Annual Presentation by Blackrock Institutional Trust Company – International Developed Passive Equities Manager (October 2, 2019, Special Retirement Board Meeting)

Item No. 18: Annual Presentation by Blackrock Institutional Trust Company – International Developed Passive Equities Manager (October 2, 2019, Special Retirement Board Meeting)

INVESTMENT MANAGER SUMMARY

MANAGEMENT Firm Name Blackrock Institutional Trust Company Manager Tenure with Fund 7 Years Investment Strategy/Vehicle International Developed Passive Equity Contract Expiration 08/31/2021

ASSETS Total Firm AUM (07/31/2019) $6.84 Trillion Total Firm Assets in Strategy (07/31/2019) $0.70 Billion Total Assets Managed for WPERP RP - $567.5 Million (08/31/2019) HP - $95.5 Million

PERFORMANCE As of 08/31/2019 1 Year 3 Year 5 Year Inception Blackrock (gross) -3.34% 6.36% 2.29% 6.06% Blackrock (est. net) -3.34% 6.36% 2.28% 6.04% MSCI World ex US IMI Net -3.76% 5.89% 1.86% 5.64% Difference (net of fees) 0.42% 0.47% 0.42% 0.40%

Fees Schedule 2.8 basis points on all assets Current Blended Fee 0.028%

WATCH STATUS N/A

PREVIOUSLY DISCLOSED LITIGATION N/A

MSCI World ex-US IMI Review 2 October 2019

Water and Power Employees’ Retirement Plan

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL Presenter Biographies

Scott Dohemann, CFA, Managing Director, is Head of US Index Strategy within BlackRock's ETF & Index Investments Group. Mr. Dohemann's service with the firm dates back to 1998, including his years with Barclays Global Investors (BGI), which merged with BlackRock in 2009. Prior to his current Beta Strategy role, he was part of the Transition Management team where he was responsible for advising clients on transition activity as well as further developing the transition product. At BGI, Mr. Dohemann fulfilled a similar transition management role as a senior transition manager in the group both in advising clients and in undertaking responsibilities for a team of portfolio managers and operational specialists. Prior to joining BGI, he worked for Merrill Lynch as a financial consultant in the Private Client Group. Mr. Dohemann earned a BSc in finance from San Diego State University in 1992.

Jeremy Watt, Director, is a member of the US and Canada Institutional team within BlackRock's Institutional Client Business. He is responsible for developing and maintaining relationships with institutional investors, including public and private pension plans, foundations and endowments. Mr. Watt's service with the firm dates back to 1996, including his years with Barclays Global Investors (BGI), which merged with BlackRock in 2009. At BGI, he was a senior client relationship officer for the US Institutional Client Service Group. Mr. Watt began his career at BGI as a senior data analyst before serving as a project manager for BGI's Global Market Data Group. Prior to joining BGI, Mr. Watt was afund accountant and a securities operations analyst at Invesco. Mr. Watt earned a BA degree in business studies from Charles Sturt University.

Rick Castro, Vice President, is a member of the US and Canada Institutional team within BlackRock's Institutional Client Business. He is responsible for developing and maintaining relationships with institutional investors, including public and private pension plans, foundations, and endowments. Mr. Castro's service with the firm began in 2012, as an intern with the BlackRock Multi-Asset Client Solutions (BMACS) group, focusing on multi-asset, derivatives-based portfolios and LDI. Mr. Castro earned a BA degree in public policy from Stanford University in 2013.

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 1 Table of contents

1. BlackRock Update 2. Index Investment Process and Discipline 3. Market Overview 4. Performance Review 5. Portfolio Review and Characteristics 6. Fee Schedule Appendix

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 2 1. BlackRock Update BlackRock at a glance

BlackRock Purpose Statement

We help more and more people experience financial well-being

BlackRock facts $6.84 trillion managed across asset classes

• Established in 1988 • NYSE: BLK Passive Fixed Income • $6.84 trillion assets under management Active Fixed 1.2 tn • More than 13,500 employees Income Multi-Asset 926 bn • More than 2,000 investment professionals 523 bn • Offices in over 34 countries Cash Management Alternatives¹ 481 bn • 25 primary investment centers globally 158 bn Advisory • Clients in over 100 countries 1.7 bn Active Equity • Over 850 iShares® ETFs Globally 289 bn • Through BlackRock Solutions, the Firm provides risk management and enterprise investment services for over 200 clients Passive Equity • Financial Markets Advisory business managed or advised on over $8 trillion in asset and derivative portfolios 3.1 tn

• Transition Management team partners with clients to save Assets as of 30 June 2019 costs and reduce risks when changing investment exposures 1 Includes commodity and currency mandates

As of 30 June 2019. All figures are represented in USD.

