SHEET METAL WORKERS' NATIONAL PENSION FUND AND ITS' SUBSIDIARIES

Transcription

1 SHEET METAL WORKERS' NATIONAL PENSION FUND AND ITS' SUBSIDIARIES INDEX OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2010 and 2009 PAGE Consolidated Statement of Net Assets Available for Pension Benefits 1 Consolidated Statement of Changes in Net Assets Available for Pension Benefits 2 Schedule of Corporate Stocks 3 Schedule of Corporate Bonds 4 Schedule of Government and Israel Bonds 5 Schedule of Loans 6 Schedule of Insurance Contract Investments 7 Schedule of Common Collective Trusts 8 Schedule of Limited Partnerships 9 Schedule of Mutual Funds 10 Schedule of Real Estate Investments 11 Schedule of REITS and REOCS 12 Schedule of Contributions 13 Schedule of Withdrawal Liability 14 Schedule of Due From/(To) Affiliated Organizations 17 Schedule of Income 18 Schedule of Investment Expenses 19 Schedule of Manager and Custodian Fees 19a Schedule of Settlement and Other Income 20 Schedule of Administrative Expenses 21 Schedule of Local Collection Fees 21a Administrative Expense Variance Analysis 22

2 SHEET METAL WORKERS' NATIONAL PENSION FUND AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF NET ASSETS AVAILABLE FOR PENSION BENEFITS For the Six Months Ending June 30, 2010 Year to Date Year to Date ASSETS: Investments - at fair value Corporate stocks * $1,584,249,366 $1,410,855,126 Corporate obligations * 280,825, ,443,483 United States Government and Government Agency Obligations 200,126, ,257,271 Loans 16,698 7,326 Insurance company contracts * 23,898,963 25,927,288 Common collective trusts 35,488,378 38,213,746 Limited Partnerships * 219,138, ,988,728 Mutual funds 41,977,000 39,004,813 Real Estate * 42,148,027 40,126,700 REITS and REOCS * 58,197,138 30,714,345 Short-term investments 114,473,242 99,277,896 Foreign obligations * 5,534,717 5,489,847 Total Investments 2,606,074,542 2,407,306,569 Receivables Contributions * 42,348,221 40,608,573 Employer withdrawal liability - net 25,285,688 26,891,206 Accrued interest and dividends 7,957,646 7,933,428 Receivable for investment securities sold 43,572,422 55,360,636 Due from affiliated organizations 371, ,533 Real Estate A/R 438, ,805 Total Receivables 119,973, ,484,181 PREPAID EXPENSES, DEPOSITS AND OTHER ASSETS 4,170,945 11,507,102 CASH NBF Escrow Accounts 1,303,128 4,924,494 Real Estate Cash Account 2,000,569 1,329,014 Operating NPF Cash Accounts 80,442,718 41,417,781 Total cash 83,746,415 47,671,289 Total Assets 2,813,965,732 2,597,969,141 LIABILITIES AND NET ASSETS: Accounts Payable and Withholdings 910, ,646 Unprocessed/Undistributed Contributions (2,925,394) 1,418,289 Settlement of Securities Purchased 90,347, ,325,760 Real Estate Liabilities & Notes Payable * 15,849,404 16,385,683 Total Liabilities 104,181, ,093,378 Net Assets Available for Pension Benefits 2,709,783,839 2,472,875,763 * See accompanying schedules. Notes: Included within the reported assets are the following Securities on Loan: Corporate Stocks $299,210,874, Corporate Bonds $24,293,781, and Government Bonds $6,312,010. These are Internal financial statements and therefore, are subject to change. Page 1

3 ADDITIONS SHEET METAL WORKERS' NATIONAL PENSION FUND AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PENSION BENEFITS For the Six Months Ending June 30, 2010 Year to Date Year to Date Investment Income Net appreciation in fair value of investments ($101,792,418) $113,123,087 Interest and dividend income 31,508,210 33,744,834 Rental Income 1,246,120 1,302,184 (69,038,088) 148,170,105 Less investment expense * 5,345,589 3,751,438 Total investment income (loss) -net (74,383,677) 144,418,667 Contributions Employer contributions * 146,355, ,125,612 Liquidated damages 342, ,643 Withdrawal liability 5,363,674 3,883,130 Total Contributions 152,061, ,476,385 Other additions Settlement income 363,314 37, ,314 37,385 Total Additions 78,041, ,932,437 DEDUCTIONS Benefits Pension Benefits 197,958, ,946,850 COLA Benefits 56,364 9,799 Death Benefits 183, ,645 Total Benefits 198,198, ,283,294 Administrative expenses - net * 5,753,939 6,111,968 Total Deductions 203,952, ,395,262 Net increase/decrease (125,911,025) 104,537,175 Net assets available for pension benefits Beginning of year 2,835,694,864 2,368,338,589 End of period 2,709,783,839 2,472,875,764 * See accompanying schedules. Note: These are unaudited internal financials and therefore subject to change. Page 2

