Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Visit the Aon Hewitt Retirement and Investment Blog (http://retirementandinvestmentblog.aon.com); sharing our best thinking.
Fairfax County Public Schools | First Quarter 2017
Presentation Materials
Contact Information
Gregory J. Fox, CFA Senior Consultant
Aon Hewitt Investment Consulting, Inc.
201 Merritt 7, STE 2
Norwalk, CT 06850
t +1 (203) 523-8780
f +1 (847) 953-2192
Matthew C. Stone Consultant
Aon Hewitt Investment Consulting, Inc.
201 Merritt 7, STE 2
Norwalk, CT 06850
t +1 (203) 523-8929
f +1 (203) 523-6750
Robert Leal Investment Analyst
Aon Hewitt Investment Consulting, Inc.
201 Merritt 7, STE 2
Norwalk, CT 06850
t +1 (203) 523-6775
f +1 (203) 523-6750
Global Equity Markets
The "reflation trade" that drove global equity markets higher last quarter was bolstered in Q1 by a continuation of
improving economic fundamentals across regions. Global equities (measured by the MSCI All Country World
Index) returned 5.8% in local currency terms. Momentum in equity markets, however, waned towards the end of
the quarter as the US administration’s struggles to revise healthcare reform led to more realistic expectations for
pro-growth policies.
All regions generated positive returns with Emerging Markets being the strongest performing region, rebounding
from underperformance late in 2016. Despite an uncertain outlook for the region given the protectionist stance from
the US administration, strong capital inflows and improving macroeconomic fundamentals led EM equities higher. A
weaker US dollar tone also acted as a tailwind for the region.
Page 1
Global Equity Markets
The two exhibits on this slide illustrate the percentage that each country/region represents of the global equity market
as measured by the MSCI All Country World IMI Index and the MSCI All Country World ex-U.S. IMI Index.
Page 2
U.S. Equity Markets
The Russell 3000 Index returned 5.74% during the first quarter and returned 18.07% over the one-year period.
During the first quarter and over the one-year period, the technology sector was the strongest performer, posting
returns of 12.71% and 27.21% respectively. The energy sector was the weakest performer and the only sector which
posted negative returns in Q1 2017; falling 6.77%.
Performance across the market capitalization spectrum was mostly positive over the quarter. Small cap stocks, across
both Value and Growth equity styles, underperformed relative to their large and mid-cap peers. Across all
capitalizations, Growth stocks outperformed Value stocks over the first quarter of 2017.
Page 3
U.S. Fixed Income Markets
The Bloomberg Barclays Aggregate Bond returned
0.82% in the first quarter of 2017. Corporate bonds
returned the most at 1.22% while Mortgage Backed
Securities returned the least at only 0.47%.
High yield bonds outperformed investment grade
corporate bonds across different credit qualities, as High
Yield bond spreads fell by 26 basis points whilst
changes in investment grade corporate bond spreads
were more muted.
Longest duration bonds outperformed all bonds of lower
maturities, as the yield curve flattened over the quarter.
Page 4
U.S. Fixed Income Markets
The Treasury yield curve flattened over the quarter, as yields of short maturity bonds rose while yields at longer
maturities fell.
The 10-year U.S. Treasury yield ended the quarter at 2.40%, 5 basis points lower than the level at the beginning of the
quarter.
The 10-year TIPS yield fell by 7 basis points over the quarter and ended the period at 0.43%.
Page 5
European Fixed Income Markets
European bond yields trended higher with other developed government bond yields in early 2017. Elevated political risk
and expectations that the ECB may start tightening monetary policy offset the downward pressure on yields from a
slowing reflation trade later in the quarter.
Within the Eurozone, bond spreads relative to German Bunds were mostly unchanged over the quarter. This was
despite increased uncertainty in the region caused by the surge in popularity of anti-euro political parties. The
exception to this were Greek government bond spreads which after rising initially in 2017, moved lower by c.20 basis
points following more productive bailout talks.
The European Central Bank (ECB) raised the region’s inflation and growth forecasts with market participants
increasingly speculating that the ECB may start tightening its very accommodative set of monetary policies in the near
future.
Page 6
Spread (bps) 03/31/2017 12/31/2016 03/31/2016 Quarterly Change (bps) 1-Year Change (bps)
U.S. Aggregate 44 43 56 1 -12
Long Gov't 3 3 4 0 -1
Long Credit 168 167 223 1 -55
Long Gov't/Credit 101 104 136 -3 -35
MBS 27 15 22 12 5
CMBS 77 75 109 2 -32
ABS 54 59 74 -5 -20
Corporate 118 123 163 -5 -45
High Yield 383 409 656 -26 -273
Global Emerging Markets 257 288 382 -31 -125
Source: Barclays Live
Credit Spreads
During the first quarter of 2017, movement in credit spreads were mixed across different areas of the bond market.
Spreads on lower quality credit such as High Yield and Global Emerging Markets fell the most over the first few
months; falling by 26 and 31 basis points respectively. Spreads on Mortgage Backed Securities (MBS) (12 basis
points) rose by the most over the quarter, followed by CMBS bonds (2 basis points). Long Government and Credit
spreads were relatively unchanged over this period.
Page 7
Commodities
The Bloomberg Commodity Index fell during the first quarter returning -2.33%.
Over the quarter, the best performing segment was Precious metals with a return 9.77%, followed by the
Industrial metals sector (7.62%).
Energy was the worst performing sector during the quarter with a return of -11.41%, as the price of Brent crude oil
slipped to under $54/bbl.
Page 8
Currency
After reaching new heights in early 2017 the U.S. dollar fell sharply over the quarter, as measured through the broad
trade weighted U.S. dollar index.
The US dollar depreciated against all the major currencies despite the Fed hiking the target range for the federal funds
rate to 0.75%-1.00%, a continuation of the divergent interest rate paths of the US and other developed markets. Lower
uncertainty following the UK Prime Minister’s comments indicating a “hard” Brexit stance alongside a slowing of the
reflation trade, led to the pound strengthening by 1.2% against the US dollar.
Yen appreciation this quarter was a partial correction of the substantial weakening that occurred in the last few months
of 2016. The yen rose sharply by 4.7% against the US dollar to March 2017.
Page 9
Returns moderated throughout 2016 and this trend continued in the first quarter of 2017 with U.S. Core real estate returns generating 1.77%*, which is 34 bps lower than the
fourth quarter of 2016 and down 41 bps year-over-year (“YOY”). Income (1.06%) continued to outpace appreciation (0.70%) and as asset appreciation abates, investment
returns are likely to continue to moderate toward the long-run average. At this mature point in cycle, income growth will likely to be larger driver of appreciation than yield
compression.
Following gains of 7.6% in 2016, U.S. REITs were slightly positive in the first quarter, generating 0.2% (FTSE NAREIT Equity REIT Index), although fell almost 3% in March
as growth expectations for the sector faded over the year. Overall, operating fundamentals still remain favorable, although the pace of cash flow (net operating income “NOI”)
growth has decelerated. U.S. REITs ended the quarter trading at slight premiums to NAVs, although this was largely driven by REIT sectors, such as health care and net
lease, providing higher dividends. Excluding these two sectors, REITs trade at a 5% discount.
U.S. property sales continued to decline in the first quarter, with preliminary data showing a 31% drop in transaction volume from the previous year. Property sales have
weakened over the past few quarters due to fewer mega-deals, but this most recent decline is due to a 27% YOY drop in single asset sales. The drop in property sales is
predominately due to a rising rate environment, buyers concerns surrounding cap rate movements and a disconnect between buyers and sellers. Despite the drop in
property sales, pricing is still relatively tight with cap rates at similar levels to Q1 2016.
The uncertain economic and policy environment also means an uncertain outlook for fundamentals. It is forecasted that supply and demand will be largely in balance, as
steady demand is met by constrained new construction due to changes in bank regulations, especially reserve requirements on construction loans. However, the Apartment
and Industrial sector are further along in the new construction phase of their respective cycles which comes with greater risk of increases in vacancy and lower rent growth
rates.
The U.S. real estate cycle is mature, and thus more susceptible to bumps along the road. While still solid income returns are forecast to continue to support attractive relative
returns versus many other asset classes, portfolio construction consideration is critical. At this point in the cycle, appropriate risk mitigation measures should be a staple in all
investment portfolios as new investments will likely be required to ride out a cyclical downturn.
U.S. Commercial Real Estate Markets
*Indicates preliminary NFI-ODCE data gross of fees
RETURN INDEX CPPI BY PROPERTY SECTOR
SOURCE: MOODYS/RCA, AON HEWITT 12/31/2016
60
70
80
90
100
110
120
130
140
150
160
170
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
Apartment Industrial Office Retail Hotel
Page 10
Fairfax County Public Schools – Summary
This report has been prepared by Aon Hewitt Investment Consulting (AHIC) to provide Fairfax County Public Schools with an
objective, third party review of the historical investment results of the 457(b) Plan.
Asset Allocation
The Fairfax County Public Schools 457(b) Plan currently offers 8 investment options and a series of lifecycle funds. As of March
31, 2017, the Plan had 1 guaranteed interest fund, 1 fixed income fund, 1 inflation-sensitive solution, 2 passively-managed
domestic equity funds, 2 actively-managed domestic equity funds, 1 actively-managed foreign equity fund and a series of actively
managed target date funds. The two passively-managed domestic equity funds cover the following asset classes: large cap core
and mid cap core. The two actively-managed domestic equity funds cover the following asset classes: large cap core and mid
cap growth. Participants may allocate their investments among the funds in accordance with their own personal tolerance for risk.
As of March 31, 2017, the assets of the Plan totaled $193.5 million. The Plan held 15.9% of assets in the guaranteed interest
product, 9.9% in fixed income, 56.7% in domestic equity, 8.8% in foreign equity and 7.7% in target date funds. The Plan’s asset
allocation by fund is detailed later in this report.
Plan Performance
During the first quarter of 2017, global equity markets continued to rise due to the continuation of improving economic
fundamentals across regions. Markets slid towards the end of the quarter as the U.S. administration struggled to revise
healthcare reform, thus leading to more realistic expectations for pro-growth policies. Domestically, the Russell 3000 Index
returned 5.7% during the quarter. Sector results were mostly positive during the first quarter with the exception of energy, which
was down -6.77%. The top performing sector of the market was technology, returning 12.71%. Performance was mostly positive
across the market capitalization spectrum during the quarter. Small cap stocks, across both value and growth stylizations,
underperformed relative to their large and mid-cap peers. Growth outperformed value in all capitalization levels. During the first
quarter, the developed non-U.S. equity markets had positive results with the MSCI EAFE Index generating a return of 7.25%.
Emerging markets outperformed developed non-U.S. markets; the MSCI Emerging Markets Index returned 11.45%. The
domestic fixed income market, as represented by the Bloomberg Barclays Aggregate Bond Index, posted a return of 0.82% for
the quarter. The strongest performing segment of the domestic bond market was corporate bonds, which returned 1.22% for the
quarter. Longer duration bonds outperformed their shorter duration counterparts as the yield curve flattened over the first quarter.
Mortgage Backed Securities represented the worst performing sector during the quarter, with a return of 0.47%. Overall, the
global fixed income market outperformed the domestic fixed income market, as measured by the Citigroup Non-U.S. WGBI,
which returned 2.02% for the quarter.
Page 11
Fairfax County Public Schools – Summary
Plan Performance (continued)
Against this backdrop, the Plan’s options had mixed results on a relative basis. Performance for the Plan’s passive strategies closely
tracked their target benchmarks.
Longer-term relative performance of most of the Plan’s active investments also had mixed results for the ten-year period ending March
31, 2017. Allowing for the expense ratios of the funds, both of the Plan’s index options successfully tracked their target Indices for the
quarter as well as for longer periods.
Quarterly Fund Attribution
PIMCO Total Return Fund outperformed during the quarter
+ U.S. TIPS held in lieu of nominal treasuries
+ Certain positions in non-Agency MBS and corporate credit
+ U.S. rate strategies, including duration, curve positioning and instrument selection
PIMCO Inflation Response Multi-Asset Fund outperformed its benchmark during the quarter
+ Emerging market currency and gold exposures
+ Active commodity trades
+ Active REITs basket versus benchmark
Page 12
Fairfax County Public Schools – Summary
Quarterly Fund Attribution (continued)
Baron Growth Fund outperformed during the quarter
+ Stock selection in the financials, information technology, and consumer discretionary sectors
+ Greater exposure to smid and mid cap stocks, which outperformed small and micro cap stocks
Dodge & Cox Stock Fund underperformed during the quarter
- Overweight and stock selection in the financial and energy sectors
- Stock selection in the information technology sector
- Lack of exposure to the highest performing securities in the benchmark (Apple, Facebook, Amazon, and Netflix)
Artisan International Fund outperformed during the quarter
+ Positive stock selection in the health care, consumer discretionary, and technology sectors
+ Underweight to the energy sector
Page 13
Market ValueAs of
01/01/2017
NetTransfers
Contributions DistributionsCapital
Apprec./Deprec.
