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Prepared for:

Retirement Plan Quarterly Investment

Review

All Vendor Summary

March 31, 2009

Pepperdine University Retirement PlanPlan Name:

Quarter Ending:

Section 1 – Market OverviewIndustry Analysis

Section 2 – Diversified Plan Portfolio SummaryFund Performance SummaryT. Rowe Price Retirement - Quantitative Analysis SummaryPortfolioXPress AnalysisQuantitative Analysis SummaryFund Evaluation AnalysisOverlap AnalysisRange of InvestmentsManagement Style AnalysisPortfolio AnalysisPortfolio Return vs. Custom Benchmark

Table of Contents

Section 3 – Diversified Plan Asset AllocationAsset Allocation by FundAsset Allocation by CategoryAsset Allocation by Age GroupPlan DemographicsPortfolio Xpress Models

Section 4 – Prudential Plan Portfolio SummaryFund Performance SummaryQuantitative Analysis SummaryFund Evaluation AnalysisManagement Style AnalysisPortfolio AnalysisPortfolio Return vs. Custom Benchmark

Section 5 – Prudential Plan Asset AllocationAsset Allocation by FundAsset Allocation by Category %Asset Allocation Quarterly ComparisonGrowth of Plan Assets

Section 6 – TIAA-CREF Plan Portfolio SummaryFund Performance SummaryQuantitative Analysis SummaryFund Evaluation AnalysisManagement Style AnalysisPortfolio AnalysisPortfolio Return vs. Custom Benchmark

Section 7 – TIAA-CREF Plan Asset AllocationAsset Allocation by FundAsset Allocation by Category %Asset Allocation Quarterly Comparison ($ and %)Growth of Plan Assets

Market Overview

March 31, 2009

Section 1

4

Source: Standard & Poor’s, FRB, BLS, BEA, JP Morgan. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

The U.S. yield curve has steepened along with the UK and Eurozone. The 10 Year Treasury rose from 2.25% at the end of 2008 to 2.71% by the end of the first quarter. The 90-day T-bill rose slightly from 0.11% at the end of 2008 to 0.21% by the end of the first quarter. The 90-day average spread between the 90-day T-bill and the 10 Year Treasury declined from 292 bps at the end of 2008 to 253 bps by the end of the first quarter.

Yield Curve

Unemployment continues to rise higher in response to big output declines. The unemployment rate jumped to 8.5% at the end of the first quarter, up from 7.2% at the end of the 2008. The economy has lost 5.7 million jobs since the beginning of the recession in December 2007. History suggests that an expansion is likely to begin before the jobs market improves, although negative feedback from job losses on consumer spending and housing will slow the rebound.

Employment

The U.S. economy remains mired in a deep recession. GDP declined again in the first quarter by 5.7% based on advance estimates, following the biggest drop in output in 26 years in the fourth quarter at -6.3%. Growth has been hindered by tightening credit markets, constrained consumers and uncertainly about the country’s financial institutions.

Economic Growth (GDP)

1Q09 2008Barclays Aggregate Bond Index 0.12% 5.24% S&P 500 Index -11.01% -37.00%MSCI EAFE Index -13.94% -43.38%

Investment Returns

The Federal Reserve is holding short-term interest rates at very low levels and expanding their assets in order to hold long-term rates down and thus stimulate the economy. While they may succeed in this in the short-run, any economic recovery is likely to push Treasury rates higher, suggesting bond investors will have to embrace some credit risk to avoid negative returns. The target Fed Funds rate remains at 0.00% to 0.25%.

Interest Rates

Rebounding oil prices and rising CPI in early 2009 have eased deflation fears but they could revive in a worsening recession. In a competitive economy, inflation will not likely start rising until the economy is back to full employment. At the end of the first quarter, headline CPI was -0.4% and core CPI was 1.8% (unadjusted 12 month trailing figure).

Inflation (CPI)

Economic Summary

1st Quarter 2009 Market Overview

5

10 Year Return Periods of the S&P 500 Index 1928 - 2008


This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

6

Market Comebacks


-71%

-34%-42% -40%

148%

100%

57%67%

0%

40%

80%

120%

160%

Internet BubbleWar on Terrorism

Oil CrisisWorld War IIGreat Depression

Market Returns After Consecutive Down Years (S&P 500 Index)

29-32 33-36 39-41 42-45 73-74 75-76 00-02 03-07

Market Corrections & Calendar Year Price Return (S&P 500 Index)

Calendar year returns

Intra-year drops

Despite an average intra-year drop of 13.8%, the market’s return was positive in 22 of 29 years.

15 17

1

26

15

2

12

27 26

4 7

34

20

3127

2026

93

144-23-13-10-2-7-10

26

-37

-17 -17 -14-7

-12-8 -9

-34

-8 -8

-20

-6 -6 -5 -9-3

-8 -11-19

-12-17

-26-32

-14-8 -7 -8 -10

-47-55

-40

-25

-10

5

20

35

50

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

Source: JPMorgan Asset Management, Standard & Poor’s. Market returns represented by S&P 500 Index return (price only). Returns reflect calendar year returns and not peak to trough.

Data are as of 03/31/09.

Source: JPMorgan Asset Management, Standard & Poor’s. Market returns represented by S&P 500 Index return and do not include dividends.

Past performance is not indicative of future returns.

Intra-year drops refers to the largest market drops over periods of 6 months or less. Calendar year refers to the price return for the S&P 500 Index for each calendar year.



7


Historical Perspective 1926 - 2008


8


Index Annualized Returns 1989 - 2008


9

Gross Domestic Product


-$2,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

'86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08-8

-6

-4

-2

0

2

4

6

8

10

Real GDP % chg at annual rate

Avg. Latest

Real GDP: 2.8% -6.3%

Components of GDP

10.3% Investment ex-housing

69.9% Consumption

20.5% Gov’t Spending

Billions, USD

3.1% Housing / Construction

- 3.8% Net Exports

Source: BEA, JPMorgan Asset Management.

Data reflects most recently available as of 03/31/09. GDP values shown in legend are % change vs. prior quarter annualized and reflect revised 4Q 2008 GDP.


10

10%

15%

20%

25%

30%

35%

40%

'75 '80 '85 '90 '95 '00 '05

'90 '92 '94 '96 '98 '00 '02 '04 '06 '08

80

120

160

200

240 Home Prices Changes:1-year: -16%3-years: -23%5-years: -9%10-years: +26%

Thousands, non-seasonally adjusted

'75 '80 '85 '90 '95 '00 '05200

250

300

350

400

450

500

550

600

Unsold New HomesThousands, seasonally adjusted

Housing StartsThousands, seasonally adjusted annual rate

Mortgage Payment on Average New Home% of average household personal income

Inventories since July 2006: -42%

Median Home Prices

'75 '80 '85 '90 '95 '00 '05

400

800

1,200

1,600

2,000

2,400

10-years

5-years

3-years

1-year

Most recent: 583

Most recent: 13%

Aftermath of the Housing Bubble


Sources: (left chart) Census Bureau, FactSet, EcoWin, JPMorgan Asset Management. (Top right chart) Census Bureau, FactSet, EcoWin. JPMorgan Asset Management. (Bottom right chart) Census Bureau, Federal Reserve Board, BEA. Data reflects most recently available as of 03/31/09.

Home price based on median sales price of existing homes and are cumulative, not annualized. Existing-home sales include single-family, townhomes, condominiums and co-ops. Note: Calculation for bottom right chart assumes as 20% down payment, a 30-year fixed rate mortgage, excludes property tax and homeowners’ insurance and is expressed as a percent of pre-tax income.


11

Employment


Source: BLS, JPMorgan Asset Management.

Data reflects most recently available as of 03/31/09.


Data reflects most recently available as of 03/31/09.


'60 '70 '80 '90 '003%

4%

5%

6%

7%

8%

9%

10%

11%

12%

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09-800

-600

-400

-200

0

200

400

600

Civilian Unemployment Rate Employment - Total Non-farm Payroll

Most recent: 8.5%

50-yr avg.: 5.9%

Seasonally adjusted Total job gain/loss (thousands)

12

Consumer Price Index



Data reflects most recently available as of 03/31/09. CPI values shown in legend are % change vs. 1 year ago and reflect the 02/2009 CPI data. CPI component weights are as of 12/31/08 and 12-month change reflects data through 02/2009. Core CPI is defined as CPI excluding food and energy prices.


'60 '65 '70 '75 '80 '85 '90 '95 '00 '050%

3%

6%

9%

12%

15%

CPI and Core CPI50-yr. Avg. Latest

Headline CPI: 4.1% -0.4%Core CPI: 4.1% 1.8%

% chg vs. prior yearCPI Components

Weight in CPI

12-month Change

Food & Bev. 15.8% 4.7%

Housing 43.4% 2.0%

Apparel 3.7% 0.8%

Transportation 15.3% -11.0%

Medical Care 6.4% 2.8%

Recreation 5.7% 1.9%

Educ. & Comm. 6.3% 3.6%

Other 3.4% 3.2%

Headline CPI 100.0% 0.2%

Less:Energy 7.6% -18.5%

Food 14.6% 4.8%

Core CPI 77.7% 1.8%

13

Credit Conditions


'96 '98 '00 '02 '04 '06 '08

0%

1%

2%

3%

4%

5%

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09-40%

-20%

0%

20%

40%

60%

80%

100%

'92 '94 '96 '98 '00 '02 '04 '06 '081%

2%

3%

4%

5%

6%

7%

Lending Standards: Consumer Loans Net percent of banks reporting tighter lending standards

Delinquency Rates All banks, seasonally adjusted

6.3%

2.6%Mar. 31, 2009:

1.0%

Oct. 10, 2008: 4.6%

LIBOR Spread over Treasuries (“TED Spread”) 3-month LIBOR – 3-month Treasury

15-yr average: 0.6%

Commercial and Industrial LoansConsumer Loans

Commercial and Industrial LoansConsumer LoansResidential Mortgages

4.2%

64%

58%

Source: Federal Reserve, U.S. Treasury, FactSet, JPMorgan Asset Management. All data reflect most recently available releases. Delinquent loans are defined as 30 days or more past due. Data as of 03/31/09.

Source: British Bankers Association, U.S. Treasury, JPMorgan Asset Management.



14

Interest Rates and Yield Curves


0%

1%

2%

3%

4%

5%

6%

7%

3-mo. 6-mo. 1-yr. 2-yr. 5-yr. 10-yr. 30-yr.

Global Yield Curves: U.S., U.K., Euro Zone & JapanYield %

U.S.

Japan

U.K.

Euro Zone

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '090%

1%

2%

3%

4%

5%

6%

7%

Global Policy Rates: U.S., U.K., Euro Zone & Japan

U.K.

Euro Zone

U.S.

Japan

Source: FRB, Bank of England, European Central Bank, Bank of Japan, JPMorgan Asset Management.


Source: EcoWin, FactSet, JPMorgan Asset Management.



15

Fixed Income Sectors Returns as of 3/31/2009


1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1Q09

EMD Treas. EMD EMD Corp. TIPS High Yield EMD EMD High Yield TIPS Treas. High Yield

13.2% 10.0% 23.1% 13.7% 10.3% 16.7% 29.0% 11.9% 12.3% 11.8% 11.6% 13.7% 6.0%

High Yield Barclays Agg High Yield Treas. Barclays

Agg EMD EMD High Yield Balance EMD Treas. MBS TIPS

12.8% 8.7% 2.4% 13.5% 8.4% 12.2% 26.9% 11.1% 3.6% 10.0% 9.0% 8.3% 5.5%

Corp. Corp. TIPS TIPS MBS Treas. TIPS TIPS Muni MBS Barclays Agg

Barclays Agg EMD

10.2% 8.6% 2.4% 13.2% 8.2% 11.8% 10.6% 6.3% 3.5% 5.2% 7.0% 5.2% 4.8%Barclays

Agg MBS MBS Muni TIPS Barclays Agg Balance Balance TIPS Balance MBS Balance Muni

9.7% 7.0% 1.9% 11.7% 7.9% 10.3% 10.0% 6.0% 2.8% 5.1% 6.9% -1.4% 4.2%

Treas. Muni Balance Barclays Agg Balance Corp. Corp. Corp. Treas. Muni Balance TIPS MBS

9.6% 6.5% 1.6% 11.6% 6.8% 10.1% 8.2% 5.4% 2.8% 4.8% 6.2% -2.4% 2.2%

MBS Balance Barclays Agg MBS Treas. Balance Muni MBS High Yield Barclays

Agg EMD Muni Balance

9.5% 5.3% -0.8% 11.2% 6.7% 10.0% 5.3% 4.7% 2.7% 4.3% 5.2% -2.5% 1.8%

Muni TIPS Corp. Balance High Yield Muni Barclays Agg Muni MBS Corp. Corp. Corp. Barclays

Agg9.2% 3.9% -2.0% 10.2% 5.3% 9.6% 4.1% 4.5% 2.6% 4.3% 4.6% -4.9% 0.1%

High Yield Muni Corp. Muni MBS MBS Barclays Agg

Barclays Agg Treas. Muni EMD Treas.

