portfolio review 2nd quarter 2011bouldernewhireplan.org/images/boulder_f_p_report_2q11.pdf · •...

Wendy J. Dominguez, MBAGordon Tewell, CFA, CPC

PORTFOLIO REVIEW2nd Quarter 2011

Jerry Huggins, CFP, MBA

Prepared by: Douglas Inglee

Disclaimer The preceding statistical analysis was prepared by Innovest Portfolio Solutions LLC with data provided by Investment Metrics (IM), Strategic Financial Solutions, LLC, Lipper and Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to the vendors listed above and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. None of the vendors nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Innovest compiles the information utilizing secondary data from statements provided by the plan trustee and/or custodian, This report may also contain returns and valuations from outside sources as directed by the client. Innovest assumes no responsibility for the accuracy of these valuations or return methodologies. Reasonable care has been taken to assure the accuracy of the computer software and databases. Innovest disclaims responsibility, financial or otherwise for the accuracy and completeness of this report. Copyright 2011 by Innovest Portfolio Solutions LLC Inc. Note: Actual client mutual fund returns are reflected on the table of returns page. Fund pages subsequent to the table of returns reflect the representative mutual fund with the longest track record and may not be the actual share class held by the client. “Copyright 2011, Standard & Poor’s Financial Services LLC. Reproduction of S&P Index Services in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Index Services (2011)

Copyright MSCI 2011. Unpublished. All Rights Reserved. This information may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used to create any financial instruments or products or any indices. This information is provided on an “as is” basis and the user of this information assumes the entire risk of any use it may make or permit to be made of this information. Neither MSCI, any or its affiliates or any other person involved in or related to compiling, computing or creating this information makes any express or implied warranties or representations with respect to such information or the results to be obtained by the use thereof, and MSCI, its affiliates and each such other person hereby expressly disclaim all warranties (including, without limitation, all warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any other person involved in or related to compiling, computing or creating this information have any liability for any direct, indirect, special, incidental, punitive, consequential or any other damages (including, without limitation, lost profits) even if notified of, or if it might otherwise have anticipated, the possibility of such damages.

June 30, 2011Second Quarter 2011 – Markets and Major Eventsn

Tota

l Ret

urn

April May JuneApril

• U.S. home prices began the quarter at a nine-year low.

• Gasoline closed the month at $3 88 a gallon

May

• Osama bin Laden was killed in Pakistan.

• Consumer prices rose 3.6% year over year

June

• Greece narrowly avoided default on its sovereign debt.

• Unemployment rose to 9.2%$3.88 a gallon.

• The S&P 500 rose for the eighth consecutive month.

• S&P cut the outlook for U.S. government debt to “negative.”

year-over-year.

• Consumer confidence fell to the lowest level in seven months.

• Fears of economic weakness prompted a bond rally.

• A decision on raising the U.S. federal debt ceiling was postponed.

• The Fed ended its $600 billion QE2 program.

Sources: TCW Portfolio Analytics, Barclays Capital, MSCI, Bloomberg.

1

June 30, 2011June 30, 2011

SOVEREIGN DEBT

Second Quarter 2011 Capital Markets: HEADWINDS

Federal Debt as a Percentage of GDPSOVEREIGN DEBT• In fiscal year 2011, U.S. federal government debt has been growing

by $4.5 billion per day, as the government has been borrowing 39cents for every dollar of spending.

• The CBO forecasted that interest expense to service federal debt will$ $

g

DP

(%)

climb from $225 billion currently to $507 billion in 2015, a 125%increase.

• Fitch joined Moody’s and S&P in placing the U.S. sovereign creditrating on negative outlook.

• Greece’s government narrowly avoided defaulting on its debt. Perc

enta

ge o

f GD

Greece s government narrowly avoided defaulting on its debt.

• The total cost of aid to Greece, Ireland and Portugal approached €360billion (more than 500 billion U.S. dollars).

CBO Long-Term Budget Outlook, June 2010, alternative fiscal scenario. Sources: Congressional Budget Office, U.S. Census Bureau, Fritz Meyer POV.

UNEMPLOYMENT• The national unemployment rate rose 0.4% during the quarter to

9.2%.

Th l d 27 k t 6 3 illi k

Unemployment Rates

• Those unemployed 27 weeks or more was at 6.3 million workers, or4.1% of the labor force.

• In June the Federal Reserve estimated that unemployment would bearound 8% at the end of 2012.

Unemployment rates as of May 2011. Sources: BLS, J.P. Morgan Asset Management.

2

June 30, 2011HEADWINDS, continued

ENERGY PRICES U S P t l I t P t f GDPENERGY PRICES• Gasoline prices ended the quarter at $3.57/gallon, and crude oil

closed at $95.42/barrel.

• For only the third time in more than 30 years, the U.S. and othermembers of the International Energy Agency released oil from their

U.S. Petroleum Imports as a Percentage of GDP

gy g yemergency reserves.

• Consumer confidence fell to a seven-month low on higher energyprices.

The 2Q 2011 estimate is from J.P. Morgan Asset Management. Sources: BEA and FactSet.

HOUSING & OTHER HEADWINDS• Banks continued to hold Treasuries instead of making loans.

• A recovery in home prices failed to materialize, and existing-homel hl 35% b l th i 2005

Banks’ Loans and Government Bond Holdings

sales were roughly 35% below their 2005 pace.

• The yield on the 10-year U.S. Treasury fell by 0.30% in the quarterto 3.16%, a stiff headwind for investors searching for relativestability and income.

• Despite some recent improvements, Japan’s industrial productionp p , p pwas down 7.2% in the last year.

• Chinese and European central banks tightened policies to slowgrowth and inflation.

As of 6/27/2011. Sources: FactSet, Federal Reserve, Charles Schwab & Co., Inc.

3

June 30, 2011June 30, 2011

U.S. ECONOMIC HEALTH

Second Quarter 2011 Capital Markets: TAILWINDS

Retail SalesU.S. ECONOMIC HEALTH• Retail sales excluding gasoline were up 6.4% over the prior 12

months and 16.6% above the recession lows.

• The U.S. economy completed its second year of a recovery from thedeepest recession since the Great Depression.

• The Fed revised its forecast for 2011 U.S. economic growth to amoderate range of 2.7% to 2.9%.

• ISM manufacturing and service indicies remained in expansionaryterritory.

As of June 2011. Sources: Census Bureau, CalculatedRisk.

CORPORATE PROFITS• First-quarter S&P 500 earnings exceeded expectations and rose

Large Caps are Inexpensive Relative to Small CapsRussell 2000 Forward P/E Divided by the Russell 1000 Forward P/E

more than 16% from the same period last year.

• S&P 500 Index Valuation Measures6/30/2011 15‐Year Average

Forward P/E 12.4 17.1Price to Cash Flow 8.5 11.2Price to Sales 1.2 1.5Dividend Yield 2.1% 1.9%

• Strong corporate balance sheets led to the seventh consecutivequarterly increase in stock buybacks among S&P 500 companies(through 3/31/11). As of 6/30/2011. Sources: Russell Investment Group, IBES, FactSet, J.P. Morgan Asset Management.( g )

• U.S. exports were up 15% in the last 12 months.p g g

4

June 30, 2011TAILWINDS, continued

SHORT-TERM INTEREST RATES

• The spread between three-month LIBOR and three-month U.S.Treasury bills (the TED spread) hit an all-time low, indicatingvery low stress in the international banking system.

LIBOR Spread Over Treasuries

• In June the FOMC left the Fed Funds rate unchanged for atwentieth consecutive meeting to encourage economic growth.

• Year-over-year growth in M2, a measure of money supply,increased to +5.0% in May.

Three-month LIBOR minus three-month U.S. Treasury yield. Sources: U.S. Treasury, British Bankers Association, FactSet, J.P. Morgan Asset Management.

OTHER TAILWINDS

• Consumers’ debt payments as a percentage of disposablepersonal income continued to fall.

Household Debt Service Ratio

personal income continued to fall.

• With 4.6% of the world’s population, the U.S. is the world’slargest manufacturer with a 20.1% global share according toUnited Nations annual data through 2009.

• Municipal bond defaults fell 74% from $2.87 billion in the firstphalf of 2010 to $752 million the first half of 2011.

• The S&P 500 Index rose 30.7% in the one-year period endingJune 30, 2011.

Debt payments as a percentage of disposable personal income, seasonally adjusted. The second p y p g p p y jquarter ratio is an estimate from J.P. Morgan Asset Management. Sources: BEA, FRB, J.P. Morgan Asset Management.

5

US Market Indices Performance US Market Sector Performance

Source: Investment Metrics, LLC

Source: Investment Metrics, LLCSource: Investment Metrics, LLC

0.0

5.0

10.0

-5.0

-10.0

-15.0

S&P

500

Inde

xRu

ssel

l 200

0 In

dex

MSC

I EA

FE In

dex

MSC

I EAF

E LC

Inde

x

MSC

I Em

ergi

ng M

arke

ts In

dex

Barc

lays

Cap

ital A

ggre

gate

BC M

unic

ipal

Bon

dBC

US C

orp:

Hig

h Yi

eld

BC G

loba

l Agg

rega

te E

x U

SDEm

ergi

ng M

arke

t Deb

t

CS L

ever

aged

Loa

n In

dex

MSC

I U.S

. REI

T In

dex

DJ-U

BS C

omm

odit

y In

dex

HFR

I FoF

Com

posi

te In

dex

Retu

rn (%

)

0.1

-1.6

1.8

-0.5 -1.0

2.3 3.91.1

3.6 4.3 3.6

-6.7

-1.2

ECONOMY After a relatively strong start for the year and positive returns in the first quarter of 2011, markets across the world turned around and came to a near stop. Stocks declined in May and June with wide-spread fears of slowdown in global economic growth. Sovereign debt crisis in Europe also helped the slowdown as Greece came very close to defaulting. While equity markets were down, bonds were on the rise, primarily influenced by U.S. Treasuries but also bond markets in Germany. Flight to quality within bond markets was evident. Commodities declined during the quarter and have driven emerging markets down as well, with some of the largest countries posting negative returns.

In the US, unemployment was on the rise in the latter part of the quarter. Housing markets remained stagnant and with high existing homes inventory and tight underwriting standards, there was little promise of change for the better.

US EQUITY When it was all said and done, second quarter of 2011 was relatively flat, with S&P and Russell large caps showing minimal to no gains. One year returns thus remain strong, carrying on successes from 2010, but also not losing what was gained in Q2 2011. The quarter started off strong with stocks rising in April due to strong earnings reports and still declining unemployment figures. However, the market turned around in latter part of the quarter in response to slowing economic growth. Sector performance was a volatile one. Energy and Financials had the largest declines while Healthcare and Utilities were the clear winners. Despite the strongest returns in the previous quarter, Energy stocks fell with a decline in the price of oil as well as sharply declining economic growth; even on global level. Pharmaceutical companies showed strong efforts in slashing their costs and thus pleased investors. Overall, the value was in growth - growth stocks seemed to protect better in a somewhat volatile quarter. Large caps outperformed small, but only by a slight margin.

0.0

20.0

40.0

60.0

80.0

-20.01

Quarter1

Year

Retu

rn (%

) 3.4

40.5

5.3

26.7

-4.6

52.8

-5.9

12.87.9

28.5

-0.7

38.1

-1.4

25.8

-0.9

45.3

2.1

39.0

6.1

23.9

S&P 500 Consumer Discretionary S&P 500 Consumer StaplesS&P 500 Energy S&P 500 FinancialsS&P 500 Health Care S&P 500 IndustrialsS&P 500 Information Technology S&P 500 MaterialsS&P 500 Telecommunications Services S&P 500 Utilities

0.0

15.0

30.0

45.0

60.0

-15.01

Quarter1

Year

Retu

rn (%

)

0.1

30.7

-0.7

39.4

-0.2

37.0

1.6

33.5

-1.5

27.9

0.8

45.5

-2.2

33.4

2.0

42.7

-2.2

31.7

S&P 500 S&P MidCap 400 S&P SmallCap 600S&P 500 Growth S&P 500 Value S&P MidCap 400 GrowthS&P MidCap 400 Value S&P SmallCap 600 Growth S&P SmallCap 600 Value

Quarterly Market Summary June 30, 2011

Copyright © 2011 Investment Metrics, LLC. All rights reserved.

