MINUTES Meeting of the Investment Committee of the … copy of NEPC’s presentations Real Estate...

MINUTES

Meeting of the Investment Committee of the Board of Trustees of the

State Universities Retirement System Thursday, December 7, 2017, 8:30 a.m. State Universities Retirement System

Northern Trust Global Conference Center – 1st Floor

50 S. LaSalle St., Chicago, IL

The following trustees were present: Mr. Tom Cross, Mr. Dennis Cullen, Dr. John Engstrom, Dr. Fred Giertz, Mr. Paul R. T. Johnson Jr., Mr. Craig McCrohon, Dr. Steven Rock and Mr. Antonio Vasquez. Others present: Mr. Martin Noven, Executive Director; Mr. Doug Wesley, Chief Investment Officer; Ms. Bianca Green, General Counsel; Ms. Kimberly Pollitt and Mr. Shane Willoughby, Senior Investment Officers; Ms. Kristen Houch, Legislative Liaison; Ms. Kelly Carson and Ms. Annette Ackerman, Executive Assistants; Ms. Mary Pat Burns of Burke, Burns & Pinelli; Mr. Kevin Leonard, Mr. Mike Yang and Ms. Kristin Finney-Cooke of NEPC, Mr. Elliott Mallen, Mr. Alexandro Monzon and Mr. Jake Rosner of Unite Here; Ms. Maria Isabel Esporza, Ms. Melissa Guereca and Ms. Juane Sanchez of Homewood Suites; and Ms. Kassandra Hernandez of Financial Daily News. Investment Committee roll call attendance was taken. Trustee Cozzi, absent; Trustee Cross, present; Trustee Cullen, present; Trustee Giertz, present; Trustee Johnson, present; Trustee McCrohon, present; and Trustee Rock, present Trustee Dennis Cullen made the following motion:

• That the trustees be allowed to participate via conference call for all meetings on December 7-8, 2017, pursuant to Section 7(c) of the Open Meetings Act.

Trustee Fred Giertz seconded and the motion carried with all trustees present voting in favor.

PUBLIC COMMENT

Mr. Elliott Mallen of Unite Here and Ms. Maria Esparasa of Homewood Suites addressed the board regarding a labor situation at the Homewood Suites downtown Chicago. Brookfield Asset Management, a company with which SURS is invested, is also an indirect investor in the Homewood Suites property. Mr. Mallen and Ms. Esparasa requested the SURS Board of Trustees reach out to Brookfield to quickly and amicably settle these disputes.

APPROVAL OF MINUTES

Trustee Cullen presented the minutes from the Investment Committee meetings of October 19, 2017 and November 9, 2017. Trustee Steven Rock made the following motions:

• That the minutes from the October 19, 2017 Investment Committee meeting be approved as presented.

• That the minutes from the November 9, 2017 Special Investment Committee meeting be

approved as presented. Trustee Giertz seconded and the motions carried with all trustees present voting in favor.

APPROVAL OF CLOSED MINUTES

Trustee Cullen presented the closed minutes from the Investment Committee meeting of September 14, 2017. Trustee Paul Johnson made the following motion:

• That the closed session minutes from the October 19, 2017 Investment Committee meeting be approved as presented and remain closed.

• That the closed session minutes from the November 9, 2017 Investment Committee meeting be approved as presented and remain closed.

Trustee Giertz seconded and the motion carried with all trustees present voting in favor.

CHAIRPERSON’S REPORT Trustee Cozzi was not present; there was no chairperson’s report.

CHIEF INVESTMENT OFFICER REPORT

Mr. Doug Wesley provided preliminary performance returns to the board for the month of November. Mr. Wesley noted that while still waiting on some final numbers, SURS will be up one percent for the month. He also stated this is the first time SURS has closed above $19 billion dollars in assets. Mr. Wesley discussed Public Act 100-0452 and explained that this new legislation passed in November and requires consultants to disclose certain information on an annual basis.

REAL ESTATE PACING REVIEW AND MARKET OUTLOOK

Mr. Mike Yang presented the real estate market update including SURS portfolio construction, plan overview and private real estate pacing plan. The board reviewed the annual pacing plan for the Real Estate Portfolio.

A copy of NEPC’s presentations titled “Real Estate Market Update and 2018 Pacing” is incorporated as part of these minutes as Exhibit 1.

REAL ESTATE ASSET CLASS REVIEW

Mr. Shane Willoughby presented the real estate asset class review to the board. In the review, Mr. Willoughby discussed where the portfolio currently stands and he also provided historical and current context to various facets of the portfolio, including performance. Mr. Willoughby and Mr. Yang addressed questions from trustees. Trustee Johnson made the following motions:

• The Investment Committee recommends that based on the recommendation of staff and

SURS investment consultant, staff be able to coordinate a full redemption from the UBS Trumbull Property Fund and use proceeds to invest $300 million in core-plus, open-end real estate fund(s).


SURS investment consultant, the board authorize staff to conduct a search for a core-plus open-ended real estate fund(s).

Trustee Rock seconded and the motions carried with all trustees present voting in favor. A copy of staff’s presentation titled “Real Estate Asset Class Review” is incorporated as part of these minutes as Exhibit 2.

CONSIDERATION OF NON-CORE REAL ESTATE

Mr. Willoughby presented key characteristics for Brookfield Strategic Real Estate Partners Fund III including performance metrics relating to previous Brookfield funds. Included in the presentation were recommendations and insights from SURS staff relating to the background, advantages and concerns of the proposed investment. At the end of his presentation, Mr. Willoughby introduced Ms. Kate Bizga and Mr. Lowell Baron of Brookfield who presented a summary of their funds and addressed questions from trustees. Trustee Johnson made the following motion:

• The Investment Committee recommends that based on the recommendation of staff and SURS investment consultant, a commitment of $35 million be authorized, contingent on successful contract negotiations, to Brookfield Strategic Real Estate Fund III LP.

Trustee Giertz seconded and the motion carried with majority of trustees present voting in favor. Trustee Mark Cozzi opposed. A copy of staff’s memorandum titled “Executive Summary – Brookfield III Fund Recommendation” and NEPC’s Tear Sheet titled “Brookfield Strategic Real Estate Partners III” are incorporated as part of these minutes as Exhibit 3 and Exhibit 4. Brookfield’s Presentation and disclosure statement are incorporated as part of these minutes as Exhibit 5 and Exhibit 6.

COURTLAND PARTNERS SIDE LETTER CONSENT Mr. Willoughby notified the board of the recent changes at Courtland Partners; specifically Anthony Fragapane’s departure. Because of his departure, Courtland is now requesting the appointment of Mike Murphy as the successor representative for Courtland. Trustee Johnson made the following motions:


SURS investment consultant, SURS execute the consent appointing Michael P. Murphy as successor representative to Anthony Fragapane.

Trustee Rock seconded and the motion carried with all trustees present voting in favor. A copy of staff’s memorandum titled “Courtland Partners Update” and Courtland’s letter titled “IL SURS GPF Consent” are incorporated as part of these minutes as Exhibit 7 and Exhibit 8.

HEDGE FUND FOLLOW-UP DISCUSSION

Mr. Wesley addressed questions posed by the board regarding Hedge Fund Day and the Newport Monarch Fund; specifically covering the risk levels of the portfolios, investment strategies and the turnover of underlying managers. Mr. Wesley provided PAAMCO’s detailed response and noted that staff believes that PAAMCO’s risk/return and implementation style are consistent with the mandate described in the RFP process. A copy of staff’s memorandum titled “Hedge Fund Day FollowUp” and PAAMCO responses titled “Newport Monarch SURS Question Responses Nov 2017” are incorporated as part of these minutes as Exhibit 9 and Exhibit 10.

OPTIONS SEARCH UPDATE

Mr. Wesley updated the board on the recent search for Equity Index Option Risk Premia Capture Strategies noting that SURS received 27 responses to the RFP for options strategy providers. Staff and NEPC are currently in the process of reviewing the responses and will narrow the list to a smaller group of semifinalists. Mr. Wesley asked that any trustees interested in attending the interviews to contact staff for details. Mr. Wesley stated in order to fund newly hired options manager(s) in a timely manner, the hedge fund of fund providers require notice to make the cash available.

Trustee Johnson made the following motion:

• The Investment Committee recommends that based on the recommendation of staff and SURS investment consultant, SURS coordinate redemptions to fund options strategies, as needed, from hedge fund of fund managers Prisma and PAAMCO in approximately the following amounts:

o PAAMCO - $245 million to be withdrawn o Prisma - $115 million to be withdrawn

Trustee Rock seconded and the motion carried with all trustees present voting in favor. A copy of staff’s memorandum titled “Options Search Update December 2017” is incorporated as part of these minutes as Exhibit 11.

PROCUREMENT POLICY DISCUSSION

Discussion of this agenda item was deferred to a later date.

INVESTMENT POLICY DISCUSSION

Ms. Kim Pollitt provided the annual review of diversity goals to the board and commented on the recommended changes to the diversity brokerage goals.

Trustee Johnson made the following motion:


SURS investment consultant, the revised Appendix 10 to the Investment Policy document for the defined benefit plan be approved, as presented.

Trustee Rock seconded and the motion carried with all trustees present voting in favor A copy of staff’s memorandum titled “Review of Diversity Goals Dec 2017” and “Revised Diversity Goal - redline version – Dec 2017” are incorporated as part of these minutes as Exhibit 12 and Exhibit 13.

REVIEW OF INVESTMENT PERFORMANCE

Mr. Kevin Leonard of NEPC provided a brief update to the board with final numbers regarding total fund performance through September 30, 2017. A copy of NEPC’s presentation titled “Q3 2017 Investment Performance Analysis” is incorporated as part of these minutes as Exhibit 14.

INFORMATIONAL ITEMS NOT REQUIRING COMMITTEE ACTION

The following items were provided for reference and are incorporated as a part of these minutes:

1. Exhibit 15 – General Consulting Search Update 2. Exhibit 16 – Defined Contribution Consultant Search Update 3. Exhibit 17 – Manager Status Review 4. Exhibit 18 – Performance Dashboards 5. Exhibit 19 – Qualitative Dashboards 6. Exhibit 20 – Release of the Governor’s Report 7. Exhibit 21 – Compiled SURS Report to the Governor 2017 8. Exhibit 22 – Index Manager Summary 9.30.17 9. Exhibit 23 – SURS Executive Summary Risk Memo 9.30.17 10. Exhibit 24 – SURS Executive Summary Risk Report 9.30.17 11. Exhibit 25 – SURS Summary Work Plan FY 18-19 12. Exhibit 26 – 2018-2019 Schedule of Meeting Dates

There was no further business brought before the committee and Trustee Johnson moved that the meeting be adjourned. The motion was seconded by Trustee Tom Cross and carried with all trustees present voting in favor.

Respectfully submitted,

Mr. Martin Noven

Secretary, Board of Trustees MMN/kc

State Universities Retirement System of IllinoisReal Estate Market Update and 2018 Pacing

November 2017

Exhibit 1

Contents

Presentation:1. Real Estate Market Update2. SURS’ Real Estate Portfolio Construction and Plan Overview3. SURS’ Detailed Private Real Estate Pacing Plan

Appendix1. Alternative Investment Disclaimer

2

Exhibit 1

1. Real Estate Market Update

Exhibit 1

Real Estate General Market Thoughts and 2017 Implementation Views

General Market Thoughts• Core/REIT market environment normalized

– Real estate fundamentals (rent growth, occupancy, net absorption) remain strong; however, valuations are high on an absolute and relative basis

– Private core returns have begun to moderate; REIT sector has been volatile and pricing remain at historically high FFO multiples

– Expectation of rising interest rates have been baked into existing valuations but excess cap rate expansion (beyond general expectations) remain a risk

• Opportunity remains in non-core strategies

– In the US, we continue to favor strategies with a shorter duration (more emphasis on cash flow) and/or managers that have niche areas of expertise

– Outside the US, Europe remains a relatively attractive opportunity for asset-focused managers who are not making macro bets on growth; select distressed opportunities may exist in emerging markets

Strategy Outlook Commentary

CorePrivate Neutral Hold to target allocation and build new exposure over time to avoid

timing risk; assets in prime locations should better weather a downturn

Public REITs Neutral Hold to target allocation; if under-allocated leg into a target allocation to minimize entry point risk; expect volatility in the near term

Non-Core

Value-Add

Positive

Flight to quality will continue to favor US real estate; emphasize more defensible demographically-driven sectors and shorter duration strategies; opportunities to capitalize on distress or capital markets inefficiencies in Europe and select emerging markets may exist

Opportunistic

Real Estate Debt PositiveMezzanine strategies offer attractive risk-adjusted returns with an emphasis on current income; low interest rate environment is challenging for senior loans

Implementation Views

4

Exhibit 1

Global Synchronized Expansion

• Asia, Europe and North America broadly in expansion

• Pockets of weakness remain in emerging market economies

CURRENT STATUS OF GLOBAL ECONOMIES

Source: Moody’s Analytics, AEW

5

Exhibit 1

Generally Healthy US Market

• Energy based economies generally starting to recover from oil price crash

• West Virginia and Alaska lagging

• Connecticut and Kansas are true outliers:

• Taxes are too high in CT and too low in KS

Source: Moody’s Analytics, AEW

CURRENT STATUS OF STATE ECONOMIES

6

Exhibit 1

• Market remains in Expansion Phase, although 2017 likely closer to peak than trough

• Fundamentals remain strong, signs of hyper-supply are not yet evident

• Capital markets will be more material driver of valuations in the near-term

US Real Estate Market Cycle: Where are We?

Real Estate Market Cycle

Phase II: Expansion Phase III: Hyper-supply

Phase IV: RecessionPhase I: Recovery

• Tightening Occupancy• Accelerating Rent Growth• New Construction Wave

• Declining Vacancy• Rent Stabilization • No New Construction

• Demand/Supply Imbalance

• Negative Absorption• Increasing Vacancy• Falling Rents

• High Vacancy• Low Rents

Long-Term Occupancy

2008

2010

2012

2014

2017?

7

Exhibit 1

US Core Real Estate

• Core real estate returns robust following GFC but 2017 normalizing – Cap rate compression/capital appreciation has driven above-average core returns in this expansion cycle

– Trailing 5-year returns have averaged 11.6% for the ODCE and 10.1% for the FTSE NAREIT Index

– Private core (ODCE) normalizing and have generated a 1-year trailing gross total return of 7.7%

– REITs have generated a 1-year trailing gross total return of 2.6%, with high volatility

• 5-7 year core total returns expected to be below historical averages– Positive: Capital markets are healthy and property fundamentals remain solid; new GICS sector/FIRPTA/EU

instability could continue to be tailwind for US real estate

– Concern: Valuations are high and capital flows to US RE will keep deal competition elevated, rising interest rate environment may reset cap rates and place downward pressure on valuations

ODCE Total (Net) Return

Source: Bloomberg/FTSE as of September 30, 2017; NCREIF as of September 30, 2017.

FTSE-NAREIT All Equity REITs

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

FTSE‐NAREIT All Equity REIT: 20 Yr Avg = 10.3%

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

ODCE Total Return: 20 Yr Avg = 9.8%

8

Exhibit 1

0

50

100

150

200

250

300

350

400

450

500

NPI Income Spread to 10‐Yr Treasury

US Core Income Yields and Treasury Rates

• Elevated Absolute and Relative Values– Absolute income yields (or cap rates) have steadily declined since 2010 (reaching all-time lows)

– Cap rate compression in major gateway cities are at all-time lows (4% range)

– Relative NPI income yield spread of ~235bps to US Treasuries below historical average of 264bps

• Capital Flows to US Remains Robust – FIRTPA tax law change could spur increased foreign capital flows to US real estate

– Additionally, Brexit/European volatility may provide continued flight to quality in US

Income Yield Spread to 10-Yr. TreasuryIncome Yield vs. 10-Yr. Treasury

Source: NEPC analysis, NCREIF; data as of September 30, 2017, and US Treasury data as of September 30, 2017.

Spread compressed due to

rising 10-Yr Treasuries

LT Average

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

NPI Income (Rolling 1‐Yr) 10‐Year Treasury

9

Exhibit 1

(60%)

(50%)

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20170.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

2Q02 4Q03 2Q05 4Q06 2Q08 4Q09 2Q11 4Q12 2Q14 4Q15 2Q17

REIT FFO Multiples

US REIT Valuation Metrics

• REITs trading at highest point relative to NAV since August 2016– FFO multiples analogous to P/E multiples

– Higher multiple may indicate high future return expectations… or relative attractiveness to other assets

– Brexit aided capital flows to US REITs midyear as they traded at premiums to NAV but has since retreated back to trading at a discount to NAV, likely influenced by uncertainty of new administration

– Newly created GICS REIT Sector may benefit from reduced volatility of being extracted from the Financials Sector, although high volatility from investor sentiment still very much evident early on

REIT Premium / Discount to NAV

REITs trading at premium to NAV near historical

averageREITs trading at

elevated FFO Multiples by historical standards

Source: Wells Fargo Securities; data as of November 10, 2017.

LT AverageLT Average

10

Exhibit 1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Apartment 4.2% 2.5% -1.3% -6.5% 5.1% 5.0% 3.9% 3.3% 5.4% 4.5% 0.2% 2.2% 0.2% -0.7% 0.5% 2.8% 3.3%Industrial 4.9% 3.3% 0.5% -10.4% -6.7% -0.6% 1.0% 3.6% 4.8% 5.3% 6.8% 4.7% 2.8% 0.3% 0.0% 1.8% 2.4%Retail 3.4% 4.2% -2.1% -4.8% -5.1% -2.0% -0.2% -0.2% 0.9% 1.3% 2.7% 2.7% 2.0% 0.1% 0.3% 1.4% 1.9%Office 9.1% 10.1% -11.4% -4.9% 0.0% 3.0% 2.5% 2.9% 5.2% 3.0% 2.0% 2.2% 0.2% -1.0% 0.0% 1.1% 1.6%

(15.0%)

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

Real Estate: Core Portfolios Should Remain Diversified

Rent Growth

Source: CBRE Econometrics, NEPC Analysis

Past performance is no guarantee of future results

Forecast

Office IndustrialMultifamily

• Diversified portfolio of property types allows managers to take advantage of shifting cycles and “cherry pick” the best sectors, while single-asset class managers have a narrower bandwidth to play in regardless of if other sectors may yield more attractive investments

11

Exhibit 1

Real Estate: Selective Non-Core US Opportunities

• Invest in Demographically Driven Property Sectors vs. GDP Driven Property Sectors

– Although major property sector rental rates have generally recovered and even surpassed 2007 levels, most property sectors are cyclical by nature

– Demographically driven sectors (e.g. Senior Housing, Apartments) tend to be more protected in downturns verses GDP driven sectors (e.g. Office, Retail)

• Multiple Expansion Potential– Invest in “emerging” assets

that have income multiple expansion potential as they gain acceptance into mainstream asset class

– Emerging asset types include self-storage, senior housing, and data centers

“Emerging” Institutional Asset Types

Source: CBRE, JLL, Co-Star

Self‐storageStudent housingJapan logistics '13

Pioneering Investors

Professionalization Performance Measurement Convergence Acceptance

China logisticsand senior housing

U.S. apartmentsU.K. retail,warehouses

Data centersJapan logistics '16

Pre‐Institutional

Emerging ‐Institutional

Core Insitutional

IncomeMultiple

Low

High

Rent Index

80

90

100

110

120

130

140

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Office Industrial Retail Apartment Senior Housing

12

Exhibit 1

2. SURS’ Real Estate Portfolio Construction and Plan Overview

Exhibit 1

• SURS’ current real estate exposure is as follows:– $1.05 billion of private real estate net asset value (5.7% of total plan assets)– Additionally, SURS’ has approximately $293 million of uncalled commitments (1.5% of plan assets) – $715 million of public (REITs/REOCs) real estate net asset value (3.8% of total plan assets)

• SURS has 9.5% total exposure to real estate currently and is on pace to achieve its 10% target allocation by 2018

• SURS’ long-term target real estate allocations are as follows:– Private real estate: 6.0% of total plan assets– Public (REITs) real estate: 4.0% of total plan assets

• SURS’ current sub-strategy allocations are as follows:– 40% in REITs– 36% in Private Core/Core-Plus– 24% in Private Non-Core (Value-Add/Opportunistic and Debt)

• To achieve this 6% private real estate target, NEPC recommends the following private allocations:

– 60% private core real estate (current exposure 74%) – 17.5% private value-add real estate (current exposure 13%)– 17.5% private opportunistic real estate (current exposure 13%)– 5% private debt real estate (no current exposure)

Real Estate Program Overview

Analysis based on 9/30/2016 plan data and 6/30/16 fund data.

14

Exhibit 1

• NEPC recommends the following investment pacing to achieve the outlined private real estate targets:

– 2018: Diversify towards 60% core/core-plus /40% non-core target allocation• Redeem approximately $400M from core funds (UBS)• Rebalance $300M of core proceeds to core-plus real estate • Commit up to $60M to non-core real estate

– 2019: Maintain non-core commitment pace • Commit up to $60M to non-core real estate

– 2020: Commit up to $100M to private non-core (value-add/opportunistic) and up to $30M to debt

• Additional Considerations– Reduction of public REIT allocation will dampen volatility of the real estate portfolio but will also

increase illiquidity – Consider Global Secondary RE Funds as part of non-core allocation to mitigate J-Curve and provide

vintage year diversification of underlying funds

• These recommendations are intended to be used as a directional guideline based on market conditions and revisited annually

Real Estate Program Overview (Cont.)


15

Exhibit 1

Portfolio Construction – Balance Income vs. Appreciation


• Introducing core-plus within the core allocation at current stage of the real estate cycle may help provide higher total return potential with moderately more risk

16

Exhibit 1

Relative Expected Risk Return Profile of Real Estate Strategies

Illustrative Risk / Return Profile

Expected RiskLow High

Low

Hig

h

Current Income Return Driver

Notes:- Debt-related strategies can span the illustrative risk / return spectrum depending on the specific strategy- Manager-specific risk, operations and leverage can skew expected risk / return profile

Capital Appreciation

Viewed as more risky with higher

return expectations

Viewed as less risky with lower return

expectations

17

Exhibit 1

Blackrock Developed Real Estate Index Fund (Passive REIT)

18

Performance YTD 1-Year 3-Year 5-Year InceptionFund return % 7.80% 1.48% 6.70% 7.50% 9.00%Benchmark return % 6.53% 0.57% 5.87% 6.73% 8.43%Difference 1.27% 0.91% 0.83% 0.77% 0.57%

Top 10 HoldingsREIT Sector Country Holding %

1 Simon Property Group, Inc. Retail United States 3.462 Prologis, Inc. Industrial & Office United States 2.333 Public Storage Specialty United States 2.204 Welltower, Inc. Residential United States 1.795 AvalonBay Communities, Inc. Retail United States 1.706 Unibail-Rodamco SE Specialty France 1.687 Digital Realty Trust, Inc. Industrial & Office Canada 1.678 Equity Residential Residential United States 1.639 Sun Hung Kai Properties Limited RE Holding & Development Hong Kong 1.60

10 Ventas, Inc. Specialty United States 1.60

• IL SURS has approximately $715 million of exposure (3.8% of Plan assets) to passive REITS within the Blackrock Developed Real Estate Index Fund

• This allocation was historically supported by the Board’s desire for higher allocation to liquid real estate within a passive and global construct

*The Fund’s net asset value does not include an accrual for the investment management fee but does include an accrual for fund level administrative costs and, if applicable, certain third party acquired fund fees and expenses.

Investment Strategy & Objective

Fund Benchmark# of Securities 319 332Dividend Yield 3.88 3.89

Investment Details (as of 9.30.17)Benchmark FTSE/NAREIT Developed IndexTotal Fund AUM $5.51 BillionInception Date 6.30.2009

Blackrock REIT Index AUM $10.81 BillionBlackrock Total Index Assets1 $3.68 Trillion

The Developed Real Estate Index Non-Lendable Fund (the "Fund") is a passive REIT index fund that seeks investment results which mirror the capitalization weighted total return of the FTSE NAREIT Global Real Estate Index. The investment universe consists of publically traded real estate equity securities of issuers whose principal business is the ownership and operation of real estate. The Fund does not engage in securities lending.

1. Index AUM across equities and fixed income. Blackrock is the largest index asset manager globally.

Data provide by manager as of 9/30/2016

Exhibit 1

• REITs have a low correlation to the ODCE and a high correlation to public equities over shorter hold periods with 2x volatility vs. ODCE on a one-year rolling basis

• The break in correlations occurs around the fifth or sixth year when REITs begin to look more like private core real estate and less like public equities

• REITS are poor placeholders for private real estate and allocations to REITs will impact the overall portfolio risk/volatility

Public vs. Private Core Real Estate Correlation

US PUBLIC REITS vs. PRIVATE ODCE

22.1% 22.2%

12.5% 0.4%1.8%

63.2%77.8%

REITs ODCE

Common Equity

Preferred Equity

Convertible Debt

Unsecured Debt

Senior Debt

REIT Capital Structure vs. Private ODCE

• REITS tend to use higher leverage vs ODCE but has a more dynamic capital structure which can be positive in up-cycles but negative in down-cycles

19

Exhibit 1

Core+

Total Return: 9%-

11%

Leverage: ~50%

Generally Complex

Entity-Level Transactions

BPP

200 bps-300 bps

Alpha (55%-65%)Leverage(35%-45%)

Excess Return

*

Core

Total Return: 6%-

9%

Leverage: ~25

Generally Single Asset Acquisitions

ODCEFunds

BPP Example – Core+ vs. Core

*Excess Return – for illustrative purposes based on sample model with 4% cost of debt. Actual results will vary.

20

Exhibit 1

Core+ Core

BPP Heitman JPM UBS ODCE(24 Funds)

Founded 2014 2007 1998 1978 1978

Total Assets1$9,819 $8,792 $41,230 $23,452 $218,000

Net Asset Value$5,137 $6,732 $30,515 $19,655 $174,300

Performance2

201610.1% 9.2% 7.3% 6.1% 7.8%

201519.3% 15.2% 14.1% 11.8% 14.0%

3-Year313.8% 11.5% 10.5% 9.5% 11.0%

Leverage46.9% 23.0% 26.0% 15.0% 22.0%

Notes:Figures in $millionsData provided by managers as of December 31, 20161. Total Assets - includes ownership shares in joint-venture investments.2. Capitalization weighted, net of fees, time-weighted returns3. BPP inception IRR (net) - not full 3-years as fund incepted in 2014.

Summary Performance Comparison

21

Exhibit 1

Summary of NEPC’s Qualitative and Quantitative Fund Review Process

• In reviewing Funds, NEPC considers the following qualitative and quantitative criteria, among others:

– Current market environment– Fund strategy relative to past funds– Team experience, turnover, incentive structure, and deal sourcing capabilities– Firm track record and quantitative analysis– Firm terms, governance, and stability (including the ability to raise fund offered)– Fund leverage strategy– GP co-investment in fund– Other firm business lines (and competing pools of capital)

• NEPC uses the following key quantitative measures to review and compare managers (at the fund and investment level):

– Absolute performance measures the manager’s ability to generate positive returns independent of investment environment

– Relative performance measures the manager’s ability to generate outsized returns relative to other managers investing during the same time period (the benchmark used to compare relative performance is the Thomson One Value-Add and Opportunistic fund vintage year benchmark)

– Performance trend analysis looks at how the manager’s performance has shifted over time on both an absolute and relative basis

• Other key quantitative factors reviewed include return volatility/dispersion and general attribution analysis on both an absolute and relative basis

• In this analysis, NEPC looks back 15-years, excluding earlier performance that may be less relevant today for the current investment team, incentives, market conditions, etc.

22

Exhibit 1

3. SURS’ Detailed Private Real Estate Pacing Plan

Exhibit 1

General Plan Assumptions

Total Plan Assets $18,572 Plan Return Assumptions 2018 2019 2020Target Investment Return 7.3% 7.3% 7.3%

Total Real Estate NAV $1,051 Contributions 0.0% 0.0% 0.0%Total Real Estate Capital to be Funded $293 Payouts (1.6%) (1.6%) (1.6%)Total Real Estate Exposure $1,344 Expenses 0.0% 0.0% 0.0%

Reserve for Expenses 0.0% 0.0% 0.0%Total Real Estate NAV / Total Plan Assets 5.7% Net Growth Rate 5.7% 5.7% 5.7%Total Real Estate Exposure / Total Plan Assets 7.2%Target Real Estate Allocation % (Current Target) 6.0% Plan-Level data as of 09/30/17

Fund-Level data as of 06/30/17

Total Projected Plan Assets

Actual Projected2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Total Plan Net Growth Rate (3.4%) 4.7% 8.1% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7% 5.7%

Total Plan Beginning NAV $16,981 $16,396 $17,172 $18,572 $19,621 $20,729 $21,901 $23,138 $24,445 $25,826 $27,286 $28,827 $30,456Yearly Net Growth ($585) $776 $1,399 $1,049 $1,109 $1,171 $1,237 $1,307 $1,381 $1,459 $1,542 $1,629 $1,721Total Plan Ending NAV $16,396 $17,172 $18,572 $19,621 $20,729 $21,901 $23,138 $24,445 $25,826 $27,286 $28,827 $30,456 $32,177

Target Real Estate Allocation 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%Target Real Estate NAV $984 $1,030 $1,114 $1,177 $1,244 $1,314 $1,388 $1,467 $1,550 $1,637 $1,730 $1,827 $1,931

Total Projected Plan Assets and Target Real Estate Allocation

Actual Projected

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Total Plan Ending NAV Target Real Estate NAV

General Plan Assumptions

• 5.7% current plan NAV to private real estate.

• 7.2% total plan exposure

• 6.0% target allocation to private real estate.

• Assumed plan net growth rate of 5.7%


24

Exhibit 1

Real Estate Plan Projections

Actual ProjectedYear 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Real Estate NAV $877 $982 $1,051 $1,178 $1,310 $1,357 $1,408 $1,494 $1,636 $1,598 $1,727 $1,845 $1,940Uncalled Capital Commitments $58 $58 $293 $161 $107 $157 $168 $183 $237 $221 $202 $224 $194Real Estate NAV + Uncalled Capital Commitments $934 $1,040 $1,344 $1,339 $1,417 $1,513 $1,576 $1,678 $1,874 $1,819 $1,929 $2,069 $2,134

Target Real Estate NAV $984 $1,030 $1,114 $1,177 $1,244 $1,314 $1,388 $1,467 $1,550 $1,637 $1,730 $1,827 $1,931Weighted Over-Commitment Pace 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2x 1.2xTarget Real Estate Over Allocation $1,141 $1,195 $1,293 $1,366 $1,443 $1,524 $1,610 $1,701 $1,798 $1,899 $2,006 $2,120 $2,240

Percent of Total Plan AssetsReal Estate NAV (%) 5.3% 5.7% 5.7% 6.0% 6.3% 6.2% 6.1% 6.1% 6.3% 5.9% 6.0% 6.1% 6.0%Real Estate Uncalled Capital Commitments (%) 0.4% 0.3% 1.6% 0.8% 0.5% 0.7% 0.7% 0.8% 0.9% 0.8% 0.7% 0.7% 0.6%

NAV + Uncalled Capital Commitments (%) 5.7% 6.1% 7.2% 6.8% 6.8% 6.9% 6.8% 6.9% 7.3% 6.7% 6.7% 6.8% 6.6%

Target Real Estate Allocation (%) 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%Target Real Estate Over Allocation (%) 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0%

Actual Projected

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Existing RE Investments NAV New RE Investments NAV Existing RE Investments Uncalled Capital New RE Investments Uncalled Capital Target Real Estate NAV Target Real Estate Over Allocation

Private Real Estate Plan Projections

• Red line is the 6% target RE allocation based on projected plan total NAV; Black dashed line is the 1.2x over-commitment.• Goal is to keep real estate NAV (green bar) plus uncalled capital commitments (blue bar), between red line and black dashed line.


25

Exhibit 1

Private Real Estate Portfolio Construction and Existing Private Real Estate Investments


Target Real Estate Allocations

Target Max Min Target Current Capital Total % of Over / (Under) FundingPercent Percent Percent Dollar Valuation to be Current Total of Total Exposure vs.

Investment Strategy Allocation Allocation Allocation Allocation (NAV) Funded Exposure Exposure Current TargetCore/Core-Plus (Open-End) 60% 70% 40% $668.6 $775.7 $0.0 $775.7 58% $107.1

Value-Add (Closed-End) 18% 30% 10% $195.0 $140.5 $163.9 $304.4 23% ($54.5)

Opportunistic (Closed-End) 18% 30% 10% $195.0 $134.9 $68.7 $203.6 15% ($60.1)

Debt (Closed-End) 5% 15% 0% $55.7 $0.0 $60.0 $60.0 4% ($55.7)

Total / Wtd. Avg. 100% $1,114.3 $1,051.0 $292.6 $1,343.7 100% ($63.3)

Existing Real Estate Investments

Core/Core-Plus (Open-End)

Fund NameVintage

Year Committed Paid In CapitalCapital to be

FundedCumulative Distributed

Current Valuation

(NAV) Total Value

% of Dividends

ReinvestedAnticipated

RedemptionsRedemption

Request YearUBS TPF 2006 $220.0 $220.0 $0.0 $22.8 $375.6 $398.4 100% $403.7 2018JPM SPF 2013 $150.0 $150.0 $0.0 $0.0 $201.8 $201.8 100% $0.0 NAHeitman HART 2013 $150.0 $150.0 $0.0 $0.0 $198.4 $198.4 100% $0.0 NATotal Core/Core-Plus (Open-End) $520.0 $520.0 $0.0 $22.8 $775.7 $798.5 NA $403.7 NA

Value-Add (Closed-End)

Fund NameVintage



Current Valuation

(NAV) Total Value Net benefit DPI Ratio TVPI RatioRREEF America REIT III 2006 $35.7 $35.7 $0.0 $17.0 $0.3 $17.3 ($18.4) 0.48x 0.48xFranklin Templeton FTPREF 2010 $50.0 $39.7 $10.3 $47.4 $12.1 $59.5 $19.8 1.19x 1.50xMesirow MFIRE II 2012 $60.0 $39.3 $20.7 $15.3 $38.7 $54.1 $15.1 0.39x 1.38xFranklin Templeton EMREFF 2012 $75.0 $66.5 $8.5 $63.1 $33.0 $96.0 $29.6 0.95x 1.44xFranklin Templeton Sept. Acct. 2015 $90.0 $12.6 $77.4 $0.2 $11.6 $11.8 ($0.9) 0.01x 0.93xBlue Vista IV 2015 $35.0 $18.8 $16.2 $0.0 $18.6 $18.6 ($0.2) 0.00x 0.99xCrow Holdings VII 2015 $35.0 $24.1 $10.9 $1.7 $26.2 $27.9 $3.7 0.07x 1.16xCrow Holdings VIII 2017 $20.0 $0.0 $20.0 $0.0 $0.0 $0.0 $0.0 NA NATotal Value-Add (Closed-End) $400.7 $236.8 $163.9 $144.7 $140.5 $285.2 $48.6 0.61x 1.20x

Opportunistic (Closed-End)

Fund NameVintage



Current Valuation

(NAV) Total Value Net benefit DPI Ratio TVPI RatioDune Real Estate Fund II 2009 $40.0 $39.7 $0.3 $46.4 $24.2 $70.6 $30.8 1.17x 1.78xDune Real Estate Fund III 2013 $100.0 $67.0 $33.0 $1.0 $89.4 $90.4 $23.4 0.01x 1.35xBrookfield SREP II 2015 $35.0 $19.6 $15.4 $0.0 $21.3 $21.3 $1.8 0.00x 1.09xDune Real Estate Fund IV 2017 $20.0 $0.0 $20.0 $0.0 $0.0 $0.0 $0.0 NA NATotal Opportunistic (Closed-End) $195.0 $126.3 $68.7 $47.4 $134.9 $182.2 $55.9 0.38x 1.44x

Debt (Closed-End)

Fund NameVintage



Current Valuation

(NAV) Total Value Net benefit DPI Ratio TVPI RatioOaktree Real Estate Debt Fund II 2017 $30.0 $0.0 $30.0 $0.0 $0.0 $0.0 $0.0 NA NABasis Fund I 2017 $30.0 $0.0 $30.0 $0.0 $0.0 $0.0 $0.0 NA NATotal Debt (Closed-End) $60.0 $0.0 $60.0 $0.0 $0.0 $0.0 $0.0 NA NA

26

Exhibit 1

Private Real Estate Commitments & Redemptions by Year


Real Estate Commitments & Redemptions by Vintage Year

Real Estate Commitments & Redemptions by Vintage Year

Commitments Actual More Certain Less CertainYear 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Core/Core-Plus (Open-End) $0 $0 $0 $300 $0 $0 $0 $0 $30 $0 $30 $0 $0Value-Add (Closed-End) 160 0 20 0 60 0 100 0 120 0 120 0 100Opportunistic (Closed-End) 35 0 20 60 0 100 0 120 0 120 0 100 0Debt (Closed-End) 0 0 60 0 0 30 0 0 60 0 0 60 0Total Commitments $195 $0 $100 $360 $60 $130 $100 $120 $210 $120 $150 $160 $100

Redemptions Actual More Certain Less CertainYear 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Core/Core-Plus (Open-End) NA NA NA ($404) $0 $0 $0 $0 $0 $0 $0 $0 $0Total Redemptions NA NA NA ($404) $0 $0 $0 $0 $0 $0 $0 $0 $0

Actual

($500)

($400)

($300)

($200)

($100)

$0

$100

$200

$300

$400

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Core/Core-Plus (Open-End) Value-Add (Closed-End) Opportunistic (Closed-End) Debt (Closed-End) Core/Core-Plus (Open-End)

ProjectedCommitments

Redemptions

27

Exhibit 1

Real Estate Allocation by NAV

Real Estate Allocation by NAV + Uncalled Capital CommitmentsProjected

Projected

Actual

71% 70%58% 55% 55% 54% 54% 53% 51% 55% 55% 54% 55%

8% 14%

23%22% 23%

20% 24%20% 24% 16%

20% 18% 20%

21%15%

15% 19% 17%20% 16% 22% 19% 24%

20%22% 19%

0% 0% 4% 4% 4% 6% 6% 5% 6% 5% 4% 6% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Core/Core-Plus (Open-End) Value-Add (Closed-End) Opportunistic (Closed-End) Debt (Closed-End)

Actual

76% 75% 74%62% 60% 60% 60% 59% 58% 62% 62% 61% 60%

7% 14% 13%

21% 21% 20% 20% 19% 20% 14% 16% 17% 17%

17% 12% 13%15% 15% 15% 14% 16% 17% 19% 18% 18% 18%

0% 0% 0% 2% 4% 5% 6% 6% 5% 4% 4% 5% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Core/Core-Plus (Open-End) Value-Add (Closed-End) Opportunistic (Closed-End) Debt (Closed-End)

Private Real Estate Sub-Allocations


• Build towards and maintain balanced sub-strategy allocations

28

Exhibit 1

Private Real Estate Projected Drawdowns and Distributions


Real Estate Projected Drawdowns and Distributions

Actual ProjectedYear 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027Real Estate Drawdowns ($323) ($71) ($19) ($481) ($114) ($80) ($89) ($105) ($156) ($136) ($169) ($138) ($131)

Real Estate Distributions 46 59 25 440 63 117 129 133 149 326 171 164 196

Real Estate Net Cash Flow ($277) ($12) $6 ($41) ($52) $37 $40 $28 ($7) $190 $1 $26 $65

Actual

($600.0)

($400.0)

($200.0)

$0.0

$200.0

$400.0

$600.02015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Real Estate Drawdowns Real Estate Distributions Real Estate Net Cash Flow

Projected

29

Exhibit 1

Appendix 1:Alternative Investment Disclaimer

Exhibit 1

• Past performance is no guarantee of future results.

• The opinions presented herein represent the good faith views of NEPC as of the date of this report and are subject to change at any time.

• Information used to prepare this report was obtained directly from the investment managers or custodians, and market index data was provided by other external sources. While NEPC has exercised reasonable professional care in preparing this report, we cannot guarantee the accuracy of all source information contained within.

• This report may contain confidential or proprietary information and may not be copied or redistributed to any party not legally entitled to receive it.

Disclaimer

31

Exhibit 1

• In addition, it is important that investors understand the following characteristics of non-traditional investment strategies including hedge funds, real estate and private equity:

1. Performance can be volatile and investors could lose all or a substantial portion of their investment

2. Leverage and other speculative practices may increase the risk of loss3. Past performance may be revised due to the revaluation of investments 4. These investments can be illiquid, and investors may be subject to lock-ups or lengthy

redemption terms5. A secondary market may not be available for all funds, and any sales that occur may take

place at a discount to value6. These funds are not subject to the same regulatory requirements as registered investment

vehicles7. Managers may not be required to provide periodic pricing or valuation information to

investors8. These funds may have complex tax structures and delays in distributing important tax

information9. These funds often charge high fees10. Investment agreements often give the manager authority to trade in securities, markets or

currencies that are not within the manager’s realm of expertise or contemplated investment strategy

Alternative Investment Disclosures

32

Exhibit 1

Real Estate Asset Class Review December 2017

Exhibit 2

• SURS current real estate exposure: • $1.1 billion in private direct real estate

• $293M of uncalled commitments • $715M in public REITs, all passively managed

• Long-term target real estate allocations:

• Private direct real estate: 6% of total plan assets • Public REITs: 4% of total plan assets

• SURS has generally achieved target allocations, although currently slightly under-allocated to private

(-27bps) and slightly under-allocated to public (-15bps) • Recent real estate commitments and continued compliance with recommended pacing will maintain

allocation • NEPC funding plan recommendations are intended to be used as directional guideline and are revisited

annually (recently completed)

• To achieve 6% private direct real estate target, NEPC recommends the following allocations: • ~60% core real estate (currently ~73%) • ~35% non-core real estate (currently ~27%) • ~5% private real estate debt (currently in legal negotiations)

Current and future commitments will keep portfolio on track for target allocation

Real Estate Portfolio Overview

2

Exhibit 2

Expe

cted

Ret

urn

Risk

Direct Non-Core • 8-12+% expected return • Appreciation-focused returns • Higher leverage: 40-70% • Typically held 3-10 years • Both equity and debt investments • Primarily invest via commingled funds • Semi-liquid investments dependent on vintage year Public REITs

• 7-9% expected return • Typically stabilized, income-producing assets • Leverage: 30-50% • Typically held long-term • Can be equity or debt investments • Primarily invest via REIT funds/SMA • Susceptible to equity market volatility in the short term • Highly liquid

• SURS maintains diversification by investing across each strategy type • Core: Foundation of the portfolio, providing stable income with limited alpha • REITs: Provide a significant portion of SURS’ international real estate exposure • Non-Core: Opportunities for enhanced returns through capital appreciation

Direct Core • 7-8% expected return • Income oriented, stabilized assets • Lower leverage: 15-30% • Typically held long-term • Primarily equity investments • Primarily invest via open-end funds • Funds subject to entry/exit queues which can be lengthy

Real estate provides a spectrum of public and private investment opportunities

Real Estate Risk/Return Profile

3

Exhibit 2

• Board adopted an asset allocation in fiscal 2001 that created a 2% allocation to REITs • Portfolio has diversified over time to include private strategies

• In March 2005 Board approved a 2% allocation to direct private real estate and increased REITs to 4% • Utilize two different fund structures for direct real estate: open-end and closed-end funds

• Core holdings (open-end funds) provided stability during global financial crisis • Timing of non-core commitments (closed-end funds) allowed opportunity to take advantage of

market distress post crisis • The asset/liability study approved in June 2011 resulted in increase in direct real estate allocation to 6% • REITs typically own core assets, but due to their global nature, are segregated for this presentation’s purposes

Portfolio has transitioned to include private core and non-core exposure

Total Real Estate Portfolio

4

Exhibit 2

• Open-end exposure is invested in core real estate through three mandates • RREEF III is in wind-down phase with only a small contingency being held back

• As RREEF II was being redeemed, a search was conducted, leading to the hiring of Heitman and JP Morgan • $150M committed to each of Heitman and JP Morgan

Open-End fund manager roster has been diversifying over time

Total Open-End Funds

5

Exhibit 2

• Non-core commitments since 2009 of $640 million (including recent $80 million to private debt) • $215 million of which to MFDB mandates (34% of total non-core commitments)

• 15% of non-core portfolio current market value in funds from MFDB firms • Recently committed $50 million to two MFDB private debt funds

• Funds are currently either in legal negotiations or awaiting further fundraising traction to begin legal review

Furthering our commitment to diversity within the portfolio

MFDB Exposure

6

Exhibit 2

• Some core funds, including UBS TPF, have been in existence for decades

• Clear distinction between core and non-core return expectations

• In general, return expectations have come down over time to reflect market expectations

Performance has exceeded benchmarks over long time periods

Historical Performance • Total direct real estate has performed well over

longer time periods • More-recent core returns lagging mostly due to

objectives of one manager • Non-core performance outpacing core as

expected

Fund NameFund

StrategyFund

Vintage Return ExpectationsCore Direct Real EstateUBS Trumbull Property Fund Core 1978 5% gross real rate of return over a three- and five-year periodJP Morgan Strategic Property Fund Core 1998 100 bps in excess of NFI-ODCE over complete real estate cycleHeitman America Real Estate Trust Core 2007 100 bps in excess of NFI-ODCE over rolling 5-year periodsNon-Core Direct Real EstateDune Real Estate Parallel II Opportunistic 2010 18-22% gross IRR; 9% preferred returnDune Real Estate III Opportunistic 2013 15-17% net IRR; 9% preferred returnBrookfield Strategic Real Estate Partners II Opportunistic 2015 16% net IRR; 9% preferred returnDune Real Estate IV Opportunistic 2018 15-17% net IRR; 9% preferred returnRREEF America REIT III Value-Add 2006 12-16% total return over the long termFranklin EMREFF Value-Add 2011 15% net IRR; 9% preferred returnFranklin FTPREFF Value-Add 2012 15% net IRR; 8% preferred returnPru Global RE Partnership II (f/k/a MFIRE II) Value-Add 2012 13-15% net IRR; 10% preferred returnCrow Holdings Realty Partners VII Value-Add 2014 10-11% net IRR; 9% preferred returnBlue Vista Real Estate Partners IV Value-Add 2015 15% net IRR; 8% preferred returnFranklin MDP RE 2015 Value-Add 2015 12-14% net IRR; 9% preferred returnCrow Holdings Realty Partners VIII Value-Add 2017 10-11% net IRR; 9% preferred return

1.1%

5.9%

9.5% 9.5%

6.5%

2.6%

10.0%

12.5%

15.1%

8.9%

1.5%

6.9%

10.3% 10.8%

4.3%

0%

4%

8%

12%

16%

Quarter 1-Year 3-Year 5-Year ITD

Total Direct Real Estate Performance

Core Non-Core Benchmark

7

Exhibit 2

• In April 2015, the Board approved commitments to four new real estate relationships as part of three-year real estate funding plan presented September 2014

• NEPC recommends following investment pacing to achieve outlined private real estate targets: 2018 • Redeem ~$400 million from core funds (fully redeem from UBS Trumbull Property Fund) • Rebalance $300 million of core proceeds to core+ real estate • Commit up to $60 million to non-core ($35 million to Brookfield III) 2019 • Commit up to $60 million to non-core to maintain pacing 2020 • Commit up to $100 million to non-core and up to $30 million to debt

• Additional Considerations:

• Reduction of REIT allocation to dampen volatility of real estate portfolio and be more consistent with peers

• Subject to next asset/liability study • Current REIT allocation could be used as funding source for future real estate commitments

Opportunities to further diversify portfolio in the future

Investment Pacing Plan Update

8

Exhibit 2

11.3%

7.0%8.3%

12.5%

5.1%

11.1%

6.8% 6.5%

12.4%

4.9%

02468

101214

3Q82-4Q85 1Q86-1Q90 2Q90-1Q01 2Q01-4Q07 1Q08-2Q17(Current)

% Re

turn

Full Market Cycle Performance (Peak-to-Peak)

UBS TPF NFI-ODCE

• SURS made a $220 million commitment to Trumbull Property Fund (TPF) in June 2006

• Invest in high-quality U.S. real estate focusing on income and diversification with modest leverage • TPF’s goal is to achieve a 5% gross real return over 3-5 years while also outperforming ODCE over full market cycle

• Spotty performance vs. 5% real return hurdle; underperformance over shorter time periods vs. ODCE • As CPI has ticked up, real return hurdle becoming more difficult to achieve

• Over the long term TPF has kept pace with ODCE, post-GFC it has trailed the index (11.3% vs. 12.9%) • TPF’s 10-yr. beta of 0.75 benefits the fund during market downturns, but hampers it in upturns • Barring another Global Financial Crisis-type event, performance will likely continue to lag peers

TPF’s performance has lagged post-Global Financial Crisis

UBS TPF Recommendation

(30)(25)(20)(15)(10)

(5)05

10152025

CY98

CY99

CY00

CY01

CY02

CY03

CY04

CY05

CY06

CY07

CY08

CY09

CY10

CY11

CY12

CY13

CY14

CY15

CY16%

Retu

rn

Calendar Year Performance

UBS TPF NFI-ODCE

TPF: -20.2% ODCE: -27.2%

TPF: 11.3% ODCE: 12.9%

5.7%

9.6% 9.8%

5.3%6.6%

5.9% 6.3%6.6%

0

2

4

6

8

10

12

1 Yr 3 Yr 5 Yr 10 Yr

% Re

turn

Historical Performance (Real Return)

UBS TPF 5% Real Return

1.2%

5.7%

9.6% 9.8%

5.3%

1.7%

7.9%

11.3% 11.8%

5.2%

0

2

4

6

8

10

12

14

Quarter 1-Yr 3-Yr 5-Yr 10-Yr

% Re

turn

Historical Performance (ODCE)

UBS TPF NFI-ODCE

9

Exhibit 2

• Much of TPF’s performance explained by leverage usage and asset selection/management practices • While lower leverage was beneficial during the downturn, as real estate markets have improved, TPF has not kept pace • Office has trailed the ODCE by 263 and 177 bps over the one- and three-year periods due to recent leasing events • Hotels have lagged by over 500 and 300 bps as both TPF and ODCE hotels have underperformed other asset classes • Retail has lagged by nearly 200 and 150 bps with lower relative returns from the mall portfolio

• Each of SURS’ core managers have lower standard deviations with returns at or above ODCE

• TPF has shown less risk than index, but its risk-adjusted performance has trailed the other funds in our portfolio • 10-Yr risk-adjusted excess returns:

• HART: 2.93% • JPM SPF: 1.45% • UBS TPF: 1.32%

Lower leverage and asset management have affected TPF’s return history

UBS TPF Recommendation, Cont.

(-2.1)4)

3.29

0.82 (0.05) 0.06 (0.81) (0.90)(0.91) (0.53)

(1.94)

0.13

4.28

0.55

(3.23)(1.70)

(1.17) (0.96) (1.34) (0.80)(0.22)(0.51)

2.93

3.95

0.46 0.54

(0.13) (0.22)

0.72 0.33 0.06

(3)

(1)

1

3

5

7

9

11

FYE 08 FYE 09 FYE 10 FYE 11 FYE 12 FYE 13 FYE 14 FYE 15 FYE 16 FYE 17

% Re

turn

UBS TPF Attribution vs. ODCE

Qualifying Properties Leverage Other

-2.52% 10.50% 5.31% -2.82% -1.10% -2.10% -2.08% -1.53% -1.00% -2.10%

14.6% 13.8% 14.5%11.3%

22.9% 23.2%25.8%

22.0%

0

5

10

15

20

25

30

3-Yr Avg 5-Yr Avg 10-Yr Avg 20-Yr Avg

% Le

vera

ge

Weighted Average LeverageJune 30, 2017

UBS TPF NFI-ODCE ex. UBS

0

2

4

6

8

6 7 8 9

% Re

turn

Std Dev (%)

10-Yr Risk/ReturnCore Portfolio

UBS TPF HART JPM SPF NFI-ODCE

10

Exhibit 2

• 60/40 core/non-core allocation has been recommended • UBS TPF has underperformed its real return mandate over the short term and has not met the

performance of its peers in the NFI-ODCE index over short- and medium-term periods • TPF represents half of the SURS core real estate portfolio ($380M out of a total of $775M) and has

become a drag on the overall portfolio’s performance • Interesting fund strategies are becoming available in the core+ space, leaving SURS with opportunities

to enhance our return profile while maintaining a core-like real estate structure • As discussed, three options are available to invest the UBS TPF proceeds

• Commit proceeds to a core+ fund(s) at the conclusion of a search • Invest the proceeds temporarily in the global REITs portfolio • Allocate the proceeds to JP Morgan Strategic Property Fund and Heitman HART

• Staff and NEPC jointly recommends: That based on the recommendation of staff and SURS investment consultant, the Board authorizes staff to coordinate a full redemption from the UBS Trumbull Property Fund and use proceeds to invest $300 million in core+, open-end real estate fund(s).

Staff and NEPC recommend certain redemptions from the open-end core portfolio

UBS TPF Recommendation, Cont.

11

Exhibit 2

• As stated on the prior page, staff and consultant are recommending investing the redeemed UBS TPF core fund proceeds into a core+ open-end fund(s)

• Would require a search that could get underway following December Investment Committee meeting • 10-12 likely possible respondents, with one currently on NEPC’s Focus Placement List

• Potential search timeline: Quiet Period Begins December 7, 2017 Launch Search Mid December 2017 Deadline for Responder Questions Late December 2017 Responses to Questions Mid January 2018 RFP Responses Due Late January 2018 Evaluations February 2018 Candidate Interviews February 2018 Selection March 9, 2018

• Staff would ensure timing of redemption from UBS TBF and entry into selected fund(s) would occur in an efficient manner

• Staff and NEPC jointly recommends: That based on the recommendation of staff and SURS investment consultant, the Board authorizes staff to conduct a search for a core+ open-end real estate fund(s).

Staff and NEPC recommend a core+ open-end real estate search begin

Core+ Search Recommendation

12

Exhibit 2

• Staff and the Board have had ongoing discussions about adding specialty consultants to enhance the services of a general defined benefit consultant

• A specialty real estate consultant could provide flexibility in the procurement process of securing real estate fund commitment while allowing the Board discretion in ultimate manager selection

• Would require a search that could get underway following February Investment Committee meeting • Only a few likely respondents

• Potential search timeline: Quiet Period Begins February 1, 2018 Launch Search Mid February 2018 Deadline for Responder Questions Late February 2018 Responses to Questions Early March 2018 RFP Responses Due Late March 2018 Evaluations April/May 2018 Candidate Interviews May 2018 Selection June 8, 2018

• Staff intends to draft an RFP for a specialty real estate consultant for possible approval at the February

Investment Committee meeting

Staff recommending specialty real estate consultant search following Feb. meeting

Specialty Real Estate Consultant Search Recommendation

13

Exhibit 2

Appendix

14

Exhibit 2

Balanced portfolio providing diversified exposures

Direct Real Estate Portfolio Composition

• “Other” property types include hotel, self storage, student housing, senior housing, land, mixed-use assets • Majority of international exposure from FTPREF, Pru (former MFIRE II) and Brookfield II holdings • Fund concentration should normalize as non-core manager roster grows

• “Other” property types primarily include hotel (UBS Trumbull) and self storage (Heitman HART) • Geographic diversification similar to ODCE benchmark • Complementary features derived from the core managers

15

Exhibit 2

HART provides complementary self-storage to the Core portfolio

Heitman America Real Estate Trust (HART)

Source: NEPC

16

Exhibit 2

Heitman has performed well historically

Heitman America Real Estate Trust (HART)

Source: NEPC 17

Exhibit 2

SPF is the largest fund in the ODCE universe

JP Morgan Strategic Property Fund (SPF)

Source: NEPC 18

Exhibit 2

SPF has little-to-no development and value-add exposure, limiting more recent returns

JP Morgan Strategic Property Fund (SPF)

Source: NEPC

19

Exhibit 2

UBS is one of the least leveraged funds in the ODCE universe

UBS Trumbull Property Fund (TPF)

Source: NEPC 20

Exhibit 2

Leverage and asset management has hampered performance over shorter periods

UBS Trumbull Property Fund (TPF)

Source: NEPC

21

Exhibit 2

Blue Vista IV invests in value-add, middle market real estate assets

Blue Vista Real Estate Partners IV

Performance not meaningful at this point

Fund Final Close Mar-16Fund Size $445 millionSURS Commitment Date Aug-15SURS Commitment Amount $35 millionCapital Called to Date $18.8 millionDistributions to Date* NoneInvestment Period Ends March 2020

Fund Term Ends March 2024 (two, 1-Yr extension options)

* Portions may be recallable by the fund

Fund Objective

Structured as majority equity investments in smaller deals or as sponsor equity to local operating partners in larger deals

Risk Profile Value-AddTarget Fund Return 15% netGeographic Focus United StatesProperty Type Focus DiversifiedLeverage Level 59%Number of Investments 36Target Deal Size $2-$15 million

Management Fee 1.5% on committed/investedCarried Interest 20% of profitsPreferred Return 8%

Distribution Waterfall

1. 100% to LP until LP has received 8% IRR2. 20% LP/80% GP until GP receives 20% of profits3. 80% LP/20% GP thereafter

Fund OverviewFund Statistics

Fund Strategy

Fund Economics

22

Exhibit 2

Crow VII invests in value-add real estate in large, diversified US markets

Crow Holdings Realty Partners VII


Fund Final Close Dec-15Fund Size $1.85 billionSURS Commitment Date Nov-15SURS Commitment Amount $35 millionCapital Called to Date $24 millionDistributions to Date* NoneInvestment Period Ends December 2018

Fund Term Ends November 2024 (two, 1-yr extension options)


Fund Objective

Target well-located properties with an in-place income stream and the opportunity to produce appreciation through value creation methods such as increasing NOI, redevelopment, asset repositioning, acquiring assets at a discount in recovering markets, and buying below replacement cost

Risk Profile Value-AddTarget Fund Return 10-11% netGeographic Focus United StatesProperty Type Focus DiversifiedLeverage Level 61%Number of Investments 100Target Deal Size <$50 million





Fund Strategy

Fund Economics

23

Exhibit 2

EMREFF provides MFDB exposure to the real estate portfolio

Franklin Templeton EMREFF

Fund Final Close Oct-11Fund Size $192 millionSURS Commitment Date Oct-10SURS Commitment Amount $75 millionCapital Called to Date $78.5 millionDistributions to Date* $70 millionInvestment Period Ended October 2013

Fund Term 10th Anniversary of first close (three, 1-yr extension options)


Fund Objective

Make investments in US-based, value-add real estate fund managers meeting the Illinois statute definition of MFDB-owned

Risk Profile Value-AddTarget Fund Return 15% netGeographic Focus United StatesProperty Type Focus DiversifiedLeverage Level 54%Number of Investments 7Target Deal Size $5-$10 million




Fund Overview

Fund Statistics

Fund Strategy

Fund Economics

2Q17 1-Yr 3-Yr 5-YrSince

Inception

EMREFF -8.99% 5.38% 12.73% 15.10% 12.95%ODCE + 1.5% 1.86% 8.42% 11.84% 12.27% 12.52%Excess -10.85% -3.04% 0.89% 2.83% 0.43%

Annualized Fund Returns

24

Exhibit 2

FTPREF has provided international diversification and strong returns

Franklin Templeton FTPREF Fund Final Close Mar-12Fund Size $319 millionSURS Commitment Date Mar-12SURS Commitment Amount $50 millionCapital Called to Date $51.3 millionDistributions to Date* $38.4millionInvestment Period Ends March 2015

Fund Term 12 years from initial close (three, 1-yr extension options)


Fund Objective

To invest in underlying value-add private real estate funds where the underlying funds in turn will make equity and debt investments globally in real estate and real estate-related assets

Risk Profile Value-AddTarget Fund Return 15% netGeographic Focus GlobalProperty Type Focus DiversifiedLeverage Level 52%Number of Investments 14Target Deal Size $20-$40 million




Fund Overview

Fund Statistics

Fund Strategy

Fund Economics


Inception

FTPREF 6.25% 16.32% 23.51% 24.40% 22.14%ODCE + 1.5% 1.86% 8.42% 11.84% 12.58% 12.58%Excess 4.39% 7.90% 11.67% 11.82% 9.56%


25

Exhibit 2

MDP RE 2015 is the newest diversity initiative within the real estate portfolio

Franklin Templeton MDP RE 2015


Fund Final Close August 2015-17Fund Size $90 millionSURS Commitment Date August 2015-17SURS Commitment Amount $90 millionCapital Called to Date $12.6 millionDistributions to Date* $0.2 millionInvestment Period 1 year for each tranche

Fund Term Expiration of final tranche's commitment period


Fund Objective

Make investments in US-based, value-add real estate fund managers meeting the Illinois statute definition of MFDB-owned

Risk Profile Value-AddTarget Fund Return 12-14% netGeographic Focus United StatesProperty Type Focus DiversifiedLeverage Level 59%Number of Investments 3Target Deal Size $10-$15 Million





Fund Strategy

Fund Economics

26

Exhibit 2

The fund of funds product provides global, diversified exposure

Global Real Estate Partnership II (MFIRE II)

Fund Final Close Sep-13Fund Size $92 millionSURS Commitment Date Apr-12SURS Commitment Amount $60 millionCapital Called to Date $39.3 millionDistributions to Date* $15.3 millionInvestment Period Ended December 2015Fund Term Ends March 2022* Portions may be recallable by the fund

Fund Objective

Create a diversified, risk-controlled, value-added and opportunistic, multimanager investment portfolio invested on a global basis

Risk Profile Value-add/OpportunisticTarget Fund Return 13-15% netGeographic Focus GlobalProperty Type Focus DiversifiedLeverage Level 38%Number of Investments 18Target Deal Size $5-$10 million




Fund Overview

Fund Statistics

Fund Strategy

Fund Economics


Inception

Global RE II 2.07% 7.53% 9.15% 10.53% 9.66%ODCE + 1.5% 1.86% 8.42% 11.84% 12.21% 12.21%Excess 0.21% -0.89% -2.69% -1.68% -2.55%


27

Exhibit 2

Brookfield II opportunistically invests in large assets and companies globally

Brookfield Strategic Real Estate Partners II


Fund Final Close May-16Fund Size $9 billionSURS Commitment Date Jun-15SURS Commitment Amount $35 millionCapital Called to Date $20 millionDistributions to Date* $698,000 Investment Period Ends May 2020

Fund Term Ends May 2026 (two, 1-yr extension options)


Fund Objective

Opportunistically acquire positions in real estate assets and companies globally; may invest through direct acquisitions, positions in real estate companies, distressed debt, recapitalizations, toe-hold positions in debt and equity securities, and opportunistic loan investments

Risk Profile OpportunisticTarget Fund Return 16% netGeographic Focus Global (US 50%)Property Type Focus DiversifiedLeverage Level 59%Number of Investments 22

Target Deal SizeMajority ~$700 million, balance ~$50 Million





Fund Strategy

Fund Economics

28

Exhibit 2

Dune II provides some European exposure to the portfolio

Dune Real Estate II Fund Final Close Mar-09Fund Size $794 millionSURS Commitment Date Dec-08SURS Commitment Amount $40 millionCapital Called to Date $40 millionDistributions to Date* $47 millionInvestment Period Ended March 2013

Fund Term Ends March 2017 (two, 1-yr extension options)


Fund Objective

Make opportunistic investments in a broad range of real estate-related investments, including real estate assets, common and preferred equities in real estate-related operating, finance and/or investment companies and real estate-related loans and debt securities

Risk Profile OpportunisticTarget Fund Return 18-22% grossGeographic Focus Primarily United StatesProperty Type Focus DiversifiedLeverage Level 50%Number of Investments 22Target Deal Size $25-$50 million





Fund Strategy

Fund Economics

2Q17 1-Yr 3-Yr 5-Yr

Inception

Dune II 4.56% 6.31% 14.23% 19.20% 17.09%ODCE + 1.5% 1.86% 8.42% 11.84% 12.27% 9.41%Excess 2.70% -2.11% 2.39% 6.93% 7.68%


29

Exhibit 2

Dune III has significant exposure to for sale residential in Miami and New York

Dune Real Estate III Fund Final Close Oct-14Fund Size $960 millionSURS Commitment Date Jun-13SURS Commitment Amount $100 millionCapital Called to Date $68 millionDistributions to Date* $2 millionInvestment Period Ends February 2018

Fund Term Ends August 2022 (two, 1-yr extension options)


Fund Objective

Make opportunistic investments in a broad range of real estate-related investments, including real estate assets, common and preferred equities in real estate-related operating, finance and/or investment companies and real estate-related loans and debt securities

Risk Profile OpportunisticTarget Fund Return 15-17% netGeographic Focus Primarily United StatesProperty Type Focus DiversifiedLeverage Level 60%Number of Investments 20Target Deal Size $25-$50 million




Fund Overview

Fund Statistics

Fund Strategy

Fund Economics


Inception

Dune III 4.28% 13.49% 11.83% - 12.84%ODCE + 1.5% 1.86% 8.42% 11.84% - 12.19%Excess 2.42% 5.07% -0.01% - 0.65%


30

Exhibit 2

Direct Real Estate Fees and Carried Interest

$11.9M in management fees paid to direct real estate in FY17

ManagementFees -

Fund Level

ManagementFees -

Underlying Level

UnrealizedCarried

Allocation -Fund Level

UnrealizedCarried

Allocation -Underlying

Level

TotalFees +

Unrealized Carry

3Q16 $2,582,849 $530,383 - - $3,113,2324Q16 $2,625,899 $291,326 - - $2,917,2251Q17 $2,497,455 $266,923 - - $2,764,3782Q17 $2,549,084 $514,615 $1,644,021 $7,196,720 $11,904,440

FY 17 Totals $10,255,288 $1,603,247 $1,644,021 $7,196,720 $20,699,276

Total Direct Real Estate Management Fees and Unrealized Carried Interest

31

Exhibit 2

Real Estate Performance (as of June 30, 2017)

More established funds performing as expected; J-curve effect from more recent commitments

Fund Name Vintage YearInvestment

Style

Distributions To Paid in

Capital Ratio

Total Value to Paid in

Capital Ratio QTD 1 Year 3 Year 5 YearSince

Inception

RREEF America REIT II 2005 Core 1.18x 1.18x - - - - 2.97%UBS Trumbull 2006 Core 0.18x 1.74x 0.99% 4.69% 8.62% 8.79% 6.87%Heitman HART 2014 Core 0.03x 1.32x 1.21% 7.03% - - 10.69%JP Morgan SPF 2014 Core 0.00x 1.35x 1.35% 7.00% - - 10.11%Core Total 1.14% 5.88% 9.46% 9.46% 6.47%

RREEF America REIT III 2006 Value-Add 0.71x 0.72x -6.64% -31.53% 10.06% 18.10% -3.79%Dune Real Estate II 2009 Opportunistic 1.51x 1.70x 4.56% 6.31% 14.23% 19.20% 17.09%Franklin EMREFF 2012 Value-Add 0.89x 1.39x -8.99% 5.38% 12.73% 15.10% 12.95%Franklin FTPREF 2010 Value-Add 1.19x 1.49x 6.25% 16.32% 23.51% 24.40% 22.14%Global Partnership II (MFIRE II) 2012 Value-Add 0.40x 1.38x 2.07% 7.53% 9.15% 10.53% 9.66%Dune Real Estate III 2013 Opportunistic 0.05x 1.39x 4.28% 13.49% 11.83% - 12.84%Franklin MDP RE 2015 2015 Value-Add NMF NMF NMF NMF NMF NMF NMFCrow Holdings Realty Partners VII 2014 Value-Add NMF NMF NMF NMF NMF NMF NMFBlue Vista Real Estate Partners IV 2015 Value-Add NMF NMF NMF NMF NMF NMF NMFBrookfield Strategic Real Estate Partners II 2015 Opportunistic NMF NMF NMF NMF NMF NMF NMFNon-Core Total 2.55% 10.01% 12.46% 15.06% 8.87%

Total Direct Real Estate 0.41x 1.39x 1.51% 6.95% 10.21% 10.86% 5.92%Benchmark - - 1.49% 6.92% 10.34% 10.77% 4.31%Excess 0.02% 0.03% -0.13% 0.09% 1.61%

Non-Core

IRR Summary

Core

Fund Name Vintage YearInvestment

Style Fund1st

Quartile Median3rd

Quartile Fund1st

Quartile Median3rd

Quartile Fund1st

Quartile Median3rd

Quartile IRR DPI TVPI

RREEF America REIT II 2005 Core 2.97% 3.01% 0.04% -4.85% 1.18x 1.09x 0.72x 0.52x 1.18x 1.21x 0.98x 0.71x 2 1 2UBS Trumbull 2006 Core 6.87% 6.53% -0.32% -6.37% 0.18x 1.21x 0.70x 0.37x 1.74x 1.36x 0.97x 0.66x 1 4 1Heitman HART 2014 Core 10.69% 13.88% 9.89% 4.40% 0.03x 0.15x 0.06x 0.00x 1.32x 1.19x 1.12x 1.06x 2 3 1JP Morgan SPF 2014 Core 10.11% 13.88% 9.89% 4.40% 0.00x 0.15x 0.06x 0.00x 1.35x 1.19x 1.12x 1.06x 2 3 1

RREEF America REIT III 2006 Value-Add -3.79% 6.53% -0.32% -6.37% 0.71x 1.21x 0.70x 0.37x 0.72x 1.36x 0.97x 0.66x 3 2 3Dune Real Estate II 2009 Opportunistic 17.09% 20.12% 15.18% 10.90% 1.15x 1.72x 1.41x 0.86x 1.70x 1.84x 1.59x 1.48x 2 3 2Franklin EMREFF 2012 Value-Add 12.95% 17.47% 12.23% 8.75% 0.89x 0.72x 0.38x 0.17x 1.39x 1.41x 1.32x 1.17x 2 1 2Franklin FTPREF 2010 Value-Add 22.14% 19.21% 12.96% 6.27% 1.19x 1.33x 1.04x 0.47x 1.49x 1.65x 1.44x 1.22x 1 2 2Global Partnership II (MFIRE II) 2012 Value-Add 9.66% 17.47% 12.23% 8.75% 0.40x 0.72x 0.38x 0.17x 1.38x 1.41x 1.32x 1.17x 3 2 2Dune Real Estate III 2013 Opportunistic 12.84% 15.49% 10.47% 2.63% 0.05x 0.42x 0.13x 0.04x 1.28x 1.34x 1.19x 1.06x 2 3 2Franklin MDP RE 2015 2015 Value-Add NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMFCrow Holdings Realty Partners VII 2014 Value-Add NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMFBlue Vista Real Estate Partners IV 2015 Value-Add NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMFBrookfield Strategic Real Estate Partners II 2015 Opportunistic NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF NMF

Non-Core

IRR DPI TVPI Quartile Rank

Core

32

Exhibit 2

Glossary of Terms

• Distributions to Paid-in-Capital (DPI) – The amount a partnership has distributed to its investors relative to the total capital contribution to the fund. DPI is expressed as a ratio. Also known as realization ratio.

