Fixed Income Taxable Intermediate $246,050,126 Emerging Markets $35,453,507 Cash & Equivalents $2,622,416

Gwinnett County, Georgia Retirement Plans Management Committee August 23, 2012 Regular Meeting 8:00 AM Gwinnett Justice and Administrative Center, Conference Room C

Agenda

1. Adoption of Agenda * Kenneth Poe

2. Approval of Minutes * Kenneth Poe May 24, 2012 Meeting

3. Electronic Agenda Review *** Aaron Bovos

4. Performance Reports – Fund Reports

a. 2nd Quarter DB Plan *** UBS

i. Institutional Perspectives ii. July Investment Strategy Guide iii. Investment Performance Report iv. Fee Schedule – 2nd Quarter v. Manager Watch List vi. Downgraded Bonds

b. 2nd Quarter DC Plans *** Great West

i. Fund Performance Review – AAG ii. Executive Summary 1) Plan Review

5. Investment Committee Reports *** Mike Ludwiczak

a. Acceptance of recommendation to add * Sands Capital Management as a Large Cap Manager b. Acceptance of recommendation to remove * Janus Global Select T Fund from DC Plans Investment Fund Options c. Acceptance of the Proposal to conduct an * OPEB Experience Study by Cavanaugh MacDonald

6. Review of Forfeiture Assets and Revenue Sharing *** Aaron Bovos Account 7. Past Quarter Participation and Education *** Debbi Davidson Fred Minot a. Participation Numbers b. Education Update

8. Report on due diligence trip to Great West *** Kenneth Poe Mike Ludwiczak

9. Financial Advisor RFP Update *** Kenneth Poe

10. Deferred Vested Project Update *** Debbi Davidson

11. Proposed change to 457(b) eligibility * Debbi Davidson

12. Review 2012 Goals *** Kenneth Poe

13. Vendor Annual Review *** Kenneth Poe Mike Ludwiczak a. Contract Review b. Investment Committee Review c. Survey Results a. RPMC and Investment Committee Survey b. Participant Survey

14. Next Meeting – November 15, 2012 *** Kenneth Poe

15. Public Comments (Limited to 30 minutes) **

*Action Items

**Speakers wishing to address the RPMC must report to the Clerk of the Committee prior to the meeting being called to order. Speakers are limited to 3 minutes or less.

***Information items requiring no action.

NEXT SECTION Gwinnett County, Georgia Retirement Plans Management Committee May 24, 2012 Regular Meeting Minutes 8:00 AM Gwinnett Justice and Administrative Center, Conference Room C

Members Present: Jim Underwood, Aaron Bovos, Glenn Stephens, Kenneth Poe, Ken Chadwick, David Crews, Ashley Stinson

Chairman Kenneth Poe called the meeting to order at 8:10 AM.

Adoption of Agenda

Jim Underwood made the motion to approve the Agenda and David Crews seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson – Yes.

Approval of minutes

Aaron Bovos made the motion to approve the Minutes for the February 23, 2012 Regular meeting and Glenn Stephens seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson - Yes.

Introduce new member of RPMC

Kenneth Poe introduced Ashley Stinson, an attorney in Juvenile Court, as the new board member to complete the remainder of Stan Hall’s term.

Electronic agenda and supporting document training

Debbi Davidson presented the instructions for the electronic agenda and supporting documents. The RPMC agenda and supporting documents will be distributed through an electronic process beginning the next quarterly meeting.

Performance Reports Executive Summaries

First Quarter DB Plan Investment Performance Report- The report for the first quarter of 2012 was presented by Allen Wright and Scott Olsen of the consulting firm UBS Institutional Consulting. Gwinnett County is doing exceptionally well. The plan is in the top 1% for all plans in our comparable universe.

The Market Value of the DB Plan as of 03/31/2012 was $721,375.376. This amount is invested in the following accounts (Gross of Fees).

Large Cap Growth $94,214,765 Large Cap Value $92,461,936 Mid Cap $296,553 Mid Cap Core $18,773,276 Mid Cap Growth $18,785,216 Mid Cap Value $18,779,626 Small Cap Blend $60,011,041 REITS $33,777,570 Foreign Developed Blend $100,149,344 Fixed Income Taxable Intermediate $246,050,126 Emerging Markets $35,453,507 Cash & Equivalents $2,622,416

Third Quarter DC and 457 Plans Fund Performance-

The report on the funds in these plans was presented by Mr. Bill Thornton of Advised Assets Group. There are no big concerns with current funds. Donald Erwin of Great West Retirement Services presented the Plan Review for April 1, 2011 through March 31, 2012. Plan assets were at $208,590,000 as of March 31, 2012. Plan assets grew by $ 12.95 million (6.6%) during this time period. The average account balance per participant was $32,644 for the 401(a) Plan and $23,932 for the 457(b) Plan. The County is doing very well compared to other governments on contributions by assets class. The average number of Investment Options per Participant was 8.0 for the 401(a) Plan and 6.7 for the 457(b) Plan.

Past Quarter Education and Participation Information

Participation Information – Current Active Participants DB Plan 2,107 DC Plan 2,263 Deferred Comp 2,882

Retirees Retirees Receiving DB Pensions 1,756 Retirees with Health Insurance 1,394

Use of Forfeiture Accounts and Revenue Sharing Assets- o The 401(h) forfeiture balances continues to be used to fund employer contributions for 2012. As of May 2012, $120,168.29 has been used from the Forfeiture Account for 401(h) employer contributions.

A report was made on the Deferred Vested project. The project identified 960 Deferred Vested participants. Of the 960, 343 have been completed to date. The planned completion date for this project is the end of the year providing that the County has sufficient resources.

Audit Committee Report

Maria Woods, Audit Committee Chair, presented the minutes for the Audit Committee Meeting on May 22, 2012 regular meeting.

Joel Black of Mauldin and Jenkins presented 2011 Audit Results. The Plans received an Unqualified (“clean”) opinion on the basic financial statements. Funds for both plans continue to grow and the funding status is stable for the Defined Benefit Plan and growing for the OPEB Plan.

Glenn Stephens made the motion to accept the 2011 Audit Results and Aaron Bovos seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson - Yes.

Actuarial Reports

Todd Green of Cavanaugh Macdonald Consulting, LLC presented the Annual Valuation as of January 1, 2012. The Annual Required Contribution (ARC) for the County increased from 30.28% to 31.30% of covered payroll. The DB Plan experienced gains as a result of less than expected pay increases and additional contributions and the plan had losses from less than expected investment returns and demographic experience being different from assumptions.

Alisa Bennett of Cavanaugh Macdonald Consulting, LLC presented the Health Insurance Plan 2012 Actuarial Valuation Results. The Unfunded Actuarial Liability amortization period remains at 30 years and a level percentage of pay. She recommended that the RPMC may want to discuss completing an experience study for the OPEB Trust.

Update on progress of 2012 Goals

Several of the goals for 2012 have been accomplished in the first quarter.

For the goal of an RFP’s for Investment Consulting and Planning Services, an update was given on the RFP status of the goal to implementing Investment Consulting and Planning Services. There were four responses to the RFP. There will be three interviews of the proposers in the next few months.

Investment Committee Recommendations and Reports-

Mike Ludwiczak, Investment Committee Chair, presented the changes to the Statement of Investment Policy on Operating Cash and Targeted Cash Levels.

Jim Underwood made the motion to approve the changes made to the Statement of Investment Policy and Glenn Stephens seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson - Yes.

Fiduciary Training-

Ed Emerson of Bryan Cave provided Fiduciary Training. Attendees receiving the training included members of the RPMC. Jim Underwood, Kenneth Poe, Ken Chadwick, Glenn Stephens, David Crews, Aaron, Bovos, Ashley Stinson; members of the Audit Committee: Maria Woods, Debbi Davidson, Tom Savage; members of the Investment Committee: Mike Ludwiczak, Bill Rodenbeck, Karen Karasinski, Beth Horacek, Paul Turner; and Staff: Sue Rooks.

Next Meeting August 23, 2012, Gwinnett Justice and Administration Center, Conference Room C at 8:00 a.m.

Public Comments (Limited to 30 minutes)- There were no public comments.

Ken Chadwick made the motion to adjourn and David Crews seconded it. (Vote 7 – 0) Poe – Yes; Underwood – Yes; Bovos –Yes; Stephens – Yes; Chadwick – Yes; Crews – Yes; Stinson - Yes.

The meeting adjourned at 11:20 a.m.

NEXT SECTION New Electronic Agenda Distribution Process

In an effort to create a more efficient process, as of the November 15, 2012 meeting, we will be switching to an electronic agenda distribution process.

1. One week in advance of the meeting, an e-mail containing the agenda as an attached Adobe PDF file will be sent to all members.

2. The agenda will include bookmarks that link directly to the documents that will be referenced during the meeting. Each document will coincide with a specific agenda item and when the link is selected the document will appear on the screen.

3. Members can access Adobe PDF files at any computer with Adobe software.

4. Members will be provided a laptop at meetings, or they can bring their own Provided laptops will be loaded with PDF file containing agenda

NEXT SECTION Institutional Perspectives Market Performance Report June 30, 2012

2012 quarterly returns Annualized returns ending 6/30/2012

Index YTD Q1 Q2 Q3 Q4 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs S&P 500 9.49 12.59 -2.75 5.45 16.40 0.22 4.09 5.33 DJIA 6.83 8.84 -1.85 6.63 18.25 2.00 6.06 6.01 NASDAQ Comp 13.28 18.96 -4.78 6.99 18.11 3.42 6.17 8.06 Wilshire 5000 9.40 12.90 -3.10 3.97 16.94 0.58 4.53 6.12 Russell 3000 9.32 12.87 -3.15 3.84 16.73 0.39 4.29 5.81 Russell 3000G 9.98 14.58 -4.02 5.05 17.55 2.79 5.53 6.13 Russell 3000V 8.64 11.16 -2.26 2.64 15.93 -2.10 2.95 5.37 Russell 1000 9.38 12.90 -3.12 4.37 16.64 0.39 4.26 5.72 Russell 1000G 10.08 14.69 -4.02 5.76 17.50 2.87 5.50 6.03 Russell 1000V 8.68 11.12 -2.20 3.01 15.80 -2.19 2.92 5.28 Russell 2000 8.53 12.44 -3.47 -2.08 17.80 0.54 4.60 7.00 Russell 2000G 8.81 13.28 -3.94 -2.71 18.09 1.99 5.73 7.39 Russell 2000V 8.23 11.59 -3.01 -1.44 17.43 -1.05 3.38 6.50 Russell Mid Cap 7.97 12.94 -4.40 -1.65 19.44 1.06 5.42 8.45 Russell Mid CapG 8.10 14.52 -5.60 -2.99 19.01 1.90 5.84 8.47 Russell Mid CapV 7.78 11.41 -3.26 -0.37 19.92 -0.13 4.77 8.17 MSCI EAFE 3.38 10.98 -6.85 -13.38 6.45 -5.63 2.79 5.62 MSCI Emerging Mkts 4.12 14.14 -8.77 -15.67 10.10 0.21 10.39 14.42 BC Aggregate 2.37 0.30 2.06 7.47 6.93 6.79 5.58 5.63 BC Int Aggregate 1.99 0.66 1.32 5.28 5.98 6.25 5.30 5.19 BoA-ML C/G 1–3 yr 0.69 0.45 0.24 1.18 2.30 3.64 3.63 3.39 BC IGC 2.10 0.61 1.48 5.42 5.81 6.01 5.07 5.08 BC GC 2.65 0.08 2.56 8.78 7.34 6.90 5.53 5.79 BC US Treasury 1.51 -1.29 2.83 9.04 5.95 6.91 5.44 5.50 BC Gov 1.48 -1.12 2.63 8.32 5.65 6.64 5.34 5.36 BC US Credit 4.55 2.04 2.46 9.54 10.09 7.59 6.03 6.54 BC Global Aggregate 1.50 0.87 0.62 2.73 6.03 6.70 5.46 6.49 BC Global Aggregate xUS 0.77 1.16 -0.38 -0.33 5.43 6.58 5.35 7.15 BC Muni 3.66 1.75 1.88 9.90 7.62 5.96 5.04 5.28 BC Agency 1.25 -0.04 1.29 4.34 4.06 5.53 4.75 4.82 BC Mortgages 1.66 0.57 1.08 4.97 5.40 6.67 5.71 5.40 BC ABS 1.97 0.66 1.30 4.90 6.71 4.74 4.33 — BOA-ML High Yield 7.02 5.05 1.88 6.62 16.01 8.07 8.07 9.76 CG T-Bill (90 Day) 0.03 0.01 0.02 0.04 0.10 0.87 1.90 1.77 CG Wld Gov Bond 0.41 -0.51 0.92 2.68 5.35 7.31 5.54 6.81 CG Wld Gov Bond xUS -0.02 -0.22 0.20 0.44 5.13 7.39 5.55 7.15

This report is prepared by UBS Financial Services Inc. and is for informational purposes only. The information contained herein has been obtained from Russell Mellon, Bureau of Labor Statistics and has not been independently verified by UBS Financial Services Inc. Index information relates to historical performance of market indexes and not the performance of actual strategies. The past performance of indexes is not a guarantee of future results, because each index reflects an unmanaged universe of securities and does not include any deduction for advisory fees or other expenses that would reduce actual returns. Individuals cannot invest directly in an index. This does not constitute a solicitation for the purchase or sale of any security.

3 Wealth Management Research 3 July 2012

Please view notes pages to help you better use this presentation with clients.

Investment Strategy Guide I know what you did last summer

Please Note:

The individual PowerPoint slides in the presentation should not be altered in any way as they contain research information. WMR is not responsible for content that has been modified prior to being presented.

Financial Advisors may, however, present different sections of the seminar by omitting slides that may not be relevant to the particular audience.

NEVER OMIT THE SLIDES MARKED „APPENDIX‟ AT THE END OF THIS PRESENTATION.

Please have any combination of these slides reviewed by your local compliance before use.

This report has been prepared by UBS Financial Services Inc. (“UBS FS”). mekalapa [printed: ____] [saved: ____] Presentation1 Key macro themes

Muddle-through economy Attractiv e Muddle- valuatio through n & Politics and policy risk economy resilient earnings Central bank support

Attractive valuation & resilient Central bank earnings support

Politics and policy risk

1 Muddle-through economy mekalapa [printed: ____] [saved: ____] Presentation1 Equity markets have once again hit a post-Q1 rut…. Volatile market conditions have become far too familiar at this time of year

S&P 500 Index, rebased 31 December of previous year = 100 115

110

105

100

80 Dec-31 Mar-31 Jun-30 Sep-30 Dec-31 2010 2011 2012

Source: Bloomberg, UBS WMR, as of 27 June 2012 2 Muddle-through economy mekalapa [printed: ____] [saved: ____] Presentation1 …driven by a decay in private payroll growth… Employment growth in the US has decelerated sharply

US private payrolls, monthly change in thousands 300

250

200

150

100

-50

-100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012

Source: Bloomberg, UBS WMR, as of 27 June 2012 3 Muddle-through economy mekalapa [printed: ____] [saved: ____] Presentation1 …and a slowdown in manufacturing activity ISM manufacturing and non-manufacturing indexes appear to have peaked

US ISM manufacturing PMI in comparison 62

50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012

Note: PMI = Purchasing Managers’ Index Source: Bloomberg, UBS WMR, as of 27 June 2012 4 Muddle-through economy mekalapa [printed: ____] [saved: ____] Presentation1 However, oil prices have fallen sharply off their peaks… WTI crude oil prices have recently dipped below the USD 80 level

Crude oil and US gasoline prices, in USD per barrel and gallon 180 4.5

160 4.0

140 3.5

120 3.0

100 2.5

80 2.0

60 1.5 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Brent (left) WTI (left) US gasoline price national average (right)

Source: Bloomberg, UBS WMR, as of 27 June 2012 5 Muddle-through economy mekalapa [printed: ____] [saved: ____] Presentation1 …US housing activity has shifted to a tailwind… Housing activity had been one of the biggest drags on the economy

US home builders confidence, home sales and building permits 160 Jan 2001 = 100 140 120 100 80 60 40 20 0 Jul-04 Jul-06 Jul-08 Jul-10 Jul-12

NAHB Housing Market Index US pending home sales index Building permits

Note: NAHB = National Association of Home Builders Source: Bloomberg, UBS WMR, as of 27 June 2012 6 Muddle-through economy mekalapa [printed: ____] [saved: ____] Presentation1 …and bank lending has been growing at a solid rate One-year-old recovery bodes well for sustainability of economic expansion

US commercial bank loans and leases, 3month-over-3month annualized in % 20

-5

-10

-15

-20 2006 2007 2008 2009 2010 2011 2012

US commercial bank loans and leases

Source: Bloomberg, UBS WMR, as of 27 June 2012 7 Politics and policy risk mekalapa [printed: ____] [saved: ____] Presentation1 Yet, a eurozone splintering still threatens global stability… The consequences of eurozone failure would be severe and widespread

Eurozone manufacturing Purchasing Managers' Index 65

30 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Eurozone Germany France Italy

Source: Thomson Datastream, UBS WMR as of 27 June 2012 8 Politics and policy risk mekalapa [printed: ____] [saved: ____] Presentation1 …as EU policymakers continue working towards a solution… Fiscal integration, direct bank recaps, and deposit insurance are on the table

ECB bond holdings under Securities Market Program, in EUR bn

250

200

150

100

0 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12

Source: Bloomberg, UBS WMR, as of 22 June 2012 9 Politics and policy risk mekalapa [printed: ____] [saved: ____] Presentation1 …and US elected officials try to steer clear of the fiscal cliff The total fiscal drag would total over USD 600 billion

Cumulative impact of “fiscal cliff” components, in % of UBS estimate of 2013 GDP

Source: Congressional Budget Office, UBS WMR as of 27 June 2012 10 Central bank support mekalapa [printed: ____] [saved: ____] Presentation1 Meanwhile, central bank reflation efforts are ongoing… The Fed extends Operation Twist and the ECB is ready to respond to stress

10-year government bond yields, in % 6

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 US Germany UK Switzerland

Source: Bloomberg, UBS WMR, as of 27 June 2012 11 Central bank support mekalapa [printed: ____] [saved: ____] Presentation1 …accompanied by easing in the emerging markets Moderation in inflation provides ample latitude to ease policy

New loans in CNY bn. and Chinese reserve requirement ratio, in %

2,000 25 1,800 1,600 20 1,400 1,200 15 1,000 800 10 600 400 5 200 0 0 2006 2007 2008 2009 2010 2011 2012 New loans (left) Reserve requirement ratio (right)

Source: Bloomberg, UBS WMR, as of 27 June 2012 12 Attractive valuation & resilient earnings mekalapa [printed: ____] [saved: ____] Presentation1 Investors should be rewarded for holding risk assets… Negative sentiment has driven risk premiums well above historical averages

12-month forward consensus earnings yield minus real bond yield 15%

Equities attractive 10% relative to bonds

Average 5%

0% Equities unattractive relative to bonds -5% 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

US Equity Risk Premium (forward earnings)

Source: Robert Shiller, Datastream, UBS WMR, as of 28 June 2012 13 Attractive valuation & resilient earnings mekalapa [printed: ____] [saved: ____] Presentation1 …and corporations should continue to grow earnings We still look for earnings to expand at a solid (if unspectacular) pace

S&P 500 earnings (in USD) and growth rates (in %)

120 6% 110 4% 15 108.3 100 % 102.2 16 97.9 38 90 % -4% 88.1 % 80 13 84.6 85.5 % 21 70 76.1 % - 0% 67.1 16 27% 60 61.9 62.0 % 56.4 6% 50 - 55.5 20% 47.9 40 45.2

30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E2013E

Note: 2012 and 2013 earnings represent WMR estimates, Source: FactSet, UBS WMR, as of 29 June 2012 14 Looking for a catalyst mekalapa [printed: ____] [saved: ____] Presentation1 Maintain a neutral tactical positioning

Moderate risk portfolio US equity sector allocation

Technology Equities 44% Fixed income 37% Consumer Staples US dollar fixed US equities 32% income 31% Energy Cons Discretionary Health Care Industrials Financials Utilities Non-US dev Non-US fixed Telecom equities 8% income 6% Materials Emerging market – – – – – – n + ++ +++ equities 4% Alternative underweight overweight Cash 2% investments 12% Commodities 5% Overweight Note: Left-hand side: Investment strategy recommendations that we believe will provide attractive opportunities over the next 9-12 months. The benchmark allocations are provided for illustrative purposes only by UBS for a hypothetical US investor with a moderate investor risk profile and Neutral total return objective. See “Sources of benchmark allocations and investor risk profiles” in the Appendix for a detailed explanation regarding the Underweight source of benchmark allocations and their suitability and the source of investor risk profiles. The current allocation is the sum of the benchmark allocation and the tactical deviation. See “Deviations from benchmark allocation” in the Appendix regarding the interpretation of the suggested tactical deviations from benchmark. See “Nontraditional Assets” and “Description of Certain Alternative Investment Strategies” in the Appendix regarding Alternative Investments. See “Emerging Market Investments in the Appendix regarding Emerging Markets. Right-hand side: Black arrows indicate most recent changes. See Appendix for explanation of strategy charts. Source: UBS WMR, as of 30 May 2012 15 mekalapa [printed: ____] [saved: ____] Presentation1 Key investment themes

Emerging market and US equities Moderate pro- cyclical sector Moderate pro-cyclical sector tilt tilt

Growth over value stocks Dividend growth Dividend growth over dividend Credit over yield over non-credit dividend yield Credit over non-credit

Growth Emerging over market and value US equities stocks

16 Emerging market and US equities We remain overweight EM and US equities… Growth, earnings, and policy latitude drive the call

Market performance in USD, end-2011 indexed to 100

120

115

110

105

100

95 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Emerging markets Developed markets

Source: Bloomberg, UBS WMR, as of 29 June 2012 17 Moderate pro-cyclical sector tilt …avoid the temptation to be overly defensive… Defensive sectors have already strongly outperformed cyclicals

Performance of defensive sectors / cyclical sectors

1.10

1.05

1.00

0.95

0.90

0.85

0.80 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12

Note: Defensive sectors are Consumer Staples, Healthcare, Telecom and Utilities. Cyclical sectors are Consumer Discretionary, Industrials, Materials and Tech. Source: Bloomberg, UBS WMR, as of 26 June 2012 18 Moderate pro-cyclical sector tilt …and pursue cheap cyclicals with solid growth prospects Stabilizing growth should lift valuations for cheap cyclicals

Current relative sector P/E ratio compared to its 10-year average relative P/E, in % 60% 50% 40% 30% Expensive 20% 10% 0% -10% Cheap

-20%

-30%

Disc.

Utilities

Telecom

Staples

Materials

Consumer

Industrials

Technology HealthCare

Cyclicals Defensiv es

Note: Relative to the S&P 500 Source: DataStream, UBS WMR, as of 26 June 2012 19 Growth over value stocks Meanwhile, growth remains underpriced… Growth stocks as a style have only been cheaper than now 10% of the time

Growth forward P/E divided by Value forward P/E

1.8x

1.7x

1.6x

1.5x

1.4x

1.3x

1.2x

1.1x

1.0x 1979 1983 1987 1991 1995 1999 2003 2007 2011 2015 Average 10th percentile

Note: Extreme readings during the Tech bubble are not shown in order to improve readability. Source: DataStream, UBS WMR, as of 29 June 2012 20 Growth over value stocks …with Technology valuations at a 16-year low Earnings growth and cash balances continue to be solid in Tech

Technology sector P/E elative to the S&P 500 P/E, in %

240%

220%

200%

180%

160%

140%

120%

100%

80% 1995 2000 2005 2010 2015

Source: Bloomberg, UBS WMR, as of 26 June 2012 21 Dividend growth over dividend yield Dividend growth beats dividend yield… Reduce portfolio volatility, replace lost income, and hedge against inflation

5-year annualized growth rate of sector dividends, in %

Technology Consumer Disc Consumer Staples Energy Healthcare Telecom Utilities Industrials Materials Financials

-30% -20% -10% 0% 10% 20%

Source: UBS WMR, as of 29 June 2012 22 Dividend growth over dividend yield …with Utilities exhibiting lofty valuations Any backup in interest rates a potential headwind for high-yielding defensives

Utilities P/E relative to the S&P 500 P/E 1.4

1.2

1.0

0.8

0.6

0.4

0.2 1999 2001 2003 2005 2007 2009 2011 2013

Source: DataStream, UBS WMR, as of 29 June 2012 23 Credit over non-credit As the value in government bonds continues to decline… Rates reached new historical lows due to disappointing data

10-year Treasury yield, le in % and UBS growth surprise index, right

2.4 190

2.2 183

2.0 176

1.8 169

1.6 162

1.4 155 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 10-year Treasury (left) UBS economic surprise index (right)

Source: Bloomberg, UBS WMR, as of 29 June 2012 24 Credit over non-credit …we see greatest value in HY bonds for additional yield… Investors are being overcompensated for the risk of default

US high yield credit spread and S&P speculative grade default rate, in %

2,000 12 1,800 1,600 10 1,400 8 1,200 1,000 6 800 4 600 400 2 200 0 0 1996 1999 2002 2005 2008 2011 US High Yield credit spread, in basis points US Speculative Grade default rate, in %

Source: S&P, BofAML, UBS WMR, as of 26 June 2012 25 Investment Strategy Guide in review

Key macro themes Attractiv e Muddle- Moderate pro- Muddle-through economy valuatio through n & cyclical sector economy Politics and policy risk resilient tilt Central bank support earnings Attractive valuation & resilient earnings Dividend Central growth bank Credit over over Key investment themes support non-credit dividend Emerging market and US equities yield

Moderate pro-cyclical sector tilt Growth Growth over value stocks Emerging Politics and over market and Dividend growth over dividend yield policy risk value US equities Credit over non-credit stocks

26 mekalapa [printed: ____] [saved: ____] Presentation1 Portfolio Analytics

The portfolio analytics shown for each risk profile's benchmark allocations are based on estimated forward-looking return and standard deviation assumptions (capital market assumptions), which are based on UBS proprietary research. The development process includes a review of a variety of factors, including the return, risk, correlations and historical performance of various asset classes, inflation and risk premium. These capital market assumptions do not assume any particular investment time horizon. The process assumes a situation where the supply and demand for investments is in balance, and in which expected returns of all asset classes are a reflection of their expected risk and correlations regardless of timeframe. Please note that these assumptions are not guarantees and are subject to change. UBS has changed its risk and return assumptions in the past and may do so in the future. Neither UBS nor your Financial Advisor is required to provide you with an updated analysis based upon changes to these or other underlying assumptions.

In order to create the analysis shown, the rates of return for each asset class are combined in the same proportion as the asset allocations illustrated (e.g., if the asset allocation indicates 40% equities, then 40% of the results shown for the allocation will be based upon the estimated hypothetical return and standard deviation assumptions shown). You should understand that the analysis shown and assumptions used are hypothetical estimates provided for you general information. The results are not guarantees and pertain to the asset allocation and/or asset class in general, not the performance of specific securities or investments. Your actual results may vary significantly from the results shown in this report, as can the performance of any individual security or investment.

27 mekalapa [printed: ____] [saved: ____] Presentation1 Appendix

Table labeled detailed asset allocations without non-traditional assets (NTAs) 1 See “Sources of Benchmark Allocations and Investor Risk Profiles” on next slide regarding the source of investor risk profiles. 2 See “Sources of Benchmark Allocations and Investor Risk Profiles” on next slide regarding the source of benchmark allocations and their suitability. 3 See “Deviations from Benchmark Allocation” on next slide regarding the interpretation of the suggested tactical deviations from benchmark. 4 The current allocation row is the sum of the benchmark allocation and the WMR tactical deviation rows.

Table labeled detailed asset allocations with non-traditional assets (NTAs) 1 See “Sources of Benchmark Allocations and Investor Risk Profiles” on next slide regarding the source of investor risk profiles. 2 See “Sources of Benchmark Allocations and Investor Risk Profiles” on next slide regarding the source of benchmark allocations and their suitability. 3 See “Deviations from Benchmark Allocation” on next slide regarding the interpretation of the suggested tactical deviations from benchmark. 4 The current allocation row is the sum of the benchmark allocation and the WMR tactical deviation rows. 5 UBS WMR considers that maintaining the benchmark allocation is appropriate for alternative investments. The recommended tactical deviation is therefore structurally set at 0. See “Sources of Benchmark Allocations and Investor Risk Profiles” regarding the types of alternative investments and their suitability.

Emerging Markets Investments Investors should be aware that Emerging Market assets are subject to, amongst others, potential risks linked to currency volatility, abrupt changes in the cost of capital and the economic growth outlook, as well as regulatory and socio-political risk, interest rate risk and higher credit risk. Assets can sometimes be very illiquid and liquidity conditions can abruptly worsen. WMR generally recommends only those securities it believes have been registered under Federal U.S. registration rules (Section 12 of the Securities Exchange Act of 1934) and individual State registration rules (commonly known as "Blue Sky" laws). Prospective investors should be aware that to the extent permitted under US law, WMR may from time to time recommend bonds that are not registered under US or State securities laws. These bonds may be issued in jurisdictions where the level of required disclosures to be made by issuers is not as frequent or complete as that required by US laws.

For more background on emerging markets generally, see the WMR Education Notes "Investing in Emerging Markets (Part 1): Equities", 30 July 2007, “Emerging Market Bonds: Understanding Emerging Market Bonds," 12 August 2009 and "Emerging Markets Bonds: Understanding Sovereign Risk," 17 December 2009.

Investors interested in holding bonds for a longer period are advised to select the bonds of those sovereigns with the highest credit ratings (in the investment grade band). Such an approach should decrease the risk that an investor could end up holding bonds on which the sovereign has defaulted. Sub-investment grade bonds are recommended only for clients with a higher risk tolerance and who seek to hold higher yielding bonds for shorter periods only.

Deviations from benchmark allocation The recommended tactical deviations from the benchmark are provided by WMR. They reflect our short- to medium-term assessment of market opportunities and risks in the respective asset classes and market segments. Positive / zero / negative tactical deviations correspond to an overweight / neutral / underweight stance for each respective asset class and market segment relative to their benchmark allocation. The current allocation is the sum of the benchmark allocation and the tactical deviation.

Note that the fixed income and equity and regional allocations on the WMR Investment Strategy slide are provided on an unhedged basis (i.e., it is assumed that investors carry the underlying currency risk of such investments). Thus, the deviations from the benchmark reflect our views of the underlying equity and bond markets in combination with our assessment of the associated currencies. The two bar charts, “Regional Equity Strategy” and “Regional Bond Strategy,” represent the relative attractiveness of countries (including the currency outlook) within a pure equity portfolio, respectively. In contrast, the detailed asset allocation tables integrate the country preferences within each asset class with the asset class preferences. As the tactical deviations at the asset class level are attributed to countries in proportion to the countries’ market capitalization, the relative ranking among regions may be altered in the combined view.

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Non-traditional assets include commodities and alternative investments (AI). AI, in turn, include hedge funds, private equity, real estate and managed futures. Interests of alternative investment funds are sold only to qualified investors, and only by means of offering documents that include information about the risks, performance and expenses of alternative investment funds, and which clients are urged to read carefully before subscribing and retain. An investment in an alternative investment fund is speculative and involves significant risks. Alternative investment funds are not mutual funds and are not subject to the same regulatory requirements as mutual funds. Alternative investment funds' performance may be volatile, and investors may lose all or a substantial amount of their investment in an alternative investment fund. Alternative investment funds may en-gage in leveraging and other speculative investment practices that may increase the risk of investment loss. Interests of alternative investment funds typically will be illiquid and subject to restrictions on transfer. Alternative investment funds may not be required to provide periodic pricing or valuation information to investors. Alternative investment fund investment programs generally involve complex tax strategies and there may be delays in distributing tax information to investors. Alternative investment funds are subject to high fees, including management fees and other fees and expenses, all of which will reduce profits. Alternative investment funds may fluctuate in value. An investment in an alternative investment fund is long-term, there is generally no secondary market for the interests of a fund, and none is expected to develop. Interests in alternative investment funds are not deposits or obligations of, or guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other governmental agency. Prospective investors should understand these risks and have the financial ability and willingness to accept them for an extended period of time before making an investment in an alternative investment fund and should consider an alternative investment fund as a supplement to an overall investment program.

In addition to the risks that apply to alternative investments generally, the following are additional risks related to an investment in these strategies: Hedge Fund Risk: There are risks specifically associated with investing in hedge funds, which may include risks associated with investing in short sales, options, small-cap stocks, "junk bonds,“ derivatives, distressed securities, non-U.S. securities and illiquid investments.

Hedge Fund of Funds: In addition to the risks associated with hedge funds generally, an investor should recognize that the overall performance of a fund of funds is dependent not only on the investment performance of the manager of the fund, but also on the performance of the underlying managers. The investor will bear the management fees and expenses of both the fund of funds and the underlying hedge funds or accounts in which the fund of funds invests, which could be significant.

Managed Futures: There are risks specifically associated with investing in managed futures programs. For example, not all managers focus on all strategies at all times, and managed futures strategies may have material directional elements.

Real Estate: There are risks specifically associated with investing in real estate products and real estate investment trusts. They involve risks associated with debt, adverse changes in general economic or local market conditions, changes in governmental, tax, real estate and zoning laws or regulations, risks associated with capital calls and, for some real estate products, the risks associated with the ability to qualify for favorable treatment under the federal tax laws.

Private Equity: There are risks specifically associated with investing in private equity. Capital calls can be made on short notice, and the failure to meet capital calls can result in significant adverse consequences including, but not limited to, a total loss of investment.

Foreign Exchange/Currency Risk: Investors in securities of issuers located outside of the United States should be aware that even for securities denominated in U.S. dollars, changes in the exchange rate between the U.S. dollar and the issuer’s "home" currency can have unexpected effects on the market value and liquidity of those securities. Those securities may also be affected by other risks (such as political, economic or regulatory changes) that may not be readily known to a U.S. investor.

Options: Options are not suitable for all investors. Please read the Options Clearing Corporation Publication titled "Characteristics and Risks of Standardized Options Trading" and consult your tax advisor prior to investing. The Publication can be obtained from your Financial Services Inc., Financial Advisor, or can be accessed under the Publications Section of the Option Clearing Corporation's website: www.theocc.com.

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Description of Certain Alternative Investment Strategies Equity Hedge: Investment managers who maintain positions both long and short in primarily equity and equity-derivative securities. A wide variety of investment processes can be employed to arrive at an investment decision, including both quantitative and fundamental techniques; strategies can be broadly diversified or narrowly focused on specific sectors and can range broadly in terms of levels of net exposure, leverage employed, holding period, concentrations of market capitalizations and valuation ranges of typical portfolios. Equity hedge managers would typically maintain at least 50% and may, in some cases, be substantially entirely invested in equities, both long and short.

Event Driven: Investment managers who maintain positions in companies currently or prospectively involved in corporate transactions of a wide variety including, but not limited to, mergers, restructurings, financial distress, tender offers, shareholder buybacks, debt exchanges, security issuance or other capital structure adjustments. Security types can range from most senior in the capital structure to most junior or subordinated, and frequently involve additional derivative securities. Event-driven exposure includes a combination of sensitivities to equity markets, credit markets and idiosyncratic, company- specific developments. Investment theses are typically predicated on fundamental characteristics (as opposed to quantitative), with the realization of the thesis predicated on a specific development exogenous to the existing capital structure.

Credit Arbitrage Strategies: Employ an investment process designed to isolate attractive opportunities in corporate fixed income securities. These include both senior and subordinated claims as well as bank debt and other outstanding obligations, structuring positions with little or no broad credit market exposure. These may also contain a limited exposure to government, sovereign, equity, convertible or other obligations, but the focus of the strategy is primarily on fixed corporate obligations and other securities held as component positions within these structures. Managers typically employ fundamental credit analysis to evaluate the likelihood of an improvement in the issuer's creditworthiness. In most cases, securities trade in liquid markets, and managers are only infrequently or indirectly involved with company management. Fixed income: corporate strategies differ from event driven; credit arbitrage in the former more typically involves more general market hedges, which may vary in the degree to which they limit fixed income market exposure, while the latter typically involves arbitrage positions with little or no net credit market exposure, but are predicated on specific, anticipated idiosyncratic developments.

Macro: Investment managers who trade a broad range of strategies in which the investment process is predicated on movements in underlying economic variables and the impact these have on equity, fixed income, hard currency and commodity markets. Managers employ a variety of techniques, both discretionary and systematic analysis, combinations of top-down and bottom-up theses, quantitative and fundamental approaches and long- and short-term holding periods. Although some strategies employ relative value techniques, macro strategies are distinct from relative value strategies in that the primary investment thesis is predicated on predicted or future movements in the underlying instruments, rather than realization of a valuation discrepancy between securities. In a similar way, while both macro and equity hedge managers may hold equity securities, the overriding investment thesis is predicated on the impact movements in underlying macroeconomic variables may have on security prices, as opposed to equity hedge, in which the fundamental characteristics of the company are the most significant and integral to investment thesis.

Distressed Restructuring Strategies: Employ an investment process focused on corporate fixed income instruments, primarily on corporate credit instruments of companies trading at significant discounts to their value at issuance, or obliged (par value) at maturity, as a result of either a formal bankruptcy proceeding or financial market perception of near-term proceedings. Managers are typically actively involved with the management of these companies, frequently involved on creditors' committees in negotiating the exchange of securities for alternative obligations, either swaps of debt, equity or hybrid securities. Managers employ fundamental credit processes focused on valuation and asset coverage of securities of distressed firms. In most cases, portfolio exposures are concentrated in instruments which are publicly traded, in some cases actively and in others under reduced liquidity but, in general, for which a reasonable public market exists. In contrast to special situations, distressed strategies primarily employ debt (greater than 60%) but also may maintain related equity exposure.

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Relative Value: Investment managers who maintain positions in which the investment thesis is predicated on realization of a valuation discrepancy in the relationship between multiple securities. Managers employ a variety of fundamental and quantitative techniques to establish investment theses, and security types range broadly across equity, fixed income, derivative or other security types. Fixed income strategies are typically quantitatively driven to measure the existing relationship between instruments and, in some cases, identify attractive positions in which the risk-adjusted spread between these instruments represents an attractive opportunity for the investment manager. Relative value position may be involved in corporate transactions also, but as opposed to event driven exposures, the investment thesis is predicated on realization of a pricing discrepancy between related securities, as opposed to the outcome of the corporate transaction.

Sources of benchmark allocations and investor risk profiles Benchmark allocations represent the longer-term allocation of assets that is deemed suitable for a particular investor. Except as described below, the benchmark allocations expressed in this presentation have been developed by UBS Investment Solutions (IS), a business sector within UBS Wealth Management Americas that develops research-based traditional investments (e.g., managed accounts and mutual fund options) and alternative strategies (e.g., hedge funds, private equity, and real estate) offered to UBS clients. The benchmark allocations are provided for illustrative purposes only and were designed by IS for hypothetical US investors with a total return objective under seven different Investor Risk Profiles ranging from very conservative to very aggressive. In general, benchmark allocations will differ among investors according to their individual circumstances, risk tolerance, return objectives and time horizon. Therefore, the benchmark allocations in this presentation may not be suitable for all investors or investment goals and should not be used as the sole basis of any investment decision. As always, please consult your UBS Financial Advisor to see how these weightings should be applied or modified according to your individual profile and investment goals.

The process by which IS has derived the benchmark allocations can be described as follows. First, an allocation is made to broad asset classes based on an investor’s risk tolerance and characteristics (such as preference for international investing). This is accomplished using optimization methods within a mean-variance framework. Based on a proprietary set of capital market assumptions, including expected returns, risk, and correlation of different asset classes, combinations of the broad asset classes are computed that provide the highest level of expected return for each level of expected risk. A qualitative judgmental overlay is then applied to the output of the optimization process to arrive at the benchmark allocation. The capital market assumptions used for the benchmark allocations are developed by UBS Global Asset Management, a subsidiary of UBS AG and an affiliate of UBS Financial Services Inc.

In addition to the benchmark allocations IS derived using the aforementioned process, WMR determined the benchmark allocation by country of Non-US Developed Equity and Non-US Fixed Income in proportion to each country’s market capitalization, and determined the benchmark allocation by Sector and Industry Group of US Equity in proportion to each sector’s market capitalization. WMR, in consultation with IS, also determined the benchmark allocation for US dollar taxable fixed income. It was derived from an existing moderate risk taxable fixed income allocation developed by IS, which includes fewer fixed income segments than the benchmark allocation presented here. The additional fixed income segments were taken by WMR from related segments. For example, TIPS were taken from Treasuries and Preferred Securities from Corporate Bonds. A level of overall risk similar to that of the original IS allocation was retained.

AI include hedge funds, private equity, real estate, and managed futures. The total benchmark allocation was determined by IS using the process described above. The Wealth Management Americas Investment Committee (WMA IC) derived the AI subsector benchmark allocations by adopting IS' determination as to the appropriate subsector benchmark allocations with AI for the following risk profiles: conservative, moderately conservative, moderate, moderate aggressive and aggressive. The WMA IC then developed subsector allocations for very conservative and very aggressive risk profiles by taking the IS subsector weightings for conservative and aggressive risk profile investors and applying them pro rata to the IS AI total benchmark allocations for very conservative and very aggressive, respectively. Allocations to AI as illustrated in this report may not be suitable for all investors. In particular, minimum net worth requirements may apply.

The background for the benchmark allocation attributed to commodities can be found in the WMR Education Note, “A pragmatic approach to commodities,” 2 May, 2007.

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Wealth Management Research is published by Wealth Management & Swiss Bank and Wealth Management Americas, Business Divisions of UBS AG (UBS) or an affiliate thereof. In certain countries UBS AG is referred to as UBS SA. This publication is for your information only and is not intended as an offer, or a solicitation of an offer, to buy or sell any investment or other specific product. The analysis contained herein does not constitute a personal recommendation or take into account the particular investment objectives, investment strategies, financial situation and needs of any specific recipient. It is based on numerous assumptions. Different assumptions could result in materially different results. We recommend that you obtain financial and/or tax advice as to the implications (including tax) of investing in the manner described or in any of the products mentioned herein. Certain services and products are subject to legal restrictions and cannot be offered worldwide on an unrestricted basis and/or may not be eligible for sale to all investors. All information and opinions expressed in this document were obtained from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to its accuracy or completeness (other than disclosures relating to UBS and its affiliates). All information and opinions as well as any prices indicated are currently only as of the date of this report, and are subject to change without notice. Opinions expressed herein may differ or be contrary to those expressed by other business areas or divisions of UBS as a result of using different assumptions and/or criteria. At any time UBS AG and other companies in the UBS group (or employees thereof) may have a long or short position, or deal as principal or agent, in relevant securities or provide advisory or other services to the issuer of relevant securities or to a company connected with an issuer. Some investments may not be readily realizable since the market in the securities is illiquid and therefore valuing the investment and identifying the risk to which you are exposed may be difficult to quantify. UBS relies on information barriers to control the flow of information contained in one or more areas within UBS, into other areas, units, divisions or affiliates of UBS. Futures and options trading is considered risky. Past performance of an investment is no guarantee for its future performance. Some investments may be subject to sudden and large falls in value and on realization you may receive back less than you invested or may be required to pay more. Changes in FX rates may have an adverse effect on the price, value or income of an investment. This document may not be reproduced or copies circulated without prior authority of UBS or a subsidiary of UBS. UBS expressly prohibits the distribution and transfer of this document to third parties for any reason. UBS will not be liable for any claims or lawsuits from any third parties arising from the use or distribution of this document. This report is for distribution only under such circumstances as may be permitted by applicable law.

Distributed to US persons by UBS Financial Services Inc., a subsidiary of UBS AG. UBS Securities LLC is a subsidiary of UBS AG and an affiliate of UBS Financial Services Inc. UBS Financial Services Inc. accepts responsibility for the content of a report prepared by a non-US affiliate when it distributes reports to US persons. All transactions by a US person in the securities mentioned in this report should be effected through a US-registered broker dealer affiliated with UBS, and not through a non-US affiliate. The contents of this report have not been and will not be approved by any securities or investment authority in the United States or elsewhere. Version as per October 2011.

32 Investment Performance

Period Ending June 30, 2012

Prepared For: Gwinnett County Employees Retirement System August 2, 2012

Prepared by: Allen Wright, Earle Dodd, Scott Olsen, Ray Vuicich

Gwinnett County Composite

The information contained in this report has been obtained from sources believed to be reliable, but its accuracy or completeness is not guaranteed. This report is not meant to supersede your custodial statements that should be read regularly. Any opinions expressed herein reflect our judgment at this date and are subject to change. Please report any discrepancies you may find to your UBS Institutional Consultant.

Rule 204-3 under the Investment Advisers Act of 1940 requires that we make an annual offer to clients to send to them, without charge, a written disclosure statement meeting the requirements of such rule. We will be glad to send you a copy of such statement to you upon your written request.

Please contact your UBS Institutional Consultant if you have any questions regarding this report, if your financial situation, individual needs or investment objectives have changed, or if you would like to impose or change any investment restrictions on this account. Please note that you are also required to inform your investment advisor, directly, of any changes in your financial condition, investment objectives or investment restrictions on your account. Annualized Performance Summary 1 Net Annualized Performance Summary 3 Executive Summary 5 Investment Earnings Report 6 3 Year Capital Market Line 7 5 Year Capital Market Line Chart 8 Capital Market Line Chart 9 Universe Comparisons 10 Benchmark Comparisons Used In This Report 11

Managed Account Performance

Rainier 12 Barrow Hanley 16 Fairpointe Capital 20 William Blair 24 Vaughan Nelson 28 Atlanta Capital 32 Invesco REIT 36 1607 Capital Partners 40 ING 44 Templeton Global Bond 48 Dreyfus International 52 Cash 56 Performance Report Disclosures 59 Gross of Fees Summary Statement Gwinnett County Employees Retirement System

Inception 06/30/2012 Latest %tile Year to %tile 1 %tile 3 %tile 5 %tile %tile Account Date Market Value QTR Ranking Date Ranking Year Ranking Year Ranking Year Ranking Inception Ranking Consolidated Portfolio* 12/31/2006 $721,450,797 -1.72% 50 5.92% 34 2.54% 22 13.23% 11 4.16% 3 4.75% 3 Policy Index -1.47% 39 5.75% 43 2.41% 29 12.98% 11 3.11% 9 3.72% 12 Dynamic Index -1.34% 30 5.73% 43 2.03% 45 11.89% 38 0.76% 80 Large Cap Growth Rainier 10/22/2007 $85,699,458 -5.06% 45 10.60% 35 2.70% 56 15.80% 53 -0.42% 69 Russell 1000 Growth -4.02% 27 10.08% 43 5.76% 18 17.50% 26 2.18% 36 Large Cap Value Barrow Hanley 01/03/2007 $86,439,416 -2.48% 30 8.33% 30 3.39% 32 15.78% 33 -0.83% 50 0.91% 43 Russell 1000 Value -2.20% 23 8.68% 23 3.01% 37 15.80% 33 -2.19% 77 -0.87% 82 Mid Cap Core Fairpointe Capital 03/30/2012 $17,119,817 -3.66% 27 -3.48% 27 Russell 2000 -3.47% 22 -3.47% 22 Mid Cap Growth William Blair 03/30/2012 $17,957,178 -4.89% 55 -4.65% 55 Russell 2000 -3.47% 22 -3.47% 22 Mid Cap Value Vaughan Nelson 03/30/2012 $17,471,969 -6.20% 84 -5.98% 84 Russell 2000 -3.47% 22 -3.47% 22 Small Cap Blend Atlanta Capital 01/31/2007 $54,580,207 -3.14% 16 5.21% 81 3.60% 4 20.73% 23 8.43% 1 8.83% 1 Russell 2000 -3.47% 22 8.53% 38 -2.08% 47 17.80% 69 0.54% 58 1.35% 64 REITS Invesco REIT 01/05/2007 $34,851,513 3.36% 86 14.01% 81 12.81% 90 30.99% 81 4.12% 45 2.44% 52 NAREIT Equity 4.00% 22 14.91% 36 12.48% 95 32.40% 81 2.60% 80 78 Foreign Developed Blend 1607 Capital Partners 06/30/2008 $93,335,117 -7.05% 53 5.49% 26 -11.05% 17 11.34% 4 -0.38% 6 MSCI ACWI ex US Net -7.61% 66 2.76% 76 -14.58% 58 6.96% 43 -4.11% 43 Fixed Income Taxable Intermediate ING 12/10/2007 $170,422,022 1.85% 32 2.76% 48 7.27% 31 8.13% 27 7.21% 17 Barclays Aggregate 2.06% 21 2.37% 62 7.47% 27 6.93% 50 6.40% 53 Ryan Labs 04/03/2012 $101,636,665 1.75% 35 Barclays Aggregate 2.32% 20

*Under $1 Billion Public Funds Universe The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE1 Gross of Fees Summary Statement Gwinnett County Employees Retirement System

Inception 06/30/2012 Latest %tile Year to %tile 1 %tile 3 %tile 5 %tile %tile Account Date Market Value QTR Ranking Date Ranking Year Ranking Year Ranking Year Ranking Inception Ranking Emerging Markets Templeton Global Bond 12/08/2011 $17,733,019 -0.99% 71 6.12% 89 5.56% 89 CG World Gov't 0.92% 40 0.41% 99 99 Dreyfus International 12/08/2011 $17,599,084 0.32% 50 2.98% 99 3.43% 99 CG World Gov't 0.92% 40 0.41% 99 99 Cash & Equivalents Cash 12/31/2006 $6,605,333 0.29% 0.67% 0.91% 0.44% 1.95% 2.24% Citigroup 3 Mo TBill 0.02% 0.03% 0.04% 0.10% 0.87% 1.25%

*Under $1 Billion Public Funds Universe The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE2 Net of Fees Summary Statement Gwinnett County Employees Retirement System

Inception 06/30/2012 Latest %tile Year to %tile 1 %tile 3 %tile 5 %tile %tile Account Date Market Value QTR Ranking Date Ranking Year Ranking Year Ranking Year Ranking Inception Ranking Consolidated Portfolio* 12/31/2006 $721,450,797 -1.75% 50 5.77% 43 2.21% 38 12.78% 11 3.72% 3 4.30% 3 Policy Index -1.47% 39 5.75% 43 2.41% 29 12.98% 11 3.11% 9 3.72% 12 Dynamic Index -1.34% 30 5.73% 43 2.03% 45 11.89% 38 0.76% 80 Large Cap Growth Rainier 10/22/2007 $85,699,458 -5.18% 45 10.31% 31 2.30% 53 15.27% 52 -0.86% 69 Russell 1000 Growth -4.02% 23 10.08% 36 5.76% 13 17.50% 18 2.18% 26 Large Cap Value Barrow Hanley 01/03/2007 $86,439,416 -2.57% 33 8.14% 26 3.01% 32 15.34% 34 -1.21% 48 0.52% 41 Russell 1000 Value -2.20% 25 8.68% 18 3.01% 32 15.80% 27 -2.19% 73 -0.87% 71 Mid Cap Core Fairpointe Capital 03/30/2012 $17,119,817 -3.82% 28 -3.63% 28 Russell 2000 -3.47% 23 -3.47% 23 Mid Cap Growth William Blair 03/30/2012 $17,957,178 -4.89% 42 -4.65% 42 Russell 2000 -3.47% 23 -3.47% 23 Mid Cap Value Vaughan Nelson 03/30/2012 $17,471,969 -6.38% 80 -6.17% 80 Russell 2000 -3.47% 23 -3.47% 23 Small Cap Blend Atlanta Capital 01/31/2007 $54,580,207 -3.24% 17 4.91% 67 2.92% 3 19.83% 17 7.61% 1 8.00% 1 Russell 2000 -3.47% 23 8.53% 28 -2.08% 34 17.80% 43 0.54% 44 1.35% 56 REITS Invesco REIT 01/05/2007 $34,851,513 3.18% 84 13.61% 69 12.13% 84 30.33% 76 3.27% 66 1.37% 27 NAREIT Equity 4.00% 15 14.91% 7 12.48% 76 32.40% 53 2.60% 83 81 Foreign Developed Blend 1607 Capital Partners 06/30/2008 $93,335,117 -7.01% 51 5.22% 34 -11.84% 24 10.50% 9 -1.13% 11 MSCI ACWI ex US Net -7.61% 66 2.76% 76 -14.58% 58 6.96% 43 -4.11% 43 Fixed Income Taxable Intermediate ING 12/10/2007 $170,422,022 1.79% 30 2.63% 53 7.01% 30 7.87% 32 6.98% 14 Barclays Aggregate 2.06% 15 2.37% 60 7.47% 21 6.93% 48 6.40% 41 Ryan Labs 04/03/2012 $101,636,665 2.18% 8 Barclays Aggregate 2.32% 16

*Under $1 Billion Public Funds Universe The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE3 Net of Fees Summary Statement Gwinnett County Employees Retirement System

Inception 06/30/2012 Latest %tile Year to %tile 1 %tile 3 %tile 5 %tile %tile Account Date Market Value QTR Ranking Date Ranking Year Ranking Year Ranking Year Ranking Inception Ranking Emerging Markets Templeton Global Bond 12/08/2011 $17,733,019 -0.99% 71 6.12% 89 5.56% 89 CG World Gov't 0.92% 40 0.41% 99 99 Dreyfus International 12/08/2011 $17,599,084 0.32% 50 2.98% 99 3.43% 99 CG World Gov't 0.92% 40 0.41% 99 99 Cash & Equivalents Cash 12/31/2006 $6,605,333 0.29% 0.67% 0.84% 0.42% 1.93% 2.22% Citigroup 3 Mo TBill 0.02% 0.03% 0.04% 0.10% 0.87% 1.25%

*Under $1 Billion Public Funds Universe The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE4 Executive Summary as of June 30, 2012 Gwinnett County Composite

Allocation - by Manager Risk vs Reward

Total Market Value More Return More Return As of June 30, 2012 Less Risk More Risk $ 721,450,797 4.00 Composite

3.00 Policy Index Index

2.00 Value Percent

ING 170,422,022 23.62 Annualized RateReturn of (%) Ryan Labs 101,636,665 14.09 1607 Capital Partners 93,335,117 12.94 Barrow Hanley 86,439,416 11.98 1.00 Rainier 85,699,458 11.88 3 MthMth T-Bill T-Bill Atlanta Capital 54,580,207 7.57 Less Return Less Return Invesco REIT 34,851,513 4.83 Less Risk More Risk William Blair 17,957,178 2.49 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 Standard Deviation (Risk) Templeton Global Bond 17,733,019 2.46 Dreyfus International 17,599,084 2.44 Vaughan Nelson 17,471,969 2.42 Return Std Dev Beta Alpha R-Squared Fairpointe Capital 17,119,817 2.37 Composite 4.16 13.27 0.88 1.21 97.98 Policy Index 3.11 14.95 1.00 0.00 100.00 Cash 6,605,333 0.91 3 Mth T-Bill 0.71 0.60 1.00 0.00 100.00

Latest Year One Three Five Since Investment Returns (%) Quarter to Date Year Years Years Inception Latest Quarter Year to Date Rainier -5.06 10.60 2.70 15.80 --- 0.01 Beginning Mkt Value 721,375,376 666,635,874 Barrow Hanley -2.48 8.33 3.39 15.78 -0.83 0.73 Fairpointe Capital -3.66 ------3.66 Net Contributions 38,375,931 40,696,078 William Blair -4.89 ------4.89 Interest And Dividend Income 3,911,662 7,162,661 Vaughan Nelson -6.20 ------6.20 Atlanta Capital -3.14 5.21 3.60 20.73 8.43 8.59 Net Capital Appreciation (42,153,780) 7,070,809 Invesco REIT 3.36 14.01 12.81 30.99 4.12 0.88 Fees 498,679 1,189,596 1607 Capital Partners -7.05 5.49 -11.05 11.34 --- -0.38 Ending Mkt Value 721,450,797 721,450,797 ING 1.85 2.76 7.27 8.13 --- 7.30 Ryan Labs ------0.74 Templeton Global Bond -0.99 6.12 ------6.12 Dreyfus International 0.32 2.98 ------2.98 Cash 0.29 0.67 0.91 0.44 1.95 2.24 Policy Index -1.47 5.75 2.41 12.98 3.11 3.72

Manager Beginning Interest Net Ending Total And Market New And Capital Market Investment Rate Of Asset Class Value Money Dividends Appreciation Value Earnings Return Rainier 94,214,765 0 152,292 -8,667,600 85,699,458 -8,515,307 -5.06 Barrow Hanley 92,461,936 0 852,774 -6,875,293 86,439,416 -6,022,520 -2.48 Fairpointe Capital 18,773,276 95,166 34,007 -1,782,632 17,119,817 -1,748,625 -3.66 William Blair 18,785,216 95,166 53,769 -976,973 17,957,178 -923,204 -4.89 Vaughan Nelson 18,779,626 95,166 41,568 -1,444,391 17,471,969 -1,402,823 -6.20 Atlanta Capital 60,011,041 0 151,172 -5,582,007 54,580,207 -5,430,834 -3.14 Invesco REIT 33,777,570 0 2 1,073,941 34,851,513 1,073,943 3.36 1607 Capital 100,149,344 0 762,843 -7,577,070 93,335,117 -6,814,227 -7.05 ING 246,050,126 -66,069,511 1,274,584 -10,833,178 170,422,022 -9,558,593 1.85 Ryan Labs N/A 100,481,973 340,540 814,152 101,636,665 1,154,692 N/A Templeton Global 17,910,445 0 216,908 -394,334 17,733,019 -177,426 -0.99 Dreyfus Intl 17,543,062 0 67,150 -11,128 17,599,084 56,022 0.32 Cash 2,622,416 3,969,103 13,814 0 6,605,333 13,814 0.29 Optimum/SSGA Mid Cap Index 296,553 -291,132 -49,761 44,340 N/A -5,421 N/A Gwinnett County 721,375,376 38,375,931 3,911,662 -42,212,173 721,450,797 -38,300,510 -1.72

Please be sure to read the DISCLOSURE section at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE6 Risk versus Reward Analysis June 30, 2009 Through June 30, 2012

15.00 More Return More Return 14.00 Less Risk More Risk

13.00 Composite Policy Index Index 12.00

11.00

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9.00

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6.00

5.00

4.00 Annualized Rate of Return (%) 3.00

2.00

1.00

0.00 3 MthMth T-Bill T-Bill -1.00 Less Return Less Return Less Risk More Risk -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 Standard Deviation (Risk)

Return Std Dev Beta Alpha R-Squared Composite 13.23 11.99 0.95 0.86 98.98 Policy Index 12.98 12.61 1.00 0.00 100.00 3 Mth T-Bill 0.10 0.03 1.00 0.00 100.00

More Return More Return Less Risk More Risk

4.00 Composite

3.00 Policy Index Index

2.00 Annualized Rate of Return (%)

1.00

3 MthMth T-Bill T-Bill Less Return Less Return Less Risk More Risk -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 Standard Deviation (Risk)

Return Std Dev Beta Alpha R-Squared Composite 4.16 13.27 0.88 1.21 97.98 Policy Index 3.11 14.95 1.00 0.00 100.00 3 Mth T-Bill 0.71 0.60 1.00 0.00 100.00

More Return More Return 5.00 Less Risk More Risk

Composite

4.00

Policy Index Index

3.00

Annualized Rate of Return (%) 2.00

1.00 3 MthMth T-Bill T-Bill Less Return Less Return Less Risk More Risk -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 Standard Deviation (Risk)

Return Std Dev Beta Alpha R-Squared Composite 4.75 12.66 0.88 1.21 97.94 Policy Index 3.72 14.24 1.00 0.00 100.00 3 Mth T-Bill 1.10 0.84 1.00 0.00 100.00

The comparative benchmark used in this analysis is the Policy Index. Please be sure to read the DISCLOSURE section at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE9 Composite PeerUniverseComparisonversusBNYMellonPublicFundsLessThan$1BillionManagers Please be suretoreadthe DISCLOSURESECTION attheend of thisreportwhich containsimportant disclosuresand disclaimerson The inception datemayor maynotbecoincident withthedate thattheUBSInstitutional Consulting Groupcommenced providing p Plc ne 14 957 324 91.81 .1937 12 N/A 3.72 3 N/A 9 80 4.75 3.11 0.76 3 11 38 4.16 12.98 11.89 11 29 45 13.23 2.41 2.03 22 43 43 2.54 5.75 5.73 34 39 30 5.92 -1.47 -1.34 50 Index Dynamic -1.72 Index Policy Gwinnett County Plc ne .14 43 22.02 2.04 .380 N/A 6.23 32 N/A 45 45 8.08 -24.20 -24.15 24 20 47 -21.51 23.40 19.45 23 22 36 22.23 14.38 13.65 11 45 54 15.18 1.71 1.17 29 Index Dynamic 2.02 Index Policy County Gwinnett Ma 17 .513 04 .12.70 0.30 2.17 1.81 2.78 3.53 5.02 -0.67 0.83 10.49 1.95 2.73 4.76 2.40 1.39 10.07 11.25 12.31 14.92 -8.61 -0.01 5.15 1.77 2.52 8.83 -3.09 4.62 -1.71 5.45 6.45 7.88 -5.88 -2.51 -1.68 Mean -1.26 Value Lowest 1.96 Third Quartile Median Value First Quartile Highest Value Ma .91.51.0-38 7.42 4.74 6.32 7.13 -23.86 8.38 12.17 -36.14 -26.70 19.10 -24.38 -20.73 -5.13 5.79 16.41 11.95 18.70 21.28 33.98 2.46 11.66 0.99 12.63 14.23 18.28 -6.89 -0.31 1.40 2.65 Mean Value Lowest 8.26 Third Quartile Median Value First Quartile Highest Value

-10 Rate of Return (%) eunRn eunRn eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rank Return Rank Return 10 15 -5

Rate of Return (%) 0 5 -40 -30 -20 -10 eunRn eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rank Return 10 20 30 Quarter 0 2011 Fiscal YTD 2010 Trailing Periods Annual Periods One Year 2009 Three Years Three theinformation providedto youinthisreport. erformance reportingservices toyou. 2008 Five Years 12/2006-6/2012 2007 PAGE10 Benchmark Comparisons Used In This Report

The primary index comparison for your portfolio and each of its asset classes is listed below.

