concordia university, nebraska & concordia...

Concordia University, Nebraska & Concordia Foundation, Inc.March 31, 2013

Exceeding Your Expectations

500 West Madison Street, Suite 1700 | Chicago, IL 60661 | 312.853.1000

Quarterly Considerations

1

Plan Sponsors

Non-Profit Organizations

The Wealth Office™

Tips on TDFs - The DoL issued new guidance on target date funds (TDFs), stating that plan sponsors should understand the distinctions between custom-built, non-proprietary and proprietary offerings. Please join us for a May 29th webinar, “TDF Best Practices, Oversight and Customization”. Settle Up -The proposed SEAL Act would give workers who leave their jobs up until they file their federal taxes to repay money taken out of a retirement plan. It would also allow employees to contribute to their 401(k) plans during the 6 months following a hardship withdrawal. Steady Decline - Employer-sponsored defined benefit pension plans fell to an all-time low of 22,697 in 2012. Except for a slight uptick from in 2007, the number of private-sector defined benefit plans has declined every year since 1995. Funding Status - Pension funding ratios fell in 2012 to 77.2% as the impact of low interest rates offset strong asset gains, according to a Milliman study. Declining interest rates have widened the pension funding deficit by more than $150 billion since the end of 2010, driving record deficits in each of the last two years. eGiving - The sum charities raised online last year grew 21 percent and the number of Internet donations they received climbed 20 percent, according to the 2013 eNonprofit Benchmarks Study. One of the brightest spots was monthly giving, which grew by 43 percent. Privacy Issues - Not-for-profit foundations have for the first time become the most common type of investors in private equity. Foundations make up 15% of all investors in the industry globally. Pension funds and endowments were the next biggest backers of private equity, in terms of investor numbers. Fix It - The IRS added to its "self-help" resources a "403(b) Plan Fix-It Guide" to provide guidance more specifically directed at 403(b) plan sponsors that identify qualification or operational plan failures under their plans.

Happy Anniversary - 2013 marks the 100th anniversary of the IRS Form-1040 and the imposition of the federal income tax. We’re guessing this is one anniversary few will celebrate. With all the recent changes to the tax laws, The Wealth OfficeTM can help you ensure your investment portfolio is optimized with respect to your personal tax situation. Spring Clean-Up - The early part of the year is a great time to review your personal financial situation to ensure all your bases are covered. From a retirement cash flow analysis to a review of your existing insurance policies, The Wealth OfficeTM can help you identify areas that require further attention. Tax Time Scams - Tax time is stressful enough on its own, but it’s also a time of increased fraudulent activity. Beware of phony tax preparation solicitations, online tax refund scams, and phishing attempts disguised as IRS emails. If you have any questions about unsolicited attempts to garner your financial information, please contact The Wealth OfficeTM. 401(Cap) - President Obama’s proposed budget for fiscal year 2014 includes a lifetime cap on tax-deferred savings accounts such as IRAs and 401(k)s. As proposed, the cap would limit an individual’s total balance across such accounts to the amount necessary for someone age 62 to buy an annuity generating $205,000 in annual payments – or a total of $3.4 million in today’s terms. The Wealth OfficeTM can answer any questions you may have about how this proposal could impact your investment portfolio.

2

http://www.e-benchmarksstudy.com/�




http://www.irs.gov/Retirement-Plans/403(b)-Plan-Fix-It-Guide�



Market Snapshot

2

-0.4%

0.8%

-0.1%

-3.5%

2.9%

-0.1%

10.6%

8.2%7.0%

5.2%

-1.6% -1.1%

3.4% 3.8%

19.7%

5.7%

3.2% 3.8%

-0.7%

13.1%

7.7%

14.0%15.3%

22.3%

11.8%

2.3%

-3.0%

4.8% 5.5%

23.0%

-5%

0%

5%

10%

15%

20%

25%

Barclays TIPS

Barclays Muni Bond 5

Year

Barclays Aggregate

Barclays Global

Aggregate ex. US

Unhedged

Barclays U.S.

Corporate High Yield

JPMorgan GBI-EM Global

Diversified Unhedged

S&P 500 NAREIT All Equity

S&P Developed

World Property

MSCI EAFE MSCI EM DJ UBS Commodity

Index

HFRI Fund of Funds

Composite

HFRI Weighted

Composite

Alerian MLP Index

Source: Bloomberg

Fixed Income Equities Alternatives

Key: Left bars: Quarter returnRight bars: Trailing 1 year return

• Fixed income returns were muted with little changed over the quarter. A stronger dollar offset most price appreciation of Global index returns. Corporate credit performed well despite relatively flat credit spreads.

• With a last minute agreement on the ‘fiscal cliff’ and postponement of sequestration and debt ceiling debates until the second quarter, animal spirits were alive pushing domestic indexes near all time highs.

• Despite the effects of the Cyprus bailout near the end of the quarter, international developed stocks posted positive returns, but trailed domestic equities. Emerging markets trailed as they faced headwinds from weaker commodity prices and concern over economic growth in China.

3

U.S. Economy

• U.S. GDP increased at an annual quarter-over-quarter rate of 0.4% for the prior quarter. Positive contributions from personal consumption expenditures (PCE) and residential and nonresidential fixed investment were partly offset by negative contributions from private inventory investment, exports, and federal, state and local government spending.

• The first quarter GDP advance estimate is due out on April 26th, 2013.

• CPI rose more than expected in February due to rising food prices and the largest increase in gas prices in more than three years, before falling in March as gas prices tumbled. Year-over-year inflation remains within the Fed’s 2% target range.

• Given the Federal Reserve’s benign intermediate

term inflation outlook, the central bank reaffirmed its commitment to purchase bonds at a pace of $85 billion per month until there is a substantial improvement in the unemployment rate.

3

1.7%

-6%

-4%

-2%

0%

2%

4%

6%

Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12

U.S. Real GDP Growth (Seasonally Adjusted - YoY % Change)

Real GDP Growth % YoY

Sources: Bloomberg & Bureau of Economic Analysis

1.5%

1.9%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

U.S. Inflation (YoY % Change)

CPI CPI CoreSources: Bloomberg & The Bureau of Labor Statistics

4

U.S. Economy

• The U.S. Census Bureau reported that March housing starts rose to a seasonally adjusted annual rate of 1,036,000. Despite the continued upward trend, starts remain at less than half their pre-recession peak. Meanwhile, permits for new construction rose to a seasonally adjusted annual rate of 902,000, down slightly from February levels.

• Home prices continued their winning streak of year-

over-year gains with the 20-city S&P/Case-Shiller Index posting a 6.8% increase in the fourth quarter from a year earlier.

• The index of leading economic indicators (LEI) advanced 0.5% in February after a 0.5% gain in January and a 0.4% increase in December.

• February’s increase - the third consecutive - was widespread and driven by a majority of the LEI components with particularly large contributions from financial indicators and building permits. However, consumer expectations for business conditions and manufacturers’ new orders for nondefense capital goods remain weak.

4

1.7%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12

U.S. Leading Economic Indicators(YoY % Change)

Sources: Bloomberg & The Conference Board

46.7%

-60%

-40%

-20%

0%

20%

40%

60%


U.S. Private Housing Starts(Seasonally Adjusted - YoY % Change)

Source: Bloomberg & U.S. Census Bureau

5

International Economies

• The recession in the 17-member Eurozone deepened during the final quarter of 2012 with the economy contracting at an annual quarter-over-quarter rate of 0.6%, its worst performance in almost four years.

• Japan’s central bank set a 2% inflation target and stepped up its monetary

stimulus program in an attempt to combat deflation, which has plagued the country for nearly two decades. Haruhiko Kuroda, who was confirmed as the new Bank of Japan governor, has long advocated aggressive monetary easing to fight deflation.

• In the emerging markets, China kept its GDP growth target for 2013

unchanged at 7.5% amid moderating growth. Brazil’s economic growth was dismal as demand for commodities slowed. China and the European Union account for nearly 40% of Brazilian exports.

5

1.7%

-0.9%

0.2% 0.4%

-0.3%

-2.8% -1.9%

-6.0%

1.2% 0.5%

7.9%

1.4%2.1%

4.5%

1.8% 2.2% 2.7%2.0%

1.3%2.6% 2.9%

0.8%

-0.4% -0.1%

2.5%

5.8%6.6%

11.2%

-10%

-5%

0%

5%

10%

15%

U.S. Eurozone U.K. Germany France Italy Spain Greece Switzerland Japan China Brazil Russia India

Global Real GDP & Inflation Rates (YoY)

Source: Bloomberg Key: Flagged bars: YoY Real GDP growthBlue bars: YoY CPI change

December 31, 2012As of:

U.S. 107% Greece 159%

Eurozone 93% Switzerland 49%

U.K. 90% Japan 238%

Germany 82% China 23%

France 90% Brazil 68%

Italy 127% Russia 11%

Spain 84% India 67%

Data as of: 12/31/2012Source: IMF

Gross Debt / GDP

6

Global Fixed Income

6

-0.2% -0.4%

0.8%

-0.1% 0.0%

0.0% 0.1%

-0.1%

2.9%1.1%

-3.5%

-0.1%

3.1%

5.7%

3.2% 3.8%2.0%

2.9%

6.1%7.5%

13.1%

5.8%

-0.7%

7.7%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

U.S. Treasuries U.S. TIPS U.S. Muni 5 Year Barclays U.S. Agg

U.S. MBS U.S. ABS U.S. CMBS U.S. Corporates U.S. High Yield Barclays Global Agg ex. U.S.

Hedged

Barclays Global Agg ex. U.S. Unhedged

JPMorgan GBI-EM Global Diversified Unhedged

Fixed Income Sector Returns

QTR 1 YearSource: Bloomberg & Barclays

-0.1%

-2.8%

-5.1%

-1.4%

3.8%3.2%

-6.9%

2.6%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

Barclays U.S. Agg Barclays Euro Agg Barclays AsianPac Agg Barclays Canadian Agg

Barclays Global Aggregate Regional Returns

QTR 1 YearSource: Bloomberg & Barclays

• Nominal U.S. treasuries, U.S. TIPS, U.S. investment- grade corporates and emerging markets debt markets were little changed during the quarter.

• U.S. high yield continued to outperform all other fixed income in the current low yield environment, and the asset class has outperformed treasuries by approximately 10% over the last year.

• Due to the yen’s considerable deprecation relative to the U.S. dollar, Asian denominated bonds declined significantly for U.S. investors.

• The Barclays European Aggregate declined during the quarter after the European Union was forced to bail out Cyprus and restructure the country’s banking system.

7

U.S. Fixed Income

7

0%

1%

2%

3%

4%

3 Month 6-Month 2-Year 5-Year 10-Year 30-Year

U.S. Yield Curve

Mar-12 Dec-12 Mar-13Source: Bloomberg

2.5%

1.9%

-0.7%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%


10-Year Breakeven Inflation Rate

10-Year Breakeven Inflation10-Year Treasury Yield10-Year TIPS Yield

Source: Bloomberg

• The yield curve steepened modestly on the long end of the curve as a result of generally positive economic data, including strong housing results.

• Longer maturities sold off due to higher duration securities being more sensitive to heightened long-term inflation expectations as the result of the Fed’s new commitment requiring a further increase in the money supply.

• The ten-year Treasury rate reached a high of 2.05% in early March before falling modestly as a result of fresh global macroeconomic fears associated with the E.U.’s bailout of Cyprus. • The ten-year breakeven rate remained flat during the

quarter, which was due to a slight yield pick up in the ten-year treasury yield being largely offset by a corresponding decline in the ten-year TIPS yield.

• Overall, the short and intermediate part of the real yield curve remained negative within a range of -0.6% to -1.5%, and the 20- and 30-year maturities remained at modestly positive real yields.

• Market implied inflation of 2.5% remained right on top of the Fed’s recently released threshold for the metric, which suggests the Fed beginning a tightening cycle remains unlikely in the near term.

8

U.S. Fixed Income

8

0.4%

1.2%1.8%

0%

1%

2%

3%

4%

5%

6%

7%


Investment Grade Yield Spreadsover 10-Year Treasury

Agency Spread Corporate A Spread Corporate BBB SpreadSource: Bloomberg

3.3%4.5%6.6%

0%

5%

10%

15%

20%

25%

30%


High Yield Option Adjusted Spreads

BB Spread B Spread CCC SpreadSource: Bloomberg & Barclays

• Investment-grade credit spreads ticked down by approximately ten basis points each during the quarter as U.S. investment-grade issuers’ balance sheets remain strong.

• Financial bond spreads tightened by 13 basis points on improving loan quality associated with growing capital levels and reductions in leverage; financial spreads are now only five basis points wider than industrials due to strong performance over the last year.

• Investment-grade corporate issuance remained strong during the quarter due to both low historical U.S. rates and low credit spreads that can finance corporate growth projects cheaply relative to historical rates. • Interest in high yield remains strong among

investors, and spreads tightened by 150, 40, and 30 basis points for CCC-, B-, and BB- rated debt, respectively.

• Asset flows into high yield mutual funds and ETFs slowed during the first quarter, and investor appetite shifted to leveraged loan strategies as evident by an estimate by JPMorgan of $11.7 billion of fund inflows into the fairly new asset class during the first quarter.

• According to JPMorgan, high yield recovery rates have increased to greater than 80%, which is almost double the average rate of 42% observed over the last 25 years.

9

International Fixed Income

9

1.9% 1.8%1.3%

2.0%

4.8% 5.1%

12.3%

0.7% 0.5%

3.6%

10.0%

7.1%8.0%

0%

2%

4%

6%

8%

10%

12%

14%

U.S. U.K. Germany France Italy Spain Greece Switzerland Japan China Brazil Russia India

10-Year Sovereign Borrowing Rates

Source: Bloomberg

Currency: U.S. Dollar British Pound

Euro Euro Euro Euro Euro SwissFranc

Yen Yuan Real Ruble Rupee

-2.9%

-8.6%

-6.9%

4.1%

0.3%

-2.6% -3.7%

0.2%

-4.1%

-13.7%

-5.3%

3.7%

1.4%

-1.9%

-5.2%

0.7%

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

Euro Japanese Yen British Pound Mexican Peso Chinese Yuan Canadian Dollar Swiss Franc Australian Dollar

Currency Returns vs. U.S. Dollar

QTR 1 YearSource: Bloomberg

• Disparity remains in the Eurozone with ten-year German bunds trading at significant premiums to Greek, Spanish, and Italian bonds despite the ECB’s explicit commitment to support the bond markets of overleveraged nations.

• Yields in Brazil, Russia, and India highlight continued inflation fears in emerging markets.

• Many developed market currencies depreciated against the U.S. dollar during the quarter, especially the yen, which continues to weaken due to the central bank’s economic stimulation efforts to fight deflation.

10

Equity Markets

10

U.S. Equities:

10.7%

2.8%0.3%

2.5%0.6%

9.8%11.7%

7.0%

-1.3%-4.5%

-2.6%-0.8%

-3.2%

0.9%

6.1%

1.1%

-5.4%

13.9%11.3% 9.4% 9.8% 10.0%

13.0%

8.7%

20.0%

5.6%6.9%

2.3%

-12.5%

-6.6%-4.1%

18.4%

4.2%

-0.2%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

U.S. Europe Germany United Kingdom

France Pacific Japan Pacific (ex. Japan)

EM Asia China India Brazil Russia EM Latin America

Mexico Canada EM EMEA

MSCI Equity Returns by Country / Region


QTR 1 YR QTR 1 YR QTR 1 YR

13.2

14.5

Value Core Growth

12.3 11.0 9.5

16.3

Larg

eM

idSm

all

10.1

21.5 17.7

11.5

12.8

12.4

14.5

11.6

18.1

18.9

14.2 13.0

• Value stocks continued their push ahead of growth stocks across the capitalization spectrum with the exception of small caps.

• In contrast to the fourth quarter, some domestic defensive sectors outperformed in the first quarter with health care stocks leading the way.

• At the country level, the U.S. gain of 10.7% was only outpaced by Japan with an

11.7% gain. The country was helped by a weaker yen and monetary easing from the Japanese Central Bank.

• Despite the turmoil from the controversial Cyprus bailout and low economic growth, the Eurozone posted positive equity returns for the quarter.

• Emerging markets equities trailed due to weaker commodity prices and concern over

economic growth out of China. China posted the worst returns of the BRIC countries for the quarter with a return of -4.5%.

11

Quarterly Equity Sector Returns

11

11.9%

15.2%

10.4%

12.0%

16.0%

12.2%

5.1%3.8%

11.9%12.7% 12.2%

11.6%13.0%

14.9%

8.5%

14.8%

10.1% 9.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Consumer Discretionary

Consumer Staples Energy Financial Services Health Care Materials & Processing

Producer Durables Technology Utilities

Domestic Equity Sector Returns

Domestic Large Cap (Russell 1000) Domestic Small Cap (Russell 2000)Source: Bloomberg

7.4%

11.2%

-1.6%

5.4%

12.5%

5.7% 5.2%

-4.7%

6.2%

-1.0%-2.5%

1.9%

-5.8%

1.8% 2.6%

-1.2%

0.9%

-10.0%

-5.0%

2.0%

-15%

-10%

-5%

0%

5%

10%

15%

Consumer Discretionary

Consumer Staples Energy Financials Health Care Industrials Information Technology

Materials Telecommunication Services

Utilities

International Equity Sector Returns

International (MSCI EAFE) Emerging Markets (MSCI EM)Source: Bloomberg

12

U.S. Equity Market Fundamentals

12

7.5%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%


S&P 500 Price / Trailing 12-Month EarningsYoY Multiple Expansion / (Contraction)

Source: Bloomberg

3.7%

-40%

-20%

0%

20%

40%

60%

80%


S&P 500 YoY Earnings Growth

Source: Bloomberg & Standard & Poor's

• Earnings growth has contributed heavily to the stock rally after the 2008 financial crisis.

• As earning growth slows (see chart below), higher prices on equities will likely rely more on higher multiples.

• The S&P 500 ended the first quarter of 2013 with a trailing 12-month P/E of 15.5x, which compares to an average trailing 12-month P/E of 16.4x over the prior 10-year time period.

• The large earnings expansion that happened after the 2008 financial crisis has been led mainly by margin expansion as opposed to revenue growth.

• In the previous two quarters, margin growth turned slightly negative and dragged down earnings growth.

• It is likely that future earnings growth with have to rely more heavily on revenue growth to continue increasing.

13

Real Estate

13

8.2% 8.8% 7.8%

0.1%

6.9%

13.7% 14.7%17.8%

15.3%

9.9% 11.2%

-1.3%

18.2%

12.7%

34.9%

29.5%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

All Equity Index

Diversified Office Apartment Retail Lodging & Resorts

Health Care Mortgage

Domestic REIT Sector Returns

QTR 1 YearSource: Bloomberg & NAREIT

7.0% 6.2%

-2.5%

9.7%

22.3%

28.6%

12.4%

36.4%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

S&P Developed Property S&P Developed Ex-U.S Property

Europe (S&P Developed Property)

Asia Pacific (S&P Developed Property)

Global REIT Region Returns

QTR 1 YearSource: Bloomberg & Standard & Poor's

• Domestic REITs delivered strong returns across a variety of subsectors. Small-caps and lower quality companies with higher dividends also outperformed.

• Small-caps benefited from fund inflows,

improvements in secondary markets and a decline in their relative cost of capital.

• A continued recovery in the housing market caused apartment REITs to lag. The Industrial sector’s outperformance was driven by solid fourth quarter results and future growth expectations.

• Globally, REITs rallied for the quarter driven by strength in Japan and the U.S.

• Japan outperformed thanks to the central banks' quantitative easing measures. China and Singapore declined over restrictive demand-oriented policies.

• European REITs declined but saw wide dispersion of results. Greece rebounded while macroeconomic headwinds weighed on Germany. The U.K. lagged due to weakness in secondary markets and the British Pound.

14

Real Assets

14

-1.1%

7.1%

-3.8%

-7.9%-6.4%

3.3%

-5.5%-3.2%-3.0%

3.3%

7.8%

-12.4%

-4.9% -4.8%-7.5%

-23.3%-25%

-20%

-15%

-10%

-5%

0%

5%

10%

DJ UBS Commodity Composite

Energy Grains Industrial Metals

Livestock Petroleum Precious Metals

Softs

DJ UBS Commodity Returns


3.5%

-2%

0%

2%

4%

6%

8%

10%

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13

MLP Yield Spreads over 10-Year Treasury

MLP Spread FTSE NAREIT All Equity REIT Spread

A-Rated Corporate Spread BBB-Rated Corporate SpreadSource: Bloomberg

• Comparative spreads were flat for the quarter and the Alerian MLP Index ended the quarter yielding 5.7%.

