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Tacoma Employes’ Retirement SystemInvestment Performance Analysis

September 30, 2009

1

Table of Contents

TACOMA EMPLOYES’ RETIREMENT SYSTEM3rd Quarter 2009

I. MARKET ENVIRONMENT

II. TOTAL FUND

III. U.S. EQUITYNorthern Trust Large Cap Core Tab 1Northern Trust S&P 500 Index (Non-Lending) Tab 2Northern Trust Large Cap Growth Tab 3Northern Trust Small Cap Core Tab 4BGI Alpha Tilts Tab 5INTECH Tab 6Research Affiliates Tab 7

IV. NON-U.S. EQUITYNorthern Trust EAFE Index Tab 8Northern Trust Emerging Markets Tab 9TT International Tab 10

V. U.S. CORE FIXED INCOME

2

Metropolitan West Tab 11

VI. HIGH YIELDMetropolitan West Tab 12

VII. REAL ESTATEAdelante Capital Management Tab 13

VIII. PRIVATE EQUITY

VIII. GLOSSARY

VVMarket EnvironmentOverview of Major Asset Classes

As of 9/30/09

1

Indices LegendReturns

Qtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs10 Year Std Dev

U.S. Equity (Wilshire 5000)U.S. Bonds (Barclays Aggregate)Non U.S. Equity (ACWI X US Net)Developed Equity (EAFE Net)Emerging Equity (Emg Mkts Net)Intl Bonds (Citi Non-US Gov)Treasury Bills (91 Day)Consumer Price Index

waxmzsnb

16.123.74

19.6919.4720.917.330.060.17

21.285.72

36.3528.9664.456.680.162.77

-6.4310.565.893.23

19.0716.070.37

-1.24

-4.836.41

-1.24-3.607.95

10.152.822.11

1.765.138.106.07

17.307.063.112.61

0.856.304.042.55

11.386.663.112.55

8.027.20

--4.17

--7.834.242.77

19.403.63

22.8922.1029.6310.000.972.25

Ret

urn

0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0 32.0 36.00.0

4.0

8.0

12.0

16.0

20.0

w

a

x

m

z

s

n b

Annual Standard Deviation

Last 10 Years(10/99 to 9/09)

Ret

urn

0.0 4.16667 8.33333 12.5 16.6667 20.8333 25.02.0

3.4

4.8

6.2

7.6

9.0

10.4

11.8

13.2

14.6

16.0w

a

m

s

n

b

Annual Standard Deviation

Previous 10 Years(10/89 to 9/99)

VVMarket EnvironmentU.S. Common Stocks

As of 9/30/09

2

ReturnsQtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs

IndicesStandard & Poor’s 500Wilshire 5000Wilshire 4500Wilshire US Large CapWilshire US Small CapWilshire Real Est. Secs StylesWilshire US Large GrowthWilshire US Large ValueWilshire US Small GrowthWilshire US Small Value Sectors (Wilshire 5000)Consumer DiscretionaryConsumer StaplesEnergyFinancialsHealth CareIndustrialsInformation TechnologyMaterialsTelecommunication ServicesUtilities

15.6016.1219.3915.2922.8635.93

15.4615.1319.9425.93

20.5611.4211.7323.2010.1221.3217.0922.597.096.69

19.2521.2830.7919.5035.9218.60

27.2211.9340.9231.22

35.9710.0913.6316.1813.0116.0046.5540.944.635.45

-6.93-6.43-3.87-7.06-0.79

-29.31

-2.27-11.81

0.60-2.18

0.86-5.29

-13.23-22.04-3.04

-12.658.69

-3.60-0.84-5.79

-5.43-4.83-2.87-5.05-2.15

-13.83

-2.15-8.03-0.97-3.30

-6.642.671.81

-18.81-2.26-5.830.762.07

-6.23-0.99

1.021.763.911.534.251.11

2.300.574.983.48

-1.166.34

10.25-7.152.400.964.235.302.086.84

-0.160.853.960.225.969.56

-2.052.312.818.42

--------------------

8.008.028.347.979.116.43

7.558.047.48

10.30

--------------------

Index Definitions Style Definitions (Wilshire Style Indices)

Large Co: Largest 750 companies in the Wilshire 5000

Small Co: Next 1750 companies in the Wilshire 5000

Value: Relatively low P/E and P/B ratios

Growth: Relatively high P/E and P/B ratios

Wilshire 5000: All publicly traded U.S. corporations

Wilshire 4500: All Wilshire 5000 companies excluding large S&P500 companies

Wilshire US Large Cap: Largest 750 publicly traded companies

Wilshire US Small Cap: Companies ranking between 750 and 2500 by market capitalization

VVMarket EnvironmentU.S. Common Stocks

Relative ReturnAs of 9/30/09

3

Small vs Large

09/99 09/00 09/01 09/02 09/03 09/04 09/05 09/06 09/07 09/08 09/090.70

0.82

0.95

1.08

1.20

1.33

1.45

1.58

1.70

1.83

1.95

Small Favored

Large Favored

Growth vs Value

09/99 09/00 09/01 09/02 09/03 09/04 09/05 09/06 09/07 09/08 09/090.55

0.62

0.70

0.77

0.85

0.92

1.00

1.07

1.15

1.23

1.30

Growth Favored

Value Favored

Based on Wilshire Style Indices

Market EnvironmentU.S. Fixed Income Indices

As of 9/30/09

4

Indices LegendReturns

Qtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20YrsCharacteristics (Current Qtr)

Eff MaturityEff Duration Yld to MatBarclays AggregateBarclays TreasuryBarclays Credit (Corporate)Barclays MortgageBarclays High YieldCitigroup High GradeBarclays UniversalBarclays US TIPS

alcmehut

3.742.107.482.32

14.2211.094.473.08

5.72-2.2914.865.29

48.985.307.969.48

10.566.27

19.499.86

22.3429.9010.905.67

6.416.865.847.415.316.016.125.61

5.135.214.725.926.145.615.164.79

6.306.226.536.446.257.796.427.51

7.207.077.537.298.238.36

----

6.566.719.885.116.92

25.126.649.11

4.435.276.253.084.23

12.244.453.39

3.552.134.583.89

10.315.653.970.00

Ret

urn

Duration

Current Qtr

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0-1.0

0.65

2.3

3.95

5.6

7.25

8.9

10.55

12.2

13.85

15.5

a

l

c

m

e

h

u

t

Ret

urn

Duration

Last Year

0.0 1.5 3.0 4.5 6.0 7.5 9.0 10.5 12.00.0

3.2

6.4

9.6

12.8

16.0

19.2

22.4

25.6

28.8

32.0

a

l

c

m

e

h

u

t

VVMarket EnvironmentU.S. Fixed Income Markets

Historical Spread Comparison to Treasuries As of 9/30/09

5

Cur

rent

Yie

ld S

prea

d

12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/080.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Description LegendCurrent Qtr

SpreadMedian Spread

(10 Years)Barclays MortgageGIC’s 5 YearBarclays Long AgenciesBarclays AAA Long CorpBarclays BAA Long CorpBarclays High Yield

2.454.161.231.122.788.41

2.022.890.501.022.25NA

VVMarket EnvironmentU.S. Fixed Income Markets

Yield Spread To Treasuries As of 9/30/09

6

Yie

ld to

Mat

urity

0.0 5.0 10.0 15.0 20.0 25.00.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Maturity

Current Treasury

Yie

ld to

Mat

urity

0.0 5.0 10.0 15.0 20.0 25.00.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Maturity

Treasury Yield Curve

1 Year Ago

Yie

ld to

Mat

urity

-1.0 4.0 9.0 14.0 19.0 24.0 29.0-1.0

0.3

1.6

2.9

4.2

5.5

6.8

8.1

9.4

10.7

12.0

a

l

cm

e

h

u

t

Maturity

Comparative Yields

Current Treasury

Description Legend Eff Maturity Yield to MatBarclays AggregateBarclays TreasuryBarclays CreditBarclays MortgageBarclays High YieldCitigroup High GradeBarclays UniversalBarclays U.S. TIPS

alcmehut

6.566.719.885.116.92

25.126.649.11

3.552.134.583.89

10.315.653.970.00

VVMarket EnvironmentInternational Markets

As of 9/30/09

7

ReturnsQtr Ytd 1Yr 3Yrs 5Yrs 10Yrs 20Yrs

10 Year Std Dev

Equity(in U.S. dollars)U.S. (S & P 500)Non U.S. (ACWI X U.S.) NetDeveloped (EAFE) NetEmerging (Emg Mkts) NetEuropePacificFranceGermanyJapanUnited Kingdom

Equity(in local currency)Non U.S. (ACWI X US) NetDeveloped (EAFE) NetEmerging (Emg Mkts) NetEuropePacificFranceGermanyJapanUnited Kingdom

% Change in Exchange RatesEuro vs DollarYen vs DollarPound vs Dollar

International Fixed IncomeCitigroup Non-US BondCitigroup World BondCitigroup Non-US HedgedBarclays Global Aggregate

15.6019.6919.4720.9122.9213.1526.5523.236.51

18.51

14.8214.8216.8220.195.34

21.4418.26-1.1622.03

4.217.76

-2.88

7.336.162.036.23

19.2536.3528.9664.4531.5624.0929.1422.499.27

33.97

26.5820.7051.4322.8417.1722.8116.487.93

20.44

5.151.25

11.24

6.684.572.247.85

-6.935.893.23

19.071.576.892.64

-3.09-0.57-1.34

1.92-1.6818.131.95

-7.50-1.36-6.87

-16.149.95

4.0618.57

-10.27

16.0713.787.87

13.51

-5.43-1.24-3.607.95

-3.64-3.57-2.860.84

-8.03-6.13

-4.17-7.217.72

-5.26-10.69-7.39-3.86

-16.13-1.15

4.899.66

-5.04

10.159.415.258.09

1.028.106.07

17.306.365.437.099.842.243.44

5.873.68

15.664.851.573.656.32

-1.926.02

3.314.24

-2.44

7.066.655.216.11

-0.164.042.55

11.383.290.943.773.54

-1.991.65

--0.39

--1.25

-1.010.540.31

-3.681.96

3.221.75

-0.29

6.666.705.456.42

8.00--

4.17--

8.15-0.027.917.66

-2.037.51

--2.72

--7.17

-2.016.065.97

-4.187.58

--2.24

-0.06

7.837.606.92

--

18.3622.8922.1029.6323.8521.1425.6731.5221.4321.37

--19.61

--20.9619.4423.9529.7321.2316.35

10.6111.4710.70

10.008.373.096.51

VVMarket EnvironmentU.S. Dollar Cost of Foreign Currencies

As of 9/30/09

8

12/99 03/01 06/02 09/03 12/04 03/06 06/07 09/08-0.40

-0.30

-0.20

-0.10

-0.00

0.10

0.20

0.30

0.40

0.50

Weaker Dollar

Stronger Dollar

Description LegendJapanese YenU.K. PoundEuroCanadian DollarChinese Yuan

VVTacoma Employes’ Retirement SystemAsset Allocation

Total FundQuarter Ended 9/30/09

1

Manager Name Equity

$(000) %

Bonds

$(000) %

Cash

$(000) %

Intl

Equity

$(000) %

Intl

Bonds

$(000) %

Real

Estate

$(000) %

Special

Invest

$(000) %

Other

$(000) %

As Allocated

To Manager

$(000) %Northern Trust Large Cap CoreNorthern Trust S&P 500 Non-LendingNorthern Trust Large Cap GrowthNorthern Trust Small Cap CoreBGI Alpha TiltsINTECHResearch AffiliatesDenver InvestmentEquity Composite

Metropolitan WestFixed Income Composite

Unallocated CashBGI TransitionManaged Short Term

Northern Trust EAFE IndexCurrency Overlay AccountNorthern Trust Emerging MarketsTT InternationalInt’l Equity Composite

Adelante Capital MgmntReal Estate Composite

S&P 500 Index FundHarbour Vest PartnersPrivate Equity Composite

Post Advisory GroupOther

55,40418,54424,06026,29321,27320,95326,026

0192,552

00

3737

00

00

91,434

91,434

00

6.02.02.62.92.32.32.80.0

21.0

0.00.0

0.00.00.0

0.00.00.00.00.0

0.00.0

10.00.0

10.0

0.00.0

0

195,437195,437

0

0

0

0

135,651135,651

0.00.00.00.00.00.00.00.00.0

21.321.3

0.00.00.0

0.00.00.00.00.0

0.00.0

0.00.00.0

14.814.8

00

000000

13,38813,388

7,2890

7,290

063

2,3542,417

2,8692,869

2,024

2,024

3,5573,557

0.00.00.00.00.00.00.00.00.0

1.51.5

0.80.00.8

0.00.00.00.30.3

0.30.3

0.20.00.2

0.40.4

0

0

0

77,996

40,70484,788

203,489

0

0

0

0.00.00.00.00.00.00.00.00.0

0.00.0

0.00.00.0

8.50.04.49.2

22.2

0.00.0

0.00.00.0

0.00.0

0

0

0

0

0

0

0

0.00.00.00.00.00.00.00.00.0

0.00.0

0.00.00.0

0.00.00.00.00.0

0.00.0

0.00.00.0

0.00.0

0

0

0

0

65,04065,040

0

0

0.00.00.00.00.00.00.00.00.0

0.00.0

0.00.00.0

0.00.00.00.00.0

7.17.1

0.00.00.0

0.00.0

0

00

0

0

0

3,4663,466

0

0.00.00.00.00.00.00.00.00.0

0.00.0

0.00.00.0

0.00.00.00.00.0

0.00.0

0.00.40.4

0.00.0

0

0

0

0

0

0

0

0.00.00.00.00.00.00.00.00.0

0.00.0

0.00.00.0

0.00.00.00.00.0

0.00.0

0.00.00.0

0.00.0

55,40418,54424,06026,29321,27320,95326,026

0192,552

208,825208,825

7,28937

7,327

77,99663

40,70487,142

205,906

67,90967,909

93,4583,466

96,925

139,208139,208

6.02.02.62.92.32.32.80.0

21.0

22.722.7

0.80.00.8

8.50.04.49.5

22.4

7.47.4

10.20.4

10.6

15.215.2

VVTacoma Employes’ Retirement SystemAsset Allocation


2

Manager Name Equity

$(000) %

Bonds

$(000) %

Cash

$(000) %

Intl

Equity

$(000) %

Intl

Bonds

$(000) %

Real

Estate

$(000) %

Special

Invest

$(000) %

Other

$(000) %

As Allocated

To Manager

$(000) %

As Invested by ManagersAs Allocated to ManagersTotal Fund Policy Targets

284,023192,552192,917

30.921.021.0

331,087208,825229,663

36.022.725.0

31,5457,327

0

3.40.8

203,489205,906192,917

22.222.421.0

000

00

65,04067,90973,492

7.17.48.0

3,46696,92591,865

0.410.610.0

0139,208137,798

015.215.0

918,651918,651918,651

100.0100.0100.0

VVTacoma Employes’ Retirement SystemAsset Allocation - as Invested by Managers

Total FundQuarters Ended 9/30/09

3

Domestic EquityIntl EquityDomestic FixedReal EstateCash & EquivSpecial InvestOther

0

10

20

30

40

50

60

70

80

90

100

Actual (Target) 12/06 03/07 06/07 09/07 12/07 03/08 06/08 09/08 12/08 03/09 06/09 09/09Domestic Equity %Intl Equity %Domestic Fixed %Real Estate %Cash & Equiv %Special Invest %Other % Total Value ($mil)

39.9 (40.0)15.6 (15.0)18.3 (20.0)15.2 (15.0)

2.1 (0.0)

8.9 (10.0)

1121.7

39.9 (40.0)15.9 (15.0)18.1 (20.0)15.5 (15.0)

1.3 (0.0)

9.2 (10.0)

1138.4

41.4 (40.0)15.4 (15.0)19.5 (20.0)13.6 (15.0)

0.9 (0.0)

9.2 (10.0)

1163.9

41.3 (40.0)15.8 (15.0)17.8 (20.0)13.2 (15.0)

3.1 (0.0)

8.7 (10.0)

1183.8

41.3 (40.0)16.1 (15.0)18.2 (20.0)11.7 (15.0)

3.6 (0.0)

9.0 (10.0)

1149.5

39.5 (40.0)15.6 (15.0)18.4 (20.0)12.6 (15.0)

4.1 (0.0)

9.8 (10.0)

1079.1

39.7 (40.0)15.8 (15.0)20.4 (20.0)12.4 (15.0)

1.7 (0.0)

10.1 (10.0)

1058.0

39.8 (40.0)13.2 (15.0)24.8 (20.0)12.7 (15.0)

-0.6 (0.0)

10.2 (10.0)

958.0

38.3 (40.0)12.8 (15.0)27.7 (20.0)9.8 (15.0)0.4 (0.0)

11.0 (10.0)

767.4

27.9 (21.0)21.2 (21.0)27.7 (25.0)

5.5 (8.0)2.2 (0.0)

0.0 (10.0)15.6 (15.0)

701.7

28.3 (21.0)22.6 (21.0)37.8 (25.0)

6.3 (8.0)4.5 (0.0)

0.4 (10.0)0.0 (15.0)

805.6

30.9 (21.0)22.2 (21.0)36.0 (25.0)

7.1 (8.0)3.4 (0.0)

0.4 (10.0)0.0 (15.0)

918.7

VVTacoma Employes’ Retirement SystemSources of Fund Growth


4

Manager Name

BeginningValue$(000)

NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)Northern Trust Large Cap CoreNorthern Trust S&P 500 N\LNorthern Trust Large Cap GrowthNorthern Trust Small Cap CoreBGI Alpha TiltsINTECHResearch AffiliatesDenver InvestmentEquity Composite

Metropolitan WestFixed Income Composite

Unallocated CashBGI TransitionManaged Short Term

Northern Trust EAFE IndexCurrency Overlay AccountNorthern Trust Emerging MarketsTT InternationalInt’l Equity Composite

47,88515,65021,10622,03318,44118,26521,458

16164,853

182,679182,679

9,338147

9,484

67,32247

46,72071,235

185,324

5036

2500

-1622

11,13311,133

9,785-119

9,666

-2,4632,478

-12,987216

-12,757

000000000

00

11,9070

11,907

000

1919

5036

251630

58

133133

000

150

13216243

7,5192,8942,9544,2602,8322,7054,571

027,735

15,14615,146

731083

13,152-2,4626,984

15,92633,600

55,40418,54424,06026,29321,27320,95326,026

0192,552

208,825208,825

7,28937

7,327

77,99663

40,70487,142

205,906

15.6918.4913.9819.3115.2214.7221.29

NA16.79

7.477.47

0.70NA

19.51NA

20.6822.0520.10

VVTacoma Employes’ Retirement SystemSources of Fund Growth


5

Manager Name


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)Adelante Capital MgmntReal Estate Composite

S&P 500 Index FundHarbour Vest PartnersPrivate Equity Composite

Post Advisory GroupHigh Yield Composite

Total Fund

51,94751,947

81,0483,287

84,335

127,012127,012

805,635

7171

10400410

102102

8,647

00

0149149

00

12,075

7171

102029

102102

636

15,96215,962

12,410-51

12,358

12,19612,196

117,080

67,90967,909

93,4583,466

96,925

139,208139,208

918,651

30.5930.59

15.69-2.0815.01

9.759.75

15.22

VVTacoma Employes’ Retirement SystemFund Return TableQuarter Ended 9/30/09

6

Manager 1 Quarter 2 Quarters 3 Quarters 1 Year 3 Years 5 YearsSince

9/30/99Inception

DateInception

ReturnEquity CompositeInt’l Equity CompositeFixed Income CompositeHigh Yield CompositeReal Estate CompositePrivate Equity CompositeUnallocated CashTotal Fund Tacoma Expected Return Policy Index Tacoma Actuarial Return

Indices Standard & Poor’s 500 Wilshire 5000 MSCI EAFE Index (N) MSCI ACWI X US (N) Barclays Aggregate Citigroup LPF ML High Yld II Tot Ret Wilshire Real Est. Secs Wilshire REIT Index Consumer Price Index 91-Day Treasury Bill

16.7920.107.479.75

30.5915.010.70

15.222.04

14.561.88

15.6016.1219.4719.693.745.46

14.8235.9335.420.130.06

35.7348.5213.2622.9172.4433.681.88

33.714.12

33.813.80

34.0135.6149.8552.715.606.44

41.4479.3078.291.530.11

19.5125.1413.8832.7216.30

1.9326.346.24

21.195.76

19.2521.2828.9636.355.724.50

48.5418.6017.812.740.16

-7.72-3.1213.1611.27

-31.53

2.152.218.40

-1.807.75

-6.93-6.433.235.89

10.5614.1722.36

-29.31-29.26-1.280.37

-5.72-4.617.164.58

-16.74

-10.26-1.048.40

-2.097.75

-5.43-4.83-3.60-1.246.417.415.21

-13.83-13.70

2.102.82

1.606.136.07

-0.47

-4.985.218.403.847.75

1.021.766.078.105.136.016.041.111.172.613.11

2.852.296.76

8.99

-1.036.258.504.297.77

-0.160.852.554.046.307.326.039.569.732.553.11

9/30/84 3/31/88 9/30/81 9/30/05 3/31/88 3/31/09 9/30/84 6/30/79 6/30/79

6/30/79

Since 6/30/79 6/30/79 6/30/79 6/30/79 6/30/79 6/30/79 6/30/79 6/30/79 6/30/79 6/30/79 6/30/79

10.514.399.995.003.66

33.683.179.259.68

7.30

11.1711.059.68

8.55

10.3411.063.686.17

VVTacoma Employes’ Retirement SystemSources of Portfolio Growth


7

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/7912/79

03/8006/8009/8012/80198003/8106/8109/8112/81198103/8206/8209/8212/82198203/8306/8309/8312/83198303/8406/84

NANA

NANANANANANANANANANANANANANANANANANANANANANA

NANA


NANA


NANA


NANA


NANA

NANANANANANANANANANANANANANANANANANANANANA

101,646

0.64-3.77

-8.4817.88-3.294.999.54

-0.60-2.32-7.958.51

-3.021.471.96

14.1811.1531.305.635.57

-2.32-1.197.63

-3.30-2.80



8

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/8412/84198403/8506/8509/8512/85198503/8606/8609/8612/86198603/8706/8709/8712/87198703/8806/8809/8812/88198803/8906/89

101,646108,864

NA115,098120,277130,537130,762115,098143,301156,140161,029156,826143,301164,161180,295188,539184,040164,161172,000180,196187,429188,753172,000193,484200,688

NA1,633

NA-2,168

-300961

0-1,507

000000

-53-7,3387,143-249

-1,157-58228

-1,570-2,5563,4933,773

NANANANANANANANANANANANANANANANANANANANANANANA

4,3933,864

NANANANANANANANANANANANANANANANANANANANANANANA4146

NA4,601

NA7,347

10,560-735

12,53929,71112,8384,889

-4,2037,335

20,86016,1348,2972,839

-19,1828,0879,3537,2911,0966,300

24,0408,145

12,176

108,864115,098115,098120,277130,537130,762143,301143,301156,140161,029156,826164,161164,161180,295188,539184,040172,000172,000180,196187,429188,753193,484193,484200,688212,728

4.604.893.124.777.85

-0.3910.2624.109.472.92

-2.214.73

15.399.860.641.63

-5.925.714.393.950.412.04

11.184.146.03



9

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/8912/89198903/9006/9009/9012/90199003/9106/9109/9112/91199103/9206/9209/9212/92199203/9306/9309/9312/93199303/9406/94

212,728227,759193,484231,889222,330233,938211,599231,889225,340250,022249,138265,669225,340284,593276,794277,700287,806284,593306,908320,640332,869350,306306,908359,243348,337

3,7593,896

14,9213,8384,1217,5424,438

19,9396,4214,3064,3455,418

20,4904,4344,7974,714

13,72227,6674,557

10,8345,0846,153

26,6284,8455,691

3,4962,616

14,3694,8304,0406,8313,323

19,0247,1744,2494,4102,966

18,7985,1394,2034,2918,507

22,1408,089

10,9834,8595,069

29,0014,7735,154

5149

1864447430

134093

62740

191173216580232295302317

1,146310387

14,8192,899

38,039-8,52311,574

-23,00612,625-7,33125,435

-93316,59916,53557,636-7,094

5039,856

14,10317,36817,49612,67417,5148,171

55,855-10,668-3,303

227,759231,889231,889222,330233,938211,599225,340225,340250,022249,138265,669284,593284,593276,794277,700287,806306,908306,908320,640332,869350,306359,243359,243348,337345,185

6.951.33

19.66-3.795.19

-9.765.93

-3.2610.80-0.416.686.18

24.99-2.470.113.474.665.735.683.865.172.24

18.02-3.04-1.06



10

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/9412/94199403/9506/9509/9512/95199503/9606/9609/9612/96199603/9706/9709/9712/97199703/9806/9809/9812/98199803/9906/99

345,185357,362359,243356,377375,714399,275422,443356,377446,312453,553463,080470,167446,312489,940477,431530,648560,925489,940557,727594,835593,550543,267557,727601,518594,669

6,1745,781

22,4925,2775,5195,2185,533

21,5475,7105,9706,5556,280

24,5154,9855,3615,2087,794

23,3494,8955,2424,1366,536

20,8095,2208,992

4,7254,018

18,6706,3155,1475,2073,906

20,5766,6135,9506,6854,285

23,5337,6276,3907,4007,271

28,6898,8795,3468,1115,492

27,8279,279

10,424

266312

1,275329341362371

1,404382391397405

1,576392411426479

1,708463464430442

1,800562532

10,994-2,436-5,41320,70423,53023,51922,61490,3678,5269,8997,614

18,18344,222-9,47554,65732,895-3,24374,83441,555

-716-45,87857,64952,610-2,22834,290

357,362356,377356,377375,714399,275422,443446,312446,312453,553463,080470,167489,940489,940477,431530,648560,925557,727557,727594,835593,550543,267601,518601,518594,669626,995

3.11-0.77-1.855.756.175.805.26

25.031.832.101.553.589.36

-2.0311.386.13

-0.6515.077.43

-0.19-7.4210.9410.13-0.165.66



11

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/9912/99199903/0006/0009/0012/00200003/0106/0109/0112/01200103/0206/0209/0212/02200203/0306/0309/0312/03200303/0406/04

626,995606,419601,518692,561723,219709,121726,379692,561712,912669,381694,336645,147712,912712,676693,758664,083589,443712,676613,142601,089682,181713,638613,142783,146817,369

6,0986,581

26,8916,3716,5046,8356,240

25,9505,5155,1606,044

36,10652,8246,1245,4586,2175,660

23,4606,0568,9269,687

10,40135,0707,1708,658

7,8435,270

32,81610,1806,7967,7636,245

30,9849,4727,9128,3186,518

32,22040,2608,4608,1495,999

62,86810,38211,46412,08012,18346,10912,4439,272

410620

2,125504679702658

2,542636640636627

2,539577365297

01,238

159339366455

1,319392517

-18,42085,45199,09334,970

-13,12618,888

-12,80527,927

-38,93828,348

-46,27938,567

-18,30215,794

-26,308-72,41224,038

-58,888-7,56883,96934,21771,744

182,36239,888-9,228

606,419692,561692,561723,219709,121726,379712,912712,912669,381694,336645,147712,676712,676693,758664,083589,443613,142613,142601,089682,181713,638783,146783,146817,369807,011

-3.0114.0516.70

5.01-1.912.57

-1.863.69

-5.584.15

-6.785.87

-2.952.24

-3.61-11.07

4.11-8.76-1.2613.924.929.99

29.825.06

-1.19



12

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/0412/04200403/0506/0509/0512/05200503/0606/0609/0612/06200603/0706/0709/0712/07200703/0806/0809/0812/08200803/0906/09

807,011808,184783,146893,229862,052894,912931,754893,229959,227

1,020,3371,006,0031,047,593

959,2271,121,7091,138,4081,163,8501,183,7671,121,7091,149,4661,079,1131,057,969

958,0261,149,466

767,447701,709

4,45110,66530,9447,4747,7578,730

12,98836,95011,44516,03413,28916,17856,94613,34916,72216,42121,89568,38714,4589,296

10,08213,66147,4979,814

12,958

9,08410,88541,68413,15110,41711,46812,81347,84917,74219,18017,27016,83071,02220,42619,61621,68723,30285,03223,25613,42315,29014,64166,61019,04012,224