• Internal Rate of Return – Most common measure of infrastructure performance. IRR is technically a discount rate: the rate at which the present value of a series of investments is equal to the present value of the returns on those investments.

• Paid In Capital – The sum of all capital calls plus fees, less recallable return of capital.

• Quartile – Segment of a sample representing a sequential quarter (25%) of the group. For example, the top 10 performing funds out of a universe of 40 funds would be the first quartile.

• Total Value to Paid-in Capital (TVPI) – The ratio of the current value of remaining investments within a fund, plus the total value of all distributions to date, relative to the total amount of capital paid into the fund to date

Source: The Northern Trust Company & The Institutional Limited Partners Association (ILPA) 33

Exhibit 2

EXECUTIVE SUMMARY

Topic Recommendation for $35 million commitment to Brookfield Strategic Real Estate Partners Fund III as a follow-on commitment to our $35 million commitment to Fund II, approved by the Board in April 2015

Background The 2015-2017 Real Estate Funding Plan, approved by the Board in September 2014, called for a total of $300 million in new commitments. However, the pacing model is reviewed annually to confirm whether adjustments to the original funding plan are warranted. After reviewing the updated pacing model recently, NEPC recommends 2018 commitments of $60 million to non-core real estate, among other suggested changes.

The pacing model is designed to achieve, and then maintain, the real estate allocation at or near the strategic policy target of 6%. Consistent annual funding in accordance with the pacing model is important to provide vintage year diversification, as skipping commitments in some years can result in asset levels below the policy target and gaps in distributions in future years.

In order to maintain relationships with key existing real estate managers and achieve the desired vintage year diversification while not over-allocating to the portfolio, a $35 million commitment to Brookfield is warranted. As you will recall, in December 2016, the Board approved a $20 million commitment amount to another key relationship, Crow Holdings Realty Partners Fund VIII, and again in September 2017 with Dune Real Estate Partners Fund IV.

Advantages & Concerns: The following table highlights the advantages and concerns of the recommended action:

Exhibit 3

Advantages Concerns

• Continues implementation of real estate funding plan with a successful, high quality investment firm providing both U.S and non-U.S. exposure; Assists in maintaining policy target

• Brookfield has multiple pools of investable capital including debt strategies and sector-specific funds • These funds have different strategies than

Fund III • Brookfield has a Conflicts Committee to

manage any potential conflicts among funds • Fund advisory committees are also apprised

of any potential conflicts • Brookfield’s vertically integrated platform

provides operational expertise and sourcing capabilities; Operating platforms have aided in detailed underwriting pre-acquisition and value creation post-acquisition

• Brookfield is able to choose its own operating platform (instead of third party) to manage investments, thereby receive additional fees with operating affiliates also receiving property management and other fees at market rates • Operating affiliates do not receive

acquisition or disposition fees. Finally, the operating platforms can

• Platforms provide benefits for Fund III through sourcing, underwriting and value-creation of the investments

• Significant GP commitment, with Brookfield committing $2.5 billion (~25% of expected total fund commitments) creates substantial alignment of interests with LPs

• Historically, Brookfield has sponsored five closed-end real estate opportunity funds with similar strategies, each tracking to top quartile performance

Basis for Recommendation SURS has a successful history with Brookfield through a previous commitment in Fund II. SURS has benefited from strong performance to date and staff has a high degree of confidence in the Brookfield team going forward. Brookfield has a proven track record of successfully investing in large, complex transactions. Few other managers are large enough to access these deals. In addition, as compared to a specialist manager, Brookfield's deep experience in most property types and geographies allows them to compete for a wide array of opportunities. As an incentive for first-close investors, Brookfield is offering a 10% management fee discount, saving SURS $52,500 per year during the investment period based on a $35 million commitment. Post-investment period, the fee savings would vary based on amount of capital invested. A commitment to Brookfield Strategic Real Estate Fund III will continue SURS’ history of consistent direct real estate investing. A steady pattern of commitments to the asset class provides vintage year diversification and helps ensure that the real estate portfolio is close to its strategic policy target allocation. Some key characteristics for Fund III are shown in the attached NEPC Fund Tear Sheet. Performance metrics relating to previous Brookfield funds are shown below.

Exhibit 3

Consistent performance has been a hallmark of Brookfield throughout its history. Each previous Brookfield fund is either top quartile or, in the case of BSREP II, tracking to top quartile. Recommendation SURS staff and NEPC jointly recommend that based on the recommendation of staff and SURS investment consultant, a commitment of $35 million be authorized, contingent on successful contract negotiations, to Brookfield Strategic Real Estate Fund III LP.

FundVintage

Year

Capital Committed

($M)

Capital Funded

($M)

Reported Value ($M)

Amount Distributed

($M)

Total Value, Net of Carry

($M)TVPI

MultipleDPI

MultipleCurrent Net IRR

Vintage Year

Top Quartile (Thomson

One)# of

FundsRE Opp. Fund I 2006 $242 $383 $89 $445 $528 1.4x 1.2x 8.9% 2006 5.0% 64RE Opp. Fund II 2007 $262 $359 $14 $548 $562 1.6x 1.5x 15.7% 2007 8.1% 93RE Turnaround 2009 $5,565 $3,822 $17 $7,926 $7,943 2.1x 2.1x 34.5% 2009 18.6% 39BSREP I 2012 $4,350 $4,649 $5,926 $2,228 $7,473 1.6x 0.5x 19.5% 2012 18.6% 49BSREP II 2015 $9,000 $5,186 $5,578 $179 $5,652 1.1x 0.0x 12.0% 2015 13.0% 51

Exhibit 3

[Type text]

255 State Street | Boston, MA 02109 | TEL: 617.374.1300 | www.nepc.com

BOSTON | ATLANTA | CHARLOTTE | CHICAGO | DETROIT | LAS VEGAS | PORTLAND | SAN FRANCISCO

Confidential Information – For NEPC Client Use Only © Copyright 2017 NEPC, LLC All Rights Reserved

NEPC Fund Tear Sheet

Brookfield Strategic Real Estate Partners III Global Opportunistic Real Estate Fund

Written by NEPC Research as of November 2017.

General Fund Information

Fund Name Brookfield Strategic Real Estate Partners III or “BSREP III”

Fund Manager Brookfield Asset Management / Brookfield Property Group

General Partner Main Address

250 Vesey Street, 14th Floor New York, NY 10281

Target Strategy Opportunistic Target Net Return 16% / 1.7x

Classification Direct Debt or Equity Fund Equity

Target Geography Global (US 50%) Target Property Types Diversified

Target Fund Size / Hard Cap $10 billion / TBD Expected Final Close Q3/Q4, 2018

Capital Raised to Date

N/A (1st close December 2017) Closes to Date N/A

1. NEPC provides investment consulting advice to the Brookfield Properties 401(k) Plan. Brookfield Properties (NYSE: BPO) is a subsidiary of Brookfield Asset Management Inc. (NYSE: BAM), a global asset manager.

Exhibit 4

Brookfield Strategic Real Estate Partners III Global Opportunity Fund

Confidential Information – For NEPC Client Use Only © Copyright 2017 NEPC, LLC All Rights Reserved 2

Executive Summary

Brookfield Asset Management (“Brookfield,” the “Manager”, or the “Firm”) is targeting $10 billion for Brookfield Strategic Real Estate Partners III (“BSREP III” or the “Fund”). Similar to Brookfield’s previous opportunity funds, BSREP III will target a diversified pool of real estate investments across property types and geographies globally where the Manager has significant presence and market expertise. Since 2006, Brookfield’s opportunistic real estate funds series have invested approximately $17 billion of equity, of which 80% have been distributed to-date, achieving a total aggregate net IRR of 24.5% and net equity multiple of 1.5x. Brookfield has achieved its success through a multifaceted approach to acquiring high-quality assets on a value basis through corporate platforms, distressed loans and securities, or direct asset acquisitions. This multi-pronged approach, combined with large scale execution capabilities that few other real estate investment managers can match, provide a highly competitive advantage in the global marketplace. In addition, Brookfield utilizes a unique operating model approach to underwriting assets and implementing operational improvements post-acquisition through its vertically integrated platforms. Brookfield’s global real estate investment business is built up of specialty verticals in office ($65B AUM), retail ($50B AUM), residential ($10B AUM), industrial ($4B AUM), hospitality ($9B AUM), and other niche sectors ($11B AUM), each one of which can stand on its own as an operating business. BSREP III is targeting a 16% net internal rate of return and a 1.6x equity multiple or greater.

Brookfield Asset Management is a global investment manager focusing on alternative asset strategies, including real estate, infrastructure, power and private equity. Brookfield is one of the largest global alternatives investment managers with approximately $250 billion of assets under management. The Firm is co-headquartered in New York and Toronto, with additional investment offices in London, Rio de Janeiro, Sydney, Abu Dhabi, Hong Kong and Mumbai. Brookfield employs approximately 70,000 employees, including over 700 investment professionals at the corporate level globally. The Firm is publicly traded (NYSE: BAM).

Brookfield was founded in 1899 as the São Paulo Tramway, Light and Power Company and had previously been operating under the name Brascan until 2005. It began a major expansion of its real estate business in the early 1990s. Initially an owner-operator, Brookfield has transitioned over the past decade to an asset manager, building out a platform of private fund vehicles. The Firm has maintained the owner-operator mentality through significant investment in all of its private fund vehicles. Today, Brookfield invests in real estate through its wholly-owned subsidiary, Brookfield Property Group (”BPG”), which manages approximately $150 billion in real estate-related assets. BPG employs approximately 250 professionals, and is further supported by Brookfield’s vertically-integrated property platforms, which include specialties in office, retail, residential, industrial and hospitality.

BSREP III will target opportunistic investments globally, with approximately 50% of the allocation in the United States, with the balance invested in Western Europe and other developed markets in Asia and South America. The Fund charges a base management fee of 1.50% on committed capital and 20% carried interest (with 60/40 catch up), above an 8% preferred rate of return. Brookfield plans to hold a first close in late Q4 2017 and expects the Fund to close by the fourth quarter of 2018.

Preliminary Advantages & Concerns

Preliminary Advantages

Strong relative and absolute performance: Brookfield has invested approximately $17 billion of equity through its five opportunistic real estate funds since 2006, generating a 24.5% net IRR and a 1.5x net TVPI multiple to-date. Brookfield’s four initial opportunity funds (vintage years 2006-2012) have all generated or are tracking to top quartile performance relative to its respective vintage year benchmarks. Brookfield Strategic Partners II (2015) is still relatively young and performance is not yet meaningful.

Vertically integrated platform provides operational expertise and sourcing capabilities: Brookfield's strategy of investing in large specialty real estate companies provides operational expertise across property verticals. The Manager has several platforms specializing in office, retail, residential, multifamily, industrial, and hotel, in which the broader firm can draw upon for expertise. The operating platforms provide competitive sourcing capabilities and aid in more detailed underwriting pre-acquisition, and enhanced value creation post-acquisition.

Competitive advantage with large, complex platform transactions: Brookfield has

a proven track record of successfully investing in large, complex transactions. Few other managers are large enough to access these deals which have often allowed the Firm to gain access to off-market transactions that were never marketed in a broad auction. As such, Brookfield has a competitive advantage in being a targeted buyer or partner for quality assets and portfolios at favorable cost basis. In addition, as compared to a specialist manager, Brookfield's deep experience in most property types and geographies allows it to compete for a wide array of opportunities.

Exhibit 4



Large, competitive scale: As one of the largest real estate owners globally, Brookfield

is often presented with unparalleled access to information and attention from brokers, which can be advantageous in leasing space for portfolio assets. The sheer scale of the platform also allows Brookfield to negotiate favorable terms with lenders, which can manifest in low interest rate loans, flexible covenants, or workout extensions should a distressed market environment impact holdings.

Integrated global insights: Brookfield is one of the largest globally alternatives

managers with investment expertise across public/private markets, the capital stack, and risk/return spectrum. Brookfield can identify and utilize real time proprietary data from its real estate portfolios across the globe and act on trends ahead of the broader market. Additionally, the team can leverage Brookfield’s expertise in private equity, infrastructure, and other opportunities across the global platform to gain powerful synergistic insights.

Significant GP commitment provides alignment with limited partners: Brookfield

will commit $2.5 billion for BSREP III (which will comprise approximately 25% of the $10 billion fund target). Brookfield is typically the largest investor in each fund. This philosophy of significant Firm commitments can help to provide better alignment with limited partners. As context, many other private equity real estate managers typically commit approximately 2% of fund capital.

Preliminary Concerns

Multiple pools of real estate capital: Brookfield has eleven other real estate vehicles

launched within the last six years, including debt strategies and sector specific funds in value-add multifamily, office trust, hospitality and India funds. The Manager states that these funds have different strategies than that of BSREP III (either core-plus or sector/ country specific) and, as such, will not compete with BSREP III. The Manager has a Conflicts Committee to manage any potential conflicts among funds. Fund advisory committees are also apprised of any potential conflicts.

Potential conflicts with a vertically integrated platform: Similar to any vertically

integrated real estate operation, there is a risk that Brookfield will choose its own operating platform (instead of a third party) to manage investments and, thereby, receive additional fees. Operating affiliates will also be entitled to property management and other fees at customary market rates. The operating affiliates do not receive acquisition or disposition fees. Finally, the operating platforms can provide benefits for BSREP III through sourcing, underwriting and value-creation of the investments. The LPAC will provide oversight and approval of these fees.

One fund carried at a loss: The Manager invested a 2006 vintage year Brazil retail-

focused fund that is underperforming. This fund is currently marked at a loss and in local currency (Real), the fund is marked at a -5.5% net IRR, and 0.7x net TVPI multiple. The fund’s assets have been negatively impacted by a combination of the global financial crisis, downward macro-economic pressure on retail sales, delays in expansion/ development approvals, and higher capitalized interest. The Manager believes that the assets’ current carrying values do not reflect their true intrinsic values and expects that completion of construction and ongoing operational improvements will ultimately be accretive to the fund’s returns. In Q2 2017 the terms of the fund were amended to provide decision making authority to a designated LPAC. Although this strategy was much more focused than the Firm’s multi-sector opportunity fund series, BSREP III may have exposure to assets in Brazil.

GP commitment is made by Firm rather than by individuals: Brookfield invests

significant capital in each fund (generally it is the largest investor). This capital is funded from the Firm's balance sheet rather than from Firm individuals. A potential concern with this is that there will be less alignment with Limited Partners (“LPs”), than if the investment had come from a Firm individual. Mitigating this concern is that senior executives of Brookfield are substantial owners of Brookfield (approximately 20%). The Firm's investment in BSREP III is significant at 25% of the Fund's target raise.

No hard cap: The Manager is targeting $10 billion for Fund III but has not yet

established a hard cap. Brookfield anticipates putting a hard cap on the Fund at the first close. The lack of a hard cap could lead to the Manager needing to deploy capital in a less prudent manner.

Exhibit 4



Key Biographies

Name / Position Yrs. with Firm Experience

Brian Kingston

Senior Managing Partner, CEO Brookfield Property Group

16 Brian is a Senior Managing Partner and Chief Executive Officer of Brookfield Property Group and Brookfield Property Partners. Since Mr. Kingston joined Brookfield in 2001, he has been engaged in a wide range of merger & acquisition activities, including Brookfield’s investments in Canary Wharf, O&Y REIT and O&Y Corp., Trizec Properties and Multiplex. From 2008 to 2013 he led Brookfield’s Australian business activities, holding the positions of CEO of Brookfield Office Properties Australia, CEO of Prime Infrastructure and CFO of Multiplex. Mr. Kingston serves as a member of the Investment Committee and Director of Brookfield’s real estate company-affiliated boards, including GGP and Canary Wharf.

Mr. Kingston received a Bachelor of Commerce degree from Queen’s University.

Ric Clark

Senior Managing Partner, Chairman Brookfield Property Group

33 Ric is a Senior Managing Partner and Global Head of Brookfield’s real estate group, Brookfield Property Group, and Chief Executive Officer of Brookfield Property Partners, the flagship publicly listed company. He is Chairman of the board of directors of Rouse Properties, and a member of the board of directors of General Growth Properties and IDI. He has over 30 years of real estate experience. Ric has been employed by Brookfield and its predecessors since 1984 in various senior roles including President, Chief Executive Officer and Chairman of Brookfield Office Properties. Under Ric’s leadership, Brookfield Office Properties became a global office business with portfolio acquisitions in London and Australia and expansions into Los Angeles, Houston and Washington, D.C. Ric also initiated Brookfield’s development business, executing multiple ground-up development projects around the globe.

Mr. Clark holds a Bachelor of Science in Business from the Indiana University of Pennsylvania

Bill Powell

Senior Managing Partner, COO of Brookfield Property Group

15 Bill Powell is a Senior Managing Partner of Brookfield and is Chief Executive Officer of Brookfield Australia. He is also the manager of Brookfield’s global financial risk management activities. Previously, Mr. Powell was a partner in Brookfield’s real estate mezzanine debt fund (BREF). Prior to joining Brookfield, he held various senior management positions within the real estate capital markets groups at several investment management firms.

Mr. Powell received his Bachelor of Science in Accounting from the University of Richmond and his MBA from the Darden School of the University of Virginia.

Preliminary Firm & Strategy Evaluation

Firm History

Brookfield Asset Management is a global investment manager focusing on alternative asset strategies, including real estate, infrastructure, power and private equity. The Firm is headquartered in New York with additional offices in Toronto, London, Rio de Janeiro, Sydney, Abu Dhabi, Hong Kong and Mumbai. The Firm was founded in 1899 as the São Paulo Tramway, Light and Power Company and had previously been operating under the name Brascan until 2005. Brookfield employs approximately 70,000 employees, 700 investment professions and 140 dedicated Fund professionals. Brookfield is publicly traded company (NYSE: BAM). Senior Brookfield employees own 20% of the Firm’s shares.

Brookfield began a major expansion of its real estate business in the early 1990s. Initially an owner-operator, Brookfield has transitioned over the past decade to an asset manager. It has maintained the owner-operator mentality through significant investment in all of its private fund vehicles. Brookfield invests in real estate through its wholly-owned subsidiary, Brookfield Property Group, which manages approximately $150 billion in real estate-related

Exhibit 4



assets. BPG employs over 140 dedicated investment professionals and is further supported by Brookfield’s vertically-integrated operating platforms. These sector-specific platforms specialize in office, retail, residential, multifamily, industrial and hotel assets.

The operating platforms are central to Brookfield’s investment strategy. The Manager relies on these platforms for off-market sourcing, deal underwriting, and hands-on asset management post-acquisition. Platforms include entities such as General Growth Properties (retail), Brookfield Office Properties, and Fairfield Residential (multifamily). Brookfield owns these entities on balance sheet (e.g., Brookfield Office Properties is a publically-traded REIT) and through private equity funds (e.g., General Growth Properties is owned through the Real Estate Turnaround fund). As Brookfield continues to develop its private equity real estate fund business, the operating partners will be owned through funds rather than on the balance sheet. These funds tend to have long fund lives (10 years), which adequately matches the Manager’s business plan for each operating platform.

Investment Strategy

Brookfield’s investment strategy is to acquire positions of control or influence in real estate companies, distressed loans and securities on an attractive cost basis, and to utilize Brookfield’s operating platforms to employ an operations-based approach to increase value after acquisitions. The Fund will target investments in direct property, equity positions in real estate companies, distressed debt, toe-hold positions in debt and equity securities, and control-oriented loan originations. The Fund will focus on large, complex, distressed turnarounds or recapitalizations. A significant allocation of the Fund (approximately 70%) will be invested in large-scale platform investment with an average equity size of $700 million. The balance of the Fund will be invested in mid-cap property investments with typical equity commitment of at least $100 million. The target markets will include North America/ US (approximately 50%), and in other markets in Europe, Asia and South America, where the Manager has a specific expertise. In general, the Manager will look to benefit from the operational expertise of its many operating platforms in order to source, underwrite and manage investments.

Portfolio Construction

Projected Number of Investments 30-45 investments

Target Deal Size At least $100 million of equity

Portfolio Constraints

No more than 20% in any single investment No more than 20% in development transactions No more than 20% in assets located outside of

investment grade countries

Expected / Maximum Use of Leverage

50-65% expected leverage at Fund level / 70% leverage limit at Fund level (no asset level leverage limit)

Past Firm/Fund Issues/Litigation

Brookfield has indicated it is not aware of any criminal or civil action relating to investments or investment-related businesses that the Firm believes would be material to an investor’s evaluation of BSREP III. Brookfield has 70,000 operating employees globally across 100 offices and, as such, it is anticipated that the Firm will from time to time become involved in legal disputes. Brookfield will provide additional details if desired.

Exhibit 4



Fund Characteristics & Administration

Investment Vehicle Brookfield Strategic Real Estate Partners III

Fund Structure Delaware Limited Partnership

General Partner Brookfield Asset Management / Brookfield Property Group

Investment Period Four Years from the final close

Fund Term Ten Years, with two one-year extensions

Expected Fund Investor Base Pensions, Endowments, Foundations, High-Net-Worth, etc.

Minimum Investment Size $10 million (GP may accept smaller amounts)

Sponsor’s Investment $2.5 billion

Annual Management Fee 1.5% on Committed/ Invested Capital

Organizational Costs Up to $6 million

Preferred Return 8% preferred return; see below

Carried Interest 20% of profits, over 8% preferred return

Distribution Waterfall 1. 100% to LP until LP has received a 8% IRR 2. 40% to LP and 60% to the GP until GP has received 20% of profits 3. 80% to LP and 20% to the GP thereafter

Key Person Provision

If prior to the expiration of the commitment period, there ceases to be at least (a) two senior executives (as defined below) and (b) six key personnel (as defined below), in each case who are devoting substantially all of their business time and attention to the property business, then the GP will notify the limited partners of such key person event. “Senior executives” means each of Ric Clark, Brian Kingston and Bill Powell. “Key personnel” means each of the senior executives and David Arthur, Lowell Baron, Jay Cornforth, Steven Ganeless, Brad Hyler, Ashley Lawrence, Jon Moore, Dan Teper, Zach Vaughan.

ERISA Provisions The GP will use reasonable efforts to ensure that the Fund's assets do not constitute “plan assets” under ERISA.

UBTI Considerations The General Partner will use its reasonable best efforts to minimize UBTI through various ownership and vehicle structures.

Labor Policy N/A

Fund Auditor Deloitte & Touche

Fund Legal Counsel Fried, Frank, Harris, Shriver & Jacobson LLP

Placement Agent(s) N/A

Website http://www.brookfield.com/

Exhibit 4



Past Fund Track Record

Note: $ in millions; data as of 06/30/2017, and provided by the Manager.

Fund-Level Returns

Fund Vintage YearCapital

CommittedCapital Funded

Reported Value

Amount Distributed

Total Value, Net of Carry

TVPI Multiple

DPI Multiple Current Net IRR

Real Estate Opportunity Fund I 2006 242.0$ 382.5$ 88.5$ 445.4$ 527.8$ 1.4x 1.2x 8.9%Real Estate Opportunity Fund II 2007 262.0$ 359.2$ 14.0$ 548.1$ 562.1$ 1.6x 1.5x 15.7%Real Estate Turnaround 2009 5,565.0$ 3,822.0$ 17.5$ 7,926.0$ 7,943.5$ 2.1x 2.1x 34.5%Strategic Real Estate Partners I 2012 4,350.0$ 4,649.0$ 5,925.6$ 2,227.8$ 7,473.4$ 1.6x 0.5x 19.5%Strategic Real Estate Partners II 2015 9,000.0$ 5,185.8$ 5,577.7$ 179.3$ 5,652.3$ 1.1x 0.0x 12.0%

Vintage Year Benchmarking Analysis

Net IRR Brookfield Asset Management Vintage Year Benchmark Net IRR Comparison

Vintage Year Fund Current Net IRR Quartile # FundsUpper

QuartileMedian Lower

Quartile2006 Real Estate Opportunity Fund I 8.9% 1 64 5.0% (0.1%) (4.2%)2007 Real Estate Opportunity Fund II 15.7% 1 93 8.1% 3.1% (3.8%)2009 Real Estate Turnaround 34.5% 1 39 18.6% 11.9% 9.2%2012 Strategic Real Estate Partners I 19.5% 1 49 18.6% 13.1% 9.1%2015 Strategic Real Estate Partners II 12.0% 2 51 13.0% 8.6% (0.5%)

DPI Multiple Brookfield Asset Management Vintage Year Benchmark DPI Multiple Comparison

Vintage Year FundDPI

Multiple Quartile # FundsUpper


Quartile2006 Real Estate Opportunity Fund I 1.2x 2 64 1.2x 0.8x 0.4x2007 Real Estate Opportunity Fund II 1.5x 1 93 1.3x 0.9x 0.5x2009 Real Estate Turnaround 2.1x 1 39 1.7x 1.3x 1.0x2012 Strategic Real Estate Partners I 0.5x 3 49 0.9x 0.5x 0.3x2015 Strategic Real Estate Partners II 0.0x 3 51 0.1x 0.1x 0.0x

TVPI Multiple Brookfield Asset Management Vintage Year Benchmark TVPI Multiple Comparison

Vintage Year FundTVPI

Multiple Quartile # FundsUpper


Quartile2006 Real Estate Opportunity Fund I 1.4x 1 64 1.3x 1.0x 0.7x2007 Real Estate Opportunity Fund II 1.6x 1 93 1.4x 1.2x 0.8x2009 Real Estate Turnaround 2.1x 1 39 1.8x 1.5x 1.3x2012 Strategic Real Estate Partners I 1.6x 1 49 1.5x 1.4x 1.3x2015 Strategic Real Estate Partners II 1.1x 2 51 1.2x 1.1x 1.0x

Note: Benchmark data as of 06/30/2017. Benchmark is the Cambridge Associates Thomson One Global Value-Add & Opportunistic Closed-End Real Estate fund benchmark.

Exhibit 4



Investment-Level Performance Analysis

Note: TVPI multiple represents the ratio of realized + current value to capital funded. Current value is based on the fair market value. Investment-level data is as of 06/30/17 and provided by the Manager.

Exhibit 4



Aggregate Investments – Total Value to Paid-In-Capital (TVPI) Deal Frequency Analysis

Note: TVPI multiple represents the ratio of realized + current value to capital funded. Current value is based on the fair market value. Investment-level data is as of 06/30/17 and provided by the Manager.

1%

4%

0%

52%

13%

7%

22%

0%0%

10%

20%

30%

40%

50%

60%

70%

<= 0.50x 0.51x to<1.00x

1.00x 1.01x to1.50x

1.51x to2.00x

2.01x to2.50x

2.51x to3.00x

> 3.00x

Investment-LevelGross TVPI Multiple Dispersion for Investments

(Capital Weighted)

0% 1%

23%

0%

42%

7%

26%

0%

10%

20%

30%

40%

50%

60%

<= (1.00x) (0.99x) to<(0.50x)

(0.49x) to(0.01x)

0.00x 0.01x to0.50x

0.51x to1.00x

> 1.00x

Investment-LevelGross TVPI Multiple Out/(Under) Performance

(Capital Weighted)

Exhibit 4

Brookfield Strategic Real Estate Partners III

STAT E UNIVERSIT IES RET IREM ENT SYST EM O F ILL INO ISFLAG SHIP G LO BAL O PPO RT UNIST IC REAL ESTAT E FUNDQ 3 2 0 1 7

Confidential – For Institutional and Qualified Investor Use Only

Please refer to Notice to Recipients on last page.

Brookfield Asset Management Inc. (“BAM” or “Brookfield Asset Management” or the “Firm”, together with its affiliates, “Brookfield”) is pleased to present State Universities Retirement System of Illinois, at itsrequest, with the following information pertaining to Brookfield Strategic Real Estate Partners III (“BSREP III” or the “Fund”). The information/responses contained in this document are provided for informationalpurposes only and are necessarily general in nature. No agreement is being made hereby as to the terms and scope of your investment in any particular investment vehicle sponsored by Brookfield or itsaffiliates, the terms of which will be determined through a negotiation with you or your representative(s) and any other limited partners. Prior to making an investment in the Fund, please refer to, and reviewcarefully, the Fund’s partnership agreement (as amended, the “LPA”) for additional details. Capitalized terms used herein, but not otherwise defined, have the meanings ascribed to them in the Fund’s privateplacement memorandum (together with any supplements, the “PPM”). The information provided herein is qualified in its entirety by the Partnership Agreement and the PPM.

Exhibit 5

2

Executive Summary

Brookfield Strategic Real Estate Partners III (“BSREP III” or the “Fund”) is the continuation of our flagship global opportunistic real estate program

Please refer to endnotes on page 27.

Fund Offering

• Expecting capital commitments of $10 billion, including $2.5 billion to be committed by Brookfield

• Targeting a gross IRR of 20% (16% net) and a 2.0x gross multiple of capital (1.7x net)1

Investment Strategy

• Invest globally with a focus on markets where Brookfield has a significant presence and extensive market experience and knowledge

• Acquire positions of control or influence in real estate companies, direct asset acquisitions and distressed loans and securities

• Focus on multi-faceted transactions to acquire high-quality assets on a value basis

• Leverage Brookfield’s operating businesses to seek to create value

Compelling Opportunity to Invest

• Since 2006, we have deployed ~$17.5 billion globally in high-quality multi-sector opportunistic investments through predecessor vehicles, of which ~$13 billion has been realized to date2

• Due to scale and restructuring expertise, we believe Brookfield is well-positioned to execute multi-faceted transactions where value can be unlocked, capitalize on economic growth opportunities as well as opportunities resulting from situational distress

• Brookfield’s property-level focus and expertise are expected to drive opportunistic returns at multiple stages of the market cycle

Exhibit 5

3

Brookfield’s Investment Approach

We seek to apply the three key components of our investment approach in building BSREP III’s portfolio

Acquire High-Quality

Assets

Invest On a Value

Basis

Enhance Value Through

Operations

Exhibit 5

4

Opportunistic Investing

To implement our opportunistic investment strategy, we seek to:

• Execute multi-faceted transactions through restructuring, recapitalization, and public-to-private expertise to invest on a value basis at a discount to intrinsic value

• Create long-term value in our investments by applying corporate finance, mergers and acquisitions, and restructuring capabilities

• Unlock value from high-quality assets through redevelopment and development initiatives to increase sustainable cash flows and reduce risk

• Drive value through clearly-defined strategies for operational improvement

• Protect against downside through structuring and prudent use of leverage

Gazeley, GermanyCenter Parcs, U.K. Wynyard, Australia

Exhibit 5

5

Brookfield Strategic Real Estate Partners II

(“BSREP II”)$9.0B in commitments4

$7.9B Invested6

88% Committed7

Brookfield Strategic Real Estate Partners I

(“BSREP I”)$4.4B in commitments4

$5.1B Invested8

61% Realized5

Demonstrated Ability to Invest Opportunistically

Since 1987, we have invested ~$47B of equity in real estate, including ~$17.5B through five multi-sector opportunistic real estate funds of which ~$13B has been realized to date1


2006 2012 2015

Real Estate Opportunity Fund I

$242M in commitments

2007

Real Estate Opportunity Fund II

$262M in commitments

2009

Real EstateTurnaround

$5.6B in commitments

1.8x(1.6x)CURRENT GROSS MOC (NET)2

28.4%(25.0%)CURRENT GROSS IRR (NET)2

2.3x(2.0x)PROJECTED GROSS MOC (NET)2,3

26.0%(23.0%)PROJECTED GROSS IRR (NET)2,3

2014

Opportunistic Real Estate Funds Composite Performance

Exhibit 5

6

Brookfield’s Global Real Estate Business

Our strong property level focus, global on-the-ground presence and operating capabilities enable us to drive returns throughout real estate market cycles

United States$103B AUM

Asia Pacific$15B AUM

Europe & Middle East$26B AUM

Canada$6B AUM

Brazil$2B AUM


OFFICE$66B AUM• 262 properties• 131 million square feet (“sf”)

RETAIL3

$51B AUM• 172 properties• 152 million sf

MULTIFAMILY4

$9B AUM• 160 managed properties • 45,000 managed apartments

INDUSTRIAL$5B AUM• 183 properties• 47 million sf

HOSPITALITY $9B AUM• 19 hotels

ALTERNATIVES$12B AUM• 324 triple net leases• 203 self-storage properties• 29 student housing assets• 135 manufactured housing communities

Development | Leasing | Renovations | Property Management | Marketing | Tenant Management |

250PROFESSIONALS1

16,000EMPLOYEES MANAGED GLOBALLY2

$152BASSETS UNDER MANAGEMENT

Exhibit 5

7

Organizational Structure

Bill PowellSenior Managing PartnerChief Operating Officer

Bryan DavisManaging Partner Chief Financial Officer

Brett FoxManaging PartnerGeneral Counsel

Sophie FallmanManaging PartnerCOO – Real Estate Funds

Cristiano MachadoSenior Vice PresidentCFO – Real Estate Funds

Experienced Investment Oversight

Investment Team Leadership

Portfolio Management

Jan SuchardaManaging PartnerOffice

Jay CornforthManaging PartnerIndustrial

Ashley LawrenceManaging DirectorRetail

Matt SmithSenior Vice President Multifamily

Shai ZeleringManaging DirectorHospitality

Brad HylerManaging Director

Marcelo Vainstein Investment Director

Seamus ForanSenior Vice President

Ankur GuptaSenior Vice President

Lowell BaronManaging Partner

Dan TeperManaging Director

Steven GanelessExecutive Vice President

Jonathan MooreManaging Director

Bruce WilesManaging Partner

Bruce Flatt2

Senior Managing PartnerCEO, Brookfield Asset Management

Brian Kingston2

Senior Managing PartnerCEO, Brookfield Property Group

Ric Clark2

Senior Managing PartnerChairman, Brookfield Property Group

Bill Powell2Senior Managing PartnerChief Operating Officer, Brookfield Property Group

Regional Heads Zachary VaughanManaging Partner Europe

David ArthurManaging Partner Canada & Brazil

Roberto PerroniManaging Partner Brazil

Anuj RanjanManaging PartnerIndia & Middle East

Stuart MercierSenior Vice PresidentAsia Pacific

The Fund will be led by senior investment professionals with an average of ~25 years of real estate and investing experience1


Jeff BlidnerVice Chairman, Brookfield Asset ManagementCEO, Private Funds Group

Brian LawsonSenior Managing PartnerChief Financial Officer, Brookfield Asset Management

Barry Blattman2

Vice Chairman, Brookfield Asset Management

Exhibit 5

8

Brookfield’s Competitive Advantages

Multi-faceted Transactions

Contrarian Investments

BuildingBusinesses

Leveraging Operational Expertise

Multi-faceted Transactions

Exhibit 5

9

BSREP I: IDI Gazeley (2012/2013)1 Building businesses Operational expertise

Multi-faceted transactions Contrarian investments

Magna Park Kassel, Germany


• Positioned to capitalize on the growing demand for high quality logistics space

• Developed and delivered 25 million sf of new space, a key advantage in growing global client relationships

• Leased over 40 million sf to achieve 95% occupancy

• Sold $2.0 billion of properties to re-weight the portfolio from non-core locations to prime logistics markets

• Increased rent by 12% on rollover leases

• Streamlined and strengthened the organization

• Signed agreement in October 2017 to sell Gazeley to Global Logistics Properties for US $2.8 billion5

Assembled a 45 million sf global logistics operating business through the acquisition of three industrial companies in North America and Europe

Exhibit 5

10

BSREP I: Ginkgo Palmetto (2012/2013)1

• Acquired 9,100 units at a discount to replacement cost as a result of prior owner’s over-leverage

• Renovated 90% of apartments to increase rents by 16% and deliver average return on capital of 26%2,3

• Grew margins through operational efficiencies

• Optimized tenant renewals through new marketing strategies

• Refinanced and exited majority of portfolio, capitalizing on favorable debt and capital markets

• As of August 2017, BSREP I has fully exited the Ginkgo and Palmetto investments

Ginkgo Palmetto, United States

Building businesses Operational expertise


Acquired two under-managed multifamily portfolios in U.S. growth markets with renovation upside and margin improvement potential


Exhibit 5

11

BSREP I: Wynyard Properties (2012)1

Wynyard Place

• Portfolio included a high cash-yielding development site, seven hotels and several non-core properties

• Secured all entitlements for ~806,000 sf office and retail development above a main metro station4

• Pre-leased 45% of the office space to a major bank

• Acquired several adjacent properties to development site to capitalize on improved area

• Disposed $293 million of non-core properties and repositioning remaining hotels

• In September 2017, sold on a forward basis, a 50% interest in the A$1.9 billion fully completed development at a benchmark average cap rate of 4.75%6

Wynyard Place, Australia



Executed a take-private of a diversified real estate company to acquire a prime development site in Central Sydney at a deep discount to value


Exhibit 5

12

BSREP I: Candor Office (2014)1

• Resolved complicated ownership issues and distress through 100% acquisition to unlock value

• Executed a “contrarian” investment that has since capitalized on India’s economic rebound

• Creating value through development, leasing and tenant management

• Leased 4 million sf to date

• Completed 3 million sf of development to increase the operating area by ~40%

• Refinanced entire portfolio ($625 million) to lower interest rates and reduce FX exposure

• ~35% increase in market rents

Candor Office Parks (G2), India



Acquired one of the largest, high-quality office portfolios in India (15.5 million sf) for deep value due to fractured ownership structure and management issues


Exhibit 5

13

BSREP II: Simply Self Storage (2015)1

• Fragmented sector with strong fundamentals and potential for high growth rates

• Hired key leaders to complement management team

• Acquired 100 additional stabilized properties to more than double the size of the original portfolio

• Developing additional properties in what Brookfield believes are high growth markets

• Expanding high-performing assets

• Seek to drive increase in occupancy and rents through operating and technology improvements

• 1.3 million sf of development properties7

• 163% growth in operating area

Simply Self Storage, United States



Acquired Simply Self Storage through an established relationship in an off-market transaction


Exhibit 5

14

BSREP II: Center Parcs (2015)1

• Acquired alongside co-investors to take advantage of scale in executing transaction

• Grow cash flows through ~£208 million investment in capex and operational improvements

• Developing new lodges and accommodation types to drive ADR

• Upgrading IT systems and other initiatives to increase revenue and drive on-parc spend

• Commenced construction on development of new 500 lodge village in Ireland

• 2 million visitors per annum8

Center Parcs, U.K.



Targeted acquisition due to stable, resilient cash flows in high-barrier-to-entry market with compelling operational upside potential


Exhibit 5

15

BSREP II: Rouse Properties (2016)1

• Unlocking value in outdated retail centers through transformational redevelopments

• Creating “experiential” shopping destinations to meet retailer and consumer demands

• Partnering with other areas of Brookfield to develop mixed-use properties (e.g. multi-family, hotel)

• Leveraging management’s expertise to target acquisitions arising from shifting market dynamics

• Disposing of stabilized and non-core properties to recycle capital into higher return redevelopments

Rouse, United States



Take-private of a U.S. retail company to capitalize on low public market valuation


Exhibit 5

16

Opportunistic Market Conditions

We believe global markets continue to provide opportunity for higher yielding real estate investments1

UNITED STATES• Stable GDP growth• Real estate fundamentals positive• Consolidation opportunities in alternative

property sectors• ‘Non-core’ assets may be sold by REITs• Depressed valuations in retail sector • Shortage of affordable/workforce housing

BRAZIL• GDP growth and declining inflation• Limited competition for large-scale

transactions• Favorable supply outlook in office sector• Shortage of modern industrial product

CANADA• Positive economic and immigration growth • Energy markets remain challenged• Select hospitality and multifamily in

gateway markets• Depressed valuations in retail sector• Consolidation in alternative asset classes

AUSTRALIA • Transition into non-resource based economy• Continued low volatility and interest rates• Opportunities in secondary markets • Fragmented alternative property sectors

U.K. & CONTINENTAL EUROPE• Private markets navigating political uncertainty• Real estate fundamentals improving• Limited competition for large-scale transactions• Low valuations of office REITs• New supply is limited • Emerging Private Rented Sector (“PRS”) in U.K.

INDIA• Strong GDP growth and real estate

fundamentals • Progressive economic policy &

encouragement of foreign investment• Large-scale office transactions on an off-

market basis• Industrial development stemming from cross-

border trade and dated industrial assets • Distressed asset sales by government-owned

banksCHINA• Monetary policy being used to control

liquidity and credit• Continuing rise of middle class will drive

demand• State-owned enterprises divesting ‘non-

core’ assets• Shortage of office space in Shanghai and

Beijing• Increasing demand for cold storage facilities


Exhibit 5

17

BSREP III Profile

BSREP III seeks to target similar investment allocations as its predecessor funds, BSREP I and BSREP II1

50%50%

Large Scale / Portfolio Investments

U.S. Non U.S.

30%

70%

Targeted Investment Allocation

Asset Acquisitions Large Scale / Portfolio Investments


Exhibit 5

18

Conclusion

We believe BSREP III is a compelling and timely investment opportunity

• Scale on five continents

• Experienced leadership

• 100-year history of investing in real assets

• Significant operational expertise

• Disciplined investment approach and on-the-ground expertise

• Well-established structuring capability

• Established real estate track record

• Significant sponsor capital alongside institutional partners

• $2.5 billion sponsor commitment

An Industry-Leading Real Estate Asset

Manager

Proven Investment

Strategy

Strong Alignment of Interests

Exhibit 5

19

BSREP I and BSREP II Information

Exhibit 5

20

BSREP I Fund Overview

Historic Portfolio Composition by Invested / Committed Capital4

$4.4BLPCOMMITMENTS1

$5.1BINVESTEDCAPITAL2

26# OF INVESTMENTS

$2.5BLP DISTRIBUTIONS3


50%

33%

7%6%

4%

North America EuropeIndia AustraliaChina

25%

20%

16%

15%

13%

10%

Industrial Debt NNN/RetailOffice Hospitality Multifamily

Exhibit 5

21

BSREP I Fund Details1

Retail$202 millionPortfolio of 4 million sf of retail and mixed-use properties in ideal locations in downtown Shanghai CBD and the HongqiaoTransportation Hub

Office$791 millionPortfolio of ~50 campus-style office properties located primarily in major California submarkets, and five high-quality office parks, located mainly in New Delhi

Hotels & Mixed Use$682 millionPortfolio of nine North American hotels and four Australian hotels, as well as a development property in a prime Sydney location

NNN Retail$600 millionNNN-Retail REIT platform consists of over 320 properties located across 36 states

Industrial$1.3 billionNorth America and European industrial portfolio comprised of ~200 operating and development properties

Multifamily$522 millionPortfolio of ~40 Class B apartment communities located in the southeast U.S. and New York City


Exhibit 5

22

52%

16%

6%

5%3%

1% 7%

12%

North America UKBrazil South KoreaIndia ChinaFund Reserve Uncommitted Capital

16%

12%

14%

10%8%7%

7%

7%

1% 7%

12%

Hospitality RetailOffice MultifamilySelf Storage Mixed UseStudent Housing Manufactured HousingIndustrial Fund ReserveUncommitted Capital

BSREP II Fund Overview

$9.0BLPCOMMITMENTS1

$7.9BINVESTED / COMMITTED CAPITAL2

22# OF INVESTMENTS

Historic Portfolio Composition by Invested / Committed Capital3


Exhibit 5

23

BSREP II Fund Details1

Retail$1.0 billionPortfolio of ~40 retail malls and shopping centers spanning over 25 million sf across the U.S

Manufactured Housing$590 millionPortfolio of 135 manufactured housing communities comprising 32,000 pads across 13 U.S. states

Office$1.2 billionPortfolio of over 9.0 million sf of office buildings located primarily in Brazil and the U.S.

Self-Storage$750 millionPortfolio of ~200 self-storage properties located throughout the U.S. representing almost 115,000 units

Mixed Use$673 millionPrime office, retail and hotel complexes centrally located in Seoul and Mumbai

Hospitality$1.4 billionFive short break U.K. holiday destinations, a preferred equity investment in a select service hotel company and five hotels located in the U.S. and Canada

Multifamily$939 millionPortfolio of over 55 apartment communities located throughout the U.S. representing ~11,900 units

Student Housing$622 millionPortfolio of 29 student housing communities (~11,000 beds) and seven development sites located in major U.K. university cities


Exhibit 5

24

Track Records

Exhibit 5

25

Opportunistic Real Estate Funds Track Record

The summary set forth below includes performance for all discretionary opportunistic real estate funds managed by Brookfield Asset Management Inc. or a management affiliate thereof (collectively, “Brookfield”). The summary excludes investments made by Brookfield directly, managed accounts, joint ventures , co-investments, publicly listed issuers and investment funds for which Brookfield did not serve as the manager during the investment period. Information regarding such investments and programs is available upon request. Prior performance is not indicative of future results and there can be no guarantee that future funds or their investments will achieve comparable results or be able to avoid losses.

Totals may not add due to rounding.Refer to notes on next slide.

As of September 30, 2017(US$ in millions, except as noted)

Inception/ Investment

DateInvestment/

Property TypeCommitted

CapitalEquity

Invested4 Realized5 Unrealized6 Total7 Gross IRR

Gross Investment

Multiple Net IRR8

Net Investment Multiple8 Gross IRR

Gross Investment

Multiple Net IRR8

Net Investment Multiple8

Real Estate Opportunity Fund I 2006 Multi-Sector $ 242 $ 331 $ 486 $ 86 $ 573 11.4% 2.0x 9.0% 1.8x 11.5% 2.0x 9.1% 1.8xReal Estate Opportunity Fund II 2007 Multi-Sector 262 324 599 7 606 20.0% 2.1x 15.8% 1.8x 19.7% 2.1x 15.5% 1.8xReal Estate Turnaround 2009 Multi-Sector 5,565 3,787 8,556 17 8,574 38.6% 2.3x 34.5% 2.1x 38.6% 2.3x 34.5% 2.1xStrategic Real Estate Partners 2012 Multi-Sector 4,350 5,108 3,098 6,899 9,996 26.8% 2.1x 22.2% 1.8x 24.0% 2.8x 20.0% 2.3xStrategic Real Estate Partners II 2015 Multi-Sector 9,000 5,329 616 5,849 6,464 14.9% 1.2x 12.5% 1.1x 19.0% 2.3x 17.0% 1.9x

Total Opportunistic9 19,419$ 14,879$ 13,355$ 12,858$ 26,213$ 28.4% 1.8x 25.0% 1.6x 26.0% 2.3x 23.0% 2.0x

Current Projected

Proceeds Performance1,2 Performance 2,3

Exhibit 5

26

Notes to Opportunistic Real Estate Funds Track Record

.(1) Reflects performance from initial investment date to September 30, 3017.

(2) “Gross IRR” and “Gross Investment Multiple” reflect performance before fund expenses, management fees (or equivalent fees), and carried interest, which would reducean investor’s return. “Net IRR” and “Net Investment Multiple” take into account fund expenses, management fees (or equivalent fees), and carried interest. Multiples maybe adjusted for recalled capital i f applicable. Prior performance is not indicative of future results and there can be no guarantee that the fund will achieve comparableresults or be able to avoid losses.

(3) Projected returns reflected herein have been prepared based on various estimations and assumptions made by the manager, including estimations and assumptionsabout events that have not occurred, any of which may prove to be incorrect. Projected returns are based on equity invested to date and equity projected to be invested,all cash flows generated to date, projected to be generated during the remaining expected holding period and the terminal value determined based on projected operatingperformance and projected capitalization rates in the applicable market. Projected net returns take into account fund expenses, management fees and carried interest paidto date and projected to be paid within the fund. Due to various risks, uncertainties and changes (including changes in economic, operational, political or othercircumstances) beyond the control of the manager, the actual results of the referenced investments could differ materially from the results expressed or implied by theprojected returns reflected herein in respect of such investments. In addition, industry experts may disagree with the estimations and assumptions used in preparing theprojected returns. IMPORTANT: The projections or other information provided herein regarding the likelihood of various investment outcomes are hypothetical in natureand do not reflect actual investment results. No assurance, representation or warranty is made by any person that any of the projected returns are accurate or will beachieved and you should not place undue reliance on the projected returns. Additional information about the estimations and assumptions used in preparing the projectedreturns and the factors that could cause actual results to differ materially from the projected returns are available upon request. In addition, please contact the manager tosee projected performance information based on different assumptions. Prior performance is not indicative of future results and there can be no guarantee that the Fundwill achieve comparable results or be able to avoid losses.

(4) “Equity Invested” represents the initial capital investment including short-term subscription facility drawdowns as applicable, follow-on investments, and capitalexpenditures.

(5) “Realized Proceeds” represents any proceeds from disposition and distributions or other forms of current income.

(6) Values ascribed to “Unrealized Proceeds” and used in determining performance results, are based on assumptions that the Manager believes are fair and reasonableunder the circumstances. The actual realized returns on current unrealized investments may differ materially from the returns shown herein, as it will depend on, amongother factors, future operating results, the value of the asset and market conditions at the time of dispositions, any related transactions costs and the time and manner ofsale, all of which may differ from the assumptions on which the valuations contained herein are based. The material assumptions made by the Manager that were appliedin determining the values will be provided upon request.

(7) “Total Proceeds" are before fund expenses, management fees (or equivalent fees) and carried interest.

(8) “Net IRR” and "Net Investment Multiple” are calculated on a fund level and not for any particular investor, and take into account fund expenses, management fees (orequivalent fees), and carried interest, if any, allocated to or paid by investors (including fees allocated to or paid by Brookfield and its affiliates as a limited partner (eitheron an actual or notional basis) based on the applicable rate per the fund’s standard investor fee schedule). As a result, the “Net” performance figures set forth herein arereflective of the average fund expenses, management fees, and carried interest, if any, allocated to or paid by investors (including, as set forth above, Brookfield and itsaffiliates as a limited partner), and therefore each particular fund investor will likely have a different, and potentially lower, performance return than those indicated under“Net” performance due to varying economic terms. The calculation in respect of any particular set of economic terms will be provided upon request. “Net IRR” and “NetInvestment Multiple” may also take into account the effects of leverage due to the temporary funding in respect of some of the investments through the use of thesubscription secured credit facility incurred at the fund-level. As a result, “Net IRRs” may be higher than what they would have been without the use of such facility.

(9) Composite returns presented are based on funds with similar investment strategies and are calculated by aggregating total cash flows of such funds.

Exhibit 5

27

Endnotes Page 21) The target returns set forth herein are for illustrative

and informational purposes only and have beenpresented based on various assumptions made byBrookfield Asset Management Private InstitutionalCapital Adviser US, LLC (“BAMPIC” or the “Manager”)in relation to the investment strategy being pursued byBSREP III, any of which may prove to be incorrect.The target returns are based on historical performancefor similar investment strategies within the sector.Target gross returns do not reflect fund expenses,management fees and carried interest, which wouldreduce an investor’s returns. Target net returns takeinto account these items. Due to various risks,uncertainties and changes (including changes ineconomic, operational, political or othercircumstances) beyond the control of the Manager, theactual performance of the Fund could differ materiallyfrom the target returns set forth herein. In addition,industry experts may disagree with the assumptionsused in presenting the target returns. No assurance,representation or warranty is made by any person thatthe target returns will be achieved and undue relianceshould not be put on them. Additional informationabout the assumptions used in determining the targetreturns and the factors that could cause actual resultsto differ materially from the target returns are availableupon request (and can be found in the privateplacement memorandum (together with anysupplements, the “Memorandum”)). Prior performanceis not indicative of future results and there can be noguarantee that the Fund will achieve the target returnsor be able to avoid losses.

2) Includes committed capital, fund reserve and equityinvested across opportunistic funds as of Q3 2017.Equity invested represents the initial capitalinvestment, follow-on investments, capitalexpenditures and short -term subscription facilitydrawdowns as applicable. Prior performance is notindicative of future results and there can be noguarantee that the Fund will achieve comparableresults or be able to avoid losses. There is noguarantee of closing investments that have not yetbeen closed upon.

Page 51) Includes committed capital and equity invested across

opportunistic funds as of Q3 2017. Equity investedrepresents the initial capital investment, follow-oninvestments, capital expenditures and short-termsubscription facility drawdowns as applicable as wellas committed capital to investment committeeapproved deals not yet closed as of Q3 2017. There isno guarantee that the funds will execute on any suchinvestments.

2) “Gross IRR” and “Gross Investment Multiple” reflectperformance before fund expenses, management fees(or equivalent fees), and carried interest, which willreduce an investor’s return. “Net IRR” and “NetInvestment Multiple” take into account fund expenses,management fees (or equivalent fees), and carriedinterest. Multiples may be adjusted for recalled capital,if applicable. “Net IRR” and “Net Investment Multiple”may also take into account the effects of leverage dueto the temporary funding in respect of some of theinvestments through the use of the subscriptionsecured credit facility incurred at the fund-level. As aresult, “Net IRRs” may be higher than what they wouldhave been without the use of such facility. Priorperformance is not indicative of future results andthere can be no guarantee that the Fund will achievecomparable results or be able to avoid losses. “NetIRR” and “Net Investment Multiple" are calculated on afund level and not for any particular investor, and takeinto account fund expenses, management fees (orequivalent fees), and carried interest, if any, allocatedto or paid by investors (including fees allocated to orpaid by Brookfield and its affiliates as a limited partner(either on an actual or notional basis) based on theapplicable rate per the Fund's standard investor feeschedule). As a result, the “Net” performance figuresset forth herein are reflective of the fund expenses,average management fees (or equivalent fees), andaverage carried interest, if any, allocated to or paid byinvestors (including, as set forth above, Brookfield andits affiliates as a limited partner), and therefore eachparticular fund investor will likely have a different, andpotentially lower, performance return than thoseindicated under “Net” performance due to varyingeconomic terms. The calculation in respect of anyparticular set of economic terms will be provided uponrequest.

3) Projected returns reflected herein have been preparedbased on various estimations and assumptions madeby the Manager, including estimations andassumptions about events that have not occurred, anyof which may prove to be incorrect. Projected returnsare based on equity invested to date and equityprojected to be invested, all cash flows generated todate, projected to be generated during the remainingexpected holding period and the terminal valuedetermined based on projected operating performanceand projected capitalization rates in the applicablemarket. Projected net returns take into account fundexpenses, management fees and carried interest paidto date and projected to be paid within the fund. Dueto various risks, uncertainties and changes (includingchanges in economic, operational, political or othercircumstances) beyond the control of the Manager, theactual results of the referenced investments coulddiffer materially from the results expressed or impliedby the projected returns reflected herein in respect of

such investments. In addition, industry experts maydisagree with the estimations and assumptions usedin preparing the projected returns. IMPORTANT: Theprojections or other information provided hereinregarding the likelihood of various investmentoutcomes are hypothetical in nature and do not reflectactual investment results. No assurance,representation or warranty is made by any person thatany of the projected returns are accurate or will beachieved and you should not place undue reliance onthe projected returns. Additional information about theestimations and assumptions used in preparing theprojected returns and the factors that could causeactual results to differ materially from the projectedreturns are available upon request. In addition, pleasecontact the Manager to see projected performanceinformation based on different assumptions. Priorperformance is not indicative of future results andthere can be no guarantee that the Fund will achievecomparable results or be able to avoid losses.

4) Inclusive of Brookfield commitment.5) Returned percentage calculated based on amount

realized as percentage of total equity invested.6) Includes committed capital to investment committee

approved deals not yet closed as of Q3 2017. There isno guarantee that BSREP II will close on any suchinvestments.

7) Committed percentage includes fund reserves andcommitted capital to investment committee approveddeals not yet closed as of Q3 2017. There is noguarantee that BSREP II will close on any suchinvestments.

8) Equity invested represents the initial capitalinvestment, follow-on investments, capitalexpenditures and short -term subscription facilitydrawdown as applicable.

Page 61) Employee figures as of Q2 2017. Employee numbers

provided are dedicated Brookfield Property Groupemployees.

2) Covers operating professionals across all ofBrookfield’s business lines (e.g., private funds, listedentities, and public securities vehicles), includingrelated operating businesses and portfolio companies.

3) Includes assets managed by General GrowthProperties, a non-controlled affiliate. Brookfield owns a34% interest on a fully diluted basis, assuming alloutstanding warrants are exercised.

4) Excludes multifamily developments owned byBrookfield Office Properties and Canary Wharf Group.

Page 71) Years of real estate experience disclosed includes all

professionals listed on organizational chart2) Investment committee member.

Exhibit 5

28

Endnotes Page 9-151) The following case studies are illustrative of the

types of investments that may be entered into by theFund. These case studies reflect select investmentsmade by BSREP I and BSREP II. It should not beassumed that any investment made by the Fund willbe profitable or will equal the performance (or sharethe characteristics) of the investments listed herein.For performance information for each of theinvestments of BSREP I and BSREP II, and thefund-level Net IRRs and Net Investment Multiples foreach fund, please refer to the information previouslyprovided, available in the Fund’s data room. Priorperformance is not indicative of future results, andthere can be no guarantee that the Fund will achievecomparable results or be able to avoid losses. Forgreater certainty, it is not intended that the Fundinvest in any of the investments that are the subjectof these case studies. Note that the sameperformance information is not provided for all casestudies.

2) Percent of renovated apartments includesapartments that are part of the business renovationand rehab plan and does not include all units in theportfolio.

3) Average return on capital calculated by averagecombined premium over average unit of capexspend.

4) Represents developable area associated withWynyard Place development site. There is noguarantee that BSREP I will be able to successfullyexecute on such investment strategy.

5) There is no guarantee that the transaction will close.6) The sale will not close until 2020 when the project is

expected to be completed. There is no guaranteethat the project will be completed according to thistimeline. Benchmark average cap rate representsthe market low cap rate for the Sydney office marketas of September 2017.

7) Development square footage also includes fullycompleted buildings that are empty, thus have fulllease-up risk.

8) There is no guarantee that visitors per annum willremain consistent. Prior performance is notindicative of future results.

Page 161) The provided commentary is based upon

estimations and assumptions of the Manager, any ofwhich may prove to be incorrect. There is no

guarantee that the provided commentary will beachieved and undue reliance should not be put onthe outlook provided. Actual results could differmaterially from what is set forth herein.

Page 171) Based on committed capital. There can be no

assurance that diversification or asset allocations willbe met or that the Fund will be able to implement itsinvestment strategy or achieve its investmentobjectives.

Page 201) Inclusive of Brookfield’s commitment2) “Invested Capital” represents initial capital

investment, follow-on investments, capitalexpenditures and short-term subscription facilitydrawdown as applicable.

