5. Presentation by The Boston Company Emerging Markets - Annual Performance Review as of December 31 , 2010

5 C. Warren Skillman Senior Portfolio Manager (617) 722-7351

John D. Havens Senior Relationship Manager (617) 722-7031

Los Angeles Water and Power Employees’ Retirement Plan P R E S E N T S Emerging Markets Value Equity Management

March 9, 2011 LADWP 3/9/11 Table of Contents

Section A: Company Overview 3

Section B: Investment Process and Discipline 12

Section C: Market Overview 20

Section D: Performance Review 27

Section E: Country Weights and Portfolio Structure 37

Section F: Portfolio Holdings, Fees & Disclosures 40

2 LADWP 3/9/11

Company Overview

3 LADWP 3/9/11 The Boston Company Asset Management, LLC As of December 31, 2010

Boston Safe Deposit Company incorporated 1867, The Boston Company Asset Management established 1970

Independent teams focused on a fundamental research approach to global equity management

Total Assets Under Management: $39.4 Billion* Total Staff: 228

Total Clients: 218 Total Investment Professionals: 86

US Equity Non US Equity Alternative Large Cap Global Equity Long/Short Mid Cap Developed Markets Market Neutral Small/Mid Cap Emerging Markets Small Cap Region/Country Specific Short Extension Small Cap Sector Specific

*As of December 31, 2010 approximately $45 million of the Market Neutral assets have been placed in administration in the UK and are currently unavailable. Includes 4 assets managed by investment personnel of The Boston Company Asset Management, LLC acting in their capacity as officers of affiliated entities. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. 1030 LADWP 3/9/11 Explanation of Mandate

Investment Management Style & Investment Process

 The Boston Company’s Emerging Market Value Equity Management mandate is an active strategy which is value orientated in style.

 The strategy seeks to add value through stock selection. Stocks are selected based upon research done by our in-house investment professionals. Our research focus is on bottom up fundamental analysis.

 We seek stocks with compelling combination of: Valuation, Fundamentals and Business Momentum.

Investment Objective

 Our goal is to exceed the return on the MSCI Emerging Markets Index over a full market cycle

Mandate Size & Account Type

 LADWP is a participant in our Emerging Markets Value Pooled Fund.

 As of December 31, 2010 total Emerging Markets Value assets managed for LADWP were $137,557,649.

 As of December 31, 2010 total assets managed for the Emerging Markets Value strategy across all Clients were $9.2B.

5 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 The Boston Company Asset Management, LLC: Representative Client List

Corporate Endowments/Foundations Public Ta f t -Hartley American Airlines, Inc. American Honda Foundation California Public Employees’ Retirement System Actors Equity Association American Beacon Advisors Care First, Inc. City of Boston Retirement System Connecticut Carpenters Baker Hughes Incorporated College of the Holy Cross City of Brockton Retirement Board Graphic Arts Industry Barnes Group, Inc. Michigan State University City of Clearwater Firefighters National Electric Benefit Fund Care First, Inc. Society of Jesus of New England City of Delray Beach Rhode Island Laborers CIBC The College of William & Mary Foundation City of Miramar Police & Fire Continental Airlines, Inc. The Jewish Federation of Metropolitan Detroit City of New Bedford Retirement Board Eastern Connecticut Health Network, Inc. The Lubrizol Corporation City of North Miami Retirement System Ericsson, Inc. University of Alabama Health Services City of Phoenix Employees Retirement System General Conference Corp. of Seventh-Day Adventists University of the Redlands City of Sarasota Police Officers Goodrich Corporation Villanova University City of Taunton Retirement Board Intermountain Healthcare Fireman's Annuity & Benefit Fund of Chicago MAFCO Holdings, Inc. Los Angeles City Employees' Retirement System Motorola, Inc. Massachusetts Water Resources Authority PacifiCorp, Inc. Mississippi Healthcare Trust Fund Public Service Enterprise Group, Incorporated Mississippi Prepaid College Tuition Scripps Health Mississippi Public Employees The Bank of NY Mellon (Mellon Pension Services) Norfolk County Retirement Board The Bank of NY Mellon (The Dreyfus Corporation) Norwood Retirement System The Lubrizol Corporation Plymouth County Retirement System Verizon Investment Management Corporation San Jose Retirement System - Police and Fire Waste Management, Inc. St. Louis Police St. Paul's Teacher's Retirement Fund St. Petersburg Fireman's Pension Fund Teachers’ Retirement System of the State of Illinois Town of Fairfield Retirement System Virginia Retirement System

6 TBCAM representative client list consists of clients invested in separately managed and commingled accounts through an affiliate. The client list represents a cross section of clients by type, product and geographic region. The client list was not determined based upon performance-based criteria. It is not known whether the listed clients approve or disapprove of the adviser or the advisory services provided. LADWP 3/9/11 The Boston Company Asset Management, LLC Organizational Chart

David H. Cameron, CFA Chairman, President & Chief Executive Officer

John Truschel, CFA Joseph P. Gennaco Richard K. Watson, Jr. Executive Vice President & Executive Vice President & Executive Vice President & Chief Investment Officer Chief Operating Officer Head of Distribution

Product Portfolio Teams Compliance Operations Development and Management

Investment Global Equity Relationship Systems and Administration Trading Management Data

Vendor and Portfolio Marketing and Core Research Commission Implementation Communications Management

Quantitative Finance Distribution Support Research

Portfolio Strategy

7 LADWP 3/9/11 Investment Division: Equity Te a m s Organizational Chart John Truschel, CFA Executive Vice President & Chief Investment Officer

Portfolio Team Strategy Team Members

Joseph M. Corrado, CFA US Small Cap and Small Mid Cap Value 7 David A. Daglio, CFA US Small and Mid Cap Opportunistic 8 Brian C. Ferguson US Large Cap Value 5 Sean P. Fitzgibbon, CFA Global Core and Market Neutral 12 D. Kirk Henry, CFA Global Value 17 Elizabeth Slover US Large Cap Growth 17

B. Randall Watts, Jr. CFA US Micro Cap, Small Cap and Small Mid Cap Growth 8

Shared Resources Strategy Team Members

Elizabeth Slover Core Research 17

Martin D. Stephan, CFA Quantitative Research 6

William J. Adams and George C. Saffaye Portfolio Strategy 6 David L. Brooks Global Equity Trading 8