6

Intl Equity Region PerformanceIntl Equity Indices Performance

Fixed Income Market Sector Performance

Source: Investment Metrics, LLC

Source: Investment Metrics, LLCSource: Investment Metrics, LLC

FIXED INCOME The second quarter of 2011 saw a rapid flight to quality within fixed income markets. Widespread fears regarding global economic slowdown as well as fears of defaults in Greece, Ireland, and Portugal led investors looking for higher quality to US Treasuries. The Federal Reserve ended the second round of quantitative easing program on June 30th, as planned. First quarter earnings data released in April was encouraging, however the declining US economy and strong supply caused the corporate spreads to widen 11 basis points during the quarter. Barclays Capital U.S. Aggregate rose a healthy 2.3% during the quarter, while the U.S. High Yield was the lowest contributor for the quarter.

0.0

5.0

10.0

15.0

20.0

0.01

Quarter1

Year

Retu

rn (%

)

2.33.9

2.4 2.21.4 2.32.5

6.2

2.33.8

1.83.4

1.1

15.6

3.1

10.5

4.0

11.8

Barclays Capital U.S. Aggregate Barclays Capital U.S. TreasuryBarclays Capital U.S. Agency Barclays Capital U.S. Credit IndexBarclays Capital U.S. MBS Barclays Capital U.S. ABSBarclays Capital U.S. High Yield Barclays Capital Global AggregateJPM EMBI Global (USD)

INTERNATIONAL EQUITY International developed markets managed to post positive returns during the second quarter despite numerous global factors leading to negative predictions. European markets saw a large divide grow between its major and peripheral countries, with Germany, UK, and France seeing stocks rise as their economies continued to expand, while Greece and Portugal remained in recession with Greece market sliding 18% after further debt crisis. Most Pacific markets fell due to the ongoing impact of the Japanese earthquake and tsunami disasters, but also due to concerns about global economic growth slowing down. In addition, it was confirmed that Japan had slipped back into recession as its GDP was reduced 0.9% during the first quarter. Emerging markets posted negative returns for the quarter with larger markets driving its performance down. As prices for most commodities declined, markets with large exposure to commodities, like Russia and Brazil, led the charge in the decline.

While the second quarter returns were marginally positive, over the one year period international equities remain strong with returns over 30% for majority of indices and regions, excluding MSCI Japan.

0.0

15.0

30.0

45.0

60.0

-15.01

Quarter1

Year

Retu

rn (%

)

1.8

30.9

1.0

36.8

2.3

31.7

1.3

30.1

-1.0

28.2

1.9

32.4

2.0

37.3

2.3

32.8

1.4

32.0

MSCI EAFE Index MSCI EAFE Small Cap MSCI EAFE Growth IndexMSCI EAFE Value MSCI Emerging Markets S&P EPAC BMIS&P EPAC SmallCap S&P EPAC BMI Growth S&P EPAC BMI Value

0.0

15.0

30.0

45.0

60.0

-15.01

Quarter1

Year

Retu

rn (%

)

0.2

13.2

-0.2

35.7

1.7

34.1

3.4

38.1

MSCI Japan MSCI Pacific ex Japan MSCI United Kingdom MSCI Europe ex U.K.

Quarterly Market Summary June 30, 2011

7

Client Type: Money Purchase Pension PlanTime Horizon: Greater than Five YearsExpected Return: 5% over CPIRisk Tolerances: Expected downside of -17.5% to -18.5% per year based on a statistical confidence level of 95% (1)

Asset Allocation Performance Benchmarks

Strategic Asset Investment Primary Peer GroupLower Limit Allocation Upper Limit Category Manager Index Universe

Domestic Equity Domestic Equity Large Cap 49.00% 52.00% 55.00% Balanced Boston Trust S&P 500 / BC Aggregate Core Equity

Boston Tr Eqty S&P 500 Core Equity Mid Cap Growth 4.00% 7.00% 10.00% Mid Cap Growth Munder MC Core Gr S&P 400 Growth Mid Cap Growth Small Cap Value 4.00% 7.00% 10.00% Small Cap Value ICM Sm Cap Value S&P 600 Small Cap Value

International Equity 12.00% 15.00% 18.00% International Equity Europacific R-4 MSCI EAFE International GrowthDodge & Cox Intl MSCI EAFE International Value

Domestic Fixed Income 1.00% 4.00% 7.00% Domestic Fixed Income Boston Tr Fixed Inc BC Aggregate Core BondPimco Total Ret. BC Aggregate Core Bond

High Yield 0.00% 3.00% 6.00% High Yield JP Morgan HY BC:HY Credit HY

Floating Rate Corporate Loans 4.00% 7.00% 10.00% Floating Rate Corporate Loans Eaton Vance Floating CSFB Leveraged Loan Loan Participation

INVESTMENT POLICY SUMMARY

Client Variables

Commodities 2.00% 5.00% 8.00% Commodities Pimco Comm RR DJ-UBS Comm N/A

Total Portfolio Strategic Benchmark: 52.00% 70% S&P 500 / 30% BC Aggregate7.00% S&P 400 Growth7.00% S&P 600

15.00% MSCI EAFE4.00% BC Aggregate3.00% BC:HY Credit 7.00% CSFB Leveraged Loan5.00% DJ-UBS Comm

Total Portfolio Secondary Benchmark: CPI + 5%

(1) There is a 5% probability that the 1 year modeled loss of -17.5% to -18.5% will be exceeded. Risk tolerances are based on 2010 capital markets assumptions. NOTE: The 1 year modeled loss will vary from year to year depending on future capital market assumptions.

8

Boulder Fire & PoliceAverage plan assets $78,915,362Estimated Investment, Recordkeeping and Administrative Costs 0.61%Estimated Total Plan Expenses 0.68%

Weighted average (bps)Employer Paid Employee Paid Total

Asset based fee retained by funds 53 -$ 415,985$ 415,985$ Revenue sharing paid to plan provider 9 -$ 70,589$ 70,589$ Per participant fee 0 -$ -$ -$ Administration/Recordkeeping fee 0 -$ -$ -$ Custodial/Trust fees 0 -$ -$ -$ Direct participant paid fees

Loan origination 0 -$ -$ -$ Loan maintenance 0 -$ -$ -$ QDRO 0 -$ -$ -$ Miscellaneous 0 -$ -$ -$

Rebate to plan 0 -$ (3,511)$ (3,511)$

Total Investment, Recordkeeping and Administrative Costs 61 -$ 486,574$ 483,063$

Third party plan paid feesInvestment Consultant 7 -$ 58,138$ 58,138$ Attorney 0 -$ -$ -$

Total Plan Expenses 68 -$ 541,202$ 537,691$

Fee review reflects activity for the following time period: 4/1/2010 - 3/31/2011

Benchmarking: The plan's estimated investment, recordkeeping and administrative costs of 0.61% as shown above, compare favorably to 401(k) Source data, a universe of 84 similarly sized 401(k) plans with an average investment, recordkeeping and administrative cost of 1.24%

Dollars ($)

Total Plan Expenses

Annual Fee Review

9

June 30, 2011

Allocation Differences

0.0% 10.0% 20.0%-10.0 %-20.0 %

Commodities

Floating Rate Corporate Loans

High Yield

Fixed Income

International Equity

Small Cap Equity

Mid Cap Equity

Large Cap Equity

-0.2 %

0.0%

0.0%

14.0%

-0.1 %

-0.1 %

0.0%

-13.6 %

March 31, 2011

Allocation Differences

0.0% 2.0% 4.0%-2.0 %-4.0 %

Commodities


High Yield

Fixed Income


Small Cap Equity

Mid Cap Equity

Large Cap Equity

0.3%

-0.1 %

0.0%

-3.0 %

-0.1 %

0.1%

0.2%

2.6%

June 30, 2011

Market Value($)

Allocation(%)

Target(%)

Large Cap Equity 32,818,500 38.42 52.00

Mid Cap Equity 6,017,510 7.04 7.00

Small Cap Equity 5,864,384 6.86 7.00

International Equity 12,750,360 14.93 15.00

Fixed Income 15,367,344 17.99 4.00

High Yield 2,550,436 2.99 3.00

Floating Rate Corporate Loans 5,956,925 6.97 7.00

Commodities 4,101,409 4.80 5.00

Total Fund 85,426,866 100.00 100.00

March 31, 2011

Market Value($)

Allocation(%)

Target(%)

Large Cap Equity 32,580,029 38.57 36.00

Mid Cap Equity 6,117,798 7.24 7.00

Small Cap Equity 5,965,902 7.06 7.00

International Equity 12,593,954 14.91 15.00

Fixed Income 14,392,394 17.04 20.00

High Yield 2,532,526 3.00 3.00

Floating Rate Corporate Loans 5,847,853 6.92 7.00

Commodities 4,444,422 5.26 5.00

Total Fund 84,474,880 100.00 100.00

Asset Allocation vs. Target Allocation

10

Allocation

MarketValue

($)%

Performance(%)

LastQuarter

YearTo Date

1Year

3Years

5Years

10Years

SinceInception

InceptionDate

Large Cap Equity

Boston Trust Equity - Boulder F&P 32,818,500 36.87 1.81 6.30 30.19 5.80 5.42 5.83 10.36 07/01/1990

S&P 500 0.10 6.02 30.69 3.34 2.94 2.72 8.67

Mid Cap Equity

Munder Mid Cap Core Growth 6,017,510 6.76 1.27 9.28 38.59 4.53 5.57 8.14 23.43 01/01/2010

S&P MidCap 400 Growth 0.77 10.69 45.54 8.76 8.51 7.38 27.83

Small Cap Equity

ICM Small Company 5,864,384 6.59 -1.41 4.25 32.39 6.10 4.61 8.53 3.19 01/01/2008

S&P SmallCap 600 Value -2.19 4.01 31.71 7.18 2.96 7.24 3.38


American Funds EuroPacific Gr 6,401,073 7.19 1.00 4.50 29.02 1.69 5.10 N/A 8.92 04/01/2004

MSCI EAFE Growth Index (Net) 2.11 4.38 31.25 -1.85 2.51 5.28 6.38

Dodge & Cox Int'l 6,349,287 7.13 0.46 3.00 31.37 1.34 3.43 9.72 -2.34 01/01/2008

MSCI EAFE Value Index (Net) 0.98 5.58 29.35 -1.74 0.36 5.96 -5.57

Fixed Income

Boston Trust Fixed Income - Boulder F&P 11,911,643 13.38 1.91 2.55 4.33 5.74 6.37 5.98 6.66 07/01/1990

Barclays Capital Aggregate 2.29 2.72 3.90 6.46 6.52 5.75 6.98

PIMCO Total Return; Inst 3,455,701 3.88 1.86 3.01 5.94 9.48 8.89 7.38 8.28 04/01/2008

Barclays Capital Aggregate 2.29 2.72 3.90 6.46 6.52 5.75 5.61

High Yield

JPMorgan High Yield Select 2,550,436 2.87 0.49 4.28 15.34 11.79 8.72 8.65 12.66 01/01/2010

Barclays Capital US Corp: High Yield 1.05 4.97 15.63 12.68 9.30 9.00 13.46

Table of ReturnsJune 30, 2011

11

Table of ReturnsJune 30, 2011

Allocation

MarketValue

($)%

Performance(%)

LastQuarter

YearTo Date

1Year

3Years

5Years

10Years

SinceInception

InceptionDate


Eaton Vance Floating Rate; I 5,956,925 6.69 0.42 2.75 9.06 5.24 3.99 4.05 20.04 04/01/2009

Credit Suisse Leveraged Loan Index 0.33 2.98 9.68 5.97 4.33 4.83 20.84

Commodities

PIMCO Commodity Real Return 4,101,409 4.61 -5.00 1.80 34.69 -8.48 3.88 N/A 3.41 01/01/2006

Dow Jones-UBS Commodity Index -6.73 -2.58 25.91 -11.87 -0.05 6.62 0.60

Balanced Account

Boston Trust Balanced - Boulder F&P 44,730,144 50.26 1.84 5.35 22.90 6.13 6.08 6.32 10.14 07/01/1990

70% S&P/30% BC Aggr 0.76 5.05 22.30 4.74 4.35 3.92 8.42

Stable Value

Vantage Trust Plus 3,577,808 4.02 1.00 2.01 4.16 4.40 4.74 4.77 4.63 07/01/2007

Ryan 3 Yr GIC Master 0.64 1.34 2.97 3.92 4.13 4.28 4.12

Total Fund

Boulder Fire & Police Total Fund 89,004,674 100.00 0.93 4.73 24.42 5.37 6.22 6.58 8.71 07/01/1990