• Energy MLPs surged following relative

underperformance to the S&P 500 in 2012.

• Midstream MLPs exposed to growing basins in the crude oil transportation and storage subsectors outperformed.

• Energy commodities gained as natural gas and crude oil outperformed. Colder than forecasted weather drove natural gas prices.

• Agriculture lagged as Sugar declined following a strong Brazilian harvest and ample supply. Higher wheat inventories led to weakness.

• Industrial metals underperformed due to poor macroeconomic news. Lower demand for gold led to further weakness, despite the Fed’s continued loose monetary policy.

15

Hedge Funds

15

3.4%3.8%

5.2%

3.9%

1.4%

3.3%

4.8%5.5% 5.8%

7.9%

0.6%

9.7%

0%

2%

4%

6%

8%

10%

12%

Fund of Funds Composite

Fund Weighted Composite

Equity Hedge Event Driven Macro Relative Value

Hedge Fund Returns

QTR 1 YearSource: Bloomberg & Hedge Fund Research

• Equity hedge led all strategies as fundamental managers focused in technology and healthcare led the way.

• Relative value and multi-strategy credit strategies once again outperformed, as arbitrage and high yielding strategies produced strong returns.

• Short-bias and emerging market focused managers lagged amid the market rally and softening data in select emerging economies.

• Robust corporate transaction activity drove event driven strategies to produce solid gains in distressed and activist.

• The HFRI Fund Weighted Composite Index gained 3.8% and the HFRI Fund of Funds Composite Index advanced 3.4% in the first quarter.

• Hedge Fund industry performance continued where it left off in 2012, with balanced gains despite macroeconomic risks remaining.

• The end of the first quarter witnessed hedge funds surpass their April 2011 high water mark after delivering positive results in 9 of the last 10 months.

16

16

2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

REITs31.6%

Emerging34.5%

REITs35.0%

Emerging39.8%

Aggregate Bond5.2%

Emerging79.0%

MLP35.9%

MLP13.9%

Emerging18.6%

MLP19.7%

Emerging26.0%

Commodities21.4%

Emerging32.6%

Emerging Debt18.1%

Foreign Bond4.4%

MLP76.4%

Smal l Growth29.1%

TIPS13.6%

REITs18.1%

Smal l Growth13.2%

Emerging Debt23.0%

International14.0%

International26.9%

Commodities16.2%

Cash1.8%

High Yield58.2%

REITs27.9%

REITs8.3%

Smal l Va lue18.1%

Smal l Blend12.4%

Smal l Va lue22.2%

REITs12.2%

MLP26.1%

MLP12.7%

TIPS-2.4%

Large Growth37.2%

Smal l Blend26.9%

Aggregate Bond7.8%

International17.9%

Large Value12.3%

International20.7%

Large Value7.1%

Smal l Va lue23.5%

Large Growth11.8%

Emerging Debt-5.2%

Smal l Growth34.5%

Smal l Va lue24.5%

High Yield5.0%

Large Value17.5%

Smal l Va lue11.6%

Smal l Blend18.3%

MLP6.3%

Large Value22.2%

International11.6%

Balanced-24.8%

International32.5%

Emerging19.2%

Foreign Bond4.4%

Emerging Debt16.8%

Large Blend10.6%

MLP16.7%

Emerging Debt6.3%

Smal l Blend18.4%

TIPS11.6%

High Yield-26.2%

REITs28.0%

Commodities16.8%

Large Growth2.6%

Smal l Blend16.3%

Large Growth9.5%

Large Value16.5%

Balanced5.8%

Large Blend15.8%

Foreign Bond11.0%

Smal l Va lue-28.9%

Smal l Blend27.2%

Large Growth16.7%

Large Blend2.1%

Large Blend16.0%

REITs8.2%

Smal l Growth14.3%

Large Growth5.3%

Balanced15.4%

Smal l Growth7.0%

Smal l Blend-33.8%

Large Blend26.5%

Emerging Debt15.7%

Balanced1.1%

High Yield15.8%

Balanced6.7%

Balanced12.5%

Large Blend4.9%

Emerging Debt15.2%

Aggregate Bond7.0%

Commodities-35.6%

Emerging Debt22.0%

Large Value15.5%

Large Value0.4%

Large Growth15.3%

International5.2%

Foreign Bond12.5%

Smal l Va lue4.7%

Smal l Growth13.3%

Large Blend5.5%

Large Value-36.8%

Balanced21.4%

High Yield15.1%

Cash0.1%

Smal l Growth14.6%

High Yield2.9%

High Yield11.1%

Smal l Blend4.6%

High Yield11.9%

Balanced4.7%

MLP-36.9%

Smal l Va lue20.6%

Large Blend15.1%

Emerging Debt-1.8%

Balanced12.9%

Cash0.0%

Large Blend10.9%

Smal l Growth4.2%

Large Growth9.1%

Cash4.7%

Large Blend-37.0%

Large Value19.7%

Balanced13.9%

Smal l Growth-2.9%

TIPS7.0%

Emerging Debt-0.1%

Commodities9.1%

Cash3.0%

Foreign Bond8.2%

High Yield1.9%

REITs-37.7%

Commodities18.9%

International8.2%

Smal l Blend-4.2%

MLP4.8%

Aggregate Bond-0.1%

TIPS8.5%

TIPS2.8%

Cash4.8%

Large Value-0.2%

Large Growth-38.4%

TIPS11.4%

Aggregate Bond6.5%

Smal l Va lue-5.5%

Aggregate Bond4.2%

TIPS-0.4%

Large Growth6.3%

High Yield2.7%

Aggregate Bond4.3%

Smal l Blend-1.6%

Smal l Growth-38.5%

Foreign Bond7.5%

TIPS6.3%

International-11.7%

Foreign Bond4.1%

Commodities-1.1%

Aggregate Bond4.3%

Aggregate Bond2.4%

Commodities2.1%

Smal l Va lue-9.8%

International-43.1%

Aggregate Bond5.9%

Foreign Bond4.9%

Commodities-13.3%

Cash0.1%

Emerging-1.6%

Cash1.2%

Foreign Bond-8.7%

TIPS0.5%

REITs-15.7%

Emerging-53.2%

Cash0.2%

Cash0.1%

Emerging-18.2%

Commodities-1.1%

Foreign Bond-3.5%

Why Diversify?

17

17

Source: Bloomberg

Financial Markets PerformancePeriods greater than one year are annualized

As of: March 31, 2013

All returns are in U.S. dollar terms

Global Fixed Income Markets QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

Citi 3-Month T-Bill 0.0% 0.0% 0.1% 0.1% 0.1% 0.3% 1.5% 1.7%

Barclays US TIPS -0.4% -0.4% 5.7% 8.9% 8.6% 5.9% 7.0% 6.3%

Barclays Municipal Bond (5 Year) 0.8% 0.8% 3.2% 5.0% 4.4% 5.1% 5.1% 4.2%

Barclays US Aggregate -0.1% -0.1% 3.8% 5.7% 5.5% 5.5% 5.9% 5.0%

Barclays Global Aggregate ex-US Hedged 1.1% 1.1% 5.8% 6.1% 4.4% 4.6% 4.7% 4.4%

Barclays Global Aggregate ex-US Unhedged -3.5% -3.5% -0.7% 1.5% 3.8% 2.5% 5.8% 5.8%

Barclays US Corporate High Yield 2.9% 2.9% 13.1% 9.7% 11.2% 11.6% 9.3% 10.1%

JPMorgan GBI-EM Global Diversified Unhedged -0.1% -0.1% 7.7% 5.5% 7.9% 8.4% 10.4% 11.9%

Global Equity Markets QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

S&P 500 10.6% 10.6% 14.0% 11.2% 12.7% 5.8% 5.0% 8.5%

Dow Jones Industrial Average 11.9% 11.9% 13.4% 11.7% 13.3% 6.5% 6.8% 8.9%

NASDAQ Composite 8.5% 8.5% 7.4% 9.8% 12.2% 8.7% 6.0% 10.3%

Russell 3000 11.1% 11.1% 14.6% 10.8% 13.0% 6.3% 5.2% 9.2%

Russell 1000 11.0% 11.0% 14.5% 11.1% 13.0% 6.2% 5.2% 9.0%

Russell 1000 Growth 9.5% 9.5% 10.1% 10.5% 13.1% 7.3% 6.1% 8.7%

Russell 1000 Value 12.3% 12.3% 18.9% 11.6% 12.8% 4.8% 4.2% 9.2%

Russell Mid Cap 13.0% 13.0% 17.7% 10.3% 14.8% 8.5% 6.3% 12.4%

Russell Mid Cap Growth 11.5% 11.5% 12.8% 8.5% 14.2% 7.9% 5.9% 11.5%

Russell Mid Cap Value 14.2% 14.2% 21.5% 11.5% 15.0% 8.5% 6.1% 12.5%

Russell 2000 12.4% 12.4% 16.3% 7.7% 13.4% 8.2% 4.6% 11.5%

Russell 2000 Growth 13.2% 13.2% 14.5% 7.4% 14.7% 9.0% 5.2% 11.7%

Russell 2000 Value 11.6% 11.6% 18.1% 8.1% 12.1% 7.3% 3.9% 11.4%

MSCI ACWI ex. U.S. 3.3% 3.3% 8.9% 0.8% 4.9% 0.1% 3.1% 11.4%

MSCI EAFE 5.2% 5.2% 11.8% 2.9% 5.5% -0.4% 2.1% 10.2%

MSCI EAFE Growth 6.8% 6.8% 11.7% 3.9% 6.8% 0.2% 2.9% 9.8%

MSCI EAFE Value 3.6% 3.6% 11.7% 1.8% 4.1% -1.1% 1.2% 10.5%

MSCI EAFE Small Cap 8.5% 8.5% 13.7% 3.4% 8.8% 2.4% 2.2% 13.6%

MSCI Emerging Markets -1.6% -1.6% 2.3% -3.3% 3.6% 1.4% 6.7% 17.4%

Alternatives QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

Consumer Price Index 0.5% 0.5% 1.5% 2.0% 2.2% 1.7% 2.2% 2.4%

FTSE NAREIT Equity REIT 8.2% 8.2% 15.3% 14.0% 17.2% 6.8% 4.9% 12.4%

S&P Developed World Property x U.S. 6.2% 6.2% 28.6% 11.6% 13.7% 2.5% 3.7% 13.8%

S&P Developed World Property 7.0% 7.0% 22.3% 12.5% 15.0% 4.0% 3.9% 12.8%

DJ UBS Commodity Total Return -1.1% -1.1% -3.0% -9.9% 1.4% -7.1% -1.2% 3.7%

HFRI Fund of Funds Composite 3.4% 3.4% 4.8% 0.6% 2.1% -0.2% 1.3% 3.9%

HFRI Fund Weighted Composite 3.8% 3.8% 5.5% 1.4% 4.1% 3.0% 4.0% 7.0%

Alerian MLP 19.7% 19.7% 23.0% 16.1% 21.5% 18.5% 16.4% 17.8%

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Source: Bloomberg

Financial Markets PerformancePeriods greater than one year are annualized

As of: March 31, 2013

All returns are in U.S. dollar terms

Russell 3000 Sectors QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

Consumer Discretionary 11.9% 11.9% 21.3% 18.5% 19.0% 12.7% 7.8% 10.1%

Consumer Staples 15.2% 15.2% 19.9% 18.3% 16.3% 10.5% 10.8% 11.3%

Energy 10.5% 10.5% 10.3% 0.5% 12.5% 2.7% 6.6% 13.3%

Financials 12.1% 12.1% 19.3% 9.8% 8.4% -0.6% -3.8% 2.2%

Health Care 15.9% 15.9% 25.5% 20.0% 15.8% 11.5% 7.8% 8.2%

Producer Durables 12.5% 12.5% 17.0% 8.4% 13.3% 4.4% 3.8% 8.7%

Materials & Processing 5.6% 5.6% 11.4% 5.1% 11.9% 3.1% 4.7% 10.3%

Technology 4.3% 4.3% -3.7% 6.1% 9.1% 8.0% 5.8% 9.4%

Utilities 11.8% 11.8% 20.4% 13.8% 15.9% 7.1% 6.7% 9.0%

MSCI Country / Region Returns QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

U.S. 10.7% 10.7% 13.9% 11.2% 12.8% 5.9% 5.1% 8.7%

Europe 2.8% 2.8% 11.3% 1.8% 5.5% -1.4% 2.4% 10.3%

Germany 0.3% 0.3% 9.4% 0.8% 7.1% -1.4% 4.3% 14.1%

United Kingdom 2.5% 2.5% 9.8% 5.4% 8.0% 0.7% 2.8% 9.3%

France 0.6% 0.6% 10.0% -3.1% 1.5% -3.5% 0.6% 9.5%

Pacific 9.8% 9.8% 13.0% 5.3% 5.9% 2.0% 1.6% 9.9%

Japan 11.7% 11.7% 8.7% 4.5% 3.5% -0.4% -2.1% 7.1%

Pacific (ex. Japan) 7.0% 7.0% 20.0% 6.5% 9.8% 6.2% 9.9% 16.2%

EM Asia -1.3% -1.3% 5.6% -1.2% 5.3% 2.5% 7.6% 16.1%

China -4.5% -4.5% 6.9% -3.4% 0.8% 1.1% 10.5% 19.0%

India -2.6% -2.6% 2.3% -9.8% -3.8% -1.7% 5.4% 19.0%

Brazil -0.8% -0.8% -12.5% -12.8% -5.8% -2.5% 8.8% 25.3%

Russia -3.2% -3.2% -6.6% -12.3% 0.0% -8.3% -2.0% 13.9%

EM Latin America 0.9% 0.9% -4.1% -6.2% 0.1% 0.6% 9.6% 23.1%

Mexico 6.1% 6.1% 18.4% 9.4% 12.5% 5.5% 10.7% 21.1%

Canada 1.1% 1.1% 4.2% -4.9% 3.7% 1.7% 5.5% 13.9%

EM EMEA -5.4% -5.4% -0.2% -6.2% 2.5% -0.6% 2.6% 15.7%

Currency Returns vs. USD QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

Euro -2.9% -2.9% -4.1% -5.1% -1.8% -4.3% 0.8% 1.6%

Japanese Yen -8.6% -8.6% -13.7% -6.5% -0.3% 1.1% 3.1% 2.2%

British Pound -6.9% -6.9% -5.3% -2.7% 0.0% -5.5% -1.9% -0.4%

Mexican Peso 4.1% 4.1% 3.7% -1.8% 0.1% -3.0% -1.8% -1.4%

Chinese Yuan 0.3% 0.3% 1.4% 2.6% 3.1% 2.4% 3.6% 2.8%

Canadian Dollar -2.6% -2.6% -1.9% -2.4% -0.1% 0.2% 2.0% 3.6%

Swiss Franc -3.7% -3.7% -5.2% -1.6% 3.4% 0.9% 4.4% 3.5%

Australian Dollar 0.2% 0.2% 0.7% 0.4% 4.2% 2.6% 5.2% 5.3%

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Index Definitions & Disclosures Please note: Due to rounding methodologies of various data providers, certain returns in this report might differ slightly when compared to other sources.

Index Definitions: -Barclays Treasury U.S. T-Bills-1-3 Months includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars and must be fixed rate and non convertible. -Barclays Capital US Treasury Inflation Protected Securities Index measures bonds with fixed rate coupon payments that adjust for inflation as measured by the Consumer Price Index. All bonds must be publicly traded, investment grade and have a minimum maturity of one year and a minimum amount outstanding of $250 million of face value. It currently is comprised of only US Treasury issued securities. -Barclays Muni 5 Year index contains USD-denominated municipal bonds with maturities between 4 and 6 years that are classified as revenue bonds, general obligation bonds, pre-refunded bonds, or insured bonds. -Barclays U.S. Aggregate and Global Aggregate ex. USD Indices are unmanaged market value-weighted performance benchmarks for investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of at least one year. -The Barclays U.S. Corporate High Yield Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds with a maturities of greater than one year. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt. -JP Morgan Government Bond Index-Emerging Market (GBI-EM) Index is a comprehensive emerging market debt index that tracks local currency bonds issued by emerging market governments; The Index is comprised of 14 countries whose weights are capped at 10% to avoid bias to more debt-laden countries. -The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s. -The Dow Jones Industrial Index is based on the average performance of the 30 blue-chip stocks monitored. -The NASDAQ measures all domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. -Russell 3000 is a market-cap-weighted index which consists of roughly 3,000 of the largest companies in the U.S. As such, it represents nearly 98% of the investable U.S. equity market. -Russell 1000 is a market-cap-weighted index which consists of roughly 1,000 of the largest companies in the U.S. -Russell 1000 Growth measures the performance of those Russell 1000 companies with higher P/B ratios and higher forecasted growth values. -Russell 1000 Value measures the performance of those Russell 1000 companies with lower P/B ratios and lower forecasted growth values. -Russell Mid Cap measures the performance of the 800 smallest companies in the Russell 1000 Index. -Russell Mid Cap Growth measures the performance of those Russell Mid Cap companies with higher P/B ratios and higher forecasted growth values. -Russell Mid Cap Value measures the performance of those Russell Mid Cap companies with lower P/B ratios and lower forecasted growth values. -Russell 2000 is a market-cap-weighted index which consists of the 2,000 smallest U.S. companies in the Russell 3000 universe. -Russell 2000 Growth measures the performance of the Russell 2000 companies with higher P/B ratios and higher forecasted growth values. -Russell 2000 Value measures the performance of those Russell 2000 companies with lower P/B ratios and lower forecasted growth values. -MSCI ACWI (All Country World Index) ex. U.S. Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. The index consists of the 48 developed and emerging markets outside the U.S. This index represents approximately 60% of global market capitalization measured in U.S. dollars. -MSCI EAFE is a market-cap weighted index representing 22 of the developed markets outside North America. These 22 countries include 16 European countries and 6 Pacific countries. -MSCI EAFE Value and MSCI EAFE Growth are free float-adjusted market cap indexes designed to measure the equity market performance of developed markets, excluding US & Canada. Five growth and three value variables are used to assign stocks to a specific style index. These include, book value to price, 12-months forward earnings to price, dividend yield, long-term forward earnings per share (EPS) growth rate, short-term forward EPS growth rate, current internal growth rate, long-term historical EPS growth trend, and long-term historical sales per share growth trend. -MSCI EAFE Small Cap Index represents the small cap size segment of the MSCI EAFE Index. The small cap universe consists of the securities of those companies whose securities are not included in the large cap or mid cap segments of a particular market, which together comprise approximately 85% of each market’s free float-adjusted market cap. The small cap segment covers the 85-99% range of each market’s free float-adjusted market cap. -MSCI Emerging Markets is a market-cap weighted index representing the major emerging countries in the world. -Consumer Price Index is the United States Headline Consumer Price Index. -NAREIT Equity REITs measures equity REITs. The index contains health care REITs, but no mortgage and hybrid REITs. -S&P Developed World Property x U.S. measures the investable universe of publicly traded property companies in developed countries outside of the U.S. -S&P Developed World Property measures the investable universe of publicly traded property companies in developed countries. -Dow Jones UBS Commodity Index is composed of futures contracts on 19 physical commodities. No related group of commodities (e.g., energy, precious metals, livestock, grains, etc.) may constitute more than 33% of the index. Livestock = live cattle and lean hogs. Softs = sugar, cotton and coffee. Industrial Metals = aluminum, copper, zinc and nickel. Precious Metals = gold and silver. Grains = wheat, corn, soybeans. Energy = natural gas, crude oil, unleaded gas and heating oil. Petroleum = crude oil, unleaded gas and heating oil. -HFRI Fund Weighted Composite Index - Fund of Funds invest with multiple managers through funds or managed accounts. The strategy designs a diversified portfolio of managers with the objective of significantly lowering the risk (volatility) of investing with an individual manager. The Fund of Funds manager has discretion in choosing which strategies to invest in for the portfolio. A manager may allocate funds to numerous managers within a single strategy, or with numerous managers in multiple strategies. The minimum investment in a Fund of Funds may be lower than an investment in an individual hedge fund or managed account. The investor has the advantage of diversification among managers and styles with significantly less capital than investing with separate managers. PLEASE NOTE: The HFRI Fund of Funds Index is not included in the HFRI Fund Weighted Composite Index. -The Alerian MLP Index is a composite of the 50 most prominent energy master limited partnerships and will be calculated by Standard & Poor’s using a float-adjusted, market capitalization-weighted methodology. -Cambridge Associates LLC calculates end-to-end returns for both a U.S. private equity index and a U.S. venture capital index. For the private equity index, data is compiled from 986 U.S. private equity funds formed since 1986, and for the U.S. venture capital index, 1,368 venture capital funds formed since 1981 are used. Returns include fully liquidated partnerships, and are net of fees, expenses, and carried interest. Historical returns are updated at year end to adjust for changes in the index sample. Data is subject to a one or two quarter lag, and may include the most recent preliminary data release when prudent to minimize the lag in data. Additional: -Equity sector returns are calculated by Russell and MSCI for domestic and international markets, respectively. MSCI sector definitions correspond to the MSCI GICS® classification (Global Industry Classification System); Russell uses its own sector and industry classifications. -MSCI country returns are calculated by MSCI, and are free float-adjusted market capitalization indices that are designed to measure equity market performance in each specific country. -Currency returns are calculated using Bloomberg’s historical spot rate indices and are calculated using the U.S. dollar as the base currency. -The Index of Leading Economic Indicators, calculated by The Conference Board, is used as a barometer of economic activity over a range of three to six months. The index is used to determine the direction and stability of the economy. The composite index of leading indicators, which is derived from 10 leading indicators, helps to signal turning points in the economy and forecast economic cycles. The leading indicators are the following: average weekly hours, average weekly initial claims, manufacturers new orders, both consumer and non defense capital goods, vendor performance, building permits, stock prices, money supply (M2), the interest rate spread and the index of consumer expectations.

