Advantages. Considerations BOUTIQUE MANAGER WITH A SINGLE PORTFOLIO

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2 Agenda FEG and Russell Investments introductions OCIO partnership options Industry trends and the growth of OCIO Choosing the right partnership Resources Q&A About our firms

3 BOUTIQUE MANAGER WITH A SINGLE PORTFOLIO Advantages Considerations High touch customer service One investment philosophy and solution Single business focus Open architecture Dedicated portfolio oversight and risk teams Consolidated reporting Key person risk Limited or no ability to customize Capacity, liquidity, and redemption constraints Manager research, custody, transitions, etc. typically outsourced All your assets or none Fully delegated model Portfolio of one For illustrative purposes only. Not meant to represent any actual investment or performance. Russell Investments

4 DYNAMICALLY MANAGED COMMINGLED FUNDS AND SEPARATE ACCOUNTS Strategic advice, plus portfolio construction and daily management Risk and return managed at the total portfolio level Active and passive solution Ability to prioritize where you spend your fee budget Dynamic management to capture short term opportunities and mitigate risks Dynamically managed commingled funds & separate accounts For illustrative purposes only. Not meant to represent any actual investment or performance. Russell Investments Full complement of administrative services

5 WHAT IS DYNAMIC PORTFOLIO MANAGEMENT The portfolio manager is responsible for adjusting the portfolio exposures, in real time, X X X X X based on market expectations, to pursue additional returns and mitigate risks. For illustrative purposes only. Not meant to represent any actual investment or performance. Russell Investments O O O O O O

6 WHY DYNAMIC PORTFOLIO MANAGEMENT Dynamic management is designed to allow you to diversify return sources, capitalize on market opportunities, and mitigate risks. Certain managers have performed better in certain market environments and value can be added or lost based on the timing, or exit, of a manager allocation..35% per annum in missed opportunities or transaction costs Source: How non-profits can improve upon the endowment model and make it work for them, Mary Beth Lato, Russell Investments, Russell Investments Re-allocating 8% from bonds to equity to maintain expected return

7 WHAT SERVICES DOES RUSSELL INVESTMENTS OCIO RELATIONSHIP INCLUDE? Russell Investments integrates strategic advice + asset management + implementation + administration STRATEGIC ADVICE ASSET MANAGEMENT ADMINISTRATION Objective setting Portfolio structure and construction Performance measurement / analysis** Manager research, selection, monitoring and contracting Custody** Governance and fiduciary framework and structure Asset allocation Risk & Financial modeling Spending Policy review Underlying investment manager fees1 Investment policy review / update Operational due diligence Capital markets research New investment strategies, analysis and education Fund reporting Online accounting and performance statements OTHER VALUE-ADDED SERVICES Dedicated client team Comprehensive client service Quarterly review meetings Form 990 assistance Risk, liquidity and spending reports Risk management Audit assistance ClientLINK website Fund operations Cash securitization Donor securities gift processing* Client conferences and educational events Transition management within Russell Investments managed funds Donor accounting and planned giving administration* Dynamic asset allocation * Additional administration fees will apply. ** If Russell Investments is asked to report on non-russell Investments assets, additional custody and performance reporting fees will apply. 1 Excludes Russell Investments Managed Hedge Funds and Private Capital Funds Accounts. Russell Investments

8 TYPES OF SERVICE PROVIDERS BREADTH OF OCIO PROVIDERS Small asset managers Fund Evaluation Group, LLC Boutique OCIO Firms Large multi-asset class money management firms Confidential Not for Redistribution

9 COMMON OCIO MODELS SINGLE PORTFOLIO One size fits all ASSET CLASS SLEEVES SEPARATELY MANAGED ACCOUNT Customization at the asset allocation level Customization at the Asset Allocation and Manager Level Client ability to customize portfolio Fund Evaluation Group, LLC Confidential Not for Redistribution

10 CONSIDERATIONS PROVIDERS Investment Capabilities Fund Evaluation Group, LLC MODELS Experience Level of involvement and discretion Risk Analytics Frequency of meetings Resources Enterprise Considerations Scale Architecture Fees Fees Confidential Not for Redistribution