1.9% -2.1% 9.1% 5.1% 8.7% 3.1% 4.3% 2.4% 3.1% 3.4% -14.7% -1.3%

EMD Treas. High Yield EMD High Yield Treas. Treas. Corp. TIPS High Yield High Yield Corp.

-11.6% -2.6% -5.9% 1.5% -1.4% 2.2% 3.5% 1.7% 0.4% 1.9% -26.2% -1.9%

Source: Barclays Capital, FactSet, JPMorgan Asset Management.

Past performance is not indicative of future returns. Fixed income sectors shown above are provided by Barclays Capital and are represented by: Barclays Capital U.S. Aggregate Index; MBS: Fixed Rate MBS Index; Corporate: U.S. Corporates; Municipals: Muni Bond Index; Emerging Debt: Emerging Markets Index; High Yield: Corporate High Yield Index; Treasuries: Barclays Capital U.S. Treasury. TIPS: Barclays Capital Real TIPS.

The “balanced” portfolio assumes the following weights: 10% in MBS, 20% in Corporate, 15% in Municipals, 10% in Emerging Debt, 10% in High Yield, 25% in Treasuries, 10% in TIPS. Balanced portfolio assumes annual rebalancing.


16

Equity Asset Class Returns as of 3/31/2009


Source: FactSet, Russell Investment Group, JPMorgan Asset Management.

All data are based on Russell Indexes, and represent total return for stated period. Small company stocks may be subject to a higher degree of market risk than the securities of more established companies because they tend to be more volatile and less liquid. Each style is representative of corresponding Russell style index. Past performance is not indicative of future returns. Please see disclosure page at end for index definitions. Data are as of 03/31/09.

Large Value = Russell 1000 Value Index Large Growth = Russell 1000 Growth Index

Mid Value = Russell Mid Cap Value Index Mid Growth = Russell Mid Cap Growth Index

Small Value = Russell 2000 Value Index Small Growth = Russell 2000 Growth Index

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1Q09Large Value

Large Growth

Mid Growth

Small Value

Small Value

Mid Value

Small Growth

Mid Value

Mid Value

Small Value

Large Growth

Small Value

Mid Growth

35.2% 38.7% 51.3% 22.8% 14.0% -9.6% 48.5% 23.7% 12.7% 23.5% 11.8% -28.9% -3.4%

Mid Value

Mid Growth

Small Growth

Mid Value

Mid Value

Small Value

Small Value

Small Value

Mid Growth

Large Value

Mid Growth

Large Value

Large Growth

34.4% 17.9% 43.1% 19.2% 2.3% -11.4% 46.0% 22.3% 12.1% 22.2% 11.4% -36.9% -4.1%

Small Value

Large Value

Large Growth

Large Value

Large Value

Large Value

Mid Growth

Large Value

Large Value

Mid Value

Small Growth

Large Growth

Small Growth

31.8% 15.6% 33.2% 7.0% -5.6% -15.5% 42.7% 16.5% 7.1% 20.2% 7.0% -38.4% -9.7%

Large Growth

Mid Value

Large Value

Mid Growth

Small Growth

Mid Growth

Mid Value

Mid Growth

Large Growth

Small Growth

Large Value

Mid Value

Mid Value

30.5% 5.1% 7.4% -11.8% -9.2% -27.4% 38.1% 15.5% 5.3% 13.3% -0.2% -38.4% -14.7%

Mid Growth

Small Growth

Mid Value

Large Growth

Mid Growth

Large Growth

Large Value

Small Growth

Small Value

Mid Growth

Mid Value

Small Growth

Large Value

22.5% 1.2% -0.1% -22.4% -20.2% -27.9% 30.0% 14.3% 4.7% 10.7% -1.4% -38.5% -16.8%

Small Growth

Small Value

Small Value

Small Growth

Large Growth

Small Growth

Large Growth

Large Growth

Small Growth

Large Growth

Small Value

Mid Growth

Small Value

13.0% -6.5% -1.5% -22.4% -20.4% -30.3% 29.8% 6.3% 4.2% 9.1% -9.8% -44.3% -19.6%


17

Source: Standard & Poor’s, Russell Investment Group, JPMorgan Asset Management. This information is not intended to be used as investment advice. For information only related to a general overview of the market. For plan sponsor use only.

-3.002.57-6.92-6.732.57-1.88-1.43-7.648.001.79-4.2210 Year Annualized Return

5.915.793.047.484.505.0810.513.5311.418.513.8215 Year Annualized Return

12.0x10.9x12.3x14.2x17.1x10.9x10.5x9.7x13.7x12.5x13.0xForward P/E Ratio

11.1x10.6x12.2x13.1x12.1x8.5x12.6x13.1x7.1x13.2x12.9xTrailing P/E Ratio

-4.764.791.26-4.49-1.42-5.95-2.29-19.069.570.94-7.995 Year Annualized Return

19.9x14.5x18.7x27.4x20.2x20.2x24.9x15.5x19.4x21.8x19.2xTrailing 20-year Average P/E Ratio

-13.06-2.54-4.77-10.46-10.37-17.40-6.85-33.15-4.11-0.92-15.133 Year Annualized Return

-38.09-29.66-25.17-30.07-45.11-50.51-19.74-63.03-37.95-22.64-35.061 Year Annualized Return

-11.01-10.79-7.134.30-2.05-20.88-8.00-28.82-11.57-10.54-8.091Q09 Return

7.3%7.3%3.3%3.2%7.7%14.4%20.5%17.7%10.0%8.5%Russell 1000 Value Weight (%)

1.8%0.8%31.1%4.2%11.9%14.9%3.3%7.9%13.9%10.2%Russell 1000 Growth Weight (%)

4.3%4.0%18.0%3.3%9.7%15.3%10.8%13.0%12.8%8.8%S&P 500 Weight (%)

Con

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Con

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Ener

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Fina

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ls

Hea

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Indu

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Mat

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Tech

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Tele

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S&P

500

Inde

x

Util

ities

S&P Index Sectors – Performance as of 3/31/2009


18

World Equity Market Returns as of 3/31/2009


Source: MSCI Inc., Standard & Poor’s, FactSet, JPMorgan Asset Management.

All data are reported in USD and represent total return including the reinvestment of dividends. Past results are not indicative of future returns. International investing involves a greater degree of risk and volatility. Changes in currency exchange rates and political and economic climate can raise or lower returns.

Please see disclosure page for index definitions.

Note: EAFE Small Cap unavailable prior to 2002.


1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1Q09

S&P 500MSCI

Europe Ex-UK

MSCI EME

MSCI Europe Ex-UK

MSCI EME

MSCI EME

MSCI EME

MSCI EME

MSCI EME

MSCI Europe Ex-UK

MSCI EME

MSCI Japan

MSCI EME

33.4% 34.0% 66.4% -7.1% -2.4% -6.0% 56.3% 26.0% 34.5% 36.4% 39.8% -29.1% 1.0%

MSCI Europe Ex-UK

S&P 500 Pacific Ex-Japan S&P 500 Pacific Ex-

JapanPacific Ex-

JapanPacific Ex-

Japan

MSCI Europe Ex-UK

MSCI Japan

Pacific Ex-Japan

Pacific Ex-Japan S&P 500 Pacific Ex-

Japan

25.0% 28.6% 64.7% -9.1% -3.8% -8.3% 47.0% 22.4% 25.6% 33.2% 31.7% -37.0% -2.2%

MSCI UK MSCI UK MSCI Japan MSCI UK S&P 500 MSCI

Japan

MSCI Europe Ex-UK

MSCI UK Pacific Ex-Japan

MSCI EME

MSCI Europe Ex-UK

MSCI Europe Ex-UK

MSCI UK

22.6% 17.8% 61.8% -11.5% -11.9% -10.1% 43.6% 19.6% 23.2% 32.6% 17.5% -45.0% -10.7%

MSCI EME

MSCI Japan S&P 500 MSCI

Japan MSCI UK MSCI UK MSCI Japan

Pacific Ex-Japan

MSCI Europe Ex-UK

MSCI UK MSCI UK MSCI UK S&P 500

-11.6% 5.3% 21.0% -28.1% -14.1% -15.2% 36.2% 17.7% 11.3% 30.7% 8.4% -48.3% -11.0%

MSCI Japan

Pacific Ex-Japan

MSCI Europe Ex-UK

MSCI EME

MSCI Europe Ex-UK

MSCI Europe Ex-UK

MSCI UK MSCI Japan MSCI UK S&P 500 S&P 500 Pacific Ex-

Japan

MSCI Europe Ex-UK

-23.6% -7.8% 17.8% -30.6% -22.0% -19.9% 32.1% 16.0% 7.4% 15.8% 5.5% -50.0% -16.1%

Pacific Ex-Japan

MSCI EME MSCI UK Pacific Ex-

JapanMSCI Japan S&P 500 S&P 500 S&P 500 S&P 500 MSCI

JapanMSCI Japan

MSCI EME

MSCI Japan

-40.3% -25.3% 12.5% -35.2% -29.3% -22.1% 28.7% 10.9% 4.9% 6.3% -4.1% -53.2% -16.6%

19

Index Definitions

All indexes are unmanaged and an individual can not invest directly in an index. Index returns do not include fees or expenses.

The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. This index includes a representative sample of 500 leading companies in leading industries of the U.S. economy. Although the S&P 500 Index focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total market.

The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index

The MSCI EAFE Index (Europe, Australia, Far East) is a widely recognized benchmark in the United States to measure international equity performance. It comprises 21 MSCI country indexes, representing the developed markets outside of North America.

The MSCI Emerging Markets Indexsm is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Index consists of the following 25 emerging market country indices: Argentina, Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

The MSCI Europe Indexsm is a free float-adjusted market capitalization index designed to measure developed market equity performance in Europe. The Index consists of the following developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

The MSCI Pacific Indexsm is a free float-adjusted market capitalization index designed to measure equity market performance in the Pacific region. The Index consists of the following developed market countries: Australia, Hong Kong, Japan, New Zealand and Singapore.

The Lehman Brothers U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The Index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indexes that are calculated and reported on a regular basis.

The U.S. Treasury Index is a component of the U.S. Government Index.

The Lehman Brothers High Yield Index covers the universe of fixed rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issues in non-EMG countries are included. Original issue zeroes, step-up coupon structures, and 144-As are also included.

The Lehman Brothers Emerging Markets Index includes USD-denominated debt from emerging markets in the following regions: Americas, Europe, Middle East, Africa, and Asia. As with other fixed income benchmarks provided by Lehman Brothers, the index is rules-based, which allows for an unbiased view of the marketplace and easy replicability.

The Lehman Brother Corporate Bond Index is the Corporate component of the U.S. Credit Index.

The Lehman Brother TIPS Index consists of Inflation–Protection securities issued by the U.S. Treasury.

The NAREIT Equity REIT Index is designed to provide the most comprehensive assessment of overall industry performance, and includes all tax-qualified real estate investment trusts (REITs) that are listed on the NYSE, the American Stock Exchange or the NASDAQ National Market List.

The CSFB Equity Market Neutral Index takes both long and short positions in stocks with the aim of minimizing exposure to the systematic risk of the market (i.e., a beta of zero).



