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 TWELVE MONTHS ENDED DECEMBER 31, 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 Total Contribution Income vs. Benefits Paid 3 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 Loans 8 Schedule of Insurance Contract Investments 9 Schedule of Common Collective Trusts 10 Schedule of Limited Partnerships 11 Schedule of Mutual Funds 12 Schedule of Real Estate Investments 13 Schedule of REITS and REOCS 14 Schedule of Contributions 15 Schedule of Withdrawal Liability 16 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 Twelve Months Ending December 31, 2010 Year to Date Year to Date ASSETS: Investments - at fair value Corporate stocks * $1,970,678,201 $1,724,574,214 Corporate obligations * 281,565, ,506,506 United States Government and Government Agency Obligations 258,679, ,755,099 Loans 2,645 6,754 Insurance company contracts * 21,939,832 24,907,969 Common collective trusts 39,300,997 34,501,113 Limited Partnerships * 239,865, ,588,518 Mutual funds 42,532,926 40,066,775 Real Estate * 43,524,427 41,987,112 REITS and REOCS * 71,762,517 46,170,112 Short-term investments 132,219, ,190,858 Foreign obligations * 517,987 5,472,133 Total Investments 3,102,589,412 2,805,727,161 Receivables Contributions * 38,870,584 41,797,226 Employer withdrawal liability - net 31,349,989 23,837,533 Accrued interest and dividends 6,913,916 7,510,431 Receivable for investment securities sold 13,058,055 44,542,554 Due from affiliated organizations 199, ,662 Real Estate A/R 462, ,273 Total Receivables 90,854, ,980,678 PREPAID EXPENSES, DEPOSITS AND OTHER ASSETS 3,591,775 3,590,736 CASH NBF Escrow Accounts 3,047,943 4,068,422 Real Estate Cash Account 3,087,914 1,417,503 Operating NPF Cash Accounts 57,669,132 40,195,316 Total cash 63,804,989 45,681,241 Total Assets 3,260,840,845 2,972,979,816 LIABILITIES AND NET ASSETS: Accounts Payable and Withholdings 1,092, ,427 Unprocessed/Undistributed Contributions (1,180,299) (161,129) Settlement of Securities Purchased 115,419, ,406,184 Real Estate Liabilities & Notes Payable * 15,879,885 16,043,973 Assets Restricted for 401(H) Medical Benefit 5,260 47,498 Total Liabilities 131,216, ,284,952 Net Assets Available for Pension Benefits 3,129,624,015 2,835,694,864 * See accompanying schedules. Notes: Included within the reported assets are the following Securities on Loan: Corporate Stocks $324,084,312, Corporate Bonds $19,851,584, and Government Bonds $11,818,539 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 Twelve Months Ending December 31, 2010 Year to Date Year to Date Investment Income Net appreciation in fair value of investments $341,407,388 $501,386,387 Interest and dividend income 63,878,587 65,261,628 Rental Income 2,317,519 3,836, ,603, ,484,206 Less investment expense * 10,517,539 8,557,628 Total investment income (loss) -net 397,085, ,926,578 Contributions Employer contributions * 305,119, ,355,474 Liquidated damages 537, ,907 Withdrawal liability 14,008,832 1,712,254 Total Contributions 319,665, ,807,635 Other additions Settlement income 603, , , ,925 Total Additions 717,355, ,903,139 DEDUCTIONS Benefits Pension Benefits 397,954, ,604,951 COLA Benefits 16,723,662 17,143,586 Death Benefits 492, ,102 Total Benefits 415,170, ,164,638 Administrative expenses - net * 11,924,473 12,410,911 Total Deductions 427,094, ,575,550 Net increase/decrease 290,260, ,327,589 Net assets available for pension benefits Beginning of year 2,839,363,367 2,368,367,275 End of period 3,129,624,015 2,835,694,864 * 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 vs. Benefit Payments ,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 January February March April May June July August September October November December Employer Contributions Pension Benefit Payments Employer Contributions include: employer contributions, liquidated damages, and withdrawal liability. Pension Benefit Payments include: pension and annuity payments for John Hancock, Ullico, Aetna, COLA subsidy, death benefits, and pension and annuity interest expense. Page 3

5 SHEET METAL WORKERS' NATIONAL PENSION FUND Investment at Fair Market Value Three Year Comparison 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

