Tacoma Employees' Retirement System VV Asset Allocation Total Fund Quarter Ended 12/31/10

Tacoma Employees’ Retirement System Investment Performance Analysis December 31, 2010 Table of Contents

TACOMA EMPLOYEES’ RETIREMENT SYSTEM 4th Quarter 2010

I. MARKET ENVIRONMENT

II. TOTAL FUND

III. U.S. EQUITY Northern Trust S&P 500 Index Composite Tab 1 Northern Trust Large Cap Growth Tab 2 Northern Trust Small Cap Core Tab 3 INTECH Tab 4 Research Affiliates Tab 5

IV. NON-U.S. EQUITY Northern Trust EAFE Index Tab 6 Northern Trust EAFE Index (Hedged) Tab 7 Northern Trust Emerging Markets Index Tab 8 TT International Tab 9

1 V. U.S. CORE FIXED INCOME BlackRock US Debt Fund Tab 10 Metropolitan West Tab 11

VI. HIGH YIELD Post Advisory Group Tab 12

VII. REAL ESTATE Adelante Capital Management Tab 13

VIII. PRIVATE EQUITY

VIII. GLOSSARY

2 Market Environment VV Overview of Major Asset Classes As of 12/31/10

Returns 10 Year Indices Legend Qtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs Std Dev U.S. Equity (Wilshire 5000) w 11.59 17.16 17.16 -1.92 2.90 2.50 9.50 19.29 U.S. Bonds (Barclays Aggregate) a -1.30 6.54 6.54 5.91 5.80 5.84 6.89 3.66 Non U.S. Equity (ACWI X US Net) x 7.20 11.15 11.15 -5.03 4.82 5.54 -- 22.93 Developed Equity (EAFE Net) m 6.61 7.75 7.75 -7.01 2.46 3.50 5.85 22.36 Emerging Equity (Emg Mkts Net) z 7.34 18.87 18.87 -0.32 12.78 15.89 -- 28.03 Int'l Bonds (Citigroup Non-US Gov't Bond) s -1.45 5.21 5.21 6.54 7.59 7.42 7.10 10.27 Treasury Bills (91 Day) n 0.04 0.13 0.13 0.79 2.42 2.39 3.72 0.92 Consumer Price Index b 0.34 1.50 1.50 1.44 2.18 2.34 2.50 2.23

Last 10 Years(1/01 to 12/10) Previous 10 Years(1/91 to 12/00) 20.0 18.0 w 16.0 16.0 z 14.0

12.0 12.0

10.0 Return Return 8.0 s 8.0 a m a s x 6.0 4.0 m n n b w 4.0 b 0.0 2.0 0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 Annual Standard Deviation Annual Standard Deviation 1 Market Environment VV U.S. Common Stocks As of 12/31/10

Returns Qtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs Indices Standard & Poor's 500 10.76 15.05 15.05 -2.87 2.29 1.41 9.14 Wilshire 5000 11.59 17.16 17.16 -1.92 2.90 2.50 9.50 Wilshire 4500 15.31 28.43 28.43 2.37 5.44 6.15 10.90 Wilshire US Large Cap 11.01 15.83 15.83 -2.61 2.59 1.80 9.22 Wilshire US Small Cap 16.32 28.94 28.94 4.40 6.29 8.04 12.18 Wilshire Real Est. Secs 8.18 29.12 29.12 0.12 2.32 10.34 10.86

Styles Wilshire US Large Growth 11.60 15.02 15.02 -0.53 3.57 0.37 8.62 Wilshire US Large Value 10.41 16.56 16.56 -4.75 1.41 3.09 9.47 Wilshire US Small Growth 16.66 31.08 31.08 4.07 6.75 6.03 10.26 Wilshire US Small Value 15.98 26.76 26.76 4.81 5.79 9.69 13.65

Sectors (Wilshire 5000) Consumer Discretionary 13.33 30.06 30.06 5.46 3.95 -- -- Consumer Staples 6.39 14.02 14.02 2.90 7.45 -- -- Energy 22.30 24.21 24.21 -2.12 8.62 -- -- Financials 11.22 15.24 15.24 -12.27 -7.61 -- -- Health Care 4.90 5.98 5.98 -0.80 2.20 -- -- Industrials 13.51 27.84 27.84 -2.46 3.65 -- -- Information Technology 11.15 12.24 12.24 1.22 5.37 -- -- Materials 20.09 25.67 25.67 0.46 9.14 -- -- Telecommunication Services 6.95 18.42 18.42 -2.80 6.39 -- -- Utilities 2.24 8.02 8.02 -4.45 4.50 -- --

Index Definitions Style Definitions (Wilshire Style Indices) Wilshire 5000: All publicly traded U.S. corporations Large Co: Largest 750 companies in the Wilshire 5000 Wilshire 4500: All Wilshire 5000 companies excluding large S&P500 companies Small Co: Next 1750 companies in the Wilshire 5000 Wilshire US Large Cap: Largest 750 publicly traded companies Value: Relatively low P/E and P/B ratios Wilshire US Small Cap: Companies ranking between 750 and 2500 by market capitalization Growth: Relatively high P/E and P/B ratios 2 Market Environment VV U.S. Common Stocks Relative Return As of 12/31/10

Small vs Large Growth vs Value 2.00 1.15 Small Favored Growth Favored 1.87 1.10

1.74 1.05

1.61 1.00

1.48 0.95

1.35 0.90

1.22 0.85

1.09 0.80

0.96 0.75

0.83 0.70 Large Favored Value Favored 0.70 0.65 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10

Based on Wilshire Style Indices

3 Market Environment U.S. Fixed Income Indices As of 12/31/10

Returns Characteristics (Current Qtr) Indices Legend Qtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs Eff MaturityEff Duration Yld to Mat Barclays Aggregate a -1.30 6.54 6.54 5.91 5.80 5.84 6.89 7.08 4.98 2.97 Barclays Treasury l -2.64 5.88 5.88 5.11 5.47 5.42 6.66 6.67 5.28 1.88 Barclays Credit (Corporate) c -1.86 8.46 8.46 6.85 5.98 6.54 7.49 10.09 6.40 3.87 Barclays Mortgage m 0.24 5.36 5.36 6.52 6.34 5.89 6.85 6.21 4.16 3.67 Barclays High Yield e 3.22 15.11 15.11 10.38 8.92 8.89 10.01 6.98 4.32 7.51 Citigroup High Grade h -2.94 12.44 12.44 8.01 5.97 7.60 8.34 24.64 12.21 5.28 Barclays Universal u -1.04 7.16 7.16 6.01 5.91 6.08 7.06 7.10 4.94 3.31 Barclays US TIPS t -0.65 6.31 6.31 4.97 5.33 7.02 -- 8.86 5.50 2.78

Current Qtr Last Year 4.5 15.5 e 3.65 13.95 e 2.8 12.4 h 1.95 10.85 1.1 9.3 c 0.25 m 7.75 u Return -0.6 Return 6.2 at t l u m -1.45 a 4.65 c -2.3 3.1 l -3.15 h 1.55 -4.0 0.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Duration Duration 4 Market Environment VV U.S. Fixed Income Markets Historical Spread Comparison to Treasuries As of 12/31/10 20.00

18.00

16.00

14.00

12.00

10.00

8.00 Current Yield Spread Current Yield 6.00

4.00

2.00

0.00 03/01 03/02 03/03 03/04 03/05 03/06 03/07 03/08 03/09 03/10

Current Qtr Median Spread Description Legend Spread (10 Years) Barclays Mortgage 2.07 2.15 GIC's 5 Year 1.54 2.26 Barclays Long Agencies 1.07 0.51 Barclays AAA Long Corp 0.88 1.01 Barclays BAA Long Corp 2.52 2.29 Barclays High Yield 5.87 6.41 5 Market Environment U.S. Fixed Income Markets Yield Spread To Treasuries As of 12/31/10

Treasury Yield Curve Comparative Yields 9.0 12.0

8.0 10.7

9.4 7.0 8.1 6.0 e 6.8 5.0 1 Year Ago Current Treasury 5.5 h 4.0 Current Treasury 4.2

Yield to MaturityYield to Maturity Yield to Maturity m c 3.0 u 2.9 a t 2.0 1.6 l

1.0 0.3

0.0 -1.0 0.0 5.0 10.0 15.0 20.0 25.0 0.0 5.0 10.0 15.0 20.0 25.0 Maturity Maturity

Description Legend Eff Maturity Yield to Mat Barclays Aggregate a 7.08 2.97 Barclays Treasury l 6.67 1.88 Barclays Credit c 10.09 3.87 Barclays Mortgage m 6.21 3.67 Barclays High Yield e 6.98 7.51 Citigroup High Grade h 24.64 5.28 Barclays Universal u 7.10 3.31 Barclays U.S. TIPS t 8.86 2.78

6 Market Environment VV International Markets As of 12/31/10 Returns 10 Year Qtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs Std Dev Equity(in U.S. dollars) U.S. (S & P 500) 10.76 15.05 15.05 -2.87 2.29 1.41 9.14 18.70 Non U.S. (ACWI X U.S.) Net 7.20 11.15 11.15 -5.03 4.82 5.54 -- 22.93 Developed (EAFE) Net 6.61 7.75 7.75 -7.01 2.46 3.50 5.85 22.36 Emerging (Emg Mkts) Net 7.34 18.87 18.87 -0.32 12.78 15.89 -- 28.03 Europe 4.50 3.88 3.88 -8.90 2.85 3.26 8.26 24.41 Pacific 10.64 15.92 15.92 -2.91 1.57 3.98 2.76 20.67 France 1.74 -4.11 -4.11 -10.49 1.78 2.01 7.92 26.22 Germany 9.49 8.44 8.44 -9.77 6.20 3.89 7.49 30.78 Japan 12.12 15.44 15.44 -4.60 -2.45 1.01 0.66 20.73 United Kingdom 6.04 8.76 8.76 -6.97 2.64 3.47 7.53 22.40

Equity(in local currency) Non U.S. (ACWI X US) Net 6.03 7.79 7.79 -5.67 1.48 ------Developed (EAFE) Net 5.73 4.93 4.93 -7.88 -1.18 0.19 4.75 19.14 Emerging (Emg Mkts) Net 6.40 14.81 14.81 0.26 11.51 14.73 -- 23.32 Europe 5.03 6.89 6.89 -5.87 1.03 0.43 8.54 20.18 Pacific 7.08 2.24 2.24 -11.05 -5.09 0.20 0.30 19.37 France 3.69 2.70 2.70 -7.84 -0.78 -1.55 7.70 22.38 Germany 11.27 15.81 15.81 -7.19 3.47 0.24 7.43 27.44 Japan 8.83 0.54 0.54 -14.26 -9.50 -2.39 -1.90 21.38 United Kingdom 6.81 12.26 12.26 0.80 4.57 3.00 8.67 17.14

% Change in Exchange Rates Euro vs Dollar -1.73 -6.50 -6.50 -2.83 2.61 3.63 -- 11.04 Yen vs Dollar 3.00 14.78 14.78 11.26 7.79 3.48 2.61 11.49 Pound vs Dollar -0.64 -3.05 -3.05 -7.69 -1.83 0.47 -1.03 10.84

International Fixed Income Citigroup Non-US Gov't Bond -1.45 5.21 5.21 6.54 7.59 7.42 7.10 10.27 Citigroup World Bond -1.76 5.17 5.17 6.15 7.08 7.00 7.00 8.59 Citigroup Non-US Hedged -2.05 2.48 2.48 4.26 4.15 4.64 6.88 3.18 Barclays Global Aggregate -1.33 5.54 5.54 5.75 6.67 6.74 6.91 6.72 7 Market Environment VV U.S. Dollar Cost of Foreign Currencies As of 12/31/10 0.60 Weaker Dollar 0.50

0.40

0.30

0.20

0.10

-0.00

-0.10

-0.20

-0.30 Stronger Dollar -0.40 03/01 06/02 09/03 12/04 03/06 06/07 09/08 12/09

Description Legend Japanese Yen U.K. Pound Euro Canadian Dollar Chinese Yuan

8 Tacoma Employees' Retirement System VV Asset Allocation Total Fund Quarter Ended 12/31/10

Intl Intl Real Special As Allocated Manager Name Equity Bonds Cash Equity Bonds Estate Invest Other To Manager $(000) % $(000) % $(000) % $(000) % $(000) % $(000) % $(000) % $(000) % $(000) % Northern Trust S&P 500 Composite 122,285 11.3 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 122,285 11.3 Northern Trust Large Cap Growth 31,045 2.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 31,045 2.9 Northern Trust Small Cap Core 34,929 3.2 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 34,929 3.2 INTECH 30,197 2.8 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 30,197 2.8 Research Affiliates 38,748 3.6 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 38,748 3.6 Equity Composite 257,203 23.8 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 257,204 23.8

BlackRock US Debt Index 0.0 41,496 3.8 0.0 0.0 0.0 0.0 0.0 0.0 41,496 3.8 Metropolitan West 0.0 278,562 25.8 -29,842 -2.8 0.0 0.0 0.0 0.0 0.0 248,720 23.0 Core Fixed Income Composite 0 0.0 320,058 29.6 -29,842 -2.8 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 290,216 26.8

Cash/Sec-Lend 0.0 0.0 5,977 0.6 0.0 0.0 0.0 0.0 0.0 5,977 0.6 Cash/Sec-Lend Composite 0 0.0 0 0.0 5,977 0.6 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 5,977 0.6

Northern Trust EAFE Index 0.0 0.0 0 0.0 95,889 8.9 0.0 0.0 0.0 0.0 95,889 8.9 Currency Overlay Account 0.0 0.0 -1,546 -0.1 0.0 0.0 0.0 0.0 0.0 -1,546 -0.1 Northern Trust Emerging Markets 0.0 0.0 0.0 59,450 5.5 0.0 0.0 0.0 0.0 59,450 5.5 TT International 0.0 0.0 2,420 0.2 96,797 9.0 0.0 0.0 0.0 0.0 99,217 9.2 Int'l Equity Composite 0 0.0 0 0.0 873 0.1 252,136 23.3 0 0.0 0 0.0 0 0.0 0 0.0 253,009 23.4

Adelante Capital Mgmnt 0 0.0 0.0 1,529 0.1 0.0 0.0 44,891 4.2 0.0 0.0 46,420 4.3 INVESCO Core Real Estate U.S.A., LLC 0.0 0.0 0 0.0 0.0 0.0 41,445 3.8 0.0 0.0 41,445 3.8 Real Estate Composite 0 0.0 0 0.0 1,529 0.1 0 0.0 0 0.0 86,336 8.0 0 0.0 0 0.0 87,865 8.1

Northern Trust S&P 500 103,015 9.5 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 103,015 9.5 HarbourVest Dover Street VII 0.0 0.0 0.0 0.0 0.0 0.0 7,160 0.7 0.0 7,160 0.7 HarbourVest Int'l Private Equity VI 0.0 0.0 0.0 0.0 0.0 0.0 189 0.0 0.0 189 0.0 Private Equity Composite 103,015 9.5 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 7,350 0.7 0 0.0 110,365 10.2

Post Advisory Group 0 0.0 74,353 6.9 2,287 0.2 0.0 0.0 0.0 0.0 0.0 76,640 7.1 High Yield Composite 0 0.0 74,353 6.9 2,287 0.2 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 76,640 7.1 As Invested by Managers 360,218 33.3 394,411 36.5 -19,175 -1.8 252,136 23.3 0 0 86,336 8.0 7,350 0.7 0 0 1,081,276 100.0 As Allocated to Managers 257,204 23.8 290,216 26.8 5,977 0.6 253,009 23.4 0 0 87,865 8.1 110,365 10.2 76,640 7.1 1,081,276 100.0 Total Fund Policy Targets 254,100 23.5 302,757 28.0 0 254,100 23.5 0 86,502 8.0 108,128 10.0 75,689 7.0 1,081,276 100.0 1 Tacoma Employees' Retirement System VV Asset Allocation - as Invested by Managers Total Fund Quarters Ended 12/31/10

100 Domestic Equity Intl Equity 90 Domestic Fixed Real Estate 80 Cash & Equiv 70 Special Invest Other 60

Actual (Target) 03/08 06/08 09/08 12/08 03/09 06/09 09/09 12/09 03/10 06/10 09/10 12/10 Domestic Equity % 39.5 (40.0) 39.7 (40.0) 39.8 (40.0) 38.3 (40.0) 27.9 (21.0) 28.3 (21.0) 30.9 (21.0) 31.0 (21.0) 32.4 (21.0) 31.6 (23.5) 32.3 (23.5) 33.3 (23.5) Intl Equity % 15.6 (15.0) 15.8 (15.0) 13.2 (15.0) 12.8 (15.0) 21.2 (21.0) 22.6 (21.0) 22.2 (21.0) 20.9 (21.0) 21.4 (21.0) 21.0 (23.5) 22.4 (23.5) 23.3 (23.5) Domestic Fixed % 18.4 (20.0) 20.4 (20.0) 24.8 (20.0) 27.7 (20.0) 27.7 (25.0) 37.8 (25.0) 36.0 (25.0) 37.2 (25.0) 33.8 (25.0) 36.0 (28.0) 37.0 (28.0) 36.5 (28.0) Real Estate % 12.6 (15.0) 12.4 (15.0) 12.7 (15.0) 9.8 (15.0) 5.5 (8.0) 6.3 (8.0) 7.1 (8.0) 7.5 (8.0) 7.8 (8.0) 8.1 (8.0) 4.1 (8.0) 8.0 (8.0) Cash & Equiv % 4.1 (0.0) 1.7 (0.0) -0.6 (0.0) 0.4 (0.0) 2.2 (0.0) 4.5 (0.0) 3.4 (0.0) 3.1 (0.0) 4.2 (0.0) 2.9 (0.0) 3.6 (0.0) -1.8 (0.0) Special Invest % 0.0 (10.0) 0.4 (10.0) 0.4 (10.0) 0.4 (10.0) 0.4 (10.0) 0.4 (10.0) 0.6 (10.0) 0.7 (10.0) Other % 9.8 (10.0) 10.1 (10.0) 10.2 (10.0) 11.0 (10.0) 15.6 (15.0) 0.0 (15.0) 0.0 (15.0) 0.0 (15.0) 0.0 (15.0) 0.0 (7.0) 0.0 (7.0) 0.0 (7.0)

Total Value ($mil) 1079.1 1058.0 958.0 767.4 701.7 805.6 918.7 960.6 1002.2 942.3 1025.4 1081.3

2 Tacoma Employees' Retirement System VV Fund Return Table Quarter Ended 12/31/10

Since Inception Inception Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years 12/31/00 Date Return Equity Composite 11.62 24.41 10.45 17.30 -2.88 2.50 3.38 9/30/84 10.90 Int'l Equity Composite 7.01 21.49 6.96 10.73 -8.66 2.38 2.96 3/31/88 4.75 Int'l Equity Composite (Unhedged) 7.40 25.91 9.30 11.80 -7.13 3.40 3.47 3/31/88 4.98 Core Fixed Income Composite -0.52 2.52 6.67 11.30 8.64 7.94 6.91 9/30/81 10.05 High Yield Composite 2.51 8.45 8.91 12.44 7.68 7.15 9/30/05 7.03 Total Fixed Income Composite 0.10 3.70 7.11 11.30 8.59 7.79 6.85 12/31/93 6.78 Real Estate Composite 5.22 19.29 16.32 28.35 -3.89 0.13 9.43 3/31/88 4.98 Private Equity Composite 10.57 23.04 9.56 15.44 3/31/09 32.34 Cash/Sec-Lend 3.87 7.31 9.68 20.36 -0.58 1.58 1.98 9/30/84 4.47 Total Fund 5.78 15.38 8.93 14.37 0.02 4.29 5.95 6/30/79 9.35 Policy Index 5.60 15.08 8.31 12.78 -0.05 3.90 5.00 TERS Expected Return 2.04 4.12 6.24 8.40 8.40 8.40 8.40 6/30/79 9.63 TERS Actuarial Return 1.88 3.80 5.76 7.75 7.75 7.75 7.80 6/30/79 7.32

Indices Since Russell 3000 11.60 24.46 10.37 16.93 -2.02 2.74 2.16 6/30/79 11.38 Standard & Poor's 500 10.76 23.27 9.18 15.05 -2.87 2.29 1.41 6/30/79 11.40 Wilshire 5000 11.59 24.42 10.49 17.16 -1.92 2.90 2.50 6/30/79 11.34 MSCI EAFE Index (N) 6.61 24.18 6.83 7.75 -7.01 2.46 3.50 6/30/79 9.62 MSCI Emerging Mkts (N) 7.34 26.69 16.08 18.87 -0.32 12.78 15.89 6/30/79 MSCI ACWI X US (N) 7.20 24.98 9.42 11.15 -5.03 4.82 5.54 6/30/79 Barclays Aggregate -1.30 1.15 4.68 6.54 5.91 5.80 5.84 6/30/79 8.42 ML US High Yld. BB/B Const. 2.40 9.30 9.64 14.26 8.57 7.61 7.95 6/30/79 Wilshire REIT Index 7.87 22.27 17.10 28.60 0.18 2.42 10.47 6/30/79 11.80 Consumer Price Index 0.34 0.56 0.71 1.50 1.44 2.18 2.34 6/30/79 3.58 91-Day Treasury Bill 0.04 0.08 0.11 0.13 0.79 2.42 2.39 6/30/79 5.92

3 Tacoma Employees' Retirement System VV Performance Comparison Total Returns of Total Fund Portfolios Periods Ended 12/31/10 25%

20% * A

15% * A * A 10% 5th * A 25th Rate of Return Med * * 5% A A 75th * A

0% 95th * A

-5%

1 Quarter 2 Quarters 3 Quarters 1 Year 2 Years 3 Years 5 Years 10 Years

* Total Fund 5.78 (43) 15.38 (31) 8.93 (38) 14.37 (17) 20.56 (11) 0.02 (65) 4.29 (53) 5.95 (10) A Policy Index 5.60 (47) 15.08 (35) 8.31 (49) 12.78 (40) 19.15 (18) -0.05 (65) 3.90 (62) 5.00 (31)

Median 5.41 13.44 8.27 12.19 15.70 1.00 4.39 4.52 Number of Funds 760 752 739 732 688 644 540 348

4 Tacoma Employees' Retirement System VV Sources of Fund Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Manager Name $(000) $(000) $(000) $(000) $(000) $(000) (%) Northern Trust S&P 500 Comp 110,410 12 0 12 11,875 122,285 10.74 Northern Trust Large Cap Grwth 27,761 3 0 3 3,283 31,045 11.81 Northern Trust Small Cap Core 30,035 7 0 7 4,893 34,929 16.27 INTECH 27,471 0 0 23 2,749 30,197 9.92 Research Affiliates 34,723 0 0 6 4,030 38,748 11.59 Equity Composite 230,401 23 0 51 26,831 257,204 11.62

BlackRock US Debt Index 42,029 7 0 7 -533 41,496 -1.28 Metropolitan West 250,077 -387 0 313 -657 248,720 -0.39 Core Fixed Income Composite 292,106 -380 0 320 -1,190 290,216 -0.52

Cash/Sec-Lend 620 27,353 22,047 0 52 5,977 3.87 Cash/Sec-Lend Composite 620 27,353 22,047 0 52 5,977 3.87

Northern Trust EAFE Index 89,173 657 0 20 6,080 95,889 6.68 Currency Overlay Account -1,393 864 0 0 -1,016 -1,546 NA Northern Trust Emerging Mrkts 50,417 5,019 0 19 4,033 59,450 7.25 TT International 91,680 48 22 48 7,559 99,217 8.19 Int'l Equity Composite 229,877 6,587 22 87 16,655 253,009 7.01

Adelante Capital Mgmnt 90,456 -46,949 0 51 2,964 46,420 6.59 INVESCO Core Real Estate USA 0 40,000 0 94 1,540 41,445 3.61

5 Tacoma Employees' Retirement System VV Sources of Fund Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Manager Name $(000) $(000) $(000) $(000) $(000) $(000) (%) Real Estate Composite 90,456 -6,949 0 145 4,503 87,865 5.22

Northern Trust S&P 500 100,820 -8,087 400 13 10,695 103,015 10.76 HarbourVest Dover Street VII 6,181 500 14 28 521 7,160 7.67 HarbourVest Int'l Priv Equity VI 188 0 2 11 14 189 1.75 Private Equity Composite 107,189 -7,587 415 52 11,230 110,365 10.57

Post Advisory Group 74,706 57 0 57 1,935 76,640 2.51 High Yield Composite 74,706 57 0 57 1,935 76,640 2.51

Total Fund 1,025,354 19,103 22,485 712 60,017 1,081,276 5.78

6 Tacoma Employees' Retirement System VV Sources of Portfolio Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Quarter $(000) $(000) $(000) $(000) $(000) $(000) (%) 09/79 NA NA NA NA NA NA 0.64 12/79 NA NA NA NA NA NA -3.77

03/80 NA NA NA NA NA NA -8.48 06/80 NA NA NA NA NA NA 17.88 09/80 NA NA NA NA NA NA -3.29 12/80 NA NA NA NA NA NA 4.99 1980 NA NA NA NA NA NA 9.54 03/81 NA NA NA NA NA NA -0.60 06/81 NA NA NA NA NA NA -2.32 09/81 NA NA NA NA NA NA -7.95 12/81 NA NA NA NA NA NA 8.51 1981 NA NA NA NA NA NA -3.02 03/82 NA NA NA NA NA NA 1.47 06/82 NA NA NA NA NA NA 1.96 09/82 NA NA NA NA NA NA 14.18 12/82 NA NA NA NA NA NA 11.15 1982 NA NA NA NA NA NA 31.30 03/83 NA NA NA NA NA NA 5.63 06/83 NA NA NA NA NA NA 5.57 09/83 NA NA NA NA NA NA -2.32 12/83 NA NA NA NA NA NA -1.19 1983 NA NA NA NA NA NA 7.63 03/84 NA NA NA NA NA NA -3.30 06/84 NA NA NA NA NA 101,646 -2.80

7 Tacoma Employees' Retirement System VV Sources of Portfolio Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Quarter $(000) $(000) $(000) $(000) $(000) $(000) (%) 09/84 101,646 NA NA NA NA 108,864 4.60 12/84 108,864 1,633 NA NA 4,601 115,098 4.89 1984 NA NA NA NA NA 115,098 3.12 03/85 115,098 -2,168 NA NA 7,347 120,277 4.77 06/85 120,277 -300 NA NA 10,560 130,537 7.85 09/85 130,537 961 NA NA -735 130,762 -0.39 12/85 130,762 0 NA NA 12,539 143,301 10.26 1985 115,098 -1,507 NA NA 29,711 143,301 24.10 03/86 143,301 0 NA NA 12,838 156,140 9.47 06/86 156,140 0 NA NA 4,889 161,029 2.92 09/86 161,029 0 NA NA -4,203 156,826 -2.21 12/86 156,826 0 NA NA 7,335 164,161 4.73 1986 143,301 0 NA NA 20,860 164,161 15.39 03/87 164,161 0 NA NA 16,134 180,295 9.86 06/87 180,295 -53 NA NA 8,297 188,539 0.64 09/87 188,539 -7,338 NA NA 2,839 184,040 1.63 12/87 184,040 7,143 NA NA -19,182 172,000 -5.92 1987 164,161 -249 NA NA 8,087 172,000 5.71 03/88 172,000 -1,157 NA NA 9,353 180,196 4.39 06/88 180,196 -58 NA NA 7,291 187,429 3.95 09/88 187,429 228 NA NA 1,096 188,753 0.41 12/88 188,753 -1,570 NA NA 6,300 193,484 2.04 1988 172,000 -2,556 NA NA 24,040 193,484 11.18 03/89 193,484 3,493 4,393 41 8,145 200,688 4.14 06/89 200,688 3,773 3,864 46 12,176 212,728 6.03

8 Tacoma Employees' Retirement System VV Sources of Portfolio Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Quarter $(000) $(000) $(000) $(000) $(000) $(000) (%) 09/89 212,728 3,759 3,496 51 14,819 227,759 6.95 12/89 227,759 3,896 2,616 49 2,899 231,889 1.33 1989 193,484 14,921 14,369 186 38,039 231,889 19.66 03/90 231,889 3,838 4,830 44 -8,523 222,330 -3.79 06/90 222,330 4,121 4,040 47 11,574 233,938 5.19 09/90 233,938 7,542 6,831 43 -23,006 211,599 -9.76 12/90 211,599 4,438 3,323 0 12,625 225,340 5.93 1990 231,889 19,939 19,024 134 -7,331 225,340 -3.26 03/91 225,340 6,421 7,174 0 25,435 250,022 10.80 06/91 250,022 4,306 4,249 9 -933 249,138 -0.41 09/91 249,138 4,345 4,410 3 16,599 265,669 6.68 12/91 265,669 5,418 2,966 62 16,535 284,593 6.18 1991 225,340 20,490 18,798 74 57,636 284,593 24.99 03/92 284,593 4,434 5,139 0 -7,094 276,794 -2.47 06/92 276,794 4,797 4,203 191 503 277,700 0.11 09/92 277,700 4,714 4,291 173 9,856 287,806 3.47 12/92 287,806 13,722 8,507 216 14,103 306,908 4.66 1992 284,593 27,667 22,140 580 17,368 306,908 5.73 03/93 306,908 4,557 8,089 232 17,496 320,640 5.68 06/93 320,640 10,834 10,983 295 12,674 332,869 3.86 09/93 332,869 5,084 4,859 302 17,514 350,306 5.17 12/93 350,306 6,153 5,069 317 8,171 359,243 2.24 1993 306,908 26,628 29,001 1,146 55,855 359,243 18.02 03/94 359,243 4,845 4,773 310 -10,668 348,337 -3.04 06/94 348,337 5,691 5,154 387 -3,303 345,185 -1.06

9 Tacoma Employees' Retirement System VV Sources of Portfolio Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Quarter $(000) $(000) $(000) $(000) $(000) $(000) (%) 09/94 345,185 6,174 4,725 266 10,994 357,362 3.11 12/94 357,362 5,781 4,018 312 -2,436 356,377 -0.77 1994 359,243 22,492 18,670 1,275 -5,413 356,377 -1.85 03/95 356,377 5,277 6,315 329 20,704 375,714 5.75 06/95 375,714 5,519 5,147 341 23,530 399,275 6.17 09/95 399,275 5,218 5,207 362 23,519 422,443 5.80 12/95 422,443 5,533 3,906 371 22,614 446,312 5.26 1995 356,377 21,547 20,576 1,404 90,367 446,312 25.03 03/96 446,312 5,710 6,613 382 8,526 453,553 1.83 06/96 453,553 5,970 5,950 391 9,899 463,080 2.10 09/96 463,080 6,555 6,685 397 7,614 470,167 1.55 12/96 470,167 6,280 4,285 405 18,183 489,940 3.58 1996 446,312 24,515 23,533 1,576 44,222 489,940 9.36 03/97 489,940 4,985 7,627 392 -9,475 477,431 -2.03 06/97 477,431 5,361 6,390 411 54,657 530,648 11.38 09/97 530,648 5,208 7,400 426 32,895 560,925 6.13 12/97 560,925 7,794 7,271 479 -3,243 557,727 -0.65 1997 489,940 23,349 28,689 1,708 74,834 557,727 15.07 03/98 557,727 4,895 8,879 463 41,555 594,835 7.43 06/98 594,835 5,242 5,346 464 -716 593,550 -0.19 09/98 593,550 4,136 8,111 430 -45,878 543,267 -7.42 12/98 543,267 6,536 5,492 442 57,649 601,518 10.94 1998 557,727 20,809 27,827 1,800 52,610 601,518 10.13 03/99 601,518 5,220 9,279 562 -2,228 594,669 -0.16 06/99 594,669 8,992 10,424 532 34,290 626,995 5.66

10 Tacoma Employees' Retirement System VV Sources of Portfolio Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Quarter $(000) $(000) $(000) $(000) $(000) $(000) (%) 09/99 626,995 6,098 7,843 410 -18,420 606,419 -3.01 12/99 606,419 6,581 5,270 620 85,451 692,561 14.05 1999 601,518 26,891 32,816 2,125 99,093 692,561 16.70 03/00 692,561 6,371 10,180 504 34,970 723,219 5.01 06/00 723,219 6,504 6,796 679 -13,126 709,121 -1.91 09/00 709,121 6,835 7,763 702 18,888 726,379 2.57 12/00 726,379 6,240 6,245 658 -12,805 712,912 -1.86 2000 692,561 25,950 30,984 2,542 27,927 712,912 3.69 03/01 712,912 5,515 9,472 636 -38,938 669,381 -5.58 06/01 669,381 5,160 7,912 640 28,348 694,336 4.15 09/01 694,336 6,044 8,318 636 -46,279 645,147 -6.78 12/01 645,147 36,106 6,518 627 38,567 712,676 5.87 2001 712,912 52,824 32,220 2,539 -18,302 712,676 -2.95 03/02 712,676 6,124 40,260 577 15,794 693,758 2.24 06/02 693,758 5,458 8,460 365 -26,308 664,083 -3.61 09/02 664,083 6,217 8,149 297 -72,412 589,443 -11.07 12/02 589,443 5,660 5,999 0 24,038 613,142 4.11 2002 712,676 23,460 62,868 1,238 -58,888 613,142 -8.76 03/03 613,142 6,056 10,382 159 -7,568 601,089 -1.26 06/03 601,089 8,926 11,464 339 83,969 682,181 13.92 09/03 682,181 9,687 12,080 366 34,217 713,638 4.92 12/03 713,638 10,401 12,183 455 71,744 783,146 9.99 2003 613,142 35,070 46,109 1,319 182,362 783,146 29.82 03/04 783,146 7,170 12,443 392 39,888 817,369 5.06 06/04 817,369 8,658 9,272 517 -9,228 807,011 -1.19

11 Tacoma Employees' Retirement System VV Sources of Portfolio Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Quarter $(000) $(000) $(000) $(000) $(000) $(000) (%) 09/04 807,011 4,451 9,084 440 6,246 808,184 0.73 12/04 808,184 10,665 10,885 563 85,828 893,229 10.57 2004 783,146 30,944 41,684 1,912 122,734 893,229 15.62 03/05 893,229 7,474 13,151 622 -24,878 862,052 -2.86 06/05 862,052 7,757 10,417 619 36,138 894,912 4.13 09/05 894,912 8,730 11,468 708 40,288 931,754 4.43 12/05 931,754 12,988 12,813 671 27,970 959,227 2.93 2005 893,229 36,950 47,849 2,620 79,518 959,227 8.72 03/06 959,227 11,445 17,742 871 68,279 1,020,337 7.05 06/06 1,020,337 16,034 19,180 907 -10,280 1,006,003 -1.10 09/06 1,006,003 13,289 17,270 923 46,494 1,047,593 4.54 12/06 1,047,593 16,178 16,830 1,126 75,894 1,121,709 7.14 2006 959,227 56,946 71,022 3,829 180,387 1,121,709 18.59 03/07 1,121,709 13,349 20,426 922 24,698 1,138,408 2.13 06/07 1,138,408 16,722 19,616 813 29,149 1,163,850 2.48 09/07 1,163,850 16,421 21,687 1,004 26,186 1,183,767 2.18 12/07 1,183,767 21,895 23,302 894 -32,000 1,149,466 -2.78 2007 1,121,709 68,387 85,032 3,632 48,034 1,149,466 3.97 03/08 1,149,466 14,458 23,256 815 -60,739 1,079,113 -5.21 06/08 1,079,113 9,296 13,423 776 -16,242 1,057,969 -1.45 09/08 1,057,969 10,082 15,290 1,060 -93,675 958,026 -8.91 12/08 958,026 13,661 14,641 702 -188,897 767,447 -19.10 2008 1,149,466 47,497 66,610 3,353 -359,553 767,447 -31.15 03/09 767,447 9,814 19,040 230 -56,283 701,709 -7.43 06/09 701,709 12,958 12,224 445 103,637 805,635 14.71

12 Tacoma Employees' Retirement System VV Sources of Portfolio Growth Total Fund Quarter Ended 12/31/10

Beginning Net Distrib & Invest Invest Ending Time Wtd Value Contrib Adm Fees Fees Gain/Loss Value Return Quarter $(000) $(000) $(000) $(000) $(000) $(000) (%) 09/09 805,635 8,647 12,075 636 117,080 918,651 14.48 12/09 918,651 14,005 13,895 562 42,415 960,615 4.55 2009 767,447 45,425 57,234 1,872 206,849 960,615 27.08 03/10 960,615 9,054 15,053 671 48,290 1,002,235 5.00 06/10 1,002,235 12,002 15,889 719 -55,319 942,310 -5.59 09/10 942,310 12,665 14,966 653 85,998 1,025,354 9.07 12/10 1,025,354 19,103 22,485 712 60,017 1,081,276 5.78 2010 960,615 52,825 68,394 2,755 138,986 1,081,276 14.37 Total 101,646 722,846 865,450 39,618 1,154,632 1,081,276 9.35 Period (Sum) (Sum) (Sum) (Sum) (Annualized)

13 Tacoma Employees' Retirement System Total Fund Attribution vs Policy Total Fund 1 Quarter Ending 12/31/10

Allocation Returns Total Fund Return Contribution Composite Policy Allocation Mngmnt Policy Actual Policy Actual Impact Impact Impact Total Equity 23.50 22.47 11.60 11.62 2.73 -0.12 0.01 2.61 Domestic Fixed Income 28.00 28.49 -1.30 -0.52 -0.36 -0.01 0.22 -0.15 High Yield 7.00 7.29 2.40 2.51 0.17 0.01 0.01 0.18 International Equity 23.50 22.42 6.32 7.01 1.49 -0.07 0.15 1.57 Emerging Markets 0.00 0.00 International Fixed Income 0.00 0.00 Real Estate 8.00 8.82 6.25 5.22 0.50 0.05 -0.09 0.46 Cash 0.00 0.06 0.04 3.87 0.00 0.00 0.00 0.00 Alternative Investments 10.00 10.45 10.89 10.57 1.09 0.05 -0.03 1.10 Hedge Fund 0.00 0.00 Other 0.00 0.00 Total Fund 100.00 100.00 5.60 5.78 5.60 -0.08 0.25 5.78

Composite Indices Equity Composite Russell 3000 Core Fixed Income Composite Barclays Aggregate High Yield Composite ML US High Yld. BB/B Const. Int'l Equity Composite International Equity Custom Benchmark Real Estate Composite Real Estate Custom Benchmark Cash 91-Day Treasury Bill Private Equity Composite Private Equity Custom Benchmark

14 Tacoma Employees' Retirement System VV Fund Return Table Quarter Ended 12/31/10

Since Inception Inception Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years 12/31/00 Date Return Northern Trust S&P 500 Composite 10.74 23.20 9.11 15.04 -2.87 2.27 1.42 12/31/90 9.14 Standard & Poor's 500 10.76 23.27 9.18 15.05 -2.87 2.29 1.41 12/31/90 9.14

