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Other Post Employment Benefits OPEB Board. Aug 10, 2011.

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OTHER POST-EMPLOYMENT BENEFITS (OPEB) BOARD AGENDA August 10, 2011 - 3:30 P.M. - City Hall Caucus Room - City Hall - City of Dover Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at cityclerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Quarterly Performance Report (Peirce Park Group) 2. Setting of Future Meeting Dates /ac S:\AGENDAS & MINUTES\Misc-Agendas\OPEB\2011\08-10-2011 OPEB.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

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City of Dover – OPEB Trust Investment Performance Report June 30, 2011 Data Knowledge Wisdom RESULTS Ph: (610) 719-0300 300 South High Street Fax: (610) 719-8345 West Chester, PA 19382 www.Peircepark.com

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PEIRCE PARK GROUP PERFORMANCE EVALUATION AND REPORTING SERVICES INFORMATION DISCLAIMER Peirce Park Group has exercised reasonable professional care in the preparation of this performance report. Peirce Park Group relies on the client’s custodian for security holdings, market values, and transaction dates - these may differ from money manager statements. Returns are calculated using the custodian statements. There may be discrepancies in asset values and returns with managers, due to different values or methodologies used by the managers and custodians. When the manager(s) and the custodian are one and the same, we have no ability to determine the accuracy of the asset values put forth. Information in this report on market indices, security characteristics, and universe comparisons is received from Wilshire Associates. Therefore, we can make no guarantee as to the completeness or accuracy of the report. Total fund universes are generally comprised of separate accounts which are calculated gross of management fees. When clients have mutual funds in their portfolio, which have management fees included in returns (net), we increase (gross) the total fund return by an amount that reflects the internal costs of the fund (internal costs include, but are not limited to, management fees, advisory/subadvisory fees, administrative fees, interest expenses and fee reimbursements). We believe this allows for a better “apples to apples” universe comparison. Total Plan returns are derived from Wilshire Associates.

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Market Environment – 2nd Quarter 2011 The fragile recovery in the global economy hit several rough patches in the second quarter of 2011 and global securities’ markets took investors for a rather tumultuous ride. Despite the unfolding debt crisis in Europe, p p opular rebellions in the Middle East and continued volatility in commodity prices, April was a fairly strong month for global stocks and bonds. However, global markets spent much of the rest of the quarter erasing April’s gains. June ended with essentially flat returns for the quarter. Economic data has disappointed over the past two months with headwinds such as energy prices and the conclusion of the Federal Reserve’s bond buying program stymieing the recovery. After a 3.1% annual increase in the fourth quarter of 2010, U.S. real Gross Domestic Product growth l slowed considerably to a 1.9% id annual rate as of the first quarter of 2011. The current economic slowdown occurred despite last December’s tax deal, which provided additional fiscal stimulus by extending the Bush-era tax cuts through 2012. Contributing to the slowdown is the surge in oil, gasoline and Natural Gas and Crude Oil Prices food prices. Every $0.01 rise in the gallon of gasoline costs U.S. consumers an additional $1.25 billion a year. In May, retail sales declined, breaking a streak of 10 consecutive months of positive growth. Disappointing auto sales contributed heavily to this decline. The fallout from the Japanese earthquake and the disruption in global automotive supply chains was a primary factor. These incidents alone subtracted a full percentage point from U.S. GDP growth this past quarter. Copyright © 2011 Peirce Park Group. All Rights Reserved. This Report is not to be construed as an offer or solicitation to buy or sell securities, or to engage in any trading or investment strategy. The views contained in this Report are those of Peirce Park Group as of June 30th 2011, may change as subsequent conditions vary, and are based on information obtained by Peirce Park Group from sources that are believed to be reliable. Such information is not necessarily all inclusive and is not guaranteed as to accuracy. Peirce Park Group is not responsible for typographical or clerical errors in this Report or in the dissemination of its contents. Reliance upon information in 1 this Report is at the sole discretion of the reader.

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Market Environment – 2nd Quarter 2011 The federal budget deficit is on track to come in near $1.35 trillion in the U.S. Unemployment Rate current fiscal year. This represents approximately 9% of GDP. In 2010, the deficit was also around 9% of GDP. In 2009, the deficit was a record 12 $1.4 trillion. A better economy should result in a shrinking deficit. By 10 2014, if growth forecasts prove accurate, the deficit is expected to settle 8 in near 5% of GDP. However, this is still well above the long-term average budget deficit. % 6 4 June’s dismal employment p p report g highlights the severity of the current economic slowdown. Job growth has all but stalled, and the 2 unemployment rate inched higher ending the quarter at 9.2% up from 0 8.8% at the end of March. Behind the weak job numbers is an Jan‐ Ju 10 l‐0 Ja 1 n‐ Ju 20 l‐0 Ja 2 n‐ Ju 30 l‐0 Ja 3 n‐ Ju 40 l‐0 extraordinary level of skittishness among businesses. While companies Ja 4 n‐ Ju 50 l‐0 Ja 5 n‐ Ju 60 l‐0 Ja 6 n‐ Ju 70 l‐0 Ja 7 n‐ Ju 80 l‐0 Ja 8 n‐ Ju 90 l‐0 Ja 9 n‐ Ju 01 l‐1 Ja 0 n‐ 11 Source: Bureau of Labor Statistics are not laying off workers, they remain reluctant to step up hiring, as they are unnerved by Washington’s apparent deadlock over how to address the nation’s daunting fiscal challenges. U.S. Hiring/Layoff Rate Although consumer-level inflation moderated somewhat as crude oil prices fell over the quarter (from $106.72 per barrel to $95.42 per barrel), higher commodity prices and inflationary pressures are being transmitted to the consumer and are being felt in the economy. The impact of higher commodities compresses economic conditions for both corporations and consumers in different ways. Overall, it reduces p disposable income and therefore potential consumption, while at the same time constricting corporate margins, dulling corporate confidence and hampering the potential for wage growth. In addition, the energy price headwind to growth becomes even more apparent when looked at against wage inflation expectations, which have flat-lined at effectively zero. 2

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Market Environment – 2nd Quarter 2011 Over the past month, the market has begun to price in the longer Commodity Price Index term economic impact created by energy and commodity price inflation particularly in relation to the risks associated with growth. 250 Diversified commodities, as measured by the S&P GSCI Index, fell 200 5.3% during the month. In addition, real assets declined along with other risk assets as the markets weighed up the real effects of rising Index Level 150 energy and commodity prices on global growth. 100 Due to the pullback in commodity prices during the quarter, the U.S. Consumer Price Index (All Urban Consumers) rose only 1.0% in the 50 second quarter following a steeper 2.0% rise in Q1. Rising 3% Y.T.D., CPI is still on an upward tick compared to the low 0 inflationary environments of recent years. Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Skittishness is evident in businesses’ desire to hoard cash. Profit margins are about as wide as they have ever been, particularly among Quick Ratio for Non-Financial Corporations large and midsized firms. Companies are investing more, raising dividend p yayouts and stock prepurchases and boosting mergers and acquisitions. They are still making money though and sitting on significant cash reserves. The quick ratio for nonfinancial corporate businesses - liquid assets as a share of short term liabilities - is at a post-World War II high. Yet firms cannot seem to shake the fear that they will be caught short if they take a chance and deploy their cash reserves more aggressively. 3

