March 8, 2013 Second Floor, Financial Services - Dogwood ... · 08/03/2013 · Second Floor,...

Gwinnett County, Georgia Investment Committee of the RPMC

March 8, 2013

9:30 a.m. Second Floor, Financial Services - Dogwood Conference Room

Agenda

Call to order

1. Approval of Agenda* ML

2. Approval of Investment Committee Minutes* ML

3. Presentation on Securities Litigation Robbins Geller Rudman 4. Transition Manager Selection for Large Cap BR

a.) State Street b.) BNY Mellon

5. Asset Allocation Discussion UBS/BR

6. Fee Discussion for Management Searches UBS 7. Monitoring of UBS/Great-West Litigation ML

Adjournment*

*Action Items

Gwinnett County, Georgia Investment Committee of the RPMC

Quarterly Meeting Minutes February 08, 2012 8:30 a.m.

Dogwood Conference Room - GJAC Members Present: Mike Ludwiczak, Karen Karasinski, Phil Hoskins, Paul Turner, Members Absent: Bill Rodenbeck Staff Present: Aaron Bovos, Debbi Davidson, Megan Ward, Rick Reagan Others Present: UBS Members –Earle Dodd, Scott Olsen; Great- West Members – Fred Minot, Michael Baker Chairman Mike Ludwiczak called the meeting to order at 8:37 a.m. Approval of Agenda

Action: Motion to Approve: Paul Turner; Second: Karen Karasinski. Vote (4-0); Ludwiczak – Yes; Hoskins – Yes; Karasinski – Yes; Turner – Yes.

Approval of Investment Committee Minutes

Regular Meeting: 9:30 A.M. January 11, 2013 Action: Motion to Approve: Karen Karasinski; Second: Paul Turner. Vote (4-0); Ludwiczak – Yes; Turner – Yes; Hoskins– Yes; Karasinski – Yes. Fourth Quarter 2012 Report Great-West Michael Baker of Great-West reviewed the 4th Quarter performance reports for the County’s DC plans. The full presentations are available on the County’s website. Alerts for 401a/ 457b Mutual Funds Michael Baker reviewed a spreadsheet of alert messages that pertain to areas of concern as outlined in the Investment Policy.

Fourth Quarter 2012 Report UBS Earle Dodd and Scott Olsen of UBS reviewed the 4th Quarter performance reports for the County’s DB plans. The full presentations are available on the County’s website. Status Update: Signing Large Cap Investment Agreements The contracts for TCW and Columbia have been reviewed and are ready to be presented to RPMC for final review and approval.

Discussion of Goals and Projects for 2013 Revenue Sharing funds were addressed and Mike Ludwiczak made a motion to recommend to the RPMC that a policy be developed for funds to be distributed back to participants on an ongoing basis which Phil Hoskins seconded. Vote (4-0); Ludwiczak – Yes; Turner – Yes; Hoskins– Yes; Karasinski – Yes.

Adjournment Action: Motion to Adjourn: Phil Hoskins; Second: Mike Ludwiczak. Vote (4-0); Ludwiczak – Yes; Hoskins – Yes; Karasinski – Yes; Turner – Yes. Meeting was adjourned at 10:44 a.m. Next meeting is Friday March 8, 2013 at 9:30 a.m. in the DoFS Dogwood Conference Room on the 2nd floor of GJAC at 75 Langley Drive Lawrenceville, GA 30046.

Portfolio Solutions

Equity Pre-Transition Implementation Shortfall AnalysisGwinnett County Base Currency: USD

Equity Pre-Transition Implementation Shortfall Analysis

Prepared for Gwinnett County February 22, 2013

State Street Global Markets, Confidential Page 1 of 10 2/22/2013

Equity Pre-Transition Implementation Shortfall AnalysisGwinnett CountyBase Currency USD

Implementation Shortfall Summary

Trading Costs Estimation Costs Distribution

Trading Costs Distribution

* include only US/Canadian trades

** include all trades not in US/Canada

*** some positions may take longer due to liquidity

concerns

Portfolio Summary

1,353,578

Cash In Portfolio 1,632,091

Shares

1,830,640

-

97,960,164

0.14

Target Portfolio

1.26 Bid Ask Spread (bps)

4.90

1.61

Legacy Portfolio

(0.47%)

1.61%

Expected Shortfall (bps) (ex FX)

97,960,164

1 Year Return

30 Day Return

5 Day Return

% Weight Top 5 names

(1.55%)

64 49 Names

1.07 Portfolio Beta 1.07

(1.77%)

22.46%

0.88%

18.54%

4.61

RUSSELL 1000 GROWTH IBenchmark Index RUSSELL 1000 GROWTH I

18.88% 16.34%

1.00%

1 Day Return

Cost

Total Costs

Mean Cost of Transition (bps)

One Standard Deviation Event +/- bps from mean

25,877

28,187 41,360

Potential Costs Savings Estimated IS bps2.27 2.88 4.22

26,287 22,230 4,058

8,810

Commissions

Bid Ask Spread

Market Impact

FX Spread

13,010

36,997

54,369

9.51

Market Value

Liquidity (% of ADV)

11.27

(0.81%)

1.42%

1,224,300

-

93,114

1.27

- -

118,991

-

-

Two Standard Deviation Event +/- bps from mean

Days to Trade ***

22.54

Average Commission (cps) *

Average Commission (bps) **

1,338 Taxes/Fees 1,338

9.51

1

In-Kind Transfer37.2%

Internal Cross9.4%External Cross

5.2%

Open Market Trade46.4%

Cash / Futures1.8%

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

prob

abilit

y

bps of shortfall

Cost Without Crossing Cost With Crossing



Trading Summary

Execution Method

Execution Method

Summary

4.22 2.27 2.88

1.06

-

-

1.61

-

2.23

2.23

4.68 3.39 2.03

4.41

-

-

Bid Ask Spread

-

1.26 19,536

1.61

-

-

Target Total

TOTALS

External Crossing

Bid Ask Spread

-

-

28,187

Market Impact (bps)

1.99 1.07

-

Commission Cost

-

bps

1.21

-

2.79

-

- -

-

1.26

Amount

36,403,044

9,484,565

5,895,004

10,479

1,830,640

Amount

-

44,346,912

97,960,164

36,403,044

Commission Cost

-

Market Impact Cost

1.99

Market Impact Cost

-

0.09

-

-

-

- -

- 1,393

Internal Crossing

Open Market Trading

External Crossing

11,872

Internal Cross

Commissions (bps)Execution Method

In-Kind Transfer

889

8,940,814

-

-

-

12,386

-

-

-

19,536

Open Market Trading (Target)

195,920,328

External Cross

46,609,688

4,374,527

-

- -

-

15,802 0.97

- -

-

10,358

22,230

Bid Ask Spread (bps)

