concordia university, nebraska & concordia foundation,...

Concordia University, Nebraska & Concordia Foundation, Inc.September 30, 2010

Exceeding Your Expectations

500 West Madison Street, Suite 3855 | Chicago, IL 60661 | 312.853.1000

QUARTERLY CONSIDERATIONS

GENERAL

September Surprise – September produced history-making returns with the S&P 500 Index rising 9%, its best performance since 1939. For the third quarter, the S&P 500 Index returned 11%, the EAFE Index jumped 17% and the Barclays Aggregate Bond Index returned 3%.

A Winning Vote – Since 1950, midterm elections have typically kicked-off a period of strong returns for U.S. investors. During the year after midterm elections, average returns for large caps of 23% and small caps of 31% have been significantly better than the long-term average annual returns since 1950 of 11% and 14%, respectively.

Definite Deficit – With the CBO projected FY2010 budget deficit of $1.34 trillion, the last 2 years will have created $2.75 trillion of debt. The 17 fiscal years from 1992 through 2008 created $2.62 trillion.

On The Horizon – As announced at our 2010 Investor Conference, we are excited to soon rollout our new performance evaluation reports. Based on your feedback, the reports will be even more concise, timely and customizable.

Roller Coaster –1 day S&P 500 movements of 2% or more (gain/loss) Past 50 Years: every 21 days on average Since September 2008: every 4 days on average

Source: BTN Research

PLAN SPONSORS

Conversion Decision – The Small Business Jobs Act of 2010 allows participants eligible for a distribution to roll their pretax account balances into a designated Roth account within the plan. Sponsors need to amend their plan to allow for the rollovers and may want to expand distribution options.

Need to Educate – On average, families have saved about $28,000 to pay for college. About 12% of that money is in 529 plans, but 23%, the largest portion, is in retirement savings. Plan sponsors may want to add college expense planning to participant retirement education programs.

A Move Abroad – Since 1999, the average U.S. pension fund’s equity allocation to international markets has grown by nearly half, from 23% to 38.5%, according to Pensions and Investments.

NON-PROFIT ORGANIZATIONS

Lower Prices – The Higher Education Price Index (HEPI) rose 0.9%, less than half the 2.3% rate for FY2009 and continuing a decelerating trend that began in 2008. The biggest decline was in supplies & materials and utilities and the highest increase in fringe benefits and administrative salaries.

Free Resource – The SPARK Institute issued the "Best Practices for Multiple Vendor 403(b) Plans Form 5500 Data Aggregation” to assist plans that use multiple vendors and must gather and aggregate data from their vendors. Contact us for the report or for assistance with your defined contribution plan.

THE WEALTH OFFICE™

IRA RMD – Despite the moratorium on IRA Required Minimum Distributions (RMDs) for 2009 as a result of the financial crisis, IRA holders age 70.5 and older are required to complete an RMD during 2010. The Wealth Office will soon be contacting its clients with IRAs who have yet to complete an RMD for this year.

Are You Withholding Something? – Even though the Making Work Pay Tax Credit lowered tax withholding rates in 2009 and 2010 for millions of American households, some workers and retirees who receive pension payments may need to check their Federal withholding to be sure enough tax is being taken out of their checks. The IRS withholding calculator on www.IRS.gov can help a taxpayer compute the proper withholding amount.

Bad Press – Apocalyptic predictions regarding the municipal bond markets have been in vogue with the financial press lately. While many municipalities are experiencing a financial squeeze, the imminent implosion of the muni bond market as predicted by some press seems a stretch. The Wealth Office can help you ascertain the quality and risks with respect to your municipal bond holdings.

Who’s Makin’ the Sausage? – Upcoming mid-term elections should add some clarity to estate planning and tax projections. While it is extremely unlikely that either party will gain a majority of seats sufficient to enact their agenda over the objections of the other party, the resulting composition of the House and Senate should offer some insight into the direction any compromise is likely to take.

1


ECONOMY

The Federal Reserve continues to keep interest rates on hold at the 0% to 0.25% range. The central bank also announced that it would not allow its balance sheet to shrink as securities reached maturity, signaling that risks of an economic downturn have increased enough for the central bank to delay exiting from the massive liquidity and stimulus programs. The next FOMC meeting is scheduled for November 2nd-3rd, 2010.

U.S. GDP advanced 1.7% in the second quarter. The advance primarily reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, exports, private inventory investment, federal government spending and residential fixed investment. Analysts estimate that growth will continue through year-end 2010, although at a very modest pace. The third quarter GDP advance estimate is due out on October 29th, 2010.

According to the U.S. Bureau of Labor Statistics, unemployment rose to 9.6% to end the quarter. The jobless rate has now topped 9.5% for 14 straight months, the longest stretch since the 1930s. Private payrolls added an average of 91,000 jobs a month during the quarter, a pace economists view as too slow to bring the jobless rate down.

As year-end approaches, investors are growing increasingly preoccupied with U.S. government policy, both on the monetary and fiscal front. The Fed has recently communicated that it is prepared to provide additional monetary stimulus if necessary, likely via a new program of quantitative easing. Meanwhile, investors still lack clarification about income, capital gains, dividend and estate tax rates for 2011 or future years.

On the political front, the November mid-term elections are quickly approaching. 435 House of Representatives seats and 37 of the 100 Senate seats are up for grabs. Meanwhile, governor races will be held in 37 U.S. states. Currently, Democrats control both the House and the Senate, but Republicans hope to win at least one chamber of the U.S. Congress in the approaching mid terms, a move that could have far-reaching political implications.

14.1%

13.3%

10.2%

12.3%

17.5%

3.7%

11.1%

11.3%

11.3%

12.3%

13.3%

16.5%

DJIA

Russell 2000

S&P 500

NASDAQ

Russell Mid Cap

MSCI EAFE

Broad Equity Market Index Returns Ending 9/30/10

QTR

1 Year

U.S. EQUITY MARKETS

Third quarter equity markets were influenced by policymakers, regulators and legislators. Optimism returned again in September, as investors began to embrace the idea of a second round of economic stimulus aimed at shoring up the weak consumer outlook. Easing worries over sovereign debt along with reassuring economic data from China and a rebounding Euro further improved confidence. Favorable corporate earnings reports continued to highlight improving operating leverage driven by cost discipline.

Despite mixed economic data and wavering consumer confidence, strong corporate profits and an accommodative Fed drove the S&P 500Index to its best September return since 1939. The Index gained 11% for the quarter, to end at 1,141. Over 80% of S&P 500 companies beat their earnings estimates for the second quarter and total revenues were up 9% versus a year ago. The S&P 500 closed the quarter at a multiple of 13.8 times 2010 earnings estimates. The current low level of inflation suggests valuations on the S&P 500 index have room to expand. 175 of the 500 stocks in the S&P 500 rose 15% or more over the past three months.

The DJIA gained 11% for the quarter, to end at 10,788. Caterpillar was the top performer in the Index, rising 31% as investor fears of a double-dip recession eased and a weak U.S. dollar aided the company’s sizable market position in six continents. Bank of America was the worst performer in the Index, losing nearly 9% on weak investor sentiment and concerns regarding the mortgage foreclosure mess.

Companies are hoarding cash. While dividends have risen over the past few quarters, they remain far below their 2007 peaks. Shareholders are beginning to pressure companies to deploy some of their cash. The result: M&A activity has picked up materially during the third quarter. A number of large, high profile mergers have been announced, with the value of global activity hitting its highest level in two years. IPO’s started to bounce back as falling volatility boosted investors’ comfort level with new issues. The fourth quarter could be pivotal as several government-backed IPOs such as GM and AIG are set to price in excess of $10 billion each.

Growth outperformed value and small-cap trumped large-cap for the quarter and year. Increased M&A activity bodes well for small caps as investors speculate on the next acquisition candidate. The low interest rate environment improved the attractiveness of large cap stocks. Large companies with strong credit profiles were able to issue cheap debt to fund dividends, share buybacks, acquisitions or expansions.

Hedge funds rebounded in the third quarter averaging 3% gains as a reduction in correlations across securities helped stock pickers. All major strategies posted gains with the strongest results from long/short strategies. In an environment dominated by caution, the biggest funds continued to receive the bulk of new cash inflows. MLP’s yield of 6.3% continued to attract investors.

2


U.S. EQUITY SECTORS

Telecom posted solid gains on prospects of a more profitable tiered pricing system, rather than the current all-inclusive plans. Investors were further lured by their attractive yields, as many of these companies offer dividend yields that exceed the yields on their bonds.

Fears that financial reform would limit gains on future profitability of banks sparked volatility. The constrained housing market, the potential for net interest margin compression and still-high mortgage delinquency rates also hurt. Life insurers with large annuity businesses lagged due to pro-cyclical market exposure in a fragile economic recovery. Credit card processors trailed due to new regulations restricting transaction fees.

Healthcare stocks continued to be penalized for uncertainty regarding the implementation of legislation passed earlier in the year, which could pressure their pricing models, as well as upcoming patent expirations. A host of companies reported lower profits.

Capital spending trends continued to buoy prospects for technology. In addition, acquisitions heated up during the quarter, including Dell and HP’s bidding war for 3Par and Intel’s acquiring McAfee.

Cyclical sectors such as materials and industrials were aided by reports of record demand for steel, potential shortages in copper, which hit a high for the year, record high gold prices and increased M&A activity. Loose monetary policies and the competitive devaluation of paper currencies further aided these areas. Defense companies lagged due to concerns over new defense department’s initiative to cut costs.

10.6 8.94.3

11.8

21.0

12.4 13.017.8

14.3 15.212.98.3

-2.8

10.7

19.111.9

4.710.2

19.423.6

Consumer Staples

Health Care Financials Information Technology

Telecom Utilities Energy Materials Industrials Consumer Discretionary

Market Returns by Major Sectors of S&P 500 Index, Third Quarter 2010QTR 1 Year

REAL ESTATE

Domestic REITs gained 13% for the quarter. REITs’ bond-like income stream coupled with improving operating fundamentals continued to provide price support. All sectors posted gains, led by class A regional malls and self storage, both of which benefited from low cost to capital and desirable real estate. Hotels lagged as revenue per available rooms has not yet recovered. REITs raised nearly $33 billion during 2010, using the proceeds to pay down debt and begin to make strategic acquisitions of properties. REITs debt ratio currently stands at 44%, down nearly one-third from 66% at the REIT market’s trough in March 2009. REITs ended the quarter yielding 3.8%.

International REITs rallied 22% for the quarter, sparked by positive economic data from Germany and signs that China and Australia may moderate their tightening bias. Japan’s real estate market was boosted by the prospects of further monetary easing measures.

COMMODITIES

Commodities were direct beneficiaries of the improved economic outlook, rising on the Fed’s announcement of additional quantitative easing as well as a declining U.S. dollar. Energy shed 4%, weighed down by heavy losses in natural gas. Natural gas was driven lower by reduced cooling demand with summer coming to a close in addition to ample storage amounts. Grains gained 29% driven by lowered global production estimates due to a severe drought in Russia and Eastern Europe. Corn and soybeans rose in sympathy given the potential for wheat to gain acreage on these crops. Industrial metals also surged 20%, helped by the weaker dollar and the potential growth implications from additional quantitative easing. Softs rallied 27% with sugar prices driving most of the gains as adverse weather conditions in Brazil caused export delays.

11.6%

-4.3%

28.7%20.4%

4.2% 4.1% 7.7%

27.3%10.0%

-14.8%

22.1% 20.9%11.4% 1.8%

29.0% 24.6%

DJ - UBS Commodity

Energy Grains Industrial Metals Livestock Petroleum Precious Metals Softs

DJ UBS Commodity Returns, Third Quarter 2010QTR 1 Year

FIXED INCOME MARKETS

Yields continued to fall sharply through the third quarter, driven by concerns over the slowing economic growth, a consensus among market participants that the Fed Fund’s rate is anchored through 2011, and the prospects for quantitative easing. The yield curve continued to flatten with the 2-year Treasury falling 19 bps and the 10-year falling 44 bps. Interestingly, the 2-year Treasury yield ended the quarter at 0.42%, a full 20 bps below the low in yields that followed the collapse of Lehman in 2008. TIPS gained despite disinflationary pressures as expectations of slower growth and additional quantitative easing by the Federal Reserve helped drive real yields lower.10-year breakevens ended September at 1.80%. Agencies gained on steady demand and continued net negative supply to support the market.

3


FIXED INCOME MARKETS (continued)

Yield Curve Ending 9/30/10 Historical Yield Spreads vs 10-Year Notes Ending 9/30/10

0.16%0.42% 1.27%

2.53%

3.69%

0.18% 0.61%

1.79%

2.97%3.91%

3 Mo. 2 Year 5 Year 10 Year 30 Year

9/30/2010 6/30/2010

0

2

4

6

8

10

Agency AA Corporate BB Corporate

Corporate bonds, both investment grade and high yield, posted gains for the quarter. As corporations continue to show improving fundamentals, lower leverage and implement cost-cutting measures, investors appear to find the additional yield offered by corporate debt relatively attractive despite the credit risk. Financials fared best as the long-awaited Basel III accord provided banks with a longer implementation timetable to comply with new capital requirements. Blue chip companies took advantage of strong demand to issue debt at record low yields. Microsoft issued 3-year bonds with a record-breaking yield of just 0.875%. In the first nine months of the year, companies sold more high-yield debt versus 2009. Caution on the overall economy drove higher quality issues to outperform lower quality.

Agency MBS lagged on a combination of unappealing valuations and low demand as lower rates and ongoing rumors of mass refinancing initiatives lead to renewed prepayment and supply fears. Structured finance debt posted solid gains as investors continued to reach for yield in a low-yield environment. CMBS extended their gains on very limited new issuance as well as stabilized fundamentals. Auto and credit card ABS spreads tightened nearly back to pre-Lehman levels amid strong investor demand and limited supply. Declining industry charge-off rates and lower customer delinquencies foreshadow further improvements in 2011.

Munis rose 2% during the quarter. While structural budget imbalances continued to be the big story for a number of large states, these headline credit concerns were not powerful enough to derail other positive technical factors, leading to lower-rated issues performing best. As the yield curve flattened, longer-dated bonds fared best. BABs continued to be supported by strong demand from pension, endowment and non-U.S. investors. Municipal ratios were mixed relative to Treasuries, with no strong trend evident.

The unhedged U.S. investor in sovereign debt enjoyed solid gains in the quarter amid lower yields and a declining U.S. dollar. In Germany, the U.K. and Japan, government bond yields fell across the curve as investors gravitated towards slow growth and low inflation expectations. Emerging market debt was strong as economic data was supportive of continued global growth. Concerns China would aggressively restrict growth proved unfounded, supporting emerging market valuations, as did investor inflows.

2.5 2.7 1.6 0.6 2.5 6.6 4.7 2.7 2.47.3 6.5 5.9 8.3 10.4

1.98.2 7.3 5.3 5.8

8.9

23.4

11.7 9.55.3

18.0 15.519.6

15.9

4.5 4.8

Barclays Aggregate

Treasuries Agencies Mortgage-Backed

Securities

Asset-Backed

Securities

CMBS Investment-Grade

Corporates

TIPS ML Muni 3-7 Yr

High Yield BB

High Yield B

High Yield CCC

Emerging Mkt Debt

Non-US$ Bonds

(unhedged)

Non-US$ Bonds

(hedged)

Fixed Income Returns by Major Sectors Third Quarter 2010QTR 1 Year

INTERNATIONAL DEVELOPED MARKETS

International developed markets posted positive results in the third quarter, with the MSCI EAFE Index advancing 17%. Sectors such as energy, materials and consumer discretionary were among the top performers, while technology, healthcare and utilities underperformed.

International growth stocks marginally outperformed international value stocks with the MSCI EAFE Growth Index rising 17% and the MSCI EAFE Value Index gaining 16%. Across market capitalizations, international small caps generally outperformed international large caps.

During the quarter, the U.S. dollar declined against most major currencies. Even as the focus of Europe’s debt problems shifted, the Euro advanced sharply against the U.S. dollar as the crisis appeared to be contained. As the yen hit a multi-year high against the U.S. dollar, the Japanese government stepped into the currency markets to intervene for the first time since 2004.

11.2% 6.4% 5.7% 2.2% 1.3% 1.9% 11.2% 13.9%

-6.8%

7.5%

-1.4%

7.5% 2.0% 4.0% 5.8% 9.9%

Euro Japanese yen British pound Mexican peso Chinese yuan Canadian dollar Swiss franc Australian dollar

Currency Returns versus U.S. Dollar, Third Quarter 2010QTR 1 YEAR

4


INTERNATIONAL DEVELOPED MARKETS (continued)

The MSCI Canada Index ended up 13%. The Bank of Canada raised rates in two separate 25 basis point hikes to 1%. The central bank said that while rate increases mean financial conditions have tightened modestly, they are still exceptionally accommodative. Meanwhile, GDP growth came in at a lower-than-expected 2% amid weakness in the manufacturing, construction and retail sectors, making it unlikely the central bank will take further action in the near-term. At the same time, the jobless rate remains high and workers are running out of unemployment benefits while they look for new jobs.

The MSCI Europe Index advanced 19%. Germany rose 17% as consumer sentiment improved and unemployment fell. France gained 21% despite growing opposition to a number of proposed austerity measures designed to slash state spending. Most recently, the French have rallied against pension reform and President Nicolas Sarkozy’s plan to raise the retirement age from 60 to 62. The European Central Bank left interest rates unchanged at a record low of 1% during the quarter as the central bank remains in a holding pattern as questions surrounding a sustainable Eurozone recovery loom.

For the quarter, the MSCI United Kingdom Index gained 20% as the Bank of England left rates unchanged at a historic low of 0.5%. U.K. GDP was revised upward to 1.2%, the highest quarterly rate since 2001. The revision was largely due to a pick-up in the construction industry and strong household spending. On the political front, Prime Minister David Cameron began to tackle the country’s ballooning deficit insisting his government has no option but to eliminate expensive programs, trim welfare payments and hold down departmental budgets.

The MSCI Japan Index rose 6% as officials intervened in the foreign exchange markets in a bid to halt the yen’s advance. Export-reliant businesses cheered the Japanese government’s efforts to weaken the yen, which followed a 15-year high for the currency versus the U.S. dollar. Political turmoil persisted as newly-elected Prime Minister Naoto Kan survived a takeover attempt from within his own party. Kan defeated Ichiro Ozawa, sparing the nation the upheaval of having its third new prime minister in just 12 months.

The MSCI Pacific ex-Japan Index advanced 22%. Australia rallied 24% after newly-elected Prime Minister Julia Gillard formally revised plans for a new tax on mining companies. Singapore gained 16% as GDP grew at a stronger-than-expected pace of 24% and exports soared. Hong Kong rose 22% and was bolstered by improved economies in China and Southeast Asia, which are major trading hubs for the country. New Zealand advanced 14% as the central bank raised interest rates by 25 basis points to 3%.

13.810.5 10.5

21.4 18.5 15.419.2 18.3

7.9

17.120.7

9.9

17.913.0

21.825.6

13.8

25.4

14.019.3

Consumer Staples

Utilities Healthcare Energy Materials Industrials Telecom Consumer Discretionary

Info Technology Financials

International Equity Market Returns by Major Sectors, Third Quarter 2010

MSCI EAFE MSCI EM (emerging markets)

INTERNATIONAL EMERGING MARKETS

The MSCI EM Index advanced 18% during the quarter, benefiting from strong corporate earnings and robust consumption in many emerging economies. Consumer discretionary, industrials and materials were among the top performing sectors, while energy, utilities and telecommunications services underperformed.

