All Vendor Summary - Pepperdine University...Strong retail sales and consumer spending in the...
Transcript of All Vendor Summary - Pepperdine University...Strong retail sales and consumer spending in the...
Prepared for:
Retirement Plan Quarterly Investment
Review
All Vendor Summary
December 31, 2010
Pepperdine University Retirement PlanPlan Name:
Quarter Ending:
Section 1 – Market Overview Industry Analysis
Section 2 – Diversified Plan Portfolio Summary Fund Performance Summary T. Rowe Price Retirement - Qualitative Analysis Summary Portfolio Xpress Allocation (underlying holdings) Quantitative Analysis Summary Evaluation Methodology Changes Correlation Matrix Overlap Analysis Range of Investments Holdings Based Style Analysis Portfolio Analysis Portfolio Return vs. Custom Benchmark Watch List / Fund Changes Summary
Table of Contents
Section 3 – Diversified Plan Asset Allocation Asset Allocation by Fund Asset Allocation by Category Asset Allocation Quarterly Comparison Average Account Balance By Age Asset Allocation by Age Group Portfolio Xpress Models
Section 4 – TIAA-CREF Plan Portfolio Summary Fund Performance Summary Quantitative Analysis Summary Fund Evaluation Analysis Correlation Matrix Holdings Based Style Analysis Portfolio Analysis Portfolio Return vs. Custom Benchmark
Section 5 – TIAA-CREF Plan Asset Allocation Asset Allocation by Fund Asset Allocation by Category % Asset Allocation Quarterly Comparison Growth of Plan Assets
Section 6 – Prudential Plan Portfolio Summary Fund Performance Summary Quantitative Analysis Summary Fund Evaluation Analysis Correlation Matrix Holdings Based Style Analysis Portfolio Analysis Portfolio Return vs. Custom Benchmark
Section 7 – Prudential Plan Asset Allocation Asset Allocation by Fund Asset Allocation by Category % Asset Allocation Quarterly Comparison ($ and %) Growth of Plan Assets
Appendix Evaluation Methodology Changes Glossary Retirement Plan Limits Warranties/Disclosures
Market Overview
December 31, 2010
Section 1
4th Quarter 2010 Market Overview
44Source: Standard & Poor’s, FRB, BLS, BEA, JP Morgan. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
Economic Growth (GDP)
5.6% (4Q)3.7% (1Q)1.7% (2Q)2.6% (3Q)
3.2% (4Qe)
Third quarter GDP was revised upward from 2.5% to 2.6%. Fed announced the Treasury buyback program (“QE2”) and plans to purchase $600 billionin Treasuries Strong retail sales and consumer spending in the holiday season helped spur the economy Bush’s tax cuts were extended, providing relief to both businesses and individuals
Jobs 9.0% Concerns about employment losses not returning to the economy Employment gains in December included the leisure, hospitality and health care industries Since December 2009, total payroll employment has only increased by 1.1 million. Unemployment rate decreased to 9.0% in January (lowest level since May 2009)
Inflation (CPI)
Headline1.5%Core0.8%
Core inflation grew at 0.8% for the past 12 months ending 12/31/2010, lowest 12-monthincrease since March 1961 FOMC noted in their third quarter meeting that “inflation is below target, and is likely toremain at that level for some period of time.”
Interest Rates 0% - 0.25%
The Federal Open Market Committee (FOMC) left rates unchanged after meeting in thefourth quarter Yield curve continues to rise upward with 3-month T-bills ending the quarter at 0.12% andthe 10-year Treasury bond at 3.3%
Investment Returns
BC Agg-1.3%
S&P 50010.8%
MSCI EAFE6.6%
Economic Summary
1Q10 2Q10 3Q10 4Q10 2010 2009 2008
BC Aggregate Bond Index
1.8% 3.5% 2.5% -1.3% 6.5% 5.9% 5.2%
S&P 500 Index 5.4% -11.4% 11.3% 10.8% 15.1% 26.5% -37.0%
MSCI EAFE Index 0.9% -14.0% 16.5% 6.6% 7.8% 31.8% -43.4%
4th Quarter 2010 Market Overview
55
Gross Domestic Product
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
66
Economic Growth Differential
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
77
Employment
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
88
Consumer Price Index
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
99
Consumer Confidence
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
1010
Corporate Profits
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
1111
Federal Finances
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
1212
The Federal Reserve
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
1313
Source: Standard & Poor’s, Russell Investment Group, JPMorgan Asset Management. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
Fixed Income Sectors Quarter and Annual Returns
-0.6-1.2
-2.6
-1.6
0.2
-1.3
3.2
6.3
12.8
5.9
9.0
5.4
6.5
15.1
5.0
8.9
5.1
7.16.5
5.9
10.4
5.3
8.3
5.56.0
6.35.8
8.9
7.0
10.5
5.4
6.6
5.9 5.8
8.9
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
TIPS EMD Treasuries Corporate MBS BC Aggregate High Yield
4Q 101 Year3 Year5 Year10 Year
4th Quarter 2010 Market Overview
1414
Fixed Income Sectors Calendar Year Returns
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 4Q10 2010
Treasuries10.0%
EMD23.1%
EMD 13.7%
Corporate 10.3%
TIPS 16.7%
High Yield 29.0%
EMD 11.9%
EMD 12.3%
High Yield 11.8%
TIPS 11.6%
Treasuries 13.7%
High Yield 58.2%
High Yield 3.2%
High Yield 15.1%
Barclays Agg8.7%
High Yield2.4%
Treasuries 13.5%
Barclays Agg 8.4%
EMD 12.2%
EMD 26.9%
High Yield 11.1%
Municipals 3.5%
EMD 10.0%
Treasuries 9.0%
MBS 8.3%
EMD 34.2%
MBS 0.2%
EMD 12.8%
Corporate8.6%
TIPS 2.4%
TIPS 13.2%
MBS 8.2%
Treasuries 11.8%
TIPS 10.6%
TIPS 6.3%
TIPS 2.8%
MBS 5.2%
Barclays Agg 7.0%
Barclays Agg 5.2%
Corporate 18.7%
TIPS -0.7%
Corporate 9.0%
MBS7.0%
MBS1.9%
Municipals 11.7%
TIPS 7.9%
Barclays Agg
10.3%
Corporate 8.2%
Corporate 5.4%
Treasuries 2.8%
Municipal 4.8%
MBS 6.9%
TIPS -2.4%
Municipal 12.9%
EMD -1.2%
Barclays Agg 6.5%
Municipals6.5%
Barclays Agg
-0.8%
Barclays Agg
11.6%
Treasuries 6.7%
Corporate 10.1%
Municipal 5.3%
MBS 4.7%
High Yield 2.7%
Barclays Agg 4.3%
EMD 5.2%
Municipal -2.5%
TIPS 11.4%
Barclays Agg
-1.3%
TIPS 6.3%
TIPS3.9%
Corporate-2.0%
MBS 11.2%
High Yield 5.3%
Municipal 9.6%
Barclays Agg 4.1%
Municipal 4.5%
MBS 2.6%
Corporate 4.3%
Corporate 4.6%
Corporate -4.9%
Barclays Agg 5.9%
Corporate -1.6%
Treasuries 5.9%
High Yield1.9%
Municipals-2.1%
Corporate 9.1%
Municipal 5.1%
MBS 8.7%
MBS 3.1%
Barclays Agg 4.3%
Barclays Agg 2.4%
Treasuries 3.1%
Municipal 3.4%
EMD -14.7%
MBS 5.9%
Treasuries -2.6%
MBS 5.4%
EMD-11.6%
Treasuries-2.6%
High Yield -5.9%
EMD 1.5%
High Yield -1.4%
Treasuries 2.2%
Treasuries 3.5%
Corporate 1.7%
TIPS 0.4%
High Yield 1.9%
High Yield -26.2%
Treasuries -3.6%
Municipal -4.2%
Municipal 2.4%
Source: Barclays Capital, FactSet, J.P. Morgan Asset Management.
Past performance are not indicative of future returns. Data as of 12/31/2010.
Barclays Agg = BC U.S. Aggregate Bond Index; MBS = BC Fixed Rate MBS Index; Corporate = BC U.S. Corporates Index; Municipals = BC Muni Bond Index; Emerging Debt = BC Emerging Markets Index; High Yield = BC Corporate High Yield Index; Treasuries = BC U.S. Treasury Index; TIPS = BC Real TIPS Index.
4th Quarter 2010 Market Overview
1515
Fixed Income Yields and Returns
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
1616
Emerging Market Debt
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
1717
Source: Standard & Poor’s, Russell Investment Group, JPMorgan Asset Management. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
Domestic Equity Asset Class Quarter and Annual Returns
10.511.8 12.2
14.015.4
17.1
15.516.7
24.8
26.4
24.5
29.1
-4.4
-0.5
1.0 1.02.2 2.2
1.3
3.8 4.14.9
3.5
5.3
3.3
0.0
8.1
3.1
8.4
3.8
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Large Value Large Growth Mid Value Mid Growth Small Value Small Growth
4Q 101 Year3 Year5 Year10 Year
4th Quarter 2010 Market Overview
1818
Domestic Equity Asset Class Calendar Year Returns
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 4Q10 2010
Large Growth38.7%
Mid Growth51.3%
Small Value 22.8%
Small Value 14.0%
Mid Value -9.6%
Small Growth 48.5%
Mid Value 23.7%
Mid Value 12.7%
Small Value 23.5%
Large Growth 11.8%
Small Value -28.9%
Mid Growth 46.3%
Small Growth 17.1%
Small Growth 29.1%
Mid Growth17.9%
Small Growth43.1%
Mid Value 19.2%
Mid Value 2.3%
Small Value -11.4%
Small Value 46.0%
Small Value 22.3%
Mid Growth 12.1%
Large Value 22.2%
Mid Growth 11.4%
Large Value -36.9%
Large Growth 37.2%
Small Value 15.4%
Mid Growth 26.4%
Large Value15.6%
Large Growth33.2%
Large Value 7.0%
Large Value -5.6%
Large Value -15.5%
Mid Growth 42.7%
Large Value 16.5%
Large Value 7.1%
Mid Value 20.2%
Small Growth
7.0%
Large Growth -38.4%
Small Growth 34.5%
Mid Growth 14.0%
Mid Value 24.8%
Mid Value5.1%
Large Value7.4%
Mid Growth -11.8%
Small Growth -9.2%
Mid Growth -27.4%
Mid Value 38.1%
Mid Growth 15.5%
Large Growth
5.3%
Small Growth 13.3%
Large Value -0.2%
Mid Value -38.4%
Mid Value 34.2%
Mid Value 12.2%
Small Value 24.5%
Small Growth
1.2%
Mid Value-0.1%
Large Growth -22.4%
Mid Growth -20.2%
Large Growth -27.9%
Large Value 30.0%
Small Growth 14.3%
Small Value 4.7%
Mid Growth 10.7%
Mid Value -1.4%
Small Growth -38.5%
Small Value 20.6%
Large Growth 11.8%
Large Growth 16.7%
Small Value-6.5%
Small Value-1.5%
Small Growth -22.4%
Large Growth -20.4%
Small Growth -30.3%
Large Growth 29.8%
Large Growth
6.3%
Small Growth
4.2%
Large Growth
9.1%
Small Value -9.8%
Mid Growth -44.3%
Large Value 19.7%
Large Value 10.5%
Large Value 15.5%
Source: FactSet, Russell Investment Group, J.P. Morgan Asset Management.
All data are based on Russell indexes and represent total return for stated period. Small company stocks may be subject to a higher degree of market risk than the securities of more established companies because they tend to be more volatile and less liquid. Each style is representative of corresponding Russell style index. Pas performance is not indicative of future returns.
Data as of 12/31/2010.
Large Value = Russell 1000 Value Index; Large Growth = Russell 1000 Growth Index; Mid Value = Russell Mid Cap Value Index; Mid Growth = Russell Mid Cap Growth Index; Small Value = Russell 2000 Value Index; Small Growth = Russell 2000 Growth Index.
4th Quarter 2010 Market Overview
1919
Source: Standard & Poor’s, Russell Investment Group, JPMorgan Asset Management. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
S&P Index Sector Returns
12.6
6.1
21.5
11.6
3.6
11.8
19.0
10.2
7.3
1.1
10.8
27.7
14.1
20.5
12.1
2.9
26.7
22.2
10.2
19.0
5.5
15.1
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
ConsumerDiscretionary
ConsumerStaples
Energy Financials Health care Industrials Materials Technology Telecom Utilities S&P 500
4Q 10
1 Year
4th Quarter 2010 Market Overview
2020
Source: Standard & Poor’s, Russell Investment Group, JPMorgan Asset Management. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
S&P 500 Weight (%) 16.1 18.6 10.9 10.9 12.0 10.6 10.6 3.1 3.3 3.7
Russell 1000 Growth Weight (%) 4.7 30.9 9.9 13.3 10.9 14.7 9.5 0.9 0.1 5.3
Russell 1000 Value Weight (%) 27.6 5.5 12.5 9.1 12.5 7.7 9.9 5.2 6.8 3.1
4Q10 Return 11.6 10.2 3.6 11.8 21.5 12.6 6.1 7.3 1.1 19.0 10.8
1 Year Annualized Return 12.1 10.2 2.9 26.7 20.5 27.7 14.1 19.0 5.5 22.2 15.0
3 Year Annualized Return -16.3 0.4 -1.7 -2.7 -3.7 6.3 3.5 -3.4 -5.7 -0.5 -2.9
5 Year Annualized Return -10.7 5.0 1.8 3.2 8.3 4.3 7.7 6.6 3.9 7.5 2.3
10 Year Annualized Return -3.7 -1.0 -0.2 2.6 9.9 3.5 5.0 -0.3 0.8 8.7 1.4
15 Year Annualized Return 4.7 7.9 7.6 7.5 12.2 7.6 7.9 2.9 5.8 7.2 6.8
Forward P/E Ratio 11.5 13.5 11.0 14.8 13.0 14.8 14.1 16.0 12.6 14.7 13.1
Trailing P/E Ratio 14.2 16.4 13.9 18.1 14.9 17.5 16.4 14.4 12.0 19.6 15.7
Trailing 20-year Average P/E Ratio 16.0 27.3 24.6 20.5 18.6 19.9 21.5 18.5 14.1 19.6 19.8
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Ener
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Con
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S&P
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S&P Index Sectors – Weights, Performance and P/E Ratios
Indicates outperformance of the overall market for the measured period.
4th Quarter 2010 Market Overview
2121
Source: Standard & Poor’s, Russell Investment Group, JPMorgan Asset Management. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
Global Equity Asset Class Quarter and Annual Returns
7.3
3.7
8.3
6.0
12.1
6.6
10.8
18.9
1.6
16.9
8.8
15.4
7.8
15.1
-0.3
-9.8
0.0
-7.0
-4.6
-7.0
-2.9
12.8
3.0
11.5
2.6
-2.4
2.5 2.3
15.9
3.2
12.0
3.5
1.0
3.5
1.4
-12.00
-7.00
-2.00
3.00
8.00
13.00
18.00
MSCI EME MSCI Europe Ex-UK
Pacific Ex-Japan MSCI UK MSCI Japan MSCI EAFE S&P 500
4Q 101 Year3 Year5 Year10 Year
4th Quarter 2010 Market Overview
2222
Global Equity Asset Class Calendar Year Returns
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 4Q10 2010MSCI
Europe Ex-UK34.0%
MSCI EME
66.4%
MSCI Europe Ex-UK -7.1%
MSCI EME -2.4%
MSCI EME -6.0%
MSCI EME
56.3%
MSCI EME
26.0%
MSCI EME
34.5%
MSCI Europe Ex-UK 36.4%
MSCI EME
39.8%
MSCI Japan -29.1%
MSCI EME
78.5%
MSCI Japan 12.1%
MSCI EME
18.9%
S&P 50028.6%
Pacific Ex-Japan
64.7%
S&P 500 -9.1%
Pacific Ex-Japan
-3.8%
Pacific Ex-Japan
-8.3%
Pacific Ex-Japan
47.0%
MSCI Europe Ex-UK 22.4%
MSCI Japan 25.6%
Pacific Ex-Japan
33.2%
Pacific Ex-Japan
31.7%
S&P 500 -37.0%
Pacific Ex-Japan
72.8%
S&P 500 10.8%
Pacific Ex-Japan
16.9%
MSCI EAFE20.0%
MSCI Japan61.8%
MSCI UK
-11.5%
S&P 500 -11.9%
MSCI Japan -10.1%
MSCI Europe Ex-UK 43.6%
MSCI EAFE20.2%
Pacific Ex-Japan
23.2%
MSCI EME
32.6%
MSCI Europe Ex-UK 17.5%
MSCI EAFE-43.4%
MSCI UK
43.3%
Pacific Ex-Japan
8.3%
MSCI Japan 15.4%
MSCI UK
17.8%
MSCI EAFE26.9%
MSCI EAFE-14.2%
MSCI UK
-14.1%
MSCI UK
-15.2%
MSCI EAFE38.6%
MSCI UK
19.6%
MSCI EAFE13.5%
MSCI UK
30.7%
MSCI EAFE11.2%
MSCI Europe Ex-UK -45.0%
MSCI Europe Ex-UK 32.6%
MSCI EME 7.3%
S&P 500 15.1%
MSCI Japan5.3%
S&P 50021.0%
MSCI Japan -28.1%
MSCI EAFE-21.4%
MSCI EAFE-15.9%
MSCI Japan 36.3%
Pacific Ex-Japan
17.7%
MSCI Europe Ex-UK 11.3%
MSCI EAFE26.3%
MSCI UK
8.4%
MSCI UK
-48.3%
MSCI EAFE31.8%
MSCI EAFE6.6%
MSCI UK
8.8%
Pacific Ex-Japan
-7.8%
MSCI Europe Ex-
UK17.8%
MSCI EME
-30.6%
MSCI Europe Ex-UK -22.0%
MSCI Europe Ex-UK -19.9%
MSCI UK
32.1%
MSCI Japan 16.0%
MSCI UK
7.4%
S&P 500 15.8%
S&P 500 5.5%
Pacific Ex-Japan
-50.0%
S&P 500 26.5%
MSCI UK
6.0%
MSCI EAFE7.8%
MSCI EME
-25.3%
MSCI UK
12.5%
Pacific Ex-Japan
-35.2%
MSCI Japan -29.3%
S&P 500 -22.1%
S&P 500 28.7%
S&P 500 10.9%
S&P 500 4.9%
MSCI Japan 6.3%
MSCI Japan -4.1%
MSCI EME
-53.2%
MSCI Japan 6.3%
MSCI Europe Ex-UK 3.7%
MSCI Europe Ex-UK 1.6%
Source: MSCI Inc., Standard & Poor's, FactSet, J.P. Morgan Asset Management.