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Market Environment – 2nd Quarter 2011 In the minds of business owners, the two keys to a revival in growth Debt Ceiling Debate Unnerves Investors later this year will be a pull back in energy prices and a timely resolution of Washington’s debt ceiling debate. Some suggest that oil prices have peaked. Apart from Libya, the Middle East region’s other oil fields and pipelines are operating and Saudi Arabia has promised to make up any shortfall. Growth in oil demand is also moderating as higher prices curb consumption in the developed world and policymakers in emerging markets are moving to slow inflationary pressures in their economies. President Obama and Congress have until early August to raise the U.S. statutory debt ceiling or the Treasury will be unable to pay all its bills. If that were to happen, the Treasury would almost surely prioritize the government’s obligations so that p y g ayments on the federal debt would be made on time. There would likely also be enough to pay the military’s expenses. Beyond that, there would not be enough cash to go around. Government employees could be put on temporary leave, unemployed workers might not receive full benefits and Social Security recipients could come up short. Eventually the ceiling would be increased and everyone would receive what they were owed, but precisely when is unclear. Although there would be no technical U.S. debt default, stock and bond markets would face turmoil. Cracks are already developing in the market for credit d f efault swaps on Treasury bonds. The rating agencies have already put Treasury debt on negative watch for a possible downgrade. Once the spending cuts start in early August, global investors will begin to question the security of their own bonds. Interest rates should p spike as investors demand compensation p for the risk of holding U.S. debt. It is expected that the government will raise the debt ceiling, at least for a few months. The hope is that Interest Rate Trends: Economic data that suggested a still-struggling recovery, as an agreement will be put in to place that will significantly reduce well as the growing uncertainty stemming from the European debt crisis, future deficits. contributed to a decline in US Treasury rates across the yield curve. 4

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Market Environment – 2nd Quarter 2011 DOMESTIC EQUITY QTR YTD 1 Year 3 Year 5 Year 10 Year DOMESTIC FIXED INCOME QTR YTD 1 Year 3 Year 5 Year 10 Year Russell 3000 Index (0.0) 6.4 32.4 4.0 3.4 3.4 Cash/Merrill Lynch 3-month T-Bill 0.0 0.1 0.2 0.4 2.0 2.1 Russell 3000 Growth Index 0.6 7.0 35.7 5.3 5.4 2.4 Barclays Govt/Credit 1-3 Yr 0.9 1.1 1.9 3.5 4.5 4.0 Russell 3000 Value Index (0.7) 5.7 29.1 2.7 1.2 4.3 Barclays Intermediate Government/Credit 2.1 2.5 3.8 5.8 6.1 5.4 S&P 500 Index 0.1 6.0 30.7 3.3 2.9 2.7 Barclays Long Government/Credit 3.3 3.3 3.2 8.2 7.7 7.2 Russell 1000 Index 0.1 6.4 31.9 3.7 3.3 3.2 Barclays Government 2.2 2.1 2.3 5.1 6.1 5.4 Russell 1000 Growth Index 0.8 6.8 35.0 5.0 5.3 2.2 Barclays Credit Bond 2.5 3.4 6.2 8.2 7.0 6.3 Russell 1000 Value Index (0.5) 5.9 28.9 2.3 1.2 4.0 Barclays Aggregate Bond 2.3 2.7 3.9 6.5 6.5 5.7 Russell TOP 200 Index (0.0) 5.6 29.2 2.6 2.5 1.7 Barclays Mortgage Backed Securities 2.3 2.9 3.8 6.9 7.0 5.8 Russell TOP 200 Growth Index 0.4 5.8 31.9 4.5 5.0 1.2 Barclays High Yield Corporate Bond 1.1 5.0 15.6 12.7 9.3 9.0 Russell TOP 200 Value Index (0.4) 5.5 26.5 0.6 0.0 2.1 Barclays Treasury Inflation-Protected Securities 3.7 5.8 7.7 5.3 6.9 7.0 Russell Mid-Cap Index 0.4 8.1 38.5 6.5 5.3 7.6 Consumer Price Index 1.0 3.0 3.6 1.0 2.2 2.4 Russell Mid-Cap Growth Index 1.6 9.6 43.3 6.6 6.3 5.5 INTERNATIONAL/GLOBAL EQUITY Russell Mid-Cap Value I d ndex (0.7) 6.7 34.3 6.4 4.0 8.4 MSCI EAFE (Net) 1.6 5.0 30.4 (1.8) 1.5 5.7 Russell 2000 Index (1.6) 6.2 37.4 7.8 4.1 6.3 MSCI EAFE Growth (Net) 2.1 4.4 31.3 (1.9) 2.5 5.3 Russell 2000 Growth Index (0.6) 8.6 43.5 8.4 5.8 4.6 MSCI EAFE Value (Net) 1.0 5.6 29.4 (1.7) 0.4 6.0 Russell 2000 Value Index (2.7) 3.8 31.4 7.1 2.2 7.5 MSCI EAFE Small Cap (Net) 0.9 3.8 36.4 3.3 2.3 10.1 DOMESTIC EQUITY BY SECTOR MSCI AC World Index (Net) 0.3 4.7 30.1 0.9 3.2 4.8 MSCI US Consumer Discretionary 3.5 8.2 42.2 15.0 5.6 4.1 MSCI AC World Index Growth (Net) 0.9 4.3 32.0 0.8 4.2 4.6 MSCI US Consumer Staples 5.7 8.9 28.2 9.3 8.6 7.7 MSCI AC World Index Value (Net) (0.4) 5.1 28.2 1.1 2.1 4.9 MSCI US Energy (5.1) 11.0 53.8 (3.6) 7.7 12.2 MSCI Europe ex U.K. (Net) 2.8 10.8 36.9 (2.3) 2.5 6.5 MSCI US Financials (4.8) (1.7) 15.8 (3.6) (9.0) (1.2) MSCI U.K. (Net) 1.7 5.6 34.1 (1.4) 1.2 5.5 MSCI US Health Care 6.9 14.0 30.3 8.9 6.2 3.6 MSCI Pacific ex Japan (Net) (0.2) 2.5 35.6 5.1 10.2 13.2 MSCI US Industrials (1.4) 7.4 38.6 4.5 3.8 4.8 MSCI Japan (Net) 0.2 (4.8) 13.0 (4.3) (3.8) 1.4 MSCI US Information Technology (1.3) 3.0 28.9 7.2 7.3 1.5 MSCI Emerging Markets (Net) (1.2) 0.9 27.8 4.2 11.4 16.2 MSCI US Materials (1.5) 4.4 46.8 1.0 8.2 9.2 FTSE EPRA/NAREIT Global Real Estate 2.5 4.6 31.5 2.3 1.8 - MSCI US REITs 3.6 10.3 34.1 5.4 2.4 10.6 SPECIALTY MSCI US Telecommunication Svcs. 2.4 7.1 37.5 4.5 4.7 0.3 S&P GSCI (7.9) 2.7 26.1 (21.7) (6.2) 3.7 MSCI US Utilities 5.2 9.5 25.2 (1.0) 5.1 3.9 S&P GSCI Gold 4.3 5.4 19.8 16.4 18.3 17.8 Source: Morningstar, MSCI Barra, Barclays Capital 5