8 LADWP 3/9/11 Emerging Markets Value Equity: Investment Team

Research and Management Industry Years at Title Country/Sector Coverage Experience Firm* D. Kirk Henry, CFA Senior Managing Director, Senior Portfolio Manager, BA, Stanford University; 29 16 Europe, Asia ex- Director of International Value Equity MBA, University of Chicago Clifford A. Smith, CFA BS, Pennsylvania State University; 15 15 Senior Managing Director, Senior Portfolio Manager Japan, Australia, US MS, Princeton University; MBA, Carnegie Mellon University C. Warren Skillman BA, Boston College; 17 5 Managing Director, Senior Portfolio Manager Latin America, EMEA, Emerging Asia MSc, London Business School Carolyn M. Kedersha, CFA, CPA BA, George Washington University; 29 22 Managing Director, Senior Portfolio Manager Emerging Small Cap, Latin America MBA, Rutgers University Andrea M. Clark, CFA BS & MBA, Suffolk University 24 11 Director, Senior International Research Analyst Europe, US William J. Adams BA, Boston College 15 5 Director, Portfolio Strategist MBA, University of Maryland William C. Jurik, CFA 16 16 Managing Director, Senior Portfolio Manager Europe, US/Global Financials BS & MBA, Carnegie Mellon University Parameswari Roychoudhury, CFA BSc, St. Xavier’s College, Kolkata, ; 19 19 Director, Senior International Research Analyst Europe, India MA, Tufts University Michelle Y. Chan, CFA BA, University of ; 19 9 Director, Senior International Research Analyst Asia ex-Japan MS, Purdue University Alain L. Chinca, CFA BS, Université de Nice; 19 10 Director, Senior Quantitative Analyst MS, Université de Paris IX; MBA, Babson Graduate School of Business Takamune Fujikawa, CFA BS, NYU Stern School of Business 16 2 Director, Senior International Research Analyst Japan

9 *Includes tenure at The Bank of New York Mellon Corporation affiliates. LADWP 3/9/11 Emerging Markets Value Equity: Investment Team continued

Research and Management Industry Years at Title Country/Sector Coverage Experience Firm* Frank J. Goguen, CFA Japan, Europe, Australia/ BS, Boston College; 15 15 Director, Senior International Research Analyst Global Pharmaceuticals MBA, Bentley College Derek M. Thieme BA, Assumption College; 12 10 Director, Senior International Research Analyst Emerging Asia, EMEA MBA, FW Olin Graduate School Ranjit Rajamani B.Com., Loyola College, Madras, India; Emerging Asia, Europe/ 15 3 Director, Senior International Research Analyst M.Com., Loyola College, Madras, India; Global Materials & Industrials MBA, University of Texas Thomas D. Grant, CFA BA, Williams College; 10 4 Vice President, International Research Analyst EMEA, Emerging Small Cap MBA, MIT Sloan School of Management Anthony J. Ryan, CFA BSc, University of Sheffield, UK; 8 5 Director, Senior International Research Analyst Canada/Global Energy & Technology MSc, Imperial College, London; MBA, Boston College Lawrence R. Curran, Jr. BA, Middlebury College 9 9 Vice President, International Research Analyst Latin America, Japan Trading

David L. Brooks 19 12 Managing Director, Head of Trading

Cecelia L. Mead 18 6 Vice President, Senior Trader

Elisabeth P. Thayer 12 13 Vice President, Trader

Christopher Dorin 9 2 Vice President , Trader

Aykut Terzioglu 11 11 Senior Associate, Portfolio Coordinator

Ian Johnston, CFA 9 7 Senior Associate, Portfolio Coordinator

Lou Raffetto, CFA 7 <1 Senior Associate, Portfolio Coordinator

10 *Includes tenure at The Bank of New York Mellon Corporation affiliates. LADWP 3/9/11 Key Contacts

Portfolio Management Executive Management Relationship Management D. Kirk Henry, CFA David H. Cameron, CFA John D. Havens Director of Non-US Value Equity President & Chief Executive Officer Senior Relationship Manager BNY Mellon Center, Suite 024-0146 BNY Mellon Center, Suite 024-0146 BNY Mellon Center, Suite 024-0146 201 Washington St. 201 Washington St. 201 Washington St. Boston, MA 02108-4408 Boston, MA 02108-4408 Boston, MA 02108-4408 (617) 722-7051 (617) 248-6206 (617) 722-7031 [email protected] [email protected] [email protected] C. Warren Skillman John Truschel, CFA Portfolio Management Chief Investment Officer BNY Mellon Center, Suite 024-0146 BNY Mellon Center, Suite 024-0146 201 Washington St. 201 Washington St. Boston, MA 02108-4408 Boston, MA 02108-4408 (617) 722-7351 (617) 248-6224 [email protected] [email protected] William J. Adams Portfolio Strategist BNY Mellon Center, Suite 024-0146 201 Washington St. Boston, MA 02108-4408 (617) 722-7456 [email protected]

11 LADWP 3/9/11

Investment Process and Discipline

12 LADWP 3/9/11 Emerging Markets Value Equity: Key Features

Features We seek to:

 Apply active stock selection – Uncover overlooked investment opportunities, limit index overlap

 Invest early in business cycle/sell ahead of peak – Capture initial performance recovery, avoid crowding out impact

 Look across all market caps – Gain exposure to local trends, tomorrow’s leaders

 Remain Diversified – Control risk without performance dilution

Potential Benefits

 Above-average risk adjusted performance over a full market cycle

13 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 Emerging Markets Value Equity: Investment Philosophy

Relative Value Research Risk

 Look to invest in stocks that  Apply fundamental analysis to  Avoid unintended risk are undervalued relative to validate investment through diversification peers opportunity  Minimize price risk  Avoid the value trap  Focus on key drivers that through stock selection influence business and stock performance

14 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 Emerging Markets Value Equity: Opportunity Cycle

Earnings Peak Decline Bottom Recovery Peak Cycle

Stock Price

Time Period: 3 - 5 Years

15 Source: TBCAM No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Hypothetical example and for illustrative purposes only. The chart reflects TBCAMs analysis of the main phases in the price of a stock. LADWP 3/9/11 Emerging Markets Value Equity: Investment Process

Idea Generation Fundamental Analysis Portfolio Construction

 Input:  Input:  Input: – FactSet Emerging Markets Database – Highly ranked value stocks – Analysts’ research – 1800 stocks – Bottom 40% of universe – Client guidelines – > $500 M market cap – Internal risk controls

 Action:  Action:  Action: – Identify investment candidates – Analyze financials – Portfolio management team makes buy & sell decisions – Value – Local research data – Maintain industry & country – Fundamentals – Discussion with company diversification management – Momentum – Estimate earnings/price target range – Make recommendation

16 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 How We Select Stocks

We seek to buy stocks that exhibit:

 Good value characteristics

– Traditional multiples Va l u e Fundamentals How much are How sound is the – P/E, P/B, P/CF we paying? business?

 Strong business fundamentals

– Sound capital structure

– Product position Business Momentum Can profitability – Management strategy improve?

 Improving business momentum

– Cyclical recovery Prime Candidates

– New market/product launch

– Restructuring

17 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 Sell Decision

We sell stocks that violate any one of the circles:

 Full valuation Valu e Fundamentals Has the company met Are fundamentals deteriorating?  Deterioration of business its price target? fundamentals

 Negative business momentum

Business Momentum Is business getting worse?

