AGENDA Investment Committee Meeting El Camino · PDF fileb. First Quarter Performance Review...

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AGENDA Investment Committee Meeting

El Camino Hospital Board

Monday, May 11, 2015, 5:30 p.m.

Conference Room A, Ground Floor

2500 Grant Road

Mountain View, California

MISSION: The purpose of the Investment Committee is to develop and recommend to the El Camino Hospital Board of Directors the organization's investment policies, maintain current knowledge of the management and investment of the invested funds of the hospital and its pension plan(s), provide guidance to management in its investment management role, and provide oversight of the allocation of the investment assets.

AGENDA ITEM PRESENTED BY

1. CALL TO ORDER/ROLL CALL John Zoglin, Chair 5:30 – 5:31

2. POTENTIAL CONFLICT OF INTEREST

DISCLOSURES

John Zoglin, Chair 5:31 – 5:32

3. PUBLIC COMMUNICATION John Zoglin, Chair 5:32 – 5:33

4. CONSENT CALENDAR:

Any committee member may remove an item for

discussion before a motion is made.

John Zoglin, Chair public

comment

Motion

5:33 – 5:35

Approval:

a. Minutes of Investment Committee Meeting

(February 9, 2015)

b. Minutes of Joint Meeting of the Finance

Committee and Investment Committee

(January 26, 2015)

Information: c. Article of Interest

ATTACHMENT 4

5. REPORT ON BOARD ACTIONS John Zoglin, Chair Information

5:35 – 5:40

6. INVESTMENT COMMITTEE SCORECARD

and PERFORMANCE REVIEW

a. Investment Committee Scorecard

b. First Quarter Performance Review

c. Surplus Cash Hedge Fund Portfolio

ATTACHMENT 6

Antonio DiCosola and

Alex Da Costa, Pavilion

Advisory Group

public

comment

Motion(s) for

recommendation

required 5:40 – 6:25

7. ECH SERIES 2015A BOND ISSUANCE Iftikhar Hussain, Chief

Financial Officer

Information

6:25 – 6:40

El Camino Hospital Board Investment Committee May 11, 2015

AGENDA ITEM PRESENTED BY

8. COMMITTEE GOALS a. 2015 Goals b. 2016 Goals ATTACHMENT 8

John Zoglin, Chair Discussion 6:40 – 6:50

9. ADJOURN TO CLOSED SESSION 6:50 10. CONSENT CALENDAR: Any committee member may remove an item for discussion before a motion is made. Approval: Meeting Minutes of the Closed Session of the

Investment Committee (February 9, 2015) Gov’t. Code Section 54957.2

John Zoglin, Chair

Motion

6:50 – 6:51

11. Report involving Gov’t Code Section 54957 and 54957.6 for discussion and report on personnel matters. - Recruiting New Committee Member

John Zoglin, Chair

Discussion 6:51 – 7:05

12. RECONVENE OPEN SESSION

7:05

To report any required disclosures regarding permissible actions taken during Closed Session.

John Zoglin, Chair

13. RECRUITING NEW COMMITTEE MEMBER

John Zoglin, Chair

Possible Motion for Recommendation

7:06 – 7:07

14. ADJOURNMENT

John Zoglin, Chair 7:07 p.m.

FY 2016 Investment Committee Meetings (tentative based on Board approval in June 2015) August 10, 2015 November 9, 2015 February 8, 2016 May 9, 2016

Att 4a - Draft 2-9-15 IC OPEN MINUTES (3).docx

Separator Page

Minutes of the Open Session Meeting

Investment Committee of the Board of Directors

Of El Camino Hospital

Monday, February 9, 2015

El Camino Hospital, 2500 Grant Road, Mountain View, California

Conference Room A

1. Call to Order. The Open Session meeting of the Investment Committee Meeting

of El Camino Hospital (the “Committee”) was called to order by Committee Chair John Zoglin

at 5:30 p.m. on Monday, February 9, 2015 in Conference Room A at El Camino Hospital, 2500

Grant Road, Mountain View, California.

2. Roll Call. Committee members present were John Zoglin, Nicki Boone, Jeffrey

Davis, MD, and Brooks Nelson. Chair Zoglin announced that Ethan Cohen-Cole had resigned

from the Investment Committee.

3. Potential Conflict of Interests Disclosures. Committee Chair Zoglin asked if

any committee member or anyone in the audience believes that a committee member may have a

conflict of interest on any of the items on the agenda. No conflict of interest was reported.

4. Consent Calendar. The committee reviewed the item on the Consent Calendar.

Motion: To approve Consent Calendar, November 10, 2015 Open Session minutes.

Movant: Davis

Second: Nelson

Ayes: Boone, Davis, Nelson and Zoglin

Noes: None

Abstentions: None

Absent: None

Recused: None

5. Agenda Item 5 – Report on Board Actions. Chair Zoglin reported the Board

held a retreat on February 7, 2015 and continued discussions on strategy regarding the

Affordable Care Act. He stated that Board discussions are also focused on reducing the number

of goals the Board is focused on.

6. Agenda Item 6 – Investment Committee Scorecard and Performance Review.

Tom Dodd, Pavilion Advisory Group gave an overview of the market environment both

domestic and abroad. He cited a favorable market environment for U.S. equities given

improvement in the labor markets from a jobs creation standpoint and more importantly an

improvement in wage inflation.

Antonio DiCosola, Pavilion Advisory Group, reviewed the Investment Scorecard. Performance

has been above budgeted and modeled expectations and above benchmark since inception dated

November 1, 2012. Since inception the Surplus Cash account has returned +6.5% annualized,

which is nearly 3% more per year than the benchmark of the asset allocation benchmark

DRAFT

Investment Committee of the Board

February 9, 2015

Page 2

prior to changes the Committee made in 2012. However, for the quarter and fiscal year-to-date,

the Surplus Cash account was slightly behind the benchmark return. The Cash Balance Plan

trailed its benchmark return for the quarter but remains ahead on a fiscal year-to-date basis. All

key indicators were positive with minor exceptions. The standard deviation, which is a measure

of risk and volatility, was slightly higher than the benchmark for the Cash Balance Plan on a

three year basis (6.2% vs. 4.6%), but still remains well below the modeled expected standard

deviation of 10.6%. This measure reflects a three-year time horizon; however, the new

investment lineup was implemented a little more than two-years ago.

The threshold established to measure asset allocation positioning relative to the target allocations

within the Investment Policy Statement was slightly above the limit of 10% at 10.1% for the

Surplus Cash portfolio. This is a timing issue in relation to the initial funding of private real

estate assets. The portfolio has committed capital that has yet to be fully called and as a result

there is a larger than normal deviation to the target allocation for alternatives with a

corresponding offset to short-duration fixed income. This has decreased and should continue to

fall over time as commitments are called. The third indicator that was newly flagged this quarter

was manager compliance within the Surplus Cash account.

Watch-listed manager, Cortina Small Cap Growth, continued to trail its benchmark by a

significant margin despite posting a return of 6.6% for the quarter (Russell 1000 Growth

+10.1%). The team from Pavilion recommended and the Committee discussed allowing the

manager time to let the current investment strategy play out as manager styles typically come in

and out of favor in various market environments. However, Pavilion noted that they prefer to

limit the amount of time a manager remains on watch to no longer than a year.

Pavilion discussed the plan to reposition the portfolio according to the changes to the asset

allocation outlined in the Investment Policy Statement pending approval from the Board. The

changes include an increase of 5% to domestic equities and 5% to international equities and a

decrease of 10% to broad fixed income. The increase to domestic equities would be focused on

large-cap equities and Pavilion would still recommend an underweight to international equities,

albeit on the margin and in comparison to the higher target allocation.

Pavilion also discussed potential investment opportunities within energy related investments

given the recent collapse in oil prices. Managers have identified the energy sector as an area

where there are large potential dislocations, and as a result, have started to dedicate more

resources to the sector. Pavilion is monitoring the sector and talking with managers to determine

if there are any unique opportunities for El Camino to take advantage. Pavilion will present its

findings at the next Investment Committee meeting.

Mr. DiCosola also discussed the Direct Hedge Fund Portfolio within the Surplus Cash pool. It

was a difficult environment to navigate in the fourth quarter and results were mixed. However,

the Portfolio trailed its benchmark by 200 basis points during the quarter and has performed in-

line with its benchmark since inception. It was also noted that the hedge fund portfolio held up

well in January, while the S&P 500 Index was down approximately 3%.


February 9, 2015

Page 3

Dr. Davis commended Pavilion Advisory Group for their performance the past two and half

years.

7. Agenda Item 7 – 403(b) Review. Brian Montanez from Multnomah Group reviewed the

summary slide of the four tiers in the revised investment menu explaining there is no limitation

on participants; they can invest in any one fund or any group of funds. He stated that Tier 1 is

designed to evaluate participants who prefer to be delegators (69% of participants identify

themselves as delegators). In Tier 1, Multnomah recommends the removal of Fidelity Freedom

Funds due to portfolio manager changes, under performance and internal strategic changes. After

conducting a thorough review, RPAC had agreed with Multnomah Group’s recommendation to

replace Fidelity with T. Rowe Price Suite of Target Date Funds due to better portfolio

construction, seasoned manager tenure and higher performance. Mr. Montanez reviewed Investment Menu Tier 2 explaining it includes people who are

delegators and want broad capital market exposure and want to invest in index funds over the

long term. The index tier was expanded so that participants can build a portfolio of complete

index funds if they choose. Multnomah mapped the small cap index into existing small/mid cap

index, two new asset classes were added – total bond market index and total international index.

Fidelity Indices were used because they were the lowest net cost. Mr. Montanez explained that Tier 3 on the Investment Menu is also for more sophisticated

investors who need style pure fundamental building blocks so that they can build a diversified

portfolio and may want to be able to offset outside assets. Tier 3 included the most changes: 1)

Principal was replaced with NY Life in the Guaranteed Pool because they were able to more than

double the yield on the Stable Principle; 2) Core Bond was replaced with Core Plus to allow for

yield opportunities – JP Morgan Core Bond was replaced with Fidelity Total Bond; 3) Mid Caps

were removed and mapped into small caps due to underperformance, manager change, and no

diversification benefits; 4)Allianz Small Cap Value was replaced with Northern Small Cap due

to persistent style drift; and 5) Four new funds were added – Fidelity Spartan U.S Bond Market

Index for domestic intermediate bond index, Fidelity Spartan Global ex-US Index for

international equity index, Dodge & Cox for International Large Value and DFA International

Small Cap for International Small/Mid Cap. Mr. Montanez summarized the Scorecard for the 403(b) Retirement Plan and stated that out of 14

core investment options, 12 of the qualitative scores are in the top half. He pointed out that five

year metrics are used for the qualitative scores and that the two that are not in the top half

performed very strongly the past three or four years.

8. Agenda Item 8 – Committee Goals. Chair Zoglin asked the Committee for

thoughts on educational topics or training ideas for either the Committee itself and/or for the

Committee and Board as a whole 2016. Mr. Hussain suggested that the debt issue could be a

topic for the Board. Mr. DiCosola suggested inviting someone from Standard and Poors or

Moody’s to speak about what impacts credit ratings and the ability to get debt. Chair Zoglin

suggested working with Tomi to have this placed on the Board Agenda either in March, April or


February 9, 2015

Page 4

May. Discussion followed on whether it is beneficial to review and assess managers in third

quarter of FY16, which would be a full three years. Committee members agreed that a review

after three years would be reasonable. Chair Zoglin asked members to send him a note if they

think of any goals for next year.

9. Adjourn to Closed Session.

Motion: To adjourn to closed session at 7:10 pm.

Movant: Nelson

Second: Davis

Ayes: Boone, Brooks, Davis and Zoglin

Noes: None

Abstentions: None

Absent: None

Recused: None

10. Reconvene to Open Session. Open Session reconvened at 7:11pm. Committee

Chair Zoglin reported that the November 10, 2014 Closed Session minutes were unanimously

approved by those present.

11. Agenda Item 12 -Recruitment of New Committee Member. Chair Zoglin

announced that Ethan Cohen-Cole was no longer able to participate in the Investment Committee

Meetings and asked for thoughts on skills to look for in a new member. He reviewed the

recruiting process and suggested the search be made public as well as reach out to the other

committees, possibly have it as a topic at the March 25, 2015 All Committee gathering. Mr.

Dodd will reach out to a CFO acquaintance and other money management firms that Pavilion

works with to see if perhaps they know of someone who might be interested. Chair Zoglin will

also reach out to a possible candidate. He suggested reworking the Committee member

description. Chair Zoglin asked that Cindy Murphy, Board Liaison, publicly announce the

opening. Either Brooks Nelson or Nicki Boone will join Chair Zoglin in reviewing resumes

when they are received.

12. Adjournment - There being no further business of the Investment Committee, the

meeting was adjourned at 7:20pm.

Minutes prepared by: Lily Wong, Executive Assistant

______________________________ ______________________________

John Zoglin, Chair Dennis Chiu, Secretary

ECH Investment Committee El Camino Hospital Board of Directors

Att 4b - 1-26-15 Joint Meeting Minutes(3).docx

Separator Page

Minutes of the

Joint Finance Committee and Investment Committee Meeting

Of El Camino Hospital

Monday, January 26, 2015

El Camino Hospital, 2500 Grant Road, Mountain View, California

Conference Rooms A and B

1. Call to Order. The Open Session of the Joint Finance Committee and

Investment Committee Meeting was called to order by Chair John Zoglin at 5:30 p.m. on

Monday, January 26, 2015 in Conference Rooms A and B at El Camino Hospital, 2500 Grant

Road, Mountain View, California.

2. Roll Call. Finance Committee members present were Dennis Chiu, Kathy Cain,

Bill Hobbs and John Zoglin. Rich Juelis participated by phone. Nandini Tandon was absent.

Investment Committee members present were John Zoglin, Nicki Boone, and Brooks Nelson.

Jeff Davis, MD, and Ethan Cohen-Cole were absent.

3. Potential Conflict of Interests Disclosures. Chair Zoglin asked if any

committee member or anyone in the audience believes that a committee member may have a

conflict of interest on any of the items on the agenda. No conflict of interest was reported.

4. Introduction of New Finance Committee Member. Chair Zoglin introduced

new Finance Committee member, Kathy Cain. Ms. Cain is currently the Senior Vice President

and Chief Financial Officer of Benioff Children’s Hospital in Oakland. She has been Chief

Financial Officer at various hospitals in California and Hawaii for the past 20 years.

5. Agenda Item 5 – Investment Overview Iftikhar Hussain, Chief Financial

Officer, presented an overview of the accomplishments of the Investment Committee since

inception of 2012. He reviewed the Investment Committee Scorecard. For the fiscal year, the

benchmark is 1.4% and .8% was earned. There is a positive return on surplus cash and a high

return on the pension plan. He explained that our cash position is exceptionally strong with one

year’s worth of cash on the balance sheet. The surplus cash (unrestricted cash) is about $700M.

Mr. Hussain stated that the Pension Fund is just over $200M and fully funded, pointing out that

although the Pension Fund is not on the Balance Sheet, the returns on the Pension Fund helps to

reduce pension expense.

Mr. Hussain reviewed the Asset Allocation slide presented in the packet. He explained that at the

last Investment Committee meeting the Committee had recommended that the Board change the

allocation to move 10% from fixed income to equities, keeping in line with other healthcare

organizations. He then reviewed the Surplus Cash Executive Summary explaining that

investment returns and cash generated from our excellent financial performance have allowed us

to grow to a healthy position. He pointed out that we have fully funded the Pension Plan which

lowers the pension cost.

Chair Zoglin concluded the Investment Overview stating the Investment Committee meets

quarterly and tries to model out the portfolio by looking at other benchmarks as well as modeling

out risk versus return.

DRAFT


January 26, 2015

Page 2

6. Agenda Item 6 – Capital Plan and Financing. Mr. Hussain stated that even with

the $1B capital spending plan that we have for the next 10 years, our investments remain very

healthy due to careful management of operating margins. The cash we expect to have from

operations is sufficient to fund the spending and it is possible to fund the projects without issuing

any debt. However, the conditions and timing of going to the market opportunistically support

doing a financing in 2015. We have existing debt which includes $134M of fixed rate bonds at

5.47%, and it would make sense to go to the market and refinance that amount as well as borrow

$150M for new capital spending, subject to meeting the required restrictions for issuance of tax-

exempt debt. Jennifer Brown from Ponder and Co. pointed out that rates have continued to

improve and debt service savings for the refunding in today’s market would be near 13% on a

present value basis, including the cost of negative arbitrage. Negative arbitrage results from the

requirement to fund an escrow to the call date in 2017 that will earn a lower rate of return than

the cost of the refunding bonds issued in 2015. The closer we get to the call date, the lower the

cost of negative arbitrage. To refinance the $134M, it would take about three months to ramp up

a bond transaction and ECH would be exposed to market risk (the risk that interest rates rise

above a desired savings level) during this time. A generally accepted hurdle rate for savings is

5%, as long as rates don’t rise such that savings erode below this level, it makes sense to pursue

the refunding transaction as a standalone issue to lock in the savings.

Mr. Hussain reviewed the preliminary plan stating he would like to refinance the existing

bonds and issue $150M new debt in early 2015. The project list will be reviewed to determine

which projects are eligible for tax-exempt financing in 2015. Another debt issue will be

considered in 2018.

Mr. Hussain updated the Committee on the annual bond review which occurred in November

2014. He stated that Standard and Poor’s issued the Hospital an A+ rating. Some comments

from S & P were that operating performance is outstanding and the balance sheet is strong. The

size of El Camino Hospital relative to its competition is the main reason we did not receive an

upgraded rating.

Ms. Brown pointed out that the Series 2009 bonds ($50M) were issued in a variable rate mode

and are swapped to fixed. The Series 2007 fixed-rate bonds were initially offered as auction rate

securities in 2006 and swapped to fixed. When the auction rate market blew up, the bonds were

restructured as fixed-rate bonds and some of the swaps were terminated. We have 100% fixed

rate exposure and could afford to have some variable-rate exposure instead. However, with rates

as low as they are now, it is prudent to lock in as low as possible for the long term. The thought

is to balance the debt profile with more variable rate exposure in the future and achieve a mix

appropriate for the Hospital. In response to the question on spending, Ms. Brown explained that

there are requirements on spending down tax-exempt bond proceeds. A portion of the bond

funds must be spent within the first six months and the rest staggered over two years to avoid

penalties. Mr. Hussain stated there are advantages to going frequently to the market, mainly so

that the buyers are familiar with the Hospital. The idea is to maintain a debt to equity ratio of

30% or less and go to market when conditions are right. Nicki Boone asked if we were to go

forward with $150M in new capital, are we likely to stay at or above the current portfolio levels

for the next three to five years. Mr. Hussain responded that we are in a very good position on

cash even if we do not go to market.


January 26, 2015

Page 3

Ms. Brown reviewed the Pro Forma Ratio Analysis with Additional Debt stating that we are

currently underleveraged and will remain so after the first debt issue. Going over the timeline,

she explained that the first step would be to identify the projects that can be realistically financed

with tax exempt bond proceeds. The refunding currently is strong, and the financing process and

documentation can begin as soon as ECH is ready to proceed. The process for the new money

financing is the same with the addition of tax work that will be completed by the bond lawyers.

Ms. Brown suggested that we complete all necessary documentation for a bond transaction and

be ready to go to market as soon as possible. Bill Hobbs suggested that sooner is better than later

and to take the opportunity when it is available since the downside is very small. Kathy Cain

agreed, adding that if we were to wait something negative could happen within the healthcare

market making it harder to refund or issue new debt. Ms. Brown pointed out that once all

documentation is ready, the financials are good for 135 days. She concluded by stating the

biggest work that must be done to finance new capital is to identify which assets can be financed

with tax exempt proceeds, timing of expenditures and cost of negative arbitrage in the project

fund to determine how and when to proceed.

7. Adjournment - There being no further business of the Joint Finance Committee

and Investment Committee, the meeting was adjourned at 6:30pm.

Minutes prepared by: Lily Wong, Executive Assistant

______________________________ ______________________________

John Zoglin, Chair Dennis Chiu, Secretary

ECH Investment Committee El Camino Hospital Board of Directors

______________________________

Dennis Chiu, Chair

ECH Finance Committee

Att 4c- A Road Map for Investing Overseas - WSJ.pdf

Separator Page

5/1/15, 2:51 PMA Road Map for Investing Overseas - WSJ

Page 1 of 3http://www.wsj.com/articles/a-road-map-for-investing-overseas-1430491368

Now would be an opportune time for investors to adopt a better foreign policy.

In the first quarter, U.S. investors poured $66.2 billion into mutual funds and exchange-traded funds that focus on stocks abroad, according to investment-research firmMorningstar, up from $37.9 billion in the same period a year prior. As of March 31,investors had nearly $2.7 trillion in foreign-focused funds, according to the InvestmentCompany Institute, a trade group.

The investments are often paying off. Benchmark indexes in Australia, Brazil, Germany,Mexico and South Korea are among those that are outpacing the S&P 500 in 2015 afterlagging behind the U.S. each of the past two years.

But just like tourists who talk too loud and visit sacred sites in beachwear, investors whoventure abroad sometimes behave in ways they might not consider acceptable at home.Chasing hot performance and placing short-term bets don’t suddenly become solidstrategies if you pursue them overseas.

Make sure you’re investing abroad for the right reasons, and with reasonableexpectations about possible returns.

Find your new home now ... Price Address, City, Zip

It can be wise to diversify your stock portfolio internationally. Foreign stocks generally

This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visithttp://www.djreprints.com.

http://www.wsj.com/articles/a-road-map-for-investing-overseas-1430491368

MARKETS WEEKEND INVESTOR

A Road Map for Investing OverseasForeign stocks look cheaper than U.S. shares. But keep expectations in check.

|

Traders at the Frankfurt stock exchange in Germany. PHOTO: REUTERS

May 1, 2015 10:42 a.m. ET

By LIAM PLEVEN

http://www.wsj.com/news/markets

http://www.wsj.com/news/types/weekend-investor



look cheap by comparison to U.S. stocks now. Interest rates also may stay low longeroutside the U.S., which could give markets overseas a boost. Many experts say typicalU.S. investors should consider putting at least 20% to 30% of their stock portfolio inforeign shares.

“There are good arguments why you would want to invest outside the U.S.,” saysJoachim Klement, chief investment officer at Wellershoff & Partners, an investmentconsultancy based in Zurich.

But there will almost certainlybe bumps along the way. Whenthe Federal Reserve raisesinterest rates in the U.S., forexample, stocks in Europe andAsia could take a deeper initialhit, in part due to theimportance of the Americaneconomy, Mr. Klement says.

The sharp drop in someEuropean markets onWednesday showed how thatcould play out. The U.S.government said that morningthat the economy had slowedin the first quarter, and theS&P 500 fell 0.4%. Thebenchmark index in Germany,home to many majorexporters, dropped 3.2%.

“Investors pretend to be long-term investors until the firstlosses come in,” Mr. Klementsays. “Then they abandonsomething that is actually agood long-term investment.”

There are other warning signs.While much of the cash thatinvestors are funneling abroad

is going into funds that invest in different countries and regions, big chunks are flowinginto funds that take concentrated risks.

For example, according to Morningstar, ETFs that focus on Indian stocks took in $1.8billion in the first quarter, on top of the $2.7 billion they received in 2014, when the S&PBSE Sensex Index logged a 29.9% gain, compared with an 11.4% rise in the S&P 500. Thisyear, the BSE is down 1.8%, while the S&P is up 1.3%, through Thursday.

On the other hand, the argument that stocks are often cheaper abroad than in the U.S.looks fairly sound. But there are potential pitfalls there, too.

U.S. stocks are priced above the historical average as measured by the cyclically adjustedprice/earnings ratio, or CAPE, which is based on average inflation-adjusted earningsover the prior 10 years and was popularized by Robert Shiller, a Yale Universityeconomist and Nobel Prize winner.

The CAPE for U.S. stocks has hovered around 27 in recent months, while the historicalaverage dating back to the 19th century is 16.6, according to Mr. Shiller’s data.

http://topics.wsj.com/person/S/Robert-Shiller/551



By

comparison, the CAPE is well below the historical average in many countries, includingGreece, France, Italy, Japan, Malaysia, Peru, Poland, Singapore and Spain, according todata collected by Mr. Klement.

Some critics are skeptical of applying the CAPE formula to other countries. In many ofthem, only relatively recent data on stocks are available. The CAPE may tend to behigher or lower in some countries based on local circumstances. And the mix of stocksthat comprise an index can change significantly.

Mr. Shiller says in an email that he has been working on how to adjust the ratio tomeasure foreign markets, which could help address potential shortcomings. But, headds, “I still tend to rely on CAPE…in my thinking about different countries.”

A more serious problem may arise if investors draw too many conclusions. “The relationbetween CAPE and future expected returns was never meant to be [an] inviolable law ofnature,” Mr. Shiller says.

Just because CAPE suggests stocks are undervalued or overvalued doesn’t mean theywill go up or down in a day, a week, a month or a year. U.S. stocks were trading above thehistorical average in 2014, but the S&P 500 still rose significantly.

“Valuation is not a timing tool. Short-term, anything can happen,” says Mebane Faber,chief investment officer of El Segundo, Calif.-based Cambria Investment Management.It runs the Cambria Global Value ETF, which launched just over a year ago and invests inforeign markets based on measures similar to CAPE. The fund charges annual fees of0.69%, or $69 on a $10,000 investment.

Investors should be patient. Mr. Klement says the correlation between CAPE and futurereturns generally starts to show up when looking at returns five years down the road,and then gets stronger. “You’re probably better off if you’re thinking of seven to 10years,” he says.

And they should spread their bets. Part of the value of diversification comes fromfluctuations in currencies. That often has been working against U.S. investors this yearas the dollar strengthens, but it also can benefit them.

Many ETFs, such as the Vanguard Total International Stock ETF, and mutual funds, suchas the T. Rowe Price International Stock Fund, invest in an array of developed andemerging markets, including a number where stocks are undervalued as measured byCAPE, according to Mr. Klement’s data. The funds charge 0.14% and 0.83%, respectively.

To put it diplomatically, investors who venture abroad without a plan could easily getlost.

—Email: [email protected]

Copyright 2014 Dow Jones & Company, Inc. All Rights Reserved

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ON TOTAL RETURN »:

How Foreign Markets Stack Up by Shiller P/E (http://blogs.wsj.com/totalreturn/2015/05/01/valuing-foreign-stock-markets-by-the-shiller-pe/)

http://quotes.wsj.com/etf/GVAL

http://quotes.wsj.com/etf/VXUS

http://quotes.wsj.com/mutualfund/%22

http://blogs.wsj.com/totalreturn/

http://blogs.wsj.com/totalreturn/2015/05/01/valuing-foreign-stock-markets-by-the-shiller-pe/

Att 6a - Score Card Mar 2015.pdf

Separator Page

El Camino Hospital Investment Committee ScorecardMarch 31, 2015

1

Key Performance Indicator Status El Camino Benchmark El Camino Benchmark El Camino Benchmark

FY15

Year-end

Budget

Expectation

Per Asset

Allocation

Investment PerformanceMar

2014/2012

Surplus cash balance & op. cash (millions) $716.9 -- -- -- -- -- $621.5 --

Surplus cash return 1.6% 1.7% 2.6% 3.0% 6.6% 6.5% 4.0% 5.0%

Cash balance plan balance (millions) $218.3 -- -- -- -- -- $217.3 --

Cash balance plan return 1.9% 2.0% 3.3% 2.9% 10.5% 9.6% 6.0% 6.7%

403(b) plan balance (millions) $314.7 -- -- -- -- -- -- --

Risk vs. ReturnMar

2014/2012

Surplus cash Sharpe ratio 2.11 2.00 -- -- 2.05 1.93 -- 0.66

Net of fee return 6.3% 6.2% -- -- 6.6% 6.5% -- 5.0%

Standard deviation 2.9% 3.0% -- -- 3.1% 3.3% -- 7.2%

Cash balance Sharpe ratio 1.63 1.69 -- -- 2.04 1.93 -- 0.54

Net of fee return 10.0% 9.0% -- -- 10.5% 9.6% -- 6.7%

Standard deviation 5.9% 5.2% -- -- 5.0% 4.8% -- 10.6%

Asset Allocation

Surplus cash absolute variances to target 6.4% < 10% -- -- -- -- -- --

Cash balance absolute variances to target 3.7% < 10% -- -- -- -- -- --

Manager Compliance

Surplus cash manager flags 15 < 16 -- -- -- -- -- --

Cash balance plan manager flags 15 < 18 -- -- -- -- -- --

Since Inception (annualized)3-year

1Q 2015

1Q 2015

1Q 2015

Since Inception (annualized)Fiscal Year-to-date

Glossary of Terms for Scorecard

2

Key Performance Indicator Definition / Explanation

Investment Performance

Surplus cash balance (millions)

Surplus cash return

Cash balance plan balance (millions)

Cash balance plan return

403(b) plan balance (millions)

Risk vs. Return

Surplus cash 3-year Sharpe ratio

3-year return

3-year standard deviation

Cash balance 3-year Sharpe ratio

3-year return

3-year standard deviation

Asset Allocation

Surplus cash absolute variances to target

Cash balance absolute variances to target

Manager Compliance

Surplus cash manager flags

Cash balance plan manager flags

The Sharpe ratio is the excess return of an investment over the risk free rate (US Treasuries) generated per unit of risk (standard deviation) taken to obtain that return. The higher the

value, the better the risk-adjusted return. It is important to view returns in this context because it takes into account the risk associated with a particular return rather than simply focusing

on the absolute level of return.

Sharpe ratio = (actual return - risk free rate) / standard deviation

The Surplus Cash portfolio's 3-year Sharpe ratio was above that of its benchmark and well above the expected Sharpe ratio modeled. This was due to very strong investment returns with

very little volatility over the period. The Cash Balance Plan's 3-year Sharpe ratio exceeded modeling expectations but lagged its benchmark by a very slim margin as the Plan took on

slightly more risk (standard deviation) than the benchmark. Both accounts have demonstrated strong risk-adjusted returns since inception.

Investment performance for the Surplus Cash portfolio lagged the benchmark modestly for the quarter and has trailed fiscal year-to-date, but remains ahead of the benchmark since

inception (Nov. 1, 2012) with a healthy return of 6.6% annualized. The assets within the Surplus Cash account ended the quarter at $716.9 million, well ahead of the budgeted amount for

June 30, 2015.

The Cash Balance Plan's performance was in-line with its benchmark for the quarter and has outperformed its benchmark fiscal year-to-date and since inception. The since inception

annualized return stands at 10.5%, 90 bps ahead of its benchmark per year. The assets within the Cash Balance Plan ended the quarter at $218.3 million, $1.0 million above the budgeted

amount for June 30, 2015.

The 403(b) balance increased $16.9 million during the quarter.

This represents the sum of the absolute differences between the portfolio's allocations to various asset classes and the target benchmark's allocations to those asset classes. The higher the

number, the greater the portfolio's allocations deviate from the target benchmark's allocations, indicating a higher possibility for the portfolio's risk and return characteristics to differ from

the Board's expectations.

The threshold for an alert "yellow" status is set at 10% and the threshold for more severe "red" status is set at 20%. Both portfolios are well below the 10% threshold as the private real

estate managers have called capital recently.

This section represents how individual investment managers have fared and draws attention to elevated concerns regarding performance, organizational stability, investment personnel,

accounting and regulatory issues, and portfolio characteristics all at the individual manager level. The number of flags are aggregated and a percentage of the total is used to highlight an

alert "yellow" status (40% of the performance flags) and a more severe "red" status (50%). In total there are 90 potential flags for the Surplus Cash account (40 performance based) and

108 for the Cash Balance Plan (48 performance based).

Currently, both accounts are within the threshold.

Att 6b - 1Q15 El Camino Hospital Quarterly Report.pdf

Separator Page

PerformanceReview

El Camino Hospital

1st Quarter 2015

Pavilion Advisory Group Inc.227 W. Monroe Street, Suite 2020Chicago, IL 60606Phone: 312-798-3200Fax: 312-902-1984www.pavilioncorp.com

1 Executive Summary 1

2 Surplus Cash - Performance Summary 13

3 Surplus Cash - Asset Class Diversification 23

4 Cash Balance Plan - Performance Summary 30

5 Cash Balance Plan - Asset Class Diversification 40

6 Manager Evaluation 47

7 Capital Markets Review 80

8 Appendix 88

Table of Contents

Executive Summary

1

Performance: Most Recent Quarter Asset Allocation

Manager

Total

Assets

($, mil.)

Percent

of Total

Target

Allocation

Variance

to Target

Target

Range

Within

Policy

Range

Domestic Equity $174.1 26.2% 25.0% + 1.2% 20-30% Yes

Internationa l Equi ty $ 89.5 13.5% 15.0% - 1.5% 10-20% Yes

Short-Duration Fixed $ 79.7 12.0% 10.0% + 2.0% 8-12% Yes

Market-Duration Fixed $195.5 29.4% 30.0% - 0.6% 25-35% Yes

Alternatives $125.4 18.9% 20.0% - 1.1% 17-23% Yes

Total (X District) $664.2 100.0%

Surplus Cash Executive SummaryDashboardAs of March 31, 2015

1.6%

1.1%

5.5%

0.6%1.1%

2.1%1.7%

1.8%

3.5%

0.6%

1.6%1.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%El Camino Hospital

Benchmark

______________________________1 Reflects the date Pavilion’s recommended portfolio was implemented (November 1, 2012).

Manager News/Issues• Domestic equity managers Sands and Cortina notably underperformed during the quarter relative to their

respective benchmarks and peers. Both managers were negatively impacted by poor stock selection.Sands’ selection within energy and information technology hindered results, while Cortina’s health caresector stock selection weighed on performance.

• Market duration fixed income managers Dodge & Cox and MetWest both trailed the BC Aggregate as aresult of underweight duration positioning during the declining interest rate environment of the quarter.

• The Direct Hedge Fund Portfolio outperformed the HFRI Fund of Funds Composite Index by 10 basispoints during the first quarter.

Funding News/Issues• During February, $3.0 million of the capital committed to Walton Street Real Estate Fund VII was called.• In March, the portfolio was rebalanced according to newly initiated policy targets with $63.0 million

transferred out of market duration fixed income and into domestic and international equity.• In March, $1.3 million of the capital committed to Oaktree Real Estate Opportunities Fund VI was called.• $5.0 million was withdrawn from the Barrow Hanley Short-Term account to fund an initial investment in

Stone Milliner, a macro hedge fund manager, as of April 1, 2015.