3) Prior performance is not indicative of future resultsand there can be no guarantee that the Fund willachieve comparable results.

4) Prior performance is not indicative of future resultsand there can be no guarantee that the Fund willachieve comparable results, have a similar portfolio,or be able to avoid losses. There can be noguarantee that the Fund will make or maintainconcentration and/or weighting proportionscomparable to those presented herein.

Page 211) Please refer to the track record included herein for a

full list of investments and performance. Amountsshown represent equity invested. Equity investedrepresents initial capital investment, follow-oninvestments, capital expenditures and short-termsubscription facility drawdowns, as applicable.

Page 221) Inclusive of Brookfield’s commitment.2) “Invested/Committed Capital” represents initial

capital investment, follow-on investments, capitalexpenditures and short-term subscription facilitydrawdown as applicable as well as committed capitalto investment committee approved deals not yetclosed as of Q3 2017. There is no guarantee ofclosing investments that have not yet been closedupon.

3) Includes committed capital to investment committeeapproved deals not yet closed as of Q3 2017. Thereis no guarantee that BSREP II will be able tosuccessfully execute on all or any of such futuredeals or projects, secure debt or receivedevelopment approvals. Prior performance is not

indicative of future results and there can be noguarantee that the Fund will achieve comparableresults, have a similar port folio, or be able to avoidlosses. There can be no guarantee that the Fund willmake or maintain concentration and/or weightingproportions comparable to those presented herein.

Page 231) Please refer to the track record included herein for a

full list of investments and performance. Amountsshown represent equity invested and committed.“Equity Invested” represents initial capitalinvestment, follow-on investments, capitalexpenditures and short-term subscription facilitydrawdowns, as applicable.

Exhibit 5

29

Notice To RecipientsThis document is being circulated to a limited number ofsophisticated institutional investors on a confidential basis. Thisdocument has been prepared to provide recipients with theopportunity to determine their preliminary interest regarding aninvestment in Brookfield Strategic Real Estate Partners III (the“Fund”) and may not be used or reproduced for any other purpose.Brookfield Asset Management Inc. (“BAM” together with itsaffiliates, “Brookfield”) is not making any offer, invitation orrecommendation of any kind by communication of this document tothe recipient and under no circumstances is it to be construed as aprospectus, product disclosure statement or an advertisement. Anysuch offer will be made only by means of the Fund’s offeringmaterials (collectively, the “Offering Materials”) and is subject to theterms and conditions contained therein. Without limiting thegenerality of the foregoing, this document does not constitute aninvitation or inducement of any sort to any person in any jurisdictionin which such an invitation or inducement is not permitted or whereBAM is not qualified to make such invitation or inducement. Inparticular, this document is not intended to constitute, and shouldnot be construed as, marketing of the Fund for any purposes of theAlternative Investment Fund Managers Directive. The informationset forth herein is presented for discussion purposes only and doesnot purport to be complete, and the document does not purport andis not required to contain all of the information required to beincluded in a prospectus or product disclosure statement. TheOffering Materials contain additional information about theinvestment objectives and terms and conditions of an investment inthe Fund, certain tax information and conflicts of interest and riskdisclosures that are important to any investment decision regardingthe Fund. This document is qualified in its entirety by the OfferingMaterials, which should be read completely before a prospectiveinvestor considers making an investment in the Fund. Thisdocument is intended to be communicated only to such persons asBAM is legally able to send it and who are legally able to receive itin their jurisdiction of residence. If you are not such a person,pleasereturn it to BAM immediately.This document is confidential and is intended solely for theinformation of the person to whom it has been delivered. It may notbe reproduced, made public or transmitted, in whole or in part, tothird parties except as agreed in writing by Brookfield. In addition, ifthe recipient is subject to section 552(a) of title 5 of the UnitedStates Code (commonly known as the “Freedom of InformationAct”) or any other public disclosure law, rule or regulation of anygovernmental or non-governmental entity, it is acknowledged thatthe information contained herein is confidential, proprietary and atrade secret. Certain information contained herein may constitutematerial non-public information in respect of BAM or any of itspublicly-traded affiliates and may not be used to trade in securitiesor other financial interests on the basis ofany such information.Brookfield Private Advisors LLC, a wholly owned subsidiary ofBAM, is a registered broker dealer with the SEC and a FINRAMember. Certain employees of Brookfield’s Private Funds Groupmay be registered with Brookfield Private Advisors LLC. BrookfieldPrivate Capital (UK) Limited, a wholly owned subsidiary of BAM, isauthorised and regulated by the United Kingdom’s FinancialConduct Authority (authorisation number 730073). None ofBrookfield, its associates, directors, members, shareholders,partners, officers, employees, advisers, agents or affiliates(together, its “Related Persons”) makes any express or impliedrepresentation, warranty or undertaking with respect to thisdocument. Accordingly, and to the maximum extent permitted bylaw, none of Brookfield or its Related Persons shall be liable(except in the case of fraud) for any loss (whether direct, indirect orconsequential) or damage suffered by any person as a result ofrelying on any statement in, or omission from, this document. Thisdocument has been prepared for institutional and qualifiedinvestors only. It has not been filed with FINRA and may not bereproduced, shown, quoted to, or used with members of the public.An investment in the Fund is speculative and involves significantrisks, including loss of the entire investment. There can be noguarantees that the Fund’s investment objective will be achieved orthat the investment will be successful. Interests in the Fund will beilliquid as there will be no secondary market for such interests andnone is expected to develop. There will be restrictions ontransferring interests in the Fund. The Fund’s investments may beleveraged and its investment performance may be volatile. An

investment in the Fund is suitable only for sophisticated investorsand requires the financial ability and willingness to accept the risksand lack of liquidity that are characteristic of an investment in theFund described herein. Any references to “committed capital”include all pledgedcommitments.Except where otherwise indicated herein, the information providedherein is based on matters as they exist as of the date ofpreparation and not as of any future date, is subject to change, andwill not be updated or otherwise revised to reflect information thatsubsequently becomes available or circumstances existing orchanges occurring after the date hereof.Certain information contained herein constitutes “forward-lookingstatements,” which can be identified by the use of forward-lookingterminology such as “may,” “will,” “should,” “expect,” “anticipate,”“target,” “project,” “estimate,” “intend,” “continue,” or “believe,” orthe negative thereof or other variations thereon or comparableterminology. Due to various risks and uncertainties, actual eventsor results or the actual performance of the Fund may differmaterially from those reflected or contemplated in such forward-looking statements. Although Brookfield believes that theanticipated future results, performance or achievements for theFund expressed or implied by the forward-looking statements andinformation are based upon reasonable assumptions andexpectations in light of the information presently available, thereader should not place undue reliance on forward-lookingstatements and information because they involve known andunknown risks, uncertainties and other factors which may causethe actual results, performance or achievements of the Fund todiffer materially from anticipated future results, performance orachievement expressed or implied by such forward-lookingstatements and information. Factors that could cause actual resultsto differ materially from those set forward in the forward-lookingstatements or information include but are not limited to: generaleconomic conditions, changes in interest and exchange rates,availability of equity and debt financing and risks particular tounderlying portfolio companyinvestments.Unless otherwise noted, any photographs appearing in thisdocument are of investments owned or previously owned by fundsor other investment vehicles managed by Brookfield. Any suchphotographs are intended for informational and historical purposesonly. No assurance is made that the Fund will invest in similarinvestments.In considering investment performance information containedherein, prospective investors should bear in mind that pastperformance is not necessarily indicative of future results and therecan be no assurance that comparable results will be achieved, thatan investment will be similar to the historic investments presentedherein (because of economic conditions, the availability ofinvestment opportunities or otherwise), that targeted returns,diversification or asset allocations will be met or that an investmentstrategy or investment objectives will be achieved. Any informationregarding prior investment activities and returns contained hereinhas not been calculated using generally accepted accountingprinciples and has not been audited or verified by an auditor or anyindependent party. Unless otherwise indicated, internal rates ofreturn (including targeted rates of return) are presented on a“gross” basis (i.e., they do not reflect management fees (orequivalent fees), carried interest (or incentive allocation), taxes,transaction costs and other expenses to be borne by investors,which in the aggregate are expected to be substantial and whichwould reduce the actual returns experienced by an investor).Unless otherwise indicated, returns presented on a “net” basisinclude costs and timing of any subscription facility, carried interest(or incentive allocation),management fees (or equivalent fees) andother fund expenses as applicable to the average investor, but donot reflect any potential tax burdens to an individual investor.Nothing contained herein should be deemed to be a prediction orprojection of future performance.This document includes Brookfield’s estimates of the projectedperformance of certain unrealized investments currently held byother Brookfield-managed funds, including any predecessor funds,and investment programs managed by Brookfield . Although thisinformation is forward-looking by its nature and actual results arelikely to differ, perhaps materially, from these estimates, Brookfieldbelieves that the estimates have a reasonable basis.

Any changes to assumptions could have a material impact onprojections and actual returns. Actual returns on unrealizedinvestments will depend on, among other factors, future operatingresults, the value of the assets and market conditions at the time ofdisposition, legal and contractual restrictions on transfer that maylimit liquidity, any related transaction costs and the timing andmanner of sale, all of which may differ from the assumptions andcircumstances on which the valuations used in the priorperformance data contained herein are based. Accordingly, theactual realized returns on unrealized investments may differmaterially from the returns indicated herein. Brookfield will providemore detailed information on the material factors or assumptionsthat were applied in making the projections and the material factorsthat could cause actual results to differ materially from theprojections to anyinvestor on request.Certain of the information contained herein is based on or derivedfrom information provided by independent third party sources.While Brookfield believes that such information is accurate as ofthe date it was produced and that the sources from which suchinformation has been obtained are reliable, Brookfield does notguarantee the accuracy or completeness of such information, andhas not independently verified such information or the assumptionson which such information is based. This document is subject tothe assumptions (if any) and notes contained herein.The information in this document does not take into account yourinvestment objectives, financial situation or particular needs andnothing contained herein should be construed as legal, business ortax advice. Each prospective investor should consult its ownattorney, business adviser and tax advisor as to legal, business,tax and related matters concerning the information containedherein.None of the information contained herein (or in any futurecommunication (written or oral) regarding an investment) isintended to be investment advice with respect to a proposedinvestment. Brookfield’s status as an ERISA fiduciary and theexistence and nature of Brookfield’s financial interest with respectto the proposed investment is set forth in the Fund’s governingdocuments. Additionally, the information provided herein is beingmade available only to “independent fiduciaries with financialexpertise” (within the meaning of the definition of the term“Fiduciary”; Conflict of Interest Rule – Retirement InvestmentAdvice, 81 Fed. Reg. 20,946 (Apr. 8, 2017)). Any person who doesnot meet such requirements may not invest in the Fund and shouldpromptlyreturn these materials to Brookfield.Neither this document nor the interests offered hereby have beenapproved by the United States Securities and ExchangeCommission, the United Kingdom’s Financial Conduct Authority,the Australian Securities and Investments Commission or by anyregulatory or supervisory authority of any state or other jurisdiction,including Canada, nor has any such authority or commissionpassed on the accuracy or adequacy of this document. Theinformation contained herein is subject to correction, completion,verification and amendment. Any representation to the contrary is acriminal offense.This document is not intended to be made available to any personin Australia who is not a wholesale client (within the meaning of theCorporations Act 2001 (Cth) of Australia) and is provided to you onthe basis that you are a person to whom an offer of interests in theFund would not require disclosure under Part 7.9 of theCorporations Act 2001 (Cth) of Australia because of subsection1012B(3)(b) (not a retail client). By receiving this document, yourepresent and warrant to Brookfield that you are not a retail client(within the meaning of the Corporations Act 2001 (Cth) ofAustralia). If you are a retail client, please do not consider thecontents of this document and please return it. Any offer orinvitation in Australia to invest in a fund, and any investment in afund by a person in Australia, is limited to such wholesale clients.This document is not a disclosure document or product disclosurestatement (within the meaning of the Corporations Act 2001 (Cth)of Australia).Unless otherwise noted, all references to “$” or “Dollars” are to U.S.Dollars. All representations are made as of September 30, 2017,unless otherwise expressly indicated, and no duty to update saidrepresentations is assumed.

Exhibit 5

Exhibit 6

To: Investment Committee From: Investment Staff Date: November 22, 2017 Subject: Courtland Partners Side Letter Consent

Summary As a reminder, Courtland Partners assumed responsibility for the entire Mesirow real estate fund-of-funds business in July 2015, when Mesirow exited the multi-manager real estate business. SURS investment with Mesirow was known as MFIRE II. Upon the transition to Courtland, the fund is now known as Real Estate Global Partnership Fund II.

On December 2, 2016, SURS was notified of the unexpected passing of Michael Humphrey, the founder and Managing Principal of Courtland Partners. At the time of the transfer from Mesirow to Courtland, the SURS side letter was renegotiated to include additional protections for SURS. Additional language was introduced stating that in the event John (“Jay”) Morgan and/or Mr. Humphrey were unable or unwilling to provide services to or on behalf of the Partnership, Courtland would promptly appoint a successor representative(s) to them, subject to SURS consent, which is not to be unreasonably withheld, conditioned or delayed. Prior to Mr. Humphrey’s death, Jay Morgan had been transitioning away from his duties at Courtland. As a result, Courtland chose Tony Fragapane and Marc Rivitz, who were the fund’s co-Portfolio Managers, as the successor representatives.

Staff was notified on November 9, 2017 that Tony Fragapane was leaving Courtland. Because of his departure, Courtland is now requesting the appointment of Mike Murphy as a representative in his place alongside Marc Rivitz. Staff is comfortable with Mr. Murphy’s appointment. Mr. Murphy is the head of Courtland’s fund-of-funds business and the second-longest tenured consultant at the firm.

It is important to distinguish this situation from a “key person” event. The investment period for the fund ended in 2015. As a result, no key person event has occurred. A consent document has been sent to SURS to reflect the appointment of Mr. Murphy and elicit SURS’ consent. A copy of the consent follows this memo.

Recommendation SURS staff and NEPC jointly recommend that based on the recommendation of staff and SURS investment consultant, that SURS execute the consent appointing Michael P. Murphy as successor representative to Anthony Fragapane.

Exhibit 7

November 10, 2017

State Universities Retirement System

Shane Willoughby, CFA, CAIA

Investment Officer

1901 Fox Drive

Champaign, IL 61820

Dear Mr. Willoughby,

Pursuant to paragraph 8.f. of the Amended Side Letter dated July 8, 2015 with respect to the investment

of State Universities Retirement System in the Real Estate Global Partnership Fund II, L.P. (f/k/a MFIRE

Global Partnership Fund II, L.P.), Courtland Partners, Ltd. proposes to appoint Michael P. Murphy as a

successor representative to Anthony Fragapane.

If you agree with this proposal, please sign and return this letter below with your consent of the

appointment of the new representatives.

Sincerely,

COURTLAND PARTNERS, LTD.

Steven C. Novick

Managing Principal

Agreed and Accepted:

STATE UNIVERSITIES RETIREMENT SYSTEM

By: _________________________________

Title: _________________________________

Date: _________________________________

Exhibit 8

To: Investment Committee From: SURS Staff Date: November 22, 2017 Subject: Hedge Fund Day Follow-Up

Background In June 2014, hedged strategies were included as part of the approved asset allocation. At the October 2015 Investment Committee meeting, SURS Staff and NEPC recommended, and the Board approved, PAAMCO and KKR Prisma as Fund of Hedge Fund Managers. In total, 40 firms responded to the Multi-Strategy RFP. Eight semi-finalists were interviewed at the SURS office by Staff and NEPC. Six of the eight semi-finalists were on NEPC’s Preferred List including both PAAMCO and Prisma. SURS staff held interviews with the four finalists that were brought to the Board at their respective home offices.

Hedge Fund Day On November 9, 2017, the Board hosted the two hedge fund providers for a presentation on the underlying managers in the program. Issues raised during the presentation, particularly with respect to the Newport Monarch Fund, included the risk levels of the portfolios, investment strategies being implemented, trends for assets under management, and the turnover of the underlying managers.

SURS Hedge Fund Mandate with PAAMCO SURS staff and consultant have found that returns, the investment process, staffing, and underlying manager turnover for PAAMCO’s Newport Monarch have all been within the expected parameters of the mandate. Within this memo, each topic is addressed in brief. Following the memo is an in-depth response from PAAMCO in regards to the previously mentioned topics.

The SURS hedge fund mandate established five primary investment targets and/or minimum levels for performance, volatility, target beta, percentage of assets managed by emerging managers, and percentage of assets managed by diversity managers. Newport Monarch was specifically customized to meet these investment targets and characteristics.

Exhibit 9

The chart below highlights the results of the Newport Monarch Fund since the portfolio was launched in April 2016:

Target/Requirement Newport Monarch, LLC

Annualized Net Returns ITD 6.0% (LIBOR + 5%) 6.1%

Annualized Volatility ITD < 7% 1.5%

Diversity Manager % 20% 32%

Emerging Manager % > 75% 83%

S&P 500 Beta < 0.30 0.16

Since inception, PAAMCO’s Newport Monarch portfolio has met or exceeded each requirement established by the SURS hedge fund mandate. Historically, PAAMCO’s portfolios have shown an ability to protect in down markets. In a similar strategy as SURS, PAAMCO returned -24.1% in 2008 versus the S&P 500 which declined -38.5% that year. From 2007-09 cumulative, PAAMCO returned 7.1% versus -21.4% for the S&P 500, exhibiting a positive upside/downside capture spread from 2005 through 2017. PAAMCO Assets Under Management On a combined basis, PAAMCO and Prisma manage and advise over $30 billion which is a significant number in the fund of funds industry. PAAMCO’s assets are 99.9% institutional with pension assets as the majority. Their average client tenure is 8.2 years. Please see below for the average discretionary PAAMCO AUM for each year since 2000 (firm inception). As of September 30, 2017, PAAMCO’s discretionary AUM is $9.5 billion.*

*As of September 30, 2017. AUM data for 2017 is estimated, unaudited, and subject to change. Chart above shows the average monthly AUM for each year.

Exhibit 9

PAAMCO Due Diligence Process PAAMCO has an in-depth due diligence process that is implemented through a set of checks and balances by senior professionals with experience in investment, operational, risk, and legal due diligence. The investment process is led by the firm’s Sector Specialists who are senior investment professionals at the firm who average 19 years of investment experience. Each Sector Specialist is focused on, and has significant experience in, one or two of the particular strategies in which PAAMCO’s clients invest. The Portfolio Management department is overseen by a highly experienced senior executive who, before PAAMCO, had been the co-Chief Investment Officer of a $10 billion multi-strategy hedge fund. The Sector Specialist and each person responsible for the Legal, Operations, and Risk Data have veto powers over the funding eligibility of the manager should it fail any stage of the due diligence process. Once each team member has completed his or her review, the manager is presented to the Investment Oversight Committee (“IOC”), which ultimately makes the final decision on whether to make a manager eligible. The IOC is the final authority for the entire investment process for the Fund of Hedge Funds division as it monitors the performance and risk of portfolios, votes on making managers eligible for investment, and governs the investment process. PAAMCO’s process is concentrated on smaller, newer managers who are highly experienced investors (typically senior individuals out of larger funds) who, given the smaller starting capital bases, have been able to, on average, outperform the industry. This approach has produced solid results and resulted in a portfolio that is highly diverse. The firm’s process of investing solely through separate accounts with strong independent governance and full position level transparency protects assets and is an integral part of their strategy. PAAMCO Staff As of December 31, 2016, PAAMCO employed 152 staff firm-wide, including 56 investment professionals. The table below highlights PAAMCO’s staffing by position.

Number of Total Staff

Number Involved with SURS’ Product

Sector Specialists/Portfolio Mgrs 8 8 Research Analysts 48 39 Total Investment Professionals 56 47 Other 96 96 Total Staff 152 143

PAAMCO has 26 senior investment professionals who have an average of 21 years of experience in the industry. PAAMCO is a diverse firm committed to investing in diverse managers. 66% of all PAAMCO employees and 56% of all PAAMCO employee partners are women or minority.

Exhibit 9

Turnover for Underlying Managers PAAMCO’s turnover has been consistent with expectations for the strategy and with data provided in the RFP for the period 2005 through 2014. The average length of PAAMCO investment with the 13 managers to whom full redemptions have been submitted through year end 2017 is 5.2 years. This is part of the natural evolution of an emerging manager strategy which transitions out of more established managers that have already been in the portfolio for some time and into new managers with a high degree of investment focus. All 13 managers were originally hired by PAAMCO before the inception of the Newport Monarch mandate. The length of time PAAMCO has been with each varied as outlined below:

• 5 managers for 5 years or more, of which 3 were for more than 10 years • 6 managers for 2-5 years • 2 managers for less than 2 years (1.8 and 1.7 years)

Under reasons for redemptions, the following breakdown was provided: 6 due to a strategy adjustment at the PAAMCO portfolio level, 3 to concentrate into higher performers, and 4 due to underperformance. The average number of managers in the portfolio has been 36, with an annual turnover rate of 21%. This is consistent with the experience of the overall strategy where the average annual turnover from 2005 to 2017 was approximately 23%. In addition, the number of managers turned over is also in line with the experience of the strategy, where 25 managers in total were terminated from 2012 to 2014, as indicated in the April 7, 2015 RFP response. Conclusion As stated previously, a more detailed response from PAAMCO follows this memo. Staff believes that PAAMCO’s risk/return and implementation style are consistent with the mandate described in the RFP process.

Exhibit 9

1

PAAMCO responses to SURS follow up questions, November 10, 2017 We appreciate the opportunity to address the questions you have provided in the context of the implementation of the SURS Hedged Strategies allocation. As you know, last year SURS selected and funded PAAMCO with $195 million after a highly competitive process that involved over 40 applicants with Board interviews with the finalists. PAAMCO was one of the two firms selected in this process. In June of this year, based on overall asset allocation work and its satisfaction with performance, SURS increased its allocation by an additional $240 million.

A separate fund called Newport Monarch was established for SURS with specific investment objectives and guidelines which closely follows the firm’s main strategy. PAAMCO’s longevity in institutional investing in hedge funds has led to its focus on finding superior performance (two of the firm’s founders began investing on behalf of large tax-exempt institutions in hedge funds in the late 1980s). PAAMCO’s search for superior performance has been concentrated on smaller, newer managers who are highly experienced investors (typically senior individuals out of larger funds) who given the smaller starting capital bases have been able to, on average, outperform the industry. Coincidentally, this approach while producing solid resultsA has also naturallyresulted in a portfolio that is highly diverse in many aspects. Finally, most importantly, since inception PAAMCO has met or exceeded all of the SURS stated investment goals while investing solely through managed accounts with strong independent governance and position-level transparency, thus protecting SURS assets.

Target/Requirement Newport Monarch, LLC

Annualized Net Returns ITD1,2 6.0% (LIBOR + 5%) 6.1%

Annualized Volatility ITD1 < 7% 1.5%

Diversity Manager %3 20% 32%

Emerging Manager %4 > 75% 83%

PAAMCO is a highly stable, global organization with over $23 billion in institutional assets under management or advisory, 17 years of experience investing in hedge funds and a senior investment team that has 150+ years of combined experience. Our 26 senior investment professionals have one of the longest average years of experience at 21 years in the industry. Moreover, over 99% of PAAMCO’s clients are large tax-exempt institutions with whom we have very long-term relationships.

PAAMCO is a diverse firm committed to investing in diverse managers. 66% of all PAAMCO employees and 56% of all PAAMCO employee partners are women or minority. Moreover, since inception, PAAMCO has exceeded the target for MFDB managers for each month with the allocation having now grown to be over 30%. Importantly, all of the MFDB managers are

A Notably PAAMCO is one of the few long-term fund of hedge funds who has avoided many of the large scale hedge fund industry issues notably Long-Term Capital, Madoff, Galleon, SAC, Amaranth Past performance may not be indicative of future results and any investment described in this document may lose value. See endnotes and disclaimers.

Exhibit 10

2

managers that PAAMCO puts in its portfolios regardless of the diversity focus – these are good managers who just happen to have diverse characteristics.

Please see below for responses to the questions sent to PAAMCO.

1. Please provide returns for a similar strategy going back at least ten years. Also carve out

performance during drops in the S&P 500 with additional focus on 2008. We have attached an Excel workbook with the monthly return streams included for the Diversified Emerging Manager Strategy (“DEMS”) which Newport Monarch follows. This is the same dataset that was provided in the Request for Proposal submitted on April 7, 2015 and updated through September 30, 2017. Returns since April 2016 are comprised solely of Newport Monarch’s data.

From January 2005 to September 2017, the Diversified Emerging Manager Strategy / Newport Monarch portfolio has returned 4.25% on an annualized basis and 69.93% on a cumulative basis. It has outperformed the HFRI FOF Index1,5 by 1.42% on an annualized basis and 27.24% on a cumulative basis.

Diversified Emerging Manager Strategy (Net)1 vs. HFRI FOF Composite Index5 January 2005 – September 2017

As of September, 2017. Consistent with the Request for Proposal submitted on April 7, 2015, the dataset begins in January 2005. Performance for 2017 is estimated, unaudited, and subject to change. Past performance may not be indicative of future results and any investment described in this document may lose value.

$170

$143

Exhibit 10

3

From January 2007 to December 2009, the Diversified Emerging Manager Strategy returned 7.1% on a cumulative basis while the HFRI FOF Composite index declined 3.4% and the S&P declined 21.4%.5

Diversified Emerging Manager Strategy (Net)1 vs. S&P 5005 2007 – 2009

Past performance may not be indicative of future results and any investment described in this document may lose value.

The Diversified Emerging Manager Strategy has maintained low exposure to equity markets while exhibiting a positive upside/downside spread. Diversified Emerging Manager Strategy (Net)1 vs. S&P 500 Index5 January 2005 – September 2017

As of September 30, 2017. Past performance may not be indicative of future results and any investment described in this document may lose value.

18.2%

-24.1%

19.4%

7.1% 10.3%

-21.4%

11.5%

-3.4%

3.5%

-38.5%

23.5%

-21.4%

-40%-30%-20%-10%

0%10%20%30%40%

2007 2008 2009 2007-2009

Ret

urns

Diversified Emerging Manager Strategy HFRI FOF Composite Index S&P 500 Index

2.8%

-3.3%

1.0%

-0.7%

-5%

-3%

-1%

1%

3%

5%

Months when theS&P 500 was Positive

Months when theS&P 500 was Negative

Ave

rage

Mon

thly

Ret

urn

(Net

) %

S&P 500 Index Diversified Emerging Manager Strategy

Cumulative

Upside Capture: 35%

Downside Capture: 22%

Exhibit 10

4

2. Please provide a chart of AUM since inception. Following the combination of PAAMCO with KKR Prisma, PAAMCO Prisma manages more than $30 billion in aggregate across discretionary and advisory assets, an amount which ranks third largest in the InvestHedge Billion Dollar Club rankings of multi-manager firms that have $1 billion or more in assets. PAAMCO Prisma Holdings, LLC is one of three firms listed with assets under management or advisement of more than $30 billion in these rankings. Please see below for the average discretionary PAAMCO AUM for each year since 2000 (firm inception).* As of September 30, 2017, PAAMCO’s discretionary AUM is $9.5 billion.* PAAMCO’s assets are 99.9% institutional with the pension assets as the majority with two out of the three largest US public plans as clients.

*As of September 30, 2017. AUM data for 2017 is estimated, unaudited, and subject to change. Chart above shows the average monthly AUM for each year.

3. For our terminated underlying managers, provide how long PAAMCO was invested with each firm wide.

Please see the table below for details regarding each manager for which full redemptions have been submitted from the Newport Monarch portfolio from the SURS mandate’s inception through the end of 2017.

Consistent with how the strategy has been run since 2005, the average length of our investment with the managers redeemed from Newport Monarch has been 5.2 years. This is part of the natural evolution of an emerging manager strategy which transitions out of more established managers that have already been in the portfolio for some time and into new managers with a high degree of investment focus. Importantly, we have been told by consultants that our turnover is in-line with many of the leading funds of funds who invest only in larger and older managers. We attribute this to the strong underwriting we do of the managers before investing.

To date there have been 13 managers to whom full redemptions have been submitted. All 13 managers were originally hired by PAAMCO before the inception of the Newport Monarch mandate. 5 of the managers had been with PAAMCO for more than 5 years, including 3 for more than 10 years. 6 managers were in PAAMCO portfolios between 2 and 5 years, and 2 for less than 2 years. The reasons for redemption are the following: 6 due to a strategy adjustment at the PAAMCO portfolio level, 3 to concentrate into higher performers, and 4 due to underperformance.

Over the course of the mandate, the average number of managers in the portfolio has been 36. The redemption of 13 managers therefore implies an annual turnover rate of approximately 21%. This is consistent with the experience of the Diversified Emerging Manager Strategy where

Exhibit 10

5

the average annual turnover from 2005 to 2017 has been approximately 23%. In addition, the number of managers turned over is also in line with the experience of the DEMS strategy, where 25 managers in total were terminated from 2012 to 2014, as indicated in the April 7, 2015 RFP response. Turnover statistics can be volatile in short periods of time; while Monarch launched in April of 2016, in its short history we believe that the manager changes are in line with longer term strategy trends.

*Based on Newport Monarch portfolio as of October 31, 2017. Annualized IRR is net of manager fees and gross of PAAMCO fees. See endnote 2. Past performance may not be indicative of future results and any investment described in this document may lose value. Classifying hedge fund investments by strategy is inherently complex due to factors such as overlapping strategies, strategy drift, and the lack of a standardized industry reporting format and definitions. Attempts are made to classify funds into the strategy that we believe best describes the current investment plan of each fund. As investment opportunities shift, PAAMCO may modify a fund’s classification prospectively or design a new classification to better reflect a fund’s investment strategy. 4. Please provide an in depth description of your due diligence process and describe the level of expertise of your analysts working on managers.

Overview PAAMCO has an in-depth due diligence process implemented by senior professionals with experience in investment, operational, risk, and legal due diligence. The sector specialist and each person responsible for the Legal and Regulatory, Operations, and Risk Data reviews have veto powers over the funding eligibility of the manager should it fail any stage of the due diligence process. Once each team member has completed their review, the manager is presented to the Investment Oversight Committee (“IOC”), which ultimately makes the final

2

Exhibit 10

6

decision on whether to make a manager eligible. The Portfolio Management department is overseen by a highly experienced senior executive who before PAAMCO had been the co-Chief Investment Officer of a $10 billion multi-strategy hedge fund.

Sector Specialist framework

Sector Specialists are senior investment professionals at the firm who have a combined 150+ years of “being in the business” of hedge funds. Each of our Sector Specialists generally is focused on, and has significant experience in, one or two of the particular strategies in which PAAMCO’s clients invest. Due to the depth of their experience, each Sector Specialist is at the nexus of a network of industry relationships (both formal and informal) that facilitates a very active flow of industry information into PAAMCO. PAAMCO leverages this experience and these networks to maintain access to hedge fund managers, and uses the regular information flow to work to discover new managers before others in the industry invest in them. PAAMCO’s Sector Specialists generally meet 500-800 hedge fund managers per year, and PAAMCO maintains a database of over 5,000 hedge fund managers. PAAMCO believes its Sector Specialists have a broad and deep knowledge of available managers and general conditions within their sectors. When evaluating prospective managers, Sector Specialists typically evaluate them both quantitatively (e.g., are they too closely correlated to an existing manager or do they have significant position overlap) and qualitatively (e.g., are they behaving as expected given their stated investment expertise), and decide whether to proceed to the due diligence phase.

Exhibit 10

7

The Sector Specialist is charged with identifying hedge fund managers in their respective sector, conducting due diligence, seeking to negotiate terms that capitalize on PAAMCO’s scale and preference as an institutional investor and then monitoring the managers on an ongoing basis. The Sector Specialist also leads the preliminary analysis of prospective managers, which may include reference checks, reviews of the investment process, risk management, organizational structure, business plan, and operations. It is common for the Sector Specialist to negotiate with underlying managers for portfolio transparency, capacity, fees and liquidity at this stage. At the conclusion of this stage, the Sector Specialist may identify a manager as a serious prospective manager formally initiating PAAMCO’s due diligence process. Due diligence process Decisions to invest with individual managers are supported by extensive research and due diligence. The Firm’s Portfolio Management group consists of approximately 40 investment professionals dedicated to manager research, selection and ongoing evaluation and who maintain extensive networks in their sector. Once a prospective manager has been identified as a candidate by a Sector Specialist, a due diligence team is constructed (customized to the particular manager and consisting of several PAAMCO investment professionals) to address the major areas of concern regarding the prospective manager: investment strategy and process, organizational/behavioral characteristics, operations, legal/regulatory, overall risk and the manager as a business. Each team (at a minimum) consists of the following personnel with specific responsibilities in parenthesis:

• Sector Specialist - (Investment Review) • Associate and Associate Director – (Business and Organization Review, Portfolio Review) • Legal Counsel – (Legal and Investment Structuring) • Member of our Operational Due Diligence team – (Back Office/Operational Review) • Member of our Risk Data Group – (Data Integrity Review) • Member of our Risk Analysis Group – (Risk Exposure and Behavioral Review)

The due diligence team works together to coordinate efforts. The due diligence team members responsible for the Legal, Operational Due Diligence, and Risk Data are each given veto power and all report directly to the IOC. We believe this is crucial to preserving the integrity of the process and highlighting individual accountability. The Head of Research may also assign an additional partner to provide an independent risk assessment which also includes veto power.

The below chart shows the due diligence and monitoring flow described above.

Exhibit 10

8

For illustrative purposes only.

Investment Due Diligence The investment due diligence is spearheaded by the Sector Specialist and includes contributions from associates, associate directors, and risk personnel. The review emphasizes the investment process, risk management, position-level review of the portfolio and a detailed look at the business and organizational structure. It includes, but is not limited to the following: • Evaluation of the manager’s “edge” and ability to effectively implement the investment opportunity identified by PAAMCO. The group looks at the research process and idea generation, portfolio construction, risk and exposure management as part of the overall portfolio management, performance attribution, business risk, key man risk, etc. • Analysis of portfolio attributions, which may include use of proprietary systems developed for manager monitoring using position-level data. PAAMCO investment professionals typically analyze and compare what the manager claims to be his or her strategy, methods and risk limits versus what is disclosed in the manager’s position-level portfolio. In the case of emerging managers, PAAMCO may use the manager’s “paper portfolio,” which includes the positions in which a manager would have been invested/would invest in upon launch. PAAMCO uses this information to identify potential gaps or disconnects between what is stated and what the actual portfolio displays and to overlay the manager’s portfolio with the Firm’s existing managers’ portfolios to determine the prospective manager’s contributions or diversification benefit to the overall client portfolios. • Background checks on key persons through First Advantage Backtrack Reports, LLC (New

Exhibit 10

9

York-based firm specializing in background and criminal checks). • Reference checks on key persons from the manager’s referrals and often through independent parties that may have worked with the fund manager in the past. • Review of the business plan including a current and projected look at the manager’s economics, ownership and compensation structure, which is formalized in the Business Review. Operational Due Diligence The manager must pass a detailed independent review by PAAMCO’s Operational Due Diligence (“ODD”) team. This team is comprised of a group of licensed Certified Public Accountants (“CPAs”) within PAAMCO’s Investment Operations Department. Using the information contained in the review questionnaire, operational questionnaires, legal documents and marketing materials and gathered through discussions with the respective Sector Specialist and the prospective manager, the ODD team will develop a plan against which the operational soundness of the manager’s back office procedures will be tested. Once the plan is developed, a member of the ODD team will visit the manager and perform these testing procedures (e.g., process reviews, pricing selections, asset confirmation, third party service provider confirmations, reconciliation review, etc.). Within the due diligence process, the ODD team has veto authority on all potential manager hires. Certain ODD personnel have previous audit experience with Big Four independent public accounting firms and have planned and performed both financial statement and internal control procedure audits for public and privately held companies. Additionally, members have post-public accounting experience in various roles including Chief Financial Officer, financial controls, accounting and operations. In addition, PAAMCO has implemented a regular monitoring program to assess the operations of its underlying managers. At a minimum, the ODD team revisits the active managers on an annual basis and performs other monitoring procedures based on an initial risk assessment schedule made at the time the manager was funded. In addition, each manager is required to complete an annual questionnaire sent out by the ODD team that covers:

• Organizational Changes • Third-Party Provider Changes • Additional Operational Hires • Back Office System Changes • Back Office Policies and Procedures Changes • Pricing Issues • Regulatory changes • Disciplinary matters

The response is reviewed with the goal of ensuring that there have been no changes that may potentially impact operational effectiveness. Each visit performed by the ODD team is documented. As noted above, the initial visit is documented in a control matrix as well as an ODD summary memo. Initial interactions and visits with managers, as well as annual follow-up visits are documented in PAAMCO’s customized manager and client relationship management (“CRM”) system. Counterparty Assessment PAAMCO structures investments with underlying hedge fund managers through separate accounts using both fund structures and managed account structures to more effectively secure transparency, customize investments, and provide added safeguards and oversight of hedge fund

Exhibit 10

10

assets. For investments structured through funds, our Operational Due Diligence (“ODD”) team has responsibility for the due diligence, approval and monitoring of counterparties. The ODD team performs testing to analyze and to monitor prime broker/custodian and other counterparty risk. This testing includes a review and discussion of the manager’s counterparty/prime broker approval process and a review of the prime broker agreement terms and how such items are monitored on an ongoing basis. The ODD team also reviews the manager’s prime brokers and counterparties by assessing the economic status of these firms and their creditworthiness. The prime brokers/custodians used by our managers are generally large, reputable institutions. The ODD team has created an internal system that tracks and aggregates counterparty exposures throughout the Firm on a quarterly basis. This is a dynamic system which can break down and aggregate the exposures by client fund, manager, and counterparty. Counterparty exposure is a key risk area for the PAAMCO ODD team that is closely monitored at the hedge fund manager. Prior to investing, the ODD team will attempt to verify the hedge fund’s assets directly with their prime brokers as an initial assessment of their prime broker exposure. In addition, the on-site visit typically includes an assessment of the hedge fund manager’s internal controls and risk management policies around counterparty exposure. For counterparty exposure through managed accounts, we have a formal Credit Committee that meets quarterly and approves and monitors prime broker, custodian and other counterparty relationships. The Credit Committee is comprised of employees in various areas of the Firm who are able to advise on best practices within the industry and make informed decisions when assessing counterparty exposures. Counterparties are added to our managed accounts based on manager needs. Counterparty exposure is monitored on a regular basis and new prime broker and ISDA counterparties must be approved by PAAMCO’s Credit Committee. The Credit Committee seeks to approve creditworthy counterparties that are appropriate for the funds and strategies. We seek to negotiate appropriate terms in the agreements and monitor regularly the creditworthiness of the approved counterparties, reporting information to the Credit Committee as needed. Key counterparties are evaluated based on predefined metrics and reported to the Credit Committee on a weekly basis. Additionally, exposure to each counterparty is calculated and reviewed regularly which includes an analysis on margin excess. Finally, meaningful counterparties are further monitored through regularly scheduled calls. The calls allow for a forum to discuss outstanding items and keep a pulse on changes within the coverage team and organization.

Exhibit 10

11

For illustrative purposes only. Risk Data Integrity Analysis The manager must pass an additional independent review by PAAMCO’s Risk Data Team on the basis of position-level data. Risk Data must verify that PAAMCO can adequately process the position-based data from the manager, that the data provided is complete, and that the manager is willing to provide what is required. Personnel in charge of Risk Data due diligence have veto authority on all potential manager hires. Legal and Investment Structuring PAAMCO’s internal legal counsels have veto authority when evaluating all prospective managers. PAAMCO’s internal legal counsels have experience working at law firms as part of their hedge fund practices. PAAMCO’s internal legal counsels focus on the structuring and negotiation of investments with underlying managers, the oversight and design of PAAMCO structured vehicles, and the ongoing monitoring and advice with respect to restructurings, compliance with applicable laws and regulations and other legal matters. Legal counsel has veto authority on all prospective manager hires. If applicable, the team will also review outside ownership of the manager, if any, in an effort to avoid conflicts of interest. Investment Oversight Committee Eligibility The last step of our process is to submit the manager to our IOC for final approval. If the manager passes the reviews from the ODD team, Risk Data, and Legal and Investment Structuring, and all

Exhibit 10

12

required due diligence is completed to our requirements, the Sector Specialist will submit the manager to the IOC for verification that the attestations and the manager meet PAAMCO standards. The IOC is comprised of individuals from Portfolio Management, Account Management, Risk Management, Compliance, and Investment Operations. Their review serves as an integrity check to ensure that the process is complete, meets PAAMCO standards, and that the terms agreed to are consistent with PAAMCO’s investment policies, restrictions and guidelines.

Upon completion of their review, the IOC votes to add the manager to the list of managers eligible for investment. The IOC then delegates to the Sector Specialist full responsibility for the decision to terminate the manager relationship and for overseeing the ongoing monitoring of the manager. The Legal, Operational Due Diligence, and Risk Processing (for example, if positons are no longer being received) groups also have the right to terminate a manager relationship during the course of an investment. Ongoing Assessment A Sector Specialist and an Associate lead the coverage of each PAAMCO investment from a holistic and a portfolio management perspective. Additionally, a member of PAAMCO’s Operational Due Diligence team covers each PAAMCO investment as well.

Exhibit 10

13

Sector Specialists are accountable for the ongoing assessment and management of the managers after initial investment. Sector Specialists work with Associates to monitor portfolio activities and trends utilizing the position level transparency. Along with the Associates, they conduct regular calls with the managers to get additional insight into the performance and the strategy. Sector Specialists maintain frequent communication with key team members to discuss top exposures, etc. Sector Specialists and Associates collaborate with the operations, risk management, and legal teams to conduct monitoring of investment guidelines, cash management and accounting, and fund compliance on the managers. Associates also play significant roles in the ongoing assessment of managers. Typically, Associates are assigned 4-7 managers across different of strategies in order to facilitate the recognition of portfolio wide trends and themes and across complexities to manage workload. Associates closely monitor these managers by analyzing position level data and conducting frequent calls and visits. They also complete comprehensive risk reports for each manager on a monthly basis. This analysis includes assessment of performance vs. benchmarks, risk at both the manager and overall portfolio level and a determination of whether investment behavior is in line with the original selection rationale. The reports are automatically sent to the relevant Sector Specialists and furthermore are available to all PAAMCO associates through an internal portal. Members of the Portfolio Management team are generally in contact with managers monthly and typically conduct on-site visits 2-4 times per year. Operational Due Diligence also conducts an annual compliance review and check-ups are conducted annually. The Sector Specialist and the Associate have the firm’s resources at their disposal to assist in the evaluation of the current investment. For example, the firm’s risk staff can assist in modelling and market analysis of the investment. Also, the firm’s legal staff can assist if any documents need to be updated. Additionally, the firm has specific Heads of Research that focus on certain geographies or asset classes that assist in the analysis of the investment as well. PAAMCO’s Investment Philosophy PAAMCO’s investment philosophy rests on delivering value add to our clients in each of the following dimensions:

a) Early Stage Opportunities: Focus on Emerging Managers (by age, size or Minority/Women ownership) Research has shown that emerging managers on average outperform their more established peers for the first four years of their life.*

b) Transparent Actionable Risk: 100% position level transparency is critical to our investment process; we utilize it to measure the exposures of individual managers, to assess prospective managers and to construct and evaluate our client portfolios.

c) Active Portfolio Construction PAAMCO works with their managers dynamically to customize exposures with an opportunistic lens to take advantage of identified dislocations effectively.

d) Safeguard and Control of Client Assets: All approved-eligible investments are in PAAMCO-structured vehicles2 including our Manage Account Platform (i.e. not in commingled funds).

e) Negotiated Underlying Fees

Exhibit 10

14

Another significant benefit of targeting emerging managers is PAAMCO’s ability to negotiate advantageous structural terms. PAAMCO aims to make a client’s all-in cost similar to or less than that of investing in managers directly.

Investment Team Backgrounds and Biographies PAAMCO’s Senior Portfolio Management Team averages 19 years of experience across 13 professionals. The average tenure at PAAMCO for this group is currently 9 years. The Investment Oversight Committee includes cross functional representation from 10 individuals with 150+ years of combined experience. The Firm is committed to developing its senior investment team by recruiting high caliber MBA graduates from top business schools. PAAMCO has an established professional development program to move these associates toward senior roles and eventual partnership in Portfolio Management, Risk Management, Investment Operations, or Account/Business Management. The Firm can also draw upon its numerous long-standing relationships in the hedge fund and investment industries for other senior hires. The investment team includes professionals with work experience at investment banks such as Goldman Sachs, JP Morgan, UBS, Merrill Lynch, and Morgan Stanley, as well as a number of hedge funds and other buy side firms. Please see below for tables summarizing the qualifications for PAAMCO’s senior portfolio management team, Investment Oversight Committee, and Newport Monarch coverage team. Detailed biographies are included after the below summary tables.

Senior Portfolio Management Team

Name PositionYears of

Investment Mayer Cherem, CFA, CQF Sector Specialist, Opportunistic Investments 14Robert Friend Sector Specialist, Distressed Debt 36Misha Graboi, JD, CFA, FRM Sector Specialist, Convertible Bond Hedging 17Alper Ince, CFA, CAIA Sector Specialist, Long/Short Equity & Event-Driven Equity 21Robert Motoshige Sector Specialist, Fixed Income Relative Value 24Putri Pascualy, CFA, CQF Sector Specialist, Long/Short Credit 13David Shin, CFA, CQF Sector Specialist, Long/Short Equity 11Scott Warner, CFA, FRM Sector Specialist, Equity Market Neutral & Long/Short Equity 16Anne-Gaelle Carlton, CFA, CQF Portfolio Construction Group 16Judith Posnikoff, PhD Portfolio Construction Group 23Andrew Ross, CFA, CQF, FRM, CAIA Portfolio Construction Group 12Jeff Willardson, CFA, CQF Portfolio Construction Group 16Basil Williams Portfolio Construction Group 35

Total 252Average 19

Exhibit 10

15

Biographies

Jane Buchan, PhD, CAIA is a Managing Director and the firm’s Chief Executive Officer. As CEO, Jane is responsible for overall business strategy and firm direction. She is a member of the firm’s Investment Oversight Committee. Jane began her career at J.P. Morgan Investment Management in the Capital Markets Group. She has also been an Assistant Professor of Finance at the Amos Tuck School of Business at Dartmouth. Prior to forming PAAMCO, she held various positions ranging from Director of Quantitative Analysis to CIO of non-directional strategies at Collins Associates, an institutional fund of funds and consulting firm. She is currently serving as chairwoman of the board for the Chartered Alternative Investment Analyst Association (CAIA). Jane is also a member of the Advisory Board for the Master of Financial Engineering Program at UCLA Anderson School of Management. Jane holds both a PhD and an MA in Business Economics (Finance) from Harvard University. She earned a BA in Economics from Yale University. Jane has thirty-two years of experience in investment management and portfolio construction with institutional investors.

Anne-Gaelle Carlton, CFA, CQF is a Managing Director and Partner at PAAMCO. As a member of the firm’s Portfolio Construction Group, Anne-Gaelle leads asset allocation for PAAMCO’s flagship Moderate Multi-Strategy portfolios. She also manages several hedge fund solutions for large institutions, with a focus on opportunistic investing using emerging managers. Anne-Gaelle also serves as Head of Client Service globally; as such she is responsible for executing on the delivery of the firm’s value proposition. Previously she managed PAAMCO’s Event-Driven Equity Sector and spent her early career at PAAMCO conducting due diligence on a broad spectrum of hedge fund strategies. Prior to joining PAAMCO in 2007, Anne-Gaelle was an M&A banker at UBS Investment Bank, focused on the transportation and insurance sectors. Anne-Gaelle received her MBA from Harvard Business School, her MS (Distinction) from the London School of Economics, and her BS (First) in Pure Mathematics from Imperial College London.

Mayer Cherem, CFA, CQF is a Managing Director and the Sector Specialist responsible for the evaluation and management of opportunistic investments and offensive risk management initiatives. Mayer focuses on identifying new, uncorrelated sources of alpha through fundamental analysis and their optimal integration into client portfolios. His investment experience includes volatility, fixed income, credit derivatives, structured products and commodities strategies. He chairs the firm’s Strategy Allocation Committee where he focuses on assessing the impact of asset allocation on overall portfolio risk and performance. Mayer is involved in the ongoing development of the firm’s risk criteria and quantitative aspects of portfolio construction. Mayer is also a member of the firm’s Investment Oversight Committee. Besides his investment responsibilities, Mayer sets the vision for PAAMCO’s Associate Program, hiring and developing MBA candidates from top business schools through PAAMCO’s partnership track. Mayer earned his MBA from Columbia Business School after graduating from the Universidad Simon Bolivar of Venezuela with a BS in Production Engineering.

Investment Oversight Committee

Name Position

Years of Investment Experience

Jane Buchan, PhD, CAIA Chief Executive Officer 32Mayer Cherem, CFA, CQF Sector Specialist, Opportunistic Investments 14Carlos Ferreira, CPA, CFA, FRM Head of Investment Operations 16Lisa Fridman, CFA, CQF Head of Global Research 14Philippe Jorion, PhD Head of Risk Management 35Polly Koop, CPA Deputy Chief Compliance Officer 18Judith Posnikoff, PhD Portfolio Construction Group 23Scott Warner, CFA, FRM Sector Specialist, Equity Market Neutral & Long/Short Equity 16Basil Williams Portfolio Construction Group 35Kevin Williams, CFA Head of Account Management 17

Total 219Average 22

Newport Monarch Coverage Team

Name Position

Years of Investment Experience

Mayer Cherem, CFA, CQF Sector Specialist, Opportunistic Investments 14Andrew Ross, CFA, CQF, FRM, CAIA Portfolio Construction Group 12Von Hughes, JD, MPP, CAIA Head of Strategic Advisory 21

Total 46Average 15

Exhibit 10

16

Carlos Ferreira, CPA, CFA, FRM is a Managing Director and Head of Investment Operations at PAAMCO. He provides firm-wide leadership to the Accounting and Operational Due Diligence, Operations and Treasury, Legal and Investment Structuring, and Compliance groups. Carlos is also a member of the firm’s Investment Oversight Committee. Before joining PAAMCO, he was Head of Operational Due Diligence for LGT Capital Partners, based in Switzerland, from 2007 to 2010. Prior to this, Carlos was CFO/COO and Head of Operational Due Diligence for KBC Alpha Asset Management in London from 2005, where he was responsible for the non-investment activities of the business, including fund accounting and operational due diligence on underlying fund investments. Previously, he worked for Morgan Stanley’s Private Wealth Management (Europe) division, in their Client Strategy and Hedge Fund groups, and for Arthur Andersen (now Deloitte) as an international corporate tax practitioner. Carlos began his career with KPMG as an auditor. Carlos holds an MBA from the London Business School as well as a Bachelor of Commerce degree from the University of Toronto.

Lisa Fridman, CFA, CQF is a Managing Director working in Portfolio and Account Management. She is Global Head of Research and manages the London office. She is involved in the research, due diligence and monitoring of the firm’s underlying hedge fund investments with a particular focus on the emerging hedge fund managers in the various PAAMCO client portfolios. Lisa is also a member of the firm’s Investment Oversight Committee. In addition, she has institutional account management responsibilities and is a frequent presenter at industry conferences. Lisa serves on the London Board of 100 Women in Finance and is a member of the AIMA's Investor Steering Committee. She was named to the Financial News 100 Influential Women list in 2016, 2015, and 2014; included in the 50 Leading Women in Hedge Funds 2013 list, published by the Hedge Fund Journal and Ernst & Young LLP; and recognized among the 40 Under 40 Rising Stars in Hedge Funds by the Financial News in 2012. Lisa received an MBA from the University of California Los Angeles Anderson School of Management, and a BA in Business Economics (summa cum laude) from University of California, Los Angeles.

Robert Friend is a Managing Director and Sector Specialist for the Distressed Debt strategy at PAAMCO. Bob is responsible for manager selection and portfolio construction within the strategy. Prior to PAAMCO, Bob worked at Bayview Asset Management, a Blackstone affiliate, with responsibility for a portfolio of stressed residential mortgages. Prior to Bayview, he was Vice President at Plainfield Asset Management where he was responsible for $800 million in distressed and special situation credit. Bob has held CIO positions at Recon Capital and UBK Asset Management, which specialize in high yield, distressed and capital structure arbitrage within the Merton Model Framework. Bob has worked with PAAMCO's founders at a predecessor fund of funds where he was responsible for manager due diligence. His early career was spent on Wall Street as a proprietary derivatives trader with Goldman Sachs, Merrill and NatWest. Bob has more than 35 years of investment and capital markets experience including 15 years managing credit portfolios. Bob holds an MBA from the University of California, Los Angeles and a BA with honors from the University of Virginia.

Misha Graboi, JD, CFA, FRM is a Partner and Managing Director at PAAMCO. He is also the Chief Executive Officer of PAAMCO Asia and PAAMCO’s global Sector Specialist for convertible bond hedging. Misha has been based in Singapore since 2009, when he moved there to strengthen PAAMCO’s Asia team. Prior to PAAMCO, he was a founder and Director of Rigel Associates, a firm providing private financing and M&A advisory services to middle-market companies, primarily in technology. Before joining Rigel, Misha was an Executive Director at Goldman Sachs International in their Equity Research division. He began his career in finance at CIBC Oppenheimer, first as an investment banking analyst and then as an equity research associate. Misha holds an MBA from Harvard Business School, where he was a Baker scholar, and a Juris Doctor (magna cum laude) from Harvard Law School. He holds a Bachelor of Science in Finance and International Business (magna cum laude) from Georgetown University.

Von Hughes, JD, MPP, CAIA is a Managing Director and Partner at PAAMCO in the Account Management Group, and in that role manages the firm’s global Strategic Advisory effort, helping institutional investors confront the broad ranging challenges to hedge fund program construction and implementation. Von specializes in public pension plan governance, advising public pension trustees, investment committees and investment staffs on internal governance structures and effective internal resource management. As a member of the Account Oversight Committee, he has responsibility for certain large institutional investor relationships. Von is a trustee of the Greenwich Roundtable, a non-profit research and educational organization for investors allocating to alternative investments. Von is also a Trustee of Northside Center for Child Development, a Harlem-based non-profit organization that provides early childhood development services in the NYC area. Von began his career at Goldman, Sachs & Co. in New York as an Associate in the Mergers & Acquisitions Group and then as a Vice President in the Equity Capital Markets Group. Von received his JD from Harvard Law School, where he was selected as an editor of the Harvard Law Review. He received his MPP from the John F. Kennedy School of Government at Harvard University, and he holds a BA in Philosophy (cum laude) from Yale University.

Alper Ince, CFA, CAIA is a Managing Director and the Sector Specialist responsible for the management of long/short and event-driven equity hedge fund managers in the various PAAMCO portfolios. In addition, Alper is responsible for managing relationships with certain institutional investors. Prior to joining PAAMCO, Alper was an Associate Director at BARRA RogersCasey, a major pension-consulting firm, where he led the firm’s hedge fund investment and manager research efforts. Alper received his MBA in Finance from the University of Hartford, and earned a BS in Economics from METU Ankara (Turkey). Alper has twenty-one years of investment management and consulting experience with institutional investors.

Exhibit 10

17

Philippe Jorion, PhD is a Managing Director in the Risk Management Group. He oversees the development and implementation of risk measures for PAAMCO hedge funds, sectors, and client portfolios, all of which are based on full position-level transparency. He is charged with the active management of risk, which involves building tools for monitoring managers, customizing funds, and helping to manage overall portfolios. As chair of the firm’s Investment Oversight Committee, he is involved in all stages of the investment process. He also serves as a chaired Professor of Finance at the Paul Merage School of Business at the University of California at Irvine. He is a frequent speaker at academic and professional conferences and is on the editorial boards of a number of finance journals. Philippe has authored more than 100 publications on the topic of risk management and international finance. Some of his most notable work includes the Financial Risk Manager Handbook (Wiley 6th ed. 2010), which provides the core body of quantitative methods and tools for financial risk managers; Big Bets Gone Bad: Derivatives and Bankruptcy in Orange County (Academic Press 1995), the first account of the largest municipal failure in US history; and Value at Risk: The New Benchmark for Managing Financial Risk (McGraw-Hill 3rd ed. 2006), the first definitive book on VAR. In March 2013, the Financial Analysts Journal honored Philippe Jorion and Rajesh K. Aggarwal’s article titled “Is There a Cost to Transparency?” with the 2012 Graham and Dodd Scroll Award. From 2012 to 2014, Philippe served on the Federal Reserve’s Model Validation Council, an advisory council of economists that evaluates the models used in bank stress tests. Philippe holds an MBA and a PhD from the University of Chicago and a degree in engineering from the University of Brussels. Philippe has over thirty years of experience in investments and risk management.

Polly Koop, CPA is the Deputy Chief Compliance Officer and a Senior Vice President in Investment Operations. She supports the Chief Compliance Officer in the design, management and coordination of the firm’s global compliance program. In her role, Polly ensures that existing policies and procedures remain current and that new processes are developed, as needed. She also oversees periodic internal compliance reviews, employee training, and regulatory reporting. Polly is also a member of the firm’s Investment Oversight Committee. Prior to joining PAAMCO, as a Senior Audit Manager in Deloitte’s Asset Management practice, Polly advised and audited investment management clients on financial statement audits, SAS 70/SOC 1 examinations, and other regulatory filings. Her eighteen years of experience includes engagements with fund of funds, hedge funds, and mutual funds, including master-feeder structures and Cayman Island-registered products. Polly graduated from the University of Southern California with a BS in Accounting.

Robert Motoshige is Director and Sector Specialist for the Fixed Income Relative Value strategy at PAAMCO. He is responsible for manager selection and portfolio construction within fixed income relative value, macro, and mortgage strategies. In addition, he also serves as the main point of contact for certain institutional investor relationships in Asia. Prior to joining PAAMCO, Robert ran his own consulting firm, helping investment banks and hedge funds with research and due diligence. Prior to that, Robert traded Japanese Government Bonds at Morgan Stanley, and covered hedge funds as Head of Asian Hedge Fund Sales at Dresdner Bank. Robert received his MBA from the University of California, Irvine and his BA in Economics from Stanford University.

Putri Pascualy, CFA, CQF is a Managing Director and Sector Specialist for long/short credit. She leads the evaluation and management of long/short credit hedge funds for the PAAMCO portfolios and is responsible for portfolio construction, structuring and risk management for large customized mandates. Putri is a voting member of the firm’s Credit Committee and served on the firm’s Risk Management Committee. Prior to joining PAAMCO, Putri was an economist with Cornerstone Research, where she built economic models to simulate market impact and damages in high-profile securities class action and intellectual property related lawsuits. Putri is a frequent contributor to leading financial media outlets including The Wall Street Journal, Bloomberg News, Bloomberg TV and Radio, US News and World Report, Reuters, Barron’s and CNBC. In addition, Putri serves on the Board of Directors of Girl Scouts, Keen USA, and WISE Investors. In 2015, Putri was named by Institutional Investor in their list of 2015 Hedge Fund Rising Stars. Putri is the author of “Investing in Credit Hedge Funds” (McGraw-Hill 2014), a practical guide on various aspects of alternative investing in corporate credit. Putri received her MBA from the University of California, Berkeley where she received a full merit scholarship under the Haas Achievement Award. Putri received her BA from the University of California, Berkeley with a degree in Economics (High Distinction) and a Business Administration minor.

Judith Posnikoff, PhD is a Managing Director and one of the founding partners of PAAMCO. From PAAMCO’s inception in 2000, Judy has been involved in all aspects of the firm’s investment process, including serving as Sector Specialist for Equity Market Neutral and Merger Arbitrage as well as Chair of the Investment Oversight Committee. She is currently focused on portfolio construction as a member of the firm’s Portfolio Construction Group, setting strategy and asset allocation for the firm’s flagship moderate multi-strategy portfolios, and is also a member of the firm’s Investment Oversight Committee. Judy has authored numerous publications in the area of alternative investments and has taught at the University of California, Riverside and Irvine and at California State University, Fullerton. Judy was a member of the founding board of directors of the Association of Women in Alternative Investing (AWAI) and is on the global board of 100 Women in Finance and the CAIA Foundation. She also chairs the scholarship committee of the 100 Women in Finance Institute. Judy earned a PhD in Financial Economics and an MBA and MA from the University of California, Riverside. She also holds a BS in Administrative Studies from UC Riverside. Judy has twenty-three years of experience in investment management and portfolio construction with institutional investors.

Exhibit 10

18

Andrew Ross, CFA, CQF, FRM, CAIA is an Associate Director working in Portfolio Management, focusing on portfolio construction. He is actively involved in the strategy and asset allocation for the firm’s flagship Moderate Multi-Strategy portfolios and serves as a portfolio manager on multiple custom account mandates covering fixed income, concentrated, emerging manager and insurance related mandates. Andrew began his career at PAAMCO focusing on investments within corporate and consumer credit with an emphasis on structured opportunities as well as fixed income strategies. He later served as chairperson of the Portfolio Solutions Group where he assisted in the portfolio construction of the company’s custom account mandates. Prior to attending business school, Andrew worked at IndyMac Bank, which was later merged into OneWest Bank, where his experience included balance sheet credit risk analysis, bulk trading, and whole loan portfolio pricing. Andrew graduated from Dartmouth College with a BA in Economics and received his MBA with honors from The University of Chicago Booth School of Business with concentrations in Analytic Finance, Economics, Strategic Management, and General Management.

David Shin, CFA, CQF is a Director working in Portfolio Management. In his position as a Sector Specialist for Asian Long/Short Equity hedge fund managers, he is responsible for manager evaluation and selection. David also regularly supports global client teams and is the main contact point for certain Asian institutional investor relationships. Prior to joining PAAMCO, David was a senior analyst at Audax Group, a U.S. mid-market focused private equity fund with over $10bn under management. He began his finance career at Merrill Lynch Private Equity Partners and prior to entering the finance industry he spent two years working for Inductis, a boutique strategy consulting firm based in New York. David holds a Bachelor of Science from Columbia University and an MBA from UCLA Anderson School of Management.

Scott Warner, CFA, FRM is a Managing Director and Sector Specialist for both the North American long/short equity and equity market neutral strategies. He focuses on the evaluation and management of managers in those sectors. He also serves as the Portfolio Manager and main point of contact for certain institutional investor relationships and is responsible for portfolio construction of equity-focused customized solutions. Scott is also a member of the firm’s Investment Oversight Committee. Scott joined PAAMCO as part of the Portfolio Management group in 2006. Prior to PAAMCO, he worked in the Investment Management Division at Goldman, Sachs & Co. (Los Angeles). Scott received his MBA in Finance from the University of California, Los Angeles Anderson School of Management, and also holds a BA in Business-Economics (cum laude) from UCLA.

Jeff Willardson, CFA, CQF is a Managing Director and Partner at PAAMCO. He is currently Head of Portfolio Solutions, which constructs custom alternative solutions for PAAMCO’s clients and prospective clients. Jeff is also a voting member of the five-person Portfolio Construction Group and sets top-down portfolio strategy and allocation across PAAMCO’s diversified Moderate Multi-Strategy solution. Additionally, Jeff serves as Chair of the Account Oversight Committee and is responsible for coordinating and executing on various strategic firm issues. Throughout his career at PAAMCO, Jeff has conducted research, due diligence and risk monitoring for managers across all PAAMCO strategies with an emphasis on credit strategies, emerging markets, and real estate. Prior to joining PAAMCO in 2007, Jeff spent five years at Goldman, Sachs & Co. in the Investment Management Division. Jeff received his MBA (Dual Finance and Real Estate Major) from The Wharton School, University of Pennsylvania, and he holds a BS in Management (Finance Major) from Brigham Young University.

Basil Williams is a Managing Director and Head of Portfolio Management at PAAMCO. He is responsible for the firm's completeAlpha approach to hedge fund investing and is the Chief Investment Officer of Horizons, the firm's fixed-income investment solution. Basil is also a member of the firm's Investment Oversight and Management Committees. During his career, he has built and led teams in institutional investment management including equity and fixed income trading, research, risk management, and business development. Most recently, Basil was the Co-Chief Investment Officer at Mariner Investment Group, where he managed internal trading teams, led three of Mariner’s multi-strategy mandates, spearheaded the firm’s incubation and seeding business, co-authored Mariner’s Quarterly Investment Views publication and helped set the firm’s business strategy. Prior to Mariner, he spent nineteen years with Concordia Advisors and held the role of CEO for the last six of those years. Basil started his career at Merrill Lynch in 1980 and played a key role in the development of its financial futures and options business. Basil received his MBA from New York University and his BA in Applied Math from Brown University.

