BENCHMARK DEFINITIONS

Page 21 Benchmark Name Benchmark Description

HFRI Event Driven (Total) Investment Managers who maintain positions in companies currently or prospectively involved in corporate transactions of a wide variety including but not limited to mergers, restructurings, financial distress, tender offers, shareholder buybacks, debt exchanges, security issuance or other capital structure adjustments. Security types can range from most senior in the capital structure to most junior or subordinated, and frequently involve additional derivative securities. Event Driven exposure includes a combination of sensitivities to equity markets, credit markets and idiosyncratic, company specific developments. Investment theses are typically predicated on fundamental characteristics (as opposed to quantitative), with the realization of the thesis predicated on a specific development exogenous to the existing capital structure.

HFRI FOF: Strategic Classified as "Strategic" exhibit one or more of the following characteristics: seeks superior returns by primarily investing in funds that generally engage in more opportunistic strategies such as Emerging Markets, Sector specific, and Equity Hedge; exhibits a greater dispersion of returns and higher volatility compared to the HFRI Fund of Funds Composite Index. A fund in the HFRI FOF Strategic Index tends to outperform the HFRI Fund of Fund Composite Index in up markets and underperform the index in down markets.

HFRI Fund of Funds Composite Unmanaged index that measures the performance of managers who invest with multiple managers through funds or managed accounts. An investment cannot be made directly in an index.

HFRI Macro (Total) Investment Managers which trade a broad range of strategies in which the investment process is predicated on movements in underlying economic variables and the impact these have on equity, fixed income, hard currency and commodity markets. Managers employ a variety of techniques, both discretionary and systematic analysis, combinations of top down and bottom up theses, quantitative and fundamental approaches and long and short term holding periods. Although some strategies employ RV techniques, Macro strategies are distinct from RV strategies in that the primary investment thesis is predicated on predicted or future movements in the underlying instruments, rather than realization of a valuation discrepancy between securities. In a similar way, while both Macro and equity hedge managers may hold equity securities, the overriding investment thesis is predicated on the impact movements in underlying macroeconomic variables may have on security prices, as opposed to EH, in which the fundamental characteristics of the company are the most significant and integral to investment thesis.

Page 22 Benchmark Name Benchmark Description

HFRI Relative Value (Total) Unmanaged index that is comprised of investment managers who maintain positions in which the investment thesis is predicated on realization of a valuation discrepancy in the relationship between multiple securities. Managers employ a variety of fundamental and quantitative techniques to establish investment theses, and security types range broadly across equity, fixed income, derivative or other security types. Fixed income strategies are typically quantitatively driven to measure the existing relationship between instruments and, in some cases, identify attractive positions in which the risk adjusted spread between these instruments represents an attractive opportunity for the investment manager. Relative Value is further subdivided into 8 sub-strategies: Asset Backed, Convertible Arbitrage, Corporate, Sovereign, Volatility, Yield Alternatives-Energy Infrastructure, Yield Alternatives-Real Estate, and Multi-Strategy. An investment cannot be made directly in an index.

HFRI RV: Fixed Income --- Convertible Arbitrage

Includes strategies in which the investment thesis is predicated on realization of a spread between related instruments in which one or multiple components of the spread is a convertible fixed income instrument. Strategies employ an investment process designed to isolate attractive opportunities between the price of a convertible security and the price of a non-convertible security, typically of the same issuer. Convertible arbitrage positions maintain characteristic sensitivities to credit quality the issuer, implied and realized volatility of the underlying instruments, levels of interest rates and the valuation of the issuer's equity, among other more general market and idiosyncratic sensitivities.

HFRI RV: Fixed Income --- Corporate Fixed Income --- Corporate includes strategies in which the investment thesis is predicated on realization of a spread between related instruments in which one or multiple components of the spread is a corporate fixed income instrument. Strategies employ an investment process designed to isolate attractive opportunities between a variety of fixed income instruments, typically realizing an attractive spread between multiple corporate bonds or between a corporate and risk free government bond. Fixed Income - Corporate strategies differ from Event Driven: Credit Arbitrage in that the former more

typically involve more general market hedges which may vary in the degree to which they limit fixed income market exposure, while the latter typically involve arbitrage positions with little or no net credit market exposure, but are predicated on specific, anticipated idiosyncratic developments.

HFRX EH: Energy/Basic Materials Employ investment processes designed to identify opportunities in securities in specific niche areas of the market in which the Manager maintains a level of expertise which exceeds that of a market generalist in identifying companies engaged in the production & procurement of inputs to industrial processes. Strategies are sensitive to the direction of price trends as determined by shifts in supply and demand factors, and implicitly sensitive to the direction of broader economic trends. Energy/Basic Materials strategies typically maintain a primary focus in this area and expect to maintain in excess of 50% of portfolio exposure to these sectors over a various market cycles.

