Rainier citywire final_062012

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Rainier citywire final_062012

  1. 1. Rainier InvestmentManagement, Inc.Presented by:Mark H. Dawson, CFA, PrincipalSenior Portfolio ManagerKurt A. Polk, CFA, PrincipalChief Executive OfficerJune 2012
  2. 2. Table of ContentsSECTION 1 Firm OverviewSECTION 2 Team, Philosophy & ProcessSECTION 3 U.S. EquitySECTION 4 International EquitySECTION 5 Balanced and Fixed IncomeSECTION 6 BiographiesSECTION 7 U.S. Equity Appendix
  3. 3. Rainier Investment ManagementInternational Competitive Strengths: • Stewardship -Independently owned by senior professionals -Investment management is our only business • Growth Equity Specialist Firm Assets – $16.4 Billion -Over 20 years of investment management experience As of 3/31/2012 • Client Focus -Interests aligned with clientsP/1
  4. 4. Representative ClientsCorporate Financial Institutions/Subadvisory Non-U.S.ABX Air Inc. John Hancock Investment Management Services Hydro OneAmerican Sugar Refining Met Investors Advisory LLC NomuraAssociated Press 12 undisclosed Subadvisory clients 5 undisclosed Non-U.S. clientsCaterpillar Inc.Charles Schwab Foundations/Endowments PublicDHL Express Nashville Area United Methodist City of EdmontonDTE Energy Company Old Dominion Transit Employees Michigan State Employees Retirement SystemDun & Bradstreet Corporation University of Illinois Foundation Navajo NationEntergy Services University of Nebraska Foundation Portland School District #1Goodfellow Bros. Virginia Birth Related Neurological Program San Diego TransitHormel Foods Corporation 3 undisclosed Non-Profit clients Turlock Irrigation DistrictLehigh Hansen 7 undisclosed Public clientsLeupold & Stevens Health CareMcKesson Corporation Baptist Healthcare System Taft-HartleyNordstrom Catholic Health East Cement Masons & PlasterersNorfolk Southern Childrens University Medical Group Inland Empire Electrical WorkersOcean Spray Cranberries Legacy Health Inlandboatmens Union of the PacificRio Tinto America MultiCare Health System Northwest IronworkersSimpson Investment Company Retirement Plan for Hospital Employees Operating Engineers Inland Empire/IdahoTD Banknorth N.A. St. Joseph Health System Operating Engineers Locals 302/612The Home Depot Winthrop University Hospital Oregon Sheet Metal Workers21 undisclosed Corporate clients 7 undisclosed Health Care clients Pacific Coast Benefits Trust Plumbers & Pipefitters Local 525 UFCW International Pension Plan for Employees 64 undisclosed Taft-Hartley clients Clients were selected for this list based on the type of business and public familiarity only. The clients listed do not necessarily endorse Rainier Investment Management, Inc.® or the advisery services provided.P/2
  5. 5. Rainier Investment Management, Inc. RAINIER INVESTMENT MANAGEMENT, INC. Board of DirectorsCHIEF EXECUTIVE OFFICER PRESIDENT CHIEF INVESTMENT OFFICERKurt A. Polk, CFA, Principal James M. Ridgeway, Principal James R. Margard, CFA, Principal CONSULTANT U.S. EQUITY PORTFOLIO COMPLIANCE MANAGEMENT RELATIONS & TRADING FINANCIAL INFORMATION FIXED INCOME/HIGH INSTITUTIONS TECHNOLOGY YIELD PORTFOLIO GROUP MANAGEMENT INSTITUTIONAL INTERNATIONAL CLIENT LEGAL PORTFOLIO SERVICE MANAGEMENT MARKETING OPERATIONSP/3
  6. 6. Rainier Investment Management, Inc. RAINIER INVESTMENT MANAGEMENT, INC.® Board of Directors CHIEF INVESTMENT OFFICER James R. Margard, CFA, Principal FIXED INCOME INTERNATIONAL EQUITY PORTFOLIO PORTFOLIO PORTFOLIO MANAGEMENT MANAGEMENT MANAGEMENT SENIOR EQUITY DIRECTOR OF FIXED PORTFOLIO MANAGER HEAD OF INTERNATIONAL INCOME MANAGEMENT TRADING SENIOR EQUITY INVESTMENTS Daniel Brewer, CFA, Principal PORTFOLIO MANAGERMatthew Kennedy, CFA, Principal Henrik Strabo, Principal Mark Broughton, CFA, Principal SENIOR EQUITY FIXED INCOME PORTFOLIO MANAGER DIRECTOR OF PORTFOLIO MANAGER EQUITY TRADING SENIOR INTERNATIONAL Stacie Cowell, CFA, Principal RESEARCH ANALYST James Hentges, CFA SENIOR EQUITY Justin Kane, Principal PORTFOLIO MANAGER Greg S. Ise, CFA SENIOR EQUITY PORTFOLIO MANAGER Mark Dawson, CFA, Principal EQUITY TRADER INTERNATIONAL Andrea Durbin, CFA, Principal RESEARCH ANALYST SENIOR EQUITY Tyler Platte, Principal PORTFOLIO MANAGER Derrick Tzau SENIOR EQUITY PORTFOLIO MANAGER Peter Musser, CFA, Principal Michael Emery, CFA, Principal P/4
  7. 7. Specializing in U.S. Growth Stocks All Cap Large Cap Large Cap Growth Large Mid Cap Medium/Large Small/Mid Cap Medium Medium/Small Small Construction Russell 3000 S&P 500 Russell 1000 Russell Midcap Russell 2500 Benchmark Growth Performance Russell 3000 or S&P 500, Russell Russell 1000 Russell Midcap Russell 2500 Benchmark Growth 1000 or Growth Growth or Growth or Growth Represents the approximate investable universe. Current holdings may fall slightly outside stated capitalizations.P/5