4 Sheet Metal Workers' National Pension Fund Schedule of Corporate Stocks at 6/30/10-5,309,370 Investment Investment Allowance Allowance Unrealized Gain/Loss Start at Cost at Market Value Chg in Mkt Value Chg in Mkt Value for Month Ended Date 6/30/2010 6/30/2010 6/30/2010 5/31/2010 6/30/2010 Bony Custodian Accounts Wells Capital Mid Cap Jul-03 73,172,598 78,481,968 5,309,370 11,076,963 (5,767,593) Cambiar Feb-04 85,874,933 86,039, ,272 5,773,579 (5,609,307) Cramer, Rosenthal, McGlynn Oct-06 70,920,810 68,585,292 (2,335,518) 2,026,946 (4,362,464) Vanguard Emerging Markets Sep-09 25,271,750 28,055,615 2,783,865 2,938,950 (155,085) Janus Large Cap May-07 62,624,789 66,897,983 4,273,194 9,113,045 (4,839,851) Philadelphia International Jan-05 93,437,534 88,256,543 (5,180,991) (4,623,089) (557,902) Delaware Mar-05 41,306,617 43,091,159 1,784,542 4,924,562 (3,140,020) Seix Investment Advisors Apr , , , ,196 3,029 Wells Capital Large Cap May-07 70,936,409 71,239, ,574 6,003,069 (5,699,495) Westfield Large Cap Growth Oct ,440, ,604,312 (835,901) 6,318,749 (7,154,649) Brandywine Asset Mgmt/Global Currents * Apr-01 90,951,041 87,527,607 (3,423,434) (1,103,250) (2,320,184) Thornburg Sep-09 91,112,469 88,483,583 (2,628,885) (2,575,885) (53,000) Blackrock Feb , ,438 18,438 10,350 8,088 Penn Capital* Jan ,771 1,771 16,416 (14,646) NFJ Mar-03 47,118,431 52,242,497 5,124,066 9,877,989 (4,753,922) Wall Street Mar-03 46,783,122 49,264,403 2,481,280 6,363,232 (3,881,951) Westfield Small Cap Mar-03 53,720,149 55,239,044 1,518,894 6,820,639 (5,301,744) S&P 500 Index Mar ,295, ,671,397 (26,623,933) (11,673,451) (14,950,482) Mid Cap Index Mar ,813,043 97,894,826 (4,918,216) 1,790,065 (6,708,282) Small Cap Index Mar ,005,478 96,098,291 (9,907,186) (1,631,183) (8,276,003) HGK Feb-08 77,455,860 70,978,447 (6,477,413) (2,365,738) (4,111,675) MET West Feb-08 85,801,460 84,107,345 (1,694,115) 2,166,098 (3,860,213) PIMCO Jul-08 1,443,707 2,141, , ,293 (20,700) General Fund Cash Account Jan (15)??? Securities Lent out to Third Parties Mar Total of Bank of New York Accounts 1,621,445,034 1,582,158,580 (39,286,453) 52,241,614 (91,528,067) Direct Investments Union Bank & Trust 296, , , ,668 (11,554) Union Financial Corp. 446,797 1,222, , , ,803 Total for Direct Investments 743,572 2,090,786 1,347,214 1,249,965 97,249 Total Corporate Stocks at 6/30/10 1,622,188,606 1,584,249,366 (37,939,239) 53,491,579 (91,430,818) * Includes Preferred Stock, permissible in the Advisors Investment Guidelines. Page 3

5 Sheet Metal Workers' National Pension Fund Schedule of Corporate Bonds at 6/30/10 Investment Investment Allowance Allowance Unrealized Gain/Loss Start at Cost at Market Value Chg in Mkt Value Chg in Mkt Value for Month Ended Date 6/30/2010 6/30/2010 6/30/2010 5/31/2010 6/30/2010 Bony Custodian Accounts Seix Investment Advisors Apr-02 61,546,991 63,756,365 2,209,374 1,948, ,656 Met West Core Fixed Sep-09 42,023,883 45,133,715 3,109,832 2,606, ,902 Blackrock Feb-08 78,996,304 79,131, ,655 (39,686) 175,340 Penn Capital Jan-06 42,988,135 46,319,020 3,330,885 3,750,399 (419,514) PIMCO Jul-08 42,569,434 46,484,760 3,915,327 3,485, ,050???? Securities Lent out to Third Parties Mar Total Corporate Obligations at 6/30/10 268,124, ,825,819 12,701,072 11,751, ,434 Page 4

