Small Capitalization Value Equity Management

D. Kirk Henry, CFA Senior Portfolio Manager (617) 722-7051

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

Los Angeles Water and Power Employees’ Retirement Plan P R E S E N T S World-ex US Value Equity Management

October 13, 2010 LADWP 10/13/10 Table of Contents

Section A: Company Overview 3

Section B: Investment Process and Discipline 11

Section C: Market Overview 18

Section D: Performance Review 22

Section E: Country Weights and Portfolio Structure 35

Section F: Portfolio Holdings, Fees, Disclosures & Exhibits 38

2 LADWP 10/13/10

Company Overview

3 LADWP 10/13/10 The Boston Company Asset Management, LLC

Company Overview as of June 30, 2010

Total Assets Under Management: $32.5 billion

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

 A fundamental research approach to global equity management – 85 investment professionals – 7 investment teams – 16 core research analysts

 Consistent stock selection methodology US Equity Non-US Equity Large Cap $8.2 billion Large Cap $5.7 billion Mid Cap $3.1 billion Small Cap $74.4 million Small Mid Cap $1.9 billion Emerging Markets $8.2 billion Small Cap $4.3 billion Balanced $83.4 million Sector Strategies $460.1 million Global Equity Absolute Return Large Cap $176.9 million Market Neutral $132.2 million* Small Cap $40.4 million Micro Cap Absolute $194.2 million Absolute Return Growth $4.5 million Absolute Return Opportunistic $8.6 million

*As of August 31, 2010 approximately $37 million of the Market Neutral assets have been placed in administration in the UK and are currently unavailable. 4 Includes assets managed by investment personnel of The Boston Company Asset Management, LLC acting in their capacity as officers of affiliated entities. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

525 LADWP 10/13/10 The Boston Company Asset Management, LLC: Representative Client List

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

5 TBCAM representative client list consists of clients invested in separately managed and commingled accounts through an affiliate. The client list represents a cross section of clients by type, product and geographic region. The client list was not determined based upon performance-based criteria. It is not known whether the listed clients approve or disapprove of the adviser or the advisory services provided. LADWP 10/13/10 The Boston Company Asset Management, LLC Organizational Chart

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

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

Product Portfolio Teams Compliance Operations Development & Management

Global Equity Investment Relationship Administration Trading Systems & Data Management

Marketing & Core Research Finance Portfolio Implementation Communications

Quantitative Research Distribution Support

Portfolio Strategy

6 LADWP 10/13/10 Equity Teams Organizational Chart John Truschel, CFA Executive Vice President & Chief Investment Officer

Portfolio Team Strategy Team Members

Joseph M. Corrado, CFA US Small Cap & Small Mid Cap Value 6 David A. Daglio, CFA US Small & Mid Cap Opportunistic 8 Brian C. Ferguson US Large Cap Value 5 Sean P. Fitzgibbon, CFA Global Core & Market Neutral 12 D. Kirk Henry, CFA Non-US Value 17 Elizabeth Slover US Large Cap Growth 16

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

Shared Resources Strategy Team Members

Elizabeth Slover Core Research 16

Martin D. Stephan, CFA Quantitative Research 6

William Adams and George Saffaye Portfolio Strategy 6 David L. Brooks Trading 8

7 LADWP 10/13/10 EAFE Value Equity: Investment Team

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

8 *Includes tenure at The Bank of New York Mellon Corporation affiliates. LADWP 10/13/10 EAFE Value Equity: Investment Team continued

