agenda · 2017-02-23 · 3 9. approve meetings for 2017 a. first quarter – february 23, 2017 b....

Gwinnett County, Georgia Retirement Plans Management Committee

February 23, 2017, Regular Meeting 8:00 AM

Gwinnett Justice and Administration Center, Conference Room C

Agenda

1. Call to Order Chairman

2. Approval of Agenda * Chairman

3. Approval of Minutes * Chairman December 1, 2016 Meeting

4. Performance Reports – Fund Reports

a. 4th Quarter Reports *** UBS i. UBS House View – December 2016

ii. Investment Strategy Guide iii. DB Performance Report iv. Asset Allocation Review v. Manager Status and Watch List

vi. Downgraded Bonds vii. Fee Schedule – 4th Quarter

viii. DC Performance Report ix. Gwinnett DC Alert Summary

b. 4th Quarter Reports *** Empower

i. Executive Summary Retirement ii. Plan Review

iii. Stable Value Report iv. Managed Account

5. Review Assumed Rate of Return *** Cavanaugh-

MacDonald

6. Investment Committee Reports * Mike Ludwiczak

a. Change to DB Investment Policy Statement b. Class Action Lawsuit-Alexion Pharmaceuticals, Inc.

7. Past Quarter Participation and Education Reports ***

a. Participation Numbers Sheryl Dallas b. Education Update Angel Mario

8. Vendor Renewals * Sheryl Dallas

a. Attorney b. Actuarial Services

9. Next Meeting

10. Public Comments **

11. Adjournment * Chairman

*Action Items **Speakers wishing to address the RPMC must report to the Clerk of the Committee prior to the meeting being called to order. Speakers are limited to 3 minutes or less. ***Information items requiring no action.

1

Gwinnett County, Georgia Retirement Plans Management Committee

December 1, 2016 Regular Meeting 8:00 AM

Gwinnett Justice and Administration Center, Conference Room C Unofficial Minutes

Members Present: Glenn Stephens, Jim Underwood, Ashley Stinson, Scott Fuller, Maria Woods, Mindy Bayreuther, Rick Cost Staff Present: Sheryl Dallas, Debbi Davidson, Mike Ludwiczak, Raechell Dickinson, Michael Poole Others Present: UBS – Allen Wright, Ray Vuicich; Empower Retirement – Eric Sanderson, Angel Mario;

Morris, Manning & Martin ‐ Ed Emerson

1. Call to Order Chairman Jim Underwood called the meeting to order at 8:06 AM.

2. Adoption of Agenda

Rick Cost made a motion to adopt the agenda and Glenn Stephens seconded. (Vote 7 ‐ 0)

3. Approval of Minutes ‐ August 25, 2016 Scott Fuller made a motion to approve the minutes for the August 25, 2016, meeting and Ashley

Stinson seconded. (Vote 7 ‐ 0)

4. Performance Reports – Fund Reports ‐ UBS a. 3rd Quarter Reports

i. UBS House View – November 2016 ii. DB Performance Report iii. Manager Status and Watch List iv. Downgraded Bonds v. Fee Schedule – 3rd Quarter vi. UBS Significant Media Events vii. DC Performance Report viii. Gwinnett DC Alert Summary

b. 3rd Quarter Reports – Empower Retirement

i. Executive Summary ii. Plan Review iii. Stable Value Report iv. Transition from Profile Series to Target Date Funds

2

v. Managed Account Update

5. Investment Committee Reports a. Large Cap Value Managers Recommendation

Mike Ludwiczak presented the Investment Committee’s recommendation to add The London Company as a Large Cap Value Manager in the Defined Benefit Plan in order to comply with the Investment Policy Statement requirements for allocation of assets, and reallocation of the assets in the Defined Benefit Plan portfolio under Large Cap Domestic Equity as follows: Large Cap Value: Barrow Hanley 5.75%

The London Company 5.75% Large Cap Core: BlackRock Equity Index Fund F 2.50% Large Cap Growth: Columbia Management 5.50%

TCS Institutional 5.50% Scott Fuller made a motion to adopt the Investment Committee’s recommendation for the addition of The London Company as a Large Cap Value Manager with the reallocation of portfolio assets as described and Maria Woods seconded. (Vote 7 ‐ 0)

b. Discussion of Proxies

Mike Ludwiczak presented the Investment Committee’s recommendation to amend the

Investment Policy Statement for the Defined Benefit Plan (the “IPS”) to add a process for voting

certain investments funds that are not the responsibility of an Investment Manager (e.g.,

mutual funds). Currently, the IPS only provides a process for Investment Managers to vote all

proxies. It was recommended that, in such case, the Investment Committee will determine the

proper voting of proxies related to the applicable investment in a similar process as described in

the Investment Policy Statement for the 401(a) and 457 plans. An amendment to the IPS for

the proxy voting process will be presented at the next meeting.

c. Georgia Association of Public Pension Trustee School

6. Past Quarter Participation and Education Reports a. Participation Numbers b. Education Update

7. Vendor Renewals

a. Renewal DC Advisors Mindy Bayreuther made a motion to renew the contract with UBS and Ashley Stinson seconded. (Vote 7‐0)

8. Next Year’s Goal Setting

3

9. Approve Meetings for 2017 a. First Quarter – February 23, 2017 b. Second Quarter – May 25, 2017 c. Third Quarter – August 24, 2017 d. Fourth Quarter – November 30, 2017

Glenn Stephens made a motion to accept the 2017 meeting dates and Ashley Stinson seconded. (Vote 7 ‐ 0)

10. Next Meeting – February 23, 2017

11. Public Comments

12. Adjournment Scott Fuller made a motion to adjourn and Glenn Stephens seconded. (Vote 7 ‐ 0)

The meeting adjourned at 10:28 a.m.

February 2017

UBS House View: Presentation

This report has been prepared by UBS Financial Services Inc. (UBS FS).Please see important disclaimers and disclosures beginning at the end of this document.

Core message

1

Overview

• Globally diversified portfolios have performed well despite market risks such as Brexit and the US election

• US economic data continues to advance, and emerging markets are stabilizing

• A Trump presidency may add to growth and inflation, which are already poised to accelerate due to fading headwinds

• Monetary policy continues to normalize but remains supportive

• We continue to recommend an overweight to stocks over bonds; the US is our preferred equity region

• Within fixed income, we prefer Treasury Inflation Protected Securities andhigh yield corporate bonds over standard government bonds

Core message

Setting the stage

3

What has happened recently?Markets continue to make new gains amidst political uncertainty

Source: Bloomberg, UBS, as of 30 January 2017.

1,700

1,800

1,900

2,000

2,100

2,200

2,300

2,400

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17

Jan 4 U.S. stocks suffer worst first trading day of the year since 2001

Jan 7 Circuit breakers halt trading in Chinese stocks for the second time during the week

Jan 19 WTI crude oil drops below $30 per barrel

Jan 29 Bank of Japan cuts benchmark interest rate below zero

Feb 5 The US unemploy-ment rate falls below 5% for the first time in 12 years

Feb 16 A tentative agreement is announced between Saudi Arabia, Russia, Qatar, and Venezuela to freeze oil outputs at January levels

Mar 1 Stocks surge almost 2.4% on upbeat US manufacturing data and a surge in oil prices

Mar 9 WTI crude climbes back over USD 40/bbl

Mar 10 ECB announces latest stimulus package including cuts to the deposit rate, expansion of its QE program, and introduction of a second round of TLTROs

Mar 22 Terrorist attacks take place in Brussels

Mar 31 S&P 500 rises to its highest level of the Q1 on the last day of the quarter

Apr 18 OPEC and non-OPEC producers failed to reach an agreement to freeze oil production at their meeting in Doha

Apr 27 Federal Reserve announces their decision to leave interest rates unchanged, although policy statement leaves the door open to a possible June rate hike

May 26 Crude oil breaks the USD 50/bbl threshold for the first time in 2016

June 2 S&P 500 rises back above 2,100 to its highest level in 7 months

June 24 The UK votes to leave the European Union

July 8 Jobs report shows strong rebound with 287,000 net positions added in June

July 29 US GDP report shows 1.2% annual growth rate in Q2, far below economists estimates of 2.6% growth

Aug 4 Bank of England announces decision to cut interest rates by 25 basis points

Sep 21 The Federal Reserve chooses to keep its interest rate target unchanged

Sep 26 First 2016 presidential debate

Sep 28 Oil prices nearly 5% on rumors of an OPEC production freeze

Oct 19 Third and final presidential debate

Oct 28 FBI Director James Comeyre-opens Clinton e-mail probe

Nov 8 Donald Trump is elected President

Nov 23 The S&P 500 hits a new all-time high

Dec 23 US consumer sentiment hits 12-year high

Dec 14 The Federal Reserve increases its target rate by 25bps

Jan 20 President Donald Trump is inaugurated

Jan 25 The Dow Jones Industrial Average hits 20,000 milestone

4

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Highest return 66.5% 13.2% 7.2% 11.5% 55.8% 25.6% 34.0% 32.1% 39.4% 12.4% 78.5% 26.9% 10.7% 18.2% 38.8% 13.2% 3.3% 21.3% 6.2%

27.0% 11.7% 5.3% 9.6% 47.3% 20.3% 13.5% 26.3% 11.2% -2.5% 58.2% 18.9% 9.0% 17.3% 33.1% 9.1% 0.9% 17.1% 3.4%

21.3% 2.3% 5.1% 0.1% 38.6% 18.3% 8.3% 18.4% 8.7% -20.6% 31.8% 16.1% 5.0% 16.4% 22.8% 5.0% 0.9% 12.1% 2.7%

20.9% -3.0% 2.5% -1.4% 29.9% 11.4% 6.3% 15.5% 8.4% -26.2% 28.4% 15.1% 1.7% 16.3% 8.4% 4.9% -0.8% 11.2% 1.8%

13.1% -5.9% -2.6% -6.2% 29.0% 11.1% 4.6% 12.0% 5.8% -33.8% 27.2% 10.2% 1.5% 15.8% 7.4% 4.9% -2.0% 6.0% 1.5%

2.4% -7.8% -2.8% -15.9% 22.3% 11.0% 3.5% 11.8% 3.4% -37.6% 25.7% 7.8% -4.2% 11.0% -2.6% 2.5% -4.4% 1.0% 1.0%

-2.1% -14.2% -12.4% -20.5% 5.3% 4.5% 2.7% 4.8% 1.9% -43.4% 12.9% 5.5% -12.1% 6.8% -2.6% -2.2% -4.5% 1.0% 0.5%

Lowest return -2.2% -30.8% -21.4% -21.7% 2.4% 3.5% 2.7% 3.5% -1.6% -53.3% -2.2% 2.4% -18.4% 2.0% -2.6% -4.9% -14.9% 0.2% 0.1%

How have asset classes performed?

Source: Bloomberg, UBS, as of 27 January 2017.Note: The Moderate Diversified Portfolio performance calculations are based on the current Strategic Asset Allocation (SAA) for a moderate risk profile investor in a taxable portfolio without non-traditional assets. It doesn't take into account any prior SAA for this investor profile and includes time periods before the SAA was created. See the latest UBS House View: Investment Strategy Guide (ISG) for the detailed SAA of the taxable portfolio without non-traditional assets. The performance calculations reflect an annual rebalancing. These calculations will not match the performance measurement published in the ISG, which reflects a monthly rebalancing. For periods prior to 2009, this illustration assumes that the Bloomberg Barclays EM Local Currency Government Total Return Index allocation (inception date of 4 July 2008) was invested fully in the Bloomberg Barclays EM USD Aggregate Total Return Index.

US Large-cap Equities

US Small-cap Equities

US High Yield Credit

US Gov Fixed

Income

US Municipals

Moderate Diversified Portfolio

EM EquitiesInt'l Dev Equities

Moderate diversified portfolios are up nearly 2% year to date, following a 6% return in 2016

5

What are the key market risks?Likelihood of key market risks across the globe

Source: UBS, as of 25 January 2017. Note: The CIO risk score is a composite of four risk "dimensions:" probability (the likelihood of occurrence within the next 6-12 months), urgency (how soon the event would likely take place), geographic scope (the extent of regional/global financial and economic contagion), and expected market impact (by how much the returns on the affected asset classes would deviate from the baseline). Each dimension score can take a value between 1 and 4, with 4 being the highest risk level; the overall CIO risk score is the average of the scores for the four risk dimensions.

6

2017 will see another round of political risk

• The end game? Interactive feature on ubs.com/cio

• Play policymaker – tackle the world's economic problems

• Understand the implications of policy decisions on economies, markets, and portfolios.

• Stacked 2017 political calendar

– January: US presidential inauguration

– March: Dutch general election

– April: French presidential election round 1

– May: French presidential election round 2

– October: German federal election

• Anti-establishment parties gaining popularity in Europe.

0%

10%

20%

30%

40%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% of votes won in national election

Freedom Party (Austria) Five star movement (Italy)Front national (France) Swedish Democrats (Sweden)Syriza (Greece) AfD (Germany)Podemos (Spain) Finns Party / True Finns (Finland)Danish People's Party (Denmark) UKIP (UK)

Source: National elections

Economy at a glance

8

• Markets have weathered political volatility

• Central bank rates remain near historic lows

• Markets have focused on pro-growth policies in the aftermath of the US election

• Growth and inflation expectations have picked up, spurring higher bond yields

Core message

US PMIs consistent with moderate growthISM Purchasing Managers Indices

What is currently happening?

30

35

40

45

50

55

60

65

2007 2009 2011 2013 2015 2017

Composite PMI Manufacturing PMI

Non-manufacturing PMI


9

After initial volatility, markets have responded well to the Brexit vote and the US electionEuropean, UK, US, and EM equity markets since March 2016


Markets have weathered political volatility…

85

90

95

100

105

110

115

120

125

130

135

03-2016 04-2016 05-2016 06-2016 07-2016 08-2016 09-2016 10-2016 11-2016 12-2016 01-2017

SPX Euro Stoxx 50 FTSE 100 MSCI EM

June 24Brexit decision announced

8 NovemberDonald Trump elected

10

Central banks policy remains easy, with few prospects for rate hikes outside the USPolicy rate (%) with UBS forecast


(1.0)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

US UK Switzerland Euro area Japan

Global interest rates remain near historic lows

11

Markets have focused on the "virtues" of a Trump presidency…

• Trade policy

• Immigration reform

• Geopolitical risks

• Comprehensive tax reform

• Nontraditional infrastructure spending plan

• Regulatory relief

12

… boosting expectations of inflation and growth…… and accelerated the anticipated pace of rate hikesFed funds futures, yield in %

Stimulus hopes have boosted inflation expectations…Treasury 10-year bond yield and inflation breakeven


1.0%

1.3%

1.5%

1.8%

2.0%

2.3%

2.5%

2.8%

06-2015 12-2015 06-2016 12-2016

10-year yield 10-year inflation breakeven

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

11/2016 11/2017 11/2018 11/2019

8-Nov-16 25-Jan-17

12 Months (Jun 18 -> Jun 17)

22 Months (Sep 19 -> Nov 17)

>18 Months (May 18)

13

… which are already poised to accelerate due to improving fundamentalsTrump's fiscal policies could add as much as 0.5% to growth, but fading headwinds are the main driversUBS US economic forecast (real GDP)

Source: UBS, as of 25 January 2017.

Potential fiscal stimulus

(estimate)

Potential fiscal stimulus

(estimate)

Looking aheadWhat will and won't happen?

15

• US and global growth will accelerate moderately

• US earnings growth will continue to accelerate

• Central banks will continue to provide liquidity

• The Fed will continue to raise rates

Source: Bloomberg, UBS, as of 31 December 2015.Source: Bloomberg, UBS, as of 25 January 2017.

Core message

Real GDP forecastsUBS forecast, in %

What will happen?

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

US Eurozone UK Japan China World

2016F 2017F 2018F

16

Earnings growth is reboundingConsensus S&P 500 (total and ex-Energy) EPS growth, in % y/y

US earnings will continue to accelerate

Source: Bloomberg, UBS, as of 25 January 2017

-8.0%

-5.5%

-3.0%

-0.5%

2.0%

4.5%

7.0%

9.5%

12.0%

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

E

S&P 500 S&P 500 ex Energy

17

Balance sheets have been boosted by quantitative easingCentral bank balance sheets (USD, trillions)


Central banks will continue to provide liquidity

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fed ECB Bank of Japan Bank of China

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Fed ECB Bank of Japan Bank of China

18

The market now expects several additional rate hikes through the end of 2019Fed funds futures, yield in %

The Fed will continue to raise rates


0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

2.25%

06/2015 12/2015 06/2016 12/2016 06/2017 12/2017 06/2018 12/2018 06/2019 12/2019

8-Nov-16 31-Dec-15 25-Jan-17

19

• US will not face a recession

• China will not face a hard landing

• A bear market will not begin in the US

Core message

Key indicators still show economic healthConference Board US Leading Index (10 indicators)

What won't happen?

90

100

110

120

130

Recession indicator Conference board Index


20


Chinese growth should gradually moderateChina GDP, actual and UBS forecast, in %

Chinese fiscal policy should remain accommodativeBank of China balance sheet, in CNY billions

China will not face an economic hard landing

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2004 2008 2012 20160

1

2

3

4

5

6

7

8

9

2013 2014 2015 2016F 2017F 2018F

21

0

10

20

30

40

50

60

2011 2012 2013 2014 2015 2016 2017

1000

1400

1800

2200

2011 2012 2013 2014 2015 2016 2017

Oct 3. 2011: -19.4%

Jun 1. 2012:-9.9%

July 24. 2013: -5.8%

Oct 15. 2014: -7.4%

Aug 25. 2015: -12.4%

VIX

The bull market has continued despite multiple instances of increased volatilityS&P 500 and VIX index throughout the current bull market

S&P 500

A bear market will not begin in the US


Feb 11. 2016: -13.3%

Our recommendations

23

Overview

• We remain overweight US large-cap and global equities relative to government bonds

• Within fixed income, we are overweight to Treasury Inflation Protected Securities (TIPS) and high yield corporate bonds relative to standard government bonds

• Defensive sectors look expensive, and we favor the reasonably valued growth sectors (energy, healthcare, financials, and technology)

Core message

24

Equities total

Global

USA

Canada

Eurozone

UK

Switzerland

Australia

Hong Kong

Japan

Singapore

Global EM (in USD)

Nor

thA

mer

ica

Euro

peA

PAC

EM

new

old

• We are overweight global and US large-cap stocks vs. US government bonds

• Corporate earnings growth is picking up in many key regions, including the US, the Eurozone, and Japan

• We recently upgraded international developed equities to neutral and downgraded emerging market equities from overweight to neutral

We are tactically overweight US and global equitiesRegional equity preferences

Core messageEquities overview

Source: UBS, as of 6 January 2017Source: UBS, as of 25 January 2017.

overweight

+ ++ +++--- -- - n

underweightSee “Deviations from Benchmark Allocations” in the appendix for an explanation regarding the interpretation of the suggested tactical deviations from benchmark.

25

Energy

Financials

Health care

Technology

Consumer discretionary

Materials

Real estate

Telecom

Industrials

Consumer staples

Utilities

new

old

• Within US equities, we favor cyclical sectors

• The Trump administration's fiscal policy initiatives could boost US GDP by 0.5% and add an incremental 5–15% to S&P 500 earnings per share over the next few years.

• Lowering the corporate tax rate to 25% could boost S&P 500 profits by 8-9%, but the impact's magnitude will depend on offsetting adjustments and the size of deficit expansion

We are tactically underweight higher-valuation defensive sectors US equity sector preferences

Core messageUS equities overview

Source: UBS, as of 6 January 2017Source: UBS, as of 25 January 2017.

overweight

+ ++ +++--- -- - n

underweightSee “Deviations from Benchmark Allocations” in the appendix for an explanation regarding the interpretation of the suggested tactical deviations from benchmark.

26

Higher stock prices reflect improving economic momentumS&P 500 rolling returns and the ISM Manufacturing Index


30

35

40

45

50

55

60

65

70

-60%

-40%

-20%

0%

20%

40%

60%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

S&P 500 trailing 6m return, left ISM manufacturing index, right

US equities: Rally justified by improving fundamentals

27


The S&P 500 earnings yield is substantially higher than real 10-year Treasury yieldsEquity risk premium (S&P 500 earnings yield minus real bond yield)

0%

2%

4%

6%

8%

10%

1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

stocks cheap vs bonds

stocks expensive vs bonds

US equities: Stocks look attractive relative to bonds

28


The US election spurred a significant sector rotationS&P 500 sector performance, 8 Nov 2016 to 26 Jan 2017

US equities: We still prefer cyclical sectors

-5% 0% 5% 10% 15% 20%

Financials

Materials

Industrials

Telecom

Cons Disc

S&P 500

Energy

Technology

Health Care

Real Estate

Cons Stap

Utilities

+ ++ +++–– –– – – n

underweight overweight

5x

7x

9x

11x

13x

15x

17x

19x

21x

23x

Under7.1%

7.1% -8.3%

8.3% -9.9%

9.9% -12.2%

12.2% -22%

Misery Index quintiles

Current

18.8x trailing

earnings, 6.8% misery index

Valuations are in line with the economic backdropTrailing S&P 500 P/E at varying levels (quintiles) of the Misery Index (inflation rate + unemployment rate)

29

EM earnings are stabilizing, but improvement has paused in USD terms12m trailing EPS in USD (Jan 2012 = 100)

Source: Bloomberg, UBS, as of 31 December 2016.

Non-US equities: We are neutral EM equities

0

20

40

60

80

100

120

2012 2013 2014 2015 2016 2017

Emerging Markets Asia ex JP Latin America EMEA

30

Fixed income overview

• Treasury yields reached 2.6% in December, the highest since Sept. 2014. Our 12-month forecast for the 10-year yield is 2.3%.

• We are neutral on IG credit, as spreads have more limited room to compress but their coupon income is attractive vs. government bonds.

• We are overweight on high yield credit as it offers attractive coupon income in a pro-risk environment.

• In HY, we expect default rates to decline to 2.5% over the next 12 months as defaults outside of the troubled commodities sectors remain relatively low and commodity sector defaults subside.

10-year Treasury yieldIn %


Core message

1.0

1.5

2.0

2.5

3.0

3.5

2012 2013 2014 2015 2016 2017

31

Treasury yields have already factored in pro-growth policies


Treasury yields rose on higher growth and inflation expectationsUBS CIO Treasury yield forecasts, in %

1.2

1.7

2.2

2.9

1.4

1.8

2.3

3.0

1.0

1.5

2.0

2.5

3.0

3.5

2-yr UST 5-yr UST 10-yr UST 30-yr UST

26-Jan-17 6m forecast 12m forecast

32

US fixed income: We are neutral on investment grade credit

Source: FactSet, UBS, as of 26 January 2017

100

150

200

250

300

2010 2011 2012 2013 2014 2015 2016 2017

IG spread Average spread

1.0

1.5

2.0

2.5

3.0

2012 2013 2014 2015 2016Total Debt/EBITDA Net debt/EBITDA

Source: S&P Capital IQ, UBS, as of 31 December 2016

IG leverage has been on the riseRatio of debt to earnings (net and total)

Credit spreads have narrowed notablyInvestment grade credit spreads, in bps

33

US fixed income: We are overweight on high yield credit

Source: FactSet, UBS, as of 20 January 2017

Although energy spreads have normalized, HY offers attractive income in a pro-risk environment Spread, in bps

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2012 2013 2014 2015 2016 2017

HY credit spread HY energy credit spread

34

US fixed income: We are neutral on non-US developedLow global yields leads are unattractive, but a weakening USD would offset this yield disadvantageNon-US vs. US aggregate yields, in %


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2001 2003 2005 2007 2009 2011 2013 2015 2017

US Agg Global Agg ex USD

35

• Trump's election is supportive of higher commodity prices

• The oil market continues to rebalance as excess supply has narrowed further, and we call for oil to trade around USD 60/bblin 12 months

• Gold prices continue to benefit from volatility and low US real rates

Core message

Commodity prices strongly rebounded in 2016CRB CMDT index (US Spot – all commodities)

Commodities overview

370

380

390

400

410

420

430

440

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17


36

• After years of strong undervaluation of the euro, we believe that a correction is due, and prefer the EUR versus the US dollar

• We also prefer SEK versus CAD

• Attractive interest rate carry is the basis for our preference for a basket of EM currencies relative to a basket of DM currencies

Core message

We prefer select EM vs select DMCurrent currency preferences

Foreign exchange overview


Note: The EM FX basket consists of the Brazilian real, the Indian rupee, the Russian ruble and the South African rand. The DM FX basket consists of the Australian dollar, the Canadian dollar and the Singapore dollar (all with equal weights)

USD

EUR

GBP

JPY

CHF

SEK

NOK

CAD

NZD

AUD

new old

neutralunderweight overweight

USD

EUR

GBP

JPY

CHF

SEK

NOK

CAD

NZD

AUD

EM FX basket

DM FX basket

new old


USD

EUR

GBP

JPY

CHF

SEK

NOK

CAD**

NZD

AUD**

EM FX basket**

DM FX basket**

new old


37

Conclusions and takeaways• The global economic expansion continues

• A Trump presidency may add to growth and inflation, which are already poised to accelerate due to fading headwinds

• Central banks will remain supportive, but monetary policy will converge as the Fed continues to hike interest rates gradually and the ECB gradually tapers its QE program

• Going forward, earnings should pick up and we expect the bull market to continue.

• We are overweight to US large-cap and global equities, mid-cycle US cyclicalsectors, TIPS, and high yield corporate bonds.

Core message

38

Appendix: Investment committeesGlobal Investment Process and Committee DescriptionThe UBS investment process is designed to achieve replicable, high quality results through applying intellectual rigor, strong process governance, clear responsibility and a culture of challenge.

Based on the analyses and assessments conducted and vetted throughout the investment process, the Chief Investment Officer (CIO) formulates the UBS Wealth Management Investment HouseView (e.g., overweight, neutral, underweight stance for asset classes and market segments relative to their benchmark allocation) at the Global Investment Committee (GIC). Senior investmentprofessionals from across UBS, complemented by selected external experts, debate and rigorously challenge the investment strategy to ensure consistency and risk control.

Global Investment Committee CompositionThe GIC is comprised of 11 members, representing top market and investment expertise from across all divisions of UBS:• Mark Haefele (Chair)• Mark Andersen• Jorge Mariscal• Mike Ryan• Simon Smiles• Tan Min Lan• Themis Themistocleous• Paul Donovan• Bruno Marxer (*)• Dawn Fitzpatrick (*)• Andreas Koester (*)(*) Business areas distinct from Chief Investment Office/Wealth Management Research

WMA Asset Allocation Committee DescriptionWe recognize that a globally derived house view is most effective when complemented by local perspective and application. As such, UBS has formed a Wealth Management Americas AssetAllocation Committee (WMA AAC). WMA AAC is responsible for the development and monitoring of UBS WMA’s strategic asset allocation models and capital market assumptions. The WMAAAC sets parameters for the CIO WMR Americas Investment Strategy Group to follow during the translation process of the GIC’s House Views and the incorporation of US-specific asset classviews into the US-specific tactical asset allocation models.

WMA Asset Allocation Committee CompositionThe WMA Asset Allocation Committee is comprised of five members:• Mike Ryan• Michael Crook• Stephen Freedman• Richard Hollmann (*)• Jeremy Zirin(*) Business areas distinct from Chief Investment Office/Wealth Management Research

39

Appendix: Statement of risk1. Equity markets are difficult to forecast because of fluctuations in the economy, investor psychology, geopolitical conditions, and other

important variables.

2. Bond market returns are difficult to forecast because of fluctuations in the economy, investor psychology, geopolitical conditions and other important variables. Corporate bonds are subject to a number of risks, including credit risk, interest rate risk, liquidity risk, and event risk. Though historical default rates are low on investment grade corporate bonds, perceived adverse changes in the creditquality of an issuer may negatively affect the market value of securities. As interest rates rise, the value of a fixed coupon security will likely decline. Bonds are subject to market value fluctuations, given changes in the level of risk-free interest rates. Not all bonds can be sold quickly or easily on the open market. Prospective investors should consult their tax advisors concerning the federal, state, local, and non-U.S. tax consequences of owning any securities referenced in this report.

3. Prospective investors should consult their tax advisors concerning the federal, state, local, and non-U.S. tax consequences of owning preferred stocks. Preferred stocks are subject to market value fluctuations, given changes in the level of interest rates. For example, if interest rates rise, the value of these securities could decline. If preferred stocks are sold prior to maturity, price and yield may vary. Adverse changes in the credit quality of the issuer may negatively affect the market value of the securities. Most preferred securities may be redeemed at par after five years. If this occurs, holders of the securities may be faced with a reinvestment decision at lower future rates. Preferred stocks are also subject to other risks, including illiquidity and certain special redemption provisions.

4. Although historical default rates are very low, all municipal bonds carry credit risk, with the degree of risk largely following the particular bond’s sector. Additionally, all municipal bonds feature valuation, return, and liquidity risk. Valuation tends to follow internal and external factors, including the level of interest rates, bond ratings, supply factors, and media reporting. These can be difficult or impossible to project accurately. Also, most municipal bonds are callable and/or subject to earlier than expected redemption, which can reduce an investor’s total return. Because of the large number of municipal issuers and credit structures, not all bonds can be easily or quickly sold on the open market.

End Notes“CIO WMR tactical deviation” legend: Overweight Underweight NeutralSource: UBS CIO WMR and WMA AAC, 19 January 2017. See appendix information for information regarding sources of strategic Asset allocations and their suitability, investor risk profiles, and the interpretation of the suggested tactical deviations from the strategic asset allocations. “Directional change” legend: ▲ Upgrade ▼ Downgrade, refers to moderate-risk profile1 Change is the difference between the tactical deviation column in the previous month and the current month2 The current allocation column is the sum of the strategic asset allocation and the tactical deviation column3 The MSCI All Country World Index will be used as the benchmark for global equity

40

Appendix Emerging Market InvestmentsInvestors should be aware that Emerging Market assets are subject to, amongst others, potential risks linked to currency volatility, abrupt changes in the cost of capital and the economic growth outlook, as well as regulatory and socio-political risk, interest rate risk and higher credit risk. Assets can sometimes be very illiquid and liquidity conditions can abruptly worsen. WMR generally recommends only those securities it believes have been registered under Federal U.S. registration rules (Section 12 of the Securities Exchange Act of 1934) and individual State registration rules (commonly known as "Blue Sky" laws). Prospective investors should be aware that to the extent permitted under US law, WMR may from time to time recommend bonds that are not registered under US or State securities laws. These bonds may be issued in jurisdictions where the level of required disclosures to be made by issuers is not as frequent or complete as that required by US laws. For more background on emerging markets generally, see the WMR Education Notes "Investing in Emerging Markets (Part 1): Equities", 27 August 2007, "Emerging Market Bonds: Understanding Emerging Market Bonds," 12 August 2009 and "Emerging Markets Bonds: Understanding Sovereign Risk," 17 December 2009. Investors interested in holding bonds for a longer period are advised to select the bonds of those sovereigns with the highest credit ratings (in the investment grade band). Such an approach should decrease the risk that an investor could end up holding bonds on which the sovereign has defaulted. Sub-investment grade bonds are recommended only for clients with a higher risk tolerance and who seek to hold higher yielding bonds for shorter periods only.

Non-Traditional AssetsNon-traditional asset classes are alternative investments that include hedge funds, private equity, real estate, and managed futures (collectively, alternative investments). Interests of alternative investment funds are sold only to qualified investors, and only by means of offering documents that include information about the risks, performance and expenses of alternative investment funds, and which clients are urged to read carefully before subscribing and retain. An investment in an alternative investment fund is speculative and involves significant risks. Specifically, these investments (1) are not mutual funds and are not subject to the same regulatory requirements as mutual funds; (2) may have performance that is volatile, and investors may lose all or a substantial amount of their investment; (3) may engage in leverage and other speculative investment practices that may increase the risk of investment loss; (4) are long-term, illiquid investments, there is generally no secondary market for the interests of a fund, and none is expected to develop; (5) interests of alternative investment funds typically will be illiquid and subject to restrictions on transfer; (6) may not be required to provide periodic pricing or valuation information to investors; (7) generally involve complex tax strategies and there may be delays in distributing tax information to investors; (8) are subject to high fees, including management fees and other fees and expenses, all of which will reduce profits.Interests in alternative investment funds are not deposits or obligations of, or guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other governmental agency. Prospective investors should understand these risks and have the financial ability and willingness to accept them for an extended period of time before making an investment in an alternative investment fund and should consider an alternative investment fund as a supplement to an overall investment program.In addition to the risks that apply to alternative investments generally, the following are additional risks related to an investment in these strategies:• Hedge Fund Risk: There are risks specifically associated with investing in hedge funds, which may include risks associated with investing in short sales, options, small-cap stocks, "junk

bonds," derivatives, distressed securities, non-U.S. securities and illiquid investments.• Managed Futures: There are risks specifically associated with investing in managed futures programs. For example, not all managers focus on all strategies at all times, and managed

futures strategies may have material directional elements.• Real Estate: There are risks specifically associated with investing in real estate products and real estate investment trusts. They involve risks associated with debt, adverse changes in

general economic or local market conditions, changes in governmental, tax, real estate and zoning laws or regulations, risks associated with capital calls and, for some real estate products, the risks associated with the ability to qualify for favorable treatment under the federal tax laws.

• Private Equity: There are risks specifically associated with investing in private equity. Capital calls can be made on short no-tice, and the failure to meet capital calls can result in significant adverse consequences including, but not limited to, a total loss of investment.

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

41

Appendix: explanations about asset allocationsSources of strategic asset allocations and investor risk profilesStrategic asset allocations represent the longer-term allocation of assets that is deemed suitable for a particular investor. The strategic asset allocation models discussed in this publication, and the capital market assumptions used for the strategic asset allocations, were developed and approved by the WMA AAC.

The strategic asset allocations are provided for illustrative purposes only and were designed by the WMA AAC for hypothetical US investors with a total return objective under five different Investor Risk Profiles ranging from conservative to aggressive. In general, strategic asset allocations will differ among investors according to their individual circumstances, risk tolerance, return objectives and time horizon. Therefore, the strategic asset allocations in this publication may not be suitable for all investors or investment goals and should not be used as the sole basis of any investment decision. Minimum net worth requirements may apply to allocations to non-traditional assets. As always, please consult your UBS Financial Advisor to see how these weightings should be applied or modified according to your individual profile and investment goals.

The process by which the strategic asset allocations were derived is described in detail in the publication entitled “UBS WMA’s Capital Markets Model: Explained, Part II: Methodology,” published on 22 January 2013. Your Financial Advisor can provide you with a copy. Deviations from benchmark allocation.

Deviations from strategic asset allocation or benchmark allocationThe recommended tactical deviations from the strategic asset allocation or benchmark allocation are provided by the Global Investment Committee andthe Investment Strategy Group within CIO Wealth Management Research Americas. They reflect the short- to medium-term assessment of market opportunities and risks in the respective asset classes and market segments. Positive/zero/negative tactical deviations correspond to an overweight/neutral/underweight stance for each respective asset class and market segment relative to their strategic allocation. The current allocation is the sum of thestrategic asset allocation and the tactical deviation. Note that the regional allocations on the Equities and Bonds pages in UBS House View are provided on an unhedged basis (i.e., it is assumed that investorscarry the underlying currency risk of such investments) unless otherwise stated. Thus, the deviations from the strategic asset allocation reflect the views of the underlying equity and bond markets in combination with the assessment of the associated currencies. Thus, the deviations from the strategic asset allocation reflect the views of the underlying equity and bond markets in combination with the assessment of the associated currencies. The detailed asset allocation tables integrate the country preferences within each asset class with the asset class preferences in UBS House View.

NOTE: TACTICAL TIME HORIZON IS APPROXIMATELY SIX MONTHS

42

Appendix: Disclaimer Chief Investment Office (CIO) Wealth Management (WM) Research is published by UBS Wealth Management and UBS Wealth Management Americas, Business Divisions of UBS AG (UBS) or an affiliate thereof. CIO WM Research reports published outside the US are branded as Chief Investment Office WM. In certain countries UBS AG is referred to as UBS SA. This publication is for your information only and is not intended as an offer, or a solicitation of an offer, to buy or sell any investment or other specific product. The analysis contained herein does not constitute a personal recommendation or take into account the particular investment objectives, investment strategies, financial situation and needs of any specific recipient. It is based on numerous assumptions. Different assumptions could result in materially different results. We recommend that you obtain financial and/or tax advice as to the implications (including tax) of investing in the manner described or in any of the products mentioned herein. Certain services and products are subject to legal restrictions and cannot be offered worldwide on an unrestricted basis and/or may not be eligible for sale to all investors. All information and opinions expressed in this document were obtained from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to its accuracy or completeness (other than disclosures relating to UBS and its affiliates). All information and opinions as well as any prices indicated are current only as of the date of this report, and are subject to change without notice. Opinions expressed herein may differ or be contrary to those expressed by other business areas or divisions of UBS as a result of using different assumptions and/or criteria. At any time, investment decisions (including whether to buy, sell or hold securities) made by UBS AG, its affiliates, subsidiaries and employees may differ from or be contrary to the opinions expressed in UBS research publications. Some investments may not be readily realizable since the market in the securities is illiquid and therefore valuing the investment and identifying the risk to which you are exposed may be difficult to quantify. UBS relies on information barriers to control the flow of information contained in one or more areas within UBS, into other areas, units, divisions or affiliates of UBS. Futures and options trading is considered risky. Past performance of an investment is no guarantee for its future performance. Some investments may be subject to sudden and large falls in value and on realization you may receive back less than you invested or may be required to pay more. Changes in FX rates may have an adverse effect on the price, value or income of an investment. This report is for distribution only under such circumstances as may be permitted by applicable law.

Distributed to US persons by UBS Financial Services Inc. or UBS Securities LLC, subsidiaries of UBS AG. UBS Switzerland AG, UBS Deutschland AG, UBS Bank, S.A., UBS Brasil Administradora de Valores Mobiliarios Ltda, UBS Asesores Mexico, S.A. de C.V., UBS Securities Japan Co., Ltd, UBS Wealth Management Israel Ltd and UBS Menkul Degerler AS are affiliates of UBS AG. UBS Financial Services Incorporated of Puerto Rico is a subsidiary of UBS Financial Services Inc. UBS Financial Services Inc. accepts responsibility for the content of a report prepared by a non-US affiliate when it distributes reports to US persons. All transactions by a US person in the securities mentioned in this report should be effected through a US-registered broker dealer affiliated with UBS, and not through a non-US affiliate. The contents of this report have not been and will not be approved by any securities or investment authority in the United States or elsewhere. UBS Financial Services Inc. is not acting as a municipal advisor to any municipal entity or obligated person within the meaning of Section 15B of the Securities Exchange Act (the "Municipal Advisor Rule") and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning of the Municipal Advisor Rule.

UBS specifically prohibits the redistribution or reproduction of this material in whole or in part without the prior written permission of UBS and UBS accepts no liability whatsoever for the actions of third parties in this respect.

Version as per September 2015.

© UBS 2017. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved.

Please contact your UBS Institutional Consultant if you have any questions regarding this report, if your financial situation, individualneeds or investment objectives have changed, or if you would like to initiate or modify any investment restrictions on this account.Please note that you are also required to inform your Institutional Consultant, directly, of any changes in your financial condition,investment objectives or investment restrictions on your account.

Prepared for:Gwinnett County Employees Retirement SystemFebruary 15, 2017

Prepared by:

Investment Performance

Period Ending December 31, 2016

Gwinnett County Composite

Allen Wright, Earle Dodd, Scott Olsen, Ray Vuicich

This report is provided for informational purposes only. The information shown was obtained from sources believed to be reliable, the accuracy of which cannot be guaranteed. Account statements provided by UBS or other financial institutions are theofficial record of your holdings, balances, transactions and security values and are not amended or superseded by any of the information presented in this report. Information is current as of the date shown. Past performance is no guarantee of futurereturns. See IMPORTANT INFORMATION at end of report for details.

Inception 12/31/2016 Latest %tile Year to %tile 1 %tile 3 %tile 5 %tile %tileAccount Date Market Value QTR Ranking Date Ranking Year Ranking Year Ranking Year RankingInceptionRankingConsolidated Portfolio*(1) 12/31/2006 $1,043,531,979 0.32% 70 6.88% 76 6.88% 76 4.71% 53 8.73% 30 6.35% 1

Policy Index 0.06% 75 7.95% 44 7.95% 44 4.83% 47 8.05% 56 5.46% 31Dynamic Index 0.56% 57 8.55% 22 8.55% 22 4.65% 56 8.12% 53Large Cap Growth Equities

Columbia Management 04/02/2013 $56,451,671 -8.01% 99 -8.13% 99 -8.13% 99 3.61% 96 10.30% 67Russell 1000 Growth 1.01% 40 7.08% 31 7.08% 31 8.55% 21 12.62% 37TCW Institutional 04/02/2013 $56,288,157 -5.63% 99 -7.14% 99 -7.14% 99 4.28% 93 8.98% 94Russell 1000 Growth 1.01% 40 7.08% 31 7.08% 31 8.55% 21 12.62% 37

Large Cap Value EquitiesBarrow Hanley 01/03/2007 $60,863,658 7.82% 25 16.75% 31 16.75% 31 9.72% 10 15.45% 25 7.13% 37Russell 1000 Value 6.68% 48 17.34% 25 17.34% 25 8.59% 29 14.80% 41 5.75% 84The London Company 12/31/2016 $60,000,000 0.00%Russell 1000 Value

Large Cap CoreBlackrock 12/31/2016 $0 0.00%S&P 500 Index

Mid Cap CoreFairpointe Capital 03/30/2012 $35,620,043 13.92% 1 25.91% 1 25.91% 1 8.33% 49 15.43% 1Russell Midcap 3.21% 73 13.80% 60 13.80% 60 7.92% 52 12.62% 60

Mid Cap GrowthWilliam Blair 03/30/2012 $30,207,562 -0.81% 83 1.33% 96 1.33% 96 3.81% 70 8.07% 96Russell Midcap Grwth 0.46% 52 7.33% 40 7.33% 40 6.23% 34 11.05% 35

Mid Cap ValueVaughan Nelson 03/30/2012 $34,396,563 2.86% 98 7.05% 99 7.05% 99 5.58% 87 12.30% 75Russell Midcap Value 5.52% 76 20.00% 49 20.00% 49 9.45% 32 13.96% 38

Small Cap BlendAtlanta Capital 01/31/2007 $93,630,022 7.60% 77 19.64% 56 19.64% 56 9.10% 32 15.64% 49 12.12% 1Russell 2000 8.83% 60 21.31% 41 21.31% 41 6.74% 64 14.46% 69 6.95% 91

REITsInvesco REIT 01/05/2007 $43,044,920 -3.42% 79 6.93% 51 6.93% 51 12.46% 89 11.44% 96 5.58% 72NAREIT Equity -3.28% 72 8.63% 24 8.63% 24 12.66% 82 11.98% 64 84

Foreign Developed Blend1607 Capital Partners 06/30/2008 $130,462,249 -1.28% 25 6.25% 6 6.25% 6 0.19% 9 7.66% 12 3.60% 7MSCI ACWI ex US Net -1.25% 24 4.50% 11 4.50% 11 -1.78% 48 5.00% 80 0.58% 59

Gross of FeesSummary StatementGwinnett County Employees Retirement System

returns. See IMPORTANT INFORMATION at end of report for details.official record of your holdings, balances, transactions and security values and are not amended or superseded by any of the information presented in this report. Information is current as of the date shown. Past performance is no guarantee of futureThis report is provided for informational purposes only. The information shown was obtained from sources believed to be reliable, the accuracy of which cannot be guaranteed. Account statements provided by UBS or other financial institutions are the

3

Inception 12/31/2016 Latest %tile Year to %tile 1 %tile 3 %tile 5 %tile %tileAccount Date Market Value QTR Ranking Date Ranking Year Ranking Year Ranking Year RankingInceptionRanking

Emerging MarketsOppenheimer Developing Markets 03/28/2014 $13,320,195 -5.07% 60 7.38% 72 7.38% 72 -3.65% 88MSCI Emerging Markets -4.08% 44 11.60% 37 11.60% 37 -1.89% 69Brandes Emerging Markets 03/28/2014 $13,409,181 -0.57% 5 25.74% 1 25.74% 1 -2.87% 81MSCI Emerging Markets -4.08% 44 11.60% 37 11.60% 37 -1.89% 69

Global AllocationGlobal Allocation 12/16/2014 $51,173,523 -0.23% 60 5.38% 11 5.38% 11 2.19% 28HFRX Global Hedge 1.15% 22 2.50% 39 2.50% 39 0.57% 60

Core Fixed IncomeVoya Investment Management 12/10/2007 $150,388,366 -2.59% 64 3.46% 29 3.46% 29 3.32% 31 2.71% 43 4.90% 20Barclays Aggregate -2.98% 88 2.65% 57 2.65% 57 3.03% 51 2.23% 72 4.16% 69Ryan Labs 04/03/2012 $130,451,718 -2.59% 64 3.70% 21 3.70% 21 3.89% 8 3.36% 11Barclays Aggregate -2.98% 88 2.65% 57 2.65% 57 3.03% 51 2.34% 69

Global Fixed IncomeTempleton Global Bond 12/08/2011 $25,527,769 8.28% 1 6.61% 34 6.61% 34 1.38% 57 4.40% 39 4.23% 39CG World Gov't Bond -8.53% 99 1.60% 89 1.60% 89 -0.84% 95 -0.99% 99 99Dreyfus International 12/08/2011 $22,296,380 -8.07% 96 1.91% 86 1.91% 86 -0.28% 84 1.03% 76 1.11% 76BC Global Agg Ex US -10.26% 99 1.49% 89 1.49% 89 -2.59% 99 -1.42% 99 99

Cash & EquivalentsCash 12/31/2016 $36,000,000 0.00%BB 3 Mth TBill

1 Public Funds Universe greater than $1B.

Gross of FeesSummary StatementGwinnett County Employees Retirement System


4

Inception 12/31/2016 Latest %tile Year to %tile 1 %tile 3 %tile 5 %tile %tileAccount Date Market Value QTR Ranking Date Ranking Year Ranking Year Ranking Year RankingInceptionRankingConsolidated Portfolio*(1) 12/31/2006 $1,043,531,979 0.21% 74 6.45% 86 6.45% 86 4.25% 68 8.31% 50 5.91% 10

Policy Index 0.06% 75 7.95% 44 7.95% 44 4.83% 47 8.05% 56 5.46% 31Dynamic Index 0.56% 57 8.55% 22 8.55% 22 4.65% 56 8.12% 53Large Cap Growth Equities

Columbia Management 04/02/2013 $56,451,671 -8.13% 99 -8.58% 99 -8.58% 99 3.10% 94 9.77% 68Russell 1000 Growth 1.01% 32 7.08% 26 7.08% 26 8.55% 13 12.62% 21TCW Institutional 04/02/2013 $56,288,157 -5.76% 99 -7.66% 99 -7.66% 99 3.86% 91 8.50% 93Russell 1000 Growth 1.01% 32 7.08% 26 7.08% 26 8.55% 13 12.62% 21

Large Cap Value EquitiesBarrow Hanley 01/03/2007 $60,863,658 7.74% 19 16.39% 29 16.39% 29 9.37% 6 15.08% 21 6.75% 28Russell 1000 Value 6.68% 41 17.34% 23 17.34% 23 8.59% 16 14.80% 26 5.75% 58The London Company 12/31/2016 $60,000,000 0.00%Russell 1000 Value

Large Cap CoreBlackrock 12/31/2016 $0 0.00%S&P 500 Index

Mid Cap CoreFairpointe Capital 03/30/2012 $35,620,043 13.75% 1 25.36% 1 25.36% 1 7.81% 43 14.82% 1Russell Midcap 3.21% 70 13.80% 62 13.80% 62 7.92% 40 12.62% 37

Mid Cap GrowthWilliam Blair 03/30/2012 $30,207,562 -1.01% 81 0.53% 97 0.53% 97 3.00% 70 7.26% 91Russell Midcap Grwth 0.46% 43 7.33% 32 7.33% 32 6.23% 25 11.05% 22

Mid Cap ValueVaughan Nelson 03/30/2012 $34,396,563 2.67% 99 6.25% 99 6.25% 99 4.80% 87 11.45% 77Russell Midcap Value 5.52% 77 20.00% 43 20.00% 43 9.45% 25 13.96% 28

Small Cap BlendAtlanta Capital 01/31/2007 $93,630,022 7.43% 74 18.88% 53 18.88% 53 8.49% 27 14.83% 50 11.40% 1Russell 2000 8.83% 54 21.31% 34 21.31% 34 6.74% 56 14.46% 58 6.95% 72

REITsInvesco REIT 01/05/2007 $43,044,920 -3.75% 81 5.84% 59 5.84% 59 11.67% 80 10.65% 90 4.82% 78NAREIT Equity -3.28% 54 8.63% 9 8.63% 9 12.66% 61 11.98% 28 78

Foreign Developed Blend1607 Capital Partners 06/30/2008 $130,462,249 -1.46% 28 5.48% 8 5.48% 8 -0.50% 15 6.97% 25 2.87% 14MSCI ACWI ex US Net -1.25% 24 4.50% 11 4.50% 11 -1.78% 48 5.00% 80 0.58% 59

Net of FeesSummary StatementGwinnett County Employees Retirement System


5

Inception 12/31/2016 Latest %tile Year to %tile 1 %tile 3 %tile 5 %tile %tileAccount Date Market Value QTR Ranking Date Ranking Year Ranking Year Ranking Year RankingInceptionRanking

Emerging MarketsOppenheimer Developing Markets 03/28/2014 $13,320,195 -5.07% 55 7.38% 61 7.38% 61 -3.65% 80MSCI Emerging Markets -4.08% 42 11.60% 29 11.60% 29 -1.89% 55Brandes Emerging Markets 03/28/2014 $13,409,181 -0.57% 5 25.74% 1 25.74% 1 -2.87% 71MSCI Emerging Markets -4.08% 42 11.60% 29 11.60% 29 -1.89% 55

Global AllocationGlobal Allocation 12/16/2014 $51,173,523 -0.23% 60 5.38% 11 5.38% 11 2.19% 28HFRX Global Hedge 1.15% 22 2.50% 39 2.50% 39 0.57% 60

Core Fixed IncomeVoya Investment Management 12/10/2007 $150,388,366 -2.65% 64 3.23% 32 3.23% 32 3.03% 31 2.47% 43 4.61% 24Barclays Aggregate -2.98% 86 2.65% 49 2.65% 49 3.03% 31 2.23% 60 4.16% 53Ryan Labs 04/03/2012 $130,451,718 -2.63% 63 3.65% 18 3.65% 18 3.75% 7 2.99% 19Barclays Aggregate -2.98% 86 2.65% 49 2.65% 49 3.03% 31 2.34% 46

Global Fixed IncomeTempleton Global Bond 12/08/2011 $25,527,769 8.28% 1 6.61% 33 6.61% 33 1.38% 57 4.40% 40 4.23% 40CG World Gov't Bond -8.53% 99 1.60% 90 1.60% 90 -0.84% 92 -0.99% 99 99Dreyfus International 12/08/2011 $22,296,380 -8.07% 99 1.91% 89 1.91% 89 -0.28% 81 1.03% 75 1.11% 75BC Global Agg Ex US -10.26% 99 1.49% 92 1.49% 92 -2.59% 99 -1.42% 99 99

Cash & EquivalentsCash 12/31/2016 $36,000,000 0.00%BB 3 Mth TBill

1 Public Funds Universe greater than $1B.

Net of FeesSummary StatementGwinnett County Employees Retirement System


6

Quarter to Date

Beginning Invest. Net Ending %Fund Value Gain Flows Value ReturnConsolidated Portfolio $1,040,428,837 $3,108,959 ($5,817) $1,043,531,979 0.32%

Policy Index 0.06%Dynamic Index 0.56%Large Cap Growth

Columbia Management $70,057,986 ($5,606,315) ($8,000,000) $56,451,671 -8.01%

TCW Institutional $59,643,323 ($3,355,166) $0 $56,288,157 -5.63%

Large Cap ValueBarrow Hanley $141,899,466 $10,965,360 ($92,001,167) $60,863,658 7.82%The London Company $0 $60,000,000 $60,000,000 N/A

Large Cap CoreBlackrock $0 $0 $0 N/A

Mid Cap CoreFairpointe Capital $33,929,926 $4,690,117 ($3,000,000) $35,620,043 13.92%

Mid Cap GrowthWilliam Blair $30,455,390 ($247,828) $0 $30,207,562 -0.81%

Mid Cap ValueVaughan Nelson $33,439,423 $957,140 $0 $34,396,563 2.86%

Small Cap BlendAtlanta Capital $93,624,520 $7,005,502 ($7,000,000) $93,630,022 7.60%

REITSInvesco REIT $44,647,518 ($1,602,598) $0 $43,044,920 -3.42%

Foreign Developed Blend1607 Capital Partners $132,158,214 ($1,695,965) $0 $130,462,249 -1.28%

Emerging MarketsOppenheimer Developing $14,030,913 ($710,717) $0 $13,320,195 -5.07%

MarketsBrandes Emerging Markets $13,485,588 ($76,406) $0 $13,409,181 -0.57%

Global AllocationGlobal Allocation $51,291,988 ($118,465) $0 $51,173,523 -0.23%

Core Fixed IncomeVoya Investment Management $154,387,666 ($3,999,300) $0 $150,388,366 -2.59%

Ryan Labs $119,546,671 ($3,090,303) $13,995,350 $130,451,718 -2.59%

Global Fixed IncomeTempleton Global Bond $23,576,063 $1,951,706 $0 $25,527,769 8.28%Dreyfus International $24,254,182 ($1,957,802) $0 $22,296,380 -8.07%

2.00%1.00%0.00%-1.00%-2.00%

Total

Dreyfus Intl

Templeton Global

Ryan Labs

Voya

Global Allocation

Brandes EM

Opp Develop Market

1607 Capital

Invesco REIT

Atlanta Capital

Vaughan Nelson

William Blair

Fairpointe Capital

Barrow Hanley

TCW Institutional

Columbia Mgmt

0.32%

-0.20%

0.19%

-0.31%

-0.40%

-0.01%

-0.01%

-0.07%

-0.17%

-0.15%

0.70%

0.10%

-0.02%

0.47%

1.09%

-0.33%

-0.56%

Quarterly Contribution Analysis

Gwinnett County Employees Retirement System Executive Summary

Period Ending: 12/16


7

Year to Date

Beginning Invest. Net Ending %Fund Value Gain Flows Value ReturnTOTAL FUND $995,580,073 $67,982,942 ($20,031,036) $1,043,531,979 6.88%



TCW Institutional $60,617,100 ($4,328,411) ($532) $56,288,157 -7.14%

Large Cap ValueBarrow Hanley $133,871,651 $21,993,174 ($95,001,167) $60,863,658 16.75%