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Market Environment – 2nd Quarter 2011 U.S. stocks carried first-quarter momentum into April, with a 3.0% return for the Russell 3000; however, following April’s return, six 2Q 2011 Returns weeks of fear/volatility gripped the markets and a general sell off 1 0.8 occurred so that by June 30th the Russell 3000 returned 0% for the 0.4 quarter. 0.1 0 0.0 The Large Cap S&P 500 outperformed the All Cap Russell 3000 by -0.5 Total Return, % 0.1%, as larger capitalized companies out performed smaller issues -0.6 -1 during the quarter. Mid sized companies were the real winners in the quarter as the Russell Mid Cap index was up 0.4%. The big story for the quarter was the negative return in the small cap space (Russell -1.6 -2 2000 was down -1.6%). Among larger company stocks, defensive value-oriented equities -2.6 -3 outperformed growth-oriented names, with the Wilshire U.S. Large Value Index returning 0.6%, compared to the (-0.5%) slide for the S&P 500 Index Russell 1000 Growth Index Russell 3000 Index Russell 1000 Value Index Russell Mid-Cap Index Russell 2000 Growth Index Russell 2000 Index Russell 2000 Value Index Wilshire U.S. Large Growth Index. However, Russell characterizes value and growth differently and the Russell 1000 Growth 2Q 2011 Returns outperformed the Russell 1000 Value (+0.8% and -0.5%, 8 respectively). Within smaller-company stocks, h ll the Russell 2000 6.9 Growth Index outperformed the Russell 2000 Value Index (-0.6% 6 5.6 5.2 and -2.7%, respectively). 4 3.6 As investors sought out safe haven positions, the strongest Total Return, % 2 performers for the quarter were the defensive Health Care, Consumer Staples and Utility sectors (+6.9%, +5.7% and +5.2% 0 respectively). Financials, hampered by continued balance sheet worries, were one of the worst performing sectors for the quarter -2 (-4.8%). Energy stocks, reflecting the drop in oil prices and concerns -4 about global growth also ended down sharply for the quarter -5.1 -4.8 (-5.1%). Despite the ongoing slump in residential real estate sales, -6 the MSCI REIT Index returned +3.6% for the second quarter, easily Consumer Staples Energy Financials Health Care Utilities Real Estate 6 outpacing all broad U.S. stock sectors.

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Market Environment – 2nd Quarter 2011 R fl eflecting a broad flight to fsafety over much of h the second quarter, treasury yields fell, with the bellwether 10-year yield falling 27 basis Major Currency Movements vs. US Dollar (2nd QTR) points (bps) to 3.26% at quarter-end. Still, Treasury yields fell across 9 8.7% Australian Dollar all maturities over the second quarter; two-year rates slid 31 bps to 8 Brazilian Real Canadian Dollar 0.47%, while thirty-year yields moved 14 bps lower to 4.39%. y 7 Chinese Yuan Renminbi Euro 6 Japanese Yen South Korean Won The Barclays 1-3 Year Gov’t/Credit Index returned 0.9%, while the 5 Swiss Franc Total Return, % 4.1% UK Pound Sterling Barclays Gov’t/Credit Long Term Index returned 3.3% for the 4 3.5% quarter. Given the defensive nature of the markets during the 3 2.6% 2.7% 2.2% quarter, Federal agency and corporate credit spreads widened slightly, 2 1.3% but credit still managed to outperform Government and Mortgage- 1 0.8% 0.2% Backed debt for the quarter. (+2.5%, +2.2% and +2.3%, 0 respectively). International stock markets were not immune to the headwinds afflicting the U.S. market. Volatile commodity prices, fluctuating U.S. high i yield corporate bond spreads id widened more h than demand, Middle East uncertainty and h the ongoing debt i crisis in investment-grade bonds, leading this market sector to underperform Greece all contributed to weak international markets. However, a all other U.S. broad bond market segments (+1.1%). This weak dollar and strength in the German and the U.K. markets underperformance is not surprising as high yield debt tends to afforded some good news to investors with offshore assets. In correlate more highly with equities. general, developed-markets p outperformed emerging markets. p The Pacific region (excluding Japan) underperformed the broad international market as concerns of slowing growth in China’s economy eclipsed guarded optimism of Japan’s ability to rebuild after the devastating March earthquake. Emerging market stocks, with their heightened sensitivity to commodities i pricing and the economic health of their trading partners, were notable Yield Curve Slope: The yield curve steepened. The slope between two- Sector Spreads: Investors were hesitant to take risks, which led to year yields and 10-year yields steepened by 6 bps, and the slope between mixed results versus US Treasuries. Spreads on investment-grade, underperformers in the second 7 five-year yields and 30-year yields steepened by 35 bps. high-yield and mortgages all increased. quarter.

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Highlights • Gained over $46,000 during the quarter, returning 0.8% (benchmark 0.9%). • Since inception (Sept 2010) Trust returned 12.3%. • Gained over $900,000. • Outperformed policy index (12.3% vs. 12.0%). •Active management added to performance for the quarter, particularly: • Ridgeworth Small Cap Value – • Stock selection added value of almost 5% relative to its benchmark. • Harding Loevner Global (growth) – • Stock selection in information technology and materials contributed to outperformance. • Overweight to consumer staples and stock selection in the sector also contributed positively. • Overweight to small cap stocks detracted from performance for the quarter. • Value tilt in small cap stocks also detracted from performance. 9

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Asset Summary OPEB BMV Contribution Withdrawls Fees Gain EMV Return (month) April p 6,899,844.50 0.00 0.00 1,250.00 191,137.72 7,089,732.22 2.77% May 7,089,732.22 0.00 0.00 0.00 (60,543.37) 7,029,188.85 -0.85% June 7,029,188.85 0.00 0.00 0.00 (84,430.29) 6,944,758.56 -1.20% TOTAL (net) 6 899 ,899,844.50 0.00 0.00 1 250 ,250.00 46 164 ,164.06 6 944 ,944,758.56 TOTAL (gross) = 0.79% 10