6 Sheet Metal Workers' National Pension Fund Schedule of U.S. Government and Foreign Government Obligations at 6/30/10 Investment Investment Allowance Allowance Unrealized Gain/Loss Start at Cost at Market Value Chg in Mkt Value Chg in Mkt Value for Month Ended Date 6/30/2010 6/30/2010 6/30/2010 5/31/2010 6/30/2010 Bony Custodian Accounts Met West Core Fixed Sep-09 50,294,739 52,939,251 2,644,512 2,127, ,980 Blackrock Feb-03 61,259,766 62,549,092 1,289, , ,964 PIMCO Jul-08 81,354,395 84,638,152 3,283,757 1,342,896 1,940,861????? Securities Lent out to Third Parties Mar Total Government Bonds at 6/30/10 192,908, ,126,495 7,217,595 4,167,790 3,049,805 Bony Custodian Accounts Met West Core Fixed Sep-09 3,000,000 2,999,820 (180) - (180) Blackrock Feb-03 2,438,321 2,534,897 96,576 81,273 15,303 Total Foreign Government Notes at 6/30/10 5,438,321 5,534,717 96,396 81,273 15,123 Page 5

7 Sheet Metal Workers' National Pension Fund Schedule of Loans at 6/30/10 Investment Principal Adjustment Investment Investment Allowance at Cost Payments made in for at Cost at Market Value Chg in Mkt Value 12/31/ Delinquencies 6/30/2010 6/30/2010 6/30/2010 Sandia Mortgage Series 1991-B Class B 9, $ 8,384 9, Sandia Mortgage Series 1991-A Class C 26,550 4,003 $ 22,546 2,108 (20,438) Sandia Mortgage Series 1991-A Class C 210,125 26,403 $ 183,723 5,460 (178,263) Total Loans at 6/30/10 245,801 31,148 0 $ 214,653 16,697 (197,955) Page 6

8 Sheet Metal Workers' National Pension Fund Schedule of Insurance Company Contracts at 6/30/2010 John Hancock John Hancock AETNA AETNA ULLICO Total GAC 1022 (IPG) Separate Account 14 GAC 1433 GAC /30/10 Balance at 12/31/09 10,785,748 12,969, , , ,870 24,907,969 Investment Income 389,063 9, ,613 Void Issues - Pension Benefits Paid (2,672,358) (27,881) (22,345) (9,600) (2,732,184) Death Benefits Paid (76,749) (76,749) Transfer to/from Separate Acct 1,403,546 1,403,546 Transfer to/from General Acct (1,403,546) (1,403,546) Realized Gain/Loss - Unrealized Gain/Loss 736, ,845 Investment Mgt Fee (63,377) (63,377) Transfer from Wachovia Acct # , , ,017 Transfer to Wachovia Acct # (22,331) (22,331) Transfer from Wachovia Acct # Transfer to BONY STIF Account. - Administrative Charge (79,839) (79,839) Total Insurance Company Contracts at 6/30/10 10,272,237 12,546, , , ,820 23,898,963 Page 7

9 National Pension Fund Collective/Common Trust For the Six Months Ending June 30, 2010 Beginning Ending Ending 2010 Cost Balance Reinvested Cost Balance 06/30/10 Market 12/31/09 Unrealized 12/31/09 Income 06/30/10 Allowance Balance Allowance Gain/Loss Multi-employer Property Trust $7,603,482 $2 $7,603,484 $27,884,894 $35,488,378 $26,897,631 $987,263 Total 7,603, ,603,484 27,884,894 35,488,378 26,897, ,263 NPF Collective Page 8

