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					                                                 TIMED ITEM: 1:00 PM

                                    JOINT RETIREMENT BOARDS
                                    MEETING DATE: 2/28/2012




                            There is a difference.




Presentation for:
   y                       y
City of Fresno Retirement Systems
February 28, 2012
Heitman                             Table of Contents
    I.      Heitman Overview…....…...……...…….………………………….…..………..……...…..….....…3

   II.      U.S. Real Estate Securities
            A
            A.       U S REIT Market Review…………………………..…………...……………….…………….4
                     U.S.
            B.       Portfolio Position & Performance…..………….……………...………………..…………...7

   III.     Heitman Real Estate Securities Team………………………………..……………………….….11

   IV.
   IV       Global Real Estate Securities
            A.       Investment Philosophy & Process…………………………...…..………………………...14
            B.       Portfolio Construction…………….…………………………….….………………………...20
            C.       Investment Performance …………….………………………..……….…………………...25

   Appendices
            A.       Portfolio Appraisal & Annual Performance…...….…………………........…………...…..…...……28
            B.       Additional Global Performance Data………………………….....…….……………..…..…...……30
            C.       Biographies……..………………….....……...….………………….....……………...…..…...……35
            D.       Performance Notes………..……..………………………………….…...…………..……………..…41



 Tim Pire, Managing Director                     Mark Abramson, Managing Director                      Christina Polito, Senior Vice President
 Public Real Estate Securities                   Public Real Estate Securities                         Client Service & Marketingg
 +1.312.849.4156                                 +49 0 89 24 218 296 114                               +1.312.425.0352
 timothy.pire@heitman.com                        mark.abramson@heitman.com                             christina.polito@heitman.com

                                                                                                                                        2
The information contained herein is confidential and shall not be copied, reproduced, used or disclosed, in whole or in
part, without the express written consent of Heitman, which may be withheld in Heitman’s sole and absolute discretion.
Heitman
Overview                               Heitman is a Real Estate Specialist
                          Global expertise, focused insight
                                                                                                       45 years investing with
                                                                                                        an exclusive focus on
                                                                                                        real estate

                                      London                                                           Three complementary and
                                g ,
                          Washington, DC
 Los Angeles              Chicago          Luxembourg          Moscow
                                                                                              T k
                                                                                              Tokyo     functionally integrated
                                                         Warsaw
                                                    Munich                          Hong Kong
                                                                                                        business units: private
                                                                                                        equity, public securities
                                                                                                        and debt

                                                                                   Melbourne
                                                                                                       221 professionals serving
                              $25.6 BILLION UNDER MANAGEMENT                                            institutional investors
           North America                          Europe                     Asia-Pacific
                                                                             Asia Pacific               around the world; average
         AUM: $20.6 billion                   AUM: $4.5 billion           AUM: $498 million
                                                                                                        tenure of nine years
        Private Equity                     Private Equity              Private Equity
          - Core                              - Core                       - Value-Add
          - Value-Add                         - Value-Add                Public Securities
        Public Securities                  Public Securities
        Debt



                                                                                                                             3

As of December 31, 2011
U.S. REIT
Market Review                              Performance of Indexes
                                                                            MTD             QTD             YTD           1 Year    3 Year   5 Year   10 Year

    Wilshire U.S. Real Estate Securities 1                                4.71%         15.40%            8.56%          8.56%     21.89%    -2.15%   10.15%

    FTSE NAREIT Equity (U.S.)
                       (U S )                                             4.67%
                                                                          4 67%         15 22%
                                                                                        15.22%            8 29%
                                                                                                          8.29%          8.29%
                                                                                                                         8 29%     21 05%
                                                                                                                                   21.05%     1 42%
                                                                                                                                             -1.42%   10.20%
                                                                                                                                                      10 20%

    FTSE EPRA/NAREIT Developed Global                                     0.94%           7.36%          -5.82%          -5.82%    16.17%    -5.28%    9.59%

    FTSE EPRA/NAREIT Developed Rental Global                              1.62%           8.88%           0.47%          0.47%     18.92%    -4.38%       N/A

    NASDAQ
      S Q                                                                  0   %
                                                                          -0.51%          82 %
                                                                                          8.21%           0 9%
                                                                                                         -0.79%           0 9%
                                                                                                                         -0.79%    19.46%
                                                                                                                                    9 6%     2 0%
                                                                                                                                             2.50%     3.74%
                                                                                                                                                       3   %

    Dow Jones Industrial Average                                          1.58%         12.77%            8.38%          8.38%     14.91%    2.36%     4.56%

    S&P 500                                                               1.02%         11.82%            2.11%          2.11%     14.13%    -0.25%    2.92%

    Russell 2000                                                          0.66%         15.48%           -4.17%          -4.17%    15.65%    0.15%     5.65%

    DJ Utility                                                            3.78%           8.32%         19.69%          19.69%     12.76%    4.43%     8.88%

    MSCI 2                                                                0.62%           7.92%          -4.96%          -4.96%     9.96%    -2.91%    2.24%


All indexes expressed in US dollars unless noted.
1
    Returns are float-adjusted from January 1, 2005 onwards.
2
    The World Index of Developed Markets, expressed in local currency.




                                                                                                                                                      4
                                                               Please read Diversified Strategy Wilshire U.S. RESI & FTSE NAREIT
Periods Ending 12/31/11                                         Performance Notes pages for important disclosure information.
U.S. REIT
Market Review     2011 U.S. REIT Market Review

             Market themes driving U.S. real estate securities

    Large cap stocks outperformed
     because of their stronger balance
     sheets, better assets and higher
     quality management teams

    Gateway markets and identifiable
     growth stories outperformed

    Companies working through legacy issues or slower recovering
     real estate markets underperformed

    Risk-On/Risk-Off trade required flexibility and active management




                                                                         5
U.S. REIT
Market Review        2011 U.S. REIT Market Review
            The Best of 2011
                                              FTSE EPRA/NAREIT Developed North America Index
  Self-Storage outperformed as a result      Property Type Returns
   of strong underlying fundamentals                                               Average
   (E t Space)
   (Extra S     )                                                      2011      Benchmark
                                              Property Type 1          Return        Weight
  Residential outperformed as renter
                                              Self-Storage                             35.21%                4.87%
   demand increased as a result of
   healthy economy and continued              Specialty                                17.87%                2.47%
   weakness in housing market (Essex)         Residential                              15.89%               17.58%
                                              Healthcare                               14.01%               12.55%
  Healthcare outperformed as companies
                                              Retail                                   12.95%               26.48%
   used attractively priced capital to make
                                              Industrial/Office Mixed                    4.43%               2.43%
   accretive acquisitions (HCN)
                                              Office                                    -0.50%              13.89%
                                              Diversified                                1 60%
                                                                                        -1.60%               9.09%
                                                                                                             9 09%
            The Worst of 2011                 Industrial                                -5.49%               4.54%
                                              Lodging/Resorts                         -16.03%                6.10%
  Lodging/Resorts underperformed as
   fears of double dip increased midyear      FTSE EPRA/NAREIT Developed
   (FelCor)                                   North America Index     8.19%                                   100%
  Industrial weak as fears over global       1    Property type as classified by Heitman, which may vary from benchmark
   economic slowdown hurt large cap                classifications.

   (ProLogis)                                 Returns represented in U.S. Dollars.

  Weak diversified sector due to company
          di ersified       d e compan
   specific circumstances (Corporate
   Office Property)
                                                                                                                  6
Portfolio
Position &
Performance                           U. S. Portfolio Positioning
    Economies generating positive growth though inconsistent; corporate profits, consumer
    confidence, manufacturing output and availability of debt capital have all improved
             – 2011 saw continued improvement in all property sectors
             – After the severe cuts during the GFC, expect higher dividends and healthier balance sheets
             – Returns likely in-line with historic averages; not as strong as 2009/2010

                                                                                        LARGEST OVERWEIGHTS/UNDERWEIGHTS
    Overweight companies with identifiable growth                                                         Portfolio    Index       Relative
     strategies and strong management teams that                                                          Weighting    Weighting   Weighting
                       markets,
     operate in strong markets own strong assets and                         Top 3
     operate with lower leverage                                              Alexandria Real Estate       3.61%        1.14%       2.47%
                                                                                (Office)
                                                                              Prologis Inc.                5.82%        3.70%       2.12%
    Underweight companies with excessively high                                (Industrial)
     valuations that would require a fundamental                              Simon Property Group         12.50%      10.69%       1.81%
     change in the company’s prospects to justify                               (Regional Retail)
                                                                             Bottom 3
    Balance exposure in sectors; look for buying                             Digital Realty Trust         0.00%        1.97%       -1.97%
                                                                                (Office)
     opportunities in oversold names                                          Macerich Co.                 0.00%        1.88%       -1.88%
                                                                                (Regional Retail)
                  POSITIONING RELATIVE TO BENCHMARK                           General Growth Properties    0.00%        1.74%       -1.74%
                                                                                (Regional Retail)
Overweig ht Property       Relative     Underweig ht Property    Relative
      Types               Weighting           Types             Weig hting
Office                      +1.8%     Local Retail                0.0%
Industrial                  +1.7%     Manufactured Housing        -0.2%
Regional Retail             +0.4%     Hotel                       -0.3%
Storage
S                            0 2%
                            +0.2%     Diversified
                                      Di    ifi d                  1 4%
                                                                  -1.4%
Health Care                 +0.2%     Mixed                       -2.6%
Apartments                  +0.1%
                                                                                                                                   7
As of 12/31/11
U.S. Diversified Wilshire Strategy
Portfolio
Position &
Performance                         City of Fresno Portfolio Performance



                                                    City of Fresno                Benchmark
                                                    (Gross of Fee)           (Wilshire U.S. RESI)1   Spread


       QTD                                               16.84%                       15.40%         +1.44%
       Fiscal YTD (from 6/30/11)                          -0.67%                      -1.99%         +1.32%
       1 Year                                            12.02%                        8.56%         +3.46%
       3 Years                                           21.74%                       21.89%          -0.15%
       5 Years                                             1 77%
                                                          -1.77%                       2 15%
                                                                                      -2.15%         +0.38%
                                                                                                     +0 38%
       Since Inception2 (07/31/05)                         3.25%                       2.99%         +0.26%


             1   Wilshire U.S. Real Estate Securities Index
             2                                 Period                   07/05/2005.
                 Since Inception of Benchmark Period. Account Inception 07/05/2005




                                                                                                               8
Periods Ending 12/31/11
Portfolio
Position &                            Heitman U.S. Diversified Strategy
Performance                           Performance Attribution 1-Year
 + U.S. Diversified Wilshire Strategy out-performed the benchmark (Wilshire U.S. RESI) by
   352 bps (12.08% preliminary vs. 8.56%).

 +S    it    l ti     dd d     bps to l ti     f
  Security selection added 298 b t relative performance.
       + Strong selection in the regional retail sector added 114 bps to relative performance, driven by underweighting
         General Growth Properties and overweighting Simon Property Group.
       + Strong selection in the office sector added 98 bps to relative performance, driven by overweighting Boston
                                                                     Trust
         Properties and underweighting Corporate Office Properties Trust.
       + Strong selection in the apartment sector added 44 bps to relative performance, driven by overweighting Essex
         Property Trust and underweighting Apartment Investment & Management.
       − Strong selection in the healthcare sector added 44 bps to relative performance, driven by overweighting
         Nationwide Health Properties and underweighting Healthcare Realty Trust.


 + Sector allocation (excluding cash) added 52 bps to relative performance.
       + Underweighting the diversified sector added 26 bps to relative performance. The diversified sector was the
         worst performing sector in the benchmark.
       + Underweighting the local retail sector added 14 bps to relative performance.
       − Overweighting the industrial sector during times of underperformance detracted 26 bps from relative
         performance.