The MSCI EM Latin America Index gained 21%. Brazil rose 22% on strength in financial services and industrial-related stocks. On the political front, Dilma Rousseff is favored to become Brazil’s first female leader, following a presidential run-off election at the end of October. Rousseff has promised to continue many of the successful programs put in place by President Lula da Silva. Mexico advanced 12%, although investors remained cautious as the country’s drug-related violence continued to escalate. Meanwhile, the smaller markets of Peru, Colombia and Chile gained 25%, 32% and 33%, respectively.

The MSCI EM Asia Index ended up 16%. China gained 11% as the country surpassed Japan as the world’s second largest economy during the quarter. Gains in information technology shares sent the markets of South Korea and Taiwan up 17% and 20%, respectively. India advanced 15%. However, high single-digit inflation remained a concern among India’s policymakers, prompting the fifth hike in interest rates so far in 2010. The smaller Asian markets of the Philippines and Thailand were notable standouts, rising 30% and 33%, respectively.

The EMEA (Eastern Europe, Middle East and Africa) Index rose 22%. South Africa soared 25% despite concerns about nationwide labor strikes. Within Eastern Europe, Hungary and Poland rallied 27% and 36%, respectively, as stress tests on European banks helped alleviate concerns about weakness in the region’s financial system. Russia advanced 13%, spurred by gains among commodity producers. In the Middle East, Turkey rallied 32% as voters approved constitutional amendments in a referendum that could shift the country from governance by a deeply entrenched secular establishment to a more democratic state.

5.9

10.7 11.5 11.6 13.4 13.416.0 16.7

19.4 19.8 20.9 21.0 21.8 22.225.4

Japan China Mexico Pacific Canada Russia EM Asia Germany Europe United Kingdom

France EM Latin America

Brazil Pacific (Ex-Japan)

South Africa

Non-U.S. Equity Market Returns by Country (U.S.$), Third Quarter 2010

5


Financial Markets Performance Ending September 30, 2010

Returns for Periods Exceeding One-Year are Annualized.

U.S. Equity QTR YTD 1YR 2YR 3YR 4YR 5YR 10YR

S&P 500 Composite Index 11.3 3.9 10.2 1.3 -7.2 -1.8 0.6 -0.4

Dow Jones Industrial Average 11.1 5.6 14.1 2.8 -5.4 0.8 3.1 2.5

Russell 1000 Growth 13.0 4.4 12.7 5.1 -4.4 1.1 2.1 -3.4

Russell 1000 Value 10.1 4.5 8.9 -1.3 -9.4 -3.9 -0.5 2.6

Russell Mid Cap 13.3 11.0 17.5 6.5 -4.2 0.9 2.6 4.9

Russell 2000 11.3 9.1 13.3 1.3 -4.3 -0.4 1.6 4.0

Russell 2000 Growth 12.8 10.2 14.8 3.7 -3.7 1.5 2.3 -0.1

Russell 2000 Value 9.7 7.9 11.8 -1.1 -5.0 -2.3 0.7 7.7

NASDAQ 12.3 4.8 12.3 7.5 -3.5 2.0 2.8 -3.6

Russell 3000 11.5 4.8 11.0 1.9 -6.6 -1.3 0.9 0.1

NAREIT Equity REIT 12.8 19.1 30.3 -3.4 -6.1 -3.3 1.9 10.4

Fixed Income & Cash Equivalents QTR YTD 1YR 2YR 3YR 4YR 5YR 10YR

Barclays Cap US Aggregate 2.5 8.0 8.2 9.4 7.4 6.8 6.2 6.4

Citigroup High Yield Market 6.3 10.7 17.5 19.3 8.0 7.9 7.8 7.8

Citigroup Inflation-Linked Securities 2.7 7.3 9.5 7.4 7.0 6.5 5.5 7.5

Merrill Lynch Muni 3-7 Years 2.4 4.9 5.3 8.3 6.7 6.0 5.4 5.4

Citigroup Hedged Non-U.S. Dollar Bond 1.9 4.6 4.8 6.3 5.7 5.1 4.8 5.2

Citigroup Unhedged Non-U.S. Dollar Bond 10.4 6.8 4.5 10.1 8.4 8.7 7.3 8.0

Citigroup Treasury Bill-3 Month 0.0 0.1 0.1 0.3 1.0 2.0 2.5 2.4

Ryan Labs 3 Yr GIC 0.8 2.7 3.7 4.2 4.4 4.4 4.2 4.5

International Equity QTR YTD 1YR 2YR 3YR 4YR 5YR 10YR

MSCI EAFE 16.5 1.5 3.7 3.8 -9.1 -1.5 2.4 3.0

S&P Large/Mid Value World x U.S. 16.5 2.9 3.4 4.2 -8.5 -0.7 3.4 5.2

S&P Large/Mid Growth World x U.S. 16.1 2.3 7.2 5.6 -7.4 -0.0 3.1 1.8

S&P Small Cap World x U.S. 17.4 9.4 9.9 10.0 -7.5 0.1 4.2 7.5

MSCI Emerging Markets 18.2 11.0 20.5 20.0 -1.2 11.2 13.1 13.8

S&P Developed World Property x U.S. 21.7 10.7 12.3 8.7 -11.3 -3.2 2.9 9.4

Miscellaneous QTR YTD 1YR 2YR 3YR 4YR 5YR 10YR

Consumer Price Index 0.2 1.1 1.1 -0.1 1.5 1.9 1.9 2.4

DJ UBS Commodity Index 11.6 0.9 10.0 -8.4 -6.8 -1.4 -2.3 5.2

HFN Fund of Funds – Multi Strategy Avg. 3.0 1.4 2.5 0.1 -3.3 0.6 1.7 4.3

Alerian MLP 11.2 24.3 45.0 32.2 12.6 14.8 12.8 17.9

*All indices are unmanaged and investors can not invest directly into an index. Past performance is not indicative of future results.

6


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. Russell 1000 Growth measures the performance of the 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 2000 measures the performance of the small-cap stocks. 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. 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. NAREIT Equity REITs measures equity REITs. The index contains health care REITs, but no mortgage and hybrid REITs. The Barclays Aggregate Index is an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of at least one year. Citigroup High Yield Market is a market-cap weighted index, which measures the performance of below investment grade, Cash-Pay, Zero-to-Full, Pay-in-Kind, step-coupon bonds, and Rule 144A bonds issued by corporations domiciled in the United States or Canada, with remaining maturities of at least one year. All bonds must have a maximum quality rating of BB+/Ba1 by either S&P or Moody’s and the minimum amount outstanding at entry/exit must be $100 million. Citigroup Inflation-Linked Securities measures bonds with fixed rate coupon payments that adjust for inflation as measured by Consumer Price Index. All bonds must have a minimum maturity of one year and a minimum amount outstanding of $1 billion for both entry and exit. It currently comprises only Treasury securities. Merrill Lynch Muni 3-7 Years measures municipal bonds with maturities between 3 and 6.99 year. Citigroup Non-$US Government Bond is a market-cap weighted index, that measures the performance in U.S. dollar terms of major non-U.S. bond markets. The index includes all investment grade fixed-rate bonds with a remaining maturity of one-year or longer. Citigroup Treasury Bill-3 Month represents the monthly return equivalents of yield averages which are not marked to market; this index is an average of the last three three-month Treasury bill issues.

Ryan Labs 3 Yr GIC is an arithmetic mean of the market rates of 3 year GIC contracts. All rates are held for the full term of the contract.

MSCI EAFE is a market-cap weighted index representing 21 of the developed markets outside North America. These 20 countries include 14 European countries and 6 Pacific countries. S&P/Large/Mid Value World x U.S. and S&P Large/Mid Growth World x US Indices measure the performance of the largest 80% of developed county’s available market capitalization, adjusted for float. Three growth and four value variables are used to assign stocks to a specific style index. These include, 5-year historical EPS growth rate, 5-year historical sales per growth rate, 5-year average annual internal growth rate, book to value per share, sales per share price, cash flow per share price and dividend yield. Each style index constitutes 50% of the total float of the S&P Large/Mid World x U.S. Index.

S&P Small Cap World x U.S. represents small cap companies across developed markets. Eligible companies' full market capitalization range from USD 200 ~1,500 million and free float adjusted the market capitalization of the index constituents. MSCI Emerging Markets is a market-cap weighted index representing the major emerging countries in the world. S&P Developed World Property x U.S. measures the investable universe of publicly traded property companies in developed foreign countries. Consumer Price Index is the United States Headline Consumer Price Index, which excludes energy and food. 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.

HFN Fund of Funds – Multi Strategy Average is the equal-weighted average performance of thousands of hedge fund of funds that are classified as multi-strategy, as reported by the managers to the HFN database.

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.

7

Third Quarter 2010 Knowledge College

Market Strength in the Face of Adversity Despite negative economic headlines, declining consumer sentiment and political uncertainty throughout the summer months of 2010, the S&P 500 continued to move higher. This Knowledge College observes recent examples of equity market rallies in the face of adverse news.

High Interest Rates and Slow Growth (1984-85)

In March 1984, consumer sentiment began a consistent decline after hitting an all-time high of 101. Despite persistently high interest rates, slow growth and a bleak economic outlook, the S&P 500 added a cumulative 58% over the next 2 years in what turned out to be the beginning of a long-term equity bull market.

Gulf War and S&L Crisis Aftermath (1990s)

Military conflict (Gulf War) and consequences of the Savings & Loan crisis such as a large federal deficit and a wavering real estate market weighed heavily on market optimism in the early 1990’s.

However, the S&P 500’s acceleration was not interrupted, more than doubling between 1990 and 1996 (108%).

40

50

60

70

80

90

100

110

120

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

Jan-78 Jan-82 Jan-86 Jan-90 Jan-94 Jan-98 Jan-02 Jan-06 Jan-10

S&P 500 (Left scale) Consumer Sentiment (Right scale)

S&P 500 Growth of $1,000 and Consumer Sentiment (1/1978 - 9/2010)

The Year 2000 Problem, also known as “Y2K” (1999)

While worries over Y2K intensified as the 20th century came to a close, the S&P 500 rallied 21% in 1999.

The September 11 Attacks (2001)

During the six months after the 9/11 attacks, the S&P 500 gained 11%. Notably, this gain withstood the Enron collapse (October 2001) which shook investors’

confidence in corporate reporting. Growth Uncertainty (2004-05)

From January 2004 to October 2005, Consumer Sentiment declined significantly (103.4 to 74.2) as the sustainability of the recovery from the 2002 recession was called into question.

During the same time period, the S&P 500 appreciated slightly more than 12%. Current (2010)

Unemployment rates, government debt levels and tax law implications have cast doubt in the near-term economic outlook. When combined with controversy surrounding recent healthcare and financial reform plus the upcoming mid-term elections, the current environment can be viewed as similar to past.

In the course of these headwinds, the S&P 500 jumped over 11% in the third quarter 2010.

Although good economic, political or corporate news is generally embraced with solid stock market performance, negative developments do not always bring significant declines. Maintaining a fully invested diversified portfolio combined with disciplined rebalancing will enable investors to successfully navigate all market environments, optimistic or dire. For more information, visit our website or contact any of the professionals at DiMeo Schneider & Associates, L.L.C.

www.dimeoschneider.com

ACCOUNT RECONCILIATION

BENCHMARK COMPOSITION

TRAILING PERFORMANCE SUMMARY

CALENDAR YEAR PERFORMANCE SUMMARY

CurrentQuarter

YTD 1Year

3Years

5Years

SinceInception

InceptionDate

Historical Account Composite 01/01/2004

Begining Market Value 27,418,308 27,324,359 25,983,527 28,366,995 22,153,648 17,848,787

Net Contributions -284,138 117,413 560,005 121,117 301,074 1,981,273

Gain/Loss 3,088,751 2,781,149 3,679,389 1,734,809 7,768,199 10,392,861

Ending Market Value 30,222,921 30,222,921 30,222,921 30,222,921 30,222,921 30,222,921

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

SinceInception

InceptionDate

Historical Account Composite 11.37 9.87 13.63 1.76 5.88 N/A 6.63 01/01/2004

Target Asset Allocation 10.11 5.91 10.12 -2.47 3.47 N/A 5.00 01/01/2004

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Historical Account Composite 31.50 -26.08 8.07 12.52 9.11 8.88 19.07 N/A N/A N/A

Target Asset Allocation 24.89 -29.09 7.98 14.67 7.25 11.64 25.23 N/A N/A N/A

Allocation Mandate Weight (%)

Jan-2003

Russell 3000 Index 54.00

Barclays Capital Aggregate 27.00

MSCI AC World ex USA 19.00

Concordia University-Nebraska

Endowment

September 30, 2010

Allocation

MarketValue

($)

%

Performance(%)

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007

Fund &Cat Avg

Exp Ratio

Total Plan

Historical Account Composite 30,222,921 100.0 11.4 9.9 13.6 1.8 5.9 N/A 31.5 -26.1 8.1

Target Asset Allocation 10.1 5.9 10.1 -2.5 3.5 N/A 24.9 -29.1 8.0

TIPS

Vanguard Inflation-Protected Secs Adm 3,142,585 10.4 2.6 7.1 9.1 6.7 5.3 N/A 11.0 -2.8 11.7 0.11

Barclays Capital U.S. Treasury: U.S. TIPS 2.5 7.0 8.9 6.9 5.5 7.5 11.4 -2.4 11.6

IM U.S. TIPS (MF) 2.6 6.9 8.7 6.5 5.0 7.0 10.3 -2.4 10.6 0.83

Vanguard Inflation-Protected Secs Adm Rank 52 37 29 39 26 N/A 32 59 7

Broad Domestic Fixed

Loomis Sayles Bond Instl 2,250,961 7.4 7.0 11.3 16.0 6.5 7.8 9.7 37.2 -21.8 8.5 0.64

Barclays Capital Aggregate 2.5 7.9 8.2 7.4 6.2 6.4 5.9 5.2 7.0

IM U.S. Broad Market Core Fixed Income (MF) 3.2 8.5 9.7 7.1 5.8 6.0 13.1 -3.5 5.3 0.92

Loomis Sayles Bond Instl Rank 1 7 1 63 7 1 1 97 2

PIMCO Total Return Instl 853,397 2.8 3.8 9.9 10.9 10.9 8.4 7.9 13.9 4.8 9.1 0.47

Barclays Capital Aggregate 2.5 7.9 8.2 7.4 6.2 6.4 5.9 5.2 7.0

IM U.S. Broad Market Core Fixed Income (MF) 3.2 8.5 9.7 7.1 5.8 6.0 13.1 -3.5 5.3 0.92

PIMCO Total Return Instl Rank 18 24 31 2 2 1 45 13 1

High Yield Fixed

JPMorgan High Yield Select 2,141,899 7.1 6.5 10.4 17.3 7.8 8.1 7.8 48.5 -22.5 2.2 0.91

Citigroup High-Yield Market 6.3 10.7 17.5 7.9 7.8 7.8 55.2 -25.9 1.8

IM U.S. High Yield Bonds (MF) 6.3 10.0 16.0 5.7 6.2 6.3 46.3 -25.3 1.7 1.21

JPMorgan High Yield Select Rank 37 36 27 11 7 6 39 28 36

International Fixed Hedged

PIMCO Foreign Bond (USD-Hedged) I 640,362 2.1 3.2 11.1 13.1 9.7 6.9 7.0 19.0 -2.4 4.0 0.52

Citigroup Non-U.S. World Government Bond Hedged 1.9 4.6 4.7 5.6 4.8 5.2 2.4 8.0 4.9

IM International Fixed Income (MF) 10.5 7.6 6.5 7.1 6.2 7.0 8.8 1.9 9.2 1.08

PIMCO Foreign Bond (USD-Hedged) I Rank 92 18 12 19 32 52 9 81 82

Large Cap

Dodge & Cox Stock 1,290,631 4.3 10.9 2.1 6.7 -10.2 -1.5 5.4 31.3 -43.3 0.1 0.52

Russell 1000 Value Index 10.1 4.5 8.9 -9.4 -0.5 2.6 19.7 -36.8 -0.2

IM U.S. Large Cap Value Equity (MF) 10.2 2.0 6.8 -9.0 -0.6 2.1 23.4 -37.0 1.6 1.25

Dodge & Cox Stock Rank 25 46 52 74 70 4 14 91 62

Concordia University-NebraskaEndowment

As of September 30, 2010


As of September 30, 2010Allocation

MarketValue

($)

%

Performance(%)

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007

Fund &Cat Avg

Exp Ratio

iShares S&P 500 Index 1,850,507 6.1 11.2 3.8 10.1 -7.2 0.6 -0.5 26.4 -37.0 5.4 0.09

S&P 500 11.3 3.9 10.2 -7.2 0.6 -0.4 26.5 -37.0 5.5

IM S&P 500 Index (MF) Median 11.2 3.5 9.7 -7.5 0.2 -0.8 26.1 -37.3 5.0 0.63

iShares S&P 500 Index Rank 25 10 11 9 6 8 17 13 10

iShares Russell 1000 Growth Index 1,318,946 4.4 12.9 4.2 12.5 -4.5 1.9 -3.6 36.9 -38.5 11.6 0.20

Russell 1000 Growth Index 13.0 4.4 12.7 -4.4 2.1 -3.4 37.2 -38.4 11.8

IM U.S. Large Cap Growth Equity (MF) 12.3 3.0 10.2 -5.6 1.1 -2.7 34.8 -40.2 14.0 1.33

iShares Russell 1000 Growth Index Rank 42 30 25 33 33 67 42 37 70

Mid Cap

iShares S&P MidCap 400 Index 746,776 2.5 13.1 11.4 17.5 -1.7 3.6 5.3 37.2 -36.2 7.8 0.21

S&P MidCap 400 13.1 11.6 17.8 -1.7 3.8 5.4 37.4 -36.2 8.0

IM U.S. Mid Cap Core Equity (MF) 12.3 8.9 14.4 -4.4 2.1 3.4 34.8 -38.7 6.8 1.32

iShares S&P MidCap 400 Index Rank 25 8 16 20 20 21 33 24 39

Small Cap

DFA US Small Cap Value I 697,378 2.3 12.5 10.2 13.3 -5.3 0.5 9.0 33.6 -36.8 -10.7 0.52

Russell 2000 Value Index 9.7 7.9 11.8 -5.0 0.7 7.7 20.6 -28.9 -9.8

IM U.S. Small Cap Value Equity (MF) 10.0 8.6 13.3 -3.7 1.6 8.2 30.3 -33.0 -6.0 1.53

DFA US Small Cap Value I Rank 12 26 50 69 68 32 37 70 79

Conestoga Small Cap 779,605 2.6 11.3 8.1 13.9 -0.8 3.5 N/A 29.1 -27.7 6.4 1.10

Russell 2000 Growth Index 12.8 10.2 14.8 -3.7 2.3 -0.1 34.5 -38.5 7.0

IM U.S. Small Cap Growth Equity (MF) 12.3 9.3 14.9 -5.0 1.5 0.4 35.3 -41.8 8.7 1.55

Conestoga Small Cap Rank 68 64 59 8 20 N/A 78 1 61

International Equity

American Funds EuroPacific Gr F-1 3,181,526 10.5 16.8 3.5 7.0 -4.6 5.8 N/A 39.1 -40.5 18.9 0.85