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL ICBM0419U-797274-1/2 4 Firm culture and structure reinforce our client-centric approach

Independent asset manager focused only on clients History of innovation and • Established in 1988 and public since 1999 (NYSE: BLK) evolution to better serve investors • Independent Board of Directors 1970s • Pioneered index and quantitative investing • No proprietary trading • Group dedicated to corporate governance • Created the First Term Trust (closed-end fund) 1980s • Initiated fixed income and international indexing

Deep understanding of regulatory requirements • Created the industry’s first target date fund • Manage portfolios for clients subject to varied and 1990s • Introduced exchange-traded funds under World Equity complex regulatory regimes Benchmark Shares (WEBS) brand (now iShares® ETFs) • Operate on behalf of investors under more than 80 • Launched BlackRock Solutions® for risk management and regulatory authorities worldwide advisory services • Enhanced capabilities by strengthening equities, and • Significant experience managing portfolios for official 2000s adding alternatives, real estate, passive, and scientific institutions and governments investments • Launched Financial Markets Advisory business ® BlackRock Solutions foundation for managing risk • Engaged by US and European governments for critical risk assessments and banking sector stabilization strategies • Deliberate, diversified and scaled risk enables us to invest with conviction in pursuit of alpha • Launched BlackRock Investment Institute 2010s • Introduced Global Capital Markets desk • Internally developed risk tools and analysis offered directly to clients as a service • Launched first target maturity fixed income ETF • Created an index to track sovereign credit risk • Reinforces transparency and our responsibility to clients (BlackRock Sovereign Risk Index)

Timeline includes history from predecessor entities

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL ICBH0319U-784686-1/6 5 BlackRock corporate governance

BlackRock is a public company • Established in 1988 and public since 1999 (NYSE: BLK) Independent ownership structure • Board composed of 18 Directors: 14 independents, 3 BlackRock, and 1 PNC

Board Members Global Executive Committee (GEC) Laurence Fink Chairman & Chief Executive Officer Bader Alsaad* Robert Kapito Robert Kapito President Philipp Hildebrand Vice Chairman Mathis Cabiallavetta* Cheryl Mills* Barbara Novick Vice Chairman Pamela Daley* Gordon Nixon* Robert Fairbairn Vice Chairman William Demchak Charles Robbins* Geraldine Buckingham Head of Asia Pacific Head of Alternatives Jessica Einhorn* Ivan Seidenberg* Edwin Conway Frank Cooper III Chief Marketing Officer Laurence Fink Marco Antonio Slim Rob Goldstein Chief Operating Officer & Head of BRS Domit* William Ford* Ben Golub Chief Risk Officer Head of Multi-Asset Strategies & Fixed Income Fabrizio Freda * Susan Wagner Richard Kushel Rachel Lord Head of Europe, Middle East & Africa Murry Gerber* Mark Wilson* Mark McCombe Chief Client Officer & Head of the Americas Margaret Johnson* Christopher Meade Chief Legal Officer Gary Shedlin Chief Financial Officer Derek Stein Head of Business Operations & Technology Mark Wiedman Head of International & Corporate Strategy Mark Wiseman Head of Active Equities Salim Ramji Head of iShares & Index Investments * Independent

As of 31 August 2019

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 6 The LADWP Account Coverage Team

Name Title Phone Email

Jeremy Watt Director (415) 670-7208 jeremy.watt@blackrock.com

Rick Castro Vice President (310) 566-1009 [email protected]

400 Howard Street San Francisco Office address San Francisco, CA 94105

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 7 2. Index Investment Process and Discipline BlackRock’s Index Equity Platform

Global leader in Index Equity assets1 • We seek to deliver consistent performance with efficient outcomes for our clients • Thousands of skillful and thoughtful decisions made each year for swift response to market trends and client demands Extensive and flexible platform for index strategies • Over 2,000 funds managed against 850+ benchmarks • Daily liquidity with T-1 notification (for US equities) and T-2 notification (for non US equities)2 • Modular fund structure and asset allocation platform facilitates custom and outcome oriented strategies