41,360

21,823

21,823 15,802

-

9,469

12,386

0.14 -

- - -

-

Market Impact Cost

bps

Commission Cost Bid Ask Spread

-

- -

-

-

Bid Ask Spread Market Impact Cost Commission Cost

-

97,960,164

1,632,091

2.22

Open Market Trading (Legacy)

-

2.36

Lega

cyTa

rget

Cash / Futures

Open Market Trading

In-Kind Transfer

Legacy Total

Cash / Futures

Internal Crossing

In-Kind Transfer

0.00.51.01.52.02.53.03.54.04.55.0

In-KindTransfer

Internal Cross ExternalCross

Open MarketTrading(Legacy)

Open MarketTrading(Target)

( bps

)

Commission Cost Bid Ask Spread Market Impact Cost



Detailed Cost Calculation

Commissions

Execution Method

In-Kind Transfer

Internal Cross

External Cross

Open Market Trading

Cash / Futures

Totals

Bid Ask Spread and Market Impact

% of ADV

0 % - 5 %

5 % - 10 %

10 % - 20 %

20 % - 40 %

40 % - 60 %

60 % - 80 %

80 % - 100 %

100 % - 200 %

200 % - 500 %

Greater 500 %

Opportunity Costs (bps)Timeframe

Start of Transition

Mid Day, Day One

End of Day One

Mid Day, Day Two

End of Day Two

Day Three

Day Four

Day Five

50.0%

0.00%

0.00%

0.00%

0.00%

-

Daily TE

0.45%

0.00%

0.00%

-

100.0%

100.0%

100.0%0.00%

100.0%

100.0%

0.03%

0.00%

0.00%

0.0%

Total Shares

-

Total Commissions

-

825,400

Commission Rate (bps)

-

Total Costs (bps)

-

-

2.88

-

Weekly TE

-

-

-

-

-

% of Complete

-

-

-

-

- -

-

22,230

2,282

19,948

9.37

-

4.22

-

0.20%

-

-

-

100.0%

270,502

10,269,531 0.23

2.04

-

90,956,599

152,111

-

1,329,864

-

Total Market Value

- 72,806,087

-

2,577,878

Market Impact (bps)

2.27

-

Bid Ask Spread (bps)

-

-

3.19%

Annualized TE

0.0%

0.0%

3,462,731

% of Trading

195,920,328

Commission Rate (bps)

0.0%

2.27

-

-

- 0.0%

100.0%

0.0%

18,425,379

0.0% -

0.00%

0.00%

0.00%

0.00%

0.00%

0.0%

0.0%

-

-

-

0.00%

0.00%

0.07%

-

-

0.00%

0.52%

0.0%

-

0.00%

0%

20%

40%

60%

80%

100%

In-Kind Transfer Internal Cross External Cross Open Market Trading

% of Trading % of Commissions

0.00.51.01.52.02.53.03.54.04.5

0 % - 5%

5 % - 10%

10 % -20 %

20 % -40 %

40 % -60 %

60 % -80 %

80 % -100 %

100 % -200 %

200 % -500 %

Greater500 %

( bps

)

Commission Cost Bid Ask Spread Market Impact Cost

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

0.0%

0.1%

0.1%

0.2%

0.2%

0.3%

Start ofTransition

Mid Day,Day One

End of DayOne

Mid Day,Day Two

End of DayTwo

Day Three Day Four Day Five

Daily TE % of Complete



Country Analysis - Developed Markets

* For purposes of reconciling non-U.S. currency values for the calculation of implementation shortfall in this report, such values are converted at the London Close (11 AM EST) mid point of the WM fixing rate

on the business day prior to the date of this report.

- Spain

-

-

-

-

-

-

-

-

-

-

(198,549)

- -

-

-

-

Variance#

Names

-

49

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

64

-

-

-

-

-

-

-

-

-

-

96,129,524

Eur

ope,

Mid

dle

Eas

t and

Afri

ca

Hong Kong

New Zealand

Switzerland

United Kingdom

Asi

a P

acifi

c

Greece

Netherlands

Norway

Sweden

-

-

-

-

-

-

-

-

- -

Portugal

Belgium

Germany

Ireland

-

-

- Finland -

-

-

-

Futures

Others

-

-

-

-

-

-

-

-

-

-

-

-

-

Buys

-

United States

-

Australia

-

-

-

-

Israel

-

# Names

-

-

-

Japan

Am

eric

as

-

Canada

Country Sells

96,328,073

-

-

- -

Austria

-

Singapore

-

Denmark

Italy -

France

-

-

-

-

-

-

-

-

-

- 0% 0% 0% 0% 0% 0%

Canada

United States

Australia

Hong Kong

Japan

New Zealand

Singapore

Austria

Belgium

Denmark

Finland

France

Germany

Greece

Ireland

Israel

Italy

Netherlands

Norway

Portugal

Spain

Sweden

Switzerland

United Kingdom

Futures

Others

Underweight Overweight



Sector Analysis

Sector

-

-

-

4,514,961 7

(1,681,504)

(6,201,945)

-

-

17

-

2,546,261 13

-

-

1,325,320

6,009,955

4,706,689

-

-

1,325,320

-

-

-

2,162,339 5

-

-

-

-

- -

-

-

-

-

-

-

-

-

3 (4,177,135)

1

(3,304,523)

4

-

-

- -

-

- -

-

-

-

-

-

-

-

-

- -

- -

-

-

-

17,415,620 11,213,675

13

7

30,147,447

11,386,723

6 4,617,676

3

3

18,110,608

8,364,250

33,451,970

6,871,762

Buys#

Names Sells#

Names Variance

8

-

-

-

- -

-

-

-

-

-

-

-

-

-

-

-

-

-

- -

-

-

Materials

Telecommunication Services

Futures

Industrials

Information Technology

-

-

Fund -

-

- - -

- -

-

-

-

- -

-

-

-

-

Financials

Health Care

-

-

Energy

-

Industrials -

Materials -

-

-

-



-

Fund

-

-

-

-

-

- -

-

-

-

Financials

Health Care

-

-

-

-

-

-

-

-

-

-

-

-

Health Care

Industrials


Materials

-

Consumer Staples -

-

- Futures

-

-

3,847,616

-

Consumer Discretionary

-

-

10

-

-

3

4,864,856

-

- -

- -


15,564,347

Energy 6

4

3,746,574


Consumer Staples

6,546,360

Utilities

FundFutures

Financials


Utilities

Asi

a P

acifi

c

Utilities

Eur

ope,

Mid

dle

Eas

t and

Afri

ca Consumer Staples

Energy

Am

eric

as

8,883,824

-

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


Consumer Staples

Energy

Financials

Health Care

Industrials


Materials


Utilities

Fund

Futures

Underweight Overweight

Americas Asia Pacific EMEA



Liquidity Analysis

Target Portfolio Legacy Portfolio

Top Five Least Liquid Names - Target Portfolio Top Five Least Liquid Names - Legacy Portfolio