Northern Trust Large Cap Growth 11.81 26.33 11.50 16.89 3/31/09 34.42 Russell 1000 Growth 11.84 26.38 11.54 16.72 3/31/09 34.06

Northern Trust Small Cap Core 16.27 29.44 16.52 27.09 2.43 4.58 6.41 12/31/90 10.94 Russell 2000 16.25 29.38 16.54 26.85 2.22 4.47 6.33 12/31/90 10.84

INTECH 9.92 22.40 9.12 15.08 -3.17 3/31/07 -1.28 Standard & Poor's 500 10.76 23.27 9.18 15.05 -2.87 3/31/07 -1.06 Standard & Poor's 500 + 1% 11.01 23.77 9.93 16.05 -1.87 3/31/07 -0.06

Research Affiliates 11.59 24.02 9.74 18.59 -1.85 3/31/07 -0.87 Standard & Poor's 500 10.76 23.27 9.18 15.05 -2.87 3/31/07 -1.06 Standard & Poor's 500 + 1% 11.01 23.77 9.93 16.05 -1.87 3/31/07 -0.06

Equity Composite 11.62 24.41 10.45 17.30 -2.88 2.50 3.38 9/30/84 10.90 Policy Index 11.60 24.46 10.37 16.93 -2.34 2.63 1.58 9/30/84 10.75 Russell 3000 11.60 24.46 10.37 16.93 -2.02 2.74 2.16 9/30/84 10.63

Indices Since Russell 3000 11.60 24.46 10.37 16.93 -2.02 2.74 2.16 9/30/84 10.63 Standard & Poor's 500 10.76 23.27 9.18 15.05 -2.87 2.29 1.41 9/30/84 10.68 Wilshire 5000 11.59 24.42 10.49 17.16 -1.92 2.90 2.50 9/30/84 10.58 Wilshire 4500 15.31 29.86 17.04 28.43 2.37 5.44 6.15 9/30/84 10.74

1 Tacoma Employees' Retirement System VV Performance Comparison Total Returns of Equity Portfolios Periods Ended 12/31/10 45%

40%

35%

30% f f f 25% θ w *x χ s ϑ χw *x 20% 5th s ϑ w θ* 25th f f x 15% χ s ϑ Med θ Rate of Return 75th χw *x θ 10% s ϑ χw *x 95th s ϑ f 5% f χ * f w *xs χw x 0% s χw *xs ϑ -5%

-10%

1 Quarter 2 Quarters 3 Quarters 1 Year 2 Years 3 Years 5 Years 10 Years

χ NT S&P 500 Composite 10.74 (76) 23.20 (70) 9.11 (74) 15.04 (73) 21.23 (74) -2.87 (78) 2.27 (80) 1.42 (89) θ NT Large Cap Growth 11.81 (61) 26.33 (48) 11.50 (58) 16.89 (64) f NT Small Cap Core 16.27 (20) 29.44 (28) 16.52 (30) 27.09 (25) 27.48 (45) 2.43 (31) 4.58 (47) 6.41 (42) ϑ INTECH 9.92 (85) 22.40 (76) 9.12 (74) 15.08 (73) 19.65 (81) -3.17 (81) Research Affiliates 11.59 (64) 24.02 (64) 9.74 (69) 18.59 (56) 22.97 (65) -1.85 (69) * Equity Composite 11.62 (64) 24.41 (61) 10.45 (65) 17.30 (61) 21.77 (71) -2.88 (79) 2.50 (77) 3.38 (71) x Russell 3000 11.60 (64) 24.46 (61) 10.37 (65) 16.93 (63) 22.50 (67) -2.02 (71) 2.74 (74) 2.16 (83) s Standard & Poor's 500 10.76 (75) 23.27 (69) 9.18 (74) 15.05 (73) 20.62 (76) -2.87 (78) 2.29 (80) 1.41 (89) w Wilshire 5000 11.59 (64) 24.42 (61) 10.49 (64) 17.16 (62) 22.61 (67) -1.92 (70) 2.90 (72) 2.50 (81)

Median 12.88 26.13 12.95 20.49 26.48 0.03 4.34 5.46 Number of Funds 1772 1768 1768 1768 1739 1702 1558 1081 2 Tacoma Employees' Retirement System VV Equity Fund Structural Characteristics Equity Composite Quarter Ended 12/31/10

% % % Sectors Turn- Manager $(000) # Equity Cash Other ENR MAT IND CDI CST HTH FIN INF TEL UTI Over Northern Trust S&P 500 Composite 122,285 502 100 0 0 12 4 11 11 11 11 16 19 3 3 NA Northern Trust Large Cap Growth 31,045 626 100 0 0 11 5 13 15 9 10 5 31 1 0 NA Northern Trust Small Cap Core 34,929 2,567 100 0 0 6 6 16 13 3 12 20 18 1 3 NA INTECH 30,197 364 100 0 0 9 4 13 13 12 10 11 17 4 6 NA Research Affiliates 38,748 909 100 0 0 12 3 13 13 9 8 20 11 4 6 NA Equity Composite 257,204 2,900 100 0 0 10 4 13 13 11 10 13 17 4 6 NA

Standard & Poor's 500 NA 500 100 0 0 12 4 11 11 11 11 16 19 3 3 NA Russell 1000 Growth NA 627 100 0 0 11 5 13 15 9 10 5 31 1 0 NA Russell 2000 NA 1,973 100 0 0 6 6 16 13 3 12 21 18 1 3 NA Russell 3000 NA 2,951 100 0 0 11 4 12 11 9 11 16 19 3 3 NA

3 Tacoma Employees' Retirement System VV Equity Fund Investment Characteristics Equity Composite Quarter Ended 12/31/10

Growth Average $ Valuation Risk Manager 5 Yrs EPS 5 Yrs Div Market Cap(Mil) P/E P/B YLD ROE Beta DBT/EQT R Square Northern Trust S&P 500 Composite 4.6 4.6 88,756 17.5 2.3 1.9 16.3 1.00 0.44 0.98 Northern Trust Large Cap Growth 9.6 4.5 85,232 18.8 3.9 1.4 21.4 1.00 0.33 0.95 Northern Trust Small Cap Core 0.7 0.4 1,258 38.9 2.0 1.1 7.3 1.26 0.32 0.85 INTECH 5.5 4.6 73,411 17.4 2.4 2.0 18.4 0.95 0.49 0.98 Research Affiliates -0.2 3.9 71,300 17.0 1.8 2.0 13.4 1.06 0.49 0.95 Equity Composite 4.3 4.3 72,803 17.6 2.2 1.9 17.0 0.98 0.48 0.98

Standard & Poor's 500 4.7 4.0 88,731 17.5 2.2 1.9 19.2 1.00 0.72 0.98 Russell 1000 Growth 10.5 5.2 85,311 18.8 3.9 1.4 23.1 1.03 0.61 0.95 Russell 2000 2.1 0.9 1,258 38.9 1.9 1.1 9.5 1.95 0.51 0.85 Russell 3000 4.7 3.7 71,808 18.8 2.2 1.7 17.4 1.15 0.70 0.97

P/B methodology changed 2Q03. See Glossary. 4 Tacoma Employees' Retirement System VV Equity Fund Style Map Quarter Ended 12/31/10 Growth/Value vs Size 150 Large Cap Large Cap Value Growth 125 5000 Wilshire

Large sχ 100 θ ϑ u * 75 wx Wilshire 5000 50

0 SIZE -25

-50

-75

-100

-125

Small Small Cap Small Cap -150 Value zf Growth -150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150 Value VALUE/GROWTH Growth

Name Legend Growth-Value Size Name Legend Growth-Value Size NT S&P 500 Composite χ -2.38 105.10 Standard & Poor's 500 s -2.40 105.08 NT Large Cap Growth θ 58.19 96.37 Russell 1000 Growth u 58.21 96.15 NT Small Cap Core f 8.20 -147.49 Russell 2000 z 7.65 -147.11 INTECH ϑ -5.44 89.44 Russell 3000 x 1.42 73.30 Research Affiliates -40.11 70.52 Equity Composite * -9.85 81.23 Wilshire 5000 w 0.57 74.73 5 Tacoma Employees' Retirement System VV Risk Return 5 Years Ending 12/31/10 7.0 Risk

6.0 Wil5000

5.0 zf 4.0 u

3.0 w Wil5000 x Return * s χ 2.0 Annualized Rate of Total Return

1.0

0.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 Historical Standard Deviation of Total Return

Total Standard Sharpe Total Standard Sharpe Description Legend Return Deviation Ratio Description Legend Return Deviation Ratio NT S&P 500 Composite χ 2.27 19.98 -0.01 Russell 3000 x 2.74 20.24 0.02 NT Small Cap Core f 4.58 23.77 0.09 Equity Composite * 2.50 20.66 0.00 Wilshire 5000 w 2.90 20.17 0.02 Standard & Poor's 500 s 2.29 19.66 -0.01 Russell 1000 Growth u 3.76 19.94 0.07 Russell 2000 z 4.47 23.74 0.09 6 Tacoma Employees' Retirement System VV Growth of One Dollar Northern Trust S&P 500 Composite Quarter Ended 12/31/10

7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 Value 3.00 2.50 2.00 1.50 1.00 0.50 12/90 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10

Return $ Legend 3 Years Inception 12/31/90 Value Total -2.87 9.14 5.75 Standard & Poor's 500 -2.87 9.14 5.75

1 Tacoma Employees' Retirement System VV Growth of One Dollar Northern Trust Large Cap Growth Quarter Ended 12/31/10

1.70

1.60

1.50

1.40

1.30 Value 1.20

1.10

1.00

0.90 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10

Return $ Legend 1 Year & 3 Quarters Inception 3/31/09 Value Total 34.42 34.42 1.68 Russell 1000 Growth 34.06 34.06 1.67

1 Tacoma Employees' Retirement System VV Growth of One Dollar Northern Trust Small Cap Core Quarter Ended 12/31/10

9.00

8.00

7.00

6.00

5.00

Value 4.00

3.00

2.00

1.00

0.00 12/90 12/91 12/92 12/93 12/94 12/95 12/96 12/97 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10

Return $ Legend 3 Years Inception 12/31/90 Value Total 2.43 10.94 7.98 Russell 2000 2.22 10.84 7.84

1 Tacoma Employees' Retirement System VV Growth of One Dollar INTECH Quarter Ended 12/31/10

1.10

1.00

0.90

0.80 Value

0.70

0.60

0.50 12/07 12/08 12/09 12/10

Return $ Legend 3 Years Inception 3/31/07 Value Total -3.17 -1.28 0.95 Standard & Poor's 500 -2.87 -1.06 0.96

1 Tacoma Employees' Retirement System VV Equity Fundamental Drift Style Map 3/31/07 - 12/31/10 Growth/Value vs Size over Time 150 Large Cap Large Cap INTECH Standard & Poor's 500 Value Growth 125 5000 Date Growth-Value Size Growth-Value Size Wilshire

Large 3/31/07 -9.81 85.56 -9.31 106.38 100 6/30/07 -9.67 86.39 -9.80 102.71 9/30/07 -2.62 97.12 -8.89 106.36 75 Wilshire 12/31/07 5.90 97.55 -4.08 105.19 5000 3/31/08 5.47 100.02 -5.69 106.09 105.99 50 6/30/08 6.09 99.72 -0.02 9/30/08 7.87 97.13 -5.84 105.25 12/31/08 3.55 96.05 -7.35 104.39 25 3/31/09 -18.86 97.64 -13.89 105.26 6/30/09 -19.74 94.33 -13.40 103.29 0 9/30/09 -20.45 94.86 -15.43 101.54 SIZE 12/31/09 4.93 94.40 -5.26 104.20 -25 3/31/10 7.82 97.03 -4.78 104.95 6/30/10 1.75 95.93 -7.01 104.82 -50 9/30/10 -8.42 91.96 -3.24 105.06 12/31/10 -5.44 89.44 -2.40 105.08 -75

-100

-125

Small Small Cap Small Cap Value Growth -150 -150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150 Value VALUE/GROWTH Growth

2 Tacoma Employees' Retirement System VV Equity Structural Characteristics INTECH Quarter Ended 12/31/10

# % % % Sectors Turn- Quarter $(000) Stocks Equity Cash Other ENR MAT IND CDI CST HTH FIN INF TEL UTL Over 03/31/07 55,405 357 100 0 0 6 4 10 15 14 12 21 10 4 6 NA 06/30/07 57,582 370 100 0 0 5 4 8 17 12 12 19 11 4 8 NA 09/30/07 58,536 294 100 0 0 9 4 11 14 11 13 12 12 5 9 NA 12/31/07 58,156 292 100 0 0 12 4 13 12 10 14 11 13 5 7 NA 03/31/08 52,206 339 100 0 0 13 3 14 10 12 14 12 13 5 6 NA 06/30/08 51,285 381 100 0 0 14 3 13 9 12 14 13 12 4 6 NA 09/30/08 47,121 413 100 0 0 14 3 13 10 12 12 14 13 4 4 NA 12/31/08 36,877 385 100 0 0 14 3 13 10 12 14 13 13 4 3 NA 03/31/09 15,839 365 100 0 0 13 3 13 10 15 14 10 14 5 3 NA 06/30/09 18,265 432 100 0 0 13 2 11 11 15 13 12 15 4 4 NA 09/30/09 20,953 429 100 0 0 12 3 8 12 12 12 14 17 5 6 NA 12/31/09 22,265 417 100 0 0 11 3 8 13 10 11 13 22 4 4 NA 03/31/10 23,480 406 100 0 0 11 3 8 12 11 12 13 25 3 2 NA 06/30/10 24,672 380 100 0 0 9 2 9 11 13 16 11 21 3 4 NA 09/30/10 27,471 354 100 0 0 8 2 12 11 14 14 14 17 4 5 NA 12/31/10 30,197 364 100 0 0 9 4 13 13 12 10 11 17 4 6 NA

Standard & Poor's 500 NA 500 100 0 0 12 4 11 11 11 11 16 19 3 3 NA ENR - Energy CDI - Consumer Discretionary FIN - Financials MAT- Materials CST - Consumer Staples INF - Information Technology IND - Industrials HTH- Health Care TEL - Telecommunication Services UTL - Utilities *Wilshire began using GICS sectors starting 1q03. 3 Tacoma Employees' Retirement System VV Equity Investment Characteristics INTECH Quarter Ended 12/31/10

Growth Average $ Valuation Risk Quarter 5 Yrs EPS 5 Yrs Div Market Cap(Mil) P/E P/B YLD ROE Beta Debt/Eqt R Square 03/31/07 11.9 4.9 75,799 18.6 3.0 1.8 19.7 0.95 0.46 0.95 06/30/07 13.1 5.0 78,537 19.1 3.1 1.7 20.4 0.96 0.46 0.95 09/30/07 14.8 5.2 104,831 18.7 3.1 1.7 21.6 0.98 0.44 0.93 12/31/07 15.8 5.2 104,045 18.3 3.0 1.7 21.7 1.02 0.42 0.93 03/31/08 16.5 6.3 93,490 17.1 2.6 2.0 20.9 1.02 0.40 0.93 06/30/08 16.0 6.4 86,602 17.3 2.4 2.2 21.0 0.98 0.41 0.94 09/30/08 16.2 6.3 81,233 15.5 2.4 2.2 21.2 1.02 0.41 0.96 12/31/08 15.3 6.3 73,238 11.4 1.8 2.8 21.1 1.02 0.41 0.97 03/31/09 12.9 7.0 63,970 12.4 1.7 3.0 24.2 0.97 0.49 0.97 06/30/09 10.5 6.7 68,833 15.1 1.9 2.6 23.1 0.94 0.48 0.98 09/30/09 9.3 6.2 72,471 24.7 2.0 2.2 21.6 0.94 0.49 0.98 12/31/09 9.1 5.7 77,478 31.3 2.1 1.8 20.3 1.03 0.47 0.98 03/31/10 6.8 4.6 80,258 20.5 2.5 1.7 17.1 1.05 0.48 0.98 06/30/10 6.5 4.2 70,499 15.4 1.9 2.2 17.2 1.03 0.44 0.98 09/30/10 5.2 4.1 70,603 17.4 2.0 2.1 17.1 0.98 0.48 0.97 12/31/10 5.5 4.6 73,411 17.4 2.4 2.0 18.4 0.95 0.49 0.98

Standard & Poor's 500 4.7 4.0 88,731 17.5 2.2 1.9 19.2 1.00 0.72 0.98

P/B methodology changed 2Q03. See Glossary. 4 Tacoma Employees' Retirement System VV Equity Fund Investment Characteristics - Historical Comparison INTECH vs. Standard & Poor's 500 36.0 3.0 P/E Ratio P/B Ratio

24.0 2.0

12.0 1.0

0.0 0.0 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Port 12.41 15.07 24.70 31.31 20.51 15.41 17.39 17.40 Port 1.73 1.88 1.96 2.06 2.53 1.91 2.02 2.38 Index 13.17 16.70 25.54 30.79 21.90 16.62 17.12 17.48 Index 1.61 1.75 1.91 1.96 2.14 1.85 2.03 2.17

6.0 99.0 Dividend Yield Market Cap (Bil)

4.0 66.0

2.0 33.0

0.0 0.0 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Port 2.99 2.60 2.22 1.85 1.74 2.18 2.10 2.00 Port 63.97 68.83 72.47 77.48 80.26 70.50 70.60 73.41 Index 2.81 2.35 2.04 1.94 1.87 2.19 2.03 1.87 Index 67.35 71.38 77.24 81.93 84.68 75.23 80.96 88.73 Portfolio Index 5 Tacoma Employees' Retirement System VV Equity Return Analysis INTECH Quarter Ended 12/31/10

Net Management Effect Total Equity Sector Stock Quarter Index* Return Return Timing Weighting Selection Trading Total 06/07 6.28 3.93 3.93 -0.00 -1.01 -0.98 -0.36 -2.35 09/07 2.05 1.66 1.74 -0.09 -1.11 0.53 0.27 -0.40 12/07 -3.33 -0.65 -0.57 -0.08 0.88 1.52 0.37 2.68

03/08 -9.46 -10.23 -10.15 -0.08 0.53 -1.77 0.54 -0.78 06/08 -2.72 -1.76 -1.68 -0.08 0.57 1.05 -0.58 0.96 09/08 -8.37 -8.12 -8.04 -0.08 0.76 0.08 -0.51 0.25 12/08 -21.96 -21.74 -21.66 -0.08 0.51 -0.40 0.19 0.21 2008 -37.01 -36.59 -36.36 -0.23 1.67 -0.84 -0.19 0.42 03/09 -11.01 -11.49 -11.49 -0.01 -0.60 0.45 -0.32 -0.48 06/09 15.93 15.31 15.40 -0.09 -0.16 -0.41 0.05 -0.62 09/09 15.60 14.72 14.82 -0.09 -0.33 -0.35 -0.10 -0.88 12/09 6.04 6.26 6.35 -0.09 0.14 0.21 -0.03 0.22 2009 26.45 24.41 24.73 -0.32 -1.22 0.04 -0.55 -2.04 03/10 5.38 5.46 5.55 -0.09 -0.27 0.39 0.05 0.08 06/10 -11.43 -10.85 -10.90 0.05 0.02 0.20 0.31 0.59 09/10 11.30 11.35 11.44 -0.10 0.18 0.82 -0.86 0.05 12/10 10.76 9.92 10.02 -0.09 -0.85 0.42 -0.30 -0.83 2010 15.05 15.08 15.31 -0.23 -0.98 1.98 -0.75 0.03

Index* : Standard & Poor's 500 6 Tacoma Employees' Retirement System VV Equity Return Analysis INTECH Quarter Ended 12/31/10

Net Management Effect Total Equity Sector Stock Quarter Index* Return Return Timing Weighting Selection Trading Total

From Inception -1.06 -1.28 -1.02 -0.26 -0.08 0.41 -0.29 -0.22 Avg Up Markets 9.17 8.58 8.66 -0.08 -0.59 Avg Down Markets -9.75 -9.26 -9.21 -0.05 0.49 Index* : Standard & Poor's 500 7 Tacoma Employees' Retirement System VV Equity Sector Attribution Analysis INTECH Quarter Ended 12/31/10

Portfolio Standard & Poor's 500 Selection Sector Mkt Val % Return Mkt Val % Return Stock Sector Total Consumer Staples 13.58 9.04 11.28 6.12 0.40 -0.11 0.29 Consumer Discretionary 11.39 13.87 10.42 12.68 0.14 0.02 0.15 Telecom Services 3.52 9.78 3.24 7.33 0.09 -0.01 0.08 Health Care 14.06 5.43 11.64 3.67 0.25 -0.17 0.08 Utilities 5.40 3.43 3.65 1.09 0.13 -0.17 -0.04 Financials 13.50 11.20 15.65 11.57 -0.05 -0.02 -0.07 Information Technology 16.71 9.43 18.84 10.27 -0.14 0.01 -0.13 Industrials 11.53 10.21 10.79 11.75 -0.18 0.01 -0.17 Materials 2.18 14.93 3.54 19.11 -0.09 -0.11 -0.20 Energy 8.12 20.06 10.94 21.46 -0.11 -0.30 -0.42 Quarter Total 100.00 10.32 100.00 10.76 0.42 -0.85 -0.44

Stock Selection Return Attribution = [ Portfolio Market Value Sector Percent ] x [ Portfolio Sector Return - Index Sector Return]

Sector Selection Return Attribution = [ Portfolio Sector Percent - Index Sector Percent ] x [ Index Sector Return - Index Total Return ]

Trading Effect -0.30% = [ Actual Return 10.02% ] - [ Buy Hold Return 10.32% ]

8 Tacoma Employees' Retirement System VV Equity Summary Statistics INTECH Quarter Ended 12/31/10

10 Largest Holdings 10 Best Performers Name %Port $(000) Name %Port %Return Exxon Mobil Corp 3.5 30,441 Abercrombie & Fitch 0.0 47.10 At&T Inc 2.0 17,739 Ford Mtr Co Del 0.6 37.17 Apple Computer Inc 1.9 16,494 Whole Foods Mkt Inc 0.2 36.32 Chevron Corp 1.7 14,732 Sandisk Corp 0.5 36.04 Intl Business McHn 1.7 14,616 Schlumberger Ltd 0.4 35.90 Procter & Gamble Co 1.7 14,472 Baker Hughes Inc 0.0 34.64 General Elec Co 1.7 14,397 Anadarko Pete Corp 0.1 33.67 Microsoft Corp 1.6 14,137 Pioneer Nat Res Co 0.5 33.51 Johnson & Johnson 1.6 13,670 United States Stl Co 0.0 33.40 Cisco Sys Inc 1.2 10,771 Valero Energy Corp N 0.1 32.38

Portfolio Characteristic Distribution (%) 10 Worst Performers Quartile Mkt. Cap P/E Yield Name %Port %Return 1st 50.5 18.3 35.9 Lexmark Intl Inc. 0.2 -21.96 2nd 19.9 24.6 25.8 Titanium Metals Corp 0.1 -13.93 3rd 19.3 30.2 19.0 Intuitive Surgical I 0.2 -9.16 4th 10.3 26.9 19.3 Tellabs Inc 0.1 -8.72 Standard & Poor's 500 Sprint Nextel Corp 0.1 -8.64 Cisco Sys Inc 1.2 -7.63 25th Percentile 22,332,600 23.8 2.5 Abbott Labs 0.4 -7.53 50th Percentile 11,166,736 17.3 1.3 Akamai Technologies 0.4 -6.24 75th Percentile 6,475,627 13.0 0.1 Integrys Energy Grou 0.2 -5.53 Archer Daniels Midla 0.1 -5.29

9 Tacoma Employees' Retirement System VV Growth of One Dollar Research Affiliates Quarter Ended 12/31/10

1.10

1.00

0.90

0.80 Value

0.70

0.60

0.50 12/07 12/08 12/09 12/10

Return $ Legend 3 Years Inception 3/31/07 Value Total -1.85 -0.87 0.97 Standard & Poor's 500 -2.87 -1.06 0.96

1 Tacoma Employees' Retirement System VV Equity Fundamental Drift Style Map 3/31/07 - 12/31/10 Growth/Value vs Size over Time 150 Large Cap Large Cap Research Affiliates Standard & Poor's 500 Value Growth 125 5000 Date Growth-Value Size Growth-Value Size Wilshire

Large 3/31/07 -46.62 94.28 -9.31 106.38 100 6/30/07 -46.09 95.42 -9.80 102.71 9/30/07 -46.26 94.35 -8.89 106.36 75 Wilshire 12/31/07 -41.86 83.47 -4.08 105.19 5000 3/31/08 -38.90 75.81 -5.69 106.09 105.99 50 6/30/08 -36.75 74.73 -0.02 9/30/08 -52.01 71.61 -5.84 105.25 12/31/08 -50.01 74.30 -7.35 104.39 25 3/31/09 -56.29 78.59 -13.89 105.26 6/30/09 -48.66 74.16 -13.40 103.29 0 9/30/09 -50.29 80.34 -15.43 101.54 SIZE 12/31/09 -45.68 77.11 -5.26 104.20 -25 3/31/10 -46.84 69.79 -4.78 104.95 6/30/10 -47.33 69.77 -7.01 104.82 -50 9/30/10 -41.96 71.20 -3.24 105.06 12/31/10 -40.11 70.52 -2.40 105.08 -75

-100

-125

Small Small Cap Small Cap Value Growth -150 -150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150 Value VALUE/GROWTH Growth

2 Tacoma Employees' Retirement System VV Equity Structural Characteristics Research Affiliates Quarter Ended 12/31/10

# % % % Sectors Turn- Quarter $(000) Stocks Equity Cash Other ENR MAT IND CDI CST HTH FIN INF TEL UTL Over 03/31/07 73,200 1,074 100 0 0 11 4 10 11 11 11 23 9 3 6 NA 06/30/07 77,507 1,078 100 0 0 11 4 10 11 11 10 24 9 3 6 NA 09/30/07 77,644 948 100 0 0 12 4 11 10 11 10 22 10 4 6 NA 12/31/07 74,932 938 100 0 0 11 5 11 11 12 10 20 10 3 7 NA 03/31/08 67,959 997 100 0 0 11 5 12 13 11 8 21 11 2 6 NA 06/30/08 64,880 993 100 0 0 13 5 12 12 12 8 18 12 2 7 NA 09/30/08 60,553 1,003 100 0 0 10 4 10 14 10 10 23 10 4 5 NA 12/31/08 46,851 994 100 0 0 12 3 11 13 11 11 19 10 5 6 NA 03/31/09 18,368 981 100 0 0 13 3 10 13 11 11 18 10 5 7 NA 06/30/09 21,458 1,011 100 0 0 14 4 10 12 11 10 19 10 4 6 NA 09/30/09 26,026 1,000 100 0 0 11 4 10 12 8 9 29 10 3 4 NA 12/31/09 27,070 990 100 0 0 11 4 11 13 9 9 23 11 3 5 NA 03/31/10 29,253 910 100 0 0 11 3 12 13 9 9 23 11 3 6 NA 06/30/10 31,243 904 100 0 0 11 3 12 12 9 9 23 11 3 6 NA 09/30/10 34,723 904 100 0 0 11 3 12 12 10 9 22 11 4 6 NA 12/31/10 38,748 909 100 0 0 12 3 13 13 9 8 20 11 4 6 NA

Growth Average $ Valuation Risk Quarter 5 Yrs EPS 5 Yrs Div Market Cap(Mil) P/E P/B YLD ROE Beta Debt/Eqt R Square 03/31/07 12.0 5.6 94,737 16.5 2.5 2.2 19.3 0.96 0.47 0.96 06/30/07 13.7 5.8 95,681 17.0 2.5 2.1 19.6 0.96 0.48 0.97 09/30/07 13.9 5.9 101,136 16.3 2.5 2.2 20.2 0.93 0.47 0.96 12/31/07 14.3 5.6 89,320 16.6 2.3 2.3 20.5 0.99 0.46 0.96 03/31/08 13.9 6.3 71,800 15.6 1.9 2.4 18.9 0.99 0.48 0.96 06/30/08 14.1 6.3 70,503 15.7 1.8 2.5 19.5 1.00 0.45 0.96 09/30/08 12.8 6.3 66,190 14.6 1.5 2.8 19.4 1.01 0.46 0.90 12/31/08 13.7 6.3 63,760 11.3 1.2 3.3 20.1 0.99 0.44 0.94 03/31/09 9.0 5.9 57,768 14.6 1.2 3.1 20.2 0.99 0.47 0.96 06/30/09 5.4 5.6 54,448 19.6 1.2 2.6 16.5 1.09 0.52 0.96 09/30/09 0.7 4.7 63,294 68.3 1.0 1.9 12.8 1.26 0.61 0.91 12/31/09 2.3 5.0 63,497 83.1 1.5 2.0 14.3 1.18 0.56 0.93 03/31/10 -0.6 3.7 66,414 26.5 1.7 2.0 13.1 1.08 0.56 0.94 06/30/10 -0.5 3.1 59,040 17.4 1.4 2.3 13.2 1.07 0.49 0.95 09/30/10 -0.2 3.2 64,717 18.0 1.6 2.1 13.5 1.07 0.48 0.95 12/31/10 -0.2 3.9 71,300 17.0 1.8 2.0 13.4 1.06 0.49 0.95

Standard & Poor's 500 4.7 4.0 88,731 17.5 2.2 1.9 19.2 1.00 0.72 0.98

P/B methodology changed 2Q03. See Glossary. 4 Tacoma Employees' Retirement System VV Equity Fund Investment Characteristics - Historical Comparison Research Affiliates vs. Standard & Poor's 500 93.0 3.0 P/E Ratio P/B Ratio

62.0 2.0

31.0 1.0

0.0 0.0 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Port 14.62 19.60 68.35 83.07 26.54 17.44 17.96 17.02 Port 1.16 1.21 1.05 1.52 1.69 1.41 1.56 1.78 Index 13.17 16.70 25.54 30.79 21.90 16.62 17.12 17.48 Index 1.61 1.75 1.91 1.96 2.14 1.85 2.03 2.17

6.0 99.0 Dividend Yield Market Cap (Bil)

4.0 66.0

2.0 33.0

0.0 0.0 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Port 3.12 2.59 1.92 1.97 1.98 2.30 2.12 1.98 Port 57.77 54.45 63.29 63.50 66.41 59.04 64.72 71.30 Index 2.81 2.35 2.04 1.94 1.87 2.19 2.03 1.87 Index 67.35 71.38 77.24 81.93 84.68 75.23 80.96 88.73 Portfolio Index 5 Tacoma Employees' Retirement System VV Equity Return Analysis Research Affiliates Quarter Ended 12/31/10

Net Management Effect Total Equity Sector Stock Quarter Index* Return Return Timing Weighting Selection Trading Total 06/07 6.28 5.88 5.88 0.01 -0.38 0.30 -0.32 -0.40 09/07 2.05 0.18 0.23 -0.05 -0.52 -1.17 -0.13 -1.88 12/07 -3.33 -3.49 -3.47 -0.02 -0.18 -0.57 0.60 -0.16

03/08 -9.46 -9.31 -9.29 -0.01 0.52 -0.16 -0.20 0.15 06/08 -2.72 -4.53 -4.52 -0.01 -1.35 -0.45 0.00 -1.81 09/08 -8.37 -6.67 -6.65 -0.01 0.76 2.21 -1.26 1.70 12/08 -21.96 -22.63 -22.61 -0.01 -1.04 0.02 0.37 -0.67 2008 -37.01 -37.48 -37.43 -0.04 -0.87 1.12 -0.68 -0.47 03/09 -11.01 -13.48 -13.63 0.15 -1.89 -0.83 0.10 -2.47 06/09 15.93 16.82 16.84 -0.02 1.35 0.10 -0.53 0.90 09/09 15.60 21.29 21.30 -0.02 0.53 2.61 2.56 5.69 12/09 6.04 4.01 4.03 -0.02 -1.66 -0.67 0.31 -2.02 2009 26.45 27.51 27.34 0.17 -2.71 0.96 2.64 1.05 03/10 5.38 8.07 8.14 -0.07 1.07 1.97 -0.29 2.68 06/10 -11.43 -11.52 -11.25 -0.27 0.10 0.03 0.06 -0.08 09/10 11.30 11.14 11.16 -0.02 -0.23 0.10 -0.01 -0.16 12/10 10.76 11.59 11.61 -0.02 0.11 0.85 -0.11 0.83 2010 15.05 18.59 19.07 -0.48 1.18 3.20 -0.36 3.54

Index* : Standard & Poor's 500 6 Tacoma Employees' Retirement System VV Equity Return Analysis Research Affiliates Quarter Ended 12/31/10

Net Management Effect Total Equity Sector Stock Quarter Index* Return Return Timing Weighting Selection Trading Total

From Inception -1.06 -0.87 -0.76 -0.11 -0.95 1.00 0.24 0.19 Avg Up Markets 9.17 9.87 9.90 -0.02 0.71 Avg Down Markets -9.75 -10.23 -10.20 -0.03 -0.48 Index* : Standard & Poor's 500 7 Tacoma Employees' Retirement System VV Equity Sector Attribution Analysis Research Affiliates Quarter Ended 12/31/10

Portfolio Standard & Poor's 500 Selection Sector Mkt Val % Return Mkt Val % Return Stock Sector Total Industrials 12.41 15.68 10.79 11.75 0.49 0.02 0.50 Health Care 8.84 4.52 11.64 3.67 0.08 0.20 0.27 Consumer Discretionary 12.30 14.60 10.42 12.68 0.24 0.04 0.27 Information Technology 10.99 11.16 18.84 10.27 0.10 0.04 0.14 Financials 21.63 11.61 15.65 11.57 0.01 0.05 0.06 Energy 11.06 21.50 10.94 21.46 0.00 0.01 0.02 Consumer Staples 9.66 5.19 11.28 6.12 -0.09 0.08 -0.02 Telecom Services 3.56 6.99 3.24 7.33 -0.01 -0.01 -0.02 Materials 3.08 17.75 3.54 19.11 -0.04 -0.04 -0.08 Utilities 6.45 2.43 3.65 1.09 0.09 -0.27 -0.18 Quarter Total 100.00 11.71 100.00 10.76 0.85 0.11 0.96

Stock Selection Return Attribution = [ Portfolio Market Value Sector Percent ] x [ Portfolio Sector Return - Index Sector Return]

Sector Selection Return Attribution = [ Portfolio Sector Percent - Index Sector Percent ] x [ Index Sector Return - Index Total Return ]

Trading Effect -0.11% = [ Actual Return 11.61% ] - [ Buy Hold Return 11.71% ]

8 Tacoma Employees' Retirement System VV Equity Summary Statistics Research Affiliates Quarter Ended 12/31/10

10 Largest Holdings 10 Best Performers Name %Port $(000) Name %Port %Return Exxon Mobil Corp 3.9 9,734 Western Refng Inc 0.1 101.91 At&T Inc 1.9 4,715 Exide Technologies 0.1 96.45 Chevron Corp 1.8 4,552 Cvr Energy Inc 0.0 84.00 Conocophillips 1.8 4,510 W & T Offshore Inc 0.1 75.96 General Elec Co 1.4 3,567 Whitney Hldg Corp 0.0 73.36 Citigroup Inc 1.4 3,543 Massey Energy Corp 0.0 73.16 Wal Mart Stores Inc 1.3 3,253 Sfn Group Inc 0.0 62.40 Microsoft Corp 1.2 3,103 Dillards Inc 0.1 60.66 Berkshire Hathaway I 1.2 3,061 Kelly Svcs Inc 0.1 60.27 Apple Computer Inc 1.1 2,780 Sunrise Senior Livin 0.0 58.89

Portfolio Characteristic Distribution (%) 10 Worst Performers Quartile Mkt. Cap P/E Yield Name %Port %Return 1st 55.2 13.9 33.7 Great Atl & Pac Tea 0.0 -94.67 2nd 13.9 22.0 25.9 Wilmington Trust Cor 0.0 -51.67 3rd 7.2 29.3 19.8 Media Gen Inc 0.0 -35.49 4th 23.7 34.8 20.6 Sws Group Inc 0.0 -29.40 Standard & Poor's 500 Apollo Group Inc 0.0 -23.10 Lexmark Intl Inc. 0.0 -21.96 25th Percentile 22,332,600 23.8 2.5 Pantry Inc 0.1 -17.63 50th Percentile 11,166,736 17.3 1.3 Insight Enterprises 0.0 -15.86 75th Percentile 6,475,627 13.0 0.1 Supervalu Inc 0.1 -15.65 Best Buy Inc 0.1 -15.34

9 Tacoma Employees' Retirement System VV Fund Return Table Quarter Ended 12/31/10

Since Inception Inception Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years 12/31/00 Date Return Northern Trust EAFE Index 6.68 24.12 6.90 7.94 3/31/09 33.49 MSCI EAFE Index (N) 6.61 24.18 6.83 7.75 3/31/09 33.12

Northern Trust EAFE Index (Hedged) 5.65 13.25 1.00 5.13 3/31/09 22.78 MSCI EAFE Hedged (N) 5.36 12.58 -0.64 2.84 3/31/09 21.04

Northern Trust Emerging Markets 7.25 26.41 15.38 18.33 3/31/09 52.49 MSCI EM Index (N) 7.34 26.69 16.08 18.87 3/31/09 52.88

TT International 8.19 27.47 8.63 12.43 -8.10 2.93 2.23 3/31/99 4.24 MSCI EAFE Index (N) 6.61 24.18 6.83 7.75 -7.01 2.46 3.50 3/31/99 3.61 Performance Objective 7.26 25.48 8.78 10.35 -4.41 5.06 6.10 3/31/99 6.21

Int'l Equity Composite 7.01 21.49 6.96 10.73 -8.66 2.38 2.96 3/31/88 4.75 Policy Index 6.32 20.02 5.67 8.02 -7.87 2.87 3.71 3/31/88 4.94 MSCI ACWI X US (N) 7.20 24.98 9.42 11.15 -5.03 4.82 5.54

Int'l Equity Composite (Unhedged) 7.40 25.91 9.30 11.80 -7.13 3.40 3.47 3/31/88 4.98

Indices Since MSCI EAFE Index (N) 6.61 24.18 6.83 7.75 -7.01 2.46 3.50 3/31/88 4.85 MSCI EAFE Hedged (N) 5.36 12.58 -0.64 2.84 -9.96 -2.63 -1.68 3/31/88 2.58 MSCI EM Index (N) 7.34 26.69 16.08 18.87 -0.32 12.78 15.89 3/31/88 MSCI ACWI X US (N) 7.20 24.98 9.42 11.15 -5.03 4.82 5.54 3/31/88

1 Tacoma Employees' Retirement System VV Performance Comparison Total Returns of International Equity Portfolios Periods Ended 12/31/10 55% 50% 45% z 40% 35% 30% T 25% z h θ θ x m x h 20% * T z θ * m 15% 5th z θ z β

Rate of Return # T z 10% 25th *xh # Med T xh T θ 75th θz *xhmθ θ * m m 5% 95th β # β x x # h T *hm 0% β * m T # z # # -5% x hm * T -10% # -15% 1 Quarter 2 Quarters 3 Quarters 1 Year 2 Years 3 Years 5 Years 10 Years

