ASSET CLASS CONTRIBUTION

Domestic Equity Composite

COMPOSITE RETURN: -18.5%

BENCHMARK RETURN: -19.5%

RELATIVE PERFORMANCE:

+1.0%

• The Domestic Equity Composite delivered positive relative returns during 2022. This composite is made up of large, mid, and small cap managers representing growth and value styles, and with active and passive management

• The best performance within the Domestic Equity Composite was delivered by large and small capitalization, quality-oriented investment managers.

ACTUAL % OF PORTFOLIO: 24.7%

International Equity Composite

Global Equity Composite

COMPOSITE RETURN: -30.1%

BENCHMARK RETURN: -18.4%

RELATIVE PERFORMANCE:

-11.7%

• The Global Composite delivered the worst absolute and relative portfolio performance as opposed to 2021 where it was the leader.

• Within the asset class, the poorer performance came from the global managers exposure to growth-oriented investments that did poorly during the higher interest rate and inflationary environment for 2022.

ACTUAL % OF PORTFOLIO: 4.9%

Private Equity Composite

BENCHMARK RETURN: -16.0%

COMPOSITE RETURN: -19.6% -3.6% RELATIVE PERFORMANCE:

• The International Equity Composite is comprised of developed markets equities ex-US (e.g., the Eurozone and Japan), and emerging markets equities (e.g., China and Brazil).

• The International Emerging Markets Composite was 4.6% of the portfolio and brought down the returns of the international equity composite on an absolute and relative basis. The International Emerging Markets Composite returned -23.3%, versus the benchmark at -20.1%.

ACTUAL % OF PORTFOLIO: 16.6%

Total Fixed Income Composite

COMPOSITE RETURN: -14.5%

BENCHMARK RETURN: -13.0%*

-1.5% RELATIVE PERFORMANCE:

• The Fixed Income Composite is intended to reduce the impact on the portfolio when riskier assets (i.e., equities) decline. The Composite consists of fixed income securities and a small cash position.

• Within the Composite, Domestic Fixed Income was 9.9% of the portfolio and returned -14.9% during 2022. Global Fixed Income was 3.7% of the portfolio and returned -14.0%.

* Benchmark return is the Bloomberg Barclays Aggregate Index.

ACTUAL % OF PORTFOLIO: 13.6%

Real Assets Composite

COMPOSITE RETURN: -2.8%

COMPOSITE RETURN: +8.8% +4.4%

BENCHMARK RETURN: +4.4%

RELATIVE PERFORMANCE:

• Private equity consists of the equities of companies that are not listed on any stock exchanges. These companies may be in early stages of development (often referred to as venture) or in more mature stages (often referred to as buyouts and special situations).

• Private equity requires long-term commitments by investors. In return for the illiquidity, investors have the potential to receive superior future investment returns.

ACTUAL % OF PORTFOLIO: 19.8%

Hedge Funds Composite

COMPOSITE RETURN: -3.1% +2.1%

BENCHMARK RETURN: -5.2%

RELATIVE PERFORMANCE:

• Hedge funds offer differentiated return streams in contrast to traditional stocks and bonds. These strategies can be complex in nature or structure, but they provide returns that add diversification for a portfolio of investments.

• An example of a hedge fund strategy would be Relative Value. In this strategy, an investment manager might make investments in stocks, bonds, convertibles, or derivatives to gain exposure to that investment type. The manager may also make a hedging investment in the same security to capture the value held within the security relative to its current market price, thus capturing the price differential.

ACTUAL % OF PORTFOLIO: 8.4%

BENCHMARK RETURN: +1.7%*

RELATIVE PERFORMANCE:

-4.5%

• Real assets tend to perform well when inflation rises. Therefore, real assets are in the portfolio for inflation protection. Examples of real assets are timber, real estate, infrastructure, and natural resources.

• Despite overall negative returns, many underlying strategies within real assets performed well for the portfolio. Private Real Assets, which make up 7.3% of the total portfolio, provided a return of 11.3% for 2022. The inflationary characteristics of real estate, timber, infrastructure, and natural resources performed well when inflation was high during 2022.

* Benchmark return is weighted between three indices: NCREIF NFI ODCE, Mercer Illiquid Natural Resources Index, and S&P Global Property Index.

ACTUAL % OF PORTFOLIO: 12.0%