Market ValueAs of
03/31/2017
U.S. FIXED INCOME
Great West Portfolio Fund 30,157.70 57.00 716.51 -190.50 145.96 30,886.67
PIMCO Total Return Adm 18,918.74 -402.48 388.28 -296.21 291.90 18,900.23
PIMCO Inflation Response MultiAsst Inst 176.42 30.76 7.92 -1.51 4.08 217.68
TARGET DATE
T. Rowe Price Retirement 2005 406.42 -136.40 11.20 - 10.94 292.16
T. Rowe Price Retirement 2010 396.02 - 7.60 - 14.90 418.53
T. Rowe Price Retirement 2015 1,749.74 - 27.69 -9.61 74.07 1,841.88
T. Rowe Price Retirement 2020 3,275.81 40.47 77.12 -2.17 164.80 3,556.02
T. Rowe Price Retirement 2025 2,590.46 57.04 120.02 -29.09 141.48 2,879.91
T. Rowe Price Retirement 2030 1,123.30 95.94 73.53 -20.99 71.32 1,343.10
T. Rowe Price Retirement 2035 1,970.25 35.57 180.37 - 134.14 2,320.33
T. Rowe Price Retirement 2040 759.67 -2.52 40.33 - 53.00 850.47
T. Rowe Price Retirement 2045 571.57 -1.71 41.23 -8.10 40.69 643.68
T. Rowe Price Retirement 2050 370.73 - 21.19 - 26.01 417.92
T. Rowe Price Retirement 2055 344.73 1.88 28.11 - 24.60 399.32
U.S. EQUITY
BlackRock S&P 500 Stock 25,000.22 313.77 780.79 -333.00 1,509.85 27,271.63
Dodge & Cox Stock 24,420.35 452.68 413.35 -190.82 1,228.26 26,323.82
Vanguard Mid Cap Index 28,023.85 332.09 600.52 -495.64 1,735.68 30,196.50
Baron Growth Inst 23,939.25 -458.06 418.70 -401.48 2,454.32 25,952.73
INTERNATIONAL EQUITY
Artisan International Inv 15,872.39 -416.03 360.66 -163.36 1,415.98 17,069.63
OTHER
Loan Fund 1,522.38 - 86.37 -173.11 18.41 1,454.06
Forfeiture Account 316.14 - 63.80 -108.59 1.74 273.08
Total 457(b) Plan 181,906.15 - 4,465.27 -2,424.19 9,562.13 193,509.36
Fairfax County Public Schools
Financial Reconciliation
($000)
1 Quarter Ending March 31, 2017
Page 14
December 31, 2016 : $181,906,149 March 31, 2017 : $193,509,360
SegmentsMarket Value
($)Allocation
(%)
Domestic Equity 101,383,672.68 55.73¢£
International Equity 15,872,387.06 8.73¢£
Domestic Fixed Income 18,918,735.78 10.40¢£
GIC 30,157,704.45 16.58¢£
Real Return 176,423.64 0.10¢£
Loan Fund 1,522,384.81 0.84¢£
Cash 316,144.31 0.17¢£
Life Cycle 13,558,696.12 7.45¢£
SegmentsMarket Value
($)Allocation
(%)
Domestic Equity 109,744,677.80 56.71¢£
International Equity 17,069,633.47 8.82¢£
Domestic Fixed Income 18,900,230.28 9.77¢£
GIC 30,886,669.22 15.96¢£
Real Return 217,676.73 0.11¢£
Loan Fund 1,454,060.85 0.75¢£
Cash 273,081.64 0.14¢£
Life Cycle 14,963,329.65 7.73¢£
Fairfax County Public Schools
457(b) Plan
Asset Allocation by Segment
Page 15
Domestic Equity International Equity Domestic Fixed Income GIC
Real Return Loan Fund Cash Life Cycle
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Allo
ca
tio
n (%
)
3/10 9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17
Fairfax County Public Schools
Historical Asset Allocation by Segment
April 1, 2010 To March 31, 2017
Total 457(b) Plan
Page 16
Allocation
MarketValue($000)
%
Performance(%)
1Quarter
1Year
3Years
5Years
7Years
10Years
Total 457(b) Plan 193,509.36 100.00
U.S. Fixed Income 50,004.58 25.84
Great West Portfolio Fund 30,886.67 15.96 0.48 1.96 1.94 1.86 2.07 2.45
50% B Bar Int. Agg/50% 90 day T-Bill 0.39 0.33 1.19 1.03 1.52 2.28
90 Day U.S. Treasury Bill 0.10 0.30 0.14 0.11 0.11 0.66
PIMCO Total Return Adm 18,900.23 9.77 1.56 (3) 2.15 (23) 2.51 (61) 2.70 (40) 3.67 (52) 5.35 (2)
Blmbg. Barc. U.S. Aggregate 0.82 (70) 0.44 (72) 2.68 (43) 2.34 (62) 3.48 (60) 4.27 (50)
PIMCO Inflation Response MultiAsst Inst 217.68 0.11 2.28 (80) 7.41 (76) 0.92 (84) 0.61 (94) - -
PIMCO IRMA Benchmark 0.84 (94) 6.40 (83) 0.60 (85) -0.64 (98) 1.94 (98) 2.31 (94)
Target Date 14,963.33 7.73
TRP Retirement 2005 292.16 0.15 3.42 (12) 7.77 (26) 4.10 (22) 5.59 (22) 6.26 (17) 4.89 (29)
TRP Retirement 2005 Index 2.96 (23) 6.81 (48) 4.20 (15) 5.50 (23) 6.08 (20) 4.47 (46)
TRP Retirement 2010 418.53 0.22 3.75 (13) 8.55 (23) 4.42 (18) 6.19 (9) 6.83 (10) 4.97 (1)
TRP Retirement 2010 Index 3.25 (44) 7.67 (51) 4.50 (15) 6.12 (11) 6.68 (14) 4.62 (15)
TRP Retirement 2015 1,841.88 0.95 4.23 (14) 9.68 (20) 4.87 (11) 7.05 (4) 7.62 (1) 5.31 (-)
TRP Retirement 2015 Index 3.73 (34) 9.00 (34) 4.99 (7) 7.01 (4) 7.48 (5) 4.94 (-)
TRP Retirement 2020 3,556.02 1.84 5.00 (2) 11.14 (13) 5.33 (3) 7.87 (2) 8.32 (1) 5.53 (1)
TRP Retirement 2020 Index 4.26 (23) 10.50 (19) 5.47 (1) 7.81 (2) 8.18 (2) 5.17 (3)
TRP Retirement 2025 2,879.91 1.49 5.61 (2) 12.31 (11) 5.72 (1) 8.58 (3) 8.90 (3) 5.72 (-)
TRP Retirement 2025 Index 4.72 (25) 11.81 (22) 5.87 (1) 8.52 (3) 8.75 (4) 5.36 (-)
TRP Retirement 2030 1,343.10 0.69 6.08 (2) 13.35 (15) 6.07 (8) 9.18 (3) 9.40 (3) 5.90 (1)
TRP Retirement 2030 Index 5.15 (37) 13.05 (19) 6.22 (3) 9.13 (3) 9.26 (3) 5.52 (1)
TRP Retirement 2035 2,320.33 1.20 6.57 (4) 14.21 (19) 6.31 (9) 9.60 (3) 9.73 (2) 6.02 (-)
TRP Retirement 2035 Index 5.49 (43) 14.02 (25) 6.46 (7) 9.55 (4) 9.59 (3) 5.65 (-)
Fairfax County Public Schools
Asset Allocation & Performance
As of March 31, 2017
Page 17
Fairfax County Public Schools
Asset Allocation & Performance
As of March 31, 2017
Allocation
MarketValue($000)
%
Performance(%)
1Quarter
1Year
3Years
5Years
7Years
10Years
TRP Retirement 2040 850.47 0.44 6.89 (3) 14.90 (19) 6.46 (11) 9.88 (4) 9.94 (2) 6.17 (1)
TRP Retirement 2040 Index 5.77 (50) 14.86 (22) 6.65 (3) 9.84 (4) 9.82 (3) 5.80 (4)
TRP Retirement 2045 643.68 0.33 7.04 (3) 15.12 (27) 6.54 (9) 9.92 (4) 9.96 (3) 6.20 (-)
TRP Retirement 2045 Index 5.85 (57) 15.10 (27) 6.73 (2) 9.89 (5) 9.85 (4) 5.83 (-)
TRP Retirement 2050 417.92 0.22 6.93 (4) 15.08 (32) 6.52 (10) 9.91 (8) 9.96 (3) 6.18 (-)
TRP Retirement 2050 Index 5.85 (53) 15.10 (32) 6.73 (3) 9.89 (8) 9.85 (4) 5.83 (-)
TRP Retirement 2055 399.32 0.21 6.99 (4) 15.16 (36) 6.53 (10) 9.91 (11) 9.98 (-) 6.18 (-)
TRP Retirement 2055 Index 5.85 (70) 15.10 (37) 6.73 (4) 9.89 (12) 9.85 (-) 5.83 (-)
U.S. Equity 109,744.68 56.71
BlackRock S&P 500 Stock 27,271.63 14.09 6.05 (19) 17.12 (11) 10.31 (14) 13.20 (21) 12.82 (19) 7.42 (16)
S&P 500 Index 6.07 (4) 17.17 (3) 10.37 (1) 13.30 (1) 12.94 (1) 7.51 (4)
Dodge & Cox Stock 26,323.82 13.60 4.97 (70) 28.58 (1) 9.44 (36) 15.24 (2) 12.98 (12) 6.26 (67)
S&P 500 Index 6.07 (36) 17.17 (40) 10.37 (16) 13.30 (17) 12.94 (13) 7.51 (29)
Vanguard Mid Cap Index 30,196.50 15.60 6.19 (36) 16.73 (56) 8.69 (26) 12.89 (30) 13.03 (24) 7.85 (31)
Vanguard Spliced Mid Cap Index 6.20 (35) 16.80 (54) 8.73 (24) 12.93 (28) 13.07 (23) 7.86 (31)
Baron Growth Inst 25,952.73 13.41 10.41 (8) 17.01 (33) 5.54 (66) 11.83 (28) 12.33 (32) -
Baron Growth Rtl 10.34 (9) 16.70 (36) 5.27 (70) 11.54 (32) 12.04 (38) 7.19 (58)
Russell Midcap Growth Index 6.89 (58) 14.07 (72) 7.88 (28) 11.95 (26) 12.81 (26) 8.13 (40)
International Equity 17,069.63 8.82
Artisan International Inv 17,069.63 8.82 8.98 (17) 2.15 (99) -1.53 (93) 4.96 (60) 5.79 (11) 2.05 (32)
MSCI EAFE Index (Net) 7.25 (69) 11.67 (45) 0.50 (48) 5.83 (27) 4.72 (40) 1.05 (57)
MSCI AC World ex USA Index (Net) 7.86 (47) 13.13 (31) 0.56 (47) 4.36 (80) 3.82 (71) 1.35 (44)
Page 18
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
U.S. Fixed Income
Great West Portfolio Fund 3.26 3.42 3.37 2.67 2.55 2.11 1.53 1.86 2.00 1.98
50% B Bar Int. Agg/50% 90 day T-Bill 5.97 3.50 3.28 3.11 2.99 1.80 -0.48 2.06 0.62 1.12
90 Day U.S. Treasury Bill 4.91 2.10 0.17 0.13 0.08 0.08 0.05 0.04 0.03 0.25
PIMCO Total Return Adm 8.82 (1) 4.56 (23) 13.53 (30) 8.57 (16) 3.91 (95) 10.10 (3) -2.16 (72) 4.43 (81) 0.47 (37) 2.34 (78)
Blmbg. Barc. U.S. Aggregate 6.97 (19) 5.24 (19) 5.93 (84) 6.54 (68) 7.84 (15) 4.21 (76) -2.02 (64) 5.97 (33) 0.55 (27) 2.65 (62)
IM U.S. Broad Market Core Fixed Income (MF) Median 6.16 0.61 10.77 7.08 6.98 6.06 -1.65 5.76 0.31 2.95
PIMCO Inflation Response MultiAsst Inst - - - - - 9.56 (64) -9.29 (100) 1.57 (73) -6.77 (78) 10.53 (19)
PIMCO IRMA Benchmark 10.35 (30) -14.42 (14) 17.32 (89) 13.49 (41) 3.82 (13) 4.83 (91) -11.77 (100) -0.46 (82) -7.12 (79) 13.89 (12)
IM Flexible Portfolio (MF) Median 7.15 -28.81 25.12 12.46 -1.66 10.99 12.05 3.76 -3.44 6.46
Target Date
TRP Retirement 2005 6.67 (25) -22.24 (82) 24.55 (17) 11.51 (17) 1.43 (65) 11.35 (16) 9.74 (23) 4.72 (39) -0.75 (37) 6.72 (26)
TRP Retirement 2005 Index 6.79 (23) -19.10 (68) 16.91 (63) 10.22 (42) 2.38 (43) 9.52 (42) 9.86 (22) 5.48 (24) -0.10 (19) 5.84 (41)
IM Mixed-Asset Target Alloc Consv (MF) Median 5.65 -17.05 18.88 9.92 2.07 9.04 7.53 4.21 -1.15 5.43
TRP Retirement 2010 6.65 (48) -26.71 (80) 27.95 (4) 12.70 (4) 0.54 (55) 12.44 (6) 11.93 (8) 4.99 (23) -0.76 (59) 7.11 (9)
TRP Retirement 2010 Index 6.82 (46) -23.19 (34) 19.64 (67) 11.42 (30) 1.81 (25) 10.61 (26) 12.00 (7) 5.77 (12) -0.17 (14) 6.27 (44)
IM Mixed-Asset Target 2010 (MF) Median 6.42 -24.07 22.97 10.88 0.90 9.64 9.24 4.49 -0.67 6.07
TRP Retirement 2015 6.75 (-) -30.22 (86) 31.35 (1) 13.79 (4) -0.32 (81) 13.81 (1) 15.18 (2) 5.37 (32) -0.58 (31) 7.31 (13)
TRP Retirement 2015 Index 6.85 (-) -26.61 (33) 22.08 (65) 12.57 (27) 1.09 (42) 11.94 (25) 14.97 (3) 6.30 (16) -0.28 (14) 6.91 (33)
IM Mixed-Asset Target 2015 (MF) Median - -27.68 25.09 11.75 0.93 11.02 11.55 4.89 -0.80 6.48
TRP Retirement 2020 6.73 (50) -33.48 (82) 34.19 (1) 14.74 (3) -1.20 (84) 15.01 (1) 18.05 (2) 5.63 (37) -0.31 (25) 7.41 (18)
TRP Retirement 2020 Index 6.84 (49) -29.72 (62) 24.20 (58) 13.47 (22) 0.48 (45) 13.04 (20) 17.56 (3) 6.70 (5) -0.41 (32) 7.62 (10)
IM Mixed-Asset Target 2020 (MF) Median 6.68 -28.49 24.76 12.79 0.19 11.78 12.98 5.13 -0.80 6.61
TRP Retirement 2025 6.81 (-) -35.90 (87) 36.29 (1) 15.37 (1) -2.06 (71) 16.00 (1) 20.78 (3) 5.84 (38) -0.17 (13) 7.55 (20)
TRP Retirement 2025 Index 6.84 (-) -32.24 (36) 26.15 (66) 14.12 (26) -0.22 (25) 14.00 (22) 20.01 (4) 7.06 (9) -0.56 (31) 8.21 (9)
IM Mixed-Asset Target 2025 (MF) Median - -33.66 27.71 13.67 -1.05 13.27 16.08 5.52 -1.14 7.21
TRP Retirement 2030 6.83 (56) -37.79 (74) 37.99 (1) 16.01 (3) -2.70 (70) 16.82 (1) 23.09 (4) 6.05 (36) -0.02 (6) 7.69 (47)
TRP Retirement 2030 Index 6.80 (56) -34.16 (45) 27.43 (70) 14.72 (32) -0.79 (21) 14.85 (20) 22.13 (8) 7.29 (7) -0.73 (40) 8.80 (10)
IM Mixed-Asset Target 2030 (MF) Median 7.46 -36.24 28.91 13.90 -2.19 14.02 18.20 5.66 -1.05 7.49
TRP Retirement 2035 6.81 (-) -38.88 (71) 39.04 (1) 16.34 (1) -3.26 (61) 17.35 (1) 24.86 (3) 6.07 (38) 0.13 (4) 7.64 (67)
TRP Retirement 2035 Index 6.74 (-) -35.35 (28) 28.59 (70) 15.10 (42) -1.37 (10) 15.45 (39) 23.76 (12) 7.37 (5) -0.87 (35) 9.21 (14)
IM Mixed-Asset Target 2035 (MF) Median - -37.76 30.96 14.59 -3.14 15.13 20.82 5.69 -1.45 8.29
TRP Retirement 2040 6.77 (63) -38.85 (72) 39.07 (1) 16.51 (9) -3.49 (43) 17.55 (1) 25.93 (8) 6.18 (38) 0.17 (3) 7.63 (67)
TRP Retirement 2040 Index 6.74 (64) -35.35 (14) 28.59 (84) 15.17 (38) -1.46 (9) 15.66 (40) 24.73 (20) 7.43 (7) -1.01 (40) 9.58 (15)
IM Mixed-Asset Target 2040 (MF) Median 7.33 -37.62 30.66 14.70 -3.71 15.19 21.74 5.85 -1.23 8.42
TRP Retirement 2045 6.84 (-) -38.83 (53) 39.10 (1) 16.44 (10) -3.47 (31) 17.62 (1) 25.93 (5) 6.14 (35) 0.17 (3) 7.69 (71)
TRP Retirement 2045 Index 6.74 (-) -35.35 (18) 28.59 (91) 15.17 (44) -1.46 (1) 15.66 (53) 24.73 (22) 7.43 (7) -0.98 (36) 9.70 (13)
IM Mixed-Asset Target 2045 (MF) Median - -38.75 31.04 15.01 -3.86 15.69 23.08 5.76 -1.56 8.52
Fairfax County Public Schools
Calendar Year Performance
As of March 31, 2017
Returns for periods greater than one year are annualized.Returns are expressed as percentages.