 − Cash position of 1.17% detracted 32 bps from relative performance.
                    1 17%                                performance


                                                                                                                                        9
                          Please read U.S. Diversified Wilshire Strategy Performance Notes page for important disclosure information.
12 Months Ending 12/31/11       Please read Attribution Analysis Performance Notes page for important disclosure information.
Portfolio
Position &                                 Heitman U.S. Diversified Strategy
Performance                                Performance Attribution 1-Year

                            Representative Separate Account               Wilshire U.S. Real Estate                                      Attribution Analysis
                                 U.S. Diversified Strategy                     Securities Index                Variation        Sector    Security
                             Average     Total     Contribution         Average Total Contribution Average Total Contribution Allocation Selection Interaction Total
Property Type                 Weight     Return     To Return           Weight Return To Return        Weight Return To Return  Effect     Effect     Effect   Effect
REGIONAL RETAIL               17.20        31.38          5.01           16.26      22.56        3.51   0.94     8.82     1.50    0.11       1.14       0.12    1.37
OFFICE                        14.00          5.55         0.59           15.18       -0.78      -0.31  -1.18     6.34     0.90    0.12       0.98      -0.11    0.99
MIXED                          5.90        22.51          1.32            4.68      13.37        0.63   1.23     9.14     0.69    0.05       0.42       0.18    0.65
APARTMENTS                    18.01        17.83          2.96           17.67      15.14        2.51   0.34     2.70     0.46    0.09       0.44       0.01    0.54
HEALTH CARE                   12.65        19.64          2.60           12.96      15.86        2.20  -0.31     3.78     0.40   -0.05       0.44       0.01    0.40
HOTEL                          7.09
                               7 09        10 59
                                          -10.59         -0.67
                                                          0 67            7 17
                                                                          7.17      13 67
                                                                                   -13.67        1 01
                                                                                                -1.01  -0.09
                                                                                                        0 09     3.07
                                                                                                                 3 07     0 34
                                                                                                                          0.34    0 08
                                                                                                                                  0.08       0.26
                                                                                                                                             0 26       0 02
                                                                                                                                                       -0.02    0.32
                                                                                                                                                                0 32
DIVERSIFIED                    6.32         -9.69        -0.39            6.67       -8.55      -0.65  -0.35    -1.14     0.25    0.26      -0.10       0.02    0.18
STORAGE                        6.06        34.99          1.93            6.08      35.36        2.01  -0.02    -0.37    -0.08    0.03      -0.02      -0.00    0.01
MANUFACTURED HOUSING           0.09          6.17         0.06            0.84      21.56        0.14  -0.76  -15.39     -0.08   -0.06       0.03      -0.01   -0.03
LOCAL RETAIL                   6.31         -6.84        -0.28            7.43       -2.40      -0.16  -1.12    -4.44    -0.11    0.14      -0.32       0.08   -0.10
INDUSTRIAL                     5.19         -9.85        -1.02            5.05       -4.68      -0.29   0.14    -5.17    -0.72   -0.26      -0.28       0.07   -0.47
Relative Performance Excluding Cash                                                                                               0.52       2.98       0.36    3.86
C h
Cash                           1 17
                               1.17          0.02
                                             0 02         0 00
                                                          0.00                --         --         --  1 17
                                                                                                        1.17     0 02
                                                                                                                 0.02     0.00
                                                                                                                          0 00   -0.32
                                                                                                                                  0 32          --         --   0 32
                                                                                                                                                               -0.32
Total                        100.00        12.10        12.10           100.00        8.55       8.55      --    3.54     3.54    0.21       2.98       0.36    3.54
Calculation Variance                        -0.02                                     0.01                                                                     -0.02
Actual Return                              12.08                                      8.56                                                                      3.52
Holdings Data As Of
  Diversified Wilshire Representative Separate Account - Transactions 12/31/2010 through 12/31/2011
 Wilshire US Real Estate Securities Index 12/31/2010 through 12/30/2011
                                  Heitman.                                                classifications.
Property type is as classified by Heitman Heitman classifications may vary from benchmark classifications
Returns are presented in US Dollars.




                                                                                                                                                        10
                          Please read U.S. Diversified Wilshire Strategy Performance Notes page for important disclosure information.
12 Months Ending 12/31/11       Please read Attribution Analysis Performance Notes page for important disclosure information.
Real Estate Securities Team



                              11
Team
Overview                            Global Portfolio Management Team

                    NORTH AMERICA                                           EUROPE                                         ASIA-PACIFIC
              Assistant Portfolio Managers                         Assistant Portfolio Manager                       Assistant Portfolio Manager
                    Mike Moran, CFA                                   Michael Shoemacher                                  Catriona Forrester
                     J ff Yurk, CFA
                     Jeff Y k                                           Company Analyst                                  Company Analysts
                    Company Analysts                                     Andreas Welter                                     Rachel Lau
                      Adam Cristelli                                                                                       Jeff Mak, CFA
                     Charles Harbin




          OPERATIONS
     Chief Operating Officer                                                                                                         COMPLIANCE
        Richard Kateley                                                                          JOHN WHITE
                                                                                                 Managing Director                    Randy Ramey
            Larry Laurin                                                                         Portfolio Manager                    Katie Boysen
       Bill Pogorelec CPA
            Pogorelec,                                                MARK ABRAMSON
                                                                         Managing Director
          Becki Shaffer                        TIM PIRE, CFA             Portfolio Manager
                                               Managing Director
                                               Portfolio Manager


       PORTFOLIO ANALYSTS                                                                                                            TRADERS
            Nikki Bair, CFA
                  Bair                                                                                                             Eric Cadogan
            Shruti Waghray                                                                                                         Mark Zahara




                                                                    HEITMAN PLATFORM
                  Private Real Estate Equity            Private Real Estate Debt             Property Research                Client Service



                                                                                                                                                   12
 Heitman Securities’ Offices
Team
Overview          Local and Experienced Portfolio Managers
                Tim Pire, CFA, North American Portfolio Manager
                – 24 years experience including real estate securities portfolio management and
                  p p y pp
                  property appraisal
                – Equity owner of the firm, leading Heitman’s real estate securities group since 1992
                – MS in Real Estate from the University of Wisconsin
     CHICAGO


                Mark Abramson, European Portfolio Manager
                – 17 years experience including real estate securities portfolio management and
                  investment banking securities analysis with a focus on hospitality and
                                                  p
                  leisure-oriented real estate companies
                – MA from American University in Economics and graduate work at the University
                  of Maryland in international public policy
      MUNICH


                John Whit Asia-Pacific Portfolio Manager
                J h White, A i P ifi P tf li M       g
                – 20 years experience including real estate securities portfolio management, real
                  estate investment banking and property appraisal
                – B.Bus in Land Economy from UWS and Graduate Diploma in Applied Finance and
                  Investment from the Securities Institute of Australia
    MELBOURNE
                                                                                            13
Investment
Philosophy &
Process                Why Global Real Estate Securities
 The case for global real estate securities is based on:
    Attractive characteristics of the underlying asset markets outside the USA
      – Expanded opportunity set – $750 billion global real estate securities universe (versus
        $350 billion U.S.)
      – Opportunities to gain exposure to underlying real estate assets in higher growth markets

                               U.S./global
     Specific attributes of the U S /global listed securities universe
      – Exposure to higher-quality real estate in international markets is through the listed
        market
      – Rapidly developing asset class outside the USA
      – Higher tendency for non-U.S. real estate securities to be mispriced relative to their
        underlying real estate value

    Portfolio benefits from investment in global real estate securities
      – The efficient frontier is moved upward through the inclusion of an allocation to REITs
      – International real estate companies have more dynamic business models than their peers
        in the U.S. (i.e. development) however exhibit lower volatility
      – Enhanced yield – FTSE EPRA/NAREIT Developed Benchmark currently yielding 4.8%
        versus Wilshire U.S. Real Estate Securities Index yield of 3.6%

                                                                                                14
Investment
Philosophy &
Process               Investment Philosophy & Strategy
  Heitman’s investment philosophy is based on these key principles
      – Value is created when return on invested capital exceeds the cost of capital

      – Over the long term REITs’ returns reflect the performance of underlying property however

      – In the short term, REITs are influenced by capital market and non-fundamental factors
        and can trade away from intrinsic value


  Our investment strategy is to identify and invest in companies with sustainable
   long-term growth prospects and attractive valuations
      – Generate 70–80% alpha through stock selection

      – Construct a portfolio of core long-term shareholdings in companies which generate
        superior long-term value creation

      – Regularly rebalance the portfolio and take opportunistic trading positions based on top-
        down market analysis and/or near-term stock-specific catalysts




                                                                                            15
Investment
Philosophy &
Process                                Global Allocation Process
  Collaborative Approach to Investment Decisions
        − Global Coordination and Discussion
                   •    Bi-annual global strategic meetings – cyclical thematics secular and structural outlooks
                        Bi annual                                      thematics,
                   •    Monthly global team-wide conference calls – cyclical update on macro and property markets,
                        performance attribution and valuation analysis
                   •    Weekly global Portfolio Manager calls – events and estimate changes
                   •    Daily global “hot-potato” – daily email chain of capital market news and trading outlook in
                        each region
                   •    Real-time Bloomberg chat room
                   •    Ad-hoc conference calls / emails as conditions require

       − Determine regional weightings based on the team’s view of global and regional out look
         for the macro economy, property markets, capital markets and review of standardized
         valuation metrics
                                                       Australia/          Asia
                                                                                            Japan              US             Canada   Europe    UK
                                                         N.Z.            Ex-Japan
    EBITDA Yield Spread to Real Bond                      6.64
                                                          6 64             10.28
                                                                           10 28             7 27
                                                                                             7.27             6 36
                                                                                                              6.36             5.23
                                                                                                                               5 23    5 84
                                                                                                                                       5.84     5.87
                                                                                                                                                5 87

    Premium/Discount to NAV                              -17.99           -22.71           -24.68             5.00            19.01    -19.24   -12.37

    Dividend Yield Spread to Real Bond                    5.36             4.75              3.57             3.61             4.73    5.94     5.14

    1 year Dividend Growth                                3.10             0.00              0.00             9.60             5.00    5.16     7.57
                                                         Market            Over            Under             Market           Under     Over    Market
              Quantitative Valuation
                                                         Weight           Weight           Weight            Weight           Weight   Weight   Weight
   Note: Each factor is equally weighted in market order to arrive at the quantitative evaluation. Sample as of December 31, 2011.
                                                                                                                                                       16
Investment
Philosophy &
Process                        Regional Investment Process


                 Top Down                                            Bottom Up                              Portfolio Construction


            Macro                Property              Asset               Corporate             Security            Portfolio
                                 Markets               Research            Research              Analysis &          Construction
            Research
            & Analysis           Analysis              & Analysis          & Analysis            Valuation           & Risk
                                                                                                                     Management

     Macro policy        Real estate          Property            Balance sheet       Financial           Regional
      – Cyclical           markets               portfolio            structure            analysis             allocation
                           research             Development         Analysis of         Security            Security selection
      – Secular
                          Transactional         and funds            internal and         modeling            Trading analysis
      – Structural
                           and market-           management           external growth     Economic and
     Capital markets      wide data             businesses                                                    Liquidity
                                                                    A       t
                                                                     Access to                t l i ht
                                                                                           control rights
     Research            Internal property    Private market      capital and deal-                         Volatility
                                                                                          Ownership
      universe defined     and research          value               flow                  concentration       Attribution
                           teams                                     Management                               Stop-losses
                                                                                          Risk Analysis
                                                                      discipline
                                                                                          Valuation
                                                                     Corporate
                                                                      governance          ROCE/WACC




                                                                                                                                     17
Investment
Philosophy &
Process                   Security Valuation Process

                           Private Valuation Models                                    Public Valuation Models


         Real Estate Value                      Company Value                                   Security Value

      Private market approach             Assessment of the                          Public market approach
      Assessment of markets                value-add potential                        Allowance for
       and lease structures                  Present value of
                                            –P         l    f
                                                                                          – Leverage/balance sheet
                                             development pipeline
      – Forecast real estate                                                                structure
        income                              – Value of funds businesses
                                                                                          – Dividend payout policy
                                            – Corporate costs
      – Capitalize Net Operating                                                          – Corporate governance
        Income                              – Return on Capital
                                                                                          – Capital markets pricing
                                              Employed/Weighted Avg
      Intrinsic value of                     Cost of Capital                             – Liquidity and volatility
       underlying assets (NAV or                                                       DCF and/or Multiple Based
       DCF approach / Implied              EV/EBITDA or DCF
                                            Approach                                    Approach
       cap rate or EBITDA yield)


                               Avoid “one size fits all” perspective in favor of a
                               customised investment approach by geography

                                                                          Top Down                           Bottom Up                     Portfolio Construction

                                                                                     Property   Asset            Corporate    Security           Portfolio
                                                                      Macro
                                                                                     Markets    Research         Research     Analysis &         Construction
                                                                      Research
                                                                                     Analysis   & Analysis       & Analysis   Valuation          & Risk
                                                                      & Analysis
                                                                                                                                                 Management


                                                                                                                                               18
Investment
Philosophy &
Process                      Portfolio Construction and Risk Controls
  Portfolio construction guidelines and risk controls:
    Guidelines Relative to
    Global Benchmark                Global Diversified Strategy                       Global Focused Strategy
    Security Weighting              + / - 500 bps                                     + / - 750 bps

    Regional Weighting              +/- 1000 bps per region                           +/- 1500 bps per region

    Country Weighting               If country size is over 5% of benchmark,          If country size is over 5% of benchmark,
                                    cannot underweight by more than 50%               cannot underweight by more than 50%

    Maximum number of Holdings      35% of benchmark                                  25% of benchmark

    Holdings outside of benchmark   No more than 10%                                  No more than 10%

    Cash Management                 Less than 5%                                      Less than 5%



   Active approach to risk management:
       – Live monitoring through Moxy
       – Limits on individual risk positions (marginal contribution to tracking error, days to
         cover, correlation & beta)
       – Risk management team monitors and seeks to continuously improve processes
                                                                             Top Down                           Bottom Up                     Portfolio Construction

                                                                                        Property   Asset            Corporate    Security           Portfolio
                                                                         Macro
                                                                                        Markets    Research         Research     Analysis &         Construction
                                                                         Research
                                                                                        Analysis   & Analysis       & Analysis   Valuation          & Risk
                                                                         & Analysis
                                                                                                                                                    Management


                                                                                                                                                  19
Portfolio
Construction                      Global Portfolio Position

  Our portfolio balances risk exposure to companies, sectors and markets
         − Balance regional over/under weights during a time of unclear differentiation
           in        i   tl k f             ti
           i economic outlook for many countries
         − Balance growth and value in many regions; “risk-on” and “risk-off” trade still
           occurring


                                    Heitman
                                     Global                     Relative    Japan: Mixed data releases throughout 4Q2011
                                   Strategy(1)     Index(2)    Weighting
                                                                             point to a delayed recovery in Japan. However,
                                                                             the real estate sector remains well supported
    Japan                             9.3%          8.6%        +0.7%
                                                                             with accommodative monetary policy and Bank
    United Kingdom                     5.4%         5.1%         +0.3%       of Japan’s asset purchase plan for JREITs.
    Australia / New                    8.7%         8.4%         +0.3%
    United States                    48.5%        48.4%           0.1%      Asia Ex-Japan: Inflation is slowing as growth is
                                                                             showing signs of deteriorating, in line with policy
    Middle East                        0.0%
                                       0 0%         0.1%
                                                    0 1%           0 1%
                                                                  -0.1%
                                                                             objectives throughout 2011. The outlook for
    Europe                             8.9%         9.1%          -0.2%      growth in the region over the next 12 months
    Canada                             4.5%         4.7%          -0.2%      has been revised down, reflecting the slowdown
    Asia Ex-Japan                    14.7%        15.6%           -0.9%      in the wider global economy.