The London Company $0 $60,000,000 $60,000,000 N/ALarge Cap Core

Blackrock $0 $0 $0 N/AMid Cap Core

Fairpointe Capital $34,559,374 $8,061,140 ($7,000,471) $35,620,043 25.91%

Mid Cap GrowthWilliam Blair $32,852,047 $355,515 ($3,000,000) $30,207,562 1.33%

Mid Cap ValueVaughan Nelson $35,155,781 $2,240,782 ($3,000,000) $34,396,563 7.05%


REITSInvesco REIT $40,507,729 $2,561,407 ($24,216) $43,044,920 6.93%

Foreign Developed Blend1607 Capital Partners $122,788,558 $7,673,691 $0 $130,462,249 6.25%

Emerging MarketsOppenheimer Developing $12,404,800 $915,396 $0 $13,320,195 7.38%MarketsBrandes Emerging Markets $10,664,127 $2,745,055 $0 $13,409,181 25.74%

Global AllocationGlobal Allocation $48,559,573 $2,613,951 $0 $51,173,523 5.38%

Core Fixed IncomeVoya Investment Management $144,893,706 $5,494,660 $0 $150,388,366 3.46%Ryan Labs $112,146,991 $4,309,378 $13,995,350 $130,451,718 3.70%

Global Fixed IncomeTempleton Global Bond $23,945,988 $1,581,781 $0 $25,527,769 6.61%Dreyfus International $21,878,385 $417,995 $0 $22,296,380 1.91%

10.00%8.00%6.00%4.00%2.00%0.00%-2.00%

Total

Dreyfus Intl

Templeton Global

Ryan Labs

Voya

Global Allocation

Brandes EM

Opp Develop Market

1607 Capital

Invesco REIT

Atlanta Capital

Vaughan Nelson

William Blair

Fairpointe Capital

Barrow Hanley

TCW Institutional

Columbia Mgmt

6.88%

0.04%

0.16%

0.43%

0.55%

0.26%

0.28%

0.09%

0.77%

0.28%

1.72%

0.23%

0.04%

0.81%

2.22%

-0.44%

-0.57%

Year To Date Contribution Analysis




8

Trailing One Year

Beginning Invest. Net Ending %Fund Value Gain Flows Value ReturnConsolidated Portfolio $995,580,073 $67,982,942 ($20,031,036) $1,043,531,979 6.88%



TCW Institutional $60,617,100 ($4,328,411) ($532) $56,288,157 -7.14%

Large Cap ValueBarrow Hanley $133,871,651 $21,993,174 ($95,001,167) $60,863,658 16.75%

The London Company $0 $60,000,000 $60,000,000 N/ALarge Cap Core

Blackrock $0 $0 $0 N/AMid Cap Core

Fairpointe Capital $34,559,374 $8,061,140 ($7,000,471) $35,620,043 25.91%

Mid Cap GrowthWilliam Blair $32,852,047 $355,515 ($3,000,000) $30,207,562 1.33%

Mid Cap ValueVaughan Nelson $35,155,781 $2,240,782 ($3,000,000) $34,396,563 7.05%


REITSInvesco REIT $40,507,729 $2,561,407 ($24,216) $43,044,920 6.93%

Foreign Developed Blend1607 Capital Partners $122,788,558 $7,673,691 $0 $130,462,249 6.25%

Emerging MarketsOppenheimer Developing $12,404,800 $915,396 $0 $13,320,195 7.38%MarketsBrandes Emerging Markets $10,664,127 $2,745,055 $0 $13,409,181 25.74%

Global AllocationGlobal Allocation $48,559,573 $2,613,951 $0 $51,173,523 5.38%

Core Fixed IncomeVoya Investment Management $144,893,706 $5,494,660 $0 $150,388,366 3.46%Ryan Labs $112,146,991 $4,309,378 $13,995,350 $130,451,718 3.70%

Global Fixed IncomeTempleton Global Bond $23,945,988 $1,581,781 $0 $25,527,769 6.61%Dreyfus International $21,878,385 $417,995 $0 $22,296,380 1.91%

10.00%8.00%6.00%4.00%2.00%0.00%-2.00%

Total

Dreyfus Intl

Templeton Global

Ryan Labs

Voya

Global Allocation

Brandes EM

Opp Develop Market

1607 Capital

Invesco REIT

Atlanta Capital

Vaughan Nelson

William Blair

Fairpointe Capital

Barrow Hanley

TCW Institutional

Columbia Mgmt

6.88%

0.04%

0.16%

0.43%

0.55%

0.26%

0.28%

0.09%

0.77%

0.28%

1.72%

0.23%

0.04%

0.81%

2.22%

-0.44%

-0.57%

Trailing 1Y Contribution Analysis




9

Market Value Percent Market Value Percent Market Value PercentActual Actual Target Target Difference Difference

Core Fixed Income 280,840,084.4 26.9% 365,236,192.6 35.0% (84,396,108.2) (8.1%)Foreign Developed Blend 130,462,248.7 12.5% 156,529,796.8 15.0% (26,067,548.2) (2.5%)Large Cap Value Equities 120,863,658.0 11.6% 130,441,497.4 12.5% (9,577,839.4) (0.9%)Large Cap Growth Equities 112,739,827.8 10.8% 130,441,497.4 12.5% (17,701,669.5) (1.7%)Mid Cap Equities 100,224,168.2 9.6% 78,264,898.4 7.5% 21,959,269.8 2.1%Small Cap Equities 93,630,022.5 9.0% 78,264,898.4 7.5% 15,365,124.1 1.5%Global Allocation 51,173,523.4 4.9% 0.0 0.0% 51,173,523.4 4.9%Global Fixed Income 47,824,148.8 4.6% 52,176,598.9 5.0% (4,352,450.1) (0.4%)REITs 43,044,920.3 4.1% 52,176,598.9 5.0% (9,131,678.6) (0.9%)Cash & Equivalents 36,000,000.0 3.4% 0.0 0.0% 36,000,000.0 3.4%Emerging Markets 26,729,376.7 2.6% 0.0 0.0% 26,729,376.7 2.6%Total Fund $1,043,531,978.9 100.0% $1,043,531,978.9 100.0% $0.0 0.0%

Core Fixed Income

Global Allocation

Mid Cap Equities

Global Fixed IncomeLarge Cap Growth Equities

Reits

Large Cap ValueEquities

Cash & Equivalents

Foreign DevelopedBlend

Emerging Markets

Small Cap Equities

Core Fixed Income

Mid Cap Equities

Global Fixed Income Large Cap Growth Equities

Reits

Large Cap ValueEquities

Foreign DevelopedBlend

Small Cap Equities

Target Asset AllocationActual Asset Allocation

Actual vs Target Asset AllocationAs of December 31, 2016


10

Standard Deviation (Risk)6.005.004.003.002.001.000.00

Ann

ualiz

ed R

ate

of R

etur

n (%

)

5.00

4.00

3.00

2.00

1.00

0.00

Return Std Dev Beta Alpha R-Squared Sharpe Ratio Composite 4.71 5.67 1.09 -0.51 90.75 0.81 Policy Index 4.83 4.95 1.00 0.00 100.00 0.95 3 Mth T-Bill 0.14 0.07 1.00 0.00 100.00 0.00

Policy Index

3 Mth T-Bill

CompositePolicy Index

3 Mth T-Bill

More ReturnLess Risk

More ReturnMore Risk

Less ReturnLess Risk

Less ReturnMore Risk

Risk versus Reward AnalysisDecember 31, 2013 Through December 31, 2016

returns. See IMPORTANT INFORMATION at end of report for details.official record of your holdings, balances, transactions and security values and are not amended or superseded by any of the information presented in this report. Information is current as of the date shown. Past performance is no guarantee of future This report is provided for informational purposes only. The information shown was obtained from sources believed to be reliable, the accuracy of which cannot be guaranteed. Account statements provided by UBS or other financial institutions are the

11

Standard Deviation (Risk)7.006.005.004.003.002.001.000.00

Ann

ualiz

ed R

ate

of R

etur

n (%

)

9.00

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00

-1.00

Return Std Dev Beta Alpha R-Squared Sharpe Ratio Composite 8.73 6.38 1.11 -0.14 94.54 1.35 Policy Index 8.05 5.62 1.00 0.00 100.00 1.41 3 Mth T-Bill 0.11 0.06 1.00 0.00 100.00 0.00

Policy Index

3 Mth T-Bill

Composite

Policy Index

3 Mth T-Bill







12

Standard Deviation (Risk)13.0012.0011.0010.009.008.007.006.005.004.003.002.001.000.00-1.00

Ann

ualiz

ed R

ate

of R

etur

n (%

)

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00

Return Std Dev Beta Alpha R-Squared Sharpe Ratio Composite 6.35 9.81 0.90 1.27 96.54 0.58 Policy Index 5.46 10.70 1.00 0.00 100.00 0.45 3 Mth T-Bill 0.65 0.38 1.00 0.00 100.00 0.00

Policy Index

3 Mth T-Bill

Composite

Policy Index

3 Mth T-Bill







13

Rate

of

Retu

rn (%

)

12

10

8

6

4

2

0

-2

Quarter Calendar YTD Fiscal YTD One Year Three Years Five Years Since Inception Highest Value 2.40 11.25 11.25 11.25 6.63 10.46 6.35 First Quartile 1.33 8.49 8.49 8.49 5.47 9.08 5.62 Median Value 0.71 7.80 7.80 7.80 4.77 8.31 5.15 Third Quartile 0.05 6.99 6.99 6.99 4.09 7.41 4.66 Lowest Value -1.68 0.46 0.46 0.46 0.46 0.36 1.30 Mean 0.65 7.60 7.60 7.60 4.71 7.96 5.07

Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank Gwinnett County 0.32 70 6.88 76 6.88 76 6.88 76 4.71 53 8.73 30 6.35 1 Policy Index 0.06 75 7.95 44 7.95 44 7.95 44 4.83 47 8.05 56 5.46 31 Dynamic Index 0.56 57 8.55 22 8.55 22 8.55 22 4.65 56 8.12 53 N/A N/A

Rate

of

Retu

rn (%

)

30

20

10

0

-10

-20

-30

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Highest Value 11.25 2.93 9.98 22.28 17.41 9.65 21.44 33.98 3.71 17.27 First Quartile 8.49 1.21 7.42 16.75 13.87 2.56 14.38 23.09 -23.76 9.68 Median Value 7.80 0.41 6.66 14.33 12.88 0.98 13.13 19.74 -26.68 8.28 Third Quartile 6.99 -0.74 5.44 11.55 12.21 0.19 12.11 17.22 -28.45 7.65 Lowest Value 0.46 -6.75 0.43 -0.59 0.39 -3.76 1.03 0.90 -32.95 1.76 Mean 7.60 0.27 6.45 13.66 12.32 1.48 13.07 19.41 -24.91 8.77

Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank Gwinnett County 6.88 76 0.11 62 7.30 27 17.85 19 12.34 69 2.01 29 15.18 12 22.23 27 -21.51 13 8.08 59 Policy Index 7.95 44 -0.73 75 7.49 22 14.36 50 11.79 81 1.71 35 14.38 25 23.40 21 -24.20 27 6.23 93 Dynamic Index 8.55 22 -1.73 92 7.45 22 15.65 33 11.48 81 1.17 47 13.65 42 19.45 55 -24.15 27 N/A N/A

Annual Periods

Trailing Periods

Composite Peer Universe Comparison versus BNY Mellon Public Funds Greater Than $1 Billion Managers

returns. See IMPORTANT INFORMATION at end of report for details.official record of your holdings, balances, transactions and security values and are not amended or superseded by any of the information presented in this report. Information is current as of the date shown. Past performance is no guarantee of futureThis report is provided for informational purposes only. The information shown was obtained from sources believed to be reliable, the accuracy of which cannot be guaranteed. Account statements provided by UBS or other financial institiutions are the

14

COMPOSITE BENCHMARK

12/01/2011 - Present 35.00% Bloomberg Barclays Aggregate Bond 15.00% MSCI ACWI ex US Net 12.50% Russell 1000 Growth 12.50% Russell 1000 Value 7.50% Russell 2000 7.50% Russell Midcap 5.00% Citigroup World Gov't Bond 5.00% NAREIT Equity 06/30/2005 - 11/30/2011 35.00% Bloomberg Barclays Aggregate Bond 15.00% MSCI ACWI ex US Net 12.50% Russell 1000 Growth 12.50% Russell 1000 Value 7.50% Russell 2000 7.50% Russell Midcap 5.00% JP Morgan Emerging Mkt Bnd + Index 5.00% NAREIT Equity

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

Benchmark Comparisons Used In This Report


15

IMPORTANT INFORMATION

This report is provided for informational purposes only, does not constitute an offer to buy or sell securities or investment products, does not constitute a recommendation that you buy, sell or hold securities or investment products,and is current as of the date shown. It may include information regarding your Institutional Consulting accounts held at various UBS entities including UBS Financial Services Inc., UBS Securities LLC and UBS AG (collectively, "UBS" or"UBS entities"), as well as accounts you hold at other financial institutions. Accounts included in this report are identified at the beginning of the report. Also, information may be shown for individual accounts or as one or morecombined portfolios; the accounts included in each portfolio are also identified at the beginning of the report.

Investment Monitoring: Neither UBS nor any of its employees will track or monitor specific investments you make to determine whether they complement your Investment Policy, unless the Plan has engaged UBS for such services.

Accounts and Assets Included: UBS account statements provide the official records of holdings, balances, transactions, and security values of assets held in UBS accounts and are not replaced, amended or superseded by any of theinformation presented in this report. If assets that you hold at other financial institutions are included in this report, they are being provided as part of your UBS IC Consulting Services Agreement or you have asked us to include thoseassets as an accommodation, but they are not included as part of your UBS IC Consulting Services Agreement with us. In either situation, the inclusion of those assets is based on information, including pricing and transactionalinformation, furnished to UBS. You should review the account statements and other documentation provided by other financial institutions for their record of holdings, balances, transactions, and security values of assets held in thoseaccounts, as well as notices, disclosures and other information important to you, and may also serve as a reference should questions arise regarding the accuracy of the information in this report. UBS Financial Services Inc. SIPCcoverage would only apply to those assets respectively held at UBS Financial Services Inc. You should contact your financial representative at any other financial institution where you hold an account to determine the availability ofSIPC coverage, if any. UBS has not verified and is not responsible for the accuracy or completeness of information regarding assets held at other financial institutions.

We require that you hold and purchase only eligible managed assets in your UBS advisory accounts. Please contact your UBS Institutional Consultant for a list of the eligible assets in your program. These reports may provideperformance information for eligible and ineligible assets in a fee-based program. Since ineligible assets are not considered fee-based program assets, the inclusion of such securities will distort the actual performance of your advisoryassets. As a result, the performance reflected in this report can vary substantially from the individual account performance reflected in the performance reports provided to you as part of those programs. For fee-based programs, feesare charged on the market value of eligible assets in the accounts and assessed quarterly in advance, prorated according to the number of calendar days in the billing period. Neither UBS nor your UBS Institutional Consultant will actas your investment adviser with respect to ineligible assets. The investment advisory programs and brokerage accounts we offer are separate and distinct and each is governed by different laws and separate contracts with you.

Unless you enter into a separate written contractual arrangement with UBS providing otherwise, you control the investment and reinvestment of the assets in any retirement account held with UBS and neither UBS nor your FinancialAdvisor has the authority or responsibility to act as a fiduciary or provide "investment advice" (as that term is defined in ERISA, the Internal Revenue Code or elsewhere) with respect to your assets.

Pricing of Securities: All securities held in UBS accounts are priced as of the end of the period shown unless otherwise noted and reflect the last recorded transaction of all listed securities, options and OTC NASDAQ securities, whenavailable. Less actively traded securities may be priced using a computerized valuation model and may not reflect an actual market price or value. To obtain current quotations, when available, contact your Institutional Consultant. CDprices may be derived using a computerized valuation model and therefore represent an estimated market value. Deposits or securities denominated in currencies other than U.S. dollars may be reflected at the exchange rate as of thedate of these reports. To obtain precise U.S. dollar values for these deposits or securities at a time before the date of these reports, contact your Institutional Consultant. Prices may or may not represent current or future market value.Every reasonable attempt has been made to accurately price securities; however, no warranty is made with respect to any security's price. Securities that have no readily available market value are displayed at the most recentlyobtainable price. Such pricing may affect the performance information provided in these reports. The services UBS provides to you may be based on and/or include information obtained from third-party sources. Assets held at otherfinancial institutions reflect the price provided by the respective institution or you. UBS will not independently verify pricing information obtained from third-party sources and cannot guarantee the accuracy of such third-partyinformation. If pricing is indicated as "NA", the required data for that field was not provided by the other financial institution or you; this will affect the performance information provided in these reports.

Performance Analytics: Unless otherwise noted, performance shown is based on Time Weighted Rate of Return. Periods greater than one year have been annualized, but annual performance may not represent a full calendar yeardepending on the inception date of the first account included in these reports. Standard deviations are shown only for periods of 12 months or longer. This report may reflect performance before the deduction of manager fees and itdoes reflect performance before the deduction of your UBS Institutional Consulting advisory fees. The payment of fees and expenses will reduce the performance of the account and the reduction in performance will have acumulative effect over time. The net effect of the payment of fees on the annualized performance, and the compounded or cumulative effect over time, is dependent on the amount of the fee and the account's investmentperformance. For example, an account that experiences an annual gross performance of 10% but incurs a 2.8% annual fee that is deducted quarterly on a prorated basis, will experience net annual performance of 7.1%, a reductionof 2.9% per year. Compounding will similarly affect the account's performance on a cumulative basis.

Performance information incorporates data as of the date your accounts became available for these reports, not as of your initial acquisition of a particular investment unless performance history is imported at client's request. Forreports that reflect combined account information, the Performance Start Date will be the earliest performance start date of any of the individual accounts selected for the consolidation time period. If an individual account'sperformance information is not available for a full reporting time period (month to date, quarter to date, year to date or performance to date), that account's information will only be included for the period when available. Forconsolidated accounts that include different account Performance Start Dates, the consolidated Additions/Withdrawals, Income Earned and Investment Appreciation/ Depreciation will include all activity that occurred during theconsolidated reporting time period. Accounts that hold or held insurance products will be reported on from the month end date of when insurance and annuity activity could be obtained from the carrier. To the extent that yourhistorical data contains a mixture of net and gross performance history related to manager or advisory fees, those distinctions will impact your performance reports to the extent that the different methods of reporting are blended.

Note that various factors, including unpriced securities and certain holdings, adjustments or activity may cause the results shown in this report to differ from actual performance (see the Performance Reconciliation Adjustments sectionfor detail on differences between your Custodial statement and information used to create this performance report). Note that these results may differ from other performance reports provided to you by UBS. Performance informationmay be impacted by the different ways each UBS entity or third party financial institution respectively records trade executions. Past performance is no guarantee of future results. Neither the UBS entities nor any of their respectiverepresentatives provide tax or legal advice. You must consult with your legal or tax advisors regarding your personal circumstances.


93

Benchmark Index Information: For comparison purposes, these reports may contain a number of general broad market indices, which were selected to demonstrate the performance of broad market indicators that are readilyrecognized, rather than for direct performance comparisons, and do not reflect the performance of actual investments. Depending on your accounts' holdings and your investment objectives, these indices may not be an appropriatemeasure for comparison purposes, and are therefore presented for illustrative purposes only. The selection and use of benchmarks is not a promise or guarantee that your accounts will meet or exceed the stated benchmarks.Benchmark information is illustrative and relates to historical performance of market indexes and not the performance of actual investments. Indexes are not available for direct investment and reflect an unmanaged universe ofsecurities. Indices assume no management, custody, transaction fees or expenses that would lower the performance results, and assume reinvestment of dividends and capital gains. Information about indices is based on informationobtained from sources believed to be reliable, but no independent verification has been made. UBS does not guarantee the accuracy or completeness of any index information presented. Market index data is subject to review andrevision, and UBS reserves the right to substitute indices or display only those indices for which current updated information is available. Information regarding the indexes shown in this report can be found at the end of this report.

Risk Considerations: Some of the general risk considerations associated with the investment options included in this report are described below. The descriptions are not meant to be a complete list of all investment risks. For morecomplete information regarding fees, expenses, risks and restrictions associated with these investments please review the offering documents and marketing materials. Investors should consult their tax advisor about their specific taxsituation before investing in any securities. In addition, clients should familiarize themselves with the particular market risks and the other risks associated with the specific investment.All investments contain risk and may lose value.

Offshore Funds: Offshore mutual funds are not registered with the Securities and Exchange Commission and may not be sold to any person who is a citizen or resident of the United States.

Alternative Investments: Non-traditional asset classes are alternative investments that include hedge funds, private equity, and private real estate (collectively, non-traditional or alternative investments). These investments can besubject to substantial risks (including the risks associated with limited liquidity, the use of leverage, short-sales and concentrated positions), may involve complex tax structures and strategies, and may not be easily valued. The risks ofalternative investments should be carefully considered in light of your investment objectives, risk tolerance and net worth. Alternative investments are speculative and entail substantial risks, which may place your capital at risk.Alternative investments may not have been registered with the Securities and Exchange Commission or under any state securities laws. The market for such investments may be highly illiquid and subjectively valued, and these reportsprovide values for informational purposes only. Accuracy is not guaranteed. These values may differ substantially from prices, if any, at which a unit may be bought or sold and do not necessarily represent the value you would receivefrom the issuer upon liquidation. Issuer estimated values, if any, are generally updated on a regular (annual or semi-annual) basis and are supplied to us by the issuer, but may be calculated based on different information from what isused by third parties to derive their estimated values.

Fixed Income: Investing in the fixed income market is subject to risks including market, interest rate, issuer, credit, default and inflation risk. An investment in a portfolio may be worth more or less than its original cost whenredeemed. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management, default risk, and the risk that the position could not be closed when most advantageous. Investing in derivativescould lose more than the amount invested.

Variable Annuities: A variable deferred annuity is a long-term financial product designed for retirement purposes. It is a contractual agreement in which payment(s) are made to an insurance company, which agrees to pay out anincome or a lump sum amount at a later date. There are fees and charges associated with a variable annuity contract, which include, but are not limited to, operations charges, sales and surrender charges, administrative fees, andadditional charges for optional benefits. Variable annuities are sold by prospectus and you should carefully consider important information on the subaccounts's investment objectives, risk, charges and expenses. Please read theprospectus and offering documents carefully before you invest. Your Financial Advisor can provide a copy of the prospectus. For current month-end returns: http://advisor.morningstar.com/familyinfo.asp.

Withdrawals from an annuity contract are taxable as ordinary income, not as capital gains and, if made prior to age 59 and 1/2, may be subject to an additional 10% federal income tax penalty. Withdrawals may also be subject tosurrender charges. Withdrawals will reduce the death benefit, living benefits and cash surrender value. For tax purposes, withdrawals will come from any gain in the contract first. Please see the prospectus for complete details.Amounts in the annuity's variable investment portfolios are subject to fluctuation in value and market risk, including loss of principal.

Unregistered group variable annuities and registered group variable annuities that are solely available for use in qualified plans are rated and ranked based on their position within the bell curve of the open end fund peer group (a.k.a.category), rather than the variable annuity subaccount peer group. These ratings and ranks are calculated by using an overlay of the open end fund peer group break points and therefore do not contribute to the category average ornumber of funds within the peer group.

For variable annuity subaccounts, standardized return is total return based on its inception date within the separate account and is adjusted to reflect recurring and non-recurring charges such as surrender fees, contract charges,maximum front-end load, maximum deferred load, maximum M&E risk charge, administration fees, and actual ongoing fund-level expenses. The benchmark used for each individual subaccount performance is an index that has beenassigned to the particular manager or fund.

Mutual Fund Performance Information: Mutual Funds are sold by prospectus and you should carefully consider important information on the fund's investment objectives, risk, charges and expenses. Please read the prospectusand offering documents carefully before you invest. Your UBS Institutional Consultant can provide a copy of the prospectus. For current month-end returns: http://advisor.morningstar.com/familyinfo.asp.

This analysis may incorporate mutual fund and exchange traded fund performance results. Analytics shown are calculated based on the fund's Net Asset Value, which may reflect the reinvestment of dividends and capital gains, as wellas the deduction of 12b-1 fees and fund internal expenses (e.g. fund management fees). The analytics do not reflect the deduction of the sales load, where applicable, the UBS Consulting fee(s), where applicable, or the impact oftaxes. Had the sales load, fee or taxes been included, the results used in this analysis would have been reduced.

Wilshire Trust Universe Comparison Service Information: These reports may contain comparative peer performance data provided by Wilshire Associates Incorporated (Wilshire®), entitled "Quartile Ranking Comparison." Outputwill be presented as a universe organized by asset type, plan type, plan size or other basis. Wilshire®, the Wilshire Trust Universe Comparison Service® and TUCS® are service marks of Wilshire Associates Incorporated and have beenlicensed for use by UBS Financial Services Inc. All content of TUCS is ©2016 Wilshire Associates Incorporated, all rights reserved.

Policy Index: A point of reference for evaluating a portfolio's investment performance. A policy Index can be comprised of single or multiple benchmarks (weighted blend). Portfolios with multiple benchmarks will be depicted with a


94

description of benchmarks and weights that comprise the policy.

Gain/(Loss) Information: When data is available from UBS, estimated unrealized gains/losses are calculated for individual security lots. For assets transferred from another financial institution, gain/loss information will be reflectedonly for the period of time the assets have been held at UBS entities. For assets held at other financial institutions, information provided by that entity, if any, is reflected. Total realized gain/loss information may include calculationsbased upon non-UBS entities cost basis information. UBS Financial Services Inc. does not independently verify or guarantee the accuracy or validity of any information provided by sources other than UBS Financial Services Inc. Whenoriginal cost information is unavailable, gain/loss amounts will represent current market value and total gains/losses may be inaccurate. Date information for when a particular security was acquired, when available, appears on thesereports. When no acquisition date is provided for a security, these reports reflect "N/A" and omit this information. As a result, these figures may not be accurate and are provided for informational purposes only.

Interest and Dividend Income: When shown on this report, information does not reflect your account's tax status or reporting requirements. You should use only official IRS forms for tax reporting purposes. The classification ofprivate investment distributions can only be determined by referring to the official year-end tax-reporting document provided by the issuer.

Contributions and Withdrawals: When shown on a report, information regarding contributions and withdrawals may represent the net value of all cash and securities contributions and withdrawals, and may include program fees(including wrap fees) and other fees added to or subtracted from your accounts from the first day to the last day of the period covered by these reports. Program fees may be separately identified or included in withdrawals exceptwhen paid via an invoice or through a separate account billing arrangement.

Cash Flow: Cash Flow analysis is based on the historical dividend, coupon and interest payments you have received as of the Record Date in connection with the securities listed and assumes that you will continue to hold thesecurities for the periods for which cash flows are projected. This may or may not include principal paybacks for the securities listed. These potential cash flows are subject to change due to a variety of reasons, including but notlimited to, contractual provisions, changes in corporate policies, changes in the value of the underlying securities and interest rate fluctuations. The effect of a call on any security(s) and the consequential impact on its potential cashflow(s) is not reflected in this report. Payments that occur in the same month in which the report is generated -- but prior to the report run ("As of") date -- are not reflected in this report. In determining the potential cash flows, UBSrelies on information obtained from third party services it believes to be reliable but does not independently verify or guarantee the accuracy or validity of any information provided by third parties. Cash flows for mortgage-backed,asset-backed, factored, and other pass-through securities are based on the assumptions that the current face amount, principal pay-down, interest payment and payment frequency remain constant. Calculations may include principalpayments, are intended to be an estimate of future projected interest cash flows and do not in any way guarantee accuracy.

Important information about advisory & brokerage services: As a firm providing wealth management services to clients, we offer both investment advisory and brokerage services. These services are separate and distinct, differ inmaterial ways and are governed by different laws and separate contracts. For more information on the distinctions between our brokerage and investment advisory services, please speak with your Financial Advisor or visit our websiteat <http://ubs.com/workingwithus>.

While we strive to make sure the nature of our services is clear in the materials we publish, if at any time you would like clarification on the nature of your accounts or the services you are receiving, please speak with your UBSInstitutional Consultant.


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Calculation Definitions

Alpha: Alpha measures the difference between an investment's actual performance, and its expected performance as indicated by the returns of a selected market index. A positive Alpha indicates the risk-adjusted performance isabove that index. In calculating Alpha, Standard Deviation (total risk) is used as risk measure. Alpha is often used to judge the value added or subtracted by a manager.

Appreciation/Depreciation: Appreciation or Depreciation is the change in market value minus net cash flows. The value indicates by how much the portfolio value has changed due to changes in asset values. Appreciation would bean increase, Depreciation would be a decrease.

Average Exposure: Average Exposure is generally, the average allocation to a segment or an asset. Calculated as the beginning market value plus the weighted net cash flows as a percentage of the total portfolio market value.

Beta: Beta is defined as a Manager's sensitivity to market movements and is used to evaluate market related, or systematic risk. Beta is a measure of the linear relationship, over time, of the Manager's returns and those of theBenchmark. Beta is computed by regressing the Manager's excess returns over the risk free rate (cash proxy) against the excess returns of the Benchmark over the risk free rate. An investment that is as equally volatile as the marketwill have a Beta of 1.0; an investment half as volatile as the market will have a Beta of 0.5; and so on. Thus, Betas higher than 1.0 indicate that the fund is more volatile than the market.

Composite Benchmark: The Composite Benchmark is a weighted average benchmark based on the allocation of funds within each of the portfolios in the composite and the risk index assigned to each portfolio.

Correlation (R): The Correlation represents the degree to which investments move in tandem with one another and is a critical component of diversified portfolio construction. The Correlation varies between a minimum of -1 (movein opposite direction) and a maximum of 1 (completely correlated). Lower Correlations enhance diversification and lead to better risk-adjusted returns within diversified portfolios. An R of less than 0.3 is often considered lowCorrelation.

Current Yield: This measure looks at the current price of a bond instead of its face value and represents the return an investor would expect if he or she purchased the bond and held it for a year. This measure is not an accuratereflection of the actual return that an investor will receive in all cases because bond and stock prices are constantly changing due to market factors.

Distribution of Excess Returns: Distribution of Excess Returns displays an arrangement of statistical data that exhibits the frequency of occurrence of the investment's returns in excess of the selected Market Index.

Down Market (Mkt) Capture Ratio: Down Market Capture Ratio is a measure of an investment's performance in down markets relative to the market itself. A down market is one in which the market's return is less than zero. Thelower the investment's Down Market Capture Ratio, the better the investment protected capital during a market decline. A negative Down Market Capture Ratio indicates that an investment's returns rose while the market declined.

Downside Capture Return: The downside capture return is the cumulative performance of the portfolio in all periods during which the risk benchmark posted a negative return.

Downside Probability: The downside probability is the ratio of the number of periods during which the portfolio posted a negative return to the total number of periods under study. If, for example, during a 12 month span, theportfolio realized 5 months of negative returns, the downside probability would be equal to 5/12 or 42 percent. The sum of the downside and upside probabilities must equal 1.0. The downside probability does not consider the extentto which the portfolio will fail to exceed the target index. It merely considers the likelihood that the target will not be exceeded. It is important to bear in mind this point when comparing the downside probabilities of more than oneportfolio. It is not necessarily correct, for example, to deem portfolio A riskier than portfolio B simply because A has a higher downside probability.

Downside Risk (Semi Standard Deviation, Semi Std Dev, or Downside Deviation): Downside Risk only identifies volatility on the down side. Downside Risk measures the variability of returns below zero, whereas StandardDeviation attributes volatility in either direction to risk. The Downside Risk method calculates the deviations below zero for each observed return. Each time a return falls below zero, the sum is divided by the number of observationsand the square root is taken. This result is then shown on an annualized basis.

Dynamic Index: A weighted average blended benchmark of the risk indices assigned to each asset class, based on the asset allocation of the portfolio for a given period. The benchmark index weighting adjusts with changes to theasset allocation. A Dynamic Index should not be used when measuring against the client's Investment Policy Statement.

Effective Duration: A duration calculation for bonds with embedded options. Effective duration takes into account that expected cash flows will fluctuate as interest rates change.

Excess: Denotes that a statistic is being measured relative to the Market Index selected. The data set analyzed consists of the periodic differences between the investment's measure and the selected Market Index's definition.

Expense Ratio: Often referred to as the Net Expense Ratio, Morningstar pulls the net annual expense ratio from the fund's audited annual report. Annual-report expense ratios reflect the actual fees charged during a particular fiscalyear. The annual report expense ratio for a fund of funds is the wrap or sponsor fee only. The expense ratio expresses the percentage of assets deducted each fiscal year for fund expenses, including 12b-1 fees, management fees,administrative fees, operating costs, and all other asset-based costs incurred by the fund. Portfolio transaction fees, or brokerage costs, as well as initial or deferred sales charges are not included in the expense ratio. The expense ratio,which is deducted from the fund's average net assets, is accrued on a daily basis. If the fund's assets are small, its expense ratio can be quite high because the fund must meet its expenses from a restricted asset base. Conversely, asthe net assets of the fund grow, the expense percentage should ideally diminish as expenses are spread across the wider base. Funds may also opt to waive all or a portion of the expenses that make up their overall expense ratio.

Gross Dollar Weighted Return: Gross Dollar Weighted Return is the internal rate of return, excluding money manager fees.

Gross Expense Ratio: Represents the total gross expenses (net expenses with waivers added back in) divided by the fund's average net assets. If it is not equal to the net expense ratio, the gross expense ratio portrays the fund'sexpenses had the fund not waived a portion, or all, of its fees. Thus, to some degree, it is an indication of fee contracts. Some fee waivers have an expiration date; other waivers are in place indefinitely.


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Gross Time Weighted Return: Gross Time Weighted Return is the Modified Dietz return, excluding money manager fees.

Index Value: Index Value is the unit value series based on the return stream. It can be used to calculate rates of return between any two dates in the report.

Information Ratio: The Information Ratio is a measure of value added by an investment manager. It is the ratio of (annualized) excess return above the selected Market Index to (annualized) Tracking Error. Excess return is calculatedby linking the difference of the manager's return for each period minus the selected Market Index return for each period, then annualizing the result.

Manager Capture Ratio: The Manager Capture Ratio is manager return divided by the selected Market Index return. It shows what portion of the market performance was captured by the manager under certain market conditions:up market, down market, or both.

Market Experience: Market Experience is the presumable market value of the portfolio if it and its cash flows had grown at the policy index rate of return. It lets the reader know if active management has aided or hurt the portfolio.

Net Cash Flow: For the total portfolio, net cash flow is aggregate contributions minus aggregate withdrawals. At the asset class level, net cash flow is aggregate purchases minus aggregate sales minus aggregate income. It is used inthe numerator of the Modified Dietz return calculation. It is the same as "New Money" and "Flow".

Net Dollar Weighted Return: Net Dollar Weighted Returns is the internal rate of return, including money manager fees.

Net Time Weighted Return: Net Time Weighted Return is the Modified Dietz return, including money manager fees.

New Money: For the total portfolio, New Money is aggregate contributions minus aggregate withdrawals. At the asset class level, New Money is aggregate purchases minus aggregate sales minus aggregate income. It is used in thenumerator of the Modified Dietz return calculation. It is the same as "Net Cash Flow" and "Flow".

Policy Index: A point of reference for evaluating a portfolio's investment performance. A policy Index can be comprised of single or multiple benchmarks (weighted blend). Portfolios with multiple benchmarks will be depicted with adescription of benchmarks and weights that comprise the policy.

Rate of Return, ROR, Return %, ROI: All Return terms refer to the Modified Dietz return.

Relative Risk: Relative risk is simply the ratio of the standard deviation of the portfolio to the standard deviation of the risk index. The statistic reveals how much of the variation of the risk index is "shared" by the portfolio. A relativerisk of 1.0 indicates that the portfolio has the same level of return variability as the risk index. A relative risk of less than 1.0 indicates that the portfolio has shown a lower dispersion of returns than the index. A relative risk in excess of1.0 indicates that the portfolio returns have been more dispersed than those of the index.

Riskless Index: The theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. The 3 monthT-Bill is the usual index used for riskless.

R-Squared (R2): The diversification measure R2 indicates the percentage of volatility in portfolio returns which can be "explained" by market volatility. This statistic indicates the degree to which the observed values of one variable,such as the returns of a managed portfolio, can be explained by, or are associated with the values of another variable, such as a Market Index. It is especially helpful in assessing how likely it is that Alpha and Beta are statisticallysignificant. The R2 values generally range from 0.0 to 1.0. An investment with an R2 of 1.0 is perfectly correlated with the market whereas an investment with an R2 of 0.0 will behave independently of the market. An R2 of 0.95, forexample, implies that 95% of the fluctuations in a portfolio are explained by fluctuations in the market.

Sector Allocations: The percentage a manager has allocated to specific economic sectors.

Sharpe Ratio: The Sharpe Ratio indicates the excess return per unit of total risk as measured by Standard Deviation. It is a ratio of the arithmetic average of excess returns over the risk free rate to the Standard Deviation. The SharpeRatio is a measure of the premium earned for the risk incurred by the portfolio.

Sortino Ratio: The Sortino Ratio is a measure of reward per unit of risk. With Sortino, the numerator (i.e., reward) is defined as the incremental compounded average return over the minimum acceptable return (MAR). Thedenominator (i.e., risk) is defined as the downside deviation of the returns below the MAR. Since the downside deviation is the standard deviation of those returns which fail to exceed the MAR, the result of the Sortino Ratio is ameasure of the average reward per unit of loss. As with Sharpe and Treynor, the Sortino Ratio only has value when it is used as the basis of comparison between portfolios. The higher the Sortino Ratio, the better.

Standard Deviation: A measure of the extent to which observations in a series vary from the arithmetic mean of the series. The Standard Deviation of a series of asset returns is a measure of volatility or risk of the asset.

Target Allocation: The Target Allocation is the allocation goal of the portfolio.

Tracking Error (Excess Standard Deviation): Tracking Error is a measure of how closely an investment's returns track the returns of the selected Market Index. It is the annualized Standard Deviation of the differences between theinvestment's and the associated index's returns. If an investment tracks its associated index closely, then Tracking Error will be low. If an investment tracks its associated index perfectly, then Tracking Error will be zero.


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Treynor Ratio: The Treynor Ratio is defined as the ratio of the manager's excess geometrically annualized return over the portfolio Beta. Excess returns are computed versus the cash index.

Up Market (Mkt) Capture Ratio: Up Market Capture Ratio is a measure of a product's performance in up markets relative to the market itself. An up market is one in which the market's return is greater than or equal to zero. Thehigher the investment's Up Market Capture Ratio, the better the investment capitalized on a rising market.

Upside Capture Return: The upside capture return is the cumulative performance of the portfolio in all periods during which the risk benchmark posted a positive return.

Upside Probability: The upside probability is the ratio of the number of periods during which the portfolio posted a positive return to the total number of periods under study. If, for example, during a 12 month span, the portfoliorealized 7 months of positive returns, the upside probability would be equal to 7/12 or 58 percent. The sum of upside and downside probabilities must equal 1.0.

Upside Uncertainty: Upside uncertainty measures the variability of portfolio returns that exceed a minimum acceptable return (MAR). Risk, in this instance, is defined as the likelihood that the MAR will not be achieved. Since thestatistic is defined as the variability of returns greater than the MAR, risk is not an issue. Thus, variability on the upside is referred to as uncertainty, not risk. The upside uncertainty is simply the standard deviation of those portfolioreturns that exceed the MAR. The larger the upside uncertainty, the better.

Weighted Average: This is a calculation that looks at the average for the statistic for each security weighted by the allocation by market value for each security.

Weighted Flow: The net cash flows weighted for the duration of the month during which the money manager had access to the funds. It is used in the denominator of the Modified Dietz rate of return calculation.

Yield: Yield refers to the yield to maturity.

YTD: Year to Date.


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Index Definitions

10-Year U.S. Treasury Index: A debt obligation issued by the U.S. Treasury with a term of 10 years.

Barclays Capital Global Aggregate X U.S.: An index consisting of all investment grade securities issued in different currencies and combining the Barclays Aggregate, Barclays Pan-European Aggregate and Barclays Global Treasuryindexes. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities and U.S. dollar investment grade, 144A securities.

Barclays Capital Global Emerging Markets: Tracks total returns of external-currency-denominated debt instruments of the emerging markets: Brady bonds, loans, Eurobonds, and U.S. dollar-denominated local market instruments.The index covers five regions: Americas, Europe, Asia, Middle East and Africa.

Barclays Capital Muni Bond Index: A capitalization-weighted bond index created by Barclays intended to be a representative of major municipal bonds of all quality ratings.

Barclays Capital U.S. Aggregate Index: Covers the U.S. dollar-denominated, investment grade, fixed rate, taxable bond market segment of SEC-registered securities and includes bonds from the U.S. Treasury, government-related,corporate, mortgage- and asset-backed and commercial mortgage-backed securities.

Barclays Capital U.S. Aggregate Government: Composed of the Barclays U.S. Treasury Bond Index (all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues) and the Agency Bond Index (allpublicly issued debt of U.S. government agencies, quasi-federal corporations, and corporate debt guaranteed by the U.S. government).

Barclays Capital U.S. Aggregate High Yield: Covers the universe of fixed-rate, dollar-denominated, non-convertible, publicly issued, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds and debt issues from countriesdesignated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded but Canadian bonds and SEC-registered global bonds of issuers in non-emerging countries are included. Original issue zeroes, step-up couponstructures and 144As are also included. Bonds must have at least one year to final maturity, at least $150 million par amount outstanding and be rated Ba1 or lower.

Barclays Capital U.S. Aggregate Investment Grade: Covers all publicly issued, fixed-rate, nonconvertible, investment grade corporate debt. Issues are rated at least Baa by Moody's Investors Service or BBB by Standard & Poor's.Total return comprises price appreciation / depreciation and income as a percentage of the original investment.

Barclays Capital U.S. Convertibles Composite: The Barclays Capital U.S. Convertible Bond Index represents the market of U.S. convertible bonds. Convertible bonds are bonds that can be exchanged, at the option of the holder, fora specific number of shares of the issuer's preferred stock or common stock.

Barclays Capital U.S. Treasury - Bills (1-3 months): Is a market value-weighted index of investment-grade fixed-rate public obligations of the U.S. Treasury with maturities of three months, excluding zero coupon strips.

Cambridge U.S. Private Equity: Based on returns data compiled on funds representing more than 70% of the total dollars raised by U.S. leveraged buyout funds, subordinated debt and special situation managers between1986-2008.

Cambridge U.S. Venture Capital Index: Based on returns data compiled for more than 75% of U.S., institutional venture capital assets between 1990-2008.

Dow Jones AIG Commodity Index: Composed of futures contracts on 20 physical commodities. It is composed of commodities traded on U.S. exchanges with the exception of nickel, aluminum and zinc. The Index relies primarily onliquidity data or the relative amount of trading activity to determine its weightings. All data used for both liquidity and production calculations are averaged for a five-year period.

HFRI Distressed & Restructuring: Equally weighted index of investment managers who employ an investment process focused on corporate fixed income instruments, primarily on corporate credit instruments of companies tradingat significant discounts to their value at issuance or obliged (par value) at maturity as a result of either formal bankruptcy proceeding or financial market perception of near-term proceedings. Distressed strategies employ primarily debt(greater than 60%) but also may maintain related equity exposure.

HFRI Equity Hedge: Equally weighted index of investment managers who employ equity hedge strategies, maintaining both long and short positions primarily in equity and equity derivative securities. Equity hedge managers wouldtypically maintain at least 50% exposure to, and may in some cases be entirely invested in, equities both long and short.

HFRI Event Driven: Equally weighted index of investment managers who maintain positions in companies currently or prospectively involved in corporate transactions of a wide variety including but not limited to mergers,restructurings, financial distress, tender offers, shareholder buybacks, debt exchanges, security issuance or other capital structure adjustments. Security types can range from most senior in the capital structure to most junior orsubordinated, and frequently involve additional derivative securities.

HFRI Fund of Funds Index: Fund of funds invested with multiple managers through funds or managed accounts. The strategy accesses a diversified pool of managers with the objective of lowering the risk of investing in one singlemanager. The fund of funds manager has discretion in choosing which strategies and managers to invest in the fund.

HFRI Fund Weighted Composite: An equally weighted return of all funds net of fees in the HFRI monthly indexes. Fund strategies include, but are not limited to: convertible arbitrage, distressed securities, emerging markets, equityhedge, equity market neutral, statistical arbitrage, event driven, macro, market timing, merger and risk arbitrage, relative value, short selling and sector funds.

HFRI Macro: Equally weighted index of investment managers which trade a broad range of strategies in which the investment process is predicated on movements in underlying economic variables and the impact these have onequity, fixed income, hard currency and commodity markets. Managers employ a variety of techniques, both discretionary and systematic analysis, combinations of top down and bottom up theses, quantitative and fundamental


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approaches and long- and short-term holding periods.

HFRI Relative Value: Equally weighted index of investment managers who maintain positions in which the investment thesis is predicated on realization of a valuation discrepancy in the relationship between multiple securities.Managers employ a variety of fundamental and quantitative techniques to establish investment theses, and security types range broadly across equity, fixed income, derivative or other security types.

JP Morgan Global Ex-U.S. Bond Index: Consists of regularly traded, fixed-rate domestic government debt instruments from 12 international bond markets. Countries included are Austria, Belgium, Canada, Denmark, France,Germany, Italy, Japan, the Netherlands, Spain, Sweden and the United Kingdom.

MSCI AC World Index ex USA: Consists of approximately 2,000 securities across 47 markets, with emerging markets representing approximately 18%. MSCI attempts to capture approximately 85% of the market capitalization ineach country.

MSCI EAFE Index (Europe, Australasia, Far East): A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. As of June2007, the MSCI EAFE Index consisted of the following 21 developed market country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand,Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

MSCI Emerging Markets Index: A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. As of November 2008, the MSCI Emerging Markets Index consisted ofthe following 24 emerging market country indexes: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia,South Africa, Taiwan, Thailand and Turkey.

MSCI Europe Index: A free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of the developed markets in Europe. As of June 2007, the MSCI Europe Index consisted ofthe following 16 developed market country indexes: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

MSCI Japan Index: A free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of Japan.

NAREIT Index: Benchmarks the performance of the REIT industry since its inception in 1972. It was designed to provide a comprehensive assessment of overall industry performance. Some REITs available from over-the-countermarkets are not included due to the lack of real-time pricing.

NCREIF Property Index (NPI): A quarterly time series composite total rate of return measure of investment performance of a large pool of individual commercial real estate properties acquired in the private market for investmentpurposes only. All properties in the NPI have been acquired, at least in part, on behalf of tax-exempt institutional investors - the great majority being pension funds. As such, all properties are held in a fiduciary environment.

Russell 1000® Index: Measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based on a combination oftheir market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market.

Russell 1000® Growth Index: Measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000® Value Index: Measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.

Russell 2000® Growth Index: Measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000® Value Index: Measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell Mid-Cap® Growth Index: Measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell mid-cap companies with higher price-to-book ratios and higher forecasted growthvalues.

Russell Mid-Cap® Value Index: Measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell mid-cap companies with lower price-to-book ratios and lower forecasted growth values.

S&P 500 Index: Covers 500 large cap industrial, utility, transportation, and financial companies of the US markets. The index represents about 75% of NYSE market capitalization and 30% of NYSE issues. It is a capitalizationweighted index calculated on a total return basis with dividends reinvested.

TASS Index of CTAs: Is a dollar-weighted index based on historical managed futures performance of CTAs with established track records.

Source of FTSE Data: FTSE International Limited ("FTSE") © FTSE 2016. For important disclaimers in relation to FTSE Data please see the relevant attribution and disclaimer requirements at<http://www.ftse.com/About_Us/Legal/Attribution_Requirements.jsp>.


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©UBS 2016. The key symbol and UBS are among the registered and unregistered trademarks of UBS. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC.

UBS Financial Services Inc.www.ubs.com/financialservicesinc050707-1138

UBS Financial Services Inc. is a subsidiary of UBS AG.

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ManagerYES NO YES NO YES NO YES NO

U.S. EquityColumbia √ NA √ NATCW √ NA √ NABarrow Hanley √ √ √ √The London Company NA NA NA NABlackRock NA NA NA NAAtlanta Capital √ √ √ √Invesco REIT √ √ √ √Fairpointe Capital √ NA √ NAVaughan Nelson √ NA √ NAWilliam Blair √ NA √ NAInternational Equity1607 Capital Partners √ √ √ √Emerging MarketsOppenheimer Develop Markets √ NA NA NABrandes Emerging Markets √ NA NA NAGlobal AllocationGlobal Allocation Funds √ NA NA NAFixed IncomeVoya √ √ √ √Ryan Labs √ NA √ NATempleton Global Bond √ √ √ √Dreyfus International √ √ √ √

Criteria Criteria Criteria List

Manager Status and Watch List 4Q16Compliance with Criteria

1 Year 3/5 Year Cummulative Watch

Q4 2016Gwinnett County Public Employees Retirement System

Downgraded Bonds 4Q16 VOYA INVESTMENTSPosition Description Coupon

Stated Maturity CUSIP

Date of Downgrade

Moody's Rating

S&P Rating

Fitch Rating

Current Face (m)

Market Price

Market Value (m)

Watch List Commentary

Downgraded Bonds 4Q16 RYAN LABSPosition Description Coupon

Stated Maturity CUSIP

Date of Downgrade

Moody's Rating

S&P Rating

Fitch Rating

Current Face (m)

Market Price

Market Value (m)

NO DOWNGRADES

1

NO DOWNGRADES

Downgraded Bonds 4Q16 RYAN LABS

Watch List Commentary

We have gathered the information contained in this report from sources we believe to be reliable; but we do not guarantee the accuracy or completeness of such information, and we assume no liability for damages resulting from or arising out of the use of such information.

1

Templin, Kim

From: Irvine, Paul <[email protected]>Sent: Tuesday, January 17, 2017 4:28 PMTo: Templin, KimCc: Irvine, PaulSubject: RE: Gwinnett Bond Downgrades - Gwinnett Q4

Hi Kim! I hope you had a nice Holiday and New Year’s Eve! This email is to confirm there were no downgrades below investment grade for the Gwinnett Bond portfolio. Have a great day! Paul Irvine Vice President, Client Service Manager Voya Investment Management One Orange Way, C1-S Windsor, CT 06095 Office 860-275-2114 Fax 860-907-8696 Email: [email protected] www.voyainvestments.com Follow us on Twitter | YouTube

Voya Investment Management NYSE: VOYA

From: [email protected] [mailto:[email protected]] Sent: Tuesday, January 17, 2017 2:49 PM To: Irvine, Paul <[email protected]> Subject: RE: Gwinnett Bond Downgrades - Gwinnett Q4 Hi Paul, Happy New Year! I hope you are doing well. Can you please confirm that there were no downgrades "below investment grade" for the Gwinnett Bond Portfolio in Q4? Thank you very much! Take Care, Kim Tel. 404-848-8549 Fax (855) 391-5552 Toll Free 800-233-0141 Ext. 8549

From: Matt SalzilloTo: Templin, KimSubject: RE: Gwinnett Bond Downgrades Q4Date: Wednesday, January 18, 2017 9:37:06 AM

Hi Kim, Happy New Year to you. We had no downgrades in the 4th quarter. Thank youMatt

Matt SalzilloManaging Director, Portfolio ManagerRyan Labs Asset Management500 Fifth Avenue, Suite 2520 | New York, NY 10110Direct: 646.708.8055 | 800.321.2301 Ext. 8055Email: [email protected]: www.ryanlabs.com

-----Original Message-----From: [email protected] [mailto:[email protected]]Sent: Tuesday, January 17, 2017 2:49 PMTo: Matt Salzillo <[email protected]>Subject: RE: Gwinnett Bond Downgrades Q4

Dear Matt,

Happy New Year! I hope you are doing well. I did not see any email notices of downgrades below investmentgrade from you throughout Q4. Can you please confirm there were no downgrades below investment grade for theGwinnett Bond Portfolio?

Thank you very much!

Take Care,KimTel. 404-848-8549Fax (855) 391-5552Toll Free 800-233-0141 Ext. 8549

Please visit our website athttp://financialservicesinc.ubs.com/wealth/E-maildisclaimer.htmlfor important disclosures and information about our e-mail policies. For your protection, please do not transmitorders or instructions by e-mail or include account numbers, Social Security numbers, credit card numbers,passwords, or other personal information.

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Columbia Management 0.60% (60 basis points) on the first $25 million0.45% (45 basis points) on the next $25 million0.40% (40 basis points) on all assets over $50 million

TCW 0.55% on 25mm and >

Barrow Hanley 0.75% of First $10.0 Mil,0.50% of Next $15.0 Mil,0.25% of Next $175.0 Mil

Fairpointe Capital 0.65 Flat

William Blair 0.90 of First $10.0 Mil,0.75% of Next $20.0 Mil,0.65% of Next $20.0 Mil,0.60% of Next $50.0 Mil

Vaughan Nelson 0.85% of First $10.0 Mil,0.75% of Next $15.0 Mil,0.65% of Next $25.0 million or <

Atlanta Capital 0.80% of First $50.0 Mil,0.50% of Next $50.0 Mil

Invesco Real Estate 0.75% of First $10.0 Mil,0.70% of Next $10.0 Mil0.65% Remainder

1607 Capital Partners 0.75% of First $100.0 Mil,0.65% of Next $150.0 Mil,0.50% on 250.0 Mil or >

Brandes Emerging Markets (BEMIX) 1.19% Expense RatioOppenheimer Developing Markets (ODVIX) 0.88% Expense Ratio

Mid Cap Growth

Emerging Markets - Equity

Mid Cap Value

Small Cap Blend

REITS

Foreign Developed Blend

Gwinnett County Public Employees Retirement System Investment Management Fee Schedule

Large Cap Value

Large Cap Growth

Mid Cap Core

Continued

Page 1

Loomis Salyes (LSWWX) 0.93% Expense RatioFirst Eagle (SGIIX) 0.84% Expense RatioPutnam Capital (PVSYX) 1.12% Expense RatioWells Fargo/GMO (WABIX) 1.20% Expense Ratio

Voya Investment Management 0.30% of First $50.0 Mil,0.25% of Next $50.0 Mil,0.18% of Next $400.0 Mil

Ryan Labs 0.30% of First $10.0 Mil,0.28% of Next $10,0 Mil,0.25% of Next $15.0 Mil,0.20% of Next $15.0 Mil,0.145% of Next $50.0 Mil,0.10% of Next $200.0 Mil

Templeton Global Bond (TGBAX) 0.71% Expense RatioDreyfus International Bond I (DIBRX) 0.74 % Expense Ratio

Prepared by:Allen Wright, Earle Dodd, Scott Olsen, Ray VuicichUBS Financial Services Inc.

3455 Peachtree Street, Suite 1700 Atlanta, GA 30326

Global Allocation

Gwinnett County Public Employees Retirement System Investment Management Fee Schedule

This report is provided for informational purposes only. The information shown was obtained from sourced believed to be reliable, the accuracy of which cannot be guaranteed. Information is current as of the date shown.