  8. 8. U.S. Equity Management TeamCompetitive Strengths:• Individual specialization; shared philosophy and process• Exclusive focus on client portfolios• Team continuity Years Year Joined Professionals Sector Emphasis Experience Rainier James R. Margard, CFA 32 1985 Energy, Financial Services, Industrials, Utilities – Electric/Gas Peter M. Musser, CFA 34 1994 Industrials, Materials, Energy, Technology Mark H. Dawson, CFA 27 1996 Financial Services, Health Care, Consumer Daniel M. Brewer, CFA 25 2000 Consumer, Telecom Services Mark W. Broughton, CFA 26 2002 Technology, Health Care Andrea L. Durbin, CFA 20 2002 Financial Services, Utilities – Electric/Gas, Consumer Stacie L. Cowell, CFA 23 2006 Technology, Consumer, Health Care Michael D. Emery, CFA 16 2008 Health Care, Technology, Telecom ServicesP/6
  9. 9. U.S. Equity PhilosophyWe invest in growthcompanies at prices thatmake sense. Earnings Growth Drives Stock Prices • Sound fundamental analysis is the foundation • Bottom up stock selection by sector specialists Growth Potential Always Evaluated within the Context of Price • Disciplined analysis of when to buy and sell We Believe Growth Opportunities Exist in all Sectors • Broad diversification across all sectors of the market • Find opportunities in neglected sectorsP/7
  10. 10. U.S. Equity Process (1) Identify (2) Analyze (3) Select (4) Monitor Narrowing of a broad pool of In-depth fundamental research of Team presentation Continuous assessment of stocks most attractive candidates price target and company prospects • Superior growth • Scrutiny of company financials • Rationale for inclusion in • Sell discipline • Attractive relative valuation • Comparative analysis vs. Peers portfolio • Price target achieved • Positive catalysts • Competitive strengths • Portfolio weight and price • Better alternative target determined • Fundamental deteriorationP/8
  11. 11. Holdings Characteristics All Cap Equity • # of stocks owned: 135 • Generally limit investment in any single security: 5% • Fully invested at all times % of Russell Ten Largest Holdings % of Portfolio 3000 Apple Inc. Technology 4.7 3.5 Computer Technology Chevron Corp. Energy 3.2 1.4 Oil: Integrated J.P. Morgan Chase & Co. Financial Services 2.4 1.2 Diversified Financial Services Precision Castparts Corp. Materials & Processing 2.0 0.2 Metal Fabricating Kraft Foods Inc. Consumer Staples 1.9 0.4 Foods Qualcomm Inc. Technology 1.7 0.7 Communications Technology Costco Wholesale Corp. Consumer Discretionary 1.6 0.3 Diversified Retail The Coca-Cola Corp. Consumer Staples 1.6 0.9 Beverage: Soft Drinks Google Inc. Technology 1.5 1.0 Computer Services, Software & Systems EMC Corp. Technology 1.5 0.4 Computer Technology Portfolio holdings are subject to change at any time and are not a recommendation to buy/sell a security. This supplemental information complements the All Cap Equity presentation. Source: BNY Mellon Performance & Risk Analytics, LLC and Rainier All Cap Equity representative portfolio. As of 3/31/2012P/9
  12. 12. Market Capitalization All Cap Equity 50% 40% % of 30% Portfolio 20% 10% 0% Large Med/Large Medium Med/Small Small 57.58 B+ 16.43-57.58 B 5.55-16.43 B 2.13-5.55 B <2.13 B Rainier All Cap Russell 3000 Russell 3000 RAINIER Russell 3000 Growth Weighted Average Market Cap $71.8 B $93.2 B $111.6 B Weighted Median Market Cap $23.7 B $36.0 B $37.2 B Market Cap Range: Largest $554.4 B $554.4 B $554.4 B Smallest 0.605 B 0.027 B 0.027 B This supplemental information complements the All Cap Equity presentation. Source: BNY Mellon Performance & Risk Analytics, LLC and Rainier All Cap Equity representative account. As of 3/31/2012P/10
  13. 13. Sector Representation All Cap Equity •Limit of +/- 5% versus benchmark in any one sector •General limit of 5% in any one security 25% Rainier vs. Russell 3000® Index 20% 15% 10% 5% 0% Tech Health Care Cons. Cons. Energy Mat. & Producer Financial Utilities Disc. Staples Process Durables Rainier Russell 3000 Sector allocations are subject to change at any time. This supplemental information complements the All Cap Equity presentation. Source: BNY Mellon Performance & Risk Analytics, LLC and Rainier All Cap Equity representative account. As of 3/31/2012P/11