COMPOSITE BENCHMARK 11/30/2011 - Present 35.00% Barclays Aggregate 15.00% MSCI ACWI ex US Net 12.50% Russell 1000 Growth 12.50% Russell 1000 Value 7.50% Russell 2000 7.50% Russell Midcap 5.00% Citigroup World Gov't Bond 5.00% NAREIT Equity 06/30/2005 - 11/30/2011 35.00% Barclays Aggregate 15.00% MSCI ACWI ex US Net 12.50% Russell 1000 Growth 12.50% Russell 1000 Value 7.50% Russell 2000 7.50% Russell Midcap 5.00% JP Morgan Emerging Mkt Bnd + Index 5.00% NAREIT Equity

Please be sure to read the DISCLOSURE SECTION at the beginning of this report which contains important disclosures and disclaimers on the information provided to you in this report.

PAGE11 Executive Summary as of June 30, 2012 Rainier

Top 10 Equity Positions Risk Vs Reward

Rainier More Return More Return 19.00 Less Risk More Risk Market Percent 18.00 17.00 Russell 1000 1000 Growth Growth Security Sector Value of Total 16.00 1 APPLE COMPUTER INC Information Technology 6,047,320 7.13 15.00 Total Portfolio 14.00 2 MICROSOFT CORP Information Technology 2,499,815 2.95 13.00 3 GOOGLE INC CL A Information Technology 2,485,600 2.93 12.00 11.00 4 SCHLUMBERGER Energy 2,447,107 2.88 10.00 5 PHILIP MORRIS INTL INC Consumer Staples 2,171,029 2.56 9.00 8.00 6 COSTCO WHSL CORP NEW Consumer Staples 2,037,750 2.40 7.00 7 EBAY INC Information Technology 1,944,223 2.29 6.00 5.00 Annualized RateReturn of (%) 8 QUALCOMM INC Information Technology 1,928,755 2.27 4.00 9 PRECISION CASTPARTS CORP Industrials 1,794,586 2.11 3.00 2.00 10 MASTERCARD INC CL A Information Technology 1,724,741 2.03 1.00 0.00 Barclays Treas Treas Bill Bill -1.00 Less Return Less Return Top Ten Total 25,080,926 29.55 -2.00 Less Risk More Risk -3.00 -2.00 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 25.00 Standard Deviation (Risk)

Return Std Dev Beta Alpha R-Squared Total Portfolio 15.80 21.06 1.08 -2.61 98.40 Russell 1000 Growth 17.50 19.38 1.00 0.00 100.00 Barclays Treas Bill 0.15 0.04 1.00 0.00 100.00 Asset Allocation Change in Financial Position

International Cash & EquivalentsEquity 4.3% 0.9% Latest Quarter Year to Date Beginning Mkt Value 94,214,765 80,868,846 Net Contributions -- -- Interest And Dividend Income 152,292 314,322 Net Capital Appreciation (8,667,600) 4,516,289 Fees 117,407 240,748 Equity 94.8% Ending Mkt Value 85,699,458 85,699,458

Distribution of Assets Time Weighted Rates of Return Market Value Market Value Latest Year To One Three Since 06/30/2012 Allocation 03/31/2012 Allocation Quarter Date Year Years Inception Rainier $85,699,458 100.00% $94,214,765 100.00% -5.06% 10.60% 2.70% 15.80% 0.01%

The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE12 Total PortfolioPeerUniverseComparisonversusLargeCapGrowthManagers Please be suretoreadthe DISCLOSURESECTION attheend of thisreportwhich containsimportant disclosuresand disclaimerson The inception datemayor maynotbecoincident withthedate thattheUBSInstitutional Consulting Groupcommenced providing p Riir-.97 82 03.46 4.881 -41.18 55 69 -38.44 32.04 34 30 37.21 18.22 45 73 16.71 -2.69 23 2.64 1000 Russell Growth Rainier Riir-.64 06 527 61.05 .169 0.01 36 53 1.44 15.80 26 56 17.50 2.70 18 35 5.76 10.60 43 45 10.08 -5.06 27 -4.02 Russell 1000 Growth Rainier Ma 01 64 49 -37.80 -48.70 -40.38 -37.78 -34.93 -27.93 34.97 20.54 30.33 35.03 38.80 50.89 16.44 10.33 13.61 16.11 19.00 24.97 -0.19 -8.15 -2.91 -0.09 2.58 Mean 7.08 Value Lowest Third Quartile Median Value First Quartile Highest Value Ma 50 .427 59 0.69 -3.52 -0.33 0.71 15.97 1.80 4.16 11.50 14.21 16.12 2.76 17.67 19.90 -6.33 0.87 3.32 9.44 5.12 9.83 4.40 7.85 9.68 -5.00 11.03 13.64 -8.00 -6.05 -5.25 -3.89 Mean Lowest Value -1.20 Third Quartile Median Value First Quartile Highest Value eunRn eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rank Return

-10 Rate of Return (%) 10 15 20 -5 eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rate of Return (%) 0 5 -50 -40 -30 -20 -10 10 20 30 40 50 Quarter 0 2011 Fiscal YTD Trailing Periods Annual Periods 2010 One Year 2009 theinformation providedto youinthisreport. erformance reportingservices toyou. Three Years Three 10/2007-6/2012 2008 PAGE13 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

44.0 42.0 0.0 40.0 -2.0 38.0 -4.0 36.0 -6.0 34.0 32.0 -8.0 30.0 -10.0 28.0 -12.0 26.0 -14.0 24.0 22.0 -16.0 20.0 -18.0 18.0 -20.0 Rate of Return (%) Rate of Return (%) 16.0 -22.0 14.0 -24.0 12.0 10.0 -26.0 8.0 -28.0 6.0 -30.0 4.0 -32.0 2.0 -34.0 0.0

Three Years Five Years Three Years Five Years Total Portfolio 41.90 N/A Total Portfolio -29.33 N/A Russell 1000 Growth 42.11 39.35 Russell 1000 Growth -26.42 -34.76 Difference -0.21 N/A Difference -2.91 N/A Ratio 1.00 N/A Ratio 1.11 N/A Up Periods 9 12 Down Periods 3 8

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE14 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 3.33 Equity 96.77 International Equity -0.15 Change Me 0.00 Asset Class Index Performance Barclays Treas Bill 0.03 Russell 1000 Growth -4.02 Total Portfolio and Benchmark Performance Dynamic Index -3.88 Policy Index -4.02 Portfolio Return -5.06 Value Added By Manager Market Timing 0.14 Security Selection -1.19 Total Value Added -1.04

Top 10 Equity Positions Risk vs Reward

More Return More Return Barrow Hanley Less Risk More Risk Market Percent 1.00 Security Sector Value of Total Barclays Treas Treas Bill Bill 1 UNITEDHEALTH GROUP INC Health Care 3,395,574 3.95 2 WELLS FARGO & CO NEW Financials 3,191,380 3.71 3 MICROSOFT CORP Information Technology 3,028,410 3.52 0.00 4 RAYTHEON COMPANY Industrials 2,801,205 3.26 5 MEDTRONIC INC Health Care 2,707,227 3.15 6 DIAGEO PLC NEW GB SPON ADR Consumer Staples 2,656,320 3.09 -1.00 Total Portfolio 7 BAXTER INTL INC Health Care 2,638,366 3.07 8 AMERICAN EXPRESS CO Financials 2,572,882 2.99 Annualized RateReturn of (%) 9 OCCIDENTAL PETE CORP Energy 2,561,778 2.98 10 STATE STREET CORP Financials 2,531,088 2.94 -2.00

Russell 1000 1000 Value Value Less Return Less Return Top Ten Total 28,084,230 32.65 Less Risk More Risk -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 Standard Deviation (Risk)

Return Std Dev Beta Alpha R-Squared Total Portfolio -0.83 22.08 0.93 1.05 95.09 Russell 1000 Value -2.19 23.24 1.00 0.00 100.00 Barclays Treas Bill 1.04 0.83 1.00 0.00 100.00 Asset Allocation Change in Financial Position Cash & Equivalents International0.5% Equity 11.7% Latest Quarter Year to Date Beginning Mkt Value 92,461,936 83,231,476 Net Contributions -- -- Interest And Dividend Income 852,774 1,563,969 Net Capital Appreciation (6,875,293) 1,643,972 Fees 79,673 153,568 Equity 87.8% Ending Mkt Value 86,439,416 86,439,416

Distribution of Assets Time Weighted Rates of Return Market Value Market Value Latest Year To One Three Since 06/30/2012 03/31/2012 Quarter Date Year Years Inception

Barrow Hanley $86,439,416 $92,461,936 -2.48% 8.33% 3.39% 15.78% 0.73%

The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE16 Total PortfolioPeerUniverseComparisonversusLargeCapValueManagers Please be suretoreadthe DISCLOSURESECTION attheend of thisreportwhich containsimportant disclosuresand disclaimerson The inception datemayor maynotbecoincident withthedate thattheUBSInstitutional Consulting Groupcommenced providing p Bro aly-.83 .33 .93 57 3-.35 .343 82 0.73 -1.16 50 77 -0.83 -2.19 33 33 15.78 15.80 32 37 3.39 3.01 30 23 8.33 8.68 30 23 -2.48 -2.20 Russell 1000 Value Barrow Hanley Bro aly44 91.69 32 9-46 46 71 -34.66 -36.85 59 81 23.22 19.69 93 35 11.16 15.51 19 56 4.43 0.39 1000 Russell Value Hanley Barrow Ma 35 .716 48 05 0.61 -3.05 -0.52 -0.70 0.44 1.69 5.10 -4.38 -1.91 14.86 -0.80 0.75 4.36 10.77 1.69 13.28 14.73 16.30 19.73 -6.95 -0.84 7.07 1.98 4.27 10.17 2.51 5.72 -3.58 7.05 8.58 10.64 -7.53 -4.85 -3.56 Mean -2.25 Lowest Value -0.16 Third Quartile Median Value First Quartile Highest Value Ma .21.92.4-34.49 -44.11 -37.18 -34.88 -32.05 25.64 -24.25 13.27 20.84 24.89 29.56 14.69 44.48 9.87 12.92 14.52 16.28 1.02 19.63 -8.22 -1.58 0.80 3.62 Mean 10.63 Value Lowest Third Quartile Median Value First Quartile Highest Value

Rate of Return (%) 10 15 20 eunRn eunRn eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rank Return Rank Return -5 0 5 eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return

Rate of Return (%) Quarter -50 -40 -30 -20 -10 10 20 30 40 50 0 2011 Fiscal YTD Trailing Periods Annual Periods 2010 One Year Three Years Three 2009 theinformation providedto youinthisreport. erformance reportingservices toyou. Five Years 1/2007-6/2012 2008 PAGE17 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

50.0 0.0 -2.0 45.0 -4.0

40.0 -6.0 -8.0 35.0 -10.0 -12.0 30.0 -14.0 25.0 -16.0 -18.0 20.0 Rate of Return (%) Rate of Return (%) -20.0 15.0 -22.0 -24.0 10.0 -26.0 5.0 -28.0 -30.0 0.0

Three Years Five Years Three Years Five Years Total Portfolio 46.98 50.70 Total Portfolio -28.16 -29.59 Russell 1000 Value 46.40 50.30 Russell 1000 Value -27.54 -31.18 Difference 0.58 0.41 Difference -0.61 1.59 Ratio 1.01 1.01 Ratio 1.02 0.95 Up Periods 8 9 Down Periods 4 11

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE18 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 1.18 Equity 98.75 International Equity 0.00 Change Me 0.00 Asset Class Index Performance Barclays Treas Bill 0.03 Russell 1000 Value -2.20 Total Portfolio and Benchmark Performance Dynamic Index -2.15 Policy Index -2.20 Portfolio Return -2.48 Value Added By Manager Market Timing 0.05 Security Selection -0.33 Total Value Added -0.29

Portfolio Performance Growth of a Dollar

0 101

100

99 -1 98

-2 96 95 Dollar Value Dollar 94 -3 Rate of Return (%) 93

-4 91 90 3/2012 6/2012

Inception Inception Total Portfolio -3.66 Total Portfolio Russell 2000 Russell 2000 -3.47 Asset Allocation Change in Financial Position

Latest Quarter Year to Date Beginning Mkt Value 18,773,276 -- Net Contributions 95,166 18,832,656 Interest And Dividend Income 34,007 -- Net Capital Appreciation (1,782,632) -- Fees 30,507 30,507 Ending Mkt Value 17,119,817 17,119,817

Rate of Return (%) -8 -7 -6 -5 -4 -3 -2 -1 0 eunRank Return Trailing Periods 3/2012-6/2012 theinformation providedto youinthisreport. erformance reportingservices toyou. PAGE21 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

0.0 55.0 -2.0 50.0 -4.0 -6.0 45.0 -8.0 40.0 -10.0 -12.0 35.0 -14.0 30.0 -16.0 -18.0 25.0 -20.0 Rate of Return (%) Rate of Return (%) 20.0 -22.0 -24.0 15.0 -26.0 10.0 -28.0 -30.0 5.0 -32.0 0.0 -34.0

Three Years Five Years Three Years Five Years Total Portfolio N/A N/A Total Portfolio N/A N/A Russell 2000 56.37 54.53 Russell 2000 -33.15 -34.59 Difference N/A N/A Difference N/A N/A Ratio N/A N/A Ratio N/A N/A Up Periods 8 10 Down Periods 4 10

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE22 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 3.47 Equity 95.97 International Equity 0.07 Change Me 0.00 Asset Class Index Performance Barclays Treas Bill 0.03 Russell 2000 -3.47 Total Portfolio and Benchmark Performance Dynamic Index -3.38 Policy Index -3.47 Portfolio Return -3.66 Value Added By Manager Market Timing 0.10 Security Selection -0.28 Total Value Added -0.19

Portfolio Performance Growth of a Dollar

0 102

101

-1 100

-2 98

-3 96 Dollar Value Dollar 95

Rate of Return (%) -4 94

-5 92

91 3/2012 6/2012 -6 Inception Inception Total Portfolio -4.89 Total Portfolio Russell 2000 Russell 2000 -3.47 Asset Allocation Change in Financial Position

Cash & Equivalents 4.2% Latest Quarter Year to Date Beginning Mkt Value 18,785,216 -- Net Contributions 95,166 18,832,685 Interest And Dividend Income 53,769 -- Net Capital Appreciation (976,973) -- Fees -- -- Ending Mkt Value 17,957,178 17,957,178 Equity 95.8%

Rate of Return (%) -8 -7 -6 -5 -4 -3 -2 -1 0 eunRank Return Trailing Periods 3/2012-6/2012 theinformation providedto youinthisreport. erformance reportingservices toyou. PAGE25 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

0.0 55.0 -2.0 50.0 -4.0 -6.0 45.0 -8.0 40.0 -10.0 -12.0 35.0 -14.0 30.0 -16.0 -18.0 25.0 -20.0 Rate of Return (%) Rate of Return (%) 20.0 -22.0 -24.0 15.0 -26.0 10.0 -28.0 -30.0 5.0 -32.0 0.0 -34.0

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE26 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 2.31 Equity 97.69 Asset Class Index Performance Barclays Treas Bill 0.03 Russell 2000 -3.47 Total Portfolio and Benchmark Performance Dynamic Index -3.47 Policy Index -3.47 Portfolio Return -4.89 Value Added By Manager Market Timing 0.00 Security Selection -1.42 Total Value Added -1.41

Portfolio Performance Growth of a Dollar

0 101

100 -1 99

-2 98

97 -3 96

-4 Value Dollar 95

94 Rate of Return (%) -5 93

-6 92

91 -7 3/2012 6/2012

Inception Inception Total Portfolio -6.20 Total Portfolio Russell 2000 Russell 2000 -3.47 Asset Allocation Change in Financial Position

International Equity 4.9% Cash & Equivalents 0.5% Latest Quarter Year to Date Beginning Mkt Value 18,779,626 -- Net Contributions 95,166 18,832,685 Interest And Dividend Income 41,568 -- Net Capital Appreciation (1,444,391) -- Fees 37,712 37,712 Ending Mkt Value 17,471,969 17,471,969 Equity 94.6%

Rate of Return (%) -8 -7 -6 -5 -4 -3 -2 -1 0 eunRank Return Trailing Periods 3/2012-6/2012 theinformation providedto youinthisreport. erformance reportingservices toyou. PAGE29 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

0.0 55.0 -2.0 50.0 -4.0 -6.0 45.0 -8.0 40.0 -10.0 -12.0 35.0 -14.0 30.0 -16.0 -18.0 25.0 -20.0 Rate of Return (%) Rate of Return (%) 20.0 -22.0 -24.0 15.0 -26.0 10.0 -28.0 -30.0 5.0 -32.0 0.0 -34.0

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE30 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 2.25 Equity 97.77 International Equity 0.01 Asset Class Index Performance Barclays Treas Bill 0.03 Russell 2000 -3.47 Total Portfolio and Benchmark Performance Dynamic Index -3.34 Policy Index -3.47 Portfolio Return -6.20 Value Added By Manager Market Timing 0.14 Security Selection -2.86 Total Value Added -2.72

Top 10 Equity Positions Risk vs Reward

Atlanta Capital More Return More Return 9.00 Less Risk More Risk Market Percent Total Portfolio Security Sector Value of Total 8.00 1 MORNINGSTAR INC Consumer Disc. 1,949,208 3.57 7.00 2 SALLY BEAUTY CO INC Consumer Disc. 1,711,453 3.13 3 HENRY JACK & ASSOC INC Information Technology 1,595,860 2.92 6.00

4 KIRBY CORPORATION Industrials 1,593,187 2.92 5.00 5 LKQ CORP Industrials 1,546,134 2.83 6 BIO RAD LABORATORIES INC CL A Health Care 1,517,152 2.78 4.00

7 DRIL-QUIP INC Energy 1,444,292 2.64 3.00 8 FAIR ISAAC CORP Information Technology 1,418,917 2.60 Annualized RateReturn of (%) 2.00 9 BLACKBAUD INC Information Technology 1,369,238 2.51 1.00 10 MANHATTAN ASSOC INC Information Technology 1,316,448 2.41 Barclays Treas Treas Bill Bill Russell 2000 2000 0.00 Less Return Less Return Top Ten Total 15,461,888 28.30 Less Risk More Risk -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 Standard Deviation (Risk)

Return Std Dev Beta Alpha R-Squared Total Portfolio 8.43 20.67 0.76 6.90 96.24 Russell 2000 0.54 26.55 1.00 0.00 100.00 Barclays Treas Bill 1.04 0.83 1.00 0.00 100.00 Asset Allocation Change in Financial Position

Latest Quarter Year to Date Beginning Mkt Value 60,011,041 55,248,200 Net Contributions -- -- Interest And Dividend Income 151,172 267,932 Net Capital Appreciation (5,582,007) (935,926) Fees -- 106,549 Ending Mkt Value 54,580,207 54,580,207

Distribution of Assets Time Weighted Rates of Return Market Value Market Value Latest Year To One Three Since 06/30/2012 03/31/2012 Quarter Date Year Years Inception

Atlanta Capital $54,580,207 $60,011,041 -3.14% 5.21% 3.60% 20.73% 8.59%

The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE32 Total PortfolioPeerUniverseComparisonversusSmallCapCoreMutualFunds Please be suretoreadthe DISCLOSURESECTION attheend of thisreportwhich containsimportant disclosuresand disclaimerson The inception datemayor maynotbecoincident withthedate thattheUBSInstitutional Consulting Groupcommenced providing p Rsel20 41 72.56 71 68 70 27.17 60 26.90 66 26.85 77 25.78 1 -4.18 10.18 2000 Russell Capital Atlanta 62 1 1.34 8.76 58 1 0.54 8.43 69 23 17.80 20.73 47 4 -2.08 3.60 38 81 8.53 5.21 22 16 -3.47 -3.14 2000 Russell Capital Atlanta Ma 46 .1-.11.411 2.33 -1.92 1.19 0.38 1.99 4.04 7.73 -3.37 18.74 -0.79 0.91 3.01 6.79 10.36 -2.11 17.17 18.84 20.64 23.89 -12.97 7.61 -4.33 -2.33 0.26 4.41 2.09 5.90 -4.63 7.70 9.08 11.47 -8.00 -5.85 Mean -4.75 -3.59 Value Lowest Third Quartile -2.08 Value Median Quartile First Value Highest Lws au 1.62.315.85 25.42 30.64 39.12 55.17 20.63 -1.4 24.74 27.73 30.04 35.92 -11.66 -4.06 Mean -0.91 1.87 Value Lowest 6.97 Third Quartile Value Median Quartile First Value Highest

Rate of Return (%) Rate of Return (%) -15 -10 -10 10 20 30 40 50 60 10 15 20 25 eunRn eunRn eunRank Return Rank Return Rank Return -5 eunRn eunRn eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rank Return Rank Return 0 0 5 Quarter 2011 4 Fiscal YTD 76 32.37 27.66 2010 Trailing Periods Annual Periods One Year 2009 Three Years Three theinformation providedto youinthisreport. erformance reportingservices toyou. Five Years 3/2007-6/2012 PAGE33 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

0.0 55.0 -2.0 50.0 -4.0 -6.0 45.0 -8.0 40.0 -10.0 -12.0 35.0 -14.0 30.0 -16.0 -18.0 25.0 -20.0 Rate of Return (%) Rate of Return (%) 20.0 -22.0 -24.0 15.0 -26.0 10.0 -28.0 -30.0 5.0 -32.0 0.0 -34.0

Three Years Five Years Three Years Five Years Total Portfolio 50.60 46.99 Total Portfolio -22.41 -20.02 Russell 2000 56.37 54.53 Russell 2000 -33.15 -34.59 Difference -5.78 -7.53 Difference 10.74 14.56 Ratio 0.90 0.86 Ratio 0.68 0.58 Up Periods 8 10 Down Periods 4 10

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE34 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 5.02 Equity 95.48 Change Me 0.00 Asset Class Index Performance Barclays Treas Bill 0.03 Russell 2000 -3.47 Total Portfolio and Benchmark Performance Dynamic Index -3.29 Policy Index -3.47 Portfolio Return -3.14 Value Added By Manager Market Timing 0.19 Security Selection 0.14 Total Value Added 0.33

Portfolio Performance Risk vs Reward

More Return More Return Less Risk More Risk

30 4.00 Total Portfolio

3.00 20

NAREIT Equity Equity 15 2.00 Annualized Rate of Return (%) 10 Rate of Return (%) Rate of

1.00 5 Barclays Treas Treas Bill Bill Less Return Less Return Less Risk More Risk -4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 40.00 42.00 0 Standard Deviation (Risk)

Quarter One Year Three Years Five Years Inception Return Std Dev Beta Alpha R-Squared Total Portfolio 4.12 32.15 0.93 1.07 99.54 Nareit Equity 2.60 34.53 1.00 0.00 100.00 Total Portfolio NAREIT Equity Barclays Treas Bill 1.04 0.83 1.00 0.00 100.00 Asset Allocation Change in Financial Position

Latest Quarter Year to Date Beginning Mkt Value 33,777,570 30,676,028 Net Contributions -- -- Interest And Dividend Income 2 2 Net Capital Appreciation 1,132,334 4,290,109 Fees 58,393 114,626 Ending Mkt Value 34,851,513 34,851,513 Real Estate 100.0%

The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE36 Total PortfolioPeerUniverseComparisonversusREIT/RealEstateManagers Please be suretoreadthe DISCLOSURESECTION attheend of thisreportwhich containsimportant disclosuresand disclaimerson The inception datemayor maynotbecoincident withthedate thattheUBSInstitutional Consulting Groupcommenced providing p Ma .91.81.63.539 1.03 -1.95 0.37 3.92 1.05 2.16 4.28 -0.97 3.35 32.25 3.97 5.35 7.02 11.81 32.64 14.16 33.36 34.09 35.13 12.47 13.62 14.38 14.19 14.59 15.34 10.43 14.02 3.69 14.74 15.04 15.66 3.13 3.38 3.66 Mean 3.93 Lowest Value 4.46 Third Quartile Median Value First Quartile Highest Value IvsoRI .68 40 11.19 09 141 508 52 78 -0.25 0.88 80 45 2.60 4.12 81 81 32.40 30.99 95 90 12.48 12.81 36 81 14.91 14.01 22 86 4.00 3.36 NAREIT Equity Invesco REIT Ma .22.52.6-34.84 -45.15 -38.95 -35.20 -31.45 28.76 -12.23 -28.83 26.77 31.14 34.17 27.95 46.88 15.32 26.49 29.02 30.18 9.72 35.09 -0.75 8.99 10.24 11.61 Mean 15.74 Value Lowest Third Quartile Median Value First Quartile Highest Value NRI qiy82 82.46 80 8-77 66 31 -37.73 -33.61 68 51 28.01 30.76 62 83 27.94 24.40 78 59 8.27 9.52 Equity NAREIT REIT Invesco

Rate of Return (%) eunRn eunRn eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rank Return Rank Return 10 15 20 25 30 35 0 5 eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return

Rate of Return (%) Quarter -50 -40 -30 -20 -10 10 20 30 40 50 0 2011 Fiscal YTD Trailing Periods Annual Periods 2010 One Year Three Years Three 2009 theinformation providedto youinthisreport. erformance reportingservices toyou. Five Years 1/2007-6/2012 2008 PAGE37 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

0.0 50.0 -5.0 45.0 -10.0 40.0 -15.0 35.0 -20.0

30.0 -25.0

25.0 -30.0 Rate of Return (%) Rate of Return (%) 20.0 -35.0

15.0 -40.0

10.0 -45.0 -50.0 5.0 -55.0 0.0

Three Years Five Years Three Years Five Years Total Portfolio 50.14 47.47 Total Portfolio -18.62 -53.78 NAREIT Equity 52.00 48.92 NAREIT Equity -18.53 -56.99 Difference -1.87 -1.45 Difference -0.10 3.21 Ratio 0.96 0.97 Ratio 1.01 0.94 Up Periods 10 14 Down Periods 2 6

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE38 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 0.04 Real Estate 99.96 Change Me 0.00 Asset Class Index Performance Barclays Treas Bill 0.03 NAREIT Equity 4.00 Total Portfolio and Benchmark Performance Dynamic Index 0.03 Policy Index 4.00 Portfolio Return 3.36 Value Added By Manager Market Timing -3.97 Security Selection 3.33 Total Value Added -0.65

Portfolio Performance Risk vs Reward

More Return More Return 12 Less Risk More Risk

10 1.00 Barclays Treas Treas Bill Bill 8

6 0.00 4 2 -1.00 0 -2 -2.00 -4

Annualized Rate of Return (%) -3.00 -6 Rate of Return (%) Rate of -8 -4.00 -10 -12 MSCI ACWI ex US Net -5.00 Less Return Less Return -14 Less Risk More Risk -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 Standard Deviation (Risk) Quarter One Year Three Years Inception

Return Std Dev Beta Alpha R-Squared Total Portfolio MSCI ACWI ex US Net Barclays Treas Bill 1.04 0.83 1.00 0.00 100.00 Asset Allocation Change in Financial Position Cash & Equivalents 3.6% Latest Quarter Year to Date Beginning Mkt Value 100,149,344 88,576,725 Net Contributions -- -- Interest And Dividend Income 762,843 929,689 Net Capital Appreciation (7,577,070) 3,828,703 Fees 174,987 363,071 Ending Mkt Value 93,335,117 93,335,117 International Equity 96.4%

The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE40 Total PortfolioPeerUniverseComparisonversusInternationalEquityManagers Please be suretoreadthe DISCLOSURESECTION attheend of thisreportwhich containsimportant disclosuresand disclaimerson The inception datemayor maynotbecoincident withthedate thattheUBSInstitutional Consulting Groupcommenced providing p 10 aia 70 354 6-10 71.44-.86 43 -0.38 -4.11 4 43 11.34 6.96 17 58 -11.05 26 -14.58 76 5.49 2.76 53 66 -7.05 -7.61 MSCI ACWI ex US Net 1607 Capital 10 aia 1.22 08 68 10 15 46.88 41.47 4 43 20.87 11.15 24 50 -11.72 -13.71 Net US ex ACWI MSCI 1607Capital Ma 71 .7-39 .6-4.21 -9.25 -5.73 -4.56 -2.59 6.96 0.85 1.74 5.44 6.66 8.83 -13.98 12.61 -21.14 -15.84 -13.95 4.17 -11.88 -6.43 0.00 2.83 4.24 5.61 -7.19 8.61 -10.57 -8.08 -6.98 -6.24 Mean Lowest Value -4.27 Third Quartile Median Value First Quartile Highest Value Ma 1.81.134.47 20.64 28.06 32.88 38.90 80.73 11.51 3.89 8.04 10.55 14.20 22.41 -13.88 -22.43 -15.59 -13.69 -11.86 -7.63 Mean Lowest Value Quartile Third Value Median Quartile First Value Highest

Rate of Return (%) eunRn eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rank Return -20 -15 -10 10 15 -5 0 5 Quarter eunRn eunRn eunRank Return Rank Return Rank Return Rate of Return (%) 50 0 2011 Fiscal YTD Trailing Periods Annual Periods One Year 2010 theinformation providedto youinthisreport. erformance reportingservices toyou. Three Years Three 6/2008-6/2012 2009 PAGE41 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

2.0 40.0 0.0 38.0 -2.0 36.0 -4.0 34.0 -6.0 32.0 -8.0 30.0 -10.0 28.0 -12.0 26.0 -14.0 24.0 -16.0 22.0 -18.0 20.0 -20.0 18.0 -22.0 16.0 -24.0 Rate of Return (%) Rate of Return (%) 14.0 -26.0 12.0 -28.0 10.0 -30.0 8.0 -32.0 6.0 -34.0 4.0 -36.0 2.0 -38.0 0.0 -40.0

Three Years Five Years Three Years Five Years Total Portfolio 36.33 N/A Total Portfolio -31.28 N/A MSCI ACWI ex US Net 32.63 39.94 MSCI ACWI ex US Net -35.17 -40.30 Difference 3.71 N/A Difference 3.88 N/A Ratio 1.11 N/A Ratio 0.89 N/A Up Periods 9 11 Down Periods 3 9

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE42 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 3.76 Equity 0.00 International Equity 96.24 Change Me 0.00 Asset Class Index Performance Barclays Treas Bill 0.03 MSCI ACWI ex US Net -7.61 Total Portfolio and Benchmark Performance Dynamic Index -7.32 Policy Index -7.61 Portfolio Return -7.05 Value Added By Manager Market Timing 0.29 Security Selection 0.27 Total Value Added 0.56

Top 10 Fixed Income Positions Risk vs Reward

9.00 More Return More Return Ing Less Risk More Risk Market Percent 8.00 Total Portfolio

Security Sector Value of Total 7.00 1 U S TREASURY NOTE US Treasury Notes 14,158,854 8.42 Barclays Aggregate Aggregate 6.00 2 UNITED STATES TREASURY NOTES US Treasury Notes 12,846,009 7.64 3 U S TREASURY NOTE US Treasury Notes 4,718,048 2.81 5.00 4 FREDDIE MAC NTS Federal Agency Securities 3,715,025 2.21 4.00 5 UNITED STATES T US Treasury Bonds 3,511,102 2.09 6 UNITED STATES TREAS NTDTD US Treasury Notes 3,467,660 2.06 3.00 Annualized RateReturn of (%) 7 U S TREASURY NOTE US Treasury Notes 3,310,667 1.97 2.00 8 U S TREASURY NOTE US Treasury Notes 3,137,199 1.87 1.00 9 NGN 2010-C1 A2 COLLATERALIZED MORTGAGE OBLIGA 2,708,275 1.61

10 GOVT NATL MTG ASSN II PASS US Treasury Bills 2,411,214 1.43 0.00 Barclays Treas Treas Bill Bill Less Return Less Return -1.00 Less Risk More Risk Top Ten Total 53,984,053 32.11 0.00 1.00 2.00 3.00 4.00 Standard Deviation (Risk)

Return Std Dev Beta Alpha R-Squared Total Portfolio 8.13 3.41 1.01 1.07 90.03 Barclays Aggregate 6.93 3.20 1.00 0.00 100.00 Barclays Treas Bill 0.15 0.04 1.00 0.00 100.00 Asset Allocation Change in Financial Position

Latest Quarter Year to Date Beginning Mkt Value 246,050,126 264,529,888 Net Contributions (66,069,511) (88,069,511) Interest And Dividend Income 1,274,584 2,997,730 Net Capital Appreciation (10,833,178) (9,036,086) Fees -- 142,815 ING 100.0% Ending Mkt Value 170,422,022 170,422,022

Distribution Of Assets Time Weighted Rates Of Return Market Value Market Value Latest Year To One Three Since 06/30/2012 03/31/2012 Quarter Date Year Years Inception ING $170,422,022 $246,050,126 1.85% 2.76% 7.27% 8.13% 7.30%

The inception date may or may not be coincident with the date that the UBS Institutional Consulting Group commenced providing performance reporting services to you. Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE44 Total PortfolioPeerUniverseComparisonversusIntermediateBondManagers Please be suretoreadthe DISCLOSURESECTION attheend of thisreportwhich containsimportant disclosuresand disclaimerson The inception datemayor maynotbecoincident withthedate thattheUBSInstitutional Consulting Groupcommenced providing p Brly grgt .42 .44 .37 .431 5.24 78 5.93 47 6.54 22 7.84 Barclays Aggregate ING 7.40327.88238.84465.9824 IG18 227 872 181 773 17 7.30 53 27 6.21 8.13 50 31 6.93 7.27 27 48 7.47 2.76 62 32 2.37 1.85 21 2.06 Barclays Aggregate ING Ma .466 .92.46 -16.67 0.24 4.15 5.86 9.99 9.44 2.67 6.21 8.39 11.86 6.63 32.39 2.60 5.42 6.47 7.82 11.72 6.44 2.70 5.42 6.39 7.73 Mean 9.93 Lowest Value Third Quartile Median Value First Quartile Highest Value Ma .129 .872 6.29 4.19 5.57 6.31 7.01 7.20 8.68 4.16 5.91 6.93 8.31 6.48 11.61 3.19 5.57 6.35 7.73 2.90 9.73 1.29 2.07 2.72 3.48 1.61 5.37 0.60 1.31 1.54 1.98 Mean 2.71 Lowest Value Third Quartile Median Value First Quartile Highest Value

eunRn eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return Rank Return Rate of Return (%) 10 12 eunRn eunRn eunRn eunRank Return Rank Return Rank Return Rank Return

Rate of Return (%) 0 2 4 6 8 -20 -15 -10 10 15 20 25 30 35 -5 Quarter 0 5 2011 Fiscal YTD Trailing Periods Annual Periods 2010 One Year 2009 theinformation providedto youinthisreport. erformance reportingservices toyou. Three Years Three 12/2007-6/2012 2008 PAGE45 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

0.0 9.0

8.0

7.0

6.0 -1.0

5.0

4.0 Rate of Return (%) Rate of Return(%) 3.0 -2.0 2.0

1.0

0.0

Three Years Five Years Three Years Five Years Total Portfolio 9.41 N/A Total Portfolio -1.27 N/A Barclays Aggregate 8.10 8.76 Barclays Aggregate -1.30 -2.77 Difference 1.31 N/A Difference 0.03 N/A Ratio 1.16 N/A Ratio 0.98 N/A Up Periods 11 17 Down Periods 1 3

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE46 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents -8.15 US Treasury Bills 0.00 Fixed Income 109.75 Equity 0.00 Change Me 0.16 Asset Class Index Performance Barclays Treas Bill 0.03 N/A Barclays Aggregate 2.06 Total Portfolio and Benchmark Performance Dynamic Index N/A Policy Index 2.06 Portfolio Return 1.85 Value Added By Manager Market Timing N/A Security Selection N/A Total Value Added -0.21

Portfolio Performance Risk vs Reward

8.00 More Return More Return 7 Less Risk More Risk

CG World Gov't 6 7.00

5 6.00

4 5.00 3 4.00 2 3.00 1 Annualized Rate of Return (%) Rate of Return (%) Rate of 2.00 0

1.00 -1 Barclays Treas Treas Bill Bill Less Return Less Return Less Risk More Risk -2 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Standard Deviation (Risk) Quarter Inception

Return Std Dev Beta Alpha R-Squared TOTAL FUND CG World Gov't Barclays Treas Bill 1.04 0.83 1.00 0.00 100.00 Asset Allocation Change in Financial Position

Latest Quarter Year to Date Beginning Mkt Value 17,910,445 2,486,658 Net Contributions -- 15,000,000 Interest And Dividend Income 216,908 361,473 Net Capital Appreciation (394,334) (115,112) Fees -- -- Ending Mkt Value 17,733,019 17,733,019 Fixed Income 100.0%

Rate of Return (%) 10 -2 0 2 4 6 8 Quarter Trailing Periods Annual Periods theinformation providedto youinthisreport. erformance reportingservices toyou. 12/2011-6/2012 PAGE49 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

20.0 0.0 19.0 18.0 17.0 -1.0 16.0 15.0 -2.0 14.0 13.0 -3.0 12.0 11.0 -4.0 10.0 9.0 8.0 -5.0 Rate of Return (%) Rate of Return (%) 7.0 6.0 -6.0 5.0 4.0 -7.0 3.0 2.0 1.0 -8.0 0.0

Three Years Five Years Three Years Five Years TOTAL FUND N/A N/A TOTAL FUND N/A N/A CG World Gov't 12.96 19.41 CG World Gov't -4.44 -8.58 Difference N/A N/A Difference N/A N/A Ratio N/A N/A Ratio N/A N/A Up Periods 7 12 Down Periods 5 8

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE50 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 0.00 Fixed Income 100.00 Change Me 0.00 Asset Class Index Performance Barclays Treas Bill 0.03 CG World Gov't 0.92 Total Portfolio and Benchmark Performance Dynamic Index N/A Policy Index 0.92 Portfolio Return -0.99 Value Added By Manager Market Timing N/A Security Selection N/A Total Value Added -1.91

Portfolio Performance Risk vs Reward

8.00 More Return More Return 4 Less Risk More Risk

CG World Gov't 7.00

3 6.00

5.00

4.00 2

3.00 Annualized Rate of Return (%) Rate of Return (%) Rate of 2.00 1

1.00 Barclays Treas Treas Bill Bill Less Return Less Return Less Risk More Risk 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 0 Standard Deviation (Risk) Quarter Inception

Return Std Dev Beta Alpha R-Squared TOTAL FUND CG World Gov't Barclays Treas Bill 1.04 0.83 1.00 0.00 100.00 Asset Allocation Change in Financial Position

Latest Quarter Year to Date Beginning Mkt Value 17,543,062 2,510,984 Net Contributions -- 15,000,000 Interest And Dividend Income 67,150 67,150 Net Capital Appreciation (11,128) 20,950 Fees -- -- Ending Mkt Value 17,599,084 17,599,084 Fixed Income 100.0%

Rate of Return (%) 10 -2 0 2 4 6 8 Quarter Trailing Periods Annual Periods theinformation providedto youinthisreport. erformance reportingservices toyou. 12/2011-6/2012 PAGE53 Performance in Rising and Declining Markets June 30, 2007 Through June 30, 2012

Up Market Performance Down Market Performance

20.0 0.0 19.0 18.0 17.0 -1.0 16.0 15.0 -2.0 14.0 13.0 -3.0 12.0 11.0 -4.0 10.0 9.0 8.0 -5.0 Rate of Return (%) Rate of Return (%) 7.0 6.0 -6.0 5.0 4.0 -7.0 3.0 2.0 1.0 -8.0 0.0

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE54 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 0.00 Fixed Income 100.00 Change Me 0.00 Asset Class Index Performance Barclays Treas Bill 0.03 CG World Gov't 0.92 Total Portfolio and Benchmark Performance Dynamic Index N/A Policy Index 0.92 Portfolio Return 0.32 Value Added By Manager Market Timing N/A Security Selection N/A Total Value Added -0.60

Portfolio Performance Growth of a Dollar

114

3 112

110

108

2 106

Dollar Value 104

Rate of Return (%) 102 1 100

98 6/2007 6/2008 6/2009 6/2010 6/2011 6/2012

0 Quarter Calendar YTD 1 Year 3 Years 5 Years Inception Quarter Calendar YTD 1 Year 3 Years 5 Years Inception Total Portfolio 0.29 0.67 0.91 0.44 1.95 2.24 Total Portfolio Citigroup 3 Mo TBill Citigroup 3 Mo TBill0.020.030.040.100.871.25 Asset Allocation Change in Financial Position

Latest Quarter Year to Date Beginning Mkt Value 2,622,416 8,287,613 Net Contributions 3,969,103 (1,710,750) Interest And Dividend Income 13,814 28,470 Net Capital Appreciation -- -- Fees -- -- Ending Mkt Value 6,605,333 6,605,333 Cash & Equivalents 100.0%

Up Market Performance Down Market Performance

2.0

1.0 0.0 Rate of Return (%) Rate of Return (%)

0.0

Three Years Five Years Three Years Five Years Total Portfolio 0.44 1.95 Total Portfolio N/A N/A Citigroup 3 Mo TBill 0.10 0.87 Citigroup 3 Mo TBill N/A N/A Difference 0.34 1.07 Difference N/A N/A Ratio 4.36 2.23 Ratio N/A N/A Up Periods 12 20 Down Periods 0 0

Please be sure to read the DISCLOSURE SECTION at the end of this report which contains important disclosures and disclaimers on the information provided to you in this report. PAGE57 Market Timing And Security Selection March 31, 2012 Through June 30, 2012

Fund's Average Investment Exposure and Market Index Returns

Quarter Asset Class Cash & Equivalents 100.53 Asset Class Index Performance Barclays Treas Bill 0.03 Total Portfolio and Benchmark Performance Dynamic Index 0.03 Policy Index 0.02 Portfolio Return 0.29 Value Added By Manager Market Timing 0.01 Security Selection 0.26 Total Value Added 0.27

General Information This performance report represents information about your accounts in the UBS Institutional Consulting Group at UBS Financial Services.

This report is intended as a general guide to review the performance of your holdings across a variety of accounts including those accounts held at different financial institutions. This report is for your use only. Information contained in the report should not be used for tax reporting or preparation purposes or used as the basis of an investment or liquidation decision.

Please contact your Institutional Consultant if you have any questions regarding this performance report, if your financial situation, needs or investment objectives on any account have changed, or if you would like to impose or change any investment restrictions on any account.

No Tax or Legal Advice Neither UBS Financial Services nor any of its employees provide tax or legal advice. You must consult with your legal or tax advisors regarding your personal circumstances.

Assets Held at Other Qualified Custodians Depending on the accounts covered by your Institutional Consulting Services Agreement with us, this report may cover a number of your existing accounts, each with a potentially different investment objective and risk parameters. These accounts may be held at a variety of financial institutions and information reflected on this report is based on statements your custodians have provided to UBS Financial Services, at your request. Other than information included for accounts you hold at UBS Financial Services, we are not responsible for the accuracy or completeness of any information included in this report. UBS Financial Services does not provide advice with respect to your assets at other firms. This report includes information only as of the date of the account statements provided, which may differ by account or custodian. Your UBS Financial Services account statements are the only official record of your holdings with us and are not replaced, amended or superceded by any of the information presented in this Report.

This report does not constitute the solicitation to purchase or sell any specific security. This report may include a performance analysis of a variety of accounts, each with different investments, investment objectives and risk parameters. As a result, the overweighting or underweighting of an account in a particular sector or asset class should not be viewed as an isolated factor in making investment/liquidation decisions. Rather, such decisions should be assessed on an account by account basis and after an assessment of the overall impact of such decisions on a portfolio consisting of all your accounts. Page 59 Important Information About This Report

Market Values Market values used or presented in this report are obtained from sources believed to be reliable. UBS Financial Services and its representatives make no representation or assurance that the market values presented in the report are true and accurate.

Estimates Estimates of annual interest or dividend income should not be relied upon. The estimates are based either on past payout experience or scheduled interest payments. Past payouts are not an indication of future payouts and there can be no assurance that any fixed income security will meet its scheduled interest payments.

Policy Statements Neither UBS Financial Services nor your Institutional Consultant is responsible for ensuring that your investment policy statement complies with all legal, actuarial or other requirements that may apply to you. That responsibility rests solely with you and you should consult your legal and tax advisors regarding those matters.

Performance Results Gross performance This report may illustrate net or gross of fee performance, but not both. While gross performance is valuable when reviewing a manager's performance relative to a particular index or peer group, note that such information does not reflect management fees, wrap fees, transaction costs or your Institutional consulting fees.

The payment of fees and expenses will reduce the performance of the account and the reduction in performance will have a cumulative effect over time. The net effect of the payment of fees on the annualized performance, and the compounded or cumulative effect over time, is dependent on the amount of the fee and the account's investment performance. For example, an account that experiences an annual gross performance of 10% but incurs a 2.8% annual fee that is deducted quarterly on a prorated basis, will experience net annual performance of 7.1%, a reduction of 2.9% per year.

Net of fees performance If your assets are custodied at UBS Financial Services and you have selected one or more of our advisory programs as an investment option and pay the program fee directly from those accounts, you will receive separate performance reports for those accounts which illustrate the performance of your portfolio on a net of fee basis.

Page 60 Index Information This report presents the current and historical performance of certain market indexes. These indexes may represent a broad range of asset classes, market segments and investment styles. Depending upon the composition of your portfolio and your accounts and depending on your investment objectives, these indexes may not be an appropriate measure or benchmark against which to compare the performance of a particular account or all of your accounts. Consequently, the performance of the indexes is presented for illustration purposes only.

Although the performance of an index is often used as a benchmark against which to compare the performance of an actively managed separate account or actively managed mutual fund, actively managed accounts and mutual funds are not generally restricted to investing only in the securities that are included in the index. As a result, the securities held in your account will differ from the securities included in the index and the performance of the account may likewise differ from the performance of the index. The performance of an index reflects the passive performance of an unmanaged universe of securities. The performance of an index does not reflect advisory or transaction fees, all of which would reduce the overall return. Indexes are not available for direct investment. The past performance of an index is no guarantee of future results.

Benchmark Rebalancing Comparative benchmarks comprising more than one index are constructed each month based on the return of the constituent indexes in the comparative benchmark and the respective weights assigned to each constituent index.

Target Asset Allocation The target asset allocation is the percentage allocation of your total or composite investment fund among the asset classes in which you have decided to invest as set forth in your Investment Policy Statement.

Policy Index For each separate account, the Policy Index is the passive index that you have selected to serve as a benchmark against which to compare the performance of the separate account. If the account is balanced, indexes may be a blend of indexes.

For the total or composite investment fund, the Policy Index is a composite of one or more passive indexes that you have selected and that are weighted according to the percentage weightings set forth in your Investment Policy Statement. The performance of your total or composite investment fund is compared against the performance of the Policy Index that you have selected for the composite.

Page 61 For the purposes of calculating the performance of the Policy Index for the composite investment fund, the Policy Index is recalculated using the percentage weightings set forth in your Investment Policy Statement on a monthly or quarterly basis depending on the convention that you selected.

The Policy Index that you selected for your total or composite investment fund is shown below: 35.00% Barclays Aggregate, 15.00% MSCI ACWI ex US Net, 12.50% Russell 1000 Growth, 12.50% Russell 1000 Value, 7.50% Russell 2000, 7.50% Russell Midcap, 5.00% Citigroup World Gov't Bond, 5.00% NAREIT Equity. Account Valuation This report uses a time-weighted rate of return, a method that calculates portfolio value using the beginning and ending portfolio values for the month and weighs each contribution/withdrawal by the amount of time invested.

Performance Start Date The inception date shown in the report may or may not be the date that the UBS Institutional Consulting Group began providing services or performance information to you and may not be the date that an account was first invested in securities. Contact your Institutional Consultant for more information regarding the actual inception date.

