NFI-ODCE NCREIF FUND INDEX - OPEN END DIVERSIFIED …12/31/2016 $217,798.5 $174,269.9 $167,453.5 21.7% 3.6% $3,186.6 $4,409.1 24 2,510 92.7% This information is proprietary and may

NFI-ODCE NCREIF FUND INDEX - OPEN END DIVERSIFIED CORE EQUITY 4q2016

NCREIFNat'l Council of Real Estate

Investment Fiduciaries

200 E. Randolph StreetSuite 5135

Chicago, IL 60601(312) 819-5890

www.NCREIF.org

Copyright by NCREIF 2017All rights reserved.

Released:

NFI-ODCENCREIF

Fund IndexOpen End

DiversifiedCore Equity

January 30, 2017

Debt Valuation Impact ........................................................................................ 1

ODCE Notification ............................................................................................... 2

Index Snapshot ..................................................................................................... 3

Index Overview .................................................................................................... 4

Equal Weight Index Overview ............................................................................. 5

Index Trends ......................................................................................................... 6

Percentile Supplement:

By Hold Periods ........................................................................................... 7

5 Year Hold Period Detail ............................................................................ 8

Funds List ............................................................................................................. 9

Index Policy .......................................................................................................... 10

Index Terms .......................................................................................................... 11

Definition

The NFI-ODCE is a capitalization-weighted, gross of fee, time-weighted return index with an inception date of December 31, 1977. Supplemental data is also provided, such as equal-weight and net of fee returns, for informational purposes and additional analysis. Open-end Funds are generally defined as infinite-life vehicles consisting of multiple investors who have the ability to enter or exit the fund on a periodic basis, subject to contribution and/or redemption requests, thereby providing a degree of potential investment liquidity. The term Diversified Core Equity style typically reflects lower risk investment strategies utilizing low leverage and generally represented by equity ownership positions in stable U.S. operating properties. The NFI-ODCE, like the NCREIF Property Index and other stock and bond indices, is a capitalization-weighted index based on each funds Net Invested Capital, which is defined as Beginning Market Value Net Assets (BMV), adjusted for Weighted Cash Flows (WCF) during the period. To the extent WCF are not available; which may be the case for older liquidated funds, BMV is used. Indices are typically capitalization-weighted, as they better represent the universe and the performance of the overall marketplace. Total Return of any capitalization-weighted Index is, therefore, more influenced by the larger funds (based on Net Invested Capital) included in the Index. Additional information, such as the equally-weighted NFI-ODCE, is also presented to show what the results would be if all funds were treated equally, regardless of size. This presentation is typically used for statistical purposes and peer-to-peer comparisons.

NFI-ODCE December 31, 2016Table of Contents

The gross of fee appreciation return for the one year period ended December 31, 2016 was 4.12%, consisting of 3.92% and 0.20% due to real estate and debt valuation, respectively. The equal weight Index for the same period reflects gross of fee appreciation of 4.46%, consisting of 4.26% and 0.19% due to real estate and debt valuation, respectively.

Page 1 of 11

NFI-ODCE December 31, 2016Debt Valuation Impact

An important characteristic of a good benchmark is for it to be specified in advance. NCREIF will therefore provide advance notice of at least one quarter with regard to including new funds or excluding existing funds in the ODCE Index.

No new funds were included this quarter.

No funds have been excluded in the current quarter

EXCLUSION NOTICE

INCLUSION NOTICE

Page 2 of 11

NFI-ODCE December 31, 2016ODCE Notification

NFI-ODCE Fund IndexCurrent Qtr

(a)Previous Qtr

(b)Change(a - b) 1Year 3 Years 5 Years 10 Years

SI (*)(39 Years)

Income 1.07% 1.12% -0.05% 4.50% 4.76% 4.99% 5.32% 7.31%

Appreciation 1.04% 0.94% 0.10% 4.12% 7.03% 6.94% 0.46% 1.36%

Total, Gross of Fees 2.11% 2.07% 0.04% 8.77% 12.07% 12.21% 5.82% 8.75%

Total, Net of Fees 1.88% 1.83% 0.05% 7.79% 11.04% 11.16% 4.84% 7.68%

Fund Count 24 24 0

($millions)Current Qtr

(c)Previous Qtr

(d)% Change[(c - d) / d]

Ending Assets ⁽ᴰ⁾ 167,453.5 165,483.7 1.19%

Other Indices(Total Return, Gross of Fees)

Current Qtr(a)

Previous Qtr(b)

Change(a - b) 1Year 3 Years 5 Years 10 Years

SI (*)(39 Years)

NAREIT Equity REIT Index -3.28% -1.21% -2.07% 8.63% 12.66% 11.98% 5.07% 12.80%

Russell 3000 4.21% 4.40% -0.19% 12.74% 8.44% 14.67% 7.08% N/A

S&P 500 Index 3.82% 3.85% -0.03% 11.96% 8.87% 14.66% 6.95% 11.52%

T-Bills (90 day) 0.07% 0.06% 0.01% 0.23% 0.10% 0.08% 0.72% 4.83%

NCREIF Property Index(NPI) 1.73% 1.77% -0.04% 7.97% 11.02% 10.92% 6.93% 9.29%

NFI-ODCE Equal WeightCurrent Qtr

(a)Previous Qtr

(b)Change(a - b) 1Year 3 Years 5 Years 10 Years

SI (*)(39 Years)