MSCI EAFE Index 16.5 1.5 3.7 -9.1 2.4 3.0 32.5 -43.1 11.6

IM International Large Cap Core Equity (MF) 17.2 1.4 3.5 -9.8 1.7 2.0 29.1 -43.5 11.4 1.36

American Funds EuroPacific Gr F-1 Rank 59 12 12 2 6 N/A 11 15 6

DFA Intl Small Cap Value I 886,185 2.9 16.3 4.9 2.9 -7.6 3.6 12.0 39.5 -41.7 2.9 0.70

MSCI EAFE Small Cap Value 16.5 8.2 5.0 -6.0 4.0 10.7 50.0 -45.5 1.0

IM International SMID Cap Value Equity (MF) 16.4 11.3 15.5 -5.4 N/A N/A 60.7 -46.2 6.5 1.38

DFA Intl Small Cap Value I Rank 57 87 87 91 N/A N/A 64 16 67


As of September 30, 2010Allocation

MarketValue

($)

%

Performance(%)

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007

Fund &Cat Avg

Exp Ratio

Emerging Markets

Aberdeen Emerging Markets Instl Fd Instl 2,540,396 8.4 20.0 20.5 28.7 9.2 N/A N/A 76.6 -40.4 N/A 0.95

MSCI Emerging Markets Index 18.2 11.0 20.5 -1.2 13.1 13.8 79.0 -53.2 39.8

IM Emerging Markets Equity (MF) 18.8 10.7 19.0 -3.2 10.9 13.0 73.7 -54.9 36.4 1.63

Aberdeen Emerging Markets Instl Fd Instl Rank 26 4 8 1 N/A N/A 36 2 N/A

Real Estate Domestic

Nuveen Real Estate Secs I 1,562,844 5.2 13.8 21.0 32.2 -3.2 4.9 12.1 30.5 -34.8 -15.2 1.04

FTSE NAREIT Equity REIT Index 12.8 19.1 30.3 -6.1 1.9 10.4 28.0 -37.7 -15.7

IM Real Estate Sector (MF) 12.9 18.6 29.6 -6.3 1.7 9.5 29.0 -38.8 -17.2 1.41

Nuveen Real Estate Secs I Rank 10 9 10 10 2 2 28 12 16

Real Estate International

Cohen & Steers International Realty I 1,658,064 5.5 22.7 8.8 10.0 -10.9 2.6 N/A 36.0 -47.3 -4.3 1.26

S&P Developed Ex-U.S. Property 21.7 10.7 12.3 -11.3 2.9 9.4 42.8 -51.8 -1.6

Commodities

PIMCO Commodity Real Ret Strat Instl 3,170,573 10.5 14.6 7.5 20.0 -2.3 -0.4 N/A 39.9 -43.3 23.8 0.74

Dow Jones-UBS Commodity Index 11.6 0.9 10.0 -6.8 -2.3 5.2 18.9 -35.6 16.2

MLP

Kayne Anderson MLP Invst Co 726,885 2.4 2.1 10.7 34.2 3.3 7.0 N/A 69.8 -38.1 -5.7

Alerian MLP Index 11.2 24.3 45.0 12.9 13.0 18.1 76.4 -36.8 12.4

Tortoise Energy Infrastructure Corp. 763,306 2.5 7.6 16.0 37.1 8.6 9.3 N/A 99.4 -44.5 1.7

Alerian MLP Index 11.2 24.3 45.0 12.9 13.0 18.1 76.4 -36.8 12.4

Hedge Funds

Grosvenor Inst'l Partners, L.P. - 0.0 2.7 3.2 6.0 -1.6 2.7 5.0 13.9 -20.9 10.7

HFRI Fund of Funds Composite Index 3.3 2.0 3.5 -3.0 2.1 3.7 11.5 -21.4 10.3

Cash/Equivalents

Cash & Equivalents 20,094 0.1

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

SinceInception

InceptionDate

Historical Account Composite 11.37 9.87 13.63 1.76 5.88 N/A 7.06 12/31/2003

Target Asset Allocation 10.11 5.91 10.12 -2.47 3.47 N/A 5.57 12/31/2003


Endowment

September 30, 2010

5 YEARS3 YEARS

10 YEARS7 YEARS

Historical Account Composite Target Asset Allocation

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

13.7 13.8 13.9 14.0

Risk (Standard Deviation %)


-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

16.8 16.9 17.0 17.1 17.2 17.3


No data found.


6.0

6.2

6.4

6.6

6.8

7.0

7.2

7.4

7.6

10.0 12.0 14.0 16.0 18.0 20.0 22.0



Endowment

September 30, 2010

Objective:

Manager: Tenure (Years):

Portfolio Characteristics: F.I. Style:

Assets (Billions): 31.2$ Avg. Duration (yrs): 3.9 S I L

Total Holdings: 29 Turnover Ratio: 14% X H

Avg. Credit Quality: AAA 12 Month Yield: 2.5% M

L

Distribution by Maturity

TIPS Commentary:

Fund Commentary:

J. Rondini, Senior Investment Analyst, DiMeo Schneider & Associates, L.L.C. 10/10

Fund Facts is a product of DiMeo Schneider & Associates, L.L.C. Information is obtained from Morningstar, Inc. and various sources which are deemed, but not guaranteed to be accurate. See prospectus for details. Source of style box: Morningstar, Inc.

Vanguard Inflation-Protected Securities

10.2Kenneth Volpert

S=Short, I=Intermediate, L=Long

H=High , M=Med, L=Low

TIPS gained despite disinflationary pressures as expectations of slower growth and additional quantitative easing by the Federal Reserve helped drive real yields lower. Performance was volatile during the quarter. Accumulating evidence of decelerating economic growth led investors to shun TIPS early in the quarter in favor of nominal Treasuries. 10-year breakeven inflation rates fell to a low of 1.5% in mid-August, before Chairman Bernanke opened the door for another round of quantitative easing. In September, once the prospective quantitative easing became a high probability, 10-year breakeven levels backed up to 1.8% by quarter end. Rising commodity prices have become another important dynamic supporting TIPS.

The fund seeks to provide inflation protection and income consistent with investment in inflation-indexed securities. The fund 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-weighted average maturity of 7 to 10 years. Up to 20% of assets may be invested in non-inflation-indexed securities. The fund will make such investments primarily when inflation-indexed bonds are less attractive. The fund's non-inflation-indexed holdings may include the following: corporate debt obligations; U.S. government and agency bonds; cash investments; mortgage dollar rolls; restricted or illiquid securities; and, futures, options, and other derivatives. The fund may invest up to 20% of its total assets in bond futures contracts, options, credit swaps, interest rate swaps, and other types of derivatives. It may invest up to 15% of assets in restricted or illiquid securities.

0.3

37.3

29.5

29.7

3.2

Under 1 Year

1-5 Years

5-10 Years

10-20 Years

20-30 Years

√ During the quarter, as persistent economic concerns were met with speculation that the Federal Reserve Board would again institute its quantitative easing program, break-even rates narrowed, leading TIPS to underperform nominal Treasuries. The yield of 10-year TIPS fell during the quarter, although 10-year nominal yields fell more.

FUND INFO QUARTERLY COMMENTS - ASSET CLASS

HISTORICAL PERFORMANCE

FUND OBJECTIVE

QUARTERLY COMMENTS - FUND

No data found.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 Hollyer/Volpert

Total Assets $12,760 Million

Total Assets Date 09/30/2011

Gross Expense 0.11%

Net Expense 0.11%

Turnover 29%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Vanguard Infl-Protected Secs Adm 2.59 7.07 9.15 6.65 5.34 N/A 10.96 -2.78 11.69 0.52 N/A N/A N/A N/A N/A N/A

Barclays Cap US Treasury: US TIPS 2.48 7.00 8.89 6.91 5.50 7.50 11.41 -2.35 11.63 0.49 2.84 8.46 8.39 16.56 7.89 13.15

IM U.S. TIPS (MF) 2.60 6.85 8.75 6.47 4.97 7.04 10.29 -2.37 10.57 -0.11 2.06 7.58 7.61 16.06 7.62 12.31

Vanguard Infl-Protected Secs Adm Rank 52 37 29 39 26 N/A 32 59 7 16 N/A N/A N/A N/A N/A N/A

The fund seeks to provide inflation protection and income consistent w ith 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-w eighted maturity of seven to 10 years. Up to 20% of the assets may be invested in non-inflation-indexed securities, including

investment grade corporate debt and U.S. government and agency bonds. At a minimum, all bonds purchased w ill be rated “investment grade.”

Vanguard Infl-Protected Secs Adm

September 30, 2010

PEER GROUP ANALYSIS 3 YEAR ROLLING PEER GROUP PERCENTILE RANKING

RELATIVE PERFORMANCE TO INDEXRISK AND RETURN (10/01/05-09/30/10)

Re

turn

Pe

rce

ntil

e R

an

k

CurrentQuarter

1Year

3Years

5Years

Vanguard Infl-Protected Secs Adm 2.6 (52) 9.1 (29) 6.7 (39) 5.3 (26)

Barclays Cap US Treasury: US TIPS 2.5 (71) 8.9 (42) 6.9 (28) 5.5 (19)

5th Percentile 3.7 10.9 8.0 6.0

1st Quartile 2.8 9.2 7.1 5.3

Median 2.6 8.7 6.5 5.0

3rd Quartile 2.4 8.1 5.5 4.2

95th Percentile 1.6 5.6 -1.5 -0.2


September 30, 2010

PORTFOLIO CHARACTERISTICSRISK CHARACTERISTICS

SECTOR EXPOSURE (%)CREDIT QUALITY DISTRIBUTION (%)

1Year

3Years

5Years

10Years

Return 9.15 6.65 5.34 N/A

Standard Deviation 4.86 8.77 7.27 N/A

vs. Barclays Cap US Treasury: US TIPS

Tracking Error 0.43 0.77 0.61 N/A

Alpha 0.11 -0.25 -0.14 N/A

Beta 1.02 1.00 1.00 N/A

R-Squared 0.99 0.99 0.99 N/A

Consistency 41.67 47.22 46.67 N/A

vs. 90 Day U.S. Treasury Bill

Sharpe Ratio 1.81 0.65 0.40 N/A

No data found.

No data found.No data found.


September 30, 2010

Objective:




Cash: 6.0% Avg. Maturity (yrs): 10.0 H

Other (Non-Bond): 12.2% Turnover Ratio: 39% M

Total Holdings: 683 Avg. Credit Quality: BB L

High Yield: 29.9% 12 Month Yield: 5.7%

Loomis Sayles Bond Instl

9.9Daniel Fuss

S=Short, I=Intermediate, L=Long

H=High , M=Med, L=Low

Credit Quality Analysis Sector Analysis

The fund invests primarily in investment grade, fixed income securities. The flexible "go anywhere" style of the portfolio allows the managers to seek out what they believe to be the best values in the fixed income markets. Management may invest up to 35% of assets in lower-rated fixed income securities, up to 20% of assets in preferred stocks, and up to 20% of assets in foreign securities, including emerging markets.

24.5

4.8

12.1

25.1

11.4

14.0

4.5

3.8

76.4

3.7

9.3

7.6

0.3

0.0

0.0

2.8

AAA & Government

AA

A

BBB

BB

B

Below B

NR/NA BCAB

Fund

25.8

19.1

23.7

9.3

16.6

3.2

0.5

0.4

1.2

0.3

0.1

0.0

Investment Grade Credit

Non-US Dollar

High Yield Credit

Convertibles

Canadian Dollar

Preferred/Equity

Bank Loans

Muni

Other

ABS

Emerging Mkt Debt

US Treasury

Fixed Income Market Commentary:


T. Sweet, Senior Investment Analyst, DiMeo Schneider & Associates, L.L.C. 10/10

Fund Commentary:

Yields continued to fall sharply through the third quarter, driven by concerns over the slowing economic growth, a consensus among market participants that the Fed Fund’s rate is anchored through 2011, and the prospects for another round of quantitative easing. The yield curve continued to flatten. Interestingly, the 2-year Treasury yield ended the quarter at 0.42%, a full 20 bps below the low in yields that followed the collapse of Lehman in 2008. TIPS gained despite disinflationary pressures as expectations of slower growth and additional quantitative easing by the Federal Reserve helped drive real yields lower.10-year breakevens ended September at 1.%. Agencies gained on steady demand and continued net negative supply to support the market. Corporate bonds, both investment grade and high yield, posted gains for the quarter. As corporations continue to show improving fundamentals, lower leverage and implement cost-cutting measures, investors appear to find the additional yield offered by corporate debt relatively attractive despite the credit risk. Agency MBS lagged on a combination of unappealing valuations and low demand as lower rates and ongoing rumors of mass refinancing initiatives lead to renewed prepayment and supply fears. CMBS and ABS extended their gains on limited new issuance and stabilized fundamentals.

The fund invests primarily in investment grade, fixed income securities. The flexible "go anywhere" style of the portfolio allows the managers to seek out what they believe to be the best values in the fixed income markets. Management may invest up to 35% of assets in lower-rated fixed income securities, up to 20% of assets in preferred stocks, and up to 20% of assets in foreign securities, including emerging markets.

24.5

4.8

12.1

25.1

11.4

14.0

4.5

3.8

76.4

3.7

9.3

7.6

0.3

0.0

0.0

2.8

AAA & Government

AA

A

BBB

BB

B

Below B

NR/NA BCAB

Fund

√ Growth expectations for many emerging markets bolstered certain commodity currencies, which translated into sizable contributions from the fund's foreign-currency-denominated holdings, including the Canadian dollar, New Zealand dollar, Australian dollar and Norwegian krone.

√ A slightly longer duration stance, concentrated primarily in long-term investment grade credits, proved beneficial, as yields fell during the quarter.

√ Within high yield, the fund’s strongest returns came from the industrials sector, particularly the consumer cyclical, consumer non-cyclical and communication areas. Financials were also positive.

√ The fund's convertible bonds mirrored the swings in the equity markets and contributed positively to performance.√ With investors favoring riskier assets in their search for yield, the fund’s underweight to US Treasuries proved favorable to relative

performance.√ On the downside, high yield utilities struggled amid depressed extended growth forecasts and languishing energy prices, particularly

for producers dependant on natural gas prices.

25.8

19.1

23.7

9.3

16.6

3.2

0.5

0.4

1.2

0.3

0.1

0.0

Investment Grade Credit

Non-US Dollar

High Yield Credit

Convertibles

Canadian Dollar

Preferred/Equity

Bank Loans

Muni

Other

ABS

Emerging Mkt Debt

US Treasury



FUND OBJECTIVE


No data found.Product Name Loomis Sayles:Bd;Inst (LSBDX)

Fund Family Loomis Sayles & Company LP

Ticker LSBDX

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

Benchmark Barclays Capital Aggregate


Portfolio Manager Team Managed



Gross Expense 0.64%

Net Expense 0.64%

Turnover 27%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Loomis Sayles Bond Instl 6.97 11.25 16.00 6.49 7.75 9.70 37.19 -21.82 8.53 11.29 4.28 11.30 29.18 13.34 2.66 4.36

Barclays Capital Aggregate 2.48 7.94 8.16 7.42 6.20 6.41 5.93 5.24 6.97 4.34 2.43 4.34 4.11 10.27 8.43 11.63

IM U.S. Broad Market Core Fixed Income (MF) 3.20 8.53 9.73 7.13 5.79 5.97 13.09 -3.46 5.31 3.93 1.83 4.02 4.34 8.56 7.58 10.34

Loomis Sayles Bond Instl Rank 1 7 1 63 7 1 1 97 2 1 2 1 1 1 100 99

This fund is managed to take full advantage of the 35% limit on below investment-grade bonds, w hich tends to generate a higher risk/rew ard profile. In addition, management is w illing 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 w ith counter cyclical elements. In doing so, it w ill

utilize convertible bonds, municipal bonds, preferred stocks and foreign corporate and government bonds, in addition to the domestic corporate bonds w hich make up the majority of the fund.


September 30, 2010



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CurrentQuarter

1Year

3Years

5Years

Loomis Sayles Bond Instl 7.0 (1) 16.0 (1) 6.5 (63) 7.8 (7)

Barclays Capital Aggregate 2.5 (86) 8.2 (83) 7.4 (44) 6.2 (35)

5th Percentile 4.6 14.0 10.2 7.9

1st Quartile 3.6 11.4 8.1 6.4

Median 3.2 9.7 7.1 5.8

3rd Quartile 2.7 8.5 5.5 4.8

95th Percentile 2.2 7.1 1.2 1.9


September 30, 2010



1Year

3Years

5Years

10Years

Return 16.00 6.49 7.75 9.70

Standard Deviation 6.10 14.66 11.65 9.63

vs. Barclays Capital Aggregate

Tracking Error 7.17 12.93 10.24 8.45

Alpha 19.14 -6.44 -2.22 1.96

Beta -0.32 1.94 1.71 1.24

R-Squared 0.02 0.29 0.28 0.24

Consistency 66.67 55.56 61.67 63.33


Sharpe Ratio 2.46 0.43 0.48 0.75

Portfolio Benchmark

Portfolio Duration N/A 4.7

Avg. Maturity N/A 6.6

Current Yield N/A 4.6



September 30, 2010

Objective:




Total Holdings: 12637 Turnover Ratio: 402% X H

Avg. Credit Quality: A 12 Month Yield: 3.2% M

L

23.4William Gross

Credit Quality Analysis Sector Analysis

S=Short, I=Intermediate, L=LongH=High , M=Med, L=Low

PIMCO Total Return

Management adds value by combining top-down and bottom-up investing strategies. Using the top down approach, management develops an outlook for interest rates over a 3- to 5-year time horizon and determines how that outlook applies to the market over the upcoming 3- to 12-month period. This analysis is the basis for positioning the portfolio with regard to exposure to interest rates, duration, and volatility and is critical in determining yield curve positioning and sector rotation. The bottom-up approach involves a credit analysis of specific securities to determine if they will add value to the portfolio while still meeting acceptable levels of portfolio risk. PIMCO may at times use futures to replicate bond positions.

The fund's turnover ratio tends to run high, averaging 300%. However, this high figure overstates real or economic turnover because it includes such transactions as mortgage dollar rolls and the rolling of financial futures contracts. Portfolio turnover is calculated by taking the securities bought and sold during the period divided by the average portfolio value during the period. In general, the average annual turnover for the fund would be in the 75% range if the derivatives trading were excluded.

9 0

13.0

8.0

3.0

2.0

1.0

0.0

3.7

9.3

7.6

0.3

0.0

0.0

2.8

AA

A

BBB

BB

B

Below B

NR/NA

BCAB

Fund

17.0

12.0

13.0

28.0

33.0

18.0

1.0

0.0

37.0

44.0

Corporate Bonds

Emerging Markets

Other

Mortgage-Backed Securities

Government

BCAB

Fund

Fixed Income Market Commentary

T. Sweet, Sr. Investment Analyst, DiMeo Schneider & Associates, L.L.C. 10/10


Fund Commentary:

Management adds value by combining top-down and bottom-up investing strategies. Using the top down approach, management develops an outlook for interest rates over a 3- to 5-year time horizon and determines how that outlook applies to the market over the upcoming 3- to 12-month period. This analysis is the basis for positioning the portfolio with regard to exposure to interest rates, duration, and volatility and is critical in determining yield curve positioning and sector rotation. The bottom-up approach involves a credit analysis of specific securities to determine if they will add value to the portfolio while still meeting acceptable levels of portfolio risk. PIMCO may at times use futures to replicate bond positions.

