International Growth
October 12, 2016
PRESENTATION TO: Los Angeles Department of Water & Power
For institutional use only. Table of Contents
1. FIAM Overview 2. FIAM International Growth Investment Process 3. Investment Performance & Positioning 4. Portfolio Review and Characteristics 5. International Growth Holdings by Region 6. Appendix A. Glossary B. Important Information C. GIPS Composite Performance Data D. Biographies
See “Important Information” for a discussion of performance data, some of the principal risks related to any of the investment strategies referred to in this presentation and other information related to this presentation. 2 For institutional use only. 201608-20423 FIAM Overview
For institutional use only. Fidelity Institutional Asset Management One organization designed to provide the best service experience in the institutional marketplace
FIAM Distribution • A gateway to Fidelity’s broad and deep institutional investment management products and capabilities in equity, fixed-income, high-income and global asset allocation serving institutional investors, consultants, and financial advisors.
• With more than $567 billion in assets under administration1, 497 institutional clients, and more than 50,000 financial advisor clients, Fidelity Institutional Asset Management is one of the largest organizations serving the U.S. institutional marketplace.
Fidelity’s Asset Management Resources
Equity Fixed Income Asset Allocation
• Fidelity relies on its proprietary • Fidelity offers a wide range of • Fidelity is a leading innovator of research, disciplined portfolio products that span a spectrum of asset allocation solutions for management, and sophisticated duration and credit quality to provide institutional clients. trading process to seek to deliver precise risk and return objectives. • More than $580 billion in assets superior long-term results for • More than $900 billion in assets under management, supported by shareholders and clients. under management, supported by over 100 dedicated research • More than $1.1 trillion in equity assets over 76 research professionals and 28 professionals. under management, supported by over traders. 214 equity research professionals.
All data as of 6/30/16. 1Assets Under Administration includes assets distributed through the FIAM business unit that may be managed by Fidelity affiliates or third parties. 4 For institutional use only. 201608-20423 Our Clients and Assets Serving a diversified client base across all major asset classes
Focused on serving corporate retirement plans, public plans, E&F, Taft-Hartley, sovereign entities, and central banks worldwide.
ASSETS
$139.5 $40.6B $75.1B $19.8B $3.9B BILLION1,2 International/ Fixed Income3 U.S. Equity Other4 Global Equity
CLIENT RELATIONSHIPS
497 221 92 133 28 23 CLIENTS Defined Defined Sub-Advised/SWF/ Endowments and Taft-Hartley Benefit Plans Contribution Plans Other Clients5 Foundations
Data is as of 6/30/16 and includes assets managed by FIAM LLC and Fidelity Institutional Asset Management Trust Company. All currency is in U.S. dollars. 1 Due to rounding, the total may not add up to 100% of total assets. 2 Assets under management include $29.3B of asset allocation assets, which may be invested in other FIAM or affiliated products. 3 Fidelity Investments total fixed income bond assets are $65.3B as of 6/30/16. 4 Includes real estate debt and REIT investment strategies. 5 Includes FIL Limited retail accounts, insurance accounts, high-net-worth accounts, VEBAs, and FIAM private investment funds. 5 For institutional use only. 201608-20423 Representative Clients Significant institutional experience and commitment
International Equity Client
MUNICIPAL/PUBLIC CORPORATE TAFT-HARTLEY
California State Teachers’ Retirement System Agilent Technologies Building Trades United Pension Fund
El Paso Fireman & Policemen’s Pension Fund American Honda Ironworkers Local 549-550 Pension Plan
Illinois Municipal Retirement Fund BASF Corporation PacifiCorp/IBEW Local Union 57
Marin County Employees’ Retirement Association Cox Enterprises Pipeline Industry Benefit Fund
Minnesota State Board of Investment General Motors Sheet Metal Workers Local No. 19
New Mexico Educational Retirement Board Kinder Morgan
New York City Police Pension Fund Lexmark International
Orange County Employees' Retirement System Northern Trust ENDOWMENT/FOUNDATION Oregon Investment Council PPL Corporation
San Francisco Employees' Retirement System Saint-Gobain Corporation Massachusetts Taxpayers Foundation
San Mateo County Employees’ Retirement Association Verizon
St. Louis Public School Retirement System
State of Alabama
State of Michigan Retirement System
Tulare County Employees' Retirement Association
As of 06/30/16. This list is made up of FIAM’s clients, chosen through a combination of geographic location, size, and plan type, if applicable, who have consented to disclosing their names. It is not known whether the listed clients approve or disapprove of FIAM or the advisory services provided. 6 For institutional use only. 201608-20423 682476.12.0 FIAM International Growth Investment Process
For institutional use only. FIAM International Growth Portfolio Management
TOTAL PORTFOLIO
Chris Steward Brian Hoesly Co-Lead Portfolio Manager Co-Lead Portfolio Manager Industry: 1987 Industry: 1989 FIAM: 2006 FIAM: 2006
REGIONAL SUB-PORTFOLIOS
Europe Growth Asia Growth Canada Growth
Peter Hadden Eileen Dibb Joe Overdevest Portfolio Manager Portfolio Manager Portfolio Manager Industry: 1988 Industry: 1996 Industry: 2002 FIAM: 2005 FIAM/Fidelity: 2005 FIAM: 2002
ASSOCIATE PORTFOLIO MANAGERS
Europe Growth Japan Growth Pacific Basin ex-Japan Growth
Jonathan Cummins Camille Carlstrom Bruce MacDonald Associate Portfolio Associate Portfolio Associate Portfolio Manager/Analyst Manager/Analyst Manager/Analyst Industrials Financials Industrials Industry: 1998; FIAM: 2008 Industry: 1992; FIAM: 2012 Industry: 1995; FIAM: 2012
Illustration does not indicate reporting hierarchy. As of 6/30/16. 8 For institutional use only. 201608-20423 683246.19.0 FIAM International Growth Aligned Resources
Europe Asia Canada
Japan Pacific Basin Ex-Japan
Associate Portfolio Managers/Analysts
Jonathan Cummins Bruce MacDonald Camille Carlstrom Associate Portfolio Manager/Analyst Associate Portfolio Manager/Analyst Associate Portfolio Manager/Analyst Industrials Industrials Financials London Hong Kong
Product Analysts
Phillip Clark Fei Chen Tom Quarmby Access to 11 Canadian Consumer Discretionary Industrials, Materials Financials Fundamental Analysts London Robert Lee Consumer Discretionary Hong Kong
Benny Lo Technology Hong Kong
Illustration does not indicate reporting hierarchy. As of 6/30/16. 9 For institutional use only. 201608-20423 683246.19.0 FIAM International Growth Investment Process
FIAM/FIDELITY REGIONAL PORTFOLIO FUNDAMENTAL RESEARCH MANAGEMENT LEAD PORTFOLIO MANAGEMENT TEAM
Ongoing Coverage Stock Selection of > 1,800 non-U.S. Stocks Asset Allocation Regional Portfolio International Construction Opinions Maintained Total Portfolio Growth on All Stocks Covered Portfolio Identify Best Level Risk Portfolio Candidates Management Deep Sector Expertise
• Total Portfolio Oversight • >5,000 in-house company • Experienced Regional • Client Focused Resource visits annually Portfolio Managers • Assisted by Associate PMs • >20,000 non-U.S. research and Product Analysts aligned notes published annually with the portfolio
For illustrative purposes only. 10 For institutional use only. 201608-20423 683246.19.0 International Growth Asset Allocation Process
• Lead PM team determines regional asset allocation utilizing Fidelity’s broad and deep resources
• Qualitative inputs are the primary focus, leveraging Fidelity’s vast global network of research analysts, supported by quantitative and technical inputs – Economic Insight from Locally Based Research • Utilize vast fundamental research resources of the Fidelity global enterprise • Capitalize on the competitive strength of the firm–fundamental research • Generate insights across the global supply chain
– Unique Regional Perspective Combining Portfolio Management and Macroeconomic Research • Integrate views of International Growth regional PMs and other regional experts • Employ the macroeconomic modeling and expertise of FMR’s Asset Allocation Research Team (AART) • Incorporate macroeconomic views from outside experts including brokers and independent research providers
– Quantitative Inputs • Equity valuation metrics, bond market trends, interest-rate forecasts, and currency trends • Regular technical analysis meetings with International Growth Team to examine trends in markets, currencies, and stocks
11 For institutional use only. 201608-20423 Fidelity Equity Research Coverage Spans the Globe
Americas Equity Europe Middle East Africa Asia Pacific Equity Total Number of Equity Coverage Equity Coverage Coverage Research Professionals Market Cap Covered (USD) $24.7 trillion $10.0 trillion $9.4 trillion 214 # of Stocks Rated 2,183 891 1,157
Leveraging the Work of Over 400 Research Professionals Around the Globe at Fidelity
Local market coverage Proprietary research 152 61 3 30 Equity Equity 15 Fixed Income High Fixed 12 23 Research professionals Income Income Asset manage paper/sector/ 26 3 Allocation Equity 9 98 Equity industry portfolios High Income Asset Allocation Asset Allocation
PACIFIC NORTH AMERICA EUROPEEX-JAPAN JAPAN
Research professionals include research analysts and associates as of 6/30/16. Market Cap Covered reflects the aggregate market capitalization of securities for which FIAM and FMRCo analysts and associates provided at least one rating during the prior three months. Represents coverage of free float-adjusted index. Calculation of Market Cap Covered is based on Total Market Cap across indices and cannot be adjusted for free-float. 12 For institutional use only. 201608-20423 700001.10.0 International Growth—Investment Parameters
Factors Parameters
Regional weights Benchmark weight 5.0%
Country weights Benchmark weight 5.0%
Industry group weights Benchmark weight 10.0%
Security weights Benchmark weight 3.0%
Market capitalization Benchmark weighted average 15.0%
Benchmark is MSCI World x US IMI (N). 13 For institutional use only. 201608-20423 Investment Performance & Positioning
For institutional use only. International Growth—Investment Results As of August 31, 2016
Cumulative Return (%) Annualized Return (%)
Since TNA Portfolio/Index QTD YTD 1-Year 3-Year 5-Year 10-Year Inception ($Mil) 11/15/2004 LA Water & Power—IG Group (Gross) 3.73 (0.31) (0.23) 2.87 5.61 3.10 5.45 480.8 MSCI EAFE (N)/ World x US IMI 5.02 2.21 1.30 2.72 4.67 2.03 4.50 Active Return (Gross) (1.29) (2.52) (1.53) 0.15 0.94 1.07 0.95
LA Water & Power—IG Group (Net) 3.68 (0.50) (0.51) 2.59 5.31 2.78 5.13 MSCI EAFE (N)/ World x US IMI 5.02 2.21 1.30 2.72 4.67 2.03 4.50 Active Return (Net) (1.34) (2.71) (1.81) (0.13) 0.64 0.75 0.63
LA Water & Power—IG Group (Net) 3.68 (0.50) (0.51) 2.59 5.31 2.78 5.13 MSCI EAFE (N)/ World x US IMI Growth 3.48 2.52 4.25 4.79 5.71 2.67 5.05 Active Return (Net) 0.20 (3.02) (4.76) (2.20) (0.40) 0.11 0.08
10.00 5.02 5.61 4.67 5.45 4.50 3.73 2.87 2.72 3.10 5.00 2.21 1.30 2.03 0.00 (0.31) (0.23) (5.00) (10.00)
QTD YTD 1-Year 3-Year 5-Year 10-Year Since Inception 11/15/2004 LA Water & Pow er—Intl Grow th (Gross) MSCI EAFE (N)/ World x US IMI
(N)= Net Dividend Withholding Taxes Client data shown. Performance shown is gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. Net performance is less the advisory fee charged; other fees and expenses may reduce returns. Past performance is no guarantee of future results. The performance of the pool contains prices that may have been fair valued due to significant market events that have occurred after the close of the local market. Therefore, the pool performance does include the impact of the fair valuation process. The last local sales price may not be the fair market value of the security at 4:00 p.m. Eastern time. This is the time generally used by FIAM to value all of its clients' portfolios based on the close of the New York Stock Exchange. Federal securities laws and related guidance generally require that these securities must be priced at fair value. This process may cause the prices of the securities, used by a portfolio to calculate its NAV, to be different from the benchmark which is calculated using latest local closing prices. The initial investment in the LA Water and Power - International Growth account was $266.7M. Due to transactions and market activity the total net assets of the account were $480.84M as of 8/31/16. 15 For institutional use only. 201608-20423 International Growth—Regional Results (Gross) As of August 31, 2016
Cumulative Return (%) Annualized Return (%)
