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, 2014 and 2013 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 Total Contribution Income 3 Schedule of Total Contribution Income vs. Benefits Paid 3a Schedule of 3 Year Market Value Comparison 4 Schedule of Corporate Stocks 5 Schedule of Corporate Bonds 6 Schedule of Government and Israel Bonds 7 Schedule of Insurance Contract Investments 8 Schedule of Common Collective Trusts 9 Schedule of Limited Partnerships 10 Schedule of Mutual Funds 11 Schedule of Real Estate Investments 12 Schedule of REITS and REOCS 13 Schedule of Contributions 14 Schedule of Withdrawal Liability 15 Schedule of Uncollectible Withdrawal Liability 18 Schedule of Due From/(To) Affiliated Organizations 19 Schedule of Income 20 Schedule of Investment Expenses 21 Schedule of Manager and Custodian Fees 21a Schedule of Settlement and Other Income 22 Schedule of Administrative Expenses 23 Schedule of Local Collection Fees 23a Schedule of Administrative Expense Comparative 24 Administrative Expense Variance Analysis 25

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, 2014 ASSETS: Year to Date 2014 Year to Date 2013 Investments - at Fair Value Corporate Stocks * $1,643,655,970 $1,476,437,504 Corporate Obligations * 322,460, ,977,565 United States Government and Government Agency Obligations * 271,238, ,126,462 Insurance Company Contracts * 11,255,959 13,182,608 Common Collective Trusts * 545,900, ,088,851 Limited Partnerships * 425,187, ,440,139 Mutual Funds * 348,423, ,136,290 Real Estate * 21,129,820 21,836,596 REITS and REOCS * 64,114,423 55,753,818 Short-term Investments 253,724, ,956,246 Foreign Obligations * 568, ,878 Total Investments 3,907,659,238 3,431,494,957 Receivables Contributions * 45,442,667 44,087,020 Employer Withdrawal Liability - Net * 35,688,722 22,476,773 Accrued Interest and Dividends 5,894,915 6,110,990 Receivable for Investment Securities Sold 18,838, ,059,515 Due from Affiliated Organizations * 624, ,801 Real Estate A/R 35,715 9,685 Total Receivables 106,524, ,161,784 PREPAID EXPENSES, DEPOSITS AND OTHER ASSETS 3,333,805 3,428,684 CASH NBF Escrow Accounts 4,462,416 2,279,732 Real Estate Cash Account 755, ,903 Operating NPF Cash Accounts 45,102,889 54,397,757 Total Cash 50,321,013 57,407,392 Total Assets 4,067,838,300 3,686,492,817 LIABILITIES AND NET ASSETS: Accounts Payable and Withholdings 4,010,268 3,377,206 Unprocessed/Undistributed Contributions (16,649,480) (284,051) Settlement of Securities Purchased 75,596, ,107,317 Real Estate Liabilities & Notes Payable * 7,666,002 7,734,665 Assets Restricted for 401(H) Medical Benefit Total Liabilities 70,623, ,935,136 Net Assets Available for Pension Benefits 3,997,214,969 3,465,557,681 * See accompanying schedules. Notes: Included within the reported assets are the following Securities on Loan: Corporate Stocks $413,476,592, Corporate Bonds $38,315,603 and Government Bonds $126,843,228. These are Internal Financial Statements and therefore, are subject to change. Page 1

3 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, 2014 ADDITIONS: Year to Date 2014 Year to Date 2013 Investment Income Net Appreciation in Fair Value of Investments * $129,518,973 $222,236,490 Interest and Dividend Income 31,670,947 29,481,759 Rental Income 223, , ,412, ,323,926 Less Investment Expense * 5,547,073 4,769,598 Total Investment Income (Loss) - Net 155,865, ,554,328 Contributions Employer Contributions * 209,616, ,244,419 Liquidated Damages 568, ,187 Withdrawal Liability * 1,531,294 4,433,416 Total Contributions 211,716, ,097,022 Other Additions Settlement income * 244, ,536 Other income 4, , ,586 Total Additions 367,826, ,900,935 DEDUCTIONS: Benefits Pension Benefits 218,234, ,912,381 COLA Benefits ,137 Death Benefits 108, ,717 Total Benefits 218,343, ,070,234 Administrative Expenses - Net * 6,102,866 6,654,144 Total Deductions 224,446, ,724,378 Net Increase/Decrease 143,380, ,176,557 Net Assets Available for Pension Benefits Beginning of Year 3,853,834,243 3,246,381,124 End of Period 3,997,214,969 3,465,557,681 * See accompanying schedules. Note: These are unaudited internal financials and therefore subject to change. Page 2

4 SHEET METAL WORKERS' NATIONAL PENSION FUND Contribution Income ,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 January February March April May June July August September October November December Liquidated Damages 960 5, , ,801 70,872 51,879 Employer Contributions 36,349,541 27,362,867 39,907,646 39,637,937 34,612,110 31,746,369 Employer Contributions Liquidated Damages Employer Contributions include: employer contributions and liquidated damages. Page 3