The fund's turnover ratio tends to run high, averaging 300%. However, this high figure overstates real or economic turnover because it includes such transactions as mortgage dollar rolls and the rolling of financial futures contracts. Portfolio turnover is calculated by taking the securities bought and sold during the period divided by the average portfolio value during the period. In general, the average annual turnover for the fund would be in the 75% range if the derivatives trading were excluded.

64.0

9.0

13.0

8.0

3.0

2.0

1.0

0.0

76.4

3.7

9.3

7.6

0.3

0.0

0.0

2.8

AAA & Government

AA

A

BBB

BB

B

Below B

NR/NA

BCAB

Fund

Yields continued to fall sharply through the third quarter, driven by concerns over the slowing economic growth, a consensus among market participants that the Fed Fund’s rate is anchored through 2011, and the prospects for another round of quantitative easing. The yield curve continuedflatten. Interestingly, the 2-year Treasury yield ended the quarter at 0.42%, a full 20 bps below the low in yields that followed the collapse of Lehman i2008. TIPS gained despite disinflationary pressures as expectations of slower growth and additional quantitative easing by the Federal Reserve helpedrive real yields lower.10-year breakevens ended September at 1.%. Agencies gained on steady demand and continued net negative supply to suppothe market. Corporate bonds, both investment grade and high yield, posted gains for the quarter. As corporations continue to show improving fundamentals, lower leverage and implement cost-cutting measures, investors appear to find the additional yield offered by corporate debt relatively attractive despite the credit risk. Agency MBS lagged on a combination of unappealing valuations and low demand as lower rates and ongoing rumorsof mass refinancing initiatives lead to renewed prepayment and supply fears. CMBS and ABS extended their gains on limited new issuance and stabilized fundamentals.

-3.0

17.0

12.0

13.0

28.0

33.0

0.0

18.0

1.0

0.0

37.0

44.0

Net Cash & Equiv.

Corporate Bonds

Emerging Markets

Other

Mortgage-Backed Securities

Government

BCAB

Fund

√ A longer duration stance, as well as modest exposure to local rates in Brazil, helped returns as interest rates declined in most markets.√ The fund's yield curve steepening position rallied during the quarter.√ The fund's underweight position to Agency mortgages helped results as these securities lagged Treasuries. Strong issue selection further

aided returns. √ Modest exposure to a basket of emerging market currencies aided returns as low U.S. rates pressured the dollar.√ A continued bias towards financial credits helped returns as these securities rallied as the long-awaited Basel III accord provided banks with a

longer implementation timetable to comply with new capital requirements.√ On the downside, an underweight position in CMBS held back returns as this area rallied strongly during the period on positive technicals

and stable fundamentals.



FUND OBJECTIVE


No data found.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 Capital Aggregate


Portfolio Manager William H. Gross



Gross Expense 0.47%

Net Expense 0.47%

Turnover 430%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

PIMCO Total Return Instl 3.82 9.87 10.93 10.87 8.37 7.94 13.87 4.82 9.08 3.99 2.88 5.14 5.57 10.21 9.49 12.13

Barclays Capital Aggregate 2.48 7.94 8.16 7.42 6.20 6.41 5.93 5.24 6.97 4.34 2.43 4.34 4.11 10.27 8.43 11.63

IM U.S. Broad Market Core Fixed Income (MF) 3.20 8.53 9.73 7.13 5.79 5.97 13.09 -3.46 5.31 3.93 1.83 4.02 4.34 8.56 7.58 10.34

PIMCO Total Return Instl Rank 18 24 31 2 2 1 45 13 1 46 4 12 26 9 8 6

PIMCO seeks current income consistent w ith preservation of capital. The process begins w ith a top-dow n review of the global economy and interest rates. Management looks at the most likely near term

scenario w ith regard to interest rate volatility, yield curve shape, and credit trends. Once the larger trends are established, they focus on selecting high-quality f ixed income securities through the use of

proprietary research.

PIMCO Total Return Instl

September 30, 2010



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1Year

3Years

5Years

PIMCO Total Return Instl 3.8 (18) 10.9 (31) 10.9 (2) 8.4 (2)

Barclays Capital Aggregate 2.5 (86) 8.2 (83) 7.4 (44) 6.2 (35)

5th Percentile 4.6 14.0 10.2 7.9

1st Quartile 3.6 11.4 8.1 6.4

Median 3.2 9.7 7.1 5.8

3rd Quartile 2.7 8.5 5.5 4.8

95th Percentile 2.2 7.1 1.2 1.9


September 30, 2010



1Year

3Years

5Years

10Years

Return 10.93 10.87 8.37 7.94


vs. Barclays Capital Aggregate

Tracking Error 1.46 2.59 2.17 1.71

Alpha 4.56 3.72 2.11 1.39

Beta 0.76 0.94 0.99 1.01

R-Squared 0.75 0.69 0.73 0.83

Consistency 83.33 77.78 66.67 64.17


Sharpe Ratio 4.03 2.01 1.31 1.25

Portfolio Benchmark

Portfolio Duration N/A 4.7

Avg. Maturity N/A 6.6

Current Yield N/A 4.6



September 30, 2010

Objective:




Cash: 4.4% Avg. Maturity (yrs): 7.3 H

Other (Non-Bond): 5.9% Turnover Ratio: 45% M

Total Holdings: 917 Assets in Top 10: 10% x L

Avg. Credit Quality: B 12 Month Yield: 8.1%

Credit Quality Analysis Top 5 Sectors

JP Morgan High Yield Bond

25.3% Consumer Disc.

10.5% Industrials

10.3% Materials

14.2% Financials

9.0James Shanahan


9.8% Energy

JP Morgan utilizes a bottom-up, fundamental, value-oriented approach to identify the critical factors of each investment. The approach includes analysis of the issuer's business prospectus, management, capital requirements, capital structure, enterprise value, and security structure and covenants. The credit analysts, who specialize by industry and focus solely on high yield, have significant influence on buy/sell decisions, industry sector weighting, and the risk profile within an industry sector. They keep a performance rating on each industry sector they follow which determines relative sector weightings in the portfolio. Relative positions within each industry in terms of credit quality also result from the analyst sector ratings. Management may shift from weaker credits to stronger credits and from cyclical sectors to non-cyclical sectors if they believe the economic environment will weaken and vice versa if they believe the economy will strengthen.

0.0

0.0

0.6

3.7

22.1

45.7

19.7

8.3

AAA & Government

AA

A

BBB

BB

B

Below B

NR/NA

High Yield Market Commentary:


Fund Commentary:


High yield bonds posted strong gains during the third quarter. Much of the performance came in September, as the market participated in the rally for risk assets following renewed talk of quantitative easing in the U.S. As corporations continue to show improving fundamentals, investors appear to find the additional yield offered by corporate debt relatively attractive despite the credit risk. With the health of balance sheets seeing noticeable improvement, defaults continued to decelerate. In fact, speculative grade defaults ended September at 4%, a significant drop from their November 2009 peak of 14%. New issuance has been strong. With $203 billion in issuance in the first nine months of the year, the market already topped all of 2009. Refinancing accounted for 69% of the new issuance. In contrast to earlier quarters, higher-quality issues outperformed lower-quality driven by caution on the overall economy.

JP Morgan utilizes a bottom-up, fundamental, value-oriented approach to identify the critical factors of each investment. The approach includes analysis of the issuer's business prospectus, management, capital requirements, capital structure, enterprise value, and security structure and covenants. The credit analysts, who specialize by industry and focus solely on high yield, have significant influence on buy/sell decisions, industry sector weighting, and the risk profile within an industry sector. They keep a performance rating on each industry sector they follow which determines relative sector weightings in the portfolio. Relative positions within each industry in terms of credit quality also result from the analyst sector ratings. Management may shift from weaker credits to stronger credits and from cyclical sectors to non-cyclical sectors if they believe the economic environment will weaken and vice versa if they believe the economy will strengthen.

0.0

0.0

0.6

3.7

22.1

45.7

19.7

8.3

AAA & Government

AA

A

BBB

BB

B

Below B

NR/NA

√ Weak security selection in the capital goods, communication finance and technology sectors detracted from performance.√ At the industry level, overweight position in basic materials, communication, consumer cyclical and transportation weighed on returns.√ On the positive side, security selection in the basic industries, consumer cyclical, energy and utilities contributed to performance in the quarter.√ Overweight positions in communications and technology helped returns along with an underweight in capital goods and utilities.√ Management feels that while the market remains cautious towards risky assets, at current yield levels and projected default rates, there are

opportunities to selectively add to cyclical names as well as higher-quality names in the BB space.



FUND OBJECTIVE


No data found.Product Name JPMorgan:High Yield;Sel (OHYFX)

Fund Family JPMorgan Funds

Ticker OHYFX

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

Benchmark Citigroup High-Yield Market


Portfolio Manager Morgan/Gibson/Shanahan



Gross Expense 1.08%

Net Expense 0.91%

Turnover 45%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

JPMorgan High Yield Select 6.52 10.44 17.27 7.76 8.07 7.81 48.45 -22.54 2.18 12.80 3.04 11.31 26.10 -1.09 5.35 -3.53

Citigroup High-Yield Market 6.34 10.72 17.50 7.92 7.80 7.76 55.23 -25.91 1.83 11.85 2.07 10.80 30.62 -1.52 5.42 -5.67

IM U.S. High Yield Bonds (MF) 6.28 10.02 15.97 5.66 6.18 6.29 46.28 -25.29 1.72 9.75 2.71 9.72 23.97 -0.49 3.27 -7.03

JPMorgan High Yield Select Rank 37 36 27 11 7 6 39 28 36 6 41 18 35 57 28 26

The fund utilizes a bottom-up, fundamental, value-oriented approach to analyze the issuer's business prospectus, management, capital requirements, capital structure, enterprise value, and security

structure and covenants. Credit analysts focusing solely on high yield have signif icant influence on buy/sell decisions, industry w eighting, and risk profile w ithin an industry. The analysts keep a

performance rating on each industry they follow , w hich determines relative w eightings in the portfolio. Relative positions w ithin each industry in terms of credit quality also result from analyst ratings.

Management may shift from w eaker to stronger credits and from cyclical to non-cyclical sectors if they believe the economic environment w ill w eaken and vice versa if they believe the economy w ill

strengthen.

JPMorgan High Yield Select

September 30, 2010



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3Years

5Years

JPMorgan High Yield Select 6.5 (37) 17.3 (27) 7.8 (11) 8.1 (7)

Citigroup High-Yield Market 6.3 (48) 17.5 (23) 7.9 (10) 7.8 (9)

5th Percentile 7.9 20.7 8.4 8.3

1st Quartile 6.7 17.3 6.8 6.9

Median 6.3 16.0 5.7 6.2

3rd Quartile 5.6 14.0 4.1 5.2

95th Percentile 3.1 8.1 0.9 2.4


September 30, 2010



1Year

3Years

5Years

10Years

Return 17.27 7.76 8.07 7.81


vs. Citigroup High-Yield Market

Tracking Error 0.87 4.91 3.87 3.66

Alpha -1.68 1.39 1.81 1.82

Beta 1.09 0.77 0.78 0.75

R-Squared 0.99 0.95 0.95 0.94

Consistency 66.67 55.56 56.67 51.67


Sharpe Ratio 2.32 0.54 0.54 0.59

No data found.



September 30, 2010

Objective:




Avg. Credit Quality: BBB Turnover Ratio: 411% X H

Total Holdings: 778 12 Month Yield: 2.2% M

L

Credit Quality Analysis Top Five Countries

PIMCO Foreign Bond

2.6Scott Mather

Canada 6%

U.S.


7%

Germany 36%

Japan 26%

U.K. 13%

Fund management employs a conservative strategy by primarily investing in high quality debt from developed countries and hedging at least 75% of its foreign currency exposure. The top-down investment process begins with PIMCO’s annual secular forum at which the firm develops a 3- to 5-year outlook for the global economy and interest rates. This helps set the basic portfolio parameters, including duration, yield-curve positioning, sector weightings, credit quality breakdown and finally, individual issue selection. The Fund’s top-down strategy begins with a country bond allocation model that helps determine which countries have the best risk-adjusted yield. Currency allocations are determined according to short-term yields, market trends, technical factors and fundamental analysis focused on measures of relative purchasing power. The bottom-up strategy of the Fund includes sector selection and credit research, which stresses fundamental and in-depth analysis of all holdings. The Fund may at times use futures to replicate bond positions.

The fund's turnover ratio tends to run high. However, this high figure overstates real or economic turnover because it includes such transactions as mortgage dollar rolls and the rolling of financial futures contracts. Portfolio turnover is calculated by taking the securities bought and sold during the period divided by the average portfolio value during the period. In general, the average annual turnover for the fund would be in the 75% range if the derivatives trading were excluded.

0.0

0.0

3.0

2.0

3.0

0.0

A

BBB

BB

B

Below B

NR/NA

Foreign Bond Market Commentary:



Fund Commentary:

The unhedged U.S. investor in sovereign debt enjoyed solid gains in the quarter amid lower yields and a declining U.S. dollar. In Germany, the U.K. and Japan, government bond yields fell across the curve as investors gravitated towards slow growth and low inflation expectations. European economies continued to exhibit divergent behaviors. The German economy is displaying strong growth momentum, while Spain’s debt was downgraded from AAA due to the nation’s weak economic outlook. Ireland continues to be victimized by the global debt crisis, struggling to save its banking system. China continued to diversify its currency reserves, directing proceeds towards Japanese currency, which was a major driver behind the yen’s appreciation. The result was a weakened export industry prompting the Bank of Japan to conduct its first massive currency intervention since 2004. Emerging market debt posted solid gains as economic data was supportive of continued global growth. Concerns China would aggressively restrict growth proved unfounded, supporting emerging market valuations, as did investor inflows.

Fund management employs a conservative strategy by primarily investing in high quality debt from developed countries and hedging at least 75% of its foreign currency exposure. The top-down investment process begins with PIMCO’s annual secular forum at which the firm develops a 3- to 5-year outlook for the global economy and interest rates. This helps set the basic portfolio parameters, including duration, yield-curve positioning, sector weightings, credit quality breakdown and finally, individual issue selection. The Fund’s top-down strategy begins with a country bond allocation model that helps determine which countries have the best risk-adjusted yield. Currency allocations are determined according to short-term yields, market trends, technical factors and fundamental analysis focused on measures of relative purchasing power. The bottom-up strategy of the Fund includes sector selection and credit research, which stresses fundamental and in-depth analysis of all holdings. The Fund may at times use futures to replicate bond positions.


82.0

10.0

0.0

0.0

3.0

2.0

3.0

0.0

AAA & Government

AA

A

BBB

BB

B

Below B

NR/NA

√ A longer duration stance in the U.S., Germany and Canada helped recent returns as government yields declined as investors gravitated towards slow growth and low inflation expectations.

√ An underweight position to European peripheral sovereigns also helped as they continued to underperform the German bunds.√ An overweight position to bonds of financial companies continued to benefit returns as they outperformed the broader corporate

market as banks benefited from improved asset quality and reduced uncertainty over regulatory changes √ Holdings of high quality consumer asset-backed bonds and non-Agency mortgage securities helped results as demand was strong for

high quality assets offering extra yield over government bonds.√ An underweight position in Japan hurt performance as rates fell.√ An underweight to the euro and pound sterling hurt as these currencies rebounded sharply, though was partially offset by an

overweight to a basket of Asian currencies.



FUND OBJECTIVE


No data found.Product Name PIMCO:For Bd (DH);Inst (PFORX)

Fund Family PIMCO

Ticker PFORX

Peer Group IM International Fixed Income (MF)

Benchmark Citigroup Non-U.S. WGB Hedged


Portfolio Manager Scott A. Mather



Gross Expense 0.52%

Net Expense 0.52%

Turnover 236%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

PIMCO Foreign Bond (USD-Hedged) I 3.15 11.09 13.14 9.70 6.87 6.98 19.04 -2.36 3.98 2.94 5.72 6.65 3.57 7.66 8.97 9.89

Citigroup Non-U.S. WGB Hedged 1.88 4.61 4.75 5.64 4.76 5.23 2.38 8.01 4.87 3.11 5.69 5.18 1.88 6.85 6.10 9.62

IM International Fixed Income (MF) 10.46 7.59 6.48 7.05 6.20 7.01 8.76 1.86 9.24 5.30 -8.23 10.81 16.30 19.74 -1.34 0.80

PIMCO Foreign Bond (USD-Hedged) I Rank 92 18 12 19 32 52 9 81 82 81 4 79 84 75 1 18

The fund takes an all-encompassing approach tow ard international f ixed-income investing. Top-dow n w ork begins w ith a 3-5 year outlook for the global economy and interest rates follow ed by using a

country-bond allocation model to help determine w hich 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.

PIMCO Foreign Bond (USD-Hedged) I

September 30, 2010



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1Year

3Years

5Years

PIMCO Foreign Bond (USD-Hedged) I 3.2 (92) 13.1 (12) 9.7 (19) 6.9 (32)

Citigroup Non-U.S. WGB Hedged 1.9 (100) 4.7 (70) 5.6 (75) 4.8 (92)

5th Percentile 11.8 14.7 11.3 8.6

1st Quartile 11.3 11.8 9.2 7.5

Median 10.5 6.5 7.1 6.2

3rd Quartile 9.1 4.3 5.5 5.6

95th Percentile 3.0 1.2 4.3 4.6


September 30, 2010



1Year

3Years

5Years

10Years

Return 13.14 9.70 6.87 6.98


vs. Citigroup Non-U.S. WGB Hedged

Tracking Error 2.31 5.62 4.48 3.29

Alpha 8.33 7.03 3.95 3.02

Beta 0.95 0.47 0.61 0.75

R-Squared 0.46 0.06 0.13 0.26

Consistency 83.33 66.67 56.67 58.33


Sharpe Ratio 3.93 1.46 0.87 1.13

No data found.



September 30, 2010

Objective:


Portfolio Characteristics: Style:

Assets (Billions): 37.0$ P/E: 13.0 V B G

U.S. Stocks: 81.3% P/B: 1.4 X L

Cash: 1.7% Turnover Ratio: 18% M

Foreign: 17.0% Assets in Top 10: 33% S

Avg. Mkt. Cap. (Billions): 33.0$ Total Holdings: 85

Sector Analysis Top Ten Holdings

Large Cap Value Commentary:



Dodge & Cox Stock

Hewlett-Packard

Comcast

Capital One Financial

Merck

Schlumberger

Novartis AG

Fund Commentary:

V=Value, B=Blend, G=Growth

15.6Management Team

Wells Fargo

L=Large, M=Mid, S=Small

General Electric

Time Warner

GlaxoSmithKline PLC

The fund is managed by Dodge & Cox's nine member Investment Policy Committee. The firm's 19 analysts work alongside this committee to provide continuous analysis of the fund. The fund's portfolio is built one security at a time, based on Dodge & Cox's fundamental research effort, a three-to-five year time horizon and a strong price discipline. The fund invests in companies that appear to be temporarily undervalued by the stock market but have a favorable outlook for long-term growth. The fund focuses on the underlying financial condition and prospects of individual companies, including future earnings, cash flow and dividends. Various other factors, including financial strength, economic condition, competitive advantage and quality of the business franchise are weighed against valuation in selecting individual securities. Because management is sensitive to how much they pay for each company's future earnings and cash flow, the valuation characteristics (such as price-to-earnings ratio or "P/E") of the fund are typically lower than that of the market. Dodge & Cox's search for "value" can lead management to invest in companies based outside the U.S. By prospectus the fund can invest up to 20% of its assets in U.S. dollar-denominated foreign securities. The fund re-opened to new investors on February 4, 2008.

