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Agenda

Investment Committee

April 27, 2017, 8:00 am

Join from PC, Mac, Linux, iOS or Android: https://zoom.us/j/674342182

Or iPhone one-tap (US Toll): +14086380968,674342182# or +16465588656,674342182#

Or Telephone:

Dial: +1 408 638 0968 (US Toll) or +1 646 558 8656 (US Toll)

Meeting ID: 674 342 182

Approve minutes of February 13, 2017.

New Business:

1) BTC Capital Management Report (Annette & Jeff will call in)

2) Advantus Capital Management Report (Bob Diedrich & Linda Sauber)

3) Review ICA Holdings Report

4) Approve Investment manager reports

5) Committee goals

Miscellaneous

https://zoom.us/j/674342182

B T C C A P I T A L M A N A G E M E N T | 4 5 3 7 t h S T R E E T | D E S M O I N E S , I A 5 0 3 0 9

WESTERN FRATERNAL LIFE ASSOCIATION DATA AS OF 3.31.2017


Source: BTC Capital Management, Bloomberg LP, CMS BondEdge, Investment Scorecard. Information has been obtained from sources deemed reliable, but BTC Capital Management, its affiliates or agents, cannot guarantee accuracy. Past performance is not indicative of future returns. Performance for periods exceeding 12-months has been annualized.

PORTFOLIO OVERVIEW

* Does not include the IMR release

2

Bond Investments*** Portfolio

Book Value (Millions) $248.6Book Yield* 4.42%Average Maturity** 8.4Effective Duration 6.2Average Quality A+Sector Allocation

** Calculated using average life for mortgage-backed and asset-backed securities

US Treasury 0.2% US Government Agency 6.2% US Corporate 43.8% Foreign, US Dollar Den. 6.4% Municipal 22.0% MBS - Agency 14.3% MBS - Non-Agency 0.5% CMBS - Agency 4.9% CMBS - Non-Agency 0.6% ABS 1.2%

*** All statistics calculated based upon book value.



PORTFOLIO CHANGE

3

* Does not include the IMR release

** Calculated using average life for mortgage-backed and asset-backed securities

Bond Investments*** 3/31/2017 12/31/2016Book Value (Millions) $248.6 $248.9 -$0.3 $4.0Book Yield* 4.42% 4.42% 0.00% -0.08%Average Maturity** 8.4 8.5 -0.1 0.8Effective Duration 6.2 6.4 -0.2 0.2Average Quality A+ A+ - Downgraded

Sector Allocation US Treasury 0.2% 0.2% 0.0% -0.3% US Government Agency 6.2% 6.4% -0.2% -1.6% US Corporate 43.8% 43.3% 0.5% 4.8% Foreign, US Dollar Den. 6.4% 6.4% 0.0% 0.0% Municipal 22.0% 22.2% -0.2% -1.3% MBS - Agency 14.3% 14.3% 0.0% -0.8% MBS - Non-Agency 0.5% 0.5% 0.0% -0.2% CMBS - Agency 4.9% 4.9% 0.0% -0.3% CMBS - Non-Agency 0.6% 0.6% 0.0% 0.0% ABS 1.2% 1.2% 0.0% -0.2%

Quarterly Change

Annual Change

*** All statistics calculated based upon book value.



CREDIT QUALITY CHANGE

Moody's Rating

3/31/2017Aaa 32.2% 0.5% -1.7%Aa 15.5% -0.4% -1.4%A 26.4% 0.0% 0.5%Baa 16.5% 0.1% 3.3%Ba 1.1% 0.0% -0.2%B 0.1% 0.0% -0.1%Below B 0.1% 0.0% 0.0%NR 8.2% 0.0% -0.2%

Quarterly Change

Annual Change

S&P Rating

3/31/2017AAA 25.6% 0.2% -1.0%AA 24.0% -0.4% -2.8%A 24.7% 0.2% 1.2%BBB 17.7% -0.2% 3.2%BB 0.4% -0.1% -0.3%B 0.2% 0.1% 0.0%Below B 0.3% 0.0% 0.0%NR 7.1% 0.0% -0.3%

Quarterly Change

Annual Change

Moody's Ratings for Bonds NR by S&P

Aaa 1.9%Aa 2.9%A 1.1%Baa 0.0%Ba 0.0%B 0.1%Below B 0.0%NR 1.2%

S&P Ratings for Bonds NR by Moody's

AAA 0.6%AA 2.5%A 3.1%BBB 0.6%BB 0.0%B 0.2%Below B 0.2%NR 1.2%

4

Most of the NR bonds carry either an AAA or AA rating by the other agency. There are three bonds in the portfolio that are notrated by either Moody's or S&P. Below is a breakdown of the bonds in the NR category.



5

PURCHASES AND SALES 1Q2017

Purchases (excludes Swaps)Trade Date Cusip Name Coupon Maturity Yield Par Price Cost Duration Rating

1/6/2017 20030NBY6 COMCAST CORP 3.300% 2/1/2027 3.32% 500,000$ 99.803 499,015$ 8.5 A3/A-/A-3/9/2017 44107TAX4 HOST HOTELS & RESORTS L 3.875% 4/1/2024 3.95% 250,000$ 99.575 248,938$ 6.1 Baa2/BBB-/BBB

3/17/2017 3137ACW96 FHLMC 3895 CLASS PW 4.500% 7/15/2041 3.48% 610,000$ 110.719 675,385$ 10.23/24/2017 918204AR9 VF CORP 6.000% 10/15/2033 4.32% 400,000$ 119.711 478,844$ 10.8 A3/A/

New Purchases 3.71% 1,760,000$ 1,902,181$ 9.4

Purchases Using Sale Proceeds - SwapsTrade Date Cusip Name Coupon Maturity Yield Par Price Cost Duration Rating

