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Nevada System of Higher Education Fourth Quarter 2016Legacy Defined Contribution Plan ReviewVisit the Aon Hewitt Retirement and Investment Blog (http://retirementandinvestmentblog.aon.com); sharing our best thinking.

Table Of Contents1234Executive SummaryFidelityTIAA-CREFVALIC1134353

Executive Summary1

Nevada System of Higher EducationAs of December 31, 2016Review/Watch List DisciplineThe Review List and Watch List are tools to assist the Committee in evaluating the Plans' investment options. The Committee will examine each of thePlans' investment options on a regular basis to ensure that the investment performance, style, and other relevant investment criteria are acceptable,given the purpose of each investment alternative. The quantitative and qualitative factors of the Review List are described below and include long-term(five-year) performance criteria and qualitative factors so that the investment options can be effectively evaluated on an ongoing basis.Quantitative FactorsInvestment performance will be evaluated on an annualized, trailing five-year period, measured on a rolling quarterly basis. Evaluation criteria will bebased on the following:Actively Managed Portfolios (net of fees) Asset Allocation Funds: Underperformed the benchmark Fixed Income: Underperformed the benchmark and ranked in bottom 50% of peer group Equity: Underperformed the benchmark and ranked in bottom 50% of peer groupPassively Managed Portfolios (net of fees) Asset Allocation Funds: Underperformed the benchmark by an annualized 0.2% Fixed Income: Underperformed the benchmark by an annualized 0.1% U.S. Equity: Underperformed the benchmark by an annualized 0.2% International Equity: Underperformed the benchmark by an annualized 0.3%Qualitative FactorsThe objective of qualitative factors is to identify events that could materially affect the management of the portfolio or the Committee's confidence in aninvestment option. The Committee and the consultant will work together to determine the materiality of an event. Specific events may include, but arenot limited to, the following: Significant organizational issues; Adverse change in portfolio management talent; Lack of adherence to stated investment philosophy and objectives; and Uncompetitive investment fees.An investment option that fails to meet its quantitative performance factors or any of the qualitative factors will be placed on the Watch List. Aninvestment option goes on the Watch List with a Yellow designation when it has failed to meet its objectives for two consecutive quarters. An investmentoption goes on the Watch List with an Orange designation when it has been on the Yellow Watch List for two consecutive quarters. An investment optiongoes on the Watch List with a Red designation when it has been on the Orange Watch List for two consecutive quarters. Investment options repeatedlyor consistently on watch may be candidates for replacement. An investment option will be removed from the Watch List after exceeding its quantitativeperformance factors and/or upon the satisfactorily resolution of its qualitative factors for two consecutive quarters.2

FidelityAs of December 31, 2016Fidelity Review ListFactorTier I - Asset Allocation Funds*Fidelity Freedom K Income tive*Fidelity Freedom K 2005 Fund*Fidelity Freedom K 2010 Fund*Fidelity Freedom K 2015 Fund*Fidelity Freedom K 2020 Fund*Fidelity Freedom K 2025 Fund*Fidelity Freedom K 2030 Fund*Fidelity Freedom K 2035 Fund*Fidelity Freedom K 2040 Fund*Fidelity Freedom K 2045 Fund*Fidelity Freedom K 2050 Fund*Fidelity Freedom K 2055 FundFidelity Asset Manager 20%Fidelity Asset Manager 30%Fidelity Asset Manager 40%*Fidelity Asset Manager 50%Fidelity Asset Manager 60%Fidelity Asset Manager 70%Fidelity Asset Manager 85%Strategic Advisers Multi-Manager 2035 FundStrategic Advisers Multi-Manager 2045 Fund*Fidelity Balanced Fund - Class K*Fidelity Puritan Fund - Class KFidelity Global Balanced FundFidelity Global Strategies 20152Q20153Q20154Q20151Q20162Q2016XXX3Q20164Q2016 /aXXXXXXXXXXXXXXXXXXXXIndicates failure to meet objectiveAn investment alternative goes on the Watch List with a Yellow designation when it has been on the Watch List for two quartersAn investment alternative goes on the Watch List with a Orange designation when it has been on the Yellow Watch List for two quartersAn investment alternative goes on the Watch List with a Red designation when it has been on the Orange Watch List for two quarters3XX