440563

1,912622619708671

2,620871907923

1,1263,829

922813

1,004894

3,632815776

1,060702

3,353230445

6,24685,828

122,734-24,87836,13840,28827,97079,51868,279

-10,28046,49475,894

180,38724,69829,14926,186

-32,00048,034

-60,739-16,242-93,675

-188,897-359,553-56,283103,637

808,184893,229893,229862,052894,912931,754959,227959,227

1,020,3371,006,0031,047,5931,121,7091,121,7091,138,4081,163,8501,183,7671,149,4661,149,4661,079,1131,057,969

958,026767,447767,447701,709805,635

0.7310.5715.62-2.864.134.432.938.727.05

-1.104.547.14

18.592.132.482.18

-2.783.97

-5.21-1.45-8.91

-19.10-31.15-5.5116.05



13

Quarter


NetContrib$(000)

Distrib &Adm Fees

$(000)

InvestFees

$(000)

InvestGain/Loss

$(000)

EndingValue$(000)

Time WtdReturn

(%)09/09

TotalPeriod

805,635

101,646

8,647

656,016(Sum)

12,075

783,160(Sum)

636

36,301(Sum)

117,080

973,232(Sum)

918,651

918,651

15.22

9.25(Annualized)

VVTacoma Employes’ Retirement SystemTotal Fund Attribution


14

CompositeAllocation

Policy Actual

Returns

Policy Actual

Total Fund Return ContributionStrategicPolicy

ActualAllocation

ActiveMngmnt

ActualReturn

Domestic EquityDomestic Fixed IncomeHigh YieldInternational EquityEmerging MarketsInternational Fixed IncomeReal EstateCash Alternative InvestmentsHedge FundOtherTotal Fund

21.00 25.00 15.00 21.00 0.00 0.00 8.00 0.00

10.00 0.00 0.00

100.00

20.46 22.68 15.77 23.00 0.00 0.00 6.45 1.18 10.47 0.00 0.00

100.00

15.60 3.74 14.82 17.76

35.42

15.68

14.56

16.797.479.75

20.10

30.590.06

15.01

15.22

3.28 0.94 2.22 3.73 0.00 0.00 2.83 0.00 1.57 0.00 0.00 14.56

-0.08 -0.09 0.11 0.34 0.00 0.00 -0.53 0.00 0.07 0.00 0.00 -0.18

0.24 0.84 -0.78 0.52 0.00 0.00 -0.30 0.00 -0.07 0.00 0.00 0.73

3.44 1.69 1.54 4.62 0.00 0.00 1.97 0.00 1.57 0.00 0.00 15.22

Composite IndicesEquity CompositeFixed Income CompositeHigh Yield CompositeInt’l Equity CompositeReal Estate CompositePrivate Equity Composite

Standard & Poor’s 500Barclays AggregateML High Yld II Tot RetInternational Equity Custom BenchmarkWilshire REIT IndexPrivate Equity Custom Benchmark

VVTacoma Employes’ Retirement SystemTotal Fund Attribution - Historical Summary


15

QuarterStrategicPolicy

ActualAllocation

ActiveManagement

ActualReturn

12/0220023/036/039/03

12/0320033/046/049/04

12/0420043/056/059/05

12/0520053/066/069/06

12/0620063/076/079/07

4.67

-1.84 11.46 4.30 8.74 24.09 4.36 -0.98 1.24 8.76 13.77 -2.19 3.52 3.77 2.18 7.35 5.34 -0.74 5.38 6.35 17.18 1.96 2.26 2.33

-0.40

0.04 -0.20 0.07 0.21 0.12 0.05 -0.05 -0.00 0.34 0.33 -0.05 -0.13 0.17 0.07 0.06 0.01 0.01 -0.11 -0.32 -0.41 0.02 -0.19 -0.00

-0.15

0.55 2.40 0.52 0.96 4.49 0.63 -0.16 -0.50 1.35 1.32 -0.64 0.71 0.47 0.68 1.22 1.61 -0.36 -0.70 1.05 1.59 0.15 0.41 -0.15

4.11

-1.26 13.92 4.92 9.99 29.82 5.06 -1.19 0.73 10.57 15.62 -2.86 4.13 4.43 2.93 8.72 7.05 -1.10 4.54 7.14 18.59 2.13 2.48 2.18

VVTacoma Employes’ Retirement SystemTotal Fund Attribution - Historical Summary


16

QuarterStrategicPolicy

ActualAllocation

ActiveManagement

ActualReturn

12/0720073/086/089/08

12/0820083/096/099/09

-2.98 3.52 -4.70 -2.09 -6.96 -18.97 -29.66 -9.43 16.80 14.56

0.46 0.28 0.14 0.26 -0.02 2.34 2.74 6.80 -0.49 -0.18

-0.28 0.13 -0.67 0.38 -2.07 -2.96 -5.25 -2.97 -0.22 0.73

-2.78 3.97 -5.21 -1.45 -8.91 -19.10 -31.15 -5.51 16.05 15.22


1


9/30/99Inception

DateInception

ReturnNorthern Trust Large Cap Core Standard & Poor’s 500

Northern Trust S&P 500 Non-Lending Standard & Poor’s 500

Northern Trust Large Cap Growth Russell 1000 Growth

Northern Trust Small Cap Core Russell 2000

BGI Alpha Tilts Standard & Poor’s 500 Standard & Poor’s 500 + 1%

INTECH Standard & Poor’s 500 Standard & Poor’s 500 + 1%

Indices Standard & Poor’s 500 Wilshire 5000 Wilshire 4500 Consumer Price Index 91-Day Treasury Bill

15.6915.60

18.4915.60

13.9813.96

19.3119.28

15.2215.6015.85

14.7215.6015.85

15.6016.1219.390.130.06

34.6034.01

32.6132.57

44.0243.96

33.3534.0134.51

32.2934.0134.51

34.0135.6144.231.530.11

19.7119.25

22.4822.44

17.6519.2520.00

17.0819.2520.00

19.2521.2830.792.740.16

-6.79-6.93

-9.40-9.54

-8.39-6.93-5.93

-8.37-6.93-5.93

-6.93-6.43-3.87-1.280.37

-5.65-5.43

-4.59-4.57

-5.43-4.83-2.872.102.82

0.871.02

2.392.42

1.021.763.912.613.11

-0.20-0.16

4.874.88

-0.160.853.962.553.11

12/31/9012/31/90

6/30/09 6/30/09

3/31/09 3/31/09

12/31/9012/31/90

3/31/07 3/31/07 3/31/07

3/31/07 3/31/07 3/31/07

Since 9/30/84 9/30/84 9/30/84 9/30/84 9/30/84

8.578.62

18.4915.60

32.6132.57

10.049.98

-10.87-9.11-8.11

-9.49-9.11-8.11

10.3610.1810.002.934.93


2


9/30/99Inception

DateInception

ReturnResearch Affiliates Standard & Poor’s 500 Standard & Poor’s 500 + 1%

Equity Composite Standard & Poor’s 500

Indices Standard & Poor’s 500 Wilshire 5000 Wilshire 4500 Consumer Price Index 91-Day Treasury Bill

21.2915.6015.85

16.7915.60

15.6016.1219.390.130.06

41.6934.0134.51

35.7334.01

34.0135.6144.231.530.11

22.5919.2520.00

19.5119.25

19.2521.2830.792.740.16

-5.15-6.93-5.93

-7.72-6.93

-6.93-6.43-3.87-1.280.37

-5.72-5.43

-5.43-4.83-2.872.102.82

1.601.02

1.021.763.912.613.11

2.85-0.16

-0.160.853.962.553.11

3/31/07 3/31/07 3/31/07

9/30/84 9/30/84

Since 9/30/84 9/30/84 9/30/84 9/30/84 9/30/84

-9.25-9.11-8.11

10.5110.36

10.3610.1810.002.934.93

VVTacoma Employes’ Retirement SystemPerformance ComparisonTotal Returns of Equity Portfolios

Periods Ended 9/30/09

3

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Ω θf

ϑ *s w

Ω θ

f

ϑ*s w

Ωf

ϑ*s

w

Ωfϑ *s w

Ωfϑ *s w

Ω f*s w

Ω f*s w Ωf

*s w

Med75th95th

25th

5th

Rat

e of

Ret

urn

Ω NT Large Cap Core NT S&P 500 Non-Lending

θ NT Large Cap Growthf NT Small Cap Core

BGI Alpha Tiltsϑ INTECH

Research Affiliates* Equity Composites Standard & Poor’s 500 w Wilshire 5000 MedianNumber of Funds

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

15.69 (57)18.49 (30)13.98 (77)19.31 (24)15.22 (63)14.72 (69)21.29 (13)16.79 (45)15.60 (58)16.12 (53)

16.432010

34.60 (60)

32.61 (70)44.02 (25)33.35 (66)32.29 (71)41.69 (32)35.73 (54)34.01 (63)35.61 (55)

36.872010

19.71 (70)

22.48 (60)17.65 (78)17.08 (79)22.59 (59)19.51 (71)19.25 (72)21.28 (65)

25.162010

-6.79 (64)

-9.40 (78)-8.39 (74)-8.37 (74)-5.15 (54)-7.72 (70)-6.93 (65)-6.43 (62)

-4.461996

-15.07 (73)

-12.10 (44)-15.53 (76)-14.12 (64)-13.99 (63)-15.48 (76)-14.78 (70)-14.17 (64)

-12.65

1945

-5.65 (77)

-4.59 (66)

-5.72 (78)-5.43 (75)-4.83 (69)

-3.211868

0.87 (86)

2.39 (63)

1.60 (77)1.02 (84)1.76 (74)

3.23

1676

-0.20 (92)

4.87 (51)

2.85 (70)-0.16 (92)0.85 (86)

5.14

1099

VVTacoma Employes’ Retirement SystemEquity Fund Structural Characteristics

Equity CompositeQuarter Ended 9/30/09

4

Manager $(000) # %

Equity %Cash

%Other

SectorsENR MAT IND CDI CST HTH FIN INF TEL UTI

Turn-Over

Northern Trust Large Cap CoreNorthern Trust S&P 500 N/LNorthern Trust Large Cap GrowthNorthern Trust Small Cap CoreBGI Alpha TiltsINTECHResearch AffiliatesEquity Composite

Standard & Poor’s 500Russell 1000 GrowthRussell 2000

55,40418,54424,06026,29321,27320,95326,026

192,552

NANANA

501501602

2,630499429

1,0002,972

500625

2,012

100100100100100100100100

100100100

00000000

000

00000000

000

1212

45

11121111

1245

44443343

444

10101016108

109

101016

99

1014

9121212

91014

121216

31112

811

1216

3

1313171414129

11

131714

1515

52015142918

155

20

1919322020171016

193219

33113534

311

44133645

413

NANANANANANANANA

NANANA

VVTacoma Employes’ Retirement SystemEquity Fund Investment Characteristics

Equity CompositeQuarter Ended 9/30/09

5

ManagerGrowth

5 Yrs EPS 5 Yrs DivAverage $

Market Cap(Mil)Valuation

P/E P/B YLD ROERisk

Beta DBT/EQT R SquareNorthern Trust Large Cap CoreNorthern Trust S&P 500 N/L

Northern Trust Large Cap GrowthNorthern Trust Small Cap CoreBGI Alpha TiltsINTECHResearch AffiliatesEquity Composite

Standard & Poor’s 500Russell 1000 GrowthRussell 2000

9.59.5

13.73.89.29.30.77.2

9.714.2

5.5

6.06.05.31.75.66.24.75.7

6.05.31.7

77,21477,21470,014

92076,05472,47163,29469,334

77,24570,058

920

25.525.524.1NM28.924.768.329.5

25.524.2NM

1.91.93.61.51.72.01.01.6

1.93.61.5

2.02.01.61.21.92.21.92.1

2.01.61.2

20.520.527.1

8.418.221.612.819.4

21.746.322.5

1.001.000.921.251.010.941.261.02

1.000.951.44

0.480.480.410.320.450.490.610.51

0.730.570.58

0.980.980.960.850.970.980.910.97

1.000.960.85

P/B methodology changed 2Q03. See Glossary.

VVTacoma Employes’ Retirement SystemEquity Fund Style Map

Quarter Ended 9/30/09Growth/Value vs Size

6

-150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150-150

-125

-100

-75

-50

-25

0

25

50

75

100

125

150

Ω θ

f

ϑ*w

s u

zW

ilshi

re50

00

Wilshire5000

Large CapValue

Small CapValue

Large Cap Growth

Small Cap Growth

Lar

geSI

ZE

Smal

l

Value VALUE/GROWTH Growth

Name Legend Growth-Value Size Name Legend Growth-Value SizeNorthern Trust Large Cap CoreNorthern Trust S&P 500 N/LNorthern Trust Large Cap GrowthNorthern Trust Small Cap CoreBGI Alpha TiltsINTECHResearch Affiliates

Ω

θf

ϑ

-7.96-7.9556.43

3.68-6.40

-20.45-50.29

104.19104.1996.42

-142.5799.9094.8680.34

Equity CompositeWilshire 5000Standard & Poor’s 500Russell 1000 GrowthRussell 2000

*wsuz

-25.03-5.65

-15.4356.26

2.42

88.1472.22

101.5495.84

-141.65

VVTacoma Employes’ Retirement SystemRisk Return

5 Years Ending 9/30/09

7

Ann

ualiz

ed R

ate

of T

otal

Ret

urn

13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Ω

f

*w

s

u

z

Wil5

000

Ris

k

Wil5000 Return

Historical Standard Deviation of Total Return

Description

Legend

TotalReturn

StandardDeviation

SharpeRatio

Northern Trust Large Cap CoreNorthern Trust Small Cap CoreEquity CompositeWilshire 5000 Standard & Poor’s 500 Russell 1000 Growth Russell 2000

Ωf*wsuz

0.872.391.601.761.021.872.42

18.1222.4619.2518.4717.8917.8522.46

-0.12-0.03-0.08-0.07-0.12-0.07-0.03

VVTacoma Employes’ Retirement SystemGrowth of One Dollar

Northern Trust Large Cap CoreQuarter Ended 9/30/09

1

Val

ue

9/91 9/92 9/93 9/94 9/95 9/96 9/97 9/98 9/99 9/00 9/01 9/02 9/03 9/04 9/05 9/06 9/07 9/08 9/090.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

LegendReturn

3 Years Inception 12/31/90$

ValueTotalStandard & Poor’s 500

-5.65-5.43

8.578.62

4.684.72


Northern Trust S&P 500 Non-LendingQuarter Ended 9/30/09

1

Val

ue

6/09 9/090.90

1.00

1.10

1.20

LegendReturn

1 Quarter Inception 6/30/09$


18.4915.60

18.4915.60

1.181.16

VVTacoma Employe’s Retirement SystemGrowth of One Dollar

Northern Trust Large Cap GrowthQuarter Ended 9/30/09

1

Val

ue

3/09 6/09 9/090.90

1.00

1.10

1.20

1.30

1.40

LegendReturn

2 Quarters Inception 3/31/09$

ValueTotalRussell 1000 Growth

32.6132.57

32.6132.57

1.331.33


Northern Trust Small Cap CoreQuarter Ended 9/30/09

1

Val

ue

9/91 9/92 9/93 9/94 9/95 9/96 9/97 9/98 9/99 9/00 9/01 9/02 9/03 9/04 9/05 9/06 9/07 9/08 9/090.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

LegendReturn


ValueTotalRussell 2000

-4.59-4.57

10.049.98

6.015.95


BGI Alpha TiltsQuarter Ended 9/30/09

1

Val

ue

3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/090.50

0.60

0.70

0.80

0.90

1.00

1.10

LegendReturn

2 Years & 2 Quarters Inception 3/31/07$


-10.87-9.11

-10.87-9.11

0.750.79

VVTacoma Employes’ Retirement SystemEquity Fundamental Drift Style Map

3/31/07 - 9/30/09Growth/Value vs Size over Time

2

-150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150-150

-125

-100

-75

-50

-25

0

25

50

75

100

125

150

Wils

hire

5000

Wilshire5000

Large CapValue

Small CapValue

Large Cap Growth

Small Cap Growth

Lar

geSI

ZE

Smal

l


Date

BGI Alpha Tilts

Growth-Value Size

Standard & Poor’s 500

Growth-Value Size 3/31/07 6/30/07 9/30/0712/31/07 3/31/08 6/30/08 9/30/0812/31/08 3/31/09 6/30/09 9/30/09

-15.29-23.43-19.66-13.57-16.91-7.73-8.43

-11.74-23.69-17.97-6.40

100.11102.24101.84100.32101.66101.3399.83

102.14103.0498.8999.90

-9.31-9.80-8.89-4.08-5.69-0.02-5.84-7.35

-13.89-13.40-15.43

106.38102.71106.36105.19106.09105.99105.25104.39105.26103.29101.54

VVTacoma Employes’ Retirement SystemEquity Structural Characteristics


3

Quarter $(000)#

Stocks %

Equity %

Cash %

OtherSectors

ENR MAT IND CDI CST HTH FIN INF TEL UTLTurn-Over

03/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/09


54,81257,63057,66155,22250,13549,74045,08035,13715,91218,44121,273

NA

218200281340297285304388422387499

500

100100100100100100100100100100100

100

00000000000

0

00000000000

0

1113111213161313131211

12

44223433333

4

1112131211109

11109

10

10

988778978

109

9

109

111113121413131211

12

1111131312131416161414

13

2222181816131413111315

15

1615181816171616181920

19

34444433433

3

43344435543

4

NANANANANANANANANANANA

NAENRMATIND

- Energy- Materials- Industrials

CDICSTHTH

- Consumer Discretionary- Consumer Staples- Health Care

FININFTELUTL

- Financials- Information Technology- Telecommunication Services - Utilities

*Wilshire began using GICS sectors starting 1q03.

VVTacoma Employes’ Retirement SystemEquity Investment Characteristics


4

QuarterGrowth



P/E P/B YLD ROERisk

Beta Debt/Eqt R Square03/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/09


16.218.115.515.115.216.415.615.613.410.29.2

9.7

5.86.25.95.86.56.36.66.36.55.95.6

6.0

94,839103,241110,562103,71093,68090,53684,70080,08467,44169,18676,054

77,245

14.614.816.016.816.016.714.511.313.718.228.9

25.5

2.72.72.82.72.42.32.01.71.61.71.7

1.9

1.81.81.81.92.12.22.42.92.92.31.9

2.0

20.521.921.822.320.921.021.320.922.319.918.2

21.7

1.051.061.011.021.021.011.031.010.991.011.01

1.00

0.360.370.380.390.410.350.370.370.420.420.45

0.73

0.960.970.970.960.960.940.960.980.980.980.97

1.00


VVTacoma Employes’ Retirement SystemEquity Fund Investment Characteristics - Historical Comparison

BGI Alpha Tilts vs. Standard & Poor’s 500

5

P/E Ratio

0.0

11.0

22.0

33.0P/B Ratio

0.0

2.0

4.0

6.0

Dividend Yield

0.0

2.0

4.0

6.0Market Cap (Bil)

0.0

41.0

82.0

123.0

IndexPortfolio

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index16.8517.56

16.0417.06

16.6917.50

14.4715.34

11.3311.56

13.7313.17

18.2316.70

28.8725.54

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index2.742.76

2.352.38

2.282.28

2.042.23

1.671.73

1.561.61

1.661.75

1.691.91

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index1.901.98

2.112.19

2.152.28

2.362.44

2.952.99

2.902.81

2.252.35

1.922.04

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index103.71108.01

93.6896.22

90.5490.17

84.7086.58

80.0879.48

67.4467.35

69.1971.38

76.0577.24

VVTacoma Employes’ Retirement SystemEquity Return Analysis


6

Quarter Index*Total

ReturnEquityReturn

Net Management Effect

TimingSector

WeightingStock

Selection Trading Total06/0709/0712/07

03/0806/0809/0812/08200803/0906/0909/09

FromInceptionAvg UpMarketsAvg DownMarkets

6.282.05

-3.33

-9.46-2.72-8.37

-21.96-37.01-11.0115.9315.60

-9.11

9.96

-9.47

5.14-0.04-4.32

-9.30-0.88-9.45

-22.13-36.61-11.7715.7415.22

-10.87

9.02

-9.64

5.140.05

-4.23

-9.21-0.79-9.37

-22.05-36.37-11.9815.9015.36

-10.66

9.11

-9.61

-0.00-0.09-0.09

-0.08-0.09-0.09-0.08-0.240.21

-0.16-0.14

-0.21

-0.10

-0.04

0.210.320.30

-0.160.080.150.490.44

-0.04-0.060.05

0.53

-0.79-2.65-1.35

0.451.74

-0.80-0.490.49

-0.410.85

-0.18

-1.41

-0.560.330.14

-0.050.12

-0.35-0.10-0.29-0.52-0.82-0.12

-0.68

-1.14-2.09-0.99

0.161.85

-1.09-0.180.40

-0.76-0.19-0.38

-1.76

-0.95

-0.17Index* : Standard & Poor’s 500

VVTacoma Employes’ Retirement SystemEquity Sector Attribution Analysis


7

SectorPortfolio

Mkt Val % ReturnStandard & Poor’s 500

Mkt Val % ReturnSelection

Stock Sector TotalMaterialsInformation TechnologyTelecom ServicesEnergyConsumer DiscretionaryUtilitiesIndustrialsConsumer StaplesFinancialsHealth CareQuarter Total

2.9319.303.10

12.239.803.609.22

11.9813.4814.37

100.00

31.5818.266.43

10.2719.123.38

21.4610.2823.758.10

15.47

3.2318.403.54

12.428.964.099.83

11.9713.5913.97

100.00

21.4117.125.70

10.2219.416.27

22.1911.4824.959.63

15.60

0.300.220.020.01

-0.03-0.10-0.07-0.14-0.16-0.22-0.18

-0.020.010.040.010.030.05

-0.04-0.00-0.01-0.020.05

0.280.240.070.020.00

-0.06-0.11-0.14-0.17-0.24-0.12

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

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

Trading Effect -0.12% = [ Actual Return 15.36% ] - [ Buy Hold Return 15.47% ]

VVTacoma Employes’ Retirement SystemEquity Summary Statistics


8

10 Largest HoldingsName %Port $(000)

Exxon Mobil CorpApple Computer IncJ P Morgan Chase & CGoogle IncIntel CorpMicrosoft CorpAt&T IncProcter & Gamble CoChevron CorpBank Amer Corp

3.52.42.32.22.02.01.91.71.71.7

751510494462417414401365359358

10 Best PerformersName %Port %Return

Gannett IncHartford Finl Svcs GLiberty Media IntArmstrong World IndsForest City EnterpriAMR CorpAmerican Intl GroupProtective Life CorpDonnelley R R & SonsPatriot Coal Corp

0.00.10.00.10.00.00.10.00.10.0

252.15123.72118.96108.98102.5897.7690.1388.5286.2584.33

10 Worst PerformersName %Port %Return

Sprint Nextel CorpMcGraw Hill IncSlm CorpIntercontinentalexchDean Foods Co NewBrinks CoWellpoint IncDun & Bradstreet CorMemc Electr Matls InFamily Dlr Stores In

0.20.10.00.00.00.01.00.00.00.2

-17.88-15.89-15.09-14.92-7.30-6.99-6.94-6.82-6.63-6.25

Portfolio Characteristic Distribution (%)Quartile Mkt. Cap P/E Yield

1st2nd3rd4th

25th Percentile50th Percentile75th Percentile

68.115.25.8

10.9

18,170,4258,169,6094,753,245

27.030.132.610.4

21.514.910.2

26.930.542.50.0

2.91.40.0



INTECHQuarter Ended 9/30/09

1

Val

ue

3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/090.50

0.60

0.70

0.80

0.90

1.00

1.10

LegendReturn



-9.49-9.11

-9.49-9.11

0.780.79



2

-150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150-150

-125

-100

-75

-50

-25

0

25

50

75

100

125

150

Wils

hire

5000

Wilshire5000

Large CapValue

Small CapValue

Large Cap Growth

Small Cap Growth

Lar

geSI

ZE

Smal

l


Date

INTECH

Growth-Value Size



-9.81-9.67-2.625.905.476.097.873.55

-18.86-19.74-20.45

85.5686.3997.1297.55

100.0299.7297.1396.0597.6494.3394.86

-9.31-9.80-8.89-4.08-5.69-0.02-5.84-7.35

-13.89-13.40-15.43

106.38102.71106.36105.19106.09105.99105.25104.39105.26103.29101.54



3

Quarter $(000)#

Stocks %

Equity %

Cash %

OtherSectors


03/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/09


55,40557,58258,53658,15652,20651,28547,12136,87715,83918,26520,953

NA

357370294292339381413385365432429

500

100100100100100100100100100100100

100

00000000000

0

00000000000

0

659

1213141414131312

12

44443333323

4

108

11131413131313118

10

15171412109

1010101112

9

1412111012121212151512

12

1212131414141214141312

13

2119121112131413101214

15

1011121313121313141517

19

44555444545

3

68976643346

4


NAENRMATIND


CDICSTHTH


FININFTELUTL





4

QuarterGrowth



P/E P/B YLD ROERisk



11.913.114.815.816.516.016.215.312.910.59.3

9.7

4.95.05.25.26.36.46.36.37.06.76.2

6.0

75,79978,537

104,831104,04593,49086,60281,23373,23863,97068,83372,471

77,245

18.619.118.718.317.117.315.511.412.415.124.7

25.5

3.03.13.13.02.62.42.41.81.71.92.0

1.9

1.81.71.71.72.02.22.22.83.02.62.2

2.0

19.720.421.621.720.921.021.221.124.223.121.6

33.5

0.950.960.981.021.020.981.021.020.970.940.94

1.00

0.460.460.440.420.400.410.410.410.490.480.49

0.73

0.950.950.930.930.930.940.960.970.970.980.98

1.00



INTECH vs. Standard & Poor’s 500

5

P/E Ratio

0.0

10.0

20.0

30.0P/B Ratio

0.0

2.0

4.0

6.0

Dividend Yield

0.0

2.0

4.0

6.0Market Cap (Bil)

0.0

41.0

82.0

123.0

IndexPortfolio

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index18.3417.56

17.1417.06

17.2517.50

15.4715.34

11.4111.56

12.4113.17

15.0716.70

24.7025.54

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index3.022.76

2.562.38

2.452.28

2.412.23

1.851.73

1.731.61

1.881.75

1.961.91

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index1.731.98

1.972.19

2.162.28

2.202.44

2.842.99

2.992.81

2.602.35

2.222.04

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index104.05108.01

93.4996.22

86.6090.17

81.2386.58

73.2479.48

63.9767.35

68.8371.38

72.4777.24



6

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock


03/0806/0809/0812/08200803/0906/0909/09


6.282.05

-3.33

-9.46-2.72-8.37

-21.96-37.01-11.0115.9315.60

-9.11

9.96

-9.47

3.931.66

-0.65

-10.23-1.76-8.12

-21.74-36.59-11.4915.3114.72

-9.49

8.90

-9.00

3.931.74

-0.57

-10.15-1.68-8.04

-21.66-36.36-11.4915.4014.82

-9.24

8.97

-8.93

-0.00-0.09-0.08

-0.08-0.08-0.08-0.08-0.23-0.01-0.09-0.09

-0.25

-0.07

-0.07

-1.01-1.110.88

0.530.570.760.511.67

-0.60-0.16-0.33

0.14

-0.980.531.52

-1.771.050.08

-0.40-0.840.45

-0.41-0.35

-0.13

-0.360.270.37

0.54-0.58-0.510.19

-0.19-0.320.05

-0.10

-0.15

-2.35-0.402.68

-0.780.960.250.210.42

-0.48-0.62-0.88

-0.39

-1.06

0.47Index* : Standard & Poor’s 500



7

SectorPortfolio



Stock Sector TotalIndustrialsUtilitiesHealth CareInformation TechnologyTelecom ServicesConsumer DiscretionaryMaterialsEnergyFinancialsConsumer StaplesQuarter Total