10 National Pension Fund NPF Limited Partnerships For the Six Months Ending June 30, 2010 Total Beginning 2010 Investment 2010 Ending Cost Balance Additions/ Cost Balance Unrealized Realized Market Balance 12/31/09 Disbursements 06/30/10 Gain/(Loss) Gain/(Loss) 6/2010 Hedge Funds Austin Capital All Seasons Offshore Fund Ltd $14,990,167 ($3,077,515) $11,912,651 ($1,973,208) $9,939,443 Mesirow Institutional Multi LTD 65,000,000 65,000,000 19,893,346 84,893,346 Berens Capital Fund 33,000,000 33,000,000 2,044,932 35,044,932 Private Advisors Hedged Equity Fund 57,750,000 10,000,000 67,750,000 2,188,344 69,938,344 Subtotal for Hedge Funds 170,740,167 6,922, ,662,651 22,153, ,816,065 Invesco US Buy Out 33,881 (33,851) 30 1,985,106 1,985,136 Invesco Non US 742, ,766 Invesco Venture 3,293,238 3,293,238 (436,783) 2,856,455 Subtotal for Invesco 3,327,118 (33,851) 3,293,268 2,291,089 5,584,357 Cramer, Rosenthal & McGlynn Cerberus Institutional Partners 385, ,533 DCM III, LP 786, ,428 (144,680) 641,748 Freemont Partners III, L.P. 932,632 8, ,475 (32,278) 909,197 Prism Venture Partners IV LP 1,247,900 (122,292) 1,125,609 (594,668) 530,941 Quadrangle (Access) Capital Partners 220, ,974 (37,243) 183,731 Quadrangle (Offshore) Capital Partners 65,955 65,955 (30,769) 35,186 Quadrangle Capital Partners 183, , ,946 TCW/Crescent Mezzanine Partners 396, ,113 TL Ventures V. LP 538,907 (7,767) 531,140 (330,617) 200,523 Willis Stein & Partners III, LP 866,429 (83,558) 782, , ,255 Ripplewood Partners II, LP 604,148 (163,212) 440, , ,197 MHR Institutional Advisors II 484, , ,309 1,032,327 Subtotal for Cramer 5,747,391 (367,986) 5,379, , ,607 6,198,696 Other Limited Partnerships WPGVA Venture-Limited Partnership 2,379,749 2,379, ,006 3,173,755 Goldman Sachs Private Equity Partners X Off 3,064,711 1,774,148 4,838,859 (473,033) 4,365,826 Subtotal for Other Limited Partners 5,444,460 1,774,148 7,218, ,973 7,539,581 Total Limited Partnerships 185,259,136 8,294, ,553,932 25,584, , ,138,699 NPF Ltd Partnshp Page 9

11 National Pension Fund Mutual Funds Schedule For the Six Months Ending June 30, 2010 Beginning Ending Ending 2010 Cost Balance Reinvested Cost Balance 06/30/10 Market 12/31/09 Unrealized 12/31/09 Income 06/30/10 Allowance Balance Allowance Gain/Loss AFL-CIO Housing Investment Trust $38,638,573 $1,153,332 $39,791,905 $2,185,095 $41,977,000 $1,428,202 $756,893 Total 38,638,573 1,153,332 39,791,905 2,185,095 41,977,000 1,428, ,893 NPF Mutual Funds Page 10

12 National Pension Fund Schedule of Real Estate Investments For the Six Months Ending June 30, 2010 Mortgage & Liabilities & Name and Location Acquisition Date Assets Liabilities Interest Payable Mortgage Payable *Headquarters Building SMWNPF Headquarters Bldg LLC August-82 $22,827,520 ($229,007) ($7,564,680) ($7,793,687) Alexandria, VA Grant Street (Formerly FHLB) Grant Street Office Corp December-91 12,309,907 (78,007) (7,938,320) (8,016,327) Pittsburgh, PA **Mercy Medical LLC Mercy Medical Office LLC April-93 7,010,600 (39,390) (39,390) Coon Rapids, MN Total 42,148,027 (346,404) (15,503,000) (15,849,404) *Market value based on real estate assessment. **Mortgage paid off in 2009 under terms of loan. Cost & Fees to secure a new loan were unfavorable to the Fund. Page 11

13 Sheet Metal Workers' National Pension Fund Schedule of REITS and REOCS at 6/30/10 Bony Accounts Investment Investment Allowance Allowance Unrealized Gain/Loss at Cost at Market Value Chg in Mkt Value Chg in Mkt Value for Month Ended 6/30/2010 6/30/2010 6/30/2010 5/31/2010 6/30/2010 Clarion REIT 53,037,853 58,197,138 5,159,285 9,055,171 (3,895,886) Total REITS at 6/30/ ,037,853 58,197,138 5,159,285 9,055,171 (3,895,886) Page 12

