Exceeding Your Expectationsestrada.cune.edu/staffweb/Curt.Sherman/Investment... · and U.S. Treasuries. U.S. TIPS rallied on the news, but still remain down significantly year-to-date

Concordia University, Nebraska & Concordia Foundation, Inc.September 30, 2013

Exceeding Your Expectations

500 West Madison Street, Suite 1700 | Chicago, IL 60661 | 312.853.1000

Quarterly Considerations

1

Plan Sponsors

Non-Profit Organizations

The Wealth Office™

Legal Briefing International Paper settled a lawsuit alleging poor fiduciary oversight of their Plans. In addition to a $30 million payment, the company is also required tomonitor its Plans and rebid recordkeeping contracts.

Close to Home The industry’s largest recordkeeper is on the defense. Current and former employees of Fidelity Investments have filed a class action lawsuit alleging that thecompany’s decision to choose only Fidelity funds for the plan represented “self dealing” and a conflict of interest.

Right Direction Corporate pension funded ratio jumped to 91% during September, a level last observed in 2008 according to Milliman. Robust investment gains improvedfund status by $32 billion for the 100 largest defined benefit plans. A rise in interest rates could push funded status to 95% by 2014.

Money Talks Assets are flowing away from active managers after underperforming in 2012. Worldwide index assets increased more than a trillion dollars to $7.3 trillion in the yearended June 30th, an 18.4% increase, according to Pension and Investments.

Fossil Fuel Fossil fuel holdings divestment has gained traction and media attention. Harvard recently announced that they will not divest citing that doing so is “unrelated to theendowment’s financial strength and its ability to advance our academic calls.” Please let us know if you would like more information on the topic.

Make It a Priority Health and education are the top priorities of the country’s largest foundations accounting for nearly half of all grant dollars. More than a third of grant dollarsare specifically intended to benefit the economically disadvantaged, according to the Foundation Center.

Don’t Be Surprised The new 3.8% investment tax on dividends, interest and capital gains is in effect in 2013 for joint filers making over $250,000 of income ($200,000 /single). The 4th quarter offers the last planning opportunity for investors to control how much income they take home in 2013 and the impact on your portfolio. If the new taxapplies to you, reach out to The Wealth OfficeTM to discuss a few planning ideas.

Munis on the Mend With interest rates rising over the summer and five consistent months of outflows in tax free, municipal bonds, the asset class has experienced recentpressure. However, this distress has created significant opportunity for investors seeking higher quality bonds with attractive yields. To determine how this asset class may playa role in your portfolio, please contact The Wealth OfficeTM to discuss.

Year End Checklist Time Whether its annual exclusion gifting, required minimum distributions from retirement accounts, or navigating tax loss harvesting and capital gains, wecan help you with your financial planning ‘checklist’. The Wealth OfficeTM can help make sure all your year end items are addressed.

Diversification Isn’t Dead For those who missed our recently held WebEx, we examined how broad diversification has performed recently and over longer periods oftime. While certain asset classes have not helped portfolios recently, over the long run broad diversification has outperformed concentrated U.S. Stock and Bondportfolios. Diversification will not work in every period, but it remains the only ‘free lunch’ in investing. Feel free to contact us for a link to the playback or to discuss any of theissues mentioned during the presentation.

2

Market Snapshot

2

0.7% 0.9% 0.6%2.3% 1.0%

4.4%

-0.4%

5.2%

10.2%11.6%

5.9%

-3.1%

2.8% 2.1%2.3%

-0.7%-6.7%

0.0%-1.9%

3.7%

0.8%

-2.4%

-7.6%

19.8%

27.7%

16.6%

-4.1%

3.2%6.0%

-8.6%

5.6%

21.2%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Barclays U.S. TIPS

Barclays Muni Bond

5 Year

Barclays Aggregate

Barclays U.S. Corp High Yield

Barclays Global Agg

ex. US (Hedged)

Barclays Global Agg

ex. US (Unhedged)

JPMorgan GBI-EM Global

Diversified (Unhedged)

S&P 500 Russell 2000

MSCI EAFE MSCI EM NAREIT All Equity

S&P Developed

World Property

DJ UBS Commodity

Index

HFRI Weighted

Composite

Alerian MLP Index

Source: Bloomberg

Fixed Income Equities Alternatives

Key: Left Bars: Recent Quarter ReturnRight Bars: YTD Return

• The Fed has softened language around the direction of its quantitative easing program after what has been dubbed the “taper tantrum” in reaction to Federal Reserve Chairman Ben Bernanke’s signal that the Fed may slow quantitative easing. Subsequently, bond returns were largely positive for the quarter.

• Momentum in equities for the quarter has shifted to developed countries outside of the U.S. and the emerging markets. Signs that developed Europe’s protracted recession ended this summer boosted returns while higher commodity prices helped many emerging equity markets.

• Real assets had the tailwind of a generally weaker dollar and geopolitical risks in Syria to push prices upward. Precious metals in particular were strong performers for the quarter.

3

U.S. Economic Update

• U.S. GDP increased at an annual quarter-over-quarter rate of 2.5% for the prior quarter.

• YoY inflation remains below the Fed’s 2% stated goal. Inflation figures remain in focus as the Fed debates whether economic growth is strong enough to taper bond purchases.

• Unemployment fell to 7.3% in August, its lowest level since December 2008, but driven primarily by a shrinking labor force as the civilian participation rate fell to a 35-year low of 63.2%.

3

1.6%

-6%

-4%

-2%

0%

2%

4%

6%

Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13

U.S. Real GDP Growth (Seasonally Adjusted - YoY % Change)

Real GDP Growth % YoY

Sources: Bloomberg & Bureau of Economic Analysis

1.8%1.6%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13

U.S. Inflation (YoY % Change)

CPI CPI CoreSources: Bloomberg & The Bureau of Labor Statistics

31-Aug % Chg MoM 30-Sep % Chg MoM7.3% -0.1% 79.7 -2.6%

31-Aug % Chg MoM 31-Aug % Chg MoM96.6 0.7% $11.5T 0.3%

31-Aug % Chg MoM 31-Aug % Chg MoM891K 0.9% $14.2T 0.4%

30-Sep % Chg MoM 31-Aug % Chg MoM56.2 0.9% $427B 0.2%

Consumer Confidence

Retail Sales

Unemployment Rate

Leading Indicators

ISM Manufacturing PMI

U.S. Personal IncomeHousing Starts

Consumer Spending

4

Global Economic Update

• Eurozone GDP increased at an annual quarter-over-quarter rate of 0.3% for the prior quarter, signaling the long running recession may be coming to an end. Germany and France led in growth.

• The central banks of India and Brazil both raised interest rates to combat persistently high inflation amid a sharp depreciation among their respective currencies.

• The Fed, ECB, BOE, and BOJ have dramatically expanded their balance sheets since the onset of the financial crisis as central banks acted aggressively to inject liquidity and promote growth.

4

QE 1 QE 2 QE 3

$7,000

$7,500

$8,000

$8,500

$9,000

$9,500

$10,000

$10,500

$11,000

$11,500

$12,000

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2008 2009 2010 2011 2012 2013

Bill

ions

$

Federal Reserve Balance Sheet and Quantitative Easing (QE)

Federal Reserve's Balance Sheet (LHS) M2 Money Supply (RHS)

Source: U.S. Federal Reserve

5

Global Fixed Income

5

0.1% 0.7% 0.9% 0.6% 1.0%0.2%

1.0%2.1% 2.3%

-0.8%

1.0%

4.4%

-0.4%

-2.0%

-6.7%

0.0%

-1.9%-1.0% -0.6% -0.3%

-8.6%

3.7%

-8.7%

0.8%

-2.4%

-7.6%-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

U.S. Treasuries U.S. TIPS U.S. Muni 5 Year U.S. Aggregate U.S. MBS U.S. ABS U.S. CMBS U.S. Corporates U.S. High Yield U.S. Long Gov / Credit

Global Agg ex. U.S. Hedged

Global Agg ex. U.S. Unhedged

JPMorgan GBI-EM Global Diversified Unhedged

Fixed Income Sector Returns

QTR YTDSources: Bloomberg, Barclays, & JPMorganAll indices are Barclays indices except where noted

• Most bond asset classes rallied after a difficult second quarter following the Fed’s decision to delay tapering of its ongoing purchases of mortgage-backed securities and U.S. Treasuries. U.S. TIPS rallied on the news, but still remain down significantly year-to-date.

• The record $49 billion corporate issuance by Verizon (to purchase Vodafone’s 45% stake in Verizon Wireless) was met with ample demand by investors and significantly bolstered liquidity in the secondary market. The issuance was larger in size than the next three largest deals in history combined.

• Unhedged foreign bonds outperformed partially as a result of most currencies strengthening relative to the U.S. dollar during the quarter.

3.8%

0.9%

6.0%

-1.2%

0.3%

2.0%4.2%

1.9%2.5%

-13.3%

-0.4%-1.9%

1.8%

-3.9%

1.1%

-11.6%

-15%

-10%

-5%

0%

5%

10%

Euro Japanese Yen

British Pound

Mexican Peso

Chinese Yuan

Canadian Dollar

Swiss Franc Australian Dollar

Currency Returns vs. U.S. Dollar

QTR YTDSource: Bloomberg

6

U.S. Fixed Income

6

0%

1%

2%

3%

4%

3 Month 6-Month 2-Year 5-Year 10-Year 30-Year

U.S. Yield Curve

Dec-12 Jun-13 Sep-13Source: Bloomberg

2.2%

2.6%

0.4%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13

10-Year Breakeven Inflation Rate

10-Year Breakeven Inflation10-Year Treasury Yield10-Year TIPS Yield

Source: Bloomberg

• The U.S. yield curve was little changed from a quarter ago despite significant volatility stemming from the positive reaction to the Fed delaying its tapering to concerns about a potential government shutdown and the looming U.S. debt ceiling deadline on October 17.

• Investment grade and high yield corporate spreads were fairly range bound during the quarter, and credit spreads on financial corporate bonds are now tighter than spreads on industrial bonds for the first time since 2007.

• Market implied inflation of 2.2% ticked up 20 bps during the quarter as nominal yields ticked up and TIPS ticked down modestly.

0.7%1.3%

3.3%

0%

2%

4%

6%

8%

10%

12%

14%

Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13

Credit Spreads Above Treasuries

Agency Spread A Spread BB SpreadSources: Bloomberg & Barclays

7

Global Equity Markets

7

U.S. Equities:

5.7%

13.7% 12.7% 12.1%15.5%

8.0% 6.7%10.4%

5.5%

12.2%

-5.3%

8.4%

13.7%

4.1%

-1.7%

9.0% 9.5%

20.2%

16.7%16.9%

12.4%

20.3%16.6%

24.5%

5.3%

-1.3%

0.1%

-12.8%-10.9%

1.0%

-11.1%

-7.4%

2.2%

-4.9%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

U.S. Europe Germany United Kingdom

France Pacific Japan Pacific (ex. Japan)

EM Asia China India Brazil Russia EM Latin America

Mexico Canada EM EMEA

MSCI Equity Returns by Country / Region

QTR YTDSources: Bloomberg & MSCI

QTR YTD QTR YTD QTR YTD

Larg

eM

idSm

all

20.9

23.0 24.4

9.3

25.4

10.2

20.8

7.6

23.1

20.5

5.9 7.7

12.8

32.5

Value Core Growth

3.9 6.0 8.1

27.7

• Domestic growth stocks were favored heavily over value for the quarter across the capitalization spectrum though all styles added to strong year-to-date performance during the quarter.

• U.S. equities continue to trade near or above all times highs. Only the utilities sector was down for the quarter by 1.1% in the Russell 1000 Index while the materials and producer durables sectors roared ahead with 9.6% and 9.3% gains respectively.

• Thanks to a solid advance in September, the European region ended the quarter with strong gains. Signs that the region’s protracted recession ended over the summer helped propel market gains.

• Momentum shifted positively in emerging markets during the quarter. In particular, Russia and China forged ahead due to higher oil prices and a stabilizing economy, respectively.

8

Equity Sector Returns (Most Recent Quarter)

8

8.2%

1.0%

6.0%

3.2%

7.3%

9.6% 9.3%8.4%

-1.1%

7.7%

13.8%14.7%

5.8%

14.7%

10.8%12.2%

13.9%

2.9%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Consumer Discretionary

Consumer Staples Energy Financial Services Health Care Materials & Processing

Producer Durables Technology Utilities

Domestic Equity Sector Returns

Domestic Large Cap (Russell 1000) Domestic Small Cap (Russell 2000)Sources: Bloomberg & Russell

13.1%

6.8%

10.8%

13.0%

5.9%

14.3%

10.1%

15.0%

17.8%

9.8%9.1%

-0.2%

10.8%

3.4%2.3%

7.2%

9.0% 9.1%

3.1%1.3%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Consumer Discretionary

Consumer Staples Energy Financials Health Care Industrials Information Technology

Materials Telecommunication Services

Utilities

International Equity Sector Returns

International (MSCI EAFE) Emerging Markets (MSCI EM)Sources: Bloomberg & MSCI

9

Real Assets

9

-3.1%-1.3% -1.7%

-6.8%-4.6%

6.2%

-8.1%

-1.9%

3.2%4.4% 4.9%

-3.4%

-0.3%

17.4%

0.6%

-2.1%

-10%

-5%

0%

5%

10%

15%

20%

All Equity Index

Diversified Office Apartment Retail Lodging & Resorts

Health Care Mortgage

Domestic REIT Sector Returns

QTR YTDSources: Bloomberg & NAREIT

• Domestic REITs declined over fears of higher interest rates. Shorter lease sectors such as lodging & resorts outperformed.

• Globally, European and Asian REITs outperformed, led by Japanese REOCs and the United Kingdom.

• Commodities were mixed as record harvest estimates led to corn price weakness while precious metals and petroleum rallied on macro concerns.

• A late quarter advance limited MLPs declines. Midstream MLPs outpaced commodity sensitive MLPs.

2.1% 2.8%

-5.1%

4.3%2.6%

6.5%9.0%

0.9%

-8.6%

0.7%

-12.2% -13.9%

-1.9%

4.1%

-23.3%

-10.6%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

DJ UBS Commodity Composite

Energy Grains Industrial Metals

Livestock Petroleum Precious Metals

Softs

DJ UBS Commodity Returns

QTR YTDSource: Bloomberg

3.2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13

MLP Yield Spreads over 10-Year Treasury

MLP Spread FTSE NAREIT All Equity REIT Spread

A-Rated Corporate Spread BBB-Rated Corporate SpreadSource: Bloomberg

10

Hedge Funds

10

2.1% 2.3%

4.1%3.2%

-1.1%

2.0%

5.6% 5.6%

9.2% 9.0%

-2.1%

5.0%

-4%

-2%

0%

2%

4%

6%

8%

10%

Fund of Funds Composite

Fund Weighted Composite

Equity Hedge Event Driven Macro Relative Value

QTR YTDSources: Bloomberg & Hedge Fund Research

• Hedge Funds outperformed Fund of Funds as the HFRI Fund Weighted Composite Index advanced 2.3% compared to the HFRI Fund of Funds Composite Index gaining 2.1% in the third quarter.

• Equity Hedge and Event Driven produced the strongest returns during the quarter as directional equity strategies continued their year-long trend of outperforming on the back of developed market strength.

• After muted asset flows throughout the first half of 2013, net year-to-date inflows more than doubled in the third quarter across all hedge fund strategies.