Manager Data Data concerning various managers' portfolio performance is obtained from sources believed to be reliable. This data is provided for comparative purposes only. UBS Financial Services does not guarantee the accuracy or veracity of this information. Different performance calculation methods may be used to calculate each manager's portfolio performance. Investment objectives of similar style portfolios of other managers may not match exactly your investment objectives. Brochure Rule 204-3 of the Investment Advisers Act of 1940 requires that we make an annual offer to clients to send to them, without charge, a written disclosure statement. We will be glad to provide you with a copy of such statement upon your written request.

UBS Financial Services Inc. www.ubs.com/financialservicesinc 050707-1138

UBS Financial Services Inc. is a subsidiary of UBS AG. Page 63  Gwinnett County Public Employees Retirement System - Q2 2012 As of June 30, 2012 Investment Management Fee Analysis Estimated Market Value as % of Estimated Annual Fee Account Fee Schedule of 06/30/2012 Portfolio Annual Fee ($) (%) Ranier 0.75% of First $10.0 Mil, $85,699,458 11.879% $453,497 0.53% 0.50% Remainder

Barrow Hanley 0.75% of First $10.0 Mil, $86,439,416 11.981% $303,599 0.35% 0.50% of Next $15.0 Mil, 0.25% of Next $175.0 Mil,

Optimum/SSGA Mid Cap Index - Liquidated

Atlanta Capital 0.80% of First $50.0 Mil, $54,580,207 7.565% $422,901 0.77% 0.50% of Next $50.0 Mil,

Invesco Real Estate 0.75% of First $10.0 Mil, $34,851,513 4.831% $241,535 0.69% 0.70% of Next $10.0 Mil, 0.65% Remainder

1607 Capital Partners 0.75% of First $100.0 Mil, $93,335,117 12.937% $700,013 0.75% 0.65% of Next $150.0 Mil, 0.50% on 250.0 Mil or <

Fairpointe Capital 0.65 Flat $17,119,817 2.373% $111,279 0.65%

Vaughan Nelson 0.85% of First $10.0 Mil, $17,471,969 2.422% $141,040 0.81% 0.75% of Next $15.0 Mil, 0.65%on 25.0 Mil or <

 Institutional Consulting Group  Gwinnett County Public Employees Retirement System As of June 30, 2012 Investment Management Fee Analysis Estimated Market Value as % of Estimated Annual Fee Account Fee Schedule of 06/30/2012 Portfolio Annual Fee ($) (%)

William Blair 0.90 of First $10.0 Mil, $17,957,178 2.489% $149,679 0.83% 0.75% of Next $20.0 Mil, 0.65% of Next $20.0 Mil, 0.60% of Next $50.0 Mil,

ING Asset Management 0.30% of First $50.0 Mil, $170,422,022 23.622% $401,760 0.24% 0.25% of Next $50.0 Mil, 0.18% of Next $400.0 Mil,

Templeton Global Bond 0.82% Expense Ratio $17,733,019 2.458% $145,411 0.82% Not Billed Dreyfus International 0.65% Expense Ratio $17,599,084 2.439% $114,394 0.65% Not Billed Ryan Labs 0.30% of First $10.0 Mil $101,636,665 14.088% $199,637 0.20% 0.28% of Next $10,0 Mil 0.25% of Next $15.0 Mil, 0.20% of Next $15.0 Mil, 0.145% of Next $50.0 Mil, 0.10% of Next $200.0 Mil,

Cash Account No Fee $6,605,333 0.916% N/A N/A

Total Plan $721,450,798 100.00%

Prepared For: Gwinnett County Public Employees Retirement System  Institutional Consulting Group Manager Status and Watch List 2ndQ12

Compliance with Criteria 1 Year 3/5 Year Cummulative Watch Manager Criteria Criteria Criteria List YES NO YES NO YES NO YES NO U.S. Equity Rainier √ √ √ √ Barrow Hanley √ √ √ √ Atlanta Capital √ √ √ √ Invesco REIT √ √ √ √ Fairpointe Capital NA NA NA NA Vaughan Nelson NA NA NA NA William Blair NA NA NA NA International Equity 1607 Capital Partners √ √ √ √ Fixed Income ING √ √ √ √ Ryan Labs NA NA NA NA Templeton Global Bond NA NA NA NA Dreyfus International NA NA NA NA

Gwinnett County Public Employees Retirement System

Downgraded Bonds 2Q12 Coupo Stated Moody's S&P Fitch Effective Current Market Market Value % Market Position Description n Maturity CUSIP Rating Rating Rating Rating Face (m) Price (m) NAV

Country Wide Mortgage Backed Securities 4.5 1/25/2019 12669FMP5 Baa3 Ba3 $21,973 $102.17 $22,448

Watch List Commentary

Commentary from Paul Irvine: We have been informed that Moody’s has downgraded a Country Wide MBS security cusip 12669FMP5 from Baa3 to Ba3. Fitch is currently rating this security as AAA. The par value held as of 03/31/2012 was $24,669, market value is approx $25,000 which represent 0.01% of the portfolio. We recommend holding this bond until we can find the appropriate price for its small lot size, as well as we like the structure and characteristics of this bond.

DC PLANS

Gwinnett County Retirement Plans Fund Performance Review June 30, 2012

Gwinnett County For Plan Sponsor Use Only Section

I. Economic Review

II. Investment Analysis •Efficient Frontier Map: Plan Diversification •Performance Monitoring •Manager Style and Manager Style Drift •Compliance Report Card

III. Glossary

Gwinnett County For Plan Sponsor Use Only Economic Review

Gwinnett County For Plan Sponsor Use Only Current Economic Conditions

6% GDP

4% – Real Gross Domestic Product increased at an 2% annual rate of 1.9% in the first quarter of 2012.1 0% • Among the largest contributors to GDP for the -2% Super100 quarter were personal consumption and residential -4% fixed investment. The deceleration from the fourth -6% quarter of 2011 was due mainly to a slowing in inventories and nonresidential fixed investment. -8% • Motor vehicle output added 1.6% to GDP for the

-10%

Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4

Q3 quarter, while sales of computers subtracted 0.5%.

2005 Q2 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012

Source: Bureau of Economic Analysis, http://www.bea.gov/national/xls/gdpchg.xls

6% Inflation 5% – The Consumer Price Index (CPI) increased 4% 2 3% 1.7% for the 12 months ending in May. 2% • The 12 month change in Core CPI (CPI ex food 1% 0% & energy) was 2.3% over the previous 12 -1% months. -2% • The gasoline index declined 6.8% in May. Over -3%

the past 12 months, the gasoline index declined

2009 2010 2011 2012 2008 4.0%. This has helped bring the broader CPI Core CPI Energy Index down 3.9% over the past year.

Source: Bureau of Labor Statistics, http://www.bls.gov/data/#prices

FOR FIELD AND PLAN SPONSOR USE ONLY 4 Although economic data and information is derived from a variety of financial publications and economic reporting companies, including 4 Moody’s, S&P, etc., we cannot guarantee the completeness or accuracy of data shown. Past performance is not a guarantee of future results.

Current Economic Conditions

Employment Statistics 18% 16% – The official unemployment rate (U-3) 14% remained at 8.2% at the end of June.3 12%

10% • Non-farm payrolls increased by 80,000 in

8% June. For the second quarter, the number of 6% net new jobs added to the workforce 4% averaged 75,000 per month, compared to an 2% average of 226,000 per month for the first 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 quarter.

Unemploymen Marginally Attached • The “U-6 Rate”, the most comprehensive t Rate (U-3) Rate (U-6) measure of the nation’s employment situation, increased for the third consecutive Source: Bureau of Labor Statistics, http://www.bls.gov/news.release/empsit.t15.htm month to 14.9%.

2,500 Housing 2,250 – May Housing Starts decreased 4.8% from the 2,000 1,750 April measure.4 1,500 1,250 • However, this number represents a 28.5% 1,000 increase from the May, 2011 measure. 750 Thousands 500 • Building permits increased 7.9% from the 250 revised April estimate. This represents a 25.0% 2006 2007 2008 2009 2010 2011 2012 increase over the previous 12 months.

Housing Starts

Source: U.S. Census Bureau, http://www.census.gov/const/www/newresconstindex.html

FOR FIELD AND PLAN SPONSOR USE ONLY 5 Although economic data and information is derived from a variety of financial publications and economic reporting companies, including 5 Moody’s, S&P, etc., we cannot guarantee the completeness or accuracy of data shown. Past performance is not a guarantee of future results.

GDP Headwinds – The “Fiscal Cliff”

At the end of 2012, a combination of several tax increases and spending cuts are due to take place that could be a considerable drag on U.S. economic growth:

• Expiration of the Bush-era Tax Cuts • Expiration of the Alternative Minimum Tax relief • Expiration of the Middle Class Tax Relief and Job Creation Act • (The 2% payroll tax cut extended through 12/31/12) • Affordable Care Act tax increases begin • The 2011 Budget Control Act spending cuts begin • Expiration of Extended Unemployment Benefits

According to Congressional Budget Office estimates, these fiscal changes would push the U.S. economy into recession during the first half of 2013, with GDP contracting an estimated 1.3%5 If Congress were to remove these fiscal provisions, it may benefit the economy in the near-term, but it would eliminate any progress toward long-term debt reduction.

As is the case with many nations around the world, the U.S. has significant fiscal issues to address.

Source: Congressional Budget Office

FOR FIELD AND PLAN SPONSOR USE ONLY 6 Although economic data and information is derived from a variety of financial publications and economic reporting companies, including 6 Moody’s, S&P, etc., we cannot guarantee the completeness or accuracy of data shown. Past performance is not a guarantee of future results.

Market Update – Domestic Equity

Zephyr StyleADVISOR Zephyr StyleADVISOR: Advised Assets Group LLC

Domestic Equity Indices - Total Return as of June 2012

S&P 500 Russell 1000 Growth Russell 1000 Value Russell Midcap Growth Russell Midcap Value Russell 2000 Growth Russell 2000 Value

5 Return

-5

3 months YTD 1 year 3 years 5 years 10 years

 Domestic equity markets gave back a portion of their gains from the first quarter. • Large cap value stocks saw the best relative performance for the three months. • Growth stocks underperformed value stocks across all capitalizations for the quarter. • Over the past twelve months, large cap stocks have shown positive performance while small and midcap stocks have produced small losses.

FOR FIELD AND PLAN SPONSOR USE ONLY 7 Although economic data and information is derived from a variety of financial publications and economic reporting companies, including 7 Moody’s, S&P, etc., we cannot guarantee the completeness or accuracy of data shown. Past performance is not a guarantee of future results.

Market Update – International Equity

Zephyr StyleADVISOR Zephyr StyleADVISOR: Advised Assets Group LLC

International Equity Indices - Total Return as of June 2012

MSCI EAFE MSCI AC WORLD INDEX ex USA MSCI EUROPE MSCI JAPAN MSCI CHINA MSCI EM (EMERGING MARKETS)

20 15

0 Return -5

-10

-15

3 months YTD 1 year 3 years 5 years 10 years

 International stocks experienced negative performance for the quarter. • Emerging market stocks experienced the largest losses as investors turned away from riskier assets. • Chinese stocks showed the best relative performance for the quarter. • Despite stumbling in the second quarter, most major international indices remain positive for 2012.

FOR FIELD AND PLAN SPONSOR USE ONLY 8 Although economic data and information is derived from a variety of financial publications and economic reporting companies, including 8 Moody’s, S&P, etc., we cannot guarantee the completeness or accuracy of data shown. Past performance is not a guarantee of future results.

Market Update – Fixed Income

Zephyr StyleADVISOR Zephyr StyleADVISOR: Advised Assets Group LLC Fixed Income Returns as of June 2012

Barclays Capital U.S. Aggregate Barclays Capital U.S. Government: Intermediate Barclays Capital U.S. Treasury: U.S. TIPS Barclays Capital U.S. Intermediate Credit Barclays Capital Intermediate U.S. High Yield Citigroup WorldBIG Index

16 14

Return 6

0 3 months YTD 1 year 3 years 5 years 10 years

 Fixed Income markets saw small gains Treasury Yield Curve6 Source: U.S. Treasury for the quarter. www.treasury.gov 5.0% • TIPS showed the best performance for the 4.0% 3.0% quarter as investors continue to keep a 2.0% watchful eye out for inflation. 1.0% 0.0% • High Yield bonds have shown the best 1 month 90 days 1 year 2 year 3 year 5 year 7 year 10 year 20 year 30 year returns for 2012 by a wide margin. 6/30/2012 6/30/2011 6/30/2010

FOR FIELD AND PLAN SPONSOR USE ONLY 9 Although economic data and information is derived from a variety of financial publications and economic reporting companies, including 9 Moody’s, S&P, etc., we cannot guarantee the completeness or accuracy of data shown. Past performance is not a guarantee of future results.

1 Bureau of Economic Analysis, U.S. Department of Commerce, News Release, June 28, 2012, www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm 2 Bureau of Labor Statistics, U.S. Department of Labor, Economic News Release “Consumer Price Index – May 2012”, June 14, 2012, www.bls.gov/news.release/pdf/cpi.pdf 3 Bureau of Labor Statistics, U.S. Department of Labor, Economic News Release “Employment Situation Summary”, July 6, 2012, www.bls.gov/news.release/empsit.nr0.htm 4 U.S. Census Bureau, U.S Department of Housing and Urban Development, Economic News Release “New Residential Construction in May, 2012”, June 19, 2012. www.census.gov/const/www/newresconstindex.html 5 Congressional Budget Office, “Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013”, May, 2012, http://www.cbo.gov/publication/43262 6 U.S. Department of the Treasury, Data and Charts Center, http://www.treasury.gov/resource-center/data-chart-center/Pages/index.aspx

FOR FIELD AND PLAN SPONSOR USE ONLY 10 Although economic data and information is derived from a variety of financial publications and economic reporting companies, including 10 Moody’s, S&P, etc., we cannot guarantee the completeness or accuracy of data shown. Past performance is not a guarantee of future results.

This Economic and Capital Markets Review is being offered as informational and educational material provided to a Plan Sponsor or a Representative, duly authorized and acting on behalf of a Plan Sponsor, to assist the Plan Sponsor in understanding the general investment environment.

This document is not intended as a recommendation, solicitation or offering of any particular securities by Great-West Life & Annuity Insurance Company nor any of its subsidiaries or affiliates.

The purpose of this document is to provide investment-related information only for the benefit of the Plan Sponsor in its role as a fiduciary to the plan, not as investment advice for plans or plan participants. Although we believe the data contained in this report is generally from reliable sources, Advised Assets Group, LLC cannot guarantee its completeness or accuracy. Economic data and information are derived from a variety of financial publications and economic reporting companies, including Moody’s, S&P, etc. The opinions expressed herein are those of AAG as of 10/10/2011 and are subject to change. No forecast is guaranteed.

Prior to selecting investment options, Plan Sponsors should consider the investment objectives, risks, fees and expenses carefully before selecting investment options for their Plan. For this and other important information you may obtain prospectuses for mutual funds, any applicable annuity contract and the annuity's underlying funds and/or additional disclosure documents from your registered representative. Read them carefully before investing.

Plan fiduciaries should review the educational material provided and consult with their investment advisers if necessary to make investment decisions. Neither AAG, not its representatives, agents, or affiliates are permitted to give legal, ERISA, or tax advice. Any discussion of these matters included or related to this document or other educational information is provided for informational purposes only. Such discussion does not purport to be complete or to cover every situation. Current tax and ERISA law are subject to interpretation and legislative change. The appropriateness of any product for any specific taxpayer may vary depending on the particular set of facts and circumstances. You should consult with and rely on your own legal and tax advisers.

MSCI EAFE® Index is a trademark of Morgan Stanley Capital International. Inc. and is an unmanaged index considered indicative of the International equity market. S&P 500® Index is a trademark of the Standard & Poor’s Financial Services, LLC and is an unmanaged index considered indicative of the domestic Large-Cap equity market. Russell 2000® Index is a trademark of the Frank Russell Company and is an unmanaged index considered indicative of the domestic Small-Cap equity market. Russell 1000® Index is a trademark of the Frank Russell Company and is an unmanaged index considered indicative of the domestic Large-Cap equity market. Russell Midcap® Index is a trademark of the Frank Russell Company and is an unmanaged index considered indicative of the domestic mid-cap equity market. Barclays Capital is a trademark of Barclays Capital, the investment banking division of Barclays Bank PLC.

Advised Assets Group, LLC is a wholly owned subsidiary of Great-West Life & Annuity Insurance Company and a federally registered investment adviser. Put Our Power Behind You® is a registered service mark of Advised Assets Group, LLC. All rights reserved. Form #AAG135889 (10/11)

FOR FIELD AND PLAN SPONSOR USE ONLY 11 Although economic data and information is derived from a variety of financial publications and economic reporting companies, including 11 Moody’s, S&P, etc., we cannot guarantee the completeness or accuracy of data shown. Past performance is not a guarantee of future results.

Investment Analysis

Gwinnett County For Plan Sponsor Use Only Gwinnett County Plan Options

Emerging Markets Oppenheimer Devel Mkts Y International Equity Artisan International Inv Highest Risk of Principal Oppenheimer Global Janus Global Sel Dreyfus Intl Stock Index Small Cap Growth Asset Class Small Cap Blend Neuberger Berman Genesis Tr Royce Low Priced Stock Svc Small Cap Value Columbia Small Cap Value Z Mid Cap Growth Baron Growth Artisan Mid Cap Mid Cap Value Perkins Mid Cap Value T American Cent Mid Cap Val A Large Cap Growth Janus Twenty T Fidelity Contrafund Amer Funds Gr Fund A Large Cap Blend Amer Funds Inv Co of Amer A Nuveen Tradewinds Val Opp I Blackrock Equity Idx F TIAA-CREF Eq Index Inst

Large Cap Value Van Kampen Growth & Income Y

Balanced/Asset Allocation Fidelity Puritan Maxim Profile Series Janus Balanced T (Target Risk Funds) Asset Allocation Funds: High-Yield Bond JP Morgan High Yield A Maxim SecureFoundation (Target Date Funds) Inv Grade Bond PIMCO Total Return Admin Vanguard Total Bd Mkt Idx Government Bond

Gwinnett County Stable Value Fund Lowest Risk of Principal For Plan Sponsor Use Only 13 Plan Investment OptionsJune 30, 2012 Performance Monitoring

Performance as of June 30, 2012 3 Months 1 Year 3 Years 5 Years 10 Years

% of Peer % of Peer % of Peer % of Peer % of Peer Group/Investment Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten

CAT: Diversified Emerging Mkts Oppenheimer Developing Markets Y -5.86 84 -9.98 91 14.35 96 4.26 98 - - Benchmark 1: MSCI EM -8.89 -15.95 9.77 -0.09 14.08 Benchmark 2: CAT: Diversified Emerging Mkts -8.16 -15.79 9.03 -1.95 12.38 Number of investments ranked ` 575 506 346 237

CAT: Foreign Large Blend Artisan International Inv -4.41 95 -3.75 100 10.99 96 -2.73 87 5.77 75 Dreyfus Intl Stock Index -7.02 47 -14.09 49 5.53 35 -6.46 34 4.53 47 Benchmark 1: MSCI EAFE -7.13 -13.83 5.96 -6.10 5.14 Benchmark 2: CAT: Foreign Large Blend -6.84 -13.93 6.42 -5.90 4.52 Number of investments ranked 835 811 735 585 326

CAT: World Stock Janus Global Select T -18.83 1 -21.27 2 6.94 11 -3.16 43 7.05 67 Oppenheimer Global Y -8.10 20 -10.90 24 11.47 61 -2.06 62 6.58 56 Benchmark 1: MSCI World -5.07 -4.98 10.97 -2.96 5.18 Benchmark 2: CAT: World Stock -5.96 -7.56 10.29 -2.95 5.45 Number of investments ranked 984 892 711 530 303

CAT: Small Blend Royce Low Priced Stock Svc -11.28 1 -18.17 2 13.47 8 0.33 59 7.39 68 Benchmark 1: Russell 2000 TR -3.47 -2.08 17.80 0.54 7.00 Benchmark 2: CAT: Small Blend -4.95 -3.85 16.86 -0.56 6.46 Number of investments ranked 677 645 587 507 305

CAT: Small Value Columbia Small Cap Value II Z -4.51 54 -3.23 49 18.15 66 0.26 58 8.08 71 Benchmark 1: Russell 2000 Value TR -3.01 -1.44 17.43 -1.05 6.50 Benchmark 2: CAT: Small Value -4.80 -2.57 17.38 -0.33 6.74 Number of investments ranked 376 359 284 254 151

Highlighted entries indicate active funds trailing the majority of its peer group over 3 and 5 years. DATA SOURCE: Morningstar 6/30/12 For Plan Sponsor Use Only 14 June 30, 2012 Performance Monitoring

Performance as of June 30, 2012. 3 Months 1 Year 3 Years 5 Years 10 Years

% of Peer % of Peer % of Peer % of Peer % of Peer Group/Investment Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten CAT: Mid-Cap Growth Neuberger Berman Genesis Tr -3.11 92 -0.96 73 16.65 43 3.62 78 9.62 94 Baron Growth Retail -1.28 98 -0.89 74 17.50 55 1.92 57 7.79 63 Artisan Mid Cap Inv -7.64 21 -0.73 76 20.80 91 4.91 93 8.86 83 Benchmark 1: Russell Mid Cap Growth TR -5.60 -2.99 19.01 1.90 8.47 Benchmark 2: CAT: Mid-Cap Growth -6.04 -4.53 16.78 0.48 6.25 Number of investments ranked 779 750 678 600 434

CAT: Mid-Cap Value Perkins Mid Cap Value T -5.63 22 -3.66 50 11.95 7 1.43 83 8.18 82 American Century Mid Cap Value A -2.59 90 2.24 90 16.85 52 1.95 88 Benchmark 1: Russell Mid Cap Value TR -3.26 -0.37 19.92 -0.13 8.17 Benchmark 2: CAT: Mid-Cap Value -4.78 -3.26 16.67 -0.57 6.56 Number of investments ranked 430 397 335 296 149

CAT: Large Growth Fidelity Contrafund -3.52 89 6.11 90 16.56 77 2.93 81 8.17 93 American Funds Growth Fund of Amer A -4.19 81 -0.15 38 12.05 18 -0.49 26 6.38 79 Janus Twenty T -5.22 58 3.37 76 10.04 3 2.44 73 8.19 94 Benchmark 1: Russell 1000 Growth TR -4.02 5.76 17.50 2.87 6.03 Benchmark 2: CAT: Large Growth -5.63 0.76 14.56 0.55 4.49 Number of investments ranked 1,760 1,686 1,510 1,299 857

CAT: Large Blend American Funds Invmt Co of America A -2.42 90 2.50 57 12.43 24 -0.80 47 5.10 65 TIAA-CREF Equity Index Instl -3.17 68 3.81 69 16.66 89 0.40 79 5.77 83 Nuveen Tradewinds Value Opportunities I -10.06 2 -12.27 2 10.82 8 2.87 97 - - Maxim Aggressive Profile I -5.14 24 -2.94 18 13.52 40 -1.72 28 5.31 74 Benchmark 1: S&P 500 -2.91 4.75 15.67 -0.44 4.69 Benchmark 2: CAT: Large Blend -4.17 0.82 13.96 -0.94 4.40 Number of investments ranked 1,805 1,708 1,518 1,330 826

Highlighted entries indicate the fund trails the majority of its peer group over 3 and 5 years. DATA SOURCE: Morningstar 6/30/12 For Plan Sponsor Use Only 15 June 30, 2012 Performance Monitoring

Performance as of June 30, 2012

3 Months 1 Year 3 Years 5 Years 10 Years

% of Peer % of Peer % of Peer % of Peer % of Peer Group/Investment Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten CAT: Large Value Invesco Van Kampen Growth and Income Y -2.13 77 0.90 53 14.44 63 -0.69 74 - - Benchmark 1: Russell 1000 Value TR -2.20 3.01 15.80 -2.19 5.28 Benchmark 2: CAT: Large Value -3.63 0.44 13.75 -2.38 4.28 Number of investments ranked 1,289 1,223 1,095 970

CAT: Aggressive Allocation Maxim Moderately Aggressive Profile I -3.54 62 -0.79 72 11.93 52 0.88 77 5.91 78 Benchmark 1: Morningstar Aggr Target Risk -4.54 -3.11 13.76 -0.06 7.10 Benchmark 2: CAT: Aggressive Allocation -3.66 -2.34 11.69 -0.20 5.05 Number of investments ranked 468 435 371 345 140

CAT: Moderate Allocation Fidelity Puritan -2.09 60 3.71 81 13.42 89 2.22 72 6.11 81 Janus Balanced T -2.83 28 2.04 65 10.13 24 4.89 99 6.72 91 Maxim Moderate Profile I -2.73 32 0.08 38 10.57 34 2.16 70 5.93 73 Maxim Moderately Conservative Profile I -1.95 66 1.14 51 9.47 14 3.03 88 5.86 68 Benchmark 1: Morningstar Mod Aggr Target Risk -3.70 -1.39 12.65 1.36 7.09 Benchmark 2: CAT: Moderate Allocation -2.18 1.02 11.08 1.02 4.84 Number of investments ranked 919 882 762 669 368

CAT: Conservative Allocation Maxim Conservative Profile I -1.01 35 2.02 39 8.52 28 3.81 67 5.37 63 Benchmark 1: Morningstar Conserv Target Risk 0.11 5.16 7.44 5.15 5.79 Benchmark 2: CAT: Conservative Allocation -0.61 2.42 9.63 2.96 4.51 Number of investments ranked 686 656 569 484 188

CAT: High Yield Bond JPMorgan High Yield A Load Waived 1.25 48 4.70 34 14.03 38 6.98 71 9.17 81 Benchmark 1: Barclays US HY Interm TR 1.74 7.11 15.59 8.07 9.78 Benchmark 2: CAT: High Yield Bond 1.14 5.12 14.30 5.51 7.81 Number of investments ranked 622 582 513 450 308

DATA SOURCE: Morningstar Highlighted entries indicate the fund trails the majority of its peer group over 3 and 5 years. 6/30/12

For Plan Sponsor Use Only 16 June 30, 2012 Performance Monitoring

Performance as of June 30, 2012 3 Months 1 Year 3 Years 5 Years 10 Years

% of Peer % of Peer % of Peer % of Peer % of Peer Group/Investment Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten CAT: Intermediate-Term Bond PIMCO Total Return Admin 2.73 94 6.69 45 8.41 55 8.95 97 6.71 92 Vanguard Total Bond Market Index Signal 2.16 70 7.57 73 6.85 23 6.82 64 - - Benchmark 1: Barclays US Govt/Credit 5-10 Yr TR 3.22 11.03 9.97 8.57 6.89 Benchmark 2: CAT: Intermediate-Term Bond 1.81 6.41 8.15 5.69 4.94 Number of investments ranked 1,221 1,180 1,014 880 608

CAT: Target Date 2011-2015 Maxim SecureFoundation LT 2015 Port G -1.86 37 1.30 55 ------Benchmark 1: Morningstar Lifetime Moderate 2015 -1.64 3.57 12.16 3.71 7.89 Benchmark 2: CAT: Target Date 2011-2015 -1.56 0.60 10.72 0.78 4.49 Number of investments ranked 169 166

CAT: Target Date 2016-2020 Maxim SecureFoundation LT 2020 Port G -1.82 53 1.51 69 ------Benchmark 1: Morningstar Lifetime Moderate 2020 -2.24 2.51 12.91 2.86 7.98 Benchmark 2: CAT: Target Date 2016-2020 -1.97 0.86 11.27 0.68 5.03 Number of investments ranked 228 211

CAT: Target Date 2021-2025 Maxim SecureFoundation LT 2025 Port G -2.29 62 -0.43 49 ------Benchmark 1: Morningstar Lifetime Moderate 2025 -2.97 1.01 13.53 1.92 7.94 Benchmark 2: CAT: Target Date 2021-2025 -2.63 -0.70 12.17 -0.28 Number of investments ranked 166 157

CAT: Target Date 2026-2030 Maxim SecureFoundation LT 2030 Port G -3.14 51 -1.44 41 ------Benchmark 1: Morningstar Lifetime Moderate 2030 -3.61 -0.50 13.86 1.17 7.84 Benchmark 2: CAT: Target Date 2026-2030 -3.12 -0.94 12.12 -0.72 4.90 Number of investments ranked 227 210

CAT: Target Date 2031-2035 Maxim SecureFoundation LT 2035 Port G -3.75 43 -2.28 34 ------Benchmark 1: Morningstar Lifetime Moderate 2035 -4.04 -1.61 13.94 0.75 7.79 Benchmark 2: CAT: Target Date 2031-2035 -3.60 -1.90 12.71 -0.90 Number of investments ranked 160 151 Highlighted entries indicate the fund trails the majority of its peer group over 3 and 5 years. DATA SOURCE: Morningstar 6/30/12 For Plan Sponsor Use Only 17 June 30, 2012 Performance Monitoring

Performance as of June 30, 2012

3 Months 1 Year 3 Years 5 Years 10 Years

% of Peer % of Peer % of Peer % of Peer % of Peer Group/Investment Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten CAT: Target Date 2036-2040 Maxim SecureFoundation LT 2040 Port G -4.18 43 -2.80 38 ------Benchmark 1: Morningstar Lifetime Moderate 2040 -4.23 -2.23 13.89 0.58 7.81 Benchmark 2: CAT: Target Date 2036-2040 -3.89 -2.06 12.54 -1.24 4.96 Number of investments ranked 224 207

CAT: Target Date 2041-2045 Maxim SecureFoundation LT 2045 Port G -4.36 35 -3.19 30 ------Benchmark 1: Morningstar Lifetime Moderate 2045 -4.34 -2.60 13.81 0.50 7.87 Benchmark 2: CAT: Target Date 2041-2045 -4.04 -2.47 12.88 -1.20 Number of investments ranked 160 144

CAT: Target Date 2046-2050 Maxim SecureFoundation LT 2050 Port G -4.48 35 -3.64 26 ------Benchmark 1: Morningstar Lifetime Moderate 2050 -4.43 -2.92 13.72 0.45 7.93 Benchmark 2: CAT: Target Date 2046-2050 -4.06 -2.26 12.77 -1.15 5.00 Number of investments ranked 199 176

CAT: Target Date 2051+ Maxim SecureFoundation LT 2055 Port G -4.52 31 -3.81 21 ------Benchmark 1: Morningstar Lifetime Moderate 2050 -4.43 -2.92 13.72 0.45 7.93 Benchmark 2: CAT: Target Date 2051+ -4.36 -2.69 12.62 -1.28 4.93 Number of investments ranked 109 92

DATA SOURCE: Morningstar Highlighted entries indicate the fund trails the majority of its peer group over 3 and 5 years. 6/30/12 For Plan Sponsor Use Only 18 June 30, 2012 Stable Asset Fund

Gwinnett County Stable Asset Fund

Performance (as of June 30, 2012) 1 Year 3 Years 5 Years Fund* 3.06% 3.45% 3.85% Morningstar Taxable MM Funds 0.02% 0.03% 0.90% 1-3 Year Treasuries 0.81% 1.63% 3.31%

Average Credit Quality: AA+ Average Duration: 2.68 years BV to MV: 104.2%

* Fund performance is Net of Fees.

For Plan Sponsor Use Only 19 June 30, 2012 Manager Style

Each quadrant of the graph represents one of the four major domestic equity components of the market. From top left Manager Style Graph: working clockwise the quadrants include Large Value, Large Growth, Small Growth and Small Value.

Manager Style July 2007 - June 2012 (Single Computation)

Large

Russell Top 200 Value Russell Top 200 Growth 1

Baron Growth Retail Royce Low Priced Stock Svc Neuberger Berman Genesis Tr Columbia Small Cap Value II Z Russell Midcap Value Russell Midcap Growth Artisan Mid Cap Inv 0 Nuveen Tradewinds Value Opportunities I Janus Twenty T Fidelity Contrafund American Funds Growth Fund of Amer A American Funds Invmt Co of Amer A Perkins Mid Cap Value T American Century Mid Cap Value A Invesco Van Kampen Growth and Income Y -1 Russell 6-way Style Basis Russell 2000 Value Russell 2000 Growth

Small Value -1 0 1 Growth

For Plan Sponsor Use Only 20 June 30, 2012 Manager Style Drift

Manager Style July 2007 - June 2012 (36-Month Moving Windows, Computed Monthly)

Large

Russell Top 200 Value Russell Top 200 Growth 1

Small Value -1 0 1 Growth

For Plan Sponsor Use Only 21 June 30, 2012 Fund Compliance Report Card

Performance Summary: Gwinnett County Retirement Plans period ended 6/30/2012 Overall Rating1 Long-Term Rolling Analysis2 Fund Consecutive # of Quarters Morningstar Complex Ticker Composite %'s Mstar Quarters Below out of Category Rating Symbol Fund Name Overall Return Sharpe Rating Below trailing 12 Intl3 Diversified Emerging Mkts 1 ODVYX Oppenheimer Developing Markets Y 95.1 95.7 94.5 5 Above 0 0 out of 12 Pass Foreign Large Blend 1 ARTIX Artisan International Inv 88.8 85.0 92.5 4 Above 0 0 out of 12 Pass World Stock 1 OGLYX Oppenheimer Global Y 57.8 59.0 56.5 3 Above 0 0 out of 12 Pass World Stock 1 JORNX Janus Global Select T 38.0 40.0 36.0 2 Below 1 1 out of 12 Pass

Small-Cap5 Small Blend 1 RYLPX Royce Low Priced Stock Svc 41.3 46.0 36.5 3 Neutral 0 0 out of 12 Pass Small Value 1 NSVAX Columbia Small Cap Value II Z 59.3 66.7 52.0 4 Above 0 0 out of 12 Pass

Mid-Cap8 Mid-Cap Growth 1 ARTMX Artisan Mid Cap Inv 87.3 87.7 87.0 4 Above 0 0 out of 12 Pass Mid-Cap Growth 1 NBGEX Neuberger Berman Genesis Tr 72.8 70.0 75.5 4 Above 0 0 out of 12 Pass Mid-Cap Growth 1 BGRFX Baron Growth Retail 60.0 56.0 64.0 4 Above 0 0 out of 12 Pass Mid-Cap Value 1 ACLAX American Century Mid Cap Value A 78.0 69.0 87.0 4 Above 0 0 out of 12 Pass Mid-Cap Value 1 JMCVX Perkins Mid Cap Value T 52.5 57.0 48.0 4 Above 0 0 out of 12 Pass

Large-Cap Large Growth 1 FCNTX Fidelity Contrafund 84.8 82.7 87.0 5 Above 0 0 out of 12 Pass Large Growth 1 JAVLX Janus Twenty T 48.0 57.0 39.0 4 Neutral 0 0 out of 12 Pass Large Growth 1 AGTHX American Funds Growth Fund of Amer A 31.1 39.7 22.5 3 Neutral 0 0 out of 12 Pass Large Blend 1 NVORX Nuveen Tradewinds Value Opportunities I 54.5 53.0 56.0 4 Above 0 0 out of 12 Pass Large Blend 1 AIVSX American Funds Invmt Co of America A 40.6 44.7 36.5 3 Neutral 0 0 out of 12 Pass Large Blend 1 MXPPX Maxim Aggressive Profile I 38.2 46.3 30.0 3 Neutral 0 0 out of 12 Pass Large Value 1 ACGMX Invesco Van Kampen Growth and Income Y 66.6 69.7 63.5 4 Above 0 0 out of 12 Pass

Asst All/Other Aggressive Allocation 1 MXRPX Maxim Moderately Aggressive Profile I 70.5 69.0 72.0 4 Above 0 0 out of 12 Pass Moderate Allocation 1 FPURX Fidelity Puritan 77.4 79.3 75.5 4 Above 0 0 out of 12 Pass Moderate Allocation 1 JABAX Janus Balanced T 67.9 71.3 64.5 5 Above 0 0 out of 12 Pass Moderate Allocation 1 MXTPX Maxim Moderately Conservative Profile I 64.2 56.3 72.0 4 Above 0 0 out of 12 Pass Moderate Allocation 1 MXOPX Maxim Moderate Profile I 53.5 59.0 48.0 4 Above 0 0 out of 12 Pass Conservative Allocation 1 MXVPX Maxim Conservative Profile I 51.8 51.0 52.5 4 Above 0 0 out of 12 Pass

Bond9 High Yield Bond 1 OHYAX.lw JPMorgan High Yield A Load Waived 60.0 62.0 58.0 4 Above 0 0 out of 12 Pass Intermediate-Term Bond 1 PTRAX PIMCO Total Return Admin 71.4 81.3 61.5 5 Above 0 0 out of 12 Pass

Index Funds6 Foreign Large Blend 1 DIISX Dreyfus Intl Stock Index (idx) 35.1 37.7 32.5 3 N/A N/A N/A out of 12 Pass Large Blend 1 TIEIX TIAA-CREF Equity Index Instl (idx) 81.3 83.0 79.5 4 N/A N/A N/A out of 12 Pass Intermediate-Term Bond 1 VBTSX Vanguard Total Bond Market Index Signal (idx)53.1 47.7 58.5 3 N/A N/A N/A out of 12 Pass DATA SOURCE: Morningstar 6/30/12 For Plan Sponsor Use Only 22 June 30, 2012 Fund Compliance Report Card

Return Analysis: Gwinnett County Retirement Plans period ended 6/30/2012 2nd Qtr 2nd Qtr Performance vs. Benchmark (Annualized Returns and Return Percentiles %) 2012 2012 1 Year 1 Year 3 Year 3 Year 5 Year 5 Year 10 Year 10 Year Incept. Fund Name Return Percentile Return Percentile Return Percentile Return Percentile Return Percentile Date Intl3 Diversified Emerging Mkts Peer Group -8.32 50 -16.01 50 9.57 50 -1.53 50 12.47 50 Oppenheimer Developing Markets Y -5.86 84 -9.98 90 14.35 92 4.26 96 17.83 99 9/7/2005 Foreign Large Blend Peer Group -6.96 50 -14.11 50 6.27 50 -5.74 50 4.75 50 Artisan International Inv -4.41 94 -3.75 99 10.99 95 -2.73 87 5.77 73 12/28/1995 World Stock Peer Group -5.91 50 -7.38 50 10.77 50 -2.57 50 6.24 50 Oppenheimer Global Y -8.10 20 -10.90 25 11.47 60 -2.06 59 6.58 58 11/17/1998 Janus Global Select T -18.83 1 -21.27 3 6.94 11 -3.16 41 7.05 68 6/30/2000 Small-Cap5 Small Blend Peer Group -4.66 50 -3.05 50 17.08 50 0.00 50 6.48 50 Royce Low Priced Stock Svc -11.28 2 -18.17 2 13.47 7 0.33 60 7.39 71 12/15/1993 Small Value Peer Group -4.62 50 -3.23 50 17.40 50 -0.15 50 7.37 50 Columbia Small Cap Value II Z -4.51 56 -3.23 50 18.15 67 0.26 59 8.08 74 5/1/2002 Mid-Cap8 Mid-Cap Growth Peer Group -5.67 50 -4.49 50 17.36 50 1.40 50 7.09 50 Artisan Mid Cap Inv -7.64 22 -0.73 75 20.80 90 4.91 93 8.86 80 6/27/1997 Neuberger Berman Genesis Tr -3.11 91 -0.96 73 16.65 40 3.62 78 9.62 92 8/26/1993 Baron Growth Retail -1.28 98 -0.89 74 17.50 52 1.92 56 7.79 60 12/30/1994 Mid-Cap Value Peer Group -4.84 50 -3.65 50 16.80 50 -0.63 50 6.87 50 American Century Mid Cap Value A -2.59 89 2.24 89 16.85 51 1.95 87 N/A N/A 1/13/2005 Perkins Mid Cap Value T -5.63 24 -3.66 50 11.95 7 1.43 82 8.18 82 8/12/1998 Large-Cap Large Growth Peer Group -5.46 50 1.14 50 14.82 50 1.04 50 5.09 50 Fidelity Contrafund -3.52 88 6.11 89 16.56 75 2.93 80 8.17 93 5/17/1967 Janus Twenty T -5.22 57 3.37 74 10.04 3 2.44 74 8.19 94 4/30/1985 American Funds Growth Fund of Amer A -4.19 80 -0.15 38 12.05 16 -0.49 25 6.38 78 11/30/1973 Large Blend Peer Group -3.90 50 1.64 50 14.36 50 -0.61 50 4.80 50 Nuveen Tradewinds Value Opportunities I -10.06 2 -12.27 2 10.82 9 2.87 97 N/A N/A 12/9/2004 American Funds Invmt Co of America A -2.42 89 2.50 57 12.43 24 -0.80 46 5.10 64 1/2/1934 Maxim Aggressive Profile I -5.14 23 -2.94 18 13.52 39 -1.72 27 5.31 73 9/11/1997 Large Value Peer Group -3.66 50 0.61 50 13.85 50 -2.09 50 4.80 50 Invesco Van Kampen Growth and Income Y -2.13 77 0.90 53 14.44 61 -0.69 73 5.59 75 10/19/2004 Asst All/Other Aggressive Allocation Peer Group -3.86 50 -2.29 50 11.86 50 -0.25 50 5.34 50 Maxim Moderately Aggressive Profile I -3.54 59 -0.79 72 11.93 52 0.88 77 5.91 78 9/11/1997 Moderate Allocation Peer Group -2.35 50 0.93 50 11.33 50 1.48 50 5.31 50 Fidelity Puritan -2.09 61 3.71 82 13.42 89 2.22 69 6.11 80 4/16/1947 Janus Balanced T -2.83 30 2.04 66 10.13 25 4.89 98 6.72 91 9/1/1992 Maxim Moderately Conservative Profile I -1.95 67 1.14 53 9.47 14 3.03 85 5.86 70 9/11/1997 Maxim Moderate Profile I -2.73 34 0.08 41 10.57 35 2.16 68 5.93 74 9/11/1997 Conservative Allocation Peer Group -0.72 50 2.49 50 9.96 50 3.23 50 5.11 50 Maxim Conservative Profile I -1.01 37 2.02 40 8.52 29 3.81 66 5.37 58 9/11/1997 Bond9 High Yield Bond Peer Group 1.29 50 5.76 50 14.43 50 6.45 50 8.42 50 JPMorgan High Yield A Load Waived 1.25 45 4.70 31 14.03 36 6.98 68 9.17 82 11/13/1998 Intermediate-Term Bond Peer Group 1.94 50 6.91 50 8.19 50 6.46 50 5.39 50 PIMCO Total Return Admin 2.73 94 6.69 43 8.41 56 8.95 97 6.71 91 9/8/1994 Index Funds Dreyfus Intl Stock Index (idx) -7.02 47 -14.09 50 5.53 36 -6.46 33 4.53 44 6/30/1997 TIAA-CREF Equity Index Instl (idx) -3.17 66 3.81 68 16.66 89 0.40 78 5.77 82 7/1/1999 Vanguard Total Bond Market Index Signal (idx)2.16 70 7.57 72 6.85 24 6.82 63 5.50 56 9/1/2006 For Plan Sponsor Use Only 23 DATA SOURCE: Morningstar 6/30/12 June 30, 2012 Fund Compliance Report Card

Sharpe Ratio and Expense Analysis: Gwinnett County Retirement Plans period ended 6/30/2012 Sharpe Ratios and Percentiles % Standard Deviation Expense Expense Manager Fund Size Fund Name 3 Yr Ratio 3 Yr % 5 Yr Ratio 5 Yr % 3 Yr 5 Yr Ratio Percentile % Tenure (yrs) $MM Intl3 Diversified Emerging Mkts Peer Group 0.51 50 0.07 50 23.51 30.16 1.60 50 Oppenheimer Developing Markets Y 0.72 93 0.26 96 21.68 27.95 1.00 93 5 24,503 Foreign Large Blend Peer Group 0.40 50 -0.16 50 20.76 24.14 1.30 50 Artisan International Inv 0.58 93 -0.01 92 21.92 25.71 1.22 57 17 8,973 World Stock Peer Group 0.63 50 -0.03 50 19.15 22.40 1.37 50 Oppenheimer Global Y 0.64 52 -0.01 61 19.87 22.94 0.90 90 8 8,169 Janus Global Select T 0.40 9 -0.01 63 22.80 27.25 0.96 86 5 2,271 Small-Cap5 Small Blend Peer Group 0.85 50 0.09 50 21.43 24.77 1.28 50 Royce Low Priced Stock Svc 0.64 6 0.12 67 24.04 26.81 1.51 30 11 3,543 Small Value Peer Group 0.86 50 0.09 50 21.29 24.95 1.36 50 Columbia Small Cap Value II Z 0.84 44 0.10 60 22.81 25.09 1.06 79 10 1,475 Mid-Cap8 Mid-Cap Growth Peer Group 0.92 50 0.14 50 19.52 23.05 1.25 50 Artisan Mid Cap Inv 1.07 82 0.29 92 19.49 23.78 1.34 41 15 6,327 Neuberger Berman Genesis Tr 1.01 72 0.24 79 16.49 19.68 1.14 60 18 11,638 Baron Growth Retail 1.02 74 0.16 54 17.18 21.23 1.32 42 18 5,944 Mid-Cap Value Peer Group 0.90 50 0.05 50 19.05 22.71 1.22 50 American Century Mid Cap Value A 1.11 89 0.15 85 15.02 18.69 1.26 43 8 2,295 Perkins Mid Cap Value T 0.80 17 0.13 79 15.45 18.17 1.00 73 14 12,830 Large-Cap Large Growth Peer Group 0.86 50 0.11 50 17.79 20.58 1.16 50 Fidelity Contrafund 1.10 94 0.21 80 14.91 17.83 0.81 85 22 81,266 Janus Twenty T 0.58 3 0.19 75 19.70 23.56 0.94 73 5 8,114 American Funds Growth Fund of Amer A 0.76 24 0.03 21 16.69 19.32 0.68 93 27 115,561 Large Blend Peer Group 0.89 50 0.03 50 16.61 19.61 1.10 50 Nuveen Tradewinds Value Opportunities I 0.72 15 0.20 97 15.91 20.87 0.95 63 0 1,136 American Funds Invmt Co of America A 0.82 35 0.00 38 15.82 17.81 0.61 85 20 56,513 Maxim Aggressive Profile I 0.78 25 -0.01 35 18.43 21.84 1.32 33 15 61 Large Value Peer Group 0.85 50 -0.04 50 16.97 19.99 1.10 50 Invesco Van Kampen Growth and Income Y 0.86 53 0.02 74 17.36 19.14 0.59 95 13 6,881 Asst All/Other Aggressive Allocation Peer Group 0.84 50 0.03 50 14.39 17.49 1.33 50 Maxim Moderately Aggressive Profile I 0.87 66 0.09 78 14.01 16.86 1.19 63 15 125 Moderate Allocation Peer Group 0.99 50 0.12 50 11.22 13.89 1.13 50 Fidelity Puritan 1.16 82 0.17 69 11.39 13.74 0.60 94 9 19,201 Janus Balanced T 0.93 31 0.40 98 10.96 11.42 0.84 79 7 8,475 Maxim Moderately Conservative Profile I 1.02 56 0.25 88 9.25 11.10 1.02 63 15 47 Maxim Moderate Profile I 0.91 28 0.17 68 11.66 13.82 1.11 53 15 139 Conservative Allocation Peer Group 1.30 50 0.30 50 7.62 9.62 1.15 50 Maxim Conservative Profile I 1.22 36 0.39 69 6.81 8.47 0.96 69 15 31 Bond9 High Yield Bond Peer Group 1.68 50 0.50 50 8.27 12.77 1.02 50 JPMorgan High Yield A Load Waived 1.65 42 0.56 74 8.13 11.73 1.16 35 14 11,567 Intermediate-Term Bond Peer Group 2.48 50 1.23 50 3.04 4.38 0.83 50 PIMCO Total Return Admin 2.26 29 1.83 94 3.57 4.33 0.71 64 25 263,384 Index Funds Dreyfus Intl Stock Index (idx) 0.36 35 -0.19 30 20.75 23.83 0.60 93 5 442 TIAA-CREF Equity Index Instl (idx) 1.00 80 0.08 79 16.79 19.91 0.07 99 8 3,720 Vanguard Total Bond Market Index Signal (idx) 2.30 32 1.62 85 2.87 3.63 0.10 98 20 110,916 DATA SOURCE: Morningstar 6/30/12 For Plan Sponsor Use Only 24 June 30, 2012 Fund Compliance Report Card

Annual Returns and Statistics: Gwinnett County Retirement Plans period ended 6/30/2012 Portfolio Construction Calendar Year Returns MPT Statistics ( 3 year) Turnover Number of % in top Fund Name 2011 2010 2009 2008 2007 Alpha Beta R2 Ratio Holdings 10 holdings Intl3 Diversified Emerging Mkts Peer Group -19.35 18.48 74.07 -54.31 36.86 Oppenheimer Developing Markets Y -17.85 27.39 82.10 -47.84 34.30 4.71 0.93 96 34 113 27% Foreign Large Blend Peer Group -13.69 9.99 31.08 -43.38 12.47 Artisan International Inv -7.26 5.91 39.77 -46.96 19.73 -1.01 1.16 93 70 81 35% World Stock Peer Group -7.94 12.83 33.44 -41.67 11.74 Oppenheimer Global Y -8.46 16.06 39.77 -40.78 6.34 -0.40 1.10 98 13 96 23% Janus Global Select T -17.84 20.01 54.75 -49.78 32.38 -14.09 2.05 89 138 45 50% Small-Cap5 Small Blend Peer Group -3.33 26.07 28.30 -34.60 -1.40 Royce Low Priced Stock Svc -14.58 31.49 53.58 -35.97 2.32 -8.14 1.21 94 22 176 17% Small Value Peer Group -4.34 25.47 30.92 -31.75 -5.65 Columbia Small Cap Value II Z -2.39 25.64 25.14 -33.63 2.96 -2.58 1.06 99 41 128 14% Mid-Cap8 Mid-Cap Growth Peer Group -4.00 25.59 40.60 -42.80 16.18 Artisan Mid Cap Inv -2.08 31.57 50.26 -44.13 21.20 1.59 0.99 95 63 73 28% Neuberger Berman Genesis Tr 4.60 21.38 26.25 -32.85 21.80 3.03 0.72 94 12 148 21% Baron Growth Retail 1.24 24.01 34.24 -39.18 6.59 2.78 0.75 95 14 101 25% Mid-Cap Value Peer Group -4.37 22.13 36.26 -36.77 2.07 American Century Mid Cap Value A -0.97 19.27 29.97 -24.68 -2.39 0.91 0.79 97 82 120 21% Perkins Mid Cap Value T -2.55 14.81 30.37 -27.33 7.43 -3.58 0.81 98 66 157 12% Large-Cap Large Growth Peer Group -1.97 15.82 35.03 -40.26 13.17 Fidelity Contrafund -0.14 16.93 29.23 -37.16 19.78 1.70 0.82 98 55 366 32% Janus Twenty T -8.19 6.97 43.27 -41.97 35.94 -7.39 1.07 95 56 37 58% American Funds Growth Fund of Amer A -4.89 12.28 34.48 -39.07 10.95 -4.81 1.00 98 34 424 22% Large Blend Peer Group -0.43 14.27 26.86 -37.36 5.56 Nuveen Tradewinds Value Opportunities I -5.20 24.13 51.14 -31.85 10.80 8.45 0.50 87 77 71 30% American Funds Invmt Co of America A -1.76 10.86 27.18 -34.73 5.94 -2.80 0.99 99 28 277 26% Maxim Aggressive Profile I -4.41 15.55 33.01 -40.06 7.16 -2.01 1.14 98 35 13 87% Large Value Peer Group -0.78 13.46 23.81 -36.37 2.84 Invesco Van Kampen Growth and Income Y -1.89 12.92 24.55 -31.97 2.76 -1.41 1.02 97 23 75 29% Asst All/Other Aggressive Allocation Peer Group -3.06 13.76 28.67 -34.58 7.44 Maxim Moderately Aggressive Profile I -2.17 13.15 28.57 -30.24 7.25 -0.25 0.87 99 35 18 71% Moderate Allocation Peer Group -0.30 11.98 23.99 -27.07 6.30 Fidelity Puritan 0.67 14.04 26.69 -29.16 6.17 3.02 0.79 98 154 1254 20% Janus Balanced T 1.31 7.75 24.28 -15.22 10.15 -1.10 1.02 96 94 336 18% Maxim Moderately Conservative Profile I -0.08 10.04 22.08 -18.11 6.41 1.12 0.64 99 35 17 82% Maxim Moderate Profile I -1.26 11.54 24.43 -23.29 7.13 0.18 0.81 99 32 18 76% Conservative Allocation Peer Group 1.69 10.26 20.94 -19.20 5.43 Maxim Conservative Profile I 1.06 8.73 20.39 -13.77 5.56 1.02 0.65 98 29 16 86% Bond9 High Yield Bond Peer Group 3.47 14.10 46.93 -24.72 2.05 JPMorgan High Yield A Load Waived 2.26 14.46 48.04 -22.67 1.92 -2.46 1.05 98 41 1084 10% Intermediate-Term Bond Peer Group 6.36 7.53 13.17 -2.91 5.58 PIMCO Total Return Admin 3.91 8.56 13.55 4.55 8.81 0.96 0.74 72 584 19651 20% Index Funds Dreyfus Intl Stock Index (idx) -12.51 7.31 30.15 -43.13 10.67 -0.74 1.03 99 6 1025 14% TIAA-CREF Equity Index Instl (idx) 0.99 16.88 28.34 -37.23 5.16 -0.05 1.00 100 11 2905 18% Vanguard Total Bond Market Index Signal (idx)7.69 6.54 6.04 5.15 7.02 -0.34 1.04 99 73 14831 7% DATA SOURCE: Morningstar 6/30/12 For Plan Sponsor Use Only 25 June 30, 2012 Fund Compliance Report Card

Index Performance period ending 6/30/2012 Total Total Total Total Return Return Return Annual Annual Annual Annual Annual Return Annlzd Annlzd Annlzd Return Return Return Return Return Index 1 Year 3 Year 5 Year 10 Year 2011 2010 2009 2008 2007 International3 MSCI EMF ID -18.22 7.18 -2.42 11.35 -20.41 16.36 74.50 -54.47 36.46 MSCI EAFE Ndtr_D -13.83 5.96 -6.10 5.14 -12.14 7.75 31.78 -43.38 11.17 MSCI World Ndtr_D -4.98 10.97 -2.96 5.18 -5.54 11.76 29.99 -40.71 9.04

Small-Cap5 Russell 2000 Growth -2.71 18.09 1.99 7.39 -2.91 29.09 34.47 -38.54 7.05 Russell 2000 -2.08 17.80 0.54 7.00 -4.18 26.85 27.17 -33.79 -1.57 Russell 2000 Value -1.44 17.43 -1.05 6.50 -5.50 24.50 20.58 -28.92 -9.78

Mid-Cap8 Russell Mid Cap Growth -2.99 19.01 1.90 8.47 -1.65 26.38 46.29 -44.32 11.43 Standard & Poor's Midcap 400 -2.33 19.36 2.55 8.21 -1.73 26.64 37.38 -36.23 7.98 Russell Mid Cap Value -0.37 19.92 -0.13 8.17 -1.38 24.75 34.21 -38.44 -1.42

Large-Cap Russell 1000 Growth 5.76 17.50 2.87 6.03 2.64 16.71 37.21 -38.44 11.81 Standard & Poor's 500 5.45 16.40 0.22 5.33 2.11 15.06 26.46 -37.00 5.49 Russell 1000 Value 3.01 15.80 -2.19 5.28 0.39 15.51 19.69 -36.85 -0.17

Bond9 BarCap US Aggregate Bond 7.47 6.93 6.79 5.63 7.84 6.54 5.93 5.24 6.97 BarCap US Credit 9.54 10.09 7.59 6.54 8.35 8.47 16.04 -3.08 5.11 BarCap US MBS 4.97 5.40 6.67 5.40 6.23 5.37 5.89 8.34 6.90 BarCap US Government Bond 8.32 5.65 6.64 5.36 9.02 5.52 -2.20 12.39 8.66 BarCap US Govt 1-3 Yr 0.86 1.69 3.40 3.14 1.56 2.40 1.41 6.66 7.10

MSCI EMF ID A capitalization-weighted index of stocks from 26 emerging markets that only includes issues that may be traded by foreign investors. The reported returns reflect equities priced in US dollars and do not include the effects of reinvested dividends. MSCI EAFE Ndtr_D Widely accepted as a benchmark for international stock performance, the EAFE Index is an aggregate of 21 individual country indexes that collectively represent many of the major markets of the world. MSCI World Ndtr_D Includes all 23 MSCI developed market countries. Ndtr_D indexes are calculated daily and take into account actual dividends reinvested daily before withholding taxes, but exclude special tax credits declared by companies. Russell 2000 Growth Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. Russell 2000 Consists of the smallest 2000 companies in the Russell 3000 Index, representing approximately 7% of the Russell 3000 total market capitalization. Russell 2000 Value Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. Russell Mid Cap Growth Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values. Standard & Poor's Midcap 400 Includes approximately 10% of the capitalization of U.S. equity securities. These are comprised of stocks in the middle capitalization range. Russell Mid Cap Value Market-weighted total return index that measures the performance of companies within the Russell Midcap Index having lower price-to-book ratios and lower forecasted growth values. Russell 1000 Growth Market-weighted total return index that measures the performance of companies within the Russell 1000 Index having higher price-to-book ratios and higher forecasted growth values. Standard & Poor's 500 A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. It measures the movement of the largest issues. Standard and Poor's chooses the member companies for the 500 based on market size, liquidity and industry group representation. Russell 1000 Value Market-weighted total return index that measures the performance of companies within the Russell 1000 Index having lower price-to-book ratios and lower forecasted growth values. BarCap US Aggregate Bond Composed of the Barclays Capital Govt/Credit Index, the Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. BarCap US Credit Listed for corporate bond-general and high-quality funds. This index tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC-registered, investment-grade corporate debt. BarCap US MBS Includes 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA). BarCap US Government Bond Listed for government-bond general and Treasury funds because it tracks the returns of U.S. Treasuries, agency bonds, and one- to three-year U.S. government obligations. This index is effective for tracking portfolios holding non-mortgage government securities. BarCap US Govt 1-3 Yr Comprised of both the Treasury Bond index (all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues) and the Agency Bond Index (all publicly issued debt of U.S. Government agencies and quasi-federal corporations and corporate-debt guaranteed by the U.S. Government). DATA SOURCE: Morningstar 6/30/12 For Plan Sponsor Use Only 26 June 30, 2012 Glossary

Gwinnett County For Plan Sponsor Use Only Glossary

12b-1 Fee The maximum annual charge deducted from fund assets to pay for distribution and marketing costs. Although usually set on a percentage basis, this amount will occasionally be a flat figure. Actively managed fund A fund manager buys and sells securities attempting to outperform the market as a whole. Adjustable Bonds A bond whose coupon is reset periodically—usually every six months to three years. At the reset date, the coupon is set equal to some base index, such as the one-year constant Treasury rate, plus a spread (or margin). When interest rates are falling, these bonds do better than an in-year Treasury, but when interest rates rise, they can lag Treasury yields.