6 Sheet Metal Workers' National Pension Fund Schedule of Corporate Stocks at 12/31/10-28,874,907 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 12/31/ /31/ /31/ /30/ /31/2010 Bony Custodian Accounts Wells Capital Mid Cap Jul-03 73,644, ,519,800 28,874,907 23,960,325 4,914,582 Cambiar Feb-04 92,929, ,305,444 20,375,794 12,617,323 7,758,471 Cramer, Rosenthal, McGlynn Oct-06 74,032,584 86,940,287 12,907,704 6,892,260 6,015,444 Vanguard Emerging Markets Sep-09 25,271,750 35,555,821 10,284,071 8,359,540 1,924,531 Janus Large Cap May-07 66,833,904 84,282,210 17,448,306 13,960,950 3,487,357 Philadelphia International Jan ,762, ,362,753 14,600,376 4,220,822 10,379,553 Delaware Mar-05 42,771,537 56,486,640 13,715,103 10,912,670 2,802,433 Seix Investment Advisors Apr , , , ,372 4,829 Wells Capital Large Cap May-07 73,904,272 95,174,397 21,270,126 17,626,305 3,643,821 Westfield Large Cap Growth Oct ,160, ,953,190 27,793,185 20,873,655 6,919,530 Brandywine Asset Mgmt/Global Currents * Apr-01 95,453, ,080,025 12,626,194 6,097,654 6,528,540 Thornburg Sep-09 99,228, ,446,615 22,218,274 14,396,392 7,821,882 Blackrock Feb , ,794 37,794 38,340 (546) Penn Capital* Jan , ,348 55,673 40,621 15,053 NFJ Mar-03 48,612,954 62,368,809 13,755,855 10,684,107 3,071,748 Wall Street Mar-03 48,516,326 63,763,834 15,247,508 13,977,610 1,269,898 Westfield Small Cap Mar-03 56,972,902 73,135,199 16,162,297 10,308,644 5,853,652 S&P 500 Index Mar ,174, ,814,778 26,640,091 8,361,856 18,278,236 Mid Cap Index Mar ,983, ,843,178 18,859,602 13,046,664 5,812,938 Small Cap Index Mar-03 87,615,234 97,960,197 10,344,962 4,152,003 6,192,960 HGK Feb-08 79,328,458 85,380,348 6,051, ,671 5,322,219 MET West Feb-08 88,492, ,116,669 14,624,442 8,217,181 6,407,261 PIMCO Jul-08 1,443,707 2,301, , ,448 13,110 General Fund Cash Account Jan (2)??? Securities Lent out to Third Parties Mar Total of Bank of New York Accounts 1,643,573,017 1,968,581, ,008, ,571, ,437,498 Direct Investments Union Bank & Trust 296, , , ,114 5,461 Union Financial Corp. 446,797 1,222, , , ,803 Total for Direct Investments 743,572 2,096,247 1,352,675 1,238, ,264 Total Corporate Stocks at 12/31/10 1,644,316,589 1,970,678, ,361, ,809, ,551,762 * Includes Preferred Stock, permissible in the Advisors Investment Guidelines. Page 5

7 Sheet Metal Workers' National Pension Fund Schedule of Corporate Bonds at 12/31/10 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 12/31/ /31/ /31/ /30/ /31/2010 Bony Custodian Accounts Seix Investment Advisors Apr-02 63,465,411 68,799,925 5,334,514 4,627, ,187 Met West Core Fixed Sep-09 48,150,582 51,525,046 3,374,464 3,880,734 (506,270) Blackrock Feb-08 56,825,974 56,629,782 (196,192) 122,818 (319,010) Penn Capital Jan-06 44,988,089 50,908,221 5,920,132 4,928, ,627 PIMCO Jul-08 49,062,138 53,702,255 4,640,117 4,196, ,936???? Securities Lent out to Third Parties Mar Total Corporate Obligations at 12/31/10 262,492, ,565,228 19,073,035 17,755,565 1,317,470 Page 6

8 Sheet Metal Workers' National Pension Fund Schedule of U.S. Government and Foreign Government Obligations at 12/31/10 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 12/31/ /31/ /31/ /30/ /31/2010 Bony Custodian Accounts Met West Core Fixed Sep-09 66,231,273 67,471,244 1,239,971 1,946,222 (706,251) Blackrock Feb-03 49,268,063 48,731,385 (536,678) 124,315 (660,994) PIMCO Jul ,279, ,476,858 (803,116) 1,670,752 (2,473,868)????? Securities Lent out to Third Parties Mar Total Government Bonds at 12/31/10 258,779, ,679,487 (99,823) 3,741,289 (3,841,112) Bony Custodian Accounts Blackrock Feb , ,987 79, ,004 (28,338) Total Foreign Government Notes at 12/31/10 438, ,987 79, ,004 (28,338) Page 7