11 FEG OCIO: DEDICATED CLIENT TEAM FEG assigns OCIO Advisors to each client who, along with broader support teams, function like an in-house investment office. On the investment side, OCIO Advisors work with 7 dedicated internal Portfolio Managers, who offer advice on asset allocation and the current market environment. The Portfolio Management Team leverages the support of FEG s 23-person Research Team, which provides manager selection and capital market insights. On the client service side, FEG OCIO Advisors work with a team of 9 client services and operations professionals to address day-to-day operational and administrative needs (i.e., trading, rebalancing, inflows, outflows). CLIENT Dedicated OCIO Team Research Team OCIO ADVISORS (2) Fund Evaluation Group, LLC PORTFOLIO MANAGEMENT (7) CLIENT SERVICE (4) RESEARCH (23) OPERATIONS (5) Confidential Not for Redistribution

12 IN-HOUSE RESEARCH TEAM CIO, HEAD OF RESEARCH Gregory M. Dowling, CFA, CAIA Research Team INVESTMENT POLICY COMMITTEE (IPC) Avg. Industry Experience: 19 years Consultant Liaisons Gregory M. Dowling, CFA, CAIA / Managing Principal / CIO & Head of Research Michael J. Oyster, CFA / Managing Principal / Chief Investment Strategist Nolan M. Bean, CFA, CAIA / Managing Principal / Head of Institutional Investments Supporting Committees ASSET & RISK ALLOCATION TEAM CAPITAL MARKETS & RISK Gregory D. Houser, CFA, CAIA / Senior Vice President Mark A. Koenig, CFA / Director of Quantitative Analysis ENTERPRISE RISK COMMITTEE Global Equity Public Avg. Industry Experience: 11 years Global Equity Private Avg. Industry Experience: 15 years Global Fixed Income & Credit Avg. Industry Experience: 14 years Real Assets Avg. Industry Experience: 15 years Diversifying Strategies Avg. Industry Experience: 13 years Brian A. Hooper / Vice President Cheryl A. Barker / Senior Research Analyst Steven G. Thieme, CFA / Senior Research Analyst Samuel A. Ragan, CFA / Research Analyst Nathan C. Werner, CFA, CAIA / Senior Vice President / Director of Private Equity G. Scott Tabor, CAIA / Senior Vice President Charles W. Luecke/ Senior Research Analyst Lauren Mayernik / Research Analyst Keith M. Berlin / Senior Vice President / Director of Global Fixed Income and Credit Jeremy M. Albers, CFA, CAIA / Research Analyst Kevin C. Dee / Research Analyst Christian S. Busken / Senior Vice President / Director of Real Assets Matt DenBleyker, CAIA / Vice President Xavier Jimenez / Research Analyst Kevin J. Conroy, CFA, CAIA / Vice President Sean P. McChesney / Vice President Michael B. Franke, CFA / Senior Research Analyst Stephen M. Hodson, CFA, CAIA / Senior Vice President Matthew R. Veith, CFA / Senior Vice President Douglas W. Walouke, CFA / Vice President Michael A. Condon, CFA / Senior Vice President David D. Center, CFA / Senior Vice President 1 As of July 31, 2017 there are 24 members on our Research Team. Members include all individual names listed above, exempting the consulting liaisons, as well as two additional team members dedicated to Research Services. See Appendix for CFA and CAIA definitions. Fund Evaluation Group, LLC Confidential Not for Redistribution

13 UNDERSTANDING THE DIFFERENCES RESPONSIBILITY u Advisor recommends and monitors; investment committee/staff approves and implements Advisor executes and monitors; investment committee/staff notified Spending Policy Analysis IPS Development Asset Allocation Portfolio Strategy Manager Selection Security Selection Daily Supervision Trading Rebalancing CONSULTING u u u u u u u u u OCIO u u u Risk Management Performance Analysis Reporting Fund Evaluation Group, LLC Illustrative of FEG s service models. Confidential Not for Redistribution

14 DISCRETIONARY OCIO GROWTH Assets in $ Millions Number of Clients 10,903 11,018 $872,643 $883,193 9,597 $746,026 $536,591 3,530 $90, YR. CAGR* = 26% 3-YR. CAGR* = 6% Data Source: 2017 Outsource-Chief Investment Officer Buyer s Guide.*Compound annual growth rate. Fund Evaluation Group, LLC YR. CAGR* = 37% 3-YR. CAGR* = 5% Confidential Not for Redistribution