  14. 14. Growth & Valuation Characteristics All Cap Equity 1 Year Estimated EPS Growth Rate Price to Estimated Earnings Ratio 18.1% 15.5x RAINIER RAINIERRussell 3000® Index 10.2% Russell 3000® Index 13.7x Russell 3000 Russell 3000 Growth® Index 13.8% Growth® Index 15.3x 0% 5% 10% 15% 20% 25% 30% 0 5 10 15 20 P/E Ratio / Estimated EPS Growth Rate (1 Year PEG Ratio) RAINIER 0.86x Russell 3000® Index 1.34x Russell 3000 1.11x Growth® Index 0 0.5 1 1.5 This supplemental information complements the All Cap Equity presentation. Sources: BNY Mellon Performance & Risk Analytics, LLC and Rainier All Cap Equity representative account. Forward One Year EPS Forecast and Portfolio P/E based on I/B/E/S Medians.P/12 As of 3/31/2012
  15. 15. Annualized Total ReturnsAll Cap EquityComposite Returns - Gross of Fee (%)As of 3/31/2012 24.26 21.87 15.16 12.87 7.18 6.06 5.57 5.19 4.65 4.67 2.09 2.18 QUARTER 1 YEAR 3 YEARS* 5 YEARS* 10 YEARS* INCEPTION* Rainier Russell 3000 Rainier 15.16 -3.08 18.26 26.77 -41.74 17.70 14.64 13.80 12.61 33.02 -23.58 Russell 3000 12.87 1.03 16.93 28.34 -37.31 5.14 15.72 6.12 11.95 31.06 -21.54 YTD 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 *Returns for periods longer than one year are annualized. Inception date 10/15/01. Past performance is not indicative of future results. Please see GIPS Composite disclosures at the end of this presentation. A list of all firm composites, including annual returns, size and number of accounts, is available upon request.P/13
  16. 16. Excess Returns All Cap Equity Rainier All Cap Excess Returns vs. Russell 3000 Rolling Time Periods ending 3/31/12 5 Year 3 Year Positive Excess Performance Periods / Total Periods 20 / 22 20 / 30 Percentage of time with positive excess returns 91% 67% Returns based on Gross of Fee composite returns. Source: eVestment Analytics. Rolling time periods are calculated for 3, 5, or 10 year windows beginning at the inception of the strategy and moving forward quarterly. “Total Periods” refers to the number of rolling windows since inception, and “Positive Excess Performance Periods” refers to the number of periods during which the strategy returned results in excess of the appropriate benchmark. *Inception date 10/15/2001. Quarterly data beginning 1/1/2002.P/14
  17. 17. Why U.S. Equity with Rainier Experienced • Portfolio Managers average over 24 years experience with each manager having at least 16 years experience Consistent & Stable • Same philosophy and process since inception • Low Portfolio Manager turnover since inception • Identical application across accounts Client Focused • Independent ownership • Interests aligned with clients • Accessible and responsive Results • Long standing track record Past performance is not indicative of future results.P/15
  18. 18. International Equity Team HEAD OF INTERNATIONAL INVESTMENTS Henrik Strabo, Principal 27 years of industry experience Senior International International Research Analyst Research Analyst Greg Ise, CFA Derrick Tzau 11 years of 4 years of industry experience industry experience Trading Justin Kane 18 years of industry experience Tyler Platte 16 years of industry experienceP/16
  19. 19. International Small Cap Equity Philosophy We invest in dynamic non-U.S. growth companies with significant appreciation potential. • Earnings Growth Drives Stock Prices • Growth Potential Always Evaluated within the Context of Price • We Believe Excellent Growth Opportunities Exist Across Sectors and Regions GloballyP/17
  20. 20. International Small Cap Equity Process(1) Idea Generation (2) Research & Analysis (3) Security Selection (4) Portfolio MonitoringIdentify companies In-depth fundamental Construct a conviction Monitor the portfolio todemonstrating positive research of candidates that weighted portfolio. ensure each position can befundamental change. we believe have great long- continuously justified as a term growth characteristics. best opportunity.• Superior growth • Financial health • 80-120 stocks • Meet frequently, • Add• Clear key earnings drivers • Competitive position • Balance opportunity talk constantly • Trim• Attractive valuation • Priced for growth with risk • Formal weekly • Questions • Management • Focus on a company’s review of cash holdings • Alternatives • Corporate governance prospects regardless of sector or geography • Well-defined sell discipline P/18
  21. 21. Holdings Characteristics International Small Cap Equity – # of stocks owned: 89 – General investment limit in any single stock: 5% % of Ten Largest Holdings Portfolio Wirecard AG 2.4 Aberdeen Asset Management PLC 2.0 Techtronic Industries Co. Ltd. 2.0 Gemalto N.V. 1.8 Elekta AB 1.8 Dollarama Inc. 1.7 Net One Systems Co. Ltd. 1.7 Market Vectors Brazil Small Cap ETF 1.7 Eurofins Scientific SE 1.6 PARK24 Co. Ltd. 1.6 Portfolio holdings are subject to change at any time and are not a recommendation to buy/sell a security. This supplemental information complements the International Equity presentation. Top 10 holdings exclude cash. Source: Factset As of 3/31/2012P/19