 (1) Heitman Global Diversified Developed Strategy Portfolio weighting
 (2) FTSE EPRA/NAREIT Developed Index weighting
                                                                                                                            20
As of 12/31/11
Portfolio
                                    Europe:
Construction                        Portfolio Positioning
   Europe story remains driven by macro trends; sovereign debt crisis weighing heavily on
   equity markets-especially the EU banking sector
          – Fundamentals improved across the region, strongest in the London, Stockholm and Oslo office markets
          – Transaction volumes across EU at comparable levels from a year ago, however, yield compression, has slowed
               ti   bl institutional d
            noticeably; i tit ti   l demand remains robust f prime assets i th best markets
                                           d      i     b t for i         t in the b t    k t
          – Listed real estate has consistently outperformed broader equities

                                                                                                 LARGEST OVERWEIGHTS/UNDERWEIGHTS
   Euro sovereign concerns persist and lead to high
                                                                                                                   Portfolio    Index        Relative
    levels of macro influence on regional equity markets                                                          Weighting    Weighting    Weighting
                                                                                    Top 3
   Portfolio slightly geared towards cyclical exposure in                            Hufvudstaden                 0.56%        0.20%           0.35%
    anticipation of more coordinated action to address                                  (Diversified)
    Eurozone problems                                                                 Unibail-Rodamco              2.42%        2.14%           0.28%
                                                                                        (Diversified)
   Overweight quality – both in terms of prime assets                                Eurocommercial               0.45%        0.17%           0.28%
                                                                                        (Diversified)
    and strength of management                                                      Bottom 3
   Overweight London office on relative growth;                                      Swiss Prime Site             0.00%        0.40%        -0.40%
                                                                                        (Office)
    overweight Germany and Nordic countries on                                        Cofinimmo                    0.00%        0.21%        -0.21%
    relative economic strength                                                          (Office)
                                                                                      Capital Shopping Centres     0.23%        0.41%        -0.17%
                                                                                        (Retail)
                                      PORTFOLIO STATISTICS
                                                       Continental
                                    Continental          Europe                          UK
                                  Europe Portfolio        Index      UK Portfolio      Index
  Implied Cap/EBITDA Yield             6.0%               6.0%          5.2%           5.2%
  Premium/Discount NAV                 17 9%
                                      -17.9%               -19.2%
                                                            19 2%       21 9%
                                                                       -21.9%          12 4%
                                                                                      -12.4%
  Dividend Yield                       5.7%                6.1%         4.2%           4.5%
  1 Year Dividend Growth               5.1%                5.2%         7.7%           7.6%
                                                                                                                                           21
As of 12/31/11
See Page for Global Diversified Developed Footnotes – EU
Portfolio
                                    Asia-Pacific:
Construction                        Portfolio Positioning
   Still searching for balance between continued high but slowing economic growth, capital
   flows, currency appreciation and inflation
          – Low supply in the non-residential markets, however signs point to peaking in tenant demand
          – Cautious stance on residential markets in most countries as government policy measures take hold, however,
              l         i in China d Australian d
            value emerging i Chi and A                   l
                                                  li developers
          – Japan appears to be recovering quicker than expected
          – Selective participation in equity offerings

                                                                                                      LARGEST OVERWEIGHTS/UNDERWEIGHTS
   Non residential property sectors remain defensive as                                                               Portfolio    Index       Relative
    policy continues to target housing                                                                                Weig hting   Weighting   Weighting
                                                                                         Top 3
   Underweight pro-cyclical sectors such as office and                                    Goodman Group               1.73%        0.56%       1.17%
    hotels given risk to global growth                                                       (Diversified)
                                                                                           Japan Real Estate           1.56%        0.50%       1.07%
   Underweight markets/ sectors where there are property                                    (Office)
    and banking liquidity tightening risks                                                 China Overseas Land         1 49%
                                                                                                                       1.49%        0.89%
                                                                                                                                    0 89%       0.60%
                                                                                                                                                0 60%
                                                                                             (Diversified)
   We remain underweight Chinese developers as the risk                                 Bottom 3
    to earnings is on the downside given the impact of                                     Henderson Land              0.00%        0.76%       -0.76%
                                                                                             (Diversified)
    earlier policy initiatives                                                             Hang Lung Properties        0.12%        0.83%       -0.71%
   Prefer investors over developers                                                         (Diversified)
                                                                                           Nippon Building Fund        0 00%
                                                                                                                       0.00%        0 61%
                                                                                                                                    0.61%        0 61%
                                                                                                                                                -0.61%
                                                                                             (Office)
                                            PORTFOLIO STATISTICS
                             Australia/NZ   Australia/NZ   Asia Ex-Japan Asia Ex-Japan     Japan        Japan
                               Portfolio       Index         Portfolio       Index        Portfolio     Index
  Implied Cap/EBITDA Yield       7.9%          7.9%           9.2%           9.1%          5.8%         7.9%
  Premium/Discount NAV          -18.2%        -18.0%         -16.6%         -22.7%        -22.2%       -24.7%
  Dividend Yield                 6.8%          6.6%           3.3%           3.6%          3.4%         4.2%
  1 Year Dividend Growth         3.6%          3.1%           7.2%           0.0%          0.7%         0.0%
                                                                                                                                               22
As of 12/31/11
See Page for Global Diversified Developed Footnotes – AP
Portfolio
                                    North America:
Construction                        Portfolio Positioning
   Economies generating positive growth though inconsistent; corporate profits, consumer
   confidence, manufacturing output and availability of debt capital have all improved
          – 2011 saw continued improvement in all property sectors
          – After the severe cuts during the GFC, expect higher dividends and healthier balance sheets
          – Returns likely in-line with historic averages; not as strong as 2009/2010

                                                                                          LARGEST OVERWEIGHTS/UNDERWEIGHTS
    Overweight companies with identifiable growth                                                           Portfolio    Index        Relative
     strategies and strong management teams that                                                            Weig hting   Weig hting   Weig hting
                       markets,
     operate in strong markets own strong assets and                           Top 3
                                                                                Prologis Inc.                2.98%        1.71%        1.28%
     operate with lower leverage                                                  (Industrial)
                                                                                Alexandria Real Estate       1.77%        0.55%        1.22%
    Underweight companies with excessively high                                  (Office)
     valuations that would require a fundamental                                Health Care REIT             2.48%        1.36%        1.12%
                                                                                  (Health Care)
     change in the company’s prospects to justify.
                                                                               Bottom 3
                                                                                General Growth Properties    0.00%        0.79%        -0.79%
    Balance exposure in sectors; look for buying                                 (Retail)
     opportunities in oversold names                                            Digital Realty Trust         0.00%        0.91%        -0.91%
                                                                                  (Office)
                                                                                Macerich Co.                 0.00%        0.87%        -0.87%
                                                                                  (Retail)
                                   PORTFOLIO STATISTICS
                                         US                  US    Canada      Canada
                                       Portfolio           Index   Portfolio    Index
   Implied Cap/EBITDA Yield              6.1%              6.3%     5.9%        5.7%
   Premium/Discount NAV                  4.9%              5.0%    14.9%        19.0%
   Dividend Yield                        3.2%              3.5%     5.1%        5.2%
   1 Year Dividend Growth               10.6%              9.6%     5.5%        5.0%

                                                                                                                                      23
As of 12/31/11
See Page for Global Diversified Developed Footnotes – NA
Portfolio
Construction            Global Portfolio Metrics
  Heitman’s Diversified strategy is designed to provide investors a portfolio of global
   real estate securities diversified by number of holdings, regions and sectors -
   average number of holdings 80 to 90 names


                                                      Global      FTSE/EPRA NAREIT
                                                    Diversified       Developed
                                                    Developed        Benchmark

               Implied Cap/EBITDA Yield               6.57%            6.87%

               EBITDA Yield Spread to Real Bond       6.49%            6.79%

               Premium/Discount to NAV               -10.99%          -10.43%

               Dividend Yield                         4.53%            4.81%

               Dividend Yield Spread to Real Bond     4.45%            4.73%

               1 Year Dividend Growth                 5.77%            4.35%

               # of Names                              112              284

               Cash Position                           1 5%
                                                       1.5%             NA

               As of 12/31/11.




                                                                                     24
Investment
Performance                        Heitman’s Global Performance
                                                                                  PERFORMANCE                              QUARTILE RANKING

                                                            Heitman             FTSE EPRA/NAREIT
                                                         (Gross of Fee)          Developed Index              Spread             PSN
    Global Diversified Developed Strategy
    QTD                                                         8.43%                   7.36%                     +1.07%         1st
    Since Inception (12/31/10)                                  -2.65%                  -5.82%                    +3.17%


                                                           Heitman      FTSE EPRA/ NAREIT
                                                                      1
                                                        (Gross of Fee) Developed Rental Index                 Spread

    Global Diversified Rental Strategy
    QTD                                                         9.98%                   8.88%                     +1.10%         1st
    1 Year                                                      2 53%
                                                                2.53%                   0.47%
                                                                                        0 47%                     +2.06%         1st
    3 Years                                                   19.32%                   18.92%                     +0.40%         1st
    Since Inception (7/31/07)                                   -1.35%                  -2.73%                    +1.38%

    Global Focused Rental Strategy
    QTD
    Q                                                           8.82%                   8.88%                     -0.06%         1st
    1 Year                                                      2.41%                   0.47%                     +1.94%         1st
    3 Years                                                   19.77%                   18.92%                     +0.85%         1st
    Since Inception (3/31/07)                                   -3.94%                  -5.49%                    +1.55%




    Returns are calculated and presented in USD.

                                                                                                                                       25
Periods Ending 12/31/11               Please read Performance Notes pages for important disclosure information.
Investment                      Global Diversified Developed Strategy:
Performance                     Attribution Analysis
 + Global Diversified Developed Strategy out-performed the benchmark (FTSE EPRA/NAREIT
   Developed Index) by 317 bps (-2.65% preliminary vs. -5.82%).

 + Security selection added 271 bps to relative performance.
                                                performance
      + Strong selection in the United States added 216 bps to relative performance, driven by overweighting Simon
        Property Group and Digital Realty Trust.
      + Strong selection in Asia Ex-Japan added 92 bps to relative performance, driven by holding Evergrande Real
        Estate Group outside of the benchmark, and by underweighting New World Development and Hang Lung
        Properties.
      − Weak selection in Australia/New Zealand detracted 21 bps from relative performance, driven by overweighting
        Stockland Australia during periods of underperformance, and by underweighting Commonwealth Property Office
        Fund.


 + Sector allocation (excluding cash) added 46 bps to relative performance
      + Underweight of Asia Ex-Japan added 46 bps to relative performance. Asia Ex-Japan was the worst performing
        region of the benchmark.
      − Underweight of Australia/New Zealand detracted 10 bps from relative performance. Australia/New Zealand was
        the best performing region of the benchmark.


 + Cash position of 1.39% added 33 bps from relative performance.
      − Total currency effect detracted 5 bps from relative performance.