Equity markets rose in the third quarter, despite sharp intra-period gyrations in reaction to changing expectations for the economic recovery. All sectors rallied and, with few exceptions, posted broadly similar gains, led by telecom, industrial resources and other cyclical stocks. Telecom carriers rose on the prospect of more profitable tiered pricing systems, rather than the all-inclusive plans currently used by most subscribers. After being pressured earlier in the year by global economic concerns, the materials sector rebounded. These stocks rallied amid the easing of concern about a double-dip recession and the positive economic news from China, a huge consumer of raw materials. The outliers were financials and housing-related stocks, which were hurt most by the flare-up in worries about the economy in August. Uncertainties surrounding regulatory reform also weighed on money-center and investment banks. Reflecting its larger weight in financials, the Russell 1000 Value Index rose 10%, trailing its growth counterpart’s 13% gain.

5.7

7.4

12.8

7.6

20.7

5.6

2.1

16.2

5.4

6.9

9.4

0.0

1.8

1.8

4.7

6.5

13.3

3.9

2.6

27.1

10.3

9.5

11.3

7.2

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services

% Financial Services

% Consumer Goods

% Industrial Materials

% Energy

% UtilitiesFund R1000V

√ Strong performances from the fund's healthcare holdings aided results during the third quarter of 2010. Pfizer was a notable contributor, rising 22% after the company reported a quarterly profit largely due to last year's buyout of Wyeth. The fund's international pharmas also benefited returns. GlaxoSmithKline and Novartis rallied 17% and 19%, respectively.√ Holdings within both the information technology and consumer staples sectors also contributed positively to results. Among the fund's consumer-related holdings, Walgreen rose 26%, rebounding from a weak return in the prior quarter. √ Other notable contributors included FedEx (+22%) which rallied after the company announced a jump in earnings and raised financial forecasts, citing particularly strong international shipments. √ Key detractors during the quarter included holdings in the energy, financial services and consumer discretionary sectors.



FUND OBJECTIVE


No data found.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





Gross Expense 0.52%

Net Expense 0.52%

Turnover 12%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Dodge & Cox Stock 10.85 2.08 6.65 -10.23 -1.47 5.44 31.27 -43.31 0.14 18.53 9.37 19.17 32.34 -10.54 9.33 16.31

Russell 1000 Value Index 10.13 4.49 8.90 -9.39 -0.48 2.59 19.69 -36.85 -0.17 22.25 7.05 16.49 30.03 -15.52 -5.59 7.01

IM U.S. Large Cap Value Equity (MF) 10.15 1.95 6.76 -9.02 -0.58 2.12 23.43 -37.05 1.57 18.05 5.46 13.07 28.88 -19.29 -4.26 9.29

Dodge & Cox Stock Rank 25 46 52 74 70 4 14 91 62 45 14 2 19 5 9 22

The portfolio is built based on Dodge & Cox's fundamental research effort, a three-to-f ive year time horizon, and a strong price discipline. It invests in companies that appear to be temporarily undervalued

by the stock market but have a favorable outlook for long-term grow th, w hile focusing on the 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 w eighed 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.

Dodge & Cox Stock

September 30, 2010



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3Years

5Years

Dodge & Cox Stock 10.9 (25) 6.7 (52) -10.2 (74) -1.5 (70)

Russell 1000 Value Index 10.1 (52) 8.9 (20) -9.4 (59) -0.5 (49)

5th Percentile 12.2 10.9 -5.5 2.1

1st Quartile 10.8 8.4 -7.4 0.4

Median 10.2 6.8 -9.0 -0.6

3rd Quartile 9.6 5.0 -10.3 -1.7

95th Percentile 8.6 2.8 -13.3 -4.0

Dodge & Cox Stock

September 30, 2010

RISK CHARACTERISTICS PORTFOLIO CHARACTERISTICS

SECTOR EXPOSURE (%)

Portfolio Benchmark

Total Securities 84 669

Price/Earnings (P/E) 18.3 13.5

Price/Book (P/B) 2.2 1.8

Dividend Yield 2.5 2.7

1Year

3Years

5Years

10Years

Return 6.65 -10.23 -1.47 5.44


vs. Russell 1000 Value Index

Tracking Error 3.71 5.92 4.91 4.83

Alpha -2.60 0.50 -0.69 2.86

Beta 1.09 1.10 1.08 1.04

R-Squared 0.97 0.95 0.95 0.93

Consistency 50.00 58.33 50.00 58.33


Sharpe Ratio 0.42 -0.33 -0.09 0.25

Dodge & Cox Stock

September 30, 2010

Objective:

Manager:


U.S. Stocks: 100% P/E: 15.2 V B G

Cash: 0% P/B: 2.3 x L

Foreign: 0% P/S: 1% M

Total Holdings: 500 S

Med. Mkt. Cap. (Billions): 9.8$

Sector Analysis

Comments:

Top Five Detractors

Bank of America

Meditronic

Management Team

PNC Financial Services

AT&T

ExxonMobil

Pfizer

Top Five Contributors


Hewlett-Packard

Chevron

Southwestern Energy

iShares S&P 500

Apple


4.4

10.9

3.1

5.3

11.4

8.5

3.1

16.0

11.4

11.4

11.0

3.6

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% Utility

The iShares S&P 500 seeks investment results that correspond closely to the performance, before fees and expenses, of the S&P 500 index. The fund invests at least 90% of assets in S&P 500 index securities it uses a passive indexing approach that does not judge the investment merits of particular securities through economic, financial or market analysis. The fund may hold up to 10% of non-S&P assets, includingfutures contracts, options, cash and cash equivalents.

Despite mixed economic data and wavering consumer confidence, strong corporate profits and an accommodative Fed drove the S&P 500 Index to its best September return since 1939. The Index gained 11% for the quarter, to end at 1,141. The business cycle has been a powerful force in the recovery. Corporations continue to report better than expected earnings, the second quarter being the sixth consecutive positive surprise. Importantly, corporations are beginning to utilize their balance sheet, in the form of increasing dividends/share repurchase programs and accelerating merger and acquisition activity. In fact, over 80% of S&P 500 companies beat their earnings estimates for the second quarter and total revenues were up 9% versus a year ago. The Index closed the quarter at a multiple of 13.8 times 2010 earnings estimates. The current low level of inflation suggests valuations on the index have room to expand. Telecom was the top performing sector, luring investors with attractive yields. Many of these companies offer dividend yields that exceed the yields on their bonds. Cyclical sectors such as materials and industrials were aided by reports of record demand for steel, potential shortages in copper, which hit a high for the year, record high gold prices and increased M&A activity. Financials lagged on fears reform would limit gains on the future profitability of banks. Healthcare stocks continued to be penalized for uncertainty regarding the implementation of legislation passed earlier in the year, which could pressure their pricing models, as well as upcoming patent expirations.

A. Maccioli, Investment Analyst, DiMeo Schneider & Associate, L.L.C. 10/10


4.4

10.9

3.1

5.3

11.4

8.5

3.1

16.0

11.4

11.4

11.0

3.6

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% Utility

The iShares S&P 500 seeks investment results that correspond closely to the performance, before fees and expenses, of the S&P 500 index. The fund invests at least 90% of assets in S&P 500 index securities it uses a passive indexing approach that does not judge the investment merits of particular securities through economic, financial or market analysis. The fund may hold up to 10% of non-S&P assets, includingfutures contracts, options, cash and cash equivalents.

Despite mixed economic data and wavering consumer confidence, strong corporate profits and an accommodative Fed drove the S&P 500 Index to its best September return since 1939. The Index gained 11% for the quarter, to end at 1,141. The business cycle has been a powerful force in the recovery. Corporations continue to report better than expected earnings, the second quarter being the sixth consecutive positive surprise. Importantly, corporations are beginning to utilize their balance sheet, in the form of increasing dividends/share repurchase programs and accelerating merger and acquisition activity. In fact, over 80% of S&P 500 companies beat their earnings estimates for the second quarter and total revenues were up 9% versus a year ago. The Index closed the quarter at a multiple of 13.8 times 2010 earnings estimates. The current low level of inflation suggests valuations on the index have room to expand. Telecom was the top performing sector, luring investors with attractive yields. Many of these companies offer dividend yields that exceed the yields on their bonds. Cyclical sectors such as materials and industrials were aided by reports of record demand for steel, potential shortages in copper, which hit a high for the year, record high gold prices and increased M&A activity. Financials lagged on fears reform would limit gains on the future profitability of banks. Healthcare stocks continued to be penalized for uncertainty regarding the implementation of legislation passed earlier in the year, which could pressure their pricing models, as well as upcoming patent expirations.



FUND OBJECTIVE


No data found.Product Name iShares:S&P 500 Index (IVV)

Fund Family BlackRock Fund Advisors

Ticker

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

Benchmark S&P 500


Portfolio Manager O'Connor/Leung



Gross Expense 0.09%

Net Expense 0.09%

Turnover 5%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

iShares S&P 500 Index 11.24 3.84 10.08 -7.17 0.60 -0.49 26.43 -36.95 5.44 15.69 4.83 10.77 28.53 -22.15 -11.96 N/A

S&P 500 11.29 3.89 10.16 -7.16 0.64 -0.43 26.46 -37.00 5.49 15.79 4.91 10.88 28.68 -22.10 -11.89 -9.10

IM U.S. Large Cap Core Equity (MF) 10.85 2.22 8.06 -7.27 0.43 -0.21 26.75 -37.02 5.83 14.03 5.31 9.69 26.17 -21.92 -11.67 -3.82

iShares S&P 500 Index Rank 40 20 22 49 47 57 52 50 55 31 57 37 31 54 53 N/A

This exchange traded fund (ETF) seeks performance corresponding to the price and yield performance, before fees and expenses, of the large cap portion 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 w eighted basis w here 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.

iShares S&P 500 Index

September 30, 2010



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3Years

5Years

iShares S&P 500 Index 11.2 (40) 10.1 (22) -7.2 (49) 0.6 (47)

5th Percentile 12.9 12.5 -3.5 3.2

1st Quartile 11.7 9.7 -5.8 1.5

Median 10.8 8.1 -7.3 0.4

3rd Quartile 10.0 6.5 -8.6 -0.8

95th Percentile 8.6 3.7 -11.4 -2.8


September 30, 2010


SECTOR EXPOSURE (%)

Portfolio1Year

3Years

5Years

10Years

Return 10.08 -7.17 0.60 -0.49


vs. S&P 500

Tracking Error 0.05 0.05 0.04 0.04

Alpha -0.06 -0.02 -0.04 -0.06

Beta 1.00 1.00 1.00 1.00

R-Squared 1.00 1.00 1.00 1.00

Consistency 41.67 44.44 31.67 25.83


Sharpe Ratio 0.61 -0.28 -0.02 -0.10

Total Securities 501

Avg. Market Cap 79.07 Billion

P/E 18.9

P/B 3.6

Div. Yield 2.50%

Annual EPS 9.0

5Yr EPS 11.5

3Yr EPS Growth 5.2


September 30, 2010

Objective:


5.3$ P/E: 17.3 V B G

Dividend Yield 1.5% P/B: 3.5 x L

Total Holdings: 627 P/Sales 1.5 M

S

Sector Analysis Top Five Contributors


Bottom Five Contributors


Med. Mkt. Cap. (Billions)

Medtronic

Southwestern Energy

Medco Health Solutions

Google

iShares Russell 1000 Growth

Apple

Exxon Mobil

Oracle

Qualcomm

Hewlett-Packard

14.7

10.1

10.0

4.6

10.1

13.1

31.4

5.0

0.9

0.1

Consumer Discretionary

Consumer Staples

Energy

Financials

Healthcare

Industrials

Information Technology

Materials

Telecom

Utilities

The iShares Russell 1000 Growth Index Fund seeks investment results that correspond generally to the price and yield performance of the Russell 1000 Growth index. The fund invests at least 90% of assets in the securities of the underlying index. It uses a replication strategy in order to track the Russell 1000 Growth index, which measures the performance of the large-capitalization sector of the US equity market. The fund invests in those Russell 1000 index companies with higher price-to-book ratios and higher forecasted growth.

Large Cap Growth Market Commentary:

C. Waddell, Investment Analyst, DiMeo Schneider & Associates, L.L.C. 10/10

SanDisk

The Russell 1000 Growth Index rallied 13% during the third quarter of 2010 as improving economic data and expectations of a new round of Federal Reserve stimulus allayed fears of a double-dip recession. Equity investors also took some comfort in progress on resolving the Eurozone sovereign debt crisis, reassuring economic indicators out of China and a respite from last quarter’s surge in the dollar. While economic news remained somewhat mixed, a raft of mergers-and-acquisitions activity and strong quarterly earnings were seen as early signals of rising confidence among business leaders. Cyclical areas, such as the consumer discretionary sector, were among the market leaders during the third quarter. The financial services sector was among the poorer performing areas, largely due to the lingering mortgage foreclosure mess.

Medco Health Solutions


14.7

10.1

10.0

4.6

10.1

13.1

31.4

5.0

0.9

0.1


Consumer Staples

Energy

Financials

Healthcare

Industrials


Materials

Telecom

Utilities

The iShares Russell 1000 Growth Index Fund seeks investment results that correspond generally to the price and yield performance of the Russell 1000 Growth index. The fund invests at least 90% of assets in the securities of the underlying index. It uses a replication strategy in order to track the Russell 1000 Growth index, which measures the performance of the large-capitalization sector of the US equity market. The fund invests in those Russell 1000 index companies with higher price-to-book ratios and higher forecasted growth.



FUND OBJECTIVE


No data found.Product Name iShares:Russ 1000 Gr Idx (IWF)


Ticker

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

Benchmark Russell 1000 Growth Index


Portfolio Manager Leung/O'Connor



Gross Expense 0.20%

Net Expense 0.20%

Turnover 24%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

iShares Russell 1000 Growth Index 12.93 4.23 12.46 -4.49 1.90 -3.61 36.94 -38.48 11.63 8.86 5.08 6.09 29.46 -27.99 -20.64 N/A

Russell 1000 Growth Index 13.00 4.36 12.65 -4.36 2.06 -3.44 37.21 -38.44 11.81 9.07 5.26 6.30 29.75 -27.88 -20.42 -22.42

IM U.S. Large Cap Growth Equity (MF) 12.31 2.97 10.24 -5.64 1.08 -2.67 34.78 -40.18 13.99 6.47 5.64 7.28 26.66 -27.39 -20.71 -12.18

iShares Russell 1000 Growth Index Rank 42 30 25 33 33 67 42 37 70 23 57 66 31 55 50 N/A

This exchange traded fund (ETF) seeks performance corresponding to the price and yield performance, before fees and expenses, of the large cap grow th portion of the U.S. equity market, as

represented by the Russell 1000 Grow th Index. The Russell 1000 Grow th Index is comprised of the stocks w ithin the Russell 1000 Index w ith higher price-to-book values and higher forecasted grow th

values. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index.

iShares Russell 1000 Growth Index

September 30, 2010



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3Years

5Years

iShares Russell 1000 Growth Index 12.9 (42) 12.5 (25) -4.5 (33) 1.9 (33)

5th Percentile 16.8 17.0 -1.9 4.0

1st Quartile 13.9 12.4 -4.1 2.3

Median 12.3 10.2 -5.6 1.1

3rd Quartile 11.4 8.4 -7.5 -0.1

95th Percentile 10.1 5.2 -10.3 -1.9


September 30, 2010


SECTOR EXPOSURE (%)

Portfolio1Year

3Years

5Years

10Years

Return 12.46 -4.49 1.90 -3.61


vs. Russell 1000 Growth Index

Tracking Error 0.05 0.04 0.04 0.06

Alpha -0.15 -0.15 -0.16 -0.18

Beta 1.00 1.00 1.00 1.00

R-Squared 1.00 1.00 1.00 1.00

Consistency 16.67 19.44 11.67 11.67


Sharpe Ratio 0.70 -0.15 0.05 -0.23



P/E 21.4

P/B 5.2

Div. Yield 2.21%

Annual EPS 7.3

5Yr EPS 16.5

3Yr EPS Growth 9.8


September 30, 2010

Objective:


3.3$ P/E: 18.4 V B G

Dividend Yield 1.4% P/B: 2.2 L

Total Holdings: 400 P/Sales: 1.0 x M

S

Sector Analysis Top Five Contributors

Beckman Coulter

Cree Inc.

Lincare Holdings


Bottom 5 Contributors

iShares S&P Midcap 400

F5 Networks

Netflix

Joy Global

Bucyrus International

Lubrizol


Med. Mkt. Cap. (Billions)

3 9%

5.8%

20.3%

12.1%

14.8%

14.9%

6.8%

0.8%

5.8%

C St l

Energy

Financials

Healthcare

Industrials


Materials

Telecommunications

Utilities

The iShares S&P Midcap 400 Fund seeks investment results that correspond generally to the price and yield performance of the S&P Midcap 400 index. The fund invests at least 90% of assets in the securities of the underlying index. It uses a replication strategy in order to track the S&P Midcap 400 index, which measures the performance of the mid-capitalization sector of the US equity market.

Comments:

A. Repta, Senior Analyst, DiMeo Schneider & Associate, L.L.C. 10/10

The third quarter of 2010 was a very volatile time period. July began as a positive month for investors as corporate earnings got off to a reasonably good start, BP was able to cap the well in the Gulf of Mexico, and parts of Europe demonstrated signs of stabilization. August, however, was down on negative factors such as revisions to economic growth in developed markets, and weak consumer confidence. September ended the quarter on a very strong note, displaying the best performance for the month of September in decades. For the third quarter, the Russell MidCap Value Index, the Russell MidCap Growth Index and the Russell MidCap Index advanced 12.1%, 14.7% and 13.3%, respectively.

Cree Inc.

Strayer Education

Aeropostale Inc.


14.6%

3.9%

5.8%

20.3%

12.1%

14.8%

14.9%

6.8%

0.8%

5.8%


Consumer Staples

Energy

Financials

Healthcare

Industrials


Materials

Telecommunications

Utilities

The iShares S&P Midcap 400 Fund seeks investment results that correspond generally to the price and yield performance of the S&P Midcap 400 index. The fund invests at least 90% of assets in the securities of the underlying index. It uses a replication strategy in order to track the S&P Midcap 400 index, which measures the performance of the mid-capitalization sector of the US equity market.