9 Sheet Metal Workers' National Pension Fund Schedule of Loans at 12/31/10 Investment Principal Adjustment Investment Investment Allowance at Cost Payments made in for at Cost at Market Value Chg in Mkt Value 12/31/ Delinquencies 12/31/ /31/ /31/2010 Sandia Mortgage Series 1991-B Class B 9,125 1,713 $ 7,412 8, Sandia Mortgage Series 1991-A Class C 26,550 6,957 $ 19,592 (433) (20,025) Sandia Mortgage Series 1991-A Class C 210,125 45,852 $ 164,273 (5,038) (169,311) Total Loans at 12/31/10 245,801 54,523 0 $ 191,278 2,645 (188,632) Page 8

10 Sheet Metal Workers' National Pension Fund Schedule of Insurance Company Contracts at 12/31/2010 John Hancock John Hancock AETNA AETNA ULLICO Total GAC 1022 (IPG) Separate Account 14 GAC 1433 GAC /31/10 Balance at 12/31/09 10,785,748 12,969, , , ,870 24,907,969 Investment Income 748,543 22, ,008 Void Issues - Pension Benefits Paid (4,979,391) (55,623) (41,781) (18,996) (5,095,791) Death Benefits Paid (150,662) (150,662) Transfer to/from Separate Acct 2,736,659 2,736,659 Transfer to/from General Acct (2,736,659) (2,736,659) Realized Gain/Loss - Unrealized Gain/Loss 986, ,863 Investment Mgt Fee (123,552) (123,552) Transfer from Wachovia Acct # , , ,017 Transfer to Wachovia Acct # (22,331) (22,331) Transfer from Wachovia Acct # Transfer to BONY STIF Account. - Administrative Charge (161,002) (2,688) (163,689) Total Insurance Company Contracts at 12/31/10 9,502,723 11,403, , , ,651 21,939,832 Page 9

11 National Pension Fund Collective/Common Trust For the Twelve Months Ending December 31, 2010 Beginning Ending Ending 2010 Cost Balance Reinvested Cost Balance 12/31/10 Market 12/31/09 Unrealized 12/31/09 Income 12/31/10 Allowance Balance Allowance Gain/Loss Multi-employer Property Trust $7,603,482 $6 $7,603,488 $31,697,509 $39,300,997 $26,897,631 $4,799,878 Total 7,603, ,603,488 31,697,509 39,300,997 26,897,631 4,799,878 NPF Collective Page 10

12 National Pension Fund NPF Limited Partnerships For the Twelve Months Ending December 31, 2010 Total Beginning 2010 Investment 2010 Ending Cost Balance Additions/ Cost Balance Unrealized Realized Market Balance 12/31/09 Disbursements 12/31/10 Gain/(Loss) Gain/(Loss) 12/2010 Hedge Funds Austin Capital All Seasons Offshore Fund Ltd $14,990,167 ($5,502,912) $9,487,255 ($2,437,119) $7,050,136 Mesirow Institutional Multi LTD 65,000,000 65,000,000 24,048,283 89,048,283 Berens Capital Fund 33,000,000 33,000,000 5,245,286 38,245,286 Private Advisors Hedged Equity Fund 57,750,000 10,000,000 67,750,000 8,925,205 76,675,205 Subtotal for Hedge Funds 170,740,167 4,497, ,237,255 35,781, ,018,910 Invesco US Buy Out 33,881 (33,851) 30 1,489,539 1,489,569 Invesco Non US 567, ,864 Invesco Venture 3,293,238 (254,945) 3,038,293 (436,783) 2,601,510 Subtotal for Invesco 3,327,118 (288,796) 3,038,323 1,620,620 4,658,943 Cramer, Rosenthal & McGlynn Cerberus Institutional Partners 265, ,411 DCM III, LP 786,428 (127,389) 659,039 (144,680) 514,359 Freemont Partners III, L.P. 932,632 17, ,270 (32,278) 917,992 Prism Venture Partners IV LP 1,247,900 (164,901) 1,082,999 (594,668) 488,331 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 36, ,607 36,468 TCW/Crescent Mezzanine Partners 265, ,740 TL Ventures V. LP 538,907 24, ,140 (330,617) 232,523 Willis Stein & Partners III, LP 866,429 (114,458) 751, , ,355 Ripplewood Partners II, LP 604,148 (141,555) 462, , ,854 MHR Institutional Advisors II 484, , ,309 1,032,327 Subtotal for Cramer 5,747,391 (506,432) 5,240, , ,607 5,662,276 Other Limited Partnerships WPGVA Venture-Limited Partnership 2,379, ,000 2,619, ,006 3,413,755 Goldman Sachs Private Equity Partners X Off 3,064,711 4,534,224 7,598,935 (473,033) 7,125,902 AEW Partnership 7,985,857 7,985,857 7,985,857 Subtotal for Other Limited Partners 5,444,460 12,760,081 18,204, ,973 18,525,514 Total Limited Partnerships 185,259,136 16,461, ,721,078 38,144, , ,865,643 NPF Ltd Partnshp Page 11