18 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 Emerging Markets Value Equity Guidelines

Risk Controls

 Generally, no one country will represent more than the greater Country Diversification of 20% of the portfolio or 5 percentage points above the index weight  Invested in a minimum of 15 countries

Sector Diversification  Typically, no more than 10 percentage points above the index weight

Normally 125–175  Reduces stock specific risk Holdings

Maximum Investment  5 percent at market at time of purchase in One Stock

Cash  Seek to be fully invested; cash is typically below 5 percent

19 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11

Market Overview

20 LADWP 3/9/11 2010 Emerging Markets – Investment Environment

 Emerging Markets lived up to expectations in 2010, delivering solid results and outperforming more mature countries. Superior financial strength, robust consumer spending, and better profitability attracted record fund flows into Emerging Market equities. Aggressive monetary easing in developed countries encouraged investors to look elsewhere for return, with Emerging Markets the preferred destination. Smaller markets were top performers, advancing sharply on massive investment flows. The better-known BRIC markets (Brazil, Russia, India, ) turned in modest results by comparison. China transitioned from stimulative monetary and fiscal policy to a tighter position on lending and real estate development. Inflation led to higher interest rates in several markets, particularly India. This caused volatility in certain cyclical industries, particularly cement and steel, as excess supply put pressure on prices globally. Energy was also held back by weak gas demand from developed countries and the higher costs associated with deep- water offshore production. The consumer sectors turned in top performance as robust demand drove top-line sales higher.

 The Boston Company’s Emerging Markets Value Equity strategy lagged the MSCI EM Index as value headwinds mounted during the year. For example, Consumer Staples, the portfolio’s weakest-performing sector in 2010, is trading at a lofty 2011 P/E of 18.6x, versus the Index at 11.9x. It became increasingly more difficult to find quality consumer stocks that were not excessively valued as the year progressed. In addition, the portfolio’s South Korean consumer stocks turned in disappointing performance. Escalating tension with North Korea damaged consumer morale, as rising input costs hit gross margins. Nongshim, a noodle company, Hite Brewery, and spirits company Jinro Ltd traded poorly most of the year. Limited exposure to top performing chemical and industrial exporters added to the portfolio’s troubles in . Another area of relative underperformance was the Materials sector, in general, a standout performer this year. With margins near peak, costs rising, and a fragile mature market recovery, we have questioned profit sustainability in the sector. Many of the portfolio’s Materials holdings delivered respectable results, yet fell behind high consensus trades around copper and iron ore. As the year closed, we noted a nascent shift in market trend, with many investors taking profit in pricey stocks and redeploying funds to inexpensive segments, such as Brazilian telecom and technology hardware.

 Following our strategy’s fairly strong 2008 – 2009 results, we expected the comparables to be more challenging in 2010, but the vigorous fund flows into Emerging Markets were beyond our expectations. Certain market segments quickly moved out of our fair value range, and momentum became a key determinant in relative performance. We cannot rule out ongoing investment flows in the first half of 2011, as the US Federal Reserve embarks on QE II. However, normalcy should return as developed market governments lay off the stimulus. If the US surprises on the upside, a potential dollar rally could cause investors to take profit in Emerging Markets and reinvest locally. That is not the biggest risk to Emerging Market prominence, however. Balancing inflation and growth will be a delicate task for policy officials, particularly when the Western world remains embroiled in a painfully slow recovery.

21 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 2010 Emerging Markets – Investment Environment – cont.

 Yet, with GDP growth expected to moderate next year, and labor and raw material costs rising, the Emerging Markets ROE advantage may narrow. The objective of most governments is to maintain growth while keeping inflation at bay by using a range of tools from interest rates to currency controls. Even with these pressures, however, there are market segments that exhibit compelling value characteristics and potential profit expansion. It is possible that stock selection could finally become more important in delivering strong relative performance than macro trends. We have seen this take hold in the larger countries, such as China and Brazil, where strong economic growth had only moderate impact on market performance this year.

 China’s 2010 performance was rather flat despite its economic power, with GDP up 10%. Inflationary fears, tighter monetary policy and highly publicized wage disputes dragged on the equity market. China’s evolution requires more competitive wages and, arguably, a stronger currency, but the path to a domestically driven economy is not without obstacles. Market pressure has created several opportunities, including China Railway Group Ltd, Asia’s largest construction company, and Sinotrans, a leading logistics company. As Chinese consumption becomes a greater portion of GDP, energy demand will continue to rise, even as metal demand wanes. This is because oil and gas are tied more to household than industrial usage. PetroChina, the country’s incumbent oil producer, is highly exposed to this growing energy demand. Consumer demand for sportswear remains strong, but competition is fierce. China Dongxiang, third in market share following Nike and Adidas, declined as cost pressure and inventory weighed on quarterly results. We believe the stock is attractive at this level. With a former Adidas veteran as CEO, the company plans to execute a multi-brand offering and streamline distribution.

 Conversely, inflation is benign in , running a bit above 1%. The country is home to a formidable technology hardware industry that stands to benefit from corporate investment, which has been slow to recover, and increased penetration in Emerging Markets. Companies such as Quanta Computer should see a demand rebound this year. South Korea is Asia’s least expensive market. Inflation is under control, employment is strong, and consumer debt has declined. However, the capital goods and chemical industries have risen markedly on exports. We prefer domestic Korea, which has lagged by comparison. KB Financial, the country’s largest bank, is undergoing a restructuring program to improve the cost base. In addition, unlike other Korean banks, it has been slow to realize loan recoveries from the shipping industry. The company should rally as lending improves, restructuring costs subside and ROE recovers from a paltry 1%.

22 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 2010 Emerging Markets – Investment Environment – cont.

 Inflation surged to mid-teen levels in India as drought conditions depleted food supplies and robust demand supported consumer product and real estate sales. The Reserve Bank of India has used both interest rates and reserve requirements to control prices and lending, and inflation should subside in the second half of 2011. Valuations are lofty at 17x 2011 earnings, but India is in the early stage of infrastructure development, unlike China. The pace will likely be slower due to the embedded and often paralyzed democracy, but demographics and sheer determination should keep the country on track. A company likely to be a key participant in the India growth story is Reliance Industries, which has evolved from petrochemical production to a fully integrated energy producer.

 Latin America saw a change in performance leadership this year, with Brazil the weaker performer against the smaller markets of Chile, Colombia and Mexico. A sizeable equity offering from Petrobras and excess steel inventories suppressed energy and certain commodity stocks. We have added to Petrobras and are overweight the position, which has the highest production growth profile of the oil majors. In addition, Brazil’s abundant reserves relieve the company from exploring in countries with unstable governments, a common earnings risk for many oil companies. Mexico is relatively expensive at 16.6x 2011 earnings, with limited investment opportunities outside construction and consumer-related stocks. We remain underweight on valuation concerns.

 The Eastern European, Middle Eastern, and African markets could be the most volatile in 2011. Investors are cautiously awaiting resolution to the sovereign debt issues in Western Europe. Russia should be the standout performer, assuming firm oil prices, strong consumer demand and geopolitical stability. Energy stocks have lagged the more robust base metal commodities, and we have added steadily to the sector. Gazprom, Russia’s gas giant, was hit by market share losses in Western Europe and by local tax hikes. The company trades on just 1.1x enterprise value/proven and probable reserves, the lowest among large global peers. As Western Europe continues to recover, spot prices should improve and Gazprom will be better positioned to renegotiate favorable supply contracts. Russian telecommunications company VimpelCom recently acquired assets in Italy, Algeria and Bangladesh after a complicated merger process that involved multiple controlling shareholders. The stock trades at a deep discount to other telecommunication companies with similar footprints and paid a reasonable price for the assets. A consumer-spending recovery is just getting started in South Africa. Inflation is low at 3.6%, household debt has declined and retail sales have picked up. Retailers and other consumer companies appear to fully reflect a more dynamic spending environment, but banks have not yet rebounded. Standard Bank and Nedbank are highly geared to a credit recovery in South Africa, with the former also positioned strategically throughout the continent.