All data are reported in USD and represent total return including the reinvestment of dividends. Past performance are not indicative of future returns. International investing involves a greater degree of risk and volatility. Changes in currency exchange rates and political and economic climate can raise or lower returns.
Data as of 12/31/2010.
4th Quarter 2010 Market Overview
2323
International Returns: Local Currency vs. U.S. Dollars
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
4th Quarter 2010 Market Overview
2424
Index Definitions
All indexes are unmanaged and an individual can not invest directly in an index. Index returns do not include fees or expenses.
The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. This index includes a representative sample of 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 Index focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market.
The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index
The MSCI EAFE Index (Europe, Australia, Far East) is a widely recognized benchmark in the United States to measure international equity performance. It comprises 21 MSCI country indexes, representing the developed markets outside of North America.
The MSCI Emerging Markets Indexsm is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Index consists of the following 25 emerging market country indices: Argentina, Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.
The MSCI Europe Indexsm is a free float-adjusted market capitalization index designed to measure developed market equity performance in Europe. The Index consists of the following developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
The MSCI Pacific Indexsm is a free float-adjusted market capitalization index designed to measure equity market performance in the Pacific region. The Index consists of the following developed market countries: Australia, Hong Kong, Japan, New Zealand and Singapore.
The Lehman Brothers U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The Index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indexes that are calculated and reported on a regular basis.
The U.S. Treasury Index is a component of the U.S. Government Index.
The Lehman Brothers High Yield Index covers the universe of fixed rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issues in non-EMG countries are included. Original issue zeroes, step-up coupon structures, and 144-As are also included.
The Lehman Brothers Emerging Markets Index includes USD-denominated debt from emerging markets in the following regions: Americas, Europe, Middle East, Africa, and Asia.As with other fixed income benchmarks provided by Lehman Brothers, the index is rules-based, which allows for an unbiased view of the marketplace and easy replicability.
The Lehman Brother Corporate Bond Index is the Corporate component of the U.S. Credit Index.
The Lehman Brother TIPS Index consists of Inflation–Protection securities issued by the U.S. Treasury.
The NAREIT Equity REIT Index is designed to provide the most comprehensive assessment of overall industry performance, and includes all tax-qualified real estate investment trusts (REITs) that are listed on the NYSE, the American Stock Exchange or the NASDAQ National Market List.
The CSFB Equity Market Neutral Index takes both long and short positions in stocks with the aim of minimizing exposure to the systematic risk of the market (i.e., a beta of zero).
This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.
Diversified Plan Portfolio Summary
December 31, 2010
Section 2
26
Fund Performance Summary
Funds listed in Green are scheduled to be added. Funds listed in Blue are frozen to new contributionsFunds listed in Red are scheduled to be removed. Funds shaded in Yellow have been placed on the watch list.
Investment Option / Benchmark Category WeightVMRXX Vanguard Prime Money Market Instl Money Market 6.35% 0.05 0.20 0.20 1.26 2.81 2.59 N/A N/A 0.09UTIXX Federated US Treasury Cash Reserves I 0.71% 0.00 0.00 0.00 0.50 2.10 2.07 N/A N/A 0.20
ML 3 Month T-Bill 0.04 0.13 0.13 0.79 2.43 2.38Cat: Money Market 0.01 0.04 0.04 0.79 2.31 2.09 0.55
N/A Guaranteed Pooled Fund Stable Value 8.50% 0.86 3.50 3.50 4.19 4.32 4.53 N/A N/A 0.60Cat: Stable Value 0.59 2.43 2.43 3.01 3.46 4.01 0.55
VIPSX Vanguard Inflation-Protected Secs Inv Inflation Protected 0.65% -0.74 6.17 6.17 ( 46 ) 4.55 ( 53 ) 5.07 ( 46 ) 6.79 ( 45 ) -0.41 1.00 0.25Barclays US TIPS -0.65 6.31 6.31 4.97 5.33 7.02Cat: Inflation Protected Bond -0.85 6.26 6.26 4.14 4.55 6.13 0.69
VFIJX Vanguard GNMA Adm Intermediate Govt 0.27% 0.41 7.07 7.07 ( 17 ) 6.59 ( 17 ) 6.26 ( 15 ) 5.90 ( 7 ) 2.73 0.73 0.13VFITX Vanguard Interm-Term Treasury Inv 3.07% -2.82 7.35 7.35 ( 12 ) 6.14 ( 29 ) 6.29 ( 14 ) 6.07 ( 5 ) -1.54 1.65 0.25
Barclays Intermediate Govt -1.55 4.98 4.98 4.94 5.41 5.11Cat: Intermediate Govt Bond -0.88 5.75 5.75 5.46 5.33 5.07 0.80
PTRAX PIMCO Total Return Admin Intermediate Bond 4.41% -0.98 8.56 8.56 ( 31 ) 8.82 ( 7 ) 7.78 ( 5 ) 7.07 ( 5 ) 3.04 0.95 0.71VBMFX Vanguard Total Bond Market Index Inv 1.37% -1.35 6.42 6.42 5.80 5.72 5.57 -0.11 1.00 0.22
Barclays Aggregate Bond -1.30 6.54 6.54 5.90 5.80 5.84Cat: Intermediate Bond -0.77 8.02 8.02 5.82 5.40 5.56 0.81
MHYIX MainStay High Yield Corporate Bond I High Yield Bond 1.46% 2.74 12.45 12.45 ( 88 ) 6.91 ( 73 ) 6.94 ( 63 ) 8.36 ( 15 ) -0.92 0.74 0.83ML High Yield Master 3.07 15.19 15.19 10.13 8.81 8.60Cat: High Yield Bond 3.62 14.43 14.43 7.68 6.99 7.31 0.98
MADVX BlackRock Equity Dividend Instl Large Value 1.08% 9.16 13.26 13.26 ( 56 ) -2.28 ( 27 ) 5.02 ( 4 ) 5.94 ( 8 ) 0.94 0.82 0.80EHSTX Eaton Vance Large-Cap Value A 6.22% 10.13 10.05 10.05 ( 93 ) -5.50 ( 80 ) 1.97 ( 42 ) 4.15 ( 34 ) -1.82 0.90 1.03
Russell 1000 Value 10.54 15.51 15.51 -4.42 1.28 3.26Cat: Large Value 10.28 13.88 13.88 -3.55 1.67 3.49 1.09
DNVYX Davis NY Venture Y Large Blend 2.14% 10.67 12.40 12.40 ( 69 ) -3.62 ( 61 ) 1.69 ( 59 ) 2.93 ( 33 ) -0.35 1.06 0.63TIGRX TIAA-CREF Growth & Income Instl 0.85% 10.80 13.20 13.20 ( 56 ) -2.23 ( 35 ) 5.42 ( 8 ) 2.44 ( 40 ) 0.26 0.93 0.52FUSVX Fidelity Spartan 500 Index Advtg 8.71% 10.74 15.01 15.01 -2.86 2.28 1.34 0.00 1.00 0.07
S&P 500 10.76 15.06 15.06 -2.86 2.29 1.41Cat: Large Blend 10.70 13.81 13.81 -3.03 2.19 2.19 1.10
FCNTX Fidelity Contrafund Large Growth 4.23% 9.45 16.93 16.93 ( 36 ) -1.71 ( 41 ) 4.87 ( 17 ) 5.54 ( 2 ) -1.58 0.88 1.02VPMAX Vanguard PRIMECAP Adm 3.29% 11.20 12.99 12.99 ( 73 ) 0.96 ( 12 ) 5.26 ( 13 ) 4.15 ( 4 ) 1.41 0.97 0.37
Russell 1000 Growth 11.83 16.71 16.71 -0.47 3.75 0.02Cat: Large Growth 11.77 15.70 15.70 -2.23 2.96 0.69 1.14
JMCVX Perkins Mid Cap Value T Mid Value 1.22% 10.03 14.81 14.81 ( 95 ) 2.84 ( 21 ) 6.13 ( 14 ) 9.89 ( 6 ) 1.22 0.73 1.02TIMVX TIAA-CREF Mid-Cap Value Instl 0.34% 12.24 21.20 21.20 ( 61 ) -0.36 ( 70 ) 4.80 ( 35 ) N/A ( N/A ) -1.54 0.93 0.56
Russell Mid Cap Value 12.24 24.75 24.75 1.01 4.08 8.07Cat: Mid Value 12.43 22.03 22.03 1.09 4.10 7.40 1.20
VIMSX Vanguard Mid Capitalization Index Inv Mid Blend 2.03% 13.57 25.46 25.46 0.77 4.27 6.78 1.48 1.00 0.27MSCI US Mid Cap 450 13.60 25.69 25.69 0.91 4.42 N/ACat: Mid Blend 13.06 21.99 21.99 0.68 4.19 6.56 1.28
10 YearExpense
Ratio3 Month YTD 1 Year3 Year Beta3 Year 5 Year
12/31/20103 YearAlphaTicker
27
Fund Performance Summary (continued)
Funds listed in Green are scheduled to be added. Funds listed in Blue are frozen to new contributionsFunds listed in Red are scheduled to be removed. Funds shaded in Yellow have been placed on the watch list.
- 3 Yr Alpha is run against the Displayed Passive Index- 3 Yr Beta is run against the Displayed Passive Index
Investment Option / Benchmark Category Weight 3 MonthMGOYX Munder Mid-Cap Core Growth Y Mid Growth 1.38% 13.47 25.48 25.48 ( 50 ) -1.96 ( 66 ) 4.97 ( 53 ) 7.16 ( 10 ) -3.17 0.89 1.12
Russell Mid Cap Growth 14.01 26.38 26.38 0.97 4.88 3.12Cat: Mid Growth 13.81 25.00 25.00 -0.28 4.94 3.29 1.25
PSVIX Allianz NFJ Small Cap Value Instl Small Value 0.82% 12.01 25.36 25.36 ( 62 ) 4.83 ( 45 ) 7.87 ( 9 ) 12.37 ( 5 ) 2.35 0.74 0.75JSCVX Perkins Small Cap Value T 0.29% 10.19 17.87 17.87 ( 96 ) 7.99 ( 8 ) 7.82 ( 10 ) 9.59 ( 47 ) 5.24 0.77 1.06
Russell 2000 Value 15.36 24.50 24.50 2.19 3.52 8.42Cat: Small Value 15.31 26.20 26.20 4.24 4.83 9.62 1.32
LRSCX Lord Abbett Small-Cap Value A Small Blend 0.58% 15.13 26.23 26.23 ( 45 ) 4.15 ( 29 ) 8.48 ( 8 ) 11.22 ( 11 ) 1.79 0.95 1.24Russell 2000 16.25 26.85 26.85 2.22 4.47 6.33Cat: Small Blend 15.76 25.40 25.40 2.29 4.28 7.74 1.29
NAESX Vanguard Small Cap Index Inv 2.49% 15.55 27.72 27.72 3.58 5.39 7.23 0.03 1.00 0.28MSCI US Small Cap 1750 15.57 27.82 27.82 3.55 5.40 N/ACat: Small Blend 15.76 25.40 25.40 2.29 4.28 7.74 1.29
RVPIX Royce Value Plus Instl Small Growth 1.44% 14.87 20.25 20.25 ( 89 ) 0.30 ( 54 ) 4.52 ( 52 ) N/A ( N/A ) -1.78 0.94 1.06Russell 2000 Growth 17.11 29.09 29.09 2.18 5.30 3.78Cat: Small Growth 16.58 27.05 27.05 0.62 4.52 3.92 1.38
RNPEX American Funds New Perspective R4 Global 0.99% 8.92 12.73 12.73 ( 51 ) -1.25 ( 27 ) 6.00 ( 20 ) 5.98 ( 25 ) 3.22 0.94 0.81MDISX Mutual Global Discovery Z 0.78% 5.34 11.37 11.37 ( 66 ) -0.26 ( 14 ) 6.40 ( 14 ) 8.60 ( 5 ) 1.46 0.53 1.12
MSCI World 8.95 11.76 11.76 -4.85 2.43 2.31Cat: World Stock 8.92 14.28 14.28 -3.53 3.68 3.92 1.35
REREX American Funds EuroPacific Gr R4 Foreign Large Equity 2.20% 5.67 9.39 9.39 ( 61 ) -3.28 ( 17 ) 5.55 ( 15 ) 6.69 ( 13 ) 3.24 0.93 0.86BREAX BlackRock International Opp Inv A 1.05% 7.83 11.42 11.42 ( 42 ) -4.82 ( 30 ) 6.01 ( 11 ) 9.93 ( 2 ) 3.03 1.05 1.69FSIVX Fidelity Spartan Intl Idx Advtg 1.75% 6.58 7.73 7.73 -6.74 2.54 3.45 0.68 1.03 0.07
MSCI EAFE 6.61 7.75 7.75 -7.02 2.46 3.50Cat: Foreign Large Equity 7.35 10.86 10.86 -6.40 3.19 4.19 1.31
DISVX DFA Intl Small Cap Value I Foreign Small / Mid E 0.00% 12.54 18.10 18.10 ( 91 ) -1.32 ( 37 ) 4.90 ( 61 ) 13.49 ( 13 ) 0.37 0.99 0.71MSCI EAFE Small Cap 11.80 22.04 22.04 -1.72 2.81 9.45Cat: Foreign Small / Mid Equity 11.03 22.64 22.64 -2.32 5.71 8.22 1.45
DFEVX DFA Emerging Markets Value I Emerging Markets 3.54% 8.37 22.06 22.06 ( 22 ) 2.63 ( 9 ) 16.77 ( 2 ) 21.12 ( 1 ) 3.91 1.12 0.62MSCI EM 7.34 18.88 18.88 -0.32 12.78 15.89Cat: Diversified Emerging Markets 7.05 19.41 19.41 -1.74 11.16 14.99 1.56
IARIX Invesco Real Estate Institutional Real Estate 0.88% 6.06 23.27 23.27 ( 87 ) 0.90 ( 44 ) 3.75 ( 22 ) 11.89 ( 4 ) -0.42 0.86 0.86Wilshire REIT 7.87 28.60 28.60 0.18 2.42 10.47Cat: Real Estate 7.01 27.17 27.17 0.58 2.44 10.22 1.29
GHAYX Van Eck Global Hard Assets Y Natural Resources 0.09% 23.49 28.63 28.63 ( 9 ) 2.75 ( 12 ) 13.70 ( 2 ) 17.06 ( 21 ) 3.82 1.02 1.10S&P Natural Resources 21.30 23.88 23.88 -0.71 8.99 9.96Cat: Natural Resources 18.62 18.78 18.78 -3.11 9.09 13.90 1.30
3 YearAlphaTicker 1 Year 3 Year 10 Year
Expense Ratio
3 Year BetaYTD 5 Year
12/31/2010
28
Fund Performance Summary (continued)
Investment Option / Benchmark Category WeightN/A Portfolio Xpress (-30 Years) Lifecycle Funds 2.68 9.81 9.81 4.74 6.46 N/A 8.36 0.54
TRRIX T. Rowe Price Retirement Income 1.41% 4.17 10.10 10.10 ( 25 ) 3.13 ( 27 ) 5.06 ( 18 ) N/A ( N/A ) 11.41 0.59Cat: Retirement Income 2.62 9.00 9.00 2.42 3.97 3.92 1.01