FUND OBJECTIVE


No data found.Product Name iShares:S&P MC 400 Idx (IJH)


Ticker

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

Benchmark S&P MidCap 400


Portfolio Manager O'Connor/Leung



Gross Expense 0.21%

Net Expense 0.21%

Turnover 14%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

iShares S&P MidCap 400 Index 13.05 11.40 17.55 -1.72 3.64 5.26 37.21 -36.19 7.80 10.13 12.48 16.29 35.36 -14.70 -0.68 N/A

S&P MidCap 400 13.12 11.57 17.78 -1.67 3.77 5.40 37.38 -36.23 7.98 10.32 12.55 16.50 35.64 -14.51 -0.61 17.51

IM U.S. Mid Cap Core Equity (MF) 12.28 8.89 14.41 -4.42 2.14 3.40 34.82 -38.75 6.83 12.37 10.42 15.85 34.55 -15.63 -2.13 11.30

iShares S&P MidCap 400 Index Rank 25 8 16 20 20 21 33 24 39 68 26 40 41 36 37 N/A

The iShares S&P Midcap 400 Fund seeks investment results that correspond generally to the price and yield performance of the S&P Midcap 400 index. The fund invests at least 90% of assets in the

securities of the underlying index. It uses a replication strategy in order to track the S&P Midcap 400 index, w hich measures the performance of the mid-capitalization sector of the US equity market.

iShares S&P MidCap 400 Index

September 30, 2010



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1Year

3Years

5Years

iShares S&P MidCap 400 Index 13.1 (25) 17.5 (16) -1.7 (20) 3.6 (21)

5th Percentile 14.7 19.3 1.0 6.5

1st Quartile 13.0 16.8 -2.1 3.4

Median 12.3 14.4 -4.4 2.1

3rd Quartile 10.7 12.5 -6.5 0.4

95th Percentile 7.5 7.9 -10.1 -1.8


September 30, 2010


SECTOR EXPOSURE (%)

Portfolio1Year

3Years

5Years

10Years

Return 17.55 -1.72 3.64 5.26


vs. S&P MidCap 400

Tracking Error 0.03 0.09 0.09 0.08

Alpha -0.18 -0.07 -0.12 -0.13

Beta 1.00 1.00 1.00 1.00

R-Squared 1.00 1.00 1.00 1.00

Consistency 0.00 22.22 15.00 13.33


Sharpe Ratio 0.87 0.02 0.16 0.24



P/E 24.8

P/B 3.1

Div. Yield 2.43%

Annual EPS 18.1

5Yr EPS 10.5

3Yr EPS Growth 5.0


September 30, 2010



FUND OBJECTIVE


No data found.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


Portfolio Manager Stephen A. Clark



Gross Expense 0.52%

Net Expense 0.52%

Turnover 19%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

DFA US Small Cap Value I 12.46 10.16 13.35 -5.33 0.49 9.02 33.62 -36.79 -10.75 21.55 7.79 25.39 59.40 -9.27 22.65 9.01

Russell 2000 Value Index 9.72 7.92 11.84 -4.99 0.73 7.72 20.58 -28.92 -9.78 23.48 4.71 22.25 46.03 -11.43 14.03 22.83

IM U.S. Small Cap Value Equity (MF) 9.98 8.57 13.28 -3.69 1.62 8.20 30.29 -32.97 -5.97 16.41 6.24 20.28 42.22 -11.72 15.43 19.48

DFA US Small Cap Value I Rank 12 26 50 69 68 32 37 70 79 11 33 13 10 36 18 84

The process selects stocks from the bottom deciles of NYSE issues, but include only the “value” subset. Stocks are ranked by book-to-market ratio, and stocks falling in the top three deciles (30%) are

purchased for the fund. Book value is reconstructed for each eligible issue based on management’s interpretation of how accounting charges affect “real” book value. This product w ill not ow n REITs,

ADRs or foreign stocks, recently issued IPOs, companies w ith less than 3 years of history, or OTC companies w ith few er than 4 market makers.

DFA US Small Cap Value I

September 30, 2010



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1Year

3Years

5Years

DFA US Small Cap Value I 12.5 (12) 13.3 (50) -5.3 (69) 0.5 (68)

Russell 2000 Value Index 9.7 (57) 11.8 (62) -5.0 (65) 0.7 (64)

5th Percentile 12.9 18.1 0.7 5.8

1st Quartile 11.3 15.1 -1.3 3.3

Median 10.0 13.3 -3.7 1.6

3rd Quartile 9.0 10.9 -5.8 -0.4

95th Percentile 6.5 7.4 -8.3 -2.9


September 30, 2010


SECTOR EXPOSURE (%)

Portfolio Benchmark

Total Securities 1,540 1,290




1Year

3Years

5Years

10Years

Return 13.35 -5.33 0.49 9.02


vs. Russell 2000 Value Index

Tracking Error 4.05 4.84 4.35 5.27

Alpha 0.23 0.64 0.01 0.80

Beta 1.15 1.10 1.09 1.10

R-Squared 1.00 0.98 0.98 0.96

Consistency 50.00 52.78 55.00 58.33


Sharpe Ratio 0.58 -0.05 0.05 0.39


September 30, 2010

Objective:



Assets (Millions): 89.5$ P/E: 25.6 V B G

U.S. Stocks: 91.6% P/B: 3.0 L

Cash: 4.5% Turnover Ratio: 14% M

Foreign: 2.0% Assets in Top 10: 33% X S

Avg. Mkt. Cap. (Millions): 914.3$ Total Holdings: 73


S ll C G th M k t C t

Blackboard

Conestoga Capital Advisor Small Cap

CoStar

Advent Software

Bottomline Technologies

Advisory Board

Carbo Ceramics

Raven Ind


8.0Robert Mitchell

comScore


Hittite Microwave

Sun Hydraulics

Conestoga was founded in 2001 when the founders' previous firm was sold. However, they were able to keep the track record for the product. Their investment style focuses on high quality small cap companies with long term sustainable growth in the 15 – 20% range. They have a fairly concentrated portfolio of 45 – 50 stocks with turnover in the 30% range which is consistent with their 3 – 5 year outlook. Ideas are generated approximately equally across three sources – quantitative screening; regional, boutique brokers; and company contacts through industry conferences, trade shows or other research. Fundamental research is focused on strong earnings and ROE growth, a low debt to capitalization rate and strong balance sheet and a solid management team. At least 90% of the portfolio will have a market capitalization of less than $2 billion which is consistent with a small cap mandate.

28.1

11.5

0.0

2.0

14.4

0.0

18.8

7.5

2.4

7.4

7.9

0.0

10.7

12.6

1.7

4.1

17.3

9.9

10.1

4.7

12.6

12.3

3.8

0.1

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% UtilitiesR2000G Fund

Small Cap Growth Market Commentary:



Fund Commentary:

Conestoga was founded in 2001 when the founders' previous firm was sold. However, they were able to keep the track record for the product. Their investment style focuses on high quality small cap companies with long term sustainable growth in the 15 – 20% range. They have a fairly concentrated portfolio of 45 – 50 stocks with turnover in the 30% range which is consistent with their 3 – 5 year outlook. Ideas are generated approximately equally across three sources – quantitative screening; regional, boutique brokers; and company contacts through industry conferences, trade shows or other research. Fundamental research is focused on strong earnings and ROE growth, a low debt to capitalization rate and strong balance sheet and a solid management team. At least 90% of the portfolio will have a market capitalization of less than $2 billion which is consistent with a small cap mandate.

Despite ongoing economic and political uncertainty, investor fears of a double-dip recession seemed to wane in the third quarter. Many of the same issues that caused concern in the prior quarter such as European debt woes, economically damaging protectionist rhetoric and stubbornly high unemployment, have actually provided fuel for the market rebound. Across market capitalizations, large- and mid-cap issues marginally outperformed smaller companies. Meanwhile,growth stocks outperformed value stocks. The top performing sectors in the Russell 2000 Growth Index for the third quarter included energy, information technology and materials. The worst performing sectors included utilities, consumer staples and healthcare.

28.1

11.5

0.0

2.0

14.4

0.0

18.8

7.5

2.4

7.4

7.9

0.0

10.7

12.6

1.7

4.1

17.3

9.9

10.1

4.7

12.6

12.3

3.8

0.1

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% UtilitiesR2000G Fund

√ An overweight position in technology was offset by the fund's holdings, many of which failed to keep pace with those in the benchmark. √ Blackboard Inc. (BBBB), Pegasystems Inc. (PEGA), and TeleCommunication Systems Inc (TSYS) were each among the weaker performers for the

quarter. Each company faced unique challenges during the quarter, and each was reviewed thoroughly by our investment team. √ Stock picks were strongest among healthcare, despite lack of exposure to the non-earning biotechnology industry.√ A further headwind for returns was the outperformance of the higher beta companies, which are under-represented in the fund. Management feels

the valuations of these lower-quality companies are expensive and untenable. Instead, they feel the higher quality companies remain attractively priced given the recent rebound and could benefit from a robust stock market.



FUND OBJECTIVE


No data found.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, Jr

Total Assets $133 Million


Gross Expense 1.24%

Net Expense 1.10%

Turnover 23%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Conestoga Small Cap 11.32 8.07 13.95 -0.78 3.51 N/A 29.09 -27.68 6.43 9.18 4.39 18.81 33.68 N/A N/A N/A

Russell 2000 Growth Index 12.83 10.23 14.79 -3.75 2.35 -0.13 34.47 -38.54 7.05 13.35 4.15 14.31 48.54 -30.26 -9.23 -22.43

IM U.S. Small Cap Growth Equity (MF) 12.33 9.29 14.94 -5.02 1.54 0.43 35.29 -41.82 8.71 10.26 5.38 11.88 43.82 -27.74 -11.93 -7.10

Conestoga Small Cap Rank 68 64 59 8 20 N/A 78 1 61 59 65 11 88 N/A N/A N/A

The investment style focuses on high quality small cap companies w ith long term sustainable grow th in the 15 - 20% range. Ideas are generated approximately equally across three sources - quantitative

screening; regional, boutique brokers; and company contacts through industry conferences, trade show s or other research. Fundamental research is focused on strong earnings and ROE grow th, a low

debt to capitalization rate, strong balance sheet, and a solid management team. The portfolio is fairly concentrated at 45 - 50 stocks w ith turnover around 30%.

Conestoga Small Cap

September 30, 2010



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CurrentQuarter

1Year

3Years

5Years

Conestoga Small Cap 11.3 (68) 13.9 (59) -0.8 (8) 3.5 (20)

Russell 2000 Growth Index 12.8 (41) 14.8 (53) -3.7 (30) 2.3 (40)

5th Percentile 16.1 23.0 0.2 6.2

1st Quartile 13.8 19.2 -3.4 3.3

Median 12.3 14.9 -5.0 1.5

3rd Quartile 10.8 11.8 -7.9 -0.1

95th Percentile 8.4 6.2 -10.7 -2.8

Conestoga Small Cap

September 30, 2010


SECTOR EXPOSURE (%)

Portfolio Benchmark

Total Securities 42 1,261




1Year

3Years

5Years

10Years

Return 13.95 -0.78 3.51 N/A


vs. Russell 2000 Growth Index


Alpha 1.12 1.87 1.24 N/A

Beta 0.84 0.82 0.82 N/A

R-Squared 0.95 0.96 0.94 N/A

Consistency 41.67 47.22 51.67 N/A



Conestoga Small Cap

September 30, 2010

Objective:




Emerging Market: 19% P/B: 2.0 X L

Cash: 6% Turnover Ratio: 26% M

Total Holdings: 394 Assets in Top 10: 17% S

Avg. Mkt. Cap. (Billions): 35.7$

Sector Analysis Regional Analysis

International Equity Market Commentary:



American Funds EuroPacific Growth

11.3Management Team

V=Value, B=Blend, G=GrowthL=Large, M=Mid, S=Small

Fund Commenatry:

International developed markets posted positive results as the MSCI EAFE Index rallied 17%. Stocks around the world climbed significantly higher during the third quarter, thanks to very strong gains in both July and September. The rally was fueled by a variety of factors, including strong corporate earnings and subsiding concerns about the health of the Eurozone economies. However, the past three months were not without periods of volatility. While many investors felt that the European sovereign debt crisis was behind them, Ireland, Spain and Portugal all had their credit ratings cut. After starting the year as one of the best performing developed markets in the world, Japan stumbled badly in the third quarter. In September, the yen surged to its strongest level against the U.S. dollar in 15 years and threatened to slow the nation’s economic recovery. In reaction, the Japanese government intervened in the foreign-exchange market and sold yen for the first time since 2004. Among the largest European markets, France and Germany gained 21% and 17%, respectively. Within the Pacific region, Australia and Hong Kong soared 24% and 22%, respectively. Meanwhile, gains in Japan were limited to 6%.

The fund divides assets among several portfolio counselors whose investment philosophies vary from growth-focused to value-oriented. A portion of the portfolio is run by the firm's research analyst group. Management implements a strict bottom-up approach when choosing stocks, favoring large-cap firms with strong growth potential. They invest in undervalued blue-chip multinationals and hold them for the long-term. Management avoids making country bets and instead focuses on stock selection. A highly diversified portfolio, coupled with the fund’s typical 10-15% cash stake, help keep the fund’s risk scores below its average peer. The maximum allowance to the emerging markets is 20%. By fund definition, this excludes allocations to Taiwan and South Korea.

3.3

7.2

10.9

46.4

2.6

2.7

10.6

2.3

6.3

7.7

0.2

0.2

20.7

42.0

0.0

1.0

23.3

8.3

4.3

0.1

% North America

% Central & Latin America

% United Kingdom

% West Europe ex UK

% Emerging Europe

% Africa

% Japan

% Australasia

% Asia 4 Tigers Emerg

% Asia ex 4 Tigers Emerg EAFE

Fund

1.7

4.9

1.0

9.8

12.0

5.0

2.1

22.7

17.3

13.4

7.6

2.7

0.9

1.9

1.1

6.6

9.0

6.1

4.4

24.3

17.4

16.7

7.2

4.4

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% UtilitiesEAFE

Fund

√ Within financials, stock selection in European commercial banks and insurance companies benefited third quarter results. Bank stocks rallied as the government stress test provided increased transparency for the financials sector.√ The fund's consumer discretionary positioning also proved positive. Performing particularly well, were the fund's automobile companies. Germany's Daimler, which owns Mercedes-Benz, rallied 25% amid increasing emerging markets demand. Daimler is seeing significant growth in Brazil and Russia. √ On the negative side, the fund's underweight to the strong performing industrial materials sector detracted. Within this space, the fund's metals & mining names performed poorly.√ Among the fund's energy-related stocks, holdings in oil, gas and consumable fuel companies underperformed.√ Lastly, the fund's 6% cash stake detracted from results.



FUND OBJECTIVE


No data found.Product Name American Funds EuPc;F-1 (AEGFX)

Fund Family American Funds

Ticker AEGFX

Peer Group IM International Large Cap Core Equity (MF)

Benchmark MSCI EAFE Index





Gross Expense 0.85%

Net Expense 0.85%

Turnover 31% No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

American Funds EuroPacific Gr F-1 16.83 3.51 7.02 -4.64 5.84 N/A 39.10 -40.55 18.94 21.84 21.05 19.63 32.84 -13.65 N/A N/A

MSCI EAFE Index 16.53 1.46 3.71 -9.06 2.45 2.99 32.46 -43.06 11.63 26.86 14.02 20.70 39.17 -15.66 -21.21 -13.96

IM International Large Cap Core Equity (MF) 17.15 1.36 3.51 -9.85 1.66 2.02 29.13 -43.52 11.41 24.97 13.57 17.12 32.48 -16.58 -21.79 -14.36

American Funds EuroPacific Gr F-1 Rank 59 12 12 2 6 N/A 11 15 6 86 5 22 48 25 N/A N/A

The fund is sub-advised by Capital Research and Management Company. Using a common pool of industry analysts for research, eight portfolio counselors construct independent portfolios using their

individual styles from grow th to value. The fund tends to focus on blue chip multinational companies w hile allow ing each portfolio sleeve to invest up to 25% in emerging markets. The resulting portfolio

holds over 400 securities w ith relatively low turnover.

American Funds EuroPacific Gr F-1

September 30, 2010



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1Year

3Years

5Years

American Funds EuroPacific Gr F-1 16.8 (59) 7.0 (12) -4.6 (2) 5.8 (6)

MSCI EAFE Index 16.5 (65) 3.7 (45) -9.1 (38) 2.4 (31)

5th Percentile 18.7 7.8 -6.2 6.0

1st Quartile 17.8 5.1 -8.4 2.8

Median 17.2 3.5 -9.8 1.7

3rd Quartile 16.2 2.1 -11.3 0.6

95th Percentile 14.5 -0.9 -14.0 -1.8


September 30, 2010


SECTOR EXPOSURE (%)REGION WEIGHTS (%)

Portfolio Benchmark





1Year

3Years

5Years

10Years

Return 7.02 -4.64 5.84 N/A


vs. MSCI EAFE Index


Alpha 3.24 4.14 3.41 N/A

Beta 0.99 0.94 0.95 N/A

R-Squared 0.98 0.96 0.96 N/A

Consistency 66.67 63.89 63.33 N/A


Sharpe Ratio 0.43 -0.11 0.26 N/A


September 30, 2010

Objective:



Assets (Billions): 6.9$ Turnover Ratio: 16% V B G

Emerging Market: 0% Assets in Top 10: 8% L

Cash: 0% M

Total Holdings: 2186 X S


DFA International Small Cap Value

11.01Herro/Clark



Dimensional Fund Advisors (DFA) uses their trademark rules based style to construct this portfolio to represent what they believe isthe international small cap value universe. They start with the countries in the MSCI World ex U.S. Index and focus on securities possessing a high book value in relation to their market value. This sort excludes firms with negative or zero book values and accounts for additional factors such as price-to-cash-flow or price-to-earnings ratios to assess value. They then take the bottom10 – 15% of each of these countries by float adjusted market cap with a floor of $50 million and apply over 30 screens to narrow down the portfolio holdings. These exclusionary screens include trading issues such as liquidity, float and trading history; and pricinissues such as bankruptcy, merger target or foreign restrictions. Some portfolio restrictions are applied such as a 25% limit on industries and 5% security limits. In addition, DFA uses their trading strategies which incorporate various measures of trading costs (both explicit and implicit) and momentum in determining if they want to move a security in or out of the portfolio.

0.0

0.0

21.8

7.9

4.1

0.0

0.0

0.0

25.5

9.4

4.7

0.2

% Emerging Europe

% Africa

% Japan

% Australasia


% Asia ex 4 Tigers Emerg EAFE Small Cap

Fund

10.8

5.7

21.2

17.2

32.5

3.6

0.4

11.1

9.6

18.8

13.7

24.4

4.5

1.9

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% UtilitiesEAFE Small Cap

Fund

International Small Cap Commentary:

Fund Commentary:



International small cap equities ended the third quarter of 2010 with robust results. The Pacific ex-Japan markets delivered the strongest returns, and European markets followed closely, aided by better economic news and easing of the European debt crisis. Performance in emerging markets was also very strong, but Japan’s stock market lagged due to economic and political factors. Economic headwinds persist, but corporate earnings have remained strong and bountiful cash positions are underpinning mergersand acquisitions and shareholder friendly measures such as dividends and share buybacks. While both large- and small-capitalizationstocks posted sharply positive results during the third quarter of 2010, small-cap international stocks generally outperformed larger-cap international stocks.

Dimensional Fund Advisors (DFA) uses their trademark rules based style to construct this portfolio to represent what they believe isthe international small cap value universe. They start with the countries in the MSCI World ex U.S. Index and focus on securities possessing a high book value in relation to their market value. This sort excludes firms with negative or zero book values and accounts for additional factors such as price-to-cash-flow or price-to-earnings ratios to assess value. They then take the bottom10 – 15% of each of these countries by float adjusted market cap with a floor of $50 million and apply over 30 screens to narrow down the portfolio holdings. These exclusionary screens include trading issues such as liquidity, float and trading history; and pricinissues such as bankruptcy, merger target or foreign restrictions. Some portfolio restrictions are applied such as a 25% limit on industries and 5% security limits. In addition, DFA uses their trading strategies which incorporate various measures of trading costs (both explicit and implicit) and momentum in determining if they want to move a security in or out of the portfolio.