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Performance Summary – cumulative QUARTER YEAR TO DATE 1 YEAR 3 YEARS 5 YEARS INCEPTION INCEPTION TOTAL ASSET TARGET TOTAL FUND RETURN RANK RETURN RANK RETURN RANK RETURN RANK RETURN RANK RETURN RANK DATE ASSETS ALLOCATION ALLOCATION TOTAL FUND (Gross) 0.8 79 5.2 33 12.3 27 10/1/2010 6,944,759 100.0% 100% Policy Index* 0.9 75 4.9 45 12.0 34 Base Policy Index** 1.1 50 4.6 55 10.4 40 DOMESTIC EQUITIES VANGUARD VALUE INDEX (0.6) 60 6.4 36 28.7 50 3.0 47 1.5 57 17.2 37 9/17/2010 1,300,876 18.7% 21% MSCI US Prime Market Value (0.6) 60 6.5 36 28.8 49 3.0 47 1.5 57 17.3 37 AF FUNDAMENTAL INVESTORS (0.4) 64 6.3 31 31.5 27 1.9 73 4.1 19 17.2 44 9/17/2010 727,679 10.5% 8% S&P 500 0.1 39 6.0 37 30.7 36 3.3 38 2.9 40 17.4 36 TARGET SMALL CAPITALIZATION VALUE (1.2) 24 7.2 14 33.5 47 8.6 57 5.9 20 21.7 41 9/17/2010 609,020 8.8% 6% RIDGEWORTH SMALL CAP VALUE 1.5 2 7.8 10 36.7 20 13.2 13 6.7 14 20.1 57 9/17/2010 609,243 8.8% 6% Russell 2000 Value (2.7) 64 3.8 68 31.4 59 7.1 72 2.2 77 19.7 62 TOTAL DOMESTIC EQUITIES 3,246,818 46.8% 44% GLOBAL AMERICAN FUNDS NEW PERSPECTIVE 0.3 54 4.5 59 30.1 52 3.6 31 5.8 17 13.9 52 9/17/2010 1 138 ,138,807 16.4% 6% HARDING LOEVNER GLOBAL EQUITY 2.0 26 3.7 66 29.1 59 4.3 25 6.1 14 13.7 53 9/22/2010 560,612 8.1% 8% MSCI World (Net) 0.5 50 5.3 47 30.5 47 0.5 62 2.3 64 14.7 45 MSCI ACWI (Net) 0.3 54 4.7 56 30.1 51 0.9 58 3.2 47 13.8 53 TOTAL GLOBAL 1,699,418 24.5% 24% FIXED INCOME VANGUARD TOTAL BOND INDEX 2.3 17 2.5 70 3.7 81 6.4 63 6.5 44 1.2 75 9/17/2010 1,020,356 14.7% 10% PIMCO TOTAL RETURN 1.9 59 3.0 43 5.9 32 9.5 9 8.9 2 2.0 45 9/17/2010 977,716 14.1% 25% Barclays Capital US Aggregate Bond 2.3 16 2.7 59 3.9 76 6.5 62 6.5 45 1.4 67 TOTAL FIXED INCOME 1,998,073 28.8% 32% CASH & EQUIVALENTS WELLS FARGO ADVANTAGE CASH 0.0 - 0.1 - 0.1 - 0.6 - 2.3 - 0.1 - 9/10/2010 450 0.0% 25% ML US 90-Day T-Bill 0.0 - 0.1 - 0.2 - 0.4 - 2.0 - 0.1 - *54% Russell 3000 / 32% Barclays Interm. Gov/Credit / 14% MSCI EAFE (Net). **50% Russell 3000 / 38% Barclay's Aggregate Bond / 10% MSCI EAFE (Net) / 2% ML 3 Month Tbill Returns listed are the actual returns for the mutual funds and are net of fees. Please note that the returns listed for each Mutual Fund are their historical returns. Inception returns begin at month end following inception. Total Fund Return rankings are versus all public defined benefit plans in the Wilshire Cooperative Universe. 11

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Performance Summary – consecutive 2010 2009 2008 2007 2006 2005 INVESTMENT DOMESTIC EQUITY RETURN RANK RETURN RANK RETURN RANK RETURN RANK RETURN RANK RETURN RANK DATE VANGUARD VALUE INDEX 14.5 35 19.7 68 (35.9) 43 0.1 61 22.2 7 7.1 37 9/17/2010 MSCI US Prime Market Value 14.5 35 19.5 70 (36.0) 44 0.2 61 22.4 6 7.3 36 AF FUNDAMENTAL INVESTORS 14.4 49 33.6 17 (39.7) 75 13.6 6 19.2 6 11.7 4 9/17/2010 S&P 500 15.1 32 26.5 55 (37.0) 42 5.5 44 15.8 25 4.9 53 TARGET SMALL CAPITALIZATION VALUE 23.6 74 26.7 70 (27.5) 20 0.5 14 17.7 50 10.1 11 9/17/2010 RIDGEWORTH SMALL CAP VALUE 28.8 29 36.0 33 (32.0) 48 2.0 11 16.1 60 12.5 3 9/17/2010 Russell 2000 Value 24.5 70 20.6 88 (28.9) 28 (9.8) 77 23.5 6 4.7 70 TOTAL DOMESTIC EQUITIES GLOBAL AMERICAN FUNDS NEW PERSPECTIVE 13.1 50 37.7 32 (37.8) 26 16.0 27 19.9 51 11.3 50 9/17/2010 HARDING LOEVNER GLOBAL EQUITY 15.6 32 40.2 27 (38.3) 27 16.4 24 17.8 67 16.7 10 9/22/2010 MSCI World (Net) 11.8 61 30.0 64 (40.7) 43 9.0 59 20.1 50 9.5 63 MSCI ACWI (Net) 12.7 53 34.6 41 (42.2) 54 11.7 45 21.0 36 10.8 53 TOTAL GLOBAL FIXED INCOME VANGUARD TOTAL BOND INDEX 6.5 69 6.0 87 5.2 14 7.0 14 4.3 41 2.4 27 9/17/2010 PIMCO TOTAL RETURN 8.8 24 13.8 41 4.8 15 9.1 1 4.0 58 2.9 7 9/17/2010 Barclays Capital US Aggregate Bond 6.5 69 5.9 88 5.2 13 7.0 14 4.3 38 2.4 25 TOTAL FIXED INCOME CASH & EQUIVALENTS WELLS FARGO ADVANTAGE CASH 0.2 - 0.5 - 2.8 - 5.3 - 5.0 - 3.1 - 9/10/2010 ML US 90-Day T-Bill 0.1 - 0.2 - 2.1 - 5.0 - 4.9 - 3.1 - 12

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Security Characteristics Equities by Style as a % of Total Equity Assets Valuation Multiples Value Core Growth Portfolio Maturity 7.16 22 20 22 Large Duration (Total) 5.06 Avg. Credit Quality AA Valuation Multiples Portfolio Benchmark Credit Quality 7 7 6 Medium P/E Ratio* 16.8 15.0 AAA 41.8% P/B Ratio* 2.1 2.0 AA 2.7% *Trailing 12 Months A 5.8% 6 7 2 Small BBB 5.3% Below BB 0.0% Not Rated/NA 44.3% Portfolio Allocation B h enchmark Allocation 31.1% 0.4% 32.0% Cash US Stocks Non-US Stocks Bonds 16.9% 51.6% 54.0% 14.0% 13

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Sector Allocations – as a % of total equities 18% 16% Dover OPEB 14% Benchmark* 12% 10% 8% 6% 4% 2% 0% Basic Consumer Financial Real Estate Telecom Energy Industrials Technology Consumer Healthcare Utilities Materials Cyclical Services Defensive R i egional Allocations – as a % of total equities 100% 90% Dover OPEB 80% Benchmark* 70% 60% 50% 40% 30% 20% 10% 0% *54% Russell 3000 / 32% Barclays Interm. Gov/Credit / 14% MSCI EAFE (Net). 14

