WASHINGTON STATE INVESTMENT BOARD JUNE 30, 2019 …

1 WASHINGTON STATE INVESTMENT BOARD MARCH 31, 2020. Total Alloca on Por olio (TAP). INVESTMENT Objec ve Performance The Total Alloca on Por olio (TAP) is a diversified por olio Fund(1) Benchmark(2). that is intended for long-term investors. TAP assets are invested globally across five major asset classes and Quarter broadly among industries and countries to maximize returns at a prudent level of risk. 1 Year 3 Year INVESTMENT Strategy 5 Year TAP assets are invested in public equi es, fixed income 10 Year products, private equity funds, real estate, and tangible assets such as mber and infrastructure. Under the direc on and oversight of the WASHINGTON STATE Historical Performance for Fiscal Years Ending June 30. INVESTMENT BOARD (WSIB), TAP assets are primarily managed by external INVESTMENT professionals and partners.

2 The fixed income por olio for the TAP is internally managed by WSIB sta . Public Equity The TAP's public equity program is structured to reflect the globaliza on of capital markets. INVESTMENT managers for this program are selected by the WSIB for their insights and long-term convic ons. They seek to achieve risk adjusted returns by finding the most a rac ve opportuni es wherever they are in the world. All investments are in broad market-based domes c and non- passive index funds and global and emerging markets ac ve mandates. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 FYTD. 2020. Fixed Income The fixed income program, directly invested by WSIB sta Composi on seeks a rate of return over the Barclays Capital Universal Index. Innovation Cash Fixed Income Private Equity, Real Estate, & Tangible Assets Private Equity These programs provide addi onal diversifica on for the TAP and provide access to long-term illiquid INVESTMENT opportuni es that are not typically available to most individuals.

3 INVESTMENT commitments in these asset Tangible Assets classes are generally considered more risky than publicly traded investments, but when employed consistently as part of a larger balanced por olio, they can o er higher returns than tradi onal public equity investments. Real Estate Public Equity Forr more Fo more iinforma nfor nforma ma on on on the the TAP. TAP which whic wh ich h is iden ide denn ccal al to to the the Commingled Comm Co mmin ingl gled ed Trust Tru rust st Fund Fun undd (CTF), (CTF. (C TF)), visit vis isit it our our website: web ebsi site te:: h p ://w ://www govv (1) All performance figures are provided net of the manager's fees and other expenses, currently , debited from the fund. This is the same return and cost for all the STATE 's re rement funds. Plan 3 members do not pay any addi onal fees to invest in the TAP.

4 Historical performance is not necessarily indica ve of future INVESTMENT performance, which could di er substan ally. All returns are calculated in dollars. (2) The custom benchmark weights various published market indices in accordance with the target INVESTMENT composi on of the TAP INVESTMENT pool. The index is currently derived from a weigh ng of 69% MSCI ACW IMI Gross and 31% Barclays Capital Universal as of January 2012. From 2008 to 2011 it was 69% Dow Jones Global TSMI and 31% Barclays Capital Universal. Prior to that, it was derived from 52% Dow Jones Wilshire 5000 (domes c stock index), 25% Lehman Universal (domes c fixed income index), and 23% MSCI ACWI ex US (interna onal stock index). The benchmark has changed over me in both the percentage weigh ngs and the target index.