Emerging Markets - Fixed Income

Fixed Income Taxable Intermediate

Page 2

Gwinnett County Retirement Plans

Fourth Quarter 2016

Defined Contribution Plan Investment Review and Evaluation

DC Advisory


UBS DC Report

2 Alerts Summary

6 Alerts

10 Plan Summary

11 Performance

16 Risk and Return

20 Investment Costs

25 Disclosure

December 31, 2016 Prepared by:UBS Institutional Consulting Group

UBS Financial Services Inc.

FOR INSTITUTIONAL USE ONLY - NOT FOR PARTICIPANT DISTRIBUTION


Alerts Summary

Recent Alerts 01-23-2017Performance Portfolio Operations

Name 3 Year Total Return 5 Year Total Return 3 Yr. Total Return (%Rank in Category)

5 Yr. Total Return (%Rank in Category)

Morningstar Rating forFunds

Morningstar CategoryChange

Manager Change

American Century Mid Cap Value R6 L L L L L L L

American Funds 2015 Trgt Date Retire R6 L L L L L L L









American Funds 2060 Trgt Date Retire R6 — — — — — L L

American Funds Growth Fund of Amer R6 ~ L L L L L L

American Funds Invmt Co of Amer R6 ~ ~ L L L L L

Artisan International Institutional ~ L ~ L L L L

Artisan Mid Cap Institutional ~ ~ ~ L L L L

Baron Growth Instl ~ ~ ~ ~ L L L

BlackRock Equity Index F L L L L L L L

Columbia Small Cap Value Fund II Y ~ L L L L L L

Dreyfus International Stock Index Inv ~ L ~ L L L L

Fidelity® Contrafund® ~ ~ L L L L L

Fidelity® Puritan® L L L L L L L

Franklin Small Cap Growth R6 ~ ~ ~ L ~ L L

Release date 12-31-2016 | UBS DC Report | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information.

©2017 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constituteinvestment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, thisinformation, data, analyses or opinions or their use. This report is supplemental sales literature, and therefore must be preceded or accompanied by a prospectus and disclosure statement. Please read the prospectus carefully.

Page 2 of 40

~Alerts Do Not Meet CriteriaLAlerts Meet Criteria

MPT alerts calculated against the broad benchmark were removed from the alerts section of the report because MPT statistics are being calculated against the category benchmark.Note: funds that display a dash for any data column above are due to lack of data. The Alerts displayed in this report are being provided to assist retirement plan fiduciaries in evaluating the investment options offered under a defined contributionretirement plan. A number of different factors should be considered when choosing to add, remove or maintain retirement plan investment options. Please refer to Important Information on Alerts in back of this report.

For Institutional Use Only – Not For Participant Distribution See Important Information and Disclosures at the end of this Report


Alerts Summary

Recent Alerts 01-23-2017Performance Portfolio Operations

Name 3 Year Total Return 5 Year Total Return 3 Yr. Total Return (%Rank in Category)

5 Yr. Total Return (%Rank in Category)

Morningstar Rating forFunds

Morningstar CategoryChange

Manager Change

Great-West SecureFoundation® Bal Instl L L L L L — L

Invesco Growth and Income R6 L L L L L L L

Janus Balanced N L L L L L L L

JPMorgan High Yield R6 ~ ~ L L L L L

Oppenheimer Developing Markets I ~ L ~ L L L L

Oppenheimer Global I ~ L L L L L L

Pioneer Fundamental Growth K ~ ~ L L L L L

TIAA-CREF Equity Index Instl ~ ~ L L L L L

Vanguard Total Bond Market Index Adm ~ ~ L ~ L L L



Page 3 of 40





Alerts Summary

Recent Alerts 01-23-2017Modern Portfolio Theory

Name 3-Yr. Sharpe Ratio (%Rank in Cat.)

3-Year Alpha - Cat (%Rank in Category)

Upside Capture Ratio - Cat(%Rank in Category)

Downside Capture Ratio -Cat (%Rank in Category)

American Century Mid Cap Value R6 L L L L

American Funds 2015 Trgt Date Retire R6 L L L L









American Funds 2060 Trgt Date Retire R6 — — — —American Funds Growth Fund of Amer R6 L L L L

American Funds Invmt Co of Amer R6 L L L L

Artisan International Institutional ~ ~ ~ ~

Artisan Mid Cap Institutional ~ ~ L ~

Baron Growth Instl ~ ~ ~ L

BlackRock Equity Index F L L L L

Columbia Small Cap Value Fund II Y L L L L

Dreyfus International Stock Index Inv L L L ~

Fidelity® Contrafund® L L ~ L

Fidelity® Puritan® L L L L

Franklin Small Cap Growth R6 ~ ~ L ~



Page 4 of 40





Alerts Summary

Recent Alerts 01-23-2017Modern Portfolio Theory

Name 3-Yr. Sharpe Ratio (%Rank in Cat.)

3-Year Alpha - Cat (%Rank in Category)

Upside Capture Ratio - Cat(%Rank in Category)

Downside Capture Ratio -Cat (%Rank in Category)

Great-West SecureFoundation® Bal Instl L L L L

Invesco Growth and Income R6 L L L ~

Janus Balanced N L L ~ L

JPMorgan High Yield R6 L L L ~

Oppenheimer Developing Markets I ~ ~ ~ L

Oppenheimer Global I L L L ~

Pioneer Fundamental Growth K L L L L

TIAA-CREF Equity Index Instl L L L L

Vanguard Total Bond Market Index Adm L ~ L ~



Page 5 of 40




Total Returns 01-23-2017

3 Year Total Return less than cat BM

Security Name Initial Trigger Value Current Trigger Value Current Comparison Value Current Comparison Subject

American Funds Growth Fund of Amer R6 11.78 (as of 04-11-2016) 8.04 8.55 Russell 1000 Growth TR USDAmerican Funds Invmt Co of Amer R6 8.49 (as of 01-10-2017) 8.49 8.59 Russell 1000 TR USDArtisan International Institutional 2.51 (as of 07-11-2016) -4.66 -1.27 MSCI ACWI Ex USA Growth NR USDArtisan Mid Cap Institutional 9.09 (as of 04-11-2016) 2.54 6.23 Russell Mid Cap Growth TR USDBaron Growth Instl 7.18 (as of 04-11-2016) 2.20 6.23 Russell Mid Cap Growth TR USDColumbia Small Cap Value Fund II Y 8.11 (as of 01-10-2017) 8.11 8.31 Russell 2000 Value TR USDDreyfus International Stock Index Inv 2.01 (as of 09-09-2016) -2.08 -1.78 MSCI ACWI Ex USA NR USDFidelity® Contrafund® 12.15 (as of 04-11-2016) 6.43 8.55 Russell 1000 Growth TR USDFranklin Small Cap Growth R6 6.99 (as of 06-08-2016) 2.73 5.05 Russell 2000 Growth TR USDJPMorgan High Yield R6 1.53 (as of 04-11-2016) 3.78 4.72 BofAML US HY Master II TR USDOppenheimer Developing Markets I -1.06 (as of 08-08-2016) -3.94 -2.55 MSCI EM NR USDOppenheimer Global I 2.46 (as of 01-10-2017) 2.46 3.13 MSCI ACWI NR USDPioneer Fundamental Growth K 8.87 (as of 12-08-2016) 8.34 8.55 Russell 1000 Growth TR USDTIAA-CREF Equity Index Instl 11.13 (as of 04-11-2016) 8.42 8.59 Russell 1000 TR USDVanguard Total Bond Market Index Adm 2.38 (as of 04-11-2016) 2.94 3.03 BBgBarc US Agg Bond TR USD



American Funds Invmt Co of Amer R6 10.75 (as of 04-11-2016) 14.49 14.69 Russell 1000 TR USDArtisan Mid Cap Institutional 9.12 (as of 04-11-2016) 12.22 13.51 Russell Mid Cap Growth TR USDBaron Growth Instl 8.63 (as of 04-11-2016) 11.56 13.51 Russell Mid Cap Growth TR USD



Page 6 of 40

MPT alerts calculated against the broad benchmark were removed from the alerts section of the report because MPT statistics are being calculated against the category benchmark.

All performance rankings are based on each fund's total returns relative to other funds in it's Morningstar Category for each period shown. All other percentage rankings displayed are measured on an absolute basis and compared to its MorningstarCategory for the each period shown.The performance data quoted represents past performance and does not guarantee future results. Then investment return and principal value of an investment will fluctuate; thus an investor's shares, when redeemed, may be worth more or less thantheir original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp. An investment in a mutual fund is notinsured or guaranteed by the FDIC or any other government agency. It is possible to lose money by investing in the fund.The Alerts displayed in this report are being provided to assist retirement plan fiduciaries in evaluating the investment options offered under a defined contribution retirement plan. A number of different factors should be considered when choosing toadd, remove or maintain retirement plan investment options. Please refer to Important Information on Alerts in back of this report.



Alerts

Total Returns 01-23-2017



Fidelity® Contrafund® 11.24 (as of 04-11-2016) 13.46 14.50 Russell 1000 Growth TR USDFranklin Small Cap Growth R6 13.27 (as of 01-10-2017) 13.27 13.74 Russell 2000 Growth TR USDJPMorgan High Yield R6 4.14 (as of 04-11-2016) 6.60 7.35 BofAML US HY Master II TR USDPioneer Fundamental Growth K 13.90 (as of 12-08-2016) 14.14 14.50 Russell 1000 Growth TR USDTIAA-CREF Equity Index Instl 10.99 (as of 04-11-2016) 14.63 14.69 Russell 1000 TR USDVanguard Total Bond Market Index Adm 3.71 (as of 04-11-2016) 2.14 2.23 BBgBarc US Agg Bond TR USD

Total Return % Rank in Category 01-23-2017

3 Yr. Total Return (% Rank in Category) greater than 50


Artisan International Institutional 55.00 (as of 06-08-2016) 94.00 50.00 —Artisan Mid Cap Institutional 57.00 (as of 10-11-2016) 75.00 50.00 —Baron Growth Instl 68.00 (as of 04-11-2016) 80.00 50.00 —Dreyfus International Stock Index Inv 53.00 (as of 07-11-2016) 51.00 50.00 —Franklin Small Cap Growth R6 52.00 (as of 12-08-2016) 63.00 50.00 —Oppenheimer Developing Markets I 65.00 (as of 08-08-2016) 69.00 50.00 —

5 Yr. Total Return (% Rank in Category) greater than 50


Baron Growth Instl 52.00 (as of 01-10-2017) 52.00 50.00 —Vanguard Total Bond Market Index Adm 51.00 (as of 08-08-2016) 69.00 50.00 —



Page 7 of 40





Alerts

Morningstar Ratings 01-23-2017

Morningstar Rating for Funds less than 3


Franklin Small Cap Growth R6 2.00 (as of 12-08-2016) 2.00 3.00 —

MPT % Rank in Category 01-23-2017

3-Yr. Sharpe Ratio (% Rank in Cat.) greater than 50


Artisan International Institutional 55.00 (as of 06-08-2016) 87.00 50.00 —Artisan Mid Cap Institutional 51.00 (as of 07-11-2016) 69.00 50.00 —Baron Growth Instl 64.00 (as of 10-11-2016) 70.00 50.00 —Franklin Small Cap Growth R6 55.00 (as of 12-08-2016) 59.00 50.00 —Oppenheimer Developing Markets I 51.00 (as of 12-08-2016) 59.00 50.00 —

3-Year Alpha - Cat (%Rank in Category) greater than 50


Artisan International Institutional 56.00 (as of 07-18-2016) 92.00 50.00 —Artisan Mid Cap Institutional 52.00 (as of 08-08-2016) 75.00 50.00 —Baron Growth Instl 61.00 (as of 10-11-2016) 68.00 50.00 —Franklin Small Cap Growth R6 60.00 (as of 12-08-2016) 68.00 50.00 —Oppenheimer Developing Markets I 55.00 (as of 12-08-2016) 67.00 50.00 —Vanguard Total Bond Market Index Adm 51.00 (as of 08-08-2016) 54.00 50.00 —



Page 8 of 40





Alerts

MPT % Rank in Category 01-23-2017

Upside Capture Ratio - Cat (%Rank in Category) greater than 50


Artisan International Institutional 84.00 (as of 08-08-2016) 93.00 50.00 —Baron Growth Instl 83.00 (as of 07-18-2016) 88.00 50.00 —Fidelity® Contrafund® 77.00 (as of 07-18-2016) 88.00 50.00 —Janus Balanced N 56.00 (as of 01-10-2017) 56.00 50.00 —Oppenheimer Developing Markets I 56.00 (as of 08-08-2016) 54.00 50.00 —

Downside Capture Ratio - Cat (%Rank in Category) greater than 50


Artisan International Institutional 64.00 (as of 07-18-2016) 66.00 50.00 —Artisan Mid Cap Institutional 74.00 (as of 07-18-2016) 79.00 50.00 —Dreyfus International Stock Index Inv 52.00 (as of 09-09-2016) 52.00 50.00 —Franklin Small Cap Growth R6 76.00 (as of 07-18-2016) 85.00 50.00 —Invesco Growth and Income R6 71.00 (as of 07-18-2016) 58.00 50.00 —JPMorgan High Yield R6 51.00 (as of 08-08-2016) 54.00 50.00 —Oppenheimer Global I 79.00 (as of 07-18-2016) 72.00 50.00 —Vanguard Total Bond Market Index Adm 58.00 (as of 07-18-2016) 73.00 50.00 —



Page 9 of 40





Alerts


Plan SummaryBenchmark Plan Value Total Number of Options

Custom Benchmark 238,597,846.93 31

Composition 12-31-2016

Asset Allocation PortfolioNet %

BmarkNet %

Cash 2.56 0.92US Stocks 63.96 67.98Non-US Stocks 19.25 17.68Bonds 12.75 11.05Other/Not Clsfd 1.49 2.36

Value

Small

Blend

Mid

Growth

Large

Equity Ownership ZoneTM

Plan Domestic Equity International Equity Benchmark

Style Analysis 12-31-2016

Value Blend Growth

LargeM

idSm

all

19 23 31

6 6 8

2 3 2

Equity Investment Style Actual %Geo Avg Cap Plan ($Mil) 35,375.36Geo Avg Cap Bmark ($Mil) 27,994.23

Ltd Mod Ext

HighM

edLow

0 45 0

0 39 0

0 15 0

Fixed-Income Investment Style Actual %Avg Effective Duration (Yrs) 5.36Avg Effective Maturity (Yrs) 7.74Avg Credit Quality —

Composition By Fund 12-31-2016

Fund Name Ticker Plan % Amount $ Fund Name Ticker Plan % Amount $

American Century Mid Cap Value R6 AMDVX 12.89 30,753,635.17 American Funds Growth Fund of Amer R6 RGAGX 9.06 21,610,404.80Fidelity® Contrafund® FCNTX 7.82 18,664,422.48 TIAA-CREF Equity Index Instl TIEIX 5.81 13,856,566.29Vanguard Total Bond Market Index Adm VBTLX 5.24 12,502,304.79 Dreyfus International Stock Index Inv DIISX 4.50 10,746,892.88American Funds 2035 Trgt Date Retire R6 RFFTX 3.96 9,453,027.92 Artisan Mid Cap Institutional APHMX 3.73 8,902,921.02BlackRock Equity Index F — 3.50 8,348,305.90 American Funds 2030 Trgt Date Retire R6 RFETX 3.46 8,265,220.63Oppenheimer Developing Markets I ODVIX 3.46 8,263,727.34 Oppenheimer Global I OGLIX 3.29 7,854,828.03American Funds 2025 Trgt Date Retire R6 RFDTX 3.24 7,722,034.14 American Funds 2045 Trgt Date Retire R6 RFHTX 3.22 7,693,369.95Invesco Growth and Income R6 GIFFX 3.03 7,241,372.49 American Funds 2040 Trgt Date Retire R6 RFGTX 2.84 6,779,163.61American Funds Invmt Co of Amer R6 RICGX 2.51 5,979,304.00 American Funds 2050 Trgt Date Retire R6 RFITX 2.15 5,123,764.61American Funds 2020 Trgt Date Retire R6 RRCTX 2.02 4,820,895.41 Baron Growth Instl BGRIX 1.89 4,509,926.42Columbia Small Cap Value Fund II Y CRRYX 1.84 4,389,151.64 Fidelity® Puritan® FPURX 1.72 4,096,793.20American Funds 2015 Trgt Date Retire R6 RFJTX 1.65 3,930,081.88 JPMorgan High Yield R6 JHYUX 1.58 3,773,408.44Artisan International Institutional APHIX 1.47 3,508,746.57 Pioneer Fundamental Growth K PFGKX 1.27 3,039,353.51



Page 10 of 40For Institutional Use Only – Not For Participant Distribution See Important Information and Disclosures at the end of this Report


Performance

Style Count 12-31-2016Equity Investment Style Fixed-Income Investment Style

Value Blend Growth

LargeM

idSm

all

1 4 6

1 0 2

0 1 1

Ltd Mod Ext

HighM

edLow

0 1 0

0 0 0

0 1 0

Equity Style Options: 16 Fixed-Income Options: 2

* Does not include 13 hybrid funds.

Performance Quartiles 12-31-2016Quartile Rank (Trailing 5 Yr)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

4th Quartile

3rd Quartile

2nd Quartile

1st Quartile

Number of Options

* Category % Rank is not available for 1 holdings.

Fund Performance 12-31-2016Type Inception

DateRet %

YTDRet %3 Mo

Ret %1 Yr

Ret %3 Yr

Ret %5 Yr

Ret %10 Yr

Ret %Since Incep

Gross FundExp Ratio

1 Yr% Rank

3 Yr% Rank

5 Yr% Rank

10 Yr% Rank

Large Value(Fds) Avg — 14.81 6.34 14.81 6.84 12.97 5.38 — 1.52 — — — —Invesco Growth and Income R6 MF 09-24-2012 20.31 10.93 20.31 9.01 14.84 6.65 13.75 0.38 8(1268) 9(1088) 11(934) 18(680)Russell 1000 Value TR USD Idx 12-31-1978 17.34 6.68 17.34 8.59 14.80 5.72 — — — — — —

Large Blend(Fds) Avg — 10.37 3.86 10.37 6.80 13.18 6.07 — 1.25 — — — —American Funds Invmt Co of Amer R6 MF 05-01-2009 14.93 3.16 14.93 8.49 14.49 6.63 14.12 0.30 7(1409) 13(1255) 21(1106) 34(814)TIAA-CREF Equity Index Instl MF 07-01-1999 12.76 4.18 12.76 8.42 14.63 7.06 5.24 0.05 19(1409) 16(1255) 15(1106) 17(814)BlackRock Equity Index F CIT 03-05-1997 11.99 3.83 11.99 8.92 14.71 7.06 7.38 0.00 26(1409) 5(1255) 13(1106) 17(814)Russell 1000 TR USD Idx 12-31-1978 12.05 3.83 12.05 8.59 14.69 7.08 — — — — — —



Page 11 of 40

1. This investment option is not available through UBS. Please see "Performance" in the Disclosure section of this report for additional information.

Performance rankings are based on each fund's total returns relative to other funds in it's Morningstar Category for each period shown.

The performance data quoted represents past performance and does not guarantee future results. Then investment return and principal value of an investment will fluctuate; thus an investor's shares, when redeemed, may be worth more or less thantheir original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp. An investment in a mutual fund is notinsured or guaranteed by the FDIC or any other government agency. Although money market seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.



Performance


DateRet %

YTDRet %3 Mo

Ret %1 Yr

Ret %3 Yr

Ret %5 Yr

Ret %10 Yr

Ret %Since Incep

Gross FundExp Ratio

1 Yr% Rank

3 Yr% Rank

5 Yr% Rank

10 Yr% Rank

Large Growth(Fds) Avg — 3.23 -0.27 3.23 5.70 12.94 6.91 — 1.55 — — — —American Funds Growth Fund of Amer R6 MF 05-01-2009 8.82 1.68 8.82 8.04 15.42 7.22 14.40 0.33 9(1463) 13(1315) 7(1154) 44(809)Fidelity® Contrafund® MF 05-17-1967 3.37 -0.55 3.37 6.43 13.46 7.88 12.20 0.71 48(1463) 41(1315) 41(1154) 24(809)Pioneer Fundamental Growth K MF 12-20-2012 4.04 0.23 4.04 8.34 14.14 8.73 13.66 0.67 44(1463) 10(1315) 26(1154) 9(809)Russell 1000 Growth TR USD Idx 12-31-1978 7.08 1.01 7.08 8.55 14.50 8.33 — — — — — —

Mid-Cap Value(Fds) Avg — 18.06 6.80 18.06 6.84 13.81 6.76 — 1.60 — — — —American Century Mid Cap Value R6 MF 07-26-2013 23.19 7.44 23.19 12.43 16.59 9.43 13.20 0.66 13(399) 1(337) 4(301) 5(207)Russell Mid Cap Value TR USD Idx 12-31-1985 20.00 5.52 20.00 9.45 15.70 7.59 — — — — — —

Mid-Cap Growth(Fds) Avg — 6.03 0.75 6.03 4.03 11.79 6.79 — 1.89 — — — —Artisan Mid Cap Institutional MF 07-03-2000 -0.64 -4.09 -0.64 2.54 12.22 8.99 7.25 0.95 94(644) 75(588) 41(504) 11(368)Baron Growth Instl MF 05-29-2009 6.31 -0.08 6.31 2.20 11.56 6.63 13.85 1.04 44(644) 80(588) 52(504) 58(368)Russell Mid Cap Growth TR USD Idx 12-31-1985 7.33 0.46 7.33 6.23 13.51 7.83 — — — — — —

Small Value(Fds) Avg — 25.99 12.19 25.99 6.63 13.90 6.73 — 2.78 — — — —Columbia Small Cap Value Fund II Y MF 11-08-2012 23.92 12.16 23.92 8.11 15.26 7.87 16.94 0.84 66(405) 32(347) 29(308) 20(195)Russell 2000 Value TR USD Idx 12-31-1978 31.74 14.07 31.74 8.31 15.07 6.26 — — — — — —

Small Growth(Fds) Avg — 11.20 3.34 11.20 3.55 12.33 7.08 — 2.05 — — — —Franklin Small Cap Growth R6 MF 05-01-2013 8.92 -0.55 8.92 2.73 13.27 8.34 11.65 0.64 60(669) 63(599) 32(531) 17(389)Russell 2000 Growth TR USD Idx 12-31-1978 11.32 3.57 11.32 5.05 13.74 7.76 — — — — — —

Foreign Large Blend(Fds) Avg — 0.79 -2.22 0.79 -2.10 5.75 0.54 — 2.08 — — — —Dreyfus International Stock Index Inv MF 06-30-1997 0.98 -1.26 0.98 -2.08 6.01 0.29 3.02 0.61 46(762) 51(606) 46(542) 52(329)MSCI ACWI Ex USA NR USD Idx 01-01-2001 4.50 -1.25 4.50 -1.78 5.00 0.96 — — — — — —



Page 12 of 40






Performance


DateRet %

YTDRet %3 Mo

Ret %1 Yr

Ret %3 Yr

Ret %5 Yr

Ret %10 Yr

Ret %Since Incep

Gross FundExp Ratio

1 Yr% Rank

3 Yr% Rank

5 Yr% Rank

10 Yr% Rank

Foreign Large Growth(Fds) Avg — -2.14 -5.67 -2.14 -1.83 6.15 1.43 — 1.76 — — — —Artisan International Institutional MF 07-01-1997 -9.41 -8.36 -9.41 -4.66 6.44 1.88 7.04 0.95 97(363) 94(312) 46(260) 40(182)MSCI ACWI Ex USA Growth NR USD Idx 01-01-2001 0.12 -5.72 0.12 -1.27 5.34 1.52 — — — — — —

World Stock(Fds) Avg — 5.54 -0.37 5.54 2.10 9.24 3.66 — 2.27 — — — —Oppenheimer Global I MF 01-27-2012 0.59 0.26 0.59 2.46 10.69 4.32 9.66 0.71 85(1015) 41(848) 21(669) 35(372)MSCI ACWI NR USD Idx 01-01-2001 7.86 1.19 7.86 3.13 9.36 3.56 — — — — — —

Diversified Emerging Mkts(Fds) Avg — 8.47 -5.30 8.47 -3.18 1.61 1.32 — 2.81 — — — —Oppenheimer Developing Markets I MF 12-29-2011 7.38 -5.07 7.38 -3.94 3.22 4.42 3.26 0.88 56(813) 69(606) 21(425) 2(173)MSCI EM NR USD Idx 01-01-2001 11.19 -4.16 11.19 -2.55 1.28 1.84 — — — — — —

Intermediate-Term Bond(Fds) Avg — 3.23 -2.54 3.23 2.73 2.61 4.10 — 1.18 — — — —Vanguard Total Bond Market Index Adm MF 11-12-2001 2.60 -3.17 2.60 2.94 2.14 4.29 4.24 0.06 63(985) 40(869) 69(759) 47(541)BBgBarc US Agg Bond TR USD Idx 01-01-1976 2.65 -2.98 2.65 3.03 2.23 4.34 — — — — — —

High Yield Bond(Fds) Avg — 13.30 1.69 13.30 3.23 6.17 5.90 — 1.58 — — — —JPMorgan High Yield R6 MF 02-22-2005 14.00 1.46 14.00 3.78 6.60 6.69 6.87 0.72 42(707) 36(602) 34(477) 20(319)BofAML US HY Master II TR USD Idx 08-29-1986 17.49 1.88 17.49 4.72 7.35 7.34 — — — — — —

Allocation--50% to 70% Equity(Fds) Avg — 7.34 0.99 7.34 3.87 8.04 4.80 — 1.43 — — — —Fidelity® Puritan® MF 04-16-1947 5.03 0.33 5.03 5.78 10.14 5.89 10.90 0.56 84(810) 13(710) 10(606) 17(419)Great-West SecureFoundation® Bal Instl 1 MF 05-01-2015 9.08 1.43 9.08 4.88 8.40 — 3.43 0.31 20(810) 26(710) 40(606) —Janus Balanced N MF 05-31-2012 4.69 2.80 4.69 4.64 9.22 7.03 9.06 0.58 87(810) 32(710) 23(606) 3(419)Morningstar Mod Tgt Risk TR USD Idx 02-18-2009 8.57 0.38 8.57 3.80 7.45 5.24 — — — — — —



Page 13 of 40






Performance


DateRet %

YTDRet %3 Mo

Ret %1 Yr

Ret %3 Yr

Ret %5 Yr

Ret %10 Yr

Ret %Since Incep

Gross FundExp Ratio

1 Yr% Rank

3 Yr% Rank

5 Yr% Rank

10 Yr% Rank

Target-Date 2015(Fds) Avg — 6.12 -0.40 6.12 3.10 6.53 4.10 — 1.44 — — — —American Funds 2015 Trgt Date Retire R6 MF 07-13-2009 7.55 0.01 7.55 4.46 8.04 — 9.51 0.35 7(131) 1(91) 2(70) —Morningstar Lifetime Mod 2015 TR USD Idx 02-18-2009 7.10 -0.76 7.10 3.57 6.48 5.16 — — — — — —

Target-Date 2020(Fds) Avg — 6.23 -0.35 6.23 3.13 6.48 3.71 — 1.40 — — — —American Funds 2020 Trgt Date Retire R6 MF 07-13-2009 7.05 -0.07 7.05 4.61 8.95 — 10.27 0.37 25(221) 1(176) 1(146) —Morningstar Lifetime Mod 2020 TR USD Idx 02-18-2009 7.66 -0.56 7.66 3.80 7.29 5.18 — — — — — —

Target-Date 2025(Fds) Avg — 6.73 0.02 6.73 3.38 7.66 3.93 — 1.51 — — — —American Funds 2025 Trgt Date Retire R6 MF 07-13-2009 7.36 0.10 7.36 4.67 10.40 — 11.34 0.39 28(195) 1(149) 1(113) —Morningstar Lifetime Mod 2025 TR USD Idx 02-18-2009 8.39 -0.12 8.39 4.03 8.27 5.22 — — — — — —

Target-Date 2030(Fds) Avg — 7.33 0.34 7.33 3.53 8.06 3.88 — 1.58 — — — —American Funds 2030 Trgt Date Retire R6 MF 07-13-2009 7.71 0.32 7.71 5.03 11.14 — 11.92 0.41 38(221) 1(176) 1(146) —Morningstar Lifetime Mod 2030 TR USD Idx 02-18-2009 9.26 0.52 9.26 4.21 9.20 5.31 — — — — — —






Page 14 of 40






Performance


DateRet %

YTDRet %3 Mo

Ret %1 Yr

Ret %3 Yr

Ret %5 Yr

Ret %10 Yr

Ret %Since Incep

Gross FundExp Ratio

1 Yr% Rank

3 Yr% Rank

5 Yr% Rank

10 Yr% Rank



Target-Date 2060+(Fds) Avg — 7.81 1.24 7.81 3.31 — — — 15.54 — — — —American Funds 2060 Trgt Date Retire R6 MF 03-27-2015 8.41 0.67 8.41 — — — 3.72 0.60 33(106) — — —Morningstar Lifetime Mod 2060 TR USD Idx 06-23-2014 10.88 1.57 10.88 3.81 9.64 5.29 — — — — — —Standard Benchmark Returns 12-31-2016

Type InceptionDate

Ret %YTD

Ret %3 Mo

Ret %1 Yr

Ret %3 Yr

Ret %5 Yr

Ret %10 Yr

Ret %Since Incep

Gross FundExp Ratio

1 Yr% Rank

3 Yr% Rank

5 Yr% Rank

10 Yr% Rank

S&P 500 TR USD Idx — 11.96 3.82 11.96 8.87 14.66 6.95 — — — — — —BBgBarc US Agg Bond TR USD Idx — 2.65 -2.98 2.65 3.03 2.23 4.34 — — — — — —MSCI EAFE NR USD Idx — 1.00 -0.71 1.00 -1.60 6.53 0.75 — — — — — —USTREAS T-Bill Auction Ave 3 Mon Idx — 0.34 0.11 0.34 0.14 0.11 0.71 — — — — — —



Page 15 of 40






Risk and Return

Risk/Return 12-31-2016

Benchmarks S&P 500 TR USD BBgBarc US Agg Bond TR USD MSCI EAFE NR USD USTREAS T-Bill Auction Ave 3 Mon 5 Year Mean

0.00

16.80

2.40

4.80

9.60

12.00

7.20

14.40

-3.0 -0.2 2.6 5.4 8.2 11.0 13.8 16.6

Low Risk/High Reward

Low Risk/Low Reward High Risk/Low Reward

High Risk/High Reward

12 34

5

67

8

910

11

12

1314

15

16

17

18

19

20

21

22

23

2425 2627282930

5 Year Standard Deviation

* Data not available for 1 options/funds.

Risk/Return Detail 12-31-2016Type Std Dev

5 YrMean

5 YrAlpha

5 YrBeta5 Yr

R25 Yr

InformationRatio 5Yr

Treynor5 Yr

Sharpe Ratio5 Yr

UpsideCapture

5 Yr

DownsideCapture

5 Yr

Large Value(Fds) Avg 10.99 12.97 -1.40 0.99 90.87 -0.62 13.18 1.17 93.65 101.881 Invesco Growth and Income R6 MF 11.40 14.84 -0.25 1.03 91.18 0.01 14.35 1.27 100.55 100.99

Russell 1000 Value TR USD Idx 10.61 14.80 — — — — — 1.35 — —

Large Blend(Fds) Avg 10.89 13.18 -1.39 1.01 93.95 -0.67 13.02 1.19 96.40 106.042 American Funds Invmt Co of Amer R6 MF 10.15 14.49 0.63 0.94 94.38 -0.08 15.28 1.38 97.81 96.473 TIAA-CREF Equity Index Instl MF 10.62 14.63 -0.21 1.01 99.66 -0.10 14.34 1.33 100.70 102.364 BlackRock Equity Index F CIT 10.36 14.71 0.19 0.99 99.60 0.03 14.79 1.37 99.60 98.83

Russell 1000 TR USD Idx 10.48 14.69 — — — — — 1.36 — —





Risk and Return


5 YrMean

5 YrAlpha

5 YrBeta5 Yr

R25 Yr


Treynor5 Yr

Sharpe Ratio5 Yr

UpsideCapture

5 Yr

DownsideCapture

5 Yr

Large Growth(Fds) Avg 11.95 12.94 -1.78 1.04 89.75 -0.46 12.45 1.08 98.39 110.935 American Funds Growth Fund of Amer R6 MF 11.03 15.42 1.16 0.98 93.09 0.32 15.67 1.35 100.28 92.036 Fidelity® Contrafund® MF 10.44 13.46 -0.01 0.93 94.49 -0.41 14.32 1.26 92.48 91.647 Pioneer Fundamental Growth K MF 10.55 14.14 0.51 0.94 93.86 -0.13 14.95 1.30 97.61 97.56

Russell 1000 Growth TR USD Idx 10.89 14.50 — — — — — 1.29 — —

Mid-Cap Value(Fds) Avg 11.99 13.81 -2.05 1.03 90.54 -0.56 13.37 1.15 96.60 109.398 American Century Mid Cap Value R6 MF 9.90 16.59 2.51 0.88 95.53 0.36 18.77 1.60 95.83 81.11

Russell Mid Cap Value TR USD Idx 11.03 15.70 — — — — — 1.38 — —

Mid-Cap Growth(Fds) Avg 12.77 11.79 -1.51 1.01 89.36 -0.47 11.75 0.94 96.86 107.539 Artisan Mid Cap Institutional MF 14.58 12.22 -2.66 1.14 86.88 -0.23 10.63 0.86 104.74 120.4910 Baron Growth Instl MF 11.35 11.56 -0.16 0.88 84.72 -0.42 13.07 1.01 88.70 91.88

Russell Mid Cap Growth TR USD Idx 11.93 13.51 — — — — — 1.12 — —

Small Value(Fds) Avg 14.11 13.90 -0.13 0.94 90.07 -0.24 14.87 1.00 93.64 94.9211 Columbia Small Cap Value Fund II Y MF 13.68 15.26 0.96 0.94 95.85 0.07 16.08 1.10 95.63 90.28

Russell 2000 Value TR USD Idx 14.22 15.07 — — — — — 1.05 — —

Small Growth(Fds) Avg 14.81 12.33 -0.05 0.91 90.39 -0.30 13.71 0.87 90.17 90.5912 Franklin Small Cap Growth R6 MF 16.45 13.27 -0.30 1.00 89.55 -0.09 13.12 0.84 99.67 101.93

Russell 2000 Growth TR USD Idx 15.53 13.74 — — — — — 0.90 — —

Foreign Large Blend(Fds) Avg 12.89 5.75 1.09 0.92 91.06 0.19 6.28 0.50 95.34 89.6213 Dreyfus International Stock Index Inv MF 13.26 6.01 1.13 0.97 94.91 0.33 6.09 0.50 99.96 93.91

MSCI ACWI Ex USA NR USD Idx 13.35 5.00 — — — — — 0.42 — —

Foreign Large Growth(Fds) Avg 12.52 6.15 1.11 0.94 89.69 0.20 6.49 0.53 96.55 90.1014 Artisan International Institutional MF 12.77 6.44 1.36 0.95 88.28 0.25 6.66 0.54 98.82 91.16

MSCI ACWI Ex USA Growth NR USD Idx 12.64 5.34 — — — — — 0.47 — —

World Stock(Fds) Avg 11.89 9.24 0.26 0.97 86.08 -0.04 9.56 0.80 97.38 96.5515 Oppenheimer Global I MF 13.15 10.69 0.63 1.09 88.24 0.29 9.75 0.83 111.31 109.11

MSCI ACWI NR USD Idx 11.39 9.36 — — — — — 0.84 — —





Risk and Return


5 YrMean

5 YrAlpha

5 YrBeta5 Yr

R25 Yr


Treynor5 Yr

Sharpe Ratio5 Yr

UpsideCapture

5 Yr

DownsideCapture

5 Yr

Diversified Emerging Mkts(Fds) Avg 15.25 1.61 0.45 0.89 89.25 0.01 1.91 0.18 89.77 87.9716 Oppenheimer Developing Markets I MF 15.11 3.22 2.04 0.88 88.74 0.36 3.52 0.28 91.12 81.87

MSCI EM NR USD Idx 16.17 1.28 — — — — — 0.15 — —

Intermediate-Term Bond(Fds) Avg 2.97 2.61 0.52 0.93 84.37 0.12 2.77 0.85 101.18 89.0217 Vanguard Total Bond Market Index Adm MF 3.05 2.14 -0.19 1.05 99.34 -0.33 1.94 0.67 102.69 107.98

BBgBarc US Agg Bond TR USD Idx 2.91 2.23 — — — — — 0.73 — —

High Yield Bond(Fds) Avg 5.28 6.17 -0.48 0.91 90.91 -0.81 6.97 1.19 88.76 95.2818 JPMorgan High Yield R6 MF 5.19 6.60 -0.27 0.94 98.60 -1.07 6.93 1.24 92.25 95.58

BofAML US HY Master II TR USD Idx 5.51 7.35 — — — — — 1.30 — —

Allocation--50% to 70% Equity(Fds) Avg 7.20 8.04 0.50 1.01 90.58 0.24 7.91 1.11 103.42 98.6019 Fidelity® Puritan® MF 7.54 10.14 2.19 1.05 87.83 1.02 9.57 1.31 111.35 84.1520 Great-West SecureFoundation® Bal Instl MF 6.61 8.40 1.16 0.96 96.18 0.72 8.62 1.24 102.46 90.9521 Janus Balanced N MF 6.86 9.22 1.97 0.96 88.26 0.75 9.52 1.31 104.66 83.44

Morningstar Mod Tgt Risk TR USD Idx 6.74 7.45 — — — — — 1.09 — —

Target-Date 2015(Fds) Avg 5.97 6.53 -0.01 1.01 94.33 0.08 6.34 1.07 99.89 98.8322 American Funds 2015 Trgt Date Retire R6 MF 5.77 8.04 1.59 0.98 94.68 1.17 8.09 1.35 108.68 91.30

Morningstar Lifetime Mod 2015 TR USD Idx 5.74 6.48 — — — — — 1.11 — —

Target-Date 2020(Fds) Avg 6.17 6.48 -0.20 0.92 92.85 -0.39 6.92 1.03 90.69 92.7923 American Funds 2020 Trgt Date Retire R6 MF 6.53 8.95 1.67 0.98 95.51 1.20 8.99 1.33 107.21 89.67










Risk and Return


5 YrMean

5 YrAlpha

5 YrBeta5 Yr

R25 Yr


Treynor5 Yr

Sharpe Ratio5 Yr

UpsideCapture

5 Yr

DownsideCapture

5 Yr





Target-Date 2045(Fds) Avg 9.79 9.61 0.07 0.95 97.34 -0.24 9.99 0.98 94.11 92.4628 American Funds 2045 Trgt Date Retire R6 MF 9.31 11.51 2.24 0.90 97.10 0.79 12.63 1.21 97.41 81.02


Target-Date 2050(Fds) Avg 9.82 9.34 0.15 0.93 93.38 -0.19 9.98 0.95 92.49 90.9829 American Funds 2050 Trgt Date Retire R6 MF 9.35 11.52 2.38 0.90 96.99 0.83 12.71 1.21 97.46 80.29


Target-Date 2055(Fds) Avg 9.97 9.86 0.49 0.95 97.17 0.01 10.25 0.99 96.11 91.9130 American Funds 2055 Trgt Date Retire R6 MF 9.36 11.50 2.53 0.89 96.65 0.84 12.78 1.20 97.80 80.05


Target-Date 2060+(Fds) Avg — — — — — — — — — —American Funds 2060 Trgt Date Retire R6 MF — — — — — — — — — —Morningstar Lifetime Mod 2060 TR USD Idx 10.29 9.64 — — — — — 0.94 — —





Investment Costs

Net Expense Ratio Quartiles 12-31-2016

Quartile Rank

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

4th Quartile

3rd Quartile

2nd Quartile

1st Quartile

Number of Options

Expense/Return 12-31-2016

3 Yr Rel Return

-1.60

-1.20

-0.80

-0.40

0.00

0.40

0.80

1.20

1.60

-2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5

123

45

6

7

8

910

11

12

13

14

15

16

1718

19

2021

222324252627282930

Net Exp Rel to Cat Median* Data not available for 1 options/funds.



Page 20 of 40

Cost measures for mutual funds use Prospectus Net Expense Ratio. For VAs, total insurance expense is included in the Prospectus ratio. For CITs, CEs, and ETFs, Net Operating Expense Ratio is used.The Weighted Average Cost is the total of each security’s Expense Ratio, multiplied by the weight of each security’s assets in the plan, multiplied by 100.



Investment Costs

Investment Costs 12-31-2016Type Market

Value $% of

PortfolioGross Exp

Ratio %Net ExpRatio %

Net FundExp $

Net ExpRel to Cat Median

Current12b-1

WeightedAvg Cost

Net Exp %Rank in Cat

Large Value(Fds) Med — — 0.93 0.87 — — 0.25 — —1 Invesco Growth and Income R6 MF 7,241,372.49 3.03 0.38 0.38 27,517.22 -0.56 — 0.0115 19

Russell 1000 Value TR USD Idx — — — — — — — — —

Large Blend(Fds) Med — — 0.82 0.78 — — 0.25 — —2 American Funds Invmt Co of Amer R6 MF 5,979,304.00 2.51 0.30 0.30 17,937.91 -0.62 — 0.0075 213 TIAA-CREF Equity Index Instl MF 13,856,566.29 5.81 0.05 0.05 6,928.28 -0.94 — 0.0029 64 BlackRock Equity Index F CIT 8,348,305.90 3.50 0.00 0.00 0.00 -1.00 — 0.0000 1

Russell 1000 TR USD Idx — — — — — — — — —

Large Growth(Fds) Med — — 0.97 0.95 — — 0.25 — —5 American Funds Growth Fund of Amer R6 MF 21,610,404.80 9.06 0.33 0.33 71,314.34 -0.65 — 0.0299 146 Fidelity® Contrafund® MF 18,664,422.48 7.82 0.71 0.71 132,517.40 -0.25 — 0.0555 307 Pioneer Fundamental Growth K MF 3,039,353.51 1.27 0.67 0.67 20,363.67 -0.29 0.00 0.0085 28

Russell 1000 Growth TR USD Idx — — — — — — — — —

Mid-Cap Value(Fds) Med — — 1.02 0.96 — — 0.25 — —8 American Century Mid Cap Value R6 MF 30,753,635.17 12.89 0.66 0.63 1 193,747.90 -0.34 — 0.0812 18

Russell Mid Cap Value TR USD Idx — — — — — — — — —

Mid-Cap Growth(Fds) Med — — 1.02 1.00 — — 0.25 — —9 Artisan Mid Cap Institutional MF 8,902,921.02 3.73 0.95 0.95 84,577.75 -0.05 — 0.0354 3210 Baron Growth Instl MF 4,509,926.42 1.89 1.04 1.04 46,903.23 0.04 0.00 0.0197 37

Russell Mid Cap Growth TR USD Idx — — — — — — — — —

Small Value(Fds) Med — — 1.14 1.08 — — 0.25 — —11 Columbia Small Cap Value Fund II Y MF 4,389,151.64 1.84 0.84 0.84 36,868.87 -0.22 0.00 0.0155 26

Russell 2000 Value TR USD Idx — — — — — — — — —



Page 21 of 40




Investment Costs


Value $% of

PortfolioGross Exp


Net FundExp $


Current12b-1

WeightedAvg Cost


Small Growth(Fds) Med — — 1.17 1.12 — — 0.25 — —12 Franklin Small Cap Growth R6 MF 2,803,620.51 1.18 0.64 0.62 2 17,382.45 -0.45 — 0.0073 16

Russell 2000 Growth TR USD Idx — — — — — — — — —

Foreign Large Blend(Fds) Med — — 1.01 0.94 — — 0.25 — —13 Dreyfus International Stock Index Inv MF 10,746,892.88 4.50 0.61 0.60 3 64,481.36 -0.36 — 0.0270 29

MSCI ACWI Ex USA NR USD Idx — — — — — — — — —

Foreign Large Growth(Fds) Med — — 1.14 1.14 — — 0.25 — —14 Artisan International Institutional MF 3,508,746.57 1.47 0.95 0.95 33,333.09 -0.17 — 0.0140 36

MSCI ACWI Ex USA Growth NR USD Idx — — — — — — — — —

World Stock(Fds) Med — — 1.15 1.08 — — 0.25 — —15 Oppenheimer Global I MF 7,854,828.03 3.29 0.71 0.71 55,769.28 -0.34 — 0.0234 24

MSCI ACWI NR USD Idx — — — — — — — — —

Diversified Emerging Mkts(Fds) Med — — 1.37 1.30 — — 0.25 — —16 Oppenheimer Developing Markets I MF 8,263,727.34 3.46 0.88 0.88 72,720.80 -0.32 — 0.0305 29

MSCI EM NR USD Idx — — — — — — — — —

Intermediate-Term Bond(Fds) Med — — 0.66 0.60 — — 0.25 — —17 Vanguard Total Bond Market Index Adm MF 12,502,304.79 5.24 0.06 0.06 7,501.38 -0.90 — 0.0031 5

BBgBarc US Agg Bond TR USD Idx — — — — — — — — —

High Yield Bond(Fds) Med — — 0.91 0.84 — — 0.25 — —18 JPMorgan High Yield R6 MF 3,773,408.44 1.58 0.72 0.60 4 22,640.45 -0.29 — 0.0095 19

BofAML US HY Master II TR USD Idx — — — — — — — — —



Page 22 of 40




Investment Costs


Value $% of

PortfolioGross Exp


Net FundExp $


Current12b-1

WeightedAvg Cost


Allocation--50% to 70% Equity(Fds) Med — — 0.91 0.89 — — 0.25 — —19 Fidelity® Puritan® MF 4,096,793.20 1.72 0.56 0.56 22,942.04 -0.37 — 0.0096 2220 Great-West SecureFoundation® Bal Instl MF 531,905.47 0.22 0.31 0.28 5 1,489.34 -0.69 0.00 0.0006 921 Janus Balanced N MF 2,413,263.96 1.01 0.58 0.58 13,996.93 -0.35 — 0.0059 22

Morningstar Mod Tgt Risk TR USD Idx — — — — — — — — —

Target-Date 2015(Fds) Med — — 0.76 0.58 — — 0.25 — —22 American Funds 2015 Trgt Date Retire R6 MF 3,930,081.88 1.65 0.35 0.35 13,755.29 -0.40 — 0.0058 19

Morningstar Lifetime Mod 2015 TR USD Idx — — — — — — — — —













Page 23 of 40




Investment Costs


Value $% of

PortfolioGross Exp


Net FundExp $


Current12b-1

WeightedAvg Cost






Target-Date 2055(Fds) Med — — 0.89 0.71 — — 0.25 — —30 American Funds 2055 Trgt Date Retire R6 MF 930,913.43 0.39 0.45 0.45 4,189.11 -0.37 — 0.0018 28


Target-Date 2060+(Fds) Med — — 1.22 0.67 — — 0.25 — —American Funds 2060 Trgt Date Retire R6 MF 88,520.44 0.04 0.60 0.46 6 407.19 -0.31 — 0.0002 27Morningstar Lifetime Mod 2060 TR USD Idx — — — — — — — — —

Total — 238,597,846.93 100.00 — — 1,175,092.73 — — 0.4900 —

1. Contractual waiver; 07-31-2017.

2. Contractual waiver that may expire at any time

3. Contractual waiver that may expire at any time






Page 24 of 40



The Defined Contribution Plan Status Report is supplemental salesliterature, and therefore must be preceded or accompanied by the fund’scurrent prospectus or an equivalent statement. Please read thisinformation carefully. In all cases, this disclosure statement shouldaccompany the Defined Contribution Plan Status Report. Morningstar isnot itself a FINRA-member firm. All data presented is based on the mostrecent information available to Morningstar as of the release date andmay or may not be an accurate reflection of current data for securitiesincluded in the fund’s portfolio. There is no assurance that the data willremain the same.

The information and data in the presentation may be deemed reliable;however, their accuracy and completeness is not guaranteed by UBSFinancial Services Inc and providing you with this information is not tobe considered a solicitation on our part with respect to the purchase orsale of any securities, investments, strategies or products that may bementioned. In addition, the information and data used are subject tochange without notice.

Morningstar and its employees are not affiliated with UBS FinancialServices Inc. or its affiliates.

Unless otherwise specified, the definition of “funds” used throughoutthis Disclosure Statement includes closed-end funds, exchange-tradedfunds, grantor trusts, index mutual funds, open-ended mutual funds, andunit investment trusts. It does not include exchange-traded notes orexchange-traded commodities.

Prior to 2016, Morningstar’s methodology evaluated open-end mutualfunds and exchange-traded funds as separate groups. Each groupcontained a subset of the current investments included in our currentcomparative analysis. In this report, historical data presented on acalendar-year basis and trailing periods ending at the most-recentmonth-end reflect the updated methodology. Following this change, weexpect some movement in the UBS Fund Score. For example, somemutual funds could score a little worse than ETFs after the categorymerge. Alerts that were set using UBS MF (or US ETF) category

returns/ranking could be triggered.

Risk measures (such as alpha, beta, r-squared, standard deviation,mean, or Sharpe ratio) are calculated for securities or portfolios thathave at least a three-year history.

Most Morningstar rankings do not include any adjustment for one-timesales charges, or loads. Morningstar does publish load-adjusted returns,and ranks such returns within a Morningstar Category in certain reports.The total returns for ETFs and fund share classes without one-time loadsare equal to Morningstar’s calculation of load-adjusted returns. Shareclasses that are subject to one-time loads relating to advice or salescommissions have their returns adjusted as part of the load-adjustedreturn calculation to reflect those loads.

Comparison of Fund TypesFunds, including closed-end funds, exchange-traded funds (ETFs), moneymarket funds, open-end funds, and unit investment trusts (UITs), havemany similarities, but also many important differences. In general,publically-offered funds are investment companies registered with theSecurities and Exchange Commission under the Investment Company Actof 1940, as amended. Funds pool money from their investors andmanage it according to an investment strategy or objective, which canvary greatly from fund to fund. Funds have the ability to offerdiversification and professional management, but also involve risk,including the loss of principal.

A closed-end fund is an investment company, which typically makes onepublic offering of a fixed number of shares. Thereafter, shares are tradedon a secondary market. As a result, the secondary market price may behigher or lower than the closed-end fund's net asset value (NAV). Ifthese shares trade at a price above their NAV, they are said to betrading at a premium. Conversely, if they are trading at a price belowtheir NAV, they are said to be trading at a discount. A closed-end mutualfund’s expense ratio is an annual fee charged to a shareholder. Itincludes operating expenses and management fees, but does not takeinto account any brokerage costs. Closed-end funds may also have 12b-1fees. Income distributions and capital gains of the closed-end fund aresubject to income tax, if held in a taxable account.

An ETF is an investment company that typically has an investmentobjective of striving to achieve a similar return as a particular marketindex. The ETF will invest in either all or a representative sample of thesecurities included in the index it is seeking to imitate. Like closed-endfunds, an ETF can be traded on a secondary market and thus have amarket price that may be higher or lower than its net asset value. Ifthese shares trade at a price above their NAV, they are said to betrading at a premium. Conversely, if they are trading at a price belowtheir NAV, they are said to be trading at a discount. ETFs are not activelymanaged, so their value may be affected by a general decline in the U.S.market segments relating to their underlying indexes. Similarly, animperfect match between an ETF’s holdings and those of its underlyingindex may cause its performance to vary from that of its underlyingindex. The expense ratio of an ETF is an annual fee charged to ashareholder. It includes operating expenses and management fees, butdoes not take into account any brokerage costs. ETFs do not have 12b-1fees or sales loads. Capital gains from funds held in a taxable accountare subject to income tax. In many, but not all cases, ETFs are generallyconsidered to be more tax-efficient when compared to similarly investedmutual funds.

Holding company depository receipts (HOLDRs) are similar to ETFs, butthey focus on narrow industry groups. HOLDRs initially own 20 stocks,which are unmanaged, and can become more concentrated due tomergers, or the disparate performance of their holdings. HOLDRs canonly be bought in 100-share increments. Investors may exchange sharesof a HOLDR for its underlying stocks at any time.

A money-market fund is an investment company that invests incommercial paper, banker's acceptances, repurchase agreements,government securities, certificates of deposit and other highly liquidsecurities, and pays money market rates of interest. Money markets arenot FDIC-insured, may lose money, and are not guaranteed by a bank orother financial institution. Although the money market seeks topreserve a stable per share value (i.e. $1.00 per share), it ispossible to lose money by investment in the fund.

An open-end fund is an investment company that issues shares on acontinuous basis. Shares can be purchased from the open-end mutual

Release date 12-31-2016 | UBS DC Report.



Gwinnett County Retirement PlansDisclosure

fund itself, or through an intermediary, but cannot be traded on asecondary market, such as the New York Stock Exchange. Investors paythe open-end mutual fund’s current net asset value plus any initial salesloads. Net asset value is calculated daily, at the close of business.Open-end mutual fund shares can be redeemed, or sold back to the fundor intermediary, at their current net asset value minus any deferred salesloads or redemption fees. The expense ratio for an open-end mutualfund is an annual fee charged to a shareholder. It includes operatingexpenses and management fees, but does not take into account anybrokerage costs. Open-end funds may also have 12b-1 fees. Incomedistributions and capital gains of the open-end fund are subject toincome tax, if held in a taxable account.

Mutual Fund Performance InformationAdditional information regarding each fund analyzed is presented in theFact Sheets included with this analysis. Note that the informationcontained in this analysis was obtained from a variety of sources andUBS has not verified the accuracy of this information.

Mutual Funds are sold by prospectus and you should carefullyconsider important information on the fund's investmentobjectives, risk, charges and expenses. Please read theprospectus and offering documents carefully before you invest.Your Financial Advisor can provide a copy of the prospectus. Forcurrent month-end returns:http://advisor.morningstar.com/familyinfo.asp.

A unit investment trust (UIT) is an investment company organized undera trust agreement between a sponsor and trustee. UITs typicallypurchase a fixed portfolio of securities and then sell units in the trust toinvestors. The major difference between a UIT and a mutual fund is thata mutual fund is actively managed, while a UIT is not. On a periodicbasis, UITs usually distribute to the unit holder their pro rata share of thetrust's net investment income and net realized capital gains, if any. If thetrust is one that invests only in tax-free securities, then the income fromthe trust is also tax-free. UITs generally make one public offering of afixed number of units. However, in some cases, the sponsor willmaintain a secondary market that allows existing unit holders to selltheir units and for new investors to buy units. A one-time initial sales

charge is deducted from an investment made into the trust. UIT investorsmay also pay creation and development fees, organization costs, and/ortrustee and operation expenses. UIT units may be redeemed by thesponsor at their net asset value minus a deferred sales charge, and soldto other investors. UITs have set termination dates, at which point theunderlying securities are sold and the sales proceeds are paid to theinvestor. Typically, a UIT investment is rolled over into successive trustsas part of a long-term strategy. A rollover fee may be charged for theexercise of rollover purchases. There are tax consequences associatedwith rolling over an investment from one trust to the next.