Summary

Total

0.0%

0.0%

0.0%

100.0%

200 % - 500 %

Greater 500 % 0.0%

0.0% -

100.0%

- 0.0%

0.0%

93,114

60 % - 80 %

40 % - 60 %

-

-

1,669

ECOLAB INC41,400 1.8% 2,223

- 0.0%

100.0%

9,500

19,000 2.0%

-

0.0%

0.0%

100 % - 200 % 0.0%

80 % - 100 %

-

KANSAS CITY SOUTHERN

3,014 3.2%

TRIMBLE NAVIGATION LTD

2.1% 1,577

AMETEK INC

1,747 2.6%

Total 100.0%

-

-

1.6%

0.0%

13,600 1.4%FMC TECHNOLOGIES INC

Liquidity Tier % of ShortfallExpected Shortfall

93,114 100.0%

758

24,360 1,667

NOVO-NORDISK A/S-SPONS ADR

CERNER CORP 1,425

17,220 2.0%

CATAMARAN CORP

45,132 49

80 % - 100 %

-

-

Name

-

100 % - 200 %

1,169

Expected Shortfall

2.2%17,320

59,726,480

44,205

% of ADVShares

5.0% 2,410

0.0% -

0.0% - - -

-

- -

-

-

-

- -

-

200 % - 500 %

Greater 500 % 0.0%0.0% -

-

40 % - 60 % 40 % - 60 % - - -

5 % - 10 %

10 % - 20 % -

-

0.0%

-

0 % - 5 %

5 % - 10 %

47,983

-

100.0% 59,925,029

0.0%

0.0%

-

-

-

-

- -

-

Weight

0.0% -

-

- 0.0%

-

- -

Expected Shortfall

100.0% 59,726,480 49 45,132

# of NamesMV

20 % - 40 % -

- -

-

41

60 % - 80 % 0.0%

0.0% -

# of Names % of Avg. Daily VolumeExpected Shortfall

20 % - 40 %

0 % - 5 %

-

-

-

OCEANEERING INTL INC

- -

41 59,925,029

0.0% - - -

47,983

53,500

Shares % of ADVExpected Shortfall

MV

0.0%

- 0.0%

0.0%

0.0%

10 % - 20 %

FASTENAL CO

% of Avg. Daily Volume Weight

100 % - 200 %

200 % - 500 %

Greater 500 %

20 % - 40 %

5 % - 10 %

% of Trading

24,100

0.0% -

Total 100.0%

Name

10 % - 20 %

0.0%

0.0%

0.0%

0.0%

0.0% -

0.0%

60 % - 80 %

0 % - 5 %

80 % - 100 %

0.0%

0%10%20%30%40%50%60%70%80%90%

100%

1 2 3 4 5 6 7 8 9 10

Completion % Daily Traded



Optimal Trading Roadmap

* Marginal Contribution to Risk

State Street uses optimal trading techniques developed from years of experience as a Transition Manager to decrease tracking error more efficiently at the start of a transition. Opportunity cost if not controlled can be the largest

27%

State Street uses optimal trading techniques developed from

years of experience as a Transition Manager to decrease tracking

error more efficiently at the start of a transition. Opportunity cost if

not controlled can be the largest component of implementation

shortfall which is why we use low cost trading methodologies

along with advanced risk management techniques to control

potential performance dispersion.

38%

S-CAMERON INTERNATIONAL CORP 0.02%

B-EQUINIX INC

S-CBS CORP-CLASS B NON VOTING 0.02%

0.02%

0.02%

12%

0.02%

B-LAS VEGAS SANDS CORP

NA

0.02%

28%

B-FACEBOOK INC-A 0.02%

11%B-VMWARE INC-CLASS A

S-EBAY INC

0%

37%

B-MICHAEL KORS HOLDINGS LTD 0.03%

Name

Europe, Middle East and Africa

25%0.03%

Historical Cross Rate

4%

MCR*Historical Cross

Rate Name

B-LINKEDIN CORP - A 0.03%

Americas

B-LIFE TECHNOLOGIES CORP

MCR*Historical Cross

Rate

Asia Pacific

MCR*Name

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

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

Trac

king

Erro

r

% of Complete

Day 1

Day 2

Day 3

Day 4

Day 5

After Day 5



Individual Stock Analysis

Largest Positions to Trade

Most Illiquid Trades

Note: State Street maintains a database of all transition trades. The historical cross rate represents the average cross rate for each position from prior transitions in last 3 years.

1,834,065

2,722,615 B 53,500

44,205

Market Value

% of Total Trading

OCEANEERING INTL INC

FMC TECHNOLOGIES INC

KANSAS CITY SOUTHERN

Top 10 Positions, Total MV 18,397,360

TRIMBLE NAVIGATION LTD

NOVO-NORDISK A/S-SPONS ADR

CATAMARAN CORP

CERNER CORP

15.4% 21.0%

19,529

COGNIZANT TECH SOLUTIONS-A B 39,000

% of Total Costs

Total Cost

24,360

1.8%

1,321,530

2,931,630

1.6% NA NA

8.96 51%

10.54 26%

46%

50%

S

17%

30%

52% 22%

62%

1%73%

29%

10.79

B 41,400

S 17,320

1,643,120

2,109,744

1,491,790

1,022,226

B 24,100

B

11.71

2.2% 11.43

9.60 2.1%

2.6%

B 19,000

S 17,220

1,637,040

9,500

1.8%

9.91 2.0%1,683,599

2.0% 10.18

% of Total Trading 21.0%

AMETEK INC

% of Total Costs 21.0%

SideName

0.3%

57%

Historical Cross Rate

29%

Transitions Trading

56%

35%5.0%

Shortfall (bps)

13.14

35%

42%

25%

2,154,617

11.07 3.2%

5.23 50%

Market Value % of Avg Vol

FASTENAL CO

Shares

S

5.97 40% 40%

27%0.6% 7.54 30%

HOME DEPOT INC S 33,600 2,163,168 0.6%

MASTERCARD INC-CLASS A S 4,430 2,301,784

Top 10 Positions, Total MV 25,078,654 19,541

33,240 B

Total Cost

QUALCOMM INC

PRICELINE.COM INC

S 61,030 2,446,082 COMCAST CORP-CLASS A

B 3,760 2,569,321 22%

0.4% 6.99 47% 33%

0.6% 7.66 57%

1.2% 7.35 54% 28%

65% 28%

ACCENTURE PLC-CL A S 31,570 2,331,445

7.72 2,405,209 1.1%SALESFORCE.COM INC B 14,270

29%

3.2% 56% 25%

51%1.8%COGNIZANT TECH SOLUTIONS-A B 39,000

11.07

2,931,630 8.96

2,722,615 FASTENAL CO B 53,500

Historical Cross RateTransitions Trading

LINKEDIN CORP - A

Name SharesSide

4%

Shortfall (bps)