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Domestic Equities

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Vanguard Value Index Signal as of June 30, 2011 Prospectus Investment Objective Returns-Based Equity Style Map The investment seeks to replicate, net of expenses, the MSCI US Prime Market Value Index. The fund generally invests all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. The index Sep-06 - Jun-11 measures the investment return of large-capitalization value stocks. Lg Value Lg Growth 1 Portfolio Information Portfolio Characteristics Small - Large Ticker VVISX Vanguard Value MSCI US Prime Equity Style Box Large-Value Index Signal Market Value 0 Total Fund Net Assets $15.6B Turnover Ratio 27% - % Assets in Top 10 Holdings 30.2% Total Number of Holdings 416 413 Manager Name Gerard C. O'Reilly P/E Ratio 14.3 13.1 -1 Manager Tenure 16.5 years Sm Value Sm Growth P/B Ratio 1.7 1.6 Fund Incept Date 11/02/1992 -1 0 1 Avg Mkt Cap $MM $46.6B - Value - Growth Expense Ratio 0.12% Vanguard Value Index Signal MSCI US Prime Market Value Capture Ratios Sep-06 - Jun-11 140 Top Ten Holdings Market Capitalizations 130 ExxonMobil Corporation 6.4% % Giant Cap Up Mkt Capture Ratio, % 120 Chevron Corporation 3.3% % Large Cap % Medium Cap 110 General Electric Company 3.2% % Small Cap AT&T, Inc. 2.7% 18.3% 100 53.2% % Micro Cap JP Morgan Chase & Co 2.7% 90 Procter & Gamble Company 2.6% 80 Johnson & Johnson 2.5% 70 Pfizer Inc. 2.5% 60 60 70 80 90 100 110 120 130 140 Wells Fargo Company 2.4% Down Mkt Capture Ratio, % Bank of America Corp 2.0% 28.3% Vanguard Value Index Signal MSCI US Prime Market Value Sector Allocations Batting Averages % Basic % Communication % Consumer % Consumer % % % Real % % % Financial % Materials Services Cyclical Defensive Healthcare Industrials Estate Technology Energy Services Utilities Sep-06 - Jun-11 25 1.0 21.1 0.9 20 0.8 Up Mkt Batting Average 17.3 0.7 15 13.0 0.6 11.4 0.5 10 8.2 0.4 6.2 5.6 6.1 5.3 0.3 5 2.8 3.1 0.2 0 0.1 0.0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Vanguard Value Index Signal Down Mkt Batting Average % Basic Materials % Communication Services % Consumer Cyclical % Consumer Defensive % Healthcare % Industrials % Real Estate % Technology % Energy % Financial Services % Utilities Vanguard Value Index Signal Please note: Fund returns are net of fees. Benchmark returns are gross of fees. 16

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American Funds Fundamental Investors R6 as of June 30, 2011 Prospectus Investment Objective Returns-Based Equity Style Map The investment seeks long-term growth of capital and income. The fund invests primarily in common stocks of companies that appear to offer superior opportunities for capital growth and most of which have a history of paying dividends. It may invest significantly in securities of issuers Jul-06 - Jun-11 domiciled outside the United States. Lg Value Lg Growth 1 Portfolio Information Portfolio Characteristics Small - Large Ticker RFNGX American Funds Russell Equity Style Box Large-Blend Fundamental Investors R6 1000 0 Turnover Ratio 32% - Total Fund Net Assets $54.2B Total Number of Holdings 244 985 % Assets in Top 10 Holdings 17.8% P/E Ratio 17.4 15.4 Manager Name James E. Drasdo -1 P/B Ratio 2.4 2.2 Sm Value Sm Growth Manager Tenure 26.9 years Avg Mkt Cap $MM $38.6B - -1 0 1 Fund Incept Date 08/01/1978 Value - Growth Expense Ratio 0.32% American Funds Fundamental Investors R6 S&P 500 TR Capture Ratios Jul-06 - Jun-11 140 Top Ten Holdings Market Capitalizations 130 Suncor Energy, Inc. 2.6% % Giant Cap Up Mkt Capture Ratio, % 120 Home Depot, Inc. 2.5% % Large Cap % Medium Cap 110 Merck & Co, Inc. 2.5% 47.4% 11.4% % Small Cap Union Pacific Corporation 1.7% 100 % Micro Cap Verizon Communications Inc 1.5% 90 Microsoft Corporation 1.4% 80 Bristol-Myers Squibb Company 1.4% 70 Syngenta AG 1.4% 60 60 70 80 90 100 110 120 130 140 The Dow Chemical Company 1.4% Down Mkt Capture Ratio, % Texas Instruments, Inc. 1.3% 40.6% American Funds Fundamental Investors R6 S&P 500 TR Sector Allocations Batting Averages % Basic % Communication % Consumer % Consumer % % % Real % % % Financial % Materials Services Cyclical Defensive Healthcare Industrials Estate Technology Energy Services Utilities Jul-06 - Jun-11 18 16.0 16.0 0.9 16 15.0 0.8 Up Mkt Batting Average 14 13.2 13.4 0.7 12 11.7 11.8 11.3 10.3 0.6 9.7 10.0 9.9 10.0 10 9.1 0.5 8 0.4 6 5.8 0.3 5.2 4.3 4 3.6 3.4 3.4 0.2 2.5 0.1 2 0.9 0.0 0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Down Mkt Batting Average American Funds Fundamental Investors R6 Russell 1000 American Funds Fundamental Investors R6 Please note: Fund returns are net of fees. Benchmark returns are gross of fees. 17

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Target Small Capitalization Value T as of June 30, 2011 Prospectus Investment Objective Returns-Based Equity Style Map The investment seeks above-average capital appreciation. The fund normally invests at least 80% of investable assets in common stocks of small companies which are those companies with market capitalizations comparable to those in the Russell 2000 Value Index. It may invest in stocks of Jul-06 - Jun-11 small companies that the advisor believes are undervalued and have an above-average potential to increase in price, given the company's sales, earnings, book value, cash flow and recent performance. Lg Value Lg Growth 1 Portfolio Information Portfolio Characteristics Small - Large Ticker TASVX Target Small Russell 2000 Equity Style Box Small-Blend Capitalization Value T Value 0 Total Fund Net Assets $1.0B Turnover Ratio 33% - % Assets in Top 10 Holdings 14.6% Total Number of Holdings 665 1,364 Manager Name Paul E. Viera, Jr. P/E Ratio 17.4 14.4 -1 Manager Tenure 9.5 years P/B Ratio 1.8 1.3 Sm Value Sm Growth Fund Incept Date 01/05/1993 Avg Mkt Cap $MM $2.0B - -1 0 1 Value - Growth Expense Ratio 0.76% Target Small Capitalization Value T Russell 2000 Value Capture Ratios Jul-06 - Jun-11 140 Top Ten Holdings Market Capitalizations 130 Prudential Core Invt 6.2% % Giant Cap Up Mkt Capture Ratio, % 120 PVH Corp 1.1% % Large Cap 40.2% 8.6% % Medium Cap 110 Aaron's, Inc. 1.1% % Small Cap Bucyrus International, Inc. A 1.0% 100 % Micro Cap The Scotts Miracle Gro Co 0.9% 90 Teleflex Inc. 0.9% 80 Silgan Holdings, Inc. 0.9% 70 Amerigroup Corporation 0.9% 60 60 70 80 90 100 110 120 130 140 Lufkin Industries, Inc. 0.8% Down Mkt Capture Ratio, % Valmont Industries, Inc. 0.8% 51.0% Target Small Capitalization Value T Russell 2000 Value Sector Allocations Batting Averages % Basic % Communication % Consumer % Consumer % % % Real % % % Financial % Materials Services Cyclical Defensive Healthcare Industrials Estate Technology Energy Services Utilities Jul-06 - Jun-11 25 1.0 22.4 0.9 20 19.9 0.8 Up Mkt Batting Average 18.2 0.7 0.6 15 0.5 11.7 12.0 11.4 11.3 10.0 9.4 0.4 10 8.3 0.3 7.4 6.1 6.1 6.4 5.2 5.4 0.2 5 3.7 3.7 4.0 3.2 0.1 1.3 0.4 0.0 0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Down Mkt Batting Average Target Small Capitalization Value T Russell 2000 Value Target Small Capitalization Value T Please note: Fund returns are net of fees. Benchmark returns are gross of fees. 18