10.843.87

13.2614.974.47

10.612.14

13.0411.8914.93

100.00

22.327.149.69

17.647.58

18.3319.639.28

24.459.89

14.92

9.834.09

13.9718.403.548.963.23

12.4213.5911.97

100.00

22.196.279.63

17.125.70

19.4121.4110.2224.9511.4815.60

0.010.030.010.080.08

-0.12-0.04-0.12-0.06-0.24-0.35

0.070.020.04

-0.06-0.090.06

-0.06-0.03-0.16-0.12-0.33

0.080.050.050.02

-0.01-0.05-0.10-0.16-0.22-0.36-0.68



Trading Effect -0.10% = [ Actual Return 14.82% ] - [ Buy Hold Return 14.92% ]



8


Exxon Mobil CorpAt&T IncProcter & Gamble CoJohnson & JohnsonGeneral Elec CoIntl Business McHnChevron CorpMicrosoft CorpCisco Sys IncVerizon Communicatio

4.52.62.32.12.01.71.71.61.41.3

48,34427,52824,91622,69521,74918,34718,16717,67714,55114,280


Hartford Finl Svcs GWynn Resorts LtdTextron IncJabil Circuit IncHarman Intl Inds IncMBIA IncCbs CorpMarshall & Ilsley CoCapital One Finl CorCitigroup Inc

0.20.10.00.00.10.00.00.10.20.1

123.72100.8296.6981.9980.2179.2174.9468.3663.5462.96


Moodys CorpSprint Nextel CorpMcGraw Hill IncSlm CorpIntercontinentalexchDean Foods Co NewIron Mtn Inc DelQuest Diagnostics InWellpoint IncPpl Corp

0.20.00.20.10.10.00.30.40.30.2

-22.03-17.88-15.89-15.09-14.92-7.30-7.27-7.17-6.94-6.87


1st2nd3rd4th


61.016.713.88.6

18,170,4258,169,6094,753,245

23.332.238.56.1

21.514.910.2

34.728.536.70.0

2.91.40.0



Research AffiliatesQuarter Ended 9/30/09

1

Val

ue

3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/090.50

0.60

0.70

0.80

0.90

1.00

1.10

LegendReturn



-9.25-9.11

-9.25-9.11

0.780.79



2

-150 -125 -100 -75 -50 -25 0 25 50 75 100 125 150-150

-125

-100

-75

-50

-25

0

25

50

75

100

125

150

Wils

hire

5000

Wilshire5000

Large CapValue

Small CapValue

Large Cap Growth

Small Cap Growth

Lar

geSI

ZE

Smal

l


Date

Research Affiliates

Growth-Value Size



-46.62-46.09-46.26-41.86-38.90-36.75-52.01-50.01-56.29-48.66-50.29

94.2895.4294.3583.4775.8174.7371.6174.3078.5974.1680.34

-9.31-9.80-8.89-4.08-5.69-0.02-5.84-7.35

-13.89-13.40-15.43

106.38102.71106.36105.19106.09105.99105.25104.39105.26103.29101.54



3

Quarter $(000)#

Stocks %

Equity %

Cash %

OtherSectors


03/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/09


73,20077,50777,64474,93267,95964,88060,55346,85118,36821,45826,026

NA

1,0741,078

948938997993

1,003994981

1,0111,000

500

100100100100100100100100100100100

100

00000000000

0

00000000000

0

1111121111131012131411

12

44455543344

4

1010111112121011101010

10

1111101113121413131212

9

111111121112101111118

12

1110101088

101111109

13

2324222021182319181929

15

99

101011121010101010

19

33432245543

3

66676756764

4


NAENRMATIND


CDICSTHTH


FININFTELUTL





4

QuarterGrowth



P/E P/B YLD ROERisk



12.013.713.914.313.914.112.813.79.05.40.7

9.7

5.65.85.95.66.36.36.36.35.95.64.7

6.0

94,73795,681

101,13689,32071,80070,50366,19063,76057,76854,44863,294

77,245

16.517.016.316.615.615.714.611.314.619.668.3

25.5

2.52.52.52.31.91.81.51.21.21.21.0

1.9

2.22.12.22.32.42.52.83.33.12.61.9

2.0

19.319.620.220.518.919.519.420.120.216.512.8

21.7

0.960.960.930.990.991.001.010.990.991.091.26

1.00

0.470.480.470.460.480.450.460.440.470.520.61

0.73

0.960.970.960.960.960.960.900.940.960.960.91

1.00



Research Affiliates vs. Standard & Poor’s 500

5

P/E Ratio

0.0

26.0

52.0

78.0P/B Ratio

0.0

2.0

4.0

6.0

Dividend Yield

0.0

2.0

4.0

6.0Market Cap (Bil)

0.0

41.0

82.0

123.0

IndexPortfolio

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index16.5817.56

15.6117.06

15.7217.50

14.6115.34

11.3311.56

14.6213.17

19.6016.70

68.3525.54

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index2.322.76

1.872.38

1.782.28

1.532.23

1.201.73

1.161.61

1.211.75

1.051.91

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index2.281.98

2.432.19

2.552.28

2.762.44

3.292.99

3.122.81

2.592.35

1.922.04

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index89.32

108.0171.8096.22

70.5090.17

66.1986.58

63.7679.48

57.7767.35

54.4571.38

63.2977.24



6

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock


03/0806/0809/0812/08200803/0906/0909/09


6.282.05

-3.33

-9.46-2.72-8.37

-21.96-37.01-11.0115.9315.60

-9.11

9.96

-9.47

5.880.18

-3.49

-9.31-4.53-6.67

-22.63-37.48-13.4816.8221.29

-9.25

11.04

-10.02

5.880.23

-3.47

-9.29-4.52-6.65

-22.61-37.43-13.6316.8421.30

-9.25

11.06

-10.03

0.01-0.05-0.02

-0.01-0.01-0.01-0.01-0.040.15

-0.02-0.02

0.00

-0.02

0.01

-0.38-0.52-0.18

0.52-1.350.76

-1.04-0.87-1.891.350.53

-1.09

0.30-1.17-0.57

-0.16-0.452.210.021.12

-0.830.102.61

0.61

-0.32-0.130.60

-0.200.00

-1.260.37

-0.680.10

-0.532.56

0.33

-0.40-1.88-0.16

0.15-1.811.70

-0.67-0.47-2.470.905.69

-0.14

1.08

-0.55Index* : Standard & Poor’s 500



7

SectorPortfolio



Stock Sector TotalConsumer DiscretionaryFinancialsMaterialsIndustrialsHealth CareTelecom ServicesInformation TechnologyConsumer StaplesEnergyUtilitiesQuarter Total

11.7118.574.35

10.2210.393.86

10.4710.5314.045.86

100.00

28.8227.8932.2926.3610.715.04

17.6810.1710.167.41

18.74

8.9613.593.239.83

13.973.54

18.4011.9712.424.09

100.00

19.4124.9521.4122.199.635.70

17.1211.4810.226.27

15.60

1.100.550.470.430.11

-0.030.06

-0.14-0.010.072.61

0.110.470.070.030.21

-0.03-0.130.06

-0.08-0.160.53

1.211.020.540.450.32

-0.06-0.07-0.08-0.09-0.103.14



Trading Effect 2.56% = [ Actual Return 21.30% ] - [ Buy Hold Return 18.74% ]



8


Citigroup IncBank Amer CorpExxon Mobil CorpMicrosoft CorpJ P Morgan Chase & CConocophillipsBerkshire Hathaway IJohnson & JohnsonFord Mtr Co DelWal Mart Stores Inc

4.54.03.82.12.11.71.41.41.21.2

17,04815,31314,3738,1378,0646,6745,4135,2314,6874,600


Gannett IncFerro CorpUal CorpBrunswick CorpAvis Budget GroupHartford Finl Svcs GConseco IncLiberty Media IntLas Vegas Sands CorpExide Technologies

0.40.00.10.10.20.50.10.10.10.0

252.15223.64189.03177.31136.46123.72121.94118.96114.25113.67


Cit Group IncPacific Cap BancorpMetropcs CommunicatiMoodys CorpSprint Nextel CorpAmerigroup CorpAmeristar Casinos InMcGraw Hill IncAecom Technology CorCathay Bancorp Inc

0.00.00.00.00.20.00.00.10.00.0

-43.72-32.71-29.68-22.03-17.88-17.43-16.10-15.89-15.19-14.84


1st2nd3rd4th


56.615.110.118.3

18,170,4258,169,6094,753,245

28.927.733.89.6

21.514.910.2

25.426.747.90.0

2.91.40.0



1


9/30/99Inception

DateInception

ReturnNorthern Trust EAFE Index MSCI EAFE Index (N)

Northern Trust Emerging Markets MSCI EM Index (N)

TT International MSCI EAFE Index (N) Performance Objective

Int’l Equity Composite Custom Benchmark

Int’l Equity Composite (Unhedged)

Indices MSCI EAFE Index (N) MSCI EM Index (N) MSCI ACWI X US (N)

19.5119.47

20.6820.91

22.0519.4720.12

20.1017.76

20.84

19.4720.9119.69

50.1749.85

62.3162.90

49.7849.8551.15

48.5245.27

52.97

49.8562.9052.71

32.5128.9630.91

25.1428.25

30.62

28.9664.4536.35

2.103.235.83

-3.12-0.41

1.13

3.2319.075.89

-3.49-3.60-1.00

-4.61-3.24

-3.24

-3.607.95

-1.24

7.526.078.67

6.136.15

7.05

6.0717.308.10

2.922.555.15

2.292.59

2.73

2.5511.384.04

3/31/09 3/31/09

3/31/09 3/31/09

3/31/99 3/31/99 3/31/99

3/31/88 3/31/88

3/31/88

Since 3/31/88 3/31/88 3/31/88

50.1749.85

62.3162.90

3.603.105.70

4.394.68

4.60

4.67

VVTacoma Employes’ Retirement SystemPerformance Comparison

Active EAFE International Equity PortfoliosPeriods Ended 9/30/09

2

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

θ θ T*hmzx

θ

θ

T *hm

z

x

T

*

hm

z

x

T

*hm

z

x

T *hmzx

T *hm

z

x

T *hm

z

x

T *hm

z

x

Med75th95th

25th 5th

Rat

e of

Ret

urn

θ NT EAFE Indexθ NT Emerging MarketsT TT International* Int’l Equity Compositeh Int’l Eq Comp (Unhedged)m MSCI EAFE Index (N) z MSCI EM Index (N) x MSCI ACWI X US (N) MedianNumber of Funds


19.51 (43)20.68 (29)22.05 (18)20.10 (36)20.84 (27)19.47 (44)20.91 (26)19.69 (40)

19.25

309

50.17 (43)62.31 ( 9)49.78 (47)48.52 (55)52.97 (28)49.85 (47)62.90 ( 8)52.71 (29)

49.46

309

32.51 (41)25.14 (79)30.62 (49)28.96 (59)64.45 ( 1)36.35 (27)

30.58

309

2.10 (69)-3.12 (91)1.13 (76)3.23 (59)

19.07 ( 4)5.89 (41)

4.48308

-17.12 (76)-18.52 (85)-16.76 (74)-15.30 (64)-10.82 (20)-14.10 (51)

-13.97

301

-3.49 (70)-4.61 (79)-3.24 (64)-3.60 (71)7.95 ( 1)

-1.24 (39)

-2.10288

7.52 (52)6.13 (79)7.05 (59)6.07 (80)

17.30 ( 1)8.10 (43)

7.64248

2.92 (88)2.29 (96)2.73 (91)2.55 (95)

11.38 ( 5)4.04 (71)

5.55171

VVTacoma Employes’ Retirement SystemIntl Equity Fund Structural Characteristics

Int’l Equity CompositeQuarter Ended 9/30/09

3

Manager US$(000) #%IntlEquity %Cash %Other

SectorsENR MAT IND CDI CST HTH FIN INF TEL UTL

Turn-Over

Northern Trust EAFE IndexNorthern Trust Emerging MarketsTT InternationalInt’l Equity Composite

MSCI EAFE Index (N)MSCI EM Index (N)MSCI ACWI X US (N)

77,99640,70487,142

205,906

NANANA

959737134

1,712

959751

1,806

100100

9799

100100100

0031

000

0000

000

815

79

81510

9141312

91411

117

1512

117

10

106

1411

1068

10567

1058

8235

826

27232927

272527

514

57

514

7

61036

696

6455

645

NANA

50.5NA

NANANA

VVTacoma Employes’ Retirement SystemIntl Equity Fund Investment Characteristics

Int’l Equity CompositeQuarter Ended 9/30/09

4

ManagerGrowth


Market Cap($Mil)Valuation

P/E P/B YLD ROERisk

Beta DBT/EQTNorthern Trust EAFE IndexNorthern Trust Emerging MarketsTT InternationalInt’l Equity Composite

MSCI EAFE Index (N)MSCI EM Index (N)MSCI ACWI X US (N)

4.617.15.27.3

5.316.98.2

9.717.59.9

11.2

10.017.311.4

49,88131,69342,97043,368

49,71231,75744,441

18.814.529.920.8

18.914.317.7

1.61.91.21.4

1.62.11.7

3.42.22.93.0

3.12.12.9

13.319.36.0

11.5

12.317.613.6

1.001.011.171.07

1.001.001.00

1.120.551.211.04

1.100.560.95

VVTacoma Employe’s Retirement SystemGrowth of One DollarNorthern Trust EAFE Index

Quarter Ended 9/30/09

1

Val

ue

3/09 6/09 9/090.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

LegendReturn


ValueTotalMSCI EAFE Index (N)

50.1749.85

50.1749.85

1.501.50

VVTacoma Employe’s Retirement SystemGrowth of One Dollar

Northern Trust Emerging MarketsQuarter Ended 9/30/09

1

Val

ue

3/09 6/09 9/090.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

LegendReturn


ValueTotalMSCI EM Index (N)

62.3162.90

62.3162.90

1.621.63


TT InternationalQuarter Ended 9/30/09

1

Val

ue

9/99 9/00 9/01 9/02 9/03 9/04 9/05 9/06 9/07 9/08 9/090.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2.40

2.60

LegendReturn


ValueTotalPerformance Objective

-3.49-1.00

3.605.70

1.451.81

VVTacoma Employes’ Retirement SystemIntl Equity Structural Characteristics


2

Quarter $(000)#

Stocks%IntlEquity %Cash %Other

SectorsENR MAT CAP CON SRV FIN MIN GMN MIS

Turn-Over

03/31/9906/30/9909/30/9912/31/9903/31/0006/30/0009/30/0012/31/0003/31/0106/30/0109/30/0112/31/0103/31/0206/30/0209/30/0212/31/02

MSCI EAFE Index (N)

39,76142,71743,85664,39267,56163,71560,44057,42747,52146,68939,58040,82540,49768,14556,76250,028

9,872,577

75797493908273778483646582736163

959

100100100100100100100100100100100100100100100100

100

0000000000000000

0

0000000000000000

0

9.13.25.61.6

10.111.96.04.12.66.7

16.79.3

13.615.522.815.2

13.5

2.95.04.43.46.54.40.91.11.93.24.16.14.56.44.03.9

9.7

7.720.224.525.323.417.517.312.012.17.33.6

12.114.54.57.1

11.9

15.2

29.422.121.110.718.827.925.927.423.423.524.726.122.220.322.125.8

18.7

16.431.929.539.929.416.118.920.830.327.127.824.424.631.220.321.7

16.7

32.714.914.014.77.5

19.226.929.627.529.919.117.413.920.522.120.6

25.6

0.02.70.91.43.02.32.93.32.22.01.31.21.91.51.71.0

0.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.0

1.70.00.03.11.40.61.21.60.00.32.73.54.90.00.00.0

0.2

NANANANANANANANANANANANANANANANA

NA

VVTacoma Employes’ Retirement SystemInternational Equity Structural Characteristics


3

Quarter $(000)#Intl

Stocks%IntlEquity

%Cash

%Other


Turn-Over

12/31/0203/31/0306/30/0309/30/0312/31/0303/31/0406/30/0409/30/0412/31/0403/31/0506/30/0509/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/0703/31/08MSCI EAFE Index (N)

50,02845,92655,56258,96463,28066,78964,70262,21271,50870,03270,77380,66887,10686,74281,90277,73887,91490,55791,30094,12193,62685,483

9,872,577

6354617575818882828382898893888894

106111109121116959

1001001001001001001001009595959898999399989898989797

100

00000000555221712222330

00000000000000000000000

12660001443

10789977575678

4139

109678

111311131211131015141516169

56799

121216131716202018151519232319181711

109

109

141716155

111310898

1014111416151310

88453454233452576568

101010

109633642320496977546568

2633383943434743523322283031302823241817131327

12101312663369863566799

10875

1014121512555659722110001236

44100000265345567454686

NANANANANANANANA

38.048.341.111.736.034.937.336.534.543.634.732.328.229.6NA

ENRMATIND


CDICSTHTH


FININFTELUTL



VVTacoma Employes’ Retirement SystemInternational Equity Structural Characteristics


4

Quarter $(000)#Intl

Stocks%IntlEquity

%Cash

%Other


Turn-Over

06/30/0809/30/0812/31/0803/31/0906/30/0909/30/09

MSCI EAFE Index (N)

84,35063,81449,02858,03771,23587,142

9,872,577

117116126139136134

959

979495949697

100

365643

0

000000

0

899

10107

8

17117

101113

9

111111111215

11

121099

1114

10

11121211106

10

9101312103

8

182020202429

27

444335

5

358853

6

899645

6

49.250.040.233.145.750.5

NAENRMATIND


CDICSTHTH


FININFTELUTL



VVTacoma Employes’ Retirement SystemIntl Equity Investment Characteristics


5

QuarterGrowth

5 Yrs EPS 5 Yrs DivAverage

Mkt Cap $(Mil)Valuation

P/E P/B YLD ROERisk

Beta Debt/Eqty03/31/9906/30/9909/30/9912/31/9903/31/0006/30/0009/30/0012/31/0003/31/0106/30/0109/30/0112/31/0103/31/0206/30/0209/30/0212/31/0203/31/0306/30/0309/30/0312/31/0303/31/0406/30/04MSCI EAFE Index (N)

14.410.68.9

14.310.211.124.411.912.115.218.624.224.99.2

17.013.713.26.4

-0.53.21.17.45.3

10.111.812.66.85.98.6

12.113.98.5

10.013.715.616.211.712.613.09.52.04.14.83.64.2

10.0

26,29629,00531,47059,34360,18441,24739,21644,53038,29032,29837,04142,50635,60642,05237,83946,20641,72447,08739,66942,08927,33624,80549,712

22.949.147.949.738.828.532.225.224.423.322.119.722.435.419.326.343.9NMNMNM38.827.118.9

3.56.68.3

32.211.47.6

10.18.27.14.64.05.63.73.72.84.15.01.91.51.61.91.71.6

2.21.31.20.60.91.71.41.51.61.72.11.82.02.43.53.03.42.62.12.01.91.83.1

13.716.713.89.7

14.414.014.118.016.212.313.317.515.916.715.618.916.67.12.21.9

18.78.7

12.3

0.921.010.991.040.870.810.970.870.860.710.670.770.760.670.680.700.891.040.950.990.990.991.00

0.650.490.590.760.560.560.830.811.011.251.050.660.680.800.730.710.910.970.921.111.391.191.10

P/B methodology changed 2Q03. See glossary.

VVTacoma Employes’ Retirement SystemIntl Equity Investment Characteristics


6

QuarterGrowth

5 Yrs EPS 5 Yrs DivAverage

Mkt Cap $(Mil)Valuation

P/E P/B YLD ROERisk

Beta Debt/Eqty09/30/0412/31/0403/31/0506/30/0509/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/09

MSCI EAFE Index (N)

6.85.82.7

10.211.88.2

10.512.912.011.616.732.427.925.522.823.223.225.622.89.65.2

5.3

3.11.31.79.57.04.55.9

14.213.614.813.414.712.513.014.314.516.717.915.911.99.9

10.0

30,94638,80128,09737,53743,48140,45341,98346,14744,28147,29639,49045,84657,03162,62256,15858,56244,69045,02039,05041,47642,970

49,712

21.322.217.116.419.523.619.615.815.116.715.517.216.616.113.212.210.49.7

10.415.729.9

18.9

1.82.02.02.02.42.93.02.62.62.72.72.62.72.82.32.01.51.21.11.21.2

1.6

1.91.92.22.21.81.71.92.12.22.12.22.02.12.22.83.34.04.74.23.82.9

3.1

12.111.411.616.215.218.719.923.822.821.916.616.920.119.420.421.523.020.718.211.96.0

12.3

0.910.971.030.970.940.951.080.930.940.980.980.960.801.101.081.071.081.041.031.071.17

1.00

1.171.201.231.151.021.201.170.870.851.050.980.950.840.780.780.941.070.900.921.031.21

1.10

P/B methodology changed 2Q03. See glossary.

VVTacoma Employes’ Retirement SystemCountry Allocations


7

Aus

tria

Bel

gium

Den

mar

k

Finl

and

Fran

ce

Ger

man

y

Gre

ece

Irel

and

Ital

y

Net

herl

ands

Nor

way

Port

ugal

Spai

n

Swed

en

Switz

erla

nd

Uni

ted

Kin

gdom

Oth

er E

urop

e D

evel

oped

Tot

al E

urop

e D

evel

oped

Oth

er E

urop

e E

mer

ging

Tot

al E

urop

e E

mer

ging

Tot

al E

urop

e

Can

ada

Uni

ted

Stat

es

Tot

al A

mer

icas

Dev

elop

ed

Oth

er A

mer

icas

Em

ergi

ng

Tot

al A

mer

icas

Em

ergi

ng

Tot

al A

mer

icas

Aus

tral

ia

Hon

g K

ong

Japa

n

New

Zea

land

Sing

apor

e

Tot

al P

acif

ic B

asin

Dev

elop

ed

Indi

a

Mal

aysi

a

Chi

na

Sout

h K

orea

Tai

wan

Tha

iland

Tot

al P

acif

ic B

asin

Em

ergi

ng

Tot

al P

acif

ic B

asin

Oth

er C

ount

ries

Em

ergi

ng

Tot

al D

evel

oped

Tot

al E

mer

ging

3/996/999/99

12/993/006/009/00

12/003/016/019/01

12/013/026/029/02

12/023/036/039/03

12/033/046/049/04

12/04*Idx

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.3

0.00.00.00.00.01.61.51.92.52.61.31.21.21.21.10.60.00.00.00.00.70.00.00.01.0

1.02.00.00.00.00.63.72.83.72.64.04.03.2+00.00.01.20.00.00.00.00.00.00.80.9

0.95.24.90.00.02.40.01.10.00.00.82.22.61.14.15.16.23.60.00.00.00.00.00.01.2

14.120.522.29.84.68.6

13.815.99.1

12.320.217.69.8

19.314.711.75.45.16.3

10.312.88.05.83.7

11.0

9.51.75.6

13.611.810.011.211.311.89.04.09.25.81.84.92.24.4

11.08.4

15.415.512.411.88.38.1

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.7

0.00.00.00.00.00.90.61.31.42.41.70.60.00.00.00.00.00.00.00.00.00.00.00.00.3

4.86.91.85.02.27.07.89.29.29.7

10.65.46.67.07.06.73.12.70.01.11.21.61.93.53.7

3.77.48.04.05.26.9

10.511.15.42.11.14.24.13.38.27.3

10.98.04.83.53.33.31.61.62.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.30.90.7

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.3

5.61.81.92.14.87.46.13.26.50.90.01.00.00.00.00.03.13.90.00.00.01.10.02.34.7

7.01.91.93.02.73.33.10.00.70.00.00.00.00.00.00.00.00.00.00.00.00.00.00.02.5

4.73.51.71.73.56.68.37.21.42.96.59.37.84.94.55.68.7

13.512.910.810.19.5

10.812.07.7

17.916.411.110.621.928.322.920.121.020.530.927.934.142.839.941.340.831.727.130.022.723.625.024.020.8

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0+0

69.367.259.149.856.783.489.685.172.765.081.082.675.181.484.380.483.779.559.571.166.259.557.357.066.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0+0

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0+0

69.367.259.149.856.783.489.685.172.765.081.082.675.181.484.380.483.779.559.571.166.259.557.357.066.6

0.00.00.0+00.40.51.20.50.40.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

6.90.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

6.90.00.0+00.40.51.20.50.40.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0+0

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0+0

6.90.00.0+00.40.51.20.50.40.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0+0

2.30.61.10.91.30.00.00.00.61.50.50.42.10.00.01.80.60.01.01.61.50.71.01.08.2

1.22.21.54.63.72.00.55.64.23.3+01.60.40.50.00.00.00.53.62.22.81.32.44.32.3

18.126.331.837.135.212.88.48.2

21.829.518.111.713.515.012.412.915.615.626.919.520.629.531.729.821.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.1

1.31.52.41.90.00.00.00.60.20.00.00.00.80.30.60.40.00.41.20.42.01.71.32.01.4

22.930.536.844.540.214.88.9

14.426.934.218.713.816.915.813.015.216.316.532.723.726.833.236.537.233.5

0.80.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.20.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.60.71.00.00.0

0.00.00.00.00.00.00.00.00.00.00.40.00.00.00.00.00.00.60.00.00.00.40.80.60.0

0.02.33.24.82.71.20.20.00.00.80.03.26.12.12.73.90.02.23.33.73.63.41.11.60.0

0.00.00.50.80.00.00.00.00.00.00.00.41.90.70.00.50.01.24.41.51.51.41.41.10.0

0.00.00.40.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.01.21.41.91.80.0

1.02.34.15.72.71.20.20.00.00.80.43.68.02.82.74.40.04.07.75.27.07.36.35.00.0

23.932.840.950.242.916.09.1

14.426.935.019.017.424.918.615.719.616.320.540.528.933.840.542.742.233.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.90.0

99.097.795.994.397.398.899.8

100.0100.099.299.696.492.097.297.395.6

100.096.092.394.893.092.793.794.1

100.0

1.02.34.15.72.71.20.20.00.00.80.43.68.02.82.74.40.04.07.75.27.07.36.35.90.1

*Idx - MSCI EAFE Index (N)

VVTacoma Employes’ Retirement SystemCountry Allocations


8

Aus

tria

Bel

gium

Den

mar

k

Finl

and

Fran

ce

Ger

man

y

Gre

ece

Irel

and

Ital

y

Net

herl

ands

Nor

way

Port

ugal

Spai

n

Swed

en

Switz

erla

nd

Uni

ted

Kin

gdom

Oth

er E

urop

e D

evel

oped

Tot

al E

urop

e D

evel

oped

Oth

er E

urop

e E

mer

ging

Tot

al E

urop

e E

mer

ging

Tot

al E

urop

e

Can

ada

Uni

ted

Stat

es

Tot

al A

mer

icas

Dev

elop

ed

Oth

er A

mer

icas

Em

ergi

ng

Tot

al A

mer

icas

Em

ergi

ng

Tot

al A

mer

icas

Aus

tral

ia

Hon

g K

ong

Japa

n

New

Zea

land

Sing

apor

e

Tot

al P

acif

ic B

asin

Dev

elop

ed

Indi

a

Mal

aysi

a

Chi

na

Sout

h K

orea

Tai

wan

Tha

iland

Tot

al P

acif

ic B

asin

Em

ergi

ng

Tot

al P

acif

ic B

asin

Oth

er C

ount

ries

Em

ergi

ng

Tot

al D

evel

oped

Tot

al E

mer

ging

3/056/059/0512/053/066/069/0612/063/076/079/0712/073/086/089/0812/083/096/099/09 *Idx