N/A Portfolio Xpress (0 Years) 5.06 11.81 11.81 3.13 6.33 N/A 12.89 0.61TRRFX T. Rowe Price Retirement 2005 1.76% 4.78 11.51 11.51 ( 41 ) 2.60 ( 10 ) 5.13 ( 9 ) N/A ( N/A ) 13.43 0.61
Cat: Target Date 2000-2010 4.42 10.96 10.96 0.62 3.91 3.67 0.97N/A Portfolio Xpress (0 Years) 5.06 11.81 11.81 3.13 6.33 N/A 12.89 0.61
TRRAX T. Rowe Price Retirement 2010 2.51% 5.80 12.70 12.70 ( 12 ) 1.86 ( 21 ) 4.93 ( 14 ) N/A ( N/A ) 15.70 0.64Cat: Target Date 2000-2010 4.42 10.96 10.96 0.62 3.91 3.67 0.97
N/A Portfolio Xpress (5 Years) 4.54 11.59 11.59 3.63 6.37 N/A 11.65 0.59TRRGX T. Rowe Price Retirement 2015 5.12% 6.88 13.79 13.79 ( 2 ) 1.41 ( 16 ) 4.83 ( 4 ) N/A ( N/A ) 17.77 0.68
Cat: Target Date 2011-2015 5.66 11.54 11.54 -0.43 3.28 1.85 1.02N/A Portfolio Xpress (10 Years) 6.59 13.48 13.48 2.26 6.40 N/A 16.20 0.64
TRRBX T. Rowe Price Retirement 2020 3.96% 7.87 14.74 14.74 ( 3 ) 0.80 ( 9 ) 4.62 ( 4 ) N/A ( N/A ) 19.67 0.71Cat: Target Date 2016-2020 6.22 12.60 12.60 -0.72 3.17 2.36 1.09
N/A Portfolio Xpress (15 Years) 7.51 14.20 14.20 1.57 6.21 N/A 17.82 0.66TRRHX T. Rowe Price Retirement 2025 2.37% 8.61 15.37 15.37 ( 5 ) 0.26 ( 18 ) 4.44 ( 7 ) N/A ( N/A ) 21.23 0.74
Cat: Target Date 2021-2025 7.72 13.48 13.48 -1.19 2.94 N/A 1.05N/A Portfolio Xpress (20 Years) 8.30 14.99 14.99 0.88 6.12 N/A 19.71 0.68
TRRCX T. Rowe Price Retirement 2030 2.34% 9.36 16.01 16.01 ( 8 ) -0.14 ( 6 ) 4.32 ( 1 ) N/A ( N/A ) 22.45 0.76Cat: Target Date 2026-2030 7.88 13.68 13.68 -1.96 2.58 2.06 1.12
N/A Portfolio Xpress (25 Years) 9.07 15.53 15.53 0.21 6.05 N/A 21.29 0.71TRRJX T. Rowe Price Retirement 2035 1.85% 9.94 16.34 16.34 ( 5 ) -0.38 ( 12 ) 4.18 ( 7 ) N/A ( N/A ) 23.24 0.77
Cat: Target Date 2031-2035 9.03 14.40 14.40 -1.99 2.62 N/A 1.08N/A Portfolio Xpress (30+ Years) 9.56 15.77 15.77 -0.36 5.88 N/A 22.29 0.72
TRRDX T. Rowe Price Retirement 2040 1.30% 10.04 16.51 16.51 ( 9 ) -0.31 ( 5 ) 4.22 ( 1 ) N/A ( N/A ) 23.27 0.77Cat: Target Date 2036-2040 8.71 14.30 14.30 -2.50 2.33 1.65 1.15
N/A Portfolio Xpress (30+ Years) 9.56 15.77 15.77 -0.36 5.88 N/A 22.29 0.72TRRKX T. Rowe Price Retirement 2045 0.93% 10.02 16.44 16.44 ( 4 ) -0.31 ( 9 ) 4.22 ( 5 ) N/A ( N/A ) 23.29 0.77
Cat: Target Date 2041-2045 9.36 14.64 14.64 -2.32 2.43 N/A 1.09N/A Portfolio Xpress (30+ Years) 9.56 15.77 15.77 -0.36 5.88 N/A 22.29 0.72
TRRMX T. Rowe Price Retirement 2050 0.20% 9.93 16.41 16.41 ( 10 ) -0.35 ( 6 ) N/A ( N/A ) N/A ( N/A ) 23.27 0.77Cat: Target Date 2050+ 8.79 14.28 14.28 -2.69 1.86 N/A 1.13
N/A Portfolio Xpress (30+ Years) 9.56 15.77 15.77 -0.36 5.88 N/A 22.29 0.72TRRNX T. Rowe Price Retirement 2055 1.03% 9.98 16.41 16.41 ( 8 ) -0.38 ( 7 ) N/A ( N/A ) N/A ( N/A ) 23.27 0.77
Cat: Target Date 2050+ 8.79 14.28 14.28 -2.69 1.86 N/A 1.13
St. Dev3 Yr
Expense Ratio3 Month YTD 1 Year 3 Year 10 YearTicker 5 Year
12/31/2010
29
Portfolio Xpress vs. TRP Target Date Funds Performance ComparisonPort
folio X
pre
ss (
-30 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t In
com
e
Port
folio X
pre
ss (
0 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2005
Port
folio X
pre
ss (
0 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2010
Port
folio X
pre
ss (
5 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2015
Port
folio X
pre
ss (
10 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2020
Port
folio X
pre
ss (
15 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2025
Port
folio X
pre
ss (
20 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2030
Port
folio X
pre
ss (
25 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2035
T. R
ow
e Pri
ce R
etir
emen
t 2040
Port
folio X
pre
ss (
30+
Yea
rs)
T. R
ow
e Pri
ce R
etir
emen
t 2045
Port
folio X
pre
ss (
30+
Yea
rs)
T. R
ow
e Pri
ce R
etir
emen
t 2050
Port
folio X
pre
ss (
30+
Yea
rs)
T. R
ow
e Pri
ce R
etir
emen
t 2055
Port
folio X
pre
ss (
30+
Yea
rs)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
1 Year
Port
folio X
pre
ss (
-30 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t In
com
e
Port
folio X
pre
ss (
0 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2005
Port
folio X
pre
ss (
0 Y
ears
)
Port
folio X
pre
ss (
5 Y
ears
)
Port
folio X
pre
ss (
10 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2010
T. R
ow
e Pri
ce R
etir
emen
t 2015
T. R
ow
e Pri
ce R
etir
emen
t 2020
Port
folio X
pre
ss (
15 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2025
Port
folio X
pre
ss (
20 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2030
Port
folio X
pre
ss (
25 Y
ears
)
T. R
ow
e Pri
ce R
etir
emen
t 2035
Port
folio X
pre
ss (
30+
Yea
rs)
T. R
ow
e Pri
ce R
etir
emen
t 2040
Port
folio X
pre
ss (
30+
Yea
rs)
T. R
ow
e Pri
ce R
etir
emen
t 2045
Port
folio X
pre
ss (
30+
Yea
rs)
T. R
ow
e Pri
ce R
etir
emen
t 2050
Port
folio X
pre
ss (
30+
Yea
rs)
T. R
ow
e Pri
ce R
etir
emen
t 2055
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
3 Year
Por
tfol
io X
pres
s (-
30 Y
ears
)
T. R
owe
Pri
ce R
etir
emen
t In
com
e
Por
tfol
io X
pres
s (0
Yea
rs)
T. R
owe
Pri
ce R
etir
emen
t 2005
Por
tfol
io X
pres
s (0
Yea
rs)
T. R
owe
Pri
ce R
etir
emen
t 2010
Por
tfol
io X
pres
s (5
Yea
rs)
T. R
owe
Pri
ce R
etir
emen
t 2015
Por
tfol
io X
pres
s (1
0 Y
ears
)
T. R
owe
Pri
ce R
etir
emen
t 2020
Por
tfol
io X
pres
s (1
5 Y
ears
)
T. R
owe
Pri
ce R
etir
emen
t 2025
Por
tfol
io X
pres
s (2
0 Y
ears
)
T. R
owe
Pri
ce R
etir
emen
t 2030
Por
tfol
io X
pres
s (2
5 Y
ears
)
T. R
owe
Pri
ce R
etir
emen
t 2035
T. R
owe
Pri
ce R
etir
emen
t 2040
Por
tfol
io X
pres
s (3
0+
Yea
rs)
T. R
owe
Pri
ce R
etir
emen
t 2045
Por
tfol
io X
pres
s (3
0+
Yea
rs)
T. R
owe
Pri
ce R
etir
emen
t 2050
Por
tfol
io X
pres
s (3
0+
Yea
rs)
T. R
owe
Pri
ce R
etir
emen
t 2055
Por
tfol
io X
pres
s (3
0+
Yea
rs)
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
5 Year
30
T. Rowe Price Retirement Funds - Qualitative Analysis
T. Rowe Price Retirement Funds Asset Allocation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2055
2050
2045
2040
2035
2030
2025
2020
2015
2010
2005
Incom
e
International Equity Domestic Equity Fixed Income
T. Rowe Price Retirement FundsProvide Asset Allocation/Target Date Services Since 2002
Method of Investment Fund of FundsInvestment Strategy Active# of Underlying Funds 17# of Underlying Funds closed to new investments 0
# of Funds Avaliable 12Holdings Subadvised or Cloned NOGlide Path StaticTactical Strategies YesRebalance Trigger 5%Glide Path Extension 30 yearsNet Assets $54 billionAlternative Asset Classes Emerging Markets/ World Bond / Emerging Markets Bond
31
Portfolio Xpress Allocation (Underlying Holdings)
Foreign Equity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
40 35 30 25 20 15 10 5 0 Income
Years Until Retirement
Domestic Equity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
40 35 30 25 20 15 10 5 0 Income
Years Until Retirement
Fixed Income
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
40 35 30 25 20 15 10 5 0 Income
Years Until Retirement
Portfolio Xpress
T. Row e Price
Wells Fargo (Conservative Target Date)
MSTAR Category
32
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis Summary
Investment Name 4Q10 3Q10 2Q10 1Q10Inflation Protected
Vanguard Inflation-Protected Secs 11 12 10 12
Intermediate GovernmentVanguard GNMA Adm 0 3 0 0Vanguard Interm-Term Treasury 6 4 6 7
Intermediate BondPIMCO Total Return Admin 2 1 2 1
High Yield BondMainStay High Yield Corporate Bond I 24 24 20 26
Large ValueBlackRock Equity Dividend I 1 1 1 1
Eaton Vance Large-Cap Value A 36 26 17 11
Large BlendDavis NY Venture Y 20 13 12 12TIAA-CREF Growth & Income Instl 16 15 13 11
Large GrowthFidelity Contrafund 10 5 4 7
Vanguard PRIMECAP Adm 0 0 0 0
Mid Cap ValuePerkins Mid Cap Value T 16 14 7 8TIAA-CREF Mid-Cap Value Instl 12 10 11 11
Mid Cap GrowthMunder Mid-Cap Core Growth Y 22 20 20 18
Quarterly Ranking
33
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis Summary (Continued)
Investment Name 4Q10 3Q10 2Q10 1Q10Small Cap Value
Allianz NFJ Small Cap Value Instl 1 0 0 0Perkins Small Cap Value T 40 31 26 27
Small Cap BlendLord Abbett Small-Cap Value A 2 2 1 1
Small Cap GrowthRoyce Value Plus Instl 27 20 8 13
GlobalAmerican Funds New Perspective R4 4 4 5 4Mutual Global Discovery Z 20 13 15 13
Foreign Large EquityAmerican Funds EuroPacific Gr R4 3 3 2 4BlackRock International Opp A 19 23 23 25
Foreign Small / Mid EquityDFA Intl Small Cap Value I 3 6 4 12
Emerging MarketsDFA Emerging Markets Value I 1 0 1 1
Real EstateInvesco Real Estate Inst 9 6 5 6
Natural ResourcesVan Eck Global Hard Assets Y 3 5 1 2
Average Rank 12 11 10 10
Plan Weighted Rank (Reweighted) 13 10 9 9
Quarterly Ranking
34
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Returns (40%)
Investment Name 3 Yr 5 Yr 10 Yr
Inflation ProtectedVanguard Inflation-Protected Secs Inv 53 46 45 48 12 30
Intermediate GovernmentVanguard GNMA Adm 17 15 7 13 1 7Vanguard Interm-Term Treasury Inv 29 14 5 16 14 15
Intermediate BondPIMCO Total Return Admin 7 5 6 6 5 5
High Yield BondMainStay High Yield Corporate Bond I 73 63 15 50 17 33
Large ValueBlackRock Equity Dividend Instl 27 4 8 13 4 8Eaton Vance Large-Cap Value A 80 42 34 52 31 41
Large BlendDavis NY Venture Y 61 59 33 51 19 35TIAA-CREF Growth & Income Instl 35 8 40 28 42 35
Large GrowthFidelity Contrafund 41 17 2 20 1 10Vanguard PRIMECAP Adm 12 13 4 10 4 7
Mid Cap ValuePerkins Mid Cap Value T 21 14 6 14 24 19TIAA-CREF Mid-Cap Value Instl 70 35 N/A 53 1 27
Mid Cap GrowthMunder Mid-Cap Core Growth Y 66 53 10 43 8 26
ReturnsA vg R anking R anking Score
Rolling ReturnsTrailing Returns
35
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Returns (40%) (Continued)
Investment Name 3 Yr 5 Yr 10 Yr
Small Cap ValueAllianz NFJ Small Cap Value Instl 45 9 5 20 1 10Perkins Small Cap Value T 8 10 47 22 73 47
Small Cap BlendLord Abbett Small-Cap Value A 29 8 11 16 4 10
Small Cap GrowthRoyce Value Plus Instl 54 52 N/A 53 2 28
GlobalAmerican Funds New Perspective R4 27 20 25 24 30 27Mutual Global Discovery Z 14 14 5 11 15 13
Foreign Large EquityAmerican Funds EuroPacific Gr R4 17 15 13 15 15 15BlackRock International Opp Inv A 31 11 2 15 1 8
Foreign Small/Mid EquityDFA Intl Small Cap Value I 37 61 13 37 14 25
Emerging MarketsDFA Emerging Markets Value I 9 2 1 4 1 2
Real EstateInvesco Real Estate Institutional 44 22 4 23 1 12
Natural ResourcesVan Eck Global Hard Assets Y 12 2 21 12 4 8
Average Rank 35 24 15 26 13 19
Trailing Returns Rolling Returns ReturnsA vg R anking R anking Score
36
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Risk (30%)
Investment Name 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr 10 Yr
Inflation ProtectedVanguard Inflation-Protected Secs Inv 54 44 28 42 49 35 45 43 49 39 39 42 42
Intermediate GovernmentVanguard GNMA Adm 16 7 7 10 40 40 49 43 38 35 33 35 29Vanguard Interm-Term Treasury Inv 84 74 64 74 2 2 2 2 99 99 98 99 58
Intermediate BondPIMCO Total Return Admin 5 4 4 4 20 13 11 15 14 27 35 25 15
High Yield BondMainStay High Yield Corporate Bond I 56 37 10 34 85 85 44 71 18 7 27 17 41
Large ValueBlackRock Equity Dividend Instl 40 4 6 17 86 78 84 83 12 7 7 9 36Eaton Vance Large-Cap Value A 83 45 33 54 79 65 60 68 40 35 26 34 52