Aggressive Growth (Objective) Funds that seek rapid growth of capital and that may invest in emerging market growth companies without specifying a market capitalization range. They often invest in small or emerging growth companies and are more likely than other funds to invest in IPO's or in companies with high price/earnings and price/book ratios. They may use such investment techniques as heavy sector concentrations, leveraging, and short-selling.

Alpha A measure of the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates the fund’s underperformance, given the expectations established by the fund’s beta.

Annual Returns Total returns calculated on a calendar-year basis. The annual return for a fund will be the same as its trailing 12-month total return only at year-end. Annualized Returns Returns for periods longer than one year are expressed as "annualized returns." This is equivalent to the compound rate of return which, over a certain period of time, would produce a fund’s total return over that same period. Asset Allocation (Objective) Income and capital appreciation are dual goals for funds in this objective. Managers often use a flexible combination of stocks, bonds, and cash. Managers may shift assets based on analysis of business-cycle trends.

Average Credit Quality Gives a snapshot of the portfolio’s overall credit quality. It is an average of each bond’s credit rating, adjusted for its relative weighting in the portfolio.

Average Effective Duration A measure of a fund's interest-rate sensitivity--the longer a fund's duration, the more sensitive the fund is to shifts in interest rates. Duration is determined by a formula that includes coupon rates and bond maturities. Small coupons tend to increase duration, while shorter maturities and higher coupons shorten duration. The relationship between funds with different durations is straightforward: A fund with a duration of 10 years is twice as volatile as a fund with a five-year duration.

Average Effective Maturity Used for taxable fixed-income funds only, this figure takes into consideration all mortgage prepayments, puts, and adjustable coupons; it does not, however, account for call provisions. The number listed is a weighted average of all the maturities of the bonds in the portfolio, computed by weighing each maturity date (the date the security comes due) by the market value of the security.

Balanced (Objective) Funds that seek both income and capital appreciation by investing in a generally fixed combination of stocks and bonds. These funds generally hold a minimum of 25% of their assets in fixed-income securities at all times.

Basis Point One-hundredth of a percentage point. For example, 50 basis points equals .50%. Beta A measure of a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. Beta is calculated by comparing a fund’s excess return over Treasury bills to the market's excess return over Treasury bills, so a beta of 1.10 shows that the fund has performed 10% better than its benchmark index in up markets and 10% worse in down markets, assuming all other factors remain constant. Conversely, a beta of 0.85 indicates that the fund’s excess return is expected to perform 15% worse than the market’s excess return during up markets and 15% better during down markets.

Bonds Interest-bearing certificates of indebtedness or IOUs. While bonds' rates of return remain fixed, bond prices change in relation to interest rates — when interest rates go up, bond prices go down, and vice versa. However, bond funds are variable funds and fluctuate with market conditions.

Bond funds Contrary to individual bonds, which offer a guaranteed rate of return, bond funds are variable funds and their returns may rise or fall depending on market conditions. Funds with 70% or more of their assets invested in bonds are classified as Bond Funds. Bond funds are divided into two main groups: Taxable Bond and Municipal Bond. Taxable Bond Fund categories include the following: Long-Term Government, Intermediate-Term Government, Short-Term Government, Long-Term Bond, Intermediate-Term Bond, Short-Term Bond, Ultrashort-Bond, International- Bond, High-Yield Bond, Emerging-Markets Bond and Multisector Bond. Breakpoint The investment amount at which investors in a load fund qualify for a discount on the fund’s sales charges.

G - 1 Glossary

Broker A firm or individual that acts as an intermediary between a buyer and a seller of securities, thereby earning a commission on the transaction. Unlike a broker-dealer, a broker does not own the securities that he or she sells. Callable Bond A bond that can be repaid early, at the issuer’s discretion. A callable bond allows an issuer to refinance debt at a lower rate, should interest rates drop below the coupon rate on the bond. If interest rates have dropped significantly since the date of issue, a callable bond will trade as though its maturity were shortened to the call date, which is the earliest time at which the bond can be redeemed.

Capital Appreciation The taxable income generated when a security is sold. The amount of appreciation is measured by subtracting the purchase price from the sale price. Capital Gains Taxable income generated only when a security is sold. This figure is calculated by subtracting the purchase price from the sale price. Under IRS regulations, funds must distribute 98% of their capital gains each year to avoid paying taxes on them. Shareholders pay taxes on these distributions, even if the gains are reinvested. Further capital gains can be generated by selling shares in a fund for more than the original purchase price.

Capitalization The total dollar value of all stock issued by a company. Small-cap stocks are issued by companies with market cap less than $1 billion. Mid-cap stocks are issued by medium-sized companies with market cap anywhere from $1 billion to $5 billion. Large-cap stocks include companies with market cap greater than $5 billion. CMOs Collateralized mortgage obligations are derivative securities, created by chopping up mortgage pass-throughs or whole loans into various slices in order to redistribute the cash flows (both principal and interest payments) from the underlying bonds. The CMO group, except for adjustable-rate mortgage funds, includes PACs (planned amortization class bonds), floating- and inverse- floating-rate CMOs, and accrual or Z-tranche bonds, among other varieties. Consumer Price Index (CPI) This index measures the changes in prices of goods and services purchased by urban households. Many pension and employment contracts are tied to changes in consumer prices, as protection against inflation and reduced purchasing power.

Corporate Bond--General (Objective) Funds that seek income by investing in fixed-income securities. Funds with this objective may hold a variety of issues, including but not limited to government bonds, high-quality corporates, mortgages, asset-backeds, bank loans and junk bonds.

Corporate Bond--High Quality (Objective) Offerings that seek income by investing at least 65% of their assets in corporate debt securities rated A or higher. They generally maintain average ratings of AA or better.

Corporate Bond--High Yield (Objective) Funds that seek income by generally investing 65% or more of their assets in bonds rated below BBB. The price of these issues is generally affected more by the condition of the issuing company (similar to a stock) than by the interest-rate fluctuation that usually causes bond prices to move up and down. Current income Results when a stock pays a dividend or a bond makes an interest payment. This is the value of your investment increased. With current income, you get a fairly stable pattern of income — which generally means reduced volatility. (Stock dividends must be declared, and are not predictable.)

Diversification Spreading your money over many different types of investments. Contrary to putting all your eggs in one basket, diversification can help protect your savings because when one investment is doing poorly, another may be doing well. This does not guarantee against loss of value in your investments. Dividends The distribution of earnings to stockholders by a company. Dividends are usually paid out from current earnings.

Domestic equity funds are placed in a category based on the style and size of the stocks they typically own. The style and size parameters are based on the divisions used in the investment style box: Value, Blend, or Growth style and Small, Medium, or Large median market capitalization.

Domestic Hybrid Category Used for funds with stock holdings of greater than 20% but less than 70% of the portfolio.

Dow Jones Industrial Average Computed by summing the prices of the stocks of 30 companies and then dividing that total by an adjusted value--one which has been adjusted over the years to account for the effects of stock splits on the prices of the 30 companies. Dividends are reinvested to reflect the actual performance of the underlying securities.

Duration A time measure of a bond’s interest-rate sensitivity, based on the weighted average of the time periods over which a bond’s cash flows accrue to the bondholder. Time periods are weighted by multiplying by the present value of its cash flow divided by the bond’s price. (A bond’s cash flows consist of coupon payments and repayment of capital). A bond’s duration will almost always be shorter than its maturity, with the exception of zero-coupon bonds, for which maturity and duration are equal. Equity-Income (Objective) Funds that are expected to pursue current income by investing at least 65% of their assets in dividend-paying equity securities.

G - 2 Glossary

Equity style box is a matrix that shows a fund’s investment style. Nine boxes represent two variables: the size of the companies invested in (small-cap, mid-cap, large-cap), and whether a fund is growth, value, or blend oriented. Morningstar recalculates the style of each fund on a monthly basis. The equity style box is shown below (areas are shaded according to risk — the darker the area, the higher the risk associated with the investment).

Value Blend Growth 123 Large

4 5 6 Medium 7 8 9 Small

Excess Returns A component found in Morningstar Return, Morningstar Risk, and the Morningstar Rating. This figure is calculated by subtracting the monthly returns of the three-month Treasury- bill from the monthly returns of the fund during the same time period. Exchange-Traded Funds (ETFs) are not mutual funds in the traditional sense; rather, they are hybrid instruments combining aspects of common stocks and mutual funds and offering many the benefits of both. ETFs are products that trade like stocks. They mimic stock indexes and are passively managed just like an index fund. Because ETFs trade throughout the day just like a stock, investors have the ability to choose the timing and know the price of the transaction.

Expense Ratio The percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV . Sales charges are not included in the expense ratio. FHLMC mortgages The Federal Home Loan Mortgage Commission, a federally-sponsored corporation that packages huge pools of individual mortgages and carves these pools up as mortgage- backed securities. This provides diversification, and consequently lower risk for mortgage investors. Although FHLMC securities are not directly backed by the federal government, it is implicitly recognized that the government would step in were there a likelihood that they would default. Fixed-income style box is similar to the equity style box. Fixed income style boxes represent a bond fund’s investment style. A fixed-income style would be the intersection of its duration (short, intermediate, and long) and the quality of the bonds selected for the portfolio (high, medium, low). Listed below is the matrix using the fixed-income style groupings (again, the darker the shading, the higher the risk).

Short Int. Long 123 High

4 5 6 Medium 7 8 9 Low

Flagship Fund Not to be confused with the Flagship Family of funds, a flagship fund is typically the oldest of a management company’s funds, or one that boasts the largest number of assets. Such funds often bear the management company’s name.

Foreign Stock Category An international fund having no more than 10% of stocks invested in the United States. Fund of Funds A fund that specializes in buying shares in other mutual funds rather than individual securities. Quite often this type of fund is not discernible from its name alone, but rather through prospectus wording (i.e.: the fund’s charter). Geometric Mean Return A compounded and annualized rate of return.

GNMA mortgages These are mortgage pass-through securities issued by the Government National Mortgage Association. These bonds are backed by the full faith and credit of the U.S. government. Government Bond--General (Objective) Offerings that pursue income by investing in a combination of mortgage-backed securities, Treasuries, and agency securities.

G - 3 Glossary

Government Bond--Mortgage (Objective) Funds that seek income by generally investing at least 65% of their assets in securities backed by mortgages, such as securities issued by the Government National Mortgage Association (GNMA), the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation (FHLMC). Government Bond--Treasury (Objective) Treasury funds that seek income by generally investing at least 80% of their assets in U.S. Treasury securities. Growth (Objective) Funds that pursue capital appreciation by investing primarily in equity securities. Current income, if considered at all, is a secondary concern.

Growth and Income (Objective) Growth of capital and current income are near-equal objectives for these funds. Investments are typically selected for both appreciation potential and dividend- paying ability. Guaranteed Certificate Fund All money deposited into a certificate during a "deposit period" earns a guaranteed rate of return, credited daily until maturity. Backed by the general assets of the certificate issuer. High-Yield Bond Category A fund with at least 65% or more of bond assets in bonds rated below BBB.

Index Fund A fund that tracks a particular index and attempts to match returns. While an index typically has a much larger portfolio than a mutual fund, the fund’s management may study the index’s movements to develop a representative sampling, and match sectors proportionately. Individual Retirement Account (IRA) A personal retirement plan. Taxes on earnings are deferred until money from the account is withdrawn. Industrial Cyclicals Sector Includes aerospace and aerospace industries, building supplies, industrial-building products, business equipment, chemicals, machinery (both light and industrial), metals fabrication (iron, steel, coal, and rare metals), paper and packaging, and photo equipment. Some examples of companies in this sector include Boeing, Canon, Caterpillar, Eastman Kodak, Georgia Pacific, Potash, and Sherwin-Williams.

Information Ratio The information ratio is a measure of the consistency of excess return. This value is determined by taking the annualized excess return over a benchmark (style benchmark by default) and dividing it by the standard deviation of excess return.

Institutional Fund Any fund that meets one of the following qualifications: a) has the word "institutional" in its name. b) has a minimum initial purchase of $100,000 or more. c) states in its prospectus that it is designed for institutional investors or those purchasing on a fiduciary basis. International Equity Funds with 40% or more of their equity holdings in foreign stocks (on average over three years) are placed in the international equity class. These categories include Europe, Japan, International Hybrid, Latin America, Diversified Pacific, Pacific ex. Japan, Specialty Precious Metals, Diversified Emerging Markets, World Stock, and Foreign Stock. Foreign investments involve special risks, including currency fluctuations and political developments. Lehman Brothers 1-3 Year Government Bond Comprised of both the Treasury Bond index (all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues) and the Agency Bond Index (all publicly issued debt of U.S. Government agencies and quasi-federal corporations and corporate-debt guaranteed by the U.S. Government). These bonds also must have maturities of one to three years. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Aggregate Index Composed of the Lehman Brothers Govt/Credit Index, the Mortgage-Backed Securities Index, and the Asset-Backed Securities Index. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Credit Listed for corporate bond-general and high-quality funds. This index tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC- registered, investment-grade corporate debt. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Government Bond Index Listed for government-bond general and Treasury funds. Because it tracks the returns of U.S. Treasuries, agency bonds, and one- to three-year U.S. government obligations, this index is effective for tracking portfolios holding non-mortgage government securities. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Govt/Credit Represents a combination of the Government and Corporate Bond indices. The returns published for the index are total returns, which include reinvestment of dividends. For more information, view the Lehman Brothers Web site or call 212-526-1000.

G - 4 Glossary

Lehman Brothers Intermediate Government Index Includes those indexes found in the LB Government Index which have a maturity of one to three years. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Intermediate Government/Corporate Index Includes both corporate (publicly-issued, fixed-rate, nonconvertible, investment grade, dollar-denominated, SEC-registered, corporate dept.) and government (Treasury Bond index, Agency Bond index, 1-3 Year Government index, and the 20+-Year treasury) indexes, including bonds with maturities up to ten years. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Intermediate Treasury This index includes treasury bonds with maturates of at least one year and up to 10 years with an outstanding par value of at least 100 million. They include fixed-rate debt issues, rated investment grade or higher by Moody’s Investor Services, Standard & Poor’s Corporation, or Fitch Investor’s Service (in that order). Treasuries include all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Long Credit Serves as a measure of all public-issued nonconvertible investment-grade corporate debts that have a maturity of 10 years or more. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Long Term Government Index Includes those indexes found in the LB Government index which have a maturity of 10 years or more. The returns published for the index are total returns, which include reinvestment of dividends.

Lehman Brothers Mortgage-Backed Securities Includes 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA). The returns published for the index are total returns, which include reinvestment of dividends.

Life Cycle These funds are geared toward investors of a certain age or with a specific time horizon for investing. Typically they are grouped together in sets (i.e. conservative, moderate, and aggressive portfolios).

Linear Scale Linear graphs are scaled so that equal vertical distances represent the same absolute dollar value change. A drop from $10,000 to $9,000, for example, is represented in the same way as a drop from $100,000 to $99,000.

Logarithmic Scale Used for graphs, a scale that reveals percentage changes. A given percentage move takes up the same amount of space as another move of equal percentage. A change from 100 to 200, for example, is presented in the same way as a change from 1000 to 2000. Maturity Short-term bonds mature (or come due) in less than four years. Intermediate-term bonds mature in four to ten years. Long-term bonds mature more than ten years from the date of purchase. The longer the term, the higher the risk and the rate of potential return. Management Fees The management fee is the percentage deducted from fund assets to pay an advisor or subadvisor. Often, as the fund's net assets grow, the percentage deducted for management fees decreases. For example, a particular fund may report a management fee of 0.40% on the first $500 million in assets, 0.35% on all assets between $500 million and $1 billion, and 0.30% on assets in excess of $1 billion. Thus, if the fund contains $1.5 billion in total net assets, the advisor scales back its management fees accordingly. Alternatively, the fund may compute the fee as a flat percentage of average net assets. The management fee might also come in the form of a group fee (G), a performance fee (P), or a gross income fee (I). Note: The management fee is just one (albeit a major) component of a fund's costs. The overall expense ratio is the most useful number for investors. Actual fees are also noted in this section. Market-Neutral Funds These are funds that attempt to eliminate the risks of the market by holding 50% of assets in long positions in stocks and 50% of assets in short positions. Funds in this group match the characteristics of their long and short portfolios, keeping factors such as price-to-earnings and industry exposure similar. Stock picking, rather than broad market moves, should drive a market-neutral fund's performance. Median Market Capitalization The median market capitalization of a fund's equity portfolio gives you a measure of the size of the companies in which the fund invests. It is the trimmed mean of the market capitalizations of the stocks in the fund’s portfolio.

Modern Portfolio Theory (MPT) Statistics Alpha, beta, and R-squared are modern-portfolio-theory measures of a fund’s relative risk, based on least-squares regression of a fund’s excess returns on the excess returns of a market index. Standard deviation is not considered an MPT statistic because it is not generated through the same formula or mathematical analysis as the other three statistics. Money market funds Best described as short-term versions of bonds. These relatively low-risk variable funds hold very short-term securities such as U.S. government securities, certificates of deposit, cash and cash equivalents. Investments in Money Market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although they seek to preserve the value of your investment at $1 per share, it is possible to lose money in Money Market funds.

G - 5 Glossary

Morley Stable Value Index A hypothetical portfolio comprised of a weighted blend of 50% five-year stable value contracts, 30% three-year stable value contracts and 20% 30-day prime commercial paper. The five-year component consists of 60 hypothetical five-year stable value contracts, one purchased at the prior month end's illustrative rate at the beginnning of each month for the prior 60 months. The three-year component consists of 36 hypothetical three-year stable value contracts, one purchased at the prior month end's illustrative rate at the beginnning of each month for the prior 36 months.

Morningstar was founded in 1984 to provide investors with useful information for making intelligent, informed investment decisions. The company’s first product, originally named the Mutual Fund Sourcebook, proved to be innovative in its ability to tap into an underserved market. Soon a demand grew for an even more in-depth and analytical publication, leading to the launch of Morningstar Mutual Funds in late 1986.

Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio statistics and compositions over the past three years). If the fund is new and has no portfolio, we estimate where it will fall before assigning a more permanent category. When necessary, we may change a category assignment based on current information. MSCI EAFE Ndtr_D Listed for foreign stock funds (EAFE refers to Europe, Australasia, and Far East). Widely accepted as a benchmark for international stock performance, the EAFE Index is an aggregate of 21 individual country indexes that collectively represent many of the major markets of the world. Ndtr_D indexes are calculated daily and take into account actual dividends reinvested daily before withholding taxes, but exclude special tax credits declared by companies. In addition, Ndtr_D indexes subtract withholding taxes retained at the source, for foreigners who do not benefit from a double taxation treaty. The returns published for the index are total returns, which include reinvestment of dividends.

MSCI Europe Ndtr_D Listed for Europe stock funds. This index measures the performance of stock markets in Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, Ireland, Portugal, and the United Kingdom. Total returns date back to December 1981. Ndtr_D indexes are calculated daily and take into account actual dividends reinvested daily before withholding taxes, but exclude special tax credits declared by companies. In addition, Ndtr_D indexes subtract withholding taxes retained at the source, for foreigners who do not benefit from a double taxation treaty.

MSCI Pacific Ndtr_D Formerly known as MS Pacific, this index is listed for Pacific stock funds and measures the performance of stock markets in Australia, Hong Kong, Japan, New Zealand, and Singapore, and Malaysia. Ndtr_D indexes are calculated daily and take into account actual dividends reinvested daily before withholding taxes, but exclude special tax credits declared by companies. In addition, Ndtr_D indexes subtract withholding taxes retained at the source, for foreigners who do not benefit from a double taxation treaty. The returns we publish for the index are total returns, which include reinvestment of dividends.

MSCI World Ndtr_D Includes all 23 MSCI developed market countries. Ndtr_D indexes are calculated daily and take into account actual dividends reinvested daily before withholding taxes, but exclude special tax credits declared by companies. In addition, Ndtr_D indexes subtract withholding taxes retained at the source, for foreigners who do not benefit from a double taxation treaty. Mutual fund An investment option that pools money from many shareholders and invests it in a group of stocks, bonds, or other securities. Also known as an open-end investment management company, mutual funds are securities required to be registered with the SEC. NASD (National Association of Securities Dealers) A self-regulatory organization for the securities industry with jurisdiction over certain broker-dealers. The NASD enforces broker-dealers’ compliance with securities regulations, including the requirement that they maintain sufficient levels of net operating capital. It also conducts market surveillance of the over-the-counter (OTC) securities market.

NAV Stands for net asset value, which is the fund’s share price. Funds compute this value by dividing the total net assets by the total number of shares. NASDAQ Composite Index Measures the performance of all issues listed in the NASDAQ Stock Market, except for rights, warrants, units, and convertible debentures. Net Assets The month-end net assets of the mutual fund, recorded in millions of dollars. Net-asset figures are useful in gauging a fund’s size, agility, and popularity. They help determine whether a small company fund, for example, can remain in its investment-objective category if its asset base reaches an ungainly size.

Ndtr_D: Noted for various Morgan Stanley indexes, Ndtr_D indicates that the index is listed in US dollars, with net dividends reinvested. Ndtr_D indexes take into account actual dividends before withholding taxes, but excludes special tax credits declared by companies. In addition, Ndtr_D indexes subtract withholding taxes retained at the source, for foreigners who do not benefit from a double taxation treaty.

NYSE (New York Stock Exchange Composite) Serves as a comprehensive measure of the market trend for the benefit of investors who are concerned with general stock market price movements. The index is a composite of all common stocks listed on the NYSE and four sub-groups--Industrial, Transportation, Utility, and Finance.

Options/Futures/Warrants Options and futures may be used speculatively, to leverage a portfolio, or cautiously, as a hedge against risk.

G - 6 Glossary

OTC (over the counter) A name for a security that is not listed on an exchange. The OTC is the major trading market for all US bonds, as well as many small- and large-capitalization stocks. Whereas non-OTC stocks trade on the floor of actual stock exchanges, OTC issues are traded via telephone and computer networks connecting dealers in stocks and bonds. The dealer may or may not be a member of a securities exchange, but he or she must be a member of the NASD.

Price/Book Ratio The weighted average of the price/book ratios of all the stocks in a fund’s portfolio. The P/B ratio of a company is calculated by dividing the market price of its stock by the company’s per-share book value. Stocks with negative book values are excluded from this calculation. In theory, a high P/B ratio indicates that the price of the stock exceeds the actual worth of the company's assets, while a low P/B ratio indicates that the stock is a bargain.

Price/Earnings Ratio The weighted average of the price/earnings ratios of the stocks in a fund’s portfolio. The P/E ratio of a stock is calculated by dividing the current price of the stock by its trailing 12 months’ earnings per share. In computing the average, Morningstar weights each portfolio holding by the percentage of equity assets it represents, so that larger positions have proportionately greater influence on the fund’s final P/E.

Price/Cash Flow This represents the weighted average of the price/cash-flow ratios of the stocks in a fund's portfolio. Price/cash-flow represents the amount an investor is willing to pay for a dollar generated from a particular company's operations. Price/cash-flow shows the ability of a business to generate cash and acts as a gauge of liquidity and solvency. Because accounting conventions differ among nations, reported earnings (and P/E ratios) may not be comparable across national boundaries. Price/cash-flow attempts to provide an internationally-standard measure of a firm's stock price relative to its financial performance.

Prospectus A fund's formal written statement, generally issued on an annual basis. In this statement the fund sets forth its proposed purposes and goals, and other facts (e.g.: history and investment objective) that an investor should know in order to make an informed decision. Prospectus Objective Indicates a particular fund’s investment goals, based on the wording in a fund's prospectus. R-Squared Reflects the percentage of a fund’s movements that can be explained by movements in its benchmark index. An R-squared of 100 indicates that all movements of a fund can be explained by movements in the index. Thus, index funds that invest only in S&P 500 stocks will have an R-squared very close to 100. Conversely, a low R-squared indicates that very few of the fund’s movements can be explained by movements in its benchmark index. An R-squared measure of 35, for example, means that only 35% of the fund’s movements can be explained by movements in the benchmark index.

Regression A mathematical tool used to study the way that two sets of numbers interact with each other. Regression measures how much of one number's changes might be caused by or linked to how much another number changes.

Returns Based Style Analysis In 1988, William F. Sharpe, Nobel Laureate and Professor of Finance at Stanford University, wrote an article for the Investment Analyst Review entitled "Determining a Fund's Effective Asset Mix". In this article, he demonstrated that a manager's style could be determined by analyzing portfolio returns, as opposed to holdings. This was done mathematically by comparing the manager's returns to the returns of a number of style indexes. This discovery revolutionized style and performance analysis and provided the basis for the StyleADVISOR suite of software.

Since its debut in 1993, StyleADVISOR has been the style analysis package of choice for the large institutional marketplace. Our client list has grown to include over 250 plan sponsors, consultants, and money managers. They use StyleADVISOR to determine, for themselves, using only monthly or quarterly returns, the style and consistency of managers and funds. They create custom style benchmarks, do performance, risk-return, upside downside market capture analyses, manager to peer universe comparisons, asset allocation, and much more. StyleADVISOR also enables them to perform manager searches, create custom universes, evaluate competitors, and monitor aggregate portfolios. Risk Basically there are four types of risk: 1) inflation risk means your money may not earn enough in the long run because as prices go up the value of your money goes down; 2) market risk means you could lose money because the price of a stock may go down; 3) credit risk means a company or organization that borrowed your money may not be able to pay it back; and 4) interest rate risk means you could lose money because as interest rates go up the value of bond investments goes down. Risk-Free Rate of Return Three-month T-bills are government-backed short-term investments considered to be risk-free and as good as cash because the maturity is only three months.

Risk/Return Graph The Manager Risk/Return Graph displays the risk/return characteristics of a manager and compares them to a benchmark, universe or other managers. It plots Return on the vertical axis and a Risk Statistic on the horizontal axis. The chart has crosshairs that provide a basis for comparison by dividing the graph into four quadrants. The crosshairs are centered at either the Market Benchmark, the Style Benchmark or the median of the Universe, depending on the options you select. A relatively aggressive manager, for example, is likely to fall in the Northeast corner relative to the crosshairs centered at the universe median, with both more risk and more return.

G - 7 Glossary

Russell 1000 Consists of the 1000 largest companies within the Russell 3000 index. Also known as the Market-Oriented Index, because it represents the group of stocks from which most active money managers choose. The returns published for the index are total returns, which include reinvestment of dividends.

Russell 1000 Growth Market-capitalization weighted index of those firms in the Russell 1000 with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.

Russell 1000 Value Market-capitalization weighted index of those firms in the Russell 1000 with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the investable US equity market.

Russell 2000 Consists of the smallest 2000 companies in the Russell 3000 Index, representing approximately 7% of the Russell 3000 total market capitalization. The returns published for the index are total returns, which include reinvestment of dividends.

Russell 2000 Growth Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Russell 2000 Value Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the of the investable US equity market.

Russell 3000 Composed of the 3000 largest U.S. companies by market capitalization, representing approximately 98% of the U.S. equity market. The returns published for the index are total returns, which include reinvestment of dividends. S&P 500/BARRA Growth Index A subset of the Standard & Poor's 500 Index®. Each year, all the stocks in the S&P 500® are classified as either growth or value. The stocks classified as growth make up the S&P 500/BARRA Growth Index. In general, growth companies tend to have high price-to-earnings (P/E) ratios, low dividend yields, and above-average earnings growth rates.

S&P 500/BARRA Value Index A subset of the Standard & Poor's 500 Index®. Each year, all the stocks in the S&P 500® are classified as either growth or value. The stocks classified as value make up the S&P 500/BARRA Value Index. In general, value companies tend to have low P/E ratios, high dividend yields, and below-average earnings growth rates.

S&P 400 MidCap Index The S&P 400 MidCap Index consists of 400 U.S. companies that have market capitalization from $1 billion to $5 billion. The index includes approximately 312 industrial companies, 10 transportation companies, 41 utilities, and 37 financial companies.

S&P 500 Index® Standard & Poor's 500 Index® is a benchmark for the United States stock market. It's a list of the 500 largest publicly traded companies, which include 400 industrial companies, 20 transportation companies, 40 utilities, and 40 financial companies.

S&P Small Cap 600 Index The Standard & Poor's SmallCap 600 Index consists of 600 U.S. companies that have market capitalization less than $1 billion. The index includes approximately 499 industrial companies, 18 transportation companies, 27 utilities, and 56 financial companies. Equity securities of companies with small market capitalization may be more volatile than securities of larger, more established companies.

SEC Yield A calculation based on a 30-day period ending on the last of the previous month. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. Share Classes Shares of the same fund that offer different shareholder rights and obligations, such as different fee and load charges. Common share classes are A (front-end load), B (deferred fees), C (no sales charge and a relatively high annual 12b-1 fee, such as 1.00%). Multi-class funds hold the same investment portfolio for all classes, and differ only in their surrounding fee structure.

Sharpe Ratio A risk-adjusted measure developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the fund’s historical risk-adjusted performance. The Sharpe ratio is calculated for the past 36-month period by dividing a fund’s annualized excess returns by its annualized standard deviation.

G - 8 Glossary

Socially Conscious Any fund that invests according to non-economic guidelines. Such funds may make investments based on such issues as environmental responsibility, human rights, or religious views. A socially conscious fund may take a pro-active stance by selectively investing in, for example, environmentally-friendly companies, or firms with good employee relations. This group also includes funds that avoid investing in companies involved in promoting alcohol, tobacco, or gambling, or in the defense industry.

Standard Deviation A statistical measurement of dispersion about an average, which, for a mutual fund, depicts how widely the returns varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given fund. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility. Stocks Ownership in a company. Stocks are sold by the company and then bought/sold among investors. Risks involved include the company not performing up to expectations or that the price of your stock will fall.

Style Benchmark The concept of the style benchmark was first introduced by Nobel Laureate William F. Sharpe in 1988 and referred to as the "Effective Asset Mix". A quadratic optimizer is used to find a combination of the selected indices that would best track (have the highest correlation to) a given return series. For example, if a domestic equity manager optimization found that a weighted composite of 20% Russell Large Value, 10% Russell Large Growth, 60% Russell Small Value, 5% Russell Small Growth, and 5% T-bills had a 92% R-squared to that manager's returns, it could be said that 92% of this manager's performance may be attributed to his "style". The remaining 8% is unexplained variance due to stock selection, etc.

Tax-deferred earnings You don't have to pay taxes on any earnings in your 401(k) until you withdraw your money. The money in a 401(k) can grow faster than with other types of savings plans, because the earnings you accumulate, if any, are also tax-deferred. Treynor Ratio The Treynor Ratio is a measure of performance per unit of market risk. It is the portfolio's excess return over the risk-free rate divided by the portfolio's beta to the selected benchmark. Also known as the Reward to Volatility Ratio.

Turnover Ratio The turnover rate of a fund is a decent proxy for how frequently a manager trades his or her portfolio. The inverse of a fund's turnover ratio is the average holding period for a security in that fund. If a fund consistently showed a 20% turnover ratio, for example, it would suggest that--on average--that fund holds a security for five years before selling it. A fund with a 200% turnover ratio pretty much changes its portfolio wholesale every six months.

Upside / Downside Market Capture Graph StyleADVISOR's Upside / Downside Market Capture graph displays the percentage of benchmark movement captured by a manager in both up and down markets. The graph plots the manager's upside capture ratio (vertical axis) against the downside capture ratio (horizontal axis). The capture ratio is the manager's return divided by the benchmark's return, or the percentage of the benchmark’s return that was “captured” by the manager. The Upside capture ratio is computed for periods when the market has a positive return. The Downside capture ratio is computed for periods when the market has a negative return. Variable funds Investments that fluctuate with market conditions. Unlike guaranteed investments, such as bonds or CDs, variable funds don't guarantee a specific rate of return. They do offer potential for higher earnings in return for higher degree of market risk. Wilshire 4500 Listed for small-company funds, measures the performance of all U.S. common equity securities excluding the stocks in the S&P 500. The returns published for the index are total returns, which include reinvestment of dividends. Wilshire 5000 Measures the performance of all U.S. common equity securities, and so serves as an index of all stock trades in the United States. The returns published for the index are total returns, which include reinvestment of dividends.

World Stock Category An international fund having more than 10% of stocks invested in the US. Also known as global funds. Foreign Investments involve special risks, including currency fluctuations and political developments. 1996-2001. Morningstar, Inc. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, Inc., (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, Inc., (4) are provided solely for information purposes and (5) are not warrented to be correct, complete or accurate. Morningstar, Inc. shall not be responsible for any trading decisions, damages or other losses resulting from or related to, this information, data, analyses or opinions or their use.

G - 9 July 1, 2011 to June 30, 2012 Executive Summary for Gwinnett County Executive Summary

1. 2nd Quarter 2012 Plan Highlights 1. Quarterly custom newsletter 2. SecureFoundation “go live” 3. Roth “go live” 4. Online Breeze presentations for: - 457(b) - 401(a) - Roth

2. Great West/Industry News - 408(b)2 plan sponsor fee disclosure

Plan Overview (in millions)

Total Assets (in Millions)

Plan assets were at $204.86 million as of June 30, 2012 Assets at June 30, 2012 $204.86

Less assets at June 30, 2011 $196.76

Plan assets grew by $8.10 million (4.1%) from July 1, 2011 Asset change for the year $8.10 to June 30, 2012 Asset Components (in Millions) Contributions were $20.86 million from July 1, 2011 to Contributions for the year $20.86 June 30, 20112 Less distributions for the year ($15.36)

As of June 30, 2012 there were 7,804 participants Net investment gain for the year $2.60

Asset change for the year $8.10 Assets

Asset Distribution by Plan Asset Contribution by Plan 401(a) 457(b) Combined 401(a) 457(b) Combined Active Participants: Contributing Participants:

6/30/2011 3,012 4,436 7,448 6/30/2011 2,482 3,194 5,676 6/30/2012 3,183 4,621 7,804 6/30/2012 2,575 3,298 5,873 Average Account Balance Average Annual per Participant: Contribution per Participant:

6/30/2011 $31,284 $23,113 $26,417 6/30/2011 $5,171 $2,376 $3,598 6/30/2012 $31,165 $22,867 $26,251 6/30/2012 $4,975 $2,441 $3,552 Average Number of Average Number of Investment Options per Investment Options per Participant: Participant:

6/30/2011 4.6 4.1 4.3 6/30/2011 6.3 5.4 5.8 6/30/2012 5.2 4.5 4.8 6/30/2012 8.5 7.1 7.7 Assets by Asset Class

$100.0

$74.98 $80.0

$60.0

$36.70 $40.0 $34.95

$15.73 $14.04 $20.0

Dollar Amount (in millions) (in Amount Dollar $10.43 $7.19 $7.06 $3.78 $-

Fixed Fund of Funds 2% 3% 3% 5% Large Cap 7% 37% 8% International Mid Cap Small Cap 17% 18% Bond Money Market Balanced Plan Participation

9,000 7,448 7,804 7,500 7,005 6,503 6,000 5,790

4,500

3,000

1,500

0 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 457(b) Plan 3,641 3,961 4,261 4,436 4,621 401(a) Plan 2,149 2,542 2,744 3,012 3,183 Plan Review For: Gwinnett County For the Period From July 1, 2011 to June 30, 2012 Table of Contents

Plan Overview

Section 1 Executive Summary Section 2 Plan Assets Section 3 Contributions Section 4 Participation and Distributions Section 5 Participant Services Section 6 Great-West Update

Securities, when offered, are offered through GWFS Equities, Inc., and/or other broker dealers.

Great-West Retirement Services® refers to products and services provided by Great-West Life & Annuity Insurance Company, FASCore, LLC (FASCore Administrators, LLC in California), First Great-West Life & Annuity Insurance Company, White Plains, New York and their subsidiaries and affiliates. Great-West Life & Annuity Insurance Company is not licensed to conduct business in New York. Insurance products and related services are sold in New York by its subsidiary, First Great-West Life & Annuity Insurance Company. Other products and services may be sold in New York by FASCore, LLC.

Managed account guidance and advice services are offered by Advised Assets Group, LLC (AAG) – a federally registered investment adviser. AAG, FASCore, LLC (FASCore Administrators in California), First Great-West Life & Annuity Insurance Company and GWFS Equities, Inc. are wholly owned subsidiaries of Great-West Life & Annuity Insurance Company. Representatives of GWFS Equities, Inc. are not registered investment advisers, and cannot offer financial, legal or tax advice. Please consult with your financial planner, attorney and/or tax adviser as needed.

The Power of Partnering and the Partnership logo are service marks of Great-West Life & Annuity Insurance Company. ©2008 Great-West Life & Annuity Insurance Company. All rights reserved. 2 Executive Summary

3 Plan Overview (in millions)

Total Assets u Assets at June 30, 2012 $204.86 u Less assets at June 30, 2011 $196.76 u Asset change for the year $8.10

Asset Components u Contributions for the year $20.86 u Less distributions for the year -$15.36 u Net investment gain for the year $2.60 u Asset change for the year $8.10

4 Plan Overview

u Plan assets were at $204.86 million as of June 30, 2012

u Plan assets grew by $8.10 million (4.1%) from July 1, 2011 to June 30, 2012

u Contributions were $20.86 million from July 1, 2011 to June 30, 2012

u From July 1, 2011 to June 30, 2012 there were 7,804 participants

5 Plan Assets

6 Asset Growth

$250.0

204.87 $200.0 196.76

160.46 139.33 $150.0 136.72

$100.0 Dollar Amount (in Millions) (in Amount Dollar $50.0

$0.0 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 457(b) Plan 81.84 74.44 86.20 102.53 105.67 401(a) Plan 57.49 62.28 74.26 94.23 99.20 7 Assets by Asset Class

$100.0

$74.98 $80.0

$60.0

$36.70 $40.0 $34.95

$15.73 $14.04 $20.0

Dollar Amount (in millions) (in Amount Dollar $10.43 $7.19 $7.06 $3.78 $-

Fixed Fund of Funds 2% 3% 3% 5% Large Cap 7% 37% 8% International Mid Cap Small Cap 17% 18% Bond Money Market Balanced

8 Percentage of Assets by Asset Class

Fund of Small Mid Large Money 401(a) Plan Funds Internat'l Cap Cap Cap Balanced Bond Market Fixed 7/1/2007 to 6/30/2008 19.1% 6.8% 5.3% 2.5% 9.9% 2.9% 3.2% 3.5% 46.8% 7/1/2008 to 6/30/2009 20.2% 6.0% 3.3% 2.6% 8.0% 2.2% 3.2% 3.1% 51.4% 7/1/2009 to 6/30/2010 23.5% 6.7% 4.1% 3.6% 8.8% 2.1% 3.9% 3.1% 44.2% 7/1/2010 to 6/30/2011 25.5% 9.5% 5.1% 6.6% 8.9% 1.7% 4.0% 4.1% 34.5% 7/1/2011 to 6/30/2012 26.8% 8.5% 4.5% 6.6% 9.8% 1.8% 3.8% 5.4% 32.7%

457(b) Plan Funds of Small Mid Large Money Funds Internat'l Cap Cap Cap Balanced Bond Market Fixed 7/1/2007 to 6/30/2008 7.4% 7.1% 6.3% 5.1% 34.1% 2.3% 2.3% 1.5% 33.9% 7/1/2008 to 6/30/2009 7.7% 6.4% 5.1% 5.0% 25.7% 2.0% 2.6% 1.9% 43.6% 7/1/2009 to 6/30/2010 8.7% 6.7% 5.6% 5.6% 24.1% 2.0% 3.5% 1.7% 42.0% 7/1/2010 to 6/30/2011 9.4% 7.6% 6.7% 7.2% 24.3% 1.8% 3.3% 1.9% 37.9% 7/1/2011 to 6/30/2012 9.6% 6.9% 5.7% 7.1% 23.9% 1.8% 3.2% 1.6% 40.3%

Fund of Small Mid Large Money Combined Funds Internat'l Cap Cap Cap Balanced Bond Market Fixed 7/1/2007 to 6/30/2008 12.2% 7.0% 5.9% 4.0% 24.1% 2.6% 2.7% 2.3% 39.2% 7/1/2008 to 6/30/2009 13.4% 6.2% 4.3% 3.9% 17.7% 2.1% 2.9% 2.5% 47.1% 7/1/2009 to 6/30/2010 15.6% 6.7% 4.9% 4.7% 17.1% 2.1% 3.7% 2.4% 43.0% 7/1/2010 to 6/30/2011 17.1% 8.5% 5.9% 6.9% 16.9% 1.7% 3.6% 3.0% 36.3% 7/1/2011 to 6/30/2012 17.9% 7.7% 5.1% 6.9% 17.1% 1.8% 3.5% 3.4% 36.6%

9 Assets by Investment Option

Maxim Aggressive Profile Portfolio $7.497 Maxim Moderately Aggressive Profile Port $9.583 Maxim Moderate Profile Portfolio $12.276 Maxim Moderately Conservative Profile $4.204 Maxim Conservative Profile Portfolio $3.145 Maxim SecureFoundation Lifetime 2030 G $0.000 Artisan International Fund $6.246 Dreyfus International Stock Index $3.312 Janus Global Select T $1.399 Oppenheimer Developing Markets Y $1.914 Oppenheimer Global Y $2.855 Baron Growth Fund $4.647 Columbia Small Cap Value Fund II - Z $0.529 Neuberger Berman Genesis Fund - Trust $3.206 Monumental Life Insurance $0.000 Royce Low Priced Stock Fund Service $2.053 Artisan Mid Cap Fund $6.142 American Century Mid Cap Value A $4.301 Nuveen Tradewinds Value Opp I $1.398 Perkins Mid Cap Value Fund T $2.198 American Funds Growth Fund A $9.499 American Funds Inv Co Amer A $1.248 BlackRock Equity Index - Collective F $4.787 Fidelity Contrafund $12.107 Janus Twenty Fund T $1.400 TIAA-CREF Institutional Equity Index $3.615 Invesco Van Kampen Growth and Income Y $2.291 Fidelity Puritan Fund $2.189 Janus Balanced Fund T $1.592 PIMCO Total Return Fund - Admin $2.930 Vanguard Total Bond Market Index Signal $3.081 JP Morgan High Yield Bond A $1.183 TD AMERITRADE SDB Money Market $0.907 TD AMERITRADE SDB Securities $6.152 Gwinnett Stable Value Fund $74.978 $0.0 $15.0 $30.0 $45.0 $60.0 $75.0 $90.0 Dollar Amount (in millions) 10 Asset Distribution by Fund – 401(a) Plan

Asset Class/Fund Name 6/30/2011 6/30/2012 Active Participants: Amount Pct Accts Amount Pct Accts 6/30/2008 2,149 Fund of Funds Maxim Aggressive Profile Portfolio 4,937,621 5.2% 321 4,903,934 4.9% 305 6/30/2009 2,542 Maxim Moderately Aggressive Profile Port 6,139,164 6.5% 351 6,798,792 6.9% 337 6/30/2010 2,744 Maxim Moderate Profile Portfolio 8,400,363 8.9% 576 9,614,165 9.7% 546 6/30/2011 3,012 Maxim Moderately Conservative Profile 2,827,138 3.0% 147 3,266,469 3.3% 139 Maxim Conservative Profile Portfolio 1,733,170 1.8% 114 1,973,732 2.0% 109 6/30/2012 3,183 24,037,457 25.5% 26,557,092 26.8% International Average Account Artisan International Fund 1,755,016 1.9% 768 3,452,292 3.5% 1,343 Balance per Participant: Dreyfus International Stock Index 1,911,624 2.0% 1,100 1,991,357 2.0% 1,321 Oppenheimer Developing Market 918,565 1.0% 867 0 0.0% - 6/30/2008 $26,752 Oppenheimer Global Fund A 3,348,864 3.6% 1,150 0 0.0% - 6/30/2009 $24,499 Janus Global Select T 994,481 1.1% 742 761,704 0.8% 115 6/30/2010 $27,064 Oppenheimer Developing Markets Y 0 0.0% - 848,618 0.9% 1,274 Oppenheimer Global Y 0 0.0% - 1,414,414 1.4% 162 6/30/2011 $31,284 8,928,550 9.5% 8,468,384 8.5% 6/30/2012 $31,165 Small-Cap Baron Grow th Fund 1,276,719 1.4% 127 2,476,866 2.5% 1,297 Columbia Small Cap Value Fund II - Z 1,108,913 1.2% 1,011 152,972 0.2% 34 Average Number of Neuberger Berman Genesis Fund - Trust 1,141,311 1.2% 118 1,044,205 1.1% 119 Investment Options Royce Low Priced Stock Fund Service 1,248,451 1.3% 128 776,631 0.8% 95 per Participant: 4,775,393 5.1% 4,450,674 4.5% 6/30/2008 2.7 M id-Cap Artisan Mid Cap Fund 1,959,590 2.1% 147 2,205,855 2.2% 1,341 6/30/2009 3.3 American Century Mid Cap Value A 0 0.0% - 2,983,988 3.0% 1,214 6/30/2010 4.0 Nuveen Tradew inds Value Opp I 713,004 0.8% 91 634,111 0.6% 234 6/30/2011 4.6 Perkins Mid Cap Value S 3,583,481 3.8% 1,065 0 0.0% - Perkins Mid Cap Value Fund T 0 0.0% - 690,441 0.7% 103 6/30/2012 5.2 6,256,075 6.6% 6,514,395 6.6% Large-Cap American Funds Grow th Fund A 1,297,148 1.4% 160 1,613,013 1.6% 1,172 American Funds Inv Co Amer A 426,381 0.5% 58 443,244 0.4% 52 BlackRock Equity Index - Collective F 2,182,461 2.3% 313 1,810,832 1.8% 279 Fidelity Contrafund 2,055,716 2.2% 172 2,172,546 2.2% 204 Invesco Van Kampen Grow th & Income A 685,440 0.7% 104 0 0.0% - Janus Tw enty Fund T 766,603 0.8% 98 684,920 0.7% 90 TIAA-CREF Institutional Equity Index 968,823 1.0% 823 2,351,927 2.4% 1,211 Invesco Van Kampen Grow th and Income Y 0 0.0% - 668,028 0.7% 74 8,382,572 8.9% 9,744,508 9.8% Balanced Fidelity Puritan Fund 497,319 0.5% 74 771,393 0.8% 214 Janus Balanced Fund T 1,132,823 1.2% 99 1,061,628 1.1% 94 1,630,142 1.7% 1,833,021 1.8% Bond PIMCO Total Return Fund - Admin 2,215,065 2.4% 1,076 1,388,955 1.4% 1,316 Vanguard Total Bond Market Index Signal 1,022,401 1.1% 593 1,823,447 1.8% 578 JP Morgan High Yield Bond A 550,398 0.6% 87 606,060 0.6% 89 3,787,865 4.0% 3,818,463 3.8% M oney M arket TD AMERITRADE SDB Money Market 584,881 0.6% 24 373,573 0.4% 38 TD AMERITRADE SDB Securities 3,319,289 3.5% 22 5,005,853 5.0% 35 3,904,170 4.1% 5,379,426 5.4% Fixed Gw innett Stable Value Fund 32,524,516 34.5% 1,255 32,431,077 32.7% 1,171 32,524,516 34.5% 32,431,077 32.7%

94,226,740 100.0% 99,197,041 100.0% 11 Asset Distribution by Fund – 457 Plan

Asset Class/Fund Name 6/30/2011 6/30/2012 Amount Pct Accts Amount Pct Accts Active Participants: Fund of Funds Maxim Aggressive Profile Portfolio 2,651,387 2.6% 447 2,593,401 2.5% 446 6/30/2008 3,641 Maxim Moderately Aggressive Profile Port 2,518,286 2.5% 422 2,784,140 2.6% 412 6/30/2009 3,961 Maxim Moderate Profile Portfolio 2,380,049 2.3% 398 2,661,352 2.5% 397 6/30/2010 4,261 Maxim Moderately Conservative Profile 955,859 0.9% 157 937,093 0.9% 149 Maxim Conservative Profile Portfolio 1,104,880 1.1% 136 1,171,524 1.1% 133 6/30/2011 4,436 Maxim SecureFoundation Lifetime 2030 G 0 0.0% - 25 0.0% 1 6/30/2012 4,621 9,610,461 9.4% 10,147,535 9.6% International Artisan International Fund 2,157,397 2.1% 895 2,793,902 2.6% 1,463 Average Account Dreyfus International Stock Index 1,345,078 1.3% 1,116 1,320,830 1.2% 1,349 Balance per Participant: Oppenheimer Developing Market 1,020,068 1.0% 888 0 0.0% - 6/30/2008 $22,478 Oppenheimer Global Fund A 2,426,545 2.4% 1,201 0 0.0% - Janus Global Select T 817,850 0.8% 744 637,206 0.6% 182 6/30/2009 $18,793 Oppenheimer Developing Markets Y 0 0.0% - 1,065,481 1.0% 1,294 6/30/2010 $20,229 Oppenheimer Global Y 0 0.0% - 1,440,585 1.4% 280 6/30/2011 $23,113 7,766,937 7.6% 7,258,004 6.9% Small-Cap 6/30/2012 $22,867 Baron Grow th Fund 1,926,704 1.9% 273 2,170,576 2.1% 1,367 Columbia Small Cap Value Fund II - Z 715,966 0.7% 964 375,660 0.4% 68 Average Number of Neuberger Berman Genesis Fund - Trust 2,261,110 2.2% 285 2,161,724 2.0% 273 Monumental Life Insurance 0 0.0% - 114 0.0% 3 Investment Options Royce Low Priced Stock Fund Service 1,946,656 1.9% 240 1,275,881 1.2% 206 per Participant: 6,850,436 6.7% 5,983,955 5.7% 6/30/2008 3.2 M id-Cap 6/30/2009 3.4 Artisan Mid Cap Fund 3,707,860 3.6% 481 3,936,382 3.7% 1,596 American Century Mid Cap Value A 0 0.0% - 1,316,702 1.2% 1,150 6/30/2010 3.8 Nuveen Tradew inds Value Opp I 842,750 0.8% 161 764,179 0.7% 319 6/30/2011 4.1 Perkins Mid Cap Value S 2,808,739 2.7% 1,171 0 0.0% - 6/30/2012 4.5 Perkins Mid Cap Value Fund T 0 0.0% - 1,507,839 1.4% 279 7,359,349 7.2% 7,525,102 7.1% Large-Cap American Funds Grow th Fund A 8,277,974 8.1% 920 7,885,770 7.5% 1,799 American Funds Inv Co Amer A 768,827 0.7% 139 804,824 0.8% 136 BlackRock Equity Index - Collective F 2,915,368 2.8% 586 2,976,308 2.8% 541 Fidelity Contrafund 9,923,020 9.7% 953 9,934,843 9.4% 924 Invesco Van Kampen Grow th & Income A 1,836,567 1.8% 335 0 0.0% - Janus Tw enty Fund T 649,927 0.6% 153 714,860 0.7% 153 TIAA-CREF Institutional Equity Index 525,339 0.5% 765 1,262,965 1.2% 1,165 Invesco Van Kampen Grow th and Income Y 0 0.0% - 1,623,307 1.5% 280 24,897,022 24.3% 25,202,877 23.9% Balanced Fidelity Puritan Fund 1,263,424 1.2% 179 1,417,676 1.3% 334 Janus Balanced Fund T 534,821 0.5% 118 529,979 0.5% 113 1,798,245 1.8% 1,947,655 1.8% Bond PIMCO Total Return Fund - Admin 1,823,064 1.8% 1,121 1,541,066 1.5% 1,357 Vanguard Total Bond Market Index Signal 1,091,225 1.1% 629 1,257,153 1.2% 625 JP Morgan High Yield Bond A 431,204 0.4% 153 576,727 0.5% 157 3,345,493 3.3% 3,374,946 3.2% M oney M arket TD AMERITRADE SDB Money Market 606,371 0.6% 33 533,790 0.5% 31 TD AMERITRADE SDB Securities 1,386,204 1.4% 30 1,145,908 1.1% 29 1,992,575 1.9% 1,679,698 1.6% Fixed Gw innett Stable Value Fund 38,909,745 37.9% 2,043 42,547,358 40.3% 1,990 38,909,745 37.9% 42,547,358 40.3%