Boulder Fire & Police Custom Benchmark 0.38 4.85 24.01 4.09 4.56 5.21 8.15

CPI + 5% 2.25 5.53 8.74 6.09 7.26 7.52 7.80 07/01/1990

12

Cumulative Performance Over Time

Risk and Return

Boulder Fire & Police Total Fund Boulder Fire & Police Custom Benchmark CPI + 5%

-100 %

0%

100%

200%

300%

400%

500%

9/90 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 9/09 9/10 6/11

4

6

8

10

12

14

Re

turn

(%

)

-5 0 5 10 15 20 25 30

Risk (Standard Deviation %)

Boulder Fire & Police Custom Benchmark

Boulder Fire & Police Total Fund

Ryan 3 Yr GIC Master

Dow Jones-UBS Commodity Index

Credit Suisse Leveraged Loan Index

Barclays Capital US Corp: High Yield

Barclays Capital Aggregate

MSCI EAFE (net)

S&P MidCap 400 Growth

S&P SmallCap 600

Total Portfolio Performance AnalysisAs of June 30,2011

13

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

28.0

Retu

rn

LastQuarter

1Year

3Years

5Years

7Years

10Years

¢ Boulder Fire & Police Total Fund 0.93 (N/A) 24.42 (N/A) 5.37 (N/A) 6.22 (N/A) 6.49 (N/A) 6.58 (N/A)

p Boulder Fire & Police Custom Benchmark 0.38 (N/A) 24.01 (N/A) 4.09 (N/A) 4.56 (N/A) 5.79 (N/A) 5.21 (N/A)

5th Percentile N/A N/A N/A N/A N/A N/A

1st Quartile N/A N/A N/A N/A N/A N/A

Median N/A N/A N/A N/A N/A N/A

3rd Quartile N/A N/A N/A N/A N/A N/A

95th Percentile N/A N/A N/A N/A N/A N/A

Plan Sponsor Peer Group AnalysisAll Public Plans (AUM < $100mm)

June 30, 2011

Parentheses contain percentile rankings.Calculation based on quarterly periodicity.

14

Occurrence Action

DailyWe review trades and reconcile accounts. Manager due diligence meetings both on and off-site are conducted.

Weekly

The Due Diligence Group meets to review managers and client portfolios. Special attention is reserved for managers with qualitative issues. Investment Committee meetings are conducted to discuss managers identified for review by the Due Diligence Group.

We conduct quantitative analysis to identify outlier managers both

ONGOING MONITORING

Innovest’s investment performance analysis is not simply the production of a quarterly performance report.

Our in-depth investment product analysis is extensive, continual and designed to reduce surprises.

MonthlyWe conduct quantitative analysis to identify outlier managers, both positive and negative, for comprehensive evaluation.

Quarterly

Custom reports are developed for each client. Each client’s account is reviewed for possible portfolio rebalancing. Client meetings are conducted to review portfolio performance, managers, and policy. Manager calls are made and portfolio attribution is conducted to help determine “why” performance happened.

Annually

We review the Due Diligence Questionnaire for every manager. Due diligence meetings are conducted and manager review documentation is created and distributed to clients. We conduct a formal Asset Allocation Study for every client and review their objectives and goals.

Innovest’s investment performance analysis is not simply the production of a quarterly performance report.

Our in-depth investment product analysis is extensive, continual and designed to reduce surprises.

15

CriteriaOrganization 4 3 4 4 4 5 4 3 5 3

People 4 3 5 4 4 5 5 2 4 3

Philosophy & Process 3 3 4 4 4 4 4 3 4 3

Style Consistency 4 3 4 3 4 3 4 3 4 3

Asset Base 4 3 2 3 3 3 4 3 3 3

Performance 4 3 4 4 3 4 4 3 3 4

Expenses 3 3 4 4 4 3 3 3 4 3

Overall 3 3 4 4 4 4 4 3 4 3

CostsTickerExp Ratio (Basis Points)Median Exp Ratio (Basis Points)Ratio of Exp to Median

No/Minimal ConcernsMinor ConcernsMajor Concerns

ICM Small Company Value

ICSCX89117

76.07%

Munder Mid Cap Core Growth

MGOYX112121

92.56%

Dodge & Cox International

DODFX65

11656.03%

American Funds EuroPacific

REREX86

11674.14%

PIMCO Total Return

PTTRX4652

88.46%

Eaton Vance Floating Rate

EIBLX87

15058.00%

4646

100.00%

JP Morgan High Yield Bond

OHYFX91100

91.00%

Boston Trust Balanced

SA-BTBal6485

75.29%

Legend For Overall Criteria

FUND ANALYSIS OVERVIEW

Boulder Fire & Police

Domestic Equity International Equity Domestic Fixed Income Balanced Commodities Cash

PIMCO Commodity Real Return Fund

PCRIX74103

71.84%

Vantage Trust Plus

CM-VTP

Major Concerns

Comments/IssuesBoston Trust BalancedBob Lincoln, Chief Strategist and Portfolio Manager for the Boston Trust balanced, large cap equity and fixed income portfolios, will begin his partial retirement at the end of 2010. As co‐relationship manager with Mark Cushing, Bob Lincoln has managed client specificguidelines and policies. Going forward, Cushing will be supported in his relationship management duties by tenured employee, Stephen Amyouny. It is encouraging that Bob Lincoln will continue to serve on Boston Trusts’ various committees and as a director of the board.We believe that Stephen Amyouny should be a capable successor to Lincoln in the role of co‐relationship manager.

American Funds EuroPcific GrowthOne potential concern that we are watching is the large asset base of American Funds EuroPacific. In the past we have liked EuroPacific's flexibility to add value through opportunistic, bottom‐up stock selection. However, the fund’s large asset base is likely to present somechallenges for the fund to build meaningful positions in smaller companies and opportunistically trade in less liquid markets.

16

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17

STRATEGY INFORMATION

ROLLING 3 YEAR PERCENTILE RANKING

PEER GROUP ANALYSIS - IM U.S. Balanced (SA+CF)

CALENDAR YEAR RETURNS AND PERCENTILE RANKINGS

RISK VS. RETURN (5 YEARS*)

*If less than 5 years, data is since account inception.

Firm and Management:Domenic Colasacco is a portfoliomanager and president of the Adviser.Mr. Colasacco is also the president ofBoston Trust & InvestmentManagement Company and has servedas its Chief Investment Officer since1980. Mr. Colasacco managesportfolios for individual and institutionalclients and also manages the BostonTrust Equity Fund. Mr. Colasacco is aholder of the Chartered FinancialAnalyst (CFA) designation and amember of the Boston SecurityAnalysts Society.

Investment Strategy:The strategy strives to provide long-term growth of capital through adiversified portfolio of stocks, bondsand money market investments. Theallocation among these assets isactively managed based both on theirrelative values and the changingeconomic outlook. By forecastingfinancial market returns across a widerange of possible economic scenarios,they vary the allocation in a mannerthat is designed to provide protectionagainst falling markets in unfavorableeconomic environments, while alsoproviding opportunity to participate inrising markets. The strategy providesbroad diversification across stockmarket sectors; individual equityselections focus on companies withsuperior financial track records.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Re

turn

(%

)

4.0 8.0 12.0 16.0 20.0


StandardDeviation

Return

¢ Boston Tr Bal - Boulder F&P 11.61 6.08

Å 70% S&P/30% BC Aggr 13.39 4.35

� Median 12.45 4.84

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Re

turn

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ Boston Tr Bal - Boulder F&P 1.84 (6) 5.35 (30) 22.90 (25) 6.13 (17) 6.08 (25) 5.62 (48) 6.32 (27)

Å 70% S&P/30% BC Aggr 0.76 (50) 5.05 (38) 22.30 (32) 4.74 (53) 4.35 (68) 4.87 (67) 3.92 (74)

Median 0.77 4.65 19.85 4.81 4.84 5.59 4.99

2010 2009 2008 2007 2006 2005 2004

Boston Tr Bal - Boulder F&P 14.13 17.53 -20.93 11.31 9.58 1.90 10.23

70% S&P/30% BC Aggr 12.92 (28) 20.44 (47) -26.03 (80) 6.06 (66) 12.27 (38) 4.24 (63) 8.95 (45)

IM U.S. Balanced (SA+CF) 11.30 19.99 -22.21 6.94 11.53 5.37 8.45

Boston Tr Bal - Boulder F&P 70% S&P/30% BC Aggr

0.0

25.0

50.0

75.0

100.0

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Boston Tr Bal - Boulder F&P 06/30/11

18



PEER GROUP ANALYSIS - IM U.S. Large Cap Core Equity (SA+CF)





Investment Strategy:The portfolio consists of stocks from allmarket capitalizations; small, mediumand large. The portfolio is constructedwith a bottom up approach to securityselection, however, macro themes areconsidered in deciding which sectorslook most attractive. Each potentialholding is put through a number ofscreens which consider earningsgrowth and relative valuation.

-2.0

0.0

2.0

4.0

6.0

8.0

Re

turn

(%

)

5.0 10.0 15.0 20.0 25.0


StandardDeviation

Return

¢ Boston TrEq - Boulder F&P 17.02 5.42

Å S&P 500 19.20 2.94

� Median 18.89 3.79

-10.0

0.0

10.0

20.0

30.0

40.0

Re

turn

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ Boston TrEq - Boulder F&P 1.81 (20) 6.30 (57) 30.19 (64) 5.80 (15) 5.42 (20) 5.45 (55) 5.83 (14)

Å S&P 500 0.10 (61) 6.02 (62) 30.69 (57) 3.34 (64) 2.94 (75) 4.22 (88) 2.72 (89)

Median 0.47 6.90 31.21 3.94 3.79 5.54 3.93

2010 2009 2008 2007 2006 2005 2004

Boston TrEq - Boulder F&P 16.91 (25) 24.19 (63) -30.73 (17) 11.81 (18) 10.99 (86) 1.89 (95) 13.07 (39)

IM U.S. Large Cap Core Equity (SA+CF) 14.85 26.14 -36.06 7.22 15.51 7.32 11.86

S&P 500 15.06 26.46 -37.00 5.49 15.79 4.91 10.88

Boston TrEq - Boulder F&P S&P 500

0.0

25.0

50.0

75.0

100.0

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Boston TrEq - Boulder F&P 06/30/11

19

TOP TEN HOLDINGS PORTFOLIO CHARACTERISTICS

DISTRIBUTION OF MARKET CAP SECTOR DISTRIBUTION

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($) 75,590,100,667 85,197,328,600