Total index managed assets of $3.3 trillion 2019 YTD Distribution of assets by vehicle type in 2019 YTD

In billions USD $3.4T $3.3T $3.1T ETF 43.8% $2.7T 1,364 $2.4T $2.4T 1,459 $2.2T 1,304 977 808 841 721 Separate Account 2,044 1,817 1,847 33.6% 1,445 1,566 1,529 1,680 CTF 20.5% Other 2013 2014 2015 2016 2017 2018 2019 YTD 2.1% Non-ETF Global iShares

Source: BlackRock, Inc. and its affiliates (together “BlackRock”) as of 30 June 2019 1 In terms of AUM. Source: Pensions & Investments 2 Currency hedged funds are currently open monthly

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-4/38 9 48 years of experience driving index forward

We constantly reinvest in and reinvent our business so our clients have access to high quality index solutions  Drive the industry forward through our ability to create specialized, innovative investments afforded by our scale and depth of expertise  Forge new ground for clients — first manager to offer opportunities in equity index developed and emerging markets

 Evolve capabilities to continuously deliver on emerging trends — smart beta, global benchmarking, liquidity/completion strategies  Serve as an index advocate on behalf of clients and as a key partner to index providers seeking our practitioner knowledge

48 years of Index Equity — Continual evolution of products, technology and capabilities

BlackRock Index Equity AUM

World Equity Triple A: iShares Eliminated EAFE Frontier Minimum Project Vision Index pioneer Defined Emerging Index Markets Volatility and innovator contribution Market Benchmark asset allocation Exchange- dividend Shares (WEBS) PM tool Traded Funds flipping Plus ETFs capabilities Equity Index ESG fu n d s eries Fundamentally Journey Risk model weighted Management enhancements strategies

2019 1971 YTD

Fund of fund structures Factor ETFs EM Directed FX Currency Aladdin EAFE Equity Income Hedged Russell Index Investment Migration Index strategy Daily openings Equity and Funds Analysis: EAFE iShares for all funds T-2 for currency First 401(k) index portfolio ETFs Small ETFs Securities International hedging Target Date management Cap Lending Emerging tool Fund (LifePath) Markets Small Cap

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-5/38 10 Americas – Investments Pillar

ETF and Index Investments Business

Investments Pillar Leadership

Manish Mehta Global Head of Investments, Products, and Markets

Americas Portfolio Management Global Research Global Strategy

Alan Mason Ananth Madhavan Jessica Irschick Head of Americas Portfolio Global Head of ETF and Global Head of Index Management Index Investment Research Product Strategy

Portfolio Management Research Strategy

Developed U.S. & Canada Index Asset Investment Emerging Index Plus Index Research Global Strategy Markets ETF Allocation Research

Rachel Aguirre Jennifer Hsui, CFA Amy Whitelaw Greg Savage, CFA Creighton Jue, CFA Stephanie Allen Head of Developed Head of Emerging Head of U.S. & Canada Head of Index Global Head of Index Plus Global Head of + 30 Research Officers Americas Markets Portfolio Markets Portfolio ETF Portfolio Asset Allocation Portfolio Management Index Research Management Management Management Scott Dohemann, CFA Head of U.S. Product Strategy International D efined Benefit & U.S. Inst’l U.S. ETF Index Plus Index Research Timothy Murray, CFA Emerging Inst’l Defined Contribution Emily Foote, CFA + 5 Portfolio + 6 Portfolio + 6 Portfolio + 6 Portfolio + 4 Portfolio + 9 Index Christian De Leon Managers Managers Managers Managers Managers Researchers Jacqueline Ramkumar Niyati Mohan International International Grace Lancaster Canada ETF FX / Synthetics Developed Inst’l Emerging ETF

+ 7 Portfolio + 5 Portfolio + 4 Portfolio + 4 Portfolio Managers Managers Managers Managers EMEA

Andrew Graver* Sub-Advised Head of EMEA Index Strategy + 3 Portfolio Norbert van Veldhuizen* Managers Caroline Hertrich* Dovile Silenskyte* International Enrico Zamagna* Developed ETF Emilie Karlsson* + 5 Portfolio Managers APAC