5 SHEET METAL WORKERS' NATIONAL PENSION FUND Contribution Income vs. Benefit Payments ,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 January February March April May June July August September October November December Contributions 36,350,501 27,368,427 40,244,455 39,740,738 34,682,982 31,798,248 Benefit Payments 36,235,154 36,188,565 36,614,936 36,228,080 36,849,657 36,226,921 Contributions Benefit Payments Employer Contributions include: employer contributions, and liquidated damages. Pension Benefit Payments include: pension and annuity payments for John Hancock, Ullico, Aetna, COLA subsidy, death benefits, and pension and annuity interest expense. Page 3a

6 SHEET METAL WORKERS' NATIONAL PENSION FUND Investment at Fair Market Value Three Year Comparison 4,500,000,000 4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000, ,000,000 0 January February March April May June July August September October November December Page 4

7 . Sheet Metal Workers' National Pension Fund Schedule of Corporate Stocks at 6/30/2014 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 6/30/2014 6/30/2014 6/30/2014 5/31/2014 6/30/2014 BNY Mellon Custodian Accounts Apex Capital Mar-13 61,726,961 75,326,672 13,599,711 9,827,863 3,771,849 Blackrock * Feb , ,500 (675) (4,725) 4,050 Cambiar Feb-04 78,606,473 99,746,113 21,139,640 19,671,732 1,467,908 Columbia LC Growth Mar-12 90,029, ,114,025 25,084,060 22,368,803 2,715,257 Cramer, Rosenthal, McGlynn Oct ,414,463 (16,414,463) Delaware Mar-05 55,470,549 81,167,614 25,697,065 22,816,905 2,880,160 Delaware International May ,063, ,165,235 3,101,603 1,115,816 1,985,787 Harding Loevner Sep ,581, ,706,362 28,124,987 26,848,072 1,276,914 HGK Feb-08 72,631,949 98,770,146 26,138,197 23,407,140 2,731,056 IWS Russell MC Value Jun ,803, ,243, , ,549 Janus Large Cap May ,220,642 (12,220,642) MCM Mid Cap Index Mar-03 97,783, ,084,491 50,300,855 46,872,653 3,428,202 MCM Small Cap Index Mar-03 89,130, ,453,073 39,322,585 35,121,211 4,201,375 Met West Core* Sep ,000 1,124, , ,425 3,788 NFJ Mar-03 57,389,137 77,954,063 20,564,926 18,553,328 2,011,598 NFJ Large Cap Mar-11 66,368,395 87,306,865 20,938,470 18,409,810 2,528,660 Penn Capital Jan-06 54,863 55, (624) PIMCO * Jul-08 4,145,000 4,245, ,825 1,472,264 (1,371,439) SEIX* Apr , , , ,994 5,616 Thornburg Sep Wells Capital Mid Cap Jul-03 92,441, ,601,481 21,159,519 18,665,324 2,494,195 Westfield Large Cap Growth Oct-06 79,521, ,580,389 34,059,079 31,896,509 2,162,570 Westfield Small Cap Mar-03 68,209,509 87,034,909 18,825,399 14,668,598 4,156,801 General Fund Cash Account Jan (2)??? Securities Lent out to Third Parties Mar Total Corporate Stocks 1,292,627,977 1,641,559, ,931, ,672,739 8,259,166 Direct Investments Union Bank & Trust 296, , , ,416 0 Union Financial Corp. 446,797 1,222, , ,100 0 Total for Direct Investments 743,572 2,096,089 1,352,516 1,352,516 0 Total Corporate Stocks at 6/30/2014 1,293,371,549 1,643,655, ,284, ,025,255 8,259,166 * Includes Preferred Stock, permissible in the Advisors Investment Guidelines. Page 5

8 Sheet Metal Workers' National Pension Fund Schedule of Corporate Bonds at 6/30/2014 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 6/30/2014 6/30/2014 6/30/2014 5/31/2014 6/30/2014 BNY Mellon Custodian Accounts Blackrock Feb-08 67,229,088 66,368,115 (860,973) (717,259) (143,714) Met West Core Fixed Sep-09 52,683,415 56,096,873 3,413,458 3,446,788 (33,330) Penn Capital Jan-06 40,992,836 43,031,811 2,038,974 2,067,574 (28,600) PIMCO Jul-08 71,660,088 77,892,131 6,232,043 4,719,647 1,512,397 Sage Advisory Oct-13 25,914,329 25,753,283 (161,046) (141,537) (19,509) Seix Investment Advisors Apr-02 51,446,640 53,317,808 1,871,168 1,843,923 27,246???? Securities Lent out to Third Parties Mar Total Corporate Obligations at 6/30/ ,926, ,460,021 12,533,625 11,219,136 1,314,489 Page 6

