Item No. 6: Annual Presentation by BlackRock Institutional Trust Co. – Domestic Large-Cap Core Equity Manager (March 10, 2021, Regular Retirement Board Meeting)
INVESTMENT MANAGER SUMMARY
MANAGEMENT Firm Name BlackRock Institutional Manager Tenure with Fund 17.5 Years Investment Strategy/Vehicle Large-Cap Core Equity Contract Expiration 07/31/2022
ASSETS Total Firm AUM (12/31/2020) $8.67 Trillion Total Firm Assets in Strategy (12/31/2020) $93.75 Billion Total Assets Managed for WPERP (01/31/2021) RP - $1.17 Billion HP - $206.2 Million
PERFORMANCE As of 01/31/2021 1 Year 3 Year 5 Year Inception Blackrock LCC (gross) 19.79% 12.44% 16.67% 10.32% Blackrock LCC (est. net) 19.79% 12.44% 16.67% 10.27% Russell 1000 Index 19.84% 12.48% 16.69% 10.28% Difference (net of fees) -0.05% -0.04% -0.02% -0.01%
Fees Schedule 1 basis point on the first $500 million 0.75 basis points on the balance Current Blended Fee 0.84 basis points
WATCH STATUS N/A
6 March 2021
October 2020
Water and Power Employees’ Retirement Plan Russell 1000 Index Fund Portfolio Review
FOR USE WITH ELIGIBLE INSTITUTIONAL INVESTORS IN A ONE-ON-ONE COMMUNICATION – PROPRIETARY AND CONFIDENTIAL Table of contents
I. BlackRock Update II. ETF & Index Investments Update III. Market Overview IV. Russell 1000 Index Fund Portfolio Review i. Performance & Attribution Overview ii. Portfolio Characteristics V. Fee Schedule VI. Appendix i. Presenter Biographies ii. BlackRock Relationship Management Team iii. Disclosures
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 2 I. BlackRock Update
FORFOR USE USE WITH WITH WATER WATER AND AND POWER POWER EMPLOYEES’ EMPLOYEES’ RETIREMENT RETIREMENT PLAN PLAN ONLY ONLY BlackRock at a glance
BlackRock Purpose Statement
We help more and more people experience financial well-being
BlackRock facts $8.67 trillion managed across asset classes
• Established in 1988 • NYSE: BLK Passive Fixed Income • $8.67 trillion assets under management Active Fixed 1.6 tn • Over 16,000 employees Income Multi-Asset 658 bn • Over 2,400 investment professionals 1.0 tn Cash Management • Offices in over 35 countries Alternatives¹ 666 bn • 25 primary investment centers globally 235 bn Advisory 22 bn • Clients in over 100 countries Active Equity • Over 850 iShares® ETFs Globally 410 bn • Through BlackRock Solutions, the Firm provides risk management and enterprise investment services for over 200 clients Passive • Financial Markets Advisory business managed or advised on Equity over $8 trillion in asset and derivative portfolios 4.0 tn
• Transition Management team partners with clients to save Assets as of 31 December 2020 costs and reduce risks when changing investment exposures 1 Includes commodity and currency mandates
Source: BlackRock. As of 31 December 2020. All figures are represented in USD.
ICBM0419U-797274-1/2 4 We have a history of innovating to continually address clients’ needs.
30+ years ago 20 years ago 10 years ago Last 5 years Today
Founded as a Created the industry’s Expanded our product Enhanced our Entrusted to manage fixed income manager first target date fund, offerings to provide capabilities around more assets than any and introduced the helping millions clients more choice whole portfolio other asset manager first risk-managed of people prepare through landmark solutions by launching in the world. fixed income for their retirement. acquisitions of an OCIO platform solutions. MLIM and BGI*. and expanding our Introduced portfolio construction $8.6tn Pioneered index and iShares® ETFs, Launched Financial advisory services. AUM quantitative investing democratizing Markets Advisory to help simplify investing. business to help Introduced investing. solve the complex sustainability as a 16,000 financial challenges central part of how Employees Developed our of governments, we invest, integrating risk and portfolio central banks, and ESG throughout our construction financial institutions. active investment 100 technology, Aladdin®, platform. Countries with making investing BlackRock clients more transparent. Set a new standard in transparency for alternatives through 35 eFront acquisition, Countries with extending Aladdin’s® BlackRock offices capabilities to provide whole portfolio analysis.
Data as of 31 December 2020. All figures are represented in USD. Timeline includes history from predecessor entities. *Merrill Lynch Investment Managers and Barclays Global Investors.
