U.S. Economy

Fixed Income Markets U.S. Equity Markets International Equity Markets Hedge Fund Markets Real Estate Markets Private Equity and Hedge Fund Markets

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Marquette Associates Market Environment

January 2010

MMM

U.S. Economic Environment - January 31, 2010

Gross Domestic Product

Unemployment Data

-7%

-5%

-3%

-1%

1%

3%

5%

7% Real GDP Quarterly Percentage Change(seasonally adjusted at annual rates)

10 0%

10.5%

11.0% Unemployment Rate (%)

The "advance" estimate for fourth quarter GDP was released at 5.7% - the highest GDP reading since the third quarter of 2003. Gross privatedomestic investment (39.3%), exports (18.1%), and personal consumption expenditures (2%) were the largest contributors to GDP growth.Private inventory investment added 3.4% to fourth quarter GDP as businesses increased inventory levels following steady reductionsthroughout 2008. Investments in business equipment and software increased by 13.3%, the largest increase in almost four years. For 2009,the economy shrunk by 2.4%. This is the largest annual decrease of GDP in 63 years and the first annual decline since 1991.

The unemployment rate fell to 9.7% in January, decreasing by 0.3% from the prior month. The Labor Department's annual benchmarkrevision found that the economy lost an additional 1.4M jobs since the recession began in December 2007. Currently the number ofunemployed is 9.3M and the number of long-term unemployed is 6.3M. The non-farm payroll, the net number of non-farm jobs added orsubtracted per month, lost 20,000 jobs in January. Job losses were largest in construction and transportation and warehousing. Temporaryhelp services and retail trade had job growth. Payroll employment has fallen by 8.4M since December 2007. November non-farm payrollemployment was revised to show 60,000 new jobs added, while the December measure had a revision which was lower by 65,000.

-1250-250750

0100200

Tra

Non-Farm Payroll (000's)(Net Jobs Created)

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

Contribution to "advance" Fourth Quarter GDP: 5.7%

Personal consumption expenditures

Gross private domestic investment

Net exports of goods and services

Government consumption expenditures and gross investment

Commodities

-7%

-5%

-3%

-1%

1%

3%

5%

7% Real GDP Quarterly Percentage Change(seasonally adjusted at annual rates)

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

Jan-09 Apr-09 Jul-09 Oct-09 Jan-10

Unemployment Rate (%)

The "advance" estimate for fourth quarter GDP was released at 5.7% - the highest GDP reading since the third quarter of 2003. Gross privatedomestic investment (39.3%), exports (18.1%), and personal consumption expenditures (2%) were the largest contributors to GDP growth.Private inventory investment added 3.4% to fourth quarter GDP as businesses increased inventory levels following steady reductionsthroughout 2008. Investments in business equipment and software increased by 13.3%, the largest increase in almost four years. For 2009,the economy shrunk by 2.4%. This is the largest annual decrease of GDP in 63 years and the first annual decline since 1991.

The unemployment rate fell to 9.7% in January, decreasing by 0.3% from the prior month. The Labor Department's annual benchmarkrevision found that the economy lost an additional 1.4M jobs since the recession began in December 2007. Currently the number ofunemployed is 9.3M and the number of long-term unemployed is 6.3M. The non-farm payroll, the net number of non-farm jobs added orsubtracted per month, lost 20,000 jobs in January. Job losses were largest in construction and transportation and warehousing. Temporaryhelp services and retail trade had job growth. Payroll employment has fallen by 8.4M since December 2007. November non-farm payrollemployment was revised to show 60,000 new jobs added, while the December measure had a revision which was lower by 65,000.

The price of crude oil finished January at $72.89 per barrel, a decrease of 8.2% from the previous month. January's fall in the price of crude oilis the result of several factors including a stronger dollar, concerns that China may begin trying to slow its economic growth, possible creditdowngrades of major economies, and a report which shows that OPEC nations are not adhering to their production quotas. The price of golddecreased by 2.3% in January finishing the month at $1078.5/oz. Gold closed at an all-time high of $1,218.30/oz in December.