9 Sheet Metal Workers' National Pension Fund Schedule of U.S. Government and Foreign Government Obligations at 6/30/2014 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 6/30/2014 6/30/2014 6/30/2014 5/31/2014 6/30/2014 BNY Mellon Custodian Accounts Blackrock Feb-03 99,176,449 99,483, , ,292 (191,111) Met West Core Fixed Sep-09 69,671,955 70,631, , ,385 (23,141) PIMCO Jul-08 90,990,336 92,310,103 1,319,768 1,645,369 (325,601) Sage Advisory Oct-14 8,815,513 8,813,966 (1,547) 8,106 (9,653) Total Government Bonds at 6/30/ ,654, ,238,899 2,584,646 3,134,152 (549,506) BNY Mellon Custodian Accounts Blackrock Feb , , , ,268 8,198 Total Foreign Government Notes at 6/30/ , , , ,268 8,198 Page 7

10 Sheet Metal Workers' National Pension Fund Schedule of Insurance Company Contracts at 6/30/2014 John Hancock John Hancock AETNA AETNA ULLICO Total GAC 1022 (IPG) Separate Account 14 GAC 1433 GAC /30/2014 Balance at 12/31/2013 5,075,101 6,137, , , ,852 12,111,144 Investment Income 218,070 8, ,520 Pension Benefits Paid (1,185,125) (17,751) (14,360) (4,870) (1,222,107) Death Benefits Paid (45,185) (45,185) Transfer to/from Separate Acct 697, ,525 Transfer to/from General Acct (697,525) (697,525) Realized Gain/Loss - Unrealized Gain/Loss 269, ,387 Investment Mgt Fee (29,750) (29,750) Transfer from Wells Fargo Acct # Transfer to Wells Fargo Acct # Administrative Charge (54,052) (54,052) Total Insurance Company Contracts at 6/30/2014 4,706,334 5,679, , , ,432 11,255,959 Page 8

11 Common Collective Trust For the Six Months Ending June 30, 2014 Beginning Cost Balance 12/31/13 Reinvested Income Ending Cost Balance 6/30/2014 6/30/2014 Allowance 2013 Allowance 2014 Unrealized Gain/Loss Multi-employer Property Trust 7,603,493 7,603,493 47,143,570 44,394,442 2,749,128 AFL-CIO S&P Index Fund 337,443, ,443, ,709, ,119,387 32,589, ,047, ,047, ,852, ,513,829 35,338,884 Total Page 9

12 SHEET METAL WORKERS' NATIONAL PENSION FUND Limited Partnerships For the Six Months Ending June 30, 2014 Beginning Cost Balance 12/31/2013 Total 2014 Additions/ Disbursements Investments Cost Balance 6/30/2014 Unrealized Gain/(Loss) 2014 Realized Gain/(Loss) Ending Market Balance 6/30/2014 Hedge Funds Austin Capital All Seasons Offshore Fund Ltd Mesirow Institutional Multi LTD 90,000,000 15,000, ,000,000 41,822, ,822,497 Berens Capital ERISA Fund 33,000,000 33,000,000 11,666,544 44,666,544 Private Advisors Hedged Equity Fund 68,389,587 68,389,587 29,687,769 98,077,356 Abbey Capital Fund 50,000,000 50,000,000 (19,035,584) 30,964,416 Vontobel Global Emerging Markets 35,000,000 35,000,000 8,584,121 43,584,121 Subtotal for Hedge Funds 276,389,587 15,000, ,389,587 72,725, ,114,934 Invesco US Buy Out 1,114,647 1,114,647 Invesco Non US 253, ,089 Invesco Venture 1,575,497 (2,305) 1,573,192 62,241 1,635,433 Subtotal for Invesco 1,575,497 (2,305) 1,573,192 1,429,977 3,003,169 Cramer, Rosenthal & McGlynn Cerberus Institutional Partners 91,609 91,609 DCM III, LP 521,039 (78,720) 442,319 (115,083) 327,236 Freemont Partners III, L.P. 955,669 1, ,752 36, ,657 Prism Venture Partners IV LP Quadrangle (Access) Capital Partners 65,670 65,670 (19,997) 45,673 Quadrangle (Offshore) Capital Partners 75,648 75, ,896 Quadrangle Capital Partners 77,731 77,731 TCW/Crescent Mezzanine Partners TL Ventures V. LP 517, ,557 (376,410) 141,147 Willis Stein & Partners III, LP 136, ,965 (10,023) 50, ,942 Ripplewood Partners II, LP 5,097 (3,740) 1,357 1,357 MHR Institutional Advisors II 1,230,331 1,230,331 Subtotal for Cramer 2,277,644 (81,377) 2,196, ,484 50,102 3,111,751 Other Limited Partnerships AEW Partnership 14,923,672 (1,161,852) 13,761,820 7,880,572 21,642,392 Goldman Sachs Private Equity Partners X Offshore 15,685, ,269 15,930,724 2,686,364 18,617,088 Private Advisors Small Company Buyout V 2,649,699 2,105,813 4,755,512 4,755,512 Townsend Real Estate 7,406,000 1,643,834 9,049, ,726 9,942,560 WPGVA Venture-Limited Partnership (1) Subtotal for Other Limited Partnerships 40,664,825 2,833,064 43,497,889 11,459,661 54,957,551 Total Limited Partnerships 320,907,553 17,749, ,656,935 86,530,469 50, ,187,404 Page 10