Income 1.10% 1.17% -0.07% 4.65% 4.85% 5.05% 5.31% 7.37%

Appreciation 1.06% 1.01% 0.05% 4.46% 7.13% 6.90% 0.30% 0.91%

Total, Gross of Fees 2.16% 2.18% -0.02% 9.27% 12.25% 12.22% 5.63% 8.33%

Total, Net of Fees 1.95% 1.96% -0.01% 8.36% 11.29% 11.23% 4.70% 7.31%* The NFI-ODCE Index begins as of the first quarter of 1978, inclusive. "NA" indicates that historical data is not available since NFI-ODCE Index inception.Note: The NFI-ODCE, like the NCREIF Property Index and other stock and bond indices, is a capitalization-weighted index based on each funds Indices are typically capitalization-weighted, as they better represent the universe and the performance of the overall marketplace. Total Return of any capitalization-weighted Index is, therefore, more influenced by larger funds (based on Net Invested Capital) included in the Index. Additional information, such as the equally-weighted NFI-ODCE, is also presented to show what the results would be if all funds were treated equally, regardless of size. This presentation is typically used for statistical puposes and peer-to-peer comparisons. This information is proprietary and may not be reported in whole or in part without written permission. The underlying data and text has been obtained from sources considered to be reliable; the information is believed to be accurate, but is not guaranteed. This report is for information purposes only and is not to be an offer, solicitation, or recommendation with respect to the purchase or sale of any security or a recommendation of the services supplied by any money management organization. Past performance is no guarantee of future results. For details about the NFI-ODCE and definition of terms, please refer to the Index Policy and Glossary included in this report.

Page 3 of 11

NFI-ODCE December 31, 2016Snapshot

Return %'s Index Values

Inc App Tot, Gross Total Net Total NPI Inc App Tot, Gross Total, Net Total NPI

Qua

rter

E

nds 12/31/2016 1.07% 1.04% 2.11% 1.88% 1.73% 1,564.5 169.6 2,634.1 1,792.6 3,194.3

9/30/2016 1.12% 0.94% 2.07% 1.83% 1.77% 1,548.0 167.8 2,579.6 1,759.5 3,139.9

Rol

ling

4 Q

uart

ers

12/31/2016 4.50% 4.12% 8.77% 7.79% 7.97%

9/30/2016 4.57% 5.32% 10.08% 9.08% 9.22%

The NFI-ODCE (NCREIF Fund Index -Open-end Diversified Core Equity) is fund level, presented gross and net of advisory fees, and includes property investment at ownership share, cash balances and leverage (i.e., returns reflect the fund's actual asset ownership positions and financing strategy). The NPI (NCREIF Property Index) is property level, before advisory fees and includes primarily core operating properties, excluding ownership and financing structures (i.e., returns are based on 100% of property operations and are unlevered). The NFI-ODCE Glossary of Terms and Index Policy are included in this report and details of the NPI can be found at www.NCREIF.org.

Balance Sheet and Diversification ($millions)

Gross RE Net RE Net Assets Leverage % Cash % Contribs Distribs # Funds # Invests Occupy %

12/31/2016 $217,798.5 $174,269.9 $167,453.5 21.7% 3.6% $3,186.6 $4,409.1 24 2,510 92.7%

This information is proprietary and may not be reported in whole or in part without written permission. The underlying data and text has been obtained from sources considered to be reliable; the information is believed to be accurate, but is not guaranteed. This report is for information purposes only and is not to be an offer, solicitation, or recommendation with respect to the purchase or sale of any security or a recommendation of the services supplied by any money management organization. Past performance is no guarantee of future results. For details about the NFI-ODCE and definition of terms, please refer to the Index Policy and Glossary included in this report.

Page 4 of 11

NFI-ODCE December 31, 2016Index Overview

Return %'s Index Values

Inc App Tot, Gross Total Net Total NPI Inc App Tot, Gross Total, Net Total NPI

Qua

rter

E

nds 12/31/16 1.10% 1.06% 2.16% 1.95% 1.73% 1,598.6 142.3 2,263.5 1,568.9 3,194.3

9/30/16 1.17% 1.01% 2.18% 1.96% 1.77% 1,581.2 140.8 2,215.6 1,538.8 3,139.9

Rol

ling

4 Q

uart

ers

12/31/16 4.65% 4.46% 9.27% 8.36% 7.97%

9/30/16 4.69% 5.72% 10.62% 9.69% 9.22%

The NFI-ODCE (NCREIF Fund Index -Open-end Diversified Core Equity) is fund level, presented gross and net of advisory fees, and includes property investment at ownership share, cash balances and leverage (i.e., returns reflect the fund's actual asset ownership positions and financing strategy). The NPI (NCREIF Property Index) is property level, before advisory fees and includes primarily core operating properties, excluding ownership and financing structures (i.e., returns are based on 100% of property operations and are unlevered). The NFI-ODCE Glossary of Terms and Index Policy are included in this report and details of the NPI can be found at www.NCREIF.org.

