.0% Private Equity/Infrastructure Benchmark, and 3.0% Opportunity Benchmark. Prior to December 2016 a composite consisting of 24.2% Dow Jones U.S. Total

Stock Market Index, 17.1% Non-U.S. Equity Benchmark, 23.2% Barclays Intermediate Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 5.0% MSCI All

Country World Index, 5.0% Emerging Market Debt Benchmark, 12.0% Private Equity/Infrastructure Benchmark, and 2.5% Opportunity Benchmark. Prior to April 2016

a composite index consisting of 23.6% Dow Jones U.S. Total Stock Market Index, 17.6% Non-U.S. Equity Benchmark, 23.2% Barclays Intermediate Aggregate Bond

Index, 11.0% Custom Real Estate Benchmark, 5.0% MSCI All Country World Index, 5.0% Emerging Market Debt Benchmark, 12.0% Private Equity/Infrastructure

Benchmark, and 2.5% Opportunity Benchmark. Prior to January 2016 a composite index consisting of 24.5% Dow Jones U.S. Total Stock Market Index, 17.3% Non-

U.S. Equity Benchmark, 23.2% Barclays Intermediate Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 5.0% MSCI All Country World Index, 5.0%

Emerging Market Debt Benchmark, 11.5% Private Equity/Infrastructure Benchmark, and 2.5% Opportunity Benchmark. Prior to October 2015, a composite index

consisting of 25.4% Dow Jones U.S. Total Stock Market Index, 17.5% Non-U.S. Equity Benchmark, 23.2% Barclays Intermediate Aggregate Bond Index, 11.0%

Custom Real Estate Benchmark, 5.0% MSCI All Country World Index, 5.0% Emerging Market Debt Benchmark, 9.0% Private Equity Benchmark, 2.5% Opportunity

Benchmark and 1.5% Infrastructure Benchmark. Prior to June 2015, a composite index consisting of 25.6% Dow Jones U.S. Total Stock Market Index, 17.7% Non-

U.S. Equity Benchmark, 23.2% Barclays Intermediate Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 5.0% MSCI All Country World Index, 5.0%

Emerging Market Debt Benchmark, 8.5% Private Equity Benchmark, 2.5% Opportunity Benchmark and 1.5% Infrastructure Benchmark. Prior to March 2015, a

composite index consisting of 26.5% Dow Jones U.S. Total Stock Market Index, 18.3% Non-U.S. Equity Benchmark, 23.2% Barclays Intermediate Aggregate Bond

Index, 11.0% Custom Real Estate Benchmark, 5.0% MSCI All Country World Index, 5.0% Emerging Market Debt Benchmark, 7.0% Private Equity Benchmark, 2.5%

Opportunity Benchmark and 1.5% Infrastructure Benchmark. Prior to January 2015, a composite consisting of 29.0% Dow Jones U.S. Total Stock Market Index, 19.0%

Non-U.S. Equity Benchmark, 24.0% Barclays Intermediate Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 5.0% MSCI All Country World Index, 5.0%

Emerging Market Debt Benchmark, 5.0% Private Equity Benchmark, and 2.0% Opportunity Benchmark. Prior to June 2014, a composite consisting of 30.0% Dow

Jones U.S. Total Stock Market Index, 20.0% Non-U.S. Equity Benchmark, 24.0% Barclays Intermediate Aggregate Bond Index, 11.0% Custom Real Estate

Benchmark, 5.0% MSCI All Country World Index, 5.0% Emerging Market Debt Benchmark, and 5.0% Private Equity Benchmark. Prior to April 2014, a composite

consisting of 30.5% Dow Jones U.S. Total Stock Market Index, 20.0% Non-U.S. Equity Benchmark, 24.0% Barclays Intermediate Aggregate Bond Index, 11.0%

Custom Real Estate Benchmark, 5.0% MSCI All Country World Index, 5.0% Emerging Market Debt Benchmark, and 4.5% Private Equity Benchmark. Prior to March