102,530,263 100.0% 105,667,129 100.0% 12 Asset Distribution by Fund – Combined

Asset Class/Fund Name 6/30/2011 6/30/2012 Amount Pct Accts Amount Pct Accts Total Active Accounts: Fund of Funds 6/30/2008 5,790 Maxim Aggressive Profile Portfolio 7,589,008 3.9% 768 7,497,335 3.7% 751 6/30/2009 6,503 Maxim Moderately Aggressive Profile Port 8,657,450 4.4% 773 9,582,933 4.7% 749 Maxim Moderate Profile Portfolio 10,780,413 5.5% 974 12,275,518 6.0% 943 6/30/2010 7,005 Maxim Moderately Conservative Profile 3,782,996 1.9% 304 4,203,561 2.1% 288 6/30/2011 7,448 Maxim Conservative Profile Portfolio 2,838,050 1.4% 250 3,145,256 1.5% 242 6/30/2012 7,804 Maxim SecureFoundation Lifetime 2030 G 0 0.0% - 25 0.0% 1 33,647,918 17.1% 36,704,628 17.9% International Average Account Artisan International Fund 3,912,412 2.0% 1,663 6,246,193 3.0% 2,806 Balance per Account: Dreyfus International Stock Index 3,256,701 1.7% 2,216 3,312,186 1.6% 2,670 6/30/2008 $24,065 Oppenheimer Developing Market 1,938,633 1.0% 1,755 0 0.0% - Oppenheimer Global Fund A 5,775,409 2.9% 2,351 0 0.0% - 6/30/2009 $21,023 Janus Global Select T 1,812,331 0.9% 1,486 1,398,910 0.7% 297 6/30/2010 $22,907 Oppenheimer Developing Markets Y 0 0.0% - 1,914,099 0.9% 2,568 6/30/2011 $26,417 Oppenheimer Global Y 0 0.0% - 2,855,000 1.4% 442 16,695,487 8.5% 15,726,388 7.7% 6/30/2012 $26,251 Small-Cap Baron Grow th Fund 3,203,422 1.6% 400 4,647,443 2.3% 2,664 Average Number of Columbia Small Cap Value Fund II - Z 1,824,879 0.9% 1,975 528,631 0.3% 102 Neuberger Berman Genesis Fund - Trust 3,402,421 1.7% 403 3,205,929 1.6% 392 Investment Options Monumental Life Insurance 0 0.0% - 114 0.0% 3 per Account: Royce Low Priced Stock Fund Service 3,195,108 1.6% 368 2,052,512 1.0% 301 6/30/2008 3.0 11,625,829 5.9% 10,434,629 5.1% M id-Cap 6/30/2009 3.3 Artisan Mid Cap Fund 5,667,450 2.9% 628 6,142,237 3.0% 2,937 6/30/2010 3.8 American Century Mid Cap Value A 0 0.0% - 4,300,690 2.1% 2,364 6/30/2011 4.3 Nuveen Tradew inds Value Opp I 1,555,754 0.8% 252 1,398,290 0.7% 553 Perkins Mid Cap Value S 6,392,220 3.2% 2,236 0 0.0% - 6/30/2012 4.8 Perkins Mid Cap Value Fund T 0 0.0% - 2,198,280 1.1% 382 13,615,424 6.9% 14,039,497 6.9% Large-Cap American Funds Grow th Fund A 9,575,122 4.9% 1,080 9,498,783 4.6% 2,971 American Funds Inv Co Amer A 1,195,208 0.6% 197 1,248,068 0.6% 188 BlackRock Equity Index - Collective F 5,097,829 2.6% 899 4,787,140 2.3% 820 Fidelity Contrafund 11,978,736 6.1% 1,125 12,107,388 5.9% 1,128 Invesco Van Kampen Grow th & Income A 2,522,007 1.3% 439 0 0.0% - Janus Tw enty Fund T 1,416,530 0.7% 251 1,399,780 0.7% 243 TIAA-CREF Institutional Equity Index 1,494,162 0.8% 1,588 3,614,891 1.8% 2,376 Invesco Van Kampen Grow th and Income Y 0 0.0% - 2,291,334 1.1% 354 33,279,594 16.9% 34,947,385 17.1% Balanced Fidelity Puritan Fund 1,760,743 0.9% 253 2,189,069 1.1% 548 Janus Balanced Fund T 1,667,644 0.8% 217 1,591,607 0.8% 207 3,428,387 1.7% 3,780,676 1.8% Bond PIMCO Total Return Fund - Admin 4,038,129 2.1% 2,197 2,930,021 1.4% 2,673 Vanguard Total Bond Market Index Signal 2,113,626 1.1% 1,222 3,080,600 1.5% 1,203 JP Morgan High Yield Bond A 981,602 0.5% 240 1,182,787 0.6% 246 7,133,358 3.6% 7,193,408 3.5% M oney M arket TD AMERITRADE SDB Money Market 1,191,252 0.6% 57 907,362 0.4% 69 TD AMERITRADE SDB Securities 4,705,493 2.4% 52 6,151,761 3.0% 64 5,896,745 3.0% 7,059,124 3.4% Fixed Gw innett Stable Value Fund 71,434,261 36.3% 3,298 74,978,435 36.6% 3,161 71,434,261 36.3% 74,978,435 36.6% 13 196,757,003 100.0% 204,864,171 100.0% Contributions

14 Contribution History

$25.0 22.65 20.42 20.86 $20.0 19.80 17.47

$15.0

$10.0

Dollar Amount (in Millions) (in Amount Dollar $5.0

$0.0 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 457(b) Plan 8.14 7.83 10.58 7.59 8.05 401(a) Plan 9.33 11.97 12.07 12.83 12.81

15 Contributions by Asset Class

$6.40 $5.36 $4.91 $4.80 $3.13 $2.91 $3.20 $2.20 $1.46 $1.60 $0.59 $0.32

Dollar Amount (in millions)DollarAmount(in $-

Fixed 3% 1% 7% Funds of Funds 26% 11% International Large Cap 14% Mid Cap 23% 15% Small Cap Bond Balanced

16 Percentage of Contributions by Asset Class

401(a) Plan Fund of Small Mid Large Funds Internat'l Cap Cap Cap Balanced Bond Fixed 7/1/2007 to 6/30/2008 36.6% 7.7% 4.0% 2.7% 10.2% 2.2% 2.7% 33.9% 7/1/2008 to 6/30/2009 33.5% 8.7% 4.4% 3.4% 11.9% 1.9% 2.8% 33.4% 7/1/2009 to 6/30/2010 33.2% 11.6% 4.2% 5.4% 12.9% 2.0% 3.6% 27.2% 7/1/2010 to 6/30/2011 29.1% 13.1% 6.5% 8.9% 13.6% 1.4% 3.5% 23.9% 7/1/2011 to 6/30/2012 27.8% 16.0% 6.5% 10.9% 11.6% 1.5% 2.6% 23.0%

Fund of Small Mid Large 457(b) Plan Funds Internat'l Cap Cap Cap Balanced Bond Fixed 7/1/2007 to 6/30/2008 20.4% 9.3% 6.4% 6.4% 27.2% 3.6% 2.2% 24.5% 7/1/2008 to 6/30/2009 14.6% 9.3% 6.3% 5.9% 24.4% 1.8% 2.8% 34.8% 7/1/2009 to 6/30/2010 12.4% 9.0% 4.9% 5.9% 20.0% 1.7% 3.0% 43.0% 7/1/2010 to 6/30/2011 15.7% 11.0% 7.1% 8.4% 20.6% 1.5% 3.6% 32.0% 7/1/2011 to 6/30/2012 16.6% 13.3% 7.7% 9.9% 17.7% 1.5% 3.2% 30.0%

Fund of Small Mid Large Combined Funds Internat'l Cap Cap Cap Balanced Bond Fixed 7/1/2007 to 6/30/2008 29.0% 8.4% 5.1% 4.4% 18.1% 2.8% 2.5% 29.5% 7/1/2008 to 6/30/2009 26.0% 9.0% 5.1% 4.4% 16.8% 1.9% 2.8% 33.9% 7/1/2009 to 6/30/2010 23.5% 10.4% 4.5% 5.6% 16.2% 1.8% 3.3% 34.6% 7/1/2010 to 6/30/2011 24.1% 12.3% 6.7% 8.7% 16.2% 1.5% 3.5% 26.9% 7/1/2011 to 6/30/2012 23.5% 15.0% 7.0% 10.5% 13.9% 1.5% 2.8% 25.7%

17 Contribution by Investment Option

Maxim Aggressive Profile Portfolio $1.142 Maxim Moderately Aggressive Profile… $1.186 Maxim Moderate Profile Portfolio $1.925 Maxim Moderately Conservative Profile $0.371 Maxim Conservative Profile Portfolio $0.281 Maxim SecureFoundation Lifetime… $0.000 Artisan International Fund $0.808 Dreyfus International Stock Index $0.595 Oppenheimer Developing Market $0.262 Oppenheimer Global Fund A $0.878 Janus Global Select T $0.232 Baron Growth Fund $0.352 Columbia Small Cap Value Fund II - Z $0.328 Neuberger Berman Genesis Fund -… $0.276 Monumental Life Insurance $0.001 Royce Low Priced Stock Fund Service $0.503 Artisan Mid Cap Fund $0.423 American Century Mid Cap Value A $0.339 Nuveen Tradewinds Value Opp I $0.176 Perkins Mid Cap Value S $1.042 Perkins Mid Cap Value Fund T $0.215 American Funds Growth Fund A $0.591 American Funds Inv Co Amer A $0.112 BlackRock Equity Index - Collective F $0.320 Fidelity Contrafund $0.629 Invesco Van Kampen Growth & … $0.112 Janus Twenty Fund T $0.163 TIAA-CREF Institutional Equity Index $0.912 Invesco Van Kampen Growth and… $0.066 Fidelity Puritan Fund $0.183 Janus Balanced Fund T $0.134 PIMCO Total Return Fund - Admin $0.336 Vanguard Total Bond Market Index… $0.165 JP Morgan High Yield Bond A $0.093 Gwinnett Stable Value Fund $5.356 $0.00 $1.50 $3.00 $4.50 $6.00 Dollar Amount (in millions) 18 Contributions by Fund – 401(a) Plan

Asset Class/Fund Name 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Amount Pct Accts Amount Pct Accts Contributing Participants: Fund of Funds 6/30/2008 1,843 Maxim Aggressive Profile Portfolio 721,024 5.6% 267 717,637 5.6% 257 6/30/2009 2,125 Maxim Moderately Aggressive Profile Port 895,993 7.0% 275 862,138 6.7% 259 Maxim Moderate Profile Portfolio 1,605,883 12.5% 462 1,509,267 11.8% 428 6/30/2010 2,284 Maxim Moderately Conservative Profile 307,389 2.4% 121 273,778 2.1% 106 6/30/2011 2,482 Maxim Conservative Profile Portfolio 204,665 1.6% 96 203,528 1.6% 88 6/30/2012 2,575 3,734,953 29.1% 3,566,347 27.8% International Artisan International Fund 197,345 1.5% 547 523,188 4.1% 1,251 Average Contribution per Dreyfus International Stock Index 719,411 5.6% 1,067 400,003 3.1% 1,244 Participant: Oppenheimer Developing Market 227,097 1.8% 1,006 151,981 1.2% 1,059 Oppenheimer Global Fund A 393,858 3.1% 1,014 610,272 4.8% 1,125 6/30/2008 $5,061 Janus Global Select T 146,160 1.1% 775 150,582 1.2% 837 6/30/2009 $5,632 Oppenheimer Developing Markets Y 0 0.0% - 84,006 0.7% 1,125 Oppenheimer Global Y 0 0.0% - 133,300 1.0% 931 6/30/2010 $5,283 1,683,871 13.1% 2,053,332 16.0% 6/30/2011 $5,171 Small-Cap 6/30/2012 $4,975 Baron Grow th Fund 109,842 0.9% 89 195,378 1.5% 1,016 Columbia Small Cap Value Fund II - Z 265,559 2.1% 980 204,861 1.6% 1,063 Neuberger Berman Genesis Fund - Trust 120,602 0.9% 102 128,398 1.0% 102 Royce Low Priced Stock Fund Service 333,484 2.6% 946 310,049 2.4% 930 Average Number of Investment 829,488 6.5% 838,686 6.5% Options per Participant: M id-Cap Artisan Mid Cap Fund 174,558 1.4% 846 213,628 1.7% 1,173 6/30/2008 2.9 American Century Mid Cap Value A 0 0.0% - 252,009 2.0% 1,065 6/30/2009 4.2 Lord Abbett Mid Cap Stock A 177,850 1.4% 824 0 0.0% - Nuveen Tradew inds Value Opp I 84,078 0.7% 207 80,220 0.6% 276 6/30/2010 4.9 Perkins Mid Cap Value S 707,378 5.5% 1,001 712,253 5.6% 1,076 6/30/2011 6.3 Perkins Mid Cap Value Fund T 0 0.0% - 139,668 1.1% 892 6/30/2012 8.5 1,143,863 8.9% 1,397,777 10.9% Large-Cap American Funds Grow th Fund A 182,331 1.4% 129 192,484 1.5% 1,013 American Funds Inv Co Amer A 75,275 0.6% 50 58,005 0.5% 42 BlackRock Equity Index - Collective F 412,821 3.2% 973 155,356 1.2% 335 Fidelity Contrafund 200,187 1.6% 137 232,131 1.8% 167 Invesco Van Kampen Grow th & Income A 100,186 0.8% 207 50,434 0.4% 78 Janus Tw enty Fund T 109,249 0.9% 83 99,635 0.8% 76 Oppenheimer Capital Appreciation Fund 26,459 0.2% 35 0 0.0% - TIAA-CREF Institutional Equity Index 637,524 5.0% 986 662,026 5.2% 1,156 Invesco Van Kampen Grow th and Income Y 0 0.0% - 30,884 0.2% 55 1,744,032 13.6% 1,480,954 11.6% Balanced Fidelity Puritan Fund 84,953 0.7% 60 96,410 0.8% 317 Janus Balanced Fund T 96,016 0.7% 65 100,352 0.8% 68 180,968 1.4% 196,762 1.5% Bond MFS High Income Fund 15,234 0.1% 51 0 0.0% - PIMCO Total Return Fund - Admin 238,977 1.9% 1,036 196,235 1.5% 1,162 Vanguard Total Bond Market Index Signal 163,902 1.3% 159 86,955 0.7% 108 JP Morgan High Yield Bond A 29,568 0.2% 42 51,421 0.4% 45 447,681 3.5% 334,612 2.6% Fixed Gw innett Stable Value Fund 3,068,652 23.9% 899 2,941,749 23.0% 903 3,068,652 23.9% 2,941,749 23.0% 19 12,833,508 100.0% 12,810,220 100.0% Contributions by Fund – 457 Plan

Asset Class/Fund Name 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Amount Pct Accts Amount Pct Accts Fund of Funds Contributing Participants: Maxim Aggressive Profile Portfolio 388,919 5.1% 361 424,481 5.3% 357 6/30/2008 2,752 Maxim Moderately Aggressive Profile Port 349,239 4.6% 338 324,236 4.0% 318 Maxim Moderate Profile Portfolio 309,910 4.1% 307 415,980 5.2% 311 6/30/2009 3,007 Maxim Moderately Conservative Profile 78,282 1.0% 123 97,048 1.2% 112 6/30/2010 3,236 Maxim Conservative Profile Portfolio 68,359 0.9% 100 77,545 1.0% 95 6/30/2011 3,194 Maxim SecureFoundation Lifetime 2030 G 0 0.0% - 25 0.0% 1 1,194,708 15.7% 1,339,316 16.6% 6/30/2012 3,298 International Artisan International Fund 160,741 2.1% 599 284,422 3.5% 1,254 Average Annual Contributions Dreyfus International Stock Index 257,564 3.4% 1,005 194,782 2.4% 1,199 Oppenheimer Developing Market 146,284 1.9% 960 110,184 1.4% 1,034 per Participant: Oppenheimer Global Fund A 179,738 2.4% 997 267,940 3.3% 1,110 6/30/2008 $2,958 Janus Global Select T 91,728 1.2% 744 81,435 1.0% 771 Oppenheimer Developing Markets Y 0 0.0% - 67,817 0.8% 1,101 6/30/2009 $2,605 Oppenheimer Global Y 0 0.0% - 66,901 0.8% 1,017 6/30/2010 $3,269 836,055 11.0% 1,073,482 13.3% 6/30/2011 $2,376 Small-Cap Baron Grow th Fund 112,812 1.5% 182 156,586 1.9% 1,138 6/30/2012 $2,441 Columbia Small Cap Value Fund II - Z 103,473 1.4% 901 123,124 1.5% 985 Neuberger Berman Genesis Fund - Trust 136,331 1.8% 178 147,709 1.8% 167 Monumental Life Insurance 1,411 0.0% 5 1,024 0.0% 3 Royce Low Priced Stock Fund Service 185,029 2.4% 912 193,449 2.4% 903 Average Number of Investment 539,057 7.1% 621,892 7.7% Options per Participant: M id-Cap Artisan Mid Cap Fund 205,346 2.7% 976 209,459 2.6% 1,270 6/30/2008 3.4 American Century Mid Cap Value A 0 0.0% - 87,116 1.1% 976 6/30/2009 3.9 Lord Abbett Mid Cap Stock A 83,098 1.1% 828 0 0.0% - 6/30/2010 4.3 Nuveen Tradew inds Value Opp I 76,658 1.0% 245 96,014 1.2% 314 Perkins Mid Cap Value S 269,765 3.6% 990 329,744 4.1% 1,076 6/30/2011 5.4 Perkins Mid Cap Value Fund T 0 0.0% - 75,454 0.9% 993 6/30/2012 7.1 634,867 8.4% 797,788 9.9% Large-Cap American Funds Grow th Fund A 438,960 5.8% 521 398,735 5.0% 1,281 American Funds Inv Co Amer A 60,175 0.8% 101 54,459 0.7% 89 BlackRock Equity Index - Collective F 240,495 3.2% 1,007 164,381 2.0% 473 Fidelity Contrafund 379,468 5.0% 522 396,640 4.9% 522 Invesco Van Kampen Grow th & Income A 104,974 1.4% 313 61,530 0.8% 169 Janus Tw enty Fund T 78,555 1.0% 139 63,612 0.8% 113 Oppenheimer Capital Appreciation Fund 71,930 0.9% 151 0 0.0% - TIAA-CREF Institutional Equity Index 190,518 2.5% 883 249,908 3.1% 1,082 Invesco Van Kampen Grow th and Income Y 0 0.0% - 35,308 0.4% 137 1,565,075 20.6% 1,424,572 17.7% Balanced Fidelity Puritan Fund 73,041 1.0% 108 86,728 1.1% 363 Janus Balanced Fund T 44,338 0.6% 86 33,177 0.4% 71 117,380 1.5% 119,904 1.5% Bond MFS High Income Fund 9,894 0.1% 73 0 0.0% - PIMCO Total Return Fund - Admin 137,839 1.8% 955 139,496 1.7% 1,093 Vanguard Total Bond Market Index Signal 99,941 1.3% 184 77,850 1.0% 214 JP Morgan High Yield Bond A 28,719 0.4% 73 41,339 0.5% 78 276,392 3.6% 258,685 3.2% Fixed Gw innett Stable Value Fund 2,426,238 32.0% 1,273 2,414,392 30.0% 1,301 2,426,238 32.0% 2,414,392 30.0% 20 7,589,772 100.0% 8,050,031 100.0% Contributions by Fund – Combined

Asset Class/Fund Name 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Amount Pct Accts Amount Pct Accts Total Accounts Fund of Funds Receiving Contributions: Maxim Aggressive Profile Portfolio 1,109,943 5.4% 628 1,142,118 5.5% 614 Maxim Moderately Aggressive Profile Port 1,245,232 6.1% 613 1,186,374 5.7% 577 6/30/2008 4,595 Maxim Moderate Profile Portfolio 1,915,792 9.4% 769 1,925,247 9.2% 739 6/30/2009 5,132 Maxim Moderately Conservative Profile 385,671 1.9% 244 370,826 1.8% 218 Maxim Conservative Profile Portfolio 273,024 1.3% 196 281,073 1.3% 183 6/30/2010 5,520 Maxim SecureFoundation Lifetime 2030 G 0 0.0% - 25 0.0% 1 6/30/2011 5,676 4,929,661 24.1% 4,905,663 23.5% 6/30/2012 5,873 International Artisan International Fund 358,086 1.8% 1,146 807,610 3.9% 2,505 Dreyfus International Stock Index 976,975 4.8% 2,072 594,785 2.9% 2,443 Average Contributions per Oppenheimer Developing Market 373,381 1.8% 1,966 262,165 1.3% 2,093 Account: Oppenheimer Global Fund A 573,595 2.8% 2,011 878,212 4.2% 2,235 Janus Global Select T 237,888 1.2% 1,519 232,017 1.1% 1,608 6/30/2008 $3,801 Oppenheimer Developing Markets Y 0 0.0% - 151,823 0.7% 2,226 6/30/2009 $3,858 Oppenheimer Global Y 0 0.0% - 200,201 1.0% 1,948 6/30/2010 $4,102 2,519,926 12.3% 3,126,814 15.0% Small-Cap 6/30/2011 $3,598 Baron Grow th Fund 222,654 1.1% 271 351,965 1.7% 2,154 6/30/2012 $3,552 Columbia Small Cap Value Fund II - Z 369,033 1.8% 1,881 327,984 1.6% 2,048 Neuberger Berman Genesis Fund - Trust 256,933 1.3% 280 276,106 1.3% 269 Monumental Life Insurance 1,411 0.0% 5 1,024 0.0% 3 Average Number of Royce Low Priced Stock Fund Service 518,513 2.5% 1,858 503,499 2.4% 1,833 Investment Options per 1,368,544 6.7% 1,460,578 7.0% M id-Cap Account: Artisan Mid Cap Fund 379,904 1.9% 1,822 423,087 2.0% 2,443 6/30/2008 3.2 American Century Mid Cap Value A 0 0.0% - 339,125 1.6% 2,041 Lord Abbett Mid Cap Stock A 260,947 1.3% 1,652 0 0.0% - 6/30/2009 4.1 Nuveen Tradew inds Value Opp I 160,736 0.8% 452 176,234 0.8% 590 6/30/2010 4.6 Perkins Mid Cap Value S 977,142 4.8% 1,991 1,041,997 5.0% 2,152 6/30/2011 5.8 Perkins Mid Cap Value Fund T 0 0.0% - 215,122 1.0% 1,885 1,778,730 8.7% 2,195,565 10.5% 6/30/2012 7.7 Large-Cap American Funds Grow th Fund A 621,292 3.0% 650 591,219 2.8% 2,294 American Funds Inv Co Amer A 135,449 0.7% 151 112,464 0.5% 131 BlackRock Equity Index - Collective F 653,316 3.2% 1,980 319,737 1.5% 808 Fidelity Contrafund 579,655 2.8% 659 628,771 3.0% 689 Invesco Van Kampen Grow th & Income A 205,160 1.0% 520 111,963 0.5% 247 Janus Tw enty Fund T 187,805 0.9% 222 163,247 0.8% 189 Oppenheimer Capital Appreciation Fund 98,389 0.5% 186 0 0.0% - TIAA-CREF Institutional Equity Index 828,042 4.1% 1,869 911,934 4.4% 2,238 Invesco Van Kampen Grow th and Income Y 0 0.0% - 66,191 0.3% 192 3,309,108 16.2% 2,905,526 13.9% Balanced Fidelity Puritan Fund 157,994 0.8% 168 183,138 0.9% 680 Janus Balanced Fund T 140,354 0.7% 151 133,529 0.6% 139 298,348 1.5% 316,667 1.5% Bond MFS High Income Fund 25,128 0.1% 124 0 0.0% - PIMCO Total Return Fund - Admin 376,816 1.8% 1,991 335,731 1.6% 2,255 Vanguard Total Bond Market Index Signal 263,843 1.3% 343 164,806 0.8% 322 JP Morgan High Yield Bond A 58,286 0.3% 115 92,760 0.4% 123 724,073 3.5% 593,297 2.8% Fixed Gw innett Stable Value Fund 5,494,890 26.9% 2,172 5,356,141 25.7% 2,204 5,494,890 26.9% 5,356,141 25.7% 21 20,423,280 100.0% 20,860,251 100.0% Participation and Distributions

22 Plan Participation

9,000

7,804 7,448 7,500 7,005 6,503 6,000 5,790

4,500

3,000

1,500

0 6/30/2008 6/30/2009 6/30/2010 6/30/2011 6/30/2012 457(b) Plan 3,641 3,961 4,261 4,436 4,621 401(a) Plan 2,149 2,542 2,744 3,012 3,183

23 Benefit Payment Distribution – 401(a) Plan

7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Amount Pct Count Amount Pct Count Full Withdrawals Death 0 0.0% 0 1,534,491 18.8% 1 Disability 12,162 0.2% 2 0 0.0% 0 Retirement 1,071,471 21.0% 10 628,661 7.7% 9 Separation of Service 1,648,955 32.3% 133 2,558,535 31.3% 158 Total Full Withdrawals: 2,732,588 53.5% 145 4,721,686 57.8% 168

Partial Withdrawals Benefit Payment 0 0.0% 0 1,800 0.0% 1 In Service 0 0.0% 0 20,000 0.2% 1 In Service - Retirement Age 50,019 1.0% 1 30,056 0.4% 1 Minimum Distribution 366 0.0% 1 0 0.0% 0 Retirement 1,384,944 27.1% 16 2,182,375 26.7% 18 Separation of Service 423,889 8.3% 23 578,431 7.1% 21 Total Partial Withdrawals: 1,859,218 36.4% 41 2,812,662 34.4% 42

Periodic Payments Benefit Payment 0 0.0% 0 1,800 0.0% 1 Minimum Distribution 717 0.0% 1 4,180 0.1% 2 Retirement 516,050 10.1% 18 628,149 7.7% 18 Total Periodic Payments: 516,768 10.1% 19 634,128 7.8% 21

5,108,573 100.0% 205 8,168,477 100.0% 231

24 Benefit Payment Distribution – 457 Plan

7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Amount Pct Count Amount Pct Count Full Withdrawals Deminimus 457 0 0.0% 0 4,844 0.1% 1 Death 281,627 3.6% 5 25,493 0.4% 5 Disability 0 0.0% 0 834 0.0% 1 Retirement 2,089,870 26.8% 48 1,491,992 20.7% 59 Separation of Service 1,047,014 13.5% 112 621,790 8.6% 130 Total Full Withdrawals: 3,418,511 43.9% 165 2,144,954 29.8% 196

Partial Withdrawals INSERVROMT 141,221 1.8% 7 46,558 0.6% 7 Death 40,180 0.5% 2 13,014 0.2% 3 Disability 5,500 0.1% 1 5,800 0.1% 1 External Transfer 352 0.0% 1 0 0.0% 0 Hardship 123,640 1.6% 29 77,290 1.1% 26 Loan 2,002,925 25.7% 334 1,826,140 25.4% 299 Minimum Distribution 22,049 0.3% 7 849 0.0% 2 Retirement 1,107,705 14.2% 88 1,953,899 27.2% 85 Separation of Service 303,905 3.9% 20 319,089 4.4% 29 Service Credit 0 0.0% 0 80,150 1.1% 4 Total Partial Withdrawals: 3,747,477 48.1% 489 4,322,789 60.1% 456

Periodic Payments Benefit Payment 7,585 0.1% 2 9,285 0.1% 3 Minimum Distribution 52,273 0.7% 21 50,712 0.7% 24 Retirement 557,891 7.2% 70 662,649 9.2% 72 Total Periodic Payments: 617,750 7.9% 93 722,646 10.1% 99

7,783,737 100.0% 747 7,190,389 100.0% 751 25 Benefit Payment Distribution – Combined

7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Amount Pct Count Amount Pct Count Full Withdrawals Deminimus 457 0 0.0% 0 4,844 0.0% 1 Death 281,627 2.2% 5 1,559,984 10.2% 6 Disability 12,162 0.1% 2 834 0.0% 1 Retirement 3,161,342 24.5% 58 2,120,653 13.8% 68 Separation of Service 2,695,969 20.9% 245 3,180,325 20.7% 288 Total Full Withdrawals: 6,151,099 47.7% 310 6,866,640 44.7% 364

Partial Withdrawals INSERVROMT 141,221 1.1% 7 46,558 0.3% 7 Benefit Payment 0 0.0% 0 1,800 0.0% 1 Death 40,180 0.3% 2 13,014 0.1% 3 Disability 5,500 0.0% 1 5,800 0.0% 1 External Transfer 352 0.0% 1 0 0.0% 0 Hardship 123,640 1.0% 29 77,290 0.5% 26 In Service 0 0.0% 0 20,000 0.1% 1 In Service - Retirement Age 50,019 0.4% 1 30,056 0.2% 1 Loan 2,002,925 15.5% 334 1,826,140 11.9% 299 Minimum Distribution 22,416 0.2% 8 849 0.0% 2 Retirement 2,492,648 19.3% 104 4,136,274 26.9% 103 Separation of Service 727,794 5.6% 43 897,520 5.8% 50 Service Credit 0 0.0% 0 80,150 0.5% 4 Total Partial Withdrawals: 5,606,694 43.5% 530 7,135,451 46.5% 498

Periodic Payments Benefit Payment 7,585 0.1% 2 11,085 0.1% 4 Minimum Distribution 52,991 0.4% 22 54,892 0.4% 26 Retirement 1,073,942 8.3% 88 1,290,798 8.4% 90 Total Periodic Payments: 1,134,517 8.8% 112 1,356,774 8.8% 120

12,892,310 100.0% 952 15,358,866 100.0% 982 26 Participant Services

27 KeyTalk® Statistics – 401(a) Plan

Plan Totals 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Category Total Pct Total Pct Change Passcode 29 13.6% 354 71.8% Inq Acct Bal 14 6.5% 9 1.8% Inq Alloc 5 2.3% 9 1.8% Inq Dol Avg 1 0.5% - 0.0% Inq Loan 1 0.5% 114 23.1% Inq Tran Hist 8 3.7% 7 1.4% Order Passcode 90 42.1% - 0.0% Req Pin 66 30.8% - 0.0%

GRAND TOTAL 214 100.0% 493 100.0%

Total Calls 545 1,628 Rolled to Customer Service 454 1,236 Pct Transferred to CSR 83.3% 75.9%

28 KeyTalk® Statistics – 457 Plan

Plan Totals 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Category Total Pct Total Pct Change Passcode 18 40.0% 218 100.0% Inq Acct Bal 16 35.6% - 0.0% Inq Alloc 1 2.2% - 0.0% Inq Tran Hist 2 4.4% - 0.0% Req Pin 8 17.8% - 0.0%

GRAND TOTAL 45 100.0% 218 100.0%

Total Calls 77 6 Rolled to Customer Service 58 5 Pct Transferred to CSR 75.3% 83.3%

29 KeyTalk® Statistics – Combined

Plan Totals 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Category Total Pct Total Pct Change Passcode 47 18.1% 572 80.5% Inq Acct Bal 30 11.6% 9 1.3% Inq Alloc 6 2.3% 9 1.3% Inq Dol Avg 1 0.4% - 0.0% Inq Loan 1 0.4% 114 16.0% Inq Tran Hist 10 3.9% 7 1.0% Order Passcode 90 34.7% - 0.0% Req Pin 74 28.6% - 0.0%

GRAND TOTAL 259 100.0% 711 100.0%

Total Calls 622 1,634 Rolled to Customer Service 512 1,241 Pct Transferred to CSR 82.3% 75.9%

30 Internet Statistics – 401(a) Plan

Plan Totals 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Category Total Pct Total Pct Account And Certificates Overview 82 0.3% 2,147 6.1% Allocation And Asset Allocation 12 0.0% 1,207 3.4% Disbursement Summary 636 2.1% 896 2.5% Fund Overview And Prospectus 18 0.1% 169 0.5% Address Change 40 0.1% 61 0.2% Allocation 218 0.7% 204 0.6% Beneficiaries 170 0.5% 190 0.5% Change Passcode 1,113 3.6% 568 1.6% Disbursement Summary 636 2.1% 896 2.5% Elec Filing Cabinet 25 0.1% 66 0.2% Email Address 276 0.9% 319 0.9% Fund To Fund Trf 233 0.8% 297 0.8% Indic Data 66 0.2% 109 0.3% Inq Acct Bal 3,441 11.1% 3,179 9.0% Inq Acct Sum 1,405 4.5% 1,264 3.6% Inq Alloc 747 2.4% 628 1.8% Inq Asset Alloc 477 1.5% 413 1.2% Inq Asset Alloc Comparison 344 1.1% 305 0.9% Inq Bal Comparison 2,755 8.9% 1,556 4.4% Inq Bal History 2,170 7.0% 1,929 5.5% Inq Bene 926 3.0% 1,050 3.0% Inq Dfrl 56 0.2% 87 0.2% Inq Elec Stmts 639 2.1% 690 2.0% Inq Fund Overview 535 1.7% 676 1.9% Inq Fund Prospectus 57 0.2% 82 0.2% Inq Fund Returns 542 1.8% 501 1.4% Inq Funds Trnd 252 0.8% 364 1.0% Inq Loan Sum 26 0.1% 25 0.1% Inq Managed Account-Ibbotson 34 0.1% 44 0.1% Inq O/L Forms 588 1.9% 686 1.9% Inq Online Prospectus 136 0.4% 128 0.4% Inq Per Rate Return 6,001 19.4% 5,464 15.5% Inq Rates 101 0.3% 158 0.4% Inq Stmt On Demand 1,822 5.9% 1,701 4.8% Inq Tran Hist 1,759 5.7% 4,585 13.0% Inq Trfs - Comp/Pend/Perd 384 1.2% 360 1.0% Inq Uval 896 2.9% 720 2.0% Inquire Address 611 2.0% 624 1.8% Order Passcode 77 0.2% 140 0.4% Rebalancer 106 0.3% 99 0.3% Registration 378 1.2% 587 1.7% Transaction Downloads 96 0.3% 57 0.2% Trf From Sda 12 0.0% 10 0.0% Trf To Sda 59 0.2% 65 0.2%

GRAND TOTAL 30,957 100.0% 35,306 100.0% Number of Successful log ins 16,349 18,447 31 Internet Statistics – 457 Plan

Plan Totals 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Category Total Pct Total Pct Account And Certificates Overview 92 1.6% 2,389 21.6% Allocation And Asset Allocation 3 0.1% 2,243 20.3% Disbursement Summary 66 1.1% 63 0.6% Fund Overview And Prospectus - 0.0% 14 0.1% Address Change 1 0.0% - 0.0% Allocation 42 0.7% 43 0.4% Change Passcode 898 15.3% 398 3.6% Disbursement Summary 66 1.1% 63 0.6% Elec Filing Cabinet 3 0.1% 9 0.1% Email Address 7 0.1% 14 0.1% Fund To Fund Trf 60 1.0% 56 0.5% Indic Data 6 0.1% 6 0.1% Inq Acct Bal 1,130 19.2% 929 8.4% Inq Acct Sum 210 3.6% 148 1.3% Inq Alloc 67 1.1% 67 0.6% Inq Asset Alloc 50 0.8% 35 0.3% Inq Asset Alloc Comparison 18 0.3% 27 0.2% Inq Bal Comparison 398 6.8% 201 1.8% Inq Bal History 530 9.0% 386 3.5% Inq Bene 61 1.0% 52 0.5% Inq Dfrl 5 0.1% 11 0.1% Inq Elec Stmts 49 0.8% 49 0.4% Inq Fund Overview 10 0.2% 9 0.1% Inq Fund Prospectus 7 0.1% 3 0.0% Inq Fund Returns 32 0.5% 50 0.5% Inq Funds Trnd 5 0.1% 18 0.2% Inq Loan Sum 18 0.3% 9 0.1% Inq O/L Forms 78 1.3% 59 0.5% Inq Online Prospectus 7 0.1% 8 0.1% Inq Per Rate Return 822 14.0% 572 5.2% Inq Rates 11 0.2% 16 0.1% Inq Stmt On Demand 287 4.9% 156 1.4% Inq Tran Hist 303 5.1% 2,370 21.5% Inq Trfs - Comp/Pend/Perd 30 0.5% 32 0.3% Inq Uval 159 2.7% 105 1.0% Inquire Address 72 1.2% 46 0.4% Rebalancer 30 0.5% 27 0.2% Registration 203 3.4% 324 2.9% Transaction Downloads 49 0.8% 30 0.3% Trf To Sda 2 0.0% 1 0.0%

GRAND TOTAL 5,887 100.0% 11,038 100.0%

Number of Successful log ins 4,331 5,368

32 Internet Statistics – Combined

Plan Totals 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012 Category Total Pct Total Pct Account And Certificates Overview 174 0.5% 4,536 9.8% Allocation And Asset Allocation 15 0.0% 3,450 7.4% Disbursement Summary 702 1.9% 959 2.1% Fund Overview And Prospectus 18 0.0% 183 0.4% Address Change 41 0.1% 61 0.1% Allocation 260 0.7% 247 0.5% Beneficiaries 170 0.5% 190 0.4% Change Passcode 2,011 5.5% 966 2.1% Disbursement Summary 702 1.9% 959 2.1% Elec Filing Cabinet 28 0.1% 75 0.2% Email Address 283 0.8% 333 0.7% Fund To Fund Trf 293 0.8% 353 0.8% Indic Data 72 0.2% 115 0.2% Inq Acct Bal 4,571 12.4% 4,108 8.9% Inq Acct Sum 1,615 4.4% 1,412 3.0% Inq Alloc 814 2.2% 695 1.5% Inq Asset Alloc 527 1.4% 448 1.0% Inq Asset Alloc Comparison 362 1.0% 332 0.7% Inq Bal Comparison 3,153 8.6% 1,757 3.8% Inq Bal History 2,700 7.3% 2,315 5.0% Inq Bene 987 2.7% 1,102 2.4% Inq Dfrl 61 0.2% 98 0.2% Inq Elec Stmts 688 1.9% 739 1.6% Inq Fund Overview 545 1.5% 685 1.5% Inq Fund Prospectus 64 0.2% 85 0.2% Inq Fund Returns 574 1.6% 551 1.2% Inq Funds Trnd 257 0.7% 382 0.8% Inq Loan Sum 44 0.1% 34 0.1% Inq Managed Account-Ibbotson 34 0.1% 44 0.1% Inq O/L Forms 666 1.8% 745 1.6% Inq Online Prospectus 143 0.4% 136 0.3% Inq Per Rate Return 6,823 18.5% 6,036 13.0% Inq Rates 112 0.3% 174 0.4% Inq Stmt On Demand 2,109 5.7% 1,857 4.0% Inq Tran Hist 2,062 5.6% 6,955 15.0% Inq Trfs - Comp/Pend/Perd 414 1.1% 392 0.8% Inq Uval 1,055 2.9% 825 1.8% Inquire Address 683 1.9% 670 1.4% Order Passcode 77 0.2% 140 0.3% Rebalancer 136 0.4% 126 0.3% Registration 581 1.6% 911 2.0% Transaction Downloads 145 0.4% 87 0.2% Trf From Sda 12 0.0% 10 0.0% Trf To Sda 61 0.2% 66 0.1%

GRAND TOTAL 36,844 100.0% 46,344 100.0%

Number of Successful log ins 20,680 23,815 33 Great-West Update

34 Recordkeeping - Participant History

Great-West continues to grow as a force in the Record keeping marketplace. We do record keeping in the 457(b), 401(a/k), 403(b), 408 markets as well as in the Institutional and Defined Benefit plan markets. The table below shows our participant growth as a record keeper in these markets •12/31/2011 4,438,513 •12/31/2010 4,409,418 •12/31/2009 4,200,735 •12/31/2008 3,739,464 •12/31/2007 3,477,918 •12/31/2006 3,413,562 •12/31/2005 2,766,641 •12/31/2004 2,510,681 •12/31/2003 2,351,450 •12/31/2002 2,289,241

•12/31/2001 2,178,541 35 Recordkeeping Services

36 Government Relationships

Great-West has one of the strongest track records in the industry on renewing existing client relationships and adding new client relationships. Attached is a list of just a few of those recently renewed or new relationships we have formed. Renewed Relationships: •State of Oklahoma •Commonwealth of Massachusetts •State of Texas •City of Los Angeles •City of South San Francisco

New Relationships: •West Palm Beach, FL •City of Pasadena, CA

37 Great-West Current Ratings

• A.M. Best Company, Inc.: A+ (Superior; highest of 10 categories) for financial strength, operating performance, and business profile

• Fitch Ratings: AA (Very Strong; second highest of nine categories) for financial strength

• Moody’s Investors Service: Aa3 (Excellent; second highest of nine categories) for financial strength

• Standard & Poor’s: AA (Very Strong; second highest of nine categories) for financial strength

38 Five Year Financial Rating History

Fitch Moody’s S&P A.M. Best

2011 AA Aa3 AA A+

2010 AA Aa3 AA A+

2009 AA+ Aa3 AA A+

2008 AA+ Aa3 AA A+

2007 AA+ Aa3 AA A+

NEXT SECTION ab Gwinnett County Public Employees Retirement System - LCG July 13, 2012

Performance by Manager

Returns as of June 30, 2012 Q2 Q1 YTD 1 Year 3 Year 5 Year 7 Year 10 Year

TCW -6.88% 16.00% 8.02% 5.50% 18.20% 5.15% 5.93% 8.20%

Sands Capital Management -6.84% 24.51% 15.99% 10.31% 26.88% 8.60% 8.24% 9.60%

Bahl & Gaynor -3.83% 9.83% 5.61% 3.43% 14.65% 3.07% 5.04% 5.55%

Columbia -11.35% 20.24% 6.59% -7.18% 16.63% 4.43% 7.55% *10.26%

Rainier -5.32% 16.50% 10.64% 2.43% 15.66% 0.90% Not Provided 7.30%

Russell 1000 Growth -4.02% 14.69% 10.08% 5.76% 17.50% 2.87% 5.50% 6.03%

All are Gross Perfomance Returns

*Inception 3/312003

These unaudited performance returns have been provided by the money managers, which we believe to be reliable, but make no representations or warranties as to their accuracy or completeness. The UBS Institutional Consulting Group can not be held responsible for returns provided by these sources. Gwinnett County Employees Retirement System

June 8, 2012

Sands Capital Select Growth Large Cap Growth Equity Portfolio 2020 thth AnniversaryAnniversary Table of Contents

Tab I Investment Overview Page 2 Our Mission What Distinguishes Sands Capital? Firm Overview Research and Portfolio Management Team Investment Philosophy Investment Strategy Focus on Sustainable Growth Portfolio Construction Process Risk Management Process Research Process

Tab II Investment Results Page 13 Investment Results Annualized Investment Results Yearly Investment Results Attribution Summary

Tab III Portfolio Companies Page 19 Why We Own

Appendix Page 26 Investment Professionals Other Key Professionals Performance Disclosure

1 2020 thth AnniversaryAnniversary Our Mission

Sands Capital Management exists to add value and enhance the wealth of our clients with prudence over time.

2 SCMMISS1111 2020 thth AnniversaryAnniversary What Distinguishes Sands Capital?

1 Exclusive focus on owning leading growth businesses 5 Risk management from a business owner's perspective

2 Long-term investment horizon 6 Independence, size and stability

3 Deep, proprietary, business-focused global research 7 Continuity of investment process and personnel

4 Concentrated investment approach 8 Our only business is investment management

Sands Capital Management vs. Russell 1000® Growth Index: Cumulative Return, Inception thru 3/31/12

Annualized Since Inception 1000% 908.8% 12.2% SCM Select Growth (Gross) 800% 7.4% Russell 1000® Growth Index

600%

400% 322.2%

200%

-200% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Note: Inception date is February 29, 1992. The investment results are that of the Tax Exempt Institutional Equity Composite (TEIEC). They are gross of fees and do not reflect the deduction of investment advisory fees. The client’s return will be reduced by these fees in addition to any other expenses incurred in the management of the account. Please reference the Performance Disclosure Page at the end of presentation for additional disclosures. Past performance is not indicative of future results.

3 SGDIST0312 2020 thth AnniversaryAnniversary Firm Overview (As of 3/31/12) Total Assets Under Management Approximately $23.9 Billion as of 3/31/12

Taft/Hartley Superannuation Charitable 3% 2% 5% Corporate Firm Information Hospital 21% 6% • Independent and staff-owned High Net Worth 9% • Founded in 1992

Sovereign Public • Total staff of 78 employees Wealth 16% 2% • Located in Arlington, VA

Touchstone Education Funds 2% 19% Religious Sub Advisory 1% 17%

Corporate Education Endowments & Foundations General Mills American University National Gallery of Art General Motors Colby College Richard King Mellon Foundation Halliburton Penn State University Surdna Foundation

Public Sub Advisory Taft/Hartley Trades Illinois Municipal Retirement Fund GuideStone Funds Electrical Workers State of Minnesota MassMutual Financial Group Plumbers & Pipefitters State of North Carolina MLC (National Australia Bank) UAW

Note: Sands Capital Management selected institutional, fully discretionary, large capitalization equity accounts which are indicative of the various types and locales of its client base for inclusion in this Representative Client List. The client's consent to be included on this list should not be construed as approval or disapproval by these clients of Sands Capital Management or its advisory services. Wrap sponsor programs are included in the High Net Worth category above. In the client size breakdown, wrap sponsor programs are counted as one client each. As of 3/31/12, there were approximately 1,102 underlying accounts in wrap sponsor programs.

4 SGFIRM0312 2020 thth AnniversaryAnniversary Portfolio Management and Global Research Teams

Frank M. Sands, Sr., CFA Frank M. Sands, Jr., CFA Chairman, Founder Chief Investment Officer, Chief Executive Officer 43 Years Experience/Founded SCM in 1992 20 Years Experience/Joined Sands Capital Management in 2000 Select Growth Portfolio Management Team Frank M. Sands, Jr., CFA Thomas M. Ricketts, CFA T. Perry Williams, CFA Six Global Sectors Consumer Energy Financial Services Industrials Life Science Technology Global Sector Heads

T. Perry Williams, CFA A. Michael Sramek, CFA Sunil H. Thakor, CFA David E. Levanson, CFA Thomas M. Ricketts, CFA John K. Freeman Sr. Research Analyst, Sr. Research Analyst, Sr. Research Analyst, Sr. Research Analyst, Sr. Research Analyst, Sr. Research Analyst, Sr. Portfolio Manager, Sr. Portfolio Manager, Sr. Portfolio Manager Sr. Portfolio Manager, Sr. Portfolio Manager, Sr. Portfolio Manager Executive Managing Director Managing Director 12 years experience Executive Managing Director Executive Managing Director 9 years experience 17 years experience 15 years experience Joined SCM in 2004 22 years experience 18 years experience Joined SCM in 2006 Joined SCM in 2004 Joined SCM in 2001 Re-joined SCM in 2002 Joined SCM in 1994

Research Analysts

Davis M. Catlin, CFA Matthew W. Luneburg, CFA Michael F. Raab, CFA Neil Kansari Wesley A. Johnston, CFA Thomas H. Trentman, CFA Research Analyst Research Analyst Research Analyst Research Analyst Research Analyst Research Analyst Joined SCM in 2007 Joined SCM in 2006 Joined SCM in 2007 Joined SCM in 2008 Joined SCM in 2004 Joined SCM in 2005

Ashraf A. Haque Barron Martin Brian A. Christiansen, CFA Michael J. Clarke Research Analyst Research Analyst Research Analyst Research Analyst Joined SCM in 2008 Joined SCM in 2008 Joined SCM in 2006 Joined SCM in 2011

Michael P. Rubin, MD, CFA Research Analyst Joined SCM in 2008

Research Associates

Jonathan D. Farber Brian X. Keegan Glenn A. Bickley Cecil Y. Ang Ravi I. Dayabhai Emerson F. Bluhm Research Associate Research Associate Research Associate Research Associate Research Associate Sr. Research Associate

Degelis E. Tufts Michael J. Ginder Sr. Research Associate Research Associate 5 SGPMT0512 2020 thth AnniversaryAnniversary Investment Philosophy

“As long-term investors, we buy leading growth businesses…we do not trade stocks.”

- Frank M. Sands, Sr. Founder

We believe that over time common stock prices will reflect the earnings power and growth of the underlying businesses. To be successful we must:

Identify the few truly exceptional businesses with sustainable growth.

Construct a concentrated “best ideas” portfolio.

Accept short-term market volatility in exchange for long-term wealth creation.

6 SCMPHIL0111 2020 thth AnniversaryAnniversary Investment Strategy

The cornerstone of our investment strategy is our proprietary global research: fundamental, bottom-up, and business-focused.

We seek to identify leading growth businesses that meet the following criteria:

1. Sustainable above-average earnings growth 2. Leadership position in a promising business space 3. Significant competitive advantages/unique business franchise 4. Clear mission and value-added focus 5. Financial strength 6. Rational valuation relative to the market and business prospects

7 SCMSTRAT0111 2020 thth AnniversaryAnniversary Focus on Sustainable Growth Over Life Cycle

Duration Growers • Most established Earnings • Highly visible long-term Classic Growers opportunities Maturity • Established leaders • Strong competitive Hyper Growers advantage • Global business • Emerging innovator opportunities • Passed inflection point • Early leadership

Inflection Point

Time

Note: The companies illustrated represent a sub-set of the portfolio holdings. There is no assurance that any security listed will remain in the portfolio. These examples were selected based on their sectors and SCM’s assessment of where each company is within the lifecycle. This assessment of each business is based on SCM’s estimate of its long-term market opportunity, the degree to which that market opportunity has been penetrated, the company growth rate, and the market growth rate, among other factors.

8 SGLIFE1211 2020 thth AnniversaryAnniversary Portfolio Construction Process

All investment decisions are driven by our six investment criteria. This is our primary source of value-added.

Portfolio Conviction weighted relative Weighting to average weight.

The primary focus of our research effort is determining whether or not Our Six Key to own a business. Investment Criteria

9 SCMPPROC0111 2020 thth AnniversaryAnniversary Risk Management Process — A Business Owner’s Perspective

The primary risk we seek to manage is the risk of a permanent loss of capital resulting from a negative business or investment outcome. Risk management is integrated throughout our entire research and portfolio construction process.

Key Sources of Risk Principles-Based Risk Management Process

• Six investment criteria Business Risk • Deep proprietary research • Portfolio construction – strategic weights

• Expected return ranges Market Risk • Portfolio construction – tactical weights

• “Headwinds/Tailwinds” framework Macro Risk • Focus on long-term secular forces not short-term economic forecasts

• Diversification by geography, industry, etc. • Monitor overlapping growth drivers Portfolio-Level Risk • Awareness of implied macro “bets” • Liquidity

Note: These are general risk management principles the implementation of which is subject to the discretion of the Sands Capital Management and clients’ specific portfolio mandates. No assurance can be given that the investment objective of the portfolio will be achieved. Past performance is not an indication of future results.

10 SCMRISK0111 2020 thth AnniversaryAnniversary Research Process

The purpose of this process is to identify leading growth businesses we can own for many years.

IDEA A Select GENERATION Portfolio of Our Best Ideas PRELIMINARY Leading growth REVIEW businesses RESEARCH & in key growth sectors. ANALYSIS DISCUSSION & DEBATE

11 SCMRPROC0111 y r a s r e v i n n SGRPROC0512 A h th Anniversary t 0 20 2 on vs. underlying underlying business on vs. A Select Key Drivers Key Best Ideas Sell Discipline Portfolio of Our • Significant change in fundamentals •case investment original in Flaw • Meaningful overvaluati • opportunity new a Funding source for • Risk management decision

DEBATE

DISCUSSION & analyst presents analyst presents and investment case the recommendation to PM Team purchase, decision to idea, or on new pass where areas identify is additional research needed by the PM Team Evaluation Activities Activities Evaluation • Sector team or lead • Outcome may be a • Final decision made 12

ANALYSIS

RESEARCH & RESEARCH to expand initial company evaluation of suppliers, competitors, customers and/or experts industry management markets, visit stores, test products, etc. research and Street and financial model scenario analysis industry business / risks company-specific “sell case” Research Activities • “Deep Dive” Conduct • vendors, Interview • Meet company • Travel to relevant •filings public Review • Build proprietary •for metrics key Identify •evaluate and Identify • Build hypothetical identify great businesses we can identify

REVIEW

PRELIMINARY to evaluate company to evaluate company key against 6 investment criteria and research objectives Team and establish priorities opportunities” list (~15-20 companies at any given time) Review Activities • initial review Conduct • questions key Identify • Review with PM • Add to “new

IDEA

GENERATION expertise landscape analysis markets key periodicals Sourcing Activities Sourcing Activities • In-house sector • Competitive •to Extensive travel •trade & Industry • conferences Industry • mgmt. Company • filings Company • Quantitative screens own for many own for many years. The purpose of this process is to Research Process Research 2020 thth AnniversaryAnniversary Investment Results Tax Exempt Institutional Equity Composite Investment Results — Gross of Fees As of May 31, 2012

® Value Added Total Russell 1000 Relative to R1000G (bps) Cumulative Value Added Account Growth Relative to R1000G (bps) Quarter Year 2002 -26.91% -27.88% 97 97

2003 36.73% 29.75% 698 636

2004 21.03% 6.30% 1473 2149

2005 10.99% 5.26% 573 2955

2006 -5.23% 9.07% -1430 1302

2007 19.72% 11.81% 791 2461

2008 -48.37% -38.44% -993 2

2009 72.23% 37.21% 3502 2756

2010 27.22% 16.71% 1051 4641

2011 3.02% 2.64% 38 4828

2012 1st Quarter 24.51% 14.69% 982 7280

2nd Quarter (As of 5/31/12)* -7.98% -6.56% -142 6489

2012 YTD (As of 5/31/12)* 14.58% 7.17% 741 6489

Cumulative 10 Years (5/31/02 - 5/31/12)* 133.46% 58.62% 7484

Annualized 10 Years (Through 5/31/12)* 8.85% 4.72% 413

* Preliminary results. Note: The above investment results are gross of fees and do not reflect the deduction of investment advisory fees. The client’s return will be reduced by these fees in addition to any other expenses incurred in the management of the account. Please reference the Performance Disclosure Page at the end of this presentation for additional disclosures. Past performance is not indicative of future results.