20

Asset Class Summaries

Fixed Income Returns for nominal U S treasuries U S TIPS U S investment grade corporates and emerging markets debt instruments were little changed during the

First Quarter 2013

Returns for nominal U.S. treasuries, U.S. TIPS, U.S. investment grade corporates and emerging markets debt instruments were little changed during the quarter. The U.S. yield curve steepened modestly on the long end of the curve as a result of generally positive economic data, including strong housing results. Longer maturities sold off due to higher duration securities being more sensitive to heightened long-term inflation expectations as the result of the Fed’s new commitment requiring a further increase in the money supply. The ten-year Treasury rate reached a high of 2.05% in early March before falling modestly as a result of fresh global macroeconomic fears associated with the E.U.’s bailout of Cyprus. U.S. high yield continued to outperform all other fixed income in the current low yield environment, and the asset class has outperformed treasuries by approximately 10% over the last year. Interest in the space remains strong among investors, and spreads tightened by 150, 40, and 30 basis points for CCC, B, and BB rated debt, respectively. Investment grade g g , p g y , , p , , , p y gcredit spreads ticked down by approximately ten basis points each during the quarter as U.S. investment-grade issuers’ balance sheets remain strong. Financial spreads tightened by 13 basis points on improving loan quality associated with growing capital levels and reductions in leverage; financial spreads are now only five basis points wider than industrials due to strong performance over the last year. Globally, disparity remains in the Eurozone with ten-year German bunds trading at significant premiums to Greek, Spanish, and Italian bonds despite the ECB’s explicit commitment to support the bond markets of overleveraged nations. The Barclays European Aggregate declined during the quarter after the European Union was forced to bail out Cyprus and restructure the country’s banking system. Yields in Brazil, Russia, and India highlight continued inflation fears in emerging markets. Many developed market currencies depreciated against the U.S. dollar during the quarter, especially the yen, which continues to weaken due to the central bank’s economic stimulation efforts to fight deflation. Due to the yen’s considerable deprecation relative to the U.S. dollar, Asian denominated bonds declined significantly for U.S. investors.

TIPS TIPS modestly underperformed treasuries during the quarter. The ten-year breakeven rate remained flat during the quarter, which was due to a slight yield

i k i th t t i ld b i l l ff t b di d li i th t TIPS i ld O ll th h t d i t di t t fpick up in the ten-year treasury yield being largely offset by a corresponding decline in the ten-year TIPS yield. Overall, the short and intermediate part of the real yield curve remains negative within a range of -0.6% to -1.5%, and the 20- and 30-year maturities remained at modestly positive real yields. Market implied inflation of 2.5% remained right on top of the Fed’s recently released threshold for the metric, which suggests the Fed beginning a tightening cycle remains unlikely in the near term.

MunisMunis performance was mixed in the first quarter Lower quality BBB and non-investment grade bonds outperformed higher quality issues with BBB-ratedMunis performance was mixed in the first quarter. Lower quality BBB and non-investment grade bonds outperformed higher quality issues, with BBB-rated bonds returning 1.04% and non-investment grade municipals returning 1.97%. Market technicals were challenged during the tax season, which is typical, as some investors will withdrawal funds from munis to meet tax obligations. Higher personal income tax rates should begin to benefit the tax-exempt market once tax season ends, assuming congressional tax reform doesn’t force investors to question the viability of the asset class’ tax-exempt status. State and local governments have seen a steady rise in state tax revenues overall, but questions remain about the long-term ability to fund pension and health care benefits.

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Foreign Bonds Foreign bonds generated returns of 1 1% and -3 5% on a hedged and unhedged basis respectively during the quarter Disparity remains in the Eurozone

First Quarter 2013

Foreign bonds generated returns of 1.1% and -3.5% on a hedged and unhedged basis, respectively during the quarter. Disparity remains in the Eurozone with ten-year German bunds trading at significant premiums to Greek, Spanish, and Italian bonds despite the ECB’s explicit commitment to support the bond markets of overleveraged nations. The Barclays European Aggregate declined during the quarter after the European Union was forced to bail out Cyprus and restructure the country’s banking system. Yields in Brazil, Russia, and India highlight continued inflation fears in emerging markets. Many developed market currencies depreciated against the U.S. dollar during the quarter, especially the yen, which continues to weaken due to the central bank’s economic stimulation efforts to fight deflation. Due to the yen’s considerable deprecation relative to the U.S. dollar, Asian denominated bonds declined significantly for U.S. investors.

High Yield U.S. high yield continued to outperform all other fixed income in the current low yield environment, and the asset class has outperformed treasuries by approximately 10% over the last year. Interest in the space remains strong among investors, and spreads tightened by 150, 40, and 30 basis points for CCC, B, and BB rated debt, respectively during the quarter. According to JPMorgan, high yield recovery rates have increased to greater than 80%, which is almost double the average rate of 42% observed over the last 25 years. Asset flows into high yield mutual funds and ETFs slowed during the first quarter, and investor appetite shifted to leveraged loan strategies as evident by an estimate by JPMorgan of $11.7 billion of fund inflows into the fairly new asset class during the first quarter.

Balanced U.S. equities advanced during the first quarter as the economy continued to show signs of improvement, and investors were able to shrug off renewed concerns about the Eurozone debt crisis despite the terms of the Cyprus bailout. The S&P 500 Index gained 11% and ended the quarter at a new record hi h hil th R ll 2000 I d f ll i d d 12% H lth t l d tiliti th t f i thigh, while the Russell 2000 Index of smaller companies advanced 12%. Healthcare, consumer staples and utilities were among the top performing sectors, while materials, technology and telecommunications lagged. Across market capitalizations, small- and mid-cap issues generally outperformed large-cap companies. No investment style emerged as a favorite as growth fared best among small-cap names, but trailed among large- and mid-caps. U.S. fixed income markets posted mixed results. Treasuries fell slightly amid better than expected economic data and a steepening yield curve. Lower quality, higher yielding corporate securities performed strongly during the quarter. Mortgage-backed securities were essentially flat due to investor concerns over rising rates.

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Broad Equity The domestic equity rally that began in November of last year on the back of a last minute ‘fiscal cliff’ deal continued on through the first quarter producing

First Quarter 2013

The domestic equity rally that began in November of last year on the back of a last minute fiscal cliff deal continued on through the first quarter producing impressive gains and pushed domestic equities to near all-time highs. The S&P 500 and Dow Jones Industrial Average each produced double digit gains of 10.6% and 11.9% respectively. The NASDAQ Composite trailed with a return of 8.5% for the quarter as the technology heavy index did not participate as much from leading sectors such as health care and consumer staples. Despite the controversial conclusion of the Cyprus bailout near the end of the quarter, developed Europe posted positive gains as well with the MSCI EAFE Index returning 5.2%. Japan posted another impressive quarter after the Japanese Central Bank executed its stimulus strategy. Japanese stocks rose 21.3% while the yen weakened 9.7% to the dollar over the same time period. The emerging markets were the laggards for the first quarter of 2013. Facing the headwind of falling commodity prices and concerns of Chinese economic g g gg q g g y pgrowth most emerging countries indexes were negative for the quarter. China, a large portion of many emerging market indexes, returned -4.5% for the quarter. It was the worst return of the BRIC countries.

Large Cap Value Large cap value stocks outperformed their large cap growth counterparts. For the quarter, the Russell 1000 Value Index advanced 12.3%, the Russell 1000 Growth Index ended up 9.5%, and the Russell 1000 Index gained 11%. Across market capitalizations, large cap stocks marginally underperformed small-cap issues. Despite the market rally, the quarter was not a traditional “risk on” environment. Instead, investors seemed to be cautiously balancing the positive economic news in the U.S. against renewed concerns about the Eurozone debt crisis and survival of the currency union following the bailout in Cyprus. For example, the more defensive healthcare, consumer staples, and utilities sectors all outperformed, while several cyclical sectors underperformed, including materials. Particularly weak performances from gold mining and platinum/precious metals stocks held back gains within materials.

L C CLarge Cap Core The S&P 500 Index ended the quarter at a record high, effectively recouping all of its losses since the 2008-2009 financial crisis. Healthcare, consumer staples and utilities were among the top performing sectors, while materials, technology and telecom lagged. No investment style emerged as a favorite as growth fared best among small-cap names, but trailed among large-caps. Meanwhile, smaller-cap issues generally outperformed larger-cap companies. While the economic picture continues to improve, headwinds remain as 2013 gets under way. U.S. lawmakers appear gridlocked in the debate surrounding the budget, with Democrats resisting cuts to entitlement programs such as Social Security and Medicare, while Republicans continue to push back against higher taxes In Europe the Cyprus bailout left many wondering if the heavy losses inflicted on Cypriot depositors would be the template for other Eurozonehigher taxes. In Europe, the Cyprus bailout left many wondering if the heavy losses inflicted on Cypriot depositors would be the template for other Eurozone countries requiring similar bailouts. Meanwhile, on the geopolitical front, rhetoric out of North Korea will be closely watched as threats against the U.S. and South Korea intensified.

3

23


Large Cap Growth Large cap growth stocks underperformed their large cap value counterparts For the quarter the Russell 1000 Growth Index ended up 9 5% the Russell

First Quarter 2013

Large cap growth stocks underperformed their large cap value counterparts. For the quarter, the Russell 1000 Growth Index ended up 9.5%, the Russell 1000 Value index gained 12.3%, and the Russell 1000 Index rose 11%. Across market capitalizations, small-cap issues outperformed large-cap companies. Defensive areas of the market outperformed those of a more cyclical nature. Major biotech companies such as Biogen, Celgene and Gilead Sciences led the healthcare sector higher. Biogen won approval for its first multiple sclerosis pill, while Gilead announced that it could continue testing a treatment for hepatitis C without modification. Meanwhile, Celgene rose after phase III test results showed that Abraxane, a FDA-approved treatment for breast and lung cancer, extended the life of late-stage pancreatic cancer patients. Within the information technology sector, shares of Apple fell as it reported weaker-than-expected quarterly results as investors became increasingly concerned about gross margin pressures and intensifying competition.p q y g y g g p y g p

Mid Cap The Russell Midcap Index returned 13% over the quarter outpacing both large and small capitalization core indexes. Energy, consumer staples, and industrials led the way with 17.5%, 17.3%, and 14.5% returns respectively. Middle capitalization value stocks outperformed core and growth stocks over the quarter matching the most recent trends of style performance. Notable performers included Netflix returning 104% over the quarter after investors were positively surprised by earnings and improved subscription rates and popular professional networking company Linkedin rose 53% as revenue grew 81% year over year and during the fourth quarter. All ten GIC sectors in the index had positive returns over the quarter.

Small Cap ValueThe Russell 2000 Value Index gained 11.6% in the first quarter of 2013. Small capitalization stocks were the only capitalization segment that the value index trailed its growth and core counterparts. However, 1 year returns still favor value over core and core over growth. Investors did not only favor valuation sensitive stocks as had been the case in the recent previous quarters. The small capitalization environment has become more of a stock pickers market as b th d f i d li l t h d k t f t d k f I th d it di ti i d t i l d fi i l th tboth defensive and cyclical sectors had pockets of strong and weak performance. In the end it was consumer discretionary, industrials, and financials that led the quarter’s results, however, all sectors contributed positive returns with the exception of telecommunication services that posted a negative 3.6% return.

Small Cap CoreThe Russell 2000 Core Index gained 12.4% in the first quarter. Small capitalization stocks were the only capitalization segment that the value index trailed its growth and core counterparts Investors did not only favor valuation sensitive stocks as had been the case in the recent previous quarters Health careits growth and core counterparts. Investors did not only favor valuation sensitive stocks as had been the case in the recent previous quarters. Health care, industrials, and financials gained 14.3%, 14%, and 13.1% respective. All ten GIC sectors contributed positive returns during the quarter.

Small Cap Growth The Russell 2000 Growth gained 13.2% during the quarter. Small capitalization stocks were the only capitalization segment that the growth index outperformed its value and core counterparts. However, 1 year returns still favor value over core and core over growth. Investors did not only favor valuation sensitive stocks as had been the case in the recent previous quarters. The small capitalization environment has become more of a stock pickers market as

4

p q p pboth defensive and cyclical sectors had pockets of strong and weak performance. Health care, industrials, and financials led the way with 15.2%, 14.8%and 14.7% respectively.

24


International Equity International markets advanced with the MSCI EAFE Index rising 5% for the quarter Canada gained 1% as the central bank left interest rates unchanged at

First Quarter 2013

International markets advanced, with the MSCI EAFE Index rising 5% for the quarter. Canada gained 1% as the central bank left interest rates unchanged at 1%. The United Kingdom rose 2% as the Bank of England kept its key interest rate on hold at 0.5%. For the first time since 1978, the U.K. lost its coveted AAA credit rating after a Moody’s downgrade by one notch, citing expectations for sluggish growth in the near-term as well as significant challenges with the government’s debt reduction program. The ECB left rates unchanged at a record low of 0.75% after reporting that the Eurozone recession had deepened during the prior quarter with the economy contracting 0.6%. Among the largest European markets, France and Germany each gained less than 1%, while Italy and Spain declined 10% and 5%, respectively. Meanwhile, peripherals, such as Greece and Ireland, rose 14% and 13%, respectively. Within the Pacific region, Japan rose 12% as the central bank set a 2% inflation target and stepped up its stimulus program in an attempt to combat deflation. Australia g , p g pp p p g prose 9% as strength among financials more than offset weakness among mining stocks.

Emerging Markets In the emerging markets, the MSCI EM posted a 2% loss on weakness from select Emerging Asian, Latin American and EMEA (Eastern Europe, Middle East and Africa) countries. Within Asia, China declined 5% amid worries over economic growth. Among other large Asian markets, South Korea and India each lost 3%. In Latin America, Brazil declined 1% as investors grew more cautious about the government’s economic policy and corporate earnings. Mexico rose 6% during the quarter, while the smaller markets of Colombia and Peru lost 7% and 3%, respectively. Among EMEA countries, South Africa declined 9% as the rand weakened and mining-related shares came under pressure. In the Middle East, Turkey rose 8%, while Egypt declined 11%. Within Eastern Europe, Hungary declined 7%, and the Czech Republic and Poland each posted double-digit losses of 14% and 12%, respectively. Meanwhile, Russia ended down 3% for the quarter.

International Small Cap Equity I t ti l ll iti d d th fi t t f 2013 hi h b t ll l d U S it k t F th t th MSCI EAFE S llInternational small cap equities ended the first quarter of 2013 higher, but generally lagged U.S. equity markets. For the quarter, the MSCI EAFE Small Value Index advanced 9.4%, the MSCI EAFE Small Growth Index ended up 7.5%, and the MSCI EAFE Small Index gained 8.5%. Across market capitalizations, smaller-cap international stocks outperformed larger-cap international stocks. Dispersion across regions and sectors was significant. In general, the more defensive areas of the market outperformed, while sectors perceived to be more economically sensitive typically lagged. For the quarter, Pacific developed stocks generally outperformed those in the developed European region. Among emerging markets, Emerging Asian and Latin American countries generally outperformed those in the EMEA (Eastern Europe, Middle East and Africa) region.

Global Equity During the first quarter of 2013, the S&P 500 Index ended up 11%, while the Russell 2000 Index of smaller companies gained 12%. Meanwhile, the Dow Jones Industrial Average and the technology-heavy NASDAQ Composite advanced 12% and 9%, respectively. International markets posted mixed results, with the MSCI EAFE advancing 5%. Among Europe's largest economies, Germany, France, and the United Kingdom contracted in the prior quarter, which was not expected. European politics continued to add to the economic uncertainty, with a general election in Italy leaving the country's commitment to austerity programs unclear. Within the Pacific region, Japan and Australia advanced 12% and 9%, respectively. In the emerging markets, the MSCI EM

5

y p g g , p , p y g g ,posted a 2% loss. Most major emerging markets posted losses, while smaller markets such as the Philippines, Thailand and Indonesia posted double-digit gain, supported by signs of improving domestic economies.

25


Commodities Down trends in a variety of commodities continued both during the quarter and into April Declines were caused by concerns over prospects for global

First Quarter 2013

Down trends in a variety of commodities continued both during the quarter and into April. Declines were caused by concerns over prospects for global growth, rising production and events in Cyprus. Weakness in industrial metals was particularly driven by macroeconomic and financial outlooks. Energy was the best performing sector, led by natural gas. Larger than expected storage withdrawals caused natural gas to finish the quarter near its highest level in 18 months. WTI crude outperformed Brent as weak physical demand and technicals weighed on Brent. Grain prices plunged due to demand being weaker than forecast and healthy supply levels globally. Silver, platinum and palladium also performed poorly but investors are most concerned about gold’s continuing decline from its peak in September 2011. Lower demand and macroeconomic weakness in China are a few of the primary drivers.

Global Real Estate Asia rallied, led by strength in Japanese REITs and developers. Improved office market fundamentals and expectations of cap rate compression from expansionary policy measures led to gains. Hong Kong and China rallied early in the quarter but concerns over restrictive policy measures negatively influenced results. European REITs declined due to flat real estate fundamentals and currency movements as both the EUR and GBP weakened significantly against the USD. Both the UK and the Eurozone performed poorly. Sweden and Greece were the best performing countries for the quarter. Domestic REITs produced solid gains across almost every sector. Strong NOI growth coupled with access to capital and investors search for yield drove performance. Private real estate values for prime, high quality assets have fully recovered to peak levels achieved in mid-2007. Lower levels of new supply continued during the quarter with multi-family and apartments being the only sector near historic norms. Smaller market cap names outperformed their larger market cap peers as investors focused on dividend yield and FFO multiples. The suburban office subsector rallied along with an uptick in leasing momentum in secondary markets with jobs growth. Strong fundamentals in industrial REITs led to gains. Healthcare REITs rallied, benefiting from the demand for dividend yield and lower regulatory concerns.

H d F d (b d li i t di t H d F d R h I )Hedge Funds (based on preliminary reports according to Hedge Fund Research, Inc.)Hedge fund returns during the first quarter were positive and broad based. Event driven produced solid results throughout the quarter as continued strength in the corporate transaction environment drove returns in activist and distressed special situations strategies. Equity hedge was the best performing strategy as fundamental value biased managers were able to participate during the market rally. Technology and healthcare sectors outperformed, while short-biased and emerging markets focused managers lagged due to upward market technicals and softening economic data, specifically in India and Eastern Europe. Relative value continued to benefit from structured credit and arbitrage sub strategies. Alternative yielding strategies also produced outsized gains. Tactical trading managers delivered muted positive results during the quarter Systematic trading strategies delivered favorable results while commoditiesTactical trading managers delivered muted positive results during the quarter. Systematic trading strategies delivered favorable results while commodities detracted, specifically metals trading. Fund of hedge funds produced solid returns during the quarter but modestly underperformed direct hedge funds. After producing positive results in nine of ten months the industry reached a new high water mark in March, and those investors that are putting capital to work are gravitating toward equity and event driven strategies.