-8250-7250-6250-5250-4250-3250-2250-1250-250750

-900-800-700-600-500-400-300-200-100

0100200

Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10

Trailing 12 Months C

hange

Mon

th C

hang

e

Non-Farm Payroll (000's)(Net Jobs Created)

Monthly Non-Farm Payroll ChangeTotal Non-Farm Jobs Added Over Past 12 Months

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

Contribution to "advance" Fourth Quarter GDP: 5.7%

Personal consumption expenditures

Gross private domestic investment

Net exports of goods and services

Government consumption expenditures and gross investment

$350

$450

$550

$650

$750

$850

$950

$1,050

$1,150

$1,250

$35

$55

$75

$95

$115

$135

$155

Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

West Texas Intermediate Crude Oil Price

London PM Fix Gold Price

Prepared by Marquette Associates, Inc. M1

Month Qtr. YTD 1 Year 3 Year 5 Year 10 YearBroad Market Indices

BarCap Universal 1.5% 1.5% 1.5% 10.9% 6.3% 5.2% 6.6%BarCap Aggregate 1.5% 1.2% 1.5% 8.5% 6.6% 5.2% 6.5%BarCap Gov./Credit 1.5% 1.0% 1.5% 7.7% 6.4% 4.9% 6.5%

Intermediate IndicesBarCap Int. Aggregate 1.5% 1.4% 1.5% 8.3% 6.6% 5.2% 6.3%BarCap Int. Gov./Credit 1.4% 1.3% 1.4% 7.1% 6.4% 4.9% 6.1%

Government Only IndicesBarCap U.S. Treasury 1.6% 0.3% 1.6% 0.9% 6.8% 5.0% 6.3%BarCap Long Gov. 2.6% -1.5% 2.6% -2.2% 7.0% 5.2% 7.7%BarCap Government 1.5% 0.4% 1.5% 1.8% 6.7% 5.1% 6.3%BarCap Int. Government 1.3% 0.7% 1.3% 2.3% 6.5% 5.0% 5.8%BarCap Mortgage 1.3% 1.2% 1.3% 7.1% 7.5% 5.9% 6.7%BarCap 1-3 Year Gov. 0.7% 0.6% 0.7% 2.4% 5.2% 4.3% 4.7%91 Day T-Bill 0.0% 0.1% 0.0% 0.4% 2.4% 3.1% 3.0%BarCap U.S. TIPS 1.6% 2.2% 1.6% 11.3% 7.2% 5.0% 7.8%

Corporate Bond IndicesBarCap U.S. Credit 1.6% 2.0% 1.6% 17.8% 6.3% 4.8% 6.8%BarCap High Yield 1.3% 5.6% 1.3% 51.2% 6.0% 6.8% 6.9%50% BB/50% B 1.1% 4.3% 1.1% 37.2% 5.2% 6.0% 6.6%CSFB Leveraged Loan Index 1.8% 4.8% 1.8% 39.4% 2.0% 3.9% 4.4%

Fixed Income Market Environment - January 31, 2010

Benchmark Annualized Performance

The massive rally in spread sectors took a pause in January, as concerns about the sustainability of the global economic recovery caused investors to seek the relative safety of higher quality fixed income securities. This was the first month since March of 2009 that Treasuries outperformed similar duration corporate bonds. Within the investment grade space, CMBS (+4.4%), ABS (+1.8%), and Treasuries (+1.6%) were the best performing sectors for the month.

Investment grade corporate bonds (+1.6%), high yield corporate bonds (+1.3%), and leveraged loans (+1.8%) posted strong returns in January. In a reversal of recent trends, longer duration bonds outperformed their shorter duration counterparts, and higher quality corporate bonds outperformed their lower quality counterparts

Month Qtr. YTD 1 Year 3 Year 5 Year 10 YearBarCap Corporate AAA 2.0% 1.1% 2.0% 3.8% 3.8% 3.5% 6.1%BarCap Corporate AA 1.1% 0.9% 1.1% 12.2% 5.6% 4.5% 6.7%BarCap Corporate A 1.5% 1.7% 1.5% 17.1% 4.9% 4.0% 6.3%BarCap Corporate BBB 2.1% 3.7% 2.1% 28.3% 7.5% 5.4% 7.1%BarCap Corporate BB 1.1% 4.6% 1.1% 37.4% 7.3% 6.9% 7.8%BarCap Corporate B 1.0% 4.0% 1.0% 37.0% 3.0% 5.0% 5.4%BarCap Corporate CCC 1.7% 7.7% 1.7% 84.9% 1.7% 5.1% 5.1%

Corporate Quality Indices Annualized Performance

The massive rally in spread sectors took a pause in January, as concerns about the sustainability of the global economic recovery caused investors to seek the relative safety of higher quality fixed income securities. This was the first month since March of 2009 that Treasuries outperformed similar duration corporate bonds. Within the investment grade space, CMBS (+4.4%), ABS (+1.8%), and Treasuries (+1.6%) were the best performing sectors for the month.