0.00.00.00.91.40.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.3

0.00.00.21.01.10.91.50.80.00.00.00.00.00.00.00.00.00.00.0

1.0

0.81.11.10.00.00.00.01.50.00.00.00.00.00.90.90.20.60.90.8

0.9

2.82.61.50.00.00.00.00.01.32.12.12.12.10.00.00.00.00.00.0

1.2

6.78.6

10.211.710.611.313.514.813.48.65.48.09.28.48.69.48.26.37.7

11.0

11.915.314.413.210.37.79.08.3

11.218.316.618.818.614.713.612.210.410.013.1

8.1

0.00.00.00.00.00.00.00.00.40.00.00.00.00.00.00.00.00.01.5

0.7

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.01.3

0.3

5.32.02.12.01.81.72.04.03.62.11.71.62.10.00.00.00.00.01.8

3.7

2.21.40.80.00.30.92.41.33.24.01.12.12.61.61.30.90.00.01.8

2.5

1.02.02.43.54.73.73.23.04.34.64.95.03.93.94.11.81.61.61.8

0.7

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.3

0.00.00.00.02.10.00.01.60.00.00.01.11.63.22.33.73.83.92.7

4.7

3.35.34.62.72.52.94.65.02.92.12.20.00.00.00.00.00.00.92.4

2.5

9.57.37.98.89.28.76.25.13.73.28.46.54.56.74.29.3

10.99.83.8

7.7

18.626.420.823.022.027.930.627.421.625.027.725.128.431.432.827.932.332.428.7

20.8

0.00.00.00.00.91.30.00.00.00.00.00.00.00.00.00.00.00.00.0

+0

62.071.966.066.866.967.073.072.865.469.970.170.373.170.867.965.467.765.867.4

66.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

+0

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

+0

62.071.966.066.866.967.073.072.865.469.970.170.373.170.867.965.467.765.867.4

66.6

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.0

0.00.00.00.00.00.00.00.00.30.00.00.00.00.00.00.00.00.00.2

0.0

0.00.00.00.00.00.00.00.00.30.00.00.00.00.00.00.00.00.00.2

0.0

0.00.00.00.00.00.00.00.00.00.30.00.00.00.00.00.00.00.00.0

+0

0.00.00.00.00.00.00.00.00.00.30.00.00.00.00.00.00.00.00.0

+0

0.00.00.00.00.00.00.00.00.30.30.00.00.00.00.00.00.00.00.2

+0

1.02.63.12.52.62.82.62.53.95.36.16.15.46.14.43.94.96.16.1

8.2

1.81.81.41.51.51.01.52.01.71.01.42.61.61.21.41.61.51.61.5

2.3

27.321.226.727.026.326.320.720.425.521.620.719.618.420.824.427.423.624.223.5

21.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.20.20.2

0.1

1.51.40.91.01.21.51.31.41.70.91.01.31.10.90.90.70.91.11.0

1.4

31.627.132.231.931.631.626.226.332.828.829.329.626.529.031.133.531.233.232.3

33.5

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.0

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.0

0.40.00.50.00.80.30.20.50.90.20.10.10.20.00.00.00.00.00.0

0.0

0.91.01.41.20.71.10.60.40.60.70.00.00.20.00.00.10.10.00.0

0.0

3.40.00.00.00.00.00.00.00.00.00.50.00.00.00.00.00.00.00.0

0.0

0.70.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.0

5.41.01.81.21.51.40.80.91.51.00.70.10.40.00.00.10.10.00.0

0.0

37.128.134.033.233.133.027.027.234.329.729.929.726.929.031.133.631.233.232.3

33.5

0.90.00.00.00.00.00.00.00.00.00.00.00.00.11.01.01.11.00.1

0.0

93.799.098.298.898.598.699.299.198.598.799.3

100.099.699.999.099.098.999.0

100.0

100.0

6.31.01.81.21.51.40.80.91.51.30.70.10.40.11.01.01.11.00.1

0.1

*Idx - MSCI EAFE Index (N)

VVTacoma Employes’ Retirement SystemIntl Equity Return Analysis


9

Quarter

IndexLocal

CurrencyIndex

CurrencyIndexUS $

TotalReturn

IntlEquityReturn


TimingCurrencyHedging

CountryCurrency

CountryMarket Sector Stock Trading Total

06/9909/9912/99

03/0006/0009/0012/00200003/0106/0109/0112/01200103/0206/0209/0212/02200203/0306/0309/0312/032003

5.75-1.4019.35

2.54-2.25-3.13-4.56-7.34-7.761.05

-18.6910.44

-16.301.97

-11.29-20.04

2.22-26.06-9.4315.315.399.28

20.28

-3.215.79

-2.36

-2.64-1.71-4.931.88

-6.82-5.95-2.094.69

-3.47-5.15-1.469.170.314.23

10.121.223.962.747.80

18.31

2.544.39

16.99

-0.10-3.96-8.06-2.69

-14.16-13.71-1.05

-14.006.97

-21.450.51

-2.12-19.73

6.45-15.94-8.2119.278.13

17.0838.58

6.232.41

36.12

4.67-5.93-5.38-5.23

-11.71-17.47-1.99

-15.452.89

-29.63-1.05-3.41

-17.414.76

-17.31-8.2020.986.12

14.4534.89

7.432.67

37.02

4.92-5.69-5.14-4.99

-10.82-17.25-1.75

-15.233.14

-28.91-0.80-3.41

-17.204.76

-16.89-8.2020.986.12

14.4534.89

-0.950.03

-0.69

0.040.020.000.020.160.040.000.050.030.340.01

-0.000.050.000.100.000.00

-0.000.000.00

-0.25-0.29-0.22

-0.29-0.26-0.24-0.26-1.05-0.26-0.24-0.27-0.29-1.06-0.260.00

-0.260.00

-0.52-0.00-0.00-0.00-0.00-0.00

0.080.140.26

0.64-0.37-0.262.012.020.90

-0.21-0.040.180.83

-0.38-0.350.560.17

-0.00-0.730.09

-0.27-1.43-2.32

1.351.014.71

0.37-0.981.300.881.56

-1.15-0.56-0.09-1.28-3.051.19

-0.57-0.622.332.33

-0.65-0.32-0.66-0.26-1.88

-0.27-0.221.44

0.59-0.030.56

-0.720.40

-0.53-1.09-0.21-0.69-2.49-1.30-0.910.201.13

-0.910.251.940.150.222.58

2.196.46

20.56

5.82-4.133.98

-1.583.81

-1.66-0.11-0.80-2.56-5.05-0.450.880.51

-2.42-1.500.620.06

-1.720.34

-0.72

1.54-9.12-6.94

-2.393.77

-2.65-2.89-4.44-1.091.26

-0.090.522.30

-0.37-0.341.89

-2.92-0.870.52

-0.060.50

-1.49-1.35

3.69-1.9919.13

4.77-1.972.68

-2.542.45

-3.75-0.95-1.45-4.08-8.18-1.56-1.292.32

-1.70-1.370.011.71

-2.00-2.63-3.69

Index : MSCI EAFE Index (N)



10

Quarter

IndexLocal

CurrencyIndex

CurrencyIndexUS $

TotalReturn

IntlEquityReturn



CountryCurrency


03/0406/0409/0412/04200403/0506/0509/0512/05200503/0606/0609/0612/06200603/0706/0709/0712/07200703/0806/0809/0812/08

4.062.40

-1.036.83

12.663.364.55

11.447.11

29.008.19

-4.255.027.04

16.453.345.92

-2.52-2.963.54

-14.95-0.88

-13.02-18.54

0.28-2.190.758.497.58

-3.53-5.56-1.07-3.03

-15.461.214.95

-1.103.319.880.730.494.701.217.636.04

-1.37-7.54-1.41

4.340.22

-0.2815.3220.24-0.17-1.0110.374.08

13.539.390.703.93

10.3526.344.076.402.18

-1.7511.17-8.91-2.25

-20.56-19.95

5.55-3.13-3.8515.1013.15-2.141.00

13.907.89

21.4612.29-0.172.04

13.0129.272.979.113.06

-0.5615.14-8.73-1.36

-24.85-22.95

5.55-3.13-3.8515.7013.74-2.081.13

14.098.35

22.4112.60-0.172.27

13.3230.273.767.043.09

-0.5413.86-9.00-1.34

-25.08-23.64

-0.00-0.000.00

-0.48-0.470.130.03

-0.21-0.30-0.46-0.200.34

-0.13-0.25-0.40-0.110.02

-0.040.04

-0.040.320.040.950.78

-0.00-0.00-0.00-0.12-0.12-0.19-0.160.02

-0.16-0.49-0.12-0.33-0.10-0.05-0.60-0.682.060.01

-0.051.32

-0.04-0.05-0.73-0.09

0.370.40

-0.48-0.53-0.240.320.290.040.040.680.110.10

-0.150.250.30

-0.20-0.170.12

-0.33-0.57-0.360.14

-0.11-1.68

-0.94-0.60-0.68-0.78-2.97-0.66-0.310.230.780.030.09

-0.07-0.670.13

-0.52-0.140.700.220.371.15

-0.501.090.181.29

0.49-1.71-1.541.76

-1.04-0.23-0.712.120.912.081.17

-0.99-0.400.860.631.280.941.06

-0.402.911.720.890.27

-0.66

0.60-0.94-0.38-0.06-0.78-0.332.091.210.263.241.810.080.131.573.62

-1.511.66

-0.430.820.52

-2.11-0.30-3.90-1.38

0.69-0.49-0.49-0.02-1.48-1.010.780.122.292.850.030.01

-0.550.15

-0.090.24

-2.49-0.060.74

-1.311.16

-0.91-0.96-1.26

1.21-3.34-3.57-0.22-7.09-1.982.013.533.817.922.89

-0.87-1.882.662.93

-1.102.710.881.193.970.180.89

-4.29-3.00

Index : MSCI EAFE Index (N)



11

Quarter

IndexLocal

CurrencyIndex

CurrencyIndexUS $

TotalReturn

IntlEquityReturn



CountryCurrency


200803/0906/0909/09


-40.27-10.1016.9214.82

0.77

6.72

-6.69

-3.11-3.848.514.64

2.32

1.91

-0.81

-43.38-13.9425.4319.47

3.10

8.63

-7.50

-47.87-11.5322.7222.05

3.60

9.53

-7.93

-48.64-10.7124.0023.06

4.28

9.80

-7.84

1.68-0.79-1.21-0.73

-0.24

-0.21

0.09

-0.91-0.03-0.08-0.28

-0.44

-0.05

-0.18

-2.000.240.90

-1.03

-0.08

2.06-0.07-1.78-0.07

0.34

2.22-0.180.73

-0.40

0.70

-7.511.48

-1.774.31

2.51

-0.041.760.490.78

-2.29

-4.492.41

-2.712.58

0.51

0.90

-0.44 Index : MSCI EAFE Index (N)

VVTacoma Employes’ Retirement SystemIntl Equity Total Attribution Analysis


12

Country

PortfolioMarket

Value %Buy & Hold

Return

MSCI EAFE Index (N)Market Value %

$Return

VarianceCountry

WeightingSector

WeightingStock

Selection

TotalGermanyFranceUnited KingdomSwedenAustraliaJapanSwitzerlandFinlandHong KongScotlandCayman IslandsIrelandUnited StatesCyprusBermudaLuxembourgKazakhstanPortugalIsle of ManNew Zealand

10.026.33

32.370.896.09

24.229.800.001.630.000.000.000.000.000.000.000.000.000.000.20

32.92 46.52 20.70 98.39 41.95 7.94 24.62

-- 13.15

-- -- -- -- -- -- -- -- -- --

12.13

7.77 10.36 21.01 2.38 7.38 24.12 7.47 1.28 2.43 0.03 0.04 0.29 0.00 0.00 0.00 0.00 0.00 0.33 0.02 0.11

23.25 27.03 18.41 25.30 33.03 6.64 22.65 12.79 14.38 1.20 15.07 19.30 26.92 34.46 43.54 25.48 65.56 20.16 76.82 25.79

0.08 -0.31 -0.12 -0.09 -0.17 -0.01 0.07 0.09 0.04 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.00 -0.01 0.01

-0.43 0.53 -0.24 0.08 0.10 -0.17 0.18 0.00 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.03

1.40 0.71 0.98 0.57 0.44 0.49 0.01 0.00 -0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1.05 0.93 0.62 0.56 0.37 0.30 0.27 0.09 0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.00 -0.01 -0.02

VVTacoma Employes’ Retirement SystemIntl Equity Total Attribution Analysis


13

Country

PortfolioMarket

Value %Buy & Hold

Return


$Return

VarianceCountry

WeightingSector

WeightingStock

Selection

TotalAustriaDenmarkSingaporeGreeceBelgiumNorwayNetherlandsItalySpainRussiaUnited Arab Emirates

Quarter Total

0.000.901.060.000.001.570.000.003.950.910.07

100.00

-- 12.81 13.43

-- --

13.82 -- --

17.15 14.92 55.13

22.27

0.31 0.92 1.35 0.58 0.92 0.67 2.31 3.53 4.49 0.00 0.00

100.00

29.27 17.97 18.28 32.22 28.71 25.03 29.59 27.05 27.51 27.01

--

19.47

-0.03 0.00 0.00 -0.07 -0.09 0.05 -0.23 -0.27 -0.04

-- --

-1.10

0.00 -0.05 -0.01 0.00 0.00 -0.18 0.00 0.00 -0.20 0.00 0.00

-0.40

0.00 0.00 -0.04 0.00 0.00 0.00 0.00 0.00 -0.21 0.00 0.00

4.31

-0.03 -0.05 -0.05 -0.07 -0.09 -0.13 -0.23 -0.27 -0.45

-- --

2.82

VVTacoma Employes’ Retirement SystemIntl Equity Country Attribution Analysis


14

Country

PortfolioMarket

Value %Buy & Hold

Return


LocalReturn

US $Return

VarianceCurrency

WeightingMarket

WeightingCountry

WeightingFinlandGermanySwitzerlandNorwayHong KongNew ZealandScotlandSingaporeCayman IslandsIrelandDenmarkUnited StatesCyprusBermudaLuxembourgKazakhstanPortugalIsle of ManJapanAustria

0.0010.029.801.571.630.200.001.060.000.000.900.000.000.000.000.000.000.00

24.220.00

-- 32.92 24.62 13.82 13.15 12.13

-- 13.43

-- --

12.81 -- -- -- -- -- -- --

7.94 --

1.28 7.77 7.47 0.67 2.43 0.11 0.03 1.35 0.04 0.29 0.92 0.00 0.00 0.00 0.00 0.00 0.33 0.02 24.12 0.31

8.23 18.27 17.03 12.71 14.38 12.64 4.21 15.15 15.07 14.48 13.17 17.45 29.03 31.65 20.41 70.48 15.30 72.14 -1.04 24.05

12.79 23.25 22.65 25.03 14.38 25.79 1.20 18.28 15.07 19.30 17.97 26.92 34.46 43.54 25.48 65.56 20.16 76.82 6.64 29.27

0.00 0.01 0.02 0.07 0.04 0.01 0.00 0.00 0.00 -0.00 -0.00 0.00 0.00 0.00 0.00 -0.00 -0.00 -0.00 0.00 -0.00

0.08 0.08 0.05 -0.02 0.00 -0.00 0.00 -0.00 -0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.00 -0.01 -0.02 -0.03

0.09 0.08 0.07 0.05 0.04 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.00 -0.01 -0.01 -0.03

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

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

Country Weighting = Currency Weighting + Market Weighting

VVTacoma Employes’ Retirement SystemIntl Equity Country Attribution Analysis


15

Country

PortfolioMarket

Value %Buy & Hold

Return


LocalReturn

US $Return

VarianceCurrency

WeightingMarket

WeightingCountry

WeightingSpainGreeceBelgiumSwedenUnited KingdomAustraliaNetherlandsItalyFranceUnited Arab EmiratesRussia

Quarter Total

3.950.000.000.89

32.376.090.000.006.330.070.91

100.00

17.15 -- --

98.39 20.70 41.95

-- --

46.52 55.13 14.92

22.27

4.49 0.58 0.92 2.38 21.01 7.38 2.31 3.53 10.36 0.00 0.00

100.00

22.36 26.88 23.51 13.09 21.92 21.86 24.59 21.92 21.90

-- --

14.82

27.51 32.22 28.71 25.30 18.41 33.03 29.59 27.05 27.03

-- 27.01

19.47

-0.00 -0.00 -0.01 -0.11 -0.93 -0.08 -0.01 -0.02 -0.02

-- --

-1.03

-0.04 -0.07 -0.08 0.03 0.81 -0.09 -0.23 -0.25 -0.29

-- --

-0.07

-0.04 -0.07 -0.09 -0.09 -0.12 -0.17 -0.23 -0.27 -0.31

-- --

-1.10

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

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

Country Weighting = Currency Weighting + Market Weighting



16


Xstrata PlcCredit Agricole SaRoyal Dutch ShellHsbc HldgsAllianz SeRoyal Bank of ScotlaSanofi-AventisAlstomRio TintoUbs Ag

3.43.02.92.82.32.32.22.12.12.0

2,8592,5082,4552,3041,9251,9221,8151,7651,7621,637


Groupe Eurotunnel SaCentral African MiniLend Lease CorpCredit Agricole SaVolkswagen AgAustralia & New ZealQantas AirwaysDp World LimitedUbs AgToll Hldgs Ltd

0.40.40.23.01.30.60.40.12.00.2

82.2876.1667.9467.6666.6861.4655.3355.1349.6048.99


Nomura Holdings Inc.Sumitomo Mitsui FinaMitsubishi Ufj FinanSekisui HouseNippon Yusen KkCredit Saison CoMitsubishi Estate CoNtt Urban DevelopmJfe Shoji HldgsHong Kong Electric H

0.40.90.50.20.40.30.50.30.00.1

-26.79-12.94-12.08-9.92-9.83-7.33-5.16-4.38-0.990.03


1st2nd3rd4th


70.616.46.46.6

13,271,5356,227,6783,542,348

28.116.040.315.7

23.614.37.3

26.628.021.424.0

4.12.51.5

MSCI EAFE Index (N)

VVTacoma Employes’ Retirement SystemEquity Portfolio Activity


17

AdditionsSecurity Name Quantity $(000) New

DeletionsSecurity Name Quantity $(000) Eliminated

BarclaysUnicredit SpaSanofi-AventisDaimler AgNational Bank of GreCrhHeidelbergcement AgRio TintoAegon NvRoyal Bank of ScotlaCarnival PlcSkf AbSandvik AbHino MotorsVolvo(Ab)Sumitomo Heavy IndEads(Euro AeronauticIberdrola SaNational Australia BReckitt Benckiser GrKomatsuTokyo Tatemono CoOmron CorpElpida Memory IncFuji Heavy Inds

257,979379,59820,01027,74935,59738,94415,78823,276

113,9601,015,060

20,96145,17862,385

159,00063,600

115,00023,79353,88318,51410,26822,40085,00019,70028,20091,000

1,5271,4811,4671,3951,2751,0761,021

993966860715707687606587563534528503502421417373371355

**

****

*

*******

*

*****

Roche Holdings Ag Nestle Sa Glaxosmithkline Astrazeneca Imperial Tobacco GroBg Group Man Group Hsbc Hldgs Abb Ltd Iberdrola Sa Bayer Ag Telefonica Sa Gazprom Fuji Film Hld Corp Volkswagen Ag Swedbank Ab Kuraray Co Lafarge Kddi Corp Zurich Financial SerAsahi Glass Co Sumitomo Rlty&Dev Credit Agricole Sa Ihi Corporation Westpac Banking Corp

13,85742,46585,75534,20840,01255,070

183,68864,08846,24191,8349,923

23,46930,15019,0005,174

103,30053,0007,494

932,646

51,00020,00016,321

188,00013,415

1,8821,5981,5091,5041,157

923839734726721687647610603602599589507494466413367341325311

****

**

**

**

*****

*

*



18



Commonwealth Bank OfChuo Mitsui Trust HoFuji Electric HldgPanasonic CorpCredit Suisse GroupToshiba CorpCentricaNippon Tel & Tel CorStatoilhydro AsaAdidas AgTokyo ElectronBritish AirwaysRoyal Dutch ShellYahoo Japan CorporatUbs AgTokuyama CorpAll Nippon Airways CT&D Holdings IncNabtesco CorpTullow Oil PlcAmcor LimitedOil SearchAllianz SeShinko Elec IndsToyota Motor Corp

7,44590,000

180,00022,0005,614

59,00076,8546,600

13,5005,6324,500

80,7039,940

78314,18234,00082,0008,450

19,00011,68442,27934,0151,5479,9004,400

340335334325311310309307302298288285284267259250235229227211204194193177175

****

*

**

*

****

**

Bae Systems Axa Shin-Etsu Chemical Secom Co Nissan Motor Co Cairn Energy Plc Amp Limited Tokio Marine HoldingBank of Yokohama Boral Ltd Sumitomo Electric InCsl Sumitomo Forestry Origin Energy Ltd Kao Corp Seven & I Holdings CMitsui Sumitomo InsuWesfarmers Ltd Central Japan RailwaToll Hldgs Ltd Lend Lease Corp Hang Seng Bank Central African MiniAustralia & New ZealDev Bk of Singapore

55,37215,3166,0006,400

36,1004,899

55,0077,800

39,00060,81617,6007,535

23,00015,3237,3007,2006,4008,902

2620,89016,52610,600

473,9346,633

17,000

309288279260219218217216209200198196194181181169168163160157155149148143139

****

********

****

*

*



19



Brambles LtdMakita CorpE.On AgRyohin Keikaku CoAsciano GroupNikon CorpBoc Hong Kong(Hldgs)News CorporationNomura Holdings Inc.Unilever PlcMitsubishi CorpAlstomTdk CorpLinde AgSony CorpVenture CorporationAsx LtdShun Tak HldgsEast Japan Railway CBhp Billiton LimitedCanon IncSembcorp MarineNsk LtdHarvey Norman HldgsInsurance Australia

22,8285,0003,7013,000

100,5348,000

66,0009,748

22,0004,7386,2001,6972,1001,0433,800

17,0003,441

130,0001,3002,5382,000

34,00012,00018,94721,478

1631591571561471471451381361351261241221131131081079994858177757272

*

**

**

***

*

*

Rio Tinto Nihon Kohden Corp Coca-Cola Amatil LtdBluescope Steel Ltd Yamato Holdings Co LSingapore TelecommunJfe Shoji Hldgs Fujitsu Cathay Pacific AirwaJupiter TelecommunicKose Corporation Leighton Holdings Honda Motor Co Onesteel Hang Lung PropertiesRolls Royce Group Iluka Resources Xstrata Plc Ngk Spark Plug Co Asics Corp Musashi Seimitsu Crown Limited Carlsberg As International Power Rolls Royce Group

11,4879,500

16,73053,0218,000

46,00028,00014,00065,000

914,1004,4342,700

38,96323,0008,819

24,5653,3413,0004,0002,4003,267

2764,204

13,368,326

132125116108107106103929088868483817666574938373726201919

*****

*

**

**

*

*

*



20



Porsche Automobil HoSuncorp Metway LimitJfe Holdings IncMitsubishi Ufj FinanUol Group LimitedMazda Motor CorpUnited Overseas BankSumitomo Mitsui FinaChallenger FinancialSun Hung Kai PropertHutchison WhampoaRio Tinto LimitedNidec CorporationTelecom Corp of NewOrix CorporationMitsubishi Estate CoWestfield GroupHong Kong Electric HNippon Yusen KkJsr CorpSekisui HouseBridgestone CorpCredit Saison CoNtt Urban DevelopmGunze Ltd

8558,5701,900

11,60025,00027,0005,0001,400

15,9013,0006,000

784500

20,915620

2,0002,1324,5006,0001,0002,0001,0001,500

172,000

6767656261616049484443414140383226252321181818169

**

*

Rio Tinto Limited Capitaland Ltd Fresnillo Plc Hong Kong Exchanges

9916,000

890600

17161111

*



21



Groupe Eurotunnel SaEsprit Holdings Ltd

525600

54

VVTacoma Employes’ Retirement SystemInternational Equity Holdings


22

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnAustraliaAmcor LimitedAmp LimitedAsciano GroupAsx LtdAustralia & New ZealBhp Billiton LimitedBluescope Steel LtdBoral LtdBrambles LtdChallenger FinancialCoca-Cola Amatil LtdCommonwealth Bank OfCrown LimitedCslHarvey Norman HldgsIluka ResourcesInsurance AustraliaLeighton HoldingsLend Lease CorpNational Australia BOil SearchOnesteel

MATFININDFINFINMATMATMATINDFINCSTFINCDIHTHCDIMATFININDFINFINENRMAT

055,007

00

30,77814,98153,02160,816

00

16,7300

33,8257,535

51,14124,565

04,434

30,47000

38,963

42,2790

100,5343,441

24,14517,519

00

22,82815,901

07,445

30,5580

70,0880

21,4780

13,94418,51434,015

0

3.7373.9451.079

29.90513.33128.0692.0453.2904.8181.8116.961

31.5305.877

25.9922.6682.3122.838

18.9995.667

18.1424.4142.086

4.8365.7541.461

31.06621.52533.2992.5865.3757.1313.0098.658

45.6727.881

29.5303.7953.5133.336

31.9229.355

27.1475.6922.674

0217

00

410421108200

00

1160

199196136570

84173

00

81

2040

147107520583

00

163480

340241

0266

0720

130503194

0

0.00.30.00.00.60.60.20.30.00.00.20.00.30.30.20.10.00.10.30.00.00.1

0.20.00.20.10.60.70.00.00.20.10.00.40.30.00.30.00.10.00.20.60.20.0

NA49.20

NANA

61.4620.2026.4364.95

NANA

26.76NA

36.9614.9642.2551.92

NA70.5167.94

NANA

29.84



23

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnAustralia (cont.)Origin Energy LtdQantas AirwaysRio Tinto LimitedRio Tinto LimitedSuncorp Metway LimitToll Hldgs LtdWesfarmers LtdWestfield GroupWestpac Banking Corp

DenmarkCarlsberg As

FranceAlstomAxaCredit Agricole SaGroupe Eurotunnel SaLafargeSanofi-Aventis

ENRINDMATMATFININDCSTMATFIN

CST

INDFINFINENRMATHTH

15,323122,149

932991

45,95240,5158,902

27,94424,125

9,480

22,51015,316

136,48528,6497,4944,744

0121,881

1,7160

54,52219,625

030,07610,710

9,204

24,2070

120,16429,174

024,754

11.8361.625

42.20117.0585.4175.053

18.3119.200

16.371

64.134

58.98818.78112.4505.667

67.67858.729

14.4032.524

52.28218.6227.8377.528

23.37912.26723.167

72.352

72.89527.04120.87310.21989.38373.304

1811983917

249205163257395

4,104

608608

1,328288

1,699162507279

4,263

0308900

427148

0369248

5,107

666666

1,7650

2,508298

01,8156,385

0.30.30.10.00.40.30.20.40.66.1

0.90.9

2.00.42.50.20.80.46.3

0.00.40.10.00.50.20.00.40.36.1

0.80.8

2.10.03.00.40.02.27.7

23.7355.3323.899.17

48.2948.9930.7638.3241.5141.95

12.8112.81

23.5743.9867.6682.2837.7124.8246.52



24

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnGermanyAdidas AgAllianz SeBayer AgDaimler AgE.On AgHeidelbergcement AgLinde AgPorsche Automobil HoVolkswagen Ag

GreeceNational Bank of Gre

Hong KongBoc Hong Kong(Hldgs)Cathay Pacific AirwaEsprit Holdings LtdHang Lung PropertiesHang Seng BankHong Kong Electric HHong Kong ExchangesHutchison Whampoa

CDIFINHTHCDIUTLMATMATCDICDI

FIN

FININDCDIFINFINUTLFININD

10,54013,87919,264

033,350

07,742

18,33514,224

0

065,00026,80023,00010,60012,0008,400

34,000

16,17215,4269,341

27,74937,05115,7888,785

19,1909,050

35,597

66,0000

27,40000

16,5007,800

40,000

38.01292.05653.60936.16035.37537.95881.95767.04769.796

25.672

1.7521.3785.5813.310

14.0645.561

15.5746.535

52.870124.78569.21150.29042.36064.666

108.28378.566

116.337

35.812

2.1941.5796.7103.684

14.4135.484

18.1297.219

4011,2781,033

01,180

0635

1,229993

6,747

00

090

15076

14967

131222

8551,925

6471,3951,5691,021

9511,5081,053

10,924

1,2751,275

1450

18400

90141289

0.61.91.50.01.80.00.91.81.5

10.0

0.00.0

0.00.10.20.10.20.10.20.3

1.02.30.81.71.91.21.11.81.3

13.1

1.51.5

0.20.00.20.00.00.10.20.3

39.0935.5529.10

NA19.75

NA32.1217.1866.6832.92

NANA

NA14.6120.2311.313.450.03

17.9011.46



25

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnHong Kong (cont.)Shun Tak HldgsSun Hung Kai Propert

IrelandCrh

ItalyUnicredit Spa

JapanAll Nippon Airways CAsahi Glass CoAsics CorpBank of YokohamaBridgestone CorpCanon IncCentral Japan RailwaChuo Mitsui Trust HoCredit Saison CoEast Japan Railway CElpida Memory IncFuji Electric Hldg