Median Mkt. Cap ($) 32,987,185,000 11,502,160,000

Price/Earnings ratio 14.90 14.73

Price/Book ratio 3.10 2.52

5 Yr. EPS Growth Rate (%) 0.00 0.00

Current Yield (%) 2.11 2.45

Beta (5 Years, Quarterly) 0.89 1.00

Number of Stocks 64 500

PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

EXXON MOBIL CORPORATION 4.14 3.34 0.80 -2.72

CHEVRONTEXACO CORPORATION 2.48 1.72 0.76 -3.61

SCHLUMBERGER LIMITED 2.31 0.98 1.33 -7.09

NIKE INC. 2.29 0.28 2.01 19.27

C.R. BARD INC 2.26 0.08 2.18 10.75

ACCENTURE PLC 2.23 0.00 2.23 10.78

T. ROWE PRICE GROUP, INC. 2.22 0.13 2.09 -8.69

INT'L BUSINESS MACHS 2.18 1.73 0.45 5.67

CONOCOPHILLIPS 2.10 0.88 1.22 -5.00

PRECISION CASTPARTS 2.09 0.20 1.89 11.89

% of Portfolio 24.30 9.34

S&P 500

Boston Trust Equity - Composite

0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0 24.0

Utilities

Telecommunications

Other

Basic Materials

Financials

Consumer Services

Health Care

Consumer Goods

Technology

Oil & Gas

Industrials

3.6

3.0

0.1

3.5

15.5

11.9

11.1

10.7

16.4

12.2

12.1

0.0

0.0

0.0

3.4

10.8

11.5

12.2

12.8

13.7

14.7

20.7

Boston Trust Equity - Composite S&P 500

0.0

4.0

8.0

12.0

16.0

20.0

24.0

28.0

32.0

36.0

>100 Bil 75 Bil - 100 Bil

25 Bil - 75 Bil

15 Bil - 25 Bil

2 Bil - 15 Bil

0 - 2 Bil

33.8

6.0

28.2

12.0

19.8

0.2

27.5

3.9

30.4

14.7

23.5

0.0

Boston Trust Equity - Composite 06/30/11

20

PERFORMANCE - 1 Quarter TOTAL ATTRIBUTION - 1 Quarter

ACTIVE RETURN - 1 Quarter

0.0 0.2 0.4 0.6 0.8-0.2-0.4

Utilities

Telecommunications

Technology

Oil & Gas

Industrials

Health Care

Financials

Consumer Services

Consumer Goods

Basic Materials

-0.2

-0.1

0.3

-0.3

0.7

-0.2

0.6

0.4

0.6

0.4

S&P 500


0.0 3.0 6.0 9.0 12.0 15.0-3.0-6.0

Utilities

Telecommunications

Technology

Oil & Gas

Industrials

Health Care

Financials

Consumer Services

Consumer Goods

Basic Materials

6.0

1.8

-2.1

-4.5

-0.4

7.7

-5.4

3.9

4.6

-2.3

0.0

0.0

-0.4

-5.3

2.8

4.9

-5.4

7.1

8.9

11.3

Buy-and-Hold Portfolio 1.85

Portfolio Trading -0.28

Actual Return 1.57

Benchmark Return 0.10

Actual Active Return 1.47

Stock Selection 1.45

Sector Selection 0.49

Interaction 0.34

Total Selection 2.29


Benchmark Trading 0.54

Total Trading 0.26

Buy & Hold Active Return 2.54


21

PERFORMANCE - 3 Years TOTAL ATTRIBUTION - 3 Years

ACTIVE RETURN - 3 Years

0.0 0.5 1.0 1.5-0.5-1.0-1.5

Utilities

Telecommunications

Technology

Oil & Gas

Industrials

Health Care

Financials

Consumer Services

Consumer Goods

Basic Materials

0.0

0.0

-1.1

0.1

1.3

-0.4

1.3

-0.2

0.2

1.2

S&P 500


0.0 20.0 40.0-20.0-40.0-60.0

Utilities

Telecommunications

Technology

Oil & Gas

Industrials

Health Care

Financials

Consumer Services

Consumer Goods

Basic Materials

-1.5

4.2

6.8

-2.5

5.3

6.7

-6.4

10.5

10.2

1.9

-53.7

-3.4

0.1

-0.7

11.3

2.7

-0.7

8.0

11.0

28.3

Buy-and-Hold Portfolio 5.87


Actual Return 5.12

Benchmark Return 3.34

Actual Active Return 1.78

Stock Selection 0.55

Sector Selection 1.39

Interaction 0.70

Total Selection 2.64


Benchmark Trading 0.11

Total Trading -0.64

Buy & Hold Active Return 2.00


22

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23



PEER GROUP ANALYSIS - IM U.S. Fixed Income (SA+CF)





Investment Strategy:Boston Trust's approach to fixedincome investing combines top downeconomic scenario forecasts withbottom up fundamental research. Usingmacroeconomic-based quantitativetools, the investment team forecastsinterest rate changes for a range ofpossible economic outcomes. Theseforecasts contribute to portfoliostrategies with respect to interest ratesand the yield curve. In selectingindividual securities, Boston Trustapplies long-held standards for superiorfinancial quality, appropriate risk, anddiversification.

-15.0

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-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

Re

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(%

)

-5.0 0.0 5.0 10.0 15.0 20.0


StandardDeviation

Return

¢ Boston Tr FI - Boulder F&P 2.71 6.37

Å Barclays Capital Agg 3.37 6.52

� Median 4.06 6.87

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

20.0

Re

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LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ Boston Tr FI - Boulder F&P 1.91 (57) 2.55 (71) 4.33 (60) 5.74 (73) 6.37 (64) 5.36 (67) 5.98 (53)

Å Barclays Capital Agg 2.29 (28) 2.72 (63) 3.90 (70) 6.46 (63) 6.52 (59) 5.48 (62) 5.75 (63)

Median 2.02 3.00 4.84 7.07 6.87 5.82 6.03

2010 2009 2008 2007 2006 2005 2004

Boston Tr FI - Boulder F&P 6.55 (63) 4.93 (84) 5.33 (23) 8.43 (10) 3.71 (91) 2.17 (77) 5.37 (29)

IM U.S. Fixed Income (SA+CF) 7.37 10.32 1.32 6.24 4.72 2.73 4.44

Barclays Capital Agg 6.54 5.93 5.24 6.97 4.34 2.43 4.34

Boston Tr FI - Boulder F&P Barclays Capital Agg

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Boston Tr FI - Boulder F&P 06/30/11

24

TOP TEN HOLDINGS

PORTFOLIO CHARACTERISTICS vs. Barclays Capital Aggregate

CREDIT QUALITY DISTRIBUTION vs. Barclays Capital Aggregate

SECTOR DISTRIBUTION vs. Barclays Capital Aggregate

MATURITY DISTRIBUTION vs. Barclays Capital Aggregate

FED HOME LN BKS 20.7% AgenciesCASH 17.4% CashTREASURY INFL IDX 15.1% TreasuryFED HOME LN BKS 9.9% AgenciesFED HOME LN BKS 9.4% AgenciesSBC COMMUNICATIONS 9.0% CreditDEERE JOHN CAP CORP 8.9% CreditGNMA POOL #569359 5.6% MBSFED HOME LN MTG 4.0% Agencies Boston Trust Fixed Income - Boulder F&P Barclays Capital Aggregate

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Cash

US T

r easu

ries

A genci

es

MBS

C redi

t

0.0

32.9

11.5

35.8

19.8

13.6 13.6

55.8

4.2

12.8

Portfolio Benchmark

Portfolio Duration 4.30 5.25

Avg. Maturity 6.10 7.48

Avg. Quality AA+ AA1/AA2

Yield To Maturity (%) 2.10 2.75

Holdings Count 21 7,886

Boston Trust Fixed Income - Boulder F&P Barclays Capital Aggregate

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

A AA

AA A

B BB

76.5

4.9

10.0 8.6

85.2

0.0

8.5 6.3

Boston Trust Fixed Income - Boulder F&P Barclays Capital Aggregate

0.0

10.0

20.0

30.0

40.0

50.0

60.0

0 to 3

Yrs

3 to 5

Yrs

5 to

10 Y

rs

10 to

20 Y

rs

23.1

17.5

46.2

13.2

36.4

18.7

33.3

11.6

Boston Trust Fixed Income - Boulder F&P 06/30/11

25

FUND INFORMATION


PEER GROUP ANALYSIS - IM U.S. Mid Cap Growth Equity (MF)



*If less than 5 years, data is since inception of fund share class.

Firm and Management:Tony Dong has been the lead managerhere since February 2001. He's workedat Munder since 1988 and managedlarge-cap, growth-at-a-reasonable pricestrategies before taking over this fund.He's backed here by four comanagers:Andy Mui, Brian Matuszak, GeorgeSanders, and Geoffrey Wilson.

Investment Strategy:The Munder team seek companies thattrade cheaply relative to their growthprospects, using a broad range ofvaluation measures. They keep theFund's sector weightings within 3percentage points of those of the fund'sbenchmark, the S&P Midcap 400 Index.They'll typically hold 70-100 stocks andcap position sizes at 3%. And they'rerelatively patient investors; portfolioturnover has averaged around 50%.

-18.0

-15.0

-12.0

-9.0

-6.0

-3.0

0.0

3.0

6.0

9.0

12.0

Re

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(%

)

15.0 18.0 21.0 24.0 27.0


StandardDeviation

Return

¢ Munder MC Core Gr 19.63 5.57

Å S&P MidCap 400 Growth 20.93 8.51

� Median 20.96 5.91

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Re

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LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ Munder MC Core Gr 1.27 (31) 9.28 (41) 38.59 (69) 4.53 (61) 5.57 (57) 8.13 (34) 8.14 (7)

Å S&P MidCap 400 Growth 0.77 (40) 10.69 (20) 45.54 (20) 8.76 (21) 8.51 (14) 9.42 (13) 7.38 (16)

Median 0.28 8.70 41.77 5.83 5.91 7.31 4.96

2010 2009 2008 2007 2006 2005 2004

Munder MC Core Gr 25.48 (61) 32.80 (73) -43.45 (42) 20.97 (29) 11.82 (23) 13.11 (22) 22.30 (1)

S&P MidCap 400 Growth 30.57 (16) 41.08 (48) -37.61 (7) 13.50 (59) 5.80 (69) 13.58 (18) 14.01 (44)

IM U.S. Mid Cap Growth Equity (MF) 26.88 40.73 -44.60 15.76 7.72 10.67 12.96

Munder MC Core Gr S&P MidCap 400 Growth

0.0

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Munder MC Core Gr 06/30/11

26

TOP 10 HOLDINGS AS OF 06/30/11

STYLE MAP (07/31/98 - 06/30/11)

SECTOR ALLOCATION AS OF 06/30/11ASSET ALLOCATION AS OF 06/30/11

PORTFOLIO CHARACTERISTICS AS OF 06/30/11

UP/DOWN CAPTURE (07/01/06 - 06/30/11)

Total Securities 84

Avg. Market Cap $8,121 Million

P/E 25.33

P/B 4.04

Div. Yield 1.75 %

Annual EPS 39.45

5Yr EPS 16.98

3Yr EPS Growth 13.51

Affiliated Managers Group Inc ORD 2.15 %

Gentex Corp ORD 2.00 %

MACERICH REIT 1.98 %

Cognizant Technology Solutions Corp ORD 1.87 %

BorgWarner Inc ORD 1.87 %

Skyworks Solutions Inc ORD 1.85 %

TD Ameritrade Holding Corp ORD 1.82 %

Herbalife Ltd ORD 1.78 %

Kansas City Sthn ORD 1.77 %

Mettler-Toledo ORD 1.76 %

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

Convertibles

Fixed Income

Cash

Other

Equities

0.0%

0.0%

0.4%

5.9%

93.7%

0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0%

Telecommunications

Basic Materials

Utilities

Oil & Gas

Health Care

Consumer Services

Financials

Technology

Consumer Goods

Industrials

2.1%

3.0%

4.5%

6.9%

8.4%

10.0%

13.7%

14.2%

15.1%

16.0%

Munder MC Core Gr

88.0

92.0

96.0

100.0

Up

Mark

et

Cap

ture

Rati

o (

%)

97.0 98.0 99.0 100.0 101.0Down Market Capture Ratio (%)Style History Jun-2011

Average Style Exposure

Cap

italizati

on

Manager Style

Large Cap Growth

Small Cap GrowthSmall Cap Value

Large Cap Value

Munder MC Core Gr 06/30/11

27

FUND INFORMATION


PEER GROUP ANALYSIS - IM U.S. Small Cap Value Equity (MF)




Firm and Management:ICM's Small Cap Value effort began in1989, and today Bill Heaphy, ChiefInvestment Officer, and Sim Wootenserve as co-portfolio managers of theICM Small Company Portfolio. Bothhave research responsibilities and Billserves as Director of Research for thesmall cap team. Gary Merwitz, RobJacapraro, Josh Overholt and MattFleming are analysts on the small capteam.

Investment Strategy:Management starts with a universe ofstocks with market caps of around $1billion and narrows the list throughscreens and company analysis. Theteam favors well-managed companieswith good growth prospects that aretrading at attractive valuations. It tendsto sell when valuations get too high orwhen the company doesn't meetexpectations.