Purchases using Sale Proceeds - Swaps 0.00% -$ -$ 5.0

Total Bonds Purchased 3.71% 1,760,000$ 1,902,181$ 9.4

Bonds Sold (excludes Swaps)

Trade Date Cusip Name Coupon Maturity Yield Par Price Est. Cost

Basis ProceedsEstimated Gain/Loss

New Sales -$ -$ -$ -$

Bonds Sold as Swap Transactions Cost EstimatedTrade Date Cusip Name Coupon Maturity Yield Par Price Basis Proceeds Gain/Loss

Bonds Sold as Swaps 0.00% -$ -$ -$ -$

Total Bonds Sold 0.00% -$ -$ -$ -$



LARGEST HOLDINGS

New Purchase Description Book Value Moody's S&P Fitch Ratings Change

JOHNSON (S.C.) & SON 2,416,935$ A A-DEERE & COMPANY 2,108,245$ A2 A ASYSCO CORPORATION 2,072,099$ A3 BBB+DEPT OF TRANS U.S. (STEP UP) 2,000,000$ WRMICHIGAN ST 1,998,153$ Aa1 AA- AATOYOTA MOTOR CREDIT CORP 1,983,988$ Aa3 AA-BECTON DICKINSON 1,974,696$ Baa2 BBB+ELI LILLY & CO 1,932,481$ A2 AA- AuCOCA-COLA REFRESH USA 1,855,441$ WR AA- A+MERCK & CO 1,842,699$ A1 AA AuFIDELITY INVESTMENT LLC 1,838,567$ A2 A+ A+MINNESOTA LIFE INSURANCE 1,814,119$ A2 A- A+ROYAL BANK OF CANADA 1,783,243$ Aa3 AA- AAASTRAZENECA 1,753,450$ A3 A- AuWELLS FARGO & COMPANY 1,750,047$ A3 A- A+TEVA PHARMACEUTICAL 1,716,600$ Baa2 BBB BBBuAPPLE INC 1,684,381$ Aa1 AA+CATERPILLAR INC 1,669,884$ A3 A AAPPLIED MATERIALS INC 1,665,061$ A3 A-PEPSICO INC 1,660,511$ A1 A AuAUSTIN TX 1,601,053$ Aaa AAA AAATARGET CORP 1,593,313$ A2 A A-PHILIPS ELECTRONICS NV 1,553,933$ Baa1 BBB+ A-uINTEL CORP 1,518,697$ A1 A+ A+TEXAS STATE OF STDNT LN G.O. 1,485,604$ Aaa AAACONNECTICUT STATE QUAL SCH CONST 1,472,082$ Aa3 AA- AA-JOHN SEVIER COMB CYCLE 1,429,290$ Aaa AA- AABLOUNT COUNTY TN PUB BLDG G.O. 1,370,994$ WR A+ WDWYETH 1,358,862$ A1 AA A+uTRANS-CANADA PIPELINES 1,324,431$ A3 A-STATE STREET CORP 1,319,660$ A1 A AA-

6



WATCH LIST

7

Moody's S&P FitchCusip Issue Coupon Maturity Book Par Market NAIC Change Rating Outlook Change Rating Outlook Change Rating Outlook

023551AF1 HESS CORP 7.875 10/1/2029 966,606 745,000 898,269 2FE Ba1 STABLE BBB- STABLE BBB- STABLE05948KRM3 BOAA 2004-5 4A2 5.000 6/25/2019 201,515 201,515 202,296 1FM B1 B126694HN1 CWHL 2005-25 A9 5.500 11/25/2035 13,551 13,551 12,447 4FM Caa2 C16162YAC9 CHASE 2006-S4 A3 6.000 12/25/2036 51,686 51,686 42,526 5FM Caa3 CCC C167486FA2 CHICAGO-TXBL-E 6.050 1/1/2029 502,064 500,000 502,065 2FE Ba1 BBB+ /*S BBB- /*S21075WDQ5 CONHE 1996-4 A8 7.220 1/15/2028 19,776 19,776 19,021 4FM Caa1 CCC WD36185MEC2 GMACM 2006-J1 A2 5.750 4/25/2036 385,914 385,914 361,105 4FM D D36242DRF2 GSR 2004-15F 5A1 5.500 1/25/2020 7,983 7,983 7,839 1FM Ba2 CCC379352AL1 GLOBAL MARINE 7.000 6/1/2028 198,765 200,000 162,000 4FE WR B- B395386AP0 GPMH 1999-3 1A7 7.270 6/15/2029 61,453 61,453 61,155 4AM Caa1 CCC682680AQ6 ONEOK INC 4.250 2/1/2022 504,479 500,000 502,500 3FE Ba1 /*+ BB+ /*+717265AJ1 FREEPORT-MCMORAN 7.125 11/1/2027 547,621 500,000 510,000 3FE Ba2 POS BB- STABLE BBB-760985FA4 RAMP 2001-RS3 AI5 5.700 10/25/2031 61,514 61,514 62,115 1FM Caa2 CCC76110G2M2 RALI 2002-QS18 M1 5.500 12/25/2017 15,390 15,390 13,971 4FM D76111XZV8 RFMSI 2005-S7 A5 5.500 11/25/2035 38,778 38,778 35,805 4FM Caa2 D907834AG0 UNION PAC RES 7.150 5/15/2028 198,599 200,000 242,366 2FE Ba1 STABLE BBB BBB

3,775,695 3,502,562 3,635,480

Western Fraternal Life AssociationFirst Quarter Portfolio ReviewApril 27, 2017

Table of Contents

I. Market Update

II. Western Fraternal Life Association Portfolio Review

III. Advantus Update

IV. Appendix

2

Market Update

3

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GDP Growth

-6

-4

-2

0

2

4

6%

Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

Employment

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0%

0

50

100

150

200

250

300

350

$400k

Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17

Nonfarm Payrolls Unemployment

• Fourth quarter GDP at 2.1% was slightly less than the 2.2% estimate.