Jonathan Howie* Head of APAC As of 30 June 2019 Index Strategy Marina Hinterhaeuser* * Located outside of the US Priya Anoop*

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-6/38 11 An approach that seeks to deliver efficient investment outcomes

BlackRock’s disciplined, pragmatic and adaptable Consistent Returns approach to index tracking is focused on optimally  Seeks to deliver managing and balancing consistent returns in line with the return, risk and cost. benchmark  Deep knowledge of Return financial markets and indices  Track record of enhanced returns from securities lending

Risk Cost Risk Management Cost Efficiency

 Risk managed process  Preserve value for that seeks to clients through our consistently deliver intelligent approach to optimal tracking index events outcomes  Extensive global  Market leading risk trading platform helps analytics and ensure cost are low investment tools Total Performance Management and we have optimal provided by our access to liquidity Aladdin® platform

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-9/38 12 Index investment management cycle – dedicated expertise and resources

Performance & Oversight Benchmark Knowledge • Review cumulative effect of • Detailed knowledge of index investment decisions to help identify methodologies factors contributing to/subtracting • Experience with predicting and from portfolio performance projecting index changes • Risk & Quantitative Analysis Team • Focused on optimal treatment of (RQA) monitors dozens of risk factors corporate actions globally on a continuous basis • Continual research into index events

Efficient Trading Portfolio Construction • Building smart trading strategies • Significant investment in technology designed to access optimal liquidity • Market leading portfolio and risk • Industry’s largest internal market tools provided by our Aladdin® place for potential netting of client platform flows • Integrated cost and liquidity analysis • Focused trading research and • Sophisticated optimization tools systems

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-10/38 13 MSCI market classification summary

MSCI continues to implement changes to their flagship Emerging Markets indexes.

Saudi Arabia was officially added to the 2018 Annual Market Classification Review in 2017. The country will be Saudi implemented in atwo-step inclusion process, which commenced in May 2019 and will continue through to August 2019. Arabia Saudi is projected to make up 2.6% of the MSCI Emerging Markets upon completion.

MSCI will reclassify Kuwait to Emerging Markets status, subject to availability of omnibus account structures and same National Investor Number (NIN) cross trades for international investors. This will occur in one step coinciding with the May Kuwait 2020 Semi‐Annual Index Review. This will lead to an inclusion of nine stocks in the MSCI Emerging Market Index having a pro forma index weight of approximately 0.5% of the MSCI Emerging Markets .

MSCI will increase the weight of China A shares in the MSCI Indexes by increasing the inclusion factor (IF) from 5% to 20% in three steps. The process began in May 2019 and will end in November 2019. MSCI increased/will increase the inclusion factor of all China A Large Cap shares in the MSCI Indexes: 1. from 5% to 10% and added ChiNext Large Cap shares with a 10% inclusion factor coinciding with the May China 2019 Semi-Annual Index Review (SAIR). A-shares 2. from 10% to 15% coinciding with the August 2019 Quarterly Index Review 3. from 15% to 20% and will add China A Mid Cap shares, including eligible ChiNext shares, with a 20% inclusion factor to the MSCI Indexes coinciding with the Nov 2019 SAIR. On completion of this three-step implementation, there will be 253 Large and 168 Mid Cap China A shares, including 27 ChiNext shares, on a pro forma basis in the MSCI Emerging Markets Index, representing a weight of 3.3% in the pro forma index.

Source: MSCI as of 6/30/2019

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-19/38 14 May 2019 MSCI Quarterly Index Rebalance Results

 May’s MSCI Quarterly Rebalance had relatively high turnover due to a host of country classification and methodology changes, particularly in Emerging Markets  629 MSCI funds were traded globally representing total AUM of approximately $1.2 trillion  114,408 orders were executed worth approximately $76.4 billion  99% of trades were executed on effective date across all regions. Orders were placed prior to effective date for liquidity management

