WEALTH SOLUTIONS GROUP

ALIGN Strategic Portfolios Q1 2020 Research Note

Global Pandemic Weighs on Markets. The ALIGN Strategic Portfolios Were Not Immune to the Turmoil.

The Markets at a Glance

Q1 Recap

The longest bull market ended this quarter as the novel coronavirus spread across the globe. Investors braced for a recession by selling equities and cyclical commodities in favor of safer Treasuries and gold. Within equities, Growth protected more than Value, Large-Cap outper-formed Small-cap stocks, and the US sold off less than international. Oil slumped due to weak global demand and increased production from Saudi Arabia and Russia.

International equities also posted losses this quarter. Developed markets, as measured by the MSCI EAFE Index fell 22.8% and riskier emerging markets slumped 23.6%. The divergence be-tween growth and value continued to widen in international markets.

The broad US bond market, as measured by the Bloomberg Barclays US Agg Index, returned 3.2% in Q1. Investors sought quality, favoring Treasuries, longer-dated, higher-rated fixed in-come over higher yielding corporates and municipal bonds. The 10-Year Treasury yield ended the quarter at 0.7%.

We expect volatility to continue until the virus is contained, which will allow the economy to get back on track. We will continue to vigilantly monitor the ALIGN portfolios to seek the best risk profile and return for investors.

As always, thank you for your continued trust and confidence.

Kathy Blake Carey, CFA

Aaron Benson, CFA

April 16, 2020

IN THIS REPORT

2 Performance Review

• Absolute Performance

• Relative Performance

3 What Worked,

What Didn’t Work

• Contributing Factors

• Detracting Factors

4 Current Perspectives

• Positioning

• Activity

5 Asset Class Reviews

• Performance

• Commentary

Performance returns are as of 3/31/20

Asset Class Representative Benchmark Q1

Return

YTD

Return

US Large Cap S&P 500 -19.6% -19.6%

US Small Cap Russell 2000® -30.6% -30.6%

International MSCI EAFE -22.8% -22.8%

Commodities Bloomberg Commodity -23.3% -23.3%

Municipal Bonds BBgBarc. Municipal -0.6% -0.6%

Taxable Bonds BBgBarc. Aggregate 3.2% 3.2%

Cash FTSE 3-Month T-Bills 0.4% 0.4%

Performance Review

Absolute Performance The ALIGN portfolios posted nega-tive absolute returns for Q1 as the global pandemic drove equity mar-kets lower. (Figure 1) All Growth posted the weakest results with a return of –23%. The Conservative Income portfolio fared better by on-ly declining 5.6% in the quarter.

Results were hurt by exposure to International markets which were down 22.8% as measured by MSCI EAFE. Emerging Markets acted a little worse with the MSCI EM down 23.6% in Q1. US Markets were slightly better with the S&P 500 down 19.6%, although smaller stocks fared worse with the Russell 2000 down 30.6%. In the midst of turmoil, the Fed took interest rates to zero. Fixed income markets pro-vided stability with the Bloomberg Barclays Agg Bond index posting a 3.2% return for Q1.

Relative Performance

All of the ALIGN portfolios underper-formed their benchmarks in Q1(Figure 2). The portfolios with more fixed income exposure lagged by the largest margin. Income with Growth trailed its benchmark the most and lagged 3.7%. At issue was more sub-stantial allocations to shorter-duration bonds and more corporate issuers which lagged the broad Agg Index as interest rates hit all time lows. Munis performed even worse as the market experienced signifi-cant outflows.

The All Growth portfolio performed the best on a relative basis but still missed the benchmark by 1.6% in Q1. A main culprit of the relative underperformance was poor results from our International funds due to a value bias in stocks. Domestic stock holdings held up better, but value remained a drag.