ICBH0121U/S-1479221-4/10 5 BlackRock Corporate Governance
BlackRock is a public company • Established in 1988 and public since 1999 (NYSE: BLK) Independent ownership structure • Board composed of 16 Directors: 14 independents, 2 BlackRock
Board of Directors Global Executive Committee (GEC)
Laurence Fink Chairman & Chief Executive Officer Robert Kapito President Bader M. Alsaad* Sandy Boss Global Head of Investment Stewardship Mathis Cabiallavetta* Geraldine Buckingham Head of Asia Pacific Pamela Daley* Edwin Conway Global Head of BlackRock Alternative Investors Frank Cooper III Chief Marketing Officer Jessica Einhorn* Robert Fairbairn Vice Chairman Laurence D. Fink Rob Goldstein Chief Operating Officer & Head of BlackRock Solutions William E. Ford* Ben Golub Chief Risk Officer Fabrizio Freda * Philipp Hildebrand Vice Chairman Murry S. Gerber* Richard Kushel Head of the Portfolio Management Group Cheryl Mills* Rachel Lord Head of Europe, Middle East & Africa Mark McCombe Chief Client Officer Gordon M. Nixon* Christopher Meade Chief Legal Officer Margaret L. Johnson* Manish Mehta Global Head of Human Resources Robert S. Kapito Sudhir Nair Global Head of the Aladdin Business Charles H. Robbins* Barbara Novick Vice Chairman Marco Antonio Slim Domit* Salim Ramji Global Head of iShares & Index Investments Gary Shedlin Chief Financial Officer Susan L. Wagner* Martin Small Head of U.S. Wealth Advisory Mark Wilson* Derek Stein Head of Technology & Operations * Independent Mark Wiedman Head of International & Corporate Strategy As of 31 Jan 2021
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 6 II. ETF & Index Investments Update
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY BlackRock’s Index Equity Platform: Global leader in Index Equity assets1
Focus on consistent performance with efficient outcomes for clients • Thousands of skillful and thoughtful decisions made annually in each portfolio in seeking to achieve the precise performance clients demand Extensive and flexible platform for index strategies • Over 2,500 funds managed against 900+ benchmarks, including: factors, ESG, liquidity strategies and index plus Sophisticated technology and risk management • The Aladdin® platform seamlessly integrates the capabilities of our dedicated portfolio management, research, trading and risk management teams
Total indexed assets of Distribution of assets by $5.62 trillion 2020 vehicle type in 2020
5,000 Other 1,587 Collective 1,340 2.4% 4,000 1,040 Trust Funds 1,093 18.1%
3,000 822 764 702
644 Exchange AUM$bn 2,000 4,034 Traded 3,408 3,514 Funds 3,051 2,657 45.1% 2,374 2,370 1,000 2,166
0 2013 2014 2015 2016 2017 2018 2019 2020 Separate Accounts Equity & Commodities Fixed Income 34.4%
Source: BlackRock as of 31 December 2020 1 In terms of AUM. Source: Pensions & Investments
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-3/43 8 50 years of experience driving index forward
Creating solutions so our clients have access to high quality index exposures • Drive the industry forward through our ability to create specialized, innovative investments afforded by our scale & depth of expertise • Forge new ground for clients — a history of being first to market with new investment ideas • Evolve capabilities to continuously deliver on emerging trends — smart beta, global benchmarking, overlay strategies • Serve as an index advocate on behalf of asset owners and act a key partner to index providers seeking our practitioner knowledge
50 years of Index Equity — Continual evolution of products, technology and capabilities
$5T World Equity Triple A: iShares Exchange-Traded Eliminated dividend EAFE Frontier Minimum Volatility "Aladdinization" of the Index pioneer Defined contribution Emerging Market Benchmark asset allocation Funds flipping Index Plus Markets ETFs index platform and innovator capabilities Equity Index Shares (WEBS) PM tool Journey Risk model First Global Credit Fundamentally weighted Passive Long Duration enhancements Screened Smart Beta strategies Management launched Strategy ESG fund series $4T Launch of Smart Beta BlackRock Index Fixed Income AUM BlackRock Index Equity AUM Risk Strategy
$3T 1971
First synthetic long duration funds Factor ETFs Fund of fund EM Directed Aladdin Awarded Treasury structures FX Migration Mandate for Mortgage Launch of Impact Bond Market Stabilization T-2 for Daily Currency Strategy First Fixed Income Program International $2T EAFE Equity openings for Hedged Index Russell Index Funds Investment strategy all funds EAFE iShares ETFs Analysis: ETFs $10T Initiative Small index portfolio management Emerging Securities Cap Equity and currency First 401(k) tool Markets First 20+ Lending hedging Target Date Small Cap STRIPS Index Fund (LifePath)) Fund Launched
$1T 1971 1981 1989 1990 1991 1993 1996 1997 1998 1999 2000 2001 2002 2003 2005 2007 2008 2009 2010 2011 2013 2015 2017 2019 2021 YTD
AUM as of 31 December 2020
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-6/43 9 Investments Pillar
ETF and Index Investments Business
Salim Ramji Patrick Olson Global Head of iShares and Index Investments Chief Product Officer
Investments Pillar
Samara Cohen & Alan Mason Global Co-Heads of Investments, Products, and Markets
Americas Portfolio Engineering Leadership
Americas Portfolio Global CIO Global COO Global Platform Global Research Global Strategy Engineering
Rachel Aguirre & Amy Whitelaw Jennifer Hsui Karen Kraut* Rajesh Nagella Ananth Madhavan Jessica Irschick Co-Heads of Americas Global Index Equity CIO Global EII Markets & Global Head of EII Investment Global Head of EII Research Global Head of Index Product Portfolio Engineering Investments COO Process & Platform Strategy
Business Portfolio Engineering Index Research Platform Research Strategy Management
Developed ex-U.S. Emerging U.S. + 9 Index + 6 Business + 4 Platform + 40 Research Americas Institutional Institutional Institutional Researchers Managers Engineers Officers Peter Sietsema, CFA Matt Waldron, CFA Marsha Jong, CFA Scott Dohemann, CFA Head of U.S. Product Strategy + 5 Portfolio + 5 Portfolio + 4 Portfolio Engineers Engineers Engineers Emily Foote, CFA Christian De Leon Developed ex-U.S. ETF Emerging ETF U.S. ETF Jacqueline Ramkumar Steven White Mike Gallagher, CFA Mariela Jobson Niyati Mohan, CFA + 4 Portfolio + 4 Portfolio + 4 Portfolio Adriel Ramirez Engineers Engineers Engineers Eric Nemeth Index Asset Allocation Index Plus Canada Greg Savage, CFA Creighton Jue, CFA Neil Vassar EMEA + 6 Strategists + 6 Portfolio + 5 Portfolio + 4 Portfolio Engineers Engineers Engineers APAC + 4 Strategists FX & Synthetics Sub-Advised Orlando Montalvo Suzanne Henige, CFA* + 3 Portfolio + 4 Portfolio Engineers Engineers
As of 31 December 2020. *Asterix indicates location in Atlanta (total EII team of fourteen investment professionals stationed inAtlanta)
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-9/43 10 Focus on efficient performance outcomes Supported by proprietary Aladdin® technology