θ NT EAFE Index 6.68 (78) 24.12 (63) 6.90 (86) 7.94 (87) β NT EAFE Index (Hedged) 5.65 (88) 13.25 (96) 1.00 (97) 5.13 (95) θ NT Emerging Markets 7.25 (69) 26.41 (40) 15.38 (27) 18.33 (33) T TT International 8.19 (50) 27.47 (31) 8.63 (74) 12.43 (65) 22.02 (66) -8.10 (89) 2.93 (79) 2.23 (95) * Int'l Equity Composite 7.01 (73) 21.49 (81) 6.96 (86) 10.73 (75) 19.48 (79) -8.66 (91) 2.38 (85) 2.96 (92) h Int'l Equity Composite (Unhedged) 7.40 (66) 25.91 (45) 9.30 (67) 11.80 (69) 22.49 (63) -7.13 (86) 3.40 (75) 3.47 (88) m MSCI EAFE Index (N) 6.61 (79) 24.18 (62) 6.83 (86) 7.75 (88) 19.16 (81) -7.01 (85) 2.46 (85) 3.50 (88) # MSCI EAFE Hedged (N) 5.36 (90) 12.58 (97) -0.64 (98) 2.84 (97) 11.90 (96) -9.96 (94) -2.63 (97) -1.68 (99) z MSCI EM Index (N) 7.34 (67) 26.69 (38) 16.08 (24) 18.87 (31) 45.67 (10) -0.32 (31) 12.78 (17) 15.89 (16) x MSCI ACWI X US (N) 7.20 (70) 24.98 (54) 9.42 (66) 11.15 (73) 25.39 (48) -5.03 (70) 4.82 (60) 5.54 (63)

Median 8.21 25.41 11.46 15.18 25.11 -2.46 5.90 7.01 Number of Funds 922 922 920 912 886 833 702 423 2 Tacoma Employees' Retirement System VV Intl Equity Fund Structural Characteristics Int'l Equity Composite Quarter Ended 12/31/10

%Intl Sectors Turn- Manager US$(000) # Equity %Cash %Other ENR MAT IND CDI CST HTH FIN INF TEL UTL Over Northern Trust EAFE Index 95,889 969 100 0 0 8 12 13 10 10 8 24 5 5 5 NA Northern Trust Emerging Mrkts 59,450 836 100 0 0 16 15 7 7 6 1 25 13 7 3 NA TT International 99,217 113 98 2 0 6 15 21 19 6 7 21 5 0 0 41.0 Int'l Equity Composite 253,009 1,817 100 0 0 9 13 15 13 8 6 23 7 4 3 NA

MSCI EAFE Index (N) NA 969 100 0 0 8 12 13 10 10 8 24 5 5 5 NA MSCI EM Index (N) NA 802 100 0 0 14 15 7 7 7 1 25 13 7 3 NA MSCI ACWI X US (N) NA 1,871 100 0 0 10 14 11 9 9 6 25 7 6 4 NA

3 Tacoma Employees' Retirement System VV Intl Equity Fund Investment Characteristics Int'l Equity Composite Quarter Ended 12/31/10

Growth Average $ Valuation Risk Manager 5 Yrs EPS 5 Yrs Div Market Cap($Mil) P/E P/B YLD ROE Beta DBT/EQT Northern Trust EAFE Index -2.0 5.0 50,299 19.5 1.6 3.2 13.3 1.00 0.98 Northern Trust Emerging Markets 9.7 9.0 35,701 18.1 2.2 2.2 17.0 1.00 0.54 TT International -7.0 2.8 41,838 30.0 1.3 2.1 5.9 1.20 0.88 Int'l Equity Composite -1.3 5.1 43,612 22.1 1.6 2.6 11.3 1.08 0.84

MSCI EAFE Index (N) -2.1 5.3 50,245 19.4 1.6 2.9 13.0 1.00 0.98 MSCI EM Index (N) 10.1 10.4 35,436 16.3 2.7 2.1 17.0 1.00 0.55 MSCI ACWI X US (N) 1.3 6.7 45,196 18.5 1.8 2.7 13.6 1.00 0.84

4 Tacoma Employees' Retirement System VV Fund Country Allocation Int'l Equity Composite Quarter Ended 12/31/10 Country Northern Trust EAFE Index NT Emerging Markets TT International Int'l Equity Composite MSCI EAFE Index (N) MSCI Emerging Mkts (N) MSCI ACWI X US (N) Austria 0.3 0.0 0.0 0.1 0.3 0.0 0.2 Belgium 0.9 0.0 0.0 0.3 0.9 0.0 0.6 Channel Islands 0.0 0.0 0.4 0.1 0.0 0.0 0.0 Cyprus +0 0.0 0.0 +0 0.0 0.0 0.0 Czech Republic 0.0 0.3 0.0 0.1 0.0 0.3 0.1 Denmark 1.0 0.0 1.0 0.8 1.0 0.0 0.7 Finland 1.1 0.0 0.0 0.4 1.1 0.0 0.8 France 9.3 0.0 6.2 5.9 9.5 0.0 6.5 Germany 8.2 0.0 15.5 9.0 8.2 0.0 5.6 Greece 0.2 0.0 0.0 0.1 0.3 0.0 0.2 Hungary 0.0 0.3 0.0 0.1 0.0 0.4 0.1 Ireland 0.2 0.0 0.0 0.1 0.2 0.0 0.2 Isle of Man 0.1 0.0 0.0 +0 0.1 0.0 0.1 Italy 2.5 0.1 0.0 1.0 2.6 0.0 1.8 Luxembourg 0.2 +0 0.0 0.1 0.0 0.0 0.0 Netherlands 2.7 0.0 1.9 1.8 2.5 0.0 1.7 Norway 0.8 0.0 0.0 0.3 0.8 0.0 0.6 Poland 0.0 1.5 0.0 0.4 0.0 1.6 0.4 Portugal 0.3 0.0 0.0 0.1 0.3 0.0 0.2 Scotland 0.1 0.0 0.0 +0 0.1 0.0 0.1

5 Tacoma Employees' Retirement System VV Fund Country Allocation Int'l Equity Composite Quarter Ended 12/31/10 Country Northern Trust EAFE Index NT Emerging Markets TT International Int'l Equity Composite MSCI EAFE Index (N) MSCI Emerging Mkts (N) MSCI ACWI X US (N) Spain 3.2 0.0 0.0 1.2 3.3 0.0 2.2 Sweden 3.2 0.0 0.0 1.2 3.2 0.0 2.2 Switzerland 8.0 0.0 1.5 3.6 8.0 0.0 5.5 Turkey 0.0 1.5 0.0 0.3 0.0 1.5 0.4 United Kingdom 21.2 0.0 32.7 20.6 21.3 0.0 14.5 Total Europe 63.5 3.8 59.2 47.7 63.8 3.8 44.3

Bermuda 0.1 0.3 0.1 0.2 0.0 0.0 0.0 Brazil 0.0 15.5 0.0 3.7 0.0 15.8 3.8 Canada 0.0 0.0 0.0 0.0 0.0 0.0 8.0 Cayman Islands 0.1 1.4 0.0 0.4 0.1 0.0 0.4 Chile 0.0 1.7 0.0 0.4 0.0 1.7 0.4 Colombia 0.0 0.8 0.0 0.2 0.0 0.8 0.2 Mexico 0.0 4.4 0.0 1.0 0.0 4.5 1.1 Peru 0.0 0.7 0.0 0.2 0.0 0.7 0.2 United States 0.1 2.0 0.0 0.5 0.0 0.0 0.0 Total Americas 0.3 26.8 0.1 6.5 0.1 23.6 14.1

Australia 8.8 0.0 6.8 5.9 8.8 0.0 6.0 Hong Kong 2.7 2.3 1.6 2.2 2.9 0.0 1.9

6 Tacoma Employees' Retirement System VV Fund Country Allocation Int'l Equity Composite Quarter Ended 12/31/10 Country Northern Trust EAFE Index NT Emerging Markets TT International Int'l Equity Composite MSCI EAFE Index (N) MSCI Emerging Mkts (N) MSCI ACWI X US (N) India 0.0 7.9 0.0 1.9 0.0 8.0 1.9 Indonesia 0.0 2.3 0.0 0.5 0.0 2.3 0.6 Japan 22.1 0.0 29.6 19.8 22.1 0.0 15.0 Malaysia 0.0 2.8 0.0 0.7 0.0 2.8 0.7 New Zealand 0.1 0.0 0.0 +0 0.1 0.0 0.1 China +0 13.0 0.1 3.1 0.0 17.3 4.2 Philippines 0.0 0.5 0.0 0.1 0.0 0.5 0.1 Singapore 1.6 0.0 1.3 1.1 1.7 0.0 1.2 South Korea 0.0 13.6 0.0 3.2 0.0 13.8 3.3 Taiwan 0.0 11.2 0.2 2.7 0.0 11.5 2.8 Thailand 0.0 1.6 0.0 0.4 0.0 1.7 0.4 Total Pacific Basin 35.4 55.1 39.6 41.6 35.6 57.8 38.1

Other Countries 0.8 14.3 1.1 4.1 0.8 14.9 4.1

7 Tacoma Employees' Retirement System VV Growth of One Dollar Northern Trust EAFE Index Quarter Ended 12/31/10

1.70

1.60

1.50

1.40

1.30 Value 1.20

1.10

1.00

0.90 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10

Return $ Legend 1 Year & 3 Quarters Inception 3/31/09 Value Total 33.49 33.49 1.66 MSCI EAFE Index (N) 33.12 33.12 1.65

1 Tacoma Employees' Retirement System VV Growth of One Dollar Northern Trust EAFE Index (Hedged) Quarter Ended 12/31/10

1.50

1.40

1.30

1.20 Value

1.10

1.00

0.90 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10

Return $ Legend 1 Year & 3 Quarters Inception 3/31/09 Value Total 22.78 22.78 1.43 MSCI EAFE Hedged (N) 21.04 21.04 1.40

1 Tacoma Employees' Retirement System VV Growth of One Dollar Northern Trust Emerging Markets Quarter Ended 12/31/10

2.20 2.10 2.00 1.90 1.80 1.70 1.60 1.50 Value 1.40 1.30 1.20 1.10 1.00 0.90 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10

Return $ Legend 1 Year & 3 Quarters Inception 3/31/09 Value Total 52.49 52.49 2.09 MSCI EM Index (N) 52.88 52.88 2.10

1 Tacoma Employees' Retirement System VV Growth of One Dollar TT International Quarter Ended 12/31/10

2.60

2.40

2.20

2.00

1.80

1.60 Value 1.40

1.20

1.00

0.80

0.60 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10

Return $ Legend 3 Years Inception 3/31/99 Value Total -8.10 4.24 1.63 Performance Objective -4.41 6.21 2.05

1 Tacoma Employees' Retirement System VV Intl Equity Structural Characteristics TT International Quarter Ended 12/31/10

# %Intl Sectors Turn- Quarter $(000) Stocks Equity %Cash %Other ENR MAT CAP CON SRV FIN MIN GMN MIS Over 03/31/99 39,761 75 100 0 0 9.1 2.9 7.7 29.4 16.4 32.7 0.0 0.0 1.7 NA 06/30/99 42,717 79 100 0 0 3.2 5.0 20.2 22.1 31.9 14.9 2.7 0.0 0.0 NA 09/30/99 43,856 74 100 0 0 5.6 4.4 24.5 21.1 29.5 14.0 0.9 0.0 0.0 NA 12/31/99 64,392 93 100 0 0 1.6 3.4 25.3 10.7 39.9 14.7 1.4 0.0 3.1 NA 03/31/00 67,561 90 100 0 0 10.1 6.5 23.4 18.8 29.4 7.5 3.0 0.0 1.4 NA 06/30/00 63,715 82 100 0 0 11.9 4.4 17.5 27.9 16.1 19.2 2.3 0.0 0.6 NA 09/30/00 60,440 73 100 0 0 6.0 0.9 17.3 25.9 18.9 26.9 2.9 0.0 1.2 NA 12/31/00 57,427 77 100 0 0 4.1 1.1 12.0 27.4 20.8 29.6 3.3 0.0 1.6 NA 03/31/01 47,521 84 100 0 0 2.6 1.9 12.1 23.4 30.3 27.5 2.2 0.0 0.0 NA 06/30/01 46,689 83 100 0 0 6.7 3.2 7.3 23.5 27.1 29.9 2.0 0.0 0.3 NA 09/30/01 39,580 64 100 0 0 16.7 4.1 3.6 24.7 27.8 19.1 1.3 0.0 2.7 NA 12/31/01 40,825 65 100 0 0 9.3 6.1 12.1 26.1 24.4 17.4 1.2 0.0 3.5 NA 03/31/02 40,497 82 100 0 0 13.6 4.5 14.5 22.2 24.6 13.9 1.9 0.0 4.9 NA 06/30/02 68,145 73 100 0 0 15.5 6.4 4.5 20.3 31.2 20.5 1.5 0.0 0.0 NA 09/30/02 56,762 61 100 0 0 22.8 4.0 7.1 22.1 20.3 22.1 1.7 0.0 0.0 NA 12/31/02 50,028 63 100 0 0 15.2 3.9 11.9 25.8 21.7 20.6 1.0 0.0 0.0 NA

MSCI EAFE Index (N) 11,061,099 969 100 0 0 12.0 11.1 17.2 19.4 17.0 22.7 0.6 0.0 0.1 NA

2 Tacoma Employees' Retirement System VV International Equity Structural Characteristics TT International Quarter Ended 12/31/10

#Intl %Intl % % Sectors Turn- Quarter $(000) Stocks Equity Cash Other ENR MAT IND CDI CST HTH FIN INF TEL UTL Over 12/31/02 50,028 63 100 0 0 12 4 5 10 8 10 26 12 10 4 NA 03/31/03 45,926 54 100 0 0 6 1 6 9 8 9 33 10 14 4 NA 06/30/03 55,562 61 100 0 0 6 3 7 10 4 6 38 13 12 1 NA 09/30/03 58,964 75 100 0 0 0 9 9 9 5 3 39 12 15 0 NA 12/31/03 63,280 75 100 0 0 0 10 9 14 3 3 43 6 12 0 NA 03/31/04 66,789 81 100 0 0 0 9 12 17 4 6 43 6 5 0 NA 06/30/04 64,702 88 100 0 0 1 6 12 16 5 4 47 3 5 0 NA 09/30/04 62,212 82 100 0 0 4 7 16 15 4 2 43 3 5 0 NA 12/31/04 71,508 82 95 5 0 4 8 13 5 2 3 52 6 6 2 38.0 03/31/05 70,032 83 95 5 0 3 11 17 11 3 2 33 9 5 6 48.3 06/30/05 70,773 82 95 5 0 10 13 16 13 3 0 22 8 9 5 41.1 09/30/05 80,668 89 98 2 0 7 11 20 10 4 4 28 6 7 3 11.7 12/31/05 87,106 88 98 2 0 8 13 20 8 5 9 30 3 2 4 36.0 03/31/06 86,742 93 99 1 0 9 12 18 9 2 6 31 5 2 5 34.9 06/30/06 81,902 88 93 7 0 9 11 15 8 5 9 30 6 1 5 37.3 09/30/06 77,738 88 99 1 0 7 13 15 10 7 7 28 6 1 6 36.5 12/31/06 87,914 94 98 2 0 7 10 19 14 6 7 23 7 0 7 34.5 03/31/07 90,557 106 98 2 0 5 15 23 11 5 5 24 9 0 4 43.6 06/30/07 91,300 111 98 2 0 7 14 23 14 6 4 18 9 0 5 34.7 09/30/07 94,121 109 98 2 0 5 15 19 16 8 6 17 10 1 4 32.3 12/31/07 93,626 121 97 3 0 6 16 18 15 10 5 13 8 2 6 28.2 03/31/08 85,483 116 97 3 0 7 16 17 13 10 6 13 7 3 8 29.6 MSCI EAFE Index (N) 11,061,099 969 100 0 0 8 12 13 10 10 8 24 5 5 5 NA ENR - Energy CDI - Consumer Discretionary FIN - Financials MAT- Materials CST - Consumer Staples INF - Information Technology IND - Industrials HTH- Health Care TEL - Telecommunication Services UTL - Utilities *Wilshire began using GICS sectors starting 1q03. 3 Tacoma Employees' Retirement System VV International Equity Structural Characteristics TT International Quarter Ended 12/31/10

#Intl %Intl % % Sectors Turn- Quarter $(000) Stocks Equity Cash Other ENR MAT IND CDI CST HTH FIN INF TEL UTL Over 06/30/08 84,350 117 97 3 0 8 17 11 12 11 9 18 4 3 8 49.2 09/30/08 63,814 116 94 6 0 9 11 11 10 12 10 20 4 5 9 50.0 12/31/08 49,028 126 95 5 0 9 7 11 9 12 13 20 4 8 9 40.2 03/31/09 58,037 139 94 6 0 10 10 11 9 11 12 20 3 8 6 33.1 06/30/09 71,235 136 96 4 0 10 11 12 11 10 10 24 3 5 4 45.7 09/30/09 87,142 134 97 3 0 7 13 15 14 6 3 29 5 3 5 50.5 12/31/09 77,104 122 98 2 0 6 15 13 16 8 7 22 8 3 2 50.0 03/31/10 79,825 123 96 4 0 8 14 15 14 6 6 24 10 3 0 43.2 06/30/10 77,793 116 94 6 0 10 14 13 15 11 7 20 8 3 0 42.3 09/30/10 91,680 118 97 3 0 8 13 16 15 9 9 21 6 4 0 43.2 12/31/10 99,217 113 98 2 0 6 15 21 19 6 7 21 5 0 0 41.0

MSCI EAFE Index (N) 11,061,099 969 100 0 0 8 12 13 10 10 8 24 5 5 5 NA ENR - Energy CDI - Consumer Discretionary FIN - Financials MAT- Materials CST - Consumer Staples INF - Information Technology IND - Industrials HTH- Health Care TEL - Telecommunication Services UTL - Utilities *Wilshire began using GICS sectors starting 1q03. 4 Tacoma Employees' Retirement System VV Intl Equity Investment Characteristics TT International Quarter Ended 12/31/10

Growth Average Valuation Risk Quarter 5 Yrs EPS 5 Yrs Div Mkt Cap $(Mil) P/E P/B YLD ROE Beta Debt/Eqty 03/31/99 14.4 10.1 26,296 22.9 3.5 2.2 13.7 0.92 0.65 06/30/99 10.6 11.8 29,005 49.1 6.6 1.3 16.7 1.01 0.49 09/30/99 8.9 12.6 31,470 47.9 8.3 1.2 13.8 0.99 0.59 12/31/99 14.3 6.8 59,343 49.7 32.2 0.6 9.7 1.04 0.76 03/31/00 10.2 5.9 60,184 38.8 11.4 0.9 14.4 0.87 0.56 06/30/00 11.1 8.6 41,247 28.5 7.6 1.7 14.0 0.81 0.56 09/30/00 24.4 12.1 39,216 32.2 10.1 1.4 14.1 0.97 0.83 12/31/00 11.9 13.9 44,530 25.2 8.2 1.5 18.0 0.87 0.81 03/31/01 12.1 8.5 38,290 24.4 7.1 1.6 16.2 0.86 1.01 06/30/01 15.2 10.0 32,298 23.3 4.6 1.7 12.3 0.71 1.25 09/30/01 18.6 13.7 37,041 22.1 4.0 2.1 13.3 0.67 1.05 12/31/01 24.2 15.6 42,506 19.7 5.6 1.8 17.5 0.77 0.66 03/31/02 24.9 16.2 35,606 22.4 3.7 2.0 15.9 0.76 0.68 06/30/02 9.2 11.7 42,052 35.4 3.7 2.4 16.7 0.67 0.80 09/30/02 17.0 12.6 37,839 19.3 2.8 3.5 15.6 0.68 0.73 12/31/02 13.7 13.0 46,206 26.3 4.1 3.0 18.9 0.70 0.71 03/31/03 13.2 9.5 41,724 43.9 5.0 3.4 16.6 0.89 0.91 06/30/03 6.4 2.0 47,087 NM 1.9 2.6 7.1 1.04 0.97 09/30/03 -0.5 4.1 39,669 NM 1.5 2.1 2.2 0.95 0.92 12/31/03 3.2 4.8 42,089 NM 1.6 2.0 1.9 0.99 1.11 03/31/04 1.1 3.6 27,336 38.8 1.9 1.9 18.7 0.99 1.39 06/30/04 7.4 4.2 24,805 27.1 1.7 1.8 8.7 0.99 1.19 MSCI EAFE Index (N) -2.1 5.3 50,245 19.4 1.6 2.9 13.0 1.00 0.98

P/B methodology changed 2Q03. See glossary. 5 Tacoma Employees' Retirement System VV Intl Equity Investment Characteristics TT International Quarter Ended 12/31/10

Growth Average Valuation Risk Quarter 5 Yrs EPS 5 Yrs Div Mkt Cap $(Mil) P/E P/B YLD ROE Beta Debt/Eqty 09/30/04 6.8 3.1 30,946 21.3 1.8 1.9 12.1 0.91 1.17 12/31/04 5.8 1.3 38,801 22.2 2.0 1.9 11.4 0.97 1.20 03/31/05 2.7 1.7 28,097 17.1 2.0 2.2 11.6 1.03 1.23 06/30/05 10.2 9.5 37,537 16.4 2.0 2.2 16.2 0.97 1.15 09/30/05 11.8 7.0 43,481 19.5 2.4 1.8 15.2 0.94 1.02 12/31/05 8.2 4.5 40,453 23.6 2.9 1.7 18.7 0.95 1.20 03/31/06 10.5 5.9 41,983 19.6 3.0 1.9 19.9 1.08 1.17 06/30/06 12.9 14.2 46,147 15.8 2.6 2.1 23.8 0.93 0.87 09/30/06 12.0 13.6 44,281 15.1 2.6 2.2 22.8 0.94 0.85 12/31/06 11.6 14.8 47,296 16.7 2.7 2.1 21.9 0.98 1.05 03/31/07 16.7 13.4 39,490 15.5 2.7 2.2 16.6 0.98 0.98 06/30/07 32.4 14.7 45,846 17.2 2.6 2.0 16.9 0.96 0.95 09/30/07 27.9 12.5 57,031 16.6 2.7 2.1 20.1 0.80 0.84 12/31/07 25.5 13.0 62,622 16.1 2.8 2.2 19.4 1.10 0.78 03/31/08 22.8 14.3 56,158 13.2 2.3 2.8 20.4 1.08 0.78 06/30/08 23.2 14.5 58,562 12.2 2.0 3.3 21.5 1.07 0.94 09/30/08 23.2 16.7 44,690 10.4 1.5 4.0 23.0 1.08 1.07 12/31/08 25.6 17.9 45,020 9.7 1.2 4.7 20.7 1.04 0.90 03/31/09 22.8 15.9 39,050 10.4 1.1 4.2 18.2 1.03 0.92 06/30/09 9.6 11.9 41,476 15.7 1.2 3.8 11.9 1.07 1.03 09/30/09 5.2 9.9 42,970 29.9 1.2 2.9 6.0 1.17 1.21 12/31/09 5.8 10.4 43,226 21.6 1.2 2.4 8.4 1.17 0.95 MSCI EAFE Index (N) -2.1 5.3 50,245 19.4 1.6 2.9 13.0 1.00 0.98

P/B methodology changed 2Q03. See glossary. 6 Tacoma Employees' Retirement System VV Intl Equity Investment Characteristics TT International Quarter Ended 12/31/10

Growth Average Valuation Risk Quarter 5 Yrs EPS 5 Yrs Div Mkt Cap $(Mil) P/E P/B YLD ROE Beta Debt/Eqty 03/31/10 -3.2 9.0 40,801 66.6 1.3 2.3 4.6 1.21 1.16 06/30/10 -5.8 3.8 33,948 27.1 1.2 3.0 6.6 1.15 0.94 09/30/10 -3.3 3.8 41,414 27.1 1.3 2.7 8.5 1.14 0.95 12/31/10 -7.0 2.8 41,838 30.0 1.3 2.1 5.9 1.20 0.88

MSCI EAFE Index (N) -2.1 5.3 50,245 19.4 1.6 2.9 13.0 1.00 0.98

P/B methodology changed 2Q03. See glossary. 7 Tacoma Employees' Retirement System VV Country Allocations TT International Quarter Ended 12/31/10 Total Pacific Basin Other Countries Emerging Total Developed Total Emerging Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom Other Europe Developed Total Europe Developed Other Europe Emerging Total Europe Emerging Total Europe Canada United States Total Americas Developed Other Americas Emerging Total Americas Emerging Total Americas Australia Hong Kong Japan New Zealand Singapore Total Pacific Basin Developed India Indonesia Malaysia China South Korea Taiwan Thailand Total Pacific Basin Emerging 3/99 0.0 0.0 1.0 0.9 14.1 9.5 0.0 0.0 4.8 3.7 0.0 0.0 5.6 7.0 4.7 17.9 0.0 69.3 0.0 0.0 69.3 0.0 6.9 6.9 0.0 0.0 6.9 2.3 1.2 18.1 0.0 1.3 22.9 0.8 0.0 0.2 0.0 0.0 0.0 0.0 1.0 23.9 0.0 99.0 1.0 6/99 0.0 0.0 2.0 5.2 20.5 1.7 0.0 0.0 6.9 7.4 0.0 0.0 1.8 1.9 3.5 16.4 0.0 67.2 0.0 0.0 67.2 0.0 0.0 0.0 0.0 0.0 0.0 0.6 2.2 26.3 0.0 1.5 30.5 0.0 0.0 0.0 0.0 2.3 0.0 0.0 2.3 32.8 0.0 97.7 2.3 9/99 0.0 0.0 0.0 4.9 22.2 5.6 0.0 0.0 1.8 8.0 0.0 0.0 1.9 1.9 1.7 11.1 0.0 59.1 0.0 0.0 59.1 0.0 0.0 0.0 0.0 0.0 0.0 1.1 1.5 31.8 0.0 2.4 36.8 0.0 0.0 0.0 0.0 3.2 0.5 0.4 4.1 40.9 0.0 95.9 4.1 12/99 0.0 0.0 0.0 0.0 9.8 13.6 0.0 0.0 5.0 4.0 0.0 0.0 2.1 3.0 1.7 10.6 0.0 49.8 0.0 0.0 49.8 +0 0.0 +0 0.0 0.0 +0 0.9 4.6 37.1 0.0 1.9 44.5 0.0 0.0 0.0 0.0 4.8 0.8 0.0 5.7 50.2 0.0 94.3 5.7 3/00 0.0 0.0 0.0 0.0 4.6 11.8 0.0 0.0 2.2 5.2 0.0 0.0 4.8 2.7 3.5 21.9 0.0 56.7 0.0 0.0 56.7 0.4 0.0 0.4 0.0 0.0 0.4 1.3 3.7 35.2 0.0 0.0 40.2 0.0 0.0 0.0 0.0 2.7 0.0 0.0 2.7 42.9 0.0 97.3 2.7 6/00 0.0 1.6 0.6 2.4 8.6 10.0 0.0 0.9 7.0 6.9 0.0 0.0 7.4 3.3 6.6 28.3 0.0 83.4 0.0 0.0 83.4 0.5 0.0 0.5 0.0 0.0 0.5 0.0 2.0 12.8 0.0 0.0 14.8 0.0 0.0 0.0 0.0 1.2 0.0 0.0 1.2 16.0 0.0 98.8 1.2 9/00 0.0 1.5 3.7 0.0 13.8 11.2 0.0 0.6 7.8 10.5 0.0 0.0 6.1 3.1 8.3 22.9 0.0 89.6 0.0 0.0 89.6 1.2 0.0 1.2 0.0 0.0 1.2 0.0 0.5 8.4 0.0 0.0 8.9 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.2 9.1 0.0 99.8 0.2 12/00 0.0 1.9 2.8 1.1 15.9 11.3 0.0 1.3 9.2 11.1 0.0 0.0 3.2 0.0 7.2 20.1 0.0 85.1 0.0 0.0 85.1 0.5 0.0 0.5 0.0 0.0 0.5 0.0 5.6 8.2 0.0 0.6 14.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14.4 0.0 100.0 0.0 3/01 0.0 2.5 3.7 0.0 9.1 11.8 0.0 1.4 9.2 5.4 0.0 0.0 6.5 0.7 1.4 21.0 0.0 72.7 0.0 0.0 72.7 0.4 0.0 0.4 0.0 0.0 0.4 0.6 4.2 21.8 0.0 0.2 26.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 26.9 0.0 100.0 0.0 6/01 0.0 2.6 2.6 0.0 12.3 9.0 0.0 2.4 9.7 2.1 0.0 0.0 0.9 0.0 2.9 20.5 0.0 65.0 0.0 0.0 65.0 0.0 0.0 0.0 0.0 0.0 0.0 1.5 3.3 29.5 0.0 0.0 34.2 0.0 0.0 0.0 0.0 0.8 0.0 0.0 0.8 35.0 0.0 99.2 0.8 9/01 0.0 1.3 4.0 0.8 20.2 4.0 0.0 1.7 10.6 1.1 0.0 0.0 0.0 0.0 6.5 30.9 0.0 81.0 0.0 0.0 81.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 +0 18.1 0.0 0.0 18.7 0.0 0.0 0.0 0.4 0.0 0.0 0.0 0.4 19.0 0.0 99.6 0.4 12/01 0.0 1.2 4.0 2.2 17.6 9.2 0.0 0.6 5.4 4.2 0.0 0.0 1.0 0.0 9.3 27.9 0.0 82.6 0.0 0.0 82.6 0.0 0.0 0.0 0.0 0.0 0.0 0.4 1.6 11.7 0.0 0.0 13.8 0.0 0.0 0.0 0.0 3.2 0.4 0.0 3.6 17.4 0.0 96.4 3.6 3/02 0.0 1.2 3.2 2.6 9.8 5.8 0.0 0.0 6.6 4.1 0.0 0.0 0.0 0.0 7.8 34.1 0.0 75.1 0.0 0.0 75.1 0.0 0.0 0.0 0.0 0.0 0.0 2.1 0.4 13.5 0.0 0.8 16.9 0.0 0.0 0.0 0.0 6.1 1.9 0.0 8.0 24.9 0.0 92.0 8.0 6/02 0.0 1.2 +0 1.1 19.3 1.8 0.0 0.0 7.0 3.3 0.0 0.0 0.0 0.0 4.9 42.8 0.0 81.4 0.0 0.0 81.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 15.0 0.0 0.3 15.8 0.0 0.0 0.0 0.0 2.1 0.7 0.0 2.8 18.6 0.0 97.2 2.8 9/02 0.0 1.1 0.0 4.1 14.7 4.9 0.0 0.0 7.0 8.2 0.0 0.0 0.0 0.0 4.5 39.9 0.0 84.3 0.0 0.0 84.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 12.4 0.0 0.6 13.0 0.0 0.0 0.0 0.0 2.7 0.0 0.0 2.7 15.7 0.0 97.3 2.7 12/02 0.0 0.6 0.0 5.1 11.7 2.2 0.0 0.0 6.7 7.3 0.0 0.0 0.0 0.0 5.6 41.3 0.0 80.4 0.0 0.0 80.4 0.0 0.0 0.0 0.0 0.0 0.0 1.8 0.0 12.9 0.0 0.4 15.2 0.0 0.0 0.0 0.0 3.9 0.5 0.0 4.4 19.6 0.0 95.6 4.4 3/03 0.0 0.0 1.2 6.2 5.4 4.4 0.0 0.0 3.1 10.9 0.0 0.0 3.1 0.0 8.7 40.8 0.0 83.7 0.0 0.0 83.7 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.0 15.6 0.0 0.0 16.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 16.3 0.0 100.0 0.0 6/03 0.0 0.0 0.0 3.6 5.1 11.0 0.0 0.0 2.7 8.0 0.0 0.0 3.9 0.0 13.5 31.7 0.0 79.5 0.0 0.0 79.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.5 15.6 0.0 0.4 16.5 0.0 0.0 0.0 0.6 2.2 1.2 0.0 4.0 20.5 0.0 96.0 4.0 9/03 0.0 0.0 0.0 0.0 6.3 8.4 0.0 0.0 0.0 4.8 0.0 0.0 0.0 0.0 12.9 27.1 0.0 59.5 0.0 0.0 59.5 0.0 0.0 0.0 0.0 0.0 0.0 1.0 3.6 26.9 0.0 1.2 32.7 0.0 0.0 0.0 0.0 3.3 4.4 0.0 7.7 40.5 0.0 92.3 7.7 12/03 0.0 0.0 0.0 0.0 10.3 15.4 0.0 0.0 1.1 3.5 0.0 0.0 0.0 0.0 10.8 30.0 0.0 71.1 0.0 0.0 71.1 0.0 0.0 0.0 0.0 0.0 0.0 1.6 2.2 19.5 0.0 0.4 23.7 0.0 0.0 0.0 0.0 3.7 1.5 0.0 5.2 28.9 0.0 94.8 5.2 3/04 0.0 0.7 0.0 0.0 12.8 15.5 0.0 0.0 1.2 3.3 0.0 0.0 0.0 0.0 10.1 22.7 0.0 66.2 0.0 0.0 66.2 0.0 0.0 0.0 0.0 0.0 0.0 1.5 2.8 20.6 0.0 2.0 26.8 0.0 0.0 0.6 0.0 3.6 1.5 1.2 7.0 33.8 0.0 93.0 7.0 6/04 0.0 0.0 0.0 0.0 8.0 12.4 0.0 0.0 1.6 3.3 0.0 0.0 1.1 0.0 9.5 23.6 0.0 59.5 0.0 0.0 59.5 0.0 0.0 0.0 0.0 0.0 0.0 0.7 1.3 29.5 0.0 1.7 33.2 0.0 0.0 0.7 0.4 3.4 1.4 1.4 7.3 40.5 0.0 92.7 7.3 9/04 0.0 0.0 0.0 0.0 5.8 11.8 0.0 0.0 1.9 1.6 0.3 0.0 0.0 0.0 10.8 25.0 0.0 57.3 0.0 0.0 57.3 0.0 0.0 0.0 0.0 0.0 0.0 1.0 2.4 31.7 0.0 1.3 36.5 0.0 0.0 1.0 0.8 1.1 1.4 1.9 6.3 42.7 0.0 93.7 6.3 12/04 0.0 0.0 0.8 0.0 3.7 8.3 0.0 0.0 3.5 1.6 0.9 0.0 2.3 0.0 12.0 24.0 0.0 57.0 0.0 0.0 57.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 4.3 29.8 0.0 2.0 37.2 0.0 0.0 0.0 0.6 1.6 1.1 1.8 5.0 42.2 0.9 94.1 5.9 *Idx 0.3 0.9 1.0 1.1 9.5 8.2 0.3 0.2 2.6 2.5 0.8 0.3 3.3 3.2 8.0 21.3 0.1 63.7 0.1 0.1 63.8 0.0 0.0 0.0 0.1 0.1 0.1 8.8 2.9 22.1 0.1 1.7 35.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 35.6 0.8 99.3 1.0

*Idx - MSCI EAFE Index (N)