23 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 Investment Outlook

 Investors should expect a more complicated outlook for Emerging Markets as economies develop and advance to a higher underlying base. Although there will be exploitative inefficiencies, they will likely be on a stock level, versus country or sector. Healthy volatility and discriminating markets favor our investment approach, which tends to avoid the trappings of trend investing. Instead, we look to invest at the company level, paying close attention to valuation, the quality of a business franchise and the prospects for margin expansion. We are optimistic that Emerging Market companies will become global leaders and look forward to participating in that journey on your behalf. As always, we greatly appreciate your support and wish you a healthy and prosperous 2011.

24 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 Emerging Markets: A Growing Impact on Global Economy

Emerging Markets' position in the world*

Population Density Share of GDP Share of World Market Cap

Emerging Advanced 13% 15% Emerging 46% Advanced 54% Emerging 85% Advanced 87%

Real GDP Growth** 10

8

6

4 Industrialized Economies

2 Emerging Markets % GDP GDP % Growth 0

-2 ** ** -4 2009 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2011E 2010E

Sources: *IMF World Economic Outlook Database, 2009 data, MSCI; **MS Asia Banks team, Morgan Stanley Research estimates (2010E, 2011E) 25 Some information contained herein has been obtained from third party sources that are believed to be reliable, but the information has not been independently verified by TBCAM. TBCAM makes no representations as to the accuracy or the completeness of such information. See other important disclosures at the end of this presentation. LADWP 3/9/11 Emerging Markets Value Equity: Current Bottom Up Themes

. Rapid loan growth in past 18 months = rising NPLs? Underweight Chinese Financials . Property developers at risk due to rising supply & falling demand

. Relative valuations at wider discount than normal vs. MSCI EM Overweight South Korea . Broad array of attractive ideas – Consumer Staples, Financials, Information Technology . More opportunities in domestic demand oriented Overweight Small Cap sectors . Less efficient with higher growth potential

26 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Statements of opinion constitute only current opinions of TBCAM, which are subject to change.

971 LADWP 3/9/11

Performance Review

27 LADWP 3/9/11 Compliance Certification

To the best of our knowledge, for the year ending December 31, 2010, The Pooled Employee Emerging Markets Value Equity Fund, in which Los Angeles Water & Power Employees' Retirement Plan is a participant, was in compliance with its investment guidelines.

John D. Havens Director Senior Relationship Manager

28 LADWP 3/9/11 Investment Objective

The Boston Company Asset Management, LLC’s investment objective for the LADWP portfolio is to outperform the MSCI EM Index over a full market cycle.

29 LADWP 3/9/11 Investment Performance

As of December 31, 2010

Percent 25.0

20.0

15.0 Portfolio Market Value: 10.0 $137,557,649

5.0

0.0

-5.0 Since Inception Quarter One Year Three Years Five Years (3/2/05) Total Portfolio 7.22 17.37 5.10 13.93 15.49 (Gross of fees) MSCI EM 7.36 19.20 -0.03 13.11 15.25

30 Returns for periods greater than one year are annualized. Past performance is not a guarantee for future performance. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. LADWP 3/9/11 Emerging Markets Value Equity: Annualized Composite Returns

As of December 31, 2010

Percent 25.0

20.0

15.0

10.0

5.0

0.0

-5.0 Since Inception Quarter One Year Three Years Five Years Ten Years (7/1/95) Emerging Markets Value 7.29 17.71 4.80 13.82 18.60 14.14 (Gross of fees) MSCI EM 7.36 19.20 -0.03 13.11 16.23 8.55

31 Returns for periods greater than one year are annualized. Past performance is not a guarantee for future performance. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. LADWP 3/9/11 Emerging Markets Value Equity: Annual Composite Returns

Percent 100.0

80.0

60.0

40.0

20.0

0.0

-20.0

-40.0

-60.0 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 Emerging Markets Value 17.71 79.47 -45.52 28.24 29.43 27.73 29.35 57.30 1.35 9.42 -19.00 77.75 -16.52 0.51 19.15 (Gross of fees) MSCI EM 19.20 79.02 -53.18 39.78 32.59 34.54 25.95 56.27 -6.00 -2.37 -30.61 66.41 -25.34 -11.58 6.03

32 Past performance is not a guarantee for future performance. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. LADWP 3/9/11 Emerging Markets Value Equity*: Returns in Various Market Conditions

June 1996 – December 2010 Below Average Performance Period Qrtly Return: < -10% 11 Observations 0.00% -2.00% -4.00% -6.00% -8.00% Average Performance Period -10.00% -12.00% -14.43% Qrtly Return: > -10% & < +10% 29 Observations -14.00% -16.00% 2.00% -18.69% -18.00% 1.80% -20.00% 1.60% 1.75% TBCAM Average Return MSCI EM Average Return 1.40% Annualized Alpha: +17.03% 1.20% 1.00% 1.01% 0.80% Above Average Performance Period 0.60% Qrtly Return: > +10% 19 Observations 0.40% 18.00% 0.20% 16.00% 17.99% 18.08% 0.00% 14.00% 12.00% TBCAM Average Return MSCI EM Average Return 10.00% 8.00% Annualized Alpha: +2.95% 6.00% 4.00% 2.00% 0.00% TBCAM Average Return MSCI EM Average Return

Annualized Alpha: -0.36%

*Representative institutional account Source: InterSec Research, December 2010 33 Data shown above is gross-of-fees performance. Past performance is not a guarantee for future performance. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. Some information contained herein has been obtained from third party sources that are believed to be reliable, but the information has not been independently verified by TBCAM. TBCAM makes no representations as to the accuracy or the completeness of such information. 1232 LADWP 3/9/11 Emerging Markets Value Equity: Country Attribution*

January 1, 2010 – December 31, 2010

Emerging Markets Value MSCI EM Variance Attribution Analysis

Average Average Relative Percent Country Return by Percent Country Return by Percent Weight Excess Contribution Allocation Selection Interaction Total Country Weight Country Contribution Weight Country Contribution vs. Index Return vs. Index Effect Effect Effect Effect