13 SHEET METAL WORKERS' NATIONAL PENSION FUND Mutual Funds Schedule For the Six Months Ending June 30, 2014 Beginning Cost Balance 12/31/13 Reinvested Income Ending Cost Balance 6/30/2014 6/30/2014 Allowance 12/31/13 Allowance 2014 Unrealized Gain/Loss AFL-CIO Housing Investment Trust $46,091,105 $356,899 $46,816,945 $1,844,537 $612,747 $1,231,791 Vanguard Accounts * 234,416,551 (36,418,647) 234,726,878 65,034,648 78,729,795 (13,695,147) 280,507,656 (36,061,748) 281,543,823 66,879,185 79,342,541 (12,463,356) * Vanguard Accounts are held at BNY Mellon: Vanguard EAFE Vanguard Emerging Markets Vanguard Growth Index Vanguard Value Index Page 11

14 SHEET METAL WORKERS' NATIONAL PENSION FUND Schedule of Real Estate Investments For the Six Months Ending June 30, 2014 Name and Location Acquisition Date Assets Liabilities Mortgage & Interest Payable Liabilities & Mortgage Payable Grant Street (Formerly FHLB) $13,522,739 ($61,970) ($7,326,201) ($7,388,171) Grant Street Office Corp December-91 Pittsburgh, PA Mercy Medical LLC 7,607,081 (277,831) (277,831) Mercy Medical Office LLC April-93 Total 21,129,820 (339,801) (7,326,201) (7,666,002) Page 12

15 SHEET METAL WORKERS' NATIONAL PENSION FUND Schedule of REITS and REOCS For the Six Months Ending June 30, Investment at Cost 6/30/ Investment at Market Value 6/30/ Allowance Chg in Mkt Value 6/30/ Allowance Chg in Mkt Value 5/31/ Unrealized Gain/Loss for Month Ended 6/30/2014 Clarion REIT $47,784,172 $64,114,423 $16,330,251 $16,052,977 $277,274 Page 13

16 Sheet Metal Workers' National Pension Fund Contribution Income For Period Ended 6/30/2014 Per Accounting Department Records Regular Contributions Adjustments for 401H Total deposits per bank (Cash basis) Deposited Legal & other Fees Contributions January 32,987, ,000 February 28,758, ,000 March 38,874, , ,000 April 36,475, , ,000 May 38,222,050 91, ,000 June 32,597, , ,000 July August September October November December Delinquent Contributions at 6/30/2014 4,409,314 Interest Income Received with Contributions Contributions Receivable at 6/30/ ,458, ,000 Prior Year Contributions Receivable (36,943,742) (575,000) Prior Year Delinquent Contributions Receivable (4,726,011) 211,112, ,650 3,450,000 Adjustments for Legal $ 873, ,986, ,657,572 Total Contributions Receivable at 6/30/ ,442,667 Contributions (Excluding 401H) 209,440, (H) Contributions 3,450, ,890,766 Less: 401(H) Benefits (3,274,296) Contributions per P&L 209,616,470 Page 14

17 SHEET METAL WORKERS' NATIONAL PENSION FUND FINANCE WITHDRAWAL LIABILITY REPORT AS OF 6/30/14 AMT. OF PRINCIPAL TOTAL TOTAL WITHDRAWAL INTEREST AMT. UNCOLLECTIBLE AMT. EMPLOYER NAME ER NUMBER LIABILITY RECEIVED RECEIVED AMT. DUE pre 2007 Major Reflector Prod , Major Reflector Prod , , Courtad Construction , , ,281 Metcraft, Inc ,778, ,757, , (0) 2,372, , ,245, , , American Sheet Metal , , Caudel Heating & AC , , CraftMasters Architectural Inc , , Intermountain Heating , , ITT Pure Flo , , J & L Inc ,443, , ,148, Phlag Mechanical , ,589 Pre Heat INC , , S M Services , , White Way Sign & Maintenance , , , ,605 3,199, ,593, ,387, , D Erectors Inc , , , Albany Metal Cannon Fabrication , , Century Engineering , , C J Muldoon & Sons , , , DVS Industries ,200, , , ,025, Empire Sheet Metal , , , Mahone Roofing , , , Majestic Products ,958, ,571, ,386, Owens Corning-Shared , , , Redbird Heating ,101, , ,087, Southern Mech , , , Wes Co Industries ,089, , , ,211 Witney Contractors ,180, ,180, ,319, , ,760, ,374, , ABB Paint Finishing ,096, ,999, , 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, ,146, Maximum Air Flow , , ,227 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 , , , ,334, ,817, ,475, , Aabbott Ferraro , , Acme Manufacturing ,416, ,750, , Acme Manufacturing ,596, ,546, , Acme Manufacturing ,049, ,017, , A&D Steel Equip , , A & H , , ALL-PRO , , American Sheet Metal , ,642 B T Mancini Braatz Heating , , Bendable Metalworks , , Bert Jensen & Sons ,547, ,547, Central Air , , Coastal Sheet Metal ,250, ,250, Environmental Balanc , , Flexmaster USA , , ,477 Page 15