B 19,400 8.17 31%3,052,784 0.6%

% of Avg Vol



Corporate Action Information

Upcoming Earnings Information Upcoming Stock Splits

Upcoming Dividend Information Summary

SILVER WHEATON CORP B

VERISK ANALYTICS INC-CLASS A B

CATAMARAN CORP

COSTCO WHOLESALE CORP

S

0.73%

2.21%

S

Weight

1.03%

26-Feb-2013

1.35% 28-Feb-2013

7-Mar-2013

Weight

Announce Date

1.99%

1.21%

5-Mar-2013

26-Feb-2013

Ex Date

1.37%

26-Feb-2013

26-Feb-2013

S 26-Feb-2013

SALESFORCE.COM INC

S

Security Side

AVAGO TECHNOLOGIES LTD

S

Side

B

3.21%PRICELINE.COM INC

1 1,022,226 0.52%

37,671,626 15

1.44%

21-Mar-2013

12-Mar-2013

26-Feb-2013

27-Feb-2013

12

Upcoming Dividends (within 30 days)26-Feb-2013

Upcoming Splits (within 30 days)

Upcoming Earnings (within 30 days)B 3.42%

Security

26-Feb-2013

HOME DEPOT INC

3.65% 28-Feb-2013

2.33% 26-Feb-2013

19.23%

B

ECOLAB INC

AMERICAN TOWER CORP B

CBS CORP-CLASS B NON VOTING S

PRAXAIR INC B

OCCIDENTAL PETROLEUM CORP B

PRECISION CASTPARTS CORP

NIKE INC -CL B S 1.22% 28-Feb-2013

2.87% 6-Mar-2013

1.41% 6-Mar-2013

1.93%

GOLDMAN SACHS GROUP INC S

ESTEE LAUDER COMPANIES-CL A

Split Date

TRIMBLE NAVIGATION LTD S 1.04%

Security Side Weight

QUALCOMM INC B 4.74% 6-Mar-2013

S 1.68%

OCEANEERING INTL INC B 1.52%

1.61%

B

% of PortfolioSecurity # of Positions

26,527,616 13.54%

Market Value

ALLERGAN INC

21-Mar-2013


GWINNETT COUNTYPRE-TRADE: U.S. EQUITY TRANSITIONBase: USD3/1/2013

INTRODUCTION

SUMMARY

GUIDE TO READING THIS ANALYSIS

Proposed Manager Transition Summary, Transition Overview & Regional Exposure Alignments

Estimates of Cost and Risk

Comparison of Impact Estimates and Decomposition of Risk

Market Environment

Key Contacts, Glossary and Important Information

These sections summarize the managers, asset classes and the major exposure differences (if any) between the legacy and target

portfolios.

Based upon our analysis of the assets included in the transition overview, this section provides detail on the expected explicit and

implicit costs, as well as the assumptions around which those estimates are derived.

This section compares the impact estimates that affect the cost of the transition and how differing trade strategies affect that impact

estimate. This is immediately followed by the results of our factor-based risk analysis.

BNY Mellon offers a comprehensive fiduciary approach that is dedicated solely to serving the transition management needs of our clients. Our industry-leading team uses sophisticated portfolio management and trading tools to create comprehensive, customized and risk-controlled solutions.

The development of a pre-trade strategy is an iterative process — we welcome your ideas for making this analysis as useful for you as possible. Below, we summarize the most pertinent statistics and concerns that we have identified for this event as well as provide a guide to the analysis that follows.

Our mean cost estimate for this transition is -88,012 or -8.9 basis points, based on the value of the assets in transition. Due to the tracking error between current and target portfolios, we estimate a one standard deviation range of +/-18.1 basis points around that central estimate. Given the liquidity of the portfolios, we estimate that 100% of the portfolio transition will be complete within the first day of trading.

Recent, relevant market information on specific names and general conditions of volatility and trading volume.

The goal of the trade strategy will be to minimize the implementation shortfall costs while controlling the residual risk between your current and target portfolios during the trade process.

Sincerely,BNY Mellon Beta & Transition Management

-27.0

-8.9

9.2

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

Lower 1σ

Estimate

Central Estimate Upper 1σ

Estimate

Ba

sis

po

ints

Pre-Trade Implementation Shortfall

1

This document should not be published in hard copy, electronic form, via the web or in any other medium accessible to the public unless authorized by The Bank of New York Mellon, MBSC Securities Corporation, BNY MAMIL

or any other affiliates.


PROPOSED MANAGER TRANSITION SUMMARY

Manager Class Legacy Weight Target Weight Exposure

Rainier Legacy Manager Equity 96,991,454 98% 96,991,454

Cash 1,830,640 2% 1,830,640

TCW Target Manager Equity 47,517,721 48% (47,517,721)

Columbia Target Manager Equity 48,835,696 49% (48,835,696)

Cash 2,468,677 2% (2,468,677)

Total 98,822,094 100% 98,822,094 100%

TRANSITION OVERVIEW

Stocks Names Shares Value Avg. Price Inkind Value Trade Shares Trade Value

Legacy / Sell 64 1,353,578 96,991,454 71.66 36,609,483 942,278 60,381,971

Target / Buy 49 1,212,300 96,353,417 79.48 36,609,483 801,000 59,743,934

Total 113 2,565,878 193,344,871 73,218,966 1,743,278 120,125,905

Cash Value

Legacy / Sell 1,830,640

Target / Buy 2,468,677

Net (638,037)

The table below is a summary of the managers and asset notionals involved in the proposed transition. Where managers are being retained but having their mandate notional reduced/increased, only the delta may be shown as a Legacy/Target manager as the inkinds are assumed.

98%

2%

LEGACY

Equity Fixed Income

98%

2%

TARGET

Equity Fixed Income

2




REGIONAL EXPOSURES

Region Legacy Target Inkind Sell Buy Net Buy/Sell

Pacific - - - - - -

Asia Pacific Ex Japan - - - - - -

Japan - - - - - -

Asia Pacific Subtotal - - - - - -

EMEA Ex United Kingdom - - - - - -

United Kingdom - - - - - -

GDR - - - - - -

EMEA Subtotal - - - - - -

Americas Ex United States - - - - - -

United States 96,991,454 (96,353,417) 36,609,483 60,381,971 (59,743,934) 638,037

Americas Subtotal 96,991,454 (96,353,417) 36,609,483 60,381,971 (59,743,934) 638,037

Overall 96,991,454 (96,353,417) 36,609,483 60,381,971 (59,743,934) 638,037

Below, we highlight the legacy and target global beta exposure profile of the proposed transition and the net difference between them. During a transition, the sell program (Legacy portfolio less inkinds) can be considered "Long" exposure while the buy program (Target portfolio less inkinds) can be considered "Short" exposure.