11

11

Source: Bloomberg

Financial Markets PerformancePeriods greater than one year are annualized

As of: September 30, 2013

All returns are in U.S. dollar terms (unless where noted)*

Global Fixed Income Markets QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

Citi 3-Month T-Bill 0.0% 0.0% 0.1% 0.1% 0.1% 0.1% 1.2% 1.6%Barclays US TIPS 0.7% -6.7% -6.1% 1.2% 4.0% 5.3% 5.4% 5.2%Barclays Municipal Bond (5 Year) 0.9% 0.0% -0.2% 2.2% 2.7% 4.9% 4.6% 3.8%Barclays US Aggregate 0.6% -1.9% -1.7% 1.7% 2.9% 5.4% 5.1% 4.6%Barclays U.S. Corporate High Yield 2.3% 3.7% 7.1% 13.1% 9.2% 13.5% 8.8% 8.9%Barclays Global Aggregate ex-US Hedged 1.0% 0.8% 2.1% 3.9% 3.1% 4.7% 4.2% 4.3%Barclays Global Aggregate ex-US Unhedged* 4.4% -2.4% -3.4% 0.6% 1.5% 4.8% 5.2% 5.1%Barclays U.S. Long Gov / Credit -0.8% -8.7% -8.3% 0.9% 4.7% 9.1% 6.9% 6.3%JPMorgan GBI-EM Global Diversified Unhedged* -0.4% -7.6% -3.7% 4.1% 1.8% 7.3% 9.2% 10.1%

Global Equity Markets QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

S&P 500 5.2% 19.8% 19.3% 24.6% 16.2% 10.0% 5.6% 7.6%Dow Jones Industrial Average 2.1% 17.6% 15.6% 20.9% 14.9% 9.9% 6.6% 7.7%NASDAQ Composite 11.2% 26.1% 23.0% 26.7% 18.3% 13.8% 8.8% 8.9%Russell 3000 6.3% 21.3% 21.6% 25.8% 16.8% 10.6% 6.1% 8.1%Russell 1000 6.0% 20.8% 20.9% 25.4% 16.6% 10.5% 6.0% 8.0%Russell 1000 Growth 8.1% 20.9% 19.3% 24.1% 16.9% 12.1% 7.6% 7.8%Russell 1000 Value 3.9% 20.5% 22.3% 26.5% 16.2% 8.9% 4.2% 8.0%Russell Mid Cap 7.7% 24.4% 28.0% 28.0% 17.5% 12.9% 7.7% 10.7%Russell Mid Cap Growth 9.3% 25.4% 27.5% 27.1% 17.6% 13.9% 8.3% 10.1%Russell Mid Cap Value 5.9% 23.0% 27.9% 28.5% 17.3% 11.8% 6.8% 10.9%Russell 2000 10.2% 27.7% 30.1% 30.9% 18.3% 11.1% 7.2% 9.6%Russell 2000 Growth 12.8% 32.5% 33.1% 32.1% 20.0% 13.1% 9.0% 9.8%Russell 2000 Value 7.6% 23.1% 27.0% 29.8% 16.6% 9.1% 5.3% 9.2%MSCI ACWI ex. U.S. 10.2% 10.5% 17.0% 16.0% 6.4% 6.7% 3.5% 9.2%MSCI EAFE 11.6% 16.6% 24.3% 19.2% 9.0% 6.9% 2.9% 8.5%MSCI EAFE Growth 10.5% 16.9% 23.7% 19.4% 9.2% 7.2% 3.8% 8.4%MSCI EAFE Value 12.7% 16.3% 24.9% 19.0% 8.6% 6.5% 1.9% 8.5%MSCI EAFE Small Cap 15.6% 22.4% 29.8% 21.1% 11.6% 11.8% 4.5% 10.7%MSCI Emerging Markets 5.9% -4.1% 1.3% 9.0% 0.0% 7.6% 6.3% 13.2%

Alternatives QTR YTD 1YR 2YR 3YR 5YR 7YR 10YR

Consumer Price Index 0.2% 1.0% 1.0% 1.5% 2.3% 1.3% 2.0% 2.4%FTSE NAREIT Equity REIT -3.1% 3.2% 5.9% 18.5% 12.3% 5.7% 3.1% 9.5%S&P Developed World Property x U.S. 7.9% 8.2% 17.7% 22.5% 10.9% 10.0% 2.6% 10.7%S&P Developed World Property 2.8% 6.0% 12.4% 20.7% 11.4% 8.2% 2.6% 9.9%DJ UBS Commodity Total Return 2.1% -8.6% -14.3% -4.7% -3.2% -5.3% -2.1% 2.1%HFRI Fund of Funds Composite 2.1% 5.6% 7.0% 4.9% 2.6% 2.0% 1.7% 3.4%HFRI Fund Weighted Composite 2.3% 5.6% 7.1% 6.4% 3.9% 5.0% 4.1% 5.9%Alerian MLP -0.7% 21.2% 17.1% 21.5% 16.5% 22.4% 15.4% 15.6%

12

12

2004 2005 2006 2007 2008 2009 2010 2011 2012 YTDREITs31.6%

Emerging34.5%

REITs35.0%

Emerging39.8%

Aggregate Bond5.2%

Emerging79.0%

MLP35.9%

MLP13.9%

Emerging18.6%

Smal l Growth32.5%

Emerging26.0%

Commodities21.4%

Emerging32.6%

Emerging Debt18.1%

Foreign Bond4.4%

MLP76.4%

Smal l Growth29.1%

TIPS13.6%

REITs18.1%

Smal l Blend27.7%

Emerging Debt23.0%

International14.0%

International26.9%

Commodities16.2%

Cash1.8%

High Yield58.2%

REITs27.9%

REITs8.3%

Smal l Value18.1%

Smal l Va lue23.1%

Smal l Value22.2%

REITs12.2%

MLP26.1%

MLP12.7%

TIPS2.4%

Large Growth37.2%

Smal l Blend26.9%

Aggregate Bond7.8%

Internationa l17.9%

MLP21.2%

Internationa l20.7%

Large Value7.1%

Smal l Va lue23.5%

Large Growth11.8%

Emerging Debt5.2%

Smal l Growth34.5%

Smal l Value24.5%

High Yield5.0%

Large Value17.5%

Large Growth20.9%

Smal l Blend18.3%

MLP6.3%

Large Value22.2%

International11.6%

Balanced24.8%

Internationa l32.5%

Emerging19.2%

Foreign Bond4.4%

Emerging Debt16.8%

Large Value20.5%

MLP16.7%

Emerging Debt6.3%

Smal l Blend18.4%

TIPS11.6%

High Yield26.2%

REITs28.0%

Commodities16.8%

Large Growth2.6%

Smal l Blend16.3%

Large Blend19.8%

Large Value16.5%

Balanced5.8%

Large Blend15.8%

Foreign Bond11.0%

Smal l Value28.9%

Smal l Blend27.2%

Large Growth16.7%

Large Blend2.1%

Large Blend16.0%

International16.6%

Smal l Growth14.3%

Large Growth5.3%

Balanced15.4%

Smal l Growth7.0%

Smal l Blend33.8%

Large Blend26.5%

Emerging Debt15.7%

Balanced1.1%

High Yield15.8%

Balanced13.2%

Balanced12.5%

Large Blend4.9%

Emerging Debt15.2%

Aggregate Bond7.0%

Commodities35.6%

Emerging Debt22.0%

Large Value15.5%

Large Value0.4%

Large Growth15.3%

High Yield3.7%

Foreign Bond12.5%

Smal l Va lue4.7%

Smal l Growth13.3%

Large Blend5.5%

Large Value36.8%

Balanced21.4%

High Yield15.1%

Cash0.1%

Smal l Growth14.6%

REITs3.2%

High Yield11.1%

Smal l Blend4.6%

High Yield11.9%

Balanced4.7%

MLP36.9%

Smal l Value20.6%

Large Blend15.1%

Emerging Debt1.8%

Balanced12.9%

Cash0.0%

Large Blend10.9%

Smal l Growth4.2%

Large Growth9.1%

Cash4.7%

Large Blend37.0%

Large Value19.7%

Balanced13.9%

Smal l Growth2.9%

TIPS7.0%

Aggregate Bond1.9%

Commodities9.1%

Cash3.0%

Foreign Bond8.2%

High Yield1.9%

REITs37.7%

Commodities18.9%

Internationa l8.2%

Smal l Blend4.2%

MLP4.8%

Foreign Bond2.4%

TIPS8.5%

TIPS2.8%

Cash4.8%

Large Value0.2%

Large Growth38.4%

TIPS11.4%

Aggregate Bond6.5%

Smal l Value5.5%

Aggregate Bond4.2%

Emerging4.1%

Large Growth6.3%

High Yield2.7%

Aggregate Bond4.3%

Smal l Blend1.6%

Smal l Growth38.5%

Foreign Bond7.5%

TIPS6.3%

Internationa l11.7%

Foreign Bond4.1%

TIPS6.7%

Aggregate Bond4.3%

Aggregate Bond2.4%

Commodities2.1%

Smal l Va lue9.8%

International43.1%

Aggregate Bond5.9%

Foreign Bond4.9%

Commodities13.3%

Cash0.1%

Emerging Debt7.6%

Cash1.2%

Foreign Bond8.7%

TIPS0.5%

REITs15.7%

Emerging53.2%

Cash0.2%

Cash0.1%

Emerging18.2%

Commodities1.1%

Commodities8.6%

Why Diversify?

13

QE 1 QE 2 QE 3

$7,000

$7,500

$8,000

$8,500

$9,000

$9,500

$10,000

$10,500

$11,000

$11,500

$12,000

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2008 2009 2010 2011 2012 2013

Bill

ions

$

Federal Reserve Balance Sheet and Quantitative Easing (QE)

Federal Reserve's Balance Sheet (LHS) M2 Money Supply (RHS)Source: U.S. Federal Reserve

Third Quarter 2013 Knowledge College

1

With Janet Yellen’s recent nomination to be the next Chair of the Federal Reserve (“The Fed”), we believe it would be prudent to review Fed policies that are currently in place. Due to Yellen’s long tenure with the Federal Reserve and her influence on recent policy as Vice Chair since 2010, it seems likely she would lead the Fed in a similar fashion as her predecessor, Ben Bernanke.

Since the 2008 financial crisis, the Federal Reserve has injected approximately $3.2 trillion of newly printed money into U.S. Treasury and (investment grade) mortgage-backed fixed income securities to stimulate borrowing by suppressing long term real interest rates. As a result of these outright purchases, the Fed’s balance sheet has expanded dramatically.

Recent Federal Reserve Policy and Quantitative Easing

Since 2008, The Fed has initiated three distinct quantitative easing programs, which have been referred to as QE1, QE2 and QE3:

• QE1: On November 25, 2008, the Federal Reserve announced that it would purchase up to $600 billion in agency mortgage-backed securities (MBS) and agency debt. The program was expanded on March 18, 2009 by an additional $750 billion in purchases of agency MBS and agency debt and $300 billion in purchases of Treasury securities. QE1 ended in March 2010.

• QE2: On November 3, 2010, the Federal Reserve announced that it would purchase $600 billion of longer dated Treasuries, at a rate of$75 billion per month. While QE2 ended in June 2011, the Fed announced “Operation Twist” in September 2011 with the intention topurchase $400 billion of bonds with maturities of 6 to 30 years and to sell bonds with maturities less than 3 years, thereby extending the average maturity of the Fed's own portfolio. Further, on June 20, 2012 the Fed announced an extension to Operation Twist by adding an additional $267 billion to the program and extending it throughout 2012.

The chart to the right displays the increase in the Fed’s balance sheet since 2008, as well as a measure of the money supply, M2.

14

Third Quarter 2013 Knowledge College

2

• QE3: On September 13, 2012, the Federal Reserve announced a third round of quantitative easing, which included an open-ended commitmentto purchase $40 billion of agency mortgage-backed securities per month until the labor market improves "substantially." The Fed expanded the program further on December 12, 2012 by continuing to authorize up to $40 billion worth of agency mortgage-backed securities per month and added $45 billion worth of longer-term Treasury securities. QE3 has no explicit end date and will continue until labor markets near full employment or inflation remains subdued.

So what do these policies mean for your investment strategy? While there are competing views on what mid and long term impacts these unprecedented Fed actions will have, there are a number of reasonable conclusions one could draw:

• These are undeniably impactful sums of capital: The Fed owned approximately $922 billion worth of assets on its balance sheet prior to the financial crisis. Today that number sits closer to $3.7 trillion. That’s over a 300% increase in a 5.75 year period, which equates to a compound annual growth rate of 27.6% per year. There will be future economic implications of this policy simply due to the sheermagnitude of the dollars changing hands.

• Each QE program has been significant in size: During QE1, QE2 and QE3, the Fed’s balance sheet expanded by approximately $1.7 trillion, $600 billion, and $925 billion, respectively. The increases of magnitude are approximately 181%, 26%, and 33% of Fed assets at the beginning of each period, respectively.

• The Fed has financed these purchases by printing more money: The level of M2 (A category of the money supply that includes all physical money such as coins and currency, as well as checking accounts, time-related deposits, savings deposits, and non-institutional money-market funds) has increased by approximately $3.4 trillion since the beginning of 2008, while the Fed’s balance sheet hasexpanded by $2.8 trillion during the same period. While not a perfect relationship, there is no denying both are related phenomena.

• Despite the economic theory that a large expansion in the money supply will yield higher inflation, it has not (yet) occurred: TheConsumer Price Index (which includes the more volatile components of food and energy) has expanded at a rate of 1.9% per year sincethe beginning of 2008, which is hardly a torrid pace. However, future inflation is likely to be higher and may be significantly so.

While we do not believe we (or anyone) can effectively time inflection points for interest rates (or accelerating inflation), we do believe that most client portfolios should have meaningful allocations to real asset classes such as real estate, commodities, master limited partnerships (or MLPs) and other real asset classes. While not technically a real asset, we believe treasury inflation-protected securities (or TIPS) can also add significant diversification benefits within fixed income portfolios. This portion of each client’s portfolio should perform well relative to financial assets such as stocks and bonds when inflation unexpectedly increases, which is a more likely scenario now given the magnitude and persistence of the Fed’s recent and unprecedented actions.

15

ACCOUNT RECONCILIATION

BENCHMARK COMPOSITION

TRAILING PERFORMANCE SUMMARY

CALENDAR YEAR PERFORMANCE SUMMARY

CurrentQuarter YTD 1

Year3

Years5

YearsSince

InceptionInception

DateHistorical Account Composite 12/31/2003

Beginning Market Value 38,697,922 36,308,947 36,333,218 30,222,921 23,249,824 16,533,579Net Contributions -1,000,025 624,785 19,085 657,743 1,276,720 3,441,596Gain/Loss 1,018,470 1,782,636 2,364,064 7,835,704 14,189,823 18,741,192Ending Market Value 38,716,367 38,716,367 38,716,367 38,716,367 38,716,367 38,716,367


Year3

Years5

Years10

YearsSince

InceptionInception

DateHistorical Account Composite 2.61 4.76 6.44 7.94 9.69 7.55 7.32 12/31/2003Focused Index Benchmark 2.72 5.06 6.30 N/A N/A N/A 6.61 12/01/2010Broad Index Benchmark 4.36 9.20 10.29 9.44 7.89 7.20 6.74 12/31/2003

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003Historical Account Composite 13.54 -1.56 18.01 31.50 -26.08 8.07 12.52 9.11 8.88 19.07Focused Index Benchmark 10.94 -1.58 N/A N/A N/A N/A N/A N/A N/A N/ABroad Index Benchmark 12.12 0.70 12.62 24.89 -29.09 7.98 14.67 7.25 11.64 25.23

Allocation Mandate Weight (%)Mar-2013Barclays US Universal Index 33.00Russell 3000 Index 33.00MSCI AC World ex USA 14.00DSA Hedge Fund Index 20.00

Concordia University-NebraskaEndowment

September 30, 2013

16

Fixe

d In

com

e

Equi

ty

Rea

l Ass

ets

Hed

ge F

unds

Cas

h

TIPS

US

Bond

For.

Dev

. Bon

d

HY

Bond

EM B

ond

LC U

S Eq

uity

MC

US

Equi

ty

SC U

S Eq

uity

Int'l

Equ

ity

EM E

quity

Rea

l Est

ate

Com

mod

. Fut

.

MLP

s

HFs

Por

tfolio

Ret

urn

Ris

k (

)

Dis

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rom

Tar

get

Reb

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Req

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d

Target 33% 26% 21% 20% 0% 3% 0% 7% 10% 9% 4% 9% 0% 3% 8% 6% 7% 9% 5% 20% 0% 7.01% 10.94% N.A. N.A.9/30/2013 32% 26% 20% 22% 0% 3% 0% 7% 10% 9% 4% 9% 0% 3% 8% 6% 6% 8% 6% 22% 0% 7.06% 10.84% 0.11% No6/30/2013 32% 26% 20% 21% 0% 3% 0% 7% 10% 9% 4% 10% 0% 3% 8% 6% 7% 8% 6% 21% 0% 7.08% 10.89% 0.09%3/31/2013 33% 26% 21% 20% 0% 3% 0% 7% 10% 9% 4% 9% 0% 3% 8% 6% 7% 9% 5% 20% 0% 7.03% 10.91% 0.04%12/31/2012 32% 30% 19% 20% 0% 6% 0% 7% 7% 7% 5% 12% 3% 1% 9% 4% 6% 8% 5% 20% 0% 7.01% 10.95% 0.01%9/30/2012 32% 29% 20% 20% 0% 6% 0% 7% 7% 7% 5% 12% 3% 1% 9% 4% 6% 9% 5% 20% 0% 6.97% 10.85% 0.10%6/30/2012 33% 28% 19% 20% 0% 6% 0% 7% 7% 7% 5% 12% 3% 1% 9% 4% 6% 8% 5% 20% 0% 6.95% 10.77% 0.18%3/31/2012 34% 37% 19% 10% 0% 11% 0% 8% 6% 5% 5% 15% 3% 2% 12% 5% 6% 8% 5% 10% 0% 6.85% 11.51% 0.59%12/31/2011 28% 41% 21% 10% 0% 12% 0% 8% 5% 4% 0% 14% 2% 5% 12% 8% 6% 10% 6% 10% 0% 7.14% 12.01% 1.08%9/30/2011 33% 36% 21% 10% 2% 13% 0% 8% 5% 4% 0% 13% 2% 5% 10% 7% 6% 10% 5% 10% 0% 6.77% 11.17% 0.32%6/30/2011 28% 41% 22% 10% 0% 12% 0% 8% 5% 4% 0% 14% 2% 5% 12% 8% 6% 10% 5% 10% 0% 7.14% 12.00% 1.07%3/31/2011 27% 41% 22% 10% 0% 11% 0% 8% 5% 4% 0% 13% 2% 6% 12% 8% 6% 11% 6% 10% 0% 7.16% 12.00% 1.07%12/31/2010 28% 40% 22% 10% 0% 11% 0% 8% 5% 4% 0% 13% 2% 5% 12% 8% 6% 11% 5% 10% 0% 7.14% 11.97% 1.04%

Concordia University, Nebraska & Concordia Foundation, Inc.Portfolio Engineer™

The Target Allocation Changed Effective 3/1/2013.

