PORTFOLIO REVIEW 2Q17 - Littleton Public Schools Public... · — A client-centered, risk-focused,...

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PORTFOLIO REVIEW 2Q17

Littleton Public Schools

Wendy Dominguez, MBA

Elizabeth Stemper, AIF®, QPFC

Peter Mustian

Prepared by: T.J. Berge

© 2017 INNOVEST PORTFOLIO SOLUTIONS, LLC

INNOVEST AT A GLANCE

Our History

— Founded in 1996 by Richard Todd and Wendy Dominguez who lead the firm today

— Independent, privately held and employee-owned— SEC Registered Investment Advisor— Currently more than $16 billion in firm assets*

Our Professionals

— 46 employees— Long-term relationships with top tier managers, vendors, and

service providers— 95% employee retention rate— Demonstrated ability to hire and retain top quality talent

Alignment of Interest with Our Clients

— 98% client retention— Conflict-free, independent and objective advocate— A consistent investment philosophy since the firm’s inception— A client-centered, risk-focused, and performance-driven culture— Year-over-year revenue growth 19 of the last 20 years— 2016 Client Survey Results: Overall Client Satisfaction 4.7 (5-point

Scale)

Award-Winning Team

— Innovest named one of the Best Places to Work in the nation, 2016, 2014, Pensions & Investments

— Innovest ranked Forbes #3 Fastest Growing RIA Firms— Ranked #1 among 2015 Investment Managers in Colorado**— Recognized for 403(b) Plan Conversion Campaign, 2016, The Eddy

Awards— Finalist for the Colorado Top Company Award, 2015, ColoradoBiz— Top 100 Wealth Managers in the nation, 2015, Forbes— 2014 Retirement Plan Adviser Team of the Year, PLANSPONSOR— 19th Fastest Growing RIA in the nation, 2015, Financial Advisor

Fiduciary Expertise

— One of the first investment firms in the Rocky Mountain region rooted in prudent fiduciary principles

— Accreditations through Investment Management Consultants Association and Center for Fiduciary Studies

— Process-oriented approach with a focus on investment and spending policies

— Expert Witness in nearly 60 cases involving fiduciary investment responsibilities

— Numerous fiduciary certifications: AIF™, AIFA ™, CIMA®, CFA , QPFC, RF™, RPS

Money Management Experience

— 16 member Investment Committee with median experience of more than 20 years

— Principals have more than 25 years of experience managing large pension and foundation portfolios

— Disciplined and opportunistic approach to forward-looking portfolio design

— Experts in many investment strategies: active, passive, hedge funds, and other alternatives

— Emphasis on downside risk quantification in developing portfolio design

Client Access and Transparency

— Direct access to Innovest’s investment and operational heads at all times

— Routine access to closed products, waived investment minimums, lower product fees, and socially responsible mandates

— Customized asset allocation, benchmarking and reporting

Diverse Client Base

— 250+ clients in 21 states— Retirement Plans— Foundations & Endowments— Wealthy Families*As of April 2017

** Denver Business Journal – assets under management as of 10/1/16

Privileged and Confidential

2

INNOVEST’S HISTORY WITH LITTLETON PUBLIC

SCHOOLS2014-2017

• Signed contract between LPS and Innovest Portfolio Solutions,

LLC in the 4th Quarter of 2014

• Negotiated new contact with TIAA after RFI process

• Assisted with conversion

• Created new investment menu

• Coordinated the education efforts of the rollout

• Designed custom model portfolios as education tool for asset

allocation.

• Replaced money market fund due to money market reforms

3

RETIREMENT PLAN TOPICS & TRENDSHighlighting the retirement plan regulatory and legislative environment

Second Quarter 2017

The US Department of Labor’s Fiduciary Rule took effect June 9, 2017.

The rule expands the circumstances under which an entity will be considered a Fiduciary under

the Employee Retirement Income Security Act of 1974 (ERISA) and related exemptions.

• There will be a transition period for the full application of the Fiduciary Rule. All entities must

be fully compliant by January 1, 2018.

• The rule is intended to protect plans and participants from Conflicts of Interest, Disloyalty, and

Imprudence. The Fiduciary Standard is a higher level of accountability than the Suitability

Standard, which was previously required of most impacted entities.

• We believe the greatest impact relates to IRA rollovers. The rule will expand the definition of

Fiduciary to include entities that make recommendations or solicitations to retirement plans and

IRA’s. Previously, only advisors that charged a fee for service (hourly or as a percentage of

assets) were considered fiduciaries.

• The DOL rule doesn't ban commissions or revenue sharing, but it requires advisers who do

accept them to have clients sign a best interest contract exemption, or BICE. It pledges the

adviser will act in the client's best interests and only earn “reasonable” compensation. The

exemption also must disclose information to clients about fees and potential conflicts of

interest.

• Education about retirement savings and general financial and investment information is not

considered fiduciary advice covered under the rule.

4

RETIREMENT PLAN TOPICS & TRENDS

1. How does this impact my Plan?

Any individuals or entities that provide advice to your plan participants will have to adhere to

the rule. This rule will impact Record-Keepers and Administrators that work with your plan

(Innovest has always been a fiduciary). It could impact how participant education is

conducted in some instances. The rule also requires full transparency for fees and

commissions, which could impact some expense statements and disclosures that you or your

participants receive.

2. What do I need to do?

Ask your providers if their processes are in line with the new provisions and if not, how they

plan to become compliant. Changes will depend on the level of service your current

providers are delivering and whether they are already operating as fiduciaries or not.

3. Is this permanent? Could it be changed?

On July 6, 2017 the DOL issued a request for input on a potential delay in the January 1, 2018

applicability date of certain provisions of the fiduciary rule. This is an ongoing examination

and could impact the rule in the future.

Highlighting the retirement plan regulatory and legislative environment

FAQs of the Fiduciary Rule

5

LITTLETON PUBLIC SCHOOLS 401(A) PLAN SUMMARYCurrent Structure Considerations and Next Steps

Plan Provisions • Plan Type: 401(a)

• Vesting Schedule: Immediate

• Eligibility Requirements: Employment

• Roth: N/A

• Safe Harbor: N/A

• Normal Retirement Age: 65 years

• Fiduciary Document Checklist:

Governance • IPS Updated: March 2017

• Governance Documents:

• Plan Documents: Established April 2, 1996, Amended and effective July 1, 2012

• Fiduciary Education:

• Recordkeeper Contract: TIAA, May 13, 2006, amended 2015

• Innovest Contract: December 2014

• Fiduciary Education

Contributions • Contribution Rate: Dependent on employee classification: Superintendant – Per annual

employment contract; Superintendent staff: 2.5% + $7,496.64; Administrators: 2.5% +

$1,300; Administrative Staff 2.5%; Technical support 2.0%

• Match Provision: N/A

• Enrollment: Mandatory

• Automatic Enrollment: N/A

• Auto-Escalation: N/A

Distributions • Loans: No

• Hardships: No

• Installments: Yes

• In-Service Withdrawals: No

Costs • Fee Leveling: No, fee 0.42% - excess revenue sharing sent to Revenue Credit Account