Diversified Plan - Portfolio Summary

March 31, 2009

Section 2

21

Fund Performance Summary

Fund Name Asset Class (%) of Plan 3 Month YTD 1 Year 3 Year 5 Year 10 Year

Vanguard PRIME Money Market Instl Money Market 16.02% 0.37 0.37 2.28 4.18 3.58 3.58 0.08 N/AFederated US Treasury Cash Reserves N/A 0.01 0.01 0.88 3.18 2.85 3.01 0.25 N/A3 Month T-Bill 0.05 0.05 0.99 3.39 3.17 3.24Cat: Money Market 0.09 0.09 1.33 3.38 2.87 2.90Guaranteed Pooled Fund Fixed 7.93% 0.96 0.96 4.00 4.00 3.80 4.33 0.60 N/ACat: Stable Value 0.73 0.73 3.70 4.14 4.05 4.66Vanguard Intermediate Term Treasury Intermediate Government 8.39% 0.15 0.15 7.62 9.24 5.72 6.73 0.26 OutperformBarclays Intermediate Govt. Bond -0.08 -0.08 5.99 7.62 4.82 5.76Cat: Intermediate Government Bond 1.37 1.37 4.00 5.42 3.72 4.87PIMCO Total Return Admin Intermediate Bond 5.81% 1.43 1.43 2.71 6.39 4.66 6.17 0.68 OutperformBarclays Aggregate Bond 0.12 0.12 3.13 5.78 4.13 5.70Cat: Intermediate Term Bond 0.08 0.08 -4.94 1.34 1.36 3.92MainStay High Yield Bond I High Yield Bond 0.84% 4.95 4.95 -17.08 -3.70 0.78 3.61 0.87 OutperformML US High Yield Master 5.26 5.26 -19.95 -4.85 -0.26 2.68Cat: High Yield Bond 3.58 3.58 -20.97 -6.20 -1.42 0.99Eaton Vance Large Cap Value A Large Cap Value 8.94% -14.11 -14.11 -39.39 -11.09 -1.58 1.51 1.00 OutperformRussell 1000 Value -16.77 -16.77 -42.42 -15.40 -4.94 -0.62Cat: Large Value -12.73 -12.73 -39.36 -14.33 -4.89 -0.52Davis NY Venture Y Large Cap Blend 2.29% -12.03 -12.03 -41.78 -14.62 -5.03 -0.07 0.59 PerformTIAA-CREF Instl Growth and Income Instl 0.29% -7.88 -7.88 -33.90 -7.48 -0.85 N/A 0.50 OutperformFidelity Spartan U.S. Equity Index 10.30% -10.97 -10.97 -38.08 -13.09 -4.82 -3.10 0.09 N/AS&P 500 -11.01 -11.01 -38.09 -13.06 -4.76 -3.00Cat: Large Blend -10.01 -10.01 -38.13 -13.61 -4.92 -2.24Fidelity Contrafund Large Cap Growth 4.66% -6.44 -6.44 -33.79 -9.15 0.25 1.58 0.94 OutperformVanguard PRIMECAP Adm 2.03% -5.39 -5.39 -31.32 -9.06 -0.33 2.67 0.31 OutperformRussell 1000 Growth -4.12 -4.12 -34.28 -11.28 -4.38 -5.26Cat: Large Growth -4.58 -4.58 -35.94 -12.69 -4.54 -3.55Perkins Mid Cap Value Inv Mid Cap Value 0.96% -7.59 -7.59 -29.75 -7.58 0.62 9.60 1.06 OutperformTIAA-CREF Instl Mid Cap Value Instl 0.11% -9.11 -9.11 -40.86 -13.65 -1.68 N/A 0.52 OutperformRussell Mid Cap Value -14.67 -14.67 -42.51 -16.68 -3.81 3.13Cat: Mid Cap Value -11.31 -11.31 -38.65 -15.19 -4.38 4.40Vanguard Mid Cap Index Mid Cap Blend 1.10% -8.48 -8.48 -40.50 -15.83 -3.42 3.83 0.22 N/AMSCI US Mid Cap 450 Index/S&P 400 Mid Cap Idx* -8.41 -8.41 -40.44 -15.73 -3.33 4.12Cat: Mid Cap Blend -8.34 -8.34 -38.73 -15.13 -4.63 2.22Fund listed in green was added April 2009.* Secondary index is represented through May 16, 2003.

Annualized Return Expense Ratio

RETURNS AS OF 03/31/09

Evaluation Methodology

22

Fund Performance Summary (continued)

Fund Name Asset Class (%) of Plan 3 Month YTD 1 Year 3 Year 5 Year 10 Year

Munder Mid-Cap Core Growth A Mid Cap Growth 1.38% -6.95 -6.95 -40.75 -13.97 -2.02 7.35 1.31 PerformRussell Mid Cap Growth -3.36 -3.36 -39.58 -14.89 -3.91 -0.86Cat: Mid Cap Growth -4.32 -4.32 -38.47 -14.71 -4.13 0.19Allianz NFJ Small Cap Value Inst Small Value 0.32% -13.77 -13.77 -33.96 -9.63 0.80 8.44 0.82 OutperformLord Abbett Small Cap Value A 0.23% -12.10 -12.10 -34.56 -11.33 0.97 9.64 1.23 OutperformRussell 2000 Value Index -19.64 -19.64 -38.89 -17.54 -5.30 4.87Cat: Small Cap Value -15.63 -15.63 -38.57 -17.30 -5.25 5.02Vanguard Small Cap Index Small Blend 1.52% -13.49 -13.49 -39.11 -16.77 -4.82 2.42 0.23 N/AMSCI US Small Cap 1750 Index/Russell 2000 Idx* -13.52 -13.52 -39.23 -16.79 -4.80 2.30Cat: Small Cap Blend -13.05 -13.05 -39.07 -17.56 -5.24 3.81Royce Value Plus Instl Small Growth 1.49% -6.40 -6.40 -38.76 -15.99 -2.22 N/A 1.04 OutperformRussell 2000 Growth -9.74 -9.74 -36.36 -16.20 -5.37 -1.60Cat: Small Cap Growth -8.48 -8.48 -37.62 -17.22 -6.00 0.94American Funds New Perspective R4 Global 0.46% -7.16 -7.16 -37.72 -8.83 -0.26 2.77 0.75 OutperformMutual Discovery Z 0.59% -1.78 -1.78 -22.05 -3.39 5.64 8.57 1.02 OutperformMSCI WORLD -11.92 -11.92 -42.58 -13.77 -3.50 -2.24Cat: World Stock -9.35 -9.35 -41.70 -13.38 -3.06 0.29American Funds EuroPacific Growth R4 Foreign Large Equity 2.09% -7.91 -7.91 -40.53 -9.66 1.47 3.43 0.81 OutperformFidelity Spartan International Index 1.57% -15.93 -15.93 -46.13 -14.27 -2.14 -0.83 0.10 N/AMSCI EAFE ND -13.94 -13.94 -46.51 -14.47 -2.18 -0.84

Cat: Foreign Large Equity -12.68 -12.68 -46.39 -14.62 -2.48 -0.32BlackRock International Opportunities A Foreign Small / Mid Equity 0.65% -11.16 -11.16 -46.89 -11.36 3.74 12.95 1.58 OutperformMSCI EAFE ND -13.94 -13.94 -46.51 -14.47 -2.18 -0.84Cat: Foreign Small / Mid Equity -9.94 -9.94 -48.93 -16.97 -1.84 4.12DFA Emerging Markets Value I Emerging Markets 1.47% -2.36 -2.36 -50.30 -7.38 8.28 12.00 0.60 OutperformMSCI EM ND 1.02 1.02 -46.90 -7.88 6.25 8.14Cat: Diversified Emerging Markets -1.50 -1.50 -49.59 -10.41 4.05 7.78AIM Real Estate Instl Specialty - Real Estate 0.62% -27.77 -27.77 -54.90 -22.20 -5.56 6.11 0.83 OutperformDow Jones Wilshire REIT Index U.S. -33.92 -33.92 -60.66 -27.00 -9.44 3.71Cat: Specialty - Real Estate -29.54 -29.54 -58.44 -26.11 -9.73 3.38* Secondary index is represented through May 16, 2003.


Evaluation Methodology


23

Fund Performance Summary (continued)

Fu nd Name Asset Class (%) o f Plan 3 M onth YTD 1 Year 3 Year 5 Year 10 Year

T . Rowe Price Retiremen t Income Lifecycle F unds 1.92% -3.06 -3.06 -18.32 -3.48 0.43 N/A 0.55Cat: Retirement Incom e -3.66 -3.66 -18.88 -4.35 -0.91 1.42T . Rowe Price Retiremen t 2005 1.80% -4.05 -4.05 -21.95 -4.97 0.17 N/A 0.58Cat: T arget Date 2000-2010 -4.51 -4.51 -23.07 -5.90 -1.59 1.26T . Rowe Price Retiremen t 2010 2.80% -4.64 -4.64 -25.96 -6.83 -0.60 N/A 0.61Cat: T arget Date 2000-2010 -4.51 -4.51 -23.07 -5.90 -1.59 1.26T . Rowe Price Retiremen t 2015 5.10% -5.06 -5.06 -29.16 -8.32 -1.26 N/A 0.65Cat: T arget Date 2011-2015 -6.11 -6.11 -28.53 -8.25 -2.39 -0.13T . Rowe Price Retiremen t 2020 2.15% -5.58 -5.58 -32.06 -9.80 -1.93 N/A 0.68Cat: T arget Date 2016-2020 -6.44 -6.44 -29.48 -8.79 -2.22 -0.30T . Rowe Price Retiremen t 2025 1.24% -6.17 -6.17 -34.43 -10.99 -2.45 N/A 0.70Cat: T arget Date 2021-2025 -8.18 -8.18 -34.65 -11.21 -3.30 N/AT . Rowe Price Retiremen t 2030 0.76% -6.36 -6.36 -36.11 -11.88 -2.73 N/A 0.72Cat: T arget Date 2026-2030 -8.37 -8.37 -35.70 -11.90 -3.71 -1.12T . Rowe Price Retiremen t 2035 1.19% -6.55 -6.55 -37.16 -12.46 -3.14 N/A 0.73Cat: T arget Date 2031-2035 -9.44 -9.44 -37.43 -12.61 -3.97 N/AT . Rowe Price Retiremen t 2040 0.36% -6.59 -6.59 -37.15 -12.46 -3.11 N/A 0.73Cat: T arget Date 2036-2040 -9.41 -9.41 -38.19 -13.19 -4.15 -1.98T . Rowe Price Retiremen t 2045 0.31% -6.50 -6.50 -37.08 -12.42 N/A N/A 0.73Cat: T arget Date 2041-2045 -9.83 -9.83 -38.72 -13.27 -3.72 N/AT . Rowe Price Retiremen t 2050 0.04% -6.61 -6.61 -37.15 N/A N/A N/A 0.73Cat: T arget Date 2050+ -9.52 -9.52 -39.01 -13.39 -3.92 N/AT . Rowe Price Retiremen t 2055 0.26% -6.69 -6.69 -37.29 N/A N/A N/A 0.75Cat: T arget Date 2050+ -9.52 -9.52 -39.01 -13.39 -3.92 N/A

RETURNS AS OF 03/31/09Annu alized Return Exp ense

Ratio

24

T. Rowe Price Retirement Funds - Qualitative Analysis

T. Rowe Price Retirement Funds Asset Allocation

0%

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2055

2050

2045

2040

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2025

2020

2015

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2005

Incom

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International Equity Domestic Equity Fixed Income

T. Rowe Price Retirement FundsProvide Asset Allocation/Target Date Services Since 2002

Method of Investment Fund of FundsInvestment Strategy Active# of Underlying Funds 17# of Underlying Funds closed to new investments 2

# of Funds Avaliable 12Holdings Subadvised or Cloned NOGlide Path StaticTactical Strategies YesRebalance Trigger 5%Glide Path Extension 30 yearsNet Assets $23 billionAlternative Asset Classes Emerging Markets/ World Bond / Emerging Markets Bond

25

Portfolio XPress vs. T. Rowe Retirement Funds Performance

Fund 3 Month YTD 1 Year 3 Year 5 Year 10 YearPortfolio Xpress ( -30 years ) -1.88 -1.88 -10.75 0.88 3.09 N/A 0.58T. Rowe Price Retirement Income -3.06 -3.06 -18.32 -3.48 0.43 N/A 0.55Cat: Retirement Income -3.66 -3.66 -18.88 -4.35 -0.91 1.42 1.14Portfolio Xpress ( 0 years ) -4.23 -4.23 -19.90 -2.90 1.86 N/A 0.62T. Rowe Price Retirement 2010 -4.64 -4.64 -25.96 -6.83 -0.60 N/A 0.61Cat: Target Date 2000-2010 -4.51 -4.51 -23.07 -5.90 -1.59 1.26 1.19Portfolio Xpress ( 5 years ) -4.97 -4.97 -22.94 -4.13 1.56 N/A 0.65T. Rowe Price Retirement 2015 -5.06 -5.06 -29.16 -8.32 -1.26 N/A 0.65Cat: Target Date 2011-2015 -6.11 -6.11 -28.53 -8.25 -2.39 -0.13 1.21Portfolio Xpress ( 10 years ) -5.87 -5.87 -25.65 -5.41 1.07 N/A 0.65T. Rowe Price Retirement 2020 -5.58 -5.58 -32.06 -9.80 -1.93 N/A 0.68Cat: Target Date 2016-2020 -6.44 -6.44 -29.48 -8.79 -2.22 -0.30 1.24Portfolio Xpress ( 15 years ) -6.63 -6.63 -28.53 -6.79 0.61 N/A 0.67T. Rowe Price Retirement 2025 -6.17 -6.17 -34.43 -10.99 -2.45 N/A 0.70Cat: Target Date 2021-2025 -8.18 -8.18 -34.65 -11.21 -3.30 N/A 1.18Portfolio Xpress ( 20 years ) -7.49 -7.49 -31.50 -8.25 0.09 N/A 0.69T. Rowe Price Retirement 2030 -6.36 -6.36 -36.11 -11.88 -2.73 N/A 0.72Cat: Target Date 2026-2030 -8.37 -8.37 -35.70 -11.90 -3.71 -1.12 1.27Portfolio Xpress ( 25 years ) -8.26 -8.26 -33.99 -9.46 -0.36 N/A 0.69T. Rowe Price Retirement 2035 -6.55 -6.55 -37.16 -12.46 -3.14 N/A 0.73Cat: Target Date 2031-2035 -9.44 -9.44 -37.43 -12.61 -3.97 N/A 1.19Portfolio Xpress ( 30 years ) -8.70 -8.70 -35.45 -10.14 -0.54 N/A 0.72T. Rowe Price Retirement 2040 -6.59 -6.59 -37.15 -12.46 -3.11 N/A 0.73Cat: Target Date 2036-2040 -9.41 -9.41 -38.19 -13.19 -4.15 -1.98 1.28Portfolio Xpress ( 35 years ) -8.70 -8.70 -35.45 -10.14 -0.54 N/A 0.72T. Rowe Price Retirement 2045 -6.50 -6.50 -37.08 -12.42 N/A N/A 0.73Cat: Target Date 2041-2045 -9.83 -9.83 -38.72 -13.27 -3.72 N/A 1.21Portfolio Xpress ( 40 years ) -8.70 -8.70 -35.45 -10.14 -0.54 N/A 0.72T. Rowe Price Retirement 2050 -6.61 -6.61 -37.15 N/A N/A N/A 0.73Cat: Target Date 2045+ -9.52 -9.52 -39.01 -13.39 -3.92 N/A 1.21