• Current forecast for year-over-year GDP growth is 2.2% for 2017.

Yield Curve

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5%

3M 6M 1Y 2Y 5Y 10Y 30Y

03/31/16 12/31/16 03/31/17

• The Fed once again met market expectations by raising the Fed Funds rate in March,

causing short term rates to rise.

• Trump optimism has waned and long-term rates declined modestly over the quarter

causing a flattening of the yield curve.

• The unemployment rate remains low at 4.7% at year-end. Average hourly earnings

growth has edged higher at 2.8% yoy.

• The labor market remains resilient with February non-farm payrolls coming in at

235k.

Market Projection of Interest Rates

0.5

1.0

1.5

2.0

2.5

3.0

3.5

6Mo 1Yr 3Yr 5Yr 7Yr 10Yr 30Yr

Treasury Curve 1YR Forward Curve

• Following the March rate increase, the market continues to price in an additional

50bps of tightening.

• Short rates biased higher, but the market is less convinced of continued growth

leading to a drop in expectations at the long-end of the curve.

Economic Overview

Source: Bloomberg, ACM.4

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High Grade New Issuance

0

50

100

150

200

250

300

350

$400

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

Barclays Corporate OAS

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0%

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

High Yield

0.0

0.5

1.0

1.5

2.0

2.5%

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

IG Corporate Industrials Financials Utilities

• Spread compression moderated in first quarter as growth optimism waned, but

ended the quarter tighter overall.

• Investment grade corporate spreads were tighter by 5 basis points across all rating

categories. High yield was again the big mover, with the index OAS tighter by 26

basis points for the period.

Quality

AA- to AAA

21%

A- to A+

31%

BBB- to

BBB+

48%

Term

<6 yrs

45%

6-10 yrs

25%

>10 yrs

30%

Sector

Financial

38%

Industrial

57%

Utility

5%

• The new issue market closed the first quarter with $323 billion of IG supply, driven

by issuer expectations of higher rates.

• Demand remains strong for new issue corporate bonds, and spread concessions

have been tightening for most new issues.

Credit Overview

Source: Bloomberg, ACM, Barclays.5

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0.0

2.0

4.0

6.0

8.0

10.0

12.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Treasury Credit Industrial Utility Financial US MBS ABS CMBS Taxable

Municipal

High Yield

Du

rati

on

Re

turn

%

• Fixed income returns were positive across all sectors, both IG and HY. Taxable munis rebounded from significant underperformance at the end of 2016.

• High yield had another strong quarter with a return of 2.70% following solid equity performance in the first quarter.

Fixed Income Returns - Current Quarter

Source: Barclays.6

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Municipal Supply

0

10

20

30

40

50

$60b

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2016 2017

Barclays Taxable Municipal (Index Eligible OAS)

1.4

1.5

1.6

1.7

1.8

1.9

2.0%

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

GO

42%

Revenue

58%

Refunding

47% New

Capital

53%

• The general trend for taxable municipal bonds for the past 18 months has been

spread tightening

• Taxable municipals take their directional cues more from the corporate market vs.

react to the tax exempt municipal market and its influences

• Taxable municipal issuance continues to account for about 10% of new issue supply

and only account for a fraction of the overall $3.7T municipal bond market

• New issue supply of $76B over the past 3 months was 39% lower sequentially and

7% below the prior year - reflective of issuers' rush to complete deals prior to the

U.S. elections and a more normal seasonal issuance pattern

• For the first time in the past several quarters refunding activity was not the driving

force behind municipal new issuance as bonds issued for new capital purposes

outpaced those issued for refunding activities

• Municipal market participants continue to debate what the demand picture looks

like for tax exempt municipal bonds as the Trump Administration prepares to

address tax reform

• What the Federal Reserve does with interest rates this year should also expect to

have an impact on tax exempt municipal supply

Municipal Overview

Source: Barclays Municipal Indices Monthly, Barclays.7

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Private Placement Supply

0

5

10

15

20

25

30

35

$40

2010 2011 2012 2013 2014 2015 2016 2017*

■ Cross Border 19.0 31.0 31.0 30.6 30.5 24.9 24.2 3.0

■ Domestic 24.0 16.0 23.0 27.9 28.4 36.1 33.4 10.5

Total $43.0 $47.0 $54.0 $58.5 $58.9 $61.0 $57.6 $13.5

Private Placement Market

0

10

20

30

40

50

60

70

80%

2010 2011 2012 2013 2014 2015 2016 2017*

■ NAIC 1 35% 26% 37% 36% 35% 34% 37% 29%

■ NAIC 2 65 74 63 64 65 66 63 71

Advantus Private Placement Acquisition Spreads

0

50

100

150

200

250bp

Private

Public

2012 2013 2014 2015 2016 2017

Spread Advantage (bp) +69 +41 +39 +50 +50 +40

Average Quality BBB+ A- BBB BBB+ BBB BBB

• Q1 2017 USPP Issuance Essentially Flat Year over Year:

-Absent one large issuance ($2.3B), Q1 2017 USPP issuance essentially flat year over

year ($13.5B vs $11.9B a year ago) despite macroeconomic and political uncertainty.

-After a strong January, deal flow slowed in February followed by a slight uptick in

March.

• Investor Demand Remains Strong:

-Similar to last year, new issues have been aggressively bid in the first part of the

year leading to lower allocations and tighter spreads.

-Borrowers continue to value the private placement market, drawing public market

issuers who want to customize tranches and foreign currencies.

• Annual Private Placement Conference Themes:

-Increase in non-USD denominated private placements with investors increasingly

able to provide foreign currencies on swap.

-Infrastructure and project finance transactions expected to increase as a

proportion of DPP market.

-Prevalence of delayed funding, 2 – 12 months post-pricing.

Private Placement Overview

* Source: Private Placement Monitor. Preliminary data. Data as of 03/31/17.