Kevin Williams, CFA is a Managing Director and Head of Account Management at PAAMCO, providing firm-wide leadership to marketing, client service, and custom solutions. He is a member of the firm’s Management Committee and is responsible for strategic initiatives and several client relationships. Since joining PAAMCO in 2001, Kevin has managed client portfolios and conducted global research on hedge funds, created the firm’s managed account platform, served as the Global Head of Investment Operations and Chief Compliance Officer, and launched several new offices and business lines. He has also served on the firm’s Strategy Allocation Committee and is currently a member of the Account Oversight and Investment Oversight Committees. Prior to joining PAAMCO, Kevin began his career as an auditor at McGladrey & Pullen (now RSM) with a focus on middle-market banking and financial services. Kevin received his MBA from the Marshall School of Business at the University of Southern California, BA in Economics from the University of California, Los Angeles, and has also earned the Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA) designations.

Exhibit 10

19

Endnotes

1. Performance for 2017 is estimated, unaudited, and subject to change. Performance is net of PAAMCO fees, including management and performance fees, fund expenses, and underlying hedge fund manager fees and expenses. Performance generally reflects reinvestment of dividends and income in the underlying hedge funds. Performance greater than one year is annualized. Variations in percentages may be due to rounding error and manager delays in reporting. All market values are based on aggregation of prices and market values provided to PAAMCO by prime brokers, administrators, or managers (“Service Providers”) and compiled as of a given month-end date. Accuracy of the data in this report is dependent on the accuracy of the information provided by the Service Providers.

2. Gross performance is net of underlying hedge fund manager fees, transaction costs and expenses, but gross of fund expenses and PAAMCO management and performance fees. Performance generally reflects reinvestment of dividends and income in the underlying hedge funds. If the expenses were reflected, the performance shown would be lower. Actual fees are available upon request and will vary depending on, among other things, the applicable fee schedule and account size. For example, if $100 million were invested and experienced a 10.0% annual return compounded monthly for 10 years, its ending value, without giving effect to the deduction of advisory fees, would be $259 million with annualized compounded return of 10.0%. If an annual advisory fee of 1.0% of the average market value of the account were deducted monthly for the 10-year period, the annualized compounded return would be 8.9% and the ending dollar value would be $235 million. Additional information regarding PAAMCO’s fees is available in PAAMCO’s Brochure (Part 2 of SEC Form ADV).

3. Diversity-owned includes manager diversity ownership equal to or greater than 51% by any combination of minority persons, females, or persons with disabilities. This analysis includes the following minority types: Hispanic, Asian Indian, African American, and Pacific Asian. AUM of Diversity-Owned Managers includes those managers which meet these criteria.

4. The Newport Monarch mandate defines an “emerging” manager as any investment fund that does not exceed $750 million in AUM or has been in existence for less than 2 years, or any investment manager whose AUM does not exceed $2 billion or has a significant minority or women ownership. These thresholds stand only at the initial investment date.

5. Comparisons to indices have limitations because indices have volatility and other material characteristics that may differ from a particular fund. Broad-based indices are unmanaged and are not subject to fees and expenses typically associated with a fund or managed account. One cannot invest directly in an index. A hedge fund’s performance may differ substantially from the performance of an index. Because of these differences, the indices shown are not benchmarks, should not be relied upon as an accurate measure of comparison, and are shown only to present a comparison among asset classes. Unless noted otherwise, all index returns are denominated in U.S. dollars. HEDGE FUND RESEARCH INC. (HFRI) FUND OF FUNDS (FOF) COMPOSITE INDEX: Fund of Funds invest with multiple managers through funds or managed accounts. The strategy designs a diversified portfolio of managers with the objective of significantly lowering the risk (volatility) of investing with an individual manager. The Fund of Funds manager has discretion in choosing which strategies to invest in for the portfolio. A manager may allocate funds to numerous managers within a single strategy, or with numerous managers in multiple strategies. The minimum investment in a Fund of Funds may be lower than an investment in an individual hedge fund or managed account. The investor has the advantage of diversification among managers and styles with significantly less capital than investing with separate managers. THE STANDARD & POOR’S 500 TOTAL RETURN INDEX (SPTR): The total return version of the Standard & Poor’s 500 Stock Index (a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely-held common stocks). Dividends are reinvested on a daily basis. BARCLAYS 10-YEAR TREASURY INDEX (BELLWETHER) is a U.S. Treasury bond index which assumes the reinvestment of all distributions from the underlying securities. 3 MONTH LIBOR (MONTHLY): Based on Bloomberg U.S. Cash Indices LIBOR Total Return 3 Month (USC0TR03). LIBOR: London Interbank Offered Rate—British Bankers Association.

Exhibit 10

20

Disclaimer:

Pacific Alternative Asset Management Company, LLC ("PAAMCO U.S.") is the investment adviser to all client accounts and all performance of client accounts is that of PAAMCO U.S. Pacific Alternative Asset Management Company Asia Pte. Ltd. (“PAAMCO Asia”), Pacific Alternative Asset Management Company Europe LLP (“PAAMCO Europe”), PAAMCO Miren Portföy Yönetimi A.Ş. (“PAAMCO Turkey”), Pacific Alternative Asset Management Company Mexico, S.C. (“PAAMCO Mexico”), and PAAMCO Colombia S.A.S. (“PAAMCO Colombia”) are subsidiaries of PAAMCO U.S. “PAAMCO” refers to PAAMCO U.S., PAAMCO Asia, PAAMCO Europe, PAAMCO Turkey, PAAMCO Mexico, and PAAMCO Colombia, collectively. Assets Under Management (“AUM”) for 2017 is estimated, unaudited, and subject to change.

Use of Information. The recipient agrees to use any information that the recipient receives from PAAMCO or a representative of PAAMCO (whether received orally or in writing) only for the purpose of evaluating whether to enter into a relationship, or continue a relationship, with PAAMCO whereby PAAMCO provides investment advisory services to recipient.

The information contained in this document is intended for discussion purposes only. The information included herein is highly confidential, intended for review by the recipient only, and should not be disseminated or be made available for public use or to any other source. It is not an offer or a solicitation for the sale of a security nor shall there be any sale of a security in any jurisdiction where such offer, solicitation or sale would be unlawful. An investment with PAAMCO (whether through a commingled fund or on a separate account basis) involves a degree of risk, and may only be made pursuant to the respective offering documents and organizational materials governing such investment. Past performance of the clients of PAAMCO, or any of its employees or principals, may not be indicative of future results, and there is no guarantee that performance goals will be achieved. The entirety of investors’ capital is at risk.

PAAMCO does not make any warranty as to the accuracy, reliability or completeness of figures, opinions, information or generally as to the content of this document and cannot be held responsible for any loss or damage, whether direct or indirect, resulting from or related to the use or consultation of this document or of the information herein. Any information provided herein obtained by PAAMCO from third parties has not been reviewed for accuracy. PAAMCO’s processes are constantly evolving and there can be no assurance that any process described in this document will continue to be employed in the future in the manner described.

All information contained herein regarding any PAAMCO fund (the “Fund”) is subject in its entirety to information contained in its final offering memorandum and organizational documents (collectively, “Offering Materials”). An investor should consider a Fund‘s investment objectives, risks, charges and expenses carefully before investing. This and other important information about a Fund can be found in its Offering Materials. Please read the Offering Materials carefully before investing.

While PAAMCO is responsible for strategy allocation of client portfolios, the managers that PAAMCO hires determine the prices and quantities traded for all underlying securities.

Material is Current Only as of Date Indicated. The information in this material is only current as of the date indicated, and may be superseded by subsequent market events or for other reasons. The information in this document may contain projections or other forward-looking statements regarding future events, targets or expectations regarding a Fund. There is no guarantee that the target allocations or other characteristics of a Fund will be realized or achieved, and they may be significantly different than that shown here. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Any forward-looking statements are reflected as of the date they are made, and PAAMCO assumes no duty and does not undertake to update forward-looking statements.

Regulatory Status. The applicable Fund is not registered under the U.S. Investment Company Act of 1940, as amended, in reliance on an exception thereunder. Interests in the applicable Fund have not been registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state and are being offered and sold in reliance on exemptions from the registration requirements of said Act and such laws. These securities shall not be offered or sold in any jurisdiction in which such offer, solicitation or sale would be unlawful until the requirements of the laws of such jurisdiction have been satisfied.

Hedge Funds Entail Risks. Hedge funds are speculative investments and are not suitable for all investors, nor do they represent a complete investment program. The applicable Fund is available only to qualified investors who are comfortable with the substantial risks associated with investing in hedge funds. An investment in hedge funds includes the risks inherent in an investment in securities, as well as specific risks associated with the use of leverage, short sales, options, futures, derivative instruments, investments in non-U.S. securities, junk bonds and illiquid investments. There can be no assurance that an investment strategy will be successful. The entirety of investors’ capital is at risk.

Limited Transferability. Investors in a Fund have a limited right to redeem or transfer interests in a Fund. In addition, interests are not listed on an exchange and it is not expected that there will be a secondary market for interests. While a Fund offers certain periodic redemption rights, there can be no assurance that a Fund will in fact do so at all or to the extent necessary to satisfy investor demand for redemptions.

“Early-Stage” or “Emerging” Managers. A Fund may invest a portion of its assets in investment funds managed by “early-stage” or “emerging” managers, which generally are investment managers that are less than two years old or have less than $500 million in AUM at the time of initial investment by the first PAAMCO client (including those who use a regulatory platform.) Early-stage managers may have less experience managing their respective investment funds and in operating an investment management firm than other managers that have been in business for a longer period of time. The relatively shorter operational experience of emerging managers could lead to greater losses for their respective investment funds and for a Fund than if that Fund had invested in funds managed by more experienced managers under similar circumstances.

GIPS. PAAMCO claims compliance with the Global Investment Performance Standards (GIPS). PAAMCO received a firm-wide verification from April 1, 2000 through June 30, 2016. To receive a list of PAAMCO composite descriptions and/or a presentation that complies with the GIPS standards, contact [email protected].

Exhibit 10

21

“PAAMCO” refers to the GIPS-compliant firm which includes PAAMCO U.S. and its subsidiaries collectively. PAAMCO U.S. is a registered investment adviser formed in March 2000. PAAMCO is an institutional investment firm dedicated to offering strategic alternative investment solutions to institutional investors around the world. PAAMCO's clients include large public and private pension plans, foundations, endowments, and financial institutions.

Pacific Alternative Asset Management Company is a registered trademark in the United States, Canada, Japan, Singapore, Australia and Mexico. PAAMCO is a registered trademark in the United States, Canada, Europe, Japan, Australia and Mexico. Pacific Alternative Asset Management Company Europe and PAAMCO Europe are registered trademarks in Europe. Pacific Alternative Asset Management Company Asia and PAAMCO Asia are registered trademarks in Singapore. completeAlpha is a registered trademark in Singapore, Japan, the EU, the U.S. and Canada and it is a trademark of PAAMCO in Australia.

Each of Pacific Alternative Asset Management Company, LLC (“PAAMCO”) and Prisma Capital Partners LP (“Prisma”) is a wholly owned subsidiary of PAAMCO Prisma Holdings, LLC. PHoldings, LLC (“PHoldings”) owns 60.1% of PAAMCO Prisma Holdings, LLC. KKR, through affiliated entities, holds the remaining 39.9% non-controlling, minority equity interest in PAAMCO Prisma Holdings, LLC. “Majority employee-owned private partnership” refers to the fact that certain employees of PAAMCO and Prisma comprise the membership of Pholdings. Non-U.S. employee ownership is via local entities. PAAMCO may at times operate offices in locations other than Bogotá, Irvine, Istanbul, London, Mexico City, Seoul and Singapore.

PAAMCO is a Core Supporter of the Hedge Fund Standards Board.

This material may not be reproduced or distributed without the express written permission of PAAMCO.

Copyright 2000-2017. All rights reserved.

Exhibit 10

To: Investment Committee From: Investment Staff Date: November 24, 2017 Re: Options Strategies 2017 Search Update

Search Update At the October 2017 Investment Committee meeting, the Board approved the recommendation to conduct a search for Equity Index Option Risk Premia Capture Strategies.

The Request for Proposal (RFP) was developed by SURS Staff and NEPC and advertised on the website of Pensions & Investments and in its October 30 print edition, along with being noticed as required in the State newspaper, and posted to the SURS website beginning October 31.

Timeline The anticipated timeline for the search process is as follows:

Proposed Timeline for the Search Date Item

October 19, 2017 Quiet Period Begins October 31, 2017 Dissemination of RFP November 10, 2017 Deadline for questions to SURS November 15, 2017 Responses to questions submitted to SURS November 21, 2017 RFP responses due by 4:30 pm CT December/January 2017 Identify firms for further consideration Week of January 8th, 2017 Interviews with selected firms February 1, 2017 Finalist presentations to SURS Board of Trustees

Update Staff and NEPC received 27 responses from options strategy providers by the November 21 deadline. A list of the respondents is shown at the end of this memo. Staff and NEPC are currently in the process of reviewing the responses and plan to narrow the list to a smaller group of semi-finalists. Interviews with semi-finalist firms are expected to be conducted the week of January 8th at an office to be determined. Trustees are invited to attend; if interested, please contact staff for additional details.

Recommendation for Funding for Option Strategies In order to fund newly hired options manager(s) in a timely manner, the hedge fund of fund providers require notice to make the cash available. In preparation for the conclusion of the options strategies search the following redemptions are recommended:

Exhibit 11

SURS staff and NEPC jointly recommend that SURS coordinate redemptions to fund option strategies, as needed, from hedge fund of funds managers Prisma and PAAMCO in approximately the following amounts:

• PAAMCO - $245 million to be withdrawn • Prisma - $115 million to be withdrawn

The proposed redemptions will result in the hedge fund portfolio returning to an approximate 60/40 split between Prisma and PAAMCO while also preserving favorable fee terms. Quiet Period Please note that the Quiet Period will remain in effect until a selection has been made by the Board and accepted by the service provider. A copy of the Quiet Period Policy Guidelines follows. Quiet Period Policy Guidelines The Quiet Period Policy is intended to establish guidelines by which Board Members and Staff will communicate with prospective service providers during the search process. The objectives of the policy are to ensure that prospective service providers competing to become employed by SURS have equal access to information regarding the search parameters; communications related to the selection are consistent and accurate; and the process of selecting service providers is efficient, diligent, and fair. The following guidelines will be instituted during a search process for a service provider:

• A quiet period will commence upon Committee action (or Board action if the selection is not initiated through a Committee) to authorize a search for a service provider and end once a selection has been made by the Board and accepted by the service provider;

• Initiation, continuation and conclusion of the quiet period shall be publicly communicated to prevent inadvertent violations;

• All Board members, and Staff not directly involved in the search process, shall refrain from communicating with service provider candidates regarding any product or service related to the search offered by the candidate throughout the quiet period and shall refrain from accepting meals, travel, hotel, or other value from the candidates;

• Throughout the quiet period, if any Board member is contacted by a candidate, the Board member shall refer the candidate to SURS Consultant or Staff directly involved in the search process;

• All authority related to the search process shall be exercised solely by the relevant Committee or Board as a whole, and not by individual Board Members;

• All information related to the search process shall be communicated by the SURS Consultant and Staff to the relevant Committee or Board as a whole, and not to individual Board Members;

• The quiet period does not prevent Board approved due diligence, client conference attendance or communications with an existing service provider that happens to be a candidate in the ordinary course of services provided by such service provider; however, discussions related to the pending selection shall be avoided during those activities;

• The provisions of this policy will apply to service provider candidates throughout the quiet period and shall be communicated to candidates in conjunction with any competitive proposal process; and

• A service provider may be disqualified from a search process for a knowing violation of this policy.

Exhibit 11

Respondents to SURS 2017 Options Search

Manager Name LocationAdvantus Capital Management St. Paul, MN

Allianz Global Investors NY, NYAnalytic Investors Minneapolis, MN

AQR Capital Greenwich, CTBerenberg Asset Management Hamburg, Germany

BlackRock NY, NYDGV Solutions Minneapolis, MN

Gateway Investment Advisors Cincinnati, OHGladius Chicago, IL

Glenmede Investment Management Philadelphia, PAGoldman Sachs NY, NY

Harvest Volatility Management NY, NYHorse Cove Partners Atlanta, GAInsight Investment NY, NY

Morgan Stanley NY, NYNeuberger Berman NY, NY

Parametric Minneapolis, MNPavlik Capital Management OakBrook Terrace, IL

PIMCO Newport Beach, CARampart Investment Management NY, NYRiver and Mercantile Derivatives Waltham, MA

Schroder Investment Management NY, NYSpiderRock Advisors Chicago, IL

State Street Global Partners Boston, MAT Rowe Price Baltimore, MD

UBS Asset Management NY, NYZiegler Capital Chicago, IL

Exhibit 11

To: Investment Committee From: SURS Staff Date: November 22, 2017 Re: Review of Diversity Goals

Introduction As required by statute, the goals for utilization of firms owned by minorities, females, and person with a disability (MFDB) have been reviewed. Staff is proposing revisions to certain goals discussed below. For your reference, a red-line version of Appendix 10 of the SURS Investment Policy follows this memo.

Brokerage Goals Staff is recommending the following changes to the brokerage goals:

• An increase from 15.0% to 20.0% in the MFDB brokerage goal for structured active U.S.equity separate accounts.

• Combination of the active and structured active non-U.S. equity categories into a singlenon-U.S. equity category (with a 15% goal).

• An increase from 10.0% to 20.0% in the MFDB brokerage goal for U.S. TIPS separateaccounts.

• Subsequent combination of the U.S. TIPS and fixed income categories into a single fixedIncome category (with a 20% goal).

Staff believes these changes represent achievable goals for the structured active U.S. equity and U.S. TIPS separate accounts.

Assets Under Management (AUM) Goals The following tables illustrate SURS’ current investment management goals and actual utilization rates, as of June 30, 2017.

Various Emerging Manager Actual Utilization Levels and Goals Actual Goal % of Fund Managed by Minority, Female and Person with a Disability-Owned Firms 28.00% 20.00% % of Fund Managed by Emerging Investment Manager Firms per P.A. 96-6 22.93% 20.00% % of Actively-Managed Assets with Emerging Firms per P.A. 96-6 26.55% 25.00%

Exhibit 12

Asset Class Minorities Women Persons with a Disability

Overall Active Actual and Goal

Actual Active Equities 25.97% 12.65% 0.00% 38.62%

Target Active Equities 20.00% 10.00% 0-2% 30.00%

Actual Active Fixed Income 23.25% 0.79% 0.00% 24.04%

Target Active Fixed Income 12.00% 8.00% 0-1% 20.00%

Actual Alternative Investments 12.83% 2.34% 1.10% 16.27%

Target Alternative Investments 0-20% of new allocations

0-20% of new allocations


20% of new allocations

Actual Active Total Fund 20.31% 6.08% 0.16% 26.55% Target Active Total Fund 16.00% 8.00% 1.00% 25.00%

Appendix A and B contain comparative information on the investment management and brokerage goals of other Illinois pension plans.

Conclusion and Recommendation Staff recommends:

• That based on the recommendation of staff and SURS investment consultant, the revised Appendix 10 to the Investment Policy document for the defined benefit plan be approved, as presented.

Exhibit 12

Teachers Retirement System of Illinois (TRS) Total Fund 15% Minority Owned Business 12% Female Owned Business 2.5% Businesses Owned by a Person with a Disability 0.5%

Equities 15% Fixed-Income 10% Alternatives 10%

Illinois Municipal Retirement Fund (IMRF) Minority Owned Business 13% Female Owned Business 6% Businesses Owned by a Person with a Disability 1% Domestic Equity 8% International Equity 15% Fixed-Income 20% Hedge Fund 15% Real Estate 4% Private Equity 10% Timberland Best Efforts Agriculture Best Efforts

State Universities Retirement System (SURS) Total Fund - Total 20% Total Fund - Actively Managed 25% Minority Owned Business 16% Female Owned Business 8% Businesses Owned by a Person with a Disability 1%

Equities 30% Minority Owned Business 20% Female Owned Business 10% Businesses Owned by a Person with a Disability 0-2%

Fixed Income 20% Minority Owned Business 12% Female Owned Business 8% Businesses Owned by a Person with a Disability 0-1%

Alternatives 20% Minority Owned Business 0-20% Female Owned Business 0-20% Businesses Owned by a Person with a Disability 0-20%

Goals for Utilization of Investment Management Firms Owned byMinorities, Females, and Persons with a Disability

Appendix A Exhibit 12

Illinois State Board of Investment (ISBI) Minority Owned Business 5-7% Female Owned Business 3-5% Businesses Owned by a Person with a Disability 0-1% Equities 8-10% Fixed-Income 10-12% Alternatives 1-5%

Public School Teachers' Pension & Retirement Fund of Chicago (CTPF) Total Fund 20% Active Assets 25%

Equities 30% Minority Owned Business 25% Female Owned Business 5% Businesses Owned by a Person with a Disability Best Efforts

Fixed Income 15% Minority Owned Business 12% Female Owned Business 3% Businesses Owned by a Person with a Disability Best Efforts

Alternatives 10% Minority Owned Business 10% Female Owned Business Best Efforts Businesses Owned by a Person with a Disability Best Efforts

County Employees' Annuity & Benefit Fund of Cook County Minority Owned Business 10-15% Female Owned Business 2.5-5% Businesses Owned by a Person with a Disability 0-1% Domestic Equity 17-20% International Equity 10-15% Fixed-Income 27-30% Alternatives 10-15%

Municipal Employees' Annuity and Benefit Fund of Chicago Minority Owned Business 14-20% Female Owned Business 3-7% Businesses Owned by a Person with a Disability 1-2% Equity 15-25% Fixed-Income 15-25% Alternatives 10-20%

Goals for Utilization of Investment Management Firms Owned byMinorities, Females, and Persons with a Disability

Appendix AExhibit 12

Teachers Retirement System of Illinois (TRS)

Domestic Equity 23% International Equity 13.5% Fixed Income (based on volume) 15%

Illinois Municipal Retirement Fund (IMRF) (All trade levels must be directly executed) U.S. Equities 25% U.S. Large-Cap Equities 30% U.S. Micro-Cap Equities 7% International Equities 20% Fixed Income 22% High-Yield Bonds 5% International Small-Cap Equities 5% Emerging Market Equities 5% Bank Loans Best efforts Opportunistic Strategies Best efforts Emerging Market Debt Best efforts

State Universities Retirement System (SURS) (All trade levels must be directly executed) Active U.S. Equity Separate Accounts 30% Passive U.S. Equity Separate Accounts 35% Structured Active Domestic Equity Separate Accounts 15% Non-U.S. Equity Separate Accounts 15% Structured Active Non-U.S. Equity Separate Accounts 15% Global Equity Separate Accounts 20% Fixed Income Separate Accounts 20% Real Estate Investment Trusts (REITS) 15% Treasury Inflation-Protected Securities (TIPS) 10%

Illinois State Board of Investment (ISBI) Domestic Equity 30% International Equity 20% Fixed Income 20% International Fixed Income 0 - 5% Hedged Equity 0 - 5%

Public School Teachers' Pension & Retirement Fund of Chicago (CTPF) (All trade levels must be directly executed unless otherwise noted) Active Domestic Managers and Manager-of-Managers All Cap, Large Cap Equity 50% Active Domestic Small Cap Equity and Passive Domestic Equity 35% Active International Managers and Manager-of-Managers All Cap, Large Cap Equity and Passive International Equity 25% Active International Small Cap Equity 5% Active and Passive fixed income managers (goal is based on volume traded) 25% Active REIT managers 10%

County Employees' Annuity & Benefit Fund of Cook County Domestic Equity 35% International Equity 10% International Small Cap 3% Emerging Markets 3% Fixed Income (based on volume) 10% Transition Management 40%

Municipal Employees' Annuity and Benefit Fund of Chicago Domestic Equity 40% International Equity - Developed 20% International Equity - Emerging 10% Fixed Income (based on volume) 25%

Minority-, Female- and Persons with a Disability- Owned Broker/Dealer Usage

October 2017Expectation Levels

Appendix B Exhibit 12

Investment Policy June December 2017

Appendix 10

Manager(1) Utilization Goals for Minority-owned Broker/Dealers

ASSET CLASS MINIMUM EXPECTATION

ELIGIBLE TRADE VOLUME ELIGIBLE

COMMISSIONS Equity: Active U.S. Equity

30.0% X (1)

Passive U.S. Equity

35.0% X (1)

Structured Active U.S. Equity

1520.0% X (12) X (1)

Non-U.S. Equity

15.0% X (2)(3) X (1)(2)

Structured Active Non-U.S. Equity

15.0% X (1)(2) X (1)(2)

Global Equity 20.0% X (1)(2) REITS 15.0% X (1)(2)

Fixed Income: Fixed Income (including TIPS)

20.0% X (12)(23)

TIPS 10.0% X (1)

‘(1) Separate account managers. ‘(2) Exception for electronic trading. ‘(23) Exception for emerging markets, as defined by Morgan Stanley Capital International.

Exhibit 13

Q3 2017 Investment Performance Analysis

November 2017

Kevin Leonard, PartnerKristin Finney-Cooke, Senior Consultant DeAnna I. Jones, Sr. Analyst

State Universities Retirement System of Illinois

Exhibit 14

NEPC Update

1

Exhibit 14

NEPC INSIGHTS• A Tale of Two Countries: What’s Next for Investors? (July 2017)

• Is the Buy-Write Strategy Right For You? (July 2017)

• 2017 2nd Quarter Market Thoughts (July 2017)

• The Top Three Stressors for Pension Plans (July 2017)

• 2017 Q2 Endowment & Foundation Survey Results & Infographic (August 2017)

• NEPC Healthcare Operating Fund Universe Results and Infographic (August 2017)

• Monitoring the Economic Impact of Harvey (August 2017)

• Market Chatter: Should the Underperformance of CTAs Give Investors Pause (September 2017)

• Defined Contribution Plan & Fee Survey: Healthcare Findings Infographic (September 2017)

HIGHLIGHTS OF THIRD QUARTER HAPPENINGS AT NEPCSeptember 30, 2017

WEBINAR REPLAYS• NEPC’s 12th Annual Defined Contribution Plan & Fee Survey (September 2017)

RECENT UPDATES• Our team continues to grow: Please join us in welcoming our new Partner, Sam Austin, and Senior Consultants, Kiersten

Christensen, Andrew Coupe and Rick Ciccione!

• NEPC was featured in over 45 pieces of news coverage including Bloomberg, Pensions & Investments and FundFireto name a few.

• SAVE THE DATE! We will be hosting our 23rd Annual Investment Conference on May 14-15, 2018.

To download NEPC’s recent insights and webinar replays, visit: www.NEPC.com/insights

2

Exhibit 14

HIGHLIGHTS OF THIRD QUARTER HAPPENINGS AT NEPCSeptember 30, 2017

NEPC GIVES BACKThis quarter NEPC participated in three charity organization events: Sox for Socks, Habitat for Humanity and the American Red Cross.

• The Sox for Socks Drive supports Boston’s Health Care for the Homeless. Theorganization provides medical care to Boston’s homeless. This year, over 100 pairsof socks were collected and donated.

• Habitat for Humanity Greater Boston is a Massachusetts charitable organizationdedicated to building homes in partnership with low-income families in need ofdecent and affordable housing. Twenty NEPC employees dedicated time and muscleto bring a home closer to occupancy in Dorchester, MA.

• We are thinking of those affected by Hurricane Harvey. In a show of support,employees donated to the American Red Cross with NEPC matching all donations.

CLIENT AWARDSWe’d like to congratulate the following clients for their recent wins at Chief Investment Officer’s 2017 Power 100 Awards:

• David Villa, State of Wisconsin Investment Board

• Bob Jacksha, New Mexico Educational Retirement Board

• Tim Barrett, Texas Tech University System

• Don Pierce, San Bernardino County Employees’ Retirement Association

• Carrie Thome, Wisconsin Alumni Research Foundation

3

Exhibit 14

Market Environment

4

Exhibit 14

Macro Equity Credit Real Assets

USDollar VIX US

10-YrS&P500

MSCIEAFE

MSCIEM

USAgg.

High Yield

DollarEMD Oil Gold REITS

-2.7% -1.7 3 bps 4.5% 5.4% 7.9% 0.8% 2.0% 2.4% 12.2% 3.1% 1.3%

• Equities continued to push higher with supportive macroeconomicdata, robust earnings, and accommodative central banks

– Emerging markets continued their outperformance led by strong returns in China

• Bond yields were little changed over the quarter – reflecting minimalvolatility seen in US economic growth and inflation rates

• Reflecting the pro-risk environment, the US dollar declined relative toboth the euro and yuan while volatility remained near historic lows

Performance Overview

Q3 Market Summary

Market segment (index representation) as follows: US Dollar (DXY Index), VIX (CBOE Volatility Index), US 10-Year (US 10-Year Treasury Yield), S&P 500 (USEquity), MSCI EAFE Index (International Developed Equity), MSCI Emerging Markets (Emerging Markets Equity), US Agg (Barclays US Aggregate BondIndex), High Yield (Barclays US High Yield Index), Dollar EMD (JPM Emerging Market Bond Index), Crude Oil (WTI Crude Oil Spot), Gold (Gold Price Spot),and REITs (NAREIT Composite Index).

5

Exhibit 14

Extended US Economic Cycle

Macro Performance Overview

• US, Europe, Japan, and Chinacontinue to grow modestly in asynchronized economic expansion

• Long-term US interest rates werelargely unchanged and reflect thelow volatility of inflation

• The US Treasury curve flattenedslightly as the 2 year rate rose

Yield6/30/17

Yield9/30/17 |∆|

US 10‐Yr 2.30% 2.33% +.03%

US 30‐Yr 2.84% 2.86% +.02%

US Real 10‐Yr 0.58% 0.49% ‐.09%

German 10‐Yr 0.47% 0.46% ‐.01%

Japan 10‐Yr 0.08% 0.06% ‐.02%

China 10‐Yr 3.56% 3.62% +.06%

EM Local Debt 6.15% 5.99% ‐.16%

‐6% ‐4% ‐2% 0% 2% 4% 6%

South African RandIndian RupeeSwiss Franc

Mexican PesoJapanese YenRussian Ruble

MSCI EM Currency IndexAustralian Dollar

Chinese YuanBritish Pound

EuroBrazilian Real

Currency Performance vs. USD

Q3 Macro Market Summary

Source: Bloomberg

Source: Bloomberg

CentralBanks

CurrentRate

CPIYOY Notes from the Quarter

FederalReserve

1.00% ‐1.25% 1.9%

Program to reduce Fed balance sheet is set to beginin October. As of quarter‐end, market’s probability of a Dec ’17 rate hike is 70%

EuropeanCentralBank

0.0% 1.5%

An accommodative monetary policy likely remains necessary in a persistent low inflation environment

Bank of

Japan‐0.10% 0.7%

The BoJ will continue its QE program as part of their yield curve control policy to keep long‐term interest rates near

zero

6

Exhibit 14


Equity Performance Overview

• US small caps rallied as theoutlook for US tax reformimproved during the quarter

• Corporate earnings growth hasaccelerated over the last 12months led by small-caps inEurope/Japan and the technologysector for the US and EM

0% 2% 4% 6% 8% 10%

MSCI EAFE HedgedS&P 500

Russell 3000MSCI ACWIMSCI EAFE

MSCI EM Small CapRussell 2000

MSCI ACWI ex‐USMSCI EAFE Small Cap

MSCI EM

QTD Equity Index Returns

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

0.7%

0.8%

0.9%

1.0%

China Japan France UK Canada

ACWI Ex‐US Index Return Contribution

Russell 3000 QTD Sector Return Contribution

Information Technology 1.8%

Industrials 0.9%

Financials 0.7%

Health Care 0.5%

Energy 0.4%

Consumer Discretionary 0.22%

Materials 0.19%

Utilities 0.13%

Telecommunication 0.05%

Real Estate ‐0.08%

Consumer Staples ‐0.14%

Q3 Equity Market Summary

Source: MSCI, Russell, S&P, Bloomberg

Source: MSCI, Bloomberg. QTD top country contributors to index returnSource: Russell, Bloomberg

7

Exhibit 14


Credit Performance Overview

• Credit spreads continue to grindlower across all areas of the creditmarkets

• High yield and dollar EMD creditspread declines support a broadreduction in exposure

• Long credit continues to benefitfrom strong demand as spreadsremain near long-term averages

Q3 Credit Market Summary

Source: Barclays, JPM, S&P, Bloomberg

Source: Barclays, JPM, S&P, Bloomberg. As of 01/31/2000Source: Barclays, Merrill Lynch, JPM, Bloomberg, NEPC

Credit Spread(Basis Points) 06/30/17 9/30/17 |∆|

BC IG Credit 103 96 ‐7

BC Long Credit 157 149 ‐8

BC Securitized 35 26 ‐9

BC High Yield 364 347 ‐17

Muni HY 386 309 ‐77

JPM EMBI 328 308 ‐20

Bank Loans ‐ Libor 346 349 +3

0200400600800100012001400160018002000

IG BBB LongCredit

Securitized HighYield

EMBI

Option Ad

justed

Spread (bps)

Median Spread Current Spread

0.0% 1.0% 2.0% 3.0%

Core Bonds

BC Securitized

Bank Loans

BC Munis

BC IG

BC Muni HY

BC Long Credit

JPM EMBI

QTD Credit Index Returns

8

Exhibit 14


Real Assets Performance Overview

• Oil prices rebounded over thequarter and appear range boundbetween $50 to $60 a barrel

• Gold prices improved and likelybenefited from a weaker dollarand geopolitical concerns

• Commodity index roll yield ismore negative than the previousquarter, though oil futures areslightly positive

‐5% 0% 5% 10% 15%

MLPs

US REITS

Global REITS

Commodities

Gold

Global Infrastructure Eq.

Natural Resource Eq.

Oil

QTD Real Assets Index ReturnsQ3 Real Assets Market Summary

Source: S&P, NAREIT, Alerian, Bloomberg

Source: NCREIF, Alerian, NAREIT, S&P, Bloomberg Source: Bloomberg, NEPC Calculated as of 10/23/2017

Real Asset Yields 6/30/17 9/30/17

MLPs 7.3% 7.8%

Core Real Estate 4.7% 4.7%

US REITs 4.1% 4.0%

Global REITs 3.7% 3.4%

Global Infrastructure Equities 3.9% 3.9%

Natural Resource Equities 3.5% 3.3%

US 10‐Yr Breakeven Inflation 1.7% 1.9%

Commodity Index Roll Yield ‐0.4% ‐1.5%‐1.2%

‐1.0%

‐0.8%

‐0.6%

‐0.4%

‐0.2%

0.0%

Energy Agriculture Precious Metals Industrial

3‐Month Commodity Future Roll Yields

9

Exhibit 14

Index Performance Summary as of 09/30/2017

Source: Bloomberg, Barclays, Alerian, Nareit, MSCI, JP Morgan, Credit Suisse

2009 2010 2011 2012 2013 2014 2015 2016 Q1 Q2 Q3 Sept YTD

MSCI EM 78.5% 18.9% -18.4% 18.2% -2.6% -2.2% -14.9% 11.2% 11.4% 6.3% 7.9% -0.4% 27.8%

MSCI EAFE 31.8% 7.8% -12.1% 17.3% 22.8% -4.9% -0.8% 1.0% 7.2% 6.1% 5.4% 2.5% 20.0%

MSCI ACWI 34.6% 12.7% -7.3% 16.1% 22.8% 4.2% -2.4% 7.9% 6.9% 4.3% 5.2% 1.9% 17.3%

JPM GBI-EM Global Div 22.0% 15.7% -1.8% 16.8% -9.0% -5.7% -14.9% 9.9% 6.5% 3.6% 3.6% -0.3% 14.3%

S&P 500 26.5% 15.1% 2.1% 16.0% 32.4% 13.7% 1.4% 12.0% 6.1% 3.1% 4.5% 2.1% 14.2%

Russell 1000 28.4% 16.1% 1.5% 16.4% 33.1% 13.2% 0.9% 12.1% 6.0% 3.1% 4.5% 2.1% 14.2%

Russell 2500 34.4% 26.7% -2.5% 17.9% 36.8% 7.1% -2.9% 17.6% 3.8% 2.1% 4.7% 4.5% 11.0%

Russell 2000 27.2% 26.9% -4.2% 16.3% 38.8% 4.9% -4.4% 21.3% 2.5% 2.5% 5.7% 6.2% 10.9%

JPM EMBI Glob Div 29.8% 12.2% 7.3% 17.4% -5.3% 7.4% 1.2% 10.2% 3.9% 2.2% 2.6% 0.0% 9.0%

BC US Long Credit 16.8% 10.7% 17.1% 12.7% -6.6% 16.4% -4.6% 10.2% 1.7% 4.7% 2.2% -0.2% 8.7%

BC US STRIPS 20+ Yr -36.0% 10.9% 58.5% 3.0% -21.0% 46.4% -3.7% 1.4% 1.8% 6.1% 0.7% -2.8% 8.7%

BC US Govt/Cred Long 1.9% 10.2% 22.5% 8.8% -8.8% 19.3% -3.3% 6.7% 1.6% 4.4% 1.5% -1.0% 7.7%

BC US Corporate HY 58.2% 15.1% 5.0% 15.8% 7.4% 2.5% -4.5% 17.1% 2.7% 2.2% 2.0% 0.9% 7.0%

BC Global Agg -6.5% -5.3% -5.3% -4.1% 2.7% -0.6% 3.3% 2.1% 1.8% 2.6% 1.8% -0.9% 6.3%

CS Hedge Fund 18.6% 10.9% -2.5% 7.7% 9.7% 4.1% -0.7% 1.2% 2.1% 0.8% 0.6% - 4.9%

BC Municipal 12.9% 2.4% 10.7% 6.8% -2.6% 9.1% 3.3% 0.2% 1.6% 2.0% 1.1% -0.5% 4.7%

FTSE NAREIT Eqy REITs 28.0% 28.0% 8.3% 18.1% 2.5% 30.1% 3.2% 8.5% 1.2% 1.5% 0.9% 0.0% 3.7%

BC US Agg Bond 5.9% 6.5% 7.8% 4.2% -2.0% 6.0% 0.5% 2.6% 0.8% 1.4% 0.8% -0.5% 3.1%

CS Leveraged Loan 44.9% 10.0% 1.8% 9.4% 6.2% 2.1% -0.4% 9.9% 1.2% 0.8% 1.1% 0.4% 3.0%

BC US Agg Interm 6.5% 6.1% 6.0% 3.6% -1.0% 4.1% 1.2% 2.0% 0.7% 0.9% 0.7% -0.4% 2.3%

BC TIPS 11.4% 6.3% 13.6% 7.0% -8.6% 3.6% -1.4% 4.7% 1.3% -0.4% 0.9% -0.6% 1.7%

BC US Govt/Cred 1-3 Yr 3.8% 2.8% 1.6% 1.3% 0.6% 0.8% 0.7% 1.3% 0.4% 0.3% 0.3% -0.1% 1.1%

BBG Commodity 18.9% 16.8% -13.3% -1.1% -9.5% -17.0% -24.7% 11.8% -2.3% -3.2% 2.5% -0.1% -2.9%

Alerian MLP 76.4% 35.9% 13.9% 4.8% 27.6% 4.8% -32.6% 18.3% 3.9% -6.4% -3.0% 0.7% -5.6%

10

Exhibit 14

Total Fund Performance

11

Exhibit 14

State Universities Retirement System of Illinois DB Plan Total Fund Net of Fee Performance Summary Net of Fee

September 30, 2017

12

Exhibit 14

Statistics Summary5 Years Ending September 30, 2017

AnlzdReturn

AnlzdReturnRank

AnlzdStandardDeviation


Rank

SharpeRatio

SharpeRatio Rank

InformationRatio

InformationRatio Rank

_

Total Fund w/ Overlay 8.74% 37 6.38% 82 1.34 54 -0.02 69

Policy Index 8.75% 36 6.14% 73 1.39 49 -- --

InvestorForce Public DB > $1B NetMedian 8.33% -- 5.64% -- 1.37 -- 0.15 --

XXXXX

State Universities Retirement System of Illinois DB PlanTotal Fund Risk/Return - Net of Fee

September 30, 201713

Exhibit 14

State Universities Retirement System of Illinois DB PlanTotal Fund Risk/Return - Net of Fee

September 30, 2017

Statistics Summary10 Years Ending September 30, 2017

AnlzdReturn

AnlzdReturnRank



Rank

SharpeRatio

SharpeRatio Rank

InformationRatio

InformationRatio Rank

_

Total Fund w/ Overlay 5.42% 29 10.70% 90 0.47 60 -0.04 58

Policy Index 5.47% 27 11.03% 94 0.46 63 -- --

InvestorForce Public DB > $1B NetMedian 5.00% -- 9.73% -- 0.49 -- -0.03 --

XXXXX

14

Exhibit 14

State Universities Retirement System of Illinois DB PlanTotal Fund Asset Allocation vs. Policy Targets

* Reflects Overlay Strategy Positioning

Asset Allocation vs. Target

Policy Current LookThrough * Current

_

Domestic Equity 25.00% 23.57% 24.69% $4,377,672,142International Equity 19.00% 19.85% 19.36% $3,686,736,898Global Equity 8.00% 8.77% 8.30% $1,628,940,543Fixed Income 19.00% 17.69% 19.06% $3,284,400,227TIPS 4.00% 3.70% 3.70% $688,005,034Emerging Market Debt 3.00% 3.19% 3.19% $593,334,418Opportunistic 1.00% 0.57% 0.57% $105,623,684Private Equity 6.00% 5.14% 5.14% $955,088,914Hedge Funds 3.00% 4.94% 4.94% $917,849,316Real Estate 6.00% 5.73% 5.73% $1,063,259,858REITs 4.00% 3.85% 3.85% $714,924,053Commodities 2.00% 1.86% 1.97% $345,350,006Overlay 0.00% 0.41% 0.60% $76,917,192Cash 0.00% 0.72% -1.10% $133,452,008Total 100.00% 100.00% 100.00% $18,571,554,293

XXXXX

September 30, 2017

15

Exhibit 14

September 30, 2017

State Universities Retirement System of Illinois DB PlanTotal Fund Performance Detail Net Of Fee

Market Value($)

% ofPortfolio Policy % 3 Mo

(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

15 Yrs(%)

_

Total Fund w/ Overlay 18,571,554,293 100.00 -- 3.58 11.82 12.15 6.70 8.74 8.82 5.42 8.53Policy Index 3.44 11.30 11.73 6.64 8.75 9.00 5.47 8.60

Domestic Equity 4,377,672,142 23.57 23.00 4.67 13.80 19.20 10.64 14.14 14.16 7.53 10.29Dow Jones U.S. Total Stock Market 4.57 13.95 18.67 10.69 14.15 14.25 7.64 10.52

Total Non US Equity 3,686,736,898 19.85 19.00 6.32 22.74 20.53 5.71 7.92 6.31 1.44 8.90International Equity Custom Benchmark 6.16 21.13 19.61 4.70 6.97 5.25 1.28 8.88

Global Equity 1,628,940,543 8.77 8.00 4.46 19.69 19.33 9.28 11.43 9.91 4.54 9.45Global Equity Custom Benchmark 5.18 17.25 18.65 7.43 10.20 9.17 3.82 8.91

Fixed Income 3,284,400,227 17.69 19.00 1.10 3.68 1.35 2.78 2.23 3.18 4.91 5.03Fixed Income Custom Benchmark 0.85 3.14 0.07 2.71 2.06 2.95 4.27 4.45

Emerging Market Debt 593,334,418 3.19 3.00 3.78 12.99 7.70 -- -- -- -- --50% JPM GBI-EM GD/25% JPM EMBI GD/25% JPM Corp Broad 3.01 11.17 6.35 3.18 2.01 3.33 5.47 --

TIPS 688,005,034 3.70 4.00 0.86 2.01 -0.35 1.40 -0.03 2.58 4.33 4.67TIPS Custom Benchmark 0.86 1.72 -0.73 1.62 0.02 2.64 3.90 4.20

REITs 714,924,053 3.85 4.00 1.83 7.17 0.57 7.55 7.95 9.43 4.16 10.13REITs Custom Benchmark 1.61 6.53 0.57 7.62 7.82 9.33 3.69 9.66

Real Estate 1,063,259,858 5.73 6.00 1.28 4.23 6.47 9.95 11.11 12.35 4.14 6.40NCREIF ODCE Net Qtr Lag 1.47 4.97 6.89 10.33 10.76 12.03 4.28 7.27

Private Equity 955,088,914 5.14 6.00 2.80 9.86 13.81 7.14 10.26 10.75 7.65 9.43Dow Jones US Total Stock Market +3% (1 Quarter Lag) 3.76 15.99 22.02 12.28 17.90 18.73 10.52 12.09

Opportunity Fund 105,623,684 0.57 1.00 3.70 2.10 2.47 4.56 8.40 10.29 9.01 9.85Opportunity Fund Custom Benchmark 0.47 1.46 1.63 3.90 5.17 5.93 1.78 5.46

Hedge Funds 917,849,316 4.94 5.00 1.86 5.42 6.25 -- -- -- -- --3 Month LIBOR + 5% 1.57 4.68 6.22 5.72 5.54 5.50 5.87 6.71HFRI Fund of Funds Composite Index 2.27 5.55 6.46 2.22 3.84 2.88 1.07 3.70

Commodities 345,350,006 1.86 2.00 4.70 1.13 2.40 -- -- -- -- --Bloomberg Commodity Index 2.52 -2.87 -0.29 -10.41 -10.47 -6.82 -6.83 -0.31

Cash 133,452,008 0.72 -- 0.31 0.74 0.93 0.49 0.35 0.29 0.64 1.4991 Day T-Bills 0.26 0.62 0.72 0.32 0.21 0.17 0.36 1.19

XXXXX

16

Exhibit 14

Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

Total Fund w/ Overlay 18,571,554,293 100.00 -- 3.58 11.82 12.15 6.70 8.74 8.82 5.42 9.27 Jan-75Policy Index 3.44 11.30 11.73 6.64 8.75 9.00 5.47 -- Jan-75

Over/Under 0.14 0.52 0.42 0.06 -0.01 -0.18 -0.05InvestorForce Public DB > $1B Net Median 3.51 11.35 12.51 6.57 8.33 8.43 5.00 -- Jan-75

Total Fund 18,494,638,448 99.59 100.00 3.55 11.66 12.01 6.68 8.72 8.81 5.41 9.27 Jan-75Policy Index 3.44 11.30 11.73 6.64 8.75 9.00 5.47 -- Jan-75

Over/Under 0.11 0.36 0.28 0.04 -0.03 -0.19 -0.06InvestorForce Public DB > $1B Net Median 3.51 11.35 12.51 6.57 8.33 8.43 5.00 -- Jan-75

Total Public Equity 9,693,350,705 52.19 -- 5.28 17.97 19.95 8.78 11.66 -- -- 9.80 Jan-11MSCI ACWI 5.18 17.25 18.65 7.43 10.20 9.17 3.88 8.17 Jan-11

Over/Under 0.10 0.72 1.30 1.35 1.46 1.63eA All Global Equity Net Median 5.05 17.05 17.94 7.79 10.68 10.06 4.43 9.04 Jan-11

Domestic Equity 4,377,672,142 23.57 23.00 4.67 13.80 19.20 10.64 14.14 14.16 7.53 11.10 Oct-80Dow Jones U.S. Total Stock Market 4.57 13.95 18.67 10.69 14.15 14.25 7.64 -- Oct-80

Over/Under 0.10 -0.15 0.53 -0.05 -0.01 -0.09 -0.11eA All US Equity Net Median 4.47 12.36 18.46 9.90 13.57 13.38 7.61 12.43 Oct-80

Large Active 1,002,590,891 5.40 -- 5.14 15.62 20.87 10.80 -- -- -- 10.57 Jan-14S&P 500 4.48 14.24 18.61 10.81 14.22 14.38 7.44 10.90 Jan-14

Over/Under 0.66 1.38 2.26 -0.01 -0.33eA US Large Cap Equity Net Median 4.46 13.60 18.16 9.39 13.38 13.37 7.25 9.45 Jan-14

Piedmont Advisors 580,126,217 3.12 5.49 15.00 21.40 11.76 15.20 15.16 -- 8.06 Jan-08S&P 500 4.48 14.24 18.61 10.81 14.22 14.38 7.44 8.01 Jan-08

Over/Under 1.01 0.76 2.79 0.95 0.98 0.78 0.05eA US Large Cap Equity Net Median 4.46 13.60 18.16 9.39 13.38 13.37 7.25 7.72 Jan-08

T. Rowe Price 422,349,581 2.27 4.66 16.47 20.15 11.75 14.67 14.71 -- 9.87 Apr-08S&P 500 4.48 14.24 18.61 10.81 14.22 14.38 7.44 9.36 Apr-08

Over/Under 0.18 2.23 1.54 0.94 0.45 0.33 0.51eA US Large Cap Equity Net Median 4.46 13.60 18.16 9.39 13.38 13.37 7.25 8.95 Apr-08


1. Performance shown is net of investment management fees.2. Fiscal year starts on July 1st. 3. Policy Index and allocation Index inception returns are n/a due to Policy history going back to July 1980 and allocation history going back to January 2014.

September 30, 2017

17

Exhibit 14

September 30, 2017


Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

Passive US Equity 2,289,251,219 12.33 -- 4.61 13.79 18.84 10.84 -- -- -- 10.55 Jan-14S&P 500 4.48 14.24 18.61 10.81 14.22 14.38 7.44 10.90 Jan-14

Over/Under 0.13 -0.45 0.23 0.03 -0.35 Northern Trust Stock Market Index 1,472,063,975 7.93 4.57 13.89 18.81 10.74 14.17 14.29 7.70 6.54 Jan-99

Dow Jones U.S. Total Stock Market 4.57 13.95 18.67 10.69 14.15 14.25 7.64 6.44 Jan-99Over/Under 0.00 -0.06 0.14 0.05 0.02 0.04 0.06 0.10 eA US All Cap Equity Net Median 4.04 12.88 17.08 8.72 12.62 12.50 6.98 8.03 Jan-99

Rhumbline 817,187,244 4.40 4.67 13.62 18.87 10.98 14.30 14.30 7.70 8.51 Feb-05Rhumbline Custom Benchmark 4.59 13.72 18.89 10.96 14.27 14.28 7.61 8.50 Feb-05

Over/Under 0.08 -0.10 -0.02 0.02 0.03 0.02 0.09 0.01 eA US All Cap Equity Net Median 4.04 12.88 17.08 8.72 12.62 12.50 6.98 8.39 Feb-05

Mid Cap 331,168,149 1.78 -- 3.36 11.93 16.18 9.37 -- -- -- 8.69 Jan-14Russell MidCap 3.47 11.74 15.32 9.54 14.26 13.80 8.08 9.48 Jan-14

Over/Under -0.11 0.19 0.86 -0.17 -0.79 eA US Mid Cap Equity Net Median 3.70 11.87 16.37 9.39 13.49 13.20 8.10 8.67 Jan-14

EARNEST Partners 143,913,573 0.77 4.16 16.25 22.10 12.68 15.36 -- -- 12.75 Jul-11Russell MidCap 3.47 11.74 15.32 9.54 14.26 13.80 8.08 11.92 Jul-11

Over/Under 0.69 4.51 6.78 3.14 1.10 0.83 eA US Mid Cap Equity Net Median 3.70 11.87 16.37 9.39 13.49 13.20 8.10 11.27 Jul-11

Channing Capital Management 187,184,950 1.01 2.76 7.78 13.79 8.24 14.39 13.56 7.73 8.51 Apr-05Russell MidCap Value 2.14 7.43 13.37 9.19 14.33 13.76 7.85 9.18 Apr-05

Over/Under 0.62 0.35 0.42 -0.95 0.06 -0.20 -0.12 -0.67 eA US Mid Cap Value Equity Net Median 3.03 8.17 15.52 9.47 13.93 13.10 8.10 9.34 Apr-05

Small Cap 360,687,263 1.94 -- 5.50 12.65 20.89 9.47 -- -- -- 6.21 Jan-14Russell 2000 5.67 10.94 20.74 12.18 13.79 13.51 7.85 8.32 Jan-14

Over/Under -0.17 1.71 0.15 -2.71 -2.11 eA US Small Cap Equity Net Median 5.26 10.04 20.49 11.75 13.98 13.73 7.99 8.19 Jan-14

Mesirow Financial 177,687,255 0.96 4.51 9.69 21.51 10.49 12.89 -- -- 9.87 Jun-11Russell 2000 5.67 10.94 20.74 12.18 13.79 13.51 7.85 10.86 Jun-11

Over/Under -1.16 -1.25 0.77 -1.69 -0.90 -0.99 eA US Small Cap Equity Net Median 5.26 10.04 20.49 11.75 13.98 13.73 7.99 11.07 Jun-11

CastleArk Management 183,000,008 0.99 6.49 18.42 19.68 9.42 13.61 -- -- 14.58 Sep-12Russell 2000 Growth 6.22 16.81 20.98 12.17 14.28 14.17 8.47 14.70 Sep-12

Over/Under 0.27 1.61 -1.30 -2.75 -0.67 -0.12 eA US Small Cap Growth Equity Net Median 5.94 18.48 21.09 12.17 13.91 14.36 8.01 14.38 Sep-12

18

Exhibit 14

September 30, 2017

1.MSCI ACWI ex USA and International Equity Custom Banchmark inception returns are n/a due to no return history going back to May 1986.2.International Custom Benchmark is the MSCI ACW ex USA net.

Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

Gladius Composite 393,974,620 2.12 -- 4.25 12.67 -- -- -- -- -- 12.67 Jan-17Russell 3000 4.57 13.91 18.71 10.74 14.22 14.28 7.57 13.91 Jan-17

Over/Under -0.32 -1.24 -1.24Gladius - PB 78,292,449 0.42 4.61 12.11 -- -- -- -- -- 12.11 Jan-17Gladius 315,682,171 1.70 4.16 12.81 -- -- -- -- -- 12.81 Jan-17

Total Non US Equity 3,686,736,898 19.85 19.00 6.32 22.74 20.53 5.71 7.92 6.31 1.44 6.45 May-86International Equity Custom Benchmark 6.16 21.13 19.61 4.70 6.97 5.25 1.28 -- May-86

Over/Under 0.16 1.61 0.92 1.01 0.95 1.06 0.16eA All ACWI ex-US Equity Net Median 6.63 24.14 20.25 6.70 8.88 7.19 2.82 8.62 May-86

BlackRock Intl Equity Fund 1,191,719,706 6.42 6.12 21.51 20.02 5.27 7.46 5.62 1.74 6.75 May-86MSCI ACWI ex USA 6.16 21.13 19.61 4.70 6.97 5.25 1.28 -- May-86

Over/Under -0.04 0.38 0.41 0.57 0.49 0.37 0.46eA All ACWI ex-US Equity Net Median 6.63 24.14 20.25 6.70 8.88 7.19 2.82 8.62 May-86

BlackRock Emerging Markets 236,830,750 1.28 7.83 27.63 22.15 4.72 3.81 2.33 -- 4.42 Nov-09MSCI Emerging Markets 7.89 27.78 22.46 4.90 3.99 2.54 1.32 4.63 Nov-09

Over/Under -0.06 -0.15 -0.31 -0.18 -0.18 -0.21 -0.21eA Emg Mkts Equity Net Median 7.76 28.41 21.88 5.29 5.21 3.57 2.31 6.02 Nov-09

Progress Emerging Non-US Equity 218,667,811 1.18 6.34 22.32 22.10 5.76 8.58 -- -- 9.29 Sep-12MSCI EAFE 5.40 19.96 19.10 5.04 8.38 6.38 1.34 8.86 Sep-12

Over/Under 0.94 2.36 3.00 0.72 0.20 0.43eA All ACWI ex-US Equity Net Median 6.63 24.14 20.25 6.70 8.88 7.19 2.82 9.54 Sep-12

BlackRock Intl Alpha Tilts 524,826,497 2.83 5.78 22.85 23.14 7.04 10.89 8.44 2.51 7.72 Nov-03MSCI EAFE 5.40 19.96 19.10 5.04 8.38 6.38 1.34 6.67 Nov-03

Over/Under 0.38 2.89 4.04 2.00 2.51 2.06 1.17 1.05eA All EAFE Equity Net Median 5.91 21.39 19.72 6.33 9.39 7.71 2.66 7.75 Nov-03

Strategic Global Advisors 333,142,073 1.79 5.73 21.68 19.91 7.29 11.44 10.29 -- 7.22 Sep-08MSCI EAFE 5.40 19.96 19.10 5.04 8.38 6.38 1.34 3.82 Sep-08

Over/Under 0.33 1.72 0.81 2.25 3.06 3.91 3.40eA All EAFE Equity Net Median 5.91 21.39 19.72 6.33 9.39 7.71 2.66 5.29 Sep-08


19

Exhibit 14

Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

Ativo 278,890,424 1.50 4.69 20.47 12.22 4.92 7.81 6.06 -- 4.27 Aug-08MSCI ACWI ex USA 6.16 21.13 19.61 4.70 6.97 5.25 1.28 3.07 Aug-08

Over/Under -1.47 -0.66 -7.39 0.22 0.84 0.81 1.20eA All ACWI ex-US Equity Net Median 6.63 24.14 20.25 6.70 8.88 7.19 2.82 4.87 Aug-08

GlobeFlex Capital 321,570,574 1.73 8.71 27.99 26.19 8.21 10.44 9.05 1.17 7.22 Mar-04MSCI EAFE/ACWI Ex USA Custom Benchmark 6.16 21.13 19.61 4.70 6.97 5.41 0.69 5.29 Mar-04

Over/Under 2.55 6.86 6.58 3.51 3.47 3.64 0.48 1.93eA All ACWI ex-US Equity Net Median 6.63 24.14 20.25 6.70 8.88 7.19 2.82 7.48 Mar-04

Fidelity Investments 581,090,185 3.13 6.52 22.77 19.73 5.27 7.58 6.28 1.02 5.92 Jan-04MSCI EAFE/ACWI Ex USA Custom Benchmark 6.16 21.13 19.61 4.70 6.97 5.41 0.69 5.51 Jan-04

Over/Under 0.36 1.64 0.12 0.57 0.61 0.87 0.33 0.41eA All ACWI ex-US Equity Net Median 6.63 24.14 20.25 6.70 8.88 7.19 2.82 7.73 Jan-04

Global Equity 1,628,940,543 8.77 8.00 4.46 19.69 19.33 9.28 11.43 9.91 4.54 7.26 Jun-02Global Equity Custom Benchmark 5.18 17.25 18.65 7.43 10.20 9.17 3.82 6.85 Jun-02

Over/Under -0.72 2.44 0.68 1.85 1.23 0.74 0.72 0.41eA All Global Equity Net Median 5.05 17.05 17.94 7.79 10.68 10.06 4.43 7.92 Jun-02

Wellington 537,354,419 2.89 4.78 18.61 19.32 9.05 12.43 10.87 5.01 7.75 May-02MSCI ACWI 5.18 17.25 18.65 7.43 10.20 9.17 3.88 7.02 May-02

Over/Under -0.40 1.36 0.67 1.62 2.23 1.70 1.13 0.73eA All Global Equity Net Median 5.05 17.05 17.94 7.79 10.68 10.06 4.43 7.98 May-02

Mondrian 529,109,060 2.85 4.61 16.60 16.97 6.95 9.39 -- -- 9.73 Dec-11MSCI ACWI 5.18 17.25 18.65 7.43 10.20 9.17 3.88 10.92 Dec-11

Over/Under -0.57 -0.65 -1.68 -0.48 -0.81 -1.19eA All Global Equity Net Median 5.05 17.05 17.94 7.79 10.68 10.06 4.43 11.42 Dec-11

T. Rowe Price Global 562,477,063 3.03 4.02 23.84 21.97 13.11 16.04 12.68 -- 13.75 Nov-08MSCI ACWI 5.18 17.25 18.65 7.43 10.20 9.17 3.88 10.80 Nov-08

Over/Under -1.16 6.59 3.32 5.68 5.84 3.51 2.95eA All Global Equity Net Median 5.05 17.05 17.94 7.79 10.68 10.06 4.43 11.26 Nov-08

Fixed Income 3,284,400,227 17.69 19.00 1.10 3.68 1.35 2.78 2.23 3.18 4.91 8.66 Sep-81Fixed Income Custom Benchmark 0.85 3.14 0.07 2.71 2.06 2.95 4.27 -- Sep-81

Over/Under 0.25 0.54 1.27 0.07 0.17 0.23 0.64eA All US Fixed Inc Net Median 0.90 3.35 1.14 2.86 2.48 3.46 4.39 8.76 Sep-81


September 30, 2017

1. MSCI EAFE/ACWI Ex USA Custom Benchmark is MSCI EAFE through 11/30/2011 and MSCI ACWI Ex USA thereafter.

20

Exhibit 14

Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

TCW / Met West 547,838,382 2.95 0.87 3.31 0.68 2.74 2.64 4.10 5.96 5.76 Oct-01BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 4.49 Oct-01

Over/Under 0.02 0.17 0.61 0.03 0.58 1.15 1.69 1.27eA US Core Plus Fixed Inc Net Median 1.08 4.17 1.79 3.24 2.90 4.03 5.23 5.42 Oct-01

PIMCO Total Return 398,741,573 2.15 1.84 4.42 1.37 3.10 2.37 3.35 5.59 5.61 Aug-04BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 4.30 Aug-04

Over/Under 0.99 1.28 1.30 0.39 0.31 0.40 1.32 1.31eA US Core Plus Fixed Inc Net Median 1.08 4.17 1.79 3.24 2.90 4.03 5.23 5.16 Aug-04

Pugh Capital 163,971,473 0.88 0.92 3.38 0.16 2.77 2.21 3.24 4.85 4.97 Apr-06BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 4.49 Apr-06

Over/Under 0.07 0.24 0.09 0.06 0.15 0.29 0.58 0.48eA US Core Fixed Inc Net Median 0.86 3.30 0.36 2.85 2.26 3.26 4.55 4.72 Apr-06

Smith Graham 105,651,950 0.57 0.92 3.16 0.36 2.98 2.27 3.19 4.41 4.58 Apr-06BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 4.49 Apr-06

Over/Under 0.07 0.02 0.29 0.27 0.21 0.24 0.14 0.09eA US Core Fixed Inc Net Median 0.86 3.30 0.36 2.85 2.26 3.26 4.55 4.72 Apr-06

Garcia Hamilton 312,738,726 1.68 0.44 2.58 0.00 3.03 3.05 4.12 -- 5.73 Mar-09BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 4.17 Mar-09

Over/Under -0.41 -0.56 -0.07 0.32 0.99 1.17 1.56eA US Core Fixed Inc Net Median 0.86 3.30 0.36 2.85 2.26 3.26 4.55 4.92 Mar-09

SSgA-BC Aggregate Index 614,866,580 3.31 0.85 3.15 0.09 2.72 2.08 2.97 -- 2.97 Oct-10BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 2.95 Oct-10

Over/Under 0.00 0.01 0.02 0.01 0.02 0.02 0.02eA US Core Fixed Inc Net Median 0.86 3.30 0.36 2.85 2.26 3.26 4.55 3.26 Oct-10

LM Capital 164,722,135 0.89 1.00 3.63 0.75 3.23 2.35 -- -- 3.72 Jan-11BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 3.26 Jan-11

Over/Under 0.15 0.49 0.68 0.52 0.29 0.46eA US Core Plus Fixed Inc Net Median 1.08 4.17 1.79 3.24 2.90 4.03 5.23 4.25 Jan-11

Neuberger Berman 349,341,135 1.88 1.03 4.02 1.61 3.37 2.79 -- -- 4.08 Jan-11BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 3.26 Jan-11

Over/Under 0.18 0.88 1.54 0.66 0.73 0.82eA US Core Plus Fixed Inc Net Median 1.08 4.17 1.79 3.24 2.90 4.03 5.23 4.25 Jan-11

September 30, 2017


21

Exhibit 14

Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

PIMCO Unconstrained 479,045,141 2.58 1.71 5.09 6.47 2.89 -- -- -- 2.20 Jun-13BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 2.55 Jun-13

Over/Under 0.86 1.95 6.40 0.18 -0.35eA US Core Plus Fixed Inc Net Median 1.08 4.17 1.79 3.24 2.90 4.03 5.23 3.09 Jun-13

Progress Emerging Fixed Income 147,483,512 0.79 0.97 3.63 0.99 2.85 2.34 -- -- 2.40 Sep-12BBgBarc US Aggregate TR 0.85 3.14 0.07 2.71 2.06 2.95 4.27 2.06 Sep-12