Balance Sheet and Diversification ($millions)

Gross RE Net RE Net Assets Leverage % Cash % Contribs Distribs # Funds # Invests Occupy %

12/31/16 $217,798.5 $174,269.9 $167,453.5 23.1% 3.0% $3,186.6 $4,409.1 24 2,510 92.6%


Page 5 of 11

NFI-ODCE December 31, 2016Equal Weight Index Overview

Value Weight Return %'s

# Funds Inc App Tot, Gross Total Net Tot NPI

Qua

rter

s

12/31/2016 24 1.07% 1.04% 2.11% 1.88% 1.73%

09/30/2016 24 1.12% 0.94% 2.07% 1.83% 1.77%

06/30/2016 24 1.12% 1.01% 2.13% 1.91% 2.03%

03/31/2016 24 1.11% 1.07% 2.18% 1.95% 2.21%

Equal Weight Return %'s Percentiles

Inc App Tot, Gross Tot Net Tot NPI Dispersion Max Top Quartile MedianBottom Quartile Min

1.10% 1.06% 2.16% 1.95% 1.73% 0.60% 3.21% 2.57% 2.23% 1.77% 0.78%

1.17% 1.01% 2.18% 1.96% 1.77% 0.37% 3.04% 2.38% 2.11% 1.89% 1.68%

1.15% 1.03% 2.18% 1.97% 2.03% 0.56% 3.62% 2.57% 2.08% 1.78% 1.26%

1.15% 1.29% 2.44% 2.22% 2.21% 0.60% 4.01% 2.81% 2.31% 2.07% 1.47%

Cal

enda

r Y

ears

12/31/2016 4.50% 4.12% 8.77% 7.79% 7.97%

12/31/2015 4.76% 9.88% 15.02% 13.95% 13.33%

12/31/2014 5.03% 7.17% 12.50% 11.46% 11.82%

12/31/2013 5.24% 8.35% 13.94% 12.90% 10.98%

12/31/2012 5.41% 5.29% 10.94% 9.79% 10.54%

4.65% 4.46% 9.27% 8.36% 7.97% 1.49% 12.82% 10.12% 9.18% 8.73% 5.56%

4.83% 9.97% 15.17% 14.18% 13.33% 1.25% 17.28% 15.90% 15.35% 14.44% 12.94%

5.07% 7.03% 12.38% 11.42% 11.82% 1.47% 15.47% 13.21% 12.35% 11.27% 9.82%

5.28% 7.74% 13.34% 12.36% 10.98% 2.10% 17.54% 14.88% 12.83% 11.65% 10.17%

5.40% 5.38% 11.03% 9.93% 10.54% 1.93% 13.51% 12.44% 11.30% 9.97% 5.63%

Oth

er YTD 4.50% 4.12% 8.77% 7.79% 7.97%

4Q Roll 4.50% 4.12% 8.77% 7.79% 7.97%

4.65% 4.46% 9.27% 8.36% 7.97% 1.49% 12.82% 10.12% 9.18% 8.73% 5.56%

4.65% 4.46% 9.27% 8.36% 7.97% 1.49% 12.82% 10.12% 9.18% 8.73% 5.56%

Annualized Inc App Tot, Gross Total Net Tot NPI

3 year 4.76% 7.03% 12.07% 11.04% 11.02%

5 year 4.99% 6.94% 12.21% 11.16% 10.92%

7 year 5.29% 7.71% 13.33% 12.27% 11.70%

10 year 5.32% 0.46% 5.82% 4.84% 6.93%

Inc App Tot, Gross Tot Net Tot NPI Dispersion Max Top Quartile MedianBottom Quartile Min