Since Portfolio/Index QTD YTD 1-Year 3-Year 5-Year 10-Year Inception 11/15/2004 LA Water & Power—Europe (Gross) 4.07 (3.81) (5.01) 1.74 5.59 2.99 5.42 MSCI Eur/MSCI Eur & ME(N) 4.46 (0.99) (3.25) 1.53 4.79 1.45 4.03 Active Return (Gross) (0.39) (2.82) (1.76) 0.21 0.80 1.54 1.39
LA Water & Power—Japan (Gross) 2.32 (0.16) 3.13 5.03 8.13 1.07 3.36 MSCI Japan (N) 6.89 0.93 2.85 5.57 6.66 0.72 3.29 Active Return (Gross) (4.57) (1.09) 0.28 (0.54) 1.47 0.35 0.07
LA Water & Power—Pac Basin ex Japan (Gross) 4.82 7.01 15.55 3.61 2.82 6.02 8.51 MSCI Pac Basin ex Japan (N) 5.38 7.99 12.67 1.80 3.14 5.53 7.50 Active Return (Gross) (0.56) (0.98) 2.88 1.81 (0.32) 0.49 1.01
LA Water & Power—Canada* (Gross) 3.59 18.64 7.90 5.52 5.38 -- 13.24 MSCI Canada (N) 3.70 19.32 7.88 (0.25) (0.93) -- 7.82 Active Return (Gross) (0.11) (0.68) 0.02 5.77 6.31 -- 5.42
(*) LOF is annualized since inception 1/27/09. (N)= Net Dividend Withholding Taxes Client data shown. Performance shown is gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. Past performance is no guarantee of future results. The performance of the pool contains prices that may have been fair valued due to significant market events that have occurred after the close of the local market. Therefore, the pool performance does include the impact of the fair valuation process. The last local sales price may not be the fair market value of the security at 4:00 p.m. Eastern time. This is the time generally used by FIAM to value all of its clients' portfolios based on the close of the New York Stock Exchange. Federal securities laws and related guidance generally require that these securities must be priced at fair value. This process may cause the prices of the securities, used by a portfolio to calculate its NAV, to be different from the benchmark which is calculated using latest local closing prices. 16 For institutional use only. 201608-20423 International Growth—Investment Results Currency Effect One Year Ended August 31, 2016
Portfolio/Index USD Return (%) Local Currency Return (%) Currency Effect (%)
LA Water & Power—IG Group (Gross) (0.23) (0.76) 0.53 MSCI World ex US IMI (N) 1.30 0.43 0.87 Active Return (Gross) (1.53) (1.19) (0.34)
LA Water & Power—Europe (Gross) (5.01) 0.38 (5.39) LA Water & Power—Japan (Gross) 3.13 (11.62) 14.75 LA Water & Power—Pac Basin ex Japan (Gross) 15.55 11.12 4.43 LA Water & Power—Canada (Gross) 7.90 6.56 1.34
(N)= Net Dividend Withholding Taxes Client data shown. Performance shown is gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. Past performance is no guarantee of future results. The performance of the pool contains prices that may have been fair valued due to significant market events that have occurred after the close of the local market. Therefore, the pool performance does include the impact of the fair valuation process. The last local sales price may not be the fair market value of the security at 4:00 p.m. Eastern time. This is the time generally used by FIAM to value all of its clients' portfolios based on the close of the New York Stock Exchange. Federal securities laws and related guidance generally require that these securities must be priced at fair value. This process may cause the prices of the securities, used by a portfolio to calculate its NAV, to be different from the benchmark which is calculated using latest local closing prices. 17 For institutional use only. 201608-20423 International Growth RHBF—Investment Results As of August 31, 2016
Cumulative Return (%) Annualized Return (%)
Since Portfolio/Index QTD YTD 1-Year 3-Year 5-Year Inception TNA ($Mil) 9/10/2009 LAWP RHBF—Intl Growth (Gross) 3.72 (0.28) (0.16) 2.89 5.62 5.61 81.0 MSCI EAFE (N)/ World x US IMI 5.02 2.21 1.30 2.72 4.67 4.46 Active Return (Gross) (1.30) (2.49) (1.46) 0.17 0.95 1.15
LAWP RHBF—Intl Growth (Net) 3.67 (0.46) (0.42) 2.74 5.39 5.35 MSCI EAFE (N)/ World x US IMI 5.02 2.21 1.30 2.72 4.67 4.46 Active Return (Net) (1.35) (2.67) (1.72) 0.02 0.72 0.89
LAWP RHBF—Intl Growth (Net) 3.67 (0.46) (0.42) 2.74 5.39 5.35 MSCI EAFE (N)/ World x US IMI Growth 3.48 2.52 4.25 4.79 5.71 6.17 Active Return (Net) 0.19 (2.98) (4.67) (2.05) (0.32) (0.82)
10.00 5.02 5.624.67 5.61 4.46 3.72 2.89 2.72 5.00 2.21 1.30 0.00 (0.28) (0.16) (5.00) (10.00) QTD YTD 1-Year 3-Year 5-Year Since Inception 9/10/2009 LAWP RHBF—Intl Grow th (Gross) MSCI EAFE (N)/ World x US IMI
(N)= Net Dividend Withholding Taxes Client data shown. Performance shown is gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. Net performance is less the advisory fee charged; other fees and expenses may reduce returns. Past performance is no guarantee of future results. The performance of the pool contains prices that may have been fair valued due to significant market events that have occurred after the close of the local market. Therefore, the pool performance does include the impact of the fair valuation process. The last local sales price may not be the fair market value of the security at 4:00 p.m. Eastern time. This is the time generally used by FIAM to value all of its clients' portfolios based on the close of the New York Stock Exchange. Federal securities laws and related guidance generally require that these securities must be priced at fair value. This process may cause the prices of the securities, used by a portfolio to calculate its NAV, to be different from the benchmark which is calculated using latest local closing prices. The initial investment in the LA Water and Power RHBF- International Growth account was $39.06M. Due to transactions and market activity the total net assets of the account were $80.97M as of 8/31/16. 18 For institutional use only. 201608-20423 International Growth RHBF—Regional Results As of August 31, 2016
Cumulative Return (%) Annualized Return (%)
Since Portfolio/Index QTD YTD 1-Year 3-Year 5-Year Inception 9/10/2009 LAWP RHBF—Europe (Gross) 4.07 (3.83) (5.02) 1.74 5.58 5.05 MSCI Eur/MSCI Eur & ME (N) 4.46 (0.99) (3.25) 1.53 4.79 3.77 Active Return (Gross) (0.39) (2.84) (1.77) 0.21 0.79 1.28
LAWP RHBF—Japan (Gross) 2.33 (0.01) 3.32 5.04 8.14 6.68 MSCI Japan (N) 6.89 0.93 2.85 5.57 6.66 4.66 Active Return (Gross) (4.56) (0.94) 0.47 (0.53) 1.48 2.02
LAWP RHBF—Pac Basin ex Japan (Gross) 4.81 7.08 15.86 3.71 2.86 4.92 MSCI Pac Basin ex Jpn (N) 5.38 7.99 12.67 1.80 3.14 5.55 Active Return (Gross) (0.57) (0.91) 3.19 1.91 (0.28) (0.63)
LAWP RHBF—Canada (Gross) 3.50 18.85 8.09 5.58 5.38 8.36 MSCI Canada (N) 3.70 19.32 7.88 (0.25) (0.93) 2.67 Active Return (Gross) (0.20) (0.47) 0.21 5.83 6.31 5.69
(N)= Net Dividend Withholding Taxes Client data shown. Performance shown is gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. Past performance is no guarantee of future results. The performance of the pool contains prices that may have been fair valued due to significant market events that have occurred after the close of the local market. Therefore, the pool performance does include the impact of the fair valuation process. The last local sales price may not be the fair market value of the security at 4:00 p.m. Eastern time. This is the time generally used by FIAM to value all of its clients' portfolios based on the close of the New York Stock Exchange. Federal securities laws and related guidance generally require that these securities must be priced at fair value. This process may cause the prices of the securities, used by a portfolio to calculate its NAV, to be different from the benchmark which is calculated using latest local closing prices. 19 For institutional use only. 201608-20423 4Q16 Outlook
Our long-term outlook continues to be for modest global growth with areas of strength and areas of weakness
Longer-term impact of Brexit on longer-term GDP growth is uncertain
U.S. Fed action; pace of tightening? • The Fed has already scaled back its expected rate of tightening
• Job creation growth rates and inflation are likely to remain the key indicators of tightening pace
Europe: slow recovery backed by accommodative ECB • ECB quantitative easing program expected for all of 2016
• Weakness in the euro and the U.K. pound
Japan GDP growth likely to be modestly better in 2016 • Accommodative monetary policy likely to continue into expected elections
• Accommodative fiscal policy in the form of a supplementary budget
• Consumption tax hike postponed until October 2019
20 For institutional use only. 201608-20423 4Q16 Outlook, continued
Chinese economic growth and policy dominate the Pacific Basin growth outlook • Monitoring Chinese government policy reaction is key, although some signs of renewed economic activity are beginning to appear
• Despite lingering excess production capacity, any rebound in commodity prices will ease many pressures for Chinese companies
Risks • Brexit negotiations
• Middle East Unrest/Continued Migration into Europe
• Global Recession
• U.S. Presidential Elections
21 For institutional use only. 201608-20423 International Growth—LADWP Contributions and Withdrawals
LADWP Contributions and Withdrawals Comment Date Client Name Account Name Funding 1/26/2009 LA Water & Power Retirement Plan LA Water & Power $231,088,343.00 Securities in Kind Contribution 10/11/2010 LA Water & Power Retirement Plan LA Water & Power $23,318,478.00 Rebalancing 2/9/2012 LA Water & Power Retirement Plan LA Water & Power $17,617,465.00 Rebalancing Withdrawal 8/16/2013 LA Water & Power Retirement Plan LA Water & Power ($23,000,000.00) Securities in Kind Withdrawal 7/24/2015 LA Water & Power Retirement Plan LA Water & Power ($21,018,426) Securities in Kind Withdrawal 1/7/2016 LA Water & Power Retirement Plan LA Water & Power ($24,000,000) Change in Market Value $276,834,460.85 August 31, 2016 Market Value $480,840,321.11
LADWP RHBF Contributions and Withdrawals Comment Date Client Name Account Name Funding 9/11/2009 LA Water & Power Retirement Plan LA Water & Power RHBF $38,626,332.00 Funding 9/14/2009 LA Water & Power Retirement Plan LA Water & Power RHBF $437,500.00 Contribution 7/2/2010 LA Water & Power Retirement Plan LA Water & Power RHBF $7,000,000.00 Contribution 7/22/2010 LA Water & Power Retirement Plan LA Water & Power RHBF $13,500,000.00 Securities in Kind Withdrawal 9/28/2010 LA Water & Power Retirement Plan LA Water & Power RHBF ($4,097,001.00) Rebalancing Withdrawal 2/7/2012 LA Water & Power Retirement Plan LA Water & Power RHBF ($1,000,000.00) Rebalancing Contribution 8/23/2013 LA Water & Power Retirement Plan LA Water & Power RHBF $7,100,000.00 Securities in Kind Withdrawal 7/24/2015 LA Water & Power Retirement Plan LA Water & Power RHBF ($5,004,391) Securities in Kind Withdrawal 1/7/2016 LA Water & Power Retirement Plan LA Water & Power RHBF ($3,500,000) Change in Market Value $27,912,493.25 August 31, 2016 Market Value $80,974,933.67
Client data shown. 22 For institutional use only. 201608-20423 International Growth—Total Return Rank (Gross) As of June 30, 2016
MRQ YTD 1 year 3 years 5 years 10 years
Return Rank Return Rank Return Rank Return Rank Return Rank Return Rank FIAM: International Growth (Gross) (0.84) 32 (3.38) 46 (8.52) 41 2.93 54 3.36 33 3.62 25 MSCI EAFE + Canada (N) Index (1.05) 35 (2.98) 40 (9.84) 58 1.88 78 1.23 88 1.63 84
Data indicating the relative ranking of FIAM’s strategy is from eVestment Alliance as of 6/30/16 and is based on a total of 123 investment products within this category with at least 85 percent of investment managers reporting. Composite account Information is shown. Performance shown is gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. See the GIPS Composite Performance Data for annual performance figures that are net of the maximum advisory fee charge any client employing this strategy. All figures shown are in USD. Supplemental information is complemented by the GIPS Composite Performance Data. Data and information from third-party databases, such as those sponsored by eVestment Alliance and Callan, are self-reported by investment management firms that generally pay a subscription fee to use such databases, and the database sponsors do not guarantee or audit the accuracy, timeliness or completeness of the data including any rankings. Rankings or similar data reflect information at the time rankings were retrieved from a third-party database, and such rankings may vary significantly as additional data from managers are reported. FIAM has not verified and cannot verify the accuracy of information from outside sources, and potential investors should be aware that such information is subject to change without notice. Past performance is no guarantee of future results. Source: Ranks: eVestment Alliance (International Growth World ex-US Composite), Attribution: FMR using International Growth World ex-US representative account. Performance: Total composite. Performance shown is gross of any fees and expenses, including advisory fees, which when deducted will reduce returns.