Research and Management Industry Years at Title Region/Sector Coverage Experience Firm* Frank J. Goguen, CFA Japan, Europe, Australia/ Director, Senior International Research Analyst BS, Boston College; 15 15 Global Pharmaceuticals MBA, Bentley College Ranjit Rajamani B.Com., Loyola College, Madras, India; Emerging Asia, Europe/ 15 3 Director, Senior International Research Analyst M.Com., Loyola College, Madras, India; Global Materials & Industrials MBA, University of Texas Derek M. Thieme BA, Assumption College; 12 10 Director, Senior International Research Analyst Emerging Asia, EMEA MBA, FW Olin Graduate School Anthony J. Ryan, CFA BSc, University of Sheffield, UK; 8 5 Director, Senior International Research Analyst Canada/Global Energy & Technology MSc, Imperial College, London; MBA, Boston College Thomas D. Grant, CFA BA, Williams College; 10 4 Vice President, International Research Analyst EMEA, Emerging Small Cap MBA, MIT Sloan School of Management Lawrence R. Curran, JR. BA, Middlebury College 9 9 Vice President, International Research Analyst Latin America, Japan Trading David L. Brooks 19 12 Managing Director, Head of Trading Cecelia L. Mead 18 6 Vice President, Senior Trader Elisabeth P. Thayer 13 13 Vice President, Trader Christopher Dorin 9 2 Vice President, Trader Ian Johnston, CFA 9 7 Senior Associate, Portfolio Coordinator

9 *Includes tenure at The Bank of New York Mellon Corporation affiliates. LADWP 10/13/10 Key Contacts

Portfolio Management Executive Management Relationship Management D. Kirk Henry, CFA David H. Cameron, CFA John D. Havens Director of Non-US Value Equity President & Chief Executive Officer Senior Relationship Manager BNY Mellon Center, Suite 024-0146 BNY Mellon Center, Suite 024-0146 BNY Mellon Center, Suite 024-0146 201 Washington St. 201 Washington St. 201 Washington St. Boston, MA 02108-4408 Boston, MA 02108-4408 Boston, MA 02108-4408 (617) 722-7051 (617) 248-6206 (617) 722-7031 [email protected] [email protected] [email protected] Clifford A. Smith, CFA John Truschel, CFA Portfolio Management Chief Investment Officer BNY Mellon Center, Suite 024-0146 BNY Mellon Center, Suite 024-0146 201 Washington St. 201 Washington St. Boston, MA 02108-4408 Boston, MA 02108-4408 (617) 722-7979 (617) 248-6224 [email protected] [email protected] William C. Jurik, CFA Portfolio Management BNY Mellon Center, Suite 024-0146 201 Washington St. Boston, MA 02108-4408 (617) 722-7351 [email protected]

William J. Adams Portfolio Strategist BNY Mellon Center, Suite 024-0146 201 Washington St. Boston, MA 02108-4408 (617) 722-7456 [email protected]

10 LADWP 10/13/10

Investment Process and Discipline

11 LADWP 10/13/10 EAFE Value Equity: Investment Philosophy

We believe successful non-US investing is achieved through a program that is:

Value-Oriented Research-Driven Risk Aware

 We combine traditional  We verify our quantitative  Preservation of capital measures of value with analysis with bottom-up is the key to long-term business momentum fundamental security analysis performance

 We seek to avoid the value trap

12 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 How We Select Stocks

We buy stocks that exhibit:

 Good value characteristics Valu e Fundamentals How much are How sound is the  Strong business fundamentals we paying? business?

 Positive business momentum

Business Momentum Is business getting better?

Prime Candidates

13 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Sell Decision

We sell stocks that violate any one of the circles:

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

 Negative business momentum

Business Momentum Is business getting worse?

14 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 EAFE Value Equity: Investment Process

Weekly Research Methodology and Portfolio Construction

Quantitative Analysis Input: FactSet database by country and market cap > $1 Billion (total universe 2,000 stocks) Action: Identify companies with strong value characteristics, attractive fundamentals and positive business momentum

Fundamental Analysis Input: Highest ranking stocks

Action: Analyze financials, local research, contact (visit) company, make recommendation

Portfolio Construction Input: Analysts’ research, client guidelines, internal controls

Action: EAFE Value Equity portfolio management team makes buy and sell decisions, maintains industry and country diversification

15 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 EAFE Value Equity: Investment Guidelines

Risk Controls

 Guidelines monitor the country weights Country Diversification  Normally, invested in a minimum of 15 countries

 Reviewed by country and total portfolio Sector Diversification  Generally, a maximum of 10 percentage points above index economic sector weight

Emerging Markets Exposure  None

Normally 100–150 Holdings  Reduces stock specific risk Maximum Investment  5 percent at market at time of purchase in One Stock

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

16 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Compliance with Active Value International Equity Guidelines

 Cash and cash-equivalents do not exceed 10% of the portfolio.