Over/Under 0.12 0.49 0.92 0.14 0.28 0.34eA US Core Fixed Inc Net Median 0.86 3.30 0.36 2.85 2.26 3.26 4.55 2.29 Sep-12

Emerging Market Debt 593,334,418 3.19 3.00 3.78 12.99 7.70 -- -- -- -- 4.87 Apr-1550% JPM GBI-EM GD/25% JPM EMBI GD/25% JPM CorpBroad 3.01 11.17 6.35 3.18 2.01 3.33 5.47 5.72 Apr-15

Over/Under 0.77 1.82 1.35 -0.85eA All Emg Mkts Fixed Inc Net Median 3.32 11.58 7.44 4.58 3.10 4.69 6.53 6.06 Apr-15

Progress Emerging EMD 79,618,386 0.43 3.15 9.23 8.29 -- -- -- -- 6.22 May-15JP Morgan Corporate EMBI Broad 2.28 7.25 6.00 5.53 4.80 5.49 6.57 5.97 May-15

Over/Under 0.87 1.98 2.29 0.25eA All Emg Mkts Fixed Inc Net Median 3.32 11.58 7.44 4.58 3.10 4.69 6.53 5.06 May-15

Colchester 114,363,199 0.62 3.31 15.56 9.27 -- -- -- -- 3.60 May-15JP Morgan GBI - EM Global Diversified Index 3.55 14.28 7.32 0.26 -0.91 0.68 3.80 3.30 May-15

Over/Under -0.24 1.28 1.95 0.30eA All Emg Mkts Fixed Inc Net Median 3.32 11.58 7.44 4.58 3.10 4.69 6.53 5.06 May-15

Prudential EMD 207,196,543 1.12 3.80 13.88 8.11 -- -- -- -- 8.57 Jul-1550% JPM EMBI Global Diversified/ 50% JPM GBI-EMGlobal Diversified 3.09 11.61 5.98 3.41 2.02 3.51 5.67 6.85 Jul-15

Over/Under 0.71 2.27 2.13 1.72eA All Emg Mkts Fixed Inc Net Median 3.32 11.58 7.44 4.58 3.10 4.69 6.53 6.62 Jul-15


September 30, 2017

22

Exhibit 14

1. TIPS Custom Benchmark is the Barclays US Tips Index. 2. REITS Custom Benchmark is the FTSE EPRA/NAREIT Developed Index

Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

Bluebay EMD Select 192,156,290 1.03 4.30 12.14 6.13 -- -- -- -- 3.81 Apr-1550% JPM EMBI Global Diversified/ 50% JPM GBI-EMGlobal Diversified 3.09 11.61 5.98 3.41 2.02 3.51 5.67 5.87 Apr-15

Over/Under 1.21 0.53 0.15 -2.06eA All Emg Mkts Fixed Inc Net Median 3.32 11.58 7.44 4.58 3.10 4.69 6.53 6.06 Apr-15

TIPS 688,005,034 3.70 4.00 0.86 2.01 -0.35 1.40 -0.03 2.58 4.33 5.76 Apr-99TIPS Custom Benchmark 0.86 1.72 -0.73 1.62 0.02 2.64 3.90 5.31 Apr-99

Over/Under 0.00 0.29 0.37 -0.22 -0.05 -0.06 0.43 0.45eA TIPS / Infl Indexed Fixed Inc Net Median 0.88 1.67 -0.67 1.43 -0.01 2.38 4.02 -- Apr-99

Rhumbline TIPS 686,121,631 3.69 0.88 -- -- -- -- -- -- -0.08 Jun-17BBgBarc US TIPS TR 0.86 1.72 -0.73 1.62 0.02 2.64 3.90 -0.09 Jun-17

Over/Under 0.02 0.01eA TIPS / Infl Indexed Fixed Inc Net Median 0.88 1.67 -0.67 1.43 -0.01 2.38 4.02 -0.03 Jun-17

REITs 714,924,053 3.85 4.00 1.83 7.17 0.57 7.55 7.95 9.43 4.16 11.39 Mar-00REITs Custom Benchmark 1.61 6.53 0.57 7.62 7.82 9.33 3.69 10.66 Mar-00

Over/Under 0.22 0.64 0.00 -0.07 0.13 0.10 0.47 0.73eA Global REIT Net Median 1.58 7.55 2.22 6.64 7.81 8.63 2.95 -- Mar-00

BlackRock Global REIT 714,924,053 3.85 1.83 7.21 1.38 6.61 -- -- -- 5.93 Mar-13FTSE EPRA/NAREIT Developed 1.61 6.53 0.57 5.87 6.73 7.52 1.79 5.23 Mar-13

Over/Under 0.22 0.68 0.81 0.74 0.70eA Global REIT Net Median 1.58 7.55 2.22 6.64 7.81 8.63 2.95 6.42 Mar-13

Real Estate 1,063,259,858 5.73 6.00 1.28 4.23 6.47 9.95 11.11 12.35 4.14 5.22 Jan-85NCREIF ODCE Net Qtr Lag 1.47 4.97 6.89 10.33 10.76 12.03 4.28 -- Jan-85

Over/Under -0.19 -0.74 -0.42 -0.38 0.35 0.32 -0.14Dune Fund II 24,196,859 0.13 0.00 -0.80 5.31 11.98 16.55 15.94 -- 7.69 Apr-09

NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 7.36 Apr-09Over/Under -1.85 -6.94 -3.18 0.01 4.14 2.25 0.33

Dune Fund III 89,396,583 0.48 0.00 7.61 7.98 8.80 -- -- -- 8.12 Jul-13NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 12.59 Jul-13

Over/Under -1.85 1.47 -0.51 -3.17 -4.47


September 30, 2017

23

Exhibit 14

September 30, 2017


Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

Franklin Templeton EMREFF 32,581,970 0.18 0.15 4.54 21.76 17.52 16.96 -- -- 11.85 Sep-11NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 13.14 Sep-11

Over/Under -1.70 -1.60 13.27 5.55 4.55 -1.29Franklin Templeton FTPREF 12,073,983 0.07 8.20 22.48 24.72 24.19 23.58 -- -- 17.05 Jul-12

NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 12.34 Jul-12Over/Under 6.35 16.34 16.23 12.22 11.17 4.71

Mesirow MFIRE II 38,721,438 0.21 2.20 5.22 8.10 9.28 5.99 -- -- 5.43 Apr-12NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 12.34 Apr-12

Over/Under 0.35 -0.92 -0.39 -2.69 -6.42 -6.91RREEF America III Fund 265,687 0.00 -2.94 -3.88 -16.36 -3.22 6.17 14.86 -5.85 -3.64 May-06

NCREIF ODCE 1.87 5.44 7.66 10.84 11.59 12.52 5.03 6.62 May-06Over/Under -4.81 -9.32 -24.02 -14.06 -5.42 2.34 -10.88 -10.26

UBS Trumbull Property Fund 374,860,183 2.02 0.00 1.94 3.19 7.58 8.48 9.91 4.25 5.36 Jul-06NCREIF ODCE 1 Qtr Lag 1.70 5.68 7.87 11.34 11.78 13.08 5.25 6.55 Jul-06

Over/Under -1.70 -3.74 -4.68 -3.76 -3.30 -3.17 -1.00 -1.19RREEF Funds 136,188 0.00 -0.12 -2.63 -2.70 -2.50 -2.23 -2.08 -1.18 3.62 May-84

NCREIF ODCE 1.87 5.44 7.66 10.84 11.59 12.52 5.03 7.50 May-84Over/Under -1.99 -8.07 -10.36 -13.34 -13.82 -14.60 -6.21 -3.88

JP Morgan Strategic 204,782,161 1.10 1.50 4.62 6.65 9.65 -- -- -- 9.66 Jul-14NCREIF ODCE 1 Qtr Lag 1.70 5.68 7.87 11.34 11.78 13.08 5.25 11.41 Jul-14

Over/Under -0.20 -1.06 -1.22 -1.69 -1.75Heitman Hart Fund 198,361,935 1.07 0.00 2.39 4.79 10.24 -- -- -- 9.68 Aug-14

NCREIF ODCE 1 Qtr Lag 1.70 5.68 7.87 11.34 11.78 13.08 5.25 11.72 Aug-14Over/Under -1.70 -3.29 -3.08 -1.10 -2.04

Franklin Templeton MDP RE 2015 15,556,146 0.08 1.90 -4.78 -5.32 -- -- -- -- -11.80 Oct-15NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 10.46 Oct-15

Over/Under 0.05 -10.92 -13.81 -22.26Crow Holdings Realty Partners VII 32,412,404 0.17 5.54 9.69 10.81 -- -- -- -- 2.99 Feb-16

NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 10.09 Feb-16Over/Under 3.69 3.55 2.32 -7.10

24

Exhibit 14

Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

Brookfield Strategy RE Partners II 21,281,000 0.11 4.19 11.34 9.25 -- -- -- -- 9.75 Mar-16NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 10.56 Mar-16

Over/Under 2.34 5.20 0.76 -0.81Blue Vista RE Partners IV 18,633,321 0.10 3.43 5.92 7.19 -- -- -- -- -7.00 May-16

NCREIF ODCE Net Qtr Lag +1.5% 1.85 6.14 8.49 11.97 12.41 13.69 5.84 9.29 May-16Over/Under 1.58 -0.22 -1.30 -16.29

Private Equity 955,088,914 5.14 6.00 2.80 9.86 13.81 7.14 10.26 10.75 7.65 14.79 Jul-90Dow Jones US Total Stock Market +3% (1 Quarter Lag) 3.76 15.99 22.02 12.28 17.90 18.73 10.52 13.16 Jul-90

Over/Under -0.97 -6.13 -8.21 -5.14 -7.64 -7.98 -2.87 1.63Opportunity Fund 105,623,684 0.57 1.00 3.70 2.10 2.47 4.56 8.40 10.29 9.01 9.83 Apr-99

Opportunity Fund Custom Benchmark 0.47 1.46 1.63 3.90 5.17 5.93 1.78 -- Apr-99Over/Under 3.22 0.64 0.84 0.66 3.23 4.36 7.23

Alinda Capital Partners 32,019,136 0.17 6.71 -2.33 -3.83 4.41 5.40 5.51 -- 6.85 Jan-10CPI +5% (1 Quarter Lag) 1.70 5.24 6.71 5.96 6.37 6.76 6.71 6.71 Jan-10

Over/Under 5.01 -7.57 -10.54 -1.55 -0.97 -1.25 0.14Macquarie Capital 33,865,935 0.18 1.93 0.57 2.96 3.14 6.08 8.58 -- 9.45 May-10

CPI +5% (1 Quarter Lag) 1.70 5.24 6.71 5.96 6.37 6.76 6.71 6.74 May-10Over/Under 0.23 -4.67 -3.75 -2.82 -0.29 1.82 2.71

Macquarie Inf Partners Fnd III 39,738,613 0.21 2.91 9.56 10.81 -- -- -- -- 1.00 Nov-14CPI + 5% 1 Qtr Lag (Seasonally Adjusted) 1.24 4.92 6.72 5.94 6.35 6.74 6.71 5.93 Nov-14

Over/Under 1.67 4.64 4.09 -4.93Hedge Funds 917,849,316 4.94 5.00 1.86 5.42 6.25 -- -- -- -- 4.37 Mar-16

3 Month LIBOR + 5% 1.57 4.68 6.22 5.72 5.54 5.50 5.87 6.05 Mar-16Over/Under 0.29 0.74 0.04 -1.68eV Alt Fund of Funds - Multi-Strategy Median 2.08 5.32 6.49 2.63 5.35 4.61 3.05 7.26 Mar-16

KKR Prisma Codlin Fund 459,710,594 2.48 2.24 5.34 5.98 -- -- -- -- 3.65 Mar-16HFRI Fund of Funds Composite Index 2.27 5.55 6.46 2.22 3.84 2.88 1.07 6.40 Mar-16

Over/Under -0.03 -0.21 -0.48 -2.75eV Alt Fund of Funds - Multi-Strategy Median 2.08 5.32 6.49 2.63 5.35 4.61 3.05 7.26 Mar-16

Newport Monarch 458,138,722 2.47 1.49 5.55 6.66 -- -- -- -- 6.09 Apr-16HFRI Fund of Funds Composite Index 2.27 5.55 6.46 2.22 3.84 2.88 1.07 6.24 Apr-16

Over/Under -0.78 0.00 0.20 -0.15eV Alt Fund of Funds - Multi-Strategy Median 2.08 5.32 6.49 2.63 5.35 4.61 3.05 7.21 Apr-16


September 30, 2017

25

Exhibit 14


September 30, 2017

Market Value($)


(%)YTD(%)

1 Yr(%)

3 Yrs(%)

5 Yrs(%)

7 Yrs(%)

10 Yrs(%)

Return(%) Since

_

Commodities 345,350,006 1.86 2.00 4.70 1.13 2.40 -- -- -- -- 3.14 Jun-16Bloomberg Commodity Index 2.52 -2.87 -0.29 -10.41 -10.47 -6.82 -6.83 -0.14 Jun-16

Over/Under 2.18 4.00 2.69 3.28Invesco Balanced Risk 243,688,371 1.31 4.80 -2.09 -2.03 -- -- -- -- -3.77 Jul-16

Bloomberg Commodity Index 2.52 -2.87 -0.29 -10.41 -10.47 -6.82 -6.83 -3.33 Jul-16Over/Under 2.28 0.78 -1.74 -0.44

PIMCO Commodity Alpha Fund 101,661,635 0.55 4.47 9.77 14.86 -- -- -- -- 16.96 Jun-16Bloomberg Commodity Index 2.52 -2.87 -0.29 -10.41 -10.47 -6.82 -6.83 -0.14 Jun-16

Over/Under 1.95 12.64 15.15 17.10Cash 133,452,008 0.72 -- 0.31 0.74 0.93 0.49 0.35 0.29 0.64 5.03 Sep-81

91 Day T-Bills 0.26 0.62 0.72 0.32 0.21 0.17 0.36 4.05 Sep-81Over/Under 0.05 0.12 0.21 0.17 0.14 0.12 0.28 0.98

Cash 133,452,008 0.72 0.31 0.74 0.93 0.49 0.35 0.29 0.64 5.03 Sep-8191 Day T-Bills 0.26 0.62 0.72 0.32 0.21 0.17 0.36 4.05 Sep-81

Over/Under 0.05 0.12 0.21 0.17 0.14 0.12 0.28 0.98Dow Jones US Total Stock Market +3% (1 Quarter Lag) 3.76 15.99 22.02 12.28 17.90 18.73 10.52 -- Sep-81

eA US Cash Management Net Median 0.30 0.76 0.93 0.53 0.37 0.30 0.68 -- Sep-81Total Overlay 76,917,192 0.41 -- 4.58 33.74 32.41 1.11 -- -- -- --

Clifton Overlay 76,917,192 0.41 4.58 33.74 32.41 1.11 -- -- -- 1.11 Oct-1491 Day T-Bills 0.26 0.62 0.72 0.32 0.21 0.17 0.36 0.32 Oct-14

Over/Under 4.32 33.12 31.69 0.79 0.79XXXXX

26

Exhibit 14

Overlay Performance DetailState Universities Retirement System of Illinois DB Plan

*The inception date of the overlay program is October 2014**The above market values are all sourced from analysis provided by the Clifton Group

September 30, 2017

Index QTD YTD 1 Year

4.5% 14.2% 18.6%

5.4% 20.0% 19.1%

0.9% 3.1% 0.1%

S&P 500

MSCI EAFE

Bloomberg Barclays Agg.

Bloomberg Commodity Index 2.5% -2.9% -0.3%

Overlay Notional Exposure

Quarter Gain/Loss YTD Gain/Loss Since Inception

Gain/LossDomestic Equity Futures 120,287,853 7,140,037 22,038,145 73,502,580

Non U.S. Equity Index Futures (167,076,091) (1,622,337) (2,656,714) 13,036,512

Fixed Income Futures 254,611,697 (2,456,829) 1,115,770 7,902,462

Commodity Futures 20,030,008 (189,247) 97,873 (82,589,030)

Currency & Currency Futures NA 326,949 273,910 60,617

Cash & Cash Equivalent NA 38,105 472,369 1,055,701

Total 227,853,467 3,236,678 $21,341,353 $12,968,842

27

Exhibit 14

September 30, 2017

State Universities Retirement System of Illinois DB PlanTotal Fund w/Overlay Return Summary vs. Peer Universe

28

Exhibit 14

State Universities Retirement System of Illinois DB PlanTotal Fund w/Overlay Return Summary vs. Peer Universe

September 30, 2017

29

Exhibit 14

State Universities Retirement System of Illinois DB PlanTotal Fund Allocations vs. Peer Universe

September 30, 2017

30

Exhibit 14

Attribution Summary3 Months Ending September 30, 2017Wtd.

ActualReturn

Wtd. IndexReturn

ExcessReturn

SelectionEffect

AllocationEffect

InteractionEffects

TotalEffects

Domestic Equity 4.67% 4.57% 0.10% 0.02% 0.00% 0.00% 0.03%Total Non US Equity 6.32% 6.16% 0.16% 0.03% 0.03% 0.00% 0.06%Global Equity 4.46% 5.18% -0.72% -0.06% 0.01% 0.00% -0.05%Fixed Income 1.10% 0.85% 0.25% 0.05% 0.03% 0.00% 0.07%Emerging Market Debt 3.78% 3.01% 0.77% 0.02% 0.00% 0.00% 0.02%TIPS 0.86% 0.86% -0.00% 0.00% 0.01% 0.00% 0.01%REITs 1.83% 1.61% 0.22% 0.01% 0.00% 0.00% 0.01%Real Estate 1.28% 1.47% -0.19% -0.01% 0.01% 0.00% -0.01%Private Equity 2.80% 3.76% -0.97% -0.06% 0.00% 0.01% -0.05%Opportunity Fund 3.70% 0.47% 3.22% 0.03% 0.01% -0.02% 0.03%Hedge Funds 1.86% 1.57% 0.29% 0.01% 0.00% 0.00% 0.02%Commodities 4.70% 2.52% 2.18% 0.04% 0.00% 0.00% 0.04%Cash 0.31% 0.26% 0.05% -- -- -- --Total 3.58% 3.44% 0.14% 0.10% 0.10% -0.02% 0.18%

State Universities Retirement System of Illinois DB PlanTotal Fund Attribution Analysis

September 30, 2017

31

Exhibit 14

Attribution Summary1 Year Ending September 30, 2017

Wtd.ActualReturn

Wtd. IndexReturn

ExcessReturn

SelectionEffect

AllocationEffect

InteractionEffects

TotalEffects

Domestic Equity 19.20% 18.67% 0.53% 0.13% 0.01% 0.00% 0.14%Total Non US Equity 20.53% 19.61% 0.92% 0.17% 0.05% 0.01% 0.22%Global Equity 19.33% 18.65% 0.68% 0.05% 0.00% 0.02% 0.08%Fixed Income 1.35% 0.07% 1.27% 0.26% 0.07% -0.01% 0.33%Emerging Market Debt 7.70% 6.35% 1.35% 0.05% -0.01% 0.00% 0.03%TIPS -0.35% -0.73% 0.37% 0.02% 0.01% 0.00% 0.03%REITs 0.57% 0.57% 0.00% 0.00% 0.00% 0.00% 0.00%Real Estate 6.47% 6.89% -0.42% -0.03% 0.01% 0.00% -0.02%Private Equity 13.81% 22.02% -8.21% -0.48% -0.08% 0.05% -0.50%Opportunity Fund 2.47% 1.63% 0.84% 0.01% 0.04% -0.01% 0.04%Hedge Funds 6.25% 6.22% 0.04% 0.01% 0.01% -0.01% 0.01%Commodities 2.40% -0.29% 2.69% 0.06% 0.00% 0.00% 0.06%Cash 0.93% 0.72% 0.21% -- -- -- --Total 12.15% 11.73% 0.42% 0.25% 0.11% 0.06% 0.42%

State Universities Retirement System of Illinois DB PlanTotal Fund Attribution Analysis

September 30, 2017

32

Exhibit 14

3 Years Ending September 30, 2017

% of Tot Anlzd Ret Anlzd RetRk

Anlzd StdDev

Anlzd StdDev Rk Anlzd AJ Anlzd AJ

RKSharpeRatio Sharpe Rk Sortino

Ratio RFSortino RF

RkTracking

ErrorTracking

Error Rank_

Total Fund 99.59% 6.70% 47 6.46% 84 -0.06% 61 0.99 75 1.37 66 0.96% 39 Policy Index -- 6.64% 48 6.24% 76 0.00% 57 1.01 63 1.54 47 0.00% 1Total Public Equity 52.19% 8.78% 35 10.40% 40 1.51% 45 0.81 34 1.19 39 1.20% 1 MSCI ACWI -- 7.43% 56 10.57% 43 0.00% 66 0.67 56 1.00 58 0.00% 1Domestic Equity 23.57% 10.64% 40 10.42% 28 -0.22% 44 0.99 26 1.38 47 0.69% 1 Dow Jones U.S. Total StockMarket -- 10.69% 39 10.24% 25 0.00% 41 1.01 23 1.46 39 0.00% 1

Large Active 5.40% 10.80% 26 10.26% 42 -0.13% 32 1.02 25 1.46 39 1.24% 1 S&P 500 -- 10.81% 25 10.07% 34 0.00% 30 1.04 21 1.58 29 0.00% 1Progress Emerging: US Equity 0.00% 1.05% 99 15.48% 95 -9.08% 99 0.05 99 0.04 99 12.13% 97 Russell 3000 -- 10.74% 49 10.24% 26 0.00% 52 1.02 32 1.46 50 0.00% 1Gladius Composite 2.12% -- -- -- -- -- -- -- -- -- -- -- -- Russell 3000 -- 10.74% -- 10.24% -- 0.00% -- 1.02 -- 1.46 -- 0.00% --Passive US Equity 12.33% 10.84% -- 10.19% -- -0.04% -- 1.03 -- 1.48 -- 1.09% -- S&P 500 -- 10.81% -- 10.07% -- 0.00% -- 1.04 -- 1.58 -- 0.00% --Mid Cap 1.78% 9.37% 51 11.19% 54 -0.47% 55 0.81 50 1.14 61 2.65% 2 Russell MidCap -- 9.54% 47 10.53% 31 0.00% 47 0.88 40 1.29 46 0.00% 1Small Cap 1.94% 9.47% 77 13.41% 37 -1.63% 79 0.68 75 0.93 81 2.88% 3 Russell 2000 -- 12.18% 44 14.48% 67 0.00% 59 0.82 50 1.28 58 0.00% 1Total Non US Equity 19.85% 5.71% 66 11.96% 57 1.13% 70 0.45 67 0.77 62 1.13% 1 International Equity CustomBenchmark -- 4.70% 81 12.25% 67 0.00% 83 0.36 82 0.60 79 0.00% 1

Progress Emerging Non-US Equity 1.18% 5.76% 65 12.23% 66 0.81% 70 0.45 68 0.73 67 2.08% 1 MSCI EAFE -- 5.04% 76 12.27% 67 0.00% 82 0.38 78 0.62 78 0.00% 1Global Equity 8.77% 9.28% 29 10.72% 48 1.83% 38 0.84 31 1.25 33 1.65% 1 Global Equity CustomBenchmark -- 7.43% 56 10.57% 43 0.00% 66 0.67 56 1.00 58 0.00% 1

Fixed Income 17.69% 2.78% 52 2.40% 41 0.52% 49 1.03 41 1.31 53 0.83% 12 Fixed Income CustomBenchmark -- 2.71% 54 2.85% 58 0.00% 76 0.84 64 1.11 69 0.00% 1

Progress Emerging Fixed Income 0.79% 2.85% 50 2.76% 45 0.26% 42 0.92 44 1.27 39 0.57% 45 BBgBarc US Aggregate TR -- 2.71% 61 2.85% 67 0.00% 67 0.84 67 1.11 72 0.00% 1Emerging Market Debt 3.19% -- -- -- -- -- -- -- -- -- -- -- --

State Universities Retirement System of Illinois DB PlanTotal Fund Risk Statistics

September 30, 2017

33

Exhibit 14


Anlzd StdDev



Ratio RFSortino RF

RkTracking

ErrorTracking

Error Rank_

50% JPM GBI-EM GD/25%JPM EMBI GD/25% JPM CorpBroad

-- 3.18% 61 7.90% 60 0.00% 61 0.36 61 0.57 60 0.00% 1

TIPS 3.70% 1.40% 54 3.68% 66 -0.24% 56 0.29 51 0.62 39 0.48% 37 TIPS Custom Benchmark -- 1.62% 25 3.58% 60 0.00% 22 0.36 21 0.79 20 0.00% 1REITs 3.85% 7.55% 25 12.28% 99 -0.11% 40 0.59 38 1.09 33 0.49% 1 REITs Custom Benchmark -- 7.62% 25 12.21% 99 0.00% 39 0.60 34 1.10 32 0.00% 1Real Estate 5.73% 9.95% -- 2.28% -- 8.06% -- 4.22 -- 121.05 -- 4.30% -- NCREIF ODCE Net Qtr Lag -- 10.33% -- 4.40% -- 0.00% -- 2.27 -- 104.61 -- 0.00% --Private Equity 5.14% 7.14% -- 3.82% -- 7.64% -- 1.78 -- 10.38 -- 11.96% -- Dow Jones US Total StockMarket +3% (1 Quarter Lag) -- 12.28% -- 10.63% -- 0.00% -- 1.13 -- 2.07 -- 0.00% --

Opportunity Fund 0.57% 4.56% -- 5.00% -- 4.06% -- 0.85 -- 1.66 -- 5.10% -- Opportunity Fund CustomBenchmark -- 3.90% -- 1.08% -- 0.00% -- 3.31 -- 14.77 -- 0.00% --

Hedge Funds 4.94% -- -- -- -- -- -- -- -- -- -- -- -- 3 Month LIBOR + 5% -- 5.72% 15 0.11% 1 0.00% 13 47.17 1 -- -- 0.00% 1Commodities 1.86% -- -- -- -- -- -- -- -- -- -- -- -- Bloomberg Commodity Index -- -10.41% -- 13.03% -- 0.00% -- -0.82 -- -1.14 -- 0.00% --Cash 0.72% 0.49% -- 0.11% -- 0.17% -- 1.55 -- 205.45 -- 0.04% -- 91 Day T-Bills -- 0.32% -- 0.10% -- 0.00% -- 0.00 -- -- -- 0.00% --

XXXXX

September 30, 2017


34

Exhibit 14

5 Years Ending September 30, 2017


Anlzd StdDev



Ratio RFSortino RF

RkTracking

ErrorTracking

Error Rank_

Total Fund 99.59% 8.74% 37 6.38% 82 -0.24% 68 1.34 54 2.15 59 0.89% 33 Policy Index -- 8.75% 36 6.14% 73 0.00% 60 1.39 49 2.48 29 0.00% 1Total Public Equity 52.19% 11.66% 36 9.85% 32 1.64% 41 1.16 28 1.90 29 1.31% 1 MSCI ACWI -- 10.20% 58 9.94% 35 0.00% 72 1.00 56 1.57 60 0.00% 1Domestic Equity 23.57% 14.14% 40 9.98% 23 -0.24% 38 1.40 18 2.29 29 0.61% 1 Dow Jones U.S. Total StockMarket -- 14.15% 39 9.80% 19 0.00% 33 1.42 14 2.44 19 0.00% 1

Large Active 5.40% -- -- -- -- -- -- -- -- -- -- -- -- S&P 500 -- 14.22% 32 9.55% 25 0.00% 28 1.47 12 2.53 19 0.00% 1Progress Emerging: US Equity 0.00% 7.65% 99 13.58% 83 -6.52% 98 0.55 99 0.56 99 9.45% 91 Russell 3000 -- 14.22% 53 9.80% 21 0.00% 47 1.43 25 2.45 29 0.00% 1Passive US Equity 12.33% -- -- -- -- -- -- -- -- -- -- -- -- S&P 500 -- 14.22% -- 9.55% -- 0.00% -- 1.47 -- 2.53 -- 0.00% --Mid Cap 1.78% -- -- -- -- -- -- -- -- -- -- -- -- Russell MidCap -- 14.26% 39 10.41% 23 0.00% 37 1.35 24 2.34 33 0.00% 1Small Cap 1.94% -- -- -- -- -- -- -- -- -- -- -- -- Russell 2000 -- 13.79% 55 14.00% 63 0.00% 75 0.97 61 1.61 66 0.00% 1Gladius Composite 2.12% -- -- -- -- -- -- -- -- -- -- -- -- Russell 3000 -- 14.22% -- 9.80% -- 0.00% -- 1.43 -- 2.45 -- 0.00% --Total Non US Equity 19.85% 7.92% 67 11.31% 48 1.11% 73 0.68 66 1.18 53 0.98% 1 International Equity CustomBenchmark -- 6.97% 82 11.55% 60 0.00% 88 0.59 81 0.99 80 0.00% 1

Progress Emerging Non-US Equity 1.18% 8.58% 56 11.47% 58 0.52% 59 0.73 55 1.23 50 2.10% 1 MSCI EAFE -- 8.38% 61 11.73% 64 0.00% 73 0.70 63 1.21 51 0.00% 1Global Equity 8.77% 11.43% 39 9.95% 36 1.37% 45 1.13 33 1.84 35 1.70% 2 Global Equity CustomBenchmark -- 10.20% 58 9.94% 35 0.00% 72 1.00 56 1.57 60 0.00% 1

Fixed Income 17.69% 2.23% 55 2.57% 45 0.39% 58 0.78 60 1.00 62 0.71% 10 Fixed Income CustomBenchmark -- 2.06% 59 2.84% 54 0.00% 79 0.65 74 0.91 69 0.00% 1

Progress Emerging Fixed Income 0.79% 2.34% 42 2.81% 44 0.32% 42 0.76 45 1.04 43 0.50% 40 BBgBarc US Aggregate TR -- 2.06% 66 2.84% 50 0.00% 68 0.65 67 0.91 61 0.00% 1


September 30, 2017

35

Exhibit 14


Anlzd StdDev



Ratio RFSortino RF

RkTracking

ErrorTracking

Error Rank_

Emerging Market Debt 3.19% -- -- -- -- -- -- -- -- -- -- -- -- 50% JPM GBI-EM GD/25%JPM EMBI GD/25% JPM CorpBroad

-- 2.01% 58 7.86% 57 0.00% 59 0.23 58 0.34 57 0.00% 1

TIPS 3.70% -0.03% 52 4.61% 71 -0.05% 52 -0.05 52 -0.07 52 0.45% 31 TIPS Custom Benchmark -- 0.02% 47 4.47% 59 0.00% 41 -0.04 41 -0.05 41 0.00% 1REITs 3.85% 7.95% 49 12.15% 99 0.12% 68 0.64 63 1.04 50 0.47% 1 REITs Custom Benchmark -- 7.82% 50 12.12% 99 0.00% 71 0.63 65 0.99 67 0.00% 1Real Estate 5.73% 11.11% -- 2.61% -- 10.48% -- 4.18 -- 20.21 -- 5.03% -- NCREIF ODCE Net Qtr Lag -- 10.76% -- 4.48% -- 0.00% -- 2.36 -- 128.11 -- 0.00% --Private Equity 5.14% 10.26% -- 4.17% -- 10.49% -- 2.41 -- 13.50 -- 10.89% -- Dow Jones US Total StockMarket +3% (1 Quarter Lag) -- 17.90% -- 9.81% -- 0.00% -- 1.80 -- 3.45 -- 0.00% --

Opportunity Fund 0.57% 8.40% -- 5.63% -- 6.36% -- 1.45 -- 3.59 -- 5.67% -- Opportunity Fund CustomBenchmark -- 5.17% -- 1.16% -- 0.00% -- 4.28 -- 21.18 -- 0.00% --

Hedge Funds 4.94% -- -- -- -- -- -- -- -- -- -- -- -- 3 Month LIBOR + 5% -- 5.54% 45 0.11% 1 0.00% 40 50.11 1 -- -- 0.00% 1Commodities 1.86% -- -- -- -- -- -- -- -- -- -- -- -- Bloomberg Commodity Index -- -10.47% -- 11.92% -- 0.00% -- -0.90 -- -1.31 -- 0.00% --Cash 0.72% 0.35% -- 0.10% -- 0.13% -- 1.33 -- 160.21 -- 0.03% -- 91 Day T-Bills -- 0.21% -- 0.09% -- 0.00% -- 0.00 -- -- -- 0.00% --

XXXXX


September 30, 2017

36

Exhibit 14

SURS experienced a positive quarter, with a nominal IRR of 1.74%, and 7.46% for the trailing twelve months. The annualized IRR of the SURS Private Markets Real Estate portfolio since inception was 5.87% at quarter end. The following is a comparison of the trailing period performance of the SURS Private Markets Real Estate program to NCREIF NPI, NCREIF ODCE and NAREIT Real Estate indices. Since inception, the Total Value to Paid In multiple (current valuation plus cumulative distributions, divided by total capital calls) was 1.34. As of June 30, 2017 SURS had commitments totaling $1,241.17 million to 14 Private Markets Real Estate funds. Of the total 14 funds in the SURS Private Markets Real Estate portfolio, 6 funds are in the investing stage, 4 funds are in the harvesting stage, 1 completed fund and 3 funds have an open ended structure.

Private Real Estate – Q2 2017 Performance

September 30, 2017

State Universities Retirement System of Illinois DB Plan

37

Exhibit 14

SURS experienced a negative quarter, having a nominal IRR of (1.32%) for the quarter. The annualized IRR of the Real Assets portfolio since inception was 7.06% at quarter end. Since inception, the Total Value to Paid In multiple (current valuation plus cumulative distributions, divided by total capital calls) was 1.29. As of June 30, 2017, SURS had gross commitments totaling $130.0 million to 3 Real Assets funds. Of the 3 funds, 1 fund is in the investing stage and 2 funds are in the harvesting stage.

Infrastructure – Q2 2017 Performance

September 30, 2017


38

Exhibit 14

Private Equity – Q2 2017 Performance

September 30, 2017


SURS experienced a positive quarter, having a nominal IRR of 2.79% for the quarter. The annualized IRR of the private markets portfolio since inception was 19.98% at quarter end. Since inception, the Total Value to Paid In multiple (current valuation plus cumulative distributions, divided by total capital calls) was 1.64. As of June 30, 2017, SURS had gross commitments totaling $3,236.52 million to 38 private markets funds. Of the 38 funds, 12 funds are in the investing stage, 20 funds are in the harvesting stage, 4 funds are liquidating and 2 funds have been completed.

39

Exhibit 14

Private Equity – Q2 2017 Performance

September 30, 2017


40

Exhibit 14

Regional AllocationTotal Public Equity MSCI ACWI

Region WeightingNorth America ex U.S. 2.1 3.3United States 56.1 52.3Europe Ex U.K. 14.1 15.7United Kingdom 5.4 5.7Pacific Basin Ex Japan 4.7 5.3Japan 7.4 7.7Emerging Markets 10.1 9.9Other 0.1 0.2

CharacteristicsPortfolio MSCI ACWI

Number of Holdings 5,738 2,491Weighted Avg. Market Cap. ($B) 94.4 111.2Median Market Cap. ($B) 4.9 10.0Price To Earnings 23.6 23.0Price To Book 4.4 3.7Price To Sales 3.2 2.9Return on Equity (%) 18.6 16.3Yield (%) 2.2 2.3Beta 1.0 1.0R-Squared 1.0 1.0

State Universities Retirement System of Illinois DB PlanTotal Public Equity

September 30, 2017

41

Exhibit 14

State Universities Retirement System of Illinois DB PlanGlobal Equity

Regional AllocationGlobal Equity MSCI ACWI


CharacteristicsPortfolio MSCI ACWI

Number of Holdings 503 2,491Weighted Avg. Market Cap. ($B) 104.7 111.2Median Market Cap. ($B) 20.0 10.0Price To Earnings 24.4 23.0Price To Book 4.8 3.7Price To Sales 3.5 2.9Return on Equity (%) 18.1 16.3Yield (%) 2.0 2.3Beta 1.0 1.0R-Squared 1.0 1.0

September 30, 2017

42

Exhibit 14

Characteristics

PortfolioDow Jones U.S.

Total StockMarket


State Universities Retirement System of Illinois DB PlanDomestic Equity

September 30, 2017

43

Exhibit 14

Regional AllocationTotal Non US Equity MSCI ACWI ex USA


State Universities Retirement System of Illinois DB PlanNon - US Equity

September 30, 2017

Characteristics

Portfolio MSCI ACWI exUSA


44

Exhibit 14

September 30, 2017

State Universities Retirement System of Illinois DB PlanFixed Income

Other denotes derivatives contractsNegative numbers represent short positions

45

Exhibit 14

Manager Updates

46

Exhibit 14

The items below summarize any changes or announcements from your Plan managers/funds. A “Yes” indicates there was an announcement and a summary is provided separately. NEPC’s Due Diligence Committee meets every two weeks to review events as they relate to investment managers and determines if any action should be taken by NEPC and/or by our clients. They rate events: No Action, Watch, Hold, Client Review or Terminate. NEPC considers ourselves to be a fiduciary, as ERISA defines the term in Section 3(21).

NEPC Due Diligence Committee Recommendation Key

No Action Informational items have surfaced; no action is recommended.

Watch Issues have surfaced to be concerned over; manager can participate in future searches, but current and prospectiveclients must be made aware of the issues.

Hold Serious issues have surfaced to be concerned over; manager cannot be in future searches unless a clientspecifically requests, but current and prospective clients must be made aware of the issues.

Client Review Very serious issues have surfaced with a manager; manager cannot be in future searches unless a client specificallyrequests. Current clients must be advised to review the manager.

Terminate We have lost all confidence in the product; manager would not be recommended for searches and clients would bediscouraged from using. The manager cannot be in future searches unless a client specifically requests. Currentclients must be advised to replace the manager.

A legend key to our recommendations is provided below.

Due Diligence Monitor

Manager/Fund Strategy

Manager Changes/Announcements (Recent Quarter)

NEPC Due Diligence Committee

Recommendations

Colchester Global Investors Limited

Colchester Global Investors Limited announced the addition of Carl Roberts to the Emerging Markets Debt team as a portfolio manager. Mr. Roberts left PictetAsset Management over the summer and joined Colchester on July 31. Colchester does not formally announce the addition of new employees until they have completed their three month probationary period.

No action

BlueBay Emerging Market

Bluebay has gone through a long period of struggle. Instability continues, from recent top management transition at the firm level (CEO and board), to continued team turnover even though more mid-level fires and hires and not high level decision making personnel, this attempt at changing blood and process enhancement to date has not worked. Underperformance persists, and asset outflows specifically in EM Select remain at an alarming rate.

Hold

September 30, 2017


47

Exhibit 14

Appendix

48

Exhibit 14

Information Disclaimer

• Past performance is no guarantee of future results.

• All investments carry some level of risk. Diversification and other asset allocation techniques are not guaranteed toensure profit or protect against losses.

• NEPC’s source for portfolio pricing, calculation of accruals, and transaction information is the plan’s custodian bank.Information on market indices and security characteristics is received from other sources external to NEPC. While NEPChas exercised reasonable professional care in preparing this report, we cannot guarantee the accuracy of all sourceinformation contained within.

• Some index returns displayed in this report or used in calculation of a policy, allocation or custom benchmark may bepreliminary and subject to change.

• This report is provided as a management aid for the client’s internal use only. Information contained in this report doesnot constitute a recommendation by NEPC.

• This report may contain confidential or proprietary information and may not be copied or redistributed to any party notlegally entitled to receive it.

Reporting Methodology

• The client’s custodian bank is NEPC’s preferred data source unless otherwise directed. NEPC generally reconcilescustodian data to manager data. If the custodian cannot provide accurate data, manager data may be used.

• Trailing time period returns are determined by geometrically linking the holding period returns, from the first full monthafter inception to the report date. Rates of return are annualized when the time period is longer than a year. Performanceis presented gross and/or net of manager fees as indicated on each page.

• For managers funded in the middle of a month, the “since inception” return will start with the first full month, althoughactual inception dates and cash flows are taken into account in all Composite calculations.

• This report may contain forward-looking statements that are based on NEPC’s estimates, opinions and beliefs, but NEPCcannot guarantee that any plan will achieve its targeted return or meet other goals.

Information Disclaimer and Reporting Methodology

49

Exhibit 14

To: Investment Committee From: Investment Staff Date: November 24, 2017 Re: General Consulting Search Update

Search Update At the October 2017 Investment Committee meeting the Board approved the recommendation to conduct a search for defined benefit general consulting services.

The Request for Proposal (RFP) was developed by SURS Staff and advertised on the website of Pensions & Investments and in its October 30 print edition, along with being noticed as required in the State newspaper, and posted to the SURS website beginning October 23.



October 19, 2017 Quiet Period Begins October 23, 2017 Dissemination of RFP November 2, 2017 Deadline for questions to SURS November 10, 2017 Responses to questions submitted to SURS November 21, 2017 RFP responses due by 4:30 pm CT Dec 2017/Jan 2018 Identify firms for further consideration January 16-17, 2018 Candidate interviews February 1, 2018 Finalist presentations to SURS Board of Trustees

Update Staff received 4 responses from consulting firms by the November 21 deadline. Staff is currently in the process of reviewing the responses. The respondents are as follows:

Interviews with the firms are scheduled for January 16-17, 2018 in Chicago. Trustees are invited to attend; if interested, please contact staff for additional details.

Consultant Name HeadquartersPension Consulting Alliance Portland, ORNEPC Boston, MAMeketa Investment Group Westwood, MAAon Hewitt Investment Consulting Chicago, IL

Exhibit 15

Quiet Period Please note that the Quiet Period will remain in effect until a selection has been made by the Board and accepted by the service provider. A copy of the Quiet Period Policy Guidelines follows. Quiet Period Policy Guidelines The Quiet Period Policy is intended to establish guidelines by which Board Members and Staff will communicate with prospective service providers during the search process. The objectives of the policy are to ensure that prospective service providers competing to become employed by SURS have equal access to information regarding the search parameters; communications related to the selection are consistent and accurate; and the process of selecting service providers is efficient, diligent, and fair. The following guidelines will be instituted during a search process for a service provider:










Exhibit 15

To: Investment Committee From: Investment Staff Date: November 24, 2017 Re: Defined Contribution Consultant Search Update

Search Update At the October 2017 Investment Committee meeting the Board approved the recommendation to conduct a search for defined contribution consulting services.

The Request for Proposal (RFP) was developed by SURS Staff and advertised on the website of Pensions & Investments and in its October 30, 2017 print edition, along with being noticed as required in the State newspaper, and posted to the SURS website beginning October 27, 2017.



October 19, 2017 Quiet Period Begins October 27, 2017 Dissemination of RFP November 17, 2017 Bidder’s Conference November 24, 2017 Deadline for questions to SURS December 1, 2017 Responses to questions submitted to SURS December 22, 2017 RFP responses due by 4:30 pm CT January 2018 Identify firms for further consideration Week of February 2, 2018 Interviews with selected firms March 8, 2018 Finalist presentations to SURS Board of Trustees

Update Staff conducted an optional bidder’s conference on November 17, 2017 at SURS’ office in Champaign to discuss current and anticipated needs in the defined contribution space and give respondents an initial opportunity to ask questions. Respondents were able to participate either by phone or in person. Four different firms participated in the conference. The next step in the process is to give firms the opportunity to submit questions in writing. The deadline for questions is November 24, 2017. Staff will respond to questions by December 1, 2017.

RFP responses are due December 22, 2017. Interviews with semi-finalist firms are expected to be conducted during the week of February 2, 2018 at SURS’ office in Champaign. Trustees are invited to attend; if interested, please contact staff for additional details.

Exhibit 16

Quiet Period Please note that the Quiet Period will remain in effect until a selection has been made by the Board and accepted by the service provider. A copy of the Quiet Period Policy Guidelines follows. Quiet Period Policy Guidelines The Quiet Period Policy is intended to establish guidelines by which Board Members and Staff will communicate with prospective service providers during the search process. The objectives of the policy are to ensure that prospective service providers competing to become employed by SURS have equal access to information regarding the search parameters; communications related to the selection are consistent and accurate; and the process of selecting service providers is efficient, diligent, and fair. The following guidelines will be instituted during a search process for a service provider:










Exhibit 16

Manager Status ReviewQuarter Ended September 30, 2017

Exhibit 17

Manager Status Criteria

Based on the SURS Investment Policy, adopted June 9, 2017, managers of marketable securities will be categorized in one of three ways based on investment performance.

• Good Standing: A Manager’s three (3) year and five (5) year rolling Annualized Alpha (net of fees) each exceed their Active Manager Premiums (AMPs) for such periods. Managers with less than a five (5) year performance history will be considered in Good Standing.

• Enhanced Review: A Manager’s three (3) year or five (5) year rolling Annualized Alphas (net of fees) are above their respective Benchmarks but below their AMPs.

• Reassessment: A Manager’s (i) three (3) year and five (5) year rolling Annualized Alphas (net of fees) are below their respective Benchmarks for the preceding two consecutive quarters, and (ii) three (3) year and five (5) year Information Ratios are negative for the preceding two consecutive quarters; or other performance metrics reflect a significant negative trend.

Exhibit 17

Manager Status Review

Manager Strategy Status

CastleArk U.S. Smallcap Growth Enhanced Review

Mesirow U.S. Smallcap Core Enhanced Review

EARNEST U.S. Midcap Core Enhanced Review

Channing U.S. Midcap Value Enhanced Review

T. Rowe Price Large Cap Structured Active U.S. Equity Enhanced Review

Piedmont Large Cap Structured Active U.S. Equity Good Standing

U.S. Equity Managers

Non U.S. Equity Managers


Ativo All Cap Non‐US Equity Enhanced Review

Fidelity Structured Active Non‐US Equity Enhanced Review

GlobeFlex All Cap Non‐US Equity Good Standing

Progress Large Cap Non‐USDeveloped Good Standing

Strategic Global Advisors

Large Cap Non‐US Developed Good Standing

BlackRock Structured Active Non‐US Equity Good Standing

Exhibit 17



Mondrian Global Equity Enhanced Review

Wellington Global Equity Enhanced Review

T. Rower Price Global Equity Good Standing

Global Equity Managers

Core Fixed Income Managers


Garcia Hamilton Core Fixed Income Enhanced Review

Pugh Core Fixed Income Enhanced Review

Smith Graham Core Fixed Income Enhanced Review

LM Core Plus Fixed Income Enhanced Review

PIMCO Total Return Core Plus Fixed Income Enhanced Review

TCW Core Plus Fixed Income Enhanced Review

Progress Core Fixed Income Good Standing

Neuberger Berman Core Plus Fixed Income Good Standing

PIMCO Unconstrained Absolute Return Fixed Income Good Standing

Exhibit 17



BlueBay EM Debt Good Standing

Colchester EM Debt Good Standing

Progress EM Debt Good Standing

Prudential EM Debt Good Standing

Emerging Market Debt Managers

Exhibit 17

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr

SURS Total Equity 19.20 10.64 14.14 14.16 7.53Dow Jones Total US 18.67 10.69 14.15 14.25 7.64Excess Returns 0.53 -0.05 -0.01 -0.09 -0.11

Annualized Alpha (Risk Adjusted Excess Return) -0.62 -0.20 -0.22 -0.35 -0.28Active Manager Premium 0.00 0.00 0.00 0.00 0.00Excess Risk Adjusted Returns -0.62 -0.20 -0.22 -0.35 -0.28

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr

Standard Deviation 6.43 10.42 9.98 11.57 16.09Standard Deviation - Benchmark 6.00 10.24 9.80 11.32 15.61Beta 1.06 1.02 1.02 1.02 1.03R-Squared 0.98 1.00 1.00 1.00 1.00

Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr

Sharpe Ratio 2.88 0.99 1.40 1.21 0.44Treynor Ratio 17.45 10.19 13.72 13.71 6.91Sortino Ratio 7.98 1.76 2.67 2.16 0.63Tracking Error 0.89 0.69 0.61 0.62 1.01Information Ratio 0.60 -0.09 -0.02 -0.15 -0.11Upside Market Capture 103.21 99.99 100.40 100.51 101.93Downside Market Capture 104.23 100.53 100.95 101.66 102.23

Three Year Rolling Performance Statistics as of:Jun-16 Sep-16 Dec-16 Mar-17 Jun-17

Alpha -0.48 -0.55 -0.38 -0.47 -0.30Tracking Error 0.54 0.51 0.69 0.70 0.68

SURS ‐ Total US EquitySeptember 30, 2017

(2.0) (1.5) (1.0) (0.5)

‐ 0.5 1.0 1.5 2.0 2.5

Dec‐09

Mar‐10

Jun‐10

Sep‐10

Dec‐10

Mar‐11

Jun‐11

Sep‐11

Dec‐11

Mar‐12

Jun‐12

Sep‐12

Dec‐12

Mar‐13

Jun‐13

Sep‐13

Dec‐13

Mar‐14

Jun‐14

Sep‐14

Dec‐14

Mar‐15

Jun‐15

Sep‐15

Dec‐15

Mar‐16

Jun‐16

Sep‐16

Dec‐16

Mar‐17

Jun‐17

Sep‐17

Rolling 3‐year Excess Returnvs. Benchmark

3 yr 3 year Alpha ‐

(1.5)

(1.0)

(0.5)

‐

0.5

1.0

1.5

Dec‐11

Feb‐12

Apr‐12

Jun‐12

Aug‐12

Oct‐12

Dec‐12

Feb‐13

Apr‐13

Jun‐13

Aug‐13

Oct‐13

Dec‐13

Feb‐14

Apr‐14

Jun‐14

Aug‐14

Oct‐14

Dec‐14

Feb‐15

Apr‐15

Jun‐15

Aug‐15

Oct‐15

Dec‐15

Feb‐16

Apr‐16

Jun‐16

Aug‐16

Oct‐16

Dec‐16

Feb‐17

Apr‐17

Jun‐17

Aug‐17



Exhibit 18

eVestment All US Equity Universe Information as of September 30, 2017

Excess Return - using Dow Jones US Total MarketPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 3.10 1.55 1.24 0.87Median 0.25 -0.12 0.05 -0.1675th Percentile -2.58 -1.79 -1.34 -1.40Observations 3,385 3,262 3,042 2,822

Annualized Alpha - using Dow Jones US Total MarketPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 1.89 1.68 1.04 0.77Median -2.69 0.12 -0.05 -0.5775th Percentile -8.16 -1.60 -1.51 -2.14Observations 3,385 3,262 3,042 2,822

Sharpe Ratio - using Citigroup 3-Month T-Bill Percentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 2.86 1.04 1.41 1.24Median 2.12 0.89 1.25 1.0875th Percentile 1.56 0.73 1.06 0.93Observations 3,385 3,262 3,042 2,822

Treynor Ratio - using Dow Jones US Total Market and Citigroup 3-Month T-BillPercentiles 1 Year 3 Years 5 Years 7 Years


Sortino Ratio - using Citigroup 3-Month T-BillPercentiles 1 Year 3 Years 5 Years 7 Years


Tracking Error - using Dow Jones US Total MarketPercentiles 1 Year 3 Years 5 Years 7 Years


Information Ratio - using Dow Jones US Total MarketPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 0.55 0.29 0.26 0.19Median 0.06 -0.03 0.02 -0.0375th Percentile -0.57 -0.42 -0.30 -0.27Observations 3,385 3,262 3,042 2,822

Upside Market Capture - using Dow Jones US Total MarketPercentiles 1 Year 3 Years 5 Years 7 Years


Downside Market Capture - using Dow Jones US Total MarketPercentiles 1 Year 3 Years 5 Years 7 Years


Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Sep 12)

Product Return (Gross) 20.41 10.10 14.32 -- -- 15.29Product Return (Net) 19.68 9.42 13.60 -- -- 14.58Annualized Fees 0.73 0.68 0.72 -- -- 0.71Russell 2000 Growth 20.98 12.17 14.28 -- -- 14.70Excess Returns -1.30 -2.75 -0.68 -- -- -0.12

Annualized Alpha (Risk Adjusted Excess Return) 0.86 -1.42 0.40 -- -- 0.87Active Manager Premium 2.00 2.00 2.00 -- -- 2.00Excess Risk Adjusted Returns -1.14 -3.42 -1.60 -- -- -1.13

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Sep 12)

Standard Deviation 11.87 14.31 14.19 -- -- 14.21Standard Deviation - Benchmark 12.53 15.11 14.70 -- -- 14.60Beta 0.90 0.91 0.93 -- -- 0.93R-Squared 0.90 0.91 0.92 -- -- 0.91

Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Sep 12)

Sharpe Ratio 1.60 0.64 0.94 -- -- 1.01Treynor Ratio 21.20 10.07 14.48 -- -- 15.46Sortino Ratio 2.94 0.94 1.52 -- -- 1.65Tracking Error 3.97 4.41 4.17 -- -- 4.29Information Ratio -0.33 -0.62 -0.16 -- -- -0.03Upside Market Capture 82.49 85.00 90.87 -- -- 93.12Downside Market Capture 64.18 95.30 91.46 -- -- 91.46

Status Evaluation:

3 yr Alpha 5 yr Alpha AMP 3yr Alpha vs. AMP 5yr Alpha vs. AMP Status

Current Quarter -1.42 0.40 2.00 -3.42 -1.60Prior Quarter -2.11 -- 2.00 -4.11 --

CastleArk Management / Small Cap Growth U.S. EquitySeptember 30, 2017

Enhanced Review

(6.0) (5.0) (4.0) (3.0) (2.0) (1.0)

‐ 1.0 2.0 3.0 4.0


3 yr 3 year Alpha AMP

(1.0)

(0.5)

‐

0.5

1.0

1.5

2.0

2.5



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (May 11)

Product Return (Gross) 22.18 11.11 13.54 -- -- 10.49Product Return (Net) 21.51 10.49 12.89 -- -- 9.87Annualized Fees 0.67 0.62 0.65 -- -- 0.62Russell 2000 20.74 12.18 13.79 -- -- 10.86Excess Returns 0.77 -1.69 -0.90 -- -- -0.99

Annualized Alpha (Risk Adjusted Excess Return) 1.44 -0.25 0.74 -- -- -0.01Active Manager Premium 2.00 2.00 2.00 -- -- 2.00Excess Risk Adjusted Returns -0.56 -2.25 -1.26 -- -- -2.01

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (May 11)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (May 11)

Sharpe Ratio 1.51 0.77 1.01 -- -- 0.65Treynor Ratio 21.78 11.54 14.49 -- -- 10.68Sortino Ratio 5.11 1.43 1.88 -- -- 1.09Tracking Error 2.80 3.70 3.47 -- -- 3.82Information Ratio 0.28 -0.46 -0.26 -- -- -0.26Upside Market Capture 93.71 80.86 83.65 -- -- 81.97Downside Market Capture 77.67 83.87 81.94 -- -- 84.05

Status Evaluation:


Current Quarter -0.25 0.74 2.00 -2.25 -1.26Prior Quarter 0.50 0.86 2.00 -1.50 -1.14

Mesirow Financial / Small Cap U.S. EquitySeptember 30, 2017

Enhanced Review

(3.0)

(2.0)

(1.0)

-

1.0

2.0

3.0

May

-14

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct

-14

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-

16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-

17

May

-17

Jun-

17

Jul-1

7

Aug-

17

Sep-

17

Rolling 3-year Excess Return vs. Benchmark


(2.0) (1.5) (1.0) (0.5)

- 0.5 1.0 1.5 2.0 2.5

May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jun 11)

Product Return (Gross) 22.91 13.24 15.81 -- -- 13.15Product Return (Net) 22.10 12.68 15.35 -- -- 12.75Annualized Fees 0.81 0.56 0.46 -- -- 0.40Russell Midcap 15.32 9.54 14.26 -- -- 11.92Excess Returns 6.78 3.14 1.09 -- -- 0.83

Annualized Alpha (Risk Adjusted Excess Return) 9.18 2.92 0.88 -- -- 0.09Active Manager Premium 1.00 1.00 1.00 -- -- 1.00Excess Risk Adjusted Returns 8.18 1.92 -0.12 -- -- -0.91

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jun 11)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jun 11)

Sharpe Ratio 3.53 1.13 1.39 -- -- 0.91Treynor Ratio 27.25 12.37 15.01 -- -- 11.80Sortino Ratio 18.95 2.00 2.64 -- -- 1.58Tracking Error 2.45 2.97 2.88 -- -- 3.17Information Ratio 2.77 1.06 0.38 -- -- 0.26Upside Market Capture 116.34 107.17 102.21 -- -- 103.65Downside Market Capture 27.48 83.87 94.25 -- -- 99.67

Status Evaluation:


Current Quarter 2.92 0.88 1.00 1.92 -0.12Prior Quarter 2.21 0.55 1.00 1.21 -0.45

EARNEST Partners / Midcap Core U.S. EquitySeptember 30, 2017

Enhanced Review

(5.0) (4.0) (3.0) (2.0) (1.0)

- 1.0 2.0 3.0 4.0

Jun-

14

Jul-1

4

Aug-

14

Sep-

14

Oct

-14

Nov

-14

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-

16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-

17

May

-17

Jun-

17

Jul-1

7

Aug-

17

Sep-

17



(2.0)

(1.5)

(1.0)

(0.5)

-

0.5

1.0

1.5

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Apr-05)

Product Return (Gross) 14.05 8.70 14.95 14.04 8.23 8.96Product Return (Net) 13.79 8.24 14.39 13.56 7.73 8.51Annualized Fees 0.26 0.46 0.56 0.48 0.50 0.45Russell Midcap Value 13.37 9.19 14.33 13.76 7.85 9.18Excess Returns 0.42 -0.95 0.06 -0.20 -0.12 -0.67

Annualized Alpha (Risk Adjusted Excess Return) -0.44 -1.26 -0.58 -1.00 0.27 -0.13Active Manager Premium 1.00 1.00 1.00 1.00 1.00 1.00Excess Risk Adjusted Returns -1.44 -2.26 -1.58 -2.00 -0.73 -1.13

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (incep date)

Standard Deviation 8.95 11.83 11.61 13.48 17.82 16.39Standard Deviation - Benchmark 8.12 10.49 10.39 12.15 18.04 16.59Beta 1.07 1.06 1.05 1.07 0.95 0.95R-Squared 0.94 0.88 0.89 0.93 0.93 0.92

Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (incep date)

Sharpe Ratio 1.47 0.67 1.22 0.99 0.41 0.45Treynor Ratio 12.31 7.53 13.46 12.50 7.68 7.73Sortino Ratio 3.98 1.17 2.31 1.74 0.60 0.66Tracking Error 2.26 4.18 3.86 3.57 4.82 4.79Information Ratio 0.19 -0.23 0.01 -0.06 -0.02 -0.14Upside Market Capture 101.72 89.49 99.51 101.01 96.26 93.92Downside Market Capture 98.24 92.35 98.50 103.07 97.17 96.83

Status Evaluation:

3yr Alpha 5yr Alpha AMP 3yr Alpha vs AMP

5yr Alpha vs AMP

Status

Current Quarter -1.26 -0.58 1.00 -2.26 -1.58Prior Quarter -0.99 -0.57 1.00 -1.99 -1.57

Channing Capital / Midcap ValueSeptember 30, 2017

Enhanced Review

(8.0)

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

Mar

-08

Jun-

08

Sep-

08

Dec-

08

Mar

-09

Jun-

09

Sep-

09

Dec-

09

Mar

-10

Jun-

10

Sep-

10

Dec-

10

Mar

-11

Jun-

11

Sep-

11

Dec-

11

Mar

-12

Jun-

12

Sep-

12

Dec-

12

Mar

-13

Jun-

13

Sep-

13

Dec-

13

Mar

-14

Jun-

14

Sep-

14

Dec-

14

Mar

-15

Jun-

15

Sep-

15

Dec-

15

Mar

-16

Jun-

16

Sep-

16

Dec-

16

Mar

-17

Jun-

17

Sep-

17


3 yr 3 year Alpha 1.00

(5.0) (4.0) (3.0) (2.0) (1.0)

- 1.0 2.0 3.0

Mar

-10

May

-10

Jul-1

0Se

p-10

Nov

-10

Jan-

11M

ar-1

1M

ay-1

1Ju

l-11

Sep-

11N

ov-1

1Ja

n-12

Mar

-12

May

-12

Jul-1

2Se

p-12

Nov

-12

Jan-

13M

ar-1

3M

ay-1

3Ju

l-13

Sep-

13N

ov-1

3Ja

n-14

Mar

-14

May

-14

Jul-1

4Se

p-14

Nov

-14

Jan-

15M

ar-1

5M

ay-1

5Ju

l-15

Sep-

15N

ov-1

5Ja

n-16

Mar

-16

May

-16

Jul-1

6Se

p-16

Nov

-16

Jan-

17M

ar-1

7M

ay-1

7Ju

l-17

Sep-

17



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Apr 08)

Product Return (Gross) 20.44 12.06 15.00 15.04 -- 10.19Product Return (Net) 20.14 11.74 14.67 14.71 -- 9.87Annualized Fees 0.30 0.32 0.33 0.33 -- 0.32S&P 500 18.61 10.81 14.22 14.38 -- 9.36Excess Returns 1.53 0.93 0.45 0.33 -- 0.51

Annualized Alpha (Risk Adjusted Excess Return) 3.69 0.73 0.35 0.12 -- 0.46Active Manager Premium 0.75 0.75 0.75 0.75 -- 0.75Excess Risk Adjusted Returns 2.94 -0.02 -0.40 -0.63 -- -0.29

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Apr 08)

Standard Deviation 4.87 10.25 9.64 11.10 -- 15.28Standard Deviation - Benchmark 5.46 10.07 9.55 10.90 -- 15.22Beta 0.86 1.01 1.00 1.01 -- 1.00R-Squared 0.94 0.99 0.99 0.99 -- 0.99

Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Apr 08)

Sharpe Ratio 4.01 1.12 1.50 1.31 -- 0.63Treynor Ratio 22.56 11.32 14.42 14.35 -- 9.60Sortino Ratio 13.55 2.07 2.95 2.43 -- 0.92Tracking Error 1.40 1.14 1.04 1.00 -- 1.11Information Ratio 1.09 0.81 0.42 0.33 -- 0.46Upside Market Capture 105.11 104.43 101.71 101.96 -- 102.03Downside Market Capture 79.27 98.72 99.05 100.80 -- 99.79

Status Evaluation:

3 yr Alpha 5 yr Alpha AMP 3yr Alpha vs. AMP 5yr Alpha vs. AMP Manager Status

Current Quarter 0.73 0.35 0.75 -0.02 -0.40Prior Quarter 0.53 0.36 0.75 -0.22 -0.39

T. Rowe Price Structured Research Strategy / Structured Active U.S. EquitySeptember 30, 2017

Enhanced Review

(1.0) (0.8) (0.6) (0.4) (0.2)

‐ 0.2 0.4 0.6 0.8 1.0 1.2

Mar‐11

May‐11

Jul‐1

1

Sep‐11

Nov

‐11

Jan‐12

Mar‐12

May‐12

Jul‐1

2

Sep‐12

Nov

‐12

Jan‐13

Mar‐13

May‐13

Jul‐1

3

Sep‐13

Nov

‐13

Jan‐14

Mar‐14

May‐14

Jul‐1

4

Sep‐14

Nov

‐14

Jan‐15

Mar‐15

May‐15

Jul‐1

5

Sep‐15

Nov

‐15

Jan‐16

Mar‐16

May‐16

Jul‐1

6

Sep‐16

Nov

‐16

Jan‐17

Mar‐17

May‐17

Jul‐1

7

Sep‐17



(0.6) (0.4) (0.2)

‐ 0.2 0.4 0.6 0.8 1.0



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jan 08)

Product Return (Gross) 21.59 11.93 15.39 15.34 -- 8.27Product Return (Net) 21.40 11.75 15.20 15.15 -- 8.06Annualized Fees 0.19 0.18 0.19 0.19 -- 0.21S&P 500 18.61 10.81 14.22 14.38 -- 8.01Excess Returns 2.79 0.94 0.98 0.77 -- 0.05

Annualized Alpha (Risk Adjusted Excess Return) -0.02 0.96 0.95 0.59 -- 0.13Active Manager Premium 0.75 0.75 0.75 0.75 -- 0.75Excess Risk Adjusted Returns -0.77 0.21 0.20 -0.16 -- -0.62

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jan 08)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jan 08)


Status Evaluation:


Current Quarter 0.96 0.95 0.75 0.21 0.20Prior Quarter 0.75 0.76 0.75 0.00 0.01

Piedmont Investment Advisors / Large Cap Structured Active U.S. EquitySeptember 30, 2017

Good Standing

(2.0)

(1.5)

(1.0)

(0.5)

-

0.5

1.0

1.5

2.0

2.5

Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17



(1.0) (0.8) (0.6) (0.4) (0.2)