13 National Pension Fund Mutual Funds Schedule For the Twelve Months Ending December 31, 2010 Beginning Ending Ending 2010 Cost Balance Reinvested Cost Balance 12/31/10 Market 12/31/09 Unrealized 12/31/09 Income 12/31/10 Allowance Balance Allowance Gain/Loss AFL-CIO Housing Investment Trust $38,638,573 $2,063,497 $40,702,071 $1,830,856 $42,532,926 $1,428,202 $402,654 Total 38,638,573 2,063,497 40,702,071 1,830,856 42,532,926 1,428, ,654 NPF Mutual Funds Page 12

14 National Pension Fund Schedule of Real Estate Investments For the Twelve Months Ending December 31, 2010 Mortgage & Liabilities & Name and Location Acquisition Date Assets Liabilities Interest Payable Mortgage Payable *Headquarters Building SMWNPF Headquarters Bldg LLC August-82 $23,640,000 ($242,888) ($7,510,357) ($7,753,245) Alexandria, VA Grant Street (Formerly FHLB) Grant Street Office Corp December-91 12,873,827 (87,034) (7,863,115) (7,950,149) Pittsburgh, PA **Mercy Medical LLC Mercy Medical Office LLC April-93 7,010,600 (176,491) (176,491) Coon Rapids, MN Total 43,524,427 (506,413) (15,373,472) (15,879,885) *Market value based on appraisal completed by Chaney and Associates 12/2010-1/2011. Page 13

15 Sheet Metal Workers' National Pension Fund Schedule of REITS and REOCS at 12/31/10 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 12/31/ /31/ /31/ /30/ /31/2010 Clarion REIT 57,482,790 71,762,517 14,279,727 12,056,212 2,223,514 Total REITS at 12/31/ ,482,790 71,762,517 14,279,727 12,056,212 2,223,514 Page 14

16 Sheet Metal Workers' National Pension Fund Contribution Income For Period Ended 12/31/10 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 25,676,779 (54,481) 575,000 August 26,367,457 (36,767) 575,000 September 26,107,065 (30,677) 575,000 October 29,241,593 (39,851) 575,000 November 26,200,972 (29,568) 575,000 December 28,818,770 (75,552) 575,000 Delinquent Contributions at 12/31/10 7,554,174 Allowance for Delinquent Contributions at 12/31/10 (3,021,670) Interest Income Received with Contributions Contributions Receivable at 12/31/10 33,763, ,000 Prior Year Contributions Receivable (37,177,107) (575,000) Prior Year Delinquent Contributions Receivable (4,045,119) 305,705,415 (790,045) 6,900,000 Adjustments for Legal (790,045) Adjustment for California Collection Fees 62, ,977,601 Total Contributions Receivable at 12/31/10 38,870,584 Contributions (Excluding 401H) 304,977, (H) Contributions 6,900, ,877,601 Less: 401(H) Benefits (6,758,506) Contributions per P&L 305,119,095 Page 15

17 SHEET METAL WORKERS' NATIONAL PENSION FUND FINANCE WITHDRAWAL LIABILITY REPORT AS OF 12/31/10 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, 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, ,103, ,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 , , Gremar Metal Industries , , Habco Hanna Heating & A/C , , HSMW-ACQ LLC , , , Hutchison Mechanical , , , Jasons Sheet Metal , , Metcraft, Inc ,778, ,644, , M W Sausse & Co , , , Paul Van Zeeland Mechanical , , Schweitzer Corp/Haden ,368, , ,682, Tru-Art Sign Co Inc , , , W G Heating & Cooling , , , Webster Heating & Air , , , West Coast ,274, , , ,964, ,235, ,864, ,864, 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, , ,184, , ,812, Page 16