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RidgeWorth Small Cap Value Equity I as of June 30, 2011 Prospectus Investment Objective Returns-Based Equity Style Map The investment seeks capital appreciation, and current income is a second consideration. The fund invests at least 80% of net assets in U.S. traded equity securities of small cap companies. U.S. traded equity securities may include American Depositary Receipts ("ADRs"). It targets companies with Jul-06 - Jun-11 market capitalizations similar to those of companies in the Russell 2000® Value Index. In addition, to implement the investment strategy, the fund may buy or sell, to a limited extent, derivative instruments. Lg Value Lg Growth 1 Portfolio Information Portfolio Characteristics Small - Large Ticker SCETX RidgeWorth Small Russell 2000 Equity Style Box Small-Blend Cap Value Equity I Value 0 Total Fund Net Assets $1.2B Turnover Ratio 72% - % Assets in Top 10 Holdings 28.2% Total Number of Holdings 97 1,364 Manager Name Brett Barner P/E Ratio 18.5 14.4 -1 Manager Tenure 14.4 years P/B Ratio 1.8 1.3 Sm Value Sm Growth Fund Incept Date 01/31/1997 Avg Mkt Cap $MM $1.8B - -1 0 1 Value - Growth Expense Ratio 1.21% RidgeWorth Small Cap Value Equity I Russell 2000 Value Capture Ratios Jul-06 - Jun-11 140 Top Ten Holdings Market Capitalizations 130 Cash America International, Inc. 3.8% % Giant Cap Up Mkt Capture Ratio, % 120 Cooper Companies 3.4% 36.3% % Large Cap % Medium Cap 110 Interface, Inc. A 3.3% 12.1% % Small Cap Progressive Waste Solutions Ltd 2.9% 100 % Micro Cap Aixtron SE ADR 2.9% 90 Guess, Inc. 2.7% 80 Valspar Corporation 2.4% 70 HCC Insurance Holdings Inc. 2.4% 60 60 70 80 90 100 110 120 130 140 Wolverine World Wide 2.2% Down Mkt Capture Ratio, % Snap-on, Inc. 2.1% 51.6% RidgeWorth Small Cap Value Equity I Russell 2000 Value Sector Allocations Batting Averages % Basic % Communication % Consumer % Consumer % % % Real % % % Financial % Materials Services Cyclical Defensive Healthcare Industrials Estate Technology Energy Services Utilities Jul-06 - Jun-11 30 1.0 27.6 0.9 25 0.8 Up Mkt Batting Average 22.4 0.7 20 17.9 0.6 16.7 0.5 15 12.4 12.0 0.4 11.4 11.3 10 0.3 8.0 6.7 7.0 6.4 0.2 6.1 5.2 5 3.7 3.7 4.0 0.1 1.3 1.2 1.8 0.0 0.8 0.0 0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Down Mkt Batting Average RidgeWorth Small Cap Value Equity I Russell 2000 Value RidgeWorth Small Cap Value Equity I Please note: Fund returns are net of fees. Benchmark returns are gross of fees. 19

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Global Equities

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American Funds New Perspective R6 as of June 30, 2011 Prospectus Investment Objective Returns-Based Equity Style Map The investment seeks capital appreciation and income. The fund normally invests in stocks of companies located around the world to take advantage of investment opportunities generated by changes in international trade patterns and economic and political relationships. In pursuing its primary Aug-06 - Jun-11 investment objective, it invests primarily in common stocks that the investment adviser believes have the potential for growth. In pursuing its secondary objective, the fund invests in common stocks of companies with the potential to pay dividends in the future. ACWI Lg Value ACWI Lg Growth 1 Portfolio Information Portfolio Characteristics Small-Large Ticker RNPGX American Funds New MSCI World Equity Style Box Large-Growth Perspective R6 (Net) 0 Total Fund Net Assets $47.9B Turnover Ratio 24% - % Assets in Top 10 Holdings 16.7% Total Number of Holdings 249 1,635 Manager Name Gregg E. Ireland P/E Ratio 17.0 13.9 -1 Manager Tenure 18.6 years P/B Ratio 2.4 1.8 ACWI Sm Value ACWI Sm Growth Fund Incept Date 03/13/1973 Avg. Mkt. Capitalization $42.6B - -1 0 1 Value-Growth Expense Ratio 0.46% American Funds New Perspective R6 MSCI World (Net) Capture Ratios Aug-06 - Jun-11 Top Ten Holdings Sector Allocations 140 18 Novo Nordisk A/S 4.0% % Basic Materials 120 Up Mkt Capture Ratio, % 16.1 EMC Corporation 1.8% 16 % Communication Services 100 Amazon.com, Inc. 1.6% 14 % Consumer Cyclical 12.8 12.8 12.7 % Consumer Defensive 80 Schneider Electric 1.6% 12 11.7 10.9 % Healthcare 60 Texas Instruments, Inc. 1.5% 10 9.6 % Industrials Barrick Gold Corporation 1.4% 40 % Real Estate 8 7.6 Google, Inc. 1.3% % Technology 20 Newmont Mining Corporation 1.2% 6 % Energy 0 4.2 % Financial Services 0 20 40 60 80 100 120 140 British American Tobacco PLC 1.2% 4 % Utilities Down Mkt Capture Ratio, % America Movil S.A.B. de C.V. ADR L 1.2% 2 1.0 American Funds New Perspective R6 0.5 0 MSCI World (Net) Market Capitalizations Developed/Emerging Market Allocations Batting Averages % Giant Cap 7.7% % Emerging Market Aug-06 - Jun-11 % Large Cap % Developed Country 8.6% % Medium Cap % Small Cap 0.5 Up Mkt Batting Average % Micro Cap 0.4 59.1% 0.3 0.2 0.1 32.0% 0.0 0.0 0.1 0.2 0.3 0.4 0.5 Down Mkt Batting Average 92.3% American Funds New Perspective R6 22