Large BlendDavis NY Venture Y 54 59 33 49 32 39 45 39 72 64 37 58 48TIAA-CREF Growth & Income Instl 42 8 41 30 77 36 51 55 21 17 39 26 37
Large GrowthFidelity Contrafund 54 16 2 24 90 82 95 89 8 4 2 5 39Vanguard PRIMECAP Adm 13 12 4 10 46 59 24 43 16 10 26 17 23
Mid Cap ValuePerkins Mid Cap Value T 23 9 5 12 94 95 86 92 5 4 7 5 36TIAA-CREF Mid-Cap Value Instl 72 35 N/A 54 56 31 N/A 44 59 53 N/A 56 51
Mid Cap GrowthMunder Mid-Cap Core Growth Y 72 53 10 45 76 68 78 74 37 34 10 27 49
Risk-AdjustedR anking Score
Sharpe Ratio Up Capture RatioR anking
Down Capture RatioR anking
37
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Risk (30%) (Continued)
Investment Name 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr 10 Yr
Small Cap ValueAllianz NFJ Small Cap Value Instl 43 7 3 18 94 82 94 90 8 8 2 6 38Perkins Small Cap Value T 5 9 37 17 88 91 89 89 5 4 14 8 38
Small Cap BlendLord Abbett Small-Cap Value A 29 9 12 17 32 18 30 27 48 27 20 32 25
Small Cap GrowthRoyce Value Plus Instl 53 51 N/A 52 57 54 N/A 56 45 42 N/A 44 50
GlobalAmerican Funds New Perspective R4 32 19 23 25 60 51 38 50 22 22 32 25 33Mutual Global Discovery Z 37 4 1 14 98 98 97 98 1 1 1 1 38
Foreign Large EquityAmerican Funds EuroPacific Gr R4 21 15 12 16 60 60 50 57 13 11 13 12 28BlackRock International Opp Inv A 25 12 2 13 21 6 3 10 49 69 30 49 24
Foreign Small/Mid EquityDFA Intl Small Cap Value I 40 64 9 38 33 62 22 39 52 46 8 35 37
Emerging MarketsDFA Emerging Markets Value I 8 3 3 5 3 2 2 2 64 45 35 48 18
Real EstateInvesco Real Estate Institutional 55 30 3 29 83 79 75 79 18 12 5 12 40
Natural ResourcesVan Eck Global Hard Assets Y 12 2 3 6 24 22 24 23 32 19 33 28 19
Average Rank 40 24 15 27 57 52 50 53 33 29 24 29 36
R anking R anking R anking ScoreSharpe Ratio Up Capture Ratio Down Capture Ratio Risk-Adjusted
38
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Style (15%)
Investment Name 3 Yr 5 Yr 10 Yr
Inflation ProtectedVanguard Inflation-Protected Secs Inv 1 2 6 3 N/A N/A N/A 3
Intermediate GovernmentVanguard GNMA Adm 47 45 51 48 N/A N/A N/A 48
Vanguard Interm-Term Treasury Inv 5 5 2 4 N/A N/A N/A 4
Intermediate BondPIMCO Total Return Admin 37 33 32 34 28 N/A N/A 31
High Yield BondMainStay High Yield Corporate Bond I 33 38 60 44 49 N/A N/A 46
Large ValueBlackRock Equity Dividend Instl 74 80 84 79 N/A 1 45 42Eaton Vance Large-Cap Value A 57 56 41 51 N/A 16 17 28
Large BlendDavis NY Venture Y 43 41 48 44 N/A 34 25 34
TIAA-CREF Growth & Income Instl 27 35 17 26 N/A 24 81 44
Large GrowthFidelity Contrafund 52 71 96 73 N/A 8 69 50
Vanguard PRIMECAP Adm 43 39 49 44 N/A 4 52 33
Mid Cap ValuePerkins Mid Cap Value T 46 40 77 54 N/A 62 82 66
TIAA-CREF Mid-Cap Value Instl 8 10 N/A 9 N/A 26 72 36
Mid Cap GrowthMunder Mid-Cap Core Growth Y 14 30 73 39 N/A 11 63 38
StyleA vg R anking R anking R anking R anking Score
Bond Quality Consistency DispersionR2
39
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Style (15%) (Continued)
Investment Name 3 Yr 5 Yr 10 Yr
Small Cap ValueAllianz NFJ Small Cap Value Instl 80 79 72 77 N/A 27 3 36
Perkins Small Cap Value T 61 60 66 62 N/A 81 71 71
Small Cap BlendLord Abbett Small-Cap Value A 18 30 41 30 N/A 6 14 17
Small Cap GrowthRoyce Value Plus Instl 47 57 N/A 52 N/A 61 74 62
GlobalAmerican Funds New Perspective R4 22 31 12 22 N/A N/A N/A 22
Mutual Global Discovery Z 89 89 92 90 N/A N/A N/A 90
Foreign Large EquityAmerican Funds EuroPacific Gr R4 53 54 47 51 N/A N/A N/A 51
BlackRock International Opp Inv A 68 78 90 79 N/A N/A N/A 79
Foreign Large / Mid EquityDFA Intl Small Cap Value I 11 3 3 6 N/A N/A N/A 6
Emerging MarketsDFA Emerging Markets Value I 60 75 89 75 N/A N/A N/A 75
Emerging MarketsInvesco Real Estate Institutional 44 47 59 50 N/A N/A N/A 50
Natural ResourcesVan Eck Global Hard Assets Y 43 40 53 45 N/A N/A N/A 45
Average Rank 42 45 53 46 39 28 51 43
StyleA vg R anking R anking R anking R anking Score
R2 Bond Quality Consistency Dispersion
40
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Expense (15%)
Investment NameInflation Protected
Vanguard Inflation-Protected Secs Inv 4
Intermediate GovernmentVanguard GNMA Adm 2
Vanguard Interm-Term Treasury Inv 3
Intermediate BondPIMCO Total Return Admin 44
High Yield BondMainStay High Yield Corporate Bond I 37
Large ValueBlackRock Equity Dividend Instl 20
Eaton Vance Large-Cap Value A 48
Large BlendDavis NY Venture Y 11TIAA-CREF Growth & Income Instl 7
Large GrowthFidelity Contrafund 43Vanguard PRIMECAP Adm 1
Mid Cap ValuePerkins Mid Cap Value T 34
TIAA-CREF Mid-Cap Value Instl 2
Mid Cap GrowthMunder Mid-Cap Core Growth Y 40
RankingExpense
41
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Expense (15%) (Continued)
Investment NameSmall Cap Value
Allianz NFJ Small Cap Value Instl 3Perkins Small Cap Value T 21
Small Cap BlendLord Abbett Small-Cap Value A 46
Small Cap GrowthRoyce Value Plus Instl 21
GlobalAmerican Funds New Perspective R4 8Mutual Global Discovery Z 28
Foreign Large EquityAmerican Funds EuroPacific Gr R4 11BlackRock International Opp Inv A 86
Foreign Small/Mid EquityDFA Intl Small Cap Value I 2
Emerging MarketsDFA Emerging Markets Value I 1
Real EstateInvesco Real Estate Institutional 13
Natural ResourcesVan Eck Global Hard Assets Y 32
Average Rank 22
ExpenseRanking
42
Quantitative Analysis Overview
75%Outperform Perform Underperform
0% 25% 50% 100%
EXP EN SE - 15%
Inflation ProtectedVanguard Inflation-Protected Secs Inv 48 12 42 43 42 3 N/A N/A N/A 4 26 11
Intermediate GovernmentVanguard GNMA Adm 13 1 10 43 35 48 N/A N/A N/A 2 19 0
Vanguard Interm-Term Treasury Inv 16 14 74 2 99 4 N/A N/A N/A 3 25 6
Intermediate BondPIMCO Total Return Admin 6 5 4 15 25 34 28 N/A N/A 44 18 2
High Yield BondMainStay High Yield Corporate Bond I 50 17 34 71 17 44 49 N/A N/A 37 38 24
Large ValueBlackRock Equity Dividend Instl 13 4 17 83 9 79 N/A 1 45 20 23 1
Eaton Vance Large-Cap Value A 52 31 54 68 34 51 N/A 16 17 48 44 36
Large BlendDavis NY Venture Y 51 19 49 39 58 44 N/A 34 25 11 35 20
TIAA-CREF Growth & Income Instl 28 42 30 55 26 26 N/A 24 81 7 33 16
Large GrowthFidelity Contrafund 20 1 24 89 5 73 N/A 8 69 43 30 10
Vanguard PRIMECAP Adm 10 4 10 43 17 44 N/A 4 52 1 15 0
Mid Cap Value
Perkins Mid Cap Value T 14 24 12 92 5 54 N/A 62 82 34 34 16
TIAA-CREF Mid-Cap Value Instl 53 1 54 44 56 9 N/A 26 72 2 32 12
Mid Cap GrowthMunder Mid-Cap Core Growth Y 43 8 45 74 27 39 N/A 11 63 40 36 22
Sharpe Ratio
Up Capture
FUND SCORERETURNS - 40% RISK - 30% STYLE - 15%
%Rank
Prosp Net Ratio
(Equity)Cons.
Total Score
(Equity)Disp.Fund Name R2
Down Capture
(Bond)QualityTrailing Rolling
43
Quantitative Analysis Overview (Continued)
75%Outperform Perform Underperform
0% 25% 50% 100%
EXP EN SE - 15%
Small Cap ValueAllianz NFJ Small Cap Value Instl 20 1 18 90 6 77 N/A 27 3 3 21 1
Perkins Small Cap Value T 22 73 17 89 8 62 N/A 81 71 21 44 40
Small Cap BlendLord Abbett Small-Cap Value A 16 4 17 27 32 30 N/A 6 14 46 21 2
Small Cap Growth
Royce Value Plus Instl 53 2 52 56 44 52 N/A 61 74 21 39 27
GlobalAmerican Funds New Perspective R4 24 30 25 50 25 22 N/A N/A N/A 8 25 4
Mutual Global Discovery Z 11 15 14 98 1 90 N/A N/A N/A 28 34 20
Foreign Large Equity
American Funds EuroPacific Gr R4 15 15 16 57 12 51 N/A N/A N/A 11 24 3
BlackRock International Opp Inv A 15 1 13 10 49 79 N/A N/A N/A 86 35 19
Foreign Small / Mid EquityDFA Intl Small Cap Value I 37 14 38 39 35 6 N/A N/A N/A 2 23 3
Emerging Markets
DFA Emerging Markets Value I 4 1 5 2 48 75 N/A N/A N/A 1 18 1
Real EstateInvesco Real Estate Institutional 23 1 29 79 12 50 N/A N/A N/A 13 26 9
Natural ResourcesVan Eck Global Hard Assets Y 12 4 6 23 28 45 N/A N/A N/A 32 20 3
Average Rank 26 13 27 53 29 46 39 28 51 22 28 12
Plan Weighted Rank 25 12 29 49 31 49 5 11 25 26 29 13
RETURNS - 40% RISK - 30% STYLE - 15% FUND SCORE
Fund Name Trailing RollingSharpe Ratio
Up Capture
Down Capture R2
(Bond)Quality
Total Score
%Rank
(Equity)Cons.
(Equity)Disp.
Prosp Net Ratio
44
Correlation Matrix.70 to 1.0 Highly Positive
0.00 to -.69 Moderate Negative0.01 to .69 Moderate Positive
-.70 to -1.0 Highly Negative
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Vanguard Prime Money Market Instl 91% 72% -5% 7% 20% -5% -1% -44% -43% -40% -43% -44% -45% -50% -39% -37% -42% -44% -48% -38% -35% -38% -40% -41% -42% -47% -40% -38% -36% -36% -40% -30% -31%
Federated US Treasury Cash Reserves I 91% 58% -3% 0% 17% -12% -7% -39% -32% -28% -31% -35% -33% -41% -29% -26% -31% -35% -39% -24% -23% -26% -28% -31% -36% -43% -36% -32% -32% -32% -38% -15% -26%
Guaranteed Pooled Fund Pepperdine 72% 58% -6% -1% 2% -3% -3% -18% -22% -20% -20% -22% -22% -25% -17% -17% -22% -24% -28% -21% -13% -20% -20% -20% -20% -25% -17% -17% -17% -19% -16% -14% -20%
Vanguard Inflation-Protected Secs Inv -5% -3% -6% 56% 57% 66% 72% 50% 35% 36% 32% 33% 34% 36% 37% 39% 34% 36% 38% 33% 24% 25% 28% 34% 40% 26% 41% 38% 45% 39% 46% 32% 41%
Vanguard GNMA Adm 7% 0% -1% 56% 87% 56% 88% 0% -1% 2% -2% -3% -1% -7% -8% 3% -5% -4% -3% -3% -3% -12% -9% -10% 2% -6% 6% 5% 9% 3% 8% 0% -6%
Vanguard Interm-Term Treasury Inv 20% 17% 2% 57% 87% 52% 84% -23% -13% -11% -16% -17% -14% -19% -18% -11% -18% -18% -17% -15% -15% -22% -20% -24% -11% -26% -8% -7% -4% -10% -7% -8% -21%
PIMCO Total Return Admin -5% -12% -3% 66% 56% 52% 80% 43% 36% 36% 36% 33% 35% 30% 32% 39% 36% 35% 34% 33% 28% 22% 28% 28% 43% 32% 46% 47% 49% 48% 48% 34% 28%
Vanguard Total Bond Market Index Inv -1% -7% -3% 72% 88% 84% 80% 24% 17% 20% 16% 15% 17% 13% 11% 22% 15% 16% 18% 17% 13% 6% 10% 10% 23% 11% 28% 28% 32% 26% 31% 20% 11%
MainStay High Yield Corporate Bond A -44% -39% -18% 50% 0% -23% 43% 24% 71% 69% 74% 73% 73% 75% 74% 76% 79% 79% 81% 74% 68% 70% 74% 79% 77% 77% 76% 73% 75% 75% 80% 71% 68%
BlackRock Equity Dividend Inv A -43% -32% -22% 35% -1% -13% 36% 17% 71% 99% 97% 98% 98% 96% 97% 94% 96% 94% 94% 95% 88% 91% 92% 90% 97% 91% 94% 95% 93% 92% 91% 81% 81%
Eaton Vance Large-Cap Value A -40% -28% -20% 36% 2% -11% 36% 20% 69% 99% 97% 98% 98% 95% 96% 96% 96% 95% 94% 96% 89% 92% 93% 90% 96% 90% 92% 94% 91% 91% 88% 82% 79%
Davis NY Venture Y -43% -31% -20% 32% -2% -16% 36% 16% 74% 97% 97% 97% 99% 94% 96% 97% 98% 96% 95% 97% 94% 93% 95% 93% 95% 88% 91% 92% 90% 91% 90% 86% 76%
TIAA-CREF Growth & Income Instl -44% -35% -22% 33% -3% -17% 33% 15% 73% 98% 98% 97% 99% 97% 98% 96% 98% 97% 96% 96% 91% 95% 95% 94% 96% 92% 93% 93% 91% 91% 89% 82% 79%
Fidelity Spartan 500 Index -45% -33% -22% 34% -1% -14% 35% 17% 73% 98% 98% 99% 99% 96% 98% 97% 98% 97% 96% 97% 93% 95% 96% 93% 96% 91% 92% 93% 90% 91% 89% 84% 76%
Fidelity Contrafund -50% -41% -25% 36% -7% -19% 30% 13% 75% 96% 95% 94% 97% 96% 96% 93% 94% 96% 97% 93% 84% 91% 92% 93% 96% 92% 93% 92% 92% 89% 91% 76% 86%
Vanguard PRIMECAP Adm -39% -29% -17% 37% -8% -18% 32% 11% 74% 97% 96% 96% 98% 98% 96% 95% 97% 97% 95% 95% 89% 94% 95% 94% 96% 89% 91% 92% 90% 88% 89% 82% 80%
Perkins Mid Cap Value T -37% -26% -17% 39% 3% -11% 39% 22% 76% 94% 96% 97% 96% 97% 93% 95% 98% 98% 97% 98% 95% 96% 97% 97% 95% 89% 91% 91% 90% 92% 90% 86% 77%