8 Tacoma Employees' Retirement System VV Country Allocations TT International Quarter Ended 12/31/10 Total Pacific Basin Other Countries Emerging Total Developed Total Emerging Austria Belgium Denmark Finland France Germany Greece Ireland Italy Netherlands Norway Portugal Spain Sweden Switzerland United Kingdom Other Europe Developed Total Europe Developed Other Europe Emerging Total Europe Emerging Total Europe Canada United States Total Americas Developed Other Americas Emerging Total Americas Emerging Total Americas Australia Hong Kong Japan New Zealand Singapore Total Pacific Basin Developed India Indonesia Malaysia China South Korea Taiwan Thailand Total Pacific Basin Emerging 3/05 0.0 0.0 0.8 2.8 6.7 11.9 0.0 0.0 5.3 2.2 1.0 0.0 0.0 3.3 9.5 18.6 0.0 62.0 0.0 0.0 62.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.8 27.3 0.0 1.5 31.6 0.0 0.0 0.0 0.4 0.9 3.4 0.7 5.4 37.1 0.9 93.7 6.3 6/05 0.0 0.0 1.1 2.6 8.6 15.3 0.0 0.0 2.0 1.4 2.0 0.0 0.0 5.3 7.3 26.4 0.0 71.9 0.0 0.0 71.9 0.0 0.0 0.0 0.0 0.0 0.0 2.6 1.8 21.2 0.0 1.4 27.1 0.0 0.0 0.0 0.0 1.0 0.0 0.0 1.0 28.1 0.0 99.0 1.0 9/05 0.0 0.2 1.1 1.5 10.2 14.4 0.0 0.0 2.1 0.8 2.4 0.0 0.0 4.6 7.9 20.8 0.0 66.0 0.0 0.0 66.0 0.0 0.0 0.0 0.0 0.0 0.0 3.1 1.4 26.7 0.0 0.9 32.2 0.0 0.0 0.0 0.5 1.4 0.0 0.0 1.8 34.0 0.0 98.2 1.8 12/05 0.9 1.0 0.0 0.0 11.7 13.2 0.0 0.0 2.0 0.0 3.5 0.0 0.0 2.7 8.8 23.0 0.0 66.8 0.0 0.0 66.8 0.0 0.0 0.0 0.0 0.0 0.0 2.5 1.5 27.0 0.0 1.0 31.9 0.0 0.0 0.0 0.0 1.2 0.0 0.0 1.2 33.2 0.0 98.8 1.2 3/06 1.4 1.1 0.0 0.0 10.6 10.3 0.0 0.0 1.8 0.3 4.7 0.0 2.1 2.5 9.2 22.0 0.9 66.9 0.0 0.0 66.9 0.0 0.0 0.0 0.0 0.0 0.0 2.6 1.5 26.3 0.0 1.2 31.6 0.0 0.0 0.0 0.8 0.7 0.0 0.0 1.5 33.1 0.0 98.5 1.5 6/06 0.0 0.9 0.0 0.0 11.3 7.7 0.0 0.0 1.7 0.9 3.7 0.0 0.0 2.9 8.7 27.9 1.3 67.0 0.0 0.0 67.0 0.0 0.0 0.0 0.0 0.0 0.0 2.8 1.0 26.3 0.0 1.5 31.6 0.0 0.0 0.0 0.3 1.1 0.0 0.0 1.4 33.0 0.0 98.6 1.4 9/06 0.0 1.5 0.0 0.0 13.5 9.0 0.0 0.0 2.0 2.4 3.2 0.0 0.0 4.6 6.2 30.6 0.0 73.0 0.0 0.0 73.0 0.0 0.0 0.0 0.0 0.0 0.0 2.6 1.5 20.7 0.0 1.3 26.2 0.0 0.0 0.0 0.2 0.6 0.0 0.0 0.8 27.0 0.0 99.2 0.8 12/06 0.0 0.8 1.5 0.0 14.8 8.3 0.0 0.0 4.0 1.3 3.0 0.0 1.6 5.0 5.1 27.4 0.0 72.8 0.0 0.0 72.8 0.0 0.0 0.0 0.0 0.0 0.0 2.5 2.0 20.4 0.0 1.4 26.3 0.0 0.0 0.0 0.5 0.4 0.0 0.0 0.9 27.2 0.0 99.1 0.9 3/07 0.0 0.0 0.0 1.3 13.4 11.2 0.4 0.0 3.6 3.2 4.3 0.0 0.0 2.9 3.7 21.6 0.0 65.4 0.0 0.0 65.4 0.0 0.3 0.3 0.0 0.0 0.3 3.9 1.7 25.5 0.0 1.7 32.8 0.0 0.0 0.0 0.9 0.6 0.0 0.0 1.5 34.3 0.0 98.5 1.5 6/07 0.0 0.0 0.0 2.1 8.6 18.3 0.0 0.0 2.1 4.0 4.6 0.0 0.0 2.1 3.2 25.0 0.0 69.9 0.0 0.0 69.9 0.0 0.0 0.0 0.3 0.3 0.3 5.3 1.0 21.6 0.0 0.9 28.8 0.0 0.0 0.0 0.2 0.7 0.0 0.0 1.0 29.7 0.0 98.7 1.3 9/07 0.0 0.0 0.0 2.1 5.4 16.6 0.0 0.0 1.7 1.1 4.9 0.0 0.0 2.2 8.4 27.7 0.0 70.1 0.0 0.0 70.1 0.0 0.0 0.0 0.0 0.0 0.0 6.1 1.4 20.7 0.0 1.0 29.3 0.0 0.0 0.0 0.1 0.0 0.5 0.0 0.7 29.9 0.0 99.3 0.7 12/07 0.0 0.0 0.0 2.1 8.0 18.8 0.0 0.0 1.6 2.1 5.0 0.0 1.1 0.0 6.5 25.1 0.0 70.3 0.0 0.0 70.3 0.0 0.0 0.0 0.0 0.0 0.0 6.1 2.6 19.6 0.0 1.3 29.6 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 29.7 0.0 100.0 0.1 3/08 0.0 0.0 0.0 2.1 9.2 18.6 0.0 0.0 2.1 2.6 3.9 0.0 1.6 0.0 4.5 28.4 0.0 73.1 0.0 0.0 73.1 0.0 0.0 0.0 0.0 0.0 0.0 5.4 1.6 18.4 0.0 1.1 26.5 0.0 0.0 0.0 0.2 0.2 0.0 0.0 0.4 26.9 0.0 99.6 0.4 6/08 0.0 0.0 0.9 0.0 8.4 14.7 0.0 0.0 0.0 1.6 3.9 0.0 3.2 0.0 6.7 31.4 0.0 70.8 0.0 0.0 70.8 0.0 0.0 0.0 0.0 0.0 0.0 6.1 1.2 20.8 0.0 0.9 29.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 29.0 0.1 99.9 0.1 9/08 0.0 0.0 0.9 0.0 8.6 13.6 0.0 0.0 0.0 1.3 4.1 0.0 2.3 0.0 4.2 32.8 0.0 67.9 0.0 0.0 67.9 0.0 0.0 0.0 0.0 0.0 0.0 4.4 1.4 24.4 0.0 0.9 31.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 31.1 1.0 99.0 1.0 12/08 0.0 0.0 0.2 0.0 9.4 12.2 0.0 0.0 0.0 0.9 1.8 0.0 3.7 0.0 9.3 27.9 0.0 65.4 0.0 0.0 65.4 0.0 0.0 0.0 0.0 0.0 0.0 3.9 1.6 27.4 0.0 0.7 33.5 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1 33.6 1.0 99.0 1.0 3/09 0.0 0.0 0.6 0.0 8.2 10.4 0.0 0.0 0.0 0.0 1.6 0.0 3.8 0.0 10.9 32.3 0.0 67.7 0.0 0.0 67.7 0.0 0.0 0.0 0.0 0.0 0.0 4.9 1.5 23.6 0.2 0.9 31.2 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1 31.2 1.1 98.9 1.1 6/09 0.0 0.0 0.9 0.0 6.3 10.0 0.0 0.0 0.0 0.0 1.6 0.0 3.9 0.9 9.8 32.4 0.0 65.8 0.0 0.0 65.8 0.0 0.0 0.0 0.0 0.0 0.0 6.1 1.6 24.2 0.2 1.1 33.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 33.2 1.0 99.0 1.0 9/09 0.0 0.0 0.8 0.0 7.7 13.1 1.5 1.3 1.8 1.8 1.8 0.0 2.7 2.4 3.8 28.7 0.0 67.4 0.0 0.0 67.4 0.0 0.2 0.2 0.0 0.0 0.2 6.1 1.5 23.5 0.2 1.0 32.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 32.3 0.1 100.0 0.1 12/09 0.0 0.0 0.9 0.0 10.5 14.3 0.0 1.3 0.0 3.9 1.7 0.0 2.0 2.8 2.1 27.0 0.0 66.5 0.0 0.0 66.5 0.0 0.2 0.2 0.0 0.0 0.2 5.4 1.3 25.2 0.0 1.1 33.1 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.1 33.2 0.1 99.8 0.2 3/10 0.0 0.0 0.9 0.0 10.8 12.5 0.0 0.0 0.0 2.6 1.6 0.0 2.0 1.3 2.3 28.3 0.0 62.3 0.0 0.0 62.3 0.0 0.2 0.2 0.0 0.0 0.2 5.3 1.8 29.7 0.0 0.7 37.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 37.5 0.0 100.0 0.0 6/10 0.0 0.0 1.0 0.0 9.0 12.3 0.0 0.5 0.0 2.8 2.0 0.0 2.2 0.0 2.0 30.8 0.0 62.5 0.0 0.0 62.5 0.0 0.2 0.2 0.0 0.0 0.2 4.5 1.5 30.5 0.0 0.9 37.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 37.3 0.0 100.0 0.0 9/10 0.0 0.0 1.2 0.0 6.4 11.2 0.0 0.4 0.0 2.3 1.9 0.0 2.9 0.0 3.7 33.3 0.0 63.2 0.0 0.0 63.2 0.0 0.2 0.2 0.2 0.2 0.4 6.6 2.3 25.3 0.0 1.6 35.7 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.1 35.8 0.7 99.1 0.9 12/10 0.0 0.0 1.0 0.0 6.2 15.5 0.0 0.0 0.0 1.9 0.0 0.0 0.0 0.0 1.5 32.7 0.0 58.8 0.4 0.4 59.2 0.0 0.0 0.0 0.1 0.1 0.1 6.8 1.6 29.6 0.0 1.3 39.3 0.0 0.0 0.0 0.1 0.0 0.2 0.0 0.2 39.6 1.1 98.1 1.9 *Idx 0.3 0.9 1.0 1.1 9.5 8.2 0.3 0.2 2.6 2.5 0.8 0.3 3.3 3.2 8.0 21.3 0.1 63.7 0.1 0.1 63.8 0.0 0.0 0.0 0.1 0.1 0.1 8.8 2.9 22.1 0.1 1.7 35.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 35.6 0.8 99.3 1.0

*Idx - MSCI EAFE Index (N)

9 Tacoma Employees' Retirement System VV Intl Equity Return Analysis TT International Quarter Ended 12/31/10

Index Intl Net Management Effect Local Index Index Total Equity Currency Country Country Quarter Currency Currency US $ Return Return Timing Hedging Currency Market Sector Stock Trading Total 06/99 5.75 -3.21 2.54 6.23 7.43 -0.95 -0.25 0.08 1.35 -0.27 2.19 1.54 3.69 09/99 -1.40 5.79 4.39 2.41 2.67 0.03 -0.29 0.14 1.01 -0.22 6.46 -9.12 -1.99 12/99 19.35 -2.36 16.99 36.12 37.02 -0.69 -0.22 0.26 4.71 1.44 20.56 -6.94 19.13

03/00 2.54 -2.64 -0.10 4.67 4.92 0.04 -0.29 0.64 0.37 0.59 5.82 -2.39 4.77 06/00 -2.25 -1.71 -3.96 -5.93 -5.69 0.02 -0.26 -0.37 -0.98 -0.03 -4.13 3.77 -1.97 09/00 -3.13 -4.93 -8.06 -5.38 -5.14 0.00 -0.24 -0.26 1.30 0.56 3.98 -2.65 2.68 12/00 -4.56 1.88 -2.69 -5.23 -4.99 0.02 -0.26 2.01 0.88 -0.72 -1.58 -2.89 -2.54 2000 -7.34 -6.82 -14.16 -11.71 -10.82 0.16 -1.05 2.02 1.56 0.40 3.81 -4.44 2.45 03/01 -7.76 -5.95 -13.71 -17.47 -17.25 0.04 -0.26 0.90 -1.15 -0.53 -1.66 -1.09 -3.75 06/01 1.05 -2.09 -1.05 -1.99 -1.75 0.00 -0.24 -0.21 -0.56 -1.09 -0.11 1.26 -0.95 09/01 -18.69 4.69 -14.00 -15.45 -15.23 0.05 -0.27 -0.04 -0.09 -0.21 -0.80 -0.09 -1.45 12/01 10.44 -3.47 6.97 2.89 3.14 0.03 -0.29 0.18 -1.28 -0.69 -2.56 0.52 -4.08 2001 -16.30 -5.15 -21.45 -29.63 -28.91 0.34 -1.06 0.83 -3.05 -2.49 -5.05 2.30 -8.18 03/02 1.97 -1.46 0.51 -1.05 -0.80 0.01 -0.26 -0.38 1.19 -1.30 -0.45 -0.37 -1.56 06/02 -11.29 9.17 -2.12 -3.41 -3.41 -0.00 0.00 -0.35 -0.57 -0.91 0.88 -0.34 -1.29 09/02 -20.04 0.31 -19.73 -17.41 -17.20 0.05 -0.26 0.56 -0.62 0.20 0.51 1.89 2.32 12/02 2.22 4.23 6.45 4.76 4.76 0.00 0.00 0.17 2.33 0.83 -0.95 -4.09 -1.70 2002 -26.06 10.12 -15.94 -17.31 -16.89 0.10 -0.52 -0.00 2.33 -1.20 -0.01 -2.06 -1.37 03/03 -9.43 1.22 -8.21 -8.20 -8.20 0.00 -0.00 -0.73 -0.65 0.25 0.62 0.52 0.01 06/03 15.31 3.96 19.27 20.98 20.98 0.00 -0.00 0.09 -0.32 1.94 0.06 -0.06 1.71 09/03 5.39 2.74 8.13 6.12 6.12 -0.00 -0.00 -0.27 -0.66 0.15 -1.72 0.50 -2.00 12/03 9.28 7.80 17.08 14.45 14.45 0.00 -0.00 -1.43 -0.26 0.22 0.34 -1.49 -2.63 2003 20.28 18.31 38.58 34.89 34.89 0.00 -0.00 -2.32 -1.88 2.58 -0.72 -1.35 -3.69 Index : MSCI EAFE Index (N) 10 Tacoma Employees' Retirement System VV Intl Equity Return Analysis TT International Quarter Ended 12/31/10

Index Intl Net Management Effect Local Index Index Total Equity Currency Country Country Quarter Currency Currency US $ Return Return Timing Hedging Currency Market Sector Stock Trading Total 03/04 4.06 0.28 4.34 5.55 5.55 -0.00 -0.00 0.37 -0.94 0.49 0.60 0.69 1.21 06/04 2.40 -2.19 0.22 -3.13 -3.13 -0.00 -0.00 0.40 -0.60 -1.71 -0.94 -0.49 -3.34 09/04 -1.03 0.75 -0.28 -3.85 -3.85 0.00 -0.00 -0.48 -0.68 -1.54 -0.38 -0.49 -3.57 12/04 6.83 8.49 15.32 15.10 15.70 -0.48 -0.12 -0.53 -0.78 1.76 -0.06 -0.02 -0.22 2004 12.66 7.58 20.24 13.15 13.74 -0.47 -0.12 -0.24 -2.97 -1.04 -0.78 -1.48 -7.09 03/05 3.36 -3.53 -0.17 -2.14 -2.08 0.13 -0.19 0.32 -0.66 -0.23 -0.33 -1.01 -1.98 06/05 4.55 -5.56 -1.01 1.00 1.13 0.03 -0.16 0.29 -0.31 -0.71 2.09 0.78 2.01 09/05 11.44 -1.07 10.37 13.90 14.09 -0.21 0.02 0.04 0.23 2.12 1.21 0.12 3.53 12/05 7.11 -3.03 4.08 7.89 8.35 -0.30 -0.16 0.04 0.78 0.91 0.26 2.29 3.81 2005 29.00 -15.46 13.53 21.46 22.41 -0.46 -0.49 0.68 0.03 2.08 3.24 2.85 7.92 03/06 8.19 1.21 9.39 12.29 12.60 -0.20 -0.12 0.11 0.09 1.17 1.81 0.03 2.89 06/06 -4.25 4.95 0.70 -0.17 -0.17 0.34 -0.33 0.10 -0.07 -0.99 0.08 0.01 -0.87 09/06 5.02 -1.10 3.93 2.04 2.27 -0.13 -0.10 -0.15 -0.67 -0.40 0.13 -0.55 -1.88 12/06 7.04 3.31 10.35 13.01 13.32 -0.25 -0.05 0.25 0.13 0.86 1.57 0.15 2.66 2006 16.45 9.88 26.34 29.27 30.27 -0.40 -0.60 0.30 -0.52 0.63 3.62 -0.09 2.93 03/07 3.34 0.73 4.07 2.97 3.76 -0.11 -0.68 -0.20 -0.14 1.28 -1.51 0.24 -1.10 06/07 5.92 0.49 6.40 9.11 7.04 0.02 2.06 -0.17 0.70 0.94 1.66 -2.49 2.71 09/07 -2.52 4.70 2.18 3.06 3.09 -0.04 0.01 0.12 0.22 1.06 -0.43 -0.06 0.88 12/07 -2.96 1.21 -1.75 -0.56 -0.54 0.04 -0.05 -0.33 0.37 -0.40 0.82 0.74 1.19 2007 3.54 7.63 11.17 15.14 13.86 -0.04 1.32 -0.57 1.15 2.91 0.52 -1.31 3.97 03/08 -14.95 6.04 -8.91 -8.73 -9.00 0.32 -0.04 -0.36 -0.50 1.72 -2.11 1.16 0.18 06/08 -0.88 -1.37 -2.25 -1.36 -1.34 0.04 -0.05 0.14 1.09 0.89 -0.30 -0.91 0.89 09/08 -13.02 -7.54 -20.56 -24.85 -25.08 0.95 -0.73 -0.11 0.18 0.27 -3.90 -0.96 -4.29 12/08 -18.54 -1.41 -19.95 -22.95 -23.64 0.78 -0.09 -1.68 1.29 -0.66 -1.38 -1.26 -3.00 Index : MSCI EAFE Index (N) 11 Tacoma Employees' Retirement System VV Intl Equity Return Analysis TT International Quarter Ended 12/31/10

Index Intl Net Management Effect Local Index Index Total Equity Currency Country Country Quarter Currency Currency US $ Return Return Timing Hedging Currency Market Sector Stock Trading Total 2008 -40.27 -3.11 -43.38 -47.87 -48.64 1.68 -0.91 -2.00 2.06 2.22 -7.51 -0.04 -4.49 03/09 -10.10 -3.84 -13.94 -11.53 -10.71 -0.79 -0.03 0.24 -0.07 -0.18 1.48 1.76 2.41 06/09 16.92 8.51 25.43 22.72 24.00 -1.21 -0.08 0.90 -1.78 0.73 -1.77 0.49 -2.71 09/09 14.82 4.64 19.47 22.05 23.06 -0.73 -0.28 -1.03 -0.07 -0.40 4.31 0.78 2.58 12/09 3.33 -1.15 2.18 -0.06 0.24 -0.21 -0.08 0.03 0.18 -0.26 -2.62 0.73 -2.24 2009 24.71 7.06 31.77 32.43 36.58 -3.68 -0.48 0.13 -1.74 -0.12 1.26 5.28 0.65 03/10 4.29 -3.43 0.87 3.50 3.70 -0.13 -0.07 -0.31 0.73 0.25 1.38 0.78 2.63 06/10 -11.15 -2.82 -13.97 -14.78 -15.26 0.56 -0.08 0.97 -0.23 -0.34 -0.65 -1.03 -0.81 09/10 7.10 9.38 16.48 17.82 18.65 -0.77 -0.06 -1.04 -0.15 1.40 0.59 1.38 1.34 12/10 5.73 0.88 6.61 8.19 8.46 -0.20 -0.07 -0.14 1.14 0.77 -0.77 0.86 1.58 2010 4.93 2.82 7.75 12.43 13.09 -0.37 -0.28 -0.54 1.50 2.08 0.53 1.77 4.68

From Inception 1.39 2.22 3.61 4.24 4.93 -0.26 -0.42 -0.11 0.44 0.75 2.19 -1.95 0.64 Avg Up Markets 6.48 1.84 8.32 9.21 9.49 -0.23 -0.05 0.89 Avg Down Markets -6.91 -0.91 -7.82 -8.28 -8.22 0.11 -0.18 -0.46 Index : MSCI EAFE Index (N) 12 Tacoma Employees' Retirement System VV Intl Equity Total Attribution Analysis TT International Quarter Ended 12/31/10

Portfolio MSCI EAFE Index (N) Variance Market Buy & Hold Market $ Country Sector Stock Country Value % Return Value % Return Weighting Weighting Selection Total Japan 25.29 14.54 21.14 12.09 0.23 0.26 0.36 0.85 Germany 11.19 15.26 7.95 9.34 0.09 0.32 0.35 0.75 Italy 0.00 -- 2.86 -3.34 0.28 0.00 0.00 0.28 Spain 2.85 -4.99 3.77 -8.37 0.14 0.10 0.00 0.23 Hong Kong 2.26 13.17 2.67 4.89 0.01 0.02 0.17 0.19 Belgium 0.00 -- 0.97 -4.14 0.10 0.00 0.00 0.10 Norway 1.85 13.81 0.81 11.04 0.05 0.06 -0.01 0.10 Singapore 1.57 8.81 1.70 5.89 0.00 0.04 0.01 0.05 Greece 0.00 -- 0.31 -7.26 0.04 0.00 0.00 0.04 Russia 0.68 21.46 0.00 11.10 0.03 0.00 0.00 0.03 Bermuda 0.17 17.89 0.00 18.85 0.02 0.00 0.00 0.02 United States 0.21 7.61 0.00 16.53 0.02 0.00 0.00 0.02 Portugal 0.00 -- 0.28 -0.64 0.02 0.00 0.00 0.02 Israel 0.00 -- 0.82 4.83 0.01 0.00 0.00 0.01 Finland 0.00 -- 1.12 5.88 0.01 0.00 0.00 0.01 Australia 6.60 11.31 8.58 10.14 -0.07 0.08 0.00 0.01 France 6.35 2.38 10.14 1.83 0.18 -0.04 -0.14 0.00 Luxembourg 0.00 -- 0.00 11.10 0.00 0.00 0.00 0.00 China 0.00 -- 0.00 41.79 0.00 0.00 0.00 0.00 Kazakhstan 0.00 -- 0.00 10.44 0.00 0.00 0.00 0.00

13 Tacoma Employees' Retirement System VV Intl Equity Total Attribution Analysis TT International Quarter Ended 12/31/10

Portfolio MSCI EAFE Index (N) Variance Market Buy & Hold Market $ Country Sector Stock Country Value % Return Value % Return Weighting Weighting Selection Total Cyprus 0.00 -- 0.00 -19.58 -0.00 0.00 0.00 0.00 Indonesia 0.06 -11.39 0.00 3.61 -0.00 0.00 0.00 -0.00 Scotland 0.00 -- 0.03 18.64 -0.00 0.00 0.00 -0.00 New Zealand 0.00 -- 0.10 11.93 -0.01 0.00 0.00 -0.01 Cayman Islands 0.00 -- 0.10 18.19 -0.01 0.00 0.00 -0.01 Isle of Man 0.00 -- 0.08 20.89 -0.01 0.00 0.00 -0.01 Austria 0.00 -- 0.32 11.76 -0.02 0.00 0.00 -0.02 Sweden 0.00 -- 3.18 7.33 -0.02 0.00 0.00 -0.02 Switzerland 3.69 6.24 7.82 7.72 -0.05 0.11 -0.17 -0.10 Denmark 1.18 -3.71 1.02 7.12 0.00 -0.13 0.00 -0.13 Ireland 0.38 -40.56 0.23 6.45 -0.00 -0.18 0.00 -0.18 Netherlands 2.34 -5.99 2.65 2.48 0.01 -0.16 -0.04 -0.19 United Kingdom 33.33 3.06 21.55 6.10 -0.06 0.29 -1.30 -1.07

Quarter Total 100.00 7.93 100.00 6.61 1.00 0.77 -0.77 0.99

14 Tacoma Employees' Retirement System VV Intl Equity Country Attribution Analysis TT International Quarter Ended 12/31/10

Portfolio MSCI EAFE Index (N) Variance Market Buy & Hold Market Local US $ Currency Market Country Country Value % Return Value % Return Return Weighting Weighting Weighting Italy 0.00 -- 2.86 -1.64 -3.34 0.07 0.21 0.28 Japan 25.29 14.54 21.14 8.83 12.09 0.10 0.13 0.23 France 6.35 2.38 10.14 3.62 1.83 0.10 0.08 0.18 Spain 2.85 -4.99 3.77 -6.76 -8.37 0.02 0.11 0.14 Belgium 0.00 -- 0.97 -2.45 -4.14 0.02 0.08 0.10 Germany 11.19 15.26 7.95 11.27 9.34 -0.09 0.18 0.09 Norway 1.85 13.81 0.81 10.21 11.04 -0.00 0.05 0.05 Greece 0.00 -- 0.31 -5.62 -7.26 0.01 0.04 0.04 Russia 0.68 21.46 0.00 8.23 11.10 0.01 0.02 0.03 Bermuda 0.17 17.89 0.00 18.08 18.85 -0.00 0.02 0.02 United States 0.21 7.61 0.00 11.18 16.53 0.01 0.01 0.02 Portugal 0.00 -- 0.28 1.11 -0.64 0.01 0.01 0.02 Israel 0.00 -- 0.82 2.14 4.83 -0.01 0.03 0.01 Netherlands 2.34 -5.99 2.65 4.27 2.48 0.01 0.00 0.01 Finland 0.00 -- 1.12 7.75 5.88 0.03 -0.02 0.01 Hong Kong 2.26 13.17 2.67 5.03 4.89 0.00 0.00 0.01 Singapore 1.57 8.81 1.70 3.13 5.89 -0.00 0.00 0.00 Denmark 1.18 -3.71 1.02 9.00 7.12 -0.00 0.01 0.00 Kazakhstan 0.00 -- 0.00 11.16 10.44 -0.00 0.00 0.00 Cyprus 0.00 -- 0.00 -18.16 -19.58 -0.00 -0.00 -0.00

Currency Weighting = [ Index US $ Ret - Index Local Ret + Index Total Local Ret - Index Total US $ Ret ] x [ Portfolio Country Pct - Index Country Pct ] / 100 Market Weighting = [ Index Local Ret - Index Total Local Ret ] x [ Portfolio Country Pct - Index Country Pct ] / 100 Country Weighting = Currency Weighting + Market Weighting

15 Tacoma Employees' Retirement System VV Intl Equity Country Attribution Analysis TT International Quarter Ended 12/31/10

Portfolio MSCI EAFE Index (N) Variance Market Buy & Hold Market Local US $ Currency Market Country Country Value % Return Value % Return Return Weighting Weighting Weighting Luxembourg 0.00 -- 0.00 3.87 11.10 0.00 -0.00 0.00 China 0.00 -- 0.00 41.98 41.79 -0.00 0.00 0.00 Ireland 0.38 -40.56 0.23 8.33 6.45 -0.00 0.00 -0.00 Indonesia 0.06 -11.39 0.00 3.34 3.61 -0.00 -0.00 -0.00 Scotland 0.00 -- 0.03 19.41 18.64 0.00 -0.00 -0.00 New Zealand 0.00 -- 0.10 5.39 11.93 -0.01 0.00 -0.01 Cayman Islands 0.00 -- 0.10 18.35 18.19 0.00 -0.01 -0.01 Isle of Man 0.00 -- 0.08 17.74 20.89 -0.00 -0.01 -0.01 Austria 0.00 -- 0.32 13.73 11.76 0.01 -0.03 -0.02 Sweden 0.00 -- 3.18 7.21 7.33 0.02 -0.05 -0.02 Switzerland 3.69 6.24 7.82 2.77 7.72 -0.17 0.12 -0.05 United Kingdom 33.33 3.06 21.55 6.78 6.10 -0.18 0.12 -0.06 Australia 6.60 11.31 8.58 4.04 10.14 -0.10 0.03 -0.07

Quarter Total 100.00 7.93 100.00 5.73 6.61 -0.14 1.14 1.00

16 Tacoma Employees' Retirement System VV Equity Summary Statistics TT International Quarter Ended 12/31/10

10 Largest Holdings 10 Best Performers Name %Port $(000) Name %Port %Return Xstrata Plc 3.6 3,459 Paladin Energy Limit 0.1 45.38 Bayer Ag 3.5 3,383 Singamas Container H 0.3 38.92 Royal Dutch Shell 3.0 2,900 Volkswagen Ag 2.8 34.75 Lloyds Banking Group 3.0 2,878 Komatsu 0.9 30.59 Rio Tinto 2.9 2,844 Keppel Corp 0.4 29.43 Volkswagen Ag 2.8 2,655 Mizuho Financial Gro 0.9 29.17 Barclays 2.6 2,490 Orix Corporation 1.0 28.99 Royal Bank of Scotla 2.4 2,293 Thyssenkrupp Ag 2.0 27.29 Continental Ag 2.4 2,281 Sumitomo Heavy Indus 1.1 25.04 Man Se 2.2 2,098 Fuji Media Holding 0.1 24.42

Portfolio Characteristic Distribution (%) 10 Worst Performers Quartile Mkt. Cap P/E Yield Name %Port %Return 1st 72.4 25.1 15.9 Royal Bank of Scotla 2.4 -17.78 2nd 11.4 26.1 20.3 Barclays 2.6 -12.88 3rd 10.9 31.2 20.3 Lloyds Banking Group 3.0 -11.93 4th 5.2 17.5 43.4 Astrazeneca 1.1 -10.22 MSCI EAFE Index (N) Ing Groep Nv 1.9 -5.99 Carlsberg As 1.0 -3.71 25th Percentile 14,835,689 27.7 3.7 Qantas Airways 0.4 -3.62 50th Percentile 7,065,051 17.5 2.2 Bae Systems 1.6 -2.09 75th Percentile 3,952,024 10.4 1.5 First Pacific Co 0.4 -0.84 Glaxosmithkline 1.8 -0.39

17 Tacoma Employees' Retirement System VV Equity Portfolio Activity TT International Quarter Ended 12/31/10

Additions Deletions Security Name Quantity $(000) New Security Name Quantity $(000) Eliminated Porsche Automobil Ho 23,784 1,904 * Telefonica Sa 101,364 2,514 * Bp 192,005 1,400 * Credit Suisse Group 42,376 1,822 * Barclays 283,438 1,161 Statoil Asa 77,807 1,630 * Royal Bank of Scotla 1,635,551 1,000 Carrefour 22,932 1,234 * Kingfisher 241,973 998 * Astrazeneca 20,494 938 Lloyds Banking Group 872,015 897 Vedanta Resources 27,348 933 * Dentsu Inc 25,200 783 * Ntt Docomo Inc 558 928 * Thyssenkrupp Ag 18,441 767 Cairn Energy Plc 127,816 914 * Arcelormittal 19,328 736 * Volkswagen Ag 4,519 736 Mitsui & Co 37,000 612 African Barrick Gold 74,651 694 * Continental Ag 7,415 588 West Japan Railway 164 588 * Inpex Corporation 98 575 * Shimadzu Corp 63,000 484 * Smc Corp 3,300 566 * Royal Dutch Shell 14,005 465 Nippon Sheet Glass C 208,000 562 London Mining Plc 85,235 442 * Bae Systems 94,917 490 Benesse Holdings Inc 8,400 404 * Tokyo Electron 7,600 482 * Sumitomo Metal Minin 26,000 397 * Mizuho Financial Gro 242,300 457 Murata Mfg Co 7,300 384 * Denso Corp 13,000 449 * Yamaha Motor Co 25,500 382 * Sumitomo Mitsui Fina 12,400 442 Asahi Breweries 17,400 348 * Adidas Ag 6,692 439 Rakuten Inc 468 342 * Ube Industries 144,000 433 * Bank of Ireland(Gove 397,659 337 * Lukoil Oao 7,450 421 * Takeda Pharmaceutica 6,800 312 * Toyota Motor Corp 10,500 417 Fanuc Ltd 2,000 308 Hitachi 77,000 411 Cheung Kong (Holding 20,000 303 * Orix Corporation 4,144 408 Fuji Media Holding 191 302

18 Tacoma Employees' Retirement System VV Equity Portfolio Activity TT International Quarter Ended 12/31/10

Additions Deletions Security Name Quantity $(000) New Security Name Quantity $(000) Eliminated Bayer Ag 4,974 369 Fuji Film Hld Corp 9,100 301 * Vallar Plc 21,017 366 * Compagnie Financiere 4,925 291 Credit Saison Co 21,700 357 * Tesco 42,370 282 Fujitsu 50,000 348 * Mitsubishi Ufj Finan 46,400 251 Omron Corp 12,600 334 Glaxosmithkline 12,775 248 Mazda Motor Corp 111,000 319 * Familymart Co 6,200 222 * British Airways 73,922 315 Santos Limited 17,329 215 * Furukawa Electric Co 65,000 293 * Daiichi Sankyo Compa 9,800 215 Woodside Petroleum 6,650 290 * Capitaland Ltd 69,000 213 * Nidec Corporation 2,815 285 Westpac Banking Corp 8,296 187 * Nomura Research Inst 12,700 283 * News Corporation 12,130 185 * Ntt Urban Developm 263 259 Yamada Denki Co 2,620 179 Man Se 2,053 245 Asciano Limited 110,427 176 * Honda Motor Co 6,100 227 * Dena Co Ltd 4,500 162 Nissan Motor Co 23,100 220 Oz Minerals Ltd 111,610 157 * Xstrata Plc 9,146 216 Singapore Post Ltd 157,000 146 * Incitec Pivot 48,524 197 * Imperial Tobacco Gro 4,647 143 Sumitomo Heavy Indus 30,546 197 Qantas Airways 49,918 130 Australia & New Zeal 8,067 193 Boc Hong Kong(Hldgs) 34,000 116 Groupe Eurotunnel Sa 21,538 190 Agl Energy 7,026 110 * Overseas Union Enter 74,000 190 * Hysan Development 29,000 104 * Honda Motor Co 4,600 182 * Singamas Container H 309,788 99 Brambles Ltd 22,777 166 Ing Groep Nv 9,823 96 Rio Tinto 2,213 155 Wharf(Hldgs) 12,000 92 Hutchison Whampoa 15,000 154 * Cheung Kong Infrastr 22,000 87 *

19 Tacoma Employees' Retirement System VV Equity Portfolio Activity TT International Quarter Ended 12/31/10

Additions Deletions Security Name Quantity $(000) New Security Name Quantity $(000) Eliminated Taiwan Semiconductor 11,700 147 * Daiwa House Inds 7,000 86 Komatsu 4,557 138 Jx Holdings Inc 12,600 86 Groupe Eurotunnel Sa 14,184 134 * Oversea-Chinese Bank 11,000 85 Schneider Electric 861 129 Itochu Techno-Soluti 2,300 75 * National Australia B 4,910 119 Round One Corp 19,503 71 * T&D Holdings Inc 4,500 114 Rio Tinto Limited 807 71 Television Broadcast 21,000 113 * Paladin Energy Limit 13,364 68 Jfe Holdings Inc 3,200 112 K-Green Trust 76,000 63 Origin Energy Ltd 6,156 105 Carlsberg As 610 61 Qbe Insurance Group 5,305 99 * Sberbank of Russia 17,495 60 Chongqing Rural Comm 119,000 80 * Pt Indofood Sukses M 92,500 56 * Alumina Limited 30,848 78 * Tabcorp Holdings Lim 7,757 56 Bridgestone Corp 4,000 77 Swire Pacific 3,000 49 Keppel Corp 7,698 68 Carnival Plc 963 45 Sony Corp 1,800 65 Noble Group 23,000 39 Amcor Limited 9,079 63 Mitsubishi Estate Co 2,000 37 Canon Inc 1,200 62 First Pacific Co 32,328 29 Newcrest Mining 1,219 51 Kubota Corp 3,000 28 Danone 635 40 Mitsubishi Materials 8,000 26 China Minzhong Food 13,000 14 Jsr Corp 1,300 24 Bhp Billiton Limited 263 12 Pioneer Corp 5,700 24 Mitsubishi Corp 449 12 Rolls Royce Group 1,648 16 Hongkong Land Holdin 1,000 7 Nippon Electric Glas 1,000 14 Hong Kong Electric H 1,000 6

20 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Australia Agl Energy 7,026 0 15.657 15.612 110 0 0.1 0.0 -0.29 Alumina Limited MAT 0 30,848 1.753 2.542 0 78 0.0 0.1 NA Amcor Limited MAT 66,773 75,852 6.303 6.919 421 525 0.5 0.5 9.77 Asciano Limited IND 110,427 0 1.598 1.635 176 0 0.2 0.0 2.34 Australia & New Zeal FIN 33,240 41,307 22.928 23.935 762 989 0.9 1.0 8.92 Bhp Billiton Limited MAT 24,842 25,105 37.675 46.384 936 1,164 1.1 1.2 23.12 Brambles Ltd IND 48,659 71,436 6.071 7.298 295 521 0.3 0.5 20.22 Incitec Pivot MAT 0 48,524 3.476 4.059 0 197 0.0 0.2 NA National Australia B FIN 34,057 38,967 24.535 24.294 836 947 0.9 1.0 3.51 Newcrest Mining MAT 4,664 5,883 38.410 41.453 179 244 0.2 0.3 7.92 Origin Energy Ltd ENR 10,687 16,843 15.347 17.077 164 288 0.2 0.3 11.28 Oz Minerals Ltd MAT 111,610 0 1.409 1.763 157 0 0.2 0.0 25.15 Paladin Energy Limit ENR 39,161 25,797 3.476 5.053 136 130 0.2 0.1 45.38 Qantas Airways IND 202,879 152,961 2.701 2.604 548 398 0.6 0.4 -3.62 Qbe Insurance Group FIN 0 5,305 16.712 18.605 0 99 0.0 0.1 NA Rio Tinto Limited MAT 5,110 4,303 74.333 87.611 380 377 0.4 0.4 17.86 Santos Limited ENR 17,329 0 12.403 13.479 215 0 0.2 0.0 8.68 Tabcorp Holdings Lim CDI 46,025 38,825 6.697 7.288 308 283 0.4 0.3 8.83 Westpac Banking Corp FIN 8,296 0 22.502 22.766 187 0 0.2 0.0 5.97 Woodside Petroleum ENR 0 6,650 42.487 43.626 0 290 0.0 0.3 NA 5,811 6,530 6.6 6.8 11.31

21 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Bermuda Noble Group IND 105,000 82,000 1.437 1.694 151 139 0.2 0.1 17.89 151 139 0.2 0.1 17.89 Channel Islands Vallar Plc MAT 0 21,017 14.442 17.426 0 366 0.0 0.4 NA 0 366 0.0 0.4 NA China Chongqing Rural Comm FIN 0 119,000 NA 0.673 0 80 0.0 0.1 NA 0 80 0.0 0.1 NA Denmark Carlsberg As CST 9,908 9,298 104.420 100.543 1,035 935 1.2 1.0 -3.71 1,035 935 1.2 1.0 -3.71 France Arcelormittal MAT 0 19,328 32.983 38.073 0 736 0.0 0.8 NA Carrefour CST 22,932 0 53.809 41.387 1,234 0 1.4 0.0 -23.09 Danone CST 23,647 24,282 59.898 63.080 1,416 1,532 1.6 1.6 5.31 Groupe Eurotunnel Sa 0 14,184 8.191 9.431 0 134 0.0 0.1 NA Groupe Eurotunnel Sa 157,238 178,776 8.515 8.827 1,339 1,578 1.5 1.6 3.67 Schneider Electric IND 12,624 13,485 126.977 150.254 1,603 2,026 1.8 2.1 18.33 5,592 6,006 6.4 6.2 2.38 Germany Adidas Ag CDI 3,788 10,480 61.994 65.588 235 687 0.3 0.7 5.80 Bayer Ag HTH 40,622 45,596 69.830 74.188 2,837 3,383 3.2 3.5 6.24

22 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Germany (cont.) Continental Ag CDI 21,337 28,752 77.830 79.339 1,661 2,281 1.9 2.4 1.94 Man Se IND 15,523 17,576 109.161 119.385 1,695 2,098 1.9 2.2 9.37 Porsche Automobil Ho CDI 0 23,784 49.591 80.037 0 1,904 0.0 2.0 NA Thyssenkrupp Ag MAT 27,779 46,220 32.656 41.568 907 1,921 1.0 2.0 27.29 Volkswagen Ag CDI 20,818 16,299 120.861 162.864 2,516 2,655 2.9 2.8 34.75 9,850 14,929 11.2 15.5 15.26 Hong Kong Boc Hong Kong(Hldgs) FIN 79,000 45,000 3.169 3.403 250 153 0.3 0.2 7.38 Cheung Kong (Holding FIN 20,000 0 15.148 15.424 303 0 0.3 0.0 1.82 Cheung Kong Infrastr UTL 22,000 0 3.967 4.580 87 0 0.1 0.0 15.43 First Pacific Co FIN 424,000 391,672 0.908 0.900 385 353 0.4 0.4 -0.84 Hong Kong Electric H UTL 24,500 23,500 6.074 6.303 149 148 0.2 0.2 3.78 Hutchison Whampoa IND 0 15,000 9.326 10.291 0 154 0.0 0.2 NA Hysan Development FIN 29,000 0 3.581 4.708 104 0 0.1 0.0 31.48 Singamas Container H IND 1,136,000 826,212 0.231 0.320 262 265 0.3 0.3 38.92 Swire Pacific FIN 17,000 14,000 13.770 16.440 234 230 0.3 0.2 19.39 Television Broadcast CDI 0 21,000 5.706 5.403 0 113 0.0 0.1 NA Wharf(Hldgs) FIN 33,000 21,000 6.428 7.693 212 162 0.2 0.2 19.68 1,986 1,578 2.3 1.6 13.17 Indonesia Pt Indofood Sukses M CST 92,500 0 0.611 0.541 56 0 0.1 0.0 -11.39 56 0 0.1 0.0 -11.39