Rebalance highlights MSCI index change details

Saudi Arabia - first of two tranches of inclusion: May 2018 May 2019  31 additions to EM Standard and 39 additions to EM Small Index # Adds # Deletes Two-Way Two-Way Cap at 50% of their free float Turnover Turnover  Saudi Arabia now constitutes 1.4% of EM 17 15 2.19% 2.00% Argentina - added in one tranche this rebalance: EAFE  Nine additions to EM Standard and 10 additions to EM Small Cap EAFE SC 96 62 9.97% 9.40%  Only foreign-listed securities added Emerging 82 18 6.22% 8.60%  Currently constitutes 0.30% of EM Standard Thailand  Methodology change to no longer impose Foreign Emerging SC 143 69 27.73% 18.40% Ownership Limits on Non-Voting Depositary Receipts (NVDRs) in Thailand World 40 23 2.11% 2.00%  Resulted in a 0.50% increase in Thailand’s weight in EM China A – first of three tranches of weight increases: Frontier 100 11 0 12.81% 17.50%  Inclusion factor increased from 5% to 10% impacting 238 securities  26 new large cap China-A additions, including 18 from the ChiNext exchange

Source: BlackRock and MSCI as of May 2019. Past performance is not indicative of future results.

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-16/38 15 August 2019 MSCI Quarterly Index Rebalance Results

 August’s MSCI Quarterly Rebalance had relatively high turnover due to the continuing changes to the Emerging Markets universe  The overall trade resulted in a gain of $6.8 million  602 MSCI funds were traded globally representing total AUM of approximately $1.2 trillion  46,558 orders were executed worth approximately $18.4 billion  99% of trades were executed on effective date across all regions. Some orders were placed prior to effective date for liquidity management

Rebalance highlights MSCI index change details

Saudi Arabia – final inclusion tranche: Aug 2018 Aug 2019  Upweight from 1.5% to 2.8% in Emerging Markets Index # Adds # Deletes One-Way One-Way  Trade date saw increased volatility but resulted in right way Turnover Turnover performance of 0.6% EAFE 1 1 0.16% 0.17% China A – second of three tranches of weight increases:  Inclusion factor increased from 10% to 15% impacting 259 EAFE SC 1 1 0.35% 0.30% securities Emerging  8 new China-A additions 11 1 0.73% 2.45% Standard  Strong performance of the buy basket resulted in trade date performance of 1.46% Emerging SC 1 8 1.45% 1.42%

Developed Markets – the rebalance trades in North America World 4 3 0.31% 0.36% and Developed Europe had relatively low turnover and went right way on trade date. The rebalance trade in Japan went wrong way. Frontier 100 1 0 0.00% 1.60%

Source: BlackRock and MSCI as of August 2019. Past performance is not indicative of future results.

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-16/38 16 Major sources of tracking error: Global & domestic index funds

Tax Reclaim Process

Securities Lending Performance Securities Litigation “Tailwinds” Enhances Return Treatment of Corporate Actions Return

Optimization Enhances Treatment of Index Changes

Post Notified Impact

NAV Rounding Reduces Return

Performance Transaction Costs Reduces Return Reduces “Headwinds” Cash Drag

Futures Rolling Costs

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-24/38 17 BlackRock’s scale and internal network for netting client flows facilitates the potential to significantly lower transaction costs BlackRock transaction costs vs. ex-ante estimates1 Average client cost in 2018, as of Dec 31, 2018 30 24 25

20 16 17 15 15 14 9 8 8 10 7 5 4 5 Transaction costs (bp) 1 2 1 2 2 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

The scale of BlackRock’s CTFs and global trading footprint resulted in reduced T costs: • On average, we have netted internally approximately 40 – 50% of client flows • Market trades reflect the industry’s most competitive commission rates

Source: BlackRock. BlackRock Flagship Index Funds shown. 1 Estimated transaction costs includes commissions and taxes based on BlackRock’s current standard negotiated rates Netting of client flows is not guaranteed, and may depend on several other factors, including but not limited to, client flows and external trading markets. Historical transaction costs are not indicative of future results.