Comparison of Other Security TypesA bond is a debt security. When an investor purchases a bond, thepurchase amount is lent to a government, municipality, corporation orother entity known as an issuer. The issuer promises to pay a specifiedrate of interest during the life of the bond and repay the face value ofthe bond when it matures. U.S Treasuries can be purchased directly fromthe Treasury or through a brokerage firm. Most other newly issuedbonds are offered through an underwriter. Older bonds are tradedthroughout the day on the secondary market and can be purchasedthrough a brokerage firm, who will charge transaction fees andcommission for the purchase or sale. Price evaluations are provided byInteractive Data Corporation (IDC).

A commingled pool or collective investment trust (CIT) is a productwhere assets from several accounts are pooled and managed together.This strategy reduces management and administrative costs. Typically acollection of participants with the same strategy is pooled together.

Insurance group separate accounts (IGSA) are unregistered groupannuities, primarily used in 401(k) qualified, but also 403(b) and 457retirement plans. They are segregated (usually pooled) investmentportfolios, separate from the general investment portfolios establishedby life insurance companies. These products are regulated by stateinsurance boards, but not the SEC.

A separate account is a professionally managed portfolio of individualsecurities. Generally, it is an investment consulting relationship inwhich a client’s money is placed with one or more money managers, and

all administrative and management fees, along with commissions, arewrapped into one comprehensive fee, often paid quarterly.

A stock is an ownership interest in a company. When an investorpurchases a stock, they become a business owner, and the value of theirownership stake will rise and fall according to the underlying business.Stockholders are entitled to the profits, if any, generated by thecompany after everyone else – employees, vendors, lenders – get paid.Companies usually pay out their profits to investors in the form ofdividends, or they reinvest the money back into the business. Stockstrade on exchanges throughout the day, through a brokerage firm whowill charge a commission for the purchase or sale of shares. Incomedistributions and capital gains of the stock are subject to income taxupon their sale, if held in a taxable account.

Variable annuities are tax-deferred investments structured to convert asum of money into a series of payments over time. Variable annuitypolicies have limitations and are not viewed as short-term liquidinvestments. An insurance company's fulfillment of a commitment to paya minimum death benefit, a schedule of payments, a fixed investmentaccount guaranteed by the insurance company, or another form ofguarantee depends on the claims-paying ability of the issuing insurancecompany. Any such guarantee does not affect or apply to the investmentreturn or principal value of the separate account and its subaccount. Thefinancial ratings quoted for an insurance company do not apply to theseparate account and its subaccount. The insurance company offering avariable life contract will charge several fees to investors, includingannual contract charges that compensate the insurance company for thecost of maintaining and administering the variable life contract,mortality and expense risk (M&E Risk) charges based on a percentage ofa subaccount’s assets to cover costs associated with mortality andexpense risk, and administration fees that are based on a percentage ofa subaccount’s assets to cover the costs involved in offering andadministering the subaccount. A variable life investor will also becharged a front-end load by the insurance company on their initialcontribution, ongoing fees related to the management of the fund, andsurrender charges if the investor makes a withdrawal prior to a specifiedtime. If the variable annuity subaccount is invested in a money-marketfund, the money market fund is not FDIC-insured, may lose money, and is





not guaranteed by a bank or other financial institution.

PerformanceThe performance data given represents past performance and should notbe considered indicative of future results. Principal value and investmentreturn will fluctuate, so that an investor's shares, when sold, may beworth more or less than the original investment. Fund portfolio statisticschange over time. Funds are not FDIC-insured, may lose value, and arenot guaranteed by a bank or other financial institution.

Morningstar calculates after-tax returns using the highest applicablefederal marginal income tax rate plus the Medicare surcharge. As of2016, this rate is 39.6% plus 0.9% Medicare surcharge, or 40.5%, thishas been unchanged since 2013. This rate changes periodically inaccordance with changes in federal law.

Pre-Inception ReturnsThe analysis in this report may be based, in part, on adjusted historicalreturns for periods prior to the inception of the share class of the fundshown in this report (“Report Share Class”). If pre-inception returns areshown, a performance stream consisting of the Report Share Class andolder share class(es) is created. Morningstar adjusts pre-inceptionreturns downward to reflect higher expenses in the Report Share Class,we do not hypothetically adjust returns upwards for lower expenses. Formore information regarding calculation of pre-inception returns pleasesee the Morningstar Extended Performance Methodology.

When pre-inception data is presented in the report, the header atthe top of the report will indicate this. In addition, the pre-inception data included in the report will appear in italics.

While the inclusion of pre-inception data provides valuable insight intothe probable long-term behavior of newer share classes of a fund,investors should be aware that an adjusted historical return can onlyprovide an approximation of that behavior. For example, the feestructures of a retail share class will vary from that of an institutionalshare class, as retail shares tend to have higher operating expenses andsales charges. These adjusted historical returns are not actual returns.The underlying investments in the share classes used to calculate the

pre-performance string will likely vary from the underlying investmentsheld in the fund after inception. Calculation methodologies utilized byMorningstar may differ from those applied by other entities, includingthe fund itself.

The information contained in this report is from the most recentinformation available to Morningstar as of the release date, and may ormay not be an accurate reflection of the current composition of thesecurities included in the plan. There is no assurance that theweightings, composition and ratios will remain the same.

Benchmark ReturnsBenchmark performance is based on market total returns for marketindices and NAV total returns for category averages. NAV total returnreflects performance without adjusting for sales charges or the effectsof taxation, but is adjusted to reflect all actual ongoing securityexpenses (management, administrative, 12b-1 fees and other coststaken out of fund assets), and assumes reinvestment of dividends andcapital gains. A fund’s portfolio may differ significantly from thesecurities in the benchmark.

Returns for custom benchmarks are calculated by applying user-suppliedweightings to each benchmark’s returns every month. Trailing returnsare calculated by geometrically linking these weighted-average monthlyreturns. Custom benchmark returns thus assume monthly rebalancing.

12b1 Expense %Current 12b-1 is the maximum annual charge deducted from fund assetsto pay for distribution and marketing costs. This information is takendirectly from the fund’s prospectus.

ALERTSThe Alerts displayed in this report are being provided to assistretirement plan fiduciaries in evaluating the investment options offeredunder a defined contribution retirement plan. A number of differentfactors should be considered when choosing to add, remove or maintaina retirement plan investment options.

General

The Alerts section identifies alerts that you and your financial advisorset to help identify changes and/or potential problems in securities. TheAlerts section is intended to be for client reporting purposes onimplemented strategies or for advisor use only. It is not intended for useas supplemental sales literature. Morningstar is not itself a FINRAmember firm.

The content of this section is driven by measurement criteria that wereselected by you and your advisor.

Alerts may be set on performance, risk, ratings, composition, and othercharacteristics. Alerts may be set on an absolute basis, where ameasure is compared against a set value, or on a relative basis, where asecurity value is compared with the value of a benchmark or category.

Triggering of alerts is based on comparisons of data points that areavailable to Morningstar, Inc., applying mechanical checkingmechanisms. Although best efforts are made by Morningstar, Inc. tomaintain accurate and complete data and functional mechanicalprocesses, there are no guarantees with regard to either.

You and your financial advisor determined the criteria for setting alerts.There is no guarantee that the alerts set are appropriate. Setting alertsdoes not provide or guarantee protection against losses, market risk, orany other factors impacting securities. The presence of triggered alertsdoes not necessarily indicate weaknesses or problems with thesecurities, and is not necessarily a cause for action or changes in theimplemented securities. The absence of triggered alerts also does notnecessarily indicate security strength. Alerts are checked on a schedule(daily, weekly, monthly) selected by the advisor. The checking scheduleset may be insufficient to trigger a current alert even if an alert criterionis met currently.

Any performance data given in the report represents past performanceand should not be considered indicative of future results. Principal valueand investment return will fluctuate, so that an investor's shares, whenredeemed, may be worth more or less than the original investment.Most securities covered in this report are not FDIC-insured, may losevalue and are not guaranteed by a bank or other financial institution.





Alert TerminologySecurity Alert: An alert rule that is based on characteristics of a singlesecurity, e.g. a mutual fund. Note that it is possible to set one alert ruleto multiple securities at a time.

Status: The status of an alert will be either “triggered” or “nottriggered.” A status of “triggered” means that the criteria set in the alertis currently met. A status of “not triggered” means that conditions set inthe alert were not met when last checked.

Initial Trigger Date: This represents the first date on which the alert waschecked and for which alert conditions were met. Note that it is possiblethat conditions for triggering the alert were met prior to the first check.

Initial Trigger Value: This represents the measure that caused an alert’sconditions to first be met. For example, if an alert is set to trigger whenone-year trailing return is less than 2%, and one year trailing return is1.9% when checked, 1.9 will appear as the trigger value.

Current Trigger Value: This represents the measure that causes analert’s conditions to continue to be met when most recently checked.

Current Comparison Value: This represents the value that is beingcompared to determine if the alert is triggered. For example, if an alert isset to trigger when one-year trailing return is less than 2.0%, a value of2 will appear as the Comparison Value. If the alert is set to trigger whenone-year trailing performance for a security is less than one-yearperformance for a benchmark, the comparison value will showtheperformance of the benchmark.

Current Comparison Subject: This represents the entity against whichthe security or aggregate is compared. For example, if an alert is set totrigger if one-year return is less than the return of a benchmark, thebenchmark name will be shown as the comparison subject.

Security Name: When a security alert is triggered, the name of anyimpacted security will be listed.

Frequency: Alerts may be set on monthly, weekly, and daily frequencies.

Monthly alerts compare data based on the last business day of themonth and continue monthly. Weekly alerts compare data based on thelast business day of the week and continue weekly. Daily alerts comparedata based on the previous business day and continue daily.

AlphaAlpha is a measure of the difference between a security or portfolio’sactual returns and its expected performance, given its level of risk (asmeasured by beta.) Alpha is often seen as a measure of the value addedor subtracted by a portfolio manager.

Asset AllocationAsset Allocation reflects asset class weightings of the portfolio. The“Other” category includes security types that are not neatly classified inthe other asset classes, such as convertible bonds and preferred stocks,or cannot be classified by Morningstar as a result of missing data.Morningstar may display asset allocation data in several ways, includingtables or pie charts. In addition, Morningstar may compare the assetclass breakdown of the fund against its three-year average, categoryaverage, and/or index proxy.

Asset allocations shown in tables may include a breakdown among thelong, short, and net (long positions net of short) positions. Thesestatistics summarize what the fund’s managers are buying and how theyare positioning the fund’s portfolio. When short positions are capturedin these portfolio statistics, investors get a more robust description ofthe fund’s exposure and risk. Long positions involve buying the securityoutright and selling it later, with the hope the security’s price rises overtime. Short positions are taken with the hope of benefitting fromanticipated price declines. The investor borrows the security fromanother investor, sells it and receives cash, and then is obligated to buyit back at some point in the future. If the price falls after the short sale,the investor will have sold high and can buy low to close the shortposition and lock in a profit. However, if the price of the securityincreases after the short sale, the investor will experience a loss buyingit at a higher price than the sale price.

Most fund portfolios hold fairly conventional securities, such as long

positions in equities and bonds. Morningstar may generate a colored piechart for these portfolios. Other portfolios use other investmentstrategies or securities, such as short positions or derivatives, in anattempt to reduce transaction costs, enhance returns, or reduce risk.Some of these securities and strategies behave like conventionalsecurities, while other have unique return and risk characteristics.Portfolios that incorporate investment strategies resulting in shortpositions or portfolio with relatively exotic derivative positions oftenreport data to Morningstar that does not meet the parameters of thecalculation underlying a pie chart’s generation. Because of the nature ofhow these securities are reported to Morningstar, we may not alwaysget complete portfolio information to report asset allocation.Morningstar, at its discretion, may determine if unidentifiedcharacteristics of fund holdings are material. Asset allocation and otherbreakdowns may be rescaled accordingly so that percentages total to100 percent. (Morningstar used discretion to determine if unidentifiedcharacteristics of fund holdings are material, pie charts and otherbreakdowns may rescale identified characteristics to 100% for moreintuitive presentation.)

Note that all other portfolio statistics presented in this report are basedon the long (or long rescaled) holdings of the fund only.

Average Effective DurationDuration is a time measure of a bond's interest-rate sensitivity. Averageeffective duration is a weighted average of the duration of the fixed-income securities within a portfolio.

Average Effective MaturityAverage Effective Maturity is a weighted average of the maturities of allbonds in a portfolio.

Best Fit IndexAlpha, beta, and R-squared statistics are presented for a broad marketindex and a “best fit” index. The Best Fit Index identified in this reportwas determined by Morningstar by calculating R-squared for the fundagainst approximately 100 indexes tracked by Morningstar. The indexrepresenting the highest R-squared is identified as the best fit index.The best fit index may not be the fund’s benchmark, nor does it





necessarily contain the types of securities that may be held by the fundor portfolio.

BetaBeta is a measure of a security or portfolio’s sensitivity to marketmovements (proxied using an index.) A beta of greater than 1 indicatesmore volatility than the market, and a beta of less than 1 indicates lessvolatility than the market.

Capture RatiosCapture Ratios compare the fund’s results to their peer group index inperiods of both positive and negative returns. The Downside CaptureRatio uses the annualized cumulative returns for both the fund and theS&P 500 for all the quarters when the S&P500 had negative returns.

Dividing the fund’s return during the down quarters by the S&P 500’sreturn during the same quarters provides the downside capture ratio.The Upside Capture Ratio uses the annualized cumulative returns forboth the fund and the S&P 500 for all quarters when the S&P 500 hadpositive returns. Dividing the fund’s return during the positive quartersby the S&P 500’s return during the same quarters provides the upsidecapture ratio.

Composition By FundThe pie chart displays the funds' exposure by their respective percentageallocation. The corresponding table provides the fund name, ticker, planpercentage, and amount ( $) of funds in the plan. If your plan has morethan 26 funds only the top 26 based on their percentage of plan assetswill be listed.

Concentration RatioThe concentration ratio depicts how much of the plan's aggregateinvestment options are within the top 10 stock holdings.

Correlation Matrix GraphThe Correlation Matrix is based on the correlation coefficient calculatedfor the monthly returns of each investment showing in the report againstthe other investments in the report. The correlation coefficient is anumber between -1.0 and 1.0.

If there is a perfect positive linear relationship between the returns ofinvestments, the correlation will be 1.0. A correlation close to 1.0 meansthat two investments perform similarly—when one investment isperforming above its average return, the other performs above itsaverage return. The opposite is also true—when one investmentperforms below its average return, the other also performs below itsaverage.

A correlation coefficient of 0.0 means that there is no linear relationshipbetween the returns of two investments. Securities with a correlationcoefficient at or near 0 indicate a pattern of returns between twosecurities that are unrelated.

If there is a perfect negative linear relationship between twoinvestments the correlation coefficient is -1.0. If there is a perfectlynegative relationship between two investments, when one investmentperforms above its average return, the other performs below its average,and vice versa.

Correlation between securities is a helpful measure because it indicatesthe extent to which securities may serve to improve diversificationwithin a portfolio. Portfolios containing securities with low correlation ofreturns produce portfolio risk that is lower than the average risk of theindividual securities. The lower the correlation between securities, thegreater the impact in lowering portfolio risk. Securities with correlationsequal to 1.0 indicate a pattern of returns that do not contribute tobeneficial diversification in a portfolio and do not lower overall portfoliorisk when the securities are combined in a portfolio. Securities withcorrelations equal to 0.0 or close to 0.0 indicate a pattern of returns thatserve to improve diversification effects in a portfolio. Securities withcorrelations equal to -1.0 or close to -1.0 indicate a pattern of returnsthat serve to strongly improve diversification effects in a portfolio,notably, lower overall portfolio risk. Note that it is very unusual to haveinvestments with extremely strong negative correlation patterns. Mostsecurities have a correlation above 0.

Note that return patterns between securities may change over time. Thecorrelation coefficient between two investments over one period maydiffer from that of another period.

Further, note that while combining securities with correlationcoefficients less than 1.0 in a portfolio can reduce risk, risk cannot becompletely eliminated with diversification. There is no guarantee thatany particular mix of securities will eliminate risk, reduce your currentexposure to risk, or manage your exposure to risk in a way that istolerable for you.

Deferred Load %The back-end sales charge or deferred load is imposed when an investorredeems shares of a fund. The percentage of the load charged generallydeclines the longer the fund’s shares are held by the investor. Thischarge, coupled with 12b-1 fees, commonly serves as an alternative to atraditional front-end load.

Expense Ratio %Prospectus Gross Expense Ratio is the maximum expense ratio which afund may charge as detailed in the prospectus. The purpose of this datapoint is to identify the maximum exposure an investor has to fundexpenses. The Prospectus Gross Expense Ratio may not equal the actualexpenses paid.

Prospectus Net Expense Ratio reflects actual expenses paid by the fundas well as any voluntary waivers, reductions from brokerage servicearrangements and any other expense offset arrangements.

Expense Ratio Quartile RankThe expense ratio quartile rank of a holding is calculated by dividing theexpense ratio of the holding by the expense ratio of its MorningstarCategory. The graph, ranging from Q1 (best/lowest) to Q4(worse/highest), displays the number of funds that fall into each of theresulting quartiles.

Expense/Return GraphCost measures for mutual funds use Prospectus Net Expense Ratio. ForVAs, total insurance expense is included in the Prospectus ratio. ForCITs, CEs, and ETFs, Net Operating Expense Ratio is used. Theexpense/return graph is used to capture each security’s return andexpense performance relative to its category peers. It’s important tounderstand the context in which returns and expenses are experienced.





For example, slightly higher than category median expenses may beacceptable if the option provides much higher than category averagereturns. The desirable quadrant of the expense/return graph is the upperleft, where options have demonstrated lower expenses and higherreturns than their category peers. The 3 Yr Relative Return measures thefund's 3 year performance relative to the median of its MorningstarCategory. The Median Relative Expense measures the security's NetExpense relative to the median of its Morningstar Category.

Front-end Load %The initial sales charge or front-end load is a deduction made from eachinvestment in the fund and is generally based on the amount of theinvestment.

IMPORTANT INFORMATION ON FUND SCORINGThe fund scores illustrated in this report are derived from a UBSproprietary process using a number of different standards and criteria tomeasure a fund’s overall performance, risk and history. UBS does notmake any representation regarding the effectiveness of this process, andmakes no guarantee regarding the funds earning strong scores from thisprocess. These scores are being provided to assist retirement planfiduciaries in evaluating the investment options offered under a definedcontribution retirement plan. These scores do not constitute fiduciaryadvice or judgment, and should not be used in place of the retirementplan fiduciaries’ prudent review of the investment options. The fundscores are only one element for consideration when evaluating theappropriateness of such investment options. This process does notfactor other considerations that affect future performance, such aswhether a manager’s investing style is recently out of favor. For thisreason, many investment options that receive low scores mayoutperform peers. A number of different factors should be consideredwhen choosing to add, remove or maintain a retirement plan investmentoption.

The Fund Scoring ProcessThe following is a description of the proprietary process we use to arriveat the fund score. The process is comprised of ten individual scoringmeasures (as further discussed below under "More Detail on IndividualScoring Measures") and one Overall Fund Score. The formula in each

individual category calculates a percentile ranking relative to the fundsin their respective Morningstar peer group. The percentile rank is thenassigned a numerical value as indicated the chart below.

Transforming Percentile Ranks to Fund ScoresWhen transforming a percentile rank into a fund score for any givenmeasure, or overall score, the following rules will be followed:91st percentile or greater - 5Between 71st and 90th Percentile - 4Between 31st and 70th percentile - 3Between 11th and 30th percentile - 2Less than 11th percentile - 1Note: A score of 5 represents the best possible score - and a 1represents the worst. If a security is missing any measure among the 10,no overall score will be calculated.

Overall ScoreThe Overall score is derived from the final percentage rankings for eachmeasure, weighting them at the percentages noted below:Criteria 1 - Information Ratio vs. Category Benchmark: 7.143%Criteria 2 - Information Ratio vs. Category Average: 7.143%Criteria 3 - Sharpe Ratio : 14.286%Criteria 4 - Batting Average vs. Category Benchmark: 7.143%Criteria 5 - Batting Average vs. Category Average: 7.143%Criteria 6 - Performance vs. Peers: 14.286%Criteria 7 - Capture Ratios vs. Category Benchmark: 7.143%Criteria 8 - Capture Ratios vs. Category Average: 7.143%Criteria 9 - Manager Tenure: 14.286%Criteria 10 - Expense Ratio: 14.286%

Rolling PeriodsAll metrics, with the exception of batting average, manager tenure, andexpense ratio, are for 36-month periods, rolled monthly. The first periodbegins 96 months before the most recent month-end and ends 60months before the most recent month end. For periods of less than 96months, the score will be calculated based on the data available,provided there is a minimum of 36 months.

For rolling period scores, each period’s score is calculated and then

transformed into a percentile. The percentiles for all periods areaveraged and then transformed into a final percentile used to assign thescores 1-5, as noted above.

More Detail on Individual Scoring Measures1.) Modified Information Ratio Versus Category Benchmark--Has thefund demonstrated value added over the category benchmark foravailable rolling three year rolling periods ending over the last fiveyears? [7.143% of the overall score]

This measure looks at excess returns over the category benchmark for allavailable rolling 36-month periods going back monthly, ending over thelast 5 years.

The Information Ratio is an investment's active premium (its annualizedgeometric return minus the benchmark's annualized geometric return)divided by its tracking error. This calculation of the information ratiouses excess returns over the benchmark for 36 months ending with themost recent month.

2.) Modified Information Ratio Versus Category Average--Has the funddemonstrated value added over the category average for availablerolling three year periods ending over the last five years? [7.143% of theoverall score]

This measure looks at excess returns over the category average foravailable rolling 36-month periods going back monthly, ending over thelast five years.

The Information Ratio is an investment's active premium (its annualizedgeometric return minus the benchmark's annualized geometric return)divided by its tracking error. This calculation of the information ratiouses excess returns over the category average for each 36-month periodevaluated.

3.) Modified Sharpe Ratio- Did the fund perform well against a relevantpeer universe for the rolling three year monthly periods ended over thelast five years in terms of Sharpe ratios? [14.286% of the overall score]





The Sharpe Ratio is calculated by using standard deviation and excessreturn to determine reward per unit of risk. The higher the Sharpe Ratio,the better the portfolio’s historical risk-adjusted performance. TheSharpe Ratios are calculated for all rolling periods available (e.g. all 36-month periods ending in the past five years). Each fund’s rolling periodSharpe ratios are averaged. Within each category, the average rollingSharpe ratios for included funds is ranked.

4.) Batting Average Versus Category Benchmark- Did the fund performwell versus its category benchmark over the most recent eight years?[7.143% of the overall score]

The batting average versus category benchmark is the average numberof times, expressed in percentage, that the fund’s returns beat thecategory benchmark over the past 96 months. (For periods of less than96 months, the score will be calculated based on the data available,provided there is a minimum of 36 months.) For example, if the fund hasa better record than the category benchmark in 66 out of the last 96months, the batting average for this period would be 0.6875 (66/96).

Using all monthly returns available over the last eight years (96 months),the fund’s batting average is calculated compared to the categorybenchmark. All batting averages are ranked within the category.

5.) Batting Average Versus Category Average- Did the fund perform wellversus its category average over the most recent eight years? [7.143% ofthe overall score]

The batting average versus category average is the average number oftimes the fund’s returns beat the category average over the past 96months. (For periods of less than 96 months, the score will be calculatedbased on the data available, provided there is a minimum of 36 months.)For example, if the fund has a better record than the category average in66 out of the last 96 months, the batting average for this period was0.6875 (66/96).

Using all monthly returns available over the last eight years (96 months),the fund’s batting average is calculated compared to the categorybenchmark. All batting averages are ranked within the category.

5.) Batting Average Versus Category Average- Did the fund perform wellversus its category average over the most recent eight years? [7.143% ofthe overall score]

The batting average versus category average is the average number oftimes the fund’s returns beat the category average over the past 96months. (For periods of less than 96 months, the score will be calculatedbased on the data available, provided there is a minimum of 36 months.)For example, if the fund has a better record than the category average in66 out of the last 96 months, the batting average for this period was0.6875 (66/96).

Using all monthly return data available over the last eight years (96months), the fund’s batting average is calculated compared to thecategory average. All batting averages are ranked within the category.

6.) Performance vs. Peers--Did the fund perform well against a relevantpeer universe for the available three year rolling periods ended over thelast five years? [14.286% of the overall score]

For the available 36-month rolling periods ending in the most recent 5years, the fund’s average return is calculated. All funds in the categoryare ranked, and the fund’s score is assigned based on its percentile rank.

7.) Capture Ratios Vs. Category Benchmark- Has the fund achieved anacceptable up-side to down-side performance capture ratio relative toits category benchmark? [7.143% of the overall score] This metricevaluates a fund’s capture ratios, which reflect the percentage of themarket’s performance that the fund participated in over time, includingup and down markets.

The upside capture ratio is the compound return of the portfolio for allperiods in which the benchmark was up, divided by the compound returnof the benchmark during the same periods.

The downside capture ratio is the compound return of the portfolio forall periods in which the benchmark was down, divided by the compoundreturn of the benchmark during the same periods.

Capture ratios are usually expressed as a percent, so if a portfolio'scompound return during positive markets was 21% and the benchmark'sreturn was 20%, the upside capture ratio would be 105 (21/20). A goodupside capture ratio is greater than 100 and a good downside captureratio is less than 100. Because it is difficult to devise a strategy that willoutperform in both up and down markets, an investment fund maychoose to focus on one side, e.g., create an aggressive or defensiveportfolio. This metric awards its best value to funds that perform well inboth up and down markets.

Capture ratios are calculated as follows: All rolling periods’ captureratios are averaged for the fund. The percentile rankings are calculatedfor each score (Upside and Downside). The score for each fund is thenapplied from the average of these two percentiles.

8.) Capture Ratios Vs Category Average- Has the fund achieved anacceptable up-side to down-side performance capture ratio relative toits category average? [7.143% of the overall score]

This metric evaluates a fund’s capture ratios, which reflect thepercentage of the market’s performance in which the fund participatedover time, including up and down markets.

The upside capture ratio is the compound return of the portfolio for allperiods in which the benchmark was up, divided by the compound returnof the benchmark during the same periods.

The downside capture ratio is the compound return of the portfolio forall periods in which the benchmark was down, divided by the compoundreturn of the benchmark during the same periods.

Capture ratios are usually expressed as a percent, so if a portfolio'scompound return during positive markets was 21% and the benchmark'sreturn was 20%, the upside capture ratio would be 105 (21/20). A goodupside capture ratio is greater than 100 and a good downside captureratio is less than 100. Because it is difficult to devise a strategy that willoutperform in both up and down markets, an investment fund maychoose to focus on one side, e.g., create an aggressive or defensiveportfolio. This metric awards its best value to funds that perform well in





both up and down markets.

All rolling periods' capture ratios are averaged for the fund. Thepercentile rankings for each score (Upside and Downside) are calculated.The score for each fund is then applied from the average of these twopercentiles.

9.) Manager Tenure—Percent rank of the average tenure of the portfoliomanagement among those funds in its peer group. It is assumed that alonger tenure is more desirable than a shorter tenure. [14.286% of theoverall score]

10.) Expense ratio relative to peer group- The percent rank of a fund’soperating expense among those funds in its peer group with the sameload structure. It is assumed that a lower expense ratio is moredesirable than a higher expense ratio. [14.286% of the overall score]

Note: Net prospectus expense ratios are used for open-end mutualfunds, operating expense ratios are used for closed-end funds,exchange-traded funds, and CITs, and prospectus net expense ratio plustotal insurance expense are used for variable annuity subaccounts.

Pre-Inception ReturnsMonthly returns for the security, category, category benchmark, and arisk-free rate proxy are required to perform most of the calculations.When actual return is lacking for a mutual fund or variable annuitysubaccount, pre-inception return will be applied. The US 3-monthTreasury bill return will be used for the risk-free rate.

For ETFs and closed-end funds, NAV return will be applied, rather thanmarket return, in all calculations.

NotesIn the Fund Scoring report, a “Note” column is included next to eachinvestment option (security) analyzed and will be populated as follows:

Null ValueA null value (dash) will be populated in the “note” column if the score iscalculated for a fund.

Value of "A"If a fund has less than 36 months of consecutive, recent monthly returnhistory, only Expense Ratio and Manager Tenure will be scored. Nooverall score will be generated and a value of “A” will be populated inthe Note column.

Value of "B"If a fund has at least 36 but less than 96 months of consecutive, recentmonthly return, the measurement values and scores will be calculated. Avalue of “B” will be populated in the Note column.

Value of "C"If a category average or category benchmark has less than the number ofincluded return available for the fund (i.e., any month’s return applied incalculating scores for the fund is unavailable for the category average orcategory benchmark), measurement values and scores will be calculatedfor the fund. A value of “C” will be populated in the Note column of thetable.

Value of "D"If a fund has less than $25MM in total assets, no scores will becalculated and a value of “D” will be populated in the Note column.

Geometric Average Market CapitalizationGeometric Average Market Capitalization is a measure of the size of thecompanies in which a portfolio invests.

Holding Portfolio DateThe Portfolio Date is the date that the fund's portfolio was last updated.When making comparisons among funds, it is an important date to keepin mind. Although Morningstar tries to ensure timely information,Morningstar does not always receive current information from fundcompanies. By law, funds need only report this information two timesduring the calendar year, and they have two months after the report dateto actually release the shareholder report and portfolio. Therefore, it ispossible that a fund's portfolio could be up to eight months old at thetime of publication.

Information Ratio

Information ratio is a risk-adjusted performance measure. It is similar instructure to the Sharpe Ratio as a ratio of excess return per unit of risk.In the Sharpe Ratio, excess return and risk are measured relative to arisk-free rate. In comparison, the Information Ratio measures excessreturn and risk relative to a specific benchmark index.

The numerator for the Information Ratio is the difference between theannualized returns of the fund and the annualized returns of thebenchmark. The denominator is the fund's annualized tracking error,which is the standard deviation of the fund's monthly excess returnsover the benchmark returns.

Information Ratio is especially helpful for evaluating active managers.Index funds will typically have an Information Ratio close to zero,because these funds achieve very little excess return over thebenchmark. In contrast, active managers deviate from the benchmark inan attempt to add value. The Information Ratio measures how much thefund outperformed the benchmark per unit of additional risk taken.

Investment Fees and ExpensesPlease note that all data in the Fees and Expenses section are enteredby your financial advisor. This section of the report itemizes costs at aplan level and investment level based on information entered by theadvisor.

Investment StrategyThe investment strategy displayed in this report summarizes the fund’splan of investing assets among various investments/securities. Theseplans take into consideration such factors as goals, what kinds ofcompanies they look for, what market cap range they invest in, wherethey are located and how much will they pay. Morningstar pulls thisinformation directly from the fund's prospectus.

Management Fees %The management fee includes the management and administrative feeslisted in the Management Fees section of a fund’s prospectus. Typically,these fees represent the costs shareholders paid for management andadministrative services over the fund’s prior fiscal year.





Maximum Redemption Fee %The Maximum Redemption Fee is the maximum amount a fund maycharge if redeemed in a specific time period after the fund’s purchase(for example, 30, 180, or 365 days).

MeanMean is the annualized geometric return for the period shown.

Morningstar Analyst Rating™The Morningstar Analyst Rating™ is not a credit or risk rating. It is asubjective evaluation performed by the manager research analysts ofMorningstar. Morningstar evaluates funds based on five key pillars,which are process, performance, people, parent, and price. Analysts usethis five pillar evaluation to determine how they believe funds are likelyto perform relative to a benchmark, or in the case of exchange-tradedfunds and index mutual funds, a relevant peer group, over the long termon a risk-adjusted basis. They consider quantitative and qualitativefactors in their research, and the weight of each pillar may vary. TheAnalyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. AMorningstar Analyst Rating of Gold, Silver, or Bronze reflects ananalyst’s conviction in a fund’s prospects for outperformance. AnalystRatings are continuously monitored and reevaluated at least every 14months. For more detailed information about Morningstar’s AnalystRating, including its methodology, please go tohttp://corporate1.morningstar.com/ AnalystRating/.

The Morningstar Analyst Rating should not be used as the sole basis inevaluating a fund. Morningstar Analyst Ratings involve unknown risksand uncertainties which may cause Morningstar’s expectations not tooccur or to differ significantly from what we expected.

Morningstar CategoryMorningstar Category is assigned by placing funds into peer groupsbased on their underlying holdings. The underlying securities in eachportfolio are the primary factor in our analysis as the investmentobjective and investment strategy stated in a fund’s prospectus may notbe sufficiently detailed for our proprietary classification methodology.Funds are placed in a category based on their portfolio statistics andcompositions over the past three years. Analysis of performance and

other indicative facts are also considered. If the fund is new and has noportfolio history, Morningstar estimates where it will fall before giving ita permanent category assignment. Categories may be changed based onrecent changes to the portfolio.

Morningstar Ownership ZoneThe Morningstar Ownership Zone provides a graphic representation ofthe size and investment style of long stocks in fund’s portfolio. TheOwnership Zone is derived by plotting each stock in the portfolio withinthe Morningstar Style BoxTM. The Ownership Zone is the shaded areathat represents 75% of the assets in the portfolio and indicates the levelof concentration in the holdings. The “centroid” in the middle of theOwnership Zone represents the weighted average of all the holdings.The Ownership Zone helps investors differentiate between portfoliosthat may otherwise look similar. Investors can also use the OwnershipZone to construct diversified portfolios and model how multiple fundscomplement one another in a portfolio.

Morningstar Pillar RatingsMorningstar Pillar Ratings are subjective evaluations of funds performedby manager research analysts of Morningstar. Morningstar evaluatesfunds based on five key pillars, which are process, performance, people,parent, and price. Morningstar’s analysts assign each pillar a rating ofPositive, Neutral, or Negative. Morningstar Pillar Scores are then usedto help determine the fund’s Morningstar Analyst Rating.

The Morningstar Pillar Rating should not be used as the sole basis inevaluating a fund. Morningstar Pillar Ratings involve unknown risks anduncertainties which may cause Morningstar’s expectations not to occuror to differ significantly from what we expected.

Morningstar RankMorningstar Rank is the total return percentile rank within eachMorningstar Category. The highest (or most favorable) percentile rank iszero and the lowest (or least favorable) percentile rank is 100. Historicalpercentile ranks are based on a snapshot of a fund at the time ofcalculation.

Morningstar Rating™

The Morningstar Rating™ for funds, or "star rating", is calculated formanaged products (including mutual funds, variable annuity and variablelife subaccounts, exchange-traded funds, closed-end funds, andseparate accounts) with at least a three-year history. Exchange-tradedfunds and open-ended mutual funds are considered a single populationfor comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managedproduct's monthly excess performance, placing more emphasis ondownward variations and rewarding consistent performance. The top10% of products in each product category receive 5 stars, the next22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5%receive 2 stars, and the bottom 10% receive 1 star. The OverallMorningstar Rating for a managed product is derived from a weightedaverage of the performance figures associated with its three-, five-, and10-year (if applicable) Morningstar Rating metrics. The weights are:100% three-year rating for 36-59 months of total returns, 60% five-yearrating/40% three-year rating for 60-119 months of total returns, and50% 10-year rating/30% five-year rating/20% three-year rating for 120or more months of total returns. While the 10-year overall star ratingformula seems to give the most weight to the 10-year period, the mostrecent three-year period actually has the greatest impact because it isincluded in all three rating periods.

The subaccounts of unregistered variable annuities, as well as those ofregistered group variable annuities that are solely available for use inqualified plans, are rated based on their position within the bell curve ofthe open-end/ETF fund peer group (a.k.a. category), rather than thevariable annuity subaccount peer group. These ratings are calculated byusing an overlay of the open-end/ETF fund peer group break points andtherefore do not contribute to the category average or number of fundswithin the subaccount peer group.

The Morningstar Rating for separate accounts is based on the samemethodology that Morningstar uses to rate other investments, such asopen- end mutual funds, closed-end mutual funds, and variable annuitysubaccounts. There are some differences between the separate accountrating methodology and the rating methodologies for other investmentsbecause of the unique way that separate account managers calculateand report investment performance. All separate account performance





data is reported to Morningstar as a “composite” of similarly managedportfolios. Morningstar rates separate accounts based on total returnsthat have not been adjusted for investment management fees.Morningstar does not tax-adjust the returns of separate accounts thatinvest in municipal bonds. The Morningstar Rating for separate accountsis based on quarter-end performance data. It will be recalculatedquarterly, because many managers do not provide monthly returns untilthe end of each quarter.

Please note that some Morningstar proprietary calculations, includingthe Morningstar Rating, may be calculated based on adjusted historicalreturns (pre- inception returns). If the extended performance rating is ineffect, the “stars” are represented as unshaded stars.

Morningstar ReturnThe Morningstar Return rates a fund’s performance relative to othermanaged products in its Morningstar Category. It is an assessment of aproduct's excess return over a risk-free rate (the return of the 90-dayTreasury Bill) in comparison with the products in its Morningstarcategory. In each Morningstar category, the top 10% of products earn aHigh Morningstar Return (High), the next 22.5% Above Average (+Avg),the middle 35% Average (Avg), the next 22.5% Below Average (-Ave),and the bottom 10% Low (Low). Morningstar Return is measured for upto three time periods (three, five, and 10 years). These separatemeasures are then weighted and averaged to produce an overallmeasure for the product. Products with less than three years ofperformance history are not rated.

Morningstar RiskMorningstar Risk evaluates a fund’s downside volatility relative to thatof other products in its Morningstar Category. It is an assessment of thevariations in monthly returns, with an emphasis on downside variations,in comparison with the products in its Morningstar category. In eachMorningstar category, the 10% of products with the lowest measuredrisk are described as Low Risk (Low), the next 22.5% Below Average (-Avg), the middle 35% Average (Avg), the next 22.5% Above Average(+Avg), and the top 10% High (High). Morningstar Risk is measured forup to three time periods (three, five, and 10 years). These separatemeasures are then weighted and averaged to produce an overall

measure for the product. Products with less than three years ofperformance history are not rated.

Morningstar Style Box™The Morningstar Style Box™ reveals a fund’s investment strategy as ofthe date noted on this report.

For equity funds, the vertical axis shows the market capitalization of thelong stocks owned, and the horizontal axis shows the investment style(value, blend, or growth.) A darkened square in the style box indicatesthe weighted average style of the portfolio.

For fixed-income funds, the vertical axis shows the credit quality of thelong bonds owned and the horizontal axis shows interest-rate sensitivityas measured by a bond's effective duration. Morningstar seeks creditrating information from fund companies on a periodic basis (for example,quarterly). In compiling credit rating information, Morningstar acceptscredit ratings reported by fund companies that have been issued by allNationally Recognized Statistical Rating Organizations. For a list of allNRSROs, please visit http://www.sec.gov/divisions/marketreg/ratingagency.htm. Additionally, Morningstar accepts foreign creditratings from widely recognized or registered rating agencies. If tworating organizations/ agencies have rated a security, fund companies areto report the lower rating; if three or more organizations/agencies haverated a security, fund companies are to report the median rating; and incases where there are more than two organization/agency ratings and amedian rating does not exist, fund companies are to use the lower of thetwo middle ratings.

Please Note: Morningstar, Inc. is not an NRSRO nor does it issue a creditrating on the fund. NRSRO or rating agency ratings can change fromtime to time.

For credit quality, Morningstar combines the credit rating informationprovided by the fund companies with an average default rate calculationto come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds tothe scale used by a leading NRSRO. Bond funds are assigned a style boxplacement of “low,” “medium,” or “high” based on their average credit

quality. Funds with a "low" credit quality are those whose weighted-average credit quality is determined to be less than “BBB-“; "medium"are those less than “AA-“, but greater or equal to “BBB-“; and "high"are those with a weighted-average credit quality of “AA-“ or higher.When classifying a bond portfolio, Morningstar first maps the NRSROcredit ratings of the underlying holdings to their respective default rates(as determined by Morningstar’s analysis of actual historical defaultrates). Morningstar then averages these default rates to determine theaverage default rate for the entire bond fund. Finally, Morningstar mapsthis average default rate to its corresponding credit rating along aconvex curve.

For interest-rate sensitivity, Morningstar obtains from fund companiesthe average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration ofthe Morningstar Core Bond Index, which is currently three years. Theclassification of Limited will be assigned to those funds whose averageeffective duration is between 25% to 75% of MCBI's average effectiveduration; funds whose average effective duration is between 75% to125% of the MCBI will be classified as Moderate; and those that are at125% or greater of the average effective duration of the MCBI will beclassified as Extensive.

For municipal-bond funds, Morningstar also obtains from fundcompanies the average effective duration. In these cases, staticbreakpoints are used. These breakpoints are as follows: (i) Limited: 4.5years or less; (ii) Moderate: more than 4.5 years but less than 7 years;and (iii) Extensive: more than 7 years. In addition, for non-U.S. taxableand non-U.S. domiciled fixed-income funds, static duration breakpointsare used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: morethan 3.5 years but less than or equal to 6 years; (iii) Extensive: more than6 years.

Interest-rate sensitivity for non-U.S. domiciled funds (excluding funds inconvertible categories) may be measured with modified duration wheneffective duration is not available.

Net Expense Relative to Category MedianThis ratio shows how an individual fund compares to the median of all





funds within its Morningstar Category. The category median is alwaysset to equal 0.0. For example, a Large Blend fund with a RelativeExpense Ratio weighting of 0.5 has 50% more expense than its medianpeer. The Net Expense Relative to Category Median is calculated bydividing the fund’s Expense Ratio by the Category Net Expense Ratiomedian, then subtracting 1.

P/B Ratio TTMThe Price/Book Ratio (or P/B Ratio) for a fund is the weighted average ofthe P/B Ratio of the stocks in its portfolio. Book value is the total assetsof a company, less total liabilities. The P/B ratio of a company iscalculated by dividing the market price of its outstanding stock by thecompany's book value, and then adjusting for the number of sharesoutstanding. Stocks with negative book values are excluded from thiscalculation. It shows approximately how much an investor is paying for acompany’s assets based on historical valuations.

P/C Ratio TTMThe Price/Cash Flow Ratio (or P/C Ratio) for a fund is the weightedaverage of the P/C Ratio of the stocks in its portfolio. The P/C Ratio of astock represents the amount an investor is willing to pay for a dollargenerated from a company’s operations. It shows the ability of acompany to generate cash and acts as a gauge of liquidity and solvency.

P/E Ratio TTMThe Price/Earnings Ratio (or P/E Ratio) for a fund is the weightedaverage of the P/E Ratios of the stocks in its portfolio. The P/E Ratio of astock is the stock’s current price divided by the company’s trailing 12-month earnings per share. A high P/E Ratio usually indicates the marketwill pay more to obtain the company’s earnings because it believes inthe company’s abilities to increase their earnings. A low P/E Ratioindicates the market has less confidence that the company’s earningswill increase, however value investors may believe such stocks have anoverlooked or undervalued potential for appreciation.

Percentage of InvestmentsThe Percentage of Investments column indicates the percentage of netassets that any given security (either as an individual holding or as anunderlying stock makes up as an overall position of the plan's

investment options.

Percentile Rank in CategoryPercentile Rank is a standardized way of ranking items within a peergroup, in this case, funds within the same Morningstar Category. Theobservation with the largest numerical value is ranked zero theobservation with the smallest numerical value is ranked 100. Theremaining observations are placed equal distance from one another onthe rating scale. Note that lower percentile ranks are generally morefavorable for returns (high returns), while higher percentile ranks aregenerally more favorable for risk measures (low risk).

Performance QuartilePerformance Quartile reflects a fund’s Morningstar Rank.

Plan Growth of 10,000This graph shows how an investment of $10,000 invested in the planwould have grown over time based on historical monthly returns andcompares it with that of a benchmark index. The total returns are notadjusted to reflect sales charges or the effects of taxation but areadjusted to reflect actual ongoing fund expenses, and they assumereinvestment of dividends and capital gains. If adjusted, effects of salescharges and taxation would reduce the performance quoted. The growthof $10,000 begins at the earliest common inception date of eachinvestment option within the trailing ten years.

The benchmark index in the Growth of 10,000 graph is an unmanagedportfolio of specified securities and cannot be invested in directly. Thebenchmark index does not reflect any initial or ongoing expenses. Afund's portfolio may differ significantly from the securities in thebenchmark index. The index is chosen by Morningstar.

Plan Trailing Total ReturnsPlan Trailing Total Returns reflect the weighted average of theunderlying holdings’ non-standardized returns during the same periods.The plan-level performance is calculated by applying the holdingweightings supplied by the user to an individual holding’s monthlyreturns. When monthly returns are unavailable for a holding (i.e. due toit not being in existence during the historical period being reported), the

remaining portfolio holdings are re-weighted to maintain consistentproportions. Inception dates are listed in the Standardized and TaxAdjusted Returns Disclosure Statement. Trailing returns are calculatedby geometrically linking these weighted-average monthly returns. Theplan-level returns thus assume monthly rebalancing. Returns forindividual holdings are simple time-weighted trailing returns. Neitherportfolio returns nor holding returns are adjusted for loads or taxes. Ifthey were, the returns shown would be reduced. The returns statedassume the reinvestment of dividends and capital gains. Mutual fundreturns include all ongoing fund expenses. VA/VL returns reflectsubaccount level fund expenses, including M&E expenses,administration fees, and actual ongoing fund-level expenses. Benchmarkreturns may or may not be adjusted to reflect ongoing expenses such assales charges. An investment’s portfolio may differ significantly from thesecurities in the benchmark. Returns for custom benchmarks arecalculated by applying user-supplied weighting to each benchmark’sreturn every month. Trailing returns are calculated by geometricallylinking these weighted-average monthly returns. Custom benchmarkreturns thus assume monthly rebalancing.

Potential Capital Gains ExposurePotential Capital Gains Exposure is an estimate of the percent of afund’s assets that represent gains. It measures how much the fund’sassets have appreciated, and it can be an indicator of possible futurecapital gains distributions. A positive potential capital gains exposurevalue means that the fund’s holdings have generally increased in valuewhile a negative value means that the fund has reported losses on itsbook.

Quarterly ReturnsQuarterly Return is calculated applying the same methodology as TotalReturn except it represents return through each quarter-end.

R-SquaredR-squared is the percentage of a security or portfolio’s returnmovements that are explained by movements in its benchmark index,showing the degree of correlation between the security or portfolio andthe benchmark. This figure is helpful in assessing how likely it is thatbeta and alpha are statistically significant. A value of 1 indicates





perfect correlation between the security or portfolio and its benchmark.The lower the R-squared value, the lower the correlation.

Regional ExposureThe regional exposure is a display of the portfolio’s assets invested inthe regions shown on the report.

Return vs. Category Quartiles GraphThis graph shows how the total return of a single investment matchesup to the returns of its category each year for up to the past 10 years.

Relative ReturnRelative Return is a ratio that shows how an individual fund compares tothe average return of all funds in its Morningstar Category. The categoryaverage is always set to equal 0.00. For example, a Large Blend fundwith a Relative Return of 0.5 has 50 more return than its average peer.The relative return is calculated by dividing the difference between thefund’s return and the category average return by the absolute value ofthe category average return.

Risk/Reward ScatterplotThe risk/reward scatterplot graph plots the return and risk (measured bystandard deviation) for a selection of securities and a benchmark indexfor the trailing period identified in the report. The table beneath thegraph identifies the specific risk and return plot points for the graphedsecurities and the benchmark index.

The returns noted for a security reflect any sales charges that wereapplied in the illustration over the time period selected, but do notreflect impacts of taxation. If impacts of taxation were reflected, thereturns would be lower than those indicated in the report.

The return plotted in the graph is mean geometric return. Standarddeviation is a statistical measure of the volatility of the security’s orportfolio’s returns in relation to the mean return. The larger the standarddeviation, the greater the volatility of return in relation to the meanreturn.

Sector Delta

The sector delta is an equilateral triangle that depicts a fund’s supersector allocation, relative to a benchmark. The sector delta is dividedinto four parts of equal area representing the diversified, defensive,sensitive, and cyclical classifications of a fund’s portfolio and is used torepresent a fund’s allocation at a single point in time or over a historicalperiod.

Sector WeightingsSuper Sectors represent Morningstar's broadest classification of equitysectors by assigning the 11 equity sectors into three classifications. TheCyclical Super Sector includes industries significantly impacted byeconomic shifts, and the stocks included in these sectors generally havebetas greater than 1. The Defensive Super Sector generally includesindustries that are relatively immune to economic cycles, and the stocksin these industries generally have betas less than 1. The Sensitive SuperSector includes industries that ebb and flow with the overall economy,but not severely so. Stocks in the Sensitive Super Sector generally havebetas that are close to 1.

Security TypesThe following security types may be represented herein: bond (BD),closed-end fund (CE), collective investment trust (CIT), exchange-tradedfund (ETF), holding company depository receipt (HOLDR), insurance groupseparate account (IGSA), index (IDX), money market mutual fund (MM),open-end mutual fund (MF), separate account (SA), stock (ST), andvariable annuity/life (VA/L).

Share ChangeShares Change represents the number of shares of a stock bought orsold by a fund since the previously reported portfolio of the fund.

Sharpe RatioSharpe Ratio uses standard deviation and excess return (a measure of asecurity or portfolio’s return in excess of the U.S. Treasury three-monthTreasury Bill) to determine the reward per unit of risk. The higher theSharpe Ratio, the better the portfolio’s historical risk-adjustedperformance. It can be used to compare two portfolios directly on howmuch excess return each portfolio achieved for a certain level of risk.

Sortino RatioSortino Ratio is similar to the Sharpe ratio, except that it uses downsiderisk (downside deviation). Since upside volatility is not necessarilyundesirable, the Sortino ratio is sometimes preferable to a Sharpe ratio.It measures the annualized rate of return for a given level of downsiderisk.

Standard DeviationStandard deviation is a statistical measure of the volatility of thesecurity or portfolio’s returns. The larger the standard deviation, thegreater the volatility of return.

Standardized ReturnsStandardized Return applies the methodology described in theStandardized Returns page of this report. Standardized Return iscalculated through the most recent calendar-quarter end for one-year,five-year, 10-year, and/or since-inception periods, and it demonstratesthe impact of sales charges (if applicable) and ongoing fund expenses.Standardized Return reflects the return an investor may have experienceif the security was purchased at the beginning of the period and sold atthe end, incurring transaction charges.

Stewardship GradeAll Stewardship Grades displayed in this report have been establishedand determined solely by Morningstar, Inc. and do not express theopinions of UBS Financial Services Inc. They are not intended to be apromotion, offer or recommendation by UBS Financial Services Inc. orMorningstar to purchase or liquidate any investment option listed.

These Stewardship Grades are being provided to assist retirement planfiduciaries in evaluating the investment options offered under a definedcontribution retirement plan. A number of different factors should beconsidered when choosing to add, remove or maintain a retirement planinvestment options.

Stewardship grades are assigned to each fund from A (best) to F (worst).Funds are graded on an absolute basis – there is no “curve.”Morningstar analysts’ qualitative evolution of five factors determinesthe grade for each fund: Regulator History, Board Quality, Manager





Incentives, Fees, and Corporate Culture. Points for each component areawarded in increments as small as 0.25 points. The maximum total scoreis 12 points. Each fund’s overall letter grade is assigned as follows:A: 10.5 – 12 pointsB: 7.5 – 10.25 pointsC: 4.5 – 7.25 pointsD: 1.5 – 4.25 pointsF: 1.25 points or fewer

The regulatory history grade reflects any regulatory issues at the fundcompany in recent years. Serious breaches of fiduciary duty can result ina score of -2; funds with no regulatory concerns receive 0 points.Morningstar reviews the remedies in place and the scope of, andcommitment to, reform.

The board quality grade reflects if the board consistently acts in theshareholders’ best interests, if the independent directors havemeaningful investments in the fund, and if the board is led by anindependent chairman and 75% of the directors are independent. Theboard quality score ranges from 0 to 2 points.

The manager incentives grade reflects fund ownership (e.g. does themanager have significant investment in the fund(s) he or she oversees)and compensation structure (e.g. do the compensation plans rewardlong-term performance or emphasize asset growth.) The managerincentive score can range from 0 to 3 points.

The fees grade reflects if the fund is a good value for shareholdersbased on its expense ratio relative to its comparison group. The feesscore can range from 0 to 2 points.

The corporate culture grade reflects how seriously the firm takes itsfiduciary duty to its fund shareholders. The corporate culture score canrange from 0 to 5 points.

Style DriftThe Equity Style Drift graph visually depicts a historical view of theholdings in a fund’s portfolio and where they have fallen in theMorningstar Style Box™. A larger circle within the graph denotes a more

recent portfolio. All circles represent a distinct month-end date where amaximum of 12 circles are available for fund companies that submitmonthly portfolios and a maximum of 4 circles are available for fundcompanies that submit quarterly portfolios.

Stock IntersectionThe stock intersection report reviews the top 25 stock holdings acrossthe plan’s investment option offerings. It identifies (both at the planlevel and the fund level)the overall weightings of a particular security.While this report only displays the top 25 holdings, your plan portfoliomay hold substantially more. For purposes of this report, all investmentoption offerings in the plan are considered on an equally weighted basis,regardless of the actual amount of plan assets invested in each fund.

This report is being provided to help plan fiduciaries evaluate overlapand diversification within the plan's investment option offerings and notintended to be a promotion, offer or recommendation by UBS FinancialServices Inc. or Morningstar to purchase or liquidate any security listed.While the plan does not own the securities held by an open-end fund,closed-end fund, group annuity separate account or similar investment,the holdings are relevant in reviewing the overall asset allocation anddiversification.

Style CountStyle count is a derivation of the Morningstar Style Box that reveals aplan’s investment strategy. For equity holdings, the vertical axis showsthe market capitalization of the stocks owned and the horizontal axisshows investment style (value, blend, or growth). For fixed-incomeholdings, the vertical axis shows the average credit quality of the bondsowned and the horizontal axis shows interest rate sensitivity asmeasured by a bond’s duration (limited, moderate, or extended). Theboxes contain the count of funds in the plan for which the weightedaverage of holdings falls in that box.

Style OrientationStyle orientation is a graph that visually depicts a historical view of theholdings in the portfolio and where they have fallen in the MorningstarStyle Box. A larger circle within the graph denotes a more recentportfolio. All circles represent a distinct month-end date where a

maximum of 12 circles are available for companies that submit monthlyportfolios and a maximum of 4 circles are available for companies thatsubmit quarterly portfolios.

Total ReturnTotal Return, or "Non Load-Adjusted Return", reflects performancewithout adjusting for sales charges (if applicable) or the effects oftaxation, but it is adjusted to reflect all actual ongoing security expensesand assumes reinvestment of dividends and capital gains. It is thereturn an investor would have experienced if the fund was heldthroughout the period. If adjusted for sales charges and the effects oftaxation, the performance quoted would be significantly reduced.

Total Return +/- indicates how a fund has performed relative to its peers(as measure by its Standard Index and/or Morningstar Category Index)over the time periods shown.