• BlackRock’s disciplined index portfolio management is focused on optimally balancing return, risk and cost in seeking to deliver effective outcomes to clients • Our portfolio managers specialize in financial markets, supported by BlackRock’s extensive global trading platform and market leading analytics, to provide a high-quality index experience
Total Performance Management
Return Risk Cost
Supported by Aladdin Technology
What is Aladdin® ? Aladdin® helps solve investing challenges:
• A sophisticated operating system that connects • Technology does the ‘heavy-lifting’, enabling portfolio information, people and technology to support the managers to focus on key drivers affecting portfolio return entire investment lifecycle • Offers process scalability and efficiency • Includes consistency across product types and functions
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-13/4311 Index Investment Management Cycle – dedicated expertise and resources
Performance & Oversight Benchmark Knowledge
• Review cumulative effect of investment • Detailed knowledge of index decisions to help identify factors methodologies contributing to/detracting from portfolio • Experience with predicting and performance projecting index changes • Risk & Quantitative Analysis Team (RQA) • Focused on optimal treatment of monitors dozens of risk factors globally on a continuous basis corporate actions • Continual research into index events • Aladdin Advantage: Portfolio Management tools are integrated on the • Aladdin Advantage: Proprietary Aladdin same platform as risk monitoring tools, ® ‘Index Pro’ application makes analyzing making it easy for RQA to provide a ALADDIN : benchmark changes a clean and third-party risk assessment on portfolios One central platform efficient process for all processes
Efficient Trading Portfolio Construction
• Global trading infrastructure allows for real • Significant investment in technology time oversight of all trades in all regions • Market leading portfolio and risk tools • Smart trading strategies are designed to provided by our Aladdin® platform access optimal liquidity • Integrated cost, risk, and liquidity • Industry’s largest internal marketplace for analysis potential netting of client flows • Access to sophisticated optimization tools • Focused trading research and systems • Aladdin Advantage: Custom ‘Portfolio • Aladdin Advantage: Extensive global Construction’ application built by our trading platform helps ensure low costs Portfolio Management Team designed and optimal access to liquidity specially for index management
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-14/4312 Highlights from recent index rebalances
FTSE/Russell/SPDJ MSCI November 2020 rebalance highlights December 2020 rebalance highlights
Overall the EII Team executed 147k orders worth For the FTSE/Russell and S&P Dow Jones indexes, the EII approximately $109 billion Team executed 95k orders worth approximately $110 billion • 765 MSCI funds were traded globally representing total AUM of • 668 funds were traded globally representing total AUM of approximately $1.9 trillion approximately $2.9 trillion • Trade size was about 35% larger that last November’s MSCI • The overall trade size was approximately 31% greater than December rebalance which is the 2nd largest in EII’s history 2019. This slightly exceeded the previous all time high from the MSCI November rebalance • Kuwait was promoted to Emerging Markets with a weight of • The S&P index family represented 59% of the estimated value at approximately ~52bps (postponed from May due to market concerns $65B. This was driven by the addition of Tesla and the annual style stemming from COVID-19) index rebalances. S&P Dow Jones added Tesla to the S&P 500 Index • India was the biggest net buy with $2.4B as a result of changes to in one tranche at a weight of 158 bps foreign ownership limits • This rebalance included the deletions of Chinese securities affected • Completed approximately 99% by effective date and crossed 23% by the US Executive Order in the FTSE GEIS and SPDJ index families (see Notes below) • NASDAQ migrated to the Industry Classification Benchmark (ICB) for the NASDAQ 100 Index and the NASDAQ Biotechnology Index. The iShares Nasdaq Biotechnology ETF trade was about $3.0B, with a two way turnover of approximately 29% Russell Reconstitution 2020 highlights
Overall the EII Team executed 108k orders worth approximately $85.4 billion Other Index Provider Notes • The overall trade size was approximately 20% greater than June 2019 driven by market volatility • In November 2020, the U.S. White House announced an executive order banning U.S. individuals or entities from investing in • Crossed approximately 49% of activity companies deemed to have links to China’s military • The R1000 and R2000 buys underperformed their respective indices, • BlackRock is taking the necessary actions to follow benchmarks and while the R1000 and R2000 sells outperformed to ensure compliance with applicable laws and regulations
Source: BlackRock and MSCI, FTSE Russell, Morningstar, and S&P Dow Jones as of December 2020. Past performance is not indicat ive of future results
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-23/4313 MSCI market classification summary
In 2020, MSCI implemented the reclassification of Kuwait to their Emerging markets universe. In 2021, MSCI will reclassify Iceland to Frontier and consult regarding the status of Argentina and Turkey.
MSCI has reclassified Kuwait from Frontier to Emerging Market status. Kuwait represents approximately 0.49% in Kuwait the EM benchmark (as of Dec. 31st), and was added with a 100% inclusion factor. This reclassification was completed at the November 2020 rebalance.
MSCI is reclassifying Iceland from Standalone Markets to Frontier status. Iceland will represent approximately Iceland 5.24% in the Frontier benchmark (excluding Kuwait), and will be added with a 100% inclusion factor in May 2021.
MSCI will continue consulting with market participants on the reclassification of Argentina from Emerging to either Frontier or Standalone Markets status. Argentina currently represents approximately 0.12% in the EM benchmark Argentina (as of Dec. 31st). The imposition of capital controls are not in line with market accessibility of MSCI Indices. Any events that further deteriorate the accessibility will prompt MSCI to remove the MSCI Argentina Indexes from Emerging Markets as soon as practicable.
MSCI will consult with market participants on the reclassification of Turkey from Emerging to either Frontier or Standalone Markets status. Turkey currently represents approximately 0.37% in the EM benchmark (as of Dec. 31st). Turkey Deteriorating accessibility levels of the Turkey equity market have been impacted by the introduction of short selling and stock lending bans. These bans severely restrict the ability of institutional investors to express active investment views and hedge portfolio risk.