Portfolio Updates

6.6%

19.6%

7.6%

0.7%2.7%

6.5%6.5%

20.1%

8.2%

0.9% 2.2%

6.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0% El Camino Hospital

Benchmark

Performance: Since Inception1

2

Performance: Most Recent Quarter Asset Allocation

1.9%

1.0%

4.8%

0.5%

1.3%

2.3%2.0%

1.7%

3.5%

0.6%

1.6% 1.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%El Camino

BenchmarkManager

Total

Assets

($, mil.)

Percent

of Total

Target

Allocation

Variance

to Target

Target

Range

Within

Policy

Range

Domestic Equity $ 73.8 33.8% 32.0% + 1.8% 27-37% Yes

Internationa l Equi ty $ 38.3 17.5% 18.0% - 0.5% 15-21% Yes

Short-Duration Fixed $ 9.2 4.2% 5.0% - 0.8% 0-8% Yes

Market-Duration Fixed $ 54.0 24.7% 25.0% - 0.3% 20-30% Yes

Alternatives $ 43.0 19.7% 20.0% - 0.3% 17-23% Yes

Total $218.3 100.0%

Cash Balance Plan Executive SummaryDashboardAs of March 31, 2015

______________________________1 Reflects the date Pavilion’s recommended portfolio was implemented (November 1, 2012).

Manager News/Issues• Domestic equity managers Sands and Cortina notably underperformed during the quarter relative to

their respective benchmarks and peers. Both managers were negatively impacted by poor stockselection. Sands’ selection within energy and information technology hindered results, while Cortina’shealth care sector stock selection weighed on performance.

• Market duration fixed income managers Dodge & Cox and MetWest both trailed the BC Aggregate as aresult of underweight duration positioning during the declining interest rate environment of thequarter.

• Hedge fund-of-funds managers, Lighthouse and Pointer, outperformed the HFRI Fund of FundsComposite Index. The hedge fund-of-funds composite added 90 basis points of excess performance.

Funding News/Issues• In January, a $3.6 million employer contribution was made with the proceeds split between the

Vanguard S&P Index Fund ($1.3M), Barrow Hanley Short-Term Fixed ($0.3M), and Lighthouse ($2.0M).• An additional $3.6 million employer contribution was made in March with the proceeds split between

Walter Scott ($0.7M), Northern Cross ($0.5M), and Barrow Hanley Short-Term Fixed ($2.4M).• During February, $1.8 million of the capital committed to Walton Street Real Estate Fund VII was called.• In March, $0.8 million of the capital committed to Oaktree Real Estate Opportunities Fund VI was called.

Performance: Since Inception1 Portfolio Updates

10.5%

19.9%

7.6%

0.7%

3.3%

11.6%

9.6%

20.1%

8.2%

0.9%2.2%

7.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0% El Camino

Benchmark

3

Rebalancing ConsiderationsSecond Quarter 2015

Market Segment Recommendation Observations

Fixed Income Reduce large deviations from target, but lean towards lower

weighting

Projected fixed income returns are low given the current yield environment and

policy normalization could begin later this year.

US Large Cap/Small Cap Large and small cap stocks should be at/near target

allocations

Valuations between large- and small-cap stocks have moved to fair value.

Dividend yields, buybacks, and M&A activity support large-cap stocks. Dollar

strength, however, reduces the competitiveness of large cap stocks to a greater

degree than small cap stocks, which generate more of their revenue domestically.

Additionally, energy stocks, which are a larger percentage of the large cap index,

are likely to remain under pressure if oil prices stay low.

US Growth/Value Maintain equal allocation Growth and value have moved in and out of favor during the past three years, with

no style outperforming significantly. A stronger economy tends to benefit

economically sensitive, value oriented stocks. Monetary policy normalization is a

bigger headwind for more leveraged value companies, however. Valuations favor

neither style. In aggregate, the evidence is not compelling to warrant a position neither style. In aggregate, the evidence is not compelling to warrant a position

favoring growth or value.

Developed Int'l Markets Equity Rebalance toward target allocation Both Japan and Europe are pursuing additional quantitative easing of significant

size. Combined with increased competitiveness due to currency depreciation,

there are increased signs of economic stabilization and growth in some key

countries. With valuations at the lower end of their historical range, we

recommend rebalancing back toward target allocations.

Emerging Markets Equity Maintain underweight to target allocation Economic growth remains strong in the emerging markets, although slowing from

recent levels. Funds flows are returning and valuations are attractive. However,

emerging markets face challenges from a strong U.S. dollar, higher U.S. interest

rates, as well as lower commodity prices. Expectations are that there will be

increasing divergence on prospects of individual countries with an overall pickup

in volatility. While we believe emerging markets should outperform longer term,

there are heightened risks near term.

Alternatives Maintain target allocation, but lean towards higher

weighting pending liquidity budget availability

Vintage year diversification is important for private equity and venture capital.

Hedge funds provide important diversification benefits. European banks finally

have begun to deleverage. We anticipate that distressed debt funds focused on

Europe will be able to generate attractive returns. Prolonged low energy prices are

likely to produce some attractive investment opportunities in hedge funds and

private equity.

4

Portfolio Update - March 2015The Surplus Cash portfolio excluding District assets returned +1.6% for the quarter, modestly underperforming its benchmark. Relative results weredriven by manager performance, while asset allocation differences relative to the benchmark had a slightly positive impact on the portfolio. Dodge& Cox and MetWest, the portfolio’s two market duration fixed income managers, trailed the Barclays Aggregate as underweight durationpositioning weighed on the managers’ performance during a declining interest rate environment in the first quarter. Within domestic equity, large-cap growth manager Sands and small-cap growth manager Cortina detracted significantly from performance. Both managers struggled as a result ofpoor stock selection. Sands’ selection within energy and information technology weighed on results. Within information technology specifically,Sands’ holdings in Chinese internet software and services companies Baidu (-8.6%) and Alibaba (-19.9%) were most detrimental. Cortina’s healthcare sector stock selection weighed the most on results. The majority of underperformance within the sector occurred during January when anumber of the manager’s holdings preannounced negative earnings for the quarter. Additionally, Cortina’s underweight allocation to thebiotechnology industry within health care hindered results. International equity managers partially offset the negative impact as Walter Scott andNorthern Cross outperformed. The Alternatives composite also added value with real estate performance yet to be updated and the Hedge FundComposite outperforming the HFRI Fund of Funds Index by 10 basis points.

Investment ActivityDuring February, $3.0 million of the capital committed to Walton Street Real Estate Fund VII was called. In March, the portfolio was rebalancedaccording to newly initiated policy targets with $63.0 million transferred out of market duration fixed income ($29.0 million from Dodge & Cox and$34.0 million from MetWest) and into domestic and international equity ($33.0 million to the Vanguard Institutional Index, $15.0 million to WalterScott, and $15.0 million to Northern Cross). Additionally, $5.0 was withdrawn from the Barrow Hanley Short-Term Fixed account to fund an initialinvestment in Stone Milliner, a macro hedge fund manager, as of April 1, 2015. Also during March, Oaktree Real Estate Opportunities Fund VIcalled $1.3 million of the capital committed.

Recommendations or Action ItemsPavilion recommends performing a search/review of small-cap growth equity manager, Cortina, due to continued performance struggles. Pavilionalso recommends utilizing cash flows to reduce underweight exposure to international equity and reduce overweight exposure to large-cap U.S.equity.

Surplus Cash Executive Summary

5

Portfolio Update - March 2015The Cash Balance Plan returned +1.9% during the quarter, performing in line with its benchmark. International equity and alternative managersadded the most value. International equity managers Walter Scott and Northern Cross outpaced the MSCI ACWI ex U.S. Index as both managersbenefited from favorable sector positioning. Walter Scott’s overweight exposure to consumer discretionary and health care added value, whileNorthern Cross’ underweight exposure to energy and utilities proved beneficial. Hedge fund-of-funds managers also added value with Lighthouseand Pointer both outperforming the HFRI Fund of Funds Composite Index. Domestic equity and market duration fixed income managers offset thepositive impact. Within domestic equity, large-cap growth manager Sands and small-cap growth manager Cortina detracted significantly fromperformance. Both managers struggled as a result of poor stock selection. Sands’ selection within energy and information technology weighed onresults. Within information technology specifically, Sands’ holdings in Chinese internet software and services companies Baidu (-8.6%) andAlibaba (-19.9%) were most detrimental. Cortina’s health care sector stock selection weighed most on results. The majority of underperformancewithin the sector occurred during January when a number of the manager’s holdings preannounced negative earnings for the quarter. Additionally,Cortina’s underweight allocation to the biotechnology industry within health care hindered results. Dodge & Cox and MetWest, the portfolio’s twomarket duration fixed income managers, trailed the Barclays Aggregate as underweight duration positioning weighed on the managers’ performanceduring a declining interest rate environment in the first quarter.

Investment ActivityA $3.6 million employer contribution was made in January with the proceeds split between the Vanguard Institutional Index Fund ($1.3 million), theBarrow Hanley Short-Term Fixed account ($0.3 million), and the Lighthouse Diversified Fund ($2.0 million). An additional $3.6 million employercontribution was made after quarter-end in April with the proceeds split between Walter Scott ($0.7 million), Northern Cross ($0.5 million), andBarrow Hanley Short-Term Fixed ($2.4 million). Furthermore, $1.8 million of the capital committed to the Walton Street Real Estate Fund VII wascalled in February and $0.8 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in March.

Recommendations or Action ItemsPavilion recommends performing a search/review of small-cap growth equity manager, Cortina, due to continued performance struggles. The Plan'sasset allocation has been rebalanced with cash inflows during April and is in-line with Pavilion's tactical views.

Cash Balance Plan Executive Summary

6

Surplus Cash Executive SummaryManager Compliance ChecklistAs of March 31, 2015

Managers

Vanguard

S&P 500

Index

Sands Large

Cap Growth

(Touchstone)

Barrow

Hanley LCV

Cortina Small

Cap Growth

Wellington

Small Cap

Value

Walter Scott

Int'l (Dreyfus)

Northern

Cross

(Harbor Int'l)

Organizational/Product Issues

No changes to investment team + + + + + + +

No organizational changes + + + + + + +

No accounting or regulatory concerns + + + + + + +

Currently in adherence to guidelines + + + + + + +

Characteristics meet stylistic expectations + + + + + + +

Relative Performance 1, 2

Three-year return > benchmark In Line -100 bps + -1,000 bps + -120 bps +

Three-year ranking > peer group median + + + 94th + 68th 55th

____________________________1 Manager performance is evaluated net of investment management fees.2 For each manager that underperformed its benchmark and/or peer group, the magnitude of underperformance and/or peer group ranking is shown.

Five year return > benchmark In Line + -30 bps -350 bps + + +

Five year ranking > peer group median + + + 80th + 54th +

Performance Status + + + - + + +

Date performance status changed 3Q14

Summary Status + + + - + + +

Date summary status changed 1Q15

7

Surplus Cash Executive SummaryManager Compliance ChecklistAs of March 31, 2015

Managers

Barrow

Hanley Short

Fixed

Dodge & Cox

Fixed

MetWest

Fixed


No changes to investment team + + +

No organizational changes + + +

No accounting or regulatory concerns + + +

Currently in adherence to guidelines + + +

Characteristics meet stylistic expectations + + +


Three-year return > benchmark -20 bps + +

Three-year ranking > peer group median 70th + +


Five year return > benchmark -20 bps + +

Five year ranking > peer group median 75th 55th +

Performance Status + + +

Date performance status changed

Summary Status + + +

Date summary status changed

8

Cash Balance Plan Executive SummaryManager Compliance ChecklistAs of March 31, 2015

Managers

Vanguard

S&P 500

Index

Sands Large

Cap Growth

(Touchstone)

Barrow

Hanley LCV

Cortina Small

Cap Growth

Wellington

Small Cap

Value

Walter Scott

Int'l (Dreyfus)

Northern

Cross

(Harbor Int'l)


No changes to investment team + + + + + + +

No organizational changes + + + + + + +

No accounting or regulatory concerns + + + + + + +

Currently in adherence to guidelines + + + + + + +

Characteristics meet stylistic expectations + + + + + + +


Three-year return > benchmark In Line -100 bps + -1,000 bps + -120 bps +




Five year return > benchmark In Line + -10 bps -350 bps + + +

Five year ranking > peer group median + + + 80th + 54th +

Performance Status + + + - + + +

Date performance status changed 3Q14

Summary Status + + + - + + +

Date summary status changed 1Q15

9

Cash Balance Plan Executive SummaryManager Compliance ChecklistAs of March 31, 2015

Managers

Barrow

Hanley Short

Fixed

Dodge & Cox

Fixed

MetWest

Fixed Lighthouse Pointer


No changes to investment team + + + + +

No organizational changes + + + + +

No accounting or regulatory concerns + + + + +

Currently in adherence to guidelines + + + + +

Characteristics meet stylistic expectations + + + + +


Three-year return > benchmark -20 bps + + + +

Three-year ranking > peer group median 70th + + N/A N/A


Three-year ranking > peer group median 70th + + N/A N/A

Five year return > benchmark -20 bps + + + +

Five year ranking > peer group median 75th 57th + N/A N/A

Performance Status + + + + +

Date performance status changed

Summary Status + + + + +

Date summary status changed

10

800

Surplus Cash Executive SummaryMarket Value ReconciliationAs of March 31, 2015

$ in Millions 2008 2009 2010 2011 20121 2013 20141st Quarter

2015

Beginning Market Value $395.6 $374.4 $313.5 $322.6 $396.7 $493.8 $596.3 $651.6

Net Cash Flow ($16.3) ($91.8) ($10.5) $55.6 $67.8 $55.3 $27.4 $2.1

Income n/a n/a n/a n/a n/a n/a $12.3 $3.3

Realized Gain/(Loss) n/a n/a n/a n/a n/a n/a $10.4 $1.6

Unrealized Gain/(Loss) n/a n/a n/a n/a n/a n/a $5.3 $5.6

Capital App/(Dep) ($5.0) $30.9 $19.6 $18.5 $29.3 $47.2 $27.9 $10.5

End of Period Market Value $374.4 $313.5 $322.6 $396.7 $493.8 $596.3 $651.6 $664.2

Return Net of Fees -1.2% 11.3% 6.4% 5.1% 6.6% 8.8% 4.4% 1.6%

0

100

200

300

400

500

600

700

$,

Mil

lio

ns

___________________________________1 Beginning 8/1/2012, market values represent the Surplus Cash portfolio excluding District assets, with $13.9 million of District assets shown as a cash outflow in the third quarter of 2012.

11

250

Cash Balance Plan Executive SummaryMarket Value ReconciliationAs of March 31, 2015

$ in Millions 2008 2009 2010 2011 2012 2013 20141st Quarter

2015

Beginning Market Value $104.0 $80.5 $116.1 $129.2 $130.9 $168.8 $198.3 $213.7

Net Cash Flow $4.3 $11.8 ($0.8) $2.3 $14.7 $2.4 $3.8 $0.4

Income n/a n/a n/a n/a n/a n/a $3.4 $0.7

Realized Gain/(Loss) n/a n/a n/a n/a n/a n/a $4.7 $0.1

Unrealized Gain/(Loss) n/a n/a n/a n/a n/a n/a $3.4 $3.4

Capital App/(Dep) ($27.8) $23.8 $13.9 ($0.6) $23.2 $27.2 $11.5 $4.3

End of Period Market Value $80.5 $116.1 $129.2 $130.9 $168.8 $198.3 $213.7 $218.3

Return Net of Fees -25.9% 28.2% 11.7% -0.9% 17.0% 15.8% 5.6% 1.9%

0

25

50

75

100

125

150

175

200

225

$,

Mil

lio

ns

12

Surplus Cash - PerformanceSummary

13

Total Surplus Cash X District Total Surplus Cash Benchmark Pre-Pavilion Surplus Cash Total Benchmark

0.0

2.0

4.0

6.0

8.0

10.0

Re

turn

(%)

Quarter YearTo

Date

1Year

3Years

5Years

10Years

SinceInception

1.0 1.0

5.0

4.4

5.0

4.74.3

1.7 1.7

5.7

6.2 6.1

5.2

6.5

1.6 1.6

4.7

6.36.0

5.7

6.6

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Total Surplus Cash X District 1.6 1.6 4.7 6.3 6.0 5.7 6.6 2y 5m

Total Surplus Cash Benchmark 1.7 1.7 5.7 6.2 6.1 5.2 6.5

Pre-Pavilion Surplus Cash Total Benchmark 1.0 1.0 5.0 4.4 5.0 4.7 4.3

Performance SummaryTotal Surplus Cash X District vs. Total Surplus Cash Benchmark*As of March 31, 2015

________________________________________* Returns prior to August 1, 2012 include District assets. All returns are net of investment management fees.* Since inception returns reflect the date Pavilion's recommended portfolio was implemented (11/1/2012).

14

3 Years 5 Years

0.0

2.0

4.0

6.0

8.0

10.0

Retu

rn (%

)

0.0 2.0 4.0 6.0 8.0 10.0

Risk (Standard Deviation %)

Pre-Pavilion Surplus Cash Total Benchmark(2.0, 4.4)

Total Surplus Cash Benchmark(3.0, 6.2)

Total Surplus Cash X District(2.9, 6.3)

0.0

2.0

4.0

6.0

8.0

10.0

Retu

rn (%

)

0.0 2.0 4.0 6.0 8.0 10.0


Pre-Pavilion Surplus Cash Total Benchmark(2.2, 5.0)

Total Surplus Cash Benchmark(2.8, 6.1)

Total Surplus Cash X District(2.8, 6.0)

Performance SummaryRisk and Return Summary (Net of Fees)As of March 31, 2015

15

Total Fund Performance

0.00% 0.80% 1.60% 2.40%-0.80 %

Total Fund

Total Fund Benchmark

Total Value Added

1.56%

1.69%

-0.12 %

Total Value Added:-0.12 %

0.00% 0.08% 0.16%-0.08 %-0.16 %-0.24 %

Other

Manager Value Added

Asset Allocation

-0.04 %

-0.13 %

0.04%

Total Asset Allocation:0.04%

Average Active Weight

0.00% 5.00% 10.00%-5.00 %-10.00 %

Total Alternatives Composite

Market Duration Fixed Income Composite

Short Duration Fixed Income Composite

International Equity Composite

Domestic Equity Composite

We

igh

t

(%)

-2.43 %

2.48%

3.36%

-2.89 %

-0.51 %

Asset Allocation Value Added

0.00% 0.06% 0.12%-0.06 %-0.12 %

0.00%

0.05%

-0.04 %

0.04%

0.00%

Total Manager Value Added:-0.13 %

Manager Value Added

0.00% 0.30% 0.60%-0.30 %-0.60 %

0.04%

-0.19 %

0.00%

0.18%

-0.16 %

Performance SummaryTotal Surplus Cash X District Attribution1 Quarter Ending March 31, 2015

_________________________“Other” includes the effects of all other factors on the Fund’s relative return, including rebalancing and other trading activity.

16


0.00% 4.00% 8.00% 12.00%-4.00 %

Total Fund


Total Value Added

4.69%

5.73%

-1.04 %


-1.36 % -1.02 % -0.68 % -0.34 % 0.00%

Other

Manager Value Added

Asset Allocation

-0.04 %

-0.98 %

-0.02 %

Total Asset Allocation:-0.02 %


0.00% 5.00% 10.00%-5.00 %-10.00 %






We

igh

t

(%)

-2.86 %

-0.25 %

3.90%

-1.10 %

0.32%


0.00% 0.20% 0.40%-0.20 %-0.40 %

-0.01 %

0.04%

-0.19 %

0.13%

0.01%


Manager Value Added

0.00% 0.50%-0.50 %-1.00 %

-0.08 %

-0.35 %

-0.03 %

0.12%

-0.64 %

Performance SummaryTotal Surplus Cash X District Attribution1 Year Ending March 31, 2015


17


0.00% 3.00% 6.00% 9.00% 12.00%

Total Fund


Total Value Added

6.61%

6.46%

0.14%

Total Value Added:0.14%

0.00% 0.08% 0.16% 0.24%-0.08 %

Other

Manager Value Added

Asset Allocation

-0.01 %

0.02%

0.14%



0.00% 2.00% 4.00%-2.00 %






We

igh

t

(%)

-1.08 %

-0.71 %

1.32%

-0.56 %

1.03%


0.00% 0.20%-0.20 %

-0.01 %

0.05%

-0.07 %

0.05%

0.11%

Total Manager Value Added:0.02%

Manager Value Added

0.00% 0.20% 0.40%-0.20 %

0.04%

0.18%

-0.04 %

-0.07 %

-0.08 %

Performance SummaryTotal Surplus Cash X District AttributionSince Inception


18

Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Total Surplus Cash X District 664,173,490 100.0 1.6 1.6 4.7 6.3 6.0 5.7 6.6 2y 5m

Surplus Cash Total Benchmark 1.7 1.7 5.7 6.2 6.1 5.2 6.5

Pre-Pavilion Surplus Cash Total Benchmark 1.0 1.0 5.0 4.4 5.0 4.7 4.3

Total Surplus Cash X District X Privates 639,971,666 96.4 1.6 1.6 4.4 6.2 6.0 5.7 6.5 2y 5m

Surplus Cash Total Benchmark x Privates 1.7 1.7 5.7 6.2 6.1 5.2 6.5

Total Equity Composite 263,559,346 39.7 2.4 2.4 5.8 13.4 11.6 6.3 15.8 2y 5m

Total Equity Benchmark - Surplus 2.4 2.4 7.2 14.1 12.4 6.6 16.1

Domestic Equity Composite 174,073,303 26.2 1.1 1.1 8.2 16.4 13.4 7.2 19.6 2y 5m

Domestic Equity Benchmark - Surplus 1.8 1.8 11.5 17.3 14.3 7.5 20.1

Large Cap Equity Composite 142,732,517 21.5 0.8 0.8 10.8 17.1 13.8 7.3 20.5 2y 5m

Large Cap Equity Benchmark 1.2 1.2 12.7 17.1 14.2 7.4 19.9

Small Cap Equity Composite 31,340,786 4.7 2.5 2.5 0.6 N/A N/A N/A 16.6 2y 5m

Small Cap Equity Benchmark 4.3 4.3 8.2 16.3 14.6 8.8 20.9

International Equity Composite 89,486,043 13.5 5.5 5.5 0.4 N/A N/A N/A 7.6 2y 5m

MSCI AC World ex USA (Net) 3.5 3.5 -1.0 6.4 4.8 5.5 8.2

Performance SummaryComposite Asset Allocation & PerformanceAs of March 31, 2015

___________________________Returns are expressed as percentages. Returns for periods greater than one year are annualized.Peer group percentile ranks are shown in parentheses.

19


Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Total Fixed Income Composite 275,184,131 41.4 1.0 1.0 3.8 2.7 3.7 4.7 2.1 2y 5m

Total Fixed Income Benchmark - Surplus 1.4 1.4 4.8 2.6 3.6 4.4 2.1

Short Duration Fixed Income Composite 79,661,358 12.0 0.6 0.6 0.9 1.3 2.5 3.9 0.7 2y 5m

Short Duration Fixed Income Benchmark - Surplus 0.6 0.6 1.1 1.4 2.5 3.8 0.9

Market Duration Fixed Income Composite 195,522,773 29.4 1.1 1.1 4.8 4.0 5.4 N/A 2.7 2y 5m

Barclays U.S. Aggregate 1.6 1.6 5.7 3.1 4.4 4.9 2.2

Total Alternatives Composite 125,430,013 18.9 2.1 2.1 5.7 N/A N/A N/A 6.5 1y 11m

Total Alternatives Benchmark - Surplus 1.9 1.9 6.3 N/A N/A N/A 6.0

Real Estate Composite 24,201,824 3.6 0.0 0.0 17.5 N/A N/A N/A 13.4 1y 7m

NCREIF Property Index 0.0 0.0 8.8 10.2 12.0 8.0 9.6

Hedge Fund Composite 101,228,189 15.2 2.6 2.6 3.8 N/A N/A N/A 5.6 1y 11m

HFRI Fund of Funds Composite Index 2.5 2.5 5.4 5.4 3.5 3.2 5.5


20

Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Large-Cap Equity

Vanguard S&P 500 Index 86,767,706 13.1 0.9 (54) 0.9 (54) 12.7 (24) 16.1 (26) 14.4 (19) 8.0 (24) 19.6 (28) 2y 5m

S&P 500 1.0 (53) 1.0 (53) 12.7 (23) 16.1 (26) 14.5 (19) 8.0 (25) 19.6 (28)

IM U.S. Large Cap Core Equity 1.0 1.0 10.6 15.0 13.0 7.3 18.6

Sands Large Cap Growth (Touchstone) 28,015,956 4.2 0.3 (99) 0.3 (99) 8.1 (95) 15.3 (49) 18.9 (1) 11.3 (3) 22.0 (26) 2y 5m

Russell 1000 Growth Index 3.8 (39) 3.8 (39) 16.1 (32) 16.3 (28) 15.6 (17) 9.4 (26) 21.2 (38)

IM U.S. Large Cap Growth Equity 3.4 3.4 14.6 15.1 14.0 8.5 20.7

Barrow Hanley Large Cap Value 27,948,855 4.2 0.5 (29) 0.5 (29) 9.4 (28) 16.7 (13) 13.5 (18) 7.2 (26) 9.4 (2) 14y 8m

Russell 1000 Value Index -0.7 (75) -0.7 (75) 9.3 (28) 16.4 (15) 13.8 (13) 7.2 (27) 6.9 (41)

IM U.S. Large Cap Value Equity -0.2 -0.2 8.1 15.1 12.1 6.5 6.7

Small-Cap Equity

Cortina Small Cap Growth 14,362,350 2.2 0.8 (100) 0.8 (100) -8.4 (99) 7.7 (94) 13.1 (80) 9.1 (33) 12.6 (96) 2y 5m


IM U.S. Small Cap Growth Equity 5.2 5.2 5.5 15.8 15.2 8.4 21.2

Wellington Small Cap Value 16,978,436 2.6 4.0 (15) 4.0 (15) 9.6 (2) 16.2 (18) 14.8 (11) 10.6 (1) 20.1 (29) 2y 5m

Russell 2000 Value Index 2.0 (59) 2.0 (59) 4.4 (51) 14.8 (42) 12.5 (62) 7.5 (49) 18.1 (64)

IM U.S. Small Cap Value Equity 2.3 2.3 4.5 14.4 13.1 7.5 18.9

International Equity

Walter Scott Int'l (Dreyfus) 44,842,866 6.8 3.7 (58) 3.7 (58) 1.9 (27) 5.2 (68) 5.3 (54) N/A 5.7 (71) 2y 5m

MSCI AC World ex USA (Net) 3.5 (61) 3.5 (61) -1.0 (48) 6.4 (59) 4.8 (62) 5.5 (55) 8.2 (59)

IM International Equity 4.2 4.2 -1.2 7.2 5.6 5.7 9.1

Northern Cross Int'l (Harbor) 44,643,177 6.7 5.8 (21) 5.8 (21) -2.4 (63) 6.8 (55) 6.6 (34) 7.9 (19) 9.1 (50) 2y 5m



Performance SummaryManager Asset Allocation & PerformanceAs of March 31, 2015


21


Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Short Duration Fixed Income

Barrow Hanley Short Fixed 79,568,288 12.0 0.6 (41) 0.6 (41) 0.9 (38) 0.8 (70) 1.2 (75) 2.9 (39) 5.1 (12) 24y

Barclays 1-3 Year Gov/Credit 0.6 (40) 0.6 (40) 1.1 (28) 1.0 (63) 1.4 (66) 2.9 (38) 4.6 (17)

IM U.S. Short Term Investment Grade 0.5 0.5 0.7 1.2 1.7 2.6 4.2

Cash Composite 93,070 0.0 0.2 0.2 0.3 N/A N/A N/A -0.3 2y 5m

90 Day U.S. Treasury Bill 0.0 0.0 0.0 0.1 0.1 1.5 0.1

Market Duration Fixed Income

Dodge & Cox Fixed 98,083,387 14.8 1.5 (71) 1.5 (71) 5.0 (52) 4.2 (40) 5.0 (55) 5.5 (45) 3.2 (28) 2y 5m

Barclays U.S. Aggregate 1.6 (60) 1.6 (60) 5.7 (28) 3.1 (85) 4.4 (79) 4.9 (66) 2.2 (70)

IM U.S. Broad Market Core+ Fixed Income 1.7 1.7 5.1 4.0 5.1 5.3 2.8

MetWest Fixed 97,439,386 14.7 1.3 (87) 1.3 (87) 5.1 (50) 4.4 (32) 5.8 (21) 6.5 (5) 2.4 (66) 2y 5m



Real Estate

Oaktree Real Estate Opportunities Fund VI 13,750,371 2.1 0.0 0.0 16.5 N/A N/A N/A 11.5 1y 7m


Walton Street Real Estate Fund VII, L.P. 10,451,453 1.6 0.0 0.0 19.3 N/A N/A N/A 25.2 1y 5m


Hedge Funds

Hedge Fund Composite 101,228,189 15.2 2.6 2.6 3.8 N/A N/A N/A 5.6 1y 11m


Total Plan

Total Surplus Cash X District 664,173,490 100.0 1.6 1.6 4.7 6.3 6.0 5.7 6.6 2y 5m

Total Surplus Cash Benchmark 1.7 1.7 5.7 6.2 6.1 5.2 6.5

Pre-Pavilion Total Surplus Cash Benchmark 1.0 1.0 5.0 4.4 5.0 4.7 4.3


22

Surplus Cash - Asset ClassDiversification

23

March 31, 2015 : $664,173,490

Target Allocation Actual Allocation Allocation Differences

0.0% 6.0% 12.0% 18.0% 24.0% 30.0% 36.0%-6.0 %-12.0 %

Total Alternatives Composite$125,430,013

Market Duration Fixed Income Composite$195,522,773

Short Duration Fixed Income Composite$79,661,358

International Equity Composite$89,486,043

Domestic Equity Composite$174,073,303

20.0%

30.0%

10.0%

15.0%

25.0%

18.9%

29.4%

12.0%

13.5%

26.2%

-1.1 %

-0.6 %

2.0%

-1.5 %

1.2%

Asset Class DiversificationTotal Surplus Cash X District vs. Surplus Cash Target AllocationAs of March 31, 2015

24

Manager Asset Class/Type

Total Assets

($, mil.)

Percent of

Total

Target

Allocation

Weighting

Relative to

Target

Target

Range

Large-Cap Domestic Equity $142.7 21.4% 20.0% + 1.4%

Vanguard S&P 500 Index Large-Cap Index $ 86.8 13.1% 10.0% + 3.1%

Sands Large-Cap Growth $ 28.0 4.2% 5.0% - 0.8%

Barrow Hanley Large-Cap Value $ 27.9 4.2% 5.0% - 0.8%

Small-Cap Domestic Equity $ 31.3 4.7% 5.0% - 0.3%

Cortina Small-Cap Growth $ 14.4 2.2% 2.5% - 0.3%

Wellington Small-Cap Value $ 17.0 2.6% 2.5% + 0.1%

International Equity $ 89.5 13.5% 15.0% - 1.5% 10-20%

Walter Scott Developed and Emerging $ 44.8 6.8% 7.5% - 0.7%

Harbor Developed and Emerging $ 44.6 6.7% 7.5% - 0.8%

Short-Duration Fixed Income $ 79.7 12.0% 10.0% + 2.0% 8-12%

20-30%

Asset Class DiversificationSurplus Cash Investment Program StructureAs of March 31, 2015

Short-Duration Fixed Income $ 79.7 12.0% 10.0% + 2.0% 8-12%

Barrow Hanley Short Duration $ 79.6 12.0% 10.0% + 2.0%

Cash Money Market $ 0.1 0.0% 0.0% + 0.0%

Market-Duration Fixed Income $195.5 29.4% 30.0% - 0.6% 25-35%

Dodge & Cox Market Duration $ 98.1 14.8% 15.0% - 0.2%

MetWest Market Duration $ 97.4 14.7% 15.0% - 0.3%

Alternatives $125.4 18.9% 20.0% - 1.1% 17-23%

Oaktree RE Opportunities Real Estate $ 13.8 2.1% 2.5% - 0.4%

Walton Street Real Estate $ 10.5 1.6% 2.5% - 0.9%

Direct Hedge Fund Composite Hedge Fund $101.2 15.2% 15.0% + 0.2%

Total (X District) $664.2 100.0%

District Assets Short Duration $ 19.4

Total Surplus Cash $683.5

______________________________*Totals may not add due to rounding.

25

Portfolio Characteristics

Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 86,708 80,707

Median Mkt. Cap ($M) 15,012 1,444

Price/Earnings ratio 19.6 17.8

Price/Book ratio 2.9 2.7

5 Yr. EPS Growth Rate (%) 13.2 13.2

Current Yield (%) 1.9 2.3

Debt to Equity 0.9 1.2

Number of Stocks 798 8,550

Beta (5 Years, Monthly) 0.89 1.00

Consistency (5 Years, Monthly) 51.67 1.00

Sharpe Ratio (5 Years, Monthly) 0.88 0.72

Information Ratio (5 Years, Monthly) 0.33 -

Up Market Capture (5 Years, Monthly) 96.51 -

Down Market Capture (5 Years, Monthly) 83.48 -

Top Ten Equity Holdings

PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Apple Inc 1.3 1.7 -0.4 13.2

Novo Nordisk A/S 1.0 0.3 0.7 28.3

Fanuc Corp 1.0 0.1 0.9 32.4

Microsoft Corp 0.9 0.7 0.2 -11.9

Novartis AG 0.8 0.5 0.3 9.4

Roche Holding AG 0.8 0.5 0.4 4.8

Wells Fargo & Co 0.8 0.6 0.2 -0.1

SAP AG Systeme Anwendungen 0.8 0.2 0.6 2.9

Johnson & Johnson 0.8 0.7 0.1 -3.1

Facebook Inc 0.8 0.4 0.4 5.4

% of Portfolio 8.9 5.5

Distribution of Market Capitalization (%)

Total Equity Composite MSCI AC World IMI

0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

31.730.5

23.2

14.6

0.0

34.4

40.5

11.8 11.9

1.3

Sector Weights (%)


0.0 5.0 10.0 15.0 20.0 25.0 30.0

Other

Cash

Utilities

Telecommunication Services

Materials

Information Technology

Industrials

Health Care

Financials

Energy

Consumer Staples

Consumer Discretionary

0.0

1.3

1.9

1.9

4.7

15.5

12.1

17.2

15.8

6.8

8.9

13.9

0.0

0.0

3.2

3.3

5.7

13.9

11.4

11.9

21.7

7.0

9.0

13.0

Equity Portfolio - CharacteristicsSurplus Cash Equity Composite vs. MSCI AC World IMIAs of March 31, 2015

26

Total EquityComposite MSCI AC World IMI

Australia 0.7 2.5

Hong Kong 2.2 1.9

Japan 4.9 8.0

New Zealand 0.0 0.1

Singapore 0.6 0.6

Pacific 8.4 13.1

Austria 0.1 0.1

Belgium 0.4 0.5

Finland 0.3 0.3

France 5.3 2.9

Germany 2.9 3.1

Ireland 0.7 0.5

Italy 0.1 0.9

Netherlands 0.6 1.1

Portugal 0.0 0.1

Spain 1.0 1.2

EMU 11.5 10.6

Denmark 1.0 0.6

Norway 0.0 0.3

Sweden 1.3 1.1

Switzerland 5.0 3.2

United Kingdom 6.7 6.9

Europe ex EMU 14.1 12.1

Canada 0.4 3.3

United States 61.7 51.0

Israel 0.5 0.2

Middle East 0.5 0.2

Developed Markets 96.6 90.4


Brazil 0.2 0.7

Cayman Islands 0.0 0.0

Chile 0.0 0.1

Colombia 0.1 0.1

Mexico 0.1 0.5

Peru 0.0 0.0

Virgin Islands 0.0 0.0

EM Latin America 0.4 1.4

China 1.0 1.5

India 0.0 0.8

Indonesia 0.0 0.3

Korea 0.0 1.6

Malaysia 0.1 0.4

Philippines 0.0 0.1

Taiwan 0.4 1.4

Thailand 0.0 0.3

EM Asia 1.5 6.4

Czech Republic 0.0 0.0

Egypt 0.0 0.0

Greece 0.1 0.0

Hungary 0.0 0.0

Poland 0.0 0.2

Qatar 0.0 0.1

Russia 0.0 0.3

South Africa 0.0 0.8

Turkey 0.0 0.2

United Arab Emirates 0.0 0.1

EM Europe + Middle East + Africa 0.1 1.7

Emerging Markets 1.9 9.5

Frontier Markets 0.0 0.0

Cash 1.3 0.0

Other 0.1 0.1

Total 100.0 100.0

Equity Portfolio - Country/Region AllocationSurplus Cash Equity Composite vs. MSCI AC World IMIAs of March 31, 2015

27


Maturity Distribution (%)

Credit Quality Distribution (%)

Risk Characteristics - 5 Years

Sector Distribution (%)

Portfolio Benchmark

Effective Duration 3.8 3.9

Avg. Maturity 5.9 5.2

Avg. Quality AA AA+

Yield To Maturity (%) 2.1 1.5

Total Fixed Income Composite Total Fixed Income Bmk - Surplus

0.0

50.0

100.0

150.0

AAA AA ABBB BB B

82.0

4.3 6.6 7.10.0 0.0

45.5

5.2

22.0 21.3

5.01.0

ConsistencySharpeRatio

InformationRatio

UpMarket

Capture

DownMarket

Capture

Total Fixed Income Composite 53.3 2.0 0.2 93.3 67.8

Total Fixed Income Bmk - Surplus 0.0 1.7 N/A 100.0 100.0

90 Day U.S. Treasury Bill 28.3 N/A -1.7 1.2 -1.2


0.0

25.0

50.0

75.0

100.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

0.0

56.5

13.5

21.7

1.86.54.5

39.9

16.2

29.1

3.17.2


0.0

50.0

100.0

-50.0

Treasu

ries

TIPS

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

Oth

er

CMBS

58.4

0.07.5 11.3

0.0

16.1

0.3 3.9 1.4 0.0 0.0 0.0 1.1

12.6

1.7 2.2

33.0

5.6

25.4

7.9 4.90.0 2.0

-2.2

4.8 2.1

Fixed Income Portfolio - CharacteristicsSurplus Cash Fixed Income Composite vs. Total Fixed Income Bmk - SurplusAs of March 31, 2015

28

Performance SummarySurplus Cash Private Real Estate InvestmentAs of March 31, 2015 ($ in Millions)

Partnership

Vintage

Year Fund Type

Committed

Capital

Paid-in

Capital

Outstanding

Commitment

Market

Value1 Distributions

Total

Value

Net

IRR2 TV / PI D / PI

Oaktree RE Opportunities VI 2012 Private RE $14.0 $12.9 $2.1 $13.8 $1.0 $14.7 17.0% 1.1 0.1

Walton Street RE Fund VII 2012 Private RE $14.0 $9.2 $4.8 $10.5 $0.3 $10.7 32.1% 1.2 0.0

1 If a market value has not yet been released for a particular fund, the previous quarter’s value is adjusted according to subsequent contributions and distributions.2 Net IRR is through the previous quarter end.