Trailing ReturnsStandardized Return applies the methodology described in theStandardized Returns page of this report. Standardized Return iscalculated through the most recent calendar-quarter end for one-year,five-year, 10-year, and/or since-inception periods, and it demonstratesthe impact of sales charges (if applicable) and ongoing fund expenses.Standardized Return reflects the return an investor may haveexperienced if the fund was purchased at the beginning of the periodand sold at the end, incurring transaction charges.

Load-Adjusted Monthly Return is calculated applying the samemethodology as Standardized Return, except that it represents returnthrough month-end. As with Standardized Return, it reflects the impactof sales charges and ongoing fund expenses, but not taxation. Ifadjusted for the effects of taxation, the performance quoted would besignificantly different.

Trailing Return +/- indicates how a fund has performed relative to itspeers (as measure by its Standard Index and/or Morningstar CategoryIndex) over the time periods shown.

Treynor Ratio





Treynor Ratio is a risk-adjusted measure of return based on systematicrisk. It is the annualized monthly excess return of the strategy divided bythe beta of the strategy's excess returns relative to the strategy'sbenchmark. It is similar to the Sharpe ratio with the difference beingthat it uses beta as the measurement of volatility (rather than standarddeviation). In using beta, the Treynor ratio assumes a portfolio is fullydiversified and all unsystematic risk has been eliminated. Investorsshould look for a higher Treynor number, especially relative to astrategy’s benchmark, indicating a higher level of return per unit of risk.

UBS Fund EligibilityInvestment options that are not available through UBS, as well asinvestment options recently removed from the UBS fund eligibility listare specifically noted on the "Performance" page. These investmentoptions are included at your request and such inclusion does notconstitute an endorsement that the Plan continue to hold theseinvestment options. Please speak with your financial advisor foradditional information.

World RegionsBroad breakdown of a portfolio’s geographical exposure, by region andby market maturity. Only non-cash equity assets are evaluated indetermining the exposures. “Not Available” indicates the percentage ofthe equity portion of the portfolio for which Morningstar is unable toassess region or origin.

Investment Risks

Some of the general risk considerations associated with the investmentoptions included in this report are described below. The descriptions arenot meant to be a complete list of all investment risks. For morecomplete information regarding fees, expenses, risks and restrictionsassociated with these investments please review the offeringdocuments and marketing materials. Investors should consult their taxadvisor about their specific tax situation before investing in anysecurities. In addition, clients should familiarize themselves with theparticular market risks and the other risks associated with the specificinvestment. All investments contain risk and may lose value.

International/Emerging Market Equities: Investing in internationalsecurities involve special additional risks. These risks include, but arenot limited to, currency risk, political risk, and risk associated withvarying accounting standards. Investing in emerging markets mayaccentuate these risks.

Sector Strategies: Portfolios that invest exclusively in one sector orindustry involve additional risks. The lack of industry diversificationsubjects the investor to increased industry-specific risks.

Non-Diversified Strategies: Portfolios that invest a significantpercentage of assets in a single issuer involve additional risks, includingshare price fluctuations, because of the increased concentration ofinvestments.

Small Cap Equities: Portfolios that invest in stocks of small companiesinvolve additional risks. Smaller companies typically have a higher riskof failure, and are not as well established as larger blue-chip companies.Historically, smallercompany stocks have experienced a greater degreeof market volatility that the overall market average.

Mid Cap Equities: Portfolios that invest in companies with marketcapitalization below $10 billion involve additional risks. The securitiesof these companies may be more volatile and less liquid than thesecurities of larger companies.

High-Yield Bonds: Portfolios that invest in lower-rated debt securities(commonly referred as junk bonds) involve additional risks because ofthe lower credit quality of the securities in the portfolio. The investorshould be aware of the possible higher level of volatility, and increasedrisk of default.

Tax-Free Municipal Bonds: The investor should note that the incomefrom taxfree municipal bond funds may be subject to state and localtaxation and the Alternative Minimum Tax.

Bonds: Bonds are subject to interest rate risk. As the prevailing level ofbond interest rates rise, the value of bonds already held in a portfoliodecline. Portfolios that hold bonds are subject to declines and increases

in value due to general changes in interest rates.

HOLDRs: The investor should note that these are narrow industry-focused products that, if the industry is hit by hard times, will lackdiversification and possible loss of investment would be likely. Thesesecurities can trade at adiscount to market price, ownership is of afractional share interest, the underlying investments may not berepresentative of the particular industry, the HOLDR might be delistedfrom the AMEX if the number of underlying companies drops below nine,and the investor may experience trading halts.

Hedge Funds: The investor should note that hedge fund investinginvolves specialized risks that are dependent upon the type of strategiesundertaken by the manager. This can include distressed or event-drivenstrategies, long/short strategies, using arbitrage (exploiting priceinefficiencies), international investing, and use of leverage, optionsand/or derivatives. Although the goal of hedge fund managers may be toreduce volatility and produce positive absolute return under a variety ofmarket conditions, hedge funds may involve a high degree of risk andare suitable only for investors of substantial financial means who couldbear the entire loss of their investment.

Bank Loan/Senior Debt: Bank loans and senior loans are impacted by therisks associated with fixed income in general, including interest rate riskand default risk. They are often non-investment grade; therefore, the riskof default is high. These securities are also relatively illiquid. Managedproducts that invest in bank loans/senior debt are often highlyleveraged, producing a high risk of return volatility.

Exchange Traded Notes (ETNs): ETNs are unsecured debt obligations.Any repayment of notes are subject to the issuer's ability to repay itsobligations. ETNs do not typically pay interest.

Leveraged ETFs: Levered investments are designed to meet multiples ofthe return performance of the index they track and seek to meet theirfund objectives on a daily basis (or other time period stated within theFund objective). The leverage/gearing ratio is the amount of excessreturn that a levered investment is designed to achieve in comparison toits index performance (i.e. 200%, 300%, -200%, or -300% or 2X, 3X. -2X,





-3X). Compounding has the ability to affect the performance of the fundto be either greater or less than the index performance multiplied by themultiple stated within the funds objective over a stated time period.

Short Positions: When a short position moves in an unfavorable way, thelosses are theoretically unlimited. The broker may demand morecollateral and a manager might have to close out a short position at aninopportune time to limit further losses.

Long-Short: Due to the strategies used by long-short funds, which mayinclude but are not limited to leverage, short selling, short-term trading,and investing in derivatives, these funds may have greater risk, volatility,and expenses than those focusing on traditional investment strategies.

Liquidity Risk: Closed-end fund, ETF, and HOLDR trading may be halteddue to market conditions, impacting an investor's ability to sell a fund.

Market Price Risk: The market price of ETFs, HOLDRs, and closed-endfunds traded on the secondary market is subject to the forces of supplyand demand and thus independent of the NAV. This can result in themarket price trading at a premium or discount to the NAV which willaffect an investor's value.

Market Risk: The market prices of ETF's and HOLDRs can fluctuate as aresult of several factors, such as security-specific factors or generalinvestor sentiment. Therefore, investors should be aware of the prospectof market fluctuations and the impact it may have on the market price.

Target-Date Funds: Target-date funds typically invest in other mutualfunds and are designed for investors who are planning to retire duringthe target date year. The fund's target date is the approximate date ofwhen investors expect to begin withdrawing their money. Target-datefund's investment objective/strategy typically becomes moreconservative over time primarily by reducing its allocation to equitymutual funds and increasing its allocations in fixed-income mutualfunds. An investor's principal value in a target-date fund is notguaranteed at anytime, including at the fund's target date.

High double- and triple-digit returns were the result of extremely

favorable market conditions, which may not continue to be the case.High returns for short time periods must not be a major factor whenmaking investment decisions.

The information and data presented may be deemed reliable; however,their accuracy and completeness is not guaranteed by UBS FinancialServices Inc.

UBS Retirement Plan Consulting Services is an investmentadvisory program. Details regarding the program, including fees,services, features and suitability are provided in the ADV Disclosure.

This material is not, nor is it intended, to constitute legal, tax oraccounting advice. Neither UBS Financial Services Inc. nor its employees(including its Financial Advisors) provide tax or legal advice. PlanSponsors should consult with legal counsel and/or an accountant or taxprofessional regarding the legal or tax implications regarding their plans.

As a firm providing wealth management services to clients, we offerboth investment advisory and brokerage services. These services areseparate and distinct, differ in material ways and are governed bydifferent laws and separate contracts. For more information on thedistinctions between our brokerage and investment advisory services,please speak with your Financial Advisor or visit our website atubs.com/workingwithus.©UBS 2016. All rights reserved. UBS FinancialServices Inc. is a subsidiary of UBS AG. Member FINRA/SIPC.

Benchmark Disclosure

The past performance of an index is not a guarantee of future results.Each index reflects an unmanaged universe of securities without anydeduction for advisory fees or other expenses that would reduce actualreturns. An actual investment in the securities included in the indexwould require an investor to incur transaction costs, which would lowerthe performance results. Indices are not actively managed and investorscannot invest directly in the indices.

Custom Benchmark Allocation % Type

Russell Mid Cap Growth TR USD 5.62 IDXRussell 1000 Growth TR USD 18.15 IDXRussell 1000 TR USD 11.81 IDXMorningstar Lifetime Mod 2015 TR USD 1.65 IDXMorningstar Lifetime Mod 2025 TR USD 3.24 IDXMorningstar Lifetime Mod 2035 TR USD 3.96 IDXMorningstar Lifetime Mod 2045 TR USD 3.22 IDXMorningstar Lifetime Mod 2050 TR USD 2.15 IDXMorningstar Lifetime Mod 2030 TR USD 3.46 IDXMorningstar Lifetime Mod 2040 TR USD 2.84 IDXMorningstar Lifetime Mod 2020 TR USD 2.02 IDXMorningstar Lifetime Mod 2055 TR USD 0.39 IDXMSCI EM NR USD 3.46 IDXMSCI ACWI NR USD 3.29 IDXMorningstar Mod Tgt Risk TR USD 2.95 IDXRussell 1000 Value TR USD 3.04 IDXRussell 2000 Value TR USD 1.84 IDXRussell 2000 Growth TR USD 1.18 IDXRussell Mid Cap Value TR USD 12.89 IDXMorningstar Lifetime Mod 2060 TR USD 0.04 IDXMSCI ACWI Ex USA NR USD 4.50 IDXMSCI ACWI Ex USA Growth NR USD 1.47 IDXBBgBarc US Agg Bond TR USD 5.24 IDXBofAML US HY Master II TR USD 1.58 IDX

BBgBarc US Agg Bond TR USDThis index is composed of the BarCap Government/Credit Index, theMortgage-Backed Securities Index, and the Asset-Backed Securities Index. Thereturns wepublish for the index are total returns, which includes the dailyreinvestment of dividends. The constituents displayed for this index arefrom the following proxy: iShares Core US Aggregate Bond.

MSCI EAFE NR USDThis Europe, Australasia, and Far East index is a market-capitalization-weighted index of 21 non-U.S., industrialized country indexes.





This disclosure applies to all MSCI indices: Certain information includedherein is derived by Morningstar in part from MSCI’s Index Constituents(the “Index Data”). However, MSCI has not reviewed any informationcontained herein and does not endorse or express any opinion suchinformation or analysis. MSCI does not make any express or impliedwarranties, representations or guarantees concerning the Index Data orany information or data derived therefrom, and in no event will MSCIhave any liability for any direct, indirect, special, punitive, consequentialor any other damages (including lost profits) relating to any use of thisinformation.

S&P 500 TR USDA market capitalization-weighted index composed of the 500 mostwidely held stocks whose assets and/or revenues are based in the US;it's often used as a proxy for the stock market. TR (Total Return) indexesinclude daily reinvestment of dividends. The constituents displayed forthis index are from the following proxy: iShares Core S&P 500.

USTREAS T-Bill Auction Ave 3 MonThree-month T-bills are government-backed, short-term investmentsconsidered to be risk-free and as good as cash because the maturity isonly three months. Morningstar collects yields on the T-bill on a weeklybasis from the Wall Street Journal.

Risk and Return BenchmarkDisclosure

Investment Name MPT Index

American Century Mid Cap Value R6 Russell Mid Cap Value TR USD

American Funds 2015 Trgt Date RetireR6

Morningstar Lifetime Mod 2015 TRUSD



















American Funds Growth Fund of AmerR6

Russell 1000 Growth TR USD

American Funds Invmt Co of Amer R6 Russell 1000 TR USD

Artisan International Institutional MSCI ACWI Ex USA Growth NRUSD

Artisan Mid Cap Institutional Russell Mid Cap Growth TR USD

Baron Growth Instl Russell Mid Cap Growth TR USD

BlackRock Equity Index F Russell 1000 TR USD

Columbia Small Cap Value Fund II Y Russell 2000 Value TR USD

Dreyfus International Stock Index Inv MSCI ACWI Ex USA NR USD

Fidelity® Contrafund® Russell 1000 Growth TR USD

Fidelity® Puritan® Morningstar Mod Tgt Risk TR USD

Franklin Small Cap Growth R6 Russell 2000 Growth TR USD

Great-West SecureFoundation® BalInstl

Morningstar Mod Tgt Risk TR USD

Invesco Growth and Income R6 Russell 1000 Value TR USD

Janus Balanced N Morningstar Mod Tgt Risk TR USD

JPMorgan High Yield R6 BofAML US HY Master II TR USD

Oppenheimer Developing Markets I MSCI EM NR USD

Oppenheimer Global I MSCI ACWI NR USD

Pioneer Fundamental Growth K Russell 1000 Growth TR USD

TIAA-CREF Equity Index Instl Russell 1000 TR USD

Vanguard Total Bond Market Index Adm BBgBarc US Agg Bond TR USD





ab

©2008 UBS Financial Services Inc. All Rights Reserved. Member SIPC.

UBS Financial Services Inc.www.ubs.com/financialservicesinc080311-0674-Q953

UBS Financial Services Inc. is a subsidiary of UBS AG.

ab

Gwinnett DC – Q4 2016 Alert Summary The following funds in the DC Plan failed all four primary alerts: 3- and 5-year total return less than the category benchmark; 3- and 5-year peer rank in the bottom half percentile:

1. Baron Growth Instl – Recommend Retention • 3-Star Morningstar Rating • Long tenured manager • Short term (1-yr) performance 44th percentile peer rank • 5-yr performance top 52nd percentile • MPT statistics comparable to category average • Assets of $4,509,926 (1.35% of total Plan assets)

http://intra.ubs.net/start/index.htm?lang=en

Executive Summary

Gwinnett County

For the Period From January 1, 2016 to December 31, 2016

Agenda Outstanding from previous RPMC Meeting (December 1, 2016)

―Nothing significant to report

Updates for current RPMC Meeting (February 23, 2017) ―Update on 2017 Participant and RPMC surveys

Legislative/Regulatory Updates ―Quarterly Defined Contribution Legal and Regulatory Update for Government Clients

(December 2016) • Pension reform efforts • Empower’s fiduciary rule implementation initiatives • A reminder about required minimum distributions • 2017 pension plan limits

Plan Design and Industry Trends IMPLEMENTED

DC PLAN SURVEY RESULTS * YES NO

Consolidated Record Keeping X Best Practice Open Architecture X Best Practice Auto –Enrollment ** X (401(a)) 64%/40% Auto-Increase ** X 61%/39% Employer Match X 31% Roth 457 ** X 62%/55% Loans ** X 91%/84% Self‐Directed Brokerage ** X 36%/45% Fee Disclosure and Transparency X 76% Investment Advisory Services ** X 82%/85% Lifetime Income Product X 30% Qualified Default Investment Alternative (QDIA) X 86% Behavior-Based Education X N/A

* NADGCA survey (March 2015) – 129 governmental defined contribution plans with a total of $235.0b; 88 – 457(b), 15 – 401(k), 21 – 401(a), 5 – 403(b). ** Statistics from 2015 Plan Sponsor Defined Contribution Survey (February 2016) – 417 Large plans (all industries) and 81 Large Plans (457 only) defined as $200 m - $1 B in size.

Plan Overview (in millions) December 31, 2016 Plan assets were $328.33 million as of December 31, 2016

Plan assets grew $33.55 million (11.4%) from January 1, 2016 to December 31, 2016

Contributions were $30.04 million since January 1, 2016

As of December 31, 2016, there were 11,149 participant account balances throughout the year. There were 9,913 participant account balances on December 31, 2016.

Assets at December 31, 2016 $328.33

Less assets at December 31, 2015 $294.78

Asset change for the year $33.55

Contributions for the year $30.04

Less distributions for the year ($17.93)

Net investment gain for the year $21.44

Asset change for the year $33.55

0

3,000

6,000

9,000

12,000

12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016457(b) Plan 4,769 4,971 5,307 5,678 6,274401(a) Plan 3,322 3,571 3,866 4,301 4,875

Plan Participation

11,149

9,9799,1738,542

8,091

Assets Distribution

Active Participants: 401(a) 457(b) Total

12/31/2015 4,301 5,678 9,979

12/31/2016 4,875 6,274 11,149

Average Account Balance per Participant: 401(a) 457(b) Total

12/31/2015 $34,967 $25,429 $29,540

12/31/2016 $35,534 $24,722 $29,450

12/31/2016 (balances at end of quarter) $40,041 $27,763 $33,122

12/31/2016 (active participants only)* $43,926 $23,158 $32,546

12/31/2016 (active participants - top and bottom balances excluded) ** $40,059 $25,130 $32,296

Average Number of Investment Options per Participant: 401(a) 457(b) Total

12/31/2015 7.9 6.8 7.2

12/31/2016 7.6 6.7 7.1

Asset Distribution by Plan

* Excludes all participants who have a termination date on file (1,042 ppts , $28,964,945 (401(a)); 1,606 ppts , $62,923,582 (457(b) ) **401(a) – excludes top 27 accounts (balances of $500,000+) - $20,189,581, and bottom 162 balances (under $1,000) - $81,893 457(b) – excludes top 14 accounts (balances of $400,000+) - $7,684,692 and bottom 614 balances (under $1,000) - $244,369

$0.0

$100.0

$200.0

$300.0

$400.0

12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016457(b) Plan 112.03 134.02 141.96 144.39 155.10401(a) Plan 108.06 131.30 143.33 150.39 173.23

Dol

lar A

mou

nt (i

n M

illion

s)Asset Growth

328.33294.78285.29

265.32

220.09

Assets by Asset Class

$84.81 $78.02

$54.32

$43.80

$30.08 $16.14

$7.69 $7.13 $6.35

$-

$20.0

$40.0

$60.0

$80.0

$100.0

Dolla

r Am

ount

(in

milli

ons)

25.8%

23.8%16.5%

13.3%

9.2%4.9%

2.3% 2.2% 1.9%Fixed

Large Cap

Fund of Funds

Mid Cap

International

Bond

Self-Directed

Small Cap

Balanced

Percentage of Assets by Asset Class

Self Fund of Small Mid LargeDirected Funds Internat'l Cap Cap Cap Balanced Bond Fixed

1/1/2012 to 12/31/2012 4.9% 26.2% 10.0% 2.3% 9.4% 10.2% 1.7% 4.0% 31.2%1/1/2013 to 12/31/2013 4.2% 25.9% 11.6% 3.2% 10.3% 13.0% 2.0% 4.2% 25.6%1/1/2014 to 12/31/2014 4.1% 25.9% 10.8% 3.3% 10.2% 14.6% 2.7% 4.4% 24.0%1/1/2015 to 12/31/2015 3.8% 24.5% 12.2% 2.4% 10.4% 15.7% 3.3% 3.8% 24.0%1/1/2016 to 12/31/2016 3.1% 21.6% 11.1% 2.3% 14.2% 17.8% 1.7% 5.2% 23.1%

Self Funds of Small Mid LargeDirected Funds Internat'l Cap Cap Cap Balanced Bond Fixed

1/1/2012 to 12/31/2012 1.5% 9.6% 7.3% 3.4% 9.1% 23.8% 1.7% 3.7% 39.8%1/1/2013 to 12/31/2013 1.6% 10.5% 8.3% 4.3% 10.4% 27.0% 1.8% 3.6% 32.6%1/1/2014 to 12/31/2014 1.6% 11.1% 7.9% 4.2% 10.7% 28.8% 2.2% 4.1% 29.4%1/1/2015 to 12/31/2015 1.5% 10.9% 8.2% 2.2% 11.5% 29.9% 2.7% 3.7% 29.3%1/1/2016 to 12/31/2016 1.5% 10.9% 7.0% 2.1% 12.4% 30.4% 2.2% 4.6% 28.9%


1/1/2012 to 12/31/2012 3.2% 17.8% 8.6% 2.8% 9.2% 17.2% 1.7% 3.9% 35.6%1/1/2013 to 12/31/2013 2.9% 18.1% 9.9% 3.8% 10.3% 20.1% 1.9% 3.9% 29.2%1/1/2014 to 12/31/2014 2.8% 18.6% 9.4% 3.8% 10.4% 21.7% 2.5% 4.2% 26.7%1/1/2015 to 12/31/2015 2.7% 17.9% 10.2% 2.3% 10.9% 22.7% 3.0% 3.7% 26.6%1/1/2016 to 12/31/2016 2.3% 16.5% 9.2% 2.2% 13.3% 23.8% 1.9% 4.9% 25.8%

Combined

401(a) Plan

457(b) Plan

Asset Distribution – Combined Asset Class/Fund Name

Amount Pct Accts Amount Pct AcctsSelf-Directed

TD Ameritrade SDB Sw eep Program 1,183,572 0.4% 90 1,326,222 0.4% 87 TD Ameritrade SDB Sw eep Program Roth 12 0.0% 1 2,639 0.0% 2 TD Ameritrade SDB Securities 6,710,157 2.3% 83 6,302,365 1.9% 82 TD Ameritrade SDB Securities Roth 14,223 0.0% 1 62,454 0.0% 2

7,907,964 2.7% 7,693,679 2.3%Fund of Funds

Maxim Aggressive Profile Portfolio 13,520,703 4.6% 750 0 0.0% - Maxim Moderately Aggressive Profile Port 12,379,232 4.2% 649 0 0.0% - Maxim Moderate Profile Portfolio 16,671,390 5.7% 863 0 0.0% 1 Maxim Moderately Conservative Profile 4,873,623 1.7% 253 0 0.0% - Maxim Conservative Profile Portfolio 3,831,330 1.3% 227 0 0.0% - American Funds 2015 Trgt Date Retire R6 0 0.0% - 3,829,679 1.2% 103 American Funds 2020 Trgt Date Retire R6 0 0.0% - 4,629,336 1.4% 145 American Funds 2025 Trgt Date Retire R6 0 0.0% - 7,485,323 2.3% 227 American Funds 2030 Trgt Date Retire R6 0 0.0% - 8,069,872 2.5% 256 American Funds 2035 Trgt Date Retire R6 0 0.0% - 9,261,004 2.8% 307 American Funds 2040 Trgt Date Retire R6 0 0.0% - 6,735,717 2.1% 288 American Funds 2045 Trgt Date Retire R6 0 0.0% - 7,649,374 2.3% 365 American Funds 2050 Trgt Date Retire R6 0 0.0% - 5,109,238 1.6% 260 American Funds 2055 Trgt Date Retire R6 0 0.0% - 925,624 0.3% 107 American Funds 2060 Target Date Ret R6 0 0.0% - 88,520 0.0% 31 Great-West SecureFoundation LT 2015 G 516,133 0.2% 23 0 0.0% - Great-West SecureFoundation LT 2020 G 158,700 0.1% 9 0 0.0% - Great-West SecureFoundation LT 2025 G 130,903 0.0% 17 0 0.0% - Great-West SecureFoundation LT 2030 G 96,039 0.0% 11 0 0.0% - Great-West SecureFoundation LT 2035 G 344,716 0.1% 18 0 0.0% - Great-West SecureFoundation LT 2040 G 39,463 0.0% 18 0 0.0% - Great-West SecureFoundation LT 2045 G 16,503 0.0% 26 0 0.0% - Great-West SecureFoundation LT 2050 G 36,415 0.0% 7 0 0.0% - Great-West SecureFoundation LT 2055 G 23,092 0.0% 7 0 0.0% - Great-West SecureFoundation Bal Inst 0 0.0% - 531,905 0.2% 19

52,638,241 17.9% 54,315,592 16.5%International

Artisan International Inv 6,798,061 2.3% 5,003 0 0.0% - Dreyfus International Stock Index 4,654,846 1.6% 4,670 10,695,026 3.3% 5,652 Artisan International Instl 0 0.0% - 3,486,851 1.1% 2,293 Oppenheimer Developing Markets I 0 0.0% - 8,218,723 2.5% 5,608 Oppenheimer Global I 0 0.0% - 7,681,741 2.3% 5,714 Oppenheimer Global Fund A 0 0.0% - 0 0.0% 1 Oppenheimer Developing Markets Y 5,826,988 2.0% 4,994 0 0.0% - Oppenheimer Global Y 12,896,566 4.4% 5,351 0 0.0% -

30,176,461 10.2% 30,082,342 9.2%

12/31/201612/31/2015Total Active Accounts:12/31/2012 8,09112/31/2013 8,54212/31/2014 9,17312/31/2015 9,97912/31/2016 11,149

Average AccountBalance per Account:

12/31/2012 $27,20212/31/2013 $31,06112/31/2014 $31,10112/31/2015 $29,54012/31/2016 $29,450

Average Number ofInvestment Optionsper Account:

12/31/2012 5.512/31/2013 5.912/31/2014 6.512/31/2015 7.212/31/2016 7.1

Asset Distribution – Combined Continued Small-Cap

Columbia Small Cap Value Fund II Y 0 0.0% - 4,340,109 1.3% 5,014 Columbia Small Cap Value Fund II Z 4,702,695 1.6% 4,915 0 0.0% - Franklin Small Cap Grow th A 2,143,617 0.7% 321 0 0.0% - Franklin Small Cap Grow th R6 0 0.0% - 2,788,633 0.8% 310

6,846,312 2.3% 7,128,742 2.2%M id-Cap

Artisan Mid Cap Inv 10,326,964 3.5% 777 0 0.0% - American Century Mid Cap Value A 17,436,985 5.9% 5,246 0 0.0% - American Century Mid Cap Value R6 0 0.0% - 30,637,291 9.3% 5,981 Baron Grow th Retail 4,395,125 1.5% 1,071 0 0.0% - Artisan Mid Cap Instl 0 0.0% - 8,762,251 2.7% 2,007 Baron Grow th Instl 0 0.0% - 4,398,408 1.3% 2,076

32,159,074 10.9% 43,797,949 13.3%Large-Cap

American Funds Grow th Fund A 16,047,260 5.4% 3,619 0 0.0% 1 American Funds Inv Co Amer A 2,111,057 0.7% 575 0 0.0% - BlackRock Equity Index - Collective F 8,313,057 2.8% 2,314 8,109,934 2.5% 457 Fidelity Contrafund 19,005,497 6.4% 1,114 18,508,802 5.6% 1,179 Pioneer Fundamental Grow th Y 5,481,180 1.9% 4,494 0 0.0% - American Funds Grow th Fund of Amer R6 0 0.0% - 21,517,130 6.6% 6,293 TIAA-CREF Institutional Equity Index 7,708,161 2.6% 2,946 13,799,511 4.2% 5,658 American Funds Invmt Co of America R6 0 0.0% - 5,942,149 1.8% 5,586 Invesco Grow th and Income R6 0 0.0% - 7,175,017 2.2% 5,560 Invesco Grow th and Income Y 8,155,086 2.8% 4,854 0 0.0% - Pioneer Fundamental Grow th K 0 0.0% - 2,966,810 0.9% 1,212 Invesco Grow th & Income A 0 0.0% - 0 0.0% 1

66,821,297 22.7% 78,019,353 23.8%Balanced

Fidelity Puritan 5,441,985 1.8% 2,093 4,000,180 1.2% 427 Janus Balanced Fund T 3,518,179 1.2% 1,896 0 0.0% 1 Janus Balanced N 0 0.0% - 2,347,669 0.7% 344

8,960,164 3.0% 6,347,849 1.9%Bond

JPMorgan High Yield R6 0 0.0% - 3,755,788 1.1% 2,572 JPMorgan High Yield A 2,307,384 0.8% 1,357 0 0.0% - Vanguard Total Bond Market Index Adm 8,628,837 2.9% 4,667 12,380,549 3.8% 5,342

10,936,221 3.7% 16,136,337 4.9%Fixed

Gw innett Stable Value Fund 78,333,988 26.6% 6,992 84,812,328 25.8% 7,508 78,333,988 26.6% 84,812,328 25.8%

294,779,723 100.0% 328,334,170 100.0%

Contributions Contributions by Plan

401(a) 457(b) Benchmark* Total

Contributing Participants:

12/31/2015 3,373 3,911/87% 49% 7,284

12/31/2016 3,568 4,125/90% 40% 7,693

Average Contributions per Participant: 401(a) 457(b) Total Benchmark*

12/31/2015 $4,975 $2,297 $3,537 $3,833

12/31/2016 $5,549 $2,482 $3,904 $5,701

Average Number of Investment Options per Participant 401(a) Benchmark** 457(b) Benchmark**

Total Benchmark**

12/31/2015 11.0 4.7 9.7 4.7 10.3 4.7

12/31/2016 18.0 4.5/4.7 16.6 4.5/4.7 17.3 4.5/4.7

*NAGDCA DC Plan Survey (March 2014) – 126 governmental defined contribution plans with a total of $114.5b; 86 – 457(b), 15 – 401(k), 20 – 401(a), 5 – 403(b). NADGCA DC Plan Survey (March 2015) – 129 governmental defined contribution plans with a total of $235.0b; 88 – 457(b), 15 – 401(k), 21 – 401(a), 5 – 403(b). ** Statistics from 2015 Plan Sponsor Defined Contribution Survey (February 2016) – 417 Large plans (all industries) and 81 Large Plans (457 only) defined as $200 m - $1 B in size.

$0.0

$7.0

$14.0

$21.0

$28.0

$35.0

12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016457(b) Plan 8.35 10.05 9.67 8.98 10.24401(a) Plan 12.54 14.06 15.37 16.78 19.80

Dol

lar A

mou

nt (i

n M

illion

s)Contribution History

30.04

25.7625.0424.11

20.89

Contributions by Asset Class $7.10

$5.14 $5.09 $5.01

$4.49

$1.36 $1.05 $0.82

$-

$2.00

$4.00

$6.00

$8.00

Dolla

r Am

ount

(in

milli

ons)

23.6%

17.1%

16.9%

16.7%

14.9%

4.5% 3.5% 2.7%Large Cap

Fund of Funds

International

Mid Cap

Fixed

Bond

Small Cap

Balanced

Percentage of Contributions by Asset Class

Fund of Small Mid LargeFunds Internat'l Cap Cap Cap Balanced Bond Fixed

1/1/2012 to 12/31/2012 26.6% 16.1% 3.0% 15.4% 13.4% 1.4% 2.6% 21.5%1/1/2013 to 12/31/2013 22.1% 18.3% 3.3% 16.1% 15.7% 1.2% 4.2% 19.1%1/1/2014 to 12/31/2014 19.7% 18.0% 4.5% 15.0% 16.9% 1.8% 4.8% 19.3%1/1/2015 to 12/31/2015 18.8% 19.0% 4.7% 16.5% 19.6% 3.4% 3.9% 14.2%1/1/2016 to 12/31/2016 17.7% 18.3% 3.6% 17.4% 22.6% 2.9% 4.2% 13.4%


1/1/2012 to 12/31/2012 13.8% 13.3% 4.0% 13.6% 18.5% 1.2% 3.2% 32.4%1/1/2013 to 12/31/2013 15.0% 14.8% 3.4% 13.8% 25.6% 1.1% 6.6% 19.7%1/1/2014 to 12/31/2014 13.0% 14.6% 4.5% 14.7% 23.7% 1.7% 5.3% 22.6%1/1/2015 to 12/31/2015 17.0% 16.1% 4.2% 15.2% 23.3% 3.1% 4.4% 16.7%1/1/2016 to 12/31/2016 15.9% 14.4% 3.4% 15.2% 25.6% 2.5% 5.1% 17.9%


1/1/2012 to 12/31/2012 21.5% 15.0% 3.4% 14.7% 15.5% 1.3% 2.8% 25.9%1/1/2013 to 12/31/2013 19.1% 16.8% 3.3% 15.1% 19.9% 1.1% 5.2% 19.4%1/1/2014 to 12/31/2014 17.1% 16.7% 4.5% 14.9% 19.5% 1.7% 5.0% 20.5%1/1/2015 to 12/31/2015 18.2% 18.0% 4.5% 16.0% 20.9% 3.3% 4.0% 15.0%1/1/2016 to 12/31/2016 17.1% 16.9% 3.5% 16.7% 23.6% 2.7% 4.5% 14.9%

Combined

401(a) Plan

457(b) Plan

Contributions by Fund – Combined

Asset Class/Fund NameAmount Pct Accts Amount Pct Accts

Fund of FundsMaxim Aggressive Profile Portfolio 1,217,406 4.7% 579 46,407 0.2% 477 Maxim Moderately Aggressive Profile Port 981,238 3.8% 466 35,494 0.1% 377 Maxim Moderate Profile Portfolio 1,752,664 6.8% 641 64,124 0.2% 535 Maxim Moderately Conservative Profile 303,534 1.2% 185 10,091 0.0% 143 Maxim Conservative Profile Portfolio 265,232 1.0% 152 9,881 0.0% 126 Great-West Agg Profile II Fund Inst 0 0.0% - 1,051,457 3.5% 743 Great-West Con Profile II Fund Inst 0 0.0% - 261,150 0.9% 212 Great-West Mod Agg Profile II Fund Inst 0 0.0% - 935,453 3.1% 665 Great-West Mod Con Profile II Fund Inst 0 0.0% - 232,843 0.8% 249 Great-West Mod Profile II Fund Inst 0 0.0% - 1,470,403 4.9% 921 American Funds 2015 Trgt Date Retire R6 0 0.0% - 19,603 0.1% 41 American Funds 2020 Trgt Date Retire R6 0 0.0% - 169,486 0.6% 87 American Funds 2025 Trgt Date Retire R6 0 0.0% - 52,768 0.2% 121 American Funds 2030 Trgt Date Retire R6 0 0.0% - 68,295 0.2% 160 American Funds 2035 Trgt Date Retire R6 0 0.0% - 77,272 0.3% 206 American Funds 2040 Trgt Date Retire R6 0 0.0% - 71,233 0.2% 194 American Funds 2045 Trgt Date Retire R6 0 0.0% - 94,946 0.3% 243 American Funds 2050 Trgt Date Retire R6 0 0.0% - 66,562 0.2% 172 American Funds 2055 Trgt Date Retire R6 0 0.0% - 26,023 0.1% 80 American Funds 2060 Target Date Ret R6 0 0.0% - 7,444 0.0% 26 Great-West SecureFoundation LT 2015 G 30,960 0.1% 17 34,531 0.1% 19 Great-West SecureFoundation LT 2020 G 1,404 0.0% 5 1,871 0.0% 8 Great-West SecureFoundation LT 2025 G 23,095 0.1% 18 18,000 0.1% 13 Great-West SecureFoundation LT 2030 G 28,742 0.1% 10 36,894 0.1% 21 Great-West SecureFoundation LT 2035 G 44,107 0.2% 15 60,047 0.2% 40 Great-West SecureFoundation LT 2040 G 23,579 0.1% 16 140,473 0.5% 31 Great-West SecureFoundation LT 2045 G 6,302 0.0% 22 46,830 0.2% 46 Great-West SecureFoundation LT 2050 G 2,839 0.0% 6 13,980 0.0% 14 Great-West SecureFoundation LT 2055 G 3,385 0.0% 6 12,884 0.0% 14

4,684,485 18.2% 5,136,444 17.1%International

Artisan International Inv 1,056,513 4.1% 4,480 36,534 0.1% 3,810 Dreyfus International Stock Index 546,419 2.1% 4,359 1,669,183 5.6% 6,164 Artisan International Instl 0 0.0% - 556,743 1.9% 5,945 Oppenheimer Developing Markets I 0 0.0% - 1,433,525 4.8% 6,179 Oppenheimer Global I 0 0.0% - 1,256,609 4.2% 6,492 Oppenheimer Developing Markets Y 1,322,261 5.1% 4,449 52,019 0.2% 3,840 Oppenheimer Global Y 1,712,355 6.6% 4,639 82,844 0.3% 4,014

4,637,548 18.0% 5,087,455 16.9%

1/1/2016 to 12/31/20161/1/2015 to 12/31/2015Total AccountsReceiving Contributions:

12/31/2012 6,00812/31/2013 6,29112/31/2014 6,71012/31/2015 7,28412/31/2016 7,693

12/31/2012 $3,47712/31/2013 $3,83312/31/2014 $3,73112/31/2015 $3,53712/31/2016 $3,904

12/31/2012 8.312/31/2013 8.312/31/2014 9.912/31/2015 10.312/31/2016 17.3

Average Number of Investment Options per Account:

Average Contributions per Account:

Contributions by Fund – Combined Continued

Small-CapColumbia Small Cap Value Fund II Y 0 0.0% - 821,105 2.7% 6,072 Columbia Small Cap Value Fund II Z 786,815 3.1% 4,418 36,943 0.1% 3,795 Neuberger Berman Genesis Fund - Trust 70,809 0.3% 204 0 0.0% - Franklin Small Cap Grow th A 307,617 1.2% 3,048 6,584 0.0% 170 Franklin Small Cap Grow th R6 0 0.0% - 183,649 0.6% 385

1,165,241 4.5% 1,048,281 3.5%M id-Cap

Artisan Mid Cap Inv 436,815 1.7% 623 16,531 0.1% 418 American Century Mid Cap Value A 3,480,304 13.5% 4,589 128,709 0.4% 3,978 American Century Mid Cap Value R6 0 0.0% - 4,186,229 13.9% 6,511 Nuveen Tradew inds Value Opportunities I 7,893 0.0% 76 0 0.0% - Baron Grow th Retail 201,911 0.8% 1,209 7,909 0.0% 907 Artisan Mid Cap Instl 0 0.0% - 467,292 1.6% 1,791 Baron Grow th Instl 0 0.0% - 201,779 0.7% 1,970

4,126,924 16.0% 5,008,449 16.7%Large-Cap

American Funds Grow th Fund A 910,235 3.5% 4,453 31,366 0.1% 2,749 American Funds Inv Co Amer A 1,563,313 6.1% 3,954 5,313 0.0% 272 BlackRock Equity Index - Collective F 574,443 2.2% 3,641 430,690 1.4% 1,755 Fidelity Contrafund 821,144 3.2% 662 1,119,537 3.7% 1,175 Pioneer Fundamental Grow th Y 504,754 2.0% 3,734 34,494 0.1% 3,604 American Funds Grow th Fund of Amer R6 0 0.0% - 1,240,560 4.1% 6,692 TIAA-CREF Institutional Equity Index 491,556 1.9% 3,221 2,194,916 7.3% 5,967 American Funds Invmt Co of America R6 0 0.0% - 372,030 1.2% 4,859 Invesco Grow th and Income R6 0 0.0% - 974,780 3.2% 6,133 Invesco Grow th and Income Y 512,521 2.0% 4,093 43,657 0.1% 3,720 Pioneer Fundamental Grow th K 0 0.0% - 650,560 2.2% 5,849

5,377,966 20.9% 7,097,903 23.6%Balanced

Fidelity Puritan 411,271 1.6% 1,687 533,917 1.8% 2,353 Janus Balanced Fund T 440,367 1.7% 1,823 10,661 0.0% 1,146 Janus Balanced N 0 0.0% - 271,480 0.9% 2,208

851,638 3.3% 816,057 2.7%Bond

JPMorgan High Yield R6 0 0.0% - 258,276 0.9% 2,819 PIMCO Total Return Admin 51,862 0.2% 3,400 0 0.0% - JPMorgan High Yield A 187,830 0.7% 1,005 7,480 0.0% 850 Vanguard Total Bond Market Index Adm 803,415 3.1% 3,929 1,089,759 3.6% 4,245

1,043,108 4.0% 1,355,514 4.5%Fixed


25,762,280 100.0% 30,036,226 100.0%

Benefit Payment Distribution – Combined

Amount Pct Count Amount Pct CountFull Withdrawals

Benefit Payment 484 0.0% 1 0 0.0% 0Death 529,158 2.8% 12 220,382 1.2% 20Retirement 733,366 3.9% 10 1,860,139 10.4% 54Separation of Service 10,939,411 57.6% 578 8,882,392 49.5% 1,090Total Full Withdrawals: 12,202,419 64.2% 601 10,962,914 61.1% 1,164

Partial WithdrawalsINSERVROMT 307,412 1.6% 11 56,939 0.3% 9Death 62,951 0.3% 3 86,057 0.5% 5Hardship 58,307 0.3% 18 55,050 0.3% 14In Service 12,169 0.1% 1 7,169 0.0% 1Loan 1,866,019 9.8% 293 2,112,755 11.8% 298Minimum Distribution 16,944 0.1% 14 7,392 0.0% 5Retirement 151,816 0.8% 14 1,396,147 7.8% 48Separation of Service 3,018,566 15.9% 150 2,109,725 11.8% 116Service Credit 22,093 0.1% 6 11,682 0.1% 4Total Partial Withdrawals: 5,516,277 29.0% 510 5,842,916 32.6% 500

Periodic PaymentsBenefit Payment 35,635 0.2% 5 27,678 0.2% 3Minimum Distribution 239,218 1.3% 79 275,157 1.5% 90Retirement 911,345 4.8% 65 735,619 4.1% 65Separation of Service 87,400 0.5% 4 85,000 0.5% 3Total Periodic Payments: 1,273,598 6.7% 153 1,123,454 6.3% 161

18,992,294 100.0% 1,264 17,929,284 100.0% 1,825

1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

Pending Litigation Great-West Financial has two pending lawsuits to report as of December 31, 2016

Plan Review

Gwinnett County

For the Period From January 1, 2016 to December 31, 2016

2

Table of Contents

Executive Summary

Plan Assets

Contributions

Participation

Distributions

Participant Services

Great-West Update

Disclosures

3

Executive Summary (in Millions)

Assets at December 31, 2016 $328.33 Less assets at December 31, 2015 $294.78 Asset change for the year $33.55

Contributions for the year $30.04 Less distributions for the year -$17.93 Net investment gain for the year $21.44 Asset change for the year $33.55

Asset Components

Total Assets

4

Executive Summary

Plan assets were at $328.33 million as of December 31, 2016

Plan assets grew by $33.55 million (11.4%) from January 1, 2016 to December 31, 2016

Contributions were $30.04 million from January 1, 2016 to December 31, 2016

From January 1, 2016 to December 31, 2016 there were 11,149 participants

5

$0.0

$100.0

$200.0

$300.0

$400.0

12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016457(b) Plan 112.03 134.02 141.96 144.39 155.10401(a) Plan 108.06 131.30 143.33 150.39 173.23

Dol

lar A

mou

nt (i

n M

illion

s)Asset Growth

328.33294.78285.29

265.32

220.09

6

Assets by Asset Class

$84.81 $78.02

$54.32

$43.80

$30.08 $16.14

$7.69 $7.13 $6.35

$-

$20.0

$40.0

$60.0

$80.0

$100.0

Dolla

r Am

ount

(in

milli

ons)

25.8%

23.8%16.5%

13.3%

9.2%4.9%

2.3% 2.2% 1.9%Fixed

Large Cap

Fund of Funds

Mid Cap

International

Bond

Self-Directed

Small Cap

Balanced

7

Percentage of Assets by Asset Class


1/1/2012 to 12/31/2012 4.9% 26.2% 10.0% 2.3% 9.4% 10.2% 1.7% 4.0% 31.2%1/1/2013 to 12/31/2013 4.2% 25.9% 11.6% 3.2% 10.3% 13.0% 2.0% 4.2% 25.6%1/1/2014 to 12/31/2014 4.1% 25.9% 10.8% 3.3% 10.2% 14.6% 2.7% 4.4% 24.0%1/1/2015 to 12/31/2015 3.8% 24.5% 12.2% 2.4% 10.4% 15.7% 3.3% 3.8% 24.0%1/1/2016 to 12/31/2016 3.1% 21.6% 11.1% 2.3% 14.2% 17.8% 1.7% 5.2% 23.1%

Self Funds of Small Mid LargeDirected Funds Internat'l Cap Cap Cap Balanced Bond Fixed

1/1/2012 to 12/31/2012 1.5% 9.6% 7.3% 3.4% 9.1% 23.8% 1.7% 3.7% 39.8%1/1/2013 to 12/31/2013 1.6% 10.5% 8.3% 4.3% 10.4% 27.0% 1.8% 3.6% 32.6%1/1/2014 to 12/31/2014 1.6% 11.1% 7.9% 4.2% 10.7% 28.8% 2.2% 4.1% 29.4%1/1/2015 to 12/31/2015 1.5% 10.9% 8.2% 2.2% 11.5% 29.9% 2.7% 3.7% 29.3%1/1/2016 to 12/31/2016 1.5% 10.9% 7.0% 2.1% 12.4% 30.4% 2.2% 4.6% 28.9%


1/1/2012 to 12/31/2012 3.2% 17.8% 8.6% 2.8% 9.2% 17.2% 1.7% 3.9% 35.6%1/1/2013 to 12/31/2013 2.9% 18.1% 9.9% 3.8% 10.3% 20.1% 1.9% 3.9% 29.2%1/1/2014 to 12/31/2014 2.8% 18.6% 9.4% 3.8% 10.4% 21.7% 2.5% 4.2% 26.7%1/1/2015 to 12/31/2015 2.7% 17.9% 10.2% 2.3% 10.9% 22.7% 3.0% 3.7% 26.6%1/1/2016 to 12/31/2016 2.3% 16.5% 9.2% 2.2% 13.3% 23.8% 1.9% 4.9% 25.8%

Combined

401(a) Plan

457(b) Plan

8

Assets by Investment Option $1.326

$0.003$6.302

$0.062$0.000

$3.830$4.629

$7.485$8.070$9.261

$6.736$7.649

$5.109$0.926

$0.089$0.532

$10.695$3.487

$8.219$7.682

$0.000$4.340

$2.789$30.637

$8.762$4.398

$0.000$8.110

$18.509$21.517

$13.800$5.942

$7.175$2.967

$0.000$4.000

$0.000$2.348

$3.756$12.381

$84.812$0.0 $20.0 $40.0 $60.0 $80.0 $100.0

TD Ameritrade SDB Sweep ProgramTD Ameritrade SDB Sweep Program Roth

TD Ameritrade SDB SecuritiesTD Ameritrade SDB Securities Roth

Maxim Moderate Profile PortfolioAmerican Funds 2015 Trgt Date Retire R6American Funds 2020 Trgt Date Retire R6American Funds 2025 Trgt Date Retire R6American Funds 2030 Trgt Date Retire R6American Funds 2035 Trgt Date Retire R6American Funds 2040 Trgt Date Retire R6American Funds 2045 Trgt Date Retire R6American Funds 2050 Trgt Date Retire R6American Funds 2055 Trgt Date Retire R6American Funds 2060 Target Date Ret R6

Great-West SecureFoundation Bal InstDreyfus International Stock Index

Artisan International InstlOppenheimer Developing Markets I

Oppenheimer Global IOppenheimer Global Fund A

Columbia Small Cap Value Fund II YFranklin Small Cap Growth R6

American Century Mid Cap Value R6Artisan Mid Cap Instl

Baron Growth InstlAmerican Funds Growth Fund A

BlackRock Equity Index - Collective FFidelity Contrafund

American Funds Growth Fund of Amer R6TIAA-CREF Institutional Equity Index

American Funds Invmt Co of America R6Invesco Growth and Income R6Pioneer Fundamental Growth K

Invesco Growth & Income AFidelity Puritan

Janus Balanced Fund TJanus Balanced N

JPMorgan High Yield R6Vanguard Total Bond Market Index Adm

Gwinnett Stable Value Fund

Dollar Amount (in millions)

9

Asset Distribution – 401(a) 01 Plan

Active Participants:12/31/2012 3,32212/31/2013 3,57112/31/2014 3,86612/31/2015 4,30112/31/2016 4,875

Average AccountBalance per Participant:

12/31/2012 $32,52912/31/2013 $36,76912/31/2014 $37,07512/31/2015 $34,96712/31/2016 $35,534

Average Number ofInvestment Optionsper Participant:

12/31/2012 6.112/31/2013 6.512/31/2014 7.112/31/2015 7.912/31/2016 7.6


Self-DirectedTD Ameritrade SDB Sw eep Program 515,044 0.3% 45 569,502 0.3% 43 TD Ameritrade SDB Securities 5,178,888 3.4% 44 4,788,289 2.8% 42

5,693,931 3.8% 5,357,791 3.1%Fund of Funds

Maxim Aggressive Profile Portfolio 9,221,120 6.1% 299 0 0.0% - Maxim Moderately Aggressive Profile Port 8,296,906 5.5% 285 0 0.0% - Maxim Moderate Profile Portfolio 13,212,305 8.8% 477 0 0.0% - Maxim Moderately Conservative Profile 3,353,934 2.2% 115 0 0.0% - Maxim Conservative Profile Portfolio 2,305,587 1.5% 92 0 0.0% - American Funds 2015 Trgt Date Retire R6 0 0.0% - 2,344,371 1.4% 45 American Funds 2020 Trgt Date Retire R6 0 0.0% - 2,745,699 1.6% 67 American Funds 2025 Trgt Date Retire R6 0 0.0% - 4,172,291 2.4% 89 American Funds 2030 Trgt Date Retire R6 0 0.0% - 5,440,514 3.1% 94 American Funds 2035 Trgt Date Retire R6 0 0.0% - 6,368,707 3.7% 137 American Funds 2040 Trgt Date Retire R6 0 0.0% - 4,890,628 2.8% 127 American Funds 2045 Trgt Date Retire R6 0 0.0% - 6,079,289 3.5% 185 American Funds 2050 Trgt Date Retire R6 0 0.0% - 4,373,449 2.5% 148 American Funds 2055 Trgt Date Retire R6 0 0.0% - 806,583 0.5% 60 American Funds 2060 Target Date Ret R6 0 0.0% - 68,531 0.0% 14 Great-West SecureFoundation LT 2015 G 165,730 0.1% 14 0 0.0% - Great-West SecureFoundation LT 2020 G 54,166 0.0% 4 0 0.0% - Great-West SecureFoundation LT 2025 G 80,279 0.1% 7 0 0.0% - Great-West SecureFoundation LT 2030 G 17,152 0.0% 4 0 0.0% - Great-West SecureFoundation LT 2035 G 133,520 0.1% 9 0 0.0% - Great-West SecureFoundation LT 2040 G 16,426 0.0% 8 0 0.0% - Great-West SecureFoundation LT 2045 G 4,795 0.0% 11 0 0.0% - Great-West SecureFoundation LT 2050 G 7,798 0.0% 3 0 0.0% - Great-West SecureFoundation LT 2055 G 15,438 0.0% 4 0 0.0% - Great-West SecureFoundation Bal Inst 0 0.0% - 165,970 0.1% 8

36,885,156 24.5% 37,456,032 21.6%International

Artisan International Inv 3,656,431 2.4% 2,420 0 0.0% - Dreyfus International Stock Index 2,906,648 1.9% 2,291 7,372,123 4.3% 2,790 Artisan International Instl 0 0.0% - 1,596,306 0.9% 1,023 Oppenheimer Developing Markets I 0 0.0% - 5,639,062 3.3% 2,769 Oppenheimer Global I 0 0.0% - 4,607,818 2.7% 2,791 Oppenheimer Developing Markets Y 3,749,952 2.5% 2,454 0 0.0% - Oppenheimer Global Y 7,978,949 5.3% 2,590 0 0.0% -

18,291,980 12.2% 19,215,308 11.1%

12/31/201612/31/2015

10

Asset Distribution – 401(a) 01 Plan Continued

Small-CapColumbia Small Cap Value Fund II Y 0 0.0% - 2,543,884 1.5% 2,496 Columbia Small Cap Value Fund II Z 2,916,789 1.9% 2,424 0 0.0% - Franklin Small Cap Grow th A 754,417 0.5% 106 0 0.0% - Franklin Small Cap Grow th R6 0 0.0% - 1,399,311 0.8% 115

3,671,205 2.4% 3,943,194 2.3%M id-Cap

Artisan Mid Cap Inv 3,155,379 2.1% 202 0 0.0% - American Century Mid Cap Value A 10,535,303 7.0% 2,518 0 0.0% - American Century Mid Cap Value R6 0 0.0% - 19,306,811 11.1% 2,880 Baron Grow th Retail 1,892,353 1.3% 437 0 0.0% - Artisan Mid Cap Instl 0 0.0% - 3,213,893 1.9% 794 Baron Grow th Instl 0 0.0% - 2,047,587 1.2% 933

15,583,035 10.4% 24,568,291 14.2%Large-Cap

American Funds Grow th Fund A 3,639,430 2.4% 1,494 0 0.0% - American Funds Inv Co Amer A 921,094 0.6% 247 0 0.0% - BlackRock Equity Index - Collective F 3,449,599 2.3% 1,039 2,911,661 1.7% 107 Fidelity Contrafund 4,140,973 2.8% 242 3,990,952 2.3% 280 Pioneer Fundamental Grow th Y 3,245,765 2.2% 2,212 0 0.0% - American Funds Grow th Fund of Amer R6 0 0.0% - 7,442,019 4.3% 2,836 TIAA-CREF Institutional Equity Index 4,326,825 2.9% 1,442 8,403,388 4.9% 2,790 American Funds Invmt Co of America R6 0 0.0% - 3,535,009 2.0% 2,745 Invesco Grow th and Income R6 0 0.0% - 2,987,317 1.7% 2,691 Invesco Grow th and Income Y 3,863,866 2.6% 2,323 0 0.0% - Pioneer Fundamental Grow th K 0 0.0% - 1,547,429 0.9% 544

23,587,552 15.7% 30,817,776 17.8%Balanced

Fidelity Puritan 2,645,063 1.8% 984 1,462,069 0.8% 148 Janus Balanced Fund T 2,361,131 1.6% 923 0 0.0% - Janus Balanced N 0 0.0% - 1,499,259 0.9% 158

5,006,194 3.3% 2,961,328 1.7%Bond

JPMorgan High Yield R6 0 0.0% - 2,128,661 1.2% 1,228 JPMorgan High Yield A 1,184,560 0.8% 651 0 0.0% - Vanguard Total Bond Market Index Adm 4,467,166 3.0% 2,279 6,811,168 3.9% 2,597

5,651,726 3.8% 8,939,829 5.2%Fixed


150,391,153 100.0% 173,229,422 100.0%

11

Asset Distribution – 457(b) 03 Plan


Self-DirectedTD Ameritrade SDB Sw eep Program 668,528 0.5% 45 756,719 0.5% 44 TD Ameritrade SDB Sw eep Program Roth 12 0.0% 1 2,639 0.0% 2 TD Ameritrade SDB Securities 1,531,269 1.1% 39 1,514,076 1.0% 40 TD Ameritrade SDB Securities Roth 14,223 0.0% 1 62,454 0.0% 2