• Annual Plan Fee Analysis: December 2016

• Competitive Pricing April 2015

• Other Fees: Brokerage fees

• Share Class Review: March 2017

Investments • Investment Direction: Participant

• # of Investment Options: 19

• QDIA/DIA: Yes, age-appropriate target date fund

• Re-enrollment: No

• Managed Accounts: No

• Self-Directed Brokerage Window: Yes

• GMWB Options: TIAA Traditional

Education • Participant Education Plan: TIAA – 27 days of on-site education

• Participant Retirement Readiness Review: Yes 6

LITTLETON PUBLIC SCHOOLS 403(b) PLAN SUMMARY Current Structure Considerations and Next Steps

Plan Provisions • Plan Type: 403(b)


• Eligibility Requirements: Immediately Eligible

• Roth: Yes, effective July 1, 2017

• Safe Harbor: No

• Normal Retirement Age: 65 years




• Plan Documents: Effective: July 1 1983; amended and restated January 1, 2015





Contributions • Contribution Rate: EE - voluntary up to $18,000; catch-up contribution up to $6,000

• Match Provision: Yes, discretionary set by PERA

• Enrollment: Participant Elected

• Automatic Enrollment: No

• Auto-Escalation: No


• Unforeseen Emergencies: Yes


• In-Service Withdrawals: Yes at age 59.5













Education • Participant Education Plan: TIAA, 27 on-site meetings

• Participant Retirement Readiness Review: Yes

7

LITTLETON PUBLIC SCHOOLS 457(b) PLAN SUMMARY Current Structure Considerations and Next Steps

Plan Provisions • Plan Type: 457(b)


• Eligibility Requirements: Immediately Eligible

• Roth: Yes, effective July 1, 2017

• Safe Harbor: N/A

• Normal Retirement Age: Combination of age + years of service credit specified by

PERA




• Plan Documents: Effective: July 1, 2002; restated July 1, 2005; restated July 1, 2008,

amended November 2015





Contributions • Contribution Rate: EE – voluntary up to $18,000; catch up contribution up to $6,000

• Match Provision:

• Enrollment: Participant Elected

• Automatic Enrollment: No

• Auto-Escalation: No


• Unforeseen Emergencies: No


• In-Service Withdrawals: No













Education • Participant Education Plan: TIAA, 27 on-site meetings

• Participant Retirement Readiness Review: Yes 8

Plan Benchmark*

8,595,900$ Similarly Sized

0.63% 1.46%

0.95% N/A

Provider Fee (in $) Fee (in %) Fee (in $) Fee (in %) Fee (in $) Fee (in %)

Expense ratio retained by fund manager Fund Managers 17,904$ 0.21% 17,904$ 0.21%

Revenue sharing sent to recordkeeper TIAA 1,811$ 0.02% 1,811$ 0.02%

Gross Investment Management Fees -$ 0.00% 19,716$ 0.23% 19,716$ 0.23%

Recordkeeping/Administration Fee TIAA 34,292$ 0.40% 34,292$ 0.40%

Gross Recordkeeping and Administrative Fees -$ 0.00% 34,292$ 0.40% 34,292$ 0.40%

Total Investment, Recordkeeping and Administrative Costs -$ 0.00% 54,007$ 0.63% 54,007$ 0.63%

Investment Consultant Innovest 27,775$ 0.32% 27,775$ 0.32%

Total Plan Expenses 27,775$ 0.32% 54,007$ 0.63% 81,782$ 0.95%

Employer Paid Employee Paid Total

Littleton Public Schools Combined Annual Fee Review

Investment, Recordkeeping and Administrative Costs

Plan assets as of 12/31/2016

Estimated Total Plan Expenses

*The plan's estimated investment, recordkeeping and administrative costs of 0.63% as shown above, compare favorably to 401(k) Source data, a

universe of 60 similarly sized 401(k) plans with an average investment, recordkeeping and administrative cost of 1.46%.

This review illustrates estimated plan costs based on available data.

9

Average Number Investment Options 19 Number Investment Options 19

Average Contribution Rate 5.8%/6.6%* Average Contribution Rate NA

Average Account Balance $113,539 Average Account Balance $18,983

*Contribution rate for lower compensated/higher compensated employees as defined by ADP testsSource: PCSA's 58th Annual Survey of Profit Sharing and 401(k) Plans (2014)

Vanguard Target Retirement 2055

Self Directed Brokerage

Brokerage Window

Target Date Portfolios

Vanguard Target Retirement Income










Mid BlackRock Mid Cap

Value Opportunities Janus Enterprise

Cash Equivalents

Vanguard Mid Cap Index

Vanguard Small Cap Index

TIAA-CREF Social Choice Equity

Vanguard Federal Money Market

TIAA Traditional Retirement Choice

International Equity

Smal

l

DFA U.S. Small Cap Value

Voya Small Cap Opportunities

Value Core GrowthAmerican Beacon

International

Vanguard Total International Stock

Index

American Funds Europacific

Value Core Growth

Metropolitan West Total Return Bond

Vanguard Total Bond Market Index La

rge

Dodge & Cox Stock Vanguard S&P 500 Index

Harbor Capital Appreciation

401(a) Retirement Plan Statistics and Menu Coverage

Industry Averages* Plan Averages

Menu Coverage

Fixed Income Domestic Equity Specialty

10

Average Number Investment Options 19 Number Investment Options 19

Average Contribution Rate 5.8%/6.9%* Average Account Balance-403(b) $22,555

Average Account Balance $113,539 Average Account Balance-457 $45,521

*Contribution rate for lower compensated/higher compensated employees as defined by ADP testsSource: PCSA's 58th Annual Survey of Profit Sharing and 401(k) Plans (2014)






Target Date Portfolios

Vanguard Target Retirement Income






Vanguard Federal Money Market

Value Core GrowthBrokerage Window

American Beacon International

Vanguard Total International Stock

Index

American Funds Europacific

Smal

l

DFA U.S. Small Cap Value

Vanguard Small Cap Index

Voya Small Cap Opportunities

Cash Equivalents International Equity Self Directed Brokerage

TIAA-CREF Social Choice Equity

TIAA Traditional Retirement Social

Choice Plus Mid BlackRock Mid Cap

Value OpportunitiesVanguard Mid Cap

Index Janus Enterprise

Value Core Growth

Metropolitan West Total Return Bond

Vanguard Total Bond Market Index La

rge

Dodge & Cox Stock Vanguard S&P 500 Index

Harbor Capital Appreciation

403(b) & 457 Retirement Plan Statistics and Menu Coverage

Industry Averages* Plan Averages

Menu Coverage

Fixed Income Domestic Equity Specialty

11

Asset Allocation Asset Allocation

Mar-2017 Jun-2017

($) % ($) %

Large Cap Equity

Dodge & Cox Stock 26,533 0.95 28,024 0.97Vanguard S&P 500 130,364 4.66 210,581 7.30Harbor Capital Appreciation Instl 123,762 4.42 71,996 2.50Total Large Cap Equity 280,659 10.02 310,601 10.76