TIAA-CREF Mid-Cap Value Instl -42% -31% -22% 34% -5% -18% 36% 15% 79% 96% 96% 98% 98% 98% 94% 97% 98% 99% 98% 98% 94% 97% 98% 97% 95% 90% 91% 91% 90% 91% 89% 88% 78%
Vanguard Mid Capitalization Index Inv -44% -35% -24% 36% -4% -18% 35% 16% 79% 94% 95% 96% 97% 97% 96% 97% 98% 99% 99% 98% 92% 97% 98% 97% 95% 90% 90% 91% 90% 91% 89% 85% 81%
Munder Mid-Cap Core Growth A -48% -39% -28% 38% -3% -17% 34% 18% 81% 94% 94% 95% 96% 96% 97% 95% 97% 98% 99% 96% 89% 95% 96% 97% 94% 91% 90% 90% 90% 90% 89% 81% 83%
Allianz NFJ Small Cap Value Instl -38% -24% -21% 33% -3% -15% 33% 17% 74% 95% 96% 97% 96% 97% 93% 95% 98% 98% 98% 96% 96% 97% 98% 96% 93% 87% 89% 90% 88% 90% 87% 89% 76%
Perkins Small Cap Value T -35% -23% -13% 24% -3% -15% 28% 13% 68% 88% 89% 94% 91% 93% 84% 89% 95% 94% 92% 89% 96% 96% 97% 92% 86% 81% 82% 84% 80% 84% 81% 89% 60%
Lord Abbett Small-Cap Value A -38% -26% -20% 25% -12% -22% 22% 6% 70% 91% 92% 93% 95% 95% 91% 94% 96% 97% 97% 95% 97% 96% 99% 97% 91% 86% 86% 86% 84% 87% 83% 87% 71%
Vanguard Small Cap Index Inv -40% -28% -20% 28% -9% -20% 28% 10% 74% 92% 93% 95% 95% 96% 92% 95% 97% 98% 98% 96% 98% 97% 99% 97% 91% 86% 86% 88% 85% 88% 85% 89% 71%
Royce Value Plus Instl -41% -31% -20% 34% -10% -24% 28% 10% 79% 90% 90% 93% 94% 93% 93% 94% 97% 97% 97% 97% 96% 92% 97% 97% 92% 87% 88% 87% 88% 89% 89% 83% 80%
American Funds New Perspective R4 -42% -36% -20% 40% 2% -11% 43% 23% 77% 97% 96% 95% 96% 96% 96% 96% 95% 95% 95% 94% 93% 86% 91% 91% 92% 93% 99% 98% 97% 95% 96% 81% 82%
Mutual Global Discovery Z -47% -43% -25% 26% -6% -26% 32% 11% 77% 91% 90% 88% 92% 91% 92% 89% 89% 90% 90% 91% 87% 81% 86% 86% 87% 93% 92% 91% 89% 91% 88% 70% 77%
American Funds EuroPacific Gr R4 -40% -36% -17% 41% 6% -8% 46% 28% 76% 94% 92% 91% 93% 92% 93% 91% 91% 91% 90% 90% 89% 82% 86% 86% 88% 99% 92% 99% 99% 96% 97% 77% 81%
Fidelity Spartan International Index Inv -38% -32% -17% 38% 5% -7% 47% 28% 73% 95% 94% 92% 93% 93% 92% 92% 91% 91% 91% 90% 90% 84% 86% 88% 87% 98% 91% 99% 98% 97% 96% 80% 78%
BlackRock International Opp Inv -36% -32% -17% 45% 9% -4% 49% 32% 75% 93% 91% 90% 91% 90% 92% 90% 90% 90% 90% 90% 88% 80% 84% 85% 88% 97% 89% 99% 98% 96% 97% 75% 86%
DFA Intl Small Cap Value I -36% -32% -19% 39% 3% -10% 48% 26% 75% 92% 91% 91% 91% 91% 89% 88% 92% 91% 91% 90% 90% 84% 87% 88% 89% 95% 91% 96% 97% 96% 93% 79% 79%
DFA Emerging Markets Value I -40% -38% -16% 46% 8% -7% 48% 31% 80% 91% 88% 90% 89% 89% 91% 89% 90% 89% 89% 89% 87% 81% 83% 85% 89% 96% 88% 97% 96% 97% 93% 76% 81%
Invesco Real Estate Institutional -30% -15% -14% 32% 0% -8% 34% 20% 71% 81% 82% 86% 82% 84% 76% 82% 86% 88% 85% 81% 89% 89% 87% 89% 83% 81% 70% 77% 80% 75% 79% 76% 52%
Van Eck Global Hard Assets I -31% -26% -20% 41% -6% -21% 28% 11% 68% 81% 79% 76% 79% 76% 86% 80% 77% 78% 81% 83% 76% 60% 71% 71% 80% 82% 77% 81% 78% 86% 79% 81% 52%
45
Overlap Analysis
0 - 30% 31 - 50% 51% and above
Eat
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Eaton Vance Large Cap Value -- 12 34 0 0 0 10 0 18 2 1 13 36 31 5 2
Fidelity Contrafund 12 -- 10 0 4 0 5 0 10 5 10 16 24 23 4 2
BlackRock Equity Dividend 34 10 -- 0 1 0 8 1 15 1 3 9 40 36 8 0
Allianz NFJ Small Cap Value 0 0 0 -- 7 6 5 11 0 2 4 0 0 1 4 3
Vanguard Small-Cap Index 0 4 1 7 -- 8 4 6 0 4 0 1 0 3 6 4
Lord Abbett Small Cap Value 0 0 0 6 8 -- 5 8 0 4 2 0 0 1 3 6
Perkins Mid Cap Value 10 5 8 5 4 5 -- 22 5 4 10 9 14 9 15 4
Perkins Small Cap Value 0 0 1 11 6 8 22 -- 0 2 3 0 0 0 4 4
Davis New York Venture Fund 18 10 15 0 0 0 5 0 -- 1 2 11 20 15 1 0
Munder Mid Cap Core Growth 2 5 1 2 4 4 4 2 1 -- 10 0 2 5 8 3
Vanguard Mid-Cap Index 1 10 3 4 0 2 10 3 2 10 -- 3 10 9 24 3
Vanguard PRIMECAP Fund 13 16 9 0 1 0 9 0 11 0 3 -- 20 17 4 0
Fidelity Spartan US Eq Index 36 24 40 0 0 0 14 0 20 2 10 20 -- 48 12 1
TIAA-CREF Growth & Inc 31 23 36 1 3 1 9 0 15 5 9 17 48 -- 14 0
TIAA-CREF Mid-Cap Val 5 4 8 4 6 3 15 4 1 8 24 4 12 14 -- 2
Royce Value Plus 2 2 0 3 4 6 4 4 0 3 3 0 1 0 2 --
46
Range of InvestmentsLower risk/lower potential reward Higher risk/higher potential reward
BALANCEDCAPITAL
PRESERVATION INCOME HYBRID VALUE BLEND GROWTH
LARGE VALUE- BlackRock Equity Dividend- Eaton Vance Large Cap Value
LARGE BLEND- Davis NY Venture- TIAA-CREF Instl Grth and Income- Fidelity Spartan US Equity Idx
LARGE GROWTH- Fidelity Contrafund- Vanguard PRIMECAP
MID CAP VALUE- Perkins Mid Cap Value- TIAA-CREF Instl Mid Cap Value
MID CAP BLEND- Vanguard Mid Cap Index
MID CAP GROWTH- Munder Mid-Cap Core Growth
SMALL CAP VALUE- Allianz NFJ Small Cap Value Inst- Perkins Small Cap Value
SMALL CAP BLEND- Lord Abbett Small Cap Value- Vanguard Small Cap Index
SMALL CAP GROWTH- Royce Value Plus
SPEC
IALT
Y REAL ESTATE- AIM Real EstateNATURAL RESOURCES- Van Eck Hard Assets
WORLD STOCK- American Funds New Perspective- Mutual Discovery
FOREIGN LARGE CAP- American Funds EuroPacific Growth- Fidelity Spartan International Index-BlackRock International Opportunities
FOREIGN SM/MID CAP- DFA Intl Small Cap Value
EMERGING MARKETS- DFA Emerging Markets Value
Funds listed in Green are scheduled to be added
EQUITYFIXED INCOME
DO
MES
TIC
FOR
EIG
N
FIXED- Vanguard PRIME MMkt- Federated Gov Reserve- Guaranteed Pooled
INFLATION PROTECTED- Vanguard Inflation Protected Sec
INTERMEDIATE GOVERNMENT- Vanguard Int Term Treasury- Vanguard GNMA
INTERMEDIATE CORPORATE- PIMCO Total Return- Vanguard Total Bond Market Index
HIGH YIELD BOND- MainStay High Yield Bond
47
Holdings-Based Style Analysis3 Year Style Trail
Deep-Value Core-Value Core Core-Growth High-Growth
Mic
r oS
mal
lM
i dLa
r ge
Gi a
n t
Royce Value Plus Instl 3/2008 9/2010
Investment Name Start Date End DateBlackRock Equity Dividend Inv A 1/2008 10/2010
Eaton Vance Large-Cap Value A 3/2008 12/2010
Davis NY Venture Y 1/2008 10/2010
TIAA-CREF Growth & Income Instl 3/2008 12/2010
Fidelity Spartan 500 Index Inv 1/2008 12/2010
Fidelity Contrafund 1/2008 12/2010
Vanguard PRIMECAP Adm 3/2008 12/2010
Perkins Mid Cap Value T 6/2008 12/2010
TIAA-CREF Mid-Cap Value Instl 3/2008 12/2010
Vanguard Mid Capitalization Ind... 3/2008 12/2010
Munder Mid-Cap Core Growth A 1/2008 12/2010
Allianz NFJ Small Cap Value Instl 1/2008 12/2010
Perkins Small Cap Value T 3/2008 12/2010
Lord Abbett Small-Cap Value A 1/2008 12/2010
48
Portfolio Analysis
Portfolio Composition
Sector Weightings
Non-US Stocks, 15.93%
Cash, 16.63%
US Stocks, 48.44%
Bonds, 17.70%
Other, 1.30%
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter S&P 500 IndexEnergy 10.44% 9.27% 9.58% 10.74% 13.13%Materials 6.93% 6.97% 6.79% 7.40% 3.62%Industrials 10.89% 10.87% 11.44% 11.56% 11.10%Consumer Discretionary 11.30% 11.26% 12.14% 11.70% 10.55%Consumer Staples 7.73% 8.35% 8.09% 7.66% 10.12%Healthcare 10.60% 10.89% 10.14% 9.73% 10.66%Financials 21.12% 21.12% 19.57% 19.79% 16.04%Information Technology 15.53% 15.49% 16.13% 15.79% 18.70%Telecom Services 2.43% 2.53% 3.00% 2.69% 2.89%Utilities 3.02% 3.25% 3.13% 2.94% 3.18%
49
Portfolio Return vs. Custom Benchmark
Annualized Returns Benchmark WeightingsFund Name Category (Active) Index (Passive) WeightVanguard Prime Money Market Instl Money Market 3 Month T-Bill 8.45%Federated US Treasury Cash Money Market 3 Month T-Bill 0.94%Guaranteed Pooled Fund Stable Value Cat: Stable Value 11.31%Vanguard Infl Protected Sec Inflation Protected Barclays U.S. TIPS 0.86%Vanguard GNMA Adml Intermediate Govt Bond Barclays Int Government Bond 0.36%Vanguard Int Term Treasury Intermediate Govt Bond Barclays Int Government Bond 4.08%PIMCO Total Return Admin Intermediate Bond Barclays Aggregate Bond 5.87%Vanguard Total Bond Mkt Index Intermediate Bond Barclays Aggregate Bond 1.82%MainStay HY Bond I High Yield Bond ML US High Yield Master 1.94%BlackRock Equity Dividend Large Cap Value Russell 1000 Value 1.44%Eaton Vance Large Cap Value A Large Cap Value Russell 1000 Value 8.27%Davis NY Venture A Large Cap Blend S&P 500 Index 2.85%TIAA-CREF G&I Instl Large Cap Blend S&P 500 Index 1.13%Fidelity Spartan 500 Index Large Cap Blend S&P 500 Index 11.59%Fidelity Contrafund Large Cap Growth Russell 1000 Growth 5.63%Vanguard PRIMECAP Large Cap Growth Russell 1000 Growth 4.38%Perkins Mid Cap Value T Mid Cap Value Russell Mid Cap Value 1.62%TiAA-CREF Mid Cap Value Instl Mid Cap Value Russell Mid Cap Value 0.45%Vanguard Mid Cap Index Mid Cap Blend MSCI US Prm MC 450 Idx 2.70%Munder Mid Cap Core Growth Y Mid Cap Growth Russell Mid Cap Growth 1.84%Allianz NFJ Small Cap Val Instl Small Cap Value Russell 2000 Value 1.09%Perkins Small Cap Value T Small Cap Value Russell 2000 Value 0.39%Lord Abbett Small Cap Value A Small Cap Blend Russell 2000 Index 0.77%Vanguard Small Cap Index Small Cap Blend MSCI US SC 1750 3.31%Royce Value Plus Instl Small Cap Growth Russell 2000 Growth 1.92%American Funds New Perspective R4 World Stock MSCI World 1.32%Mutual Global Discovery Z World Stock MSCI World 1.04%American Funds EuroPac Grth R4 Foreign Large Equity MSCI EAFE 2.93%Fidelity Spartan International Idx Foreign Large Equity MSCI EAFE 2.33%BlackRock International Opp A Foreign Large Equity MSCI EAFE 1.40%DFA Emerging Markets Value I Emerging Markets MSCI Emerging Markets 4.71%Invesco Real Estate Instl Real Estate DJ Wilshire REIT Index 1.17%Van Eck Global Hard Assets Y Natural Resources S&P Natural Resources 0.12%
0%
2%
4%
6%
3 Year 5 Year
Pepperdine Diversified 403(b) PlanCustom Benchmark - Index (Passive)Custom Benchmark - Category (Active)
3 YR 3 YR 3 YR ExpensePerformance as of December 31, 2010 3 Month 1 Year 3 Year 5 Year Std Dev Mean Sharpe Ratio**
Pepperdine Diversified 403(b) Plan 6.58% 12.36% 1.50% 5.55% 15.47 1.50 0.13 0.60
Custom Benchmark - Index (Passive) 7.03% 12.67% 0.08% 3.90% N/A N/A N/A N/A
Custom Benchmark - Category (Active) 6.94% 12.52% 0.37% 3.94% 16.06 0.37 0.07 0.93*
Annualized Returns
*Custom expense ratio represents the weighted expense (based upon current allocation) of Institutional and Retirement share classes in each asset category.
**Expense calculation includes lifecycle funds.
50
Watch List
Fund Changes SummaryAsset Class Fund Name Added Deleted Action
Foreign Small/Mid DFA Intl Small Cap Value 1Q 2011 Will be added as a Foreign Small/Mid investment option
Natural Resources Van Eck Global Hard Assets 3Q 2010 Added as a Natural Resources investment option
Small Cap Value Perkins Small Cap Value T 2Q 2010 Added as a Small Cap Value investment option
Intermediate Govt Vanguard GNMA Admiral 4Q 2009 Added as an Intermediate Govt investment option
Large Value BlackRock Equity Dividend 4Q 2009 Added as a Large Value investment option
Inflation Protected Vanguard Inflation Protected Secs 3Q 2009 Added as an Inflation Protected investment option
Intermediate Bond Vanguard Total Bond Market Index 3Q 2009 Added as an Intermediate Bond Index option
Money Market Federated US Treasury Cash Reserves 2Q 2009 Added as a Money Market investment option
Asset Class Fund NameAdded to
Watch ListRemoved from
Watch List Rationale
Natural Resources Van Eck Global Hard Assets 3Q 2010 Manager Change
Large Cap Value Eaton Vance Large Value 3Q 2010 Performance related issues.
High Yield Bond Mainstay High Yield Corp 1Q 2010 Performance related issues.
Mid Cap Growth Munder Mid Cap Growth 1Q 2010 Performance related issues.