2,214,033 1.5% 2,335,888 1.5%Fund of Funds

Maxim Aggressive Profile Portfolio 4,299,583 3.0% 451 0 0.0% - Maxim Moderately Aggressive Profile Port 4,082,327 2.8% 364 0 0.0% - Maxim Moderate Profile Portfolio 3,459,085 2.4% 386 0 0.0% 1 Maxim Moderately Conservative Profile 1,519,689 1.1% 138 0 0.0% - Maxim Conservative Profile Portfolio 1,525,743 1.1% 135 0 0.0% - American Funds 2015 Trgt Date Retire R6 0 0.0% - 1,485,308 1.0% 58 American Funds 2020 Trgt Date Retire R6 0 0.0% - 1,883,636 1.2% 78 American Funds 2025 Trgt Date Retire R6 0 0.0% - 3,313,032 2.1% 138 American Funds 2030 Trgt Date Retire R6 0 0.0% - 2,629,358 1.7% 162 American Funds 2035 Trgt Date Retire R6 0 0.0% - 2,892,297 1.9% 170 American Funds 2040 Trgt Date Retire R6 0 0.0% - 1,845,089 1.2% 161 American Funds 2045 Trgt Date Retire R6 0 0.0% - 1,570,085 1.0% 180 American Funds 2050 Trgt Date Retire R6 0 0.0% - 735,789 0.5% 112 American Funds 2055 Trgt Date Retire R6 0 0.0% - 119,040 0.1% 47 American Funds 2060 Target Date Ret R6 0 0.0% - 19,990 0.0% 17 Great-West SecureFoundation LT 2015 G 350,403 0.2% 9 0 0.0% - Great-West SecureFoundation LT 2020 G 104,533 0.1% 5 0 0.0% - Great-West SecureFoundation LT 2025 G 50,624 0.0% 10 0 0.0% - Great-West SecureFoundation LT 2030 G 78,887 0.1% 7 0 0.0% - Great-West SecureFoundation LT 2035 G 211,196 0.1% 9 0 0.0% - Great-West SecureFoundation LT 2040 G 23,036 0.0% 10 0 0.0% - Great-West SecureFoundation LT 2045 G 11,708 0.0% 15 0 0.0% - Great-West SecureFoundation LT 2050 G 28,617 0.0% 4 0 0.0% - Great-West SecureFoundation LT 2055 G 7,654 0.0% 3 0 0.0% - Great-West SecureFoundation Bal Inst 0 0.0% - 365,936 0.2% 11

15,753,085 10.9% 16,859,560 10.9%International


11,884,481 8.2% 10,867,034 7.0%

12/31/2015 12/31/2016Active Participants:12/31/2012 4,76912/31/2013 4,97112/31/2014 5,30712/31/2015 5,67812/31/2016 6,274

Average AccountBalance per Participant:

12/31/2012 $23,49112/31/2013 $26,96112/31/2014 $26,74912/31/2015 $25,42912/31/2016 $24,722

Average Number ofInvestment Optionsper Participant:

12/31/2012 5.112/31/2013 5.512/31/2014 6.012/31/2015 6.812/31/2016 6.7

12

Asset Distribution – 457(b) 03 Plan Continued

Small-CapColumbia Small Cap Value Fund II Y 0 0.0% - 1,796,225 1.2% 2,518 Columbia Small Cap Value Fund II Z 1,785,906 1.2% 2,491 0 0.0% - Franklin Small Cap Grow th A 1,389,201 1.0% 215 0 0.0% - Franklin Small Cap Grow th R6 0 0.0% - 1,389,322 0.9% 195

3,175,107 2.2% 3,185,547 2.1%M id-Cap

Artisan Mid Cap Inv 7,171,585 5.0% 575 0 0.0% - American Century Mid Cap Value A 6,901,682 4.8% 2,728 0 0.0% - American Century Mid Cap Value R6 0 0.0% - 11,330,480 7.3% 3,101 Baron Grow th Retail 2,502,773 1.7% 634 0 0.0% - Artisan Mid Cap Instl 0 0.0% - 5,548,358 3.6% 1,213 Baron Grow th Instl 0 0.0% - 2,350,821 1.5% 1,143

16,576,040 11.5% 19,229,658 12.4%Large-Cap

American Funds Grow th Fund A 12,407,830 8.6% 2,125 0 0.0% 1 American Funds Inv Co Amer A 1,189,962 0.8% 328 0 0.0% - BlackRock Equity Index - Collective F 4,863,458 3.4% 1,275 5,198,273 3.4% 350 Fidelity Contrafund 14,864,524 10.3% 872 14,517,850 9.4% 899 Pioneer Fundamental Grow th Y 2,235,415 1.5% 2,282 0 0.0% - American Funds Grow th Fund of Amer R6 0 0.0% - 14,075,111 9.1% 3,457 TIAA-CREF Institutional Equity Index 3,381,336 2.3% 1,504 5,396,123 3.5% 2,868 American Funds Invmt Co of America R6 0 0.0% - 2,407,139 1.6% 2,841 Invesco Grow th and Income R6 0 0.0% - 4,187,700 2.7% 2,869 Invesco Grow th and Income Y 4,291,220 3.0% 2,531 0 0.0% - Pioneer Fundamental Grow th K 0 0.0% - 1,419,381 0.9% 668 Invesco Grow th & Income A 0 0.0% - 0 0.0% 1

43,233,745 29.9% 47,201,577 30.4%Balanced

Fidelity Puritan 2,796,922 1.9% 1,109 2,538,111 1.6% 279 Janus Balanced Fund T 1,157,048 0.8% 973 0 0.0% 1 Janus Balanced N 0 0.0% - 848,410 0.5% 186

3,953,969 2.7% 3,386,521 2.2%Bond

JPMorgan High Yield R6 0 0.0% - 1,627,128 1.0% 1,344 JPMorgan High Yield A 1,122,824 0.8% 706 0 0.0% - Vanguard Total Bond Market Index Adm 4,161,671 2.9% 2,388 5,569,380 3.6% 2,745

5,284,495 3.7% 7,196,508 4.6%Fixed


144,388,570 100.0% 155,104,749 100.0%

13

Asset Distribution – Combined Asset Class/Fund Name

Amount Pct Accts Amount Pct AcctsSelf-Directed

TD Ameritrade SDB Sw eep Program 1,183,572 0.4% 90 1,326,222 0.4% 87 TD Ameritrade SDB Sw eep Program Roth 12 0.0% 1 2,639 0.0% 2 TD Ameritrade SDB Securities 6,710,157 2.3% 83 6,302,365 1.9% 82 TD Ameritrade SDB Securities Roth 14,223 0.0% 1 62,454 0.0% 2

7,907,964 2.7% 7,693,679 2.3%Fund of Funds

Maxim Aggressive Profile Portfolio 13,520,703 4.6% 750 0 0.0% - Maxim Moderately Aggressive Profile Port 12,379,232 4.2% 649 0 0.0% - Maxim Moderate Profile Portfolio 16,671,390 5.7% 863 0 0.0% 1 Maxim Moderately Conservative Profile 4,873,623 1.7% 253 0 0.0% - Maxim Conservative Profile Portfolio 3,831,330 1.3% 227 0 0.0% - American Funds 2015 Trgt Date Retire R6 0 0.0% - 3,829,679 1.2% 103 American Funds 2020 Trgt Date Retire R6 0 0.0% - 4,629,336 1.4% 145 American Funds 2025 Trgt Date Retire R6 0 0.0% - 7,485,323 2.3% 227 American Funds 2030 Trgt Date Retire R6 0 0.0% - 8,069,872 2.5% 256 American Funds 2035 Trgt Date Retire R6 0 0.0% - 9,261,004 2.8% 307 American Funds 2040 Trgt Date Retire R6 0 0.0% - 6,735,717 2.1% 288 American Funds 2045 Trgt Date Retire R6 0 0.0% - 7,649,374 2.3% 365 American Funds 2050 Trgt Date Retire R6 0 0.0% - 5,109,238 1.6% 260 American Funds 2055 Trgt Date Retire R6 0 0.0% - 925,624 0.3% 107 American Funds 2060 Target Date Ret R6 0 0.0% - 88,520 0.0% 31 Great-West SecureFoundation LT 2015 G 516,133 0.2% 23 0 0.0% - Great-West SecureFoundation LT 2020 G 158,700 0.1% 9 0 0.0% - Great-West SecureFoundation LT 2025 G 130,903 0.0% 17 0 0.0% - Great-West SecureFoundation LT 2030 G 96,039 0.0% 11 0 0.0% - Great-West SecureFoundation LT 2035 G 344,716 0.1% 18 0 0.0% - Great-West SecureFoundation LT 2040 G 39,463 0.0% 18 0 0.0% - Great-West SecureFoundation LT 2045 G 16,503 0.0% 26 0 0.0% - Great-West SecureFoundation LT 2050 G 36,415 0.0% 7 0 0.0% - Great-West SecureFoundation LT 2055 G 23,092 0.0% 7 0 0.0% - Great-West SecureFoundation Bal Inst 0 0.0% - 531,905 0.2% 19

52,638,241 17.9% 54,315,592 16.5%International


30,176,461 10.2% 30,082,342 9.2%

12/31/201612/31/2015Total Active Accounts:12/31/2012 8,09112/31/2013 8,54212/31/2014 9,17312/31/2015 9,97912/31/2016 11,149

Average AccountBalance per Account:

12/31/2012 $27,20212/31/2013 $31,06112/31/2014 $31,10112/31/2015 $29,54012/31/2016 $29,450

Average Number ofInvestment Optionsper Account:

12/31/2012 5.512/31/2013 5.912/31/2014 6.512/31/2015 7.212/31/2016 7.1

14

Asset Distribution – Combined Continued Small-Cap

Columbia Small Cap Value Fund II Y 0 0.0% - 4,340,109 1.3% 5,014 Columbia Small Cap Value Fund II Z 4,702,695 1.6% 4,915 0 0.0% - Franklin Small Cap Grow th A 2,143,617 0.7% 321 0 0.0% - Franklin Small Cap Grow th R6 0 0.0% - 2,788,633 0.8% 310

6,846,312 2.3% 7,128,742 2.2%M id-Cap

Artisan Mid Cap Inv 10,326,964 3.5% 777 0 0.0% - American Century Mid Cap Value A 17,436,985 5.9% 5,246 0 0.0% - American Century Mid Cap Value R6 0 0.0% - 30,637,291 9.3% 5,981 Baron Grow th Retail 4,395,125 1.5% 1,071 0 0.0% - Artisan Mid Cap Instl 0 0.0% - 8,762,251 2.7% 2,007 Baron Grow th Instl 0 0.0% - 4,398,408 1.3% 2,076

32,159,074 10.9% 43,797,949 13.3%Large-Cap

American Funds Grow th Fund A 16,047,260 5.4% 3,619 0 0.0% 1 American Funds Inv Co Amer A 2,111,057 0.7% 575 0 0.0% - BlackRock Equity Index - Collective F 8,313,057 2.8% 2,314 8,109,934 2.5% 457 Fidelity Contrafund 19,005,497 6.4% 1,114 18,508,802 5.6% 1,179 Pioneer Fundamental Grow th Y 5,481,180 1.9% 4,494 0 0.0% - American Funds Grow th Fund of Amer R6 0 0.0% - 21,517,130 6.6% 6,293 TIAA-CREF Institutional Equity Index 7,708,161 2.6% 2,946 13,799,511 4.2% 5,658 American Funds Invmt Co of America R6 0 0.0% - 5,942,149 1.8% 5,586 Invesco Grow th and Income R6 0 0.0% - 7,175,017 2.2% 5,560 Invesco Grow th and Income Y 8,155,086 2.8% 4,854 0 0.0% - Pioneer Fundamental Grow th K 0 0.0% - 2,966,810 0.9% 1,212 Invesco Grow th & Income A 0 0.0% - 0 0.0% 1

66,821,297 22.7% 78,019,353 23.8%Balanced

Fidelity Puritan 5,441,985 1.8% 2,093 4,000,180 1.2% 427 Janus Balanced Fund T 3,518,179 1.2% 1,896 0 0.0% 1 Janus Balanced N 0 0.0% - 2,347,669 0.7% 344

8,960,164 3.0% 6,347,849 1.9%Bond

JPMorgan High Yield R6 0 0.0% - 3,755,788 1.1% 2,572 JPMorgan High Yield A 2,307,384 0.8% 1,357 0 0.0% - Vanguard Total Bond Market Index Adm 8,628,837 2.9% 4,667 12,380,549 3.8% 5,342

10,936,221 3.7% 16,136,337 4.9%Fixed


294,779,723 100.0% 328,334,170 100.0%

15

$0.0

$7.0

$14.0

$21.0

$28.0

$35.0

12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016457(b) Plan 8.35 10.05 9.67 8.98 10.24401(a) Plan 12.54 14.06 15.37 16.78 19.80

Dol

lar A

mou

nt (i

n M

illion

s)Contribution History

30.04

25.7625.0424.11

20.89

16

Contributions by Asset Class $7.10

$5.14 $5.09 $5.01

$4.49

$1.36 $1.05 $0.82

$-

$2.00

$4.00

$6.00

$8.00

Dolla

r Am

ount

(in

milli

ons)

23.6%

17.1%

16.9%

16.7%

14.9%

4.5% 3.5% 2.7%Large Cap

Fund of Funds

International

Mid Cap

Fixed

Bond

Small Cap

Balanced

17

Percentage of Contributions by Asset Class


1/1/2012 to 12/31/2012 26.6% 16.1% 3.0% 15.4% 13.4% 1.4% 2.6% 21.5%1/1/2013 to 12/31/2013 22.1% 18.3% 3.3% 16.1% 15.7% 1.2% 4.2% 19.1%1/1/2014 to 12/31/2014 19.7% 18.0% 4.5% 15.0% 16.9% 1.8% 4.8% 19.3%1/1/2015 to 12/31/2015 18.8% 19.0% 4.7% 16.5% 19.6% 3.4% 3.9% 14.2%1/1/2016 to 12/31/2016 17.7% 18.3% 3.6% 17.4% 22.6% 2.9% 4.2% 13.4%


1/1/2012 to 12/31/2012 13.8% 13.3% 4.0% 13.6% 18.5% 1.2% 3.2% 32.4%1/1/2013 to 12/31/2013 15.0% 14.8% 3.4% 13.8% 25.6% 1.1% 6.6% 19.7%1/1/2014 to 12/31/2014 13.0% 14.6% 4.5% 14.7% 23.7% 1.7% 5.3% 22.6%1/1/2015 to 12/31/2015 17.0% 16.1% 4.2% 15.2% 23.3% 3.1% 4.4% 16.7%1/1/2016 to 12/31/2016 15.9% 14.4% 3.4% 15.2% 25.6% 2.5% 5.1% 17.9%


1/1/2012 to 12/31/2012 21.5% 15.0% 3.4% 14.7% 15.5% 1.3% 2.8% 25.9%1/1/2013 to 12/31/2013 19.1% 16.8% 3.3% 15.1% 19.9% 1.1% 5.2% 19.4%1/1/2014 to 12/31/2014 17.1% 16.7% 4.5% 14.9% 19.5% 1.7% 5.0% 20.5%1/1/2015 to 12/31/2015 18.2% 18.0% 4.5% 16.0% 20.9% 3.3% 4.0% 15.0%1/1/2016 to 12/31/2016 17.1% 16.9% 3.5% 16.7% 23.6% 2.7% 4.5% 14.9%

Combined

401(a) Plan

457(b) Plan

18

Contributions by Investment Option $0.046$0.035$0.064$0.010$0.010 $1.051$0.261 $0.935$0.233 $1.470$0.020$0.169$0.053$0.068$0.077$0.071$0.095$0.067$0.026$0.007$0.035$0.002$0.018$0.037$0.060$0.140$0.047$0.014$0.013$0.037 $1.669$0.557 $1.434$1.257$0.821$0.037$0.007$0.184$0.017$0.129 $4.186$0.008 $0.467$0.202$0.031$0.005 $0.431 $1.120$0.034 $1.241 $2.195$0.372 $0.975$0.044 $0.651$0.534$0.011$0.271$0.258$0.007 $1.090 $4.486

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00

Maxim Aggressive Profile PortfolioMaxim Moderately Aggressive Profile Port

Maxim Moderate Profile PortfolioMaxim Moderately Conservative Profile

Maxim Conservative Profile PortfolioGreat-West Agg Profile II Fund InstGreat-West Con Profile II Fund Inst

Great-West Mod Agg Profile II Fund InstGreat-West Mod Con Profile II Fund Inst

Great-West Mod Profile II Fund InstAmerican Funds 2015 Trgt Date Retire R6American Funds 2020 Trgt Date Retire R6American Funds 2025 Trgt Date Retire R6American Funds 2030 Trgt Date Retire R6American Funds 2035 Trgt Date Retire R6American Funds 2040 Trgt Date Retire R6American Funds 2045 Trgt Date Retire R6American Funds 2050 Trgt Date Retire R6American Funds 2055 Trgt Date Retire R6American Funds 2060 Target Date Ret R6Great-West SecureFoundation LT 2015 GGreat-West SecureFoundation LT 2020 GGreat-West SecureFoundation LT 2025 GGreat-West SecureFoundation LT 2030 GGreat-West SecureFoundation LT 2035 GGreat-West SecureFoundation LT 2040 GGreat-West SecureFoundation LT 2045 GGreat-West SecureFoundation LT 2050 GGreat-West SecureFoundation LT 2055 G

Artisan International InvDreyfus International Stock Index

Artisan International InstlOppenheimer Developing Markets I

Oppenheimer Global IColumbia Small Cap Value Fund II YColumbia Small Cap Value Fund II Z

Franklin Small Cap Growth AFranklin Small Cap Growth R6

Artisan Mid Cap InvAmerican Century Mid Cap Value A

American Century Mid Cap Value R6Baron Growth RetailArtisan Mid Cap Instl

Baron Growth InstlAmerican Funds Growth Fund AAmerican Funds Inv Co Amer A

BlackRock Equity Index - Collective FFidelity Contrafund

Pioneer Fundamental Growth YAmerican Funds Growth Fund of Amer R6

TIAA-CREF Institutional Equity IndexAmerican Funds Invmt Co of America R6

Invesco Growth and Income R6Invesco Growth and Income Y

Pioneer Fundamental Growth KFidelity Puritan

Janus Balanced Fund TJanus Balanced N

JPMorgan High Yield R6JPMorgan High Yield A

Vanguard Total Bond Market Index AdmGwinnett Stable Value Fund

Dollar Amount (in millions)

19

Contributions by Fund – 401(a) 01 Plan Asset Class/Fund Name

Amount Pct Accts Amount Pct AcctsFund of Funds

Maxim Aggressive Profile Portfolio 714,655 4.3% 237 29,347 0.1% 197 Maxim Moderately Aggressive Profile Port 635,795 3.8% 201 25,218 0.1% 169 Maxim Moderate Profile Portfolio 1,327,822 7.9% 354 51,760 0.3% 299 Maxim Moderately Conservative Profile 200,186 1.2% 84 6,788 0.0% 65 Maxim Conservative Profile Portfolio 172,466 1.0% 68 7,114 0.0% 55 Great-West Agg Profile II Fund Inst 0 0.0% - 666,271 3.4% 300 Great-West Con Profile II Fund Inst 0 0.0% - 182,831 0.9% 91 Great-West Mod Agg Profile II Fund Inst 0 0.0% - 590,927 3.0% 299 Great-West Mod Con Profile II Fund Inst 0 0.0% - 155,926 0.8% 117 Great-West Mod Profile II Fund Inst 0 0.0% - 1,140,792 5.8% 533 American Funds 2015 Trgt Date Retire R6 0 0.0% - 13,727 0.1% 18 American Funds 2020 Trgt Date Retire R6 0 0.0% - 25,692 0.1% 44 American Funds 2025 Trgt Date Retire R6 0 0.0% - 30,899 0.2% 49 American Funds 2030 Trgt Date Retire R6 0 0.0% - 48,236 0.2% 60 American Funds 2035 Trgt Date Retire R6 0 0.0% - 57,592 0.3% 92 American Funds 2040 Trgt Date Retire R6 0 0.0% - 49,054 0.2% 84 American Funds 2045 Trgt Date Retire R6 0 0.0% - 74,773 0.4% 129 American Funds 2050 Trgt Date Retire R6 0 0.0% - 53,831 0.3% 95 American Funds 2055 Trgt Date Retire R6 0 0.0% - 21,738 0.1% 44 American Funds 2060 Target Date Ret R6 0 0.0% - 6,006 0.0% 13 Great-West SecureFoundation LT 2015 G 23,329 0.1% 10 25,320 0.1% 10 Great-West SecureFoundation LT 2020 G 59 0.0% 1 997 0.0% 3 Great-West SecureFoundation LT 2025 G 16,812 0.1% 8 14,617 0.1% 5 Great-West SecureFoundation LT 2030 G 11,595 0.1% 4 19,588 0.1% 9 Great-West SecureFoundation LT 2035 G 30,687 0.2% 8 49,197 0.2% 20 Great-West SecureFoundation LT 2040 G 16,802 0.1% 8 103,082 0.5% 16 Great-West SecureFoundation LT 2045 G 3,400 0.0% 11 34,377 0.2% 24 Great-West SecureFoundation LT 2050 G 1,015 0.0% 3 12,565 0.1% 8 Great-West SecureFoundation LT 2055 G 3,295 0.0% 4 11,251 0.1% 9

3,157,917 18.8% 3,509,513 17.7%International

Artisan International Inv 723,605 4.3% 2,252 25,285 0.1% 1,905 Dreyfus International Stock Index 375,043 2.2% 2,212 1,227,738 6.2% 3,060 Artisan International Instl 0 0.0% - 362,592 1.8% 2,946 Oppenheimer Developing Markets I 0 0.0% - 1,042,117 5.3% 3,063 Oppenheimer Global I 0 0.0% - 860,112 4.3% 3,183 Oppenheimer Developing Markets Y 913,705 5.4% 2,241 37,123 0.2% 1,924 Oppenheimer Global Y 1,180,797 7.0% 2,317 58,706 0.3% 1,994

3,193,149 19.0% 3,613,673 18.3%

1/1/2016 to 12/31/20161/1/2015 to 12/31/2015Contributing Participants:

12/31/2012 2,66312/31/2013 2,82512/31/2014 3,03712/31/2015 3,37312/31/2016 3,568

12/31/2012 $4,70812/31/2013 $4,97812/31/2014 $5,06112/31/2015 $4,97512/31/2016 $5,549

12/31/2012 9.112/31/2013 9.012/31/2014 10.712/31/2015 11.012/31/2016 18.0

Average Number of Investment Options per Participant:

Average Contribution per Participant:

20

Contributions by Fund – 401(a) 01 Plan Continued


786,148 4.7% 703,438 3.6%M id-Cap

Artisan Mid Cap Inv 196,331 1.2% 222 7,616 0.0% 128 American Century Mid Cap Value A 2,455,479 14.6% 2,285 92,847 0.5% 1,971 American Century Mid Cap Value R6 0 0.0% - 3,020,536 15.3% 3,176 Nuveen Tradew inds Value Opportunities I 3,163 0.0% 27 0 0.0% - Baron Grow th Retail 107,830 0.6% 573 4,124 0.0% 406 Artisan Mid Cap Instl 0 0.0% - 224,026 1.1% 724 Baron Grow th Instl 0 0.0% - 102,467 0.5% 900

2,762,803 16.5% 3,451,616 17.4%Large-Cap

American Funds Grow th Fund A 487,067 2.9% 2,150 16,092 0.1% 1,276 American Funds Inv Co Amer A 1,101,501 6.6% 2,004 2,715 0.0% 122 BlackRock Equity Index - Collective F 374,816 2.2% 1,805 260,676 1.3% 788 Fidelity Contrafund 422,253 2.5% 205 570,955 2.9% 301 Pioneer Fundamental Grow th Y 338,593 2.0% 1,884 24,290 0.1% 1,815 American Funds Grow th Fund of Amer R6 0 0.0% - 717,487 3.6% 3,065 TIAA-CREF Institutional Equity Index 272,337 1.6% 1,633 1,534,722 7.8% 2,955 American Funds Invmt Co of America R6 0 0.0% - 238,738 1.2% 2,432 Invesco Grow th and Income R6 0 0.0% - 642,111 3.2% 2,994 Invesco Grow th and Income Y 284,254 1.7% 2,040 29,520 0.1% 1,848 Pioneer Fundamental Grow th K 0 0.0% - 436,461 2.2% 2,906

3,280,821 19.6% 4,473,768 22.6%Balanced

Fidelity Puritan 262,309 1.6% 819 354,719 1.8% 1,118 Janus Balanced Fund T 314,528 1.9% 906 7,473 0.0% 566 Janus Balanced N 0 0.0% - 202,228 1.0% 1,091

576,837 3.4% 564,420 2.9%Bond

JPMorgan High Yield R6 0 0.0% - 159,500 0.8% 1,383 PIMCO Total Return Admin 35,769 0.2% 1,738 0 0.0% - JPMorgan High Yield A 118,835 0.7% 494 4,587 0.0% 421 Vanguard Total Bond Market Index Adm 492,832 2.9% 1,982 664,382 3.4% 2,073

647,437 3.9% 828,469 4.2%Fixed


16,780,582 100.0% 19,799,498 100.0%

21

Contributions by Fund – 457(b) 03 Plan


Fund of FundsMaxim Aggressive Profile Portfolio 502,751 5.6% 342 17,060 0.2% 280 Maxim Moderately Aggressive Profile Port 345,443 3.8% 265 10,276 0.1% 208 Maxim Moderate Profile Portfolio 424,842 4.7% 287 12,364 0.1% 236 Maxim Moderately Conservative Profile 103,348 1.2% 101 3,303 0.0% 78 Maxim Conservative Profile Portfolio 92,766 1.0% 84 2,767 0.0% 71 Great-West Agg Profile II Fund Inst 0 0.0% - 385,185 3.8% 443 Great-West Con Profile II Fund Inst 0 0.0% - 78,320 0.8% 121 Great-West Mod Agg Profile II Fund Inst 0 0.0% - 344,526 3.4% 366 Great-West Mod Con Profile II Fund Inst 0 0.0% - 76,917 0.8% 132 Great-West Mod Profile II Fund Inst 0 0.0% - 329,611 3.2% 388 American Funds 2015 Trgt Date Retire R6 0 0.0% - 5,877 0.1% 23 American Funds 2020 Trgt Date Retire R6 0 0.0% - 143,794 1.4% 43 American Funds 2025 Trgt Date Retire R6 0 0.0% - 21,870 0.2% 72 American Funds 2030 Trgt Date Retire R6 0 0.0% - 20,059 0.2% 100 American Funds 2035 Trgt Date Retire R6 0 0.0% - 19,680 0.2% 114 American Funds 2040 Trgt Date Retire R6 0 0.0% - 22,179 0.2% 110 American Funds 2045 Trgt Date Retire R6 0 0.0% - 20,173 0.2% 114 American Funds 2050 Trgt Date Retire R6 0 0.0% - 12,730 0.1% 77 American Funds 2055 Trgt Date Retire R6 0 0.0% - 4,286 0.0% 36 American Funds 2060 Target Date Ret R6 0 0.0% - 1,438 0.0% 13 Great-West SecureFoundation LT 2015 G 7,631 0.1% 7 9,211 0.1% 9 Great-West SecureFoundation LT 2020 G 1,344 0.0% 4 874 0.0% 5 Great-West SecureFoundation LT 2025 G 6,283 0.1% 10 3,384 0.0% 8 Great-West SecureFoundation LT 2030 G 17,147 0.2% 6 17,306 0.2% 12 Great-West SecureFoundation LT 2035 G 13,420 0.1% 7 10,850 0.1% 20 Great-West SecureFoundation LT 2040 G 6,776 0.1% 8 37,390 0.4% 15 Great-West SecureFoundation LT 2045 G 2,902 0.0% 11 12,453 0.1% 22 Great-West SecureFoundation LT 2050 G 1,825 0.0% 3 1,415 0.0% 6 Great-West SecureFoundation LT 2055 G 90 0.0% 2 1,633 0.0% 5

1,526,568 17.0% 1,626,931 15.9%International

Artisan International Inv 332,908 3.7% 2,228 11,249 0.1% 1,905 Dreyfus International Stock Index 171,377 1.9% 2,147 441,445 4.3% 3,104 Artisan International Instl 0 0.0% - 194,150 1.9% 2,999 Oppenheimer Developing Markets I 0 0.0% - 391,408 3.8% 3,116 Oppenheimer Global I 0 0.0% - 396,497 3.9% 3,309 Oppenheimer Developing Markets Y 408,557 4.5% 2,208 14,895 0.1% 1,916 Oppenheimer Global Y 531,558 5.9% 2,322 24,138 0.2% 2,020

1,444,399 16.1% 1,473,782 14.4%

1/1/2016 to 12/31/20161/1/2015 to 12/31/2015Contributing Participants:12/31/2012 3,34512/31/2013 3,46612/31/2014 3,67312/31/2015 3,91112/31/2016 4,125

12/31/2012 $2,49712/31/2013 $2,89912/31/2014 $2,63212/31/2015 $2,29712/31/2016 $2,482

12/31/2012 7.712/31/2013 7.712/31/2014 9.112/31/2015 9.712/31/2016 16.6

Average Number of Investment Options per Participant:

Average Annual Contributions per Participant:

22

Contributions by Fund – 457(b) 03 Plan Continued


379,093 4.2% 344,843 3.4%M id-Cap

Artisan Mid Cap Inv 240,484 2.7% 401 8,915 0.1% 290 American Century Mid Cap Value A 1,024,826 11.4% 2,304 35,862 0.4% 2,007 American Century Mid Cap Value R6 0 0.0% - 1,165,693 11.4% 3,335 Nuveen Tradew inds Value Opportunities I 4,730 0.1% 49 0 0.0% - Baron Grow th Retail 94,081 1.0% 636 3,785 0.0% 501 Artisan Mid Cap Instl 0 0.0% - 243,266 2.4% 1,067 Baron Grow th Instl 0 0.0% - 99,312 1.0% 1,070

1,364,121 15.2% 1,556,833 15.2%Large-Cap

American Funds Grow th Fund A 423,168 4.7% 2,303 15,274 0.1% 1,473 American Funds Inv Co Amer A 461,812 5.1% 1,950 2,599 0.0% 150 BlackRock Equity Index - Collective F 199,627 2.2% 1,836 170,014 1.7% 967 Fidelity Contrafund 398,891 4.4% 457 548,582 5.4% 874 Pioneer Fundamental Grow th Y 166,160 1.8% 1,850 10,203 0.1% 1,789 American Funds Grow th Fund of Amer R6 0 0.0% - 523,073 5.1% 3,627 TIAA-CREF Institutional Equity Index 219,219 2.4% 1,588 660,193 6.4% 3,012 American Funds Invmt Co of America R6 0 0.0% - 133,292 1.3% 2,427 Invesco Grow th and Income R6 0 0.0% - 332,669 3.2% 3,139 Invesco Grow th and Income Y 228,268 2.5% 2,053 14,137 0.1% 1,872 Pioneer Fundamental Grow th K 0 0.0% - 214,099 2.1% 2,943

2,097,144 23.3% 2,624,136 25.6%Balanced

Fidelity Puritan 148,962 1.7% 868 179,197 1.8% 1,235 Janus Balanced Fund T 125,839 1.4% 917 3,188 0.0% 580 Janus Balanced N 0 0.0% - 69,252 0.7% 1,117

274,801 3.1% 251,637 2.5%Bond

JPMorgan High Yield R6 0 0.0% - 98,775 1.0% 1,436 PIMCO Total Return Admin 16,093 0.2% 1,662 0 0.0% - JPMorgan High Yield A 68,995 0.8% 511 2,893 0.0% 429 Vanguard Total Bond Market Index Adm 310,583 3.5% 1,947 425,377 4.2% 2,172

395,671 4.4% 527,045 5.1%Fixed


8,981,698 100.0% 10,236,728 100.0%

23

Contributions by Fund – Combined


Fund of FundsMaxim Aggressive Profile Portfolio 1,217,406 4.7% 579 46,407 0.2% 477 Maxim Moderately Aggressive Profile Port 981,238 3.8% 466 35,494 0.1% 377 Maxim Moderate Profile Portfolio 1,752,664 6.8% 641 64,124 0.2% 535 Maxim Moderately Conservative Profile 303,534 1.2% 185 10,091 0.0% 143 Maxim Conservative Profile Portfolio 265,232 1.0% 152 9,881 0.0% 126 Great-West Agg Profile II Fund Inst 0 0.0% - 1,051,457 3.5% 743 Great-West Con Profile II Fund Inst 0 0.0% - 261,150 0.9% 212 Great-West Mod Agg Profile II Fund Inst 0 0.0% - 935,453 3.1% 665 Great-West Mod Con Profile II Fund Inst 0 0.0% - 232,843 0.8% 249 Great-West Mod Profile II Fund Inst 0 0.0% - 1,470,403 4.9% 921 American Funds 2015 Trgt Date Retire R6 0 0.0% - 19,603 0.1% 41 American Funds 2020 Trgt Date Retire R6 0 0.0% - 169,486 0.6% 87 American Funds 2025 Trgt Date Retire R6 0 0.0% - 52,768 0.2% 121 American Funds 2030 Trgt Date Retire R6 0 0.0% - 68,295 0.2% 160 American Funds 2035 Trgt Date Retire R6 0 0.0% - 77,272 0.3% 206 American Funds 2040 Trgt Date Retire R6 0 0.0% - 71,233 0.2% 194 American Funds 2045 Trgt Date Retire R6 0 0.0% - 94,946 0.3% 243 American Funds 2050 Trgt Date Retire R6 0 0.0% - 66,562 0.2% 172 American Funds 2055 Trgt Date Retire R6 0 0.0% - 26,023 0.1% 80 American Funds 2060 Target Date Ret R6 0 0.0% - 7,444 0.0% 26 Great-West SecureFoundation LT 2015 G 30,960 0.1% 17 34,531 0.1% 19 Great-West SecureFoundation LT 2020 G 1,404 0.0% 5 1,871 0.0% 8 Great-West SecureFoundation LT 2025 G 23,095 0.1% 18 18,000 0.1% 13 Great-West SecureFoundation LT 2030 G 28,742 0.1% 10 36,894 0.1% 21 Great-West SecureFoundation LT 2035 G 44,107 0.2% 15 60,047 0.2% 40 Great-West SecureFoundation LT 2040 G 23,579 0.1% 16 140,473 0.5% 31 Great-West SecureFoundation LT 2045 G 6,302 0.0% 22 46,830 0.2% 46 Great-West SecureFoundation LT 2050 G 2,839 0.0% 6 13,980 0.0% 14 Great-West SecureFoundation LT 2055 G 3,385 0.0% 6 12,884 0.0% 14

4,684,485 18.2% 5,136,444 17.1%International

Artisan International Inv 1,056,513 4.1% 4,480 36,534 0.1% 3,810 Dreyfus International Stock Index 546,419 2.1% 4,359 1,669,183 5.6% 6,164 Artisan International Instl 0 0.0% - 556,743 1.9% 5,945 Oppenheimer Developing Markets I 0 0.0% - 1,433,525 4.8% 6,179 Oppenheimer Global I 0 0.0% - 1,256,609 4.2% 6,492 Oppenheimer Developing Markets Y 1,322,261 5.1% 4,449 52,019 0.2% 3,840 Oppenheimer Global Y 1,712,355 6.6% 4,639 82,844 0.3% 4,014

4,637,548 18.0% 5,087,455 16.9%

1/1/2016 to 12/31/20161/1/2015 to 12/31/2015Total AccountsReceiving Contributions:

12/31/2012 6,00812/31/2013 6,29112/31/2014 6,71012/31/2015 7,28412/31/2016 7,693

12/31/2012 $3,47712/31/2013 $3,83312/31/2014 $3,73112/31/2015 $3,53712/31/2016 $3,904

12/31/2012 8.312/31/2013 8.312/31/2014 9.912/31/2015 10.312/31/2016 17.3

Average Number of Investment Options per Account:

Average Contributions per Account:

24

Contributions by Fund – Combined Continued


1,165,241 4.5% 1,048,281 3.5%M id-Cap

Artisan Mid Cap Inv 436,815 1.7% 623 16,531 0.1% 418 American Century Mid Cap Value A 3,480,304 13.5% 4,589 128,709 0.4% 3,978 American Century Mid Cap Value R6 0 0.0% - 4,186,229 13.9% 6,511 Nuveen Tradew inds Value Opportunities I 7,893 0.0% 76 0 0.0% - Baron Grow th Retail 201,911 0.8% 1,209 7,909 0.0% 907 Artisan Mid Cap Instl 0 0.0% - 467,292 1.6% 1,791 Baron Grow th Instl 0 0.0% - 201,779 0.7% 1,970

4,126,924 16.0% 5,008,449 16.7%Large-Cap

American Funds Grow th Fund A 910,235 3.5% 4,453 31,366 0.1% 2,749 American Funds Inv Co Amer A 1,563,313 6.1% 3,954 5,313 0.0% 272 BlackRock Equity Index - Collective F 574,443 2.2% 3,641 430,690 1.4% 1,755 Fidelity Contrafund 821,144 3.2% 662 1,119,537 3.7% 1,175 Pioneer Fundamental Grow th Y 504,754 2.0% 3,734 34,494 0.1% 3,604 American Funds Grow th Fund of Amer R6 0 0.0% - 1,240,560 4.1% 6,692 TIAA-CREF Institutional Equity Index 491,556 1.9% 3,221 2,194,916 7.3% 5,967 American Funds Invmt Co of America R6 0 0.0% - 372,030 1.2% 4,859 Invesco Grow th and Income R6 0 0.0% - 974,780 3.2% 6,133 Invesco Grow th and Income Y 512,521 2.0% 4,093 43,657 0.1% 3,720 Pioneer Fundamental Grow th K 0 0.0% - 650,560 2.2% 5,849

5,377,966 20.9% 7,097,903 23.6%Balanced

Fidelity Puritan 411,271 1.6% 1,687 533,917 1.8% 2,353 Janus Balanced Fund T 440,367 1.7% 1,823 10,661 0.0% 1,146 Janus Balanced N 0 0.0% - 271,480 0.9% 2,208

851,638 3.3% 816,057 2.7%Bond

JPMorgan High Yield R6 0 0.0% - 258,276 0.9% 2,819 PIMCO Total Return Admin 51,862 0.2% 3,400 0 0.0% - JPMorgan High Yield A 187,830 0.7% 1,005 7,480 0.0% 850 Vanguard Total Bond Market Index Adm 803,415 3.1% 3,929 1,089,759 3.6% 4,245

1,043,108 4.0% 1,355,514 4.5%Fixed


25,762,280 100.0% 30,036,226 100.0%

25

0

3,000

6,000

9,000

12,000

12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016457(b) Plan 4,769 4,971 5,307 5,678 6,274401(a) Plan 3,322 3,571 3,866 4,301 4,875

Plan Participation

11,149

9,9799,1738,542

8,091

26

Benefit Payment Distribution – 401(a) 01 Plan


Death 155,291 1.7% 4 10,672 0.1% 5Retirement 19,011 0.2% 1 230,588 2.9% 8Separation of Service 7,239,545 77.7% 287 6,061,328 76.6% 533Total Full Withdrawals: 7,413,847 79.6% 292 6,302,588 79.6% 546

Partial WithdrawalsINSERVROMT 0 0.0% 0 644 0.0% 1In Service 12,169 0.1% 1 7,169 0.1% 1Minimum Distribution 2,022 0.0% 4 0 0.0% 0Retirement 62,391 0.7% 4 210,713 2.7% 10Separation of Service 1,237,034 13.3% 59 842,634 10.6% 41Total Partial Withdrawals: 1,313,615 14.1% 68 1,061,159 13.4% 53

Periodic PaymentsBenefit Payment 2,400 0.0% 1 0 0.0% 0Minimum Distribution 40,188 0.4% 10 45,495 0.6% 11Retirement 475,869 5.1% 20 435,850 5.5% 19Separation of Service 72,000 0.8% 1 72,000 0.9% 1Total Periodic Payments: 590,457 6.3% 32 553,345 7.0% 31

9,317,919 100.0% 392 7,917,091 100.0% 630

1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

27

Benefit Payment Distribution – 457(b) 03 Plan


Benefit Payment 484 0.0% 1 0 0.0% 0Death 373,867 3.9% 8 209,711 2.1% 15Retirement 714,355 7.4% 9 1,629,551 16.3% 46Separation of Service 3,699,867 38.2% 291 2,821,064 28.2% 557Total Full Withdrawals: 4,788,572 49.5% 309 4,660,326 46.5% 618

Partial WithdrawalsINSERVROMT 307,412 3.2% 11 56,296 0.6% 8Death 62,951 0.7% 3 86,057 0.9% 5Hardship 58,307 0.6% 18 55,050 0.5% 14Loan 1,866,019 19.3% 293 2,112,755 21.1% 298Minimum Distribution 14,922 0.2% 10 7,392 0.1% 5Retirement 89,425 0.9% 10 1,185,434 11.8% 38Separation of Service 1,781,532 18.4% 91 1,267,091 12.7% 75Service Credit 22,093 0.2% 6 11,682 0.1% 4Total Partial Withdrawals: 4,202,661 43.4% 442 4,781,757 47.8% 447

Periodic PaymentsBenefit Payment 33,235 0.3% 4 27,678 0.3% 3Minimum Distribution 199,030 2.1% 69 229,663 2.3% 79Retirement 435,476 4.5% 45 299,769 3.0% 46Separation of Service 15,400 0.2% 3 13,000 0.1% 2Total Periodic Payments: 683,141 7.1% 121 570,110 5.7% 130

9,674,374 100.0% 872 10,012,192 100.0% 1,195

1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

28

Benefit Payment Distribution – Combined


Benefit Payment 484 0.0% 1 0 0.0% 0Death 529,158 2.8% 12 220,382 1.2% 20Retirement 733,366 3.9% 10 1,860,139 10.4% 54Separation of Service 10,939,411 57.6% 578 8,882,392 49.5% 1,090Total Full Withdrawals: 12,202,419 64.2% 601 10,962,914 61.1% 1,164

Partial WithdrawalsINSERVROMT 307,412 1.6% 11 56,939 0.3% 9Death 62,951 0.3% 3 86,057 0.5% 5Hardship 58,307 0.3% 18 55,050 0.3% 14In Service 12,169 0.1% 1 7,169 0.0% 1Loan 1,866,019 9.8% 293 2,112,755 11.8% 298Minimum Distribution 16,944 0.1% 14 7,392 0.0% 5Retirement 151,816 0.8% 14 1,396,147 7.8% 48Separation of Service 3,018,566 15.9% 150 2,109,725 11.8% 116Service Credit 22,093 0.1% 6 11,682 0.1% 4Total Partial Withdrawals: 5,516,277 29.0% 510 5,842,916 32.6% 500

Periodic PaymentsBenefit Payment 35,635 0.2% 5 27,678 0.2% 3Minimum Distribution 239,218 1.3% 79 275,157 1.5% 90Retirement 911,345 4.8% 65 735,619 4.1% 65Separation of Service 87,400 0.5% 4 85,000 0.5% 3Total Periodic Payments: 1,273,598 6.7% 153 1,123,454 6.3% 161

18,992,294 100.0% 1,264 17,929,284 100.0% 1,825

1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

29

KeyTalk® Statistics – 401(a) 01 Plan

Category Total Pct Total PctChange Passcode 610 96.2% 706 96.3%Inq Acct Bal 15 2.4% 22 3.0%Inq Alloc 6 0.9% 3 0.4%Inq Tran Hist 3 0.5% 2 0.3%

GRAND TOTAL 634 100.0% 733 100.0%

Total Calls 1,902 1,943 Rolled to Customer Service 1,302 1,357 Pct Transferred to CSR 68.5% 69.8%

Plan Totals1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

30

KeyTalk® Statistics – 457(b) 03 Plan

Category Total Pct Total PctChange Passcode 944 76.9% 1,206 82.2%Deferral 11 0.9% 20 1.4%Inq Acct Bal 19 1.5% 21 1.4%Inq Alloc 2 0.2% 1 0.1%Inq Loan 192 15.6% 183 12.5%Inq Tran Hist 10 0.8% 5 0.3%Inq Uval 1 0.1% - 0.0%Loan Request 49 4.0% 31 2.1%

GRAND TOTAL 1,228 100.0% 1,467 100.0%


Plan Totals1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

31

KeyTalk® Statistics – Combined

Category Total Pct Total PctChange Passcode 1,554 83.5% 1,912 86.9%Deferral 11 0.6% 20 0.9%Inq Acct Bal 34 1.8% 43 2.0%Inq Alloc 8 0.4% 4 0.2%Inq Loan 192 10.3% 183 8.3%Inq Tran Hist 13 0.7% 7 0.3%Inq Uval 1 0.1% - 0.0%Loan Request 49 2.6% 31 1.4%

GRAND TOTAL 1,862 100.0% 2,200 100.0%


Plan Totals1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

32

Internet Statistics – 401(a) 01 Plan

Category Total Pct Total PctAccount And Certificates Overview 13,928 22.1% 16,921 23.5%Allocation And Asset Allocation 1,379 2.2% 1,458 2.0%Disbursement Summary 2,161 3.4% 2,368 3.3%Fund Overview And Prospectus 1,356 2.2% 1,589 2.2%Inq Acct Bal 437 0.7% 472 0.7%Inq Acct Sum 2 0.0% - 0.0%Inq Alloc 1 0.0% - 0.0%Inq Asset Alloc 60 0.1% 47 0.1%Inq Asset Alloc Comparison 108 0.2% 82 0.1%Inq Bal Comparison 503 0.8% 604 0.8%Inq Bal History 1,720 2.7% 2,036 2.8%Inq Bene 772 1.2% 930 1.3%Inq Fund Overview 424 0.7% 472 0.7%Inq Fund Prospectus 134 0.2% 313 0.4%Inq Fund Returns 802 1.3% 1,067 1.5%Inq Funds Trnd 774 1.2% 813 1.1%Inq Managed Account-Ibbotson 33 0.1% 68 0.1%Inq Multi Acct Bal 2,603 4.1% 2,821 3.9%Inq O/L Forms 549 0.9% 687 1.0%Inq Per Rate Return 2,857 4.5% 3,369 4.7%Inq Rates 158 0.3% 164 0.2%Inq Stmt On Demand 4 0.0% - 0.0%Inq Tran Hist 18,061 28.6% 19,352 26.9%Inq Trfs - Comp/Pend/Perd 833 1.3% - 0.0%Inq Uval 1,167 1.9% 1,398 1.9%Inquire Address 1,189 1.9% 1,288 1.8%Learn About Managed Accounts 141 0.2% 223 0.3%Managed Account Enrollment 170 0.3% 236 0.3%Managed Account Link 272 0.4% 393 0.5%Ricp Current Projection 1,458 2.3% 1,881 2.6%Ricp Future Withdrawal 152 0.2% 240 0.3%Ricp Save 583 0.9% 782 1.1%Statement On Demand And Quarterly 2,764 4.4% 3,272 4.5%Transaction Downloads 134 0.2% 550 0.8%Address Change 49 0.1% 46 0.1%Allocation 260 0.4% 261 0.4%Beneficiaries 222 0.4% 264 0.4%Change Passcode 955 1.5% 1,006 1.4%Elec Filing Cabinet 407 0.6% 330 0.5%Email Address 1,035 1.6% 1,906 2.6%Fund To Fund Trf 216 0.3% 160 0.2%Indic Data 349 0.6% 433 0.6%Order Passcode 495 0.8% 466 0.6%Rebalancer 120 0.2% 86 0.1%Registration 1,182 1.9% 1,039 1.4%Trf From Sda 25 0.0% 33 0.0%Trf To Sda 39 0.1% 34 0.0%

GRAND TOTAL 63,043 100.0% 71,960 100.0%

Number of Successful log ins 27,914 31,232

Plan Totals1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

33

Internet Statistics – 457(b) 03 Plan

Category Total Pct Total PctAccount And Certificates Overview 19,749 21.3% 23,733 23.3%Allocation And Asset Allocation 2,464 2.7% 2,156 2.1%Disbursement Summary 2,392 2.6% 2,498 2.5%Fund Overview And Prospectus 2,109 2.3% 2,538 2.5%Inq Acct Bal 1,159 1.2% 1,673 1.6%Inq Acct Sum 4 0.0% - 0.0%Inq Asset Alloc 126 0.1% 126 0.1%Inq Asset Alloc Comparison 275 0.3% 268 0.3%Inq Bal Comparison 1,182 1.3% 1,338 1.3%Inq Bal History 3,349 3.6% 3,355 3.3%Inq Bene 1,102 1.2% 1,434 1.4%Inq Fund Overview 698 0.8% 561 0.6%Inq Fund Prospectus 208 0.2% 516 0.5%Inq Fund Returns 1,707 1.8% 1,914 1.9%Inq Funds Trnd 1,822 2.0% 1,852 1.8%Inq Managed Account-Ibbotson 75 0.1% 83 0.1%Inq Multi Acct Bal 1,640 1.8% 1,789 1.8%Inq O/L Forms 632 0.7% 584 0.6%Inq Per Rate Return 5,305 5.7% 5,456 5.4%Inq Rates 345 0.4% 413 0.4%Inq Stmt On Demand 6 0.0% - 0.0%Inq Tran Hist 23,197 25.0% 26,585 26.1%Inq Trfs - Comp/Pend/Perd 1,524 1.6% 3 0.0%Inq Uval 2,419 2.6% 2,211 2.2%Inquire Address 1,169 1.3% 1,279 1.3%Learn About Managed Accounts 294 0.3% 248 0.2%Managed Account Enrollment 231 0.2% 273 0.3%Managed Account Link 193 0.2% 310 0.3%Ricp Current Projection 2,925 3.2% 3,152 3.1%Ricp Future Withdrawal 359 0.4% 341 0.3%Ricp Save 1,152 1.2% 736 0.7%Statement On Demand And Quarterly 5,353 5.8% 6,169 6.1%Transaction Downloads 1,070 1.2% 1,520 1.5%Address Change 39 0.0% 30 0.0%Allocation 447 0.5% 471 0.5%Beneficiaries 325 0.4% 393 0.4%Change Passcode 1,555 1.7% 1,657 1.6%Elec Filing Cabinet 418 0.5% 305 0.3%Email Address 1,050 1.1% 1,813 1.8%Fund To Fund Trf 430 0.5% 349 0.3%Indic Data 453 0.5% 470 0.5%Order Passcode 281 0.3% 224 0.2%Rebalancer 205 0.2% 159 0.2%Registration 1,269 1.4% 886 0.9%Trf From Sda 7 0.0% 7 0.0%Trf To Sda 31 0.0% 39 0.0%

GRAND TOTAL 92,745 100.0% 101,917 100.0%


Plan Totals1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

34

Internet Statistics – Combined

Category Total Pct Total PctAccount And Certificates Overview 33,677 21.6% 40,654 23.4%Allocation And Asset Allocation 3,843 2.5% 3,614 2.1%Disbursement Summary 4,553 2.9% 4,866 2.8%Fund Overview And Prospectus 3,465 2.2% 4,127 2.4%Inq Acct Bal 1,596 1.0% 2,145 1.2%Inq Acct Sum 6 0.0% - 0.0%Inq Alloc 1 0.0% - 0.0%Inq Asset Alloc 186 0.1% 173 0.1%Inq Asset Alloc Comparison 383 0.2% 350 0.2%Inq Bal Comparison 1,685 1.1% 1,942 1.1%Inq Bal History 5,069 3.3% 5,391 3.1%Inq Bene 1,874 1.2% 2,364 1.4%Inq Fund Overview 1,122 0.7% 1,033 0.6%Inq Fund Prospectus 342 0.2% 829 0.5%Inq Fund Returns 2,509 1.6% 2,981 1.7%Inq Funds Trnd 2,596 1.7% 2,665 1.5%Inq Managed Account-Ibbotson 108 0.1% 151 0.1%Inq Multi Acct Bal 4,243 2.7% 4,610 2.7%Inq O/L Forms 1,181 0.8% 1,271 0.7%Inq Per Rate Return 8,162 5.2% 8,825 5.1%Inq Rates 503 0.3% 577 0.3%Inq Stmt On Demand 10 0.0% - 0.0%Inq Tran Hist 41,258 26.5% 45,937 26.4%Inq Trfs - Comp/Pend/Perd 2,357 1.5% 3 0.0%Inq Uval 3,586 2.3% 3,609 2.1%Inquire Address 2,358 1.5% 2,567 1.5%Learn About Managed Accounts 435 0.3% 471 0.3%Managed Account Enrollment 401 0.3% 509 0.3%Managed Account Link 465 0.3% 703 0.4%Ricp Current Projection 4,383 2.8% 5,033 2.9%Ricp Future Withdrawal 511 0.3% 581 0.3%Ricp Save 1,735 1.1% 1,518 0.9%Statement On Demand And Quarterly 8,117 5.2% 9,441 5.4%Transaction Downloads 1,204 0.8% 2,070 1.2%Address Change 88 0.1% 76 0.0%Allocation 707 0.5% 732 0.4%Beneficiaries 547 0.4% 657 0.4%Change Passcode 2,510 1.6% 2,663 1.5%Elec Filing Cabinet 825 0.5% 635 0.4%Email Address 2,085 1.3% 3,719 2.1%Fund To Fund Trf 646 0.4% 509 0.3%Indic Data 802 0.5% 903 0.5%Order Passcode 776 0.5% 690 0.4%Rebalancer 325 0.2% 245 0.1%Registration 2,451 1.6% 1,925 1.1%Trf From Sda 32 0.0% 40 0.0%Trf To Sda 70 0.0% 73 0.0%

GRAND TOTAL 155,788 100.0% 173,877 100.0%


Plan Totals1/1/2015 to 12/31/2015 1/1/2016 to 12/31/2016

35

Recordkeeping - Participant History

Great-West continues to grow as a force in the Record keeping marketplace. We do record keeping in the 457(b), 401(a/k), 403(b), 408 markets as well as in the Institutional and Defined Benefit plan markets. The table below shows our participant growth as a record keeper in these markets

•12/31/2015 7,583,275

•12/31/2014 7,118,120

•12/31/2013 4,864,351

•12/31/2012 4,656,306

•12/31/2011 4,438,513

•12/31/2010 4,409,418

•12/31/2009 4,200,735

•12/31/2008 3,739,464

•12/31/2007 3,477,918

•12/31/2006 3,413,562

•12/31/2005 2,766,641

•12/31/2004 2,510,681

•12/31/2003 2,351,450

36

Recordkeeping Services

37

Government Relationships

Great-West has one of the strongest track records in the industry on renewing existing client relationships and adding new client relationships. Attached is a list of just a few of those recently renewed or new relationships we have formed. Renewed Relationships: •State of New Hampshire •State of Alaska •State of Tennessee •New Jersey Transit

New Relationships: •State of Kansas •State of Idaho •State of Minnesota •City of Tallahassee

38

Current Ratings

These are current ratings for Great-West Life & Annuity Insurance Company. These ratings are subject to change. These ratings do not pertain to the investment performance of the underlying fund, other insurance affiliates or subsidiaries, or non-insurance affiliates or subsidiaries of the company.