8

Western Fraternal Life AssociationPortfolio Review

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0.0

1.0

2.0

3.0

4.0

5.0

6.0

3 Month 1 Year 2 Year 3 Year Since

Inception

■ Portfolio Gross 1.85 % 3.47 % 3.13 % 5.45 % 4.48 %

■ 50% Corporate 50% Int Corp 1.19 2.87 2.15 3.30 2.60

■ Portfolio vs Benchmark 0.66 0.60 0.98 2.15 1.88

Inception Date: 10/31/2012

Performance Summary

Returns for periods greater than one year are annualized.

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Asset Allocation

Corporates 98.7 %

Securitized 1.3

Call Protection

Non-

Callable98.7 %

Prepayable 1.3

Liquidity

Private 92.4 %

144A 7.6

Fixed Income

Quantity Book Value Total Market Value Acq Yield* Market Yield* Avg Life* Effective Duration* Avg Credit Rating"

Current Quarter $32,109,342 $32,101,636 $32,985,757 4.06% 2.66% 8.21 6.53 BBB+

2016 30,673,332 30,667,906 31,195,859 4.03 2.70 8.50 6.72 BBB+

2015 27,558,954 27,596,027 27,690,214 3.97 3.74 8.49 6.70 BBB+

2014 20,716,176 20,728,448 21,490,513 4.01 3.54 9.25 7.29 BBB+

Portfolio Summary

* Weighted average.

"For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no longer included) have

assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column contains the rating

internally assigned by Advantus Capital Management, Inc. NR = Not Rated.

Slight discrepancies may appear due to rounding.

Total Market Value includes accrued interest.

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Characteristics

Portfolio Benchmark

Effective Duration 6.53 5.81

Convexity 0.63 0.64

Average Quality BBB+ BBB+

Acquisition Yield 4.06% N/A

Yield to Maturity 3.61% 3.06%

Modified Duration 6.58 5.69

Duration Distribution

Duration Portfolio Benchmark

Less than 1 2.63 % 2.19 %

1-3 4.24 24.60

3-5 18.53 25.14

5-7 35.00 18.81

7-10 30.41 15.48

10-15 7.78 7.64

15+ 1.42 6.13

Credit Quality

0.18

2.37

3.98

AA

A

BBB

Contribution to Duration

Sector

1.96

3.36

1.15

0.07

Financial Institutions

Industrial

Utility

ABS

Contribution to Duration

Portfolio Composition

Benchmark = 50% Bloomberg Barclays Corporate 50% Intermediate Corporate


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U.S. 60.0 %

Non-U.S. (excludes

Canada)39.5

Canada 0.5

Australia 15.2 % United Kingdom 8.4 Germany 4.7 Bermuda 3.0 Turks and Caicos Islands 1.7 Ireland 1.6 Denmark 1.4 Belgium 1.4 New Zealand 1.2 Other 1.3

Market Value by Sector

Allocation Acq Yield" Eff Dur

Financial Institutions 32.1 % 4.40 % 6.10

Industrial 52.1 3.96 6.45

Utility 14.4 3.77 7.94

ABS 1.3 3.53 4.91

100.0 % 4.06 % 6.53

Sector and Country Allocation Market Value: $32,657,500as of 03/31/17

* Weighted average.

Country % weighted by market value.


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Current Quarter

2.6

1.6

2.6

4.3

14.2

22.8

12.2

12.1

8.2

10.1

9.2

Less than 1

1-2

2-3

3-4

4-5

5-6

6-7

7-8

8-9

9-10

10+

2016

2.8

1.7

1.5

6.0

2.5

31.4

14.1

12.5

7.3

10.6

9.6

Less than 1

1-2

2-3

3-4

4-5

5-6

6-7

7-8

8-9

9-10

10+

2015

2.9

3.2

2.7

4.0

5.7

14.4

25.1

16.2

11.4

6.8

7.7

Less than 1

1-2

2-3

3-4

4-5

5-6

6-7

7-8

8-9

9-10

10+

2014

0.0

0.0

4.2

3.5

5.4

8.5

21.1

29.3

13.7

3.3

11.1

Less than 1

1-2

2-3

3-4

4-5

5-6

6-7

7-8

8-9

9-10

10+

Effective Duration Distribution

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Current Quarter

34.3%

65.7

0.0

0.0

0.0

0.0

0.0

0.0

NAIC 1

NAIC 2

NAIC 3

NAIC 4

NAIC 5

NAIC 6

FMC

FMR

2016

35.9%

64.1

0.0

0.0

0.0

0.0

0.0

0.0

NAIC 1

NAIC 2

NAIC 3

NAIC 4

NAIC 5

NAIC 6

FMC

FMR

2015

40.3%

58.1

1.6

0.0

0.0

0.0

0.0

0.0

NAIC 1

NAIC 2

NAIC 3

NAIC 4

NAIC 5

NAIC 6

FMC

FMR

2014

43.2%

56.8

0.0

0.0

0.0

0.0

0.0

0.0

NAIC 1

NAIC 2

NAIC 3

NAIC 4

NAIC 5

NAIC 6

FMC

FMR

NAIC Ratings Changes

CUSIP Issue Name Par Value Coupon Maturity

Date Previous

Quarter Rating Current

Quarter Rating Change

There were no NAIC Ratings changes during this period.

NAIC Ratings

The FMC and FMR designations represent holdings in structured securities, primarily non-agency residential mortgage-backed securities (RMBS) and commercial mortgage-

backed securities (CMBS). The NAIC designation for carrying value for both FMC and FMR issues is user-defined.