23 For institutional use only. 201608-20423 International Growth—Attribution by Region As of August 31, 2016
International Growth Europe Japan Pacific ex Japan Canada
One Year Regional Allocation (0.0) (0.1) 0.0 0.0 (0.0)
One Year Stock Selection (0.7) 0.0 0.1 0.3 (1.1)
Regional Allocations
INTERNATIONAL GROWTH MSCI WORLD EX-US IMI (N)
8.2 8.7
11.4 11.2
58.5 58.4 21.9 21.7
Europe Japan Pac Basin ex-Japan Canada Europe Japan Pac Basin ex-Japan Canada
Client data shown. 24 For institutional use only. 201608-20423 International Growth—Top Contributors and Detractors One Year Ended August 31, 2016
TOP CONTRIBUTORS Portfolio Benchmark Average Active Relative Total Relative Security Average Average Sector Weight (%) Return (%) Contribution (%) Weight (%) Weight (%) LUNDIN PETROLEUM AB 0.8 0.0 0.8 (0.1) 23 ENERGY PARTNERS GROUP HOLDING AG 0.7 0.0 0.6 (0.4) 22 FINANCIALS SAP SE 1.1 0.5 0.6 (1.4) 21 INFORMATION TECHNOLOGY BARCLAYS PLC ORD 0.0 0.3 (0.3) 42.1 19 FINANCIALS BAYER AG 0.3 0.6 (0.3) 23.6 18 HEALTH CARE MISUMI GROUP INC 0.5 0.0 0.4 (0.0) 17 INDUSTRIALS RANDGOLD RESOURCES LTD 0.5 0.1 0.4 (0.1) 16 MATERIALS HEIDELBERGCEMENT AG 0.9 0.1 0.8 (0.1) 15 MATERIALS RYMAN HEALTHCARE GROUP LTD 0.4 0.0 0.4 (0.3) 14 HEALTH CARE CREDIT SUISSE GROUP AG 0.0 0.2 (0.2) 47.6 14 FINANCIALS
TOP DETRACTORS
Portfolio Benchmark Average Active Relative Total Relative Security Average Average Sector Weight (%) Return (%) Contribution (%) Weight (%) Weight (%) UNICREDIT SPA 0.4 0.1 0.2 (8.5) (29) FINANCIALS TRAVIS PERKINS PLC 0.5 0.0 0.5 (15.9) (27) INDUSTRIALS DIXONS CARPHONE PLC 0.3 0.0 0.3 (19.6) (26) CONSUMER DISCRETIONARY LLOYDS BANKING GROUP PLC 0.9 0.4 0.5 (9.1) (25) FINANCIALS NOVARTIS AG 1.7 1.2 0.5 (0.7) (23) HEALTH CARE ITV PLC 0.5 0.1 0.5 (14.5) (22) CONSUMER DISCRETIONARY INTERNATIONAL CONS AIRLS GROUP 0.5 0.0 0.4 (6.6) (21) INDUSTRIALS SOCIETE GENERALE SA CL A 0.9 0.2 0.7 (1.2) (19) FINANCIALS AMEC FOSTER WHEELER PLC 0.2 0.0 0.2 (7.3) (17) ENERGY BRITISH LAND CO PLC 0.6 0.1 0.5 0.0 (17) REAL ESTATE
Client data shown. Past performance is no guarantee of future results. Holdings data shown does not represent all of the securities purchased, sold, or recommended and may change at any time. Portfolio weights are rounded and a zero weight represents either no holding or a very small weight. Contact FIAM for more information about the portfolio data calculations and for complete holdings information. Benchmark is MSCI EAFE/Wrld x US IMI (N). 25 For institutional use only. 201608-20423 International Growth—Sector Attribution One Year Ended August 31, 2016
Sector Relative Weight (%) Stock Selection (bps) Sector Selection (bps) Total Contribution (bps)
Financials (0.1) 65 (6) 59
Energy (0.4) 24 3 27
Health Care 1.7 28 (19) 9
Information Technology (0.1) 5 2 7
Consumer Discretionary (0.1) (3) (2) (5)
Utilities 0.1 (10) (4) (14)
Materials (0.8) 7 (23) (17)
Telecommunication Services 1.9 (6) (11) (17)
Real Estate (2.1) (55) (18) (74)
Consumer Staples 0.2 (60) (14) (74)
Industrials (2.7) (71) (16) (87)
Client data shown. Past performance is no guarantee of future results. Benchmark is MSCI EAFE/Wrld x US IMI (N). 26 For institutional use only. 201608-20423 Portfolio Review and Characteristics
For institutional use only. International Growth—Top 10 Holdings As of August 31, 2016
Holdings % of Portfolio
ROCHE HLDGS AG 2.1
ROYAL DUTCH SHELL PLC 2.1
UNILEVER NV CVA 1.8
ANHEUSER BUSCH INBEV NV 1.7
BAYER AG 1.4
DIAGEO PLC 1.3
RECKITT BENCKISER GROUP PLC 1.2
SAP SE 1.2
SOCIETE GENERALE SA CL A 1.1
SANOFI 1.1
Total 15.0
Client data shown. Past performance is no guarantee of future results. Holdings data shown does not represent all of the securities purchased, sold, or recommended to clients and may change at anytime. 28 For institutional use only. 201608-20423 International Growth—Top 10 Active Weights As of August 31, 2016
Top 10 Positive Active* Top 10 Negative Active* Holdings Holdings (%) (%)
UNILEVER NV CVA 1.3 NESTLE SA (1.3)
ANHEUSER BUSCH INBEV NV 1.1 BRITISH AMERICAN TOBACCO PLC (0.7)
ROCHE HLDGS AG 1.0 TOTAL SA (0.7)
SOCIETE GENERALE SA CL A 1.0 GLAXOSMITHKLINE PLC (0.7)
RECKITT BENCKISER GROUP PLC 0.9 BP PLC (0.7)
DIAGEO PLC 0.9 NOVO-NORDISK AS CL B (0.6)
ROYAL DUTCH SHELL PLC 0.8 ASTRAZENECA PLC (0.5)
KONINKLIJKE AHOLD DELHAIZE NV 0.8 BASF SE (0.5)
BAYER AG 0.8 ALLIANZ SE (0.4)
GALP ENERGIA SGPS SA 0.8 DAIMLER AG (0.4)
Total 9.3 Total (6.5)
*Relative to the MSCI EAFE/Wrld x US IMI (N). Client data shown. Not representative of manager’s entire portfolio or all recommendations. Not a recommendation or offer to buyor sell securities. Past performance is no guarantee of future results. 29 For institutional use only. 201608-20423 International Growth—Sector Relative Weights As of August 31, 2016
ACTIVE WEIGHT VERSUS INDEX* (%)
1.5 1.2 1.5 1.2 1.0 1.0 1.0 0.7 0.5 1.0 0.7 0.5 0.5 0.5 0.0 (0.1) 0.0 (0.1) (0.1) (0.5) (0.3) (0.1) (0.1) (0.1) (1.0)(0.5) (0.3)
(1.5)(1.0)
Percent Active ActivePercent Percent Weight Weight (1.5) (2.0) (1.7) (1.5) (2.1) (2.5) (1.5) (2.0) (1.7) Energy Utilities Materials Financials Industrials Real Estate Real Health Care Health Consumer Staples Consumer Information Technology Information Consumer Discretionary Consumer Telecommunication Services Telecommunication
*Relative to the MSCI EAFE/Wrld x US IMI (N). Client data shown. 30 For institutional use only. 201608-20423 International Growth—Regional and Country Allocations As of August 31, 2016
REGIONAL ALLOCATION
Portfolio Weight (%) Benchmark (N) (%)* Difference
Europe 58.5 58.4 0.1
Japan 21.9 21.7 0.2
Pacific ex Japan 11.4 11.2 0.2
Canada 8.2 8.7 (0.4)
ACTIVE WEIGHT VERSUS INDEX* (%)
2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 Italy Israel Spain Japan Ireland France Austria Finland Norway Canada Belgium Sweden Portugal Australia Denmark Germany Singapore Hong Kong Switzerland Netherlands New Zealand United Kingdom
*Benchmark is MSCI EAFE/Wrld x US IMI Index (N). Client data shown. 31 For institutional use only. 201608-20423 International Growth—Market Cap Distribution (USD) As of August 31, 2016
30
25
20
% 15
10
5
0 1b to 2b 2b to 5b 5b to 10b 0.5b to 1b 10b to 20b 20b to 50b Below 0.2b 50b to 100b 0.2b to 0.5b Above 100b $
Portfolio Benchmark
Client data shown. Benchmark is MSCI EAFE/Wrld x US IMI Index (N). 32 For institutional use only. 201608-20423 International Growth—Portfolio Characteristics As of August 31, 2016
Characteristics Portfolio MSCI World ex-US IMI (N)
Dividend Yield 2.9% 3.3%
Weighted Avg. Market Cap (U.S. $ billion) $49.8 $52.6
Price/Earnings (1-year historical) 20.4x 20.8x
Price/Earnings (1-year forward)* 15.8x 15.0x
Price/Book Value 2.0x 1.7x
Price/Sales 1.4x 1.2x
Price/Cash Flow 10.3x 9.3x
Return on Equity (5-year) 16.0% 14.1%
Earnings Growth (1-year forecast) 29.1% 23.3%
* IBES forecast Client data shown. 33 For institutional use only. 201608-20423 International Growth—Risk Measures As of August 31, 2016
Risk Measures Portfolio RISK/RETURN CHARACTERISTICS 1-yr Turnover 63% Periods Ended August 31, 2016
Standard Deviation 12.61 3.50
Sharpe Ratio 0.22 3.00 International Growth MSCI EAFE (N)/
Ann Alpha 0.24 (Gross) World x US IMI 2.50 Ann Information Ratio 0.09 2.00 Ann Tracking Error 1.74 1.50 Beta 0.96 1.00 Correlation Coefficient 0.99 0.50
R-Squared 0.98 Return 3-yr Annual Average
Relative Volatility 0.97 0.00 12.50 12.60 12.70 12.80 12.90 13.00 13.10 13.20 Treynor Ratio 2.91 Average Annual 3-yr Standard Deviation % Value-at-Risk (0.06)
Jensen Alpha 0.26
Client data shown. Performance shown is gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. Past performance is no guarantee of future results. 34 For institutional use only. 201608-20423 International Growth Holdings by Region