23 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Ireland Bank of Ireland(Gove FIN 397,659 0 0.846 0.503 337 0 0.4 0.0 -40.56 337 0 0.4 0.0 -40.56 Japan Asahi Breweries CST 17,400 0 19.990 19.395 348 0 0.4 0.0 -2.34 Benesse Holdings Inc CDI 8,400 0 48.121 46.113 404 0 0.5 0.0 -4.17 Bridgestone Corp CDI 19,000 23,000 18.207 19.345 346 445 0.4 0.5 6.92 Canon Inc INF 12,600 13,800 46.624 51.908 587 716 0.7 0.7 13.04 Credit Saison Co FIN 0 21,700 13.359 16.460 0 357 0.0 0.4 NA Daiichi Sankyo Compa 30,500 20,700 20.326 21.910 620 454 0.7 0.5 7.79 Daiwa House Inds FIN 28,000 21,000 10.055 12.305 282 258 0.3 0.3 22.38 Dena Co Ltd CDI 18,000 13,500 31.470 35.904 566 485 0.6 0.5 14.09 Denso Corp CDI 0 13,000 29.627 34.548 0 449 0.0 0.5 NA Dentsu Inc CDI 0 25,200 23.151 31.083 0 783 0.0 0.8 NA Familymart Co CST 6,200 0 35.827 37.729 222 0 0.3 0.0 5.31 Fanuc Ltd IND 3,900 1,900 127.244 153.751 496 292 0.6 0.3 20.83 Fuji Film Hld Corp INF 9,100 0 33.098 36.200 301 0 0.3 0.0 9.37 Fuji Media Holding CDI 251 60 1272.444 1583.133 319 95 0.4 0.1 24.42 Fujitsu INF 0 50,000 7.015 6.966 0 348 0.0 0.4 NA Furukawa Electric Co IND 0 65,000 3.759 4.500 0 293 0.0 0.3 NA Hitachi INF 178,000 255,000 4.369 5.339 778 1,361 0.9 1.4 22.19 Honda Motor Co CDI 0 6,100 35.363 37.187 0 227 0.0 0.2 NA Honda Motor Co CDI 0 4,600 35.468 39.640 0 182 0.0 0.2 NA

24 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Japan (cont.) Inpex Corporation 0 98 4704.333 5862.771 0 575 0.0 0.6 NA Itochu Techno-Soluti INF 2,300 0 32.631 37.544 75 0 0.1 0.0 15.06 Jfe Holdings Inc MAT 10,500 13,700 30.560 34.868 321 478 0.4 0.5 14.10 Jsr Corp MAT 18,600 17,300 17.010 18.679 316 323 0.4 0.3 9.82 Jx Holdings Inc ENR 83,600 71,000 5.794 6.794 484 482 0.6 0.5 17.26 Komatsu IND 25,500 30,057 23.198 30.294 592 911 0.7 0.9 30.59 Kubota Corp IND 45,000 42,000 9.145 9.482 412 398 0.5 0.4 3.68 Mazda Motor Corp CDI 0 111,000 2.406 2.873 0 319 0.0 0.3 NA Mitsubishi Corp IND 36,600 37,049 23.713 27.101 868 1,004 1.0 1.0 14.29 Mitsubishi Estate Co FIN 30,000 28,000 16.256 18.569 488 520 0.6 0.5 14.23 Mitsubishi Materials MAT 113,000 105,000 2.873 3.193 325 335 0.4 0.3 11.16 Mitsubishi Ufj Finan FIN 235,900 189,500 4.656 5.413 1,098 1,026 1.2 1.1 16.24 Mitsui & Co IND 8,000 45,000 14.867 16.534 119 744 0.1 0.8 11.21 Mizuho Financial Gro FIN 224,900 467,200 1.460 1.886 328 881 0.4 0.9 29.17 Murata Mfg Co INF 7,300 0 52.669 70.156 384 0 0.4 0.0 33.20 Nidec Corporation IND 6,000 8,815 88.820 101.227 533 892 0.6 0.9 13.97 Nippon Electric Glas INF 29,000 28,000 13.622 14.450 395 405 0.4 0.4 6.08 Nippon Sheet Glass C IND 139,800 347,800 2.179 2.700 305 939 0.3 1.0 23.94 Nissan Motor Co CDI 91,300 114,400 8.726 9.531 797 1,090 0.9 1.1 9.22 Nomura Research Inst INF 0 12,700 18.781 22.292 0 283 0.0 0.3 NA Ntt Docomo Inc TEL 558 0 1663.874 1748.351 928 0 1.1 0.0 5.08 Ntt Urban Developm FIN 591 854 840.316 986.376 497 842 0.6 0.9 17.38

25 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Japan (cont.) Omron Corp INF 22,400 35,000 22.696 26.521 508 928 0.6 1.0 16.86 Orix Corporation FIN 5,590 9,734 76.371 98.514 427 959 0.5 1.0 28.99 Pioneer Corp CDI 85,000 79,300 3.483 4.143 296 329 0.3 0.3 18.93 Rakuten Inc CDI 468 0 731.386 838.419 342 0 0.4 0.0 14.80 Round One Corp CDI 19,503 0 3.651 6.202 71 0 0.1 0.0 69.87 Shimadzu Corp INF 63,000 0 7.685 7.780 484 0 0.5 0.0 1.24 Smc Corp IND 0 3,300 131.793 171.506 0 566 0.0 0.6 NA Sony Corp CDI 18,800 20,600 30.895 36.089 581 743 0.7 0.8 16.81 Sumitomo Heavy Indus IND 134,000 164,546 5.147 6.436 690 1,059 0.8 1.1 25.04 Sumitomo Metal Minin MAT 26,000 0 15.262 17.496 397 0 0.5 0.0 14.64 Sumitomo Mitsui Fina FIN 27,581 39,981 29.112 35.657 803 1,426 0.9 1.5 22.48 T&D Holdings Inc 12,300 16,800 20.828 25.399 256 427 0.3 0.4 21.95 Takeda Pharmaceutica HTH 6,800 0 45.906 49.257 312 0 0.4 0.0 7.30 Tokyo Electron INF 0 7,600 50.096 63.375 0 482 0.0 0.5 NA Toyota Motor Corp CDI 31,300 41,800 35.887 39.702 1,123 1,660 1.3 1.7 10.63 Ube Industries MAT 0 144,000 2.215 3.008 0 433 0.0 0.4 NA West Japan Railway IND 164 0 3583.912 3742.063 588 0 0.7 0.0 4.41 Yamada Denki Co CDI 7,580 4,960 62.006 68.307 470 339 0.5 0.4 10.16 Yamaha Motor Co CDI 25,500 0 14.999 16.312 382 0 0.4 0.0 8.76 22,266 28,543 25.3 29.6 14.54 Netherlands Ing Groep Nv FIN 198,139 188,316 10.389 9.766 2,059 1,839 2.3 1.9 -5.99

26 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Netherlands (cont.) 2,059 1,839 2.3 1.9 -5.99 Norway Statoil Asa ENR 77,807 0 20.952 23.845 1,630 0 1.9 0.0 13.81 1,630 0 1.9 0.0 13.81 Russia Lukoil Oao ENR 0 7,450 56.800 56.500 0 421 0.0 0.4 NA Sberbank of Russia FIN 212,581 195,086 2.805 3.407 596 665 0.7 0.7 21.46 596 1,086 0.7 1.1 21.46 Singapore Capitaland Ltd FIN 69,000 0 3.087 2.896 213 0 0.2 0.0 -6.17 China Minzhong Food CST 208,000 221,000 1.042 1.062 217 235 0.2 0.2 1.93 Hongkong Land Holdin FIN 17,000 18,000 6.210 7.220 106 130 0.1 0.1 16.26 K-Green Trust IND 216,200 140,200 0.829 0.835 179 117 0.2 0.1 0.79 Keppel Corp IND 35,000 42,698 6.827 8.837 239 377 0.3 0.4 29.43 Oversea-Chinese Bank FIN 41,599 30,599 6.728 7.712 280 236 0.3 0.2 14.63 Overseas Union Enter CDI 0 74,000 2.243 2.568 0 190 0.0 0.2 NA Singapore Post Ltd IND 157,000 0 0.928 0.921 146 0 0.2 0.0 0.36 1,379 1,285 1.6 1.3 8.81 Spain Telefonica Sa TEL 101,364 0 24.799 22.759 2,514 0 2.9 0.0 -4.99 2,514 0 2.9 0.0 -4.99

27 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Switzerland Compagnie Financiere CDI 29,483 24,558 48.426 59.007 1,428 1,449 1.6 1.5 21.85 Credit Suisse Group FIN 42,376 0 42.991 40.414 1,822 0 2.1 0.0 -5.99 3,250 1,449 3.7 1.5 6.24 Taiwan Taiwan Semiconductor INF 0 11,700 10.140 12.540 0 147 0.0 0.2 NA 0 147 0.0 0.2 NA United Kingdom African Barrick Gold MAT 74,651 0 9.297 9.566 694 0 0.8 0.0 2.89 Astrazeneca HTH 43,873 23,379 50.954 45.748 2,235 1,070 2.5 1.1 -10.22 Bae Systems IND 202,675 297,592 5.394 5.167 1,093 1,538 1.2 1.6 -2.09 Barclays FIN 324,491 607,929 4.721 4.097 1,532 2,490 1.7 2.6 -12.88 Bp ENR 0 192,005 6.741 7.289 0 1,400 0.0 1.5 NA British Airways IND 373,443 447,365 3.826 4.266 1,429 1,909 1.6 2.0 11.51 Cairn Energy Plc ENR 127,816 0 7.148 6.576 914 0 1.0 0.0 -8.00 Carnival Plc CDI 24,610 23,647 39.427 46.688 970 1,104 1.1 1.1 18.73 Glaxosmithkline HTH 100,414 87,639 19.768 19.414 1,985 1,701 2.3 1.8 -0.39 Imperial Tobacco Gro CST 37,970 33,323 29.893 30.812 1,135 1,027 1.3 1.1 3.07 Kingfisher CDI 0 241,973 3.691 4.124 0 998 0.0 1.0 NA Lloyds Banking Group FIN 1,925,455 2,797,470 1.168 1.029 2,249 2,878 2.6 3.0 -11.93 London Mining Plc MAT 85,235 0 5.184 4.908 442 0 0.5 0.0 -5.32 Rio Tinto MAT 38,275 40,488 58.636 70.243 2,244 2,844 2.5 2.9 19.80 Rolls Royce Group IND 199,477 197,829 9.510 9.754 1,897 1,930 2.2 2.0 2.57

28 Tacoma Employees' Retirement System VV International Equity Holdings TT International Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name Sector 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return United Kingdom (cont.) Royal Bank of Scotla FIN 2,112,897 3,748,448 0.744 0.612 1,572 2,293 1.8 2.4 -17.78 Royal Dutch Shell 101,413 87,408 30.294 33.177 3,072 2,900 3.5 3.0 10.90 Tesco CST 345,544 303,174 6.681 6.654 2,309 2,017 2.6 2.1 0.70 Vedanta Resources MAT 27,348 0 34.116 39.407 933 0 1.1 0.0 16.24 Xstrata Plc MAT 137,614 146,760 19.193 23.571 2,641 3,459 3.0 3.6 22.81 29,347 31,556 33.3 32.7 3.06 United States News Corporation CDI 12,130 0 15.279 16.442 185 0 0.2 0.0 7.61 185 0 0.2 0.0 7.61

29 Tacoma Employees' Retirement System VV Fund Return Table Quarter Ended 12/31/10

Since Inception Inception Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years 12/31/00 Date Return BlackRock US Debt Index -1.28 1.18 6/30/10 1.18 Barclays Aggregate -1.30 1.15 6/30/10 1.15

Metropolitan West -0.39 2.75 6.91 11.55 8.73 7.99 3/31/02 7.26 Barclays Aggregate -1.30 1.15 4.68 6.54 5.91 5.80 3/31/02 5.70 Barclays Aggregate + 0.75% -1.11 1.52 5.24 7.29 6.66 6.55 3/31/02 6.45

Core Fixed Income Composite -0.52 2.52 6.67 11.30 8.64 7.94 6.91 9/30/81 10.05 Barclays Aggregate -1.30 1.15 4.68 6.54 5.91 5.80 5.84 9/30/81 9.31

Indices Since Barclays Aggregate -1.30 1.15 4.68 6.54 5.91 5.80 5.84 9/30/81 9.31 Citigroup LPF -3.17 0.67 7.14 8.98 7.09 6.44 6.81 9/30/81 10.52 91-Day Treasury Bill 0.04 0.08 0.11 0.13 0.79 2.42 2.39 9/30/81 5.38 Citigroup Non-US WGBI -1.45 8.84 7.47 5.21 6.54 7.59 7.42 9/30/81 9.40 Citigroup HY Cash Pay 3.13 9.75 9.88 14.24 9.60 8.18 8.68 9/30/81

1 Tacoma Employees' Retirement System VV Performance Comparison Total Returns of Fixed Income Portfolios Periods Ended 12/31/10 35%

30%

25%

20%

15% W F W F Rate of Return 10% * W F W F W F * a * * F * 5% a * a a a 5th a W F 0% 25th B a * Med W F 75th B a 95th * -5%

1 Quarter 2 Quarters 3 Quarters 1 Year 2 Years 3 Years 5 Years 10 Years

B BlackRock US Debt Index -1.28 (71) 1.18 (72) W Metropolitan West -0.39 (39) 2.75 (30) 6.91 (24) 11.55 (17) 14.21 (23) 8.73 (14) 7.99 (11) F Core Fixed Income Comp -0.52 (44) 2.52 (33) 6.67 (27) 11.30 (18) 14.08 (23) 8.64 (15) 7.94 (11) 6.91 (23) * Citigroup LPF -3.17 (92) 0.67 (87) 7.14 (23) 8.98 (32) 6.06 (72) 7.09 (33) 6.44 (38) 6.81 (24) a Barclays Aggregate -1.30 (72) 1.15 (73) 4.68 (61) 6.54 (62) 6.24 (71) 5.91 (60) 5.80 (60) 5.84 (62)

Median -0.70 1.75 5.16 7.27 8.68 6.36 6.08 6.13 Number of Funds 887 886 885 882 863 842 784 618 2 Tacoma Employees' Retirement System VV Treasury Yield Curve Quarter Ended 12/31/10

5.0

4.5

4.0 * 3.5 FW 3.0 a B 2.5

Yield 2.0

1.5

1.0

0.5

0.0

-0.5 0.0 5.0 10.0 15.0 20.0 25.0 30.0

Description Legend Yrs to Mat Yield Treasury BlackRock US Debt Index B 6.33 2.76 Yrs to Mat Yield Metropolitan West W 8.39 3.45 1.00 0.32 Core Fixed Income Composite F 8.00 3.34 5.00 1.56 Citigroup LPF * 12.39 3.90 10.00 3.37 Barclays Aggregate a 7.08 2.97 15.00 4.19 20.00 4.53 25.00 4.59

3 Tacoma Employees' Retirement System VV Fixed Income Fund Structural Characteristics Core Fixed Income Composite Quarter Ended 12/31/10

# Effective Maturity Sectors Manager $(MIL) Bond <1 1-10 10-20 >20 QLTY FIN FOR GA IND MISC MTGETRAN UTL BlackRock US Debt Index 41.5 5,469 1.3 87.9 3.4 7.4 AAA 7 4 41 10 1 35 0 2 Metropolitan West 248.7 189 -0.4 71.5 11.2 17.8 AA 35 0 32 7 -12 36 2 0 Core Fixed Income Composite 290.2 5,655 -0.2 73.8 10.1 16.3 AA 31 1 33 7 -10 36 2 0

Barclays Aggregate 15,133,900.0 7,999 0.0 87.8 4.7 7.6 AAA 7 2 43 10 0 35 0 2

4 Tacoma Employees' Retirement System VV Fund Fixed Income Characteristics Quarter Ended 12/31/10 Effective Duration Years to Effective Maturity 9.0 15.0

7.70 12.39

6.0 10.0 5.57 5.40 4.98 8.39 8.00 4.54 7.08 6.33 3.0 5.0

0.0 0.0 B W F A C B W F A C

Yield to Effective Maturity Current Yield 6.0 6.0

4.79

4.0 3.90 4.0 4.013.88 3.87 4.03 3.45 3.34 2.97 2.76

2.0 2.0

0.0 0.0 B W F A C B W F A C B BlackRock US Debt Index A Citigroup LPF W Metropolitan West C Barclays Aggregate F Core Fixed Income Composite

5 Tacoma Employees' Retirement System VV Growth of One Dollar BlackRock US Debt Index Quarter Ended 12/31/10

1.10

1.00 Value

0.90 6/10 9/10 12/10

Return $ Legend 2 Quarters Inception 6/30/10 Value Total 1.18 1.18 1.01 Barclays Aggregate 1.15 1.15 1.01

1 Tacoma Employees' Retirement System VV Growth of One Dollar Metropolitan West Quarter Ended 12/31/10

1.90

1.80

1.70

1.60

1.50

1.40 Value 1.30

1.20

1.10

1.00

0.90 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10

Return $ Legend 3 Years Inception 3/31/02 Value Total 8.73 7.26 1.85 Barclays Aggregate + 0.75% 6.66 6.45 1.73

1 Tacoma Employees' Retirement System VV Fixed Income Portfolio Characteristics Metropolitan West vs. Barclays Aggregate 9.0 15.0 Effective Duration Years to Effective Maturity

4.5 7.5

0.0 0.0 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Port 5.66 4.34 6.58 5.30 5.45 4.89 5.91 5.57 Port 10.23 7.66 11.65 8.41 8.19 7.35 8.67 8.39 Index 3.73 4.19 4.43 4.57 4.68 4.30 4.67 4.98 Index 5.73 6.72 6.56 6.84 6.95 6.47 6.58 7.08

9.0 9.0 Yield to Effective Maturity Current Yield

4.5 4.5

0.0 0.0 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Port 6.35 6.00 5.52 4.85 4.40 3.41 3.16 3.45 Port 6.09 5.86 5.57 4.97 4.71 3.97 3.84 3.88 Index 4.06 4.14 3.55 3.68 3.47 2.83 2.56 2.97 Index 5.00 4.83 4.59 4.52 4.38 4.18 4.02 4.03 Portfolio Index Characteristics represent 88% of portfolio's market value. 2 Tacoma Employees' Retirement System VV Fixed Income Structural Characteristics Metropolitan West Quarter Ended 12/31/10

# Maturity Sectors Quarter $(MIL) Bond <1 1-10 10-20 >20 QLTY FIN FOR GA IND MISC MTGETRAN UTL 03/31/02 80.6 17 30.1 55.1 3.1 11.7 AAA 6 0 65 0 16 0 2 11 06/30/02 186.0 43 12.6 67.4 2.0 18.0 AA 24 0 24 3 11 22 1 15 09/30/02 180.9 36 31.1 46.7 2.1 20.1 AA 17 0 18 5 28 18 2 13 12/31/02 178.1 53 25.4 49.6 0.1 24.9 AA 29 0 14 3 19 19 4 12 03/31/03 180.3 46 25.8 58.3 1.5 14.3 A 21 0 14 7 22 12 6 18 06/30/03 190.0 65 22.3 58.0 3.1 16.6 A 17 1 5 14 14 27 6 15 09/30/03 190.3 74 21.2 58.5 1.9 18.3 A 14 1 9 13 14 27 7 14 12/31/03 215.6 80 21.4 57.3 1.3 19.9 A 17 1 18 9 13 19 6 18 03/31/04 217.1 76 31.0 49.7 2.7 16.6 A 12 1 18 9 18 16 7 20 06/30/04 210.8 75 16.1 63.4 2.1 18.3 A 11 2 26 10 7 23 7 14 09/30/04 214.5 73 42.2 41.2 5.6 11.1 AA 11 0 29 6 21 17 6 10 12/31/04 232.9 75 24.1 53.3 10.9 11.7 AA 12 1 33 8 8 21 7 12 03/31/05 229.9 88 15.0 53.6 16.0 15.4 AA 20 1 29 6 7 23 6 8 06/30/05 232.7 90 9.3 65.5 8.6 16.6 AA 19 1 31 5 3 27 6 8 09/30/05 229.5 89 8.8 67.1 10.2 13.8 AA 19 1 33 5 2 26 6 8 12/31/05 227.9 90 6.3 71.7 9.3 12.7 AA 19 1 36 4 3 25 6 7 03/31/06 219.8 86 3.8 73.3 8.8 14.1 AA 19 1 44 3 -4 25 4 9 06/30/06 216.0 86 4.3 73.4 9.2 13.1 AA 21 0 45 1 -4 25 3 9 09/30/06 206.1 87 4.7 71.5 10.6 13.2 AA 29 1 33 0 3 24 3 7 12/31/06 206.5 77 6.5 73.5 9.6 10.4 AA 23 1 41 0 5 23 2 5 03/31/07 205.4 77 3.9 73.7 9.3 13.2 AA 25 1 46 1 4 17 2 5 06/30/07 224.4 78 3.2 76.6 9.5 10.7 AAA 19 0 57 1 2 15 2 3 09/30/07 225.4 91 8.5 62.4 8.7 20.5 AAA 16 0 43 0 18 18 2 3 12/31/07 226.7 90 12.6 60.4 11.6 15.4 AA 15 0 39 0 15 25 2 2 Barclays Aggregate 15,133,900.0 7,999 0.0 87.8 4.7 7.6 AAA 7 2 43 10 0 35 0 2

Characteristics represent 88% of portfolio's market value. 3 Tacoma Employees' Retirement System VV Fixed Income Structural Characteristics Metropolitan West Quarter Ended 12/31/10

# Maturity Sectors Quarter $(MIL) Bond <1 1-10 10-20 >20 QLTY FIN FOR GA IND MISC MTGETRAN UTL 03/31/08 224.2 117 7.3 60.7 13.7 18.4 AA 15 0 19 1 26 33 2 3 06/30/08 215.4 128 13.3 62.4 10.0 14.3 AA 16 0 16 3 22 42 1 1 09/30/08 205.7 133 15.1 66.4 7.7 10.8 AA 15 0 9 3 18 53 1 1 12/31/08 197.4 123 -6.3 83.4 8.9 14.0 AA 22 0 4 4 -5 71 2 1 03/31/09 185.1 149 -4.3 75.3 7.7 21.3 AA 20 0 4 5 9 58 2 3 06/30/09 182.7 128 4.4 80.0 7.3 8.3 AA 26 0 5 7 3 54 2 4 09/30/09 208.8 144 9.7 54.7 10.3 25.2 AA 27 0 4 8 10 49 0 3 12/31/09 227.8 151 8.6 68.7 11.6 11.1 AA 25 0 13 8 8 44 1 2 03/31/10 236.0 125 6.1 72.2 11.9 9.8 AA 23 0 24 7 4 41 1 0 06/30/10 243.8 137 13.2 67.2 9.7 9.9 AA 20 0 32 7 8 32 1 0 09/30/10 250.1 174 8.5 62.1 8.9 20.5 AA 32 0 31 7 -6 34 1 0 12/31/10 248.7 189 -0.4 71.5 11.2 17.8 AA 35 0 32 7 -12 36 2 0

Barclays Aggregate 15,133,900.0 7,999 0.0 87.8 4.7 7.6 AAA 7 2 43 10 0 35 0 2

Characteristics represent 88% of portfolio's market value. 4 Tacoma Employees' Retirement System VV Fixed Income Return Versus Duration Compared to Barclays Aggregate Quarter Ended 12/31/10 0.2

0.0 n

-0.2

-0.4 W

-0.6 Return -0.8

-1.0

-1.2 a -1.4 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Duration

Description Legend Duration Total Return Metropolitan West W 5.57 -0.39 91-Day Treasury Bill n 0.25 0.04 Barclays Aggregate a 4.98 -1.30

5 Tacoma Employees' Retirement System VV Fixed Income Return Analysis Metropolitan West Quarter Ended 12/31/10

Net Management Effect Barclays Total Interest Rate Quarter Aggregate Return Anticipation Sector/Issue Trading Total 06/02 3.70 -0.78 -0.10 -2.87 -1.50 -4.48 09/02 4.59 -0.74 0.36 -4.78 -0.90 -5.32 12/02 1.57 3.43 0.10 4.90 -3.15 1.86

03/03 1.40 2.45 0.35 4.03 -3.33 1.06 06/03 2.50 6.19 0.10 10.46 -6.87 3.69 09/03 -0.15 1.42 -0.01 3.05 -1.47 1.57 12/03 0.32 3.05 -0.00 3.80 -1.07 2.73 2003 4.11 13.70 0.44 22.92 -12.24 9.59 03/04 2.65 2.11 -0.13 -1.07 0.66 -0.54 06/04 -2.44 -1.61 0.40 -0.20 0.63 0.82 09/04 3.20 3.15 0.05 0.98 -1.07 -0.04 12/04 0.95 1.90 -0.11 2.04 -0.99 0.95 2004 4.34 5.60 0.20 1.74 -0.78 1.26 03/05 -0.47 -0.08 0.05 0.27 0.07 0.40 06/05 3.01 2.47 0.26 -0.38 -0.42 -0.54 09/05 -0.68 -0.15 -0.12 0.53 0.11 0.53 12/05 0.59 0.55 -0.02 -0.09 0.07 -0.04 2005 2.43 2.80 0.18 0.33 -0.17 0.37 03/06 -0.64 0.04 0.00 0.46 0.22 0.69 06/06 -0.08 0.23 -0.07 0.28 0.10 0.31 09/06 3.81 3.91 0.11 0.12 -0.13 0.10 12/06 1.24 2.30 -0.00 0.35 0.71 1.06 2006 4.33 6.59 0.05 1.22 0.90 2.26

6 Tacoma Employees' Retirement System VV Fixed Income Return Analysis Metropolitan West Quarter Ended 12/31/10

Net Management Effect Barclays Total Interest Rate Quarter Aggregate Return Anticipation Sector/Issue Trading Total 03/07 1.50 1.56 0.02 -0.04 0.08 0.06 06/07 -0.52 -0.36 -0.18 0.00 0.34 0.16 09/07 2.85 2.87 0.16 0.22 -0.36 0.02 12/07 3.00 2.97 0.47 -0.84 0.33 -0.03 2007 6.96 7.18 0.47 -0.66 0.40 0.22 03/08 2.17 2.00 0.35 -0.88 0.35 -0.17 06/08 -1.02 -1.20 -0.21 0.24 -0.21 -0.18 09/08 -0.48 -1.59 -0.17 -0.49 -0.46 -1.11 12/08 4.57 -0.63 0.10 -3.37 -1.94 -5.20 2008 5.24 -1.46 0.07 -4.46 -2.25 -6.70 03/09 0.12 0.54 0.01 1.71 -1.30 0.43 06/09 1.79 5.39 0.90 4.21 -1.51 3.60 09/09 3.74 7.47 0.13 3.06 0.53 3.73 12/09 0.20 2.68 0.08 2.37 0.03 2.48 2009 5.93 16.93 1.13 11.84 -2.25 11.00 03/10 1.78 4.34 0.28 1.73 0.54 2.55 06/10 3.49 4.05 0.57 0.00 -0.01 0.56 09/10 2.48 3.15 0.34 0.21 0.13 0.68 12/10 -1.30 -0.39 -0.36 1.66 -0.40 0.91 2010 6.54 11.55 0.83 3.64 0.26 5.00

From Inception 5.70 7.26 0.42 3.54 -2.41 1.56

7 Tacoma Employees' Retirement System VV Fixed Income Portfolio Activity Metropolitan West Quarter Ended 12/31/10

Additions Deletions Security Name Coupon Maturity Quantity $(000) New Security Name Coupon Maturity Quantity $(000) Elim 2533a-Z 5.50 12/15/32 38 41 Afs0202-A7 5.72 7/15/33 4 4 Goldman Sachs Group 6.15 4/01/18 400 440 Aegis Asset Backed S 0.91 12/25/34 15 14 United States Treas 0.00 2/10/11 25 25 Aegis Asset Backed S 0.80 3/25/35 41 40 United States Treas 2.38 1/15/25 2,134 2,375 American Home Mortga 5.29 12/25/35 113 83 United States Treas 3.50 1/15/11 1,260 1,262 Banc of America Comm 6.19 6/11/35 7 7 United States Treas 2.00 1/15/16 1,078 1,174 Alternative Loan Tru 5.59 10/25/35 39 30 Bear Stearns Arm Tru 3.87 4/25/34 306 272 * Alternative Loan- 0.59 11/20/35 57 35 California St Go Bds 7.60 11/01/40 500 524 * Citigroup Inc Glbl S 6.00 8/15/17 300 325 Credit Suisse First 5.60 7/15/35 1,045 1,095 * Citigroup Inc Sr Nt 6.88 3/05/38 350 388 Fhlm Pool J13884 3.50 1/15/26 2,505 2,533 * Credit Suisse First 2.82 10/25/33 20 17 Federal Home Loan Ba 0.60 6/04/12 2,695 2,695 * Fhlm Pool G01673 5.50 4/15/34 12 13 3345b-Pf 0.43 5/15/36 1,201 1,197 * Fhlm Pool A72860 6.00 2/15/38 1,923 2,063 * 3345c-Fp 0.45 11/15/36 1,210 1,206 * Fhlm Pool G12399 6.00 9/15/21 123 134 Federal Natl Mtg Ass 0.62 4/14/14 2,510 2,497 * Fhgld Pool #g02884 6.00 4/15/37 102 111 FNMA Pool #ad0791 4.44 2/25/20 1,141 1,207 * Fhlm Pool G04079 5.50 3/15/38 146 156 FNMA Pool Ae0600 3.97 11/25/20 1,209 1,211 * Fhgld Pool #g04711 6.00 9/15/38 1,143 1,226 * FNMA Pool Ae0605 4.67 7/25/20 1,159 1,210 * Fhgld Pool #g05119 6.50 9/15/38 1,752 1,910 * Gmac Commercial Mort 5.71 10/15/38 1,185 1,233 * Fhlm Pool G05716 4.50 4/15/39 65 67 G10-116j-Mp 3.50 9/16/40 3,568 3,561 * Fhlm Pool G05866 4.50 2/15/40 26 26 Health Care Reit Inc 4.95 1/15/21 1,000 964 * Fhgld Pool #g13475 6.00 1/15/24 110 120 Illinois St Go Bds 7.35 7/01/35 600 588 * Fhlm Pool H03161 6.50 9/15/37 219 243 Ncua Guaranteed Note 0.62 11/06/17 2,711 2,710 * Fhgld Pool #e01252 6.00 11/15/17 22 24 Ncua Guaranteed Note 0.72 11/05/20 1,374 1,365 * Fhgld Pool #a14189 4.00 10/15/33 4 4 Ncua Guaranteed Note 0.70 10/07/20 2,679 2,675 * Fhgld Pool #a24156 6.50 10/15/31 14 16 Purchase Turnover Sales Turnover

8 Tacoma Employees' Retirement System VV Fixed Income Portfolio Activity Metropolitan West Quarter Ended 12/31/10

Additions Deletions Security Name Coupon Maturity Quantity $(000) New Security Name Coupon Maturity Quantity $(000) Elim Ncua Guaranteed Note 0.82 12/08/20 1,260 1,258 * Fhgld Pool #a33262 5.50 2/15/35 19 20 Ncua Guaranteed Note 0.82 12/08/20 1,060 1,060 * Fhgld Pool #c46104 6.50 9/15/29 4 4 Ncua Guaranteed Note 2.90 10/29/20 1,260 1,225 * Federal Home Loan Ba 0.75 10/05/11 3,165 3,165 * Citigroup Mortgage L 0.94 11/25/33 1,728 1,509 * Federal Natl Mtg Ass 0.00 10/18/10 5,905 5,905 * Structured Asset Sec 2.65 11/25/33 1,248 1,218 * FNMA Pool #254232 6.50 3/25/22 24 26 United States Treas 4.38 5/15/40 3,050 3,065 * FNMA Pool #323715 6.00 5/25/29 5 6 United States Tr Nt 3.38 1/15/12 2,131 2,228 * FNMA Pool #394854 6.50 5/25/27 6 7 United States Treas 3.00 9/30/16 4,305 4,465 * FNMA Pool 555284 7.50 10/25/17 0 0 United States Treas 3.38 11/15/19 4,985 5,089 * FNMA Pool #555177 4.86 1/25/33 14 14 United States Treas 3.62 2/15/20 3,095 3,212 * FNMA Pool #633698 7.50 2/25/31 4 5 United States Treas 1.88 8/31/17 1,370 1,308 * FNMA Pool #655928 7.00 8/25/32 19 22 United States Treas 1.25 10/31/15 2,800 2,710 * FNMA Pool 725027 5.00 11/25/33 217 229 FNMA Pool #734922 4.50 9/25/33 134 138 FNMA Pool #735207 7.00 4/25/34 8 9 FNMA Pool 735883 6.00 3/25/33 97 105 FNMA Pool #844773 5.20 12/25/35 50 54 GNMA I Pool 782818 4.50 11/15/39 44 45 Genl Elec Cap Corp F 2.63 12/28/12 1,185 1,236 * Genl Elec Cap Corp F 2.00 9/28/12 2,400 2,466 * Goldman Sachs Grp In 7.50 2/15/19 750 874 Goldman Sachs Group 5.13 1/15/15 600 650 * Grntrhe1999-2-A-5 6.68 12/01/30 107 109 Hsbc0703-Apt 1.46 11/25/36 52 48 Ixis Real Estate Cap 0.75 6/25/35 54 52 Purchase Turnover Sales Turnover

9 Tacoma Employees' Retirement System VV Fixed Income Portfolio Activity Metropolitan West Quarter Ended 12/31/10

Additions Deletions Security Name Coupon Maturity Quantity $(000) New Security Name Coupon Maturity Quantity $(000) Elim Indymac Indx Mortgag 5.52 10/25/34 21 19 Jp Morgan Mortgage T 5.03 6/25/35 505 499 Jp Morgan Mortgage T 5.36 8/25/35 427 428 Mastr 2002-8 1a1 5.50 12/25/17 58 59 Nationstar Home Equi 0.39 6/25/37 1,475 1,110 * M-1 0.98 1/25/34 43 37 Opteum Mortgage Acce 0.53 7/25/36 40 18 Origen Manufactured 0.41 11/15/18 18 17 Ramp Series Trust 6.50 12/25/31 88 87 M-1 0.79 3/25/35 111 91 Soundview Home Loan 0.56 11/25/35 30 29 Soundview Home Loan 0.37 10/25/36 41 40 Structured Asset Mor 2.84 8/25/47 17 10 United States Treas 4.25 5/15/39 1,130 1,242 * United States Treas 2.13 2/15/40 2,022 2,260 * United States Treas 0.88 4/30/11 1,000 1,002 United States Treas 2.38 3/31/16 7,110 7,455 * United States Treas 1.00 8/31/11 1,000 1,005 United States Treas 1.88 6/30/15 7,165 7,383 * United States Treas 1.75 7/31/15 5,460 5,591 * United States Treas 1.25 9/30/15 2,100 2,097 * Vmh0201-A4 6.57 5/07/27 60 63 Washington Mutual Mo 0.58 5/25/37 31 15 Wells Fargo Asset Se 4.49 11/25/33 148 152 Purchase Turnover Sales Turnover

10 Tacoma Employees' Retirement System VV Fixed Income Portfolio Activity Metropolitan West Quarter Ended 12/31/10

Additions Deletions Security Name Coupon Maturity Quantity $(000) New Security Name Coupon Maturity Quantity $(000) Elim Wells Fargo Home Equ 0.41 5/25/36 53 52 Cash Equivalents 0.00 1/01/11 14,943 14,943

Purchase Turnover Sales Turnover

11 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Asset Backed Ncua Guaranteed Note 0.62 11/06/17 0 2,711 Aaa AAA 11/08/12 0.18 0.64 2,710 1.25 NA Mastr 2002-8 1a1 5.50 12/25/17 515 458 Aaa AAA 12/25/17 5.90 4.99 472 0.22 0.63 Origen Manufactured 0.41 11/15/18 224 206 B2 BB+ 11/15/18 7.78 0.82 199 0.09 0.66 Ncua Guaranteed Note 0.70 10/07/20 0 2,679 Aaa AAA 2/04/13 0.10 0.77 2,675 1.24 NA Ncua Guaranteed Note 0.72 11/05/20 0 1,374 Aaa AAA 8/08/13 0.18 0.97 1,365 0.63 NA Ncua Guaranteed Note 0.82 12/08/20 0 1,060 Aaa NR 1/06/17 5.75 0.83 1,060 0.49 NA Ncua Guaranteed Note 0.82 12/08/20 0 1,260 Aaa NR 6/06/15 4.19 0.85 1,258 0.58 NA Astoria Power Pro-B 8.14 5/01/21 1,200 1,200 NR NR 12/01/16 4.44 8.28 1,200 0.55 2.83 Vmh0201-A4 6.57 5/07/27 1,560 1,500 Aaa AAA 5/07/27 10.43 5.99 1,592 0.74 -0.84 Cwabs Asset-Backed C 0.42 6/25/30 1,350 1,350 B3 BB- 6/25/30 20.04 0.84 1,164 0.54 5.23 Grntrhe1999-2-A-5 6.68 12/01/30 1,576 1,469 Aaa B- 12/01/30 11.34 6.54 1,494 0.69 1.33 Cwabs Asset-Backed C 0.43 9/25/31 2,080 2,080 Caa1 BB+ 9/25/31 23.44 0.86 1,614 0.75 -3.77 J.P. Morgan Mortgage 0.37 10/25/32 2,250 2,250 B2 CCC 10/25/32 25.70 0.74 1,696 0.78 3.41 Afs0202-A7 5.72 7/15/33 8 4 Aaa AAA 7/15/33 12.94 5.72 4 0.00 1.46 Citigroup Mortgage L 0.94 11/25/33 0 1,728 Aaa AAA 7/25/17 -0.56 3.21 1,509 0.70 NA M-1 0.98 1/25/34 1,713 1,671 Aa2 AA 1/25/34 20.49 1.64 1,459 0.67 4.46 Wells Fargo Mortgage 4.77 6/25/34 3,400 3,400 Aaa AAA 6/25/34 14.53 4.52 3,524 1.63 2.64 Aegis Asset Backed S 0.91 12/25/34 1,037 1,023 A1 AA 12/25/34 21.49 1.23 956 0.44 -0.37 Aegis Asset Backed S 0.80 3/25/35 993 952 Aa2 AA 3/25/35 22.04 0.92 928 0.43 0.17 M-1 0.79 3/25/35 1,656 1,545 Aa2 AA+ 3/25/35 22.47 1.58 1,264 0.58 -0.04 Ixis Real Estate Cap 0.75 6/25/35 719 665 Aa1 AA 6/25/35 22.34 0.99 631 0.29 0.56 Soundview Home Loan 0.56 11/25/35 1,021 991 NR AAA 11/25/35 23.22 0.78 942 0.44 0.11