13 SGTEIEC0512 2020 thth AnniversaryAnniversary ® Annualized Investment Results vs. The Russell 1000 Growth (As of 3/31/12)

Sands Capital Select Growth (Gross of Fees) Russell 1000 Growth Index 38.8%

25.3% 22.6%

12.2% 11.0% 11.1% 8.5% 7.4% 5.1% 4.3%

1 Year 3 Years 5 Years 10 Years Since Inception

Note: Inception date is February 29, 1992. The above investment results are gross of fees and do not reflect the deduction of investment advisory fees. The client’s return will be reduced by these fees in addition to any other expenses incurred in the management of the account. Please reference the Performance Disclosure Page at the end of this presentation for additional disclosures. Past performance is not indicative of future results.

14 SGINVR0312 2020 thth AnniversaryAnniversary ® Yearly Investment Results vs. The Russell 1000 Growth (As of 3/31/12)

Sands Capital Select Growth (Gross of Fees) Russell 1000 Growth Index 72.2 Alpha 54.9 48.3 43.1 38.9 38.7 36.7 37.2 37.2 33.2 30.9 30.5 29.8 27.2 23.1 24.5 21.0 19.7 16.7 14.7 11.0 11.8 7.4 9.1 5.8 6.3 5.3 2.9 3.8 2.7 3.0 2.6 0.2

-5.2

-15.4 -17.8 -20.4 -22.4 -26.9 -27.9

-38.4

-48.4

35.0

15.8 16.2 15.1 14.7 10.5 9.8 6.9 7.9 5.9 4.6 5.0 5.7 1.1 0.4 1.0 0.4

-1.6 -2.7 -10.0 -14.3 1992* 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

* Inception date is February 29, 1992 Note: The above investment results are gross of fees and do not reflect the deduction of investment advisory fees. The client’s return will be reduced by these fees in addition to any other expenses incurred in the management of the account. Please reference the Performance presentation for additional disclosures. Past performance is not indicative of future results

15 SGINVR0312 2020 thth AnniversaryAnniversary Attribution Summary

P O R T F O L I O P R O F I L E S U M M A R Y MARCH 31, 2012 TAX-EXEMPT INSTITUTIONAL EQUITY COMPOSITE (EQCOMP) ® Russell 1000 Growth (R1000G) Base Currency: USD

C O M P O S I T I O N C H A R A C T E R I S T I C S T O P 5 P O R T F O L I O H O L D I N G S Summary EQCOMP R1000G EQCOMP R1000G Company Name % of Portfolio No. of Securities 28 585 EPS Growth - Forecast 3-5 Year 26.1 14.1 Apple Inc. 8.9 Assets ($) 11,173.3 M 7.3 T Weighted Average Market Cap ($B) 99.5 119.5 Visa Inc. 7.5 Equity (%) 99.1 100.0 Median Market Cap ($B) 21.8 6.5 salesforce.com inc. 6.5 Cash (%) 0.9 0.0 P/E - Forecast 12-Month 22.1 14.6 Amazon.com Inc. 6.3 % Bmrk Holdings 92.5 100.0 Dividend Yield 0.4 1.4 Google Inc. Cl A 6.3 % of Top 10 Holdings 55.7 29.2 Total 35.4

S E C T O R A L L O C A T I O N ( % ) S E C T O R A C T I V E W E I G H T ( % ) Sector Name EQCOMP R1000G Technology 33.1 27.6 Technology 5.5 Consumer Discretionary 24.5 16.8 Health Care 15.7 10.1 Consumer Discretionary 7.7 Financial Services 10.2 5.9 Health Care 5.6 Energy 9.7 10.0 Financial Services 4.4 Materials & Processing 3.0 5.9 Producer Durables 2.9 13.2 Energy -0.3 [Cash] 0.9 0.0 Materials & Processing -3.0 Consumer Staples 0.0 9.9 Producer Durables -10.3 Utilities 0.0 0.6 [Cash] 0.9 Consumer Staples -9.9 Utilities -0.6

-15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 EQCOMP

Information presented in the Attribution Summary Report is supplemental to a GIPS compliant presentation provided at the end of the presentation. Past performance is not indicative of future results.

16 SGATT0312 2020 thth AnniversaryAnniversary Attribution Summary

I N V E S T M E N T R E S U L T S S U M M A R Y 1 YEAR ENDING MARCH 31, 2012

TAX-EXEMPT INSTITUTIONAL EQUITY COMPOSITE B E S T A B S O L U T E P E R F O R M E R S W O R S T A B S O L U T E P E R F O R M E R S ® Russell 1000 Growth Company Name Average Weight Return Contribution Company Name Average Weight Return Contribution Base Currency: USD Regeneron Pharmaceuticals Inc 1.1 100.5 1.8 OpenTable Inc. 0.8 -61.2 -1.1 Alexion Pharmaceuticals Inc. 3.4 88.2 2.8 Netflix Inc. 2.3 -51.6 -1.9 RETURNS Trailing 1 Year Apple Inc. 7.2 72.0 4.5 Southwestern Energy Co. 2.0 -28.8 -0.9 75 Attribution Generated Return 22.6 Intuitive Surgical Inc. 3.8 62.5 2.1 Illumina Inc. 2.8 -28.2 -1.6 Benchmark Return 11.0 Visa Inc. 7.0 61.6 4.1 Cree Inc. 0.2 -25.2 -0.4 Total Active Return 11.5 T O P A B S O L U T E C O N T R I B U T O R S B O T T O M A B S O L U T E C O N T R I B U T O R S ATTRIBUTION Trailing 1 Year Company Name Average Weight Return Contribution Company Name Average Weight Return Contribution Allocation Effect 2.4 Apple Inc. 7.2 72.0 4.5 Netflix Inc. 2.3 -51.6 -1.9 Selection Effect 9.1 Visa Inc. 7.0 61.6 4.1 Illumina Inc. 2.8 -28.2 -1.6 Total Effect 11.5 Alexion Pharmaceuticals Inc. 3.4 88.2 2.8 Schlumberger Ltd. 3.7 -24.0 -1.3 Intuitive Surgical Inc. 3.8 62.5 2.1 OpenTable Inc. 0.8 -61.2 -1.1 Regeneron Pharmaceuticals Inc 1.1 100.5 1.8 Southwestern Energy Co. 2.0 -28.8 -0.9

L A R G E S T H O L D I N G S (with absolute contribution) T O P R E L A T I V E C O N T R I B U T O R S B O T T O M R E L A T I V E C O N T R I B U T O R S Company Name Average Weight Return Contribution Company Name Active Weight Return Contribution Company Name Active Weight Return Contribution ## Apple Inc. 7.2 72.0 4.5 Visa Inc. 6.7 61.6 4.0 Netflix Inc. 2.2 -51.6 -1.8 ## Visa Inc. 7.0 61.6 4.1 Alexion Pharmaceuticals Inc. 3.2 88.2 2.6 Illumina Inc. 2.7 -28.2 -1.5 ## Amazon.com Inc. 6.9 12.4 1.1 Intuitive Surgical Inc. 3.5 62.5 1.9 OpenTable Inc. 0.8 -61.2 -1.1 ## Salesforce.com inc. 6.7 15.7 0.5 Regeneron Pharmaceuticals Inc 1.0 100.5 1.7 Schlumberger Ltd. 2.2 -24.0 -0.8 ## QUALCOMM Inc. 5.6 26.1 1.2 W.W. Grainger Inc. 2.6 58.6 1.6 Southwestern Energy Co. 1.8 -28.8 -0.8

S E C T O R A L L O C A T I O N & R E T U R N S Sands Cap Active Weight (%) Russell Sector Return Relative to Total R1000G Return (%) Sector Allocation Effect (%)

Producer Durables -9.6 -10.0 1.0

Technology 4.7 11.8 0.5

Consumer Discretionary 5.5 8.2 0.4

Materials & Processing -3.8 -9.8 0.4

Health Care 5.6 1.1 0.3

Utilities -0.6 -16.0 0.2

Financial Services 6.2 0.8 0.1

Energy 0.7 -20.5 -0.1

Consumer Staples -9.7 6.2 -0.3

-15.0 -10.0 -5.0 0.0 5.0 10.0 -25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2

TAX-EXEMPT INSTITUTIONAL EQUITY COMPOSITE

17 SGATT0312 2020 thth AnniversaryAnniversary Attribution Summary

I N V E S T M E N T R E S U L T S S U M M A R Y 3 AND 5 YEARS ENDING MARCH 31, 2012

6 29 52 52 75 98 121 TAX-EXEMPT INSTITUTIONAL EQUITY COMPOSITE Trailing 3 Trailing 5 ® R E T U R N S Month 3 Months YTD Trailing 1 Year Russell 1000 Growth Year* Year* Attribution Generated Return 5.7 24.5 24.5 22.6 167.2 67.6 Selection Eﬀect Allocation Eﬀect Total Active Return Benchmark Return 3.3 14.7 14.7 11.0 96.7 28.3 80% 70% Total Active Return 2.4 9.8 9.8 11.5 70.6 39.4 60% Trailing 3 Trailing 5 50% A T T R I B U T I O N Month 3 Months YTD Trailing 1 Year 40% Year* Year* 30% Allocation Effect 0.6 1.9 1.9 2.4 7.6 -6.8 20% 10% Selection Effect 1.9 7.8 7.8 9.1 62.9 46.2 % Total Effect 2.4 9.8 9.8 11.5 70.6 39.4 -10% -20% Month 3 Months YTD Trailing 1 Year Trailing 3 Year* Trailing 5 Year* *Trailing 3 Year and Trailing 5 Year returns and attribution analysis are presented on a cumulative basis.

T R A I L I N G 3 Y E A R * T O P A B S O L U T E S E C T O R C O N T R I B U T O R S T O P A B S O L U T E C O N T R I B U T O R S T O P R E L A T I V E C O N T R I B U T O R S Sector Name Average Weight Return Contribution Company Name Average Weight Return Contribution Company Name Active Weight Return Contribution

103 Technology 29.1 203.9 53.2 # Apple Inc. 7.3 470.3 21.2 # Las Vegas Sands Corp. 2.6 1821.1 16.3

104 Consumer Discretionary 18.7 315.9 40.5 # Las Vegas Sands Corp. 2.7 1821.1 16.6 # Intuitive Surgical Inc. 4.3 468.1 14.3

105 Health Care 18.7 208.1 33.9 # Intuitive Surgical Inc. 4.5 468.1 14.7 # Salesforce.com inc. 5.6 372.1 12.4

106 Energy 12.8 136.4 22.0 # Salesforce.com inc. 5.8 372.1 12.7 # Apple Inc. 3.0 470.3 12.0 107 Financial Services 12.8 75.8 12.5 # Amazon.com Inc. 6.8 175.7 11.6 # Amazon.com Inc. 6.0 175.7 10.6

B O T T O M A B S O L U T E S E C T O R C O N T R I B U T O R S B O T T O M A B S O L U T E C O N T R I B U T O R S B O T T O M R E L A T I V E C O N T R I B U T O R S Sector Name Average Weight Return Contribution Company Name Average Weight Return Contribution Company Name Active Weight Return Contribution

111 Materials & Processing 2.4 -9.2 -1.1 # Monsanto Co. 1.3 -32.1 -2.0 # Monsanto Co. 0.6 -32.1 -1.9

110 Consumer Staples 0.0 0.0 0.0 # Netflix Inc. 1.0 -42.2 -1.5 # Netflix Inc. 0.9 -42.2 -1.5

109 Producer Durables 3.7 47.2 2.7 # OpenTable Inc. 0.3 -61.4 -1.1 # OpenTable Inc. 0.3 -61.4 -1.1

108 Utilities 0.8 62.9 3.6 # Cree Inc. 0.4 -36.8 -1.0 # Cree Inc. 0.3 -36.8 -1.1 # Charles Schwab Corp. 2.0 -19.6 -1.0 # Charles Schwab Corp. 1.7 -19.6 -1.0

T R A I L I N G 5 Y E A R * T O P A B S O L U T E S E C T O R C O N T R I B U T O R S T O P A B S O L U T E C O N T R I B U T O R S T O P R E L A T I V E C O N T R I B U T O R S Sector Name Average Weight Return Contribution Company Name Average Weight Return Contribution Company Name Active Weight Return Contribution

126 Technology 27.8 127.9 45.1 # Apple Inc. 6.6 545.3 22.7 # Apple Inc. 3.3 545.3 13.5

127 Consumer Discretionary 16.6 29.6 12.2 # Amazon.com Inc. 5.6 121.9 12.8 # Amazon.com Inc. 4.9 121.9 11.5

128 Health Care 21.6 126.6 9.4 # Salesforce.com inc. 4.6 260.8 11.3 # Salesforce.com inc. 4.4 260.8 11.1

129 Producer Durables 3.0 13.8 1.7 # Intuitive Surgical Inc. 4.2 345.6 8.6 # Intuitive Surgical Inc. 4.0 345.6 8.3 130 Energy 12.7 60.9 1.2 # Visa Inc. 4.5 168.2 7.0 # Visa Inc. 4.1 168.2 6.8

134 Financial Services 13.0 3.0 -1.7 # Moody's Corp. 1.3 -65.5 -5.3 # Moody's Corp. 1.2 -65.5 -5.3

133 Consumer Staples 0.7 -15.8 -0.6 # CME Group Inc. Cl A 2.2 -46.6 -4.9 # CME Group Inc. Cl A 2.1 -46.6 -4.7

132 Materials & Processing 1.5 -1.0 -0.3 # Schlumberger Ltd. 4.6 7.8 -3.2 # EMC Corp. 0.9 -30.6 -3.5

131 Utilities 2.1 -3.4 0.6 # Stryker Corp. 1.2 -15.1 -3.1 # Las Vegas Sands Corp. 2.3 -48.2 -3.2 # EMC Corp. 1.4 -30.6 -3.1 # Stryker Corp. 1.0 -15.1 -2.9

*Trailing 3 Year and Trailing 5 Year returns and aribution analysis are presented on a cumulative basis. 18 SGATT0312 2020 thth AnniversaryAnniversary Why We Own — Select Growth (As of 5/31/12)

Alexion Pharmaceuticals Inc. (ALXN) is a leader in the development of biological treatments for rare diseases. The company markets one drug, Soliris, which is a monoclonal antibody that suppresses a component of the immune system. Soliris has become the standard treatment for a rare disease known as paroxysmal nocturnal hemoglobinuria (PNH) and we think this setting has long-term potential to be a $1B+ opportunity globally (more than half of revenues are already coming internationally). Similar to the enzyme replacement market, PNH patients have no other treatment options, they stay on drug for life and the company issteadily identifying new patients through global expansion and patient and clinician education. What makes Soliris so engaging is that due to its mechanism of action it may have applicability in a variety of rare auto-immune diseases beyond PNH, and thus has “pipeline-in-a-drug” potential. There are very few platform therapies that have proven successful in multiple disease settings, and these opportunities tend to be very profitable as new geographies and indications are developed. Alexion has a broad development program to explore the potential for Soliris in other diseases beyond PNH. We are projecting 20%+ sales growth and 30%+ EPS growth annualized over the next five years for Alexion driven by global expansion of Soliris in multiple indications.

Allergan Inc. (AGN) is a global company that develops and markets products in eye care, medical aesthetics, and neurology. With the acquisition of Inamed, we believe that Allergan strengthened its aesthetics franchise while adding a breakthrough treatment for obesity, the Lap-Band. Allergan has one of the largest sales forces for its size, including the largest ophthalmic sales force and medical aesthetics sales force globally. Though its product line, Allergan is gaining market share in all three therapeutic areas. Allergan’s Botox biotech product is a leading treatment to reduce wrinkles. Botox is also proving useful in a wide varietyofneuromuscular therapeutic indications beyond the cosmetic area, such as movement disorders, cerebral palsy, excessive sweating, migraines, and back pain. We expect 14-17% annualized EPS growth over the next five years.

Amazon.com Inc. (AMZN) is an internet-based retailer with a clear focus on being an extremely customer-centric company where people can find nearly anything they want to buy online. Online retail growth is expected to continue to significantly outpace overall retail spending for the foreseeable future, and Amazon.com should be a primary beneficiary of this global trend. We believe Amazon.com will continue to take share as a result of its vast product selection, compelling value proposition, easy-to-use interface, and high customer satisfaction. In addition, we anticipate that Amazon.com will continue to grow its high margin third party business and leverage the fulfillment and technology investments it has made the past several years to drive operating margins to mid-single digit levels. We anticipate robust top-line growth, scale-based expense leverage and sales mix shift to drive 30%+ average annual EPS growth over the next five years.

Apple Inc. (AAPL), in our view, is one of the most innovative consumer electronics companies in the world. Over its history, we believe that Apple has fundamentally transformed two major industries: personal computers and digital music. With the introduction of the iPhone, we believe it transformed a third industry: mobile computing. The iPhone continues to set the standard and was the best-selling phone in 2011. The iPad, launched in 2010, created a new device category and was one of the most successful product launches in history, generating over $12 billion in sales in its first year of availability. We believe Apple will continue to innovate and leverage its brand to introduce successful new products that address and expand new markets. We expect Apple’s current and prospective businesses to drive approximately 20% annual EPS growth over the next three to five years.

ASML Holding N.V. (ASML) is the largest supplier of capital equipment for semiconductor manufacturing and the dominant (70%+ share) supplier of photo- lithographic equipment (steppers), the single largest sub-segment of the semi-cap equipment market. We believe that photolithography is increasingly becoming the technological bottleneck in manufacturing chips in accordance with Moore’s Law−the famous observation that the number of transistors on a chip doubles every two years. Smaller transistors mean that semiconductor lithography machines must be able to print finer features with every new generation of chips. In our view, ASML is even more dominant in the market for advanced steppers (ArF immersion or ArFi), where we believe it holds a widening competitive advantage over its only major competitor, Nikon, especially in terms of the number of chips processed per hour, which is a vital metric for chip makers. In 2013, the semiconductor industry is expected to begin a major technological shift from photolithography to Extreme Ultra Violet (EUV) technology. We estimate ASML holds a twotothree year lead over Nikon in EUV and believe this transition will continue to extend ASML’s market share lead. We believe the increased pricing power, the growing complexity of steppers, and the continued overall growth of the semiconductor industry will result in a five year revenue CAGR over 20%.

19 SGWWO0512 2020 thth AnniversaryAnniversary Why We Own — Select Growth

athenahealth Inc. (ATHN) is a leading provider of cloud-based business services in the healthcare information technology space for physician practices. athenahealth (athena) offers an integrated suite of services to physician practices in the $15-20 billion revenue cycle management (RCM) market. athena’s unique RCM platform, athenaCollector®, combines a web-based practice management system, a proprietary “live” payer rules database, and an outsourcing service for back office billing operations in a subscription model. We think the insurance rules database is athena’s key asset, as it is the most comprehensive tool available to physician practices to ensure that insurance claims are submitted properly, which can have a significant impact on a practice’s cash flow. Health insurance billing is extremely complex (40M+ payer rules) and athena customers have consistently documented much faster payment turnaround (35% average reduction in accounts receivable days outstanding), fewer claim rejections (increasing revenues by 10%+), and lower overhead costs. The rules database has been developedoverthelast decade and we believe it will be very difficult to replicate. In addition to the core RCM opportunity, athena launched the athenaClinicals® electronic medical records (EMR) platform and athenaCommunicator® suite of patient communication tools. We think this represents an attractive cross-selling opportunity and, with the physician practice EMR market still relatively early in its development, it provides a long duration growth opportunity. In our view, the company’s subscription business model has very attractive economics and scales well, and we are projecting a revenue CAGR of 25%+ over the next three to five years, with EPS growing faster through operating leverage.

Cerner Corp. (CERN) is a leading global provider of integrated clinical information systems. We believe Cerner's flagship product, the Cerner Millennium software suite, provides the most comprehensive set of clinical applications designed to improve safety, quality, and efficiency in the hospital setting. In our view, Cerner’s organically-built Millennium architecture, broad product portfolio, and strong global franchise uniquely position it to benefit from the robust secular tailwinds driving the adoption of clinical information systems. Furthermore, Cerner provides a variety of value-added services around its core Millennium offering. These services include off-site hosting capabilities, operational management, and revenue cycle management, which should provide a solid recurring revenue stream and opportunities to deepen relationships with current clients. We expect Cerner to capture a disproportionate share of new contract wins across multiple geographies, cross-sell additional modules/services to its large installed base, and continue to improve operating margins. This should translate to high teens annual EPS growth or better over the next five years..

Coach Inc. (COH) is a leader in the $28 billion global premium handbags and accessories market. Through its “affordable luxury” value proposition, Coach has achieved the leading market share in the U.S. (36% share) and the #2 position in Japan (16% share). We believe Coach is uniquely positioned to capitalize on global growth opportunities due to its brand strength, strong financial position, and execution-driven management team. We think there is plenty of room forgrowthinthe U.S., and see an even longer runway for continued expansion into overseas markets. We expect Coach to triple its store base in China over the next five years while continuing to take market share in Europe, Brazil, Southeast Asia and the Middle East. Furthermore, Coach has solid and growing operating margins and returns on capital by virtue of efficiencies in manufacturing, tight control over its sales channels, and its ability to leverage existing infrastructure. We believe Coach can achieve a low-teens revenue CAGR over the next five years, and could potentially deliver an even higher EPS CAGR (15-18%) through additional margin expansion and share buybacks.

F5 Networks Inc. (FFIV) is the market share leader in the increasingly important L4-7 switch market. L4-7 switches, a sub-segment of network equipment, are deployed in large data centers to connect servers to the network. Unlike standard Ethernet switches, L4-7 switches employ far more advanced packet processing techniques that can dramatically improve the performance, security, and reliability of the data center as a whole. This enables larger scale deployments of Web-based applications with fewer servers at a lower cost to F5’s customers, which include both enterprises and service providers. We believe the demand for L4-7switches, which today account for less than 10% of all server connections, will accelerate driven by potential developments such as the consolidation of data centers, the continued adoption of server virtualization, and the migration to Software-as-a-Service. We believe that the complexity of L4-7 switching and the mix of customized chips and software necessary to ensure reliable performance creates high barriers to entry. In our view, F5’s competitive position is further enhanced by the software associated with its switches, which creates deep connections to the application layer, making it difficult for customers to change systems. Lastly, F5 Networks has built software “connectors” to hundreds of applications via its iControl (an Application Programming Interface), creating what we believe is a difficult-to-replicate ecosystem. We expect F5 to grow revenue over 20% annually over the next five years with EPS growth even higher. 20 SGWWO0512 2020 thth AnniversaryAnniversary Why We Own — Select Growth

Facebook Inc. (FB) is the clear leader in social networking with over 900 million active users and accounts for more time spent online than any other destination on the web. Facebook’s broad application for users—e.g., communicating with friends, sharing news, photos, organizing events, etc.—creates a platform that captures unparalleled knowledge of human connections (i.e., the “social graph”). We think this platform is building the foundation to revolutionize online advertising by allowing marketers to mine its data to more effectively target and engage with brand advocates in ways previously not possible. To date, monetization of Facebook's platform has been limited to the placement of traditional banner ads. However, we think the company continues to innovate and recently introduced differentiated and scalable ad formats based on its rich social information. We believe this social ad format is the first step of many that should drive Facebook’s share gains in the $500B+ worldwide advertising market by accelerating the shift of brand advertising online. As online advertising continues to evolve, Facebook’s platform offers significant optionality as its competitive advantages should allow it to develop a number of important revenue generating opportunities in the future. Based on the strength of its platform, richness of social data, and track record of innovation, we believe Facebook can achieve annual revenue growth of 35% and even greater annual EPS growth over the next five years.

FMC Technologies Inc. (FTI) is a leading global provider of subsea equipment used to produce and process oil and natural gas from offshore wells. We believe this is a rapidly-expanding market because of: 1) the compelling size and economics of offshore reservoirs, 2) the maturation of the world’s onshore basins, and 3) limited onshore access for international oil companies. In our view, the long planning horizons and substantial up-front capital investment associated with offshore (particularly deepwater) oil and gas projects reduces cyclicality around upstream spending patterns – insulating FMC’s revenues and profits from short-term fluctuations in market sentiment. FMC has historically garnered approximately 40% of subsea equipment awards, and we expect the company to take additional market share over time as demand shifts towards higher-specialty equipment for deeper water and more technically challenging projects. We believe key products include subsea trees, manifolds, and related equipment, as well as several game-changing technologies such as subsea separation systems, subsea gas compression systems, and riserless light well intervention systems. We expect approximately 25% average annual EPS growth over the next five years.

Google Inc. (GOOG) is one of the world’s leading Internet search engines. It generates revenue by placing relevant ads next to content, primarily search results. This allows advertisers to specifically target individuals who have expressed interest through the nature of their searches. These ads are typically very attractive to advertisers as, unlike most traditional ads, they can be acted on and their performance is measurable. Our confidence in Google’s growth is based on the expectation that advertising dollars spent on the Internet will approach parity with traditional media and the monetization rates in continental Europe will catch-upwiththosein the U.S. and the U.K. Currently, TV, print, and direct mail each receive far more advertising dollars than the Internet in the U.S. Further, spending perpersonon Google in Northern Europe is less than one-third of the spending level in the U.K. In our view, two additional growth areas, mobile and display advertising, are becoming material and we expect them to add several percentage points of growth on top of Google’s core search business. When combined with margin expansion, we expect 15-20% compound annual EPS growth over the next five years.

IntercontinentalExchange Inc. (ICE) is a leading derivatives exchange. It operates a vertically integrated electronic platform for trading and clearing both futures and over-the-counter (OTC) commodity and financial derivatives as well as an inter-dealer broker for the trading of credit derivatives. The company holds dominant liquidity positions in several rapidly growing benchmark commodity contracts (e.g. crude oil, sugar, natural gas, etc.) and is emerging as a leading innovator in key back office processing functions within the OTC market. IntercontinentalExchange charges a transaction fee for each contract traded or processed onitsplatform, which we believe is an extremely attractive “toll booth” business model that is highly leverageable across a fixed-cost base. We think that rapid volume growth will be driven by the growing acceptance of commodities as an investable asset class, expansion into new product categories, and the increasing use of derivative products for risk management and algorithmic trading strategies. We expect growing volumes and margin expansion to drive mid-teens annual EPS growth over the next three to five years.

21 SGWWO0512 2020 thth AnniversaryAnniversary Why We Own — Select Growth

IntuitiveSurgicalInc.(ISRG)is the dominant leader in the emerging robotic surgical systems space. Intuitive Surgical's da Vinci Robotic Surgical System enables surgeons to perform minimally-invasive (MIS) procedures with a greater level of precision than both traditional open surgery and laparoscopic surgery. The da Vinci system provides surgeons with intuitive wristed control, 3-D magnified views, tremor control, precise tissue manipulation, and the opportunity to perform MIS procedures for a variety of surgical procedures. Intuitive Surgical owns a monopoly position with the 2003 acquisition of its only competitor, Computer Motion, and we believe that it is well protected with its broad patent portfolio (200+ patents). The proliferation of strong clinical data has helped establish the da Vinci procedure as a standard of care in urology (radical prostatectomy) and is driving rapid adoption in gynecology (hysterectomy). Adoption is accelerating outside of the U.S., particularly in Europe. We project 20-25% annualized EPS growth over the next five years based on both system sales and recurring revenues (instruments and service revenues).

Las Vegas Sands Corp. (LVS) is one of the world’s premier operators and developers of integrated resort/casino/convention centers. The company’s reputation as a high quality developer of integrated resorts gives us confidence in its ability to win new licenses around the world. In 2011, Las Vegas Sands’ Marina Bay Sands property contributed 1.1% to Singapore’s gross domestic product. Today, Macau is multiples larger than the Las Vegas Strip in terms of gaming revenuesandthere are multiple other Asian countries considering adding integrated resorts over the next few years. Collectively, Asia currently accounts for approximately 75% of total revenues and the company remains focused on continuing its growth in this region. Due to the cash flow rich nature of the business model, we expect properties currently operating and/or under construction to deliver 25%+ EPS and 30%+ FCF CAGR through 2016.

National Oilwell Varco Inc. (NOV) is a leading global provider of critical drilling rig equipment, as well as related consumables and services. In our opinion, there are few meaningful competitors for many of its products. We believe National Oilwell Varco will remain the primary supplier of key equipment and services as the aging global rig fleet continues to be upgraded, expanded, and focused more on offshore capabilities over the next decade. The company’s shorter-cycle, activity- driven businesses could benefit from elevated levels of oilfield activity and increasing service intensity globally as well as from a growing stream of aftermarket revenues from expansion/modernization of the global rig fleet. Coupled with modest expense leverage, we think these sales drivers will lead to 15%+ average annual EPS growth over the next five years.

Netflix Inc. (NFLX) is an online movie subscription service that provides DVD rentals by mail and online streaming to over 24 million subscribers. While Netflix continues to ship over two million discs per day, it is shifting to an online delivery platform, available on over 200 consumer electronic devices including the iPhone, iPad, Internet-connected TVs, and Blu-Ray players. We believe Netflix has positioned itself to be a winner in the shift to video content delivered overtheInternet, despite the missteps it has made regarding pricing and brand. We believe Netflix will continue to benefit from a virtuous cycle as its large subscriber base allows it to expand its content library, which should attract additional subscribers. We think this large subscriber base creates high barriers to entry as competitors and new entrants would have to purchase content distribution rights without subscription revenues to pay for them. We believe Netflix’s paying U.S. subscriber base should exceed 40 million by 2015. Additionally, Netflix is now available in Latin America, the United Kingdom and Canada. Despite spending heavily to increase its content library, we expect Netflix to achieve significant operating leverage driven by subscriber growth, online delivery cost savings, and lower marketing spend. The combination of revenue growth and margin expansion drives our expectation of 20%+ annualized EPS growth through 2015.

22 SGWWO0512 2020 thth AnniversaryAnniversary Why We Own — Select Growth

Nike Inc. (NKE) is a leader and, we believe, the best positioned company in the global athletic footwear and apparel industry. It has one of the broadest addressable markets, selling products for men, women, and children across 180 countries. We believe Nike is one of only a few globally recognized brands with an established international business (over 60%+ revenues) that is at scale in many emerging markets (~30% of total revenues). In our view the growth drivers for the company include: 1) increasing share in the Chinese sportswear market, including basketball; 2) benefiting from soccer growth in Central/Eastern Europe and Latin America to become the leading global soccer brand; 3) growing its “Other” segment organically and through acquisitions; and 4) taking share in developed markets from weaker competitors. Furthermore, we believe Nike has several margin and EPS growth opportunities which should drive a mid-teens EPS CAGR over thenext five years.

Praxair Inc. (PX) is one of the world’s leading suppliers of industrial gases such as oxygen, nitrogen, hydrogen, and other specialty gases. Praxair’s products, services and technology bring productivity and environmental benefits to a wide variety of industries, including general manufacturing, metals, chemicals, food/beverage, healthcare, and electronics. Sales are highly recurring due to the contractual and consumable nature of the business and customer relationships are sticky. At a regional level, gas companies with the greatest asset density tend to have a cost and service advantage relative to the competition and as a result, local/regional markets naturally tend to evolve into monopolies or duopolies. In some ways, Praxair can be thought of as a global utility company with long duration growth prospects, but without the regulatory issues. We think Praxair differentiates itself through its focus on building density in the most attractive geographies and believe that the company is the leader in North America, South America (especially Brazil), India, and is tied for #1 in China. Growth in emerging economies (very low per capita usage relative to the developed world, but growing rapidly due to industrialization), increased gas outsourcing, productivity and energy efficiency mandates, and higher gas intensity usage through new processes should drive increased demand for gases worldwide. Praxair’s leadership in what we believe to be the most attractive markets should allow it to disproportionately benefit from these long-duration trends. Over the next five years we expect EPS to grow low tomid-teens annually, particularly aided by strong growth in emerging markets which we expect to continue to become a larger portion of the overall business.

priceline.com Inc. (PCLN) is one of the leading global online travel agents with a focus on online hotel reservations which is benefitting from the overall trend toward e-commerce, specifically the increasing use of the Internet by consumers to book hotels. Priceline.com is a leading value-focused site in the U.S. and, through its subsidiary Booking.com, runs one of the leading online hotel reservation websites in Europe. We believe Priceline has an attractive business model that is exceptionally scalable and has unusually high margins. Booking.com works with over 100,000 hotels in 89 countries, and we believe online reservations, which in our estimation were only 22% of the Western European market in 2010, will increase dramatically over the coming years. Booking.com may benefit from a virtuous cycle where more users attract more hotels, which then attract more users. As a distributor, we believe that Booking.com benefits from the limited presence of major hotel chains in Europe. While we expect Europe to be a key driver of growth to the future, priceline.com is expanding into new regions, including Asia and LatinAmerica. We expect 20%+ annual EPS growth over the next five years as hotel reservations move online and priceline.com expands geographically.

Qualcomm Inc. (QCOM) invented and owns the CDMA air-interface technology underlying a significant portion of 2/2.5G and all 3G mobile phone networks. Qualcomm derives 60% of its revenue from selling chips incorporating CDMA and 34% of its revenue (but 60% of operating income) from royalties on all devices that use CDMA. We think Qualcomm’s growth will be driven by the transition from 2/2.5G, where the majority of handsets are not CDMA-based (and thereforedo not generate a royalty for Qualcomm), to 3G where all handsets are CDMA based. With the 3G transition, the number of devices from which Qualcomm will collect a royalty is expected to increase from 450 million in 2008 to approximately 1.7 billion in 2015. We expect Qualcomm to maintain its number one share in cellular baseband processors during this period and to achieve a five year EPS CAGR of 20%+.

23 SGWWO0512 2020 thth AnniversaryAnniversary Why We Own — Select Growth

Regeneron Pharmaceuticals Inc. (REGN) is an emerging biotechnology company that utilizes several proprietary technology platforms to develop biologic drugs for the treatment of an array of debilitating medical conditions. The company’s key asset is Eylea; a “pipeline-in-a-drug” that exhibits strong potential as a treatment for a variety of retinal diseases. We believe that Eylea provides the best-in-class combination of efficacy, duration of action, and safety for the treatment of age- related macular degeneration (AMD), which is a multi-billion dollar market. Beyond AMD, Eylea is in clinical trials for diabetic macular edema (DME), another retinal disease affecting a large patient population with few treatment options currently available. In addition to very positive Phase 2 data, our work indicates a strong scientific rational for Eylea as a treatment for DME and we expect the drug to play a major role in the treatment paradigm. Unique for a company of its size, Regeneron has several other interesting later-stage development programs in gout, oncology and cardiovascular disease. Finally, the company has signed significant partnership and drug development deals to lever its proprietary monoclonal antibody technology platform. We believe this is a sound strategy to help defray the significant upfront costs of internal research that may provide meaningful economics longer term. With the potential for a large growth opportunity in Eylea, a well- capitalized balance sheet, strong global partnerships, and a proven platform for continued discovery and development, we believe that Regeneron is well positioned to drive sustainable above-average growth over time

salesforce.com inc. (CRM) is one of the leading providers of Software-as-a-Service (SaaS), focusing primarily on the $11 billion customer relationship management segment of the $79 billion enterprise software market. Compared to traditional licensed software, SaaS offers several compelling benefits to customers including lower total cost of ownership over time, lower upfront costs, and lower implementation risk. SaaS also represents a highly attractive business model for salesforce.com with recurring subscription revenues generated from a scalable, fixed-cost base. Further, salesforce.com is rapidly building a platform and an ecosystem of third-party developers that may allow it to address other segments of enterprise software outside of customer relationship management.Weexpect salesforce.com to grow revenue more than 25% annually over the next five years with significantly higher EPS growth.

Schlumberger Ltd. (SLB) is the world’s largest oilfield services company in terms of revenues, profits, and market capitalization. It provides key services and technology used in hydrocarbon exploration and production activities worldwide. We believe Schlumberger is the leading provider of the highest value-added, highest-margin, technology-focused services and equipment that are essential for structurally constrained oil and natural gas supplies to keep pace with sustained levels of higher global demand over the long term. We believe that increased utilization of Schlumberger’s solutions and margin expansion from mix shift toward higher-margin services, better pricing, and increased scale will lead to 20%+ average annual EPS growth over the next five years, with the opportunityforsignificant growth duration thereafter.

Southwestern Energy Co. (SWN) is a natural gas exploration and production company operating primarily in the Fayetteville Shale, with prospective acreage in the Marcellus Shale, New Brunswick, and elsewhere. Southwestern Energy is among the lowest-cost producers of natural gas in the U.S. by virtue of its position in the prolific, low-cost Fayetteville Shale. We believe the company should benefit as cheap shale gas continues to take significant share of the overall U.S. supply mix from higher-cost conventional production over the next decade. In the Fayetteville, we think Southwestern Energy is highly likely to generate approximately 20% production growth for the next five years (with a slower-growth plateau for at least 10 years thereafter) under any rational commodity price scenario. We believe similar earnings and cash flow growth should follow, assuming current natural gas futures pricing. We also believe substantial upside to the magnitude and duration of this growth is plausible from improved unit economics at the Fayetteville, exploration success elsewhere, and/or a recovery in natural gas prices from temporarily depressed levels.

24 SGWWO0512 2020 thth AnniversaryAnniversary Why We Own — Select Growth

Starbucks Corp. (SBUX) is one of the leading specialty coffee chains in the U.S., with an estimated 30% share of the away-from-home coffee market. We believe it has significant competitive advantages including an iconic global brand, the convenience of nearly 11,000 U.S. stores, a loyal customer base, and a strong balance sheet. In addition, Starbucks has several key drivers that should help it grow earnings and cash flow. These include operating the U.S. and International businesses more profitably to achieve peak margins, achieving scale in their International business, innovative products and promotions to drive traffic and win more “day- parts”, and exploiting opportunities in the Consumer Packaged Goods (CPG) and licensing businesses. Furthermore, falling dairy and coffee prices should provide an additional boost to earnings. As Starbucks transitions from growing earnings through rapid store expansion to a more mature, efficient, cost-focused and stable earnings growth model, we believe it will generate significant free cash flow and mid-teens EPS growth over the next five years.

Visa Inc. (V) operates the world’s largest payment network, processing greater than 50% of all credit and debit transactions globally. Visa’s network serves as the critical link connecting merchants, merchant acquirers, and card issuers. The primary driver of growth is the steady shift globally from paper-based forms of payment (e.g., cash and checks) to plastic/electronic payments. Visa generates revenue by charging brand licensing and transaction fees to card issuers and “merchant acquirers” based on dollar volume and transactions processed on its largely fixed-cost network. While Visa competes with other card networks such as MasterCard, the industry is essentially a duopoly/oligopoly with extremely high barriers to entry. We believe Visa can deliver 15-25% annual EPS growth over the next three to five years.

W.W. Grainger Inc. (GWW) is a leading full-line supplier of facilities maintenance products throughout North America (U.S. and Canada) with expanding operations in international markets such as Mexico, China, Japan, and India. The company sells mostly non-discretionary recurring items such as tools, fasteners, safety, products, etc. to a wide variety of customers including the government, commercial facilities, educational institutions, manufacturing and many others. Grainger operates under a multi-channel business model, unique within this industry, servicing customers through internet, catalog, retail, and direct sales channels, creating greater ease of use for its customers. We believe GWW’s scale, brand and reputation for service coupled with a world-class supply chain give the company a significant competitive advantage relative to other Maintenance Repair and Overhaul (MRO) distributors. The majority of the North American MRO industry is controlled by small and mid-size distributors and we expect Grainger to disproportionately benefit as customers consolidate their supply chains and shift to leading companies such as GWW that that can offer high levels of service, increased product availability, private label products, and more attractive pricing. We expect Grainger to grow sales and earnings over a long duration while delivering mid-teens annualized EPS growth over the next 3-5 years.

Note: Information in this report is current as of May 31, 2012. The views expressed represent the opinions of SCM and are not intended as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell any securities. Their is no assurance that any securities discussed will remain in the portfolio or that securities sold have not been repurchased. You should not assume that any investment is or will be profitable. A company’s fundamentals or earnings growth is no guarantee that its share price will increase. 25 SGWWO0512 2020 thth AnniversaryAnniversary Executive Management Team

Frank M. Sands, Jr., CFA Frank M. Sands, Sr., CFA Chief Investment Officer, Chief Executive Officer Chairman, Founder Joined Sands Capital in 2000 Formed Sands Capital in 1992 President, Director of Research (2004-2008) Chief Executive Officer, Chief Investment Officer, Sr. Portfolio Manager (1992-2008) Managing Director, Director of Research, Sr. Portfolio Manager (2000-2004) The Capital Management Group, Folger Nolan Fleming Douglas, Inc. (1986-1992) Fayez Sarofim & Co. (1994-2000) Washington, DC • Chief Investment Officer Houston, TX • Research Analyst, Portfolio Manager, Principal Eppler, Guerin & Turner, Inc. (1983-1986) Walker & Dunlop (1989-1991) Dallas, TX • Director of Research, Member of Board of Directors Washington, DC • Commercial Real Estate Leasing and Sales David L. Babson & Company, Inc. (1972-1983) University of Virginia Boston, MA • Director of Research, Member of Board of Directors MBA, Darden School (1994) Loomis, Sayles & Company (1969-1972) Johns Hopkins University Boston, MA • Research Analyst MS, Real Estate Finance & Development (1993) University of Virginia Washington & Lee University MBA, Darden School (1963) BA, Economics (1989) Dickinson College BA, Economics (1960)

Robert C. Hancock Robert C. Puff, Jr., CFA Chief Operating Officer, Chief Compliance Officer Vice Chairman Joined Sands Capital in 2004 Joined Sands Capital in 2001 1838 Investment Advisors, LLC (1998-2002) Director (2001-2004) King of Prussia, PA • Managing Director & Chief Operating Officer American Century Investment Management (1983-2004) Legg Mason Institutional Fund Advisors (1998) Kansas City, MO • Chief Investment Officer, Executive Committee Baltimore, MD • Sr. Vice President & Chief Operating Officer David L. Babson & Company (1970-1983) Rodney Square Management Corp. (1988-1998) (a Wilmington Trust Co. Subsidiary) Boston, MA • Research Analyst, Portfolio Manager Wilmington, DE • Vice President & Treasurer University of Pennsylvania PFPC, Inc. (1980-1987) (a PNC Bank Subsidiary) MBA, Wharton School (1970) Wilmington, DE • Assistant Vice President, Compliance Officer Bucknell University St. Joseph’s University BS, Biology (1967) MBA, Graduate School of Business (1988) BA, Political Science (1973)

Additional Executive Management Team members include David E. Levanson, CFA, Thomas M. Ricketts, CFA, and T. Perry Williams, CFA. Their biographies are listed under Global Sector Heads.

26 SCMBIOS0512 2020 thth AnniversaryAnniversary Global Sector Heads

Thomas M. Ricketts, CFA David E. Levanson, CFA T. Perry Williams, CFA Life Sciences Sector Head Industrials Sector Head Consumer Sector Head Sr. Research Analyst, Sr. Portfolio Manager, Sr. Research Analyst, Sr. Portfolio Manager, Sr. Research Analyst, Sr. Portfolio Manager, Executive Managing Director Executive Managing Director Executive Managing Director Joined Sands Capital in 1994 Re-joined Sands Capital in 2002 Joined Sands Capital in 2004 Research Analyst, Portfolio Manager (2000-2004) MFS Investment Management (1999-2002) Director, Client Relations & Business Research Analyst (1997-2000) Boston, MA • Research Analyst Development (2004-2006) Research Associate (1994-1997) State Street Research & Management (1996-1999) Mercer Investment Consulting, Inc. (1995-2004) University of Virginia Boston, MA • Research Analyst, Vice President Atlanta, GA • Consultant, Principal BS, McIntire School of Commerce (1994) Sands Capital Management (1992-1994) Northwestern University Arlington, VA • Research Analyst MM, Kellogg Graduate School of Management (1999) The Capital Management Group University of Virginia Folger Nolan Fleming Douglas, Inc. (1990-1992) BS, McIntire School of Commerce (1994) Washington, DC • Research Analyst University of Virginia MBA, Darden School (1996) University of Florida BS, Finance (1990)

A. Michael Sramek, CFA Sunil H. Thakor, CFA John K. Freeman Energy Sector Head Financial Services Sector Head Technology Sector Head Sr. Research Analyst, Sr. Portfolio Manager, Sr. Research Analyst, Sr. Portfolio Manager Sr. Research Analyst, Sr. Portfolio Manager Managing Director Joined Sands Capital in 2004 Joined Sands Capital in 2006 Joined Sands Capital in 2001 Research Analyst (May 2005-August 2005) Precursor, Inc. (2003-2005) Research Analyst, Portfolio Manager (2001-2007) Internship (March 2004-July 2004) Washington, DC • Sr. Research Analyst, Network Equipment Mastrapasqua & Associates (2000) Charles River Associates, Inc. (1999-2004) Aurelian Group, Inc. (1998-2003) Nashville, TN • Research Analyst Los Angeles, CA • Associate Arlington, VA • Sr. Partner, Co-Founder • BARRA/RogersCasey (1995-1998) Boston, MA Analyst Paradyne Networks, Inc. (1996-1998) Darien, CT • Associate, Plan Sponsor Services Columbia University Largo, FL • Director, Business Development Vanderbilt University MBA, Columbia Business School (2006) Decisys, Inc. (1995-1996) MBA, Owen Graduate School of Management (2000) Colby College Sterling, VA • Sr. Consultant Princeton University BA, Economics-Mathematics (1999) LINC Computer, Inc. (1990-1995) AB, History (1995) Tokyo, Japan • Director, Business Development ULTRA, Ltd. (1988-1990) Tokyo, Japan • IT Manager Harvard University AB, East Asian Studies (1988) 27 SCMBIOS0512 2020 thth AnniversaryAnniversary Research Analysts

Davis M. Catlin, CFA Brian A. Christiansen, CFA Michael J. Clarke Research Analyst Research Analyst Research Analyst Joined Sands Capital in 2007 Joined Sands Capital in 2006 Joined Sands Capital in 2011 Research Associate (2007-2010) Research Associate (2006-2008) FBR Capital Markets (2007-2011) Arlington, VA • Senior Associate Columbia University Yale University MBA Candidate, Columbia Business School MBA, School of Management (2009) Greenberg Traurig, LLP (2003-2005) (exp. 2013) Yale University Washington, DC • Case Law Manager London Business School BA, Economics (2005) George Washington University MBA Candidate, London Business School (exp. 2013) MBA, Finance (2007) Washington & Lee University University of Redlands BS, Business Administration (2007) BA, Business Administration & Biological Sciences (2002)

Ashraf A. Haque Neil Kansari Matthew W. Luneburg, CFA Research Analyst Research Analyst Research Analyst Joined Sands Capital in 2008 Joined Sands Capital in 2008 Joined Sands Capital in 2006 Chesapeake Partners (2007-2008) PRTM (2002-2006) Research Associate (2006-2009) Waltham, MA • Associate, Sr. Business Analyst Baltimore, MD • Investment Analyst Washington & Lee University McKinsey & Company (2003-2005) University of Virginia (1999-2002) BA, Economics (2006) Chicago, IL • Business Analyst Charlottesville, VA • Graduate Research Assistant GH Smart & Company (2001-2003) Department of Electrical Engineering Chicago, IL • Director, Business Development Millennium Solutions; Harvard University Universal Impex (1997-1999) MBA, Harvard Business School (2007) Mumbai, India • Application Analyst Northwestern University Mahajan & Aibara: BA, Mathematical Methods in the Social Sciences Shah Gupta & Co. (1996-1997) and Economics (2001) Mumbai, India • Accounting Trainee University of Virginia MBA, Darden School (2008) University of Virginia MS, Electrical Engineering (2002) University of Mumbai (Bombay) BE, Electronics Engineering (1996)

28 SCMBIOS0512 2020 thth AnniversaryAnniversary Research Analysts

Wesley A. Johnston, CFA Barron B. Martin, Jr. Michael F. Raab, CFA Research Analyst, Portfolio Manager Research Analyst Research Analyst, Portfolio Manager Joined Sands Capital in 2004 CFA Program Level III Candidate Joined Sands Capital in 2007 Research Analyst (2006-2008) Joined Sands Capital in 2008 Research Analyst (2009-2010) Research Associate (2004-2006) Senior Research Associate (2011) Research Associate (2007-2009) University of Pennsylvania Research Associate (2008-2010) SNL Financial (2006-2007) BS, Economics (2002) Washington & Lee University Charlottesville, VA • Analyst School of Veterinary Medicine, 1 Year Attended (2004) BS, Business Administration (2008) University of Maryland BA, Geology (2008) MBA, Robert H. Smith School of Business (2011) University of Virginia BA, Economics (2005)

Michael P. Rubin, MD, CFA Thomas H. Trentman, CFA Research Analyst, Portfolio Manager Research Analyst, Portfolio Manager Joined Sands Capital in 2008 Joined Sands Capital in 2005 Research Analyst (2008-2010) Research Associate (2005-2008) Massachusetts Eye and Ear Infirmary (2006-2007) Washington & Lee University (Harvard Medical School) BS, Physics-Engineering (2005) Boston, MA • Physician, Scientist, and Fellow BA, Chemistry (2005) The University of Chicago (2003-2006) Chicago, IL • Resident in Ophthalmology Mount Auburn Hospital (2002) (Harvard Medical School) Boston, MA • Intern in Internal Medicine University of Chicago Doctor of Medicine, Pritzker School of Medicine (2002) University of Massachusetts Amherst MBA, Isenberg School of Management (2010) University of California Los Angeles (UCLA) BS, Electrical Engineering (1998)

29 SCMBIOS0512 2020 thth AnniversaryAnniversary Other Key Professionals

David L. Kluger Michael F. Hotchkiss Managing Director, Client Relations Managing Director, Joined Sands Capital in 2008 Client Relations & Business Development Director of Client Relations (2008-2011) Joined Sands Capital in 2003 Cambridge Associates, LLC (2001-2008) Putnam Investments (1994-2003) Arlington, VA • Managing Director Boston, MA • Sr. Vice President, Charles Schwab & Co. (1996-1999) Institutional Management Raleigh, NC • Sales Supervisor Massachusetts Financial Services (1989-1994) Dean Witter, Reynolds, Inc. (1994-1996) Boston, MA • Vice President, Albuquerque, NM • Account Executive Institutional Management University of North Carolina Procter & Gamble International MBA, Kenan-Flagler Business School (2001) Distributing Co. (1985-1988) Chicago, IL • Group Manager, Distribution Services Amherst College BA, English (1991) University of Kentucky BBA (1984)

Stephen F. Nimmo Sharon Kedar, CFA Head of Business Development, Managing Director, Business Initiatives Director, Client Relations Joined Sands Capital in 2002 Joined Sands Capital in 2010 Director of Client Relations (2006-2011) Martin Currie Inc. (2008-2010) Research Analyst, Portfolio Manager (2002-2006) New York, NY • Sr. Client Director McKinsey & Company (1999-2002) Gartmore Investment Management (1997-2008) San Francisco, CA • Consultant London, UK • European Sales Director McKinsey & Company (1995-1997) The WM Company (1996-1997) Houston, TX • Consultant Edinburgh, UK • Client Director Harvard University The Sedgewick Group Ltd. (1991-1996) MBA, Harvard Business School (1999) Edinburgh, UK • Client Director Rice University Durham University BA, Economics (1995) BA, Economics & History (1991)

30 SCMBIOS0512 2020 thth AnniversaryAnniversary Other Key Professionals

Kevin G. Murphy, CFA Samantha L. Toler Luke C. Iglehart Director, Wealth Management Director, Client Relations Director, Consultant Relations Portfolio Manager Joined Sands Capital in 2006 Joined Sands Capital in 2011 Joined Sands Capital in 2002 Goldman Sachs, & Co. (2000-2006) Cambridge Associates (2006-2011) Marriott International (1999-2001) New York, NY • Vice President Arlington, VA • Sr. Investment Consultant Washington, DC • Sr. Manager, Business Strategy/ SCA Consulting (1995-1998) U.S. Representative Harold Ford, Jr. (2001-2004) Business Analysis New York, NY • Consultant Washington, DC • Sr. Legislative Assistant Advisory Board Company (1996-1997) Neuberger Berman (1994-1995) University of Virginia Washington, DC • Marketing Associate New York, NY • Portfolio Assistant MBA, Darden School (2006) Dole/Kemp ’96 (1995-1997) New York University Wake Forest University Washington, DC • Sr. Budget Manager MBA, Stern School of Business (2000) BA, Political Science (2001) Bush/Quayle ’92 Campaign Committee, Inc. Brown University (1991-1993) BA, American Civilization Studies (1994) Washington, DC • Compliance Analyst Georgetown University MBA, McDonough School of Business (1999) The Colorado College BA, Political Science (1991)

Dana M. McNamara Bryan C. Leibrand, CIMA® Andrew P. Giordano Director, Client Service Director, Portfolio Analysis & Wealth Management Associate Joined Sands Capital in 2000 Communications Joined Sands Capital in 2010 Cardinal Wealth Services, Inc. (1999-2000) Joined Sands Capital in 2011 Friedman, Billings, Ramsey Capital Markets Fairfax, VA • Registered Sales Assistant FBR Asset Management (2007-2011) (2008-2010) Crestar Bank, NA (1997-1999) Arlington, VA • Managing Director Arlington, VA • Vice President Vienna, VA • Registered Sales Assistant The FBR Funds (1998-2007) Friedman, Billings, Ramsey Capital Markets Crestar Bank, NA (1992-1997) Arlington, VA • Senior Vice President (2006-2008) • Vienna, VA • Banking Branch Manager University of Richmond Arlington, VA Associate Vice President James Madison University BA, Health Science (1995) Friedman, Billings, Ramsey Group BBA, Finance (1992) (2004-2006) Arlington, VA • Sales Assistant Middlebury College BA, International Politics & Economics (2004)

31 SCMBIOS0512 2020 thth AnniversaryAnniversary Tax-Exempt Institutional Equity Composite (TEIEC) Performance Disclosure TEIEC Russell 1000® Growth (R1000G) Year Number of Assets at End of Percentage of Asset Weighted Firm’s Total Assets Annualized 3 Yr. Ex-Post Annualized 3 Yr. Ex-Post End Portfolios Period USD Millions Net Return Gross Return R1000G Firmwide Assets Standard Deviation1 USD Millions Standard Deviation Standard Deviation 2011 122 $8,572.50 2.47 3.02 19.92 2.64 17.76 45.70% 0.15 $18,759.70 2010 111 $8,403.52 26.53 27.22 27.20 16.71 22.11 52.33% 0.26 $16,057.27 2009 113 $7,420.73 71.37 72.23 25.10 37.21 19.73 53.51% 0.47 $13,867.06 2008 142 $4,164.02 (48.67) (48.37) 20.59 (38.44) 16.40 55.03% 0.28 $8,384.73 2007 193 $11,312.73 19.15 19.72 12.65 11.81 8.54 54.93% 0.43 $20,594.23 2006 204 $9,669.81 (5.68) (5.23) 11.88 9.07 8.31 49.25% 0.29 $19,634.91 2005 192 $10,452.28 10.53 10.99 11.73 5.26 9.53 54.27% 0.56 $19,260.19 2004 121 $6,154.01 20.53 21.03 17.04 6.30 15.45 53.87% 0.31 $11,424.80 2003 60 $3,016.30 36.26 36.70 26.17 29.75 22.66 55.24% 0.29 $5,460.44 2002 34 $838.16 (27.24) (26.91) 28.54 (27.88) 25.22 43.26% 0.23 $1,937.21 2001 34 $748.08 (15.79) (15.38) 28.40 (20.42) 25.21 51.69% 1.64 $1,447.19 2000 30 $304.88 (18.38) (17.83) 24.23 (22.42) 22.79 32.22% 1.06 $946.26 1999 5 $171.68 47.57 48.33 21.15 33.16 19.00 23.52% n.m. $730.04 1998 4 $105.21 54.11 54.89 19.54 38.71 17.90 29.77% n.m. $353.35 1997 4 $58.16 30.22 30.88 14.31 30.49 12.62 28.68% n.m. $202.75 1996 2 $25.73 38.12 38.90 11.65 23.12 10.34 18.36% n.m. $140.15 1995 2 $20.66 42.31 43.12 10.92 37.19 9.13 20.83% n.m. $99.17 1994 2 $14.51 3.21 3.77 – 2.66 8.89 24.11% n.m. $60.16 1993 3 $31.21 (0.35) 0.15 – 2.90 12.63 39.24% n.m. $79.53 19922 2 $18.93 5.36 5.78 – 7.40 16.18 28.51% n.m. $66.38

Period Ending Composite Performance Benchmark Performance (Russell 1000® Growth) Composite vs. Benchmark 12/31/11 Net Cumulative Net Annualized Gross Cumulative Gross Annualized Standard Deviation3 Cumulative Annualized Standard Deviation3 Beta3 R-Squared3 1 Year 2.47 2.47 3.02 3.02 n.m. 2.64 2.64 n.m. n.m. n.m. 3 Years 122.20 30.49 125.73 31.18 19.92 64.37 18.02 17.76 1.06 0.90 5 Years 35.91 6.33 39.51 6.89 22.86 13.14 2.50 18.92 1.15 0.91 7 Years 41.70 5.11 46.75 5.63 20.52 29.90 3.81 16.58 1.17 0.89 10 Years 69.32 5.41 77.49 5.91 19.54 29.21 2.60 16.26 1.13 0.88 Since Inception 633.56 10.57 710.24 11.12 20.11 268.13 6.79 17.35 1.10 0.90 Sands Capital Management (“Sands Capital”) is an independent registered investment advisor. Sands Capital claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Sands Capital has been independently verified for the periods February 7, 1992 through September 30, 2011. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Tax-Exempt Institutional Equity Composite (TEIEC) has been examined for the periods February 29, 1992 through September 30, 2011. The verification and performance examination reports are available upon request. The Tax-Exempt Institutional Equity Composite contains all fee-paying, tax-exempt institutional equity accounts managed on a fully discretionary basis and for comparison purposes is measured against the Russell 1000 Growth Index. This composite holds securities that are not included in the Russell 1000® Growth Index, and Sands Capital Management may invest in securities not covered by the Russell 1000® Growth Index. Performance results in presentations prior to January 1, 2002 were measured against the S&P 500 Index. The benchmark was changed to be more representative of the composite strategy, however, information regarding the comparison to the S&P 500 is available upon request. Effective April 1, 1997, the minimum account size for this composite is $3 million. The minimum account size was $1 million from February 7, 1992 through March 31, 1997. Results are based on fully discretionary accounts under management. The annual composite dispersion presented is an asset-weighted standard deviation calculated of performance dispersion for accounts in the composite for the entire year, using beginning of period values. Returns are presented gross and net of management fees and include the reinvestment of all income and cash balances. Net of fee performance was calculated using actual management fees. The U.S. Dollar is the currency used to express performance. Sands Capital’s standard annual fee schedule is 0.75% on the first $50 million of assets under management and 0.50% on assets under management greater than $50 million. In addition to the management fee, some accounts may also pay an incentive fee. Additional information regarding the incentive fee is available upon request. The Select Growth Equity Strategy of the portfolio manager was created and fully invested February 7, 1992. The Tax-Exempt Institutional Equity Composite was created on February 29, 1992. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. A list of composite descriptions is available upon request. Past performance is not indicative of future results. 1 n.m. – Not statistically meaningful, five or less accounts in composite for the entire year. 2 Annual Performance Results reflect partial period performance. The returns are calculated from 2/29/92 to 12/31/92 for both the Tax Exempt Institutional Equity Composite and Russell 1000® Growth Index. 3 n.m. – This statistical analysis is based on quarterly performance numbers and is not relevant for periods less than 3 years. Russell 1000 Growth Index is a trademark of the Frank Russell Company. 32 SGPERD1211 PERFORMANCE ANALYSIS TRAILING PERIODS ENDING MARCH 31, 2012 GROSS RETURNS

20 RATE OF RETURN

0 Latest Quarter 1 Year 3 Years 5 Years 7 Years 10 Years

* MANAGER STYLE OR INVESTMENT STRATEGY REVIEWED BY UBS FS. PLEASE READ “IMPORTANT INFORMATION” SECTION. + THIS INVESTMENT OR STRATEGY IS NOT AVAILABLE THROUGH UBS. SEE "IMPORTANT INFORMATION" SECTION FOR ADDITIONAL INFORMATION.