Mid Cap Equity

BlackRock Mid Cap Value Opportunities 1,353 0.05 1,334 0.05Vanguard Mid Cap Index 7,937 0.28 8,148 0.28Janus Enterprise 44,275 1.58 57,524 1.99Total Mid Cap Equity 53,564 1.91 67,006 2.32

Small Cap Equity

DFA US Small Cap Value 7,308 0.26 7,260 0.25Vanguard Small Cap Index 20,345 0.73 31,313 1.09Voya Small Cap Opportunities - 0.00 - 0.00Total Small Cap Equity 27,653 0.99 38,572 1.34


American Beacon Intl Equity Instl 12,394 0.44 13,099 0.45Vanguard Total Intl Stock Index 88,321 3.15 96,447 3.34American Funds EuroPacific Gr 29,590 1.06 49,871 1.73Total International Equity 130,305 4.65 159,417 5.52

Fixed Income

Met West Total Return 36,966 1.32 37,413 1.30Vanguard Total Bond Market Idx 17,200 0.61 26,793 0.93TIAA Traditional Retirement Choice 53,136 1.90 66,081 2.29Total Fixed Income 107,302 3.83 130,287 4.52

LPS 401(a) Total Fund 2,800,498 100.00 2,885,437 100.00

Mar-2017 Jun-2017

($) % ($) %

Specialty

TIAA-CREF Social Choice 3,489 0.12 3,618 0.13

Cash & Equivalents

Vanguard Federal Money Market 508 0.02 509 0.02

Target Date Funds

Vanguard Target Retirement Income - 0.00 - 0.00Vanguard Target Retirement 2010 193,921 6.92 197,148 6.83Vanguard Target Retirement 2015 252,998 9.03 258,629 8.96Vanguard Target Retirement 2020 251,125 8.97 257,854 8.94Vanguard Target Retirement 2025 415,553 14.84 358,118 12.41Vanguard Target Retirement 2030 243,557 8.70 232,653 8.06Vanguard Target Retirement 2035 499,038 17.82 516,357 17.90Vanguard Target Retirement 2040 239,857 8.56 248,582 8.62Vanguard Target Retirement 2045 82,194 2.93 86,614 3.00Vanguard Target Retirement 2050 15,802 0.56 16,392 0.57Vanguard Target Retirement 2055 2,970 0.11 3,081 0.11Total Target Date Funds 2,197,017 78.45 2,175,427 75.39


Self Directed Account - 0.00 - 0.00

LPS 401(a) Total Fund 2,800,498 100.00 2,885,437 100.00

Asset Allocation - 401(a)

12


Mar-2017 Jun-2017

($) % ($) %

Large Cap Equity


Mid Cap Equity

BlackRock Mid Cap Value Opportunities 2,607 0.06 2,653 0.06Vanguard Mid Cap Index 37,740 0.87 41,136 0.88Janus Enterprise 72,186 1.66 179,450 3.83Total Mid Cap Equity 112,533 2.58 223,239 4.76

Small Cap Equity

DFA US Small Cap Value 19,922 0.46 20,436 0.44Vanguard Small Cap Index 57,314 1.32 90,911 1.94Voya Small Cap Opportunities 1,741 0.04 2,117 0.05Total Small Cap Equity 78,977 1.81 113,465 2.42


American Beacon Intl Equity Instl 27,254 0.63 30,053 0.64Vanguard Total Intl Stock Index 164,313 3.77 185,393 3.95American Funds EuroPacific Gr 61,032 1.40 112,834 2.41Total International Equity 252,599 5.80 328,279 7.00

Fixed Income

Met West Total Return 124,578 2.86 134,570 2.87Vanguard Total Bond Market Idx 25,208 0.58 62,153 1.32TIAA Traditional Retirement Choice Plus 331,267 7.61 368,233 7.85Total Fixed Income 481,052 11.05 564,956 12.04

Littleton Public Schools 403(b) 4,355,144 100.00 4,691,375 100.00

Mar-2017 Jun-2017

($) % ($) %

Specialty


Cash & Equivalents

Vanguard Federal Money Market 5,426 0.12 7,145 0.15

Target Date Funds

Vanguard Target Retirement Income 158,983 3.65 164,268 3.50Vanguard Target Retirement 2010 160,433 3.68 156,453 3.33Vanguard Target Retirement 2015 79,104 1.82 81,644 1.74Vanguard Target Retirement 2020 466,797 10.72 483,648 10.31Vanguard Target Retirement 2025 734,543 16.87 553,990 11.81Vanguard Target Retirement 2030 145,233 3.33 159,033 3.39Vanguard Target Retirement 2035 411,759 9.45 449,848 9.59Vanguard Target Retirement 2040 455,597 10.46 483,152 10.30Vanguard Target Retirement 2045 64,689 1.49 71,420 1.52Vanguard Target Retirement 2050 114,747 2.63 125,061 2.67Vanguard Target Retirement 2055 2,629 0.06 3,032 0.06Total Target Date Funds 2,794,515 64.17 2,731,550 58.22


Self Directed Account - 0.00 - 0.00

LPS 403(b) Total Fund 4,355,144 100.00 4,691,375 100.00

Asset Allocation - 403(b)

13


Mar-2017 Jun-2017

($) % ($) %

Large Cap Equity


Mid Cap Equity

BlackRock Mid Cap Value Opportunities 862 0.04 886 0.04Vanguard Mid Cap Index 3,758 0.19 3,876 0.18Janus Enterprise 30,370 1.50 34,081 1.59Total Mid Cap Equity 34,990 1.73 38,843 1.82

Small Cap Equity

DFA US Small Cap Value 730 0.04 755 0.04Vanguard Small Cap Index 29,724 1.47 32,222 1.51Voya Small Cap Opportunities 745 0.04 977 0.05Total Small Cap Equity 31,199 1.54 33,954 1.59


American Beacon Intl Equity Instl - 0.00 - 0.00Vanguard Total Intl Stock Index 63,955 3.16 69,465 3.25American Funds EuroPacific Gr 26,747 1.32 29,717 1.39Total International Equity 90,703 4.48 99,183 4.64

Fixed Income

Met West Total Return 34,250 1.69 39,824 1.86Vanguard Total Bond Market Idx 54,217 2.68 63,088 2.95TIAA Traditional Retirement Choice Plus 134,130 6.62 139,536 6.52Total Fixed Income 222,597 10.99 242,448 11.33