Small Cap Blend Lord Abbett Small Cap Value 2Q 2009 1Q 10 Manager change
World Stock Mutual Global Discovery 3Q 2009 1Q 10 Manager change & performance related issues
Diversified Plan Asset Allocation
December 31, 2010
Section 3
52
Asset Allocation by Fund (1 of 2)
Fund # of Balances Percent Dollar Percent Dollar
Fidelity Spartan 500 Index 657 3.45% 136,674$ 8.71% 12,495,990$
Guaranteed Pooled Fund 389 9.80% 387,974$ 8.50% 12,189,981$
Vanguard Money Market Instl 270 4.87% 192,937$ 6.35% 9,110,008$
Eaton Vance Large Cap Value 528 1.90% 75,429$ 6.22% 8,923,232$
T. Rowe Price Retirement 2015 199 5.21% 206,379$ 5.12% 7,348,905$
PIMCO Total Return Admin 494 3.35% 132,682$ 4.41% 6,322,782$
Fidelity Contrafund 526 2.50% 99,099$ 4.23% 6,062,796$
T. Rowe Price Retirement 2020 157 5.94% 235,307$ 3.96% 5,679,940$
DFA Emerging Markets Value I 435 2.74% 108,582$ 3.54% 5,081,993$
Vanguard PRIMECAP Adm 399 3.35% 132,622$ 3.29% 4,724,190$
Vanguard Intermediate Term Treasury 303 2.67% 105,878$ 3.07% 4,402,043$
T. Rowe Price Retirement 2010 96 3.82% 151,209$ 2.51% 3,603,945$
Vanguard Small Cap Index 410 1.98% 78,465$ 2.49% 3,569,839$
T. Rowe Price Retirement 2025 149 4.98% 197,125$ 2.37% 3,393,025$
T. Rowe Price Retirement 2030 125 4.75% 188,207$ 2.34% 3,352,476$
American Funds EuroPacific R4 435 1.25% 49,512$ 2.20% 3,154,907$
Davis New Venture Y 384 1.20% 47,611$ 2.14% 3,066,247$
Vanguard Mid Cap Index 409 2.05% 81,105$ 2.03% 2,915,033$
T. Rowe Price Retirement 2035 160 3.79% 149,908$ 1.85% 2,653,582$
T. Rowe Price Retirement 2005 43 1.34% 52,955$ 1.76% 2,530,006$
Fidelity Spartan International Index 410 1.25% 49,678$ 1.75% 2,511,858$ MainStay High Yield Bond I 356 1.79% 71,048$ 1.46% 2,096,087$
Contributions Assets
53
Asset Allocation by Fund (2 of 2)
Fund # of Balances Percent Dollar Percent Dollar
Royce Value Plus Instl 346 0.88% 34,952$ 1.44% 2,071,212$
T. Rowe Price Retirement Income 97 0.54% 21,568$ 1.41% 2,017,124$
Munder Mid Cap Core Growth Y 328 0.93% 36,784$ 1.38% 1,973,454$
Vanguard Total Bond Market Index 241 1.30% 51,404$ 1.37% 1,963,628$
T. Rowe Price Retirement 2040 144 5.30% 209,864$ 1.30% 1,867,926$
Perkins Mid Cap Value T 349 1.14% 44,996$ 1.22% 1,747,028$
BlackRock Equity Dividend I 239 1.20% 47,494$ 1.08% 1,549,969$
BlackRock International Opportunity A 325 1.24% 48,998$ 1.05% 1,501,836$
T. Rowe Price Retirement 2055 10 0.44% 17,375$ 1.03% 1,476,209$
American Funds New Perspective R4 302 0.86% 33,998$ 0.99% 1,414,024$
T. Rowe Price Retirement 2045 162 3.27% 129,479$ 0.93% 1,331,238$
Invesco Real Estate Instl 329 0.99% 39,143$ 0.88% 1,264,396$
TIAA-CREF Growth & Income Instl 282 1.37% 54,302$ 0.85% 1,223,709$
Allianz NFJ Small Cap Value Instl 314 1.02% 40,444$ 0.82% 1,178,123$
Mutual Global Discovery Z 294 1.13% 44,610$ 0.78% 1,122,040$
Federated US Treasuries 44 0.71% 27,983$ 0.71% 1,023,398$
Vanguard Inflation Protected Securities 143 0.53% 21,120$ 0.65% 932,008$
Lord Abbett Small Cap Value A 286 0.60% 23,617$ 0.58% 827,494$
TIAA-CREF Mid Cap Value Instl 276 0.49% 19,415$ 0.34% 490,303$
Perkins Small Cap Value T 223 0.33% 13,071$ 0.29% 420,506$
Vanguard GNMA Admiral 128 0.38% 15,085$ 0.27% 387,433$
T. Rowe Price Retirement 2050 80 1.32% 52,149$ 0.20% 292,046$
Van Eck Global Hard Assets 15 0.05% 1,834$ 0.09% 129,986$
Sub Total 100.00% 3,960,070$ 100.00% 143,393,955$
Personal Choice 14 -$ 5,070,177$
Total 3,960,070$ 148,464,132$
Contributions Assets
54
Asset Allocation by Category (%)
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Fixed Bond Large Cap Mid Cap Small Cap International Specialty Target Date
Large Cap Value Large Cap Blend Large Cap Growth Mid Cap Value Mid Cap BlendMid Cap Growth Small Cap Value Small Cap Blend Small Cap Growth
55
Asset Allocation Quarterly Comparison (1 of 2)Fund Q1-2010 Q2-2010 Q3-2010 Q4-2010
Fidelity Spartan US Equity Index 11,247,577$ 10,097,007$ 11,248,069$ 12,495,990$
Guaranteed Pooled Fund 10,655,865$ 11,039,704$ 11,824,993$ 12,189,981$
Vanguard Money Market 9,329,153$ 9,096,911$ 9,148,849$ 9,110,008$
Eaton Vance Large Cap Value 9,301,337$ 8,159,696$ 8,134,605$ 8,923,232$
T. Rowe Price Retirement 2015 5,916,519$ 6,059,032$ 6,744,083$ 7,348,905$
PIMCO Total Return Admin 5,827,805$ 6,307,864$ 6,762,541$ 6,322,782$
Fidelity Contrafund 5,101,284$ 4,784,036$ 5,378,950$ 6,062,796$
T. Rowe Price Retirement 2020 3,544,591$ 4,095,090$ 4,727,120$ 5,679,940$
DFA Emerging Markets Value I 3,555,930$ 3,453,100$ 4,266,978$ 5,081,993$
Vanguard PRIMECAP 3,759,105$ 3,409,031$ 4,079,170$ 4,724,190$
Vanguard Intermediate Term Treasury 4,723,301$ 4,129,868$ 4,488,935$ 4,402,043$
T. Rowe Price Retirement 2010 3,655,355$ 4,305,745$ 3,247,743$ 3,603,945$
Vanguard Small Cap Index 2,760,837$ 2,580,464$ 2,967,802$ 3,569,839$
T. Rowe Price Retirement 2025 2,359,837$ 2,546,454$ 2,991,478$ 3,393,025$
T. Rowe Price Retirement 2030 2,221,073$ 2,118,441$ 2,903,750$ 3,352,476$
American Funds EuroPacific R4 2,824,754$ 2,520,782$ 2,983,472$ 3,154,907$
Davis New York Venture Y 2,791,053$ 2,530,464$ 2,742,210$ 3,066,247$
Vanguard Mid Cap Index 2,265,530$ 2,119,245$ 2,542,958$ 2,915,033$
T. Rowe Price Retirement 2035 1,939,515$ 1,769,075$ 2,160,978$ 2,653,582$
T. Rowe Price Retirement 2005 2,266,903$ 2,219,679$ 2,381,125$ 2,530,006$
Fidelity Spartan International Index 2,259,664$ 1,945,800$ 2,332,032$ 2,511,858$
MainStay High Yield Bond I 2,469,068$ 1,867,052$ 1,929,014$ 2,096,087$
Royce Value Plus Instl 2,048,142$ 1,906,995$ 1,809,564$ 2,071,212$
56
Asset Allocation Quarterly Comparison (2 of 2)Fund Q1-2010 Q2-2010 Q3-2010 Q4-2010
T. Rowe Price Retirement Income 1,860,704$ 1,799,167$ 1,912,275$ 2,017,124$
Munder Mid Cap Core Growth A 1,834,816$ 1,735,729$ 1,705,824$ 1,973,454$
Vanguard Total Bond Market Index 1,376,424$ 1,502,491$ 1,847,246$ 1,963,628$
T. Rowe Price Retirement 2040 1,199,725$ 1,178,290$ 1,476,081$ 1,867,926$
Perkins Mid Cap Value Inv 1,519,257$ 1,392,489$ 1,531,749$ 1,747,028$
BlackRock Equity Dividend 889,896$ 910,707$ 1,151,261$ 1,549,969$
BlackRock International Opportunity A 1,184,492$ 1,093,271$ 1,359,051$ 1,501,836$
T. Rowe Price Retirement 2055 502,841$ 459,318$ 1,325,838$ 1,476,209$
American Funds New Perspective R4 885,001$ 938,302$ 1,078,181$ 1,414,024$
T. Rowe Price Retirement 2045 867,349$ 875,542$ 1,103,728$ 1,331,238$
Invesco Real Estate Instl 1,243,566$ 1,192,612$ 1,152,900$ 1,264,396$
TIAA-CREF Growth & Income Instl 906,825$ 856,785$ 1,043,328$ 1,223,709$
Allianz NFJ Small Cap Value Instl 966,044$ 834,296$ 968,430$ 1,178,123$
Mutual Discovery Z 994,070$ 954,914$ 952,814$ 1,122,040$
Federated Treasuries 654,059$ 819,861$ 988,372$ 1,023,398$
Vanguard Inflation Protected Securities 618,327$ 1,060,076$ 1,197,066$ 932,008$
Lord Abbett Small Cap Value A 708,232$ 681,836$ 688,434$ 827,494$
TIAA-CREF Mid Cap Value Instl 461,937$ 360,976$ 416,269$ 490,303$
Perkins Small Cap Value T -$ 241,724$ 348,639$ 420,506$
Vanguard GNMA Admiral 243,287$ 266,793$ 349,078$ 387,433$
T. Rowe Price Retirement 2050 137,189$ 154,906$ 216,442$ 292,046$
Van Eck Global Hard Assets -$ -$ 58,618$ 129,986$
Total Core Line Up 121,878,239$ 118,371,623$ 130,668,045$ 143,393,955$
Personal Choice 4,059,464$ 4,020,280$ 4,849,265$ 5,070,177$ Total Plan Assets 125,937,703$ 122,391,902$ 135,517,310$ 148,464,132$
57
Account Balance By Age
Age 20-29, 0.79%
Age 30-39, 8.46%
Age 40-49, 20.47%
Age 50-59, 32.28%
Age 60-69, 29.00%
Age 70+, 8.99%
Age 20-29 1,172,666$
Age 30-39 12,561,799$
Age 40-49 30,397,751$
Age 50-59 47,930,118$
Age 60-69 43,055,305$
Age 70+ 13,347,040$
148,464,679$
58
Asset Allocation By AgeAge 29 & Under Age 30-39 Age 40-49
Age 50-59 Age 60-69 Age 70 & Over
FixedBondEquity
ForeignLifecycleBrokerage
27.21%
9.81%
56.36%
0.00%2.27%
4.35%
42.57%
11.56%
35.63%
4.60%
5.64%0.00%
41.36%
14.33%
23.09%
2.22%10.50%
8.49%
39%
9%
23%
12%
14%4%
33.96%
8.76%
19.39%
5.15%19.55%
13.20%
23.50%
6.17%
31.50%
11.77%
25.15%
1.91%
59
Portfolio Composition By AgeAge 29 & Under Age 30-39 Age 40-49
Age 50-59 Age 60-69 Age 70 & Over
CashUS StocksNon-US Stocks
BondsOther
22.99%
4.88%
62.75%
8.55% 0.83%
21.03%
1.03%
8.73%
61.77%
7.44%
20.42%
13.31%
51.41%
13.37%
1.48%
14.33%
1.16%
17.57%
48.26%
18.67%
12.53%
24.61%
40.69%
20.72%
1.45%
11.17%
1.15%
23.01%
36.20%
28.46%
60
Portfolio Xpress Models
Models 30+ Years To Retirement
20 Years To Retirement
10 Years To Retirement At Retirement 10 Years Into
Retirement
Federated US Treasury Cash 0% 0% 0% 1% 2%
Vanguard PRIME Money Market 0% 0% 0% 1% 2%
Guaranteed Pool 0% 1% 4% 7% 8%
PIMCO Total Return Admin 1% 4% 9% 12% 14%
Vanguard Total Bond Mkt 2% 5% 9% 12% 14%
Vanguard GNMA Adml 0% 1% 2% 3% 4%
Vanguard Infl Protected 0% 1% 2% 3% 4%
Vanguard Interm US Treasury 0% 1% 2% 3% 4%
MainStay HY Corporate Bond I 2% 4% 5% 6% 8%
BlackRock Equity Dividend 7% 6% 5% 4% 3%
Eaton Vance Large Cap Value A 8% 7% 6% 5% 4%
Davis NY Venture Y 4% 4% 3% 3% 2%
Fidelity Spartan US Equity Index 4% 4% 3% 3% 2%
TIAA-CREF Growth & Income Instl 5% 4% 4% 3% 3%
Fidelity Contrafund 7% 6% 5% 4% 3%
Vanguard PRIMECAP 8% 7% 6% 5% 4%
Perkins Md Cap Value Inv 1% 1% 1% 1% 0%
TIAA-CREF Mid Cap Value Instl 2% 1% 1% 1% 0%
Vanguard Mid Cap Index 3% 3% 2% 1% 1%
Munder Mid Cap Core Growth 5% 4% 3% 3% 2%
Allianz NFJ Small Cap Value Instl 2% 2% 1% 1% 1%
Perkins Small Cap Value T 2% 2% 2% 1% 1%
Lord Abbett Small Cap Value A 2% 2% 1% 0% 1%
Vanguard Small Cap Index 2% 2% 2% 0% 1%
Royce Value Plus Instl 4% 3% 2% 3% 2%
Invesco Real Estate Inst 3% 3% 2% 1% 1%
Amer Funds EuroPac Growth R4 4% 3% 2% 2% 1%
Amer Funds New Perspective R4 4% 3% 3% 2% 1%
BlackRock International Opp A 4% 3% 3% 2% 1%
Fidelity Spartan Intl Index 4% 4% 3% 2% 2%
Mutual Global Discovery 4% 4% 3% 2% 2%
DFA Emerging Markets 6% 5% 4% 3% 2%
Fixe
d/Bo
nds
Larg
e Ca
p Eq
uity
Mid
/Sm
all C
ap E
quity
Fore
ign/
Wor
ld E
quity
TIAA-CREF Plan Portfolio Summary
December 31, 2010
Section 4
62
Fund Performance Summary
Funds listed in Green are scheduled to be added. Funds listed in Blue are frozen to new contributionsFunds listed in Red are scheduled to be removed. Funds shaded in Yellow have been placed on the watch list.
Investment Option / Benchmark Category WeightCREF Money Market Money Market 6.03% 0.00 0.00 0.00 0.85 2.41 2.23 0.38ML 3 Month T-Bill 0.04 0.13 0.13 0.79 2.43 2.38Cat: Money Market 0.01 0.04 0.04 0.79 2.31 2.09 0.55TIAA Traditional (RA, GRA) Stable Value 51.61% 0.83 4.00 4.00 4.64 4.50 5.79 0.50Cat: Stable Value 0.59 2.43 2.43 3.01 3.46 4.01 0.55CREF Inflation-Linked Bond Inflation Protected 1.85% -1.00 5.89 5.89 ( 57 ) 4.46 ( 56 ) 4.82 ( 61 ) 6.56 ( 53 ) 0.40Barclays US TIPS -0.65 6.31 6.31 4.97 5.33 7.02Cat: Intermediate Bond -0.77 8.02 8.02 5.82 5.40 5.56 0.81CREF Bond Market Intermediate Bond 3.08% -1.22 6.73 6.73 ( 74 ) 4.96 ( 73 ) 4.99 ( 69 ) 5.36 ( 60 ) 0.40Barclays Aggregate Bond -1.30 6.54 6.54 5.90 5.80 5.84Cat: Intermediate Bond -0.77 8.02 8.02 5.82 5.40 5.56 0.81CREF Social Choice Hybrid 2.87% 5.53 11.95 11.95 ( 53 ) 1.61 ( 27 ) 3.91 ( 44 ) 3.67 ( 55 ) 0.4040% BC Agg / 60% S&P 500 5.85 12.13 12.13 1.14 4.08 3.53Cat: Moderate Allocation 6.56 12.16 12.16 0.43 3.76 3.97 1.11CREF Stock Large Blend 25.75% 10.55 15.72 15.72 ( 23 ) -2.68 ( 43 ) 3.13 ( 32 ) 2.48 ( 40 ) 0.44S&P 500 10.76 15.06 15.06 -2.86 2.29 1.41Cat: Large Blend 10.70 13.81 13.81 -3.03 2.19 2.19 1.10CREF Equity Index 1.92% 11.44 16.45 16.45 -2.37 2.34 1.77 0.38Russell 3000 11.59 16.93 16.93 -2.01 2.74 2.16Cat: Large Blend 10.70 13.81 13.81 -3.03 2.19 2.19 1.10CREF Growth Large Growth 3.67% 11.41 14.98 14.98 ( 55 ) -1.85 ( 44 ) 3.09 ( 44 ) -1.07 ( 79 ) 0.43Russell 1000 Growth 11.83 16.71 16.71 -0.47 3.75 0.02Cat: Large Growth 11.77 15.70 15.70 -2.23 2.96 0.69 1.14CREF Global Equities Global 2.73% 9.13 12.24 12.24 ( 56 ) -4.87 ( 64 ) 2.45 ( 64 ) 1.68 ( 77 ) 0.46MSCI World 8.95 11.76 11.76 -4.85 2.43 2.31Cat: World Stock 8.92 14.28 14.28 -3.53 3.68 3.92 1.35TIAA Real Estate Account Real Estate 0.49% 5.68 13.29 13.29 -11.05 -1.79 3.32 1.06Wilshire REIT 7.87 28.60 28.60 0.18 2.42 10.47Cat: Real Estate 7.01 27.17 27.17 0.58 2.44 10.22 1.29Note: TIAA Traditional performance is based on a Retirement Annuty. Returns of Supllemental Retirement Annutiies are less.
10 Year
12/31/2010Expense
Ratio3 Month YTD 1 Year 3 Year 5 Year
63
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis Summary
Investment Name 4Q10 3Q10 2Q10 1Q10Inflation Protected
CREF Inflation-Linked Bond 33 30 27 28
Intermediate BondCREF Bond Market 37 32 29 29
HybridCREF Social Choice 20 13 14 22
Large BlendCREF Stock 12 10 15 18
Large GrowthCREF Growth 41 41 47 41
GlobalCREF Global 48 49 50 51
Average Rank 32 29 30 31
Plan Weighted Rank (Reweighted) 20 18 22 24
Quarterly Ranking
64
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Returns (40%)
Investment Name 3 Yr 5 Yr 10 Yr
Inflation ProtectedCREF Inflation-Linked Bond 56 61 53 57 41 49
Intermediate BondCREF Bond Market 73 69 60 67 53 60
HybridCREF Social Choice 26 44 55 42 54 48
Large BlendCREF Stock 43 32 40 38 19 29
Large GrowthCREF Growth 44 44 79 56 79 67
GlobalCREF Global Equities 64 64 77 68 82 75
Average Rank 51 52 61 55 54 55
ReturnsA vg R anking R anking Score
Rolling ReturnsTrailing Returns
65
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Risk (30%)
Investment Name 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr 10 Yr
Inflation ProtectedCREF Inflation-Linked Bond 56 58 53 56 55 46 42 48 49 51 63 54 53
Intermediate BondCREF Bond Market 43 44 41 43 79 70 54 68 39 42 62 48 53
HybridCREF Social Choice 27 41 53 40 66 77 71 71 24 28 37 30 47
Large BlendCREF Stock 38 31 39 36 22 17 29 23 72 66 63 67 42
Large GrowthCREF Growth 46 45 77 56 49 46 43 46 43 45 78 55 52
GlobalCREF Global Equities 62 66 79 69 50 56 69 58 59 61 58 59 62
Average Rank 45 48 57 50 54 52 51 52 48 49 60 52 51
Risk-AdjustedR anking Score
Sharpe Ratio Up Capture RatioR anking
Down Capture RatioR anking
66
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Style (15%)
Investment Name 3 Yr 5 Yr 10 Yr
Inflation ProtectedCREF Inflation-Linked Bond 11 6 16 11 N/A N/A N/A 11
Intermediate BondCREF Bond Market 3 2 2 2 43 N/A N/A 23
HybridCREF Social Choice 2 2 2 2 N/A N/A N/A 2
Large BlendCREF Stock 24 19 17 20 N/A 0 92 37
Large GrowthCREF Growth 1 1 1 1 N/A 11 60 24
GlobalCREF Global Equities 1 1 1 1 N/A N/A N/A 1
Average Rank 7 5 7 6 43 6 76 16
StyleA vg R anking R anking R anking R anking Score
Bond Quality Consistency DispersionR2
67
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Expense (15%)
Investment NameInflation Protected
CREF Inflation-Linked Bond 14
Intermediate BondCREF Bond Market 6
HybridCREF Social Choice 3
Large BlendCREF Stock 5
Large GrowthCREF Growth 2
GlobalCREF Global Equities 2
Average Rank 5
RankingExpense
68
Quantitative Analysis Overview
75%Outperform Perform Underperform
0% 25% 50% 100%
EXPENSE - 15%
Inflation Protected
CREF Inflation-Linked Bond 57 41 56 48 54 11 N/A N/A N/A 14 39 33
Intermediate Bond
CREF Bond Market 67 53 43 68 48 2 43 N/A N/A 6 44 37
Hybrid
CREF Social Choice 42 54 40 71 30 2 N/A N/A N/A 3 34 20
Large Blend
CREF Stock 38 19 36 23 67 20 N/A 0 92 5 30 12
Large Growth
CREF Growth 56 79 56 46 55 1 N/A 11 60 2 46 41
Global
CREF Global Equities 68 82 69 58 59 1 N/A N/A N/A 2 49 48
Average Rank 55 54 50 52 52 6 43 6 76 5 41 32
R2Down
Capture(Bond)Quality Total Score
(Equity)Disp.