For institutional use only. International Growth Holdings by Region* Index End Region Country Sector Security name Fund End Weight Weight Canada CANADA FINANCIALS ROYAL BANK OF CANADA 0.78 0.59 Canada CANADA FINANCIALS TORONTO-DOMINION BANK 0.71 0.53 Canada CANADA FINANCIALS BANK OF NOVA SCOTIA 0.64 0.41 Canada CANADA INDUSTRIALS CANADIAN NATL RAILWAY CO 0.44 0.32 Canada CANADA ENERGY CANADIAN NATL RESOURCES LTD 0.38 0.22 Canada CANADA ENERGY TRANSCANADA CORP 0.38 0.21 Canada CANADA FINANCIALS BROOKFIELD ASSET INC VTG CL A 0.30 0.19 Canada CANADA FINANCIALS SUN LIFE FINANCIAL INC 0.29 0.12 Canada CANADA CONSUMER STAPLES ALIMENTATION COUCH CL B SUBVTG 0.29 0.14 Canada CANADA TELECOMMUNICATION SERVICES BCE INC 0.21 0.04 Canada CANADA CONSUMER DISCRETIONARY RESTAURANT BRANDS INTRNTNL INC 0.18 0.07 Canada CANADA MATERIALS TECK RESOURCES LTD SUB VTG CLB 0.17 0.06 Canada CANADA UTILITIES HYDRO ONE LIMITED 0.17 0.02 Canada CANADA ENERGY ARC RESOURCES LTD 0.17 0.04 Canada CANADA INFORMATION TECHNOLOGY CGI GROUPE INC CL A SUB VTG 0.16 0.07 Canada CANADA ENERGY SEVEN GENERATIONS ENERGY LTD 0.16 0.03 Canada CANADA FINANCIALS NATIONAL BANK OF CANADA DTC EL 0.16 0.08 Canada CANADA CONSUMER STAPLES LOBLAW COS LTD 0.15 0.08 Canada CANADA MATERIALS BARRICK GOLD CORP 0.15 0.13 Canada CANADA FINANCIALS INTACT FINL CORP 0.15 0.06 Canada CANADA INFORMATION TECHNOLOGY CONSTELLATION SOFTWARE INC 0.14 0.05 Canada CANADA INDUSTRIALS WASTE CONNECTIONS INC 0.13 0.00 Canada CANADA ENERGY PRAIRIESKY ROYALTY LTD 0.11 0.03 Canada CANADA MATERIALS SILVER WHEATON CORP (CANA) 0.10 0.07 Canada CANADA MATERIALS FRANCO-NEVADA CORP (CANA) 0.10 0.08 Canada CANADA ENERGY PEYTO EXPL & DEV CORP NEW 0.10 0.03 Canada CANADA MATERIALS AGNICO EAGLE MINES LTD (CANA) 0.10 0.07 Canada CANADA ENERGY RAGING RIVER EXPLORATION INC 0.10 0.01 Canada CANADA ENERGY SUNCOR ENERGY INC 0.09 0.29 Canada CANADA CONSUMER DISCRETIONARY DOLLARAMA INC 0.09 0.05 Canada CANADA CONSUMER DISCRETIONARY UNI-SELECT INC 0.09 0.01 Canada CANADA MATERIALS CCL INDUSTRIES INC B NON VTG 0.07 0.03 Canada CANADA REAL ESTATE FIRST CAPITAL REALTY INC 0.05 0.01 Canada CANADA HEALTH CARE KNIGHT THERAPEUTICS INC 0.05 0.00 Canada CANADA ENERGY VERESEN INC 0.05 0.02 Canada CANADA REAL ESTATE SMART REAL ESTATE INVEST TRUST 0.05 0.01 Canada CANADA INFORMATION TECHNOLOGY KINAXIS INC 0.05 0.01 Canada CANADA ENERGY SPARTAN ENERGY CORP 0.04 0.01 Canada CANADA ENERGY PARKLAND FUEL CORP 0.04 0.01 Canada CANADA MATERIALS KLONDEX MINES LTD 0.04 0.00 Canada CANADA INDUSTRIALS TOROMONT INDUSTRIES LTD 0.04 0.02 Canada CANADA CONSUMER DISCRETIONARY SLEEP COUNTRY CANADA HLDGS INC 0.04 0.00 Canada CANADA CONSUMER STAPLES COTT CORP 0.04 0.01 Canada CANADA CONSUMER STAPLES SAPUTO INC 0.03 0.05 Canada CANADA REAL ESTATE CANADIAN APT PPTY REIT TR UNIT 0.03 0.01 Canada CANADA INFORMATION TECHNOLOGY SHOPIFY INC CL A 0.03 0.02 Canada CANADA ENERGY PAREX RESOURCES INC 0.02 0.01 Canada CANADA INDUSTRIALS BADGER DAYLIGHTING INC 0.02 0.00 Canada CANADA MATERIALS DETOUR GOLD CORP 0.02 0.02 Canada CANADA CONSUMER DISCRETIONARY CINEPLEX INC 0.02 0.02 Canada CANADA ENERGY PRECISION DRILLING CORP (CANA) 0.02 0.01 Canada CANADA MATERIALS TOREX GOLD RESOURCES INC 0.02 0.01 Canada CANADA ENERGY CANYON SERVICES GROUP INC 0.02 0.00 Canada CANADA ENERGY CALFRAC WELL SERVICES LTD 0.01 0.00 Canada CANADA CONSUMER DISCRETIONARY NEW LOOK VISION GROUP INC 0.01 0.00 Canada CANADA CONSUMER DISCRETIONARY STINGRAY DIGITAL GROUP INC 0.01 0.00 *Weightings are shown against the MSCI World ex-US IMI (N). Client data shown. Note: Differences are due to rounding. Not a recommendation or offer to buy or sell securities. 36 For institutional use only. 201608-20423 International Growth Holdings by Region* Index End Region Country Sector Security name Fund End Weight Weight Europe & Middle East AUSTRIA FINANCIALS ERSTE GROUP BANK AG 0.74 0.05 Europe & Middle East BELGIUM CONSUMER STAPLES ANHEUSER BUSCH INBEV NV 1.74 0.64 Europe & Middle East BELGIUM FINANCIALS KBC GROUPE SA 0.73 0.09 Europe & Middle East BELGIUM HEALTH CARE UCB SA 0.38 0.07 Europe & Middle East DENMARK CONSUMER DISCRETIONARY PANDORA A/S 0.65 0.09 Europe & Middle East DENMARK FINANCIALS DANSKE BK AS 0.47 0.13 Europe & Middle East FRANCE FINANCIALS SOCIETE GENERALE SA CL A 1.13 0.18 Europe & Middle East FRANCE HEALTH CARE SANOFI 1.09 0.58 Europe & Middle East FRANCE CONSUMER STAPLES DANONE SA 1.02 0.29 Europe & Middle East FRANCE INDUSTRIALS SCHNEIDER ELECTRIC SE 0.78 0.24 Europe & Middle East FRANCE FINANCIALS AXA SA 0.68 0.26 Europe & Middle East FRANCE FINANCIALS AMUNDI SA 0.57 0.00 Europe & Middle East FRANCE CONSUMER DISCRETIONARY ACCOR SA 0.56 0.04 Europe & Middle East FRANCE INDUSTRIALS ST GOBAIN CIE DE 0.51 0.13 Europe & Middle East FRANCE CONSUMER DISCRETIONARY KERING 0.50 0.09 Europe & Middle East FRANCE INDUSTRIALS LEGRAND SA 0.44 0.10 Europe & Middle East FRANCE INDUSTRIALS SAFRAN SA 0.44 0.14 Europe & Middle East FRANCE CONSUMER DISCRETIONARY VALEO SA 0.38 0.08 Europe & Middle East FRANCE UTILITIES VEOLIA ENVIRONNEMENT 0.35 0.06 Europe & Middle East FRANCE TELECOMMUNICATION SERVICES ILIAD GROUP SA 0.29 0.03 Europe & Middle East GERMANY HEALTH CARE BAYER AG 1.37 0.57 Europe & Middle East GERMANY INFORMATION TECHNOLOGY SAP SE 1.19 0.55 Europe & Middle East GERMANY MATERIALS HEIDELBERGCEMENT AG (GERW) 0.83 0.08 Europe & Middle East GERMANY HEALTH CARE FRESENIUS SE & CO KGAA 0.82 0.19 Europe & Middle East GERMANY INDUSTRIALS DEUTSCHE POST AG 0.74 0.20 Europe & Middle East GERMANY MATERIALS LANXESS AG 0.65 0.03 Europe & Middle East GERMANY TELECOMMUNICATION SERVICES TELEFONICA DEUTSCHLAND HLDG AG 0.54 0.02 Europe & Middle East GERMANY CONSUMER DISCRETIONARY VOLKSWAGEN AG 0.50 0.20 Europe & Middle East GERMANY CONSUMER DISCRETIONARY CONTINENTAL AG 0.46 0.15 Europe & Middle East GERMANY INDUSTRIALS SIEMENS AG (REGD) 0.36 0.58 Europe & Middle East GERMANY INFORMATION TECHNOLOGY DIALOG SEMICONDUCTOR PLC (GER) 0.30 0.02 Europe & Middle East ITALY UTILITIES SNAM SPA 0.67 0.09 Europe & Middle East ITALY FINANCIALS INTESA SANPAOLO SPA 0.48 0.21 Europe & Middle East ITALY INDUSTRIALS LEONARDO-FINMECCANICA SPA 0.44 0.03 Europe & Middle East NETHERLANDS CONSUMER STAPLES UNILEVER NV CVA (BEARER) 1.75 0.48 Europe & Middle East NETHERLANDS CONSUMER STAPLES KONINKLIJKE AHOLD DELHAIZE NV 1.01 0.20 Europe & Middle East NETHERLANDS INDUSTRIALS RELX NV 0.78 0.11 Europe & Middle East NETHERLANDS INDUSTRIALS KONINKLIJKE PHILIPS NV 0.64 0.17 Europe & Middle East NETHERLANDS FINANCIALS ABN AMRO GROUP NV-GDR 0.53 0.03 Europe & Middle East NORWAY CONSUMER DISCRETIONARY SCHIBSTED AS 0.61 0.03 Europe & Middle East PORTUGAL ENERGY GALP ENERGIA SGPS SA 0.85 0.04 Europe & Middle East PORTUGAL UTILITIES ENERGIAS DE PORTUGAL SA 0.54 0.05 Europe & Middle East SPAIN INFORMATION TECHNOLOGY AMADEUS IT GROUP SA 0.92 0.13 Europe & Middle East SPAIN CONSUMER DISCRETIONARY INDITEX SA 0.86 0.25 Europe & Middle East SPAIN FINANCIALS BANKINTER SA 0.70 0.03 Europe & Middle East SPAIN UTILITIES IBERDROLA SA 0.66 0.23 Europe & Middle East SPAIN UTILITIES RED ELECTRICA CORPORACION SA 0.59 0.06 Europe & Middle East SPAIN INDUSTRIALS ABERTIS INFRAESTRUCTURAS SA 0.43 0.06 Europe & Middle East SPAIN ENERGY TECNICAS REUNIDAS SA 0.41 0.01
*Weightings are shown against the MSCI World ex-US IMI (N). Client data shown. Note: Differences are due to rounding. Not a recommendation or offer to buy or sell securities. 37 For institutional use only. 201608-20423 International Growth Holdings by Region* Index End Region Country Sector Security name Fund End Weight Weight Europe & Middle East SWEDEN ENERGY LUNDIN PETROLEUM AB 0.77 0.02 Europe & Middle East SWEDEN INDUSTRIALS ALFA LAVAL AB 0.77 0.03 Europe & Middle East SWEDEN FINANCIALS NORDEA BANK AB 0.61 0.19 Europe & Middle East SWEDEN CONSUMER DISCRETIONARY HENNES & MAURITZ AB B 0.54 0.19 Europe & Middle East SWITZERLAND HEALTH CARE ROCHE HLDGS AG (GENUSSCHEINE) 2.13 1.10 Europe & Middle East SWITZERLAND HEALTH CARE NOVARTIS AG (REG) 0.74 1.15 Europe & Middle East SWITZERLAND FINANCIALS PARTNERS GROUP HOLDING AG 0.71 0.05 Europe & Middle East SWITZERLAND MATERIALS LAFARGEHOLCIM LTD (REG) 0.69 0.15 Europe & Middle East SWITZERLAND INDUSTRIALS ADECCO GROUP AG 0.58 0.06 Europe & Middle East SWITZERLAND FINANCIALS JULIUS BAER GRUPPE AG 0.56 0.06 Europe & Middle East SWITZERLAND CONSUMER STAPLES NESTLE SA (REG) 0.32 1.63 Europe & Middle East UNITED KINGDOM ENERGY ROYAL DUTCH SHELL PLC 2.09 1.27 Europe & Middle East UNITED KINGDOM CONSUMER STAPLES DIAGEO PLC 1.30 0.45 Europe & Middle East UNITED KINGDOM CONSUMER STAPLES RECKITT BENCKISER GROUP PLC 1.25 0.39 Europe & Middle East UNITED KINGDOM CONSUMER STAPLES IMPERIAL BRANDS PLC 1.06 0.32 Europe & Middle East UNITED KINGDOM HEALTH CARE SHIRE PLC 0.99 0.36 Europe & Middle East UNITED KINGDOM TELECOMMUNICATION SERVICES VODAFONE GROUP PLC 0.85 0.51 Europe & Middle East UNITED KINGDOM TELECOMMUNICATION SERVICES BT GROUP PLC 0.82 0.27 Europe & Middle East UNITED KINGDOM FINANCIALS HSBC HOLDINGS PLC (UK REG) 0.81 0.93 Europe & Middle East UNITED KINGDOM MATERIALS RIO TINTO PLC (REGD) 0.75 0.24 Europe & Middle East UNITED KINGDOM CONSUMER DISCRETIONARY WPP PLC NEW (UK) 0.65 0.19 Europe & Middle East UNITED KINGDOM FINANCIALS PRUDENTIAL PLC 0.61 0.29 Europe & Middle East UNITED KINGDOM FINANCIALS DIRECT LINE INSURANCE GRP PLC 0.55 0.04 Europe & Middle East UNITED KINGDOM MATERIALS CRODA INTERNATIONAL PLC 0.54 0.04 Europe & Middle East UNITED KINGDOM INDUSTRIALS CAPITA PLC 0.54 0.06 Europe & Middle East UNITED KINGDOM MATERIALS RANDGOLD RESOURCES LTD 0.53 0.06 Europe & Middle East UNITED KINGDOM FINANCIALS ST JAMES PLACE PLC 0.47 0.04 Europe & Middle East UNITED KINGDOM REAL ESTATE BRITISH LAND CO PLC 0.46 0.05 Europe & Middle East UNITED KINGDOM MATERIALS FRESNILLO PLC 0.43 0.03