Investment grade corporate bonds (+1.6%), high yield corporate bonds (+1.3%), and leveraged loans (+1.8%) posted strong returns in January. In a reversal of recent trends, longer duration bonds outperformed their shorter duration counterparts, and higher quality corporate bonds outperformed their lower quality counterparts.

The flight to quality caused Treasuries to rally in January, resulting in lower yields across the curve. Yields fell more on the short end of thecurve than on the long end of the curve causing a steeper yield curve. The yield difference between 2 year Treasuries and 10 year Treasuriesfinished the month at 277 basis points, just below the all time record of 285 basis points that was set in early December, 2009.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0.0 0.5 2.0 3.0 5.0 10.0 30.0

Jan-10

Jan-09

Dec-09

Yield Curve

Years

Prepared by Marquette Associates, Inc. M2

Month Qtr. YTD 1 Year 3 Year 5 Year 10 YearBroad Market Indices

Dow Jones (10,067.33) -3.3% 4.4% -3.3% 29.8% -4.6% 1.8% 1.5%Wilshire 5000 -3.4% 4.7% -3.4% 34.9% -6.9% 0.8% -0.2%Russell 3000 -3.6% 4.8% -3.6% 35.0% -7.2% 0.6% -0.2%

Large-Cap Market IndicesS&P 500 (1,073.87) -3.6% 4.2% -3.6% 33.1% -7.2% 0.2% -0.8%Russell 1000 -3.6% 4.6% -3.6% 34.8% -7.1% 0.6% -0.4%Russell 1000 Value -2.8% 4.5% -2.8% 31.4% -10.2% -0.5% 2.5%Russell 1000 Growth -4.4% 4.6% -4.4% 37.9% -4.1% 1.4% -4.0%

Mid-Cap Market IndicesRussell MidCap -3.3% 7.1% -3.3% 46.6% -6.7% 2.2% 5.0%Russell MidCap Value -2.7% 7.5% -2.7% 45.6% -8.4% 1.9% 7.9%Russell MidCap Growth -4.0% 6.7% -4.0% 47.1% -5.6% 2.1% -0.9%

Small-Cap Market IndicesRussell 2000 -3.7% 7.3% -3.7% 37.8% -7.7% 0.6% 3.3%Russell 2000 Value -2.9% 7.7% -2.9% 36.5% -9.6% 0.2% 8.2%Russell 2000 Growth -4.5% 6.9% -4.5% 39.0% -6.0% 0.9% -1.7%

U.S. Equity Market Environment - January 31, 2010

U.S. Equity Index Annualized Performance

January at a Glance via the S&P 5001

The broad equity market took a sharp dip in the second half of January as economic uncertainty overshadowed 4Q earnings reports. The S&P 500(-3.6%) posted its worst loss since February 2009. Significant detractors were negative housing data, worries of possible default on Greece'ssovereign debt, higher central bank lending rates in China, unimproved job reports, fear over future banking reform, and worries that BenBernanke would be ousted as Fed Chairman. The myriad of economic concerns punished stocks despite over 70% of S&P 500 companiesreporting earnings above expectations. Most signals indicated that investors did not have confidence that improved company revenues couldcontinue without marked improvement in the job market. Growth stocks, which had greatly outperformed value stocks in 2009, were hit harder asthe equity markets dropped in January.