Portfolio Q1 Return

3-Year Return

5-Year Return

10-Year Return

All Growth -23.0% 1.0% 2.5% 6.6% Capital Growth -19.3% 1.6% 2.7% 6.1%

Growth w/ Income -15.4% 2.1% 2.9% 5.6% Income w/ Growth -10.8% 2.4% 2.8% 4.7% Conservative Income -5.6% 2.8% 2.7% 4.0% MSCI ACWI -21.4% 1.5% 2.8% 5.9% BBgBarc.Agg Bond 3.2% 4.8% 3.4% 3.9%

Figure 1: ALIGN Portfolio Performance

Performance returns are as of 3/31/20

Figure 2: Performance Relative to Benchmarks (%)

See appendix for important benchmark disclosures. All performance returns are as of 3/31/20.

Q1

-23.0

-19.3

-15.4

-10.8

-5.6

-21.4

-16.8

-12.0

-7.1

-2.1

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

All Growth Capital Growth Growth w/ Income Income w/ Growth Conservative Income

ALIGN Portfolio

Broad Benchmark

What Worked, What Didn’t Work

Figure 3: Market Cap Distribution

Source: Morningstar Direct

CONTRIBUTING FACTORS

Strong Execution by Small- & Mid-Cap Funds

Large- and Mega-Cap stocks out-performed by a wide margin dur-ing the quarter putting diversified portfolios with exposure to small-er stocks at a disadvantage. We overcame much of this headwind, however, due to exceptional per-formance from the funds selected for each sleeve. We upgraded quality within the Small- and Mid-Cap sleeves by adding Virtus KAR Small Cap Growth in 2017 and Nuance Mid Cap Value in 2019, each of which provided strong downside protection to outper-form their respective benchmarks by more than 9% during the quar-ter. Both sleeves trailed the broader market index due to the near-term dominance of Large-Cap stocks. (Figure 3)

Growth Stock Exposure

The portfolios benefited from a slight growth bias within the do-mestic equity sleeves and strong execution within the Large Growth sleeve. Growth stocks led by the Info Tech sector outper-formed throughout the quarter and during the drawdown in March, whereas Financials, Ener-gy, and other cyclical sectors per-formed poorly. Large Growth was the top-performing equity sleeve from an absolute standpoint and beat its benchmark due to contri-butions from Edgewood and Loomis Sayles. The funds exhibit-ed strong stock selection within the Info Tech, Real Estate, and Healthcare sectors.

DETRACTING FACTORS

International Value Bias

The International Sleeve’s value bias was a significant detractor as Oakmark and Pear Tree Polaris substantially underper-formed the benchmark. Until recently the sleeve demonstrated an ability to outper-form in varying market environments having done so in 2019 despite foreign value stocks trailing foreign growth by the widest margin ever. The sleeve’s more cyclical value positioning fared poorly in Q1, however, with the COVID-19 selloff causing a dramatic correction in cyclical stocks as large segments of the global economy were essentially shut down. We maintain conviction in each underlying fund but took the opportunity to upgrade quality and balance style diversification by adding WCM Focused International Growth to the sleeve.

Bond Duration & Credit

ALIGN’s fixed income allocation was effective as a risk-reducer, hedging against equity losses. An underweight to duration and overweight to credit rela-tive to the broad benchmark further de-tracted from relative performance. A sharp and unexpected drop in interest rates to all-time lows caused long-duration treasuries to appreciate,

benefiting the broad benchmark to a greater extent than our fixed income sleeves given their moderate interest rate sensitivity. Last year, we increased the allocation to Intermediate bonds but maintain a sizable underweight to dura-tion relative to the benchmark. Credit spreads widened further in March, dis-advantaging funds with more exposure to corporates than Treasuries (Figure 4).