29

Cash Balance Plan -Performance Summary

30

Total Cash Balance Plan Total Cash Balance Plan Benchmark Pre-Pavilion Cash Balance Plan Total Benchmark

0.0

3.0

6.0

9.0

12.0

15.0

18.0

Re

turn

(%)

Quarter YearTo

Date

1Year

3Years

5Years

10Years

SinceInception

0.3 0.3

8.0

11.1

10.2

6.6

12.2

2.0 2.0

6.2

9.0 9.0

6.0

9.6

1.9 1.9

6.3

10.0

9.0

6.5

10.5

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Total Cash Balance Plan 1.9 1.9 6.3 10.0 9.0 6.5 10.5 2y 5m

Total Cash Balance Plan Benchmark 2.0 2.0 6.2 9.0 9.0 6.0 9.6

Pre-Pavilion Cash Balance Plan Total Benchmark 0.3 0.3 8.0 11.1 10.2 6.6 12.2

Performance SummaryTotal Cash Balance Plan vs. Total Cash Balance Plan Benchmark*As of March 31, 2015

_______________________________________* Returns are net of investment management fees.* Since inception returns reflect the date Pavilion's recommended portfolio was implemented (11/1/2012).

31

3 Years 5 Years

0.0

4.0

8.0

12.0

16.0

20.0

Retu

rn (%

)

0.0 3.0 6.0 9.0 12.0 15.0


Pre-Pavilion Cash Balance

Plan Total Benchmark(5.7, 11.1)

Total Cash Balance Plan Benchmark(5.2, 9.0)

Total Cash Balance Plan(5.9, 10.0)

0.0

4.0

8.0

12.0

16.0

20.0

Retu

rn (%

)

0.0 3.0 6.0 9.0 12.0 15.0


Pre-Pavilion Cash Balance

Plan Total Benchmark(7.7, 10.2)

Total Cash Balance Plan Benchmark(7.4, 9.0)

Total Cash Balance Plan(9.4, 9.0)

Performance SummaryRisk and Return Summary (Net of Fees)As of March 31, 2015

32


0.00% 1.00% 2.00% 3.00%-1.00 %

Total Fund


Total Value Added

1.94%

1.95%

-0.02 %


0.00% 0.03% 0.06%-0.03 %-0.06 %-0.09 %

Other

Manager Value Added

Asset Allocation

0.01%

0.01%

-0.04 %

Total Asset Allocation:-0.04 %


0.00% 5.00% 10.00%-5.00 %-10.00 %

Alternatives Composite





We

igh

t

(%)

3.31%

-0.17 %

-3.73 %

-0.79 %

1.37%


0.00% 0.04% 0.08%-0.04 %-0.08 %

-0.01 %

-0.01 %

0.03%

-0.02 %

-0.03 %


Manager Value Added

0.00% 0.30% 0.60%-0.30 %-0.60 %

0.12%

-0.07 %

-0.01 %

0.22%

-0.24 %

Performance SummaryTotal Cash Balance Plan Attribution1 Quarter Ending March 31, 2015


33


0.00% 3.00% 6.00% 9.00%

Total Fund


Total Value Added

6.30%

6.24%

0.06%


0.00% 0.06% 0.12% 0.18%-0.06 %-0.12 %

Other

Manager Value Added

Asset Allocation

0.03%

-0.04 %

0.08%



0.00% 3.00%-3.00 %-6.00 %






We

igh

t

(%)

1.18%

0.19%

-1.93 %

-0.35 %

0.91%


0.00% 0.05% 0.10% 0.15%-0.05 %-0.10 %

0.00%

-0.02 %

0.06%

0.03%

0.00%


Manager Value Added

0.00% 2.00%-2.00 %

0.92%

-0.19 %

-0.03 %

0.16%

-0.90 %

Performance SummaryTotal Cash Balance Plan Attribution1 Year Ending March 31, 2015


34


0.00% 4.00% 8.00% 12.00% 16.00%

Total Fund


Total Value Added

10.51%

9.58%

0.93%


0.00% 0.30% 0.60% 0.90% 1.20%

Other

Manager Value Added

Asset Allocation

0.08%

0.67%

0.18%



0.00% 2.00% 4.00%-2.00 %-4.00 %






We

igh

t

(%)

-1.02 %

-0.46 %

-0.51 %

0.08%

1.90%


0.00% 0.20% 0.40%-0.20 %

0.06%

0.03%

-0.07 %

0.00%

0.16%


Manager Value Added

0.00% 0.40% 0.80% 1.20%-0.40 %-0.80 %

0.56%

0.27%

-0.02 %

-0.14 %

-0.02 %

Performance SummaryTotal Cash Balance Plan AttributionSince Inception


35

Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Total Cash Balance Plan 218,322,646 100.0 1.9 1.9 6.3 10.0 9.0 6.5 10.5 2y 5m


Pre-Pavilion Total Cash Balance Plan Benchmark 0.3 0.3 8.0 11.1 10.2 6.6 12.2

Total Cash Balance Plan X Private Structures 203,804,044 93.3 2.1 2.1 5.7 9.8 8.9 6.5 10.3 2y 5m

Cash Balance Plan Total X Privates Benchmark 2.1 2.1 6.1 9.0 9.0 6.0 9.5

Total Equity Composite 112,103,289 51.3 2.3 2.3 5.9 14.1 11.6 6.3 15.5 2y 5m

Total Equity Benchmark 2.4 2.4 7.3 13.9 12.2 6.5 15.8

Domestic Equity Composite 73,836,967 33.8 1.0 1.0 9.2 17.5 13.6 7.2 19.9 2y 5m

Domestic Equity Benchmark 1.7 1.7 12.1 17.3 14.3 7.4 20.1

Large Cap Equity Composite 63,179,908 28.9 0.8 0.8 10.8 18.0 13.9 7.4 20.5 2y 5m

Large Cap Equity Benchmark 1.2 1.2 12.7 17.1 14.2 7.4 19.9

Small Cap Equity Composite 10,657,059 4.9 2.5 2.5 0.7 N/A N/A N/A 16.5 2y 5m

Small Cap Equity Benchmark 4.3 4.3 8.2 16.3 14.6 8.8 20.9

International Equity Composite 38,266,322 17.5 4.8 4.8 0.0 N/A N/A N/A 7.6 2y 5m

MSCI AC World ex USA (Net) 3.5 3.5 -1.0 6.4 4.8 5.5 8.2



36


Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Total Fixed Income Composite 63,197,554 28.9 1.2 1.2 3.9 3.4 4.9 5.7 2.6 2y 5m

Total Fixed Income Benchmark 1.3 1.3 4.4 2.8 4.2 4.8 1.9

Short Duration Fixed Income Composite 9,200,746 4.2 0.5 0.5 0.8 0.6 N/A N/A 0.7 2y 5m

Short Duration Fixed Income Benchmark 0.6 0.6 1.1 0.7 0.5 1.7 0.9

Market Duration Fixed Income Composite 53,996,808 24.7 1.3 1.3 5.0 4.2 5.2 5.8 3.3 2y 5m

Barclays U.S. Aggregate 1.6 1.6 5.7 3.1 4.4 4.9 2.2

Total Alternatives Composite 43,021,803 19.7 2.3 2.3 12.4 N/A N/A N/A 11.6 2y 5m

Total Alternatives Benchmark 1.7 1.7 6.5 N/A N/A N/A 7.9

Hedge Fund of Fund Composite 28,503,201 13.1 3.4 3.4 10.0 N/A N/A N/A 11.1 2y 5m


Real Estate Composite 14,518,602 6.7 0.0 0.0 18.2 N/A N/A N/A 12.4 2y 3m



37

Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Large-Cap Equity

Vanguard Institutional Index Fund 32,535,903 14.9 0.9 (54) 0.9 (54) 12.7 (24) 16.1 (26) 14.4 (19) 8.0 (24) 19.6 (28) 2y 5m

S&P 500 1.0 (53) 1.0 (53) 12.7 (23) 16.1 (26) 14.5 (19) 8.0 (25) 19.6 (28)

IM U.S. Large Cap Core Equity 1.0 1.0 10.6 15.0 13.0 7.3 18.6

Sands Large Cap Growth (Touchstone) 15,021,097 6.9 0.3 (99) 0.3 (99) 8.1 (95) 15.3 (49) 18.9 (1) 11.3 (3) 22.0 (26) 2y 5m


IM U.S. Large Cap Growth Equity 3.4 3.4 14.6 15.1 14.0 8.5 20.7

Barrow Hanley Large Cap Value 15,622,908 7.2 0.6 (26) 0.6 (26) 9.7 (22) 16.9 (10) 13.7 (15) 7.3 (24) 20.2 (15) 2y 5m

Russell 1000 Value Index -0.7 (75) -0.7 (75) 9.3 (28) 16.4 (15) 13.8 (13) 7.2 (27) 19.0 (31)

IM U.S. Large Cap Value Equity -0.2 -0.2 8.1 15.1 12.1 6.5 18.1

Small-Cap Equity

Cortina Small Cap Growth 4,910,975 2.2 0.8 (100) 0.8 (100) -8.4 (99) 7.7 (94) 13.1 (80) 9.1 (33) 12.6 (96) 2y 5m


IM U.S. Small Cap Growth Equity 5.2 5.2 5.5 15.8 15.2 8.4 21.2

Wellington Small Cap Value 5,746,084 2.6 4.1 (14) 4.1 (14) 10.0 (1) 16.2 (18) 14.8 (11) 10.6 (1) 20.1 (29) 2y 5m

Russell 2000 Value Index 2.0 (59) 2.0 (59) 4.4 (51) 14.8 (42) 12.5 (62) 7.5 (49) 18.1 (64)

IM U.S. Small Cap Value Equity 2.3 2.3 4.5 14.4 13.1 7.5 18.9

International Equity

Walter Scott Int'l (Dreyfus) 19,014,011 8.7 3.7 (58) 3.7 (58) 1.9 (27) 5.2 (68) 5.3 (54) N/A 5.7 (71) 2y 5m



Northern Cross Int'l (Harbor) 19,252,311 8.8 5.8 (21) 5.8 (21) -2.4 (63) 6.8 (55) 6.6 (34) 7.9 (19) 9.1 (50) 2y 5m





38


Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

Years10

YearsSince

InceptionInception

Period

Short Duration Fixed Income

Barrow Hanley Short Fixed 9,043,202 4.1 0.5 (52) 0.5 (52) 0.8 (47) 0.8 (70) 1.2 (75) 2.9 (39) 0.7 (54) 2y 5m

Barclays 1-3 Year Gov/Credit 0.6 (40) 0.6 (40) 1.1 (28) 1.0 (63) 1.4 (66) 2.9 (38) 0.9 (42)

IM U.S. Short Term Investment Grade 0.5 0.5 0.7 1.2 1.7 2.6 0.8

Cash Composite 157,544 0.1 0.0 0.0 1.9 0.8 N/A N/A 1.0 2y 5m

90 Day U.S. Treasury Bill 0.0 0.0 0.0 0.1 0.1 1.5 0.1

Market Duration Fixed Income

Dodge & Cox Income Fund 26,921,925 12.3 1.3 (86) 1.3 (86) 4.4 (65) 4.1 (44) 5.0 (57) 5.5 (46) 7.2 (20) 26y 3m



Met West Total Return Fund I 27,074,883 12.4 1.4 (78) 1.4 (78) 5.5 (36) 5.4 (10) 6.4 (5) 6.8 (2) 3.6 (19) 2y 5m



Hedge Fund of Funds

Lighthouse Diversified 15,307,291 7.0 2.9 2.9 7.7 8.1 6.4 5.3 9.6 2y 5m


Pointer Offshore LTD 13,195,910 6.0 4.0 4.0 12.7 10.3 9.8 9.5 13.1 2y 3m


Real Estate

Oaktree RE Opportunities Fund V 8,250,223 3.8 0.0 0.0 17.6 N/A N/A N/A 11.9 2y 2m


Walton Street Real Estate Fund VII, L.P. 6,268,379 2.9 0.0 0.0 19.3 N/A N/A N/A 20.5 1y 9m


Total Plan

Total Cash Balance Plan 218,322,646 100.0 1.9 1.9 6.3 10.0 9.0 6.5 10.5 2y 5m


Pre-Pavilion Total Cash Balance Plan Benchmark 0.3 0.3 8.0 11.1 10.2 6.6 12.2


39

Cash Balance Plan - AssetClass Diversification

40

March 31, 2015 : $218,322,646

Target Allocation Actual Allocation Allocation Differences

0.0% 6.0% 12.0% 18.0% 24.0% 30.0% 36.0% 42.0%-6.0 %-12.0 %

Alternatives Composite$43,021,803

Market Duration Fixed Income Composite$53,996,808

Short Duration Fixed Income Composite$9,200,746

International Equity Composite$38,266,322

Domestic Equity Composite$73,836,967

20.0%

25.0%

5.0%

18.0%

32.0%

19.7%

24.7%

4.2%

17.5%

33.8%

-0.3 %

-0.3 %

-0.8 %

-0.5 %

1.8%

Asset Class DiversificationTotal Cash Balance Plan vs. Cash Balance Plan Target AllocationAs of March 31, 2015

41


Total Assets

($, mil.)

Large-Cap Domestic Equity $ 63.2

Vanguard S&P 500 Index Large-Cap Index $ 32.5

Sands Large-Cap Growth $ 15.0

Barrow Hanley Large-Cap Value $ 15.6

Asset Class DiversificationCash Balance Plan Investment Program StructureAs of March 31, 2015

Barrow Hanley Large-Cap Value $ 15.6

Small-Cap Domestic Equity $ 10.7

Cortina Small-Cap Growth $ 4.9

Wellington Small-Cap Value $ 5.7

International Equity $ 38.3

Walter Scott Developed and Emerging $ 19.0

Harbor Developed and Emerging $ 19.3

Short-Duration Fixed Income $ 9.2

Barrow Hanley Short Duration $ 9.0

Cash Money Market $ 0.2

Market-Duration Fixed Income $ 54.0

Dodge & Cox Market Duration $ 26.9

MetWest Market Duration $ 27.1MetWest Market Duration $ 27.1

Alternatives $ 43.0

Lighthouse HFOF $ 15.3

Pointer HFOF $ 13.2

Oaktree RE Opportunities Real Estate $ 8.3

Walton Street Real Estate $ 6.3

Total $218.3

______________________________*Totals may not add due to rounding.

Total Assets

($, mil.)

Percent of

Total

Target

Allocation1

Weighting

Relative to

Target

Target

Range1

28.9% 27.0% + 1.9%

14.9% 13.5% + 1.4%

6.9% 6.8% + 0.1%

7.2% 6.8% + 0.4% 27-37%7.2% 6.8% + 0.4%

4.9% 5.0% - 0.1%

2.2% 2.5% - 0.3%

2.6% 2.5% + 0.1%

17.5% 18.0% - 0.5% 15-21%

8.7% 9.0% - 0.3%

8.8% 9.0% - 0.2%

4.2% 5.0% - 0.8% 0-8%

4.1% 5.0% - 0.9%

0.1% 0.0% + 0.1%

24.7% 25.0% - 0.3% 20-30%

12.3% 12.5% - 0.2%

12.4% 12.5% - 0.1%

27-37%

12.4% 12.5% - 0.1%

19.7% 20.0% - 0.3% 17-23%

7.0% 5.0% + 2.0%

6.0% 5.0% + 1.0%

3.8% 5.0% - 1.2%

2.9% 5.0% - 2.1%

$218.3 100.0%

42


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 87,358 80,707

Median Mkt. Cap ($M) 15,012 1,444














PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Apple Inc 1.2 1.7 -0.5 13.2

Novo Nordisk A/S 1.0 0.3 0.7 28.3

Fanuc Corp 1.0 0.1 0.9 32.4

Wells Fargo & Co 0.9 0.6 0.3 -0.1

Biogen Inc 0.9 0.2 0.7 24.4

Regeneron Pharmaceuticals Inc 0.9 0.1 0.8 10.0

Unitedhealth Group Inc 0.9 0.3 0.6 17.4


Facebook Inc 0.9 0.4 0.5 5.4

Novartis AG 0.8 0.5 0.3 9.4




0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

31.730.5

23.2

14.6

0.0

35.1

42.3

11.79.6

1.3

Sector Weights (%)


0.0 5.0 10.0 15.0 20.0 25.0 30.0

Other

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


0.0

1.3

1.8

2.0

4.6

15.8

11.6

17.7

15.8

6.9

8.6

13.9

0.0

0.0

3.2

3.3

5.7

13.9

11.4

11.9

21.7

7.0

9.0

13.0

Equity Portfolio - CharacteristicsCash Balance Plan Equity Composite vs. MSCI AC World IMIAs of March 31, 2015

43


Australia 0.7 2.5

Hong Kong 2.2 1.9

Japan 4.9 8.0

New Zealand 0.0 0.1

Singapore 0.6 0.6

Pacific 8.4 13.1

Austria 0.2 0.1

Belgium 0.4 0.5

Finland 0.3 0.3

France 5.4 2.9

Germany 2.9 3.1

Ireland 0.7 0.5

Italy 0.1 0.9

Netherlands 0.7 1.1

Portugal 0.0 0.1

Spain 1.0 1.2

EMU 11.7 10.6

Denmark 1.0 0.6

Norway 0.0 0.3

Sweden 1.3 1.1

Switzerland 5.0 3.2



Canada 0.4 3.3


Israel 0.5 0.2

Middle East 0.5 0.2



Brazil 0.2 0.7


Chile 0.0 0.1

Colombia 0.1 0.1

Mexico 0.1 0.5

Peru 0.0 0.0



China 1.2 1.5

India 0.0 0.8

Indonesia 0.0 0.3

Korea 0.0 1.6

Malaysia 0.1 0.4

Philippines 0.0 0.1

Taiwan 0.4 1.4

Thailand 0.0 0.3

EM Asia 1.7 6.4


Egypt 0.0 0.0

Greece 0.0 0.0

Hungary 0.0 0.0

Poland 0.0 0.2

Qatar 0.0 0.1

Russia 0.0 0.3


Turkey 0.0 0.2





Cash 1.3 0.0

Other 0.1 0.1

Total 100.0 100.0

Equity Portfolio - Country/Region AllocationCash Balance Plan Equity Composite vs. MSCI AC World IMIAs of March 31, 2015

44




Risk Characteristics - 5 Years


Portfolio Benchmark



Avg. Quality AA- AA+


Total Fixed Income Composite Total Fixed Income Benchmark

0.0

25.0

50.0

75.0

100.0

AAA AA ABBB BB B

Below

B

Not Rat

ed

78.4

4.48.3 8.9

0.0 0.0 0.0 0.0

56.8

3.3

12.5

19.6

4.31.3 2.1 0.1

ConsistencySharpeRatio

InformationRatio

UpMarket

Capture

DownMarket

Capture

Total Fixed Income Composite 58.3 2.2 0.4 99.5 59.3

Total Fixed Income Benchmark 0.0 1.7 N/A 100.0 100.0

90 Day U.S. Treasury Bill 30.0 N/A -1.7 1.0 -1.0


0.0

20.0

40.0

60.0

80.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

0.0

45.6

16.9

27.1

2.3

8.14.1

28.5

23.1

30.3

4.5

9.5


0.0

20.0

40.0

60.0

80.0

Treasu

ries

TIPS

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

CMBS

50.9

0.0

6.4

14.1

0.0

20.2

0.44.9

1.7 0.0 0.0 1.4

17.0

1.8 3.6

31.2

0.9

28.5

8.7

1.9 0.0 0.6 1.93.9

Fixed Income Portfolio - CharacteristicsCash Balance Plan Fixed Income Composite vs. Total Fixed Income BenchmarkAs of March 31, 2015

45

Performance SummaryCash Balance Plan Private Real Estate InvestmentAs of March 31, 2015 ($ in Millions)

Partnership

Vintage

Year Fund Type

Committed

Capital

Paid-in

Capital

Outstanding

Commitment

Market

Value1 Distributions

Total

Value

Net

IRR2 TV / PI D / PI

Oaktree RE Opportunities VI 2012 Private RE $8.4 $9.7 $1.3 $8.3 $2.8 $11.1 13.4% 1.1 0.3

Walton Street RE Fund VII 2012 Private RE $8.4 $5.5 $2.9 $6.3 $0.3 $6.6 28.2% 1.2 0.1

1 If a market value has not yet been released for a particular fund, the previous quarter’s value is adjusted according to subsequent contributions and distributions.2 Net IRR is through the previous quarter end.

46

Manager Evaluation

47

Historical Performance

Three Year Rolling Percentile Ranking Relative Performance

Historical Statistics (Apr-2010 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Vanguard S&P 500 Index 0.9 0.9 12.7 16.1 14.4 8.0 13.7 32.3 16.0 2.1 15.0 26.6 -37.0 5.5 15.8 4.9

S&P 500 1.0 1.0 12.7 16.1 14.5 8.0 13.7 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 15.8 4.9

IM U.S. Large Cap Core Equity 1.0 1.0 10.6 15.0 13.0 7.3 11.4 31.9 15.3 -0.4 13.1 26.1 -37.0 5.9 14.1 5.2

Vanguard S&P 500 Index Rank 54 54 24 26 19 24 18 42 40 24 22 48 50 55 29 54

Vanguard S&P 500 Index S&P 500

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 Cumulative Annualized Over/Under Relative Performance

Over/Under Performance

0.0

0.1

0.2

-0.1

-0.2

Re

turn

(%)

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15

ReturnStandardDeviation

ExcessReturn Alpha Beta

SharpeRatio

TrackingError

InformationRatio

DownsideRisk Consistency

InceptionDate

Vanguard S&P 500 Index 14.4 14.1 14.6 0.0 1.0 1.0 0.0 -3.2 8.1 10.0 24y 8m

S&P 500 14.5 14.1 14.7 0.0 1.0 1.0 0.0 N/A 8.1 0.0 24y 8m

90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.1 -1.0 0.0 20.0 24y 8m

Manager EvaluationVanguard S&P 500 Index vs. S&P 500As of March 31, 2015

48


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 134,167 134,167

Median Mkt. Cap ($M) 18,772 18,772






Number of Stocks 502 502




Information Ratio (5 Years, Monthly) -1.92 -




PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Apple Inc 4.0 4.0 0.0 13.2

Exxon Mobil Corp 2.0 2.0 0.0 -7.4


Johnson & Johnson 1.5 1.5 0.0 -3.1

Berkshire Hathaway Inc 1.4 1.4 0.0 -3.9

Wells Fargo & Co 1.4 1.4 0.0 -0.1

General Electric Co 1.4 1.4 0.0 -0.9

JPMorgan Chase & Co 1.2 1.2 0.0 -2.6

Procter & Gamble Co (The) 1.2 1.2 0.0 -9.4

Pfizer Inc 1.2 1.2 0.0 12.7




0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

50.2

34.1

15.2

0.4

50.2

34.1

15.2

0.4

Sector Weights (%)


0.0 5.0 10.0 15.0 20.0 25.0

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


3.0

2.3

3.2

19.7

10.4

14.9

16.2

8.0

9.7

12.6

3.0

2.3

3.2

19.7

10.4

14.9

16.2

8.0

9.7

12.6

Manager EvaluationVanguard S&P 500 Index vs. S&P 500As of March 31, 2015

49


Buy and Hold Attribution

Risk and Return (Apr - 2010 - Mar - 2015)Three Year Rolling Percentile Ranking

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Sands LCG (Touchstone) 0.3 0.3 8.1 15.3 18.9 11.3 8.4 41.3 23.8 2.3 26.3 71.1 -48.5 18.7 -5.9 N/A

Russell 1000 Growth Index 3.8 3.8 16.1 16.3 15.6 9.4 13.1 33.5 15.3 2.6 16.7 37.2 -38.4 11.8 9.1 5.3

IM U.S. Large Cap Growth Equity 3.4 3.4 14.6 15.1 14.0 8.5 10.5 33.8 15.0 -1.8 15.3 34.6 -39.7 13.7 6.7 5.7

Sands LCG (Touchstone) Rank 99 99 95 49 1 3 79 7 1 14 2 1 95 22 99 N/A

Sands LCG (Touchstone) Russell 1000 Growth Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 9.0

12.0

15.0

18.0

21.0

24.0

Re

turn

(%)

12.0 14.0 16.0 18.0 20.0Risk (Standard Deviation %)

Russell 1000 Growth Index

Sands LCG (Touchstone)


0.0 15.0 30.0-15.0-30.0

Utilities

Telecommunication ServicesMaterials


Industrials

Health CareFinancials

Energy

Consumer StaplesConsumer Discretionary

Cash

-0.1

-2.1-0.6

11.7

-12.2

5.1-2.7

4.0

-8.1

2.52.4

Allocation(Total: 0.6)

0.0 0.3 0.6 0.9-0.3-0.6

0.0

0.00.0

0.0

0.4

0.20.1

0.0

0.0

0.0-0.1

Stock(Total: -2.5)

0.0 2.0-2.0-4.0

0.0

0.0-0.2

-1.3

0.0

0.80.0

-1.5

0.0

-0.30.0

Sands LCG (Touchstone)

0.0 1.0 2.0-1.0-2.0-3.0

0.0

0.0-0.2

-1.3

0.4

1.00.1

-1.5

0.0

-0.2-0.1

Manager EvaluationSands Large Cap Growth (Touchstone) vs. Russell 1000 Growth IndexAs of March 31, 2015

Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.

50


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 71,628 130,254

Median Mkt. Cap ($M) 42,157 9,154














PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Regeneron Pharmaceuticals Inc 6.1 0.3 5.8 10.0

Biogen Inc 5.4 0.9 4.5 24.4

LinkedIn Corp 4.5 0.2 4.3 8.8

Salesforce.com Inc. 4.5 0.4 4.1 12.6

Chipotle Mexican Grill Inc 4.4 0.2 4.2 -5.0

Facebook Inc 4.3 1.5 2.8 5.4

Priceline Group Inc (The) 4.3 0.6 3.8 2.1

Baidu Inc 4.1 0.0 4.1 -8.6

Alibaba Group Holding Ltd 3.7 0.0 3.7 -19.9

Biomarin Pharmaceutical Inc 3.7 0.2 3.5 37.9



Sands Large Cap Growth (Touchstone)


0.0

20.0

40.0

60.0

80.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

44.7

31.7

20.3

3.30.0

23.8

61.6

11.6

1.9 1.1

Sector Weights (%)

Sands Large Cap Growth (Touchstone)


0.0 10.0 20.0 30.0 40.0 50.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


1.1

0.0

0.0

3.6

39.7

0.0

23.7

3.0

8.6

2.8

17.6

0.0

0.1

2.2

3.9

28.6

11.9

14.3

5.2

4.5

10.6

18.8

Manager EvaluationSands Large Cap Growth (Touchstone) vs. Russell 1000 Growth IndexAs of March 31, 2015

__________________Characteristics are as of January 31, 2015. Holdings as of March 31, 2015 unavailable at time of report production.