Managing the beta exposure significantly reduces the risk of the shift, which in turn helps to reduce the cost and thus preserve asset value. When exposure management issues arise related to global market trading hours, we use a variety of techniques to manage beta differences without leveraging the portfolio.

(80,000,000)

(60,000,000)

(40,000,000)

(20,000,000)

-

20,000,000

40,000,000

60,000,000

80,000,000

Pacific Asia PacificEx Japan

Japan EMEA ExUnited

Kingdom

UnitedKingdom

GDR Americas ExUnited States

United States

Regional Beta Exposures

Sell Buy Net Buy/Sell

3




ESTIMATE OF COST

Fiduciary Commission Schedule:

U.S. (CPS) DEV (BPS) EM (BPS)

1.25 N/A N/A

Trading Cost Item Mean Estimate Mean BPS Crossing Estimates by Exchange

Equity Commissions (21,791) (2.2) Exchange Ext. Cross Open Market

Equity Taxes & Fees (1,353) (0.1) U.S. 48,050,362 72,075,543

Effective Equity Spread (21,406) (2.2) World - -

Equity Market Impact (43,462) (4.4) Total (40%) 48,050,362 72,075,543

Total Estimated Costs (88,012) (8.9)

Explicit costs such as commissions, taxes and fees are totaled with estimates of implicit costs such as spread and impact. Predicted spread and impact costs are generated through several independent models which incorporate historical liquidity data, observed bid/ask spreads, historical volatility and correlation matrices to forecast approximate trading costs. The actual costs will differ depending upon the composition of the transition portfolio. Market movement will also have an effect on the realized transition performance.

(5.0) (4.5) (4.0) (3.5) (3.0) (2.5) (2.0) (1.5) (1.0) (0.5)

-Equity Commissions Equity Taxes & Fees Effective Equity Spread Equity Market Impact

BP

S

Estimated Costs(Average Contribution to Shortfall)

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Very

Passiv

e

Passiv

e

Neutr

al 1

Neutr

al 2

Neutr

al 3

Aggre

ssiv

e

Very

Aggre

ssiv

e

BP

S

Ex-Ante Execution Impact Frontier(Impact BPS at Varying Levels of Urgency)

4




ESTIMATE OF RISK

Mean BPS

Total Estimated Costs (8.9)

Annual (%) Transition BPS

Multifactor Risk Projection 3.22 +/- 18.1

Lower Est. Upper Est. Lower BPS Upper BPS

Shortfall Boundary (68% Range) -267,301 91,278 -27.0 9.2

Shortfall Boundary (95% Range) -446,590 270,567 -45.2 27.4

Because the legacy and target portfolios do not track each other perfectly, there is a projected variance around our mean cost forecast, which we would strive to reduce through optimized trading and an overall focus on beta management. While the normal distribution is a reasonable framework for a high level consideration of risk, there is considerable academic and industry evidence to suggest that the bell curve does not sufficiently capture the price jumps, serial correlation, and fat tails periodically experienced in capital markets.

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Tota

l R

isk

Loca

lM

ark

et

Ris

k

Com

mo

nF

acto

r R

isk

Ind

ustr

y

Sty

le

Facto

rIn

tera

ction

Sele

ctio

nR

isk

Curr

en

cy

Ris

k

Curr

en

cy/M

ark

et

Inte

raction

Ris

k (

% S

igm

a)

Multifactor Model Active Risk Decomposition(Active Risk Sources)

-1σ +1σ

-2σ +2σ

-100.0 -80.0 -60.0 -40.0 -20.0 0.0 20.0 40.0 60.0 80.0

Basis Points

Mean Estimated Costs

5




LIQUIDITY PROFILE

120,125,905 100.00%

120,125,905 100.00%

Bucket Sell Value Buy Value Sell Shares Buy Shares Sell Names Buy Names

0 to 5% 58,514,752 59,743,934 898,073 801,000 48 41

5 to 10% 1,867,219 - 44,205 - 1 -

10 to 25% - - - - - -

25 to 50% - - - - - -

50 to 100% - - - - - -

100 to 250% - - - - - -

250+ - - - - - -

Total 60,381,971 59,743,934 942,278 801,000 49 41

TOP 10 TRADES BY DESCENDING % ADV (SELL PROGRAM)

Name Sell Sell MV % ADV FX

AMETEK INC 44,205 1,867,219 5.78 USD

KANSAS CITY SOUTHERN 17,220 1,700,992 2.15 USD

TRIMBLE NAVIGATION LTD 17,320 1,023,612 2.08 USD

CATAMARAN CORP 24,360 1,331,274 1.57 USD

ECOLAB INC 13,600 1,015,920 1.35 USD

ACCENTURE PLC-CL A 31,570 2,361,436 1.25 USD

T ROWE PRICE GROUP INC 18,040 1,297,256 1.14 USD

ILLUMINA INC 14,090 690,833 1.13 USD

RED HAT INC 21,680 1,110,883 1.11 USD

TRACTOR SUPPLY COMPANY 8,250 835,313 1.07 USD

TOP 10 TRADES BY DESCENDING % ADV (BUY PROGRAM)

Name Buy Buy MV % ADV FX

FASTENAL CO 52,800 2,717,616 3.17 USD

OCEANEERING INTL INC 23,800 1,488,690 2.70 USD

NOVO-NORDISK A/S-SPONS ADR 9,400 1,639,830 2.13 USD

CERNER CORP 18,700 1,637,372 2.00 USD

COGNIZANT TECH SOLUTIONS-A 38,400 2,932,992 1.91 USD

FMC TECHNOLOGIES INC 40,700 2,111,109 1.80 USD

ARM HOLDINGS PLC-SPONS ADR 36,300 1,550,010 1.69 USD

VERISK ANALYTICS INC-CLASS A 6,970 379,447 1.33 USD

ACE LTD 22,100 1,915,849 1.26 USD

FRANKLIN RESOURCES INC 9,700 1,389,428 1.22 USD

ADR

Common Stock

Common Stock

ADR

Common Stock

Common Stock

Common Stock

Common Stock

Common Stock

Common Stock

Security Type

Common Stock

Common Stock

Common Stock

Common Stock

Security Type

Common Stock

Estimated Completion (Day 1):

Estimated Completion (Day 1): Max Complete / Liquidity Permitting

Common Stock

Common Stock

Common Stock

Cash Neutral Residuals

Common Stock

Common Stock

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

0 to 5% 5 to 10% 10 to 25% 25 to 50% 50 to 100% 100 to 250% 250+

Tradelist Liquidity Profile (Overall)