Rating Rating Service Current Rating Outlook

A+ A.M. Best Company, Inc.-Financial Strength

SuperiorHighest of ten categories

Stable

AA Standard & Poor's Ratings Services-Financial Strength

Very StrongSecond highest of nine categories

Stable

AA Fitch Ratings-Financial Strength

Very StrongSecond highest of nine categories

Stable

Aa3 Moody's Investors Service-Financial Strength

ExcellentSecond highest of nine categories

Stable

39

Five Year Financial Rating History

Fitch Moody’s S&P A.M. Best

2015 AA Aa3 AA A+

2014 AA Aa3 AA A+

2013 AA Aa3 AA A+

2012 AA Aa3 AA A+

2011 AA+ Aa3 AA A+

40

DISCLOSURES

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

GWFS Equities, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Great-West Life & Annuity Insurance Company. Empower Retirement refers to the products and services offered in the retirement markets by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York, Home Office: White Plains, NY; and their subsidiaries and affiliates. The trademarks, logos, service marks, and design elements used are owned by their respective owners and are used by permission.

Fund Inception Date: November 2002Fund Investment Manager: Great West Life & Annuity Insurance Company

GwinnettStable Value Fund

Quarterly Report

CSVFSTMT13For Plan Sponsor use only - Not for use with Plan Participants

Confidential - Do not disclose or disseminate

Fund Investment Manager: Great-West Life & Annuity Insurance CompanyInvestment Policy Statement: Government & Corporate

December 31, 2016

Great-West FinancialSM refers to products and services provided by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO; Great-West Life & Annuity Insurance Company of New York (GWL&A of NY), Home Office: White Plains, NY; its subsidiaries and affiliates including Great-West Capital Management, LLC. The trademarks, logos, service marks, and design elements used are owned by GWL&A. ©2013 Great-West Life & Annuity Insurance Company. All rights reserved. 11/2013 PT187353

Core securities, when offered, are offered through GWFS Equities, Inc. and/or other broker dealers. GWFS Equities, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Great-West Life & Annuity Insurance Company.

CSVFSTMT13For Plan Sponsor use only - Not for use with Plan Participants


Fees and Expenses

12/31/16 9/30/16 Investment Management Fee 0.20%Number of Long Term Holdings 257 243 Participant Book Value Guarantee (Wrap) Fee 0.20%Market Value of Assets $88.92 MM $86.93 MM Fee Paid to Plan Account 0.00%Book Value Liabilities (participant account balances) $89.37 MM $85.49 MM Total Fees 0.40%Market Value of Assets to Book Value of Liabilities 99.5% 101.7%Average Life 4.1 Years 3.7 YearsAverage Duration 3.4 Years 2.8 YearsCredited Rate 1.75% 4Q 2016 1.80% 3Q 2016Next Quarter Credited Rate 1.75% 1Q 2017

Average Rating (S&P / Moody's / Fitch)

Fund Allocation(in millions)

Market Value

% of Portfolio

Market Value

% of Portfolio

AA+/AAA/AAA

Gwinnett Stable Value FundQuarterly Statement as of

December 31, 2016

AA/AAA/AAA

12/31/16 9/30/16

Fund Characteristics

Agency

Asset Backed Securities

2%

Corporate Bonds12%

Cash2%

Agency MBS 43.36$ 48.8% 46.43$ 53.4%Agency CMO 10.35$ 11.6% 9.97$ 11.5%Agency CMBS 19.83$ 22.3% 20.94$ 24.1%Agency Securities 1.30$ 1.5% 1.35$ 1.6%Asset Backed Securities 2.05$ 2.3% 2.39$ 2.8%Corporate Bonds 10.36$ 11.7% 4.06$ 4.7%Total Market Value of Long Term Holdings 87.25$ 98.1% 85.15$ 98.0%Cash, Short Term & Other 1.67$ 1.9% 1.78$ 2.0%Total Market Value of Assets 88.92$ 100.0% 86.93$ 100.0%

Agency MBS49%

Agency CMO12%

Agency CMBS22%

Securities1%

2For Plan Sponsor use only - Not for use with Plan Participants


Performance

Annual Performance 3-Month YTD 1-Yr 3-Yr 5-Yr 10-YrSince

InceptionGwinnett Stable Value Fund (net of fees) 0.44% 1.80% 1.80% 1.75% 2.01% 3.00% 3.26%

####### ####### ####### ####### 12/1/2012Calendar Year Performance 2016 2015 2014 2013 2012Gwinnett Stable Value Fund (net of fees) 1.80% 1.71% 1.73% 2.13% 2.69%

31-Dec 30-Nov 31-Oct 30-SepCurrent Yield of the Portfolio Based on BV of Assets 2.23% 2.23% 2.24% 2.22%Amortization of Realized G/L AND of Asset/Liability Differential -0.06% -0.06% -0.07% -0.08%Net Investment Performance 2.17% 2.17% 2.17% 2.14%Investment Management Fees -0.20% -0.20% -0.20% -0.20%Participant Book Value Guarantee (Wrap) Fee -0.20% -0.20% -0.20% -0.20%Fee Paid to Plan Account 0.00% 0.00% 0.00% 0.00%Investment Performance After Fees 1.77% 1.77% 1.77% 1.74%

Credited Rate History

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q2016 1.85% 1.80% 1.80% 1.75% 3.70% 3.80% 3.90% 4.00%2015 1.75% 1.75% 1.70% 1.65% 3.25% 3.50% 3.50% 3.55%2014 1.75% 1.70% 1.70% 1.75% 3.70% 3.50% 3.50% 3.25%2013 2.30% 2.20% 2.00% 2.00% 4.90% 4.70% 4.40% 4.10%2012 2.90% 2.85% 2.65% 2.35% N/A N/A N/A 5.15%2011 3.40% 3.40% 3.30% 3.20%2010 3.65% 3.65% 3.60% 3.40%2009 4.25% 4.10% 4.05% 3.80%2008 4.70% 4.55% 4.55% 4.35%2007 4.10% 4.40% 4.50% 4.60%

2002

Performance/Credited Rates


December 31, 2016

2003200420052006



S&P Moodys FitchAAA 0.6% 86.3% 85.3%AA+ 83.8% 0.0% 0.0%AA 0.6% 0.0% 0.6%AA- 0.6% 0.9% 0.9%A+ 2.6% 0.6% 0.0%A 1.5% 1.5% 1.5%A- 1.2% 3.1% 1.2%BBB+ 2.9% 1.8% 0.6%BBB 2.8% 1.8% 3.1%BBB- 0.6% 2.6% 0.6%BB & below 0.0% 0.0% 0.0%NR 2.7% 1.5% 6.3%

Total Assets

Portfolio Quality


December 31, 2016

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB & below

NR

Portfolio Quality

S&P Moodys Fitch

E ti t d C h Fl S h d l *

* Estimated principal and interest flow from current securities in the portfolio.

0.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%16.00%18.00%

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 +

Estimated Cash Flow Schedule*



Holdings Detail

Long Term Holdings ReportDecember 31, 2016


Cusip Par Value Purchase Price Book Value Market Value * Purchase Date Book Yld S&P ** Moody's Fitch'sDescription002824BD1 ABBOTT LABORATORIES ABBOTT LABORATORIES 2.9% Due 11/30/2021 MN30 750,000.00 748,672.50 748,685.18 747,862.50 20161118 2.94 A+ Baa3 A 035242AJ5 ANHEUSER-BUSH INBEV FIN SENIOR UNSECURED GLOBAL NOTES2.65% Due 2/1/2021 FA1 750,000.00 771,382.50 770,008.10 754,308.75 20160916 1.95 A- A3 BBB 05377RBV5 AVIS BUDGET RNTL FDG AESOP LLC ABS SER.2014-2AA 2 1/2% Due 2/20/2021 Mo-20 800,000.00 809,000.00 808,195.93 796,718.88 20160916 2.15 NR Aaa NR 05565EAF2 BMW US CAPITAL LLC SENIOR UNSECURED NOTES 2% Due 4/11/2021 AO11 750,000.00 753,075.00 752,848.10 736,047.75 20160919 1.90 A+ A2 NR 075887AW9 BECTON DICKINSON & CO SENIOR NOTES 3 1/4% Due 11/12/2020 MN12 500,000.00 526,715.00 525,213.71 514,092.00 20160930 1.89 BBB+ Baa2 NR 233851BZ6 DAIMLER FINANCE NA LLC SENIOR UNSECURED NOTES 2% Due 8/3/2018 FA3 750,000.00 756,532.50 755,580.92 751,038.00 20160919 1.52 A A3 A- 23636TAC4 DANONE SA SENIOR UNSECURED NOTES 2.077% Due 11/2/2021 MN2 500,000.00 500,000.00 500,000.00 485,548.50 20161026 2.08 BBB+ Baa1 NR 30289VAE0 FHLMC ABS SER.2016-SB20 CL.A5F 1.74% Due 7/25/2021 Mo-1 499,476.86 501,899.32 501,651.93 489,037.79 20160802 1.61 AA+ Aaa AAA 30289VAG5 FHLMC ABS SER.2016-SB20 CL.A7F 2.01% Due 7/25/2023 Mo-1 500,000.00 502,432.50 502,242.79 483,200.00 20160802 1.92 AA+ Aaa AAA 30294UAA3 FHLMC ABS SER.2016-SB17 CL.A5F 1.86% Due 6/25/2021 Mo-1 598,014.00 603,340.07 602,771.50 589,103.59 20160722 1.63 AA+ Aaa AAA 30300VAG0 FHLMC ABS SER.2016-SB21 CL.A5F Adj % Due 9/25/2021 Mo-1 499,046.60 501,535.35 501,347.45 490,113.67 20160913 1.68 AA+ Aaa AAA 31283HZN8 FHLMC GOLD POOL #G01649 GIANT 5% Due 2/1/2034 Mo-1 33,300.86 34,133.39 34,061.64 36,601.06 20090218 4.16 AA+ Aaa AAA 31287QGL9 FHLMC GOLD POOL #C64703 LLB 6 1/2% Due 3/1/2032 Mo-1 66,684.16 69,476.61 68,806.97 75,318.13 20021216 5.77 AA+ Aaa AAA 31287RQW2 FHLMC GOLD POOL #C65869 LLB 6% Due 4/1/2032 Mo-1 21,822.34 22,473.58 22,376.76 25,123.69 20030923 5.13 AA+ Aaa AAA 31288DMK2 FHLMC GOLD POOL #C74862 6% Due 11/1/2032 Mo-1 16,093.90 16,752.75 16,608.62 18,181.73 20030224 5.25 AA+ Aaa AAA 3128E6B48 FHLMC GOLD POOL #D99059 3 1/2% Due 3/1/2032 Mo-1 219,954.41 230,574.09 229,338.24 227,983.38 20120427 2.40 AA+ Aaa AAA 3128E6YT8 FHLMC GOLD POOL #D99722 3% Due 12/1/2032 Mo-1 735,086.12 775,056.43 769,678.10 749,947.81 20121127 2.10 AA+ Aaa AAA 3128H3JV4 FHLMC GOLD POOL #E95676 LLB 5% Due 4/1/2018 Mo-1 15,415.93 15,873.59 15,463.51 15,793.68 20030429 4.20 AA+ Aaa AAA 3128LXF47 FHLMC GOLD POOL #G01987 HLB 6% Due 12/1/2035 Mo-1 70,849.65 71,901.32 71,791.18 81,548.78 20060105 5.52 AA+ Aaa AAA 3128LXMK3 FHLMC GOLD POOL #G02162 MEGA 5 1/2% Due 5/1/2036 Mo-1 49,062.18 49,702.28 49,645.67 54,961.83 20080115 5.02 AA+ Aaa AAA 3128M4FW8 FHLMC GOLD POOL #G02581 GIANT 5% Due 9/1/2035 Mo-1 83,688.15 84,459.66 84,375.34 92,146.27 20080123 4.70 AA+ Aaa AAA 3128M6AP3 FHLMC GOLD POOL #G04214 GIANT 5 1/2% Due 5/1/2038 Mo-1 53,929.53 55,715.94 55,599.89 60,156.20 20090727 4.46 AA+ Aaa AAA 3128M6DA3 FHLMC GOLD POOL #G04297 GIANT 6% Due 12/1/2037 Mo-1 36,912.48 37,541.13 37,479.68 41,939.94 20080530 5.59 AA+ Aaa AAA 3128M73E4 FHLMC GOLD POOL #G05897 GIANT 4 1/2% Due 5/1/2040 Mo-1 143,223.10 145,774.27 145,611.14 155,440.27 20101229 4.03 AA+ Aaa AAA 3128M7XB7 FHLMC GOLD POOL #G05774 GIANT 5% Due 1/1/2040 Mo-1 374,585.01 389,597.65 388,717.72 412,949.15 20100316 3.87 AA+ Aaa AAA 3128M87E8 FHLMC GOLD POOL #G06893 GIANT 4% Due 1/1/2042 Mo-1 369,233.03 395,367.82 394,305.50 389,910.81 20130508 2.34 AA+ Aaa AAA 3128MAFA2 FHLMC GOLD POOL #G07961 3 1/2% Due 3/1/2045 Mo-1 238,370.61 251,499.62 251,131.41 244,882.26 20150414 2.67 AA+ Aaa AAA 3128MB3F2 FHLMC GOLD POOL #G13298 GIANT 5% Due 10/1/2023 Mo-1 27,525.27 27,125.28 27,233.82 29,416.43 20081017 5.45 AA+ Aaa AAA 3128MBYV3 FHLMC GOLD POOL #G13224 GIANT 4 1/2% Due 5/1/2023 Mo-1 17,095.76 17,568.56 17,396.39 18,064.90 20090417 3.62 AA+ Aaa AAA 3128MC3Z6 FHLMC GOLD POOL #G14216 MEGA 3 1/2% Due 7/1/2021 Mo-1 88,127.85 92,754.55 90,766.08 92,004.98 20110816 1.78 AA+ Aaa AAA 3128MDRH8 FHLMC POOL #G14788 3 1/2% Due 9/1/2026 Mo-1 206,722.67 215,831.39 214,341.22 215,817.31 20130702 2.25 AA+ Aaa AAA 3128MDVQ3 FHLMC GOLD POOL #G14923 3% Due 10/1/2023 Mo-1 511,646.18 533,630.98 528,122.81 525,469.08 20131018 1.75 AA+ Aaa AAA 3128MEBX8 FHLMC GOLD POOL #G15254 3% Due 12/1/2029 Mo-1 381,773.54 399,191.96 397,519.25 392,311.28 20150107 2.09 AA+ Aaa AAA 3128MEDQ1 FHLMC GOLD POOL #G15311 3% Due 9/1/2027 Mo-1 705,603.70 740,773.63 737,894.58 725,056.80 20150515 1.56 AA+ Aaa AAA 3128MJDL1 FHLMC GOLD POOL #G08106 GIANT 6% Due 1/1/2036 Mo-1 54,773.46 55,175.70 55,121.50 62,576.76 20071022 5.81 AA+ Aaa AAA 3128MJJB7 FHLMC GOLD POOL #G08257 GIANT 6% Due 3/1/2038 Mo-1 33,854.79 34,410.23 34,367.66 38,246.70 20080530 5.45 AA+ Aaa AAA 3128MJJJ0 FHLMC GOLD POOL #G08264 GIANT 6% Due 4/1/2038 Mo-1 24,897.99 25,180.03 25,156.27 28,182.07 20080630 5.63 AA+ Aaa AAA 3128MMKJ1 FHLMC GOLD POOL #G18296 GIANT 4 1/2% Due 2/1/2024 Mo-1 22,648.83 23,165.52 22,982.80 24,053.71 20090218 3.83 AA+ Aaa AAA 3128MMKR3 FHLMC GOLD POOL #G18303 GIANT 4 1/2% Due 3/1/2024 Mo-1 60,492.04 62,396.57 61,794.81 64,025.01 20090428 3.51 AA+ Aaa AAA 3128MMLB7 FHLMC GOLD POOL #G18321 GIANT 4 1/2% Due 8/1/2024 Mo-1 141,314.08 145,509.25 144,324.10 148,939.46 20090903 3.51 AA+ Aaa AAA 3128MMTT0 FHLMC GOLD POOL #G18561 3% Due 7/1/2030 Mo-1 603,365.02 629,573.69 628,030.65 619,761.38 20151021 2.12 AA+ Aaa AAA 3128P75W9 FHLMC GOLD POOL #C91761 4% Due 5/1/2034 Mo-1 478,783.98 510,054.54 508,136.54 509,211.54 20140610 2.46 AA+ Aaa AAA 3128P7M67 FHLMC GOLD POOL #C91281 4 1/2% Due 12/1/2029 Mo-1 102,187.98 104,854.46 104,489.57 109,741.61 20100216 3.63 AA+ Aaa AAA 3128P7NT6 FHLMC GOLD POOL #C91302 4 1/2% Due 5/1/2030 Mo-1 111,984.54 116,113.96 115,543.02 120,388.13 20100525 3.42 AA+ Aaa AAA 3128P7R70 FHLMC GOLD POOL #C91410 4% Due 11/1/2031 Mo-1 246,696.84 261,941.95 260,656.41 261,869.32 20140318 2.53 AA+ Aaa AAA 3128P7S53 FHLMC GOLD POOL #C91440 3 1/2% Due 3/1/2032 Mo-1 213,832.67 224,758.20 223,231.61 221,748.51 20120416 2.53 AA+ Aaa AAA 3128P7TJ2 FHLMC GOLD POOL #C91453 3 1/2% Due 5/1/2032 Mo-1 419,380.24 444,739.64 441,273.31 434,869.94 20120530 2.37 AA+ Aaa AAA 3128P7W58 FHLMC GOLD POOL #C91568 3% Due 10/1/2032 Mo-1 297,558.73 312,808.60 311,082.64 303,586.83 20121101 1.95 AA+ Aaa AAA 3128P8C41 FHLMC POOL #C91891 3% Due 9/1/2036 Mo-1 740,364.98 778,424.37 777,837.86 749,232.21 20160823 1.94 AA+ Aaa AAA 3128PRAQ2 FHLMC GOLD POOL #J11815 4% Due 3/1/2025 Mo-1 71,993.20 74,797.00 74,112.36 75,723.96 20100715 2.72 AA+ Aaa AAA 3128PTJ63 FHLMC GOLD POOL #J13885 3 1/2% Due 12/1/2025 Mo-1 373,878.46 394,149.67 390,585.39 390,358.95 20131121 2.01 AA+ Aaa AAA 3128PTUH6 FHLMC GOLD POOL #J14184 3 1/2% Due 1/1/2026 Mo-1 435,489.09 459,134.80 454,635.06 454,976.87 20131126 2.16 AA+ Aaa AAA 3128PWM47 FHLMC POOL #J16679 3% Due 9/1/2026 Mo-1 116,968.37 121,994.36 121,035.94 120,196.82 20130612 1.96 AA+ Aaa AAA 3128PXKT2 FHLMC GOLD POOL #J17506 3% Due 12/1/2026 Mo-1 1,290,811.35 1,333,972.85 1,324,658.81 1,326,419.36 20111228 2.17 AA+ Aaa AAA 3128QHUM0 FHLMC POOL #1N1488 HARM Adj % Due 5/1/2037 Mo-1 170,749.47 170,616.07 170,556.80 177,704.60 20070531 2.77 AA+ Aaa AAA 3128QSD86 FHLMC POOL #1G1927 HARM Adj % Due 5/1/2037 Mo-1 27,455.33 27,439.24 27,431.10 29,087.81 20070702 2.80 AA+ Aaa AAA 31292K2X4 FHLMC GOLD POOL #C03490 4 1/2% Due 8/1/2040 Mo-1 154,343.00 160,148.96 159,820.31 166,178.45 20100720 3.45 AA+ Aaa AAA 31292K3K1 FHLMC GOLD POOL #C03502 5% Due 5/1/2040 Mo-1 124,504.14 130,418.08 130,051.53 136,512.04 20100519 3.84 AA+ Aaa AAA 31292K7K7 FHLMC GOLD POOL #C03598 4% Due 11/1/2040 Mo-1 142,101.22 147,052.56 146,680.03 150,020.09 20101013 3.32 AA+ Aaa AAA 3129343B6 FHLMC GOLD POOL #A87994 5% Due 8/1/2039 Mo-1 92,081.49 95,448.23 95,251.46 101,233.67 20091009 3.87 AA+ Aaa AAA 312939JH5 FHLMC GOLD POOL #A91164 5% Due 2/1/2040 Mo-1 339,664.44 353,224.48 352,354.70 374,806.10 20100216 3.97 AA+ Aaa AAA

7 of 13For Plan Sponsor use only - Not for use with Plan Participants




Cusip Par Value Purchase Price Book Value Market Value * Purchase Date Book Yld S&P ** Moody's Fitch'sDescription312940EQ8 FHLMC GOLD POOL #A91943 4 1/2% Due 4/1/2040 Mo-1 80,693.12 81,916.13 81,843.79 86,830.23 20110111 4.02 AA+ Aaa AAA 3129413F2 FHLMC GOLD POOL #A93498 4 1/2% Due 8/1/2040 Mo-1 263,101.81 275,516.93 274,854.65 284,173.76 20100805 3.30 AA+ Aaa AAA 31294KN43 FHLMC GOLD POOL #E01311 5 1/2% Due 2/1/2018 Mo-1 5,483.19 5,632.26 5,497.92 5,576.22 20021218 4.61 AA+ Aaa AAA 31294KP41 FHLMC GOLD POOL #E01343 5% Due 4/1/2018 Mo-1 12,444.18 12,322.90 12,394.69 12,749.11 20061025 5.38 AA+ Aaa AAA 31294KTB1 FHLMC GOLD POOL #E01446 4 1/2% Due 9/1/2018 Mo-1 7,654.33 7,632.81 7,637.96 7,853.23 20030923 4.58 AA+ Aaa AAA 31294KUE3 FHLMC GOLD POOL #E01481 4 1/2% Due 10/1/2018 Mo-1 8,710.31 8,688.53 8,692.24 8,936.65 20031031 4.57 AA+ Aaa AAA 31294MJN2 FHLMC GOLD POOL #E02969 3 1/2% Due 8/1/2026 Mo-1 272,129.63 284,120.35 281,395.60 285,565.37 20111104 2.40 AA+ Aaa AAA 312964RN1 FHLMC GOLD POOL #B12293 MLB 5 1/2% Due 2/1/2019 Mo-1 13,165.40 13,406.07 13,201.41 13,475.40 20040618 5.04 AA+ Aaa AAA 312965KJ4 FHLMC GOLD POOL #B12997 4 1/2% Due 3/1/2019 Mo-1 8,032.95 7,946.34 7,996.70 8,242.35 20040421 4.82 AA+ Aaa AAA 31296YFU2 FHLMC GOLD POOL #A21979 5% Due 5/1/2034 Mo-1 105,616.44 109,081.98 108,687.04 116,295.93 20090107 4.16 AA+ Aaa AAA 312970N28 FHLMC GOLD POOL #B17609 LLB 5% Due 1/1/2020 Mo-1 49,617.34 49,950.70 49,676.86 51,566.27 20050426 4.79 AA+ Aaa AAA 31297TY31 FHLMC GOLD POOL #A37930 100% NY 5 1/2% Due 10/1/2035 Mo-1 34,208.85 34,315.75 34,299.66 38,477.99 20050928 5.29 AA+ Aaa AAA 31307GJC4 FHLMC GOLD POOL #J27459 3% Due 2/1/2029 Mo-1 702,936.22 737,533.86 734,651.17 722,415.90 20150320 1.84 AA+ Aaa AAA 31307L5C8 FHLMC GOLD POOL #J30843 3% Due 2/1/2030 Mo-1 628,750.54 658,026.71 655,570.95 646,256.72 20150326 2.06 AA+ Aaa AAA 31307P5E5 FHLMC GOLD POOL #J33545 3% Due 1/1/2031 Mo-1 686,739.37 718,930.28 717,567.65 709,747.92 20160226 2.06 AA+ Aaa AAA 31307QEL7 FHLMC GOLD POOL #J33739 3% Due 2/1/2031 Mo-1 660,068.33 691,009.04 689,708.45 680,018.00 20160226 2.06 AA+ Aaa AAA 3132GUKK9 FHLMC GOLD POOL #Q08898 3 1/2% Due 6/1/2042 Mo-1 383,335.51 402,322.57 401,371.58 394,820.02 20120621 2.45 AA+ Aaa AAA 3136A6HZ0 FNMA ABS SER.2012-M5 CL.A1 1.787% Due 2/25/2022 Mo-1 476,468.22 480,488.41 479,288.75 474,787.05 20150320 1.51 AA+ Aaa AAA 3136A74V1 FNMA CMO SER.2012-96 CL.VA 3 1/2% Due 2/25/2022 Mo-1 580,062.83 635,350.07 609,278.86 602,287.82 20120823 1.45 AA+ Aaa AAA 3136AK2A0 FNMA ABS SER.2014-M10 CL.ASQ2 2.17135% Due 9/25/2019 Mo- 750,000.00 749,999.70 749,478.91 753,054.38 20140910 2.15 AA+ Aaa AAA 3136AKFL2 FNMA CMO SER.2014-35 CL.CA 3 1/2% Due 6/25/2044 Mo-1 483,079.01 508,138.74 504,783.24 505,344.46 20140722 2.26 AA+ Aaa AAA 3136AKQG1 FNMA CMO SER.2014-42 CL.A 3% Due 8/25/2036 Mo-1 530,209.43 545,601.19 544,859.62 539,292.56 20140625 2.19 AA+ Aaa AAA 3136AKXB4 FNMA CMO SER.2014-49 CL.CA 3% Due 8/25/2044 Mo-1 432,421.43 447,556.17 446,013.08 442,194.63 20140711 1.99 AA+ Aaa AAA 3136AMKY4 FNMA ABS SER.2015-M1 CL.A1 2.177% Due 9/25/2024 Mo-1 675,968.38 684,417.96 682,384.43 672,329.57 20150320 1.91 AA+ Aaa AAA 3136AMRU5 FNMA ABS SER.2015-M3 CL.A1 2.30055% Due 10/25/2024 Mo 878,085.83 886,866.34 884,804.78 878,114.63 20150212 2.08 AA+ Aaa AAA 3136ANLM7 FNMA ABS SER.2015-M6 CL.A1 Adj % Due 1/25/2026 Mo-1 587,844.11 620,083.68 617,149.58 601,553.28 20150410 1.82 AA+ Aaa AAA 3136APJT0 FNMA CMO SER.2015-51 CL.CD 3% Due 7/25/2044 Mo-1 816,930.31 843,608.20 840,047.38 828,698.60 20150709 2.18 AA+ Aaa AAA 3136AQC81 FNMA ABS SER.2015-M17 CL.A1 ACES 2.51951% Due 11/25/2025 Mo 718,383.21 725,566.91 724,435.34 719,662.58 20151211 2.31 AA+ Aaa AAA 3136ATLD4 FNMA ABS SER.2016-48 CL.QP 3% Due 1/25/2045 Mo-1 974,011.15 1,006,123.08 1,005,524.11 982,358.62 20160715 2.64 AA+ Aaa AAA 3136ATML5 FNMA CMO SER.2016-48 CL.LP 3% Due 8/25/2046 Mo-1 979,796.01 1,012,902.39 1,010,600.53 983,700.89 20160721 2.23 AA+ Aaa AAA 3136ATNQ3 FNMA CMO SER.2016-66 CL.PA 3% Due 3/25/2046 Mo-1 985,425.50 1,022,840.87 1,020,720.58 1,001,785.73 20160805 2.11 AA+ Aaa AAA 3136ATYS7 FNMA ABS SER.2016-M9 CL.A1 ACES 2.003% Due 2/25/2026 Mo-1 346,879.86 350,344.49 350,196.31 336,756.73 20160908 1.80 AA+ Aaa AAA 3136AUCH2 FNMA CMO SER.2016-85 CL.A 3% Due 6/25/2046 Mo-1 993,457.35 1,026,365.62 1,025,350.79 995,307.66 20161011 2.19 AA+ Aaa AAA 31371HPB8 FNMA POOL #252518 7% Due 5/1/2029 Mo-1 54,157.43 56,865.33 56,027.69 61,598.39 20021217 6.05 AA+ Aaa AAA 31371KXQ9 FNMA POOL #254587 5 1/2% Due 12/1/2022 Mo-1 18,180.24 18,469.97 18,303.02 20,193.87 20050301 5.08 AA+ Aaa AAA 31371LCA5 FNMA POOL #254865 4 1/2% Due 9/1/2018 Mo-1 15,848.62 15,870.93 15,815.71 16,288.33 20030716 4.41 AA+ Aaa AAA 31371LVC0 FNMA POOL #255411 5 1/2% Due 10/1/2034 Mo-1 82,290.02 85,311.62 85,054.86 92,130.11 20090728 4.25 AA+ Aaa AAA 31371MGG6 FNMA POOL #255899 SEASONED 5 1/2% Due 10/1/2035 Mo-1 64,041.85 63,261.33 63,289.25 71,597.00 20071114 5.84 AA+ Aaa AAA 31376J5B1 FNMA POOL #357342 5 1/2% Due 2/1/2033 Mo-1 33,016.11 33,599.07 33,541.60 36,981.77 20050211 4.52 AA+ Aaa AAA 3137A5LP7 FHLMC CMO SER.3791 CL.LV 4 1/2% Due 2/15/2022 Mo-1 263,358.77 282,493.45 265,809.10 270,649.96 20110131 2.89 AA+ Aaa AAA 3137A7NT3 FHLMC ABS SER.K011 CL.A1 2.917% Due 8/25/2020 Mo-1 300,842.06 300,840.13 300,443.20 307,032.01 20110318 2.89 AA+ Aaa AAA 3137A8PN2 FHLMC ABS SER.K012 CL.A1 3.427% Due 10/25/2020 Mo-1 328,853.72 332,138.96 329,592.55 338,324.90 20110407 3.18 AA+ Aaa AAA 3137ABFG1 FHLMC ABS SER.KAIV CL.A1 2.966% Due 1/25/2021 Mo-1 242,505.93 253,134.48 244,059.69 247,954.92 20130815 2.56 AA+ Aaa AAA 3137ACK99 FHLMC CMO SER.3876 CL.CA 2 3/4% Due 6/15/2026 Mo-1 141,045.14 145,981.73 142,822.85 142,377.16 20131212 0.74 AA+ Aaa AAA 3137AFSN3 FHLMC CMO SER.3919 CL.VJ 4% Due 8/15/2024 Mo-1 979,803.96 1,079,315.30 1,011,891.30 1,009,016.72 20130604 1.39 AA+ Aaa AAA 3137AKKC4 FHLMC ABS SER.K705 CL.A2 2.303% Due 9/25/2018 Mo-1 500,000.00 504,986.00 500,759.00 505,750.60 20120119 2.13 AA+ Aaa AAA 3137ANMN2 FHLMC ABS SER.K707 CL.A2 2.22% Due 12/25/2018 Mo-1 1,000,000.00 1,027,031.25 1,007,115.14 1,011,011.20 20120530 1.76 AA+ Aaa AAA 3137ASNH3 FHLMC ABS SER.K019 CL.A1 1.459% Due 9/25/2021 Mo-1 576,431.88 565,916.48 571,357.26 570,581.04 20130717 1.82 AA+ Aaa AAA 3137AUPD5 FHLMC ABS SER.K021 CL.A1 1.603% Due 1/25/2022 Mo-1 349,442.47 339,396.02 344,243.40 346,997.18 20130814 2.14 AA+ Aaa AAA 3137AVE86 FHLMC ABS SER.K711 CL.A2 1.73% Due 7/25/2019 Mo-1 500,000.00 494,179.69 496,624.23 499,564.45 20141002 1.98 AA+ Aaa AAA 3137B1BS0 FHLMC ABS SER.K026 CL.A2 2.51% Due 11/25/2022 Mo-1 500,000.00 509,296.88 506,894.48 501,872.15 20150122 2.23 AA+ Aaa AAA 3137B2HM5 FHLMC ABS SER.K028 CL.A1 2.182% Due 11/25/2022 Mo-1 600,036.91 607,537.35 605,622.61 601,981.09 20150211 1.82 AA+ Aaa AAA 3137B3NW4 FHLMC ABS SER.K031 CL.A1 2.778% Due 9/25/2022 Mo-1 756,142.46 791,173.10 785,555.71 769,440.06 20150402 1.38 AA+ Aaa AAA 3137B7GP8 FHLMC CMO REMIC SER.4293 CL.KG 3% Due 8/15/2043 Mo-1 440,962.05 456,809.13 454,812.82 451,312.36 20140711 2.11 AA+ Aaa AAA 3137BAHA3 FHLMC ABS SER.K715 CL.A2 2.856% Due 1/25/2021 Mo-1 475,000.00 501,329.10 493,334.25 489,180.84 20150408 1.80 AA+ Aaa AAA 3137BDDC7 FHLMC ABS SER.K716 CL.A2 3.13% Due 6/25/2021 Mo-1 750,000.00 802,500.00 797,804.31 780,088.43 20160726 1.56 AA+ Aaa AAA 3137BEF58 FHLMC ABS SER.K503 CL.A2 2.456% Due 8/25/2019 Mo-1 500,000.00 514,992.50 507,402.49 507,506.70 20141016 1.72 AA+ Aaa AAA 3137BEVG6 FHLMC ABS SER.K040 CL.A1 2.768% Due 4/25/2024 Mo-1 692,481.65 731,650.15 729,513.46 703,578.11 20160816 1.56 AA+ Aaa AAA 3137BHX51 FHLMC ABS SER.K045 CL.A1 2.493% Due 11/25/2024 Mo-1 951,331.09 970,308.24 966,223.39 956,214.56 20150501 2.12 AA+ Aaa AAA 3137BKWB2 FHLMC ABS SER.KP02 CL.A2 2.355% Due 4/25/2021 Mo-1 750,000.00 757,470.00 754,363.67 753,526.88 20150819 2.04 AA+ Aaa AAA 3137BMLC8 FHLMC ABS SER.K504 CL.A2 2.566% Due 9/25/2020 Mo-1 750,000.00 772,500.00 767,153.19 762,975.90 20160115 1.76 AA+ Aaa AAA





Cusip Par Value Purchase Price Book Value Market Value * Purchase Date Book Yld S&P ** Moody's Fitch'sDescription3137BPVZ9 FHLMC ABS SER.K055 CL.A1 2.263% Due 4/25/2025 Mo-1 737,857.65 752,584.56 751,472.95 729,770.44 20160609 1.88 AA+ Aaa AAA 3137BQBY2 FHLMC ABS SER.K722 CL.A1 2.183% Due 5/25/2022 Mo-1 496,097.05 506,008.08 505,037.50 495,345.61 20160622 1.74 AA+ Aaa AAA 3137BRQH1 FHLMC ABS SER.K057 CL.A1 2.206% Due 6/25/2025 Mo-1 299,103.90 305,070.42 304,825.49 292,110.73 20160914 1.85 AA+ Aaa AAA 31385JM88 FNMA POOL #545883 SEASONED 5 1/2% Due 9/1/2017 Mo-1 1,936.98 2,035.65 1,945.83 1,948.62 20090626 3.33 AA+ Aaa AAA 31389MC47 FNMA POOL #629291 LLB 6 1/2% Due 2/1/2032 Mo-1 104,076.93 108,467.68 107,753.96 117,749.17 20021205 5.29 AA+ Aaa AAA 3138A4F42 FNMA POOL #AH2886 3 1/2% Due 2/1/2026 Mo-1 123,838.17 129,565.67 128,050.92 129,212.07 20110816 2.40 AA+ Aaa AAA 3138A7G28 FNMA POOL #AH5616 3 1/2% Due 2/1/2026 Mo-1 190,418.99 198,987.86 196,880.66 198,634.05 20110927 2.34 AA+ Aaa AAA 3138A8KG0 FNMA POOL #AH6594 3 1/2% Due 3/1/2026 Mo-1 395,339.18 417,082.83 413,285.62 412,511.53 20140130 2.07 AA+ Aaa AAA 3138ABL31 FNMA POOL #AH9345 3 1/2% Due 4/1/2026 Mo-1 357,195.51 375,194.82 372,714.28 372,611.05 20131212 1.76 AA+ Aaa AAA 3138AMV85 FNMA POOL #AI7838 3 1/2% Due 7/1/2026 Mo-1 533,743.72 562,682.63 560,474.15 557,089.42 20151125 1.93 AA+ Aaa AAA 3138AVRM9 FNMA POOL #AJ4091 3 1/2% Due 10/1/2026 Mo-1 288,504.77 301,983.36 298,848.02 301,345.37 20111121 2.37 AA+ Aaa AAA 3138AVRN7 FNMA POOL #AJ4092 3 1/2% Due 10/1/2026 Mo-1 170,765.54 178,396.65 176,609.18 178,346.08 20111109 2.42 AA+ Aaa AAA 3138AWNM1 FNMA POOL #AJ4895 4% Due 1/1/2042 Mo-1 522,344.53 566,254.11 563,974.66 551,722.54 20120911 2.31 AA+ Aaa AAA 3138AXFW6 FNMA POOL #AJ5580 3% Due 1/1/2027 Mo-1 422,223.28 440,761.53 438,841.14 434,262.84 20150519 1.87 AA+ Aaa AAA 3138EH7H9 FNMA POOL #AL1795 MEGA 3% Due 4/1/2027 Mo-1 750,028.74 794,210.14 786,121.56 771,423.37 20120713 1.44 AA+ Aaa AAA 3138ENC56 FNMA POOL #AL5491 4% Due 6/1/2034 Mo-1 709,756.87 762,655.93 759,086.28 756,253.82 20140828 2.52 AA+ Aaa AAA 3138ENZ93 FNMA POOL #AL6167 3 1/2% Due 1/1/2044 Mo-1 622,197.74 650,731.36 650,201.45 641,755.39 20160321 2.82 AA+ Aaa AAA 3138EQZ96 FNMA POOL #AL7967 3% Due 7/1/2030 Mo-1 440,573.31 459,091.15 458,216.83 452,868.86 20160127 2.09 AA+ Aaa AAA 3138LY2K2 FNMA POOL #AO7977 3% Due 6/1/2027 Mo-1 575,919.79 600,306.40 598,339.91 592,315.24 20150826 1.84 AA+ Aaa AAA 3138M0UC2 FNMA POOL #AO8678 3% Due 7/1/2027 Mo-1 300,384.23 317,984.87 314,771.84 308,952.82 20120802 1.51 AA+ Aaa AAA 3138W4SR3 FNMA POOL #AR6827 3% Due 2/1/2033 Mo-1 674,287.98 705,263.08 704,429.14 688,044.91 20160516 1.96 AA+ Aaa AAA 3138W9UF5 FNMA POOL #AS0581 3% Due 9/1/2023 Mo-1 629,623.14 654,808.09 648,018.18 649,140.46 20131011 1.85 AA+ Aaa AAA 3138WBAJ4 FNMA POOL #AS1808 3 1/2% Due 2/1/2034 Mo-1 594,043.89 629,500.89 627,528.73 616,798.13 20150116 2.18 AA+ Aaa AAA 3138WEKK4 FNMA POOL #AS4797 3 1/2% Due 4/1/2045 Mo-1 606,509.44 639,109.32 638,204.69 622,846.81 20150407 2.62 AA+ Aaa AAA 3138WEQK8 FNMA POOL #AS4957 3% Due 5/1/2030 Mo-1 615,324.45 639,264.43 637,387.63 632,186.66 20150707 2.23 AA+ Aaa AAA 3138WFUC8 FNMA POOL #AS5978 3% Due 10/1/2030 Mo-1 678,124.88 708,110.71 706,794.45 700,485.30 20160307 2.09 AA+ Aaa AAA 3138WGQV9 FNMA POOL #AS6767 3% Due 3/1/2031 Mo-1 661,817.79 692,426.85 691,133.10 680,256.18 20160222 2.07 AA+ Aaa AAA 3138WZSH6 FNMA POOL #AU0519 3% Due 8/1/2028 Mo-1 679,963.02 701,530.60 701,300.55 699,516.32 20161213 2.11 AA+ Aaa AAA 3138XYRT3 FNMA POOL #AW8597 3% Due 8/1/2029 Mo-1 723,318.84 752,364.62 750,972.94 742,941.58 20150903 1.75 AA+ Aaa AAA 3138YNAY3 FNMA POOL #AY8122 3% Due 6/1/2030 Mo-1 655,013.43 681,623.34 679,630.42 673,294.64 20150708 2.17 AA+ Aaa AAA 3138YW4P9 FNMA POOL #AZ5329 3% Due 7/1/2030 Mo-1 419,002.06 433,994.46 433,077.79 432,832.74 20151118 2.31 AA+ Aaa AAA 31391HV27 FNMA POOL #667633 LLB 7% Due 10/1/2032 Mo-1 54,719.07 57,600.38 56,859.42 59,349.54 20021204 6.15 AA+ Aaa AAA 31391KAG2 FNMA POOL #668807 LLB 6% Due 11/1/2017 Mo-1 14,652.12 15,320.63 14,671.08 14,807.85 20021205 4.88 AA+ Aaa AAA 31391NES6 FNMA POOL #671645 6% Due 11/1/2032 Mo-1 19,560.28 20,186.83 20,033.30 22,354.29 20021223 5.42 AA+ Aaa AAA 31392ESX9 FNMA CMO SER.2002-59 CL.B 5 1/2% Due 9/25/2017 Mo-1 112.89 114.90 112.59 113.43 20040519 4.84 AA+ Aaa AAA 31393RN55 FHLMC CMO FLOAT SER.2637 CL.FA Flt % Due 6/15/2018 Mo-15 0.03 0.03 - - #N/A 0.00 #N/A #N/A #N/A31394UCB6 FNMA CMO FLOAT SER.2005-86 CL.FC Flt % Due 10/25/2035 Mo-25 2,021.21 2,020.58 2,017.89 2,022.73 20051006 3.15 AA+ Aaa AAA 31394W2R8 FHLMC CMO SER.2770 CL.PM 4 1/2% Due 3/15/2034 Mo-1 144,911.96 146,361.07 145,875.39 154,403.79 20100326 4.28 AA+ Aaa AAA 31394YF33 FHLMC CMO SER.2796 CL.LB 4 1/2% Due 5/15/2024 Mo-1 69,338.50 70,595.24 69,977.01 73,441.52 20090518 4.05 AA+ Aaa AAA 31398JZR7 FHLMC ABS SER.K004 CL.A1 3.413% Due 5/25/2019 Mo-1 180,378.35 184,803.28 181,615.75 184,871.02 20110225 2.73 AA+ Aaa AAA 31400UJ21 FNMA POOL #697881 LLB 5% Due 7/1/2018 Mo-1 16,638.49 16,708.68 16,610.83 17,027.88 20030826 4.80 AA+ Aaa AAA 31400X4X3 FNMA POOL #701138 5 1/2% Due 4/1/2033 Mo-1 28,537.03 28,719.84 28,681.28 31,855.44 20040805 5.27 AA+ Aaa AAA 31402DC24 FNMA POOL #725589 MEGA 5% Due 7/1/2034 Mo-1 65,964.00 67,489.43 67,347.23 72,418.65 20090629 4.19 AA+ Aaa AAA 31402DCV0 FNMA POOL #725584 MEGA 5% Due 7/1/2034 Mo-1 46,819.98 47,820.39 47,715.74 51,365.69 20090202 4.30 AA+ Aaa AAA 31402J4Y0 FNMA POOL #730839 5% Due 7/1/2033 Mo-1 114,661.24 118,674.39 118,251.60 125,182.96 20090331 3.90 AA+ Aaa AAA 31402RDD8 FNMA POOL #735500 MEGA 5 1/2% Due 5/1/2035 Mo-1 42,617.65 42,943.96 42,895.89 47,737.75 20080521 5.24 AA+ Aaa AAA 31402V4E7 FNMA POOL #739821 5% Due 9/1/2033 Mo-1 100,142.46 103,005.90 102,640.25 109,690.92 20090316 4.26 AA+ Aaa AAA 31402WTX6 FNMA POOL #740466 MLB 5 1/2% Due 10/1/2018 Mo-1 9,276.99 9,532.11 9,329.37 9,459.04 20031017 4.35 AA+ Aaa AAA 31402YEY6 FNMA POOL #741851 MLB 6% Due 9/1/2033 Mo-1 226,843.50 234,446.32 233,377.68 261,610.99 20031002 5.03 AA+ Aaa AAA 31403CXQ9 FNMA POOL #745087 MEGA 5 1/2% Due 12/1/2035 Mo-1 75,656.44 76,495.77 76,393.11 84,706.69 20080331 5.15 AA+ Aaa AAA 31403DBK4 FNMA POOL #745342 MEGA 6% Due 3/1/2036 Mo-1 35,307.64 35,972.42 35,911.75 40,107.43 20080103 5.32 AA+ Aaa AAA 31403DD97 FNMA POOL #745428 MEGA 5 1/2% Due 1/1/2036 Mo-1 41,577.56 41,671.76 41,647.24 46,562.83 20080214 5.37 AA+ Aaa AAA 31403DDX4 FNMA POOL #745418 MEGA 5 1/2% Due 4/1/2036 Mo-1 57,310.08 57,717.53 57,663.40 64,104.77 20080324 5.23 AA+ Aaa AAA 31403DSP5 FNMA POOL #745826 6% Due 7/1/2036 Mo-1 29,264.09 29,126.92 29,123.14 33,149.12 20070809 6.10 AA+ Aaa AAA 31403VT66 FNMA POOL #759373 100% NY 5 1/2% Due 1/1/2034 Mo-1 55,078.62 56,348.00 56,158.62 61,195.16 20040226 4.85 AA+ Aaa AAA 31404M5S3 FNMA POOL #773157 4 1/2% Due 6/1/2019 Mo-1 369,131.25 387,126.39 381,481.60 379,372.64 20150915 1.16 AA+ Aaa AAA 31407HJB3 FNMA POOL #831058 SEASONED 5% Due 10/1/2020 Mo-1 76,269.60 77,282.55 76,604.36 78,197.94 20080414 4.53 AA+ Aaa AAA 31408DLL6 FNMA POOL #848231 HARM Adj % Due 11/1/2035 Mo-1 290,360.19 289,475.51 289,465.97 306,392.34 20061215 3.30 AA+ Aaa AAA 3140EUH77 FNMA POOL #BC0253 3% Due 2/1/2031 Mo-1 952,921.34 996,696.16 994,833.13 984,556.04 20160226 2.07 AA+ Aaa AAA 31410GA78 FNMA POOL #888430 MEGA 5% Due 11/1/2033 Mo-1 51,079.48 52,436.29 52,280.04 56,017.66 20090309 4.22 AA+ Aaa AAA 31410GAR4 FNMA POOL #888416 MEGA 5% Due 9/1/2035 Mo-1 99,310.38 101,979.35 101,694.28 109,076.70 20090309 4.29 AA+ Aaa AAA





Cusip Par Value Purchase Price Book Value Market Value * Purchase Date Book Yld S&P ** Moody's Fitch'sDescription31410KJ54 FNMA POOL #889584 5 1/2% Due 1/1/2037 Mo-1 34,030.56 34,307.04 34,274.08 38,147.26 20080521 5.20 AA+ Aaa AAA 31410LRH7 FNMA POOL #890688 3% Due 8/1/2028 Mo-1 167,848.00 174,509.47 173,985.03 172,605.82 20150724 2.04 AA+ Aaa AAA 31412PRQ6 FNMA POOL #931195 4 1/2% Due 5/1/2024 Mo-1 39,440.11 41,251.90 40,713.42 41,686.02 20100519 3.04 AA+ Aaa AAA 31412QGK9 FNMA POOL #931802 5% Due 8/1/2039 Mo-1 90,577.78 93,521.55 93,304.72 99,657.40 20091027 4.16 AA+ Aaa AAA 31412QSY6 FNMA POOL #932135 5% Due 11/1/2039 Mo-1 189,082.69 195,139.25 194,766.29 207,746.04 20100111 4.01 AA+ Aaa AAA 31413BWG2 FNMA POOL #940847 6% Due 8/1/2037 Mo-1 65,650.00 65,424.33 65,411.23 74,271.77 20070820 6.06 AA+ Aaa AAA 31414RQB4 FNMA POOL #973950 4 1/2% Due 4/1/2023 Mo-1 14,396.52 14,677.71 14,584.02 15,274.77 20090225 3.66 AA+ Aaa AAA 31416LTZ9 FNMA POOL #AA3267 5% Due 2/1/2039 Mo-1 65,970.07 67,650.24 67,526.33 72,294.71 20090306 4.24 AA+ Aaa AAA 31416M5Z3 FNMA POOL #AA4463 4 1/2% Due 4/1/2039 Mo-1 222,840.20 237,951.55 237,381.03 239,675.45 20140321 2.27 AA+ Aaa AAA 31416TL49 FNMA POOL #AA9346 4 1/2% Due 8/1/2039 Mo-1 135,719.53 140,618.17 140,277.37 147,187.66 20101202 3.63 AA+ Aaa AAA 31416VLZ5 FNMA POOL #AB0343 4 1/2% Due 1/1/2020 Mo-1 653,492.64 680,959.75 673,756.90 671,623.51 20150827 1.83 AA+ Aaa AAA 31416WP71 FNMA POOL #AB1345 4 1/2% Due 8/1/2040 Mo-1 129,293.58 132,334.00 132,154.97 139,512.67 20101222 3.80 AA+ Aaa AAA 31416WUN0 FNMA POOL #AB1488 4% Due 9/1/2030 Mo-1 295,411.88 306,697.53 304,838.09 313,366.26 20100916 3.09 AA+ Aaa AAA 31417ARK7 FNMA POOL #AB4089 3% Due 12/1/2026 Mo-1 174,504.68 179,957.97 178,602.99 179,462.52 20111207 2.30 AA+ Aaa AAA 31417BRG4 FNMA POOL #AB4986 3 1/2% Due 4/1/2032 Mo-1 247,431.48 259,957.70 258,195.07 257,329.62 20120416 2.53 AA+ Aaa AAA 31417CMD4 FNMA POOL #AB5755 3% Due 7/1/2032 Mo-1 695,193.40 726,585.72 725,702.17 709,259.70 20160527 1.97 AA+ Aaa AAA 31417CXG5 FNMA POOL #AB6078 3% Due 9/1/2032 Mo-1 632,620.69 666,228.64 661,802.07 645,519.10 20121127 2.05 AA+ Aaa AAA 31417DSS3 FNMA POOL #AB6828 3 1/2% Due 11/1/2042 Mo-1 417,228.32 440,567.02 439,829.77 430,203.04 20150324 2.56 AA+ Aaa AAA 31417FK98 FNMA POOL #AB8419 3% Due 2/1/2033 Mo-1 823,026.15 860,833.90 859,702.08 839,788.72 20160418 1.97 AA+ Aaa AAA 31417UZZ1 FNMA POOL #AC7959 4% Due 1/1/2025 Mo-1 116,916.93 122,306.08 120,896.30 123,474.85 20110719 2.63 AA+ Aaa AAA 31417VPB3 FNMA POOL #AC8517 5% Due 12/1/2039 Mo-1 127,768.18 132,479.63 132,182.30 141,031.79 20100120 3.93 AA+ Aaa AAA 31417Y2J5 FNMA POOL #MA0776 4 1/2% Due 6/1/2031 Mo-1 133,728.40 140,477.51 139,641.97 143,999.45 20110602 3.14 AA+ Aaa AAA 31417YFM4 FNMA POOL #MA0171 4 1/2% Due 9/1/2029 Mo-1 147,747.06 150,863.62 150,332.41 158,909.13 20090903 3.84 AA+ Aaa AAA 31417YGJ0 FNMA POOL #MA0200 4 1/2% Due 10/1/2029 Mo-1 69,194.63 71,584.01 71,206.82 74,422.18 20091201 3.46 AA+ Aaa AAA 31417YKF3 FNMA POOL #MA0293 4 1/2% Due 1/1/2030 Mo-1 149,649.98 153,987.49 153,255.50 160,955.82 20091211 3.69 AA+ Aaa AAA 31417YM95 FNMA POOL #MA0383 4 1/2% Due 4/1/2030 Mo-1 82,723.35 84,959.49 84,620.30 89,042.62 20100226 3.67 AA+ Aaa AAA 31417YMB0 FNMA POOL #MA0353 4 1/2% Due 3/1/2030 Mo-1 76,483.20 78,395.27 78,100.25 82,332.69 20100216 3.73 AA+ Aaa AAA 31417YQP5 FNMA POOL #MA0461 4 1/2% Due 7/1/2030 Mo-1 124,841.29 129,912.96 129,214.57 134,386.96 20100621 3.30 AA+ Aaa AAA 31418AF29 FNMA POOL #MA1084 3 1/2% Due 6/1/2032 Mo-1 243,186.98 256,942.23 255,318.62 252,938.21 20120621 2.26 AA+ Aaa AAA 31418ALT3 FNMA POOL #MA1237 3% Due 11/1/2032 Mo-1 296,743.89 311,998.37 310,093.32 302,787.09 20121101 2.04 AA+ Aaa AAA 31418AY69 FNMA POOL #MA1632 3 1/2% Due 10/1/2023 Mo-1 331,772.72 349,838.78 345,792.19 345,779.20 20140106 1.70 AA+ Aaa AAA 31418MUR1 FNMA POOL #AD0591 MEGA 5% Due 12/1/2039 Mo-1 240,584.66 249,456.23 248,878.53 265,830.74 20100120 3.97 AA+ Aaa AAA 31418NFF2 FNMA POOL #AD1065 4% Due 3/1/2025 Mo-1 81,674.92 85,694.87 84,621.52 86,117.97 20100825 2.53 AA+ Aaa AAA 31418PS71 FNMA POOL #AD2341 4 1/2% Due 3/1/2040 Mo-1 112,511.36 117,310.68 117,051.63 121,230.05 20110603 3.28 AA+ Aaa AAA 31418WKK5 FNMA POOL #AD8397 4 1/2% Due 8/1/2040 Mo-1 129,019.83 133,968.94 133,673.18 138,767.09 20100810 3.45 AA+ Aaa AAA 31419AN52 FNMA POOL #AE0411 4 1/2% Due 9/1/2040 Mo-1 328,886.39 343,198.10 342,416.84 355,522.45 20101116 3.26 AA+ Aaa AAA 31419AX93 FNMA POOL #AE0703 3 1/2% Due 12/1/2025 Mo-1 153,289.76 161,337.48 159,529.26 159,991.30 20111208 2.00 AA+ Aaa AAA 31419BYQ2 FNMA POOL #AE1618 4% Due 10/1/2040 Mo-1 107,702.10 111,404.35 111,186.61 113,215.47 20101006 3.06 AA+ Aaa AAA 31419E6N4 FNMA POOL #AE4476 4% Due 3/1/2041 Mo-1 410,806.67 444,762.42 442,908.85 433,632.55 20120828 2.32 AA+ Aaa AAA 31419EJ83 FNMA POOL #AE3886 4 1/2% Due 11/1/2040 Mo-1 147,453.80 152,384.27 152,080.29 158,977.31 20101202 3.65 AA+ Aaa AAA 34354PAC9 FLOWSERVE CORP SENIOR UNSECURED NOTES 3 1/2% Due 9/15/2022 MS15 500,000.00 518,275.00 517,705.08 501,206.50 20161025 2.79 BBB Baa2 BBB 34530NAA5 FORD CREDIT AUTO OWN TR 2014-2 ABS SER.2014-2 CL.A 2.31% Due 4/15/2026 Mo-15 750,000.00 767,050.78 765,533.97 756,272.48 20160920 1.55 NR Aaa AAA 34530UAA9 FORD CREDIT AUTO OWNER 2016-1 ABS SER.2016-1 CL.A 2.31% Due 8/15/2027 Mo-15 500,000.00 511,386.72 510,681.61 499,029.20 20160920 1.78 AAA NR AAA 36202E4J5 GNMA POOL #004425 5 1/2% Due 4/20/2039 Mo-1 89,799.62 92,886.47 92,711.43 99,462.01 20090629 4.40 AA+ Aaa AAA 36202EGR4 GNMA POOL #003808 6% Due 1/20/2036 Mo-1 127,295.52 130,119.87 129,771.11 146,634.79 20071127 5.50 AA+ Aaa AAA 36202ETU3 GNMA POOL #004163 5 1/2% Due 6/20/2038 Mo-1 3,106.97 3,183.66 3,180.71 3,275.75 20081218 3.19 AA+ Aaa AAA 36202EV71 GNMA POOL #004238 5 1/2% Due 9/20/2038 Mo-1 9,337.16 9,293.37 9,292.49 9,845.07 20081007 5.66 AA+ Aaa AAA 36202FEH5 GNMA POOL #004636 4 1/2% Due 2/20/2040 Mo-1 118,614.72 125,583.33 125,277.32 127,839.72 20101028 2.59 AA+ Aaa AAA 36202FLP9 GNMA POOL #004834 4 1/2% Due 10/20/2040 Mo-1 131,887.20 139,697.38 139,318.08 142,729.51 20101028 2.86 AA+ Aaa AAA 3620A6CS4 GNMA POOL #720181 4% Due 7/15/2039 Mo-1 240,293.84 257,865.33 257,193.18 255,135.61 20130530 2.00 AA+ Aaa AAA 3620ANGZ7 GNMA POOL #734716 4 1/2% Due 4/15/2040 Mo-1 122,159.99 128,726.08 128,405.52 132,235.29 20100927 2.95 AA+ Aaa AAA 36225BQ68 GNMA POOL #781377 6% Due 9/15/2029 Mo-1 44,761.64 46,496.14 46,084.60 51,960.57 20021220 5.09 AA+ Aaa AAA 36225CYE0 GNMA POOL #80708 Adj % Due 7/20/2033 Mo-1 12,154.55 12,215.31 12,197.65 12,613.41 20031216 2.04 AA+ Aaa AAA 38375CVV9 GNMA CMO SER.2012-43 CL.VA 3 1/2% Due 7/20/2023 Mo-1 473,296.57 510,716.60 488,943.88 497,602.48 20120327 1.86 AA+ Aaa AAA 438516BM7 HONEYWELL INTERNATIONAL INC SENIOR UNSECURED GLOBAL NOTES1.85% Due 11/1/2021 MN1 500,000.00 499,975.00 499,971.03 488,615.00 20161024 1.85 A A2 NR 48125LRG9 JP MORGAN CHASE BANK NA SENIOR UNSECURED NOTES 1.65% Due 9/23/2019 MS23 750,000.00 749,235.00 749,296.40 742,539.75 20160920 1.69 A+ Aa3 AA- 50077LAJ5 KRAFT HEINZ FOODS CO SENIOR UNSECURED GLOBAL NOTES3 1/2% Due 7/15/2022 JJ15 500,000.00 530,435.00 529,219.80 507,552.50 20161004 2.34 BBB- Baa3 BBB- 501044DD0 KROGER CO SENIOR UNSECURED GLOBAL NOTES1 1/2% Due 9/30/2019 MS30 500,000.00 499,755.00 499,771.09 492,402.00 20160926 1.52 BBB Baa1 BBB 539830AY5 LOCKHEED MARTIN CORP SENIOR UNSECURED GLOBAL NOTES3.35% Due 9/15/2021 MS15 500,000.00 527,170.00 526,500.79 516,340.00 20161110 2.16 BBB+ Baa1 BBB+ 60920LAA2 MONDELEZ INTL HLDINGS NE SENIOR UNSECURED NOTES 1 5/8% Due 10/28/2019 AO28 400,000.00 399,136.00 399,163.26 392,116.80 20161019 1.70 BBB A3 BBB 61746BED4 MORGAN STANLEY SENIOR UNSECURED NOTES 2 5/8% Due 11/17/2021 MN17 500,000.00 497,445.00 497,495.19 493,981.00 20161114 2.74 BBB+ A3 A