2014, a composite consisting of 32.5% Dow Jones U.S. Total Stock Market Index, 20.0% MSCI All Country World ex-U.S. IMI Index, 24.0% Barclays Intermediate

Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 5% MSCI All Country World Index, 3.0% Emerging Market Debt Benchmark, and 4.5% Private Equity

Benchmark. As the Private Equity allocation grows, the Policy allocation to the Private Equity benchmark will increase in 50 basis point increments with a

corresponding decrease to the Dow Jones U.S. Total Stock Market Index. Prior to June 2012, a composite index consisting of 36.2% Dow Jones U.S. Total Stock

Market Index, 23.3% MSCI All Country World ex-U.S. IMI Index, 24.0% Barclays Capital Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 3% Emerging

Market Debt Benchmark, and 2.5% Private Equity Benchmark. Prior to January 2012, a composite index consisting of 36.7% Dow Jones U.S. Total Stock Market

Index, 23.3% MSCI All Country World ex-U.S. IMI Index, 24.0% Barclays Capital Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 3% Emerging Market

Debt Benchmark, and 2% Private Equity Benchmark. Prior to August 31, 2011, a composite index consisting of 38.0% Dow Jones U.S. Total Stock Market Index,

20.0% MSCI All Country World ex-U.S. IMI Index, 24.0% Barclays Capital Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, 4.0% Citigroup WGBI Non-

US Index, and 3% Emerging Market Debt Benchmark. Prior to June 30, 2011, a composite index consisting of 41.0% Dow Jones U.S. Total Stock Market Index,

20.0% MSCI All Country World ex-U.S. IMI Index, 24.0% Barclays Capital Aggregate Bond Index, 11.0% Custom Real Estate Benchmark, and 4.0% Citigroup WGBI

Non-US Index. Prior to March 2011, a composite index consisting of 22.8% S&P 500 Index, 7.6% S&P 400 Mid Cap Index, 7.6% Russell 2000 Index, 18.0% Barclays

Aggregate Bond Index, 4.0% Citigroup WGBI Non-US Index, 9.0% Citigroup 90 day T-Bill Index + 3%, 3.4% S&P Developed ex-U.S. Small Cap Index, 13.6% MSCI

All Country World ex-U.S. Index, 3.0% Merrill Lynch All Convertibles All Quality Index, 8.25% NCREIF Property Index, and 2.75% FTSE EPRA NAREIT Developed

REIT Index.

Appendix

124


Universe: The rankings are based on a universe of public funds compiled by BNY Mellon Performance and Risk Analytics.

Total U.S. Equity

Performance Benchmark: Currently the Dow Jones U.S. Total Stock Market Index. Prior to March 2011, a composite index consisting of 55.6% S&P

500 Index, 18.54% S&P 400 Mid Cap Index, 18.54% Russell 2000 Index, and 7.32% Merrill Lynch All Convertibles All Quality Index

Universe: The rankings are based on a universe of public funds' U.S. equity component compiled by BNY Mellon Performance and Risk Analytics


Performance Benchmark: The S&P 500 Index

Universe: Investor Metrics U.S. Large Cap Equity (SA+CF)

BlackRock Russell 1000 Growth Index

Performance Benchmark: The Russell 1000 Growth Index

Universe: Investor Metrics U.S. Large Cap Equity (SA+CF)


Performance Benchmark: The Russell 1000 Value Index

Universe: Investor Metrics U.S. Large Cap Value Equity (SA+CF)

BlackRock Russell 2000 Growth Index

Performance Benchmark: The Russell 2000 Growth Index

Universe: Investor Metrics U.S. Large Cap Growth Equity (SA+CF)

DFA Small Cap Value


Universe: Investor Metrics U.S. Small Cap Value Equity (SA+CF)



Universe: Investor Metrics U.S. Small Cap Value Equity (SA+CF)