26

Portfolio XPress Allocation (Underlying Holdings)

Foreign Equity

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40 35 30 25 20 15 10 5 0 Income

Years Until Retirement

Domestic Equity

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40 35 30 25 20 15 10 5 0 Income


Portfolio Xpress

T. Row e Price

Wells Fargo (Conservative Target Date)

MSTAR Category

27

Quantitative Analysis Summary

0%

25%

50%

100%

4.44%Top PossibleScore

95.56%Lowest Possible Score

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Fund Name Fund CategoryFund Wgt* 1Q09 4Q08 3Q08 2Q08

3 Year Average Fund

Score

Vanguard Intermediate Term Treasury Intermediate Govt 8.39% 23.68 21.46 23.17 24.33 21.46Barclays Int Govt BondPIMCO Total Return Admin Intermediate Bond 5.81% 11.90 12.41 16.24 15.13 12.41Barclays Aggregate BondMainStay High Yield Bond I High Yield Bond 0.84% 21.94 22.13 17.73 20.10 22.13ML US High Yield Master

Eaton Vance Large Cap Value A Large Value 8.94% 20.10 18.59 16.33 15.29 18.59Russell 1000 ValueDavis NY Venture Y Large Blend 2.29% 30.11 31.09 23.07 22.35 31.09

TIAA-CREF Growth and Income Instl 0.29% 23.70 24.74 24.90 24.89 24.74S&P 500 Index

Fidelity Contrafund Large Growth 4.66% 22.89 24.07 23.27 21.67 24.07

Vanguard PRIMECAP Adm 2.03% 17.35 16.69 15.01 15.43 16.69

Russell 1000 Growth

Perkins Mid Cap Value Inv Mid Cap Value 0.96% 15.75 16.18 15.23 14.97 16.18

TIAA-CREF Mid Cap Value Instl 0.11% 21.32 23.97 19.17 16.28 23.97

Russell Mid Cap Value

Munder Mid-Cap Core Growth A Mid Cap Growth 1.38% 28.89 26.63 28.13 28.10 26.63Russell Mid Cap Growth

Allianz NFJ Small Cap Value Instl Small Cap Value 0.32% 19.43 19.80 19.54 19.70 19.80

Lord Abbett Small Cap Value A 0.23% 19.27 20.25 17.58 19.41 20.25Russell 2000 Value

Royce Value Plus Instl Small Cap Growth 1.49% 19.24 19.31 14.63 12.23 19.31Russell 2000 Growth

American Funds New Perspective R4 World Stock 0.46% 22.48 25.23 23.41 22.16 25.23

Mutual Discovery Z 0.59% 17.91 17.51 17.53 22.29 17.51MSCI World

American Funds EuroPacific Growth R4 Foreign Large Equity 2.09% 15.70 17.89 16.84 17.56 17.89MSCI EAFE

BlackRock International Opportunities A Foreign Sm/Mid Equity 0.65% 15.63 15.50 16.30 16.23 15.50MSCI EAFEDFA Emerging Markets Value I Emerging Markets 1.47% 11.29 11.54 9.79 11.85 11.54MSCI EAFE

AIM Real Estate Instl Specialty-Real Estate 0.62% 13.97 15.34 14.61 16.24 15.34DJ Wilshire REIT Index

PLAN WEIGHTED SCORE: 19.93 19.53*Fund weightings are remeasured by assigning a proportionate weighting to each fund included in the Evaluation Methodology Score.

EVALUATION METHODOLOGY SCORE

28

0%

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0% - 24.99% Outperform25% - 49.99% Perform50% - 100% Underperform



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Vanguard Intermediate US TreasuryRanking vs. Peers - Intermediate Govt BondIntermediate Govt Bond Universe = 423 Funds 3/31/2009

Total Return 0.50%10 Year 0.00%5 Year 0.00%3 year 1.00%

Rolling 12-month - 10 years 5.00%Rolling 36-Month - 10 years 6.00%

Sharpe Ratio 11.90%10 Year 14.00%5 Year 12.00%3 year 11.00%

Information Ratio 51.70%10 Year 52.00%5 Year 46.00%3 year 55.00%

Up Capture Ratio - 10 years 1.00%Down Capture Ratio - 10 years 97.00%

Style Consistency to Benchmark - Lehman US Intermediate Govt Index 20.00%R2 20.00%Avg Credit Quality 20.00%

Expense Ratio 0.26 20.00%

Total Average Ranking 23.68%STATUS OUTPERFORM

Total Average Ranking

Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

29

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100%




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PIMCO Total Return AdminRanking vs. Peers - Intermediate BondIntermediate Bond Universe = 1211 Funds 3/31/2009






Style Consistency to Benchmark - Lehman US Aggregate Bond Index 30.00%R2 40.00%Avg Credit Quality 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

30

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100%




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MainStay High Yield Bond IRanking vs. Peers - High Yield BondHigh Yield Bond Universe = 568 Funds 3/31/2009






Style Consistency to Benchmark - Merrill Lynch High Yield US Master 30.00%R2 40.00%Avg Credit Quality 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

31

0%

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100%




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Eaton Vance Large Cap Value ARanking vs. Peers - Large Cap ValueLarge Cap Value Universe = 1427 Funds 3/31/2009






Style Consistency to Benchmark - Russell 1000 Value 33.33%R2 40.00%Return Style 40.00%Holding Style 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

32

0%

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100%




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Davis NY Venture YRanking vs. Peers - Large Cap BlendLarge Cap Blend Universe = 1830 Funds 3/31/2009






Style Consistency to Benchmark - S&P 500 33.33%R2 40.00%Return Style 40.00%Holding Style 20.00%


Total Average Ranking 30.11%STATUS PERFORM


Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

33

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TIAA-CREF Growth & Income InstlRanking vs. Peers - Large Cap BlendLarge Cap Blend Universe = 1830 Funds 3/31/2009

Total Return 2.00%10 Year N/A5 Year 2.00%3 Year 2.00%


Sharpe Ratio 15.80%10 Year N/A5 Year 20.00%3 Year 13.00%

Information Ratio 15.80%10 Year N/A5 Year 20.00%3 Year 13.00%






Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

34

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Fidelity ContrafundRanking vs. Peers - Large Cap GrowthLarge Cap Growth Universe = 1902 Funds 3/31/2009






Style Consistency to Benchmark - Russell 1000 Growth 40.00%R2 40.00%Return Style 60.00%Holding Style 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

35

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Vanguard PRIMECAP AdmRanking vs. Peers - Large Cap GrowthLarge Cap Growth Universe = 1902 Funds 3/31/2009

Total Return 4.60%10 Year 1.00%5 Year 3.00%3 Year 7.00%


Sharpe Ratio 20.60%10 Year 6.00%5 Year 23.00%3 Year 25.00%

Information Ratio 19.60%10 Year 6.00%5 Year 23.00%3 Year 23.00%






Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

36

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100%




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Perkins Mid Cap Value InvRanking vs. Peers - Mid Cap ValueMid Cap Value Universe = 360 Funds 3/31/2009






Style Consistency to Benchmark - Russell Mid Cap Value 46.67%R2 60.00%Return Style 20.00%Holding Style 60.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

37

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TIAA-CREF Mid Cap Value InstlRanking vs. Peers - Mid Cap ValueMid Cap Value Universe = 360 Funds 3/31/2009

Total Return 20.60%10 Year NA5 Year 11.00%3 year 27.00%


Sharpe Ratio 22.20%10 Year NA5 Year 18.00%3 year 25.00%

Information Ratio 24.40%10 Year NA5 Year 19.00%3 year 28.00%


Style Consistency to Benchmark - Russell Mid Cap Value 26.67%R2 20.00%Return Style 40.00%Holding Style 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

38

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Munder Mid Cap Core Growth ARanking vs. Peers - Mid Cap GrowthMid Cap Growth Universe = 987 Funds 3/31/2009






Style Consistency to Benchmark - Russell Mid Cap Growth 40.00%R2 60.00%Return Style 40.00%Holding Style 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

39

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Allianz NFJ Small Cap Value InstlRanking vs. Peers - Small Cap ValueSmall Cap Value Universe = 393 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

40

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Lord Abbett Small Cap Value ARanking vs. Peers - Small Cap ValueSmall Cap Value Universe =393 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

41

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Royce Value Plus InstlRanking vs. Peers - Small Cap GrowthSmall Cap Growth Universe = 891 Funds 3/31/2009

Total Return 26.20%10 Year NA5 Year 10.00%3 year 37.00%


Sharpe Ratio 31.40%10 Year NA5 Year 23.00%3 year 37.00%

Information Ratio 34.20%10 Year NA5 Year 24.00%3 year 41.00%






Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

42

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American Funds New Perspective R4Ranking vs. Peers - World StockWorld Stock Universe = 519 Funds 3/31/2009






Style Consistency to Benchmark - MSCI The World Index NAR2 NAReturn Style NAHolding Style NA




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

43

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Mutual Discovery ZRanking vs. Peers - World StockWorld Stock Universe = 519 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

44

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American Funds EuroPacific Growth R4Ranking vs. Peers - Foreign Large EquityForeign Large Equity Universe = 1190 Funds 3/31/2009






Style Consistency to Benchmark - MSCI EAFE NAR2 NAReturn Style NAHolding Style NA




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

45

0%

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100%




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BlackRock Intl Opportunities ARanking vs. Peers - Foreign Small Mid EquityForeign Small Mid Equity Universe = 179 Funds 3/31/2009






Style Consistency to Benchmark - MSCI EAFE NAR2 NAReturn Style NAHolding Style NA




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

46

0%

25%

50%

100%




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DFA Emerging Markets Value IRanking vs. Peers - Emerging MarketsEmerging Markets Universe = 257 Funds 3/31/2009






Style Consistency to Benchmark - MSCI EMF NAR2 NAReturn Style NAHolding Style NA




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

47

0%

25%

50%

100%




Out

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AIM Real Estate InstlRanking vs. Peers - Real EstateReal Estate Universe = 260 Funds 3/31/2009






Style Consistency to Benchmark - DJ Wilshire REIT 20.00%R2 20.00%Return Style NAHolding Style NA




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

48

Overlap Analysis

0 - 30%31 – 50%51% and above

Eat

on V

ance

Lar

ge C

ap V

alue

Fide

lity

Con

trafu

nd

Allia

nz N

FJ S

mal

l Cap

Val

ue

Van

guar

d S

mal

l Cap

Inde

x

Lord

Abb

ett S

mal

l Cap

Val

ue

Per

kins

Mid

Cap

Val

ue

Dav

is N

Y V

entu

re

Mun

der M

id C

ap C

ore

Gro

wth

Van

guar

d M

id C

ap In

dex

Roy

ce V

alue

Plu

s

Van

guar

d P

RIM

EC

AP

TIA

A-CR

EF

Mid

Cap

Val

ue

Fide

lity

Spar

tan

US E

quity

Inde

x

TIA

A-C

REF

Gro

wth

& In

com

e

Eaton Vance Large Cap Value -- 17 0 0 0 10 12 0 0 0 10 7 36 32

Fidelity Contrafund 17 -- 0 1 0 9 13 1 6 1 16 5 30 28

Allianz NFJ Small Cap Value 0 0 -- 10 10 2 0 3 3 1 0 2 0 1

Vanguard Small Cap Index 0 1 10 -- 12 1 0 9 0 2 0 4 0 0

Lord Abbett Small Cap Value 0 0 10 12 -- 4 0 3 2 5 1 4 0 0

Perkins Mid Cap Value 10 9 2 1 4 -- 4 4 10 4 7 10 12 9

Davis NY Venture 12 13 0 0 0 4 -- 1 1 0 9 4 13 10

Munder Mid Cap Core Growth 0 1 3 9 3 4 1 -- 7 3 0 7 1 1

Vanguard Mid Cap Index 0 6 3 0 2 10 1 7 -- 2 4 18 7 7

Royce Value Plus 0 1 1 2 5 4 0 3 2 -- 1 1 0 0

Vanguard PRIMECAP 10 16 0 0 1 7 9 0 4 1 -- 5 20 15

TIAA-CREF Mid Cap Value 7 5 2 4 4 10 4 7 18 1 5 -- 10 14

Fidelity Spartan US Equity Index 36 30 0 0 0 12 13 1 7 0 20 10 -- 48

TIAA-CREF Growth & Income 32 28 1 0 0 9 10 1 7 0 15 14 48 --

49

Range of InvestmentsLower risk/lower potential reward Higher risk/higher potential reward