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BETAM0719U-903084-28/38 18 3. Market Overview Market Review for Q2 2019

The MSCI World ex USA IMI Index increased +3.50% for the second quarter of 2019. Although low on an absolute basis, Q1 eurozone GDP growth increased +1.2%, beating expectations and accelerating from Q4 2018. Sentiment in the region was also supported by accommodative monetary policy, the increased expectations of further stimulus, higher than normal capacity utilization rates, and labor markets near full employment. Within the eurozone, Germany (+8.1%) and France (+7.4%) outperformed while Finland (-0.04%) and Luxembourg (-2.5%) underperformed. In interest rates, the 10yr German bund yield declined to -0.3% in the quarter, the lowest on record. In the APAC region, Australia (+7.5%) outperformed as a decline in economic growth was by a June rate cut. Japan (+1%) underperformed the benchmark but registered in positive territory as investors balanced risk-on bids for the yen, trade tensions, and declining export volumes. In Emerging Markets, a weaker U.S. dollar was broadly supportive, however not without volatility in the second quarter of 2019 as an unanticipated escalation in global trade tensions contributed to uncertainty. Weakness was particularly evident in the Asia Pacific component, which experienced a -1.3% decline. In China, the market fell -3.7% as the U.S. announcement of an increase in the tariff rate from 10% to 25% on $200bn in Chinese goods among other threats came as a downside surprise. The China component did recover from a -14% decline in May after the trade tensions were alleviated ahead of the G-20 meeting in June. Chinese fiscal and monetary policy stimulus was also supportive. On the economic front, the Caixin manufacturing PMI did fall into contractionary territory in June (49.4). Elsewhere in Asia, South Korea (-1.2%) also underperformed amid declines in export activity. In North America, the U.S. administration targeted Mexico by threatening to impose a 5% tariff on all Mexican imports while raising the rate by 5 percentage points a month until it reached a levy of 25%. This pushed the Mexican shares down -7% in May. However, the U.S. later reneged on this threat after finding that Mexico had begun to make progress on stopping the flow of migrants into the U.S. The Mexican component of the MSCI EM Index rallied +1% in the quarter. Eastern Europe gained +11.6% in the quarter, making it the best performing region. Russia (+17%) outperformed as a relatively stable economic backdrop, range-bound crude prices ahead of the early July OPEC+ meeting and growing investor confidence that the U.S. government would not take further actions that would impact Russia’s economy contributed to the outperformance. Positive sector returns in the MSCI World ex USA IMI Index came from information technology (+9.34%), industrials (+6.24%), and consumer discretionary (+5.38%). The lowest sector return was from healthcare (-3.46%), followed by real estate (+0.22%) and energy (+0.49%).

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 20 4. Performance Review LADWP performance overview

Our investment objective for the Los Angeles Department of Water and Power Fund is to replicate the risk and return of the MSCI World ex-US IMI Index

Water and Power Retirement Plan: $581,604,065

Retirement Health Benefits Fund: $97,891,113

Fund (gross) Fund (net) Index Difference

3 month -0.31% -0.32% -0.44% 0.12%

Year-to-date 13.50% 13.49% 13.13% 0.36%

1 year -2.62% -2.64% -3.04% 0.40%

3 year 7.22% 7.19% 6.75% 0.44%

Since inceptionannualized 6.17% 6.14% 5.75% 0.39%

Source: BlackRock As of 31 July 2019 Benchmark is the MSCI World ex-U.S. IMI Index Inception date: 25 September 2012

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 22 LADWP performance overview

Our investment objective for the Los Angeles Department of Water and Power Fund is to replicate the risk and return of the MSCI World ex-US IMI Index

Water and Power Retirement Plan: $581,604,065

Retirement Health Benefits Fund: $97,891,113

Fund (gross) Fund (net) Index Difference

2012 3.53% 3.52% 3.49% 0.03%

2013 22.00% 21.97% 21.57% 0.40%

2014 -4.13% -4.16% -4.45% 0.29%

2015 -1.62% -1.65% -1.95% 0.30%

2016 3.45% 3.42% 2.95% 0.47%

2017 25.71% 25.68% 25.17% 0.51%

2018 -14.30% -14.33% -14.68% 0.35%

2019 YTD 13.50% 13.49% 13.13% 0.36%

Since inceptionannualized 6.17% 6.14% 5.75% 0.39%

Source: BlackRock As of 31 July 2019 Benchmark is the MSCI World ex-U.S. IMI Index Inception date: 25 September 2012

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 23 LADWP performance overview