4.85% 7.13% 12.25% 11.29% 11.02% 0.94% 14.38% 12.62% 12.02% 11.55% 10.58%

5.05% 6.90% 12.22% 11.23% 10.92% 1.01% 14.46% 12.50% 11.89% 11.29% 10.47%

5.33% 7.65% 13.30% 12.31% 11.70% 1.09% 15.17% 14.14% 13.20% 12.19% 11.75%

5.31% 0.30% 5.63% 4.70% 6.93% 1.07% 7.35% 5.91% 5.74% 5.16% 2.87%

SI 03/31/78 7.31% 1.36% 8.75% 7.68% 9.29% 7.37% 0.91% 8.33% 7.31% 9.29%

Value Weight Balance Sheet

# Funds Gross RE Net RE Levg % Cash % Occupy %

Qua

rter

s

12/31/2016 24 $217,798.5 $174,269.9 21.7% 3.6% 92.7%

09/30/2016 24 $217,310.4 $173,311.0 22.1% 3.0% 92.6%

06/30/2016 24 $211,752.4 $169,325.5 22.2% 3.1% 92.9%

03/31/2016 24 $207,335.6 $166,184.9 22.1% 2.5% 93.1%

Equal Weight Balance Sheet

Gross RE Net RE Levg % Cash % Occupy %

$217,798.5 $174,269.9 23.1% 3.0% 92.6%

$217,310.4 $173,311.0 23.7% 2.6% 92.2%

$211,752.4 $169,325.5 24.0% 3.0% 93.0%

$207,335.6 $166,184.9 24.0% 2.5% 92.9%

Cal

enda

r Y

ears

12/31/2016 $217,798.5 $174,269.9 21.7% 3.6% 92.7%

12/31/2015 $198,553.2 $159,200.6 21.7% 2.7% 92.9%

12/31/2014 $165,721.8 $130,285.1 22.1% 2.8% 92.4%

12/31/2013 $138,495.7 $110,438.0 22.1% 4.0% 91.2%

12/31/2012 $116,102.4 $90,153.4 22.2% 5.0% 89.8%

$217,798.5 $174,269.9 23.1% 3.0% 92.6%

$198,553.2 $159,200.6 23.2% 2.8% 92.6%

$165,721.8 $130,285.1 22.6% 3.4% 92.1%

$138,495.7 $110,438.0 23.8% 3.2% 90.2%

$116,102.4 $90,153.4 22.4% 4.1% 89.2%

Risk Measures

Annualized Std Dev Sharpe Ratio

5 year 1.18% 9.585

7 year 1.98% 6.363

10 year 8.69% 0.619

Risk Measures

Std Dev Sharpe Ratio

1.10% 10.258

1.94% 6.495

8.83% 0.591

SI 03/31/78 5.34% 0.742 5.22% 0.675


Page 6 of 11

NFI-ODCE December 31, 2016Index Trends

Gross Net Diversification

Returns & Risk RE Assets RE Assets Property Types Region

Period Quartile Tot Inc Disp ($mil) ($mil) # Invests Levg % Cash % Occupy % Apt Hotel Ind Office Retail Other East MidWest South West Other

5 Y

ear

Top 13.3% 5.2% 0.7% $13,444.1 $10,560.1 179 23.0% 3.7% 92.2% 21.2% 0.5% 16.7% 37.3% 18.9% 5.4% 27.2% 11.6% 22.8% 39.8% 0.0%

Second 12.3% 4.7% 0.2% $8,537.3 $6,430.7 128 24.3% 3.5% 89.9% 22.9% 2.2% 16.0% 36.3% 19.5% 3.1% 37.5% 10.4% 20.3% 37.4% 0.0%

Third 11.7% 4.8% 0.1% $4,260.2 $3,528.5 64 21.2% 2.6% 90.3% 28.2% 0.3% 18.5% 38.5% 14.0% 0.4% 33.9% 10.3% 14.1% 43.7% 0.0%

Bottom 10.9% 5.0% 0.3% $7,006.5 $5,715.3 92 21.0% 3.7% 92.0% 28.2% 2.5% 15.1% 34.7% 18.2% 1.4% 38.1% 7.8% 16.3% 41.4% 0.0%

3 Y

ear

Top 13.2% 4.8% 0.7% $7,858.2 $6,713.1 127 24.8% 3.7% 93.0% 21.6% 0.9% 22.0% 36.0% 17.6% 1.9% 31.1% 8.9% 23.1% 40.8% 0.0%

Second 12.3% 4.7% 0.2% $9,238.4 $7,054.2 135 22.3% 2.5% 93.2% 28.7% 0.6% 14.9% 31.8% 17.6% 6.4% 29.6% 13.3% 18.6% 39.9% 0.0%

Third 11.9% 4.9% 0.2% $10,537.4 $7,793.0 84 23.7% 2.3% 90.5% 24.4% 0.0% 19.0% 39.6% 16.0% 1.0% 32.7% 11.7% 16.1% 43.9% 0.0%

Bottom 11.0% 4.8% 0.3% $7,270.1 $6,046.9 95 21.0% 3.1% 93.2% 26.6% 2.3% 15.3% 34.6% 19.9% 1.4% 36.5% 5.3% 20.2% 39.8% 0.0%

1 Y

ear

Top 11.0% 5.2% 0.9% $4,840.0 $4,036.5 90 27.3% 2.2% 92.6% 25.7% 0.0% 25.3% 32.1% 14.3% 2.5% 27.1% 9.9% 24.4% 44.3% 0.0%

Second 9.7% 4.6% 0.4% $6,006.2 $4,824.7 95 24.0% 2.7% 92.2% 25.0% 1.0% 14.3% 36.0% 18.4% 5.3% 20.8% 13.2% 27.6% 38.1% 0.0%

Third 9.0% 4.6% 0.1% $10,275.5 $8,065.6 112 23.4% 3.1% 93.2% 23.8% 0.6% 17.1% 37.2% 18.2% 3.1% 36.6% 9.4% 14.6% 43.9% 0.0%

Bottom 7.4% 4.2% 1.1% $14,469.9 $11,535.3 125 20.2% 3.1% 92.7% 26.4% 0.7% 12.9% 37.8% 21.8% 0.4% 33.5% 9.9% 16.7% 39.7% 0.0%

