1. 1 STATE STREET INVESTMENT ANALYTICS London Borough of Merton Performance Review Period Ending 31st March 2012 Annual General Meeting Wednesday 19 th September 2012

2. 2 STATE STREET INVESTMENT ANALYTICS Fund Structure as at end March 2012 ManagerMandate Value at end March 2012% Value of Fund % Benchmark Allocation Total Equities£278.3 m70% UBS Global Equity Passive £133.4 m34% UBSGlobal Equity£67.3 m17% AberdeenGlobal Equity£77.6 m20% Total Bonds£103.1 m26%25% AberdeenGlobal Bonds£103.1 m26% Property£15.4m4%5% UBSProperty£8.4 m2% RReefProperty£6.9 m2% Total FundMulti Asset£396.9 m100%

3. 3 STATE STREET INVESTMENT ANALYTICS Performance relative to Benchmark

4. 4 STATE STREET INVESTMENT ANALYTICS Fund Performance – Year to end March 2012 Fund Return: 4.9% Benchmark Return: 4.5% Difference: +0.4% The above benchmark return was due to stock selection in Equity investments.

5. 5 STATE STREET INVESTMENT ANALYTICS Manager Performance – Latest Year Manager % of Total FundMandateFund Return % Benchmark Return %Difference UBS34 Global Equity Passive +1.4 +0.0 UBS17Global Equity-0.3-0.7+0.4 Aberdeen20Global Equity+4.1-1.5+5.7 Aberdeen26Global Bonds+14.5+16.5-1.8 UBS2Property+6.1+5.7+0.4 RReef2Property+2.5+5.7-3.0

6. 6 STATE STREET INVESTMENT ANALYTICS Fund Performance – Three years to end March 2012 Fund Return: 16.1% p.a. Benchmark Return: 15.9% p.a. Difference: +0.1% p.a. The above benchmark return was due to stock selection in Equity investments. This was reduced however by the unfavourable above benchmark commitment to Bonds during 2010.

7. 7 STATE STREET INVESTMENT ANALYTICS Manager Performance – Three Years Performance to end March 2012 Manager % of Total FundMandate Fund Return % p.a. Benchmark Return % p.a.Difference UBS34 Global Equity Passive +18.1+18.3-0.1 UBS17Global Equity+18.1+17.8+0.3 Aberdeen20Global Equity+22.9+17.7+4.5 Aberdeen26Global Bonds+10.3+10.1+0.2 UBS2Property+7.4+8.8-1.3 RReef2Property+5.1+8.8-3.4

8. 8 STATE STREET INVESTMENT ANALYTICS Long Term Annual Performance vs. WM Local Authority Universe

9. 9 STATE STREET INVESTMENT ANALYTICS Contact details for further information Lynn Coventry – Client Manager State Street Investment Analytics 525 Ferry Road, Edinburgh EH5 2AW 0131 315 5258 Lynn.coventry@StateStreet.com