51




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Barrow Hanley Large Cap Value 0.5 0.5 9.4 16.7 13.5 7.2 12.8 34.7 15.3 2.3 10.8 23.7 -35.3 1.9 14.6 10.0

Russell 1000 Value Index -0.7 -0.7 9.3 16.4 13.8 7.2 13.5 32.5 17.5 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1

IM U.S. Large Cap Value Equity -0.2 -0.2 8.1 15.1 12.1 6.5 10.9 32.3 15.4 -2.3 12.7 24.4 -37.0 1.4 17.7 5.2

Barrow Hanley Large Cap Value Rank 29 29 28 13 18 26 16 28 51 14 83 57 29 45 88 11

Barrow Hanley Large Cap Value Russell 1000 Value Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 13.2

13.5

13.8

14.1

Re

turn

(%)

14.1 14.4 14.7 15.0 15.3 15.6 15.9 16.2Risk (Standard Deviation %)

Russell 1000 Value Index

Barrow Hanley Large Cap Value


0.0 10.0 20.0-10.0-20.0

Utilities



Industrials


Energy


Cash

-5.4

3.4-0.9

1.5

-0.2

9.8-3.9

-1.2

-5.2

0.31.9


0.0 0.6 1.2 1.8-0.6

0.2

0.00.0

-0.1

0.0

0.80.0

0.0

0.1

0.00.0

Stock(Total: 0.3)

0.0 0.7 1.4-0.7-1.4-2.1

-0.1

0.20.2

0.1

0.0

0.5-0.9

0.1

0.0

0.20.0

Barrow Hanley Large Cap Value

0.0 0.8 1.6 2.4-0.8-1.6-2.4

0.2

0.10.2

0.0

0.0

1.3-0.8

0.2

0.1

0.20.0

Manager EvaluationBarrow Hanley Large Cap Value vs. Russell 1000 Value IndexAs of March 31, 2015


52


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 116,818 107,001

Median Mkt. Cap ($M) 78,144 7,600














PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Unitedhealth Group Inc 4.5 1.1 3.4 17.4

Medtronic PLC 3.5 1.1 2.4 8.4

Wells Fargo & Co 3.3 2.6 0.8 -0.1

Pfizer Inc 3.1 2.2 0.9 12.7

Verizon Communications Inc 3.1 0.0 3.1 5.2

Oracle Corp 3.1 0.0 3.1 -3.8

Qualcomm Inc. 3.0 0.0 3.0 -6.2

JPMorgan Chase & Co 3.0 2.3 0.7 -2.6

American Express Co 2.9 0.0 2.9 -15.5

Teva Pharmaceutical Industries Ltd 2.9 0.0 2.9 9.0




0.0

20.0

40.0

60.0

80.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

43.5

29.8

21.1

5.6

0.0

58.0

38.4

3.10.0 0.5

Sector Weights (%)


0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


0.5

0.9

5.5

2.3

12.6

9.7

25.5

24.2

9.5

2.1

7.3

0.0

6.2

2.1

3.1

9.0

10.2

14.7

29.8

10.9

7.2

6.9

Manager EvaluationBarrow Hanley Large Cap Value vs. Russell 1000 Value IndexAs of March 31, 2015

53




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Cortina Small Cap Growth 0.8 0.8 -8.4 7.7 13.1 9.1 -8.9 49.2 6.5 2.2 36.1 50.8 -45.4 11.5 11.4 5.0

Russell 2000 Growth Index 6.6 6.6 12.1 17.7 16.6 10.0 5.6 43.3 14.6 -2.9 29.1 34.5 -38.5 7.0 13.3 4.2

IM U.S. Small Cap Growth Equity 5.2 5.2 5.5 15.8 15.2 8.4 1.7 44.4 11.8 -4.9 26.7 33.5 -42.7 7.4 9.3 4.8

Cortina Small Cap Growth Rank 100 100 99 94 80 33 97 31 86 6 5 11 74 27 35 49

Cortina Small Cap Growth Russell 2000 Growth Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 6.0

9.0

12.0

15.0

18.0

21.0

Re

turn

(%)

16.0 18.0 20.0 22.0 24.0Risk (Standard Deviation %)


Cortina Small Cap Growth


0.0 6.0 12.0-6.0-12.0

Utilities



Industrials


Energy


Cash

-0.2

2.8-4.6

-1.0

-4.3

6.9-2.4

2.7

-1.7

-1.23.1


0.0 0.4 0.8-0.4-0.8

0.0

-0.30.3

0.0

0.1

0.40.1

0.1

0.1

0.0-0.2

Stock(Total: -6.1)

0.0 2.0-2.0-4.0-6.0

0.0

0.40.0

-0.6

-0.2

-3.5-0.3

-0.9

-0.2

-0.80.0

Cortina Small Cap Growth

0.0 2.0-2.0-4.0-6.0

0.0

0.20.3

-0.6

0.0

-3.1-0.2

-0.8

0.0

-0.8-0.2

Manager EvaluationCortina Small Cap Growth vs. Russell 2000 Growth IndexAs of March 31, 2015


54


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 961 2,399

Median Mkt. Cap ($M) 698 898





Debt to Equity 0.5 -0.3









PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

AtriCure Inc 2.1 0.0 2.1 2.7

Internap Corp 1.8 0.0 1.8 28.5

inContact Inc 1.7 0.1 1.6 24.0

Imperva Inc 1.7 0.1 1.6 -13.6

NxStage Medical Inc 1.7 0.1 1.5 -3.5

Radware Ltd 1.6 0.0 1.6 -5.0

ABIOMED Inc 1.5 0.3 1.1 88.1

Motorcar Parts of America Inc 1.4 0.1 1.4 -10.6

Neogenomics Inc 1.4 0.0 1.4 12.0

Infoblox Inc 1.4 0.1 1.3 18.1




0.0

50.0

100.0

150.0

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

4.2

95.8

0.00.0

96.8

3.2

Sector Weights (%)


0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


3.2

0.0

5.0

0.0

21.8

12.8

31.9

4.6

4.1

1.8

14.8

0.0

0.3

0.7

4.3

25.8

14.3

24.7

7.5

3.0

3.6

15.7

Manager EvaluationCortina Small Cap Growth vs. Russell 2000 Growth IndexAs of March 31, 2015

55




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Wellington Small Cap Value 4.0 4.0 9.6 16.2 14.8 10.6 6.8 33.7 15.6 1.2 26.4 31.2 -26.5 -3.0 19.9 10.4

Russell 2000 Value Index 2.0 2.0 4.4 14.8 12.5 7.5 4.2 34.5 18.1 -5.5 24.5 20.6 -28.9 -9.8 23.5 4.7

IM U.S. Small Cap Value Equity 2.3 2.3 4.5 14.4 13.1 7.5 3.8 35.7 16.6 -4.1 25.4 28.1 -32.2 -7.0 17.0 6.0

Wellington Small Cap Value Rank 15 15 2 18 11 1 12 76 62 4 35 33 3 17 21 12

Wellington Small Cap Value Russell 2000 Value Index

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 8.0

10.0

12.0

14.0

16.0

18.0

Re

turn

(%)


Russell 2000 Value Index

Wellington Small Cap Value


0.0 20.0 40.0-20.0-40.0

Utilities



Industrials


Energy


Cash

-4.0

-0.82.8

1.7

10.8

6.7-21.6

1.6

1.5

-3.24.4


0.0 0.4 0.8 1.2-0.4-0.8

0.1

0.00.0

0.0

0.0

0.60.2

-0.1

0.0

-0.1-0.1

Stock(Total: 1.8)

0.0 0.8 1.6-0.8-1.6

0.0

0.0-0.1

0.8

-0.4

0.40.2

0.4

-0.1

0.60.0

Wellington Small Cap Value

0.0 0.5 1.0 1.5-0.5-1.0

0.1

0.0-0.1

0.8

-0.4

1.00.3

0.3

-0.1

0.5-0.1

Manager EvaluationWellington Small Cap Value vs. Russell 2000 Value IndexAs of March 31, 2015


56


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 1,811 1,843

Median Mkt. Cap ($M) 1,492 653














PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Belden Inc 3.8 0.0 3.8 18.8

Helen of Troy Ltd 2.7 0.2 2.5 25.3

Mueller Industries Inc. 2.7 0.1 2.6 6.1

G&K Services Inc 2.5 0.2 2.4 2.8

Webster Financial Corp 2.2 0.4 1.8 14.6

Charles River Laboratories International 2.1 0.0 2.1 24.6

Cubic Corp 2.0 0.1 1.9 -1.4

Albany International Corp. 2.0 0.1 1.9 5.1

United Stationers Inc 1.9 0.2 1.7 -2.4

ICU Medical Inc 1.8 0.1 1.7 13.7




0.0

50.0

100.0

150.0

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

1.2

98.8

0.00.0

94.7

5.3

Sector Weights (%)


0.0 10.0 20.0 30.0 40.0 50.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


5.3

2.9

0.0

7.0

11.6

23.6

12.7

17.8

5.9

4.7

8.5

0.0

6.9

0.8

4.4

9.6

12.8

6.0

40.7

3.8

2.8

12.2

Manager EvaluationWellington Small Cap Value vs. Russell 2000 Value IndexAs of March 31, 2015

57




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Walter Scott Int'l (Dreyfus) 3.7 3.7 1.9 5.2 5.3 N/A -4.4 9.0 21.0 -9.9 14.0 34.9 -31.6 8.5 N/A N/A

MSCI AC World ex USA (Net) 3.5 3.5 -1.0 6.4 4.8 5.5 -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 26.7 16.6

IM International Equity 4.2 4.2 -1.2 7.2 5.6 5.7 -4.5 17.4 18.6 -14.9 12.9 36.3 -46.0 13.2 26.2 15.7

Walter Scott Int'l (Dreyfus) Rank 58 58 27 68 54 N/A 49 70 28 13 44 54 3 78 N/A N/A

Walter Scott Int'l (Dreyfus) MSCI AC World ex USA (Net)

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 4.0

4.5

5.0

5.5

6.0

Re

turn

(%)


MSCI AC World ex USA (Net)

Walter Scott Int'l (Dreyfus)


0.0 15.0-15.0-30.0

Utilities



Industrials


Energy


Cash

0.1

-3.3-1.5

-1.5

1.4

3.7-13.2

2.6

4.5

5.91.2


0.0 0.3 0.6-0.3-0.6

0.0

0.10.0

-0.1

0.0

0.30.2

-0.2

0.0

0.20.0

Stock(Total: -0.3)

0.0 0.4 0.8-0.4-0.8

0.2

0.20.1

0.1

-0.1

-0.30.3

-0.1

-0.3

-0.40.0

Walter Scott Int'l (Dreyfus)

0.0 0.4 0.8-0.4-0.8

0.2

0.30.1

0.1

0.0

0.00.5

-0.4

-0.3

-0.20.0

Manager EvaluationWalter Scott Int'l (Dreyfus) vs. MSCI AC World ex USA (Net)As of March 31, 2015


58

Total Attribution

0.0 0.2 0.4 0.6 0.8 1.0-0.2-0.4-0.6-0.8-1.0-1.2-1.4

Pacific

Other

North America

Middle East

Europe ex EMU

EMU

EM Latin America

EM Europe + Middle East + Africa

EM Asia

Cash

-0.8

0.0

0.5

0.0

0.2

0.0

0.5

0.1

-0.3

0.0

Performance Attribution


0.0 10.0 20.0 30.0-10.0-20.0

Pacific

Other

North America

Middle East

Europe ex EMU

EMU

EM Latin America


EM Asia

Cash

13.7

-0.2

-5.6

-0.4

11.7

-3.5

-3.5

-3.7

-9.7

1.2


0.0 0.3 0.6 0.9-0.3-0.6

0.6

0.0

0.5

0.0

-0.2

-0.1

0.5

0.1

-0.1

0.0

Stock(Total: -1.2)

0.0 0.7 1.4-0.7-1.4-2.1-2.8

-1.4

0.0

0.0

0.0

0.4

0.1

0.0

0.0

-0.2

0.0

Manager EvaluationWalter Scott Int'l (Dreyfus) vs. MSCI AC World ex USA (Net)1 Quarter Ending March 31, 2015

59


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 62,012 57,202

Median Mkt. Cap ($M) 33,264 7,239














PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Fanuc Corp 2.7 0.2 2.4 32.4

Novo Nordisk A/S 2.6 0.6 2.0 28.3

Reckitt Benckiser Group PLC 2.3 0.3 2.0 6.0

Keyence Corp 2.3 0.1 2.1 22.1

Industria De Diseno Textil Inditex SA 2.3 0.2 2.1 11.9

AIA Group Ltd 2.3 0.4 1.8 13.1

Compass Group PLC 2.3 0.2 2.1 2.9



L'Air Liquide 2.2 0.2 2.0 3.4




0.0

15.0

30.0

45.0

60.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

25.4

37.5

30.1

6.9

0.0

25.8

51.0

20.1

0.72.4

Sector Weights (%)


0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


2.4

3.6

2.0

6.2

6.6

13.9

12.3

12.3

8.2

13.7

18.8

0.0

3.4

5.1

7.6

7.8

11.1

9.1

27.3

6.9

9.9

11.8

Manager EvaluationWalter Scott Int'l (Dreyfus) vs. MSCI AC World ex USA (Net)As of March 31, 2015

60

Walter Scott Int'l(Dreyfus)

MSCI AC World exUSA (Net)

Australia 4.1 5.2

Hong Kong 12.1 3.8

Japan 19.1 15.9

New Zealand 0.0 0.1

Singapore 2.2 1.1

Pacific 37.6 26.2

Austria 0.0 0.1

Belgium 0.0 0.9

Finland 2.0 0.6

France 9.9 6.6

Germany 4.4 6.8

Ireland 0.0 0.2

Italy 0.0 1.6

Netherlands 0.0 2.1

Portugal 0.0 0.1

Spain 2.3 2.5

EMU 18.6 21.8

Denmark 2.6 1.2

Norway 0.0 0.5

Sweden 2.1 2.2

Switzerland 11.8 6.7



Canada 1.7 6.8


Israel 0.0 0.4

Middle East 0.0 0.4


Walter Scott Int'l(Dreyfus)

MSCI AC World exUSA (Net)

Brazil 0.0 1.6


Chile 0.0 0.3

Colombia 0.0 0.1

Mexico 0.0 1.0

Peru 0.0 0.1



China 1.0 3.4

India 0.0 1.6

Indonesia 0.0 0.6

Korea 0.0 3.2

Malaysia 0.0 0.8

Philippines 0.0 0.3

Taiwan 2.1 2.8

Thailand 0.0 0.5

EM Asia 3.1 13.1


Egypt 0.0 0.1

Greece 0.0 0.1

Hungary 0.0 0.0

Poland 0.0 0.3

Qatar 0.0 0.2

Russia 0.0 0.8


Turkey 0.0 0.3





Cash 2.4 0.0

Other 0.0 0.2

Total 100.0 100.0

Manager EvaluationWalter Scott Int'l (Dreyfus) vs. MSCI AC World ex USA (Net) - Country/Region AllocationAs of March 31, 2015

61




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Northern Cross Int'l (Harbor) 5.8 5.8 -2.4 6.8 6.6 7.9 -6.8 16.8 20.9 -11.1 12.0 38.6 -42.7 21.8 32.7 20.8

MSCI AC World ex USA (Net) 3.5 3.5 -1.0 6.4 4.8 5.5 -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 26.7 16.6

IM International Equity 4.2 4.2 -1.2 7.2 5.6 5.7 -4.5 17.4 18.6 -14.9 12.9 36.3 -46.0 13.2 26.2 15.7

Northern Cross Int'l (Harbor) Rank 21 21 63 55 34 19 76 52 30 20 55 45 28 26 19 29

Northern Cross Int'l (Harbor) MSCI AC World ex USA (Net)

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 2.0

4.0

6.0

8.0

10.0

Re

turn

(%)


MSCI AC World ex USA (Net)

Northern Cross Int'l (Harbor)


0.0 8.0 16.0-8.0-16.0

Utilities



Industrials


Energy


Cash

-3.6

-5.43.1

-5.1

7.2

4.7-4.6

-6.1

6.3

2.01.4


0.0 0.4 0.8-0.4-0.8

0.3

0.1-0.1

-0.2

0.1

0.30.1

0.5

0.0

0.1-0.1

Stock(Total: 1.2)

0.0 0.8 1.6-0.8

0.0

0.0-0.1

-0.1

0.9

0.20.4

-0.1

0.3

-0.20.0


0.0 0.5 1.0 1.5-0.5-1.0

0.3

0.1-0.1

-0.3

1.0

0.50.4

0.4

0.3

-0.2-0.1

Manager EvaluationNorthern Cross Int'l (Harbor) vs. MSCI AC World ex USA (Net)As of March 31, 2015


62

Total Attribution

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8-0.2-0.4-0.6-0.8

Pacific

Other

North America

Middle East

Europe ex EMU

EMU

EM Latin America


EM Asia

Cash

-0.2

0.0

0.4

0.0

1.1

1.0

0.1

0.1

-0.2

-0.1

Performance Attribution


0.0 15.0 30.0 45.0-15.0-30.0

Pacific

Other

North America

Middle East

Europe ex EMU

EMU

EM Latin America


EM Asia

Cash

-13.8

-0.2

-5.1

-0.4

16.5

19.1

-1.6

-3.7

-12.1

1.4


0.0 0.4 0.8 1.2-0.4-0.8-1.2

-0.6

0.0

0.5

0.0

-0.2

0.3

0.2

0.1

-0.1

-0.1

Stock(Total: 2.2)

0.0 0.6 1.2 1.8 2.4-0.6-1.2

0.4

0.0

-0.1

0.0

1.4

0.7

-0.1

0.0

-0.1

0.0

Manager EvaluationNorthern Cross Int'l (Harbor) vs. MSCI AC World ex USA (Net)1 Quarter Ending March 31, 2015

63


Portfolio Benchmark

Wtd. Avg. Mkt. Cap ($M) 69,771 57,202

Median Mkt. Cap ($M) 34,800 7,239














PortfolioWeight

(%)

BenchmarkWeight

(%)

ActiveWeight

(%)

QuarterlyReturn

(%)

Novo Nordisk A/S 3.2 0.6 2.6 28.3

Fanuc Corp 3.0 0.2 2.7 32.4

Novartis AG 2.8 1.3 1.5 9.4


Schneider Electric SA 2.6 0.2 2.4 5.9

Axa, Paris 2.6 0.3 2.4 8.4

Lloyds Banking Group PLC 2.6 0.4 2.2 -1.7

Banco Bilbao Vizcaya Argentaria 2.5 0.4 2.1 7.8

Rolls Royce Holdings PLC 2.4 0.2 2.2 4.3





0.0

20.0

40.0

60.0

80.0

>$75 Bil $20 Bil - $75 Bil

$5 Bil - $20 Bil

$0 - $5 Bil

Cash

25.4

37.5

30.1

6.9

0.0

28.3

59.1

10.9

0.3 1.4

Sector Weights (%)


0.0 8.0 16.0 24.0 32.0 40.0

Cash

Utilities


Materials


Industrials

Health Care

Financials

Energy

Consumer Staples


1.4

0.0

0.0

8.8

2.4

18.4

14.2

24.0

1.3

14.4

15.1

0.0

3.4

5.1

7.6

7.8

11.1

9.1

27.3

6.9

9.9

11.8

Manager EvaluationNorthern Cross Int'l (Harbor) vs. MSCI AC World ex USA (Net)As of March 31, 2015

64

Harbor InternationalFund

MSCI AC World exUSA

Australia 0.0 5.2

Hong Kong 0.8 3.8

Japan 9.6 15.9

New Zealand 0.0 0.1

Singapore 1.0 1.1

Pacific 11.4 26.2

Austria 0.9 0.1

Belgium 2.1 0.9

Finland 0.0 0.6

France 19.5 6.6

Germany 12.5 6.8

Ireland 0.0 0.2

Italy 0.5 1.6

Netherlands 1.7 2.1

Portugal 0.0 0.1

Spain 3.8 2.5

EMU 41.1 21.8

Denmark 3.2 1.2

Norway 0.0 0.5

Sweden 5.8 2.2

Switzerland 16.9 6.7



Canada 0.3 6.8


Israel 0.0 0.4

Middle East 0.0 0.4


Harbor InternationalFund

MSCI AC World exUSA

Brazil 1.1 1.6


Chile 0.0 0.3

Colombia 0.8 0.1

Mexico 0.0 1.0

Peru 0.0 0.1



China 0.0 3.4

India 0.0 1.6

Indonesia 0.0 0.6

Korea 0.0 3.2

Malaysia 0.7 0.8

Philippines 0.0 0.3

Taiwan 0.0 2.8

Thailand 0.0 0.5

EM Asia 0.7 13.1


Egypt 0.0 0.1

Greece 0.0 0.1

Hungary 0.0 0.0

Poland 0.0 0.3

Qatar 0.0 0.2

Russia 0.0 0.8


Turkey 0.0 0.3





Cash 1.4 0.0

Other 0.0 0.2

Total 100.0 100.0

Manager EvaluationNorthern Cross (Harbor Int'l) vs. MSCI AC World ex USA (Net) - Country/Region AllocationAs of March 31, 2015

65


Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)


Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Barrow Hanley Short Fixed 0.6 0.6 0.9 0.8 1.2 2.9 0.6 0.4 1.0 1.5 2.4 4.0 4.9 6.8 4.3 1.8

Barclays 1-3 Year Gov/Credit 0.6 0.6 1.1 1.0 1.4 2.9 0.8 0.6 1.3 1.6 2.8 3.8 5.0 6.8 4.3 1.8

IM U.S. Short Term Investment Grade 0.5 0.5 0.7 1.2 1.7 2.6 0.6 0.5 3.1 1.1 3.5 8.7 -2.8 4.5 4.2 1.8

Barrow Hanley Short Fixed Rank 41 41 38 70 75 39 50 52 90 34 73 88 4 4 46 51

Barrow Hanley Short Fixed Barclays 1-3 Year Gov/Credit

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 0.8

1.0

1.2

1.4

1.6

Re

turn

(%)

0.5 0.6 0.7Risk (Standard Deviation %)

Barclays 1-3 Year Gov/Credit

Barrow Hanley Short Fixed



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Barrow Hanley Short Fixed 1.2 0.6 1.1 -0.2 1.0 1.7 0.1 -1.3 0.2 20.0 24y

Barclays 1-3 Year Gov/Credit 1.4 0.6 1.3 0.0 1.0 2.1 0.0 N/A 0.1 0.0 24y

90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 0.6 -2.1 0.0 10.0 24y

Manager EvaluationBarrow Hanley Short Fixed vs. Barclays 1-3 Year Gov/CreditAs of March 31, 2015

66


Portfolio Benchmark



Avg. Quality A+ AA+




0.0

25.0

50.0

75.0

100.0

AAA AA ABBB

74.1

7.110.9

7.9

24.1

8.6

42.6

24.8



0.0

50.0

100.0

150.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

0.0

100.0

0.07.3

83.0

9.7



0.0

25.0

50.0

75.0

100.0

Treasu

ries

Agenc

ies

Credi

tABS

Non-U

S

Munic

ipal

s

Cas

h

Oth

er

62.3

14.4

21.8

0.0 1.4 0.1 0.0 0.0

11.5

2.4

53.4

10.4

16.9

0.0 1.14.3

Manager EvaluationBarrow Hanley Short Fixed vs. Barclays 1-3 Year Gov/CreditAs of March 31, 2015

67




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Dodge & Cox Fixed Income 1.5 1.5 5.0 4.2 5.0 5.5 5.9 0.3 8.1 4.8 7.2 16.1 -0.3 4.7 5.3 2.0

Barclays U.S. Aggregate 1.6 1.6 5.7 3.1 4.4 4.9 6.0 -2.0 4.2 7.8 6.5 5.9 5.2 7.0 4.3 2.4

IM U.S. Broad Market Core+ Fixed Income 1.7 1.7 5.1 4.0 5.1 5.3 5.4 -1.0 8.2 6.1 8.1 14.2 -2.2 5.6 4.0 1.8

Dodge & Cox Fixed Income Rank 71 71 52 40 55 45 35 19 55 76 73 34 39 76 17 43

Dodge & Cox Fixed Income Barclays U.S. Aggregate

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 3.6

4.2

4.8

5.4

6.0

Re

turn

(%)

1.8 2.0 2.2 2.4 2.6 2.8 3.0 3.2 3.4Risk (Standard Deviation %)

Barclays U.S. Aggregate

Dodge & Cox Fixed Income



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Dodge & Cox Fixed Income 5.0 2.3 4.9 3.1 0.4 2.2 2.5 0.2 0.9 65.0 26y 3m

Barclays U.S. Aggregate 4.4 2.9 4.3 0.0 1.0 1.5 0.0 N/A 1.2 0.0 26y 3m


Manager EvaluationDodge & Cox Fixed Income vs. Barclays U.S. AggregateAs of March 31, 2015

68


Portfolio Benchmark




Avg. Quality A+ AA+


Dodge & Cox Fixed Barclays U.S. Aggregate

0.0

25.0

50.0

75.0

100.0

AAA AA ABBB BB B

71.4

4.6

11.6 12.4

0.0 0.0

49.0

0.1

7.8

30.8

9.6

2.8



0.0

15.0

30.0

45.0

60.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

0.0

23.8 23.6

38.0

3.2

11.4

5.8

21.2

26.928.9

5.2

12.0



0.0

15.0

30.0

45.0

60.0

Treasu

ries

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

CMBS

36.1

4.2

19.8

0.0

28.2

0.5

6.8

2.40.0 0.0

2.0

7.0

3.2

30.3

12.4

34.8

7.9

0.0 0.0

3.9

0.5 0.0

Manager EvaluationDodge & Cox Fixed vs. Barclays U.S. AggregateAs of March 31, 2015

69




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

MetWest Fixed 1.3 1.3 5.1 4.4 5.8 6.5 5.6 -1.5 11.0 5.5 11.7 17.3 -1.3 6.5 7.2 3.3

Barclays U.S. Aggregate 1.6 1.6 5.7 3.1 4.4 4.9 6.0 -2.0 4.2 7.8 6.5 5.9 5.2 7.0 4.3 2.4

IM U.S. Broad Market Core+ Fixed Income 1.7 1.7 5.1 4.0 5.1 5.3 5.4 -1.0 8.2 6.1 8.1 14.2 -2.2 5.6 4.0 1.8

MetWest Fixed Rank 87 87 50 32 21 5 43 66 9 66 5 30 40 30 1 4

MetWest Fixed Barclays U.S. Aggregate

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 2.0

4.0

6.0

8.0

Re

turn

(%)


Barclays U.S. Aggregate

MetWest Fixed



SharpeRatio

TrackingError

InformationRatio


InceptionDate

MetWest Fixed 5.8 3.0 5.6 2.6 0.7 1.9 2.2 0.6 0.9 55.0 18y

Barclays U.S. Aggregate 4.4 2.9 4.3 0.0 1.0 1.5 0.0 N/A 1.2 0.0 18y


Manager EvaluationMetWest Fixed vs. Barclays U.S. AggregateAs of March 31, 2015

70


Portfolio Benchmark




Avg. Quality AA AA+



0.0

25.0

50.0

75.0

100.0

AAA AA ABBB BB

71.4

4.6

11.6 12.4

0.0

59.4

7.6

19.5

9.14.4



0.0

20.0

40.0

60.0

80.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

5 <

10 Yrs

10 <

20 Yrs

> 20

Yrs

0.0

23.8 23.6

38.0

3.2

11.4

0.9

23.6

10.8

52.7

3.6

8.4



0.0

25.0

50.0

75.0

-25.0

Treasu

ries

TIPS

Agenc

ies

Credi

t

Hig

h Yie

ldM

BSABS

Non-U

S

Emer

ging

Munic

ipal

s

Cas

h

Oth

er

CMBS

36.1

0.04.2

19.8

0.0

28.2

0.5

6.82.4

0.0 0.0 0.0 2.0

19.1

4.91.0

18.9

3.5

36.6

5.9

0.0 0.0 1.7

-7.7

10.06.1

Manager EvaluationMetWest Fixed vs. Barclays U.S. AggregateAs of March 31, 2015

71


Comparative Performance and Rolling Return Risk and Return (Apr-2010 - Mar-2015)


Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Lighthouse Diversified 2.9 2.9 7.7 8.1 6.4 5.3 7.7 11.4 6.4 -1.2 6.0 18.0 -22.6 10.4 12.5 8.4

HFRI Fund of Funds Composite Index 2.5 2.5 5.4 5.4 3.5 3.2 3.4 9.0 4.8 -5.7 5.7 11.5 -21.4 10.3 10.4 7.5

Rolling 3 Years Active Return Quarterly Active Return

0.0

6.0

12.0

-6.0

-12.0

Ac

tive

Re

turn

(%)

12/96 9/98 6/00 3/02 12/03 9/05 6/07 3/09 12/10 9/12 3/15 0.0

2.5

5.0

7.5

10.0

Re

turn

(%)

4.2 4.3 4.4 4.5 4.6 4.7Risk (Standard Deviation %)

HFRI Fund of Funds Composite Index

Lighthouse Diversified



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Lighthouse Diversified 6.4 4.3 6.2 3.2 0.9 1.4 1.7 1.6 2.0 80.0 18y 8m

HFRI Fund of Funds Composite Index 3.5 4.5 3.5 0.0 1.0 0.8 0.0 N/A 2.8 0.0 18y 8m


Manager EvaluationLighthouse Diversified vs. HFRI Fund of Funds Composite IndexAs of March 31, 2015

72


Portfolio

Net Exposure % 43.3

Leverage 1.7

Manager Count 34

# Managers Funded 0

# Managers Redeemed 0

Region Allocation

Asia11.0%

Europe18.0%

Latin America2.0% United States

69.0%

Asset Breakdown

Relative Value Arbitrage20.9%

Market Neutral Equity12.0%

Cash0.1%Credit

15.4%

Fixed Income8.7%

Global Trading5.4%

Long/Short37.5%

Manager EvaluationLighthouse DiversifiedAs of March 31, 2015

73




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Pointer Offshore LTD 4.0 4.0 12.7 10.3 9.8 9.5 10.2 15.1 7.0 4.3 11.2 14.8 -16.5 30.4 11.1 10.5

HFRI Fund of Funds Composite Index 2.5 2.5 5.4 5.4 3.5 3.2 3.4 9.0 4.8 -5.7 5.7 11.5 -21.4 10.3 10.4 7.5


0.0

8.0

16.0

-8.0

-16.0

Ac

tive

Re

turn

(%)

9/90 12/92 3/95 6/97 9/99 12/01 3/04 6/06 9/08 12/10 3/13 3/15 -6.0

0.0

6.0

12.0

18.0

Re

turn

(%)



Pointer Offshore LTD



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Pointer Offshore LTD 9.8 6.2 9.5 5.6 1.2 1.5 3.3 1.8 2.6 85.0 24y 9m

HFRI Fund of Funds Composite Index 3.5 4.5 3.5 0.0 1.0 0.8 0.0 N/A 2.8 0.0 24y 9m


Manager EvaluationPointer Offshore LTD vs. HFRI Fund of Funds Composite IndexAs of March 31, 2015

74


Portfolio

Net Exposure % 55.0

Gross Exposure % 153.0

Gross Long % 104.0

Gross Short % 49.0

Leverage 1.5

Manager Count 26

# Managers Funded 2

# Managers Redeemed 3

Region Allocation

Other17.7%

Asia12.7%

Europe13.8%

North America55.8%

Strategy Allocation

Special Situations, 9.8%

Healthcare, 4.3%

Asia, 3.9%

Distressed/Credit, 19.3%

Domestic, 7.0%

Financials, 3.9%

Global, 51.8%

Manager EvaluationPointer Offshore LTDAs of March 31, 2015

75

Manager EvaluationOaktree Real Estate Opportunities Fund VIAs of December 31, 2014*

Commencement of Operations 9/20/2012

Final Closing Date 9/20/2013

Investment Period End Date 9/20/2016

Fund Closing Date19/20/2022

Fund Type Closed-end

Total Committed Capital $2,677

% Drawn285%

% Distributed 0%

GP and Affiliates % of the Fund 3.0%

Administrative Facts Historical Investment Profile

Investment Category # of Investments Total ($) % of Total

Commercial 44 1148.7 51.0%

Non-US 17 506.3 22.5%

Residential 8 213.9 9.5%

Residential NPLs 15 141.9 6.3%

Commercial NPLs 11 125.9 5.6%

Corporate 2 115.3 5.1%

Total 97 2252.1 100%

Net Invested Capital

_____________________________* Characteristics as of March 31, 2015 were unavailable at time of report production.1 Fund Closing Date is subject to two possible one-year add-ons after September 20, 2022.2 The percent drawn is as of March 2, 2015.

Geographic Exposure

28.2%

7.1%

18.2%21.2%

10.0%

6.0%3.8%

5.5% Multi-Regional

Mountain

Pacific

Non-US

Southeast

Northeast

Other

East North Central

Asset TypeMarket

Value%

STORE Platform Equity $147.9 5.9%

Anglesea Logistic Equity $126.3 5.1%

Wells Fargo Master Lease Portfolio Equity $106.5 4.3%

Philadelphia Marriott Equity $94.5 3.8%

Chicago Board of Trade Building Equity $72.7 2.9%

Interventure Southeast Equity $72.0 2.9%

Bascom Platform Equity $65.3 2.6%

Genesis Platform Equity $57.0 2.3%

Bacchus Equity $56.0 2.3%

Brea Place Equity $50.7 2.0%

Total $848.9 34.1%

Non-US

Corporate

Commercial

Commercial

Top Ten Holdings

Investment Category

Commercial

Non-US

Commercial

Residential

Commercial

Commercial

76

Manager EvaluationWalton Street Real Estate Fund VIIAs of December 31, 2014*

Geographic Exposure3

Commencement of Operations 5/2/2013

Final Closing Date 12/31/2013

Investment Period End Date 11/2/2017

Fund Closing Date 1 11/2/2023

Fund Type Closed-end

Total Committed Capital $1,278

% Drawn265.8%

% Distributed 0%

GP and Affiliates % of the Fund 7.7%

Administrative Facts

Top Ten Holdings

Historical Investment Profile

Committed

Equity

Investment Category # of Investments Total ($) % of Total Total ($)

Office 11 270.0 39.0% 887.5

Residential 16 190.9 27.6% 440.4

Hotel 6 99.9 14.4% 445.4

NPLs 1 23.4 3.4% 44.4

Industrial Land 2 39.1 5.6% 75.7

Retail 6 61.1 8.8% 199.3

Parking Garage 1 7.2 1.0% 23.0

Total 43 691.4 100% 2115.6

Invested Capital

_____________________________* Characteristics as of March 31, 2015 were unavailable at time of report production.1 Fund Closing Date is subject to two possible one-year add-ons after November 2, 2023.2 The percent drawn is as of February 24, 2015.3 Reflects only those holdings with invested equity.

Investment

Date

Invested

Equity

% of

Total

237 Park Avenue Oct-13 $78.0 11.3%

Milestone Business Park Dec-13 $33.6 4.9%

Torrey Ridge Science Center Aug-12 $32.9 4.8%

Hilton Alexandria Jun-14 $30.4 4.4%

Continental Towers May-13 $28.0 4.0%

Uptown Station Jun-14 $27.1 3.9%

Ambassador Waikiki Apr-14 $24.1 3.5%

NPL Platform Various $23.4 3.4%

Maui Apr-14 $22.7 3.3%

Fairmont Ghirardelli Square Various $22.2 3.2%

Total $322.4 46.6%

Office

Office

Office

NPLs

Office

Hotel

NPLs

Hotel

Office

Investment Category

Hotel39.8%

13.8%

22.5%

20.5%

3.4%

West

Midwest

South

East

Various, U.S.

77




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

District - Barrow Hanley 0.5 0.5 0.8 0.6 1.1 2.8 0.4 0.3 0.9 1.5 2.4 4.0 4.9 6.8 4.3 1.8

Barclays 1-3 Govt 0.5 0.5 1.0 0.7 1.1 2.7 0.6 0.4 0.5 1.6 2.4 1.4 6.7 7.1 4.1 1.7

IM U.S. Short Term Investment Grade 0.5 0.5 0.7 1.2 1.7 2.6 0.6 0.5 3.1 1.1 3.5 8.7 -2.8 4.5 4.2 1.8

District - Barrow Hanley Rank 54 54 47 76 78 42 67 63 91 34 73 88 4 4 46 51

District - Barrow Hanley Barclays 1-3 Govt

0

25

50

75

100

Re

turn

Pe

rce

nti

le R

an

k

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 1.0

1.1

Re

turn

(%)


Barclays 1-3 GovtDistrict - Barrow Hanley



SharpeRatio

TrackingError

InformationRatio


InceptionDate

District - Barrow Hanley 1.1 0.6 1.0 0.1 0.9 1.6 0.2 0.0 0.1 35.0 24y

Barclays 1-3 Govt 1.1 0.6 1.0 0.0 1.0 1.6 0.0 N/A 0.1 0.0 24y


Manager EvaluationDistrict - Barrow Hanley vs. Barclays 1-3 GovtAs of March 31, 2015

78


Portfolio Benchmark



Avg. Quality AA+ AAA




0.0

50.0

100.0

150.0

AAA AA A

96.2

3.80.0

81.6

6.312.1



0.0

50.0

100.0

150.0

< 1 Yr

1 < 3 Yrs

3 < 5 Yrs

0.0

100.0

0.02.5

92.2

5.3



0.0

50.0

100.0

150.0

Treasu

ries

Agenc

ies

Credi

t

MBS

ABSC

ash

88.0

12.0

0.0 0.0 0.0 0.0

74.3

0.0

18.5

1.34.3 1.7

Manager EvaluationDistrict - Barrow Hanley vs. Barclays 1-3 GovtAs of March 31, 2015

79

Capital Markets Review

80

Capital Markets ReviewEconomy

0

10

20

30

40

50

60

0 25 50 75 100

Pro

ba

bil

ity (

%)

Fed Rate Increase (bps)

Interest Rate Hike Expectations Fall

4/29/2015

6/17/2015

7/29/2015

9/17/2015

10/28/2015

12/16/2015

1/27/2016

FOMC Meetings:

3/31/2015

3/31/2014

Source: Bloomberg

0.5

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

2.3

$/F

ore

ign

Cu

rre

ncy

USD Reaches Multi-Year Highs

$/Euro $/Swiss Franc $/Pound

$/100 Yen $/$CAN

Source: Bloomberg

Interest Rate Hike Delayed as Economic Growth Remains Tepid

• The Federal Reserve maintained its ultra-low interest rate policy, further pushing

back its expected timeline for raising rates. Investors lowered expectations for a

rate increase after the Fed lowered its unemployment rate target to 5.0-5.2% from

5.5%, and cited economic growth’s recent dependency on low rates. Not wanting

to quash economic expansion by raising rates too early remains a tenet of Janet

Yellen’s philosophy.