6

26


MLPsEnergy MLPs were one of the strongest performing asset classes during the quarter Results were aided by relatively strong earnings and a record total of

First Quarter 2013

Energy MLPs were one of the strongest performing asset classes during the quarter. Results were aided by relatively strong earnings and a record total of $4.7 billion being raised during the first quarter of 2013 for publicly-traded MLP products. However, firms will be able to put the money to work due to continuing strong growth, supported by significant organic capital spending opportunities. Following the quarterly advance, MLP yields are trading near one standard deviation wide relative to a variety of benchmarks, including REITs and BBB bonds. Yorkville noted that all of its sector indexes posted positive total returns during the quarter, with five sectors returning more than 20%. Crude oil & refined products subsectors outperformed during the quarter. The continued increase in North American oil production along with a cost advantage over imported crude led to strong fundamentals and pipeline volumes. Coal and propane continued to underperform due to fundamental and regulatory concerns. Natural gas liquids delivered mixed results as weaker ethane prices p p p g y g q pmitigated gains from growing basins.

7

27

First Quarter 2013 Knowledge CollegeQ g g

Aside from evaluating manager performance in absolute terms or in relation to a peer group, a benchmark is typically used to represent “the market” for an assetclass. It is often a mandate for investment managers to relate their respective investment strategies to an appropriate benchmark index as a tool for investors toobjectively discern if a manager has added value above the market return while also taking into account their cost

High Yield Benchmarking in a Low Yield Environment

Ri k C t i Withi th B h k

objectively discern if a manager has added value above the market return while also taking into account their cost.

Fixed income indexes complicate this dynamic to the extent that index replication is often prohibitively difficult. Furthermore, in areas such as High Yield, indexexposure to largely “uninvestable” risky sectors of the High Yield universe exacerbates the difficulties of fund managers who use the index as a proxy for marketperformance. Accordingly, recent High Yield manager underperformance must be qualified within the context of the current market environment and what factorshave subsidized index returns.Figure 1:

BOAML US High Yield Index (as of 6/30/12) Mkt Val Price YTW STW (bp)BOAML US High Yield Index (Unfiltered) 100.00% $100.47 7.38% 655CCC or Lower 9.44% $83.89 13.48% 1,271Maturity > 10 Years 7.44% $94.43 7.86% 590

Risk Categories Within the Benchmark What’s unique about High Yield Indexes:

The large number of fixed income securities available forinclusion in fixed income indexes results in large differences inthe number of constituents among them. Also, unlike stocks,bonds mature and may be replaced in fixed income indexes.Illi idit t ti t d hi h t f tit t

Figure 1:

Non-US Domicile 11.87% $96.24 8.39% 753Financial 11.28% $96.84 7.64% 666Challenged Industry* 2.59% $102.53 6.70% 591144A for Life 20.09% $98.53 8.37% 751Spread > 1000 Basis Points (bp) 9.75% $76.67 16.95% 1,636

Illiquidity, transaction costs, and high turnover of constituentsecurities make it both difficult and expensive for fixed incomeportfolio managers to replicate a fixed income index.

In addition to the inherent issues in fixed income indexing, HighYield indexes are also comprised of securities that many fundmanagers wish to avoid altogether In a 2012 study the BofAp ( p)

Face Value < $250 Million 9.13% $99.16 8.26% 749Total Risk Sectors 50.98% $96.49 8.60% 766All Other Sectors 49.02% $104.97 6.10% 517Note: Price for each category is par-w eighted. YTW and STW are market-w eighted. Source: Shenkman Capital, BofA Merrill LynchYTW Th i ld t t t th l t t ti l i ld th t b i d b d ith t th i

managers wish to avoid altogether. In a 2012 study, the BofAMerrill Lynch US High Yield Benchmark was broken out by itsexposure to various risk sectors. Figure 1 illustrates theappreciably high percentage of the index that is comprised ofinvestments often considered “uninvestable” by fund managersdue to their contributions to overall risk.

YTW - The yield to w orst represents the low est potential yield that can be received on a bond w ithout the issuer actually defaulting.STW - Spread to w orst measures the difference from the w orst performing security to the best, and can be seen as a measure of dispersion of returns w ithin a given market.*Challenged industries include airlines, real estate development and management, and building and construction.

Relative underperformance to the index must be consideredwithin the context of how the current rate environment is affectingHigh Yield index returns. Active management lagging wheninvestors are “reaching for yield” may demonstrate the high-quality biases in-play for many strategies.

1

28

First Quarter 2013 Knowledge CollegeQ g gHigh Yield Benchmarking in a Low Yield Environment

Passive Investing in High Yield:

Further evidence of the prohibitive difficulties in matching High Yield index

Figure 2:

p g greturns can be seen in the relative performance of passively managed HighYield ETFs in this space.

Passive ETFs in any asset class differ from their actively managedcounterparts insofar as they allow investors to capture the beta of themarket, while foregoing alpha generating opportunities.

The Blackrock iShares iBoxx $ High Yield Corporate Bond ETF (HYG) andState Street SPDR Barclays Capital High Yield Bond ETF (JNK) compriseapproximately 89% of the now nearly $32 billion in High Yield ETF assets.1

Given the passive nature of these investments, portfolio managementfocuses on tracking an index that primarily consists of the High Yieldfocuses on tracking an index that primarily consists of the High Yieldmarket’s most liquid issues. There is less of a focus on selecting qualitycredits, which translates into a considerable drag on performance when themarket pulls back.

Historical ETF relative performance as seen in Figure 2 demonstrates theinherent issues in trying to replicate index performance. Despite offering themost favorable passive investment terms, both HYG and JNK lag thestandard High Yield benchmark by considerable margins over trailingperiods. In fact, both funds show a history of ranking amongst the bottomhalf of the High Yield peer group.

Conclusion:

Investors should be aware of the unique nature of High Yield indexes when evaluating manager performance in the High Yield space. Illiquidity, transactioncosts, and exposure to risky segments of the market make it exceedingly difficult for an active manager to add value above the index return in strong up-marketswhen quality issues tend to lag. Indeed, these difficulties are too pervasive for even the most liquid High Yield ETFs to consistently track index performance. Thisinsight is particularly pertinent in a market environment such as the current one where investors have displayed a seemingly insatiable appetite for yield.

For more information, visit our website or contact your investment consultant at DiMeo Schneider & Associates, L.L.C.

2

1 Source: Bloomberg

29

ACCOUNT RECONCILIATION

BENCHMARK COMPOSITION

TRAILING PERFORMANCE SUMMARY

CALENDAR YEAR PERFORMANCE SUMMARY

CurrentQuarter YTD 1

Year3

Years5

YearsSince

InceptionInception

DateHistorical Account Composite 12/31/2003

Beginning Market Value 36,308,947 36,308,947 35,173,581 29,011,471 26,071,362 16,533,579

Net Contributions 1,690,612 1,690,612 1,019,345 1,411,528 2,272,011 4,507,423

Gain/Loss 1,674,905 1,674,905 3,481,538 9,251,465 11,331,091 18,633,462

Ending Market Value 39,674,464 39,674,464 39,674,464 39,674,464 39,674,464 39,674,464


Year3

Years5

Years10

YearsSince

InceptionInception

DateHistorical Account Composite 4.53 4.53 9.93 9.79 7.22 8.77 7.71 12/31/2003Focused Index Benchmark 4.34 4.34 8.60 N/A N/A N/A 7.77 12/01/2010

Broad Index Benchmark 5.03 5.03 9.04 8.66 4.76 8.47 6.67 12/31/2003

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003Historical Account Composite 13.54 -1.56 18.01 31.50 -26.08 8.07 12.52 9.11 8.88 19.07Focused Index Benchmark 10.94 -1.58 N/A N/A N/A N/A N/A N/A N/A N/A

Broad Index Benchmark 12.12 0.70 12.62 24.89 -29.09 7.98 14.67 7.25 11.64 25.23

Allocation Mandate Weight (%)Mar-2013Barclays US Universal Index 33.00

Russell 3000 Index 33.00

MSCI AC World ex USA 14.00

DSA Hedge Fund Index 20.00

Concordia University-Nebraska

EndowmentMarch 31, 2013

30

6

Concordia University, Nebraska & Concordia Foundation, Inc.Portfolio Engineer™

6.5%

7.0%

7.5%

8.0%

Expe

cted

Ret

urn

Target Allocation

3/31/2013

12/31/2012

Past Allocations

Constraint Radius = 0.45%

Cash TIPS Muni Bond

US Bond

For. Dev. Bond

HY Bond

EM Bond

LC US Equity

MC US Equity

SC US Equity

Real Estate

Int'l Equity

EM Equity

Commod. Fut.

HFs Portfolio MLPs Expected

ReturnExpected

Risk

Distance From

Target

Rebalance Required

Target 0.0% 3.0% 0.0% 7.0% 10.0% 9.0% 4.0% 9.0% 0.0% 3.0% 7.0% 8.0% 6.0% 9.0% 20.0% 5.0% 7.01% 10.94% N.A. N.A.3/31/2013 0.0% 2.9% 0.0% 6.8% 9.9% 9.0% 3.9% 9.2% 0.0% 3.1% 7.1% 7.8% 5.8% 8.6% 20.4% 5.3% 7.03% 10.91% 0.04% No

12/31/2012 0.0% 5.9% 0.0% 7.0% 6.9% 7.0% 5.0% 11.8% 3.1% 1.0% 6.2% 9.3% 4.3% 7.7% 20.1% 4.6% 7.01% 10.95% 0.01% No9/30/2012 0.0% 6.0% 0.0% 7.1% 7.1% 7.1% 4.9% 12.0% 2.9% 1.0% 6.1% 8.8% 4.0% 8.5% 19.6% 4.9% 6.97% 10.85% 0.10% No6/30/2012 0.1% 6.2% 0.0% 7.1% 7.1% 7.1% 4.9% 11.8% 2.9% 1.0% 6.3% 8.6% 3.9% 8.0% 20.0% 4.9% 6.95% 10.77% 0.18% No3/31/2012 0.1% 10.6% 0.0% 7.9% 5.9% 5.0% 4.9% 14.5% 3.0% 2.1% 6.0% 12.1% 5.0% 7.7% 10.2% 4.9% 6.85% 11.51% 0.59% Yes

12/31/2011 0.1% 11.6% 0.0% 7.8% 4.8% 4.0% 0.0% 13.5% 2.1% 5.4% 6.3% 11.8% 8.0% 9.6% 9.6% 5.5% 7.14% 12.01% 1.08% Yes9/30/2011 2.1% 13.3% 0.0% 8.2% 5.2% 4.0% 0.0% 12.5% 1.9% 4.6% 5.5% 10.3% 7.0% 9.9% 10.2% 5.3% 6.77% 11.17% 0.32% No6/30/2011 0.0% 11.5% 0.0% 7.9% 4.7% 3.9% 0.0% 13.5% 2.2% 5.3% 6.1% 12.0% 7.8% 10.2% 9.8% 5.2% 7.14% 12.00% 1.07% Yes3/31/2011 0.1% 11.2% 0.0% 7.6% 4.6% 3.9% 0.0% 13.4% 2.2% 5.5% 5.9% 11.9% 7.6% 10.8% 9.9% 5.5% 7.16% 12.00% 1.07% Yes

12/31/2010 0.1% 11.4% 0.0% 7.7% 4.8% 3.9% 0.0% 13.1% 2.1% 5.3% 5.9% 11.9% 7.9% 10.6% 10.0% 5.4% 7.14% 11.97% 1.04% Yes9/30/2010 0.1% 10.4% 0.0% 10.3% 2.1% 7.1% 0.0% 14.8% 2.5% 4.9% 10.7% 13.5% 8.4% 10.5% 0.0% 4.9% 7.09% 13.06% 2.12% Yes6/30/2010 0.1% 11.5% 0.0% 10.9% 2.3% 7.5% 0.0% 14.6% 2.4% 4.9% 9.9% 12.7% 7.8% 10.2% 0.0% 5.2% 6.97% 12.71% 1.77% Yes

The Target Allocation Changed Effective 3/1/2013.

6.0%9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5%

Expected Risk (Standard Deviation)

31

March 31, 2013 December 31, 2012

December 31, 2012March 31, 2013Market Value

($)Allocation

(%)Target

(%)TIPS 2,130,613 5.9 6.0

Broad Domestic Fixed 2,554,135 7.0 7.0

High Yield Fixed 2,530,499 7.0 7.0

International Fixed Hedged 2,521,924 6.9 7.0

Emerging Markets Debt 1,829,577 5.0 5.0

Large Cap 4,297,242 11.8 12.0

Mid Cap 1,111,664 3.1 3.0

Small Cap 368,926 1.0 1.0

International Equity 3,377,719 9.3 9.0

Emerging Markets 1,549,301 4.3 4.0

Real Estate Domestic 2,255,704 6.2 6.0

Commodities 2,808,553 7.7 8.0

MLP 1,684,524 4.6 5.0

Hedge Funds 7,284,046 20.1 20.0

Cash/Equivalents 4,520 0.0 0.0

Total Fund 36,308,947 100.0 100.0

Market Value($)

Allocation(%)

Target(%)

TIPS 1,166,898 2.9 3.0

Broad Domestic Fixed 2,704,606 6.8 7.0

High Yield Fixed 3,565,147 9.0 9.0

International Fixed Hedged 3,943,007 9.9 10.0

Emerging Markets Debt 1,544,121 3.9 4.0

Large Cap 3,640,691 9.2 9.0

Small Cap 1,233,624 3.1 3.0

International Equity 3,112,938 7.8 8.0

Emerging Markets 2,320,881 5.8 6.0

Real Estate Domestic 2,799,536 7.1 7.0

Commodities 3,427,746 8.6 9.0

MLP 2,119,756 5.3 5.0

Hedge Funds 8,093,236 20.4 20.0

Cash/Equivalents 2,277 0.0 0.0

Total Fund 39,674,464 100.0 100.0



32


Year3

Years5

Years10

YearsSince

InceptionInception

DateHistorical Account Composite 4.53 4.53 9.93 9.79 7.22 8.77 7.71 12/31/2003Broad Index Benchmark 5.03 5.03 9.04 8.66 4.76 8.47 6.67 12/31/2003

Focused Index Benchmark 4.34 4.34 8.60 N/A N/A N/A 7.77 12/01/2010



33

Up Market Capture

Down Market Capture

Concordia University-NebraskaVersus Target Asset Allocation

As of March 31, 2013

34

1Year

3Years

5Years

7Years

10Years

Return 9.93 9.79 7.22 6.48 8.77

Standard Deviation 6.19 11.11 14.53 12.86 18.06

Downside Risk 4.24 6.74 9.94 8.78 11.06

vs. Broad Index Benchmark

Alpha 0.20 0.65 2.41 1.53 0.86

Beta 1.07 1.05 0.99 0.99 1.04

Consistency 66.67 58.33 63.33 58.33 52.50

Information Ratio 0.67 0.49 0.98 0.67 0.09

M-Squared 0.04 0.44 2.43 1.51 -2.32

R-Squared 0.96 0.96 0.97 0.97 0.43

Tracking Error 1.28 2.31 2.38 2.18 13.64

Treynor Ratio 0.09 0.09 0.08 0.06 0.08

vs. Focused Index Benchmark

Alpha 1.34 N/A N/A N/A N/A

Beta 0.99 N/A N/A N/A N/A

Consistency 91.67 N/A N/A N/A N/A

Information Ratio 4.01 N/A N/A N/A N/A

M-Squared 1.45 N/A N/A N/A N/A

R-Squared 1.00 N/A N/A N/A N/A

Tracking Error 0.31 N/A N/A N/A N/A

Treynor Ratio 0.10 N/A N/A N/A N/A

vs. Citigroup 3 Month T-Bill

Sharpe Ratio 1.55 0.89 0.53 0.44 0.46

Concordia University-NebraskaHistorical Account Composite


Calculation based on monthly periodicity.

35

5 YEARS3 YEARS

10 YEARS7 YEARS



36

vs Benchmark3

Years

vs Benchmark5

Years

vs Peer Group3

Years

vs Peer Group5

Years

Alpha3

Years

Alpha5

Years

Consistency5

YearsExpense

RatioFirm/Strategy

Evaluation Status

Vanguard Inflation-Protected Secs Adm Discuss

Loomis Sayles Bond Instl Discuss

PIMCO Total Return Instl Pass

JPMorgan High Yield Select Discuss

PIMCO Foreign Bond (USD-Hedged) I Pass

PIMCO Emerging Local Bd Fd Inst Discuss

Dodge & Cox Stock Discuss

iShares Core S&P 500 ETF Pass

iShares Russell 1000 Growth Index Pass

DFA US Small Cap Value I Pass

Conestoga Small Cap Pass

American Funds EuroPacific Gr F-2 N/A N/A N/A N/A N/A

Aberdeen Emerging Markets Instl Fd Instl Pass

Nuveen Real Estate Secs I Pass

PIMCO Commodity Real Ret Strat Instl N/A N/A N/A N/A

Kayne Anderson MLP Invst Co N/A N/A N/A N/A

Tortoise Energy Infrastructure Corp. N/A N/A N/A N/A

Grosvenor Inst'l Partners, L.P. N/A N/A N/A N/A

Magnitude International N/A N/A N/A N/A

Concordia University-NebraskaManager Evaluation Summary


37

Concordia University-NebraskaManager Evaluation Summary


Outperform Benchmark

Underperform Benchmark

vs Benchmark

Legend For Overall Criteria

1-50 Percentile

51-100 Percentile

vs Peer Group

50% or greater

Lower than 50%

Consistency

Lower than category average

Higher than category average

Expense Ratio

Subjective*

Subjective*

Firm/Strategy Evaluation

Discuss: Trailed 4 or more categories or recognized within Firm/Strategy Evaluation category

Status

Positive Alpha

Negative Alpha

Alpha

* Recognition within Firm/Strategy Evaluation category the result of a FLASH memo issued by DiMeo Schneider Investment Committee based on qualitative factors.