BALANCEDCAPITAL

PRESERVATION INCOME HYBRID VALUE BLEND GROWTH

LARGE VALUE- Eaton Vance Large Cap Value

LARGE BLEND- Davis NY Venture- TIAA-CREF Instl Grth and Income- Fidelity Spartan US Equity Idx

LARGE GROWTH- Fidelity Contrafund- Vanguard PRIMECAP

MID CAP VALUE- Perkins Mid Cap Value- TIAA-CREF Instl Mid Cap Value

MID CAP BLEND- Vanguard Mid Cap Index

MID CAP GROWTH- Munder Mid-Cap Core Growth

SMALL CAP VALUE- Allianz NFJ Small Cap Value Inst- Lord Abbett Small Cap Value

SMALL CAP BLEND- Vanguard Small Cap Index

SMALL CAP GROWTH- Royce Value Plus

SPEC

IALT

Y REAL ESTATE- AIM Real Estate

WORLD STOCK- American Funds New Perspective- Mutual Discovery

FOREIGN LARGE CAP- American Funds EuroPacific Growth- Fidelity Spartan International Index

FOREIGN SM/MID CAP- BlackRock International Opportunities

EMERGING MARKETS- DFA Emerging Markets Value

EQUITYFIXED INCOME

DO

MES

TIC

FOR

EIG

N

FIXED- Vanguard PRIME MMkt- Guaranteed Pooled

INTERMEDIATE GOVERNMENT- Vanguard Int Term Treasury

INTERMEDIATE CORPORATE- PIMCO Total Return

HIGH YIELD BOND- MainStay High Yield Bond

50

Management Style (Returns-based)D

omes

tic E

quity

Fore

ign

Equi

ty

Manager Style

April 2006 - March 2009

USD, single data window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Europe - Asia

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity IndicesAmerican Funds New Perspective R4Mutual Discovery ZAmerican Funds EuroPacific Gr R4Fidelity Spartan International Index InvBlackRock International Opp ADFA Emerging Markets Value I

Manager Style


USD, 36-month centered window; exp. weighted, rescaled

-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Europe - Asia

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity IndicesAmerican Funds New Perspective R4Mutual Discovery ZAmerican Funds EuroPacific Gr R4Fidelity Spartan International Index InvBlackRock International Opp ADFA Emerging Markets Value I

Manager StyleApril 2006 - March 2009


-2

-1

0

1

2

Smal

l - L

arge

-2 -1 0 1 2

Value - Growth

Top Value Top Growth

Mid Value Mid Growth

Sm Value Sm Growth

Russell Style IndicesEaton Vance Large-Cap Value ADavis NY Venture YTIAA-CREF Growth & Income InstlFidelity Spartan U.S. Equity Index InvFidelity ContrafundVanguard PRIMECAP AdmPerkins Mid Cap Value InvestorTIAA-CREF Mid-Cap Value InstlVanguard Mid Capitalization IndexMunder Mid-Cap Core Growth AAllianz NFJ Small Cap Value InstlLord Abbett Small-Cap Value AVanguard Small Cap IndexRoyce Value Plus Instl

Manager StyleApril 1999 - March 2009


-2

-1

0

1

2

Smal

l - L

arge

-2 -1 0 1 2

Value - Growth



Sm Value Sm Growth

Russell Style IndicesEaton Vance Large-Cap Value ADavis NY Venture YTIAA-CREF Growth & Income InstlFidelity Spartan U.S. Equity Index InvFidelity ContrafundVanguard PRIMECAP AdmPerkins Mid Cap Value InvestorTIAA-CREF Mid-Cap Value InstlVanguard Mid Capitalization IndexMunder Mid-Cap Core Growth AAllianz NFJ Small Cap Value InstlLord Abbett Small-Cap Value AVanguard Small Cap IndexRoyce Value Plus Instl

51

Portfolio Analysis

Portfolio Composition

Sector Weightings

Non-US Stocks, 10.64%

Cash, 22.08%

US Stocks, 41.74%

Bonds, 24.90%

Other, 0.64%

1st Qtr - 2009 S&P 500 IndexSoftware 3.38% 4.40%Hardware 7.42% 10.80%Media 2.81% 2.50%Telecommunication 3.95% 4.00%Healthcare 13.98% 15.30%Consumer Services 7.95% 8.90%Business Services 6.49% 5.20%Financial Services 16.75% 10.80%Consumer Goods 9.60% 10.20%Industrial Materials 12.70% 10.80%Energy 11.19% 13.10%Utilities 3.91% 4.20%

52

Portfolio Return vs. Custom Benchmark

Annualized Returns Benchmark Weightings

-8%

-6%

-4%

-2%

0%

2%

3 Year 5 Year

Pepperdine Diversified 403(b) PlanCustom Benchmark - Index (Passive)Custom Benchmark - Category (Active)

Fund Name Category (Active) Index (Passive) WeightVanguard Prime Money Market Money Market 3 Month T-Bill 16.02%Guaranteed Pooled Fund Stable Value Cat: Stable Value 7.93%Vanguard Int Term Treasury Intermediate Govt Bond Barclays Int Government Bond 8.39%PIMCO Total Return Admin Intermediate Bond Barclays Aggregate Bond 5.81%MainStay HY Bond I High Yield Bond ML US High Yield Master 0.84%Eaton Vance Large Cap Value A Large Cap Value Russell 1000 Value 8.94%Davis NY Venture A Large Cap Blend S&P 500 Index 2.29%TIAA-CREF G&I Instl Large Cap Blend S&P 500 Index 0.29%Fidelity Spartan US Equity Index Large Cap Blend S&P 500 Index 10.30%Fidelity Contrafund Large Cap Growth Russell 1000 Growth 4.66%Vanguard PRIMECAP Large Cap Growth Russell 1000 Growth 2.03%Perkins Mid Cap Value Inv Mid Cap Value Russell Mid Cap Value 0.96%TiAA-CREF Mid Cap Value Instl Mid Cap Value Russell Mid Cap Value 0.11%Vanguard Mid Cap Index Mid Cap Blend MSCI US Prm MC 450 Idx/SP 400MC Idx 1.10%Munder Mid Cap Core Growth A Mid Cap Growth Russell Mid Cap Growth 1.38%Allianz NFJ Small Cap Val Instl Small Cap Value Russell 2000 Value 0.32%Lord Abbett Small Cap Value A Small Cap Value Russell 2000 Value 0.23%Vanguard Small Cap Index Small Cap Blend MSCI US SC 1750/Russell 2000 Index 1.52%Royce Value Plus Instl Small Cap Growth Russell 2000 Growth 1.49%American Funds New Perspective R4 W orld Stock MSCI World 0.46%Mutual Discovery Z W orld Stock MSCI World 0.59%American Funds EuroPac Grth R4 Foreign Large Equity MSCI EAFE 2.09%Fidelity Spartan International Idx Foreign Large Equity MSCI EAFE 1.57%BlackRock International Opp A Foreign Sm/Mid Equity MSCI EAFE 0.65%DFA Emerging Markets Value I Emerging Markets MSCI Emerging Markets 1.47%AIM Real Estate Instl Real Estate DJ Wilshire REIT Index 0.62%T. Rowe Price Retirement Funds Target Dates Cat: Target Dates 17.93%

3 YR 3 YR 3 YR ExpensePerformance as of March 31, 2009 3 Month 1 Year 3 Year 5 Year 10 Year Std Dev Mean Sharpe Ratio

Pepperdine Diversified 403(b) Plan -5.04% -22.03% -4.38% 0.68% 2.96% 10.66 -4.38 -0.69 0.52Custom Benchmark - Index (Passive) -5.82% -21.28% -5.64% -0.69% 1.15% N/A N/A N/A N/A

Custom Benchmark - Category (Active) -5.01% -23.21% -6.19% -0.92% 1.28% 10.74 -6.19 -0.87 0.68*

Annualized Returns

*Custom expense ratio represents the weighted expense (based upon current allocation) of Institutional and Retirement share classes in each asset category.

Diversified Plan - Asset Allocation

March 31, 2009

Section 3

54

Asset Allocation by Fund (1 of 2)

Fund # of Balances % of Assets Assets ($) Evaluation Methodology

Vanguard Money Market Instl 306 16.02% 12,781,836$ N/A

Fidelity Spartan US Equity Index 609 10.30% 8,222,253$ N/A

Eaton Vance Large Cap Value 484 8.94% 7,134,420$ Outperform

Vanguard Intermediate Term Treasury 354 8.39% 6,697,830$ Outperform

Guaranteed Pooled Fund 276 7.93% 6,329,013$ N/A

PIMCO Total Return Admin 401 5.81% 4,639,420$ Outperform

T. Rowe Price Retirement 2015 205 5.10% 4,069,911$ N/A

Fidelity Contrafund 452 4.66% 3,716,456$ Outperform


Davis New Venture Y 308 2.29% 1,828,855$ Perform


American Funds EuroPacific R4 352 2.09% 1,670,262$ Outperform

Vanguard PRIMECAP Adm 294 2.03% 1,618,754$ Outperform

T. Rowe Price Retirement Income 105 1.92% 1,531,868$ N/A


Fidelity Spartan International Index 341 1.57% 1,254,889$ N/A

Vanguard Small Cap Index 302 1.52% 1,212,253$ N/A

Royce Value Plus Instl 274 1.49% 1,188,193$ Outperform

DFA Emerging Markets Value I 296 1.48% 1,177,131$ Outperform

Munder Mid Cap Core Growth A 255 1.38% 1,101,548$ PerformT. Rowe Price Retirement 2025 138 1.24% 988,932$ N/A

55

Asset Allocation by Fund (2 of 2)

Fund # of Balances % of Assets Assets ($) Evaluation Methodology

T. Rowe Price Retirement 2035 147 1.19% 948,768$ N/A

Vanguard Mid Cap Index 301 1.10% 879,948$ N/A

Perkins Mid Cap Value Inv 260 0.96% 767,694$ Outperform

MainStay High Yield Bond I 242 0.84% 670,548$ Outperform


BlackRock International Opportunity A 245 0.65% 517,112$ Outperform

AIM Real Estate Instl 247 0.62% 493,693$ Outperform

Mutual Discovery Z 207 0.59% 469,082$ Outperform

American Funds New Perspective R4 211 0.46% 368,005$ Outperform


Allianz NFJ Small Cap Value Instl 212 0.32% 258,629$ Outperform


TIAA-CREF Growth & Income Instl 194 0.29% 233,079$ Outperform


Lord Abbett Small Cap Value A 203 0.23% 181,006$ Outperform

TIAA-CREF Mid Cap Value Instl 192 0.11% 91,117$ Outperform


Sub Total 100.00% 79,802,378$

Personal Choice 3 858,062$

Total 1,880 100.00% 80,660,440$

56

Asset Allocation by Category (%)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Fixed Bond Large Cap Mid Cap Small Cap International Specialty Target Date

Large Cap Value Large Cap Blend Large Cap Growth Mid Cap Value Mid Cap BlendMid Cap Growth Small Cap Value Small Cap Blend Small Cap Growth

57

Asset Allocation by Age Group

Age 20-29, 0.61%

Age 30-39, 6.96%

Age 40-49, 20.52%

Age 50-59, 34.77%

Age 60-69, 31.52%

Age 70+, 5.63%

Age 20-29 $487,432

Age 30-39 $5,553,494

Age 40-49 $16,371,680

Age 50-59 $27,747,748

Age 60-69 $25,149,840

Age 70+ $4,492,185

$79,802,378

58

Plan Demographics (1 of 2)