• The Saudi Arabian plan to maintain market share in the global crude oil market

began to take its toll on U.S. and Canadian oil producers. WTI crude prices fell to

six year lows, prompting drillers to significantly lower their rig counts and layoff

thousands of workers. Although U.S. oil output continued to rise, concerns over

diminishing storage capacity added to the price drop, fueling fears that a global oil

glut might further bring down prices. By quarter end, prices had rebounded to the

mid-$50/barrel range as demand ticked up and expectations of future U.S.

production diminished.

• The euro fell to 2003 levels as it broke the $1.05/€ value during April. Long-term

interest rates in Germany, Finland and Switzerland went negative as the ECB

bond-buying program added to the euro’s weakness. The Swiss National Bank

decoupled the Swiss franc from the euro to prevent inflation caused by the weak

euro. The Bank of Canada surprised with a 0.25% rate cut in January, citing a

sharp drop in oil prices as a risk to growth. Greece continued to teeter on the edge

of default as a new government threatened to not repay loans unless payback

terms were eased. European lenders balked at the idea, forcing Greek leaders to

abide by current loan covenants.

250

300

350

400

450

500

Ba

rre

ls (

Mil

lio

ns)

U.S. Crude Oil in Storage

Source: D.O.E.

81

-12.0%

-8.0%

-4.0%

0.0%

4.0%

8.0%

12.0%

3.5%

7.6%

5.3% 4.9%3.5%

1.0%

-6.0%

5.2%

2.2% 2.0% 1.9%

-9.6%

1st Quarter and Trailing One-Year Sector Returns

Capital Markets ReviewEquities

1st Quarter 2015 World Equity Returns (USD)

Developed Markets Emerging Markets

10.6%

-13.4%

10.5%

7.9%

3.7%

16.6%

17.3%

12.4%

4.0%

16.8%

27.6%

-4.6%

-2.2%

-0.7%

0.4%

1.0%

1.3%

1.7%

1.8%

1.9%

4.7%

7.8%

-20.0% -10.0% 0.0% 10.0% 20.0% 30.0%

Utilities

Energy

Financials

Industrials

Materials

Cons. Staples

Info Tech

Russell 3000

Telecom

Cons. Disc.

Health Care 1Q15

OneYear

1.6%

4.3%

-0.7%

2.0%

3.8%

6.6%

12.7%

8.2%

9.3%

4.4%

16.1%

12.1%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Russell

1000Index

Russell

2000Index

Russell

1000Value

Russell

2000Value

Russell

1000Growth

Russell

2000Growth

1Q15 One Year

Russell 1000 Index vs. Russell 2000 Index Central Bank Measures Boost Markets; Strong USD a Hindrance

• The Russell 3000 Index experienced modest gains during the first quarter,

returning 1.8%. Stocks fell sharply to start the quarter as the price of crude oil

continued to fall; however, domestic indices rebounded strongly mid-quarter with

oil price stabilization, positive European economic data, and Fed reassurances

that they were in no hurry to raise interest rates. Equity markets gave back much

of their mid-quarter gains late in the quarter on worse-than-expected U.S.

economic data and a strengthening U.S. dollar.

• After lagging behind in 2014, small-caps outperformed large-caps. Small-cap

indices have less exposure to both the energy sector and foreign currency relative

to large-caps, which shielded them from falling oil prices and a strengthening U.S.

dollar. Additionally, quarterly performance dispersion among growth and value

styles was its largest in more than five years during the first quarter as growth

stocks outpaced value stocks.

• Non-U.S. equities outperformed domestic equities. Aggressive central bank

stimulus action, particularly from the ECB and Bank of Japan, bolstered non-U.S.

equities. However, given the increased stimulus measures and anticipation of the

first U.S. interest rate hike sometime in 2015, most currencies depreciated versus

the U.S. dollar, hindering U.S. dollar-denominated returns. Despite the

strengthening U.S. dollar and weakening commodity prices, emerging market

equities also advanced in U.S. dollar terms.

Broad Value Growth

82

Source: Barclays

Source: Barclays

Duration-adjusted Excess Returns to Treasuries (bps) Trailing Ten-Year High Yield Spreads vs. Energy Sector

Capital Markets ReviewFixed Income

Best Period Second Best Period Worst Period Second Worst Period

2008 2009 2010 2011 2012 2013 2014 1Q15

Aggregate -710 746 171 -114 226 93 10 -9

Agency -110 288 77 -25 166 1 10 -3

MBS -232 495 225 -106 91 98 40 -50

ABS -2223 2496 169 52 246 24 53 14

CMBS -3274 2960 1501 47 841 97 108 37

Credit -1786 1990 192 -322 693 226 -18 17

High Yield -3832 5955 974 -240 1394 923 -112 109

Emerging -2842 3797 508 -537 1503 -32 -120 490

250

500

750

1000

1250

1500

1750

2000

Op

tio

n-A

dju

ste

d S

pre

ad

(O

AS

) U.S. High Yield - OAS

U.S. HY 10-Year Average

HY Energy - OAS

HY Energy 10-Year Average

-1.2%

-1.0%

-0.8%

-0.6%

-0.4%

-0.2%

0.0%

0.2%

Ch

an

ge

in

Yie

ld

Maturity (Years)

1Q15

1 Yr Ending 1Q15

US Treasury Yield Curve Change by Maturity

Source: US Dept of The Treasury

Risk Appetite Returns in First Quarter

• All major fixed income sectors generated positive total returns during the first

quarter as continued global central bank accommodation bolstered investor

demand for risk assets. U.S. rates declined across the curve in response to

dovish comments from the Fed, softer domestic economic data, and growing

demand from global investors as many Europeans face negative yields in their

home markets. TIPS lagged nominal Treasuries during the quarter as

inflations expectations remained subdued.

• High yield credit generated the strongest duration-adjusted excess returns to

Treasuries during the quarter. Although the sector remained volatile, high yield

energy spreads tightened after reaching six-year highs in December. Energy

spreads have traded inside the broader high yield segment for much of the past

ten years, but remained considerably wider at quarter-end.

• Within the securitized markets, CMBS and ABS outperformed MBS on a

duration-adjusted basis. MBS lagged due to elevated interest rate volatility and

faster-than-expected prepayment speeds.

• Global government rates generally declined as many central banks eased

policies to stimulate growth, while the U.S. Dollar continued to rally strongly

against most developed and emerging currencies.

83

Capital Markets ReviewHedge Funds

HFRI Index Performance – First Quarter and Trailing 12 Months Hedge Fund Strategies Sought by Investors over the Next 12 Months

Source: Preqin

55%

38%

17% 16%13%

11% 11%

6% 5% 5%

0%

10%

20%

30%

40%

50%

60%

Pro

port

ion o

f F

und S

earc

hes

5.7%

6.0%

5.4%

4.3%

3.4%

9.5%

1.1%

3.5%

3.0%

-3.6%

1.4%

1.6%

2.4%

2.5%

2.4%

2.4%

3.4%

2.0%

1.7%

2.3%

0.6%

2.1%

-6% -4% -2% 0% 2% 4% 6% 8% 10% 12%

BC Aggregate Bond Index

MSCI All-Country World Index

Fund of Funds

Hedge Fund Composite

Merger Arbitrage

Global Macro

Event Driven

Equity Market Neutral

Equity Hedge

Distressed Securities

Convertible Arbitrage

Q1

One

Year

Source: HFR Inc.

Hedge Funds Rise on Macro Trends and Corporate Activity

• Hedge Funds posted their best quarterly performance since the first quarter of

2013, with the HFRI Hedge Fund Composite Index returning 2.4%. All of the

Composites’ sub indices, with the exception of the HFRI Equity Hedge: Short

Biased Index, produced positive returns. Managers benefited from trends in

currency and commodity markets as well as continued merger and acquisition

activity.

• Global macro was again the top performing strategy in the first quarter with a return

of 3.4% as CTAs continued to lead the segment. CTAs benefited from trends in oil

and natural gas markets and long exposure to the U.S. dollar as the dollar

continued to appreciate relative to other major currencies. Long/short equity funds

outperformed the S&P 500 for the first time since the fourth quarter 2012.

Managers benefited from increased volatility in global equity markets and corporate

activity, specifically in the health care sector. Distressed was the worst performing

strategy during the quarter as exposure to European stressed and distressed credit

assets dampened results.

• Fund of hedge funds returned 2.5% during the quarter and saw net positive inflows

for the first time since the fourth quarter 2012. Fund of hedge funds managers

benefited from activist investments and sector focused funds, specifically health

care and technology managers.

• The hedge-fund industry saw inflows of $18.2 billion during the first quarter

according to Hedge Fund Research. According to eVestment, hedge fund assets

ended the quarter at a record $2.9 trillion.

Hedge Fund Assets and Flows

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Asse

ts (

$M

M)

Net Asset Flow Estimated Assets

84

NCREIF 3 Mon. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.

NCREIF 3.0% 11.8% 11.1% 12.1% 8.4%

Apartments 2.8% 10.3% 10.7% 13.1% 8.1%

Industrials 3.9% 13.4% 12.1% 12.1% 8.3%

Office 3.1% 11.5% 10.3% 11.3% 8.2%

Retail 2.7% 13.1% 12.5% 12.8% 9.2%

Hotel 4.3% 11.1% 9.0% 9.5% 7.0%

East 2.4% 9.3% 9.2% 9.3% 8.0%

Midwest 3.0% 11.4% 10.6% 10.7% 7.1%

South 3.2% 13.2% 12.2% 12.3% 8.6%

West 3.5% 13.6% 12.4% 13.2% 9.1%

20.1x18.7x17.3x

12.8x

Global U.S.

Capital Markets ReviewReal Assets

REIT Valuations Look Expensive

Brent Price Prospects Uncertainty Remains High

Real Estate Return as of December 31, 2014

Real Estate Performs Well; Commodities Prices Suffer

Source: Cohen & SteersSource: NCREIF

0.1%

5.1%

-7.3%

3.2%

Global U.S.

Price-to-NAV Price/Cash Flow Multiple

5.1%

Current 20 yr Average

Source: IMF, April 2015

Date: March 17, 2015

Brent Price Prospects Uncertainty Remains High• Private real estate returned 3.0% during the fourth quarter and 11.8% during 2014. By

sector, industrial properties experienced the best returns for the quarter and year. By

region, the West and South performed best both in the quarter and year. Low interest

rates and strong property fundamentals contributed to modestly declining cap rates

and property appreciation. During 2014, NCREIF properties appreciated 6.2% on

average. The income return for the year was 5.4% While the income return to real

estate has been declining, it exceeds the yield on core fixed income.

• Following a stellar 2014, U.S. REITs once again outperformed U.S. equities with a

4.8% first quarter return, compared to 1.0% for the S&P 500. Global REITs trailed U.S.

REITs, but still performed strongly with a 4.0% return. Improving European and

Japanese economies are leading to better property fundamentals, while high yields in

comparison to fixed income are attracting capital. Valuations on REITs, however, look

expensive, although yields remain attractive relative to fixed income.

• The Bloomberg Commodity Index declined 6.0% during the first quarter and 27.0%

during the trailing 12 months, led by energy, which returned -8.9% during the quarter

and -48.8% during the trailing 12 months. Rising production, growing stockpiles, and

falling demand have contributed to oil price declines. The Brent futures curve suggests

that oil prices will rise to about $70/barrel sometime in 2016 and about $78/barrel by

December 2020, which implies about a 10% annualized return to oil. One year ago,

the Brent futures curve predicted a decline in oil prices to about $100/barrel currently

and $90/barrel in 2020. Uncertainty, however, remains high. Metals and agricultural

commodities also have declined, but by less. Weaker demand from China has largely

affected metals prices while good weather and strong harvests have put downward

pressure on major crop prices.

85

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

0

5

10

15

20

25

30

35

40

Tota

l Offe

r Am

ount ($

,Billio

ns)

# o

f IP

Os

Venture-Backed IPOs # Venture-Backed IPOs $ Value

Venture-Backed IPO ActivityInvestment Horizon Pooled IRR (Preliminary as of 12/31/14)

Fund Type 3 Months 1 Year 3 Years 5 Years 10 Years 20 Years

Early Stage VC 17.0% 32.7% 23.3% 19.9% 11.4% 53.4%

Late/Expansion Stage VC 4.9% 10.4% 17.1% 20.7% 14.0% 15.5%

Multi-Stage VC 10.6% 20.8% 17.8% 14.2% 10.0% 15.5%

All Venture Capital 14.0% 27.0% 21.1% 18.2% 11.2% 34.5%

Small Buyouts 1.3% 7.2% 10.5% 13.6% 17.3% 13.9%

Medium Buyouts 2.8% 8.3% 13.7% 13.6% 17.7% 18.4%

Large Buyouts 2.3% 9.5% 13.6% 14.5% 15.8% 16.7%

Mega Buyouts 2.7% 11.4% 16.4% 15.1% 11.3% 11.6%

All Buyouts 2.6% 10.6% 15.4% 14.8% 13.4% 14.2%

Mezzanine/Sub Debt 1.0% 9.7% 12.5% 12.4% 10.7% 10.1%

Distressed 0.8% 6.7% 14.4% 11.9% 10.2% 11.4%

All Private Equity 2.3% 11.1% 14.9% 14.3% 12.6% 16.2%

MSCI AC World Index 0.5% 4.8% 15.1% 9.8% 6.7% 6.9%

Capital Markets ReviewPrivate Equity

Venture-Backed IPOs # Venture-Backed IPOs $ Value

$0

$20

$40

$60

$80

$100

$120

$140

$,B

illio

ns

VC Buyout Real Assets Secondary Funds Distressed/SS

Venture-backed IPO Activity Dips Following Banner Year in 2014

• Based on preliminary data as of December 31, 2014, the pooled IRR for all

private equity funds exceeded that of the MSCI All Country World Index by 180

basis points during the fourth quarter. For the 2014 calendar year, private

equity funds significantly outperformed global public equity markets. Venture

capital funds performed extremely well in 2014 boosted by a strong IPO

environment. Within the buyout space, large- and mega-cap buyout funds

outperformed their smaller counterparts for the year.

• Private equity fundraising dipped during the first quarter of 2015 compared to

the levels seen in 2014. In total, private equity funds raised approximately $89

billion during 1Q15, a decline of 13% from the prior quarter. However, that total

was just slightly below the amount raised during the same quarter last year and

well above the quarterly averages seen from 2010-2012.

• Venture-backed IPO activity dipped during 1Q15 after completing a banner

year in 2014, the most active year for IPOs since the dot-com bubble in 2000. A

total of 17 venture-backed IPOs with an aggregate offer amount of $1.4 billion

were completed in 1Q15, representing declines of 54% and 58%, respectively,

compared to 1Q14. Additionally, 1Q15 ended a string of seven consecutive

quarters with more than 20 IPOs and at least $2.2 billion in aggregate value.

Source: ThomsonOne/Cambridge Associates database, April 2015.Note: Data is continuously updated and is therefore subject to change.

MSCI AC World Index 0.5% 4.8% 15.1% 9.8% 6.7% 6.9%

Source: Thomson Reuters, ThomsonOne database, April 2015.

Source: Thomson Reuters & National Venture Capital Association, April 2015.

Global Fundraising

86

Quarter

YearTo

Date1

Year2

Years3

Years5

Years7

Years10

Years

Domestic Equity Indices

Dow Jones Wilshire 5000 1.6 1.6 12.2 17.2 16.2 14.5 9.3 8.4

S&P 500 1.0 1.0 12.7 17.2 16.1 14.5 8.9 8.0

Russell 1000 Index 1.6 1.6 12.7 17.5 16.4 14.7 9.3 8.3

Russell 1000 Growth Index 3.8 3.8 16.1 19.6 16.3 15.6 10.7 9.4

Russell 1000 Value Index -0.7 -0.7 9.3 15.3 16.4 13.8 7.7 7.2

Russell Midcap Index 4.0 4.0 13.7 18.5 18.1 16.2 11.2 10.0

Russell Midcap Growth Index 5.4 5.4 15.6 19.8 17.4 16.4 11.2 10.2

Russell Midcap Value Index 2.4 2.4 11.7 17.2 18.6 15.8 10.9 9.6

Russell 2000 Index 4.3 4.3 8.2 16.3 16.3 14.6 10.5 8.8

Russell 2000 Growth Index 6.6 6.6 12.1 19.4 17.7 16.6 11.9 10.0

Russell 2000 Value Index 2.0 2.0 4.4 13.2 14.8 12.5 8.9 7.5

International Equity Indices

MSCI EAFE 4.9 4.9 -0.9 7.9 9.0 6.2 1.6 4.9

MSCI EAFE Growth Index 5.8 5.8 1.1 7.8 9.0 7.0 2.1 5.6

MSCI EAFE Value Index 3.9 3.9 -2.9 8.1 9.0 5.3 1.0 4.2

MSCI EAFE Small Cap 5.6 5.6 -2.9 9.4 10.7 8.8 4.1 6.2

MSCI AC World Index 2.3 2.3 5.4 10.8 10.7 9.0 4.5 6.4

MSCI AC World ex US 3.5 3.5 -1.0 5.4 6.4 4.8 1.2 5.5

MSCI Emerging Markets Index 2.2 2.2 0.4 -0.5 0.3 1.7 0.6 8.5

Fixed Income Indices

Barclays U.S. Aggregate 1.6 1.6 5.7 2.8 3.1 4.4 4.7 4.9

Barcap Intermediate U.S. Government/Credit 1.4 1.4 3.6 1.7 2.3 3.5 3.8 4.3

Barclays U.S. Long Government/Credit 3.4 3.4 15.7 7.1 7.7 10.2 8.8 7.7

Barclays US Corp: High Yield 2.5 2.5 2.0 4.7 7.5 8.6 9.6 8.2

BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.0 0.1 0.1 0.3 1.5

Barclays U.S. TIPS 1.4 1.4 3.1 -1.8 0.6 4.3 3.6 4.6

Citigroup Non-U.S. World Government Bond -4.4 -4.4 -9.8 -3.9 -3.3 0.4 0.5 2.5

JPM EMBI Global Diversified (external currency) 2.0 2.0 5.6 3.1 5.4 7.1 7.6 8.1

JPM GBI-EM Global Diversified (local currency) -4.0 -4.0 -11.1 -9.2 -3.9 0.7 3.1 6.3

Real Asset Indices

Dow Jones - UBS Commodity -5.9 -5.9 -27.0 -15.5 -11.5 -5.7 -9.6 -3.6

Dow Jones Wilshire REIT 4.7 4.7 25.2 14.4 14.2 16.1 8.6 9.6

Capital Markets ReviewIndex ReturnsAs of March 31, 2015

(Percentage Return)

_________________________Returns for periods greater than one year are annualized.

87

Appendix

88

Date Decision

July 2011 El Camino retained Stratford Advisory Group, Inc. (Stratford) as investment consultant for its Surplus Cash Plan.

May 2012 Stratford and El Camino management and Investment Committee recommended and the Board approved the following asset allocation:

Asset Class Target Allocation Range

Domestic Equity 20% 17% to 23%

International Equity 10% 8% to 12%

Alternatives 20% 17% to 23%

Broad Fixed Income 40% 35% to 45%

Short Fixed Income 10% 8% to 12%

Total Fund 100% ---

September 2012 Stratford changed its name to Pavilion Advisory Group, Inc. (Pavilion).

Pavilion recommended, the Investment Committee reviewed, and management approved the following investment lineup:

AppendixSurplus Cash Summary of Investment Decisions


Manager Asset Class Target Allocation

Vanguard S&P 500 Index Domestic Equity 7.5%

Sands Large Cap Growth (Touchstone) Domestic Equity 3.75%

Barrow Hanley Large Cap Value Domestic Equity 3.75%

Cortina Small Cap Growth Domestic Equity 2.5%

Wellington Small Cap Value Domestic Equity 2.5%

Walter Scott Int'l (Dreyfus) International Equity 5.0%

Northern Cross Int'l (Harbor) International Equity 5.0%

Barrow Hanley Short Fixed Short Fixed Income 30%*

Dodge & Cox Fixed Broad Fixed Income 20.0%

MetWest Fixed Broad Fixed Income 20.0%

Total 100.0%

*20% of the allocation is an interim election until the alternatives portfolio construction methodology is determined.

October 2012 Management hired Citigroup to transition assets from Barrow Hanley Large Cap Value to Wellington Small Cap Value and Cortina Small Cap Growth.

Barrow Hanley Intermediate Duration Fixed Income and the Wells Capital Montgomery Fund were fully redeemed.

89

Date Decision

October 2012 The Citigroup equity transition was completed.

The following managers were funded:

Manager Amount Funded (millions)

Vanguard S&P 500 Index $37.3

Sands Large Cap Growth (Touchstone) $17.1

Cortina Small Cap Growth $11.4

Wellington Small Cap Value $11.4

Walter Scott Int'l (Dreyfus) $22.8

Northern Cross Int'l (Harbor) $23.0

Dodge & Cox Fixed $90.4

MetWest Fixed $91.1

November 2012 The following additional contributions were funded:





MetWest Fixed $5.0



Barrow Hanley Short Duration Fixed $5.0

December 2012 The following additional contributions were funded:


MetWest Fixed $2.8

Barrow Hanley Short Duration Fixed $5.1

90

Date Decision

January 2013 The following additional contributions were funded:



Barrow Hanley Large Cap Value $1.0



MetWest Fixed $2.4

February 2013 The Investment Committee recommended El Camino retain Pavilion for direct hedge fund advisory services.

The following additional contribution was funded:




March 2013 The following additional contribution was funded:


MetWest Fixed $1.6

May 2013 Eight hedge funds ($5 million each) were funded on May 1, 2013 for a total of $40 million.

July 2013 The remaining two hedge fund strategies ($5 million each) were funded on July 1, 2013 and August 1, 2013, respectively.

The Direct Hedge Fund portfolio became fully invested.

September 2013 $14.0 million was committed to the Oaktree Real Estate Opportunities Fund VI and $6.6 million was called in September.

$14.0 million was committed to the Walton Street Real Estate Fund VII.

October 2013 The following additional contributions were funded:


MetWest Fixed $7.6


Barrow Hanley Short Term Fixed - Non-District $3.0

91

Date Decision

November 2013 $1.1 million of the capital committed to the Walton Street Real Estate Fund VII was called in November.

December 2013 The Indus Japan Fund was funded with an initial contribution of $5.0 million.

An additional contribution of $1.5 million was made to the York Credit Opportunities Unit Trust.

An additional contribution of $1.5 million was made to the Fir Tree International Value Fund.

An additional contribution of $3.5 million was made to Barrow Hanley Short Term Fixed - District.

January 2014 The portfolio was rebalanced back towards target allocation with $16.0 million transferred out of domestic equity

and into a combination of international equity ($2.5 million) and short term fixed income ($13.5 million).

$1.4 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in January.

February 2014 $2.5 million was transferred from the Wellington Small Cap Value Fund to the Cash Account.



March 2014 $1.4 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in March.

$2.8 million of the capital committed to the Walton Street Real Estate Fund VII was called in March.

A distribution payment of $0.2 million was made by the Walton Street Real Estate Fund VII in March.

April 2014 $1.4 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in April.

$1.6 million was contributed to the Barrow Hanley - District Assets.

The following hedge funds were funded on April 1, 2014:


Marathon Special Opportunity Fund $5.5

Bloom Tree Offshore Fund $4.5

Tiger Eye Fund $4.5

Moore Macro Managers Fund $6.0

Pine River Fund $6.0

Additional contributions of $1.0 million were made to both Brevan Howard Multi-Strategy Fund and Robeco Transtrend Diversified Fund.

92

Date Decision

May 2014 $1.4 million of the capital committed to the Walton Street Real Estate Fund VII was called in May.

June 2014 The following additional contributions were funded:


Vanguard Institutional Index $2.0

Touchstone Sands $3.0

Barrow Hanley LCV $2.0

Dodge & Cox $5.0

MetWest $3.0

July 2014 $8.0 million was transferred from the Barrow Hanley - District account into the Surplus Cash Account.

October 2014 An additional contribution of $2.6 million was made to the Davidson Kempner Distressed Opportunities International Fund.


October 2014 An additional contribution of $2.6 million was made to the Davidson Kempner Distressed Opportunities International Fund.

November 2014 $0.8 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in November.

December 2014 $1.1 million of the capital committed to the Walton Street Real Estate Fund VII was called in December.

February 2015 $3.0 million of the capital committed to the Walton Street Real Estate Fund VII was called in February.

March 2015

$1.3 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in March.

The portfolio was rebalanced to newly initiated policy targets with $63.0 million transferred out of market duration fixed income ($29.0 million

redeemed from Dodge & Cox and $34.0 million redeemd from MetWest) and into domestic and international equity [$33.0 million contributed to

Vanguard Institutional Index, $15.0 million contributed to Walter Scott (Dreyfus), and $15.0 million contributed to Northern Cross (Harbor)].

$5.0 million was withdrawn from the Barrow Hanley Short-Term Fixed account with the proceeds used to fund an initial investment in Stone Milliner,

a macro hedge fund manager, as of April 1, 2015.

93

Date Decision

July 2011 El Camino retained Stratford Advisory Group, Inc. (Stratford) as investment consultant for its Cash Balance Plan.

May 2012 Stratford and El Camino management and Investment Committee recommended and the Board approved the following asset allocation:

Asset Class Target Allocation Range

Domestic Equity 32% 27% to 37%

International Equity 18% 15% to 21%

Alternatives 20% 17% to 23%

Broad Fixed Income 25% 20% to 30%

Short Fixed Income 5% 0% to 8%

Total Fund 100% ---

September 2012 Stratford changed its name to Pavilion Advisory Group, Inc. (Pavilion).

$5.6 million and $7.0 million employer contributions for Plan Year 2012 were made on September 13th and 14th, 2012, respectively.

AppendixCash Balance Plan Summary of Investment Decisions

$5.6 million and $7.0 million employer contributions for Plan Year 2012 were made on September 13th and 14th, 2012, respectively.


Manager Asset Class Target Allocation

Vanguard S&P 500 Index Domestic Equity 13.5%

Sands Large Cap Growth (Touchstone) Domestic Equity 6.75%

Barrow Hanley Large Cap Value Domestic Equity 6.75%

Cortina Small Cap Growth Domestic Equity 2.5%

Wellington Small Cap Value Domestic Equity 2.5%

Walter Scott Int'l (Dreyfus) International Equity 9.0%

Northern Cross Int'l (Harbor) International Equity 9.0%

Barrow Hanley Short Fixed Short Fixed Income 5.0%

Dodge & Cox Fixed Broad Fixed Income 12.5%

MetWest Fixed Broad Fixed Income 12.5%

Pointer* Hedge Fund of Funds 5.0%

Lighthouse Diversified Hedge Fund of Funds 5.0%

Oaktree Real Estate* Real Estate 5.0%

Walton Street* Real Estate 5.0%

Total 100.0%

*Barrow Hanley Short Fixed will be utilized as the interim holding for alternatives holdings that have not yet funded.

94

Date Decision

October 2012 A $2.7 million employer contribution for Plan Year 2012 was made on October 12, 2012.

Management hired Citigroup to transition assets from Dodge & Cox Large Cap Value to Barrow Hanley Large Cap Value and Cortina Small Cap Growth.

The Citigroup equity transition was completed.

The following managers were funded:




Barrow Hanley Large Cap Value $11.3







Barrow Hanley Short Fixed $19.4

MetWest Fixed $21.0

Lighthouse Diversified $8.4

December 2012 The following commitments were made:

Manager Amount Committed (millions)

Oaktree Real Estate Opps Fund VI $8.4

Walton Street Real Estate Fund VII $8.4

January 2013 The following managers were funded:


Pointer $8.4

Oaktree Real Estate Opps Fund VI $5.9

95

Date Decision

January 2013 A $2.7 million employer contribution for Plan Year 2012 was made on January 14, 2013.

April 2013 A $3.0 million employer contribution for Plan Year 2012 was made on April 12, 2013 to the following managers:

Manager Amount Contributed (millions)


MetWest Fixed $1.5

June 2013 Walton Street Real Estate was funded with an initial contribution of $0.8 million

July 2013 A $3.0 million employer contribution and $4.3 million transfer from the cash account was made to the Barrow Hanley Short-Term Fixed Fund.

October 2013 A $3.0 million employer contribution was made to Dodge & Cox ($1.5 million) and MetWest ($1.5 million).

January 2014 The portfolio was rebalanced, reducing equity exposure and distributing proceeds to fixed income and hedge fund of funds managers.


January 2014 The portfolio was rebalanced, reducing equity exposure and distributing proceeds to fixed income and hedge fund of funds managers.



March 2014 Distribution payments of $0.1 million were made by the Walton Street Real Estate Fund VII.

$1.7 million of the capital committed to the Walton Street Real Estate Fund VII was called in March.


April 2014 A $3.6 million employer contribution was made to the Barrow Hanley Short-Term Fixed account.

$0.8 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in April.

May 2014 $0.8 million of the capital committed to the Walton Street Real Estate Fund VII was called in May.

July 2014 A $3.6 million employer contribution was made on July 14, 2014.

August 2014 A $1.6 million contribution was made to the Lighthouse Diversified Fund.

96

Date Decision

October 2014

$2 million was transferred out of the Barrow Hanley Short-Term Fixed account and reallocated to the Pointer Offshore Fund.

November 2014 $0.5 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in November.

December 2014 $0.7 million of the capital committed to the Walton Real Estate Fund VII was called in December.

January 2015

February 2015 $1.8 million of the capital committed to the Walton Real Estate Fund VII was called in February.

A $3.6 million employer contribution was made in January with the proceeds split between the Vanguard Institutional Index Fund ($1.3

million), the Barrow Hanley Short-Term Fixed account ($0.3 million), and the Lighthouse Diversified Fund ($2.0 million).

A $3.6 million employer contribution was made in October with the proceeds split between Walter Scott (Dreyfus) ($0.9 million),

Northern Cross (Harbor) ($1.3 million), and Barrow Hanley Short-Term Fixed ($1.4 million).


February 2015 $1.8 million of the capital committed to the Walton Real Estate Fund VII was called in February.

March 2015 $0.8 million of the capital committed to the Oaktree Real Estate Opportunities Fund VI was called in March.

April 2015 A $3.6 million employer contribution was made in March with the proceeds split between Walter Scott (Dreyfus) ($0.7 million), Northern

Cross (Harbor) ($0.5 million), and Barrow Hanley Short-Term Fixed ($2.4 million).

97

Surplus Cash

Surplus Cash Total Benchmark

Beginning March 2015, the Surplus Cash Total Benchmark consists of 40% Total Equity Benchmark - Surplus, 30% Barclays Capital Aggregate, 10% Short Duration Fixed Income Benchmark - Surplus, and 20% Total

Alternatives Benchmark - Surplus. From April 2014 to February 2015, the Surplus Cash Total Benchmark consisted of 30% Total Equity Benchmark - Surplus, 40% Barclays Capital Aggregate, 10% Short Duration Fixed

Income Benchmark - Surplus, and 20% Total Alternatives Benchmark - Surplus. From August 2013 to March 2014, the Surplus Cash Total Benchmark consisted of 30% Total Equity Benchmark - Surplus, 40% Barclays

Capital Aggregate, 20% Short Duration Fixed Income Benchmark - Surplus, and 10% Total Alternatives Benchmark - Surplus. During July 2013, the Surplus Cash Total Benchmark consisted of 30% Total Equity

Benchmark - Surplus, 40% Barclays Capital Aggregate, 21% Short Duration Fixed Income Benchmark - Surplus, and 9% Total Alternatives Benchmark - Surplus. From May 2013 to June 2013, the Surplus Cash Total

Benchmark consisted of 30% Total Equity Benchmark - Surplus, 40% Barclays Capital Aggregate, 22% Short Duration Fixed Income Benchmark - Surplus, and 8% HFRI Fund of Funds Composite Index. From November

2012 to April 2013, the Surplus Cash Total Benchmark consists of 30% Total Equity Benchmark - Surplus and 70% Total Fixed Income Benchmark - Surplus. From January 2007 to October 2012, the Surplus Cash Total

Benchmark consisted of 15% Total Equity Benchmark - Surplus and 85% Total Fixed Income Benchmark - Surplus. From August 2000 to December 2006, the Surplus Cash Total Benchmark consisted of 2% Total Equity

Benchmark - Surplus and 98% Total Fixed Income Benchmark - Surplus. From April 1991 to July 2000, the Surplus Cash Total Benchmark consisted of 100% Total Fixed Income Benchmark - Surplus.

Surplus Cash Total Benchmark X Privates

Beginning March 2015 the Surplus Cash Total Benchmark consists of 42.1% Total Equity Benchmark - Surplus, 31.6% Barclays Capital Aggregate, 10.5% Short Duration Fixed Income Benchmark - Surplus, and 15.8%

Total Alternatives Benchmark - Surplus. From April 2014 to February 2015 the Surplus Cash Total Benchmark consisted of 31.6% Total Equity Benchmark - Surplus, 42.1% Barclays Capital Aggregate, 10.5% Short

Duration Fixed Income Benchmark - Surplus, and 15.8% Total Alternatives Benchmark - Surplus. From August 2013 to March 2014, the Surplus Cash Total Benchmark consisted of 30% Total Equity Benchmark - Surplus,

40% Barclays Capital Aggregate, 20% Short Duration Fixed Income Benchmark - Surplus, and 10% Total Alternatives Benchmark - Surplus. During July 2013, the Surplus Cash Total Benchmark consisted of 30% Total

Equity Benchmark - Surplus, 40% Barclays Capital Aggregate, 21% Short Duration Fixed Income Benchmark - Surplus, and 9% Total Alternatives Benchmark - Surplus. From May 2013 to June 2013, the Surplus Cash

Total Benchmark consisted of 30% Total Equity Benchmark - Surplus, 40% Barclays Capital Aggregate, 22% Short Duration Fixed Income Benchmark - Surplus, and 8% HFRI Fund of Funds Composite Index. From

November 2012 to April 2013, the Surplus Cash Total Benchmark consists of 30% Total Equity Benchmark - Surplus and 70% Total Fixed Income Benchmark - Surplus. From January 2007 to October 2012, the Surplus

Cash Total Benchmark consisted of 15% Total Equity Benchmark - Surplus and 85% Total Fixed Income Benchmark - Surplus. From August 2000 to December 2006, the Surplus Cash Total Benchmark consisted of 2%

Total Equity Benchmark - Surplus and 98% Total Fixed Income Benchmark - Surplus. From April 1991 to July 2000, the Surplus Cash Total Benchmark consisted of 100% Total Fixed Income Benchmark - Surplus.