38

Fund &Cat Avg

ExpRatio

Allocation

MarketValue

($)%

Performance(%)

CurrentQuarter YTD Fiscal

YTD1

Year3

Years5

Years10

Years 2012 2011 2010

Feb-2010To

Mar-2013

Jan-2004To

Mar-2013

Total PlanHistorical Account Composite 39,674,464 100.0 4.5 4.5 11.3 9.9 9.8 7.2 8.8 13.5 -1.6 18.0 11.6 7.4Focused Index Benchmark 4.3 4.3 10.4 8.6 N/A N/A N/A 10.9 -1.6 N/A N/A N/A

Broad Index Benchmark 5.0 5.0 10.7 9.0 8.7 4.8 8.5 12.1 0.7 12.6 10.4 6.3

CPI + 5.0% 2.6 2.6 5.2 6.5 7.4 6.8 7.5 6.8 8.1 6.6 7.4 7.7

TIPSVanguard Inflation-Protected Secs Adm 1,166,898 2.9 -0.3 -0.3 2.5 5.8 8.5 5.6 N/A 6.9 13.3 6.3 7.7 N/A 0.11Barclays U.S. Treasury: U.S. TIPS -0.4 -0.4 2.5 5.7 8.6 5.9 6.3 7.0 13.6 6.3 7.7 6.2

IM U.S. TIPS (MF) Median -0.4 -0.4 2.2 5.0 7.7 5.2 5.8 6.4 11.9 5.9 7.0 5.7 0.83

Vanguard Inflation-Protected Secs Adm Rank 41 41 35 17 12 27 N/A 25 12 29 15 N/A

Broad Domestic FixedLoomis Sayles Bond Instl 1,960,235 4.9 2.3 2.3 10.4 10.5 9.7 8.7 9.7 15.1 3.8 13.6 10.5 8.3 0.63Barclays Aggregate -0.1 -0.1 1.7 3.8 5.5 5.5 5.0 4.2 7.8 6.5 5.3 5.1

IM U.S. Broad Market Core Fixed Income (MF) Median 0.2 0.2 3.3 5.4 6.1 5.9 4.8 6.8 6.6 7.5 6.0 4.9 0.92

Loomis Sayles Bond Instl Rank 1 1 1 2 1 3 1 1 93 1 1 1

PIMCO Total Return Instl 744,370 1.9 0.6 0.6 5.0 7.9 6.9 7.8 6.7 10.4 4.2 8.9 7.0 6.8 0.46Barclays Aggregate -0.1 -0.1 1.7 3.8 5.5 5.5 5.0 4.2 7.8 6.5 5.3 5.1

IM U.S. Broad Market Core Fixed Income (MF) Median 0.2 0.2 3.3 5.4 6.1 5.9 4.8 6.8 6.6 7.5 6.0 4.9 0.92

PIMCO Total Return Instl Rank 11 11 14 9 22 7 4 6 91 25 20 3

High Yield FixedJPMorgan High Yield Select 3,565,147 9.0 2.9 2.9 10.8 12.2 10.0 10.6 9.7 14.8 2.6 14.7 10.5 8.4 0.86Barclays US Corp: High Yield 2.9 2.9 11.1 13.1 11.2 11.6 10.1 15.8 5.0 15.1 11.8 8.8

IM U.S. High Yield Bonds (MF) Median 2.6 2.6 10.5 11.9 10.0 9.4 8.6 14.7 3.3 14.0 10.5 7.4 1.21

JPMorgan High Yield Select Rank 38 38 43 43 53 19 13 48 63 36 52 11

International Fixed HedgedPIMCO Foreign Bond (USD-Hedged) I 3,943,007 9.9 1.5 1.5 8.7 10.4 8.2 8.3 6.5 11.2 6.8 9.2 8.3 6.9 0.50Barclays Global Aggregate Ex USD (Hedged) 1.1 1.1 4.6 5.8 4.4 4.6 4.4 6.5 3.9 3.3 4.4 4.7

IM International Fixed Income (MF) Median -2.7 -2.7 2.2 2.2 4.5 3.7 5.3 6.7 3.0 6.4 4.3 4.8 1.08

PIMCO Foreign Bond (USD-Hedged) I Rank 2 2 9 2 3 6 25 17 7 24 5 13

Concordia University-NebraskaEndowment


39



Fund &Cat Avg

ExpRatio

Allocation

MarketValue

($)%

Performance(%)


YTD1

Year3

Years5

Years10

Years 2012 2011 2010

Feb-2010To

Mar-2013

Jan-2004To

Mar-2013

Emerging Market DebtPIMCO Emerging Local Bd Fd Inst 1,544,121 3.9 -0.2 -0.2 8.1 6.9 7.8 8.4 N/A 15.8 -0.8 15.6 9.3 N/A 0.90JPM GBI-EM Global Diversified -0.1 -0.1 9.0 7.7 7.9 8.4 11.9 16.8 -1.8 15.7 9.2 11.4

IM Emerging Markets Debt (MF) Median -1.0 -1.0 9.1 10.7 9.9 9.5 10.4 18.7 5.4 12.7 10.8 9.3 1.26

PIMCO Emerging Local Bd Fd Inst Rank 30 30 79 95 90 78 N/A 86 85 13 89 N/A

Large CapDodge & Cox Stock 1,226,842 3.1 11.7 11.7 24.2 20.3 11.6 4.6 9.1 22.0 -4.1 13.5 14.0 6.0 0.52Russell 1000 Value Index 12.3 12.3 21.4 18.8 12.7 4.8 9.2 17.5 0.4 15.5 15.4 6.3

IM U.S. Large Cap Value Equity (MF) Median 11.3 11.3 19.9 15.2 10.5 4.2 8.2 15.6 -2.2 12.9 13.0 5.5 1.25

Dodge & Cox Stock Rank 29 29 4 1 27 41 23 1 72 41 24 35

iShares S&P 500 Index 1,206,238 3.0 10.6 10.6 17.1 13.9 12.6 5.8 8.5 15.9 2.0 15.0 15.1 5.9 0.07S&P 500 10.6 10.6 17.2 14.0 12.7 5.8 8.5 16.0 2.1 15.1 15.2 6.0

IM U.S. Large Cap Core Equity (MF) Median 10.4 10.4 17.2 13.0 10.9 4.9 8.0 15.4 -0.6 13.0 13.2 5.4 1.23

iShares S&P 500 Index Rank 41 41 53 32 15 27 33 42 23 20 14 33

iShares Russell 1000 Growth Index 1,207,611 3.0 9.5 9.5 14.5 9.9 12.9 7.1 8.4 15.0 2.5 16.5 15.4 6.0 0.20Russell 1000 Growth Index 9.5 9.5 14.7 10.1 13.1 7.3 8.6 15.3 2.6 16.7 15.6 6.2

IM U.S. Large Cap Growth Equity (MF) Median 8.6 8.6 13.9 7.5 10.5 5.4 7.7 14.9 -1.8 15.1 13.2 5.4 1.33

iShares Russell 1000 Growth Index Rank 17 17 41 24 13 17 30 48 12 35 16 30

Small CapDFA US Small Cap Value I 605,250 1.5 13.8 13.8 28.0 22.1 14.4 8.5 13.6 21.7 -7.5 30.9 18.9 8.2 0.52Russell 2000 Value Index 11.6 11.6 21.8 18.1 12.1 7.3 11.3 18.1 -5.5 24.5 15.9 7.2

IM U.S. Small Cap Value Equity (MF) Median 12.4 12.4 21.6 16.6 12.3 8.0 11.5 16.6 -4.6 25.5 16.1 7.3 1.53

DFA US Small Cap Value I Rank 12 12 8 10 16 40 8 8 84 8 5 18

Conestoga Small Cap 628,373 1.6 13.9 13.9 15.5 15.1 17.0 10.8 11.9 11.0 4.6 24.0 18.6 8.9 1.10Russell 2000 Growth Index 13.2 13.2 19.2 14.5 14.7 9.0 11.6 14.6 -2.9 29.1 18.3 7.4

IM U.S. Small Cap Growth Equity (MF) Median 12.4 12.4 17.7 11.7 14.1 8.2 10.5 13.0 -3.6 27.5 17.9 6.3 1.55

Conestoga Small Cap Rank 19 19 64 18 13 15 22 67 5 75 38 10

40



Fund &Cat Avg

ExpRatio

Allocation

MarketValue

($)%

Performance(%)


YTD1

Year3

Years5

Years10

Years 2012 2011 2010

Feb-2010To

Mar-2013

Jan-2004To

Mar-2013

International EquityAmerican Funds EuroPacific Gr F-2 3,112,938 7.8 2.9 2.9 16.6 9.5 5.0 N/A N/A 19.5 -13.4 9.7 6.9 N/A 0.58MSCI EAFE Index 5.2 5.2 20.0 11.8 5.5 -0.4 10.2 17.9 -11.7 8.2 7.0 6.2

IM International Large Cap Core Equity (MF) Median 3.8 3.8 18.3 9.9 4.6 -1.0 9.4 18.3 -12.4 7.5 6.4 5.5 1.36

American Funds EuroPacific Gr F-2 Rank 82 82 79 59 33 N/A N/A 28 71 24 25 N/A

Emerging MarketsAberdeen Emerging Markets Instl Fd Instl 2,320,881 5.8 0.0 0.0 14.6 9.6 10.7 10.2 N/A 26.2 -11.0 27.6 14.1 N/A 1.10MSCI Emerging Markets Index -1.6 -1.6 12.1 2.3 3.6 1.4 17.4 18.6 -18.2 19.2 6.1 12.6

IM Emerging Markets Equity (MF) Median -0.6 -0.6 12.0 2.8 3.1 0.5 15.9 18.7 -19.6 18.3 5.9 11.0 1.63

Aberdeen Emerging Markets Instl Fd Instl Rank 41 41 27 14 3 1 N/A 8 4 7 3 N/A

Real Estate DomesticNuveen Real Estate Secs I 2,799,536 7.1 6.8 6.8 9.8 14.1 17.1 8.3 13.9 18.3 7.9 30.6 21.9 11.5 1.04FTSE NAREIT Equity REIT Index 8.2 8.2 11.2 15.3 17.2 6.8 12.4 18.1 8.3 27.9 21.8 9.8

IM Real Estate Sector (MF) Median 6.6 6.6 9.0 12.8 16.0 6.0 11.7 16.8 7.9 27.5 20.6 9.2 1.41

Nuveen Real Estate Secs I Rank 41 41 36 31 15 9 1 23 50 13 14 5

CommoditiesPIMCO Commodity Real Ret Strat Instl 3,427,746 8.6 -0.6 -0.6 5.0 1.5 7.5 -3.6 7.2 5.3 -7.6 24.1 7.9 5.2 0.74Dow Jones-UBS Commodity Index -1.1 -1.1 1.6 -3.0 1.4 -7.1 3.7 -1.1 -13.3 16.8 2.1 1.9

MLPKayne Anderson MLP Invst Co 1,007,372 2.5 17.8 17.8 19.0 19.5 16.7 12.4 N/A 5.8 3.0 35.4 20.9 N/A 2.40Alerian MLP Index 19.7 19.7 25.9 23.1 21.5 18.5 17.5 4.8 13.9 35.9 23.1 15.5

ALPS Alerian MLP ETF 12.7 12.7 16.2 13.3 N/A N/A N/A 2.2 10.1 N/A N/A N/A

Tortoise Energy Infrastructure Corp. 1,112,384 2.8 31.9 31.9 28.9 26.5 23.1 18.4 N/A 0.2 10.8 31.5 24.2 N/A 1.60Alerian MLP Index 19.7 19.7 25.9 23.1 21.5 18.5 17.5 4.8 13.9 35.9 23.1 15.5

ALPS Alerian MLP ETF 12.7 12.7 16.2 13.3 N/A N/A N/A 2.2 10.1 N/A N/A N/A

41



Fund &Cat Avg

ExpRatio

Allocation

MarketValue

($)%

Performance(%)


YTD1

Year3

Years5

Years10

Years 2012 2011 2010

Feb-2010To

Mar-2013

Jan-2004To

Mar-2013

Hedge FundsGrosvenor Inst'l Partners, L.P. 4,102,461 10.3 4.6 4.6 10.0 8.7 4.3 1.6 4.7 8.4 -3.8 6.7 4.7 4.1 1.25HFRI Fund of Funds Composite Index 3.5 3.5 7.4 4.9 2.1 -0.2 3.9 4.8 -5.7 5.7 2.6 3.1

Magnitude International 3,990,775 10.1 2.0 2.0 6.6 6.8 6.5 4.4 7.4 7.6 4.7 6.7 6.6 6.9 1.00HFRI Fund of Funds Composite Index 3.5 3.5 7.4 4.9 2.1 -0.2 3.9 4.8 -5.7 5.7 2.6 3.1

Cash/EquivalentsCash & Equivalents 2,277 0.0

42

FUND INFO

HISTORICAL PERFORMANCE

FUND OBJECTIVE

QUARTERLY COMMENTS - FUND

The fund seeks to provide inflation protection and income consistent with investment in inflation-indexed securities. It primarily invests in inflation-indexed bonds issued by the U.S. government. It may invest in bonds of any maturity, though the fund typically maintains a dollar-weightedmaturity of seven to 10 years. Up to 20% of the assets may be invested in non-inflation-indexed securities, including investment grade corporatedebt and U.S. government and agency bonds. At a minimum, all bonds purchased will be rated “investment grade.”

Product Name : Vanguard Infl-Prot;Adm (VAIPX)

Fund Family : Vanguard Group Inc

Ticker : VAIPX

Peer Group : IM U.S. TIPS (MF)

Benchmark : Barclays Cap US Treasury: US TIPS

Fund Inception : 06/10/2005

Portfolio Manager : Gemma Wright-Casparius

Total Assets : $15,687 Million

Total Assets Date : 02/28/2013

Gross Expense : 0.11%

Net Expense : 0.11%

Turnover : 28%

The Barclays U.S. Treasury Inflation Protected Index returned 0.69%.The Inflation-Protected Securities Fund closely tracked the TIPS index andthe average return of its peers. The fund invests almost exclusively in TIPS, but its holdings may slightly vary from the index, and its performancecan vary from that of competing funds, which may hold other types of securities.During the quarter, 10-year break-even rates widened from 2.43% to 2.51% as inflationary concerns increased following the Federal Reserve'sannouncement of a third round of QE.

J. Rondini, Senior Investment Analyst, DiMeo Schneider & Associates, L.L.C. 4Q12


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Vanguard Infl-Protected Secs Adm -0.30 -0.30 5.78 8.52 5.62 N/A 6.90 13.29 6.31 10.96 -2.78 11.69 0.52 N/A N/A N/ABarclays Cap US Treasury: US TIPS -0.36 -0.36 5.68 8.57 5.89 6.32 6.98 13.56 6.31 11.41 -2.35 11.63 0.49 2.84 8.46 8.39

IM U.S. TIPS (MF) Median -0.42 -0.42 4.96 7.75 5.16 5.77 6.41 11.93 5.87 10.26 -2.56 10.62 -0.05 2.06 7.58 7.61

Vanguard Infl-Protected Secs Adm Rank 41 41 17 12 27 N/A 25 12 29 32 56 7 17 N/A N/A N/A

Vanguard Infl-Protected Secs Adm

March 31, 2013

43

PEER GROUP ANALYSIS 3 YEAR ROLLING PEER GROUP PERCENTILE RANKING

RELATIVE PERFORMANCE TO INDEXRISK AND RETURN (04/01/08-03/31/13)

CurrentQuarter

1Year

3Years

5Years

Vanguard Infl-Protected Secs Adm -0.3 (41) 5.8 (17) 8.5 (12) 5.6 (27)

Barclays Cap US Treasury: US TIPS -0.4 (45) 5.7 (19) 8.6 (11) 5.9 (14)

5th Percentile 0.5 7.1 8.8 6.4

1st Quartile 0.1 5.5 8.2 5.6

Median -0.4 5.0 7.7 5.2

3rd Quartile -0.6 4.1 6.8 4.2

95th Percentile -1.2 1.7 4.5 2.1


March 31, 2013

44

PORTFOLIO CHARACTERISTICSRISK CHARACTERISTICS

SECTOR EXPOSURE (%)CREDIT QUALITY DISTRIBUTION (%)

1Year

3Years

5Years

10Years

Return 5.78 8.52 5.62 N/A

Standard Deviation 3.20 4.27 7.15 N/A

vs. Barclays Cap US Treasury: US TIPS

Tracking Error 0.28 0.42 0.65 N/A

Alpha 0.18 -0.02 -0.26 N/A

Beta 0.98 1.00 1.00 N/A

R-Squared 0.99 0.99 0.99 N/A

Consistency 41.67 50.00 45.00 N/A

vs. 90 Day U.S. Treasury Bill

Sharpe Ratio 1.75 1.92 0.75 N/A

Portfolio BenchmarkEffective Duration 8.4 5.6

Avg. Maturity 9.3 8.9

Yield To Worst 3.8


March 31, 2013

45

FUND INFO


FUND OBJECTIVE


This fund is managed to take full advantage of the 35% limit on below investment-grade bonds, which tends to generate a higher risk/rewardprofile. In addition, management is willing to take on added interest rate risk through obtaining longer-duration bonds in order to gain higher yields.To ease some of this interest rate risk, the fund is structured with counter cyclical elements. In doing so, it will utilize convertible bonds, municipalbonds, preferred stocks and foreign corporate and government bonds, in addition to the domestic corporate bonds which make up the majority of

the fund.

Product Name : Loomis Sayles:Bond;Inst (LSBDX)

Fund Family : Loomis Sayles & Company LP

Ticker : LSBDX

Peer Group : IM U.S. Broad Market Core Fixed Income (MF)

Benchmark : Barclays Aggregate


Portfolio Manager : Fuss/Stokes/Eagan




Net Expense : 0.63%

Turnover : 20%A large overweight to corporates and an underweight to treasuries added to results for the 4th quarter.A large underweight to mortgages also added to results as they lagged government and corporate bonds for the quarter.Management’s overweight to the lower quality sectors of the investment grade market once added to results as they outperformed their higher quality counterparts.

M. O'Neill, Analyst, DiMeo Schneider & Associates, L.L.C. 4Q12


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Loomis Sayles Bond Instl 2.27 2.27 10.46 9.74 8.66 9.70 15.13 3.76 13.58 37.19 -21.82 8.53 11.29 4.28 11.30 29.18Barclays Aggregate -0.12 -0.12 3.77 5.52 5.47 5.03 4.21 7.84 6.54 5.93 5.24 6.97 4.34 2.43 4.34 4.11

IM U.S. Broad Market Core Fixed Income (MF) Median 0.16 0.16 5.37 6.10 5.94 4.84 6.75 6.57 7.50 13.33 -3.69 5.24 3.94 1.82 4.02 4.36

Loomis Sayles Bond Instl Rank 1 1 2 1 3 1 1 93 1 1 97 2 1 2 1 1

Loomis Sayles Bond Instl

March 31, 2013

46



CurrentQuarter

1Year

3Years

5Years

Loomis Sayles Bond Instl 2.3 (1) 10.5 (2) 9.7 (1) 8.7 (3)

Barclays Aggregate -0.1 (81) 3.8 (83) 5.5 (72) 5.5 (65)


1st Quartile 0.4 6.5 6.8 6.7

Median 0.2 5.4 6.1 5.9

3rd Quartile -0.1 4.3 5.4 5.1

95th Percentile -0.3 2.8 4.3 3.2


March 31, 2013

47



1Year

3Years

5Years

10Years

Return 10.46 9.74 8.66 9.70

Standard Deviation 4.29 6.94 12.19 9.56

vs. Barclays Aggregate

Tracking Error 5.43 7.46 11.06 8.46

Alpha 14.83 10.95 0.67 3.40

Beta -1.02 -0.16 1.57 1.29

R-Squared 0.21 0.00 0.20 0.23

Consistency 66.67 58.33 61.67 65.00


Sharpe Ratio 2.33 1.37 0.71 0.84



Yield To Worst 5.7 1.9


March 31, 2013

48

FUND INFO


FUND OBJECTIVE


PIMCO seeks current income consistent with preservation of capital. The process begins with a top-down review of the global economy andinterest rates. Management looks at the most likely near term scenario with regard to interest rate volatility, yield curve shape, and credit trends.

Once the larger trends are established, they focus on selecting high-quality fixed income securities through the use of proprietary research.

Product Name : PIMCO:Tot Rtn;Inst (PTTRX)

Fund Family : PIMCO

Ticker : PTTRX

Peer Group : IM U.S. Broad Market Core Fixed Income (MF)

Benchmark : Barclays Aggregate


Portfolio Manager : William H. Gross




Net Expense : 0.46%

Turnover : 584%

The fund outperformed in the fourth quarter as a result of improved market sentiment from further quantitative easing programs announced bythe Federal Reserve and the European Central Bank.The fund remains underweight to government-related securities, and is positioned with an overweight to TIPS (especially long-term maturities),an underweight to nominal treasuries, and an overweight to the “belly of the curve” (5-10 year maturities).The fund is positioned with an underweight position to investment grade credit, but remains overweight to financial corporates due to spreadsremaining attractive despite recent outperformance in the sector.Although the fund remains underweight to credit as a whole, PIMCO views the fund’s tactical positions in municipal bonds and “Build America Bonds” as more attractive substitutes to credit that are trading at more attractive yield spreads above treasuries than are other traditionalinvestment grade credits.The fund’s overweight to mortgages was reduced during the quarter as a result of recent outperformance in the sector as a result of theannouncement of QE3.The fund’s foreign holdings are positioned in Canadian, Italian and Spanish issues, with the latter two being viewed as attractive mainly due tothe ECB’s continued support for troubled euro-denominated sovereign bonds.

A.Novara, Research Analyst, DiMeo Schneider & Associates, L.L.C. 4Q12


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

PIMCO Total Return Instl 0.61 0.61 7.93 6.92 7.78 6.67 10.35 4.16 8.86 13.87 4.82 9.08 3.99 2.88 5.14 5.57Barclays Aggregate -0.12 -0.12 3.77 5.52 5.47 5.03 4.21 7.84 6.54 5.93 5.24 6.97 4.34 2.43 4.34 4.11

IM U.S. Broad Market Core Fixed Income (MF) Median 0.16 0.16 5.37 6.10 5.94 4.84 6.75 6.57 7.50 13.33 -3.69 5.24 3.94 1.82 4.02 4.36

PIMCO Total Return Instl Rank 11 11 9 22 7 4 6 91 25 47 13 1 47 4 13 28

PIMCO Total Return Instl

March 31, 2013

49



CurrentQuarter

1Year

3Years

5Years

PIMCO Total Return Instl 0.6 (11) 7.9 (9) 6.9 (22) 7.8 (7)

Barclays Aggregate -0.1 (81) 3.8 (83) 5.5 (72) 5.5 (65)


1st Quartile 0.4 6.5 6.8 6.7

Median 0.2 5.4 6.1 5.9

3rd Quartile -0.1 4.3 5.4 5.1

95th Percentile -0.3 2.8 4.3 3.2


March 31, 2013

50



1Year

3Years

5Years

10Years

Return 7.93 6.92 7.78 6.67


vs. Barclays Aggregate

Tracking Error 0.70 2.67 2.75 2.12

Alpha 4.49 2.69 3.00 1.74

Beta 0.88 0.76 0.86 0.97

R-Squared 0.87 0.32 0.55 0.72

Consistency 91.67 75.00 75.00 69.17


Sharpe Ratio 4.21 2.10 1.76 1.19





March 31, 2013

51

FUND INFO


FUND OBJECTIVE


The fund utilizes a bottom-up, fundamental, value-oriented approach to analyze the issuer's business prospectus, management, capitalrequirements, capital structure, enterprise value, and security structure and covenants. Credit analysts focusing solely on high yield havesignificant influence on buy/sell decisions, industry weighting, and risk profile within an industry. The analysts keep a performance rating on eachindustry they follow, which determines relative weightings in the portfolio. Relative positions within each industry in terms of credit quality alsoresult from analyst ratings. Management may shift from weaker to stronger credits and from cyclical to non-cyclical sectors if they believe the

economic environment will weaken and vice versa if they believe the economy will strengthen.