                        Please read Global Diversified Developed Strategy Performance Notes page for important disclosure information.   26
                                 Please read Attribution Analysis Performance Notes page for important disclosure information.
12 Months Ending 12/31/11
Investment                                     Global Diversified Developed Strategy:
Performance                                    Attribution Analysis


                                                                                                                                                Attribution Analysis
                               Representative Separate Account         FTSE EPRA/NAREIT                                                Local Currency
                                  Global Developed Strategy              Developed Index                Variation           Regional Security                        Total     Total
                                Average     Total Contribution     Average   Total Contribution Average Total Contribution Allocation Selection Interaction Total Currency    Effect
Region/Country                   Weight    Return To Return        Weight Return To Return      Weight Return To Return      Effect    Effect      Effect     Effect Effect U.S. Dollar
UNITED STATES                 43.49           13.23       5.91      44.01        7.51       3.83      -0.52     5.71    2.08   -0.06      2.16      -0.02     2.08    0.03       2.11
ASIA EX-JAPAN                 17.51          -22.32      -4.03      18.01     -25.86       -5.63      -0.51     3.54    1.60    0.46      0.92       0.02     1.39   -0.12       1.27
JAPAN                           9.50         -22.54      -2.75       9.46     -22.09       -2.48       0.04    -0.45   -0.27    0.09     -0.05       0.02     0.06   -0.02       0.04
CANADA                          3.92          18.77       0.63       4.04      17.15        0.59      -0.12     1.62    0.04   -0.02      0.05      -0.00     0.02    0.01       0.03
EUROPE                          9.85          15.26
                                             -15.26      -1.22
                                                          1.22      10.04      14.28
                                                                              -14.28        1.35
                                                                                           -1.35      -0.19
                                                                                                       0.19     0.98
                                                                                                               -0.98    0.13    0.07      0.09
                                                                                                                                         -0.09      -0.02
                                                                                                                                                     0.02     0.04
                                                                                                                                                             -0.04    0.06       0.02
MIDDLE EAST                        --              --        --      0.11     -15.01       -0.02      -0.11   15.01     0.02    0.00         --         --    0.00    0.01       0.01
UNITED KINGDOM                  5.79         -10.24      -0.63       5.70       -8.58      -0.54       0.09    -1.66   -0.09    0.01     -0.06      -0.01    -0.06   -0.04      -0.10
AUSTRALIA / NEW ZEALAND         8.56           -4.32     -0.49       8.63       -1.86      -0.17      -0.07    -2.45   -0.32   -0.10     -0.21      -0.03    -0.34    0.03      -0.31
Relative Performance Excluding Cash                                                                                             0.46      2.71      -0.05     3.12   -0.05       3.06
CASH                            1.39         12.94        0.20          --         --          --     1.39    12.94    0.20     0.18         --         --    0.18    0.14       0.33
Total                        100.00           -2.38      -2.38     100.00      -5.77       -5.77         --    3.39    3.39     0.64      2.71      -0.05     3.30    0.09       3.39
Calculation Variance                          -0.27                            -0.05                                                                                            -0.22
A t l Return
Actual R t                                     2 65
                                              -2.65                             5 82
                                                                               -5.82                                                                                             3.17
                                                                                                                                                                                 3 17

Holdings Data As Of
  Representative Separate Account Global Developed Strategy - Transactions 12/31/2010 through 12/31/2011
  FTSE EPRA/NAREIT Developed Index 12/31/2010 through 12/31/2011
Returns are presented in US Dollars.




                                       Please read Global Diversified Developed Strategy Performance Notes page for important disclosure information.                  27
                                                Please read Attribution Analysis Performance Notes page for important disclosure information.
12 Months Ending 12/31/11
Appendix: Portfolio
Appraisal & Annual
Performance                                City of Fresno Portfolio Appraisal
Quantity   Security                               Unit Cost       Total Cost        Price    Market Value   Pct. Assets   Cur. Yield
  19,300   Alexandria Real Estate Equities Inc.    $ 69.24    $  1,336,395      $    68.97   $  1,331,121         3.6%         2.8%
  12,089   Avalonbay Communities, Inc.              102.10       1,234,227          130.60      1,578,823         4.3%         2.7%
  14,600   BRE Properties, Inc.                      48.13         702,694           50.48        737,008         2.0%         3.0%
  20,425   Boston Properties, Inc.                   83.87       1,713,125           99.60      2,034,330         5.5%         2.2%
  19,700   Brookfield Properties Corp.               19.08         375,842           15.64        308,108         0.8%         3.6%
  16,575   Camden Property Trust                     59.67         988,969           62.24      1,031,628         2.8%         3.1%
  30,600
    ,                   p
           Cousins Properties Inc.                    8.53         261,058
                                                                      ,               6.41           ,
                                                                                                  196,146         0.5%         2.8%
  68,250   DDR Corp.                                 12.82         874,826           12.17        830,603         2.3%         3.9%
  45,975   DiamondRock Hospitality Company            7.47         343,490            9.64        443,199         1.2%         3.3%
  31,100   Douglas Emmett, Inc.                      18.65         579,923           18.24        567,264         1.5%         2.9%
  48,650   Duke Realty Corporation                   13.17         640,799           12.05        586,233         1.6%         5.6%
   3,950   Equity Lifestyle Properties, Inc.         63.59         251,162           66.69        263,426         0.7%         2.2%
  25,950   Equity One, Inc.                          15.98         414,710           16.98        440,631         1.2%         5.2%
  36,700   Equity Residential                        54.79       2,010,930           57.03      2,093,001         5.7%         4.0%
   4,525   Essex Property Trust Inc.                126.63         572,981          140.51        635,808         1.7%         3.0%
  13,875   Extra Space Storage Inc                   21.96         304,638           24.23        336,191         0.9%         2.3%
  20,400   First Industrial Realty                   12.01         245,070           10.23        208,692         0.6%         0.0%
   8,225   Forest City Enterprise CL A               12.07          99,272           11.82         97,220         0.3%         0.0%
  73,675   Glimcher Realty Trust                      8.83         650,447            9.20        677,810         1.8%         4.3%
  33,225   HCP Inc.                                  36.21       1,203,226           41.43      1,376,512         3.7%         4.8%
  31,250   Health Care REIT Inc.                     49.74       1,554,524           54.53      1,704,063         4.6%         5.4%
  72,978   Host Hotels & Resorts, Inc.               15.78       1,151,327           14.77      1,077,885         2.9%         1.4%
  15,600   Hyatt Hotels Corp Class A                 36.22         564,980           37.64        587,184         1.6%         0.0%
  15,600   Kilroy Realty Corp.                       34.26         534,492           38.07        593,892         1.6%         3.7%
  22,850   Kimco Realty Corporation                  18.29         417,848           16.24        371,084         1.0%         4.7%
   5,900   Liberty Property Trust                    28.67         169,163           30.88        182,192         0.5%         6.2%
   5,300   Mid-America Apartment Communities         61.12         323,954           62.55        331,515         0.9%         4.2%
  75,034   Prologis Inc.                             33.15       2,487,576           28.59      2,145,222         5.8%         3.9%
  16,750   Public Storage, Inc.                      82.17       1,376,369          134.46      2,252,205         6.1%         2.8%
  12,400   RLJ Lodging Trust                         18.00         223,200           16.83        208,692         0.6%         3.6%
  23,450   Regency Centers Corp.                     41.34         969,479           37.62        882,189         2.4%         4.9%
  13,200   SL Green Realty Corp                      74.26         980,190           66.64        879,648         2.4%         1.5%
  13,925   Sabra Health Care REIT Inc                14.75         205,394           12.09        168,353         0.5%        10.6%
  35,684   Simon Property Group, Inc.                97.07       3,463,968          128.94      4,601,095        12.5%         2.8%
   7,200   Strategic Hotel Capital Inc                5.07          36,504            5.37         38,664         0.1%         0.0%
  16,150   Taubman Centers, Inc.                     55.15         890,596           62.10      1,002,915         2.7%         2.9%
   8,275   UDR, Inc.                                 25.24         208,889           25.10        207,703         0.6%         3.4%
  33,375   Ventas Inc.                               53.29       1,778,482           55.13      1,839,964         5.0%         4.2%
  16,019   Vornado Realty Trust                      84.06       1,346,591           76.86      1,231,220         3.3%         3.6%
                                                              $ 33,487,307                   $ 36,079,437        97.9%         3.4%
Cash and Equivalents
            Accrued US Dividends                              $       110,423                $    110,423         0.3%         0.0%
            US Dollars                                        $       662,984                $    662,984         1.8%         0.0%
                                                              $       773,407                $    773,407         2.1%         0.0%
                                                                                                                                       28
TOTAL PORTFOLIO                                               $ 34,260,713                   $ 36,852,843       100.0%          3.3%
As of 12/31/11
Appendix: Portfolio
Appraisal & Annual
Performance                            City of Fresno Annual Performance
                              45%


                              35%


                              25%


                              15%


                               5%


                               -5%


                             -15%


                             -25%


                             -35%


                              45%
                             -45%
                                        Aug - Dec
                                                    2006      2007      2008     2009     2010     2011
                                          2005
       City of Fresno (gross of fee)     0.39%      33.70%   -17.02%   -38.90%   27.49%   26.34%   12.02%
       Wilshire US RESI*                -0.77%      35.67%   -17.66%   -39.83%   29.19%   29.12%    8.56%
       Spread                           +1.16%      -1.97%   +0.64%    +0.93%    -1.70%   -2.78%   +3.46%




* Wilshire U.S. Real Estate Securities Index.                                                             29
Periods Ending 12/31/11 – Total Returns
Appendix:
Additional Global
                                     Global Diversified Developed Strategy:
Performance Data                     Risk-Adjusted Performance


                                                        Since Inception (12/31/10)
                                              Global Diversified
                                             Developed Strategy              FTSE EPRA/NAREIT
                                                (Gross of Fee)1               Developed Index


  Annualized return                                  -2.65%                         -5.82%


  Excess return over 90-day T-bills2                 -2.69%                         -5.87%
  Annualized standard deviation                     21.97%                         21.59%
  Sharpe Ratio3                                      -0.01                          -0.01


  Excess return over benchmark                                       3.17%
  Tracking error vs. benchmark                                       0.93%
  Information Ratio                                                   3.42


  Alpha                                                               3.48
  Beta                                                                1.02
  R2                                                                  1.00
                                                                      1 00



  1 Returns are calculated and presented in USD. December 2011 returns are preliminary.
  2 Linked monthly excess returns over risk-free T-bills.
  3 For the periods when the excess returns over risk-free T-bills are negative, the Sharpe ratio has been adjusted to the Modified Sharpe Ratio.




                                                                                                                                                    30
                             Please read Global Diversified Developed Strategy Performance Notes page for important disclosure information.
Periods Ending 12/31/11
Appendix:
Additional Global
                                                 Global Diversified Rental Strategy:
Performance Data                                 Attribution Analysis
+ Heitman Global Diversified Rental Strategy out-performed the benchmark (FTSE EPRA/NAREIT Developed Rental Index) by
  206 bps (2.53% preliminary vs. 0.47%).
+ Security selection added 175 bps to relative performance.
      + Strong selection in the United States added 282 bps to relative performance, driven by overweighting Simon Property Group and
        Digital Realty Trust.
      − W k selection in Australia/New Z l d d
        Weak l i i A             li /N                    d
                                          Zealand detracted 54 b f
                                                               bps from relative performance, d i
                                                                          l i       f                by holding Stockland Australia outside
                                                                                              driven b h ldi S kl d A           li      id
        of the benchmark, and by underweighting Commonwealth Property Office Fund.
      − Weak selection in Asia Ex-Japan detracted 33 bps from relative performance, driven by underweighting Link REIT, and by holding
        Country Garden Holdings outside of the benchmark.
+ Regional allocation (excluding cash) added 24 bps to relative performance.
      + Overweight of Asia Ex-Japan during period of outperformance added 24 bps to relative performance.
      + U d     i h f Europe added 6 b to relative performance.
        Underweight of E        dd d bps         l i      f
+ Cash position of 1.33% added 4 bps to relative performance.
      + Total currency effect added 12 bps to relative performance.


                                                                                                                                                 Attribution Analysis
                               Representative Separate Account
                                 p                p                                /
                                                                        FTSE EPRA/NAREIT                                                 Local Currencyy
                                  Global Diversified Strategy         Developed Rental Index             Variation          Regional Security                         Total    Total
                                Average     Total      Contribution Average   Total Contribution Average Total Contribution Allocation Selection Interaction Total Currency    Effect
 Region/Country                 Weight     Return       To Return    Weight Return To Return     Weight Return To Return      Effect    Effect      Effect     Effect Effect U.S. Dollar
 UNITED STATES                   54.89        13.47         7.60     55.64      7.71      4.74    -0.76    5.75     2.86       -0.03      2.82       -0.04     2.76    0.02      2.78
 JAPAN                             4.43      -19.00        -1.12      4.32   -20.09      -1.06     0.10    1.09    -0.06       -0.01      0.05        0.03     0.07    0.05      0.12
 CANADA                            5.07       18.46         0.82      5.17    17.15       0.78    -0.11    1.31     0.04       -0.02      0.05        0.00     0.03    0.00      0.04
 MIDDLE EAST                          --            --          --    0.15 -15.01        -0.02    -0.15  15.01      0.02        0.02          --          --   0.02    0.01      0.03
 ASIA EX-JAPAN                     6.53      -20.86        -1.54      6.35   -16.76      -1.40     0.18   -4.10    -0.14        0.24     -0.33       -0.02    -0.11    0.00     -0.11
 UNITED KINGDOM                    7.13        -9.95       -0.73      7.01     -8.36     -0.64     0.11   -1.59    -0.09       -0.01     -0.06       -0.01    -0.07   -0.05     -0.12
 EUROPE                          12.25       -16.02        -1.70     12.38   -13.97      -1.63    -0.13   -2.05    -0.07        0.06     -0.24       -0.01    -0.19    0.03     -0.16
 AUSTRALIA / NEW ZEALAND           8.39        -7.35       -0.67      8.97    -1.25      -0.22    -0.58   -6.10    -0.45       -0.02     -0.54        0.03    -0.53    0.05     -0.47
 Relative Performance Excluding Cash                                                                                            0.24      1.75       -0.01     1.98    0.12      2.10
 CASH                              1.33        -3.97        0.03          --        --       --    1.33   -3.97     0.03        0.02          --          --   0.02    0.02      0.04
 Total                          100.00          2.69        2.69    100.00      0.55      0.55        --   2.14     2.14        0.26      1.75       -0.01     2.00    0.15      2.14
 Calculation Variance                              -0.16                              -0.08                                                                                      -0.08
 Actual Return                                      2.53                               0.47                                                                                       2.06
 Holdings Data As Of
   Representative Separate Account Global Diversified Rental Strategy - Transactions 12/31/2010 through 12/31/2011
   FTSE EPRA/NAREIT Developed Rental Index 12/31/2010 through 12/30/2011
 Returns are presented in US Dollars.