06/05/2012 1 of 46 PERFORMANCE ANALYSIS TRAILING PERIODS ENDING MARCH 31, 2012 GROSS RETURNS

Latest Quarter 1 Year 3 Years 5 Years 7 Years 10 Years Rainier Invstmnt Growth+ 16.86 8.29 22.58 3.65 7.01 6.10 Bahl & Gaynor LgCap Qual Grow* 9.82 9.94 20.01 5.03 5.62 5.09 Columbia Mgmt Focused LgCapGr* 20.24 7.94 28.82 7.86 10.18 N/A TCW Group ConcentratedCore* 16.01 15.14 26.85 8.64 7.61 6.36 Sands Capital Select Growth* 24.51 22.57 38.77 11.07 10.54 8.53 Rainier and B&G LCG+ 13.21 9.12 21.30 4.39 6.39 5.67 Rainier and Columbia LCG+ 18.50 8.18 25.73 5.79 8.62 N/A Rainier and Sands LCG+ 20.80 15.43 30.68 7.43 8.87 7.39 Rainier and TCW LCG+ 16.42 11.71 24.71 6.21 7.41 6.31 Russell 1000 Growth 14.69 11.02 25.28 5.10 6.49 4.28

06/05/2012 2 of 46 PERFORMANCE ANALYSIS CALENDAR PERIODS ENDING DECEMBER 31, 2011 GROSS RETURNS

0 RATE OF RETURN

-20

-40

-60 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

06/05/2012 3 of 46 PERFORMANCE ANALYSIS CALENDAR PERIODS ENDING DECEMBER 31, 2011 GROSS RETURNS

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rainier Invstmnt Growth+ N/A -25.94 -25.28 35.02 13.24 12.86 9.14 22.70 -42.96 33.28 17.98 -3.16 Bahl & Gaynor LgCap Qual Grow* 6.64 -7.44 -12.57 19.91 11.78 3.61 10.57 8.17 -24.39 19.29 13.13 5.01 Columbia Mgmt Focused LgCapGr* N/A N/A N/A N/A 15.97 13.45 9.20 22.69 -43.53 47.34 25.52 -2.01 TCW Group ConcentratedCore* -4.22 -18.81 -28.81 51.47 13.54 4.91 -4.28 14.91 -36.46 43.81 17.75 5.02 Sands Capital Select Growth* -17.81 -15.38 -26.91 36.71 20.98 10.99 -5.23 19.73 -48.40 72.23 27.22 3.02 Rainier and B&G LCG+ N/A -15.20 -19.06 27.23 12.54 8.38 9.97 15.28 -34.06 25.74 15.57 0.91 Rainier and Columbia LCG+ N/A N/A N/A N/A 14.59 13.16 9.17 22.72 -43.20 40.15 21.72 -2.44 Rainier and Sands LCG+ N/A -20.89 -26.09 35.85 17.06 11.96 1.78 21.23 -45.70 51.95 22.58 -0.07 Rainier and TCW LCG+ N/A -22.33 -27.01 43.01 13.38 8.84 2.35 18.87 -39.66 38.67 17.86 0.91 Russell 1000 Growth -22.42 -20.42 -27.88 29.75 6.30 5.26 9.07 11.81 -38.44 37.21 16.71 2.64

06/05/2012 4 of 46 QUARTILE RANKING ANALYSIS PSN LARGE CAP GROWTH TRAILING PERIODS ENDING MARCH 31, 2012

-10

RATE OF RETURN RANKING 80

100

110

Latest Quarter 1 Year 2 Years 3 Years 5 Years 7 Years 10 Years HIGH (0.05) 19.72 15.67 18.56 29.23 8.50 10.17 8.30 FIRST QUARTILE 16.86 11.22 14.84 25.39 5.92 7.28 6.22 MEDIAN 15.24 8.94 13.29 23.74 4.81 6.44 5.22 THIRD QUARTILE 13.89 6.54 11.42 21.72 3.76 5.62 4.38 LOW (0.95) 9.38 0.28 8.02 18.94 1.24 3.91 3.12 MEAN 15.32 8.67 13.21 23.63 4.81 6.54 5.34 VALID COUNT 291 290 287 286 271 247 204

06/05/2012 5 of 46 QUARTILE RANKING ANALYSIS PSN LARGE CAP GROWTH TRAILING PERIODS ENDING MARCH 31, 2012

Latest Quarter 1 Year 2 Years 3 Years 5 Years 7 Years 10 Years VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK Rainier Invstmnt Growth+ 16.86 25 8.29 56 12.93 54 22.58 64 3.65 77 7.01 35 6.10 26 Bahl & Gaynor LgCap Qual Grow* 9.82 99 9.94 37 12.54 60 20.01 93 5.03 43 5.62 75 5.09 54 Columbia Mgmt Focused LgCapGr* 20.24 1 7.94 61 18.51 1 28.82 2 7.86 2 10.18 1 N/A N/A TCW Group ConcentratedCore* 16.01 39 15.14 3 17.66 2 26.85 9 8.64 1 7.61 19 6.36 21 Sands Capital Select Growth* 24.51 1 22.57 1 25.60 1 38.77 1 11.07 1 10.54 1 8.53 1 Rainier and B&G LCG+ 13.21 83 9.12 48 12.74 57 21.30 82 4.39 60 6.39 51 5.67 35 Rainier and Columbia LCG+ 18.50 8 8.18 57 15.77 12 25.73 19 5.79 29 8.62 7 N/A N/A Rainier and Sands LCG+ 20.80 1 15.43 1 19.27 1 30.68 1 7.43 6 8.87 4 7.39 5 Rainier and TCW LCG+ 16.42 34 11.71 17 15.30 18 24.71 34 6.21 18 7.41 22 6.31 22 Russell 1000 Growth 14.69 63 11.02 26 14.58 32 25.28 26 5.10 42 6.49 49 4.28 77

06/05/2012 6 of 46 QUARTILE RANKING ANALYSIS PSN LARGE CAP GROWTH CALENDAR PERIODS ENDING MARCH 31, 2012

-10

RATE OF RETURN RANKING 80

100

110

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 HIGH (0.05) 19.72 25.52 51.32 -27.92 27.07 16.87 16.56 18.94 49.21 -11.72 0.65 FIRST QUARTILE 16.86 19.06 38.80 -34.96 19.67 12.08 10.93 12.98 33.81 -20.02 -11.04 MEDIAN 15.24 16.27 34.94 -37.84 14.91 9.61 8.15 10.25 29.98 -23.68 -15.38 THIRD QUARTILE 13.89 13.75 30.29 -40.53 10.74 6.93 5.24 7.43 26.46 -27.39 -20.79 LOW (0.95) 9.38 10.33 20.32 -48.70 4.65 2.08 1.52 4.15 20.35 -33.12 -29.87 MEAN 15.32 16.51 34.89 -37.88 15.12 9.51 8.33 10.53 30.67 -23.42 -15.80 VALID COUNT 291 306 304 298 282 275 260 243 231 216 203

06/05/2012 7 of 46 QUARTILE RANKING ANALYSIS PSN LARGE CAP GROWTH CALENDAR PERIODS ENDING MARCH 31, 2012

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK Rainier Invstmnt Growth+ 16.86 25 17.98 32 33.28 59 -42.96 87 22.70 12 9.14 52 12.86 13 13.24 22 35.02 21 -25.28 61 -25.94 92 Bahl & Gaynor LgCap Qual Grow* 9.82 99 13.13 80 19.29 99 -24.39 1 8.17 88 10.57 40 3.61 91 11.78 36 19.91 99 -12.57 2 -7.44 11 Columbia Mgmt Focused LgCapGr* 20.24 1 25.52 1 47.34 4 -43.53 90 22.69 13 9.20 51 13.45 10 15.97 11 N/A N/A N/A N/A N/A N/A TCW Group ConcentratedCore* 16.01 39 17.75 33 43.81 11 -36.46 35 14.91 50 -4.28 99 4.91 78 13.54 20 51.47 1 -28.81 86 -18.81 65 Sands Capital Select Growth* 24.51 1 27.22 1 72.23 1 -48.40 99 19.73 24 -5.23 99 10.99 23 20.98 1 36.71 14 -26.91 70 -15.38 50 Rainier and B&G LCG+ 13.21 83 15.57 55 25.74 89 -34.06 18 15.28 46 9.97 48 8.38 46 12.54 27 27.23 70 -19.06 20 -15.20 48 Rainier and Columbia LCG+ 18.50 8 21.72 10 40.15 20 -43.20 88 22.72 12 9.17 52 13.16 12 14.59 15 N/A N/A N/A N/A N/A N/A Rainier and Sands LCG+ 20.80 1 22.58 7 51.95 1 -45.70 96 21.23 17 1.78 99 11.96 18 17.06 6 35.85 16 -26.09 65 -20.89 76 Rainier and TCW LCG+ 16.42 34 17.86 33 38.67 25 -39.66 66 18.87 27 2.35 98 8.84 42 13.38 22 43.01 3 -27.01 72 -22.33 82 Russell 1000 Growth 14.69 63 16.71 46 37.21 34 -38.44 54 11.81 67 9.07 54 5.26 74 6.30 85 29.75 53 -27.88 80 -20.42 73

06/05/2012 8 of 46 TOTAL RISK REWARD ANALYSIS 3 YEAR PERIOD ENDING MARCH 31, 2012 GROSS RETURNS

More Return More Return Less Risk More Risk

30 RATE OF RETURN

25 Russell 1000 Growth

Less Return Less Return Less Risk More Risk 15 16 17 18 19 20 21 22 23 STANDARD DEVIATION

RISK BENCHMARK USED FOR THIS ANALYSIS: RUSSELL 1000 GROWTH * MANAGER STYLE OR INVESTMENT STRATEGY REVIEWED BY UBS FS. PLEASE READ “IMPORTANT INFORMATION” SECTION. + THIS INVESTMENT OR STRATEGY IS NOT AVAILABLE THROUGH UBS. SEE "IMPORTANT INFORMATION" SECTION FOR ADDITIONAL INFORMATION.

06/05/2012 9 of 46 TOTAL RISK REWARD ANALYSIS 3 YEAR PERIOD ENDING MARCH 31, 2012 GROSS RETURNS

ROR Std Dev Pop Alpha Beta R-Squared Rainier Invstmnt Growth+ 22.58 20.17 -3.36 1.06 0.97 Bahl & Gaynor LgCap Qual Grow* 20.01 15.61 -0.41 0.81 0.96 Columbia Mgmt Focused LgCapGr* 28.82 22.51 -0.10 1.15 0.93 TCW Group ConcentratedCore* 26.85 18.01 2.49 0.95 0.98 Sands Capital Select Growth* 38.77 22.65 7.91 1.16 0.93 Rainier and B&G LCG+ 21.30 17.72 -1.90 0.93 0.98 Rainier and Columbia LCG+ 25.73 21.17 -1.71 1.10 0.96 Rainier and Sands LCG+ 30.68 21.27 2.23 1.11 0.96 Rainier and TCW LCG+ 24.71 19.04 -0.46 1.00 0.98 Russell 1000 Growth 25.28 18.83 0.00 1.00 1.00

06/05/2012 10 of 46 TOTAL RISK REWARD ANALYSIS 5 YEAR PERIOD ENDING MARCH 31, 2012 GROSS RETURNS

12 More Return More Return Less Risk More Risk

7 RATE OF RETURN 6

5 Russell 1000 Growth

Less Return Less Return 3 Less Risk More Risk 17 22 27 32 STANDARD DEVIATION

06/05/2012 11 of 46 TOTAL RISK REWARD ANALYSIS 5 YEAR PERIOD ENDING MARCH 31, 2012 GROSS RETURNS

ROR Std Dev Pop Alpha Beta R-Squared Rainier Invstmnt Growth+ 3.65 23.24 -1.37 1.06 0.97 Bahl & Gaynor LgCap Qual Grow* 5.03 17.46 0.65 0.76 0.89 Columbia Mgmt Focused LgCapGr* 7.86 25.20 2.76 1.13 0.93 TCW Group ConcentratedCore* 8.64 20.91 3.55 0.95 0.96 Sands Capital Select Growth* 11.07 27.86 5.83 1.25 0.93 Rainier and B&G LCG+ 4.39 19.92 -0.46 0.91 0.98 Rainier and Columbia LCG+ 5.79 24.06 0.68 1.10 0.97 Rainier and Sands LCG+ 7.43 25.39 2.21 1.16 0.97 Rainier and TCW LCG+ 6.21 21.97 1.12 1.01 0.98 Russell 1000 Growth 5.10 21.55 0.00 1.00 1.00

06/05/2012 12 of 46 TOTAL RISK REWARD ANALYSIS 7 YEAR PERIOD ENDING MARCH 31, 2012

11 More Return More Return Less Risk More Risk

8 RATE OF RETURN

Russell 1000 Growth

Less Return Less Return Less Risk More Risk 14 19 24 STANDARD DEVIATION

06/05/2012 13 of 46 TOTAL RISK REWARD ANALYSIS 7 YEAR PERIOD ENDING MARCH 31, 2012

ROR Std Dev Pop Alpha Beta R-Squared Rainier Invstmnt Growth+ 7.01 20.06 0.45 1.06 0.96 Bahl & Gaynor LgCap Qual Grow* 5.62 14.91 0.05 0.76 0.88 Columbia Mgmt Focused LgCapGr* 10.18 21.70 3.41 1.13 0.93 TCW Group ConcentratedCore* 7.61 18.17 1.26 0.95 0.93 Sands Capital Select Growth* 10.54 24.13 3.60 1.25 0.90 Rainier and B&G LCG+ 6.39 17.06 0.21 0.91 0.98 Rainier and Columbia LCG+ 8.62 20.73 1.93 1.10 0.96 Rainier and Sands LCG+ 8.87 21.87 2.04 1.16 0.95 Rainier and TCW LCG+ 7.41 18.93 0.92 1.01 0.96 Russell 1000 Growth 6.49 18.45 0.00 1.00 1.00

06/05/2012 14 of 46 UPSIDE VS. DOWNSIDE MARKET CAPTURE ANALYSIS 3 YEAR PERIOD ENDING MARCH 31, 2012

Outperforms in Underperforms in Neg. Qtrs. Pos. & Neg. Qtrs. Outperforms in Pos. Qtrs. 150

125

100 Russell 1000 Growth

50 UPSIDE CAPTURE RATIO

90 Day U.S. Treasury Bill 0

Underperforms in Pos. Qtrs. Underperforms in Outperforms in Neg. Qtrs. Pos. & Neg. Qtrs. -25 0 25 50 75 100 125 DOWNSIDE CAPTURE RATIO

06/05/2012 15 of 46 UPSIDE VS. DOWNSIDE MARKET CAPTURE ANALYSIS 3 YEAR PERIOD ENDING MARCH 31, 2012

Up Mkt Capt Retrn Up Cap Ratio Dnside Cap Return Dnside Cap Ratio R-Squared Rainier Invstmnt Growth+ 44.13 96.45 -26.15 112.05 0.97 Bahl & Gaynor LgCap Qual Grow* 36.65 80.11 -20.82 89.21 0.96 Columbia Mgmt Focused LgCapGr* 53.76 117.50 -27.08 116.04 0.93 TCW Group ConcentratedCore* 46.01 100.55 -20.76 88.95 0.98 Sands Capital Select Growth* 62.43 136.45 -20.53 87.97 0.93 Rainier and B&G LCG+ 40.34 88.16 -23.50 100.68 0.98 Rainier and Columbia LCG+ 48.96 107.00 -26.60 113.97 0.96 Rainier and Sands LCG+ 53.33 116.57 -23.35 100.05 0.96 Rainier and TCW LCG+ 45.05 98.46 -23.46 100.50 0.98 Russell 1000 Growth 45.75 100.00 -23.34 100.00 1.00

06/05/2012 16 of 46 UPSIDE VS. DOWNSIDE MARKET CAPTURE ANALYSIS 5 YEAR PERIOD ENDING MARCH 31, 2012

Outperforms in Underperforms in Neg. Qtrs. Pos. & Neg. Qtrs. Outperforms in Pos. Qtrs. 152

127

102 Russell 1000 Growth

52 UPSIDE CAPTURE RATIO

90 Day U.S. Treasury Bill 2

Underperforms in Pos. Qtrs. Underperforms in Outperforms in Neg. Qtrs. Pos. & Neg. Qtrs. -3 22 47 72 97 122 DOWNSIDE CAPTURE RATIO

06/05/2012 17 of 46 UPSIDE VS. DOWNSIDE MARKET CAPTURE ANALYSIS 5 YEAR PERIOD ENDING MARCH 31, 2012

Up Mkt Capt Retrn Up Cap Ratio Dnside Cap Return Dnside Cap Ratio R-Squared Rainier Invstmnt Growth+ 39.73 102.82 -40.47 108.90 0.97 Bahl & Gaynor LgCap Qual Grow* 30.75 79.59 -30.08 80.93 0.89 Columbia Mgmt Focused LgCapGr* 45.68 118.23 -38.28 103.01 0.93 TCW Group ConcentratedCore* 41.51 107.43 -33.51 90.16 0.96 Sands Capital Select Growth* 53.68 138.93 -39.23 105.55 0.93 Rainier and B&G LCG+ 35.18 91.06 -35.41 95.29 0.98 Rainier and Columbia LCG+ 42.75 110.64 -39.36 105.91 0.97 Rainier and Sands LCG+ 46.79 121.09 -39.83 107.18 0.97 Rainier and TCW LCG+ 40.61 105.10 -36.92 99.36 0.98 Russell 1000 Growth 38.64 100.00 -37.16 100.00 1.00

06/05/2012 18 of 46 UPSIDE VS. DOWNSIDE MARKET CAPTURE ANALYSIS 7 YEAR PERIOD ENDING MARCH 31, 2012

157 Outperforms in Underperforms in Neg. Qtrs. Pos. & Neg. Qtrs. Outperforms in Pos. Qtrs.

132

107

Russell 1000 Growth

57 UPSIDE CAPTURE RATIO 32

90 Day U.S. Treasury Bill 7

Underperforms in Pos. Qtrs. Underperforms in Outperforms in Neg. Qtrs. Pos. & Neg. Qtrs. -29 -4 21 46 71 96 121 DOWNSIDE CAPTURE RATIO

06/05/2012 19 of 46 UPSIDE VS. DOWNSIDE MARKET CAPTURE ANALYSIS 7 YEAR PERIOD ENDING MARCH 31, 2012

Up Mkt Capt Retrn Up Cap Ratio Dnside Cap Return Dnside Cap Ratio R-Squared Rainier Invstmnt Growth+ 33.05 111.96 -37.93 109.25 0.96 Bahl & Gaynor LgCap Qual Grow* 22.48 76.15 -27.07 77.96 0.88 Columbia Mgmt Focused LgCapGr* 37.21 126.06 -36.33 104.65 0.93 TCW Group ConcentratedCore* 29.20 98.91 -31.88 91.82 0.93 Sands Capital Select Growth* 39.15 132.62 -37.83 108.97 0.90 Rainier and B&G LCG+ 27.73 93.96 -32.64 94.03 0.98 Rainier and Columbia LCG+ 35.16 119.11 -37.11 106.89 0.96 Rainier and Sands LCG+ 36.25 122.79 -37.86 109.04 0.95 Rainier and TCW LCG+ 31.17 105.60 -34.83 100.32 0.96 Russell 1000 Growth 29.52 100.00 -34.72 100.00 1.00

06/05/2012 20 of 46 MULTI-STATISTIC QUARTILE RANKING BAR PSN LARGE CAP GROWTH MARCH 31, 2009 TO MARCH 31, 2012

45 1.1 15 14 -2 2.0

15 -1 40 0.8 10 16 0

1.0 1 1.0 35 0.9 17 5 2 18

30 1.0 3 19 0.9 0 4 0.0 20 25 1.1 5 21 -5 6 20 1.2 22 0.8 7 -1.0

-10 23 8 15 1.3 24 9

10 1.4 -15 25 10 -2.0

ROR R-Squared Beta Alpha Std Dev Pop Tracking Error Pop Info Ratio Pop HIGH (0.95) 29.23 0.99 0.81 3.67 15.95 1.89 0.81 1st QUARTILE 25.39 0.98 0.96 0.07 18.39 3.12 0.05 MEDIAN 23.74 0.97 1.02 -1.57 19.68 3.94 -0.40 3rd QUARTILE 21.72 0.95 1.08 -3.26 20.81 5.29 -0.90 LOW (0.05) 18.94 0.88 1.21 -6.43 23.29 8.09 -1.77 MEAN 23.63 0.96 1.02 -1.57 19.62 4.24 -0.43 VALID COUNT 286 286 286 286 286 286 286

06/05/2012 21 of 46 MULTI-STATISTIC QUARTILE RANKING BAR PSN LARGE CAP GROWTH MARCH 31, 2009 TO MARCH 31, 2012

VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK Rainier Invstmnt Growth+ 22.58 64 0.97 44 1.06 65 -3.36 75 20.17 62 3.62 40 -0.75 69 Bahl & Gaynor LgCap Qual Gr 20.01 93 0.96 60 0.81 1 -0.41 32 15.61 1 4.69 66 -1.12 84 Columbia Mgmt Focused LgC 28.82 2 0.93 83 1.15 94 -0.10 26 22.51 94 6.56 92 0.54 8 TCW Group ConcentratedCor 26.85 9 0.98 24 0.95 23 2.49 5 18.01 19 2.74 15 0.57 6 Sands Capital Select Growth* 38.77 1 0.93 86 1.16 94 7.91 1 22.65 95 6.80 94 1.98 1 Rainier and B&G LCG+ 21.30 82 0.98 19 0.93 18 -1.90 54 17.72 15 2.69 14 -1.48 93 Rainier and Columbia LCG+ 25.73 19 0.96 57 1.10 85 -1.71 52 21.17 83 4.47 62 0.10 21 Rainier and Sands LCG+ 30.68 1 0.96 57 1.11 85 2.23 6 21.27 84 4.54 64 1.19 1 Rainier and TCW LCG+ 24.71 34 0.98 26 1.00 41 -0.46 33 19.04 38 2.78 16 -0.20 37 Russell 1000 Growth 25.28 26 1.00 1 1.00 41 0.00 25 18.83 33 0.00 1 0.00 26

06/05/2012 22 of 46 MULTI-STATISTIC QUARTILE RANKING BAR PSN LARGE CAP GROWTH MARCH 31, 2007 TO MARCH 31, 2012

13 1.1 7 10 -2 1.0

12 6 -1 0.7 11 5 0 15 10 1 1.0 0.8 4 9 2 3 8 0.9 3 2 20 7 4 0.9 1.0 1 0.0 6 5 0 25 5 1.1 6 -1 4 7 0.8 1.2 -2 3 8 30 2 -3 9 1.3 1 -4 10

0 1.4 -5 35 11 -1.0

ROR R-Squared Beta Alpha Std Dev Pop Tracking Error Pop Info Ratio Pop HIGH (0.95) 8.50 0.99 0.81 3.55 18.19 2.62 0.61 1st QUARTILE 5.92 0.97 0.94 1.04 20.75 3.88 0.19 MEDIAN 4.81 0.96 1.00 -0.15 22.17 4.88 -0.07 3rd QUARTILE 3.76 0.93 1.06 -1.13 23.30 6.58 -0.27 LOW (0.05) 1.24 0.84 1.19 -3.55 27.21 9.90 -0.73 MEAN 4.81 0.95 1.00 -0.08 22.16 5.29 -0.06 VALID COUNT 271 271 271 271 271 271 271

06/05/2012 23 of 46 MULTI-STATISTIC QUARTILE RANKING BAR PSN LARGE CAP GROWTH MARCH 31, 2007 TO MARCH 31, 2012

VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK VALUE RANK Rainier Invstmnt Growth+ 3.65 77 0.97 20 1.06 78 -1.37 81 23.24 75 3.93 26 -0.37 84 Bahl & Gaynor LgCap Qual Gr 5.03 43 0.89 94 0.76 1 0.65 33 17.46 1 7.84 89 -0.01 42 Columbia Mgmt Focused LgC 7.86 2 0.93 74 1.13 95 2.76 4 25.20 94 7.08 83 0.39 8 TCW Group ConcentratedCor 8.64 1 0.96 37 0.95 27 3.55 1 20.91 29 4.07 29 0.87 1 Sands Capital Select Growth* 11.07 1 0.93 77 1.25 99 5.83 1 27.86 99 9.17 97 0.65 1 Rainier and B&G LCG+ 4.39 60 0.98 16 0.91 15 -0.46 60 19.92 12 3.61 19 -0.20 67 Rainier and Columbia LCG+ 5.79 29 0.97 35 1.10 87 0.68 32 24.06 83 4.92 52 0.14 28 Rainier and Sands LCG+ 7.43 6 0.97 36 1.16 99 2.21 8 25.39 96 5.83 67 0.40 8 Rainier and TCW LCG+ 6.21 18 0.98 16 1.01 52 1.12 23 21.97 47 3.39 15 0.33 11 Russell 1000 Growth 5.10 42 1.00 1 1.00 47 0.00 46 21.55 39 0.00 1 0.00 42

06/05/2012 24 of 46 RAINIER INVESTMENT MANAGEMENT, INC. LARGE CAP GROWTH EQUITY

152 West 57th Street, 9th Floor TEL: 212-265-2661 New York, NY, 10019 FAX: 646-340-1111 CONTACT: Mr. Kurt A. Polk, CFA PRODUCT ASSETS: $ 4,943.28 MILLION

EQUITY INVESTMENT PHILOSOPHY - We between 150-200 stocks are under evaluation as identify attractive securities using a bottom-up stock candidates for purchase, and between 40 and 80 selection discipline. This is based on our belief that at companies may be held as current investments. any given time, the overall US equity market is Sectors, industry and individual security decisions are efficiently priced, but that pricing inefficiencies exist made within the context of a bottom-up process and between various stocks that comprise the overall based on several factors: * We emphasize investing in market. We believe, and our results have shown, that a companies that are likely to demonstrate superior consistent process focused on identifying and earnings momentum relative to their peers. * Positive exploiting mispriced securities can lead to consistent earnings surprises and estimate revisions are outperformance versus the average market return and emphasized. We anticipate the future direction of our peers. Performance attribution confirms that changes. * Our preference is to invest in stocks that are security selection decisions are accountable for 80-90% selling at attractive valuations. We use three proprietary of historical excess returns, with sector allocation value screens. * Strong management with a significant decisions, which are a residual of our process, being ownership in the company is desired. * Companies that attributed to the remainder. Rainier employs a exhibit advantageous competitive strategies or operate fundamental research based investment approach, in favorable competitive environments are stressed. * augmented by proprietary quantitative tools. The We favor companies with balance sheet integrity and quantitative tools provide a common framework for financial strength. * Securities must have a minimum each stock analyzed, and enable all portfolio managers of $5 million in average daily trading volume to ensure to evaluate every stock held in client portfolios, and sufficient trading liquidity. those under consideration by each team member. The tools also assist in the process of narrowing down the PORTFOLIO CONSTRUCTION - Individual stock investable universe of stocks to a subset of companies weights depend upon our assessment of the risk that exhibit the growth and valuation measures that the characteristics of the particular stock. As a general team believes offers the most compelling investment guideline, no single issue will account for more than ideas given our investment discipline. 7% of the total portfolio. The portfolios are diversified by economic sector and are limited to the index sector INVESTMENT DECISION-MAKING PROCESS - In weighting +/- 10% in absolute terms. We will invest a choosing investments for its portfolios, Rainier seeks to maximum of 35% in any single sector. We do not identify companies with above average attempt to time the market. Cash equivalents normally earnings-per-share growth rates selling at reasonable make up less than 5% of the portfolio and are a residual valuations relative to their industry peers. The universe of the investment process. is comprised of the aggregate list of all portfolio managers' working lists of stock ideas of companies KEY INVESTMENT OFFICER: with market capitalizations and characteristics similar to those contained within the Russell 1000 Growth TEAM APPROACH index. Only stocks with market capitalizations above $2 billion are considered, with an emphasis on stocks Mr. Mark Hamilton Dawson with capitalizations greater than $5 billion. The Current Position: Principal, PM, 1996 - PRESENT portfolio managers regularly screen a broad universe of Current Firm: Rainier Investment Management, Inc. stocks, scanning BaseLine and other data sources, and Responsibility: Equity Portfolio Manager; Balanced eliminating stocks of companies that do not meet Portfolio Manager; Research Analyst earnings, quality or liquidity requirements; only Professional Accreditation: CFA common stock is considered. A working universe of Education Undergraduate: University of Washington, companies is analyzed for important fundamentals such BA, History as revenue and earnings growth, as well as the Education Graduate: Tufts University, MA, valuation of a company relative to the market, industry International Relations peers, and its own price history. The working universe Year of Birth: 1956 typically distils to 800-1,000 securities. Data on the Phone: fundamentals of selected stocks are evaluated in our email: proprietary tracking and valuation system, where Previous Position: 1991-1996

06/05/2012 25 of 46 RAINIER INVESTMENT MANAGEMENT, INC. LARGE CAP GROWTH EQUITY

Company: Badgley, Phelps and Bell Phone: Title: PM, Director of Research email: Previous Position: - Company: Mr. James Richard Margard Title: Current Position: Principal, Portfolio Man, 1985 - PRESENT Current Firm: Rainier Investment Management, Inc. Mr. Mark W. Broughton Responsibility: Chief Investment officer; Equity Current Position: Senior Portfolio Manager, 2002 - Portfolio Manager; Balanced Portfolio Manager; PRESENT Director of Research Current Firm: Rainier Investment Management, Inc. Professional Accreditation: CFA Responsibility: Equity Portfolio Manager; Balanced Education Undergraduate: University of New Mexico, Portfolio Manager; Research Analyst BA - Spanish Professional Accreditation: CFA Education Graduate: NYU, MA; MBA - Finance Education Graduate: University of Southern California, Year of Birth: 1952 MBA - Finance Phone: Year of Birth: 1966 email: Phone: Previous Position: 1980-1985 email: Company: ValueLine, Inc. Previous Position: - Title: Inv. Research, Portfolio Company: Title:

Mr. Peter Morgan Musser Current Position: Principal, Portfolio Man, 1994 - Stacie L. Cowell PRESENT Current Position: Senior Equity Manager, 2006 - Current Firm: Rainier Investment Management, Inc. PRESENT Responsibility: Equity Portfolio Manager; Balanced Current Firm: Rainier Investment Management Portfolio Manager; Research Analyst Responsibility: Equity Portfolio Manager; Balanced Professional Accreditation: CFA Portfolio Manager; Research Analyst Education Undergraduate: Lawrence University, BA - Professional Accreditation: CFA Economics Education Undergraduate: Colgate University, Year of Birth: 1956 Bachelor of Science, Economics Phone: Education Graduate: University of Colorado, Master of email: Science, Finance Previous Position: 1984-1994 Phone: 206-464-0400 Company: Ragen MacKenzie, Inc./Cable, Howse & email: Rag Previous Position: -2006 Title: Sr. VP - Res. Company: Invesco Funds Group Title: Senior VP, Lead PM

Mr. Daniel M. Brewer Current Position: Senior Portfolio Manager, 2000 - Mr. Andrea L. Durbin PRESENT Current Position: Sr. Equity PM, 2007 - PRESENT Current Firm: Rainier Investment Management, Inc. Current Firm: Rainier Investment Management, Inc. Responsibility: Equity Portfolio Manager; Balanced Responsibility: Equity Portfolio Manager Portfolio Manager; Research Analyst Professional Accreditation: CFA Professional Accreditation: CFA Education Undergraduate: University of Minnesota, BS Education Undergraduate: California State University, Year of Birth: 1969 Fullerton, BA Year Entered Industry: 1986 Year of Birth: 1965 Phone:

06/05/2012 26 of 46 RAINIER INVESTMENT MANAGEMENT, INC. LARGE CAP GROWTH EQUITY

email: Class I: RLGIX Previous Position: - Company: Blackrock Financial Management COMMINGLED FUND: Rainier Large Cap Growth Title: Equity Collective Trust Fund. Rainier acts as subadvisor. SEI Investments Company, as trustee, has ultimate responsibility for all investment Ms. Carlee J Price decisions for the CIT.; Min Acct Size: $5 million; Min Current Position: Sr. Equity PM, 2008 - PRESENT Fee: N/A Current Firm: Rainier Investment Management, Inc. Responsibility: Equity Portfolio Manager Professional Accreditation: CFA Education Undergraduate: University of British LAST MODIFIED ON: 2/16/2012 Columbia, BA Year Entered Industry: 1994 Phone: email: Previous Position: 2000-2008 Company: Franklin Templeton Title: VP and Equities Analyst

Mr. Michael Emery Current Position: Sr. Equity PM, 2008 - PRESENT Current Firm: Rainier Investment Management Responsibility: Equity Portfolio Manager Professional Accreditation: CFA Education Undergraduate: University of Washington, BA Education Graduate: Cornell University, MBA Year Entered Industry: 1995 Phone: email: Previous Position: - Company: Title:

FEES AND MINIMUM ACCOUNT:

SEPARATE ACCT: 0.75% on the first $10 million of assets 0.50% on the balance

Fees may be negotiable, depending on the size of the account.; Min Acct Size: $25 million

MUTUAL FUND: The John Hancock Rainier Growth Fund is available through John Hancock Funds. Rainier is the subadvisor to the fund.

Class A: RGROX

06/05/2012 27 of 46 BAHL & GAYNOR, INC. LARGE CAP QUALITY GROWTH

212 E. Third Street, Suite 200 TEL: 513-287-6132 Cincinnati, OH, 45202 FAX: 513-287-6110 CONTACT: Mr. Matthew D. McCormick PRODUCT ASSETS: $ 2,902.27 MILLION

EQUITY INVESTMENT PHILOSOPHY - Bahl & characteristics. The fundamental research is Gaynor is a large capitalization growth manager that conducted by our senior portfolio managers who also employs a “Growth at a Reasonable Price” discipline to have sector responsibilities. Extensive field research is purchase superior stocks at sensible valuations. This conducted on all working list securities or new issues strategy allows B&G to provide superior performance being considered. Research sources include while at the same time preserving capital in declining management contacts, Wall Street research and markets. In addition, our emphasis on dividend growth contacts, Baseline, HOLT Value, Factset, and has led us to high quality companies with strong Bloomberg. Bahl & Gaynor makes every attempt to balance sheets. Bahl & Gaynor’s approach targets visit all companies we are analyzing where we believe dominant companies that have a clear competitive we can gain insight into that company. Thorough advantage and effective shareholder friendly analysis of all balance sheets is required. A principal management with a large insider ownership. Our research output is determining the quality and stocks usually have the ability to price their capability of a company’s senior management. In products/services significantly above their costs and addition, we are devoted to assessing the future growth reinvest their profitability back into their businesses. and predictability of a firm’s cash flow. 40 to 50 For over 19 years, Bahl & Gaynor has specialized in companies compose our normal portfolio. The stocks that have a dividend and grow it regularly. We decision-making authority and accountability is divided are long term investors and prefer to own companies evenly within the portfolio managers group. Frequent that can double earnings in five to seven years through peer reviews help maintain high correlation with the various economic cycles. model portfolio, control risk, and reduce performance variability. Bahl & Gaynor’s very low dispersion is a INVESTMENT DECISION-MAKING PROCESS - direct result of our peer review process. Risk Bahl & Gaynor is a large capitalization growth attribution analyses are performed on a weekly basis manager that employs a “Growth at a Reasonable through monitoring of each stock’s relative Price” discipline to purchase superior stocks at sensible performance and risk profile. In addition, we limit the valuations. This strategy allows B&G to provide size of the individual holdings to 5% at cost, and superior performance while at the same time preserving sectors to two times the Standard & Poor’s 500 capital in declining markets. In addition, our unique benchmark (or other client directed – usually Russell emphasis on dividend growth has led us to high quality 1000 Growth – index) to ensure proper diversification. companies with strong balance sheets. Bahl & Finally, we will sell or trim our equity positions for the Gaynor’s approach targets dominant companies that following reasons: * Valuations that rise to exceed have a clear competitive advantage and effective historic norms may trigger a reduction or elimination in shareholder friendly management with a large insider stock * Appreciation of a stock position to an oversized ownership. Our stocks usually have the ability to price weighting * New or increasing competition that their products/services significantly above their costs materially changes competitive landscape * Declining and reinvest their profitability back into their cash flow return on investment * Declining or negative businesses. For over 19 years, Bahl & Gaynor has operating cash flow * Dividend cut or no dividend specialized in stocks that have a dividend and grow it increase for an extended period of time * Unexpected regularly. We prefer to own companies that are change in management or ownership of a company * “perpetual growth machines.” These “total return” Large increase in debt * Large acquisition * Unusual investments post consistent above-average earnings and insider selling * Quality of earnings degradation, or dividend growth over long periods of time and various accounting issues that questions earning’s reliability economic cycles. It is our opinion that the demand for our approach will increase, in part, due to the recent tax PORTFOLIO CONSTRUCTION - Portfolios are law changes which are more beneficial to dividends constructed using a model as a template and adapted to Our stock selection process begins by quantitatively the specific constraints of each client if needed. The screening a 15,500+ Baseline stock universe primarily investment decision is primary. As names are added or for financial and quality characteristics. We further deleted consideration is given to overall sector. We do screen the remaining 300+ issues for investment merit. not require a level of investment in any sector; but limit The approximately 150 remaining names are maximum exposure to two times the sector weight with fundamentally investigated for risk/reward an absolute maximum of 25%. Initial positions are

06/05/2012 28 of 46 BAHL & GAYNOR, INC. LARGE CAP QUALITY GROWTH

bought in the 0.5%-2.5% weightings and trimming begins at the 5% level. We remain fully invested at most times and enjoy low portfolio turnover in the 15-25% range per year. Equity portfolios hold 40-50 LAST MODIFIED ON: 5/10/2012 individual securities.

KEY INVESTMENT OFFICER:

TEAM APPROACH

Vere W. Gaynor Current Position: Chairman, Portfolio Mgr, 1990 - PRESENT Current Firm: Bahl & Gaynor Investment Counsel Responsibility: Equity Portfolio Manager Professional Accreditation: Education Undergraduate: Columbia University, BA Education Graduate: Columbia University, MBA Year of Birth: 1947 Year Entered Industry: 1971 Phone: 513-287-6116 email: [email protected] Previous Position: 1973-1990 Company: Scudder, Stevens & Clark Title: Managing Director

William F. Bahl Current Position: President, Portfolio Mgr, 1990 - PRESENT Current Firm: Bahl & Gaynor Investment Counsel Responsibility: Equity Portfolio Manager Professional Accreditation: CFA, CIC Education Undergraduate: University of Florida, BBA Education Graduate: University of Michigan, MBA Year of Birth: 1951 Year Entered Industry: 1974 Phone: 513-287-6115 email: [email protected] Previous Position: 1985-1990 Company: Northern Trust Company Title: Chief Investment Officer

FEES AND MINIMUM ACCOUNT:

SEPARATE ACCT: First $1 million at 0.9% Next $1 million at 0.8% Next $2 million at 0.7% Next $1 million at 0.6% and the balance at 0.5%; Min Fee: $7,000

06/05/2012 29 of 46 COLUMBIA MANAGEMENT COLUMBIA FOCUSED LARGE CAP GROWTH

225 Franklin Street TEL: 617-747-0441 Boston, MA, 02111 FAX: CONTACT: Ms. Kathleen A. Kennedy PRODUCT ASSETS: $ 8,826.40 MILLION

EQUITY INVESTMENT PHILOSOPHY - The sheets, excellent management, accelerating earnings Columbia Focused Large Cap Growth Team believes growth, and a strong commitment to shareholder value. that earnings growth is the critical driver of stock prices The Team screens the universe of publicly traded over the long term. They believe that through companies (over 10,000) for the most attractive growth fundamental research, they can identify outstanding stocks by using these criteria: -Market capitalization > companies having dominant industry positions, strong US$3 billion -Earnings growth rate >12% or double the financials, and consistently high earnings growth rates. growth rate of the S&P 500 Index -Return on equity In the portfolio construction process, they select what >15% This results in a focused universe of they feel are the best growth companies in the best approximately 250 qualified growth companies. The growth industries. They look to exploit market Team makes investment decisions based on bottom-up anomalies and inefficiencies by unearthing companies analysis, and allow for significant position weights for capable of sustaining faster growth longer than individual holdings based on their level of conviction in consensus expects. Since the team manages a the underlying company. The Team relies on concentrated portfolio of 25-35 holdings, they pay fundamental research to build portfolios, company by close attention to the risk involved in each of their company. They limit the portfolio market value of any holdings. Their long-term focus allows the strategy to one holding to 5% of the total portfolio, diversifying participate in the success of a well-executed business across growth industries, usually initiating a new plan, providing their clients with strong returns that are position at 2-3%. Security weights are the result of the attractive to both taxable and tax-exempt investors. Team's level of conviction in the strength of the The Focused Large Cap Growth strategy was launched company's fundamentals and the appreciation potential by portfolio manager Thomas Galvin in 2003, when he of the security. Portfolios are always fully invested. joined U.S. Trust and created the Focused Large Cap Annual turnover will average approximately 25-35%. Growth team. The ultimate objective is to offer investors potential participation in the bright future of growth companies. INVESTMENT DECISION-MAKING PROCESS - In the Team's view, such companies usually have the The Team employs a team-oriented decision making following fundamental characteristics: -A dominant process which is followed in research, portfolio position in a rapidly growing industry -Earnings growth construction, security selection, and strategy rate of at least 12% per year, or roughly double that of development. Each team member is involved in the the S&P 500 -Financial strength as measured by such genesis and analysis of idea generation, bringing a factors as: low debt, high return on equity, reinvested diverse background and unique contribution to earnings and substantive free cash flow generation portfolio construction. Ideas are discussed among the -Highly regarded, shareholder-focused management team as part of its daily research process. Sponsors Securities are sold for the following reasons: follow companies of interest and continually update the Fundamentals Change: If the investment team rest of the team on their ideas. This process allows for concludes that the earnings growth opportunity for the substantial in-depth, bottom-up research and review by company over the next three years no longer meets The Group on each investment idea before any final their projected earnings growth criteria, the stock will decision is made. As a result, each team member is be sold. Harvest Success: If a stock trades within 10% intimately familiar with all holdings. The lead portfolio of established price objectives, it is reviewed. manager has the ultimate decision making authority Diversification: No company is more than 5% of and accountability. Research plays a key role in a portfolio and no industry more than 10%. Portfolio stock selection process that aims to find where growth cross correlation average less than the benchmark. is sustainable. Our portfolio management team screens Market Message: If a stock experiences a 20% relative potential candidates with an eye to both individual price decline in the prior three months, it will be company fundamentals as well as the macroeconomic immediately reviewed. outlook. Our aim is to stay ahead of the curve by pinpointing sectors that will benefit from the economic PORTFOLIO CONSTRUCTION - The Team makes change we foresee, and within those sectors to target investment decisions based on bottom-up analysis, and growth leaders with expanding and dominant market allow for significant position weights for individual share, strong cash flow, rapid product development, holdings based on their level of conviction in the and high profit margins. We look for strong balance underlying company. The Team relies on fundamental

06/05/2012 30 of 46 COLUMBIA MANAGEMENT COLUMBIA FOCUSED LARGE CAP GROWTH

research to build portfolios, company by company. Responsibility: Equity Portfolio Manager They limit the portfolio market value of any one Professional Accreditation: holding to 5% of the total portfolio, diversifying across Education Undergraduate: Brigham Young University, growth industries, usually initiating a new position at BS 2-3%. Security weights are the result of the Group's Education Graduate: University of Notre Dame, MBA level of conviction in the strength of the company's Year Entered Industry: 1998 fundamentals and the growth potential of the security. Phone: 203-352-4466 Portfolios are always fully invested. Annual turnover email: [email protected] will average approximately 25-35%. The Previous Position: - characteristics of this strategy's risk management Company: George E. Reed Heart Center philosophy are: • Invest only in high-quality Title: Research Assistant companies, three- to five-year time horizon • Maintain a diversified growth portfolio with limited industry overlap oSector limited to 2x that of the Russell 1000 Mr. Richard A. Carter Growth Index oIndustries limited to 10% of the Current Position: SVP, Analyst, 2003 - PRESENT portfolio •Limit portfolio market value basis of each Current Firm: Columbia Management holding to 5% •Established price targets for every Responsibility: Research Analyst holding •Continuous review of the bottom and top Professional Accreditation: performers relative to fundamental changes in each Education Undergraduate: Connecticut College, BA company's outlook •Cross-correlation of each holding Year Entered Industry: 1993 is reviewed. Using one year trailing daily price action Phone: 1-203-352-4470 of each position, they monitor the correlation of each email: [email protected] position with the goal of averaging 0.25 or less across Previous Position: 2000-2003 the portfolio. This is also used prior to purchasing a Company: Credit Suisse First Boston new position to help understand the risk impact of the Title: Equity Market Strategist new position in the portfolio.