Product Name : JPMorgan:High Yield;Sel (OHYFX)

Fund Family : JPMorgan Funds

Ticker : OHYFX

Peer Group : IM U.S. High Yield Bonds (MF)

Benchmark : Barclays US Corp: High Yield


Portfolio Manager : Morgan/Shanahan/Gibson




Net Expense : 0.86%

Turnover : 41%

During the fourth quarter of 2012, security selection in the basic materials and information technology sectors detracted from performanceresults. At the industry level, an underweight position in basic materials, along with an overweight position in transportation, also provednegative.On the positive side, security selection in the capital goods, consumer cyclicals, consumer non-cyclicals and finance sectors contributed toreturns. Industry over/underweights were neutral for returns in the quarter.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

JPMorgan High Yield Select 2.89 2.89 12.20 9.99 10.58 9.67 14.81 2.65 14.67 48.45 -22.54 2.18 12.80 3.04 11.31 26.10Barclays US Corp: High Yield 2.89 2.89 13.13 11.24 11.65 10.13 15.81 4.98 15.12 58.21 -26.16 1.87 11.86 2.74 11.14 28.96

IM U.S. High Yield Bonds (MF) Median 2.63 2.63 11.88 10.04 9.44 8.55 14.72 3.31 14.04 47.42 -24.98 1.85 9.98 2.58 9.87 24.75

JPMorgan High Yield Select Rank 38 38 43 53 19 13 48 63 36 46 30 41 6 34 19 38

JPMorgan High Yield Select

March 31, 2013

52



CurrentQuarter

1Year

3Years

5Years

JPMorgan High Yield Select 2.9 (38) 12.2 (43) 10.0 (53) 10.6 (19)

Barclays US Corp: High Yield 2.9 (38) 13.1 (23) 11.2 (12) 11.6 (5)

5th Percentile 4.2 15.1 11.7 11.6

1st Quartile 3.2 13.0 10.6 10.4

Median 2.6 11.9 10.0 9.4

3rd Quartile 2.2 10.8 9.4 8.6

95th Percentile 1.4 7.9 8.1 6.8


March 31, 2013

53



1Year

3Years

5Years

10Years

Return 12.20 9.99 10.58 9.67


vs. Barclays US Corp: High Yield

Tracking Error 0.36 0.87 3.57 2.65

Alpha -0.90 -1.10 1.17 1.34

Beta 1.01 1.00 0.79 0.81

R-Squared 0.98 0.98 0.96 0.96

Consistency 16.67 33.33 38.33 45.83


Sharpe Ratio 3.95 1.39 0.92 0.90





March 31, 2013

54

FUND INFO


FUND OBJECTIVE


The fund takes an all-encompassing approach toward international fixed-income investing. Top-down work begins with a 3-5 year outlook for theglobal economy and interest rates followed by using a country-bond allocation model to help determine which countries have the best risk adjusted

yield. The bottom-up strategy focuses on credit research, stressing fundamental and in depth analysis of all potential holdings.

Product Name : PIMCO:For Bd (DH);Inst (PFORX)

Fund Family : PIMCO

Ticker : PFORX

Peer Group : IM International Fixed Income (MF)

Benchmark : Barclays Global Aggregate Ex USD (Hedged)


Portfolio Manager : Scott A. Mather




Net Expense : 0.50%

Turnover : 355%Sector strategies drove the fund’s outperformance during the fourth quarter, with the portfolio’s overweights to non-agency MBS, ABS and creditdriving performance.Interest rate strategies and currency strategies were both flat to the benchmark during the quarter.The portfolio remains duration underweight overall (5.8 years vs. 7.6 years), mainly driven by a shorter duration in Japanese bonds as a result of the Japanese Central Bank continuing to print yen to combat deflation.The fund remains duration underweight to government bonds.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

PIMCO Foreign Bond (USD-Hedged) I 1.54 1.54 10.41 8.23 8.31 6.47 11.19 6.77 9.19 19.04 -2.36 3.98 2.94 5.72 6.65 3.57Barclays Global Aggregate Ex USD (Hedged) 1.06 1.06 5.77 4.36 4.64 4.40 6.46 3.94 3.28 4.43 5.75 4.27 3.19 5.42 5.26 2.42

IM International Fixed Income (MF) Median -2.67 -2.67 2.17 4.54 3.68 5.32 6.68 2.98 6.44 9.00 2.24 9.29 5.47 -8.08 10.81 17.63

PIMCO Foreign Bond (USD-Hedged) I Rank 2 2 2 3 6 25 17 7 24 11 81 83 82 4 80 85

PIMCO Foreign Bond (USD-Hedged) I

March 31, 2013

55



CurrentQuarter

1Year

3Years

5Years

PIMCO Foreign Bond (USD-Hedged) I 1.5 (2) 10.4 (2) 8.2 (3) 8.3 (6)

Barclays Global Aggregate Ex USD (Hedged) 1.1 (14) 5.8 (34) 4.4 (53) 4.6 (37)

5th Percentile 1.4 10.0 7.9 8.3

1st Quartile 0.3 7.3 6.4 6.2

Median -2.7 2.2 4.5 3.7

3rd Quartile -3.6 -0.7 2.9 1.6

95th Percentile -4.5 -3.4 1.3 0.5


March 31, 2013

56



1Year

3Years

5Years

10Years

Return 10.41 8.23 8.31 6.47


vs. Barclays Global Aggregate Ex USD (Hedged)

Tracking Error 1.71 1.94 3.91 2.93

Alpha 6.10 3.57 3.54 2.10

Beta 0.71 1.04 1.01 0.99

R-Squared 0.38 0.63 0.31 0.40

Consistency 75.00 72.22 70.00 62.50


Sharpe Ratio 4.80 2.48 1.62 1.19





March 31, 2013

57

FUND INFO


FUND OBJECTIVE


The fund takes a conservative approach toward emerging market fixed-income investing. Top-down work begins with a 3-5 year outlook for theglobal economy and interest rates followed by using a country-bond allocation model to help determine which countries have the best risk adjustedyield. Country selection also takes into account fiscal and reserve positions, relationship to external trends, and the potential for adverse technical

conditions. The bottom-up strategy focuses on credit research, stressing fundamental and in depth relative value analysis of all potential holdings.

Product Name : PIMCO:Em Local Bd;Inst (PELBX)

Fund Family : PIMCO

Ticker : PELBX

Peer Group : IM Emerging Markets Debt (MF)

Benchmark : JPM GBI-EM Global Diversified


Portfolio Manager : Michael Gomez




Net Expense : 0.90%

Turnover : 22%

The fund underperformed modestly during the quarter resulting from its overweight to Mexico and underweights to such strong performers asTurkey and Hungary.The fund remains overweight to local duration as yields are expected to decline as EM inflation concerns abate.Selective overweights to the Brazilian Real and Russian Ruble are the result of the Brazilian central bank’s desire to keep rates low and positivecurrent account dynamics in Russia.EM corporates and quasi-sovereigns continue to remain attractive in Brazil, Mexico, Russia, and South Korea for yield pickup when compared totheir sovereign counterparts.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

PIMCO Emerging Local Bd Fd Inst -0.16 -0.16 6.93 7.79 8.38 N/A 15.81 -0.78 15.55 29.27 -10.66 12.29 N/A N/A N/A N/AJPM GBI-EM Global Diversified -0.13 -0.13 7.67 7.92 8.43 11.93 16.76 -1.75 15.68 21.98 -5.22 18.11 15.22 6.27 22.97 16.92

IM Emerging Markets Debt (MF) Median -1.04 -1.04 10.74 9.93 9.53 10.39 18.71 5.45 12.66 35.14 -18.37 4.82 11.02 11.40 12.61 30.39

PIMCO Emerging Local Bd Fd Inst Rank 30 30 95 90 78 N/A 86 85 13 84 6 1 N/A N/A N/A N/A

PIMCO Emerging Local Bd Fd Inst

March 31, 2013

58



CurrentQuarter

1Year

3Years

5Years

PIMCO Emerging Local Bd Fd Inst -0.2 (30) 6.9 (95) 7.8 (90) 8.4 (78)

JPM GBI-EM Global Diversified -0.1 (29) 7.7 (92) 7.9 (90) 8.4 (78)

5th Percentile 1.9 15.9 11.8 12.1

1st Quartile 0.1 11.7 10.6 10.1

Median -1.0 10.7 9.9 9.5

3rd Quartile -1.6 9.6 9.3 8.6

95th Percentile -2.3 6.7 6.1 4.9


March 31, 2013

59



1Year

3Years

5Years

10Years

Return 6.93 7.79 8.38 N/A


vs. JPM GBI-EM Global Diversified


Alpha -0.02 0.22 -0.27 N/A

Beta 0.90 0.95 1.04 N/A

R-Squared 0.99 0.99 0.98 N/A

Consistency 33.33 36.11 40.00 N/A







March 31, 2013

60

FUND INFO


FUND OBJECTIVE


The portfolio is built based on Dodge & Cox's fundamental research effort, a three-to-five year time horizon, and a strong price discipline. It investsin companies that appear to be temporarily undervalued by the stock market but have a favorable outlook for long-term growth, while focusing onthe underlying financial condition and prospects of individual companies, including future earnings, cash flow, and dividends. Other factors,including financial strength, economic condition, competitive advantage, and quality of the business franchise are weighed against valuation in

selecting individual securities. By prospectus, the fund can invest up to 20% of its assets in U.S. dollar-denominated foreign securities.

Product Name : Dodge & Cox Stock (DODGX)

Fund Family : Dodge & Cox

Ticker : DODGX

Peer Group : IM U.S. Large Cap Value Equity (MF)

Benchmark : Russell 1000 Value Index


Portfolio Manager : Team Managed




Net Expense : 0.52%

Turnover : 16%

Positioning within information technology contributed positively during the fourth quarter. Finland-based Nokia surged 53% amid favorable newsfor its new Lumina smartphone and optimism over the company’s expansion plans in China.Within financials, higher quality lending-oriented banks which are beneficiaries of stable-to-slightly rising U.S. housing prices, aided results.Performing particularly well was Bank of America, which rallied 32% during the quarter.Elsewhere, the fund’s positioning within the consumer discretionary space aided results. Notable contributors were media-related holdings.Comcast advanced 5% after posting better-than-expected subscriber growth and higher average revenue per user. Time Warner alsocontributed positively, rising 6%.On the negative side, holdings within the energy and industrial-related sectors detracted. Conglomerate General Electric fell 7% after earningsmissed expectations.GE reported that order growth had slowed as businesses remained cautious.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Dodge & Cox Stock 11.74 11.74 20.35 11.64 4.63 9.09 22.01 -4.08 13.49 31.27 -43.31 0.14 18.53 9.37 19.17 32.34Russell 1000 Value Index 12.31 12.31 18.77 12.74 4.85 9.18 17.51 0.39 15.51 19.69 -36.85 -0.17 22.25 7.05 16.49 30.03

IM U.S. Large Cap Value Equity (MF) Median 11.27 11.27 15.25 10.55 4.17 8.24 15.63 -2.15 12.86 24.10 -36.91 1.57 17.98 5.06 12.94 28.50

Dodge & Cox Stock Rank 29 29 1 27 41 23 1 72 41 15 91 61 44 13 3 20

Dodge & Cox Stock

March 31, 2013

61



CurrentQuarter

1Year

3Years

5Years

Dodge & Cox Stock 11.7 (29) 20.3 (1) 11.6 (27) 4.6 (41)

Russell 1000 Value Index 12.3 (14) 18.8 (5) 12.7 (6) 4.8 (35)

5th Percentile 12.7 18.6 13.0 6.6

1st Quartile 11.9 16.5 11.7 5.3

Median 11.3 15.2 10.5 4.2

3rd Quartile 10.6 13.8 9.2 2.9

95th Percentile 9.6 10.9 7.3 1.4

Dodge & Cox Stock

March 31, 2013

62

RISK CHARACTERISTICS PORTFOLIO CHARACTERISTICS

SECTOR EXPOSURE (%) TOP 10 HOLDINGS

Portfolio BenchmarkTotal Securities 80 696

Price/Earnings (P/E) 16.5 13.6

Price/Book (P/B) 2.7 1.8

Dividend Yield 2.6 2.6

1Year

3Years

5Years

10Years

Return 20.35 11.64 4.63 9.09


vs. Russell 1000 Value Index

Tracking Error 2.21 3.19 4.69 4.11

Alpha -0.09 -2.17 -0.37 -0.56

Beta 1.09 1.12 1.10 1.08

R-Squared 0.97 0.98 0.96 0.95

Consistency 50.00 38.89 50.00 47.50


Sharpe Ratio 1.64 0.72 0.30 0.49

As of 12/31/2012Capital One Financial Corp ORD 4.3 %

Comcast Corp ORD 3.9 %

Wells Fargo & Co ORD 3.8 %

Sanofi SA DR 3.3 %

Merck & Co Inc ORD 3.1 %

Novartis AG DR 3.0 %

Time Warner Inc ORD 3.0 %

General Electric Co ORD 2.9 %

GlaxoSmithKline PLC DR 2.8 %

Pfizer Inc ORD 2.7 %

Dodge & Cox Stock

March 31, 2013

63

FUND INFO


FUND OBJECTIVE


This exchange traded fund (ETF) seeks performance corresponding to the price and yield performance, before fees and expenses, of the large capportion of the U.S. equity market, as represented by the S&P 500 Index. Each stock in the Index is held on a market capitalization weighted basiswhere the size of the position in the stock is based on the size of the stock as measured by the stock price times the number of shares outstanding.

The fund attempts to replicate this index by holding all or substantially all of the stocks in the S&P 500.

Product Name : iShares:Core S&P 500 (IVV)

Fund Family : BlackRock Fund Advisors

Ticker :

Peer Group : IM U.S. Large Cap Core Equity (MF)

Benchmark : S&P 500






Net Expense : 0.07%

Turnover : 5%

Due to the passive nature of this product, commentary not provided.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

iShares Core S&P 500 ETF 10.59 10.59 13.89 12.58 5.76 8.46 15.91 2.03 14.96 26.43 -36.95 5.44 15.69 4.83 10.77 28.53S&P 500 10.61 10.61 13.96 12.67 5.81 8.53 16.00 2.11 15.06 26.46 -37.00 5.49 15.79 4.91 10.88 28.68

IM U.S. Large Cap Core Equity (MF) Median 10.40 10.40 12.97 10.91 4.92 7.95 15.41 -0.56 12.98 26.36 -36.91 5.82 14.36 5.16 9.69 26.00

iShares Core S&P 500 ETF Rank 41 41 32 15 27 33 42 23 20 50 51 55 33 55 39 30

iShares Core S&P 500 ETF

March 31, 2013

64



CurrentQuarter

1Year

3Years

5Years

iShares Core S&P 500 ETF 10.6 (41) 13.9 (32) 12.6 (15) 5.8 (27)

5th Percentile 12.4 17.8 13.5 7.4

1st Quartile 11.1 14.3 12.1 5.8

Median 10.4 13.0 10.9 4.9

3rd Quartile 9.4 11.4 9.3 3.7

95th Percentile 7.8 8.0 7.6 1.6


March 31, 2013

65


SECTOR EXPOSURE (%)

Portfolio

TOP 10 HOLDINGS

1Year

3Years

5Years

10Years

Return 13.89 12.58 5.76 8.46


vs. S&P 500

Tracking Error 0.01 0.03 0.04 0.04

Alpha -0.05 -0.06 -0.04 -0.05

Beta 1.00 1.00 1.00 1.00

R-Squared 1.00 1.00 1.00 1.00

Consistency 8.33 13.89 25.00 19.17


Sharpe Ratio 1.36 0.87 0.38 0.51

Total Securities 504

Avg. Market Cap 102.99 ($B)

P/E 20.13

P/B 3.81

Div. Yield 2.52%

Annual EPS 9.53

5Yr EPS 7.01

3Yr EPS Growth 17.84

As of 02/28/2013Apple Inc ORD 3.1 %

Exxon Mobil Corp ORD 3.0 %

General Electric Co ORD 1.8 %

Chevron Corp ORD 1.7 %

International Business Machines Corp ORD 1.6 %

Google Inc ORD 1.6 %

Johnson & Johnson ORD 1.6 %

Microsoft Corp ORD 1.6 %

Procter & Gamble Co ORD 1.5 %

AT&T Inc ORD 1.5 %


March 31, 2013

66

FUND INFO


FUND OBJECTIVE


This exchange traded fund (ETF) seeks performance corresponding to the price and yield performance, before fees and expenses, of the large capgrowth portion of the U.S. equity market, as represented by the Russell 1000 Growth Index. The Russell 1000 Growth Index is comprised of thestocks within the Russell 1000 Index with higher price-to-book values and higher forecasted growth values. The Russell 1000 Index measures the

performance of the 1,000 largest companies in the Russell 3000 Index.

Product Name : iShares:Russ 1000 Gr Idx (IWF)

Fund Family : BlackRock Fund Advisors

Ticker :

Peer Group : IM U.S. Large Cap Growth Equity (MF)

Benchmark : Russell 1000 Growth Index






Net Expense : 0.20%

Turnover : 19%

Due to the passive nature of this product, commentary not provided.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

iShares Russell 1000 Growth Index 9.49 9.49 9.89 12.85 7.12 8.43 15.03 2.47 16.47 36.94 -38.48 11.63 8.86 5.08 6.09 29.46Russell 1000 Growth Index 9.54 9.54 10.09 13.06 7.30 8.62 15.26 2.64 16.71 37.21 -38.44 11.81 9.07 5.26 6.30 29.75

IM U.S. Large Cap Growth Equity (MF) Median 8.56 8.56 7.48 10.54 5.36 7.67 14.90 -1.79 15.15 34.71 -39.67 13.77 6.57 5.66 7.35 26.91

iShares Russell 1000 Growth Index Rank 17 17 24 13 17 30 48 12 35 39 40 68 25 57 67 32

iShares Russell 1000 Growth Index

March 31, 2013

67



CurrentQuarter

1Year

3Years

5Years

iShares Russell 1000 Growth Index 9.5 (17) 9.9 (24) 12.9 (13) 7.1 (17)

5th Percentile 11.1 13.6 13.8 9.0

1st Quartile 9.2 9.8 11.8 6.6

Median 8.6 7.5 10.5 5.4

3rd Quartile 7.5 4.7 9.4 3.9

95th Percentile 5.9 2.0 6.9 2.1


March 31, 2013

68


SECTOR EXPOSURE (%)

Portfolio

TOP 10 HOLDINGS

1Year

3Years

5Years

10Years

Return 9.89 12.85 7.12 8.43


vs. Russell 1000 Growth Index

Tracking Error 0.03 0.04 0.04 0.04

Alpha -0.16 -0.17 -0.16 -0.17

Beta 1.00 1.00 1.00 1.00

R-Squared 1.00 1.00 1.00 1.00

Consistency 8.33 8.33 11.67 6.67


Sharpe Ratio 1.00 0.87 0.44 0.50

Total Securities 575

Avg. Market Cap 92.59 ($B)

P/E 22.78

P/B 5.62

Div. Yield 2.30%

Annual EPS 10.08

5Yr EPS 14.47

3Yr EPS Growth 20.34

As of 02/28/2013Apple Inc ORD 5.6 %

International Business Machines Corp ORD 3.0 %

Microsoft Corp ORD 2.8 %

Google Inc ORD 2.8 %

The Coca-Cola Co ORD 2.0 %

Philip Morris International Inc ORD 1.9 %

Verizon Communications Inc ORD 1.8 %

Oracle Corp ORD 1.8 %

PepsiCo Inc ORD 1.6 %

Qualcomm Inc ORD 1.5 %


March 31, 2013

69

FUND INFO


FUND OBJECTIVE


The process selects stocks from the bottom deciles of NYSE issues, but include only the “value” subset. Stocks are ranked by book-to-marketratio, and stocks falling in the top three deciles (30%) are purchased for the fund. Book value is reconstructed for each eligible issue based onmanagement’s interpretation of how accounting charges affect “real” book value. This product will not own REITs, ADRs or foreign stocks, recently

issued IPOs, companies with less than 3 years of history, or OTC companies with fewer than 4 market makers.