Cusip Par Value Purchase Price Book Value Market Value * Purchase Date Book Yld S&P ** Moody's Fitch'sDescription62888VAA6 NCUA GTD NOTES TRUST 2010-R1 CMO FLOAT SER.2010-R1 CL.1A Flt % Due 10/7/2020 Sched 474,150.91 477,410.70 479,829.78 474,695.05 20131211 0.50 AA+ Aaa AAA 649083AA0 NEW VALLEY GENERATION I SECURED PASS THRU CERTS 7.299% Due 3/15/2019 MS15 511,479.10 596,896.11 544,781.97 541,048.78 20140325 1.54 AA- Aaa NR 760759AL4 REPUBLIC SERVICES INC NOTES 3.8% Due 5/15/2018 MN15 500,000.00 513,590.00 513,322.26 513,903.00 20161216 1.82 BBB+ Baa3 BBB 771196BM3 ROCHE HLDGS INC SENIOR UNSECURED NOTES 1 3/4% Due 1/28/2022 JJ28 500,000.00 498,170.00 498,220.63 480,518.50 20161024 1.82 AA A1 AA 90864QAB4 UNION 13 LEASING LLC SECURED NOTES 1.682% Due 12/19/2024 MJSD 343,910.47 343,910.47 343,910.47 334,796.15 20130109 1.69 NR NR NR 913017CG2 UNITED TECHNOLOGIES CORP SENIOR UNSECURED GLOBAL NOTES1.95% Due 11/1/2021 MN1 250,000.00 249,442.50 249,457.52 245,066.00 20161027 2.00 A- A3 A- 92242PAA7 VCH LEASE S A SECURED NOTES 1.736% Due 5/15/2025 FMAN 437,070.55 437,070.55 437,070.55 425,586.52 20130508 1.74 NR NR NR 92261UAA2 VENDEE MORTGAGE TRUST CMO SER.2008-1 CL.GD 5 1/4% Due 1/15/2032 Mo-1 647,660.11 649,658.78 647,615.92 689,973.49 20080417 5.21 AA+ Aaa AAA 92261WAB6 VENDEE MORTGAGE TRUST CMO SER.2011-1 CL.DV 3 3/4% Due 6/15/2022 Mo-1 272,217.45 281,872.65 276,824.01 286,399.98 20110414 3.08 AA+ Aaa AAA 92261XAA6 VENDEE MORTGAGE TRUST CMO SER.2010-1 CL.DA 4 1/4% Due 2/15/2035 Mo-1 186,444.43 189,838.30 187,536.78 191,904.29 20100415 3.88 AA+ Aaa AAA 92262BAA3 VENDEE MORTGAGE TRUST CMO SER.2011-2 CL.DA 3 3/4% Due 12/15/2033 Mo-1 204,550.04 214,809.51 208,972.84 209,248.06 20111014 2.56 AA+ Aaa AAA 98956PAK8 ZIMMER BIOMET HOLDINGS INC SENIOR UNSECURED GLOBAL NOTES2.7% Due 4/1/2020 AO1 500,000.00 511,380.00 510,579.33 500,025.00 20161003 2.01 BBB Baa3 NR 98978VAG8 ZOETIS INC SENIOR UNSECURED GLOBAL NOTES1 7/8% Due 2/1/2018 FA1 500,000.00 500,900.00 500,805.70 499,998.50 20161108 1.72 BBB Baa2 NR

85,059,335.57 88,064,586.98 87,557,057.84 87,249,941.33 2.25Cash, Short Term & Other *** 1,665,539.28 1,665,539.28 1,665,539.28 1,665,539.28 0.31

257 Number of Long Term Securities 86,724,874.85 89,730,126.26 89,222,597.12 88,915,480.61 Book Yield 2.22 0.022155Annual Eff. Yield 2.23

**Attribution Statement:

For fixed income securities, regardless of whether the price is sourced from our independent pricing services or the fair value procedures of the Company, fair value determinations involve judgments that are inherently subjective. These determinations are made in good faith and in accordance with procedures adopted by the independent pricing services or the Company. Factors used in the determination of fair value may include but are not limited to market data incorporating available trade, and bid and other market information, such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. Model processes, such as the Option Adjusted Spread model, are used to develop prepayment and interest rate scenarios. Pricing evaluators gather information from market sources and integrate relevant credit information, perceived market movements, and sector news into the evaluated pricing applications and models. These policies are intended to assure the Portfolio’s valuation fairly reflects security values at the time of pricing.

* Fixed income and other securities are valued by independent pricing services approved by Great-West Life & Annuity Insurance Company (“the Company”). In some instances, valuations from independent pricing services are not available or do not reflect significant events in the market therefore fair valuation procedures are implemented by the Company.

*** Cash, Short Term & Other includes cash, short-term investments, interest receivable, cash and/or securities received as collateral, receivable for cash posted as collateral, receivable for investments sold, collateral payable to counterparties, contract transactions receivable, payable for investments purchased, contract transactions payable and miscellaneous other receivable/payables, as applicable.

“This may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Reproduction and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.”



Glossary

Agency Securities:

Amortization of Realized Gains/Losses:Amortization of the Difference Between Assets and Liabilities:Asset Backed Securities (ABS):

Average Life:

Average Maturity:

Book Value Assets:

Book Value Liabilities:Collateralized Mortgage Obligations (CMO):Commercial Mortgage Backed Securities (CMBS):Corporates:Credit QualityCrediting RateDuration:FGLMC:FHLMC:FNMA:GNMA:GSE:Investment Grade:Investment GuidelinesMarket Value Assets:Mortgage Backed Securities (MBS):

Nationally Recognized Statistical Ratings Organization (NRSRO)

Par Value:Purchase Price:Treasury Notes:Vendee:

Yield To Maturity

A firm that evaluates the financial quality of an institution's debt, the claims paying ability of life insurance companies, and/or the deposit credit rating of banks. Examples of NRSROs include Standard & Poor's (S&P), Moody's Investors Service, and Fitch Ratings. For a list of all NRSROs, please visit www.sec.gov/divisions/marketreg/ratingagency.htm.Maturity value of the security.Original purchase price of the security less any reductions from principal payments.Intermediate securities issued by the United States Government with maturities of 1 to 10 years.Veterans Administration Mortgage.The rate of return anticipated on a security if it is held until the maturity date. The calculation takes into account the current market price, par value, coupon interest rate and the time to maturity and assumes that all coupons are reinvested at the same rate.

Government National Mortgage Association. Nicknamed Ginnie Mae.Government Sponsored EntityA security judged likely enough to meet payment obligations that banks are allowed to invest in it.Guidelines established between a plan sponsor or trustee and an investment manager that dictate the investment parameters and risk The cash value of a security could be sold for at a given price on the open market. Prices are determined by independent pricing services.An asset backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans.

The measure of the financial soundness of an institution, indicating its ability to honor its financial obligations in a timely manner.The interest rate applied to the book value of the stable value fund liabilities, expressed as an effective annual yield.A theoretical measurement developed by Professor Frederic Macauley that measures the sensitivity of a financial instrument to changes in Federal Home Loan Mortgage Corporation - Gold pool. Nicknamed Freddie Mac.Federal Home Loan Mortgage Corporation. Nicknamed Freddie Mac.Federal National Mortgage Association. Nicknamed Fannie Mae.

The number of years until a bond pays back its principal.The amount owed by the issuer of the security to the security holder on behalf of the plan participants, subject to certain terms and conditions.The value of deposited principal, plus accrued interest, minus withdrawals and expenses

Mortgage backed bonds that separates mortgage pools into different maturity classes.

An asset backed security whose cash flows are backed by the principal and interest payments of commercial or multifamily property mortgage loans.A debt instrument issued by a private Corporation whose cash flows are backed by the issuing organization.

GlossaryDebt instruments issued by an agency of the Federal government. Though not general obligations of the U.S. Treasury such securities are sponsored by the government and therefore have high safety ratings.If applicable, The process of recognizing realized gains or losses that occurred due to the sale of assets or prepayment of securities that were faster or slower than expected via the crediting rate. Amortization period is typically the average duration of the portfolio.If applicable, the process of recognizing differences between what the fund has earned and the interest that was credited from inception to the statement date via the crediting rate. Amortization period is the average duration of the portfolio.A debt security whose cash flows are backed by a pool of receivables or other financial assets.

The average expected maturity date of the securities based on current pre-payment speeds and determined by an outside organization.



Managed Account statistics

Gwinnett County

December 31, 2016

Managed Account statistics – 401(a) Plan

Managed Accounts Others

Participants with account balances 2,667 1,659

Assets $55,944,715.97 $117,274,275.10

Average Account balance $20,976.65 $70,689.74

Average Number of Investment Options per Participant: 12.152 2.882

Average Age 36.08 43.97

Gender Male: 1,742/Female: 925 Male: 968/Female: 689 (*)

Average Hire Date May 29, 2012 December 13, 2006

Selections within past six months (5/1/2016 – 11/1/2016) 214/265 (80.6%) 51/265 (19.2%)

Selections from one year ago (5/1/2015 – 11/1/2015) 228/332 ( 68.7%) 104/332 (31.3%)

(*) – Does not include 2 participants with unknown gender

Managed Account statistics – 457(b) Plan

Managed Accounts Others

Participants with account balances 2,669 2,918

Assets $24,705,192.62 $130,409,400.90

Average Account balance $9,256.35 $44,691.36

Average Number of Investment Options per Participant: 12.253 3.150

Average Age 36.67 49.24

Gender Male: 1,769/Female: 900 Male: 1,906/Female: 1,006 (*)

Average Plan Entry Date August 11, 2011 April 24, 2000 (**)

Selections within past six months (6/1/2016 – 11/30/2016) 155/195 (79.5%) 40/195 (20.5%)

Selections from one year ago (6/1/2015 – 11/30/2015) 209/298 (70.1%) 89/298 (29.9%)

(*) – Does not include 6 participants with unknown gender (**) – Does not include 130 participants with no Plan Entry Date on file

Gwinnett County Defined Benefit Plan

February 23, 2017

Alisa Bennett, FSA, EA, FCA, MAAA

About Projections

2

Annual actuarial valuations are a “snapshot” of the financial position on the valuation date, based on the existing active and retired members.

Projections simulate future actuarial valuation results over a forecast period by “creating” future new hires and performing valuations using the projected membership.

Projections provide information on trends in financial measurements. They do not provide absolute results.

About Projections (continued)

3

Assumptions and methods used in the projection are the same as those used in the 1-1-2016 valuation. Including Assumed rate of return for all years is

7.00%. Amortization period is a closed 17-year

period beginning with the 1-1-2016 valuation

Projected Head Count

4

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

1/1 Valuation Date Active Members Inactive Members

Projected Compensation

5

0

20

40

60

80

100

120

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ M

illio

ns

1/1/ Valuation Date Class A - Pre-Amended Pension Plan Class B - 1995 Amended Pension Plan

Class C - Adopted November 1, 2004

Projected Benefit Payments

6

0

20

40

60

80

100

120

140

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

2046

2048

2050

2052

2054

2056

2058

2060

2062

2064

2066

2068

2070

2072

2074

$ M

illio

ns

1/1/ Valuation Date Projected Benefit Payments

10 Year Projections

7

Assumed rate of return for all years is 7.00% Based on 1-1-2016 Valuation Results

0

5

10

15

20

25

30

35

40

45

0

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ M

illio

ns

$ M

illio

ns

1/1 Valuation Date

Actuarial Value of Assets Unfunded Accrued Liability ER Contribution

Projected Cash Flows

8

-120,000

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ Th

ousa

nds

1/1 Valuation Date

EE and ER Contributions Benefit PaymentsAdministrative Expenses Net Cash Flow

Assumed rate of return for all years is 7.00% Based on 1-1-2016 Valuation Results Does not include additional investment related expenses

9

Scenarios

10 Year Projections Earn 8% Rate of Return

10


0

5

10

15

20

25

30

35

40

0

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ M

illio

ns

$ M

illio

ns

1/1 Valuation Date


Projected Cash Flows Earn 8% Rate of Return

11

-120,000

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ Th

ousa

nds

1/1 Valuation Date



10 Year Projections Earn 6% Rate of Return

12


34

35

36

37

38

39

40

41

42

43

44

45

0

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ M

illio

ns

$ M

illio

ns

1/1 Valuation Date


Projected Cash Flows Earn 6% Rate of Return

13

-120,000

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ Th

ousa

nds

1/1/ Valuation Date



10 Year Projections Actuarially Determined Contributions

14


0

5

10

15

20

25

30

35

40

45

50

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ M

illio

ns

1/1 Valuation Date

Earn 8% Earn 7% Earn 6%

Closed Plan Projections

15

Gwinnett County Defined Benefit Plan is closed to new entrants

The “ideal” situation would occur if the trust runs out of the money at the same time as the last retired member passes away

Since the Plan is closed to new entrants, negative cash flow will continue to persist

Management of the negative cash flow is crucial to meet the “ideal” situation previously mentioned

Closed Plan Projections

16

Portfolio will need to evolve over time to meet liquidity requirements which may involve more exposure to fixed income securities compared to equity securities which may diminish the amount of investment return the Plan can be expected to earn

10 Year Projections Reduce Assumed Rate of Return

17

Assumed rate of return is reduced from 7.00% to 6.00% in 0.10% increments Based on 1-1-2016 Valuation Results

0

10

20

30

40

50

60

0

200

400

600

800

1,000

1,200

1,400

1,600

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ M

illio

ns

$ M

illio

ns

1/1 Valuation Date


Projected Cash Flows Reduce Assumed Rate of Return

18

-120,000

-100,000

-80,000

-60,000

-40,000

-20,000

0

20,000

40,000

60,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

$ Th

ousa

nds

1/1/ Valuation Date EE and ER Contributions Benefit PaymentsAdministrative Expenses Net Cash Flow

Assumed rate of return is reduced from 7.00% to 6.00% in 0.10% increments Based on 1-1-2016 Valuation Results Does not include additional investment related expenses

STATEMENT OF INVESTMENTOBJECTIVES AND GUIDELINES

GWINNETT COUNTY PUBLIC EMPLOYEESRETIREMENT SYSTEM

INTRODUCTION

The Gwinnett County Board of Commissioners (“GCBC”) has created the Gwinnett CountyPublic Employees Retirement System (the “GCPERS”) as the umbrella organization to governand administer its local pension, other post-employment benefits (OPEB), and retirement savingsprograms. The GCPERS is intended to meet the statutory requirements applicable to publicretirement systems.

The Retirement Plans Management Committee (“RPMC”) acts as the Trustee of the GwinnettCounty Defined Benefit Plan (the “Plan”) and the Gwinnett County Defined Benefit Plan MasterTrust (the “Trust”) established by GCBC under the GCPERS in accordance with and subject tothe terms, conditions and provisions set forth in the Plan and Trust. The RPMC also serves asthe Trustee of the Gwinnett County OPEB Trust (the “OPEB Trust”), which was established byGCBC for the purpose of pre-funding other post-employment benefits provided under its welfarebenefit plans in accordance with statements issued by the Governmental Accounting StandardsBoard (GASB).

The Plan is managed by the RPMC (the “Trustees” or “Committee”) established by the GwinnettCounty Board of Commissioners under the GCPERS. The address of the Plan is 75 LangleyDrive, Lawrenceville, Georgia 30046-6935. The Trustees retain the services of a third-party toadminister the Plan.

Plan assets are held, managed, invested and reinvested by the Trustees in accordance with thisStatement of Investment Objectives and Guidelines (the “Statement”) and with an investmentmanagement agreement between the RPMC and one or more asset managers. OPEB Trust assetsshall also be held, managed, invested and reinvested by the Trustees in accordance with thisStatement and shall be treated in the same manner as Plan assets for purposes of this Statement.An investment consulting firm has been retained to assist the Plan in the attainment of itsobjectives and to monitor compliance with the adopted objectives and guidelines.

The duties and responsibilities of the Trustees, some of which are delegated to administrators,asset managers, investment advisors and others, include the following:

Determining the date to make contributions to the Plan to cover operating costs and toA.maintain the Plan on a sound actuarial basis;

Using and applying the assets of the Plan for the payment of all reasonable and necessaryB.expenses of administering the Plan;

Revised 52/20142017

Revised 52/20142017 2 GWINNETT COUNTY PUBLIC EMPLOYEESRETIREMENT SYSTEMGWINNETT COUNTY PUBLIC EMPLOYEESRETIREMENT SYSTEM

Contracting with a vendor for funding purposes or to provide pension benefits to PlanC.participants;

Maintaining the Plan in compliance with all applicable federal and state regulationsD.concerning the management and conduct of the pension trust funds;

Designating a Custodian bank to receive all Plan deposits;E.

Investing that portion of the Plan that is not needed for current expenditures;F.

Having the books and records of all Trustee transactions audited annually; andG.

Periodically contracting for an independent actuarial review.H.

In addition, the Trustees have certain duties and powers that they alone may exercise, including,among others:

The duty to elect from their members a Chairman and Vice Chairman and to appoint aA.member to the Audit Committee;

The power to recommend removal of another Trustee;B.

The power to construe the provisions of the Plan documents;C.

The power to contract with administrators to provide actuarial, accounting, legal andD.administrative services and to maintain books, records and other data necessary for theproper administration of the Plan;

The power to contract with consultants, administrators, and investment advisors and hireE.asset managers and Investment Managers to provide services related to the investment ofPlan assets; and

The power to promulgate rules and regulations for the sound and efficient administrationF.of the Plan.

Whether or not the duties or responsibilities are delegated, the Trustees are responsible for thesound and efficient operation of the Plan and for administering the Plan for the exclusive benefitof the Plan’s participants and beneficiaries.

PURPOSE

The purpose of this Statement is to set forth investment policies, objectives, and guidelineswhich the RPMC judges to be appropriate and prudent for the management of Plan assets, inconsideration of the needs of the Plan’s participants and beneficiaries and in compliance with thePublic Retirement Systems Investment Authority Law, O.C.G.A. § 47-20-80 et seq. The


Statement is to assist the RPMC in more effectively supervising and monitoring the investmentprogram of the Plan.

In the various sections of this Statement, the Trustees of the Plan define this investment programby:

Stating the Trustees’ attitudes, expectations and objectives in the investment of the PlanA.assets;

Providing guidelines for the investment portfolio that control the level of risk assumedB.and ensures that assets are managed in accordance with stated objectives;

Encouraging effective communication between the Trustees, the Plan Administrator, theC.investment advisors (the “Consultant”), and the Investment Managers; and

Establishing criteria to monitor and evaluate the performance results achieved by theD.Investment Managers.

STATEMENT

This Statement represents the Trustees’ current philosophy regarding the investment of the Planassets. In addition, although the Trustees shall utilize this Statement in making decisionsconcerning the Plan, it shall not necessarily be bound solely by its contents. This Statement is ameans of achieving the Plan’s goals and meeting the Plan’s obligations for benefits.

The primary asset classes of the investment portfolio will be:

CashA.

Cash levels will vary with a zero (0) percent target but with an allocation range of zero(0) percent to five (5) percent.

Fixed Income PortfolioB.

To obtain a favorable total return on invested assets through a “liquid” diversifiedportfolio of high quality income-producing assets, which stress preservation of capitaland income.

Equity PortfolioC.

To obtain a favorable total rate of return on invested assets and to provide long-termgrowth through a diversified portfolio of equity securities.


Alternative InvestmentsD.

The Plan may invest up to five (5) percent of its total assets in certain “alternativeinvestments,” as defined in O.C.G.A. § 47-20-87, to obtain a favorable total rate of returnon invested assets consistent with their respective risk.

The investment portfolio is designed to balance the risk of the investment instruments withprojected growth and income in order to meet the policy objectives.

OBJECTIVES

The objectives of the Statement are as follows:

To optimize the long-term return on Plan assets at an acceptable level of risk;A.

To maintain a broad diversification across asset classes;B.

To maintain careful control of the risk level within each asset class;C.

To focus on a long-term return objective; andD.

To satisfy all fiduciary and other controlling laws and regulations.E.

These objectives shall be accomplished using a portfolio of investments that the Trustees feel isconducive to participation in rising markets while allowing for adequate protection in fallingmarkets. It is the intention of the Trustees to give each Investment Manager full investmentdiscretion with the exception of any restrictions specifically noted to each Investment Managerand those detailed in the following paragraphs.

Operating Cash: The balance maintained within the operating cash account shall beI.synchronized with the projected uses and contributions to and from the trust. The lowest cashbalance target will be projected on a rolling month to month basis over a twelve (12) monthhorizon with the intent to minimize the requirement to conduct non-scheduled investmentcalls where realized losses may occur, and to maximize the returns which may be receivedthrough active management. The intent of the operating cash account is not to build the trustassets or balances; rather, it shall be structured in a manner that will provide sufficientliquidity to pay obligations such as normal operating expenses and benefit obligations. Theamount maintained with the operating cash account shall not be included in the computationof the target asset allocation.

Cash: Target Allocation –– zero (0) percent (including short term cash investments). As aII.result of normal market movements and cash flows to and from the Trust, the asset mix isexpected to fluctuate around the allocation. A maximum upward deviation of five (5)percentage points from the target is an acceptable range and in accordance with theseguidelines. A targeted allocation combined with a permissible allocation range shall be used in


efforts to control risk and maximize the effectiveness of the Plan’s asset allocation strategy,while minimizing portfolio turnover.

Categories of Investment SecuritiesA.

U.S. Treasury Bills;1.

Short-term U.S. Government/Agency obligations;2.

High Grade Commercial Paper rated by Moody’s (P-1) and Standard &3.Poor’s (A-1);

Other Dollar Denominated Money Market Instruments including foreign4.investments purchased shall be rated as acceptable investments;

Repurchase Agreements of U.S. Government or Agency Securities (the5.Plan must take possession of the collateral);

Money Market funds rated by Standard & Poor’s as acceptable6.investments; and

Futures, options or other instruments designed to manage risk exposure.7.

Investment RestrictionsB.

The maximum amount that may be invested in the securities of an1.individual issuer not backed by the full faith and credit of the U.S.Government or a federally sponsored agency is five (5) percent of theassets of the portfolio.

Leverage techniques, private placements, short techniques or any direct2.participation plans cannot be used.

All investments must be eligible investments under the Public Retirement3.Systems Investment Authority Law, O.C.G.A. § 47-20-80 et seq.

Fixed Income Portfolio: Target Allocation –– forty (40) percent (including short term cashIII.investments). As a result of normal market movements and cash flows to and from the Trust,the asset mix is expected to fluctuate around the allocation target. A maximum deviation often (10) percentage points from the target (in either direction) is an acceptable range and inaccordance with these guidelines. A targeted allocation combined with a permissibleallocation range shall be used in efforts to control risk and maximize the effectiveness of thePlan’s asset allocation strategy, while minimizing portfolio turnover.


PolicyA.

The objective is to obtain a favorable total return utilizing various classes ofinvestment grade fixed income securities.

Performance GuidelinesB.

The total return on the portfolio should be judged against the total return1.of a representative bond index (net of fees) over each trailing three (3) andfive (5) year period or market cycle.

In addition, it is expected that an Investment Manager’s fixed income2.returns will rank above the median (50th percentile) versus arepresentative database over each rolling three (3) to five (5) year period ormarket cycle.

Investment RestrictionsC.

All fixed income securities shall be of “Investment Grade” or higher1.quality as defined by Moody’s, Standard & Poor’s, or Fitch. If anysecurity’s rating falls below Investment Grade by two (2) or more ratingservices, the Investment Manager shall promptly inform the Trustees inwriting of the intended disposition of the security. The disposition shouldoccur within ninety (90) days of the downgrade unless directed otherwiseby the Trustees.

No more than five (5) percent of the portfolio may be invested in any2.single corporate issue.

Leverage, private placements, shorting securities or any direct3.participation plans cannot be used.


Categories of Investment SecuritiesD.

U. S. Treasury securities;1.

U. S. Government agency obligations;2.

Mortgage-related securities;3.

Corporate debt (including asset-backed) securities;4.

Taxable state and municipal securities;5.


Foreign (including emerging market debt) securities;6.

High quality Guaranteed Investment Contracts (GICs) (AA or better as7.rated by A. M. Best);

Futures, options or other instruments designed to manage risk exposure;8.and

Exchange Traded Funds (ETFs).9.

Equity Portfolio: Target Allocation – sixty (60) percent. As a result of normal marketIV.movements and cash flows to and from the Trust, the asset mix is expected to fluctuate aroundthe allocation target. A targeted allocation combined with a permissible allocation range shallbe used in efforts to control risk and maximize the effectiveness of the Plan’s asset allocationstrategy, while minimizing portfolio turnover.

PolicyA.

Growth of capital and surplus is sought primarily through equity investments in adiversified common stock portfolio.

Percent of PortfolioB.

As a result of normal market movements and cash flows to and from the Trust, theasset mix is expected to fluctuate around the allocation target. Generally, amaximum deviation of ten (10) percentage points from the target allocation (ineither direction) is an acceptable range and in accordance with these guidelines.Notwithstanding the foregoing, the maximum permissible allocation of the Plan’sassets in equities shall be the limit applicable to “large retirement systems” inO.C.G.A. § 47-20-84.

Performance GuidelinesC.

This portion of the portfolio will be judged against the benchmark1.established for each asset class (net of fees) over each trailing three (3) andfive (5) year period or market cycle or another appropriate benchmarkwhich more closely resembles the overall character of the InvestmentManager’s equity portfolio.

In addition, it is expected that an Investment Manager’s equity returns will2.rank above the median (fiftieth percentile) (50th percentile) versus arepresentative database over each trailing three (3) and five (5) year periodor market cycle.


Investment RestrictionsD.

For diversification purposes, no more than five (5) percent of each1.Investment Manager’s equity portfolio shall be invested in any one issue atinitial purchase. In addition, no individual security position shall exceedten (10) percent of an Investment Manager’s total equity portfolio assetmarket value. REIT portfolio manager(s) shall be allowed to invest up toten (10) percent of their portfolio in any one issue based on cost value.Commingled investment vehicles, such as mutual funds, are exempt fromthis restriction.

There shall be no purchase that would cause a position in the portfolio to2.exceed five (5) percent of the issue outstanding, based on cost value.

There shall be no investments in non-marketable or illiquid securities.3.

Each Investment Manager may employ market-timing decisions through4.cash management.

Leverage techniques, private placements, short techniques or any direct5.participation plans cannot be used.


Categories of Investment SecuritiesE.

Domestic common stocks;1.

Foreign common stocks traded on U. S. Exchanges;2.

Convertible preferred and convertible debt securities;3.

Futures, options or other instruments designed to manage risk exposure;4.

Exchange Traded Funds (ETFs);5.

Open and closed end mutual funds; and6.

Commingled funds and trusts.7.

Alternative Investments: The Plan may invest in “alternative investments,” as defined inV.O.C.G.A. § 47-20-87. Alternative investments will not in the aggregate exceed five (5)percent of the total assets of the Plan (determined on the basis of the assets’ aggregatehistorical cost). Investment vehicles such as privately placed investment pools (structured as apartnership, limited liability company, trust, corporation, joint venture, or other entity orinvestment vehicle of any type) may be used to invest in venture capital, real estate, private


equity, hedge funds and other types of alternative investments permitted by O.C.G.A. §47-20-87.

The nature of such investing calls for a longer-term investment horizon than that of other fundinvestments. It is expected that certain investments may initially be illiquid in nature, mayrequire a lock-up period, and that the return of capital and profits will generally occur betweenfive and ten years after the initial investment. The annualized returns provided by theseinvestments are expected to be consistent with their respective risk. Each vehicle should bediversified to avoid large losses.

Alternative Investment RestrictionsA.

Alternatives investments shall be made in accordance with O.C.G.A. §1.47-20-87.

An alternative investment shall not exceed in any case 20% of the2.aggregate amount of:

The capital to be invested in the applicable private pool, includinga.all parallel pools and other related investment vehicles establishedas part of the investment program of the applicable private pool;and

The securities being issued in each case determined at time suchb.alternative investment is initially either made or committed to bemade, as applicable but taking into consideration any investmentthat have previously been or are concurrently being made orcommitted to be made.

The investment shall have at least four other investors not affiliated with3.the issuer.

The issuer shall have at least $100 million in assets, including committed4.capital, at the time the investment is initially made or committed.

ASSET ALLOCATION

Asset Allocation PolicyI.

An asset allocation/liability study will be conducted periodically to determine an appropriateasset mix and investment management structure designed to maximize long-term investmentreturns while minimizing investment risk. Specific asset allocation policies will be addressedwhenever the members of the RPMC, the Investment Committee or the Consultant deemsnecessary. Some specific occurrences which might prompt the RPMC to review the assetallocation policy would include:

Changes in state law or new legislation or regulations;1.

Changes in funding level of the Plan or changes in Actuarial methods;2.

Changes in Plan demographics or benefit design;3.

Changes in prospects for County revenue growth, growth of work force or employee4.salaries; and

Changes in capital markets, interest rates, the outlook for future asset class returns or5.availability of new asset classes.

Target Asset AllocationsII.

The Asset class targets and ranges will be based on market values. The RPMC recognizes that arigid asset allocation would be both impractical and undesirable under various market conditions.Therefore, the allocation of the Plan’s assets may vary from time to time within the followingranges, without being considered an exception to this investment policy.

Asset Class Target Range Benchmark

US Large Cap 25.0% 20% - 35% Russell 1000

US Mid Cap 7.5% 5% - 15% Russell Mid Cap Index

US Small Cap 7.5% 5% - 15% Russell 2000 Index

International 15% 10% - 25% MSCI ACWI ex U.S.*

Real Estate 5% 0% - 15% NAREIT Equity Index

Fixed Income 35% 25% - 50% BarCap Aggregate *

International Fixed IncomeExcluding U.S.

5% 0% - 15% Citigroup WGBI ex U.S.

Alternative Investments 0% 0% - 5% To be determined by the Consultant

Cash 0% 0% - 5% Citigroup – 3-Month Treasury Bill

Total 100%


*Or any other appropriate index that best fits an investment manager’s style and objective.

In order to keep the Plan in-line with the defined asset allocation targets and ranges (as definedby this policy), the Investment Committee will review the asset allocation on a quarterly basis. Inthe event market fluctuation causes any portfolio allocation to fall outside of its target range, theInvestment Committee may take necessary action to rebalance. The preferred rebalancing toolshall be net cash flows if available, to minimize portfolio turnover and transaction costs. Therebalancing process may result in the movement of assets from recently strong performing assetclasses which may be highly valued into lower valued asset classes. Over the long-term, thisdiscipline is expected to enhance portfolio returns while reducing risk (volatility) by realizinggains in one asset class and using those funds to make additional purchases in the undervaluedasset class.


The RPMC may use passive investments for those asset classes where the asset class or theInvestment Managers have not been able to generate excess returns. These products includeindex funds and exchange traded funds (ETFs). Also, passive investment funds will be usedduring interim periods when Investment Managers have been terminated and active managersearches are being conducted.

RESPONSIBILITIES

Investment Managers shall:I.

Provide quarterly written documentation of portfolio activity, portfolio valuations,A.performance data, and other information as requested by the Plan Administrator, theRPMC, and the Consultant WITHIN THIRTY (30) DAYS OF THE END OF EACHCALENDAR QUARTER. Each Investment Manager’s quarterly report should includea summary of all executions, including transaction price, fees, and commissiondisclosure.

Report immediately to the Plan Administrator, Trustees, and Consultant, in writing, anyB.substantive changes in investment strategy, portfolio structure or portfolio manager, andmarket value of managed assets as well as significant changes in the ownership,affiliations, organizational structure, financial condition, professional personnel staffingand clientele of the investment management organization.

Submit a completed Form ADV (used to regulate Investment Advisors) on an annualC.basis to the Plan Trustees. If any changes are made to key personnel, ownership or anyother critical areas of the Investment Manager’s firm, a copy of the amended ADVshould be sent to the Plan Administrator, Trustees and Consultant within sixty (60) daysof the change.

D. Exercise prudent discretionary authority over the assets entrusted to the InvestmentManager, subject to these guidelines, objectives and restrictions.

E. VoteTo the extent that the responsibility for voting proxies is the responsibility of theInvestment Manager, vote all proxies and give a general summary report to the Trusteesof proxy voting activities on an annual basis and provide to the Trustees their guidelineson proxy voting activities. Investment Managers shall vote all proxies in accordancewith their fiduciary responsibilities to the Plan.

F. Acknowledge in writing the receipt of this Statement and the acceptance of its terms. Ifthe Investment Manager believes at any time that any changes, additions, or deletions tothe Statement are advisable, it will be the responsibility of the Investment Manager torecommend such changes, in writing, to the Plan Administrator, Trustees, andConsultant.


Comply with the Public Retirement Systems Investment Authority Law, O.C.G.A. §G.47-20-80 et seq., and specifically including the provision applicable to Large RetirementSystems found at O.C.G.A. § 47-20-84.


Acknowledge in writing that it is a fiduciary with respect to the Plan assets under itsH.management and certify in writing that it is either an investment advisor, bank, orinsurance company, which is qualified to be appointed as Investment Manager.

The RPMC shall:II.

Perform an annual review of this Statement and solicit input for any modifications orA.changes from the Consultant or the Investment Committee. Investment Managers willbe notified of revisions to the policy, and individual contracts with InvestmentManagers will be modified as needed to comply with any changes in the Statement.

Hire competent registered professional Investment Managers to manage the assets ofB.the Plan. This selection process shall include the establishment of specific searchcriteria, analysis, and due diligence review of potential managers, and interviews whenappropriate. Investment Managers must meet the following minimum criteria: (i)registered as an investment advisor as defined in the Investment Advisors Act of 1940,be a bank as defined in such Act, or be an insurance company qualified to perform theservices of Investment Manager under the laws of more than one state; (ii) historicalquarterly performance that complies with the parameters established in each search andconsistent with the investment strategy under consideration; and (iii) demonstratedfinancial and professional staff stability based on requisite historical companyinformation. No Investment Manager shall be hired who has not, by their record andexperience, demonstrated their investment experience, their fiduciary responsibility, andtheir capacity to undertake the mandate for which they are being considered.

Accept the specific investment guidelines or mandates appropriate to each InvestmentC.Manager established by the Consultant and approved by the Investment Committee ofthe RPMC. These guidelines will account for the unique characteristics of the assetclass, style, and strategies of each Investment Manager and shall be agreed to by eachInvestment Manager managing Plan assets. These mandates shall set return targets, riskmeasures, benchmarks, diversification standards and other matters appropriate to thespecific mandates.

Evaluate the performance of Investment Managers on an annual basis. PerformanceD.review will not only include the examination of investment returns, but the riskassumed to achieve those returns. Evaluation of overall investment returns shouldgenerally be over a longer (such as a three (3) year) period. Comparisons to appropriatebenchmarks, market indexes and manager indexes will be used to evaluate relativeperformance. Investment Managers will also be evaluated for adherence to thisStatement. Performance reviews will also focus on material changes in the InvestmentManager’s organization, such as philosophical and personnel changes, acquisitions orlosses of major accounts, etc.

Terminate Investment Managers whenever in the opinion of the RPMC:E.


Their performance has been inconsistent with the benchmarks established by1.their mandate either due to inadequate excess investment returns (net of fees)or a high level of risk. Decisions based on performance will be made onlyafter a full market cycle, typically three (3) to five (5) years, although theperiod may be shorter when severe underperformance or other evidence existthat suggests inconsistencies between the Investment Manager’s stated styleand the characteristics of investments actually made;

They have committed a significant breach of their mandate or directive, have2.breached a fiduciary duty, have experienced the loss of key personnel, changein ownership, consultant downgrade, or any other reasons that may cause aconcern to the RPMC. The RPMC may put an individual Investment Manageron a Watch List to monitor any deficiencies or items of concern about theInvestment Manager; or

Their investment management fees are not reasonable or otherwise not in line3.with industry standards.

Investment Managers may be terminated if there are any changes in the asset allocationstructure which may dictate or require a change in Investment Managers.

The Consultant will make a specific recommendation to the RPMC on the terminationof Investment Managers. This recommendation will be voted on by the InvestmentCommittee prior to submitting to the RPMC.

Hire a Consultant to regularly monitor the performance of Plan assets and provideF.quarterly reports that monitor performance of each Investment Manager and eachinvestment class. In addition, the Investment Advisor will monitor:

Each Investment Manager’s adherence to their investment objectives;1.

Comparison and ranking of each Investment Manager results to appropriate2.peers;

Portfolio characteristics that are not in line with the Investment Manager’s3.style or peer group style;

Changes in the portfolio managers or in key decision makers; and4.

Material changes in the Investment Manager’s organization, investment or5.professional personnel changes, acquisition or ownership changes, or loss ofaccounts.

Meet as often as needed with each Investment Manager for due diligence.G.


Develop investment objectives and performance measurement standards that areH.consistent with the financial needs of the Plan.

At its discretion and approval, make available a Securities Lending program to theI.Custodian. The objective will be to provide additional income to the Plan at anacceptable level of risk. Under the Program:

All loans shall be marked-to-market daily;1.

Collateral on each loan shall be at least one hundred (100) percent of loan2.value for domestic securities;

Acceptable collateral shall be in the form of cash, U.S. Government securities,3.or Letters of Credit; and

The Custodian will provide borrower default indemnification in the event that4.securities are not returned.

The Investment Committee will monitor the program on at least an annual basis.

Periodically review and evaluate investment results in the context of predeterminedJ.performance standards and implement corrective action as needed.

Periodically review fees, commissions and expenses, including but not limited toK.investment management, investment consulting, brokerage, transactional, banking, andcustodial.

To the extent that the responsibility for voting proxies is not the responsibility of theL.Investment Manager, the Investment Committee will determine the proper voting ofproxies related to the investment. Because the investment funds are prudently selectedand monitored, and underperforming investment funds are removed when necessary,the Investment Committee will usually vote in support of the management proposals inthe proxies. However, the Investment Committee will review the proxy statements forproposals which could be detrimental to the best interests of the Plan and itsparticipants and will vote the Plan’s shares against those proposals. For example, theInvestment Committee will generally vote against proposals which:

Increase the expenses of the investment fund.1.

Increase the risk of the investments in the investment fund.2.

Would result in a change to an investment style inconsistent with the objective 3.and targeted asset class for which the investment fund was chosen.

The Investment Consultant shall:III.


Assist in the development and implementation of investment policies, objectives andA.guidelines.

Prepare and present performance evaluation reports and attend Trustee meetings toB.present evaluation reports. Investment returns shall be compared to objectives andperformance benchmarks in conjunction with the Consultant’s presentation of results.The Consultant’s performance reporting will be quarterly or any interim time period asdesignated by the Trustees.

Review contracts and fees for both current and proposed Investment Managers.C.

Communicate investment objectives and guidelines to the Investment Managers.D.Periodically review their adherence to such policies, and to the extent possible, reportall violations to the Trustees.

Notify the Plan Administrator and the Trustees of any material changes in professionalE.personnel or ownership of the Consultant’s firm, as it relates to the Gwinnett CountyPublic Employees Retirement System.

Assist the Plan Administrator, Gwinnett County staff and Trustees with additionalF.projects as requested.

From information obtained from the Custodian and Investment Manager reports, adviseG.the Plan Administrator and the Trustees of substantive changes in the market value ofthe Plan’s total asset base and/or holdings of an Investment Manager as a result ofdramatic changes in market conditions.

WATCH LIST AND TERMINATION POLICY

The Watch List is a mechanism used by the Investment Committee and the RPMC to express itsgeneral discomfort with or loss of confidence in an Investment Manager. Discomfort may becaused by deficiency in performance, departure of key personnel, material changes in managedassets and clients, financial instability, change in organizational or ownership structure,consultant downgrade, investment strategy or style deviation, contravention of any term orcondition of the Investment Management Agreement or any other issue believed to underminethe RPMC’s confidence in the Investment Manager.

Based on criteria that are indicators of legitimate relationship and investment performanceproblems, both qualitative and quantitative criteria of the Investment Manager shall be monitoredon an ongoing basis.

Qualitative criteria include the Investment Manager’s business, people, investment process andconsultant downgrade in research rating. Non-compliance with qualitative criteria will trigger adue diligence review and may lead to a recommendation to place the Investment Manager on the


Watch List or terminate the Investment Manager. Quantitative analysis of performance willfocus on the following:

One (1) year peer universe ranking in the ninetieth (90th) percentile or lower will trigger a

due diligence review.Three (3) year and five (5) year peer universe ranking in the fiftieth (50th) percentile or

lower will trigger a due diligence review and recommendation to the RPMC, which maylead to a Watch List or termination recommendation.Three (3) year annualized return less than ninety (90) percent of benchmark return will

trigger a due diligence review.

Violations of any quantitative and qualitative criteria will trigger an automatic due diligencereview, which may lead to placement on the Watch List or termination. A firm placed on theWatch List will remain on the Watch List for at least two (2) consecutive quarters. A firm maybe removed from the Watch List at the discretion of the RPMC. The Watch List Policy does notlimit the RPMC’s ability to retain or terminate the Investment Manager. Any InvestmentManager on the Watch List may be restricted from receiving additional funding by the RPMC. Ifthe RPMC determines (with advice from the consultant) the Investment Manager is unlikely(without style drift) to meet the Investment Manager requirements, the Investment Manager maybe terminated.

10603250 v1

APPROVED BY:

For the Gwinnett County Retirement Plans Management Committee:

Signature

Name (Print or Type)

Chairman, Gwinnett County Retirement Plans Management Committee (RPMC)Title

Date

10603250 v3


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Description#10603250v3<mmmdms1> - Gwinnett County - DB PlanInvestment Policy Statement (2/2017)

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Plan Participation – 2016

Plan 1st Qtr Participation

2nd Qtr Participation

3rd Qtr Participation

4th Qtr Participation

DB Plan

1,537 – 34%

1,491 – 33%

1,467 – 32%

1,425 – 31%

DC Plans

2,989 – 66%

3,035 – 67%

3,080 – 68%

3,138 – 69%

Retiree Medical Savings Plan

447

439

430

427

Deferred Compensation

3,502 – 76%

3,578 – 79%

3591 – 79%

3,615 – 79%

Deferred Compensation - Roth

743 – 21%

826 – 23%

867 – 24%

919 – 25%

Deferred Compensation Match

2,052 – 81%

2,103 – 81%

2,167 – 82%

2,215 – 82%

Total Participants

4,526

4,526

4,547

4,563

Retirees receiving DB pension

2,088

2,129

2,151

2,189

Retirements - DB

7

40

14

39

Retirements – DC

3

5

7

5

Deferred Vested

3

14

10

5

Retirees w/Health Insurance

1,336

1,361

1,377

1,405

Empower Retirement Education Participation - 2016

Activity 1st Qtr Participation

2nd Qtr Participation

3rd Qtr Participation

4th Qtr Participation

Total Participation

Group/Onsite Meetings

25

32

17

58

132

Seminars/Lunch & Learns

7

5

4

4

20

One on One Meetings

406

399

313

162

1,280

NM MORRIS, MANNING & MARTIN, LLP

February 17, 2017

Edmund Emerson III (404) 504-7677 [email protected]

Mr. James L. Underwood Gwinnett County Retirement Plans

Management Committee 75 Langley Drive Lawrenceville, Georgia 30046

Re: Renewal of Engagement of Morris, Manning & Martin, LLP (June 1, 2017- May 31, 2018)

Dear Jim:

Thank you for the opportunity to continue to perform legal services for the Gwinnett County Retirement Plans Management Committee (the "Committee") in connection with matters relating to employee benefits, the Defined Benefit Plan, the Defined Contribution Plan, the 457(b) Plan and such future matters that we mutually agree to undertake.

As is currently the case, I will continue to be the primary day-to-day contact on this engagement and under the same retainer fee arrangement. For a monthly retainer of $4,000 ($48,000 annually), we will provide the following services:

• Attend half-day Committee meetings oli a quarterly basis;

• Provide ten hours of legal services per month on employee benefits issues; and

• Upon request, provide a training seminar to either the Committee or benefits administrative staff on topical employee benefits issues and attend any additional special-called meetings.

Any services in excess of or outside the scope of the retainer and the services provided, as described above, will be billed at the discounted hourly rates described below. For this engagement, effective June 1, 2017, the hourly rates for Ed Emerson, Scott Wagner, and Nell Schiller will be $495, $425 and $390, respectively. Both our hourly and retainer rates are periodically adjusted to account for changes in attorney seniority and market conditions; however, our rates for this engagement will remain in place through May 31, 2018.

This engagement will automatically continue and renew each subsequent May 31, unless terminated earlier by the Committee.

Phone: 404.233.7000 1 www.mmmlaw.com

1600 Atlanta Financial Center 1 3343 Peachtree Road, NE 1 Atlanta, Georgia 30326

Atlanta • Washington, DC • Raleigh-Durham • Savannah

International Marketing Office: Beijing

10733120 vi

MORRIS, MANNING & MARTIN, LLP

Mr. James L. Underwood February 17, 2017 Page 2

I appreciate the confidence you have placed in me and look forward to continuing to work with you and the Committee. If you have any questions about our representation at any time during the course of our relationship, please do not hesitate to call me.

Very truly yours,


W~e-Edmund Emerson III

ACCEPTED AND AGREED this __ day of , 2017.

GWINNETT COUNTY RETIREMENT PLANS MANAGEMENT COMMITTEE

By: _____________ _

Name: James L. Underwood Title: Committee Chairman

April 20, 2016

Mr. James L. Underwood Gwinnett County Retirement Plans

Management Committee 75 Langley Drive Lawrenceville, Georgia 30046


Edmund Emerson III (404) 504-7677 [email protected]

Re: Renewal of Engagement of Morris, Manning & Martin, LLP (June 1, 2016 - May 31, 2017)

Dear Jim:

Thank you for the opportunity to continue to perform legal services for the Gwinnett County Retirement Plans Management Committee (the "Committee") in connection with matters relating to employee benefits, the Defined Benefit Plan, the Defined Contribution Plan, the 457(b) Plan and such future matters that we mutually agree to undertake.

As is currently the case, I will continue to be the primary day-to-day contact on this engagement and under the same retainer fee arrangement. For a monthly retainer of $4,000 ($48,000 annually), we will provide the following services:

• Attend half-day Committee meetings on a quarterly basis;

• Provide ten hours of legal services per month on employee benefits issues; and

• Upon request, provide a training seminar to either the Committee or benefits administrative staff on topical employee benefits issues and attend any additional special-called meetings.

Any services in excess of or outside the scope of the retainer and the services provided, as described above, will be billed at the discounted hourly rates described below. For this engagement, effective June 1, 2016, the hourly rates for Ed Emerson, Margaret Barker, and Nell Schiller will be $495, $405 and $375, respectively. Both our hourly and retainer rates are periodically adjusted to account for changes in attorney seniority and market conditions; however, our rates for this engagement will remain in place through May 31, 201 7.

This engagement will automatically continue and renew each subsequent May 31, unless terminated earlier by the Committee.

Phone: 404.233.7000 1 www.mmmlaw.com

1600 Atlanta Financial Cenier I 3343 Peacl1tree Road. NE 1 Atlanta, Georgia 30326

Atlanta • Washington, DC • Raleigh-Durham • Savannah

International Marketing Office: Beijing


Mr. James L. Underwood April 20, 2016 Page 2

I appreciate the confidence you have placed in me and look forward to continuing to work with you and the Committee. If you have any questions about our representation at any time during the course of our relationship, please do not hesitate to call me.

Very truly yours,


!(/J~I~ Edmund Emerson III

ACCEPTED AND AGREED this ___ day of , 2016.

GWINNETT COUNTY RETIREMENT PLANS MANAGEMENT COMMITTEE

By: ____________ _

Name: James L. Underwood Title: Committee Chairman

SEVENTH AMENDMENT TO THE

ANNUAL CONSULTANT CONTRACT This SEVENTH AMENDMENT is made as of this______ day of __________, 2017, by and between the Gwinnett County Retirement Plans Management Committee the (the “RPMC”) and Cavanaugh Macdonald Consulting, LLC (the “Consultant”).

WITNESSETH: WHEREAS, the parties entered INTO THE Annual Consultant Contract (the “Contract”) effective May 8, 2007, for a one year period with three options to renew for additional one year periods; and WHEREAS, the term and the renewals of the contract will expire on May 8, 2017, and the Parties wish to renew the contract for an additional one-year period; and WHEREAS, Governmental Accounting Standards Board (GASB) Statements Nos. 67, 68, 74 and 75 will replace GASB Statements Nos. 25, 27, 43 and 45 which relate to financial reporting for Gwinnett County Defined Benefit Plan and the Gwinnett County Retirement System Health Insurance Plan and Gwinnett County as plan sponsor of the Gwinnett County Defined Benefit Plan and the Gwinnett County Retirement System Health Insurance Plan: NOW, THEREFORE, for and in consideration of the mutual promises and obligations contained in the Contract (and related attachments) and in this Amendment, the parties hereby amend Section 1 (Term) of the Contract by adding the following to the end of such Section: “Cavanaugh Macdonald Consulting will provide the necessary financial disclosure information to comply with GASB Statement Nos. 67 and 68. Recognizing GASB Statements Nos. 67 and 68 are a significant departure from the current financial reporting standards and will require a significant level of additional information the fee for providing GASB Statement No. 67 financial disclosure information is $4,500 and the fee for providing GASB Statement No. 68 financial disclosure information is $4,500.” “Cavanaugh Macdonald Consulting will provide the necessary financial disclosure information to comply with GASB Statement Nos. 74 and 75. Recognizing GASB Statements Nos. 74 and 75 are a significant departure from the current financial reporting standards and will require a significant level of additional information the fee for providing GASB Statement No. 74 financial disclosure information is $4,500 and the fee for providing GASB Statement No. 75 financial disclosure information is $4,500.” Except as specifically amended hereby, the Contract shall remain in full force and effect prior to this Seventh Amendment.

IN WITNESS WHEREOF, the parties have caused this Seventh Amendment to be executed as of the day and year first above written. GWINNETT COUNTY RETIREMENT PLANS MANAGEMENT COMMITTEE

CAVANAUGH MACDONALD CONSULTING

By: By: Chairman, Retirement Plans Management

Committee

Name: Todd B. Green

Attest: Title: Principal and Consulting Actuary Clerk, Retirement Plans Management

Committee

Attest: T:/2017/Gwinnett County Retirement Sysetm/Contracts

Next Meeting

May 25, 2017

• 2017 1st Quarter Investment Reports

• Audit Committee Report on Annual Valuation and Financial Reports

• Renewals – Empower Retirement, UBS as Defined Benefit Plan Advisor

agenda · 2017-02-23 · 3 9. approve meetings for 2017 a. first quarter – february 23, 2017 b....

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