Brazil 15.2% 4.7% 1.6% 16.0% 6.8% 1.7% -0.9% -2.1% -0.1% 0.3% -0.5% 0.0% -0.2% Chile 0.0 0.0 0.0 1.6 44.8 0.7 -1.6 -44.8 -0.7 -0.4 0.0 0.0 -0.4 China 17.7 10.4 2.1 18.1 4.8 1.1 -0.4 5.6 1.0 0.1 1.0 0.0 1.2 Colombia 0.0 0.0 0.0 0.8 43.4 0.4 -0.8 -43.4 -0.4 -0.2 0.0 0.0 -0.2 Czech Republic 0.0 0.0 0.0 0.4 -1.7 0.0 -0.4 1.7 0.0 0.1 0.0 0.0 0.1 Egypt 0.0 7.7 0.0 0.5 12.4 0.0 -0.5 -4.7 0.0 0.1 0.0 0.0 0.1 Hong Kong 0.7 30.9 0.3 0.0 -4.8 0.0 0.7 35.7 0.3 0.1 0.0 0.0 0.1 Hungary 0.4 11.0 0.1 0.5 -9.6 -0.1 -0.1 20.6 0.2 0.1 0.1 0.0 0.2 India 8.8 17.0 1.7 7.9 20.9 1.7 1.0 -3.9 0.0 0.1 -0.2 0.0 -0.1 Indonesia 1.4 30.5 0.5 2.2 34.6 0.8 -0.8 -4.1 -0.3 -0.1 -0.1 0.0 -0.2 Israel 0.8 0.3 0.0 1.1 -6.0 -0.2 -0.4 6.3 0.2 -0.1 -0.3 0.2 -0.2 Malaysia 3.1 46.6 1.3 2.9 37.0 1.0 0.2 9.6 0.3 0.2 0.3 0.0 0.5 Mexico 2.7 21.4 0.7 4.4 27.6 1.2 -1.7 -6.2 -0.6 -0.1 -0.2 0.1 -0.2 Morocco 0.0 0.0 0.0 0.2 15.3 0.0 -0.2 -15.3 0.0 0.0 0.0 0.0 0.0 Peru 0.0 0.0 0.0 0.6 53.3 0.3 -0.6 -53.3 -0.3 -0.2 0.0 0.0 -0.2 Philippines 0.4 48.3 0.2 0.5 35.5 0.2 0.0 12.8 0.0 0.0 0.1 0.0 0.1 Poland 1.4 1.6 0.1 1.4 15.9 0.3 0.0 -14.2 -0.2 0.0 -0.2 0.0 -0.2 Russia 4.6 7.2 0.5 6.4 19.4 1.1 -1.8 -12.2 -0.6 0.2 -0.6 0.1 -0.4 South Africa 9.4 27.6 2.6 7.2 34.2 2.5 2.1 -6.6 0.0 0.3 -0.4 -0.2 -0.2 South Korea 17.2 16.5 2.4 13.3 27.2 3.1 4.0 -10.7 -0.7 0.4 -1.3 -0.5 -1.4 Taiwan 11.4 21.0 1.9 10.9 22.7 2.0 0.5 -1.8 -0.2 0.0 -0.2 0.0 -0.1 Tanzania 0.5 11.1 0.1 0.0 0.0 0.0 0.5 11.1 0.1 0.0 0.0 0.0 0.0 Thailand 2.5 67.8 1.5 1.5 56.3 0.8 1.0 11.5 0.8 0.4 0.1 0.1 0.7 Turkey 1.5 23.0 0.6 1.7 21.2 0.4 -0.2 1.7 0.2 0.2 0.0 0.0 0.3 Ukraine 0.2 9.9 0.1 0.0 0.0 0.0 0.2 9.9 0.1 0.0 0.0 0.0 0.0 UAE 0.1 -7.3 0.0 0.0 0.0 0.0 0.1 -7.3 0.0 0.0 0.0 0.0 0.0 Total 100.0% 18.2% 18.2% 100.0% 19.2% 19.2% 0.0% -1.0% -1.0% 1.5% -2.5% 0.0% -1.0%

*Representative institutional account - Where applicable, excludes cash, ETFs and futures 34 Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. There may be material differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information based on the representative account should not necessarily be relied upon. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Country weights are subject to change without notice. LADWP 3/9/11 Emerging Markets Value Equity: Sector Attribution*

January 1, 2010 – December 31, 2010

Emerging Markets Value MSCI EM Variance Attribution Analysis

Average Average Relative Percent Sector Return by Percent Sector Return by Percent Weight Excess Contribution Allocation Selection Interaction Total Sector Weight Sector Contribution Weight Sector Contribution vs. Index Return vs. Index Effect Effect Effect Effect

Consumer Discretionary 6.4% 27.7% 1.3% 6.1% 32.9% 2.1% 0.3% -5.1% -0.8% 0.1% -0.3% -0.4% -0.5% Consumer Staples 4.1 18.5 0.7 6.5 29.7 2.1 -2.5 -11.2 -1.4 -0.2 -0.7 0.2 -0.8 Energy 15.3 9.9 1.8 14.2 10.5 1.4 1.1 -0.6 0.4 0.0 0.0 -0.1 -0.1 Financials 22.8 28.6 6.5 25.1 17.3 4.8 -2.2 11.3 1.6 0.0 2.5 -0.2 2.4 Health Care 1.8 17.0 0.3 1.4 27.0 0.2 0.4 -9.9 0.1 0.0 -0.3 0.1 -0.2 Industrials 6.8 26.2 1.8 6.8 29.8 2.0 0.0 -3.6 -0.1 0.1 -0.2 0.0 -0.1 Information Technology 14.0 11.4 1.8 13.2 16.6 1.5 0.7 -5.2 0.2 0.3 -0.6 -0.1 -0.5 Materials 12.3 13.9 1.7 14.7 23.1 3.3 -2.4 -9.2 -1.6 0.0 -1.3 0.2 -1.1 Telecomm. Services 11.9 15.4 2.0 8.3 15.0 1.4 3.5 0.4 0.6 -0.1 0.0 0.0 -0.1 Utilities 4.6 7.3 0.2 3.6 8.4 0.3 1.0 -1.1 -0.1 -0.1 0.0 0.0 -0.1 Total 100.0% 18.2% 18.2% 100.0% 19.2% 19.2% 0.0% -1.0% -1.0% 0.1% -0.8% -0.2% -1.0%

*Representative institutional account - Where applicable, excludes cash, ETFs and futures 35 Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. There may be material differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information based on the representative account should not necessarily be relied upon. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Sector weights are subject to change without notice. LADWP 3/9/11 Emerging Markets Value Equity: Performance Attribution Analysis*

Individual Stock Contributors to Equity Return — January 1, 2010 – December 31, 2010

Emerging Markets Value MSCI EM

Percent Stock Ending Percent Stock Ending Added Value Contribution Return Weight Added Value Contribution Return Weight Cia Vale do Rio Doce Ord Sh 0.7% 19.4% 1.4% Novolipetsk Steel OJSC 2.4% 66.3% 0.0% Malayan Banking Bhd 0.7 44.4 0.8 Novatek 0.6 80.2 0.0 State Bank of India 0.6 30.8 1.5 CNOOC Ltd. 0.5 55.5 1.1 Co. Ltd. 0.6 23.8 2.2 HTC Corp. 0.5 196.0 0.5 Kasikornbank PCL 0.5 67.9 0.7 Cia Vale do Rio Doce Pfd Sh -A- 0.4 23.1 1.5 Gazprom OAO 0.5 6.5 2.9 America Movil S.A.B. de C.V. 0.4 23.2 1.5 Cosco Pacific Ltd. 0.5 40.5 0.2 Samsung Electronics Co. Ltd. 0.4 23.8 2.4 Itau Unibanco Banco Multiplo SA 0.4 10.7 1.4 Taiwan Semiconductor Manuf. 0.3 26.8 1.5 Bank of India 0.4 24.4 0.6 Infosys Technologies Ltd. 0.3 40.4 0.9 PTT PCL 0.4 49.0 0.5 MTN Group Ltd. 0.3 30.6 0.9