6




REGIONAL LIQUIDITY PROFILE

LIQUIDITY PROFILE (ASIA-PACIFIC)Bucket Sell Value Buy Value

0 to 5% - -

5 to 10% - -

10 to 25% - -

25 to 50% - -

50 to 100% - -

100 to 250% - -

250+ - -

Total - -

LIQUIDITY PROFILE (EMEA)Bucket Sell Value Buy Value

0 to 5% - -

5 to 10% - -

10 to 25% - -

25 to 50% - -

50 to 100% - -

100 to 250% - -

250+ - -

Total - -

LIQUIDITY PROFILE (AMERICAS)Bucket Sell Value Buy Value

0 to 5% 58,514,752 59,743,934

5 to 10% 1,867,219 -

10 to 25% - -

25 to 50% - -

50 to 100% - -

100 to 250% - -

250+ - -

Total 60,381,971 59,743,934

With access to nearly every major broker across developed and emerging markets as well as Direct Market Access in the U.S., Europe, and Asia, we have outstanding access to both liquidity (market and dark) and risk capital (when needed). We utilize brokers that are best suited for each respective asset class, receiving real-time fills from all destinations, while centrally managing the overall transition risk profile. We also actively seek additional liquidity through the conversion of GDRs, ADRs, and foreign shares when appropriate and available. Our approach is built upon complete transparency in execution venue and method.

-

0

0

0

0

1

1

1

1

1

1

0 to 5% 5 to 10% 10 to 25% 25 to 50% 50 to 100% 100 to 250% 250+

Tradelist Liquidity Profile (Asia-Pacific)

-

0

0

0

0

1

1

1

1

1

1

0 to 5% 5 to 10% 10 to 25% 25 to 50% 50 to 100% 100 to 250% 250+

Tradelist Liquidity Profile (EMEA)

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

0 to 5% 5 to 10% 10 to 25% 25 to 50% 50 to 100% 100 to 250% 250+

Tradelist Liquidity Profile (Americas)

7




SECTOR PROFILE

GICS Sell M.V. Sell (Weight) Buy M.V. Buy (Weight) Net

Aggregate Assets - 0% - 0% -

Consumer Discretionary 14,904,341 25% 12,324,809 21% 2,579,531

Consumer Staples 5,915,922 10% 1,271,256 2% 4,644,666

Energy 3,108,175 5% 7,232,871 12% (4,124,697)

Financials 3,648,364 6% 5,251,683 9% (1,603,319)

Health Care 3,815,967 6% 9,847,606 16% (6,031,640)

Industrials 8,543,347 14% 3,919,933 7% 4,623,414

Information Technology 15,534,502 26% 18,590,230 31% (3,055,728)

Materials 3,547,639 6% 1,305,545 2% 2,242,094

Telecommunication Services 1,363,715 2% - 0% 1,363,715

Utilities - 0% - 0% -

Sector misweights are a contributor to the active risk of a transition. Our algorithmic trading can opportunistically addresses sector misweights within a beta neutral, implementation benchmark strategy. By utilizing legacy names to organically hedge target performance, the range of possible outcomes is minimized, thus allowing additional time to source liquidity and minimize market impact costs.

(10,000,000)

(5,000,000)

-

5,000,000

10,000,000

15,000,000

20,000,000

Aggre

gate

Asse

ts

Consum

er

Dis

cre

tion

ary

Consum

er

Sta

ple

s

Energ

y

Fin

ancia

ls

Health C

are

Ind

ustr

ials

Info

rmation T

echn

olo

gy

Ma

teria

ls

Tele

co

mm

unic

ation

Serv

ice

s Utilit

ies

GICS Sector Exposure

8




MARKET CAP

Bucket Sell Value Buy Value

Micro - -

Small - -

Mid - -

Large 60,381,971 59,743,934

Total 60,381,971 59,743,934

Global market capitalization characteristics are viewed in the context of their contribution to systematic return and risk. Smaller capitalization stocks tend to have less reliable future cash flows but also exhibit earnings growth at a more rapid pace. Price variability attributable to this characteristic can be quantified through a multi-factor regression model (typically denoted as the “Size” factor). The trading algorithms and associated risk models we use optimize the trading strategy and horizon to minimize the value at risk of the transition portfolio while maximizing the efficiency of execution. These models incorporate additional metrics such as spread improvement, liquidity budgets, and relative symmetrical risk tolerance.

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

Micro Small Mid Large

Tradelist Market Cap

Sell Value Buy Value

9




WORLD EXPOSURE PROFILE

Code Exchange Sell Buy Net Taxes + Fees Notes

AU ASX - - - -

AR Argentina - - - -

AV Vienna - - - -

BB EN Brussels - - - -

BZ Sao Paulo - - - -

CB Bogota - - - -

CH Shanghai - - - -

CI Sant. Comerc - - - -

CN Toronto - - - -

CP Prague-SPAD - - - -

DC Copenhagen - - - -

EY Egypt (EGX) - - - -

FH Helsinki - - - -

FP EN Paris - - - -

GA Athens - - - -

GR Xetra - - - -

HB Budapest - - - -

HK Hong Kong - - - -

ID Dublin - - - -

IJ Indonesia - - - -

IM BrsaItaliana - - - -

IN Natl India - - - -

IT Tel Aviv - - - -

JP Tokyo /JASDAQ - - - -

KS Korea SE - - - -

LI London Intl - - - -

LN London - - - -

MC Casablanca - - - -

MK Kuala Lumpur - - - -

MM Mexico - - - -

NA EN Amsterdam - - - -

NO Oslo - - - -

NZ NZX - - - -

PA Pakistan - - - -

PL EN Lisbon - - - -

PR Lima - - - -

PM Philippines - - - -

PW Warsaw - - - -

RM MICEX Main - - - -

RU RTS - - - -

SJ Johannesburg - - - -

SM Continuous - - - -

SP Singapore - - - -

SS Stockholm - - - -

TB Bangkok - - - -

TI Istanbul - - - -

TT Taiwan / GreTai - - - -

US NYSE/NASDAQ 60,381,971 59,743,934 638,037 1,353

VC Caracas - - - -

VX SIX Swiss Ex - - - -

Differences in country exposures during a transition introduce trade timing risk, where buys and sells may not occur simultaneously. To avoid leveraging the portfolio, we apply trade scheduling to maintain beta neutrality throughout the transition horizon.

10




GLOBAL INDEX ROLLING 10-DAY HISTORICAL PRICE VOLATILITY

GLOBAL INDEX 30-DAY AT-THE-MONEY PUT OPTION IMPLIED VOLATILITY

MAJOR EXCHANGE (NYSE & LSE) VOLUME TREND

A snapshot of recent volatility levels for three major equity indices.

A snapshot of forward-looking volatility levels for three major equity indices.