Fixed Income Equity Real Assets Hedge FundsBroad Allocation 2013-2022 Assumptions

6.0%

6.2%

6.4%

6.6%

6.8%

7.0%

7.2%

7.4%

7.6%

10.0% 10.5% 11.0% 11.5% 12.0% 12.5%

Expe

cted

Ret

urn

Expected Risk (Standard Deviation)

Target Allocation

9/30/2013

6/30/2013

Past Allocations

Constraint Radius 0.45%

17

September 30, 2013 June 30, 2013

June 30, 2013September 30, 2013Market Value

($)Allocation

(%)Target

(%)TIPS 1,084,854 2.8 3.0Broad Domestic Fixed 2,650,610 6.8 7.0High Yield Fixed 3,523,511 9.1 9.0International Fixed Hedged 3,824,247 9.9 10.0Emerging Markets Debt 1,409,792 3.6 4.0Large Cap 3,690,638 9.5 9.0Small Cap 1,268,915 3.3 3.0International Equity 3,090,141 8.0 8.0Emerging Markets 2,115,233 5.5 6.0Real Estate Domestic 2,741,396 7.1 7.0Commodities 2,905,039 7.5 9.0MLP 2,207,528 5.7 5.0Hedge Funds 8,185,374 21.2 20.0Cash/Equivalents 645 0.0 0.0Total Fund 38,697,922 100.0 100.0

Market Value($)

Allocation(%)

Target(%)

TIPS 1,094,711 2.8 3.0Broad Domestic Fixed 2,706,854 7.0 7.0High Yield Fixed 3,453,338 8.9 9.0International Fixed Hedged 3,864,777 10.0 10.0Emerging Markets Debt 1,404,775 3.6 4.0Large Cap 3,505,647 9.1 9.0Small Cap 1,298,287 3.4 3.0International Equity 3,228,601 8.3 8.0Emerging Markets 2,169,545 5.6 6.0Real Estate Domestic 2,491,680 6.4 7.0Commodities 3,005,776 7.8 9.0MLP 2,134,780 5.5 5.0Hedge Funds 8,342,913 21.5 20.0Cash/Equivalents 14,683 0.0 0.0Total Fund 38,716,367 100.0 100.0


September 30, 2013

18


Year3

Years5

Years10

YearsSince

InceptionInception

DateHistorical Account Composite 2.61 4.76 6.44 7.94 9.69 7.55 7.32 12/31/2003Broad Index Benchmark 4.36 9.20 10.29 9.44 7.89 7.20 6.74 12/31/2003Focused Index Benchmark 2.72 5.06 6.30 N/A N/A N/A 6.61 12/01/2010


September 30, 2013

19

Up Market Capture

Down Market Capture

Concordia University-NebraskaVersus Focused Index Benchmark

As of September 30, 2013

20

1Year

3Years

5Years

7Years

10Years

Return 6.44 7.94 9.69 6.34 7.55Standard Deviation 5.45 9.37 13.80 12.87 18.07Downside Risk 3.12 5.84 9.03 8.77 11.11

vs. Broad Index BenchmarkAlpha -2.95 -2.19 1.75 1.31 0.86Beta 0.94 1.10 0.99 0.99 1.05Consistency 33.33 44.44 58.33 57.14 51.67Information Ratio -2.06 -0.58 0.66 0.55 0.09M-Squared -3.79 -2.38 1.70 1.28 -1.88R-Squared 0.90 0.95 0.97 0.97 0.43Tracking Error 1.74 2.22 2.53 2.25 13.62Treynor Ratio 0.07 0.07 0.10 0.06 0.07

vs. Focused Index BenchmarkAlpha -0.03 N/A N/A N/A N/ABeta 1.03 N/A N/A N/A N/AConsistency 66.67 N/A N/A N/A N/AInformation Ratio 0.21 N/A N/A N/A N/AM-Squared -0.07 N/A N/A N/A N/AR-Squared 0.99 N/A N/A N/A N/ATracking Error 0.67 N/A N/A N/A N/ATreynor Ratio 0.06 N/A N/A N/A N/A

vs. Citigroup 3 Month T-BillSharpe Ratio 1.16 0.86 0.73 0.45 0.40

Concordia University-NebraskaHistorical Account Composite


Calculation based on monthly periodicity.

21

5 YEARS3 YEARS

10 YEARS7 YEARS


September 30, 2013

22

vs Benchmark3

Years

vs Benchmark5

Years

vs Peer Group3

Years

vs Peer Group5

Years

Alpha3

Years

Alpha5

Years

Consistency5

YearsExpense

RatioFirm/Strategy

Evaluation Status

Vanguard Inflation-Protected Secs Adm Pass

Loomis Sayles Bond Instl Discuss

PIMCO Total Return Instl Pass

JPMorgan High Yield Select Discuss

PIMCO Foreign Bond (USD-Hedged) I Pass

PIMCO Emerging Local Bd Fd Inst Discuss

Dodge & Cox Stock Pass

iShares Core S&P 500 ETF Pass

iShares Russell 1000 Growth Index Pass

DFA US Small Cap Value I Discuss

Conestoga Small Cap Pass

American Funds EuroPacific Gr F-2 Discuss

Aberdeen Emerging Markets Instl Fd Instl Pass

Nuveen Real Estate Secs I Pass

PIMCO Commodity Real Ret Strat Instl N/A N/A N/A N/A

Kayne Anderson MLP Invst Co N/A N/A N/A N/A

Tortoise Energy Infrastructure Corp. N/A N/A N/A N/A

Grosvenor Inst'l Partners, L.P. N/A N/A N/A N/A

Magnitude International N/A N/A N/A N/A N/A

Concordia University-NebraskaManager Evaluation Summary


23

Concordia University-NebraskaManager Evaluation Summary


Outperform BenchmarkUnderperform Benchmark

vs Benchmark

Legend For Overall Criteria

1-50 Percentile51-100 Percentile

vs Peer Group

50% or greaterLower than 50%

Consistency

Lower than category averageHigher than category average

Expense Ratio

Subjective*Subjective*

Firm/StrategyEvaluation

Discuss: Trailed 4 or more categories or recognized within Firm/Strategy Evaluation category

Status

Positive AlphaNegative Alpha

Alpha

* Recognition within Firm/Strategy Evaluation category the result of a FLASH memo issued by DiMeo Schneider Investment Committee based on qualitative factors.

24

Fund &Cat Avg

ExpRatio

Allocation

MarketValue

($)%

Performance(%)

CurrentQuarter YTD Fiscal

YTD1

Year3

Years5

Years10

Years 2012 2011 2010

Feb-2010To

Sep-2013

Jan-2004To

Sep-2013

Total PlanHistorical Account Composite 38,716,367 100.0 2.6 4.8 2.6 6.4 7.9 9.7 7.5 13.5 -1.6 18.0 10.0 7.0Focused Index Benchmark 2.7 5.1 2.7 6.3 N/A N/A N/A 10.9 -1.6 N/A N/A N/ABroad Index Benchmark 4.4 9.2 4.4 10.3 9.4 7.9 7.2 12.1 0.7 12.6 10.1 6.4CPI + 5.0% 1.5 5.8 1.5 6.2 7.5 6.4 7.5 6.8 8.1 6.6 7.2 7.6

TIPSVanguard Inflation-Protected Secs Adm 1,094,711 2.8 0.9 -6.8 0.9 -6.2 3.9 5.1 N/A 6.9 13.3 6.3 4.7 N/A 0.10Barclays U.S. Treasury: U.S. TIPS 0.7 -6.7 0.7 -6.1 4.0 5.3 5.2 7.0 13.6 6.3 4.7 5.2IM U.S. TIPS (MF) Median 0.7 -6.8 0.7 -6.2 3.2 4.7 4.6 6.3 11.9 5.9 4.1 4.7 0.83Vanguard Inflation-Protected Secs Adm Rank 25 50 25 53 9 31 N/A 24 12 29 16 N/A

Broad Domestic FixedLoomis Sayles Bond Instl 1,980,912 5.1 2.5 3.4 2.5 6.5 8.0 11.9 8.5 15.1 3.8 13.6 9.3 8.0 0.63Barclays Aggregate 0.6 -1.9 0.6 -1.7 2.9 5.4 4.6 4.2 7.8 6.5 4.1 4.7IM U.S. Broad Market Core Fixed Income (MF) Median 0.5 -2.1 0.5 -1.6 3.1 6.1 4.3 6.2 6.6 7.3 4.4 4.4 0.92Loomis Sayles Bond Instl Rank 1 1 1 1 1 1 1 1 96 1 1 1

PIMCO Total Return Instl 725,941 1.9 1.2 -1.9 1.2 -0.7 3.8 8.0 6.1 10.4 4.2 8.9 5.3 6.2 0.46Barclays Aggregate 0.6 -1.9 0.6 -1.7 2.9 5.4 4.6 4.2 7.8 6.5 4.1 4.7IM U.S. Broad Market Core Fixed Income (MF) Median 0.5 -2.1 0.5 -1.6 3.1 6.1 4.3 6.2 6.6 7.3 4.4 4.4 0.92PIMCO Total Return Instl Rank 4 36 4 20 19 4 1 2 94 20 16 1

High Yield FixedJPMorgan High Yield Select 3,453,338 8.9 2.0 3.7 2.0 7.0 8.3 11.8 8.5 14.8 2.6 14.7 9.3 8.1 0.86Barclays US Corp: High Yield 2.3 3.7 2.3 7.1 9.2 13.5 8.9 15.8 5.0 15.1 10.3 8.5IM U.S. High Yield Bonds (MF) Median 2.2 3.3 2.2 6.5 8.1 11.0 7.5 14.7 3.3 14.0 9.2 7.1 1.21JPMorgan High Yield Select Rank 65 36 65 39 44 27 12 48 63 36 49 13

International Fixed HedgedPIMCO Foreign Bond (USD-Hedged) I 3,864,777 10.0 1.1 -0.5 1.1 1.4 5.1 9.1 6.1 11.2 6.8 9.2 6.5 6.3 0.50Barclays Global Aggregate Ex USD (Hedged) 1.0 0.8 1.0 2.1 3.1 4.7 4.3 6.5 3.9 3.3 3.7 4.4IM International Fixed Income (MF) Median 2.0 -3.8 2.0 -3.5 1.3 5.0 4.7 6.7 3.0 6.4 3.2 4.3 1.08PIMCO Foreign Bond (USD-Hedged) I Rank 70 9 70 10 2 3 18 17 7 24 5 11



25



Fund &Cat Avg

ExpRatio

Allocation

MarketValue

($)%

Performance(%)


YTD1

Year3

Years5

Years10

Years 2012 2011 2010

Feb-2010To

Sep-2013

Jan-2004To

Sep-2013

Emerging Market DebtPIMCO Emerging Local Bd Fd Inst 1,404,775 3.6 -0.4 -9.2 -0.4 -5.8 1.3 7.8 N/A 15.8 -0.8 15.6 5.3 N/A 0.90JPM GBI-EM Global Diversified -0.4 -7.6 -0.4 -3.7 1.8 7.3 10.1 16.8 -1.8 15.7 5.7 10.0IM Emerging Markets Debt (MF) Median 0.4 -7.1 0.4 -3.7 4.5 9.9 8.5 18.6 5.5 12.8 7.4 8.1 1.26PIMCO Emerging Local Bd Fd Inst Rank 86 95 86 90 95 88 N/A 85 84 13 90 N/A

Large CapDodge & Cox Stock 1,165,981 3.0 6.9 25.7 6.9 29.3 17.8 10.9 8.1 22.0 -4.1 13.5 15.6 6.9 0.52Russell 1000 Value Index 3.9 20.5 3.9 22.3 16.2 8.9 8.0 17.5 0.4 15.5 15.4 6.7IM U.S. Large Cap Value Equity (MF) Median 4.5 20.6 4.5 22.1 14.7 8.5 7.2 15.5 -2.3 12.8 13.5 6.0 1.25Dodge & Cox Stock Rank 6 3 6 3 3 7 18 1 71 40 10 19

iShares S&P 500 Index 1,151,196 3.0 5.2 19.7 5.2 19.3 16.2 10.0 7.5 15.9 2.0 15.0 15.4 6.4 0.07S&P 500 5.2 19.8 5.2 19.3 16.3 10.0 7.6 16.0 2.1 15.1 15.5 6.5IM U.S. Large Cap Core Equity (MF) Median 5.6 19.6 5.6 20.0 14.9 9.1 7.1 15.4 -0.5 13.1 13.8 6.0 1.23iShares S&P 500 Index Rank 64 48 64 60 27 27 34 41 24 22 21 35

iShares Russell 1000 Growth Index 1,188,471 3.1 8.0 20.7 8.0 19.0 16.7 11.9 7.6 15.0 2.5 16.5 16.2 6.8 0.20Russell 1000 Growth Index 8.1 20.9 8.1 19.3 16.9 12.1 7.8 15.3 2.6 16.7 16.4 6.9IM U.S. Large Cap Growth Equity (MF) Median 9.5 20.6 9.5 19.4 15.1 10.2 7.1 14.9 -1.8 15.1 14.7 6.3 1.33iShares Russell 1000 Growth Index Rank 75 50 75 55 22 23 34 49 12 34 21 33

Small CapDFA US Small Cap Value I 678,082 1.8 8.2 27.4 8.2 33.5 19.4 12.3 10.9 21.7 -7.5 30.9 19.8 9.0 0.52Russell 2000 Value Index 7.6 23.1 7.6 27.0 16.6 9.1 9.3 18.1 -5.5 24.5 16.7 7.8IM U.S. Small Cap Value Equity (MF) Median 8.3 25.4 8.3 29.4 17.1 10.8 9.5 16.1 -5.0 25.7 17.3 8.0 1.53DFA US Small Cap Value I Rank 52 30 52 19 11 25 11 9 83 9 5 17

Conestoga Small Cap 620,204 1.6 15.4 34.5 15.4 35.6 21.4 14.3 11.5 11.0 4.6 24.0 21.2 10.3 1.10Russell 2000 Growth Index 12.8 32.5 12.8 33.1 20.0 13.2 9.9 14.6 -2.9 29.1 20.7 8.8IM U.S. Small Cap Growth Equity (MF) Median 12.3 32.6 12.3 31.9 19.8 12.2 9.1 12.3 -3.9 26.8 20.3 7.7 1.55Conestoga Small Cap Rank 21 38 21 22 29 32 3 61 3 68 40 3

26



Fund &Cat Avg

ExpRatio

Allocation

MarketValue

($)%

Performance(%)


YTD1

Year3

Years5

Years10

Years 2012 2011 2010

Feb-2010To

Sep-2013

Jan-2004To

Sep-2013

International EquityAmerican Funds EuroPacific Gr F-2 3,228,601 8.3 9.5 11.8 9.5 18.1 7.0 7.4 N/A 19.5 -13.4 9.7 8.4 N/A 0.59MSCI EAFE Index 11.6 16.6 11.6 24.3 9.0 6.9 8.5 17.9 -11.7 8.2 9.0 7.0IM International Large Cap Core Equity (MF) Median 10.8 14.2 10.8 22.3 8.0 5.7 7.8 18.1 -12.7 7.6 8.3 6.3 1.36American Funds EuroPacific Gr F-2 Rank 85 85 85 87 77 11 N/A 26 65 26 50 N/A

Emerging MarketsAberdeen Emerging Markets Instl Fd Instl 2,169,545 5.6 2.6 -6.5 2.6 0.3 3.6 12.8 N/A 26.2 -11.0 27.6 10.0 N/A 1.10MSCI Emerging Markets Index 5.9 -4.1 5.9 1.3 0.0 7.6 13.2 18.6 -18.2 19.2 4.5 11.6IM Emerging Markets Equity (MF) Median 5.2 -3.8 5.2 2.2 -0.7 6.1 11.9 18.7 -19.5 18.3 3.9 10.2 1.63Aberdeen Emerging Markets Instl Fd Instl Rank 80 78 80 68 14 1 N/A 8 4 7 3 N/A

Real Estate DomesticNuveen Real Estate Secs I 2,491,680 6.4 -2.6 2.3 -2.6 4.9 12.1 7.2 11.2 18.3 7.9 30.6 17.3 10.4 1.03FTSE NAREIT Equity REIT Index -3.1 3.2 -3.1 5.9 12.3 5.7 9.5 18.1 8.3 27.9 17.0 8.7IM Real Estate Sector (MF) Median -2.9 2.0 -2.9 4.2 11.2 5.3 8.9 16.8 7.9 27.5 16.1 8.2 1.41Nuveen Real Estate Secs I Rank 36 37 36 27 15 12 1 24 50 13 12 5

CommoditiesPIMCO Commodity Real Ret Strat Instl 3,005,776 7.8 3.5 -12.8 3.5 -17.9 -0.7 -1.1 4.7 5.3 -7.6 24.1 3.0 3.6 0.74Dow Jones-UBS Commodity Index 2.1 -8.6 2.1 -14.3 -3.2 -5.3 2.1 -1.1 -13.3 16.8 -0.3 1.0

MLPKayne Anderson MLP Invst Co 1,073,863 2.8 -6.3 25.8 -6.3 23.2 19.2 18.3 N/A 6.3 3.5 35.9 20.3 N/A 2.40Alerian MLP Index -0.7 21.2 -0.7 17.0 16.5 22.3 15.7 4.8 13.9 35.9 20.0 14.8

Tortoise Energy Infrastructure Corp. 1,060,916 2.7 0.0 25.7 0.0 19.4 16.5 23.2 N/A 0.2 10.8 31.5 19.0 N/A 1.60Alerian MLP Index -0.7 21.2 -0.7 17.0 16.5 22.3 15.7 4.8 13.9 35.9 20.0 14.8

27



Fund &Cat Avg

ExpRatio

Allocation

MarketValue

($)%

Performance(%)


YTD1

Year3

Years5

Years10

Years 2012 2011 2010

Feb-2010To

Sep-2013

Jan-2004To

Sep-2013

Hedge FundsGrosvenor Inst'l Partners, L.P. 4,327,763 11.2 3.5 10.4 3.5 13.0 5.9 4.6 4.7 8.4 -3.8 6.7 5.6 4.5 1.15HFRI Fund of Funds Composite Index 1.8 5.2 1.8 6.6 2.5 2.0 3.4 4.8 -5.7 5.7 2.7 3.1

Magnitude International * 4,015,150 10.4 0.2 2.7 0.2 4.8 6.0 5.9 6.7 7.6 4.7 6.7 5.8 6.6 1.00HFRI Fund of Funds Composite Index 1.8 5.2 1.8 6.6 2.5 2.0 3.4 4.8 -5.7 5.7 2.7 3.1

Cash/EquivalentsCash & Equivalents 14,683 0.0

*September 2013 Magnitude International market value based on preliminary monthly return estimates provided by Magnitude International

28

FUND INFO

HISTORICAL PERFORMANCE

FUND OBJECTIVE

QUARTERLY COMMENTS - FUND

The fund seeks to provide inflation protection and income consistent with investment in inflation-indexed securities. It primarily invests in inflation-indexed bonds issued by the U.S. government. It may invest in bonds of any maturity, though the fund typically maintains a dollar-weightedmaturity of seven to 10 years. Up to 20% of the assets may be invested in non-inflation-indexed securities, including investment grade corporatedebt and U.S. government and agency bonds. At a minimum, all bonds purchased will be rated “investment grade.”