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Credit Review Summary Totals

Security Type Status Book Value % of Book

Value Market Value % of Market

Value Status Description

Corporate Watch Performance or credit fundamentals have weakened and may become serious

Serious There is a payment obligation at risk

Default A default has occurred, which may be covenant, monetary or other obligation

Bankrupt A bankruptcy filing has occurred

Surveillance 928,571 2.89 981,336 3.00 Performance or credit fundamentals are stable - for monitoring purposes only

Securitized Watch Performance or credit fundamentals have weakened and may become serious

Serious There is a payment obligation at risk

Economic Loss An economic loss has occurred

Bankrupt A bankruptcy filing has occurred

Surveillance 160,000 0.50 153,355 0.47 Performance or credit fundamentals are stable - for monitoring purposes only

AAA 0.0 %

AA+ 0.0

AA 3.5

AA- 0.0

A+ 5.0

A 9.1

A- 15.5

BBB+ 16.4

BBB 28.2

BBB- 22.3

Below Investment Grade 0.0

Portfolio Fixed Income Credit Ratings

Weighted Average Quality Rating = BBB+

Credit Ratings

Security level detail provided on Credit Review Holdings Report

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Credit Review Holdings

Corporate $928,571 $928,571 $981,336

Status+ Sector CUSIP Issue Name Coupon

Maturity Date Current Par

Book Value

Market Value Moody's S&P

Other Rating" NAIC Placement

Surveillance Industrial G8967#AN3Triton Container

International Ltd4.89 % 10/31/2024 $500,000 $500,000 $535,365 NR NR BBB3 2FE Private

Surveillance Industrial G8967#AM5Triton Container

International Ltd4.28 10/31/2022 428,571 428,571 445,971 NR NR BBB3 2FE Private

Securitized $160,000 $160,000 $153,355

Status+ Sector CUSIP Issue Name Coupon

Maturity Date Current Par

Book Value

Market Value Moody's S&P


Surveillance ABS 89690EAE7 TRMF 2014-1A A2 4.09 % 06/15/2032 $160,000 $160,000 $153,355 NR A A2 1FE 144A

+Definitions:

Surveillance - Performance or credit fundamentals are stable - for monitoring purposes only.

Watch - Performance or credit fundamentals have weakened and may become serious.

Serious - There is a payment obligation at risk.

Economic Loss - An economic loss has occurred (Typically only used for Structured securities).

Default - A default has occurred, which may be covenant, monetary, or other obligation.

Bankrupt - A bankruptcy filing has occurred (Typically only used for Corporate securities).

" Weighted average. For holdings for which one or more of the following NRSROs (S&P, Moody's, Fitch, DBRS and AM Best through 10/31/16; effective 11/01/2016 DRBS is no

longer included) have assigned a rating, the holding is placed into an average rating category. For those securities for which an NRSRO has not assigned a rating, this column

contains the rating internally assigned by Advantus Capital Management, Inc. NR=No Rating

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Transaction Summary

Purchases

Par Value Book Value Spread* Other Rating" Acq Yield* Eff Dur*

Current Quarter $1,500,000 $1,500,000 284 BBB- 4.66 5.9

2017 YTD 1,500,000 1,500,000 284 BBB- 4.66 5.9

2016 5,490,000 5,490,000 200 BBB+ 4.10 9.2

2015 7,040,000 7,088,473 182 BBB+ 3.83 N/A

Sales

Par Value Book Value Total Amt Less AI Other Rating" Market Yield* Eff Dur* Gain/Loss

Current Quarter N/A N/A N/A N/A N/A N/A N/A

2017 YTD N/A N/A N/A N/A N/A N/A N/A

2016 500,000 500,000 523,730 A- 3.14 6.5 23,730

2015 N/A N/A N/A N/A N/A N/A N/A

Other Disposals - Current Quarter

Par Value Book Value Total Amt Less AI Other Rating" Market Yield* Eff Dur* Gain/Loss

There were no transactions for these periods.

* Weighted average.

Treasuries are included in the Transaction Summary.




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Purchases - Private 4.66% 5.9 $1,500,000 $1,500,000 BBB- 284

CUSIP Issue Name Maturity

Date Coupon Acq

Yield Trade Date

Eff Dur Par Value Book Value NAIC Moody's S&P

Other Rating" Spread

86801FA@5 Sunstone Hotel Investors Inc 01/10/2028 4.79 % 4.79 % 01/10/2017 8.4 $500,000 $500,000 2Z NR NR BBB- 300

83413UA#7 Solar Capital Limited 05/08/2022 4.60 4.60 02/15/2017 4.6 1,000,000 1,000,000 2Z NR NR BBB- 276

CUSIP Issue Name Price Maturity

Date Coupon Market

Yield Trade Date

Eff Dur Par Value Book Value NAIC Moody's S&P

Other Rating"

Gain/ Loss

There are no sales for this period.

CUSIP Issue Name Price Maturity

Date Coupon Trade Date Par Value Book Value NAIC Moody's S&P

Other Rating"

Gain/ Loss

There are no other disposals for this period.

Transaction Statement Detail




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Fixed Income Holdings 4.06% $32,109,342 $32,657,500 $328,257 100.0%Acq Yield Par Value Market Value Accrued Income % of Portfolio

Fixed Income Detail Holdings

ABS 3.53% $453,333 $453,311 $438,932 4.9


Date Coupon Acq

Yield Par Value Book Value Market

Value Trade Date Moody's S&P


Eff Dur

37952UAD5 SEACO 2014-1A A1 07/17/2024 3.190 % 3.22 % $293,333 $293,311 $285,577 07/23/2014 NR A A 1FE 144A 3.3

89690EAE7 TRMF 2014-1A A2 06/15/2032 4.085 4.12 160,000 160,000 153,355 05/01/2014 NR A A 1FE 144A 7.9

Financial Institutions 4.40% $10,187,015 $10,179,091 $10,497,716 6.1


Date Coupon Acq




Eff Dur

78488@AE5 American Core Realty Fund LP 04/01/2028 3.890 % 3.89 % $167,000 $167,000 $169,782 03/10/2016 NR NR A- 1 Private 8.7