Product Name : DFA US Small Cap Val;I (DFSVX)

Fund Family : Dimensional Fund Advisors LP

Ticker : DFSVX

Peer Group : IM U.S. Small Cap Value Equity (MF)

Benchmark : Russell 2000 Value Index






Net Expense : 0.52%

Turnover : 15%An overweight as well as stock selection to industrials added the most to performance for the quarter.Stock selection as well as an underweight to financial lifted returns.An underweight to utilities also added helped results.Stock selection within materials and energy contributed to out performance as well.Poor stock selection within consumer discretionary and information technology weighed results.

R. Vervoort, Analyst, DiMeo Schneider & Associates, L.L.C. 4Q12


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

DFA US Small Cap Value I 13.75 13.75 22.12 14.40 8.50 13.61 21.72 -7.55 30.90 33.62 -36.79 -10.75 21.55 7.79 25.39 59.40Russell 2000 Value Index 11.63 11.63 18.09 12.12 7.29 11.29 18.05 -5.50 24.50 20.58 -28.92 -9.78 23.48 4.71 22.25 46.03

IM U.S. Small Cap Value Equity (MF) Median 12.36 12.36 16.56 12.32 7.99 11.45 16.56 -4.61 25.50 28.98 -32.03 -6.97 17.17 6.02 20.06 43.05

DFA US Small Cap Value I Rank 12 12 10 16 40 8 8 84 8 33 69 74 9 30 7 12

DFA US Small Cap Value I

March 31, 2013

70



CurrentQuarter

1Year

3Years

5Years

DFA US Small Cap Value I 13.8 (12) 22.1 (10) 14.4 (16) 8.5 (40)

Russell 2000 Value Index 11.6 (63) 18.1 (29) 12.1 (54) 7.3 (62)

5th Percentile 15.7 24.3 15.8 11.6

1st Quartile 13.1 18.3 13.6 9.1

Median 12.4 16.6 12.3 8.0

3rd Quartile 10.7 13.5 10.7 6.6

95th Percentile 9.0 9.1 8.5 5.1


March 31, 2013

71



Portfolio BenchmarkTotal Securities 1,265 1,418




1Year

3Years

5Years

10Years

Return 22.12 14.40 8.50 13.61


vs. Russell 2000 Value Index

Tracking Error 2.50 3.67 4.34 4.09

Alpha 2.72 0.83 0.81 1.29

Beta 1.05 1.13 1.10 1.10

R-Squared 0.96 0.99 0.98 0.97

Consistency 58.33 58.33 56.67 60.83


Sharpe Ratio 1.68 0.72 0.43 0.61

As of 10/31/2012Dillard's Inc ORD 1.1 %

Louisiana-Pacific Corp ORD 1.1 %

CNO Financial Group Inc ORD 1.0 %

Westlake Chemical Corp ORD 1.0 %

GATX Corp ORD 0.9 %

Avis Budget Group Inc ORD 0.9 %

Convergys Corp ORD 0.9 %

LifePoint Hospitals Inc ORD 0.9 %

Esterline Technologies Corp ORD 0.9 %

Helix Energy Solutions Group Inc ORD 0.8 %


March 31, 2013

72

FUND INFO


FUND OBJECTIVE


The investment style focuses on high quality small cap companies with long term sustainable growth in the 15 – 20% range. Ideas are generatedapproximately equally across three sources – quantitative screening; regional, boutique brokers; and company contacts through industryconferences, trade shows or other research. Fundamental research is focused on strong earnings and ROE growth, a low debt to capitalization

rate, strong balance sheet, and a solid management team. The portfolio is fairly concentrated at 45 – 50 stocks with turnover around 30%.

Product Name : Conestoga Small Cap (CCASX)

Fund Family : Conestoga Capital Advisors LLC

Ticker : CCASX

Peer Group : IM U.S. Small Cap Growth Equity (MF)

Benchmark : Russell 2000 Growth Index


Portfolio Manager : Mitchell/Martindale

Total Assets : $421 Million



Net Expense : 1.10%

Turnover : 16%The fund outperformed it benchmark index for the quarter on the back of strong sector allocation mitigating modest declines from stockselection.Overweights to producer durables and technology as well as an underweight to healthcare generated strong sector allocation effects. Sector positioning continues to remain purely a residual of the bottom-up stock selection process, however.Stock selection was more mixed in the fourth quarter, detracting from relative return. Strong stock selection was experienced in the healthcareand technology sectors in particular. Within healthcare, National Research Corp and Abaxis Inc. were among the top performers, eachdelivering solid quarterly revenue and earnings results. NRCI also benefited from the declaration of a special dividend ahead of the fiscal cliff.Within technology, Stratays Ltd. was the strategy’s strongest contributor for the quarter and calendar year, with excitement building for thecompany’s 3-D printing technology and the successful closing of its merger with Objet Ltd.Stock selection was weakest in the producer durables sector, led by the weaker returns of Raven Industries Inc. and FARO Technologies Inc.Both names experienced lower-than-expected revenue and earnings growth over the quarter.Relative performance was also impacted by the absence of any airline stocks, which contributed to the Index’s strong performance during thequarter.

B. McNaul, Investment Research Associate, DiMeo Schneider & Associates, L.L.C. 4Q12


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Conestoga Small Cap 13.93 13.93 15.07 17.05 10.77 11.90 11.00 4.55 23.99 29.09 -27.68 6.43 9.18 4.39 18.81 33.68Russell 2000 Growth Index 13.21 13.21 14.52 14.75 9.04 11.61 14.59 -2.91 29.09 34.47 -38.54 7.05 13.35 4.15 14.31 48.54

IM U.S. Small Cap Growth Equity (MF) Median 12.41 12.41 11.75 14.10 8.17 10.52 12.95 -3.63 27.50 33.15 -42.50 7.47 9.64 4.91 11.41 44.33

Conestoga Small Cap Rank 19 19 18 13 15 22 67 5 75 73 1 54 55 57 9 87

Conestoga Small Cap

March 31, 2013

73



CurrentQuarter

1Year

3Years

5Years

Conestoga Small Cap 13.9 (19) 15.1 (18) 17.0 (13) 10.8 (15)

Russell 2000 Growth Index 13.2 (37) 14.5 (22) 14.7 (44) 9.0 (39)

5th Percentile 15.6 19.3 17.9 12.0

1st Quartile 13.5 14.2 16.1 10.1

Median 12.4 11.7 14.1 8.2

3rd Quartile 11.3 9.0 11.8 5.7

95th Percentile 9.0 -1.4 4.1 3.8

Conestoga Small Cap

March 31, 2013

74



Portfolio BenchmarkTotal Securities 49 1,108




1Year

3Years

5Years

10Years

Return 15.07 17.05 10.77 11.90


vs. Russell 2000 Growth Index

Tracking Error 5.06 5.91 6.54 6.45

Alpha 2.81 4.18 2.80 2.21

Beta 0.83 0.84 0.82 0.80

R-Squared 0.86 0.92 0.94 0.92

Consistency 66.67 55.56 50.00 49.17


Sharpe Ratio 1.24 0.98 0.58 0.64

As of 02/28/2013CoStar Group Inc ORD 4.0 %

Proto Labs Inc ORD 3.4 %

Tyler Technologies Inc ORD 3.3 %

Bottomline Technologies (de), Inc ORD 3.0 %

ACI Worldwide Inc ORD 3.0 %

Raven Industries Inc ORD 2.9 %

Sun Hydraulics Corp ORD 2.9 %

PROS Holdings Inc ORD 2.9 %

Abaxis Inc ORD 2.8 %

Simpson Manufacturing Co Inc ORD 2.5 %

Conestoga Small Cap

March 31, 2013

75

FUND INFO


FUND OBJECTIVE


The fund is sub-advised by Capital Research and Management Company. Using a common pool of industry analysts for research, eight portfoliocounselors construct independent portfolios using their individual styles from growth to value. The fund tends to focus on blue chip multinationalcompanies while allowing each portfolio sleeve to invest up to 25% in emerging markets. The resulting portfolio holds over 400 securities with

relatively low turnover.

Product Name : American Funds EuPc;F-2 (AEPFX)

Fund Family : American Funds

Ticker : AEPFX

Peer Group : IM International Large Cap Core Equity (MF)

Benchmark : MSCI EAFE Index






Net Expense : 0.58%

Turnover : 24%The fund’s cautious stance of the financial services sector detracted from fourth quarter results. However, strong stock selection helped mitigatelosses, with Societe Generale and Agricultural Bank of China aiding results.Within IT, Chinese internet company Baidu disappointed, while Japan’s Softbank led the telecom sector lower. Softbank made headlines when itannounced plans to buy a majority stake in U.S.-based Sprint Nextel. The stock tumbled on concerns about the company’s debt burden and itsability to achieve synergies with Sprint.Meanwhile, the funds underweight to energy, particularly some of the larger major European oil companies, was helpful, as the sector fell due toconcerns about declining use of power and energy resources amid slowing economic activity.The fund’s auto-related holdings also contributed positively. Volkswagen and BMW benefited from hopes of a growth pick-up in the U.S. andChina.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

American Funds EuroPacific Gr F-2 2.87 2.87 9.47 5.04 N/A N/A 19.54 -13.36 9.67 39.47 N/A N/A N/A N/A N/A N/AMSCI EAFE Index 5.23 5.23 11.79 5.49 -0.40 10.19 17.90 -11.73 8.21 32.46 -43.06 11.63 26.86 14.02 20.70 39.17

IM International Large Cap Core Equity (MF) Median 3.76 3.76 9.87 4.64 -1.02 9.36 18.29 -12.40 7.47 29.79 -42.71 11.15 25.35 13.40 17.53 33.09

American Funds EuroPacific Gr F-2 Rank 82 82 59 33 N/A N/A 28 71 24 13 N/A N/A N/A N/A N/A N/A

American Funds EuroPacific Gr F-2

March 31, 2013

76



CurrentQuarter

1Year

3Years

5Years

American Funds EuroPacific Gr F-2 2.9 (82) 9.5 (59) 5.0 (33) N/A

MSCI EAFE Index 5.2 (5) 11.8 (6) 5.5 (19) -0.4 (30)

5th Percentile 5.1 11.8 7.0 1.3

1st Quartile 4.2 11.0 5.2 -0.3

Median 3.8 9.9 4.6 -1.0

3rd Quartile 3.2 8.4 3.9 -1.9

95th Percentile 1.7 6.3 1.8 -3.2


March 31, 2013

77


SECTOR EXPOSURE (%)REGION WEIGHTS (%)





1Year

3Years

5Years

10Years

Return 9.47 5.04 N/A N/A

Standard Deviation 13.19 18.09 N/A N/A

vs. MSCI EAFE Index

Tracking Error 3.58 3.75 N/A N/A

Alpha -0.50 -0.12 N/A N/A

Beta 0.85 0.93 N/A N/A

R-Squared 0.96 0.96 N/A N/A

Consistency 41.67 50.00 N/A N/A


Sharpe Ratio 0.75 0.36 N/A N/A


March 31, 2013

78

FUND INFO


FUND OBJECTIVE


The fund seeks to invest in high quality companies when they are trading at a discounted price. High quality companies are defined as those withrecurring revenue growth, a quality management team, a “core” business, and strong balance sheet. Fundamental research is conducted byAberdeen's global team to understand the growth prospects of the firm and the quality of the financials. The valuation metrics used are determined by the type of company and its economic sector. Within risk controls, portfolios are constructed on a bottom-up basis using a very long-termoutlook that has led to a low turnover rate, but can also produce higher tracking error. The portfolio will typically hold 50 - 70 securities. Expensecap of 0.95% expires on 11/23/11. Expenses after 11/23 will reflect actual fees capped at 1.10% through 2/27/13 (reviewed annually thereafter).Actual fees were 1.05% for the year ending 10/31/10.

Product Name : Aberdeen:Em Mkt;I (ABEMX)

Fund Family : Aberdeen Asset Management Inc

Ticker : ABEMX

Peer Group : IM Emerging Markets Equity (MF)

Benchmark : MSCI Emerging Markets Index






Net Expense : 1.10%

Turnover : 1%Among EMEA countries, positioning within Russia and Turkey was beneficial to fourth quarter performance results. In Turkey, banks rose sharply amid continued loan growth. Istanbul-based Akbank (+28%) was the fund’s top performing holding, benefiting froma bright outlook for future profits. Turkiye Garanti Bankasi was another notable contributor, rising 20%.Meanwhile, the fund benefited from its avoidance of Russian oil giant Gazprom which lagged due to lower gas sales to Europe.Within Latin America, the fund’s overweight position to Brazilian iron ore producer Vale (+20%) contributed positively amid hopes for stronger demand from China.In Emerging Asia, the fund benefited from underweight positions to both South Korea and Taiwan, which lagged the broader emerging markets.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Aberdeen Emerging Markets Instl 0.00 0.00 9.60 10.67 10.18 N/A 26.15 -11.05 27.58 76.55 -40.36 N/A N/A N/A N/A N/AMSCI Emerging Markets Index -1.57 -1.57 2.31 3.59 1.40 17.41 18.64 -18.17 19.20 79.02 -53.18 39.78 32.59 34.54 25.95 56.28

IM Emerging Markets Equity (MF) Median -0.64 -0.64 2.79 3.15 0.49 15.92 18.68 -19.59 18.31 73.59 -54.76 36.57 32.21 32.14 24.11 54.51

Aberdeen Emerging Markets Instl Rank 41 41 14 3 1 N/A 8 4 7 35 2 N/A N/A N/A N/A N/A

Aberdeen Emerging Markets Instl

March 31, 2013

79



CurrentQuarter

1Year

3Years

5Years

Aberdeen Emerging Markets Instl 0.0 (41) 9.6 (14) 10.7 (3) 10.2 (1)

MSCI Emerging Markets Index -1.6 (63) 2.3 (54) 3.6 (44) 1.4 (29)

5th Percentile 7.7 16.0 8.2 5.7

1st Quartile 1.3 6.5 4.9 1.6

Median -0.6 2.8 3.1 0.5

3rd Quartile -2.6 0.0 0.7 -1.2

95th Percentile -5.1 -6.8 -4.1 -6.0


March 31, 2013

80


SECTOR EXPOSURE (%)REGION WEIGHTS (%)





1Year

3Years

5Years

10Years

Return 9.60 10.67 10.18 N/A


vs. MSCI Emerging Markets Index


Alpha 7.23 7.17 8.47 N/A

Beta 0.97 0.87 0.88 N/A

R-Squared 0.94 0.94 0.96 N/A

Consistency 58.33 61.11 60.00 N/A




March 31, 2013

81

FUND INFO



FUND OBJECTIVE

The fund is managed on a relative basis with a focus on individual stock selection rather than economic or market cycles. The ultimate goal is toselect securities that have positive growth aspects at a reasonable price. A research-driven team approach utilizes front end quantitative screenswith qualitative assessments, sub-sector analysis, and economic research. The outcome is a diversified portfolio from both a sector and geographic basis, which holds securities with the best risk/reward for their given industry. Effective December 31, 2010, the fund is closed to new

investment.

Product Name : Nuveen Real Est;I (FARCX)

Fund Family : Nuveen Fund Advisors LLC

Ticker : FARCX

Peer Group : IM Real Estate Sector (MF)

Benchmark : FTSE NAREIT Equity REIT Index


Portfolio Manager : Rosenberg/Wenker/Sedlak




Net Expense : 1.04%

Turnover : 76%

The community centers, net lease, hotels, and industrials sectors contributed to quarterly outperformance. Health care REITs and the officesector were the two primary areas of relative underperformance.Within the community center sector, two underweight positions within the grocery anchor sub-category bolstered relative returns.Strong stock selection within a variety of industrial REITs led to outperformance.A continued underweight to heath care REITs detracted from results as the sector was the second best-performing area for the quarter. The team reduced the underweight during the quarter but still believes it is warranted given the sector’s lofty valuations and political risk.Performance was impacted negatively by the Fund’s underweight to small cap REITs.

T. Leedy Senior Alternative Investment Research Analyst, DiMeo Schneider & Associates, L.L.C 4Q12


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Nuveen Real Estate Secs I 6.79 6.79 14.11 17.14 8.29 13.94 18.34 7.89 30.57 30.53 -34.80 -15.19 39.47 15.29 32.49 37.58FTSE NAREIT Equity REIT Index 8.19 8.19 15.29 17.17 6.82 12.43 18.06 8.29 27.94 28.01 -37.74 -15.70 35.03 12.17 31.56 37.08

IM Real Estate Sector (MF) Median 6.61 6.61 12.78 15.98 6.03 11.67 16.83 7.89 27.46 29.04 -38.99 -17.22 34.69 12.48 32.31 35.96

Nuveen Real Estate Secs I Rank 41 41 31 15 9 1 23 50 13 28 10 16 1 17 45 29

Nuveen Real Estate Secs I

March 31, 2013

82



CurrentQuarter

1Year

3Years

5Years

Nuveen Real Estate Secs I 6.8 (41) 14.1 (31) 17.1 (15) 8.3 (9)

FTSE NAREIT Equity REIT Index 8.2 (12) 15.3 (19) 17.2 (14) 6.8 (30)

5th Percentile 9.5 22.7 19.7 10.7

1st Quartile 7.4 14.7 16.8 7.1

Median 6.6 12.8 16.0 6.0

3rd Quartile 6.1 11.6 15.3 5.0

95th Percentile 4.6 9.9 13.7 2.9


March 31, 2013

83

RISK CHARACTERISTICS REGION DISTRIBUTION

SECTOR EXPOSURE (%)

1Year

3Years

5Years

10Years

Return 14.11 17.14 8.29 13.94


vs. FTSE NAREIT Equity REIT Index

Tracking Error 0.85 0.90 2.43 2.18

Alpha -0.45 0.18 1.46 1.79

Beta 0.96 0.99 0.94 0.95

R-Squared 0.99 1.00 1.00 0.99

Consistency 33.33 52.78 53.33 58.33


Sharpe Ratio 1.50 1.04 0.41 0.60


March 31, 2013

84

FUND INFO


FUND OBJECTIVE


The fund combines a position in commodity-linked derivative instruments, primarily swaps through an offshore subsidiary, with an actively

managed portfolio principally consisting of Treasury Inflation Protected Securities (TIPS). The derivatives only require the fund to hold around 15%

of its assets as collateral. The commodity-linked derivatives capture the return potential and diversification benefits of the commodity futures

market, while PIMCO's active fixed income management seeks to outperform T-Bills, net of fees. The strategy has the added advantage of

benefiting concurrently from the inflation hedging properties of both commodity futures and TIPS (Double Real).

Product Name : PIMCO:Comm RR Str;Inst (PCRIX)

Fund Family : PIMCO

Ticker : PCRIX

Peer Group : IM Commodities General (MF)

Benchmark : Dow Jones-UBS Commodity Index


Portfolio Manager : Mihir Worah




Net Expense : 0.74%

Turnover : 177%

The Fund outperformed its benchmark for the quarter. Contributions came from TIPS duration and curve positioning.During 2012, the Fund benefited from TIPS outperforming T-Bills, positive results from alpha strategies, and gains from the team’s active TIPSmanagement.Longer dated positioning within the grains curves contributed to performance following a decline in front month contracts.Substitution trades detracted for the quarter. Specifically, platinum exposure in favor of gold negatively impacted results.Exposure to Australian linkers weighed on results as they sold off in the fourth quarter.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

PIMCO Commodity Real Ret Strat Instl -0.58 -0.58 1.46 7.47 -3.59 7.18 5.31 -7.56 24.13 39.91 -43.33 23.80 -3.04 20.50 16.36 29.82Dow Jones-UBS Commodity Index -1.13 -1.13 -3.03 1.42 -7.11 3.67 -1.06 -13.32 16.83 18.91 -35.65 16.23 2.07 21.36 9.15 23.93

PIMCO Commodity Real Ret Strat Instl

March 31, 2013

85


RISK CHARACTERISTICS STRATEGY ALLOCATION (index)1

Year3

Years5

Years10

YearsReturn 1.46 7.47 -3.59 7.18


vs. Dow Jones-UBS Commodity Index

Tracking Error 1.70 3.12 6.89 6.45

Alpha 4.56 6.04 5.81 3.39

Beta 0.98 1.07 1.17 1.14

R-Squared 0.99 0.98 0.94 0.92

Consistency 83.33 72.22 66.67 57.50


Sharpe Ratio 0.17 0.48 -0.02 0.36

PIMCO Commodity Real Ret Strat Instl

March 31, 2013

86

FUND INFO


FUND OBJECTIVE


Kayne Anderson MLP Investment Co. is a non-diversified, closed-end management investment company whose investment objective is to obtain ahigh after-tax total return by investing the vast majority of it's total assets in energy related MLPs and other Midstream Energy Companies. MLPsare publicly traded limited partnerships. Energy-related MLPs own domestic infrastructure assets that are used in the gathering, processing,transportation, storage, refining and distribution of energy-related commodities. Kayne Anderson differentiates itself through an extensive network of relationships with major energy companies and an investment team with over 134 years of combined energy experience. The fund may also investin private or restricted investment opportunities not available to retail investors along with debt securities of MLPs and other Midstream Energy

Companies.