Figure 4: Bond Quality Distribution

Source: Morningstar Direct

0

10

20

30

40

2015 2016 2017 2018 2019

Large Cap Mid Cap Small Cap

51

15

25

9

0%

20%

40%

60%

80%

100%

6/2015 12/2015 6/2016 12/2016 6/2017 12/2017 6/2018 12/2018 6/2019 12/2019

AAA AA-A BBB Below BBB

Current Perspectives

ALIGN Positioning

The stock portion of the ALIGN portfolios maintains significant expo-sure to Large-Cap stocks while also gaining diversification benefits from positions in Mid- and Small-Cap stocks. The Mid- and Small-Cap Sleeves substantially outperformed their benchmarks in Q1. ALIGN’s ge-ographic profile continues to be heavier in the U.S. compared to the MSCI ACWI index, which was a rela-tive positive as domestic stocks led in Q1. However, as noted previously, a value bias in our International funds hurt. The portfolios also have less exposure to emerging markets than the benchmark, which helped as EM lagged domestic markets in the quar-ter. From a style standpoint the portfolios have higher exposure to growth-oriented stocks which bene-fited returns as value remained out of favor. Sector positioning shows the largest overweight to the Indus-trials, Financials and Consumer Dis-cretionary. The portfolios are most

Source: Morningstar Direct

We conducted several on-site visits in Q1 including meetings with Edgewood, MainStay Epoch, and Pzena (sub-advisor to John Hancock Classic Value) in New York before markets peaked in mid-February.

We reconnected with every fund in mid-March as the situation surrounding COVID-19 rapidly unfolded causing a dramatic selloff in equities. These im-promptu check-ins amid peak uncertain-ty were meant to record each invest-ment team’s response to the “black swan” event, whether they were adding to falling stocks or de-risking portfolios. Reactions varied but the overriding theme “stick to your knitting” was re-peated as we noted in a mid-quarter update. From our experience, these are critical times to test the mettle of each fund manager to determine how they respond to adversity and position their funds for outperformance going for-ward.

underweight to Technology and Con-sumer Staples (Figure 5) In Fixed In-come, the ALIGN portfolios are over-weight corporate bonds and significantly underweight government issues. ALIGN is also positioned with lower duration than the benchmarks, which was a drag in the quarter as rates dropped rapidly amid Fed cuts. ALIGN also holds more credit risk with a larger weighting to cor-porates and minimal exposure to Treas-uries.

Activity

We placed one trade during the quarter adding WCM Focused International Growth to upgrade quality and balance growth and value styles within the Inter-national Sleeve. We manage ALIGN with a focus on future return potential and maintain conviction in Oakmark Interna-tional and Pear Tree Polaris Foreign Val-ue despite recent challenges. We contin-ue to evaluate risk across the models as each sleeve and underlying fund is con-sidered for its contribution to long-term risk-adjusted performance.

Figure 5: Sector Weightings

17

1514

11

15

6

34

5

1

8

14

19

11

13

109

44

3 4

9

0

2

4

6

8

10

12

14

16

18

20

FIN IT CD HC IND CS ENG MAT RE UTIL COMM

% o

f T

ota

l

ALIGN ACWI

Asset Class Reviews

Large Growth The sleeve outperformed its benchmark by 1.6% in Q1.

Large Growth was the top-performing equity sleeve with an absolute return of -12.5% and also beat its benchmark due to strong stock selection attributable to Loomis Sayles and Edge-wood. Loomis Sayles provided solid downside protection with outperformance largely stemming from stock selection within the Healthcare sector led by biotech company Regeneron, which was up more than 30% on potential for COVID-19 treat-ments. Edgewood continues to execute with strong relative performance driven by stock selection within the Real Estate and Info Tech sectors. Edgewood held up well through the selloff and the team largely maintained the fund’s positioning after redoubling efforts to ensure that each company’s bal-ance sheet remained strong with enough cash to sustain an extended period of disruption

We have no concerns with this sleeve.

Large Value The sleeve underperformed its benchmark by 2% in Q1.

The sleeve’s underperformance was caused by John Hancock Classic Value, which suffered a substantial drawdown due to a sizable overweight to Financials and Energy. We had multiple touchpoints with sub-advisor Pzena in Q1 including an on-site visit in February and follow-up call mid-March with PM Ben Silver. Pzena added to Energy and Financials after determining with additional analysis that companies remain well capital-ized and present attractive valuations as long-term invest-ments. Positioning is consistent with Pzena’s deep value phi-losophy, yet we are disappointed by the magnitude of under-performance. Pzena’s underperformance was partially miti-gated by American Century and Fiduciary, both of which out-

performed the sleeve’s benchmark.