78488@AF2 American Core Realty Fund LP 04/01/2028 3.890 3.89 333,000 333,000 338,548 03/10/2016 NR NR A- 1 Private 8.7

04015CAA6 Ares Finance Co LLC 10/08/2024 4.000 4.21 700,000 690,518 655,540 10/01/2014 NR BBB+ BBB+ 2FE 144A 6.2

04317@AP3 Arthur J Gallagher & Co 06/24/2026 4.360 4.36 350,000 350,000 353,525 06/04/2014 NR NR BBB- 2 Private 7.4

151895C@6 CenterPoint Properties Trust 05/27/2022 3.490 3.49 250,000 250,000 253,555 05/05/2015 NR NR BBB 2 Private 4.6

18055#AM4Clarion Lion Properties Fund

LLC02/14/2024 4.600 4.60 315,000 315,000 342,178 12/05/2013 NR NR A- 2 Private 5.9

18469PA@9ClearBridge Energy MLP

Opportunity Fund02/07/2023 3.870 3.87 461,916 461,916 481,252 01/17/2013 NR NR AA 1FE Private 5.2

18469QA#5ClearBridge Energy MLP

Opportunity Fund03/28/2025 4.080 4.08 260,099 260,099 271,543 01/31/2013 NR NR AA 1FE Private 6.8




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Fixed Income Detail Holdings (continued)



Date Coupon Acq




Eff Dur

29717PB*7 Essex Property Trust Inc 04/30/2021 4.270 3.70 500,000 510,641 529,725 10/29/2013 NR NR BBB+ 2 Private 3.7

Q3958@AG1Goodman Australia Industrial

Fund12/14/2024 4.660 4.66 750,000 750,000 806,760 10/16/2012 NR NR BBB+ 2 Private 6.4

Q2887#AC6 Goodman Property Trust 06/15/2030 3.710 3.71 150,000 150,000 143,829 04/21/2015 NR NR BBB+ 2FE Private 10.1

G4588#BA8Intermediate Capital Group

PLC05/08/2018 5.150 5.15 500,000 500,000 516,330 04/03/2013 NR NR BBB- 2 Private 1.1

Q4975*AB1 Investa Office Fund 04/07/2025 4.550 4.55 200,000 200,000 213,408 01/23/2014 NR NR BBB+ 2 Private 6.6

47032@AG6 James Campbell Company LLC 09/30/2024 4.480 4.48 225,000 225,000 236,430 03/14/2014 NR NR BBB 2 Private 6.3

Q6235#AE2 Mirvac Group (The) 12/18/2022 4.440 4.44 450,000 450,000 475,916 11/07/2013 NR NR BBB 2FE Private 5.0

667469AA8Northwest Florida Timber

Finance LLC03/04/2029 4.750 4.90 700,000 690,917 661,500 04/03/2014 NR A+ A+ 1FE 144A 8.8

674003A#5Oaktree Capital Management

LP09/03/2029 4.210 4.21 425,000 425,000 434,490 06/04/2014 NR NR A+ 1FE Private 9.6

74986@AN1 RREEF America REIT II Inc 01/15/2024 4.330 4.33 425,000 425,000 454,631 10/16/2013 NR NR A- 1 Private 5.8

83413UA#7 Solar Capital Limited 05/08/2022 4.600 4.60 1,000,000 1,000,000 1,055,880 11/23/2016 NR NR BBB- 2FE Private 4.5

85253#AC5 STAG Industrial Inc 12/30/2026 4.420 4.42 700,000 700,000 708,323 11/20/2014 NR NR BBB- 2 Private 7.8

862121A*1 STORE Capital Corp 11/21/2022 4.950 4.95 425,000 425,000 456,697 10/30/2015 NR NR BBB- 2FE Private 4.8

86801FA@5 Sunstone Hotel Investors Inc 01/10/2028 4.790 4.79 500,000 500,000 518,070 10/17/2016 NR NR BBB- 2Z Private 8.3

89147LE*7Tortoise Energy Infrastructure

Corp09/27/2020 3.780 3.78 300,000 300,000 312,906 09/17/2013 NR NR AA 1FE Private 3.3




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Date Coupon Acq




Eff Dur

89147LE@5Tortoise Energy Infrastructure

Corp09/27/2023 4.390 4.39 100,000 100,000 106,899 09/17/2013 NR NR AA 1FE Private 5.6

Industrial 3.96% $16,742,522 $16,742,764 $17,014,161 6.5


Date Coupon Acq




Eff Dur

B6398#AD3 Aliaxis SA 07/23/2025 4.260 % 4.26 % $450,000 $450,000 $456,633 07/01/2015 NR NR BBB- 2 Private 6.9

04774#AA0 Atlanta Falcons Stadium 09/01/2042 3.590 3.59 315,000 315,000 285,125 08/05/2016 NR NR BBB 2FE Private 10.2

04774#AB8 Atlanta Falcons Stadium 09/01/2042 3.590 3.59 225,000 225,000 203,661 08/05/2016 NR NR BBB 2FE Private 10.2

05279#AG4 Autoliv 04/23/2024 4.090 4.09 300,000 300,000 316,173 03/12/2014 NR NR A- 1 Private 6.0

099514A*2 Boral Limited 05/09/2017 5.520 3.77 500,000 500,901 501,970 10/29/2013 NR NR BBB 2 Private 0.1

G1591#AS1 Britvic Plc 02/20/2024 4.090 4.09 500,000 500,000 515,135 11/19/2013 NR NR BBB 2 Private 5.9

12680@AG5 Cabela's Inc 12/03/2022 3.820 3.82 450,000 450,000 461,534 06/08/2015 NR NR BBB 2 Private 5.0

12542RJ*2 CHS Inc 01/25/2023 4.390 4.39 1,000,000 1,000,000 1,064,430 12/17/2015 NR NR BBB+ 2 Private 5.1

