PERFORMANCE MEASUREMENT

Performance Benchmark Ing

Long-term investment returns will be evaluated against various benchmarks over a full market cycle (for measurement purposes: 5 years).

Primar Y Objective

The primary objective of the Portfolio is to achieve a total return, net of fees, in excess of spending, administrative fees, and inflation. The Primary Benchmark is the minimum return needed to achieve the portfolio’s long-term investment objectives.

Total Return greater than Consumer Price Index + 4.0% + 1.2%

Broad Policy Benchmark

A secondary objective is to achieve a total return in excess of the Broad Policy Benchmark, comprised of each broad asset class benchmark weighted by its long-term strategic allocation. The Broad Policy Benchmark is comprised of mutually exclusive broad market asset class indices to measure broad policy decisions. The Broad Policy Benchmark will be something akin to (current actual target weighted benchmark is detailed in the appendix):

Another investment objective is to achieve a total return in excess of the Target Weighted Benchmark, comprised of each asset category benchmark weighted by its target allocation. The Investment Advisor, at its discretion, is responsible for updating the Target Weighted Benchmark to coincide with any changes to strategic targets (see Appendix).