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Harding Loevner Global Equity Inst as of June 30, 2011 Prospectus Investment Objective Returns-Based Equity Style Map The investment seeks long-term capital. The fund invests in companies based in the U.S. and other developed markets, as well as in emerging and frontier markets. It invests at least 80% of net assets in common stocks, preferred stock, rights and warrants issued by companies that are based Aug-06 - Jun-11 both inside and outside the United States, securities convertible into such securities and investment companies that invest in the types of securities in which the fund would normally invest. The fund may also invest in derivatives. It normally holds 35-75 investments across at least 15 countries. ACWI Lg Value ACWI Lg Growth 1 Portfolio Information Portfolio Characteristics Small-Large Ticker HLMVX Harding Loevner MSCI ACWI Equity Style Box Large-Growth Global Equity Inst (Net) 0 Total Fund Net Assets $0.2B Turnover Ratio 35% - % Assets in Top 10 Holdings 27.7% Total Number of Holdings 67 2,459 Manager Name Ferrill Roll P/E Ratio 18.9 13.7 -1 Manager Tenure 10.4 years P/B Ratio 2.8 1.8 ACWI Sm Value ACWI Sm Growth Fund Incept Date 11/29/1996 Avg. Mkt. Capitalization $32.3B - -1 0 1 Value-Growth Expense Ratio 1.00% Harding Loevner Global Equity Inst MSCI ACWI (Net) Capture Ratios Aug-06 - Jun-11 Top Ten Holdings Sector Allocations 140 22 JP Morgan Chase & Co 3.2% 20.7 % Basic Materials 120 Up Mkt Capture Ratio, % 20 Wells Fargo Company 3.2% % Communication Services 18 100 17.3 Emerson Electric Co. 3.0% % Consumer Cyclical 16 15.6 % Consumer Defensive 80 Adobe Systems Inc. 2.9% 14 13.4 13.8 % Healthcare 60 Li & Fung Ltd. 2.7% 12 % Industrials Walgreen Company 2.7% 40 % Real Estate 10 EMC Corporation 2.7% % Technology 20 8 7.6 Teradata Corporation 2.6% 6.3 % Energy 0 6 5.2 % Financial Services 0 20 40 60 80 100 120 140 Schlumberger, Ltd. 2.5% 4 % Utilities Down Mkt Capture Ratio, % eBay, Inc. 2.4% 2 Harding Loevner Global Equity Inst 0.0 0.0 0.0 0 MSCI ACWI (Net) Market Capitalizations Developed/Emerging Market Allocations Batting Averages % Giant Cap 9.9% % Emerging Market Aug-06 - Jun-11 1.9% % Large Cap % Developed Country 0.4 % Medium Cap 45.6% % Small Cap Up Mkt Batting Average 14.3% % Micro Cap 0.3 0.2 0.1 0.0 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Down Mkt Batting Average 38.2% 90.1% Harding Loevner Global Equity Inst 23

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Fixed Income

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This material is for internal and/or client reporting purposes only and may not be used Advanced Analytics Page 1 of 1 as sales material or by broker/dealers in connection with the sale of any security. Release Date: 06-30-2011 Vanguard Total Bond Market Index Signal EQ Style FI Style Morningstar Category AA Data updated through 06-30-2011 - È High/Int Intermediate-term Bond Portfolio: Bond Quality Credit Quality % Credit Quality % Average AAA AA A BBB BB B Below B NR/NA As of 03-31-11 AA 75 5 10 10 0 0 0 0 2010 AA 77 4 10 9 0 0 0 0 2009 AA 77 4 10 9 0 0 0 0 2008 AA 81 3 9 7 0 0 0 0 ......................................................................................................................................................... Maturity and Duration Stated Maturity Range % Avg Eff Avg Eff Maturity Yr 1-3 Yr 3-5 Yr 5-7 Yr 7-10 Yr 10-15 Yr 15-20 Yr 20-30 Yr Duration As of 03-31-11 7.2 22.1 13.7 11.6 12.6 4.8 2.2 30.9 *5.1 2010 7.0 20.6 15.1 10.9 12.6 5.1 2.1 31.0 *5.0 2009 6.7 20.1 14.2 6.6 14.2 5.4 2.0 34.9 *4.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Coupon and Price Coupon Range % Avg Wtd Avg Wtd Coupon % 0,PIK 0-8 8-11 11-13 13-14.5 +14.5 NA Price As of 03-31-11 4.45 3.81 92.47 2.46 0.10 0.00 0.00 1.16 106.34 2010 4.49 4.38 91.91 2.53 0.10 0.00 0.00 1.08 107.08 2009 4.97 2.16 93.64 2.99 0.12 0.00 0.00 1.09 105.34 * Provided by fund © 1996-2011 Morningstar, Inc. All rights reserved. 22 W. Washington Street, Chicago, IL, 60602, 312-696-6000 Although data are gathered from reliable sources, Morningstar cannot guarantee completeness and accuracy. ß Principia™ 26

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Vanguard Total Bond Market Index Signal as of June 30, 2011 Cumulative Returns 11 Annual Return vs. Annual Std. Dev. 10 Jul-06 - Jun-11 9 7 Total Annualized Return, % 8 6 Total Annualized Return, % 7 5 6 4 5 3 4 2 3 1 2 0 0 5 1 Total Annualized StdDev, % 0 QTR 1 Year 3 Years 5 Years 10 Years Vanguard Total Bond Market Index Signal BC Aggregate Bond Vanguard Total Bond Market Index Signal BC Aggregate Bond Capture Ratios QTR YTD 1 Year 3 Years 5 Years 10 Years Jul-06 - Jun-11 Vanguard Total Bond Market Index Signal 2.3 2.5 3.7 6.4 6.5 5.5 100 BC Aggregate Bond 2.3 2.7 3.9 6.5 6.5 5.7 Up Mkt Capture Ratio, % 80 Peer Group Rankings: Vanguard Total Bond Market Index Signal 17 70 81 63 44 50 60 BC Aggregate Bond 16 59 76 62 45 36 40 Consecutive Returns 30 20 25 0 20 0 20 40 60 80 100 Down Mkt Capture Ratio, % 15 Total Return, % 10 Vanguard Total Bond Market Index Signal BC Aggregate Bond 5 Batting Averages 0 Jul-06 - Jun-11 -5 0.5 -10 -15 0.4 Up Mkt Batting Average -20 2010 2009 2008 2007 2006 2005 2004 2003 2002 0.3 Vanguard Total Bond Market Index Signal BC Aggregate Bond 0.2 2010 2009 2008 2007 2006 2005 2004 2003 2002 0.1 Vanguard Total Bond Market Index Signal 6.5 6.0 5.1 7.0 4.3 2.4 4.2 4.0 8.3 BC Aggregate Bond 6.5 5.9 5.2 7.0 4.3 2.4 4.3 4.1 10.3 0.0 0.0 0.1 0.2 0.3 0.4 0.5 Peer Group Rankings: Down Mkt Batting Average Vanguard Total Bond Market Index Signal 69 87 14 14 41 27 44 65 62 Vanguard Total Bond Market Index Signal BC Aggregate Bond 69 88 13 1 38 25 39 59 14 28