1,250

1,300

Apple reported sales up 32%. Berkshire was announced as

The Unemployment

Rate remained at Ben Bernanke was

Citi posted a loss. Health Care stocks rallied on the potential Rep victory in

Month Qtr. YTD 1 Year 3 Year 5 Year 10 YearConsumer Staples -1.1% 2.6% -1.1% 22.9% 2.5% 5.1% 5.8%Consumer Discretionary -2.9% 8.5% -2.9% 53.4% -8.3% -1.7% -0.7%Energy -4.5% -2.3% -4.5% 12.2% -1.0% 8.6% 9.2%Financials -1.4% 1.4% -1.4% 56.9% -25.3% -11.4% -2.4%Health Care 0.5% 12.1% 0.5% 21.8% -1.2% 3.3% 2.1%Industrials -1.2% 9.2% -1.2% 36.8% -7.4% -0.8% 1.6%Information Technology -8.4% 1.7% -8.4% 52.8% -1.2% 2.5% -7.1%Materials -8.6% 3.6% -8.6% 46.3% -4.7% 2.9% 5.1%Telecommunications -8.2% 2.3% -8.2% 11.0% -9.2% 1.5% -7.2%Utilities -4.9% 5.2% -4.9% 7.1% -3.3% 4.6% 3.3%1 Source: Todd, Jason. In the Flow - January 2010; February 1, 2010; p. 4.

S&P Industry Sector Performance

The broad equity market took a sharp dip in the second half of January as economic uncertainty overshadowed 4Q earnings reports. The S&P 500(-3.6%) posted its worst loss since February 2009. Significant detractors were negative housing data, worries of possible default on Greece'ssovereign debt, higher central bank lending rates in China, unimproved job reports, fear over future banking reform, and worries that BenBernanke would be ousted as Fed Chairman. The myriad of economic concerns punished stocks despite over 70% of S&P 500 companiesreporting earnings above expectations. Most signals indicated that investors did not have confidence that improved company revenues couldcontinue without marked improvement in the job market. Growth stocks, which had greatly outperformed value stocks in 2009, were hit harder asthe equity markets dropped in January.

The Health Care sector (+0.5%) was the only sector up in January as changes in the political landscape were viewed positively. Although overall,Financials (-1.4%) fell for the month, the Banking subsector was up 9.0% after Citi, Goldman, and JPM beat earnings expectations considerably.Materials (-8.6% ) was the worst performing sector, though the sector's 2010 earnings outlook increased by an average of 2.1% during the month.

1,115 1,074

1,000

1,050

1,100

1,150

1,200

1,250

1,300

12/31 1/3 1/6 1/9 1/12 1/15 1/18 1/21 1/24 1/27

Apple reported sales up 32%. Berkshire was announced as replacement for

Burlington Northern in S&P 500

Obama proposed limits on the size and scope of banks. Uncertainty over Ben Bernanke's future also contributed to the market selloff

Nonfarm payrolls decreased by 85,000 in

December

China's central bank tightened

lending

The Unemployment

Rate remained at 10.0% for December

Obama proposed fee on banks to recoup

bailout funds

FOMC left rates unchanged at near

zero percent

Ben Bernanke was reconfirmed as Fed

Chairman. Ford posted $2.7B in net

income for 2009

Citi posted a loss. Health Care stocks rallied on the potential Rep. victory in

the the Senate

Prepared by Marquette Associates, Inc. M3

Month Qtr. YTD 1 Year 3 Year 5 Year 10 YearMSCI ACWI ex U.S. -4.9% 0.0% -4.9% 48.3% -4.8% 5.6% 3.2%MSCI EAFE (in US $) -4.4% -1.0% -4.4% 40.4% -7.2% 3.5% 1.8%MSCI EAFE (Local) -3.4% 2.1% -3.4% 29.1% -9.5% 2.6% -0.6%MSCI EAFE Value -4.6% -2.0% -4.6% 45.0% -8.4% 3.3% 4.3%MSCI EAFE Growth -4.2% -0.1% -4.2% 36.0% -6.0% 3.6% -0.9%Citi Global ex U.S. < $2 Billion -2.4% 2.4% -2.4% 68.9% -3.0% 7.2% 8.0%Citi World ex U.S. < $2 Billion -1.7% 0.5% -1.7% 51.7% -6.9% 4.2% 7.1%Citi EMI Global ex U.S. -2.6% 2.1% -2.6% 64.4% -5.3% 6.4% 6.9%Citi EMI World ex U.S. -2.0% 0.8% -2.0% 53.0% -7.6% 4.5% 6.0%MSCI Emerging Markets -5.6% 2.4% -5.6% 80.7% 3.8% 14.5% 9.4%MSCI Frontier Markets -2.1% -8.9% -2.1% 33.8% -11.3% 1.0% ---

International Equity Market Environment - January 31, 2010

International Equity Index Annualized Performance

Country Returns

In January, international retreated from their positive 2009 returns as the MSCI ACWI ex U.S. index lost 4.9% for the month. Small-caps outperformed large-caps, while frontier markets outpaced emerging markets. Growth outperformed value stocks for the fifth consecutive month. The U.S. dollar strengthened against most major foreign currencies, with the Japanese yen acting as the only currency appreciating versus the dollar at 2.7% for the month.