Page 19
Fairfax County Public Schools
Calendar Year Performance
As of March 31, 2017
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
TRP Retirement 2050 6.82 (-) -38.80 (58) 38.92 (1) 16.41 (15) -3.36 (26) 17.55 (4) 25.90 (12) 6.19 (36) 0.19 (4) 7.71 (69)
TRP Retirement 2050 Index 6.74 (-) -35.35 (6) 28.59 (85) 15.17 (39) -1.46 (5) 15.66 (40) 24.73 (28) 7.43 (8) -0.98 (40) 9.70 (17)
IM Mixed-Asset Target 2050 (MF) Median - -38.76 31.10 14.94 -3.96 15.58 23.26 5.95 -1.33 8.43
TRP Retirement 2055 6.82 (-) -38.89 (-) 38.97 (-) 16.41 (-) -3.35 (16) 17.60 (1) 25.86 (12) 6.18 (40) 0.18 (5) 7.73 (76)
TRP Retirement 2055 Index 6.74 (-) -35.35 (-) 28.59 (-) 15.17 (-) -1.46 (1) 15.66 (60) 24.73 (29) 7.43 (10) -0.98 (47) 9.70 (16)
IM Mixed-Asset Target 2055+ (MF) Median - - - - -4.33 15.73 23.18 5.72 -1.24 8.72
U.S. Equity
BlackRock S&P 500 Stock 5.36 (36) -37.01 (30) 26.49 (18) 14.92 (36) 1.98 (41) 15.84 (33) 32.21 (28) 13.61 (14) 1.35 (19) 11.86 (28)
S&P 500 Index 5.49 (11) -37.00 (29) 26.46 (23) 15.06 (1) 2.11 (8) 16.00 (3) 32.39 (3) 13.69 (1) 1.38 (9) 11.96 (7)
IM S&P 500 Index (MF) Median 5.28 -37.06 26.39 14.82 1.96 15.77 32.11 13.47 1.23 11.75
Dodge & Cox Stock 0.14 (93) -43.31 (91) 31.27 (26) 13.49 (55) -4.08 (89) 22.01 (2) 40.55 (1) 10.40 (72) -4.49 (93) 21.28 (1)
S&P 500 Index 5.49 (62) -37.00 (55) 26.46 (55) 15.06 (34) 2.11 (31) 16.00 (44) 32.39 (48) 13.69 (20) 1.38 (30) 11.96 (31)
IM U.S. Large Cap Core Equity (MF) Median 6.35 -36.58 27.08 13.87 1.11 15.50 32.27 11.93 -0.10 10.52
Vanguard Mid Cap Index 6.22 (59) -41.76 (71) 40.51 (34) 25.67 (32) -1.96 (42) 16.01 (44) 35.17 (49) 13.78 (11) -1.33 (38) 11.23 (57)
Vanguard Spliced Mid Cap Index 6.19 (59) -41.80 (71) 40.49 (34) 25.69 (32) -1.91 (41) 16.04 (43) 35.21 (48) 13.83 (10) -1.28 (38) 11.25 (57)
IM U.S. Mid Cap Equity (MF) Median 8.79 -39.27 36.27 23.85 -3.25 15.34 34.61 8.22 -2.34 12.13
Baron Growth Inst - - - 24.32 (54) 1.51 (12) 16.74 (22) 38.69 (24) 4.66 (80) -4.06 (82) 6.31 (42)
Baron Growth Rtl 6.59 (85) -39.18 (32) 34.24 (66) 24.01 (55) 1.24 (13) 16.43 (25) 38.32 (25) 4.40 (81) -4.31 (84) 6.04 (46)
Russell Midcap Growth Index 11.43 (73) -44.32 (68) 46.29 (24) 26.38 (40) -1.65 (33) 15.81 (34) 35.74 (46) 11.90 (13) -0.20 (47) 7.33 (32)
IM U.S. Mid Cap Growth Equity (MF) Median 17.10 -40.90 40.17 24.65 -3.20 14.60 35.50 7.38 -0.52 5.40
International Equity
Artisan International Inv 19.73 (13) -46.96 (98) 39.77 (10) 5.91 (72) -7.26 (15) 25.39 (4) 25.18 (7) -0.97 (10) -3.85 (80) -9.66 (100)
MSCI EAFE Index (Net) 11.17 (72) -43.38 (66) 31.78 (51) 7.75 (54) -12.14 (47) 17.32 (65) 22.78 (15) -4.90 (39) -0.81 (39) 1.00 (49)
MSCI AC World ex USA Index (Net) 16.65 (22) -45.53 (86) 41.45 (5) 11.15 (21) -13.71 (76) 16.83 (71) 15.29 (83) -3.87 (25) -5.66 (86) 4.50 (14)
IM International Large Cap Equity (MF) Median 12.63 -42.44 31.91 8.10 -12.43 18.59 19.99 -5.34 -1.63 0.91
Returns for periods greater than one year are annualized.Returns are expressed as percentages.
Page 20
Great West Portfolio Fund PIMCO Total Return Adm PIMCO Inflation Response MultiAsst Inst
TRP Retirement 2005 TRP Retirement 2010 TRP Retirement 2015
TRP Retirement 2020 TRP Retirement 2025 TRP Retirement 2030
TRP Retirement 2035 TRP Retirement 2040 TRP Retirement 2045
TRP Retirement 2050 TRP Retirement 2055 BlackRock S&P 500 Stock
Dodge & Cox Stock Vanguard Mid Cap Index Baron Growth Inst
Artisan International Inv
-9.0
-6.0
-3.0
0.0
3.0
6.0
9.0
12.0
15.0
An
nu
aliz
ed
Re
turn
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0Annualized Standard Deviation
Fairfax County Public Schools
Risk Profile
3 Years Ending March 31, 2017
Page 21
Fairfax County Public Schools – Watch List Review
Process
U.S FIXED INCOME
Great West Portfolio Fund No No No No No N/R Green Green Green Green
PIMCO Total Return Adm No No No No No Buy Green Green Green Yellow
PIMCO Inflation Response MultiAsst Inst No No No No No Buy Green Green Green Green
TARGET DATE
T. Rowe Price Retirement Series No No No No No Buy Green Green Green Green
U.S. EQUITY
BlackRock S&P 500 Stock No No No No No Buy Green Green Green Green
Dodge & Cox Stock Fund No No No No No Buy Green Green Green Yellow
Vanguard Mid Cap Index No No No No No Buy Green Green Green Green
Baron Growth Instl No No No Yes No Qualified Green Yellow Yellow Yellow
INTERNATIONAL EQUITY
Artisan International Inv No No No Yes No Qualified Green Yellow Green Green
StatusGreenYellowRed
Changes in Watch List designations from the previous quarter are highlighted in bold.Passively managed index funds are expected to track their benchmark within a reasonable margin.
Suggested ActionNumber of Criteria Met
3rd Quarter
2016
1st Quarter
2017
Watch List StatusPerformance
4th Quarter
2016
Overall Manager Research
Rating
4 or more affirmatives or “Yellow” for 4 consecutive quarters
1 or less affirmatives
Full fund review and recommendation for action will be made
Organization/Staff
2 to 3 affirmatives
Underperformed / Adverse Tracking in
3 of 4 Trailing Calendar Quarters
Significant Organizational
Change
Adverse Change in Portfolio
Manager
Active – On “closely monitored list”Active – No action required
2nd Quarter
2016
Diverged from Strategy and/or
Portfolio Characteristics
Underperformed / Adverse Tracking During Trailing 5-
Years
Page 22
Watch List Guidelines AHIC Investment Option Review Criteria 1. If the Fund has underperformed its benchmark over the most recent trailing five-year period
– If passively managed, the fund’s return must be no more than 0.5 percentage points above or below the return of the benchmark
2. If the fund has underperformed its benchmark in three of the most recent four calendar quarters 3. If the Fund diverged from its strategy and / or portfolio characteristics 4. Adverse change in portfolio manager 5. Merger with another fund 6. Significant organizational change Suggested Action Triggers 1. When an investment fund is placed on the Red Watch List, a formal fund retention meeting may be
conducted. At this meeting, the fund’s representative would be asked to address all relevant issues and explain why the fund should be retained. After this retention meeting, the Investment Committee may elect to either terminate the fund or grant it a one-year extension.
2. If a fund is granted the one-year extension described above and remains on the Watch List for this period, the fund may be terminated unless the Committee determines that an alternate course of action is appropriate.
Special Circumstances 1. In the event of a major change to the fund (e.g., investments, ownership, and staffing), the Committee retains
the right to immediately terminate any fund without invoking the Watch List criteria in any fashion.
Page 23
Fairfax County Public Schools 457(b) Plan As of March 31, 2017
Investment Option Participants Investment Options Participants
Great West Portfolio 1,028 One 538
PIMCO Total Return 1,095 Two 353
PIMCO Inflation Response MultiAsst 44 Three 261
T Rowe Price Retirement 2005 35 Four 317
T Rowe Price Retirement 2010 14 Five 285
T Rowe Price Retirement 2015 39 Six 264
T Rowe Price Retirement 2020 75 Seven 187
T Rowe Price Retirement 2025 96 Eight 26
T Rowe Price Retirement 2030 72 More than Eight 30
T Rowe Price Retirement 2035 105
T Rowe Price Retirement 2040 71
T Rowe Price Retirement 2045 55
T Rowe Price Retirement 2050 26 Item Result
T Rowe Price Retirement 2055 52 Participation Rate 57.32%
BlackRock S&P 500 Stock 962 Number of Participants with Account Balances 2,261
Dodge & Cox Stock 1,002 Average Deferral Rate 16.70%
Vanguard Mid Cap Index 1,206 Average Number of Funds per Participant 3.62
Baron Growth 1,113 Average Account Balance $84,821.86
Artisan International 1,095
Investment Option Participants
Great-West Portfolio Fund 66 Item Result
PIMCO Total Return Admin 78 Number of Internet Accesses 11,991
PIMCO Inflation Response MultiAsst 4 VRU Calls 224
T Rowe Price Retirement 2005 1
T Rowe Price Retirement 2015 2
T Rowe Price Retirement 2020 4
T Rowe Price Retirement 2025 6
T Rowe Price Retirement 2030 2
T Rowe Price Retirement 2035 6
T Rowe Price Retirement 2040 7
T Rowe Price Retirement 2045 5
T Rowe Price Retirement 2050 4
T Rowe Price Retirement 2055 3
BlackRock S & P 500 Stock 54
Dodge & Cox Stock 71
Vanguard Mid Cap Index Ins 76
Baron Growth Instl 82
Artisan International Inv 72
* Information directly provided by Empower Retirement.