  22. 22. Sector Representation International Small Cap Equity 25% Rainier vs. MSCI ACWI ex US Small Cap (% of Portfolio) 20% 15% 10% 5% 0% Cons. Cons. Energy Financials Health Industrials Info. Materials Telecom Utilities Disc. Staples Care Tech. Svcs Rainier MSCI ACWI ex US Small Cap Sector allocations are subject to change at any time. This supplemental information complements the International Small Cap Equity presentation. Source: Factset As of 3/31/2012P/20
  23. 23. Regional Weightings International Small Cap Equity 40% Rainier vs MSCI ACWI ex US Small Cap (% of Portfolio) 35% % in Developed Markets: 73.2% % in Emerging Markets: 26.8% 30% 25% 20% 15% 10% 5% 0% Africa/ Europe UK Asia/Pacific Japan Americas Other Middle East (ex. UK) Basin (ex. Japan) Rainier MSCI ACWI ex US Small Cap Regional allocations are subject to change at any time. “Americas” includes Canada and North, Central and South Americas. This supplemental information complements the International Equity presentation. Source: Factset As of 3/31/2012P/21
  24. 24. Why International Small Cap with Rainier Opportunity • Asset class full of potential Perspective • Philosophy and process honed over 27 years by an experienced industry veteran • Nimble investment team Stewardship • Client-focused, employee-owned firm • Investment management is our only businessP/22
  25. 25. U.S. Fixed Income TeamCompetitive Strengths:• Consistent philosophy and process• Exclusive focus on client portfolios• Physically located with equity Portfolio Managers and Traders to maximize exchange of information• Macro economic analysis focused on factors impacting client portfolios• Combined roles allow for opportunistic and efficient implementation of investment ideas Fixed Income Years Management Responsibility Specialization Professionals Experience Corporate Bonds (Investment Grade, High Yield and Private Placements), MBS, ABS, Agencies and Matthew R. Kennedy, Treasuries 18 Director, Fixed Income CFA, Principal Cash equivalents to 30-year Corporate Bonds (Investment Grade, High Yield), Credit Derivatives, Structured Credit, Agencies Portfolio Manager and and Treasuries James H. Hentges, CFA 16 Analyst Cash equivalents to 30-yearP/23
  26. 26. Rainier High Yield PhilosophyConservative selection of high-quality, high yield bonds,based on fundamental credit analysis. •Conservative high-quality focus, high-yield strategy - Concentrate on strong BB and B rated issuers - Strategic full-market-cycle philosophy •Intensive fundamental credit analysis -Identify issuers with: - Improving trends - Strong liquidity and cash-flow - Access to capital •Maximize long-term risk adjusted returns through: -Compounding income -Capital preservation -Diversification -LiquidityP/24
  27. 27. High Yield Process Overview Monitoring & Risk Control Idea Generation 2000+ securities that comprise the High Yield market -Utilize multiple sources to uncover investment opportunities Research & Analysis 150 securities closely followed -In depth fundamental credit analysis identifies issuers with attractive valuations Portfolio Construction & Execution Monitoring & Risk Control 50-70 best ideas Ensure portfolio is positioned to maximize risk adjusted returnsP/25
  28. 28. High Yield Portfolio Construction • Presentation of investment analysis and recommendations to the high- yield team for inclusion • Construct a diversified portfolio of 50 to 70 issuers – Appropriate issuer weightings with a maximum 5% – Emphasize BB & B rated issuers – Maximum 10% CCC rated issuers • Efficient execution – Access to Wall Street inventories – Full suite of trading platforms o Negotiated o MarketAxess, Bloomberg Data as of 3/31/12 Source: Rainier Investment Management Unrated consists of mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac which are not rated by a nationally recognized statistical rating organization. Three rating agencies are used: Moody’s, S&P and Fitch. Typically there are three ratings on every bond. If the three ratings are not identical, Rainier will use the following procedures: 1) If one of the three ratings is different, we will use the dominant rating (the rating that is the same from two rating agencies), 2) If all ratings are different, we will use the middle rating, and 3) If there are only two ratings, we will use the higher rating.P/26 Diversification does not assure a profit or protect against a loss in a declining market.