Pre-Pavilion Surplus Cash Total Benchmark

Beginning January 2007, the Pre-Pavilion Surplus Cash Total Benchmark consists of 15% Total Equity Benchmark - Surplus and 85% Total Fixed Income Benchmark - Surplus. From August 2000 to December 2006, the

Pre-Pavilion Surplus Cash Total Benchmark consisted of 2% Total Equity Benchmark - Surplus and 98% Total Fixed Income Benchmark - Surplus. From April 1991 to July 2000, the Pre-Pavilion Surplus Cash Total

Benchmark consisted of 100% Total Fixed Income Benchmark - Surplus.

Total Equity Benchmark - Surplus

Beginning March 2015, the Total Equity Benchmark - Surplus consists of 50% Large Cap Equity Benchmark, 12.5% Small Cap Equity Benchmark, and 37.5% MSCI AC World ex USA (Net). From November 2012 to

February 2015, the Total Equity Benchmark - Surplus consisted of 50% Large Cap Equity Benchmark, 16.67% Small Cap Equity Benchmark, and 33.33% MSCI AC World ex USA (Net). From April 1991 to October

2012, the Total Equity Benchmark - Surplus consisted of 100% Large Cap Equity Benchmark.

Domestic Equity Benchmark - Surplus

Beginning March 2015, the Domestic Equity Benchmark - Surplus consists of 80% Large Cap Equity Benchmark and 20% Small Cap Equity Benchmark. From November 2012 to February 2015, the Domestic Equity

Benchmark - Surplus consisted of 75% Large Cap Equity Benchmark and 25% Small Cap Equity Benchmark. From April 1991 to October 2012, the Domestic Equity Benchmark - Surplus consisted of 100% Large Cap

Equity Benchmark.

AppendixBenchmark DescriptionsAs of March 31, 2015

98


Large Cap Equity Benchmark

Beginning November 2012, the Large Cap Equity Benchmark consists of 25% Russell 1000 Value Index, 25% Russell 1000 Growth Index, and 50% S&P 500 Index. From April 1991 to October 2012, the Large Cap Equity

Benchmark consisted of 100% Russell 1000 Value Index.

Small Cap Equity Benchmark

Beginning November 2012, the Small Cap Equity Benchmark consists of 50% Russell 2000 Growth Index and 50% Russell 2000 Value Index.

Total Fixed Income Benchmark - Surplus

Beginning March 2015, the Total Fixed Income Benchmark - Surplus consists of 75% Barclays Capital Aggregate and 25% Short Duration Fixed Income Benchmark - Surplus. From April 2014 to February 2015, the Total

Fixed Income Benchmark - Surplus consisted of 80% Barclays Capital Aggregate and 20% Short Duration Fixed Income Benchmark - Surplus. From August 2013 to March 2014, the Total Fixed Income Benchmark -

Surplus consisted of 66.67% Barclays Capital Aggregate and 33.33% Short Duration Fixed Income Benchmark - Surplus. During July 2013, the Total Fixed Income Benchmark - Surplus consisted of 65.57% Barclays

Capital Aggregate and 34.43% Short Duration Fixed Income Benchmark - Surplus. From May 2013 to June 2013, the Total Fixed Income Benchmark - Surplus consisted of 64.52% Barclays Capital Aggregate and

35.48% Short Duration Fixed Income Benchmark - Surplus. From November 2012 to April 2013, the Total Fixed Income Benchmark - Surplus consisted of 57.14% Barclays Capital Aggregate and 42.86% Short Duration

Fixed Income Benchmark - Surplus. From January 2007 to October 2012, the Total Fixed Income Benchmark - Surplus consisted of 40% Barclays Capital Aggregate and 60% Short Duration Fixed Income Benchmark -

Surplus. From April 1991 to December 2006, the Total Fixed Income Benchmark - Surplus consisted of 100% Short Duration Fixed Income Benchmark - Surplus.

Short Duration Fixed Income Benchmark - Surplus

Beginning in November 2012, the Short Duration Fixed Income Benchmark - Surplus consists of 100% Barclays Capital 1-3 Year Gov’t/Credit. From January 2007 to October 2012, the Short Duration Fixed Income

Benchmark - Surplus consisted of 66.67% Barclays Capital Intermediate Aggregate and 33.33% Barclays Capital Gov’t 1-3 Year. From May 2001 to December 2006, the Short Duration Fixed Income Benchmark - Surplus

consisted of 84.69% Barclays Capital Intermediate Aggregate and 15.31% Barclays Capital Gov’t 1-3 Year. From April 1991 to April 2001, the Short Duration Fixed Income Benchmark - Surplus consisted of 100%

Barclays Capital Gov’t 1-3 Year.

Total Alternatives Benchmark - Surplus

Beginning April 2014 the Total Alternatives Benchmark - Surplus consists of 75% HFRI Fund of Funds Composite Index and 25% NCREIF Property Index. From May 2013 to March 2014, the Total Alternatives

Benchmark - Surplus consisted of 100% HFRI Fund of Funds Composite Index.

99


Cash Balance Plan

Cash Balance Plan Total Benchmark

Beginning January 2013, the Cash Balance Plan Total Benchmark consists of 50% Total Equity Benchmark, 35% Total Fixed Income Benchmark, and 15% Alternatives Benchmark. From November 2012 to December

2012, the Cash Balance Plan Total Benchmark consisted of 50% Total Equity Benchmark, 45% Total Fixed Income Benchmark, and 5% Alternatives Benchmark. From October 1990 to October 2012, the Cash Balance

Plan Total Benchmark consisted of 60% Russell 1000 Value Index and 40% Barclays Capital Aggregate.

Cash Balance Plan Total X Privates Benchmark

Beginning January 2013, the Cash Balance Plan Total Benchmark consists of 52.63% Total Equity Benchmark, 36.84% Total Fixed Income Benchmark, and 10.53% Alternatives Benchmark. From November 2012 to

December 2012, the Cash Balance Plan Total Benchmark consisted of 50% Total Equity Benchmark, 45% Total Fixed Income Benchmark, and 5% Alternatives Benchmark. From October 1990 to October 2012

Pre-Pavilion Cash Balance Plan Total Benchmark

Beginning October 1990, the Cash Balance Plan Total Benchmark consists of 60% Russell 1000 Value Index and 40% Barclays Capital Aggregate.

Total Equity Benchmark

Beginning November 2012, the Total Equity Benchmark consists of 54% Large Cap Equity Benchmark, 10% Small Cap Equity Benchmark, and 36% MSCI AC World ex USA (Net). From October 1990 to October 2012,

the Total Equity Benchmark consisted of 100% Large Cap Equity Benchmark.

Domestic Equity Benchmark

Beginning November 2012, the Domestic Equity Benchmark consists of 84.38% Large Cap Equity Benchmark and 15.62% Small Cap Equity Benchmark. From October 1990 to October 2012, the Domestic Equity

Benchmark consisted of 100% Large Cap Equity Benchmark.

Large Cap Equity Benchmark

Beginning November 2012, the Large Cap Equity Benchmark consists of 25% Russell 1000 Value Index, 25% Russell 1000 Growth Index, and 50% S&P 500 Index. From October 1990 to October 2012, the Large Cap

Equity Benchmark consisted of 100% Russell 1000 Value Index.

Small Cap Equity Benchmark

Beginning November 2012, the Small Cap Equity Benchmark consists of 50% Russell 2000 Growth Index and 50% Russell 2000 Value Index.

Total Fixed Income Benchmark

Beginning January 2013, the Total Fixed Income Benchmark consists of 71.43% Barclays Capital Aggregate and 28.57% Short Duration Fixed Income Benchmark. From November 2012 to December 2012, the Total Fixed

Income Benchmark consists of 55.56% Barclays Capital Aggregate and 44.44% Short Duration Fixed Income Benchmark. From October 1990 to October 2012, the Total Fixed Income Benchmark consisted of 100%

Barclays Aggregate.

Short Duration Fixed Income Benchmark

Beginning November 2012, the Short Duration Fixed Income Benchmark consists of 100% Barclays Capital 1-3 Year Gov’t/Credit. From October 1990 to October 2012, the Short Duration Fixed Income Benchmark

consisted of 100% 90 Day U.S. Treasury Bills.

100


Total Alternatives Benchmark

Beginning January 2013, the Alternatives Benchmark consists of 66.67% HFRI Fund of Funds Composite Index and 33.33% NCREIF Property Index. From November 2012 to December 2012, the Alternatives Benchmark

consisted of 100% HFRI Fund of Funds Composite Index.

101

Performance(%)

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Total Surplus Cash X District 4.4 8.8 6.6 5.1 6.4 11.3 -1.2 6.3 6.0 1.5

Total Surplus Cash Benchmark 5.3 7.5 6.0 5.2 7.3 7.7 -2.0 6.0 4.8 2.1

Pre-Pavilion Total Surplus Cash Benchmark 5.5 3.4 5.3 5.2 7.3 7.7 -2.0 6.0 4.8 2.1

Total Surplus Cash X District X Privates 4.0 8.8 6.6 5.1 6.4 11.3 -1.2 6.3 6.0 1.5

Surplus Cash Total Benchmark x Privates 5.3 7.5 6.0 5.2 7.3 7.7 -2.0 6.0 4.8 2.1

Total Equity Composite 4.4 28.8 17.7 2.3 10.8 23.7 -35.3 1.9 14.6 10.0

Total Equity Benchmark - Surplus 6.1 27.7 19.0 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1

Domestic Equity Composite 9.0 36.7 16.3 2.3 10.8 23.7 -35.3 1.9 14.6 10.0

Domestic Equity Benchmark - Surplus 11.4 34.3 17.8 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1

Large Cap Equity Composite 12.2 35.1 16.5 2.3 10.8 23.7 -35.3 1.9 14.6 10.0

Large Cap Equity Benchmark 13.5 32.7 17.1 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1

Small Cap Equity Composite -0.9 41.2 N/A N/A N/A N/A N/A N/A N/A N/A

Small Cap Equity Benchmark 5.0 38.9 16.3 -4.2 26.8 27.5 -33.8 -1.7 18.4 4.4

International Equity Composite -5.6 13.0 N/A N/A N/A N/A N/A N/A N/A N/A

MSCI AC World ex USA (Net) -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 26.7 16.6

AppendixSurplus Cash Calendar Year Composite PerformanceAs of March 31, 2015


102

AppendixSurplus Cash Calendar Year Composite PerformanceAs of March 31, 2015

Performance(%)

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Total Fixed Income Composite 4.3 -0.3 4.4 5.5 5.8 7.6 4.1 6.8 5.6 1.7

Total Fixed Income Benchmark - Surplus 4.7 -1.1 3.2 5.8 5.5 5.2 5.4 7.0 4.5 2.0

Short Duration Fixed Income Composite 0.6 0.5 3.5 4.3 4.8 5.3 4.5 6.8 5.6 1.7

Short Duration Fixed Income Benchmark - Surplus 0.8 0.6 2.5 4.5 4.9 4.8 5.5 7.0 4.5 2.0

Market Duration Fixed Income Composite 5.8 -0.6 6.9 8.8 8.1 12.6 2.5 6.9 N/A N/A

Barclays U.S. Aggregate 6.0 -2.0 4.2 7.8 6.5 5.9 5.2 7.0 4.3 2.4

Alternatives Composite 5.1 N/A N/A N/A N/A N/A N/A N/A N/A N/A

Total Alternatives Benchmark -Surplus 6.1 9.6 N/A N/A N/A N/A N/A N/A N/A N/A

Real Estate Composite 22.8 N/A N/A N/A N/A N/A N/A N/A N/A N/A

NCREIF Property Index 11.8 11.0 10.5 14.3 13.1 -16.8 -6.5 15.8 16.6 20.1

Hedge Fund Composite 2.2 N/A N/A N/A N/A N/A N/A N/A N/A N/A

HFRI Fund of Funds Composite Index 3.4 9.0 4.8 -5.7 5.7 11.5 -21.4 10.3 10.4 7.5


103

Performance(%)

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Total Cash Balance Plan 5.6 15.8 17.0 -0.9 11.7 28.2 -25.9 2.4 12.6 6.0

Total Cash Balance Plan Benchmark 5.7 13.8 12.7 3.7 12.4 14.8 -22.0 2.8 14.8 5.3

Pre-Pavilion Total Cash Balance Plan Benchmark 10.5 17.7 12.2 3.7 12.4 14.8 -22.0 2.8 14.8 5.3

Total Cash Balance Plan X Private Structures 4.8 16.2 17.0 -0.9 11.7 28.2 -25.9 2.4 12.6 6.0

Cash Balance Plan Total X Privates Benchmark 5.3 14.0 12.7 3.7 12.4 14.8 -22.0 2.8 14.8 5.3

Total Equity Composite 4.6 27.7 23.3 -3.9 14.2 33.0 -43.0 0.3 19.5 9.7

Total Equity Benchmark 6.2 26.9 18.9 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1

Domestic Equity Composite 10.2 36.3 21.5 -3.9 14.2 33.0 -43.0 0.3 19.5 9.7

Domestic Equity Benchmark 12.2 33.7 17.5 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1

Large Cap Equity Composite 12.3 35.4 21.8 -3.9 14.2 33.0 -43.0 0.3 19.5 9.7

Large Cap Equity Benchmark 13.5 32.7 17.1 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1

Small Cap Equity Composite -0.9 41.1 N/A N/A N/A N/A N/A N/A N/A N/A

Small Cap Equity Benchmark 5.0 38.9 16.3 -4.2 26.8 27.5 -33.8 -1.7 18.4 4.4

International Equity Composite -5.3 13.0 N/A N/A N/A N/A N/A N/A N/A N/A

MSCI AC World ex USA (Net) -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 26.7 16.6

AppendixCash Balance Plan Calendar Year Composite PerformanceAs of March 31, 2015


104

AppendixCash Balance Plan Calendar Year Composite PerformanceAs of March 31, 2015

Performance(%)

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Total Fixed Income Composite 4.3 0.6 7.0 6.4 7.8 17.6 -0.3 4.9 5.4 2.3

Total Fixed Income Benchmark 4.5 -1.3 4.3 7.8 6.5 5.9 5.2 7.0 4.3 2.4

Short Duration Fixed Income Composite 0.5 0.6 0.2 N/A N/A N/A N/A N/A N/A N/A

Short Duration Fixed Income Benchmark 0.8 0.6 0.2 0.1 0.1 0.2 2.1 4.9 4.8 2.9

Market Duration Fixed Income Composite 5.7 0.6 8.0 5.4 7.8 17.6 -0.3 4.9 5.4 2.3

Barclays U.S. Aggregate 6.0 -2.0 4.2 7.8 6.5 5.9 5.2 7.0 4.3 2.4

Total Alternatives Composite 13.1 11.4 N/A N/A N/A N/A N/A N/A N/A N/A

Total Alternatives Benchmark 6.1 9.6 N/A N/A N/A N/A N/A N/A N/A N/A

Hedge Fund of Fund Composite 8.8 13.3 N/A N/A N/A N/A N/A N/A N/A N/A

HFRI Fund of Funds Composite Index 3.4 9.0 4.8 -5.7 5.7 11.5 -21.4 10.3 10.4 7.5

Real Estate Composite 23.9 5.0 N/A N/A N/A N/A N/A N/A N/A N/A

NCREIF Property Index 11.8 11.0 10.5 14.3 13.1 -16.8 -6.5 15.8 16.6 20.1


105

Att 6c - Hedge Fund - Q1.pdf

Separator Page

Pavilion Advisory Group® is a registered trademark of Pavilion Financial Corporation used under license by Pavilion Advisory Group Ltd. in Canada and by Pavilion Advisory Group Inc. in the United States. © 2015 Pavilion Advisory Group Ltd. and Pavilion Advisory Group Inc. All rights reserved

Stone Milliner Asset Management LLP Stone Milliner Macro Fund Inc.

GLOBAL MACRO HEDGE FUND

FEBRUARY 2015

ALTERNATIVE INVESTMENTS RESEARCH NOTE

EXECUTIVE SUMMARY

Stone Milliner was founded by co-CIOs Jens-Peter Stein and Kornelius Klobucar in 2011. Both men joined Moore Capital Europe in 2006 as senior portfolio managers and operated from offices in Switzerland. They ran and continue to run a fund of one called JPS Moore LP through which the Moore Macro Managers Fund (MMMF) invests. By 2009, the JPS Moore Fund became the largest allocation in MMMF which effectively capped asset growth despite no capacity constraints for the strategy. While keeping the JPS fund active, Moore allowed the team to launch their own commingled hedge fund, which commenced operations in January 2012. With $1 billion total AUM at launch (including Moore’s fund capital), the spin out was one the highest profile launches since the financial crisis. Moore does not have an equity stake in Stone Milliner; however, it participates in the net profits generated by the firm by way of a five-year profit share agreement (of which two years are remaining).

AUM as of January 1, 2015 was $3.1 billion. The Moore JPS fund of one represents 41% of net assets or approximately $1.3 billion with the Fund master feeder structure holding the rest. In addition, Moore seeded the Fund at inception and currently owns approximately $276 million. A soft close of the Fund is expected once total firm assets reach approximately $4 billion. At the fund level, Moore is the largest investor (15.6%), with the firm’s second largest investor is U.S.-based (14.8% of net assets); the 3rd largest investor is Caisse de Dépôt et Placement du Québec (CDP, 10.4%). The overall investor base is biased towards fund of hedge funds (50% of net assets) and pension funds (20%), with firm partners holding 4%.

Performance has been strong: the JPS fund delivered a CAGR of 7.6% from 2006-2011 and a CAGR of 11.2% (net) for the Fund since inception in 2012 to December 2014. Downside risk management has been exceptional with a standard deviation of 6.1% and a maximum drawdown of 4.0%. The Fund also exhibited low correlation to other asset classes and major indices.

The investment strategy is 100% discretionary, directional global macro with main exposures in liquid G10 FX and fixed income markets. The Fund implements three to four top-down themes, with specific portfolio manager bottom-up themes. The Fund invests in both developed and developing markets.

Given the Moore heritage, the risk management framework is robust. Stone Milliner has implemented a two-tiered risk and return limit at both the Fund and portfolio level. Tier 1 limits (VaR of 2.5% and peak-to-trough PM drawdown of 5%) require escalation to the firm’s Chief Risk Officer, Adnan Chishti, who chairs the Risk Committee comprised of 7 individuals. Tier 2 risk limits (PM VaR of 2% and peak-to-trough PM drawdown of 3%) are set and monitored by the two co-CIOs. Overall, Stone Milliner is a high quality macro fund and the focus on FX is well suited for the environment.

POSITIVES NEGATIVES

Solid performance: CAGR of 11.2% (net) since inception with low downside risk, a standard deviation of 6.1% and a Sharpe ratio of 1.3.

Excellent portfolio liquidity matched by redemption terms (monthly with 60 days’ notice).

Exceptional transparency. Investors are provided with a 6 weeks lagged full portfolio.

Focus on FX is well suited for the environment.

Historically Moore has acted as middle office and IT provider for Stone Milliner. However a decoupling has been initiated whereby, from February 1, 2015, SS&C GlobeOp will provide outsourced middle / back office and fund administration services to Stone Milliner, replacing Moore and the current fund administrator (Citco). This is a positive move and we are monitoring the transition.

RECOMMENDATION

Approved for all clients.

Continue to monitor.

Strategy inception January 2012 Firm / strategy AUM $3.1 billion / $1.8 billion (January 1, 2015)

Pavilion Advisory Group® is a registered trademark of Pavilion Financial Corporation used under license by Pavilion Advisory Group Ltd. in Canada and by Pavilion Advisory Group Inc. in the United States. © 2015 Pavilion Advisory Group Ltd. and Pavilion Advisory Group Inc. All rights reserved.


TEAM STRUCTURE AND KEY PROFESSIONALS

Stone Milliner has five equity partners. Jens-Peter and Kornelius each own 38.5% of Stone Milliner, with Chris Nicoll, Partner and Senior Portfolio Manager, and Peter Murray, Partner (Business Development), both based in London, owning 10% each. A non-executive member and Fund Director, Paul Kimball, owns the remaining 2.5%.

The firm operates with 38 individuals (including the five partners), with 24 and 14 based in London (where it shares space with Moore) and Zug (Switzerland), respectively. The two co-CIOs are based in Zug. The two co-CIOs are based in Zug, while investment professionals are spread between the two locations. Overall, there are 6 PMs and two execution traders in each location. The business and back office teams are largely based in London. In the near term, Stone Milliner plans to hire three individuals to assist with operations/treasury tasks.

KEY INVESTMENT PROFESSIONALS

Jens-Peter Stein — Stone Milliner Asset Management AG, Partner and Co-Chief Investment Officer, 2012 to Present — Moore Europe Capital Management, Senior Portfolio Manager, 2006 to 2011 — Morgan Stanley, Managing Director (Various positions: Global Head / FX Trading and Fixed Income Macro trading

group, Global Head / FX Trading and FX Proprietary group, and Head of Spot / Forward trading), 2000 to 2005 — TCC Geneva, Portfolio Manager / Head of Trading, 1998, — Morgan Stanley, Head of Spot / Forward Trading, 1992 to 1998. — Commerzbank, Various Positions: Chief Dealer FX / money market, Chief Dealer / FX, Spot and Options, 1983 to 1992 — Hamburg Banking Institute, 1980 to 1982

Kornelius Klobucar — Stone Milliner Asset Management AG, Partner and Co-Chief Investment Officer, 2012 to Present — Moore Europe Capital Management, Senior Portfolio Manager, 2006 to 2011 — Morgan Stanley, Senior Trader, 2000 to 2006 — Citibank, Trading Manager and Trader/Market Maker, 1993 to 2000 — Goethe University (Frankfurt), Economics, 1991 to 1993

Chris Nicoll — Stone Milliner Asset Management LLP, Partner and Senior Portfolio Manager, 2012 to Present — Moore Europe Capital Management, Portfolio Manager, 2008 to 2010 and 2011 — Morgan Stanley, Managing Director / European Head of FX/Emerging Markets Trading, 2010 to 2011 — Morgan Stanley, Managing Director / FX Trading Manager, 1995 to 2008 — Commerzbank, FX Trader, 1986 to 1995 — Standard Chartered Bank, FX Trader, 1984 to 1986 — Institute of Banking examinations, City and East London College, Economics / Accounting, 1984 to 1986

KEY BUSINESS PROFESSIONALS

Adam Grant — Stone Milliner Asset Management LLP, Chief Financial Officer/Chief Operating Officer, 2012 to Present — RAB Capital Plc, CFO/COO, 2009 to 2011 — Execution Noble (Espirito Santo Investment Bank), Finance Director, 2006 to 2009 — Morgan Stanley, Various positions, 1987 to 2006



— University of Bath, BSc. Business Administration, 1979 to 1983

Thomas Fecker Boxler — Stone Milliner Asset Management LLP, Regional COO/CFO, 2012 to Present — Credit Suisse Investment Bank, CCO (FX Trading), 2009 to 2011 — Kraus Partners Investment Solutions, Partner & COO/CFO, 2006 to 2009 — Credit Suisse Asset Management, Senior Business Analyst, 2004 to 2006 — UBS Investment Bank, FX division, 1995 to 2004 — University of Bern, Executive MBA — University of Rochester, MBA — Lucerne University of Applied Sciences and Arts, Business Administration

INVESTMENT PROCESS

The investment strategy is 100% discretionary, directional global macro, with only very small exposure to micro relative value strategies. The Fund owns, on average, 550 portfolio line items, with main exposures in liquid G10 FX and fixed income markets. The Fund invests in both developed and developing markets and is also diversified by asset class and time horizon.

Stone Milliner follows a multi-PM approach in which individual PMs are responsible for implementing their investment ideas under the oversight of the co-CIOs, Mr. Stein and Mr. Klobucar. The Fund implements three to four top-down themes, with specific portfolio manager bottom-up themes. Trades are driven by a combination of fundamental macro-economic research and technical analysis. Notably, the firm pays a lot of attention to market positioning and how optionality ownership is spread across investors.

The portfolio typically has 70% exposure to foreign exchange with the remaining 30% in interest rates. Equities do not play a meaningful role in the portfolio, with a maximum of 15% of net assets investable in equity indices only. The portfolio is long vega and gamma, but never outright short volatility.

Given the Moore heritage, the risk management framework is robust. Stone Milliner has implemented a two-tiered risk and return limit at both the Fund and portfolio level. Tier 1 limits (VaR of 2.5% and peak-to-trough PM drawdown of 5%) require escalation to the firm’s Chief Risk Officer, Adnan Chishti, who chairs the Risk Committee comprised of 7 individuals. Tier 2 risk limits (PM VaR of 2% and peak-to-trough PM drawdown of 3%) are set and monitored by the two co-CIOs.



OPERATIONAL DUE DILIGENCE HIGHLIGHTS

Business team: Adam Grant is the firm’s CFO/COO/UK CCO. Additionally, the Zug (Switzerland) office has a regional COO/CFO, Thomas Fecker Boxler, reporting to Mr. Grant. Adnan Chishti is the Chief Risk Officer. There are six individuals in the middle office/operations/IT team, one in legal/compliance, two in client services, and two in project management.

Outsourced middle/back office arrangement: Since inception, through an operation services agreement, Moore Capital has provided middle/back office and other services (such as IT) to Stone Milliner. The agreement was taken to save on costs at launch; however, given the increase in AUM and under investor pressure to separate from Moore, Stone Milliner is moving to a more “standard” servicing model on February 1, 2015. The firm appointed SS&C GlobeOp to take over the combined roles played by Moore and the current fund administrator, Citco Fund Services. Following a two- to three-month parallel run, SS&C GlobeOp will become the outsourced middle/back office provider and fund administrator for Stone Milliner and the Fund. This is a positive move which will reduce ties with Moore. Additionally, over time, Stone Milliner will increase internal shadowing of trading/accounting books and records from its current role as “reviewer”, as the firm currently does not make use of a portfolio management or accounting system internally.

IT and Disaster Recovery: Stone Milliner leverages its relationship with Moore and utilizes MCM’s VPLS wide-area network connectivity to its Zug and London offices. Systems and network equipment are located at a third party data center co-location facility in Zurich (Equinix) and at the Stone Milliner offices in London. Going forward, from summer 2015, it is expected that Stone Milliner will select a new outsourced IT provider and move away from Moore. All Stone Milliner data on the Moore platform is currently stored and replicated on the Moore SAN platform in 10-minute intervals to the Moore disaster recovery site in Greenford (UK). The BCP/DR Plan was last reviewed in August 2014 and tests were conducted in London concurrently with Moore.

Internal capital: Internal capital from partners and employees represented 4% of total AUM or approximately $67 million. It was noted that Jens Peter redeemed approximately $3 million in 2014 to settle a divorce claim.

Regulation: The firm is regulated by the UK FCA and is an exempt reporting adviser with the US SEC and an NFA member. The Swiss management company has applied for a license with FINMA, the Swiss regulator, and is awaiting a response.

Asset controls: All asset transfers from the Fund’s accounts are subject to a dual signatory policy where two individuals must sign off on any transfer, such as investor redemptions or expense payments.

Valuation: Stone Milliner’s valuation policy is only available for review onsite, which is an odd policy given that 99% of managers typically provide this electronically. The firm has elected not to form a valuation committee for three reasons: 1) the firm feels there is good third party price coverage 2) Stone Milliner does not price any positions and 3) the Fund’s Board would be involved in pricing any instruments without third party pricing coverage. As a matter of best practice, we would prefer Stone Milliner to have a valuation committee which would be involved in setting valuation policies, select pricing hierarchy for each instrument type and dealing with the Fund’s board should any security require additional pricing coverage. This is an area of improvement for the firm. Currently, Moore is responsible for pricing the portfolio on a daily basis, subject to review from Citco. The valuation complexity is currently low.



Fund administrator: While a final administration agreement had yet to be finalized with the new fund administrator, SS&C GlobeOp, most services and production timelines were set, with the new administrator performing connectivity testing with Moore’s systems to initiate the parallel servicing phase set to start on February 1, 2015. Given the removal of a “layer” (i.e. Moore) in the final NAV production process, SS&C GlobeOp believes the final NAV will be issued to investors within ten business days following month-end. As a comparison, the current timeline is closer to 20 business days with the Moore/Citco setup, which is a significant improvement. There appears to be some disagreement between Stone Milliner and SS&C GlobeOp, the latter believing that the transition would take much less time to complete than the former’s three-month estimate. We deem it prudent to hold any client allocation until this transition is well underway and we are assured that no material issue has occurred in the process.



FEES AND TERMS

Management Fee 2% of net assets per annum (Class A)

Incentive Fee 20% per annum (Class A)

Minimum Investment $1 million

Valuation Monthly

Subscriptions Monthly

Redemptions Monthly with 60 days’ written notice

Lock-up Period -

Entry/Exit Fees 25% fund level redemption gate

Advisory Fee -

High Water Mark Yes (with no reset feature)

SERVICE PROVIDERS

Fund Administrator Citco Fund Services (Cayman Islands) Limited

From February 1, 2015: SS&C GlobeOp Financial Services Limited

Auditor Ernst & Young LLP

Prime Brokers / Custodians

Credit Suisse Securities (USA) LLC, Citibank, N.A. London Branch (FX), Deutsche Bank AG (Derivatives Clearing Merchant)

Legal Counsel Dechert LLP (English and U.S.) Mourant Ozannes (Cayman Islands)

RISK AND RETURN HISTORY

See attached performance sheets.

CalendarYearReturns

StoneMillinerMacroFund L.P.

HFN HedgeFundAggregateIndex

BarclaysGlobalAggregateUnhedged

MSCIWorld‐ND

HFNMacroIndex

2014 14.4 3.6 0.6 4.9 2.6

2013 11.2 9.5 ‐2.6 26.7 1.3

2012 8.1 6.6 4.3 15.8 3.1

2011 ‐1.6 ‐5.0 5.6 ‐5.5 ‐3.1

2010 5.9 10.6 5.5 11.8 8.5

2009 4.6 19.4 6.9 30.0 10.2

2008 14.3 ‐15.7 4.8 ‐40.7 ‐1.7

2007 15.2 10.6 9.5 9.0 11.5

2006 8.0 12.0 6.6 20.1 10.5

AnnualizedReturns




MSCIWorld‐ND

HFNMacroIndex

1 Year 14.4 3.6 0.6 4.9 2.6

2 Years 12.8 6.5 ‐1.0 15.3 1.9

3 Years 11.2 6.6 0.7 15.5 2.3

5 Years 7.4 4.9 2.6 10.2 2.4

SinceInception

8.8 5.2 4.5 5.7 4.6

StatisticalAnalysis




MSCIWorld‐ND

HFNMacroIndex

CumulativeReturn

112.9 58.4 49.1 64.0 50.3

Best Period 6.1 5.1 6.2 11.2 3.8

WorstPeriod

‐2.4 ‐6.0 ‐3.8 ‐19.0 ‐1.9

PositivePeriods

68.0 69.0 66.0 64.0 65.0

NegativePeriods

40.0 39.0 42.0 44.0 43.0

Returns ‐ Stone Milliner Macro Fund L.P.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

2014 1.85% ‐0.70% 0.69% ‐1.24% 0.80% ‐1.27% 1.75% 0.94% 4.92% 2.92% 1.58% 1.45% 14.39%

2013 5.23% ‐0.39% ‐0.29% 2.60% 4.21% 0.29% ‐2.38% ‐0.02% ‐1.20% ‐0.40% 2.91% 0.35% 11.16%

2012 0.01% 1.37% 0.94% ‐0.85% 0.90% ‐1.11% ‐0.60% ‐0.30% 1.75% 1.27% 1.68% 2.79% 8.05%

2011 ‐0.83% 0.33% ‐0.48% 0.50% ‐1.16% ‐0.06% 0.02% ‐0.30% 0.55% ‐0.49% ‐0.03% 0.35% ‐1.60%

2010 ‐0.34% 0.03% 1.06% 0.96% 2.33% ‐0.06% ‐0.61% ‐0.57% 0.79% 0.53% 1.34% 0.32% 5.89%

2009 1.91% 1.30% ‐0.03% 0.22% 0.48% ‐0.31% 0.98% ‐0.45% 1.30% 0.19% ‐0.26% ‐0.79% 4.60%

2008 2.37% 6.08% 0.59% ‐0.19% 3.74% 0.44% ‐1.25% 0.12% 0.09% 1.87% ‐0.95% 0.79% 14.33%

2007 ‐0.74% 0.95% ‐0.10% 0.06% 1.82% 0.95% 1.58% ‐1.13% 2.93% 5.06% 3.10% ‐0.11% 15.15%

2006 ‐0.71% ‐0.65% 1.55% 1.37% 1.36% 0.49% 0.59% ‐0.72% ‐0.21% 0.92% 3.24% 0.54% 7.97%

Pavilion Advisory Group™ is a trademark of Pavilion Financial Corporation used under license by Pavilion Advisory Group Ltd. in Canada and by Pavilion Advisory Group Inc. in the United States.© 2015 Pavilion Advisory Group Ltd. and Pavilion Advisory Group Inc. All rights reserved.

Stone Milliner Macro Fund L.P.Global Macro Hedge Fund December 31, 2014

Returns are shown in USD net of fees. Returns from January 1, 2006 to December 31, 2011 are from JPS Moore, LP, the vehicle ran by the co‐founders while at Moore.

1 of 2

Risk Stone MillinerMacro Fund L.P.

HFN Hedge FundAggregate Index

Barclays GlobalAggregateUnhedged

MSCIWorld‐ND

HFNMacroIndex

StandardDeviation

5.2 6.0 5.8 16.7 4.0

Sharpe Ratio 1.4 0.7 0.6 0.3 0.8

Sortino Ratio 4.1 1.0 0.9 0.4 1.5

Max Drawdown 4.0 17.7 10.1 54.0 6.7

Max DrawdownLength

4.0 16.0 7.0 16.0 4.0

Max DrawdownRecovery Period

3.0 13.0 9.0 53.0 7.0

Gain/Loss Ratio 2.5 1.1 1.1 0.9 1.5

Skewness 1.2 ‐0.8 ‐0.1 ‐0.9 0.3

Kurtosis 1.9 2.1 0.9 2.2 0.0

Comparisonto Benchmark

Stone MillinerMacro Fund L.P.