15 RFP TRENDS OCIO 70% FEG RFP VOLUME % of Total RFPs, Consulting vs. OCIO Consulting 60% 50% 40% 30% 20% 10% 0% Data Source: FEG RFP data January 1, 2009 August 7, Fund Evaluation Group, LLC Confidential Not for Redistribution

16 DRIVERS OF OCIO GROWTH Expected Real Return 14% LOW EXPECTED RETURN OF A 70/30 STOCK/BOND PORTFOLIO Long-term Average 12% 10% 8% AVERAGE FORECAST REAL RETURN 5.3% 6% 4% 2% 0% AVERAGE 2.6% Data sources: Robert Shiller and Standard & Poor s, adapted from AQR.; data as of December 31, U.S. stocks expected real return calculated from 50% of the earnings yield* plus 50% dividend yield + 1.5% to account for real earnings growth. U.S. bond yield is the government rate FEG s 10-year inflation forecast. Fund Evaluation Group, LLC Confidential Not for Redistribution

17 DRIVERS OF OCIO GROWTH Data sources: FEG, Robert Schiller and Standard & Poor's, adapted from AQR. FEG Capital Market Assumptions as of 12/31/16. FEG Capital Market Assumptions are hypothetical based on asset category. Please refer to Appendix for full disclosures. 70/30 Portfolio consists of 70% U.S. stocks and 30% U.S. bonds. U.S. stocks expected real return calculated from 50% of the earnings yield* plus 50% dividend yield + 1.5% to account for real earnings growth. U.S. bond yield is the government rate - FEG's 10year inflation forecast. Fund Evaluation Group, LLC Private Energy 10% Expected Return LOW EXPECTED RETURN OF A 70/30 STOCK/BOND PORTFOLIO 12% MLPs Private Real Private Debt Estate 8% Diversifying Strategies 6% High Yield & Global Hedged Equity 4% U.S. Inflation 2% 0% Public Real Estate Emerging Markets Int l Large Cap Developed U.S. Equity 5.3% Long-term Average Return of 70/30 Portfolio Commodities 2.6% Expected Real Return of 70/30 Portfolio Core (Investment Grade) 0% 5% 10% Private Equity 15% 20% 25% 30% 35% 40% Expected Standard Deviation Confidential Not for Redistribution

18 DRIVERS OF OCIO GROWTH Cash Hedge Funds Other Real Estate Private Capital Fixed Income 100 INCREASING COMPLEXITY OF INVESTMENT OPTIONS 80 U.S. Stocks 60 International Stocks 40 Fixed Income 20 Real Estate 1992 Private Capital Other Cash Data Source: NACUBO-Commonfund Study of Endowments. Fund Evaluation Group, LLC Hedge Funds Confidential Not for Redistribution

19 RESOURCES ARE SCARCE Private Foundations Internal staff resources are modest, and most organizations delegate fiduciary oversight to their investment committee Internal staff focused on investments Community Foundations >$500M $101 - <$101M >$500M $500M $101 $500M <$101M 2.8 FTE.4 FTE.3 FTE.6 FTE.4 FTE 1.5 FTE (median) Org. has a CIO Responsible for Investment Oversight Source: 2016 COF Commonfund Study of Investment of Endowments for Private and Community Foundations. FTE = Full time equivalent, IC = Investment committee, EL = Executive leadership Russell Investments 16% overall 10% overall 40% IC 71% IC 72% IC 42% IC 96% IC 89% IC 45% EL 8% EL 18% EL 25% EL 4% EL 0% EL

20 TIME IS A PRECIOUS RESOURCE Strategic decisions are the largest driver of returns, yet most investment committees and senior staff spend most of their time reviewing past performance Sources: Russell Investments, Vanguard. Russell Investments Investment committee and senior staff focus How your 2-3 hours per quarter SHOULD be spent to effectively drive returns How your 2-3 hours per quarter is ACTUALLY spent Strategic decisions 60% - 80% 31% Review of past performance and manager selection 10% - 30% 50% Review of dynamic portfolio management decisions Up to 20% 0% Things that are on fire Up to 5% 14% Non-investment issues Up to 5% 5%

21 PROACTIVELY MANAGING RISK IS A FULL TIME JOB Source: Confluence as of 3/31/2016. For illustrative purposes only. Russell Investments