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This material is for internal and/or client reporting purposes only and may not be used Advanced Analytics Page 1 of 1 as sales material or by broker/dealers in connection with the sale of any security. Release Date: 06-30-2011 PIMCO Total Return Instl EQ Style FI Style Morningstar Category AA Data updated through 06-30-2011 - - Intermediate-term Bond Portfolio: Bond Quality Credit Quality % Credit Quality % Average AAA AA A BBB BB B Below B NR/NA As of 12-31-09 A 66 8 13 9 2 1 1 0 2008 A 67 10 15 4 3 0 1 0 2007 A 65 15 8 4 7 1 0 0 2006 A 73 10 6 6 3 2 0 0 ......................................................................................................................................................... Maturity and Duration Stated Maturity Range % Avg Eff Avg Eff Maturity Yr 1-3 Yr 3-5 Yr 5-7 Yr 7-10 Yr 10-15 Yr 15-20 Yr 20-30 Yr Duration As of 12-31-10 7.1 22.4 15.2 4.6 5.7 1.7 3.8 21.2 *5.0 2009 6.0 26.6 6.9 15.0 9.2 2.5 1.6 30.4 *4.7 2008 3.7 24.8 5.2 1.6 6.3 2.7 1.4 46.4 *3.4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Coupon and Price Coupon Range % Avg Wtd Avg Wtd Coupon % 0,PIK 0-8 8-11 11-13 13-14.5 +14.5 NA Price As of 12-31-10 4.86 12.37 77.15 3.83 5.04 0.22 0.01 1.39 0.00 2009 4.68 17.38 75.40 4.31 1.22 0.40 0.04 1.29 101.41 2008 5.08 0.42 98.62 0.34 0.03 0.00 0.00 0.59 98.92 * Provided by fund © 1996-2011 Morningstar, Inc. All rights reserved. 22 W. Washington Street, Chicago, IL, 60602, 312-696-6000 Although data are gathered from reliable sources, Morningstar cannot guarantee completeness and accuracy. ß Principia™ 29

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PIMCO Total Return Instl as of June 30, 2011 Cumulative Returns 11 Annual Return vs. Annual Std. Dev. 10 Jul-06 - Jun-11 9 9 Total Annualized Return, % 8 8 Total Annualized Return, % 7 7 6 6 5 5 4 3 4 2 3 1 2 0 0 5 1 Total Annualized StdDev, % 0 QTR 1 Year 3 Years 5 Years 10 Years PIMCO Total Return Instl BC Aggregate Bond PIMCO Total Return Instl BC Aggregate Bond Capture Ratios QTR YTD 1 Year 3 Years 5 Years 10 Years Jul-06 - Jun-11 PIMCO Total Return Instl 1.9 3.0 5.9 9.5 8.9 7.4 140 BC Aggregate Bond 2.3 2.7 3.9 6.5 6.5 5.7 120 Up Mkt Capture Ratio, % Peer Group Rankings: 100 PIMCO Total Return Instl 59 43 32 9 2 3 80 BC Aggregate Bond 16 59 76 62 45 36 60 Consecutive Returns 40 30 20 25 0 20 0 20 40 60 80 100 Down Mkt Capture Ratio, % 15 Total Return, % 10 PIMCO Total Return Instl BC Aggregate Bond 5 Batting Averages 0 Jul-06 - Jun-11 -5 0.8 -10 0.7 -15 Up Mkt Batting Average 0.6 -20 0.5 2010 2009 2008 2007 2006 2005 2004 2003 2002 0.4 PIMCO Total Return Instl BC Aggregate Bond 0.3 2010 2009 2008 2007 2006 2005 2004 2003 2002 0.2 PIMCO Total Return Instl 8.8 13.8 4.8 9.1 4.0 2.9 5.1 5.6 10.2 0.1 BC Aggregate Bond 6.5 5.9 5.2 7.0 4.3 2.4 4.3 4.1 10.3 0.0 0.0 0.1 0.2 0.3 0.4 0.5 Peer Group Rankings: Down Mkt Batting Average PIMCO Total Return Instl 24 41 15 1 58 7 14 30 16 PIMCO Total Return Instl BC Aggregate Bond 69 88 13 1 38 25 39 59 14 31

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Glossary Batting Average: Defined as the number of periods that the product outperforms the benchmark divided by the total number of periods for the entire evaluation period. It is a percentage indicating the probability of “value-added” performance by the product compared to the benchmark in a given date range. Down Market Capture Return: A measure of the manager’s performance in down markets relative to the market itself. This is an annualized semi-variance rate of return that represents a gain or loss generated during the market down periods. The return for the market for each quarter is considered a down market quarter if it is less than zero. Using those down quarters, the returns for the manager for all down quarters are linked and annualized to get this number. Please note that just because the market performance is down does not mean that the performance of the manager is down as well. Growth Equity: Equities that exhibit higher capital appreciation and earnings growth characteristics than the broad market. The issuing companies tend to have high earnings reinvestment rates and therefore, pay out little dividend. Growth stocks yp typically have high price-to-book ratios, high price-to-earnings ratios, high earnings growth rates, and low dividend yield. Market Capitalization: The product of the stock’s price per share by its number of shares outstanding. Price-to-Book Ratio: The ratio of current market price to the company’s latest reported book price per share. Price-to-Earnings Ratio: This ratio is the market price divided by the trailing twelve months’ earnings per share (EPS). Rate of Return: It is a tool for indicating and measuring performance, including appreciation (or depreciation), realized capital gains (or losses), and income. Indices are computed and then forward-linked to calculate a rate of return for the period under study for any type of weighting, i.e. time weighted, dollar weighted, etc. Returns can be calculated for any time period with a quarterly multiple factor. Most recent quarter represents three fiscal months. Standard Deviation: A measure of dispersion about an average in applied statistics. It is a good measure of the historical variability of the return earned by an investment manager. The assumption is the greater variability in the rate of return connotes greater risk undertaken in achieving the return. For example, one would prefer a portfolio that earns 5% each period to one that alternates between a return of zero in one period and 10% the next. A general rule is that, for any given rate of return, the lower the standard deviation the better; similarly, for any given standard deviation, the manager who provides the highest rate of return is best. Up Market Capture Return: A measure of the manager’s performance in up markets relative to the market itself. This is an annualized semi-variance rate of return that represents a gain or loss generated during the market up periods. The return for the market for each quarter is considered an up market quarter if it is greater than zero. Using those up quarters, the returns for the manager for all up quarters are linked and annualized to get this number. Please note that just because the market performance is up does not mean that the performance of the manager is up as well. Value Equity: Equities that are perceived to be undervalued relative to the broad market, and therefore have potential for capital appreciation in the future. Value equities are usually purchased when their price-to-book and price-to-earnings ratios are low; they tend to pay out earnings in dividends, therefore their dividend yield is higher than the market. 32

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