1. Long Term Investment Portfolio Annual Review – FY 2011 September 8, 2011

2. Overview/Executive Summary Fiscal 2011 was fraught with multiple macroeconomic risks – U.S. Debt Ceiling – Perpetual European Debt Issues with threat of ECB disintegrating – Japanese Earthquakes and subsequent global business disruptions – Arab Spring Maintained Risk-Controlled stance throughout Year to protect portfolio – Took Equity exposure down to lowest level in recent history – Continued process of building illiquid portfolio including active secondary efforts Fiscal Year Investment Results of 16.8%, net of fees and expenses – Returns for the fiscal year may trail many equity-heavy peers by approximately 2% – OSU Portfolio carried 1/3 market equity risk and volatility of fixed income market Markets of July and August (Month to Date) saw Risk and Volatility spike – Equity Markets declined (14-16%) in 40 days to August 15 – OSU holding up well through this period with manager performance beating markets – July performance was down (0.42%) vs. major equity market indices being down (1.6-3.6%) 1

3. Long Term Investment Pool – June 30, 2011 University Endowment $921,219,450 Foundation Endowment 484,426,575 Long Term Operating Fund 696,675,812 Maintenance & Renewal Funds 18,392,410 Total Long Term Investment Pool $2,120,714,246 2

4. Asset Allocation as of June 30, 2011 Global Equities18.1% Long/Short Equities18.9% Fixed Income 10.9% Absolute Return 20.6% Private Equity 7.9% Distressed Debt 6.2% Opportunistic 3.5% Real Estate 4.2% Natural Resources 3.8% Commodities 2.9% Infrastructure 3.0% Market Exposure 37.0% (Range 10 – 50%) Risk Reducers 31.5% (Range 25 – 50%) Return Enhancers 17.6% (Range 10 – 25%) Inflation Hedges 13.9% (Range 10 – 25%) 3

5. FY 2011 Returns Benchmark Returns 2 Year Annualized Returns Dollars Deployed Long-Only Equity32.2%24.4%18.7%$ 383.8 MM Long/Short Equity11.7%24.4%10.3%$ 399.7 MM Fixed Income5.7%4.2%6.5%$ 231.3 MM Absolute Return Hedge Funds7.9%4.2%13.0%$ 436.5 MM Buyouts17.7%21.3%17.7%$ 101.8 MM Venture Capital14.3%21.3%10.8%$ 15.5 MM Distressed Debt13.7%21.3%25.2%$ 131.9 MM Opportunistic14.5%21.3%31.2%$ 74.2 MM Natural Resources59.6%9.3%27.1%$80.7 MM Real Estate26.5%9.3%(2.9%)$90.3MM Commodities2.5%9.3%1.1%$62.2 MM Infrastructure30.5%9.3%13.7%$63.4 MM Other (FoFs; Sec. Funds; EM P/E)16.7%21.3%13.5%$49.4 MM Investment Performance – Fiscal Year 2011 4

6. Comparison of Returns vs. Benchmarks - FY 2011 FY 2011 Actual FY 2011 Benchmarks One Year Bench Comp Two Year Returns Two Year Bench Comp Market Exposure (37.0%)22.9%24.4%(1.5%)18.7%1.3% Risk Reducers (31.5%)7.3%4.2%3.1%10.2%6.0% Return Enhancers (17.6%)14.8%21.3%(6.5%)25.2%4.2% Inflation Hedges (13.9%)28.3%9.3%19.1%11.3%5.3% Totals16.8%13.7%3.1%16.2%4.9% 5

7. -30 Day Liquidity -Estimated at $661MM (31.2% of Portfolio) -5.5X Coverage for Annual Distribution to the University -3.1X Coverage for Annual Distribution + Estimated Annual Capital Calls -2.2X Coverage for Above assuming a 30% Decline in Liquid Asset Values -1.2X Coverage for Annual Distribution + Total Potential Capital Calls - 365 Day Liquidity -Estimated at $1.29 Billion (61.2% of Portfolio) -10.8X Coverage for Annual Distribution to the University - 6.2X Coverage for Annual Distribution + Estimated Annual Capital Calls - 4.3X Coverage for Above assuming a 30% Decline in Liquid Asset Values - 2.0X Coverage for Annual Distribution + Total Potential Capital Calls -Does not include redemptions in process ($11.0 MM ) -Unfunded Capital Commitments = 23.5% of LTIP Totals (@ 7/31/2011) -Assumes No Distributions to University from Illiquid Investments; No New Gift Inflow Liquidity Measures (@ June 30, 2011) 6

8. Upside/Downside Capture – Last Two Years 7 OneYearTwoYears UpsideDownsideUpsideDownside Vs. S & P 500 44.2%22.7%47.8%26.4% Vs. ACWI 36.5%3.5%45.9%19.3%  The Portfolio was designed and changed in 2008/2009 with implementation from 2009 through today.  That was a period of exceptionally high risk and, in the estimation of some, remains a period of high risk today.  The primary job of the Investment Office is to act as a fiduciary for the University, preserving capital, and funding the University to the extent required by policy.

9. 8 Metrics – Fiscal Year 2011

10. 9 Metrics – Two Years (FY2010 & 2011) Annualized

11. 10 Private Capital Diversification Over Time (MV as of 06/30/2011)

12. Illiquid Portfolio Analysis (@7/31/2011) Net Asset Value (NAV): All Privates$520 Million or 24.7% of LTIP Unfunded Commitments$494 Million or 23.5% of LTIP Return Enhancers $337 Million Inflation Hedges$157 Million Cash Flows: Wtd. Avg. Age of Portfolio: Commitments2.9 Years Unfunded2.0 Years 11 FY 2009FY 2010FY 2011FY 2012 E Capital Funding($174MM)($125MM)($141MM)($190MM) Distributions$17MM$62MM$72MM$150MM Net Cash Outflow($157MM)($63MM)($69MM)($40MM)

13. The Ohio State University Office of Investments investments.osu.edu 12