14 Sheet Metal Workers' National Pension Fund Contribution Income For Period Ended 6/30/10 Per Accounting Department Records Regular Contributions Adjustments for 401H Total deposits per bank (Cash basis) Deposited Legal & other Fees Contributions January 25,635,084 (105,720) 575,000 February 22,980,310 (39,731) 575,000 March 24,229,927 (92,140) 575,000 April 25,375,815 (86,421) 575,000 May 24,524,847 (76,359) 575,000 June 23,473,438 (122,777) 575,000 July August September October November December Delinquent Contributions at 6/30/10 7,590,700 Allowance for Delinquent Contributions at 6/30/10 (3,036,280) Interest Income Received with Contributions Contributions Receivable at 6/30/10 37,218, ,000 Prior Year Contributions Receivable (37,177,107) (575,000) Prior Year Delinquent Contributions Receivable (4,045,119) 146,770,417 (523,148) 3,450,000 Adjustments for Legal (523,148) Adjustment for California Collection Fees 31, ,278,560 Total Contributions Receivable at 6/30/10 42,348,221 Contributions (Excluding 401H) 146,278, (H) Contributions 3,450, ,728,560 Less: 401(H) Benefits (3,373,047) Contributions per P&L 146,355,513 Page 13

15 SHEET METAL WORKERS' NATIONAL PENSION FUND FINANCE WITHDRAWAL LIABILITY REPORT AS OF 6/30/10 AMT. OF PRINCIPAL TOTAL TOTAL WITHDRAWAL INTEREST AMT. UNCOLLECTIBLE AMT. EMPLOYER NAME LOCAL # ER NUMBER LIABILITY RECEIVED RECEIVED AMT. DUE 2003 Clay Co Sheet Metal , , , Duct Fab Company Inc , , ESM Corp , , E W Tompkins , , Fisher Klosterman , , , Goettl Air Condition ,045, ,045, (0.00) Harold J. Becker Co , , , John Harrison ,011, ,011, Quality Metal Works , , , United Service Equip ,794, ,794, Wheeler Blaney Co , , , White Mop Wringer Co , , , ,858, ,474, ,364, , Commercial Cad Inc , , D S M Inc , , Eastern Sign Tech , , Major Reflector Prod , , , Metfab, Inc , , , M M T Heating & Cooling , , Pooley Company , , Precision Mill Fabricate , , , Skilcraft , , , Statewide Sheet Metal , , Surburban Heating & Coolling Inc , , Sunset Fuel , , ,491, ,079, ,256, , A&B Mechanical Inc , , Central Sign & Crane , , , Courtad Construction , , , D & R Heating & Cool , , , Industrial Alloy Fab , , Industrial Metal Enterprises LLC , , , Galicks , , Grove-Accu-Fab, Inc , , (0.00) Union Supply Company , , , ,805, , ,159, (0.00) 2006 Accurate Fabrication ,410, ,410, Archway Cooling & Heating , , Cross Connection , , (0.00) Gremar Metal Industries , , Habco Hanna Heating & A/C , , HSMW-ACQ LLC , , , Hutchison Mechanical , , , Jasons Sheet Metal , , Metcraft, Inc ,778, ,600, , M W Sausse & Co , , , Paul Van Zeeland Mechanical , , Schweitzer Corp/Haden ,368, ,368, Tru-Art Sign Co Inc , , , W G Heating & Cooling , , Webster Heating & Air , , , West Coast ,274, , , ,964, ,191, ,068, ,704, Page American Sheet Metal , , Caudel Heating & AC , , CraftMasters Architectural Inc , , Intermountain Heating , , ITT Pure Flo , , J & L Inc ,443, , ,237, Philag Mechanical , , Pre Heat INC , , S M Services , , White Way Sign & Maintenance , , , , ,199, , ,133, , ,867,920.59

16 AMT. OF PRINCIPAL TOTAL TOTAL WITHDRAWAL INTEREST AMT. UNCOLLECTIBLE AMT. EMPLOYER NAME LOCAL # ER NUMBER LIABILITY RECEIVED RECEIVED AMT. DUE D Erectors Inc , , , Albany Metal Cannon Fabrication , , , Century Engineering , , , C J Muldoon & Sons , , DVS Industries ,200, ,200, Empire Sheet Metal , , , Mahone Roofing , , , Majestic Products ,958, ,277, ,680, Owens Corning-Shared , , , (0.03) Redbird Heating ,101, , , Southern Mech , , Wes Co Industries ,089, , ,056, Witney Contractors ,180, ,180, ,319, ,707, ,969, ,641, ABB Paint Finishing ,071, , ,808, Brown's Sheet Metal ,126, , , Capital Manufacturing ,135, ,135, Complete Comfort Hea , , Custom Stainless , , ED Barnes A/C , , Fowler Heating & Cooling , , , Holloway Heating & A/C , , Kelco Mechanical Kevry Corporation , , Kiko Heating & A/C ,528, ,528, LVI Corp , , Lafayette Sign Co , , M A P Heating & Cooling ,146, , , Maximum Air Flow , , Midtown Neon Sign , , Pass One Hour Heating , , , Senicas Air Condition , , , Servi temp Heating , , So-Lite Neon Sign , , , Steinbruner Heating , , , TRI R Steel Fabrication , , Voss Heating & A/C , , , Warner Summit Fabrication , , , Williams A/C & HTG , , , ,309, , ,730, ,710, Acme Manufacturing ,416, ,750, , AD&D Steel Equip , , American Sheet Metal , , B T Mancini Braatz Heating , , Central Air , , Environmental Balanc , , Grays HVAC , , Heartland Products , , Independent Inc , , Quality Craftsman , , R C Kimbrel Roofing , , Sign Spec Inc ,367, ,367, Thomco INC , , ,908, ,750, , ,187, TOTALS 60,856, , ,851, ,718, ,285, TOTAL EMPLOYER WITHDRAWAL LIABILITY 60,856,167 Total Principle Amount Received (16,851,900) Total Uncollectible 6/30/10 (18,718,579) Total 6/30/10 25,285,687 Total Employer Withdrawal Liability as of 12/31/09 (52,947,861) Total Employer Withdrawal Liability as of 12/31/10 60,856,167 Newly Assessed as Uncollectible in 2010 (2,545,223) AMG Industries, Inc. (Charles Barber) 591 TOTAL WITHDRAWAL LIABILITY INCOME 5,363,674 Page 15