22 PUTTING THE RIGHT DECISIONS IN THE RIGHT HANDS Strategic Design Portfolio Management Review and Control Governance Asset Class Strategy Performance Measurement and Evaluation Objective Setting Portfolio Structure Asset Allocation Manager Selection / Monitoring Execution Risk Management Source: The Non-profit Fiduciaries Handbook, Russell Investments. Russell Investments

23 YOU NEED ONE DECISION MAKER AT EACH LEVEL STRATEGIC DESIGN FIDUCIARY LEVEL Policy GOVERNING (Board and/or IC) MANAGING (IC and/or staff) OPERATING (OCIO or CIO) Source: The Non-profit Fiduciaries Handbook, Russell Investments. Russell Investments Strategy PORTFOLIO MANAGEMENT Policy management Dynamic asset allocation REVIEW & CONTROL Review and control

24 WHAT DECISIONS DO YOU NEED TO MAKE BEFORE YOU DECIDE ON A MODEL & PROVIDER? $$ Be clear about the goals you re trying to achieve For illustrative purposes only. Russell Investments Have a handle on your spending priorities Know how much liquidity you need in all environments Really understand your tolerance for risk Decide how dynamic you want to be in your approach

25 FACTORS TO CONSIDER MAINTAIN DISCRETION DELEGATE DISCRETION CONSIDERATION QUESTIONS TO ASK Governance Is your decision-making process for investing effective? Y N Investment Knowledge Does your Board and staff have demonstrated investment expertise across all investment categories? Y N Mission Would your institution benefit from the Board focusing more time and resources towards fulfilling your mission? Y N Competitive Advantages Do you have any competitive advantages when it comes to investing, such as access to unique strategies? Y N Board Preference Does your Board want to retain discretion on certain roles and responsibilities? Y N Resources Do you have a budget for dedicated investment professionals and infrastructure? Y N Time Do you have the ability to monitor the portfolio daily? Y N Fund Evaluation Group, LLC Confidential Not for Redistribution

26 WHAT TO CONSIDER IN THE RFP PROCESS 93% Experience of Top Management REASONS FOR SELECTING AN OCIO PROVIDER 78% Breadth of Capabilities / Services Offered 75% Willingness to Share Fiduciary Responsibility 73% Client Service 30% Price Reputation / Recommendation of Peers 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100% Data Source: 2017 Outsource-Chief Investment Officer Buyer s Guide. Fund Evaluation Group, LLC Confidential Not for Redistribution

27 BEST PRACTICES FOR YOUR RFP Before the RFP Make sure your entire team is clear on your goals & priorities Do your research on the models available and know which model you think you want Know which decisions you want to keep, and which to delegate Identify the skills and capabilities you need from a provider Source: Finding the right solution for you: The RFP, Russell Investments Russell Investments When you re ready Review & selection Compile your list of questions Ask each team member to independently review & rank Select a list of firms that match your needs Share additional information such as: IPS Current model, asset allocation & investments Preferences regarding delegation & decision making Why you re looking Review the rankings and pick 35 to meet in person Consider a site visit to your top 3 candidates Make your selection and notify the provider who was (and those who weren t) selected

28 Questions?

29 Speaker bios, firm information, and disclosures

30 Michael A. Condon, CFA SVP, Institutional Investments, FEG Investment professional since 1986 FEG team member since 2016 Mike brings more than 18 years of experience managing several investment offices in excess of a billion dollars as CIO at Southern Methodist University, University of Arkansas Foundation, and Georgia Tech Foundation Education: MBA in Finance, Louisiana Tech University BS in Accounting, Minor in Mathematics, University of South Alabama Memberships: CFA Institute Advisory Committee for Alternative Asset Management Editorial Committee for the Investment Institute Former Investment Committee Member at Children s Health System of Texas FEG Investment Advisory Committee 2016 Fund Evaluation Group, LLC 30 Confidential Not for Redistribution