                                         Please read Global Diversified Rental Strategy Performance Notes page for important disclosure information.                     31
                                               Please read Attribution Analysis Performance Notes page for important disclosure information.
12 Months Ending 12/31/11
Appendix:
Additional Global
                                       Global Diversified Rental Strategy:
Performance Data                       Risk-Adjusted Performance


                                                                   3 Years                                               Since Inception (7/31/07)
                                              Global Diversified                                               Global Diversified
                                               Rental Strategy              FTSE EPRA/NAREIT                    Rental Strategy               FTSE EPRA/NAREIT
                                               (Gross of Fee)1           Developed Rental Index                 (Gross of Fee)1           Developed Rental Index


 Annualized return                                 19.32%                          18.92%                            -1.35%                        -2.73%


 Excess return over 90-day T-bills2                19.19%                          18.79%                            -2.09%                        -3.46%
 Annualized standard deviation                     24.55%                          26.46%                           27.23%                        29.15%
 Sharpe Ratio3                                      0.78                            0.71                             -0.01                         -0.01


 Excess return over benchmark                                       0.40%                                                            1.38%
 Tracking error vs. benchmark                                       3.22%                                                            3.11%
 Information Ratio                                                   0.12                                                             0.44


 Alpha                                                               1.49                                                             0.96
 Beta                                                                0.92                                                             0.93
 R2                                                                  0.99
                                                                     0 99                                                             0 99
                                                                                                                                      0.99



 1 Returns are calculated and presented in USD. December 2011 returns are preliminary.
 2 Linked monthly excess returns over risk-free T-bills.
 3 For the periods when the excess returns over risk-free T-bills are negative, the Sharpe ratio has been adjusted to the Modified Sharpe Ratio.




                                                                                                                                                            32
                                Please read Global Diversified Rental Strategy Performance Notes page for important disclosure information.
Periods Ending 12/31/11
Appendix:
Additional Global
                                                Global Focused Rental Strategy:
Performance Data                                Attribution Analysis
+ Heitman Global Focused Rental Strategy out-performed the benchmark (FTSE EPRA/NAREIT Developed Rental Index) by 194
  bps (2.41% preliminary vs. 0.47%).
+ Security selection added 197 bps to relative performance.
    + Strong selection in the United States added 72 bps to relative performance, driven by underweighting Simon Property Group and
      Digital Realty Trust.
    − Weak selection in Asia E Japan detracted 27 bps from relative performance, driven by underweighting Link REIT the best performing
                               Ex-Japan                      relati e performance dri en b nder eighting          REIT,
      security in the region, and by overweighting Hongkong Land Holdings, the worst performing security in the region.
    − Weak selection in Australia/New Zealand detracted 50 bps from relative performance, driven by holding Stockland Australia outside
      of the benchmark and underweighting Commonwealth Property Office Fund.
+ Regional allocation (excluding cash) added 11 bps to relative performance.
    + Underweight of Asia Ex-Japan added 40 bps to relative performance. Asia Ex-Japan was the second worst performing region of the
      benchmark.
      benchmark
    − Underweighting of Australia/New Zealand detracted 8 bps from relative performance.
    − Overweighting of Japan detracted 21 bps from relative performance. Japan was the worst performing region in the benchmark.
+ Cash position of 1.46% added 3 bps to relative performance.
    + Total currency effect added 12 bps to relative performance.

                                                                                                                                                    Attribution Analysis
                                  Representative Separate Account         FTSE EPRA/NAREIT                                                  Local Currency
                                     Global Diversified Strategy        Developed Rental Index              Variation           Regional Security                        Total     Total
                                   Average     Total     Contribution Average    Total Contribution Average Total Contribution Allocation Selection Interaction Total Currency    Effect
    Region/Country                 Weight     Return      To Return   Weight Return To Return       Weight Return To Return      Effect    Effect      Effect     Effect Effect U.S. Dollar
    UNITED STATES                   54.93        13.42        7.45     55.64       7.71     4.74     -0.71    5.70     2.71       -0.05      2.72       -0.03     2.64    0.03       2.67
    EUROPE                          12.31       -13.68       -1.38     12.38    -13.97     -1.63     -0.07    0.29     0.25        0.06      0.10       -0.02     0.14    0.07       0.21
    ASIA EX-JAPAN                    5.93       -20.10       -1.35      6.35    -16.76     -1.40     -0.42   -3.34     0.05        0.40     -0.27        0.01     0.14    0.02       0.16
    MIDDLE EAST                          --           --          --    0.15    -15.01     -0.02     -0.15  15.01      0.02        0.02          --          --   0.02    0.01       0.03
    UNITED KINGDOM                   7.15         -8.87      -0.61      7.01      -8.36    -0.64      0.13   -0.51     0.03       -0.02      0.04       -0.01     0.01   -0.04      -0.03
    CANADA                           5.06        16.04        0.71      5.17     17.15      0.78     -0.11   -1.11    -0.07       -0.02     -0.04       -0.00    -0.06    0.00      -0.05
    JAPAN                            4.50       -21.84       -1.40      4.32 -20.09        -1.06     0.17    -1.75    -0.34       -0.21     -0.09        0.01    -0.29   -0.00      -0.29
    AUSTRALIA / NEW ZEALAND          8.66         -7.05      -0.73      8.97      -1.25    -0.22     -0.31   -5.80    -0.51       -0.08     -0.50        0.00    -0.57    0.03      -0.54
    Relative Performance Excluding Cash                                                                                            0.11      1.97       -0.04     2.03    0.12       2.15
    CASH                             1.46        22.54        0.05          --        --        --    1.46  22.54      0.05       -0.03          --          --  -0.03    0.06       0.03
    Total                          100.00          2.73       2.73    100.00       0.55     0.55         --   2.18     2.18        0.08      1.97       -0.04     2.00    0.18       2.18
    Calculation Variance                             -0.32                             -0.08                                                                                        -0.24
    A t lR t
    Actual Return                                     2.41
                                                      2 41                              0.47
                                                                                        0 47                                                                                         1 94
                                                                                                                                                                                     1.94
    Holdings Data As Of
      Representative Separate Account Global Focused Strategy - Transactions 12/31/2010 through 12/31/2011
      FTSE EPRA/NAREIT Developed Rental Index 12/31/2010 through 12/30/2011
    Returns are presented in US Dollars.

                                           Please read Global Focused Rental Strategy Performance Notes page for important disclosure information.                               33
                                                Please read Attribution Analysis Performance Notes page for important disclosure information.
12 Months Ending 12/31/11
Appendix:
Additional Global
                                       Global Focused Rental Strategy:
Performance Data                       Risk-Adjusted Performance


                                                                   3 Years                                             Since Inception (3/31/07)
                                              Global Focused                                                  Global Focused
                                              Rental Strategy              FTSE EPRA/NAREIT                   Rental Strategy               FTSE EPRA/NAREIT
                                               (Gross of Fee)1          Developed Rental Index                 (Gross of Fee)1             Developed Rental Index


 Annualized return                                 19.77%                         18.92%                           -3.94%                         -5.49%


 Excess return over 90-day T-bills2                19.64%                         18.79%                           -4.94%                         -6.48%
 Annualized standard deviation                     24.21%                         26.46%                           26.57%                         28.52%
 Sharpe Ratio3                                      0.81                           0.71                             -0.01                          -0.02


 Excess return over benchmark                                      0.85%                                                           1.55%
 Tracking error vs. benchmark                                      3.87%                                                           3.48%
 Information Ratio                                                  0.22                                                            0.45


 Alpha                                                              2.12                                                            0.98
 Beta                                                               0.91                                                            0.93
 R2                                                                 0.98
                                                                    0 98                                                            0 99
                                                                                                                                    0.99



 1 Returns are calculated and presented in USD. December 2011 returns are preliminary.
 2 Linked monthly excess returns over risk-free T-bills.
 3 For the periods when the excess returns over risk-free T-bills are negative, the Sharpe ratio has been adjusted to the Modified Sharpe Ratio.




                                                                                                                                                           34
                                 Please read Global Focused Rental Strategy Performance Notes page for important disclosure information.
Periods Ending 12/31/11
Appendix:
Biographies                    Portfolio Managers
Mark Abramson is Managing Director and the lead Portfolio Manager for Heitman’s European real estate securities strategies and
along with Tim Pire and John White, also serves as a Portfolio Manager for the firm’s global real estate securities strategies. Prior to
joining Heitman, Mark was Senior Managing Director at Bear Stearns & Co, where he was a sell-side equity research analyst for 11
years. In that time, Mark had the unusual opportunity to cover companies in various industry sectors in Europe, the US, Asia and Latin
America. He achieved the noteworthy distinction of a #1 sector ranking in 1997 in the prestigious Institutional Investor magazine
survey of Wall Street analysts and other awards and recognition since then for his analysis. For his last seven years at the investment
bank, Mark focused on the global hospitality and leisure industries, including coverage of specialist REITs in North America and other
hospitality oriented real estate companies in Europe and Asia. He was the only investment analyst among his Wall Street peer group
to have been top-ranked in both the European and the U.S. markets for his research on the hospitality sector. Mark’s investment
recommendations were widely cited in international financial press and other media and he was regularly invited to present his market
insights at industry conferences, universities and other venues. Mark’s academic training focused on economics and international
public p
p           y                 p              y (BA),
       policy at the Johns Hopkins University ( ), American University (MA) and the University of Maryland (post-graduate studies).
                                                                      y( )                    y        y     (p   g                 )

Tim Pire, CFA is Managing Director and the lead Portfolio Manager for Heitman’s North American real estate securities strategies and
along with Mark Abramson and John White, also serves as a Portfolio Manager for the firm’s global real estate securities strategies.
Tim is an equity owner of the firm and has been analyzing REIT securities at Heitman since 1992. As one of the industry’s most
seasoned REIT analysts, Tim brings a unique perspective to the portfolio management team through his previous association with
Lyon, Skelte & Speirs as an Associate Appraiser. As an appraiser, Tim was responsible for visiting, analyzing and valuing retail,
apartment, office and industrial properties, primarily in the Northwest. Tim received an MS in Real Estate with an emphasis in Finance
and a BBA in Business with an emphasis in Finance, both from the University of Wisconsin. Among other professional affiliations, Tim
is on the Board of Advisors for the Center of Real Estate of the University of Wisconsin-Madison School of Business. He is also on the
Real Estate Board of Advisors for the Stephen L. Hawk Center for Applied Security Analysis of the University of Wisconsin-Madison
School of Business and is a member of NAREIT.

John White is Managing Director and the lead Portfolio Manager for Heitman’s Asia-Pacific real estate securities strategies and along
with Tim Pire and Mark Abramson, also serves as a Portfolio Manager for the firm’s global real estate securities strategies. He has
over 19 years of experience in the public and private, equity and debt real estate markets across the Asia-Pacific region. Prior to
joining Heitman in June 2010, John was Co-Head Real Estate Securities at Challenger for five years and was Senior Investment
Manager Real Estate Securities at HSBC Asset Management from 2001. Before moving to investment management, John worked in
investment banking as a Senior Property Trust Analyst at HSBC and Manager – Real Estate Credit at ANZ Banking Group in Australia
   d in South East A i H b
and i S h E                        hi                  l
                   Asia. He began his career as a real estate valuer at L d
                                                                 l                   d Chesterton. John holds a Bachelor of Business
                                                                         Landauer and Ch            J h h ld       B h l      fB i
(Land Economy) and a Graduate Diploma in Applied Finance and Investment. He is a member of the Royal Institute of Chartered
Surveyors, Asian Public Real Estate Association, Australian Property Institute and the Financial Services Institute of Australasia.
                                                                                                                              35
Appendix:
Biographies                     Assistant Portfolio Managers
Catriona Forrester is the Assistant Portfolio Manager for Heitman's Asia-Pacific Public Real Estate Securities group and is based in
Melbourne. She has over seven years of experience in the direct and indirect real estate markets in the Asia Pacific region. Prior to
joining Heitman in October 2010, Catriona was a Property Securities Analyst / Portfolio Manager at ING Investment Management for
over four years. Before ING Investment Management, Catriona was the Fund Analyst for the ING Industrial Fund, where she was involved
in financing and structuring of Australian and European transactions, trust management, property analysis and research from 2004. Prior
to this, Catriona was on the Westfield finance graduate program where she worked in various accounting, corporate finance,
development and leasing divisions. Catriona started her career as a Tax Consultant in a mid-tier chartered accounting firm. Catriona
holds a Bachelor of Arts from the University of New South Wales, Master of Legal Studies from University of Technology Sydney, Master
of Commerce from Deakin University and a Master of Applied Finance from Macquarie University.

