1 november 7, 2009 w. todd ripley, ctfa svp & senior philanthropic consultant wachovia trust -...

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November 7, 2009

W. Todd Ripley, CTFASVP & Senior Philanthropic Consultant

Wachovia Trust - Nonprofit & Philanthropic Services

Central/Mid-Atlantic Region(864)467-2836

Wachovia Nonprofit & Philanthropic Services

Quarterly Investment UpdateAs of 9/30/2009

Prepared For

National Contract Management Association –

Restricted Reserve & Unrestricted Funds

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Table of Contents

Relationship Summary Tab I

Capital Markets Review Tab II

Asset Allocation & Performance DataTab III

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Relationship Summary

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Relationship Summary

• Established:> June 10, 2005 (NCMA Unrestricted Reserve Funds) (Wachovia Bank, N.A. DDA Account)> May 1, 2006 (NCMA Restricted Reserve Funds Funded) (Wachovia Bank, N.A. serves as

Investment Manager)• Investment Objective:

> 60% Equity> Harbor Capital Appreciation (Lg. Cap. Growth), Davis New York Venture (Lg. Cap Value),

IShares Russell Midcap Index Fd. Boston Company Small Cap Value, IShares Russell 2000 Small Cap Growth Fd., Delaware International Equity (All Shares Institutional Class)

> 40% Fixed Income> Western Asset Core Plus Bond Fd., PIMCO High Yield Bond Fd., PIMCO Foreign Bond Fd.,

and Evergreen Institutional Money Market (Prime Cash Fund)> Asset allocation for Unrestricted Reserve Fund (short term) accordance with current National

Contract Management Association Investment Policy Guidelines. Currently 100% Institutional Depository Account for Non-Profit Organizations. Interest Calculated based upon the average 4 week 90-day Treasury Bill. Rates are set monthly. Current yield 0.25%

• Statements/Tax Reporting:> Monthly & Annual statements Sam Smith (CFO) for further distribution to AMC > Annual 1099 provided

• Distributions/Spending Policy:> Spending Policy as directed by Board approval (NCMA Restricted Reserve Fund)

• Investment Reporting:> Quarterly Investment Performance and Market Updates> Formal presentations (semi-annually)

• Fees:> Wachovia Trust / Nonprofit & Philanthropic Services Institutional Fee Schedule (Equity &

Balanced): 65 basis points on the first $5MM, 45 bps on the next $10mm, 30 bps on the next $30mm,and 20 bps on balance. Equates to approx 65 bps based on market value $1,537,163.17 as of 10/31/2009.

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Capital Markets Review

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Asset Allocation & Performance Data

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Cash9%

International Equity11%

Mid Cap Equity

8%

Small Cap Equity

6%

Large Cap Equity27% Fixed Income

38%

Current Asset Allocation

Market Value as of 11/2/2009

Asset $ Current % Target % Tilt %

Cash $141,855 9% 0% 0%

Fixed Income $588,518 38% 40% 40%

Western Asset Core Plus Bond $456,784 30% 30% 32%

PIMCO High Yield Fund $60,191 4% 5% 4%

PIMCO Foreign Bond Fund $71,543 5% 5% 4%

Large Cap Equity $413,387 27% 28% 32%

Harbor Capital Appreciation Fund $217,788 14% 14% 16%

Davis New York Venture Fund $195,600 13% 14% 16%

Mid Cap Equity $124,035 8% 10% 10%

iShares Russell Midcap Core Fund $124,035 8% 10% 10%

Small Cap Equity $96,992 6% 8% 8%

Boston Company Small Cap Value $47,615 3% 4% 4%

iShares Russell 2000 Growth $49,377 3% 4% 4%

International Equity $172,376 11% 14% 10%

Delaware Pooled Trust Intl Equity $172,376 11% 14% 10%Total $1,537,163 100% 100% 100%

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Current Manager Performance as of 9/30/2009