%Rank
Prosp Net Ratio
(Equity)Cons.Fund Name
FUND SCORERETURNS - 40% RISK - 30% STYLE - 15%
Trailing RollingSharpe Ratio
Up Capture
69
Correlation Matrix
.70 to 1.0 Highly Positive
0.00 to -.69 Moderate Negative
0.01 to .69 Moderate Positive
-.70 to -1.0 Highly Negative
Name CR
EF
Mon
ey M
arke
t
CR
EF T
radi
tiona
l (G
RA,
RA
& R
L)
CR
EF
Infla
tion-
Link
ed B
ond
CR
EF B
ond
Mar
ket
CR
EF S
ocia
l Cho
ice
CR
EF S
tock
CR
EF E
quity
Inde
x
CR
EF G
row
th
CR
EF G
loba
l Equ
ities
TIAA
Rea
l Est
ate
Acco
unt
CREF Money Market 80% -10% -12% -44% -45% -44% -49% -46% -6%
CREF Traditional (GRA, RA & RL) 80% -18% -25% -46% -47% -45% -49% -48% -13%
CREF Inflation-Linked Bond -10% -18% 77% 43% 36% 34% 35% 38% -17%
CREF Bond Market -12% -25% 77% 40% 31% 28% 25% 35% -26%
CREF Social Choice -44% -46% 43% 40% 99% 99% 96% 98% -6%
CREF Stock -45% -47% 36% 31% 99% 99% 98% 99% -3%
CREF Equity Index -44% -45% 34% 28% 99% 99% 98% 98% -2%
CREF Growth -49% -49% 35% 25% 96% 98% 98% 97% -2%
CREF Global Equities -46% -48% 38% 35% 98% 99% 98% 97% -4%
TIAA Real Estate Account -6% -13% -17% -26% -6% -3% -2% -2% -4%
70
Range of InvestmentsLower risk/lower potential reward Higher risk/higher potential reward
BALANCEDCAPITAL
PRESERVATION INCOME HYBRID VALUE BLEND GROWTH
LARGE BLEND- CREF Stock- CREF Equity Index
LARGE GROWTH- CREF Growth
SPEC
IALT
Y REAL ESTATE- TIAA Real Estate
FOR
EIG
N WORLD STOCK- CREF Global Equities
EQUITYFIXED INCOME
DO
MES
TIC
MONEY MARKET- CREF Money Market- TIAA Traditional
INFLATION PROTECTED BOND- CREF Inflation Linked Bond
INTERMEDIATE BOND- CREF Bond Market
MODERATE ALLOCATION- CREF Social Choice
71
Holdings Based Style Analysis
3 Year Style Trail
Deep-Value Core-Value Core Core-Growth High-Growth
Mic
r oSm
all
Mid
Lar g
eG
iant
CREF Growth 3/2008 12/2010
Investment Name Start Date End DateCREF Stock 3/2008 11/2010CREF Equity Index 3/2008 12/2010
72
Portfolio Return vs. Custom Benchmark
Annualized Returns Benchmark WeightingsFund Name Category (Active) Index (Passive) WeightCREF Money Market Money Market 3 Month T-Bill 6.03%TIAA Traditional Stable Value Cat: Stable Value 51.61%CREF Inflation Linked Bond Inflation Protected Bond Barclays U.S. TIPS 1.85%CREF Bond Market Intermediate Term Bond Barclays Aggregate Bond 3.08%CREF Social Choice Moderate Allocation 40%Barclays Agg/60%S&P500 2.87%CREF Stock Large Cap Blend S&P 500 Index 25.75%CREF Equity Index Large Cap Blend Russell 3000 Index 1.92%CREF Growth Large Cap Growth Russell 1000 Growth 3.67%CREF Global Equities Global Stock MSCI World 2.73%TIAA Real Estate Specialty - Real Estate Wilshire REIT 0.49%
3 YR 3 YR 3 YR ExpensePerformance as of December 31, 2010 3 Month 1 Year 3 Year 5 Year 10 Year Std Dev Mean Sharpe Ratio
Pepperdine TIAA-CREF 403(b) Plan 4.13% 8.18% 2.17% 4.37% 4.16% 8.54 2.17 0.22 0.47
Custom Benchmark - Index (Passive) 4.12% 7.17% 0.97% 3.18% 3.13% N/A N/A N/A N/A
Custom Benchmark - Category (Active) 4.01% 7.19% 1.34% 3.38% 3.22% 8.33 1.34 0.13 0.77*
Annualized Returns
*Custom expense ratio represents the weighted expense (based upon current allocation) of Institutional and Retirement share classes in each asset category.
0%
1%
2%
3%
4%
5%
3 Year 5 Year
Pepperdine TIAA-CREF 403(b) PlanCustom Benchmark - Index (Passive)Custom Benchmark - Category (Active)
TIAA-CREF Plan Asset Allocation
December 31, 2010
Section 5
74
Asset Allocation by Fund
Fund % of Assets Assets ($)
TIAA Traditional 51.60% 74,339,288$
CREF Stock 25.75% 37,100,140$
CREF Money Market 6.03% 8,688,764$
CREF Growth 3.67% 5,289,299$
CREF Bond Market 3.08% 4,442,687$
CREF Social Choice 2.87% 4,139,475$
CREF Global Equities 2.73% 3,929,374$
CREF Equity Index 1.92% 2,772,404$
CREF Inflation-linked Bond 1.85% 2,659,126$
TIAA Real Estate 0.49% 700,520$
Total 100.00% 144,061,075$
75
Asset Allocation by Category (%)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Fixed Bond Balanced Large Cap International Specialty
Large Cap Blend Large Cap Growth
76
Asset Allocation Quarterly Comparison ($)
Fund Q1-2010 Q2-2010 Q3-2010 Q4-2010
TIAA Traditional 75,005,017$ 75,413,907$ 74,641,079$ 74,339,288$
CREF Stock 36,499,594$ 30,930,440$ 34,149,048$ 37,100,140$
CREF Money Market 9,912,560$ 9,409,450$ 8,954,270$ 8,688,764$
CREF Growth 4,793,379$ 4,218,234$ 4,733,162$ 5,289,299$
CREF Bond Market 3,772,718$ 4,090,336$ 4,544,376$ 4,442,687$
CREF Social Choice 4,146,232$ 3,922,567$ 3,950,605$ 4,139,475$
CREF Global Equities 3,804,694$ 3,181,454$ 3,567,617$ 3,929,374$
CREF Equity Index 2,621,162$ 2,278,463$ 2,492,382$ 2,772,404$
CREF Inflation-linked Bond 2,641,745$ 2,534,902$ 2,634,959$ 2,659,126$
TIAA Real Estate 349,020$ 364,280$ 651,262$ 700,520$
Total 143,546,122$ 136,344,033$ 140,318,760$ 144,061,075$
77
Asset Allocation Quarterly Comparison (%)
52.2
5%
25.4
3%
6.91
%
3.34
%
2.63
%
2.89
%
2.65
%
1.83
%
1.84
%
0.24
%
55.3
1%
22.6
9%
6.90
%
3.09
%
3.00
%
2.88
%
2.33
%
1.67
%
1.86
%
0.27
%
53.1
9%
24.3
4%
6.38
%
3.37
%
3.24
%
2.82
%
2.54
%
1.78
%
1.88
%
0.46
%
51.6
0%
25.7
5%
6.03
%
3.67
%
3.08
%
2.87
%
2.73
%
1.92
%
1.85
%
0.49
%
0%
10%
20%
30%
40%
50%
60%
TIA
A T
radi
tiona
l
CR
EF
Sto
ck
CR
EF
Mon
ey M
arke
t
CR
EF
Gro
wth
CR
EF
Bon
d M
arke
t
CR
EF
Soc
ial C
hoic
e
CR
EF
Glo
bal E
quiti
es
CR
EF
Equ
ity In
dex
CR
EF
Infla
tion-
linke
dB
ond
TIA
A R
eal E
stat
e
Q1-2010Q2-2010Q3-2010Q4-2010
78
Growth of Plan Assets
$10,000,000
$30,000,000
$50,000,000
$70,000,000
$90,000,000
$110,000,000
$130,000,000
$150,000,000
$170,000,000
$190,000,000
Plan Assets $163,060,699 $161,259,967 $160,896,646 $148,267,259 $133,698,746 $139,366,932 $144,886,963 $146,739,645 $143,546,122 $136,344,033 $140,318,760 $144,061,075
Mar-08 June-08 Sept-08 Dec-08 Mar-09 Jun-09 Sept-09 Dec-09 Mar-10 Jun-10 Sept-10 Dec-10
Prudential Plan Portfolio Summary
December 31, 2010
Section 6
80
Fund Performance Summary
Funds listed in Green are scheduled to be added. Funds listed in Blue are frozen to new contributionsFunds listed in Red are scheduled to be removed. Funds shaded in Yellow have been placed on the watch list.
Investment Option / Benchmark Category WeightMedley Money Market Money Market 2.05% -0.19 -0.70 -0.70 0.34 1.91 1.70 1.00ML 3 Month T-Bill 0.04 0.13 0.13 0.79 2.43 2.38Cat: Money Market 0.01 0.04 0.04 0.79 2.31 2.09 0.55Guaranteed Interest Account Stable Value 60.06% 0.98 3.87 3.87 3.93 3.97 4.41 0.49Cat: Stable Value 0.59 2.43 2.43 3.01 3.46 4.01 0.55Medley Government Income Intermediate Govt 1.46% -1.20 6.11 6.11 ( 33 ) 5.47 ( 54 ) 4.86 ( 78 ) 4.82 ( 70 ) 1.28Barclays Intermediate Govt -1.55 4.98 4.98 4.94 5.41 5.11Cat: Intermediate Govt Bond -0.88 5.75 5.75 5.46 5.33 5.07 0.80Medley Diversified Bond Intermediate Bond 4.65% -0.49 9.66 9.66 ( 19 ) 7.94 ( 16 ) 6.58 ( 20 ) 5.95 ( 31 ) 1.20Barclays Aggregate Bond -1.30 6.54 6.54 5.90 5.80 5.84Cat: Intermediate Bond -0.77 8.02 8.02 5.82 5.40 5.56 0.81Medley Conservative Balanced Conservative Allocatio 1.92% 5.21 10.90 10.90 ( 53 ) 1.01 ( 80 ) 3.53 ( 70 ) 3.10 ( 72 ) 1.3465% BC Agg / 35% S&P 500 2.85 9.96 9.96 3.31 4.93 4.62Cat: Conservative Allocation 3.29 10.79 10.79 3.00 4.37 4.46 1.10Medley Flexible Managed Moderate Allocation 0.61% 6.48 11.19 11.19 ( 68 ) -0.42 ( 70 ) 3.02 ( 73 ) 2.75 ( 75 ) 1.3440% BC Agg / 60% S&P 500 5.85 12.13 12.13 1.14 4.08 3.53Cat: Moderate Allocation 6.56 12.16 12.16 0.43 3.76 3.97 1.11Medley Stock Index Large Blend 4.14% 10.44 13.75 13.75 -3.77 1.29 0.40 1.12S&P 500 10.76 15.06 15.06 -2.86 2.29 1.41Cat: Large Blend 10.70 13.81 13.81 -3.03 2.19 2.19 1.10Medley Capital Growth Large Growth 12.18% 13.09 11.52 11.52 ( 85 ) -2.56 ( 57 ) 2.31 ( 62 ) 3.20 ( 9 ) 1.00Medley Equity 11.45% 11.22 11.09 11.09 ( 87 ) -2.20 ( 50 ) 2.54 ( 57 ) 1.97 ( 27 ) 1.23Russell 1000 Growth 11.83 16.71 16.71 -0.47 3.75 0.02Cat: Large Growth 11.77 15.70 15.70 -2.23 2.96 0.69 1.14Medley Global Global 1.48% 8.68 11.88 11.88 ( 60 ) -6.15 ( 76 ) 1.49 ( 80 ) 0.87 ( 85 ) 1.59MSCI World 8.95 11.76 11.76 -4.85 2.43 2.31Cat: World Stock 8.92 14.28 14.28 -3.53 3.68 3.92 1.35
12/31/2010
5 Year 10 YearExpense
Ratio3 Month YTD 1 Year 3 Year
81
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis Summary
Investment Name 4Q10 3Q10 2Q10 1Q10Intermediate Government
Medley Government Income 87 90 92 91
Intermediate BondMedley Diversified Bond 42 45 51 50
Conservative AllocationMedley Conservative Balanced 73 69 58 69
Moderate AllocationMedley Flexible Managed 74 75 73 75
Large GrowthMedley Capital Growth 31 35 26 20Medley Equity 38 33 30 26
GlobalMedley Global 87 86 82 82
Average Rank 62 62 59 59
Plan Weighted Rank (Reweighted) 43 44 38 34
Quarterly Ranking
82
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Returns (40%)
Investment Name 3 Yr 5 Yr 10 Yr
Intermediate GovernmentMedley Government Income 54 78 69 67 80 74
Intermediate BondMedley Diversified Bond 16 20 31 22 35 29
Conservative AllocationMedley Conservative Balanced 80 70 72 74 81 78
Moderate AllocationMedley Flexible Managed 70 73 75 73 76 74
Large GrowthMedley Capital Growth 57 63 9 43 15 29Medley Equity 50 57 27 45 25 35
GlobalMedley Global 76 80 85 80 89 85
Average Rank 58 63 53 58 57 58
ReturnsA vg R anking R anking Score
Rolling ReturnsTrailing Returns
83
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Risk (30%)
Investment Name 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr 10 Yr 3 Yr 5 Yr 10 Yr
Intermediate GovernmentMedley Government Income 46 71 79 65 50 67 28 48 48 51 77 59 57
Intermediate BondMedley Diversified Bond 25 28 37 30 21 24 29 25 45 47 58 50 35
Conservative AllocationMedley Conservative Balanced 81 73 74 76 35 26 23 28 76 84 80 80 61
Moderate AllocationMedley Flexible Managed 73 73 76 74 77 75 56 69 36 43 74 51 65
Large GrowthMedley Capital Growth 46 57 10 38 18 20 30 23 85 86 34 68 43Medley Equity 53 58 30 47 56 63 57 59 42 41 24 36 47
GlobalMedley Global 76 79 85 80 59 67 63 63 66 67 76 70 71
Average Rank 57 63 56 59 45 49 41 45 57 60 60 59 54
Risk-AdjustedR anking Score
Sharpe Ratio Up Capture RatioR anking
Down Capture RatioR anking
84
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Style (15%)
Investment Name 3 Yr 5 Yr 10 Yr
Intermediate Government BondMedley Government Income 59 60 45 55 N/A N/A N/A 55
Intermediate BondMedley Diversified Bond 54 51 55 53 87 N/A N/A 70
Conservative AllocationMedley Conservative Balanced 1 1 1 1 N/A N/A N/A 1
Moderate AllocationMedley Flexible Managed 2 2 2 2 N/A N/A N/A 2
Large GrowthMedley Capital Growth 81 79 86 82 N/A 54 79 72
Medley Equity 21 18 39 26 N/A 50 86 54
GlobalMedley Global 1 1 7 3 N/A N/A N/A 3
Average Rank 31 30 34 32 87 52 83 37
Style
A vg R anking R anking R anking R anking Score
Bond Quality Consistency DispersionR2
85
75%Outperform Perform Underperform
0% 25% 50% 100%
Quantitative Analysis – Expense (15%)
Investment NameIntermediate Government
Medley Government Income 96
Intermediate BondMedley Diversified Bond 90
Conservative AllocationMedley Conservative Balanced 80
Moderate AllocationMedley Flexible Managed 77
Large GrowthMedley Capital Growth 40Medley Equity 62
GlobalMedley Global 76
Average Rank 74
RankingExpense
86
Quantitative Analysis Overview
75%Outperform Perform Underperform
0% 25% 50% 100%
EXPENSE - 15%
Intermediate Government Bond
Medley Government Income 67 80 65 48 59 55 N/A N/A N/A 96 69 87
Intermediate Bond
Medley Diversified Bond 22 35 30 25 50 53 87 N/A N/A 90 46 42
Conservative Allocation
Medley Conservative Balanced 74 81 76 28 80 1 N/A N/A N/A 80 62 73
Moderate Allocation
Medley Flexible Managed 73 76 74 69 51 2 N/A N/A N/A 77 61 74
Large Growth
Medley Capital Growth 43 15 38 23 68 82 N/A 54 79 40 41 31
Medley Equity 45 25 47 59 36 26 N/A 50 86 62 45 38
Global
Medley Global 80 89 80 63 70 3 N/A N/A N/A 76 67 87
Average Rank 58 57 59 45 59 32 87 52 83 74 56 62
Fund Name
FUND SCORERETURNS - 40% RISK - 30% STYLE - 15%
Trailing RollingSharpe Ratio
Up Capture
%Rank
Prosp Net Ratio
(Equity)Cons.R2
Down Capture
(Bond)Quality Total Score
(Equity)Disp.