LPS 457 Total Fund 2,025,020 100.00 2,139,500 100.00

Mar-2017 Jun-2017

($) % ($) %

Specialty


Cash & Equivalents

Vanguard Federal Money Market 3,768 0.19 4,850 0.23

Target Date Funds

Vanguard Target Retirement Income - 0.00 - 0.00Vanguard Target Retirement 2010 240,172 11.86 244,791 11.44Vanguard Target Retirement 2015 268,381 13.25 274,355 12.82Vanguard Target Retirement 2020 197,691 9.76 197,185 9.22Vanguard Target Retirement 2025 51,246 2.53 56,799 2.65Vanguard Target Retirement 2030 33,593 1.66 34,662 1.62Vanguard Target Retirement 2035 - 0.00 - 0.00Vanguard Target Retirement 2040 69,641 3.44 76,745 3.59Vanguard Target Retirement 2045 60,521 2.99 65,628 3.07Vanguard Target Retirement 2050 61,806 3.05 65,410 3.06Vanguard Target Retirement 2055 - 0.00 - 0.00Total Target Date Funds 983,051 48.55 1,015,574 47.47

LPS 457 Total Fund 2,025,020 100.00 2,139,500 100.00

Asset Allocation - 457

14

THE MARKETS

Investment Returns

First Half of 2017

c

1st Quarter 2nd Quarter

2Q17

13.81%

2.27%

9.34%

18.43%

4.99%

YTD

c

-5%

0%

5%

10%

15%

20%

25%

S&P 500

MSCI EAFE

MSCI EM

Russell 2000 TR

BBgBarc US Agg Bond

6.12%

1.45%

3.09%

6.27%

2.46%

15

GLOBAL ECONOMICS

• In 2007 the world economy grew by 5.6%, while

this year it is projected to grow by only 3.5%.

• India (7.2%) and China (6.6%) are the only two

large economies projected to grow rapidly in

2017, and the G7 is projected to grow by 1.9%

• Lower growth is a primary reason for lower

interest rates, lower inflation, and lower expected

investment returns.

Global Growth: Decelerating

Source: IMF. 2017 numbers are estimates.

Real GDP Growth: 2007 and 2017

• Inflation has fallen below the Fed’s target rate of

2.0%, despite a very low unemployment rate of

4.4%.

• Wages, salaries and benefits have risen a modest

2.5% in the last 12 months.

• June retail sales excluding gasoline were

moderately higher than a year ago—up 3.2%

Inflation: Below Target

Core rates exclude food and energy. CPI = Consumer Price Index. PCE = Personal Consumption Deflator.

Reported 7/6/17. Sources: BEA, BLS, Haver Analytics and Deutsche Bank Research.

US Core Inflation

0

2

4

6

8

10

12

14

16

China Germany India Japan United

Kingdom

United

States

World

2007 2017

16

GLOBAL ECONOMICS, CONTINUED

• In the next few months the US Federal Reserve

plans to begin trimming its $4.5 trillion balance

sheet, including its 20% ownership of US

government bonds.

• Central Banks purchased bonds in the credit crisis

to help reduce rates on mortgages and other debt.

• The unwinding of global quantitative easing is a

new phenomenon, the results of which are hard to

predict.

Percentage of Domestic Government Bonds Held by Central BanksFed: Time to Unwind

• Since the end of the housing market crisis, home

prices have recovered at a much faster pace than

wages.

• National home prices have appreciated about

5.5% in the last 12 months, while average hourly

earnings rose by 2.5% during the same period.

• The median price of an existing US home was

$252,800 in May (the highest on record), and

there is strong demand and limited supply for less

expensive housing.

Housing Prices and WagesUS Home Prices: Outpacing Wages

Shaded vertical area indicates recession. Sources: SLFR/FRED, BLS and FHFA. As of April 2017.

Sources: OECD and Deutsche Bank Global Markets Research

17

ASSET CLASS FUNDAMENTALS

Data are year-over-year changes in trailing twelve-month revenue and earnings per share, calculated quarterly.

The most recent twelve-month growth rates are through 3/31/2017. Source: S&P Capital IQ.

• Trailing four-quarter S&P 500 earnings as of

March 31 grew at the fastest year-over-year

rate in three years.

• Second quarter S&P 500 earnings are forecast

to have grown 6.5% from the same period a

year earlier, according to FactSet.

• Equities’ cash flow yields are notably more

attractive in Europe (9.3%) and Japan (12.3%),

as compared to the US (7.0%). The higher the

yield, the higher the potential future returns.

Corporate Earnings: Rebounding

• Since the Fed started raising short-term interest

rates in late 2015, longer term rates have

remained essentially unchanged.

• Low, or even negative, yields on non-US bonds

has fueled purchases of higher yielding US

Treasuries, helping to hold down US interest rates.

• A flattening yield curve tends to reduce banks’

lending profitability, due in part to banks paying

higher rates on deposits.

US Treasury Yield CurveThe Treasury Yield Curve: Flattening

The Fed began raising short-term rates on 12/16/2015. Sources: US Treasury and Morningstar.

S&P 500 Revenue and Earnings Growth

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

12/15/2015 6/30/2017

18

• Improvements in drilling and production

technology have significantly lowered break-even

costs for domestic oil drilling.

• The US rig count having doubled in the last year

and higher global production (despite OPEC’s

quotas) have pushed oil prices down by 20% since

February.

• Despite an improving outlook for MLPs’ volume

and distribution growth, retail investors have

reduced their exposures to the asset class.

• US high yield fixed income spreads have compressed

since early 2016.

• Annual default rates for US high yield bonds and

floating rate loans were recently 1.50% and 1.54%,

respectively, significantly below historic averages.

• Default rates on below-investment-grade paper are

expected to increase during the next recession.

Credit: Spreading it Thin

ASSET CLASS FUNDAMENTALS, CONTINUED

Energy: Supply Up, Prices Down

$60

$48

$60

$41 $46

$50

$30

$36 $38

$-

$20

$40

$60

$80

Permian (TX) Eagle Ford (TX) Bakken (ND)

2014 2015 2016

Assumes 10% IRR. Permian data represents an average of two primary plays in the region: the Permian Midland

Basin and the Permian Delaware Basin. Source: Wells Fargo Research as of March 2017.

High Yield Bond Spreads

Crude Oil: Break-Even Costs for Top-Producing US Regions

The spread is the yield-to-worst of the J.P. Morgan Domestic High Yield Index minus the yield on an equivalent-

maturity US Treasury. Reported 6/30/2017. Source: J.P. Morgan Asset Management.