Q2759@AC3 Consolidated Press Holdings 06/18/2027 4.640 4.64 500,000 500,000 522,735 05/20/2015 NR NR BBB 2FE Private 8.0

K3752#AG3 Copenhagen Airports 08/22/2023 4.010 4.01 450,000 450,000 463,388 06/06/2013 NR NR BBB 2 Private 5.6

224044CE5 Cox Communications Inc 02/01/2025 3.850 3.87 500,000 499,341 498,463 12/01/2014 Baa2 BBB BBB 2FE 144A 6.6

22576CE#4 Crescent Point Energy Corp 06/12/2023 3.780 3.78 150,000 150,000 151,218 05/23/2013 NR NR BBB- 2 Private 5.4

12656*AG7 CSL Limited 03/26/2023 3.200 3.20 560,000 560,000 565,051 03/05/2013 NR NR A- 1 Private 5.4




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Industrial 3.96% $16,742,522 $16,742,764 $17,014,161 6.5


Date Coupon Acq




Eff Dur

12674@AA6 CVS Health Corp 08/10/2035 4.016 4.05 178,176 178,176 178,070 05/17/2013 NR NR BBB+ 2 Private 7.8

12665VAA0CVS Pass-Through Trust Series

201408/11/2036 4.163 4.20 231,048 231,048 230,708 07/14/2014 Baa1 BBB+ BBB+ 2FE 144A 8.1

G2615@AB0 DCC PLC 04/25/2023 4.040 4.04 500,000 500,000 517,060 02/28/2013 NR NR BBB 2 Private 5.3

Q3300*AB9 DuluxGroup Pty Limited 09/18/2024 4.130 4.13 150,000 150,000 154,188 06/18/2014 NR NR BBB 2 Private 6.4

29252BAA7 Enbridge Southern Lights 06/30/2040 3.980 3.98 447,577 447,577 441,409 07/25/2014 NR NR BBB 1 Private 7.5

30571#AA0 Fairview Health Services 11/15/2043 4.160 4.16 961,289 961,289 984,581 07/23/2015 NR NR A 1 Private 9.6

Q3915*AC4 Fletcher Building Ltd 07/20/2026 3.700 3.70 250,000 250,000 244,410 04/27/2016 NR NR BBB 2 Private 7.7

Q3917#AB0FLINDERS PORT HOLDINGS

PTY LTD09/18/2026 4.270 4.27 175,000 175,000 178,624 06/12/2014 NR NR BBB 2FE Private 7.7

34487#AD9Football Club Term Notes

2029 Trust10/20/2029 3.970 3.99 650,000 650,000 660,036 09/24/2014 NR NR A- 1FE Private 9.7

30288*AA8 Freeport LNG 03/31/2038 4.540 4.54 1,000,000 1,000,000 1,020,100 11/16/2016 NR NR BBB 2FE Private 9.2

Q4557*AB7 Healthscope Limited 05/23/2026 4.050 4.05 200,000 200,000 201,324 03/22/2016 NR NR BBB 2FE Private 7.5

45672BA*8 Informa plc 10/16/2022 3.840 3.84 375,000 375,000 382,016 07/16/2015 NR NR BBB- 2 Private 4.9

48121@AC5 JRD Holdings LLC 03/27/2021 3.470 3.47 160,000 160,000 163,155 03/19/2014 NR NR BBB- 2FE Private 2.4

G5222#AE0 Keller Group plc 12/16/2024 4.170 4.17 275,000 275,000 282,840 09/19/2014 NR NR BBB 2 Private 6.5

497266B*6 Kirby Corp 02/27/2023 3.290 3.29 250,000 250,000 248,768 11/14/2012 NR NR BBB 2 Private 5.3

G6164#AC2 MITIE Group plc 12/16/2022 3.850 3.85 500,000 500,000 518,200 11/14/2012 NR NR BBB+ 2 Private 5.1




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Industrial 3.96% $16,742,522 $16,742,764 $17,014,161 6.5


Date Coupon Acq




Eff Dur

Q6646*AA7New Terminal Financing

Company Pty Ltd09/14/2025 3.730 3.73 125,000 125,000 123,781 05/05/2015 NR NR BBB 2 Private 7.2

Q6518#AA8 NSW Ports 04/29/2025 3.340 3.34 100,000 100,000 96,741 03/19/2015 NR NR BBB 2 Private 6.9

Q6518#AE0 NSW Ports 11/04/2028 3.860 3.86 220,000 220,000 212,914 10/14/2015 NR NR BBB 2 Private 9.0

N6704@AK5 Oiltanking GMBH 10/23/2022 3.970 3.97 500,000 500,000 517,125 10/05/2012 NR NR BBB 2 Private 4.9

G7815@AG6 SAP AG 11/15/2022 3.180 3.18 1,000,000 1,000,000 1,014,790 11/02/2012 NR NR A 1 Private 5.1

82894*AY3Simplot (JR) Company Senior

Notes02/19/2031 4.210 4.21 500,000 500,000 490,780 01/29/2016 NR NR BBB 2 Private 10.3

85915#AF8 Stericycle Inc 12/12/2019 2.680 2.68 250,000 250,000 252,185 09/28/2012 NR NR BBB+ 1 Private 2.6

G8967#AM5Triton Container International

Limited10/31/2022 4.280 4.28 428,571 428,571 445,971 10/04/2012 NR NR BBB- 2FE Private 2.9

G8967#AN3Triton Container International


90272*AA0United Healthcare Services

Inc05/15/2033 3.500 3.53 225,571 225,571 221,477 05/01/2013 NR NR A- 1 Private 7.7

91845#AA2 Verizon Communications Inc 05/15/2035 3.812 3.84 240,290 240,290 234,264 04/29/2015 NR NR BBB+ 2 Private 8.5