Demographic Information
Participants per Investment Option
Participants with Balance in One Investment Option
Administration Statistics
Investment Options per Participant
Other Demographics
Page 24
457(b) Plan Statistics
457(b) 403(b) Contributions Mar. 2015 $ 1,439,000 $ 3.7 million Contributions Mar. 2016 $ 1,361,000 $ 3.8 million Contributions Mar. 2017 $ 1,441,000 $ 4.1 million Assets Mar. 31, 2015 $167.0 million Assets Mar. 31, 2016 $167.0 million Assets Mar. 31, 2017 $192.1 million Number of Participants Mar. 2015 2261 5499 Number of Participants Mar. 2016 2236 5468 Number of Participants Mar. 2017 2261 5586 Average Contribution/Month – Mar. 2015 $ 979/mo; $227/biweek Average Contribution/Month – Mar. 2016 $ 945/mo; $215/biweek Average Contribution/Month – Mar. 2017 $1026/mo; $237/biweek
403(b)
Average Contribution/Month – Mar. 2017 $782/mo; $208/biweek Number of Employees Currently Contributing to 457(b): 1284/mo; 57/biweek Number of Employees Currently Contributing to 403(b): 5016/mo; 570/biweek Number of Employees Currently Contributing to both 457 & 403(b): 406 total
Page 25
403(b) Plan Participants
Age Monthly Bi-Weekly<21 0 121-25 49 626-30 375 931-35 566 1736-40 583 4241-45 700 5946-50 749 8551-55 705 10656-60 703 11761-65 434 7666-70 121 3271-75 28 1076-80 3 981-85 0 086-90 0 1
Total 5016 570
0
100
200
300
400
500
600
700
800
<21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85En
rollm
ent
Age Range
403(b) Monthly Plan Participants
0
20
40
60
80
100
120
140
<21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85 86-90
Enro
llmen
t
Age Range
403(b) Bi-Weekly Plan Participants
Page 26
457 Plan Participants
Age Monthly Bi-Weekly<21 0 021-25 4 026-30 53 031-35 100 436-40 116 341-45 156 446-50 198 1651-55 230 1156-60 229 861-65 157 766-70 32 271-75 9 2
Total 1284 57
0
50
100
150
200
250
<21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75En
rollm
ent
Age Range
457 Monthly Plan Participants
02468
1012141618
<21 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75
Enro
llmen
t
Age Range
457 Bi-Weekly Plan Participants
Page 27
Fairfax County Public Schools 457(b) Plan
Contribution Analysis
Stable Value17%
Fixed Income9%
Real Return0%
Large Cap Blend (Passive)
18%
Large Cap Blend (Active)
10%
Mid Cap Blend (Passive)14%
Small Cap Growth10%
International8%
Lifecycle14%
1st Quarter 2017 Contribution Allocation
Stable Value15%
Fixed Income9%
Real Return0%
Large Cap Blend (Passive)
16%
Large Cap Blend (Active)
8%
Mid Cap Blend (Passive)14%
Small Cap Growth11%
International9%
Lifecycle18%
4th Quarter 2016 Contribution Allocation
Page 28
Relative Ranking (3 Years Rolling) Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
Style Map (Since Inception - 36 Months Rolling) Style History (Since Inception - 36 Months Rolling)
PIMCO Total Return Adm Blmbg. Barc. U.S. Aggregate
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 4/08 4/09 4/10 4/11 4/12 4/13 4/14 4/15 4/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >PIMCO Total Return Adm >Blmbg. Barc. U.S. Aggregate
PIMCO Total Return Adm 20 12 4 6 N/A 13
Blmbg. Barc. U.S. Aggregate 20 7 1 0 7 N/A
Style History Mar-2017 Average Style Exposure
Cap
ital
izat
ion
Manager Style
Barclays Capital Government Index
Barclays Capital U.S. Long Gov/CreditBarclays Capital 1-3yr Gov/Credit
Barclays Capital U.S. Credit Index
Barclays U.S. Credit Index Barclays 1-3yr Gov/Credit
Barclays Government Index Barclays U.S. Long Gov/Credit
0.0
25.0
50.0
75.0
100.0
11/97 5/99 11/00 5/02 11/03 5/05 11/06 5/08 11/09 5/11 11/12 5/14 11/15 3/17
PIMCO Total Return Adm 03/31/17
Page 29
Relative Ranking (3 Years Rolling)
Relative Performance (09/01/11 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
PIMCO Inflation Response MultiAsst Inst PIMCO IRMA Benchmark
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >PIMCO Inflation Response MultiAsst Inst >PIMCO IRMA Benchmark
PIMCO Inflation Response MultiAsst Inst 11 0 0 10 N/A 8
PIMCO IRMA Benchmark 11 0 0 10 3 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
4.0
8.0
-4.0
-8.0
Re
turn
(%)
9/11 12/11 3/12 6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
PIMCO Inflation Response MultiAsst Inst 03/31/17
Page 30
Asset Allocation for T. Rowe Price Retirement Funds
As of March 31, 2017
0%
20%
40%
60%
80%
100%
TargetBalanced
Target2005
Target2010
Target2015
Target2020
Target2025
Target2030
Target2035
Target2040
Target2045
Target2050
Target2055
Target2060
Fixed Income US Equity Non-US Equity Specialty Funds*
________________________________
* Specialty Funds include T. Rowe Price Real Assets Fund
Page 31
Asset Allocation: T. Rowe Price Retirement Funds
Balanced Fund
2005 Fund
2010 Fund
2015 Fund
2020 Fund
2025 Fund
2030 Fund
2035 Fund
2040 Fund
2045 Fund
2050 Fund
2055 Fund
2060 Fund
Fixed Income 59.9% 61.4% 56.1% 47.7% 37.9% 30.2% 22.8% 17.0% 12.0% 10.8% 10.2% 10.1% 10.2%
T. Rowe Price Inflation Focused Bond 30.0% 18.1% 15.7% 11.6% 6.6% 3.6% 1.7% 0.2% 0.3% 0.3% 0.3% 0.2% 0.2%
T. Rowe Price New Income 21.0% 30.6% 28.5% 25.5% 22.1% 18.8% 14.9% 11.9% 8.4% 7.6% 7.0% 7.0% 7.0%
T. Rowe Price High Yield 3.3% 4.8% 4.5% 4.0% 3.5% 2.9% 2.3% 1.8% 1.2% 1.1% 1.1% 1.1% 1.1%
T. Rowe Price Intl Bond 2.5% 3.6% 3.3% 2.9% 2.6% 2.1% 1.7% 1.3% 0.9% 0.8% 0.8% 0.8% 0.8%
T. Rowe Price EM Bond 3.1% 4.4% 4.1% 3.7% 3.2% 2.8% 2.2% 1.7% 1.2% 1.0% 1.1% 1.0% 1.0%
U.S. Equity 26.8% 25.7% 29.2% 35.1% 41.8% 47.0% 52.0% 55.7% 59.1% 59.9% 60.5% 60.5% 60.6%
T. Rowe Price Value 0.0% 0.0% 0.0% 1.5% 5.9% 9.5% 12.8% 15.8% 18.0% 18.5% 18.8% 18.8% 18.8%
T. Rowe Price Equity Index 500 20.6% 19.7% 22.6% 22.9% 19.0% 15.7% 12.7% 9.6% 7.7% 7.1% 7.3% 7.2% 7.3%
T. Rowe Price Growth Stock 0.0% 0.0% 0.0% 2.7% 7.5% 11.3% 14.9% 18.0% 20.4% 21.0% 21.2% 21.3% 21.2%
T. Rowe Price Mid-Cap Value 1.6% 1.5% 1.7% 2.0% 2.4% 2.7% 2.9% 3.1% 3.3% 3.4% 3.4% 3.4% 3.4%
T. Rowe Price Mid-Cap Growth 1.5% 1.5% 1.6% 1.9% 2.2% 2.5% 2.8% 3.0% 3.2% 3.2% 3.2% 3.2% 3.2%
T. Rowe Price Small-Cap Value 1.0% 1.0% 1.1% 1.4% 1.6% 1.8% 2.0% 2.2% 2.3% 2.3% 2.3% 2.3% 2.3%
T. Rowe Price Small-Cap Stock 1.3% 1.2% 1.4% 1.5% 1.8% 1.9% 2.1% 2.3% 2.4% 2.5% 2.5% 2.5% 2.5%
T. Rowe Price New Horizons 0.8% 0.8% 0.9% 1.1% 1.3% 1.5% 1.6% 1.7% 1.8% 1.8% 1.8% 1.8% 1.8%
Non-U.S. Equity 12.1% 11.7% 13.4% 15.8% 18.6% 21.0% 23.2% 25.0% 26.5% 27.0% 26.9% 27.0% 26.8%
T. Rowe Price Intl Value Equity Fund 3.5% 3.4% 3.9% 4.7% 5.4% 6.1% 6.8% 7.3% 7.8% 7.9% 7.9% 7.9% 7.9%
T. Rowe Price Overseas Stock 3.6% 3.5% 4.0% 4.7% 5.6% 6.4% 7.1% 7.6% 8.1% 8.2% 8.2% 8.2% 8.2%
T. Rowe Price International Stock 3.4% 3.3% 3.7% 4.4% 5.2% 5.9% 6.5% 7.0% 7.4% 7.5% 7.5% 7.5% 7.5%
T. Rowe Price Emerging Markets Stock 1.5% 1.5% 1.7% 2.0% 2.3% 2.6% 2.9% 3.1% 3.3% 3.4% 3.3% 3.3% 3.2%
Real Assets 1.0% 1.0% 1.1% 1.3% 1.5% 1.7% 1.9% 2.0% 2.1% 2.2% 2.2% 2.2% 2.2%
T. Rowe Price Real Assets 1.0% 1.0% 1.1% 1.3% 1.5% 1.7% 1.9% 2.0% 2.1% 2.2% 2.2% 2.2% 2.2%
MM/Short Term Investment 0.2% 0.2% 0.2% 0.1% 0.2% 0.1% 0.1% 0.2% 0.3% 0.3% 0.2% 0.2% 0.3%
T. Rowe Price U.S. Treasury Money Fund 0.2% 0.2% 0.2% 0.1% 0.2% 0.1% 0.1% 0.2% 0.3% 0.3% 0.2% 0.2% 0.3%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
As of March 31, 2017
Page 32
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2005 TRP Retirement 2005 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2005 >TRP Retirement 2005 Index
TRP Retirement 2005 20 20 15 0 N/A 13
TRP Retirement 2005 Index 20 20 13 0 7 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
2.0
4.0
-2.0
-4.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2005 03/31/17
Page 33
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2010 TRP Retirement 2010 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2010 >TRP Retirement 2010 Index
TRP Retirement 2010 20 20 20 0 N/A 13
TRP Retirement 2010 Index 20 20 17 0 7 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
2.0
4.0
-2.0
-4.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2010 03/31/17
Page 34
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2015 TRP Retirement 2015 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2015 >TRP Retirement 2015 Index
TRP Retirement 2015 20 20 19 0 N/A 13
TRP Retirement 2015 Index 20 20 20 0 7 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2015 03/31/17
Page 35
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2020 TRP Retirement 2020 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2020 >TRP Retirement 2020 Index
TRP Retirement 2020 20 20 20 0 N/A 15
TRP Retirement 2020 Index 20 20 20 0 5 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2020 03/31/17
Page 36
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2025 TRP Retirement 2025 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2025 >TRP Retirement 2025 Index
TRP Retirement 2025 20 20 20 0 N/A 17
TRP Retirement 2025 Index 20 20 20 0 3 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2025 03/31/17
Page 37
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2030 TRP Retirement 2030 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2030 >TRP Retirement 2030 Index
TRP Retirement 2030 20 20 20 0 N/A 18
TRP Retirement 2030 Index 20 20 20 0 2 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2030 03/31/17
Page 38
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2035 TRP Retirement 2035 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2035 >TRP Retirement 2035 Index
TRP Retirement 2035 20 20 19 0 N/A 17
TRP Retirement 2035 Index 20 20 20 0 3 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2035 03/31/17
Page 39
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2040 TRP Retirement 2040 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2040 >TRP Retirement 2040 Index
TRP Retirement 2040 20 20 19 0 N/A 16
TRP Retirement 2040 Index 20 20 20 0 4 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2040 03/31/17
Page 40
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2045 TRP Retirement 2045 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2045 >TRP Retirement 2045 Index
TRP Retirement 2045 20 20 19 0 N/A 16
TRP Retirement 2045 Index 20 20 20 0 4 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2045 03/31/17
Page 41
Relative Ranking (3 Years Rolling)
Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
TRP Retirement 2050 TRP Retirement 2050 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 9/12 12/12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >TRP Retirement 2050 >TRP Retirement 2050 Index
TRP Retirement 2050 20 20 19 0 N/A 16
TRP Retirement 2050 Index 20 20 20 0 4 N/A
Cumulative Annualized Over/Under Relative Performance Over/Under Performance
0.0
3.0
6.0
-3.0
-6.0
Re
turn
(%)
4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11 10/11 4/12 10/12 4/13 10/13 4/14 10/14 4/15 10/15 4/16 10/16 3/17
TRP Retirement 2050 03/31/17
Page 42
Relative Ranking (3 Years Rolling) Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
Style Map (Since Inception - 36 Months Rolling) Style History (Since Inception - 36 Months Rolling)
BlackRock S&P 500 Stock S&P 500 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
0.4
-0.2
-0.4
-0.6
Re
turn
(%)
4/07 4/08 4/09 4/10 4/11 4/12 4/13 4/14 4/15 4/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >BlackRock S&P 500 Stock >S&P 500 Index
BlackRock S&P 500 Stock 20 20 12 0 N/A 0
S&P 500 Index 20 20 20 0 20 N/A
Style History Mar-2017 Average Style Exposure
Cap
ital
izat
ion
Manager Style
Large Cap Growth
Small Cap GrowthSmall Cap Value
Large Cap Value
Russell 1000 Growth Index Russell 1000 Value Index
Russell 2000 Growth Index Russell 2000 Value Index
0.0
25.0
50.0
75.0
100.0
9/96 6/98 3/00 12/01 9/03 6/05 3/07 12/08 9/10 6/12 3/14 3/17
BlackRock S&P 500 Stock 03/31/17
Page 43
Relative Ranking (3 Years Rolling) Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
Style Map (Since Inception - 36 Months Rolling) Style History (Since Inception - 36 Months Rolling)
Dodge & Cox Stock S&P 500 Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
8.0
16.0
-8.0
-16.0
-24.0
Re
turn
(%)
4/07 4/08 4/09 4/10 4/11 4/12 4/13 4/14 4/15 4/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >Dodge & Cox Stock >S&P 500 Index
Dodge & Cox Stock 20 15 11 1 N/A 10
S&P 500 Index 20 20 11 0 10 N/A
Style History Mar-2017 Average Style Exposure
Cap
ital
izat
ion
Manager Style
Large Cap Growth
Small Cap GrowthSmall Cap Value
Large Cap Value
Russell 1000 Growth Index Russell 1000 Value Index
Russell 2000 Growth Index Russell 2000 Value Index
0.0
25.0
50.0
75.0
100.0
2/82 11/84 8/87 5/90 2/93 11/95 8/98 5/01 2/04 11/06 8/09 5/12 2/15 3/17
Dodge & Cox Stock 03/31/17
Page 44
Relative Ranking (3 Years Rolling) Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
Style Map (Since Inception - 36 Months Rolling) Style History (Since Inception - 36 Months Rolling)
Vanguard Mid Cap Index Vanguard Spliced Mid Cap Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.1
0.2
-0.1
-0.2
Re
turn
(%)
4/07 4/08 4/09 4/10 4/11 4/12 4/13 4/14 4/15 4/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >Vanguard Mid Cap Index >Vanguard Spliced Mid Cap Index
Vanguard Mid Cap Index 20 20 11 0 N/A 0
Vanguard Spliced Mid Cap Index 20 20 12 0 20 N/A
Style History Mar-2017 Average Style Exposure
Cap
ital
izat
ion
Manager Style
Large Cap Growth
Small Cap GrowthSmall Cap Value
Large Cap Value
Russell 1000 Growth Index Russell 1000 Value Index
Russell 2000 Growth Index Russell 2000 Value Index
0.0
25.0
50.0
75.0
100.0
7/01 10/02 1/04 4/05 7/06 10/07 1/09 4/10 7/11 10/12 1/14 4/15 3/17
Vanguard Mid Cap Index 03/31/17
Page 45
Relative Ranking (3 Years Rolling) Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
Style Map (Since Inception - 36 Months Rolling) Style History (Since Inception - 36 Months Rolling)
Baron Growth Rtl Russell Midcap Growth Index
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
6.0
12.0
18.0
-6.0
-12.0
Re
turn
(%)
4/07 4/08 4/09 4/10 4/11 4/12 4/13 4/14 4/15 4/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >Baron Growth Rtl >Russell Midcap Growth Index
Baron Growth Rtl 20 12 8 3 N/A 6
Russell Midcap Growth Index 20 20 12 0 14 N/A
Style History Mar-2017 Average Style Exposure
Cap
ital
izat
ion
Manager Style
Large Cap Growth
Small Cap GrowthSmall Cap Value
Large Cap Value
Russell 1000 Growth Index Russell 1000 Value Index
Russell 2000 Growth Index Russell 2000 Value Index
0.0
25.0
50.0
75.0
100.0
3/98 9/99 3/01 9/02 3/04 9/05 3/07 9/08 3/10 9/11 3/13 9/14 3/16 3/17
Baron Growth Rtl 03/31/17
Page 46
Relative Ranking (3 Years Rolling) Relative Performance (04/01/07 to 03/31/17)
Relative Ranking vs. Peers (3 Years Rolling)
Style Map (Since Inception - 36 Months Rolling) Style History (Since Inception - 36 Months Rolling)
Artisan International Inv
MSCI EAFE Index (Net)