5.3% 12.2% 6.1% 10.3%

Percent Stock Ending Percent Stock Ending Subtracted Value Contribution Return Weight Subtracted Value Contribution Return Weight Petrobras Petroleo Brasileiro -0.4% -19.1% 4.3% Petrobras Petroleo Brasileiro -0.4% -19.1% 3.2% Fuqi International Inc. -0.4 -61.9 0.0 POSCO -0.3 -17.8 0.7 Renhe Commercial Holdings Co. -0.2 -17.9 0.9 China Life Insurance Co. (China) -0.2 -15.6 0.8 Tong Yang Life Insurance Co. Ltd. -0.2 -12.6 0.7 Hon Hai Precision Industry Co. Ltd. -0.2 -3.3 0.9 Redecard S/A -0.1 -17.7 0.9 MediaTek Inc. -0.1 -12.9 0.3 Global Bio-Chem Tech. Group -0.1 -28.8 0.5 China Shenhua Energy Co. Ltd. -0.1 -12.7 0.4 Nongshim Co. Ltd. -0.1 -14.7 0.8 Rosneft -0.1 -12.9 0.3 POSCO -0.1 -17.8 1.3 AU Optronics Corp. -0.1 -14.3 0.2 China Power International Devel. -0.1 -16.1 0.4 Gerdau S.A. -0.1 -17.0 0.2 Mahanagar Telephone Nigam Ltd. -0.1 -22.3 0.3 Industrial & Comm. Bank of China -0.1 -5.4 1.2

-1.8% 10.1% -1.7% 8.2%

*Representative institutional account - Where applicable, excludes cash, ETFs and futures Stock returns represent in-portfolio holdings. Performance history of less than two years may not provide an adequate basis from which to determine the performance 36 of a strategy. Past performance of such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. There may be material differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information based on the representative account should not necessarily be relied upon. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time that you receive this report. A full list of holdings is available upon request. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11

Country Weights and Portfolio Structure

37 LADWP 3/9/11 Emerging Markets Value Equity: Country Weights*

As of December 31, 2010

Europe Emerging Markets Value MSCI EM Czech Republic 0.0% 0.3% Hungary 0.3 0.4 Poland 1.5 1.6 Russia 5.4 6.4 Turkey 1.1 1.5 Asia/Pacific Ukraine 0.3 0.0 Emerging Markets Value MSCI EM Total 8.6% 10.2% China 17.6% 17.2% Hong Kong 0.6 0.0 India 9.3 8.0 Indonesia 1.2 2.3 Latin America Malaysia 2.6 2.8 Philippines 0.5 0.5 Emerging Markets Middle East/Africa South Korea 17.0 13.8 Value MSCI EM Emerging Markets Taiwan 11.4 11.5 Brazil 16.5% 15.8% Value MSCI EM Thailand 1.9 1.7 Chile 0.0 1.7 Egypt 0.0% 0.5% Colombia 0.0 0.8 Total 62.1% 57.8% Israel 0.2 0.0 Mexico 1.6 4.5 Morocco 0.0 0.2 Peru 0.0 0.7 South Africa 9.6 7.8 Total 18.1% 23.5% Tanzania 1.0 0.0 UAE 0.4 0.0

Total 11.2% 8.5%

*Representative institutional account - Where applicable, excludes cash, ETFs and futures 38 The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. There may be material differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information based on the representative account should not necessarily be relied upon. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 Emerging Markets Value Equity: Portfolio Structure*

As of December 31, 2010

Top Ten Active Weights Economic Sector Weights (%)

Company Country Sector EM Value MSCI EM Consumer 6 Discretionary 7 Standard Bank Group Ltd. South Africa Financials 2.2 0.5 State Bank of India India Financials 1.5 0.1 Consumer 5 Bharti Airtel Ltd. India Telecomm. Services 1.3 0.0 Staples 7 KB Financial Group Inc. South Korea Financials 1.6 0.4 17 PetroChina Co. Ltd. China Energy 1.9 0.7 Energy 14 Gazprom OAO Russia Energy 2.9 1.7 Quanta Computer Inc. Taiwan Info. Technology 1.3 0.1 24 Financials Petrobras Petroleo Brasileiro Brazil Energy 4.3 3.2 25 Reliance Industries Ltd. India Energy 1.8 0.8 2 VimpelCom Ltd. ADS Russia Telecomm. Services 1.0 0.0 Health Care 1

Total 19.8% 7.5% 5 Industrials 7 Characteristics Information 15 Technology 13

Emerging Markets Value MSCI EM 11 Materials 15 Price/Earnings Ratio 9.8x 11.7x Telecommunication 11 Price/Book Value Ratio 1.4x 2.1x Services 7 Dividend Yield 2.5% 2.1% 5 Wtd. Avg. Market Cap $40.1B $61.5B Utilities 3 Number of Holdings 148 802 0 5 10 15 20 25 30 Emerging Markets Value MSCI EM

*Representative institutional account - Where applicable, excludes cash, ETFs and futures The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important 39 disclosures. There may be material differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information based on the representative account should not necessarily be relied upon. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time that you receive this report. A full list of holdings is available upon request. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11