Pri

or Y

ear Top 16.6% 4.8% 0.4% $4,515.6 $3,702.2 82 22.8% 2.8% 91.5% 23.6% 0.0% 14.8% 34.1% 21.1% 6.4% 27.7% 16.9% 21.6% 36.0% 0.0%

Second 15.6% 4.6% 0.2% $6,469.7 $5,437.0 109 24.2% 3.4% 93.9% 28.0% 0.8% 18.8% 35.2% 15.9% 1.3% 34.0% 9.7% 20.4% 40.4% 0.0%

Third 15.0% 4.9% 0.3% $15,378.9 $11,570.9 139 22.2% 2.5% 91.3% 19.8% 0.4% 17.8% 43.1% 15.9% 3.0% 28.5% 8.3% 18.6% 45.5% 0.0%

Bottom 13.5% 5.0% 0.5% $7,104.6 $5,720.1 89 23.0% 3.3% 93.9% 28.4% 1.8% 16.9% 32.2% 18.3% 2.4% 34.1% 7.5% 19.6% 41.6% 0.0%


Note: For purposes of the Percentile Supplement Reports on this page and the page following, percentiles represent quartiles for each respective time period shown. The balance sheet and other data represents equal weighted averages for the respective time period and quartile shown.

Page 7 of 11

NFI-ODCE December 31, 2016Percentile Summary by Hold Periods

5 Year Returns and Risk Measures

Qtile Tot Inc Std DevSharpe Ratio

Info Ratio Beta

JensenAlpha

To

p Q

uar

tile

5 F

un

ds

13.3% 5.2% 1.6% 7.857 0.994 1.049 0.004

2nd

Qu

arti

le4

Fu

nd

s

12.3% 4.7% 1.8% 6.976 0.029 1.071 -0.008

3rd

Qu

arti

le4

Fu

nd

s

11.7% 4.8% 1.7% 6.565 -0.360 0.897 0.007

Bo

tto

m Q

uar

tile

5 F

un

ds

10.9% 5.0% 1.4% 7.494 -1.253 0.767 0.015

4 Qtr Roll Rets Balance Sheet ($millions) and Other Property Type Region

Qtr-End Tot Inc

Gross Assets Net Assets Lev % Cash % Contrib Distrib

Occupy % Invests Off Ret Ind Apt East

Mid West South West

12/16 9.6% 4.6% 17,948 14,474 21.7% 4.9% 283 461 92.3% 196 36.2% 20.7% 16.5% 20.7% 26.1% 11.2% 22.1% 40.6%

12/15 15.8% 4.9% 16,948 13,549 22.1% 2.7% 341 209 92.5% 195 38.1% 19.6% 14.6% 21.7% 25.9% 11.5% 23.2% 39.4%

12/14 12.9% 5.1% 14,224 11,171 22.1% 3.1% 245 151 92.4% 186 39.3% 19.1% 15.0% 20.5% 27.2% 11.9% 23.4% 37.6%

12/13 15.7% 5.5% 11,554 9,307 22.9% 3.6% 202 116 91.9% 182 36.7% 18.0% 17.3% 21.8% 26.8% 10.4% 22.3% 40.5%

12/12 12.6% 5.8% 9,820 7,429 24.7% 5.5% 297 -23 90.3% 160 36.1% 17.6% 18.7% 21.5% 28.4% 11.9% 20.9% 38.8%

12/16 8.6% 4.3% 11,662 8,765 22.5% 1.7% 232 206 92.3% 129 38.4% 21.5% 15.3% 21.5% 36.2% 9.6% 18.1% 36.2%

12/15 15.9% 4.4% 10,304 8,031 21.6% 2.7% 181 183 92.3% 129 37.0% 21.3% 14.9% 23.1% 37.2% 9.8% 18.4% 34.7%

12/14 13.0% 4.7% 8,787 6,661 23.3% 3.1% 137 137 90.6% 128 35.6% 20.2% 14.9% 24.5% 37.4% 9.3% 19.6% 33.7%

12/13 13.0% 4.9% 7,789 5,914 25.7% 4.2% 120 156 87.3% 132 34.7% 19.9% 15.4% 24.0% 36.8% 9.6% 19.2% 34.5%

12/12 10.9% 5.3% 6,828 4,942 26.3% 4.6% 222 22 87.4% 128 37.4% 18.2% 15.8% 22.1% 34.0% 10.3% 19.9% 35.8%

12/16 8.7% 4.3% 5,986 5,035 23.3% 2.1% 39 48 91.0% 65 38.5% 14.2% 18.8% 28.2% 27.3% 10.8% 11.5% 50.4%

12/15 15.1% 4.6% 5,231 4,451 20.9% 2.2% 48 29 91.5% 67 38.6% 12.2% 21.5% 27.2% 30.2% 10.3% 11.5% 48.0%

12/14 11.8% 5.1% 4,382 3,684 20.7% 2.3% 120 40 90.3% 64 40.5% 12.6% 17.1% 29.2% 32.2% 8.7% 12.8% 46.3%

12/13 12.5% 5.0% 3,793 3,048 23.1% 1.7% 68 79 88.7% 65 36.5% 14.5% 17.7% 30.0% 35.2% 9.9% 14.6% 40.3%

