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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

[email protected]

Matthew C. Stone Consultant



Norwalk, CT 06850

t +1 (203) 523-8929

f +1 (203) 523-6750

[email protected]

Robert Leal Investment Analyst



Norwalk, CT 06850

t +1 (203) 523-6775

f +1 (203) 523-6750

[email protected]

mailto:[email protected]



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

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100

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160

170

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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


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


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 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¢£


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


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 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 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 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 2035 2,320.33 1.20 6.57 (4) 14.21 (19) 6.31 (9) 9.60 (3) 9.73 (2) 6.02 (-)



Asset Allocation & Performance

As of March 31, 2017

Page 17


Asset Allocation & Performance


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 2045 643.68 0.33 7.04 (3) 15.12 (27) 6.54 (9) 9.92 (4) 9.96 (3) 6.20 (-)


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 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)


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)


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 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)




Calendar Year Performance


Returns for periods greater than one year are annualized.Returns are expressed as percentages.

Page 19


Calendar Year Performance


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 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 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

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turn

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0Annualized Standard Deviation


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


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 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











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

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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)


PIMCO Inflation Response MultiAsst Inst PIMCO IRMA Benchmark

0.0

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>=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


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%


Page 32




TRP Retirement 2005 TRP Retirement 2005 Index

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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


>=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


0.0

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TRP Retirement 2005 03/31/17

Page 33





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Page 37





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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






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


Page 39





0.0

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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






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


Page 40





0.0

25.0

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100.0

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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






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


Page 41





0.0

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100.0

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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






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


Page 42




BlackRock S&P 500 Stock S&P 500 Index

0.0

25.0

50.0

75.0

100.0

Re

turn

Pe

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nti

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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


>=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


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


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




Dodge & Cox Stock S&P 500 Index

0.0

25.0

50.0

75.0

100.0

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turn

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nti

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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


>=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


Cap

ital

izat

ion

Manager Style

Large Cap Growth


Large Cap Value



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




Vanguard Mid Cap Index Vanguard Spliced Mid Cap Index

0.0

25.0

50.0

75.0

100.0

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turn

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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


>=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


Cap

ital

izat

ion

Manager Style

Large Cap Growth


Large Cap Value



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




Baron Growth Rtl Russell Midcap Growth Index

0.0

25.0

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75.0

100.0

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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


>=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


Cap

ital

izat

ion

Manager Style

Large Cap Growth


Large Cap Value



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





MSCI EAFE Index (Net)

MSCI AC World ex USA Index (Net)

0.0

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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


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


>=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


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 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%


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


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


Page 61


(ARTIX)

Harding Loevner:IE;I

(HLMIX)

Lazard:Intl Eqty;Inst (LZIEX)

MFS Instl:Intl Equity

(MIEIX)

Harbor:Dvs Intl AC;Ret

(HNIDX)


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


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


Peer Group Analysis


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


Peer Group Analysis


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


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 %)


Harbor Diversified Intl All Cap¹


MFS Instl:Intl Equity (MIEIX)



Harding Loevner:IE;I (HLMIX)


Artisan International Inv (ARTIX)


Risk and Return


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 %)











Risk and Return


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)


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


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



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


Market Capture Ratio


Versus MSCI EAFE Index (Net)

Page 71

Up Market Capture



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



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


Market Capture Ratio


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


Artisan International Inv (ARTIX) Performance Summary




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


Artisan International Inv (ARTIX) Risk Profile




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)


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


Account Information


Harding Loevner:IE;I (HLMIX) Performance Summary




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)


Portfolio Manager : Team Managed




Net Expense : 0.84%

Turnover : 22%


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


Harding Loevner:IE;I (HLMIX) Risk Profile




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)



-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



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


Page 77

Return Summary


Account Information


Lazard:Intl Eqty;Inst (LZIEX) Performance Summary


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)


Portfolio Manager : John R. Reinsberg




Net Expense : 0.85%

Turnover : 30%


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


Lazard:Intl Eqty;Inst (LZIEX) Risk Profile


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)


-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



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


Page 79

Return Summary


Account Information


MFS Instl:Intl Equity (MIEIX) Performance Summary




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)



Portfolio Manager : Ling/Benzinho




Net Expense : 0.71%

Turnover : 12%


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


MFS Instl:Intl Equity (MIEIX) Risk Profile




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)



-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Re

turn

(%)


ActiveReturn

TrackingError

InformationRatio



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



Page 81

Return Summary


Account Information


Harbor Diversified Intl All Cap¹ Performance Summary




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)



Portfolio Manager : Team Managed

Total Assets : $4.10 Million



Net Expense : 0.80%

Turnover : 68%


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


Page 82



5 Years


Harbor Diversified Intl All Cap¹ Risk Profile




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



-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

Re

turn

(%)


ActiveReturn

TrackingError

InformationRatio



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




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.

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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.

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Disclaimers

Page 84

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