BENCHMARK DEFINITIONS

Page 23 Benchmark Name Benchmark Description

HFRX Event Driven Event Driven Managers maintain positions in companies currently or prospectively involved in corporate transactions of a wide variety including but not limited to mergers, restructurings, financial distress, tender offers, shareholder buybacks, debt exchanges, security issuance or other capital structure adjustments. Security types can range from most senior in the capital structure to most junior or subordinated, and frequently involve additional derivative securities. Event Driven exposure includes a combination of sensitivities to equity markets, credit markets and idiosyncratic, company specific developments. Investment theses are typically predicated on fundamental characteristics (as opposed to quantitative), with the realization of the thesis predicated on a specific development exogenous to the existing capital structure.

HFRX Global Hedge Fund Unmanaged index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies; including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry.

iBoxx $ Liquid High Yield Corporate Bond Unmanaged index that seeks to track the investment results of an index composed of US dollar-denominated, high yield corporate bonds.

Inverse FRB Trade Weighted Dollar Total Return

The inverse of the broad index is the reversed return of the weighted average of the foreign exchange values of the US dollar against the currencies of a large group of major US trading partners. The index weights, which change over time, are derived from US export shares and from US and foreign import shares.

JP Morgan Global Govt Bond Ex-US The index measures the performance of non-US government bonds.

JPMorgan GBI-EM Global Diversified Unmanaged comprehensive emerging market debt index that tracks local currency bonds issued by Emerging Market governments. Launched in June 2005 and is the first comprehensive global local Emerging Markets index. As Emerging Market governments look increasingly toward their domestic market for sources of finance, investors are looking more closely at local markets in search for higher yield and greater diversification.

Merrill Lynch US Convertibles Investment Grade

Unmanaged index consists of convertible bonds traded in the US dollar denominated investment grade convertible securities sold into the US market and publicly traded in the United States. The Index constituents are market value weighted based on the convertible securities prices and outstanding shares, and the underlying index is rebalanced daily.

BENCHMARK DEFINITIONS

Page 24 Benchmark Name Benchmark Description

Mexican Bolsa Unmanaged index that is a capitalization weighted index of the leading stocks traded on the Mexican Stock Exchange. The index was developed with a base level of .78 as of

October 30, 1978.

ML Mortgage Master Merrill Lynch (ML) Mortgage Master Index tracks the performance of US dollar denominated fixed rate and hybrid residential mortgage pass-through securities publicly issued by US agencies in the US domestic market. 30-Yr, 20-Yr, 15-Yr and interest-only fixed rate mortgage pools are included in the Index provided they have at least one year remaining term to final maturity and a minimum amount outstanding of at least $5 billion per generic coupon and $250 million per production year within each generic coupon. An investment cannot be made directly in an index.

MSCI AC Asia MSCI All Country Asia Excluding-Japan Index represents a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of Asia. As of January 2009 the MSCI AC Asia ex Japan Index consisted of the following 10 developed and emerging market country indices: China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand. An investment cannot be made directly in an index.

MSCI AC Asia ex Japan MSCI All Country Asia Excluding-Japan Index represents a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of Asia, excluding Japan. As of January 2009 the MSCI AC Asia ex Japan Index consisted of the following 10 developed and emerging market country indices: China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand. An investment cannot be made directly in an index.

MSCI AC Pacific Unmanaged index that is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed and emerging markets in the Pacific region.

The MSCI AC Pacific Free Index consists of the following 12 developed and emerging market countries:

Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand.

BENCHMARK DEFINITIONS

Page 25 Benchmark Name Benchmark Description

MSCI AC World MSCI All Country World Index represents a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. As of June 2009 the MSCI ACWI consisted of 45 country indices comprising 23 developed and 22 emerging market country indices. The developed market country indices included are: Australia, Austria, Belgium,

Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indices included are: Brazil, Chile, China, Colombia, Czech

Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. An investment cannot be made directly in an index.

MSCI AC World ex USA Unmanaged index that measures the performance of global equity markets, excluding the United States.

MSCI All Countries Europe Unmanaged index that captures large and mid cap representation across 15 Developed Markets countries and 6 Emerging Markets countries in Europe. With 519 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. DM countries in Europe include: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the UK. EM countries in Europe include: Czech Republic, Greece, Hungary, Poland, Russia and Turkey.

MSCI Brazil Unmanaged index that is designed to measure the performance of the large and mid cap segments of the Brazilian market. With 75 constituents, the index covers about 85% of the Brazilian equity universe.

MSCI Canada Unmanaged index that is designed to measure the performance of the large and mid cap segments of the Canada market. With 95 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Canada.

MSCI China Unmanaged index that captures large and mid cap representation across China H shares, B shares, Red chips and P chips. With 141 constituents, the index covers about 85% of this China equity universe.

MSCI EAFE MSCI Europe, Australasia, and Far East (EAFE) Index represents a free float-adjusted market

capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. As of May 27, 2010 the MSCI EAFE Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. An investment cannot be made directly in an index.