Mike Moran, CFA, Vice President, is an Assistant Portfolio Manager for Heitman’s U.S. Public Real Estate Securities group. In this role,
           p                               p y                   y      pp     g                                       ,
Mike is responsible for fundamental company and market analysis supporting his stock recommendations. In addition, Mike monitors
trading operations and assists with the overall maintenance of portfolio weights and equity trading. He also works with Client Service to
understand the needs, situations and objectives of Heitman’s clients. Mike is responsible for identifying and implementing best
practices across the team, including the development and enhancement of Heitman’s valuation techniques. Prior to joining Heitman,
Mike was with RHS Companies as a Development Associate, where he was responsible for developing financial models and performing
investment analysis, feasibility analysis and due diligence for potential development projects. He also was a project manager for a large
mixed use land development project and a condo-hotel project. Mike received a BBA and MBA from the University of Wisconsin-Madison.

Michael Shoemacher is an Assistant Portfolio Manager for Heitman’s European public real estate securities group in London. His role
with Heitman focuses on fundamental company and market analysis supporting the portfolio management process. Michael spent two
years with the U.S. public real estate securities group before relocating to the Europe in 2007. Prior to joining Heitman, Michael was
with TCF National Bank as an Underwriter/Credit Officer in the commercial lending division. He was responsible for analyzing financial
statements, examining collateral coverage, and forecasting cash flows for both corporate and commercial real estate transactions – with
exposure to numerous industries and property types. Michael received a BS in Finance from Miami University in Oxford, Ohio.

Jeff Yurk, CFA, Vice President, is an Assistant Portfolio Manager for Heitman’s U.S. Public Real Estate Securities group. In this role,
Jeff is responsible for fundamental company and market analysis supporting his stock recommendations. In addition, Jeff is responsible
for facilitating Heitman’s Global Public Real Estate Securities team processes and reporting. Jeff works with Heitman’s Client Service
group to understand the needs, situations and objectives of the firm’s clients. Jeff is also tasked with identifying and implementing best
      i             h           h
practices across the team, such as Heitman’s Th i R i P
                                     H i                                  Prior j i i H i         J ff       i h P i i l Gl b l Investors
                                              ’ Thesis Review Process. P i to joining Heitman, Jeff was with Principal Global I
where he was responsible for providing quantitative and qualitative research on seasoned CMBS issuances with a focus on forecasting
the default probabilities on the underlying real estate. Jeff received a BBA and MBA from the University of Wisconsin-Madison.
                                                                                                                              36
Appendix:
Biographies                    Analysts
Charles Harbin is a Senior Equity Analyst for Heitman’s U.S. Public Real Estate Securities group. His role with Heitman focuses on
fundamental company and market analysis supporting the portfolio management team. Prior to joining the firm, he was with Deutsche
Bank/RREEF as a Senior Analyst/Vice President, developing long/short equity and debt investments for its multi-strategy, multi-asset
class hedge fund. Prior to RREEF, Charles was a long/short equity analyst for Renascent Capital Management and a derivatives analyst
for Prebon Yamane, a financial brokerage and consulting firm. Charles received a BA in Economics with honors from Sewanee, The
University of the South.

Jeffrey Mak, CFA, is a Senior Equity Analyst for Heitman's Asia-Pacific Public Securities group and is based in Melbourne. His role with
Heitman focuses on fundamental company and market analysis supporting the portfolio management team. Prior to joining Heitman,
Jeffrey was an equity analyst in the Global Property Securities team at Perennial Investment Partners. His primary responsibility was to
provide fundamental company and market analysis of Australian and New Zealand property securities to support his stock
recommendations. He was also involved in equity trading for stocks in the Asian and Australian markets, as well as currency hedging for
global portfolios. Before Perennial, Jeffrey held a number of roles at Colonial First State in their Research and Performance teams,
including Acting Head of Performance. Jeffrey holds a Bachelor of Commerce and Bachelor of Laws from Monash University.

Adam Cristelli is an Equity Analyst for Heitman’s U.S. Public Real Estate Securities group. His role with Heitman focuses on
fundamental company and market analysis supporting the portfolio management team. Adam received a BS in Business Administration
from Colorado State University, where he introduced and managed the Colorado State University REIT Fund. Also while there, he
   ti i t d i         (N ti   lA      i ti   f I d t i l d Offi Properties).
participated in NAIOP (National Association of Industrial and Office P    ti )

Rachel Lau is an Analyst with Heitman’s Asia-Pacific Public Securities group. Based in Hong Kong, her role with Heitman focuses on
fundamental company and market analysis supporting the portfolio management team. Prior to joining Heitman, Rachel was an
investment analyst with ING Investment Management in Hong Kong, Atlanta and New York. There, Rachel worked in the Asian Equities
team with a focus on Asian real estate, emerging market debt and multi-asset strategies and solutions. Her primary responsibilities
                                                                                   firms
included conducting fundamental valuation and analysis on Asia-Pacific real estate firms, developing investment theses on corporate
credit and monitoring and analyzing macroeconomic intelligence on Asian countries to forecast macroeconomic trends and patterns.
Rachel received her Bachelor of Commerce in Australian National University and holds a Masters of Business Law from the University of
Sydney. She is fluent in English, Mandarin, Cantonese and Bahasa.

Andreas Welter is an Analyst for Heitman’s European Public Real Estate Securities group. His role with Heitman focuses on
                   p y                  y       pp    g
fundamental company and market analysis supporting the p   portfolio management team. Prior to joining Heitman, Andreas was at
                                                                         g                      j    g         ,
Deutsche Bank AG, one of the world’s leading investment banks and brokerage houses, where he was a sell-side equity research analyst
for 3 years. In that time, Andreas covered companies in various industry sectors in Germany (Real Estate, Financials, Construction,
Logistics). Prior to that, Andreas worked at the Buyside and Execution Desk of B. Metzler seel. Sohn, one of Germany’s biggest family-
owned investment managers. Andreas holds a business degree from University of Applied Sciences in Darmstadt                  37
and University of Oshkosh, Wisconsin.
Appendix:
Biographies                     Operations
Richard Kateley is Executive Vice President and Chief Operating Officer of Heitman’s Public Real Estate Securities group, where he
oversees the firm’s operations in North America, Europe and Asia-Pacific. Earlier, he served as a senior portfolio manager for private
equity separate accounts and was a member of the Client Service and Marketing group. Prior to joining Heitman in 1992, Richard spent
15 years at Real Estate Research Corporation, the last four as President and CEO of this consulting and valuation firm. His consulting
engagements included projects in China, the Middle East and Europe, as well as major U.S. markets. Richard has authored numerous
                                   journals                                                                                   Chicago.
articles in professional and trade journals. Richard holds a BA from the University of Texas and an MA from the University of Chicago He
was a Fulbright Fellow and has lived and studied in the Middle East. He is a member of the Association of Foreign Investors in Real
Estate, the Urban Land Institute and the Economic Club of Chicago.

Nikki Bair, CFA is Vice President and Senior Portfolio Analyst for Heitman’s U.S. Public Real Estate Securities group. Her role with
Heitman focuses on analytical support for the portfolio management team and Heitman clients, including company and portfolio
analysis. She also works closely with the investment consultant community providing information and analysis on the public REIT
market and Heitman’s public real estate securities portfolio management strategy. Prior to joining the firm, she was with DePaul
University’s Department of Finance as an instructor concentrating in such areas as financial management, real estate
analysis/investment and options. Nikki graduated with honors with a BS in Finance and Marketing from DePaul University, where she
went on to complete her MS in Finance.

        g
Bill Pogorelec is Vice President of Operations and Client Reporting for Heitman’s U.S. Public Real Estate Securities g p He currently
                                     p                      p     g                                                  group.              y
oversees the trading administrators and staff accountants, ensuring that all reporting is completed and all trades are settled
accurately and in a timely manner. Bill began his career at Heitman in Heitman's Investor Accounting group in 1995 where he was
responsible for the accounting and reporting for several domestic accounts as well as Heitman's international holdings. Prior to joining
Heitman, Bill was an accountant in the real estate group of Kemper Insurance. Bill received a BS from Purdue University and is a
certified public accountant.

Mark Zahara, Vice President, is the Head Trader for Heitman Real Estate Securities (HRES) and Heitman International Real Estate
Securities (HIRES). He manages the trading for all account platforms. Prior to joining Heitman, Mark managed a team of portfolio
investment analysts and traded index futures at Performance Analytics, Inc. His experience analyzing market conditions and applying
technical fundamentals and indicators allows him to manage and execute efficiently for Heitman’s portfolios. Mark received his Bachelor
of Science in Finance from Northern Illinois University and his Masters in Financial Markets from the Illinois Institute of Technology.




                                                                                                                               38
Appendix:
Biographies                     Operations
Eric Cadogan, Assistant Vice President, is a Trader for Heitman’s U.S. Public Real Estate Securities group. His role with Heitman
focuses on trading all account platforms. Prior to joining the firm in 2002, Eric was involved with the analysis of securities for Hartline
Investment Corporation and he performed benefits administration consulting for Towers Perrin. Eric received a BA in Economics and
Management, magna cum laude, from Albion College, where he was a member of the Carl A. Gerstacker Liberal Arts Institute for
Professional Management (honors business institute).

Shruti Waghray is a Portfolio Analyst for Heitman’s U.S. Public Real Estate Securities group. Her role with Heitman focuses on analytical
support for the portfolio management team and Heitman clients, including company and portfolio analysis. She also works closely with
the investment consultant community providing information and analysis on the public REIT market and Heitman’s public real estate
securities portfolio management strategy. Prior to joining the firm, she was with ABN AMRO Bank as a Financial Analyst. Shruti received
a BS in International Business and Computer Science from North Central College.

Larry Laurin is a Portfolio Accountant for Heitman’s U.S. Public Real Estate Securities group. He is responsible for monthly and
quarterly financial reporting, which includes performance returns and reconciliation of positions and trading activity with custodians. Prior
to joining the public real estate securities group Larry worked in Heitman’s Investor Accounting group where he was responsible for
financial reporting and property valuations. Larry received a BS in Accounting from DePaul University.

Becki Shaffer is a Trading Administrator in Heitman’s U.S. Public Real Estate Securities group. Her responsibilities include account
                          g                                                                g p             p
servicing and reconciliation, fail control, trade confirm processing, and marketing assistance. Prior to joining Heitman, she was
responsible for placing equity trades and processing accounts for a money management firm in downtown Chicago. Becki received a
college diploma from Moody Bible Institute in Chicago and a 1-yr. certificate in Accounting & Business from Robert Morris College.




                                                                                                                                 39
Appendix:
Biographies                      Compliance
Randall Ramey is Deputy Compliance Officer of Public Real Estate Securities and Compliance Officer and Director of Internal Audit.
Randy is responsible for developing, implementing and conducting the firm’s compliance program including performing internal audits
and monitoring procedures and controls enterprise wide in all geographic regions both in the U.S. and globally. Randy reviews the
activities of all of the firm’s business units including the private equity and public securities real estate groups. He started his career
as a regulator with the National Futures Association, where he was directly responsible for the regulatory compliance of approximately
1,000 firms                                         Ward,                               firm s               department.
1 000 firms. Randy then moved to Montgomery Ward where he helped create the firm’s internal audit department Randy received a
BS in Business Administration from the University of Iowa. He is a certified public accountant and a member of the American Institute
of Certified Public Accountants and the Illinois CPA Society, where he chaired the Broker Dealer Committee for two years.

Katie Boysen is the Compliance Manager for Heitman’s Public Securities Group. Previously, she was Senior Internal Auditor for
Heitman and Assistant Compliance Officer within Heitman’s Public Securities Group. Prior to joining Heitman, Katie served as an
auditor in public accounting with Frost, Ruttenberg & Rothblatt, P.C., where she participated in financial audits for a variety of
industries, including real estate. Katie then moved to Reznick Group, P.C., where she led financial audits with an emphasis on
government compliance.Katie received her BS in Accountancy from the University of Illinois in Champaign-Urbana. She is a Certified
Public Accountant and a member of the American Institute of Certified Public Accountants.