12 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Asset Backed (cont.) American Home Mortga 5.29 12/25/35 2,375 2,262 NR CCC 12/25/35 12.23 7.78 1,648 0.76 4.30 Wells Fargo Home Equ 0.41 5/25/36 502 449 A1 AAA 5/25/36 24.13 0.46 443 0.20 1.75 Soundview Home Loan 0.37 10/25/36 291 249 Baa2 BB 10/25/36 24.63 0.44 245 0.11 0.57 Hsbc0703-Apt 1.46 11/25/36 1,026 974 Aa2 AAA 9/25/22 12.96 2.25 899 0.42 1.82 Nationstar Home Equi 0.49 3/25/37 1,365 1,365 Ca AAA 3/25/37 34.81 0.98 852 0.39 5.11 Washington Mutual Mo 0.58 5/25/37 1,269 1,238 Ca CC 5/25/37 43.23 1.16 605 0.28 9.91 Nationstar Home Equi 0.39 6/25/37 1,475 0 Caa2 AAA 6/25/37 30.54 0.77 0 0.00 6.64 G10-116j-Mp 3.50 9/16/40 0 3,568 NR NR 6/16/15 3.14 3.54 3,561 1.65 NA 37,968 17.56 Finance Countrywide Home Loa 4.00 3/22/11 350 350 A2 A 3/22/11 0.22 0.75 353 0.16 0.15 Goldman Sachs Group 0.47 2/06/12 750 750 A1 A 2/06/12 0.16 0.56 749 0.35 0.62 Fairfax Finl Hldgs L 7.75 4/26/12 800 800 Ba1 BBB- 4/26/12 1.24 4.40 834 0.39 1.27 Countrywide Finl Cor 5.80 6/07/12 300 300 A2 A 6/07/12 1.38 2.09 316 0.15 0.42 Genl Elec Cap Corp F 2.00 9/28/12 2,400 0 Aaa AAA 9/28/12 1.96 0.61 0 0.00 -0.10 Genl Elec Cap Corp F 2.63 12/28/12 1,185 0 Aaa AAA 12/28/12 2.17 0.71 0 0.00 0.11 Duke Rlty Ltd Partne 6.25 5/15/13 550 550 Baa2 BBB- 5/15/13 2.20 2.97 591 0.27 0.77 Cs First Boston Ny B 5.00 5/15/13 550 550 Aa1 A+ 5/15/13 2.24 1.70 592 0.27 -0.05 Deutsche Bk Ag Sr Nt 4.88 5/20/13 500 500 Aa3 A+ 5/20/13 2.25 1.77 536 0.25 -0.16 National Australia B 5.35 6/12/13 1,000 1,000 Aa1 AA 6/12/13 2.31 1.70 1,087 0.50 0.18 Morgan Stanley Sr Nt 6.00 5/13/14 800 800 A2 A 5/13/14 3.03 3.45 864 0.40 -0.20 Farmers Ins Exchange 6.00 8/01/14 495 495 Baa2 BBB+ 8/01/14 3.14 4.20 524 0.24 2.16

13 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Finance (cont.) Citigroup Inc Sr Nt 6.38 8/12/14 750 750 A3 A 8/12/14 3.18 3.26 829 0.38 0.98 Morgan Stanley Sr Nt 4.20 11/20/14 340 340 A2 A 11/20/14 3.55 3.60 347 0.16 -0.43 Gmac Inc Sr Nt Flt 1 2.50 12/01/14 838 838 B3 B 12/01/14 0.02 4.44 781 0.36 4.89 Goldman Sachs Group 0.79 1/12/15 300 300 A1 A 1/12/15 -0.04 1.62 290 0.13 1.25 Goldman Sachs Group 5.13 1/15/15 600 0 A1 A 1/15/15 3.83 3.06 0 0.00 0.44 Goldman Sachs Grp In 0.69 7/22/15 300 300 A1 A 7/22/15 -0.03 1.62 288 0.13 2.12 Royal Bk Scotland Pl 3.95 9/21/15 1,200 1,200 Aa3 A+ 9/21/15 4.21 4.35 1,180 0.55 -1.73 Morgan Stanley Nt Fl 0.77 10/15/15 910 910 A2 A 10/15/15 -0.12 2.13 854 0.39 2.42 Health Care Ppty Inv 6.30 9/15/16 700 700 Baa3 BBB 9/15/16 4.70 4.74 754 0.35 0.64 Morgan Stanley Fr 5. 5.45 1/09/17 200 200 A2 A 1/09/17 4.97 4.74 207 0.10 -0.36 Health Care Ppty Inv 6.00 1/30/17 1,000 1,000 Baa3 BBB 1/30/17 4.94 5.11 1,046 0.48 -0.60 Natl City Bk Cleve S 0.67 6/07/17 1,200 1,200 A3 A 6/07/17 -0.15 2.34 1,081 0.50 0.47 Citigroup Inc Glbl S 6.00 8/15/17 650 350 A3 A 8/15/17 5.35 4.51 380 0.18 1.78 Bear Stearns Cos Inc 7.25 2/01/18 1,315 1,315 Aa3 A+ 2/01/18 5.50 4.20 1,558 0.72 -1.21 Credit Suisse Ny Brh 6.00 2/15/18 833 833 Aa2 A 2/15/18 5.66 4.79 893 0.41 -1.53 Goldman Sachs Group 6.15 4/01/18 500 900 A1 A 4/01/18 5.78 4.50 991 0.46 0.68 Highwoods Rlty L P N 7.50 4/15/18 917 917 Baa3 BBB- 4/15/18 5.56 5.54 1,023 0.47 1.36 Wea Fin Llc Sr Nt 14 7.13 4/15/18 1,100 1,100 A2 A- 4/15/18 5.68 4.64 1,267 0.59 -0.66 Merrill Lynch Co Inc 6.88 4/25/18 1,000 1,000 A2 A 4/25/18 5.68 5.30 1,094 0.51 -0.89 General Elec Cap Cor 5.63 5/01/18 720 720 Aa2 AA+ 5/01/18 5.96 4.18 785 0.36 -0.47 Citigroup Inc Sr Nt 6.13 5/15/18 700 700 A3 A 5/15/18 5.89 4.58 767 0.35 1.83 Hbos Plc Medium Tm S 6.75 5/21/18 1,600 1,600 Baa3 BBB- 5/21/18 5.57 7.91 1,498 0.69 -5.29

14 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Finance (cont.) Goldman Sachs Grp In 7.50 2/15/19 1,050 300 A1 A 2/15/19 6.03 4.99 350 0.16 -0.40 Banc One Corp Sub Nt 8.53 3/01/19 2,320 2,320 A1 A 3/01/19 5.83 5.96 2,702 1.25 -3.63 Bank Amer Fdg Corp S 5.63 7/01/20 500 500 A2 A 7/01/20 7.02 5.36 510 0.24 -2.18 Morgan Stanley Sr Nt 5.50 7/24/20 675 675 A2 A 7/24/20 7.12 5.36 682 0.32 -0.59 Health Care Reit Inc 4.95 1/15/21 0 1,000 Baa2 BBB- 1/15/21 7.65 5.42 964 0.45 NA Prudential Hldgs Llc 8.70 12/18/23 1,000 1,000 Baa1 A+ 12/18/23 7.95 6.49 1,191 0.55 -4.27 Metropolitan Life I 7.80 11/01/25 1,000 1,000 A2 A 11/01/25 8.80 6.15 1,159 0.54 -0.91 Farmers Exchange Ca 7.05 7/15/28 1,304 1,304 Baa2 BBB+ 7/15/28 9.32 7.40 1,260 0.58 -0.42 Security Benefit Lif 7.45 10/01/33 1,482 1,482 Ba2 BBB- 10/01/33 9.35 8.66 1,304 0.60 5.13 Nationwide Mut Ins C 6.60 4/15/34 1,603 1,603 A3 A- 10/15/24 7.95 8.15 1,398 0.65 -0.40 Citigroup Inc Glbl S 0.83 8/25/36 1,000 1,000 Baa1 A- 8/25/36 -4.96 2.78 645 0.30 1.48 Citigroup Inc Sr Nt 6.88 3/05/38 700 350 A3 A 3/05/38 11.97 6.05 388 0.18 0.87 36,913 17.07 Government & Agency Federal Natl Mtg Ass 0.00 10/18/10 5,905 0 Aaa NR NA 0.05 0.00 0 0.00 NA United States Treas 3.50 1/15/11 1,221 2,482 GOV AAA 1/15/11 0.04 0.26 2,484 1.15 0.09 United States Treas 0.00 2/10/11 155 180 GOV AAA 2/10/11 0.11 0.09 180 0.08 0.04 United States Treas 0.88 4/30/11 8,545 7,545 GOV AAA 4/30/11 0.33 0.19 7,562 3.50 0.07 United States Treas 1.00 8/31/11 9,540 8,540 GOV AAA 8/31/11 0.66 0.24 8,583 3.97 0.09 Federal Home Loan Ba 0.75 10/05/11 3,165 0 Aaa AAA NA 0.01 0.75 0 0.00 NA United States Tr Nt 3.38 1/15/12 0 2,131 GOV AAA 1/15/12 1.02 0.35 2,228 1.03 NA Federal Home Loan Ba 0.60 6/04/12 0 2,695 Aaa AAA 6/04/11 0.65 0.60 2,695 1.25 NA

15 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Government & Agency (cont.) Morgan Stanley Fdic 0.65 6/20/12 1,270 1,270 Aaa AAA 6/20/12 0.23 0.26 1,277 0.59 0.12 Federal Natl Mtg Ass 0.28 8/23/12 2,490 2,490 Aaa AAA 8/23/12 0.22 0.30 2,489 1.15 0.09 Federal Home Loan Ba 0.75 3/28/13 1,870 1,870 Aaa AAA 3/28/11 0.25 0.33 1,872 0.87 0.13 Federal Home Ln Mtg 0.50 9/16/13 1,860 1,860 Aaa AAA 3/16/11 1.21 0.59 1,860 0.86 0.16 Federal Natl Mtg Ass 0.63 4/14/14 0 2,510 Aaa AAA 10/14/12 1.96 1.54 2,497 1.15 NA United States Treas 1.88 6/30/15 7,165 0 GOV AAA 6/30/15 4.52 1.21 0 0.00 -2.11 United States Treas 1.75 7/31/15 5,460 0 GOV AAA 7/31/15 4.62 1.24 0 0.00 -2.23 United States Treas 1.25 9/30/15 2,100 0 GOV NR 9/30/15 4.83 1.28 0 0.00 -2.51 United States Treas 1.25 10/31/15 0 2,800 GOV AAA 10/31/15 4.64 1.95 2,710 1.25 NA United States Treas 2.00 1/15/16 1,171 2,249 GOV AAA 1/15/16 4.74 2.05 2,449 1.13 -0.18 United States Treas 2.38 3/31/16 7,110 0 GOV AAA 3/31/16 5.15 1.45 0 0.00 -2.85 United States Treas 3.00 9/30/16 0 4,305 GOV AAA 9/30/16 5.22 2.31 4,465 2.06 NA United States Treas 1.88 8/31/17 0 1,370 GOV AAA 8/31/17 6.15 2.62 1,308 0.60 NA United States Treas 3.38 11/15/19 0 4,985 GOV AAA 11/15/19 7.56 3.10 5,089 2.35 NA United States Treas 3.63 2/15/20 0 3,095 GOV AAA 2/15/20 7.60 3.14 3,212 1.49 NA FNMA Pool #ad0791 4.44 2/25/20 0 1,141 Aaa AAA 9/25/15 4.12 3.05 1,207 0.56 NA FNMA Pool Ae0605 4.67 7/25/20 0 1,159 Aaa AAA 11/25/15 4.17 3.61 1,210 0.56 NA FNMA Pool Ae0600 3.97 11/25/20 0 1,209 Aaa AAA 2/25/16 4.40 3.90 1,211 0.56 NA United States Treas 8.00 11/15/21 1,650 1,650 GOV AAA 11/15/21 7.73 3.41 2,334 1.08 -4.88 United States Treas 2.38 1/15/25 3,389 5,523 GOV AAA 1/15/25 5.83 4.03 6,146 2.84 -2.71 United States Treas 4.25 5/15/39 1,130 0 GOV AAA 5/15/39 16.05 3.68 0 0.00 -9.41 United States Treas 2.13 2/15/40 2,022 0 GOV AAA 2/15/40 21.39 3.90 0 0.00 -4.80

16 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Government & Agency (cont.) United States Treas 4.38 5/15/40 0 3,050 GOV AAA 5/15/40 15.60 4.35 3,065 1.42 NA 68,132 31.50 Industrial Aquila Inc Sr Credit 11.88 7/01/12 605 605 Baa3 BBB 7/01/12 1.34 2.68 686 0.32 1.18 Centerpoint Energy R 7.88 4/01/13 925 925 Baa3 BBB 4/01/13 2.06 1.92 1,046 0.48 -0.10 General Elec Cap Cor 1.18 5/22/13 275 275 Aa2 AA+ 5/22/13 0.14 1.15 275 0.13 0.44 Cedar Brakes Ii L L 9.88 9/01/13 877 877 Baa3 BBB- 9/01/13 2.27 7.09 935 0.43 4.57 Sabine Pass Lng L P 7.25 11/30/13 1,030 1,030 B3 B+ 11/30/13 2.55 8.33 1,002 0.46 2.68 Qwest Communications 7.50 2/15/14 525 525 Ba2 B+ 2/15/14 2.67 7.04 532 0.25 1.12 General Elec Cap Cor 5.90 5/13/14 450 450 Aa2 AA+ 5/13/14 3.06 2.57 498 0.23 -0.96 General Elec Cap Cor 0.56 9/15/14 1,000 1,000 Aa2 AA+ 9/15/14 0.17 1.38 971 0.45 1.40 Sabine Pass Lng L P 7.50 11/30/16 350 350 B3 B+ 11/30/16 4.59 8.88 328 0.15 4.82 Hca Inc Sr Secd Nt8. 8.50 4/15/19 1,070 1,070 Ba3 BB 4/15/19 5.85 6.97 1,172 0.54 0.13 Valero Energy Corp N 6.13 2/01/20 850 850 Baa2 BBB 2/01/20 6.74 5.26 903 0.42 -1.13 Indiantown Cogenerat 9.77 12/15/20 540 540 Ba1 BB+ 12/15/20 6.30 8.50 585 0.27 -0.20 Williams Cos Inc Del 7.88 9/01/21 1,016 1,016 Baa3 BB+ 9/01/21 7.19 5.60 1,199 0.55 -1.15 General Elec Cap Cor 0.67 5/05/26 700 700 Aa2 AA+ 5/05/26 -1.42 1.96 581 0.27 6.56 Southern Un Co New S 8.25 11/15/29 500 500 Baa3 BBB- 11/15/29 9.29 7.45 540 0.25 -5.18 Williams Cos Inc Del 7.75 6/15/31 400 400 Baa3 BB+ 6/15/31 10.24 6.60 451 0.21 0.44 General Elec Cap Cor 6.88 1/10/39 400 400 Aa2 AA+ 1/10/39 12.27 5.75 462 0.21 2.15 Ralcorp Hldgs Inc Ne 6.63 8/15/39 1,645 1,645 Baa3 BBB- 8/15/39 11.94 6.35 1,704 0.79 -3.12 Southern Un Co New J 7.20 11/01/66 1,000 1,000 Ba1 BB 11/01/36 -1.08 7.92 921 0.43 4.09

17 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Industrial (cont.) 14,791 6.84 Miscellaneous Cash Equivalents 0.00 1/01/11 -14,900 -29,843 Aaa AAA 1/01/11 0.00 0.00 -29,843 -13.80 0.00 Bac Cap Tr Xv Gtd Ca 1.34 6/01/56 2,500 2,500 Baa3 BB+ 9/01/40 19.84 3.34 1,563 0.72 -0.98 -28,279 -13.08 Mortgage FNMA Pool 555284 7.50 10/25/17 95 95 Aaa AAA 7/25/14 2.55 3.54 107 0.05 3.07 Fhgld Pool #e01252 6.00 11/15/17 205 183 Agy AGY 2/15/13 1.87 1.69 199 0.09 2.21 Ncua Guaranteed Note 2.90 10/29/20 0 1,260 NR AAA 2/01/16 4.65 3.52 1,225 0.57 NA Fhlm Pool G12399 6.00 9/15/21 1,202 1,079 Aaa AAA 6/15/13 1.93 2.00 1,179 0.55 1.99 FNMA Pool #254232 6.50 3/25/22 319 295 Agy AGY 7/25/13 2.16 1.99 327 0.15 2.52 Fhgld Pool #g13475 6.00 1/15/24 1,205 1,095 Aaa AAA 7/15/13 2.00 2.05 1,196 0.55 1.99 Fhlm Pool J13884 3.50 1/15/26 0 2,505 Aaa AAA 8/14/16 4.24 3.21 2,533 1.17 NA FNMA Pool #394854 6.50 5/25/27 183 177 Agy AGY 2/25/14 2.63 2.55 197 0.09 3.38 FNMA Pool #323715 6.00 5/25/29 69 64 Agy AGY 8/25/14 3.02 2.82 70 0.03 3.14 Fhgld Pool #c46104 6.50 9/15/29 133 129 Agy AGY 5/15/14 2.66 2.48 146 0.07 2.75 FNMA Pool #633698 7.50 2/25/31 662 658 Agy AGY 1/25/14 2.48 2.28 754 0.35 2.18 Fhgld Pool #a24156 6.50 10/15/31 267 253 Aaa AAA 1/15/15 3.38 3.04 284 0.13 3.05 Structured Asset 6.00 10/25/31 103 103 NR AAA 10/25/31 11.05 2.92 96 0.04 -0.08 Ramp Series Trust 6.50 12/25/31 582 495 Aaa BB- 2/25/15 3.13 6.79 490 0.23 1.92 FNMA Pool #655928 7.00 8/25/32 592 573 Agy AGY 7/25/13 1.81 1.53 647 0.30 3.09 2533a-Z 5.50 12/15/32 2,769 2,808 Aaa AAA 12/15/32 13.36 4.87 3,044 1.41 -0.56

18 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Mortgage (cont.) FNMA Pool #555177 4.86 1/25/33 383 370 Aaa AAA 6/25/14 1.33 3.16 388 0.18 0.38 FNMA Pool 735883 6.00 3/25/33 1,735 1,638 Aaa AAA 3/25/14 2.59 2.91 1,782 0.82 2.60 FNMA Pool #734922 4.50 9/25/33 2,596 2,462 Aaa AAA 1/25/15 3.43 3.43 2,553 1.18 -1.23 Fhgld Pool #a14189 4.00 10/15/33 543 539 Aaa AAA 11/15/15 4.37 3.87 542 0.25 -1.30 Credit Suisse First 2.82 10/25/33 1,286 1,267 Aa1 AAA 6/25/15 -0.24 6.22 1,113 0.51 -5.15 Structured Asset Sec 2.65 11/25/33 0 1,248 Aaa AAA 2/25/23 0.39 3.93 1,218 0.56 NA FNMA Pool 725027 5.00 11/25/33 2,018 1,801 Aaa AAA 10/25/14 3.00 3.25 1,903 0.88 0.85 Wells Fargo Asset Se 4.49 11/25/33 1,222 1,074 NR AAA 11/25/33 14.65 4.29 1,105 0.51 0.32 2733e-Me 5.00 1/15/34 2,337 2,337 Aaa AAA 4/15/20 7.11 4.64 2,402 1.11 -4.59 Fhlm Pool G01673 5.50 4/15/34 358 346 Aaa AAA 1/15/14 2.42 2.82 371 0.17 1.47 Bear Stearns Arm Tru 3.87 4/25/34 0 306 A2 A+ 8/25/13 -0.14 9.62 272 0.13 NA FNMA Pool #735207 7.00 4/25/34 635 627 Aaa AAA 10/25/13 2.48 2.45 701 0.32 1.96 Indymac Indx Mortgag 5.52 10/25/34 876 855 A1 AAA 2/25/19 -0.23 7.20 777 0.36 -0.24 J P Morgan Mortgage 4.82 12/25/34 3,250 3,250 Aaa AAA 2/25/13 0.13 4.93 3,235 1.50 -0.45 Commercial Mortgage 4.95 1/11/35 1,165 1,165 Aaa AAA 8/11/12 1.51 1.85 1,219 0.56 -0.28 Fhgld Pool #a33262 5.50 2/15/35 587 568 Aaa AAA 10/15/13 2.46 2.67 609 0.28 1.71 Banc of America Comm 6.19 6/11/35 911 904 Aaa AAA 10/11/11 0.78 1.50 936 0.43 0.20 Jp Morgan Mortgage T 5.03 6/25/35 2,686 2,181 Aaa AA- 6/25/35 -0.38 5.15 2,152 1.00 1.41 Credit Suisse First 5.60 7/15/35 0 1,045 Aaa NR 12/16/11 0.96 0.54 1,095 0.51 NA Jp Morgan Mortgage T 5.36 8/25/35 2,055 1,628 NR AAA 10/25/12 0.21 5.05 1,633 0.75 2.22 Alternative Loan Tru 5.59 10/25/35 1,984 1,944 NR CCC 4/25/18 -1.06 11.41 1,470 0.68 1.50 Alternative Loan- 0.59 11/20/35 2,970 2,912 Caa1 CCC 11/20/35 32.95 1.18 1,776 0.82 7.59

19 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Mortgage (cont.) FNMA Pool #844773 5.20 12/25/35 834 784 Aaa AAA 7/25/13 0.95 1.77 846 0.39 2.84 3345b-Pf 0.43 5/15/36 0 1,201 Aaa AAA 10/15/12 0.67 0.64 1,197 0.55 NA Greenwich Captial Co 5.32 6/10/36 1,230 1,230 Aaa AAA 1/10/14 2.77 2.66 1,324 0.61 -0.58 Opteum Mortgage Acce 0.53 7/25/36 1,336 1,296 Caa3 CCC 7/25/36 45.24 1.06 601 0.28 1.56 Sv06opt5-2a4 0.50 7/25/36 1,000 1,000 Caa3 BBB- 6/25/21 21.75 9.13 426 0.20 0.96 3345c-Fp 0.45 11/15/36 0 1,210 Aaa AAA 2/15/13 0.69 0.62 1,206 0.56 NA Soundview Home Loan 0.40 12/25/36 2,000 2,000 Ba3 B 6/25/13 -0.20 7.40 1,710 0.79 1.02 Citicorp Residential 6.05 3/25/37 1,500 1,500 Caa1 AAA 3/25/37 -2.80 8.03 1,193 0.55 -2.62 Fhgld Pool #g02884 6.00 4/15/37 1,816 1,714 Aaa AAA 5/15/13 1.88 2.09 1,862 0.86 2.28 Fhlm Pool H03161 6.50 9/15/37 879 659 Aaa AAA 8/15/13 2.08 1.79 731 0.34 3.27 Fhlm Pool A72860 6.00 2/15/38 1,923 0 Aaa AAA 6/15/12 1.49 1.50 0 0.00 2.43 Fhlm Pool G04079 5.50 3/15/38 2,137 1,990 Aaa AAA 1/15/14 2.45 3.01 2,124 0.98 1.73 Commercial Mortgage 5.88 7/10/38 1,865 1,865 Aaa A+ 3/10/16 4.43 4.10 2,027 0.94 0.57 Fhgld Pool #g05119 6.50 9/15/38 1,752 0 Aaa AAA 4/15/12 1.13 0.52 0 0.00 3.27 Fhgld Pool #g04711 6.00 9/15/38 1,143 0 Aaa AAA 7/15/12 1.56 1.63 0 0.00 2.43 Gmac Commercial Mort 5.71 10/15/38 0 1,185 Aaa AAA 1/15/12 1.03 1.67 1,233 0.57 NA Commercial Mortgage 5.44 3/10/39 1,810 1,810 Aaa A 12/12/16 4.99 4.51 1,899 0.88 0.86 Fhlm Pool G05716 4.50 4/15/39 2,761 2,695 Aaa AAA 1/15/16 4.02 3.93 2,758 1.28 -1.65 GNMA I Pool 782818 4.50 11/15/39 3,106 3,063 Aaa AAA 6/15/18 2.81 3.80 3,190 1.48 -0.83 Credit Suisse Commer 5.31 12/15/39 570 570 Aaa A+ 9/18/16 4.80 4.56 591 0.27 1.03 Fhlm Pool G05866 4.50 2/15/40 1,345 1,319 Aaa AAA 3/15/16 4.14 4.00 1,348 0.62 -0.93 Bear Stearns Commerc 5.17 10/12/42 1,150 1,150 Aaa NR 8/12/15 4.06 3.50 1,234 0.57 -1.75

20 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Mortgage (cont.) Jp Morgan Chase Comm 5.44 6/12/47 2,069 2,069 Aaa A+ 12/12/16 4.97 4.61 2,160 1.00 0.89 Structured Asset Mor 2.84 8/25/47 1,996 1,979 Caa2 CCC 9/25/14 1.94 21.85 1,211 0.56 2.79 Jp Morgan Chase Comm 5.74 2/12/49 640 640 Aa2 A+ 4/12/17 5.12 4.80 675 0.31 -2.42 Morgan Stanley Capit 5.81 12/12/49 1,815 1,815 Aaa A+ 8/14/17 5.37 4.70 1,930 0.89 1.85 Ml-Cfc Commercial Mo 5.17 12/12/49 1,290 1,290 Aaa AA- 7/12/16 4.67 4.54 1,330 0.61 0.80 Jp Morgan Chase Comm 5.88 2/15/51 550 550 Aaa A- 6/15/17 5.26 4.91 580 0.27 1.92 Morgan Stanley ABS C 5.16 10/12/52 1,600 1,600 Aaa AAA 9/12/15 4.13 3.70 1,701 0.79 -1.01 78,835 36.45 Municipals Illinois St Go Bds 7.35 7/01/35 0 600 NR A+ 1/01/29 8.77 7.56 588 0.27 NA California St Go Bds 7.30 10/01/39 685 685 A1 A- 4/01/37 10.35 7.24 690 0.32 -3.11 California St Go Bds 7.60 11/01/40 0 500 NR A- 11/01/40 10.76 7.21 524 0.24 NA 1,801 0.83 Transportation Northwest Airlines 6.84 10/01/12 550 550 Ba3 BBB- 10/01/12 1.60 6.07 557 0.26 0.71 Delta Air Lines Pass 7.11 3/18/13 1,210 1,210 Ba2 BBB- 9/18/11 0.69 1.80 1,255 0.58 1.00 Jetblue Airways Corp 0.72 3/15/14 1,220 1,220 B1 BB+ 3/15/14 0.32 0.72 1,220 0.56 -1.06 Continental Airlines 6.55 8/02/20 475 475 Baa2 BBB+ 2/02/15 3.24 4.79 503 0.23 3.27 Continental Airlines 7.26 9/15/21 1,438 1,438 Baa2 BBB+ 3/15/17 4.55 5.50 1,561 0.72 5.33 5,096 2.36 Utilities Texas New Mexico Pwr 9.40 4/01/19 800 800 Baa1 BBB- 4/01/19 5.88 5.25 1,020 0.47 -1.37

21 Tacoma Employees' Retirement System VV Fixed Income Holdings Metropolitan West Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Utilities (cont.) 1,020 0.47

Total Portfolio 0.01

22 Tacoma Employees' Retirement System VV Fund Return Table Quarter Ended 12/31/10

Since Inception Inception Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years 12/31/00 Date Return Post Advisory Group 2.51 8.45 8.91 12.44 7.68 7.15 9/30/05 7.03 Policy Index 2.40 9.30 9.64 14.26 9.83 8.64 9/30/05 8.34 Performance Objective 2.84 10.17 10.95 16.01 11.58 10.39 9/30/05 10.09

High Yield Composite 2.51 8.45 8.91 12.44 7.68 7.15 9/30/05 7.03 Policy Index 2.40 9.30 9.64 14.26 9.83 8.64 9/30/05 8.34

Indices Since ML US High Yld. BB/B Const. 2.40 9.30 9.64 14.26 8.57 7.61 7.95 9/30/05 7.44 ML High Yld II Tot Ret 3.07 9.98 9.89 15.19 10.13 8.81 8.60 9/30/05 8.51

1 Tacoma Employees' Retirement System VV Performance Comparison Active High Yield Fixed Income Portfolios Periods Ended 12/31/10 45%

40%

35% 1 m 30% x 25%

20% Rate of Return 15% m 1 x

10% m 1 x m 1 m 1 x x 1 m m 5th x x 5% 25th Med 75th 1 x m 0% 95th

1 Quarter 2 Quarters 3 Quarters 1 Year 2 Years 3 Years 5 Years 10 Years

High Yield Composite 2.51 (86) 8.45 (80) 8.91 (74) 12.44 (80) 24.89 (74) 7.68 (75) 7.15 (78) 1 Policy Index 2.40 (88) 9.30 (69) 9.64 (63) 14.26 (62) 34.15 (22) 9.83 (42) 8.64 (52) x ML US HY BB/B Const. 2.40 (88) 9.30 (69) 9.64 (63) 14.26 (62) 29.18 (51) 8.57 (60) 7.61 (70) 7.95 (74) m ML High Yld II Tot Ret 3.07 (67) 9.98 (58) 9.89 (56) 15.19 (40) 34.70 (20) 10.13 (38) 8.81 (47) 8.60 (57)

Median 3.35 10.17 10.25 14.81 29.27 9.67 8.66 8.79 Number of Funds 94 94 94 94 92 89 82 59

2 Tacoma Employees' Retirement System VV Treasury Yield Curve Quarter Ended 12/31/10

8.0 m 7.0 x

6.0

5.0

4.0

Yield 3.0

2.0

1.0

0.0

-1.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0

Description Legend Yrs to Mat Yield Treasury Post Advisory Group 5.48 6.59 Yrs to Mat Yield High Yield Composite 5.48 6.59 1.00 0.32 ML US High Yld. BB/B Const. x 6.94 7.22 5.00 1.56 ML High Yld II Tot Ret m 6.85 7.70 10.00 3.37 15.00 4.19 20.00 4.53 25.00 4.59

3 Tacoma Employees' Retirement System VV Growth of One Dollar Post Advisory Group Quarter Ended 12/31/10

1.70

1.60

1.50

1.40

1.30

Value 1.20

1.10

1.00

0.90

0.80 12/05 12/06 12/07 12/08 12/09 12/10

Return $ Legend 3 Years Inception 9/30/05 Value Total 7.68 7.03 1.43 Policy Index 9.83 8.34 1.52 Performance Objective 11.58 10.09 1.67

1 Tacoma Employees' Retirement System VV Fixed Income Portfolio Characteristics Post Advisory Group vs. ML US High Yld. BB/B Const. 6.0 9.0 Effective Duration Years to Effective Maturity

3.0 4.5

0.0 0.0 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Port 3.04 3.11 3.21 3.43 3.07 3.89 4.14 4.01 Port 4.46 4.45 4.48 4.79 4.33 5.55 5.69 5.48 Index 3.99 4.28 4.39 4.46 4.47 4.50 4.60 4.69 Index 6.73 6.90 6.85 6.87 7.00 6.86 6.89 6.94

15.0 15.0 Yield to Effective Maturity Current Yield

7.5 7.5

0.0 0.0 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Date 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 Port 10.97 9.54 7.71 7.61 5.65 8.50 7.80 6.59 Port 9.30 8.56 8.24 7.82 6.72 8.31 8.21 8.15 Index 12.83 10.78 8.76 8.15 7.66 8.18 7.28 7.22 Index 10.81 9.16 8.41 8.21 8.02 8.25 7.93 7.88 Portfolio Index Characteristics represent 100% of portfolio's market value. 2 Tacoma Employees' Retirement System VV Fixed Income Structural Characteristics Post Advisory Group Quarter Ended 12/31/10

# Maturity Sectors Quarter $(MIL) Bond <1 1-10 10-20 >20 QLTY FIN FOR GA IND MISC MTGETRAN UTL 09/30/05 25.0 75 9.9 85.2 3.3 1.7 B 9 0 0 82 3 0 1 4 12/31/05 25.3 95 12.9 82.1 3.4 1.6 B 8 0 0 82 3 0 1 6 03/31/06 51.3 116 14.9 80.0 2.9 2.2 B 10 0 0 73 6 0 3 8 06/30/06 76.4 148 12.2 85.8 1.4 0.5 B 9 0 0 75 3 0 1 11 09/30/06 103.3 168 22.9 74.9 1.4 0.7 B 9 0 0 71 7 0 1 12 12/31/06 106.8 153 19.8 77.7 1.7 0.8 B 10 0 0 71 7 0 1 11 03/31/07 109.8 158 16.0 82.0 1.3 0.7 B 10 0 0 74 5 0 1 11 06/30/07 110.4 152 12.7 83.8 2.8 0.7 B 10 0 0 73 5 0 1 11 09/30/07 111.6 152 13.4 83.3 2.6 0.7 B 8 0 0 70 10 0 2 11 12/31/07 111.6 156 12.0 84.8 2.5 0.7 B 6 0 0 67 8 0 1 18 03/31/08 109.2 164 3.5 92.5 3.3 0.7 B 5 0 0 70 5 0 1 18 06/30/08 111.9 158 9.9 86.9 2.5 0.7 B 5 0 0 76 7 0 1 11 09/30/08 106.8 156 10.3 86.6 2.3 0.7 B 6 0 0 79 11 0 1 3 12/31/08 89.8 159 11.6 86.3 2.1 0.0 B 5 0 0 83 7 0 1 4 03/31/09 121.3 178 17.0 81.7 1.3 0.0 B 8 1 0 71 13 0 1 6 06/30/09 127.0 167 13.6 86.0 0.4 0.0 B 8 0 0 73 9 0 0 10 09/30/09 139.2 174 10.8 87.5 1.7 0.0 B 11 1 0 71 4 0 1 12 12/31/09 145.6 165 10.1 87.8 2.1 0.0 B 11 0 0 66 9 0 2 11 03/31/10 132.6 112 25.4 74.6 0.0 0.0 BB 7 0 0 49 28 0 2 14 06/30/10 70.6 93 7.2 89.9 2.8 0.0 B 8 0 0 64 11 0 3 13 09/30/10 74.7 116 5.7 92.5 1.8 0.0 B 9 0 0 70 5 0 4 11 12/31/10 76.6 122 4.2 95.5 0.3 0.0 B 8 0 0 71 4 0 3 13

ML US High Yld. BB/B Const. NA 1,698 2.1 89.1 4.3 4.5 BB 14 0 0 81 0 0 0 5

Characteristics represent 100% of portfolio's market value. 3 Tacoma Employees' Retirement System VV Fixed Income Return Versus Duration Compared to Barclays Aggregate Quarter Ended 12/31/10 3.0

2.5 x 2.0

1.5

1.0

Return 0.5

0.0 n

-0.5

-1.0 a -1.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 Duration

Description Legend Duration Total Return Post Advisory Group 4.01 2.51 91-Day Treasury Bill n 0.25 0.04 Barclays Aggregate a 4.98 -1.30 ML US High Yld. BB/B Const. x 4.69 2.40

4 Tacoma Employees' Retirement System VV Fixed Income Percent Invested by Sectors Post Advisory Group Quarter Ended 12/31/10

Moody's Quality Ratings Name Aaa Aa A Baa Ba B Other NR Total Government ------Treasury ------Agency ------

Corporate ------27.47 58.26 6.52 --- 92.25 Industrial ------17.31 48.26 5.55 --- 71.12 Utility ------4.21 8.93 ------13.14 Finance ------5.95 1.07 0.97 --- 7.99 Yankee ------

Transportation ------1.02 0.99 1.36 ------3.37

Mortgage ------GNMA ------FHLMC ------FNMA ------Other Mortgage ------

Municipals ------

Cash 3.04 ------0.27 1.06 ------4.37

Other ------Total 3.04 ------1.02 28.74 60.68 6.52 --- 100.00

5 Tacoma Employees' Retirement System VV Fixed Income Return Analysis Post Advisory Group Quarter Ended 12/31/10

Net Management Effect Barclays Total Interest Rate Quarter Aggregate Style Index* Return Anticipation Sector/Issue Trading Total 12/05 0.59 0.05 0.64 1.16 NA NA NA 0.51

03/06 -0.64 3.51 2.87 2.05 -0.10 -0.90 0.19 -0.81 06/06 -0.08 0.28 0.20 0.23 0.17 -0.53 0.40 0.03 09/06 3.81 0.22 4.03 2.74 -0.60 -0.73 0.04 -1.29 12/06 1.24 2.96 4.19 3.33 -0.80 -0.07 0.00 -0.86 2006 4.33 7.39 11.72 8.59 -1.33 -2.22 0.63 -3.13 03/07 1.50 1.24 2.74 2.76 -0.38 0.20 0.20 0.02 06/07 -0.52 0.85 0.32 0.49 0.20 0.06 -0.09 0.17 09/07 2.85 -2.50 0.35 1.02 0.18 0.69 -0.20 0.67 12/07 3.00 -4.16 -1.16 -0.15 0.42 0.75 -0.16 1.01 2007 6.96 -4.73 2.24 4.16 0.42 1.70 -0.25 1.93 03/08 2.17 -5.20 -3.04 -2.19 0.60 0.67 -0.41 0.85 06/08 -1.02 2.83 1.81 2.22 -0.15 0.87 -0.31 0.41 09/08 -0.48 -8.99 -9.48 -4.50 1.58 3.45 -0.05 4.98 12/08 4.57 -22.20 -17.63 -16.16 2.45 2.34 -3.32 1.47 2008 5.24 -31.63 -26.39 -19.94 4.54 7.50 -4.07 6.45 03/09 0.12 4.90 5.02 7.98 -0.36 6.42 -3.09 2.97 06/09 1.79 21.40 23.19 11.98 -4.58 -2.99 -3.63 -11.21 09/09 3.74 11.07 14.82 9.75 -3.56 0.88 -2.38 -5.06 12/09 0.20 5.84 6.04 4.52 -1.42 0.06 -0.16 -1.52 2009 5.93 51.58 57.51 38.72 -9.61 4.21 -8.99 -18.79 03/10 1.78 2.43 4.21 3.24 -0.85 -0.12 0.00 -0.97 06/10 3.49 -3.18 0.31 0.43 -0.09 0.29 -0.09 0.12

Index* : Policy Index 6 Tacoma Employees' Retirement System VV Fixed Income Return Analysis Post Advisory Group Quarter Ended 12/31/10

Net Management Effect Barclays Total Interest Rate Quarter Aggregate Style Index* Return Anticipation Sector/Issue Trading Total 09/10 2.48 4.26 6.74 5.79 -0.91 0.19 -0.23 -0.95 12/10 -1.30 3.70 2.40 2.51 -0.24 0.40 -0.05 0.11 2010 6.54 7.71 14.26 12.44 -2.08 0.76 -0.36 -1.82

From Inception 5.63 2.71 8.34 7.03 -1.31 From 12/05 5.80 2.84 8.64 7.15 -1.72 2.34 -2.10 -1.49

Index* : Policy Index 7 Tacoma Employees' Retirement System VV Fixed Income Portfolio Activity Post Advisory Group Quarter Ended 12/31/10