Assets under Management (12/31/12)$4,412 Million

Inception Date9/28/04

Management Fee (12/31/12)2.4%

Management Fee is obtained from the most recentannual report. It represents the management fee asa percentage of average net assets which reflects

the fund's deferred tax liability.

The Fund’s price return of -2.3% outperformed its NAV return of -7.7% and the benchmark during the fourth quarter.The Fund’s premium to NAV decreased during the quarter by 2.3%.The benchmark and Fund’s top holding, Enterprise Products Partners L.P., detracted from results following year-end tax related selling. A 6%underweight helped to mitigate the overall loss.Two diversified MLPs, ONEOK Partners L.P. and Williams Partners L.P., negatively impacted performance due to capital raises during thequarter. Additionally, Williams Partners L.P. results missed analyst’s estimates as commodity price exposure reduced margins.Within gathering and processing an overweight to MarkWest Energy Partners L.P., which fell -4.8% during the quarter, was a drag onperformance.An underweight to propane MLPs aided results.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Kayne Anderson MLP Invst Co 17.83 17.83 19.53 16.72 12.45 N/A 5.80 3.04 35.39 69.92 -38.08 -5.66 44.98 3.02 N/A N/AAlerian MLP Index 19.74 19.74 23.06 21.50 18.47 17.54 4.80 13.88 35.85 76.41 -36.80 12.42 27.62 5.22 15.92 41.60

ALPS Alerian MLP ETF 12.70 12.70 13.25 N/A N/A N/A 2.20 10.09 N/A N/A N/A N/A N/A N/A N/A N/A

Kayne Anderson MLP Invst Co

March 31, 2013

87


RISK CHARACTERISTICS STRATEGY ALLOCATION1

Year3

Years5

Years10

YearsReturn 19.53 16.72 12.45 N/A


vs. Alerian MLP Index


Alpha 2.84 2.88 1.22 N/A

Beta 0.74 0.68 0.80 N/A

R-Squared 0.52 0.38 0.31 N/A

Consistency 58.33 50.00 51.67 N/A



Kayne Anderson MLP Invst Co

March 31, 2013

88

FUND INFO


FUND OBJECTIVE


Tortoise Energy Infrastructure Corp. is a non-diversified, closed-end management investment company. The fund seeks to provide investors withan efficient vehicle to invest in publicly traded energy infrastructure MLPs while providing a high level of total return with an emphasis on currentdistributions. The fund may additionally invest in private or restricted investment opportunities not available to retail investors along with debt

securities of MLPs and other Midstream Energy Companies.

Assets under Management (12/31/12)$1,900 Million

Inception Date3/2/04

Management Fee (12/31/12)1.60%

Management Fee is obtained from the most recentannual report. It represents the management fee asa percentage of average net assets which reflects

the fund's deferred tax liability.

The Fund’s price return of -5.1% underperformed its NAV return of -4.8% and the benchmark during the fourth quarter.The Fund’s premium to NAV decreased during the quarter by 1.8%.Oil and gas, crude oil pipelines, and refined products pipelines positively contributed to portfolio returns. Natural gas pipelines were the onlymaterial detractor for the quarter.Oil and gas MLPs was the top contributor for the quarter. The Fund benefited from not holding Linn Energy, LLC which declined 13% during thequarter.Within crude oil pipelines, an overweight to Sunoco Logistics Partners, L.P. drove outperformance.Poor stock selection in natural gas pipelines was a drag on performance. Boardwalk Pipeline Partners, LP and Enterprise Products Partners L.P.were the primary causes for underperformance. However an 8% underweight to Enterprise Products Partners L.P. helped mitigate the decline.Overweight positions in Williams Partners, L.P. and Targa Resources Partners, LP negatively impacted results due primarily to equity issuances.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Tortoise Energy Infrastructure Corp. 31.93 31.93 26.54 23.08 18.39 N/A 0.23 10.77 31.48 99.39 -44.50 1.71 37.49 4.54 N/A N/AAlerian MLP Index 19.74 19.74 23.06 21.50 18.47 17.54 4.80 13.88 35.85 76.41 -36.80 12.42 27.62 5.22 15.92 41.60

ALPS Alerian MLP ETF 12.70 12.70 13.25 N/A N/A N/A 2.20 10.09 N/A N/A N/A N/A N/A N/A N/A N/A

Tortoise Energy Infrastructure Corp.

March 31, 2013

89



Year3

Years5

Years10

YearsReturn 26.54 23.08 18.39 N/A


vs. Alerian MLP Index


Alpha 0.80 1.61 -0.03 N/A

Beta 1.13 1.01 1.07 N/A

R-Squared 0.75 0.66 0.70 N/A

Consistency 33.33 50.00 53.33 N/A



Tortoise Energy Infrastructure Corp.

March 31, 2013

90

FUND INFO


FUND OBJECTIVE


Assets under Management$5.7 Billion

Inception Date01/00

Minimum Investment$5,000,000 (Negotiable at Manager Discretion)

Management FeeAnnual fees: First $25 m = 1.25%, Next $25 m = 1.00%,Next $50 m = 0.80%, Over $100 m = 0.60%;Fee is subject to a 0.75% min

Performance FeeN/A

ContributionsQuarterly

WithdrawalsQuarterly with 70 days notice

Grosvenor Institutional Partners (“GIP”) is a globally diversified, multi-strategy, multi-manager portfolio that allocates its assets to hedge fundmanagers that specialize in a wide range of alternative investment strategies. GIP has two primary investment objectives: to provide its investorswith a superior long-term, risk-adjusted rate of return and to preserve capital. The Fund will allocate to approximately 40 managers.

Six out of eight sub-strategies delivered positive quarterly results as most funds produced solid gains.Credit and multi-strategy managers were the leading contributors to results for the quarter and 2012. Structured credit and non-agency RMBSdrove outperformance, as well as the Lehman Brothers liquidation and Tier-1 European financials.Equities produced solid results as long-biased managers were able to capture more of the rally after recently increasing exposures. Strong resultswithin financials, energy and Europe were slightly offset by select contrarian positions and poor stock selection in technology.Gains in macro, driven by short yen and long equity positioning, were offset by modest losses experienced by commodities managers whosuffered from declining grains prices.Portfolio hedging allocations were generally unprofitable and the team has removed them completely from the portfolio.The Fund experience moderate turnover during the quarter. Reallocations represent the team’s continued effort to increase exposure to highconviction niche strategies.

B. Anderson Alternative Investment Research Analyst, DiMeo Schneider & Associates, L.L.C 4Q12


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Grosvenor Inst'l Partners, L.P. 4.64 4.64 8.74 4.31 1.56 4.69 8.43 -3.82 6.66 13.95 -20.89 10.69 9.40 6.80 6.92 11.16HFRI Fund of Funds Composite Index 3.46 3.46 4.88 2.13 -0.22 3.86 4.79 -5.72 5.70 11.47 -21.37 10.25 10.39 7.49 6.86 11.61

Grosvenor Inst'l Partners, L.P.

March 31, 2013

91



Year3

Years5

Years10

YearsReturn 8.74 4.31 1.56 4.69


vs. HFRI Fund of Funds Composite Index

Tracking Error 0.89 1.44 1.71 1.63

Alpha 4.01 2.39 1.78 1.29

Beta 0.94 0.88 0.95 0.87

R-Squared 0.92 0.90 0.92 0.92

Consistency 75.00 61.11 61.67 55.00


Sharpe Ratio 2.66 1.01 0.23 0.60

Grosvenor Inst'l Partners, L.P.

March 31, 2013

92

FUND INFO


FUND OBJECTIVE


Firm Assets under Management$3.1 Billion

Inception Date10/02

Minimum Investment$5,000,000

Management Fee1%

Performance Fee10%

ContributionsMonthly

WithdrawalsQuarterly with 65 days notice

Magnitude International is a globally diversified multi-strategy FOHF which targets attractive risk-adjusted returns with limited exposure to passive

risk factors. Management displays a quantitative, arbitrage and relative value bias and will evaluate “corners of the market” for small positions.

The Fund outperformed its benchmark for the quarter and calendar year. With the exception of statistical arbitrage, all strategies contributedpositively during the quarter.Credit relative value continued to be the primary portfolio driver, benefiting from increased investor demand for structured credit product and theperception of improved housing fundamentals. The team is reducing the strategy’s allocation to structured credit and mortgages in response to aless attractive opportunity set going forward.Commodities relative value was the second largest contributor, driven in particular from a downward move in natural gas.Distressed and trading strategies generated moderate returns overall with underlying managers delivering consistent results.The Fund’s largest statistical arbitrage strategy holding weighed on results due to a notable drawdown in October despite similar managersproducing modest gains.During the quarter, the team replaced a manager in the equity hedge energy/utilities space, redeemed from a commodities relative valuemanager, and added a niche high frequency statistical arbitrage manager.

B. Anderson, Alternative Investment Research Analyst, DiMeo Schneider & Associates, L.L.C 4Q12


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Magnitude International 2.11 2.11 6.94 6.54 4.40 7.40 7.70 4.67 6.75 25.71 -21.64 13.54 14.30 8.67 8.42 11.60HFRI Fund of Funds Composite Index 3.46 3.46 4.88 2.13 -0.22 3.86 4.79 -5.72 5.70 11.47 -21.37 10.25 10.39 7.49 6.86 11.61

Magnitude International

March 31, 2013

93



Year3

Years5

Years10

YearsReturn 6.94 6.54 4.40 7.40


vs. HFRI Fund of Funds Composite Index

Tracking Error 2.34 2.74 3.16 2.86

Alpha 5.17 5.54 4.65 4.14

Beta 0.35 0.44 0.93 0.82

R-Squared 0.55 0.76 0.77 0.74

Consistency 58.33 66.67 68.33 61.67


Sharpe Ratio 4.36 2.76 0.63 1.06

Magnitude International

March 31, 2013

94

DEFINITION OF KEY STATISTICS

Returns Time-weighted average annual returns for the time periods indicated. Time weighted returns seek to eliminate the impact of external cash flows on the rate of return calculations. All returns are annualized if the period for which they are calculated exceeds one year.

Universe Comparison The universe compares the fund's returns to a group of other investment portfolios with similar investment strategies. The returns for the fund, the index and the universe percentiles are displayed. A percentile ranking of 1 is the best, while a percentile ranking of 100 is the worst. For example, a ranking of 50 indicates the fund outperformed half of the universe. A ranking of 25 indicates the fund was in the top 25% of the universe, outperforming 75%.

Returns In Up/Down Markets This measures how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the index, was positive and negative. Quarters with negative index returns are treated as down markets, and quarters with positive index returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. A simple arithmetic average of returns is calculated for the fund and the index based on the up quarters. A simple arithmetic average of returns is calculated for the fund and the index based on the down quarters. The up market capture ratio is the ratio of the fund's return in up markets to the index. The down market capture ratio is the ratio of the fund's return in down markets to the index. Ideally, the fund would have a greater up market capture ratio than down market capture ratio.

Standard Deviation Standard deviation is a statistical measure of the range of performance within which the total returns of a fund fall. When a fund has a high standard deviation, the range of performance is very wide, meaning there is a greater volatility. Approximately 68% of the time, the total return of any given fund will differ from the average total return by no more than plus or minus the standard deviation figure. Ninety-five percent of the time, a fund’s total return will be within a range of plus or minus two times the standard deviation from the average total return. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more they vary from one another, the higher the standard deviation. Standard deviation can be misleading as a risk indicator for funds with high total returns because large positive deviations will increase the standard deviation without a corresponding increase in the risk of the fund. While positive volatility is welcome, negative is not.

R-Squared This reflects the percentage of a fund’s movements that are explained by movements in its benchmark index. An R-squared of 100 means that all movements of a fund are completely explained by movements in the index. Conversely, a

low R-squared indicates very few of the fund’s movements are explained by movements in the benchmark index. R-squared can also be used to ascertain the significance of a particular beta. Generally, a higher R-squared will indicate a more reliable beta figure. If the R-squared is lower, then the beta is less relevant to the fund’s performance. A measure of diversification, R-squared indicates the extent to which fluctuations in portfolio returns are explained by market. An R-squared = 0.70 implies that 70% of the fluctuation in a portfolio's return is explained by the fluctuation in the market. In this instance, overweighting or underweighting of industry groups or individual securities is responsible for 30% of the fund's movement.

Beta This is a measure of a fund’s market risk. The beta of the market is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the market in up markets and 10% worse that the market in down markets. It is

important to note, however, a low fund beta does not imply the fund has a low level of volatility; rather, a low beta means only that the fund’s market-related risk is low. Because beta analyzes the market risk of a fund by showing how responsive the fund is to the market, its usefulness depends on the degree to which the markets determine the fund's total risk (indicated by R-squared ).

Alpha The Alpha is the nonsystematic return, or the return that can’t be attributed to the market. It can be thought of as how the manager performed if the market’s return was zero. A positive alpha implies the manager added value to the return of the portfolio over that of the market. A negative alpha implies the manager did not contribute any value over the performance of the market.

Sharpe Ratio The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. Higher numbers are better, indicating more return for the level of risk experienced. The ratio is a fund's return minus the risk-free rate of return

(30-day T-Bill rate) divided by the fund’s standard deviation. The higher the Sharpe ratio, the more reward you are receiving per unit of total risk. This measure can be used to rank the performance of mutual funds or other portfolios.

Treynor Ratio The Treynor ratio measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. The ratio relates excess return over the risk-free rate to the additional risk taken; however, systematic risk is used instead of total risk. The Treynor ratio is similar to the Sharpe ratio, except in the fact that it uses the beta to evaluate the returns rather than the standard deviation of portfolio returns. High values mean better return for risk taken.

Tracking Error Tracking error measures the volatility of the difference in annual returns between the manager and the index. This value is calculated by measuring the standard deviation of the difference between the manager and index returns. For example, a tracking error of +/- 5 would mean there is about a 68% chance (1 standard deviation event) that the manager's returns will fall within +/- 5% of the benchmark's annual return.

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

Consistency Consistency shows the percent of the periods the fund has beaten the index and the percent of the periods the index has beat the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the index frequently.

Downside Risk Downside risk is a measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the factor, the riskier the product.

M-Squared M-squared, or the Modigliani risk-adjusted performance measure is used to characterize how well a portfolio’s return rewards an investor for the amount of risk taken, relative to that of some benchmark portfolio and to the risk-free rate.

95

VALUATION POLICY

DiMeo Schneider does not engage an independent third party pricing service to value securities. Our reports are generated using the security prices provided by custodians used by our clients. Our pricing hierarchy is to first use valuations provided by the custodian that holds assets for the greatest number of clients. If a client holds a security not reported by this custodian, the valuation is generated from the next most prominent custodian, and so forth. Each custodian uses pricing services from outside vendors, where the vendors may generate nominally different prices. Therefore, this report can reflect minor valuation differences from those contained in a custodian’s report. REPORTING POLICY This report is intended for the exclusive use of clients of DiMeo Schneider & Associates, L.L.C. Content and format is privileged and confidential. Any dissemination or distribution of this report is strictly prohibited. The information contained in this report has been obtained from trade and statistical services and other sources which are deemed but not guaranteed to be accurate. Any opinions expressed herein reflect our judgment at this date and are subject to change. OTHER Rule 204-3 under the Investment Advisors Act of 1940 requires that we make an annual offer to clients to send them, without charge, a written disclosure statement meeting the requirements of such rule. We will be glad to send a copy of such a statement to you upon your written request. Please advise us of any changes in your objectives or circumstances. VANGUARD SPLICED INDEX DEFINITIONS Vanguard Balanced Composite Index: Made up of two unmanaged benchmarks, weighted 60% Dow Jones U.S. Total Stock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) and 40% Lehman

Brothers U.S. Aggregate Bond Index through May 31, 2005; 60% MSCI US Broad Market Index and 40% Barclays U.S. Aggregate Bond Index through December 31, 2009; 60% MSCI US Broad Market Index and 40% Barclays U.S. Aggregate Float Adjusted Index through January 14, 2013; and 60% CRSP US Total Market Index and 40% Barclays U.S. Aggregate Float Adjusted Index thereafter.

Vanguard REIT Spliced Index: MSCI US REIT Index adjusted to include a 2% cash position (Lipper Money Market Average) through April 30, 2009; MSCI US REIT Index thereafter.

Vanguard Spliced Barclays US1-5Yr Gov/Cr Flt Adj Index: Barclays U.S. 1–5 Year Government/Credit Bond Index through December 31, 2009; Barclays U.S. 1–5 Year Government/Credit Float Adjusted Index thereafter.

Vanguard Spliced Barclays US5-10Yr Gov/Cr Flt Adj Index: Barclays U.S. 5–10 Year Government/Credit Bond Index through December 31, 2009; Barclays U.S. 5–10 Year Government/Credit Float Adjusted Index thereafter.

Vanguard Spliced Barclays US Agg Flt Adj Index: Barclays U.S. Aggregate Bond Index through December 31, 2009; Barclays U.S. Aggregate Float Adjusted Index thereafter.

Vanguard Spliced Barclays US Long Gov/Cr Flt Adj Index: Barclays U.S. Long Government/Credit Bond Index through December 31, 2009; Barclays U.S. Long Government/Credit Float Adjusted Index thereafter.

Vanguard Spliced Emerging Markets Index: Spliced Emerging Markets Index reflects performance of the Select Emerging Markets Index through August 23, 2006; the MSCI Emerging Markets Index through January 9, 2013; and the FTSE Emerging Transition Index thereafter.

Vanguard Spliced Extended Market Index: Dow Jones Wilshire 4500 Index through June 17, 2005; S&P Transitional Completion Index through September 16, 2005; S&P Completion Index thereafter.

Vanguard Spliced Growth Index: S&P 500/Barra Growth Index through May 16, 2003; MSCI US Prime Market Growth Index thereafter.

Vanguard Spliced Large Cap Index: Consists of MSCI US Prime Market 750 Index through January 30, 2013, and the CRSP US Large Cap Index thereafter.

Vanguard Spliced Mid Cap Index: S&P MidCap 400 Index through May 16, 2003; the MSCI US Mid Cap 450 Index through January 30, 2013; and the CRSP US Mid Cap Index thereafter.

Vanguard Spliced Small Cap Growth Index: S&P SmallCap 600/Barra Growth Index through May 16, 2003; MSCI US Small Cap Growth Index thereafter.

Vanguard Spliced Small Cap Index: Russell 2000 Index through May 16, 2003; the MSCI US Small Cap 1750 Index through January 30, 2013; and the CRSP US Small Cap Index thereafter.

Vanguard Spliced Small Cap Value Index: S&P SmallCap 600/Barra Value Index through May 16, 2003; MSCI US Small Cap Value Index thereafter.

Vanguard Spliced Total International Stock Index: Consists of the Total International Composite Index through August 31, 2006; the MSCI EAFE + Emerging Markets Index through December 15, 2010; and the MSCI ACWI ex USA IMI Index thereafter. Returns for the MSCI indexes are adjusted for withholding taxes.

Vanguard Spliced Total Stock Market Index: Dow Jones Wilshire 5000 Index through April 22, 2005; MSCI US Broad Market Index thereafter.

Vanguard Spliced Value Index: S&P 500/Barra Value Index through May 16, 2003; MSCI US Prime Market Value Index thereafter.

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