16%

12%

-4% 3 month Year-to-date 1 year 3 year Since inception annualized

Fund (gross) Fund (net) Benchmark

Fund (gross) Fund (net) Index Difference

3 month -0.31% -0.32% -0.44% 0.12%

Year-to-date 13.50% 13.49% 13.13% 0.36%

1 year -2.62% -2.64% -3.04% 0.40%

3 year 7.22% 7.19% 6.75% 0.44%

Since inceptionannualized 6.17% 6.14% 5.75% 0.39%

Source: BlackRock As of 31 July 2019 Benchmark is the MSCI World ex-U.S. IMI Index Inception date: 25 September 2012

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 24 LADWP performance overview

30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% 2012 2013 2014 2015 2016 2017 2018 2019 YTD Since inception annualized Fund (gross) Fund (net) Benchmark

Fund (gross) Fund (net) Index Difference 2012 3.53% 3.52% 3.49% 0.03% 2013 22.00% 21.97% 21.57% 0.40% 2014 -4.13% -4.16% -4.45% 0.29% 2015 -1.62% -1.65% -1.95% 0.30% 2016 3.45% 3.42% 2.95% 0.47% 2017 25.71% 25.68% 25.17% 0.51% 2018 -14.30% -14.33% -14.68% 0.35% 2019 YTD 13.50% 13.49% 13.13% 0.36% Since inceptionannualized 6.17% 6.14% 5.75% 0.39% Source: BlackRock As of 31 July 2019 Benchmark is the MSCI World ex-U.S. IMI Index Inception date: 25 September 2012

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 25 LADWP 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 MSCI World ex-US IMI Index

As this is a passive portfolio, portfolio attribution of sectors is not applicable

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 26 LADWP 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 MSCI World ex-US IMI Index

As this is a passive portfolio, contributors/detractors are at index levels. There are no active over/underweights for attribution.

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 27 LADWP 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 MSCI World ex-US IMI 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 INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 28 5. Portfolio Review and Characteristics As of 31 July 2019 BlackRock MSCI World ex-U.S. IMI Index Fund Characteristics

Fund information Country allocation (%)

MSCI World ex USA IMI Net Benchmark Dividend Return Index Canada United 9.31 Total fund value $0.68B Kingdom 15.23 Number of issues in fund 3,568 France Japan 9.26 Number of issues in benchmark 3,564 22.74

Switzerland Top 10 holdings 7.71 Country Weight (%)

Nestle SA Switzerland 1.80

Novartis AG Switzerland 1.10 Germany 7.33 Finland 0.94 Roche Holding Par AG Switzerland 1.04 Australia 6.72 Norway 0.79 Hsbc Holdings PLC United Kingdom 0.91 Hong Kong 3.30 Israel 0.69 Netherlands 3.24 Ireland 0.46 Toyota Motor Corp Japan 0.84 Sweden 2.76 New Zealand 0.33 Spain 2.54 Austria 0.29 Royal Dutch Shell PLC United Kingdom 0.79 Italy 2.26 Portug al 0.16 Denmark 1.52 China 0.01 BP PLC United Kingdom 0.76 Singapore 1.29 Malt a 0.00 Belgium 1.11 Greece 0.00 AIA Group Ltd Hong Kong 0.71

Total SA France 0.71

SAP Germany 0.67

Fund inception date 25 September 2012 Data is used for analytical purposes only. Breakdowns may not sum to 100 percent due to rounding, exclusion of cash, STIF and statistically immaterial factors. Portfolio holdings are subject to change and are not intended as a recommendation of individual securities. Sources: BlackRock, MSCI Inc.

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BES-0181 30 Sector diversification