19

MARKET PERFORMANCE AS OF 6/30/17

United States Equities

Short Term Annualized

QTD YTD 1 Year 3 Year 5 Year 7 Year 10 Year

S&P 500 3.09% 9.34% 17.90% 9.61% 14.63% 15.41% 7.18%

S&P 500 Value 1.51% 4.85% 15.86% 7.79% 13.82% 14.09% 5.25%

S&P 500 Growth 4.42% 13.33% 19.30% 11.03% 15.24% 16.57% 8.97%

Russell Mid Cap 2.70% 7.99% 16.48% 7.69% 14.72% 15.28% 7.67%

Russell Mid Cap Value 1.37% 5.18% 15.93% 7.46% 15.14% 15.29% 7.23%

Russell Mid Cap Growth 4.21% 11.40% 17.05% 7.83% 14.19% 15.24% 7.87%

Russell 2000 2.46% 4.99% 24.60% 7.36% 13.70% 14.35% 6.92%

Russell 2000 Value 0.67% 0.54% 24.86% 7.02% 13.39% 13.50% 5.92%

Russell 2000 Growth 4.39% 9.97% 24.40% 7.64% 13.98% 15.16% 7.82%

International Equities


MSCI EAFE 6.12% 13.81% 20.27% 1.15% 8.69% 7.91% 1.03%

MSCI EAFE Value 4.78% 11.12% 25.01% -0.59% 8.12% 7.15% -0.08%

MSCI EAFE Growth 7.52% 16.68% 15.70% 2.81% 9.19% 8.60% 2.06%

MSCI Japan 5.19% 9.92% 19.18% 5.54% 9.56% 7.46% 1.21%

MSCI AC Europe 7.56% 15.49% 21.72% 0.03% 8.92% 8.39% 0.97%

MSCI AC Asia Ex Japan 8.31% 22.81% 26.73% 5.02% 7.97% 6.92% 4.19%

MSCI EM 6.27% 18.43% 23.75% 1.07% 3.96% 3.87% 1.91%

MSCI EM Asia 8.74% 23.31% 28.26% 5.37% 8.11% 6.91% 4.18%

MSCI EM Europe 2.68% 4.11% 19.42% -7.53% -2.24% -0.65% -4.54%

MSCI EM Latin America -1.61% 10.32% 15.40% -6.33% -3.48% -2.03% -0.89%

Fixed Income


BBgBarc US Agg Bond 1.45% 2.27% -0.31% 2.48% 2.21% 3.19% 4.48%

BBgBarc US Corporate High Yield 2.17% 4.93% 12.70% 4.48% 6.89% 8.15% 7.67%

BBgBarc US Govt 1-3 Yr 0.20% 0.48% -0.07% 0.71% 0.65% 0.79% 2.01%

Credit Suisse Leveraged Loan 0.75% 1.96% 7.49% 3.49% 4.83% 5.29% 4.16%

BBgBarc Municipal 1.96% 3.57% -0.49% 3.33% 3.26% 4.21% 4.60%

S&P 500 Sector Performance

Short Term Annualized


S&P 500 Cons Disc 2.35% 11.00% 16.90% 12.21% 17.41% 19.45% 10.47%

S&P 500 Cons Staples 1.57% 8.03% 3.06% 10.19% 12.61% 14.82% 10.46%

S&P 500 Energy -6.36% -12.61% -4.14% -10.51% 1.64% 6.18% 1.28%

S&P 500 Financials 4.25% 6.88% 35.37% 12.36% 18.00% 14.06% 0.39%

S&P 500 Health Care 7.10% 16.07% 12.47% 11.02% 17.86% 18.13% 10.57%

S&P 500 Industrials 4.73% 9.51% 22.27% 10.24% 16.06% 16.27% 7.65%

S&P 500 Info Technology 4.14% 17.23% 33.89% 15.95% 17.18% 17.86% 10.70%

S&P 500 Materials 3.17% 9.21% 18.59% 4.74% 11.09% 12.51% 5.36%

S&P 500 Real Estate 2.76% 6.40% -0.42% 9.00% 9.79% 14.18% 5.70%

S&P 500 Telecom Services -7.05% -10.74% -11.71% 4.03% 5.85% 11.45% 3.69%

S&P 500 Utilities 2.21% 8.75% 2.47% 9.37% 11.17% 13.48% 6.97%

Returns for time periods of 1 year or longer are annualized.

Alternatives


Bloomberg Commodity -3.00% -5.26% -6.50% -14.81% -9.25% -5.68% -6.49%

Alerian MLP Infrastructure -6.90% -3.08% 1.17% -9.91% 2.89% 6.92% 6.62%

HFRI Fund of Fund Index 0.20% 2.59% 5.85% 1.35% 3.75% 2.93% 0.81%

20

FIXED INCOME MARKETS

As of 6/30/2017. Sources: Bloomberg, FactSet and Eaton Vance.

10-Year Government Bond Yields

Credit Spreads

Average spreads in basis points. Reported 6/30/2017. Corporate spreads are in basis points and measure option-adjusted yield spread to comparable maturity US Treasuries. Loan index spread represents the three-year spread over

LIBOR. Sources: JP Morgan, LCD and Eaton Vance.

21

THE CYCLICAL NATURE OF ASSET CLASS RETURNS

20%

15%

10%

5%

%

5%

10%

15%

20%

25%

30%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Domestic vs. International Stocks

Rolling 3-Year Returns Ended December 31, 2016

Domestic Outperformed

30%

20%

10%

%

10%

20%

30%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Stocks vs. Bonds


Stocks Outperformed

15%

10%

5%

%

5%

10%

15%

20%

25%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

U.S. Large Cap vs. U.S. Small Cap Stocks


Large Outperformed

20%

15%

10%

5%

%

5%

10%

15%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Growth vs. Value Stocks (U.S.)


Value Outperformed

International OutperformedBonds Outperformed

Small Outperformed

Growth Outperformed

22

LastQuarter

YearTo

Date

1Year

3Years

5Years

7Years

10Years

SinceInception

InceptionDate

Large Cap Equity

Dodge & Cox Stock 1.76 (61) 6.81 (18) 28.65 (3) 8.48 (5) 16.36 (1) 15.66 (3) 5.89 (21) 18.92 (7) 10/01/2015S&P 500 Value 1.51 (65) 4.85 (65) 15.86 (68) 7.79 (11) 13.82 (23) 14.09 (20) 5.25 (41) 16.45 (19)IM U.S. Large Cap Value Equity (MF) Median 2.04 5.64 17.28 6.64 13.01 13.04 4.86 14.61

Vanguard S&P 500 3.07 (48) 9.31 (36) 17.85 (44) 9.58 (15) 14.59 (20) 15.38 (13) 7.18 (21) 16.66 (18) 10/01/2015S&P 500 Index 3.09 (47) 9.34 (35) 17.90 (43) 9.61 (15) 14.63 (19) 15.41 (12) 7.18 (20) 16.70 (17)IM U.S. Large Cap Core Equity (MF) Median 3.02 8.76 17.24 8.06 13.63 14.09 6.32 15.06

Harbor Capital Appreciation Instl 6.00 (35) 17.28 (25) 24.40 (14) 10.66 (30) 15.25 (23) 16.04 (24) 9.23 (14) 13.82 (65) 10/01/2015S&P 500 Growth 4.42 (75) 13.33 (74) 19.30 (63) 11.03 (21) 15.24 (25) 16.57 (12) 8.97 (20) 16.51 (16)IM U.S. Large Cap Growth Equity (MF) Median 5.34 15.30 20.41 9.69 14.16 14.89 8.03 14.49