  29. 29. Annualized Total ReturnsHigh Yield RAINIER 4.72 6.78 13.96Composite Returns - Gross of Fee (%) BofA Merrill Lynch U.S. High Yield Master II 5.15 4.38 15.19As of 3/31/2012 BofA Merrill Lynch U.S. High Yield BB-B Rated 4.42 5.43 14.50 YTD 2011 2010 23.77 23.77 20.08 20.08 16.65 16.65 8.47 5.63 6.22 4.72 5.15 4.42 QUARTER 1 YEAR 3 YEARS* INCEPTION* Rainier BofA Merrill Lynch U.S. High Yield Master II BofA Merrill Lynch U.S. High Yield BB-B Rated *Total returns for periods longer than one year are annualized. Inception date 04/01/2009*. Past performance is not indicative of future results. Please see GIPS Composite disclosures at the end of this presentation. A list of all firm composites, including annual returns, size and number of accounts, is available upon request.P/27
  30. 30. Your Team Portfolio Business Administration Client Service & Sales Management & Support 8 Senior U.S. Equity Portfolio Managers 1 International Equity Portfolio Manager 48 Professionals in 11 Professionals serving both Operations and Support of Mutual Fund and Separate 2 International Equity Portfolio Management Account Clients Analysts and Client Service 2 Fixed Income Portfolio Managers 2 Equity TradersYOUR CONTACTSMark H. Dawson, CFA, PrincipalMark Dawson serves as a Senior Portfolio Manager and Equity Research Analyst. He began his investment career in 1985 with Brown BrothersHarriman & Co. (New York), managing equity and balanced portfolios for foreign clients. In 1991 he joined Badgley, Phelps and Bell in Seattle,where he served as a portfolio manager and director of research.Mark holds the Chartered Financial Analyst designation. He received a Bachelor of Arts degree in History from the University of Washington and aMaster of Arts in International Relations from The Fletcher School at Tufts University. He is a member of the CFA Institute.Kurt A. Polk, CFA, Principal & Chief Executive OfficerKurt Polk, Rainier’s Chief Executive Officer, leads our business strategy efforts which includes client service, marketing and strategic initiatives.Kurt is a member of the Board of Directors and most recently served as Global Head of Distribution. Kurt joined Rainier in 2002 as Director of theinstitutional client service and consultant relations team and prior that worked in a similar capacity with another Seattle-based investmentmanager.Kurt holds a BA in Economics and Business from the Virginia Military Institute and an MBA-Finance from St. Mary’s University in Texas. Kurt holdsthe Chartered Financial Analyst designation and is a member of the New York Society of Financial Analysts. Kurt serves as a memberof the investment board for the VMI Foundation and is a Trustee of the George C. Marshall Foundation. P/28
  31. 31. BiographiesBrian M. Bader, PrincipalHead of Financial Institutions GroupBrian Bader is responsible for sales, marketing and client service for Rainier’s financial institutions businesses, including the subadvisory,retirement and financial adviser channels. Brian has 26 years of experience in the investment management industry. Prior to joining Rainier, heheld similar positions with U.S. Trust and Deutsche Asset Management.Brian holds a Bachelor of Science in Economics from the State University of New York at Albany. He is an active speaker at industryconferences.Mark LeeDirector of Subadvisory ServicesMark Lee is Director of Sub-advisory Services and works out of Rainier’s New York office. Mark gained 13 years of experience selling andpromoting a diverse range of domestic, international and global equity and fixed income strategies at Lord Abbett, where he worked asDirector of Sub-Advisory Sales & Marketing. Prior to joining Rainier, Mark was a Relationship Manager for Matthews International CapitalManagement, managing and expanding key retail and institutional business relationships. He has over 16 years of experience marketing to andservicing multiple audiences, such as broker/dealers, retirement platforms and other financial institutions.Mark earned an A.B. in History with a concentration in International Relations from Cornell University.P/29
  32. 32. U.S. Equity Portfolio Management TeamDaniel M. Brewer, CFA, PrincipalDaniel Brewer is a Senior Portfolio Manager and Equity Research Analyst. He began his career in 1987 as a financial analyst and securitiestrader for WCM Investment Management in Orange County, CA. Beginning in 1992, Daniel served as a portfolio manager and equity analyst atWells Fargo Asset Management. Prior to joining Rainier in 2000, Daniel was a portfolio manager and equity analyst at Laird Norton Trust Co. inSeattle.Daniel holds the Chartered Financial Analyst designation and earned a Bachelor of Arts in Finance from California State University, Fullerton,with graduate studies at the University of Washington School of Business. Daniel has served as a financial commentator on the radio, appearedon Bloomberg TV and in The Wall Street Transcript, and written numerous investment newsletters. He is a member of the CFA Institute, theSeattle Society of Financial Analysts, and is a past vice president and board member of the Orange County Society of Investment Managers.Mark W. Broughton, CFA, PrincipalMark Broughton is a Senior Portfolio Manager and Equity Research Analyst. He began his investment career in 1986, working in corporatefinance at Drexel, Burnham & Lambert in Boston and Los Angeles. In 1991, Mark joined Provident Investment Counsel in Pasadena, where