31 ABOUT FEG F E G O C I O : managing discretionary client portfolios since 2003 Customized portfolios built around client objectives Dedicated OCIO Team supported by full resources of the larger firm FEG INSTITUTIONAL CLIENTS2 $6.8B OCIO Assets1 1 As of June 30, 2017, Assets under Advisement (AUA) include discretionary and non-discretionary assets of FEG and its affiliated entities. These assets are typically non-discretionary. For non-discretionary accounts, FEG will advise and make recommendations on investments, but does not have authority to execute or facilitate trades on behalf of the client. Some asset values may not be readily available at the most recent quarter end, therefore the previous quarter's values were used for this calculation. The values may be higher or lower, depending on the current market conditions. Of the $61bn AUA, total assets under management (AUM) are $6.8bn which are comprised of: Institutional discretionary AUM $2.6bn discretionary, Institutional non-discretionary AUM $3.7bn and Non-Institutional AUM $486mm. OCIO Assets is comprised of institutional AUM. 2Institutional clients include Corporations, Charitable Organizations, Community Foundations, Financial Entity, Healthcare, Higher Education, Independent Schools, Insurance, Private Foundations, Public Funds, Religious Organizations, and Taft Hartley that are FEG Consulting, OCIO or Hybrid clients. 3 Other is comprised of Financial Entity, Insurance, Public Fund, and Taft Hartley. 4Education is comprised of Higher Education and Independent schools. Fund Evaluation Group, LLC $61B Assets under advisement1 Private Foundations 18 Other 3 17 Corporations 20 2 Education 4 72 Healthcare 27 FEG is an independent and 100% employeeowned firm, which allows us to put clients first. Religious Organizations 39 Charitable Organizations 47 Community Foundations 42 Confidential Not for Redistribution

32 Angie Santo-Walter Director, Non-profits and Healthcare Systems, Russell Investments B.S., Finance and Organizational Behavior, Miami University Certificate in Public Relations, University of Washington Licensed Registered Representative, FINRA Series 7 and 63 (Russell Financial Services, Inc., member FINRA) Angie Santo-Walter is a director for Russell Investments non-profit and healthcare systems business. In this capacity, she is responsible for business development which she executes through the creation and promotion of the firm s thought leadership and sales messaging strategy. She is one of the lead authors for both the non-profit fiduciary s handbook and the healthcare fiduciary s handbook, and is actively involved in Russell Investments research aimed at the interests of the non-profit community. Prior to this role, Angie was responsible for the creation and execution of Russell Investments non-profit marketing strategy, industry and client event strategy, and served as the event director for the firm s institutional client conference. Prior to joining Russell Investments, Angie spent her career working with non-profit organizations to help them achieve their fundraising goals. She has been with the firm since Russell Investments

33 ABOUT RUSSELL INVESTMENTS One of the most experienced OCIO providers in the market 1 2 Over 37 years providing OCIO multi-manager solutions Over $10 billion in institutional non-profit assets One of the largest institutional outsourcing providers with $289.2 billion assets under management 4 3 We provide a customized investment solution tailored to your needs Expertise from governance to implementation to comprehensive back office / administrative support Deep staff and resources available to you (350+ investment professionals globally) Daily risk management Data as of March 31, 2017, unless otherwise noted. 1 In 2013, for the third year in a row, Russell Investments was named as an aicio Industry Innovation Award winner. The 2013 award named us the winner in the Investment Outsourcing category for asset managers and servicers. Notably, we were recognized for its in-house implementation capabilities and robust investment and sales teams. (The aicio Industry Innovation Awards have various categories; recipients may differ each year and not be repeated.) 2 For the seventh year in a row, Russell Investments was ranked as one of the topfive largest consultants. Ranking is based on worldwide assets under advisement (AUA) by the 2016 Pensions & Investments Consultant Directory. 3 In 2014, for a fourth time in a row, Russell Investments was ranked #1 for having the best manager due diligence practices by consultant relations professionals in a 2014 FundFire survey of nearly 100 respondents. (FundFire discontinued their survey in 2015.) 4 For the second year in a row, Russell Investments was top rated for Client Satisfaction in CIO magazine s 2017 Outsourced-Chief Investment Officer (OCIO) Vendor Ratings survey in Overall Service and Ancillary Services categories by 148 asset owners. As of February 22, Russell Investments. Comprehensive suite of risk management tools Our solution is cost effective, unbiased, and unconflicted Cost efficiencies and scale benefits Consistently top rated global manager research process Open architecture: independent 3rd party managers Flexible outsourcing platform to meet unique client needs