Fund Total per Fund Age 20-29 Age 30-39 Age 40-49 Age 50-59 Age 60-69 Age > 70

Fidelity Spartan US Equity Index 609 31 163 179 151 74 11

Eaton Vance Large Cap Value 484 29 105 154 129 56 11

Fidelity Contrafund 452 30 127 137 107 44 7

PIMCO Total Return Admin 401 29 92 114 106 53 7

Vanguard Intermediate Term Treasury 354 24 75 85 110 49 11

American Funds EuroPacific R4 352 27 81 118 80 41 5

Fidelity Spartan International Index 341 24 85 103 87 37 5

Davis New Venture Y 308 22 90 84 76 30 6

Vanguard Money Market 306 9 50 73 99 63 12

Vanguard Small Cap Index 302 27 83 80 75 30 7

Vanguard Mid Cap Index 301 27 75 85 81 25 8

DFA Emerging Markets Value I 296 25 77 82 77 31 4

Vanguard PRIMECAP 294 26 74 75 80 33 6

Guaranteed Pooled Fund 276 3 25 50 115 68 15

Royce Value Plus Instl 274 21 67 81 76 24 5

Perkins Mid Cap Value Inv 260 27 67 64 70 26 6

Munder Mid Cap Core Growth A 255 21 72 65 64 29 4

AIM Real Estate Instl 247 24 63 62 69 24 5

Black Rock International Opportunity A 245 23 61 68 68 20 5

MainStay High Yield Bond I 242 23 55 64 68 25 7

59

Plan Demographics (2 of 2)

Fund Total per Fund Age 20-29 Age 30-39 Age 40-49 Age 50-59 Age 60-69 Age > 70

Allianz NFJ Small Cap Value Instl 212 20 55 53 58 22 4

American Funds New Perspective R4 211 21 55 49 58 24 4

Mutual Discovery Z 207 21 52 51 61 18 4

T. Rowe Price Retirement 2015 205 4 24 41 88 46 2

Lord Abbett Small Cap Value A 203 22 51 48 55 22 5

TIAA-CREF Growth & Income Instl 194 20 51 48 50 20 5

TIAA-CREF Mid Cap Value Instl 192 19 49 47 52 20 5








T. Rowe Price Retirement Income 105 2 17 38 20 15 13




60

PortfolioXPress Models

Models 30+ Years To Retirement

20 Years To Retirement

10 Years To Retirement At Retirement 10 Years Into

Retirement

Federated US Treasury Cash 0% 0% 0% 1% 1%

Vanguard PRIME Money Market 0% 0% 0% 1% 1%

Guaranteed Pool 0% 0% 3% 6% 9%

PIMCO Total Return Admin 2% 9% 17% 23% 28%

Vanguard Int Term Treasury 1% 4% 8% 11% 13%

MainStay HY Corporate Bond I 2% 4% 5% 6% 8%

Eaton Vance Large Cap Value A 16% 13% 12% 9% 8%

Davis NY Venture Y 4% 4% 3% 3% 2%

Fidelity Spartan US Equity Index 4% 4% 3% 3% 2%

TIAA-CREF Growth & Income Instl 4% 5% 3% 4% 2%

Fidelity Contrafund 8% 6% 5% 4% 3%

Vanguard PRIMECAP 8% 6% 6% 4% 4%

Perkins Mid Cap Value Inv 2% 1% 1% 1% 0%

TIAA-CREF Mid Cap Value Instl 2% 2% 2% 1% 1%

Vanguard Mid Cap Index 3% 3% 2% 1% 1%

Munder Mid Cap Core Growth 4% 4% 3% 3% 2%

Allianz NFJ Small Cap Value Instl 3% 3% 2% 2% 1%

Lord Abbett Small Cap Value A 2% 2% 1% 1% 1%

Vanguard Small Cap Index 2% 2% 2% 1% 1%

Royce Value Plus Instl 4% 3% 2% 2% 1%

AIM Real Estate Inst 3% 3% 2% 1% 1%

Amer Funds EuroPac Growth R4 3% 3% 2% 1% 1%

Amer Funds New Perspective R4 3% 3% 2% 1% 1%

Fidelity Spartan Intl Index 4% 3% 3% 2% 2%

Mutual Discovery Z 4% 3% 3% 2% 2%

BlackRock International Opp A 6% 5% 4% 3% 2%

DFA Emerging Markets 6% 5% 4% 3% 2%

100% 100% 100% 100% 100%

Model Weighted Expense Ratio 0.72 0.69 0.65 0.62 0.60

Fixe

d/B

onds

Larg

e C

ap E

quity

Mid

/Sm

all C

ap E

quity

Fore

ign/

Wor

ld E

quity

Prudential Plan - Portfolio Summary

March 31, 2009

Section 4

62


Fund Name Asset Class 3 Month YTD 1 Year 3 Year 5 Year 10 Year

Medley Money Market Money Market 5.01% 0.02 0.02 1.26 3.24 2.67 2.69 1.00 N/A3 Month T-Bill 0.05 0.05 0.99 3.39 3.17 3.24Cat: Money Market 0.09 0.09 1.33 3.38 2.87 2.90Prudential Guaranteed Interest Stable Value 65.31% 0.96 0.96 4.00 4.02 4.06 4.75 0.49 N/ACat: Stable Value 0.73 0.73 3.70 4.14 4.05 4.66Medley Government Income Intermediate Government 1.49% 1.67 1.67 3.48 4.62 2.98 4.65 1.22 UnderperformBarclays Intermediate Government Bond -0.08 -0.08 5.99 7.62 4.82 5.76Cat: Intermediate Government Bond 1.37 1.37 4.00 5.42 3.72 4.87Medley Diversified Bond Intermediate Bond 3.52% 1.06 1.06 -4.56 1.88 1.95 3.92 1.20 UnderperformBarclays Aggregate Bond 0.12 0.12 3.13 5.78 4.13 5.70Cat: Intermediate Term Bond 0.08 0.08 -4.94 1.34 1.36 3.92Medley Conservative Balanced Conservative Allocation 1.47% -5.53 -5.53 -22.35 -5.81 -1.66 0.02 1.33 UnderperformMedley Flexible Managed 0.53% -7.21 -7.21 -26.09 -7.54 -1.99 -0.50 1.38 UnderperformCat: Conservative Allocation -3.27 -3.27 -18.92 -4.14 -0.52 1.48Medley Stock Index Large Cap Blend 2.59% -11.19 -11.19 -38.47 -13.84 -5.69 -3.92 1.13 N/AS&P 500 Index -11.01 -11.01 -38.09 -13.06 -4.76 -3.00Cat: Large Blend -10.01 -10.01 -38.13 -13.61 -4.92 -2.24Medley Capital Growth Large Cap Growth 7.13% -0.22 -0.22 -36.14 -13.60 -2.70 -0.56 1.00 PerformMedley Equity 12.00% -5.41 -5.41 -34.89 -12.11 -3.47 -1.50 1.22 PerformRussell 1000 Growth -4.12 -4.12 -34.28 -11.28 -4.38 -5.26Cat: Large Growth -4.58 -4.58 -35.94 -12.69 -4.54 -3.55Medley Global Global 0.97% -16.07 -16.07 -47.00 -16.72 -5.54 -2.97 1.57 UnderperformMSCI WORLD -11.92 -11.92 -42.58 -13.77 -3.50 -2.24Cat: World Stock -9.35 -9.35 -41.70 -13.38 -3.06 0.29


(%) of Plan

Annualized Return Evaluation Methodology

Expense Ratio

63



Medley Government Income Intermediate Government 1.49% 58.46 59.00 54.30 53.98Barclays Intermediate GovernmentMedley Diversified Bond Intermediate Bond 3.52% 51.71 52.58 45.56 43.07Barclays Aggregate BondMedley Conservative Balanced Conservative Allocation 1.47% 59.51 58.04 47.64 47.91Medely Flexible Managed 0.53% 57.96 53.26 43.05 42.63Cat: Conservative AllocationMedley Capital Growth Large Cap Growth 7.13% 31.87 36.68 36.12 28.58Medley Equity Account 12.00% 39.34 38.91 36.02 34.89Russell 1000 GrowthMedley Global Global 0.97% 72.41 65.29 59.89 57.40MSCI World

PLAN WEIGHTED SCORE: 42.67 43.76 40.04 36.56

*Fund weightings are remeasured by assigning a proportionate weighting to each fund included in the Evaluation Methodology Score.


0%

25%

50%

100%



Out

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64

Medley Government IncomeRanking vs. Peers - Intermediate Government BondIntermediate Government Bond Universe = 423 Funds 3/31/2009






Style Consistency to Benchmark - Barcalys Intermediate Government 40.00%R2 60.00%Avg Credit Quality 20.00%


Total Average Ranking 58.46%STATUS UNDERPERFORM


Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

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erfo

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65

Medley Diversified BondRanking vs. Peers - Intermediate BondIntermediate Bond Universe = 1211 Funds 3/31/2009






Style Consistency to Benchmark - Barclays US Aggregate Bond Index 40.00%R2 60.00%Avg Credit Quality 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

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perfo

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66

Medley Conservative BalancedRanking vs. Peers - Conservative AllocationConservative Allocation Universe = 188 Funds 3/31/2009






Style Consistency to Benchmark - Conservative Allocation Category NAR2 NAReturn Style NAHolding Style NA




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

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67

Medley Flexible ManagedRanking vs. Peers - Conservative AllocationConservative Allocation Universe = 188 Funds 3/31/2009






Style Consistency to Benchmark - Conservative Allocation Category NAR2 NAReturn Style NAHolding Style NA




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

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68

Medley Capital GrowthRanking vs. Peers - Large Cap GrowthLarge Cap Growth Universe = 1902 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

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perfo

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69

Medley EquityRanking vs. Peers - Large Cap GrowthLarge Cap Growth Universe = 1902 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

rm

70

Medley GlobalRanking vs. Peers - World StockWorld Stock Universe = 519 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

rm

71

Range of Investments

Lower risk/lower potential reward Higher risk/higher potential reward

BALANCEDCAPITAL

PRESERVATIONINCOME HYBRID VALUE BLEND GROWTH

LARGE BLEND- Medley Stock Index

LARGE GROWTH- Medley Capital Growth- Medley Equity

FO

REI

GN WORLD STOCK

- Medley Global

EQUITYFIXED INCOME

DO

MES

TIC

MONEY MARKET- Medley Money Market

STABLE VALUE- Prudential GIA

INTERMEDIATE GOVERNMENT- Medley Govt Income

INTERMEDIATE BOND- Medley Diversified Bond

CONSERVATIVE ALLOCATION- Medley Conservative Balanced- Medley Flexible Managed

72


omes

tic E

quity

Fore

ign

Equi

ty

Manager Style



-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Value - Growth



Sm Value Sm Growth

Russell Style IndicesMedley Stock IndexMedley Captial GrowthMedley Equity Account

Manager Style



-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Europe - Asia

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity IndicesMedley Global Account

Manager Style



-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Value - Growth



Sm Value Sm Growth

Russell Style IndicesMedley Stock IndexMedley Captial GrowthMedley Equity Account

Manager Style



-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Europe - Asia

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity IndicesMedley Global Account

73



Fund Name Category (Active) Index (Passive) Weight

Medley Money Market Money Market 3 Month T-Bill 5.01%Prudential GIA Stable Value Cat: Stable Value 65.31%Medley Government Income Intermediate Government Barclays Int Govt 1.49%Medley Diversified Bond Intermediate Bond Barclays Aggregate 3.52%Medley Conservative Balanced Conservative Allocation Cat: Conservative Alloc 1.47%Medley Flexible Managed Conservative Allocation Cat: Conservative Alloc 0.53%Medley Stock Index Large Cap Blend S&P 500 Index 2.59%Medley Capital Growth Large Cap Growth Russell 1000 Growth 7.13%Medley Equity Account Large Cap Growth Russell 1000 Growth 12.00%Medley Global World Stock MSCI World 0.97%


Pepperdine Prudential 403(b) Plan -0.44% -7.11% -0.06% 2.05% 3.09% 4.54 -0.06 -0.76 0.72Custom Benchmark - Index (Passive) -0.77% -5.67% 0.48% 2.02% 2.42% N/A N/A N/A N/A

Custom Benchmark - Category (Active) -0.69% -7.41% -0.01% 1.92% 2.72% 4.46 -0.01 -0.76 0.67*

Annualized Returns


-1%

0%

1%

1%

2%

2%

3%

3 Year 5 Year

Pepperdine Prudential 403(b) PlanCustom Benchmark - Index (Passive)Custom Benchmark - Category (Active)