Source: MSCI and BlackRock as of 12/31/2020
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-24/4314 BlackRock’s scale can drive lower costs
The scale of BlackRock’s index platform can lower transaction costs in the following ways: • The size of our trading footprint allows us to negotiate low commission rates • The diversity of our client base, coupled with the range of indices we manage assets against, facilitates the industry’s largest internal market place for potential netting of client flows • Large seasoned funds may require less market trading for flows relative to small asset pools
BlackRock transaction costs vs. ex-ante estimates1
Average client cost in 2019, as of Dec 31, 2019
25 23 21 20 18 16 15 15 14 12 10 10 7 6 5 3 Transaction costs (bp) costs Transaction 2 2 2 .4 .4 0 Buy Sell Buy Sell Buy Sell Buy Sell S&P 500 MSCI EAFE MSCI ACWI ex-US IMI MSCI EM
Actual Client T-Cost T-Cost Estimate Pre Netting of Flows
1 Estimated transaction costs includes commissions and taxes based on BlackRock’s current standard negotiated rates Source: BlackRock. BlackRock Flagship Index Funds shown Historical transaction costs are not indicative of future results
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-29/4315 III. Market Overview
FORFOR USE USE WITH WITH WATER WATER AND AND POWER POWER EMPLOYEES’ EMPLOYEES’ RETIREMENT RETIREMENT PLAN PLAN ONLY ONLY Market Review Q4 2020
Overview U.S. markets reacted positively to the election results following a poor start to the quarter. U.S. equities, as The victory of Joe Biden came as an indicator of more stable internal and external policies. represented by the The fear of rising COVID-19 cases in the U.S. Russell 1000 Index, was offset by positive vaccine news and an announcement of a $900 billion stimulus in finished the quarter with late December supported the market’s positive performance, ultimately supporting positive strong positive market performance. performance of +13.7% Sectors that were severely impacted by the pandemic, such as Energy and Financials, over the fourth quarter. recovered following positive vaccine news in November, prompting these two sectors to recoup some of the losses incurred earlier in 2020.
17 IV. Russell 1000 Index Fund Portfolio Review
FORFOR USE USE WITH WITH WATER WATER AND AND POWER POWER EMPLOYEES’ EMPLOYEES’ RETIREMENT RETIREMENT PLAN PLAN ONLY ONLY i. Performance & Attribution Overview
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY Major sources of tracking error: Global & domestic index funds
Tax Reclaim Process
Securities Lending
Securities Litigation
Treatment of Corporate Actions Return
Optimization Enhances Return Enhances Treatment of Index Changes Performance Performance Post Notified Impact “Headwinds” “Tailwinds”
NAV Rounding Reduces Reduces Return
Reduces Return Reduces Futures Rolling Costs
Cash Balances
Transaction Costs
Custody Costs
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-26/4320 As of 31 Jan 2021 Water and Power Employees’ Retirement Plan Russell 1000 Index Fund Performance Overview
Our investment objective for the Water and Power Employees’ Retirement Plan is to replicate the risk and return of the Russell 1000 Index.
Water and Power Employees’ Retirement Plan: $1,169,020,799
Retiree Health Benefits Fund: $206,237,148
Time Period Fund (gross) Fund (net) Index Difference
Month-to-Date -0.82% -0.82% -0.82% 0.00%
3 Month-to-Date 15.54% 15.54% 15.54% 0.00%
Year-to-date -0.82% -0.82% -0.82% 0.00%
1 year 19.88% 19.87% 19.84% 0.03%
3 year 12.52% 12.51% 12.48% 0.02%
5 year 16.73% 16.72% 16.69% 0.03%
10 year 13.69% 13.67% 13.64% 0.03%
Since inception annualized 10.54% 10.53% 10.51% 0.02%
Source: BlackRock As of 31 Jan 2021 Benchmark is the Russell 1000 Index Inception Date: 08/07/2003. On 8/31/2010, LADWP redeemed out of the Large Cap Index Trust managed by BlackRock Investment Management, LLC and transitioned into the Russell 1000 Index Fund managed by BlackRock Institutional Trust, N.A
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 21 As of 31 Jan 2021 Water and Power Employees’ Retirement Plan Russell 1000 Index Fund Performance Overview
Fund (gross) 24% Fund (net) 20% Index 16% 12% 8% 4% 0% -4% Month-to-Date 3 Month-to-Date Year-to-date 1 year 3 year 5 year 10 year Since inception annualized
Time Period Fund (gross) Fund (net) Index Difference
Month-to-Date -0.82% -0.82% -0.82% 0.00%
3 Month-to-Date 15.54% 15.54% 15.54% 0.00%
Year-to-date -0.82% -0.82% -0.82% 0.00%
1 year 19.88% 19.87% 19.84% 0.03%
3 year 12.52% 12.51% 12.48% 0.02%
5 year 16.73% 16.72% 16.69% 0.03%
10 year 13.69% 13.67% 13.64% 0.03%
Since inception annualized 10.54% 10.53% 10.51% 0.02% Source: BlackRock As of 31 July 2020 Benchmark is the MSCI World ex-U.S. IMI Index Inception Date: 08/07/2003. On 8/31/2010, LADWP redeemed out of the Large Cap Index Trust managed by BlackRock Investment Management, LLC and transitioned into the Russell 1000 Index Fund managed by BlackRock Institutional Trust, N.A
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 22 As of 31 Jan 2021 Water and Power Employees’ Retirement Plan Russell 1000 Index Fund Performance Overview Our investment objective for the Water and Power Employees’ Retirement Plan is to replicate the risk and return of the Russell 1000 Index.