Mid Cap Equity

BlackRock Mid Cap Value -1.41 (97) 0.96 (94) 15.64 (69) 3.98 (87) 12.51 (84) 13.43 (67) 6.68 (43) 13.98 (63) 10/01/2015Russell Midcap Value Index 1.37 (55) 5.18 (39) 15.93 (66) 7.46 (22) 15.14 (16) 15.29 (10) 7.23 (28) 16.25 (20)IM U.S. Mid Cap Value Equity (MF) Median 1.42 4.29 17.12 6.28 14.01 14.04 6.34 14.72

Vanguard Mid Cap Index 2.77 (27) 9.13 (12) 17.25 (38) 8.07 (14) 14.78 (13) 15.16 (10) 7.48 (16) 13.89 (41) 10/01/2015CRSP U.S. Mid Cap TR Index 2.79 (26) 9.17 (11) 17.31 (37) 8.12 (13) 14.79 (13) 15.36 (7) 7.47 (17) 13.93 (39)IM U.S. Mid Cap Core Equity (MF) Median 1.79 6.14 16.35 5.95 13.01 13.12 6.10 13.21

Janus Enterprise 6.45 (17) 14.09 (30) 21.16 (27) 12.28 (1) N/A N/A N/A 18.33 (1) 10/01/2015Russell Midcap Growth Index 4.21 (61) 11.40 (67) 17.05 (59) 7.83 (33) 14.19 (26) 15.24 (19) 7.87 (25) 13.33 (39)IM U.S. Mid Cap Growth Equity (MF) Median 4.85 12.28 18.00 6.78 12.45 13.59 6.96 12.29

Small Cap Equity

DFA US Small Cap Value -0.56 (69) -1.90 (68) 21.86 (47) 4.72 (62) 13.97 (25) 14.44 (16) 5.89 (43) 15.25 (66) 10/01/2015Russell 2000 Value Index 0.67 (47) 0.54 (41) 24.86 (33) 7.02 (30) 13.39 (35) 13.50 (29) 5.92 (42) 19.34 (28)IM U.S. Small Cap Value Equity (MF) Median 0.58 -0.43 21.70 5.33 12.69 12.66 5.66 16.72

Vanguard Small Cap Index 1.95 (42) 5.76 (14) 19.14 (82) 6.78 (51) 14.13 (43) 15.02 (34) 7.83 (23) 15.67 (51) 10/01/2015CRSP U.S. Small Cap TR Index 1.93 (43) 5.75 (14) 19.09 (82) 6.75 (51) 14.34 (37) 15.30 (25) 8.19 (12) 15.64 (52)IM U.S. Small Cap Core Equity (MF) Median 1.71 2.52 22.11 6.79 13.71 13.92 5.92 15.73

Voya Small Cap Opportunities 3.30 (73) 9.84 (40) 23.37 (71) 8.08 (41) N/A N/A N/A 16.55 (31) 10/01/2015Russell 2000 Growth Index 4.39 (61) 9.97 (40) 24.40 (66) 7.64 (43) 13.98 (39) 15.16 (44) 7.82 (41) 15.00 (42)IM U.S. Small Cap Growth Equity (MF) Median 5.06 8.04 25.80 6.51 12.75 14.76 7.36 13.46


American Beacon Intl Equity Instl 5.80 (40) 13.15 (38) 19.17 (68) 0.10 (36) 8.44 (1) 8.00 (8) 1.34 (11) 9.11 (70) 10/01/2015MSCI EAFE Value Index (Net) 4.78 (58) 11.12 (93) 25.01 (1) -0.59 (62) 8.12 (10) 7.15 (51) -0.08 (41) 10.89 (4)IM International Large Cap Value Equity (MF) Median 5.02 12.15 20.70 -0.38 7.30 7.18 -0.25 9.45

Table of Returns

TIAA Traditional Annuity Returns show current quarter's credit rate.

23

Table of Returns

LastQuarter

YearTo

Date

1Year

3Years

5Years

7Years

10Years

SinceInception

InceptionDate

Vanguard Total Intl Stock Index 5.82 (66) 14.79 (63) 20.05 (47) 1.35 (52) 7.68 (51) 7.12 (54) N/A 12.79 (45) 10/01/2015FTSE Global ex USA All Cap Index 5.83 (66) 14.27 (70) 20.75 (42) 1.65 (46) 8.11 (44) 7.46 (47) 1.90 (39) 13.29 (41)IM International Equity (MF) Median 6.41 15.96 19.73 1.39 7.69 7.29 1.32 12.26

American Funds EuroPacific Gr 7.69 (27) 17.78 (18) 22.18 (9) 3.72 (24) 9.61 (4) 8.67 (22) N/A 12.30 (15) 10/01/2015MSCI EAFE Growth Index (Net) 7.52 (41) 16.68 (33) 15.70 (72) 2.81 (45) 9.19 (16) 8.60 (24) 2.06 (70) 11.34 (38)IM International Large Cap Growth Equity (MF) Median 7.26 16.26 17.77 2.59 7.97 7.97 2.36 10.59

Fixed Income

Met West Total Return 1.29 (75) 2.21 (67) 0.25 (54) 2.28 (42) 3.49 (4) 4.57 (3) 6.00 (1) 2.44 (64) 10/01/2015Bloomberg Barclays U.S. Aggregate Index 1.45 (52) 2.27 (62) -0.31 (73) 2.48 (27) 2.21 (54) 3.19 (57) 4.48 (40) 2.48 (62)IM U.S. Broad Market Core Fixed Income (MF) Median 1.45 2.41 0.32 2.19 2.27 3.30 4.32 2.67

Vanguard Total Bond Market Idx 1.48 (46) 2.40 (52) -0.44 (77) 2.43 (33) 2.13 (60) 3.11 (61) 4.45 (42) 2.50 (61) 10/01/2015Bloomberg Barclays U.S. Aggregate Index 1.45 (52) 2.27 (62) -0.31 (73) 2.48 (27) 2.21 (54) 3.19 (57) 4.48 (40) 2.48 (62)IM U.S. Broad Market Core Fixed Income (MF) Median 1.45 2.41 0.32 2.19 2.27 3.30 4.32 2.67

TIAA Traditional Annuity RC-401(a) 1.07 (1) 2.14 (1) 4.18 (1) 4.14 (1) 4.05 (1) 4.05 (1) 4.25 (1) 4.21 (1) 10/01/2015Ryan 3 Yr GIC Master Index 0.39 (94) 0.77 (94) 1.48 (91) 1.28 (100) 1.21 (100) 1.56 (100) 2.44 (76) 1.41 (95)IM U.S. GIC/Stable Value (SA+CF) Median 0.46 0.90 1.79 1.82 1.78 2.16 2.66 1.83

TIAA Traditional Annuity RCP-403(b) & 457 0.88 (1) 1.77 (1) 3.41 (1) 3.37 (1) 3.27 (1) 3.27 (1) 3.45 (3) 3.44 (1) 10/01/2015Ryan 3 Yr GIC Master Index 0.39 (94) 0.77 (94) 1.48 (91) 1.28 (100) 1.21 (100) 1.56 (100) 2.44 (76) 1.41 (95)IM U.S. GIC/Stable Value (SA+CF) Median 0.46 0.90 1.79 1.82 1.78 2.16 2.66 1.83