97786#AJ1 Wolseley PLC 09/01/2022 3.430 3.43 450,000 450,000 457,763 06/04/2015 NR NR BBB+ 2FE Private 4.9




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Utility 3.77% $4,726,472 $4,726,472 $4,706,692 7.9


Date Coupon Acq




Eff Dur

018522H#2 ALLETE Inc 09/15/2021 3.020 % 3.02 % $500,000 $500,000 $507,355 06/06/2014 NR NR A 1 Private 4.1

G0369@AV8Anglian Water Services


03842*AE6 Aqua Pennsylvania 12/01/2041 3.790 3.79 500,000 500,000 462,665 10/23/2012 NR NR A+ 1 Private 15.1

048303E*8 Atlantic City Electric Co 12/01/2025 3.500 3.50 500,000 500,000 499,595 11/19/2015 NR NR A- 1 Private 7.3

28501*AT2Electric Transmission Texas

LLC11/19/2025 3.600 3.60 100,000 100,000 99,602 05/24/2013 NR NR BBB+ 2 Private 7.2

96930*AA1 FirstEnergy Corp 06/15/2025 3.720 3.75 276,472 276,472 281,122 05/21/2015 NR NR BBB- 2 Private 3.8

P4368#AC1 FortisTCI Limited 05/02/2031 5.140 5.14 500,000 500,000 541,960 03/16/2016 NR NR BBB- 2 Private 7.2

39121JB@8 Great River Energy 10/01/2035 4.110 4.11 500,000 500,000 500,470 11/05/2014 NR NR A- 1 Private 10.9

73020*AD5 PNG Companies LLC 12/19/2017 2.430 2.43 350,000 350,000 351,008 11/07/2013 NR NR BBB- 2 Private 0.7

Q3629#AN3 SA Power Networks Gtd 08/10/2031 3.310 3.31 1,000,000 1,000,000 920,970 05/09/2016 NR NR A- 1 Private 11.1




25

Advantus Update

26

Advantus Update

• $37.6 billion in total assets under management as of 3/31/17

• Strong 2016 sales with $2+ billion in new assets

• Total Return Fixed Income team launched the Strategic Credit Income strategy

• Invitations have been sent for 2017 Advantus Investment Meeting – June 14-16

27

$10

$15

$20

$25

$30

$35

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Focus On Institutional InvestorsResults in deep understanding of client needs

Market Value Assets Under Management as of 3/31/17. *Commercial Mortgage Lending is not an advisory service and does not involve securities investing.

By Security Class

Types of Clients

Total Assets: $37.6B

• Insurance Companies• Public and Corporate Retirement Funds• Public and Corporate Operating Funds• Endowments/Foundations• Retail Funds

Public Fixed Income $21.3B

Private Placement Fixed Income $3.8B

Specialty Equity $8.6B

Commercial Mortgage Loans* $3.2B

Alternatives $700 M

28

Appendix

29

Professional Experience Degrees and Designations

Bob Diedrich, CFAVice President & Lead Portfolio Manager, Insurance Advisory

Bob manages portfolios for Insurance Advisory clients and serves as the Lead Portfolio Manager of Advantus’ insurance asset management team. His responsibilities include developing investment strategies, selecting securities and sector allocations, buy/sell decisions, credit reviews and performance management. Bob brings a breadth of experience that benefits his clients and the investment team overall, including previous work in private placements and asset/liability and asset allocation analysis for insurance accounts. His experience in the nuclear power arena – in the U.S. Navy and private industry - has contributed to Advantus’ energy sector analysis, as well.

Bob is a CFA Charterholder and a member of the CFA Institute and CFA Society of Minnesota. Bob also serves on the investment committee of a Minnesota based foundation.

– Advantus Capital Management Senior Portfolio ManagerInvestment AnalystQuantitative AnalystRelationship Manager

– Active in the investment industry since 2000

– Bachelor of Science in Finance Excelsior College

– Chartered Financial Analyst

3358530

Professional Experience Degrees and Designations

Linda SauberVice President and Director Client Service

Linda leads client service at Advantus and is involved in client portfolio management. She oversees the client service organization, client reporting and long-term success of client relationships. She also chairs the Advantus Investment Meeting, an educational conference for our clients, focused on investment themes and issues of the day. Linda has focused on fixed income investments throughout her career, having held positions in fixed income trading, portfolio management and client service.

– FAF Advisors Inc. (U.S. Bancorp)Senior Portfolio Manager

– Advantus Capital ManagementSenior Fixed Income TraderPortfolio Management Assistant

– Active in the investment industry since 1984

– Master of Business Administration University of St. Thomas

– Bachelor of Arts in Finance and EconomicsAugsburg College

3362431

Western Fraternal Life AssocMarch 31, 2017

Client HoldingsOriginal

Investment

Current

Balance

Name % of

Ownership

# of Loans Duration Coupon Maturity

$919,062.20 $915,382.99 ICA 2016

Investment

Period III

4.06% 14 0.00 4.40% 2/1/2032

$312,970.00 $312,970.00 ICA 2016

Investment

Period IV

5.26% 3 0.00 4.99% 3/1/2032

Total Original

Investment

Total Current

Balance

Total # of Loans Average Loan

Exposure

Average Duration Average Coupon

$1,232,032.20 $1,228,352.99 17 $72,256.06 0.00 4.55%

Five Largest Exposures Loan

$131,500.00 Fletcher Office Building

$118,350.00 International Plaza

$115,863.49 Woodland Center

$106,795.91 Anderson Shops

$88,305.00 Sauk Trail Plaza

Restructured Loan

0

No Restructured Loans

Days Delinquent Loan

0 No Delinquencies

Documents

Join from PC, Mac, Linux, iOS or Android: ... April 2017.pdf · Join from PC, Mac, Linux, iOS or Android: . Or iPhone one-tap (US Toll): +14086380968,674342182# or +16465588656,674342182#