*Weightings are shown against the MSCI World ex-US IMI (N). Client data shown. Note: Differences are due to rounding. Not a recommendation or offer to buy or sell securities. 38 For institutional use only. 201608-20423 International Growth Holdings by Region* Index End Region Country Sector Security name Fund End Weight Weight Japan JAPAN FINANCIALS MITSUBISHI UFJ FINL GRP INC 1.01 0.45 Japan JAPAN TELECOMMUNICATION SERVICES KDDI CORP 0.96 0.35 Japan JAPAN FINANCIALS ORIX CORP 0.92 0.12 Japan JAPAN CONSUMER STAPLES JAPAN TOBACCO INC 0.88 0.27 Japan JAPAN TELECOMMUNICATION SERVICES NIPPON TELEGRAPH & TELEPHONE 0.84 0.19 Japan JAPAN HEALTH CARE ASTELLAS PHARMA INC 0.80 0.21 Japan JAPAN CONSUMER DISCRETIONARY SONY CORP 0.79 0.26 Japan JAPAN CONSUMER DISCRETIONARY TOYOTA MOTOR CORP 0.76 1.03 Japan JAPAN CONSUMER DISCRETIONARY HONDA MOTOR CO LTD 0.71 0.32 Japan JAPAN CONSUMER DISCRETIONARY DENTSU INC 0.71 0.08 Japan JAPAN INDUSTRIALS DAIKIN INDUSTRIES LTD 0.61 0.14 Japan JAPAN INDUSTRIALS NSK LTD 0.59 0.03 Japan JAPAN CONSUMER DISCRETIONARY YAMAHA MOTOR CO LTD 0.58 0.04 Japan JAPAN INFORMATION TECHNOLOGY SQUARE ENIX HOLDINGS CO LTD 0.56 0.02 Japan JAPAN INDUSTRIALS MISUMI GROUP INC 0.56 0.03 Japan JAPAN INDUSTRIALS MAKITA CORP 0.53 0.05 Japan JAPAN INFORMATION TECHNOLOGY KEYENCE CORP 0.52 0.20 Japan JAPAN REAL ESTATE MITSUI FUDOSAN CO 0.52 0.12 Japan JAPAN INFORMATION TECHNOLOGY DISCO CORP 0.51 0.02 Japan JAPAN REAL ESTATE DAITO TRUST CONSTRUCTION 0.47 0.07 Japan JAPAN REAL ESTATE DAIWA HOUSE INDUSTRY CO LTD 0.47 0.09 Japan JAPAN FINANCIALS SURUGA BANK LTD 0.45 0.03 Japan JAPAN INDUSTRIALS MITSUBISHI ELECTRIC CORP ORD 0.45 0.16 Japan JAPAN INFORMATION TECHNOLOGY MURATA MFG CO LTD 0.44 0.16 Japan JAPAN CONSUMER DISCRETIONARY RINNAI CORP 0.42 0.02 Japan JAPAN CONSUMER DISCRETIONARY MARUI GROUP CO LTD 0.40 0.02 Japan JAPAN CONSUMER STAPLES ASAHI GROUP HOLDINGS LTD 0.37 0.08 Japan JAPAN INFORMATION TECHNOLOGY NINTENDO CO LTD 0.37 0.16 Japan JAPAN HEALTH CARE SHIONOGI & CO LTD 0.36 0.09 Japan JAPAN CONSUMER DISCRETIONARY DON QUIJOTE HOLDINGS CO LTD 0.34 0.02 Japan JAPAN INFORMATION TECHNOLOGY TOKYO ELECTRON LTD 0.31 0.09 Japan JAPAN CONSUMER DISCRETIONARY CYBER AGENT INC 0.29 0.02 Japan JAPAN INDUSTRIALS NIDEC CORP 0.27 0.14 Japan JAPAN MATERIALS SUMITOMO METAL MINING CO LTD 0.26 0.04 Japan JAPAN CONSUMER STAPLES KAO CORP 0.20 0.17 Japan JAPAN HEALTH CARE SYSMEX CORPORATION 0.19 0.06 Japan JAPAN HEALTH CARE SOSEI GROUP CORP 0.19 0.02 Japan JAPAN INDUSTRIALS NGK INSULATORS LTD 0.17 0.04 Japan JAPAN CONSUMER STAPLES NH FOODS LTD 0.17 0.02 Japan JAPAN INDUSTRIALS MINEBEA MITSUMI INC 0.16 0.02 Japan JAPAN CONSUMER DISCRETIONARY FUJI HEAVY INDUSTRIES LTD 0.15 0.15 Japan JAPAN HEALTH CARE PEPTIDREAM INC 0.13 0.01 Japan JAPAN CONSUMER DISCRETIONARY START TODAY CO LTD 0.12 0.02 Japan JAPAN INFORMATION TECHNOLOGY GMO INTERNET INC 0.12 0.01 Japan JAPAN MATERIALS HITACHI METALS LTD 0.12 0.02 Japan JAPAN HEALTH CARE M3 INC 0.11 0.04 Japan JAPAN CONSUMER DISCRETIONARY NGK SPARK PLUG CO LTD 0.11 0.02 Japan JAPAN HEALTH CARE ONO PHARMACEUTICAL CO LTD 0.10 0.07 Japan JAPAN FINANCIALS HITACHI CAPITAL CORPORATION 0.10 0.01 Japan JAPAN INFORMATION TECHNOLOGY OBIC CO LTD 0.09 0.02 Japan JAPAN CONSUMER STAPLES AIN HOLDINGS INC 0.08 0.01
*Weightings are shown against the MSCI World ex-US IMI (N). Client data shown. Note: Differences are due to rounding. Not a recommendation or offer to buy or sell securities. 39 For institutional use only. 201608-20423 International Growth Holdings by Region* Index End Region Country Sector Security name Fund End Weight Weight Pacific ex-Japan AUSTRALIA FINANCIALS AUSTRALIA & NZ BANKING GRP 0.61 0.38 Pacific ex-Japan AUSTRALIA FINANCIALS COMMONWEALTH BK OF AUSTRALIA 0.59 0.59 Pacific ex-Japan AUSTRALIA FINANCIALS WESTPAC BANKING CORP 0.47 0.47 Pacific ex-Japan AUSTRALIA HEALTH CARE RAMSAY HEALTH CARE LTD 0.44 0.06 Pacific ex-Japan AUSTRALIA HEALTH CARE CSL LIMITED 0.44 0.24 Pacific ex-Japan AUSTRALIA FINANCIALS MACQUARIE GROUP LTD 0.40 0.12 Pacific ex-Japan AUSTRALIA MATERIALS AMCOR LTD 0.35 0.09 Pacific ex-Japan AUSTRALIA FINANCIALS CHALLENGER LTD 0.30 0.03 Pacific ex-Japan AUSTRALIA TELECOMMUNICATION SERVICES TELSTRA CORP LTD 0.30 0.11 Pacific ex-Japan AUSTRALIA MATERIALS JAMES HARDIE INDUSTRES PLC CDI 0.27 0.05 Pacific ex-Japan AUSTRALIA CONSUMER DISCRETIONARY ARISTOCRAT LEISURE LTD 0.26 0.04 Pacific ex-Japan AUSTRALIA CONSUMER STAPLES WESFARMERS LTD 0.24 0.23 Pacific ex-Japan AUSTRALIA REAL ESTATE GOODMAN GROUP STAPLED UNIT 0.24 0.06 Pacific ex-Japan AUSTRALIA MATERIALS RIO TINTO LTD 0.23 0.10 Pacific ex-Japan AUSTRALIA CONSUMER DISCRETIONARY REA GROUP LTD 0.22 0.01 Pacific ex-Japan AUSTRALIA INDUSTRIALS TRANSURBAN GROUP STAPLED UNIT 0.19 0.11 Pacific ex-Japan AUSTRALIA MATERIALS BHP BILLITON LTD 0.18 0.32 Pacific ex-Japan AUSTRALIA INDUSTRIALS SYDNEY AIRPORT STAPLE UNIT 0.12 0.04 Pacific ex-Japan AUSTRALIA UTILITIES AGL ENERGY LTD 0.10 0.06 Pacific ex-Japan AUSTRALIA INDUSTRIALS SEEK LTD 0.09 0.03 Pacific ex-Japan AUSTRALIA UTILITIES APA GROUP (STAPLED) 0.08 0.05 Pacific ex-Japan AUSTRALIA REAL ESTATE LENDLEASE GROUP (STAPLED) 0.06 0.04 Pacific ex-Japan AUSTRALIA ENERGY WOODSIDE PETROLEUM LTD 0.05 0.10 Pacific ex-Japan HONG KONG FINANCIALS AIA GROUP LTD 0.82 0.49 Pacific ex-Japan HONG KONG CONSUMER DISCRETIONARY TECHTRONIC INDUSTRIES CO LTD 0.60 0.04 Pacific ex-Japan HONG KONG INDUSTRIALS CK HUTCHISON HOLDINGS LTD 0.30 0.22 Pacific ex-Japan HONG KONG FINANCIALS BANK OF CHINA HONG KONG LTD 0.28 0.08 Pacific ex-Japan HONG KONG REAL ESTATE CHEUNG KONG PROPERTY HLDGS LTD 0.27 0.12 Pacific ex-Japan HONG KONG TELECOMMUNICATION SERVICES PCCW LTD 0.20 0.02 Pacific ex-Japan HONG KONG INFORMATION TECHNOLOGY TENCENT HOLDINGS LIMITED 0.19 0.00 Pacific ex-Japan HONG KONG CONSUMER DISCRETIONARY WYNN MACAU LIMITED 0.10 0.01 Pacific ex-Japan HONG KONG REAL ESTATE WHEELOCK & CO LTD 0.07 0.03 Pacific ex-Japan HONG KONG FINANCIALS HONG KONG EXCHS & CLEARING LTD 0.07 0.18 Pacific ex-Japan HONG KONG INFORMATION TECHNOLOGY VTECH HOLDINGS LTD 0.05 0.01 Pacific ex-Japan NEW ZEALAND HEALTH CARE RYMAN HEALTHCARE GROUP LTD 0.49 0.02 Pacific ex-Japan NEW ZEALAND INDUSTRIALS AUCKLAND INTL AIRPORT LTD 0.25 0.03 Pacific ex-Japan NEW ZEALAND HEALTH CARE FISHER & PAYKEL HEALTHCARE COR 0.19 0.03 Pacific ex-Japan NEW ZEALAND TELECOMMUNICATION SERVICES SPARK NEW ZEALAND LTD (NZ) 0.18 0.03 Pacific ex-Japan NEW ZEALAND CONSUMER DISCRETIONARY SKY CITY ENTERTAINMENT GRP LTD 0.06 0.02 Pacific ex-Japan SINGAPORE INDUSTRIALS COMFORTDELGRO CORP LTD 0.23 0.03 Pacific ex-Japan SINGAPORE INDUSTRIALS SINGAPORE TECH ENGINEERING LTD 0.22 0.02 Pacific ex-Japan SINGAPORE TELECOMMUNICATION SERVICES SINGAPORE TELECOM LTD (SING) 0.15 0.15
*Weightings are shown against the MSCI World ex-US IMI (N). Client data shown. Note: Differences are due to rounding. Not a recommendation or offer to buy or sell securities. 40 For institutional use only. 201608-20423 Appendix
For institutional use only. International Growth—Glossary