18 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, ,673, , ,323, Owens Corning-Shared , , , Redbird Heating ,101, , ,079, , Southern Mech , , , Wes Co Industries ,089, , , , Witney Contractors ,180, ,180, ,319, ,284, ,661, ,373, 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, ,375, , LVI Corp , , Lafayette Sign Co , , M A P Heating & Cooling ,146, ,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 , , , ,334, ,737, ,921, , Aabbott Ferraro , , Acme Manufacturing ,416, ,750, , AD&D Steel Equip , , A & H , , ALL-PRO , , American Sheet Metal , , AUL Sheet Metal ,975, ,975, B T Mancini Braatz Heating , , Bendable Metalworks , , Bert Jensen & Sons ,547, ,547, Central Air , , Coastal Sheet Metal ,250, ,250, Desert Refridgeration , , Environmental Balanc , , Flexmaster USA , , , Grays HVAC , , Haimetal , , Holyoke Enterprises , , Independent Inc , , Libco Group , , M & M Sheet Metal CO , , , Madison Industries , , Mustang Sheet Metal , , Quality Craftsman , , R C Kimbrel Roofing , , RD Herbert & Sons , , , Sign Spec Inc ,590, ,590, Signad Inc , , Thomco INC , , ,281, ,801, ,005, ,474, TOTALS 75,254, , ,466, ,438, ,349, TOTAL EMPLOYER WITHDRAWAL LIABILITY 75,254,748 Total Principle Amount Received (19,466,099) Total Uncollectible 12/31/10 (24,438,660) Total 12/31/10 31,349,988 Total Employer Withdrawal Liability as of 12/31/09 (52,947,861) Total Employer Withdrawal Liability as of 12/31/10 75,254,748 Newly Assessed as Uncollectible in 2010 (8,299,059) AMG Industries, Inc. (Charles Barber) 1,004 TOTAL WITHDRAWAL LIABILITY INCOME 14,008,832 Page 17

19 SHEET METAL WORKERS NATIONAL PENSION FUND UNCOLLECTIBLE WITHDRAWAL LIABILITY ASSESSMENT 2010 Dec-10 Uncollectible Amt A & H Mechanical - Filed Chapter 7 Bankruptcy. $ 33,368 ABB Paint Settlement agreement. Original assessment $2,096, have received settlement $ 96,749 payments of $1,999, Remainder written off. AD&D Equipment Business ceased operations and no assets to recover. $ 303,306 Brown's Sheet Metal Settlement agreement. Original assessment $1,126, and $338, $ 588,682 written off in Payment of $200,000 received 2010 and balance $588, written off Caudel Business ceased operations and no assets to recover. $ 4,655 Century Engineering - Case was settled for $30,000. Remainder written off. $ 143,383 Empire Sheet Metal Settlement agreement. Original assessment $331, and $206, $ 3,000 written off in Payment of $122,000 received 2010 and balance written off. Gremar Metal Industries Filed Chapter 7 Bankruptcy. $ 618,904 KIKO Heating - Counsel estimates only 10% of the assessment is collectible. Remainder was written offf $ 1,375,690 LVI Corporation Filed Chapter 7 Bankruptcy. $ 364,494 M & M Sheet Metal Fund agreed to a lump sum payment of $ 11, in lieu of $ 2,026 receiving $ 13, over 8 quarterly payments through May Majestic - Counsel estimates case is 75% collectable. Remainder was written off. $ 961,539 MAP Heating Filed Chapter 7 Bankruptcy. $ 343,927 Redbird - Counsel estimates case is 2% collectable. Remainder was written off. $ 748,838 [Withheld] Settlement agreement. Original assessment $3,368,987. Settlement of $2,682,750 agreed to. $ 686,238 Remainder was written off. Standex International Settlement agreement. Original assessment in 2010 $3,416,836.50, $ 666,837 payment of $2,750,000 received 2010 and balance written off. W G Heating - Counsel estimates case is 30% collectable. Remainder was written off. $ 109,979 Warner Fund agreed to a settlement payment of $101, Original assessment $ 375,583 was $478, The liability was reduced based on the sale of all their substantial assets. Wes Co - Counsel estimates case is 20% collectable. Remainder was written off. $ 871,863 Total Uncollectible 2010 $ 8,299,059 Page 18