                                                                                                                                  40
Appendix:
Performance Notes                                         U.S. Diversified Wilshire Strategy
            Total Return   Total Return Wilshire US RESI                     Total Composite AssetsTotal Firm Assets                        Total Return Total Return Wilshire US RESI                     Total Composite AssetsTotal Firm Assets
            Net of Fees    Gross of Fees     Return      Number of Standard      at End of Period   at End of Period Percentage of           Net of Fees Gross of Fees     Return      Number of Standard      at End of Period   at End of Period Percentage of
     Year    (percent)       (p ercent)     (percent)    Portfolios Deviation       ($ millions)      ($ millions)    Firm Assets    Year     (percent)    (percent)      (percent)    Portfolios Deviation       ($ millions)      ($ millions)    Firm Assets
     1991      28.00           28.81           20.02     less than 5   N/A             27                  87             31         2001      11.80        12.28           10.45         21        0.54            549                 926             59
     1992      28.29           28.91             7.40    less than 5   N/A             22                  99             22         2002       3.59         4.04            2.63         22        0.20            443               1,009             44
     1993      25.86           26.37           15.23     less than 5   N/A             40                 157             26         2003      37.65        38.26           37.06         30        0.35            908               1,868             49
     1994        7.28            7.78            1.64         7        N/A             82                 208             40         2004      36.69        37.27           34.83         23        0.25          1,074               2,759             39
     1995      12.08           12.60           13.65         11        1.06           125                 245             51         2005      13.26        13.80           13.82         24        0.23            755               3,027             25
     1996      38.74           39.44           36.89         15        0.30           226                 451             50         2006      33.40        34.03           35.67         23        0.13            724               5,082             14
     1997      22.28           22.91           19.76         22        0.47           364                 604             60         2007     -17.24       -16.87          -17.66         20        0.12            486               4,208             12
     1998     -15.61          -15.17          -17.43         22        0.64           385                 693             56         2008     -39.11       -38.83          -39.83         18        0.26            316               2,071             15
     1999       -1.11           -0.62           -3.18        20        0.49           390                 686             57         2009      27.05        27.66           29.20         14        0.68            316               5,582             6
     2000      26.60
               26 60           27 20
                               27.20           30 73
                                               30.73         22        0.35
                                                                       0 35           570                 903             63         2010      25 81
                                                                                                                                               25.81        26 36
                                                                                                                                                            26.36           29 12
                                                                                                                                                                            29.12         11        0.18
                                                                                                                                                                                                    0 18            286               2 789
                                                                                                                                                                                                                                      2,789             10

1.   Heitman Real Estate Securities LLC (“HRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of North American publicly
     traded real estate related companies (REITs – real estate investment trusts and REOCs – real estate operating companies). Heitman International Real Estate Securities
     GmbH (“HIRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of European publicly traded real estate related companies.
     Heitman International Real Estate Securities Pty Limited (“HIRES PTY”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of
     Asia / Pacific publicly traded real estate related companies. HRES, HIRES and HIRES PTY (collectively, “Heitman”) are limited liability companies whose sole member is
     Heitman LLC. The members of Heitman LLC are Old Mutual (HFL) Inc. (wholly owned by Old Mutual plc) and a group of key Heitman and Heitman LLC employees.
2.   This composite includes all discretionary, U.S. Diversified strategy, non-wrap fee, non-Strategic Portfolio Advisor, non-Morgan Stanley quasi-wrap fee, non-mutual fund clients,
     and portfolio accounts not subject to foreign withholding taxes invested primarily in U.S. publicly traded real estate securities, except that an account is excluded from the
                                                    flow                                                                                                 $25,000,000
     composite in the event of a significant cash flow. Heitman defines a significant cash flow as a contribution or withdrawal equal to or more than $25 000 000 or 25% of an
     account's market value, in the aggregate, during any one month. Additional information on Heitman's cash flow policy is available upon request. This composite is
     benchmarked to the Wilshire U.S. Real Estate Securities Index. This composite was previously known as the Core Strategy Composite.
3.   This report has been prepared and presented in compliance with the Global Investment Standards (GIPS®). Heitman has been verified by an independent “Big 4” accounting
     firm through December 31, 2009. A copy of their report is available upon request.
4.   Trade date settlement valuation is used and dividends are recorded on “ex-date” for this composite. This composite is denominated in U.S. dollars.
5.   The Wilshire U.S. Real Estate Securities Index (“Wilshire U.S. RESI”) is a market capitalization weighted index of publicly traded real estate securities including REITs and
     REOCs. Beginning in January, 2005 the Wilshire U.S. RESI is presented in the “float adjusted” version. Prior to January, 2005 the Wilshire U.S. RESI was presented in the “full
     cap” version. The Dow Jones Industrial Average is the measure of the performance of 30 “blue-chip” stocks, considered the leaders of the market. The Merrill Lynch
     Government/Corporate Bond Index is an index composed of U.S. treasuries, agencies and corporates with maturities from 1 to 4.99 years. Corporates are investment grade
     only (BBB or higher). The NCREIF (National Council of Real Estate Investment Fiduciaries) Index is the NCREIF Property Index (a market weighted index that measures the
     historical performance of income producing properties owned by commingled funds on behalf of qualified pension and profit-sharing trusts, or owned directly by these trusts and
     managed on a separate account basis) calculated to reflect the quarterly returns on a compounded basis. The FTSE NAREIT (National Association of Real Estate Investment
     Trusts) Index is a total return performance index of all equity REITs tracked by FTSE NAREIT. The Russell 2000 Index is comprised of the smallest 2000 companies in the
     Russell 3000 Index, representing approximately 11% of the Russell 3000 total market capitalization. The S&P 500 Index is an unmanaged index generally considered to be
     representative of the large cap segment of the market. The Indices are presented for illustrative purposes only and are not intended to imply Heitman’s past or future
     performance. The performance of the Indices assumes dividend reinvestment, but do not reflect transaction costs, advisory fees, custodian fees, trading costs and other costs
     of investment. Individuals cannot directly invest in any of the Indices described above.
6.   The dispersion of annual returns is measured using a simple annual standard deviation of accounts in the composite for the entire year. For the purpose of this presentation, a
     significant population count is defined as more than 5 accounts in the composite. Periods with five or fewer accounts are marked “N/A”.
7.   Accounts meeting the criteria explained in item 2. above are included in this composite in the first full month under management. Terminated accounts are included in this
     composite through completion of their last full month under management. Beginning in July, 2003, in the event of a significant cash flow (as defined in 2. above), an account
     is excluded from this composite during the month of the significant cash flow and included in this composite the following month, provided no additional significant cash flows
     occurred. Prior to July 1, 1996, accounts were included in the composite on inception date and excluded on termination date. Beginning in October, 2005, account withdrawal
     cash flows are recorded on the date the cash is raised for withdrawal. Prior to October, 2005, account withdrawal cash flows were recorded on the date the cash was
     withdrawn from the account by the client/custodian. This composite was created in December 2003. Returns for the period December 20, 1990 through December 31, 1990
     are not included in the composite since the period was for less than one month.
8.   Representative fee schedule as of 1/1/04 is as follows: first $10 million – 0.75%; over $10 million to $25 million – 0.65%; over $25 million to $50 million – 0.60%; over $50
                               0.55%;                                    0.50%;                      0.45%.                                                            0 50%
     million to $75 million – 0 55%; over $75 million to $100 million – 0 50%; over $100 million – 0 45% Historical fee schedule before 1/1/04 was as follows: 0.50% on the first
     $50 million and 0.45% on assets over $50 million. Advisory fees are described in Part II of Form ADV (copy available upon request).
9.   Performance results are presented gross and net of management fees. Gross of fees performance is presented before management fees, but after all relevant trading
     expenses and other expenses that may be incurred in the management of an account and all applicable non reclaimable withholding taxes. Net of fees performance is
     presented after management fees and all relevant trading expenses and other expenses that may be incurred in the management of an account and all applicable non
     reclaimable withholding taxes. A complete list of Heitman’s composites and performance results is available upon request. Past performance is no guarantee of future
     results. Advisory fees are described in Part II of Form ADV (available upon request).                                                                               41
Appendix:
Performance Notes                        Global Diversified Developed Strategy

1.   Heitman Real Estate Securities LLC (“HRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of North American publicly
     traded real estate related companies (REITs – real estate investment trusts and REOCs – real estate operating companies). Heitman International Real Estate Securities
     GmbH (“HIRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of European publicly traded real estate related
     companies. Heitman International Real Estate Securities Pty Limited (“HIRES PTY”) is an investment adviser specializing in the investment of equity, convertible and debt
     instruments of Asia / Pacific publicly traded real estate related companies. HRES, HIRES and HIRES PTY (collectively, “Heitman”) are limited liability companies whose sole
                          LLC.                                                     Inc.
     member is Heitman LLC The members of Heitman LLC are Old Mutual (HFL) Inc (wholly owned by Old Mutual plc) and a group of key Heitman and Heitman LLC employees   employees.
2.   This composite includes all discretionary, global diversified strategy clients benchmarked to the FTSE EPRA/NAREIT Developed Index.
3.   This report has been prepared and presented in compliance with the Global Investment Standards (GIPS®). Heitman has been verified by an independent “Big 4” accounting
     firm through December 31, 2009. A copy of their report is available upon request.
4.   Trade date settlement valuation is used and dividends are recorded on “ex-date” for this composite. This composite is denominated in U.S. dollars.
5.   The FTSE EPRA/NAREIT Developed Index is a market cap weighted index of publicly traded Global REIT and REIT like securities. The Wilshire U.S. Real Estate Securities
     Index (“Wilshire U.S. RESI”) is a market capitalization weighted index of p
            (                     )               p              g             publicly traded real estate securities including REITs and REOCs. Beginning in January, 2005 the
                                                                                      y                                       g                      g     g           y,
     Wilshire U.S. RESI is presented in the “float adjusted” version. Prior to January, 2005 the Wilshire U.S. RESI was presented in the “full cap” version. The Dow Jones
     Industrial Average is the measure of the performance of 30 “blue-chip” stocks, considered the leaders of the market. The Merrill Lynch Government/Corporate Bond Index is
     an index composed of U.S. treasuries, agencies and corporates with maturities from 1 to 4.99 years. Corporates are investment grade only (BBB or higher). The NCREIF
     (National Council of Real Estate Investment Fiduciaries) Index is the NCREIF Property Index (a market weighted index that measures the historical performance of income
     producing properties owned by commingled funds on behalf of qualified pension and profit-sharing trusts, or owned directly by these trusts and managed on a separate
     account basis) calculated to reflect the quarterly returns on a compounded basis. The NAREIT (National Association of Real Estate Investment Trusts) Index is a total return
     performance index of all equity REITs tracked by NAREIT. The Russell 2000 Index is comprised of the smallest 2000 companies in the Russell 3000 Index, representing
     approximately 11% of the Russell 3000 total market capitalization. The S&P 500 Index is an unmanaged index g
       pp          y                                           p                                             g          generally considered to be representative of the large cap
                                                                                                                                y                    p                      g    p
     segment of the market. The Indices are presented for illustrative purposes only and are not intended to imply Heitman’s past or future performance. The performance of the
     Indices assumes dividend reinvestment, but do not reflect withholding taxes, transaction costs, advisory fees, custodian fees, trading costs and other costs of investment.
     Individuals cannot directly invest in the indices described above.
6.   Accounts are included in this composite the first full month under management after being fully invested. Terminated accounts are included in this composite through
     completion of their last full month under management. This composite was created in November 2010. Returns for the period November 1, 2010 through December 31,
     2010 are not included in the composite since the account was not fully invested.
7.   Representative fee schedule is as follows: first $10 million – 0.75%; over $10 million to $25 million – 0.65%; over $25 million to $50 million – 0.60%; over $50 million to $75
     million – 0.55%; over $75 million to $100 million – 0.50%; over $100 million – 0.45%. Advisory fees are described in Part II of Form ADV (copy available upon request).
8.   Performance results presented gross and net of management fees. Gross of fees performance is presented before management fees, but after all relevant trading expenses
     and all applicable non reclaimable withholding taxes. Net of fees performance is presented after deducting management fees and all relevant trading expenses that may be
     incurred in the management of an account and all applicable non reclaimable withholding taxes. A complete list of Heitman’s composites and performance results is available
     upon request. Past performance is no guarantee of future results. Advisory fees are described in Part II of Form ADV (available upon request).