HFN Hedge FundAggregate Index

Barclays GlobalAggregateUnhedged

MSCIWorld‐ND

HFNMacroIndex

Alpha 7.5 ‐0.4 1.6 ‐4.8 0.0

Beta 0.3 1.2 0.7 2.6 1.0

Correlation 0.2 0.8 0.5 0.6 1.0

R‐Squared 0.0 0.7 0.2 0.4 1.0

Tracking Error 5.9 3.6 5.4 14.5 0.0

InformationRatio

0.7 0.2 0.0 0.1 ‐‐‐

Up MarketCapture

72.8 123.2 72.4 242.2 100.0

Down MarketCapture

‐73.6 130.2 43.6 315.5 100.0

VaR @ 95% ‐2.4 ‐3.9 ‐3.4 ‐10.3 ‐1.8

Pavilion Advisory Group™ is a trademark of Pavilion Financial Corporation used under license by Pavilion Advisory Group Ltd. in Canada and by Pavilion Advisory Group Inc. in the United States.© 2015 Pavilion Advisory Group Ltd. and Pavilion Advisory Group Inc. All rights reserved.

Stone Milliner Macro Fund L.P.Global Macro Hedge Fund December 31, 2014

Returns are shown in USD net of fees. Returns from January 1, 2006 to December 31, 2011 are from JPS Moore, LP, the vehicle ran by the co‐founders while at Moore.

2 of 2

Att 6c.2 - 1Q15 El Camino Direct Hedge Fund Book.pdf

Separator Page

Surplus CashHedge FundPortfolio

El Camino Hospital

1st Quarter 2015

Pavilion Advisory Group Inc.227 W. Monroe Street, Suite 2020Chicago, IL 60606Phone: 312-798-3200Fax: 312-902-1984www.pavilioncorp.com

Portfolio Update - First Quarter 2015The Hedge Fund Portfolio returned +2.6% during the first quarter, outperforming the HFRI Fund of Funds Composite Index by 10 basis points.Since its initial funding the Portfolio has returned +5.6%, slightly outperforming its benchmark, which returned +5.5%. The Portfolio’s credit,relative value and macro managers have outperformed since its initial funding while the equity composite has trailed its benchmark modestly. Theslight underperformance in the equity composite should be expected given the lower net exposure of El Camino’s managers versus the much highernet exposure of the average manager in the benchmark.

During the first quarter, the Hedge Fund Portfolio’s equity and macro strategies were standout performers. All of the Funds in the equity strategy,with the exception of Luxor, produced positive results with seven of the nine managers strongly outperforming. Notable contributors within thesegment included Capeview 2x (+8.8%) and Passport 2x (+8.9%). Capeview benefited from strong stock selection within the consumer andfinancial sectors. Within the consumer sector, Capeview benefited from its exposure to home builders in the UK, while positions in ING and CreditAgricole aided performance in financials. Passport’s technology, basic materials, and energy sectors combined to add approximately 410 basispoints. The Portfolio’s macro composite returned 4.3% compared to 3.3% for the HFRI Macro (Total) Index. Transtrend, the Portfolio’s CTAmanager, was the top performing Fund within the strategy. The manager benefited from strong results in its equity and FX trading programs.

The portfolio’s credit and relative value managers underperformed during the quarter. Davidson Kempner (-0.8%) and Marathon (-0.6%) werenotable laggards within the credit strategy. Davidson Kempner’s exposure to Greek Government Bonds and TXU dampened results, whileMarathon’s losses can primarily be attributed to its distressed and high yield energy positions. Carlson trailed its benchmark by approximately 150basis points during the first quarter. The Fund’s equity relative value segment trailed as the segment's energy portfolio managers delivered negativeresults.

Investment ActivityOn April 1, 2015, El Camino initiated a $5.0 million investment in macro manager Stone Milliner Macro, Inc.

Recommendations or Action ItemsNo recommendations at this time.

Hedge Fund Portfolio Executive Summary

1

Allocation

MarketValue

($) %

Performance(%)

Quarter

YearTo

Date1

Year3

Years5

YearsSince

InvestedInception

Period

Hedge Fund Composite 101,228,189 100.0 2.6 2.6 3.8 N/A N/A 5.6 1y 11m

HFRI Fund of Funds Composite Index 2.5 2.5 5.4 5.4 3.5 5.5

Credit HF Composite 20,642,484 20.4 0.1 0.1 -3.5 N/A N/A 6.6 1y 11m

HFRI ED: Distressed/Restructuring Index 1.0 1.0 -3.2 6.1 5.6 3.8

Equity HF Composite 36,783,404 36.3 3.8 3.8 3.6 N/A N/A 6.1 1y 11m

HFRI Equity Hedge (Total) Index 2.1 2.1 2.8 6.1 4.7 6.5

Macro HF Composite 24,952,162 24.6 4.3 4.3 14.2 N/A N/A 4.2 1y 11m

HFRI Macro (Total) Index 3.3 3.3 9.4 2.5 2.4 3.3

Relative Value HF Composite 18,850,139 18.6 1.6 1.6 2.4 N/A N/A 5.7 1y 11m

HFRI RV: Multi-Strategy Index 2.2 2.2 4.2 6.0 5.3 4.5

Asset Allocation & PerformanceEl Camino Hedge Fund PortfolioAs of March 31, 2015

2

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Retu

rn (%

)

0.0 0.7 1.4 2.1 2.8 3.5 4.2 4.9 5.6 6.3 7.0 7.7 8.0


HFRI RV: Multi-Strategy Index

HFRI Macro (Total) Index

HFRI ED: Distressed/Restructuring Index

HFRI Equity Hedge (Total) Index


El Camino Relative Value HF Composite

El Camino Macro HF Composite

El Camino Equity HF Composite

El Camino Credit HF Composite


Performance SummaryHedge Fund Composite Risk and Return Summary (Net of Fees)3 Years Ending March 31, 2015

After May 1, 2013, results are actual El Camino Hedge Fund Portfolio returns.

3

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Retu

rn (%

)

0.0 0.7 1.4 2.1 2.8 3.5 4.2 4.9 5.6 6.3 7.0 7.7 8.0







El Camino Relative Value HF Composite

El Camino Macro HF Composite

El Camino Equity HF Composite El Camino Credit HF Composite


Performance SummaryHedge Fund Composite Risk and Return Summary (Net of Fees)5 Years Ending March 31, 2015

4

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

20.0

Retu

rn (%

)

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0




HFRI Macro: Systematic Diversified Index




Stone Milliner

Fir Tree

Pine River Fund Ltd.

Carlson

Brevan Howard

Moore Macro Managers Fund

Robeco Transtrend

Indus Japan Fund Ltd.

Tiger Eye Fund, Ltd.

Bloom Tree Offshore Fund Ltd.

ESG

Capeview 1x

Capeview 2x

Passport 2x

Passport 1x

Luxor

York

Marathon Special Opportunity Fund Ltd.

Davidson Kempner

Risk and ReturnHedge Fund Managers Risk Return (Net of Fees)3 Years Ending March 31, 2015


5

-4.0

-1.0

2.0

5.0

8.0

11.0

14.0

17.0

20.0

Retu

rn (%

)

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0





HFRI Equity Hedge (Total) IndexHFRI ED: Distressed/Restructuring Index

Stone Milliner

Fir Tree


Carlson

Brevan Howard


Robeco Transtrend




ESG Capeview 1x

Capeview 2x

Luxor

York


Davidson Kempner

Risk and ReturnHedge Fund Managers Risk Return (Net of Fees)5 Years Ending March 31, 2015


6

5YearsReturn

5Years

StandardDeviation

5Years

MaximumDrawdown

5YearsBest

Quarter

5YearsWorst

Quarter

5Years

SharpeRatio

5Years

SortinoRatio

Total Portfolio

Hedge Fund Composite 6.8 4.5 -6.3 6.0 -4.6 1.5 1.6

HFRI Fund of Funds Composite Index 3.5 4.0 -7.7 4.0 -5.0 0.9 0.8

Equity Long/Short

El Camino Equity HF Composite 7.4 4.6 -3.1 9.1 -2.7 1.6 2.2

HFRI Equity Hedge (Total) Index 4.7 7.5 -13.2 7.9 -10.9 0.6 0.6

Credit

El Camino Credit HF Composite 7.6 7.3 -12.4 9.6 -10.4 1.0 0.8

HFRI ED: Distressed/Restructuring Index 5.6 5.2 -8.7 5.6 -7.8 1.1 0.9

Macro

El Camino Macro HF Composite 4.1 6.3 -7.4 7.9 -4.8 0.7 0.7

HFRI Macro (Total) Index 2.4 4.4 -8.0 6.8 -2.9 0.5 0.7

Relative Value

El Camino Relative Value HF Composite 7.6 5.9 -8.7 6.9 -7.4 1.3 1.2

HFRI RV: Multi-Strategy Index 5.3 3.0 -4.6 4.8 -3.0 1.7 1.7

El Camino Hedge Fund Portfolio Risk Statistics

As of March 31, 2015


7


Equity Hedge Funds

ESG Emerging Market Equity

Luxor Event Driven Equity

CapeView 1x European Equity


Asset Class DiversificationHedge Fund PortfolioAs of March 31, 2015


Passport 1x US Equity

Passport 2x US Equity

Bloom Tree Global Equity

Tiger Eye US Equity

Indus Japan Japanese Equity

Credit Hedge Funds

Davidson Kempner Distressed Credit

York Multi-Strategy Credit

Marathon Multi-Strategy Credit

Macro Hedge Funds

Brevan Howard Discretionary Macro

Moore Discretionary MacroMoore Discretionary Macro

Stone Milliner¹ Discretionary Macro

Transtrend Systematic Macro

Relative Value Hedge Funds

Carlson Multi-Strategy

Fir Tree Multi-Strategy

Pine River Multi-Strategy

Total Hedge Fund Portfolio

Totals may not add up due to rounding.¹Fund added on April 1, 2015.

Total Assets

($, mil.)

Percent of

Total

Target

Allocation

Weighting

Relative to

Target

$ 36.8 36.3% 40.0% - 3.7%

$ 5.0 4.9%

$ 4.9 4.9%

$ 2.9 2.8%

$ 3.3 3.3%$ 3.3 3.3%

$ 2.5 2.5%

$ 2.5 2.5%

$ 4.9 4.8%

$ 4.9 4.9%

$ 5.8 5.7%

$ 20.6 20.4% 20.0% + 0.4%

$ 8.2 8.1%

$ 7.3 7.2%

$ 5.2 5.1%

$ 24.9 24.6% 20.0% + 4.6%

$ 6.2 6.1%

$ 6.5 6.4%$ 6.5 6.4%

$ 5.0 4.9%

$ 7.3 7.2%

$ 18.8 18.6% 20.0% - 1.4%

$ 5.5 5.5%

$ 7.1 7.0%

$ 6.3 6.2%

$101.2 100.0%

8

Quarter

YearTo

Date1

Year3

Years5

YearsSince

Invested 2014 2013 2012 2011 2010 2009Inception

Period

Total Portfolio

Hedge Fund Composite 2.6 2.6 3.8 7.5 6.8 5.6 2.2 14.0 9.9 -0.9 11.4 19.7 1y 11m

HFRI Fund of Funds Composite Index 2.5 2.5 5.4 5.4 3.5 5.5 3.4 9.0 4.8 -5.7 5.7 11.5

Equity Long/Short

El Camino Equity HF Composite 3.8 3.8 3.6 8.2 7.4 6.1 -0.4 20.6 7.7 0.0 11.3 16.8 1y 11m

HFRI Equity Hedge (Total) Index 2.1 2.1 2.8 6.1 4.7 6.5 1.8 14.3 7.4 -8.4 10.5 24.6

ESG Cross Border Equity Offshore Fund, Ltd. 1.6 1.6 -5.3 2.8 6.2 0.0 -7.0 13.4 6.7 9.3 11.0 7.9 1y 11m

Luxor Capital Partners Offshore, Ltd. -1.9 -1.9 -12.1 0.4 1.0 -0.8 -8.4 16.1 1.7 -3.2 4.6 43.9 1y 11m

Capeview Azri Fund 4.2 4.2 7.7 8.1 7.2 8.1 4.6 11.4 5.8 1.3 12.8 8.7 1y 9m

Capeview Azri 2X Fund 8.8 8.8 16.8 17.3 15.6 17.5 9.8 24.4 12.7 4.3 26.9 18.0 1y 9m

Passport Long Short Fund, Ltd. 4.9 4.9 -2.0 6.8 N/A 0.9 -5.7 19.8 12.1 -7.2 N/A N/A 1y 8m

Passport Long Short Fund, Ltd. 2x 8.9 8.9 -5.0 13.4 N/A 1.1 -11.1 43.4 24.4 -14.5 N/A N/A 1y 8m

Bloom Tree Offshore Fund Ltd. 4.0 4.0 9.1 9.4 11.1 9.1 3.0 12.8 13.7 23.7 5.8 9.1 1y

Tiger Eye Fund, Ltd. 4.4 4.4 9.3 18.5 15.2 9.3 3.9 37.7 17.7 5.6 10.1 N/A 1y

Indus Japan Fund Ltd. 4.6 4.6 19.0 17.1 11.2 11.2 6.3 45.0 8.1 -1.6 8.1 8.6 1y 4m

Credit

El Camino Credit HF Composite 0.1 0.1 -3.5 9.5 7.6 6.6 2.8 18.6 16.2 -2.1 10.8 42.6 1y 11m

HFRI ED: Distressed/Restructuring Index 1.0 1.0 -3.2 6.1 5.6 3.8 -1.4 14.0 10.1 -1.8 12.1 28.1

DK Distressed Opportunities International, Ltd. -0.8 -0.8 -3.6 9.8 7.2 7.2 3.2 21.7 13.5 -2.4 10.2 46.2 1y 11m

Marathon Special Opportunity Fund Ltd. -0.6 -0.6 -5.5 8.3 5.9 -5.5 -2.8 19.6 16.5 -4.8 9.1 43.8 1y

York Credit Opportunities Unit Trust 1.6 1.6 -1.8 9.8 8.2 6.9 3.4 15.6 18.9 -1.8 11.4 38.8 1y 11m

Pro Forma Performance Summary


_________________________Returns are expressed as percentages. Returns for periods greater than one year are annualized.Peer group percentile ranks are shown in parenthesis.After May 1, 2013, results are actual El Camino Hedge Fund Portfolio returns.Returns for Passport Long Short Fund, Ltd. 2x prior to January 2013 represent Passport Long Short Fund, Ltd., returns for CapeView Azri 2x Fund prior toOctober 2010 represent CapeView Azri Fund, and returns for Robeco Transtrend Diversified Fund, LLC prior to April 2008 represent Transtrend DiversifiedTrend Program Enhanced Risk (USD) Fund.

9

Pro Forma Performance Summary


Quarter

YearTo

Date1

Year3

Years5

YearsSince

Invested 2014 2013 2012 2011 2010 2009Inception

Period

Macro

El Camino Macro HF Composite 4.3 4.3 14.2 4.4 4.1 4.2 7.7 0.7 3.4 -2.9 10.4 0.6 1y 11m

HFRI Macro (Total) Index 3.3 3.3 9.4 2.5 2.4 3.3 5.6 -0.4 -0.1 -4.2 8.1 4.3

Brevan Howard Multi-Strategy Fund Limited 3.4 3.4 6.9 3.1 4.1 1.1 1.8 0.8 5.3 6.0 2.3 17.4 1y 11m

Moore Macro Managers Fund 3.1 3.1 7.6 9.2 7.5 7.6 5.4 13.4 8.9 -2.6 11.6 17.1 1y

Stone Milliner Macro Inc 4.9 4.9 17.8 12.1 8.3 1.7 14.3 11.2 8.1 -1.6 5.9 4.6 0y 1m

Robeco Transtrend Diversified Fund LLC 6.2 6.2 28.7 7.5 5.0 10.3 18.9 0.6 1.2 -11.3 18.6 -14.1 1y 11m

Relative Value

El Camino Relative Value HF Composite 1.6 1.6 2.4 7.5 7.6 5.7 1.6 12.7 14.3 0.2 13.1 24.9 1y 11m

HFRI RV: Multi-Strategy Index 2.2 2.2 4.2 6.0 5.3 4.5 3.4 7.9 8.2 -2.4 13.2 24.7

Double Black Diamond, Ltd. Series E 0.6 0.6 2.9 6.9 5.6 5.5 4.9 8.1 11.6 -2.2 9.5 28.3 1y 11m

Fir Tree International Value Fund (Non-US), L.P. 2.0 2.0 0.4 7.7 9.2 5.3 -2.1 17.2 16.9 2.4 16.7 21.1 1y 11m

Pine River Fund Ltd. 1.9 1.9 4.2 10.4 10.8 4.2 4.7 9.7 21.7 5.7 13.9 91.0 1y

_________________________Returns are expressed as percentages. Returns for periods greater than one year are annualized.Peer group percentile ranks are shown in parenthesis.After May 1, 2013, results are actual El Camino Hedge Fund Portfolio returns.Returns for Passport Long Short Fund, Ltd. 2x prior to January 2013 represent Passport Long Short Fund, Ltd., returns for CapeView Azri 2x Fund prior toOctober 2010 represent CapeView Azri Fund, and returns for Robeco Transtrend Diversified Fund, LLC prior to April 2008 represent Transtrend DiversifiedTrend Program Enhanced Risk (USD) Fund.

10

Hedge Fund ManagerPerformance

11


Comparative Performance and Rolling Return Risk and Return (Jan-2004 - Mar-2015)

Historical Statistics (Jan-2004 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

ESG Cross Border Equity Offshore Fund, Ltd. 1.6 1.6 -5.3 2.8 6.2 7.2 -7.0 13.4 6.7 9.3 11.0 7.9 -21.2 21.0 14.8 35.1

HFRI Equity Hedge (Total) Index 2.1 2.1 2.8 6.1 4.7 4.8 1.8 14.3 7.4 -8.4 10.5 24.6 -26.7 10.5 11.7 10.6

MSCI Emerging Markets Index 2.3 2.3 0.8 0.7 2.1 8.8 -1.8 -2.3 18.6 -18.2 19.2 79.0 -53.2 39.8 32.6 34.5


0.0

10.0

20.0

30.0

-10.0

-20.0

Ac

tive

Re

turn

(%)

3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 3/15 -5.0

0.0

5.0

10.0

15.0

20.0

Re

turn

(%)



ESG Cross Border Equity Offshore Fund, Ltd.



SharpeRatio

TrackingError

InformationRatio


InceptionDate

ESG Cross Border Equity Offshore Fund, Ltd. 9.9 8.9 8.5 7.4 0.5 1.0 8.7 0.5 5.2 54.8 11y 3m

HFRI Equity Hedge (Total) Index 5.0 8.3 3.8 0.0 1.0 0.5 0.0 N/A 5.8 0.0 11y 3m


Manager EvaluationESG Cross Border Equity Offshore Fund, Ltd. vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

12




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Luxor Capital Partners Offshore, Ltd. -1.9 -1.9 -12.1 0.4 1.0 7.0 -8.4 16.1 1.7 -3.2 4.6 43.9 -29.0 79.3 -1.4 6.9


DJ Credit Suisse Event Driven Index 1.6 1.6 0.3 7.8 5.2 6.4 1.6 15.5 10.6 -9.1 12.6 20.4 -17.7 13.2 15.7 8.9


0.0

15.0

30.0

45.0

-15.0

-30.0

Ac

tive

Re

turn

(%)

6/02 9/03 12/04 3/06 6/07 9/08 12/09 3/11 6/12 9/13 3/15 -5.0

0.0

5.0

10.0

15.0

20.0

Re

turn

(%)

4.0 6.0 8.0 10.0 12.0 14.0 16.0Risk (Standard Deviation %)


Luxor Capital Partners Offshore, Ltd.



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Luxor Capital Partners Offshore, Ltd. 11.2 12.3 10.0 7.3 0.8 0.8 10.6 0.6 7.7 55.1 13y

HFRI Equity Hedge (Total) Index 5.3 8.1 4.1 0.0 1.0 0.5 0.0 N/A 5.6 0.0 13y


Manager EvaluationLuxor Capital Partners Offshore, Ltd. vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

13


Comparative Performance and Rolling Return Risk and Return (Nov-2007 - Mar-2015)

Historical Statistics (Nov-2007 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Capeview Azri Fund 4.2 4.2 7.7 8.1 7.2 N/A 4.6 11.4 5.8 1.3 12.8 8.7 10.5 N/A N/A N/A


MSCI Europe Index 3.6 3.6 -4.4 10.0 7.0 5.5 -5.7 26.0 19.9 -10.5 4.5 36.8 -46.1 14.4 34.4 9.9


0.0

10.0

20.0

30.0

-10.0

-20.0

Ac

tive

Re

turn

(%)

3/08 12/08 9/09 6/10 3/11 12/11 9/12 6/13 3/14 3/15 -12.0

-6.0

0.0

6.0

12.0

18.0

Re

turn

(%)



Capeview Azri Fund



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Capeview Azri Fund 8.7 3.6 8.0 8.6 0.1 2.3 9.3 0.7 1.3 48.3 7y 5m



Manager EvaluationCapeview Azri Fund vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

14


Comparative Performance and Rolling Return Risk and Return (Jul-2010 - Mar-2015)

Historical Statistics (Jul-2010 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Capeview Azri 2X Fund 8.8 8.8 16.8 17.3 15.6 N/A 9.8 24.4 12.7 4.3 26.9 18.0 21.8 N/A N/A N/A


MSCI Europe Index 3.6 3.6 -4.4 10.0 7.0 5.5 -5.7 26.0 19.9 -10.5 4.5 36.8 -46.1 14.4 34.4 9.9


0.0

8.0

16.0

-8.0

-16.0

Ac

tive

Re

turn

(%)

9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 -10.0

0.0

10.0

20.0

30.0

Re

turn

(%)



Capeview Azri 2X Fund



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Capeview Azri 2X Fund 16.4 6.8 15.4 14.6 0.3 2.3 8.3 1.1 2.7 63.2 4y 9m



Manager EvaluationCapeview Azri 2X Fund vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

Prior to October 2010, returns respresent CapeView Azri Fund, Ltd. multiplied by 2.

15


Comparative Performance and Rolling Return Risk and Return (Jun-2010 - Mar-2015)

Historical Statistics (Jun-2010 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Passport Long Short Fund, Ltd. 4.9 4.9 -2.0 6.8 N/A N/A -5.7 19.8 12.1 -7.2 N/A N/A N/A N/A N/A N/A


MSCI AC World Index 2.4 2.4 6.0 11.3 9.6 7.0 4.7 23.4 16.8 -6.9 13.2 35.4 -41.8 12.2 21.5 11.4


0.0

5.0

10.0

-5.0

-10.0

Ac

tive

Re

turn

(%)

9/10 3/11 9/11 3/12 9/12 3/13 9/13 3/14 9/14 3/15 2.0

4.0

6.0

8.0

10.0

Re

turn

(%)



Passport Long Short Fund, Ltd.



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Passport Long Short Fund, Ltd. 7.3 8.1 7.3 4.9 0.5 0.9 8.4 0.2 4.9 48.3 4y 10m



Manager EvaluationPassport Long Short Fund, Ltd. vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

16




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Passport Long Short Fund, Ltd. 2x 8.9 8.9 -5.0 13.4 N/A N/A -11.1 43.4 24.4 -14.5 N/A N/A N/A N/A N/A N/A




0.0

10.0

20.0

-10.0

-20.0

Ac

tive

Re

turn

(%)

3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 3/15 -8.0

0.0

8.0

16.0

24.0

32.0

Re

turn

(%)



Passport Long Short Fund, Ltd. 2x



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Passport Long Short Fund, Ltd. 2x 15.7 13.3 15.5 13.4 0.4 1.2 13.5 0.6 7.8 63.0 2y 3m



Manager EvaluationPassport Long Short Fund, Ltd. 2x vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

Prior to January 2013, returns represent Passport Long Short Fund, Ltd. multiplied by 2.

17


Comparative Performance and Rolling Return Risk and Return (May-2008 - Mar-2015)

Historical Statistics (May-2008 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Bloom Tree Offshore Fund Ltd. 4.0 4.0 9.1 9.4 11.1 N/A 3.0 12.8 13.7 23.7 5.8 9.1 N/A N/A N/A N/A




0.0

15.0

30.0

-15.0

-30.0

Ac

tive

Re

turn

(%)

9/08 6/09 3/10 12/10 9/11 6/12 3/13 12/13 9/14 3/15 -6.0

0.0

6.0

12.0

18.0

Re

turn

(%)






SharpeRatio

TrackingError

InformationRatio


InceptionDate

Bloom Tree Offshore Fund Ltd. 9.8 10.0 9.6 9.7 0.2 1.0 12.5 0.5 5.8 60.2 6y 11m



Manager EvaluationBloom Tree Offshore Fund Ltd. vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

18




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Tiger Eye Fund, Ltd. 4.4 4.4 9.3 18.5 15.2 N/A 3.9 37.7 17.7 5.6 10.1 N/A N/A N/A N/A N/A


Russell 3000 Index 1.8 1.8 12.4 16.4 14.7 8.4 12.6 33.6 16.4 1.0 16.9 28.3 -37.3 5.1 15.7 6.1


0.0

10.0

20.0

30.0

-10.0

-20.0

Ac

tive

Re

turn

(%)

6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 6/13 12/13 6/14 3/15 0.0

6.0

12.0

18.0

24.0

Re

turn

(%)






SharpeRatio

TrackingError

InformationRatio


InceptionDate

Tiger Eye Fund, Ltd. 14.9 7.3 14.2 10.4 0.5 2.0 7.1 0.8 2.8 63.9 6y

HFRI Equity Hedge (Total) Index 8.3 7.8 8.2 0.0 1.0 1.1 0.0 N/A 4.6 0.0 6y


Manager EvaluationTiger Eye Fund, Ltd. vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

19


Comparative Performance and Rolling Return Risk and Return (Dec-2000 - Mar-2015)

Historical Statistics (Dec-2000 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Indus Japan Fund Ltd. 4.6 4.6 19.0 17.1 11.2 8.3 6.3 45.0 8.1 -1.6 8.1 8.6 -9.1 -6.5 3.8 30.8


MSCI Japan Index 10.3 10.3 12.4 9.6 6.1 3.7 -3.7 27.3 8.4 -14.2 15.6 6.4 -29.1 -4.1 6.3 25.6


0.0

8.0

16.0

24.0

-8.0

-16.0

Ac

tive

Re

turn

(%)

3/01 6/02 9/03 12/04 3/06 6/07 9/08 12/09 3/11 6/12 9/13 3/15 0.0

5.0

10.0

15.0

Re

turn

(%)






SharpeRatio

TrackingError

InformationRatio


InceptionDate

Indus Japan Fund Ltd. 8.9 10.1 7.4 5.9 0.6 0.7 9.3 0.4 5.8 54.1 14y 4m



Manager EvaluationIndus Japan Fund Ltd. vs. HFRI Equity Hedge (Total) IndexAs of March 31, 2015

20




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

DK Distressed Opportunities International, Ltd. -0.8 -0.8 -3.6 9.8 7.2 10.2 3.2 21.7 13.5 -2.4 10.2 46.2 -22.8 6.0 29.1 N/A

HFRI ED: Distressed/Restructuring Index 1.0 1.0 -3.2 6.1 5.6 5.5 -1.4 14.0 10.1 -1.8 12.1 28.1 -25.2 5.1 15.9 8.3

Barclays Global High Yield Index 0.6 0.6 -2.2 6.4 7.9 8.2 0.0 7.3 19.6 3.1 14.8 59.4 -26.9 3.2 13.7 3.6


0.0

6.0

12.0

18.0

-6.0

-12.0

Ac

tive

Re

turn

(%)

6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 0.0

5.0

10.0

15.0

20.0

Re

turn

(%)



DK Distressed Opportunities International, Ltd.



SharpeRatio

TrackingError

InformationRatio


InceptionDate

DK Distressed Opportunities International, Ltd. 10.2 9.7 8.7 3.6 1.2 0.9 5.7 0.8 5.5 59.2 10y

HFRI ED: Distressed/Restructuring Index 5.5 6.6 4.2 0.0 1.0 0.6 0.0 N/A 4.7 0.0 10y


Manager EvaluationDK Distressed Opportunities International, Ltd. vs. HFRI ED: Distressed/Restructuring IndexAs of March 31, 2015

21


Comparative Performance and Rolling Return Risk and Return (Feb-2001 - Mar-2015)

Historical Statistics (Feb-2001 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

York Credit Opportunities Unit Trust 1.6 1.6 -1.8 9.8 8.2 11.3 3.4 15.6 18.9 -1.8 11.4 38.8 -14.6 25.8 19.0 8.5




0.0

8.0

16.0

24.0

-8.0

-16.0

Ac

tive

Re

turn

(%)

6/01 9/02 12/03 3/05 6/06 9/07 12/08 3/10 6/11 9/12 12/13 3/15 -10.0

0.0

10.0

20.0

30.0

Re

turn

(%)



York Credit Opportunities Unit Trust



SharpeRatio

TrackingError

InformationRatio


InceptionDate

York Credit Opportunities Unit Trust 16.1 8.7 13.8 6.3 1.1 1.6 5.3 1.4 4.5 67.1 14y 2m

HFRI ED: Distressed/Restructuring Index 8.3 6.2 6.6 0.0 1.0 1.1 0.0 N/A 4.0 0.0 14y 2m


Manager EvaluationYork Credit Opportunities Unit Trust vs. HFRI ED: Distressed/Restructuring IndexAs of March 31, 2015

22


Comparative Performance and Rolling Return Risk and Return (May-1999 - Mar-2015)

Historical Statistics (May-1999 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Marathon Special Opportunity Fund Ltd. -0.6 -0.6 -5.5 8.3 5.9 6.1 -2.8 19.6 16.5 -4.8 9.1 43.8 -30.1 4.0 13.3 14.1




0.0

10.0

20.0

30.0

-10.0

-20.0

Ac

tive

Re

turn

(%)

9/99 3/01 9/02 3/04 9/05 3/07 9/08 3/10 9/11 3/13 3/15 0.0

5.0

10.0

15.0

20.0

25.0

Re

turn

(%)

4.0 6.0 8.0 10.0 12.0 14.0Risk (Standard Deviation %)





SharpeRatio

TrackingError

InformationRatio


InceptionDate

Marathon Special Opportunity Fund Ltd. 14.0 10.1 11.7 5.1 1.1 1.2 7.7 0.7 5.1 59.2 15y 11m

HFRI ED: Distressed/Restructuring Index 8.3 6.1 6.1 0.0 1.0 1.0 0.0 N/A 3.9 0.0 15y 11m


Manager EvaluationMarathon Special Opportunity Fund Ltd. vs. HFRI ED: Distressed/Restructuring IndexAs of March 31, 2015

23


Comparative Performance and Rolling Return Risk and Return (Mar-2008 - Mar-2015)

Historical Statistics (Mar-2008 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Brevan Howard Multi-Strategy Fund Limited 3.4 3.4 6.9 3.1 4.1 N/A 1.8 0.8 5.3 6.0 2.3 17.4 N/A N/A N/A N/A

HFRI Macro (Total) Index 3.3 3.3 9.4 2.5 2.4 4.6 5.6 -0.4 -0.1 -4.2 8.1 4.3 4.8 11.1 8.2 6.8

DJ Credit Suisse Global Macro Index 4.5 4.5 8.4 5.0 6.7 7.9 3.1 4.3 4.6 6.4 13.5 11.5 -4.6 17.4 13.5 9.2


0.0

5.0

10.0

15.0

-5.0

-10.0

Ac

tive

Re

turn

(%)

6/08 3/09 12/09 9/10 6/11 3/12 12/12 9/13 6/14 3/15 -2.5

0.0

2.5

5.0

7.5

10.0

Re

turn

(%)

4.4 4.5 4.6 4.7Risk (Standard Deviation %)


Brevan Howard Multi-Strategy Fund Limited



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Brevan Howard Multi-Strategy Fund Limited 4.6 4.6 4.3 3.6 0.5 0.9 4.6 0.5 2.7 57.6 7y 1m

HFRI Macro (Total) Index 2.2 4.5 2.0 0.0 1.0 0.4 0.0 N/A 2.7 0.0 7y 1m


Manager EvaluationBrevan Howard Multi-Strategy Fund Limited vs. HFRI Macro (Total) IndexAs of March 31, 2015

24




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Robeco Transtrend Diversified Fund LLC 6.2 6.2 28.7 7.5 5.0 8.9 18.9 0.6 1.2 -11.3 18.6 -14.1 25.3 27.9 16.3 12.1

HFRI Macro: Systematic Diversified Index 4.8 4.8 17.9 4.1 3.6 7.2 10.7 -0.9 -2.5 -3.5 9.8 -1.7 18.1 10.3 16.8 14.4

DJ Credit Suisse Managed Futures Index 7.3 7.3 32.7 6.5 4.8 5.6 18.4 -2.6 -2.9 -4.2 12.2 -6.6 18.3 6.0 8.1 -0.1


0.0

6.0

12.0

-6.0

-12.0

Ac

tive

Re

turn

(%)

6/08 3/09 12/09 9/10 6/11 3/12 12/12 9/13 6/14 3/15 0.0

2.0

4.0

6.0

8.0

Re

turn

(%)



Robeco Transtrend Diversified Fund LLC



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Robeco Transtrend Diversified Fund LLC 5.3 12.2 5.7 0.9 1.4 0.5 7.4 0.3 7.6 53.6 7y

HFRI Macro: Systematic Diversified Index 3.5 7.4 3.4 0.0 1.0 0.5 0.0 N/A 4.4 0.0 7y


Manager EvaluationRobeco Transtrend Diversified Fund LLC vs. HFRI Macro: Systematic Diversified IndexAs of March 31, 2015

Prior to April 2008, returns represent Transtrend Diversified Trend Program Enhanced Risk (USD) Fund.