MSCI AC World ex USA Index (Net)
0.0
25.0
50.0
75.0
100.0
Re
turn
Pe
rce
nti
le R
an
k
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
6.0
12.0
18.0
-6.0
-12.0
Re
turn
(%)
4/07 4/08 4/09 4/10 4/11 4/12 4/13 4/14 4/15 4/16 3/17
Number ofObservations
>=Median Top Quartile Bottom Quartile >Artisan International Inv >MSCI EAFE Index (Net) >MSCI AC World ex USA Index (Net)
Artisan International Inv 20 17 15 2 N/A 17 18
MSCI EAFE Index (Net) 20 17 3 0 3 N/A 16
MSCI AC World ex USA Index (Net) 20 5 0 12 2 4 N/A
Style History Mar-2017 Average Style Exposure
Cap
ital
izat
ion
Manager Style
MSCI EAFE Growth Index
MSCI USA GrowthMSCI USA Value
MSCI EAFE Value Index
MSCI EAFE Value Index MSCI EAFE Growth Index
MSCI USA Growth MSCI USA Value
0.0
25.0
50.0
75.0
100.0
6/01 9/02 12/03 3/05 6/06 9/07 12/08 3/10 6/11 9/12 12/13 3/15 3/17
Artisan International Inv 03/31/17
Page 47
Fairfax County Public Schools As of March 31, 2017
Peer Group $ Weighted $ Weighted
Median Median Average Average Difference2
U.S FIXED INCOME
Great West Portfolio Fund Stable Value 0.89%3N/A N/A 0.52%4
N/A N/A
PIMCO Total Return Adm US Broad Market Core Fixed 0.72% 0.49% 0.43% 0.53% 0.38% 0.19%
PIMCO Inflation Response MultiAsst Inst Flexible Portfolio 0.86% 1.00% 0.84% 1.08% 0.92% -0.22%
TARGET DATE
T. Rowe Price Retirement 2005 Mixed Asset Target Today50.60% 0.55% 0.49% 0.54% 0.52% 0.06%
T. Rowe Price Retirement 2010 Mixed Asset Target 201050.59% 0.53% 0.59% 0.55% 0.57% 0.04%
T. Rowe Price Retirement 2015 Mixed Asset Target 201550.62% 0.59% 0.62% 0.60% 0.60% 0.02%
T. Rowe Price Retirement 2020 Mixed Asset Target 202050.66% 0.55% 0.65% 0.53% 0.62% 0.13%
T. Rowe Price Retirement 2025 Mixed Asset Target 202550.69% 0.60% 0.69% 0.62% 0.65% 0.07%
T. Rowe Price Retirement 2030 Mixed Asset Target 203050.72% 0.65% 0.72% 0.67% 0.68% 0.05%
T. Rowe Price Retirement 2035 Mixed Asset Target 203550.74% 0.67% 0.74% 0.67% 0.70% 0.07%
T. Rowe Price Retirement 2040 Mixed Asset Target 204050.76% 0.71% 0.76% 0.70% 0.70% 0.06%
T. Rowe Price Retirement 2045 Mixed Asset Target 204550.76% 0.69% 0.67% 0.70% 0.68% 0.06%
T. Rowe Price Retirement 2050 Mixed Asset Target 205050.76% 0.70% 0.74% 0.71% 0.70% 0.05%
T. Rowe Price Retirement 2055 Mixed Asset Target 2055+50.76% 0.70% 0.76% 0.70% 0.71% 0.06%
U.S. EQUITY
BlackRock S&P 500 Stock S&P 500 Index Funds (Passive) 0.04% 0.22% 0.04% 0.31% 0.07% -0.27%
Dodge & Cox Stock U.S. Large Cap Core Equity 0.52% 0.80% 0.46% 0.84% 0.54% -0.32%
Vanguard Mid Cap Index U.S. Mid Cap Equity 0.07% 0.97% 0.78% 1.00% 0.80% -0.93%
Baron Growth Inst U.S. Mid Cap Growth Equity 1.05% 1.17% 0.90% 1.28% 1.04% -0.23%
INTERNATIONAL EQUITY
Artisan International Inv International Equity All6 1.19% 1.04% 0.72% 1.05% 0.78% 0.14%
2 Difference column represents the difference between the fund's expense ratio and the Peer Group's average expense ratio.
Fund NameFund's
Expense
Ratio
1 All information, unless noted otherwise, was created using Morningstar audited expense ratio data as of December 31, 2016. Since mutual fund expense ratios do not change frequently, AHIC believes this study to be a relevant comparison for up to a year, at which time the data will be updated. For complete information on AHIC methodologies and additional information on the expense ratio distributions, contact your AHIC consultant. Mutual fund expense peer groups were constructed by Investment Metrics, and are consistent with the peer groups shown in other exhibits comparing performance, risk-metrics and a multitude of other characteristics.
3 In lieu of an expense ratio, Great West assumes a margin of 89 basis points on the Portfolio Fund. This reflects the gross investment yield of the assets minus the crediting rate and cost of maintaining regulatory capital requirements.
6 Combines multiple Investment Metrics peer groups.
5 Mixed Asset peer groups utilize prospectus net expense ratio information due to the nature of the asset classand common use of a Fund of Fund structure.
4 Stable value fund average calculated using Hueler Universe data for a mandate size of $1 million in assets.
Cost Analysis
Expense Ratio Peer Group Data1
Page 48
Manager Research
Page 49
Aon Hewitt 28 March 2017 Retirement and Investment
Risk. Reinsurance. Human Resources.
Flash Report
Comments on the Joint Statement from Bill Gross and Pacific Investment Management Company Recommendation On 27 March 2017, Bill Gross and Pacific Investment Management Company LLC (PIMCO) released a joint statement announcing an amicable settlement of the October 2015 lawsuit filed by Mr. Gross. Full terms and monetary details of the settlement are confidential. We asked PIMCO to respond after further details of the settlement were published by a third party, but it declined.
Aon Hewitt is not changing any of our ratings due to the statement. Clients are advised not to make any changes on the basis of this announcement.
Background
Mr. Gross resigned as PIMCO’s Chief Investment Officer on 26 September 2014 to take a position at Janus Capital Group. On 9 October 2015, Mr. Gross sued PIMCO claiming constructive termination and sought compensation in excess of $200m. PIMCO responded in court that Mr. Gross had no legal claim to compensation because his rights ceased once he was no longer employed by PIMCO. Mr. Gross and PIMCO settled the matter out of court, and the lawsuit was dismissed without prejudice on 27 March 2017.
PIMCO had made prior provisions to ensure that there was no impact to investment operations. All monetary proceeds paid to Mr. Gross will be bestowed to charity. In addition, the PIMCO Foundation is granting Mr. Gross the title of Director Emeritus and an award will be named in his honor. PIMCO is immortalizing its original founders with the creation of the Founders Room at its Newport Beach headquarters.
Enclosure: Joint Statement from Bill Gross and Pacific Investment Management Company LLC
Aon Hewitt Retirement and Investment
Flash Report – Pimco 2
Disclaimer This document has been produced by Aon Hewitt’s Global Investment Management (GIM) Research Team, a division of Aon plc and is appropriate solely for institutional investors. Nothing in this document should be treated as an authoritative statement of the law on any particular aspect or in any specific case. It should not be taken as financial advice and action should not be taken as a result of this document alone. Consultants will be pleased to answer questions on its contents but cannot give individual financial advice. Individuals are recommended to seek independent financial advice in respect of their own personal circumstances. The information contained herein is given as of the date hereof and does not purport to give information as of any other date. The delivery at any time shall not, under any circumstances, create any implication that there has been a change in the information set forth herein since the date hereof or any obligation to update or provide amendments hereto. The information contained herein is derived from proprietary and non-proprietary sources deemed by Aon Hewitt to be reliable and are not necessarily all inclusive. Aon Hewitt does not guarantee the accuracy or completeness of this information and cannot be held accountable for inaccurate data provided by third parties. Reliance upon information in this material is at the sole discretion of the reader. This document does not constitute an offer of securities or solicitation of any kind and may not be treated as such, i) in any jurisdiction where such an offer or solicitation is against the law; ii) to anyone to whom it is unlawful to make such an offer or solicitation; or iii) if the person making the offer or solicitation is not qualified to do so. If you are unsure as to whether the investment products and services described within this document are suitable for you, we strongly recommend that you seek professional advice from a financial adviser registered in the jurisdiction in which you reside. We have not considered the suitability and/or appropriateness of any investment you may wish to make with us. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction, including the one in which you reside. Aon Hewitt Limited is authorized and regulated by the Financial Conduct Authority. Registered in England & Wales No. 4396810. When distributed in the US, Aon Hewitt Investment Consulting, Inc. (“AHIC”) is a registered investment adviser with the Securities and Exchange Commission (“SEC”). AHIC is a wholly owned, indirect subsidiary of Aon plc. In Canada, Aon Hewitt Inc. and Aon Hewitt Investment Management Inc. (“AHIM”) are indirect subsidiaries of Aon plc, a public company trading on the NYSE. Investment advice to Canadian investors is provided through AHIM, a portfolio manager, investment fund manager and exempt market dealer registered under applicable Canadian securities laws. Regional distribution and contact information is provided below. Contact your local Aon representative for contact information relevant to your local country if not included below. Aon plc/Aon Hewitt Limited Registered office The Aon Centre The Leadenhall Building 122 Leadenhall Street London EC3V 4AN
Aon Hewitt Investment Consulting, Inc. 200 E. Randolph Street Suite 1500 Chicago, IL 60601 USA
Aon Hewitt Inc./Aon Hewitt Investment Management Inc. 225 King Street West, Suite 1600 Toronto, ON M5V 3M2 Canada
Copyright © 2017 Aon plc
International Equity Competitive Review
Page 52
About This Material
Aon Hewitt Investment Consulting (AHIC) has been asked to identify our highest conviction Non-U.S. equity investment strategies. We have identified four managers from our list of “Buy” rated strategies, which we believe are appropriate for comparison.
Non-U.S. Equity Candidates
Firm Product
Artisan Partners LP (“Artisan”) Artisan International Fund
Harding Loevner Management LP (“Harding
Loevner”) Harding Loevner International Equity Portfolio
Lazard Asset Management LLC (“Lazard”) Lazard International Equity Portfolio
MFS Investment Management (“MFS”) MFS International Equity Fund
Marathon Asset Management LLP (“Marathon”) Harbor Diversified International All Cap Fund1
On the following pages, we profile Artisan International Fund and four proposed managers providing qualitative and quantitative information.
___________________________________
1 Harbor Funds is the distributor for Marathon’s Non-U.S. strategy
Page 53
Depth and Stability
Ownership structure
Compensation policies
Professional turnover
Succession planning
Business focus
Level of assets
Culture of organization
Alignment of interests
Ethical standards
Consistent and Deep Approach
Consistent investment
philosophy
Repeatable process
Strong research capabilities
Demonstrated knowledge
Adherence to style
Attribution matches style
Proper risk management
Legitimate and Repeatable
In line with style
Attribution analysis
Understanding of underperformance
Results not driven by a “home run”
Composite construction
Performance dispersion
Identifying Top Managers Using Qualitative and Quantitative Metrics
Page 54
Manager Visit
We ask the questions
Listen to the answers
Pre-meeting
Discuss key issues
Set the agenda
Share with manager
Initial inputs
News flow
Quantitative Rating
Portfolio analysis
Intro Meetings
Rating Discussion
Full airing of issues with consultants and specialists
Post Meeting
Do they do what they say they do?
Rating recommendation
Implementation of Research
Meetings
Manager selections
Rating Sheet
Review and update
Share with manager
Global Manager Monitor Database
On-going Monitoring
Communications with Consultants & Clients
Quarterly Reviews
1 2
3 4
5 6
7
Manager Research Process
Page 55
Artisan Harding Loevner Lazard MFS Marathon (Harbor)
Location of Firm Milwaukee, WI Bridgewater, NJ New York, NY Boston, MA London, England
Year Founded 1994 1989 1970 1924 1986
Ownership Structure Wholly Owned 40% Employee, 60%
Parent Owned 100% Parent Owned
20% Employee Owned, 80% Parent Owned
70% Employee Owned, 30% Other Ownership
GIPS Compliant Yes Yes Yes Yes Yes
Total Firm AUM $95.8 M $44.9 B $186.5 B $425.6 B $67.1 B3
Total Strategy AUM $23.5 M $10.3 B $13.5 B $22.3 B $176 M3
Total Number of Investment Professionals2 16 29 270 215 14
Product Name Artisan International
Fund
Harding Loevner
International Equity
Portfolio
Lazard International
Equity Portfolio
MFS International Equity
Fund
Harbor Diversified
International All Cap
Fund3
Strategy Inception 1/1996 12/1989 10/1991 3/1996 7/1994
Investment Vehicle Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund
Ticker ARTIX HLMIX LZIEX MIEIX HNIDX
Portfolio Manager(s)/Start Year
at Firm Mark Yockey/1995
Andrew West/ 2006 Ferrill Roll/1996 Alex Walsh/1994
Michael Fry/2005 Marcus Smith/1994
Daniel Ling/2006
Neil Ostrer/1986
William Arah/1987
Platform Availability Yes Yes Yes Yes Yes
Redemption Fees None 2.0% within first 90 days None None None
Minimum Investment $250,000 $100,000 $100,000 $3 M $50,000
Net Expense Ratio4 0.84% 0.69% 0.70% 0.71% 0.80%
Firm & Product Details1
As of December 31, 2016
___________________________________
1 Information obtained from investment managers and eVestment Alliance 2 Includes Portfolio Managers, Research Analysts, Traders, and Economists. Does not include Client Service, Marketing, and Other Staff 3 These Asset Under Management figures are representative of Marathon 4Net Expense Ratio defined as Total Expense Ratio less Revenue Sharing Page 56
Summary Characteristics1
As of December 31, 2016
Incumbent Harding
Loevner Lazard MFS
Marathon
(Harbor)
Management Strategy Active Active Active Active Active
Stated Benchmark MSCI EAFE MSCI ACWI ex US MSCI EAFE MSCI ACWI ex US MSCI ACWI ex US
Capitalization Emphasis Large Cap All Cap All Cap Large Cap All Cap
Style Emphasis Growth Growth Core Core Core
Investment Approach Fundamental Fundamental Fundamental Fundamental Fundamental
Screening Approach Bottom-Up Bottom-Up Bottom-Up Bottom-Up Bottom-Up
Current Number of
Holdings 69 53 60 75 418
Emerging Markets
Exposure 7.5%
16.5%
(30.0% Max)
4.2%
(10.0% Max)
8.36%
(15.0% Max)
16.0%
(No Limit)
Annual Turnover (by
Weight) 64.7% 24.9% 23.1% 17.3% 68.0%
Max. Cash Position 5.0% 10.0% 10.0% 10.0% 5.4%
Max. Sector Exposure 25.0% 25.0% 10.0% Relative to
Benchmark No Limit No Limit
Max. Industry Exposure 25.0% 15.0% 10.0% 25.0% No Limit
Max. Position Size 5.0% 5.0% 6.0% 5.0% 6.0%
___________________________________
1 Information obtained from investment managers and eVestment Alliance.
Page 57
Product Investment Summary 1
1The narrative above is self-reported by the manager and obtained through eVestment. It is provided for informational purposes only.