17 SHEET METAL WORKERS NATIONAL PENSION FUND UNCOLLECTIBLE ASSESSESSED 2010 Jun-10 AD&D Equipment Business ceased operations and no assets to recover. $ 303, Brown's Sheet Metal Settlement agreement. Original assessment $1,126, and $338, $ 588, written off in Payment of $200,000 received 2010 and balance $588, written off Empire Sheet Metal Settlement agreement. Original assessment $331, and $206, $ 3, written off in Payment of $122,000 received 2010 and balance written off. Gremar Metal Industries Filed Chapter 7 Bankruptcy. $ 618, LVI Corporation Filed Chapter 7 Bankruptcy. $ 364, Standex International Settlement agreement. Original assessment in 2010 $3,416,836.50, $ 666, payment of $2,750,000 received 2010 and balance written off. Total Uncollectible 2010 $ 2,545, Page 16

18 SHEET METAL WORKERS' NATIONAL PENSION FUND DUE TO/FROM OTHER SMW ORGANIZATIONS JUNE 2010 Due From/(To) Administrative Services Agreement Stabilization Agreement of the Sheet Metal Industry 148,074 Accidental Death & Dismemberment Plan 3,510 National Supplemental Savings Plan 33,406 International Training Institute 70,800 Headquarters Building 815 National Energy Management Institute Committee 25,600 SMW International Association 3,684 Scholarship Fund 4,600 Local Unions & Councils US Pension Fund 43,536 Local Unions & Councils Canada Pension Fund 9,100 Occupational Health Institute Trust 23,200 Total Administrative Services Agreement 366,325 Other Due From/(To) Local Unions & Councils Pension Fund 5,039 5,039 TOTAL DUE TO/FROM OTHER SMW ORGANIZATIONS 371,364 Page 17

19 Sheet Metal Workers' National Pension Fund Schedule of Income at 6/30/10 Interest & Dividend Income Realized Gain/(Loss) Unrealized Gain/(Loss) TOTAL per F/S Balance at 5/31/10 - Gain(Loss) 26,863,433 48,924,797 (65,704,836) 10,083,395 BONY CUSTODIAN ACCOUNTS Wells Mid Capital 40, ,664 (5,767,593) (5,422,581) Cambiar 152, ,228 (5,609,307) (4,862,648) CRM 97,377 6,395 (4,362,464) (4,258,692) Vanguard Emerging Markets 2 - (155,085) (155,083) Clarion REIT 244, ,446 (3,895,886) (3,494,738) McMorgan & Co. - 13,529-13,529 Janus Large Cap (8,132) 152,158 (4,839,851) (4,695,825) General Account #3 (STIF) 2,419 (15) 2,404 Philadelphia International (Foreign) (32,603) (127,583) (533,385) (693,572) Delaware 66,627 - (3,140,020) (3,073,393) MET West 197,302 - (3,860,213) (3,662,912) Seix Investment Advisors 463,790 81, , ,761 Wells Large Cap 50, ,417 (5,699,495) (5,096,337) Westfield Large Cap 76, ,673 (7,154,649) (6,882,116) PIMCO 562, ,766 2,209,531 3,041,886 Brandywine Asset Management (Foreign) 81, ,962 (2,305,484) (1,478,258) Thornburg 242, ,874 (53,000) 343,523 Blackrock 395, , ,790 1,458,302 HGK 128,564 (315,459) (4,111,675) (4,298,570) Penn Capital 334,944 33,690 (434,160) (65,526) Met West Core Fixed 374, ,286 1,019,702 1,554,841 NFJ 128,442 1,848,605 (4,753,922) (2,776,875) Wall Street 5,942 (287,607) (3,881,951) (4,163,616) Westfield Capital 3,451 1,244,752 (5,301,744) (4,053,542) S&P 500 Index 443,524 (95,881) (14,907,720) (14,560,076) Mid Cap Index 148, ,063 (6,688,537) (6,399,448) Small Cap Index 113, ,174 (8,242,456) (7,366,236) Other Types of Income * 330, ,607 (667,488) (144,309) Total Income at 6/30/10 31,508,208 56,349,309 (158,155,228) (70,297,711) Total Net Appreciation in fair value of investments (101,805,918) * Note that Other Types of Income includes all income from Hancock Insurance contracts, AETNA Insurance contracts, ULLICO, Limited Partnerships Interest Income, Wachovia, Sandia Mortgage, interest on Lockbox deposits, MEPT, AFL-CIO, and other miscellaneous investment income. Page 18