34 FEG DISCLOSURES This presentation was prepared by Fund Evaluation Group, LLC (FEG), a federally registered investment adviser under the Investment Advisers Act of 1940, as amended, providing nondiscretionary and discretionary investment advice to its clients on an individual basis. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Fund Evaluation Group, LLC, Form ADV Part 2A & 2B can be obtained by written request directed to: Fund Evaluation Group, LLC, 201 East Fifth Street, Suite 1600, Cincinnati, OH Attention: Compliance Department. Neither the information nor any opinion expressed in this report constitutes an offer, or an invitation to make an offer, to buy or sell any securities. The information herein was obtained from various sources. FEG does not guarantee the accuracy or completeness of such information provided by third parties. The information in this presentation is given as of the date indicated and believed to be reliable. FEG assumes no obligation to update this information, or to advise on further developments relating to it. FEG, its affiliates, directors, officers, employees, employee benefit programs and client accounts may have a long position in any securities of issuers discussed in this presentation. Past performance is not indicative of future results. Any return expectations provided are not intended as, and must not be regarded as, a representation, warranty or predication that the investment will achieve any particular rate of return over any particular time period or that investors will not incur losses. Index performance results do not represent any portfolio returns. An investor cannot invest directly in a presented index, as an investment vehicle replicating an index would be required. An index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. This presentation is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this presentation. NACUBO data was obtained from the NACUBO-Commonfund Study of Endowments (NCSE). The study includes a survey of U.S. colleges and universities. The study divided the data into six categories according to size of endowment, ranging from institutions with endowment assets under $25 million to those with assets in excess of $1 billion. The National Association of College and University Business Officers (NACUBO) is a membership organization representing more than 25,000 colleges, universities and higher education service providers across the country and around the world. The Commonfund Institute houses the education and research activities of Commonfund and provides the entire community of long-term investors with investment information and professional development programs. NCSE returns are presented net of all management fees and expenses. Fund Evaluation Group, LLC Confidential Not for Redistribution

35 FEG DISCLOSURES The data is obtained from the proprietary FEG 2017 Community Foundation Survey. The study includes a survey of 90 U.S. Community Foundations as of April 7, The data from this survey was divided into five categories based on assets of the community foundation with assets ranging from less than $25 million to greater than $250 million. The information in this study is based on the responses provided by the participants and is meant for illustration and educational purposes only. FEG Capital Market Assumptions are the result of a hypothetical allocation of actual investments constructed under assumption of various constraints and liquidity needs, and allocations may not be appropriate for all investment objectives. The results do not necessarily represent the actual asset allocation of any client portfolio and may not reflect the impact that material economic and market factors might have had on investment decisions. Investment results achieved by actual client accounts may differ from the results portrayed. Given the complex risk-reward trade-offs involved, we advise clients to rely on judgment as well as quantitative optimization approaches in setting strategic allocations. Exclusive reliance on the above is not advised. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. Note that these asset class and strategy assumptions are passive only they do not consider the impact of active management. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Assumptions, opinions and estimates are provided for illustrative purposes only. They should not be relied upon as recommendations to buy or sell securities. A manager s ability to achieve similar outcomes is subject to risk factors over which the manager may have no or limited control. Forecasts of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. Both past performance and yield may not be a reliable guide to future performance. Fund Evaluation Group, LLC Confidential Not for Redistribution

36 RUSSELL INVESTMENTS DISCLOSURES THIS CONFERENCE MATERIAL WAS CREATED BY RUSSELL INVESTMENTS AS AN EDUCATIONAL TOOL, AND IS NOT FOR FURTHER DISTRIBUTION. Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Investments that are allocated across multiple types of securities may be exposed to a variety of risks based on the asset classes, investment styles, market sectors and size of companies preferred by the advisors. Investors should consider how the combined risks impact their total investment portfolio and understand that different risks can lead to varying financial consequences, including loss of principal. Diversification does not assure a profit and does not protect against loss in declining markets. The trademarks, service marks and copyrights related to the Russell Investments indexes and other index data as noted are the property of their respective owners. Russell Investments ownership is composed of a majority stake held by funds managed by TA Associates with minority stakes held by funds managed by Reverence Capital Partners and Russell Investments management. Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the FTSE RUSSELL brand. Copyright 2017 Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty. Date of first use: Nov 2017 AI

37 2016 Fund Evaluation Group, LLC 37 Confidential Not for Redistribution