18 AMT. OF PRINCIPAL TOTAL TOTAL WITHDRAWAL INTEREST AMT. UNCOLLECTIBLE AMT. EMPLOYER NAME ER NUMBER LIABILITY RECEIVED RECEIVED AMT. DUE Grays HVAC , , Independent Inc , , Libco Group , , , M & M Sheet Metal CO , , , Madison Industries , , Mustang Sheet Metal , , Quality Craftsman , , R C Kimbrel Roofing , , RD Herbert & Sons , , ,142 Sign Spec Inc ,590, , ,114 Signad Inc , , Thomco INC , , ,000 22,128, ,304, ,124, ,700, Ace Fabrication ,880, ,880, Action Air HTG & AC , , Aeromark Mechanical , , Boeser Inc , ,805 Cool Sheet Metal Inc ,002, ,702, ,300,252 Cronstroms Heating , , , EZ Vent , , Gibson Industrial , , Great Lakes Contract , , Grid Electric , , , L Bombace INC ,137, , ,984, Lee's Sheet Metal & A/C ,222, , ,221, Morrell Architectural , , , ,500 Nordquist Sign , , Preferred Sheet Metal , , RHB Installations , , Robert's Roofing & Siding ,648, ,648, Select Mechanical , , ST Paul HTG , , (0) United Sign Corp , ,131 United Sign Corp , Valparaiso , , Wilkinson Hi-Rise , , , ,548, , ,059, ,944, Star Washer Service , , ,300 Accurate Mech Contra , , ,867 Bobs Sheet Metal , ,115 Broadway National Sign ,347, , ,000,678 Champion Furnace ,928, ,928, Coil Tech Investment , , ,986 Grimm HTG , ,640 Holyoke Enterprises , , ,013 Larson Plumbing , , ,687 Pete Logan , , Romla Ventilator , , ,135 South Florida Sheet , ,000 Stranton Mechanical , ,123 Super Sky Products ,265, ,038, ,226,968 Texas Industrial Sheet Metal , ,626 TRS Mechanical , , ,236 9,105, ,609, ,673, ,822, Affordable Comfort , ,679 BVA Systems Tennes , , ,711 Camelot Construction , , ,213 Columbus Show Case ,628, ,628,864 D S M INC , ,564 Dan Yant INC , ,309 Delta Tool MFG , ,868 Eagle Ventilation , ,811 Eagle Ventilation , ,020 Genz-Ryan Plmg ,288, ,288,616 HA Thompson & Sons , , Henderson Brothers , , , Inseco Industries Inc , ,449 J D Indoor Comfort , , J R Henderson , ,881 Kleeve Heating & A/C , ,230 Ladder 3 Signs & Rig , , Lincoln Foodservice ,511, ,019, ,492,479 Major Metals , , Mike Volk Co ,539, , ,775 New England Metal , ,968 Pacific Sheet Metal 477, ,719 Penn Refridgeration ,364, ,227, ,443 Precise Refridgeration , , Rebholtz Mechanical , ,729 Restaurant Equipment , ,518 Page 16

19 AMT. OF PRINCIPAL TOTAL TOTAL WITHDRAWAL INTEREST AMT. UNCOLLECTIBLE AMT. EMPLOYER NAME ER NUMBER LIABILITY RECEIVED RECEIVED AMT. DUE Stevens Sheet Metal ,043, ,043,384 TNT Sheet Metal , ,482 Velocity Mechanical , ,128 WSM Manufacturing , , ,698, ,367, ,067, ,263, Everbrite LLC ,082, , ,054,382 Rado Enterprised Inc , ,152 1,435, , ,407, TOTALS 122,143, , ,270, ,184, ,688,722 TOTAL EMPLOYER WITHDRAWAL LIABILITY 122,143, Total Principle Amount Received (26,270,414.09) Total Uncollectible 6/30/2014 (60,184,161.43) Total 6/30/ ,688, Total Employer Withdrawal Liability as of 12/31/13 (119,995,779.58) Total Employer Withdrawal Liability as of 6/30/14 122,143, Revised as Uncollectible in 2014 (616,606.05) AMG Industries, Inc. (Charles Barber) TOTAL WITHDRAWAL LIABILITY INCOME 1,531, Page 17