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Re

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(%

)

6.0 12.0 18.0 24.0 30.0 36.0


StandardDeviation

Return

¢ ICM Small Company 24.30 4.61

Å S&P SC 600 Value 22.85 2.96

� Median 22.91 3.39

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Re

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LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ ICM Small Company -1.41 (23) 4.25 (53) 32.39 (52) 6.10 (83) 4.61 (30) 7.15 (21) 8.53 (35)

Å S&P SC 600 Value -2.19 (45) 4.01 (59) 31.71 (59) 7.18 (68) 2.96 (58) 6.10 (49) 7.24 (72)

Median -2.41 4.52 32.49 8.48 3.39 6.07 8.14

2010 2009 2008 2007 2006 2005 2004

ICM Small Company 22.73 (75) 34.46 (35) -35.11 (66) 3.35 (6) 19.22 (25) 5.22 (64) 20.70 (45)

S&P SmallCap 600 Value 24.72 (62) 22.85 (83) -29.51 (22) -5.54 (44) 19.57 (22) 6.18 (52) 23.23 (24)

IM U.S. Small Cap Value Equity (MF) 25.65 30.25 -32.78 -6.20 16.35 6.27 20.08

ICM Small Company S&P SC 600 Value

0.0

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ICM Small Company 06/30/11

28

TOP 10 HOLDINGS AS OF 06/30/11

STYLE MAP (05/31/89 - 06/30/11)

SECTOR ALLOCATION AS OF 06/30/11ASSET ALLOCATION AS OF 06/30/11

PORTFOLIO CHARACTERISTICS AS OF 06/30/11

UP/DOWN CAPTURE (07/01/06 - 06/30/11)

Total Securities 148


P/E 21.91

P/B 2.25

Div. Yield 2.04 %

Annual EPS 39.77

5Yr EPS 5.26

3Yr EPS Growth 2.21

Measurement Specialties Inc ORD 1.92 %

Aptargroup Inc ORD 1.82 %

Sirona Dental Systems Inc ORD 1.71 %

Bio Rad Laboratories Inc ORD 1.58 %

Littelfuse Inc ORD 1.43 %

Insight Enterprises Inc ORD 1.35 %

Kaman ORD 1.35 %

Men's Wearhouse Inc ORD 1.29 %

Regal Beloit Corp ORD 1.28 %

Carrizo O & G ORD 1.24 %

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

Convertibles

Fixed Income

Cash

Other

Equities

0.0%

0.0%

0.7%

6.4%

92.9%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Utilities

Consumer Goods

Oil & Gas

Health Care

Basic Materials

Technology

Consumer Services

Financials

Industrials

2.5%

3.9%

5.0%

6.0%

6.0%

11.0%

11.5%

15.9%

31.2%

ICM Small Company

99.0

102.0

105.0

108.0

Up

Mark

et

Cap

ture

Rati

o (

%)

99.6 100.0 100.4 100.8 101.2 101.6 102.0 102.4Down Market Capture Ratio (%)Style History Jun-2011


Cap

italizati

on

Manager Style

Large Cap Growth

Small Cap GrowthSmall Cap Value

Large Cap Value

ICM Small Company 06/30/11

29

FUND INFORMATION


PEER GROUP ANALYSIS - IM International Large Cap Growth Equity (MF)




Firm and Management:Like all American Funds, this offeringboasts many experienced managers,most of whom have been with thecompany for more than a decade. Eachmanager runs his or her portion ofassets independently of the others. Aportion of the portfolio (less than 25%of assets) is run by the firm's analyststaff.

Investment Strategy:This Fund's managers are focused onyield. They buy a lot of blue-chip stockswith healthy dividends and hold themfor the long term. They usually try topick up stocks on the cheap, so theportfolio's price multiples are below thegroup norm. The managers use cash tomoderate volatility, typically keeping theFund's stake in the double digits. TheFund usually has a stake in emerging-markets companies and will sometimeshold preferred stock and convertibles

debt.

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Re

turn

(%

)

15.0 18.0 21.0 24.0 27.0


StandardDeviation

Return

¢ American Funds EuPc 20.19 5.12

Å MSCI EAFE Growth Idx 20.31 2.51

� Median 21.54 3.55

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Re

turn

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ American Funds EuPc 0.98 (60) 4.50 (49) 29.03 (72) 1.71 (21) 5.12 (19) 9.57 (13) 7.95 (14)

Å MSCI EAFE Growth Idx 2.11 (33) 4.38 (51) 31.25 (44) -1.85 (74) 2.51 (67) 6.83 (64) 5.28 (64)

Median 1.18 4.46 30.68 0.00 3.55 7.69 5.79

2010 2009 2008 2007 2006 2005 2004

American Funds EuPc 9.40 (78) 39.10 (20) -40.53 (18) 18.96 (30) 21.87 (69) 21.12 (4) 19.69 (9)

MSCI EAFE Growth Index (Net) 12.25 (57) 29.36 (74) -42.70 (48) 16.45 (49) 22.33 (64) 13.28 (75) 16.12 (51)

IM International Large Cap Growth Equity (MF) 12.81 34.45 -42.86 16.18 23.16 15.63 16.19

American Funds EuPc MSCI EAFE Growth Idx

0.0

25.0

50.0

75.0

100.0

Re

turn

Ra

nk

ing

9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11

American Funds EuPc 06/30/11

30

TOP 10 HOLDINGS AS OF 06/30/11PORTFOLIO CHARACTERISTICS AS OF 06/30/11

STYLE MAP (01/31/99 - 06/30/11)

SECTOR ALLOCATION AS OF 06/30/11

ASSET ALLOCATION AS OF 06/30/11

REGION ALLOCATION AS OF 06/30/11

TOP 5 COUNTRIES AS OF 06/30/11

UP/DOWN CAPTURE (07/01/06 - 06/30/11)

0.0% 30.0% 60.0% 90.0% 120.0%

Convertibles

Other

Cash

Fixed Income

Equities

0.0%

0.0%

1.2%

5.9%

92.9%



P/E 19.35

P/B 3.31

Div. Yield 2.56 %

Annual EPS 35.49

5Yr EPS 9.98

3Yr EPS Growth 4.16

Novo Nordisk A/S ORD 2.60 %

America Movil SAB de CV DR 2.58 %

SOFTBANK ORD 1.83 %

Bayer AG ORD 1.70 %

Novartis ORD 1.65 %

Daimler AG ORD 1.58 %

Samsung Electronics Co Ltd ORD 1.38 %

Nestle SA ORD 1.38 %

HTC Corp ORD 1.24 %

Anheuser Busch Inbev SA ORD 1.10 %

Japan 10.89 %

United Kingdom 8.28 %

France 8.22 %

Germany 8.09 %

Switzerland 7.23 %

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Emerging Latin America

Emg. MidEast, Africa, Europe

Other

Emerging Asia

North America

Pacific Basin

Europe

1.6%

4.3%

6.7%

11.4%

12.8%

14.8%

47.6%

0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% 21.0% 24.0%

Non Classified Equity

Consumer Services

Oil & Gas

Technology

Health Care

Basic Materials

Telecommunications

Industrials

Consumer Goods

Financials

3.1%

4.9%

6.5%

6.8%

7.8%

7.9%

8.8%

9.9%

15.8%

19.5%

American Funds EuPc

100.0

102.0

104.0

Up

Mark

et

Cap

ture

Rati

o (

%)

94.0 95.0 96.0 97.0 98.0 99.0 100.0 101.0Down Market Capture Ratio (%)Style History Jun-2011


Cap

italizati

on

Manager Style

MSCI EAFE Growth Index

MSCI Emerging Markets IndexMSCI EAFE Small Cap

MSCI EAFE Value Index

American Funds EuPc 06/30/11

31

FUND INFORMATION


PEER GROUP ANALYSIS - IM International Large Cap Value Equity (MF)




Firm and ManagementThis fund is run by the Dodge & CoxInternational Investment PolicyCommittee. The members of this nine-person team have been at Dodge &Cox for an average of 19 years.Several members also serve on thecommittee that runs large-value AnalystPick Dodge & Cox Stock. In addition, allthe firm's analysts are involved to acertain extent with this fund becausethey cover sectors on a global basis.

Investment StrategyThis Fund's management team investsin stocks that it considers undervaluedon a range of variables. It favorscompanies with good management,dominant competitive positions, andgood growth potential. Becausemanagement takes such a long-termview, turnover is generally low.Management will hedge part of theFund's currency exposure at times,though it's not a common tactic. It usesfair-value pricing whenever it thinks

such an approach is warranted.

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

Re

turn

(%

)

18.0 20.0 22.0 24.0 26.0 28.0


StandardDeviation

Return

¢ Dodge & Cox Intl 24.51 3.43

Å MSCI EAFE Value Idx 22.78 0.36

� Median 22.88 0.40

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Re

turn

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ Dodge & Cox Intl 0.46 (66) 3.00 (79) 31.37 (47) 1.34 (1) 3.43 (1) 9.18 (1) 9.72 (1)

Å MSCI EAFE Value Idx 0.98 (56) 5.58 (44) 29.35 (62) -1.74 (32) 0.36 (51) 5.96 (34) 5.96 (38)

Median 1.13 5.28 31.08 -2.91 0.40 5.58 5.53

2010 2009 2008 2007 2006 2005 2004

Dodge & Cox Intl 13.69 (1) 47.46 (1) -46.69 (61) 11.71 (13) 28.01 (37) 16.75 (10) 32.46 (1)

MSCI EAFE Value Idx 3.25 (75) 34.23 (26) -44.09 (41) 5.95 (87) 30.38 (24) 13.80 (50) 24.33 (24)

IM International Large Cap Value Equity (MF) 4.97 28.60 -45.93 8.79 26.88 13.73 21.70

Dodge & Cox Intl MSCI EAFE Value Idx

0.0

25.0

50.0

75.0

100.0

Re

turn

Ra

nk

ing

9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11

Dodge & Cox Intl 06/30/11

32

TOP 10 HOLDINGS AS OF 06/30/11PORTFOLIO CHARACTERISTICS AS OF 06/30/11

STYLE MAP (06/30/01 - 06/30/11)

SECTOR ALLOCATION AS OF 06/30/11


REGION ALLOCATION AS OF 06/30/11

TOP 5 COUNTRIES AS OF 06/30/11

UP/DOWN CAPTURE (07/01/06 - 06/30/11)

0.0% 30.0% 60.0% 90.0% 120.0%

Convertibles

Fixed Income

Other

Cash

Equities

0.0%

0.0%

0.0%

1.5%

98.5%



P/E 18.45

P/B 2.43

Div. Yield 2.86 %

Annual EPS 40.25

5Yr EPS 1.30

3Yr EPS Growth -8.08

Naspers Ltd ORD 3.35 %

Vodafone Group PLC DR 3.13 %

Bayer AG ORD 2.68 %

ROCHE HOLDING G PAR 2.66 %

Sanofi SA ORD 2.55 %

Mitsubishi Elec ORD 2.47 %

GlaxoSmithKline DR 2.40 %

Kon Philips ORD 2.35 %

Novartis DR 2.35 %

Schlumberger NV ORD 2.29 %

Japan 13.41 %

United Kingdom 12.71 %

Switzerland 10.58 %

France 9.01 %

Germany 8.18 %

0.0% 11.0% 22.0% 33.0% 44.0% 55.0% 66.0%

Emerging Latin America

Emerging Asia

Other

North America

Emg. MidEast, Africa, Europe

Pacific Basin

Europe

2.8%

3.3%

5.1%

5.8%

10.7%

14.9%

57.5%

0.0% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0%

Utilities

Basic Materials

Oil & Gas

Consumer Services

Telecommunications

Technology

Health Care

Industrials

Consumer Goods

Financials

1.2%

7.0%

7.1%

7.2%

9.7%

9.8%

10.9%

11.2%

12.1%

21.7%

Dodge & Cox Intl

99.0

102.0

105.0

108.0

Up

Mark

et

Cap

ture

Rati

o (

%)

96.0 97.0 98.0 99.0 100.0 101.0Down Market Capture Ratio (%)Style History Jun-2011


Cap

italizati

on

Manager Style

MSCI EAFE Growth Index

MSCI Emerging Markets IndexMSCI EAFE Small Cap

MSCI EAFE Value Index

Dodge & Cox Intl 06/30/11

33

FUND INFORMATION


PEER GROUP ANALYSIS - IM U.S. Broad Market Core Fixed Income (MF)




Firm and Management:Bill Gross is a founder and ManagingDirector of PIMCO and has beenassociated with PIMCO since 1973. AsChief Investment Officer of PIMCO heoversees the management of over$445 billion of fixed income securities.He is the author of numerous articleson the bond market and has frequentlyappeared in national publications andmedia. Morningstar named Mr. Gross,and his investment team, Morningstar'sFixed Income Manager of the Year for1998 and for 2000, making the firstperson to ever receive this award morethan once from Morningstar. He hasbeen in investment management since1970 and holds a bachelor's degreefrom Duke University and an MBA fromthe UCLA Graduate School of

Business.