20 SHEET METAL WORKERS' NATIONAL PENSION FUND DUE TO/FROM OTHER SMW ORGANIZATIONS DECEMBER 2010 Due From/(To) Administrative Services Agreement Stabilization Agreement of the Sheet Metal Industry 78,324 Accidental Death & Dismemberment Plan 2,010 National Supplemental Savings Plan 28,400 International Training Institute 35,400 Headquarters Building 815 National Energy Management Institute Committee 12,800 SMW International Association 0 Scholarship Fund 4,600 Local Unions & Councils US Pension Fund 20,000 Local Unions & Councils Canada Pension Fund 4,550 Occupational Health Institute Trust 11,600 Total Administrative Services Agreement 198,499 Other Due From/(To) Local Unions & Councils Pension Fund (225) National Supplemental Savings Plan TOTAL DUE TO/FROM OTHER SMW ORGANIZATIONS 199,188 Page 19

21 Sheet Metal Workers' National Pension Fund Schedule of Income at 12/31/10 Interest & Dividend Income Realized Gain/(Loss) Unrealized Gain/(Loss) TOTAL per F/S Balance at 11/30/10 - Gain(Loss) 57,799,854 98,556, ,476, ,832,801 BONY CUSTODIAN ACCOUNTS Wells Mid Capital 111, ,579 4,914,582 5,960,440 Cambiar 117, ,760 7,758,471 8,764,498 CRM 192, ,055,655 6,015,444 7,263,875 Vanguard Emerging Markets 601, ,924,531 2,526,415 Clarion REIT 342, ,229 2,223,514 3,159,681 Janus Large Cap 297, ,792 3,487,357 4,653,755 General Account #3 (STIF) 1, (2) 1,811 Philadelphia International (Foreign) 7, (273,162) 10,393,900 10,127,974 Delaware 165, ,016 2,802,433 3,739,068 MET West 119, ,407,261 6,526,962 Seix Investment Advisors 475, , ,015 1,236,109 Wells Large Cap 55, ,612 3,643,821 4,265,265 Westfield Large Cap 129, ,789 6,919,530 7,905,353 PIMCO 530, (466,600) (2,527,139) (2,463,668) Global Currents 49, ,159,120 6,537,740 7,746,361 Thornburg 89, (346,652) 7,821,882 7,564,944 Blackrock 302, (568,757) (753,838) (1,019,939) HGK 148, ,928 5,322,219 5,730,171 Penn Capital 357, ,235 1,006,680 1,409,721 Met West Core Fixed 370, (101,796) (1,212,520) (944,097) NFJ 223, ,378 3,071,748 3,886,078 Wall Street 9, ,723,938 1,269,898 3,003,023 Westfield Capital 80, (170,276) 5,853,652 5,763,690 S&P 500 Index 479, (348,718) 18,230,600 18,361,349 Mid Cap Index 197, ,855,683 5,778,752 7,831,615 Small Cap Index 312, ,921 6,148,244 7,107,258 Other Types of Income * 310,365 5,461 5,029,909 5,345,734 Total Income at 12/31/10 63,878, ,150, ,256, ,286,245 Total Net Appreciation in fair value of investments 341,407,388 * 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 20

22 Sheet Metal Workers' National Pension Fund Schedule of Investment Expenses at 12/31/2010 Balance Expenses 11/30/2010 During 12/31/2010 Investment Manager Expenses * 7,488, ,920 8,194,734 Custodian Expenses * 197,938 15, ,658 Citigroup 1,213, ,719 1,331,502 Independent Fiduciary Services 179,631 58, ,411 Bank of New York Mellon 45,833 4,167 50,000 Kite Realty 250, ,986 Abel/Noser Corp. 5,000 5,000 Commissions and Foreign Expense Fees 197,472 35, ,248 Total Investment Expenses at 12/31/2010 9,579, ,161 10,517,539 * See accompanying Schedule detailing Manager Fees by investment and Custodian Fees Page 21