INDFIN

MAT

FIN

INDINDCDIFINCDIINFINDFINFININDINFIND

017,000

0

0

093,00029,00039,00014,00011,800

260

21,3008,700

00

130,00020,000

38,944

379,598

82,00042,00025,000

015,00013,800

090,00022,80010,00028,200

180,000

0.62812.490

22.863

2.518

3.5648.0329.1215.358

15.70232.751

6146.0333.824

12.72760.21710.8311.658

0.75914.735

27.633

3.903

2.8718.0979.3264.914

17.99340.543

7203.8873.719

11.79472.15113.1461.854

0212

1,096

00

00

0747264209220386160

0271524

00

99295

1,243

1,0761,076

1,4811,481

235340233

0270559

0335269722371334

0.00.31.6

0.00.0

0.00.0

0.01.10.40.30.30.60.20.00.40.80.00.0

0.10.41.5

1.31.3

1.81.8

0.30.40.30.00.30.70.00.40.30.90.40.4

NA17.9813.15

NANA

NANA

NA0.812.25

-7.2314.5923.7918.03

NA-7.3320.86

NANA



26

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnJapan (cont.)Fuji Film Hld CorpFuji Heavy IndsFujitsuGunze LtdHino MotorsHonda Motor CoIhi CorporationJfe Holdings IncJfe Shoji HldgsJsr CorpJupiter TelecommunicKao CorpKddi CorpKomatsuKose CorporationKuraray CoMakita CorpMazda Motor CorpMitsubishi CorpMitsubishi Estate CoMitsubishi Ufj FinanMitsui Sumitomo Insu

INFCDIINFCDIINDCDIINDMATMATMATCDICSTTELINDCSTMATCDICDIINDFINFINMAT

19,0000

55,00033,000

08,600

188,00010,60029,00013,700

36126,000

930

4,10053,00011,000

035,10027,00063,1006,400

091,00041,00035,000

159,0005,900

012,5001,000

14,700270

18,7000

22,40000

16,00027,00041,30029,00074,700

0

31.7154.0525.4524.4573.120

27.5691.731

33.6843.700

17.132758.66721.817

5306.52415.46421.09111.11124.2012.560

18.53116.6976.198

26.274

30.0443.8986.5564.5903.809

30.8822.033

34.4003.663

20.551969.45324.795

5651.42118.78624.46010.94531.8312.245

20.28315.7705.383

27.643

6030

300147

0237325357107235274567494

086

589266

0650451391168

0355269161606182

0430

4302262464

0421

00

50961

838457402

0

0.90.00.40.20.00.40.50.50.20.30.40.80.70.00.10.90.40.01.00.70.60.2

0.00.40.30.20.70.20.00.50.00.40.30.60.00.50.00.00.60.11.00.50.50.0

-4.84NA

20.853.00NA

12.3317.442.13

-0.9920.7727.7815.057.58NA

17.00-0.6832.19

NA10.44-5.16

-12.086.34



27

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnJapan (cont.)Musashi SeimitsuNabtesco CorpNgk Spark Plug CoNidec CorporationNihon Kohden CorpNikon CorpNippon Tel & Tel CorNippon Yusen KkNissan Motor CoNomura Holdings Inc.Nsk LtdNtt Urban DevelopmOmron CorpOrix CorporationPanasonic CorpRyohin Keikaku CoSecom CoSekisui HouseSeven & I Holdings CShin-Etsu ChemicalShinko Elec IndsSony Corp

CDIMATCDIINFHTHCDITELINDCDIFININDFININFFINCDICDIINDCDICSTMATINFCDI

2,4000

19,0006,1009,500

37,00010,38974,00036,10029,600

0259

01,840

00

6,40018,0007,2006,0009,800

10,600

019,00016,0006,600

045,00016,98980,000

051,60012,000

27619,7002,460

22,0003,000

020,000

00

19,70014,400

15.5059.8889.546

60.63113.14217.35040.6284.3226.0738.4375.079

969.06314.45860.21713.49442.18340.62810.15723.52746.43212.39626.170

19.18811.96212.79981.42116.74218.33946.4623.8766.7796.1766.221

920.31018.92061.20514.77651.93550.4839.047

24.01361.65217.85929.653

370

181370125642422320219250

0251

0111

00

260183169279121277

0227205537

0825789310

031975

254373151325156

0181

00

352427

0.10.00.30.50.21.00.60.50.30.40.00.40.00.20.00.00.40.30.30.40.20.4

0.00.30.20.60.01.00.90.40.00.40.10.30.40.20.40.20.00.20.00.00.40.5

24.50NA

34.7534.7628.835.95

16.01-9.8311.62

-26.79NA

-4.38NA

1.64NANA

24.26-9.923.32

33.9444.4213.84



28

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnJapan (cont.)Sumitomo Electric InSumitomo ForestrySumitomo Heavy IndSumitomo Mitsui FinaSumitomo Rlty&DevT&D Holdings IncTdk CorpTokio Marine HoldingTokuyama CorpTokyo ElectronTokyo Tatemono CoToshiba CorpToyota Motor CorpYahoo Japan CorporatYamato Holdings Co L

NetherlandsAegon NvEads(Euro Aeronautic

New ZealandTelecom Corp of New

INDCDIINDFINFINMATINFFINMATINFFININFCDIINFIND

FININD

TEL

17,60023,000

020,10020,000

04,6007,800

0000

25,0000

8,000

00

76,945

00

115,00021,500

08,4506,700

034,0004,500

85,00059,00029,400

7830

113,96023,793

97,860

11.2568.4474.467

40.73218.35528.70947.05427.6737.348

48.4015.5863.628

38.037318.70213.328

6.14816.145

1.762

13.1128.4324.892

34.95818.35027.14057.96629.0397.349

63.9974.9035.261

39.873340.64916.474

8.47922.430

1.933

198194

0819367

0216216

0000

9510

10716,315

000

136

00

563752

0229388

0250288417310

1,172267

019,530

966534

1,500

189

0.30.30.01.20.50.00.30.30.00.00.00.01.40.00.2

24.2

0.00.00.0

0.2

0.00.00.70.90.00.30.50.00.30.30.50.41.40.30.0

23.5

1.20.61.8

0.2

17.180.82NA

-12.940.57NA

23.865.91NANANANA

5.67NA

24.557.94

NANANA

12.13



29

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnNew Zealand (cont.)

NorwayStatoilhydro Asa

RussiaGazprom

SingaporeCapitaland LtdDev Bk of SingaporeSembcorp MarineSingapore TelecommunUnited Overseas BankUol Group LimitedVenture Corporation

SpainIberdrola SaIberdrola SaTelefonica Sa

ENR

ENR

FINFININDTELFINFININF

MATUTLTEL

53,730

30,150

72,50017,00035,00087,00014,000

00

91,8348,878

82,502

67,230

0

66,5000

69,00041,00019,00025,00017,000

062,76159,033

19.669

20.240

2.5638.1531.8592.073

10.1432.2804.823

7.8558.107

22.611

22.388

23.260

2.6409.4252.2572.307

11.9092.4416.380

8.1869.801

27.560

136

1,0571,057

610610

18613965

180142

00

712

72172

1,8652,659

189

1,5051,505

00

1760

15695

22661

108822

0615

1,6272,242

0.2

1.61.6

0.90.9

0.30.20.10.30.20.00.01.1

1.10.12.83.9

0.2

1.81.8

0.00.0

0.20.00.20.10.30.10.11.0

0.00.72.02.7

12.13

13.8213.82

14.9214.92

2.9916.8823.3713.6618.87

NANA

13.43

4.2124.1221.8917.15



30

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnSwedenSandvik AbSkf AbSwedbank AbVolvo(Ab)

SwitzerlandAbb LtdCredit Suisse GroupNestle SaRoche Holdings AgUbs AgZurich Financial Ser

United Arab EmiratesDp World Limited

United KingdomAstrazenecaBae SystemsBarclaysBg GroupBritish Airways

INDINDFININD

INDFINCSTHTHFINFIN

IND

HTHINDFINENRIND

00

103,3000

46,24122,17142,46513,85775,3732,646

132,232

34,208146,148

055,070

0

62,38545,178

063,600

027,785

00

89,5550

132,232

090,776

257,9790

80,703

7.38912.2615.7956.144

15.70545.60737.626

135.81012.220

175.992

0.361

43.9795.5754.661

16.7652.054

11.01115.6597.8669.224

20.04555.41442.558

161.42218.282

237.556

0.560

44.8465.5855.918

17.3853.527

00

5990

599

7261,0111,5981,882

921466

6,604

4848

1,504815

0923

0

687707

0587

1,981

01,540

00

1,6370

3,177

7474

0507

1,5270

285

0.00.00.90.00.9

1.11.52.42.81.40.79.8

0.10.1

2.21.20.01.40.0

0.80.80.00.72.4

0.01.80.00.02.00.03.8

0.10.1

0.00.61.80.00.3

NANA

98.39NA

98.39

30.9121.5013.1118.8649.6034.9824.62

55.1355.13

3.260.19NA

4.28NA



31

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnUnited Kingdom (cont.)Cairn Energy PlcCarnival PlcCentral African MiniCentricaFresnillo PlcGlaxosmithklineHsbc HldgsImperial Tobacco GroInternational PowerMan GroupReckitt Benckiser GrRio TintoRio TintoRolls Royce GroupRolls Royce GroupRoyal Bank of ScotlaRoyal Dutch ShellTullow Oil PlcUnilever PlcXstrata Plc

ENRCDIMATUTLMATHTHFINCSTUTLFINCSTMATINDINDINDFINMATENRCSTMAT

23,3830

1,516,199227,86569,18085,755

265,26275,290

182,135183,68813,46718,01211,487

140,20713,368,3261,254,820

75,97042,70744,234

197,138

18,48420,961

1,042,265304,71968,290

0201,17435,278

177,9310

23,73541,288

0131,388

02,269,880

85,91054,39148,972

193,797

38.56926.4650.1773.6728.564

17.5978.275

25.9873.9204.570

45.55234.66611.4955.9530.0010.636

24.96715.43923.45110.825

44.57434.0980.3124.024

12.34719.66411.45128.9164.6225.297

48.90842.67911.2757.530

NA0.847

28.57618.04128.43614.754

9020

268837592

1,5092,1951,957

71483961362413283519

7981,897

6591,0372,134

21,805

824715325

1,226843

02,3041,020

8220

1,1611,762

0989

01,9222,455

9811,3932,859

23,920

1.30.00.41.20.92.23.32.91.11.20.90.90.21.20.01.22.81.01.53.2

32.4

1.00.90.41.51.00.02.81.21.00.01.42.10.01.20.02.32.91.21.73.4

28.7

15.57NA

76.1611.1144.9513.0939.4211.2719.6622.759.04

23.11-1.9126.48

NA33.0816.3517.0621.2636.3020.70



32

Name SectorShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnUnited StatesNews Corporation CDI 0 9,748 10.809 14.200 0

0138138

0.00.0

0.20.2

NANA


1


9/30/99Inception

DateInception

ReturnMetropolitan West Barclays Aggregate Barclays Aggregate + 0.75%

Fixed Income Composite Barclays Aggregate

Indices Barclays Aggregate Citigroup LPF 91-Day Treasury Bill Citigroup Non-US WGBI Citigroup HY Cash Pay

7.473.743.93

7.473.74

3.745.460.067.33

13.38

13.265.605.98

13.265.60

5.606.440.11

13.1737.81

13.885.726.29

13.885.72

5.724.500.166.68

44.77

13.1610.5611.31

13.1610.56

10.5614.170.37

16.0721.20

7.166.417.16

7.166.41

6.417.412.82

10.155.09

6.075.135.88

6.075.13

5.136.013.117.065.52

6.766.30

6.307.323.116.666.31

3/31/02 3/31/02 3/31/02

9/30/81 9/30/81

Since 9/30/81 9/30/81 9/30/81 9/30/81 9/30/81

6.575.766.51

9.999.49

9.4910.725.629.72


Total Returns of Fixed Income PortfoliosPeriods Ended 9/30/09

2

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

W F*a

W F

* a

W F

*a

W F*

a

W F*a W F *

a W F * aF *

a Med75th

95th

25th

5thRat

e of

Ret

urn

W Metropolitan WestF Fixed Income Composite* Citigroup LPF a Barclays Aggregate MedianNumber of Funds


7.47 (26)7.47 (26)5.46 (40)3.74 (63)

4.69857

13.26 (30)13.26 (30)6.44 (58)5.60 (67)

7.86853

13.88 (30)13.88 (30)4.50 (83)5.72 (74)

9.10852

13.16 (38)13.16 (38)14.17 (30)10.56 (63)

11.94

847

7.49 (33)7.49 (33)8.81 (12)7.06 (39)

6.52833

7.16 (24)7.16 (24)7.41 (19)6.41 (41)

6.05811

6.07 (17)6.07 (17)6.01 (19)5.13 (51)

5.17766

6.76 (27)7.32 (11)6.30 (53)

6.34573

VVTacoma Employes’ Retirement SystemTreasury Yield Curve


3

Yie

ld

0.0 5.0 10.0 15.0 20.0 25.0 30.0-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

WF

*

a

TreasuryYrs to Mat Yield

1.00 5.00 10.00 15.00 20.00 25.00

0.40 1.90 3.52 4.23 4.30 4.24

Description Legend Yrs to Mat YieldMetropolitan WestFixed Income CompositeCitigroup LPFBarclays Aggregate

WF*a

11.65 11.65 3.00 6.56

5.52 5.52 4.15 3.55


Metropolitan WestQuarter Ended 9/30/09

1

Val

ue

9/02 9/03 9/04 9/05 9/06 9/07 9/08 9/090.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

LegendReturn


ValueTotalBarclays Aggregate + 0.75%

7.167.16

6.576.51

1.611.61

VVTacoma Employes’ Retirement SystemFixed Income Portfolio Characteristics

Metropolitan West vs. Barclays Aggregate

2

Effective Duration

0.0

4.5

9.0Years to Effective Maturity

0.0

7.5

15.0

Yield to Effective Maturity

0.0

4.5

9.0Current Yield

0.0

4.5

9.0

IndexPortfolio

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index5.624.41

5.094.38

5.384.68

4.584.47

4.483.71

5.663.73

4.344.19

6.584.43

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index9.207.05

10.407.05

8.857.48

8.117.11

7.495.50

10.235.73

7.666.72

11.656.56

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index4.694.90

4.564.51

5.415.07

6.855.27

6.093.99

6.354.06

6.004.14

5.523.55

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index4.895.32

5.405.24

5.525.32

5.795.36

6.105.11

6.095.00

5.864.83

5.574.59

Characteristics represent 84% of portfolio’s market value.

VVTacoma Employes’ Retirement SystemFixed Income Structural Characteristics


3

Quarter $(MIL)#

BondMaturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTL03/31/0206/30/0209/30/0212/31/0203/31/0306/30/0309/30/0312/31/0303/31/0406/30/0409/30/0412/31/0403/31/0506/30/0509/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/07Barclays Aggregate

80.6186.0180.9178.1180.3190.0190.3215.6217.1210.8214.5232.9229.9232.7229.5227.9219.8216.0206.1206.5205.4224.4225.4226.7

13,187.4

174336534665748076757375889089908686877777789190

8,492

30.112.631.125.425.822.321.221.431.016.142.224.115.09.38.86.33.84.34.76.53.93.28.5

12.60.0

55.167.446.749.658.358.058.557.349.763.441.253.353.665.567.171.773.373.471.573.573.776.662.460.488.5

3.12.02.10.11.53.11.91.32.72.15.6

10.916.08.6

10.29.38.89.2

10.69.69.39.58.7

11.65.1

11.718.020.124.914.316.618.319.916.618.311.111.715.416.613.812.714.113.113.210.413.210.720.515.46.4

AAAAA AA AA A A A A A A

AA AA AA AA AA AA AA AA AA AA AA

AAAAAAAA

AAA

624172921171417121111122019191919212923251916157

0000011112011111101110002

652418141459

181826293329313336444533414657433937

03537

141399

1068655431001100

10

1611281922141413187

2187323

-4-43542

18150

0221819122727191623172123272625252524231715182542

2124667677676666433222220

1115131218151418201410128887997553322




4

Quarter $(MIL)#

BondMaturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTL03/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/09

Barclays Aggregate

224.2215.4205.7197.4185.1182.7208.8

13,187.4

117128133123149128144

8,492

7.313.315.1-6.3-4.34.49.7

0.0

60.762.466.483.475.380.054.7

88.5

13.710.07.78.97.77.3

10.3

5.1

18.414.310.814.021.38.3

25.2

6.4

AA AA AA AA AA AA AA

AAA

15161522202627

7

0000000

2

191694454

37

1334578

10

262218-593

10

0

33425371585449

42

2112220

0

3111343

2


VVTacoma Employes’ Retirement SystemFixed Income Return Versus Duration

Compared to Barclays AggregateQuarter Ended 9/30/09

5

Ret

urn

Duration

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0W

n

a

Description Legend Duration Total ReturnMetropolitan West91-Day Treasury BillBarclays Aggregate

Wna

6.580.254.43

7.470.063.74

VVTacoma Employes’ Retirement SystemFixed Income Return Analysis


6

QuarterBarclays

AggregateTotal

Return

Net Management EffectInterest RateAnticipation

Sector/Issue Trading Total

06/0209/0212/02

03/0306/0309/0312/03200303/0406/0409/0412/04200403/0506/0509/0512/05200503/0606/0609/0612/062006

3.704.591.57

1.402.50

-0.150.324.112.65

-2.443.200.954.34

-0.473.01

-0.680.592.43

-0.64-0.083.811.244.33

-0.78-0.743.43

2.456.191.423.05

13.702.11

-1.613.151.905.60

-0.082.47

-0.150.552.800.040.233.912.306.59

-0.100.360.10

0.350.10

-0.01-0.000.44

-0.130.400.05

-0.110.200.050.26

-0.12-0.020.180.00

-0.070.11

-0.000.05

-2.87-4.784.90

4.0310.463.053.80

22.92-1.07-0.200.982.041.740.27

-0.380.53

-0.090.330.460.280.120.351.22

-1.50-0.90-3.15

-3.33-6.87-1.47-1.07

-12.240.660.63

-1.07-0.99-0.780.07

-0.420.110.07

-0.170.220.10

-0.130.710.90

-4.48-5.321.86

1.063.691.572.739.59

-0.540.82

-0.040.951.260.40

-0.540.53

-0.040.370.690.310.101.062.26



7

QuarterBarclays

AggregateTotal

Return



03/0706/0709/0712/07200703/0806/0809/0812/08200803/0906/0909/09

From Inception

1.50-0.522.853.006.962.17

-1.02-0.484.575.240.121.793.74

5.76

1.56-0.362.872.977.182.00

-1.20-1.59-0.63-1.460.545.397.47

6.57

0.02-0.180.160.470.470.35

-0.21-0.170.100.070.010.900.13

0.37

-0.040.000.22

-0.84-0.66-0.880.24

-0.49-3.37-4.461.714.213.06

3.32

0.080.34

-0.360.330.400.35

-0.21-0.46-1.94-2.25-1.30-1.510.53

-2.88

0.060.160.02

-0.030.22

-0.17-0.18-1.11-5.20-6.700.433.603.73

0.81

VVTacoma Employes’ Retirement SystemFixed Income Portfolio Activity


8

AdditionsSecurity Name Coupon Maturity Quantity $(000) New

DeletionsSecurity Name Coupon Maturity Quantity $(000) Elim

Cash Equivalents FNMA Cl 30 - Tba OctGNMA I Sf 30 - Tba OGNMA I Sf 30 - Tba OBac Cap Tr Xv Gtd CaBear Stearns CommercCentennial CommunicaCitigroup Inc Sr Nt Citigroup Inc Sr Nt Citigroup Inc Sr Nt Commercial Mortgage Credit Suisse CommerCredit Suisse CommerCredit Suisse New Yo09-009a-Vm General Elec Cap CorGeneral Elec Cap CorIndiantown CogeneratJp Morgan Chase CommJp Morgan Chase CommLb-Ubs Commercial MoMl-Cfc Commercial MoMerrill Lynch Co IncMl-Cfc Commercial MoPurchase Turnover

5.405.504.505.000.006.088.126.128.126.386.025.315.475.303.181.320.859.775.886.065.495.176.885.86

10/01/09 3/25/38 4/15/38 6/15/38 6/01/56 6/11/50 2/01/14 5/15/18 7/15/39 8/12/1412/10/4912/15/39 9/15/39 8/13/19 4/25/13 5/22/13 5/05/2612/15/20 2/15/51 2/15/51 2/15/4012/12/49 4/25/18 9/12/49

10,5006,100

13,2966,1202,500

1751,000

700900750240

1,2651,220

29514,666

275700540500195210

1,2901,000

420

10,5006,380

13,4706,3471,389

1191,015

6891,007

775116

1,0271,037

302467258551530425139136

1,0871,052

287

***********************

FNMA Cl 30 - Tba JulFNMA Cl 30 - Tba JulFNMA Cl 30 - Tba JulGNMA I Sf 30 - Tba JBank of America CorpCedar Brakes Ii L L Citigroup Inc Sr Nt Citigroup Inc Sr Nt Comcast Corp New FloConsolidated Edison Continental AirlinesContinental AirlinesCredit Suisse First Duke Energy CarolinaFhgld Pool #g01673 Fhlm Pool A72860 Fhlm Pool G12399 Fhgld Pool #g02884 Fhlm Pool G04079 Fhgld Pool #g04711 Fhgld Pool #g05119 Fhgld Pool #g13475 Fhgld Pool #h03161 Fhgld Pool #e01252 Sales Turnover

4.505.005.504.508.009.886.888.501.436.656.557.265.735.105.506.006.006.005.506.006.506.006.506.00

3/25/38 3/25/38 3/25/38 3/15/3912/29/49 9/01/13 3/05/38 5/22/19 7/14/09 4/01/19 8/02/20 9/15/21 3/25/36 4/15/18 4/15/34 2/15/38 9/15/21 4/15/37 3/15/38 9/15/38 9/15/38 1/15/24 9/14/3711/15/17

1,4216,1209,4106,9601,625

11470090032570012614

2,28375019

17920811211111816719723120

1,4186,2319,4106,9471,357

11670291532578111913

1,45177620

18922211811612417821124721

*****

***

*



9



Morgan Stanley ABS CMorgan Stanley CapitRalcorp Hldgs Inc NeUnited States Treas United States Treas Williams Cos Inc Del

Purchase Turnover

5.365.816.624.253.757.88

11/12/4112/12/49 8/15/39 5/15/3911/15/18 9/01/21

4201,8151,645

40065

1,000

3191,5531,732

41467

1,082

******

Fhgld Pool #a14189 Fhgld Pool #a24156 Fhgld Pool #a33262 Fhgld Pool #c46104 2389b-Cd Fannie Mae FNMA Pool #254232 FNMA Pool #323715 FNMA Pool #394854 FNMA Pool #555284 FNMA Pool #555177 FNMA Pool #633698 FNMA Pool #655928 FNMA Pool 725027 FNMA Pool #734922 FNMA Pool #735207 FNMA Pool 735883 FNMA Pool #844773 Ford Motor Credit CoGe Commercial MortgaHsbc Home Equity LoaMastr Asset SecuritiMorgan Stanley ABS CMsac 2007-Nc3 A2a Sales Turnover

4.006.505.506.506.007.316.506.006.507.504.867.507.005.004.507.006.005.207.384.771.455.507.570.31

10/15/3310/15/31 2/15/35 9/15/29 3/15/16 1/17/40 3/25/22 5/25/29 5/25/2711/14/17 1/25/33 2/25/31 8/25/3211/25/33 9/25/33 4/25/34 3/25/3312/25/35 2/01/11 6/10/4811/20/3612/25/1711/15/36 5/25/37

425416

126243338

1122992218

12278566171

2863,420

4933

25991

427436

127259359

1123

1032420

12779606474

2592,801

4133

26076

**



10



Purchase Turnover

Structured Asset Verizon Wireless I-A-2 Wells Fargo Mortgage

Sales Turnover

6.008.504.495.50

10/25/3111/15/1811/25/33 1/25/36

0575195

1,032

0685186808

*

*

VVTacoma Employes’ Retirement SystemFixed Income Holdings


11

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P

EffectiveMaturity Dura Yield

$(000)

% Port

Buy/HoldReturn

Asset BackedDelta Air Lines PassMastr Asset SecuritiContinental AirlinesVanderbilt Aquisi-A-Abfs2002-2-A-7 I-A-2 Wells Fargo MortgageHsbc Home Equity LoaMsac 2007-Nc3 A2a FinanceCountrywide Finl CorCountrywide Home LoaMorgan Stanley Glbl Goldman Sachs Group Fairfax Finl Hldgs LCountrywide Finl CorCs First Boston Ny BDuke Rlty Ltd PartneDeutsche Bk Ag Sr NtSimon Ppty Group Lp National Australia B

7.115.506.556.575.224.494.771.450.31

4.504.006.750.657.755.805.006.254.885.305.35

3/18/1312/25/17 8/02/20 5/07/27 7/15/3311/25/33 6/25/3411/20/36 5/25/37

6/15/10 3/22/11 4/15/11 2/06/12 4/26/12 6/07/12 5/15/13 5/15/13 5/20/13 5/30/13 6/12/13

1,660

761724

1,70032

1,9903,4001,259

822

350700340750800300550550

1,000810

1,000

1,660

728598

1,70032

1,7953,4001,210

731

350700340750800300550550

1,000810

1,000

Ba2NR

Baa2AaaAaaNRAaaAaa

Baa2

A2A2A2A1

Ba1A2

Aa1Baa2Aa1A3

Aa1

BBB-AAA

A-AAAAAAAAAAAAAAA

B-

AAAA

BBB-A

A+BBB

A+A-

AA

9/18/1112/25/17 8/02/14 5/07/27 7/15/3311/25/33 6/25/34 6/20/12 5/25/37

6/15/10 3/22/11 4/15/11 2/06/12 4/26/12 6/07/12 5/15/13 5/15/13 5/20/13 5/30/13 6/12/13

1.796.733.75

10.7013.8214.7513.30-0.340.44

0.691.431.430.102.222.443.263.123.283.253.31

8.525.397.986.515.314.806.709.201.00

2.982.862.351.367.913.633.286.492.974.633.43

1,619

733565

1,71132

1,7162,6131,005

60810,603

354711363738797316582546

1,065828

1,066

0.920.420.320.970.020.981.490.570.356.04

0.200.410.210.420.450.180.330.310.610.470.61

6.772.493.95

15.113.337.218.34

27.284.33

3.224.013.413.204.466.304.76

12.084.977.114.18



12

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Finance (cont.)Morgan Stanley Vr 01Morgan Stanley Sr NtCapital One Finl CorFarmers Ins ExchangeCitigroup Inc Sr Nt Gmac Llc Nt Flt 144aGoldman Sachs Group Goldman Sachs Group Goldman Sachs Grp InMorgan Stanley Nt FlWachovia Corp New SuMorgan Stanley Fr 5.Bear Stearns Cos IncCredit Suisse Ny BrhGoldman Sachs Group Highwoods Rlty L P NWea Fin Llc Sr Nt 14Merrill Lynch Co IncGeneral Elec Cap CorBank Amer Fdg Corp MCitigroup Inc Sr Nt Hbos Plc Medium Tm S

0.856.007.386.006.382.561.035.130.905.000.745.457.256.006.157.507.136.885.635.656.136.75

1/09/14 5/13/14 5/23/14 8/01/14 8/12/1412/01/14 1/12/15 1/15/15 7/22/1510/15/1510/28/15 1/09/17 2/01/18 2/15/18 4/01/18 4/15/18 4/15/18 4/25/18 5/01/18 5/01/18 5/15/18 5/21/18

675800900495

0838300600300910400200

1,3151,633

500917

1,1000

720250

01,600

675800900495750838300600300910400200

1,3151,633

500917

1,1001,000

720250700

1,600

A2A2

Baa1Baa2

A3CaA1A1A1A2A2A2

Aa3Aa2A1

Ba1A2A2

Aa2A2A3

Baa2

AA

BBBBBB+

ACCC

AAAA

A+A

A+AA

BBB-A-A

AA+AA

BBB-

1/09/14 5/13/14 5/23/14 8/01/14 8/12/1412/01/14 1/12/15 1/15/15 7/22/1510/15/1510/28/15 1/09/17 2/01/18 2/15/18 4/01/18 4/15/18 4/15/18 4/25/18 5/01/18 5/01/18 5/15/18 5/21/18