BENCHMARK DEFINITIONS

Page 26 Benchmark Name Benchmark Description

MSCI EAFE ex Japan MSCI Europe, Australasia, and Far East (EAFE) Index represents a free float-adjusted market

capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. As of May 27, 2010 the MSCI EAFE Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. An investment cannot be made directly in an index.

MSCI EAFE Growth MSCI Europe, Australasia, and Far East (EAFE) Growth Index Represents the growth portion of the MSCI EAFE index. Price/Book Value ratios divide the MSCI country indices into two sub-indices: value and growth. All securities are classified as either value (low P/BV) or growth (high P/BV) relative to each MSCI country index in this manner, the definition of growth is relative to each individual market as represented by the MSCI index. Country growth indices are aggregated into regional growth indices. An investment cannot be made directly in an index.

MSCI EAFE High Dividend Yield Unmanaged index based on MSCI EAFE, its parent index, and includes large and mid cap representation across Developed Markets countries around the world, excluding the US and Canada. The index is designed to reflect the performance of equities in the parent index (excluding REITs) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent. The index also applies quality screens and reviews 12-month past performance to omit stocks with potentially deteriorating fundamentals that could force them to cut or reduce dividends.

MSCI EAFE Small Cap Represents a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets small cap stocks, excluding the US & Canada. As of May 27, 2010 the MSCI EAFE Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

MSCI EAFE Value MSCI Europe, Australasia, and Far East (EAFE) Value Index represents the value portion of the MSCI EAFE index. Price/Book Value ratios divide the MSCI country indices into two sub-indices: value and growth. All securities are classified as either value (low P/BV) or growth (high P/BV) relative to each MSCI country index In this manner, the definition of value is relative to each individual market as represented by the MSCI index. Country value indices are aggregated into regional value indices. An investment cannot be made directly in an index.

BENCHMARK DEFINITIONS

Page 27 Benchmark Name Benchmark Description

MSCI EM Asia MSCI Emerging Markets Asia Index represents the Asian sub-set of the MSCI Emerging Markets index. It includes the following 8 countries: China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan and Thailand. An investment cannot be made directly in an index.

MSCI EM Leveraged Represents the MSCI EM Index's excess return over the 3 month LIBOR rate leveraged 2 times

MSCI Emerging Markets Unmanaged index that is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

MSCI Emerging Markets Europe/Middle East

The MSCI Emerging Markets EMEA Index captures large and mid cap representation across 8 Emerging Markets (EM) countries* in Europe, the Middle East and Africa (EMEA). With 160 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

MSCI Emerging Markets ex Asia MSCI Emerging Markets Excluding --- Asia Index represents the Asian sub-set of the MSCI Emerging Markets index. It includes the following 15 countries: Argentina, Brazil, Chile, Colombia, Czech Republic, Egypt, Hungary, Israel, Mexico, Morocco, Peru, Poland, Russia, South Africa, and Turkey. An investment cannot be made directly in an index.

MSCI Emerging Markets Latin America The MSCI Emerging Markets (EM) Latin America Index captures large and mid cap representation across 5 Emerging Markets (EM) countries* in Latin America. With 140 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

MSCI Emerging Markets Small Cap The MSCI Emerging Markets Small Cap Index includes small cap representation across 23 Emerging Markets countries*. With 1,802 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country. The small cap segment tends to capture more local economic and sector characteristics relative to larger Emerging Markets capitalization segments.

MSCI Europe MSCI Regional Indices are market capitalization weighted equity indices of stocks traded in the markets of the representative countries in the particular index. Please refer to the MSCI Barra website for countries included in each region. An investment cannot be made directly in an index.

MSCI Europe Value MSCI Regional Indices are market capitalization weighted equity indices of stocks traded in the markets of the representative countries in the particular index. Please refer to the MSCI Barra website for countries included in each region. An investment cannot be made directly in an index.

MSCI Euro-Zone (EMU) The MSCI EMU Index (European Economic and Monetary Union) captures large and mid cap representation across the 10 Developed Markets countries in the EMU*. With 238 constituents, the index covers approximately 85% of the free float-adjusted market capitalization of the EMU.

BENCHMARK DEFINITIONS

Page 28 Benchmark Name Benchmark Description

MSCI Far East The MSCI Far East Index captures large and mid cap representation across 3 Developed Markets (DM) countries*. With 380 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

MSCI Frontier Markets The MSCI Frontier Markets Index captures large and mid cap representation across 24 Frontier Markets (FM) countries*. The index includes 127 constituents, covering about 85% of the free float-adjusted market capitalization in each country.

MSCI Germany MSCI Regional Indices are market capitalization weighted equity indices of stocks traded in the markets of the representative countries in the particular index. Please refer to the MSCI Barra website for countries included in each region. An investment cannot be made directly in an index.

MSCI Golden Dragon MSCI Regional Indices are market capitalization weighted equity indices of stocks traded in the markets of the representative countries in the particular index. Please refer to the MSCI Barra website for

In document BENCHMARK DEFINITIONS (Page 21-36)