23 Sheet Metal Workers' National Pension Fund Schedule of Manager and Custodian Fees at 12/31/2010 Manager Fees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Philadelphia 105, ,482 92, , ,764 Blackrock 61,215 63,066 65,530 52, ,102 Brandywine Asset Mgmt/Global Currents 104, ,522 93, , ,888 Cambiar 86,087 90,906 80,645 90, ,267 Clarion REIT 67,725 76,998 74,874 84, ,233 Cramer, Rosenthal, McGlynn 131, , , , ,213 Delaware 60,327 66,740 57,079 64, ,387 HGK 69,414 73,825 65,908 72, ,777 Janus 80,099 84,136 73,536 80, ,394 MET West - Fixed 44,871 46,521 48,897 50, ,778 MET West 86,231 92,424 85,290 94, ,812 NFJ 95, ,331 79,965 87, ,849 Penn Capital 55,719 60,057 60,386 63, ,157 PIMCO 106, , , , ,779 Seix 66,724 66,284 66,948 71, ,195 Thornburg 98, ,990 93, , ,209 Wells Capital Mid Cap 134, , , , ,570 Wells Capital Large Cap 80,472 84,585 74,592 87, ,210 Wall Street 81,670 89,373 75,620 82, ,424 Westfield Small Cap 101, ,457 85,663 97, ,376 Westfield Large Cap Growth 128, , , , ,339 BONY Index Funds S&P 500 Large Cap 29,368 24,000 24,936 24, ,304 BONY Index Funds Mid Cap 10,631 10,500 10,500 10,500 42,131 BONY Index Funds Small Cap 10,268 10,500 10,500 10,500 41,768 Cramer, Rosenthal, McGlynn 27,379 24,000 20,664 22,172 94,215 Invesco Fund of Funds 18,000 18,000 19,745 17,642 73,387 Hancock Separate Account 14 32,171 31,206 30,682 29, ,552 Kite Realty Advisors/Grubb and Ellis Grant Street Corporation 9,029 9,014 9,000 9,000 36,044 HBI 19,474 25,783 25,144 26,505 96,905 Mercy Building 18,412 17,906 18,330 22,058 76,706 Balance as of 12/31/2010 2,020,967 2,123,822 1,922,072 2,127,873 8,194,734 Custodian Fees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Bony - Custodian (Flat Fee) 32,500 32,500 32,500 32, ,000 Bony - Global Custodian 22,513 26,000 12,924 22,220 83,658 Balance as of 12/31/ ,013 58,500 45,424 54, ,658 Page 21a

24 Sheet Metal Workers' National Pension Fund Schedule of Settlement Income at 12/31/2010 Settlement 12/31/2010 ACE Limited 2,974 Sears Roebuck Accep Corporation 41 Advanced Fibre Communications 12 Sirva Inc. 163 American Italian Pasta Company 248 SourceCorp 251 AOL Time Warner Inc. 10,178 Stanley Gaudet 17,958 AON Corp 100 Startek Inc 479 Applied Signal Technology 52 Tenet Healthcare Corporation 4,412 Barrick Gold Corporation 4,580 TNS Inc. 2,937 Beazer Homes USA 8,854 Towe Automotive Inc 51 Bristol-Myers Squibb Co 362 Tyco International LTD 794 Brooks Automation Inc 103 USA Mobility Inc 5,326 Cardinal Health Inc 5,872 Winstar Communications Inc. 9,041 Carrier Access Corp 50 Worldcom Inc. 93,416 Cendant Corporation 2,768 United Rentals Inc. 2,943 Choicepoint Inc 360 USA Mobility Inc. 1,233 Dura Pharmaceutical Inc 22,966 Utstarcom Inc 1,555 El Paso Corp 1,744 Veritas 68 Enron Corporation 2,271 XEROX Corporation 292,636 Footstar Inc 45 Zale Corporation 5,089 Forest Laboratories Inc. 7,056 Freddie Mac 61 General Motors Corp 133 Health Management Systems 230 HealthSouth Corp 50,508 Healthsouth Securities 17,148 International Rectifier Corp 3,871 King Pharmceuticals Inc. 359 KLA Tencor Corporation 374 Lucent Inc. 876 Martek Biosciences Corp 74 Nature's Sunshine Prod Inc 102 NBTY Inc 15 Nortel Networks Corporation 1,662 Openwave Sys Inc 1,084 PSI Distribution 7,889 Qwest Communications International Inc. 2,053 Scottish Re Group Limited 8,091 Total Settlement 12/31/ ,519 Page 22