Appendix

125



Performance Benchmark: The Convertibles Benchmark consisting of the Merrill Lynch All Convertibles All Quality index since January 1, 2005

Universe: Investor Metrics Convertible Bonds (MF)

Allianz Structured Alpha

Performance Benchmark: S&P 500 Index


Performance Benchmark: Currently consisting of 95% MSCI All Country World ex-U.S. IMI Index and 5% MSCI Emerging Markets Index. Prior to April,

2014, the index consisted of the MSCI All Country World ex-U.S. IMI Index. Prior to March 2011, a composite index consisting of 80% MSCI All

Country World ex-U.S. Index, and 20% S&P Developed ex-U.S. Small Cap Index since January 1, 2004

Universe: The rankings are based on a universe of public funds' Non-U.S. equity component compiled by BNY Mellon Performance and Risk Analytics.


Performance Benchmark: The MSCI All Country World ex-U.S. IMI Index

Universe: Investor Metrics International Equity (SA+CF)


Performance Benchmark: The MSCI EAFE Index. Prior to April 2011, it was the MSCI All Country World ex-U.S. Index.

Universe: Investor Metrics International Equity (SA+CF)


Performance Benchmark: Non-US Small Cap Benchmark consisting of the S&P Developed ex-U.S. Small Cap Index since January 1, 2002.

Universe: Investor Metrics International Small Cap Equity (SA+CF)


Performance Benchmark: Non-US Small Cap Benchmark consisting of the S&P Developed ex-U.S. Small Cap Index

Universe: Investor Metrics International Small Cap Equity (SA+CF)

Appendix

126


Aberdeen

Performance Benchmark: The MSCI All Country World ex-U.S. Index

Universe: Investor Metrics Emerging Markets Equity (SA+CF)

Neuberger Berman

Performance Benchmark: The MSCI Emerging Markets Index

Universe: Investor Metrics Emerging Markets Equity (SA+CF)

Total Global Equity

Performance Benchmark: The MSCI All Country World Index

Universe: Investor Metrics Global Equity (SA+CF)








Performance Benchmark: A composite index consisting of the Barclays Intermediate Aggregate Bond Index since July 1, 2013. From July 2009 to July

2013 it was the Barclays Aggregate Bond Index.

Universe: The rankings are based on a universe of public funds' U.S. fixed income component compiled by BNY Mellon Performance and Risk

Analytics

Metropolitan West



Universe: Investor Metrics U.S. Fixed Income (SA+CF)

Appendix

127


PIMCO









Performance Benchmark: Currently consists of 40% JP Morgan Emerging Markets Bond Index (EMBI) Global Diversified and 60% JP Morgan

Government Bond Index Emerging Markets (GBI-EM) Global Diversified

Universe: Investor Metrics Emerging Markets Debt (SA+CF)

Wellington

Performance Benchmark: JP Morgan Emerging Markets Bond Index (EMBI) Global


Stone Harbor

Performance Benchmark: Consists of 50% JP Morgan Emerging Markets Bond Index (EMBI) Global Diversified and 50% JP Morgan Government

Bond Index Emerging Markets (GBI-EM) Global Diversified


Investec

Performance Benchmark: JP Morgan Government Bond Index Emerging Markets (GBI-EM) Global Diversified

Universe: Investor Metrics Emerging Markets Debt (SA+CF):

Appendix

128


Total Real Estate

Performance Benchmark: Consists of 90% NFI-ODCE Index plus 50 basis points annually and 10% the FTSE EPRA/NAREIT Global Index. Prior to

October 2011, it was 75% NCREIF Net Property Index plus 50 basis points annually and 25% the FTSE EPRA/NAREIT Global Index.

Private Real Estate

Performance Benchmark: NFI-ODCE Index plus 50 basis points annually. Prior to October 2011, the benchmark was the NCREIF Net Property Index

(NPI) plus 50 basis points annually.