Investment Strategy:The manager couples PIMCO's long-term macroeconomic outlook with itstake on short-term cyclical factors todetermine this fund's sector weightingsand duration (a measure of interest-ratesensitivity). Although the strategy willfocus heavily on certain sectors, hedoesn't make huge interest-rate betsagainst the Barclays Capital AggregateIndex. (Such plays are typically plus orminus 20% of the index's duration.)However, the fund will occasionallyinvest in nonindex sectors of themarket, such as high-yield, developed-markets international, and emerging-

markets debt.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Re

turn

(%

)

2.0 4.0 6.0 8.0


StandardDeviation

Return

¢ PIMCO Tot Rtn Inst 4.17 8.89

Å BC Aggregate Idx 3.59 6.52

� Median 4.43 6.31

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

Re

turn

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ PIMCO Tot Rtn Inst 1.86 (55) 3.01 (38) 5.94 (29) 9.48 (7) 8.89 (2) 7.27 (2) 7.38 (2)

Å BC Aggregate Idx 2.29 (13) 2.72 (57) 3.90 (79) 6.46 (64) 6.52 (41) 5.48 (39) 5.75 (32)

Median 1.92 2.84 5.09 6.94 6.31 5.20 5.39

2010 2009 2008 2007 2006 2005 2004

PIMCO Tot Rtn Inst 8.84 (26) 13.87 (45) 4.82 (13) 9.08 (1) 3.99 (46) 2.88 (4) 5.14 (12)

Barclays Capital Aggregate 6.54 (77) 5.93 (93) 5.24 (9) 6.97 (11) 4.34 (30) 2.43 (16) 4.34 (33)

IM U.S. Broad Market Core Fixed Income (MF) 7.53 13.10 -3.44 5.31 3.93 1.83 4.02

PIMCO Tot Rtn Inst BC Aggregate Idx

0.0

25.0

50.0

75.0

100.0

Re

turn

Ra

nk

ing

9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11

PIMCO Tot Rtn Inst 06/30/11

34

TOP SECTOR ALLOCATIONS AS OF 06/30/11PORTFOLIO CHARACTERISTICS AS OF 06/30/11

STYLE MAP (06/30/87 - 06/30/11)

QUALITY ALLOCATION AS OF 06/30/11


MATURITY DISTRIBUTION AS OF 06/30/11

3 YR ROLLING CORRELATION vs. Barclays Capital Aggregate

0.0% 50.0% 100.0%

Cash

Equities

Convertibles

Other

Fixed Income

-7.0 %

0.0%

0.0%

4.0%

103.0%

Avg. Coupon 3.75 %

Nominal Maturity 4.71 Years

Effective Maturity 0.00 Years

Duration 3.60 Years

SEC 30 Day Yield 2.44

Avg. Credit Quality N/A

GNMA and Other Mtg Backed 45.00 %

Corporate Notes/Bonds 23.00 %

Fgn. Currency Denominated Bonds 13.00 %

Government Agency Securities 12.00 %

Treasury Notes/Bonds 10.00 %

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Other

>30Yrs

20-30Yrs

10-20Yrs

5-10Yrs

3-5Yrs

1-3Yrs

<1Yr

4.0%

0.0%

0.9%

0.9%

20.2%

19.3%

23.7%

31.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

CCC, CC AND C rated

Equities/Other

BB AND B Rated

AA Rated

BBB Rated

Foreign Securities

Government/AAA

0.8%

4.0%

8.4%

18.5%

10.9%

13.0%

44.3%

PIMCO Tot Rtn Inst

0.7

0.8

0.9

1.0

9/06 3/07 9/07 3/08 9/08 3/09 9/09 3/10 9/10 6/11Style History Jun-2011


Cap

italizati

on

Manager Style

Barclays Capital Long Term Govt Bond

Barclays Capital Long U.S. CreditBarclays Capital U.S. Credit 1-5 Year Index

Barclays Capital 1-5 Yr Gov

PIMCO Tot Rtn Inst 06/30/11

35

FUND INFORMATION


PEER GROUP ANALYSIS - IM U.S. High Yield Bonds (MF)




Firm and Management:William J. Morgan joined J.P. Morgan in2005. He is the high yield team leaderand the portfolio manager for allaccounts in the high yield, aggressiveincome high yield, and insurance asset"BB' default rating styles. He is amember of the High Yield ManagementReview Committee and is alsoresponsible for managing the HighYield Team's credit analysts. Prior tojoining the firm, he held the same roleat Banc One High Yield Partners, LLCand Pacholder Associates, Inc.

Investment Style:The Fund seeks a high level of currentincome by investing primarily in adiversified portfolio of debt securitiesthat are rated below investment gradeor unrated. Capital appreciation is asecondary objective.

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Re

turn

(%

)

3.0 6.0 9.0 12.0 15.0 18.0


StandardDeviation

Return

¢ JPMorgan High Yield 10.86 8.72

Å BC US Corp: High Yield 13.56 9.30

� Median 11.91 7.15

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Re

turn

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ JPMorgan High Yield 0.49 (55) 4.28 (42) 15.34 (33) 11.79 (10) 8.72 (10) 8.55 (9) 8.65 (12)

Å BC US Corp: High Yield 1.05 (12) 4.97 (13) 15.63 (27) 12.68 (6) 9.30 (5) 8.87 (5) 9.00 (7)

Median 0.54 4.14 14.54 9.34 7.15 7.18 7.30

2010 2009 2008 2007 2006 2005 2004

JPMorgan High Yield 14.67 (29) 48.45 (39) -22.54 (28) 2.18 (36) 12.80 (6) 3.04 (41) 11.31 (18)

Barclays Capital US Corp: High Yield 15.12 (23) 58.21 (10) -26.16 (56) 1.87 (45) 11.86 (11) 2.74 (50) 11.14 (20)

IM U.S. High Yield Bonds (MF) 13.59 46.28 -25.29 1.72 9.75 2.71 9.72

JPMorgan High Yield BC US Corp: High Yield

0.0

25.0

50.0

75.0

100.0

Re

turn

Ra

nk

ing

9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11

JPMorgan High Yield 06/30/11

36


STYLE MAP (12/31/98 - 06/30/11)




3 YR ROLLING CORRELATION vs. Barclays Capital US Corp: High Yield

0.0% 30.0% 60.0% 90.0% 120.0%

Other

Convertibles

Equities

Cash

Fixed Income

0.0%

0.2%

0.8%

3.4%

95.7%

Avg. Coupon 0.00 %

Nominal Maturity 0.00 Years


Duration 4.89 Years


Avg. Credit Quality B

Corporate Notes/Bonds 86.36 %

US$ Denominated Fgn. Gvt. 7.65 %

Preferred Stock-Non Convertible 0.84 %

Common Stock 0.76 %

GNMA and Other Mtg Backed 0.74 %

Convertible Securities 0.15 %

Asset Backed Securities 0.07 %

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Other

>30Yrs

20-30Yrs

10-20Yrs

5-10Yrs

3-5Yrs

1-3Yrs

<1Yr

1.6%

0.0%

0.0%

6.7%

23.7%

63.3%

0.0%

4.8%

0.0% 20.0% 40.0% 60.0% 80.0%

A Rated

Equities/Other

Government/AAA

BBB Rated

Not Rated

CCC, CC AND C rated

BB AND B Rated

0.2%

1.6%

4.2%

5.5%

5.9%

15.1%

67.5%

JPMorgan High Yield

0.9

1.0



Cap

italizati

on

Manager Style




JPMorgan High Yield 06/30/11

37

FUND INFORMATION


PEER GROUP ANALYSIS - Loan Participation Mutual Funds




Firm and Management:Scott Page and Craig Russ co-managethe fund. Page has been its comanagersince its inception in early 2001. Russjoined him when Payson Swaffield wasappointed as Eaton Vance's chiefincome investment officer in November2007. Russ isn't a novice, though: Hesigned on with the firm in 1997 and hasserved as a bank-loan analyst and as acomanager on Eaton Vance funds suchas closed-end Senior Floating Rate

EFR since 2003.

Investment Strategy:Managers invest in senior, securedfloating-rate bank loans, the majority ofwhich earn junklike credit ratings. Theyfavor companies with strong cash flowsand positive earnings and stay awayfrom those that rely heavily on outsidecapital to finance their businesses.They also place a big emphasis ondiversification by spreading assetswidely across issues and industries.Overall, the fund has a slightly moredefensive profile than the categorynorm.

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Re

turn

(%

)

9.0 12.0 15.0 18.0


StandardDeviation

Return

¢ Eaton Vance Flt Rt 15.89 3.99

Å CSFB Leveraged Loan Idx 15.15 4.33

� Median 15.24 3.33

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Re

turn

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ Eaton Vance Flt Rt 0.42 (26) 2.75 (14) 9.06 (43) 5.24 (32) 3.99 (23) 4.17 (38) 4.05 (37)

Å CSFB Leveraged Loan Idx 0.33 (36) 2.98 (10) 9.68 (35) 5.97 (17) 4.33 (17) 4.75 (4) 4.83 (5)

Median 0.23 2.22 8.86 4.79 3.33 3.85 3.68

2010 2009 2008 2007 2006 2005 2004

Eaton Vance Flt Rt 9.55 (43) 46.49 (21) -30.25 (63) 2.01 (12) 6.48 (36) 4.63 (23) 3.66 (71)

Credit Suisse Leveraged Loan Index 9.97 (39) 44.88 (27) -28.75 (50) 1.87 (17) 7.35 (10) 5.68 (1) 5.61 (17)

Loan Participation Mutual Funds 9.17 41.51 -29.34 1.14 6.18 4.23 4.08

Eaton Vance Flt Rt CSFB Leveraged Loan Idx

0.0

25.0

50.0

75.0

100.0

Re

turn

Ra

nk

ing

9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11

Eaton Vance Flt Rt 06/30/11

38


STYLE MAP (02/28/01 - 06/30/11)




3 YR ROLLING CORRELATION vs. Credit Suisse Leveraged Loan Index

0.0% 30.0% 60.0% 90.0% 120.0%

Convertibles

Equities

Other

Cash

Fixed Income

0.0%

0.1%

0.3%

5.5%

94.1%

Avg. Coupon 3.40 %

Nominal Maturity N/A


Duration 0.13 Years


Avg. Credit Quality BB

US$ Denominated Fgn. Gvt. 93.96 %

Asset Backed Securities 0.11 %

Common Stock 0.09 %

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Other

>30Yrs

20-30Yrs

10-20Yrs

5-10Yrs

3-5Yrs

1-3Yrs

<1Yr

0.4%

0.0%

5.6%

9.0%

30.6%

22.8%

25.2%

6.5%

0.0% 20.0% 40.0% 60.0% 80.0%

Equities/Other

BBB Rated

Government/AAA

Not Rated

CCC, CC AND C rated

BB AND B Rated

0.4%

2.0%

5.5%

10.0%

10.9%

71.2%

Eaton Vance Flt Rt

0.6

0.8

1.0



Cap

italizati

on

Manager Style




Eaton Vance Flt Rt 06/30/11

39

FUND INFORMATION

INDEX ALLOCATION

PERFORMANCE OVER TIME

INVESTMENT STATISTICS (5 YEARS*)


*If less than 5 years, since inception time period was used.

Firm and ManagementPIMCO, founded in 1971, is a globalinvestment solutions provider managingretirement and other assets for morethan 8 million people in the U.S. andmillions more around the world. Thefund is managed by Mihir P. Worah.Mr. Worah is a managing director in theNewport Beach office, a portfoliomanager, and head of the Real Returnportfolio management team. He waspreviously a member of the analyticsteam and worked on real and nominalterm structure modeling and optionspricing.