Harding Loevner International Equity Portfolio
Overall Approach Harding Loevner believes the shares of high-quality growth businesses purchased at reasonable prices provide superior risk-
adjusted returns over the long term. Investments must exhibit four key criteria: Competitive Advantage, Quality Management,
Financial Strength, and Sustainable Growth. Analysts qualify, research, and value companies using a consistent process that
includes in-depth research of individual companies and global analysis of industries’ competitive structures. The firm’s proprie tary
“Quality Assessment Framework” provides an analytical framework to ensure process consistency. Share price is considered at the
end of the research process when analysts apply a rating to the company. The Strategy’s Co-Lead PMs build the model portfolio by
selecting only from analyst-rated stocks, adhering to strict diversification limits to control risk. Companies that fail to attain
fundamental mileposts, violate the firm’s key criteria, or are no longer attractively valued are sold.
Lazard International Equity Portfolio
Overall Approach Lazard International Equity seeks to generate strong relative returns over a full market cycle by investing in companies with strong
and/or improving financial productivity at attractive valuations. The strategy typically invests in 60–80 securities of non-US
companies, including those from emerging markets, with a market capitalization generally of $3 billion or greater.
MFS International Equity Fund
Overall Approach The goal of International Equity is to outperform its benchmark index over full market cycles. The Fund’s strategy is to: 1) Build a
portfolio of 60 – 80 stocks that offer above-average growth potential 2) Identify stocks that have a projected earnings growth rate of
at least two to three times that of global GDP growth 3) Focus on stocks trading at a discount to projected long-term growth 4)
Design a portfolio to outperform in a variety of market environments.
Harbor Diversified International All Cap Fund
Overall Approach At the heart of Marathon’s (subadvisor to the Fund) investment philosophy is the "capital cycle" approach to investing. This is based
on the idea that the prospect of high returns will attract excessive capital (and hence competition), and vice versa. The assessments
of how management responds to the forces of the capital cycle through their capital allocation strategy, coupled with how they are
incentivized, are both critical to the investment outcome. The investment philosophy leads to a conceptual framework covering
sector/industry allocation, stock selection and region/country allocation which is the key driver in the sourcing of investment
opportunities and the portfolio construction process. Each aspect of the framework is designed to incorporate leading indicators of
corporate performance and applied in parallel with a long-term investment horizon across the growth and value universes and
capitalization spectrum.
Artisan International Fund
Overall Approach Artisan’s Non-U.S. Growth strategy employs a fundamental stock selection process focused on identifying long-term growth
opportunities to build a portfolio of non-U.S. growth companies of all market capitalizations. The investment team seeks to invest in
companies within its preferred themes with sustainable growth characteristics at attractive valuations that do not fully reflect their
long-term potential.
Page 58
Artisan Harding Loevner Lazard
Strengths - Artisan is an above average firm with strong
alignment of interests between the firm and
portfolio management team.
- The strategy’s portfolio manager is a very
experienced, high-quality investor with a long
track record of success. He is supported by a
well-resourced, experienced, high-quality
team, including two Associate Portfolio
Managers and a large analyst team.
- We view the long limited vesting schedule
for Artisan’s partners/employees positively as
it helps to ensure continuity in the portfolio
management team.
- Strong firm culture, consistently shared investment philosophy, and long-tenured experience of senior members
- Consistent and repeatable process for identifying “quality” companies and for portfolio construction
- Industry analysts conduct both qualitative and quantitative research to determine a quality quotient score, a proprietary system by which Harding Loevner quantifies how closely a company meets its four quality growth criteria
- Co-Lead portfolio manager structure provides accountability and moderate diversification. Additional backup PMs run paper portfolios
- We believe the strategy is managed by a high-quality, experienced portfolio manager
- The International Equity portfolio managers appear to effectively leverage the broader Lazard resources
- Lazard has a history of closing strategies in order to maintain the performance profile
Weaknesses - Artisan does not have a dedicated risk
management team nor does it utilize any
third party risk analytics.
- There is key man risk although we note the
two associate portfolio managers and
supporting analyst team are solid investors
with a thorough understanding of the
philosophy and process.
- Harding Loevner has been growing rapidly in terms of AUM and has been hiring selectively to both bolster its service and deepen its strength on the investment side - Not majority employee owned as Affiliated Managers Group owns 60% of the firm
- There is key man risk although we note the backup portfolio manager appears to be a solid investor
- The dedicated portfolio management team is relatively small
Environment
al Analysis
- The portfolio’s performance relative to the
MSCI EAFE Index has been solid with the
strategy outperforming the benchmark over
long-term periods. Beta has typically hovered
slightly above 1.0.
- Performance can be volatile at times as a
result of the portfolio managers’ macroeconomic and thematic inputs.
- Relative performance versus the MSCI All Country World ex-US Index has been strong over both medium- and long-term trailing periods. Tracking error has tended to be at the lower end of the strategy’s historical range
- Quality growth orientation may offer protection in down markets with participation in up markets
- The strategy’s relative value philosophy, which focuses on companies with high financial productivity, can provide a quality tilt to the portfolio, offering protection in down markets. Conversely, the strategy may underperform in strong rallies, such as occurred in 2009. Beta has typically averaged around 0.95
Key Decision Factors
Page 59
MFS Marathon (Harbor)
Strengths - Co-portfolio managers (“Co-PM”) Marcus Smith and Daniel Ling have close working relationships with the research team (especially in Asia)
- Large, globally located fundamental and quantitative investment research staff from which to draw investment ideas for portfolio construction
- Consistently applied investment philosophy with solid “institutional knowledge” of stocks that meet the general growth/quality criteria
- Performance has been strong for the annualized periods versus the benchmark and its peers
- Attractive mutual fund fees versus peers
-The firm has demonstrated sensible capacity management, and focuses on institutional business. Ownership of the firm extends to all senior investment staff
-Founders Neil Ostrer and Bill Arrah are high-quality, performance-oriented, and experienced investors with a long, successful track record
- Multi-portfolio manager approach should assist in facilitating any transition to second generation investment professionals
- Consistent application of “capital cycle” approach to industry and security evaluation
- Long-term investment horizon and low turnover are consistent with the stated investment philosophy
- Large number of portfolio holdings reduces stock-specific risk
Weaknesses - Marcus Smith, Co-PM, will be retiring from MFS effective 1 April 2017 and Filipe Benzinho, European Research Analyst, will be joining the team as a Co-PM effective 1 May 2016. Daniel Ling will remain as the other Co-PM. We have maintained our Buy rating for the strategy - Portfolio tends to be large cap with relatively limited access to mid and small cap companies
- Founder Jeremy Hosking, who departed in 2012 to start his own firm, continues to have an ownership stake and reduced profit share in the business. We note that the complexities in the Firm structure make this difficult to sell
- The global equity team, led by founder Jeremy Hosking, left in 2012
- The Firm is undergoing legal proceedings against the global team that departed in 2012
- The individuals managing the Asia ex-Japan and emerging market sleeves are relatively newer to Marathon, having joined in 2012
Environmental
Analysis
- Since inception, the strategy has exhibited a performance pattern that indicates substantial participation in most appreciating market environments while providing some downside protection
- The contrarian, value-driven investment process has historically provided substantial downside protection, while offering modest participation in most appreciating markets. We note a mid-small cap bias
Key Decision Factors
Page 60
Artisan Harding Loevner Lazard MFS Harbor MSCI EAFE Index (Net) MSCI AC World ex USA Index (Net)
Characteristics
Wtd. Avg. Mkt. Cap ($K) 59,172,774.15 61,473,330.32 51,215,074.70 59,202,709.91 28,538,186.68 53,714,413.14 51,612,511.78
Median Mkt. Cap ($K) 27,318,136.33 30,594,317.15 20,305,407.74 30,595,506.20 5,916,340.92 8,882,222.27 6,856,043.61
Price/Earnings ratio 17.92 20.50 19.71 21.42 17.28 18.05 16.73
Price/Book ratio 2.35 2.80 2.61 2.66 2.19 2.15 2.17
5 Yr. EPS Growth Rate 10.09 5.31 8.06 8.47 7.16 4.01 5.28
Current Yield 2.42 2.29 2.93 2.53 2.63 3.21 3.03
Debt to Equity 1.25 0.70 1.05 0.79 1.03 2.24 1.86
Forecast P/E 16.56 16.74 15.88 17.78 15.78 15.87 15.02
Forecast EPS Growth - Long-Term 13.11 10.43 9.46 9.48 10.55 9.23 10.12
Gics Sectors (%)
Energy 1.02 7.13 7.94 2.77 4.09 5.47 7.25
Materials 7.17 6.89 5.38 7.06 6.59 7.90 7.97
Industrials 12.09 12.43 17.05 13.83 21.06 14.00 11.66
Consumer Discretionary 7.81 9.14 15.47 15.26 16.56 12.52 11.47
Consumer Staples 16.48 9.77 12.60 18.13 10.85 11.17 9.79
Health Care 6.74 17.49 8.71 15.32 6.19 10.66 8.09
Financials 31.06 16.61 18.57 14.48 18.87 21.17 23.40
Information Technology 8.21 16.73 6.87 11.67 9.34 5.48 9.30
Telecommunication Services 8.03 0.00 3.67 0.45 4.38 4.51 4.65
Utilities 0.00 0.00 0.99 1.03 1.12 3.38 3.16
Real Estate 1.39 0.95 2.76 0.00 0.95 3.74 3.26
Cash 0.00 2.86 0.00 0.00 0.00 0.00 0.00
Market Capitalization (%)
Greater than 25000M 67.85 68.71 56.82 71.48 33.37 59.38 54.64
16000M To 25000M 14.21 9.34 12.21 12.25 11.49 11.37 11.49
12000M To 16000M 7.24 4.95 11.11 8.43 8.28 7.40 7.24
8000M To 12000M 0.00 5.50 6.87 4.71 8.10 8.75 9.67
5000M To 8000M 8.59 4.34 8.61 1.27 13.50 8.15 8.97
3000M To 5000M 2.12 3.42 1.07 1.52 10.61 4.37 5.81
1000M To 3000M 0.00 0.78 2.63 0.33 11.61 0.58 2.17
500M To 1000M 0.00 0.00 0.66 0.00 2.62 0.00 0.01
200M To 500M 0.00 0.00 0.00 0.00 0.34 0.00 0.00
Less than 200M 0.00 0.00 0.00 0.00 0.08 0.00 0.00
Cash 0.00 2.96 0.00 0.00 0.00 0.00 0.00
Portfolio Comparison
As of December 31, 2016
Page 61
Artisan International Inv
(ARTIX)
Harding Loevner:IE;I
(HLMIX)
Lazard:Intl Eqty;Inst (LZIEX)
MFS Instl:Intl Equity
(MIEIX)
Harbor:Dvs Intl AC;Ret
(HNIDX)
MSCI EAFE Index (Net)
MSCI AC World ex USA Index
(Net)Pacific 18.31 20.31 21.65 18.02 31.29 36.19 25.51EMU 40.58 30.68 25.80 36.22 18.48 30.93 21.74Europe ex EMU 14.13 21.54 36.54 30.42 30.74 32.20 22.63Middle East 0.00 1.26 1.91 1.12 0.00 0.68 0.48Canada 4.29 2.21 6.09 4.92 3.75 0.00 7.05United States 15.14 4.59 3.54 2.34 0.06 0.00 0.06Developed Markets 92.46 80.59 95.53 93.05 84.33 100.00 77.46EM Latin America 0.00 2.87 1.16 0.77 3.79 0.00 3.01EM Asia 7.15 8.76 2.66 6.19 9.13 0.00 15.76EM Europe + Middle East + Africa 0.40 4.92 0.65 0.00 2.75 0.00 3.76Emerging Markets 7.54 16.55 4.47 6.95 15.67 0.00 22.54Frontier Markets 0.00 0.00 0.00 0.00 0.00 0.00 0.00Cash 0.00 2.86 0.00 0.00 0.00 0.00 0.00Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Page 62
Performance Analytics
Page 63
Performance(%)
1Quarter
1Year
3Years
5Years
7Years
10Years
Artisan International Inv (ARTIX) 8.98 (47) 2.15 (96) -1.53 (84) 4.96 (54) 5.79 (26) 2.05 (44)MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)
Harding Loevner:IE;I (HLMIX) 9.98 (37) 15.01 (35) 4.17 (17) 6.59 (26) 6.68 (18) 4.34 (10)MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)
Lazard:Intl Eqty;Inst (LZIEX) 5.49 (92) 1.98 (97) -0.71 (76) 5.25 (49) 5.31 (34) 2.21 (42)MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)
MFS Instl:Intl Equity (MIEIX) 8.24 (57) 11.17 (61) 1.66 (41) 5.74 (38) 6.00 (25) 3.30 (25)MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)
Harbor:Dvs Intl AC;Ret (HNIDX) 7.79 (67) 10.55 (66) N/A N/A N/A N/AMSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)
Harbor Diversified Intl All Cap¹ 7.79 (67) 10.55 (66) 1.03 (53) 6.52 (26) 6.47 (20) 3.69 (19)MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)
MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)
MSCI AC World ex USA Index (Net) 7.86 (65) 13.13 (48) 0.56 (60) 4.36 (60) 3.82 (63) 1.35 (60)MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)
Performance(%)
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Artisan International Inv (ARTIX) -9.66 (98) -3.85 (53) -0.97 (27) 25.18 (18) 25.39 (12) -7.26 (10) 5.91 (90) 39.77 (49) -46.96 (57) 19.73 (32) MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)
Harding Loevner:IE;I (HLMIX) 5.30 (37) -1.62 (43) -1.61 (32) 14.02 (58) 20.28 (37) -9.78 (16) 17.49 (37) 40.57 (48) -39.24 (14) 13.01 (55) MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)
Lazard:Intl Eqty;Inst (LZIEX) -4.18 (90) 1.62 (24) -4.29 (51) 20.84 (37) 22.70 (21) -7.17 (9) 8.04 (82) 25.19 (88) -37.75 (10) 10.96 (67) MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)
MFS Instl:Intl Equity (MIEIX) 0.30 (69) 0.02 (32) -4.21 (50) 18.56 (46) 22.55 (22) -9.55 (14) 10.97 (68) 33.12 (68) -34.95 (6) 9.11 (76) MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)
Harbor:Dvs Intl AC;Ret (HNIDX) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)
Harbor Diversified Intl All Cap¹ 0.04 (71) 2.09 (22) -5.71 (65) 24.88 (19) 18.13 (57) -9.41 (14) 16.90 (38) 33.97 (65) -40.24 (17) 16.96 (39) MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)
MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65) MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)
MSCI AC World ex USA Index (Net) 4.50 (41) -5.66 (59) -3.87 (46) 15.29 (55) 16.83 (70) -13.71 (42) 11.15 (67) 41.45 (47) -45.53 (48) 16.65 (39) MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)
Trailing & Calendar Year Performance
As of March 31, 2017
¹Alternative share class shown for longer performance history.