Product Name : Vanguard Infl-Prot;Adm (VAIPX)Fund Family : Vanguard Group IncTicker : VAIPXPeer Group : IM U.S. TIPS (MF)Benchmark : Barclays Cap US Treasury: US

TIPSFund Inception : 06/10/2005Portfolio Manager : Gemma Wright-CaspariusTotal Assets : $12,198 MillionTotal Assets Date : 08/31/2013Gross Expense : 0.10%Net Expense : 0.10%Turnover : 33%

The fund marginally outperformed the benchmark in the third quarter of 2013.The fund’s duration of 8.1 years means that it is particularly sensitive to changes in interest rates.During the quarter, TIPS outperformed nominal Treasuries because real yields declined slightly compared with similar duration nominalTreasuries. As a result, the 5-year break-even rate widened from 1.81% to 1.95%, while the 10-year break-even rate increased from 2.03% to2.20%.

J. Rondini, Senior Investment Analyst, DiMeo Schneider & Associates, L.L.C. 3Q13


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Vanguard Infl-Protected Secs Adm 0.91 -6.80 -6.22 3.87 5.05 N/A 6.90 13.29 6.31 10.96 -2.78 11.69 0.52 N/A N/A N/ABarclays Cap US Treasury: US TIPS 0.70 -6.74 -6.10 4.02 5.31 5.24 6.98 13.56 6.31 11.41 -2.35 11.63 0.49 2.84 8.46 8.39IM U.S. TIPS (MF) Median 0.67 -6.80 -6.18 3.21 4.69 4.61 6.35 11.93 5.87 10.26 -2.56 10.62 -0.05 2.06 7.58 7.61Vanguard Infl-Protected Secs Adm Rank 25 50 53 9 31 N/A 24 12 29 32 56 7 17 N/A N/A N/A

Vanguard Infl-Protected Secs Adm

September 30, 2013

29

PEER GROUP ANALYSIS 3 YEAR ROLLING PEER GROUP PERCENTILE RANKING

RELATIVE PERFORMANCE TO INDEXRISK AND RETURN (10/01/08-09/30/13)

CurrentQuarter

1Year

3Years

5Years

Vanguard Infl-Protected Secs Adm 0.9 (25) -6.2 (53) 3.9 (9) 5.1 (31)Barclays Cap US Treasury: US TIPS 0.7 (46) -6.1 (45) 4.0 (3) 5.3 (20)

5th Percentile 1.5 0.2 3.9 6.31st Quartile 0.9 -4.4 3.6 5.2Median 0.7 -6.2 3.2 4.73rd Quartile 0.5 -6.7 2.6 3.895th Percentile 0.3 -9.1 1.7 2.5


September 30, 2013

30

PORTFOLIO CHARACTERISTICSRISK CHARACTERISTICS

SECTOR EXPOSURE (%)CREDIT QUALITY DISTRIBUTION (%)

1Year

3Years

5Years

10Years

Return -6.22 3.87 5.05 N/AStandard Deviation 6.30 5.69 7.43 N/A

Barclays Cap US Treasury: US TIPSReturn -6.10 4.02 5.31 5.24Standard Deviation 6.01 5.59 7.34 6.44

vs. Barclays Cap US Treasury: US TIPSTracking Error 0.61 0.49 0.67 N/AAlpha 0.16 -0.19 -0.28 N/ABeta 1.04 1.01 1.01 N/AR-Squared 0.99 0.99 0.99 N/AConsistency 50.00 47.22 46.67 N/A

vs. 90 Day U.S. Treasury BillSharpe Ratio -1.00 0.68 0.68 N/A

Portfolio BenchmarkEffective Duration 8.1 7.4Avg. Maturity 8.8 8.5Yield To Worst 4.3 2.2


September 30, 2013

31

FUND INFO


FUND OBJECTIVE


This fund is managed to take full advantage of the 35% limit on below investment-grade bonds, which tends to generate a higher risk/rewardprofile. In addition, management is willing to take on added interest rate risk through obtaining longer-duration bonds in order to gain higher yields.To ease some of this interest rate risk, the fund is structured with counter cyclical elements. In doing so, it will utilize convertible bonds, municipalbonds, preferred stocks and foreign corporate and government bonds, in addition to the domestic corporate bonds which make up the majority of the fund.

Product Name : Loomis Sayles:Bond;Inst (LSBDX)

Fund Family : Loomis Sayles & Company LPTicker : LSBDXPeer Group : IM U.S. Broad Market Core

Fixed Income (MF)Benchmark : Barclays AggregateFund Inception : 05/16/1991Portfolio Manager : Fuss/Stokes/EaganTotal Assets : $12,982 MillionTotal Assets Date : 09/30/2013Gross Expense : 0.63%Net Expense : 0.63%Turnover : 20% Manager performance commentary not available.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Loomis Sayles Bond Instl 2.48 3.35 6.51 8.02 11.87 8.46 15.13 3.76 13.58 37.19 -21.82 8.53 11.29 4.28 11.30 29.18Barclays Aggregate 0.57 -1.89 -1.68 2.86 5.41 4.60 4.21 7.84 6.54 5.93 5.24 6.97 4.34 2.43 4.34 4.11IM U.S. Broad Market Core Fixed Income (MF) Median 0.54 -2.10 -1.59 3.08 6.11 4.31 6.16 6.63 7.26 12.44 -3.45 5.30 3.93 1.80 3.95 4.26Loomis Sayles Bond Instl Rank 1 1 1 1 1 1 1 96 1 1 97 1 1 1 1 1

Loomis Sayles Bond Instl

September 30, 2013

32



CurrentQuarter

1Year

3Years

5Years

Loomis Sayles Bond Instl 2.5 (1) 6.5 (1) 8.0 (1) 11.9 (1)Barclays Aggregate 0.6 (46) -1.7 (55) 2.9 (61) 5.4 (70)



September 30, 2013

33



1Year

3Years

5Years

10Years

Return 6.51 8.02 11.87 8.46Standard Deviation 5.71 6.84 11.08 9.35

Barclays AggregateReturn -1.68 2.86 5.41 4.60Standard Deviation 2.89 2.78 3.63 3.37

vs. Barclays AggregateTracking Error 4.08 6.77 10.02 8.38Alpha 9.26 6.53 4.81 2.90Beta 1.45 0.57 1.35 1.26R-Squared 0.54 0.05 0.19 0.21Consistency 75.00 61.11 65.00 64.17

vs. 90 Day U.S. Treasury BillSharpe Ratio 1.12 1.15 1.06 0.74



September 30, 2013

34

FUND INFO


FUND OBJECTIVE


PIMCO uses strategies intended to capitalize on the firm’s top-down analysis and their bottom-up fundamental research. PIMCO’s top downanalysis combines their outlook on the global economy and interest rates with a shorter term scenario analysis on factors such as interest ratevolatility, yield curve movements and credit trends. Once the larger themes are established, PIMCO’s portfolio management team focuses onselecting high-quality fixed income securities through the use of proprietary fundamental and quantitative research. In addition to traditionalstrategies such as sector rotation and yield curve management, PIMCO uses derivatives to implement portfolio strategy. The fund may use futurescontracts to replicate physical bonds or to create a short position in a given sector or along the yield curve. The fund is managed in a go anywherestyle which allows PIMCO to invest in securities not found in the index including, but not limited to, international developed country bonds,convertible bonds, high yield bonds and emerging market debt.

Product Name : PIMCO:Tot Rtn;Inst (PTTRX)Fund Family : PIMCOTicker : PTTRXPeer Group : IM U.S. Broad Market Core

Fixed Income (MF)Benchmark : Barclays AggregateFund Inception : 05/11/1987Portfolio Manager : William H. GrossTotal Assets : $157,106 MillionTotal Assets Date : 09/30/2013Gross Expense : 0.46%Net Expense : 0.46%Turnover : 380%

The fund outperformed in the third quarter primarily as a result of the fund’s curve positioning, as well holdings in longer-term TIPS, mortgages,credit, and emerging markets.The fund reduced its duration significantly by approximately 1.5 years by selling nominal treasuries to be underweight duration relative to thebenchmark in order to capitalize on an expected steepening of the yield curve.The fund rotated out of agency mortgage securities, which the firm views as fully-valued due to the Fed’s continued quantitative easing effortspurchasing approximately 65% of total market issuance.The portfolio remains underweight traditional investment-grade credit, but the fund’s tactical positions in “Build America Bonds” are viewed asmore attractive substitutes to credit that are trading at more attractive yield spreads above treasuries than are other traditional investment-gradecredits.The fund added much of the sale of nominal treasuries to money market futures that mature in late 2015 and early 2016 and are in place tobenefit from the Fed delaying fed funds rate hikes longer than the market expects.Positioning remains overweight the 0-5 year portion of the nominal yield curve, and overweight 10-20 year TIPS while limiting corporateexposure, especially in financials which have continued to perform well and be less attractive on a relative value basis.

A. Novara, Research Analyst, DiMeo Schneider & Associates, L.L.C. 3Q13


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

PIMCO Total Return Instl 1.17 -1.88 -0.74 3.77 7.97 6.12 10.35 4.16 8.86 13.87 4.82 9.08 3.99 2.88 5.14 5.57Barclays Aggregate 0.57 -1.89 -1.68 2.86 5.41 4.60 4.21 7.84 6.54 5.93 5.24 6.97 4.34 2.43 4.34 4.11IM U.S. Broad Market Core Fixed Income (MF) Median 0.54 -2.10 -1.59 3.08 6.11 4.31 6.16 6.63 7.26 12.44 -3.45 5.30 3.93 1.80 3.95 4.26PIMCO Total Return Instl Rank 4 36 20 19 4 1 2 94 20 42 14 1 45 3 10 24

PIMCO Total Return Instl

September 30, 2013

35



CurrentQuarter

1Year

3Years

5Years

PIMCO Total Return Instl 1.2 (4) -0.7 (20) 3.8 (19) 8.0 (4)Barclays Aggregate 0.6 (46) -1.7 (55) 2.9 (61) 5.4 (70)



September 30, 2013

36



1Year

3Years

5Years

10Years

Return -0.74 3.77 7.97 6.12Standard Deviation 4.30 3.94 4.13 3.98

Barclays AggregateReturn -1.68 2.86 5.41 4.60Standard Deviation 2.89 2.78 3.63 3.37

vs. Barclays AggregateTracking Error 1.73 2.75 2.66 2.18Alpha 1.72 0.88 3.13 1.53Beta 1.42 1.02 0.88 0.99R-Squared 0.92 0.51 0.60 0.70Consistency 75.00 69.44 75.00 68.33

vs. 90 Day U.S. Treasury BillSharpe Ratio -0.17 0.94 1.85 1.09



September 30, 2013

37

FUND INFO


FUND OBJECTIVE


The fund utilizes a bottom-up, fundamental, value-oriented approach to analyze the issuer's business prospectus, management, capitalrequirements, capital structure, enterprise value, and security structure and covenants. Credit analysts focusing solely on high yield havesignificant influence on buy/sell decisions, industry weighting, and risk profile within an industry. The analysts keep a performance rating on eachindustry they follow, which determines relative weightings in the portfolio. Relative positions within each industry in terms of credit quality alsoresult from analyst ratings. Management may shift from weaker to stronger credits and from cyclical to non-cyclical sectors if they believe theeconomic environment will weaken and vice versa if they believe the economy will strengthen.

Product Name : JPMorgan:High Yield;Sel (OHYFX)

Fund Family : JPMorgan FundsTicker : OHYFXPeer Group : IM U.S. High Yield Bonds (MF)Benchmark : Barclays US Corp: High YieldFund Inception : 11/13/1998Portfolio Manager : Morgan/Shanahan/GibsonTotal Assets : $7,208 MillionTotal Assets Date : 09/30/2013Gross Expense : 1.09%Net Expense : 0.86%Turnover : 65%

During the quarter, security selection within the energy, finance and transport sectors detracted from results.On the positive side, security selection within the capital goods, communications and utilities sectors aided results.From a sector perspective, underweighting consumer cyclicals was also positive.

J. Rondini, Senior Investment Analyst, DiMeo Schneider & Associates, L.L.C. 3Q13


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

JPMorgan High Yield Select 1.99 3.71 6.97 8.26 11.80 8.46 14.81 2.65 14.67 48.45 -22.54 2.18 12.80 3.04 11.31 26.10Barclays US Corp: High Yield 2.28 3.73 7.14 9.19 13.53 8.86 15.81 4.98 15.12 58.21 -26.16 1.87 11.86 2.74 11.14 28.96IM U.S. High Yield Bonds (MF) Median 2.17 3.26 6.54 8.12 11.00 7.46 14.72 3.31 14.03 47.44 -25.00 1.84 9.98 2.58 9.87 24.75JPMorgan High Yield Select Rank 65 36 39 44 27 12 48 63 36 46 30 41 6 34 19 38

JPMorgan High Yield Select

September 30, 2013

38



CurrentQuarter

1Year

3Years

5Years

JPMorgan High Yield Select 2.0 (65) 7.0 (39) 8.3 (44) 11.8 (27)Barclays US Corp: High Yield 2.3 (43) 7.1 (36) 9.2 (16) 13.5 (4)

5th Percentile 3.3 10.4 10.1 13.21st Quartile 2.5 7.9 8.9 11.9Median 2.2 6.5 8.1 11.03rd Quartile 1.9 5.5 7.4 10.295th Percentile 1.3 3.4 5.9 8.5


September 30, 2013

39



1Year

3Years

5Years

10Years


Barclays US Corp: High YieldReturn 7.14 9.19 13.53 8.86Standard Deviation 4.28 6.54 13.17 10.40

vs. Barclays US Corp: High YieldTracking Error 0.34 0.84 3.37 2.64Alpha 0.11 -0.62 0.84 1.19Beta 0.96 0.97 0.80 0.81R-Squared 0.99 0.98 0.96 0.96Consistency 25.00 30.56 35.00 45.83




September 30, 2013

40

FUND INFO


FUND OBJECTIVE


The fund takes an all-encompassing approach toward international fixed-income investing. Top-down work begins with a 3-5 year outlook for theglobal economy and interest rates followed by using a country-bond allocation model to help determine which countries have the best risk adjustedyield. The bottom-up strategy focuses on credit research, stressing fundamental and in depth analysis of all potential holdings.