We continue to evaluate John Hancock Classic Value for its long-term contribution to sleeve and portfolio risk-reward characteristics.

Mid Cap The sleeve outperformed its benchmark by 4.9% in Q1.

Outperformance was driven by a combination of strong sector allocation and stock selection across each fund. Nuance Mid Cap Value was the strongest performer, a testament to its manager’s focus on downside protection. Nuance benefited from strong stock selection but an allocation to cash also boosted excess returns. Co-PM Chad Baumler highlighted in December that their proprietary valuation model traded at its most expensive output recorded. Strict adherence to their disciplined valuation framework resulted in the team maxing out their allocation to cash and merger-arbitrage plays such as WABCO Holdings Inc., which had an all-cash offer that they anticipated would close. In addition, Parnassus Mid Cap and Principal Mid Cap outperformed the sleeve’s benchmarks by 3.6% and 3.2% respectively. An overweight allocation to de-fensive sectors such as Cash, Consumer Staples, and Health Care, coupled with zero exposure to the Energy sector drove outperformance at Parnassus. Principal primarily benefited from strong stock selection, especially across the Financial and Real Estate sectors. For example, a concentrated alloca-tion to Brookfield Asset Management, a global leader in alter-native asset management, contributed more than 50bps of excess returns.

We have no concerns with this sleeve.

Small Cap The sleeve outperformed its benchmark by 7.1% in Q1.

The sleeve produced the strongest relative performance, within the ALIGN portfolios. Virtus KAR Small Cap Growth con-tinues to deliver exceptional performance due to security se-lection within Tech, Industrials and Financials, where top con-tributors all had ties to “essential” industries or services. For example DocuSign rose 24%, as businesses scrambled to shift operations online. Harbor Small Cap Value outperformed the sleeve’s benchmark even though growth substantially outper-formed value. Harbor benefited from an underweight to Cons. Disc. and strong stock selection in Healthcare including Emer-gent BioSolutions, which is developing a plasma therapeutic to combat COVID-19.

We have no concerns with this sleeve.

Asset Class Q1 Return

1-Year Return

3-Year Return

5-Year Return

10-Year Return

Large Growth -12.5% 0.3% 11.6% 9.5% 12.3% Large Value -28.7% -19.8% -3.0% 1.8% 6.5% Mid Cap -22.2% -9.8% 1.8% 3.1% 8.6% Small Cap -23.5% -12.5% 5.0% 4.8% 9.3% International -30.3% -21.5% -5.4% -2.7% 2.5% Satellite -19.1% -12.5% -1.5% -0.1% 2.2% Absolute Return -8.5% -7.1% -3.6% -0.9% 0.8% Diversified Yield -16.1% -9.5% -1.3% 0.7% - Short Taxable -0.5% 2.5% 2.2% 1.9% 2.2% Int. Taxable -1.4% 4.1% 3.3% 2.7% 3.6% Short Municipal 0.6% 1.7% 1.7% 1.4% 1.7% Int. Municipal -2.7% 1.0% 2.4% 2.0% 3.0% Performance returns are as of 3/31/20

Asset Class Reviews

International The sleeve underperformed the benchmark by 7.7% in Q1.

Oakmark and Pear Tree Polaris drove the weak relative perfor-mance. Both funds have a bias toward value and cyclical stocks, which sold off during the quarter. Oakmark suffered from dis-appointing stock selection in Financials, Industrials, Consumer Discretionary, and Materials. Pear Tree Polaris also exhibited poor stock picking across Materials and Consumer Discretion-ary. In contrast, MFS outperformed thanks to overweight posi-tions in Health Care, Consumer Staples, and Information Tech-nology. MFS's relative strength could not overcome the deficit from the other 2 funds.

We added WCM Focused International Growth to the sleeve late in the quarter. The addition of WCM should improve diver-sification and downside protection.

Taxable Fixed Income The Taxable sleeves underperformed the benchmark by 1.08%.