- 0.2 0.4 0.6 0.8 1.0 1.2



Exhibit 18


Total Non-US Equity 20.54 5.71 7.92 6.31 1.44MSCI ACWI ex US 19.61 4.70 6.97 5.25 1.28Excess Returns 0.93 1.01 0.95 1.06 0.16

Annualized Alpha (Risk Adjusted Excess Return) -0.29 1.08 1.04 1.10 0.16Active Manager Premium 0.00 0.00 0.00 0.00 0.00Excess Risk Adjusted Returns -0.29 1.08 1.04 1.10 0.16




Sharpe Ratio 2.82 0.45 0.68 0.44 0.06Treynor Ratio 18.77 5.58 7.92 6.27 1.06Sortino Ratio 6.48 0.74 1.15 0.67 0.07Tracking Error 0.64 1.12 0.98 0.96 1.29Information Ratio 1.45 0.89 0.97 1.11 0.13Upside Market Capture 106.53 99.66 100.59 100.64 97.03Downside Market Capture 110.81 93.92 94.62 95.47 97.55


Alpha 0.98 0.88 0.40 0.64 0.91Tracking Error 1.10 1.17 1.18 1.16 1.14

SURS ‐ Total Non‐US EquitySeptember 30, 2017

(3.0) (2.5) (2.0) (1.5) (1.0) (0.5)

‐ 0.5 1.0 1.5 2.0 2.5

Dec‐09

Mar‐10

Jun‐10

Sep‐10

Dec‐10

Mar‐11

Jun‐11

Sep‐11

Dec‐11

Mar‐12

Jun‐12

Sep‐12

Dec‐12

Mar‐13

Jun‐13

Sep‐13

Dec‐13

Mar‐14

Jun‐14

Sep‐14

Dec‐14

Mar‐15

Jun‐15

Sep‐15

Dec‐15

Mar‐16

Jun‐16

Sep‐16

Dec‐16

Mar‐17

Jun‐17

Sep‐17



(1.5)

(1.0)

(0.5)

‐

0.5

1.0

1.5

2.0



Exhibit 18

eVestment All ACWI ex US Equity Universe Information as of September 30, 2017

Excess Return - using ACWI ex USPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 4.05 4.59 3.94 3.59Median 1.05 2.39 2.43 2.2575th Percentile -1.85 0.76 1.06 1.07Observations 343 311 274 232

Annualized Alpha - using ACWI ex USPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 2.74 4.92 4.29 3.87Median -0.94 2.86 2.63 2.4675th Percentile -5.61 0.95 1.31 1.04Observations 343 311 274 232


25th Percentile 3.03 0.74 0.93 0.62Median 2.50 0.58 0.78 0.5275th Percentile 1.95 0.42 0.65 0.42Observations 343 311 274 232

Treynor Ratio - using ACWI ex US and Citigroup 3-Month T-BillPercentiles 1 Year 3 Years 5 Years 7 Years




Tracking Error - using ACWI ex USPercentiles 1 Year 3 Years 5 Years 7 Years


Information Ratio - using ACWI ex USPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 1.24 1.01 0.97 0.90Median 0.37 0.67 0.66 0.5975th Percentile -0.52 0.26 0.29 0.31Observations 343 311 274 232

Upside Market Capture - using ACWI ex USPercentiles 1 Year 3 Years 5 Years 7 Years


Downside Market Capture - using ACWI ex USPercentiles 1 Year 3 Years 5 Years 7 Years


Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jul 08)

Product Return (Gross) 12.54 5.21 8.16 6.45 -- 4.63Product Return (Net) 12.22 4.92 7.81 6.06 -- 4.18Annualized Fees 0.32 0.29 0.35 0.39 -- 0.45Bench 19.61 4.70 6.97 5.25 -- 2.63Excess Returns -7.39 0.22 0.84 0.81 -- 1.55

Annualized Alpha (Risk Adjusted Excess Return) -8.78 0.94 1.60 1.30 -- 1.70Active Manager Premium 2.00 2.00 2.00 2.00 -- 2.00Excess Risk Adjusted Returns -10.78 -1.06 -0.40 -0.70 -- -0.30

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jul 08)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jul 08)

Sharpe Ratio 1.39 0.42 0.71 0.45 -- 0.22Treynor Ratio 10.03 5.55 8.67 6.59 -- 4.24Sortino Ratio 2.22 0.68 1.17 0.65 -- 0.29Tracking Error 3.48 4.32 3.76 4.05 -- 4.74Information Ratio -2.12 0.05 0.22 0.20 -- 0.33Upside Market Capture 86.08 81.10 91.00 89.64 -- 90.64Downside Market Capture 177.45 79.60 84.11 86.30 -- 88.08

Status Evaluation:

3 yr Alpha 5 yr Alpha AMP 3yr Alpha vs. AMP 5yr Alpha vs. AMP Manager status

Current Quarter 0.94 1.60 2.00 -1.06 -0.40Prior Quarter 1.09 2.26 2.00 -0.91 0.26

Ativo / ACWI ex USSeptember 30, 2017

Enhanced Review

(1.0)

‐

1.0

2.0

3.0

4.0

5.0

Jun‐11

Aug‐11

Oct‐11

Dec‐11

Feb‐12

Apr‐12

Jun‐12

Aug‐12

Oct‐12

Dec‐12

Feb‐13

Apr‐13

Jun‐13

Aug‐13

Oct‐13

Dec‐13

Feb‐14

Apr‐14

Jun‐14

Aug‐14

Oct‐14

Dec‐14

Feb‐15

Apr‐15

Jun‐15

Aug‐15

Oct‐15

Dec‐15

Feb‐16

Apr‐16

Jun‐16

Aug‐16

Oct‐16

Dec‐16

Feb‐17

Apr‐17

Jun‐17

Aug‐17



‐

1.0

2.0

3.0

4.0

5.0

6.0



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Dec 11)

Product Return (Gross) 20.07 5.69 7.98 -- -- 8.68Product Return (Net) 19.73 5.27 7.58 -- -- 8.31Annualized Fees 0.34 0.42 0.40 -- -- 0.37MSCI ACWI ex-US 19.61 4.70 6.97 -- -- 7.55Excess Returns 0.12 0.57 0.61 -- -- 0.76

Annualized Alpha (Risk Adjusted Excess Return) -2.07 0.73 0.81 -- -- 0.92Active Manager Premium 1.50 1.50 1.50 -- -- 1.50Excess Risk Adjusted Returns -3.57 -0.77 -0.69 -- -- -0.58

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Dec 11)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Dec 11)


Status Evaluation:



Fidelity Select International Plus / Non‐U.S. EquitySeptember 30, 2017

Enhanced Review

(0.5)

‐

0.5

1.0

1.5

2.0

2.5

Dec‐14

Jan‐15

Feb‐15

Mar‐15

Apr‐15

May‐15

Jun‐15

Jul‐1

5

Aug‐15

Sep‐15

Oct‐15

Nov

‐15

Dec‐15

Jan‐16

Feb‐16

Mar‐16

Apr‐16

May‐16

Jun‐16

Jul‐1

6

Aug‐16

Sep‐16

Oct‐16

Nov

‐16

Dec‐16

Jan‐17

Feb‐17

Mar‐17

Apr‐17

May‐17

Jun‐17

Jul‐1

7

Aug‐17

Sep‐17



(0.2)

‐

0.2

0.4

0.6

0.8

1.0

1.2

1.4 1.6

Dec‐16 Jan‐17 Feb‐17 Mar‐17 Apr‐17 May‐17 Jun‐17 Jul‐17 Aug‐17 Sep‐17



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Dec-11)

Product Return (Gross) 26.73 8.98 11.36 -- -- 11.89Product Return (Net) 26.19 8.21 10.44 -- -- 11.05Annualized Fee 0.54 0.77 0.92 -- -- 0.84MSCI ACWI ex-US 19.61 4.70 6.97 -- -- 7.55Excess Returns 6.58 3.51 3.47 -- -- 3.50

Annualized Alpha (Risk Adjusted Excess Return) 3.53 3.52 3.47 -- -- 3.58Active Manager Premium 2.00 2.00 2.00 -- -- 2.00Excess Risk Adjusted Returns 1.53 1.52 1.47 -- -- 1.58





Status Evaluation:

3 yr Alpha 5 yr Alpha AMP 3yr Alpha vs. AMP

5yr Alpha vs. AMP

Status


GlobeFlex Capital/ Non-U.S. EquitySeptember 30, 2017

Good Standing

- 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

Dec-

14

Jan-

15

Feb-

15

Mar

-15

Apr-

15

May

-15

Jun-

15

Jul-1

5

Aug-

15

Sep-

15

Oct

-15

Nov

-15

Dec-

15

Jan-

16

Feb-

16

Mar

-16

Apr-

16

May

-16

Jun-

16

Jul-1

6

Aug-

16

Sep-

16

Oct

-16

Nov

-16

Dec-

16

Jan-

17

Feb-

17

Mar

-17

Apr-

17

May

-17

Jun-

17

Jul-1

7

Aug-

17

Sep-

17



-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (May-08)

Product Return (Gross) 22.53 6.17 9.03 7.13 -- 4.01Product Return (Net) 21.95 5.66 8.52 6.64 -- 3.50Annualized Fee 0.58 0.51 0.51 0.49 -- 0.51MSCI EAFE 19.10 5.04 8.38 6.38 -- 2.05Excess Returns 2.85 0.62 0.14 0.26 -- 1.45

Annualized Alpha (Risk Adjusted Excess Return) 3.84 0.69 0.44 0.42 -- 1.47Active Manager Premium 0.00 0.00 0.00 0.00 -- 0.00Excess Risk Adjusted Returns 3.84 0.69 0.44 0.42 -- 1.47





Status Evaluation:


5yr Alpha vs AMP

Watchlist


Progress Investments / Non-US EquitySeptember 30, 2017

Good Standing

(2.0)

(1.0)

-

1.0

2.0

3.0

4.0

5.0

Apr-

11

Jun-

11

Aug-

11

Oct

-11

Dec-

11

Feb-

12

Apr-

12

Jun-

12

Aug-

12

Oct

-12

Dec-

12

Feb-

13

Apr-

13

Jun-

13

Aug-

13

Oct

-13

Dec-

13

Feb-

14

Apr-

14

Jun-

14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-15

Dec-

15

Feb-

16

Apr-

16

Jun-

16

Aug-

16

Oct

-16

Dec-

16

Feb-

17

Apr-

17

Jun-

17

Aug-

17


3 yr 3 year Alpha -

(0.5)

-

0.5

1.0

1.5

2.0

2.5

3.0


5 yr 5 year Alpha -

Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Sep-08)

Product Return Gross 20.31 7.67 11.90 10.79 -- 7.74Product Return Net 19.91 7.33 11.46 10.31 -- 7.23Annualized Fee 0.40 0.34 0.44 0.48 -- 0.51MSCI EAFE 19.10 5.04 8.38 6.38 -- 3.82Excess Returns 0.81 2.29 3.08 3.93 -- 3.41

Annualized Alpha (Risk Adjusted Excess Return) 0.00 2.59 3.41 4.07 -- 3.41Active Manager Premium 2.00 2.00 2.00 2.00 -- 2.00Excess Risk Adjusted Returns -2.00 0.59 1.41 2.07 -- 1.41





Status Evaluation:


5yr Alpha vs AMP

Status


Strategic Global Advisors / Non-U.S. EquitySeptember 30, 2017

Good Standing

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Aug-

11

Oct

-11

Dec-

11

Feb-

12

Apr-

12

Jun-

12

Aug-

12

Oct

-12

Dec-

12

Feb-

13

Apr-

13

Jun-

13

Aug-

13

Oct

-13

Dec-

13

Feb-

14

Apr-

14

Jun-

14

Aug-

14

Oct

-14

Dec-

14

Feb-

15

Apr-

15

Jun-

15

Aug-

15

Oct

-15

Dec-

15

Feb-

16

Apr-

16

Jun-

16

Aug-

16

Oct

-16

Dec-

16

Feb-

17

Apr-

17

Jun-

17

Aug-

17



-

1.0

2.0

3.0

4.0

5.0

6.0



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Nov 03)

Product Return (Gross) 24.10 7.85 11.50 8.96 2.91 8.09Product Return (Net) 23.14 7.03 10.89 8.43 2.51 7.71Annualized Fees 0.96 0.82 0.61 0.53 0.40 0.38MSCI EAFE 19.10 5.04 8.38 6.38 1.34 6.67Excess Returns 4.04 1.99 2.51 2.05 1.17 1.04

Annualized Alpha (Risk Adjusted Excess Return) 2.69 1.94 2.39 1.96 1.17 0.99Active Manager Premium 1.50 1.50 1.50 1.50 1.50 1.50Excess Risk Adjusted Returns 1.19 0.44 0.89 0.46 -0.33 -0.51

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Nov 03)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Nov 03)

Sharpe Ratio 2.97 0.54 0.90 0.58 0.11 0.39Treynor Ratio 21.58 6.76 10.76 8.28 2.08 6.49Sortino Ratio 8.60 0.87 1.62 0.89 0.15 0.55Tracking Error 1.72 1.99 1.99 1.90 1.92 1.71Information Ratio 2.34 1.00 1.26 1.08 0.61 0.61Upside Market Capture 111.46 103.92 105.57 104.61 103.45 103.02Downside Market Capture 72.51 92.59 90.71 94.63 98.49 98.49

Status Evaluation:



BTC Intl Alpha Tilts ‐ Non US Structured ActiveSeptember 30, 2017

Good Standing

(2.0)

(1.0)

‐

1.0

2.0

3.0

4.0

Dec‐06

Mar‐07

Jun‐07

Sep‐07

Dec‐07

Mar‐08

Jun‐08

Sep‐08

Dec‐08

Mar‐09

Jun‐09

Sep‐09

Dec‐09

Mar‐10

Jun‐10

Sep‐10

Dec‐10

Mar‐11

Jun‐11

Sep‐11

Dec‐11

Mar‐12

Jun‐12

Sep‐12

Dec‐12

Mar‐13

Jun‐13

Sep‐13

Dec‐13

Mar‐14

Jun‐14

Sep‐14

Dec‐14

Mar‐15

Jun‐15

Sep‐15

Dec‐15

Mar‐16

Jun‐16

Sep‐16

Dec‐16

Mar‐17

Jun‐17

Sep‐17



(1.0) (0.5)

‐ 0.5 1.0 1.5 2.0 2.5 3.0

Sep‐08

Dec‐08

Mar‐09

Jun‐09

Sep‐09

Dec‐09

Mar‐10

Jun‐10

Sep‐10

Dec‐10

Mar‐11

Jun‐11

Sep‐11

Dec‐11

Mar‐12

Jun‐12

Sep‐12

Dec‐12

Mar‐13

Jun‐13

Sep‐13

Dec‐13

Mar‐14

Jun‐14

Sep‐14

Dec‐14

Mar‐15

Jun‐15

Sep‐15

Dec‐15

Mar‐16

Jun‐16

Sep‐16

Dec‐16

Mar‐17

Jun‐17

Sep‐17



Exhibit 18


Total Global Equity 19.32 9.28 11.42 9.91 4.54MSCI ACWI 18.65 7.43 10.20 9.17 3.88Excess Returns 0.67 1.85 1.22 0.74 0.66

Annualized Alpha (Risk Adjusted Excess Return) -1.77 1.71 1.26 0.87 0.66Active Manager Premium 0.00 0.00 0.00 0.00 0.00Excess Risk Adjusted Returns -1.77 1.71 1.26 0.87 0.66




Sharpe Ratio 3.42 0.84 1.13 0.81 0.24Treynor Ratio 16.41 8.95 11.38 9.95 4.15Sortino Ratio 8.43 1.44 2.05 1.30 0.34Tracking Error 1.76 1.64 1.70 1.75 1.77Information Ratio 0.38 1.13 0.72 0.42 0.37Upside Market Capture 106.34 109.83 103.90 100.64 101.42Downside Market Capture 125.69 97.99 95.33 95.98 98.59


Alpha 1.57 1.80 1.20 1.35 1.88Tracking Error 1.74 1.78 1.81 1.75 1.63

SURS ‐ Total Global EquitySeptember 30, 2017

(3.0)

(2.0)

(1.0)

‐

1.0

2.0

3.0

Dec‐09

Mar‐10

Jun‐10

Sep‐10

Dec‐10

Mar‐11

Jun‐11

Sep‐11

Dec‐11

Mar‐12

Jun‐12

Sep‐12

Dec‐12

Mar‐13

Jun‐13

Sep‐13

Dec‐13

Mar‐14

Jun‐14

Sep‐14

Dec‐14

Mar‐15

Jun‐15

Sep‐15

Dec‐15

Mar‐16

Jun‐16

Sep‐16

Dec‐16

Mar‐17

Jun‐17

Sep‐17



(2.0)

(1.5)

(1.0)

(0.5)

‐

0.5

1.0

1.5

Dec‐11

Feb‐12

Apr‐12

Jun‐12

Aug‐12

Oct‐12

Dec‐12

Feb‐13

Apr‐13

Jun‐13

Aug‐13

Oct‐13

Dec‐13

Feb‐14

Apr‐14

Jun‐14

Aug‐14

Oct‐14

Dec‐14

Feb‐15

Apr‐15

Jun‐15

Aug‐15

Oct‐15

Dec‐15

Feb‐16

Apr‐16

Jun‐16

Aug‐16

Oct‐16

Dec‐16

Feb‐17

Apr‐17

Jun‐17

Aug‐17



Exhibit 18

eVestment All Global Equity Universe Information as of September 30, 2017

Excess Return - using ACWIPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 2.90 2.56 2.61 2.47Median 0.06 0.80 1.03 1.2775th Percentile -4.50 -0.94 -0.80 -0.50Observations 1,329 1,226 1,038 844

Annualized Alpha - using ACWIPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 2.65 3.34 2.77 2.87Median -1.45 1.38 1.40 1.4875th Percentile -7.42 -0.25 -0.05 -0.27Observations 1,329 1,226 1,038 844


25th Percentile 3.73 0.91 1.21 0.94Median 2.83 0.75 1.08 0.8175th Percentile 1.94 0.55 0.86 0.63Observations 1,329 1,226 1,038 844

Treynor Ratio - using ACWI and Citigroup 3-Month T-BillPercentiles 1 Year 3 Years 5 Years 7 Years




Tracking Error - using ACWIPercentiles 1 Year 3 Years 5 Years 7 Years


Information Ratio - using ACWIPercentiles 1 Year 3 Years 5 Years 7 Years

25th Percentile 0.84 0.61 0.73 0.69Median 0.02 0.22 0.30 0.3175th Percentile -1.10 -0.16 -0.16 -0.09Observations 1,329 1,226 1,038 844

Upside Market Capture - using ACWIPercentiles 1 Year 3 Years 5 Years 7 Years


Downside Market Capture - using ACWIPercentiles 1 Year 3 Years 5 Years 7 Years


Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Dec 11)

Product Return (Gross) 17.24 7.19 9.62 -- -- 9.96Product Return (Net) 16.97 6.96 9.39 -- -- 9.73Annualized Fees 0.27 0.23 0.23 -- -- 0.23MSCI ACWI 18.65 7.43 10.20 -- -- 10.92Excess Returns -1.68 -0.47 -0.81 -- -- -1.19

Annualized Alpha (Risk Adjusted Excess Return) -2.92 0.24 0.02 -- -- -0.25Active Manager Premium 2.00 2.00 2.00 -- -- 2.00Excess Risk Adjusted Returns -4.92 -1.76 -1.98 -- -- -2.25




Sharpe Ratio 3.13 0.67 0.96 -- -- 0.94Treynor Ratio 14.99 7.39 9.97 -- -- 10.39Sortino Ratio 7.02 1.15 1.68 -- -- 1.53Tracking Error 1.60 2.85 2.83 -- -- 2.92Information Ratio -1.05 -0.17 -0.29 -- -- -0.41Upside Market Capture 95.27 92.49 94.18 -- -- 92.72Downside Market Capture 131.17 93.91 97.89 -- -- 98.33

Status Evaluation:


Current Quarter 0.24 0.02 2.00 -1.76 -1.98Prior Quarter -0.36 -0.17 2.00 -2.36 -2.17

Mondrian / Global EquitySeptember 30, 2017

Enhanced Review

(4.0)

(3.0)

(2.0)

(1.0)

‐

1.0

2.0

3.0

Dec‐14

Jan‐15

Feb‐15

Mar‐15

Apr‐15

May‐15

Jun‐15

Jul‐1

5

Aug‐15

Sep‐15

Oct‐15

Nov

‐15

Dec‐15

Jan‐16

Feb‐16

Mar‐16

Apr‐16

May‐16

Jun‐16

Jul‐1

6

Aug‐16

Sep‐16

Oct‐16

Nov

‐16

Dec‐16

Jan‐17

Feb‐17

Mar‐17

Apr‐17

May‐17

Jun‐17

Jul‐1

7

Aug‐17

Sep‐17



(1.5)

(1.0)

(0.5)

‐

0.5

1.0

1.5

2.0

2.5

Dec‐16 Jan‐17 Feb‐17 Mar‐17 Apr‐17 May‐17 Jun‐17 Jul‐17 Aug‐17 Sep‐17



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jun 02)

Product Return (Gross) 19.96 9.79 13.12 11.48 5.53 8.33Product Return (Net) 19.31 9.04 12.43 10.87 5.01 7.82Annualized Fees 0.65 0.75 0.69 0.61 0.52 0.51Custom / MSCI ACWI 18.65 7.43 10.20 9.17 4.11 6.87Excess Returns 0.66 1.61 2.23 1.70 0.90 0.95

Annualized Alpha (Risk Adjusted Excess Return) -1.55 1.17 1.56 1.22 0.97 0.51Active Manager Premium 2.00 2.00 2.00 2.00 2.00 2.00Excess Risk Adjusted Returns -3.55 -0.83 -0.44 -0.78 -1.03 -1.49

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jun 02)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jun 02)


Status Evaluation:



Wellington Global Research Equity / Global EquitySeptember 30, 2017

Enhanced Review

(3.0) (2.0) (1.0)

- 1.0 2.0 3.0 4.0 5.0



(2.0) (1.5) (1.0) (0.5)

- 0.5 1.0 1.5 2.0 2.5 3.0 3.5

Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Nov 08)

Product Return (Gross) 22.50 13.61 16.56 13.20 -- 14.24Product Return (Net) 21.97 13.11 16.03 12.68 -- 13.75Annualized Fees 0.53 0.50 0.53 0.52 -- 0.49ACWI 18.65 7.43 10.20 9.17 -- 10.80Excess Returns 3.32 5.68 5.83 3.51 -- 2.95

Annualized Alpha (Risk Adjusted Excess Return) -0.68 4.52 4.49 2.27 -- 2.15Active Manager Premium 2.00 2.00 2.00 2.00 -- 2.00Excess Risk Adjusted Returns -2.68 2.52 2.49 0.27 -- 0.15

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Nov 08)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Nov 08)


Status Evaluation:



T. Rowe Price Global Focused Growth / Global EquitySeptember 30, 2017

Good Standing

(4.0)

(2.0)

‐

2.0

4.0

6.0

8.0

10.0

Oct‐11

Dec‐11

Feb‐12

Apr‐12

Jun‐12

Aug‐12

Oct‐12

Dec‐12

Feb‐13

Apr‐13

Jun‐13

Aug‐13

Oct‐13

Dec‐13

Feb‐14

Apr‐14

Jun‐14

Aug‐14

Oct‐14

Dec‐14

Feb‐15

Apr‐15

Jun‐15

Aug‐15

Oct‐15

Dec‐15

Feb‐16

Apr‐16

Jun‐16

Aug‐16

Oct‐16

Dec‐16

Feb‐17

Apr‐17

Jun‐17

Aug‐17



(1.0) ‐

1.0 2.0 3.0 4.0 5.0 6.0 7.0



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (06/86)

SURS Total Core Fixed Income (Net) 1.28 2.69 2.14 3.11 4.86 7.06Bloomberg Barclays Agg 0.07 2.71 2.06 2.95 4.27 6.44Excess Returns 1.21 -0.02 0.08 0.16 0.59 0.62

Annualized Alpha (Risk Adjusted Excess Return) 1.22 0.55 0.37 0.61 0.95 0.86Active Manager Premium 0.00 0.00 0.00 0.00 0.00 0.00Excess Risk Adjusted Returns 1.22 0.55 0.37 0.61 0.95 0.86

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (06/86)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (06/86)

Sharpe Ratio 0.24 1.03 0.78 1.18 1.32 0.98Treynor Ratio 0.77 3.06 2.28 3.50 4.88 3.91Sortino Ratio 0.31 1.73 1.18 1.99 2.40 1.66Tracking Error 0.60 0.87 0.75 0.99 1.62 1.06Information Ratio 2.02 -0.03 0.10 0.16 0.36 0.58Upside Market Capture 99.58 84.65 90.72 95.46 105.43 103.54Downside Market Capture 68.82 70.60 82.42 84.28 91.28 89.84

Three Year Rolling Performance Statistics as of:Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17

Alpha 0.29 0.32 2.06 1.47 0.38 1.84Tracking Error 0.83 0.87 1.07 0.73 0.85 0.60

SURS ‐ Total Core Fixed IncomeSeptember 30, 2017

Exhibit 18

eVestment US Core Fixed Income Universe Information as of September 30, 2017



Treynor Ratio - using Bloomberg Barclays US Aggregate and Citigroup 3-Month T-BillPercentiles 1 Year 3 Years 5 Years 7 Years




Tracking Error - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Information Ratio - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Upside Market Capture - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Downside Market Capture - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Excess Return - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Annualized Alpha - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Exhibit 18



Treynor Ratio - using Bloomberg Barclays US Aggregate and Citigroup 3-Month T-BiPercentiles 1 Year 3 Years 5 Years 7 Years




Tracking Error - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Information Ratio - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Upside Market Capture - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Downside Market Capture - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Excess Return - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


Annualized Alpha - using Bloomberg Barclays US AggregatePercentiles 1 Year 3 Years 5 Years 7 Years


eVestment US Core Plus Fixed Income Universe Information as of September 30, 2017

Exhibit 18


Product Return (Gross) 0.32 3.25 3.25 4.32 -- 5.92Product Return (Net) 0.00 3.03 3.05 4.12 -- 5.73Annualized Fees 0.32 0.22 0.20 0.20 -- 0.19BC Agg 0.07 2.71 2.06 2.95 -- 4.17Excess Returns -0.07 0.32 0.99 1.17 -- 1.56

Annualized Alpha (Risk Adjusted Excess Return) -0.06 0.19 0.96 1.22 -- 1.63Active Manager Premium 0.40 0.40 0.40 0.40 -- 0.40Excess Risk Adjusted Returns -0.46 -0.21 0.56 0.82 -- 1.23




Sharpe Ratio -0.24 0.86 0.93 1.22 -- 1.68Treynor Ratio -0.80 2.62 2.83 4.06 -- 5.72Sortino Ratio -0.30 1.52 1.58 2.23 -- 3.42Tracking Error 0.93 1.14 1.07 1.79 -- 1.87Information Ratio -0.08 0.28 0.92 0.65 -- 0.84Upside Market Capture 77.30 109.63 115.40 121.12 -- 121.41Downside Market Capture 80.10 106.56 91.50 97.57 -- 90.00

Status Evaluation:

3yr Alpha 5yr Alpha AMP 3yr Alpha vs. AMP

5yr Alpha vs. AMP Manager Status

Current Quarter 0.19 0.96 0.40 -0.21 0.56Prior Quarter 0.45 1.42 0.40 0.05 1.02

Garcia Hamilton/Core Fixed IncomeSeptember 30, 2017

Enhanced Review

Exhibit 18


Product Return (Gross) 0.31 2.93 2.36 3.40 5.03 5.15Product Return (Net) 0.16 2.78 2.20 3.23 4.85 4.97Annualized Fees 0.15 0.15 0.16 0.17 0.18 0.18BC Agg 0.07 2.71 2.06 2.95 4.27 4.49Excess Returns 0.09 0.07 0.14 0.28 0.58 0.48

Annualized Alpha (Risk Adjusted Excess Return) 0.08 -0.04 0.04 0.17 0.51 0.42Active Manager Premium 0.40 0.40 0.40 0.40 0.40 0.40Excess Risk Adjusted Returns -0.32 -0.44 -0.36 -0.23 0.11 0.02




Sharpe Ratio -0.15 0.84 0.67 1.06 1.31 1.21Treynor Ratio -0.47 2.40 1.92 2.96 4.39 3.93Sortino Ratio -0.18 1.37 1.03 1.78 2.57 2.31Tracking Error 0.21 0.26 0.31 0.37 0.67 0.63Information Ratio 0.41 0.24 0.43 0.74 0.86 0.76Upside Market Capture 103.82 104.77 105.67 106.49 108.50 107.35Downside Market Capture 101.47 106.88 104.59 102.52 99.44 100.31

Status Evaluation:



Current Quarter -0.04 0.04 0.40 -0.44 -0.36Prior Quarter -0.09 0.08 0.40 -0.49 -0.32

Pugh Capital Management/Core Fixed IncomeSeptember 30, 2017

Enhanced Review

Exhibit 18



Annualized Alpha (Risk Adjusted Excess Return) 0.29 0.35 0.20 0.30 0.17 0.12Active Manager Premium 0.40 0.40 0.40 0.40 0.40 0.40Excess Risk Adjusted Returns -0.11 -0.05 -0.20 -0.10 -0.23 -0.28




Sharpe Ratio -0.10 0.97 0.72 1.08 1.17 1.08Treynor Ratio -0.31 2.79 2.08 3.11 4.03 3.61Sortino Ratio -0.12 1.70 1.16 1.89 1.95 1.78Tracking Error 0.47 0.39 0.51 0.74 1.07 1.00Information Ratio 0.62 0.69 0.40 0.31 0.13 0.09Upside Market Capture 94.68 101.53 103.59 104.18 102.49 102.14Downside Market Capture 87.61 92.64 98.92 99.39 101.10 102.11

Status Evaluation:



Current Quarter 0.35 0.20 0.40 -0.05 -0.20Prior Quarter -0.01 0.20 0.40 -0.41 -0.20

Smith Graham/Core Fixed IncomeSeptember 30, 2017

Enhanced Review

Exhibit 18


Product Return (Gross) 0.92 3.41 2.51 -- -- 3.90Product Return (Net) 0.75 3.23 2.34 -- -- 3.71Annualized Fee 0.17 0.18 0.17 -- -- 0.19BC Agg 0.07 2.71 2.06 -- -- 3.26Excess Returns 0.68 0.52 0.28 -- -- 0.45

Annualized Alpha (Risk Adjusted Excess Return) 0.68 0.66 0.17 -- -- 0.38Active Manager Premium 0.70 0.70 0.70 -- -- 0.70Excess Risk Adjusted Returns -0.02 -0.04 -0.53 -- -- -0.32





Status Evaluation:


5yr Alpha vs AMP

Status


LM/Core Plus Fixed IncomeSeptember 30, 2017

Enhanced Review

-

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17

Rolling 5-year Excess Return vs. Barclays Capital Aggregate Index


(0.6)

(0.4)

(0.2)

-

0.2

0.4

0.6

0.8

1.0

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17



Exhibit 18



Annualized Alpha (Risk Adjusted Excess Return) 1.30 0.57 0.24 0.56 1.45 1.07Active Manager Premium 0.70 0.70 0.70 0.70 0.70 0.70Excess Risk Adjusted Returns 0.60 -0.13 -0.46 -0.14 0.75 0.37





Status Evaluation:



Current Quarter 0.57 0.24 0.70 -0.13 -0.46Prior Quarter -0.02 0.31 0.70 -0.72 -0.39

PIMCO Total Return/Core Plus Fixed IncomeSeptember 30, 2017

Enhanced Review

Exhibit 18



Annualized Alpha (Risk Adjusted Excess Return) 0.62 0.36 0.79 1.61 2.19 2.39Active Manager Premium 0.70 0.70 0.70 0.70 0.70 0.70Excess Risk Adjusted Returns -0.08 -0.34 0.09 0.91 1.49 1.69





Status Evaluation:



Current Quarter 0.36 0.79 0.70 -0.34 0.09Prior Quarter 0.46 1.33 0.70 -0.24 0.63

TCW/Core Plus Fixed IncomeSeptember 30, 2017

Enhanced Review

Exhibit 18

Performance Analysis (Net of fees since Inception Date of May-08)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (05/08)

Product Return (Gross) 1.46 3.33 2.80 3.81 -- 4.95Product Return (Net) 0.99 2.85 2.32 3.33 -- 4.48Annualized Fee 0.47 0.48 0.48 0.48 -- 0.47BC Agg 0.07 2.71 2.06 2.95 -- 4.00Excess Returns 0.92 0.14 0.26 0.38 -- 0.48

Annualized Alpha (Risk Adjusted Excess Return) 0.92 0.27 0.30 0.48 -- 0.36Active Manager Premium 0.00 0.00 0.00 0.00 - 0.00Excess Risk Adjusted Returns 0.92 0.27 0.30 0.48 - 0.36


Standard Deviation 2.96 2.77 2.82 2.74 -- 3.49Standard Deviation - Benchmark 3.15 2.85 2.84 2.77 - 3.30Beta 0.94 0.95 0.97 0.96 -- 1.03R-Squared 0.99 0.96 0.97 0.94 -- 0.94



Watchlist Evaluation:

3yr Alpha 5yr Alpha AMP 3yr Excess vs AMP

5yr Excess vs AMP

Status


Progress/Core Fixed IncomeSeptember 30, 2017

Good Standing

-

0.2

0.4

0.6

0.8

1.0

1.2

Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17



(0.4) (0.2)

- 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6



Exhibit 18

Performance Analysis (Net of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jan 11)

Product Return (Gross) 1.79 3.53 2.96 -- -- 4.26Product Return (Net) 1.61 3.37 2.78 -- -- 4.08Annualized Fees 0.18 0.16 0.18 -- -- 0.18Bloomberg Barclays US Agg 0.07 2.71 2.06 -- -- 3.26Excess Returns 1.54 0.66 0.72 -- -- 0.82

Annualized Alpha (Risk Adjusted Excess Return) 1.54 1.22 0.93 -- -- 1.27Active Manager Premium 0.70 0.70 0.70 -- -- 0.70Excess Risk Adjusted Returns 0.84 0.52 0.23 -- -- 0.57

Risk And RegressionDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jan 11)


Efficiency MeasuresDescription 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Jan 11)


Status Evaluation:



Neuberger Berman / Core Plus Fixed IncomeSeptember 30, 2017

Good Standing

(1.0)

(0.5)

‐

0.5

1.0

1.5

2.0

2.5

Dec‐13

Jan‐14

Feb‐14

Mar‐14

Apr‐14

May‐14

Jun‐14

Jul‐1

4Au

g‐14

Sep‐14

Oct‐14

Nov

‐14

Dec‐14

Jan‐15

Feb‐15

Mar‐15

Apr‐15

May‐15

Jun‐15

Jul‐1

5Au

g‐15

Sep‐15

Oct‐15

Nov

‐15

Dec‐15

Jan‐16

Feb‐16

Mar‐16

Apr‐16

May‐16

Jun‐16

Jul‐1

6Au

g‐16

Sep‐16

Oc t‐16

Nov

‐16

Dec‐16

Jan‐17

Feb‐17

Mar‐17

Apr‐17

May‐17

Jun‐17

Jul‐1

7Au

g‐17

Sep‐17



‐ 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8



Exhibit 18

Performance Analysis (Composite Data)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (10/07)

Product Return (Gross) 7.39 3.52 2.67 3.20 4.22 4.22Product Return (Net) 6.60 2.79 1.88 2.37 3.44 3.44Annualized Fees 0.79 0.73 0.79 0.83 0.78 0.78LIBOR (3 Month) 1.02 0.59 0.47 0.44 0.95 0.95Excess Returns 5.58 2.20 1.41 1.93 2.49 2.49

Annualized Alpha (Risk Adjusted Excess Return) 4.75 -2.04 -1.85 -1.91 2.93 2.93Active Manager Premium 3.00 3.00 3.00 3.00 3.00 3.00Excess Risk Adjusted Returns 1.75 -5.04 -4.85 -4.91 -0.07 -0.07




Sharpe Ratio 4.01 0.82 0.62 0.87 0.94 0.94Treynor Ratio 3.43 0.30 0.21 0.23 5.26 5.26Sortino Ratio 10.35 1.27 0.92 1.34 1.51 1.51Tracking Error 1.48 3.01 2.69 2.53 3.20 3.20Information Ratio 3.76 0.73 0.53 0.76 0.78 0.78Upside Market Capture -- -- -- -- -- --Downside Market Capture -- -- -- -- -- --

Status Evaluation:



Current Quarter 3.00Prior Quarter 3.00SURS Inception Date = May 2013

PIMCO Unconstrained/Absolute Return Fixed IncomeSeptember 30, 2017

Good Standing

Exhibit 18

Performance Analysis (Composite Data Gross of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (Dec 06)

Product Return 7.04 3.04 1.51 3.74 6.02 6.64Custom EMD Benchmark 6.00 4.07 2.66 3.94 5.80 6.19Excess Returns 1.04 -1.03 -1.15 -0.20 0.22 0.45

Annualized Alpha (Risk Adjusted Excess Return) 0.59 -1.04 -1.21 -0.50 -0.39 -0.25Active Manager Premium 0.50 0.50 0.50 0.50 0.50 0.50Excess Risk Adjusted Returns 0.09 -1.54 -1.71 -1.00 -0.89 -0.75




Sharpe Ratio 0.80 0.34 0.16 0.39 0.51 0.55Treynor Ratio 5.97 2.71 1.26 3.28 4.99 5.22Sortino Ratio 1.05 0.51 0.22 0.57 0.72 0.78Tracking Error 1.19 1.45 1.30 1.55 2.37 2.41Information Ratio 0.87 -0.71 -0.89 -0.13 0.09 0.18Upside Market Capture 111.12 97.73 99.28 107.09 109.87 111.87Downside Market Capture 103.93 107.27 109.65 109.56 109.81 110.95

Status Evaluation:


Current Quarter -- -- 0.50 -- --Prior Quarter -- -- 0.50 -- --

BlueBay EM Debt Select ‐ Composite Data, Gross of FeesSeptember 30, 2017

Good Standing

(3.0) (2.0) (1.0)

‐ 1.0 2.0 3.0 4.0 5.0 6.0 7.0

Dec‐09

Feb‐10

Apr‐10

Jun‐10

Aug‐10

Oct‐10

Dec‐10

Feb‐11

Apr‐11

Jun‐11

Aug‐11

Oct‐11

Dec‐11

Feb‐12

Apr‐12

Jun‐12

Aug‐12

Oct‐12

Dec‐12

Feb‐13

Apr‐13

Jun‐13

Aug‐13

Oct‐13

Dec‐13

Feb‐14

Apr‐14

Jun‐14

Aug‐14

Oct‐14

Dec‐14

Feb‐15

Apr‐15

Jun‐15

Aug‐15

Oct‐15

Dec‐15

Feb‐16

Apr‐16

Jun‐16

Aug‐16

Oct‐16

Dec‐16

Feb‐17

Apr‐17

Jun‐17

Aug‐17



(2.0)

(1.0)

‐

1.0

2.0

3.0

4.0

Dec‐11

Feb‐12

Apr‐12

Jun‐12

Aug‐12

Oct‐12

Dec‐12

Feb‐13

Apr‐13

Jun‐13

Aug‐13

Oct‐13

Dec‐13

Feb‐14

Apr‐14

Jun‐14

Aug‐14

Oct‐14

Dec‐14

Feb‐15

Apr‐15

Jun‐15

Aug‐15

Oct‐15

Dec‐15

Feb‐16

Apr‐16

Jun‐16

Aug‐16

Oct‐16

Dec‐16

Feb‐17

Apr‐17

Jun‐17

Aug‐17



Exhibit 18

Performance Analysis (Composite Data Gross of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (01/09)

Product Return (Gross) 9.92 1.19 0.57 2.29 -- 6.22Product Return (Net Composite Not Availiable) -- -- -- -- -- --Annualized Fees -- -- -- -- -- --JPM GBI-EM Global Div Unhedged 7.32 0.26 -0.91 0.67 3.80 5.69Excess Returns 2.60 0.93 1.48 1.62 -- 0.53






Status Evaluation:



Current Quarter - - 0.50 - -Prior Quarter - - 0.50 - -SURS Inception Date = April 2015

Colchester Local Markets Debt Fund ‐ Composite Data, Gross of FeesSeptember 30, 2017

Good Standing

Exhibit 18


Product Return (Gross of Fees) 8.79 -- -- -- -- 6.44Product Return (Net of Fees) 8.29 -- -- -- -- 6.07JPM Corp EM Bond Index - Broad 6.00 -- -- -- -- 6.60Excess Returns 2.29 -- -- -- -- -0.53

Annualized Alpha (Risk Adjusted Excess Return) 0.73 -- -- -- -- -1.35Active Manager Premium 0.00 -- -- -- -- 0.00Excess Risk Adjusted Returns 0.73 -- -- -- -- -1.35


Standard Deviation 3.96 -- -- -- -- 5.44Standard Deviation - Benchmark 3.11 -- -- -- -- 4.56Beta 1.25 -- -- -- -- 1.14R-Squared 0.95 -- -- -- -- 0.91


Sharpe Ratio 1.93 -- -- -- -- 1.05Treynor Ratio 6.14 -- -- -- -- 5.03Sortino Ratio 2.82 -- -- -- -- 1.82Tracking Error 1.15 -- -- -- -- 1.75Information Ratio 2.00 -- -- -- -- -0.30Upside Market Capture 139.05 -- -- -- -- 108.49Downside Market Capture 131.71 -- -- -- -- 133.20

Status Evaluation:

3yr Alpha 5yr Alpha AMP 3yr Excess vs AMP

5yr Excess vs AMP

Status

Current Quarter -- -- 0.00 -- --Prior Quarter - - 0.00 - -

Progress Investment Management - EM Debt - Net of FeesSeptember 30, 2017

Good Standing

- 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17

Rolling 5-year Excess Return vs. JPM Corp EM Bond Index


- 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Rolling 3-year Excess Return vs. JPM Corp EM Bond Index


Exhibit 18

Performance Analysis (Composite Data Gross of Fees)Description 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr SI (07/15)

Product Return 8.73 5.21 3.54 5.12 -- 7.0450% JPM EMBI / 50% JPM GBI-EM 5.98 3.41 2.02 3.51 -- 5.52Excess Returns 2.75 1.80 1.52 1.61 -- 1.52






Status Evaluation:

3 yr Alpha 5 yr Alpha AMP 3yr Alpha vs. AMP

5yr Alpha vs. AMP Status

Current Quarter -- -- 0.50 -- --Prior Quarter -- -- 0.50 -- --

Prudential EM Debt Blend - Composite Data, Gross of FeesSeptember 30, 2017

Good Standing

-

0.5

1.0

1.5

2.0

2.5

3.0

Rolling 5-year Excess Return vs. Custom EMD Benchmark


(1.0) (0.5)

- 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Rolling 3-year Excess Return vs. Custom EMD Benchmark


Exhibit 18

eVestment and its affiliated entities (collectively, "eVestment") collect information directly from investment management firms and other sources believed to be reliable; however,eVestment does not guarantee or warrant the accuracy, timeliness, or completeness of the information provided and is not responsible for any errors or omissions. Performanceresults may be provided with additional disclosures available on eVestment’s systems and other important considerations such as fees that may be applicable. Not for generaldistribution. * All categories not necessarily included; Totals may not equal 100%. Copyright 2013-2015 eVestment Alliance, LLC. All Rights Reserved.

Firm Key FactsA U M $3,572.00

Accounts 44

Portfolio Mgrs/Dual Role PMs 6

Analysts 7

% Employee Owned 100.00%

Total Employees 32

Legal Structure Private Limited Liability Company

Firm Background

CastleArk Management, LLCCastleArk Management LLC was founded in March 1999 and has been 100% employee owned since inception. In April 2012, Jerry Castellini entered into an agreement with co-founder, Ed Clark, topurchase his 50% stake over a five year period. At the end of 2012, Castellini also established an employee ownership plan to distribute 18% of the common equity to four key investmentprofessionals: Robert Takazawa, Quentin Ostrowski, Jim Stark and Greg Baxter. In December 2014, Kevin Dolsen, Joan Rockey and Nora Walsh became equity holders. The number of employeeowners has expanded to eight over the past several years and is expected to continue to grow over time, with an objective to reduce Jerry Castellini’s stake to under 50% by 2023.

CastleArk Management, LLC 11/20/2017CastleArk Small Company Growth Firm Overview

Firm InformationAddress 1 N. Wacker Drive

Address Suite 3950

Ci ty Chicago

State/Province Illinois

Zip/Postal Code 60606

Country United States

Website CastleArk.com

Phone 312.456.9682

Year Founded 1999

Account and AUM Information

Firm Background Narrative

AUMTotal $3,572.00

Taxable $17.00

Tax-Exempt $3,555.00

Institutional $3,555.00

AccountsTotal 44

Taxable 3

Tax-Exempt 41

Institutional 41

Accts Gained# of Accts (MRQ) 0

# of Accts (1 Year) 2

$ in Millions (MRQ) $0.00

$ in Millions (1 Year) $37.00

% of Assets 0.00%

Accts Lost# of Accts (MRQ) 1




% of Assets 0.82%

Ownership Info% Employee Owned 100.00%

% Parent Owned ---

% Publicly Held ---

% Minority Owned 11.00%

% Female Owned 2.00%

Ownership and Compliance Information

Marketing Contact Info

First Name CastleArk

Last Name Marketing

Phone 3124569682

E-mail [email protected]

Office LocationsCi ty Chicago


Secondary Office #1: City ---

Secondary Office #1: State ---





Exhibit 19

Product FactsPrimary Universe eVestment US Small Cap Growth Equity

Geographic Region United States

Inception Date 06/01/2007

Asset Class Equity

Product Domicile ---

Product Structure Direct Investment


AUMTotal $891.00

Taxable $0.00

Tax-Exempt $891.00

Institutional $891.00

AccountsTotal 12

Taxable 0

Tax-Exempt 12





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotPrimary Equity Capitalization Small Cap

Primary Equity Style Emphasis Growth

Preferred Benchmark Russell 2000 Growth

Secondary Equity Style Emphasis Pure Growth

Current # of Holdings 108

Foreign Securities Utilized? No

Approach Towards Currency Hedging Not Used

% Hedged to Local Currency ---

Max % Allowed in Emerging Mkts 0.00%

Derivitives Utilized? No

Available Under ESG? Yes

Product Characteristics

Fundamental CharacteristicsCurrent Cash Position 0.80%

Annual Turnover (LTM) 163.00%

Current P/E (12 mo Trailing) 34.87

Current P/B 4.11

Current P/S (12 mo Trailing) ---

Earnings Growth (Past 5 Yrs) 12.85%

Wgtd. Avg. Mkt. Cap $2,783

Median Mkt. Cap $2,481

Market Capitalization Breakdown>$50 Billion 0.00%

$15-50 Billion 0.00%

$7.5-15 Billion 0.42%

$1.5-7.5 Billion 76.26%

$750-1.5 Billion 17.83%

$400-750 Million 5.24%

<$400 Million 0.25%


Product Key FactsPrimary Equity Capitalization Small Cap


Preferred Benchmark Russell 2000 Growth

Accounts 12

Investment Focus Long Only

CastleArk Management, LLC 11/20/2017CastleArk Small Company Growth Product Overview

Sector Allocations - RussellIntegrated Oils ---

Technology ---

Health Care ---

Consumer Discretionary ---

Consumer Staples ---

Autos & Trans. ---

Producer Durables ---

Materials ---

Energy ---

Utilities ---

Other ---

Financial Services ---

Sector Allocation S&P/MSCIConsumer Disc. 13.98%

Consumer Staples 0.00%

Energy 1.61%

Financials 9.56%

Health Care 21.63%

Industrials 21.63%

Technology 23.24%

Materials 3.32%

Telecom 4.02%

Utilities 0.00%

Other 0.00%

Real Estate 1.01%

Team DescriptionPortfolio Mgrs/Dual Role PMs 2

Avg Yrs Exp 22.00

Avg Yrs w/Firm 9.00

Research Analysts 3

Avg Yrs Exp 5.00

Avg Yrs w/Firm 4.00

Team DescriptionTraders 2

Avg Yrs Exp 9.00

Avg Yrs w/Firm 9.00

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---

Portfolio Manager TurnoverLost (MRQ) 0

Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0

Analyst TurnoverLost (MRQ) 0

Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 1

Product- Account TypesCorporate 2

Superannuation 0

Public Fund 6

Union/Multi-Employer 2

Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 2

Other 0

Defined Contribution ---

Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 9973

Portfolio Mgrs/Dual Role PMs ---

Analysts ---


Total Employees ---

Legal Structure Private Corporation

Firm Background

MesirowMesirow Financial Holdings, Inc. is a Chicago-based diversified financial services firm of approximately 600 employees with a global reach, resources and capabilities.

The firm was founded in 1937 when Norman Mesirow purchased a seat on the New York Stock Exchange (NYSE). Since then, we have become a leading provider of financial services known forindependent minds and innovative solutions.

Mesirow Financial’s Investment Management Division had $33.0 billion in assets under management, and an additional $70.4 billion in currency risk management assets as of June 30, 2017. Theother assets are managed across several departments, including: Fixed Income, Equity Management, Institutional Real Estate – Direct Investments, Private Equity (Direct and Fund of Funds),Advanced Strategies (hedge fund strategies), Investment Strategies, Investment Advisory and Retirement Plan Advisory.

Mesirow Financial Investment Management, Inc. (MFIM) was started in 1974 to provide asset management to institutional investors and high net worth individuals.

Mesirow 11/20/2017Small Cap Value Equity Firm Overview

Firm InformationAddress 353 North Clark Street

Address ---

C i ty Chicago




Website www.mesirowfinancial.com

Phone 312.595.6000

Year Founded 1974



AUMTotal $111,592.70

Taxable ---

Tax-Exempt ---

Institutional ---

AccountsTotal 9973

Taxable ---

Tax-Exempt ---

Institutional ---




$ in Millions (1 Year) $5,503.33

% of Assets 0.80%





% of Assets 0.26%


% Parent Owned ---

% Publicly Held 0.00%





First Name James

Last Name Kilbane

Phone 312.595.6761










Exhibit 19

Product FactsPrimary Universe eVestment US Small Cap Value Equity



Asset Class Equity




AUMTotal $1,441.40

Taxable $0.00



AccountsTotal 18

Taxable 0

Tax-Exempt 18





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotPrimary Equity Capitalization Small Cap

Primary Equity Style Emphasis Value

Preferred Benchmark Russell 2000 Value

Secondary Equity Style Emphasis Relative Value




% Hedged to Local Currency 0.00%








Current P/B 2.10

Current P/S (12 mo Trailing) 1.50





$15-50 Billion 0.00%

$7.5-15 Billion 0.00%

$1.5-7.5 Billion 90.24%

$750-1.5 Billion 9.76%

$400-750 Million 0.00%

<$400 Million 0.00%


Product Key FactsPrimary Equity Capitalization Small Cap


Preferred Benchmark Russell 2000 Value

Accounts 18


Mesirow 11/20/2017Small Cap Value Equity Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 3.84%

Financials 22.43%

Health Care 9.38%

Industrials 19.13%

Technology 15.73%

Materials 4.61%

Telecom 0.00%

Utilities 5.68%

Other 0.00%

Real Estate 6.56%


Avg Yrs Exp 26.00

Avg Yrs w/Firm 1.00

Research Analysts 5

Avg Yrs Exp 21.00

Avg Yrs w/Firm 1.00


Avg Yrs Exp 16.00

Avg Yrs w/Firm 1.00

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 1

Gained (2013) 0


Superannuation 0

Public Fund 9


Found. & Endow. 3

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 2

Other 0

Defined Contribution 0

Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 215


Analysts ---


Total Employees 45


Firm Background

EARNEST Partners, LLCThe firm was founded and registered with the SEC 1999.

EARNEST Partners, LLC 11/20/2017Mid Cap Core Firm Overview

Firm InformationAddress 1180 Peachtree St.

Address Suite 2300

Ci ty Atlanta

State/Province Georgia



Website www.earnestpartners.com

Phone 404.815.8772

Year Founded 1998



AUMTotal $21,429.00

Taxable $5,857.00



AccountsTotal 215

Taxable 50

Tax-Exempt 165

Institutional 215





% of Assets 0.07%





% of Assets 1.53%


% Parent Owned 0.00%






First Name Patmon

Last Name Malcom

Phone 404-419-2616


Office LocationsCi ty Atlanta

State/Province Georgia

Secondary Office #1: City Beijing

Secondary Office #1: State China

Secondary Office #2: City Centro - Rio de Janeiro

Secondary Office #2: State Brazil

Secondary Office #3: City Jackson

Secondary Office #3: State United States

Exhibit 19

Product FactsPrimary Universe eVestment US Mid Cap Core Equity



Asset Class Equity




AUMTotal $869.00

Taxable $0.00

Tax-Exempt $869.00


AccountsTotal 17

Taxable 0

Tax-Exempt 17

Accts Gained# of Accts (MRQ) ---


$ in Millions (MRQ) ---


% of Assets ---

Accts Lost# of Accts (MRQ) ---




% of Assets ---

Strategy SnapshotPrimary Equity Capitalization Mid Cap

Primary Equity Style Emphasis Core

Preferred Benchmark Russell MidCap

Secondary Equity Style Emphasis ---

Current # of Holdings ---

Foreign Securities Utilized? ---

Approach Towards Currency Hedging ---


Max % Allowed in Emerging Mkts ---




Fundamental CharacteristicsCurrent Cash Position ---

Annual Turnover (LTM) ---

Current P/E (12 mo Trailing) ---

Current P/B ---


Earnings Growth (Past 5 Yrs) ---

Wgtd. Avg. Mkt. Cap ---

Median Mkt. Cap ---

Market Capitalization Breakdown>$50 Billion ---

$15-50 Billion ---

$7.5-15 Billion ---

$1.5-7.5 Billion ---

$750-1.5 Billion ---

$400-750 Million ---

<$400 Million ---


Product Key FactsPrimary Equity Capitalization Mid Cap


Preferred Benchmark Russell MidCap

Accounts 17


EARNEST Partners, LLC 11/20/2017Mid Cap Core Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---


Sector Allocation S&P/MSCIConsumer Disc. ---


Energy ---

Financials ---

Health Care ---

Industrials ---

Technology ---

Materials ---

Telecom ---

Utilities ---

Other ---

Real Estate ---

Team DescriptionPortfolio Mgrs/Dual Role PMs ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---

Research Analysts ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---

Team DescriptionTraders ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---

Portfolio Manager TurnoverLost (MRQ) ---

Lost (2013) ---

Gained (MRQ) ---

Gained (2013) ---

Analyst TurnoverLost (MRQ) ---

Lost (2013) ---

Gained (MRQ) ---

Gained (2013) ---


Superannuation 0

Public Fund 7


Found. & Endow. 1

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 49


Analysts 2


Total Employees 17


Firm Background

Channing Capital Management, LLCChanning Capital Management, LCC (Channing) was founded in 2003 and became a SEC registered investment advisory firm on September 26, 2003. The firm was incorporated in the State ofDelaware on August 8, 2003, and is a limited liability company. Eric T. McKissack, Wendell E. Mackey and Rodney B. Herenton are the founding partners of Channing which is headquartered inChicago, Illinois. Channing launched with the Mid-Cap Value product on January 19, 2004 with approximately $67 million in assets under management (AUM) followed by the Small-Cap Valueproduct launch on June 29, 2006. The total firm-wide assets exceed $2.0 billion.

Channing Capital Management, LLC 11/20/2017Channing Mid-Cap Value Firm Overview

Firm InformationAddress 10 South LaSalle Street, Suite 2401

Address ---

C i ty Chicago




Website www.channingcapital.com

Phone 312.223.0211

Year Founded 2003



AUMTotal $2,719.94

Taxable $267.52



AccountsTotal 49

Taxable 2

Tax-Exempt 47

Institutional 48





% of Assets 0.11%





% of Assets 1.22%


% Parent Owned ---

% Publicly Held ---


% Female Owned ---



First Name Rodney

Last Name Herenton

Phone 312.223.0211




Secondary Office #1: City Atlanta






Exhibit 19

Product FactsPrimary Universe eVestment US Mid Cap Value Equity



Asset Class Equity


Product Structure ---


AUMTotal $317.44

Taxable $0.00

Tax-Exempt $317.44


AccountsTotal 5

Taxable 0

Tax-Exempt 5





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotPrimary Equity Capitalization Mid Cap


Preferred Benchmark Russell MidCap Value













Current P/B 2.62



Wgtd. Avg. Mkt. Cap $13

Median Mkt. Cap $10


$15-50 Billion 58.73%

$7.5-15 Billion 30.62%

$1.5-7.5 Billion 10.42%

$750-1.5 Billion 0.23%

$400-750 Million 0.00%

<$400 Million 0.00%


Product Key FactsPrimary Equity Capitalization Mid Cap


Preferred Benchmark Russell MidCap Value

Accounts 5


Channing Capital Management, LLC 11/20/2017Channing Mid-Cap Value Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 7.14%

Financials 22.21%

Health Care 5.37%

Industrials 15.04%

Technology 16.51%

Materials 5.74%

Telecom 0.00%

Utilities 3.40%

Other 3.22%

Real Estate 4.00%


Avg Yrs Exp 27.00

Avg Yrs w/Firm 8.00


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 3


Found. & Endow. 1

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 2069


Analysts 257


Total Employees 6830

Legal Structure Public Corporation

Firm Background

T. Rowe Price Group, Inc.T. Rowe Price has a rich history spanning more than seven decades. Over the years, they have successfully navigated market cycles and secular shifts in the economy. They have worked hard todevelop innovative investment products in anticipation of changes in investors' needs and preferences. They are proud of the organization they have built and the clients they have the opportunityto serve. The following outlines key dates in the history of the organization:1937 T. Rowe Price founded in Baltimore, Maryland, USA.1947 T. Rowe Price is incorporated in the State of Maryland. T. Rowe Price registers with the SEC under the Investment Advisers Act of 1940. 1950 Launches first U.S.-registered mutual fund - the T. Rowe Price Growth Stock Fund.1951 First institutional segregated account client.1960 Launches dedicated small-cap stock mutual fund, the T. Rowe Price New Horizons Fund, one of the first in the U.S.1969 Launches dedicated natural resources fund, today the oldest and largest in the U.S.1971 T. Rowe Price establishes the Fixed Income Division to complement its well-known equity management capabilities.1974 T. Rowe Price Retirement Plan Services pioneers defined contribution plan management with inception of first retirement accounts.1979 Launches Rowe Price-Fleming International, Inc. "“ a joint venture between T. Rowe Price and Robert Fleming Holdings that achieves premier status as a non-U.S. asset manager for US-domiciled investors.1982 T. Rowe Price is the first investment firm to provide full-service, defined contribution plan services.1984 T. Rowe Price establishes a management committee to run the firm. 1986 T. Rowe Price initial public offering, trading on the NASDAQ Stock Market under the symbol "TROW". 1992 Launches a dedicated mid-cap fund, the first in the U.S.1996 Achieves $100 billion* in assets under management.1999 T. Rowe Price shares are added to the S&P 500 Equity Index. Establishes joint venture with Robert Fleming Holdings to form T. Rowe Fleming Asset Management (now T. Rowe Price International Ltd) in Japan.2000 Acquires 100% of Rowe Price-Fleming International, Inc. and rename it T. Rowe Price International Ltd.Price Associates reorganizes its operations into a holding company structure through an exchange of shares. Price Associates becomes a subsidiary of T. Rowe Price Group, Inc. ("Price Group").After the share exchange, all of the business and operations previously conducted by Price Associates and its subsidiaries were and continue to be conducted by entities within the Price Group.T. Rowe Price establishes a dedicated marketing and service company for non-U.S. investors -"“ T. Rowe Price International Ltd (formerly Global Investment Services Limited) -- which isregistered as an investment adviser with the United Kingdom's regulatory authority (the FSA) in January 2001.2001 Launches the T. Rowe Price Funds SICAV, domiciled in Luxembourg, for institutional investors and financial intermediaries outside the U.S.2004 Achieves $200 billion* in assets under management.2006 Achieves $300 billion* in assets under management.2006 T. Rowe Price raises quarterly dividend for 20th consecutive year.As planned, James Kennedy elected president and chief executive officer of the firm. Also as planned, the Board of Directors elects Brian Rogers chairman of the Board and Edward Bernard vicechairman. The election of Messrs. Kennedy, Rogers, and Bernard becomes effective on 1 January 2007, following the retirement of chairman and President George A. Roche on 31 December 2006.

T. Rowe Price Group, Inc. 11/20/2017US Structured Research Equity Strategy Firm Overview

Firm InformationAddress 100 E Pratt Street

Address ---

C i ty Baltimore

State/Province Maryland



Website www.troweprice.com

Phone 410.345.2000

Year Founded 1937




Taxable $746,027.00



AccountsTotal 2069

Taxable 1213

Tax-Exempt 856

Institutional 1384



$ in Millions (MRQ) $2,724.05


% of Assets 0.34%





% of Assets 0.05%




% Minority Owned ---

% Female Owned ---



First Name Chip

Last Name Wendler

Phone 410-345-2239


Office LocationsCi ty Baltimore


Secondary Office #1: City Owings Mills

Secondary Office #1: State Maryland

Secondary Office #2: City London

Secondary Office #2: State England

Secondary Office #3: City Hong Kong


Exhibit 19

Product FactsPrimary Universe eVestment US Enhanced S&P 500 Equity



Asset Class Equity




AUMTotal $25,959.95

Taxable $13,593.91



AccountsTotal 35

Taxable 7

Tax-Exempt 28





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotPrimary Equity Capitalization Large Cap

Primary Equity Style Emphasis Enhanced Index

Preferred Benchmark S&P 500

Secondary Equity Style Emphasis None


Foreign Securities Utilized? Yes




Derivitives Utilized? Yes






Current P/B 4.38






$15-50 Billion 28.33%

$7.5-15 Billion 7.39%

$1.5-7.5 Billion 1.63%

$750-1.5 Billion 0.00%

$400-750 Million 0.00%

<$400 Million 0.00%


Product Key FactsPrimary Equity Capitalization Large Cap



Accounts 35


T. Rowe Price Group, Inc. 11/20/2017US Structured Research Equity Strategy Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 5.32%

Financials 14.27%

Health Care 14.66%

Industrials 10.83%

Technology 24.68%

Materials 3.42%

Telecom 1.43%

Utilities 3.13%

Other 0.00%

Real Estate 2.88%


Avg Yrs Exp 17.00

Avg Yrs w/Firm 15.00

Research Analysts 27

Avg Yrs Exp 11.00

Avg Yrs w/Firm 7.00


Avg Yrs Exp 15.00


Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 11


Found. & Endow. 2

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 4

Other 6


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 54


Analysts ---


Total Employees ---


Firm Background

Piedmont Investment Advisors, LLCPiedmont Investment Advisors, LLC (Piedmont) was organized as a North Carolina Limited Liability Company on August 1, 2000. We are a professional money management firm located inDurham, NC specializing in fixed income and equity management, offering a suite of products that span the investment risk spectrum. We currently manage approximately $6.4 billion in assetsas of March 31, 2017. Piedmont is a minority and women owned firm, 100 % owned by its employees, and has a diverse workforce of 22 employees. Piedmont was founded on its core values ofDedication, Transparency, Partnership and Humility. With these principals in mind, Piedmont was built and designed as a destination firm.

We have built an institution where our clients always come first and our focus is on bringing integrity to the relationship of trust that traditionally exists between investment managers and theirclients. We believe that our success is dependent on establishing lasting client relationships and we work to build trust by offering investment products that strike an appropriate balancebetween risk and return and aim to generate attractive results consistently. We manage our products in a variety of market segments and manage them at specific levels of risk so that theycan be carefully matched to each client’s individual objectives and circumstances. By exercising appropriate levels of discretion and establishing realistic return objectives, we allow our clients tohave a clear understanding of what we will do with their portfolios and what constitutes an appropriate definition of success. Firm Highlights:2000 – 2008: Our Risk-Aware Philosophy and Three-Pronged Investment Process Drove the Growth of the FirmPiedmont was founded upon a risk-aware investment philosophy that combines multiple disciplines to out-perform client benchmarks on a risk-managed basis. We don’t rely on just a singlesource of insights, but rather, our process extracts value from the combination of three investment disciplines: quantitative, fundamental, and macro. Accordingly, Piedmont employs acollaborative investment process where all investment professionals come together in multiple forums to develop a firm-wide macro strategy and to discuss quantitative and fundamentalresearch insights that can be applied across all products. We term this collaboration the Unified Investment Platform.