Water and Power Employees’ Retirement Plan: $1,169,020,799 Retiree Health Benefits Fund: $206,237,148 Time Period Fund (gross) Fund (net) Index Difference
2010 16.17% 16.16% 16.10% 0.06%
2011 1.56% 1.55% 1.50% 0.05%
2012 16.47% 16.46% 16.42% 0.04%
2013 33.14% 33.13% 33.11% 0.02%
2014 13.27% 13.26% 13.24% 0.02%
2015 0.96% 0.95% 0.92% 0.04%
2016 12.12% 12.11% 12.05% 0.06%
2017 21.71% 21.70% 21.69% 0.01%
2018 -4.75% -4.76% -4.78% 0.02%
2019 31.47% 31.45% 31.43% 0.03%
2020 21.00% 20.99% 20.96% 0.02%
2021 YTD -0.82% -0.82% -0.82% 0.00%
Since inception annualized 10.54% 10.53% 10.51% 0.02%
Source: BlackRock As of 31 July 2020; Benchmark is the MSCI World ex-U.S. IMI Index Inception Date: 08/07/2003. On 8/31/2010, LADWP redeemed out of the Large Cap Index Trust managed by BlackRock Investment Management, LLC and transitioned into the Russell 1000 Index Fund managed by BlackRock Institutional Trust, N.A
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 23 As of 31 Jan 2021 Water and Power Employees’ Retirement Plan Russell 1000 Index Fund Performance Overview
40% Fund (gross) 35% Fund (net) 30% Index 25% 20% 15% 10% 5% 0% -5% -10% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD Since incep. ann. Time Period Fund (gross) Fund (net) Index Difference
2010 16.17% 16.16% 16.10% 0.06%
2011 1.56% 1.55% 1.50% 0.05%
2012 16.47% 16.46% 16.42% 0.04%
2013 33.14% 33.13% 33.11% 0.02%
2014 13.27% 13.26% 13.24% 0.02%
2015 0.96% 0.95% 0.92% 0.04%
2016 12.12% 12.11% 12.05% 0.06%
2017 21.71% 21.70% 21.69% 0.01%
2018 -4.75% -4.76% -4.78% 0.02%
2019 31.47% 31.45% 31.43% 0.03%
2020 21.00% 20.99% 20.96% 0.02%
2021 YTD -0.82% -0.82% -0.82% 0.00%
Since inception annualized 10.54% 10.53% 10.51% 0.02%
Source: BlackRock; As of 31 July 2020 ; Benchmark is the MSCI World ex -U.S. IMI Index ; Inception Date: 08/07/2003. On 8/31/2010, LADWP redeemed out of the Large Cap Index Trust managed by BlackRock Investment Management, LLC and transitioned into the Russell 1000 Index Fund managed by BlackRock Institutional Trust, N.A
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 24 Water and Power Employees’ Retirement Plan Portfolio Attribution: Sectors
Our investment objective for the Los Angeles Department of Water and Power Fund is to replicate the risk and return of the Russell 1000 Index.
As this is a passive portfolio, portfolio attribution of sectors is not applicable
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 25 Water and Power Employees’ Retirement Plan Portfolio Attribution: Top contributors/detractors
Our investment objective for the Los Angeles Department of Water and Power Fund is to replicate the risk and return of the Russell 1000 Index.
As this is a passive portfolio, contributors/detractors are at index levels. There are no active over/underweights for attribution.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 26 Water and Power Employees’ Retirement Plan Portfolio Attribution: Stock Selection
Our investment objective for the Los Angeles Department of Water and Power Fund is to replicate the risk and return of the Russell 1000 Index.
As this is a passive portfolio, stock selection is not performed. Individual securities are weighted at index levels, therefore attribution is not applicable.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 27 ii. Portfolio Characteristics
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY As of 31 Dec 2020 Russell 1000® Index Fund Characteristics Fund information Sector diversification
Benchmark Russell 1000® Index 10.37 Communication services Total fund assets $93.75B 10.37 12.37 Consumer discretionary Number of issues in fund 1,017 12.37 Number of issues in benchmark 1,019 6.05 Consumer staples 6.04 2.14 Energy Top 10 holdings 2.14 10.40 Fund % Index % Financials 10.40 Apple Inc 5.99 6.03 13.49 Health care 13.49 Microsoft Corp 4.66 4.69 8.83 Industrials Amazon Com Inc 3.86 3.89 8.83 28.01 Facebook Class A Inc 1.83 1.85 Information technology 28.01 Tesla Inc 1.49 1.50 2.72 Materials 2.72 Alphabet Inc Class A 1.47 1.48 2.97 Real estate Alphabet Inc Class C 1.42 1.43 2.97 2.65 Berkshire Hathaway Inc Class B 1.22 1.23 Utilities 2.64 Johnson & Johnson 1.16 1.17 0 5 10 15 20 25 30 JPMorgan Chase & Co 1.08 1.08 Fund Benchmark Fund inception date 31 January 1987 Data is used for analytical purposes only. Indexdata maydiffer tothosepublished bytheIndexduetocalculation methods. Breakdowns may notsumto100 percentdueto rounding, exclusion of cash, STIF and statistically immaterial factors. Portfolio holdings are subject to change and are notintended as a recommendation of individual securities. Sources: BlackRock, FTSE Russell
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 29 As of 31 Jan 2021 Russell 1000 Index Fund Sector Diversification
Sector weights Fund Index Difference
Information Technology 27.8% 28.0% -0.21%
Health Care 13.8% 13.9% -0.10%
Consumer Discretionary 12.4% 12.5% -0.09%
Communication Services 10.3% 10.3% -0.08%
Financials 10.2% 10.3% -0.09%
Industrials 8.5% 8.6% -0.06%
Consumer Staples 5.8% 5.8% -0.04%
Real Estate 3.0% 3.0% -0.02%
Materials 2.7% 2.7% -0.02%
Utilities 2.6% 2.6% -0.02%
Energy 2.2% 2.2% -0.02%
Other 0.8% 0.0% 0.76%
Source: BlackRock As of 31 Jan 2021
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 30 As of 31 Jan 2021 Russell 1000 Index Fund Country Diversification
Country weights Fund Index Difference
United States 100.00% 100.00% 0.00%
Source: BlackRock As of 31 Jan 2021
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 31 As of 31 Jan 2021 Russell 1000 Index Fund Performance Overview Portfolio Value Water and Power Employees’ Retirement Plan
Initial value as of 31 August 2010 $531,877,753
Contributions $160,304,288.02
Withdrawals ($1,934,000,000)
Interest* $145
Change in market value $2,410,838,613
Market value as of 31 January 2021 $1,169,020,799
Retiree Health Benefits Fund
Initial value as of 31 August 2010 $119,429,892
Contributions $26,090,000
Withdrawals ($341,300,000)
Interest* $0
Change in market value $402,017,256
Market value as of 31 January 2021 $206,237,148
Source: BlackRock As of 31 Jan 2021 Please note that the change in portfolio value detailed above is only relevant to the MSCI World ex-US IMI Index Fund managed by BlackRock Institutional Trust, N.A. * Interest earned is from assets held in the Money Market Fund which is the sweep vehicle for the MSCI World ex-US IMI Index Fund. ** As of 31 Jan 2021
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 32 As of 31 Jan 2021 Water and Power Employees’ Retirement Plan Diversification: Comparison of risk exposures to benchmark