Brookfield Global REIT

Performance Benchmark: FTSE EPRA/NAREIT Global Index, which includes all tax-qualified equity REITs meeting certain size and liquidity criteria

that are listed on the New York Stock Exchange, the American Stock Exchange, or the NASDAQ National Market List.


Performance Benchmark: Consists of 78% MSCI All Country World IMI Index and 22% Barclays Intermediate Aggregate Bond Index


Performance Benchmark: Consists of 50% Credit Suisse High Yield Index and 50% Credit Suisse Distressed Index

Davidson Kempner

Performance Benchmark: Consists of 78% MSCI All Country World IMI Index and 22% Barclays Intermediate Aggregate Bond Index

Torchlight Debt Opportunity Fund IV, Mesa West, and Torchlight Opportunity Fund V

Performance Benchmark: Consists of the NFI-ODCE Index

Total Private Equity/Infrastructure, Stepstone-Private Equity, GCM-Private Equity, Stepstone Infrastructure, and GCM Infrastructure

Performance Benchmark: Absolute annualized 10% return

Appendix

129


S&P 500 Index - Is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy

through changes in the aggregate market value of 500 stocks representing all major industries.

Russell 1000 Growth Index - Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted

growth values.

Russell 1000 Value Index - Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth

values.

Russell 2000 Growth Index - Measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted

growth values.

Russell 2000 Value Index - Comprises securities in the Russell 2000 Index with a less-than average growth orientation. Companies in this index

generally have low price-to-book and price-to-earnings ratios. Indexes are unmanaged and cannot be invested in directly.

MSCI All Country World ex-U.S. IMI - Is an unmanaged index representing 44 developed and emerging markets around the world that collectively

comprise virtually all of the foreign equity stock markets.

MSCI EAFE Index - A capitalization-weighted index of 21 developed country markets in Europe, Australia, Asia and the Far East, excluding the U.S.

market.

S&P Developed ex-U.S. Small Cap Index - Is a market capitalization-weighted index measuring capital appreciation. It is defined as an unmanaged

world equity index representative of small capitalization securities, defined as the bottom 20% of any given country's available market capitalization

excluding the U.S. The Growth Index covers those companies in each country that exhibit the characteristics of growth.

Barclay's Aggregate Bond Index - Is an unmanaged index composed of securities from the Barclays Capital Government/Corporate Bond Index,

Mortgage-Backed Securities Index and the Asset-Backed Securities Index. Total return comprises price appreciation/depreciation and income as a

percentage of the original investment. Indices are rebalanced monthly by market capitalization.

Barclay's Intermediate Aggregate Bond Index - Is a market value-weighted index consisting of the Barclays Capital Corporate, Government and

Mortgage-Backed Securities Indices. The Index also includes credit card-, auto-, and home equity loan-backed securities. The Intermediate Aggregate

Bond Index is the broadest measure of the aggregate U.S. fixed-income market of bonds with maturities from one to ten years.

Appendix

130


JP Morgan EMBI Global Diversified - Comprised of dollar-denominated Brady bonds, traded loans and Eurobonds issued by emerging market

sovereign and quasi-sovereign entities. The Diversified version limits the weights of the index countries by only including a specified portion of those

countries' eligible current face amounts of debt outstanding, providing for a more even distribution of weights within the countries in the index.

JP Morgan GBI-EM Global Diversified - Designed to provide a comprehensive measure of local currency denominated, fixed-rate, government debt

issued in emerging markets.

MSCI All Country World Index - A capitalization-weighted index representing 24 developed and 21 emerging market countries around the world.

NFI-ODCE Index - NCREIF Fund Index Open-end Diversified Core Equity Index is an index of investment returns reporting on both a historical and

current basis the results of 28 open-end commingled funds pursuing a core investment strategy; underlying funds are leveraged with gross and net

returns available.

FTSE EPRA/NAREIT Global REIT - An unmanaged market-weighted total return index, which consists of many companies from Global markets

whose floats are larger than $100 million and derive more than half of their revenue from property-related activities.