Portfolio Holdings, Fees & Disclosures

40 LADWP 3/9/11 Emerging Markets Value Equity: Portfolio Holdings* by Country

As of December 31, 2010

Latin America 18.1% China (continued) South Korea 17.0% Europe 8.6% Guangzhou Automobile Group Co. Ltd. 0.5 CJ CheilJedang Corp. 0.5 Brazil 16.5% Huaneng Power International Inc. 0.7 Grand Korea Leisure Co. Ltd. 0.7 Hungary 0.3% Banco Santander Brazil Unit 1.2 Industrial & Commercial Bank of China Ltd. 2.0 Hite Brewery Co. Ltd. 0.5 MOL Hungarian Oil and Gas Plc 0.3 Brasil Telecom S/A 0.2 Ju Teng International Holdings Ltd. 0.0 Hyundai Development Co. 0.7 Cia Vale do Rio Doce Ord Sh 1.4 Lumena Resources Corp. 0.2 Jinro Ltd. 0.2 Poland 1.5% Cielo S/A 0.7 Maanshan Iron & Steel Co. Ltd. 0.3 KB Financial Group Inc. 1.6 Asseco Poland S.A. 0.7 Companhia de Saneamento de Minas Gerais 0.8 Perfect World Co. Ltd. 0.4 Korea Electric Power Corp. 0.6 Bank Polska Kasa Opieki S.A. 0.3 Companhia de Tecidos Norte de Minas-Cote 0.2 PetroChina Co. Ltd. 1.9 Korea Exchange Bank 1.0 Telekomunikacja Polska S.A. 0.5 Companhia Energetica de Minas Gerais-CEMIG 0.9 Renhe Commercial Holdings Co. Ltd. 0.9 Korean Reinsurance Co. Ltd. 0.4 Eletrobras SA 0.3 Shanda Games Ltd. ADS 0.0 KT Corp. 0.4 Russia 5.4% Embraer S.A. 0.2 Sinotrans Ltd. 0.5 KT&G Corp. 0.7 Gazprom OAO 2.9 Fibria Celulose S.A. 0.3 TPV Technology Ltd. 0.2 LG Electronics Inc. 0.7 Lukoil Holdings 1.0 Gerdau S.A. 0.8 Weiqiao Textile Co. Ltd. 0.6 Lotte Chilsung Beverage Co. Ltd. 0.2 Rosneft 0.5 Grendene S/A 0.3 Nongshim Co. Ltd. 0.8 VimpelCom Ltd. ADS 1.0 Itau Unibanco Banco Multiplo SA 1.5 POSCO 1.3 JBS S/A 0.9 Hong Kong 0.6% Samsung Electronics Co. Ltd. 2.3 Light S/A 0.6 NWS Holdings Ltd. 0.6 Samsung Fire & Marine Insurance Co. Ltd. 0.8 Turkey 1.1% Magnesita Refratarios S/A 0.0 Shinhan Financial Group Co. Ltd. 0.6 Turkcell Iletisim Hizmetleri A.S. 0.4 Petrobras Petroleo Brasileiro 4.3 Shinsegae Co. Ltd. 0.5 Porto Seguro S/A 0.3 India 9.3% Turkiye Is Bankasi A.S. 0.7 Bank of India 0.6 SK Chemicals Co. Ltd. 0.0 Redecard S/A 0.9 SK Telecom Co. Ltd. 1.1 Tele Norte Leste Participacoes S/A 0.6 Bharti Airtel Ltd. 1.3 Glenmark Pharmaceuticals Ltd. 0.4 Tong Yang Life Insurance Co. Ltd. 0.7 Ukraine 0.3% Yuhan Corp. 0.8 Hindustan Petroleum Corp. Ltd. 0.1 JKX Oil & Gas PLC 0.3 Mexico 1.6% India Cements Ltd. 1.0 Jubilant Life Sciences Ltd. 0.7 Taiwan 11.4% America Movil S.A.B. de C.V. 0.1 Asia Cement Corp. 0.5 Consorcio ARA S.A.B. de C.V. 0.3 Mahanagar Telephone Nigam Ltd. 0.3 MOIL Ltd. 0.0 ASUSTeK Computer Inc. 0.6 Middle East/Africa 11.2% Desarrolladora Homex S.A.B. de C.V. 0.5 AU Optronics Corp. 1.0 Grupo Continental S.A.B. 0.4 NMDC Ltd. 0.5 Patni Computer Systems Ltd. 0.4 Chinatrust Financial Holding Co. Ltd. 0.8 Israel 0.2% Grupo Simec S.A.B. de C.V. 0.0 First Financial Holding Co. Ltd. 0.5 Teva Pharmaceutical Industries Ltd. 0.2 Industrias CH S.A.B. de C.V. 0.2 Reliance Industries Ltd. 1.9 Rolta India Ltd. 0.6 Hon Hai Precision Industry Co. Ltd. 0.5 State Bank of India 1.5 KGI Securities Co. Ltd. 0.4 Nan Ya Printed Circuit Board Corp. 0.8 South Africa 9.6% Asia/Pacific 62.1% Indonesia 1.2% Powertech Technology Inc. 0.1 Anglo Platinum Ltd. 1.1 Quanta Computer Inc. 1.3 AngloGold Ashanti Ltd. 0.1 Indosat 0.4 ArcelorMittal South Africa Ltd. 0.4 International Nickel Indonesia 0.1 Siliconware Precision Industries Co. Ltd. 0.4 China 17.6% SinoPac Financial Holdings Co. Ltd. 1.0 Barloworld Ltd. 0.1 Asia Cement (China) Holdings Corp. 0.4 Medco Energi Internasional 0.3 JD Group Ltd. 0.7 Telekomunikasi Indonesia 0.4 Taiwan Semiconductor Manufacturing Co. Ltd. 1.4 Beijing Capital International Airport Co. Ltd. 0.8 Tatung Co. Ltd. 0.5 MTN Group Ltd. 0.8 BYD Electronic (International) Co. Ltd. 0.6 Malaysia 2.6% Transcend Information Inc. 0.6 Murray & Roberts Holdings Ltd. 1.0 China Coal Energy Co. Ltd. 0.5 United Microelectronics Corp. 1.1 Nampak Ltd. 0.1 China Communications Services Corp. Ltd. 0.3 Genting Malaysia Bhd 0.9 Nedbank Group Ltd. 0.9 China Construction Bank Corp. 0.8 Malayan Banking Bhd 0.9 Sappi Ltd. 0.4 China Dongxiang Group Co. Ltd. 0.6 Petronas Chemicals Group Bhd 0.3 Thailand 1.9% Sasol Ltd. 1.2 China Mobile Ltd. 1.9 Sime Darby Bhd 0.2 Standard Bank Group Ltd. 2.2 Tenaga Nasional Bhd 0.2 Bangkok Bank PCL 0.7 China Pacific Insurance (Group) Co. Ltd. 0.2 Kasikornbank PCL 0.7 Telkom S.A. Ltd. 0.4 China Petroleum & Chemical Corp. 0.7 PTT PCL 0.5 China Power International Development Ltd. 0.4 Philippines 0.5% Tanzania 1.0% China Railway Construction Corp. Ltd. 0.4 Bank of the Philippine Islands 0.5 African Barrick Gold PLC 1.0 China Railway Group Ltd. 0.7 China Shenhua Energy Co. Ltd. 0.5 United Arab Emirates 0.4% Cosco Pacific Ltd. 0.2 Emaar Properties PJSC 0.4 Global Bio-Chem Technology Group Co. Ltd. 0.5

*Representative institutional account - Where applicable, excludes cash, ETFs and futures 41 The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. There may be material differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information based on the representative account should not necessarily be relied upon. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time that you receive this report. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 Emerging Markets Value Equity: Portfolio Holdings* by Sector