 Minimum 10 countries

 SEC Rule 144A securities with registration rights are permissible. Those instruments without registration rights must not exceed 10% of the portfolio

 Investment in Emerging Markets is prohibited

 Non currency derivatives are prohibited without written consent. Naked Options, futures, uncovered short positions and commodities are prohibited.

 Max 5% of the portfolio invested in any one issue

 The portfolio shall not hold any issue where more than 10% of the outstanding shares of that company are held by the manager in the total of all its accounts

 No securities shall be purchased on margin or sold short

 Minimum market cap of $200 million

 Sudan rules

17 LADWP 10/13/10

Market Overview

18 LADWP 10/13/10 2010 Non-US Markets – Investment Environment

 International markets kicked off the year with some volatility, delivering an admirable return in the first quarter that was dampened by weaker European currencies. Greece's sovereign debt troubles and a downgrade to Portuguese government bonds caused the euro to slide relative to the US dollar. That said, local performance reacted solidly to a wide range of positive indicators. The European Central Bank announced continued easing of collateral standards to support Greece, which ultimately benefited from further EU and IMF support. The German Ifo survey of business confidence registered 98.1, its highest level since June 2008. In addition, Japan staged the beginnings of a bear market rally. A surge in exports has supported a more optimistic growth forecast and the Bank of Japan (BOJ) resumed quantitative easing to keep pressure off the yen. Most markets were helped by the US Federal Reserve's congressional testimony, which outlined intentions to keep rates low for the foreseeable future. On a sector level, defensive industries in Consumer Staples and Telecommunication Services delivered strong performance, but Technology, long viewed as discretionary, was the top performer. The sector has demonstrated consistent resiliency due to inventory rebuilding and a desire among companies to increase productivity through technology investment. While the markets behaved with some trepidation at the beginning of the second quarter, fears dissipated following more encouraging data that the economy was beginning to turn the corner from recession to recovery. In fact, the global equity market rally that began in early March and continued into May was one of the strongest rebounds since the Great Depression era, with much of the rally centering on higher beta stocks with operational or financial leverage.

 After a strong rally from early February through mid-April, developed-market equities corrected rather sharply during the second quarter as a result of a combination of concerns surrounding Europe and China. Europe's ongoing debt problem weighed heavily on international equity markets during the period, while US dollar-based losses were compounded by weak currencies, except in Japan where the yen rose against the US dollar. The risk trade remained dormant due to several factors, including Europe's tenuous financial situation, tension in the Middle East and Korea, the Gulf of Mexico oil disaster, and weak US job creation. The euro traded at a four-year low against the US dollar, as the Continent's fiscal status remains fragile. Germany introduced a 10-month ban on naked short-selling, as European and US governments made progress in instituting regulations that would limit hedge fund and banking activity. Financial stocks were down on the news. The UK declined on BP's rising risk profile, a pullback in metal stocks, and fragmented election results. Japan also corrected substantially and lost yet another prime minister, who resigned after reneging on a promise to close the US marine base at Okinawa.

19 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 2010 Non-US Markets – Investment Environment – cont.