Product Name : PIMCO:For Bd (DH);Inst (PFORX)

Fund Family : PIMCOTicker : PFORXPeer Group : IM International Fixed Income

(MF)Benchmark : Barclays Global Aggregate Ex

USD (Hedged)Fund Inception : 12/03/1992Portfolio Manager : Scott A. MatherTotal Assets : $4,544 MillionTotal Assets Date : 09/30/2013Gross Expense : 0.50%Net Expense : 0.50%Turnover : 383% The fund modestly outperformed the benchmark during the third quarter due to positive outperformance in agency MBS and nonagency MBS

and ABS.The fund’s underweight in Japanese bonds detracted from results, which did well relative to other regions.The fund reduced its duration meaningfully by approximately 1.5 years to be overall duration underweight relative to the benchmark, with nearlyall of the selling occurring in Japanese bond positions.Eurozone and U.K. bonds detracted from performance modestly.Currency positioning modestly contributed to performance during the quarter.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

PIMCO Foreign Bond (USD-Hedged) I 1.06 -0.48 1.40 5.11 9.05 6.14 11.19 6.77 9.19 19.04 -2.36 3.98 2.94 5.72 6.65 3.57Barclays Global Aggregate Ex USD (Hedged) 0.97 0.77 2.07 3.06 4.70 4.27 6.46 3.94 3.28 4.43 5.75 4.27 3.19 5.42 5.26 2.42IM International Fixed Income (MF) Median 2.01 -3.82 -3.49 1.30 4.96 4.73 6.68 2.98 6.44 9.00 2.24 9.29 5.47 -8.08 10.81 17.63PIMCO Foreign Bond (USD-Hedged) I Rank 70 9 10 2 3 18 17 7 24 11 81 83 82 4 80 85

PIMCO Foreign Bond (USD-Hedged) I

September 30, 2013

41



CurrentQuarter

1Year

3Years

5Years

PIMCO Foreign Bond (USD-Hedged) I 1.1 (70) 1.4 (10) 5.1 (2) 9.1 (3)Barclays Global Aggregate Ex USD (Hedged) 1.0 (74) 2.1 (9) 3.1 (22) 4.7 (57)

5th Percentile 4.1 3.3 4.7 9.01st Quartile 3.6 -0.6 2.7 8.1Median 2.0 -3.5 1.3 5.03rd Quartile 0.9 -6.0 0.1 3.795th Percentile -0.1 -7.8 -1.0 2.8


September 30, 2013

42



1Year

3Years

5Years

10Years


Barclays Global Aggregate Ex USD (Hedged)Return 2.07 3.06 4.70 4.27Standard Deviation 2.59 2.56 2.58 2.44

vs. Barclays Global Aggregate Ex USD (Hedged)Tracking Error 1.27 1.93 3.52 2.95Alpha -1.11 1.71 4.41 1.67Beta 1.23 1.10 0.97 1.04R-Squared 0.89 0.68 0.33 0.43Consistency 41.67 61.11 68.33 60.00




September 30, 2013

43

FUND INFO


FUND OBJECTIVE


The fund takes a conservative approach toward emerging market fixed-income investing. Top-down work begins with a 3-5 year outlook for theglobal economy and interest rates followed by using a country-bond allocation model to help determine which countries have the best risk adjustedyield. Country selection also takes into account fiscal and reserve positions, relationship to external trends, and the potential for adverse technicalconditions. The bottom-up strategy focuses on credit research, stressing fundamental and in depth relative value analysis of all potential holdings.The strategy is managed against the JPM GBI-EM Global Diversified Unhedged Index.

Product Name : PIMCO:Em Local Bd;Inst (PELBX)

Fund Family : PIMCOTicker : PELBXPeer Group : IM Emerging Markets Debt (MF)Benchmark : JPM GBI-EM Global DiversifiedFund Inception : 12/29/2006Portfolio Manager : Michael GomezTotal Assets : $10,765 MillionTotal Assets Date : 09/30/2013Gross Expense : 0.90%Net Expense : 0.90%Turnover : 47%

The fund performed in line during the third quarter, and the fund’s overweight to Brazil contributed to performance; PIMCO views Brazil’s centralbank as credible and views the country’s high real rates as attractive because priced-in inflation is too high.An underweight to Hungary detracted from performance as the country’s bonds outperformed and the Forint appreciated.The fund’s position in Mexican bonds was mostly in line during the quarter; the firm expects low Mexican inflation and a positive influence on theeconomy coming from a slightly improved view of the U.S. economy.The portfolio remains overweight to Brazil and Mexico and their currencies, and underweight to Turkey due to the country’s large current accountdeficit and non-credible central bank using unorthodox measures to combat high inflation.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

PIMCO Emerging Local Bd Fd Inst -0.36 -9.17 -5.82 1.33 7.79 N/A 15.81 -0.78 15.55 29.27 -10.66 12.29 N/A N/A N/A N/AJPM GBI-EM Global Diversified -0.43 -7.56 -3.73 1.84 7.28 10.05 16.76 -1.75 15.68 21.98 -5.22 18.11 15.22 6.27 22.97 16.92IM Emerging Markets Debt (MF) Median 0.40 -7.11 -3.69 4.50 9.89 8.48 18.64 5.51 12.80 35.57 -18.37 4.82 11.02 11.40 12.61 30.39PIMCO Emerging Local Bd Fd Inst Rank 86 95 90 95 88 N/A 85 84 13 90 6 1 N/A N/A N/A N/A

PIMCO Emerging Local Bd Fd Inst

September 30, 2013

44



CurrentQuarter

1Year

3Years

5Years

PIMCO Emerging Local Bd Fd Inst -0.4 (86) -5.8 (90) 1.3 (95) 7.8 (88)JPM GBI-EM Global Diversified -0.4 (90) -3.7 (53) 1.8 (89) 7.3 (88)

5th Percentile 1.8 1.3 6.0 13.01st Quartile 0.8 -1.7 5.1 10.3Median 0.4 -3.7 4.5 9.93rd Quartile -0.1 -4.7 3.8 9.195th Percentile -0.6 -6.3 1.3 5.4


September 30, 2013

45



1Year

3Years

5Years

10Years

Return -5.82 1.33 7.79 N/AStandard Deviation 11.55 12.69 15.52 N/A

JPM GBI-EM Global DiversifiedReturn -3.73 1.84 7.28 10.05Standard Deviation 10.55 12.76 14.84 12.23

vs. JPM GBI-EM Global DiversifiedTracking Error 1.65 1.61 2.18 N/AAlpha -1.77 -0.48 0.29 N/ABeta 1.09 0.99 1.04 N/AR-Squared 0.99 0.98 0.98 N/AConsistency 33.33 38.89 43.33 N/A

vs. 90 Day U.S. Treasury BillSharpe Ratio -0.47 0.16 0.55 N/A



September 30, 2013

46

FUND INFO


FUND OBJECTIVE


The portfolio is built based on Dodge & Cox's fundamental research effort, a three-to-five year time horizon, and a strong price discipline. It investsin companies that appear to be temporarily undervalued by the stock market but have a favorable outlook for long-term growth, while focusing onthe underlying financial condition and prospects of individual companies, including future earnings, cash flow, and dividends. Other factors,including financial strength, economic condition, competitive advantage, and quality of the business franchise are weighed against valuation inselecting individual securities. By prospectus, the fund can invest up to 20% of its assets in U.S. dollar-denominated foreign securities.

Product Name : Dodge & Cox Stock (DODGX)Fund Family : Dodge & CoxTicker : DODGXPeer Group : IM U.S. Large Cap Value Equity

(MF)Benchmark : Russell 1000 Value IndexFund Inception : 01/04/1965Portfolio Manager : Team ManagedTotal Assets : $47,776 MillionTotal Assets Date : 08/31/2013Gross Expense : 0.52%Net Expense : 0.52%Turnover : 11%

(+) Strong stock selection in financials (+0.8%) and in energy (+0.6%) were the greatest contributors to performance for the quarter.(+) Stock selection in information technology also added value (+0.4%) for the quarter.(+) An overweight in consumer discretionary also had a positive quarterly impact (+0.3%).(+) Year-to-date, sector selection in information technology (+1.9%) and stock selection in telecommunication services (+0.9%) had the biggestpositive impacts on performance.(+) Over 3 years, stock selection in financials (+1.5%) and sector selection in consumer discretionary (+1.3%) gave the biggest boosts toperformance.(+) For 5 years, sector selection in consumer discretionary (+1.3%) and in financials (+1.2%) were the greatest contributors to performance.

As of 9/30/2013, the three largest overweights (versus the Russell 1000 Value Index) were in information technology (+13%), consumer discretionary (+8%), and health care (+6%). The three biggest underweights were in The United States (-17%), energy (-7%), and financials (-6%).The cash weight was 1.6%.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Dodge & Cox Stock 6.93 25.69 29.28 17.82 10.93 8.15 22.01 -4.08 13.49 31.27 -43.31 0.14 18.53 9.37 19.17 32.34Russell 1000 Value Index 3.94 20.47 22.30 16.25 8.86 7.99 17.51 0.39 15.51 19.69 -36.85 -0.17 22.25 7.05 16.49 30.03IM U.S. Large Cap Value Equity (MF) Median 4.52 20.57 22.13 14.71 8.54 7.22 15.51 -2.27 12.78 24.11 -36.93 1.47 17.92 5.15 13.02 28.63Dodge & Cox Stock Rank 6 3 3 3 7 18 1 71 40 15 90 61 44 15 3 21

Dodge & Cox Stock

September 30, 2013

47



CurrentQuarter

1Year

3Years

5Years

Dodge & Cox Stock 6.9 (6) 29.3 (3) 17.8 (3) 10.9 (7)Russell 1000 Value Index 3.9 (77) 22.3 (48) 16.2 (19) 8.9 (44)


Dodge & Cox Stock

September 30, 2013

48

RISK CHARACTERISTICS PORTFOLIO CHARACTERISTICS

SECTOR EXPOSURE (%) TOP 10 HOLDINGS

Portfolio BenchmarkTotal Securities 76 696Price/Earnings (P/E) 19.4 15.1Price/Book (P/B) 3.0 1.9Dividend Yield 2.4 2.4

1Year

3Years

5Years

10Years


Russell 1000 Value IndexReturn 22.30 16.25 8.86 7.99Standard Deviation 9.39 13.17 19.36 15.55

vs. Russell 1000 Value IndexTracking Error 2.28 2.87 3.68 4.05Alpha 7.59 0.27 1.49 -0.27Beta 0.92 1.08 1.07 1.08R-Squared 0.94 0.97 0.97 0.95Consistency 66.67 47.22 53.33 49.17


As of 06/30/2013Capital One Financial Corp ORD 3.9 %Wells Fargo & Co ORD 3.9 %Hewlett-Packard Co ORD 3.7 %Microsoft Corp ORD 3.3 %Comcast Corp ORD 3.3 %Sanofi SA DR 3.1 %Merck & Co Inc ORD 3.0 %Novartis AG DR 2.9 %Time Warner Inc ORD 2.8 %GlaxoSmithKline PLC DR 2.7 %

Dodge & Cox Stock

September 30, 2013

49

FUND INFO


FUND OBJECTIVE


This exchange traded fund (ETF) seeks performance corresponding to the price and yield performance, before fees and expenses, of the large capportion of the U.S. equity market, as represented by the S&P 500 Index. Each stock in the Index is held on a market capitalization weighted basiswhere the size of the position in the stock is based on the size of the stock as measured by the stock price times the number of shares outstanding.The fund attempts to replicate this index by holding all or substantially all of the stocks in the S&P 500.

Product Name : iShares:Core S&P 500 (IVV)Fund Family : BlackRock Fund AdvisorsTicker :Peer Group : IM U.S. Large Cap Core Equity

(MF)Benchmark : S&P 500Fund Inception : 05/15/2000Portfolio Manager : Team ManagedTotal Assets : $45,207 MillionTotal Assets Date : 09/30/2013Gross Expense : 0.07%Net Expense : 0.07%Turnover : 4%

Due to the passive nature of this product, commentary not provided.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

iShares Core S&P 500 ETF 5.23 19.74 19.28 16.17 9.96 7.50 15.91 2.03 14.96 26.43 -36.95 5.44 15.69 4.83 10.77 28.53S&P 500 5.24 19.79 19.34 16.27 10.02 7.57 16.00 2.11 15.06 26.46 -37.00 5.49 15.79 4.91 10.88 28.68IM U.S. Large Cap Core Equity (MF) Median 5.61 19.63 20.00 14.95 9.07 7.10 15.38 -0.50 13.08 26.21 -36.91 5.86 14.20 5.17 9.79 26.14iShares Core S&P 500 ETF Rank 64 48 60 27 27 34 41 24 22 50 51 55 32 56 39 31

iShares Core S&P 500 ETF

September 30, 2013

50



CurrentQuarter

1Year

3Years

5Years

iShares Core S&P 500 ETF 5.2 (64) 19.3 (60) 16.2 (27) 10.0 (27)S&P 500 5.2 (63) 19.3 (59) 16.3 (25) 10.0 (26)



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SECTOR EXPOSURE (%)

Portfolio

TOP 10 HOLDINGS

1Year

3Years

5Years

10Years


S&P 500Return 19.34 16.27 10.02 7.57Standard Deviation 8.65 12.23 17.93 14.63

vs. S&P 500Tracking Error 0.01 0.02 0.04 0.03Alpha -0.05 -0.06 -0.04 -0.05Beta 1.00 1.00 1.00 1.00R-Squared 1.00 1.00 1.00 1.00Consistency 8.33 5.56 21.67 19.17


Total Securities 503Avg. Market Cap 105.14 (Billion)P/E 21.06P/B 3.98Div. Yield 2.47%Annual EPS 11.255Yr EPS 6.523Yr EPS Growth 17.52

As of 08/31/2013Apple Inc ORD 3.1 %Exxon Mobil Corp ORD 2.7 %Microsoft Corp ORD 1.7 %Johnson & Johnson ORD 1.7 %General Electric Co ORD 1.6 %Chevron Corp ORD 1.6 %Google Inc ORD 1.6 %Procter & Gamble Co ORD 1.5 %Berkshire Hathaway Inc ORD 1.4 %Wells Fargo & Co ORD 1.4 %


September 30, 2013

52

FUND INFO


FUND OBJECTIVE


This exchange traded fund (ETF) seeks performance corresponding to the price and yield performance, before fees and expenses, of the large capgrowth portion of the U.S. equity market, as represented by the Russell 1000 Growth Index. The Russell 1000 Growth Index is comprised of thestocks within the Russell 1000 Index with higher price-to-book values and higher forecasted growth values. The Russell 1000 Index measures theperformance of the 1,000 largest companies in the Russell 3000 Index.

Product Name : iShares:Russ 1000 Gr ETF (IWF)

Fund Family : BlackRock Fund AdvisorsTicker :Peer Group : IM U.S. Large Cap Growth

Equity (MF)Benchmark : Russell 1000 Growth IndexFund Inception : 05/22/2000Portfolio Manager : Team ManagedTotal Assets : $20,348 MillionTotal Assets Date : 09/30/2013Gross Expense : 0.20%Net Expense : 0.20%Turnover : 17% Due to the passive nature of this product, commentary not provided.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

iShares Russell 1000 Growth Index 8.05 20.69 19.04 16.71 11.87 7.63 15.03 2.47 16.47 36.94 -38.48 11.63 8.86 5.08 6.09 29.46Russell 1000 Growth Index 8.11 20.87 19.27 16.94 12.07 7.82 15.26 2.64 16.71 37.21 -38.44 11.81 9.07 5.26 6.30 29.75IM U.S. Large Cap Growth Equity (MF) Median 9.52 20.61 19.35 15.05 10.24 7.14 14.91 -1.77 15.13 34.63 -39.64 13.77 6.52 5.67 7.29 26.63iShares Russell 1000 Growth Index Rank 75 50 55 22 23 34 49 12 34 39 40 69 24 58 66 32

iShares Russell 1000 Growth Index

September 30, 2013

53



CurrentQuarter

1Year

3Years

5Years

iShares Russell 1000 Growth Index 8.0 (75) 19.0 (55) 16.7 (22) 11.9 (23)Russell 1000 Growth Index 8.1 (74) 19.3 (51) 16.9 (19) 12.1 (20)



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54


SECTOR EXPOSURE (%)

Portfolio

TOP 10 HOLDINGS

1Year

3Years

5Years

10Years


Russell 1000 Growth IndexReturn 19.27 16.94 12.07 7.82Standard Deviation 8.96 12.38 17.74 14.96

vs. Russell 1000 Growth IndexTracking Error 0.03 0.03 0.04 0.04Alpha -0.16 -0.17 -0.16 -0.17Beta 1.00 1.00 1.00 1.00R-Squared 1.00 1.00 1.00 1.00Consistency 0.00 2.78 10.00 6.67


Total Securities 612Avg. Market Cap 87.01 (Billion)P/E 24.51P/B 6.19Div. Yield 2.26%Annual EPS 11.795Yr EPS 13.343Yr EPS Growth 18.99

As of 08/31/2013Apple Inc ORD 4.1 %Microsoft Corp ORD 3.3 %Google Inc ORD 2.7 %International Business Machines Corp ORD 2.2 %The Coca-Cola Co ORD 1.7 %Philip Morris International Inc ORD 1.6 %Verizon Communications Inc ORD 1.6 %PepsiCo Inc ORD 1.5 %Qualcomm Inc ORD 1.4 %Oracle Corp ORD 1.3 %


September 30, 2013

55

FUND INFO


FUND OBJECTIVE


The process selects stocks from the bottom deciles of NYSE issues, but include only the “value” subset. Stocks are ranked by book-to-marketratio, and stocks falling in the top three deciles (30%) are purchased for the fund. Book value is reconstructed for each eligible issue based onmanagement’s interpretation of how accounting charges affect “real” book value. This product will not own REITs, ADRs or foreign stocks, recentlyissued IPOs, companies with less than 3 years of history, or OTC companies with fewer than 4 market makers.