FidelityAs of December 31, 2016Fidelity Review List (Cont.)FactorTier II - Passive FundsSpartan Short-Term Treasury Bond Index Fund - AdvantageClass*Spartan U.S. Bond Index Fund - Advantage rmanceQualitativeFidelity Spartan Inflation-Protected Bond IndexSpartan Intermediate Treasury Bond Index FundSpartan Long-Term Treasury Bond Index FundFidelity Four-in-One Index Fund*Spartan Total Market Index FundFidelity Nasdaq Composite Index Fund*Spartan 500 IndexFidelity Large Cap Value Enhanced Index FundFidelity Large Cap Growth Enhanced Index FundSpartan Mid Cap Index Fund - Advantage ClassFidelity Mid Cap Enhanced Index Fund*Spartan Extended Market Index Fund- Advantage ClassSpartan Small Cap Index FundFidelity Small Cap Enhanced Index Fund*Spartan International Index Fund- Advantage ClassFidelity International Enhanced Index FundSpartan Global ex-U.S. Index FundSpartan Emerging Markets Index FundSpartan Real Estate Index FundTier III - Active FundsFidelity Money Market Trust RetirementGovernment Money Market PortfolioFidelity Retirement Money ty Money Market FundFidelity U.S. Treasury Money Market FundX2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 XXXXXXXXXXXXXIndicates failure to meet objectiveAn investment alternative goes on the Watch List with a Yellow designation when it has been on the Watch List for two quartersAn investment alternative goes on the Watch List with a Orange designation when it has been on the Yellow Watch List for two quartersAn investment alternative goes on the Watch List with a Red designation when it has been on the Orange Watch List for two quarters4XXXDowngraded to "Sell" in 3Q14

FidelityAs of December 31, 2016Fidelity Review List (Cont.)FactorTier III - Active FundsFidelity Cash ReservesFidelity Conservative Income BondFidelity Short-Term Bond FundFidelity Limited Term Government Fund(Formally Fidelity Inst. Short-Intermediate Govt. Fund)*Fidelity Inflation-Protected Bond FundFidelity Strategic Real Return Fund*Fidelity Government Income FundFidelity Intermediate Govt Income Fund*Fidelity Investment Grade Bond Fund*Fidelity Intermediate Bond FundFidelity Total Bond FundFidelity Corporate Bond FundFidelity Mortgage Securities FundFidelity GNMA FundFidelity High Income FundFidelity Focused High Income FundFidelity Floating Rate High Income Fund*Fidelity Strategic Income FundFidelity Capital & Income Fund*Fidelity Convertible Securities FundFidelity New Markets Income FundFidelity International Bond FundFidelity Global Bond FundFidelity Global High IncomeFidelity Stock Selector All Cap Fund - KFidelity Value Discovery Fund - K*Fidelity Equity-Income Fund - ualitativeXXXXXXXXXX Indicates failure to meet objectiveAn investment alternative goes on the Watch List with a Yellow designation when it has been on the Watch List for two quartersAn investment alternative goes on the Watch List with a Orange designation when it has been on the Yellow Watch List for two quartersAn investment alternative goes on the Watch List with a Red designation when it has been on the Orange Watch List for two 4Q2016 XXXXXMollenhauer replaced McConnell as Portfolio Manager in April XXXXXXXXXXXXXXXXXDowngraded to "Sell" in 2Q11 / Reaffirmed "Sell" rating in 2Q12Gavin replaced Hoffman as Portfolio Manager in January 2012Marrow replaced Peterson as Portfolio Manager in October 2011