20 SHEET METAL WORKERS NATIONAL PENSION FUND UNCOLLECTIBLE WITHDRAWAL LIABILITY ASSESSMENT 2014 June 2014 Uncollectible Amt Ace Fabrication Inc - Recommendation to be written off in This is the remaining amount to be $ (300,000) written off. Henderson Brothers - Counsel recommended write-off. $ (13,640.80) Mahone Roofing & SM Co - Company is no longer in business and has no remaining assets. Counsel $ (217,826) concluded collectibility is unlikely. Major Metals Inc - Local Union #38 has indicated that it has no evidence of Major Metals Inc operating $ (60,250) on a non-union basis in it's area. Williams A/C & Heating Inc - Company no longer in business and has no remaining assets. Counsel $ (24,889) recommended write-off. Total Uncollectible 2014 $ (616,606) Page 18

21 SHEET METAL WORKERS' NATIONAL PENSION FUND Due To/From Other SMW Organizations For the Six Months Ending June 30, 2014 Accidental Death & Dismemberment Plan $4,301 International Training Institute 226,012 Local Unions & Councils Pension Fund 65,255 Local Unions & Councils Pension Fund Canada 20,716 National Energy Management Institute Committee 5,172 National Supplemental Savings Plan (17,510) Occupational Health Institute Trust 4,281 Scholarship Fund 2,878 Sheet Metal Workers' International Association 2,256 Stabilization Agreement of the Sheet Metal Industry 305,933 Total Administrative Services Agreement 619,294 Accidental Death & Dismemberment Plan 5 International Training Institute 987 Local Unions & Councils Pension Fund 3,403 National Energy Management Institute Committee 290 National Supplemental Savings Plan 354 Occupational Health Institute Trust 3,054 Stabilization Agreement of the Sheet Metal Industry (3,341) Total Other 4,754 Page 19

22 Sheet Metal Workers' National Pension Fund Schedule of Income at 6/30/14 - Interest & Dividend Income Realized Gain/(Loss) Unrealized Gain/(Loss) TOTAL per F/S Balance at 03/31/14 - Gain(Loss) 13,617, ,689,941 (73,939,126) 47,368,752 BNY Mellon Accounts Apex Capital Mgmt 81, ,521 1,794,745 2,364,366 Blackrock 824, , ,241 2,050,557 Cambiar 408,442 1,564,874 2,290,902 4,264,218 Clarion REIT 660, ,440 3,148,981 4,303,765 Columbia LC Growth 100, ,048 1,453,972 1,684,821 CRM 331,208 20,697,451 (17,369,447) 3,659,212 Delaware Intl 1,127,979 (1,458,928) 3,101,603 2,770,654 Delaware 314,890 1,812,338 1,053,956 3,181,184 General Account #3 (STIF) 8,311 - (2) 8,309 Global Currents (Brandywine) Harding Loevner 1,669, ,727 4,915,653 6,843,529 HGK 592,055 1,105,490 4,440,504 6,138,049 IWS Russell Mid Cap 0-440, ,549 Janus Large Cap 81,442 14,043,431 (12,912,282) 1,212,591 Met West Core Fixed 946, , ,676 2,669,458 MCM Mid Cap Index 518,550 2,188,277 3,458,462 6,165,289 MCM Small Cap Index 429,863 2,739,131 (525,504) 2,643,490 NFJ 480,858 2,258, ,866 3,582,208 NFJ Large Cap 591,475 1,140,578 3,565,032 5,297,085 Penn Capital 784, ,327 43,822 1,284,110 Philadelphia International (Foreign) 8,462 - (4) 8,458 PIMCO 1,518, ,306 1,620,885 4,132,502 Sage Advisory 179,967 (37,580) (19,117) 123,270 Seix Investment Advisors 905, , ,743 1,566,740 Thornburg 319,754 21,282,212 (21,751,751) (149,786) Vanguard EAFE 2,889,415-3,873,994 6,763,409 Vanguard Emerging Markets 279,824-1,706,588 1,986,412 Vanguard Growth Index 207,263-4,088,588 4,295,851 Vanguard Value Index 257,543-1,618,871 1,876,414 Wells Mid Capital 82,085 3,945,555 (1,708,014) 2,319,626 Westfield Capital 113,841 2,108,033 (2,127,845) 94,028 Westfield Large Cap 360,938 1,955,015 3,004,551 5,320,504 Other Types of Income ** 977,682-23,942,533 24,920,216 Total Income at 6/30/14 31,670, ,509,267 (57,990,294) 161,189,921 Total Net Appreciation in fair value of investments 129,518,973 ** Note that Other Types of Income includes all income from Hancock Insurance contracts, AETNA Insurance contracts, ULLICO, Limited Partnerships Interest Income, Wells Fargo, Sandia Mortgage, interest on Lockbox deposits, MEPT, AFL-CIO HIT, and other miscellaneous investment income. Page 20