The Taxable fixed income sleeves suffered because of an under-weight to duration as policy intervention from the Fed pulled the entire yield curve lower favoring longer duration bonds. An overweight to corporate credit also suppressed relative perfor-mance as concerns mounted regarding economic growth and corporate fundamentals causing Treasury backed issues to dra-matically outperform other lower quality issuers.

An increase to duration in late 2019 helped but the dramatic and unexpected drop in interest rates hurt performance. We will continue to monitor positioning.

Municipal (Tax-Exempt) Fixed Income The sleeve underperformed the benchmark by 1.37% in Q1.

The Muni market sold off dramatically as investors used high quality muni assets as a primary source of liquidity. Muni rates were pushed higher and muni to US Treasury ratios touched historical levels so the sleeves underweight to duration was additive but the broad sleeve was overweight revenue backed securities vs. general obligation bonds and had a modest over-weight to lower quality credit causing the funds to underper-form.

We have confidence these managers can navigate this environ-ment as the markets begin to stabilize.

Satellite The sleeve outperformed its benchmark by 70 bps in Q1.

Satellite asset classes performed roughly in-line with equity markets but high yield offered more downside protection. Wells Fargo Emerging Markets was the laggard though the fund performed in-line with its emerging markets benchmark. Principal Diversified Real Asset underperformed due to an

allocation to floating rate debt, which was partially offset by an underweight to commodities and natural resources. BlackRock High Yield was the top-performing fund in the sleeve but trailed its High Yield benchmark slightly due to an overweight to lower-rated B- and CCC-rated debt.

We have no concerns with this sleeve.

Absolute Return The sleeve underperformed its benchmark by 6.9% in Q1.

Absolute Return underperformed with all three funds in the red as selling pressure spread across market segments includ-ing many alternative asset classes. Templeton and Eaton Vance were negative in absolute and relative terms primarily due to the funds’ exposure to EM debt, on the heels of global recessionary concerns, energy price collapse, and a strong USD. Blackstone performed worse than expected when the selloff led to write-downs in some of the fund’s credit invest-ments, which they viewed this as a significant but technical dislocation that is likely to be resolved over time.

We expect better returns yet Absolute Return outperformed equities contributing to slightly better performance for mod-els that incorporate the sleeve. We expect fund changes made last year to improve prospects going forward.

Diversified Yield The sleeve underperformed its benchmark by 4.9% in Q1.

Diversified Yield sleeve underperformed despite a lower weight to equity. MainStay Epoch Global Equity Yield was the primary detractor due to Energy exposure and an under-weight to Info Tech. When we met with Epoch in February they noted Energy exposure is partially attributable to their desire to maintain a 4% dividend yield for the fund. Higher dividend stocks typically provide strong downside protection but not in Q1 as Growth and Tech outperformed all other cat-egories. Principal Global Diversified Income did not provide as much protection as expected, as it also has some exposure to high dividend stocks. Principal’s fixed income exposure in-cludes some high yield debt, which lagged higher quality bonds due to credit exposure.

We continue to evaluate MainStay Epoch for performance as well as risk characteristics.

Appendix: Definitions and Disclosures

Investors should consider the investment objectives, risks, charges and expenses of each investment carefully before in-vesting. This and other information is found in the ADV, prospec-tus and summary prospectus, which can be obtained from your Baird Financial Advisor. Please read the ADV, prospectus or summary prospectus carefully before investing.

Appendix – Important Disclosures

Disclaimers

Funds used in ALIGN are invested at Net Asset Value (NAV). Inves-

tors attempting to purchase the funds outside of ALIGN may be sub-

ject to a required minimum investment and a sales charge. The in-

vestment advisory fees associated with ALIGN will have the effect of

lowering the returns of the investor.

Data over short time periods generally do not provide meaningful in-

formation about an investment and this should be considered prior to

making a decision.

Indices are unmanaged and an investment cannot be made directly in

an index.

The Russell Indices are a trademark of the Frank Russell Company.

Russell® is a trademark of the Frank Russell Company.