87
Correlation Matrix
.70 to 1.0 Highly Positive
0.00 to -.69 Moderate Negative
0.01 to .69 Moderate Positive
-.70 to -1.0 Highly Negative
Name Med
ley
Mon
ey M
arke
t
Gua
rant
eed
Inte
rest
Acc
ount
Med
ley
Gov
ernm
ent I
ncom
e
Med
ley
Div
ersi
fied
Bond
Med
ley
Con
serv
ativ
e Ba
lanc
ed
Med
ley
Flex
ible
Man
aged
Med
ley
Stoc
k In
dex
Med
ley
Cap
ital G
row
th
Med
ley
Equi
ty
Med
ley
Glo
bal
Medley Money Market 47% -13% -40% -43% -42% -40% -40% -40% -41%
Guaranteed Interest Account 47% -7% -13% -7% -6% -6% -11% -10% -8%
Medley Government Income -13% -7% 70% 27% 21% 14% 9% 9% 16%
Medley Diversified Bond -40% -13% 70% 73% 69% 62% 63% 61% 67%
Medley Conservative Balanced -43% -7% 27% 73% 100% 99% 93% 96% 98%
Medley Flexible Managed -42% -6% 21% 69% 100% 99% 94% 97% 98%
Medley Stock Index -40% -6% 14% 62% 99% 99% 93% 98% 97%
Medley Capital Growth -40% -11% 9% 63% 93% 94% 93% 98% 94%
Medley Equity -40% -10% 9% 61% 96% 97% 98% 98% 97%
Medley Global -41% -8% 16% 67% 98% 98% 97% 94% 97%
88
Range of InvestmentsLower risk/lower potential reward Higher risk/higher potential reward
BALANCEDCAPITAL
PRESERVATION INCOME HYBRID VALUE BLEND GROWTH
LARGE BLEND- Medley Stock Index
LARGE GROWTH- Medley Capital Growth- Medley Equity
FOR
EIG
N WORLD STOCK- Medley Global
EQUITYFIXED INCOME
DO
MES
TIC
MONEY MARKET- Medley Money Market
STABLE VALUE- Prudential GIA
INTERMEDIATE GOVERNMENT- Medley Govt Income
INTERMEDIATE BOND- Medley Diversified Bond
CONSERVATIVE ALLOCATION- Medley Conservative BalancedMODERATE ALLOCATION- Medley Flexible Managed
89
Holdings Based Style Analysis3 Year Style Trail
Deep-Value Core-Value Core Core-Growth High-Growth
Mic
roS
mal
lM
i dLa
r ge
Gia
nt
Medley Equity 3/2008 12/2010
Investment Name Start Date End Date
Medley Stock Index 3/2008 12/2010
Medley Capital Growth 3/2008 12/2010
90
Portfolio Return vs. Custom Benchmark
Annualized Returns Benchmark WeightingsFund Name Category (Active) Index (Passive) WeightMedley Money Market Money Market 3 Month T-Bill 2.05%Prudential GIA Stable Value Cat: Stable Value 60.06%Medley Government Income Intermediate Government Barclays Int Govt 1.46%Medley Diversified Bond Intermediate Bond Barclays Aggregate 4.65%Medley Conservative Balanced Conservative Allocation 65% BC Agg / 35% S&P 500 1.92%Medley Flexible Managed Moderate Allocation 40% BC Agg / 60% S&P 500 0.61%Medley Stock Index Large Cap Blend S&P 500 Index 4.14%Medley Capital Growth Large Cap Growth Russell 1000 Growth 12.18%Medley Equity Account Large Cap Growth Russell 1000 Growth 11.45%Medley Global World Stock MSCI World 1.48%
0%
1%
2%
3%
4%
5%
3 Year 5 Year
Pepperdine Prudential 403(b) PlanCustom Benchmark - Index (Passive)Custom Benchmark - Category (Active)
3 YR 3 YR 3 YR ExpensePerformance as of December 31, 2010 3 Month 1 Year 3 Year 5 Year 10 Year Std Dev Mean Sharpe Ratio
Pepperdine Prudential 403(b) Plan 4.07% 6.92% 2.59% 3.95% 4.09% 7.38 2.59 0.30 0.76
Custom Benchmark - Index (Passive) 3.74% 6.85% 1.94% 3.61% 3.01% N/A N/A N/A N/A
Custom Benchmark - Category (Active) 3.65% 6.87% 1.91% 3.56% 3.10% 7.03 1.91 0.22 0.73*
Annualized Returns
*Custom expense ratio represents the weighted expense (based upon current allocation) of Institutional and Retirement share classes in each asset category.
Prudential Plan Asset Allocation
December 31, 2010
Section 7
92
Asset Allocation by Fund
Fund % of Assets Assets ($)
Prudential Guaranteed Interest 60.06% 1,883,353$
Medley Capital Growth 12.18% 381,846$
Medley Equity 11.45% 358,913$
Medley Diversified Bond 4.65% 145,833$
Medley Stock Index 4.14% 129,932$
Medley Money Market 2.05% 64,171$
Medley Conservative Balanced 1.92% 60,215$
Medley Global 1.48% 46,363$
Medley Government Income 1.46% 45,892$
Medley Flexible Managed 0.61% 19,139$
Total 100.00% 3,135,656$
93
Asset Allocation by Category (%)
62.11%
6.11%
23.63%
2.53% 4.14%1.48%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Fixed Bond Hybrid Large Cap International
Large Cap Blend Large Cap Growth
94
Asset Allocation Quarterly Comparison ($)
Fund Q1-2010 Q2-2010 Q3-2010 Q4-2010
Prudential Guaranteed Interest 1,852,458$ 1,857,209$ 1,878,215$ 1,883,353$
Medley Capital Growth 372,641$ 317,345$ 350,208$ 381,846$
Medley Equity 636,535$ 548,794$ 329,038$ 358,913$
Medley Diversified Bond 139,736$ 142,691$ 146,555$ 145,833$
Medley Stock Index 134,737$ 119,054$ 123,416$ 129,932$
Medley Money Market 70,855$ 70,733$ 70,612$ 64,171$
Medley Conservative Balanced 56,347$ 53,514$ 57,232$ 60,215$
Medley Global 48,816$ 42,772$ 48,848$ 46,363$
Medley Government Income 46,477$ 48,026$ 46,449$ 45,892$
Medley Flexible Managed 24,353$ 22,706$ 24,431$ 19,139$
3,382,955$ 3,222,845$ 3,075,004$ 3,135,656$
95
Asset Allocation Quarterly Comparison (%)
54.7
6%
11.0
2%
18.8
2%
4.13
%
3.98
%
2.09
%
1.67
%
1.44
%
1.37
%
0.72
%
57.6
3%
9.85
%
17.0
3%
4.43
%
3.69
%
2.19
%
1.66
%
1.33
%
1.49
%
0.70
%
61.0
8%
11.3
9%
10.7
0%
4.77
%
4.01
%
2.30
%
1.86
%
1.59
%
1.51
%
0.79
%
60.0
6%
12.1
8%
11.4
5%
4.65
%
4.14
%
2.05
%
1.92
%
1.48
%
1.46
%
0.61
%
0%
10%
20%
30%
40%
50%
60%
70%P
rude
ntia
l Gua
rant
eed
Inte
rest
Med
ley
Cap
ital G
row
th
Med
ley
Equ
ity
Med
ley
Div
ersi
fied
Bon
d
Med
ley
Sto
ck In
dex
Med
ley
Mon
ey M
arke
t
Med
ley
Con
serv
ativ
eB
alan
ced
Med
ley
Glo
bal
Med
ley
Gov
ernm
ent
Inco
me
Med
ley
Flex
ible
Man
aged
Q1-2010Q2-2010Q3-2010Q4-2010
96
Growth of Plan Assets
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Plan Assets $4,810,807 $4,901,610 $4,443,301 $4,076,628 $3,529,970 $3,620,009 $3,429,692 $3,311,696 $3,382,955 $3,222,845 $3,075,004 $3,135,656
Mar-08 June-08 Sept-08 Dec-08 Mar-09 June-09 Sept-09 Dec-09 Mar-10 June-10 Sept-10 Dec-10
Appendix
98
Effective 9/30/2007 – Change to Foreign Large Cap Equity Universe
The evaluation methodology for foreign large cap equity funds has been changed to broaden the universe to include value, blend and growth funds. The rationale for this change was based on the following criteria:
• Return-based style analysis illustrates that foreign large cap equity funds do not display strong style consistency quarter over quarter
• The portfolio characteristics (P/E, regional exposure, market caps) are highly correlated across the value, blend and growth categories
• Foreign equity fund mandates (prospectus objectives and guidelines) generally allow managers greater flexibility to invest in companies with various style versus their domestic counterparts
• Foreign funds can invest across regions and countries whose market valuations are affected by individual currency and interest rates that are inherent to those areas, therefore, classifying holdings in traditional value and growth categories may not accurately reflect the manager’s stock selection style. For example, a high P/E growth company (based upon domestic measures) in Japan may be classified as a value stock simply because the Japanese market is undervalued compared to other foreign markets, thereby undervaluing the individual companies.
Effective 12/31/2009 – Change to Evaluation Methodology
Details of the evaluation methodology changes can be found on the following pages or in Appendix B of the Investment Policy Statement.
Evaluation Methodology Changes
99
BFSG Evaluation Methodology – Sample Fund
Weight Criteria Scoring Metholodgy3 Year
Ranking5 Year
Ranking10 YearRanking Total Ranking
Trailing Returns Average Ranking of 3, 5 and 10 year returns 56% 22% 8% 29%
Rolling Returns Average Ranking of 1 year rolling returns is re-ranked against the custom peer group 4%
Sharpe Ratio Average Ranking of 3, 5 and 10 year sharpe ratio 61% 23% 7% 30%
Up Capture Ratio Average Ranking of 3, 5 and 10 year up capture ratio 77% 68% 32% 59%
Down Capture Ratio Average Ranking of 3, 5 and 10 year down capture ratio 31% 14% 21% 22%
R-Squared Average Ranking of 3, 5 and 10 year R-squared to benchmark 12% 32% 34% 26%
Equity Consistency Lower standard deviation receives a better score 6%
Equity Dispersion Less scatter receives a better score 68%
Expense15% Expense Lower expense receives a better score 8%
Total Fund Score Weighted criteria ranking 24%
Fund Ranking Ranking withing custom peer group 2%
Prospectus Net Expense Ratio
Return40%
Risk30%
Style15%
Average of 37 calculations = 30%
3 year standard deviation of holdings centroid which is determined using underlying holdings
Measures degree of scatter among current holdings
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Glossary of Terms
Correlation Coefficient (r)The correlation coefficient measures the degree and direction of the linearrelationship between two funds. Correlation coefficients can be measured from -1to 1 which would indicate a perfectly negative linear relationship and a perfectlypositive linear relationship, respectively. A correlation coefficient of 0 means there isno linear relationship between the two funds.
Down Capture RatioThe Down Capture Ratio calculates the percentage of return of an index a fund willcapture during down market cycles.
Expense RatioThe percentage of fund assets paid for operating expenses and management fees,including 12b-1 fees, administrative fees, and all other asset-based costs incurred bythe fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV.Sales charges are not included in the expense ratio.
Growth StocksInvestors employing a growth investment strategy buy stocks of companies with arecent history of increasing earnings, in anticipation that earnings momentum willcontinue. Growth stocks are often characterized by high valuation ratios (e.g., price-to-earnings ratios). See also: value stocks.
Mutual FundA type of investment company that offers for sale or has outstanding securitieswhich it has issued and which are redeemable on demand by the fund at current netasset value. All owners in the fund share in the gains or losses of the fund.
Net Asset Value (NAV)Usually used in connection with investment companies to mean net asset value pershare. An investment company computes its assets daily, or even twice daily, bytotaling the market value of all securities owned. All liabilities are deducted, and thebalance is divided by the number of shares outstanding. The resulting figure is thenet asset value per share. The net asset value of a mutual fund (open-endinvestment company) is the bid and redemption price.
R-squaredR-squared is a measure of what percentage of a fund’s return can be attributed to movements in the benchmark. An R-squared of 100 indicates that all movements of a fund can be explained by its benchmark index.
Sharpe RatioA direct measure of reward-to-risk. Defined as:
Formula: (Rx - Rf) / x
Rx = Average annual rate of return of XRf = Rate of return of a “risk-free” security (3 month T-bill)
x = (Excess return – 3 month T-bill) 2
Sharpe ratio measures the efficiency in the amount of risk taken as compared tothe reward received for taking such risk.
Standard DeviationA statistical measurement of dispersion about an average, which, for a mutual fund,depicts how widely the returns varied over a certain period of time. Investors usethe standard deviation of historical performance to try to predict the range ofreturns that are most likely for a given fund. When a fund has a high standarddeviation, the predicted range of performance is wide, implying greater volatility.
Total ReturnsReturns for periods longer than one year are expressed as “annualized returns.”This is equivalent to the compound rate of return which, over a certain period oftime, would produce a fund’s total return over that same period.
Up Capture RatioThe Up Capture Ratio calculates the percentage return of an index a fund willcapture during up market cycles.
Value StocksInvestors employing a value investment strategy buy stocks of companies theybelieve are under-priced based on their fundamental ability to generate earnings, inanticipation that the price performance of the stock will reverse. Value stocks areoften characterized by low valuation ratios (e.g., price-to-earnings ratios).
101
Retirement Plan Limits
ITEM IRS CODE 2010 2009 2008 2007 2006
Defined Contribution Annual Limit 1 415 (c)(1)(A) 49,000$ 49,000$ 46,000$ 45,000$ 44,000$
Defined Benefit Annual Limit 1 415 (b)(1)(A) 195,000$ 195,000$ 185,000$ 180,000$ 175,000$
Maximum Compensation Limit 2 401(a)(17) 245,000$ 245,000$ 230,000$ 225,000$ 220,000$
401(k) & 403(b) Employee Deferral Limit 3 402(g)(1) 16,500$ 16,500$ 15,500$ 15,500$ 15,000$
Catch-Up Deferral Limit 4 414(v)(2)(B)(i) 5,500$ 5,500$ 5,000$ 5,000$ 5,000$
Highly Compensated Employee (HCE) Compensation Level 5 414(q)(1)(B) 110,000$ 110,000$ 105,000$ 100,000$ 100,000$
Maximum SIMPLE Plan Deferral Limit 1 408(p)(2)(E) 11,500$ 11,500$ 10,500$ 10,500$ 10,000$
Social Security Tax Wage Base 106,800$ 106,800$ 102,000$ 97,500$ 94,200$
1 Limits are applied for the calendar year.2 Based on year in which plan year begins. All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.3 Employee deferrals to 401(k) and 403(b) plans must be aggregated for purposes of this limit. Limits are applied during the calendar year.4 Available to employees age 50 and older during the calendar year. 5 For the 2009 plan year, an employee who earns $105,000 in 2008 is an HCE. For the 2010 plan year, an employee who earns $110,000 in 2009 is an HCE.
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Warranties
This report was prepared by Benefit Funding Services Group using data compiled from various sources. Benefit Funding Services Group does not warrant the accuracy of data provided by other sources, but does make reasonable efforts to obtain and utilize only reliable information.
Past investment performance does not guarantee future results.
The material in this report is for Plan Sponsor use only and should not be reproduced without written permission by Benefit Funding Services Group.
Disclosures
Returns stated in this report are net of fees unless otherwise noted.
Sharpe Ratio and Standard Deviation data are provided for a 3-year period prior to the reporting date, unless otherwise noted.
Calculations for returns-based style analysis charts are done by Morningstar Direct.
Evaluation methodology calculations are provided by Morningstar Direct.
Fund universes comprised of the Morningstar retail mutual fund universe and is customized by excluding index funds, funds that lack a 3-year track record and non-retirement share classes (e.g. B and C shares)
Fund details and portfolio characteristics are provided by Morningstar Direct with the most recent data available from the investment companies.
Investment advisory services offered through Investment Advisor Representatives of Benefit Funding Services Group.
Morningstar category returns are used to proxy fund returns lacking historical data in order to generate plan-weighted performance.
For share classes with limited history, performance has been extended by using the oldest share classes and adjusting for any expense differential.
Important Information