FidelityAs of December 31, 2016Fidelity Review List (Cont.)FactorTier III - Active FundsEquity Dividend Income Fund - K(Formerly Equity Income II)*Fidelity Growth Company Fund - eFidelity Growth Discovery Fund - K*Fidelity Strategic Dividend & Income FundThe Fidelity Fund*Fidelity Magellan Fund - K*Fidelity Growth & Income Portfolio - KFidelity Capital Appreciation Fund - KFidelity Disciplined Equity Fund - KFidelity Focused Stock FundFidelity New Millennium FundFidelity Mega Cap Stock Fund*Fidelity Independence Fund - KFidelity Large Cap Stock Fund*Fidelity Dividend Growth Fund - KFidelity Blue Chip Value FundFidelity Stock Selector Large Cap Value Fund*Fidelity Contrafund - K*Fidelity Blue Chip Growth Fund - KFidelity Trend Fund*Fidelity OTC Portfolio - K*Fidelity Mid-Cap Stock Fund - KFidelity Leveraged Company Stock Fund - KFidelity Mid Cap Value Fund*Fidelity Value Fund - XXXXXXXXX4Q2016 CommentsXXDowngraded to “Sell” in 1Q14Significant Analyst turnover prior to XXXXXXXXXXXXXDowngraded to "Sell" in 2Q11 / Reaffirmed "Sell" rating in 2Q12Fruhan replaced Catudal as Portfolio Manager in February 2011XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXDowngraded to "Sell" in 2Q12Friedman replaced Dirks as Portfolio Manager in April 2013XKelly replaced Feingold as Portfolio Manager in January 2012XXXXXXXXXXXXXXXIndicates failure to meet objectiveAn investment alternative goes on the Watch List with a Yellow designation when it has been on the Watch List for two quartersAn investment alternative goes on the Watch List with a Orange designation when it has been on the Yellow Watch List for two quartersAn investment alternative goes on the Watch List with a Red designation when it has been on the Orange Watch List for two quarters6XXLimited track record for new Portfolio ManangerRoth replaced Perkins as Portfolio Manager in February 2011XXXXDignan replaced Dirks as Portfolio Manager in April 2013XXXXXDowngraded to "Sell" in 2Q11 / Reaffirmed "Sell" rating in 2Q12

FidelityAs of December 31, 2016Fidelity Review List (Cont.)FactorTier III - Active FundsFidelity Value Strategies Fund - anceFidelity Growth Strategies Fund - K*Fidelity Small Cap Stock FundFidelity Stock Selector Small Cap FundFidelity Small Cap Discovery Fund*Fidelity Low-Priced Stock Fund - KFidelity Small Cap Value FundFidelity Small Cap Growth Fund*Fidelity Diversified International Fund - KFidelity Strategic Advisers InternationalMulti-Manager FundFidelity International Discovery Fund - K*Fidelity Overseas Fund - KQualitativeFidelity Total International Equity ormanceQualitativeFidelity International Value FundFidelity International Growth FundFidelity International Capital Appreciation FundFidelity International Small Cap FundFidelity International Small Cap Opportunities FundFidelity Emerging Markets Fund - KFidelity Emerging Markets Discovery Fund*Fidelity Worldwide FundFidelity Real Estate Income Fund*Fidelity Real Estate Investment PortfolioFidelity International Real Estate 20154Q20151Q20162Q20163Q2016XXXXXXXXXXXXX4Q2016 Downgraded to "Sell" in 2Q11 / Reaffirmed "Sell" rating in 2Q12Lee replaced Calhoun as Portfolio Manager in April 2012XDowngraded from Hold to Sell in 2Q2013Downgraded to "Sell" in 2Q11 / Reaffirmed "Sell" rating in 2Q12Tillinghast returned from leave of absence in January 2012XXXXXn/an/aXXXVenanzi replaced Harrison November /aXn/aXn/aXn/aXn/aXn/aXn/aXXXXIndicates failure to meet objectiveAn investment alternative goes on the Watch List with a Yellow designation when it has been on the Watch List for two quartersAn investment alternative goes on the Watch List with a Orange designation when it has been on the Yellow Watch List for two quartersAn investment alternative goes on the Watch List with a Red designation when it has been on the Orange Watch List for two quarters7Downgraded to "Sell" in 2Q12Montemaggiore replaced Hart as Portfolio Manager in January 2012XZavratsky replaced Stairs as Portfolio Manager in September 2011Xn/aXn/aXn/aXn/aXXDowngraded to "Sell" in 2Q13