Product Name : DFA US Small Cap Val;I (DFSVX)

Fund Family : Dimensional Fund Advisors LPTicker : DFSVXPeer Group : IM U.S. Small Cap Value Equity

(MF)Benchmark : Russell 2000 Value IndexFund Inception : 03/02/1993Portfolio Manager : Team ManagedTotal Assets : $9,173 MillionTotal Assets Date : 09/30/2013Gross Expense : 0.52%Net Expense : 0.52%Turnover : 15% (+) An underweight in utilities (+0.4%) and in financials (+0.3%) were the greatest contributors to performance for the quarter.

(+) Stock selection in financials also added value (+0.3%) for the quarter.(-) Weak stock selection in information technology had the most significant negative impact (-0.7%) for the quarter.(+) Year-to-date, stock selection in financials (+2.8%) and sector selection in utilities (+0.7%) had the biggest positive impacts on performance.(+) Over 3 years, good stock selection in energy (+1.4%) and in financials (+0.7%) gave the biggest boosts to performance.(+) For 5 years, effective stock selection in industrials (+1%) and in financials (+0.8%) were the greatest contributors to performance.

As of 7/31/2013, the three largest overweights (versus the Russell 2000 Value Index) were in consumer discretionary (+6%), industrials (+3%), and materials (+3%). The three biggest underweights were in financials (-12%), utilities (-6%), and The United States (-1%). The cash weight was0.1%.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

DFA US Small Cap Value I 8.25 27.44 33.52 19.45 12.33 10.87 21.72 -7.55 30.90 33.62 -36.79 -10.75 21.55 7.79 25.39 59.40Russell 2000 Value Index 7.59 23.07 27.04 16.57 9.13 9.29 18.05 -5.50 24.50 20.58 -28.92 -9.78 23.48 4.71 22.25 46.03IM U.S. Small Cap Value Equity (MF) Median 8.29 25.45 29.41 17.12 10.80 9.46 16.09 -4.97 25.71 28.28 -32.13 -7.34 17.26 6.00 19.80 43.04DFA US Small Cap Value I Rank 52 30 19 11 25 11 9 83 9 30 68 73 9 28 7 14

DFA US Small Cap Value I

September 30, 2013

56



CurrentQuarter

1Year

3Years

5Years

DFA US Small Cap Value I 8.2 (52) 33.5 (19) 19.4 (11) 12.3 (25)Russell 2000 Value Index 7.6 (71) 27.0 (73) 16.6 (59) 9.1 (86)



September 30, 2013

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Portfolio BenchmarkTotal Securities 1,239 1,407Price/Earnings (P/E) 22.8 15.8Price/Book (P/B) 1.5 1.6Dividend Yield 2.0 2.1

1Year

3Years

5Years

10Years


Russell 2000 Value IndexReturn 27.04 16.57 9.13 9.29Standard Deviation 11.21 16.30 24.18 19.69

vs. Russell 2000 Value IndexTracking Error 3.15 3.41 4.02 4.05Alpha 4.54 1.03 2.39 0.86Beta 1.03 1.11 1.11 1.10R-Squared 0.93 0.97 0.99 0.97Consistency 66.67 58.33 60.00 58.33


As of 04/30/2013Avis Budget Group Inc ORD 1.5 %CNO Financial Group Inc ORD 1.2 %Louisiana-Pacific Corp ORD 1.2 %LifePoint Hospitals Inc ORD 1.1 %GATX Corp ORD 1.1 %Esterline Technologies Corp ORD 1.1 %Bristow Group Inc ORD 1.1 %Helix Energy Solutions Group Inc ORD 1.0 %JetBlue Airways Corp ORD 0.9 %Convergys Corp ORD 0.8 %


September 30, 2013

58

FUND INFO


FUND OBJECTIVE


The investment style focuses on high quality small cap companies with long term sustainable growth in the 15 – 20% range. Ideas are generatedapproximately equally across three sources – quantitative screening; regional, boutique brokers; and company contacts through industryconferences, trade shows or other research. Fundamental research is focused on strong earnings and ROE growth, a low debt to capitalizationrate, strong balance sheet, and a solid management team. The portfolio is fairly concentrated at 45 – 50 stocks with turnover around 30%.

Product Name : Conestoga Small Cap (CCASX)Fund Family : Conestoga Capital Advisors

LLCTicker : CCASXPeer Group : IM U.S. Small Cap Growth

Equity (MF)Benchmark : Russell 2000 Growth IndexFund Inception : 10/01/2002Portfolio Manager : Mitchell/MartindaleTotal Assets : $549 MillionTotal Assets Date : 09/30/2013Gross Expense : 1.22%Net Expense : 1.10%Turnover : 16% (+) Strong stock selection in information technology was the greatest contributor to performance (+1.9%) for the quarter.

(+) An underweight in consumer discretionary was also positive adding another 0.6% for the quarter.(+) Stock selection in energy also added value (+0.3%) for the quarter.(+) Year-to-date, good stock selection in information technology had the greatest positive impact on performance (+4.4%).(+) Over the past 3 years, effective stock selection in information technology gave the biggest boost to performance (+6.4%).(+) For the past 5 years, favorable stock selection in information technology gave the biggest boost to performance (+3.7%).

As of 9/30/2013, the three largest overweights (versus the Russell 2000 Growth Index) were in information technology (+16%), industrials (+5%), and energy (+4%). The three biggest underweights were in consumer discretionary (-11%), financials (-5%), and consumer staples (-4%). Thecash weight was 2.8%.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Conestoga Small Cap 15.43 34.47 35.59 21.43 14.32 11.50 11.00 4.55 23.99 29.09 -27.68 6.43 9.18 4.39 18.81 33.68Russell 2000 Growth Index 12.80 32.47 33.07 19.96 13.17 9.85 14.59 -2.91 29.09 34.47 -38.54 7.05 13.35 4.15 14.31 48.54IM U.S. Small Cap Growth Equity (MF) Median 12.33 32.60 31.94 19.77 12.18 9.06 12.29 -3.94 26.80 33.02 -42.36 7.57 9.51 5.02 11.45 44.48Conestoga Small Cap Rank 21 38 22 29 32 3 61 3 68 74 1 55 53 58 9 88

Conestoga Small Cap

September 30, 2013

59



CurrentQuarter

1Year

3Years

5Years

Conestoga Small Cap 15.4 (21) 35.6 (22) 21.4 (29) 14.3 (32)Russell 2000 Growth Index 12.8 (40) 33.1 (38) 20.0 (48) 13.2 (38)


Conestoga Small Cap

September 30, 2013

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Portfolio BenchmarkTotal Securities 52 1,120Price/Earnings (P/E) 40.5 23.5Price/Book (P/B) 5.7 3.7Dividend Yield 1.6 0.7

1Year

3Years

5Years

10Years


Russell 2000 Growth IndexReturn 33.07 19.96 13.17 9.85Standard Deviation 12.32 17.70 23.78 20.32

vs. Russell 2000 Growth IndexTracking Error 5.00 5.91 6.17 6.26Alpha 2.94 4.13 2.77 3.05Beta 0.97 0.84 0.84 0.82R-Squared 0.85 0.89 0.94 0.92Consistency 66.67 58.33 50.00 51.67


As of 08/31/2013CoStar Group Inc ORD 4.4 %Tyler Technologies Inc ORD 3.1 %HealthStream Inc ORD 3.0 %Proto Labs Inc ORD 3.0 %Raven Industries Inc ORD 2.9 %Sun Hydraulics Corp ORD 2.8 %ACI Worldwide Inc ORD 2.7 %Align Technology Inc ORD 2.6 %Stratasys Ltd ORD 2.6 %Bottomline Technologies (DE) Inc ORD 2.5 %

Conestoga Small Cap

September 30, 2013

61

FUND INFO


FUND OBJECTIVE


The fund is sub-advised by Capital Research and Management Company. Using a common pool of industry analysts for research, eight portfoliocounselors construct independent portfolios using their individual styles from growth to value. The fund tends to focus on blue chip multinationalcompanies while allowing each portfolio sleeve to invest up to 25% in emerging markets. The resulting portfolio holds over 300 securities withrelatively low turnover.

Product Name : American Funds EuPc;F-2 (AEPFX)

Fund Family : American FundsTicker : AEPFXPeer Group : IM International Large Cap Core

Equity (MF)Benchmark : MSCI EAFE IndexFund Inception : 08/01/2008Portfolio Manager : Team ManagedTotal Assets : $8,131 MillionTotal Assets Date : 08/31/2013Gross Expense : 0.59%Net Expense : 0.59%Turnover : 27% (-) An overweight in India had the most significant negative impact (-1.1%) for the quarter.

(-) Stock selection in financials also detracted -0.9% for the quarter.(-) An overweight in Taiwan also had a detrimental impact (-0.4%) for the quarter.(-) Year-to-date, country selection in India (-1.9%) and stock selection in financials (-1.7%) were the biggest drags on performance.(-) Over 3 years, stock selection in financials (-1.3%) and country selection in India (-1.1%) had the most significant negative impacts.(+) For the past 5 years, beneficial stock selection in information technology gave the biggest boost to performance (+1.1%).

As of 9/30/2013, the three largest overweights (versus the MSCI EAFE Index) were in information technology (+7%), China (+5%), and South Korea (+4%). The three biggest underweights were in The United Kingdom (-10%), Japan (-9%), and financials (-9%). The cash weight was1.6%.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

American Funds EuroPacific Gr F-2 9.52 11.83 18.15 6.99 7.42 N/A 19.54 -13.36 9.67 39.47 N/A N/A N/A N/A N/A N/AMSCI EAFE Index 11.61 16.59 24.29 8.97 6.85 8.50 17.90 -11.73 8.21 32.46 -43.06 11.63 26.86 14.02 20.70 39.17IM International Large Cap Core Equity (MF) Median 10.84 14.25 22.30 8.02 5.75 7.79 18.09 -12.68 7.59 29.39 -42.72 11.08 25.42 13.26 17.40 32.65American Funds EuroPacific Gr F-2 Rank 85 85 87 77 11 N/A 26 65 26 12 N/A N/A N/A N/A N/A N/A

American Funds EuroPacific Gr F-2

September 30, 2013

62



CurrentQuarter

1Year

3Years

5Years

American Funds EuroPacific Gr F-2 9.5 (85) 18.1 (87) 7.0 (77) 7.4 (11)MSCI EAFE Index 11.6 (17) 24.3 (15) 9.0 (15) 6.9 (13)



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63


SECTOR EXPOSURE (%)REGION WEIGHTS (%)


1Year

3Years

5Years

10Years

Return 18.15 6.99 7.42 N/AStandard Deviation 9.89 15.97 21.11 N/A

MSCI EAFE IndexReturn 24.29 8.97 6.85 8.50Standard Deviation 11.61 17.07 21.98 18.28

vs. MSCI EAFE IndexTracking Error 2.85 3.90 4.47 N/AAlpha -1.53 -1.13 0.89 N/ABeta 0.83 0.91 0.94 N/AR-Squared 0.96 0.95 0.96 N/AConsistency 25.00 41.67 50.00 N/A

vs. 90 Day U.S. Treasury BillSharpe Ratio 1.74 0.50 0.44 N/A


September 30, 2013

64

FUND INFO


FUND OBJECTIVE


The fund seeks to invest in high quality companies when they are trading at a discounted price. High quality companies are defined as those withrecurring revenue growth, a quality management team, a “core” business, and strong balance sheet. Fundamental research is conducted byAberdeen's global team to understand the growth prospects of the firm and the quality of the financials. The valuation metrics used are determined by the type of company and its economic sector. Within risk controls, portfolios are constructed on a bottom-up basis using a very long-termoutlook that has led to a low turnover rate, but can also produce higher tracking error. The portfolio will typically hold 50 - 70 securities. Expensecap of 0.95% expires on 11/23/11. Expenses after 11/23 will reflect actual fees capped at 1.10% through 2/27/13 (reviewed annually thereafter).

Product Name : Aberdeen:Em Mkt;I (ABEMX)Fund Family : Aberdeen Asset Management

IncTicker : ABEMXPeer Group : IM Emerging Markets Equity

(MF)Benchmark : MSCI Emerging Markets IndexFund Inception : 05/11/2007Portfolio Manager : Team ManagedTotal Assets : $10,574 MillionTotal Assets Date : 09/30/2013Gross Expense : 1.10%Net Expense : 1.10%Turnover : 1% (-) Detrimental stock selection in financials (-1.2%) and in consumer discretionary (-1.1%) had the most significant negative impacts for the quarter.

(-) An underweight in South Korea also had a detrimental impact (-0.9%) for the quarter.(-) An underweight in China also had a negative quarterly impact (-0.8%).(-) Year-to-date, poor stock selection in consumer discretionary (-2.1%) and in South Africa (-0.7%) were the biggest drags on performance.(+) Over 3 years, favorable stock selection in Brazil (+1.5%) and in financials (+1.3%) gave the biggest boosts to performance.(+) For 5 years, strong stock selection in financials (+2.4%) and in Brazil (+1.9%) were the greatest contributors to performance.

As of 9/30/2013, the three largest overweights (versus the MSCI EM Index) were in financials (+8%), Hong Kong (+7%), and India (+6%). The three biggest underweights were in China (-13%), South Korea (-10%), and Taiwan (-7%). The cash weight was 2.3%.


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Aberdeen Emerging Markets Instl 2.57 -6.52 0.26 3.56 12.80 N/A 26.15 -11.05 27.58 76.55 -40.36 N/A N/A N/A N/A N/AMSCI Emerging Markets Index 5.90 -4.05 1.33 0.00 7.56 13.16 18.64 -18.17 19.20 79.02 -53.18 39.78 32.59 34.54 25.95 56.28IM Emerging Markets Equity (MF) Median 5.23 -3.82 2.18 -0.71 6.09 11.86 18.70 -19.55 18.30 73.45 -54.74 36.60 32.01 32.12 24.15 54.45Aberdeen Emerging Markets Instl Rank 80 78 68 14 1 N/A 8 4 7 35 2 N/A N/A N/A N/A N/A

Aberdeen Emerging Markets Instl

September 30, 2013

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CurrentQuarter

1Year

3Years

5Years

Aberdeen Emerging Markets Instl 2.6 (80) 0.3 (68) 3.6 (14) 12.8 (1)MSCI Emerging Markets Index 5.9 (42) 1.3 (59) 0.0 (39) 7.6 (26)

5th Percentile 9.9 14.6 4.8 11.11st Quartile 7.4 5.1 1.2 7.6Median 5.2 2.2 -0.7 6.13rd Quartile 3.3 -0.6 -2.1 4.695th Percentile -0.6 -4.6 -5.8 0.8


September 30, 2013

66


SECTOR EXPOSURE (%)REGION WEIGHTS (%)


1Year

3Years

5Years

10Years

Return 0.26 3.56 12.80 N/AStandard Deviation 13.41 17.55 24.12 N/A

MSCI Emerging Markets IndexReturn 1.33 0.00 7.56 13.16Standard Deviation 11.21 19.36 26.13 23.88

vs. MSCI Emerging Markets IndexTracking Error 4.87 5.55 5.72 N/AAlpha -1.03 3.46 5.42 N/ABeta 1.12 0.87 0.90 N/AR-Squared 0.88 0.92 0.96 N/AConsistency 58.33 55.56 56.67 N/A



September 30, 2013

67

FUND INFO



FUND OBJECTIVE

The fund is managed on a relative basis with a focus on individual stock selection rather than economic or market cycles. The ultimate goal is toselect securities that have positive growth aspects at a reasonable price. A research-driven team approach utilizes front end quantitative screenswith qualitative assessments, sub-sector analysis, and economic research. The outcome is a diversified portfolio from both a sector and geographic basis, which holds securities with the best risk/reward for their given industry. The fund was renamed from First American Real EstateSecurities in January 2011. Effective December 31, 2010, the fund is closed to new investment.

Product Name : Nuveen Real Est;I (FARCX)Fund Family : Nuveen Fund Advisors LLCTicker : FARCXPeer Group : IM Real Estate Sector (MF)Benchmark : FTSE NAREIT Equity REIT

IndexFund Inception : 06/30/1995Portfolio Manager : Rosenberg/Wenker/SedlakTotal Assets : $3,499 MillionTotal Assets Date : 09/30/2013Gross Expense : 1.03%Net Expense : 1.03%Turnover : 76%

The Fund declined for the quarter but outperformed its benchmark due to positive contributions from both stock selection and sector allocations.Outperformance was led by strong stock selection in the self-storage and healthcare sectors. An overweight to higher growth companies ledto gains within self-storage.An underweight and a preference for select service and smaller cap companies with lower exposure to conferences and group bookings detracted from returns in the hotel sector.The team reduced exposure to sectors with longer lease profiles like net-lease and healthcare. The modest shift added to quarterly returns asthese sectors lagged over rising interest rate fears.Looking forward, the team sees continued well above average growth in net operating income and contained supply growth in most major property sectors.