Piedmont’s assets under management crossed the $1 billion mark in 2006. In 2007, CalPERS (working in partnership with Legato Capital Management) purchased a 21.09% minority ownershipstake in Piedmont Investment Advisors as a part of their Manager Development Program II.

2009: US Department of the Treasury ContractIn April 2009, the U.S. Department of the Treasury (“Treasury”) contracted with Piedmont to provide certain investment advisory services relating to the Capital Purchase Program. Piedmont hadfour analysts on its Bank Advisory Services team to support this completed Treasury mandate. In 2009, the firm’s assets under management crossed the $2 billion mark.

2011: Rosemont Partners became a minority investor in firmRosemont Investment Partners, LLC acquired a 30% minority interest in Piedmont, redeeming CalPERS and another minority investor solidifying Piedmont employee’s 70% ownership stake.Rosemont is a private equity firm, solely focused on providing capital and expertise to the investment management industry.

2015: Development and Growth of Firm, Launch of Passive Index Strategy, Knowledge Transfer EngagementPiedmont continued the development and growth of the firm’s investment capabilities through the 2011 to 2015 period. In May 2015, Piedmont entered a Strategic Partnership with a majorSoutheast Pension Plan with whom it has a longstanding client relationship as an investment manager. This partnership launched Piedmont’s passive product line with a $3.2 billion mandate. This

Piedmont Investment Advisors, LLC 11/20/2017Market Plus Firm Overview

Firm InformationAddress 2605 Meridian Parkway

Address Suite 105

Ci ty Durham

State/Province North Carolina



Website www.piedmontinvestment.com

Phone 919.688.8600

Year Founded 2000



AUMTotal $6,545.31

Taxable $370.23



AccountsTotal 54

Taxable 12

Tax-Exempt 42

Institutional 45





% of Assets 0.00%





% of Assets 0.00%


% Parent Owned ---

% Publicly Held ---





First Name Clarissa

Last Name Parker

Phone 919-433-3345


Office LocationsCi ty Durham

State/Province North Carolina







Exhibit 19

Product FactsPrimary Universe eVestment US Enhanced S&P 500 Equity



Asset Class Equity




AUMTotal $672.08

Taxable $0.00

Tax-Exempt $672.08


AccountsTotal 6

Taxable 0

Tax-Exempt 6





% of Assets 0.00%





% of Assets 0.00%




Secondary Equity Style Emphasis ---












Current P/B 4.79






$15-50 Billion ---

$7.5-15 Billion ---

$1.5-7.5 Billion ---

$750-1.5 Billion ---

$400-750 Million ---

<$400 Million ---





Accounts 6

Investment Focus Enhanced Index

Piedmont Investment Advisors, LLC 11/20/2017Market Plus Product Overview


Technology 22.07%

Health Care 14.71%

Consumer Discretionary 15.28%


Autos & Trans. ---

Producer Durables 10.14%

Materials 3.43%

Energy 5.35%

Utilities 4.25%

Other ---

Financial Services 17.95%



Energy 6.09%

Financials 13.00%

Health Care 14.84%

Industrials 8.44%

Technology 24.06%

Materials 3.64%

Telecom 1.77%

Utilities 2.45%

Other 0.00%

Real Estate 3.78%


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) ---

Gained (MRQ) ---

Gained (2013) ---


Lost (2013) ---

Gained (MRQ) ---

Gained (2013) ---


Superannuation 0

Public Fund 4


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 82


Analysts 2


Total Employees 16


Firm Background

Ativo Capital ManagementAtivo Capital Management, LLC (" Ativo") was founded in 2001 and is a registered investment advisor with a goal of delivering top quartile performance and exceptional service to institutionalclients. They follow a rules- based process that combines quantitative methodologies with a fundamental overlay to build long-only, high active share portfolios. They invest globally, with anemphasis on international markets. Central to their approach is a proprietary model that scores stocks based on our assessment of their intrinsic value, price momentum and other importantfactors.

From Ativo's inception, Ricardo Bekin has been its Chief Investment Officer and Principal Member. Michael S. Brooks (Director of Client Relations), Adan Galvan (Trader/Sr. Portfolio Manager),Dennis Aust (Director of Research), Eric Pucek (Chief Compliance Officer), Ram Gandikota (Sr. Portfolio Manager), and Kiat Tang (Senior Information Technology Manager) are the other currentprincipals at Ativo. The firm is 100% employee owned, SEC registered, and has met the requirements for certification as a bona fide Minority Business Enterprise as defined by the NationalMinority Development Council.

Ativo Capital Management 11/20/2017Ativo International AC ex US Firm Overview

Firm InformationAddress 120 N. La Salle Street

Address Suite 2150

Ci ty Chicago


Zip/Postal Code 60602-2493


Website www.ativocapital.com

Phone 312.263.7600

Year Founded 2001



AUMTotal $1,957.68

Taxable $1.06



AccountsTotal 82

Taxable 36

Tax-Exempt 46

Institutional 46





% of Assets 0.17%





% of Assets 13.29%








First Name Michael

Last Name Brooks

Phone 312.263.7600










Exhibit 19

Product FactsPrimary Universe eVestment ACWI ex-US All Cap Core Equity

Geographic Region ACWI Ex-US


Asset Class Equity




AUMTotal $658.46

Taxable $0.00

Tax-Exempt $658.46


AccountsTotal 11

Taxable 0

Tax-Exempt 11





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotPrimary Equity Capitalization All Cap


Preferred Benchmark MSCI ACWI ex-US-ND

Secondary Equity Style Emphasis GARP







Available Under ESG? No





Current P/B 2.01






$15-50 Billion 38.92%

$7.5-15 Billion 18.98%

$1.5-7.5 Billion 17.55%

$750-1.5 Billion 2.06%

$400-750 Million 0.00%

<$400 Million 0.00%


Product Key FactsPrimary Equity Capitalization All Cap



Accounts 11


Ativo Capital Management 11/20/2017Ativo International AC ex US Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 3.66%

Financials 20.42%

Health Care 3.67%

Industrials 17.37%

Technology 15.35%

Materials 10.45%

Telecom 3.75%

Utilities 1.83%

Other 1.88%

Real Estate 5.75%


Avg Yrs Exp 17.00


Research Analysts 2

Avg Yrs Exp 22.00

Avg Yrs w/Firm 3.00


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 1

Gained (2013) 0


Superannuation 0

Public Fund 4


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 7

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 1400


Analysts 429


Total Employees 834


Firm Background

Fidelity Institutional Asset ManagementFidelity Institutional Asset Management (FIAM) is an organization dedicated to meeting the unique needs of the institutional marketplace. As part of the Fidelity organization, FIAM leveragesFidelity’s institutional investment expertise to deliver products and solutions that meet our clients’ investment goals.

Historically, we have served the investment management needs of institutional firms (including intermediary firms, such as broker-dealers) through two separate business units—Pyramis GlobalAdvisors (Pyramis) and Fidelity Financial Advisor Solutions (FFAS). Pyramis was established in 2005 as a stand-alone organization with a focus on ensuring its investment, distribution and clientservicing platform would bring the best of Fidelity to the institutional marketplace. FFAS was established in 1979 with a focus on distributing Fidelity-managed investment products (e.g., mutualfunds, 529 plans, Variable Insurance Products, etc.) to national broker/dealers, regionals and independent broker/dealers, banks, trust companies, registered investment advisors (RIAs) andinsurance companies.

The rapidly evolving and increasingly complex investment needs of our clients presented an opportunity, and, in October 2015, FIAM was established. FIAM brings together the distribution andclient service teams from Pyramis and FFAS to create a single, integrated distribution and service organization. This new structure positions us to provide a simpler, more coordinated clientservice experience.

Fidelity Institutional Asset Management 11/20/2017Select International Plus Firm Overview

Firm InformationAddress 245 Summer Street

Address ---

C i ty Boston

State/Province Massachusetts



Website institutional.fidelity.com

Phone 401-292-7597

Year Founded 2005




Taxable $25,843.76



AccountsTotal 1400

Taxable 139

Tax-Exempt 1261

Institutional 1391





% of Assets 2.11%





% of Assets 2.76%





% Female Owned ---



First Name Gregory

Last Name Ciosek

Phone 401.292.7597


Office LocationsCi ty Boston


Secondary Office #1: City Smithfield, RI


Secondary Office #2: City Merrimack, NH




Exhibit 19

Product FactsPrimary Universe eVestment ACWI ex-US Large Cap Core Equity



Asset Class Equity




AUMTotal $1,906.63

Taxable $0.00



AccountsTotal 9

Taxable 0

Tax-Exempt 9





% of Assets 0.00%





% of Assets 0.00%
















Current P/B 1.98






$15-50 Billion 35.65%

$7.5-15 Billion 12.09%

$1.5-7.5 Billion 11.74%

$750-1.5 Billion 0.40%

$400-750 Million 0.00%

<$400 Million 0.00%





Accounts 9


Fidelity Institutional Asset Management 11/20/2017Select International Plus Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 6.44%

Financials 24.95%

Health Care 8.33%

Industrials 11.47%

Technology 11.73%

Materials 7.54%

Telecom 5.04%

Utilities 1.89%

Other 0.00%

Real Estate 2.47%


Avg Yrs Exp 24.00



Avg Yrs Exp 0.00

Avg Yrs w/Firm 6.00


Avg Yrs Exp 0.00


Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 4

Gained (MRQ) 13

Gained (2013) 1


Superannuation 0

Public Fund 3


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 42


Analysts 4


Total Employees 28

Legal Structure Other

Firm Background

GlobeFlex Capital, L.P.GlobeFlex Capital, L.P., is a global equity investment manager, founded and headquartered in San Diego, CA. Structured as a California Limited partnership in 1994, they are 91% employee-ownedand majority women-owned, with the remaining equity being retained by silent “angel” investors. Currently, there are eleven employee-owners, with founders, Marina L. Marrelli, CEO, and Robert J.Anslow, Jr., CIO, maintaining controlling interest.

GlobeFlex Research India (GRI), a wholly-owned subsidiary of GlobeFlex Capital, L.P., is their dedicated research arm. GRI is comprised of two offices in India, which provide fundamental andquantitative investment research, data gathering expertise, and technology development.

GlobeFlex Capital, L.P. 11/20/2017GlobeFlex ACWI ex-U.S. Firm Overview

Firm InformationAddress 4365 Executive Drive

Address Suite 720

Ci ty San Diego

State/Province California



Website www.globeflex.com

Phone 858.658.9060

Year Founded 1994



AUMTotal $4,339.00

Taxable $135.00



AccountsTotal 42

Taxable 9

Tax-Exempt 33

Institutional 42





% of Assets 0.00%





% of Assets 2.08%


% Parent Owned ---

% Publicly Held ---





First Name Noah

Last Name Bretz

Phone 8586589060


Office LocationsCi ty San Diego


Secondary Office #1: City Boston






Exhibit 19

Product FactsPrimary Universe eVestment ACWI ex-US All Cap Core Equity



Asset Class Equity




AUMTotal $1,014.00

Taxable $0.00



AccountsTotal 3

Taxable 0

Tax-Exempt 3





% of Assets 0.00%





% of Assets 0.00%



Preferred Benchmark MSCI ACWI ex-US-GD





% Hedged to Local Currency 0.00%








Current P/B 1.80






$15-50 Billion 30.60%

$7.5-15 Billion 18.20%

$1.5-7.5 Billion 31.00%

$750-1.5 Billion 1.60%

$400-750 Million 1.30%

<$400 Million 0.00%




Preferred Benchmark MSCI ACWI ex-US-GD

Accounts 3


GlobeFlex Capital, L.P. 11/20/2017GlobeFlex ACWI ex-U.S. Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 13.30%

Financials 17.20%

Health Care 7.80%

Industrials 9.30%

Technology 8.20%

Materials 14.50%

Telecom 7.00%

Utilities 6.10%

Other 0.00%

Real Estate 2.50%


Avg Yrs Exp 23.00


Research Analysts 4

Avg Yrs Exp 13.00

Avg Yrs w/Firm 2.00


Avg Yrs Exp 0.00

Avg Yrs w/Firm 0.00

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 3


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 23


Analysts 7


Total Employees 36


Firm Background

ProgressProgress was founded in 1990 as an independent, minority- and employee-owned Registered Investment Advisor. As a manager of emerging managers, Progress offers customized investmentsolutions to institutional clients seeking innovative sources of alpha. By investing in emerging managers, Progress creates diversified, risk-controlled portfolios while providing expert access toundiscovered investment talent.

In 1998, Progress became a wholly owned subsidiary of Liberty Financial Companies when it was acquired in a friendly transaction aimed at leveraging Liberty’s distribution channels and providingliquidity to Progress’ original founders who were at or near retirement. Before the benefits of the Liberty/Progress relationship could be realized, Liberty was acquired by Fleet Boston Financial in2001, at which time Progress determined it would once again pursue independence in order to regain control of its destiny and return the firm to its legacy as a minority-owned firm.

Progress achieved that goal in 2004, when its senior leadership team successfully completed a management buyback acquiring the firm in whole from Columbia Management Group, a subsidiaryof Bank of America, which acquired Fleet Boston Financial. Progress achieved the acquisition with the assistance of an outside institutional investor, the Massachusetts Bay TransportationAuthority Retirement Fund (MBTARF) who acquired a 40% stake in Progress alongside its management team. In 2008, Progress purchased MBTARF’s 40% equity stake in the firm, becoming100% employee-owned, and remains so to this day.

Progress 11/20/2017Non-US Equity Firm Overview

Firm InformationAddress 33 New Montgomery Street

Address Suite 1900

Ci ty San Francisco




Website www.progressinvestment.com

Phone 415.512.3480

Year Founded 1990



AUMTotal $6,814.00

Taxable $0.00



AccountsTotal 23

Taxable 0

Tax-Exempt 23

Institutional 23





% of Assets 0.04%





% of Assets 1.93%








First Name Linda

Last Name Cornett

Phone 415.512.3480


Office LocationsCi ty San Francisco








Exhibit 19

Product FactsPrimary Universe eVestment EAFE All Cap Core Equity

Geographic Region E A F E


Asset Class Equity


Product Structure Fund of Funds


AUMTotal $1,264.00

Taxable $0.00



AccountsTotal 4

Taxable 0

Tax-Exempt 4





% of Assets 0.00%





% of Assets 0.00%



Preferred Benchmark MSCI EAFE-ND







Derivitives Utilized? ---






Current P/B 1.79



Wgtd. Avg. Mkt. Cap $44

Median Mkt. Cap ---


$15-50 Billion ---

$7.5-15 Billion ---

$1.5-7.5 Billion ---

$750-1.5 Billion ---

$400-750 Million ---

<$400 Million ---





Accounts 4


Progress 11/20/2017Non-US Equity Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 4.64%

Financials 20.39%

Health Care 8.44%

Industrials 14.78%

Technology 11.82%

Materials 7.36%

Telecom 4.11%

Utilities 1.86%

Other 0.28%

Real Estate 4.54%


Avg Yrs Exp 27.00

Avg Yrs w/Firm 8.00

Research Analysts 2

Avg Yrs Exp 17.00

Avg Yrs w/Firm 7.00


Avg Yrs Exp 0.00

Avg Yrs w/Firm 0.00

Risk Monitors 1

Avg Yrs Exp 16

Avg Yrs w/Firm 8.00


Lost (2013) 1

Gained (MRQ) 0

Gained (2013) 1


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 4


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 44


Analysts 4


Total Employees 21


Firm Background

Strategic Global Advisors, LLCStrategic Global Advisors, LLC (SGA) was founded in November 2005 by Cynthia Tusan, CFA who began managing client assets the following month. Ms. Tusan envisioned a firm which wouldcombine the best of systematic analysis with more traditional, hands-on fundamental company analysis. In 2006, Ms. Tusan hired Gary Baierl, PhD as CIO and co-founder. Gary had previouslydeveloped and oversaw the quantitative analysis at a traditional deep value firm, and shared Ms. Tusan’s vision for combining systematic and traditional approaches. Together, they have built theteam and track record which exists today. The firm’s global approach to research has enabled it to launch international, US and global equity strategies.

The majority of SGA's ownership is held by employees. All outside owners hold non-voting equity. The two largest outside owners are members of the Advisory Committee. The AdvisoryCommittee is not involved in the day to day operations of SGA, but rather serves as a sounding board and a source of independent insight for industry best practices and market trends.

SGA entered into a strategic partnership with Nile Capital Fund, LP in December 2015. In exchange for a non-voting equity stake in the firm (of less than 25%), Nile assists SGA in developingcustomized solutions focused on value-creating activities and in sensibly managing asset growth while ensuring the continued integrity of the investment process. SGA retains control of all firmday-to-day decisions. Individuals affiliated with the Nile Capital Fund, LP have significant asset management experience spanning the areas of marketing and distribution, operations, riskmanagement, compliance and asset management.

Strategic Global Advisors, LLC 11/20/2017International Equity Firm Overview

Firm InformationAddress 100 Bayview Circle, Suite 650

Address ---

C i ty Newport Beach




Website www.sgadvisors.com

Phone 949.706.2640

Year Founded 2005



AUMTotal $3,862.86

Taxable $159.65



AccountsTotal 44

Taxable 13

Tax-Exempt 31

Institutional 44





% of Assets 0.07%





% of Assets 0.17%


% Parent Owned ---

% Publicly Held ---





First Name Sam

Last Name King

Phone 919.937.9297


Office LocationsCi ty Newport Beach


Secondary Office #1: City Chicago

Secondary Office #1: State Illinois





Exhibit 19

Product FactsPrimary Universe eVestment EAFE Large Cap Core Equity



Asset Class Equity




AUMTotal $1,932.15

Taxable $14.95



AccountsTotal 13

Taxable 3

Tax-Exempt 10





% of Assets 0.00%





% of Assets 0.00%
















Current P/B 1.75






$15-50 Billion 42.89%

$7.5-15 Billion 22.68%

$1.5-7.5 Billion 9.18%

$750-1.5 Billion 0.00%

$400-750 Million 0.00%

<$400 Million 0.00%





Accounts 13


Strategic Global Advisors, LLC 11/20/2017International Equity Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 4.51%

Financials 21.38%

Health Care 12.14%

Industrials 14.87%

Technology 6.96%

Materials 7.94%

Telecom 3.74%

Utilities 1.79%

Other 0.00%

Real Estate 2.45%


Avg Yrs Exp 19.00

Avg Yrs w/Firm 9.00

Research Analysts 4

Avg Yrs Exp 7.00

Avg Yrs w/Firm 1.00


Avg Yrs Exp 21.00

Avg Yrs w/Firm 0.00

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 5


Found. & Endow. 1

Healthcare 0

High Net Worth 3

Insurance 0

Wrap Account 0

Sub-Advised 1

Other 2


Supranationals 0

Sovereign Wealth 0

Exhibit 19


Firm Key FactsA U M $5,976,892.00

Accounts 29446


Analysts 371




Firm Background

BlackRockBlackRock is a premier provider of global investment management services. BlackRock manages assets across equity, fixed income, alternatives, multi-asset, and cash management strategiesfor institutional and retail clients. Through BlackRock Solutions® (“BRS”), the firm provides risk management and advisory services that combine capital markets expertise with internally-developed systems and technology.

BlackRock was founded in New York City in 1988 by eight partners, five of whom remain active in the firm today. They shared a determination to put client needs and interests first, a dedicationto data-driven investing, and a passion for understanding and managing risk. By listening to clients and understanding their unmet needs, the firm innovated in the areas of closed-end funds,trusts, defined contribution plans and more.

Development also began on Aladdin®, the firm’s unified investment platform that ultimately combines trading, risk management, and client reporting. Aladdin’s capacity for insight woulddistinguish BlackRock as an investment and risk manager and become the basis for BlackRock Solutions. Substantial resources continue to be allocated to ongoing development of technology andanalytical capabilities for internal users and external clients.

BlackRock initially focused primarily on fixed income. In 1995, the firm became affiliated with The PNC Financial Services Group, Inc. (“PNC”) and began managing open-end mutual funds,including equity and cash funds. BlackRock went public with broad employee ownership in 1999.

As the firm diversified, the concept of “One BlackRock” was developed and became a core principle. BlackRock established a coordinated platform rather than autonomous business units;managing our investment platforms together, BlackRock put in place a client-centric business model in which the entire firm’s resources and products can be leveraged for the benefit of clients.

By 2005, BlackRock had strong fixed income and cash businesses and growing equity and advisory capabilities. The firm then undertook a series of transformational mergers that added coreinvestment competencies. These acquisitions strengthened BlackRock's products and services mix with more offerings in equity, multi-asset products and alternatives, and greatly expanded thefirm's scale and global reach. Two significant steps in this process have been the mergers with Merrill Lynch Investment Managers (“MLIM”) in 2006 and Barclays Global Investors (“BGI”) in2009. MLIM began managing assets in the UK in 1946 as part of a predecessor entity. BGI traces its roots back to 1922, when its predecessor organizations began managing US institutionalassets.

Other events include the acquisition of State Street Research & Management in 2005 and the fund of funds business of Quellos Group, LLC in 2007, which established our hedge fund solutionsplatform.

Today, BlackRock is a leading global asset and risk manager, serving many of the world's largest companies, pension funds, foundations, and public institutions as well as millions of individualinvestors globally.

BlackRock 11/20/2017International Alpha Tilts Firm Overview

Firm InformationAddress 55 East 52nd Street

Address ---

C i ty New York

State/Province New York



Website www.blackrock.com

Phone 212.810.5300

Year Founded 1988



AUMTotal $5,976,892.00

Taxable $3,355,926.00

Tax-Exempt $2,620,966.00

Institutional $3,730,101.00

AccountsTotal 29446

Taxable 13661

Tax-Exempt 15785

Institutional 27728





% of Assets 2.64%





% of Assets 2.10%





% Female Owned ---



First Name Sean

Last Name Swesey

Phone 415.670.6463


Office LocationsCi ty New York


Secondary Office #1: City San Francisco



Secondary Office #2: State United Kingdom



Exhibit 19

Product FactsPrimary Universe eVestment EAFE Large Cap Core Equity



Asset Class Equity




AUMTotal $1,987.40

Taxable $0.00



AccountsTotal 13

Taxable 0

Tax-Exempt 13

Accts Gained# of Accts (MRQ) ---




% of Assets ---

Accts Lost# of Accts (MRQ) ---




% of Assets ---







Approach Towards Currency Hedging Defensive









Current P/B 1.77






$15-50 Billion 33.98%

$7.5-15 Billion 19.07%

$1.5-7.5 Billion 14.29%

$750-1.5 Billion 0.05%

$400-750 Million 0.00%

<$400 Million 0.00%





Accounts 13


BlackRock 11/20/2017International Alpha Tilts Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 3.53%

Financials 18.51%

Health Care 10.31%

Industrials 14.30%

Technology 8.71%

Materials 8.91%

Telecom 5.54%

Utilities 3.20%

Other 0.00%

Real Estate 4.44%


Avg Yrs Exp 13.00

Avg Yrs w/Firm 9.00


Avg Yrs Exp 12.00

Avg Yrs w/Firm 7.00


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 2

Gained (MRQ) 0

Gained (2013) 1


Lost (2013) 2

Gained (MRQ) 3

Gained (2013) 1

Product- Account TypesCorporate ---

Superannuation ---

Public Fund ---

Union/Multi-Employer ---

Found. & Endow. ---

Healthcare ---

High Net Worth ---

Insurance ---

Wrap Account ---

Sub-Advised ---

Other ---


Supranationals ---

Sovereign Wealth ---

Exhibit 19



Accounts 162


Analysts 4


Total Employees 65

Legal Structure Other

Firm Background

Mondrian Investment Partners LimitedMondrian Investment Partners Limited was founded and SEC registered in 1990 under the name Delaware International Advisers Ltd. It was then affiliated with Delaware Investments.

On September 24, 2004 a senior management team, together with private equity funds sponsored by Hellman & Friedman LLC, a leading private equity firm, completed the acquisition of DelawareInternational Advisers Ltd. Upon closing of the transaction, the firm changed its name to Mondrian Investment Partners Limited ("Mondrian").

Effective July 12, 2011 our existing employee partnership purchased a 27.5% minority interest of the Company held by the private equity firm Hellman and Friedman to take ownership ofMondrian by the employee partnership to 100%.

Mondrian Investment Partners Limited 11/20/2017Global All Countries World Equity Firm Overview

Firm InformationAddress Fifth Floor, 10 Gresham Street

Address ---

C i ty London

State/Province England

Zip/Postal Code EC2V 7JD

Country United Kingdom

Website www.mondrian.com

Phone 44 20 7477 7000

Year Founded 1990



AUMTotal $61,583.14

Taxable $8,928.87



AccountsTotal 162

Taxable 32

Tax-Exempt 130

Institutional 161





% of Assets 0.00%





% of Assets 0.00%





% Female Owned ---



First Name Peter

Last Name Riviello

Phone 215.825.4503


Office LocationsCi ty London


Secondary Office #1: City Philadelphia

Secondary Office #1: State Pennsylvania





Exhibit 19

Product FactsPrimary Universe eVestment Global Large Cap Value Equity

Geographic Region Global


Asset Class Equity




AUMTotal $664.10

Taxable $0.00

Tax-Exempt $664.10


AccountsTotal 3

Taxable 0

Tax-Exempt 3





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotPrimary Equity Capitalization Mid-Large Cap


Preferred Benchmark MSCI ACWI-ND

Secondary Equity Style Emphasis Dividend Focused












Current P/B 1.79






$15-50 Billion 23.41%

$7.5-15 Billion 10.91%

$1.5-7.5 Billion 12.94%

$750-1.5 Billion 0.00%

$400-750 Million 0.00%

<$400 Million 0.00%


Product Key FactsPrimary Equity Capitalization Mid-Large Cap


Preferred Benchmark MSCI ACWI-ND

Accounts 3


Mondrian Investment Partners Limited 11/20/2017Global All Countries World Equity Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 7.07%

Financials 17.88%

Health Care 20.31%

Industrials 6.62%

Technology 11.12%

Materials 4.64%

Telecom 7.43%

Utilities 0.59%

Other 0.00%

Real Estate 2.44%


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) ---

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) ---

Gained (2013) 0


Superannuation 0

Public Fund 1


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 1


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 2180


Analysts 416



Legal Structure Private Limited Liability Partnership (LLP)

Firm Background

Wellington Management Company LLPWith US$1,051 billion in assets under management, Wellington Management serves as an investment adviser to over 2,150 clients located in more than 53 countries, as of 30 September 2017. Oursingular focus is investments — from global equities and fixed income to currencies and commodities. We like to describe ourselves as a community of teams that create solutions designed torespond to specific client needs. Our most distinctive strength is our proprietary, independent research, which is shared across all areas of the organization and used only for managing ourclients' portfolios.

We trace our roots to the founding of the Wellington Fund in 1928. Headquartered in Boston, Massachusetts, we also have offices in Chicago, Illinois; Radnor, Pennsylvania; San Francisco,California; Beijing; Frankfurt; Hong Kong; London; Luxembourg; Singapore; Sydney; Tokyo; and Zurich.

Wellington Management focuses on institutional relationships. Our client base is global and diverse by design and includes mutual fund and variable insurance sponsors; company, occupational,and public pension funds; defined contribution plan sponsors; government and supranational entities; banks and private banks; insurance entities; endowments, foundations, and religious andhealth care institutions; investment advisory firms; private investment offices; and high-net-worth individuals.

Important dates and events in Wellington Management’s history are:

1928Wellington Fund is established as the first balanced mutual fund in the United States.1933Wellington Management Company is incorporated.1967Wellington Management merges with Thorndike, Doran, Paine, and Lewis, an independent investment counseling firm founded in Boston, Massachusetts, in 1960.1979Wellington Management is purchased by its key employees and a partnership structure is established.1982Wellington Trust Company, NA receives charter as a national bank by the US Office of the Comptroller of the Currency.1983Our London-based affiliate is established.1996Our Singapore office is established.1997The Tokyo and Sydney offices start operation.2003

Wellington Management Company LLP 11/20/2017Global Research Equity Firm Overview

Firm InformationAddress 280 Congress Street

Address ---

C i ty Boston




Website www.wellington.com

Phone 617.951.5000

Year Founded 1928



AUMTotal $1,050,944.00

Taxable $700,154.00



AccountsTotal 2180

Taxable 990

Tax-Exempt 1190

Institutional 2180





% of Assets 0.36%





% of Assets 0.07%


% Parent Owned ---

% Publicly Held ---


% Female Owned ---



First Name Jeet

Last Name Rehal

Phone 617.951.5634


Office LocationsCi ty Boston




Secondary Office #2: City Tokyo

Secondary Office #2: State Japan

Secondary Office #3: City Sydney

Secondary Office #3: State Australia

Exhibit 19

Product FactsPrimary Universe eVestment Global All Cap Core Equity



Asset Class Equity




AUMTotal $14,604.00

Taxable $324.00



AccountsTotal 26

Taxable 1

Tax-Exempt 25





% of Assets 0.21%





% of Assets 0.17%



Preferred Benchmark MSCI World-GD













Current P/B 2.60






$15-50 Billion 30.00%

$7.5-15 Billion 15.00%

$1.5-7.5 Billion 11.00%

$750-1.5 Billion 2.00%

$400-750 Million 0.00%

<$400 Million 0.00%




Preferred Benchmark MSCI World-GD

Accounts 26


Wellington Management Company LLP 11/20/2017Global Research Equity Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 6.00%

Financials 17.00%

Health Care 12.00%

Industrials 13.00%

Technology 17.00%

Materials 6.00%

Telecom 3.00%

Utilities 4.00%

Other 0.00%

Real Estate 3.00%


Avg Yrs Exp 0.00

Avg Yrs w/Firm 0.00


Avg Yrs Exp 20.00



Avg Yrs Exp 0.00

Avg Yrs w/Firm 0.00

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 12


Found. & Endow. 2

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 1

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 2069


Analysts 257




Firm Background

TRPT. Rowe Price has a rich history spanning more than seven decades. Over the years, they have successfully navigated market cycles and secular shifts in the economy. They have worked hard todevelop innovative investment products in anticipation of changes in investors' needs and preferences. They are proud of the organization they have built and the clients they have the opportunityto serve. The following outlines key dates in the history of the organization:1937 T. Rowe Price founded in Baltimore, Maryland, USA.1947 T. Rowe Price is incorporated in the State of Maryland. T. Rowe Price registers with the SEC under the Investment Advisers Act of 1940. 1950 Launches first U.S.-registered mutual fund - the T. Rowe Price Growth Stock Fund.1951 First institutional segregated account client.1960 Launches dedicated small-cap stock mutual fund, the T. Rowe Price New Horizons Fund, one of the first in the U.S.1969 Launches dedicated natural resources fund, today the oldest and largest in the U.S.1971 T. Rowe Price establishes the Fixed Income Division to complement its well-known equity management capabilities.1974 T. Rowe Price Retirement Plan Services pioneers defined contribution plan management with inception of first retirement accounts.1979 Launches Rowe Price-Fleming International, Inc. "“ a joint venture between T. Rowe Price and Robert Fleming Holdings that achieves premier status as a non-U.S. asset manager for US-domiciled investors.1982 T. Rowe Price is the first investment firm to provide full-service, defined contribution plan services.1984 T. Rowe Price establishes a management committee to run the firm. 1986 T. Rowe Price initial public offering, trading on the NASDAQ Stock Market under the symbol "TROW". 1992 Launches a dedicated mid-cap fund, the first in the U.S.1996 Achieves $100 billion* in assets under management.1999 T. Rowe Price shares are added to the S&P 500 Equity Index. Establishes joint venture with Robert Fleming Holdings to form T. Rowe Fleming Asset Management (now T. Rowe Price International Ltd) in Japan.2000 Acquires 100% of Rowe Price-Fleming International, Inc. and rename it T. Rowe Price International Ltd.Price Associates reorganizes its operations into a holding company structure through an exchange of shares. Price Associates becomes a subsidiary of T. Rowe Price Group, Inc. ("Price Group").After the share exchange, all of the business and operations previously conducted by Price Associates and its subsidiaries were and continue to be conducted by entities within the Price Group.T. Rowe Price establishes a dedicated marketing and service company for non-U.S. investors -"“ T. Rowe Price International Ltd (formerly Global Investment Services Limited) -- which isregistered as an investment adviser with the United Kingdom's regulatory authority (the FSA) in January 2001.2001 Launches the T. Rowe Price Funds SICAV, domiciled in Luxembourg, for institutional investors and financial intermediaries outside the U.S.2004 Achieves $200 billion* in assets under management.2006 Achieves $300 billion* in assets under management.2006 T. Rowe Price raises quarterly dividend for 20th consecutive year.As planned, James Kennedy elected president and chief executive officer of the firm. Also as planned, the Board of Directors elects Brian Rogers chairman of the Board and Edward Bernard vicechairman. The election of Messrs. Kennedy, Rogers, and Bernard becomes effective on 1 January 2007, following the retirement of chairman and President George A. Roche on 31 December 2006.

TRP 11/20/2017Glob Foc Gr Firm Overview

Firm InformationAddress 100 E Pratt Street

Address ---

C i ty Baltimore




Website www.troweprice.com

Phone 410.345.2000

Year Founded 1937




Taxable $746,027.00



AccountsTotal 2069

Taxable 1213

Tax-Exempt 856

Institutional 1384





% of Assets 0.34%





% of Assets 0.05%





% Female Owned ---



First Name Chip

Last Name Wendler

Phone 410-345-2239


Office LocationsCi ty Baltimore


Secondary Office #1: City Owings Mills

Secondary Office #1: State Maryland





Exhibit 19

Product FactsPrimary Universe eVestment Global All Cap Growth Equity



Asset Class Equity




AUMTotal $6,386.35

Taxable $2,243.66



AccountsTotal 20

Taxable 11

Tax-Exempt 9





% of Assets 0.00%





% of Assets 0.00%



Preferred Benchmark MSCI ACWI-GD













Current P/B 4.72






$15-50 Billion 31.84%

$7.5-15 Billion 6.72%

$1.5-7.5 Billion 9.42%

$750-1.5 Billion 0.00%

$400-750 Million 0.39%

<$400 Million 0.00%




Preferred Benchmark MSCI ACWI-GD

Accounts 20


TRP 11/20/2017Glob Foc Gr Product Overview


Technology ---

Health Care ---



Autos & Trans. ---


Materials ---

Energy ---

Utilities ---

Other ---




Energy 2.43%

Financials 16.30%

Health Care 15.06%

Industrials 6.67%

Technology 30.84%

Materials 4.04%

Telecom 0.00%

Utilities 1.53%

Other 0.00%

Real Estate 0.00%


Avg Yrs Exp 16.00



Avg Yrs Exp 9.00

Avg Yrs w/Firm 5.00


Avg Yrs Exp 15.00


Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 2

Gained (MRQ) 11

Gained (2013) 7


Superannuation 0

Public Fund 3


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 2

Other 6


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 265


Analysts 4


Total Employees 31


Firm Background

Garcia Hamilton & Associates, L.P.Garcia Hamilton & Associates, L.P. (GH&A) was founded in 1988 and offers high quality fixed income for institutional investors. Its diversified client base includes public funds, jointly trusteedplans, endowments and corporations. The firm is a limited partnership with current assets under management of approximately $9.8 billion.

The firm is 100% employee-owned by nine internal partners with approximately 91% held by minority and women partners, of which 59% is held by minority partners and 55% by Hispanicpartners. In addition, GH&A does not have any outside affiliations . On June 30, 2013, the firm celebrated 25 years of asset management services. Furthermore, GH&A has received recognition. In2009, the firm was awarded Core Fixed Income Manager of the Year by Emerging Manager Monthly. In 2014 Garcia Hamilton & Associates was named Fixed Income Investment Grade Manager ofthe Year by Institutional Investor. In 2015 Institutional Investor awarded us the Intermediate-Term Manager of the Year. In 2016 Institutional Investor awarded us the Intermediate-Term Managerof the Year for the second year in a row.

Garcia Hamilton & Associates, L.P. 11/20/2017Fixed Income - Aggregate Firm Overview

Firm InformationAddress Five Houston Center

Address 1401 McKinney Street, Suite 1600

Ci ty Houston

State/Province Texas



Website www.GarciaHamiltonAssociates.com

Phone 713.853.2359

Year Founded 1988



AUMTotal $9,830.00

Taxable $246.00



AccountsTotal 265

Taxable 10

Tax-Exempt 255

Institutional 259





% of Assets 4.48%





% of Assets 1.61%








First Name Ruby

Last Name Dang

Phone 713-853-2359


Office LocationsCi ty Houston








Exhibit 19

Product FactsPrimary Universe eVestment US Core Fixed Income



Asset Class Fixed Income




AUMTotal $7,078.00

Taxable $204.00



AccountsTotal 166

Taxable 6

Tax-Exempt 160





% of Assets 5.93%





% of Assets 0.53%

Strategy SnapshotFixed Income Duration Emphasis Core/All Durations

Fixed Income Style Emphasis Core/Aggregate

Preferred BenchmarkBloomberg Barclays USAggregate

Minimum Quality Issue A

Portfolio Holdings (Typical) 40

Approach Towards CurrencyHedging Not Used






Current # of Bond Issues 32

Effective Duration (Yrs) 4.77

Average Maturity (Yrs) 6.80

Yield to Maturity 1.89%

Current Term Structure Barbell

Average Quality Issue A A

Duration BreakdownDuration < 1 Yr 63.30%

Duration 1-3 Yrs 1.20%





Duration > 20 Yrs 0.00%


Product Key FactsPreferred Benchmark Bloomberg Barclays US Aggregate

Accounts 166


Garcia Hamilton & Associates, L.P. 11/20/2017Fixed Income - Aggregate Product Overview

Regional AllocationNorth America 100.00%

United Kingdom 0.00%

Continental Europe 0.00%

Japan 0.00%

Asia ex-Japan 0.00%

Emerging Mkts. 0.00%

Other 0.00%

Total Dev. Markets 100.00%

Credit QualityGovernment Guaranteed:Current 71.67%

AAA/Aaa: Current 0.00%

AA/Aa: Current 2.24%

A: Current 25.09%

BBB/Baa: Current 1.00%

BB/Ba: Current 0.00%

B: Current 0.00%

CCC/Caa: Current 0.00%

CC/Ca: Current 0.00%

C: Current 0.00%

Distressed Debt: Current 0.00%

Not Rated: Current 0.00%

Other: Current 0.00%


Avg Yrs Exp 20.00


Research Analysts 4

Avg Yrs Exp 14.00

Avg Yrs w/Firm 1.00


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 88


Found. & Endow. 29

Healthcare 0

High Net Worth 3

Insurance 5

Wrap Account 0

Sub-Advised 2

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 50


Analysts 6


Total Employees 21

Legal Structure Private S-Type Corporation

Firm Background

Pugh Capital Management, Inc.Pugh Capital Management, Inc., a subchapter S Corporation, was founded in 1991 by Mary Pugh and Scott Greiwe. The firm was registered as an investment advisor with the SEC on June 27, 1991and specializes in active investment grade fixed income management for institutional clients. Pugh Capital does not have a parent organization and has one principal office located in Seattle, WA.

Pugh Capital was self-funded and started with $5 million under management in 1991. Over the past 20 years the firm has grown organically through cultivating existing client relationships and bygaining new clients which has grown the firm to its current size of $4.8 billion in assets as of 6/30/2017.

The firm is 100% independent and employee owned.

Pugh Capital Management, Inc. 11/20/2017Core Fixed Income Firm Overview

Firm InformationAddress 520 Pike Tower

Address Suite 2900

Ci ty Seattle

State/Province Washington



Website www.pughcapital.com

Phone 206.322.4985

Year Founded 1991



AUMTotal $5,571.87

Taxable $107.83



AccountsTotal 50

Taxable 1

Tax-Exempt 49

Institutional 50





% of Assets 0.00%





% of Assets 0.00%








First Name Deanna

Last Name Hobson

Phone 206-322-4985


Office LocationsCi ty Seattle

State/Province Washington







Exhibit 19

Product FactsPrimary Universe eVestment US Core Fixed Income







AUMTotal $2,812.91

Taxable $107.83



AccountsTotal 30

Taxable 1

Tax-Exempt 29





% of Assets ---





% of Assets ---




Minimum Quality Issue ---












Current Term Structure ---

Average Quality Issue A










Accounts 30


Pugh Capital Management, Inc. 11/20/2017Core Fixed Income Product Overview




Japan 0.00%

Asia ex-Japan 0.00%


Other 0.00%





A: Current 7.90%



B: Current 0.00%



C: Current 0.00%





Avg Yrs Exp 21.00


Research Analysts 6

Avg Yrs Exp 11.00

Avg Yrs w/Firm 6.00


Avg Yrs Exp 0.00

Avg Yrs w/Firm 0.00

Risk Monitors 0

Avg Yrs Exp 0

Avg Yrs w/Firm 0.00


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 1


Superannuation 0

Public Fund 14


Found. & Endow. 2

Healthcare 2

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 86


Analysts 4


Total Employees 29

Legal Structure Partnership

Firm Background

Smith Graham & Co., Investment Advisors, L.P.Smith Graham was founded in 1990 in Houston, Texas and is one of the nation's largest minority-owned investment management firms. It has more than 25 years of experience managinginstitutional assets. Smith Graham is an independent, employee-owned, limited partnership. It is not affiliated with any other company or entity. Smith Graham has discretionary managementresponsibility for approximately $6 billion in assets. The firm has been registered with the SEC since March, 1990.

The firm has two offices: our headquarters are in Houston, Texas and we also have a full service office in New York, New York. The investment team and client service support for the SmallCap Value, Midcap Value and SMID Cap Value products are located in the New York office.

Smith Graham & Co., Investment Advisors,L.P.

11/20/2017

Alpha Plus Firm OverviewFirm InformationAddress 600 Travis, 6900 JPMorgan Chase Tower

Address ---

C i ty Houston




Website www.smithgraham.com

Phone 713.227.1100

Year Founded 1990



AUMTotal $5,601.33

Taxable $78.10



AccountsTotal 86

Taxable 2

Tax-Exempt 84

Institutional 86





% of Assets 2.65%





% of Assets 1.43%


% Parent Owned ---

% Publicly Held ---





First Name Lynda

Last Name DiBari

Phone 212.487.5104


Office LocationsCi ty Houston


Secondary Office #1: City New York

Secondary Office #1: State New York





Exhibit 19

Product FactsPrimary Universe eVestment US Core Plus Fixed Income





Product Structure ---


AUMTotal $105.64

Taxable $0.00

Tax-Exempt $105.64


AccountsTotal 1

Taxable 0

Tax-Exempt 1





% of Assets 0.00%





% of Assets 0.00%


Fixed Income Style Emphasis Core Plus

























Accounts 1


Smith Graham & Co., Investment Advisors,L.P.

11/20/2017

Alpha Plus Product Overview




Japan 0.00%

Asia ex-Japan 0.00%


Other 0.00%





A: Current 14.02%



B: Current ---

CCC/Caa: Current ---

CC/Ca: Current ---

C: Current ---

Distressed Debt: Current ---

Not Rated: Current ---

Other: Current ---


Avg Yrs Exp 19.00

Avg Yrs w/Firm 5.00

Research Analysts 2

Avg Yrs Exp 17.00

Avg Yrs w/Firm 5.00


Avg Yrs Exp 19.00

Avg Yrs w/Firm 5.00

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 1

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 1


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 29


Analysts 3


Total Employees 18


Firm Background

LM Capital Group, LLCLM Capital Group was founded in 1989 by Luis Maizel and John Chalker to provide fixed income investment management services to investors. The firm is an employee-owned minority business—with consistent senior management—servicing public funds, corporations, and foundations. By utilizing a long-term, global macroeconomic methodology to build portfolios, LM Capital providesclients with what it believes are attractive investment opportunities. Our proprietary portfolio construction process further allows us to weather the volatility of the global bond markets in orderto protect and grow assets for our clients over the long term. The firm also distinguishes itself by encouraging ongoing client communication with key professionals within the LM Capitalorganization, including access to senior management and portfolio managers. We partner with our clients to offer a boutique service model.

LM Capital Group, LLC 11/20/2017Opportunistic Core Firm Overview

Firm InformationAddress 750 B Street, Suite 3010

Address ---

C i ty San Diego




Website www.lmcapital.com

Phone 619.814.1401

Year Founded 1989



AUMTotal $4,892.22

Taxable $19.70



AccountsTotal 29

Taxable 2

Tax-Exempt 27

Institutional 29





% of Assets 0.64%





% of Assets 0.64%


% Parent Owned ---

% Publicly Held ---





First Name Laura

Last Name Hightower

Phone 619.814.1401


Office LocationsCi ty San Diego


Secondary Office #1: City Miami

Secondary Office #1: State Florida





Exhibit 19








AUMTotal $2,981.30

Taxable $0.00



AccountsTotal 15

Taxable 0

Tax-Exempt 15





% of Assets 0.00%





% of Assets 0.00%




Minimum Quality Issue B

Portfolio Holdings (Typical) ---











Current Term Structure Ladder











Accounts 15


LM Capital Group, LLC 11/20/2017Opportunistic Core Product Overview




Japan 0.00%

Asia ex-Japan 0.00%


Other 11.53%



AAA/Aaa: Current ---

AA/Aa: Current ---

A: Current 7.06%



B: Current 4.44%


CC/Ca: Current ---

C: Current ---



Other: Current ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) ---

Gained (MRQ) ---

Gained (2013) ---


Lost (2013) ---

Gained (MRQ) ---

Gained (2013) ---


Superannuation 0

Public Fund 12


Found. & Endow. 1

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 2014


Analysts 128

% Employee Owned ---



Firm Background

PIMCOPacific Investment Management Company LLC (“PIMCO”)* was founded in Newport Beach, California in 1971. PIMCO is one of the world's largest fixed income managers, with a presence inevery major bond market. PIMCO started as a subsidiary of Pacific Life Insurance Company to manage separate accounts for institutional clients. Today, PIMCO has offices in Newport Beach,New York, Singapore, Tokyo, London, Sydney, Munich, Zurich, Toronto, Hong Kong, Milan and Rio de Janeiro.

In 2000, PIMCO was acquired by Allianz SE (“Allianz”), a large global financial services company based in Germany. PIMCO operates as a separate and autonomous subsidiary of Allianz.

Throughout its 45-year history, PIMCO has grown through a focus on delivering high quality investment performance and client service, as well as investing in resources, capabilities, andinvestment talent to provide a broad array of investment solutions for clients globally. PIMCO continues to retain and attract key professionals, due to strong financial incentives and a richinvestment culture. PIMCO’s senior management is comprised of seasoned leaders with decades of PIMCO experience who have been instrumental to PIMCO’s growth and success in deliveringvalue to PIMCO’s clients.

* Includes PIMCO's global affiliates, as appropriate. PIMCO directly owns and controls PIMCO Investments LLC and may directly or indirectly own and control certain other global PIMCO entities.

PIMCO 11/20/2017Core Plus - Total Return Full Authority Firm Overview

Firm InformationAddress 650 Newport Center Dr

Address ---





Website www.pimco.com

Phone 949.720.6000

Year Founded 1971



AUMTotal $1,688,862.57

Taxable $1,318,650.92



AccountsTotal 2014

Taxable 985

Tax-Exempt 1029

Institutional 2010





% of Assets 0.00%





% of Assets 0.00%

Ownership Info% Employee Owned ---

% Parent Owned ---

% Publicly Held ---


% Female Owned ---



First Name Michael

Last Name Saracco

Phone 949-720-7848










Exhibit 19









Taxable $118,587.94



AccountsTotal 173

Taxable 37

Tax-Exempt 136





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotFixed Income Duration Emphasis Intermediate



Minimum Quality Issue B


Approach Towards CurrencyHedging ---




Fundamental CharacteristicsCurrent Cash Position -19.56%








Duration BreakdownDuration < 1 Yr -6.00%




Duration 7-10 Yrs -16.00%





Accounts 173


PIMCO 11/20/2017Core Plus - Total Return Full Authority Product Overview


United Kingdom -11.40%

Continental Europe -1.90%

Japan -9.00%

Asia ex-Japan -0.10%


Other 2.70%





A: Current 7.00%



B: Current 2.00%



C: Current 0.00%





Avg Yrs Exp 16.00

Avg Yrs w/Firm 8.00


Avg Yrs Exp 13.00

Avg Yrs w/Firm 6.00


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 7

Gained (MRQ) 8

Gained (2013) 2


Lost (2013) 0

Gained (MRQ) 7

Gained (2013) 9


Superannuation 0

Public Fund 31


Found. & Endow. 15

Healthcare 9

High Net Worth 0

Insurance 6

Wrap Account 1

Sub-Advised 27

Other 12


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 571


Analysts 88


Total Employees 649


Firm Background

TCWFounded in 1971 and based in Los Angeles, TCW manages a broad range of innovative, actively managed investment products that strive to enhance and protect clients’ wealth. TCW’s clientsinclude many of the largest corporate and public pension plans, financial institutions, insurance companies, endowments and foundations in the United States, as well as a substantial number ofinternational entities including central banks, sovereign wealth funds and private banks.

In 2001, TCW was acquired by Société Générale (SG), one of the largest global banking franchises with a presence in 85 countries. SG worked with TCW to grow and expand its global footprintfor a dozen years. The partnership was very productive, including in early 2010, TCW’s acquisition of Metropolitan West Asset Management, LLC (MetWest), a top-ranked fixed income assetmanager. As a result, key employees of MetWest assumed primary responsibility for the oversight of TCW’s fixed income mandates. MetWest is a wholly owned indirect subsidiary of The TCWGroup, Inc.

In February 2013, TCW’s management effected a management led buy-out of SG in partnership with The Carlyle Group. The Carlyle Group holds a 60% stake in the firm, with TCW managementand employees owning the balance of 40%, on a fully diluted basis. While The Carlyle Group is the technical majority owner, management negotiated governance provisions which ensure thatTCW’s managerial autonomy is preserved. Equity for the transaction came from TCW management and two Carlyle investment funds – Carlyle Global Financial Services Partners, a $1.1 billionfinancial services fund, and Carlyle Partners V, a $13.7 billion U.S. buyout fund.

The Carlyle transaction facilitated a management initiative to increase employee ownership. Prior to 2010, TCW employees did not have significant equity interests in the firm. Since the 2010acquisition of MetWest by TCW, employee ownership has continued to increase. Today, approximately 125 employees, including most of TCW’s key decision-making investment and otherprofessionals, are equity holders. TCW believes strongly that employee equity ownership aligns the interests of the decision-making employees with the interests of the firm and the firm’sclients, and creates a cohesive “ownership culture.”

TCW 11/20/2017TCW Core Plus Fixed Income Firm Overview

Firm InformationAddress 865 South Figueroa Street

Address ---

C i ty Los Angeles




Website www.tcw.com

Phone 213.244.0000

Year Founded 1971




Taxable $15,031.66



AccountsTotal 571

Taxable 73

Tax-Exempt 498

Institutional 520





% of Assets 1.34%





% of Assets 0.42%








First Name Leah

Last Name Kirste

Phone 213.244.0655


Office LocationsCi ty Los Angeles





Secondary Office #2: State Massachusetts


Secondary Office #3: State United Kingdom

Exhibit 19









Taxable $8,125.70



AccountsTotal 81

Taxable 6

Tax-Exempt 75





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotFixed Income Duration Emphasis Intermediate









Fundamental CharacteristicsCurrent Cash Position -1.66%


Current # of Bond Issues ---















Accounts 81


TCW 11/20/2017TCW Core Plus Fixed Income Product Overview




Japan 3.88%

Asia ex-Japan 0.48%


Other 0.02%





A: Current 18.56%



B: Current 0.53%



C: Current 0.00%





Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) ---

Gained (2013) 0


Lost (2013) 1

Gained (MRQ) ---

Gained (2013) 1


Superannuation 0

Public Fund 14


Found. & Endow. 5

Healthcare 12

High Net Worth 1

Insurance 1

Wrap Account 0

Sub-Advised 9

Other 3


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 23


Analysts 7


Total Employees 36


Firm Background

ProgressProgress was founded in 1990 as an independent, minority- and employee-owned Registered Investment Advisor. As a manager of emerging managers, Progress offers customized investmentsolutions to institutional clients seeking innovative sources of alpha. By investing in emerging managers, Progress creates diversified, risk-controlled portfolios while providing expert access toundiscovered investment talent.

In 1998, Progress became a wholly owned subsidiary of Liberty Financial Companies when it was acquired in a friendly transaction aimed at leveraging Liberty’s distribution channels and providingliquidity to Progress’ original founders who were at or near retirement. Before the benefits of the Liberty/Progress relationship could be realized, Liberty was acquired by Fleet Boston Financial in2001, at which time Progress determined it would once again pursue independence in order to regain control of its destiny and return the firm to its legacy as a minority-owned firm.

Progress achieved that goal in 2004, when its senior leadership team successfully completed a management buyback acquiring the firm in whole from Columbia Management Group, a subsidiaryof Bank of America, which acquired Fleet Boston Financial. Progress achieved the acquisition with the assistance of an outside institutional investor, the Massachusetts Bay TransportationAuthority Retirement Fund (MBTARF) who acquired a 40% stake in Progress alongside its management team. In 2008, Progress purchased MBTARF’s 40% equity stake in the firm, becoming100% employee-owned, and remains so to this day.

Progress 11/20/2017US Fixed Income Firm Overview

Firm InformationAddress 33 New Montgomery Street

Address Suite 1900

Ci ty San Francisco




Website www.progressinvestment.com

Phone 415.512.3480

Year Founded 1990



AUMTotal $6,814.00

Taxable $0.00



AccountsTotal 23

Taxable 0

Tax-Exempt 23

Institutional 23





% of Assets 0.04%





% of Assets 1.93%








First Name Linda

Last Name Cornett

Phone 415.512.3480


Office LocationsCi ty San Francisco








Exhibit 19






Product Structure Fund of Funds


AUMTotal $2,023.00

Taxable $0.00



AccountsTotal 7

Taxable 0

Tax-Exempt 7





% of Assets 0.00%





% of Assets 0.00%




Minimum Quality Issue C


Approach Towards CurrencyHedging ---










Current Term Structure Barbell











Accounts 7


Progress 11/20/2017US Fixed Income Product Overview




Japan 0.00%

Asia ex-Japan 0.00%


Other 0.00%


Credit QualityGovernment Guaranteed:Current ---



A: Current 10.67%



B: Current 4.26%



C: Current ---



Other: Current ---


Avg Yrs Exp 25.00

Avg Yrs w/Firm 8.00

Research Analysts 2

Avg Yrs Exp 13.00

Avg Yrs w/Firm 9.00


Avg Yrs Exp 0.00

Avg Yrs w/Firm 0.00

Risk Monitors 1

Avg Yrs Exp 16

Avg Yrs w/Firm 8.00


Lost (2013) 1

Gained (MRQ) 0

Gained (2013) 1


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 6


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 0


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 43803


Analysts 231



Legal Structure Private Corporation

Firm Background

Neuberger BermanFrom our inception, Neuberger Berman has worked with one goal: to build and protect the assets of our clients. Today, we continue to serve our clients with the same purpose, and with expandedcapabilities to meet all our clients' investment management needs.

Our commitment to investment management has deep roots. In 1939, renowned investor Roy Neuberger founded the firm to manage money for individuals and families. The firm thrived andgrew, earning a reputation for excellent performance and integrity.

In 1950, Neuberger Berman became one of the first firms to offer a no-load mutual fund to individual investors, and our mutual fund family has grown alongside the private client business. In1971, we launched a portfolio for institutions, marking our formal entry into the institutional investment business.

Neuberger Berman 11/20/2017Core Plus Firm Overview

Firm InformationAddress 1290 Avenue of the Americas

Address ---

C i ty New York




Website www.nb.com

Phone 212.476.9000

Year Founded 1939




Taxable $161,748.99



AccountsTotal 43803

Taxable 32992

Tax-Exempt 10811

Institutional 10249





% of Assets 0.52%





% of Assets 0.07%





% Female Owned ---



First Name Matthew

Last Name Malloy

Phone 212.476.9000


Office LocationsCi ty New York


Secondary Office #1: City Chicago

Secondary Office #1: State Illinois

Secondary Office #2: City Dallas

Secondary Office #2: State Texas



Exhibit 19








AUMTotal $3,989.40

Taxable $2,019.91



AccountsTotal 14

Taxable 3

Tax-Exempt 11





% of Assets ---





% of Assets ---



























Accounts 14


Neuberger Berman 11/20/2017Core Plus Product Overview




Japan 0.00%

Asia ex-Japan 0.00%


Other 1.34%





A: Current 7.52%



B: Current 1.39%



C: Current 0.00%





Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) ---

Gained (2013) 0


Lost (2013) 1

Gained (MRQ) ---

Gained (2013) 2


Superannuation 0

Public Fund 5


Found. & Endow. 4

Healthcare 0

High Net Worth 0

Insurance 1

Wrap Account 0

Sub-Advised 0

Other 1


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 2014


Analysts 128

% Employee Owned ---



Firm Background

PIMCOPacific Investment Management Company LLC (“PIMCO”)* was founded in Newport Beach, California in 1971. PIMCO is one of the world's largest fixed income managers, with a presence inevery major bond market. PIMCO started as a subsidiary of Pacific Life Insurance Company to manage separate accounts for institutional clients. Today, PIMCO has offices in Newport Beach,New York, Singapore, Tokyo, London, Sydney, Munich, Zurich, Toronto, Hong Kong, Milan and Rio de Janeiro.

In 2000, PIMCO was acquired by Allianz SE (“Allianz”), a large global financial services company based in Germany. PIMCO operates as a separate and autonomous subsidiary of Allianz.

Throughout its 45-year history, PIMCO has grown through a focus on delivering high quality investment performance and client service, as well as investing in resources, capabilities, andinvestment talent to provide a broad array of investment solutions for clients globally. PIMCO continues to retain and attract key professionals, due to strong financial incentives and a richinvestment culture. PIMCO’s senior management is comprised of seasoned leaders with decades of PIMCO experience who have been instrumental to PIMCO’s growth and success in deliveringvalue to PIMCO’s clients.

* Includes PIMCO's global affiliates, as appropriate. PIMCO directly owns and controls PIMCO Investments LLC and may directly or indirectly own and control certain other global PIMCO entities.

PIMCO 11/20/2017Unconstrained Bond Firm Overview

Firm InformationAddress 650 Newport Center Dr

Address ---





Website www.pimco.com

Phone 949.720.6000

Year Founded 1971



AUMTotal $1,688,862.57

Taxable $1,318,650.92



AccountsTotal 2014

Taxable 985

Tax-Exempt 1029

Institutional 2010





% of Assets 0.00%





% of Assets 0.00%

Ownership Info% Employee Owned ---

% Parent Owned ---

% Publicly Held ---


% Female Owned ---



First Name Michael

Last Name Saracco

Phone 949-720-7848










Exhibit 19

Product FactsPrimary Universe eVestment Global Unconstrained Fixed Income







AUMTotal $11,841.57

Taxable $8,109.73



AccountsTotal 40

Taxable 14

Tax-Exempt 26





% of Assets 0.00%





% of Assets 0.00%


Fixed Income Style Emphasis Other

Preferred Benchmark LIBOR - 3 Month















Duration BreakdownDuration < 1 Yr -28.00%






Duration > 20 Yrs -33.00%


Product Key FactsPreferred Benchmark LIBOR - 3 Month

Accounts 40


PIMCO 11/20/2017Unconstrained Bond Product Overview


United Kingdom -2.10%


Japan -14.40%

Asia ex-Japan 3.20%


Other 3.70%





A: Current 15.00%



B: Current 3.00%



C: Current 0.00%





Avg Yrs Exp 26.00

Avg Yrs w/Firm 9.00


Avg Yrs Exp 13.00

Avg Yrs w/Firm 6.00


Avg Yrs Exp ---

Avg Yrs w/Firm ---

Risk Monitors ---

Avg Yrs Exp ---

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 7

Gained (2013) 9


Superannuation 0

Public Fund 11


Found. & Endow. 4

Healthcare 3

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 5

Other 10


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 4586


Analysts 32


Total Employees 381


Firm Background

BlueBay Asset Management LLPBlueBay Asset Management (BlueBay) is a specialist fixed income manager focusing on sovereign and corporate debt in developed and emerging markets. The firm’s sole business is assetmanagement.

BlueBay provides asset management services to institutional investors, distribution networks and high net worth individuals. Our approach is characterised by a belief in the value of activemanagement, a strong investment process, the generation of attractive risk-adjusted returns and an emphasis on capital preservation for all our investment strategies.

BlueBay manages a range of absolute return-style portfolios across the following sub-asset classes of global fixed income markets:

• Investment grade debt

• High yield/distressed debt & loans

• Emerging market debt

• Convertible bonds

• Private lending

• Multi-credit

BlueBay was originally established to capitalise on strong secular growth trends in European corporate debt and emerging market debt.

The firm was founded in 2001 in London by Hugh Willis and Mark Poole, with financial support from Barclays Bank and Shinsei Bank. On 22 November 2006, BlueBay listed its shares on the

BlueBay Asset Management LLP 11/20/2017BlueBay Emerging Market Select Strategy Firm Overview

Firm InformationAddress 77 Grosvenor Street

Address ---

C i ty London


Zip/Postal Code W1K 3JR


Website www.bluebay.com

Phone +44 20 7389 3700

Year Founded 2001



AUMTotal $55,698.79

Taxable $0.00



AccountsTotal 4586

Taxable 0

Tax-Exempt 4586

Institutional 857





% of Assets 0.00%





% of Assets 0.00%








First Name Cenk

Last Name Turkinan

Phone +44 20 7389 3313




Secondary Office #1: City Stamford

Secondary Office #1: State Connecticut




Secondary Office #3: State Hong Kong

Exhibit 19

Product FactsPrimaryUniverse

eVestment Global Emerging Mkts Fixed Income -Blended Currency

GeographicRegion Global Emg Mkts

InceptionDate 11/30/2006


ProductDomicile ---

ProductStructure Direct Investment


AUMTotal $4,383.35

Taxable $0.00



AccountsTotal 99

Taxable 0

Tax-Exempt 99





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotFixed Income DurationEmphasis Intermediate

Fixed Income StyleEmphasis Other

Preferred Benchmark50% JPM EMBI Global Div & 50%JPM GBI-EM Glbl Div


Portfolio Holdings(Typical) ---

Approach TowardsCurrency Hedging Value Added








Average Maturity (Yrs) ---

Yield to Maturity ---


Average Quality Issue BB









Product Key FactsPreferredBenchmark

50% JPM EMBI Global Div & 50% JPM GBI-EM Glbl Div

Accounts 99

InvestmentFocus Long Only

BlueBay Asset Management LLP 11/20/2017BlueBay Emerging Market Select Strategy Product Overview




Japan 0.00%

Asia ex-Japan 0.00%

Emerging Mkts. ---

Other 0.00%





A: Current 8.58%



B: Current 28.54%



C: Current 0.33%





Avg Yrs Exp 17.00

Avg Yrs w/Firm 8.00

Research Analysts 9

Avg Yrs Exp 15.00

Avg Yrs w/Firm 5.00


Avg Yrs Exp 20.00

Avg Yrs w/Firm 9.00

Risk Monitors 0

Avg Yrs Exp 0

Avg Yrs w/Firm 0.00


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 29

Public Fund 0


Found. & Endow. 1

Healthcare 0

High Net Worth 0

Insurance 8

Wrap Account 0

Sub-Advised 0

Other 17


Supranationals 0

Sovereign Wealth 3

Exhibit 19



Accounts 113


Analysts 1


Total Employees 59

Legal Structure ---

Firm Background

Colchester Global Investors LimitedColchester is an independent investment management firm offering quality global and international bond services. Colchester believes in the benefits of specialisation and focus: a significantcompetitive advantage enjoyed by our firm is the greater diversity and added return potential generated by its unique use of high quality smaller country bond markets.

Colchester's rigorous application of its real yield investment strategy has underpinned the firm's success. Strength is drawn from the robustness of the real yield approach and from its timeproven results.

Colchester was founded by Ian Sims, Chairman and Chief Investment Officer, in 1999 and commenced managing client portfolios in February 2000. Ian was one of the premier global bondmanagers of the 1990s prior to founding Colchester, and the firm is built on the extensive experience of its senior partners who have all enjoyed long and successful careers in the industry.Colchester is majority-owned by its employees: we believe self-ownership allows constancy of purpose and an alignment of interest with those of the client. An asset growth policy is in place topromote the ongoing delivery of first class investment services.