12/12 10.4% 5.2% 3,131 2,631 17.0% 2.2% 82 38 89.8% 63 35.8% 16.5% 17.9% 28.8% 36.5% 10.2% 14.8% 38.6%

12/16 8.7% 4.7% 9,114 7,575 21.1% 2.8% 104 194 92.8% 107 36.1% 17.9% 13.6% 29.7% 35.2% 6.6% 17.5% 40.6%

12/15 13.4% 4.9% 8,794 7,183 22.4% 4.6% 134 119 94.2% 103 33.8% 19.0% 14.0% 28.6% 35.3% 7.0% 18.4% 39.2%

12/14 11.2% 5.0% 7,414 5,889 21.4% 4.4% 96 61 93.2% 93 34.4% 18.4% 14.5% 27.6% 36.5% 7.8% 18.1% 37.6%

12/13 11.3% 5.3% 6,201 5,111 20.4% 3.5% 127 153 90.9% 84 33.1% 18.9% 14.9% 29.7% 39.9% 7.7% 13.7% 38.7%

12/12 10.0% 5.3% 5,434 4,543 21.2% 3.7% 82 27 89.0% 81 36.4% 17.6% 14.8% 26.9% 37.9% 8.0% 13.8% 40.3%

This information is proprietary and may not be reported in whole or in part without written permission. The underlying data and text has been obtained from sources considered to be reliable; the information is believed to be accurate, ut is not guaranteed. This report is for information purposes only and is not to be an offer, solicitation, or recommendation with respect to the purchase or sale of any security or a recommendation of the services supplied by any money management organization. Past performance is no guarantee of future results. For details about the NFI-ODCE and definition of terms, please refer to the Index Policy and Glossary included in this report.

Page 8 of 11

NFI-ODCE December 31, 2016Percentile Details5 Year Hold Periods

Manager Name Fund Name Inception Date Data Begins

AEW Capital Management AEW Core Property Trust* 10/1/2007 03/31/2010

American Realty Advisors American Core Realty Fund* 11/21/2003 06/30/2004

ASB Capital Management, Inc. ASB Allegiance Real Estate Fund* 6/1/1984 06/30/2011

Barings Real Estate Advisors Barings Core Property Fund* 7/1/2004 09/30/2004

Bentall Kennedy (U.S) LP Multi-Employer Property Trust* 6/30/1982 12/31/1990

Blackrock Realty BlackRock US Core Property Fund, L.P. * 1/1/1981 09/30/1984

CBRE Global Investors, LLC CBRE U.S. Core Partners, LP* 5/15/2013 09/30/2013

Chemical Bank Real Estate Svcs. Real Estate Equities Fund 3/31/1978 03/31/1982

CIGNA Realty Investors Open End Real Estate Fund 10/1/1981 06/30/1982

Clarion Partners Lion Properties Fund* 4/1/2000 06/30/2000

Deutsche Asset & Wealth Management RREEF America REIT II* 7/28/1998 06/30/1999

First Wisconsin Trust Co. Employee Benefit Real Estate Fund 12/31/1982 12/31/1987

Guggenheim Real Estate LLC GRE U.S. Property Fund L.P.* 10/1/2012 03/31/2015

Heitman Capital Management First Chicago Real Estate Fund 9/1/1973 03/31/1978

Heitman Capital Management Heitman America Real Estate Trust, L.P.* 1/4/2007 03/31/2010

Henderson Global Investors U.S. Property Fund (Phoenix RESA) 6/30/1981 06/30/1994

INVESCO Real Estate INVESCO Core Real Estate - USA, LLC* 9/30/2004 12/31/2004

J.P. Morgan Chase Bank, N.A. Real Estate Fund 3/1/1970 06/30/1995

J.P. Morgan Chase Bank, N.A. Commingled Pension Trust (Strategic Property) of JPMorgan Chase Bank, N.A.* 1/1/1998 03/31/1998

John Hancock Real Estate Investment Group E.R.A. 3/31/1977 03/31/1978

L&B Realty Advisors, LLP L&B Core Income Partners, L.P.* 4/29/2011 06/30/2014

LaSalle Investment Management LaSalle US Property Fund* 2/5/2010 09/30/2013

Massachusetts Mutual SIA-R 12/31/1981 03/31/1984

MetLife Real Estate Investor MetLife Core Property Fund* 11/1/2013 03/31/2016

Morgan Stanley Real Estate Advisor, Inc Prime Property Fund* 8/1/1973 03/31/1978

Mutual of New York Real Estate Investment Mgmt MONY - Pooled Account 7 9/30/1981 12/31/1981

New York Life Investments Madison Core Property Fund LLC* 5/1/2001 06/30/2011

PNC Bank, national Association AFL-CIO Bldg. Invsmt Trust* 9/30/1988 12/31/1996

Principal Real Estate investors Principal U.S. Property Account* 3/1/1982 06/30/1982

Prudential Real Estate Investors PRISA* 7/1/1970 03/31/1978

Stockbridge Capital Group Smart Market Fund* 10/1/2011 03/31/2013

Suntrust Banks Real Estate Investment Fund 6/30/1981 12/31/1981

The Travelers Corporation Separate Account R 3/1/1976 06/30/1978

TIAA-CREF Asset Management TIAA-CPF* 8/2/2004 09/30/2005

Trust Company Of Texas Southland Fund 2/1/1981 09/30/1981

UBS Realty Investors, L.L.C. UBS Trumbull Property Fund* 1/13/1978 12/31/1978

* Funds were included in the current quarter data

Page 9 of 11

NFI-ODCE December 31, 2016Index Fund List


1 The Fund Index Data Contributing Manager (FIDCM) must be an investment management company offering an open-end fund product that is operated for institutional investors and available to U.S. Defined Benefit Plans.