Appendix

131


Rank - A representation of the percentile position of the performance of a given portfolio, relative to a universe of similar funds. For example, a rank of

25 for a given manager indicates outperformance by that manager of 75% of other funds in that same universe.

Universe - A distribution of the returns achieved by a group of funds with similar investment objectives.

Ratio of Cumulative Wealth Graph - An illustration of a portfolio's cumulative, unannualized performance relative to that of its benchmark. An upward

sloping line indicates superior fund performance. Conversely, a downward sloping line indicates underperformance by the fund. A flat line is indicative

of benchmark-like performance.

Risk/Return Graph - The horizontal axis, annualized standard deviation, is a statistical measure of risk, or the volatility of returns. The vertical axis is

the annualized rate of return. As most investors generally prefer less risk to more risk and always prefer greater returns, the upper left corner of the

graph is the most attractive place to be. The line on this exhibit represents the risk and return tradeoffs associated with market portfolios or index

funds.

Style Map - This illustration represents the manager's style compared to that of the broadest stock index (the Russell 3000). Any manager falling

above the axis is referred to as large-cap and any manager falling below the axis is considered to be medium- to small-cap.

Appendix

132

Allocation

MarketValue ($)

%

Performance(%)

1Quarter

FYTD1

Year3

Years5

Years10

YearsSince

InceptionInception

Date

Total Fund 7,188,152,553 100.0 1.2 5.2 8.5 5.1 9.3 5.6 8.9 01/01/1989

Total Fund Policy Benchmark 0.6 4.0 7.9 5.1 8.7 5.6 8.4

Total U.S. Equity 1,688,385,642 23.5 5.1 11.0 13.0 7.7 14.5 7.4 10.6 01/01/1989

U.S. Equity Benchmark 4.1 8.8 12.6 8.4 14.6 7.6 10.1

Total Non-U.S. Equity 1,160,012,159 16.1 -1.9 4.9 4.8 -0.9 6.1 0.5 7.3 04/01/1995

Non-U.S. Equity Benchmark -1.7 5.3 4.8 -1.5 5.3 1.2 5.2



Total U.S. Fixed Income 1,525,892,337 21.2 -1.8 -1.2 2.3 2.2 2.4 5.0 6.7 04/01/1989

U.S. Fixed Income Benchmark -2.0 -1.7 2.0 2.4 1.9 3.8 5.6

Total Non-U.S. Fixed Income 14,757 0.0









Total Cash 211,669,594 2.9 0.0 0.2 0.3 0.2 0.2 1.6 2.4 10/01/1999


*Real Estate and Private Equity/Infrastructure returns and market values are shown on a one-quarter lag. The market values have been adjusted for current quarter cash flows. Prior to3Q2014, the publicly-traded portion of the real estate portfolio (REITs) are reported in real time.*The returns shown for the Total Overlay represent the impact of the Clifton Overlay service on the Total Fund return

Asset Allocation & Gross Performance


133

Disclaimers and Notes

134

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 any

other matter set forth herein.

§ The client portfolio market value data presented in this report has been obtained from the custodian. AHIC has compared this information to the investment managers’

reported returns and believes the information to be accurate. AHIC has not conducted additional audits 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 Russell

Investment 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 general

accounts, and healthcare organizations with either pension or investment pool assets greater than $150 million. Study participants were asked to provide quantitative and

qualitative evaluations of their investment consultants. Based on those responses, Greenwich Associates calculates a score on the Greenwich Quality Index for each

consultant named. Consultants with scores that top those awarded to competitors by a statistically significant margin are named Greenwich Quality Leaders. Visit the

Greenwich Associates website (https://www.greenwich.com/asset-management/leading-investment-consultants-form-deep-advisory-relationships) to read a copy of the full

report 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 than

one 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 plan

totals.

Disclaimers and Notes

135

Documents

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