T. Leedy, Senior Alternative Investment Research Analyst, DiMeo Schneider & Associates, L.L.C 3Q13


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Nuveen Real Estate Secs I -2.59 2.34 4.94 12.13 7.17 11.24 18.34 7.89 30.57 30.53 -34.80 -15.19 39.47 15.29 32.49 37.58FTSE NAREIT Equity REIT Index -3.09 3.20 5.87 12.34 5.75 9.53 18.06 8.29 27.94 28.01 -37.74 -15.70 35.03 12.17 31.56 37.08IM Real Estate Sector (MF) Median -2.87 1.96 4.18 11.20 5.31 8.86 16.84 7.89 27.46 29.04 -38.99 -17.22 34.69 12.48 32.31 35.94Nuveen Real Estate Secs I Rank 36 37 27 15 12 1 24 50 13 28 10 16 1 17 45 29

Nuveen Real Estate Secs I

September 30, 2013

68



CurrentQuarter

1Year

3Years

5Years

Nuveen Real Estate Secs I -2.6 (36) 4.9 (27) 12.1 (15) 7.2 (12)FTSE NAREIT Equity REIT Index -3.1 (67) 5.9 (16) 12.3 (10) 5.7 (39)

5th Percentile -0.9 7.2 14.6 10.91st Quartile -2.3 5.1 11.8 6.3Median -2.9 4.2 11.2 5.33rd Quartile -3.2 3.4 10.4 4.495th Percentile -4.1 1.1 9.2 3.1


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69

RISK CHARACTERISTICS REGION DISTRIBUTION

SECTOR EXPOSURE (%)

1Year

3Years

5Years

10Years


FTSE NAREIT Equity REIT IndexReturn 5.87 12.34 5.75 9.53Standard Deviation 13.37 16.36 32.10 25.77

vs. FTSE NAREIT Equity REIT IndexTracking Error 0.97 0.79 2.39 2.12Alpha -0.70 0.02 1.37 1.86Beta 0.96 0.98 0.94 0.95R-Squared 1.00 1.00 1.00 1.00Consistency 33.33 52.78 53.33 59.17



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70

FUND INFO


FUND OBJECTIVE


The fund combines a position in commodity-linked derivative instruments, primarily swaps through an offshore subsidiary, with an activelymanaged portfolio principally consisting of Treasury Inflation Protected Securities (TIPS). The derivatives only require the fund to hold around 15%of its assets as collateral. The commodity-linked derivatives capture the return potential and diversification benefits of the commodity futuresmarket, while PIMCO's active fixed income management seeks to outperform T-Bills, net of fees. The strategy has the added advantage of benefiting concurrently from the inflation hedging properties of both commodity futures and TIPS (Double Real).

Product Name : PIMCO:Comm RR Str;Inst (PCRIX)

Fund Family : PIMCOTicker : PCRIXPeer Group : IM Commodities General (MF)Benchmark : Dow Jones-UBS Commodity

IndexFund Inception : 06/28/2002Portfolio Manager : Mihir WorahTotal Assets : $11,636 MillionTotal Assets Date : 09/30/2013Gross Expense : 0.87%Net Expense : 0.74%Turnover : 57%

The fund outperformed for the quarter driven by both alpha strategies and collateral management.TIPS collateral versus T-Bills collateral in the benchmark was the primary driver of outperformance as falling real yields led TIPS tooutperform T-Bills. Going forward, the team is targeting a neutral duration position and lower maturity bonds that should be less impacted bypolicy initiatives.Key detractors included modest duration exposure to Brazil and short positioning in Japanese interest rates, as yields respectively rose andfell during the quarter.Short spread trades in soybeans and corn produced positive results following better than expect harvest expectations.A preference for West Texas Intermediate (WTI) vs. Brent crude aided returns.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

PIMCO Commodity Real Ret Strat Instl 3.47 -12.82 -17.85 -0.68 -1.06 4.70 5.31 -7.56 24.13 39.91 -43.33 23.80 -3.04 20.50 16.36 29.82Dow Jones-UBS Commodity Index 2.13 -8.56 -14.35 -3.16 -5.29 2.14 -1.06 -13.32 16.83 18.91 -35.65 16.23 2.07 21.36 9.15 23.93

PIMCO Commodity Real Ret Strat Instl

September 30, 2013

71


RISK CHARACTERISTICS STRATEGY ALLOCATION (index)1

Year3

Years5

Years10

YearsReturn -17.85 -0.68 -1.06 4.70Standard Deviation 11.43 18.00 23.01 21.44

Dow Jones-UBS Commodity IndexReturn -14.35 -3.16 -5.29 2.14Standard Deviation 9.00 16.21 19.00 18.15

vs. Dow Jones-UBS Commodity IndexTracking Error 5.25 4.38 6.74 6.26Alpha -1.80 3.04 6.09 2.72Beta 1.14 1.08 1.17 1.14R-Squared 0.80 0.95 0.93 0.93Consistency 66.67 66.67 68.33 57.50

vs. 90 Day U.S. Treasury BillSharpe Ratio -1.66 0.05 0.07 0.25

PIMCO Commodity Real Ret Strat Instl

September 30, 2013

72

FUND INFO


FUND OBJECTIVE


Kayne Anderson MLP Investment Co. is a non-diversified, closed-end management investment company whose investment objective is to obtain ahigh after-tax total return by investing the vast majority of it's total assets in energy related MLPs and other Midstream Energy Companies. MLPsare publicly traded limited partnerships. Energy-related MLPs own domestic infrastructure assets that are used in the gathering, processing,transportation, storage, refining and distribution of energy-related commodities. Kayne Anderson differentiates itself through an extensive network of relationships with major energy companies and an investment team with over 134 years of combined energy experience. The fund may also investin private or restricted investment opportunities not available to retail investors along with debt securities of MLPs and other Midstream EnergyCompanies.

Assets under Management (9/30/13)$6,098 Million

Inception Date9/28/04

Management Fee (9/30/13)2.4%

Management Fee is obtained from the most recentannual report. It represents the management fee asa percentage of average net assets which reflectsthe fund's deferred tax liability.

The Fund’s price return of approximately 14% outperformed its NAV return of 5.6% and the benchmark during the quarter.The Fund’s premium to NAV increased during the quarter by 8.4%.Key detractors included an underweight to Enterprise Products Partners LP, an overweight to ONEOK Partners LP and limited exposure to thePropane sector.Overweight allocations to MLPs within the shipping and gathering and processing sectors drove gains.Strength within their crude business segments led to DCP Midstream Partners L.P. and MarkWest Energy Partners L.P. quarterlyoutperformance.During the quarter, the team tilted the portfolio towards midstream MLPs while decreasing general partner MLPs.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Kayne Anderson MLP Invst Co -6.32 25.78 23.18 19.18 18.35 N/A 6.27 3.52 35.86 71.05 -40.04 -5.51 44.91 3.24 N/A N/AAlerian MLP Index -0.73 21.18 17.05 16.48 22.34 15.67 4.80 13.88 35.85 76.41 -36.80 12.42 27.62 5.22 15.92 41.60

Kayne Anderson MLP Invst Co

September 30, 2013

73


RISK CHARACTERISTICS STRATEGY ALLOCATION1

Year3

Years5

Years10

YearsReturn 23.18 19.18 18.35 N/AStandard Deviation 17.12 16.07 26.99 N/A

Alerian MLP IndexReturn 17.05 16.48 22.34 15.67Standard Deviation 14.25 13.62 18.16 16.40

vs. Alerian MLP IndexTracking Error 13.46 14.58 23.30 N/AAlpha 9.83 9.17 3.98 N/ABeta 0.78 0.62 0.78 N/AR-Squared 0.42 0.28 0.28 N/AConsistency 66.67 61.11 53.33 N/A


Kayne Anderson MLP Invst Co

September 30, 2013

74

FUND INFO


FUND OBJECTIVE


Tortoise Energy Infrastructure Corp. is a non-diversified, closed-end management investment company. The fund seeks to provide investors withan efficient vehicle to invest in publicly traded energy infrastructure MLPs while providing a high level of total return with an emphasis on currentdistributions. The fund may additionally invest in private or restricted investment opportunities not available to retail investors along with debtsecurities of MLPs and other Midstream Energy Companies.

Assets under Management (9/30/13)$2,080 Million

Inception Date3/2/04

Management Fee (9/30/13)1.60%

Management Fee is obtained from the most recentannual report. It represents the management fee asa percentage of average net assets which reflectsthe fund's deferred tax liability.

The Fund’s price return of -0.01% outperformed its NAV return of -0.25% and the benchmark during the quarter.The Fund’s premium to NAV increased during the quarter by 0.3%.A preference for midstream MLP sectors relative to commodity sensitive segments drove quarterly outperformance.An underweight and strong stock selection in natural gas pipelines was the top quarterly contributor. Specifically, the outperformance of a general partner company the Fund owns relative to its MLP drove results.Avoidance of the oil and gas production sector was the second largest contributor to results. The sector suffered from its largest constituent, declining almost 20%.Stock selection in the gathering and processing sector weighed on results but was mitigated by positioning in crude oil pipelines.



Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Tortoise Energy Infrastructure Corp. -0.01 25.74 19.39 16.53 23.23 N/A 0.23 10.81 31.51 99.46 -44.35 1.66 41.66 4.50 N/A N/AAlerian MLP Index -0.73 21.18 17.05 16.48 22.34 15.67 4.80 13.88 35.85 76.41 -36.80 12.42 27.62 5.22 15.92 41.60

Tortoise Energy Infrastructure Corp.

September 30, 2013

75



Year3

Years5

Years10

YearsReturn 19.39 16.53 23.23 N/AStandard Deviation 23.01 19.08 21.62 N/A

Alerian MLP IndexReturn 17.05 16.48 22.34 15.67Standard Deviation 14.25 13.62 18.16 16.40

vs. Alerian MLP IndexTracking Error 15.10 11.43 12.74 N/AAlpha -0.45 -1.18 2.21 N/ABeta 1.24 1.13 0.96 N/AR-Squared 0.59 0.65 0.65 N/AConsistency 58.33 52.78 53.33 N/A


Tortoise Energy Infrastructure Corp.

September 30, 2013

76

FUND INFO


FUND OBJECTIVE


Assets under Management 3/31/2013$5.0 Billion

Inception Date01/00

Minimum Investment$5,000,000 (Negotiable at Manager Discretion)

Management FeeAnnual fees:First $25 m = 1.25%, Next $25 m = 1.00%,Next $50 m = 0.80%, Over $100 m = 0.60%;Fee is subject to a 0.75% min

Performance FeeN/A

ContributionsQuarterly

WithdrawalsQuarterly with 70 days notice

Grosvenor Institutional Partners (“GIP”) is a globally diversified, multi-strategy, multi-manager portfolio that allocates its assets to hedge fundmanagers that specialize in a wide range of alternative investment strategies. GIP has two primary investment objectives: to provide its investorswith a superior long-term, risk-adjusted rate of return and to preserve capital. The Fund will allocate to approximately 40 managers.

The Fund turned in another solid quarter as five out of six sub-strategies delivered positive results.Long-short equity managers accounted for over half of the quarterly gain as a result of broad based positive stock selection. In particular,consumer related companies outperformed as well as select activist holdings.Macro strategies detracted as interest rate trading and long U.S. dollar positioning versus emerging market currencies hurt performance.Systematic strategies continue to struggle in the current market environment.Credit and relative value contributed meaningful gains through legacy distressed and structured credit positions. The team has slightly scaledback these strategy allocations as profitable positions roll off.During the third quarter, Grosvenor announced an agreement to acquire the Credit Suisse Group AG Customized Fund Investment Group(CFIG), a global private equity, infrastructure and real estate investment management company. The deal is expected to close by year-end.

B. Anderson Alternative Investment Research Analyst, DiMeo Schneider & Associates, L.L.C 3Q13


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Grosvenor Inst'l Partners, L.P. 3.54 10.39 13.01 5.91 4.62 4.67 8.43 -3.82 6.66 13.95 -20.89 10.69 9.40 6.80 6.92 11.16HFRI Fund of Funds Composite Index 1.77 5.19 6.58 2.50 1.95 3.40 4.79 -5.72 5.70 11.47 -21.37 10.25 10.39 7.49 6.86 11.61

Grosvenor Inst'l Partners, L.P.

September 30, 2013

77



Year3

Years5

Years10

YearsReturn 13.01 5.91 4.62 4.67Standard Deviation 2.85 4.09 5.10 5.07

HFRI Fund of Funds Composite IndexReturn 6.58 2.50 1.95 3.40Standard Deviation 3.25 4.18 5.26 5.54

vs. HFRI Fund of Funds Composite IndexTracking Error 1.22 1.52 1.74 1.68Alpha 7.31 3.56 2.80 1.67Beta 0.82 0.91 0.92 0.87R-Squared 0.86 0.87 0.89 0.91Consistency 83.33 69.44 65.00 56.67


Grosvenor Inst'l Partners, L.P.

September 30, 2013

78

FUND INFO


FUND OBJECTIVE


Firm Assets under Management 3/31/2013$3.2 Billion

Inception Date10/02

Minimum Investment$5,000,000

Management Fee1%

Performance Fee10%

ContributionsMonthly

WithdrawalsQuarterly with 65 days notice

Magnitude International is a globally diversified multi-strategy FOHF which targets attractive risk-adjusted returns with limited exposure to passiverisk factors. Management displays a quantitative, arbitrage and relative value bias and will evaluate “corners of the market” for small positions.

Core industrial positions such as Boeing, Delphi, General Motors, and Taminco, were the four biggest winners. Investments in the energy andmaterials sectors, meanwhile, did not enjoy the same level of outperformance.Boeing rose 19% during the quarter and contributed 93 bps to performance. In the case of Taminco, a specialty chemical producer, the Fundcapitalized on the market pullback in April, becoming the company’s second largest shareholder during and immediately following its “broken”IPO. Shares rallied 36% during the quarter and added 65 bps to the Fund’s performance.The top 5 losers for the quarter include Tempur-Pedic International, Williams Cos Inc.., Huntsman, Equinix, and International Paper Co.Tempur-Pedic sold off 12% over concern about the pace of industry sales and second quarter guidance from management that assumedsignificant one-time costs associated with a new series of product launches from Tempur-Pedic and Sealy.Senator continues to be bullish on corporate activity and has positioned the portfolio accordingly. They are focusing on companies that canengage in accretive mergers and acquisitions and also exert pricing power to grow earnings. These companies have been the Funds’ largestwinners year-to-date. Examples include IntercontinetnalExchange, Delta Air Lines, Hertz, Atlas Energy, and Actavis.

M. Bolotin, Alternative Investment Research Analyst, DiMeo Schneider & Associates, L.L. C. 2Q 2013


Year3

Years5

Years10

Years 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Magnitude International 0.20 2.71 4.72 5.99 5.95 6.67 7.70 4.67 6.75 25.71 -21.64 13.54 14.30 8.67 8.42 11.60HFRI Fund of Funds Composite Index 1.77 5.19 6.58 2.50 1.95 3.40 4.79 -5.72 5.70 11.47 -21.37 10.25 10.39 7.49 6.86 11.61

Magnitude International

September 30, 2013

79



Year3

Years5

Years10

YearsReturn 4.72 5.99 5.95 6.67Standard Deviation 2.03 2.14 5.62 5.24

HFRI Fund of Funds Composite IndexReturn 6.58 2.50 1.95 3.40Standard Deviation 3.25 4.18 5.26 5.54

vs. HFRI Fund of Funds Composite IndexTracking Error 2.34 2.77 3.26 2.90Alpha 1.85 4.91 4.21 3.85Beta 0.44 0.41 0.88 0.81R-Squared 0.49 0.64 0.68 0.73Consistency 50.00 63.89 66.67 61.67


Magnitude International

September 30, 2013

80

Index Definitions & DisclosuresPlease note: Due to rounding methodologies of various data providers, certain returns in this report might differ slightly when compared to other sources.