-0.133.943.873.964.11

-0.53-0.114.56

-0.17-0.250.895.846.256.476.375.876.136.236.526.506.396.05

2.584.444.579.915.577.981.864.172.187.012.535.425.135.305.388.216.476.095.705.846.368.55

628852

1,004422775649288627279823360200

1,5021,710

526878

1,1471,052

717247689

1,427

0.360.490.570.240.440.370.160.360.160.470.200.110.860.970.300.500.650.600.410.140.390.81

4.636.64

10.037.50NA

11.649.677.568.377.01

14.858.71

10.096.397.95

12.7814.08

NA6.73

13.36NA

20.19



13

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Finance (cont.)Metlife Inc Sr Db 6.Goldman Sachs Grp InBanc One Corp Sub NtCitigroup Inc Sr Nt Credit Suisse New YoFarmers Exchange Ca Security Benefit LifNationwide Mut Ins CCitigroup Inc Glbl SCitigroup Inc Sr Nt Citigroup Inc Sr Nt Bank of America CorpWells Fargo & Co NewBank of America Corp Government & AgencyUnited States Treas United States Treas United States Treas United States Treas United States Treas

6.827.508.538.505.307.057.456.600.966.888.138.007.988.13

2.003.752.381.754.25

8/15/18 2/15/19 3/01/19 5/22/19 8/13/19 7/15/2810/01/33 4/15/34 8/25/36 3/05/38 7/15/3912/29/4912/31/4912/31/49

1/15/1611/15/18 1/15/27 1/15/28 5/15/39

1,0001,3502,320

9000

1,3041,4821,6031,0001,400

01,625

875700

1,0660

1,6174,273

0

1,0001,3502,320

0295

1,3041,4821,6031,000

700900

0875700

1,06665

1,6174,273

400

A2A1A1A3

Aa1Baa2Ba2A3

Baa1A3A3B3

Ba3B3

GOVGOVGOVGOVGOV

A-AAA

A+BBB+

B+A-A-AAB

A-B

AAAAAAAAAAAAAAA

8/15/18 2/15/19 3/01/19 5/22/19 8/13/19 7/15/2810/01/3310/15/24 8/25/36 3/05/38 7/15/39 1/30/40 3/15/30 5/15/39

1/15/1611/15/18 1/15/27 1/15/28 5/15/39

6.636.756.426.477.529.160.867.67

-7.8711.8911.364.425.187.43

5.847.56

13.8415.1216.32

5.215.527.218.244.978.150.009.233.886.857.159.698.899.22

2.783.314.184.214.05

1,1131,5442,526

0302

1,167190

1,264515702

1,0070

801622

35,922

1,10667

1,6994,094

4147,381

0.630.881.440.000.170.660.110.720.290.400.570.000.460.35

20.46

0.630.040.972.330.244.20

9.445.593.28

13.09NA

35.9383.9633.997.91

16.26NA

8.8712.678.90

2.71NA

-3.67-0.16

NA



14

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

IndustrialComcast Corp New FloHealth Care Ppty InvFord Motor Credit CoAquila Inc Sr CreditCenterpoint Energy RGeneral Elec Cap CorCedar Brakes Ii L L Barrick Gold FinanceSabine Pass Lng L P Qwest CommunicationsGeneral Elec Cap CorGeneral Elec Cap CorKansas City Pwr & LtDuke Energy CarolinaBarrick Gold Corp SrHca Inc Sr Secd Nt14Indiantown CogeneratWilliams Cos Inc DelGeneral Elec Cap CorGeneral Elec Cap CorRalcorp Hldgs Inc NeSouthern Un Co New J

1.434.887.38

11.887.881.329.886.137.257.505.900.566.385.106.958.509.777.880.856.886.637.20

7/14/09 9/15/10 2/01/11 7/01/12 4/01/13 5/22/13 9/01/13 9/15/1311/30/13 2/15/14 5/13/14 9/15/14 3/01/18 4/15/18 4/01/19 4/15/1912/15/20 9/01/21 5/05/26 1/10/39 8/15/3911/01/66

325650286490925

01,251

5301,030

525450

1,000400750310

1,070000

4000

1,000

0

6500

490925275

1,137530

1,030525450

1,000400

0310

1,070540

1,000700400

1,6451,000

Baa1Baa3Caa1Baa3Baa3Aa2

Baa3Baa1

B2Ba3Aa2Aa2

Baa1A2

Baa1Ba3Ba1

Baa3Aa2Aa2

Baa3Ba1

BBB+

BBBCCC+

BBBBBBAA+BBB

A-B+B+

AA+AAABBB

AA-

BBBB+BB+AA+AA+

BBB-BB

NA

9/15/10 2/01/11 7/01/12 4/01/13 5/22/13 9/01/13 9/15/1311/30/13 2/15/14 5/13/14 9/15/14 3/01/18 4/15/18 4/01/19 4/15/1912/15/20 9/01/21 5/05/26 1/10/39 8/15/3911/01/66

0.040.931.382.332.980.013.173.523.363.623.96

-0.116.476.936.856.226.347.63

-2.0512.2112.74-1.42

0.714.27

14.225.713.983.189.443.43

10.497.844.163.105.114.624.707.82

10.046.862.426.516.239.16

0

6540

5661,042

2581,152

583919518483884434

0363

1,118530

1,082551419

1,732788

0.000.370.000.320.590.150.660.330.520.300.270.500.250.000.210.640.300.620.310.240.990.45

NA

3.7912.047.225.51NA

2.174.457.479.706.524.33

10.514.066.268.83NANANA

18.29NA

18.49



15

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.) MiscellaneousCash Equivalents Northwest Airlines Continental AirlinesBac Cap Tr Xv Gtd Ca Mortgage09-009a-Vm 2389b-Cd FNMA Pool #555284 Fhgld Pool #e01252 Fhlm Pool G12399 FNMA Pool #254232 Fhgld Pool #g13475 FNMA Pool #394854 FNMA Pool #323715 Fhgld Pool #c46104 FNMA Pool #633698 Fhgld Pool #a24156 Structured Asset FNMA Pool #655928

5.406.847.260.00

3.186.007.506.006.006.506.006.506.006.507.506.506.007.00

10/01/0910/01/12 9/15/21 6/01/56

4/25/13 3/15/1611/14/1711/15/17 9/15/21 3/25/22 1/15/24 5/25/27 5/25/29 9/15/29 2/25/3110/15/3110/25/31 8/25/32

2,886550

1,4610 0

272150289

1,953435

1,93923297

181804366157745

13,386550

1,4472,500

14,666146127269

1,745403

1,74122189

176783341157727

AaaBa3

Baa2Baa3

AaaAaaAaaAgyAaaAgyAaaAgyAgyAgyAgyAaaAaaAgy

AAABBB-

A-B

AAAAAAAAAAGYAAAAGYAAAAGYAGYAGYAGYAAAAAAAGY

10/01/0910/01/12 9/15/2112/01/39

1/25/11 3/15/1611/14/1711/15/17 9/15/21 3/25/22 1/15/24 5/25/27 5/25/29 9/15/29 2/25/3110/15/3110/25/31 8/25/32

0.002.348.08

27.21

-14.385.446.256.618.808.899.94

10.9912.0411.7511.5112.3812.1312.17

3.259.127.791.96

23.805.887.024.945.245.555.325.865.465.846.465.866.636.25

14,074

13,386

5231,3891,389

16,686

467147131288

1,863437

1,85923794

189877368145793

8.02

7.620.300.790.799.50

0.270.080.070.161.060.251.060.130.050.110.500.210.080.45

NA5.14

11.18NA

NA0.833.442.842.242.132.241.922.391.854.561.855.832.12



16

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Mortgage (cont.)FNMA Pool #555177 FNMA Pool 735883 FNMA Pool #734922 Fhgld Pool #a14189 FNMA Pool 725027 2733e-Me Fhgld Pool #g01673 FNMA Pool #735207 Fhgld Pool #a33262 FNMA Pool #844773 Wells Fargo MortgageCredit Suisse First Morgan Stanley ABS CFhgld Pool #g02884 Fhgld Pool #h03161 Fhlm Pool A72860 Fhlm Pool G04079 FNMA Cl 30 - Tba JulFNMA Cl 30 - Tba JulFNMA Cl 30 - Tba OctFNMA Cl 30 - Tba JulGNMA I Sf 30 - Tba O

4.866.004.504.005.005.005.507.005.505.205.505.737.576.006.506.005.505.005.505.504.504.50

1/25/33 3/25/33 9/25/3310/15/3311/25/33 1/15/34 4/15/34 4/25/34 2/15/3512/25/35 1/25/36 3/25/3611/15/36 4/15/37 9/14/37 2/15/38 3/15/38 3/25/38 3/25/38 3/25/38 3/25/38 4/15/38

652

2,0843,015

6222,5732,337

439992758

1,2781,0322,302

7252,5902,7542,6372,6596,1209,410

01,421

0

553

2,0242,937

6182,4512,337

420936717

1,2070

19466

2,4792,5222,4582,548

00

6,1000

13,296

AaaAaaAaaAaaAaaAaaAaaAaaAaaAaa

Baa2B3

AaaAaaAaaAaaAaaAgyAgyAgyAgyAaa

AAAAAAAAAAAAAAAAAAAAAAAAAAAAAA

NRCCCAAAAAAAAAAAAAAAAGYAGYAGYAGYAAA

1/25/33 3/25/33 9/25/3310/15/33 4/25/14 1/15/34 4/15/34 4/25/34 2/15/3512/25/3511/25/16 3/25/36 1/15/10 4/15/37 9/14/37 2/15/38 3/15/38 2/25/1411/25/12 8/25/1211/25/1512/15/15

14.3513.1514.9915.612.76

14.4614.0212.4914.2314.844.19

10.890.28

14.1713.6414.3114.973.173.452.433.723.39

4.625.574.364.063.934.805.136.375.144.91

10.599.545.045.586.015.605.194.505.433.664.534.24

571

2,1383,001

6122,5492,404

4421,008

7531,259

012

4682,6232,6922,5972,666

00

6,3800

13,470

0.331.221.710.351.451.370.250.570.430.720.000.010.271.491.531.481.520.000.003.630.007.67

2.642.412.912.142.870.112.762.382.772.69

18.8819.951.762.681.872.592.682.845.48NA

2.59NA



17

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Mortgage (cont.)GNMA I Sf 30 - Tba OCommercial Mortgage Fhgld Pool #g05119 Fhgld Pool #g04711 GNMA I Sf 30 - Tba JGs Mortgage SecuritiCredit Suisse CommerCredit Suisse CommerFannie Mae Lb-Ubs Commercial MoMorgan Stanley ABS CBear Stearns CommercMorgan Stanley ABS CGe Commercial MortgaCobalt Cmbs CommerciJp Morgan Chase CommJp Morgan Chase CommCitigroup CommercialMl-Cfc Commercial MoCommercial Mortgage Morgan Stanley CapitMl-Cfc Commercial Mo

5.005.926.506.004.504.755.475.317.315.495.365.155.394.775.225.425.755.735.866.025.815.17

6/15/38 7/10/38 9/15/38 9/15/38 3/15/39 7/10/39 9/15/3912/15/39 1/17/40 2/15/4011/12/4110/12/42 3/12/44 6/10/48 8/15/48 1/15/49 2/12/49 3/15/49 9/12/4912/10/4912/12/4912/12/49

0

1,2902,5061,6146,9603,400

00

1,83700

1,1503,1003,4201,1551,450

640635

0000

6,1201,2902,3401,496

03,4001,2201,2651,594

210420

1,1503,100

01,1551,450

640635420240

1,8151,290

AaaAaaAaaAaaAaaAaaAaaAaaAaaAaaNRAaaAaaAaaAaaAaaAaaAaaAaaAa3AaaAaa

AAA

A+AAAAAAAAAAAAAAA

A+AAABBB

NRNR

AAAAAAAA-NRA+NR

AAAAAA

A+AA-

4/15/14 3/10/16 9/15/38 9/15/38 3/15/16 3/10/15 6/17/16 9/18/16 1/17/40 4/17/1710/14/16 7/12/1510/14/1512/10/14 9/15/16 1/15/17 4/12/17 2/15/16 9/14/1710/10/17 8/14/17 9/12/16

2.735.06

13.8214.423.834.615.275.38

13.045.425.334.834.954.495.445.625.655.085.544.865.865.47

4.037.746.015.614.556.158.509.096.78

12.2710.355.506.419.128.658.408.527.08

12.3419.258.428.25

6,3471,1802,4971,581

03,1881,0371,0271,703

136319

1,1362,964

0954

1,222551596287116

1,5531,087

3.620.671.420.900.001.820.590.580.970.080.180.651.690.000.540.700.310.340.160.070.880.62

NA

12.721.872.592.64

11.84NANA

2.85NANA

16.3519.7417.9216.6616.3815.8312.94

NANANANA



18

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Mortgage (cont.)Bear Stearns CommercJp Morgan Chase CommJp Morgan Chase CommMorgan Stanley ABS C TransportationUnited Air Lines Inc UtilitiesTeco Energy Inc Nt FSprint Nextel Corp NCentennial CommunicaVerizon Wireless Marathon Oil Corp SrTexas New Mexico PwrConsolidated Edison Total Portfolio

6.086.065.885.16

7.19

5.000.698.138.507.509.406.65

6/11/50 2/15/51 2/15/5110/12/52

10/01/12

5/01/10 6/28/10 2/01/1411/15/18 2/15/19 4/01/19 4/01/19

000

1,600

521

1,800455

0575800800700

175195500

1,600

521

1,800455

1,0000

800800

0

AaaAaaAaaAaa

Ba3

Baa3Ba2B2A2

Baa1Baa2

A3

BBB+BBB-

A-AAA

BB+

BBB-BB

BA

BBB+BBB-

A-

10/11/17 7/15/17 6/15/17 9/12/15

10/01/12

5/01/10 6/28/10 2/01/1111/15/18 2/15/19 4/01/19 4/01/19

5.525.465.754.95

2.33

0.120.231.996.556.766.267.08

12.6212.078.666.20

8.31

5.034.667.925.825.396.175.12

119139425

1,52185,227

508508

1,800

4421,015

0923983

05,163

0.070.080.240.87

48.54

0.290.29

1.030.250.580.000.530.560.002.94

NANANA

13.65

0.83

3.863.20NA

6.647.440.035.06

6.94


1


9/30/99Inception

DateInception

ReturnPost Advisory Group ML High Yld II Tot Ret ML High Yld II Tot Ret + 1.75%

High Yield Composite ML High Yld II Tot Ret

Indices ML High Yld II Tot Ret

9.7514.8215.25

9.7514.82

14.82

22.9141.4442.32

22.9141.44

41.44

32.7248.5449.85

32.7248.54

48.54

11.2722.3624.11

11.2722.36

22.36

4.585.216.96

4.585.21

5.21 6.04 6.03

9/30/05 9/30/05 9/30/05

9/30/05 9/30/05

Since 9/30/05

5.005.887.63

5.005.88

5.88


Active High Yield Fixed Income PortfoliosPeriods Ended 9/30/09

2

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

m

m

m

m

m m m m

Med75th

95th

25th

5th

Rat

e of

Ret

urn

Post Advisory Group High Yield Compositem ML High Yld II Tot Ret MedianNumber of Funds


9.75 (75)9.75 (75)

14.82 (17)

11.41117

22.91 (77)22.91 (77)41.44 (13)

30.27

115

32.72 (71)32.72 (71)48.54 (13)

38.63

115

11.27 (78)11.27 (78)22.36 (10)

15.64

115

3.00 (54)3.00 (54)3.96 (36)

3.24111

4.58 (54)4.58 (54)5.21 (40)

4.75106

6.04 (47)

5.8698

6.03 (72)

6.9368

VVTacoma Employes’ Retirement SystemTreasury Yield Curve


3

Yie

ld

0.0 5.0 10.0 15.0 20.0 25.0 30.0-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

m

TreasuryYrs to Mat Yield

1.00 5.00 10.00 15.00 20.00 25.00

0.40 1.90 3.52 4.23 4.30 4.24

Description Legend Yrs to Mat YieldPost Advisory GroupHigh Yield CompositeML High Yld II Tot Ret m

4.48 4.48 6.65

7.71 7.71 9.79


Post Advisory GroupQuarter Ended 9/30/09

1

Val

ue

9/05 9/06 9/07 9/08 9/090.80

0.90

1.00

1.10

1.20

1.30

LegendReturn


ValueTotalML High Yld II Tot Ret

4.585.21

5.005.88

1.221.26

VVTacoma Employes’ Retirement SystemFixed Income Portfolio CharacteristicsPost Advisory Group vs. ML High Yld II Tot Ret

2

Effective Duration

0.0

3.0

6.0Years to Effective Maturity

0.0

4.5

9.0

Yield to Effective Maturity

0.0

9.0

18.0Current Yield

0.0

12.0

24.0

IndexPortfolio

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index4.024.74

4.074.52

3.804.50

3.664.24

3.563.83

3.043.79

3.114.10

3.214.21

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index5.597.37

5.987.09

5.276.98

5.306.91

5.056.61

4.466.65

4.456.73

4.486.65

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index8.329.37

9.3810.47

9.3510.47

10.6112.42

13.0814.49

10.9713.49

9.5411.79

7.719.79

Date 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09Port

Index7.828.78

8.469.61

8.399.67

8.9411.79

10.5820.36

9.3021.57

8.5612.03

8.248.99

Characteristics represent 97% of portfolio’s market value



3

Quarter $(MIL)#

BondMaturity

<1 1-10 10-20 >20 QLTYSectors

FIN FOR GA IND MISC MTGETRAN UTL09/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/09

ML High Yld II Tot Ret

25.025.351.376.4

103.3106.8109.8110.4111.6111.6109.2111.9106.889.8

121.3127.0139.2

744,836.5

7595

116148168153158152152156164158156159178167174

1,875

9.912.914.912.222.919.816.012.713.412.03.59.9

10.311.617.013.610.8

1.6

85.282.180.085.874.977.782.083.883.384.892.586.986.686.381.786.087.5

89.6

3.33.42.91.41.41.71.32.82.62.53.32.52.32.11.30.41.7

3.8

1.71.62.20.50.70.80.70.70.70.70.70.70.70.00.00.00.0

4.9

B B B B B B B B B B B B B B B B B

BB

98

1099

10101086556588

11

12

00000000000000101

0

00000000000000000

0

8282737571717473706770767983717371

73

33637755

10857

117

1394

1

00000000000000000

0

11311111211111101

2

468

111211111111181811346

1012

13


VVTacoma Employes’ Retirement SystemFixed Income Return Versus Duration

Compared to Barclays AggregateQuarter Ended 9/30/09

4

Ret

urn

Duration

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

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

n

a

m

Description Legend Duration Total ReturnPost Advisory Group91-Day Treasury BillBarclays AggregateML High Yld II Tot Ret

nam

3.210.254.434.21

9.750.063.74

14.82

VVTacoma Employes’ Retirement SystemFixed Income Percent Invested by Sectors


5

Name

Moody’s Quality RatingsAaa Aa A Baa Ba B Other NR

Total

Government Treasury Agency Corporate Industrial Utility Finance Yankee Transportation Mortgage GNMA FHLMC FNMA Other Mortgage Municipals Cash OtherTotal

---------

---------------

---

---------------

---

2.63

---

2.63

---------

---------------

---

---------------

---

---

------

---------

---------------

---

---------------

---

---

------

---------

2.710.38

---2.33

---

---

---------------

---

---

---

2.71

---------

28.8719.903.815.16

---

0.37

---------------

---

---

---

29.24

---------

50.1639.448.071.451.20

0.25

---------------

---

0.72

---

51.13

---------

13.7211.570.421.73

---

---

---------------

---

---

---

13.72

---------

---------------

---

---------------

---

0.58

---

0.58

---------

95.4671.2912.3010.671.20

0.62

---------------

---

3.93

---

100.00



6

QuarterBarclays

Aggregate Style Index*Total

Return



12/05

03/0606/0609/0612/06200603/0706/0709/0712/07200703/0806/0809/0812/08200803/0906/0909/09

From Inception

0.59

-0.64-0.083.811.244.331.50

-0.522.853.006.962.17

-1.02-0.484.575.240.121.793.74

5.72

0.05

3.510.280.222.967.391.240.85

-2.50-4.16-4.73-5.202.83

-8.99-22.20-31.63

4.9021.4011.07

0.17

0.64

2.870.204.034.19

11.722.740.320.35

-1.162.24

-3.041.81

-9.48-17.63-26.39

5.0223.1914.82

5.88

1.16

2.050.232.743.338.592.760.491.02

-0.154.16

-2.192.22

-4.50-16.16-19.94

7.9811.989.75

5.00

0.02

-0.100.17

-0.60-0.80-1.33-0.380.200.180.420.420.60

-0.151.582.454.54

-0.36-4.58-3.56

-1.28

0.64

-0.90-0.53-0.73-0.07-2.220.200.060.690.751.700.670.873.452.347.506.42

-2.990.88

2.89

-0.14

0.190.400.040.000.630.20

-0.09-0.20-0.16-0.25-0.41-0.31-0.05-3.32-4.07-3.09-3.63-2.38

-2.49

0.51

-0.810.03

-1.29-0.86-3.130.020.170.671.011.930.850.414.981.476.452.97

-11.21-5.06

-0.88

Index* : ML High Yld II Tot Ret



7



Axcan Inter Hldgs InBerry Plastics Corp Centennial CommunicaIron Mtn Inc Sr Sb NJarden Corp Sr Nt 8%Jostens Ih Corp Sr SNrg Energy Inc Gtd SUS Oncology Inc Sr SUS Oncology Hldgs InAmc Entertainment InBall Corp Sr Nt 6.62Ball Corp Sr Nt 7.37Berry Pete Co Sr Nt Bio Rad Labs Inc Sr Cablevision Sys CorpCalpine Constr Fin CClean Harbors Inc SrCricket CommunicatioDel Monte Corp Sr SuDigicel Ltd Sr Nt 14Exco Resources Inc SEl Pollo Loco Inc SrElan Fin Plc / Elan Felcor Lodging Ltd PPurchase Turnover

9.255.26

10.137.758.007.638.50

10.755.688.756.627.38

10.258.008.628.007.627.758.62

12.007.25

11.758.759.00

3/01/15 2/15/15 6/15/13 1/15/15 5/01/1610/01/12 6/15/19 8/15/14 3/15/12 6/01/19 3/15/18 9/01/19 6/01/14 9/15/16 9/15/17 6/01/16 8/15/16 5/15/1612/15/12 4/01/14 1/15/1112/01/1210/15/16 6/01/11

35055040027010050037595013

250700550500650300975300

1,0252,6801,450

750700400

1,375

36950641227210350137599311

258676558534674310999307

1,0402,7541,617

743738395

1,380

***************

Altria Group Inc Nt Amkor Technology IncBoston Scientific CoBoston Scientific CoCelestica Inc Sr Nt Chemtura Corp Nt 6.8Cinemark Usa Inc Sr Clean Harbors Inc SrCorrections Corp AmeCytec Inds Inc Sr NtDelta Pass-Through TDirectv Hldgs Llc / Dow Chem Co Nt 8.55%Ford Motor Credit CoFreeport-McMoran CopHelix Energy SolutioHuntsman Llc Sr Sec Huntsman Llc Sr Nt 1Ineos Group Hldgs PlIngles Mkts Inc Sr NInterline Brands IncInternational Lease Interpublic Group CoIron Mtn Inc Sr Sb NSales Turnover

9.707.755.456.407.886.888.63

11.257.508.958.027.638.559.888.259.50

11.6311.508.508.888.135.636.258.63

11/10/18 5/15/13 6/15/14 6/15/16 7/01/11 6/01/16 6/15/19 7/15/12 5/01/11 7/01/17 2/10/24 5/15/16 5/15/19 8/10/11 4/01/15 1/15/1610/15/10 7/15/12 2/15/16 5/15/17 6/15/14 9/15/1011/15/14 4/01/13

85067525095067570017513285060036

125825800

1,200275

1,000350650175725250425500

97461923088468750817313284859826

134826740

1,212275

1,025354202179714230372499

****

*****

***

***

****



8



Ford Motor Cr Co Nt Ford Motor Credit CoFreedom Group Inc SrHca Inc Nt 8.7Harrahs Oper Inc Sr Healthnet Inc Sr Nt Huntsman Intl Llc SrInterpublic Group CoIron Mtn Inc Del Sr Landrys Restaurants Metropcs Wireless InMidwest Generation Omnicare Inc Sr Sb NPlains Expl& Prodtn Qwest Corp Sr Nt 144Reliance IntermediatRite Aid Corp Sr Nt Sba TelecommunicatioSprint Cap Corp Nt Supervalu Inc Sr Nt Temple Inland Inc CrToys R US Ppty Co I United Rentals NorthWendys / Arbys RestaPurchase Turnover

3.268.70

10.258.75

11.256.385.50

10.008.38

14.009.258.566.758.628.389.509.758.007.627.506.88

10.7510.8810.00

1/13/1210/01/14 8/01/15 9/01/10 6/01/17 6/01/17 6/30/16 7/15/17 8/15/21 8/15/1111/01/14 1/02/1612/15/1310/15/19 5/01/1612/15/19 6/12/16 8/15/16 1/30/1111/15/14 1/15/18 7/15/17 6/15/16 7/15/16

9501,200

5501,0001,3501,1501,175

625325525

1,350230350550500850350725

1,200300

1,3501,300

6251,325

8551,175

5831,0151,3641,012

999675335527

1,380233339557518839378741

1,227297

1,3461,398

6691,408

************************

Massey Energy Co Sr Mosaic Co Sr Nt 144aPride Intl Inc Del SQwest Cap Fdg Inc GRemington Arms Inc NRent A Ctr Inc New SSealed Air Corp New Shingle Springs TribSprint Nextel Corp NSuburban Propane ParTeco Energy Inc Nt FTrimas Corp Sr Sb NtUS Oncology Inc Sr NWesco Distr Inc Sr SCash Equivalents

Sales Turnover

6.887.638.507.00

10.507.507.889.381.016.885.009.889.007.505.40

12/15/1312/01/16 6/15/19 8/03/09 2/01/11 5/01/10 6/15/17 6/15/15 6/28/1012/15/13 5/01/10 6/15/12 8/15/1210/15/1710/01/09

175550250750750850350450

1,200450

1,000650

1,348700

4,497

169558247750756850347270

1,131416975559

1,378518

4,497

*************



9

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Asset BackedMidwest Generation Mirant Mid-Atlantic,Delta Pass-Through T FinanceInternational Lease Elan Fin Plc / Elan Ford Motor Cr Co Nt US Oncology Hldgs InAmerican Real EstateDeluxe Corp Sr Nt 5%Intelsat Subsidiary American Real EstateLeucadia Natl Corp SElan Fin Plc / Elan Health Care Ppty InvCentene Corp Del Sr Ford Motor Credit CoDeluxe Corp Nt 5.125Health Care Ppty In Health Care Ppty InvCrum & Forster Hldgs

8.569.138.02

5.637.793.265.688.135.008.507.137.754.495.657.258.705.136.006.307.75

1/02/16 6/30/17 2/10/24

9/15/1011/15/11 1/13/12 3/15/12 6/01/1212/15/12 1/15/13 2/15/13 8/15/1312/01/1312/15/13 4/01/1410/01/1410/01/14 3/01/15 9/15/16 5/01/17

0

1,342827

250850

0335750500500

1,025265400

1,000500

0500650

1,600750

230

1,342791

0

850950348750500500

1,025265400

1,000500

1,200500650

1,600750

Ba1Ba2Ba2

Baa2B2

Caa1Caa1Ba3Ba2B3

Ba3B1B2

Baa3Ba3

Caa1Ba2

Baa3Baa3Ba1

BB-BB

BBB-

BBB+B

CCC+CCC+BBB-

BB-B+

BBB-BB+

BBBBBB-

CCC+BB-

BBBBBBBB+

1/02/12 6/30/15 8/10/18

9/15/1011/15/11 1/13/12 3/15/12 6/01/1112/15/12 1/15/13 2/15/13 8/15/1312/01/1312/15/13 4/01/1410/01/1410/01/14 3/01/15 9/15/16 5/01/16