8.4

0.9

17.2

39.7

0.0

0.0

21.8

7.9

4.1

0.0

0.1

0.3

20.5

39.3

0.0

0.0

25.5

9.4

4.7

0.2

% North America


% United Kingdom

% West Europe ex UK

% Emerging Europe

% Africa

% Japan

% Australasia


% Asia ex 4 Tigers Emerg EAFE Small Cap

Fund

0.3

2.7

2.3

1.7

1.5

10.8

5.7

21.2

17.2

32.5

3.6

0.4

2.1

2.8

3.6

2.2

5.2

11.1

9.6

18.8

13.7

24.4

4.5

1.9

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% UtilitiesEAFE Small Cap

Fund

√ From a sector perspective, the fund's positioning in financial services detracted from third quarter performance results. Inparticular, the fund's avoidance of REITs weighed on results.

√ Meanwhile, the fund's overweigh to the strong performing industrial materials sector proved positive.√ From a country perspective, the fund's positioning in Japan, Scandinavia, Singapore and Hong Kong detracted. Positioning

in the U.K. and Ireland aided results.



FUND OBJECTIVE


No data found.Product Name DFA Intl Sm Cap Val;I (DISVX)

Fund Family Dimensional Fund Advisors LP

Ticker DISVX

Peer Group IM International SMID Cap Value Equity (MF)

Benchmark MSCI EAFE Small Cap Value





Gross Expense 0.70%

Net Expense 0.70%

Turnover 18%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

DFA Intl Small Cap Value I 16.35 4.94 2.88 -7.56 3.63 12.04 39.51 -41.68 2.95 28.39 23.23 34.80 66.48 5.79 -4.59 -3.09

MSCI EAFE Small Cap Value 16.48 8.23 4.96 -5.99 3.96 10.66 50.03 -45.55 1.01 28.22 20.99 35.31 60.14 2.14 -8.38 -5.12

IM International SMID Cap Value Equity (MF) 16.41 11.26 15.48 -5.43 N/A N/A 60.67 -46.25 6.52 27.43 21.06 28.95 52.24 -3.31 -7.09 -3.17

DFA Intl Small Cap Value I Rank 57 87 87 91 N/A N/A 64 16 67 17 1 1 1 1 12 45

DFA's quantitative approach begins w ith the countries in the MSCI World ex U.S. Index and focuses on securities possessing a high book value in relation to their market value. This sort excludes firms

w ith negative or zero book values and accounts for additional factors such as price-to-cash-flow or price-to-earnings ratios to assess value. They then take the bottom 10 - 15% of each of these

countries by f loat adjusted market cap w ith a f loor of $50 million and apply over 30 screens to narrow dow n the portfolio holdings. These exclusionary screens include trading issues such as liquidity,

f loat and trading history; pricing issues such as bankruptcy, merger target or foreign restrictions; or momentum. Some portfolio restrictions are applied such as a 25% limit on industries and 5% security

limits.

DFA Intl Small Cap Value I

September 30, 2010



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1Year

3Years

5Years

DFA Intl Small Cap Value I 16.3 (57) 2.9 (87) -7.6 (91) 3.6 (N/A)

MSCI EAFE Small Cap Value 16.5 (48) 5.0 (84) -6.0 (69) 4.0 (N/A)

5th Percentile 19.9 17.7 -2.7 N/A

1st Quartile 19.7 16.6 -3.6 N/A

Median 16.4 15.5 -5.4 N/A

3rd Quartile 14.6 7.7 -6.3 N/A

95th Percentile 13.1 -2.9 -8.4 N/A


September 30, 2010



Portfolio Benchmark

Total Securities 2,216

Price/Earnings (P/E) 18.6

Price/Book (P/B) 1.0

Dividend Yield 2.9

1Year

3Years

5Years

10Years

Return 2.88 -7.56 3.63 12.04


vs. MSCI EAFE Small Cap Value

Tracking Error 3.87 3.93 3.33 3.18

Alpha -2.21 -1.84 -0.26 1.48

Beta 1.11 0.98 0.98 0.98

R-Squared 0.98 0.98 0.98 0.97

Consistency 50.00 47.22 53.33 55.00


Sharpe Ratio 0.23 -0.17 0.16 0.56


September 30, 2010

Objective:




Developed: 20% P/B: 2.4 X L


Total Holdings: 55 Assets in Top 10: 33% S

Avg. Mkt. Cap. (Billions): 16.8$




Aberdeen Emerging Markets

2.8Devan Kaloo

4.5

3.1

0.0

6.7

6.8

12.7

4.3

26.9

9.1

9.1

16.8

0.0

1.5

7.8

1.1

9.2

2.5

3.6

2.1

25.1

10.5

19.3

14.5

2.9

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% Utilities

MSCI EM

Fund

The fund seeks to invest in high quality companies when they are trading at a discounted price. High quality companies are defined as those with recurring revenue growth, a quality management team, a “core” business, and strong balance sheet. Fundamental research is conducted by their global team to understand the growth prospects of the firm and the quality of the financials. Valuation is determined by the type of company and its economic sector. Portfolios are constructed on a bottom-up basis with risk controls in place to assure diversification and control risk. The portfolio will typically hold 50 - 70 securities.

1.6

31.0

3.6

0.0

11.2

7.8

0.0

0.0

11.9

32.9

0.2

23.5

0.0

0.0

10.5

10.6

0.0

0.0

23.3

32.0

% North America


% United Kingdom

% West Europe ex UK

% Emerging Europe

% Africa

% Japan

% Australasia


% Asia ex 4 Tigers Emerg

MSCI EM

Fund

Emerging Markets Commentary:

Fund Commentary:



4.5

3.1

0.0

6.7

6.8

12.7

4.3

26.9

9.1

9.1

16.8

0.0

1.5

7.8

1.1

9.2

2.5

3.6

2.1

25.1

10.5

19.3

14.5

2.9

% Software

% Hardware

% Media

% Telecom

% Healthcare

% Consumer Services

% Business Services


% Consumer Goods


% Energy

% Utilities

MSCI EM

Fund

Emerging markets continued to advance in the third quarter, maintaining a solid lead over their developed market counterparts in the first nine months of 2010. For the quarter, the MSCI EM Index rallied 18%. Cyclical sectors, such as materials, industrials and consumer discretionary outperformed on the back of continued demand and an improved outlook for the global economy. In Asia, China gained 11% as the country surpassed Japan as the world’s second largest economy during the quarter. In Latin America, mixed economic data did not prevent the region from generating strong returns. Brazil rose 22%, while Mexico advanced 12%. Among EMEA (Eastern Europe, Middle East and Africa) countries, a renewed increase in global risk appetite has helped drive the markets up. South Africa soared 25% despite concerns about nationwide labor strikes, while gains among commodity producers boosted Russia’s stock market 13%.

The fund seeks to invest in high quality companies when they are trading at a discounted price. High quality companies are defined as those with recurring revenue growth, a quality management team, a “core” business, and strong balance sheet. Fundamental research is conducted by their global team to understand the growth prospects of the firm and the quality of the financials. Valuation is determined by the type of company and its economic sector. Portfolios are constructed on a bottom-up basis with risk controls in place to assure diversification and control risk. The portfolio will typically hold 50 - 70 securities.

1.6

31.0

3.6

0.0

11.2

7.8

0.0

0.0

11.9

32.9

0.2

23.5

0.0

0.0

10.5

10.6

0.0

0.0

23.3

32.0

% North America


% United Kingdom

% West Europe ex UK

% Emerging Europe

% Africa

% Japan

% Australasia


% Asia ex 4 Tigers Emerg

MSCI EM

Fund

√ The portfolio outpaced the index, led by the fund's financial holdings, retailers in South Africa, as well as an overweightto peripheral markets such as the Philippines and Thailand, whose economies have been performing better thananticipated this year.

√ In EMEA, both stock selection and asset allocation were positive. South African retailers Massmart and Truworths rose markedly, aided initially by good results backed by improving sales and subsequently by US-based Wal-Mart’s preliminary offer to acquire Massmart. In Hungary, drugmaker Gedeon Richter rose on the back of encouraging second-quarter earnings.

√ Brazil contributed the most to results in Latin America, particularly in terms of stock selection, with Banco Bradesco, Ultrapar, Lojas Renner and Souza Cruz all benefiting from robust domestic demand.

√ In Asia, stock selection in India and the Philippines proved positive. The Bank of the Philippine Islands gained on expectations that it would meet its earnings target and news that it was considering an acquisition, while Ayala Land was bolstered by property sales and optimism about the economy. Meanwhile, domestic demand and solid second-quarter results lifted Siam Cement. The portfolio’s underweight to China also helped, despite the lackluster share price performances of China Mobile and PetroChina.



FUND OBJECTIVE


No data found.Product Name Aberdeen:Em Mkt Inst;I (ABEMX)

Fund Family Aberdeen Asset Management Inc

Ticker ABEMX

Peer Group IM Emerging Markets Equity (MF)

Benchmark MSCI Emerging Markets Index





Gross Expense 1.10%

Net Expense 0.95%

Turnover 1%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Aberdeen Emerging Markets Instl 19.97 20.48 28.71 9.24 N/A N/A 76.55 -40.36 N/A N/A N/A N/A N/A N/A N/A N/A

MSCI Emerging Markets Index 18.16 11.02 20.54 -1.20 13.08 13.77 79.02 -53.18 39.78 32.59 34.54 25.95 56.28 -6.00 -2.37 -30.61

IM Emerging Markets Equity (MF) 18.79 10.71 19.00 -3.20 10.92 13.02 73.66 -54.86 36.44 32.20 32.14 24.11 54.51 -5.63 -3.23 -30.18

Aberdeen Emerging Markets Instl Rank 26 4 8 1 N/A N/A 36 2 N/A N/A N/A N/A N/A N/A N/A N/A

The fund seeks to invest in high quality companies w hen they are trading at a discounted price. High quality companies are defined as those w ith recurring revenue grow th, a quality management team, a

“core” business, and strong balance sheet. Fundamental research is conducted by Aberdeen's global team to understand the grow th prospects of the firm and the quality of the f inancials. 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-term outlook that has led to a low

turnover rate, but can also produce higher tracking error. The portfolio w ill typically hold 50 - 70 securities. Expense cap 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.

Aberdeen Emerging Markets Instl

September 30, 2010



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1Year

3Years

5Years

Aberdeen Emerging Markets Instl 20.0 (26) 28.7 (8) 9.2 (1) N/A

MSCI Emerging Markets Index 18.2 (64) 20.5 (36) -1.2 (31) 13.1 (17)

5th Percentile 22.1 30.7 2.3 15.2

1st Quartile 20.0 21.6 -0.9 12.1

Median 18.8 19.0 -3.2 10.9

3rd Quartile 17.5 17.0 -5.6 9.8

95th Percentile 13.4 12.9 -9.4 6.0


September 30, 2010



Portfolio Benchmark


Price/Earnings (P/E) 20.8

Price/Book (P/B) 4.8

Dividend Yield 1.9

1Year

3Years

5Years

10Years

Return 28.71 9.24 N/A N/A

Standard Deviation 19.33 29.40 N/A N/A

vs. MSCI Emerging Markets Index

Tracking Error 4.29 7.55 N/A N/A

Alpha 7.36 9.78 N/A N/A

Beta 0.98 0.87 N/A N/A

R-Squared 0.95 0.96 N/A N/A

Consistency 66.67 61.11 N/A N/A


Sharpe Ratio 1.41 0.41 N/A N/A


September 30, 2010

Objective:




U.S. Stocks: 96% P/B: 1.8 L

Cash: 1% Turnover Ratio: 117% X M

Foreign: 3% Assets in top 10: 41% S

Med. Mkt. Cap. (Billions): 4.3$ Total Holdings: 104


Vornado Realty

Host Hotels & Resorts

HCP

John Wenker

Public Storage

Liberty Property Trust

Ventas



Camden Property Trust

Nuveen Real Estate Securities

Simon Property

Equity Residential

Boston Ppty

8.2

Management selects companies that it believes exhibit strong management teams, a strong competitive competition, above average growth in revenues and a sound balance sheet. Based on top down sector and regional trends, management will make tactical sector allocations bets.

Effective December 31, 2010 the First American Real Estate Securities fund was renamed to Nuveen Real Estate Securities.

4.9

11.3

0.9

6.6

16.7

0.8

9.1

5.3

7.1

12.5

24.8

8.9

13.6

0.8

5.3

15.9

7.0

9.1

4.5

6.3

12.6

16.0

Other

Healthcare

Mfg. Homes

Self-Storage

Apartments

Diversified

Community Centers

Industrial

Hotels

Malls

Office

NAREIT Equity REIT

Fund

Real Estate Market Commentary:


Fund Commentary:

T. Sweet, Sr. Investment Analyst, DiMeo Schneider & Associates, L.L.C. 10/10

Liberty Property Trust

Domestic REITs gained 13% for the quarter. REITs’ bond-like income stream coupled with improving operating fundamentals continued to provide price support. All sectors posted gains, led by class-A regional malls and self storage, both of which benefited from low cost to capital and desirable real estate. Hotels lagged as revenue per available rooms has not yet recovered. Capital markets have recovered with REITs commanding a favorable cost of capital. Lending is generally available to REITs at attractive yields with insurance companies becoming increasingly active and aggressive. In fact, REITs raised nearly $33 billion during 2010, using the proceeds to pay down debt and begin to make strategic acquisitions of properties. REITs debt ratio currently stands at 44%, down nearly one-third from 66% at the REIT market’s trough in March 2009. REITs ended the quarter yielding 3.8%.

Management selects companies that it believes exhibit strong management teams, a strong competitive competition, above average growth in revenues and a sound balance sheet. Based on top down sector and regional trends, management will make tactical sector allocations bets.

Effective December 31, 2010 the First American Real Estate Securities fund was renamed to Nuveen Real Estate Securities.

4.9

11.3

0.9

6.6

16.7

0.8

9.1

5.3

7.1

12.5

24.8

8.9

13.6

0.8

5.3

15.9

7.0

9.1

4.5

6.3

12.6

16.0

Other

Healthcare

Mfg. Homes

Self-Storage

Apartments

Diversified

Community Centers

Industrial

Hotels

Malls

Office

NAREIT Equity REIT

Fund

√ The fund's best performing sectors on a relative-value basis were apartments, regional malls and community centers. The fund's modest holdings in the infrastructure sector also did well.√ The REITs held in the fund are biased towards higher quality stocks with strong balance sheets, quality assets, good cash flow

characteristics, and strong management teams.√ The most notable underperformance was in the healthcare REIT sector where an overweight position in a couple of underperforming

stocks hurt results√ Management currently holds nearly 10% of the portfolio outside of the index in real estate rich companies and real estate operating

companies in an effort to shelter the portfolio somewhat from the short-term adverse effects of sector rotation and negative sentiment.

FUND INFO



FUND OBJECTIVE

QUARTERLY COMMENTS - ASSET CLASS

No data found.Product Name Nuveen Real Est;I (FARCX)

Fund Family Nuveen Fund Advisors Inc

Ticker FARCX

Peer Group IM Real Estate Sector (MF)

Benchmark FTSE NAREIT Equity REIT Index


Portfolio Manager Rosenberg/Wenker/Sedlak



Gross Expense 1.04%

Net Expense 1.04%

Turnover 133%

No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Nuveen Real Estate Secs I 13.78 21.02 32.15 -3.19 4.90 12.07 30.53 -34.80 -15.19 39.47 15.29 32.49 37.58 7.36 9.82 32.23

FTSE NAREIT Equity REIT Index 12.82 19.08 30.27 -6.07 1.87 10.36 28.01 -37.74 -15.70 35.03 12.17 31.56 37.08 3.81 13.93 26.36

IM Real Estate Sector (MF) 12.91 18.63 29.57 -6.33 1.67 9.51 29.03 -38.76 -17.18 34.69 12.59 32.35 36.16 4.20 8.64 28.94

Nuveen Real Estate Secs I Rank 10 9 10 10 2 2 28 12 16 1 17 46 31 14 35 10

The fund is managed on a relative basis w ith a focus on individual stock selection rather than economic or market cycles. The ultimate goal is to select securities that have positive grow th aspects at a

reasonable price. A research-driven team approach utilizes front end quantitative screens w ith qualitative assessments, sub-sector analysis, and economic research. The outcome is a diversif ied

portfolio from both a sector and geographic basis, w hich holds securities w ith the best risk/rew ard for their given industry. Effective December 31, 2010 the First American Real Estate Securities fund

was renamed to Nuveen Real Estate Securities. Also effective December 31, 2010, the fund is closed to new investment.

Nuveen Real Estate Secs I

September 30, 2010



Re

turn

Pe

rce

ntile

Ra

nk

CurrentQuarter

1Year

3Years

5Years

Nuveen Real Estate Secs I 13.8 (10) 32.2 (10) -3.2 (10) 4.9 (2)

FTSE NAREIT Equity REIT Index 12.8 (57) 30.3 (36) -6.1 (43) 1.9 (48)

5th Percentile 14.1 33.2 -1.3 3.9

1st Quartile 13.2 30.9 -5.1 2.6

Median 12.9 29.6 -6.3 1.7

3rd Quartile 12.4 27.9 -7.6 0.7

95th Percentile 10.3 23.2 -11.0 -4.2


September 30, 2010

RISK CHARACTERISTICS REGION DISTRIBUTION

SECTOR EXPOSURE (%)

No data found.1Year

3Years

5Years

10Years

Return 32.15 -3.19 4.90 12.07


vs. FTSE NAREIT Equity REIT Index

Tracking Error 1.14 3.07 2.53 2.45

Alpha 1.58 2.16 2.80 1.96

Beta 1.00 0.94 0.95 0.94

R-Squared 1.00 1.00 1.00 0.99

Consistency 50.00 55.56 60.00 58.33


Sharpe Ratio 1.47 0.08 0.23 0.50

No data found.


September 30, 2010

Objective:




U.S. Stocks: 9% P/B: 1.0 X L


Emerging Markets: 7% Assets in top 10: 43% S

Med. Mkt. Cap. (Billions): 6.8$ Total Holdings: 84

Sector Analysis Top Five Holdings

Hong Kong

7%

9%

11%

17%

31%

Cohen & Steers International Real Estate

Sun Hung Kai Ppty

Unibail-Rodamco

Mitsubishi Estate

Mitsui Fudosan Co.

Top Five Countries

4.4Management Team

Westfield



Canada

Singapore

Japan

Australia

31.5%

21.9%

2.5%

5.6%

0.0%

3.0%

34.2%

0.1%

1.2%

Office

Apartment

Diversified

Industrial

Self Storage

Hotel

Retail

Health Care

Other

Cohen & Steers has been managing domestic REIT portfolios since 1986 and have almost $20 billion under management. The International strategy is a relatively new product to them but their team is very experienced. In 2004, Cohen & Steers bought a stake in Brussels based Houlihan and Rovers who had been managing global REITs since 2000 with a team that had decades of experience prior to that. In addition, Cohen & Steers hired a team of analysts in the Far East to manage the Asian portion of the portfolio. The entire portfolio is managed out of Cohen & Steers New York office with research and input from the Europe and Asian teams. The investment committee formulates macro inputs for each country and the regional teams provide individual security analysis using price to NAV ratios to create a portfolio of 50 - 70 international securities.