heserved as an equity analyst and associate portfolio manager. Beginning in 1996, Mark was principal, senior portfolio manager and director ofresearch at Badgley, Phelps and Bell in Seattle. Prior to joining Rainier in 2002, Mark was lead portfolio manager of Blackrock FinancialManagement’s core equity product in Philadelphia.Mark holds the Chartered Financial Analyst designation. He received a Bachelor of Science degree in Finance and Entrepreneurship and aMaster of Business Administration in Finance and International Finance and Economics from the University of Southern California. He is amember of the CFA Institute and the Seattle Society of Financial Analysts.Stacie L. Cowell, CFA, PrincipalStacie Cowell is a member of the equity management team, serving as a Senior Portfolio Manager and Research Analyst. She began her careeras an analyst for Chase Manhattan Bank, New York, NY. Beginning in 1994, Stacie was a senior analyst on the small/mid cap team for FoundersAsset Management in Denver, CO. Prior to joining Rainier in 2006, Stacie was senior vice president and lead portfolio manager with InvescoFunds Group, Denver, CO.Stacie holds the Chartered Financial Analyst designation. She received her Master of Science, Finance from University of Colorado, Boulder,CO, in 1999 and graduated cum laude with a Bachelor of Science, Economics from Colgate University, Hamilton, NY.P/30
  33. 33. U.S. Equity Portfolio Management TeamAndrea L. Durbin, CFA, PrincipalAndrea L. Durbin is a Senior Equity Portfolio Manager and Equity Research Analyst. She began her investment career in 1992 with Dain Rauscherin Minneapolis. During her tenure there her experience included research, marketing, investment strategy and trading for various fixed-incomeproducts. Prior to joining Rainier in 2002, Andrea was a principal at Badgley, Phelps and Bell in Seattle where she served as Director of FixedIncome overseeing the management and trading of fixed-income and balanced portfolios. In her capacity as Senior Equity Portfolio Manager,Andrea brings a deep background in credit and risk analysis to our equity team, specializing in the financial services sector.Andrea holds the Chartered Financial Analyst designation. She received her Bachelor of Science degree in economics, with emphasis in bothfinance and statistics from the University of Minnesota. She is a member of the CFA Institute and the Seattle Society of Financial Analysts.Michael D. Emery, CFA, PrincipalMichael Emery is a member of the Rainier equity team serving as a Senior Equity Portfolio Manager and Analyst. He began his investment careerin 1995 with Roger Engemann & Associates and later in 2001 for Franklin Templeton Investments, Inc. During the early years of his career, Mike’sexperience included research and statistical analysis. Prior to joining Rainier in 2008, Mike was the Vice President / Small Cap Equity portfoliomanager at Provident Investment Counsel.Mike holds the Chartered Financial Analyst designation. He received his Bachelor of Arts degree in business administration from the University ofWashington and a Master of Business Administration from Cornell University. He is a member of the CFA Institute.P/31
  34. 34. U.S. Equity Portfolio Management TeamJames R. Margard, CFA, PrincipalJames Margard is Rainier Investment Management’s Chief Investment Officer and Director of Equity Management. Prior to joining Rainier in1985, he served as senior analyst and portfolio manager at Value Line, Inc. (New York), specializing in small-capitalization stocks.His impressive track record and stock recommendations have been highlighted in numerous financial publications.Jim holds the Chartered Financial Analyst designation. He received a Master of Business Administration in Finance from the University of NewMexico and a Master of Arts from New York University. He is a member of the CFA Institute.Peter M. Musser, CFA, PrincipalPeter Musser is a key member of the equity management team serving as a Senior Equity Portfolio Manager and Equity Research Analyst. Peterbegan his investment management career in 1978 and joined Rainier in 1994. Previously, he was a general partner and senior vice president atCable, Howse & Ragen. His market analysis and insights have been featured by Dow Jones, Pensions & Investments, The Wall Street Transcript,Investor’s Business Daily, Smart Money and The New York Times.Peter holds the Chartered Financial Analyst designation and received a Bachelor of Arts in Economics from Lawrence University in Wisconsin. Heis a member and past president of the Seattle Society of Financial Analysts and a member of the CFA Institute.P/32