Globally, returns mostly took a step back, with exceptions being Chile, Morocco, and Japan. Brazil depreciated the most at -10.9% for the month,with China and Germany also experiencing significant losses at -8.6%.

MonthCanadaUSAMexico

EuropeFranceGermanyUKSwitzerland

-7.4%-3.6%-6.2%

Pacific

JapanUKFranceGermanySwitzerland

25%20%11%

9%8%

51.0%33.1%68.3%

10.6%0.2%

14.6%

1 Yr. 5 Yr.

Top Five Weights in EAFE

Month-5.9%-7.4%-8.6%-4.8%-3.3%

44.7%43.9%38.9%45.5%39.3%

3.6%4.2%6.1%1.6%7.1%

1 Yr. 5 Yr.

Month-1.4% 32.5% 3.1%

1 Yr. 5 Yr.

1 Yr 5 YrMonth 5 Yr

Australasia -16% World Capitalization

Europe -30% World Capitalization

January Global Equity Market PerformanceCountry U.S. dollar Local CurrencyMexico -6.2%Switzerland -3.3%Canada -7.4%Japan 1.9%France -7.4%U.S. -3.6%U.K. -4.8%Australia -7.0%Germany -8.6%Hong Kong -6.6%China -8.6%

-6.8%

-4.4%-0.8%-5.9%-1.4%

-8.5%-6.4%-5.7%-5.9%-4.1%-3.6%

In January, international retreated from their positive 2009 returns as the MSCI ACWI ex U.S. index lost 4.9% for the month. Small-caps outperformed large-caps, while frontier markets outpaced emerging markets. Growth outperformed value stocks for the fifth consecutive month. The U.S. dollar strengthened against most major foreign currencies, with the Japanese yen acting as the only currency appreciating versus the dollar at 2.7% for the month.

The Japanese yen was the only major foreign currency to appreciate vs. the U.S. dollar, increasing 2.7% for the month.

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%MSCI EAFE Pound Euro Yen

Translation Effect vs. the U.S. dollar

Month YTD 1 Year 5 Year 10 Year

Globally, returns mostly took a step back, with exceptions being Chile, Morocco, and Japan. Brazil depreciated the most at -10.9% for the month,with China and Germany also experiencing significant losses at -8.6%.

Japan depreciated the least at the local level, and was positive when measured in U.S. dollars.