                                                                                                                                                                   42
Appendix:
Performance Notes                       Global Diversified Rental Strategy
                  Total Return Total Return         FTSE EPRA/NAREIT                                          Total Comp osite      Total Firm Assets
                    Net of Fees    Gross of Fees Developed Rental Index   Number of             Standard       Assets at End of      at End of Period Percentage of Firm
        Year         (percent)       (p ercent)          (percent)        Portfolios            Deviation     Period ($millions)        ($millions)        Assets
       2007*           -3.48            -3.26              -5.02         less than 5              N/A               38.5                  4,208             0.91
       2008           -43.02           -42.70             -44.60         less than 5              N/A               21.9                  2,071             1.06
       2009           33.55            34.27               34.40         less than 5              N/A               48.2                  5,582             0.86
       2010           22 65
                      22.65            23.40
                                       23 40               24.54
                                                           24 54         less than 5              N/A                 59                  2,789
                                                                                                                                          2 789             2.12
                                                                                                                                                            2 12
     *Returns are p resented for the period August 1, 2007 through December 31, 2007

1.   Heitman Real Estate Securities LLC (“HRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of North American publicly
     traded real estate related companies (REITs – real estate investment trusts and REOCs – real estate operating companies). Heitman International Real Estate Securities
     GmbH (“HIRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of European publicly traded real estate related
     companies. Heitman International Real Estate Securities Pty Limited (“HIRES PTY”) is an investment adviser specializing in the investment of equity, convertible and debt
     instruments of Asia / Pacific publicly traded real estate related companies. HRES, HIRES and HIRES PTY (collectively, “Heitman”) are limited liability companies whose sole
           b is Heitman LLC Th members of Heitman LLC are Old Mutual (HFL) Inc. (wholly owned by Old Mutual plc) and a group of key H it
     member i H it         LLC. The       b     f H it                  M t l         I   ( h ll      db     M t l l ) d g                               d Heitman LLC employees.
                                                                                                                                       f k Heitman and H it                  l
2.   This composite includes all discretionary, global diversified strategy clients benchmarked to the FTSE EPRA/NAREIT Developed Rental Index. For periods prior to September
     2010 HRES entered into a sub-advisory agreement with a non-affiliated third party to provide sub-advisory services for Asia/Pacific publicly traded REITs and REIT-like
     securities.
3.   This report has been prepared and presented in compliance with the Global Investment Standards (GIPS®). Heitman has been verified by an independent “Big 4” accounting
     firm through December 31, 2009. A copy of their report is available upon request.
4.   Trade date settlement valuation is used and dividends are recorded on “ex-date” for this composite. This composite is denominated in U.S. dollars.
5.   The FTSE EPRA/NAREIT Developed Rental Index is a market cap weighted index of publicly traded REITs and REOCS from around the world in companies classified by FTSE
     as “Rental” if the rental revenue from properties is greater than or equal to 70% of total revenue. The Wilshire U.S. Real Estate Securities Index (“Wilshire U.S. RESI”) is a
     market capitalization weighted index of publicly traded real estate securities including REITs and REOCs. Beginning in January, 2005 the Wilshire U.S. RESI is presented in
     the “float adjusted” version. Prior to January, 2005 the Wilshire U.S. RESI was presented in the “full cap” version. The Dow Jones Industrial Average is the measure of the
     performance of 30 “blue-chip” stocks, considered the leaders of the market. The Merrill Lynch Government/Corporate Bond Index is an index composed of U.S. treasuries,
     agencies and corporates with maturities from 1 to 4.99 years. Corporates are investment grade only (BBB or higher). The NCREIF (National Council of Real Estate Investment
     Fiduciaries) Index is the NCREIF Property Index (a market weighted index that measures the historical performance of income producing properties owned by commingled
     funds on behalf of qualified pension and profit-sharing trusts, or owned directly by these trusts and managed on a separate account basis) calculated to reflect the quarterly
     returns on a compounded basis. The NAREIT (National Association of Real Estate Investment Trusts) Index is a total return performance index of all equity REITs tracked by
     NAREIT. The Russell 2000 Index is comprised of the smallest 2000 companies in the Russell 3000 Index, representing approximately 11% of the Russell 3000 total market
     capitalization. The S&P 500 Index is an unmanaged index generally considered to be representative of the large cap segment of the market. The Indices are presented for
     illustrative purposes only and are not intended to imply Heitman’s past or future performance. The performance of the Indices assumes dividend reinvestment, but do not
     reflect transaction costs, advisory fees, custodian fees, trading costs and other costs of investment. Individuals cannot directly invest in the indices described above.
6.   Accounts are included in this composite the first full month under management. Terminated accounts are included in this composite through completion of their last full month
     under management. This composite was created in August, 2007. Returns for the period July 2, 2007 through July 31, 2007 are not included in the composite since the
     period was less than one month.
7.   Representative fee schedule is as follows: first $ million – 0.75%; over $ million to $25 million – 0.65%; over $ million to $50 million – 0.60%; over $ million to $75
         p                                             $10                  ;      $10           $                 ;     $25             $                   ;      $50           $
     million – 0.55%; over $75 million to $100 million – 0.50%; over $100 million – 0.45%. Advisory fees are described in Part II of Form ADV (copy available upon request).
8.   Performance results presented gross and net of management fees. Gross of fees performance is presented before management fees, but after all relevant trading expenses
     and all applicable non reclaimable withholding taxes. Net of fees performance is presented after deducting management fees and all relevant trading expenses that may be
     incurred in the management of an account and all applicable non reclaimable withholding taxes. A complete list of Heitman’s composites and performance results is available
     upon request. Past performance is no guarantee of future results. Advisory fees are described in Part II of Form ADV (available upon request).                   43
Appendix:
Performance Notes                     Global Focused Strategy
                             Total Return Total Return            FTSE EPRA/NAREIT                                       Total Comp osite       Total Firm Assets
                               Net of Fees    Gross of Fees Develop ed Rental Index     Number of          Standard       Assets at End of       at End of Period
                   Year         (p ercent)      (percent)             (p ercent)        Portfolios         Deviation     Period ($millions)         ($millions)
                  2007*          -17.23           -16.88                -17.93         less than 5           N/A                3.3                   4,208
                   2008          -42.44           -42.15                -44.60         less than 5           N/A                2.0                   2,071
                   2009           35.98            36.66                34.40          less than 5           N/A                2.6                   5,582
                   2010            22.1            22.77                24.54          less than 5           N/A                3.2                   2,789
                *Returns are p resented for the p eriod April 1, 2007 through December 31, 2007
 1.   Heitman Real Estate Securities LLC (“HRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of North American
      publicly traded real estate related companies (REITs – real estate investment trusts and REOCs – real estate operating companies). Heitman International Real Estate
      Securities GmbH (“HIRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of European publicly traded real estate
      related companies. HRES and HIRES (collectively, “Heitman”) are limited liability companies whose sole member is Heitman LLC. The members of Heitman LLC are Old
      Mutual (HFL) Inc. (wholly owned by Old Mutual plc) and a group of key Heitman and Heitman LLC employees.
 2.   This composite includes all discretionary, global focused strategy clients benchmarked to the FTSE EPRA/NAREIT Developed Rental Index. HRES entered into a
         b d i                   ih         ffili d hi d              id    b d i
      sub-advisory agreement with a non-affiliated third party to provide sub-advisory services with respect to Asia/Pacific publicly traded REIT and REIT lik securities.
                                                                                           i       ih           A i /P ifi     bli l     d d REITs d REIT-like      ii
 3.   This report has been prepared and presented in compliance with the Global Investment Standards (GIPS®). Heitman has been verified by an independent “Big 4”
      accounting firm through December 31, 2008. A copy of their report is available upon request.
 4.   Trade date settlement valuation is used and dividends are recorded on “ex-date” for this composite. This composite is denominated in U.S. dollars.
 5.   The FTSE EPRA/NAREIT Developed Rental Index is a market cap weighted index of publicly traded REITs and REOCS from around the world in companies classified by
      FTSE as “Rental” if the rental revenue from properties is greater than or equal to 70% of total revenue. The Wilshire U.S. Real Estate Securities Index (“Wilshire U.S.
      RESI”) is a market capitalization weighted index of publicly traded real estate securities including REITs and REOCs. Beginning in January, 2005 the Wilshire U.S. RESI
      is presented in the “float adjusted” version. Prior to January, 2005 the Wilshire U.S. RESI was presented in the “full cap” version. The Dow Jones Industrial Average is
      the measure of the performance of 30 “blue-chip” stocks, considered the leaders of the market. The Merrill Lynch Government/Corporate Bond Index is an index
      composed of U.S. treasuries, agencies and corporates with maturities from 1 to 4.99 years. Corporates are investment grade only (BBB or higher). The NCREIF
      (National Council of Real Estate Investment Fiduciaries) Index is the NCREIF Property Index (a market weighted index that measures the historical performance of
      income producing properties owned by commingled funds on behalf of qualified pension and profit-sharing trusts, or owned directly by these trusts and managed on a
      separate account basis) calculated to reflect the quarterly returns on a compounded basis. The NAREIT (National Association of Real Estate Investment Trusts) Index is
      a total return performance index of all equity REITs tracked by NAREIT. The Russell 2000 Index is comprised of the smallest 2000 companies in the Russell 3000
      Index, representing approximately 11% of the Russell 3000 total market capitalization. The S&P 500 Index is an unmanaged index generally considered to be
      representative of the large cap segment of the market. The Indices are presented for illustrative purposes only and are not intended to imply Heitman’s past or future
      performance. The performance of the Indices assumes dividend reinvestment, but do not reflect transaction costs, advisory fees, custodian fees, trading costs and
      other costs of investment. Individuals cannot directly invest in the indices described above.
 6.   Accounts are included in this composite the first full month under management. Terminated accounts are included in this composite through completion of their last full
      month under management. This composite was created in April, 2007. Returns for the period March 21, 2007 (inception date) through March 31, 2007 are not
      included in the composite since the period was for less than one month.
 7.   Representative fee schedule is as follows: first $10 million – 0.85%; over $10 million to $25 million – 0.75%; over $25 million to $50 million – 0.70%; over $50 million
      to $75 million – 0.65%; over $75 million to $100 million – 0.60%; over $100 million – 0.55%. Advisory fees are described in Part II of Form ADV (copy available upon
      request).
        q      )
 8.   Performance results presented gross and net of management fees. Gross of fees performance is presented before management fees, but after all relevant trading
      expenses and all applicable non reclaimable withholding taxes. Net of fees performance is presented after deducting management fees and all relevant trading
      expenses that may be incurred in the management of an account and all applicable non reclaimable withholding taxes. A complete list of Heitman’s composites and
      performance results is available upon request. Past performance is no guarantee of future results. Advisory fees are described in Part II of Form ADV (available upon
      request).                                                                                                                                                     44
Appendix:
Performance Notes                Attribution Analysis

 1. The results are gross of fees and calculated based on transactions. The results may vary from the actual returns due to rounding,
    intra-day trading and fees.
 2. Please note that the portfolio’s performance as represented in this file is preliminary and may vary from the official result.
 3. Attribution analyses are performed on a representative account in a strategy and not on the entire constituents of a strategy’s
    composite. Therefore, there may be a disparity between the returns calculated through the attribution analysis for a representative
    account and a composite.
 4. Certain issuers have granted rights offerings to its shareholders. Because of this, there is a disparity in the methodology and
                       stock s
    calculation of the stock’s price, and therefore the total return for the stocks, as presented by the benchmark and Heitman through its
    attribution service, FactSet. To minimize the disparity, Heitman has created a “Composite Asset” for each security in which there are
    current rights offerings. A “Composite Asset” rolls an issuer’s common stock with the rights offering to create a single security
    which more closely resembles how the benchmark is treating the issuer’s common stock and rights offering (i.e., as a single
    security). It is important to note that the pricing of a “Composite Asset” as calculated by Heitman and the benchmark’s pricing of
    the issuer’s common stock/rights offering (as a single security) does not reflect the actual stock price of the issuer in the
    marketplace.




                                                                                                                                     45
Appendix:
Performance Notes                Portfolio Position Footnotes

 SEE BELOW FOR BENCHMARK AND PORTFOLIO SLEEVE DESCRIPTIONS

  NA
       (1)   Heitman Global Diversified Developed Strategy Portfolio weighting
       (2)   FTSE EPRA/NAREIT Developed Index weighting
       (3)   US Subset of the Heitman Diversified FTSE EPRA/NAREIT Developed North American Strategy Composite
       (4)   US Subset of the FTSE EPRA/NAREIT Developed North American Index
       (5)   Canada Subset of the Heitman Diversified FTSE EPRA/NAREIT Developed North American Strategy Composite
       (6)   Canada Subset of the FTSE EPRA/NAREIT Developed North American Index



  EU
      (1)   Heitman Global Diversified Developed Strategy Portfolio weighting
      (2)   FTSE EPRA/NAREIT Developed Index weighting
      (3)   Continental Europe Subset of the Heitman Diversified FTSE EPRA/NAREIT Developed European Strategy Composite
      (4)   Continental Europe Subset of the FTSE EPRA/NAREIT Developed Europe Index
      (5)   UK Subset of the Heitman Diversified FTSE EPRA/NAREIT Developed European Strategy Composite
      (6)   UK Subset of the FTSE EPRA/NAREIT Developed Europe Index



 AP
       (1)   Heitman Global Diversified Developed Strategy Portfolio weighting
       (2)   FTSE EPRA/NAREIT Developed Index weighting
       (3)   Australia/New Zealand Subset of the Heitman Diversified FTSE EPRA/NAREIT Developed Asia-Pacific Strategy Composite
       (4)   Australia/New Zealand Subset of the FTSE EPRA/NAREIT Developed Asia Index
       (5)        Ex Japan                                                              Asia-Pacific
             Asia Ex-Japan Subset of the Heitman Diversified FTSE EPRA/NAREIT Developed Asia Pacific Strategy Composite
       (6)   Asia Ex-Japan Subset of the FTSE EPRA/NAREIT Developed Asia Index
       (7)   Japan Subset of the Heitman Diversified FTSE EPRA/NAREIT Developed Asia-Pacific Strategy Composite
       (8)   Japan Subset of the FTSE EPRA/NAREIT Developed Asia Index
                                                                                                                             46

				
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