Primary Risks

Investments in international and emerging markets securities include

exposure to risks including currency fluctuations, foreign taxes and

regulations, and the potential for illiquid markets and political instabil-

ity. Small- and mid-cap companies may be hindered as a result of

limited resources or less diverse products or services and have there-

fore historically been more volatile than the stocks of larger, more

established companies. Investments in commodities expose an inves-

tor to potentially high volatility and are generally only suitable for in-

vestors with a high tolerance for risk. In a rising interest rate environ-

ment, the value of fixed-income securities generally declines and con-

versely, in a falling interest rate environment, the value of fixed-

income securities generally increases. High yield or high dividend

securities may be subject to market, interest rate or credit risk and

should not be purchased solely because of the stated yield or divi-

dend rate. Funds may focus on certain sectors that involve a greater

degree of risk than other funds that provide broader diversification.

Definitions

ALIGN Model Portfolios: Performance is based on composite re-

turns unless otherwise noted.

Diversified Yield Blended Index: 50% MSCI World Index, 50% Bar-

clays Global Aggregate Bond index.

Duration: A measure of the sensitivity of the price (the value of princi-

pal) of a fixed-income investment to a change in interest rates; ex-

pressed as a number of years.

Satellite Asset Class Blended Index: 25% Bloomberg Commodity Index (Commodities), 25% Merrill Lynch High Yield Master II Index (High Yield), 50% MSCI World Index.

Sleeve: The combination of multiple funds within each asset class of

the ALIGN active model portfolios; the funds contained in any sleeve

are equally-weighted and periodically rebalanced.

Broad Benchmark: The benchmark blends include allocations to the

following benchmarks: MSCI ACWI (Net) and Bloomberg Barclays

Aggregate Bond. The respective weights (in %) in each model are as

follows: All Growth (100/0), Capital Growth (80/20), Growth with In-

come (60/40), Income with Growth (40/60), Conservative Income

(20/80). All ALIGN returns are gross of Baird fees and do include the

expenses associated with each individual mutual fund. Performance

over one year is annualized. Bloomberg Barclays Aggregate Bond

Index is an unmanaged index that tracks domestic investment grade

bonds, including corporate, government and mortgage-backed securi-

ties. MSCI ACWI Index is a free float-adjusted market capitalization

weighted index that is designed to measure the equity market perfor-

mance of developed and emerging markets. The MSCI ACWI con-

sists of 46 country indexes comprising 23 developed and 23 emerging

market country indexes.

Portfolio Composite and Blended Benchmark Performance

Results are based on fully discretionary accounts under management,

including those accounts no longer in the ALIGN portfolio. Returns

are presented gross and net of management fees and include the

reinvestment of all income. Gross returns are shown as supplemental

information and are stated gross of Baird fees and transaction costs;

net returns are reduced by all fees and transaction costs incurred.

Please refer to the ADV for further information. The U.S. Dollar is the

currency used to express performance. The performance results were

calculated without consideration of the effects of any income taxes

thereon, including withholding tax on foreign dividends.

Performance data quoted represents past performance. Past perfor-mance is not indicative of future results. Investment return and princi-pal value of investment in the portfolio will fluctuate and can result in a loss of portfolio value. Any particular client's account performance may differ from composite results.

Total Returns (as of 3/31/2020)

All Growth YTD 1-Year 5-Year 10-Year

Net of fees -23.2 -13.9 1.6 5.7

Gross of fees -23.0 -13.1 2.5 6.6

Broad Benchmark -21.4 -11.3 2.8 5.9

Capital Growth

Net of fees -19.5 -11.0 1.7 5.1

Gross of fees -19.3 -10.1 2.7 6.1

Broad Benchmark -16.8 -7.2 3.1 5.7

Growth with Income

Net of fees -15.6 -8.0 1.8 4.5

Gross of fees -15.4 -7.0 2.9 5.6

Broad Benchmark -12.0 -3.1 3.3 5.4

Income with Growth

Net of fees -11.0 -4.6 1.7 3.6

Gross of fees -10.8 -3.7 2.8 4.7

Broad Benchmark -18.5 -10.2 2.4 6.0

Conservative Income

Net of fees -5.8 -0.8 1.7 3.0

Gross of fees -5.6 0.2 2.7 4.0

Broad Benchmark -2.1 4.9 3.4 4.5

Appendix: Definitions and Disclosures

Performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and princi-pal value of an investment in a fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. A fund’s current performance may be lower or higher than the performance data quoted. To obtain performance current to the most recent month end, please contact the fund companies directly at the Web sites listed for each of the funds. The funds listed here are the funds in ALIGN as of March 31, 2020. It should be noted that, through the continuous review process, funds

will be added or removed and not all of these funds have been in the ALIGN portfolios since the program’s inception