Prudential Plan - Asset Allocation

March 31, 2009

Section 5

75

Asset Allocation by Fund

Fund % of Assets Assets ($) Evaluation Methodology

Prudential Guaranteed Interest 65.31% 2,305,499$ N/A

Medley Equity 12.00% 423,589$ Perform

Medley Capital Growth 7.13% 251,576$ Perform

Medley Money Market 5.01% 176,798$ N/A

Medley Diversified Bond 3.52% 124,084$ Underperform

Medley Stock Index 2.59% 91,294$ N/A

Medley Government Income 1.49% 52,663$ Underperform

Medley Conservative Balanced 1.47% 51,725$ Underperform

Medley Global 0.97% 34,196$ Underperform

Medley Flexible Managed 0.53% 18,545$ Underperform

Total 100.00% 3,529,970$

76


70.32%

5.01% 2.00%

19.13%

2.59%0.97%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Fixed Bond Conservative Large Cap International

Large Cap Blend Large Cap Growth

77

Asset Allocation Quarterly Comparison ($)

Fund Q2-2008 Q3-2008 Q4-2008 Q1-2009

Prudential Guaranteed Interest 2,879,393$ 2,617,143$ 2,612,484$ 2,305,499$

Medley Equity 679,515$ 592,981$ 450,757$ 423,589$

Medley Capital Growth 504,104$ 415,168$ 312,751$ 251,576$

Medley Money Market 231,820$ 238,029$ 246,522$ 176,798$

Medley Diversified Bond 180,807$ 182,963$ 127,377$ 124,084$

Medley Stock Index 151,240$ 138,412$ 108,505$ 91,294$

Medley Government Income 50,780$ 50,117$ 51,504$ 52,663$

Medley Conservative Balanced 89,795$ 86,242$ 78,552$ 51,725$

Medley Global 85,496$ 75,027$ 44,871$ 34,196$

Medley Flexible Managed 48,660$ 47,218$ 43,305$ 18,545$

4,901,610$ 4,443,301$ 4,076,628$ 3,529,970$

78

Asset Allocation Quarterly Comparison (%)

58.7

4%

13.8

6%

10.2

8%

4.73

%

3.69

%

3.09

%

1.04

%

1.83

%

1.74

%

0.99

%

58.9

0%

13.3

5%

9.34

%

5.36

%

4.12

%

3.12

%

1.13

%

1.94

%

1.69

%

1.06

%

64.0

8%

11.0

6%

7.67

%

6.05

%

3.12

%

2.66

%

1.26

%

1.93

%

1.10

%

1.06

%

65.3

1%

12.0

0%

7.13

%

5.01

%

3.52

%

2.59

%

1.49

%

1.47

%

0.97

%

0.53

%

0%

10%

20%

30%

40%

50%

60%

70%Pr

uden

tial G

uara

ntee

dIn

tere

st

Med

ley

Equi

ty

Med

ley

Cap

ital G

row

th

Med

ley

Mon

ey M

arke

t

Med

ley

Div

ersi

fied

Bond

Med

ley

Stoc

k In

dex

Med

ley

Gov

ernm

ent

Inco

me

Med

ley

Cons

erva

tive

Bala

nced

Med

ley

Glo

bal

Med

ley

Flex

ible

Man

aged

Q2-2008Q3-2008Q4-2008Q1-2009

79

Growth of Plan Assets

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Plan Assets $4,810,807 $4,901,610 $4,443,301 $4,076,628 $3,529,970 Mar-08 June-08 Sept-08 Dec-08 Mar-09

TIAA-CREF Plan - Portfolio Summary

March 31, 2009

Section 6

81


Fund Name Asset Class 3 Month YTD 1 Year 3 Year 5 Year 10 Year

CREF Money Market Money Market 9.13% 0.10 0.10 1.65 3.70 3.17 3.24 0.54 N/A3 Month T-Bill 0.05 0.05 0.99 3.39 3.17 3.24Cat: Money Market 0.09 0.09 1.33 3.38 2.87 2.90TIAA Traditional (GRA, RA) Stable Value 48.61% 1.00 1.00 5.21 5.23 4.97 5.64 0.45 N/ATIAA Traditional (GSRA, SRA) 7.91% 0.73 0.73 4.22 4.36 4.01 4.82 0.45 N/ACat: Stable Value 0.73 0.73 3.70 4.14 4.05 4.66CREF Inflation Linked Bond Inflation Protected Bond 2.42% 4.17 4.17 -2.76 5.19 3.69 6.87 0.56 PerformBarclays U.S. TIPS 5.52 5.52 -2.04 5.72 4.15 7.32Cat: Inflation Protected Bond 4.01 4.01 -4.82 3.96 3.17 5.62CREF Bond Market Intermediate Bond 3.04% 0.47 0.47 0.22 4.16 3.12 5.14 0.58 OutperformBarclays Aggregate Bond 0.12 0.12 3.13 5.78 4.13 5.70Cat: Intermediate Term Bond 0.08 0.08 -4.94 1.34 1.36 3.92CREF Social Choice Hybrid 2.41% -6.36 -6.36 -24.86 -6.95 -1.63 0.59 0.59 Perform40% Barclays Agg Bond / 60% S&P 500 Index -6.46 -6.46 -23.36 -5.59 -1.03 0.73Cat: Moderate Allocation -5.88 -5.88 -27.92 -8.28 -2.26 0.48CREF Stock Large Cap Blend 19.65% -10.59 -10.59 -40.33 -13.71 -4.14 -2.09 0.62 PerformS&P 500 Index -11.01 -11.01 -38.09 -13.06 -4.76 -3.00Cat: Large Blend -10.01 -10.01 -38.13 -13.61 -4.92 -2.24CREF Equity Index 1.56% -10.87 -10.87 -38.35 -13.88 -4.95 -2.57 0.56 N/ARussell 3000 Index -10.80 -10.80 -38.20 -13.55 -4.59 -2.25Cat: Large Blend -10.01 -10.01 -38.13 -13.61 -4.92 -2.24CREF Growth Large Cap Growth 2.57% -3.97 -3.97 -34.88 -11.53 -4.63 -5.75 0.63 UnderperformRussell 1000 Growth -4.12 -4.12 -34.28 -11.28 -4.38 -5.26Cat: Large Growth -4.58 -4.58 -35.94 -12.69 -4.54 -3.55CREF Global Equities Global 2.00% -11.18 -11.18 -43.14 -14.35 -4.11 -2.42 0.66 UnderperformMSCI WORLD -11.92 -11.92 -42.58 -13.77 -3.50 -2.24Cat: World Stock -9.35 -9.35 -41.70 -13.38 -3.06 0.29TIAA Real Estate Specialty - Real Estate 0.71% -8.36 -8.36 -21.88 -0.37 5.13 6.20 0.84 N/AWilshire REIT Index -33.92 -33.92 -60.66 -27.00 -9.44 3.71Cat: Specialty - Real Estate -29.54 -29.54 -58.44 -26.11 -9.73 3.38


(%) of Plan

Annualized Return Evaluation Methodology

Expense Ratio

82



CREF Inflation Linked Bond Inflation Protected Bond 2.42% 28.64 26.31 25.70 31.53Barclays U.S. TipsCREF Bond Market Intermediate Bond 3.04% 23.60 23.22 24.67 25.70Barclays Aggregate BondCREF Social Choice Moderate Allocation 2.41% 43.69 43.08 41.25 43.0340% Barclays Agg Bond/60% S&P 500 IndexCREF Stock Large Cap Blend 19.65% 30.95 31.09 28.47 25.69S&P 500 IndexCREF Growth Large Cap Growth 2.57% 50.19 53.36 52.59 52.16Russell 1000 GrowthCREF Global Equities Global 2.00% 61.40 60.44 57.21 57.76MSCI World

PLAN WEIGHTED SCORE: 34.47 34.91 33.07 32.56

*Fund weightings are remeasured by assigning a proportionate weighting to each fund included in the Evaluation Methodology Score.


0%

25%

50%

100%



Out

perfo

rmP

erfo

rmU

nder

perfo

rm

83

CREF Inflation Linked BondRanking vs. Peers - Inflation Protected BondInflation Protected Bond Universe = 145 Funds 3/31/2009






Style Consistency to Benchmark - Barclays US TIPS Index 20.00%R2 20.00%Avg Credit Quality 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

rm

84

CREF Bond MarketRanking vs. Peers - Intermediate BondIntermediate Bond Universe = 1211 Funds 3/31/2009






Style Consistency to Benchmark - Barclays US Aggregate Bond Index 20.00%R2 20.00%Avg Credit Quality 20.00%




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

rm

85

CREF Social ChoiceRanking vs. Peers - Moderate AllocationModerate Allocation Universe = 697 Funds 3/31/2009






Style Consistency to Benchmark - Moderate Allocation Category NAR2 NAReturn Style NAHolding Style NA




Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

rm

86

CREF StockRanking vs. Peers - Large Cap BlendLarge Cap Blend Universe = 1830 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

rm

87

CREF GrowthRanking vs. Peers - Large Cap GrowthLarge Cap Growth Universe = 1902 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

rm

88

CREF Global EquitiesRanking vs. Peers - World StockWorld Stock Universe = 519 Funds 3/31/2009










Performance Ranking

Ratio Statistics

Style Consistency

Fund Expense

0%

25%

50%

100%




Out

perfo

rmP

erfo

rmU

nder

perfo

rm

89

Range of Investments

Lower risk/lower potential reward Higher risk/higher potential reward

BALANCEDCAPITAL

PRESERVATION INCOME HYBRID VALUE BLEND GROWTH

LARGE BLEND- CREF Stock- CREF Equity Index

LARGE GROWTH- CREF Growth

SP

ECI

ALT

Y REAL ESTATE- TIAA Real Estate

FO

REI

GN WORLD STOCK

- CREF Global Equities

EQUITYFIXED INCOME

DO

MES

TIC

MONEY MARKET- CREF Money Market- TIAA Traditional

INFLATION PROTECTED BOND- CREF Inflation Linked Bond

INTERMEDIATE BOND- CREF Bond Market

MODERATE ALLOCATION- CREF Social Choice

90


omes

tic E

quity

Fore

ign

Equi

ty

Manager Style



-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Value - Growth



Sm Value Sm Growth

Russell Style IndicesCREF StockCREF Equity IndexCREF Growth

Manager Style



-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Europe - Asia

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity IndicesCREF Global Equities

Manager Style



-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Value - Growth



Sm Value Sm Growth

Russell Style IndicesCREF StockCREF Equity IndexCREF Growth

Manager Style



-2

-1

0

1

2

Sm

all -

Lar

ge

-2 -1 0 1 2

Europe - Asia

Europe Lg

Europe Sm

AsiaPac Lg

AsiaPac Sm

S&P Int'l Equity IndicesCREF Global Equities

91



Fund Name Category (Active) Index (Passive) Weight

CREF Money Market Money Market 3 Month T-Bill 9.13%TIAA Traditional (GRA, RA) Stable Value Cat: Stable Value 48.61%TIAA Traditional (GSRA, SRA) Stable Value Cat: Stable Value 7.91%CREF Inflation Linked Bond Inflation Protected Bond Barclays U.S. TIPS 2.42%CREF Bond Market Intermediate Term Bond Barclays Aggregate Bond 3.04%CREF Social Choice Moderate Allocation 40%Barclays Agg/60%S&P500 2.41%CREF Stock Large Cap Blend S&P 500 Index 19.65%CREF Equity Index Large Cap Blend Russell 3000 Index 1.56%CREF Growth Large Cap Growth Russell 1000 Growth 2.57%CREF Global Equities Global Stock MSCI World 2.00%TIAA Real Estate Specialty - Real Estate Wilshire REIT 0.71%

-2%

-1%

0%

1%

2%

3%

3 Year 5 Year

Pepperdine TIAA-CREF 403(b) PlanCustom Benchmark - Index (Passive)Custom Benchmark - Category (Active)


Pepperdine TIAA-CREF 403(b) Plan -2.01% -9.64% -0.14% 2.31% 3.38% 5.29 -0.14 -0.66 0.51Custom Benchmark - Index (Passive) -2.38% -8.48% -0.62% 1.57% 2.49% N/A N/A N/A N/A

Custom Benchmark - Category (Active) -2.16% -10.41% -1.05% 1.47% 2.61% 5.30 -1.05 -0.83 0.68*

Annualized Returns


TIAA-CREF Plan - Asset Allocation

March 31, 2009

Section 7

93

Asset Allocation by Fund

Fund % of Assets Assets ($) Evaluation Methodology

TIAA Traditional (GRA, RA) 48.61% 64,986,908$ N/A

CREF Stock 19.65% 26,273,848$ Perform

CREF Money Market 9.13% 12,206,243$ N/A

TIAA Traditional (GSRA, SRA) 7.91% 10,580,711$ N/A

CREF Bond Market 3.04% 4,058,794$ Outperform

CREF Growth 2.57% 3,430,220$ Underperform

CREF Inflation-linked Bond 2.42% 3,229,041$ Perform

CREF Social Choice 2.41% 3,228,543$ Perform

CREF Global Equities 2.00% 2,679,243$ Underperform

CREF Equity Index 1.56% 2,081,418$ N/A

TIAA Real Estate 0.71% 943,778$ N/A

Total 100.00% 133,698,746$

94


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Fixed Bond Balanced Large Cap International Specialty