20 Sheet Metal Workers' National Pension Fund Schedule of Investment Expenses at 6/30/2010 Balance Expenses 5/31/2010 During 6/30/2010 Investment Manager Expenses * 3,436, ,811 4,144,790 Custodian Expenses * 94,013 19, ,513 Citigroup 546, , ,871 Independent Fiduciary Services 60,853 58, ,705 Bank of New York Mellon 20,833 4,167 25,000 Kite Realty 115,986 22, ,486 Abel/Noser Corp. 2,500-2,500 Commissions and Foreign Expense Fees 121,871 27, ,723 Total Investment Expenses at 6/30/2010 4,399, ,194 5,345,589 * See accompanying Schedule detailing Manager Fees by investment and Custodian Fees Page 19

21 Sheet Metal Workers' National Pension Fund Schedule of Manager and Custodian Fees at 6/30/2010 Manager Fees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Philadelphia 105, , ,592 Blackrock 61,215 63, ,281 Brandywine Asset Mgmt/Global Currents 104, , ,155 Cambiar 86,087 90, ,993 Clarion REIT 67,725 76, ,724 Cramer, Rosenthal, McGlynn 131, , ,890 Delaware 60,327 66, ,068 HGK 69,414 73, ,240 Janus 80,099 84, ,234 McMorgan & Company - Fixed 44,871 46,521 91,391 MET West 86,231 92, ,655 NFJ 95, , ,998 Penn Capital 55,719 60, ,776 PIMCO 106, , ,362 Seix 66,724 66, ,008 Thornburg 98, , ,365 Wells Capital Mid Cap 134, , ,840 Wells Capital Large Cap 80,472 84, ,057 Wall Street 81,670 89, ,043 Westfield Small Cap 101, , ,956 Westfield Large Cap Growth 128, , ,521 BONY Index Funds S&P 500 Large Cap 29,368 24,000 53,368 BONY Index Funds Mid Cap 10,631 10,500 21,131 BONY Index Funds Small Cap 10,268 10,500 20,768 Cramer, Rosenthal, McGlynn 27,379 24,000 51,379 Invesco Fund of Funds 18,000 18,000 36,000 Hancock Separate Account 14 32,171 31,206 63,377 Kite Realty Advisors Grant Street Corporation 9,029 9,014 18,044 HBI 19,474 25,783 45,257 Mercy Building 18,412 17,906 36,318 Balance as of 6/30/2010 2,020,967 2,123, ,144,790 Custodian Fees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Bony - Custodian (Flat Fee) 32,500 32,500 65,000 Bony - Global Custodian 22,513 26,000 48,513 Balance as of 6/30/ ,013 58, ,513 Page 19a

22 Sheet Metal Workers' National Pension Fund Schedule of Settlement Income at 6/30/2010 Settlement 06/30/2010 ACE Limited 7 American Italian Pasta Company 248 AOL Time Warner Inc. 62 Barrick Gold Corporation 4,580 Health Management Systems 230 Forest Laboratories Inc. 7,055 Freddie Mac 61 King Pharmceuticals Inc. 359 KLA Tencor Corporation 374 Lucent Inc. 876 Nortel Networks Corporation 1,662 Qwest Communications International Inc. 1,804 Stanley Gaudet 11,700 Tenet Healthcare Corporation 4,412 TNS Inc. 2,937 Winstar Communications Inc. 9,041 Worldcom Inc. 20,815 United Rentals Inc. 2,943 USA Mobility Inc. 1,233 Veritas 68 XEROX Corporation 292,636 Zale Corporation 210 Total Settlement 6/30/ ,314 Page 20