Specialty

TIAA-CREF:Soc Ch Eq;Inst 3.81 (18) 9.09 (35) 18.85 (36) 7.85 (33) 14.14 (37) 14.21 (37) 7.04 (25) 16.60 (9) 10/01/2015S&P 500 Index 3.09 (36) 9.34 (30) 17.90 (50) 9.61 (8) 14.63 (21) 15.41 (8) 7.18 (23) 16.70 (8)IM U.S. Multi-Cap Core Equity (MF) Median 2.76 8.40 17.86 7.03 13.49 13.66 5.98 13.77

Cash & Equivalents

Vanguard Federal Money Market 0.18 (18) 0.30 (18) 0.46 (16) 0.22 (14) 0.14 (15) 0.10 (17) 0.61 (17) 4.29 (36) 08/01/198190 Day U.S. Treasury Bill 0.20 (13) 0.30 (18) 0.44 (19) 0.20 (16) 0.15 (13) 0.13 (11) 0.55 (32) 4.35 (25)IM U.S. Taxable Money Market (MF) Median 0.12 0.18 0.22 0.09 0.06 0.04 0.48 4.20

Target Date Funds

Vanguard Target Retirement Income 1.77 (71) 4.27 (78) 5.23 (82) 3.47 (59) 4.91 (87) 6.04 (86) 4.97 (1) 6.15 (83) 10/01/2015Vanguard Target Income Composite Index 1.81 (69) 4.27 (78) 5.38 (81) 3.63 (53) 5.10 (86) 6.18 (85) 5.02 (1) 6.35 (82)IM Retirement Income (MF) Median 2.01 5.54 8.29 3.66 7.08 7.76 2.53 8.23

Vanguard Target Retirement 2010 1.77 (84) 4.34 (89) 5.39 (94) 3.49 (43) 5.82 (67) 7.15 (47) 4.54 (13) 6.33 (90) 10/01/2015Vanguard Target 2010 Composite Index 1.81 (80) 4.31 (89) 5.58 (93) 3.66 (35) 6.01 (55) 7.27 (44) 4.59 (12) 6.57 (83)IM Mixed-Asset Target 2010 (MF) Median 2.10 5.30 7.45 3.40 6.05 7.13 3.80 7.48


24

Table of Returns

LastQuarter

YearTo

Date

1Year

3Years

5Years

7Years

10Years

SinceInception

InceptionDate









Vanguard Target Retirement 2055 3.84 (56) 10.24 (46) 16.99 (45) 5.93 (26) 11.15 (27) N/A N/A 13.68 (35) 10/01/2015Vanguard Target 2055 Composite Index 3.83 (56) 10.11 (54) 17.29 (39) 6.23 (15) 11.46 (14) 11.96 (21) N/A 14.02 (16)IM Mixed-Asset Target 2055+ (MF) Median 3.87 10.18 16.74 5.44 10.65 11.13 5.71 13.34

Vanguard Target Retirement 2060 3.86 (53) 10.26 (44) 17.00 (45) 5.92 (27) 11.17 (26) N/A N/A 13.70 (34) 10/01/2015Vanguard Target 2060 Composite Index 3.83 (56) 10.11 (54) 17.29 (39) 6.23 (15) 11.46 (14) N/A N/A 14.02 (16)IM Mixed-Asset Target 2055+ (MF) Median 3.87 10.18 16.74 5.44 10.65 11.13 5.71 13.34


25

Criteria

Organization PeoplePhilosophy& Process

StyleConsistency

Asset Base Performance Expenses Overall

Costs

Exp Ratio(%)

MedianExp Ratio

(%)

Ratio ofExp to

Median (%)

Dodge & Cox Stock (DODGX) 0.52 1.04 50.00Vanguard 500 Index;Adm (VFIAX) 0.05 1.05 4.76Harbor:Cap Apprec;Inst (HACAX) 0.65 1.08 60.19BlackRock:Md Cp Div;I (MARFX) 0.94 1.16 81.03Vanguard Md-Cp Idx;Adm (VIMAX) 0.06 1.21 4.96Jns Hndsn:Enterprise;N (JDMNX) 0.67 1.27 52.76DFA US Small Cap Val;I (DFSVX) 0.52 1.25 41.60Vanguard Sm-Cp Idx;Adm (VSMAX) 0.06 1.19 5.04Voya:SmCp Opptys;R6 (ISOZX) 0.99 1.34 73.88Am Beacon:Intl Eq;Inst (AAIEX) 0.70 1.07 65.42Vanguard Tot I Stk;Adm (VTIAX) 0.11 1.16 9.48American Funds EuPc;R6 (RERGX) 0.50 1.19 42.02Met West:Total Return;I (MWTIX) 0.44 0.76 57.89Vanguard Tot Bd;Adm (VBTLX) 0.05 0.76 6.58TIAA-Traditional 0.00 0.00 0.00TIAA-CREF:Soc Ch Eq;Inst (TISCX) 0.18 1.19 15.13Vanguard Fed MM;Inv (VMFXX) 0.11 0.55 16.36Vanguard Target Date (VTHRX) 0.15 0.91 16.48

Legend For Overall Criteria

No/Minimum ConcernsMinor ConcernMajor ConcernUnder Review

New No/Minimum ConcernsUpgrade to Minor ConcernDowngrade to Minor ConcernNew Major Concern

Manager Score Factor Comments

Harbor:Cap Apprec;Inst (HACAX) Style Consistency The fund has a significant overweight to IT and recently it's weighting in the sector has hit the highest level since inception. Thesignificant overweight warrants additional monitoring and due diligence, although we remain confident in the manager's ability toperform over the long term.

BlackRock:Md Cp Div;I (MARFX) People Because of a change of the entire investment team, we are recommending that clients replace it.BlackRock:Md Cp Div;I (MARFX) Philosophy & Process Both the investment team and the investment approach are changing, and so we are recommending that clients replace the fund.BlackRock:Md Cp Div;I (MARFX) Performance This fund's performance has been hampered by stock selection, especially in the consumer discretionary, materials, and industrials

sectors.BlackRock:Md Cp Div;I (MARFX) Overall Due to the dramatic changes to the fund, we are recommending that clients replace it.Jns Hndsn:Enterprise;N (JDMNX) Organization Janus Capital Group and Henderson Group completed their merger during the second quarter of 2017. We will continue to monitor

the newly formed firm, Janus Henderson Investors, to ensure the strategy’s philosophy, process, and team remain unaffected bythe merger.

Voya:SmCp Opptys;R6 (ISOZX) People Jeff Becker stepped down as CEO of Voya Investment Management on September 1, 2016. Christine Hurtsellars, former head ofFixed Income, will replace him, leading to a number of position shifts internally. We will continue to monitor the transition.

TIAA-Traditional Exp Ratio (BasisPoints)

Expenses cannot be determined as it is a spread product.