Large Cap Blend Large Cap Growth

95

Asset Allocation Quarterly Comparison ($)

Fund Q2-2008 Q3-2008 Q4-2008 Q1-2009

TIAA Traditional 70,001,861$ 74,537,560$ 75,518,132$ 75,567,619$

CREF Stock 50,911,892$ 45,588,519$ 34,906,400$ 26,273,848$

CREF Money Market 11,372,778$ 12,330,375$ 13,284,795$ 12,206,243$

CREF Bond Market 4,245,861$ 4,454,703$ 4,597,185$ 4,058,794$

CREF Growth 5,951,990$ 5,574,794$ 4,253,171$ 3,430,220$

CREF Inflation-linked Bond 2,630,762$ 3,069,076$ 3,189,917$ 3,229,041$

CREF Social Choice 4,947,146$ 4,543,480$ 3,932,871$ 3,228,543$

CREF Global Equities 5,785,328$ 5,139,016$ 4,062,490$ 2,679,243$

CREF Equity Index 4,006,399$ 3,844,316$ 2,942,082$ 2,081,418$

TIAA Real Estate 1,405,950$ 1,814,808$ 1,580,215$ 943,778$

Total 161,259,967$ 160,896,646$ 148,267,259$ 133,698,746$

96

Asset Allocation Quarterly Comparison (%)

43.4

1%

31.5

7%

7.05

%

2.63

%

3.69

%

3.59

%

3.07

%

1.63

%

2.48

%

0.87

%

46.3

3%

28.3

3%

7.66

%

2.77

%

3.46

%

3.19

%

2.82

%

1.91

%

2.39

%

1.13

%

50.9

3%

23.5

4%

8.96

%

3.10

%

2.87

%

2.74

%

2.65

%

2.15

%

1.98

%

1.07

%

56.5

2%

19.6

5%

9.13

%

3.04

%

2.57

%

2.00

%

2.41

%

2.42

%

1.56

%

0.71

%

0%

10%

20%

30%

40%

50%

60%

TIA

A Tr

aditi

onal

CR

EF S

tock

CR

EF M

oney

Mar

ket

CRE

F Bo

nd M

arke

t

CR

EF G

rowt

h

CR

EF G

loba

l Equ

ities

CRE

F So

cial

Cho

ice

CREF

Infla

tion-

linke

dB

ond

CR

EF E

quity

Inde

x

TIAA

Rea

l Est

ate

Q2-2008Q3-2008Q4-2008Q1-2009

97

Growth of Plan Assets

$10,000,000

$30,000,000

$50,000,000

$70,000,000

$90,000,000

$110,000,000

$130,000,000

$150,000,000

$170,000,000

$190,000,000

Plan Assets $163,060,699 $161,259,967 $160,896,646 $148,267,259 $133,698,746 Mar-08 June-08 Sept-08 Dec-08 Mar-09

Appendix

99

Evaluation Methodology Changes

Effective 9/30/2007 – Change to Foreign Large Cap Equity Universe

The evaluation methodology for foreign large cap equity funds has been changed to broaden the universe to include value, blend and growth funds. The rationale for this change was based on the following criteria:

• Return-based style analysis illustrates that foreign large cap equity funds do not display strong style consistency quarter over quarter

• The portfolio characteristics (P/E, regional exposure, market caps) are highly correlated across the value, blend and growth categories

• Foreign equity fund mandates (prospectus objectives and guidelines) generally allow managers greater flexibility to invest in companies with various style versus their domestic counterparts

• Foreign funds can invest across regions and countries whose market valuations are affected by individual currency and interest rates that are inherent to those areas, therefore, classifying holdings in traditional value and growth categories may not accurately reflect the manager’s stock selection style. For example, a high P/E growth company (based upon domestic measures) in Japan may be classified as a value stock simply because the Japanese market is undervalued compared to other foreign markets, thereby undervaluing the individual companies.

100

Glossary of Terms3-Month Treasury BillThree-month T-bills are government-backed, short-term investments considered to be risk-free and as good as cash because the maturity is only three months.

Constant Maturity Treasury Indices (CMT)The 3 Year Constant Maturity Treasury yield is derived by the Treasury from the daily yield curve. The daily yield curve relates the yield on a security to its time to maturity and is based on the closing market bid yields on actively traded Treasury securities. These market yields are calculated from composites of quotations obtained by the Federal Reserve Bank of New York.

Down Capture RatioThe Down Capture Ratio calculates the percentage of return of an index a fund will capture during down market cycles.

Expense RatioThe percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees, and all other asset-based costs incurred by the fund, except brokerage costs. Fund expenses are reflected in the fund’s NAV. Sales charges are not included in the expense ratio.

Growth StocksInvestors employing a growth investment strategy buy stocks of companies with a recent history of increasing earnings, in anticipation that earnings momentum will continue. Growth stocks are often characterized by high valuation ratios (e.g., price-to-earnings ratios). See also: value stocks.

Information RatioSimilar to the Sharpe Ratio, the Information Ratio is a risk-adjusted performance measurement, taking the excess return over the fund’s appropriate index and dividing it by the standard deviation. The Information Ratio measures the consistency with which a manager beats a benchmark.

Formula: (Rx – Ri) / σe

Rx = Fund’s 5 year annualized return (calculated on a monthly basis)Ri = Benchmark index 5 year annualized return

σe = √ ∑ (Excess return – Benchmark Index) 2

Lehman Brothers Bond IndicesThe Lehman Brothers Bond Indices include fixed rate debt issue rated investment grade or higher by Moody’s, S&P, or Fitch, in that order. All issues have at least one year to maturity and an outstanding par value of at least $100 million for US Government issues and $50 million for all others. All returns are market value weighted inclusive of accrued interest.

MSCI Country IndicesMorgan Stanley Capital International Inc. (MSCI) maintains a set of indices commonly used by institutional investors as benchmarks for international stock markets. The most commonly cited index is the Europe, Australasia, Far East Index (EAFE), which covers developing markets within the indicated regions. The MSCI EAFE is typically used as a benchmark for broadly diversified “international” or “foreign” stock funds and accounts. The MSCI World Index covers all developed markets in the world including the United States, and is typically used as a benchmark for broadly diversified “global” or “world” stock funds and accounts. MSCI maintains many specialized indices covering other developed regions, emerging markets, and specific countries.

Mutual FundA type of investment company that offers for sale or has outstanding securities which it has issued and which are redeemable on demand by the fund at current net asset value. All owners in the fund share in the gains or losses of the fund.

Net Asset Value (NAV)Usually used in connection with investment companies to mean net asset value per share. An investment company computes its assets daily, or even twice daily, by totaling the market value of all securities owned. All liabilities are deducted, and the balance is divided by the number of sharesoutstanding. The resulting figure is the net asset value per share. The net asset value of a mutual fund (open-end investment company) is the bid and redemption price.

Russell 1000 Value IndexMarket-capitalization weighted index of those firms in the Russell 1000 with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the invest-able US equity market.

R-squaredR-squared is a measure of what percentage of a fund’s return can be attributed to movements in the benchmark. An R-squared of 100 indicates that all movements of a fund can be explained by its benchmark index.

101

Glossary of Terms

Russell 1000 Growth IndexMarket-capitalization weighted index of those firms in the Russell 1000 with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 includes the largest 1000 firms in the Russell 3000, which represents approximately 98% of the invest-able US equity market.

Russell Mid Cap Value IndexMarket-weighted total return index that measures the performance of companies within the Russell 2000 having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 includes the 2000 firms in the Russell 3000 with the smallest market capitalizations. The Russell 3000 Index represents approximately 98% of the invest-able US equity market.

Russell Mid Cap Growth IndexMarket-weighted total return index that measures the performance of companies within the Russell 2000 having higher price-to-book ratios and higher forecasted growth values. The Russell 2000 includes firms 201 through 1000, based on market capitalization, from the Russell 3000. The Russell 3000 Index represents approximately 98% of the invest-able US equity market.

Russell 2000 Value IndexMarket-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the investable US equity market.

Russell 2000 Growth IndexMarket-weighted total return index that measures the performance of companies within the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the investable US equity market.

S&P 500 IndexThe S&P 500 Index consists of widely held common stocks, consisting of four broad sectors (industrials, utilities, financial, and transportation). It is a market-value weighted index (stock price times shares outstanding), with each stock affecting the index in proportion to its market value. This index, calculated by Standard & Poor’s, is a total return index with dividends reinvested.

Sharpe RatioA direct measure of reward-to-risk. Defined as:

Formula: (Rx - Rf) / σx

Rx = Average annual rate of return of X Rf = Best available rate of return of a “risk-free” security (3 month T-bill)

σx = √ ∑ (Excess return – 3 month T-bill) 2

Sharpe ratio measures the efficiency in the amount of risk taken as compared to the reward received for taking such risk.

Standard DeviationA statistical measurement of dispersion about an average, which, for a mutual fund, depicts how widely the returns varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given fund. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility.

Total ReturnsReturns for periods longer than one year are expressed as “annualized returns.” This is equivalent to the compound rate of return which, over a certain period of time, would produce a fund’s total return over that same period.

Up Capture RatioThe Up Capture Ratio calculates the percentage return of an index a fund will capture during up market cycles.

Value StocksInvestors employing a value investment strategy buy stocks of companies they believe are under-priced based on their fundamental ability to generate earnings, in anticipation that the price performance of the stock will reverse. Value stocks are often characterized by low valuation ratios (e.g., price-to-earnings ratios). See also: growth stocks.

Wilshire 4500Measures the performance of all US common equity securities excluding the stocks in the S&P 500. Wilshire indices are reported as total returns with dividends reinvested.

102

Retirement Plan Limits

ITEM IRS CODE 2009 2008 2007 2006 2005

Defined Contribution Annual Limit 1 415 (c)(1)(A) 49,000$ 46,000$ 45,000$ 44,000$ 42,000$

Defined Benefit Annual Limit 1 415 (b)(1)(A) 195,000$ 185,000$ 180,000$ 175,000$ 170,000$

Maximum Compensation Limit 2 401(a)(17) 245,000$ 230,000$ 225,000$ 220,000$ 210,000$

401(k) & 403(b) Employee Deferral Limit 3 402(g)(1) 16,500$ 15,500$ 15,500$ 15,000$ 14,000$

Catch-Up Deferral Limit 4 414(v)(2)(B)(i) 5,500$ 5,000$ 5,000$ 5,000$ 4,000$

Highly Compensated Employee (HCE) Compensation Level 5 414(q)(1)(B) 110,000$ 105,000$ 100,000$ 100,000$ 95,000$

Maximum SIMPLE Plan Deferral Limit 1 408(p)(2)(E) 11,500$ 10,500$ 10,500$ 10,000$ 10,000$

Social Security Tax Wage Base 106,800$ 102,000$ 97,500$ 94,200$ 90,000$

1 Limits are applied for the calendar year.2 Based on year in which plan year begins. All compensation from a single employer (including all members of a contro lled group) must be aggregated for purposes of this limit.3 Employee deferrals to 401(k) and 403(b) plans must be aggregated for purposes of this limit. Limits are applied during the calendar year.4 Available to employees age 50 and older during the calendar year. 5 For the 2008 plan year, an employee who earned $100,000 in 2007 is an HCE. For the 2009 plan year, an employee who earns $105,000 in 2008 is an HCE.

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WARRANTIES

This report was prepared by Benefit Funding Services Group using data compiled from various sources. Benefit Funding Services Group does not warrant the accuracy of data provided by other sources, but does make reasonable efforts to obtain and utilize only reliable information.

Past investment performance does not guarantee future results.

The material in this report is for Plan Sponsor use only and should not be reproduced without written permission by Benefit Funding Services Group.

DISCLOSURES

Returns stated in this report are net of fees unless otherwise noted.

Sharpe Ratio and Standard Deviation data are provided for a 3-year period prior to the reporting date, unless otherwise noted.

Calculations for returns-based style analysis charts are done by MPI Stylus.

Evaluation methodology calculations are provided by MPI Stylus and Morningstar, Inc.

Universe information is provided by Morningstar, Inc.

Fund details and portfolio characteristics are provided by Morningstar, Inc. with the most recent data available from the investment companies.

Investment advisory services offered through Investment Advisor Representatives of Benefit Funding Services Group.

Benefit Funding Services Group2040 Main Street, Suite #150, Irvine, CA 92614 Phone 949.955.2552 Fax 949.955.2553

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All Vendor Summary - Pepperdine University › hr › content › benefits › ...The U.S. yield curve has steepened along with the UK and Eurozone. The 10 Year Treasury rose from