Investment StrategyPIMCO uses derivatives linked tocommodity indices in an effort to gainexposure to the returns of thecommodity markets, without investingdirectly in physical commodities.PIMCO fully collateralizes thesepositions with fixed income securities,mainly Treasury Inflation-ProtectedSecurities (TIPS) that are activelymanaged in an attempt to outperformthe cost of gaining commodity exposure(in an effort to deliver excess return)and to provide an additional inflationhedge beyond commodities

PIMCO Commodity RR

DJ-UBS Commodity Index

0.0

1.0

2.0

3.0

4.0

Re

turn

(%

)

20.0 22.0 24.0 26.0


PIMCO Commodity RR DJ-UBS Commodity Index

0.0

10.0

20.0

30.0

40.0

-10.0

-20.0

Re

turn

(%

)

Last

Quarter

YTD 1

Year

3

Years

5

Years

7

Years

10

Years

-6.7

-2.6

25.9

-11.9

0.0

3.66.6

-5.0

1.8

34.7

-8.5

3.96.5

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

PIMCO Commodity RR -5.00 1.80 34.69 -8.48 3.88 6.54 N/A

DJ-UBS Commodity Index -6.73 -2.58 25.91 -11.87 -0.05 3.58 6.62

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

PIMCO Commodity RR 24.13 39.91 -43.33 23.80 -3.04 20.50 16.36 29.82 N/A N/A

DJ-UBS Commodity Index 16.83 18.91 -35.65 16.23 2.07 21.36 9.15 23.93 25.91 -19.51

ReturnStandardDeviation

Alpha BetaActual

CorrelationInception

Date

PIMCO Commodity RR 3.88 25.28 4.78 1.18 0.97 07/01/2002

DJ-UBS Commodity Index -0.05 20.69 0.00 1.00 1.00

0.0

6.0

12.0

18.0

24.0

30.0

36.0

B ase

Met

a ls

Ener

gy

Gr a

ins

L ives

tock

Pre

ciou

s M

eta ls

So fts

20.0

34.0

21.0

6.0

11.08.0

PIMCO Commodity RR 06/30/11

40

FUND INFORMATION


PEER GROUP ANALYSIS - IM U.S. GIC/Stable Value (SA+CF)




Investment StrategyThe PLUS Fund's investment strategiesare based on a structured anddiversified multi-product, multi-managerapproach. The PLUS Fund investsprimarily in a diversified portfolio ofstable value investment contracts andfixed income securities that backcertain stable value investmentcontracts. Cash equivalents are held, inpart, to provide liquidity for payouts.The composition of the PLUS Fundportfolio and its allocations to variousstable value investments and fixedincome investment sectors isdetermined based on prevailingeconomic and capital marketconditions, relative value analysis, andother factors. 3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

Re

turn

(%

)

0.0 0.2 0.4 0.6 0.8 1.0


StandardDeviation

Return

¢ Vantage Trust Plus 0.21 4.74

Å Ryan 3 Yr GIC Mstr 0.33 4.13

� Median 0.40 3.99

0.0

1.0

2.0

3.0

4.0

5.0

Re

turn

LastQuarter

YearTo Date

1Year

3Years

5Years

7Years

10Years

¢ Vantage Trust Plus 1.00 (1) 2.01 (1) 4.16 (1) 4.40 (1) 4.74 (1) 4.75 (8) 4.77 (16)

Å Ryan 3 Yr GIC Mstr 0.64 (50) 1.34 (50) 2.97 (58) 3.92 (8) 4.13 (36) 3.90 (72) 4.28 (70)

Median 0.67 1.37 3.11 3.57 3.99 4.07 4.43

2010 2009 2008 2007 2006 2005 2004

Vantage Trust Plus 4.32 (10) 4.55 (7) 4.99 (9) 5.26 (14) 5.01 (8) 4.82 (11) 4.39 (45)

Ryan 3 Yr GIC Mstr 3.53 (48) 4.49 (8) 4.79 (34) 4.52 (100) 3.77 (96) 3.19 (96) 3.45 (96)

IM U.S. GIC/Stable Value (SA+CF) 3.49 3.56 4.71 4.92 4.66 4.46 4.38

Vantage Trust Plus Ryan 3 Yr GIC Mstr

0.0

25.0

50.0

75.0

100.0

Re

turn

Ra

nk

ing

9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 3/09 6/09 9/09 12/09 3/10 6/10 9/10 12/10 3/11 6/11

Vantage Trust Plus 06/30/11

41

Passive Portfolios Weight (%) Proxy Description Style Description

Jan-1979

Barclays Capital Aggregate 35.00

MSCI EAFE (Net) 15.00

Russell 2000 Index 15.00

S&P 500 Index 35.00

Apr-2001




S&P 500 Index 41.00

Jan-2002

70% S&P/30% BC Aggr 50.00




S&P MidCap 400 10.00

Apr-2002




S&P MidCap 400 10.00

70% S&P/30% BC Aggr 50.00

Oct-2005



Dow Jones-UBS Commodity Index 2.00

S&P MidCap 400 7.00

S&P SmallCap 600 7.00

70% S&P/30% BC Aggr 54.00

Jan-2006



S&P MidCap 400 7.00



70% S&P/30% BC Aggr 54.00

Custom Benchmark Allocations Over Time

42

Custom Benchmark Allocations Over TimePassive Portfolios Weight (%) Proxy Description Style Description

Apr-2006




S&P MidCap 400 7.00


70% S&P/30% BC Aggr 54.00

Oct-2007

70% S&P/30% BC Aggr 54.00

S&P MidCap 400 7.00





Apr-2010

70% S&P/30% BC Aggr 52.00

S&P MidCap 400 7.00




Barclays Capital US Corporate High Yield 3.00

CSFB Leveraged Loan 7.00


43

GlossaryAlpha measures a portfolio’s return in excess of the market return adjusted for risk. It is a measure of the manager’s contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively rewarded for the residual risk that was taken for that level of market exposure.

Beta measures the sensitivity of rates of portfolio return to movements in the market. A portfolio’s beta measures the expected change in return per 1% change in the return on the market. If the beta of a portfolio is 1.5, a 1 percent increase in the return of the market will result, on average, in a 1.5 percent increase in the return on the portfolio. The converse would also be true.

Dividend Yield - The total amount of dividends paid out for a stock over the preceding twelve months divided by the closing price of a share of the common stock.

Down Capture Ratio - The Down Capture Ratio is a measure of the Investment’s compound return when the Benchmark was down divided by the Benchmark’s compound return when the Benchmark was down. The smaller the value, the better.

Duration - A time measure of a bond’s interest-rate sensitivity, based on the weighted average of the time periods over which a bond’s cash flows accrue to the bondholder.

Forecasted Long-Term Earnings Growth - This growth rate is a measure of a company’s expected long-term success in generating future year-over-year earnings growth. This growth rate is a market value weighted average of the consensus (mean) analysts’ long-term earnings growth rate forecast for each company in the portfolio. The definition of long-term varies by analyst but is limited to a 3-8 year range. This value is expressed as the expected average annual growth of earnings in percent.

Information Ratio measures the excess return per unit of residual “non market” risk in a portfolio. The ratio is equal to the Alpha divided by the Residual Risk.

Market Capitalization - The market value of a company’s outstanding shares of common stock at a specific point in time, computed as the product of the number of outstanding shares times the stock’s closing price per share.

P/E ratio relates the price of the stock to the per-share earnings of the company. A high P/E generally indicates that the market will pay more to obtain the company because it has confidence in the company’s ability to increase its earnings. Conversely, a low P/E indicates that the market has less confidence that the company’s earnings will increase, and therefore will not pay as much for its stock. In most cases a fund with a high average P/E ratio has paid a premium for stocks that have a high potential for increased earnings. If the fund’s average P/E ratio is low, the manager may believe that the stocks have an overlooked or undervalued potential for appreciation.

P/B ratio of a company relates the per-share market price of the company’s stock to its per-share book value, the historical accounting value of the company’s tangible assets. A high P/B ratio indicates that the price of the stock exceeds the actual worth of the company’s assets. A low P/B ratio would indicate that the stock is a bargain, priced below what the company’s assets could be worth if liquidated.

P/CF ratio compares the total market value of the portfolio to the portfolio’s share of the underlying stocks’ earnings (or book value, cash flow, sales or dividends).

Alpha measures a portfolio’s return in excess of the market return adjusted for risk. It is a measure of the manager’s contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively rewarded for the residual risk that was taken for that level of market exposure.











R-Squared indicates the extent to which the variability of the portfolio returns is explained by market action. It can also be thought of as measuring the diversification relative to the appropriate benchmark. An R-Squared value of .75 indicates that 75% of the fluctuation in a portfolio return is explained by market action. An R-Squared of 1.0 indicates that a portfolio’s returns are entirely related to the market and it is not influenced by other factors. An R-Squared of zero indicates that no relationship exists between the portfolio’s return and the market.

Residual Risk is the unsystematic risk of a fund, or the portion of the total risk unique to the manager and not related to the overall market. This reflects the “bets” which the manager places in that particular asset class. These bets reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager considers a good investment opportunity. Diversification of the portfolio will reduce the residual risk of that portfolio.

Sharpe Ratio is a measure of risk-adjusted return. It is calculated by subtracting the risk-free return (90 day T-Bills) from the portfolio return and dividing the resulting “excess return” by the portfolio’s total risk level (standard deviation). The result is a measure of returned gained per unit of total risk taken.

Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of observations from their sample mean. Standard Deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns, the higher the standard deviation of returns, and the higher the portfolio risk. If returns are normally distributed (i.e. as a bell shaped curve distribution) then approximately 66% of 2/3 of the returns would occur within plus or minus one standard deviation of the sample mean.

Style Exposure Chart indicates a portfolio’s exposure to a particular capitalization (large, medium or small) and style (value or growth). Based on Sharpe’s return based style analysis, a style map will attempt to correlate a manager to a particular style of investing (i.e. Large Cap Growth).

Turnover Ratio - This is a measure of the fund’s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets.

Up Capture Ratio - The Up Capture Ratio is a measure of the Investment’s compound return when the Benchmark was up divided by the Benchmark’s compound return when the Benchmark was up. The greater the value, the better.


Alpha measures a portfolio’s return in excess of the market return adjusted for risk. It is a measure of the manager’s contribution to performance with reference to security selection. A positive alpha indicates that a portfolio was positively rewarded for the residual risk that was taken for that level of market exposure.











R-Squared indicates the extent to which the variability of the portfolio returns is explained by market action. It can also be thought of as measuring the diversification relative to the appropriate benchmark. An R-Squared value of .75 indicates that 75% of the fluctuation in a portfolio return is explained by market action. An R-Squared of 1.0 indicates that a portfolio’s returns are entirely related to the market and it is not influenced by other factors. An R-Squared of zero indicates that no relationship exists between the portfolio’s return and the market.

Residual Risk is the unsystematic risk of a fund, or the portion of the total risk unique to the manager and not related to the overall market. This reflects the “bets” which the manager places in that particular asset class. These bets reflect emphasis in particular sectors, maturities (for bonds), or other issue specific factors which the manager considers a good investment opportunity. Diversification of the portfolio will reduce the residual risk of that portfolio.

Sharpe Ratio is a measure of risk-adjusted return. It is calculated by subtracting the risk-free return (90 day T-Bills) from the portfolio return and dividing the resulting “excess return” by the portfolio’s total risk level (standard deviation). The result is a measure of returned gained per unit of total risk taken.

Standard Deviation is a statistical measure of portfolio risk. It reflects the average deviation of observations from their sample mean. Standard Deviation is used as an estimate of risk since it measures how wide the range of returns typically is. The wider the typical range of returns, the higher the standard deviation of returns, and the higher the portfolio risk. If returns are normally distributed (i.e. as a bell shaped curve distribution) then approximately 66% of 2/3 of the returns would occur within plus or minus one standard deviation of the sample mean.

Style Exposure Chart indicates a portfolio’s exposure to a particular capitalization (large, medium or small) and style (value or growth). Based on Sharpe’s return based style analysis, a style map will attempt to correlate a manager to a particular style of investing (i.e. Large Cap Growth).

Turnover Ratio - This is a measure of the fund’s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets.

Up Capture Ratio - The Up Capture Ratio is a measure of the Investment’s compound return when the Benchmark was up divided by the Benchmark’s compound return when the Benchmark was up. The greater the value, the better.


44

Organization Asset BasePct. Owned by Employees CurrentBoutique vs. Institutional Growth of AUMRecent Changes in Ownership Capacity ConstraintsManagement Investment in Firm’s Products Soft ClosedSpecialized vs. All in One Re-opening of Products

People PerformanceSize of Team Short Term vs. Benchmark and Style GroupStructure of Team Long Term vs. Benchmark and Style GroupExperience of Team Consistency – Relative/Absolute/Risk AdjustedTurnover of Key MembersGrowth of Team with Assets

Philosophy/Process ExpensesStyle Consistency (Growth/Value, Market Cap) Cost vs. CompetitorsDomestic/Int’l drift

Examples of things that would cause concern resulting in a YELLOW or RED box include but not limited to:

6) EXPENSES - A fund or product that is substantially above the median expense ratio or management fee would be a cause for concern.