 International markets rebounded in July 2010 following the European bank stress test, which measured resiliency to a sharp recession or sovereign debt shock. The banks own sizeable levels of government debt issued by highly geared Greece and Spain. By many accounts, the tests were not severe enough and the surprisingly favorable results misleading. Nevertheless, with only seven banks in imminent need of capital totaling €3.5 billion, investors moved to take long positions in the sector. In addition, the Basel 3 rules on bank capital requirements were softened, adding further support to the sector. The rally also came on the heels of a very week second quarter that brought valuations down to more reasonable levels. A weaker US dollar complemented base currency performance and also helped lift commodity stocks during the period.

 Despite a series of M&A announcements during the month of August, developed-market equities pulled back after a short-term rebound in July as a result of renewed fears of a global double-dip recession following weak housing, consumption and industrial production figures from the US. In Europe, while Germany managed to post exceptional year-over-year GDP growth driven by their export industries and aided by the weaker euro, peripheral Eurozone countries such as Ireland, Spain and Portugal experienced widening bond spreads versus German bunds. Higher sovereign financing costs may exacerbate the difficulties these countries face during a period of austerity measures. Meanwhile, Japan's surging currency, now trading at its highest level versus the US dollar in nearly two decades, has arrested Japan's fledgling recovery. While the BOJ has hinted they may intervene in currency markets if the yen continues rising at this pace, the market doesn't believe they have the available firepower to make a meaningful dent in the trend. Until the Fed indicates unwillingness for further quantitative easing measures, the US dollar could remain under pressure.

20 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Portfolio Review/Investment Outlook

 The World ex-US Value portfolio underperformed its benchmark, the MSCI World ex US Index, during the year-to-date- period ended August 31, 2010. The Fund returned -8.9% during the period versus -6.5% for the benchmark.

 The portfolio was adversely affected by stock selection in several sectors, including Energy, Healthcare, Consumer Discretionary, and Materials. At the same time, the Fund benefited from strong stock selection in Consumer Staples, and a slight underweight position in the Information Technology. On a country basis, holdings in the United Kingdom, Australia, Canada, and Spain detracted most from results, while stock selection in Japan provided a significant boost to relative returns.

 We remain cautious on international equities in the near term. Developed markets, particularly UK, US, and peripheral Europe are still in the midst of deleveraging. Their economies remain fragile, and many are not dominant exporters that could benefit from the healthier dynamics playing out in emerging markets. After the European banks enjoyed a sharp rally in July from depressed levels, investors once again turned their attention to the ongoing risks associated with a global slowdown, austerity measures and the ability of the European banking system to weather another recession. Spreads for peripheral European sovereign bonds have widened once more versus German bunds, calling into question the ability for Europe to service its debt levels in a low or no growth environment. We remain more defensively positioned, with recent additions in healthcare and utilities, where we have increased German exposure. Domestic demand plays in Japan remain undervalued and out of favor. We are monitoring the Japanese real estate sector and have bought a package delivery company. Longer term, the pace of economic and earnings growth across developed countries is expected to be slower than initial post-recession estimates. This scenario should favor companies with defensive market positions, stable top line growth, and reasonable valuations.

21 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10

Performance Review

22 LADWP 10/13/10 Explanation of Mandate

Investment Management Style & Investment Process

 The Boston Company’s World ex-US Value Equity Management mandate is an active strategy which is value orientated in style.

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

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

Investment Objective

 Our goal is to exceed the return on the MSCI World ex-US IMI over a full market cycle

Mandate Size & Account Type

 LADWP is invested in our World ex-US Value Equity Management strategy in two separately managed accounts, one for the Retirement Fund and the other for the Retiree Health Benefits Fund.

 As of August 31, 2010 total World ex-US Value assets managed for LADWP were $347,399,162.

 As of August 31, 2010 total assets managed for the World ex-US Value Equity Management strategy across all Clients were $1.4B.

23 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Investment Objective

The Boston Company Asset Management, LLC’s investment objective for the Los Angeles Water & Power Employees’ Retirement Plan World ex-US Value portfolio is to outperform the MSCI World ex-US IMI over a full market cycle.

