Capitalization range: $113 million to $15 billion
Styles: Core, Quantitative

Inception: July 2005

Product AUM at inception: $86.8 million
Product AUM as of June 30, 2010: $243.5 million
Minimum account size: $5 million

Universe: Russell Midcap^® Index

Restrictions/exclusions: Some portfolios restrict Tobacco stocks and/or REITS (all restrictions are at client's request)
Liquidity Constraints: Liquidity would cause soft close at $2 billion and hard close at $5 billion

Parameters:
Return expectation: 2-3% over the benchmark per annum
Tracking error expected: <4% versus the benchmark
Cash limits <5%, target <1%
Sector limits +/- 2.5% relative to benchmark
Industry limits +/- 2.0% relative to benchmark
Individual security limits overweight +1.25%, underweight -1.50%, relative to benchmark
Typical number of holdings in Portfolio 100-150
Average annual turnover 70-120%

Current Clients:
California Public Employees Retirement System pension plan (CalPERS) $129.5 million
Undisclosed public pension plan through Progress Investments $105 million
Undisclosed public pension plan through Progress Investments $9 million

Fee Schedule:
0.50% first $25 million
0.40% next $25 million
0.30% next $25 million
0.20% next $75 million
0.15% over $150 million

Sources
Russell Midcap^® Index is a registered trademark of the Russell Investment Group
Plan Sponsor Network (PSN) is a product of Informa Investment Solutions
Global Industry Classification Standards (GICS^®) are a registered trademark of Standard & Poor's and MSCI BARRA
Portfolio characteristics compiled from data supplied by The Applied Finance Group, LTD.

Disclosure
Past performance does not guarantee future results. Performance for periods greater than one year is annualized. Gross returns (including realized and unrealized capital gains, reinvestment of dividends and interest) are before fees and administrative expenses. Net returns reflect the return to investors after all fees and expenses.