Index Definitions:-Barclays Treasury U.S. T-Bills-1-3 Months includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars and must be fixed rate and non convertible.-Barclays Capital US Treasury Inflation Protected Securities Index measures bonds with fixed rate coupon payments that adjust for inflation as measured by the Consumer Price Index. All bonds must be publicly traded, investment grade and have a minimum maturity of one year and a minimum amount outstanding of $250 million of face value. It currently is comprised of only US Treasury issued securities.-Barclays Muni 5 Year index contains USD-denominated municipal bonds with maturities between 4 and 6 years that are classified as revenue bonds, general obligation bonds, pre-refunded bonds, or insured bonds.-Barclays U.S. Aggregate and Global Aggregate ex. USD Indices are unmanaged market value-weighted performance benchmarks for investment-grade fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of at least one year. -The Barclays U.S. Corporate High Yield Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds with a maturities of greater than one year. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt. -JP Morgan Government Bond Index-Emerging Market (GBI-EM) Index is a comprehensive emerging market debt index that tracks local currency bonds issued by emerging market governments; The Index is comprised of 14 countries whose weights are capped at 10% to avoid bias to more debt-laden countries.-The S&P 500 is based on the average performance of the 500 industrial stocks monitored by Standard & Poor’s.-The Dow Jones Industrial Index is based on the average performance of the 30 blue-chip stocks monitored.-The NASDAQ measures all domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market.-Russell 3000 is a market-cap-weighted index which consists of roughly 3,000 of the largest companies in the U.S. As such, it represents nearly 98% of the investable U.S. equity market.-Russell 1000 is a market-cap-weighted index which consists of roughly 1,000 of the largest companies in the U.S. -Russell 1000 Growth measures the performance of those Russell 1000 companies with higher P/B ratios and higher forecasted growth values.-Russell 1000 Value measures the performance of those Russell 1000 companies with lower P/B ratios and lower forecasted growth values.-Russell Mid Cap measures the performance of the 800 smallest companies in the Russell 1000 Index.-Russell Mid Cap Growth measures the performance of those Russell Mid Cap companies with higher P/B ratios and higher forecasted growth values.-Russell Mid Cap Value measures the performance of those Russell Mid Cap companies with lower P/B ratios and lower forecasted growth values.-Russell 2000 is a market-cap-weighted index which consists of the 2,000 smallest U.S. companies in the Russell 3000 universe. -Russell 2000 Growth measures the performance of the Russell 2000 companies with higher P/B ratios and higher forecasted growth values.-Russell 2000 Value measures the performance of those Russell 2000 companies with lower P/B ratios and lower forecasted growth values. -MSCI ACWI (All Country World Index) ex. U.S. Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets. The index consists of the 48 developed and emerging markets outside the U.S. This index represents approximately 60% of global market capitalization measured in U.S. dollars.-MSCI EAFE is a market-cap weighted index representing 22 of the developed markets outside North America. These 22 countries include 16 European countries and 6 Pacific countries.-MSCI EAFE Value and MSCI EAFE Growth are free float-adjusted market cap indexes designed to measure the equity market performance of developed markets, excluding US & Canada. Five growth and three value variables are used to assign stocks to a specific style index. These include, book value to price, 12-months forward earnings to price, dividend yield, long-term forward earnings per share (EPS) growth rate, short-term forward EPS growth rate, current internal growth rate, long-term historical EPS growth trend, and long-term historical sales per share growth trend.-MSCI EAFE Small Cap Index represents the small cap size segment of the MSCI EAFE Index. The small cap universe consists of the securities of those companies whose securities are not included in the large cap or mid cap segments of a particular market, which together comprise approximately 85% of each market’s free float-adjusted market cap. The small cap segment covers the 85-99% range of each market’s free float-adjusted market cap.-MSCI Emerging Markets is a market-cap weighted index representing the major emerging countries in the world.-Consumer Price Index is the United States Headline Consumer Price Index.-NAREIT Equity REITs measures equity REITs. The index contains health care REITs, but no mortgage and hybrid REITs.-S&P Developed World Property x U.S. measures the investable universe of publicly traded property companies in developed countries outside of the U.S.-S&P Developed World Property measures the investable universe of publicly traded property companies in developed countries.-Dow Jones UBS Commodity Index is composed of futures contracts on 19 physical commodities. No related group of commodities (e.g., energy, precious metals, livestock, grains, etc.) may constitute more than 33% of the index. Livestock = live cattle and lean hogs. Softs = sugar, cotton and coffee. Industrial Metals = aluminum, copper, zinc and nickel. Precious Metals = gold and silver. Grains = wheat, corn, soybeans. Energy = natural gas, crude oil, unleaded gas and heating oil. Petroleum = crude oil, unleaded gas and heating oil.-HFRI Fund Weighted Composite Index - Fund of Funds invest with multiple managers through funds or managed accounts. The strategy designs a diversified portfolio of managers with the objective of significantly lowering the risk (volatility) of investing with an individual manager. The Fund of Funds manager has discretion in choosing which strategies to invest in for the portfolio. A manager may allocate funds to numerous managers within a single strategy, or with numerous managers in multiple strategies. The minimum investment in a Fund of Funds may be lower than an investment in an individual hedge fund or managed account. The investor has the advantage of diversification among managers and styles with significantly less capital than investing with separate managers. PLEASE NOTE: The HFRI Fund of Funds Index is not included in the HFRI Fund Weighted Composite Index.-The Alerian MLP Index is a composite of the 50 most prominent energy master limited partnerships and will be calculated by Standard & Poor’s using a float-adjusted, market capitalization-weighted methodology.-Cambridge Associates LLC calculates end-to-end returns for both a U.S. private equity index and a U.S. venture capital index. For the private equity index, data is compiled from 986 U.S. private equity funds formed since 1986, and for the U.S. venture capital index, 1,368 venture capital funds formed since 1981 are used. Returns include fully liquidated partnerships, and are net of fees, expenses, and carried interest. Historical returns are updated at year end to adjust for changes in the index sample. Data is subject to a one or two quarter lag, and may include the most recent preliminary data release when prudent to minimize the lag in data.Additional:-Equity sector returns are calculated by Russell and MSCI for domestic and international markets, respectively. MSCI sector definitions correspond to the MSCI GICS® classification (Global Industry Classification System); Russell uses its own sector and industry classifications. -MSCI country returns are calculated by MSCI, and are free float-adjusted market capitalization indices that are designed to measure equity market performance in each specific country.-Currency returns are calculated using Bloomberg’s historical spot rate indices and are calculated using the U.S. dollar as the base currency.-The Index of Leading Economic Indicators, calculated by The Conference Board, is used as a barometer of economic activity over a range of three to six months. The index is used to determine the direction and stability of the economy. The composite index of leading indicators, which is derived from 10 leading indicators, helps to signal turning points in the economy and forecast economic cycles. The leading indicators are the following: average weekly hours, average weekly initial claims, manufacturers new orders, both consumer and non defense capital goods, vendor performance, building permits, stock prices, money supply (M2), the interest rate spread and the index of consumer expectations.

81

DEFINITION OF KEY STATISTICS

Returns Time-weighted average annual returns for the time periods indicated. Time weighted returns seek to eliminate the impact of external cash flows on the rate of return calculations. All returns are annualized if the period for which they are calculated exceeds one year.

Universe Comparison The universe compares the fund's returns to a group of other investment portfolios with similar investment strategies. The returns for the fund, the index and the universe percentiles are displayed. A percentile ranking of 1 is the best, while a percentile ranking of 100 is the worst. For example, a ranking of 50 indicates the fund outperformed half of the universe. A ranking of 25 indicates the fund was in the top 25% of the universe, outperforming 75%. Returns In Up/Down Markets This measures how the fund performed in both up and down markets. The methodology is to segregate the performance for each time period into the quarters in which the market, as defined by the index, was positive and negative. Quarters with negative index returns are treated as down markets, and quarters with positive index returns are treated as up markets. Thus, in a 3 year or 12 quarter period, there might be 4 down quarters and 8 up quarters. A simple arithmetic average of returns is calculated for the fund and the index based on the up quarters. A simple arithmetic average of returns is calculated for the fund and the index based on the down quarters. The up market capture ratio is the ratio of the fund's return in up markets to the index. The down market capture ratio is the ratio of the fund's return in down markets to the index. Ideally, the fund would have a greater up market capture ratio than down market capture ratio.

Standard Deviation Standard deviation is a statistical measure of the range of performance within which the total returns of a fund fall. When a fund has a high standard deviation, the range of performance is very wide, meaning there is a greater volatility. Approximately 68% of the time, the total return of any given fund will differ from the average total return by no more than plus or minus the standard deviation figure. Ninety-five percent of the time, a fund’s total return will be within a range of plus or minus two times the standard deviation from the average total return. If the quarterly or monthly returns are all the same the standard deviation will be zero. The more they vary from one another, the higher the standard deviation. Standard deviation can be misleading as a risk indicator for funds with high total returns because large positive deviations will increase the standard deviation without a corresponding increase in the risk of the fund. While positive volatility is welcome, negative is not.

R-Squared This reflects the percentage of a fund’s movements that are explained by movements in its benchmark index. An R-squared of 100 means that all movements of a fund are completely explained by movements in the index. Conversely, a

low R-squared indicates very few of the fund’s movements are explained by movements in the benchmark index. R-squared can also be used to ascertain the significance of a particular beta. Generally, a higher R-squared will indicate a more reliable beta figure. If the R-squared is lower, then the beta is less relevant to the fund’s performance. A measure of diversification, R-squared indicates the extent to which fluctuations in portfolio returns are explained by market. An R-squared = 0.70 implies that 70% of the fluctuation in a portfolio's return is explained by the fluctuation in the market. In this instance, overweighting or underweighting of industry groups or individual securities is responsible for 30% of the fund's movement.

Beta This is a measure of a fund’s market risk. The beta of the market is 1.00. Accordingly, a fund with a 1.10 beta is expected to perform 10% better than the market in up markets and 10% worse that the market in down markets. It is

important to note, however, a low fund beta does not imply the fund has a low level of volatility; rather, a low beta means only that the fund’s market-related risk is low. Because beta analyzes the market risk of a fund by showing how responsive the fund is to the market, its usefulness depends on the degree to which the markets determine the fund's total risk (indicated by R-squared ).

AlphaThe Alpha is the nonsystematic return, or the return that can’t be attributed to the market. It can be thought of as how the manager performed if the market’s return was zero. A positive alpha implies the manager added value to the return of the portfolio over that of the market. A negative alpha implies the manager did not contribute any value over the performance of the market.

Sharpe Ratio The Sharpe ratio is the excess return per unit of total risk as measured by standard deviation. Higher numbers are better, indicating more return for the level of risk experienced. The ratio is a fund's return minus the risk-free rate of return

(30-day T-Bill rate) divided by the fund’s standard deviation. The higher the Sharpe ratio, the more reward you are receiving per unit of total risk. This measure can be used to rank the performance of mutual funds or other portfolios.

Treynor Ratio The Treynor ratio measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. The ratio relates excess return over the risk-free rate to the additional risk taken; however, systematic risk is used instead of total risk. The Treynor ratio is similar to the Sharpe ratio, except in the fact that it uses the beta to evaluate the returns rather than the standard deviation of portfolio returns. High values mean better return for risk taken.

Tracking Error Tracking error measures the volatility of the difference in annual returns between the manager and the index. This value is calculated by measuring the standard deviation of the difference between the manager and index returns. For example, a tracking error of +/- 5 would mean there is about a 68% chance (1 standard deviation event) that the manager's returns will fall within +/- 5% of the benchmark's annual return.

Information Ratio The information ratio is a measure of the consistency of excess return. This value is determined by taking the annualized excess return over a benchmark (style benchmark by default) and dividing it by the standard deviation of excess return.

Consistency Consistency shows the percent of the periods the fund has beaten the index and the percent of the periods the index has beat the fund. A high average for the fund (e.g. over 50) is desirable, indicating the fund has beaten the index frequently.

Downside Risk Downside risk is a measure similar to standard deviation, but focuses only on the negative movements of the return series. It is calculated by taking the standard deviation of the negative quarterly set of returns. The higher the factor, the riskier the product.

M-Squared M-squared, or the Modigliani risk-adjusted performance measure is used to characterize how well a portfolio’s return rewards an investor for the amount of risk taken, relative to that of some benchmark portfolio and to the risk-free rate.

82

VALUATION POLICY

DiMeo Schneider does not engage an independent third party pricing service to value securities. Our reports are generated using the security prices provided by custodians used by our clients. Our pricing hierarchy is to first use valuations provided by the custodian that holds assets for the greatest number of clients. If a client holds a security not reported by this custodian, the valuation is generated from the next most prominent custodian, and so forth. Each custodian uses pricing services from outside vendors, where the vendors may generate nominally different prices. Therefore, this report can reflect minor valuation differences from those contained in a custodian’s report.

REPORTING POLICY

This report is intended for the exclusive use of clients of DiMeo Schneider & Associates, L.L.C. Content and format is privileged and confidential. Any dissemination or distribution of this report is strictly prohibited.

The information contained in this report has been obtained from trade and statistical services and other sources which are deemed but not guaranteed to be accurate. Any opinions expressed herein reflect our judgment at this date and are subject to change.

OTHER

Rule 204-3 under the Investment Advisors Act of 1940 requires that we make an annual offer to clients to send them, without charge, a written disclosure statement meeting the requirements of such rule. We will be glad to send a copy of such a statement to you upon your written request.

Please advise us of any changes in your objectives or circumstances.

VANGUARD SPLICED INDEX DEFINITIONS

Vanguard Balanced Composite Index: Made up of two unmanaged benchmarks, weighted 60% Dow Jones U.S. Total Stock Market Index (formerly the Dow Jones Wilshire 5000 Index) and 40% Lehman Brothers U.S. Aggregate Bond Index through May 31, 2005; 60% MSCI US Broad Market Index and 40% Barclays U.S. Aggregate Bond Index through December 31, 2009; 60% MSCI US Broad Market Index and 40% Barclays U.S. Aggregate Float Adjusted Index through January 14, 2013; and 60% CRSP US Total Market Index and 40% Barclays U.S. Aggregate Float Adjusted Index thereafter.

Vanguard REIT Spliced Index: MSCI US REIT Index adjusted to include a 2% cash position (Lipper Money Market Average) through April 30, 2009; MSCI US REIT Index thereafter.

Vanguard Spliced Barclays US1-5Yr Gov/Cr Flt Adj Index: Barclays U.S. 1–5 Year Government/Credit Bond Index through December 31, 2009; Barclays U.S. 1–5 Year Government/Credit Float Adjusted Index thereafter.

Vanguard Spliced Barclays US5-10Yr Gov/Cr Flt Adj Index: Barclays U.S. 5–10 Year Government/Credit Bond Index through December 31, 2009; Barclays U.S. 5–10 Year Government/Credit Float Adjusted Index thereafter.

Vanguard Spliced Barclays US Agg Flt Adj Index: Barclays U.S. Aggregate Bond Index through December 31, 2009; Barclays U.S. Aggregate Float Adjusted Index thereafter.

Vanguard Spliced Barclays US Long Gov/Cr Flt Adj Index: Barclays U.S. Long Government/Credit Bond Index through December 31, 2009; Barclays U.S. Long Government/Credit Float Adjusted Index thereafter.

Vanguard Spliced Developed Markets Index: MSCI EAFE Index through April 30, 2013; FTSE Developed ex North America Index thereafter.

Vanguard Spliced Dev ex North America Index: MSCI EAFE Index through May 31, 2013; FTSE Developed ex North America Index thereafter.

Vanguard Spliced Emerging Markets Index: Spliced Emerging Markets Index reflects performance of the Select Emerging Markets Index through August 23, 2006; the MSCI Emerging Markets Index through January 9, 2013; and the FTSE Emerging Transition Index thereafter.

Vanguard Spliced Extended Market Index: Dow Jones Wilshire 4500 Index through June 17, 2005; S&P Transitional Completion Index through September 16, 2005; S&P Completion Index thereafter.

Vanguard Spliced Growth Index: S&P 500 Growth Index (formerly the S&P 500/Barra Growth Index) through May 16, 2003; MSCI US Prime Market Growth Index through April 16, 2013; CRSP US Large Cap Growth Index thereafter.

Vanguard Spliced Intermediate-Term Tax-Exempt Index: Barclays 7 Year Municipal Bond Index through January 31, 2002; Barclays 1–15 Year Municipal Bond Index thereafter.

Vanguard Spliced Mid Cap Growth Index: MSCI US Mid Cap Growth Index through April 30, 2013; CRSP US Mid Cap Growth Index thereafter.

Vanguard Spliced Mid Cap Value Index: MSCI US Mid Cap Value Index through April 30, 2013; CRSP US Mid Cap Value Index thereafter.

Vanguard Spliced Large Cap Index: Consists of MSCI US Prime Market 750 Index through January 30, 2013, and the CRSP US Large Cap Index thereafter.

Vanguard Spliced Mid Cap Index: S&P MidCap 400 Index through May 16, 2003; the MSCI US Mid Cap 450 Index through January 30, 2013; and the CRSP US Mid Cap Index thereafter.

Vanguard Spliced Small Cap Growth Index: S&P SmallCap 600 Growth Index (formerly the S&P SmallCap 600/Barra Value Index) through May 16, 2003; MSCI US Small Cap Growth Index through April 16, 2013; CRSP US Small Cap Growth Index thereafter.

Vanguard Spliced Small Cap Index: Russell 2000 Index through May 16, 2003; the MSCI US Small Cap 1750 Index through January 30, 2013; and the CRSP US Small Cap Index thereafter.

Vanguard Spliced Small Cap Value Index: SmallCap 600 Value Index (formerly the S&P SmallCap 600/Barra Value Index) through May 16, 2003; MSCI US Small Cap Value Index through April 16, 2013; CRSP US Small Cap Value Index thereafter.

Vanguard Spliced Total International Stock Index: Consists of the Total International Composite Index through August 31, 2006; the MSCI EAFE + Emerging Markets Index through December 15, 2010; and the MSCI ACWI ex USA IMI Index thereafter. Returns for the MSCI indexes are adjusted for withholding taxes.

Vanguard Spliced Total Stock Market Index: Dow Jones U.S. Total Stock Market Index (formerly the Dow Jones Wilshire 5000 Index) through April 22, 2005; MSCI US Broad Market Index through June 2, 2013; and CRSP US Total Market Index thereafter.

Vanguard Spliced Value Index: S&P 500 Value Index (formerly the S&P 500/Barra Value Index) through May 16, 2003; MSCI US Prime Market Value Index through April 16, 2013; CRSP US Large Cap Value Index thereafter.

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Documents

Exceeding Your Expectationsestrada.cune.edu/staffweb/Curt.Sherman/Investment... · and U.S. Treasuries. U.S. TIPS rallied on the news, but still remain down significantly year-to-date