23 National Pension Fund SCHEDULE OF ADMINISTRATIVE EXPENSES For the Six Months Ending June 30, 2010 NPF Budget June June Year to Date Year to Date Year to Date YTD Curr Year Last Year Variance Actuarial 124,250 2,140 20, , ,161 (2,827) Admin Services - Hancock/Ullico 73,820 13,233 13,808 79,839 83,309 3,470 Admin Services - Other 7, , ,741 Audit/Accounting Fees 35,000 35,000 35,000 34,000 (1,000) Bank Charges 49,428 8,520 10,372 42,490 50,092 7,602 Business/Travel 23,850 4, ,406 16,941 2,535 Computer Processing 428,000 54, , , ,184 11,079 Computer Software/Hardware/Supp 6,940 1,010 (5,930) Consultant Fees 174, ,419 56, , ,826 (27,402) Dues 2, ,008 10,645 7,637 Employee Benefits 925, , , , ,675 (82,814) Equipment/Equip Maint 28,660 2,468 5,641 25,550 18,550 (7,000) Fiduciary Insurance 385,215 52,544 58, , ,477 37,216 Insurance 10,455 2,252 3,601 13,356 7,687 (5,669) Legal - Outside Delinq Counsel 280,915 78,476 53, , ,009 (24,759) Legal Fees 190,200 30,911 36, , ,041 13,801 Legal Fees reimbursed (53,535) (31,112) (11,384) (157,309) (50,331) 106,978 Local Union collection services * 131,450 10,982 12,905 56,171 78,564 22,393 Miscellaneous (60) 1,246 7,508 7, Office Supplies 11,302 1,451 2,542 19,582 19, Payroll Audits 410,633 67,856 84, , ,283 9,936 PBGC 621, , , , ,311 (3,590) Postage/Delivery/Shipping 218,000 71,297 21, , ,425 30,837 Printing 96,723 41,156 5, ,192 77,645 (54,547) Records Retention 87, ,976 40,417 33,672 (6,745) Seminars/Training 15,500 7, ,774 4,341 (5,433) Soc Sec employment verification 11,690 2,265 5,446 13,590 31,860 18,270 Subscriptions/Publications 8,150 6,172 13,573 6,483 (7,090) Taxes 169,855 21,513 20, , ,320 (37,526) Trustee Expense 35,000 10,422 20,515 10,093 Voice and Data Lines 66,775 6,546 8,306 41,855 53,466 11,611 Wages 1,857, , ,406 1,712,071 1,856, ,199 Sub - Total 6,416,238 1,150,157 1,084,188 6,102,655 6,458, ,791 Less: Administrative Reimbursement from other SMW Organizations (400,920) (58,736) (58,107) (348,714) (346,500) 2,214 TOTAL 6,015,318 1,091,421 1,026,081 5,753,941 6,111, ,005 Page 21

24 Sheet Metal Workers' National Pension Fund Schedule of Electronic Reporting/Contribution Collection Fees at 6/30/10 Balance Expenses 3/31/2010 During 2nd 6/30/2010 Local 10 (St. Paul, Minnesota) 3,024 8,391 11,415 Local 33 (Cleveland, Ohio) Local 100 2,816 10,649 13,464 Local Local 162 and 104 (Northern California) 15,404 15,888 31,292 Total Collection Fees at 6/30/ ,243 34,928 56,171 Page 21a

25 SHEET METAL WORKERS NATIONAL PENSION FUND ADMINISTRATIVE EXPENSE VARIANCE REPORT June 2010 Equipment/Equip Maintenance Increase due to the replacement of the telephone room air conditioning system. Fiduciary Insurance Decrease attributed to changes made in the investment management platform in the last 8 years, along with favorable claims experience. Insurance Increase due to a premium refund in April 2009, following worker comp premium audit. Printing Increase due to bulk order of paper vouchers for pension payments. Postage/Delivery/Shipping Decrease due to Critical Status and Annual Funding Notice mailings in April Records Retention Increase due to costs associated with destruction of files per record retention policy. Social Security Verification Decrease due to changes in fund protocol on when to request historical employment records, resulting in fewer search requests. Taxes Increase due to part of the tax expense incorrectly booked to Wages in Trustee Expenses Decrease due to depressed hotel industry lowering rates in March 2010 meeting. Voice and Data Lines Decrease due to NEC lease purchase of phones in 2009 and expenses related to set up costs in 2009 for video conferencing. Page 22