Our investment objective for the Water and Power Employees’ Retirement Plan is to replicate the risk and return of the Russell 1000 Index. • Predicted (ex-Anti) Tracking Error: 0.05% • Number of Stocks Held In Portfolio: 1,013 • Beta: 1.0
Risk exposures
Barra Style Factors (Standard Deviation) Active
Market 0.00 Beta 0.00 Momentum 0.00 Size 0.00 Earnings Yield 0.00 Residual Volatility 0.00 Growth 0.00 Dividend Yield 0.00 Book-To-Price 0.00 Leverage 0.00 Liquidity 0.00 Non-Linear Size 0.00
Source: Barra, BlackRock, as of 31 Jan 2021
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 33 V. Management Fee Schedule
FORFOR USE USE WITH WITH WATER WATER AND AND POWER POWER EMPLOYEES’ EMPLOYEES’ RETIREMENT RETIREMENT PLAN PLAN ONLY ONLY Water and Power Employees’ Retirement Plan Investment Management Fee Schedule
Investment Management Fee Strategy Name Flat rate per annum First $500M: 1 basis points Russell 1000 Index Fund Balance: 0.75 basis points
As of 31 Jan 2021
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 35 Appendix
FORFOR USE USE WITH WITH WATER WATER AND AND POWER POWER EMPLOYEES’ EMPLOYEES’ RETIREMENT RETIREMENT PLAN PLAN ONLY ONLY i. Presenter Bios
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY Presenter Biographies
Laura Champion, Director, is a member of the US and Canada Institutional team within BlackRock's Institutional Client Business. She is responsible for developing and maintaining relationships with institutional investors, including public and private pension plans, foundations and endowments.
Ms. Champion's service with the firm dates back to 2011. Before assuming her current responsibilities, Ms. Champion previously worked as a Business Development Associate in iShares within the Wealth Advisory channel where she was responsible for developing and maintaining relationships with financial advisors across the retail business. Prior to joining BlackRock in 2011, Laura worked for Bank of America Merrill Lynch in Institutional Equity Research Sales in San Francisco where she focused on developing and maintaining relationships with institutional investors, corporate management teams and research analysts with an emphasis on regional roadshow coordination and marketing.
Ms. Champion received a B.A. in Global and International Studies and a B.A. in French Literature from the University of California Santa Barbara.
Christian De Leon, Vice President, is an Index Equity strategist within BlackRock's ETF & Index Investments group.
Mr. De Leon's service with the firm dates back to 2010. Before transitioning to the ETF and Index Investments group, he was a product manager in the US & Canada Defined Contribution group. In this role, Mr. De Leon ensured that institutional defined contribution clients had the resources and information they needed for optimal plan design and implementation. In addition, he focused on institutional and regulatory operations. Mr. De Leon began his career as a manager of Equity Portfolio Accounting at State Street.
Mr. De Leon earned a B.S. in Managerial Economics from University of California, Davis, an M.S. in Financial Analysis and Investment Management from Saint Mary's College, and is currently an MBA candidate at the University of Southern California's Marshall School of Business.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 38 Presenter Biographies
Ania Johnson, Vice President, is a member of the Strategic Client Coverage team within BlackRock's Institutional Client Business, responsible for developing and maintaining relationships with strategic institutional investors, specifically public and corporate pension plans.
Prior to her current role, Ms. Johnson served as a Relationship Manager Associate on the US Wealth Advisory National Accounts team supporting business development and relationship management with strategic home office clients across Wirehouse & Independent broker dealers. Previously, Ms. Johnson was a member of BlackRock's Defined Contribution (DC) Marketing Team where she was responsible for the development and execution of custom marketing programs for key strategic clients within the DC advisor-sold retail space. In this capacity, Ms. Johnson partnered with sales leadership to deliver marketing campaigns to support the commercialization efforts for new and existing product builds.
Ms. Johnson earned her B.A. degree from New York University, Leonard N. Stern School of Business where she majored in Marketing & International Business with a minor in East Asian Studies for Mandarin.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 39 ii. BlackRock Relationship Management Team Contact Information
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY Water and Power Employees’ Retirement Plan BlackRock Relationship Management Team
Name Title Phone Email
Zaneta Koplewicz Managing Director (212) 810-8282 zaneta.koplewicz@blackrock.com
Laura Champion Director (415) 670-4841 [email protected]
Ania Johnson Vice President (646) 310-1631 [email protected]
Matt Holler Vice President (415) 369-5531 [email protected]
Luna Wang Associate (646) 231-8458 [email protected]
400 Howard Street San Francisco Office address San Francisco, CA 94105
New York Office address 55 E. 52nd St New York, NY 10055
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 41 iii. Disclosures
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY Third Party Awards
Chief Investment Officer Awards 2014 and 2016 – Top Transition Management Provider and Chief Investment Officer Awards 2017 – Innovation Award for Transition Management Chief Investment Officer rated BlackRock as the top Transition Management provider in Client Satisfaction in 2014 and 2016 and granted it the Innovation Award for Transition Management in 2017. There is no guarantee that similar results will be achieved. The CIO Awards are split into two general categories: asset management/servicing and asset owners. With input from the awards Advisory Board, as well as surveys and data where applicable, the CIO editorial team makes the final decisions as to finalists and eventual winners. European Pensions Awards 2014 and 2015 – Best Transition Management Team The European Pensions Award was given to BlackRock in 2014 and 2015 for best transition management team as determined by a panel of independent judges, and represents recognition of their services in European Pensions. Candidates determined by nominations. Global Investor Group Global Investor Group awarded BlackRock as Transition Manager of the Year in 2018 and 2019. Investment process subject to change and provided for illustrative purposes only.