  35. 35. International Portfolio ManagementHenrik Strabo, PrincipalHead of International InvestmentsHenrik Strabo is Rainier Investment Management’s Head of International Investments. In this position, Henrik is responsible for building andmanaging Rainier’s international small cap capabilities. Prior to joining Rainier in 2011, Henrik was Managing Director of Global EmergingMarkets for Rogge Capital. His more than 20 years of previous experience also includes International Chief Investment Officer positions atAmerican Century Investments and Clay Finlay. While at American Century, Henrik’s responsibilities included portfolio management duties fortheir Discovery Fund and International Growth Fund.Henrik earned a Bachelor of Arts in Business Administration from the University of Washington.Greg S. Ise, CFASenior International Research AnalystGreg Ise is a Senior International Research Analyst. He started his career working as an analyst for UBS Investment bank in New York. Greg laterserved as the Senior Financial Analyst at Weber Shandwick Worldwide and as a research analyst at Osmium Partners LLC, a San Francisco-basedhedge fund. Prior to joining Rainier, Greg served as the Vice President – Global Consumer Analyst for the Global Select and International SmallCap Growth funds at Allianz Global Investors in San Diego, CA.Greg holds the Chartered Financial Analyst designation. He has a Master of Business Administration from the University of California at Berkeleyand a Bachelor of Science from the University of Kansas.Derrick TzauInternational Research AnalystDerrick Tzau is an International Research Analyst at Rainier. He started his career in the industry working as corporate financial analyst for GroupHealth Credit Union. Prior to joining Rainier, Derrick was an equity research associate and assistant portfolio manager for Wentworth, Hauser &Violich, responsible for quantitative screening and equity research in their Global Emerging Market, Small Cap and Micro Cap strategies.Derrick has successfully passed all levels of CFA program. He has a Master of Science in Finance from Seattle University and a Bachelor of Sciencefrom the University of British Columbia.P/33
  36. 36. U.S. Fixed Income Portfolio Management TeamJames H. Hentges, CFAAs of 2009, James is a member of Rainier fixed-income management team and serves as a Portfolio Manager and Analyst. He began his career in1990 with GE Financial Assurance as an accountant, shifting to investments in 1997. Prior to leaving GE Financial Assurance, he served as a SeniorAnalyst for high-yield securities in oil service, homebuilding and supermarket industries. From the year 2000, James worked with AIG Investmentsas a Portfolio Manager and then assumed the Managing Directors position for their collateralized debt obligations portfolios backed byinvestment grade corporate credits.James holds the Chartered Financial Analyst designation. He received his Bachelor of Business degree in Business Administration with aconcentration in Finance, from University of Texas, Arlington.Matthew R. Kennedy, CFA, PrincipalMatthew Kennedy is the Director of Rainier Investment Management Inc.’s fixed-income management team, and serves as a portfolio managerand analyst. He began his investment career in 1995 with GE Financial Assurance in Seattle. During his years at GE Financial Assurance, he servedas a senior analyst and made investment recommendations for Investment Grade, High Yield and Private Placement Portfolios. From 1991 through1994, Matthew was a CPA and auditor with Deloitte & Touche in Seattle.Matthew holds the Chartered Financial Analyst designation. He received his Bachelor of Arts degree in Business Administration, withspecializations in Finance and Accounting, from Washington State University. He is a member of the CFA Institute and the Seattle Society ofFinancial Analysts.P/34
  37. 37. U.S. Equity Portfolio Construction Attribute Equity Strategies Large Cap Growth Equity 5 Year Average All Cap Equity: 129 Large Cap Growth Equity: 73 as of 3/31/12 Large Cap Equity: 91 Mid Cap Equity 112 Small/Mid Cap Equity: 128 Range of Number of All Cap Equity: 100-175 Large Cap Growth Equity: 40-80 Stocks Large Cap Equity: 75-150 Mid Cap Equity: 75-150 Small/Mid Cap Equity: 100-150 Position Limit 5% in any single security 7% in any single security Sector Deviation +/- 5% each sector of primary +/- 10% each sector of Russell 1000® benchmark Growth Maximum 35% in any sectorP/35
  38. 38. U.S. Equity Sector Weights Health Cons. Cons. Mat. & Producer Tech Care Disc. Staples Energy Process Durables Financial UtilitiesAll Cap Equity 19.8% 11.8% 15.3% 6.6% 9.7% 7.6% 10.4% 16.7% 2.1%Russell 3000 17.5% 11.3% 13.6% 8.2% 10.4% 4.6% 11.4% 17.2% 5.8%Large Cap Growth Equity 27.1% 11.0% 20.5% 6.7% 7.0% 6.8% 10.7% 10.3% 0.0%Russell 1000 Growth 27.6% 10.1% 16.8% 10.0% 10.0% 5.9% 13.2% 5.9% 0.6%Large Cap Equity 19.8% 11.8% 15.6% 7.0% 9.9% 7.6% 10.6% 15.4% 2.3%Russell 1000 17.8% 11.2% 13.5% 8.7% 10.8% 4.4% 11.2% 16.6% 5.9%Mid Cap Equity 15.9% 10.6% 16.7% 4.6% 10.1% 7.1% 11.2% 18.2% 5.5%Russell Midcap 11.7% 9.1% 17.1% 6.1% 7.4% 7.4% 12.9% 21.1% 7.3%Small/Mid Cap Equity 16.1% 10.6% 18.2% 2.4% 7.9% 7.9% 12.3% 19.4% 5.1%Russell 2500 13.0% 10.3% 15.2% 3.2% 5.7% 8.2% 15.1% 23.3% 6.0% Sector allocations are subject to change at any time. Source: BNY Mellon Performance & Risk Analytics, LLC As of 3/31/2012P/36
  39. 39. U.S. Equity Characteristics P/E Ratio 1 Year EPS 1 Year EPS P/E Ratio (PEG)All Cap Equity 18.1 15.5 0.9Russell 3000 10.2 13.7 1.3Russell 3000 Growth 13.8 15.3 1.1Large Cap Equity 17.5 15.5 0.9S&P 500 10.1 13.4 1.3Russell 1000 10.1 13.6 1.3Large Cap Growth Equity 21.0 18.1 0.9Russell 1000 Growth 13.8 15.2 1.1Mid Cap Equity 17.9 15.9 0.9Russell Midcap 9.3 15.3 1.6Russell Midcap Growth 11.7 17.3 1.5Small/Mid Cap Equity 18.3 15.3 0.8Russell 2500 12.1 15.4 1.3Russell 2500 Growth 14.3 17.2 1.2 Data based on I/B/E/S One Year Forecasted EPS Medians Source: BNY Mellon Performance & Risk Analytics, LLC Data as of: 3/31/12 EPS Growth is not a measure of future performance.P/37