2 The fund must be marketed as an open-end fund. If at any time a fund closes to new contributions and redemptions, NCREIF Staff will have the discretion to discontinue the fund in the Index (historical data will remain in the Index). All exclusions and deletions will be reported to the Board of Directors with adherence to the NCREIF data masking criteria to allow for review.

3 Subject to meeting Index criteria, the fund will be included for the first full period of operations. Initial and ending partial quarters of the fund will not be included.

4

The fund must market itself as a diversified core investment strategy, primarily investing in private equity real estate, as follows:● Real Estate – at least 80% of market value of net assets is invested in real estate [no more than 20% of such assets invested in cash and/or cash equivalents]● Investments – at least 80% of market value of real estate net assets in private equity real estate properties [no more than 20% of such assets invested in, but not limited to, property debt, public company equity/debt or private company (operating business) equity/debt]● Domain – least 95% of market value of real estate net assets in US markets● Property Types – at least 80% of market value of real estate net assets invested in office, industrial, apartment, and retail property types● Life Cycle – at least 80% of market value of real estate net assets invested in operating properties [no more than 20% of such assets invested in, but not limited to, (pre)development/redevelopment or initial leasing/lease-up cycles]● Leverage – – no more than 40% leverage. Leverage is defined as the ratio of total debt, grossed-up for ownership share of off-balance sheet debt, to the fund’s total assets, also which are grossed-up for such off-balance sheet debt.● Diversification – no more than 65% (± for market forces) of market value of real estate net assets in one property type or one region as defined by the NCREIF Property Index (“NPI”)

5 The fund must comply with the NCREIF Real Estate Information Standards; including annual audits, quarterly valuations and time-weighted returns. Further, the fund must submit information in accordance with the NCREIF Fund Data Collection and Reporting Manual (timely, accurate and industry compliant data is required).

6

The Policy of ODCE is that turnover in the Index should be limited and avoided when possible. If any criteria as specified in ODCE policy number 4 are violated during a quarter, a NCREIF Executive Staff member will discuss the circumstances (temporary vs. permanent change) with the fund’s portfolio manager. After four consecutive quarters of criteria violation, the NCREIF Executive Staff will have responsibility to decide whether or not to exclude the fund from the Index. That said, if the violation is a result of a permanent fund management or strategy change, the NCREIF Executive Staff will have the ability to waive the four consecutive quarter requirement and begin exclusion procedures from the index at anytime. In all cases a removal decision will be made by the NCREIF Executive Staff after consultation with the NCREIF Executive Management Committee.

As soon as a Fund violates ODCE policy number 4, the NCREIF Executive Staff will notify the designated representative of the fund to discuss the non-compliance issue and reiterate that compliance is required to stay in the Index. If the NCREIF executive staff decides to remove a violating fund from ODCE, NCREIF will give the fund at least one full quarter notification of the pending exclusion (called the NCREIF Exclusion Notice). Once a NCREIF Exclusion Notice has been issued, the fund has until the end of that next quarter to achieve compliance and must further remain in compliance for at least the following four consecutive quarters to diffuse the issued exclusion notice. If not, the fund may be removed from the index calculations in the quarter following the NCREIF Exclusion Notice’s removal date or in any of the following four quarters if non-compliance returns, as directed by the NCREIF executive staff. Removal decisions with an explanation for removal will be communicated to the NCREIF Board of Directors with adherence to the NCREIF data masking criteria, to allow for review and consideration of appropriate disclosure with reports.

Re-inclusion Criteria: The NCREIF Executive Staff will have the responsibility to decide to allow a fund that has been removed from ODCE to reenter the index if the fund has complied with the ODCE Index policy number 4 inclusion criteria for a minimum of four consecutive quarters, demonstrating the fund’s ability to maintain compliance going forward. If future like-violations occur, and the NCREIF Executive Staff determines that the fund is not complaint with the spirit of the Index criteria, exclusion procedures from the index can be brought forth at anytime.

7

FIDCM must supply preliminary snapshot data within 5 to 11 business days following quarter-end as well as final quarterly data to NCREIF by the 25th day of the month following quarter-end, thereby allowing NCREIF appropriate time to review, calculate and analyze the results prior to releasing the final Index at the end of the month after quarter-end. NCREIF will require approval/sign-off of individual fund data prior to publication. If data is not submitted on time, then NCREIF will recommend to the NCREIF Board whether to delay or release the Index. FIDCM also must provide NCREIF with flash, quarterly and annual reports of each fund, when available. The preferred format is electronic; however, hard copies will be accepted. General Index information in the aggregate will be available through NCREIF’s website, www.ncreif.org. Individual fund level information will not be made available to the public.