Past performance is not a reliable indicator of current or future results.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-40/43 43 Important Notes
BlackRock Institutional Trust Company, N.A. (“BTC”) is a wholly-owned subsidiary of BlackRock, Inc. For ease of reference, “BlackRock” may be used to refer to BlackRock, Inc. and its affiliates, including BTC. Any strategy referred to herein does not give rise to a deposit or other obligation of BlackRock, Inc. or its subsidiaries and affiliates, is not guaranteed by BlackRock, Inc. or its subsidiaries and affiliates, is not insured by the United States Federal Deposit Insurance Corporation or any other governmental agency, and may involve investment risks, including possible loss of principal invested. The Fund is also subject to other key risks, as described in the Fund’s Collective Investment Fund Profile. Some or all of those risks may adversely affect the value of units in the Fund, yield, total return and the Fund’s ability to meet its investment objective. See the Collective Investment Fund Profile for additional information. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original cost. Any opinions expressed in this publication reflect our judgment at this date and are subject to change. No part of this publication may be reproduced in any manner without the prio r written permission of BTC. Fund performance assumes reinvestment of income and does not reflect management fees and certain transacti on costs and expenses charged to the fund. Risk controls, asset allocation models and proprietary technology do not promise any level of performance or guarantee against loss of principal. The Fund, a collective investment trust maintained and managed by BTC, is available only to certain eligible investors and no t offered or available to the general public. In the event of a conflict between this summary description of the Fund and the trust document under which the Fund was established, the trust document will govern. For more information related to the Fund, please see the Fund's trust document, Collective Investment Fund Profile and most recent audited financial statements. BTC, a national banking association operating as a limited purpose trust company, manages the collective investment products and services discussed in this publication and provides fiduciary and custody services to various institutional investors. A collective investment fund is privately offered. Accordingly, prospect uses are not required and prices are not available in local publications. To obtain pricing information, please contact your local service representative. None of the information constitutes a recommendation by BTC or a solicitation of any offer to buy or sell any securities. The information is not intended to provide be relied upon as a forecast, research or investment advice. Neither BTC nor BlackRock, Inc. guarantees the suitability or potential value of any particular investment. The information contained herein may not be relied upon by you i n evaluating the merits of investing in any investment. THIS MATERIAL IS HIGHLY CONFIDENTIAL AND IS NOT TO BE REPRODUCED OR DISTRIBUTED TO PERSONS OTHER THAN THE RECIPIENT . © 2021 BlackRock, Inc. All rights reserved. BLACKROCKis a registered trademark of BlackRock, Inc. in the United States and elsewhere. All other trademarks are the property of their respective owners. NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-41/43 44 Important Notes (cont’d)
THE INFORMATION CONTAINED HEREIN MAY BE PROPRIETARY IN NATURE AND HAS BEEN PROVIDED TO YOU ON A CONFIDENTIAL BASIS, AND MAY NOT BE REPRODUCED, COPIED OR DISTRIBUTED WITHOUT THE PRIOR CONSENT OF BLACKROCK, INC. (“BLACKROCK”). These materials are not an advertisement and are not intended for public use or dissemination.
This communication is not an offer and should not be deemed to be a contractual commitment or undertaking between the intende d recipient of this communication and BlackRock but an indication of what services may be offered subject to a legally binding contract between the parties and therefore no reliance should be placed on this document or its content. Opinions, estimates and recommendations offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This communication and its content represent confidential information. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. You should consult your tax or legal adviser regarding such matters.
Any reference herein to any security and/or a particular issuer shall not constitute a recommendation to buy or sell, offer t o buy, offer to sell, or a solicitation of an offer to buy or sell any such securities issued by such issuer. Performance and Fees Past performance is not a guarantee or a reliable indicator of future results. Certain performance figures do not reflect the deduction of investment advisory fees (described in Part 2 of BlackRock's Form ADV) but they do reflect commissions, other expenses (except custody), and rein vestment of earnings. Such fees that a client may incur in the management of their investment advisory account may reduce the client's return. For examp le, assuming an annual gross return of 8% and an annual management/advisory fee of .40%, the net annualized total return of the portfolio would be 7.58% over a 5-year period. The “net of fees’ performance figures reflect the deduction of actual investment advisory fees but do not reflect the deduction of cus todial fees. All periods longer than one year are annualized. (Separate account clients may elect to include BlackRock funds in their portfolio; sector funds may be subject to additional terms and fees.)
Credit Quality The credit quality of a particular security or group of securities does not ensure the stability or safety of an overall portfolio. The Quality ratings of individual issues/issuers are provided to indicate the credit worthiness of such issues/issuer and generally range from AAA, Aaa, or AAA (highest) to D, C, or D (lowest) for S&P, Moody’s, and Fitch respectively.
Forward Looking Information
This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns, and proposed or expected portfolio composition. Moreover, where certain historical performance information of other investment vehicles or composite accounts managed by BlackRock, Inc. and/or its subsidiaries (together, “BlackRock”) has been included in this material, such performance information is presented by way of example only. No representation is made that the performance presented will be achieved, or that every assumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-42/43 45 Important Notes (cont’d)
Forecast
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, of fer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are those of the authors and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and/or make investment decisions that, in certain respects, may not be consistent with the information contained in this document. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any of these views will come to pass. Reliance upon information in this material is at th e sole discretion of the reader.
Index
It is not possible to directly invest in an unmanaged index.