As of December 31, 2010 Consumer Discretionary 5.6% Financials 23.9% Industrials 5.4% Materials (continued) China Dongxiang Group Co. Ltd. 0.6 Banco Santander Brazil Unit 1.2 Barloworld Ltd. 0.1 Grupo Simec S.A.B. de C.V. 0.0% Companhia de Tecidos Norte de Minas-Cote 0.2 Bangkok Bank PCL 0.7 Beijing Capital International Airport Co. Ltd. 0.8 India Cements Ltd. 1.0 Consorcio ARA S.A.B. de C.V. 0.3 Bank of India 0.6 China Railway Construction Corp. Ltd. 0.4 Industrias CH S.A.B. de C.V. 0.2 Desarrolladora Homex S.A.B. de C.V. 0.5 Bank of the Philippine Islands 0.5 China Railway Group Ltd. 0.7 International Nickel Indonesia 0.1 Genting Malaysia Bhd 0.9 Bank Polska Kasa Opieki S.A. 0.3 Cosco Pacific Ltd. 0.2 Lumena Resources Corp. 0.2 Grand Korea Leisure Co. Ltd. 0.7 China Construction Bank Corp. 0.8 Embraer S.A. 0.2 Maanshan Iron & Steel Co. Ltd. 0.3 Grendene S/A 0.3 China Pacific Insurance (Group) Co. Ltd. 0.2 Hyundai Development Co. 0.7 Magnesita Refratarios S/A 0.0 Guangzhou Automobile Group Co. Ltd. 0.5 Chinatrust Financial Holding Co. Ltd. 0.8 Murray & Roberts Holdings Ltd. 1.0 MOIL Ltd. 0.0 JD Group Ltd. 0.7 Emaar Properties PJSC 0.4 NWS Holdings Ltd 0.6 Nampak Ltd. 0.1 Weiqiao Textile Co. Ltd. 0.6 First Financial Holding Co. Ltd. 0.5 Sime Darby Bhd 0.2 NMDC Ltd. 0.5 Industrial & Commercial Bank of China Ltd. 2.0 Sinotrans Ltd. 0.5 Petronas Chemicals Group Bhd 0.3 Consumer Staples 4.6% Itau Unibanco Banco Multiplo SA 1.5 POSCO 1.3 Kasikornbank PCL 0.7 Sappi Ltd. 0.4 CJ CheilJedang Corp. 0.5 Information Technology 15.3% KB Financial Group Inc. 1.6 SK Chemicals Co. Ltd. 0.0 Grupo Continental S.A.B. 0.4 KGI Securities Co. Ltd. 0.4 Asseco Poland S.A. 0.7 Hite Brewery Co. Ltd. 0.5 Korea Exchange Bank 1.0 ASUSTeK Computer Inc. 0.6 Telecommunication JBS S/A 0.9 Korean Reinsurance Co. Ltd. 0.4 AU Optronics Corp. 1.0 Jinro Ltd. 0.2 Malayan Banking Bhd 0.9 BYD Electronic (International) Co. Ltd. 0.6 Services 10.9% KT&G Corp. 0.7 Nedbank Group Ltd. 0.9 Cielo S/A 0.7 America Movil S.A.B. de C.V. 0.1 Lotte Chilsung Beverage Co. Ltd. 0.2 Porto Seguro S/A 0.3 Hon Hai Precision Industry Co. Ltd. 0.5 Bharti Airtel Ltd. 1.3 Nongshim Co. Ltd. 0.8 Renhe Commercial Holdings Co. Ltd. 0.9 Ju Teng International Holdings Ltd. 0.0 Brasil Telecom S/A 0.2 Shinsegae Co. Ltd. 0.5 Samsung Fire & Marine Insurance Co. Ltd. 0.8 LG Electronics Inc. 0.7 China Communications Services Corp. Ltd. 0.3 Shinhan Financial Group Co. Ltd. 0.6 Nan Ya Printed Circuit Board Corp. 0.8 China Mobile Ltd. 1.9 Energy 16.7% SinoPac Financial Holdings Co. Ltd. 1.0 Patni Computer Systems Ltd. 0.4 Indosat 0.4 China Coal Energy Co. Ltd. 0.5 Standard Bank Group Ltd. 2.2 Perfect World Co. Ltd. 0.4 KT Corp. 0.4 China Petroleum & Chemical Corp. 0.7 State Bank of India 1.5 Powertech Technology Inc. 0.1 Mahanagar Telephone Nigam Ltd. 0.3 China Shenhua Energy Co. Ltd. 0.5 Tong Yang Life Insurance Co. Ltd. 0.7 Quanta Computer Inc. 1.3 MTN Group Ltd. 0.8 Gazprom OAO 2.9 Turkiye Is Bankasi A.S. 0.7 Redecard S/A 0.9 SK Telecom Co. Ltd. 1.1 Hindustan Petroleum Corp. Ltd. 0.1 Rolta India Ltd. 0.6 Tatung Co. Ltd. 0.5 JKX Oil & Gas PLC 0.3 Health Care 2.0% Samsung Electronics Co. Ltd. 2.3 Tele Norte Leste Participacoes S/A 0.6 Lukoil Holdings 1.0 Shanda Games Ltd. ADS 0.0 Telekomunikacja Polska S.A. 0.5 Medco Energi Internasional 0.3 Glenmark Pharmaceuticals Ltd. 0.4 Siliconware Precision Industries Co. Ltd. 0.4 Telekomunikasi Indonesia 0.4 MOL Hungarian Oil and Gas Plc 0.3 Jubilant Life Sciences Ltd. 0.7 Taiwan Semiconductor Manufacturing Co. Ltd. 1.4 Telkom S.A. Ltd. 0.4 Petrobras Petroleo Brasileiro 4.3 Teva Pharmaceutical Industries Ltd. 0.2 TPV Technology Ltd. 0.2 Turkcell Iletisim Hizmetleri A.S. 0.4 PetroChina Co. Ltd. 1.9 Yuhan Corp. 0.8 Transcend Information Inc. 0.6 VimpelCom Ltd. ADS 1.0 PTT PCL 0.5 United Microelectronics Corp. 1.1 Reliance Industries Ltd. 1.9 Utilities 4.5% Materials 11.1% Rosneft 0.5 China Power International Development Ltd. 0.4 African Barrick Gold PLC 1.0 Sasol Ltd. 1.2 Companhia de Saneamento de Minas Gerais 0.8 Anglo Platinum Ltd. 1.1 Companhia Energetica de Minas Gerais 0.9 AngloGold Ashanti Ltd. 0.1 Eletrobras SA 0.3 ArcelorMittal South Africa Ltd. 0.4 Huaneng Power International Inc. 0.7 Asia Cement (China) Holdings Corp. 0.4 Korea Electric Power Corp. 0.5 Asia Cement Corp. 0.5 Light S/A 0.6 Cia Vale do Rio Doce Ord Sh 1.4 Tenaga Nasional Bhd 0.2 Fibria Celulose S.A. 0.3 Gerdau S.A. 0.8 Global Bio-Chem Technology Group Co. Ltd. 0.5

*Representative institutional account - Where applicable, excludes cash, ETFs and futures 42 The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. There may be material differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information based on the representative account should not necessarily be relied upon. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time that you receive this report. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 3/9/11 LADWP Fee Schedule

90 Basis Points on the First $25 Million

80 Basis Points Thereafter

43 LADWP 3/9/11 Emerging Markets Value Equity: Disclosure

44 LADWP 3/9/11 Emerging Markets Value Equity: Disclosure

45 LADWP 3/9/11 Emerging Markets Value Equity: Disclosure

46

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