Page 64
-20.0
-12.0
-4.0
4.0
12.0
20.0
28.0
36.0
Re
turn
1Quarter
1Year
3Years
5Years
7Years
10Years
Artisan International Inv (ARTIX) 8.98 (47) 2.15 (96) -1.53 (84) 4.96 (54) 5.79 (26) 2.05 (44)¢
Harding Loevner:IE;I (HLMIX) 9.98 (37) 15.01 (35) 4.17 (17) 6.59 (26) 6.68 (18) 4.34 (10)�
Lazard:Intl Eqty;Inst (LZIEX) 5.49 (92) 1.98 (97) -0.71 (76) 5.25 (49) 5.31 (34) 2.21 (42)p
MFS Instl:Intl Equity (MIEIX) 8.24 (57) 11.17 (61) 1.66 (41) 5.74 (38) 6.00 (25) 3.30 (25)¿
Harbor Diversified Intl All Cap¹ 7.79 (67) 10.55 (66) 1.03 (53) 6.52 (26) 6.47 (20) 3.69 (19)q
MSCI EAFE Index (Net) 7.25 (78) 11.67 (59) 0.50 (61) 5.83 (37) 4.72 (44) 1.05 (68)�
MSCI AC World ex USA Index (Net) 7.86 (65) 13.13 (48) 0.56 (60) 4.36 (60) 3.82 (63) 1.35 (60)p
5th Percentile 15.00 24.69 7.42 10.61 9.15 5.47
1st Quartile 11.45 17.43 2.90 6.60 5.89 3.26
Median 8.63 12.79 1.13 5.15 4.35 1.76
3rd Quartile 7.37 9.05 -0.63 2.51 2.76 0.80
95th Percentile 4.42 2.86 -4.58 -3.46 -1.91 -1.28
¹Alternative share class shown for longer performance history.
Peer Group Analysis
As of March 31, 2017
IM International Equity (MF)
Parentheses contain percentile rankings.
Page 65
-100.0
-50.0
0.0
50.0
100.0
150.0
-150.0
Re
turn
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Artisan International Inv (ARTIX) -9.66 (98) -3.85 (53) -0.97 (27) 25.18 (18) 25.39 (12) -7.26 (10) 5.91 (90) 39.77 (49) -46.96 (57) 19.73 (32)¢
Harding Loevner:IE;I (HLMIX) 5.30 (37) -1.62 (43) -1.61 (32) 14.02 (58) 20.28 (37) -9.78 (16) 17.49 (37) 40.57 (48) -39.24 (14) 13.01 (55)�
Lazard:Intl Eqty;Inst (LZIEX) -4.18 (90) 1.62 (24) -4.29 (51) 20.84 (37) 22.70 (21) -7.17 (9) 8.04 (82) 25.19 (88) -37.75 (10) 10.96 (67)p
MFS Instl:Intl Equity (MIEIX) 0.30 (69) 0.02 (32) -4.21 (50) 18.56 (46) 22.55 (22) -9.55 (14) 10.97 (68) 33.12 (68) -34.95 (6) 9.11 (76)¿
Harbor Diversified Intl All Cap¹ 0.04 (71) 2.09 (22) -5.71 (65) 24.88 (19) 18.13 (57) -9.41 (14) 16.90 (38) 33.97 (65) -40.24 (17) 16.96 (39)q
MSCI EAFE Index (Net) 1.00 (64) -0.81 (38) -4.90 (59) 22.78 (25) 17.32 (66) -12.14 (30) 7.75 (83) 31.78 (70) -43.38 (35) 11.17 (65)�
MSCI AC World ex USA Index (Net) 4.50 (41) -5.66 (59) -3.87 (46) 15.29 (55) 16.83 (70) -13.71 (42) 11.15 (67) 41.45 (47) -45.53 (48) 16.65 (39)p
5th Percentile 19.65 9.89 8.67 32.28 29.22 -4.26 27.96 92.94 -33.31 48.70
1st Quartile 8.28 1.37 -0.58 22.71 21.97 -11.59 20.18 65.38 -42.19 26.09
Median 2.78 -3.23 -4.23 16.86 18.81 -14.87 14.38 39.60 -45.92 13.67
3rd Quartile -0.78 -11.96 -6.62 1.59 15.92 -18.77 9.75 30.09 -51.05 9.12
95th Percentile -6.55 -21.50 -12.78 -9.54 7.89 -27.75 3.11 19.28 -59.42 -1.11
¹Alternative share class shown for longer performance history.
Peer Group Analysis
As of March 31, 2017
IM International Equity (MF)
Parentheses contain percentile rankings.
Page 66
5 Years Statistics
10 Years Statistics
ActualCorrelation
BetaInformation
RatioR-Squared Return
SharpeRatio
SimpleAlpha
StandardDeviation
TrackingError
Artisan International Inv (ARTIX) 0.92 0.86 -0.18 0.84 4.96 0.44 -0.87 12.44 5.25
Harding Loevner:IE;I (HLMIX) 0.92 0.89 0.13 0.85 6.59 0.56 0.76 12.75 5.19
Lazard:Intl Eqty;Inst (LZIEX) 0.96 0.89 -0.18 0.92 5.25 0.47 -0.58 12.26 3.68
MFS Instl:Intl Equity (MIEIX) 0.97 0.91 -0.06 0.94 5.74 0.51 -0.09 12.33 3.19
Harbor Diversified Intl All Cap¹ 0.98 0.86 0.16 0.96 6.52 0.59 0.69 11.64 2.85
MSCI EAFE Index (Net) 1.00 1.00 N/A 1.00 5.83 0.49 0.00 13.21 0.00
Citigroup 3 Month T-Bill 0.12 0.00 -0.49 0.01 0.12 N/A -5.71 0.04 13.21
ActualCorrelation
BetaInformation
RatioR-Squared Return
SharpeRatio
SimpleAlpha
StandardDeviation
TrackingError
Artisan International Inv (ARTIX) 0.96 1.02 0.21 0.91 2.05 0.17 1.00 19.86 5.88
Harding Loevner:IE;I (HLMIX) 0.95 0.94 0.56 0.91 4.34 0.29 3.29 18.36 5.68
Lazard:Intl Eqty;Inst (LZIEX) 0.97 0.91 0.21 0.95 2.21 0.18 1.15 17.38 4.22
MFS Instl:Intl Equity (MIEIX) 0.97 0.94 0.48 0.95 3.30 0.24 2.25 17.95 4.29
Harbor Diversified Intl All Cap¹ 0.99 0.90 0.71 0.98 3.69 0.26 2.64 17.03 3.21
MSCI EAFE Index (Net) 1.00 1.00 N/A 1.00 1.05 0.12 0.00 18.64 0.00
Citigroup 3 Month T-Bill -0.08 0.00 -0.12 0.01 0.61 N/A -0.44 0.37 18.68
Historical Statistics
As of March 31, 2017
Page 67
3.2
3.6
4.0
4.4
4.8
5.2
5.6
6.0
6.4
6.8
7.2
7.6
Re
turn
(%)
10.8 11.1 11.4 11.7 12.0 12.3 12.6 12.9 13.2 13.5 13.8 14.1
Risk (Standard Deviation %)
MSCI AC World ex USA Index (Net)
Harbor Diversified Intl All Cap¹
MSCI AC World ex USA Index (Net)
MFS Instl:Intl Equity (MIEIX)
Lazard:Intl Eqty;Inst (LZIEX)
MSCI AC World ex USA Index (Net)
Harding Loevner:IE;I (HLMIX)
MSCI EAFE Index (Net)
Artisan International Inv (ARTIX)
¹Alternative share class shown for longer performance history.
Risk and Return
5 Years Ending March 31, 2017
Calculation based on monthly periodicity.
Page 68
-0.6
0.0
0.6
1.2
1.8
2.4
3.0
3.6
4.2
4.8
5.4
6.0
Re
turn
(%)
15.5 16.0 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 20.5 21.0 21.5
Risk (Standard Deviation %)
MSCI AC World ex USA Index (Net)
Harbor Diversified Intl All Cap¹
MSCI AC World ex USA Index (Net)
MFS Instl:Intl Equity (MIEIX)
Lazard:Intl Eqty;Inst (LZIEX)
MSCI AC World ex USA Index (Net)
Harding Loevner:IE;I (HLMIX)
MSCI EAFE Index (Net)
Artisan International Inv (ARTIX)
¹Alternative share class shown for longer performance history.
Risk and Return
10 Years Ending March 31, 2017
Calculation based on monthly periodicity.
Page 69
Standard Deviation
Artisan International Inv (ARTIX) MSCI EAFE Index (Net) Harding Loevner:IE;I (HLMIX)
MSCI AC World ex USA Index (Net) Lazard:Intl Eqty;Inst (LZIEX) MFS Instl:Intl Equity (MIEIX)
Harbor Diversified Intl All Cap¹
3.0
6.0
9.0
12.0
15.0
18.0
21.0
24.0
27.0
30.0
33.0
6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17
¹Alternative share class shown for longer performance history.
Rolling Standard Deviation Chart
60 Months Rolling Periods As of March 31, 2017
Page 70
Up Market Capture
Artisan International Inv (ARTIX) Harding Loevner:IE;I (HLMIX) Lazard:Intl Eqty;Inst (LZIEX)
MFS Instl:Intl Equity (MIEIX) Harbor Diversified Intl All Cap¹
0.0
50.0
100.0
150.0
Up
Ma
rke
t
Ca
ptu
re R
ati
o (%
)
5Years
10Years
Time Periods
89.0 92.893.199.2
89.5 93.290.397.5
87.6
102.9
Down Market Capture
Artisan International Inv (ARTIX) Harding Loevner:IE;I (HLMIX) Lazard:Intl Eqty;Inst (LZIEX)
MFS Instl:Intl Equity (MIEIX) Harbor Diversified Intl All Cap¹
0.0
50.0
100.0
150.0
Do
wn
Ma
rke
t
Ca
ptu
re R
ati
o (%
)
5Years
10Years
Time Periods
81.2 82.091.3 90.189.4 88.6
81.6 83.588.497.9
¹Alternative share class shown for longer performance history.
Market Capture Ratio
As of March 31, 2017
Versus MSCI EAFE Index (Net)
Page 71
Up Market Capture
Artisan International Inv (ARTIX) Harding Loevner:IE;I (HLMIX) Lazard:Intl Eqty;Inst (LZIEX)
MFS Instl:Intl Equity (MIEIX) Harbor Diversified Intl All Cap¹
0.0
50.0
100.0
150.0
Up
Ma
rke
t
Ca
ptu
re R
ati
o (%
)
5Years
10Years
Time Periods
93.8 90.496.6 96.293.4 90.4
98.8 96.992.4100.0
Down Market Capture
Artisan International Inv (ARTIX) Harding Loevner:IE;I (HLMIX) Lazard:Intl Eqty;Inst (LZIEX)
MFS Instl:Intl Equity (MIEIX) Harbor Diversified Intl All Cap¹
0.0
50.0
100.0
150.0
Do
wn
Ma
rke
t
Ca
ptu
re R
ati
o (%
)
5Years
10Years
Time Periods
79.0 80.987.0 88.586.0 87.084.3 84.686.3
96.5
¹Alternative share class shown for longer performance history.