KEY INVESTMENT OFFICER: Mr. Michael W. Gnadinger Current Position: Vice President, Analyst, 2003 - TEAM APPROACH PRESENT Current Firm: Columbia Management Mr. Thomas M. Galvin Responsibility: Research Analyst Current Position: President, CIO - LCG, 2003 - Professional Accreditation: CFA PRESENT Education Undergraduate: University of Delaware, BA Current Firm: Columbia Management Year Entered Industry: 2001 Responsibility: Chief Investment officer Phone: 212-893-7100 Professional Accreditation: CFA email: [email protected] Education Undergraduate: Georgetown University, BS Previous Position: - Education Graduate: New York University, MBA Company: U.S. Trust Year Entered Industry: 1983 Title: Portfolio Assistant Phone: 203-352-4437 email: [email protected] Previous Position: - FEES AND MINIMUM ACCOUNT: Company: Credit Suisse First Boston Title: CIO, Equity Strategist SEPARATE ACCT: 0.65% on the first $25MM; 0.50% on the next $50MM; 0.40% on the next $75MM; 0.35% on the next Mr. Todd D. Herget $150MM; Current Position: SVP, Portfolio Manager, 1998 - 0.325% on the next $200MM; 0.275% on all assets PRESENT over $500MM; Min Acct Size: $10MM; Min Fee: Current Firm: Columbia Management $45,000

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MUTUAL FUND: Columbia Select Large Cap Growth Fund - Z shares UMLGX expense ratio net - 1.08%

LAST MODIFIED ON: 12/16/2011

06/05/2012 32 of 46 TCW GROUP TCW CONCENTRATED CORE EQUITIES

865 South Figueroa Street TEL: 213-244-0655 Los Angeles, CA, 90017 FAX: 213-244-0741 CONTACT: Ms. Leah Kirste PRODUCT ASSETS: $ 8,313.83 MILLION

EQUITY INVESTMENT PHILOSOPHY - Superior corporate strategies are discussed in these interviews. 4. long-term performance can be achieved by Independent sources may also be interviewed to verify participating in the long-term success of selected facts and assumptions derived from conversations with extraordinary businesses purchased at attractive management. These sources may include a company’s valuations. The portfolios in TCW Concentrated Core customers, suppliers, competitors and relevant industry Equities seek to maximize total return, with an associations. 5. The portfolio manager evaluates emphasis on capital appreciation. Performance should available research inputs and company stock market be measured over a full market cycle. valuations to develop an investment decision. 6. If a buy decision is made, a plan is developed for each INVESTMENT DECISION-MAKING PROCESS - holding that outlines our expectations for the financial TCW utilizes a multi-factor investment strategy fundamentals of the company and for the price designed to identify opportunities not fully reflected in movement of the stock. 7. All companies held in the stock market valuations. These are: superior business portfolio are monitored and reevaluated to determine if practices, long-term trend analysis and valuation. they are fulfilling expectations. A holding may be sold Companies targeted for investment typically are those when its price rises to a level that reflects fully the believed to have strong and enduring business models company’s growth opportunities, if it fails to meet our and defendable advantages over their competitors. operational expectations, or to take advantage of a They must also be companies positioned to benefit better opportunity. from secular trends. Additionally, each investment is subjected to cash flow based valuation analysis. The PORTFOLIO CONSTRUCTION - The Concentrated portfolio is constructed one stock at a time and each Core Equities portfolios are generally fully invested in stock must satisfy our research criteria. Thorough equities. Our investments typically average higher analysis of a company’s valuation, business model rates of growth, profitability, and quality, though traded advantage and resulting financial superiority is critical. in a higher valuation than the broader market. In order Companies targeted for investment typically exhibit to not dilute the performance of those stocks in which one or more of the following characteristics: - we have the greatest confidence, we do not Superior management teams with long-term business overdiversify. Holdings are weighted to reflect each perspectives and an ownership position in their issue’s attractiveness relative to others. Portfolio businesses. - Specific plans to capitalize on positive holdings will generally fall in the large cap category. fundamental changes. - Dominant industry or market Investment decisions are made with a long-time niche position. - Superior growth and profitability. - horizon which can result in relatively low turnover. Proprietary products or low-cost production and/or distribution capability. - Substantial and sustainable KEY INVESTMENT OFFICER: free cash flow to finance future growth. - Shareholder orientation – deployment of cash flow to generate TEAM APPROACH highest long-term return to shareholders. Our investment process is designed to identify attractive Mr. Craig C. Blum candidates for investment where changes in business Current Position: Group Managing Director, 1999 - fundamentals are not fully reflected in stock market PRESENT valuations. The steps in this process can include: 1. Current Firm: TCW Through original and secondary research, we develop Responsibility: Equity Portfolio Manager an initial investment idea, concept or thesis based on Professional Accreditation: changes in technology, industry dynamics, Education Undergraduate: University of California, Los demographics, regulations, etc. 2. Comprehensive, Angeles, BS proprietary fundamental research is conducted on the Education Graduate: University of California, Los companies and industries of interest. This research Angeles, MBA process is focused on the changes in business Year of Birth: 1970 fundamentals occurring within a company and its Year Entered Industry: 1994 industry. 3. A dialogue is typically established with the Phone: 213-244-0434 senior level managers of a company considered for email: [email protected] investment. Business conditions, business plans and Previous Position: -

06/05/2012 33 of 46 TCW GROUP TCW CONCENTRATED CORE EQUITIES

Company: FMAC Captial Markets Title: Analyst

FEES AND MINIMUM ACCOUNT:

SEPARATE ACCT: Institutional: Negotiated performance-based fee OR .70% on all assets; Min Acct Size: $25MM (US clients), $50MM (Int'l clients); Min Fee: $175,000

MUTUAL FUND: The net expense ratio for the TCW Select Equities Fund (I Class) is 0.90%.; Min Acct Size: $2,000; Min Fee: $18.00

WRAP ACCT: Please contact TCW for details.; Min Acct Size: $100,000

Other: Separate Accounts - High Net Worth Individuals: 1.00% on all assets; Min Acct Size: $3MM; Min Fee: $30,000

LAST MODIFIED ON: 5/18/2012

06/05/2012 34 of 46 SANDS CAPITAL MANAGEMENT, LLC SELECT GROWTH

1101 Wilson Boulevard, Suite 2300 TEL: 703-562-4000 Arlington, VA, 22209 FAX: 703-562-4006 CONTACT: Mr. Luke C. Iglehart PRODUCT ASSETS: $ 20,272.18 MILLION

EQUITY INVESTMENT PHILOSOPHY - The Sands “vetting” conversations to occur in a small group Capital investment approach is active, fundamental, setting, amongst individuals familiar with a variety of bottom-up, and business-focused. Economic, political, industries. Once an idea is fully vetted at the Sector and financial trends factor into the process only Team level it is elevated to the Investment Team, insomuch as they influence the business case for an where a final vetting process occurs. Each of these individual company. There is not a formal top-down groups--the entire 28-member Research Team, the 6 component to the investment process. The entire Sector Teams and the Investment Team--meet weekly investment process is focused on identifying high as part of our rigorous ongoing research efforts. The quality companies that can generate sustainable Process Sands Capital’s research begins with a above-average earnings growth over time. To quantitative search to identify growing companies. This determine this, the research team creates detailed process results in an initial universe of approximately proprietary earnings models that incorporate a broad 250-300 companies, participating in growing sectors of range of fundamental factors depending on the specific the economy usually advanced technology, financial industry. The ultimate goal is to evaluate whether these services, health care, branded consumer and energy. factors (historical ROE, EPS growth, long-term debt to Companies are selected for inclusion in the universe if capital, etc.) support the premise that a business has a they have above average historical and projected sales clear competitive advantage, a solid balance sheet, and and earnings growth, as well as the potential for a rational valuation. The investment strategy has been significant wealth creation. Each Sector Team then developed and refined by Frank M. Sands, Sr., CFA, uses seven qualitative success factors designed to Chairman of Sands Capital, since his entry into the identify the true leader(s) within the most promising investment management industry over 40 years ago. sector(s): 1. Creating growth drivers: new Today, this same approach to investing is led by the products/services and entering new markets Chief Executive Officer and Chief Investment Officer, 2. Developing and anticipating important industry Frank M. Sands, Jr., CFA, who assumed these roles in trends 3. Creating competitive barriers 4. Gaining 2008, and a team of investment professionals all market share 5. Building financial muscle to weather focused exclusively on growth oriented investing. adverse periods and fund new opportunities 6. Displaying superior management ability 7. Applying INVESTMENT DECISION-MAKING PROCESS - technology to add value The Sector Teams use a The People Fundamental, bottom-up, company-focused variety of sources to make these assessments, including research is at the heart of Sands Capital’s investment company financial reports, SEC filings, published process. All research analyses and conclusions are reports from industry experts, street research provided internally generated using a variety of internal and by broker/dealers, non-published Sands Capital external data sources. At the core of the Sands Capital commissioned reports from industry experts, and direct decision making process is an 8-member Investment contact with company managements, suppliers, Team consisting of Frank M. Sands, Jr., CFA (CIO & customers, and industry observers. Companies that CEO), Frank M. Sands, Sr., CFA (Chairman), and 6 pass through the leader screen are added to the Leader senior investment professionals representing the Global List, which typically contains 80 to 100 companies Sector Heads: Thomas M. Ricketts, CFA, David E. across 15 to 20 industries. When a Sector Team can Levanson, CFA, A. Michael Sramek, CFA, T. Perry demonstrate that a company on the Leader List is likely Williams, CFA, Sunil H. Thakor, CFA and John K. to meet the six key criteria, that company is placed on Freeman. This group is part of and supported by a the New Opportunities List. Companies on this list are broader 28-member Research Team that includes an then subjected to the same intensive research as additional 11 research analysts and 9 research companies already in the portfolio. To ultimately be associates. In terms of implementation, investment included in client portfolios, a company must meet all research originates at the Sector Team level. The 6 the following six key criteria: 1. Deliver sustainable covered sectors are: Health Care, Industrials & above-average earnings growth over the next 3-5 years. Communications, Energy, Consumer, Financial 2. Has significant competitive advantages. 3. Has a Services, and Technology. Each of the Sector Teams is leadership position or proprietary niche. 4. comprised of the sector head plus 2-4 additional Demonstrates a clear sense of purpose and mission in Research Team members with varying research an understandable business. 5. Exhibits financial responsibilities. This structure enables vital initial strength. 6. Is rationally valued relative to comparable

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companies, the market, and the business prospects for but it can be expected that an individual holding will that particular company. The Sector Teams are generally represent less than 10% of the portfolio responsible for determining whether a company meets market value. Cash is a residual of the investment all of the above criteria. Each investment case starts process and is generally less than about 5% of with an internal projection of the 3-5 year earnings portfolios. Sands Capital does not try to time the growth rate. Key drivers of that growth are identified, market and strongly believes that market timing does and the rationale for sustainability is articulated. In not work. Client portfolios remain fully invested at all addition to building a proprietary earnings model, the times. Sands Capital has a long term investment time investment case also typically includes key metrics by horizon. This enables the firm to look beyond which the company can be measured, any specific risks short-term events and yesterday’s stock price or unresolved issues relating to the company, as well as movement and to focus on the key drivers of a the hypothetical “sell case” for the company. The company’s long-term business fundamentals and its entire vetting process can last from several weeks to ability to generate sustainable above-average earnings several months, during which additional questions are growth over time. The average holding period for asked and answered (if possible), and additional portfolio companies is over 5 years, which enables information is gathered. When all key issues have been Sands Capital to effectively exploit investment addressed and resolved, and the business is deemed to opportunities in which today’s negative news or successfully meet the six key criteria, the case for sentiment may hurt a company’s stock price despite its potential investment is presented to the Investment having outstanding long-term business results and Team. This additional layer of vetting results in more prospects. The average annual turnover rate over the pointed and focused discussions on the merits of the more than 20 years since inception is approximately business. Ultimately, with consensus from the 18%, with the typical range being 15-25% annually. Investment Team, the portfolio management decision The client’s dedicated portfolio management team making team (comprised of three senior members of invests the assets in the same names and at the Investment Team, Frank M. Sands Jr., CFA, approximately the same portfolio weights as the model Thomas M. Ricketts, CFA and T. Perry Williams, portfolio, unless restrictive client guidelines preclude CFA) determines the execution decisions of initial such allocations. When the firm’s buy/sell decisions weighting, timing and funding source and adjusts the are made, the portfolio management team adjusts the model portfolio. Portfolio managers then utilize this portfolio to the composite’s new target design, again model portfolio to manage groups of similar portfolios unless restrictive client guidelines do not permit such and insure that the holdings across Select Growth allocations. Accordingly, Sands Capital’s portfolios remain uniform. fully-discretionary, tax-exempt accounts look nearly identical. The firm’s portfolio management and PORTFOLIO CONSTRUCTION - Sands Capital seeks accounting software is utilized by the portfolio to place in client portfolios the leading 25 to 30 management team in continually monitoring and companies in the most attractive growth industries. re-balancing each account to meet client investment While only up to 30 companies are owned in client objectives, to follow investment policy guidelines, and portfolios, normally these companies participate in to consistently apply Sands Capital's high quality approximately 50 unique and attractive business growth investment philosophy across all accounts. spaces. The firm believes this business space metric is more valuable and relevant than broadly defined KEY INVESTMENT OFFICER: sectors and thus risk is mitigated by owning the leading and dominant businesses in a diversified array of TEAM APPROACH business spaces. The portfolio’s sector allocations are a residual effect of Sands Capital Management’s Mr. Frank M. Sands, Sr. bottom-up, fundamental approach rather than dedicated Current Position: Chairman, Founder, 1992 - allocations to particular sectors. The six key PRESENT investment criteria do lead to a focus on key growth Current Firm: Sands Capital Management, LLC sectors: healthcare, technology, financial services, Responsibility: Equity Portfolio Manager energy, and consumer discretionary. Sands Capital Professional Accreditation: CFA does not have a maximum size weighting limitation, Education Undergraduate: Dickinson College, BA

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Education Graduate: University of Virginia, MBA Phone: 703-562-4000 Year Entered Industry: 1969 email: Phone: 703-562-4000 Previous Position: 2000-2000 email: Company: Mastrapasqua & Associates Previous Position: 1986-1992 Title: Research Analyst Company: Folger Nolan Fleming Douglas, Inc. Title: Chief Investment Officer Mr. David E. Levanson Current Position: Managing Dir.; Sr. PM, 2002 - Mr. Thomas M. Ricketts PRESENT Current Position: Managing Dir.; Sr. PM, 1994 - Current Firm: Sands Capital Management, LLC PRESENT Responsibility: Equity Portfolio Manager; Research Current Firm: Sands Capital Management, LLC Analyst Responsibility: Equity Portfolio Manager; Research Professional Accreditation: CFA Analyst Education Undergraduate: University of Florida, BS Professional Accreditation: CFA Education Graduate: University of Virginia, MBA Education Undergraduate: University of Virginia, BS Year Entered Industry: 1992 Year Entered Industry: 1994 Phone: 703-562-4000 Phone: 703-562-4000 email: email: Previous Position: 2000-2002 Previous Position: - Company: MFS Investment Management Company: Title: Equity Research Analyst Title:

Mr. T. Perry Williams Mr. Frank M. Sands, Jr. Current Position: Sr. Analyst; Sr, PM, 2004 - Current Position: CEO; CIO, 2000 - PRESENT PRESENT Current Firm: Sands Capital Management, LLC Current Firm: Sands Capital Management, LLC Responsibility: Chief Investment officer Responsibility: Equity Portfolio Manager; Research Professional Accreditation: CFA Analyst Education Undergraduate: Washington & Lee Professional Accreditation: CFA University, BA Education Undergraduate: University of Virginia, BS Education Graduate: University of Virginia, MBA Education Graduate: Northwestern University, MM Year Entered Industry: 1994 Year Entered Industry: 1995 Phone: 703-562-4000 Phone: 703-562-4000 email: email: Previous Position: 1994-2000 Previous Position: 1995-2004 Company: Fayez Sarofim & Co. Company: Mercer Investment Consulting, Inc. Title: Principal; Port. Manager Title: Consultant, Principal

Mr. A. Michael Sramek Mr. John K. Freeman Current Position: Managing Dir.; Sr. PM, 2001 - Current Position: Sr. Analyst; Sr. PM, 2006 - PRESENT PRESENT Current Firm: Sands Capital Management, LLC Current Firm: Sands Capital Management, LLC Responsibility: Equity Portfolio Manager; Research Responsibility: Equity Portfolio Manager; Research Analyst Analyst Professional Accreditation: CFA Professional Accreditation: Education Undergraduate: Princeton University, AB Education Undergraduate: Harvard University, AB Education Graduate: Vanderbilt University, MBA Year Entered Industry: 1998 Year Entered Industry: 1995 Phone: 703-562-4000

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email: Year Entered Industry: 2008 Previous Position: 2003-2005 Phone: 703-562-4000 Company: Precursor, Inc. email: Title: Senior Research Analyst Previous Position: 2006-2007 Company: Massachusetts Eye & Ear Infirmary Title: Scientist Mr. Sunil H. Thakor Current Position: Sr. Analyst; Sr. PM, 2006 - PRESENT Mr. Thomas H. Trentman Current Firm: Sands Capital Management, LLC Current Position: Research Analyst; PM, 2005 - Responsibility: Equity Portfolio Manager; Research PRESENT Analyst Current Firm: Sands Capital Management, LLC Professional Accreditation: CFA Responsibility: Research Analyst Education Undergraduate: Colby College, BA Professional Accreditation: CFA Education Graduate: Columbia University, MBA Education Undergraduate: Washington & Lee Year Entered Industry: 1999 University, BA, BS Phone: 703-562-4000 Year Entered Industry: 2005 email: Phone: 703-562-4000 Previous Position: 1999-2004 email: Company: Charles River Associates, Inc. Previous Position: - Title: Associate Company: Title:

Mr. Wesley A. Johnston Current Position: Research Analyst; PM, 2004 - Mr. Neil Kansari PRESENT Current Position: Rsearch Analyst, 2008 - PRESENT Current Firm: Sands Capital Management, LLC Current Firm: Sands Capital Management, LLC Responsibility: Equity Portfolio Manager; Research Responsibility: Research Analyst Analyst Professional Accreditation: Professional Accreditation: CFA Education Undergraduate: University of Mumbai, BE Education Undergraduate: University of Pennsylvania, Education Graduate: University of Virginia, MBA BS Advanced Degree: University of Virginia, MS Year Entered Industry: 2004 Year Entered Industry: 2004 Phone: 703-562-4000 Phone: 703-562-4000 email: email: Previous Position: - Previous Position: 2007-2007 Company: Company: Bear Stearns & Co., Inc. Title: Title: Equity Research

Mr. Michael P. Rubin Mr. Ashraf A. Haque Current Position: Research Analyst; PM, 2008 - Current Position: Research Analyst, 2008 - PRESENT PRESENT Current Firm: Sands Capital Management, LLC Current Firm: Sands Capital Management, LLC Responsibility: Research Analyst Responsibility: Research Analyst Professional Accreditation: Professional Accreditation: MD Education Undergraduate: Northwestern University, Education Undergraduate: University of California Los BA Angeles, BS Education Graduate: Harvard University, MBA Education Graduate: University of Massachusetts Year Entered Industry: 2004 Amherst, MBA Phone: 703-562-4000 Advanced Degree: University of Chicago, MD email:

06/05/2012 38 of 46 SANDS CAPITAL MANAGEMENT, LLC SELECT GROWTH

Previous Position: 2007-2008 Current Position: Research Analyst, 2007 - PRESENT Company: Chesapeake Partners Current Firm: Sands Capital Management, LLC Title: Investment Analyst Responsibility: Research Analyst Professional Accreditation: CFA Education Undergraduate: Washington & Lee Mr. Brian A. Christiansen University, BS Current Position: Research Analyst, 2008 - PRESENT Year Entered Industry: 2007 Current Firm: Sands Capital Management, LLC Phone: 703-562-4000 Responsibility: Research Analyst email: Professional Accreditation: CFA Previous Position: - Education Undergraduate: Yale University, BA Company: Education Graduate: Yale University, MBA Title: Year Entered Industry: 2006 Phone: 703-562-4000 email: Mr. Michael J. Clarke Previous Position: 2006-2008 Current Position: Research Analyst, 2011 - PRESENT Company: Sands Capital Management, LLC Current Firm: Sands Capital Management, LLC Title: Research Associate Responsibility: Research Analyst Professional Accreditation: Education Undergraduate: University of Redlands, BA Mr. Michael F. Raab Education Graduate: George Washington University, Current Position: Research Analyst; PM, 2007 - MBA PRESENT Year Entered Industry: 2005 Current Firm: Sands Capital Management Phone: 703-562-4000 Responsibility: Research Analyst email: Professional Accreditation: CFA Previous Position: 2007-2011 Education Undergraduate: University of Virginia, BA Company: FBR Capital Markets Year Entered Industry: 2006 Title: Senior Associate Phone: 703-562-4000 email: Previous Position: 2006-2007 Mr. Barron B. Martin, Jr. Company: SNL Financial Current Position: Research Analyst, 2008 - PRESENT Title: Analyst Current Firm: Sands Capital Management, LLC Responsibility: Research Analyst Professional Accreditation: Mr. Matthew W. Luneberg Education Undergraduate: Washington & Lee Current Position: Research Analyst, 2006 - PRESENT University, BA, BS Current Firm: Sands Capital Management, LLC Year Entered Industry: 2008 Responsibility: Research Analyst Phone: 703-562-4000 Professional Accreditation: CFA email: Education Undergraduate: Washington & Lee Previous Position: - University, BA Company: Year Entered Industry: 2006 Title: Phone: 703-562-4000 email: Previous Position: - FEES AND MINIMUM ACCOUNT: Company: Title: SEPARATE ACCT: 0.75% on 1st $50MM; 0.50% all over $50MM; Min Acct Size: $25 million; Min Fee: $187,500.00 Mr. Davis M. Catlin

06/05/2012 39 of 46 SANDS CAPITAL MANAGEMENT, LLC SELECT GROWTH

MUTUAL FUND: Mutual fund information available through Touchstone.

LAST MODIFIED ON: 4/27/2012

06/05/2012 40 of 46 06/05/2012

Important Information about this Report This report includes presentations of managers’ performance on a gross fee basis. results are generally net of commissions on securities transactions but do not reflect Since the effects of management fees reduce performance, this report is intended the deduction of the investment manager’s fee or UBS Financial Services’ fee. The only for one-on-one presentations to institutional and high net worth individuals payment of these fees and expenses will reduce your return. The net effect of the who understand how the payment of fees, compounded over time, will reduce deduction of fees on annualized performance, including the compounded effect over performance results and have indicated such accreditation in the MEPS time, is determined by the relative size of the fee and the account’s investment questionnaire. performance. For example, for an account with a 2.8% annual fee deducted quarterly, if the gross performance is 10% on an annual basis, the quarterly This report is intended as a general guide for your investment plans and is for your compounding effect of the fees will result in a final performance of approximately use only. This report provides, among other things, a preliminary comparison to 7.1% per year, a reduction of 2.9% per year. Compounding will similarly affect the various market indexes of the hypothetical investment performance that might have account’s performance on a cumulative basis. It should also be noted that where been achieved if the investment managers identified had managed an investor’s your gross returns are compared to an index, the index performance also does not account in accordance with the asset allocations and investment styles specified. It is reflect any transaction costs or management fees. not intended to provide and should not be construed as providing tax or legal advice. Some investment managers presented in the strategies may have individual The information contained in this report reflects a collaborative process between you performance track records that are longer than the period shown in the report. and your Financial Advisor. Any recommendations are based upon our Individual investment managers’ performance records for longer time periods, if understanding of your responses to the profile questions and are current only as of applicable, are available through your Financial Advisor. For complete information the date printed on the front cover. Unless you make a specific request for an update, regarding these investment managers, their fees and performance, contact your this report will not be updated to reflect any changes in any of the accounts covered, UBSIC Consultant and see the manager’s Form ADV, Part II. your investment objectives, risk tolerances or market conditions. Important Information Regarding Simulated Performance You should note that UBS Financial Services (“the Firm”) has a variety of products and services that provide portfolio review and analysis. The recommendations and The strategy is a new strategy and does not have a track record. The performance types of analyses provided (including recommended asset allocation strategies) may information presented is simulated, backtested and was created by applying the same vary depending on the asset allocation model and program used. investment perspectives and quantitative analysis of valuation, quality and sentiment that are employed in existing strategies managed by the investment manager, though This report may cover a number of your existing portfolio, each with potentially differences exist in portfolio construction. Any improvements that were incorporated different investment objectives and risk parameters. As you instructed, the assets in into the current investment process and quantitative models were assumed to exist these accounts have been considered as a whole in developing an overall asset for the entire simulation period. Implementation of the live strategy versus the allocation strategy that addresses your specific investment goal. simulated strategy will be virtually identical with the exception of intramonth Investment Manager Performance trading. The hypothetical performance results for the model shown reflect the investment returns that an investor might have achieved by investing in the strategy Performance results for investment managers that are included in our ACCESS for the entire period indicated. It assumes that, since inception, no cash was added to program, which are indicated throughout the report, are based upon the ACCESS or assets withdrawn from the account and that all dividends, gains and other manager’s time weighted rates of return of fully discretionary ACCESS accounts earnings in the account were reinvested. The simulation assumed once a month managed for at least one full calendar quarter. Performance results for non-ACCESS trading but trading for the live strategy will likely occur more frequently. Returns participating investment managers are obtained from Informa Investment Solutions’ are simulated for the entire period and assume 1.0% transaction costs. The testing Plan Sponsor Network (PSN) as reported by each investment manager and do not methodology used both internally and Factset provided data and applications to reflect actual UBS Financial Services account performance. Your returns may vary generate simulated historical portfolios. The results shown do not represent the from these results shown due to timing and other individual account factors. These results of actual trading using client assets, but were achieved by means of the 41 of 46 06/05/2012

retroactive application of a model that was designed with the benefit of hindsight. site visits are the same for managers in both programs. In addition, for ACCESS The simulated performance was compiled after the end of the period depicted and managers, a detailed review of portfolio performance and attribution is performed on does not represent the actual investment decisions of the advisor. These results do a quarterly basis to ensure that portfolios continue to be invested consistent with the not reflect the effect of material economic and market factors on decision-making. manager’s stated investment style. Portfolio attribution analysis is performed prior As a result, there is no reason to believe that your portfolio will perform in a similar to on-site visits and may be done during periods of poor relative performance, but is manner or that the investment manager would have made the same investment not systematically performed on a quarterly basis. T recommendations or achieved the same level of performance if it had been managing the strategy for the entire period for actual clients and charging fees for he strategies presented are hypothetical portfolios, and have not been tracked by the advice, with the knowledge that clients would rely on the advice and in light of UBS Financial Services. They were created as of the date of this report with the then-current market conditions. The strategy did not exist during the period benefit of hindsight. The past performance of each recommended investment presented. In addition, if investors had actually invested based on the strategy, their manager was known to UBS Financial Services when it developed the strategies and results would have differed from those shown because of differences in the timing was a key factor in the Firm’s decision to include each investment manager in a and amounts of their investments. Past performance is never an indicator of future recommended strategy. There is no reason to believe that UBS Financial Services results. would have been able to develop this same strategy without knowing in advance how the recommended investment managers and the markets would perform, and Index Information these results are not an indicator that UBS Financial Services will be able to do so in the future. An actual investment in the securities included in the index would require an investor to incur transaction costs, which would lower the performance results. The past performance results for the recommended strategy are hypothetical. They Please keep in mind that index information is for illustrative purposes and relates to reflect the theoretical investment returns that an investor might have achieved by historical performance of market indexes and not the performance of actual investing the amount and on the dates indicated on the investment profile section of strategies or managers presented. The past performance of the indexes is not a this report, and by following the recommendation for initially allocating, and then guarantee of future results because each index reflects an unmanaged universe of reallocating from time to time, the account’s assets among the different securities and does not include any deduction for advisory fees or other expenses recommended investment managers. It assumes that, after establishing the account, that would reduce actual returns. The performance shown should not be considered the investor would not have added any cash to or withdrawn assets from the account indicative of the performance of an actively managed portfolio for the same time and that all dividends, gains and other earnings in the account would have been period. Most managers are not restricted to investment in the same securities or reinvested in accordance with the Firm’s recommendations. The recommended security weightings as the corresponding indexes, so performance will vary. Finally, strategy in this format may not have existed as of the dates for which performance is the performance of the indexes reflects the reinvestment of all income and shown. In addition, some of the investment managers recommended may not have dividends. A description of each index can be found in the Definitions section at the been part of any UBS Financial Services sponsored program at that time. Actual end of this report. assets of actual clients may not have been invested in accordance with these strategies during the time periods shown. Recommended Strategies Past performance can never guarantee future results. The Manager Recommendations included in this Report are limited to those managers and strategies in our ACCESS, MAC Researched, and UBSIC Reviewed Assets Held at Other Financial Institutions programs. While the due diligence process encompasses managers in each program, the frequency and depth of our due diligence reviews varies depending on which At your direction, we may also have considered assets that you hold at other program the manager participates in. The level of due diligence encompasses a financial institutions. Information about these assets is based solely on the quantitative review of composite and actual performance data and portfolio analytics information you have provided to us. We have not verified, and are not responsible (including responses to a detailed questionnaire) and may also include on-site visits for, the accuracy or completeness of this information. by one or more of our Investment Manager Research Analysts to each manager. For You have provided the names of investment managers managing your assets at other ACCESS managers, on-site visits occur on average at least once every 12 months. financial institutions. This report provides performance information derived from a On-site visits to MAC Researched managers occur on average at least every 2 years. third party database, which is believed to be reliable, but which UBS Financial UBSIC Reviewed managers are subject to in-depth review on average at least every Services has not verified. The managers listed are in comparative portfolios and are 2 years, but no on-site visits are conducted. The evaluation criteria covered in on- for illustrative purposes. You may not have received the performance returns 42 of 46 06/05/2012

presented here because they are gross of any management fees and other charges that have been assessed to your account. Therefore, any evaluation or analysis provided in this report regarding separate account managers, which includes assets Please note that any discrepancies between the information you provided and the actual value of those assets at the time you choose to implement the strategy may also affect the outcome of the asset allocation strategy we discuss with you. As such, the results may differ from any illustrations shown on this report. Taxes Implementing any strategy presented, including changing any strategy may result in incurring gains or losses for income tax purposes. UBS Financial Services does not provide tax advice. We recommend that you evaluate this report with your legal and/or tax advisor before taking any action because of the significance and complexity of tax considerations. Periodic Reviews Since this report is based on information provided as of the date indicated on the cover, assumptions and estimates may change. For this reason, with your Financial Advisor, you should periodically revisit your current financial situation, your current strategy, and the assumptions it contains. 43 of 46 06/05/2012

Definitions General Definitions Sharpe-Ratio – A risk-adjusted measure developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine Alpha – A measure of the difference between a fund’s actual returns and its reward per unit of risk. The higher the Sharpe Ratio, the better the portfolio’s expected performance, given its level of risk as measured by beta. A positive alpha historical risk-adjusted performance is. The Sharpe Ratio is calculated for the past figure indicates the fund has performed better than its beta would predict. In 36-month period by dividing a portfolio’s annualized excess returns by its contrast, a negative alpha indicates the fund’s underperformance, given the annualized standard deviation. Since this ratio uses standard deviation as its risk expectations established by the fund’s beta. All MPT statistics (alpha, beta, and R- measure, it is most appropriately applied when analyzing a portfolio that is an squared) are based on a least-squared regression of the fund’s return over Treasury investor’s sole holding. The Sharpe Ratio can be used to compare two portfolios bills. directly on how much risk a fund has to bear to earn excess return over the risk-free Beta – A measure of a fund’s sensitivity to market movements. The beta of the rate. market is 1.00 by definition. Morningstar calculates beta by comparing a fund’s Standard Deviation – A measure of risk. A statistical measurement of dispersion excess return over T-bills to the market’s excess return over T-bills, so a beta of 1.10 about an average, which, for a portfolio, depicts how widely the returns varied over shows that the fund has performed 10% better than its benchmark index in up a certain period of time. Investors use the standard deviation of historical markets and 10% worse in down markets, assuming all other factors remain performance to try to predict the range of returns that are most likely for a given constant. Conversely, a beta of 0.85 indicates that the fund’s excess return is portfolio. When a portfolio has a high standard deviation, the predicted range of expected to perform 15% worse than the market’s excess return during up markets performance is wide, implying greater risk and volatility. and 15% better during down markets. Tracking Error – Measures the divergence between the price behavior of a Blend – A Blend is several managers allocated to percentages of a whole. The portfolio to the price behavior of a benchmark. performance of the managers is weighted to create the blended performance. Up Market Capture Ratio – Up-market capture ratio is a measure of managers’ Downside Risk – Downside Risk, or Semi-variance is the standard deviation (see performance in up markets relative to the market itself. An up market is one in Standard Deviation) of the portfolio’s negative returns. Many consultants find the which the market’s quarterly return is greater than or equal to zero. The higher the statistic extremely useful since it measures volatility in undesirable situations. The manager’s up-market capture ratio, the better the manager capitalized on a rising higher the value, the greater the historical Downside Risk. market. For example, a value of 110 suggests that the manager captured 110% of the Down Market Capture Ratio – A measure of managers’ performance in down up market (performed ten percent better than the market) when the market was up. markets relative to the market itself. A down market is one in which the market’s quarterly return is less than zero. The lower the manager’s down-market capture ratio, the better the manager protected capital during a market decline. A value of 90 suggests that a manager’s losses were 90% of the market loss when the market was down. Information Ratio – The ratio of annualized expected residual return to residual risk. To calculate the IR the active return and tracking error must be annualized. R-Squared – Reflects the percentage of a strategy’s movements that can be explained by movements in its benchmark index. An R-squared of 100 indicates that all movements of a fund can be explained by movements in the index. Thus, portfolios invested in S&P 500 stocks will typically have an R-squared close to 100. Conversely, a low R-squared indicates that very few of the fund’s movements can be explained by movements in its benchmark index. An R-squared measure of 35, for example, means that movements in the benchmark index can explain only 35% of the portfolio’s movements. 44 of 46 06/05/2012

Index Definitions Barclays Capital Mortgage Backed (BCMBS) Composed of all fixed-rate, securitized mortgage pools by GNMA, FNMA, and FHLMC, including GNMA First Boston Convertible Securities (FBCB) This is a performance benchmark for graduated payment mortgages. The minimum principal amount required for convertible accounts. This index generally includes 250 to 300 issues. To be inclusion is $50 million. Total return comprises price appreciation/depreciation and included, convertible bonds and preferreds must be rated B- or better by Standard & income as a percentage of the original investment. Indexes are rebalanced monthly Poor’s (quality-related adjustments are made at the end of each calendar year), by market capitalization. convertibles must have a minimum issue size of $50 million (new issues are added in the month following their issuance), and preferreds must have a minimum of Barclays Capital Municipal Bond (BCM) Computed twice monthly from prices 500,000 shares outstanding. Eurobonds are also included if they are issued by US- on approximately 1,100 bonds. Prices are supplied by Kenny Information Systems, domiciled companies, rated B- or higher by Standard & Poor’s, and have an issue Inc. The index is composed of approximately 60% revenue bonds and 40% state size greater than $100 million. government obligations. Barclays Capital Aggregate Bond Index (BCAG) Composed of securities from Barclays Capital Municipal 5 Year (BCMB) A subset of the Barclays Capital Barclays Capital Brothers government/corporate bond index, mortgage-backed Municipal Bond Index where the average maturity of the bonds are five years. securities index, and the asset-backed securities index. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. MSCI (EAFE) An arithmetic, market value-weighted average of the performance of Indexes are rebalanced monthly by market capitalization. over 900 securities listed on the stock exchanges of the following countries in Europe, Australia and the Far East: Australia, Hong Kong, Norway, Austria, Ireland, Barclays Capital Corporate Int (BCIC) A subset of the Barclays Capital Singapore, Belgium, Italy, Spain, Denmark, Japan, Sweden, Finland, Malaysia, Corporate Bond Index covering all corporate, publicly issued, fixed-rate, Switzerland, France, Netherlands, United Kingdom, Germany, New Zealand. nonconvertible US debt issues rated at least Baa with at least $50 million principal outstanding and maturity less than 10 years. MSCI Emerging Markets (EMF) The MSCI Emerging Markets (EMF) is a free float-adjusted market capitalization index that is designed to measure equity market Barclays Capital Corporate Long Term (BCLTC) A subset of the Barclays performance in the global emerging markets. As of April 2002 the MSCI EMF Capital Corporate Bond Index covering all corporate, publicly issued, fixed-rate, Index consisted of the following 26 emerging market country indexes: Argentina, nonconvertible US debt issues rated at least Baa with at least $50 million principal Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, outstanding and maturity greater than 10 years. Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela. Barclays Capital Government Corporate Bond Index (BCGC) Composed of all bonds that are investment grade (rated Baa or higher by Moody’s or BBB or highest MSCI World S/B Net (MSCIW) The MSCI World Index is a free float-adjusted by S&P, if unrated by Moody’s). Issues must have at least one year to maturity. market capitalization index that is designed to measure global developed market Total return comprises price appreciation/depreciation and income as a percentage equity performance. As of April 2002 the MSCI World Index consisted of the of the original investment. Indexes are rebalanced monthly by market capitalization. following 23 developed market country indexes: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Barclays Capital Government/Corporate Int (BCIGC) Composed of all bonds Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, covered by the Barclays Capital Government/Corporate Bond Index with maturities Switzerland, the United Kingdom and the United States. between one and 9.99 years. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indexes are rebalanced S&P 500 (SWPI) Covers 500 industrial, utility, transportation, and financial monthly by market capitalization. companies of the US markets (mostly NYSE issues). The index represents about 75% of NYSE market capitalization and 30% of NYSE issues. It is a capitalization- Barclays Capital Government/Corporate Long Term (BCLTGC) Composed of weighted index calculated on a total return basis with dividends reinvested. all bonds covered by the Barclays Capital Government/Corporate Bond Index with maturities of 10 years or greater. Total return comprises price Russell 1000 (R1000) Consists of the 1,000 largest securities in the Russell 3000 appreciation/depreciation and income as a percentage of the original investment. index. This large cap (market-oriented) index represents the universe of stocks from Indexes are rebalanced monthly by market capitalization. which most active money managers typically select. The Russell 1000 is highly correlated with the S&P 500 index. 45 of 46 06/05/2012

Russell 1000 Growth (R1000G) Contains those Russell 1000 securities with a values. The stocks in this index are also members of either the Russell 1000® Value greater-than-average growth orientation. Securities in this index tend to exhibit or the Russell 2000® Value indexes. higher price-to-book and price-earnings ratios, lower dividend yields and higher forecasted growth values than the value universe. Russell Midcap (RMID) Consists of the smallest 800 securities in the Russell 1000 index, as ranked by total market capitalization. This index accurately captures the Russell 1000 Value (R1000V) Contains those Russell 1000 securities with a less- medium-sized universe of securities and represents approximately 35% of the than-average growth orientation. It represents the universe of stocks from which Russell 1000 total market capitalization. value managers typically select. Securities in this index tend to exhibit low price-to- book and price-earnings ratios, higher dividend yields and lower forecasted growth Russell Midcap Growth (RMIDG) Contains those Russell Midcap securities with values than the growth universe. a greater-than-average growth orientation. Securities in this index tend to exhibit higher price-to-book and price-earnings ratios, lower dividend yields and higher Russell 2000 (R2000) Consists of the smallest 2,000 securities in the Russell 3000 forecasted growth values than the value universe. The stocks are also members of index, representing approximately 11% of the Russell 3000 total market the Russell 1000 Growth Index. capitalization. This index is widely regarded in the industry as the premier measure of small cap stocks. Russell Midcap Value (RMIDV) Contains those Russell Midcap securities with a less-than-average growth orientation. Securities in this index tend to exhibit low Russell 2000 Growth (R2000G) Contains those Russell 2000 securities with a price-to-book and price-earnings ratios, higher dividend yields and lower forecasted greater-than-average growth orientation. Securities in this index tend to exhibit growth values than the growth universe. The stocks are also members of the Russell higher price-to-book and price-earnings ratios, lower dividend yields and higher 1000 Value Index. forecasted growth values than the value universe. Salomon Brothers World Government Bond (SWGB) A market capitalization- Russell 2000 Value (R2000V) Contains those Russell 2000 securities with a less- weighted index consisting of government bond markets of the following countries: than-average growth orientation. Securities in this index tend to exhibit lower price- Australia, Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan, to-book and price-earnings ratios, higher dividend yields and lower forecasted Netherlands, Spain, Sweden, United Kingdom, United States. growth values than the growth universe. U.S. Treasury Bill (USTB): Represents 90-day return for Treasury Bills issued by Russell 2500 (R2500) Consists of the bottom 500 securities in the Russell 1000 the United States government. index and all 2,000 securities in the Russell 2000 index, representing approximately 23% of the Russell 3000 total market capitalization. This index is a good measure of Wilshire RE Securities Index (WRESI) A broad measure of the performance of small to medium-small stock performance. publicly traded real estate securities, such as Real Estate Investment Trusts (REITs) and Real Estate Operating Companies (REOCs). The index is capitalization- Russell 2500 Growth (R2500G) Measures the performance of those Russell 2500 weighted. The beginning date, January 1, 1978, was selected because it coincides companies with higher price-to-book ratios and higher forecasted growth values. with the Russell/NCREIF Property Index start date. The Index is rebalanced monthly, and returns are calculated on a buy and hold basis. Russell 2500 Value (R2500V) Measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. Russell 3000 (R3000) Measures the performance of the 3,000 largest US companies based on total market capitalization, which represents approximately 98% of the investable US equity market. Russell 3000 Growth (R3000G) Measures the performance of those Russell 3000® Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000® Growth or the Russell 2000® Growth indexes. Russell 3000 Value (R3000V) Measures the performance of those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth 46 of 46 Gwinnett County Large Cap Growth Manager Search

Returns (through July 2012) July YTD 1 Year 3 Years 5 Years

Bahl & Gaynor 1.65% 7.35% 8.28% 12.82% 3.77% Columbia -0.68% 5.86% -7.15% 14.11% 4.18% Sands 0.43% 16.49% 9.28% 24.16% 8.36% TCW 0.18% 8.15% 4.61% 15.67% 5.58% Russell 1000 Growth 1.34% 11.55% 8.26% 15.35% 3.46% S&P 500 Index 1.39% 11.01% 9.06% 14.11% 1.13%

Note: Performance figures are estimated, non-audited and subject to change Performance Monitoring

Performance as of June 30, 2012 3 Months 1 Year 3 Years 5 Years 10 Years

% of Peer % of Peer % of Peer % of Peer % of Peer Group/Investment Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten Return Group Beaten

Highlighted entries indicate active funds trailing the majority of its peer group over 3 and 5 years. DATA SOURCE: Morningstar 6/30/12 For Plan Sponsor Use Only 14 June 30, 2012 Asset Distribution by Fund – Combined

C O N S U L T I N G, L L C The experience and dedication you deserve

July 20, 2012

Mr. Bill Rodenbeck Pension Finance Manager Gwinnett County Risk Management Division 75 Langley Drive Lawrenceville, GA 30045-6900

Re: Defined Contribution Plan Participants Non-economic Assumption Analysis

Dear Bill:

This letter will serve as our formal recommendation that an analysis of the non-economic assumptions applied to defined contribution plan participants eligible for post employment health benefits be performed.

The purpose of such an analysis is to evaluate the appropriateness of the current assumptions used in the actuarial valuation process to measure system liabilities. An experience investigation conducted for the three-year period covering January 1, 2006 through January 1, 2009 for the Gwinnett County Defined Benefit Plan was completed in January, 2010, but since data is limited, no such experience investigation has been performed for the defined contribution plan (DC plan) participants.

Our analysis will evaluate all non-economic assumptions, particularly termination of employment and retirement, used in the annual actuarial valuation for DC plan participants, make recommendations for changes where appropriate, and determine the impact of the recommended changes on system funding. A first step in the analysis will be to compare actual with expected experience for the DC plan participants. This portion of the investigation will be limited since the average service of DC plan participants is 4.54 years and most of them are not yet eligible for retirement.

Supplementing the actual versus expected experience comparison will be an analysis of non- economic assumptions used by public plans who have adopted defined contribution or hybrid retirement plans which incorporate defined contribution features, such as account portability, into their retirement plans. Analysis of the termination and retirement assumptions used for defined contribution or hybrid plans compared with those used in traditional defined benefit retirement plans will help us determine more appropriate rates for the DC plan participants.

3550 Busbee Pkwy, Suite 250, Kennesaw, GA 30144 Phone (678) 388-1700 • Fax (678) 388-1730 www.CavMacConsulting.com Offices in Englewood, CO • Kennesaw, GAOff • Bellevue, NE • Hilton Head Island, SC Mr. Bill Rodenbeck July 19, 2012 Page 2

Our process complies with the guidance provided by Actuarial Standards of Practice (ASOP) No 35 (demographic assumptions) which states that the actuary must consider the relevant assumption universe which may include tables, factors, and modifications to the tables that are available to actuaries. Sources of information relevant to many demographic assumptions include the following:

a) Experience studies or published tables based on experience under uninsured plans or annuity contracts, or based on any other populations considered representative of the group at hand; b) Relevant plan or plan sponsor experience, to the extent that it is credible, which may include analyses of gains or losses by source; c) Studies or reports of the effects of plan design, specific events (for example shutdown), economic conditions, or sponsor characteristics on the demographic assumption under consideration; and d) Studies or reports of general trends relevant to the type of demographic assumption in question (for example, mortality improvement in the United States).

ASOP 35 future states that the actuary must select the specific assumptions and evaluate the reasonableness of the selected assumptions. Specific considerations include:

Retirement Assumption – The actuary should consider factors such as the following:

a) The plan design, where specific incentives may influence when participants retire; b) The design of, and the date of anticipated payment from, social insurance programs (for example, Social Security or Medicare); and c) The availability of other employer-sponsored postretirement benefit programs (for example, postretirement health coverage or savings plan).

Termination of Employment Assumption – The actuary should consider factors such as the following:

a) Employer-specific or job-related factors such as occupation, employment policies, work environment, unionization, hazardous conditions, and location of employment; and b) Plan provisions, such as early retirement benefits, vesting schedule, or payout options.

A letter will be prepared detailing the results of the analysis and providing sufficient explanation and supporting information for the Board to make an informed decision regarding each of the recommendations made. If desired, this will be covered with the Board and staff at a Board meeting.

We will detail our findings for each material actuarial assumption and method separately, showing actual experience over the period in comparison with the expected experience based on current assumptions, where available, and providing analysis of information acquired from other sources. We will present our assessment of the experience in the context of current long-term Mr. Bill Rodenbeck July 19, 2012 Page 3

expectation. If there are any recommended changes to the assumption, we will provide the comparative analysis and fiscal impact of the recommendation.

Fees

Since the traditional method of comparing actual with expected experience for the DC plan participants will be limited and the availability of data from other sources is unknown until we complete the study, the fee for performing the analysis will be based on our hourly rates with a not to exceed cap of $5,000.

If you have any questions, please let me know.

Sincerely,

Alisa Bennett, FSA, EA, FCA, MAAA Principal and Consulting Actuary AB/kc

S:\Gwinnett County Retirement System\2012 OPEB\CorrespondenceDefined Contribution Plan ParticipantsLetter 7-16-2012.docx

NEXT SECTION FORFEITURE AND REVENUE SHARING FUNDS Year to Date

Forfeiture Forfeiture/ Revenue Forfeiture Balance Unallocated Sharing Funds as of 9/30/11 Fund Total 9/1/11 – 8/14/12 Plan as of 8/14/12 8/14/12 401(a) Deferred $727,482 $260,892 $21,373 $239,519 Compensation 401(h) Retiree Medical $744, 491 $637,764 $1,057 $636,707 Savings Plan 457(b) Deferred $34,599 $59,496 $22,855 $36,641 Compensation Plan

Forfeiture funds have been used to make the employer contribution for the 401(h) Plan since September 2011. (Approximately $240,000 per year)

Forfeiture funds were used during October -November 2011 to make employer contributions. (Approximately $667,843)

NEXT SECTION Plan Participation – 2012

Plan 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Participation Participation Participation Participation

DB Plan 2,107 2,060

DC Plans 2,263 2,309 Retiree Medical Savings Plan 651 634 Deferred Compensation 2,882 2,942

Deferred 1,113 1,206 Compensation Match

Total Participants 4,370 4,369 Retirees receiving DB pension 1,756 1,776

Retirements - DB 9 37

Retirements – DC 1 4

Deferred Vested 9 10 Retirees w/Health Insurance 1,394 1,435

Great West Education Participation - 2011

Activity 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Participation Participation Participation Participation Group/Onsite Meetings 48 83 Seminars/Lunch & Learns 1 4 One on One Meetings 348 310

NEXT SECTION

TO: Retirement Plans Management Committee

FROM: Kenneth Poe Chairman, RPMC

Mike Ludwiczak Chairman, RPMC Investment Committee

DATE: August 23, 2012

SUBJECT: Great West Due Diligence Trip

On July 25 & 26, 2012, Great West hosted a due diligence trip to their corporate offices in Denver, Colorado for members of the Gwinnett County RPMC and Human Resources staff. The trip was coordinated by Donald Erwin, Client Relationship Director and we were accompanied by Amy Heyel, VP Government Markets Client Relations and Fred Minot, Key Retirement Plan Counselor.

Great West has an impressive corporate campus in suburban Denver. They were most welcoming and were completely willing to share all aspects of their operations. We met with many Great West staff during our day and a half of meetings. All were very professional and very knowledgeable about Gwinnett County’s plans. Great West devotes considerable amount of resources to ensure our plans are managed well and our participants are satisfied.

Overall, we were very impressed with all aspects of their operations and service delivery and are pleased to report back to the full committee that we believe we are receiving quality services.

Following is a summary of the agenda topics that were covered during our trip:

Administration & Record Keeping

GW Representative: Tom Pfeifle

Since the transfer of records from ACCG to Great West, there has been continued activity to audit and clean up participant data for DB plan participants. We have been fortunate to have the same Great West representatives (Tom Pfeifle and Chip Weule) working with us to identify errors and then audit all records to determine if similar errors exist. As a result, we all agreed there is now a much higher level of confidence with data accuracy.

Sue Rooks, HR Retirement Plans Specialist, worked with Chip Weule throughout the time we were there on the project to clean up deferred vested participant data. As a result of their work, they were able to identify efficiencies in the data gathering/review process and worked through some participant issues that needed further research.

We also received information on the following:

GS Proprietary Recordkeeping System (ISIS – Innovative Strategic Investment System) o Built and owned by GW o Rules-based o Fully integrated online/real time o Client server architecture used for scalability

Technology

o Environment is redundant for high availability o Disaster recovery and business continuance plans tested 3 times per year . Database replication to alternate data centers . Database backups 6 nights per week

Client Service Tour

GW Representatives: Thomas Houston, Kyle David, Garry Edwards

We received a tour of the Call Center and heard about their training process along with their data management and call center systems. They have an impressive work environment with comfortable cubicles and endless windows of long range mountain views. As turnover in call centers is usually an issue, we were pleased to hear about a unique program they have to address turnover as a result of internal promotions. When call center personnel receive a promotion and transition out of the call taking position, they are given the opportunity to volunteer to be on a special team which works in the call center during times of high volume and get paid at a premium rate. This keeps them trained on call taking skills and helps the organization to address staffing shortages with experienced people.

We also learned the following:

Customer Service Reps are securities licensed Extensive training is provided and they have a quality assurance program All transactions/calls are logged and utilize action request tickets to track follow-ups Call center has 95% first call resolution rate

Systems Security

GW Representative: Erica Boyle

We toured GW’s specially designed and secured facility that houses their data center and print shop. Security was tight with plenty of security cameras. We even had to leave our cell phones at the security check point. Most of the facility is below ground with sufficient back-up generators. Back-up data centers are located in two other locations in separate time zones.

Their printing and mailing operations were quite large with massive rolls of paper used to print out participant’s quarterly statements. This area is very well secured as is the rest of the facility.

Compliance & Regulatory Overview

GW Representative: Marilyn Collister

This presentation focused on compliance updates including new requirements for fee disclosures. We also received a legal review of cases involving unreasonable fees.

Marketing & Communications

GW Representative: Jason Stockbridge

During this meeting we reviewed our education needs and looked at various prototype campaigns GW has to offer. We discussed our special needs and how the Marketing staff can help us develop communications strategies.

Additional topics discussed:

Update on website enhancements which will be available fourth quarter of 2012. The rollout of the new website for Gwinnett has been delayed due to some of the customized features we are using. SecureFoundation Seminars and how to deliver this complex information. Retired employee seminars featuring Ron Nichols Potential campaigns for the future o National Save for Retirement Week o Annual “Check Up” o Asset Allocation Newsletter content and deadlines Advised Assets Group

GW/AAG Representative: Bridget Witzman

We received an overview of the participant advisory services program to include:

Methodology overview Advisory Services product details o Managed Account participant experience o Participant personalization Advisory Services standing with target risk funds Plan statistics

Secure Foundation Education

GW Representative: John Nielsen

We discussed the challenges of educating participants about this option and the need to have individual discussion about this option. Two seminars are scheduled in September to begin group sessions and we reviewed some of the educational materials. We will have to continue to market this new option to existing participants whereas with new hires we have more opportunity to educate them on this option through the orientation program.

Defined Benefits

GW Representatives: Chip Weule, Frank Porter

This time was spent discussing issues/challenges with daily operations of the plan and opportunities for improvements. Several recent projects were highlighted – Rabbi Trust Calculations, State Tax Audits and Corrections, Death Audits, conversion from JP Morgan to Great-West Platforms and Calculators. Custom Stable Value Fund

GW Representative: Al Cunningham

This presentation included:

Stable Value fund review GW fund management of the value fund Key fund policy review Current investment strategy/portfolio structure Historical results

Overall the fund is being managed within policy, the market value exceeds the book value and historical returns are above market rates

Revenue Sharing

GW Representatives: Tom Pfeifle, Sujin Hajka, Yvette Joy

We reviewed the process for payment of revenue sharing and discussed challenges Gwinnett was having in reconciling how the amount was determined. If GW has a delay in receiving payments from a fund, the share amount would not be posted until the next quarter. This made it difficult for us to reconcile and track. To prevent this confusion, GW agreed to pay us the full amount that should be owed and they would take the risk of not receiving full payment if receipt of fees from a fund was delayed.

NEXT SECTION Progress By Plan Starting Starting Completed % of Plan Complete % Completed Remaining % Remaining Plan Name County Percentage of Total (To-Date) (To-Date) (of Total) Counts (of Total) Schedule A* 1 N/A 1 N/A N/A 0 N/A Schedule B 176 18.05% 176 100.00% 18.05% 0 N/A Schedule C 55 5.64% 55 100.00% 5.64% 0 N/A Pre-Amended Plan 463 47.49% 101 21.81% 10.36% 362 37.13% Amended Plan 280 28.72% 72 25.71% 7.38% 208 21.33% Totals 975 100.00% 405 41.54% 41.54% 570 58.46% * Data Clean-up

Completion By Month - 2012 Plan Name Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 2012 Totals Schedule A 0 0 0 0 0 1 0 1 Schedule B 0 0 0 164 0 12 0 176 Schedule C 0 0 0 53 0 2 0 55 Pre-Amended Plan 0 9 4 49 6 7 26 101 Amended Plan 2 9 4 41 4 4 8 72 Totals 2 18 8 307 10 26 34 405

Note: These counts are through 07/30/2012

NEXT SECTION

NEXT SECTION 2012 Goals

Implementation of 457(b) Roth Implementation of Secure Foundations Option for DC Plans Retirement Seminars – Scheduled for September 20th. Revenue Sharing Custom Statement - Newsletter, Articles and Messaging Quarterly Push Campaigns Participant Satisfaction Survey RPMC and Investment Committee Satisfaction Survey Retiree Outreach Services Deferred Vested Audit and payment of Term Vested participants – 42% Complete Selection of Mid-Cap Investment Managers Selection of Fixed Income Investment Managers Exploration of Liability Driven Investment Opportunities and Annuitizing Retirement Payments Establishment of Goals for DB and OPEB Trust funding levels Implementation of Investment Consulting and Planning services for DC Participants

Highlighted goals have been accomplished.

NEXT SECTION

Next Meeting – November 15, 2012

Gwinnett County Justice and Administration Center (GJAC) 75 Langley Drive Lawrenceville, GA 30046

Facilities Management Conference Room C – 2nd Floor

TOPICS OF INTEREST

Vendor Renewals o BNY Mellon o Bryan Cave

Appointment for Public Safety Member (Ken Chadwick’s appointment ends 12/31/2012)

Appointment for Investment Committee (Phil Hoskins’ appointment ends 12/31/2012)

Appointment for Audit Committee (RPMC Member appointment ends 12/31/2012)

Appointment for Audit Committee (Deputy Department Director – Tom Savage ends 12/31/2012)

Presentation of Education Plan by Great West

Next Year Goal Setting

Members - RPMC Names Appointment Term Term Authority Limit Citizen (not David Crews Board of 4 years 2 member of system) Commissioners 12/31/2014 (Serving 2nd Term) County Glenn Stephens Ex Officio Incumbent N/A Administrator County Employee- Ken Chadwick County Initial 2 years, 2 Public Safety Administrator 4 thereafter 12/31/2012 County Employee- Ashley Stinson County 4 years 2 General Administrator 12/31/2014 Chief Financial Aaron Bovos Ex Officio Incumbent N/A Officer Director of Human Kenneth Poe Ex Officio Incumbent N/A Resources Appointee of County Jim Underwood County Initial 3 years, 2 Administrator Administrator 4 thereafter 12/31/2013 (Serving 2nd Term)

Officer Terms: Chairman – 2 years limited to 2 consecutive terms Vice Chairman – 2 years limited to 2 consecutive terms

Chairman Elected Term Expires Terms Served Kenneth Poe 1/1/2012 12/31/2013 1

Vice Chairman Elected Term Expires Terms Served David Crews 1/1/2012 12/31/2013 1

Members – Names Appointment Term Term Investment Authority Limit Committee Department Director Phil Hoskins County 3 years, 1 Administrator rotates 12/31/2012 County Attorney or Mike Ex Officio Incumbent N/A designee Ludwiczak Director or Deputy Karen Ex Officio Incumbent N/A Director, Finance Karasinski

Investment Bill Ex Officio Incumbent N/A Manager, Finance Rodenbeck

Treasury Division Paul Turner Ex Officio Incumbent N/A Director, Finance

Officer Terms: Chairman – 1 year

Members – Audit Names Appointment Term Term Committee Authority Limit Appointed Member David Crews RPMC 3 years, 1 of RPMC rotates Expires 12/31/2012 Deputy Department Tom Savage County 3 years, 1 Director Administrator rotates Expires 12/31/2012 Director or Deputy Maria Woods Ex Officio Incumbent N/A Director, Finance

Accounting Division Buffy Ex Officio Incumbent N/A Director, Finance Alekzulian Deputy Director or Debbi Ex Officio Incumbent N/A Section Manager of Davidson Benefits and Retirement Plans, Human Resources

Officer Terms: Chairman – 1 year