Manager Score Card

The Expense Ratio and Median Expense Ratio for Hedge Fund of Funds and Private Equity Fund of Funds excludes underlying fund expenses; the expenses shown are only at the Fund of Funds level.

26

Manager Score CardManager Score Factor Comments

TIAA-CREF:Soc Ch Eq;Inst (TISCX) People Bill Riegel, the CIO of TIAA-CREF, has announced that he intends to retire, effective April 1, 2017. TIAA-CREF has a large talentpool and a number of months to search for an ideal candidate, so we will continue to monitor the situation but do not feel abundantcause for concern.

The Expense Ratio and Median Expense Ratio for Hedge Fund of Funds and Private Equity Fund of Funds excludes underlying fund expenses; the expenses shown are only at the Fund of Funds level.

27

Mar-2017 Jun-2017

($) % ($) %

Large Cap Equity

CREF Equity Index 81,758 3.59 85,263 3.67CREF Growth 94,326 4.14 100,237 4.31Total Large Cap Equity 176,084 7.72 185,500 7.98

Global Equity

CREF Global Equities 195,968 8.60 205,467 8.84CREF Stock 664,698 29.16 691,609 29.76Total Global Equity 860,666 37.76 897,076 38.60

Fixed Income

CREF Bond Market 39,091 1.71 40,795 1.76CREF Inflation-Linked Bond 10,087 0.44 10,404 0.45Total Fixed Income 49,178 2.16 51,199 2.20

Fixed Account

TIAA Traditional GRA 829,594 36.39 836,058 35.98

Real Estate

TIAA Real Estate 156,991 6.89 159,765 6.87

Specialty Equity

CREF Social Choice 45,139 1.98 46,512 2.00

Cash

CREF Money Market 161,823 7.10 147,829 6.36

LPS 401(a) Legacy Total Fund 2,279,475 100.00 2,323,939 100.00

Asset Allocation - 401(a) Legacy

28

Mar-2017 Jun-2017

($) % ($) %

Large Cap Equity

CREF Equity Index 381,315 4.84 469,026 5.96CREF Growth 246,629 3.13 263,759 3.35Large Cap Equity 627,944 7.97 732,785 9.31

Global Equity

CREF Global Equities 441,319 5.60 460,799 5.86CREF Stock 2,037,561 25.87 1,941,137 24.67Global Equity 2,478,880 31.47 2,401,936 30.52

Fixed Income

CREF Bond Market 231,477 2.94 231,286 2.94CREF Inflation-Linked Bond 99,402 1.26 95,883 1.22Fixed Income 330,879 4.20 327,169 4.16

Fixed Account

TIAA Traditional GSRA 3,569,393 45.32 3,578,999 45.48

Real Estate

TIAA Real Estate 444,567 5.64 398,164 5.06

Specialty Equity


Cash & Equivalents

CREF Money Market 209,219 2.66 208,823 2.65Loan Default Fund 7,405 0.09 7,482 0.10Cash & Equivalents 216,624 2.75 216,305 2.75

LPS 403(b) Legacy 7,875,843 100.00 7,869,226 100.00

Asset Allocation - 403(b) Legacy

29

Mar-2017 Jun-2017

($) % ($) %

Large Cap Equity

CREF Equity Index 91,458 3.58 94,080 3.70CREF Growth 90,621 3.55 95,387 3.76Total Large Cap Equity 182,079 7.14 189,466 7.46

Global Equity

CREF Global Equities 42,079 1.65 43,899 1.73CREF Stock 420,164 16.46 409,756 16.13Total Global Equity 462,243 18.11 453,656 17.86

Fixed Income

CREF Bond Market 76,517 3.00 77,628 3.06CREF Inflation-Linked Bond 40,934 1.60 40,710 1.60Total Fixed Income 117,451 4.60 118,338 4.66

Fixed Account

TIAA Traditional GSRA 1,629,401 63.85 1,620,127 63.79

Real Estate

TIAA Real Estate 111,042 4.35 107,302 4.22

Specialty Equity


Cash

CREF Money Market 8,343 0.33 8,347 0.33

457(b) Legacy Total Fund 2,551,897 100.00 2,539,832 100.00

Asset Allocation - 457 Legacy

30

LastQuarter

YearTo

Date

1Year

3Years

5Years

7Years

10Years

SinceInception

InceptionDate

Large Cap Equity

CREF Equity Index 2.94 8.75 18.14 8.76 14.15 14.90 6.86 9.30 05/01/1994S&P 500 Index 3.09 9.34 17.90 9.61 14.63 15.41 7.18 9.65

CREF Growth 5.34 14.92 20.86 10.61 15.17 16.07 8.68 8.39 05/01/1994S&P 500 Growth 4.42 13.33 19.30 11.03 15.24 16.57 8.97 10.05

Global Equity

CREF Global Equities 4.41 11.21 18.71 5.03 11.06 11.21 3.91 7.54 05/01/1992MSCI World (net) 4.03 10.66 18.20 5.24 11.38 11.38 3.97 7.41

CREF Stock 3.89 10.88 19.08 6.39 12.12 12.47 5.22 9.82 08/01/1952MSCI AC World IMI (Net) 4.25 11.32 19.01 4.87 10.74 10.65 3.95 N/A

Fixed Income

CREF Bond Market 1.53 2.56 0.50 2.59 2.42 3.34 4.19 5.94 04/01/1990Bloomberg Barclays U.S. Aggregate Index 1.45 2.27 -0.31 2.48 2.21 3.19 4.48 6.18

CREF Inflation-Linked Bond -0.47 0.59 -0.55 0.19 -0.14 2.44 3.81 5.03 06/01/1997Bloomberg Barclays U.S. TIPS Index -0.40 0.85 -0.63 0.63 0.27 2.87 4.27 5.46

Fixed Account

TIAA Traditional GRA-401(a) 1.00 2.02 3.92 3.84 3.72 3.71 3.91 3.71 06/01/2010Ryan 3 Yr GIC Master Index 0.39 0.77 1.48 1.28 1.21 1.56 2.44 1.59

TIAA Traditional GSRA-403(b) & 457 1.00 2.01 4.06 3.88 3.73 3.73 N/A 3.71 04/01/2012Ryan 3 Yr GIC Master Index 0.39 0.77 1.48 1.28 1.21 1.56 2.44 1.23

Real Estate

TIAA Real Estate 0.80 1.94 3.93 7.18 9.38 10.97 3.39 6.66 11/01/1995NCREIF ODCE 1.71 3.51 7.88 11.34 11.79 13.08 5.25 9.27

Specialty Equity

CREF Social Choice 3.12 7.01 10.89 4.76 8.49 9.01 5.42 8.29 04/01/199020%S&P500,20%S&P500V,60%BCAgg 2.05 4.98 6.72 5.33 7.13 8.09 6.00 7.89

Cash & Equivalents

CREF Money Market 0.17 0.28 0.43 0.20 0.13 0.11 0.67 1.90 08/01/199990 Day U.S. Treasury Bill 0.20 0.30 0.44 0.20 0.15 0.13 0.55 1.79

Table of Returns


31

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