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6.00

8.00

10.00

12.00

14.00

16.00

18.00

1/25 1/26 1/27 1/28 1/29 1/30 1/31 2/1 2/2 2/3 2/4 2/5 2/6 2/7 2/8 2/9 2/10 2/11 2/12 2/13 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21 2/22 2/23 2/24 2/25Date

Rolling 10-Day Historical Volatility

S&P 500 MSCI EAFE MSCI EMI

0.00

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4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

1/25 1/26 1/27 1/28 1/29 1/30 1/31 2/1 2/2 2/3 2/4 2/5 2/6 2/7 2/8 2/9 2/10 2/11 2/12 2/13 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21 2/22Date

30-Day ATM Put Option Implied Volatility

S&P 500 MSCI EAFE MSCI EMI

0.00

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1000.00

1200.00

1400.00

1600.00

1/25 1/26 1/27 1/28 1/29 1/30 1/31 2/1 2/2 2/3 2/4 2/5 2/6 2/7 2/8 2/9 2/10 2/11 2/12 2/13 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21 2/22Date

Major Exchange Volume Trend

NYSE Volume LSE Volume

11




HISTORICAL 20-DAY TRACKING ERROR

Annual Multifactor Risk Projection (%) 3.22

Predicted 20-Day Risk Expansion (%) +/- 0.91

Historical 20-Day Tracking Error (%) 0.27

ANALYSIS NOTES

Our portfolio managers closely review each holding submitted for analysis. In preparing the analysis, we may have made assumptions regarding trading venue, convertibility, liquidity and impact as well as omitted securities that are no longer active due to delisting, suspension, acquisition, expiration, or other.

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

2/4 2/5 2/6 2/7 2/8 2/9 2/10 2/11 2/12 2/13 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21 2/22 2/23 2/24

Po

rtfo

lio

Retu

rn

Date

Historical 20-Day Tracking Error

TE LEG Return TGT Return

12



GWINNETT COUNTYPRE-TRADE: U.S. EQUITY TRANSITIONBase: USD

3/1/2013

CONTACT INFORMATION

Mark A. Keleher, CFA Christine Carr Smith

Chief Executive Officer President

Tel: + 1 415 975 2334 Tel: + 1 415 267 1262

Bob Brinker Jamie Cashman, CFA

Managing Director, Head of Sales, North America Managing Director & Global Head of Marketing

Tel: + 1 412 234 7996 Tel: + 1 215 553 4436

Joseph Serzan

Vice President, North America Sales

Tel: + 1 212 635 7928

GLOSSARYBid/Offer Spread

External Cross

Implementation Shortfall

In-Kind Transfer

Internal Cross

Legacy Portfolio

Market Impact

Open Market Trades

Opportunity Costs

Residual Risk

Slippage

Target Portfolio

Transition

Transition Management

The liquidity concession given to a dealer or specialist when purchasing or selling securities.

External crosses utilize crossing networks such as ITG's POSIT (Portfolio System for Institutional

Trading) which electronically and anonymously match institutional buyers and sellers. External

crosses are facilitated through MBSC Securities Corporation for execution on external crossing

networks.

If the goal of the Plan is to costlessly transition from the legacy portfolio to the target

portfolio , Implementation Shortfall is the arithmetical difference between the return on the actual

portfolio and the return on the target portfolio. A cost estimate using Implementation Shortfall

represents the predicted mean of a Gaussian distribution and is generally accompanied by a

corresponding measure of risk.

The free delivery of assets that are common between the legacy and target portfolios .

Internal crosses are performed using a proprietary Bank of New York Mellon crossing system. The

internal cross takes advantage of the trading flow generated by The Bank of New York Mellon's

assets under management that are Department of Labor eligible to participate in such crossing

opportunities.The asset set from which the Plan seeks to migrate.

An additional price concession is necessary to execute shares above the dealer or specialist's

standard displayed quote.

When internal and external crossing mechanisms do not provide optimal liquidity, BNY Mellon

Beta & Transition Management purchases or sells securities, on behalf of the Plan, on the Open

Market.The costs associated with delaying a transaction in the hope of receiving a better price later. As a

rule of thumb, the longer a trade takes to complete, the higher the expected opportunity cost.

When the target portfolio is compared to the legacy portfolio , there remains a component not

held in common, the residual. (This is by definition---otherwise, there would be no reason to

transition!) The target, legacy, and residual each have their own respective historical return and

volatility profiles. In transition management, the residual risk of a legacy portfolio to a target

portfolio is the primary driver of opportunity costs.

Because markets are moving when the transition occurs, it is unlikely that the value of the legacy

and target portfolios will be the same after the transition as before the transition. The slippage

measures the drift of the two portfolios.

The asset set to which the Plan would like to migrate.

An asset shift as simple as a portfolio liquidation to cash or as complex as a comprehensive Plan

restructuring. Asset allocation changes, investment strategy changes, and investment manager

changes may all necessitate an asset transition.

A systematic, controlled process that utilizes all available sources of liquidity to simultaneously

minimize the total cost while managing the overall risk of the transition.



GWINNETT COUNTYPRE-TRADE: U.S. EQUITY TRANSITIONBase: USD

3/1/2013

IMPORTANT INFORMATION

The use of derivatives such as futures and swaps involves risks different from, or possibly greater than, the risks associated with investing directly in the

underlying assets. Derivatives can be highly volatile, illiquid and difficult to value, and there is the risk that changes in the value of a derivative held by an

investor will not correlate with the underlying instruments or the other portfolio investments. Swaps also involve the risk that a loss may be sustained as a

result of the failure of the counterparty to make required payments or otherwise comply with the contract’s terms.

This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is

unlawful or not authorized. Past performance is not a guide to future performance.

BNY Mellon is classified as a Schedule III Bank under the Bank Act (Canada). In Ontario, as a Schedule III Bank, pursuant to the Ontario Securities Act, BNY

Mellon is exempt from Ontario's adviser registration requirements where it acts as an adviser in accordance with the Bank Act without restriction. For

transition management services BNY Mellon relies on exemptive relief granted under the securities legislation of Saskatchewan and Nova Scotia. The relief,

granted December 28, 2007 can be relied on in Quebec, Manitoba, Prince Edward Island, New Brunswick and Newfoundland and Labrador. BNY Mellon also

relies on an exemption to provide transition management services in British Columbia and Alberta granted on June 6, 2003 by the British Columbia Securities

Commission and the Alberta Securities Commission.

BNY Mellon Beta & Transition Management operates as a branded entity contracting under legal banking entity The Bank of New York Mellon, a subsidiary of

The Bank of New York Mellon Corporation. MBSC Securities Corporation, a Bank of New York Mellon Corporation and member FINRA, will generally be the

introducing broker and will act strictly in an agency capacity for equity securities. Brokerage services, as performed during a portion of the transition

management process, are provided by the introducing broker and not BNY Mellon. Securities directly traded by the broker are not deposits or other

obligations of BNY Mellon, are not guaranteed by the BNY Mellon and are not insured by the Federal Deposit Insurance Corporation or any other state or

federal agency. The securities being transitioned may lose value. This document should not be published in hard copy, electronic form, via the web or in any

other medium accessible to the public unless authorized by BNY Mellon or MBSC Securities Corporation.