24 No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Investment Performance – Employees’ Retirement Plan

As of August 31, 2010

Percent 20.0

15.0

10.0

Current Portfolio 5.0 Market Value: $290,323,916 0.0

Market Value -5.0 At Inception: $270,000,000 -10.0

-15.0 Since Three Months YTD One Year Three Years Five Years Inception (3/7/05) Total Portfolio 1.04 -8.91 -3.49 -7.82 1.59 1.25 (Gross of fees) Total Portfolio 0.94 -9.15 -3.88 -8.20 1.19 0.91 (Net of fees) MSCI World ex-US IMI (Net) 4.48 -6.53 -0.36 -9.84 1.63 1.86

25 Returns for periods greater than one year are annualized. Past performance is not a guarantee for future performance. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. LADWP 10/13/10 Investment Performance – Retiree Health Benefits Fund

As of August 31, 2010

Percent 20.0

15.0

10.0

Current Portfolio 5.0 Market Value: $57,075,246 0.0

Market Value -5.0 At Inception: $58,790,094* -10.0

-15.0

-20.0 Three Months YTD Since Inception (9/9/09) Total Portfolio 0.75 -9.19 -4.89 (Gross of fees) Total Portfolio 0.64 -9.45 -5.29 (Net of fees) MSCI World ex-US IMI (Net) 4.48 -6.53 -2.19

26 *Including initial funding amount and all subsequent capital contributions. Returns for periods greater than one year are annualized. Past performance is not a guarantee for future performance. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. LADWP 10/13/10 EAFE Value Equity: Annual Composite Returns

Percent 50.0

40.0

30.0

20.0

10.0

0.0

-10.0

-20.0

-30.0

-40.0

-50.0 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 EAFE Value 31.25 -36.37 4.94 24.14 11.89 21.99 40.61 -9.85 -11.64 -1.04 28.03 11.82 10.51 11.35 (Gross of fees) MSCI EAFE 31.78 -43.38 11.17 26.34 13.54 20.25 38.61 -15.94 -21.44 -14.17 26.96 20.00 1.78 6.05

27 Past performance is not a guarantee for future performance. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. LADWP 10/13/10 Country Attribution