23 Sheet Metal Workers' National Pension Fund Schedule of Investment Expenses at 6/30/2014 Balance Expenses 5/31/2014 During 6/30/2014 Investment Manager Expenses * 3,564, ,592 4,321,817 Custodian Expenses * 71,150 14,230 85,380 Graystone 767, , ,258 Gallagher Fiduciary Advisors 61,078-61,078 Zeno Consulting Group 6,250-6,250 Commissions and Foreign Expense Fees 95,281 55, ,288 Total Investment Expenses at 6/30/2014 4,565, ,045 5,547,072 * See accompanying Schedule detailing Manager Fees by investment and Custodian Fees Page 21

24 Sheet Metal Workers' National Pension Fund Schedule of Manager and Custodian Fees at 6/30/2014 Manager Fees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Apex Capital Mgmt 79,030 82, ,372 Blackrock 76,645 78, ,136 Cambiar 89,045 93, ,927 Clarion REIT 74,377 80, ,831 Cramer, Rosenthal, McGlynn 180, , ,363 Columbia LC Growth 111, , ,082 Delaware 98, , ,477 Delaware International 0 94,823 94,823 Harding Loevner 153, , ,145 HGK 84,204 90, ,775 Janus 63,289 57, ,284 MET West - Fixed 56,900 58, ,649 NFJ 116, , ,840 NFJ Large Cap 78,349 84, ,581 Penn Capital 52,333 54, ,080 PIMCO 126, , ,015 Sage Advisory 21,544 21,830 43,374 Seix 56,232 58, ,621 Thornburg 137,292 35, ,410 Wells Capital Mid Cap 174, , ,160 Westfield Small Cap 134, , ,244 Westfield Large Cap Growth 121, , ,195 Investment Mgr fees - AEW Rebate (25,000) (25,000) Mellon Capital Mgmt Index Funds 31,161 27,767 58,928 Invesco Fund of Funds 2, ,490 Hancock Separate Account 14 15,317 14,433 29,750 Graystone Consulting Grant Street Office Corporation 9,000 9,000 18,000 Mercy Health Care Center 8,786 7,480 16,266 Balance as of 6/30/2014 2,128,252 2,193, ,321,818 Custodian Fees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total BNY Mellon 42,690 42, ,380 Balance as of 6/30/ ,690 42, ,380 Page 21a

25 Sheet Metal Workers' National Pension Fund Schedule of Settlement Income at 6/30/2014 Settlement 6/30/2014 AMBAC Financial Group Inc 25 Authrocare Corp 1,890 Barrick Gold Corp 25 Bear StearnsCos Inc 451 Broadcom Corp 669 CIT Group Inc 40 Colonial Bancgroup Inc 328 Delaware 1,057 Doral Financial Corp 22 El Paso Corp 6,922 Electronic Data Sys Corp 1,622 Finova Group Inc 178 Healthsouth Corp 17,323 Immucor Inc 544 Juniper Networks Inc 80 Maxim Integrated Funds 10 MBIA Inc 4 Micron Technology Inc 12 NBTY Inc 48 Nighthawk Radiology Holdings 623 Orient Paper 38,336 Perrigo Co 1,131 Pharmacia Corp 18,373 St. Paul Travelers Companies 173 Wachovia Corp 148,668 Washington Mutual Inc 762 Woodruff Fair Fund 17 Worldcom Inc 4,770 Wyeth 235 Total Settlement 6/30/ ,334 Page 22