Colchester Global Investors Limited 11/20/2017Colchester Local Markets Debt Fund Firm Overview

Firm InformationAddress 20 Savile Row

Address ---

C i ty London


Zip/Postal Code W1S 3PR


Website www.colchesterglobal.com

Phone 44 (20) 7292.6920

Year Founded 1999



AUMTotal $39,258.00

Taxable ---

Tax-Exempt ---


AccountsTotal 113

Taxable ---

Tax-Exempt ---

Institutional 113





% of Assets 1.77%





% of Assets 0.00%








First Name Mamak

Last Name Shahbazi

Phone 646.472.1801






Secondary Office #2: City Singapore

Secondary Office #2: State Singapore



Exhibit 19


eVestment Global Emerging Mkts Fixed Income - LocalCurrency




ProductDomicile ---

ProductStructure Direct InvestmentAccount and AUM Information

AUMTotal $8,557.00

Taxable ---

Tax-Exempt ---


AccountsTotal 20

Taxable ---

Tax-Exempt ---





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotFixed Income DurationEmphasis Intermediate

Fixed Income Style Emphasis Other

Preferred BenchmarkJPM GBI-EM Global DiversifiedUnhedged

Minimum Quality Issue BBB


Approach Towards CurrencyHedging Value Added











Average Quality Issue BBB







Duration > 20 Yrs ---


Product Key FactsPreferred Benchmark JPM GBI-EM Global Diversified Unhedged

Accounts 20


Colchester Global Investors Limited 11/20/2017Colchester Local Markets Debt Fund Product Overview




Japan 0.00%

Asia ex-Japan 0.00%

Emerging Mkts. ---

Other 0.00%




AA/Aa: Current ---

A: Current 35.00%



B: Current ---


CC/Ca: Current ---

C: Current ---



Other: Current ---


Avg Yrs Exp 24.00

Avg Yrs w/Firm ---

Research Analysts 1

Avg Yrs Exp 10.00

Avg Yrs w/Firm ---


Avg Yrs Exp 14.00

Avg Yrs w/Firm ---

Risk Monitors 3

Avg Yrs Exp 11

Avg Yrs w/Firm ---


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 8


Found. & Endow. 0

Healthcare 0

High Net Worth 1

Insurance 0

Wrap Account 0

Sub-Advised 7

Other 2


Supranationals 0

Sovereign Wealth 0

Exhibit 19



Accounts 1264


Analysts ---


Total Employees ---

Legal Structure ---

Firm Background

PGIM Fixed IncomePGIM Fixed Income is a global asset manager offering active solutions across all fixed income markets. The company has portfolio management and research teams in Newark, N.J.; London,Singapore and Tokyo. PGIM Fixed Income manages assets for institutional clients and retail investors worldwide and currently manages assets for 28 of the top Fortune 100 companies, 24 of the100 largest global pension funds, and several sovereign wealth funds, central banks, and large government entities.1

PGIM Fixed Income offers a range of traditional global broad market and sector-specific strategies, as well as a range of LIBOR-based strategies. The firm also has extensive experiencemanaging a variety of Liability Driven Strategies.

At PGIM Fixed Income we believe that research-driven security selection is the most consistent strategy for adding value to client portfolios. The firm complements that base strategy withactive sector rotation, duration management, and superior trade execution. Risk budgeting is central to this approach. Our extensive size and scale benefits our clients in our ability to have thenecessary resources to maintain large and deep research teams, implement world-class risk management systems, establish ourselves as a known entity to both corporate issuers and sell sideanalysts and add considerable value to our investment process in finding key opportunities for our investors.

PGIM Fixed Income is a well-resourced firm with disciplined research and investment processes and significant technology-based risk analytics. Our investment approach is supported by 256investment professionals based in the U.S., London, Tokyo, and Singapore. Seasoned portfolio management teams and extensive research capabilities—five regional macroeconomists, 95fundamental analysts, and 58 analysts in quantitative modeling, risk management, and portfolio analysis—provide deep, broad perspectives on the global fixed income markets. Senior investmentpersonnel average 28 years experience.

PGIM Fixed Income is the global asset manager primarily focused on public fixed income investments, whose United States business operates as a unit within PGIM, Inc. (formerly known asPrudential Investment Management, Inc.) (“PGIM”). PGIM is the largest investment adviser within Prudential Financial, Inc. (“PFI”). As of December 31, 2015, PGIM had $963 billion in assets undermanagement across their real estate, equity, public fixed income, and private fixed income businesses and is ranked 9th among IPE’s top 400 asset managers.2

1 Source of Global Pension Fund data: IPE Top 1000 Global Institutional Investors - 2015 and S&P’s MMD Top 100 Global Pensions. Source of Fortune 500 list: Fortune issued June 4, 2015.2 Source: IPE Research-Top 400 Asset Managers, June 2015, based on 12/31/2014 assets under management.

PGIM Fixed Income 11/20/2017EM Debt - Hard/Local Currency Blend Firm Overview

Firm InformationAddress 655 Broad St.

Address 8th Floor

C i ty Newark

State/Province New Jersey



Website http://www.pgimfixedincome.com

Phone 973.367.9203

Year Founded 1875




Taxable $421,699.33



AccountsTotal 1264

Taxable 293

Tax-Exempt 971

Institutional 1169





% of Assets 0.70%





% of Assets 0.11%








First Name Brad

Last Name Blalock

Phone 973-367-5431


Office LocationsCi ty Newark

State/Province New Jersey

Secondary Office #1: City Singapore

Secondary Office #1: State Singapore





Exhibit 19


eVestment Global Emerging Mkts Fixed Income -Blended Currency


InceptionDate 12/01/2007


ProductDomicile ---

ProductStructure Direct Investment


AUMTotal $10,839.68

Taxable $116.84



AccountsTotal 16

Taxable 1

Tax-Exempt 15





% of Assets 0.00%





% of Assets 0.00%

Strategy SnapshotFixed Income DurationEmphasis Core/All Durations

Fixed Income StyleEmphasis Core/Aggregate

Preferred Benchmark50% JPM GBI-EM Global/50%EMBI Global



Approach Towards CurrencyHedging Value Added











Average Quality Issue BB







Duration > 20 Yrs ---


Product Key Facts

Preferred Benchmark50% JPM GBI-EM Global/50% EMBIGlobal

Accounts 16


PGIM Fixed Income 11/20/2017EM Debt - Hard/Local Currency Blend Product Overview




Japan 0.00%

Asia ex-Japan 0.00%

Emerging Mkts. ---

Other 0.21%




AA/Aa: Current ---

A: Current 14.25%



B: Current 23.35%


CC/Ca: Current ---

C: Current ---



Other: Current ---


Avg Yrs Exp 18.00


Research Analysts 7

Avg Yrs Exp 14.00

Avg Yrs w/Firm 6.00


Avg Yrs Exp 15.00


Risk Monitors 51

Avg Yrs Exp 14



Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Lost (2013) 0

Gained (MRQ) 0

Gained (2013) 0


Superannuation 0

Public Fund 7


Found. & Endow. 0

Healthcare 0

High Net Worth 0

Insurance 0

Wrap Account 0

Sub-Advised 0

Other 1


Supranationals 0

Sovereign Wealth 0

Exhibit 19

To: Investment Committee From: Douglas C. Wesley, CFA Date: November 22, 2017 Re: Report to the Governor and General Assembly

Regarding Use of Emerging Investment Managers

As required per Public Act 96-0006, the Report to the Governor and General Assembly, on the Use of Emerging Investment Managers, has been prepared by staff and will be provided to the Trustees at the December 7, 2017 Investment Committee meeting. Upon receipt by the Board, the document will be distributed to the Governor and legislators prior to January 1, 2018, and will be posted on the SURS web site.

As disclosed in the Report, at the end of fiscal year 2017, $5.1 billion, or 28.0% of SURS’ $18.1 billion total investment portfolio is managed by firms owned by minorities, women or persons with a disability. This represents an increase of approximately $900 million during the past year.

The Report also includes goals which are stated in the Board approved Investment Policy regarding partnership with firms owned by minorities, females, or persons with a disability (MFDB). SURS remains committed to providing opportunities for qualified MFDB investment management and broker/dealer firms. The Board of Trustees has maintained a longstanding policy of utilizing capable and deserving MFDB firms that can add value to the SURS Investment Program.

Exhibit 20

REPORT TO GOVERNOR AND GENERAL ASSEMBLY

USE OF EMERGING INVESTMENT MANAGERS

December 1, 2017

State Universities Retirement System of Illinois 1901 Fox Drive, P.O. Box 2710

Champaign, IL 61820

As Required by Public Act 96-0006

Exhibit 21

Exhibit 21

(This page intentionally left blank)

Exhibit 21

TABLE OF CONTENTS Section Page Introduction 1 Overview of SURS Investment Program 1 Investment Manager Selection 2 Dedicated Program for MFDB Investment Managers 3 Current Role of MFDB Investment Managers 6 Current Role of Illinois-Based Investment Managers 7 Current Role of MFDB Brokerage Firms 8 Public Act 96-0006 9 Conclusion 11 Appendices Tab/Exhibit SURS Board Policies Tab I

• Emerging Investment Managers and Broker/Dealers Policy A • SURS Inclusion Policy B

Investment Managers Tab II

• Progress Investment Management Company (Manager of Managers) C • SURS Manager Diversity Program D • Schedule of MFDB Investment Management Firms E • Schedule of Illinois-Based Investment Managers F • Goals & Actual Utilization of Active Emerging Investment Managers

(Classified by Minorities, Women and Persons with a Disability) G

Exhibit 21

1

INTRODUCTION

The State Universities Retirement System of Illinois (SURS) is committed to

providing opportunities for emerging investment managers1, including those firms owned

by minorities, females and persons with a disability. SURS has taken and is continuing

to take important and appropriate actions to provide increased opportunities for minority-,

female- and persons with a disability-owned (MFDB) investment managers. This

program has been and will continue to be of utmost importance to the SURS Board of

Trustees and has received the highest priority.

The SURS Board of Trustees has adopted a Policy seeking increased inclusivity

in the investment program. The most recent version of the Policy, approved by the Board

in June 2017, can be found in Tab 1, Exhibit A.

OVERVIEW OF SURS INVESTMENT PROGRAM

As of June 30, 2017, the SURS investment portfolio is valued at approximately

$18.1 billion. SURS has engaged the services of 50 investment managers in nine major

asset classes - U.S. Equities, Non-U.S. Equities, Global Equities, Private Equity, Fixed

Income, Real Estate, Commodities, Hedged Strategies, and Infrastructure. These

investment managers have been hired through a competitive search process to identify the

best qualified managers in each asset class. Managers are selected to invest their

portfolios in a specific strategy or style. More generally, SURS seeks a diversified mix

of investment managers, each having different styles in different asset classes. Thirty-

two percent (16 of 50) of SURS’ current investment managers are minority-, female- or

persons with a disability-owned businesses.

1 The phrase "emerging investment manager" is used throughout the text of this document. The current definition applicable to SURS is found in 40 ILCS 5/1-109.1(4) and is defined as "a qualified investment adviser that manages an investment portfolio of at least $10,000,000 but less than $10,000,000,000 and is a ‘minority owned business’, ‘female owned business’ or ‘business owned by a person with a disability’ as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.”

Exhibit 21

2

INVESTMENT MANAGER SELECTION

SURS’ manager search process begins with defining the need for a specific type

of investment to augment the risk/return profile of the overall portfolio, and presenting

the rationale to the Board of Trustees for approval. Generally, once approval has been

obtained for retaining investment managers, the investment staff, along with SURS’

investment consultant, conducts a search.

In April 2009, in accordance with Public Act 96-0006, the SURS Board of

Trustees adopted an investment procurement policy. The selection and appointment of

an investment adviser or consultant for investment services must be the result of a

competitive process that is substantially similar to the process required for the

procurement of professional and artistic services under the Illinois Procurement Code.

Section VIII of the Investment Policy, entitled, “Selection and Retention”, includes the

selection criteria and search process established by the Board of Trustees. SURS does

not use any criteria that would be considered a barrier to an MFDB manager such as a

minimum number of years in business or a minimum level of assets under management.

If an emerging investment manager meets the criteria established for a specific search,

then that emerging investment manager shall receive an invitation by the Board or

Investment Committee to present his or her firm for final consideration of a contract. In

the case where multiple emerging investment managers meet the criteria of the search,

the internal investment staff may choose the most qualified firm(s) to present to the

Board or Investment Committee.

Exhibit 21

3

DEDICATED PROGRAMS FOR MFDB INVESTMENT MANAGERS

SURS has managed a dedicated program for minority-, female- and persons with

a disability-owned investment management firms since fiscal year 1997. Initially, SURS

utilized the services of external manager of emerging managers providers, such as

Progress Investment Management Company. In 2004, SURS expanded its program with

the launch of an internal manager of emerging managers program, the Manager Diversity

Program.

Progress Investment Management Company

Progress Investment Management Company, as manager of emerging managers

provider, selects, retains, and compensates the investment managers that are managing

the assets within their program. By teaming with Progress, SURS is able to establish a

relationship with a larger number of emerging investment managers. Currently, the

Progress program consists of 12 managers across publicly traded non-U.S. equities, core

fixed income, and emerging market debt. As of June 30, 2017, all 12 managers providing

investment services to SURS through Progress Investment are MFDB investment

managers. Tab II, Exhibit C, details the managers that are a part of the Progress program.

The performance of these managers is closely monitored by SURS staff, with the goal of

identifying highly successful managers that can potentially be funded directly by SURS.

Progress also partners with SURS staff to share research in an effort to enhance the

System’s line-up of deserving MFDB investment managers.

As of June 30, 2017, the total value of assets under management by Progress is

$428 million.

Exhibit 21

4

Manager Diversity Program

• Creation of the MDP

The Manager Diversity Program (MDP), initially known as the Manager

Development Program, was created by the SURS Board of Trustees in March 2004 as

one of four initiatives2 designed to further increase the utilization of MFDB investment

management firms. As of June 30, 2017, the program consists of 14 managers with 16

assignments across domestic equities, international equities, fixed income, Treasury

Inflation-Protected Securities (TIPS), private equity, and real estate. Investment firms

selected for participation in the MDP contract directly with SURS. Ultimately, the goal

of the MDP is to identify highly successful managers and meaningfully increase the

firm’s allocation, if consistent with the structure of the overall SURS portfolio.

• Expansion of the MDP

Due to the success of the MDP, the program has significantly expanded since its

creation. As the chart below illustrates, MDP assets have grown from $127.4 million in

fiscal year 2005 to approximately $3.0 billion at the end of fiscal year 2017. As part of

the expansion, the structure has been strategically modified to be more consistent with the

overall SURS investment program, including allocations to private equity and real estate.

2 The other three initiatives involved creation of a private equity fund-of-funds focused on minority- and female-owned partnerships, a search for minority- or female-owned equity index fund providers, and expansion of the existing roster of minority- and female-owned firms. Each of the four initiatives has been successfully implemented.

$127.4$211.3$265.5 $332.3 $324.8

$565.1$908.6

$1,211.6$1,498.8

$1,804.8

$2,567.8$2,677.8

$2,957.0

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

$3,000.00

$3,500.00

$Mill

ions

FY'05

FY'06

FY'07

FY'08

FY'09

FY'10

FY'11

FY'12

FY'13

FY'14

FY'15

FY'16

FY'17

Manager Diversity Program AssetsFY 2005 - FY 2017

Exhibit 21

5

The MDP continues to expand, as discussed below.

• SURS committed $100 million to Muller & Monroe for a new MFDB mandate.

This Board-approved allocation will assist SURS in meeting its goal that 20% of

new commitments in alternative investments be awarded to qualified firms owned

by minorities, females and persons with a disability, as documented in the

Investment Policy. The mandate will focus exclusively on private equity funds

with greater than 51% ownership held by minorities, females, or persons with a

disability, as defined by statute.

• The Private Equity Emerging Manager Providers continue to make commitments

to qualified private equity funds.

• The Real Estate Emerging Manager Provider continues to make commitments to

qualified real estate funds.

• In October 2015, the Board retained two firms to provide hedge fund-of-fund

services. While not directly a component of the MDP, each hedge fund-of-funds

provider will have a goal that at least 20% of the SURS assets be allocated to funds

owned by persons of diversity.

• In June 2017, SURS initiated a search for emerging U.S. equity managers resulting in

the recent hiring of two emerging managers, with new allocations totaling $150

million.

Tab II, Exhibit D, details the managers in the MDP along with the current level of

assets under management for the System. As of June 30, 2017, the total assets under

management in the Manager Diversity Program are approximately $3.0 billion, an

increase in market value of approximately $300 million from last year’s report.

The MDP is managed with program oversight by SURS internal investment staff,

allowing investment managers to have a direct contractual relationship with SURS.

Significant staff resources continue to be dedicated to the construction, management, and

evaluation of the program.

Exhibit 21

6

CURRENT ROLE OF INVESTMENT MANAGERS OWNED BY

MINORITIES, FEMALES, AND PERSONS WITH A DISABILITY

Defined Benefit Plan

SURS investment program totaled $18.117 billion as of June 30, 2017. Of this

amount, $5.07 billion, or 28.0%, is managed by investment management firms owned by

minorities, females or persons with a disability. SURS assets with MFDB firms have

grown steadily over time, as seen in the chart that follows.

SURS Assets with MFDB Investment Management Firms

FY 1994 – FY 2017

1.8%0.5%

1.5%1.6%

1.6%

3.1%4.3%

4.3%4.9%

5.5%10.5%

13.4%14.1%

13.4% 14.4%

16.7% 19.3%

23.3%

25.1%

24.5%

25.9%

24.7%

28.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

% o

f Tot

al F

und

Fiscal Year Ending

Exhibit 21

7

Tab II, Exhibit E includes name and address information for SURS’ MFDB investment

managers along with the percent of assets managed by the various investment

management firms.

Defined Contribution Plan

Public Act 90-448 established a defined contribution retirement plan for SURS

participants. This plan, known as the Self-Managed Plan (SMP), became available to

SURS participants on April 1, 1998, and marked its nineteenth anniversary on April 1,

2017. There are over 20,400 participants currently invested and assets are approximately

$2.16 billion. SURS has retained two investment service providers which offer mutual

funds and variable annuity products to plan participants. At the end of fiscal year 2017,

there were twenty-seven investment options available to the participants, one of which is

managed by a minority-owned firm. As of June 30, 2017, plan participants have

allocated over $35 million to this particular fund.

CURRENT ROLE OF

ILLINOIS-BASED INVESTMENT MANAGERS

In addition to our commitment to minority-, female- and persons with a disability-

owned firms, SURS is committed to Illinois-based firms. Historically, SURS has

partnered with local investment management firms to a significant extent. As of June 30,

2017, SURS had retained eleven Illinois-based investment management firms, with

collective assets managed for SURS of approximately $3.7 billion (20.3% of SURS Total

Fund). Four of the eleven firms are either minority- or female-owned. Tab II, Exhibit F

details the Illinois-based firms utilized by SURS.

Exhibit 21

8

CURRENT ROLE OF MFDB BROKERAGE FIRMS

SURS requires all of its public markets investment managers to use minority-,

female- or persons with a disability-owned (MFDB) brokerage firms. Annually, a

communication is distributed to the investment service providers regarding the use of

MFDB brokerage firms. Throughout the year, SURS receives numerous inquiries from

MFDB brokerage firms regarding the opportunity to execute trades for the portfolio.

SURS investment staff, at a minimum, meets with interested firms when requested and

provides a listing of its current investment managers, which is available online at

www.surs.org. If requested, SURS staff will send a letter of introduction along with the

firm’s marketing materials.

Since fiscal year 2004, SURS has had in place a brokerage policy designed to

increase the utilization of MFDB brokerage firms, subject to best execution. The policy

is asset class-specific and calls for SURS’ investment managers to meet certain minimum

levels of usage over continually rolling twelve-month periods. The current version of the

brokerage policy is included in Tab I, Exhibit A. Summary goals for the utilization of

minority-owned broker/dealers have been established for the aggregate U.S. equity, non-

U.S. equity and fixed income asset classes as shown in the table below. SURS seeks to

consistently exceed these high level goals while achieving best execution.

Asset Class Goal

U.S. Equity 30.0%

Non-U.S. Equity 15.0%

Fixed Income 20.0%

SURS continuously monitors managers’ compliance with this revised policy and

has established a series of consequences for those managers who repeatedly fail to meet

expectations, up to and including termination. Initially, a follow-up letter will be

distributed to the investment managers not achieving the minimum level of MFDB

Exhibit 21

http://www.surs.org/

9

broker/dealer usage. The investment managers are expected to achieve the desired levels

over continually rolling twelve-month periods. Only trades executed directly with

minority-owned broker/dealers will be considered in the achievement of these goals. The

table that follows lists the goals for each asset class as well as actual utilization for the

year ending June 30, 2017.

Trading with Firms Owned by Minorities, Females or Persons with a Disability

Year Ending June 30, 2017

Asset Class

Actual Utilization

Goal

EQUITY U.S. Equity 50.99% 30.0% Non-U.S. Equity 35.33% 15.0% Global Equity 32.00% 20.0% FIXED INCOME Fixed Income 30.42% 20.0%

In the aggregate, SURS investment managers are currently exceeding the

minimum expectations levels established by the Board of Trustees. SURS, on an

ongoing basis, continues to emphasize the importance of this program to all of its new

and existing investment managers, and given the established minimum levels of

utilization, expects to see continued meaningful usage of MFDB brokers in future years.

PUBLIC ACT 96-0006

On April 3, 2009, Governor Quinn signed into law Public Act 96-0006 (PA 96-

0006), which addresses pension ethics and reform. The legislation required the

development of numerous diversity policies.

• Quantifiable Goals for Management of Assets

First, P.A. 96-0006 requires the development of quantifiable goals for the

management of assets in specific asset classes by emerging investment managers.

Annually, the Board of Trustees reviews and approves the Investment Policy, which

includes, among other things, goals for utilization of emerging investment managers

Exhibit 21

10

owned by minorities, females, and persons with a disability.3 A table highlighting these

goals as well as the percentage of assets under management for each of the three separate

goals, as of June 30, 2017, can be found as Tab II, Exhibit G.

In September 2014, the Board established a new goal that 20% of total assets be

managed by MFDB investment managers meeting the statutory definition of a minority-

owned business. As of June 30, 2017, 22.9% of total assets were managed by MFDB

firms meeting the statutory definition. This new goal is in addition to the existing goal

that 25% of total actively managed assets be managed by MFDB firms. Currently, 26.6%

of actively managed assets are managed by MFDB firms. SURS strives, on an ongoing

basis, to improve and increase its relationships with MFDB managers and broker/dealers.

Section XIII of the Investment Policy, entitled, “Emerging Investment Managers

and Broker/Dealers”, is attached as Tab I, Exhibit A for your review. Section XIII also

contains language encouraging investment managers to use emerging investment

managers as subcontractors when the opportunity arises. A list of the names and

addresses of the minority-, female- and persons with a disability-owned investment

managers utilized by SURS is included as Tab II, Exhibit E. Actions undertaken to

increase the use of emerging investment managers were previously discussed in the

section entitled, “Dedicated Programs for Emerging Investment Managers.”

• Goals for Increasing Diversity of Fiduciaries

• Goals for Utilization of Businesses Owned by Minorities, Females, and Persons

with a Disability

Public Act 96-0006 also requires the development of goals for increasing the

diversity of fiduciaries and for utilization of businesses owned by minorities, females,

and persons with a disability. The Board of Trustees adopted an Inclusion Policy in

December 2009 to establish guidelines for inclusion of minority, women or disabled owned

3 P.A. 96-0006 requires the establishment of “3 separate goals for (i) emerging investment managers that are minority owned businesses; (ii) emerging investment managers that are female owned businesses; and (iii) emerging investment managers that are businesses owned by a person with a disability.”

Exhibit 21

11

businesses in SURS procurement processes consistent with 40 ILCS 5/1-109 and 40 ILCS

5/1-109.1. A copy of the SURS Inclusion Policy is included as Tab I, Exhibit B. The goal

adopted at that time for all contracts and purchases from businesses owned by minorities,

women, and persons with a disability was 12%. The goals have been subsequently reviewed

and increased over time, as shown in the table below.

History of SURS’ Vendor Diversity Goals

Date Vendor Diversity Goal

December 2009 12%

FY 2012 20%

FY 2013 25%

FY 2014 25%

FY 2015 25%

FY 2016 25%

FY 2017 25%

For Fiscal Year 2017, 13.2% of the contracts and purchases included businesses owned by

minorities, women and persons with a disability, falling short of the goal of 25%. The plan

for Fiscal Year 2017 is to maintain the goal at 25%, with the intent to continue expanding

our minority-, female-, and persons with a disability-owned vendor group. The SURS

staff will continue to be proactive during Fiscal Year 2018 in seeking minority-, female-,

and persons with a disability-owned businesses in our procurement opportunities.

• Goals for Increasing the Utilization of Minority Broker-Dealers

Public Act 96-0006 requires the adoption of a policy that sets forth goals for

increasing the utilization of MFDB broker-dealers. As mentioned previously, the Board

of Trustees has adopted such a policy (Tab I, Exhibit A). Actions undertaken to increase

the use of minority broker-dealers were previously discussed in detail in the section

entitled, “Current Role of MFDB Brokerage Firms.”

Exhibit 21

12

CONCLUSION

SURS places the utmost degree of importance on promoting diversity among its

investment advisors and investment professionals. SURS is an active member in the

National Association of Securities Professionals (NASP), and the Association of Asian

American Investment Managers (AAAIM), which promote diversity in the investment

industry. In addition, meaningful goals have been established for the use of investment

management firms owned by minorities, females, and persons with a disability in each

asset class. SURS has significantly increased assets with MFDB firms over the past

several years. Emphasis will continue to be placed on brokerage activity with minority-,

female- or persons with a disability-owned (MFDB) firms, especially with regard to

increasing direct trade execution activity. SURS looks forward to continued

implementation of the strategies developed to date and further strengthening of the

relationships already in place with firms owned by minorities, females or persons with a

disability.

Exhibit 21

Exhibit A

State Universities Retirement System Emerging Investment Managers and Broker/Dealers Policy

Section XIII of SURS Investment Policy (06/2017)

XIII. Emerging Investment Managers, MFDB Managers and Minority-Owned Broker/Dealers

SURS is committed to providing opportunities for Emerging Investment Managers and Minority Owned Broker/Dealers. SURS is also committed to providing ongoing opportunities for minority-, female-, and persons with a disability-owned (“MFDB”) Managers that have advanced beyond the statutory definition of Emerging Investment Managers. In determining the status of a business enterprise, SURS will use the definitions found in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act, 30 ILCS 575/2(A), (B).

The Illinois Pension Code, in 40 ILCS 5/1-109.1, encourages the Board to use Emerging Investment Managers in managing the System’s assets to the greatest extent feasible within the bounds of financial and fiduciary prudence, and to take affirmative steps to remove any barriers to the full participation of Emerging Investment Managers in investment opportunities afforded by the System. Furthermore, in accordance with the Illinois Pension Code, SURS encourages its Fund-of-Fund Managers to use Emerging Investment Managers as subcontractors when the opportunity arises.

A. Goals for Utilization of Emerging Investment Managers and MFDB

Managers Beginning January 1, 2016, the Illinois Pension Code, in 40 ILCS 5/1-109.1, established aspirational goals of 20% for pension funds, with respect to assets under management by Emerging Investment Managers and the percentage number of MFDB Managers. Since late 2014, the Board (subject to its fiduciary responsibility) has established goals for both the percent of assets under management and actively managed assets under management by Emerging Investment Managers. Furthermore, with the intent of having MFDB Managers significantly represented in each broad Asset Class and not concentrated in any particular Asset Class, the Board has established additional goals for actively managed assets specific to Minorities, Females, and Persons with Disabilities. A summary of the Board’s goals are set forth in Appendix 8. These goals shall be reviewed annually.

B. Goals for Utilization of Minority-Owned Broker/Dealers The Board has set minimum expectations for the use of qualified Broker/Dealers that meet the definition of a minority-owned business, female-owned business or a business owned by a person with a disability (“Minority-owned Broker/Dealer”) by the System’s Managers. Only trades executed directly with Minority-owned

Exhibit 21

Exhibit A

Broker/Dealers will be considered in the achievement of these goals. Summary goals for Minority-owned Broker/Dealer Utilization have been established for the aggregate U.S. equity, Non-U.S. Equity and Fixed Income Asset Classes as set forth in Appendix 9. SURS seeks to have its Managers consistently meet or exceed these goals, while achieving best execution. In order to achieve the aggregate U.S. Equity, Non-U.S. Equity and Fixed Income goals, minimum expectations have been established for individual Managers within a number of Sub-Asset Classes. Subject to best execution, SURS requires its Managers to meet the minimum expectations set forth in Appendix 10 for each rolling twelve (12) month period. Reporting Guidelines Each Manager will submit a compliance report within 30 days after March 31, June 30, September 30 and December 31 of each year. Reporting will be monitored over a rolling twelve-month period. Consequences of Non-Compliance Failure to meet Minority-owned Broker/Dealer Utilization Goals will lead to the following:

1) Staff notification to the non-compliant Manager; 2) Placement of the Manager on Reassessment status;

3) Staff examination of reasons for non-compliance; and

4) Remediation plan acceptable to the Staff or recommendation to the Board to

Terminate. C. Manager Diversity Program

Program Description SURS has implemented a Manager Diversity Program (“MDP”) to identify highly successful MFDB firms. The criteria used to determine the minimum qualifications of Potential Managers to be selected for an assignment and the search process is discussed in Section VII., 2 entitled “Investment Manager Selection.” Manager Benchmarks are identified in the Manager Guidelines for each Manager in the program. Benchmarks and Performance Targets for the MDP for each applicable Asset Class are the same as those set forth in the applicable Appendix. Managers in the MDP will be evaluated in the same manner as that set forth in Section VII (‘Selection and Retention’). Managers will be placed on Reassessment status as described in Section VII. Termination decisions will follow the guidelines set forth in Section VIII (‘Investment Manager Termination Guidelines’). An evaluation of each Manager shall be conducted annually.

D. Manager-of-Managers Program

Exhibit 21

Exhibit A

Program Description SURS utilizes a Manager-of-Managers program, overseen by SURS Staff. The program’s primary goal is to identify MFDB Managers that will be initially awarded smaller allocations within the program. Staff may recommend, for the Board’s approval, one or more Manager-of-Managers to play an active role in identifying emerging MFDB Managers and maintain an ongoing involvement in the evaluation and performance oversight of such Managers. Staff shall work with the Manager-of-Managers to identify, recruit, and monitor Managers in the program. Graduation Program On an annual basis, SURS Staff and the Manager-of-Managers will identify one underlying Manager to be considered for a meaningful, direct allocation. The following factors are considered in determining when an underlying Manager should be awarded a larger allocation in the SURS Portfolio: • Acceptable measure of performance over a three year period; • Stability in Manager’s organization; • Institutional quality infrastructure; • Growth in Assets Under Management; • Confidence in Manager’s investment process; • Meeting its Performance Target; and • Product Fit. In addition to the factors mentioned above, the needs of the overall SURS investment program will be considered. Notwithstanding this provision, the Board, in its sole discretion, may decide not to make any award in any given year, if it determines that such an allocation would not be in the best interests of the Members.

Initially adopted December 8, 2006; Revised April 26, 2007; September 21, 2007; September 12, 2008; April 23, 2009; September 11, 2009; December 2, 2009; September 3, 2010; September 16, 2011; October 25, 2012; September 13, 2013, September 19, 2014; September 11, 2015; December 9, 2016; June 9, 2017.

Exhibit 21

Exhibit B

State Universities Retirement System (SURS) Inclusion Policy

(09/11/2015) The purpose of this policy is to establish a framework for the inclusion of businesses owned by minorities, females, and persons with a disability in SURS procurement processes and for the inclusion of increased diversity of SURS fiduciaries, consistent with 40 ILCS 5/1-109 and 40 ILCS 5/1-109.1. The goals of this policy are to:

• promote competitive utilization of businesses owned by minorities, females, and persons with a disability in SURS contracts and services; and

• advance racial, ethnic, and gender diversity of SURS fiduciaries, including consultants and senior staff.

Policy

SURS is responsible for the prudent administration of SURS members’ trust fund. SURS strives to insure that members and taxpayers receive the maximum value for each dollar spent. To this end, SURS recognizes that promoting diversity of fiduciaries and vendors provides an open, competitive and diverse business environment.

SURS procurement and employment processes will further diversity in vendors and fiduciaries, including consultants and senior staff.

SURS employment processes to promote racial, ethnic and gender diversity of SURS fiduciaries, including senior staff must be developed to work in tandem with existing State University Civil Service System law when appropriate. To this end, SURS is committed to the ongoing efforts to seek job candidates from underrepresented groups, bring them into the organization, and offer additional growth/leadership opportunities with the intent of creating mutually beneficial long-term employment partnerships.

SURS procurement process includes a concerted effort to attract qualified minority, female owned business enterprises, and businesses owned by a person with disability (as defined by the Business Enterprise for Minorities, Females, and Persons with Disabilities Act: collectively, “MWDBE”) to participate in the procurement process. SURS further commits to the objective evaluation of all qualified businesses regardless of race, gender or handicap in fair consideration of all suppliers and consultants in the acquisition of goods and services.

Exhibit 21

Exhibit B

SURS stresses its goal of inclusion of MWDBE firms among prospective providers of purchased goods and services. Special efforts will be made to insure identification of eligible firms for inclusion in the bid process, including monitoring of MWDBE-related listings to identify possible MWDBE contractors and service providers. MWDBE firms will be identified using resources such as the United States Small Business Administration, Illinois Central Management Services Business Enterprise Program and other public agency resources. SURS will seek new ways to expand our efforts to do business with MWDBE suppliers and consultants.

If necessary, SURS will take proactive action to ensure that certified minority-owned, women-owned and disabled-owned business enterprises are provided notice of, and given the opportunity to demonstrate their ability to provide products and services at competitive prices. SURS staff who either directly or indirectly determine procurement needs or procurement decisions will seek and encourage MWDBE businesses to submit bids each time SURS publishes a request for bids or proposals.

SURS contracts require vendors to avoid unlawful discrimination in employment and to assure equality of employment opportunity and compliance with the Illinois Department of Human Rights' regulations concerning equal employment opportunities and affirmative action.

Pursuant to 40 ILCS 5/1-109.1 (10) SURS shall set an aspirational goal of no less than 20% utilization of businesses owned by minorities, females, and persons with disabilities of contracts awarded for “information technology”, “accounting services”, “insurance brokers”, “architectural and engineering services”, and “legal services”. This information will be tracked, but is not required to be reported.

SURS has set a goal of 25% for purchases from businesses owned by minorities, women, and persons with a disability as a share of all of its contracts and purchases. This information will be tracked by the Chief Financial Officer and reported annually as required by Public Act 96-0006.

SURS has set a goal to promote diversity from the top down and the bottom up to ensure a culture of inclusivity. SURS will also recruit from a diverse, qualified pool of potential applicants to increase the racial, ethnic, and gender diversity of its senior staff. This information will be tracked by the Director of Human Resources and reported annually as required by Public Act 96-0006.

Exhibit 21

Exhibit B

(30 ILCS 575/2)

Sec. 2. Definitions.

(A) for the purpose of this Act, the following terms shall have the following definitions:

(1) "Minority person" shall mean a person who is a citizen or lawful permanent resident of the United States and who is any of the following:

(a) American Indian or Alaskan Native (a person having origins in any of the original peoples of North and South America, including Central America, and who maintains tribal affiliation or community attachment).

(b) Asian (a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian, including, but not limited to, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam).

(c) Black or African American (a person having origins in any of the black racial groups in Africa). Terms such as “Haitian” or “Negro” can be used in addition to “Black or African American”.

(d) Hispanic or Latino (a person of Cuban, Mexican, Puerto Rico, South or Central American, or other Spanish Culture or origin, regardless of race).

(e) Native Hawaiian or Other Pacific Islander (a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands).

(2) "Female" shall mean a person who is a citizen or lawful permanent resident of the United States and who is of the female gender.

(2.05) "Person with a disability" means a person who is a citizen or lawful resident of the United States and is a person qualifying as being disabled under subdivision (2.1) of this subsection (A).

(2.1) "Disabled" means a severe physical or mental disability that:

(a) results from: amputation, arthritis, autism, blindness, burn injury, cancer, cerebral palsy, Crohn's disease, cystic fibrosis, deafness, head injury, heart disease, hemiplegia, hemophilia, respiratory or pulmonary dysfunction, an intellectual disability, mental illness, multiple sclerosis,

Exhibit 21

Exhibit B

muscular dystrophy, musculoskeletal disorders, neurological disorders, including stroke and epilepsy, paraplegia, quadriplegia and other spinal cord conditions, sickle cell anemia, ulcerative colitis, specific learning disabilities, or end stage renal failure disease; and

(b) substantially limits one or more of the person's major life activities.

Another disability or combination of disabilities may also be considered as a severe disability for the purposes of item (a) of this subdivision (2.1) if it is determined by an evaluation of rehabilitation potential to cause a comparable degree of substantial functional limitation similar to the specific list of disabilities listed in item (a) of this subdivision (2.1).

(3) "Minority owned business" means a business which is at least 51% owned by one or more minority persons, or in the case of a corporation, at least 51% of the stock in which is owned by one or more minority persons; and the management and daily business operations of which are controlled by one or more of the minority individuals who own it.

(4) "Female owned business" means a business which is at least 51% owned by one or more females, or, in the case of a corporation, at least 51% of the stock in which is owned by one or more females; and the management and daily business operations of which are controlled by one or more of the females who own it.

(4.1) "Business owned by a person with a disability" means a business that is at least 51% owned by one or more persons with a disability and the management and daily business operations of which are controlled by one or more of the persons with disabilities who own it. A not-for-profit agency for persons with disabilities that is exempt from taxation under Section 501 of the Internal Revenue Code of 1986 is also considered a "business owned by a person with a disability".

***

(9) "Control" means the exclusive or ultimate and sole control of the business including, but not limited to, capital investment and all other financial matters, property, acquisitions, contract negotiations, legal matters, officer-director-employee selection and comprehensive hiring, operating responsibilities, cost-control matters, income and dividend matters, financial transactions and rights of other shareholders or joint partners. Control shall be real, substantial and continuing, not pro forma. Control shall include the power to direct or cause the direction of the management and policies of the business and to make the day-to-day as well as major decisions in matters of policy, management and

Exhibit 21

Exhibit B

operations. Control shall be exemplified by possessing the requisite knowledge and expertise to run the particular business and control shall not include simple majority or absentee ownership.

(10) "Business concern or business" means a business that has average annual gross sales over the three most recent calendar years of less than $31,400,000 as evidenced by the federal income tax return of the business. A firm with gross sales in excess of this cap may apply to the Business Enterprise Council for Minorities, Females, and Persons with Disabilities for certification for a particular contract if the firm can demonstrate that the contract would have significant impact on businesses owned by minorities, females, or persons with disabilities as suppliers or subcontractors or in employment of minorities, females, or persons with disabilities.

(b) When a business concern is owned at least 51% by any combination of minority persons, females, or persons with disabilities, even though none of the three classes alone holds at least a 51% interest, the ownership requirement for purposes of this Act is considered to be met. The certification category for the business is that of the class holding the largest ownership interest in the business. If 2 or more classes have equal ownership interests, the certification category shall be determined by the Department of Central Management Services.

Exhibit 21

Exhibit C

Progress Investment Management Company Minority-, Female- and Persons with a Disability-Owned (MFDB)

Managers Program Status As of June 30, 2017

Asset Class/Manager Name

Market Value (in $Millions)

Non-U.S. Equity Affinity Investment Advisors Arga Investment Management Brown Capital Management Denali Advisors Glovista Investments Strategic Global Advisors

50 20 33 24 21 58

Fixed Income Garcia Hamilton & Associates GIA Partners LM Capital Management New Century Advisors Piedmont Investment Advisors Ramirez Asset Management

15 68 74 32 18 17

Total Assets

$4281

1 Totals may not add due to rounding.

Exhibit 21

Exhibit D

SURS Manager Diversity Program As of June 30, 2017

Market Value

Manager Name (in $Millions) U.S. Equity Active Managers:

Channing Capital Management EARNEST Partners Gladius Piedmont Investment Advisors

$182 138 377 550

Fixed Income: Core

Garcia Hamilton & Associates LM Capital Group Pugh Capital Management

Smith Graham & Co. Investment Advisors

311 163 162 105

Non-US Equity Ativo Capital Management GlobeFlex Capital Strategic Global Advisors Private Equity Fairview Capital Partners1 Muller & Monroe Asset Management2 Real Estate

Franklin Templeton Emerging Manager Real Estate Fund of Funds3

266 295

315

33 17

43

Total Assets $2,9574

1 SURS has committed a total of $75 million to Fairview Capital Partners. 2 SURS has committed a total of $150 million to Muller and Monroe Asset Management. 3 SURS has committed a total of $165 million to Franklin Templeton Real Asset Advisors to provide real estate fund of funds services. The mandate is to strive to identify capable emerging, minority- and women-owned real estate funds. 4 Totals may not add due to rounding.

Exhibit 21

Exhibit E

Schedule of Minority-, Female- and Persons with a Disability- Owned (MFDB) Investment Management Firms

As of June 30, 2017

Total MFDB Firms** $5,072.3 100.0%

*Market Value shown in millions **MFDB firms represent 32% (16 of 50) of firms within the SURS program. SURS Total Fund as of June 30, 2017 $18,177.3 Million

Exhibit 21

Exhibit E Various Emerging Manager Actual Utilization Levels and Goals Actual Goal % of Fund Managed by Minority, Female and Person with a Disability-Owned Firms 28.00% 20.00%

% of Fund Managed by Emerging Investment Manager Firms per P.A. 96-6 22.93% 20.00%

% of Actively-Managed Assets with Emerging Firms per P.A. 96-6 26.55% 25.00% Measurement Levels of Actively-Managed Assets per P.A. 96-6 Actual Goal % of Actively-Managed Assets with Minority-Owned Firms per P.A. 96-6 20.31% 16.00%

% of Actively-Managed Assets with Female-Owned Firms per P.A. 96-6 6.08% 8.00%

% of Actively-Managed Assets with Person with a Disability-Owned Firms per P.A. 96-6 0.16% 1.00%

% of Actively-Managed Assets with Latino-Owned Firms per P.A. 96-6 $923.4 million 7.06% -

% of Total Assets with Latino-Owned Firms $923.4 million 5.10% -

Exhibit 21

Exhibit E

State Universities Retirement System Schedule of Emerging, Minority, and Female-Owned Firms

As of June 30, 2017 Manager Contact Information

Ativo Capital Management Channing Capital Management EARNEST Partners Fairview Capital Partners Franklin Templeton Real Asset Advisors Gladius Capital Management LP Garcia Hamilton & Associates GlobeFlex Capital LM Capital Group Muller & Monroe Asset Management Piedmont Investment Advisors

Mr. Michael Brooks 120 N. LaSalle Street, Suite 2150 Chicago, IL 60602 Mr. Rodney Herenton 10 South LaSalle, Suite 2650 Chicago, IL 60603 Mr. Patmon Malcom 1180 Peachtree Street, Suite 2300 Atlanta, GA 30309 Mr. Douglas Boains 75 Isham Road Suite 200 West Hartford, CT 06107 Ms. Julie Rost 600 Fifth Avenue New York, NY 10020 Mr. Eric Magac, CFA 233 South Wacker Drive, Suite 5725 Chicago, IL 60606 Mr. Gilbert Garcia 1401 McKinney Street, Suite 1600 Houston, Texas 77010 Mr. Noah D. Bretz 4365 Executive Drive, Suite 720 San Diego, CA 92121 Ms. Denise Madruga 750 B Street, Suite 3010 San Diego, CA 92101 Mr. Irwin Loud, III 180 N. Stetson, Suite 1320 Chicago, IL 60601 Mr. Dennis McCaskill 2605 Meridian Parkway, Suite 105 Durham, NC 27713

Exhibit 21

Exhibit E

Manager Contact Information Progress Investment Management Company Pugh Capital Management RhumbLine Advisers Smith, Graham & Co. Investment Advisors Strategic Global Advisors

Ms. Mona Williams 33 New Montgomery Street, Suite 1900 San Francisco, CA 94105 Ms. Mary E. Pugh 520 Pike Tower 520 Pike Street, Suite 2900 Seattle, WA 98101 Ms. Denise D´Entremont 30 Rowes Wharf, Suite 420 Boston, MA 02110 Mr. Jamie G. House 6900 JPMorgan Chase Tower 600 Travis Street Houston, TX 77002 Ms. Cynthia Tusan, CFA 100 Bayview Circle, Suite 650 Newport Beach, CA 92660

Exhibit 21

Exhibit F

State Universities Retirement System Schedule of Illinois-Based Investment Managers1

As of June 30, 2017

Emerging managers shown in bold

1 Includes sub-managers in the Progress Investment Management Company managerof-managers program. 2 SURS has committed a total of $150 million to private equity funds managed by Muller and Monroe Asset Management. 3 Totals may not add due to rounding.

Manager

Market Value

($Millions)

% of SURS Total Fund

Adams Street Partners Ativo Capital Management Blue Vista Real Estate Partners CastleArk Management Channing Capital Management Gladius Mesirow Financial Investment Heitman America Real Estate Trust Muller & Monroe Asset Management2 Neuberger Berman Northern Trust Investments Total Assets with Illinois-Based Investment Managers3

$527 266 18

172 182 377 170 198 17

346 1,408

$3,681

2.9% 1.5% 0.1% 0.9% 1.0%

2.1% 0.9% 1.1% 0.1% 1.9% 7.8%

20.3%

SURS Total Fund as of June 30, 2017

$18,117

Exhibit 21

Exhibit G


Utilization of Active Emerging Investment Managers (as defined by P.A. 96-0006)1

As of June 30, 2017

Asset Class Minorities Women Persons with a Disability

Overall Active Actual and Goal

Actual Active Equities 25.97% 12.65% 0.00% 38.62%

Target Active Equities 20.00% 10.00% 0-2% 30.00%

Actual Active Fixed Income 23.25% 0.79% 0.00% 24.04%

Target Active Fixed Income 12.00% 8.00% 0-1% 20.00%

Actual Alternative Investments 12.83% 2.34% 1.10% 16.27%

Target Alternative Investments 0-20% of new allocations



20% of new allocations

Actual Active Total Fund 20.31% 6.08% 0.16% 26.55% Target Active Total Fund 16.00% 8.00% 1.00% 25.00%

1P.A. 96-0006 defines "emerging investment manager" as a qualified investment adviser that manages an investment portfolio of at least $10,000,000 but less than $10,000,000,000 and is a "minority owned business", "female owned business" or "business owned by a person with a disability" as those terms are defined in the Business Enterprise for Minorities, Females, and Persons with Disabilities Act.

Exhibit 21

Summary of Passive Investments

As of September 30, 2017

Exhibit 22

Passive Exposure by Asset Class

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total Fund U.S. Equity Non-U.S.Equity

GlobalEquity

FixedIncome

TIPS EmergingMarket

Debt

REITS

Active

StructuredActive

Passive

• A significant portion (31%) of the SURS Total Fund is managed passively • U.S. and Non-U.S. equities have large passive component • TIPS and REITS are 100% passively managed • Global Equity and Emerging Market Debt are 100% actively managed

Exhibit 22

Assets with Index Managers as of September 30, 2017

Account Asset Class 9/30/17

Mkt Value ($Millions)

% of Asset Class

% of Total Fund

BlackRock Trust Company (BTC) – Total $2,144 11.5%

BTC ACWI-ex US Non-U.S. Equity $1,192 32.3% 6.4%

BTC Emerging Markets Index Fund Non-U.S. Equity $237 6.4% 1.3%

BTC Global REIT Index Fund REITs $715 100.0% 3.8%

Northern Trust Asset Management DJ US Total Stock Market Index U.S. Equity $1,472 33.6% 7.9%

RhumbLine Advisers – Total $1,503 8.1%

RhumbLine Broad Market Index U.S. Equity $817 18.7% 4.4%

RhumbLine TIPS U.S. TIPS $686 100.0% 3.7%

State Street Global Advisors Fixed Income $615 18.0% 3.3%

Total Allocation to Index Funds $5,734 30.9%

Exhibit 22

Index Manager Performance as of September 30, 2017

• All index managers are performing as expected

as of 9/30/17 Incep $

millions %

Fund 1 YR 3 YR 5 YR 10 YR

5 YR Tracking

Error*

Northern Trust Asset Management Feb-99 1,472 7.9% 18.81% 10.74% 14.17% 7.70%Dow Jones U.S. Total Stock Market 18.67% 10.69% 14.15% 7.64%Northern Trust Excess Return 0.14% 0.05% 0.02% 0.06% 0.11%

RhumbLine Advisers Feb-05 817 4.4% 18.87% 10.98% 14.30% 7.70%Custom / Wilshire 5000 18.89% 10.97% 14.29% 7.62%RhumbLine Excess Return -0.02% 0.01% 0.01% 0.08% 0.21%

BTC Emerging Markets Oct-09 237 1.3% 22.15% 4.72% 3.80% N/AMSCI Emerging Markets 22.46% 4.90% 3.99% N/ABTC Emerging Markets Excess Return 1.3% -0.31% -0.18% -0.19% 0.22%

BTC International Jul-86 1,192 6.4% 20.03% 5.26% 7.45% 1.74%MSCI ACWI Ex-US 19.61% 4.70% 6.97% 1.28%BTC International Excess Return 0.42% 0.56% 0.48% 0.46% 0.23%

State Street Global Advisors Sep-10 615 3.3% 0.09% 2.72% 2.09% 2.97%Barclays Capital Aggregate 0.07% 2.71% 2.06% 2.95%State Street Excess Return 0.02% 0.01% 0.03% 0.02% 0.04%

RhumbLine TIPS May-17 686 3.7% N/A N/A N/A N/ABloomberg Barclays TIPS Index N/A N/A N/A N/ARhumbLine TIPS Excess Return N/A

BTC Global REIT Fund Mar-13 715 3.8% 1.38% 6.60% N/A N/AFTSE EPRA/NAREIT Developed Index 0.57% 5.87% N/A N/ABTC Global REIT Fund Excess Return 0.81% 0.73% 0.16%*Tracking error shown for the BTC Global REIT Fund is a 3-year tracking error.

Fixed Income

Global REITs

U.S. Equities

Non-U.S. Equities

TIPS

Exhibit 22

To: Investment Committee From: Investment Staff Date: November 16, 2017 Re: Summary Risk Report

Attached is the Summary Risk Report for the quarter ending September 30, 2017. Highlights for the quarter include:

• Appropriation Summary –FY 2018 state appropriations received were approximately$74.8 million, or 17.1% of the anticipated $438.4 million amount, as of September 30,2017. The total FY 2018 appropriation is $1,753,685,000. The FY 2017 appropriation of$1,671,426,000 was paid in full as of September 22, 2017.

• Cash Account Summary – Ending cash on hand was approximately $137.5 million as ofSeptember 30, 2017. Net private partnership cash flows during the quarter were positiveand were approximately $15 million.

• Liquidity – The portfolio remains highly liquid with 80.3% of assets estimated to haveliquidity of less than two weeks under normal market conditions.

• Global Financial Stress Index – The GFSI was -0.16 indicating that the market isexperiencing slightly less stress than normal, and well below the peak of 3.01 during theGlobal Financial Crisis.

• Value at Risk (1 Year Forward) – Tail risk decreased during the quarter from 13.19% to12.31%. This parameter indicates that, at a confidence level of 95%, the estimated assetloss over a one-year period would be of 12.31% or less. Risk estimates for theopportunity fund, hedge funds, real estate, fixed income and equity all declined for the 3rd

quarter.

• Standard Deviation (5 Year Historical) – Total portfolio volatility slightly decreased fromthe prior quarter from 6.39% to 6.38%.

• Volatility (VIX) Index – The VIX ended the quarter at 9.51, below the historical averageof 18.7. During the quarter, the VIX closed in a range from 9.36 to 16.04.

• U.S. Treasury Yield Curve – The yield curve remained relatively unchanged during thequarter. The yield on the 10-Year Treasury increased from 2.31% to 2.33% during thequarter.

Exhibit 23

Summary Risk Report

Quarter Ending September 30, 2017

Exhibit 24

Risk Dashboard

Liquidity VaR Standard Deviation

100% 0%

70%

50%

80.3%

20%

50% 0%

18%

12.31%

12%

10%

0% 30%

6.38%

o Liquidity Green = > 70.00% Highly Liquid, Yellow = 69.90% - 50.00%, Red = < 50.00%.

Liquidity Estimates Under Normal Market Conditions. Stressed Market Conditions Will Impact Both Liquidity & Pricing.

o Value at Risk (VaR) Green = < 18.00%, Yellow = 18.01% to 20.00%, Red = > 20.00%.

1 Year Forward Looking Maximum Data Point = 21.50% (March 2013). 1 Year Forward Looking Minimum Data Point = 12.31% (September 2017).

o Standard Deviation Green = < 10.00%, Yellow = 10.01 – 11.80%, Red = > 11.80%.

5 Year Historical Rolling Maximum = 13.89% (June 2012). 5 Year Historical Rolling Minimum = 5.74% (December 1996).

Exhibit 24

Appropriation Summary

SURS Fiscal Year 2018 Appropriation $1,629,307,606

Month Amount Due Amount Received (Under) / Over % Received

July $146,140,417 $683,300 ($145,457,117) 0.5%

August $146,140,417 $644,000 ($145,496,417) 0.4%

September $146,140,417 $73,443,558 ($72,696,859) 50.3%

FYTD Total $438,421,251 $74,770,858 ($363,650,393) 17.1%

Monthly appropriation payments can be volatile, making cash management and liquidity an area of focus. Data Source: SURS.

Exhibit 24

Annual Benefit Payment Summary

Includes Retirement & Disability Retirement Annuities, Survivor Benefit Annuities, Disability Benefits, Death Benefits, and Portable Refunds (ER Match). Data Source: SURS.

SURS Fiscal Year Ending Benefit Payments ($ Millions)

Year Annual

2005 $994.2

2006 $1,080.2

2007 $1,169.0

2008 $1,267.4

2009 $1,362.7

2010 $1,468.8

2011 $1,598.6

2012 $1,735.3

2013 $1,914.5

2014 $2,002.9

2015 $2,130.0

2016 $2,235.8

2017 $2,339.9

• Defined benefit plan benefit payments for FYE 2017 totaled $2,333.9 million.

• As of September 22, 2017, the FY 2017 appropriation was paid in full.

• For FY 2018, $74.8 million in appropriations had been received as of 9/30/17. This represents 17.1% of the expected FY 2018 appropriations.

• For FY 2018, an additional $146.4 million was received in October.

Key Observations:

Exhibit 24

Cash Account Summary SURS Cash Account Summary

July 1, 2017 – September 30, 2017

Beginning Balance $120,311,878

Cash In:

Partnership Distributions $52,016,028

Withdrawal for Benefit Payments 200,000,000

Funds from Closed Accounts $22,980

Other Income $1,527,488

Total Cash In: $253,566,496

Cash Out:

Partnership Capital Calls (36,860,977)

To close account (192,932)

Net Contributions (Contributions less Benefit Payments)

(199,329,022)

Total Cash Out: (236,382,931)

Ending Balance $137,495,442

Cash flow detail is provided in the Quarterly Board Report. Data Source: SURS.

Key Observations:

• Net private partnership (Private Equity, Real Estate, Infrastructure and Hedge Funds) cash flows were positive and approximately $15 million for the quarter.

• Benefit payments were approximately $638 million for the quarter.

Exhibit 24

Liquidity Profile

0%

10%

20%

30%

40%

50%

60%

Cash Passive < 2 Weeks 1 Month + Illiquid

Estimated Days to Liquidate 80.3%

Liquidity risk is the risk that SURS would not be able to meet short term financial demands due to cash flow and/or the inability to convert securities or other assets to cash without a loss of capital and/or income in the process. Currently, approximately 80.3% of the portfolio is highly liquid under normal market conditions. Data Source: SURS.

Exhibit 24

Global Financial Stress Index

Global Financial Stress Index (GFSI) Chart – The GFSI composite index aggregates over twenty measures of stress across five asset classes and various geographies, measuring three separate kinds of financial market stress: risk, as indicated by cross-asset measures of volatility, solvency, and liquidity; hedging demand, implied by the skew of equity and currency options; and investor appetite for risk, as measured by trading volumes as well as flows in and out of equities, high-yield bonds, and money markets. GFSI > 0 means more stress than normal. GFSI < 0 means less stress than normal. Data source: Bloomberg.

-0.66

3.01

-0.50

0.00

0.50

-0.16

Exhibit 24

Value at Risk (VaR)

VaR is the estimated loss over a one year period given a certain level of confidence (95%). VaR is best understood in terms of the bell curve or normal distribution. VaR focuses on the outcomes at the curve’s left tail, 1.96 standard deviations from the mean. Data Source: Northern Trust.

0 1 2 3 -1 -2 -3

68%

95%

99.7%

Downside Risk (Left Tail)

12.00%

14.00%

16.00%

18.00%

20.00%

22.00%

Mar

-13

Jun-

13Se

p-13

Dec-

13M

ar-1

4Ju

n-14

Sep-

14De

c-14

Mar

-15

Jun-

15Se

p-15

Dec-

15M

ar-1

6Ju

n-16

Sep-

16De

c-16

Mar

-17

Jun-

17Se

p-17

Total Fund (1 Year Forward Looking)

VaR

21.50%

12.31%

Exhibit 24

Standard Deviation

Standard deviation measures the variability of investment returns. A low standard deviation indicates that the data points tend to be very close to the mean, while high standard deviation indicates that the data are spread out over a large range of values. The expected standard deviation of the SURS portfolio based on the target asset allocation is 12.5%. Data Sources: SURS and NEPC.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Mar

-13

Jun-

13

Sep-

13

Dec-

13

Mar

-14

Jun-

14

Sep-

14

Dec-

14

Mar

-15

Jun-

15

Sep-

15

Dec-

15

Mar

-16

Jun-

16

Sep-

16

Dec-

16

Mar

-17

Jun-

17

Sep-

17

Total Fund (5 Years Ending)

Total Fund

• Total Fund w/Overlay Annualized Standard Deviation (5 Years Ending) is 6.38% as of September 30, 2017; 82nd percentile universe ranking.

• Total Fund (5 Year Rolling) Standard Deviation ranges from 5.74% (Dec. 1996) to 13.89% (June 2012)

• Based on the current asset allocation, portfolio volatility is lower than the expected 12.5%

Key Observations:

13.89%

5.74%

6.38%

Exhibit 24

CBOE Volatility Index

Volatility Index (VIX) Chart – VIX is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge." Source: CBOE.com.

59.89

9.51

18.7

0

5

10

15

20

25

30

35

40

45

50

55

60

65

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

VIX (Month End)

VIX (Month End) Historical Average

Exhibit 24

Treasury Yield Curve

A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The U.S. Treasury yield curve is used as a benchmark for other debt in the market, such as mortgage rates or bank lending rates. The curve is also used to predict changes in economic output and growth. A normal yield curve is one in which longer maturity bonds have a higher yield compared to shorter-term bonds due to the risks associated with time. An inverted yield curve is one in which the shorter-term yields are higher than the longer-term yields, which can be a sign of upcoming recession. A flat (or humped) yield curve is one in which the shorter- and longer-term yields are very close to each other, which is also a predictor of an economic transition. The slope of the yield curve is also seen as important: the greater the slope, the greater the gap between short- and long-term rates. Source: Investopedia.com

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

1 Month 3 Month 6 Month 1 Year 2 Year 3 Year 5 Year 7 Year 10 Year 20 Year 30 Year

Treasury Yield Curve

6/30/2017 9/29/2017

Exhibit 24

Fiscal Year 2018-19 Summary Work Plan Investment Committee Schedule


Denotes recurring items- Denotes non-recurring items

FISCAL YEAR 2018

December 7, 2017 Annual Index Fund Investments Review Annual Real Estate Asset Class Review Receipt of Annual Report to the Governor and General Assembly on Utilization of Emerging Investment

Managers Review of Goals for Utilization of Minority- and Female-Owned Investment Managers & Broker/Dealers

February 1-2, 2018 Annual Fixed Income & Emerging Market Debt Asset Class Reviews- Finalist Interviews for General Investment Consultant - Finalist Interviews for Options-Based Strategies Provider(s)

March 8, 2018 Annual Hedged Strategies Asset Class Review Annual Commodities Asset Class Review- Finalist Inteviews for DC Consultant - Educational Topic (TBD)

April 19, 2018 Annual U.S. Equity Asset Class Review Annual Investment Review of Self-Managed Plan (SMP)- Educational Topic (TBD)

Exhibit 25

June 7, 2018 - SURS FY ’19 Budget - Annual Private Equity Asset Class Review - Annual Opportunity Fund Asset Class Review - Educational Topic (TBD)

FISCAL YEAR 2019 September 13, 2018 Annual Review of SURS Portfolio Consideration of SURS Fiscal Year 2018 Investment Plan Annual Investment Policies Review Review of Goals for Utilization of Minority- and Female-Owned Investment Managers & Broker/Dealers - Educational Topic (TBD) October 18, 2018 Annual Broker/Dealer Review Annual Global/International Equity Asset Class Reviews - Educational Topic (TBD)

December 6, 2018 Receipt of Annual Report to the Governor and General Assembly on Utilization of Emerging Investment

Managers Annual Index Fund Investments Review Annual Real Estate Asset Class Review - Educational Topic (TBD) January 31, 2019 Annual Fixed Income & Emerging Market Debt Asset Class Reviews - Educational Topics – Trustee Educational Forum (TBD) March 7, 2019 Annual Hedged Strategies Asset Class Review Annual Commodities Asset Class Review - Educational Topic (TBD)

Exhibit 25

April 18, 2019 Annual U.S. Equity Asset Class Review Annual Investment Review of Self-Managed Plan (SMP) - Educational Topic (TBD) June 6, 2019 - SURS FY ’20 Budget - Annual Private Equity Asset Class Review - Annual Opportunity Fund Asset Class Review - Educational Topic (TBD)

Exhibit 25

Schedule of 2018-2019 Meetings Dates

Thursday, February 1, 2018 9:00 a.m. – 5:00 p.m. Investment Committee Friday, February 2, 2018 9:00 a.m. – 1:00 p.m. Investment Forum Chicago

Thursday, March 8, 2018 9:00 a.m. – 5:00 p.m. Committee Meetings Friday, March 9, 2018 9:00 a.m. – 12:00 p.m. Committee Meetings Champaign Board Meeting

Thursday, April 19, 2018 9:00 a.m. - 5:00 p.m. Investment Committee Chicago

Thursday, June 7, 2018 9:00 a.m. - 5:00 p.m. Committee Meetings Friday, June 8, 2018 9:00 a.m. - 12:00 p.m. Committee Meetings Chicago Board Meeting

Thursday, September 13, 2018 9:00 a.m. - 5:00 p.m. Committee Meetings Friday, September 14, 2018 9:00 a.m. - 12:00 p.m. Committee Meetings Champaign Board Meeting

Thursday, October 18, 2018 9:00 a.m. - 5:00 p.m. Investment Committee Chicago

Thursday, December 6, 2018 9:00 a.m. - 5:00 p.m. Committee Meetings Friday, December 7, 2018 9:00 a.m. - 12:00 p.m. Committee Meetings Chicago Board Meeting

Thursday, January 31, 2019 9:00 a.m. – 5:00 p.m. Investment Committee Friday, February 1, 2019 9:00 a.m. – 1:00 p.m. Investment Forum Chicago

Exhibit 26

Thursday, March 7, 2019 9:00 a.m. – 5:00 p.m. Committee Meetings Friday, March 8, 2019 9:00 a.m. – 12:00 p.m. Committee Meetings Champaign Board Meeting Thursday, April 18, 2019 9:00 a.m. - 5:00 p.m. Investment Committee Chicago Thursday, June 6, 2019 9:00 a.m. - 5:00 p.m. Committee Meetings Friday, June 7, 2019 9:00 a.m. - 12:00 p.m. Committee Meetings Chicago Board Meeting Thursday, September 12, 2019 9:00 a.m. - 5:00 p.m. Committee Meetings Friday, September 13, 2019 9:00 a.m. - 12:00 p.m. Committee Meetings Champaign Board Meeting Thursday, October 17, 2019 9:00 a.m. - 5:00 p.m. Investment Committee Chicago Thursday, December 5, 2019 9:00 a.m. - 5:00 p.m. Committee Meetings Friday, December 6, 2019 9:00 a.m. - 12:00 p.m. Committee Meetings Chicago Board Meeting

Exhibit 26

MINUTES Meeting of the Investment Committee of the … copy of NEPC’s presentations Real Estate...

Documents

Transcript of MINUTES Meeting of the Investment Committee of the … copy of NEPC’s presentations Real Estate...