Risk
Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Mortgage and asset-backed securities may be sensitiveto changes in interest rates, subject to early repayment risk, and while generally backed by a government, government-agency or private guarantor there is no assurance that the guarantor will meet its obligations. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Investors will, at times, incur a tax liability. Income from municipal bonds may be subject to state and local taxes and at times the alternative minimum tax. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. There can be no assurance that the investment objectives of any strategy referred to herein will be achieved. An investment in any strategy referred to herein involves a high degree of risk, including the risk that the entire amount invested may be lost.
THIS MATERIAL IS HIGHLY CONFIDENTIAL AND IS NOT TO BE REPRODUCED OR DISTRIBUTED TO PERSONS OTHER THAN THE RECIPIENT. The information contained in this presentation is proprietary and confidential and may contain commercial or financial information, trade secrets and/or intellectual property of BlackRock. If this information is provided to an entity or agency that has, or is subject to, open records, open meetings, “freedom of information”, “sunshine” laws, rules, regulations or policies or similar or related laws, rules, regulations or policies that require, do or may permit disclosure of any portion of this information to any other person or entity to which it was provided by BlackRock (collectively, “Disclosure Laws”), BlackRock hereby asserts any and all available exemption, exception, procedures, rights to prior consultation or other protection from disclos ure which may be available to it under applicable Disclosure Laws. © 2021 BlackRock, Inc. All rights reserved. ALADDIN, BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are the property of their respective owners.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY EIIiBM0221U/S-1507328-43/4346 Important Notes
For recipients in the US: In the US this material is for institutional investors only. For recipients in Canada: This material is intended for permitted clients in Canada only.
For recipients in the EU: In the EU issued by BlackRock Investment Management (UK) Limited (authorised and regulated by the Financial Conduct Authority). Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England No. 2020394. Tel: 020 7743 3000. For your protection, telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited.
For qualified investors in Switzerland: this document shall be exclusively made available to, and directed at, qualified investors as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended.
Issued in the Netherlands by the Amsterdam branch office of BlackRock Investment Management (UK) Limited: Amstelplein 1, 1096 HA Amsterdam, Tel: 020 - 549 5200.
For recipients in Korea: For distribution in Korea for Professional Investors only ("Professional Investors") as defined in t he local regulation.
For recipients in Singapore: In Singapore, this is issued by BlackRock (Singapore) Limited (Co. registration no. 200010143N) for use only with institutional investors as defined in Section 4A of the Securities and Futures Act, Chapter 289 of Singapore.
For recipients in Hong Kong: In Hong Kong, the information provided is issued by BlackRock Asset Management North Asia Limited and is only for distribution to "professional investors" (as defined in the Securities and Futures Ordinances (Cap. 571 of the laws of Hong Kong)) and should not be relied upon by any other persons.
For recipients in China: These materials may not be distributed to individuals resident in the PRC or entities registered in the PRC unless such parties have received all the required PRC government approvals to participate in any investment or receive any investment advisory or investment management services
For recipients in Latin America: In Latin America and Iberia, for institutional investors and financial intermediaries only (not for public distribution). This material is for educational purposes only and does not constitute investment advice or an offer or solicitation to sell or a solicitation of an offer to buy any shares of any fund or security and it is your responsibility to inform yourself of, and to observe, all applicable laws and regulations of your relevant jurisdicti on. If any funds are mentioned or inferred in this material, such funds may not been registered with the securities regulators of Argentina, Brazil, Chile, Colombia, Mexico, Pa nama, Peru, Portugal, Spain Uruguay or any other securities regulator in any Latin American or Iberian country and thus, may not be publicly offered in any such countries. The securities regulators of any country within Latin America or Iberia have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America or Iberia. The contents of this material are strictly confidential and must not be passed to any third party.
This document contains general information only and is not intended to be relied upon as a forecast, research, investment advice, or a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information does not take into account your financial cir cumstances. An assessment should be made as to whether the information is appropriate for you having regard to your objectives, financial situation and needs.
The opinions expressed are as of January 31st, 2021 and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by BlackRock, Inc. and/or its subsidiaries (together, “BlackRock”) to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. There is no guarantee that any forecasts made will come to pass. Any investments named within this material may not necessarily be held in any accounts managed by BlackRock. Reliance upon information in this material is at the sole discretion of the reader. Past perfo rmance is no guarantee of future results.
BlackRock® is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners.
© 2021 BlackRock, Inc. All rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are registered trademarks of BlackRock, Inc. or its subsidiaries. All other trademarks are the property of their respective owners.
ICBM0419U-797274-1/2 FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY 47 Disclosures
In the US, this material is for Institutional Investors only - not for public distribution. Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing. Investing involves risk, including poss ible loss of principal. Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. Past distributions are not indicative of future distributions. Prepared by BlackRock Investments, LLC, member FINRA. This material is provided for informational purposes only and does not constitute a solicitation in any jurisdiction in which such solicitation is unlawful or to any person to whom it is unlawful. Moreover, it neither constitutes an offer to enter into an investment agreement with the recipient of this document nor an invitation to respond to it by making an offer to enter into an investment agreement. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, of fer or solicitation to buy or sell any securities or to adopt any investment strategy. Opinions and estimates offered herein constitute the judgment of BlackRock and are subject to change. All opinions and estimatesare based on assumptions, all of which are difficult to predict and many of which are beyond the control of BlackRock. In addition, any calculations used to generate the estimates were not prepared with a view towards public disclosure or compliance with any published guidelines. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Reliance upon information in this material is at the sole discretion of the reader. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns, and proposed or expected portfolio composition. No representation is made that the performance presented will be achieved, or that every assumption made in achieving, calculating or presenting either the forward- looking information or the historical performance information herein has been considered or stated in preparing this material . Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example. Past performance is not a guarantee of future results. Asset allocation and diversification strategies do not guarantee profit and may not protect against loss. ©2021 BlackRock, Inc. All rights reserved. iSHARES, ALADDINand BLACKROCKare trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.
FOR USE WITH WATER AND POWER EMPLOYEES’ RETIREMENT PLAN ONLY ICBH0121U/S-1479221-9/10 48