Additions Deletions Security Name Coupon Maturity Quantity $(000) New Security Name Coupon Maturity Quantity $(000) Elim Affinion Group Inc S 11.50 10/15/15 150 156 Amc Entmt Inc Sr Sb 11.00 2/01/16 300 320 * Bon Ton Dept Stores 10.25 3/15/14 325 332 Alere Inc Sr Sub Nt 8.63 10/01/18 100 102 Gxs Corp Sr Nt 9.75% 9.75 6/15/15 175 173 Building Matls Corp 6.88 8/15/18 225 221 * Global Cash Access L 8.75 3/15/12 75 75 Celanese US Holdings 6.63 10/15/18 200 205 * Intelsat Corporation 9.25 6/15/16 750 810 Copano Energy L L C 8.13 3/01/16 300 309 Landrys Restaurants 11.63 12/01/15 375 400 Dyncorp Intl Inc Sr 10.38 7/01/17 175 174 * Stream Global Svcs I 11.25 10/01/14 75 76 Energy Xxi Gulf Coas 16.00 6/15/14 681 773 * Supervalu Inc Sr Nt 8.00 5/01/16 475 455 Entertainment Pptys 7.75 7/15/20 475 480 * Affinion Group Inc S 7.88 12/15/18 625 609 * Entravision Communic 8.75 8/01/17 200 204 * Alere Inc Sr Sub Nt 9.00 5/15/16 450 464 * Equinix Inc Sr Nt 8. 8.13 3/01/18 450 470 Allen Sys Group Inc 10.50 11/15/16 400 403 * Ferrellgas L P / Fer 6.75 5/01/14 500 509 * Ball Corp Sr Nt 5.75 5.75 5/15/21 225 218 * Freedom Group Inc Sr 10.25 8/01/15 250 264 * Blyth Inc Sr Nt 5.5% 5.50 11/01/13 550 539 * Freedom Group Inc Sr 10.25 8/01/15 50 53 * Cincinnati Bell Inc 8.38 10/15/20 800 768 * Georgia Pac Corp Sr 8.00 1/15/24 625 702 * Communications & Pwr 8.00 2/01/12 375 375 * Goodman Global Inc S 13.50 2/15/16 525 578 * Davita Inc Sr Nt 6.6 6.62 11/01/20 400 396 * Harrahs Oper Inc Sr 11.25 6/01/17 375 411 * Energy Transfer Equi 7.50 10/15/20 300 309 * Knowledge Learning C 7.75 2/01/15 125 123 Express Llc/Express 8.75 3/01/18 750 797 * Lbi Escrow Corp Sr N 8.00 11/01/17 45 50 Fgi Oper Co Inc Sr N 10.25 8/01/15 300 315 * Nextel Communication 6.88 10/31/13 625 629 * Geoeye Inc Sr Sec 8. 8.62 10/01/16 325 340 * Regal Entmt Group Sr 9.13 8/15/18 200 210 * Interline Brands Inc 7.00 11/15/18 325 330 * Rhodia Sr Nt 144a 20 6.88 9/15/20 250 255 * International Lease 8.25 12/15/20 200 206 * Sears Hldgs Corp Sr 6.63 10/15/18 150 140 Lender Processing Sv 8.12 7/01/16 531 544 * Solutia Inc Gtd Srnt 8.75 11/01/17 875 956 * Manitowoc Inc Sr Nt 8.50 11/01/20 300 319 * Talecris Biotherapeu 7.75 11/15/16 100 109 Purchase Turnover Sales Turnover

8 Tacoma Employees' Retirement System VV Fixed Income Portfolio Activity Post Advisory Group Quarter Ended 12/31/10

Additions Deletions Security Name Coupon Maturity Quantity $(000) New Security Name Coupon Maturity Quantity $(000) Elim Phi Inc Sr Nt 144a 1 8.62 10/15/18 225 231 * Toys R US Ppty Co I 10.75 7/15/17 400 456 Pilgrims Pride Corp 7.88 12/15/18 275 274 * United Rentals North 9.25 12/15/19 425 473 Reynolds Group Issue 7.12 4/15/19 725 738 * Valeant Pharmaceutic 6.75 10/01/17 650 663 * Regency Energy Partn 6.88 12/01/18 275 278 * Windstream Corp Sr N 7.88 11/01/17 925 964 * Rent A Ctr Inc New S 6.62 11/15/20 250 249 * Cash Equivalents 0.00 1/01/11 347 347 Russel Metals Inc Sr 6.38 3/01/14 250 250 * Express Llc/Express 8.75 3/01/18 750 791 * Severstal Columbus E 10.25 2/15/18 350 369 * Phi Inc 8.63 10/15/18 225 221 * Videotron Ltee Sr Nt 9.12 4/15/18 700 781 * Wind Acquisition Fin 7.25 2/15/18 200 204 * Windstream Corp Sr N 8.12 9/01/18 925 971 *

Purchase Turnover Sales Turnover

9 Tacoma Employees' Retirement System VV Fixed Income Holdings Post Advisory Group Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Asset Backed Midwest Generation 8.56 1/02/16 503 503 Ba2 B+ 7/02/12 1.40 7.88 508 0.68 4.34 508 0.68 Finance US Oncology Hldgs In 6.90 3/15/12 370 370 Caa1 CCC+ 3/15/12 1.12 6.24 373 0.50 8.17 Capitalsource Inc Sr 12.75 7/15/14 225 225 Ba3 B+ 7/15/14 2.76 7.22 263 0.35 3.42 Deluxe Corp Nt 5.125 5.13 10/01/14 500 500 Ba3 B 10/01/14 3.32 5.50 494 0.66 3.14 Harland Clarke Hldgs 9.50 5/15/15 375 375 Caa1 B- 5/15/15 3.42 10.96 356 0.47 2.80 American Real Estate 7.75 1/15/16 250 250 Ba3 BBB- 1/15/16 3.84 7.75 250 0.33 1.45 Cit Group Inc Secd N 7.00 5/01/16 800 800 B3 B+ 5/01/16 0.15 NA 803 1.07 3.70 Crum & Forster Hldgs 7.75 5/01/17 750 750 Ba1 BBB- 11/01/14 3.54 6.86 780 1.04 1.76 Healthnet Inc Sr Nt 6.38 6/01/17 1,000 1,000 Ba3 BB 6/01/17 5.15 6.23 1,008 1.34 3.40 Dupont Fabros Techno 8.50 12/15/17 675 675 Ba2 BB 12/15/17 5.21 7.20 722 0.96 1.77 American Real Estate 8.00 1/15/18 450 450 Ba3 BBB- 7/15/17 4.74 8.07 450 0.60 1.51 Celanese US Holdings 6.63 10/15/18 200 0 Ba3 BB- 10/15/18 6.14 6.26 0 0.00 2.62 Entertainment Pptys 7.75 7/15/20 475 0 Baa3 BB+ 7/15/20 6.58 7.58 0 0.00 NA 5,499 7.32 Industrial Sheridan Group Inc S 10.25 8/15/11 475 475 B2 B 8/15/11 0.56 12.78 468 0.62 1.98 Communications & Pwr 8.00 2/01/12 0 375 B3 B- 8/01/11 0.47 8.02 375 0.50 NA Global Cash Access L 8.75 3/15/12 300 375 B3 B 3/15/12 1.10 8.29 377 0.50 3.75 El Pollo Loco Inc 2n 11.75 12/01/12 700 700 B3 CCC+ 12/01/11 1.33 12.39 714 0.95 3.42 Edison Mission Energ 7.50 6/15/13 400 400 B3 B- 6/15/13 2.19 8.42 392 0.52 7.13

10 Tacoma Employees' Retirement System VV Fixed Income Holdings Post Advisory Group Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Industrial (cont.) Blyth Inc Sr Nt 5.5% 5.50 11/01/13 0 550 B3 B+ 11/01/13 2.56 6.28 539 0.72 NA Angiotech Pharmaceut 4.05 12/01/13 750 750 Caa2 NR 12/01/13 -0.14 11.37 618 0.82 -2.74 Elan Fin Plc / Elan 8.88 12/01/13 1,050 1,050 B2 B 12/01/13 2.51 8.28 1,066 1.42 1.21 Network Communicatio 10.75 12/01/13 600 600 Ca NR 12/01/13 0.00 0.00 110 0.15 -38.33 Russel Metals Inc Sr 6.38 3/01/14 0 250 Ba1 BB 3/01/13 1.92 6.86 250 0.33 NA Bon Ton Dept Stores 10.25 3/15/14 525 850 Caa1 CCC+ 3/15/12 1.32 12.15 867 1.15 6.18 Wca Waste Corp Sr Nt 9.25 6/15/14 1,025 1,025 B3 B- 6/15/14 2.91 8.07 1,061 1.41 2.26 US Oncology Inc Sr S 10.75 8/15/14 900 900 B3 CCC+ 8/15/14 2.85 9.54 933 1.24 2.25 Travelport Llc / Tra 9.88 9/01/14 700 700 B3 CCC+ 9/01/14 2.90 10.75 682 0.91 -2.92 Stream Global Svcs I 11.25 10/01/14 550 625 B1 B+ 10/01/14 2.92 10.99 630 0.84 5.17 Apria Healthcare Gro 11.25 11/01/14 500 500 Ba2 BB+ 11/01/14 3.06 8.37 546 0.73 1.90 Knowledge Learning C 7.75 2/01/15 425 300 B2 B 2/01/15 3.32 8.33 294 0.39 0.97 Berry Plastics Corp 5.04 2/15/15 750 750 B1 B 2/15/15 -0.05 6.05 724 0.96 3.74 Axcan Inter Hldgs In 9.25 3/01/15 1,000 1,000 Ba3 BB+ 3/01/15 3.32 8.23 1,035 1.38 1.77 Holly Energy Partner 6.25 3/01/15 650 650 B1 B+ 3/01/15 3.54 6.52 644 0.86 2.11 Essar Steel Algoma I 9.38 3/15/15 800 800 B3 B+ 3/15/15 3.32 9.19 805 1.07 2.48 Petrohawk Energy Cor 7.88 6/01/15 775 775 B3 B+ 6/01/14 3.10 7.01 807 1.07 1.30 Freedom Group Inc Sr 10.25 8/01/15 250 0 Ba3 B 8/01/15 3.73 8.76 0 0.00 NA Fgi Oper Co Inc Sr N 10.25 8/01/15 0 300 Ba3 B 8/01/15 3.48 8.89 315 0.42 NA Global Crossing Ltd 12.00 9/15/15 650 650 B2 B 9/15/15 3.52 8.64 733 0.98 2.46 Affinion Group Inc S 11.50 10/15/15 700 850 Caa1 B- 4/15/13 2.31 10.33 884 1.18 1.21 Ryerson Inc Sr Nt 12 12.00 11/01/15 600 600 Caa1 CCC+ 11/01/15 3.56 10.71 629 0.84 4.64

11 Tacoma Employees' Retirement System VV Fixed Income Holdings Post Advisory Group Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Industrial (cont.) Metals Usa Inc Sr Nt 11.13 12/01/15 350 350 B3 B- 12/01/15 3.72 9.75 368 0.49 1.95 Landrys Restaurants 11.63 12/01/15 450 825 B3 B 12/01/14 3.29 10.65 881 1.17 3.97 Amc Entmt Inc Sr Sb 11.00 2/01/16 300 0 Caa1 CCC+ 2/01/11 0.46 6.74 0 0.00 1.90 Goodman Global Inc S 13.50 2/15/16 525 0 NR NR 2/15/16 3.76 11.38 0 0.00 NA Copano Energy L L C 8.13 3/01/16 1,400 1,100 B1 B+ 3/01/16 4.06 7.41 1,133 1.51 2.99 Service Corp Intl Sr 6.75 4/01/16 750 750 B1 BB- 4/01/16 4.29 6.35 763 1.02 0.32 Steel Dynamics Inc S 7.75 4/15/16 350 350 Ba2 BB+ 4/15/16 4.24 6.56 368 0.49 3.09 Supervalu Inc Sr Nt 8.00 5/01/16 575 1,050 B2 B+ 5/01/16 4.16 9.02 1,005 1.34 -2.96 Cgg Veritas Sr Nt 9. 9.50 5/15/16 350 350 Ba3 BB- 5/15/16 4.17 7.33 383 0.51 3.13 Alere Inc Sr Sub Nt 9.00 5/15/16 0 450 B3 B- 5/15/16 4.16 8.29 464 0.62 NA Speedway Motorsports 8.75 6/01/16 425 425 Ba1 BB 6/01/16 4.27 7.00 458 0.61 1.82 Rite Aid Corp Gtd Sr 9.75 6/12/16 275 275 B3 B+ 6/12/16 4.13 7.45 303 0.40 5.35 Wmg Acquisition Corp 9.50 6/15/16 675 675 Ba2 BB- 6/15/16 4.22 7.84 724 0.96 2.48 Lender Processing Sv 8.13 7/01/16 0 531 Ba2 BB+ 7/01/16 4.21 7.56 544 0.72 NA Wendys / Arbys Resta 10.00 7/15/16 1,325 1,325 B3 B+ 7/15/16 4.07 8.07 1,438 1.91 4.37 H & E Equipment Serv 8.38 7/15/16 875 875 B3 BB- 7/15/14 3.20 8.62 893 1.19 4.12 Talecris Biotherapeu 7.75 11/15/16 625 525 B1 BB 11/15/16 4.67 6.01 570 0.76 0.42 Altra Holdings Inc S 8.13 12/01/16 800 800 B1 B+ 12/01/16 4.64 6.87 848 1.13 3.90 National Money Mart 10.38 12/15/16 900 900 B2 B+ 12/15/16 4.41 8.63 972 1.29 3.87 Greif Inc Sr Nt 6.75 6.75 2/01/17 650 650 Ba2 BB 2/01/17 4.82 5.86 679 0.90 2.99 Stone Energy Corp Sr 8.63 2/01/17 1,050 1,050 Caa1 B 2/01/17 4.49 8.30 1,066 1.42 5.53 Accellent Inc Sr Sec 8.38 2/01/17 1,350 1,350 B1 B+ 2/01/17 4.54 7.85 1,384 1.84 2.57

12 Tacoma Employees' Retirement System VV Fixed Income Holdings Post Advisory Group Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Industrial (cont.) International Lease 8.75 3/15/17 575 575 B1 BB+ 3/15/17 4.66 7.27 617 0.82 2.06 Leucadia Natl Corp S 7.13 3/15/17 1,100 1,100 B1 BB+ 3/15/15 3.61 6.54 1,133 1.51 4.54 Squaretwo Finl Corp 11.63 4/01/17 350 350 B2 B 4/01/17 4.19 11.96 345 0.46 13.98 C&S Group Enterprise 8.38 5/01/17 625 625 B2 BB- 5/01/17 4.69 9.33 597 0.79 -1.52 Harrahs Oper Inc Sr 11.25 6/01/17 375 0 Caa1 B 6/01/17 4.56 9.30 0 0.00 5.34 Dyncorp Intl Inc Sr 10.38 7/01/17 175 0 B1 B 7/01/17 4.63 10.47 0 0.00 5.65 Toys R US Ppty Co I 10.75 7/15/17 1,000 600 B2 B+ 7/15/17 4.56 7.96 684 0.91 3.29 Entravision Communic 8.75 8/01/17 200 0 B1 B 8/01/17 4.99 8.36 0 0.00 NA Tpc Group Llc Sr Sec 8.25 10/01/17 325 325 B1 B+ 10/01/16 4.58 7.50 340 0.45 4.23 Valeant Pharmaceutic 6.75 10/01/17 650 0 B1 BB- 10/01/17 5.51 6.39 0 0.00 -0.53 Ardagh Packaging Sr 7.38 10/15/17 425 425 Ba3 BB- 10/15/17 5.19 6.79 438 0.58 3.31 Solutia Inc Gtd Srnt 8.75 11/01/17 875 0 B2 B+ 11/01/17 5.12 7.07 0 0.00 2.25 Lbi Escrow Corp Sr N 8.00 11/01/17 500 455 Ba2 BB 11/01/17 5.22 6.03 504 0.67 3.10 United States Stl Co 7.00 2/01/18 700 700 Ba2 BB 2/01/18 5.34 6.73 711 0.95 1.24 Severstal Columbus E 10.25 2/15/18 0 350 B3 B 2/15/18 4.83 9.18 369 0.49 NA Express Llc/Express 8.75 3/01/18 750 0 B3 B 3/01/18 5.38 7.76 0 0.00 NA Niska Gas Strge US L 8.88 3/15/18 600 600 B1 BB- 3/15/16 4.35 7.90 642 0.85 2.10 Videotron Ltee Sr Nt 9.13 4/15/18 0 700 Ba1 BB 6/15/14 3.49 6.22 781 1.04 NA Kemet Corp Sr Nt 144 10.50 5/01/18 686 686 B1 B 5/01/18 5.03 9.07 737 0.98 5.28 Linn Energy Llc Sr N 9.88 7/01/18 825 825 B2 B 7/01/18 5.07 8.15 903 1.20 2.05 Iron Mtn Inc Del Sr 8.75 7/15/18 1,000 1,000 B1 B+ 7/15/18 5.26 7.86 1,050 1.40 1.02 Aircastle Ltd Sr Nt 9.75 8/01/18 175 175 Ba3 BB+ 2/01/16 4.36 7.93 191 0.25 9.39

13 Tacoma Employees' Retirement System VV Fixed Income Holdings Post Advisory Group Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Industrial (cont.) Regal Entmt Group Sr 9.13 8/15/18 200 0 B3 B- 8/15/18 5.51 8.27 0 0.00 3.75 Building Matls Corp 6.88 8/15/18 225 0 B1 BB+ 8/15/18 5.88 7.17 0 0.00 2.53 Energysolutions Inc/ 10.75 8/15/18 600 600 B3 BB- 8/15/18 5.01 9.06 655 0.87 3.80 Chemtura Corp Sr Nt 7.88 9/01/18 375 375 B1 NR 9/01/18 5.58 6.77 399 0.53 3.82 Inergy L P & Inergy 7.00 10/01/18 550 550 Ba3 B+ 4/01/17 5.22 7.22 554 0.74 0.02 Whiting Pete Corp Ne 6.50 10/01/18 200 200 Ba3 BB 10/01/18 5.88 6.33 202 0.27 0.38 Alere Inc Sr Sub Nt 8.63 10/01/18 450 350 B3 B- 10/01/18 5.42 8.31 356 0.47 2.39 Phi Inc 8.63 10/15/18 225 0 NR B+ 10/15/17 5.07 8.96 0 0.00 6.54 Sears Hldgs Corp Sr 6.63 10/15/18 450 300 Ba1 BB+ 10/15/18 5.77 7.79 280 0.37 -5.78 Interline Brands Inc 7.00 11/15/18 0 325 B2 BB- 11/15/18 5.90 6.75 330 0.44 NA Pilgrims Pride Corp 7.88 12/15/18 0 275 B3 BB- 12/15/18 5.75 7.96 274 0.36 NA Affinion Group Inc S 7.88 12/15/18 0 625 B3 B- 12/15/17 5.38 8.55 609 0.81 NA Reynolds Group Issue 7.13 4/15/19 0 725 Ba3 BB 4/15/19 6.06 6.84 738 0.98 NA Plains Expl& Prodtn 8.63 10/15/19 900 900 B1 BB- 10/15/19 6.06 7.15 986 1.31 2.22 Reliance Intermediat 9.50 12/15/19 550 550 Ba2 BB- 12/15/19 5.93 8.66 578 0.77 1.44 United Rentals North 9.25 12/15/19 700 275 B2 B 12/15/19 6.09 7.50 306 0.41 4.93 Swift Energy Co Gtd 8.88 1/15/20 1,150 1,150 B3 BB- 1/15/20 5.97 7.60 1,245 1.66 6.12 Solutia Inc Sr Nt 7. 7.88 3/15/20 175 175 B1 B+ 3/15/20 6.36 6.84 187 0.25 1.98 Ak Stl Corp Sr Nt 7. 7.63 5/15/20 1,125 1,125 Ba3 BB 5/15/20 6.47 7.59 1,128 1.50 0.92 Ferrellgas Partners 8.63 6/15/20 300 300 B2 B- 6/15/17 5.31 7.49 323 0.43 2.27 Fidelity Natl Inform 7.88 7/15/20 400 400 Ba2 BB- 7/15/20 6.41 7.04 423 0.56 -0.01 Rhodia Sr Nt 144a 20 6.88 9/15/20 250 0 B1 BB 9/15/20 7.08 6.60 0 0.00 1.58

14 Tacoma Employees' Retirement System VV Fixed Income Holdings Post Advisory Group Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Industrial (cont.) B E Aerospace Sr Nt 6.88 10/01/20 325 325 Ba3 BB 10/01/20 6.86 6.42 336 0.45 2.93 Lifepoint Hospitals 6.63 10/01/20 375 375 Ba1 BB- 10/01/20 6.87 6.73 372 0.50 -1.05 Davita Inc Sr Nt 6.6 6.63 11/01/20 0 400 B2 B 11/01/20 6.94 6.76 396 0.53 NA Manitowoc Inc Sr Nt 8.50 11/01/20 0 300 B3 B+ 11/01/20 6.49 7.58 319 0.42 NA Rent A Ctr Inc New S 6.63 11/15/20 0 250 Ba3 BB- 11/15/20 6.98 6.69 249 0.33 NA International Lease 8.25 12/15/20 0 200 B1 BB+ 12/15/20 6.61 7.81 206 0.27 NA Ball Corp Sr Nt 5.75 5.75 5/15/21 0 225 Ba1 BB+ 5/15/21 7.52 6.18 218 0.29 NA Georgia Pac Corp Sr 8.00 1/15/24 625 0 Ba3 BB 1/15/24 8.11 6.60 0 0.00 3.58 53,447 71.12 Miscellaneous Cash Equivalents 0.00 1/01/11 2,634 2,287 Aaa AAA 1/01/11 0.00 0.00 2,287 3.04 0.00 Freedom Group Inc Sr 10.25 8/01/15 50 0 B2 B 8/01/15 3.73 8.76 0 0.00 NA Wind Acquisition Fin 7.25 2/15/18 0 200 Ba2 BB- 2/15/18 5.44 6.94 204 0.27 NA Express Llc/Express 8.75 3/01/18 0 750 B3 B 3/01/18 5.15 7.60 797 1.06 NA 3,287 4.37 Transportation Energy Xxi Gulf Coas 16.00 6/15/14 681 0 Caa1 B+ 6/15/14 2.68 12.91 0 0.00 3.56 Marquette Transn Co 10.88 1/15/17 775 775 B3 B- 1/15/17 4.14 10.42 791 1.05 2.70 United Air Lines Inc 9.75 1/15/17 666 666 Baa2 BBB+ 7/15/13 2.38 3.90 766 1.02 6.54 Phi Inc Sr Nt 144a 1 8.63 10/15/18 0 225 B2 B+ 10/15/18 5.45 8.18 231 0.31 NA Delta Pass-Through T 8.02 2/10/24 733 733 Ba2 BB 8/10/13 0.17 7.15 747 0.99 3.51 2,535 3.37

15 Tacoma Employees' Retirement System VV Fixed Income Holdings Post Advisory Group Quarter Ended 12/31/10

Quantity Quality Effective Buy/Hold Name Coupon Maturity 9/30/10 12/31/10 Moody S&P Maturity Dura Yield $(000) % Port Return Utilities Nextel Communication 6.88 10/31/13 625 0 Ba2 BB- 10/31/11 1.17 7.74 0 0.00 1.35 Ferrellgas L P / Fer 6.75 5/01/14 500 0 Ba3 B+ 11/01/11 1.26 6.05 0 0.00 NA Echostar Dbs Corp Sr 7.75 5/31/15 725 725 Ba3 BB- 5/31/15 3.70 6.11 770 1.03 1.49 Gxs Corp Sr Nt 9.75% 9.75 6/15/15 400 575 B2 B 6/15/15 3.51 10.10 568 0.76 1.60 Intelsat Corporation 9.25 6/15/16 800 1,550 B3 BB- 6/15/16 4.26 7.44 1,674 2.23 3.48 Geoeye Inc Sr Sec 8. 8.63 10/01/16 0 325 B3 B- 10/01/16 4.41 7.64 340 0.45 NA Allen Sys Group Inc 10.50 11/15/16 0 400 B3 B 11/15/16 4.24 10.32 403 0.54 NA Paetec Holding Corp 8.88 6/30/17 700 700 Ba3 B 6/30/17 4.91 7.54 747 0.99 4.30 Windstream Corp Sr N 7.88 11/01/17 925 0 Ba3 B+ 11/01/17 5.21 7.10 0 0.00 2.75 Equinix Inc Sr Nt 8. 8.13 3/01/18 800 350 Ba2 B+ 3/01/18 5.24 7.30 366 0.49 -0.18 Holly Energy Partner 8.25 3/15/18 550 550 B1 B+ 3/15/18 5.25 7.43 575 0.76 2.24 Windstream Corp Sr N 8.13 9/01/18 0 925 Ba3 B+ 9/01/18 5.46 7.26 971 1.29 NA Metropcs Wireless In 7.88 9/01/18 775 775 B2 B 9/01/18 5.56 7.23 804 1.07 2.66 Regency Energy Partn 6.88 12/01/18 0 275 B1 B+ 12/01/18 5.93 6.67 278 0.37 NA Nrg Energy Inc Gtd S 8.50 6/15/19 250 250 B1 BB- 6/15/19 5.91 7.96 258 0.34 0.02 Gci Inc Sr Nt 8.625% 8.63 11/15/19 400 400 B2 BB- 11/15/16 4.91 7.25 433 0.58 3.45 Cincinnati Bell Inc 8.38 10/15/20 0 800 B2 B+ 10/15/20 6.29 8.99 768 1.02 NA Intelsat Jackson Hld 7.25 10/15/20 600 600 B3 B+ 10/15/20 6.74 7.03 609 0.81 2.82 Energy Transfer Equi 7.50 10/15/20 0 300 Ba2 BB- 10/15/20 6.66 7.07 309 0.41 NA 9,873 13.14

Total Portfolio 2.56

16 Tacoma Employees' Retirement System VV Fund Return Table Real Estate Composite Quarter Ended 12/31/10

Since Inception Inception Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years 12/31/00 Date Return Adelante Capital Mgmnt 6.59 20.84 17.84 30.02 -3.48 0.39 9.58 12/31/97 8.53 Wilshire REIT Index 7.87 22.27 17.10 28.60 0.18 2.42 10.47 12/31/97 8.44 Wilshire REIT Index + 1% 8.12 22.77 17.85 29.60 1.18 3.42 11.47 12/31/97 9.44

INVESCO Core Real Estate U.S.A., LLC 3.61 9/30/10 3.61

Real Estate Composite 5.22 19.29 16.32 28.35 -3.89 0.13 9.43 3/31/88 4.98 Policy Index 6.25 20.43 15.33 26.66 -0.32 2.11 10.31 3/31/88 9.13 Wilshire REIT Index 7.87 22.27 17.10 28.60 0.18 2.42 10.47 3/31/88 9.20

Indices Since Wilshire REIT Index 7.87 22.27 17.10 28.60 0.18 2.42 10.47 3/31/88 9.20 NAREIT 7.67 20.87 16.45 27.60 0.64 2.39 10.34 3/31/88 9.02 NCREIF Property Index 4.62 8.66 12.25 13.11 -4.18 3.51 7.38 3/31/88 6.97 Wilshire Real Est. Secs 8.18 22.50 17.09 29.12 0.12 2.32 10.34 3/31/88 8.18

1 Tacoma Employees' Retirement System VV Performance Comparison REIT Equity Portfolios Periods Ended 12/31/10 40%

35%

30% 2 2 1 1 25% 1 2 20% 1 2 15%

Rate of Return 2 10% 5th 1 25th Med 1 2 5% 75th 95th 2 1 2 0% 1

-5%

1 Quarter 2 Quarters 3 Quarters 1 Year 2 Years 3 Years 5 Years 10 Years

Adelante Capital Mgmnt 6.59 (73) 20.84 (73) 17.84 (39) 30.02 (23) 28.21 (58) -3.48 (93) 0.39 (96) 9.58 (96) 1 Wilshire REIT Index 7.87 (29) 22.27 (29) 17.10 (59) 28.60 (53) 28.60 (58) 0.18 (72) 2.42 (74) 10.47 (80) 2 Wilshire REIT Index + 1% 8.12 (23) 22.77 (23) 17.85 (39) 29.60 (29) 29.60 (48) 1.18 (68) 3.42 (67) 11.47 (61)

Median 7.19 21.78 17.59 29.09 29.53 2.00 4.10 11.90 Number of Funds 30 30 30 30 29 29 28 26

2 Tacoma Employees' Retirement System VV Growth of One Dollar Adelante Capital Mgmnt Quarter Ended 12/31/10

4.50

4.00

3.50

3.00

2.50 Value 2.00

1.50

1.00

0.50 12/97 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10

Return $ Legend 3 Years Inception 12/31/97 Value Total -3.48 8.53 2.90 Wilshire REIT Index 0.18 8.44 2.87 Wilshire REIT Index + 1% 1.18 9.44 3.26

1 Tacoma Employees' Retirement System VV REIT Structural Characteristics Adelante Capital Mgmnt Quarter Ended 12/31/10

Property Type Sectors % # % % % % Indus- Regnl Local Factory Mfg. Health Diver- Quarter $(000) Stocks Cash Equity Other REIT Office trial Storage Retail Retail Outlet Apts Housing Care Hotel sified Other 03/31/98 34,227 32 4 0 96 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 06/30/98 43,542 32 3 97 0 93 19.4 0.0 0.0 13.3 1.1 0.0 28.7 0.0 0.0 11.6 23.4 2.4 09/30/98 48,803 28 3 97 0 96 24.4 0.0 0.0 11.3 1.9 0.0 22.5 0.0 0.0 9.0 28.1 2.7 12/31/98 59,528 32 6 94 0 97 24.0 0.0 0.0 13.7 1.2 0.0 29.9 0.0 0.0 5.2 21.7 4.3 03/31/99 66,252 35 2 98 0 97 24.2 0.0 0.0 14.6 5.0 0.0 29.5 0.0 0.0 4.4 20.3 1.9 06/30/99 81,992 36 3 97 0 97 27.4 0.5 0.0 13.1 5.7 0.0 26.5 0.0 0.0 4.1 21.1 1.6 09/30/99 76,007 36 0 100 0 96 29.8 0.5 0.0 12.4 5.6 0.0 26.8 0.0 0.0 3.0 20.3 1.7 12/31/99 90,522 37 4 96 0 98 29.4 0.1 0.0 11.9 4.4 0.0 28.4 0.0 0.0 2.3 22.2 1.3 03/31/00 94,586 35 3 97 0 98 30.1 0.0 0.0 11.8 4.7 0.0 28.7 0.0 0.0 2.3 21.5 1.0 06/30/00 105,636 31 4 96 0 98 31.6 0.0 0.0 13.5 3.8 0.0 28.2 0.0 0.0 1.9 20.6 0.4 09/30/00 116,733 29 3 97 0 100 33.8 0.0 0.0 14.8 2.7 0.0 24.6 0.0 0.0 2.1 21.9 0.0 12/31/00 121,186 30 6 94 0 100 34.1 0.4 0.0 10.2 2.6 0.0 28.0 0.0 0.0 2.3 22.4 0.0 03/31/01 118,390 29 7 93 0 100 31.9 0.8 0.0 9.6 1.4 0.0 28.4 0.0 0.0 2.0 25.9 0.0 06/30/01 130,031 29 4 96 0 97 33.0 2.1 0.0 9.3 1.3 0.0 29.7 0.0 0.0 1.6 23.0 0.0 09/30/01 130,767 32 2 98 0 97 34.8 2.4 0.0 9.1 2.4 0.0 30.7 0.0 0.0 2.9 17.6 0.0 12/31/01 135,504 28 6 94 0 97 32.9 1.9 0.0 9.1 2.8 0.0 34.2 0.0 0.0 0.0 19.1 0.0 03/31/02 139,129 28 4 96 0 97 29.9 1.9 0.0 11.7 3.2 0.0 28.2 0.0 0.0 0.0 19.3 5.8 06/30/02 114,602 29 3 97 0 97 25.1 2.2 0.0 13.4 4.0 0.0 27.1 0.0 0.0 0.0 21.8 6.4 09/30/02 105,459 30 2 98 0 97 23.5 3.1 0.0 14.0 4.2 0.0 26.9 0.0 0.0 0.0 19.3 9.0 12/31/02 94,775 30 3 98 0 100 23.2 3.1 0.0 14.2 4.5 0.0 27.1 0.0 0.0 0.0 18.8 9.0 03/31/03 96,357 28 7 93 0 96 22.7 4.7 0.0 18.0 5.0 0.0 25.0 0.0 0.0 0.0 18.6 6.0 06/30/03 107,090 32 2 98 0 100 18.7 4.3 0.0 18.0 6.5 0.0 23.7 0.0 0.0 0.0 17.1 11.8 *Index 302,419 94 0 100 0 100 10.0 8.0 5.1 14.2 6.5 0.0 14.8 0.2 4.7 6.4 6.8 23.3

Index : Wilshire REIT Index

2 Tacoma Employees' Retirement System VV REIT Structural Characteristics Adelante Capital Mgmnt Quarter Ended 12/31/10

Property Type Sectors % # % % % % Indus- Regnl Local Factory Mfg. Health Diver- Quarter $(000) Stocks Cash Equity Other REIT Office trial Storage Retail Retail Outlet Apts Housing Care Hotel sified Other 09/30/03 117,524 31 3 97 0 94 17.0 4.6 0.0 20.1 7.6 0.0 27.6 0.0 0.0 0.0 16.7 6.3 12/31/03 121,467 28 4 96 0 100 16.4 4.2 0.0 20.3 8.0 0.0 27.6 0.0 0.0 0.0 15.9 7.5 03/31/04 137,170 27 2 98 0 100 13.5 4.1 0.0 22.9 8.4 0.0 25.2 0.0 0.0 0.0 16.3 9.5 06/30/04 131,462 26 3 97 0 100 14.4 4.0 0.0 20.8 8.1 0.0 27.5 0.0 0.0 0.0 15.5 9.6 09/30/04 141,525 27 9 91 0 100 17.1 4.0 0.0 19.4 8.7 0.0 26.3 0.0 0.0 0.0 14.5 10.0 12/31/04 137,458 27 2 98 0 100 19.3 4.1 0.0 19.2 9.0 0.0 27.2 0.0 0.0 0.0 13.5 7.6 03/31/05 125,604 28 2 98 0 99 20.2 4.1 0.0 18.8 9.2 0.0 24.9 0.0 0.0 0.0 13.6 9.2 06/30/05 147,768 27 4 96 0 99 19.7 2.3 0.0 20.7 9.3 0.0 26.7 0.0 0.0 0.0 13.8 7.5 09/30/05 134,185 28 3 97 0 97 20.5 5.3 0.0 20.0 10.7 0.0 27.0 0.0 0.0 0.0 14.7 1.8 12/31/05 139,476 29 3 97 0 100 17.9 6.5 0.0 19.2 9.8 0.0 26.2 0.0 0.0 1.3 14.9 4.1 03/31/06 162,391 27 4 96 0 100 19.1 5.4 0.0 17.6 8.0 0.0 26.9 0.0 0.0 2.3 14.1 6.6 06/30/06 151,334 30 3 97 0 100 13.3 5.6 0.0 17.5 8.5 0.0 28.6 0.0 0.0 0.8 15.2 10.6 09/30/06 159,683 30 0 100 0 100 14.1 5.5 0.0 17.9 6.9 0.0 27.4 0.0 0.0 1.3 15.7 11.3 12/31/06 175,569 28 3 97 0 100 14.6 4.8 0.0 20.9 2.3 0.0 24.8 0.0 0.0 2.9 16.4 13.3 03/31/07 182,388 26 3 97 0 100 14.3 4.2 0.0 22.9 3.0 0.0 22.6 0.0 0.0 3.2 14.7 15.2 06/30/07 159,261 26 1 99 0 88 15.8 4.6 0.0 23.8 3.4 0.0 25.2 0.0 0.0 5.1 16.2 5.9 09/30/07 162,285 25 4 96 0 100 12.6 13.4 0.0 21.6 3.6 0.0 20.4 0.0 0.0 5.1 7.8 15.6 12/31/07 139,575 25 3 97 0 100 13.5 13.8 0.0 22.1 3.9 0.0 20.4 0.0 0.0 4.8 8.3 13.2 03/31/08 141,734 28 4 96 0 100 13.7 12.9 0.0 23.7 4.6 0.0 19.9 0.0 0.0 3.8 7.6 13.9 06/30/08 134,035 33 2 98 0 100 14.5 13.6 0.0 23.6 5.2 0.0 18.9 0.0 0.0 3.2 7.1 13.9 09/30/08 130,317 33 7 93 0 100 13.5 13.3 0.0 23.2 5.5 0.0 22.1 0.0 0.0 2.6 7.1 12.6 12/31/08 76,813 37 3 97 0 100 14.7 10.2 4.0 15.4 7.0 0.0 21.5 0.0 3.2 2.3 7.8 14.0 *Index 302,419 94 0 100 0 100 10.0 8.0 5.1 14.2 6.5 0.0 14.8 0.2 4.7 6.4 6.8 23.3

Index : Wilshire REIT Index

3 Tacoma Employees' Retirement System VV REIT Structural Characteristics Adelante Capital Mgmnt Quarter Ended 12/31/10

*Index 302,419 94 0 100 0 100 10.0 8.0 5.1 14.2 6.5 0.0 14.8 0.2 4.7 6.4 6.8 23.3

