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 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 STATE STREET INVESTMENT ANALYTICS Performance relative to Benchmark

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 STATE STREET INVESTMENT ANALYTICS Manager Performance – Latest Year Manager % of Total FundMandateFund Return % Benchmark Return %Difference UBS34 Global Equity Passive UBS17Global Equity Aberdeen20Global Equity Aberdeen26Global Bonds UBS2Property RReef2Property

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 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 UBS17Global Equity Aberdeen20Global Equity Aberdeen26Global Bonds UBS2Property RReef2Property

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

9 STATE STREET INVESTMENT ANALYTICS Contact details for further information Lynn Coventry – Client Manager State Street Investment Analytics 525 Ferry Road, Edinburgh EH5 2AW