Average Annual Total Returns (as of 3/31/2020) Since Fund Expense

QTD YTD 1-Yr 5-Yr 10-Yr Incept. Incept. Ratio Website

Large Cap Growth

Loomis Sayles Growth -11.40% -11.40% 0.66% 11.28% 13.31% 8.41% 05/16/91 0.66% www.loomissayles.com

Edgewood Growth -11.50% -11.50% 2.05% 13.18% 14.99% 10.64% 02/28/06 1.00% www.edgewood.com

T. Rowe Price Growth Stock -14.62% -14.62% -3.53% 9.53% 12.83% 10.12% 08/28/15 0.52% www.troweprice.com

Russell 1000® Growth Index -14.10% -14.10% 0.91% 10.36% 12.97% 11.13% 12/31/78 0.00% www.russell.com

Large Cap Value

American Century Equity Income -21.53% -21.53% -11.62% 5.14% 8.21% 7.68% 07/08/98 0.71% www.americancentury.com

FMI Large Cap Institutional -23.38% -23.38% -14.31% 3.51% 8.10% 4.69% 10/31/16 0.68% www.fiduciarymgmt.com

John Hancock Classic Value -41.37% -41.37% -33.85% -3.65% 3.78% 4.51% 11/11/02 0.93% www.johnhancock.com

Russell 1000® Value Index -26.73% -26.73% -17.17% 1.90% 7.67% 11.08% 12/31/78 0.00% www.russell.com

Mid Cap

Nuance Mid Cap Value -19.25% -19.25% -5.64% 6.86% 0.00% 7.09% 12/31/13 0.93% www.nuanceinvestments.com

Parnassus Mid Cap -23.51% -23.51% -15.00% 3.99% 9.25% 4.30% 04/30/15 0.75% www.parnassus.com

Principal MidCap Blend -23.88% -23.88% -8.79% 5.97% 12.31% 9.80% 03/01/01 0.70% www.principal.com

Russell Midcap® Index -27.07% -27.07% -18.31% 1.85% 8.77% 12.26% 12/31/78 0.00% www.russell.com

Small Cap

Harbor Small Cap Value -30.15% -30.15% -20.40% 0.96% 7.62% 8.07% 12/14/01 0.87% www.harborfunds.com

Virtus KAR Small Cap Growth -17.27% -17.27% -5.05% 16.04% 16.23% 11.15% 06/28/06 1.11% www.virtus.com

Russell 2000® Index -30.61% -30.61% -23.99% -0.25% 6.90% 10.37% 12/31/78 0.00% www.russell.com

International

Pear Tree Polaris Foreign Value -33.09% -33.09% -27.50% -3.15% 3.03% 5.67% 12/18/98 1.04% www.peartreefunds.com

MFS Instl International Equity -19.89% -19.89% -7.61% 2.15% 5.03% 6.97% 01/31/96 0.69% www.mfs.com

Oakmark International -38.08% -38.08% -29.38% -5.63% 1.76% -6.68% 11/30/16 0.81% www.oakmark.com

WCM Focused International Growth -16.82% -16.82% -0.34% 6.74% 0.00% 6.47% 05/31/11 1.03% www.wcminvest.com

MSCI EAFE -22.83% -22.83% -14.38% -0.62% 2.72% 8.08% 03/31/86 0.00% www.msci.com

Short Term Taxable

Baird Short-Term Bond -0.48% -0.48% 2.52% 1.90% 2.23% 2.72% 08/31/04 0.30% www.bairdfunds.com