Term Definition Price to Earnings A valuation ratio of an investments current share price compared to its per-share earnings. Earnings Growth The growth of earnings per share over time. Return on Equity The amount of net income returned as a percentage of shareholders equity. Price to Book A ratio used to compare an investments market value to its book value. Price to Sales A ratio for valuing an investment relative to its own past performance, other investments or the market itself. Price to Cash Flow A ratio used to compare an investments market value to its cash flow. Weighted Average Market Cap A portfolio weighted by the market capitalization of each stock in the portfolio. Dividend Yield A financial ratio that shows how much an investment pays out in dividends each year relative to its share price. Tracking Error A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. A statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns. More Standard Deviation generally, a measure of the extent to which numbers are spread around their average. Relative Volatility The standard deviation of an investment's or portfolio's return divided by the standard deviation of another portfolio. A measurement of how closely a portfolio's performance correlates with the performance of a benchmark index and thus a R-Squared measurement of what portion of its performance can be explained by the performance of the overall market or index. Values for r-squared range from 0 to 1, where 0 indicates no correlation and 1 indicates perfect correlation. Correlation Coefficient A statistical measure of how two investments move in relation to each other. A quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the overall market. Specifically, the Beta performance the stock, fund or portfolio has experienced in the last 5 years as the index moved 1% up or down. A beta above 1 is more volatile than the overall market, while a beta below 1 is less volatile. Annualized Alpha The annualized excess return of a portfolio relative to the annualized return of the benchmark. Sharpe Ratio A measure of the excess return per unit of deviation in an investment asset or trading strategy, typically referred to as risk. Information Ratio A measure of the risk adjusted return of a portfolio A coefficient which measures risk-adjusted performance, factoring in the risk due to the specific security, rather than the Jensen's Alpha overall market. A measurement of the returns earned in excess of that which could have been earned on an investment that has no Treynor Ratio diversifiable risk per each unit of risk assumed.
Measures the risk of loss on a specific portfolio of financial assets. VaR is defined as a threshold value such that the probability Value at Risk that the mark-to-market loss on a portfolio over the given time horizon exceeds this value is the given probability level.
42 For institutional use only. 201608-20423
STATEMENT OF INVESTMENT OBJECTIVES, GOALS, AND GUIDELINES
REVISED: 2014-04-01
WATER AND POWER EMPLOYEES’ RETIREMENT PLAN . STATEMENT OF INVESTMENT OBJECTIVES, GOALS, AND GUIDELINES
6.2 Active Growth International Equity Guidelines (Pyramis)
The Plan has appointed Pyramis Global Advisors (Pyramis) to manage a portion of the Plan's assets. These assets will be managed in conformance with the objectives and guidelines delineated below and in accordance with the formal contract with the Retirement Board.
Portfolio Component Definition
Pyramis has been designated as an international equity manager. As an international equity manager, Pyramis is expected to invest in companies located in developed non-US markets that possess significant amounts of liquidity and capitalization. Emphasis shall be placed on medium and larger capitalized stocks.
Portfolio Guidelines
1. The portfolio shall be composed of cash equivalents and equity securities of companies doing business outside the United States with minimum market capitalizations of $200 million. Equity securities shall be restricted to those issues listed on the major local-country stock exchanges. The markets that Pyramis can invest in are those within the following indices:
a. Morgan Stanley-Capital World ex-U.S. Growth Investable Market Index ND (MSCI World ex-U.S. Growth IMI ND)
b. Morgan Stanley-Capital World ex-U.S. Equity Investable Market Index ND (MSCI World ex-U.S. Equity IMI ND)
SEC Rule 144A international equity instruments with registration rights are fully permissible. Those instruments without registration rights must not exceed 10% of the lesser of cost or market value of any single international equity portfolio.
Investing in Emerging Markets is prohibited. Emerging markets shall be defined as those countries included in the MSCI Emerging Markets Investable Market Index ND.
In order to minimize transaction costs and market impact associated with country reclassification, and as MSCI reclassifies specific countries from one market to another (such as from emerging to developed or frontier to emerging), Pyramis, with advance notification to the Retirement Plan Manager, may invest in such countries, subsequent to the announcement of MSCI’s formal reclassification and prior to its effective date.
2. Pyramis shall not use (non-currency) derivatives within the portfolio without the expressed written consent of the Plan. If Pyramis elects to use derivatives as part of its investment strategy, the Plan requires that Pyramis document the rationale for using such instruments. Pyramis shall not invest in letter or restricted stock, naked options or future contracts, and uncovered short positions or commodities. Use of any derivative instrument for speculation is prohibited.
3. Currency hedging up to a maximum of 25% of the portfolio value (notional) is permitted for defensive purposes. Currency hedging shall be effected through the use of forward currency contracts and put and call options.
Section VI Page |41
WATER AND POWER EMPLOYEES’ RETIREMENT PLAN . STATEMENT OF INVESTMENT OBJECTIVES, GOALS, AND GUIDELINES
4. For prudent diversification the portfolio shall have a minimum of 30 issues quoted in at least 10 stock markets, although assets will not be specifically allocated to individual countries or markets. The maximum exposure to any individual issue will be no greater than the weight of the issue in the benchmark plus 3%. In addition, no issue shall be purchased in the portfolio if more than 15% of the outstanding shares of that company are held by Pyramis in the total of all of its accounts. Pyramis is required to identify to the Plan, on a quarterly basis, those holdings/issues in the portfolio where Pyramis holds more than 10% of the outstanding shares in the total of its accounts.
5. The cash equivalent portion should not normally exceed 10% of the portfolio. Cash equivalents may be U.S. dollar or non-U.S. dollar denominated.
Portfolio Characteristics
1. It is expected that the portfolio will invest across a broad array of countries within the MSCI World ex U.S. Growth IMI NDand MSCI World ex U.S. Equity IMI ND. Regional and country weights, however, may vary significantly from the index.
2. It is expected that the portfolio's weighted average price/earnings ratio on a trailing 12- month basis in general will be within a +/- 0.5x range of the market as represented by MSCI World ex U.S. Growth IMI ND or MSCI World ex U.S. Equity IMI ND.
3. It is expected that the portfolio's weighted average dividend yield on a quarterly basis will be within a +/- 0.5x range of the market as represented by the MSCI World ex U.S. Growth IMI ND or MSCI World ex U.S. Equity IMI ND.
4. It is expected that the portfolio's market sensitivity (beta) in general will be no less than 0.80 and no greater than 1.30 of to the market as represented by the MSCI World ex U.S. Growth IMI ND, or MSCI World ex U.S. Equity IMI ND, on a 24-month rolling basis, using monthly holdings data.
Performance Objectives
On an annual basis Pyramis is expected to outperform the MSCI World ex U.S. IMI ND return, net of fees, to be measured over a market cycle of three-to-five years. The reference style benchmark for Pyramis is the MSCI World Growth ex U.S. IMI ND.