  40. 40. U.S. Equity PerformanceComposite Returns - Gross of Fee (%)As of 3/31/2012 3 5 10 15 Since Inception Quarter 1 Year Years* Years* Years* Years* Inception* DateAll Cap Equity 15.16 4.65 21.87 2.09 5.57 — 6.06 10/15/01Russell 3000® Index 12.87 7.18 24.26 2.18 4.67 — 5.19Large Cap Equity 14.88 4.73 20.61 1.86 4.74 7.00 11.85 1/1/87S&P 500 Index 12.59 8.54 23.42 2.01 4.12 6.10 9.68Russell 1000® Index 12.90 7.86 24.03 2.19 4.53 6.43 9.77Large Cap Growth Equity 16.86 8.29 22.57 3.65 6.10 — 0.31 6/15/00Russell 1000® Growth Index 14.69 11.02 25.28 5.10 4.28 — -1.03Mid Cap Equity 16.33 3.92 27.35 4.62 — — 8.58 12/27/05Russell Midcap™ Index 12.94 3.31 29.13 3.03 — — 5.27Small/Mid Cap Equity 16.21 4.83 27.00 2.42 8.80 9.83 14.75 1/1/88Russell 2500™ Index 12.99 1.33 28.42 3.03 7.49 8.94 11.30 *Returns for periods longer than one year are annualized. Past performance is not indicative of future results. Please see GIPS Composite disclosures at the end of this presentation. A list of all firm composites, including annual returns, size and number of accounts, is available upon request.P/38
  41. 41. Performance Standards Disclosure Rainier Investment Management, Inc. claims compliance with the Global Investment Performance Standards (GIPS®). Rainier Investment Management, Inc.® is an independent registered investment adviser. Prior to 1991, Rainier Investment Management, Inc. was a separate entity within a large financial institution. The firm has been verified by an independent accountant from 1/1/87 to 12/31/11. Additional GIPS® and SEC one-on-one presentation disclosures: 1. To receive a complete list and description of Rainier’s composites and/or a presentation that adheres to the GIPS® standards, contact Rainier Investment Management, Inc. at (800) 536-4640. 2. Results are based on all fully discretionary accounts under our management, including those accounts no longer with the firm. All accounts are fee paying. 3. Performance results are computed in $U.S. All figures include income, reinvestment of capital gains, brokerage commissions, and exclude custodial fees and investment management fees. 4. All results are calculated on a time-weighted basis, weighted for the size of the account. 5. Balanced portfolio segments are included in the Large Cap Equity and Intermediate Fixed Income composites through 3/31/02. As of 1/1/03 fixed income portions of balanced accounts have been carved-out and added to the Intermediate Fixed Income composite. Cash has been allocated under GIPS® guidelines using separate portfolios to account for segment plus cash returns using a target asset allocation percentage. As of 7/1/09, fixed income portions of balanced accounts added to the Intermediate Fixed Income composite are run as separate fixed income plus cash portfolios. 6. Returns are presented gross of management fees and include the reinvestment of all income. Actual returns will be reduced by investment advisery fees and other expenses that may be incurred in the management of the account. The collection of fees produces a compounding effect on the total rate of return net of management fees. As an example, the effect of investment management fees on the total value of a client’s portfolio assuming (a) quarterly fee assessment, (b) $10,000,000 investment, (c) portfolio return of 5% a year, and (d) 0.90% annual investment advisery fee would be $92,170 in the first year, and cumulative effects of $499,835 over five years and $1,109,756 over ten years. Actual management fees may vary depending upon, among other things, the applicable management fee schedule and portfolio size. Investment management fees are described in Part II of the advisers Form ADV and current fee schedules are available upon request. 7. Past performance is not indicative of future results. 8. Latest quarterly returns may be preliminary and awaiting verification. A performance examination has been completed through December 31, 2011. Small/Mid Cap Equity Total Fund Composite: contains fully discretionary Small/Mid Cap Equity total fund accounts. $4,000 million, 26% of firm assets as of December 31, 2011. Mid Cap Equity Total Fund Composite: contains fully discretionary Mid Cap Equity total fund accounts. $1,147 million, 7% of firm assets as of December 31, 2011. Large Cap Equity Total Fund Composite: contains fully discretionary Large Cap Equity total fund accounts. $3,992 million, 26% of firm assets as of December 31, 2011. Large Cap Growth Equity Total Fund Composite: contains fully discretionary Large Cap Growth Equity total fund accounts. $4,033 million, 26% of firm assets as of December 31, 2011. All Cap Equity Total Fund Composite: contains fully discretionary All Cap Equity total fund accounts. $577 million, 4% of firm assets as of December 31, 2011. Balanced Composite Total Fund Composite: contains fully discretionary Balanced total fund accounts. $200 million,1% of firm assets as of December 31, 2011. Intermediate Fixed Income Total Fund Composite: contains fully discretionary Intermediate Fixed Income total fund accounts. $411 million, 3% of firm assets as of December 31, 2011. The High Yield Fixed Income Fund Composite: contains fully discretionary High Yield Fixed Income total fund accounts. $32 million, less than 1% of firm assets as of December 31, 2011. Index Disclosure: The Balanced Index is comprised of 60% Standard & Poors 500 Index, 35% Barclays Capital U.S. Intermediate Government/Credit Bond Index, 5% 91-Day U.S. Treasury Bills, rebalanced monthly. Actual asset allocation of the Balanced Composite may vary from the Balanced Index.

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