Page 10 of 11

NFI-ODCE December 31, 2016Index Policy

Index Description

The NFI-ODCE Index is a capitalization-weighted, gross of fees, time-weighted return Index with an inception date of 1/1/1978. Published reports may also contain equal-weighted and net of fees information. Open-end Funds are generally defined as infinite-life vehicles consisting of multiple investors who have the ability to enter or exit the fund on a periodic basis, subject to contribution and/or redemption requests, thereby providing a degree of potential investment liquidity. The term Diversified Core Equity style typically reflects lower risk investment strategies utilizing low leverage and generally represented by equity ownership positions in stable US operating properties (as defined herein). The NFI-ODCE is a quasi-managed Index based on the periodic review by the Index Policy Committee (“IPC”) of the Index’s criteria thresholds.

Alpha The mean of the differences in the Return of the fund versus the NFI-ODCE Return.

Beta/Jensen Alpha Jensen Alpha (y-intercept) and Beta (slope) are calculated using standard regression analysis with the dependant variable being the excess return on the portfolio (portfolio return minus the risk-free rate which is proxied by the return on 90 day T-bills) and the independent variable being the excess return on the NFI-ODCE.

Cash % Cash and Cash Equivalents (T-bills, Commercial paper, etc.) ratio to Net Real Estate Assets.

Capitalization-Weighted

The NFI-ODCE is a capitalization-weighted Index based on each funds Net Invested Capital, which is defined as Beginning Market Value Net Assets (BMV), adjusted for Weighted Cash Flows (WCF) during the period. To the extent WCF are not available; which may be the case for historical periods and older liquidated funds, BMV is used.

Contrib/Distrib Investor cash flows in and out of the fund. See Fees for "deemed" contributions when fees are paid outside the fund.

Diversification All diversification numbers are calculated based on the ratio of each category to Net Real Estate Assets.

Fees Fees represent investment management advisory fees. To the extent fees are paid outside the fund, a deemed contribution and fee expense is recorded to capture the impact of fees in the net of fee returns. See Total Return, Net of Fees for a further discussion of Fees.

Gross Real Estate Assets

All Real Estate related investments including wholly-owned, joint ventures, and public equity and debt securities. For joint venture investments where equity method accouting is used, Gross Real Estate Assets includes the fund's ownership share of underlying off-balance sheet debt.

Info Ratio The ratio of Alpha divided by the Tracking Error.

Leverage Total Leverage, including off-balance sheet.

Net Assets All assets less all liabilities reflected on a Market Value basis substantially in compliance with the NCREIF Real Estate Information Standards. Investors in open-end funds can generally actively trade in and out of funds based on the reported net asset value.

Occupancy Leased, not physical occupancy, for operating properties. Aggregate of property types is supplied by the FIDCM and is weighted by Net Real Estate Assets.

Percentiles / Quartiles

Various rankings based on Total Returns, Gross, unless indicated differently. Index Trends shows percentiles based on the holding period keeping individual fund returns intact. Percentile Summary by Hold Periods shows percentiles based on the holding period return.

Risk Measures All risk measures are calculated using quarterly total gross returns and then annualized. The benchmark for all calculations is the NFI-ODCE.

Real Estate Net Assets

Gross Real Estate at Fair Value less Debt, including proportionate share of underlying joint ventures. This excludes all other assets and liabilities.

Sharpe Ratio A ratio defined as the performance in excess of the risk-free rate divided by the volatility of the returns as measured by the standard deviation of the performance in excess of the risk-free rate.

Standard Deviation A measure of the volatility or dispersion of historical returns around their central tendency or mean return.

SI Since Inclusion in the NFI-ODCE. Equivalent to the Funds Inception Date except for cases where a Fund incepts prior or subsequent to the start of the NFI-ODCE. The Fund's inclusion periods in the NFI-ODCE are noted in the Fund's List report with the Data Begins and Ends dates. The NFI-ODCE excludes partial quarters.

Total Return, Gross Total Return, gross of investment advisory fees, based on changes in published market value Net Assets. The data contributing members provide all fund level returns as well as other pertinent data. NCREIF does not calculate individual fund returns but does calculate the overall aggregated Index return based on invested capital.

Total Return, Net Total Return, net of advisory fees. Net of fee returns are only presented at the Index Aggregate level to provide a proxy for the average advisory fees charged. Fee structures not only vary across managers and funds but also within a fund as fees may be negotiable and scaled based on the size of an investors’ investment.

Tracking Error The standard deviation of the difference between the Return on the fund and the Benchmark Return.

Page 11 of 11

NFI-ODCE December 31, 2016Glossary of Terms

Documents

NFI-ODCE NCREIF FUND INDEX - OPEN END DIVERSIFIED …12/31/2016 $217,798.5 $174,269.9 $167,453.5 21.7% 3.6% $3,186.6 $4,409.1 24 2,510 92.7% This information is proprietary and may