1.924.22

-1.57

1.090.12

-0.122.181.672.832.782.693.26

-0.033.613.623.954.144.515.474.97

7.798.88

14.58

12.979.208.19

11.939.108.158.058.647.597.056.477.929.227.966.616.999.61

233

1,355559

2,147 0

829855303743456506987266364970488

1,175443632

1,540690

0.171.000.411.59

0.000.610.630.220.550.340.370.730.200.270.720.360.870.330.471.140.51

NA

4.0912.67

5.2713.68

NA4.979.98

13.697.718.647.57

18.128.108.26NA

17.3811.9112.788.31



10

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Finance (cont.)Healthnet Inc Sr Nt ForeignDigicel Ltd Sr Nt 14 IndustrialQwest Cap Fdg Inc GFord Motor Credit CoGoodyear Tire & RubrRent A Ctr Inc New SHca Inc Nt 8.7Huntsman Llc Sr Sec Turning Stone CasinoExco Resources Inc SRemington Arms Inc NCsc Hldgs Inc Sr Nt Corrections Corp AmeFelcor Lodging Ltd PCelestica Inc Sr Nt Ford Motor Credit CoSheridan Group Inc SLandrys Restaurants

6.38

12.00

7.007.385.017.508.75

11.639.137.25

10.507.637.509.007.889.88

10.2514.00

6/01/17

4/01/14

8/03/0910/28/0912/01/09 5/01/10 9/01/1010/15/1012/15/10 1/15/11 2/01/11 4/01/11 5/01/11 6/01/11 7/01/11 8/10/11 8/15/11 8/15/11

0 0

750650

1,300850

01,000

5000

7501,100

8500

1,200800475

0

1,150

1,450 0

6501,300

01,000

0500750

01,100

01,375

5250

475525

Ba3

B1

B1Caa1

B1B2

Caa1Ba1B1

Caa1B3

Ba3Ba2

Caa1B3

Caa1B2B3

BB-

NR

B+CCC+

B+B+B-B+B+B-

CCC+BBBBB-

BB-CCC+

BB

6/01/17

4/01/14

NA10/28/0912/01/09 5/01/10 9/01/1010/15/1012/15/10 1/15/11 2/01/11 4/01/11 5/01/11 6/01/11 7/01/11 8/10/11 8/15/11 8/15/11

5.64

3.30

0.090.080.160.790.871.161.091.191.421.361.671.481.591.751.551.58

8.54

8.85

6.906.935.747.487.039.50

10.007.969.985.007.648.746.79

14.0620.9713.74

1,012

12,258

1,6171,617

0

6501,298

01,015

0495743

01,141

01,380

5340

399527

0.759.07

1.201.20

0.000.480.960.000.750.000.370.550.000.840.001.020.400.000.300.39

NA

NA

NA2.762.16NANANA

8.64NANA

6.21NANA

3.7412.2844.32

NA



11

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Communications & PwrQwest Corp Nt 8.875Kcs Energy Inc Sr NtPrestige Brands In STrimas Corp Sr Sb NtTelcordia TechnologiHuntsman Llc Sr Nt 1Clean Harbors Inc SrUS Oncology Inc Sr N3815688 Cda Inc/CanwJostens Ih Corp Sr SSteel Dynamics Inc SEl Pollo Loco Inc SrAlbritton CommunicatDel Monte Corp Sr SuDavita Inc Sr Nt 6.6Directv Hldgs Llc / Level 3 Fing Inc Sr Denbury Res Inc Del Iron Mtn Inc Sr Sb NPhillips Van Heusen Amkor Technology Inc

8.008.887.139.259.884.26

11.5011.259.008.007.637.38

11.757.758.636.638.38

12.257.508.638.137.75

2/01/12 3/15/12 4/01/12 4/15/12 6/15/12 7/15/12 7/15/12 7/15/12 8/15/12 9/15/1210/01/1211/01/1212/01/1212/15/1212/15/12 3/15/13 3/15/13 3/15/13 4/01/13 4/01/13 5/01/13 5/15/13

775725900500650

1,700350132

1,3481,250

850625

01,000

01,290

550700

1,000500610675

775725900500

01,700

000

1,2501,350

625700

1,0002,6801,290

550700

1,0000

6100

B3

Ba1B3B3

Caa1B2

Ba3B1

Ba3CaB1

Ba2B2

Caa1B1B1

Ba2Caa1

B1B2

Ba3B2

B-

BBB-B

B-B-B

B-BB

BD

BB-BB+

BB-

BB-B+

BBB-CCC

BBB+

BB+B+

8/01/10 3/15/1210/01/11 4/15/12 6/15/12 7/15/12 7/15/12 1/15/11 8/15/12 9/15/1210/01/1211/01/12 6/01/1212/15/1212/15/09 9/15/11 3/15/13 3/15/1210/01/11 4/01/1311/01/10 5/15/13

1.282.191.612.142.40

-0.212.391.642.602.432.542.642.282.680.212.302.962.271.873.081.273.18

9.716.538.068.36

15.9910.1011.0013.238.16

17.637.587.01

10.739.979.018.267.46

12.918.608.707.69

10.38

771763891510

01,466

000

9811,352

631738940

2,7541,277

565707

1,0000

6210

0.570.560.660.380.001.090.000.000.000.731.000.470.550.702.040.950.420.520.740.000.460.00

5.486.696.955.397.84

12.68NANANA

172.962.317.99NA

23.42NA

6.254.099.586.70NA

5.6511.13



12

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Omnicare Inc Sr Sb NEdison Mission EnergEnergy Xxi Gulf CoasChesapeake Energy CoPhibro Animal HealthGencorp Inc Sr Sub NSungard Data Sys IncBlyth Inc Sr Nt 5.5%Columbus McKinnon CoMgm Mirage Sr Nt 144Cco Hldgs Llc / Cco Angiotech PharmaceutAccellent Inc Sr Sb Network CommunicatioElan Fin Plc / Elan Regency Energy PartnSusser Hldgs L L C SMassey Energy Co Sr Suburban Propane ParSgs International InOmnicare Inc Sr Sb NSungard Data Sys Inc

6.137.50

10.007.63

10.009.509.135.508.88

13.008.754.11

10.5010.758.888.38

10.636.886.88

12.006.754.88

6/01/13 6/15/13 6/15/13 7/15/13 8/01/13 8/15/13 8/15/1311/01/1311/01/1311/15/1311/15/1312/01/1312/01/1312/01/1312/01/1312/15/1312/15/1312/15/1312/15/1312/15/1312/15/13 1/15/14

350750600

1,125350630700900750

1,250525

1,900850600

1,050817500

1,000450650

0500

350750600

1,125350630700900750

1,250525

1,900850600

1,050817500825

0650350500

B1B2Ca

Ba3B2B1

Caa1B1B1B1B2

Caa2Caa2Caa1

B2B1B3B2B1B3B1B3

B+

BC

BBB

CCC-B

B+B+

BD

CCCCC+CCC-

BB

B+BB-B+B-B+BB

6/01/13 6/15/13 6/15/13 7/15/13 8/01/13 8/15/13 8/15/1311/01/1311/01/1311/15/1311/15/0912/01/1312/01/1312/01/1312/01/1312/15/1312/15/11 6/15/1312/15/1312/15/1312/15/13 1/15/14

3.153.072.773.182.982.963.173.333.253.100.09

-0.203.151.733.333.412.033.133.623.003.513.71

7.309.53

17.117.81

11.6416.708.81

12.738.588.73

-8.678.66

11.890.008.658.08

10.038.179.03

15.837.667.65

337703486

1,118333504707698758

1,431533

1,606812169

1,058825516796

0575339450

0.250.520.360.830.250.370.520.520.561.060.391.190.600.120.780.610.380.590.000.430.250.33

7.476.87

41.576.63

10.8311.359.321.793.117.579.17

13.3015.8254.2112.566.865.677.368.77

39.75NA

3.09



13

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Videotron Ltee Sr NtSkilled Healthcare GCorrections Corp AmeTyson Foods Inc Sr NAmc Entmt Inc Sr Sb Anixter Inc Gtd Sr NCsc Hldgs Inc Sr Nt Warner Music Group SCharter CommunicatioBerry Pete Co Sr Nt Sealy Mattress Co SrWca Waste Corp Sr NtInterline Brands IncBoston Scientific CoKabel Deutschland GmPhibro Animal HealthUS Oncology Inc Sr SReichhold Inds Inc SRainbow Natl Svcs LlTravelport Llc / TraEchostar Dbs Corp SrApria Healthcare Gro

6.88

11.006.75

10.508.00

10.008.507.38

10.3810.258.259.258.135.45

10.6313.0010.759.00

10.389.886.63

11.25

1/15/14 1/15/14 1/31/14 3/01/14 3/01/14 3/15/14 4/15/14 4/15/14 4/30/14 6/01/14 6/15/14 6/15/14 6/15/14 6/15/14 7/01/14 8/01/14 8/15/14 8/15/14 9/01/14 9/01/1410/01/1411/01/14

725510250500750675250875

1,6500

600500725250

1,000350250750500

1,0001,350

500

725510250500750675250875

1,650500600500

00

1,000350

1,200750500

1,0001,350

500

Ba2

Caa1Ba2Ba3

Caa1Ba2Ba3B1B1B2

Caa1B3B3

Ba1B2

Caa1B3

Caa2B1B3

Ba3Ba2

BB-

B-BBBB

CCC+BB+

BBBDB

CCC+B-B+

BB+B

CCC+CCC+CCC+

BBCCC-

BB-BB+

7/15/12 1/15/14 7/31/12 3/01/14 9/01/13 3/15/14 4/15/14 4/15/1410/30/11 6/01/14 6/15/14 6/15/14 6/15/14 6/15/14 7/01/14 8/01/14 8/15/14 8/15/14 3/01/10 9/01/1410/01/1411/01/14

2.633.302.923.543.203.553.603.631.923.573.673.603.984.213.613.303.703.640.253.754.033.72

8.309.977.936.969.458.497.198.529.918.46

10.2910.418.507.419.23

15.079.57

13.919.66

10.747.299.36

718528247566724712263838

1,683534555479

00

1,053326

1,254623526968

1,313538

0.530.390.180.420.540.530.190.621.250.400.410.350.000.000.780.240.930.460.390.720.970.40

8.913.695.886.82

15.578.577.55

15.349.27NA

15.008.091.58

10.464.66

11.968.30

143.644.09

49.247.24

13.76



14

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Interpublic Group CoSupervalu Inc Sr Nt Spx Corp Sr Nt 7.625Inergy L P & Inergy Bio Rad Labs Inc Sr Iron Mtn Inc Sr Sb NKnowledge Learning CAramark Corp Sr Nt FIesy Repository GmbhBerry Plastics Corp Holly Energy PartnerRite Aid Corp Sr Nt Axcan Inter Hldgs InFreeport-McMoran CopAmerigas Partners L Csc Hldgs Inc Sr Nt Shingle Springs TribLeucadia Natl Corp SOmnicare Inc Sr Sb NHelix Energy SolutioNrg Energy Inc Sr NtAmc Entmt Inc Sr Sb

6.257.507.636.886.137.757.753.98

10.385.266.258.639.258.257.258.509.388.136.889.507.38

11.00

11/15/1411/15/1412/15/1412/15/1412/15/14 1/15/15 2/01/15 2/01/15 2/15/15 2/15/15 3/01/15 3/01/15 3/01/15 4/01/15 5/20/15 6/15/15 6/15/15 9/15/1512/15/15 1/15/16 2/01/16 2/01/16

425

0650375650400700

1,000750900650350750

1,2001,000

500450600725700250300

0

300650375650670700

1,000750

1,450650350

1,1000

1,000500

0600725425250300

Ba3Ba3Ba2B1

Ba3B2B2B3B2B1B1

Caa3Ba2Ba2Ba3Ba3

Caa1B1B1B3B1

Caa1

B+B+BBB+

BB+B+

BB

B+B+B+

CCCBB+

BBB-BB-BB

BBB+

B+B+

BB-CCC+

11/15/14 5/15/1312/15/14 6/15/1412/15/14 1/15/15 2/01/15 2/01/15 6/30/10 2/15/15 3/01/15 3/01/15 3/01/15 4/01/15 5/20/1212/15/12 6/15/15 9/15/1512/15/15 1/15/14 8/01/14 2/01/12

4.333.184.143.784.294.204.20

-0.320.74

-0.214.423.994.204.412.703.063.804.634.823.574.152.70

9.258.007.448.166.767.578.587.043.547.138.22

13.597.988.038.276.77

21.637.707.69

10.148.809.36

0

297655358632675676868788

1,334595285

1,1610

975525

0612696425242320

0.000.220.480.270.470.500.500.640.580.990.440.210.860.000.720.390.000.450.520.310.180.24

9.95NA

6.406.857.986.995.878.016.035.767.92

25.657.307.395.398.50

23.9514.987.70

12.224.21

12.95



15

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Ineos Group Hldgs PlPlains Expl& Prodtn Inergy L P & Inergy Denbury Res Inc Sr SQuebecor Media Inc SService Corp Intl SrNewfield Expl Co Sr Jarden Corp Sr Nt 8%Supervalu Inc Sr Nt Directv Hldgs Llc / Owens-Brockway GlassChemtura Corp Nt 6.8Rite Aid Corp Sr Nt Wmg Acquisition CorpBoston Scientific CoUnited Rentals NorthHuntsman Intl Llc SrH & E Equipment ServWendys / Arbys RestaClean Harbors Inc SrSilgan Holdings Inc Bio Rad Labs Inc Sr

8.50

10.008.259.757.756.756.638.008.007.637.386.889.759.506.40

10.885.508.38

10.007.637.258.00

2/15/16 3/01/16 3/01/16 3/01/16 3/15/16 4/01/16 4/15/16 5/01/16 5/01/16 5/15/16 5/15/16 6/01/16 6/12/16 6/15/16 6/15/16 6/15/16 6/30/16 7/15/16 7/15/16 8/15/16 8/15/16 9/15/16

650575927250

1,281750350650825425575700

0350950

00

87500

7000

0

575927250

1,281750350750825300575

0350350

0625

1,175875

1,325300700650

CaB1B1B1B2B1

Ba3B2

Ba3Ba2Ba3

Caa3B3

Ba2Ba1B2B1B3B2

Ba2Ba3Ba3

CCBBB+BB

BBB-BB-B+B+

BBB-BB

DB+BB

BB+B

B-BB-B+

BB-BB+BB+

2/15/16 3/01/16 9/01/13 9/01/14 3/15/16 4/01/16 4/15/16 5/01/16 5/01/16 5/15/16 5/15/16 6/01/16 6/12/16 6/15/16 6/15/16 6/15/16 6/30/16 7/15/15 7/15/16 8/15/16 8/15/16 9/15/16

2.724.693.674.014.864.975.044.894.905.055.104.954.894.775.414.605.284.624.785.225.285.26

0.008.418.398.587.957.147.017.517.326.316.94

13.028.188.407.729.448.46

10.518.757.187.067.30

0

620932266

1,268735343769854321588

0378369

0669999801

1,408307707674

0.000.460.690.200.940.540.250.570.630.240.440.000.280.270.000.490.740.591.040.230.520.50

60.167.337.705.80

11.409.87

10.449.458.79

12.017.33

47.22NA

8.4410.74

NANA

16.66NANA

7.12NA



16

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)Hca Inc Sr Nt 9.25%1Mosaic Co Sr Nt 144aNewmarket Corp Sr NtGreif Inc Sr Nt 6.75Readers Digest Assn Rite Aid Corp Sr Nt Leucadia Natl Corp SJarden Corp Sr Sb NtIngles Mkts Inc Sr NCorrections Corp AmeHarrahs Oper Inc Sr Sealed Air Corp New Cytec Inds Inc Sr NtInterpublic Group CoToys R US Ppty Co I Cablevision Sys CorpWesco Distr Inc Sr STemple Inland Inc CrBall Corp Sr Nt 6.62Videotron Ltee Sr NtNewfield Expl Co Sr Plains Expl& Prodtn

9.257.637.136.759.007.507.137.508.887.75

11.257.888.95

10.0010.758.637.506.886.639.137.137.63

11/15/1612/01/1612/15/16 2/01/17 2/15/17 3/01/17 3/15/17 5/01/17 5/15/17 6/01/17 6/01/17 6/15/17 7/01/17 7/15/17 7/15/17 9/15/1710/15/17 1/15/18 3/15/18 4/15/18 5/15/18 6/01/18

700550700650400800

1,100350650850

0350600

000

70000

1,050750350

700

0700650400800

1,100350475850

1,35000

6251,300

3000

1,350700

1,050750350

B2

Baa3Ba3Ba2

CCaa2

B1B3B1

Ba2Caa1Baa3Baa3Ba3B3B1B1

Ba1Ba1Ba2Ba3B1

BB-

BBB-BB-BB

DB-

BB+B-

BB-BB

BBB+

BBB-B+B+B+

BBBB-BB+BB-BB-BB

11/15/1612/01/16 6/15/15 2/01/17 2/15/17 3/01/17 3/15/15 5/01/17 5/15/1712/01/14 6/01/17 6/15/17 7/01/17 7/15/17 7/15/17 9/15/1710/15/17 1/15/18 3/15/18 6/15/14 5/15/18 6/01/18

4.985.534.625.570.095.364.725.455.274.554.985.755.575.265.145.665.426.096.274.366.136.01

8.607.388.607.280.009.818.267.998.427.30

11.068.038.978.569.378.06

12.656.927.187.607.167.95

724

0669631

6704

1,056340487878

1,36400

6751,398

3100

1,346676

1,137748343

0.540.000.490.470.000.520.780.250.360.651.010.000.000.501.030.230.001.000.500.840.550.25

7.057.128.117.58

-16.1114.8820.3713.316.346.81NA

8.4013.12

NANANA

20.13NANA

8.7911.1411.34



17

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

Industrial (cont.)B E Aerospace Sr Nt Linn Energy Llc Sr NAltria Group Inc Nt Dow Chem Co Nt 8.55%Amc Entertainment InCinemark Usa Inc Sr Pride Intl Inc Del SBall Corp Sr Nt 7.37Plains Expl& Prodtn Reliance IntermediatPhillips Van Heusen MiscellaneousCash Equivalents Cognis Gmbh Sr Nt FlFreedom Group Inc SrElan Fin Plc / Elan TransportationAmerican Airlines PaIron Mtn Inc Del Sr

8.509.889.708.558.758.638.507.388.639.507.75

5.402.30

10.258.75

7.328.38

7/01/18 7/01/1811/10/18 5/15/19 6/01/19 6/15/19 6/15/19 9/01/1910/15/1912/15/1911/15/23

10/01/09 9/15/13 8/01/1510/15/16

4/15/11 8/15/21

1,100

500850825

0175250

000

618

8,052925

00

5000

1,100

50000

25000

550550850618

3,556925550400

500325

Ba3B3

Baa1Baa3

B1B3

Ba1Ba1B1

Ba2Baa3

AaaNRB1B2

Ba3B2

BBB-

BBBBBB-

B-B-

BBB-BB+

BBBB-

BBB-

AAAB-B+

B

B+B+

7/01/18 7/01/1811/10/18 5/15/19 6/01/19 6/15/19 6/15/19 9/01/1910/15/1912/15/1911/15/23

10/01/09 9/15/13 8/01/1510/15/16

4/15/11 8/15/21

5.945.596.166.406.256.456.456.836.536.207.40

0.00-0.154.295.12

1.487.27

8.099.617.498.528.258.828.697.168.439.699.96

3.257.028.908.99

7.507.98

1,128

50800

25800

558557839516

96,320

3,556777583395

5,311

499335834

0.830.380.000.000.190.000.000.410.410.620.38

71.29

2.630.580.430.293.93

0.370.250.62

11.0317.1810.4814.37

NA6.89

13.57NANANA

10.52

NA9.85NANA

4.21NA



18

Name

Coupon

Maturity

Quantity 6/30/09 9/30/09

QualityMoody S&P


$(000)

% Port

Buy/HoldReturn

UtilitiesTeco Energy Inc Nt FSprint Nextel Corp NSprint Cap Corp Nt Orbimage Hldgs Inc SCentennial CommunctnCentennial CommunicaCentennial CommunicaFerrellgas L P / FerIntelsat CorporationMetropcs Wireless InEchostar Dbs Corp SrQwest Corp Sr Nt 144Cricket CommunicatioCalpine Constr Fin CIntelsat Jackson HldSba TelecommunicatioCopano Energy L L C Nrg Energy Inc Gtd S Total Portfolio

5.001.017.63

10.6010.0010.138.136.759.259.257.758.387.758.009.508.007.758.50

5/01/10 6/28/10 1/30/11 7/01/12 1/01/13 6/15/13 2/01/14 5/01/14 8/15/1411/01/14 5/31/15 5/01/16 5/15/16 6/01/16 6/15/16 8/15/16 6/01/18 6/15/19

1,0001,200

01,200

550400

1,050500375

01,125

000

1,7500

1,1001,700

00

1,2001,200

550800

1,050500375

1,3501,125

5001,025

9751,750

7251,1002,075

Baa3Ba2Ba2B1

Caa1B2B2

Ba3B3B3

Ba3Ba1Ba2B1B3

Ba2B1B1

BBB-

BBBB

BB-CCC+

BB

B+BB-

BBB-

BBB-B+

BB-BB-BB-B+

BB-

5/01/10 6/28/10 1/30/11 1/01/1010/01/11 6/15/10 2/01/11 5/01/13 8/15/1411/01/09 5/31/15 5/01/16 5/15/16 6/01/16 6/15/16 8/15/16 6/01/18 6/15/19

0.060.201.240.101.671.081.993.123.820.094.414.824.984.954.795.145.916.26

8.237.075.74

-41.028.848.027.928.318.61

-15.407.317.697.467.518.507.578.588.48

00

1,2271,284

573824

1,066476384

1,3801,148

5181,040

9991,838

7411,0452,078

16,620

0.000.000.910.950.420.610.790.350.281.020.850.380.770.741.360.550.771.54

12.30

3.863.29NA

7.791.092.361.28

11.943.54NA

9.14NANANA

6.87NA

7.435.57

12.14

VVTacoma Employes’ Retirement SystemFund Return TableReal Estate CompositeQuarter Ended 9/30/09

1


9/30/99Inception

DateInception

ReturnAdelante Capital Mgmnt Wilshire REIT Index Wilshire REIT Index + 1%

Real Estate Composite Wilshire REIT Index

Indices Wilshire REIT Index NCREIF Property Index Wilshire Real Est. Secs

30.5935.4235.67

30.5935.42

35.42-3.3235.93

72.4478.2978.79

72.4478.29

78.29-8.3579.30

16.3017.8118.56

16.3017.81

17.81-15.0718.60

-31.53-29.26-28.26

-31.53-29.26

-29.26-22.11-29.31

-16.74-13.70-12.70

-16.74-13.70

-13.70-1.29

-13.83

-0.471.172.17

-0.471.17

1.176.161.11

9.029.73

10.73

8.999.73

9.737.839.56

12/31/9712/31/9712/31/97

3/31/88 3/31/88

Since 3/31/88 3/31/88 3/31/88

6.306.277.27

3.668.04

8.046.886.96


REIT Equity PortfoliosPeriods Ended 9/30/09

2

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

1 2

1 2

1 2

1 21 2

1 2

1 2

1 2

Med75th95th

25th

5th

Rat

e of

Ret

urn

Adelante Capital Mgmnt1 Wilshire REIT Index 2 Wilshire REIT Index + 1% MedianNumber of Funds


30.59 (85)35.42 (19)35.67 (19)

32.54

35

72.44 (62)78.29 (25)78.79 (22)

74.59

35

16.30 (77)17.81 (74)18.56 (59)

19.20

35

-31.53 (97)-29.26 (77)-28.26 (74)

-26.01

35

-26.10 (97)-21.30 (85)-20.30 (73)

-18.45

34

-16.74 (100)-13.70 (88)-12.70 (76)

-11.04

34

-0.47 (100)1.17 (85)2.17 (70)

2.98

34

9.02 (100)9.73 (92)

10.73 (62)

11.0827


Adelante Capital MgmntQuarter Ended 9/30/09

1

Val

ue

9/98 9/99 9/00 9/01 9/02 9/03 9/04 9/05 9/06 9/07 9/08 9/090.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

LegendReturn


ValueTotalWilshire REIT Index Wilshire REIT Index + 1%

-16.74-13.70-12.70

6.306.277.27

2.052.042.30

VVTacoma Employes’ Retirement SystemREIT Structural Characteristics


2

Quarter $(000)

#

Stocks

%

Cash

%

Equity

%

Other

%

REIT

Property Type Sectors %

Office

Indus-

trial Storage

Regnl

Retail

Local

Retail

Factory

Outlet Apts

Mfg.

Housing

Health

Care Hotel

Diver-

sified Other

03/31/9806/30/9809/30/9812/31/9803/31/9906/30/9909/30/9912/31/9903/31/0006/30/0009/30/0012/31/0003/31/0106/30/0109/30/0112/31/0103/31/0206/30/0209/30/0212/31/0203/31/0306/30/03*Index

34,22743,54248,80359,52866,25281,99276,00790,52294,586

105,636116,733121,186118,390130,031130,767135,504139,129114,602105,45994,77596,357

107,090193,588

3232283235363637353129302929322828293030283281

43362304343674264323720

09797949897

100969796979493969894969798989398

100

0

0000000000000000000000

0939697979796989898

100100100979797979797

10096

100100

0.019.424.424.024.227.429.829.430.131.633.834.131.933.034.832.929.925.123.523.222.718.712.9

0.00.00.00.00.00.50.50.10.00.00.00.40.82.12.41.91.92.23.13.14.74.39.0

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.05.2

0.013.311.313.714.613.112.411.911.813.514.810.29.69.39.19.1

11.713.414.014.218.018.013.5

0.01.11.91.25.05.75.64.44.73.82.72.61.41.32.42.83.24.04.24.55.06.56.8

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

0.028.722.529.929.526.526.828.428.728.224.628.028.429.730.734.228.227.126.927.125.023.713.4

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.2

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.05.1

0.011.6

9.05.24.44.13.02.32.31.92.12.32.01.62.90.00.00.00.00.00.00.06.4

0.023.428.121.720.321.120.322.221.520.621.922.425.923.017.619.119.321.819.318.818.617.1

7.8

0.02.42.74.31.91.61.71.31.00.40.00.00.00.00.00.05.86.49.09.06.0

11.819.7

Index : Wilshire REIT Index



3

Quarter $(000)

#

Stocks

%

Cash

%

Equity

%

Other

%

REIT


Office

Indus-

trial Storage

Regnl

Retail

Local

Retail

Factory

Outlet Apts

Mfg.

Housing

Health

Care Hotel

Diver-

sified Other

09/30/0312/31/0303/31/0406/30/0409/30/0412/31/0403/31/0506/30/0509/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/08*Index

117,524121,467137,170131,462141,525137,458125,604147,768134,185139,476162,391151,334159,683175,569182,388159,261162,285139,575141,734134,035130,31776,813

193,588

3128272627272827282927303028262625252833333781

34239224334303314342730

979698979198989697979697

100979799969796989397

100

00000000000000000000000

94100100100100100999997

10010010010010010088

100100100100100100100

17.016.413.514.417.119.320.219.720.517.919.113.314.114.614.315.812.613.513.714.513.514.712.9

4.64.24.14.04.04.14.12.35.36.55.45.65.54.84.24.6

13.413.812.913.613.310.29.0

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.04.05.2

20.120.322.920.819.419.218.820.720.019.217.617.517.920.922.923.821.622.123.723.623.215.413.5

7.68.08.48.18.79.09.29.3

10.79.88.08.56.92.33.03.43.63.94.65.25.57.06.8

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

27.627.625.227.526.327.224.926.727.026.226.928.627.424.822.625.220.420.419.918.922.121.513.4

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.2

0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.03.25.1

0.00.00.00.00.00.00.00.00.01.32.30.81.32.93.25.15.14.83.83.22.62.36.4

16.715.916.315.514.513.513.613.814.714.914.115.215.716.414.716.27.88.37.67.17.17.87.8

6.37.59.59.6

10.07.69.27.51.84.16.6

10.611.313.315.25.9

15.613.213.913.912.614.019.7




4

Quarter $(000)

#

Stocks

%

Cash

%

Equity

%

Other

%

REIT


Office

Indus-

trial Storage

Regnl

Retail

Local

Retail

Factory

Outlet Apts

Mfg.