MonthCanadaUSAMexico

EuropeFranceGermanyUKSwitzerland

MoroccoS. Africa

AustraliaNew Zealand

-7.4%-3.6%-6.2%

L. AmericaChileBrazil

PacificChinaHong KongJapanIndia

JapanUKFranceGermanySwitzerland

25%20%11%

9%8%

51.0%33.1%68.3%

10.6%0.2%

14.6%

1 Yr. 5 Yr.

Top Five Weights in EAFE

Month-8.9%3.2%

-10.9%

86.5%73.9%94.6%

24.6%20.6%30.5%

1 Yr. 5 Yr.

Month-5.9%-7.4%-8.6%-4.8%-3.3%

44.7%43.9%38.9%45.5%39.3%

3.6%4.2%6.1%1.6%7.1%

1 Yr. 5 Yr.

Month-1.4%-8.6%-6.6%1.9%

-5.3%

32.5%62.0%48.9%16.3%96.0%

3.1%22.2%8.7%0.2%

20.0%

1 Yr. 5 Yr.

21.0%12.4%

1 Yr. 5 Yr.Month4.3%

-5.3%17.4%71.0%

5 Yr.

Month-7.0%-6.0%

89.4%55.8%

10.6%-2.0%

1 Yr. 5 Yr.

MSCI EAFE Index Countries Highlighted in Red

Canada and the U.S. -54% World Capitalization

Australasia -16% World Capitalization

Europe -30% World Capitalization

Prepared by Marquette Associates, Inc. M4

Month Qtr. YTD 1 Year 3 Year 5 Year 10 YearHFRX Global 0.0% 2.2% 0.0% 12.1% -3.7% 0.6% 4.3%HFRX Hedged Equity -0.8% 2.1% -0.8% 12.4% -5.3% -0.2% 4.1%HFRI Composite -0.7% 2.1% -0.7% 19.3% 1.6% 5.6% 6.3%HFRI Fund of Funds -0.7% 0.9% -0.7% 9.9% -1.8% 2.6% 3.9%HFRI Equity Hedge -0.9% 2.8% -0.9% 24.6% -0.3% 4.5% 5.4%HFRI Event-Driven 0.9% 4.6% 0.9% 25.8% 1.5% 5.7% 8.0%HFRI Macro -2.2% -1.3% -2.2% 2.2% 5.8% 6.7% 7.3%HFRI Merger Arbitrage 0.3% 2.1% 0.3% 11.9% 3.7% 6.6% 6.2%HFRI Relative Value 1.5% 4.3% 1.5% 25.3% 4.0% 6.3% 7.3%

Jan-Jun. 2008 Jul-08 Aug-08Energy 8.90% -13.90% -0.50%Financials -29.70% 7.10% -1.10%Materials 1.30% -4.10% -2.60%Consumer Disc -13.20% 0.50% 7.20%

Benchmark Annualized Performance

Hedge Fund Market Environment - January 31, 2010

Ten Year Risk/Return

Hedge funds began 2010 with mixed performance as credit-focused managers posted gains while the declines in equities hurt managers with market exposure. Event-Driven managers built off a solid finish to 2009 with continued gains in distressed credit positions. Macro managers were mixed as gains made trading on sovereign debt positions were offset by losses in the currency markets. Merger arbitrage continued to provide gains as several deals were announced in January.

The chart below displays the risk and return characteristics of hedge funds versus some of the other traditional asset class benchmarks. Over thelast ten years, hedge funds have outperformed the U.S. and international equity markets with comparable volatility to fixed income.

HFR FOF

Hedged Equity

Event-DrivenGlobal Macro

Merger Arb.

Relative Value

HFRX Global

BarCap Agg.

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

turn Consumer Disc 13.20% 0.50% 7.20%

2005 40000000000 75000000002006 70000000000 550000000002007 1.05E+11 90000000000

Source: EurekahedgeSource: EurekaHedge

Hedge funds began 2010 with mixed performance as credit-focused managers posted gains while the declines in equities hurt managers with market exposure. Event-Driven managers built off a solid finish to 2009 with continued gains in distressed credit positions. Macro managers were mixed as gains made trading on sovereign debt positions were offset by losses in the currency markets. Merger arbitrage continued to provide gains as several deals were announced in January.

The charts below show the breakdown of assets among the different strategies in the hedge fund industry over the past three years. The mostpopular strategy has been hedged equity although the portion of assets devoted to the strategy has been steadily decreasing. Arbitrage strategieshave decreased as leverage has become less prevalent. Investors have increased their allocation to CTA/Managed Futures strategies for theirdiversification benefits. Single-strategy portfolios have also lost ground as multi-strategy funds have gained assets over the period.

The chart below displays the risk and return characteristics of hedge funds versus some of the other traditional asset class benchmarks. Over thelast ten years, hedge funds have outperformed the U.S. and international equity markets with comparable volatility to fixed income.

HFR FOF

Hedged Equity

Event-DrivenGlobal Macro

Merger Arb.

Relative Value

HFRX Global

S&P 500

BarCap Agg.

MSCI EAFE

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

Ret

urn

Standard Deviation

Hedged Equity,

36%

Fixed Income,

5%Event Driven,

8%Distressed Debt, 5%

CTA, 5%

Arbitrage, 14%

Relative Value, 2%

Other, 4%

Multi-Strategy,

14%

Macro, 7%

2007

Hedged Equity,

32%

Fixed Income,

4%Event Driven, 9%Distressed

Debt, 3%CTA, 9%

Arbitrage, 15%

Relative Value, 2%

Other, 3%

Multi-Strategy,

15%

Macro, 8%

2008

Hedged Equity, 28%

Fixed Income, 6%

Event Driven,

11%Distressed Debt, 3%CTA, 12%

Arbitrage, 10%

Relative Value, 2%

Other, 4%

Multi-Strategy,

19%

Macro, 5%

2009

Prepared by Marquette Associates, Inc. M5