25


Comparative Performance and Rolling Return Risk and Return (Aug-1993 - Mar-2015)

Historical Statistics (Aug-1993 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Moore Macro Managers Fund 3.1 3.1 7.6 9.2 7.5 9.1 5.4 13.4 8.9 -2.6 11.6 17.1 0.4 14.4 6.2 15.5

HFRI Macro (Total) Index 3.3 3.3 9.4 2.5 2.4 4.6 5.6 -0.4 -0.1 -4.2 8.1 4.3 4.8 11.1 8.2 6.8

DJ Credit Suisse Global Macro Index 4.5 4.5 8.4 5.0 6.7 7.9 3.1 4.3 4.6 6.4 13.5 11.5 -4.6 17.4 13.5 9.2


0.0

10.0

20.0

30.0

-10.0

-20.0

Ac

tive

Re

turn

(%)

12/93 12/95 12/97 12/99 12/01 12/03 12/05 12/07 12/09 12/11 3/15 0.0

5.0

10.0

15.0

20.0

Re

turn

(%)






SharpeRatio

TrackingError

InformationRatio


InceptionDate

Moore Macro Managers Fund 13.5 8.1 10.3 7.9 0.7 1.3 7.2 0.7 4.2 58.5 21y 8m

HFRI Macro (Total) Index 8.2 6.6 5.3 0.0 1.0 0.8 0.0 N/A 3.2 0.0 21y 8m


Manager EvaluationMoore Macro Managers Fund vs. HFRI Macro (Total) IndexAs of March 31, 2015

26




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Double Black Diamond, Ltd. Series E 0.6 0.6 2.9 6.9 5.6 8.3 4.9 8.1 11.6 -2.2 9.5 28.3 -13.4 15.7 20.9 5.1

HFRI RV: Multi-Strategy Index 2.2 2.2 4.2 6.0 5.3 4.6 3.4 7.9 8.2 -2.4 13.2 24.7 -20.3 1.8 9.0 5.7

DJ Credit Suisse Multi-Strategy Index 3.0 3.0 7.2 8.9 7.8 6.7 6.1 11.2 8.1 4.2 9.3 24.6 -23.6 10.1 14.5 7.5


0.0

6.0

12.0

18.0

-6.0

-12.0

Ac

tive

Re

turn

(%)

6/98 12/99 6/01 12/02 6/04 12/05 6/07 12/08 6/10 12/11 6/13 3/15 0.0

5.0

10.0

15.0

Re

turn

(%)

4.0 4.2 4.4 4.6 4.8 5.0 5.2 5.4 5.6 5.8Risk (Standard Deviation %)


Double Black Diamond, Ltd. Series E



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Double Black Diamond, Ltd. Series E 9.1 5.3 6.6 5.0 0.7 1.3 4.3 0.8 3.2 55.9 17y

HFRI RV: Multi-Strategy Index 5.4 4.5 3.1 0.0 1.0 0.7 0.0 N/A 3.2 0.0 17y


Manager EvaluationDouble Black Diamond, Ltd. Series E vs. HFRI RV: Multi-Strategy IndexAs of March 31, 2015

27




Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Fir Tree International Value Fund (Non-US), L.P. 2.0 2.0 0.4 7.7 9.2 8.8 -2.1 17.2 16.9 2.4 16.7 21.1 -19.4 19.4 14.6 5.7




0.0

15.0

30.0

45.0

-15.0

-30.0

Ac

tive

Re

turn

(%)

3/94 3/96 3/98 3/00 3/02 3/04 3/06 3/08 3/10 3/12 3/15 0.0

5.0

10.0

15.0

20.0

Re

turn

(%)

-5.0 0.0 5.0 10.0 15.0 20.0Risk (Standard Deviation %)


Fir Tree International Value Fund (Non-US), L.P.



SharpeRatio

TrackingError

InformationRatio


InceptionDate

Fir Tree International Value Fund (Non-US), L.P. 11.8 12.5 9.2 3.5 1.3 0.7 11.3 0.5 7.6 56.9 21y 3m

HFRI RV: Multi-Strategy Index 6.7 4.2 3.8 0.0 1.0 0.9 0.0 N/A 2.9 0.0 21y 3m


Manager EvaluationFir Tree International Value Fund (Non-US), L.P. vs. HFRI RV: Multi-Strategy IndexAs of March 31, 2015

28


Comparative Performance and Rolling Return Risk and Return (Jun-2002 - Mar-2015)

Historical Statistics (Jun-2002 - Mar-2015)

Quarter

YearTo

Date1

Year3

Years5

Years10

Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

Pine River Fund Ltd. 1.9 1.9 4.2 10.4 10.8 14.9 4.7 9.7 21.7 5.7 13.9 91.0 -26.7 21.6 25.2 5.4




0.0

15.0

30.0

-15.0

-30.0

Ac

tive

Re

turn

(%)

9/02 12/03 3/05 6/06 9/07 12/08 3/10 6/11 9/12 12/13 3/15 -5.0

0.0

5.0

10.0

15.0

20.0

Re

turn

(%)






SharpeRatio

TrackingError

InformationRatio


InceptionDate

Pine River Fund Ltd. 11.0 10.1 9.5 3.2 1.5 0.9 7.8 0.7 6.1 57.8 12y 10m

HFRI RV: Multi-Strategy Index 5.3 4.6 3.9 0.0 1.0 0.8 0.0 N/A 3.4 0.0 12y 10m


Manager EvaluationPine River Fund Ltd. vs. HFRI RV: Multi-Strategy IndexAs of March 31, 2015

29

Hedge Fund ManagerPortfolio Characteristics

30

Firm Assets $5.1 billion

Fund Assets $3.4 billion

Gross Exposure 186.0%

Net Exposure 21.8%

Long Exposure 103.9%

Short Exposure -82.1%


Manager EvaluationESG Cross Border Equity Offshore Fund, Ltd. As of March 31, 2015


1Q Gross

Attribution

YTD Gross

Attribution

Basic Materials -0.4% -0.4%

Business Services 0.1% 0.1%

Consumer 0.0% 0.0%

Financials -0.9% -0.9%

Gaming and Leisure 0.4% 0.4%

Healthcare 1.1% 1.1%

Industrial 0.0% 0.0%

Real Estate 0.0% 0.0%

Retail 2.9% 2.9%

TMT 0.1% 0.1%

Index 1.1% 1.1%

** Attribution excludes cost of currency hedging.

Performance Attribution by Industry**

Regional Exposure

Longs Shorts Gross Net

Global 36.1% -33.3% 70.4% 2.8%

Latam 6.5% -2.5% 9.0% 4.0%

EMEA 3.2% -1.6% 4.8% 1.6%

Asia 31.4% -25.6% 57.0% 5.8%

Pan EM 26.7% -19.1% 45.8% 7.6%

Regional Exposure


Basic Materials 0.0% -4.0% 4.0% -4.0%

Business Services 3.3% -3.7% 7.0% -0.4%

Consumer 26.0% -9.2% 35.2% 16.8%

Financials 16.7% -6.7% 23.4% 10.0%

Gaming and Leisure 4.6% -0.4% 5.0% 4.2%

Healthcare 8.0% -0.7% 8.7% 7.3%

Industry Exposure

Healthcare 8.0% -0.7% 8.7% 7.3%

Industrial 2.2% -4.5% 6.7% -2.3%

Real Estate 0.0% 0.0% 0.0% 0.0%

Retail 30.4% -16.2% 46.6% 14.2%

TMT 12.7% -3.1% 15.8% 9.6%

Index 0.0% -33.4% 33.4% -33.4%

31




Net Exposure -53.5%


Short Exposure1 -194.3%


Manager EvaluationLuxor Capital Partners Offshore, Ltd. As of March 31, 2015


1Q Gross

Attribution

YTD Gross

Attribution

Equity 2.5% 2.5%

Credit

Bank Debt and Loans 0.3% 0.3%

Investment Grade -1.0% -1.0%

High Yield -1.6% -1.6%

Convertible Bonds -0.2% -0.2%

Mortgage Backed Securities 0.0% 0.0%

Other 0.0% 0.0%

Commodity and FX Hedges -0.5% -0.5%

Performance Attribution by Strategy

Regional Exposure


North America 104.3% -60.4% 165.7% 43.9%

Europe 22.1% -71.3% 93.4% -49.2%

Asia 14.3% -56.8% 71.1% -42.5%

South America 0.0% 0.0% 0.0% 0.0%

Other 0.1% -5.9% 6.0% -5.8%

Regional Exposure

1 Short exposure includes short derivatives positions


Financial Services 30.3% -2.7% 33.0% 27.6%

Media 26.0% -3.5% 29.5% 22.5%

Internet 31.8% -14.4% 46.2% 17.4%

Real Estate/REITS 10.9% -3.8% 14.7% 7.1%

Utilities 0.1% 0.0% 0.1% 0.1%

Consumer Products 8.8% -3.0% 11.8% 5.8%

Industry Exposure

Consumer Products 8.8% -3.0% 11.8% 5.8%

Oil and Gas Services 4.0% -1.9% 5.9% 2.1%

Retail 6.3% -0.2% 6.5% 6.1%

Software and Technology 3.0% -2.1% 5.1% 0.9%

Lodging and Gaming 0.8% -1.5% 2.3% -0.7%

Transportation 2.5% -5.2% 7.7% -2.7%

Exploration and Production 5.1% -0.7% 5.8% 4.4%

Engineering and Construction 0.0% 0.0% 0.0% 0.0%

Mortgage Backed Securities 0.0% 0.0% 0.0% 0.0%

Insurance 0.0% -1.2% 1.2% -1.2%

Chemicals 0.0% -4.0% 4.0% -4.0%

Commodity 0.1% -5.9% 6.0% -5.8%

Basic Materials 0.0% -0.3% 0.3% -0.3%

Industrial 1.2% -7.3% 8.5% -6.1%

Mining 1.9% -1.9% 3.8% 0.0%

Communications 1.3% -3.6% 4.9% -2.3%

Health and BioTech 1.3% -2.2% 3.5% -0.9%Health and BioTech 1.3% -2.2% 3.5% -0.9%

Sovereign 1.5% -24.1% 25.6% -22.6%

Alternative Energy 3.6% -1.5% 5.1% 2.1%

Index1 0.1% -103.3% 103.4% -103.2%

32




Net Exposure 38.9%




Manager EvaluationCapeView Azri Fund, Ltd.As of March 31, 2015



UK 41.8% -23.9% 66.7% 17.9%

Continental Europe 58.1% -29.6% 87.7% 28.5%

Europe (Index) 1.5% -9.0% 10.5% -7.5%

Other 0.0% 0.0% 0.0% 0.0%

Regional Exposure


Basic Materials 8.9% -7.7% 16.6% 1.2%

Commodity 0.0% 0.0% 0.0% 0.0%

Communications 18.5% -2.2% 20.7% 16.3%

Consumer, Cyclical 24.7% -13.9% 38.6% 10.8%

Consumer, Non-cyclical 14.6% -6.2% 20.8% 8.4%

Currency 0.0% 0.0% 0.0% 0.0%

Industry Exposure

Currency 0.0% 0.0% 0.0% 0.0%

Diversified 0.9% 0.0% 0.9% 0.9%

Energy 0.1% -2.7% 2.8% -2.6%

Financial 19.4% -9.1% 28.5% 10.3%

Government 0.0% 0.0% 0.0% 0.0%

Index 4.6% -11.5% 16.1% -6.9%

Industrial 2.2% -4.8% 7.0% -2.6%

Technology 4.8% -1.7% 6.5% 3.1%

Utilities 2.6% -2.8% 5.4% -0.2%

33




Net Exposure 23.0%

Long Exposure 98.0%



Manager EvaluationPassport Long Short Fund, Ltd. As of March 31, 2015


1Q Gross

Attribution

YTD Gross

Attribution

Internet / Technology 1.6% 1.6%

Basic Materials 1.6% 1.6%

Consumer 0.0% 0.0%

Energy 0.9% 0.9%

Diversified 0.2% 0.2%

Industrials 0.0% 0.0%

Healthcare -0.2% -0.2%

Utilities 0.1% 0.1%

MENA 0.9% 0.9%

Financials 0.4% 0.4%

Performance Attribution by Industry

Regional Exposure


US 77.0% -61.0% 139.0% 16.0%

EM 0.0% 0.0% 0.0% 0.0%

MENA 9.0% -2.0% 11.0% 7.0%

Europe 3.0% -4.0% 7.0% -1.0%

Asia 4.0% 0.0% 4.0% 4.0%

Canada 3.0% -6.0% 9.0% -3.0%

Regional Exposure


Internet / Technology 9.0% -23.0% 32.0% -14.0%

Basic Materials 12.0% -14.0% 26.0% -2.0%

Consumer 27.0% -20.0% 47.0% 7.0%

Energy 20.0% -4.0% 24.0% 16.0%

Diversified 0.0% 0.0% 0.0% 0.0%

Industrials 7.0% -5.0% 12.0% 2.0%

Industry Exposure

Industrials 7.0% -5.0% 12.0% 2.0%

Healthcare 1.0% -2.0% 3.0% -1.0%

Utilities 2.0% 0.0% 2.0% 2.0%

MENA 9.0% -2.0% 11.0% 7.0%

Financial 11.0% -5.0% 16.0% 6.0%

34



Fund Assets $435 million


Net Exposure 28.1%



Manager EvaluationBloom Tree Offshore Fund, Ltd.As of March 31, 2015


1Q Gross

Attribution

YTD Gross

Attribution

Business Services 0.0% 0.0%

Consumer Discretionary 2.3% 2.3%

Consumer Staples 0.7% 0.7%

Energy -0.5% -0.5%


Health Care 0.6% 0.6%


Information Technology 1.1% 1.1%

LED -0.2% -0.2%

Materials 0.0% 0.0%

REIT 0.0% 0.0%

Solar 0.0% 0.0%


Solar 0.0% 0.0%

Telecommunication Services -0.3% -0.3%

Utilities 0.0% 0.0%

Other Assets 0.0% 0.0%

Credit/Risk Arb/Other 0.1% 0.1%


Business Services 0.0% 0.0% 0.0% 0.0%

Consumer Discretionary 13.1% -11.5% 24.6% 1.6%

Consumer Staples 0.0% -5.2% 5.2% -5.2%

Energy 6.8% -8.6% 15.4% -1.8%

Financials 27.3% -1.5% 28.8% 25.8%

Health Care 8.8% -5.1% 13.9% 3.7%

Industry Exposure

Health Care 8.8% -5.1% 13.9% 3.7%

Industrials 11.8% -12.6% 24.4% -0.8%

Information Technology 27.9% -15.3% 43.2% 12.6%

LED 0.0% -2.1% 2.1% -2.1%

Materials 0.0% -5.9% 5.9% -5.9%

REIT 0.0% 0.0% 0.0% 0.0%

Solar 0.0% -0.4% 0.4% -0.4%

Telecommunication Services 3.4% -1.2% 4.6% 2.2%

Utilities 0.0% 0.0% 0.0% 0.0%

Other Assets 0.0% 0.0% 0.0% 0.0%

Credit/Risk Arb/Other 0.0% 0.0% 0.0% 0.0%


North America 84.8% -53.0% 137.8% 31.8%

Europe 6.9% -6.0% 12.9% 0.9%

Regional Exposure

Europe 6.9% -6.0% 12.9% 0.9%

Asia 9.0% -13.7% 22.7% -4.7%

Emerging Markets 0.0% 0.0% 0.0% 0.0%

35




Net Exposure 54.4%

Long Exposure 83.7%



Manager EvaluationTiger Eye Fund, Ltd. As of March 31, 2015


1Q Gross

Attribution

YTD Gross

Attribution

Consumer 0.4% 0.4%

Energy 0.0% 0.0%


Healthcare 2.7% 2.7%


Materials 0.5% 0.5%

Real Estate & Lodging 0.1% 0.1%

TMT 1.7% 1.7%

Other 0.0% 0.0%


Regional Exposure


US 67.3% -27.7% 96.0% 39.6%

Europe 11.7% -0.9% 12.6% 10.8%

Asia 0.0% 0.0% 0.0% 0.0%

Canada 4.7% -0.7% 5.4% 4.0%

South America 0.0% 0.0% 0.0% 0.0%

Other 0.0% 0.1% -0.1% 0.1%

Regional Exposure


Consumer 8.8% -3.8% 12.6% 5.0%

Energy 6.9% -5.3% 12.2% 1.6%

Financials 0.0% -0.9% 0.9% -0.9%

Healthcare 13.7% -2.2% 15.9% 11.5%

Industrials 17.9% -7.6% 25.5% 10.3%

Materials 4.3% -3.6% 7.9% 0.7%

Industry Exposure

Materials 4.3% -3.6% 7.9% 0.7%

Real Estate & Lodging 5.0% -1.8% 6.8% 3.2%

TMT 27.1% -4.1% 31.2% 23.0%

Other 0.0% 0.0% 0.0% 0.0%

36




Net Exposure 66.0%




Manager EvaluationIndus Japan Fund, Ltd. As of March 31, 2015



Japan 104.2% -40.7% 145.9% 63.5%

North America 1.6% 0.0% 1.6% 1.6%

Hong Kong/China 1.1% 0.0% 1.1% 1.1%

India 0.2% 0.0% 0.2% 0.2%

Europe 0.0% 0.0% 0.0% 0.0%

Philippines 0.0% 0.0% 0.0% 0.0%

Korea 0.0% 0.0% 0.0% 0.0%

Regional Exposure


Technology 25.9% -9.0% 34.9% 16.9%

Cyclicals 20.5% -8.0% 28.5% 12.5%

Real Estate & Construction 12.5% 0.0% 12.5% 12.5%

Autos & Auto Parts 7.7% -2.4% 10.1% 5.3%

Banks 6.0% -1.2% 7.2% 4.8%

Finance 6.7% -1.3% 8.0% 5.4%

Industry Exposure

Finance 6.7% -1.3% 8.0% 5.4%

Telecoms/Media 3.3% -2.1% 5.4% 1.2%

Pharmaceuticals/Healthcare 6.9% -0.9% 7.8% 6.0%

Utilities 0.5% 0.0% 0.5% 0.5%

Transportation 4.3% 0.5% 3.8% 4.8%

Consumer 8.6% -3.0% 11.6% 5.6%

Energy 1.6% -1.8% 3.4% -0.2%

Diversified 1.6% -10.6% 12.2% -9.0%

Batteries 1.2% 0.0% 1.2% 1.2%

37




Net Exposure 89.3%

Long Exposure 93.3%



Manager EvaluationDK Distressed Opportunities International, Ltd.As of March 31, 2015



North America 50.4% -3.1% 54.5% 47.3%

Europe 28.3% -0.6% 28.9% 27.7%

Other 14.6% -0.3% 14.9% 14.3%

Regional Exposure

Lehman Brother 6.4% Ally Financial Hedge -1.1%

MGM Studios 5.3% US Real Estate #2 -0.6%

Building Materials 3.5% European Financial #11 -0.3%

Icelandic Banks - Glitnir 2.9% Materials #4 -0.2%

Top Positions

Top Longs Top Shorts


Common Stock 19.3% -1.8% 21.1% 17.5%

Corporate Bonds 45.1% -2.2% 47.3% 42.9%

Bank Debt 23.2% 0.0% 23.2% 23.2%

Trade Claims 5.6% 0.0% 5.6% 5.6%

Other 0.0% 0.0% 0.0% 0.0%

Asset Class Exposure

Litigation Play #1 2.3% US Energy #6 -0.2%

Top 5 Total 20.4% Top 5 Total -2.4%

Number of Longs 159 Number of Shorts 19

38




Net Exposure 76.4%

Long Exposure 93.5%



Manager EvaluationYork Credit Opportunities Unit TrustAs of March 31, 2015



North America 39.9% -7.2% 48.1% 32.7%

Europe 38.0% -9.6% 47.6% 28.4%

Asia 9.3% -0.2% 9.5% 9.1%

Other 6.5% -0.2% 6.7% 6.3%

Regional Exposure

Indiana Toll Road 6.7% Industrials - Bonds -0.3%

TXU 5.9% Industrials - Bonds -0.3%

Lehman Brothers 4.7% Energy - Bonds -0.3%

Argentine Republic 3.0% Industrials - CDS -0.3%

Top Positions



Public Equity 18.4% -0.7% 19.1% 17.7%

Options & Futures 0.7% -0.8% 1.5% -0.1%

Bank Debt 12.9% 0.0% 12.9% 12.9%

Bonds 44.4% -4.4% 48.8% 40.0%

CDS 0.5% -11.3% 11.8% -10.8%

Asset Banked 1.4% 0.0% 1.4% 1.4%

Non-Public Equity 15.3% 0.0% 15.3% 15.3%

Strategy Exposure

WR Grace 2.7% Energy - Bonds -0.3%


Number of Longs 89 Number of Shorts 12

Non-Public Equity 15.3% 0.0% 15.3% 15.3%

39





Net Exposure 44.4%

Long Exposure 77.3%



Regional Exposure

CMBS 5.0% MARKIT CDX.HY Index -5.0%

Commonwealth of Puerto Rico 4.5% Liz Claiborne -1.9%

Texas Competitive Electric 4.3% United States Steel -1.5%

San Jose 3.7% MARKIT CDX.IG Index -1.5%

Casear's Entertainment 3.2% Teck Resources -1.3%


Top Positions


Manager EvaluationMarathon Special Opportunities Fund, Ltd.As of March 31, 2015


ABS 8.1% 0.0% 8.1% 8.1%

Credit Derivatives 0.9% -13.0% 13.9% -12.1%

Equity 12.4% -1.6% 14.0% 10.8%

Fixed 53.2% -16.8% 70.0% 36.4%

Fund 2.2% 0.0% 2.2% 2.2%

Futures 0.0% -0.7% 0.7% -0.7%

FX 0.1% 0.0% 0.1% 0.1%

Options 0.0% -0.8% 0.8% -0.8%

Structured Product 0.4% 0.0% 0.4% 0.4%

Swaps 0.0% 0.0% 0.0% 0.0%



North America 56.6% -27.9% 85.5% 28.7%

Europe 15.5% -0.9% 16.4% 14.6%

Asia 0.9% -0.3% 1.2% 0.6%

Other 4.3% -3.7% 8.0% 0.6%

Regional Exposure

40



VaR

Brevan Howard Multi-Strategy Fund 0.29%

Master Fund 0.34%

DW Catalyst Offshore Fund, Ltd. 0.37%

Asia Master Fund 0.41%


Manager EvaluationBrevan Howard Multi-Strategy Fund LimitedAs of March 31, 2015

Regional Exposure

Asia Master Fund 0.41%

Systematic Trading Master Fund 0.74%

Direct Investment Portfolio 0.39%

Europe40.0%

Asia

Americas24.0%

Asia25.0%

Oceania7.0%Multi-

Region4.0%

% NAV Q4 % NAV Q1

Master Fund 45.0% 44.1%

Credit Catalyst Master Fund 13.5% 11.5%

Systematic Trading Master Fund 7.4% 8.9%

Commodities Strategies Master Fund 1.6% --

Asia Master Fund 8.3% 9.1%

Credit Value Master Fund 0.6% --

Underlying Fund Allocation

Strategy Exposure

Credit Value Master Fund 0.6% --

Direct Investment Portfolio 23.6% 26.4%

FX31.0%

Equity

Interest Rates19.0%

Vega11.0%

Equity28.0%

Commodity2.0%

Credit8.1%

41


Fund Assets $482.5 million

Margin/ Net Assets 20.6%

VaR 6.9%


Manager EvaluationRobeco Transtrend Diversified Fund LLCAs of March 31, 2015

Regional Exposure

Americas44.7%

Europe17.8%

Asia8.2%

Currencies29.0%

Other0.3%

Commodities

Currencies

Interest Rates

Equity Related

1Q Gross YTD Gross

1.5%

1.4%

Attribution by Strategy

VaR by Strategy

2.0%

VaR

1.9%

1Q Gross

Attribution

YTD Gross

Attribution

Commodities 0.3% 0.3%

Currencies 1.6% 1.6%

Interest Rates 4.4% 4.4%

Equity Related 3.3% 3.3%

Strategy Exposure

Equity29.0%

Commodity22.3%

Interest Rates27.8%

Currencies20.9%

42




Net Exposure -24.0%




Global Opportunistic

Credit/Event

Commodities

Other

0.7%

-0.4%

0.0%

Attribution by Strategy - Q1

Gross Attribution

4.3%

Regional Exposure Strategy Exposure

Manager EvaluationMoore Macro Managers Fund, Ltd.As of March 31, 2015

Regional Exposure Strategy Exposure

US & Canada26.0%

Developed Europe48.5%

Latin America1.6%

Developed Asia11.0%

Emerging Asia5.9%

Eastern Europe4.7%Other

2.3%

Global Opportunistic

80.0%

Credit/Event11.0%

Commodities9.0%Other

0.0%

43




Net Exposure 30.5%




Manager EvaluationDouble Black Diamond, Ltd. Series EAs of March 31, 2015



North America 162.8% -129.2% 293.0% 33.6%

Europe 34.5% -32.8% 67.3% 1.7%

Asia 2.8% -8.4% 11.2% -5.6%

Other 3.1% -2.2% 5.3% 0.9%

Regional Exposure

Equity Relative Value

Equity Long/Short

Credit Relative Value

Credit Long/Short

Event-Driven

Strategic Investments

0.4%

0.4%

0.6%

-0.1%

Performance Attribution by Strategy - Q1

Gross Attribution

0.1%

0.0%


Equity Relative Value 48.5% -50.4% 98.9% -1.9%

Equity Long/Short 28.4% -27.4% 55.8% 1.0%

Credit Relative Value 39.3% -36.3% 75.6% 3.0%

Credit Long/Short 12.6% -4.8% 17.4% 7.8%

Event-Driven 39.4% -18.7% 58.1% 20.7%

Strategic Investments 4.6% -1.1% 5.7% 3.5%

Macro Strategies 30.3% -33.9% 64.2% -3.6%

Strategy Exposure

Strategic Investments

Macro Strategies -0.1%

-0.1%

Macro Strategies 30.3% -33.9% 64.2% -3.6%

44




Net Exposure 43.5%

Long Exposure 89.2%



Manager EvaluationFir Tree International Value Fund (Non-US), L.P. As of March 31, 2015



North America 71.3% -28.2% 100.5% 43.1%

Europe/UK 3.0% -0.6% 3.6% 2.4%

Asia 2.5% -10.4% 12.9% -7.9%

Latin America 10.0% -4.4% 14.4% 5.6%

Other 2.5% -2.2% 4.7% 0.3%

Regional Exposure

Value Equities

Special Situations

Long-Term Arbitrage

Yielding Securities

Corporate Credit

Capital Structure Arbitrage

-0.2%

0.3%

-0.6%

0.6%


Gross Attribution

0.4%

1.6%


Value Equities 13.5% -1.8% 15.3% 11.7%

Special Situations 38.2% -6.1% 44.3% 32.1%

Long-Term Arbitrage 8.3% -6.9% 15.2% 1.4%

Yielding Securities 14.3% -5.2% 19.5% 9.1%

Corporate Credit 4.5% 0.0% 4.5% 4.5%

Capital Structure Arbitrage 6.7% -4.1% 10.8% 2.6%

Structured / Mortgage Credit 2.8% 0.0% 2.8% 2.8%

Strategy Exposure

Capital Structure Arbitrage

Structured/Mortgage Credit

Portfolio Hedges

Credit Shorts

0.6%

0.0%

0.1%

0.4%

Structured / Mortgage Credit 2.8% 0.0% 2.8% 2.8%

Portfolio Hedges 0.8% -11.4% 12.2% -10.6%

Credit Shorts 0.0% -10.2% 10.2% -10.2%

45

Strategy Allocation




Total Number of Positions 3,816

Weighted Average Credit Weighting of Rated Bonds AA


Convertibles

Mortgages

Credit

Equities

Volatility

Rates

Tail Hedges

Municipals

Emerging Markets

Commodities/Macro

Management Overlay

Cash

0.4%

0.0%

-0.1%

0.2%

1.9%

0.1%

0.2%

-1.2%

0.0%

-0.2%


Gross Attribution

0.1%

0.5%

Regional Allocation

Manager EvaluationPine River Fund, Ltd.As of March 31, 2015

Strategy AllocationRegional Allocation

Convertibles9.7%

Municipals1.3%

Cash0.0%

Equities37.5%

Volatility0.6%

Rates7.0% Tail Hedge

2.8% Mortgages7.8%

Macro10.5%

Emerging Markets

4.3%

Credit18.5%

North America65.1%

Europe10.6%

Asia24.3%

46

The Equity Strategy is comprised of Equity Long/Short strategies. Equity hedge strategies typically have a directional bias (long or short) andtrade in equities and equity-related derivatives. Managers seek to buy undervalued equities with improving fundamentals and short overvaluedequities with deteriorating fundamentals.Trade Example: Long a basket of energy stocks and short a basket of consumer electronics stocks.

The Credit Strategy is comprised of Distressed Securities, Credit Long/Short, Emerging Market Debt and Credit Event Driven. Credit strategiestypically have a directional bias and involve the purchase of various types of debt, equity, trade claims and fixed income securities. Hedging usingvarious instruments such as Credit Default swaps is frequently employed.Trade Example: Buying the distressed bonds of a company which has defaulted and participating in the corporate restructuring.

The Macro Strategy consists of Global Macro, Managed Futures, Commodities and Currencies. Macro strategies usually have a directional bias(which can be either long or short) and involve the purchase of a variety of securities and/or derivatives related to major markets. Managed futuresstrategies trade similar instruments but are typically implemented by computerized systems.Trade Example: Long the US Dollar and short the Japanese Yen

The Relative Value Strategy typically does not display a distinct directional bias. Relative Value encompasses a range of strategies coveringdifferent asset classes. Arbitrage strategies focus on capturing movements or anomalies in the price spreads between related or similar instruments.The rationale for Arbitrage trades is the ultimate convergence of the market price relationship to a known, theoretical or equilibrium relationship.

Trade Example: Long the stock of a merger bid target and short the stock of the acquirer.

Hedge Fund Strategy Definitions

47

Statistics Definition

Alpha - A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta.It is a measure of the portfolio's historical performance not explained by movements of the market, or a portfolio's non-systematic return.

Best Quarter - The best of rolling 3 months(or 1 quarter) cumulative return.

Beta - A measure of the sensitivity of a portfolio to the movements in the market. It is a measure of a portfolio's non-diversifiable or systematicrisk.

Consistency - The percentage of quarters that a product achieved a rate of return higher than that of its benchmark. The higher the consistency figure, themore value a manager has contributed to the product’s performance.

Downside Risk - A measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking thestandard deviation of the negative set of returns. The higher the factor, the riskier the product.

Excess Return - Arithmetic difference between the managers return and the risk-free return over a specified time period.

Information Ratio - Measured by dividing the active rate of return by the tracking error. The higher the Information Ratio, the more value-added contributionby the manager.

Maximum Drawdown - The drawdown is defined as the percent retrenchment from a fund's peak value to the fund's valley value. It is in effect from the time thefund's retrenchment begins until a new fund high is reached. The maximum drawdown encompasses both the period from the fund's peakto the fund's valley (length), and the time from the fund's valley to a new fund high (recovery). It measures the largest percentagedrawdown that has occurred in any fund's data record.

Return - Compounded rate of return for the period.

Sharpe Ratio - Represents the excess rate of return over the risk free return divided by the standard deviation of the excess return. The result is theabsolute rate of return per unit of risk. The higher the value, the better the product’s historical risk-adjusted performance.

Sortino Ratio - A ratio developed by Frank A. Sortino to differentiate between good and bad volatility in the Sharpe ratio. This differentiation of upwardsand downwards volatility allows the calculation to provide a risk-adjusted measure of a security or fund's performance without penalizingit for upward price changes.

Standard Deviation - A statistical measure of the range of a portfolio's performance, the variability of a return around its average return over a specified timeperiod.

Tracking Error - A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark.

Worst Quarter - The worst of rolling 3 months(or 1 quarter) cumulative return.

Statistical DefinitionsRisk StatisticsAs of March 31, 2015

48

Att 8a - IC Goals- FY15_ih.docx

Separator Page

Approved by the Board on June 11, 2014

INVESTMENT COMMITTEE Goals for FY 2015

(status as of 1.6.15) Purpose The purpose of the Investment Committee is to develop and recommend to El Camino Hospital Board of Director the investment policies

governing the Hospital’s assets, maintain current knowledge of the management and investment of the invested funds of the Hospital, and

provide oversight of the allocation of the investment assets.

Staff: Iftikhar Hussain, CFO

The CFO shall serve as the primary staff support to the Committee and is responsible for drafting the Committee meeting agenda for the

Committee Chair’s consideration. Additional members of the hospital staff may participate in the Committee meetings upon the

recommendation of the CFO and subsequent approval from the Committee Chair. The CEO is an ex-officio member of this Committee.

Submitted by: John Zoglin, Chair, Investment Committee Iftikhar Hussain, Executive Sponsor, Investment Committee

Goals

Timeline by Fiscal Year (Timeframe applies to when the Board approves the

recommended action from the Committee, if

applicable)

Metrics

1. Review performance of consultant

recommendations of managers and

asset allocations

Each quarter –Ongoing Investment Committee to review selection

of money managers; recommendations are

made to CFO

2. Review investment policy, in light of

FY14 asset allocation study and

Board’s discussion on risk

Revisit asset allocation – Nov 2014 -

Complete

Board to Approve by January 2015

3. Educate Board and Committee on

hospital capital structures (debt and

investments)

Completed in November 2014 and

asset allocation updated accordingly

To be completed by March 2015

4. Review/revise Executive Dashboard Each quarter - Ongoing To be completed by June 2015

Att 8b - IC Goals- FY16.docx

Separator Page

Approved by the Board on June 11, 2014

INVESTMENT COMMITTEE Goals for FY 2016 - Draft

Purpose The purpose of the Investment Committee is to develop and recommend to El Camino Hospital Board of Director the investment policies

governing the Hospital’s assets, maintain current knowledge of the management and investment of the invested funds of the Hospital, and

provide oversight of the allocation of the investment assets.

Staff: Iftikhar Hussain, CFO

The CFO shall serve as the primary staff support to the Committee and is responsible for drafting the Committee meeting agenda for the

Committee Chair’s consideration. Additional members of the hospital staff may participate in the Committee meetings upon the

recommendation of the CFO and subsequent approval from the Committee Chair. The CEO is an ex-officio member of this Committee.

Submitted by: Iftikhar Hussain, Executive Sponsor, Investment Committee

Goals

Timeline by Fiscal Year (Timeframe applies to when the Board approves the

recommended action from the Committee, if

applicable)

Metrics

1. Review performance of consultant

recommendations of managers and

asset allocations

Each quarter –Ongoing Investment Committee to review selection

of money managers; recommendations are

made to CFO

2. Review current investment strategy of

using active managers vs. passive

allocation

Q2

Recommend to the Board by December

2015

3. Educate Board and Committee use of

managers with greater focus on

Environment, Social and Governance

Q1 To be completed by September 2015

4. Review/revise Executive Dashboard Each quarter - Ongoing To be completed by June 2016

AGENDA Investment Committee Meeting El Camino · PDF fileb. First Quarter Performance Review...

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