Sector weights Fund Index Difference

Communication Services 5.22 5.21 0.01

Consumer Discretionary 10.79 10.79 0.00

Consumer Staples 10.45 10.48 -0.03

Energy 6.19 6.17 0.02

Financials 19.14 19.11 0.03

Health Care 9.91 9.99 -0.08

Industrials 15.15 15.12 0.03

Information Technology 7.07 7.05 0.02

Materials 7.85 7.85 0.00

Real Estate 4.68 4.70 -0.02

Utilities 3.53 3.53 0.00

Source: BlackRock As of 31 July 2019

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 31 Country diversification

Country weights Fund Index Difference Australia 6.72 6.69 0.03 Austria 0.29 0.29 0.00 Belgium 1.11 1.11 0.00 Canada 9.32 9.26 0.06 Denmark 1.52 1.55 -0.03 Finland 0.94 0.93 0.01 France 9.26 9.21 0.05 Germany 7.33 7.48 -0.15 Greece 0.00 0.00 0.00 Hong Kong 3.31 3.29 0.02 Ireland 0.46 0.48 -0.02 Israel 0.69 0.69 0.00 Italy 2.26 2.25 0.01 Japan 22.74 22.64 0.10 Netherlands 3.24 3.22 0.02 New Zealand 0.33 0.33 0.00 Norway 0.79 0.79 0.00 Portugal 0.16 0.17 -0.01 Singapore 1.30 1.28 0.02 Spain 2.54 2.52 0.02 Sweden 2.76 2.74 0.02 Switzerland 7.71 7.89 -0.18 United Kingdom 15.24 15.21 0.03

Source: BlackRock As of 31 July 2019

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 32 Portfolio value

Water and Power Retirement Plan Initial valueas of 25 September 2012 $417,381,420

Contributions $18,000,000

Withdrawals $53,000,000

Interest* $290

Change in market value** $199,222,355

Market value as of 31 July 2019 $581,604,065

Retirement Health Benefits Fund Initial valueas of 25 September 2012 $60,887,594

Contributions $14,600,000

Withdrawals $10,000,000

Interest* $227

Change in market value** $32,403,292

Market value as of 31 July 2019 $97,891,113

Source: BlackRock As of 31 July 2019 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 July 2019

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 33 Portfolio characteristics

Characteristics breakdown Fund Index Be ta 0.99 0.99 Debt/capital 33.60 33.61 Dividend yield 3.25 3.25 DPS Grow th — 5 years (%) 8.97 8.94 Earnings Per Share — 5 year grow th 5.66 5.66 Earnings Per Share — 3-5 year grow th 8.56 8.56 % in Benchmark by total mkt cap 99.95 100.00 P/E using FY1 est 14.25 14.26 Price/book ratio 1.59 1.59 Price/cash flow ratio 8.05 8.06 P/earnings ratio (excl. neg.earnings) 14.86 14.87 P/earnings (incl. neg earnings) 16.51 16.55 Price/sales ratio 1.14 1.14 ROE 14.87 14.88 5 Year ROE 15.89 15.88 Median market capitalization ($B) 1.11 1.11 Weighted market capitalization (average) ($B) 44.83 45.07 Weighted median market capitalization ($B) 23.31 23.31 Average market capitalization ($B) 4.99 4.97 % Top 10 holdings 9.33 9.43

Source: BlackRock As of 31 July 2019

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 34 LADWP Diversification: Comparison of risk exposures to benchmark

The portfolio aims to fully replicate the index Risk exposures • Predicted (ex-Anti) Tracking Error: 0.03% Barra Style Factors (Standard Active Deviation) • Number of Stocks Held In Portfolio: 3,568 Market 0.00 • Beta: 1.0 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 July 2019

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 35 6. Fee Schedule LADWP Fee Schedule

LADWP Management Fee Schedule

Annual fee (bps)

2.8

As of 31 July 2019

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL 37 Appendix 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 the 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 jurisdiction. 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, Panama, 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 circumstances. 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 6.30.19 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 performance is no guarantee of future results.

BlackRock® is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners.

© 2019 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.

FOR USE WITH INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL ICBM0419U-797274-1/2 39 Important notes

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.

This material is not intended to be a recommendation or advice by BlackRock. If this material were construed to be a recommendation by BlackRock, BlackRock would seek to rely on Department of Labor Regulation Section 2510.3-21(c)(1). As such, by providing this material to you, a plan fiduciary that is independent of BlackRock, BlackRock does not undertake to provide impartial investment advice or give advice in a fiduciary capacity. Further, BlackRock receives revenue in the form of advisory fees for our mutual funds and exchange traded funds and management fees for our collective investment trusts.

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 prior written permission of BTC. The Fund’s net asset value does not include an accrual for the investment management fee but does include an accrual for fund level administrative costs and, if applicable, certain third party acquired fund fees and expenses. If the Fund’s net asset value did include an accrual for the investment management fee, the Fund’s returns would be lower. 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 not 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, prospectuses 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 in 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 . © 2019 BlackRock, Inc. All rights reserved. BLACKROCK is 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 INSTITUTIONAL INVESTORS ONLY - PROPRIETARY AND CONFIDENTIAL BESBES-0181-0181 40