Section VI Page |42
Important Information
Read this important information carefully before making any investment. Speak with your relationship manager if you have any questions. Risks Past performance is no guarantee of future results. An investment may be risky and may not be suitable for an investor's goals, objectives and risk tolerance. Investors should be aware that an investment's value may be volatile and any investment involves the risk that you may lose money. Performance results for individual accounts will differ from performance results for composites and representative accounts due to factors such as portfolio size, account objectives and restrictions, and factors specific to a particular investment structure. The value of a strategy's investments will vary day to day in response to many factors, including in response to adverse issuer, political, regulatory, market or economic developments. The value of an individual security or a particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. Nearly all accounts are subject to volatility in non-US markets, either through direct exposure or indirect effects on US markets from events abroad, including fluctuations in foreign currency exchange rates and, in the case of less developed markets, currency illiquidity. Derivatives may be volatile and involve significant risk, such as credit risk, currency risk, leverage risk, counterparty risk and liquidity risk. Using derivatives can disproportionately increase losses and reduce opportunities for gains in certain circumstances. Investments in derivatives may have limited liquidity and may be harder to value, especially in declining markets. Derivatives involve leverage because they can provide investment exposure in an amount exceeding the initial investment. Leverage can magnify investment risks and cause losses to be realized more quickly. A small change in the underlying asset, instrument, or index can lead to a significant loss. Assets segregated to cover these transactions may decline in value and are not available to meet redemptions. Government legislation or regulation could affect the use of these transactions and could limit the ability to pursue such investment strategies. The performance of international strategies depends upon currency values, political and regulatory environments, and overall economic factors in the countries in which they invest. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Foreign exchange rates also can be extremely volatile. The risks are particularly significant for strategies that focus on a single country or region. Some investment strategies may be offered to certain qualified investors in the form of interests in a privately-offered fund offered by Fidelity Investments Institutional Services Company, Inc. Such interests will not generally be transferable or listed on any exchange and it is not anticipated that they will be tradable. Such interests may also be subject to certain collateral risks. Before investing, any potential investors should receive and read a copy of such fund's confidential private placement memorandum. The securities, derivatives and currency markets of emerging market countries are generally smaller, less developed, less liquid, and more volatile than the securities, derivatives and currency markets of the United States and other developed markets and disclosure and regulatory standards in many respects are less stringent. There also may be a lower level of monitoring and regulation of markets in emerging market countries and the activities of investors in such markets and enforcement of existing regulations may be extremely limited. Government enforcement of existing market regulations is limited, and any enforcement may be arbitrary and the results may be difficult to predict. Emerging market countries are more likely than developed market countries to experience political uncertainty and instability, including the risk of war, terrorism, nationalization, limitations on the removal of funds or other assets, or diplomatic developments that affect investments in these countries. In many cases, governments of emerging market countries continue to exercise significant control over their economies. In addition, there is a heightened possibility of expropriation or confiscatory taxation, imposition of withholding taxes on interest payments, or other similar developments that could affect investments in those countries. These materials contain statements that are “forward-looking statements,” which are based on certain assumptions of future events. Forward-looking statements are based on information available on the date hereof, and FIAM does not assume any duty to update any forward-looking statement. Actual events may differ from those assumed. There can be no assurance that forward-looking statements, including any projected returns, will materialize or that actual market conditions and/or performance results will not be materially different or worse than those presented.
51 For institutional use only. 201608-20423 699591.8.0 Important Information, continued
Performance Data Performance data is generally presented gross of any fees and expenses, including advisory fees, which when deducted will reduce returns. See the GIPS® Composite Performance Data for performance figures that are net of the maximum investment advisory fee charged any client employing this strategy. Some clients may request a performance fee arrangement, which if imposed will also reduce returns when deducted. See FIAM LLC's Form ADV for more information about advisory fees if FIAM LLC is the investment manager to the account. For additional information about advisory fees related to other FIAM advisory entities, speak with your relationship manager. All results reflect realized and unrealized appreciation and the reinvestment of dividends and investment income, if applicable. Taxes have not been deducted. FIAM claims compliance with the Global Investment Performance Standards (GIPS®). In conducting its investment advisory activities, FIAM utilizes certain assets, resources and investment personnel of FMR Co. and its affiliates, which do not claim compliance with GIPS®. However, Fidelity Investments Canada ULC (“FIC”), which is a Fidelity Investments company, and FIAM are separate firms, each claiming compliance with GIPS and maintaining separate GIPS Composites. Representative account information is based on an account in the subject strategy’s composite that generally reflects that strategy’s management and is not based on performance of that account. An individual account’s performance will vary due to many factors, including inception dates, portfolio size, account guidelines and type of investment vehicle. Index or benchmark performance shown does not reflect the deduction of advisory fees, transaction charges and other expenses, which if charged would reduce performance. Investing directly in an index is not possible.
Unless otherwise indicated, references made to product assets under management (“AUM”) are to the GIPS firm AUM for the strategy which include all discretionary and, if applicable, non-discretionary portfolios.
****
Fidelity Institutional Asset Management (FIAM), formerly known as Pyramis Global Advisors, includes the following entities, or divisions of entities that provide investment services: Fidelity Institutional Asset Management Trust Company, a New Hampshire trust company (FIAM TC); FIAM LLC, a U.S. registered investment adviser; the Fidelity Institutional Asset Management division of FMR Investment Management (UK) Limited, a U.K. registered investment manager and U.S. registered investment adviser (FMRIM- UK); and the Fidelity Institutional Asset Management division of Fidelity Management & Research (Hong Kong) Limited, a Hong Kong and U.S. registered investment adviser (FMRHK). FIAM may use the name Pyramis Global Advisors or Pyramis as an additional business name under which it conducts its advisory business. "Fidelity Investments" and/or “Fidelity” refers collectively to FMR LLC, a US company, and its subsidiaries, including but not limited to Fidelity Management & Research Company (FMR Co.) and FIAM. Products and services presented here are managed by the Fidelity Investments companies of FIAM LLC or Fidelity Institutional Asset Management Trust Company. FIAM products and services may be presented by Fidelity Investments Institutional Services Company, Inc., Fidelity Investments Canada ULC, FIL Limited, or Fidelity Brokerage Services, LLC, Member NYSE, SIPC, all non-exclusive financial intermediaries that are affiliated with FIAM and compensated for such services. Certain data and other information in this presentation have been supplied by outside sources and are believed to be reliable as of the date of this document. Data and information from third-party databases, such as those sponsored by eVestment Alliance and Callan, are self-reported by investment management firms that generally pay a subscription fee to use such databases, and the database sponsors do not guarantee or audit the accuracy, timeliness or completeness of the data and information provided including any rankings. Rankings or similar data reflect information at the time rankings were retrieved from a third-party database, and such rankings may vary significantly as additional data from managers are reported. FIAM has not verified and cannot verify the accuracy of information from outside sources, and potential investors should be aware that such information is subject to change without notice. Information is current as of the date noted. FIAM has prepared this presentation for, and only intends to provide it to, institutional, sophisticated and/or qualified investors in one-on-one or comparable presentations. Do not distribute or reproduce this report. Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or its affiliated companies. FIAM does not provide legal or tax advice and we encourage you to consult your own lawyer, accountant or other advisor before making an investment. Not FDIC Insured · No Bank Guarantee · May Lose Value
52 For institutional use only. 201608-20423 699591.8.0 FIAM GIPS Composite Performance Data International Growth Plus Canada Composite (USD) Versus MSCI EAFE + Canada Index (Net) As of June 30, 2016
Total Composite Composite Benchmark Asset Weighted Composite Return Composite Return Benchmark Return Value Added Number of Percent of Firm's Period Assets End of 3 Year Standard 3 Year Standard Standard Deviation (Gross%) (Net%) (%) (%)* Portfolios Assets Period ($M) Deviation (%) Deviation (%) (%) 2016 YTD (3.38) (3.76) (2.98) (0.40) 6 2,894 12.73 13.17 N/A less than 1% 2015 Annual 0.63 (0.17) (3.04) 3.67 6 3,025 11.96 12.45 0.24 less than 1% 2014 Annual (5.38) (6.14) (4.32) (1.06) 6 4,332 12.71 12.92 0.35 less than 1% 2013 Annual 26.24 25.26 21.02 5.22 6 4,761 16.27 16.20 0.41 less than 1% 2012 Annual 20.34 19.39 16.41 3.93 6 3,788 19.09 19.31 0.92 less than 1% 2011 Annual (11.07) (11.78) (12.21) 1.14 6 2,543 21.89 22.66 0.23 less than 1% 2010 Annual 12.16 11.27 8.95 3.21 7 3,544 26.14 26.67 0.39 2% 2009 Annual 35.18 34.12 33.67 1.51 8 4,109 23.98 24.22 N/A 3% 2008 Annual (42.84) (43.32) (43.56) 0.72 5 2,213 20.24 19.73 0.26 1% 2007 Annual 17.12 16.20 12.44 4.68 6 5,021 10.31 9.85 0.77 2% 2006 Annual 23.44 22.47 25.71 (2.27) 8 4,515 9.99 9.60 0.57 2% * Value Added is calculated by taking the gross composite return less the benchmark return. Notes Definition of the "Firm" Composite Description For GIPS purposes, the "Firm" includes: (1) all of the portfolios managed by the investment management units of the The investment objective of this composite is to add consistent value to the MSCI EAFE + Canada Index (Net) by Fidelity Institutional Asset Management group of companies ("FIAM"); and (2) portfolios managed by FIAM's affiliates, combining the Firm's most attractive international and Canadian stock picks with a bottom-up asset allocation process. Fidelity Management & Research Company and its subsidiaries ("FMR Co."), the fixed income portfolios of Fidelity The composite is composed of all fee-paying discretionary accounts that are managed by the Firm in this style. Management Trust Company ("FMTC"), and/or Fidelity Investments Money Management, Inc. ("FIMM"), that are also substantially similar to institutional mandates advised by FIAM and managed by the same portfolio management team. Composite Creation Date This composite was created in 2003 Changes to Definition of the "Firm" Effective January 1, 2011, the definition of the Firm was revised to include substantially similar investment strategies Fee Schedule managed by FMR Co. and/or FIMM and the same portfolio management team. Effective January 1, 2013, the definition The maximum scheduled investment advisory fee for this strategy is 80 basis points, which may be subject to certain of the Firm was revised to include subsidiaries of FMR Co. Effective November 20, 2015, the definition of the Firm was decreases as assets under management increase. The investment advisory fee applicable to a portfolio depends on a revised to change the name of Pyramis Global Advisors to FIAM. Effective January 1, 2016, the definition of the Firm variety of factors, including but not limited to portfolio size, the level of committed assets, service levels, the use of a was revised to include substantially similar fixed income investment strategies managed by FMTC and the same performance fee or minimum fee arrangement, and other factors. portfolio management team. Effect of Investment Advisory Fee Basis of Presentation Returns will be reduced by the investment advisory fee and any other expenses incurred in the management of the The Firm claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and portfolio. For example, an account with a compound annual return of 10% would have increased by 61% over five presented this report in compliance with the GIPS standards. The Firm has been independently verified for the periods years. Assuming an annual advisory fee of 80 basis points, the net return would have been 55% over five years. January 1, 1990 through December 31, 2014. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all of the composite requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the Derivative Exposure GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The Firm's list of Typically, portfolios may make limited use of derivative instruments to manage and invest cash inflows of underlying composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing accounts within the composite. They are not used for hedging purposes. Derivative instruments are only used when compliant presentations are available upon request. and as client guidelines permit.