Index : Wilshire REIT Index

4 Tacoma Employees' Retirement System VV REIT Investment Characteristics Adelante Capital Mgmnt Quarter Ended 12/31/10

Growth Average $ Valuation Risk Quarter 5 Yrs Earn 5 Yrs Div Market Cap(Mil) P/E P/B YLD ROE Beta Debt/Eqt R Square 03/31/98 -0.8 -1.0 2,051 NA 27.7 5.0 19.9 1.39 0.56 0.07 06/30/98 8.0 3.2 2,277 12.1 3.6 5.3 4.0 1.47 0.54 0.07 09/30/98 2.6 2.3 1,674 11.0 4.4 6.4 3.1 1.68 0.49 0.17 12/31/98 -5.4 -0.8 1,794 10.4 3.2 7.6 5.2 1.53 0.45 0.15 03/31/99 -4.8 -0.5 1,740 9.4 3.5 7.3 6.0 0.47 0.44 0.18 06/30/99 -4.3 -0.9 1,938 11.2 2.9 6.7 6.9 0.47 0.41 0.14 09/30/99 -2.3 -0.5 1,831 10.6 2.4 7.5 8.0 0.53 0.40 0.17 12/31/99 -1.3 0.4 1,985 10.7 1.8 7.5 3.8 0.25 0.39 0.17 03/31/00 -1.3 0.6 2,067 11.0 1.8 7.4 2.1 0.24 0.36 0.19 06/30/00 -0.2 0.8 2,515 11.9 2.0 6.8 1.2 0.23 0.32 0.16 09/30/00 -2.3 0.8 2,901 9.8 2.1 6.4 -1.8 0.15 0.31 0.06 12/31/00 -0.7 1.1 3,145 10.0 1.8 6.5 -2.8 0.22 0.31 0.06 03/31/01 0.2 1.7 2,908 9.6 2.1 6.8 -2.9 0.24 0.27 0.07 06/30/01 -0.1 1.2 3,302 10.2 2.3 6.3 -4.2 0.20 0.30 0.06 09/30/01 -1.8 1.0 3,951 10.0 2.0 6.6 -3.7 0.29 0.35 0.06 12/31/01 -0.9 1.6 3,907 10.0 2.4 6.6 -9.0 0.22 0.20 0.06 03/31/02 -1.0 1.7 4,338 10.5 2.2 6.3 -8.8 0.24 0.19 0.07 06/30/02 -0.2 3.4 3,854 11.2 2.8 6.1 -4.0 0.28 0.19 0.06 09/30/02 -0.0 3.2 3,522 10.1 2.7 6.8 -3.0 0.32 0.20 0.07 12/31/02 0.2 3.1 3,418 9.7 2.7 7.0 -2.5 0.25 0.19 0.05 03/31/03 2.5 3.3 3,402 9.7 3.1 6.7 1.4 0.26 0.17 0.05 06/30/03 1.8 3.4 3,509 11.4 2.4 6.0 0.2 0.25 0.18 0.12 Wilshire REIT Index -4.4 0.5 9,427 115.5 2.1 3.5 2.9 1.53 1.89 0.53

P/B methodology changed 2Q03. See Glossary. 5 Tacoma Employees' Retirement System VV REIT Investment Characteristics Adelante Capital Mgmnt Quarter Ended 12/31/10

Growth Average $ Valuation Risk Quarter 5 Yrs Earn 5 Yrs Div Market Cap(Mil) P/E P/B YLD ROE Beta Debt/Eqt R Square 09/30/03 0.4 3.0 3,771 11.9 2.7 5.5 -0.8 0.17 0.15 0.03 12/31/03 0.3 3.3 3,907 13.3 2.9 5.3 -1.1 0.19 0.15 0.04 03/31/04 5.0 1.5 4,347 14.6 2.8 4.8 10.1 0.21 0.25 0.04 06/30/04 4.7 1.4 4,061 13.8 2.6 5.1 9.9 0.25 0.26 0.03 09/30/04 5.4 1.5 4,131 14.5 2.7 4.8 10.2 0.25 0.28 0.02 12/31/04 4.9 1.3 5,159 16.5 3.1 4.2 10.1 0.27 0.26 0.03 03/31/05 4.6 1.4 4,689 14.4 2.9 4.7 9.8 0.32 0.25 0.03 06/30/05 4.7 1.5 5,558 16.3 3.2 4.0 9.6 0.31 0.34 0.03 09/30/05 4.4 1.7 6,227 16.9 2.8 3.9 6.7 0.39 0.55 0.07 12/31/05 4.7 1.8 6,556 17.3 3.0 3.7 6.8 0.40 0.35 0.09 03/31/06 6.2 2.1 7,610 13.5 3.2 3.3 6.9 0.39 0.36 0.11 06/30/06 3.3 1.8 7,772 19.5 3.2 3.3 7.2 0.48 0.43 0.14 09/30/06 1.7 0.6 8,628 21.1 3.6 3.0 7.2 0.50 0.30 0.16 12/31/06 -1.8 5.1 10,188 22.0 4.2 2.8 7.4 0.50 1.20 0.17 03/31/07 5.4 0.5 10,918 85.6 3.5 2.8 9.2 0.54 0.47 0.19 06/30/07 1.9 7.7 9,785 57.4 3.5 3.1 11.3 0.62 1.18 0.18 09/30/07 2.5 7.2 10,184 51.9 3.5 3.1 11.1 0.66 1.19 0.14 12/31/07 2.2 7.3 8,345 41.4 2.9 3.9 10.8 1.11 1.20 0.35 03/31/08 4.4 8.3 8,506 48.3 2.6 4.0 11.0 1.03 1.24 0.32 06/30/08 6.1 8.0 7,884 51.5 2.5 4.3 12.3 1.17 1.20 0.42 09/30/08 5.7 7.2 7,719 50.1 2.4 4.7 12.3 1.11 1.22 0.39 12/31/08 5.0 6.9 4,795 37.6 1.4 6.0 12.6 1.49 1.17 0.54 Wilshire REIT Index -4.4 0.5 9,427 115.5 2.1 3.5 2.9 1.53 1.89 0.53

P/B methodology changed 2Q03. See Glossary. 6 Tacoma Employees' Retirement System VV REIT Investment Characteristics Adelante Capital Mgmnt Quarter Ended 12/31/10

Growth Average $ Valuation Risk Quarter 5 Yrs Earn 5 Yrs Div Market Cap(Mil) P/E P/B YLD ROE Beta Debt/Eqt R Square 03/31/09 1.2 5.8 3,441 28.9 0.9 9.1 11.7 1.46 1.20 0.52 06/30/09 1.4 5.4 5,118 33.1 1.4 6.0 10.0 1.53 1.09 0.57 09/30/09 1.0 5.2 6,528 59.3 1.8 4.5 8.9 1.52 1.14 0.59 12/31/09 1.3 5.2 7,251 NM 1.9 4.1 8.8 1.54 1.15 0.60 03/31/10 -1.6 3.4 8,190 80.4 2.5 3.6 6.8 1.53 0.87 0.59 06/30/10 -2.5 3.2 8,216 68.3 4.1 3.7 6.2 1.51 0.42 0.59 09/30/10 -2.6 3.4 9,390 NM 4.6 3.3 6.2 1.45 0.43 0.56 12/31/10 -5.3 -0.6 10,374 NM 2.4 3.2 4.0 1.43 1.19 0.57

Wilshire REIT Index -4.4 0.5 9,427 115.5 2.1 3.5 2.9 1.53 1.89 0.53

P/B methodology changed 2Q03. See Glossary. 7 Tacoma Employees' Retirement System VV REIT Return Analysis Adelante Capital Mgmnt Quarter Ended 12/31/10

Net Management Effect Total Equity Sector Stock Quarter Index* Return Return Timing Weighting Selection Trading Total 03/98 -1.00 0.07 0.07 0.00 NA NA NA 1.07 06/98 -4.17 -2.60 -2.60 0.00 NA NA NA 1.57 09/98 -10.63 -10.22 -10.22 0.00 0.45 0.71 -0.75 0.41 12/98 -2.11 0.64 0.64 0.00 0.37 1.16 1.22 2.75 1998 -17.01 -11.93 -11.93 0.00 NA NA NA 5.08 03/99 -4.10 -5.86 -5.86 0.00 0.65 -2.78 0.37 -1.76 06/99 10.56 12.51 12.51 0.00 0.07 2.97 -1.10 1.94 09/99 -8.27 -7.30 -7.30 -0.00 0.51 0.53 -0.06 0.97 12/99 0.16 0.95 0.95 0.00 0.64 0.48 -0.34 0.78 1999 -2.58 -0.89 -0.89 0.00 1.93 0.75 -0.98 1.70 03/00 3.00 4.49 4.49 0.00 0.46 1.43 -0.40 1.49 06/00 11.20 11.44 11.44 -0.00 0.63 0.12 -0.51 0.24 09/00 9.35 10.27 10.27 -0.00 0.96 1.10 -1.15 0.92 12/00 4.63 3.60 3.60 0.00 0.03 -0.07 -0.99 -1.03 2000 31.04 33.03 33.03 0.00 2.59 3.21 -3.81 1.98 03/01 -1.03 -2.51 -2.51 0.00 -1.97 0.45 0.03 -1.49 06/01 10.90 9.60 9.60 0.00 -0.18 -0.61 -0.52 -1.30 09/01 -2.40 0.35 0.35 0.00 1.56 1.61 -0.42 2.75 12/01 4.88 3.41 3.41 0.00 -1.55 0.56 -0.48 -1.47 2001 12.35 10.87 10.87 0.00 -2.36 2.36 -1.48 -1.48 03/02 8.37 6.44 6.44 -0.00 -1.69 0.25 -0.49 -1.93 06/02 4.61 4.83 4.83 -0.01 -0.12 0.27 0.07 0.22 09/02 -9.08 -7.98 -7.98 -0.00 -0.13 0.48 0.75 1.10 12/02 0.50 1.10 1.10 -0.00 -0.13 0.35 0.38 0.60 Index* : Wilshire REIT Index 8 Tacoma Employees' Retirement System VV REIT Return Analysis Adelante Capital Mgmnt Quarter Ended 12/31/10

Net Management Effect Total Equity Sector Stock Quarter Index* Return Return Timing Weighting Selection Trading Total 2002 3.58 3.80 3.81 -0.00 -2.02 1.41 0.84 0.22 03/03 1.26 1.67 1.67 -0.00 0.81 -0.91 0.51 0.41 06/03 12.10 11.02 11.02 -0.00 -0.74 0.30 -0.65 -1.09 09/03 9.93 9.62 9.62 0.00 -0.14 0.08 -0.25 -0.31 12/03 9.13 9.40 9.40 -0.00 -0.18 1.72 -1.28 0.27 2003 36.18 35.35 35.35 0.00 -0.20 1.37 -2.00 -0.83 03/04 12.09 12.79 12.79 -0.00 -0.32 1.76 -0.74 0.70 06/04 -5.41 -4.32 -4.32 0.00 0.32 0.60 0.17 1.09 09/04 8.28 7.54 7.54 0.00 0.15 -0.71 -0.18 -0.74 12/04 15.99 16.69 16.69 -0.00 -0.39 1.46 -0.36 0.70 2004 33.16 35.42 35.42 0.00 -0.19 3.76 -1.30 2.26 03/05 -7.30 -8.75 -8.75 0.00 -0.71 -1.83 1.09 -1.44 06/05 15.22 17.44 17.44 0.00 0.82 2.28 -0.88 2.22 09/05 3.94 4.32 4.32 -0.00 -0.27 0.89 -0.24 0.37 12/05 2.52 3.76 3.76 -0.00 -0.21 1.73 -0.28 1.23 2005 13.82 16.00 16.00 -0.00 -0.63 2.86 -0.05 2.18 03/06 15.79 16.22 16.22 -0.00 0.38 0.64 -0.58 0.43 06/06 -1.12 -0.70 -0.70 -0.00 0.25 0.27 -0.10 0.43 09/06 9.11 8.31 8.31 0.00 0.44 -0.88 -0.36 -0.80 12/06 8.85 9.72 9.72 -0.00 -0.57 1.98 -0.54 0.87 2006 35.97 37.15 37.15 -0.00 0.64 2.49 -1.96 1.17 03/07 3.74 3.67 3.67 -0.00 -0.09 0.60 -0.58 -0.07 06/07 -9.36 -8.64 -8.64 0.00 0.73 0.07 -0.08 0.73 09/07 1.42 1.69 1.69 -0.00 -0.76 1.46 -0.42 0.27 Index* : Wilshire REIT Index 9 Tacoma Employees' Retirement System VV REIT Return Analysis Adelante Capital Mgmnt Quarter Ended 12/31/10

Net Management Effect Total Equity Sector Stock Quarter Index* Return Return Timing Weighting Selection Trading Total 12/07 -13.54 -14.16 -14.16 0.00 -0.99 -0.92 1.29 -0.61 2007 -17.55 -17.32 -17.32 0.00 -0.98 0.84 0.38 0.23 03/08 2.14 1.34 1.34 -0.00 -0.37 -1.25 0.82 -0.79 06/08 -5.39 -5.58 -5.58 -0.00 0.70 -1.21 0.32 -0.20 09/08 4.78 -2.88 -2.88 -0.00 -2.34 -4.42 -0.90 -7.66 12/08 -39.95 -41.13 -41.13 0.00 -3.48 0.62 1.69 -1.18 2008 -39.20 -45.29 -45.29 -0.00 -4.35 -3.43 1.69 -6.09 03/09 -33.92 -32.55 -32.55 0.00 -0.40 1.18 0.59 1.37 06/09 31.66 32.05 32.05 -0.00 0.11 1.21 -0.94 0.39 09/09 35.42 30.59 30.59 -0.00 0.24 -2.91 -2.16 -4.83 12/09 9.15 8.71 8.71 0.00 0.41 -0.60 -0.25 -0.44 2009 28.60 26.43 26.43 0.00 0.06 -0.05 -2.18 -2.17 03/10 9.82 10.34 10.34 0.00 -0.66 1.16 0.02 0.52 06/10 -4.23 -2.49 -2.49 -0.00 0.48 0.98 0.28 1.74 09/10 13.35 13.38 13.38 0.00 0.16 0.39 -0.52 0.03 12/10 7.87 6.59 6.59 -0.00 0.08 -0.97 -0.39 -1.29 2010 28.60 30.02 30.02 0.00 0.16 1.96 -0.69 1.42

Index* : Wilshire REIT Index 10 Tacoma Employees' Retirement System VV REIT Return Analysis Adelante Capital Mgmnt Quarter Ended 12/31/10

Net Management Effect Total Equity Sector Stock Quarter Index* Return Return Timing Weighting Selection Trading Total

From Inception 8.44 8.53 8.53 -0.00 0.08 From 06/98 To Present 9.25 9.11 9.11 -0.00 -0.75 1.17 -0.57 -0.15 Avg Up Markets 9.17 8.90 8.90 -0.00 -0.27 Avg Down Markets -9.06 -8.54 -8.54 0.00 0.52 Index* : Wilshire REIT Index 11 Tacoma Employees' Retirement System VV REIT Sector Attribution Analysis Adelante Capital Mgmnt Quarter Ended 12/31/10

Portfolio Wilshire REIT Index Selection Sector Mkt Val % Return Mkt Val % Return Stock Sector Total Other 18.87 4.78 21.40 3.62 0.22 0.11 0.33 Apartments 18.06 10.58 14.77 10.70 -0.02 0.09 0.07 Storage 5.77 5.36 5.40 4.85 0.03 -0.01 0.02 Factory Outlet 0.00 0.00 0.00 -0.00 0.00 Mfg. Housing 0.00 0.20 10.67 0.00 -0.01 -0.01 Diversified 6.47 -1.85 7.48 -0.24 -0.10 0.08 -0.02 Health Care 3.88 -4.71 4.96 -1.20 -0.14 0.10 -0.04 Industrial 9.39 13.00 7.27 16.03 -0.28 0.17 -0.11 Hotel 2.74 23.48 5.79 18.36 0.14 -0.32 -0.18 Office 13.58 2.33 10.65 3.23 -0.12 -0.13 -0.26 Regional Retail 16.64 10.92 15.64 12.82 -0.32 0.05 -0.27 Local Retail 4.61 2.61 6.43 10.76 -0.38 -0.05 -0.43 Quarter Total 100.00 6.94 100.00 7.87 -0.97 0.08 -0.89

Stock Selection Return Attribution = [ Portfolio Market Value Sector Percent ] x [ Portfolio Sector Return - Index Sector Return]

Sector Selection Return Attribution = [ Portfolio Sector Percent - Index Sector Percent ] x [ Index Sector Return - Index Total Return ]

12 Tacoma Employees' Retirement System VV Equity Summary Statistics Adelante Capital Mgmnt Quarter Ended 12/31/10

10 Largest Holdings 10 Best Performers Name %Port $(000) Name %Port %Return Simon Ppty Group Inc 10.1 4,514 Post Pptys Inc 2.1 30.73 Equity Residential P 6.8 3,021 Hersha Hospitality T 1.1 28.38 Vornado Rlty Tr 6.5 2,891 Host Marriott Corp N 3.3 23.48 Boston Properties In 6.3 2,821 Amb Property Corp. 4.2 22.13 Public Storage Inc 5.6 2,485 Starwood Hotels&Reso 3.2 16.25 Avalonbay Cmntys Inc 4.5 2,035 Taubman Ctrs Inc 2.2 14.69 Amb Property Corp. 4.2 1,861 Eastgroup Ppty Inc 1.3 14.64 Hcp Inc 4.1 1,832 Saul Ctrs Inc 1.7 13.79 Nationwide Health Pp 3.4 1,528 Macerich Co 2.6 11.48 Host Marriott Corp N 3.3 1,482 Kilroy Rlty Corp 1.5 11.11

Portfolio Characteristic Distribution (%) 10 Worst Performers Quartile Mkt. Cap P/E Yield Name %Port %Return 1st 74.0 36.5 4.4 Coresite Rlty Corp 0.5 -15.98 2nd 13.6 60.5 18.2 Corporate Office Ppt 2.8 -5.23 3rd 10.7 3.1 50.4 Nationwide Health Pp 3.4 -4.71 4th 1.7 0.0 26.9 Federal Realty Invt 1.9 -3.75 Wilshire REIT Index Vornado Rlty Tr 6.5 -1.85 Liberty Ppty Tr 1.0 1.56 25th Percentile 3,601,638 75.8 5.1 Equity Lifestyle Ppt 1.7 3.21 50th Percentile 1,918,994 34.3 3.9 Hcp Inc 4.1 3.56 75th Percentile 824,983 -21.6 2.5 Boston Properties In 6.3 4.18 Alexandria Real Esta 2.4 5.30

13 Tacoma Employees' Retirement System VV Equity Portfolio Activity Adelante Capital Mgmnt Quarter Ended 12/31/10

Additions Deletions Security Name Quantity $(000) New Security Name Quantity $(000) Eliminated Ventas Inc 25,000 1,312 * Digital Rlty Tr Inc 18,100 1,117 * General Growth Pptys 55,600 861 * Brandywine Rlty Tr 57,000 698 * Developers Diversifi 49,900 703 * Douglas Emmett Inc 34,600 606 * Corporate Office Ppt 12,400 433 Liberty Ppty Tr 14,800 472 Lasalle Hotel Pptys 15,600 412 * Duke-Weeks Realty Co 39,000 452 * Boston Properties In 4,200 362 Starwood Hotels&Reso 5,700 346 American Campus Cmnt 9,700 308 Federal Realty Invt 4,300 335 Vornado Rlty Tr 3,146 262 Diamondrock Hospital 33,687 320 * Amb Property Corp. 7,000 222 Taubman Ctrs Inc 6,200 313 Associated Estates R 11,900 182 Glimcher Rlty Tr 41,600 256 * Hersha Hospitality T 26,200 173 Macerich Co 5,000 237 Extra Space Storage 8,000 139 Simon Ppty Group Inc 900 90 Hcp Inc 2,500 92 Public Storage Inc 300 30 Coresite Rlty Corp 6,400 87 Eastgroup Ppty Inc 700 30 Post Pptys Inc 2,400 87 Essex Ppty Tr Inc 200 23 Alexandria Real Esta 1,000 73 Equity Residential P 400 21 Host Marriott Corp N 4,000 71 Equity Lifestyle Ppt 200 11 Avalonbay Cmntys Inc 500 56 Regency Ctrs Corp 200 8 Nationwide Health Pp 100 4 Saul Ctrs Inc 100 5

14 Tacoma Employees' Retirement System VV REIT Holdings Adelante Capital Mgmnt Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Apartments Associated Estates R 23,600 35,500 13.980 15.290 330 543 0.8 1.2 10.69 Avalonbay Cmntys Inc 17,582 18,082 103.930 112.550 1,827 2,035 4.4 4.5 9.15 BRE Properties 18,645 18,645 41.500 43.500 774 811 1.9 1.8 5.74 Equity Residential P 58,550 58,150 47.570 51.950 2,785 3,021 6.7 6.8 10.22 Essex Ppty Tr Inc 10,545 10,345 109.440 114.220 1,154 1,182 2.8 2.6 5.31 Post Pptys Inc 23,896 26,296 27.920 36.300 667 955 1.6 2.1 30.73 7,537 8,546 18.1 19.1 10.58 Diversified Vornado Rlty Tr 31,550 34,696 85.530 83.330 2,698 2,891 6.5 6.5 -1.85 2,698 2,891 6.5 6.5 -1.85 Hotel Host Marriott Corp N 78,942 82,942 14.480 17.870 1,143 1,482 2.7 3.3 23.48 Lasalle Hotel Pptys 0 15,600 23.390 26.400 0 412 0.0 0.9 NA 1,143 1,894 2.7 4.2 23.48 Industrial Amb Property Corp. 51,690 58,690 26.470 31.710 1,368 1,861 3.3 4.2 22.13 Duke-Weeks Realty Co 39,000 0 11.590 12.460 452 0 1.1 0.0 9.06 Eastgroup Ppty Inc 14,900 14,200 37.380 42.320 557 601 1.3 1.3 14.64 Kilroy Rlty Corp 18,998 18,998 33.140 36.470 630 693 1.5 1.5 11.11 Liberty Ppty Tr 28,600 13,800 31.900 31.920 912 440 2.2 1.0 1.56 3,919 3,595 9.4 8.0 13.00

15 Tacoma Employees' Retirement System VV REIT Holdings Adelante Capital Mgmnt Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Office Alexandria Real Esta 13,900 14,900 70.000 73.260 973 1,092 2.3 2.4 5.30 Boston Properties In 28,570 32,770 83.120 86.100 2,375 2,821 5.7 6.3 4.18 Brandywine Rlty Tr 57,000 0 12.250 11.650 698 0 1.7 0.0 -3.72 Corporate Office Ppt 22,936 35,336 37.310 34.950 856 1,235 2.1 2.8 -5.23 Sl Green Rlty Corp 12,060 12,060 63.330 67.510 764 814 1.8 1.8 6.76 5,665 5,962 13.6 13.3 2.33 Local Retail Developers Diversifi 0 49,900 11.220 14.090 0 703 0.0 1.6 NA Federal Realty Invt 15,000 10,700 81.660 77.930 1,225 834 2.9 1.9 -3.75 Saul Ctrs Inc 16,635 16,535 41.950 47.350 698 783 1.7 1.7 13.79 1,923 2,320 4.6 5.2 2.61 Regional Retail Glimcher Rlty Tr 41,600 0 6.150 8.400 256 0 0.6 0.0 38.25 Macerich Co 29,431 24,431 42.950 47.370 1,264 1,157 3.0 2.6 11.48 Simon Ppty Group Inc 46,275 45,375 92.740 99.490 4,292 4,514 10.3 10.1 8.13 Taubman Ctrs Inc 25,420 19,220 44.610 50.480 1,134 970 2.7 2.2 14.69 6,945 6,642 16.6 14.8 10.92 Storage Public Storage Inc 24,800 24,500 97.040 101.420 2,407 2,485 5.8 5.6 5.36 2,407 2,485 5.8 5.6 5.36 Health Care Nationwide Health Pp 41,900 42,000 38.670 36.380 1,620 1,528 3.9 3.4 -4.71

16 Tacoma Employees' Retirement System VV REIT Holdings Adelante Capital Mgmnt Quarter Ended 12/31/10

Shares Price Mkt Value $(000) % Portfolio Buy & Hold Name 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 9/30/10 12/31/10 Return Health Care (cont.) 1,620 1,528 3.9 3.4 -4.71 Other American Campus Cmnt 7,800 17,500 30.440 31.760 237 556 0.6 1.2 5.43 Coresite Rlty Corp 9,000 15,400 16.390 13.640 148 210 0.4 0.5 -15.98 Diamondrock Hospital 33,687 0 9.490 12.000 320 0 0.8 0.0 26.45 Digital Rlty Tr Inc 18,100 0 61.700 51.540 1,117 0 2.7 0.0 -15.63 Douglas Emmett Inc 34,600 0 17.510 16.600 606 0 1.5 0.0 -4.63 Equity Lifestyle Ppt 13,800 13,600 54.480 55.930 752 761 1.8 1.7 3.21 Extra Space Storage 21,200 29,200 16.040 17.400 340 508 0.8 1.1 9.11 General Growth Pptys 0 55,600 15.600 15.480 0 861 0.0 1.9 NA Hcp Inc 47,300 49,800 35.980 36.790 1,702 1,832 4.1 4.1 3.56 Hersha Hospitality T 45,882 72,082 5.180 6.600 238 476 0.6 1.1 28.38 Regency Ctrs Corp 22,200 22,000 39.470 42.240 876 929 2.1 2.1 8.21 Starwood Hotels&Reso 29,290 23,590 52.550 60.780 1,539 1,434 3.7 3.2 16.25 Ventas Inc 0 25,000 51.570 52.480 0 1,312 0.0 2.9 NA 7,874 8,878 18.9 19.8 4.78

17 Tacoma Employees' Retirement System VV Fund Return Table Quarter Ended 12/31/10

Inception Inception Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 Years 10 Years Date Return Northern Trust S&P 500 10.76 23.19 9.24 15.10 3/31/09 32.74 Standard & Poor's 500 10.76 23.27 9.18 15.05 3/31/09 32.43

HarbourVest Dover Street VII 7.67 21.18 19.32 25.82 3/31/09 10.99

HarbourVest Int'l Private Equity VI 1.75 -15.63 6/30/10 -15.63

Private Equity Composite 10.57 23.04 9.56 15.44 3/31/09 32.34 Private Equity Custom Benchmark 10.89 22.02 8.95 14.87 3/31/09 32.33

1 TACOMA EMPLOYEES’ RETIREMENT SYSTEM POLICIES & BENCHMARKS

TOTAL FUND POLICY

Weighted Policy Return = Policy Targets x Benchmark Returns

4th Qtr 2010: 23.50% Russell 3000 23.50% International Equity Custom Benchmark 7.00% ML US High Yield B/BB Constrained 28.00% Barclays US Aggregate Bond 4.00% Wilshire REIT 4.00% NCREIF Property Index 10.00% Private Equity Custom Benchmark

April, 2010: 23.50% Russell 3000 23.50% International Equity Custom Benchmark 7.00% ML US High Yield B/BB Constrained 28.00% Barclays US Aggregate Bond 8.00% Wilshire REIT 10.00% Private Equity Custom Benchmark

1st Qtr 2010: 21.00% Russell 3000 21.00% International Equity Custom Benchmark 15.00% ML US High Yield B/BB Constrained 25.00% Barclays US Aggregate Bond 8.00% Wilshire REIT 10.00% Private Equity Custom Benchmark 2nd Qtr 2009: 21.00% S&P 500 21.00% International Equity Custom Benchmark 15.00% ML High Yield Master II 25.00% Barclays US Aggregate Bond 8.00% Wilshire REIT 10.00% Private Equity Custom Benchmark

February through April, 2009: 21.00% S&P 500 21.00% MSCI ACWI x-US (N) 15.00% ML High Yield Master II 25.00% Barclays US Aggregate Bond 8.00% Wilshire REIT 10.00% Private Equity Custom Benchmark

3rd Qtr 2006: 40.00% S&P 500 15.00% MSCI ACWI x-US (N) 10.00% ML High Yield Master II 20.00% Barclays US Aggregate Bond 15.00% Wilshire REIT

2nd Qtr 2006: 40.00% S&P 500 15.00% MSCI ACWI x-US (N) 7.50% ML High Yield Master II 22.50% Barclays US Aggregate Bond 15.00% Wilshire REIT

1st Qtr 2006: 40.00% S&P 500 15.00% MSCI Eur/Pac 50/50 (N) 5.00% ML High Yield Master II 25.00% Barclays US Aggregate Bond 15.00% Wilshire REIT 4th Qtr 2005: 40.00% S&P 500 15.00% MSCI Eur/Pac 50/50 (N) 2.50% ML High Yield Master II 27.50% Barclays US Aggregate Bond 15.00% Wilshire REIT

1st Qtr 2003: 40.00% S&P 500 16.00% MSCI Eur/Pac 50/50 (N) 29.00% Barclays US Aggregate Bond 15.00% Wilshire REIT

1st Qtr 2001: 40.00% S&P 500 16.00% MSCI Eur/Pac 50/50 (N) 29.00% Citigroup LPF 15.00% Wilshire Real Estate Securities Index

2nd Qtr 1997: 40.00% S&P 500 16.00% MSCI Eur/Pac 50/50 (N) 29.00% Citigroup LPF 12.00% Wilshire Real Estate Securities Index 3.00% Wilshire Real Estate Fund

1st Qtr 1980: 40.00% S&P 500 16.00% MSCI Eur/Pac 50/50 (N) 29.00% Citigroup LPF 15.00% Wilshire Real Estate Fund . Actuarial Return

1st Quarter 2003 to Present = 7.75% Annually 1st Quarter 2001 to 4th Quarter 2002 = 8.00% Annually 2nd Quarter 1997 to 4th Quarter 2000 = 7.50% Annually 3rd Quarter 1979 to 1st Quarter 1997 = 7.00% Annually

. Expected Return

1st Quarter 2001 to Present = 8.40% Annually 2nd Quarter 1997 to 4th Quarter 2000 = 9.10% Annually 2nd Quarter 1979 to 1st Quarter 1997 = 10.40% Annually

DOMESTIC EQUITY

. Domestic Equity Composite Benchmark = 100% Russell 3000 (1Q10 – Present)

100% S&P 500 (4Q84 – 4Q09)

. Northern Trust S&P 500 Composite (Lending & Non-Lending Funds) Benchmark = 100% S&P 500 (1Q91 – Present)

. Northern Trust Large Cap Growth Benchmark = 100% Russell 1000 Growth (2Q09 – Present) . Northern Trust Small Small Cap Core Benchmark 100% Russell 2000 (1Q91 – Present)

. INTECH Benchmark = 100% S&P 500 (1Q07 – Present)

Performance Objective = 100% S&P 500 + 1.00% (1Q07 – Present)

. Research Affiliates Benchmark = 100% S&P 500 (1Q07 – Present)

Performance Objective = 100% S&P 500 + 1.00% (1Q07 – Present)

INTERNATIONAL EQUITY

. International Equity Composite Custom Benchmark = 40% MSCI EAFE Index (N) (1Q09 – Present) 40% MSCI EAFE Hedged (N) 20% MSCI EM Index (N)

100% MSCI ACWI x-US (N) (2Q06 – 4Q08)

100% MSCI EAFE Index (N) (2Q88 – 1Q06)

. Northern Trust EAFE Index Benchmark = 100% MSCI EAFE Index (N) (2Q09 – Present) . Northern Trust EAFE Index (Hedged) Benchmark = 100% MSCI EAFE Index Hedged (N) (2Q09 – Present)

. Northern Trust Emerging Markets Benchmark = 100% MSCI EM Index (N) (2Q09 – Present)

. TT International Benchmark = 100% MSCI EAFE Index (N) (2Q99 – Present)

Performance Objective = 100% Benchmark + 2.60% (4Q04 – Present)

Performance Objective = 100% Benchmark + 2.00% (2Q99 – 3Q04)

DOMESTIC FIXED

. Total Fixed Income Composite Benchmark = 80.00% Barclays US Aggregate Bond (2Q10 – Present) 20.00% ML US High Yield BB/B Constrained

62.50% Barclays US Aggregate Bond (1Q10 – 1Q10) 37.50% ML US High Yield BB/B Constrained

62.50% Barclays US Aggregate Bond (2Q09 – 4Q09) 37.50% ML High Yield Master II

66.67% Barclays US Aggregate Bond (3Q06 – 1Q09) 33.33% ML High Yield Master II

75.00% Barclays US Aggregate Bond (2Q06 – 2Q06) 25.00% ML High Yield Master II 83.33% Barclays US Aggregate Bond (1Q06 – 1Q06) 16.67% ML High Yield Master II

91.67% Barclays US Aggregate Bond (4Q05 – 4Q05) 8.33% ML High Yield Master II

100.00% Barclays US Aggregate Bond (1Q03 – 3Q05)

100.00% Citigroup LPF (4Q81– 4Q02)

. Metropolitan West Benchmark = 100% Barclays US Aggregate Bond (2Q02 – Present)

Performance Objective = 100% Benchmark + 0.75% (2Q02 – Present)

. Post Advisory Benchmark = 100% ML US High Yield B/BB Const. (1Q10 – Present)

Benchmark = 100% ML High Yield Master II (4Q05 – 4Q09)

Performance Objective = 100% Benchmark + 1.75% (4Q05 – Present)

REAL ESTATE

. Real Estate Composite Benchmark = 50% Wilshire REIT Index (4Q10 – Present) 50% NCREIF Property Index 100% Wilshire REIT Index (2Q88 – 3Q10)

. Adelante Capital Management Benchmark = 100% Wilshire REIT Index (1Q98 – Present)

Performance Objective = 100% Benchmark + 1.00% (1Q98 – Present)

PRIVATE EQUITY

. Private Equity Composite Custom Benchmark = Dynamically calculated based on actual weights of the private equity investments and the private equity source fund (1Q09 – Present)

. Private Equity Parking Fund Benchmark = 100% S&P 500 (1Q09 – Present)

GLOSSARY VV

As Allocated to Managers - The percent of total Trust assets held by the Interest Rate Anticipation - The portion of net management effect which individual managers. The percentages are also summarized by manager is attributable to deviation from the duration of the benchmark. category, i.e. Domestic Equity Managers, etc. Investment Gain/Loss - The investment income and realized or unrealized As Invested by Managers - The percent of total Trust assets that each increase (decrease) in market value of a portfolio for the time period. manager holds in each asset class. The percentages are also summarized by manager category. Investment Fees - Amounts paid to investment managers as investment management fees. Beta - A measure of relative volatility. A beta over 1.0 indicates above- market volatility; below 1.0, less volatility. Market Capitalization - The sum of the market value of outstanding common stock of a company. Current Yield - The stated coupon rate of a bond divided by its current market price. Maturity - The date on which a loan, bond, mortgage or other debt/security becomes due and is to be repaid. Distributions & Administrative Fees - Amounts withdrawn from the trust for the payment of benefits or non-manager fees. Median Market Capitalization - The market capitalization that exceeds one half of the values in a population and which is exceeded by the other DBT/EQ - Debt to equity ratio. A measure of the relative amount of half of the values. The median has a percentile rank of 50. funds provided by lenders and owners. Net Contribution - The total amount contributed to the trust during the Debt / Equity Ratio = Long Term Debt quarter. It includes amounts contributed to the managers’ accounts and Shareholders’ Equity amounts transferred within the trust from the managers’ accounts. Amounts withdrawn from the trust are not reflected in this column, since Effective Duration - An option-adjusted measure of the sensitivity of the they are included in "Distributions & Administrative Fees" or "Investment portfolio to changes in interest rates. Fees."

Equity Yield - The ratio of the level of current income from dividends to Net/Real Return - A client or manager’s total return adjusted for inflation the most recent share price. by using the Consumer Price Index.

Equity Yield = Indicated Annual Dividend Stock Price

GLOSSARY VV

ROE - Return on equity; return to stockholders measured by relating P/B - Price to book ratio, the current market price of a stock divided by the profits to stockholder’s equity. previous year’s book value per share. ROE = Net Profit After Tax P/B = Market Price of Common Stock Stockholders’ Equity Book Value per Share Sector/Issue - The portion of net management effect which is attributable Portfolio P/B is computed as the reciprocal of the value-weighted to a manager’s ability to choose bond market sectors and individual issues summation of the individual stocks’ B/Ps. that outperform the market.

P/E - Price/earnings ratio, the current market price of a stock divided by Sector Weighting - The portion of net management effect which is the previous year’s earning per share. attributable to a manager’s ability to allocate assets across market sectors.

P/E = Market Price of Common Stock Stock Selection - The portion of net management effect which is attributable Last 12 months' EPS to a manager’s ability to choose securities that outperform the market. Portfolio P/E is computed as the reciprocal of the value-weighted summation of the individual stocks’ E/Ps. Style - Measures the return impact of a manager’s investment style according to the selected index. Performance Comparison - Data for Wilshire Associates Universe Comparison Service is supplied by Wilshire’s Manager Universe Database Timing - The portion of net management effect which is attributable to a and by Wilshire’s Cooperative Universe Service. manager’s ability to use cash in anticipation of falling markets.

Quality - Weighted portfolio quality rating ranked as follows: Total Fund Attribution Return Contribution - The exhibit can be run with or without a Universe Allocation. The formulas below assume a GOV = 5.00 - 4.5 AAA = 4.49 - 3.5 Universe Allocation. If the exhibit is run without a Universe Allocation AA = 3.49 - 2.5 A = 2.49 - 1.5 the relevant return contribution is included in the Strategic Policy BAA = 1.49 - 0.5

R Square - The percent diversification relative to the market. The higher Universe Allocation = the number (up to 1.0), the more diversified. (Universe Return * Universe Allocation) / 100.0

GLOSSARY VV

Strategic Policy = ((1.0 + (Policy Return * Policy Allocation / 100.0)/100.0) / Years To Effective Maturity - The time remaining in years until the (1.0 + (Universe Return * Universe Allocation / 100.0)) - 1.0) * 100.0 bond’s last payment of interest and principal, taking into account prepayment contingencies of the bond. Actual Allocation = ((1.0 + (Actual Allocation * Policy Return / 100.0)/100.0) / Yield To Effective Maturity - The option-adjusted yield provided by a (1.0 + (Policy Allocation * Policy Return / 100.0)) - 1.0) * 100.0 bond to its maturity date.

Active Management = ((1.0 + (Actual Return * Actual Allocation / 100.0)/100.0) / (1.0 + (Policy Return * Actual Allocation / 100.0)) - 1.0) * 100.0

Actual Return = (Actual Return * Actual Allocation) / 100.0

Total Net Management Effect - Measures the added return produced by a manager.

Trading Effect - Measures the impact of quarterly trading on portfolio returns, determined by comparing the actual portfolio return with that of the buy-and-hold portfolio. The buy-and-hold return is used to illustrate the results that would have been obtained if the manager had maintained the initial holdings throughout the period.

Turnover - The rate at which securities within a portfolio are exchanged for other securities, defined as the lesser of sales or purchases during a specified period divided by the average market value.

Equity Turnover = Lesser of Equity Purchases or Sales Average Equity Market Value

GLOSSARY VV

Wilshire Equity Sectors Global Industry Classification Standard Sectors CGD Capital Goods The Global Industry Classification Standard (GICS) was developed by and CDU Consumer Durables is the exclusive property of Morgan Stanley Capital International Inc. and CND Consumer Non-Durables Standard & Poor’s. GICS is the service mark of MSCI and S&P and has ENR Energy been licensed for use by Wilshire Associates. FIN Finance M&S Materials and Services CDI Consumer Discretionary TEC Technology CST Consumer Staples TRN Transportation ENR Energy UTL Utilities FIN Financials HTH Healthcare IND Industrials INF Information Technology MAT Materials TEL Telecommunication Services UTL Utilities Wilshire International Sectors Fixed Income Sectors ENR Energy Maturity Sector Analysis MAT Materials CAP Capital Equipment FIN Finance CON Consumer Goods FOR Foreign (Yankee Bonds) SRV Services GA Treasuries & non-mortgage government agencies FIN Finance IND Industrial MIN Multi-Industry MISC Miscellaneous, cash and cash equivalents GMN Gold Mines MTGE Government National Mortgage Association (GNMA), MIS Miscellaneous Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), and corporate mortgages TRAN Transportation UTL Utilities