25 National Pension Fund SCHEDULE OF ADMINISTRATIVE EXPENSES For the Twelve Months Ending December 31, 2010 NPF Budget December December Year to Date Year to Date Year to Date YTD Curr Year Last Year Variance Actuarial 248,500 20,000 20, , ,122 18,302 Admin Services - Hancock/Ullico 147,640 16,362 14, , ,564 4,875 Admin Services - Other 7,459 7,459 29, , ,823 Audit/Accounting Fees 81,250 65,000 72,100 7,100 Bank Charges 98,855 8,493 15,928 82, ,284 30,357 Business/Travel 47,700 1,972 1,885 45,019 49,204 4,186 Computer Processing 856,000 49,692 78, , , ,199 Computer Software/Hardware/Supp ,330 5,725 (16,606) Consultant Fees 349,100 41,232 14, , ,443 (139,386) Dues ,761 14,706 5,946 Employee Benefits 1,889, , ,419 1,841,016 1,675,221 (165,795) Equipment/Equip Maint 57,320 9,424 6,718 50,793 59,425 8,632 Fiduciary Insurance 770,430 49,380 55, , ,353 78,995 Insurance 20,910 3,124 2,341 27,754 23,126 (4,628) Legal - Outside Delinq Counsel 561,830 48,706 47, , ,391 (44,141) Legal Fees 380,400 34,617 65, , , ,471 Legal Fees reimbursed (107,070) (37,872) (5,596) (219,826) (91,017) 128,809 Local Union collection services * 262,900 4,965 17, , ,090 66,294 Miscellaneous 1,807 (11) 14,555 19,245 4,690 Office Supplies 22,604 4,155 2,053 37,123 37, Payroll Audits 680,988 60, , , ,001 90,845 PBGC 1,242, , ,813 1,236,006 1,251,267 15,261 Postage/Delivery/Shipping 436,000 37,548 17, , ,137 (200,863) Printing 193,446 14,202 22, , ,204 (5,705) Records Retention 174, ,085 50,428 76,429 26,001 Seminars/Training 31,000 3,222 2,280 25,731 17,890 (7,842) Soc Sec employment verification 23,380 4,726 (50,391) 7,737 2,336 (5,401) Subscriptions/Publications 16, ,347 14,314 (6,033) Taxes 337,920 26,726 27, , ,593 (26,332) Trustee Expense 61,600 3,471 1,262 81,347 44,799 (36,548) Voice and Data Lines 133,550 4,392 9,103 72, ,826 32,858 Wages 3,855, , ,984 3,700,523 3,890, ,397 Sub - Total 12,874,651 1,148,020 1,263,303 12,615,753 13,094, ,000 Less: Administrative Reimbursement from other SMW Organizations (801,840) (57,608) (14,043) (691,280) (683,842) 7,438 TOTAL 12,072,811 1,090,412 1,249,260 11,924,473 12,410, ,438 Page 23

26 Sheet Metal Workers' National Pension Fund Schedule of Electronic Reporting/Contribution Collection Fees at 12/31/10 Balance Expenses 9/30/2010 During 4th 12/31/2010 Local 10 (St. Paul, Minnesota) 20,541 3,153 23,694 Local 33 (Cleveland, Ohio) 27,498 27,498 Local ,244 16,244 Local 80 11,130 11,130 Local 162 and 104 (Northern California) 46,902 15,328 62,230 Total Collection Fees at 12/31/ ,315 18, ,796 Page 23a

27 SHEET METAL WORKERS' NATIONAL PENSION FUND Administrative Expenses Year-to-Date 2010 versus 2009 Actuarial Fees Adm Servs-Hancock/Ullico Admin Services - Other Audit/Accounting Fees Bank Charges Computer Processing Consultant Fees Employee Benefits Fiduciary Insurance Legal Outside Delinq Legal Fees Local Collection Services Payroll Audits PBGC Postage/Delivery/Shipping Page 15 Printing Records Retention Taxes Trustee Expemse Voice and Data Lines Wages Page 24

28 SHEET METAL WORKERS NATIONAL PENSION FUND ADMINISTRATIVE EXPENSE VARIANCE REPORT December 2010 Admin Services - Other 2009 represents ATPA lump settlement payment represents reimbursement to SASMI. Computer Processing Decrease due to greater amount of system development work performed by Standard Data Corporation in 2009 vs Consultant Fees Increase due to software development and training for OnBase document management system and costs related to set up of Terminal Server network environment. Employee Benefits Increase due to adding disability and life insurance coverage for staff. Insurance Increase due to a premium refund in April 2009, following worker comp premium audit. Legal Fees Decrease due to costs associated with negotiation of CBA covering certain office staff in Payroll Audits Reduction due to increased use of Joint Audit Program where local unions and national funds are sharing the cost of compliance audits. This results in a lower per audit cost. Postage/Delivery/Shipping Increase due to Annual Funding Notice, Notice of Critical Status, Tax Form, Work After Retirement mailings, and Funding Standard Account changes. Records Retention Decrease due to the completion of fiche conversion project in May Seminars/Training Increase due to training on new document imaging system. 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 25