26 SHEET METAL WORKERS' NATIONAL PENSION FUND SCHEDULE OF ADMINISTRATIVE EXPENSES For the Six Months Ending June 30, 2014 June 2014 June 2013 NPF Budget YTD Year to Date Curr Year Year to Date Last Year Year to Date Variance Actuarial $21,250 $21,250 $202,500 $127,500 $250,065 $122,565 Admin Services - Hancock/Ullico 8,959 10,110 57,000 54,052 60,458 6,406 Admin Services Admin Services - SASMI 6,000 9,750 21,000 12,000 19,500 7,500 Audit/Accounting Fees 38,000 35,000 48,000 38,000 35,000 (3,000) Bank Charges 4,486 2,905 66,000 47,857 47,718 (139) Business/Travel 1,261 1,200 10,700 5,419 2,735 (2,683) Computer Processing 98, , , , , ,058 Computer Software/Hardware/Supplies 6,055 17,455 20,000 19,086 31,835 12,749 Consultant Fees 7,615 32, ,000 62, , ,990 Dues 1,465 2,503 7,500 5,187 7,979 2,792 Employee Benefits 144, , , , ,588 4,513 Equipment/Equip Maint/Furniture 7,527 10,064 48,250 18,348 18, Fiduciary Insurance 40,897 40, , , , Insurance 3,916 4,398 28,443 29,177 20,458 (8,718) Legal - Outside Delinq Counsel 116, , , , ,577 (46,464) Legal Fees 59,560 26, , , ,174 (40,512) Legal Fees Reimbursed (50,925) (9,385) (133,500) (328,879) (139,792) 189,087 Local Union Collection Services 20,960 34,654 98,142 62,588 95,284 32,696 Miscellaneous 4, ,000 11,039 1,564 (9,474) Office Space Lease 53,106 53, , , ,636 Office Supplies 2,815 4,516 40,500 16,709 18,957 2,248 Payroll Audits 44,453 99, , , ,873 (27,583) PBGC 136, , , , ,280 Postage/Delivery/Shipping 58,890 75, , , ,623 (14,821) Printing 94,828 9, , ,617 92,953 (113,664) Records Retention ,068 6,038 6, Renovations (8403 Arlington Blvd) 8,788 8,788 Seminars/Training 2, ,250 4,816 11,510 6,694 Soc Sec employment verification 42 21, ,000 67,856 Subscriptions/Publications 424 2,112 23,783 6,504 26,015 19,511 Taxes 22,748 21, , , ,992 (7,532) Trustee Expense (749) 30,400 30,636 17,063 (13,574) Voice and Data Lines 9,079 2,434 37,832 56,458 31,807 (24,651) Wages 314, ,215 2,043,351 1,936,631 1,891,802 (44,828) Sub - Total 1,280,470 1,328,421 7,592,386 6,984,900 7,369, ,551 Less: Admin Reimb from Other SMW Org (151,517) (123,276) (742,330) (882,034) (715,307) 166,727 TOTAL 1,128,953 1,205,145 6,850,056 6,102,866 6,654, ,278 Page 23

27 Sheet Metal Workers' National Pension Fund Schedule of Electronic Reporting/Contribution Collection Fees at 6/30/14 Balance Expenses 3/31/2014 During 2nd 6/30/2014 Local 10 (St. Paul, Minnesota) 8,500 18,482 26,982 Local 33 (Cleveland, Ohio) 8,500 (14,027) (5,527) Local 80 4,185 3,400 7,585 Local 162 and 104 (Northern California) 16,442 17,106 33,548 Total Collection Fees at 6/30/ ,627 24,962 62,589 Page 23a

28 SHEET METAL WORKERS' NATIONAL PENSION FUND Administrative Expenses Year-to-Date 2014 versus 2013 Actuarial Computer Processing Consultant Fees Legal Outside Delinq Legal Fees Local Union Collection Services Payroll Audits Postage/Delivery/Shipping Printing Soc Page Sec 15Employment Verifiction Voice & Data Lines Wages -500, ,000 1,000,000 1,500,000 2,000,000 2,500, Page 24

29 SHEET METAL WORKERS NATIONAL PENSION FUND ADMINISTRATIVE EXPENSE VARIANCE REPORT June 2014 Actuarial Decrease due to services rendered regarding Rehab Plan Projections in Business Travel Increase due to NPF presentation to local union leaders at AFL-CIO Legislative Conference. Computer Processing Decrease due to delivery of DRG remittance system in 2013 and negotiated schedule for phase 2 development in Computer Software/Hardware/Supplies Decrease due to network upgraded in Consultant Fees Decrease due to work in connection with Great Plains Integration/new Great Plains companies in AP workflow. Dues Decrease due to Council of Inst. Investors dues discontinued in 2013 Insurance Increase due to refund received in 2013 based on payroll and claim experience. Legal Outside Delinq. Increase due to a rise in delinquency collections, and the inclusion of SASMI delinquency expenses being reimbursed via ASA. Legal Fees Decrease due to HIPPA compliance, Puerto Rico tax compliance and services rendered for Courtad Construction, and Aeromark Mechanical withdrawal liability cases in Local Union Collection Services Decrease due to Local 100 fees ended Payroll Audits Increase due to a higher number of audits completed year to date compared to last year. Postage/Delivery/Shipping & Printing Increase due to change in zone status and changes to the Plan Document prompted by the zone status change. Seminar/Training Decrease due to purchase of HIPAA Online Training, Certified HIPAA Security and ICW BCTD Event in Washington, DC 2013 Soc Sec employment verification Decrease due to earnings requests on behalf of 1,700 retirees in Subscriptions/Publications Decrease due to termination of West Group Payment in Trustee Meeting Increase due to trustee meeting in Fort Lauderdale, FL in 2014 vs. meeting in Fairfax, VA in 2013 Voice and Data Lines Increase due to overlapping fees during data center changeover and increase in phone activity and related costs after the DRG billing system went live. Page 25