YTD 1 Yr 3 Yr 5 Yr

Western Core Bond Plus 21.79% 17.24% 4.77% 4.73%Barclays Aggregate 5.72% 10.56% 6.41% 5.13%PIMCO High Yield Fund 35.73% 18.05% 3.68% 5.10%Barclays High Yield Index 48.98% 22.34% 5.31% 6.13%PIMCO Foreign Bond Fund 16.84% 17.34% 6.01% 5.87%JP Morgan Global Gov Bond Index ex US (hedged) 2.02% 7.62% 5.20% 5.18%Harbor Cappital Appreciation Fund 30.26% 3.23% -1.40% 3.49%Russell 1000 Growth 27.11% -1.85% -2.50% 1.86%Davis New York Venture Fund 24.07% -6.28% -5.42% 1.85%Russell 1000 Value 14.85% -10.62% -7.87% 0.90%iShares Russell MidCap Core 32.49% -3.59% -4.16% 3.77%Russell MidCap Index 32.63% -3.55% -4.07% 3.89%iShares Russell 2000 Growth 29.07% -6.21% -2.61% 2.83%Russell 2000 Growth 29.12% -6.32% -2.60% 2.91%Boston Small Cap Value Fund 25.77% -5.83% -3.96% 3.86%Russell 2000 Value 16.36% -12.61% -6.65% 1.78%Delaware Pooled International Equity Fund 18.23% 0.27% -2.97% 6.81%MSCI EAFE Free Index 29.58% 3.80% -3.12% 6.57%

Annualized

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Manager Performance (Optimized) as of 9/30/2009

YTD 1 Yr 3 Yr 5 Yr

PIMCO Total Return 12.73% 18.33% 9.16% 6.93%Barclays Aggregate 5.72% 10.56% 6.41% 5.13%Western Core Bond Plus 21.79% 17.24% 4.77% 4.73%Barclays Aggregate 5.72% 10.56% 6.41% 5.13%PIMCO High Yield Fund 35.73% 18.05% 3.68% 5.10%Barclays High Yield Index 48.98% 22.34% 5.31% 6.13%PIMCO Foreign Bond Fund 16.84% 17.34% 6.01% 5.87%JP Morgan Global Gov Bond Index ex US (hedged) 2.02% 7.62% 5.20% 5.18%Harbor Capital Appreciation Fund 30.26% 3.23% -1.40% 3.49%Russell 1000 Growth 27.11% -1.85% -2.50% 1.86%Davis New York Venture Fund 24.07% -6.28% -5.42% 1.85%Russell 1000 Value 14.85% -10.62% -7.87% 0.90%iShares Russell MidCap Core 32.49% -3.59% -4.16% 3.77%Russell MidCap Index 32.63% -3.55% -4.07% 3.89%iShares Russell 2000 Growth 29.07% -6.21% -2.61% 2.83%Russell 2000 Growth 29.12% -6.32% -2.60% 2.91%Boston Small Cap Value Fund 25.77% -5.83% -3.96% 3.86%Russell 2000 Value 16.36% -12.61% -6.65% 1.78%Delaware Pooled International Equity Fund 18.23% 0.27% -2.97% 6.81%MSCI EAFE Free Index 29.58% 3.80% -3.12% 6.57%

Annualized

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Integrated solutions, delivered through a dedicated local team of specialists, is at the core of the Wachovia experience. As the premier provider of

charitable services, we stand ready to meet your needs.

The Power of Partnership

Janet L. RobinsInvestment Management

Associate(864) 467-2838

Janet.robins@wachovia.com

W. Todd Ripley, CTFASenior Vice President, Senior Philanthropic

ConsultantWachovia Trust Nonprofit & Philanthropic Services

Carolinas & Southern US Region(864) 467-2836 telephone

(864) 787-4890 cell(864) 467-2865 fax

(888) 251-7674 toll-freetodd.ripley@wachovia.com

Evan M. Astrin, JDVice President, Charitable

Administration(336) 732-6015

evan.astrin@wachovia.com