Market Capture Ratio
As of March 31, 2017
Versus MSCI AC World ex USA Index (Net)
Page 72
Appendix
Page 73
Return Summary
Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years
Account Information
As of March 31, 2017
Artisan International Inv (ARTIX) Performance Summary
Artisan International Inv (ARTIX)
Artisan International Inv (ARTIX)
MSCI EAFE Index (Net)
0.0
6.0
12.0
18.0
-6.0
-12.0
Re
turn
1Quarter
YearTo
Date
1Year
3Years
5Years
7Years
10Years
7.2 7.2
11.7
0.5
5.84.7
1.1
9.0 9.0
2.2
-1.5
5.05.8
2.0
Product Name : Artisan:Internatl;Inv (ARTIX)
Fund Family : Artisan Partners LP
Ticker : ARTIX
Peer Group : IM International Large Cap Equity (MF)
Benchmark : MSCI EAFE Index (Net)
Fund Inception : 12/28/1995
Portfolio Manager : Yockey/Euretig/Hamker
Total Assets : $5,860.70 Million
Total Assets Date : 02/28/2017
Gross Expense : 1.19%
Net Expense : 1.19%
Turnover : 65%
Quarterly Out Performance Quarterly Under Performance
0.0%
6.0%
12.0%
-6.0 %
-12.0 %
-18.0 %
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17 Artisan International Inv (ARTIX)
Benchmark
0.84
0.91
0.98
1.05
1.12
1.19
3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17
0.96
Page 74
5 Years Historical Statistics
Rolling 5 Years Standard DeviationAnnualized Return vs. Annualized Standard Deviation
5 Years
5 Years Ending March 31, 2017
Artisan International Inv (ARTIX) Risk Profile
Artisan International Inv (ARTIX)
Artisan International Inv (ARTIX)
MSCI EAFE Index (Net)
0.0
6.0
12.0
18.0
24.0
30.0
36.0
12/00 6/02 12/03 6/05 12/06 6/08 12/09 6/11 12/12 6/14 3/17Artisan International Inv (ARTIX)
MSCI EAFE Index (Net)
Citigroup 3 Month T-Bill
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Re
turn
(%)
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0Risk (Standard Deviation %)
ActiveReturn
TrackingError
InformationRatio
R-SquaredSharpeRatio
Alpha Beta ReturnStandardDeviation
ActualCorrelation
Artisan International Inv (ARTIX) -0.92 5.25 -0.18 0.84 0.44 -0.03 0.86 4.96 12.44 0.92
MSCI EAFE Index (Net) 0.00 0.00 N/A 1.00 0.49 0.00 1.00 5.83 13.21 1.00
Citigroup 3 Month T-Bill -6.43 13.21 -0.49 0.01 N/A 0.12 0.00 0.12 0.04 0.12
Page 75
Return Summary
Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years
Account Information
As of March 31, 2017
Harding Loevner:IE;I (HLMIX) Performance Summary
Harding Loevner:IE;I (HLMIX)
Harding Loevner:IE;I (HLMIX)
MSCI AC World ex USA Index (Net)
0.0
6.0
12.0
18.0
24.0
Re
turn
1Quarter
YearTo
Date
1Year
3Years
5Years
7Years
10Years
7.9 7.9
13.1
0.6
4.4 3.8
1.4
10.0 10.0
15.0
4.2
6.6 6.7
4.3
Product Name : Harding Loevner:IE;I (HLMIX)
Fund Family : Harding Loevner LP
Ticker : HLMIX
Peer Group : IM International Large Cap Growth Equity (MF)
Benchmark : MSCI AC World ex USA Index (Net)
Fund Inception : 05/11/1994
Portfolio Manager : Team Managed
Total Assets : $7,798.10 Million
Total Assets Date : 03/31/2017
Gross Expense : 0.84%
Net Expense : 0.84%
Turnover : 22%
Quarterly Out Performance Quarterly Under Performance
0.0%
4.0%
8.0%
-4.0 %
-8.0 %
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17
Harding Loevner:IE;I (HLMIX) Benchmark
0.91
0.98
1.05
1.12
1.19
3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17
1.11
Page 76
5 Years Historical Statistics
Rolling 5 Years Standard DeviationAnnualized Return vs. Annualized Standard Deviation
5 Years
5 Years Ending March 31, 2017
Harding Loevner:IE;I (HLMIX) Risk Profile
Harding Loevner:IE;I (HLMIX)
Harding Loevner:IE;I (HLMIX)
MSCI AC World ex USA Index (Net)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
5/99 2/01 11/02 8/04 5/06 2/08 11/09 8/11 5/13 2/15 3/17Harding Loevner:IE;I (HLMIX)
MSCI AC World ex USA Index (Net)
Citigroup 3 Month T-Bill
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Re
turn
(%)
0.0 3.0 6.0 9.0 12.0 15.0 18.0Risk (Standard Deviation %)
ActiveReturn
TrackingError
InformationRatio
R-SquaredSharpeRatio
Alpha Beta ReturnStandardDeviation
ActualCorrelation
Harding Loevner:IE;I (HLMIX) 2.10 3.98 0.53 0.91 0.56 2.44 0.94 6.59 12.75 0.95
MSCI AC World ex USA Index (Net) 0.00 0.00 N/A 1.00 0.39 0.00 1.00 4.36 12.93 1.00
Citigroup 3 Month T-Bill -4.98 12.92 -0.39 0.03 N/A 0.11 0.00 0.12 0.04 0.16
Page 77
Return Summary
Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years
Account Information
As of March 31, 2017
Lazard:Intl Eqty;Inst (LZIEX) Performance Summary
Lazard:Intl Eqty;Inst (LZIEX)
Lazard:Intl Eqty;Inst (LZIEX) MSCI EAFE Index (Net)
0.0
6.0
12.0
18.0
-6.0
Re
turn
1Quarter
YearTo
Date
1Year
3Years
5Years
7Years
10Years
7.2 7.2
11.7
0.5
5.84.7
1.1
5.5 5.5
2.0
-0.7
5.2 5.3
2.2
Product Name : Lazard:Intl Eqty;Inst (LZIEX)
Fund Family : Lazard Asset Management LLC
Ticker : LZIEX
Peer Group : IM International Multi-Cap Core Equity (MF)
Benchmark : MSCI EAFE Index (Net)
Fund Inception : 10/01/1991
Portfolio Manager : John R. Reinsberg
Total Assets : $1,597.00 Million
Total Assets Date : 02/28/2017
Gross Expense : 0.87%
Net Expense : 0.85%
Turnover : 30%
Quarterly Out Performance Quarterly Under Performance
0.0%
3.0%
6.0%
-3.0 %
-6.0 %
-9.0 %
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17
Lazard:Intl Eqty;Inst (LZIEX) Benchmark
0.90
0.95
1.00
1.05
1.10
1.15
3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17
0.97
Page 78
5 Years Historical Statistics
Rolling 5 Years Standard DeviationAnnualized Return vs. Annualized Standard Deviation
5 Years
5 Years Ending March 31, 2017
Lazard:Intl Eqty;Inst (LZIEX) Risk Profile
Lazard:Intl Eqty;Inst (LZIEX)
Lazard:Intl Eqty;Inst (LZIEX) MSCI EAFE Index (Net)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
10/96 10/98 10/00 10/02 10/04 10/06 10/08 10/10 10/12 10/14 3/17Lazard:Intl Eqty;Inst (LZIEX) MSCI EAFE Index (Net)
Citigroup 3 Month T-Bill
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Re
turn
(%)
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0Risk (Standard Deviation %)
ActiveReturn
TrackingError
InformationRatio
R-SquaredSharpeRatio
Alpha Beta ReturnStandardDeviation
ActualCorrelation
Lazard:Intl Eqty;Inst (LZIEX) -0.68 3.68 -0.18 0.92 0.47 0.03 0.89 5.25 12.26 0.96
MSCI EAFE Index (Net) 0.00 0.00 N/A 1.00 0.49 0.00 1.00 5.83 13.21 1.00
Citigroup 3 Month T-Bill -6.43 13.21 -0.49 0.01 N/A 0.12 0.00 0.12 0.04 0.12
Page 79
Return Summary
Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years
Account Information
As of March 31, 2017
MFS Instl:Intl Equity (MIEIX) Performance Summary
MFS Instl:Intl Equity (MIEIX)
MFS Instl:Intl Equity (MIEIX)
MSCI AC World ex USA Index (Net)
0.0
5.0
10.0
15.0
20.0
Re
turn
1Quarter
YearTo
Date
1Year
3Years
5Years
7Years
10Years
7.9 7.9
13.1
0.6
4.4 3.8
1.4
8.2 8.2
11.2
1.7
5.7 6.0
3.3
Product Name : MFS Instl:Intl Equity (MIEIX)
Fund Family : MFS Investment Management
Ticker : MIEIX
Peer Group : IM International Large Cap Growth Equity (MF)
Benchmark : MSCI AC World ex USA Index (Net)
Fund Inception : 01/31/1996
Portfolio Manager : Ling/Benzinho
Total Assets : $8,405.90 Million
Total Assets Date : 03/31/2017
Gross Expense : 0.71%
Net Expense : 0.71%
Turnover : 12%
Quarterly Out Performance Quarterly Under Performance
0.0%
3.0%
6.0%
-3.0 %
-6.0 %
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17
MFS Instl:Intl Equity (MIEIX) Benchmark
0.96
1.02
1.08
1.14
1.20
3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17
1.07
Page 80
5 Years Historical Statistics
Rolling 5 Years Standard DeviationAnnualized Return vs. Annualized Standard Deviation
5 Years
5 Years Ending March 31, 2017
MFS Instl:Intl Equity (MIEIX) Risk Profile
MFS Instl:Intl Equity (MIEIX)
MFS Instl:Intl Equity (MIEIX)
MSCI AC World ex USA Index (Net)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
1/01 7/02 1/04 7/05 1/07 7/08 1/10 7/11 1/13 7/14 3/17MFS Instl:Intl Equity (MIEIX)
MSCI AC World ex USA Index (Net)
Citigroup 3 Month T-Bill
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Re
turn
(%)
0.0 3.0 6.0 9.0 12.0 15.0 18.0Risk (Standard Deviation %)
ActiveReturn
TrackingError
InformationRatio
R-SquaredSharpeRatio
Alpha Beta ReturnStandardDeviation
ActualCorrelation
MFS Instl:Intl Equity (MIEIX) 1.25 3.50 0.36 0.93 0.51 1.68 0.92 5.74 12.33 0.96
MSCI AC World ex USA Index (Net) 0.00 0.00 N/A 1.00 0.39 0.00 1.00 4.36 12.93 1.00
Citigroup 3 Month T-Bill -4.98 12.92 -0.39 0.03 N/A 0.11 0.00 0.12 0.04 0.16
Page 81
Return Summary
Quarterly Excess Performance Ratio of Cumulative Wealth - 5 Years
Account Information
As of March 31, 2017
Harbor Diversified Intl All Cap¹ Performance Summary
Harbor Diversified Intl All Cap¹
Harbor Diversified Intl All Cap¹
MSCI AC World ex USA Index (Net)
0.0
5.0
10.0
15.0
20.0
Re
turn
1Quarter
YearTo
Date
1Year
3Years
5Years
7Years
10Years
7.9 7.9
13.1
0.6
4.4 3.8
1.4
7.8 7.8
10.5
1.0
6.5 6.5
3.7
Product Name : Harbor:Dvs Intl AC;Ret (HNIDX)
Fund Family : Harbor Capital Advisors Inc
Ticker : HNIDX
Peer Group : IM International Multi-Cap Growth Equity (MF)
Benchmark : MSCI AC World ex USA Index (Net)
Fund Inception : 03/01/2016
Portfolio Manager : Team Managed
Total Assets : $4.10 Million
Total Assets Date : 03/31/2017
Gross Expense : 1.52%
Net Expense : 0.80%
Turnover : 68%
Quarterly Out Performance Quarterly Under Performance
0.0%
3.0%
6.0%
9.0%
-3.0 %
-6.0 %
6/12 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 3/17
Harbor Diversified Intl All Cap¹ Benchmark
0.90
0.99
1.08
1.17
1.26
3/12 9/12 3/13 9/13 3/14 9/14 3/15 9/15 3/16 9/16 3/17
1.11
¹Alternative share class shown for longer performance history.
Page 82
5 Years Historical Statistics
Rolling 5 Years Standard DeviationAnnualized Return vs. Annualized Standard Deviation
5 Years
5 Years Ending March 31, 2017
Harbor Diversified Intl All Cap¹ Risk Profile
Harbor Diversified Intl All Cap¹
Harbor Diversified Intl All Cap¹
MSCI AC World ex USA Index (Net)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
6/99 3/01 12/02 9/04 6/06 3/08 12/09 9/11 6/13 3/15 3/17Harbor Diversified Intl All Cap¹
MSCI AC World ex USA Index (Net)
Citigroup 3 Month T-Bill
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Re
turn
(%)
0.0 3.0 6.0 9.0 12.0 15.0 18.0Risk (Standard Deviation %)
ActiveReturn
TrackingError
InformationRatio
R-SquaredSharpeRatio
Alpha Beta ReturnStandardDeviation
ActualCorrelation
Harbor Diversified Intl All Cap¹ 1.90 3.09 0.61 0.95 0.59 2.56 0.88 6.52 11.64 0.97
MSCI AC World ex USA Index (Net) 0.00 0.00 N/A 1.00 0.39 0.00 1.00 4.36 12.93 1.00
Citigroup 3 Month T-Bill -4.98 12.92 -0.39 0.03 N/A 0.11 0.00 0.12 0.04 0.16
¹Alternative share class shown for longer performance history.
Page 83
The information contained herein is confidential and proprietary and provided for informational purposes only. It is not complete and does not contain certainmaterial information about making investments in securities including important disclosures and risk factors. All securities transactions involve substantial risk ofloss. Under no circumstances does the information in this report represent a recommendation to buy or sell stocks, limited partnership interests, or otherinvestment instruments.
The data contained in these reports is compiled from statements provided by the custodian(s), record-keeper(s), and/or other third-party data provider(s). Thisdocument is not intended to provide, and shall not be relied upon for, accounting and legal or tax advice. AHIC has not conducted additional audits and cannotwarrant its accuracy or completeness.
We urge you to compare this statement with that of your qualified custodian and/or record-keeper and notify AHIC with any issues or questions you may havewith respect to investment performance or any other matter set forth herein.
The mutual fund information found in this report is provided by Thomson Reuters Lipper and AHIC cannot warrant its accuracy or timeliness. Thomson ReutersLipper Global Data Feed provides comprehensive coverage of mutual fund information directly to Investment Metrics, AHIC’s performance reporting vendor, viathe PARis performance reporting platform. Thomson Reuters Lipper is the data provider chosen by Investment Metrics, and as such, AHIC has no directrelationship with Thomson Reuters Lipper.
Refer to Hedge Fund Research, Inc. www.hedgefundresearch.com for information on HFR indices.
FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” and “FTSE4Good®” are trademarks of the London Stock Exchange Group companies and are usedby FTSE International Limited under license. The FTSE indices are calculated by FTSE International Limited in conjunction with Indonesia Stock Exchange,Bursa Malaysia Berhad, The Philippine Stock Exchange, Inc., Singapore Exchange Securities Trading Limited and the Stock Exchange of Thailand (the"Exchanges'). All intellectual property rights in the FTSE/ASEAN Index vest in FTSE and the Exchanges. Neither FTSE nor its licensors accept any liability forany errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s expresswritten consent.
Past performance is not necessarily indicative of future results.
Aon Hewitt Investment Consulting, Inc. (“AHIC”) is a federally registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”). AHIC isalso registered with the Commodity Futures Trade Commission as a commodity pool operator and a commodity trading advisor, and is a member of the NationalFutures Association. The AHIC ADV Form Part 2A disclosure statement is available upon written request to:
Aon Hewitt Investment Consulting, Inc.200 East Randolph StreetSuite 1500Chicago, IL 60601ATTN: AHIC Compliance Officer
Disclaimers
Page 84