BarCap Govt/Credit 1-3 Yr 1.69% 1.69% 4.53% 1.90% 1.62% 6.04% 01/30/76 0.00% www.barclays.com

Short Term Tax-Exempt

T. Rowe Price Tx-Free Sht-Interm -0.66% -0.66% 1.71% 1.34% 1.76% 1.98% 11/29/16 0.41% www.troweprice.com

Vanguard Ltd-Term Tax-Ex -0.53% -0.53% 1.94% 1.63% 1.81% 2.65% 02/12/01 0.09% www.vanguard.com

ML Municipals 1-3 Yr -0.11% -0.11% 1.71% 1.26% 1.28% 3.49% 12/30/88 0.00% www.barclays.com

Intermediate Term Taxable

BlackRock Strategic Income Opps -5.75% -5.75% -0.92% 1.49% 3.48% 3.64% 02/05/08 0.74% www.blackrock.com

Dodge & Cox Income -0.70% -0.70% 5.08% 3.28% 4.12% 6.58% 01/03/89 0.42% www.dodgeandcox.com

Metropolitan West Total Return 2.31% 2.31% 8.16% 3.22% 4.81% 5.99% 03/31/00 0.44% www.mwamllc.com

BarCap US Govt/Credit Interm 2.40% 2.40% 6.88% 2.76% 3.14% 6.85% 01/03/00 - www.barclays.com

Intermediate Term Tax-Exempt

Baird Quality Intermediate Muni Bd 0.34% 0.34% 3.62% 2.25% 2.88% 3.93% 03/30/01 0.30% www.bairdfunds.com

T. Rowe Price Summit Muni Interm -1.08% -1.08% 2.60% 2.44% 3.41% 4.42% 10/29/93 0.50% www.troweprice.com

BlackRock Strategic Muni Opps -7.44% -7.44% -3.72% 2.35% 4.02% 4.97% 10/31/88 0.77% www.blackrock.com

BarCap Municipal 5 Yr 4-6 -1.04% -1.04% 2.19% 2.08% 2.76% 4.90% 01/02/00 - www.barclays.com

Satellite Asset Classes

BlackRock High Yield Bond -13.46% -13.46% -7.00% 2.37% 5.64% 6.55% 11/19/98 0.60% www.blackrock.com

Principal Diversified Real Asset -19.50% -19.50% -14.82% -2.66% 1.76% 1.68% 03/16/10 0.85% www.principalfunds.com

Wells Fargo Adv. Emerg Mkts Eq -23.74% -23.74% -13.56% 1.54% 1.62% 1.62% 07/30/10 1.19% www.wellsfargofunds.com

Satellite Asset Class Blended Index -19.81% -19.81% -13.09% -0.16% 2.54% 7.62% 12/31/90 -

Absolute Return

Eaton Vance Glbl Macro Abs Return -6.41% -6.41% 0.70% 1.65% 1.94% 3.20% 06/27/07 0.75% www.eatonvance.com

Blackstone Multi-Strategy Alt -14.79% -14.79% -12.32% -0.55% 0.00% 0.27% 06/16/14 3.19% www.blackstone.com

Templeton Global Bond -4.43% -4.43% -5.45% 0.49% 2.59% 6.16% 01/02/97 0.60% www.franklintempleton.com

HFRI Fund of Fund Conserv. Index -1.64% -1.64% 1.38% 1.60% 2.44% 5.46% 12/31/89 -

Diversified Yield

MainStay Epoch Glbl Equity Yield -24.74% -24.74% -17.58% -0.19% 5.40% 4.72% 12/27/05 0.85% www.nylinvestments.com/

Principal Global Div Inc -16.97% -16.97% -11.29% 0.74% 4.72% 7.95% 12/15/08 0.69% www.principal.com

JHancock Strategic Income -5.31% -5.31% 0.58% 1.72% 4.04% 5.85% 09/04/01 0.53% www.johnhancock.com

Diversified Yield Blended Index -11.21% -11.21% -3.39% 2.98% 4.38% 4.65% 12/29/00 -