The risks for each transition event vary according to client goals, strategy and market climate. The Bank of new York Mellon ("BNY Mellon") is not responsible

for the typographical errors or errors of omission and we cannot guarantee that all information is accurate or complete. Any results or information presented is

based on simulated or hypothetical performance results have certain inherent limitations. Unlike the results shown in an actual performance record, any

simulated or hypothetical results do no represent actual trading. Also, because trades have not actually been executed, simulated results may have under-or

over-compensated for the impact, if any, of certain market factors, such as lack of liquidity.

When FX transactions are placed through BNY Mellon, BNY Mellon is acting in its capacity as an FX "counterparty" or “principal”, buying currency from or

selling currency for its own account and not acting as a fiduciary or adviser to the client. BNY Mellon does not enter the FX market to trade on behalf of or for

the benefit of clients. Rather, BNY Mellon enters into a transaction directly with the client, taking the currency position into its own trading book where it is

aggregated with all of BNY Mellon’s other foreign currency positions. As a result, BNY Mellon assumes the risk of price movements in the currency, including

possible losses. Because of its role as a principal, the fiduciary obligation and decision-making for these FX transactions – including decisions to participate

in the standing instruction program – rests with the client, and BNY Mellon acts only at their direction. To reiterate, BNY Mellon, in its capacity as FX

counterparty, is not acting as a fiduciary or adviser to the authorized representative or the client.

No client is required to direct us to place FX transactions with BNY Mellon. Where a client instructs us to direct FX transactions to third parties, we will

transact with such (unaffiliated) third party counterparties on an agency basis. In this scenario there is no guarantee on the price received. BNY Mellon shall

be entitled to an additional fee for FX transactions equal to an agreed to +/- basis points amount of the total value of the notional value of the assets traded.

When FX is transacted by such third party dealer, forward points may be applied to forward transactions by such third party. However, some markets do not

allow for open market currency trading. Typically markets that have a dominant non-deliverable forward market are the ones with currency restrictions. In

these markets, Beta & Transition Management does not have the option of trading with multiple counterparties. Since there are no practical alternatives, Beta

& Transition Management places spot trades through the custodian or local sub-custodian of the account in these restricted markets. In the case of restricted

currencies, Beta & Transition Management does not negotiate foreign currency rates or commissions with such custodian or sub-custodian, or otherwise

monitor or evaluate the FX rates assigned by the custodian or sub-custodian. Such rates may not be the best available for similar transactions.



Current Allocation:

3/1/2013 2/26/2103 12/31/2012 12/31/2011 12/31/2010 12/31/2009 Target

MTD Balance MTD Balance Change YTD Balance YTD Balance YTD Balance YTD Balance % Benchmark Variance

Atlanta Capital $66.8 $67.1 -$0.3 $62.0 $55.2 $50.1 $39.9 8.0% 7.5% 0.5%

Barrow Hanley $101.5 $102.1 -$0.6 $95.9 $83.2 $71.8 $64.6 12.1% 12.5% -0.4%

Mid-Cap $0.0 $0.0 $0.0 $0.0 $50.2 $52.7 $41.9 0.0% 0.0% 0.0%

William Blair $28.0 $28.0 $0.0 $26.2 $0.0 $0.0 $0.0 3.3% 2.5% 0.8%

Fairpointe $30.0 $30.2 -$0.2 $27.4 $0.0 $0.0 $0.0 3.6% 2.5% 1.1%

Vaughan Nelson $29.4 $29.8 -$0.4 $27.0 $0.0 $0.0 $0.0 3.5% 2.5% 1.0%

Ranier Investment $99.2 $99.9 -$0.7 $93.9 $80.9 $76.6 $64.8 11.8% 12.5% -0.7%

ING Bonds $163.6 $162.9 $0.7 $163.8 $266.0 $217.8 $201.8 19.5% 22.5% -3.0%

Ryan Labs $105.2 $104.8 $0.4 $105.1 $0.0 $0.0 $0.0 12.6% 12.5% 0.1%

Dreyfus International Bond $22.9 $22.9 $0.0 $23.2 $2.5 $0.0 $0.0 2.7% 2.5% 0.2%

Templeton Global Bond $24.2 $24.2 $0.0 $23.9 $2.5 $0.0 $0.0 2.9% 2.5% 0.4%

1607 Capital Partners $121.4 $122.1 -$0.7 $118.0 $88.6 $101.5 $76.8 14.5% 15.0% -0.5%

INVESCO REIT $41.4 $41.4 $0.0 $38.7 $30.7 $28.1 $18.5 4.9% 5.0% -0.1%

Cash Management** $3.9 $6.0 -$2.1 $1.7 $8.7 $16.9 $0.9 0.5% 0.0% 0.5%

Total Portfolio $837.5 $841.4 -$3.9 $806.8 $668.5 $615.5 $509.2 100.0% 100.0% 0.0%

Equities % of Total $513.8 61.6% **

Bonds % of Total $319.8 38.4% **

Cash Only % of Total $3.9 0.5%

$837.5

** Cash is excluded from the Calculation of the Asset Mix between Equities and Bonds

January January

2013 YTD, 2013

Contributions

OPEB Account $2,080,988 $2,080,988

OPEB Extra Contribution in Excess of ARC 2011 $0 $0

Pension Extra Contribution $0 $0

Pension Extra Contribution $0 $0

Pension Account $5,072,036 $5,072,036

Total Contributions $7,153,024 $7,153,024

Disbursements

Expense

OPEB Account $80,329 $80,329

Pension Account $652,090 $652,090

Total Expenses $732,419 $732,419

Payments To Participants

OPEB Account $0 $0

Pension Account $4,185,263 $4,185,263

Total Payments $4,185,263 $4,185,263

Total Disbursements

OPEB Account $80,329 $80,329

Pension Account $4,837,353 $4,837,353

Total Payments $4,917,682 $4,917,682

Net Cash Without Extra Contributions

OPEB Account $2,000,659 $2,000,659


Total Net Cash $2,235,341 $2,235,341

Net Cash With Extra Contributions

OPEB Account $2,000,659 $2,000,659


Total Net Cash $2,235,341 $2,235,341

Pension Balances, December 31, 2012 $741,998,871.22 88.97%

OPEB Balances, November 30, 2012 $91,929,918.97 11.02%

Rabbi Trust, November 30, 2012 $35,606.11

Total Balances at Month-end $833,964,396.30

Pension/OPEB Trust

Asset Allocation & Monthly Cash Flow Statement

3/4/2013

Combined Cash Flow

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