International Real Estate Market Commentary:



Fund Commentary:

31.5%

21.9%

2.5%

5.6%

0.0%

3.0%

34.2%

0.1%

1.2%

Office

Apartment

Diversified

Industrial

Self Storage

Hotel

Retail

Health Care

Other

International REITs rallied 22% for the quarter, with strength in virtually all major geographies. European property companies generated the highest total returns, up over 28%, sparked by positive economic data from Germany. Further driving this region was the positive response to bank stress tests in July followed by Basel III pronouncements in September both of which were deemed to be less stringent than expected. The U.K. real estate market saw improvements in the London office market. This market continues to be the most transparent on global basis. Signs that China and Australia may moderate their tightening bias drove returns in Asia-Pacific, which were up over 19%. Hong Kong led the region as the market began to recognize that share prices were significantly undervalued relative to improving fundamentals across the office, retail and residential sectors. However, the market continues to face the potential for more housing-related tightening policies. Australia posted gains on steady fundamentals amid a strong economy. Japan’s real estate market was boosted by the prospects of further monetary easing measures. Singapore’s share prices began to reflect improvements in underlying property fundamentals. It appeared that recent government measures to cool speculation in the housing market had limited impact on share prices thus far.

Cohen & Steers has been managing domestic REIT portfolios since 1986 and have almost $20 billion under management. The International strategy is a relatively new product to them but their team is very experienced. In 2004, Cohen & Steers bought a stake in Brussels based Houlihan and Rovers who had been managing global REITs since 2000 with a team that had decades of experience prior to that. In addition, Cohen & Steers hired a team of analysts in the Far East to manage the Asian portion of the portfolio. The entire portfolio is managed out of Cohen & Steers New York office with research and input from the Europe and Asian teams. The investment committee formulates macro inputs for each country and the regional teams provide individual security analysis using price to NAV ratios to create a portfolio of 50 - 70 international securities.

√ The fund's overweights and stock selection in Finland and Sweden contributed positively to relative returns. Management favors Scandinavianmarkets, which are growing faster than Europe as a whole and have sound banking systems.

√ Stock selection in the United Kingdom, where an overweight both Derwent and Great Portland, also aided performance√ The fund held an out-of-index allocation to Brazil, where holdings, including shopping mall owners, had large gains amid a healthy economy and

rising retail spending.√ Factors that detracted from performance included stock selection in Canada. Melcor Developments, which focuses on Canada’s resource-rich western

provinces, declined, although management favors the company’s long-term prospects.√ An overweight in Australia also hindered performance, though was more than offset by favorable stock selection in the market.

FUND INFO



FUND OBJECTIVE

QUARTERLY COMMENTS - ASSET CLASS

No data found.Product Name Cohen&Steers Itl Rlty;I (IRFIX)

Fund Family Cohen & Steers Capital Management Inc

Ticker IRFIX

Peer Group IM International Real Estate (MF)

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


Portfolio Manager Rovers/Sullivan

Total Assets $884 Million


Gross Expense 1.26%

Net Expense 1.26%

Turnover 84%No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Cohen & Steers Int'l Realty I 22.66 8.80 10.01 -10.94 2.55 N/A 35.96 -47.26 -4.32 44.45 N/A N/A N/A N/A N/A N/A

S&P Developed Ex-U.S. Property 21.68 10.74 12.30 -11.32 2.85 9.44 42.76 -51.79 -1.55 43.90 17.28 40.97 45.76 1.72 -9.50 2.97

The fund’s team consists of almost 30 globally based investment professionals coordinated by the CIO, Joseph Harvey. Portfolio construction is done primarily on a bottom up basis using the regional

analysts' fundamental research. Net asset value and cash f low estimates are created for each company and the f irm’s proprietary international valuation model then uses these inputs (price to NAV first

and cash f low grow th second) to determine optimal security w eights. Sector and geographic w eightings are driven primarily by their outlook for each national economy and an assessment of w hich

property types w ill perform best in that environment, considering the supply/demand conditions.

Cohen & Steers Int'l Realty I

September 30, 2010

RELATIVE PERFORMANCE TO INDEXRISK AND RETURN (10/01/05-09/30/10)RISK CHARACTERISTICS

REGION DISTRIBUTION SECTOR EXPOSURE (%)

1Year

3Years

5Years

10Years

Return 10.01 -10.94 2.55 N/A


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


Alpha -2.57 -0.01 -0.19 N/A

Beta 1.06 0.96 0.97 N/A

R-Squared 0.95 0.95 0.95 N/A

Consistency 50.00 47.22 45.00 N/A


Sharpe Ratio 0.56 -0.27 0.13 N/A

2.5

2.6

2.7

2.8

2.9

24.86 24.87 24.88



Cohen & Steers Int'l Realty I

September 30, 2010

Objective:


Portfolio Characteristics:

Assets (Billions): 16.5$ Turnover Ratio: 397%Cash: 14.4% Assets in Top 10: 77%Other (Non-Bond): 12.5% Total Holdings: 613

PIMCO Commodity Real Return

2.8Mihir Worah

DJ UBS Commodity Index Sector AnalysisCredit Quality Analysis

The fund combines a commodities position, typically through swap agreements, with a portfolio of inflation-indexed bonds and other fixed-income securities. The investment selection process is driven by both a top-down and bottom-up investment approach. Using a top-down strategy, research is conducted, focusing on identifying trends that will affect the global economy and interest rates over a 3 to 5 year period. This macroeconomic forecast is the basis for the funds' parameters including duration, yield-curve positioning, sector weightings and credit quality. The bottom-up approach drives the security selection process, identifying specific inflation-indexed and fixed-income securities that will add value without incurring unacceptable levels of risk.

PIMCO actively utilizes structural alpha strategies to add value by taking advantage of identifiable, economic factors that create patterns of risk premia, minimize negative roll yield, and provide other techniques in an attempt to generate returns that are incremental to a published index.


1.0

0.0

0.0

0.0

BB

B

Below B

NR/NA

21.8%

11.0%

28.3%

Grains

Softs/Vegetable Oil

Energy

Commodity Market Commentary:



Fund Commentary:

Commodities were direct beneficiaries of the improved economic outlook, rising on the Fed’s announcement of additional quantitative easing as well as a declining U.S. dollar. Energy shed 4%, weighed down by heavy losses in natural gas. Natural gas was driven lower by reduced cooling demand with summer coming to a close in addition to ample storage amounts. Grains gained 29% driven by lowered global production estimates due to a severe drought in Russia and Eastern Europe. Corn and soybeans rose in sympathy given the potential for wheat to gain acreage on these crops. Industrial metals also surged 20%, helped by the weaker dollar and the potential growth implications from additional quantitative easing. Softs rallied 27% with sugar prices driving most of the gains as adverse weather conditions in Brazil caused export delays.

The fund combines a commodities position, typically through swap agreements, with a portfolio of inflation-indexed bonds and other fixed-income securities. The investment selection process is driven by both a top-down and bottom-up investment approach. Using a top-down strategy, research is conducted, focusing on identifying trends that will affect the global economy and interest rates over a 3 to 5 year period. This macroeconomic forecast is the basis for the funds' parameters including duration, yield-curve positioning, sector weightings and credit quality. The bottom-up approach drives the security selection process, identifying specific inflation-indexed and fixed-income securities that will add value without incurring unacceptable levels of risk.

PIMCO actively utilizes structural alpha strategies to add value by taking advantage of identifiable, economic factors that create patterns of risk premia, minimize negative roll yield, and provide other techniques in an attempt to generate returns that are incremental to a published index.


90.0

4.0

4.0

1.0

1.0

0.0

0.0

0.0

AAA & Government

AA

A

BBB

BB

B

Below B

NR/NA

14.0%

6.6%

18.3%

21.8%

11.0%

28.3%

Precious Metals

Livestock

Industrial Metals

Grains

Softs/Vegetable Oil

Energy

PIMCO's active trading strategies added value during the period amid the volatility. The fund's TIPS collateral outperformed the T-Bill collateral assumed within a commodity index as real yields rallied. A longer duration stance helped as rates fell, which included exposure to core Europe early in the quarter and more

emphasis on U.S. duration later after core Europe rallied. The fund's holdings of senior commercial and non-Agency mortgage-backed securities rallied as demand improved for

high quality assets offering extra yield over Treasuries. Exposure to longer maturity Build America Bonds helped as they saw strong demand as an alternative to corporate

credit. On the downside, the fund's emphasis on short-to-intermediate maturities hurt as the yield curve flattened.



FUND OBJECTIVE


No data found.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



Gross Expense 0.89%

Net Expense 0.74%

Turnover 198%No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

PIMCO Commodity Real Ret Strat Instl 14.60 7.51 20.03 -2.32 -0.38 N/A 39.91 -43.33 23.80 -3.04 20.50 16.36 29.82 N/A N/A N/A

Dow Jones-UBS Commodity Index 11.61 0.90 10.01 -6.84 -2.35 5.19 18.91 -35.65 16.23 2.07 21.36 9.15 23.93 25.91 -19.51 31.84

The fund combines a position in commodity-linked derivative instruments, primarily sw aps through an offshore subsidiary, w ith 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 diversif ication benefits of

the commodity futures market, w hile 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 inf lation

hedging properties of both commodity futures and TIPS (Double Real).

PIMCO Commodity Real Ret Strat Instl

September 30, 2010


RISK CHARACTERISTICS STRATEGY ALLOCATION (index)

No data found.1Year

3Years

5Years

10Years

Return 20.03 -2.32 -0.38 N/A


vs. Dow Jones-UBS Commodity Index


Alpha 8.90 7.63 3.30 N/A

Beta 1.04 1.21 1.19 N/A

R-Squared 0.95 0.94 0.93 N/A

Consistency 75.00 63.89 53.33 N/A



PIMCO Commodity Real Ret Strat Instl

September 30, 2010

Kayne Anderson MLP Investment Co.

Fund Facts™ is a product of DiMeo Schneider & Associates, L.L.C. Information is obtained from various sources, which are deemed but not guaranteed to be accurate. See prospectus for details.

Objective: Kayne Anderson MLP Investment Co. is a non-diversified, closed-end management investment company whose investment objective is to obtain a high after-tax total return by investing the vast majority of it's total assets in energy related MLPs and other Midstream Energy Companies. MLPs are 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 invest in private or restricted investment opportunities not available to retail investors along with debt securities of MLPs and other Midstream Energy Companies.

Manager: Kayne Anderson Fund Advisors, LLC

67.0%

9.0%

4.0%

12.0%

1.0%

2.0%

5.0%

Midstream MLPs

MLP Affiliates

Propane MLPs

General Partners

Coal MLPs and Other

Upstream MLPs

Shipping MLPs

Percent

Sub-

Sec

tor

Strategy Allocation Sep-10

Fund Characteristics (09/10): Assets under Management $2,677 MillionInception Date 9/28/04Management Fee (11/09) 2.0%

MLP Commentary: The Alerian MLP Index performed in line with the broad markets during the quarter but is outperforming for the year and

over 3, 5, and 10 year trailing periods The index is yielding 6.5%, its lowest level in almost 3 years All subsectors were positive for the quarter. General partnerships outperformed while marine transport MLPs lagged Investor risk appetite increased, causing higher beta names to outperform Valuation metrics are generally within normal ranges even though the index is near all time highs Volatility declined across all segments Consolidation, private equity, and major oil companies drove above average M&A activity Solid fundamentals and distribution increases continued Demand for high quality yield led to positive, steady fund flows Several new offerings came to market, ranging from the asset class’s first ETF to additional closed end funds to a short

MLP ETN Fund Commentary:

All sub-sectors were positive, led by General Partners Due to shale market demands, Gatherers and Processors outperformed Generally low dispersion and high correlation across the portfolio Seeing strong flows and a broadening of their clientele During the quarter, the team executed a public follow-on offering The team expects unconventional opportunities to drive further M&A and drop down investments

T. Leedy, Sr. Investment Analyst, DiMeo Schneider & Associates, L.L.C. 10/10



FUND OBJECTIVE



No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Kayne Anderson MLP Invst Co 2.07 10.74 34.17 3.28 7.01 N/A 69.80 -38.07 -5.65 45.02 3.01 N/A N/A N/A N/A N/A

Alerian MLP Index 11.22 24.32 44.99 12.90 12.97 18.11 76.41 -36.80 12.42 27.62 5.22 15.92 41.60 0.24 44.36 47.94

Kayne Anderson MLP Investment Co. is a non-diversif ied, closed-end management investment company w hose investment objective is to obtain a high after-tax total return by investing the vast majority of

it's total assets in energy related MLPs and other Midstream Energy Companies. MLPs are publicly traded limited partnerships. Energy-related MLPs ow n 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 netw ork of relationships w ith major

energy companies and an investment team w ith over 134 years of combined energy experience. The fund may also invest in private or restricted investment opportunities not available to retail investors

along w ith debt securities of MLPs and other Midstream Energy Companies.

Kayne Anderson MLP Invst Co

September 30, 2010


RISK CHARACTERISTICS STRATEGY ALLOCATION

No data found.1Year

3Years

5Years

10Years

Return 34.17 3.28 7.01 N/A


vs. Alerian MLP Index


Alpha -6.82 -2.31 -0.46 N/A

Beta 1.00 0.83 0.83 N/A

R-Squared 0.53 0.31 0.32 N/A

Consistency 33.33 44.44 50.00 N/A



Kayne Anderson MLP Invst Co

September 30, 2010

Tortoise Energy Infrastructure Corp.

Fund Facts™ is a product of DiMeo Schneider & Associates, L.L.C. Information is obtained from various sources, which are deemed but not guaranteed to be accurate. See prospectus for details.

Objective: Tortoise Energy Infrastructure Corp. is a non-diversified, closed-end management investment company. The fund seeks to provide investors with an efficient vehicle to invest in publicly traded energy infrastructure MLPs while providing a high level of total return with an emphasis on current distributions. 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.

Manager: Tortoise Capital Advisors, LLC

40.6%

39.6%

13.2%

6.1%

0.0%

0.5%

Crude/ Refined Products Pipelines

Natural Gas/ Natural Gas Liquids Pipelines

Natural Gas Gathering/Processing

Propane Distribution

Cash Equivalents

Shipping

Percent

Su

b-S

ec

tor

Strategy Allocation

Aug-10

Fund Characteristics (06/10): Assets under Management $1,382 MillionInception Date 3/2/04Management Fee (11-09) 1.5%

MLP Commentary: The Alerian MLP Index performed in line with the broad markets during the quarter but is outperforming for the year and

over 3, 5, and 10 year trailing periods The index is yielding 6.5%, its lowest level in almost 3 years All subsectors were positive for the quarter. General partnerships outperformed while marine transport MLPs lagged Investor risk appetite increased, causing higher beta names to outperform Valuation metrics are generally within normal ranges even though the index is near all time highs Volatility declined across all segments Consolidation, private equity, and major oil companies drove above average M&A activity Solid fundamentals and distribution increases continued Demand for high quality yield led to positive, steady fund flows Several new offerings came to market, ranging from the asset class’s first ETF to additional closed end funds to a short

MLP ETN Fund Commentary:

Technical market factors caused the fund’s share price to lag NAV performance. T. Leedy, Sr. Investment Analyst, DiMeo Schneider & Associates, L.L.C. 10/10



FUND OBJECTIVE



No data found.

CurrentQuarter

YTD 1Year

3Years

5Years

10Years

2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Tortoise Energy Infrastructure Corp. 7.56 16.00 37.11 8.60 9.29 N/A 99.37 -44.48 1.67 37.50 4.53 N/A N/A N/A N/A N/A

Alerian MLP Index 11.22 24.32 44.99 12.90 12.97 18.11 76.41 -36.80 12.42 27.62 5.22 15.92 41.60 0.24 44.36 47.94

Tortoise Energy Infrastructure Corp. is a non-diversif ied, closed-end management investment company. The fund seeks to provide investors w ith an eff icient vehicle to invest in publicly traded energy

infrastructure MLPs w hile providing a high level of total return w ith an emphasis on current distributions. The fund may additionally invest in private or restricted investment opportunities not available to

retail investors along w ith debt securities of MLPs and other Midstream Energy Companies.


September 30, 2010


RISK CHARACTERISTICS STRATEGY ALLOCATION

No data found.1Year

3Years

5Years

10Years

Return 37.11 8.60 9.29 N/A


vs. Alerian MLP Index


Alpha -0.18 -2.84 -2.43 N/A

Beta 0.87 1.05 1.05 N/A

R-Squared 0.45 0.69 0.62 N/A

Consistency 33.33 50.00 50.00 N/A




September 30, 2010

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.

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 months the fund has beaten the index and the percent of the months 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.

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.

Privacy Policy and Practices of DiMeo Schneider & Associates, L.L.C.

DiMeo Schneider & Associates values the trust our clients place in us and we are committed to the responsible management, use and protection of our clients’ personal information. Federal law requires that we tell you how we collect, share, and protect your personal information. We ask that you take a moment to review our privacy policy. Why We Obtain Information DiMeo Schneider & Associates gathers information to help us serve your financial needs, provide customer service, and fulfill legal and regulatory requirements. Any collection of personal information is used to support our normal business operations and to service our relationship with you. What Information We Collect The type of nonpublic personal information we collect and share depends on the product or service you have with us. This information can include your:

Social Security Number; Income; Account balances; and Payment history.

How We Collect Information Some of the nonpublic personal and financial information DiMeo Schneider & Associates collects comes from you. Other sources may include:

Information on applications and related forms, such as name, address, Social Security Number, assets and income; Information regarding your transactions with us, such as purchases, sales and account balances; Information from your employer, association, or benefit plan sponsor, such as name, address, Social Security Number, assets, and income.

How We Share Your Information DiMeo Schneider & Associates does not disclose nonpublic personal information about you to anyone, except as permitted or required by law. In the course of servicing your account, DiMeo Schneider & Associates may share information collected about you with other service providers such as mutual fund companies, broker/dealers, insurance companies, banks and investment firms to provide account maintenance and to effect transactions. We may also disclose your information to other organizations such as government agencies and law enforcement officials (for example, for tax reporting or under court order), or to other organizations and individuals with your consent (for example, to your attorney or tax professional). DiMeo Schneider & Associates does not disclose your nonpublic personal information, except as provided above. How Often DiMeo Schneider & Associates Notifies Clients DiMeo Schneider & Associates must notify you about our sharing practices when you open an account and each year while you are a customer. Protecting Your Information DiMeo Schneider & Associates maintains physical, electronic, and procedural safeguards to protect your nonpublic personal information to ensure that we are complying with our own policy, industry practices, and federal or state regulations. If you ever become an inactive client, we will continue to adhere to the privacy policies and practices described in this notice. Contacting DiMeo Schneider & Associates We welcome your questions regarding our privacy policy. Please feel free to contact Scott Blim via telephone at (312) 853-1000, via email at [email protected], or via regular mail at 500 West Madison, Suite 3855, Chicago, Il 60661.

DiMeo Schneider & Associates, L.L.C. reserves the right to change this Privacy Policy at any time, without notice, and will notify clients of any modifications on an annual basis.

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