Housing

Health

Care Hotel

Diver-

sified Other

03/31/0906/30/0909/30/09

*Index

39,29651,94767,909

193,588

363639

81

134

0

999796

100

000

0

100100100

100

12.113.114.0

12.9

9.49.6

10.3

9.0

6.77.05.9

5.2

13.415.315.3

13.5

7.16.55.3

6.8

0.00.00.0

0.0

21.518.317.6

13.4

0.00.00.0

0.2

4.24.07.1

5.1

1.41.71.7

6.4

6.46.85.1

7.8

17.917.817.6

19.7


VVTacoma Employes’ Retirement SystemREIT Investment Characteristics


5

QuarterGrowth

5 Yrs Earn 5 Yrs DivAverage $


P/E P/B YLD ROERisk

Beta Debt/Eqt R Square09/30/9912/31/9903/31/0006/30/0009/30/0012/31/0003/31/0106/30/0109/30/0112/31/0103/31/0206/30/0209/30/0212/31/0203/31/0306/30/0309/30/0312/31/0303/31/0406/30/0409/30/0412/31/04Wilshire REIT Index

-2.3-1.3-1.3-0.2-2.3-0.70.2

-0.1-1.8-0.9-1.0-0.2-0.00.22.51.80.40.35.04.75.44.90.0

-0.50.40.60.80.81.11.71.21.01.61.73.43.23.13.33.43.03.31.51.41.51.36.6

1,8311,9852,0672,5152,9013,1452,9083,3023,9513,9074,3383,8543,5223,4183,4023,5093,7713,9074,3474,0614,1315,1596,453

10.610.711.011.99.8

10.09.6

10.210.010.010.511.210.19.79.7

11.411.913.314.613.814.516.544.1

2.41.81.82.02.11.82.12.32.02.42.22.82.72.73.12.42.72.92.82.62.73.11.5

7.57.57.46.86.46.56.86.36.66.66.36.16.87.06.76.05.55.34.85.14.84.24.4

8.03.82.11.2

-1.8-2.8-2.9-4.2-3.7-9.0-8.8-4.0-3.0-2.51.40.2

-0.8-1.110.19.9

10.210.18.3

0.530.250.240.230.150.220.240.200.290.220.240.280.320.250.260.250.170.190.210.250.250.271.47

0.400.390.360.320.310.310.270.300.350.200.190.190.200.190.170.180.150.150.250.260.280.262.25

0.170.170.190.160.060.060.070.060.060.060.070.060.070.050.050.120.030.040.040.030.020.030.54


VVTacoma Employes’ Retirement SystemREIT Investment Characteristics


6

QuarterGrowth

5 Yrs Earn 5 Yrs DivAverage $


P/E P/B YLD ROERisk

Beta Debt/Eqt R Square03/31/0506/30/0509/30/0512/31/0503/31/0606/30/0609/30/0612/31/0603/31/0706/30/0709/30/0712/31/0703/31/0806/30/0809/30/0812/31/0803/31/0906/30/0909/30/09

Wilshire REIT Index

4.64.74.44.76.23.31.7

-1.85.41.92.52.24.46.15.75.01.21.41.0

0.0

1.41.51.71.82.11.80.65.10.57.77.27.38.38.07.26.95.85.45.2

6.6

4,6895,5586,2276,5567,6107,7728,628

10,18810,9189,785

10,1848,3458,5067,8847,7194,7953,4415,1186,528

6,453

14.416.316.917.313.519.521.122.085.657.451.941.448.351.550.137.628.933.159.3

44.1

2.93.22.83.03.23.23.64.23.53.53.52.92.62.52.41.40.91.41.8

1.5

4.74.03.93.73.33.33.02.82.83.13.13.94.04.34.76.09.16.04.5

4.4

9.89.66.76.86.97.27.27.49.2

11.311.110.811.012.312.312.611.710.08.9

8.3

0.320.310.390.400.390.480.500.500.540.620.661.111.031.171.111.491.461.531.52

1.47

0.250.340.550.350.360.430.301.200.471.181.191.201.241.201.221.171.201.091.14

2.25

0.030.030.070.090.110.140.160.170.190.180.140.350.320.420.390.540.520.570.59

0.54


VVTacoma Employes’ Retirement SystemREIT Return Analysis


7

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total03/9806/9809/9812/98199803/9906/9909/9912/99199903/0006/0009/0012/00200003/0106/0109/0112/01200103/0206/0209/0212/02

-1.00-4.17

-10.63-2.11

-17.01-4.1010.56-8.270.16

-2.583.00

11.209.354.63

31.04-1.0310.90-2.404.88

12.358.374.61

-9.080.50

0.07-2.60

-10.220.64

-11.93-5.8612.51-7.300.95

-0.894.49

11.4410.273.60

33.03-2.519.600.353.41

10.876.444.83

-7.981.10

0.07-2.60

-10.220.64

-11.93-5.8612.51-7.300.95

-0.894.49

11.4410.273.60

33.03-2.519.600.353.41

10.876.444.83

-7.981.10

0.000.000.000.000.000.000.00

-0.000.000.000.00

-0.00-0.000.000.000.000.000.000.000.00

-0.00-0.01-0.00-0.00

NANA

0.450.37NA

0.650.070.510.641.930.460.630.960.032.59

-1.97-0.181.56

-1.55-2.36-1.69-0.12-0.13-0.13

NANA

0.711.16NA

-2.782.970.530.480.751.430.121.10

-0.073.210.45

-0.611.610.562.360.250.270.480.35

NANA

-0.751.22NA

0.37-1.10-0.06-0.34-0.98-0.40-0.51-1.15-0.99-3.810.03

-0.52-0.42-0.48-1.48-0.490.070.750.38

1.071.570.412.755.08

-1.761.940.970.781.701.490.240.92

-1.031.98

-1.49-1.302.75

-1.47-1.48-1.930.221.100.60

Index* : Wilshire REIT Index



8

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total200203/0306/0309/0312/03200303/0406/0409/0412/04200403/0506/0509/0512/05200503/0606/0609/0612/06200603/0706/0709/07

3.581.26

12.109.939.13

36.1812.09-5.418.28

15.9933.16-7.3015.223.942.52

13.8215.79-1.129.118.85

35.973.74

-9.361.42

3.801.67

11.029.629.40

35.3512.79-4.327.54

16.6935.42-8.7517.444.323.76

16.0016.22-0.708.319.72

37.153.67

-8.641.69

3.811.67

11.029.629.40

35.3512.79-4.327.54

16.6935.42-8.7517.444.323.76

16.0016.22-0.708.319.72

37.153.67

-8.641.69

-0.00-0.00-0.000.00

-0.000.00

-0.000.000.00

-0.000.000.000.00

-0.00-0.00-0.00-0.00-0.000.00

-0.00-0.00-0.000.00

-0.00

-2.020.81

-0.74-0.14-0.18-0.20-0.320.320.15

-0.39-0.19-0.710.82

-0.27-0.21-0.630.380.250.44

-0.570.64

-0.090.73

-0.76

1.41-0.910.300.081.721.371.760.60

-0.711.463.76

-1.832.280.891.732.860.640.27

-0.881.982.490.600.071.46

0.840.51

-0.65-0.25-1.28-2.00-0.740.17

-0.18-0.36-1.301.09

-0.88-0.24-0.28-0.05-0.58-0.10-0.36-0.54-1.96-0.58-0.08-0.42

0.220.41

-1.09-0.310.27

-0.830.701.09

-0.740.702.26

-1.442.220.371.232.180.430.43

-0.800.871.17

-0.070.730.27

Index* : Wilshire REIT Index



9

Quarter Index*Total

ReturnEquityReturn


TimingSector

WeightingStock

Selection Trading Total12/07200703/0806/0809/0812/08200803/0906/0909/09

FromInceptionFrom 06/98To PresentAvg UpMarketsAvg DownMarkets

-13.54-17.55

2.14-5.394.78

-39.95-39.20-33.9231.6635.42

6.27

7.06

9.05

-9.34

-14.16-17.32

1.34-5.58-2.88

-41.13-45.29-32.5532.0530.59

6.30

6.83

8.79

-8.90

-14.16-17.32

1.34-5.58-2.88

-41.13-45.29-32.5532.0530.59

6.30

6.83

8.79

-8.90

0.000.00

-0.00-0.00-0.000.00

-0.000.00

-0.00-0.00

-0.00

-0.00

-0.00

0.00

-0.99-0.98-0.370.70

-2.34-3.48-4.35-0.400.110.24

-0.87

-0.920.84

-1.25-1.21-4.420.62

-3.431.181.21

-2.91

1.19

1.290.380.820.32

-0.901.691.690.59

-0.94-2.16

-0.54

-0.610.23

-0.79-0.20-7.66-1.18-6.091.370.39

-4.83

0.03

-0.23

-0.27

0.45Index* : Wilshire REIT Index

VVTacoma Employes’ Retirement SystemREIT Sector Attribution Analysis


10

SectorPortfolio

Mkt Val % ReturnWilshire REIT Index


Stock Sector TotalDiversifiedHealth CareOtherFactory OutletRegional RetailMfg. HousingStorageHotelIndustrialApartmentsOfficeLocal RetailQuarter Total

6.773.98

17.830.00

15.250.006.951.739.55

18.3013.116.51

100.00

44.6022.1029.10

39.24

15.8140.2932.1833.9142.3116.7632.79

7.415.41

20.060.00

13.050.176.615.898.83

13.3511.727.51

100.00

38.4323.0129.75

39.9963.5616.4244.5237.8037.3948.7031.0035.42

0.42-0.04-0.120.00

-0.110.00

-0.04-0.07-0.54-0.64-0.84-0.93-2.91

-0.020.180.13

-0.000.10

-0.05-0.06-0.380.020.100.180.040.24

0.400.140.010.00

-0.01-0.05-0.11-0.45-0.52-0.54-0.65-0.88-2.67





11


Simon Ppty Group IncPublic Storage IncEquity Residential PBoston Properties InVornado Rlty TrAmb Property Corp.Hcp IncNationwide Health PpAvalonbay Cmntys IncFederal Realty Invt

10.35.95.25.25.14.74.54.24.23.9

6,6713,8303,3913,3873,3083,0362,9032,7152,7122,547


Sl Green Rlty CorpMacerich CoStarwood Hotels&ResoBrandywine Rlty TrVornado Rlty TrLiberty Ppty TrHost Marriott Corp NEquity Residential PBoston Properties InHcp Inc

2.21.42.51.65.13.51.75.25.24.5

91.5975.9748.7848.1944.6043.2640.2939.5838.4437.99


Regency Ctrs CorpSaul Ctrs IncCorporate Office PptPublic Storage IncCorporate Office PptPublic Storage IncPublic Storage IncEquity Lifestyle PptFederal Realty InvtKilroy Rlty Corp

2.91.40.10.50.30.25.91.83.90.4

7.699.96

11.9612.3214.9515.1315.8115.8620.3521.81


1st2nd3rd4th


70.315.910.83.0

2,584,1171,423,866

574,462

49.034.916.10.0

36.525.6-7.1

13.426.751.58.3

6.24.92.9

Wilshire REIT Index



12



Health Care Reit IncDigital Rlty Tr IncHighwoods Pptys IncRegency Ctrs CorpEastgroup Ppty IncBrandywine Rlty TrExtra Space StorageNationwide Health PpPost Pptys IncSl Green Rlty CorpGlimcher Rlty TrLiberty Ppty TrCorporate Office PptAmb Property Corp.Equity Lifestyle PptEquity Residential PTaubman Ctrs Inc

44,70018,60027,00020,30013,10038,40037,9009,900

12,4004,900

37,3003,7002,8001,700

400300200

1,860850849752501424400307223215137120103391795

***

*

*

*

Vornado Rlty Tr Boston Properties InHcp Inc Alexandria Real EstaBRE Properties Avalonbay Cmntys IncBiomed Realty Trust Taubman Ctrs Inc Saul Ctrs Inc Simon Ppty Group IncRegency Ctrs Corp Kilroy Rlty Corp Starwood Hotels&ResoPublic Storage Inc Host Marriott Corp NMacerich Co Essex Ppty Tr Inc Diamondrock HospitalPublic Storage Inc

24,08515,60033,70014,80013,9005,800

39,70010,2009,7003,912

10,6007,5005,8002,400

11,8004,4201,6005,100

200

1,5511,023

969530435422406368311272209208192181139134127414

*

*

*

VVTacoma Employes’ Retirement SystemREIT Holdings


13

NameShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnApartmentsAvalonbay Cmntys IncBRE PropertiesEquity Residential PEssex Ppty Tr IncPost Pptys Inc

DiversifiedVornado Rlty Tr

HotelHost Marriott Corp N

IndustrialAmb Property Corp.Eastgroup Ppty IncKilroy Rlty CorpLiberty Ppty Tr

OfficeAlexandria Real EstaBoston Properties InBrandywine Rlty Tr

43,08261,945

110,15032,44562,096

75,449

103,585

130,5900

40,19865,700

14,80067,27054,000

37,28248,045

110,45030,84574,496

51,364

91,785

132,29013,10032,69869,400

051,67092,400

55.94023.76022.23062.23013.440

45.030

8.390

18.81033.02020.54023.040

35.79047.7007.450

72.73031.30030.70079.58018.000

64.410

11.770

22.95038.22027.74032.530

54.35065.55011.040

2,4101,4722,4492,019

8359,184

3,3973,397

869869

2,4560

8261,5144,796

5303,209

402

2,7121,5043,3912,4551,341

11,402

3,3083,308

1,0801,080

3,036501907

2,2586,701

03,3871,020

4.82.94.94.01.7

18.3

6.86.8

1.71.7

4.90.01.63.09.6

1.16.40.8

4.22.35.23.82.1

17.6

5.15.1

1.71.7

4.70.81.43.5

10.3

0.05.21.6

31.6333.4639.5829.4935.3733.91

44.6044.60

40.2940.29

23.84NA

36.7043.2632.18

52.8238.4448.19



14

NameShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnOffice (cont.)Corporate Office PptHighwoods Pptys IncSl Green Rlty Corp

Local RetailFederal Realty InvtSaul Ctrs Inc

Regional RetailGlimcher Rlty TrMacerich CoSimon Ppty Group IncTaubman Ctrs Inc

StoragePublic Storage Inc

Health CareHealth Care Reit IncNationwide Health Pp

61,2360

28,160

41,50038,235

033,249

100,00071,820

53,300

077,700

64,03627,00033,060

41,50028,535

37,30028,82996,08861,620

50,900

44,70087,600

29.33022.37022.940

51.52029.570

2.90017.61051.43026.860

65.480

34.10025.740

36.88031.45043.850

61.37032.100

3.67030.33069.43036.080

75.240

41.62030.990

1,7960

6466,583

2,1381,1313,269

0586

5,1431,9297,658

3,4903,490

02,0002,000

2,362849

1,4509,068

2,547916

3,463

137874

6,6712,2239,906

3,8303,830

1,8602,7154,575

3.60.01.3

13.1

4.32.36.5

0.01.2

10.23.8

15.3

7.07.0

0.04.04.0

3.61.32.2

14.0

3.91.45.3

0.21.4

10.33.4

15.3

5.95.9

2.94.27.1

27.07NA

91.5942.31

20.359.96

16.76

NA75.9736.2835.9739.24

15.8115.81

NA22.1022.10



15

NameShares

6/30/09 9/30/09Price

6/30/09 9/30/09Mkt Value $(000)

6/30/09 9/30/09% Portfolio

6/30/09 9/30/09Buy & Hold

ReturnOtherBiomed Realty TrustCorporate Office PptCorporate Office PptDiamondrock HospitalDigital Rlty Tr IncEquity Lifestyle PptExtra Space StorageHcp IncKilroy Rlty CorpKilroy Rlty CorpPublic Storage IncPublic Storage IncRegency Ctrs CorpRegency Ctrs CorpStarwood Hotels&ResoTaubman Ctrs Inc

39,7008,8001,900

98,8600

27,0000

134,70015,50010,8006,600

16,30010,60030,50054,89022,000

08,8001,900

93,76018,60027,40037,900

101,00015,50010,8006,400

16,3000

50,80049,09022,200

10.23020.07021.4806.260

35.85037.1808.350

21.19019.06018.35018.60019.44019.76034.91022.20018.500

13.80022.59023.5508.100

45.71042.79010.55028.74023.25021.82021.02021.43022.70037.05033.03022.950

40617741

6190

1,0040

2,854295198123317209

1,0651,219

4078,934

019945

759850

1,172400

2,903360236135349

01,8821,621

50911,421

0.80.40.11.20.02.00.05.70.60.40.20.60.42.12.40.8

17.8

0.00.30.11.21.31.80.64.50.60.40.20.50.02.92.50.8

17.6

35.9414.9511.9629.39

NA15.86

NA37.9925.0621.8115.1312.3217.367.69

48.7826.7929.10


1

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

10 YearsInception

DateInception

ReturnNorthern Trust S&P 500 Index Fund Standard & Poor’s 500

Harbour Vest Partners

Private Equity Composite Private Equity Custom Benchmark

15.6915.60

-2.08

15.0115.68

34.5834.01

-5.64

33.6839.85

3/31/09 3/31/09

3/31/09

3/31/09 3/31/09

34.5834.01

-5.64

33.6839.85

TACOMA EMPLOYES’ RETIREMENT SYSTEMPOLICIES & BENCHMARKS

TOTAL FUND POLICY

Weighted Policy Return = Policy Targets x Benchmark Returns

April 1, 2009: 21.00% S&P 50021.00% International Equity Custom Benchmark15.00% ML High Yield Master II25.00% Barclays Aggregate8.00% Wilshire REIT

10.00% Private Equity Custom Benchmark

February 1, 2009: 21.00% S&P 50021.00% MSCI ACWI ex U.S. (N)15.00% ML High Yield Master II25.00% Barclays Aggregate8.00% Wilshire REIT

10.00% Private Equity Custom Benchmark

3rd Qtr 2006: 40.00% S&P 50015.00% MSCI ACWI ex U.S. (N)10.00% ML High Yield Master II20.00% Barclays Aggregate15.00% Wilshire REIT

2nd Qtr 2006: 40.00% S&P 50015.00% MSCI ACWI ex U.S. (N)7.50% ML High Yield Master II22.50% Barclays Aggregate15.00% Wilshire REIT

1st Qtr 2006: 40.00% S&P 50015.00% MSCI Eur/Pac 50/50 (N)5.00% ML High Yield Master II25.00% Barclays Aggregate15.00% Wilshire REIT

4th Qtr 2005: 40.00% S&P 50015.00% MSCI Eur/Pac 50/50 (N)2.50% ML High Yield Master II

27.50% Barclays Aggregate15.00% Wilshire REIT

1st Qtr 2003 to 3rd Qtr 2005: 40.00% S&P 50016.00% MSCI Eur/Pac 50/50 (N)29.00% Barclays Aggregate15.00% Wilshire REIT

1st Qtr 2001 to 4th Qtr 2002: 40.00% S&P 50016.00% MSCI Eur/Pac 50/50 (N)29.00% Citigroup LPF15.00% Wilshire Real Estate Securities

2nd Qtr 1997 to 4th Qtr 2000: 40.00% S&P 50016.00% MSCI Eur/Pac 50/50 (N)29.00% Citigroup LPF12.00% Wilshire Real Estate Securities3.00% Wilshire Real Estate Fund

1st Qtr 1980 to 1st Qtr 1997 40.00% S&P 50016.00% MSCI Eur/Pac 50/50 (N)29.00% Citigroup LPF15.00% Wilshire Real Estate Fund

Actuarial Return

1st Quarter 2003 to Present = 7.75% Annually1st Quarter 2001 to 4th Quarter 2002 = 8.00% Annually2nd Quarter 1997 to 4th Quarter 2000 = 7.50% Annually3rd Quarter 1979 to 1st Quarter 1997 = 7.00% Annually

Expected Return

1st Quarter 2001 to Present = 8.40% Annually2nd Quarter 1997 to 4th Quarter 2000 = 9.10% Annually2nd Quarter 1979 to 1st Quarter 1997 = 10.40% Annually

DOMESTIC EQUITY

Northern Trust Large Cap CoreBenchmark = S&P 500 (1Q91 – Present)

Northern Trust S&P 500 Index (Non-Lending)Benchmark = S&P 500 (3Q09 – Present)

Northern Trust Large Cap GrowthBenchmark = Russell 1000 Growth (2Q09 – Present)

Northern Trust Small Small Cap CoreBenchmark = Russell 2000 (1Q91 – Present)

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

INTECH

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

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

INTERNATIONAL EQUITY

Northern Trust EAFE IndexBenchmark = MSCI EAFE Index (N) (2Q09 – Present)

Northern Trust Emerging MarketsBenchmark = MSCI Emerging Markets Indx. (N) (2Q09 – Present)

TT InternationalBenchmark = MSCI EAFE Index (N) (2Q99 – Present)Performance Objective = Benchmark + 2.60% (4Q04 – Present)

Benchmark + 2.00% (2Q99 – 3Q04)

DOMESTIC FIXED

Metropolitan WestBenchmark = Lehman Aggregate (2Q02 – Present)Performance Objective = Benchmark + 0.75% (2Q02 – Present)

HIGH YIELD FIXED

Post AdvisoryBenchmark = ML High Yield Master II (4Q05 – Present)Performance Objective = ML High Yield Master II + 1.75% (4Q05 – Present)

REAL ESTATE

Adelante Capital ManagementBenchmark = Wilshire REIT Index (1Q98 – Present)Performance Objective = Benchmark + 1.00% (1Q98 – Present)

PRIVATE EQUITY

Private Equity Parking FundBenchmark = S&P 500 (1Q09 – Present)

Harbour VestBenchmark = S&P 500 Lagged Quarter Return (1Q09 – Present)

VV GLOSSARY

As Allocated to Managers - The percent of total Trust assets held by the individual managers. The percentages are also summarized by manager category, i.e. Domestic Equity Managers, etc. As Invested by Managers - The percent of total Trust assets that each manager holds in each asset class. The percentages are also summarized by manager category. Beta - A measure of relative volatility. A beta over 1.0 indicates above- market volatility; below 1.0, less volatility. Current Yield - The stated coupon rate of a bond divided by its current market price. Distributions & Administrative Fees - Amounts withdrawn from the trust for the payment of benefits or non-manager fees. DBT/EQ - Debt to equity ratio. A measure of the relative amount of funds provided by lenders and owners.

Debt / Equity Ratio = Long Term Debt Shareholders’ Equity

Effective Duration - An option-adjusted measure of the sensitivity of the portfolio to changes in interest rates. Equity Yield - The ratio of the level of current income from dividends to the most recent share price.

Equity Yield = Indicated Annual Dividend Stock Price

Interest Rate Anticipation - The portion of net management effect which is attributable to deviation from the duration of the benchmark. Investment Gain/Loss - The investment income and realized or unrealized increase (decrease) in market value of a portfolio for the time period. Investment Fees - Amounts paid to investment managers as investment management fees. Market Capitalization - The sum of the market value of outstanding common stock of a company. Maturity - The date on which a loan, bond, mortgage or other debt/security becomes due and is to be repaid. Median Market Capitalization - The market capitalization that exceeds one half of the values in a population and which is exceeded by the other half of the values. The median has a percentile rank of 50. Net Contribution - The total amount contributed to the trust during the quarter. It includes amounts contributed to the managers’ accounts and amounts transferred within the trust from the managers’ accounts. Amounts withdrawn from the trust are not reflected in this column, since they are included in "Distributions & Administrative Fees" or "Investment Fees." Net/Real Return - A client or manager’s total return adjusted for inflation by using the Consumer Price Index.

VV GLOSSARY

P/B - Price to book ratio, the current market price of a stock divided by the previous year’s book value per share.

P/B = Market Price of Common Stock Book Value per Share

Portfolio P/B is computed as the reciprocal of the value-weighted summation of the individual stocks’ B/Ps. P/E - Price/earnings ratio, the current market price of a stock divided by the previous year’s earning per share.

P/E = Market Price of Common StockLast 12 months’ EPS

Portfolio P/E is computed as the reciprocal of the value-weighted summation of the individual stocks’ E/Ps. Performance Comparison - Data for Wilshire Associates UniverseComparison Service is supplied by Wilshire’s Manager Universe Database and by Wilshire’s Cooperative Universe Service. Quality - Weighted portfolio quality rating ranked as follows:

GOV = 5.00 - 4.5 AAA = 4.49 - 3.5AA = 3.49 - 2.5 A = 2.49 - 1.5BAA = 1.49 - 0.5 <BAA = 0.49 - 0.0

R Square - The percent diversification relative to the market. The higher the number (up to 1.0), the more diversified.

ROE - Return on equity; return to stockholders measured by relating profits to stockholder’s equity.

ROE = Net Profit After Tax Stockholders’ Equity

Sector/Issue - The portion of net management effect which is attributable to a manager’s ability to choose bond market sectors and individual issues that outperform the market. Sector Weighting - The portion of net management effect which is attributable to a manager’s ability to allocate assets across market sectors. Stock Selection - The portion of net management effect which is attributableto a manager’s ability to choose securities that outperform the market. Style - Measures the return impact of a manager’s investment style according to the selected index. Timing - The portion of net management effect which is attributable to a manager’s ability to use cash in anticipation of falling markets. Total Fund Attribution Return Contribution - The exhibit can be run with or without a Universe Allocation. The formulas below assume a Universe Allocation. If the exhibit is run without a Universe Allocation the relevant return contribution is included in the Strategic Policy Return Contribution. Universe Allocation =

(Universe Return * Universe Allocation) / 100.0

VV GLOSSARY

Strategic Policy = ((1.0 + (Policy Return * Policy Allocation / 100.0)/100.0) / (1.0 + (Universe Return * Universe Allocation / 100.0)) - 1.0) * 100.0

Actual Allocation =

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

Active Management =

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

Actual Return =

(Actual Return * Actual Allocation) / 100.0 Total Net Management Effect - Measures the added return produced by a manager.

Trading Effect - Measures the impact of quarterly trading on portfolio returns, determined by comparing the actual portfolio return with that of the buy-and-hold portfolio. The buy-and-hold return is used to illustrate the results that would have been obtained if the manager had maintained the initial holdings throughout the period. Turnover - The rate at which securities within a portfolio are exchanged for other securities, defined as the lesser of sales or purchases during a specified period divided by the average market value.

Equity Turnover = Lesser of Equity Purchases or SalesAverage Equity Market Value

Years To Effective Maturity - The time remaining in years until the bond’s last payment of interest and principal, taking into account prepayment contingencies of the bond. Yield To Effective Maturity - The option-adjusted yield provided by a bond to its maturity date.

VV GLOSSARY

Wilshire Equity SectorsCGD Capital GoodsCDU Consumer DurablesCND Consumer Non-DurablesENR EnergyFIN FinanceM&S Materials and ServicesTEC TechnologyTRN TransportationUTL Utilities

Wilshire International SectorsENR EnergyMAT MaterialsCAP Capital EquipmentCON Consumer GoodsSRV ServicesFIN FinanceMIN Multi-IndustryGMN Gold MinesMIS Miscellaneous

Global Industry Classification Standard SectorsThe Global Industry Classification Standard (GICS) was developed by andis the exclusive property of Morgan Stanley Capital International Inc. andStandard & Poor’s. GICS is the service mark of MSCI and S&P and has been licensed for use by Wilshire Associates.CDI Consumer DiscretionaryCST Consumer StaplesENR EnergyFIN FinancialsHTH HealthcareIND IndustrialsINF Information TechnologyMAT MaterialsTEL Telecommunication ServicesUTL Utilities

Fixed Income SectorsMaturity Sector AnalysisFIN FinanceFOR Foreign (Yankee Bonds)GA Treasuries & non-mortgage government agenciesIND IndustrialMISC Miscellaneous, cash and cash equivalentsMTGE Government National Mortgage Association (GNMA),

Federal National Mortgage Association (FNMA), FederalHome Loan Mortgage Corporation (FHLMC), andcorporate mortgages

TRAN TransportationUTL Utilities

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