Returns Use of a Sub-Advisor Gross composite returns do not reflect the deduction of investment advisory ("IA"), administrative or custodial fees, but In conjunction with the re-definition of the Firm effective January 1, 2009 the Firm has used a sub-advisor since that do include trading expenses. Net composite returns are calculated by deducting the maximum standard IA fee that time in managing a portion of this strategy. could have been charged to any client employing this strategy during the time period shown, exclusive of performance fee or minimum fee arrangements. IA fees paid by a client vary depending upon a variety of factors, including portfolio size and the use of any performance fee or minimum fee arrangement. Actual returns will be reduced by the IA fee and any administrative, custodial, or other fees and expenses incurred. Returns could be higher or lower than those shown. Past performance is no guarantee of future results. A client's fees are generally calculated based on the average month-end assets at market value during the quarter as calculated by the Firm, and are billed quarterly in arrears. More information regarding fees is available upon request. These investment performance statistics were calculated without a provision for any income taxes. 521784.16.0
53 For institutional use only. 201608-20423 Biographies
Chris Steward, CFA Co-Lead Portfolio Manager Chris Steward is an institutional portfolio manager at Fidelity Institutional Asset ManagementSM (FIAMSM), an investment organization within Fidelity Investments’ asset management division that is dedicated to serving the needs of consultants and institutional investors, such as defined benefit and defined contribution plans, endowments and financial advisors. In this role, he is co-lead portfolio manager for the FIAMSM International Growth strategy and a member of the Select International Small Cap portfolio management team. Prior to joining Fidelity in 2006, Mr. Steward was a vice president and portfolio advisor at Wellington Management. In that role, he conducted investment reviews with prospects and clients on a broad range of equity, fixed income, and asset allocation products. Mr. Steward also worked with the global asset allocation and global fixed income groups at Putnam Investments and served as an analyst and portfolio manager in his five years with the global bond group at Scudder, Stevens & Clark. Additionally, Mr. Steward worked for five years as an analyst in various capacities with the Federal Reserve Bank of New York. He has been in the investments industry since 1987. Mr. Steward earned his bachelor of arts degree from Vassar College and his master of arts degree in economics from Cambridge University in England. In addition to being a Chartered Financial Analyst (CFA) charterholder, Mr. Steward also has authored and co-authored numerous texts on international investing, one of which was a required reading for Level lll of the CFA program.
Brian Hoesly, CFA Co-Lead Portfolio Manager Brian Hoesly is an institutional portfolio manager at Fidelity Institutional Asset ManagementSM (FIAMSM), an investment organization within Fidelity Investments’ asset management division that is dedicated to serving the needs of consultants and institutional investors, such as defined benefit and defined contribution plans, endowments and financial advisors. In this role, he is co-lead portfolio manager for the FIAM International Growth strategy and a member of the International Value portfolio management team. Prior to joining Fidelity in 2006, Mr. Hoesly was a vice president at Wellington Management, working with clients invested in multiple strategies, including international equities and asset allocation. He actively conducted portfolio reviews on a wide array of strategies articulating performance, process, holdings, and investment themes on behalf of portfolio management teams. Prior to that, Mr. Hoesly served in the product and investment areas of Mellon Trust, the global data research group at Interactive Data Corporation, and with Kidder, Peabody & Co., Inc. He has been in the investments industry since 1987. Mr. Hoesly earned his bachelor of science degree from the University of Wisconsin and his master’s degree in business administration from Boston University. He is also a Chartered Financial Analyst (CFA) charterholder and a member of the Boston Securities Analysts Society.
54 For institutional use only. 201608-20423 Biographies
Peter Hadden Portfolio Manager Peter Hadden is a portfolio manager at Fidelity Institutional Asset ManagementSM (FIAMSM), an investment organization within Fidelity Investments’ asset management division that is dedicated to serving the needs of consultants and institutional investors, such as defined benefit and defined contribution plans, endowments and financial advisors. In this role, he manages several institutional portfolios and is the lead portfolio manager of the European regional portfolio of the FIAM International Growth strategy. Prior to joining Fidelity in 2005, Mr. Hadden was a senior portfolio manager at Putnam Investments beginning in 2000, where he managed several international growth funds for the International Growth Equities group. From 1996 to 2000, he was a senior analyst in the Specialty Growth Equities group. Mr. Hadden also served as a corporate bond analyst and began his investment career with the Bank of New England in 1988 as an insurance and credit analyst. Prior to business school, he spent two years as a bank liquidation specialist at the Federal Deposit Insurance Corporation. He has more than 25 years of industry experience. Mr. Hadden earned his bachelor of arts degree in political science from Clark University and his master of business administration degree from Harvard University.
Eileen Dibb, CFA Lead Portfolio Manager, Asia Growth Strategies Eileen Dibb is lead portfolio manager, Asia Growth Strategies at Fidelity Institutional Asset ManagementSM (FIAMSM), an investment organization within Fidelity Investments’ asset management division that is dedicated to serving the needs of consultants and institutional investors, such as defined benefit and defined contribution plans, endowments and financial advisors. In this role, she manages the FIAMSM Asian Growth strategies including FIAMSM Japan Growth and FIAMSM Pac Basin Growth. Prior to assuming her current role in 2008, Ms. Dibb was responsible for researching and analyzing Asian stocks for a global equity portfolio. Before joining Fidelity in 2005, she was a vice president and a regional analyst at Wellington Management Company, where she managed dedicated Japan portfolios. Prior to joining Wellington in 1999, she was an international equity analyst at DuPont Pension Fund, beginning in 1997. Ms. Dibb also served in a number of roles at The Dai-ichi Mutual Life Insurance Company from 1992 through 1996. She has been in the investments industry since 1996. Ms. Dibb earned her bachelor of arts degree in international relations and Japanese studies from Bucknell University and her master of business administration degree from the Wharton School at the University of Pennsylvania. She completed a program of study at the Center for Japanese Studies at Nanzan University in Nagoya, Japan and is fluent in Japanese. She is a Chartered Financial Analyst (CFA) charterholder and a former board member of the Boston Security Analysts Society.
55 For institutional use only. 201608-20423 Biographies
Joe Overdevest Portfolio Manager Joe Overdevest is a portfolio manager at Fidelity (Canada) Asset Management ULC. In this role, he manages the Canadian Focused Equity strategy and Canadian equity sub-portfolios of international strategies for institutional clients. He is a portfolio co-manager of Fidelity Global Natural Resources Fund and the equity sub-portfolio of Fidelity Canadian Asset Allocation Fund. He is also portfolio co-manager of the Canadian Systematic Equity and the Canadian Core Equity strategies. Before assuming his current role, Mr. Overdevest was a research analyst with Team Canada, the Canadian equity research team for Canadian equity strategies sold to Canadian investors. Previous areas of coverage include Canadian oil and gas, diversified financials, telecommunications, retail, consumer durables, and automotive parts. He has been in the investments industry since 2002. Mr. Overdevest earned his bachelor of business administration honours degree from Wilfrid Laurier University.
Jonathan Cummins, CFA Associate Portfolio Manager/Analyst Jonathan Cummins is an associate portfolio manager/analyst at Fidelity Institutional Asset ManagementSM (FIAMSM), an investment organization within Fidelity Investments’ asset management division that is dedicated to serving the needs of consultants and institutional investors, such as defined benefit and defined contribution plans, endowments and financial advisors. In this role, he supports the European regional portfolio of the FIAM International Growth strategy. Mr. Cummins maintains his responsibilities for covering European Industrials, which was his prior role as a research analyst before assuming his current position as associate portfolio manager/analyst. Prior to joining Fidelity, Mr. Cummins was a research analyst from 2003 to 2008 at F&C Asset Management. From 1999 to 2002, he was an analyst for SG Securities in London. Mr. Cummins earned his degree in economics from the University of Bristol in the United Kingdom. He is also a Chartered Financial Analyst (CFA) charterholder.
56 For institutional use only. 201608-20423 Biographies
Camille Carlstrom Associate Portfolio Manager/Analyst Camille Carlstrom is an associate portfolio manager/analyst at Fidelity Institutional Asset ManagementSM (FIAMSM), an investment organization within Fidelity Investments’ asset management division that is dedicated to serving the needs of consultants and institutional investors, such as defined benefit and defined contribution plans, endowments and financial advisors. In this role, Ms. Carlstrom is a member of the International Growth portfolio management team and is actively involved in the management of the FIAM Japan Growth strategy. In addition, she provides research coverage for the Japanese financial sector. Prior to joining Fidelity in 2012, Ms. Carlstrom was an analyst at Putnam Investments, Investment Division from October 2001 to September 2012. Her primary responsibilities included fundamental research coverage of more than 100 financial sector stocks, banks, insurance, credit cards, brokerage, and real estate, across developed and emerging Asia. From 2004 to 2009, she co-managed the Asian Financials Fund, which was a sleeve of a diversified fund specializing in Asian financials. From 2003 to 2009, she co-managed the early career program for equity research. Previously, she was a business analyst at Putnam Investments, Corporate Development from August 2000 to October 2001. Prior roles also include serving as an investment associate at Putnam Investments, Investment Division from September 1996 to July 1998 and an assistant national bank examiner at the Office of the Comptroller of the Currency, Supervision Department from June 1992 to August 1996. She has been in the investments industry since 1996. Ms. Carlstrom earned her bachelor of arts degree in finance and accounting from Villanova University and her master of business administration degree from the MIT Sloan School of Management.
Bruce MacDonald Associate Portfolio Manager/Analyst Bruce MacDonald is an associate portfolio manager/analyst at Fidelity Institutional Asset ManagementSM (FIAMSM), an investment organization within Fidelity Investments’ asset management division that is dedicated to serving the needs of consultants and institutional investors, such as defined benefit and defined contribution plans, endowments and financial advisors. In this role, he works as an Asian Industrials analyst and associate portfolio manager on the Asia ex Japan Growth strategy within the International Growth team in Hong Kong. Prior to joining Fidelity, Mr. MacDonald focused on global industrials and utilities at Martin Currie Investment Management in Edinburgh. Prior to that, he held research positions at Teather & Greenwood, Deutsche Bank, and Smith New Court. Before entering financial services, Mr. MacDonald began his career as an officer in the Royal Navy before working as aerospace engineer for Westland Helicopters. He has been in the investments industry since 1993. Mr. MacDonald earned his bachelor of science degree in aeronautical engineering from Glasgow University, his master of science degree in aerospace engineering from Princeton, and his master of business administration degree from the University of Bath.
57 For institutional use only. 201608-20423 Biographies
Sue Curran Senior Vice President, Relationship Manager Sue Curran is senior vice president, relationship manager at Fidelity Institutional Asset ManagementSM (FIAMSM), Fidelity Investments’ distribution and client service organization dedicated to meeting the needs of consultants and institutional investors, such as defined benefit and defined contribution plans, endowments and financial advisors. In this role, she is responsible for overall management of institutional client relationships, including many large public and corporate pension funds, throughout the U.S. Prior to joining Fidelity in 2001, Ms. Curran was a director at Deutsche Asset Management responsible for covering public funds in the Western region of the U.S. Before joining Deutsche Asset Management, she was a vice president of public funds at Bank of America. Prior to that, Ms. Curran held various management and sales positions at Merrill Lynch. She has been in the investments industry since 1980. Ms. Curran earned her bachelor of arts degree from Wheaton College. She also holds the Financial Industry Regulatory Authority (FINRA) Series 7 and 63 licenses.
58 For institutional use only. 201608-20423 775435.1.0 © 2016 FMR LLC. All rights reserved. FIAM-IA