Fund Analysis Overview Key

1) ORGANIZATION - A change in ownership whereby it is unclear what the structure of the new organization will be, how will key personnel be compensated, and what type of employment contracts are in place to keep key decision makers.

2) PEOPLE - A change in portfolio manager would be a cause for concern. We would assess the new talent taking over. Is the new portfolio manager a current member of the team or is it someone new from outside the group or organization.

3) PHILOSOPHY/PROCESS - A change in portfolio characteristics would be a cause for concern. For example, if a growth style manager suddenly starts investing in value names during a value rally or if a small cap portfolio was migrating into midcap names due to asset growth.

4) ASSET BASE - A small cap fund with more than $3 billion in assets would be a cause for concern or a fund that continues to add assets as it becomes clear the portfolio management team can not handle the inflows. A sign of this would be a large increase in the cash position of the portfolio.

5) PERFORMANCE - A product that fails to outperform either the index and/or the median manager on a consistent basis (at least 50% of the time) would be a cause for concern. Short term and long term performance is considered both on an absolute basis and relative basis in addition to risk-adjusted measures.

Each of the 6 criteria are evaluated on an individual basis and subjective based on Innovest’s assessment. Below are examples of the many factors under each category we consider when making an assessment.

45

sum

me

r 2011

1

Investing

Ma

de

Simp

le

with Pro

fessio

nally-

ma

nag

ed

Portfo

lios

Saving for retirement is a challenge for everyone. Th e

diffi culty is multifaceted, beginning w

ith the fact that most

participants do not have a background in investments

or fi nance. Typically, participants are presented with an

overwhelm

ing amount of inform

ation upon enrollment,

and do not have the time or desire to devote their energy to

learning about the plan’s investment options and portfolio

managem

ent strategies. Th e Model Portfolios are designed

to assist the hands-off investor with allocation and portfolio

managem

ent for their retirement investm

ents. Model

Portfolios are built using three main investm

ent tenets: time

horizon, asset allocation and diversifi cation.

Time

Ho

rizon

Time horizon should be the fi rst and m

ost important

consideration when investors build their retirem

ent portfolios. U

nfortunately, it is usually the last thing many participants

take into consideration, if at all. Time horizon dictates the

percentage of the total portfolio that could be allocated to aggressive investm

ents versus conservative investments. Th e

longer amount of tim

e you have until the investment m

ust start paying out for retirem

ent, the more m

oney you should generally allocate to stocks. Th e investm

ent return of stocks go up and dow

n over short periods of time (volatility),

so investors need to maintain a long-term

investment

perspective, leaving assets invested in stock mutual funds

for many years to ride out the ups and dow

ns of the market.

Th e shorter time horizon you have, the m

ore money you

should allocate to less volatile investments such as incom

e investm

ents - bonds, stable value, and money m

arket instrum

ents. Income investm

ents are less volatile and

therefore better suited for investors who have a short tim

e period before the investm

ents are needed to fund retirement.

Asse

t Allo

ca

tion

Asset allocation is the principal of investing money in

diff ering kinds of investments, such as stocks, bonds and

cash or money equivalents. Studies have proven the vast

majority of a portfolio’s variability is due to asset allocation,

not specifi c underlying investment products that are

utilized. Various asset classes have diff erent return and risk expectations. For exam

ple, over the long-term, bonds have

historically produced lower investm

ent returns than stocks, but should be a part of your retirem

ent portfolio to provide som

e protection against the downside risk of stock holdings.

In other words, stocks and bonds traditionally have opposite

reactions to market conditions, so w

hen the stock portion of your portfolio falls, the piece allocated to bonds w

ill generally help cushion the fall.

> mo

re, p

ag

e 2

Investments in the cash asset class include the m

ost conservative options, such as m

oney market funds. W

hile these have produced the low

est returns over long periods, the cash asset class provided the m

ost stability over the same

historical long periods (see chart above).

Dive

rsifi ca

tion

Diversifi cation of your retirem

ent savings portfolio refers to the division of your m

oney within the m

ajor asset classes (stocks, bonds and cash). For exam

ple, you can diversify the stock portion of your asset allocation by investing in various types of equity (stock) funds that possess diff erent risk and rew

ard (return) characteristics. By diversifying your portfolio, you reduce risk because the poor perform

ance of one single investm

ent can be off set by gains, or less signifi cant losses, of other investm

ents. Th e amount of portfolio risk is reduced

because you avoid betting your entire retirement future on

just a few investm

ents. Th ere are three comm

on types of stock investm

ent styles – growth, value and core. G

rowth

companies expect to produce higher than average grow

th in earnings, sales, and cash fl ow. N

ormally such com

panies do not pay dividends (a portion of their profi t paid to shareholders). Instead, grow

th companies tend to reinvest

profi ts in the company. Technology, telecom

munication and

media com

panies are some exam

ples of growth com

panies.

Th e opposite of “growth” is a “value” com

pany. Generally,

value companies are w

ell established, high quality companies

with a below

average price per share for the fi rm, com

pared to industry standards. Th ese com

panies may be tem

porarily undervalued due to recent events or opinion and they usually pay dividends. Financial, energy and utility com

panies are considered value com

panies. A mutual fund’s investm

ent style is determ

ined by the type of companies that m

ake up the fund’s portfolio. W

hile some funds focus only on value or

growth stocks, a core m

utual fund is buying a combination of

growth and value stocks.

Most stock m

utual funds target their investment to a

particular size of company. Another w

ay to diversify your portfolio is by dividing your retirem

ent savings among

funds that invest in diff erent company sizes. A com

pany’s size is know

n as its market capitalization. C

apitalization (cap) is calculated by m

ultiplying the number of stock

shares outstanding by the stock’s price. Com

panies can be large cap, m

id cap, small cap and m

icro cap (very small

companies). Large cap com

panies are mature com

panies w

ith long histories, and tend to have a market capitalization

over $15 billion. Mid cap com

panies tend to have a market

capitalization between $3-$15 billion and often have greater

growth potential than large cap com

panies. Small cap

> mo

re, p

ag

e 3

2

Investing

Ma

de

Simp

le w

ith Profe

ssiona

lly-ma

nag

ed

Portfo

lios

co

ntin

ue

d fro

m c

ove

r

Gro

wth C

om

pa

rison o

f $1 Investe

d O

ver La

st 20 C

ale

nda

r Yea

rs in Ma

jor A

sset C

lasse

s

January 1991 Decem

ber 2000 Decem

ber 2010

$12.12

$5.75

$4.02

$2.03

$1

20-Year Average Annualized Returns(Period ending 12/31/2011)

Small Stocks: 13.3%

Large Stocks: 9.1%

Bonds: 7.2%

Cash: 3.6%

Notes: 20-year historical perform

ance of Small Stocks (Russell 2000 Value), Large Stocks (S&

P 500); Bonds (BC U.S. Aggregate); and, Cash (90-day U.S. Treasury Bill). Past performance is not

guaranteed and is not Indicative of future results. Source: Morningstar Principia

3

who

do

I ca

ll for he

lp?

published by InSight Employee Benefi t Com

munications, Inc.

4643 S. Ulster Street, Suite 800 | Denver, CO 80237 | 720.228.4157 | ww

w.insightebc.com

companies generally have a capitalization under $3 billion. By

spreading your investments am

ong mutual funds that invest

in companies of diff ering sizes you can spread your risk and

potentially increase your return.

Another way to diversify your portfolio is to invest in

international mutual funds. By investing in international

mutual funds you gain exposure to m

any successful com

panies outside of the U.S. dom

icile. Overseas econom

ies m

ay perform w

ell when the U

.S. markets struggle, therefore

providing yet another opportunity to decrease the overall risk of your portfolio rather than investing in dom

estic funds alone. Like dom

estic mutual funds, international funds also

off er large, mid, and sm

all cap options, along with grow

th, value and core styles.

Asse

t Allo

ca

tion a

nd D

iversifi c

atio

n Ma

de

Simp

le

If you do not have the background or desire to establish the appropriate asset allocation and diversifi cation for your ow

n retirement portfolio, the M

odel Portfolio can be a great opportunity to attain these objectives w

hile eliminating the

guess work. Th e M

odel Portfolio off ered in the Boulder Police

and Fire Money Purchase Pension Plan has a predeterm

ined m

ix of stocks, bonds and cash, therefore taking the guesswork

out of establishing your own asset allocation. Th e M

odel Portfolio is designed to achieve an expected rate of return w

hile limiting risk w

ithin a stated risk tolerance.

Another important feature is that the M

odel Portfolio is periodically rebalanced to the stated percentages autom

atically for you. Because investm

ents grow at diff erent rates over

time, your original asset allocation can drift out of balance.

Th is drift may increase the likelihood that your investm

ents w

on’t meet your expectations. Rebalancing is the process of

returning your portfolio to its original percentages. Perhaps investors see the biggest benefi t of this type of hands-off fund in tim

es of fi nancial upheaval. During bear m

arkets, such m

anaged portfolios typically outperform portfolios put

together haphazardly by average investors by doing what they

were designed to do - lim

iting downside risk.

Investing

Ma

de

Simp

le w

ith Profe

ssiona

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Portfo

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co

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ue

d fro

m p

ag

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ac

co

unt inform

atio

n>

balances

> investm

ent changes

> change personal info

contact : ICM

A-RC

800.669.7400 | ww

w.icm

arc.org

The P

lan’s Inve

stme

nt Co

nsultant

Innovest Portfolio Solutions

4643 S. Ulster St., Suite 1040D

enver, CO 80237

303.694.1900 | ww

w.innovestinc.com

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Average 401(k) Plan Expenses 1.24% 0.61%

Boulder Fire & Police Plan Fund Name Fund Objective/Category Ticker

Category Median Expense Ratio

Category Annual Expense For Each $1,0001

MutualFund

Expense Ratio

Mutual Fund Annual

Expense For Each $1,0001

Munder Mid‐Cap Core Growth Y Mid Cap Growth MGOYX 1.20% $ 12.00 1.12% $ 11.20ICM Small Company Sm Cap Value ICSCX 1.17% $ 11.70 0.92% $ 9.20American Funds EuroPacific Gr R4 International Lg Cap Growth RERFX 1.14% $ 11.40 0.86% $ 8.60

Comparison of Plan Expenses for the Boulder Fire & Police Retirement Plan

Boulder Fire & Police Plan Expense Estimate

Your retirement plan offers many different mutual fund investment options that cover a broad range of risk and investment opportunites. Each fund charges fees for management and operating expenses. These fees are referred to as the expense ratio. This is the percentage of fund assets paid for operating expenses and management fees. The expense ratio typically includes the following types of fees: accounting, administrator, advisor, auditor, board of directors, custodial, distribution (12b‐1), legal, organizational, professional, registration, shareholder reporting, sub‐advisor, and transfer agency. The table below provides a comparison between the median category expense ratio and the actual expense ratio of funds offered through theBoulder Fire and Police Money Purchase Pension Plan) Retirement Plan. Source: Innovest Portfolio Solutions LLC.

Plan Expenses ‐ Expenses for your retirement plan include investment, record‐keeping (accounting and reporting), customer service, participant education, trust and custody, and the cost of professionals hired by the Plan, such as investment consultants, accounts and attorneys. The table below provides a comparison between annual plan expenses for the average 401(k) retirement plan (as a percentage of assets) and the actual expenses for the Boulder Fire and Police Money Purchase Pension Plan. Source: 401(k) Source Data.

g p $ $Dodge & Cox International Stock International Lg Cap Value DODFX 1.14% $ 11.40 0.65% $ 6.50Eaton Vance Floating Rate I Floating Rate Corporate Loans EIBLX 1.29% $ 12.90 0.79% $ 7.90PIMCO Total Return Instl Core Bond PTTRX 0.56% $ 5.60 0.46% $ 4.60JPMorgan High Yield Select High Yield JHYUX 0.98% $ 9.80 0.91% $ 9.10PIMCO Commodity Real Ret Strat Instl Commodity PCRIX 1.09% $ 10.90 0.74% $ 7.40Vantage Trust Plus Stable Value CM‐VTP 0.50% $ 5.00 0.56% $ 5.60Boston Trust Balanced Dom Balanced SA‐BTBal 1.15% $ 11.50 0.64% $ 6.40

portfolio review 2nd quarter 2011bouldernewhireplan.org/images/boulder_f_p_report_2q11.pdf · •...

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