September 1, 2009 – August 31, 2010

LADWP MSCI World ex-US IMI Variance Attribution Analysis

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

Australia 4.6% -2.8% -0.3% 7.5% 7.8% 0.4% -2.9% -10.6% -0.7% -0.3% -0.7% 0.3% -0.7% Austria 0.0 0.0 0.0 0.4 -11.1 0.0 -0.4 11.1 0.0 0.0 0.0 0.0 0.0 Belgium 0.0 0.0 0.0 0.9 1.2 0.0 -0.9 -1.2 0.0 0.0 0.0 0.0 0.0 Canada 7.7 6.1 0.4 9.8 15.2 1.4 -2.0 -9.1 -1.0 -0.2 -0.8 0.2 -0.8 Denmark 0.0 0.0 0.0 0.9 5.7 0.0 -0.9 -5.7 0.0 0.0 0.0 0.0 0.0 Finland 2.6 -28.8 -0.7 1.1 -7.8 -0.1 1.5 -20.9 -0.6 0.0 -0.2 -0.3 -0.6 France 12.4 -10.9 -1.1 8.5 -10.2 -0.7 3.8 -0.7 -0.4 -0.3 -0.1 0.0 -0.4 Germany 7.0 -5.4 -0.1 6.9 -4.3 -0.2 0.1 -1.1 0.2 0.0 -0.1 0.0 0.0 Greece 0.3 -30.4 -0.1 0.5 -45.7 -0.2 -0.1 15.4 0.1 0.0 0.1 0.0 0.1 Hong Kong 2.5 18.5 0.3 2.2 17.4 0.3 0.3 1.1 0.0 0.1 0.0 0.0 0.1 Ireland 0.0 0.0 0.0 0.3 -28.8 -0.1 -0.3 28.8 0.1 0.1 0.0 0.0 0.1 Israel 0.1 -10.7 0.0 0.2 -2.4 0.0 -0.1 -8.3 0.0 0.1 0.0 0.0 0.1 Italy 3.0 -34.5 -1.1 2.9 -19.6 -0.5 0.2 -14.9 -0.6 0.0 -0.5 -0.1 -0.6 Japan 23.4 -6.1 -1.9 20.3 -5.9 -1.9 3.0 -0.1 0.0 0.0 -0.1 0.0 -0.1 Luxembourg 0.0 0.0 0.0 0.5 -1.4 0.0 -0.5 1.4 0.0 0.0 0.0 0.0 0.0 Netherlands 0.6 -14.9 -0.1 2.4 -1.6 0.0 -1.8 -13.3 0.0 0.0 -0.2 0.2 0.0 New Zealand 0.0 0.0 0.0 0.1 -1.1 0.0 -0.1 1.1 0.0 0.0 0.0 0.0 0.0 Norway 0.3 -31.8 -0.1 0.9 10.7 0.1 -0.6 -42.5 -0.2 -0.1 -0.2 0.1 -0.2 Portugal 0.0 0.0 0.0 0.3 -13.2 0.0 -0.3 13.2 0.0 0.0 0.0 0.0 0.0 Singapore 2.4 20.8 0.4 1.4 24.3 0.3 1.0 -3.5 0.1 0.2 0.0 0.0 0.1 Spain 1.4 -39.2 -0.8 3.5 -17.7 -0.5 -2.1 -21.5 -0.3 0.3 -0.9 0.4 -0.2 Sweden 1.5 8.0 0.1 2.6 10.3 0.3 -1.0 -2.2 -0.2 -0.1 -0.1 0.0 -0.1 Switzerland 6.3 13.6 0.8 6.7 6.7 0.5 -0.3 6.9 0.3 -0.1 0.4 0.0 0.3 United Kingdom 21.1 0.3 0.4 19.1 3.9 0.8 2.0 -3.7 -0.4 0.1 -0.7 0.0 -0.6 Cash 2.6 -1.1 0.0 0.0 0.0 0.0 2.6 -1.1 0.0 0.0 0.0 0.0 0.0 Total 100.0% -3.8% -3.8% 100.0% -0.4% -0.4% 0.0% -3.5% -3.5% 0.0% -4.2% 0.7% -3.5%

Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of 28 such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Sector Attribution

September 1, 2009 – August 31, 2010

LADWP MSCI World ex-US IMI Variance Attribution Analysis

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

Cons Discretionary 8.6% -4.4% -0.5% 10.1% 2.8% 0.1% -1.5% -7.2% -0.6% 0.0% -0.7% 0.1% -0.7% Consumer Staples 9.6 9.5 0.9 8.9 11.7 1.0 0.7 -2.1 -0.1 0.1 -0.2 0.0 -0.1 Energy 11.0 -10.9 -1.3 9.5 -3.6 -0.3 1.6 -7.3 -1.0 -0.1 -0.7 -0.1 -0.9 Financials 23.9 -9.4 -2.4 25.3 -9.1 -2.2 -1.5 -0.2 -0.2 0.2 -0.3 0.0 -0.1 Health Care 10.2 -2.4 0.0 7.4 1.6 0.1 2.8 -3.9 -0.2 0.1 -0.2 0.0 -0.2 Industrials 9.4 0.5 -0.1 12.5 3.4 0.3 -3.2 -2.9 -0.3 -0.1 -0.4 0.1 -0.4 Information Technology 5.4 -14.7 -0.5 5.2 -7.1 -0.5 0.2 -7.6 0.0 0.2 -0.4 0.1 0.0 Materials 8.2 1.7 0.2 11.1 9.8 1.0 -2.9 -8.1 -0.8 -0.2 -0.9 0.3 -0.8 Telecom Services 4.8 2.6 0.2 4.9 5.0 0.3 -0.1 -2.4 -0.1 0.0 -0.1 0.0 -0.2 Utilities 6.3 -8.1 -0.5 4.9 -6.4 -0.3 1.4 -1.8 -0.2 -0.1 0.0 0.0 -0.2 Cash 2.6 -1.1 0.0 0.0 0.0 0.0 2.6 -1.1 0.0 0.0 0.0 0.0 0.0 Total 100.0% -3.8% -3.8% 100.0% -0.4% -0.4% 0.0% -3.5% -3.5% 0.0% -3.7% 0.2% -3.5%

Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of 29 such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Performance Attribution Analysis

Individual Stock Contributors to Equity Return — September 1, 2009 – August 31, 2010

LADWP MSCI World ex-US IMI

Percent Stock Ending Percent Stock Ending Added Value Contribution Return Weight Added Value Contribution Return Weight Novartis AG 0.4% 15.9% 2.5% Nestle S.A. 0.3% 27.2% 1.5% Vodafone Group PLC 0.4 18.5 1.6 Vodafone Group PLC 0.2 18.5 1.1 DBS Group Holdings Ltd. 0.3 21.5 1.9 Rio Tinto PLC 0.2 31.2 0.6 Canadian Imperial Bank of Comm. 0.3 20.6 1.0 Potash Corp. of Saskatchewan 0.1 66.9 0.4 Centrica PLC 0.2 29.7 0.0 Novartis AG 0.1 15.9 0.9 Anglo American PLC 0.2 9.9 1.4 Barrick Gold Corp. 0.1 37.4 0.4 Nestle S.A. 0.2 26.0 0.0 British American Tobacco PLC 0.1 16.8 0.6 BOC Hong Kong (Holdings) Ltd. 0.2 16.8 0.0 Novo Nordisk A/S 0.1 42.7 0.3 Loblaw Cos. Ltd. 0.2 39.1 0.0 Standard Chartered PLC 0.1 21.2 0.5 Barrick Gold Corp. 0.2 28.1 0.4 Commonwealth Bank of Australia 0.1 22.2 0.6

2.6% 8.8% 1.4% 6.9%

Percent Stock Ending Percent Stock Ending Subtracted Value Contribution Return Weight Subtracted Value Contribution Return Weight Nokia Corp. -0.7% -36.3% 2.0% BP PLC -0.4% -31.2% 0.9% Nufarm Ltd. -0.6 -58.5 0.6 Toyota Motor Corp. -0.2 -19.9 0.8 Manulife Financial Corp. -0.5 -44.5 1.0 E.ON AG -0.2 -30.4 0.4 BP PLC -0.5 -31.2 1.3 Banco Santander S.A. -0.1 -20.0 0.8 Gamesa Corporacion Tecnolog. -0.5 -61.7 0.6 Mitsubishi UFJ Financial Group -0.1 -23.7 0.5 Resolution Ltd. -0.5 -35.7 1.5 Nokia Corp. -0.1 -36.3 0.3 E.ON AG -0.4 -30.4 1.3 Banco Bilbao Vizcaya Argentaria -0.1 -29.9 0.4 Sumitomo Mitsui Financial Group -0.4 -29.0 1.2 Research In Motion Ltd. -0.1 -41.4 0.2 Societe Generale S.A. (France) -0.4 -32.8 1.3 UniCredit S.p.A. -0.1 -31.2 0.3 Saras S.p.A. -0.3 -49.5 1.2 Roche Holding AG -0.1 -12.7 0.8

-4.8% 12.0% -1.5% 5.4%

Stock returns represent in-portfolio holdings. Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS 30 presentation that can be found at the end of this book along with other important disclosures. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time that you receive this report. A full list of holdings is available upon request. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 World ex-US Value Equity: Valuation Factors Out of Favor

3 months, ending August 31, 2010

*Returns (Annualized) Full Market Cycle Head Last 3 Months through 8/31/10 (1989-2010) Wind

Price/Earnings (FY1 & FY2) (0.44) 0.42 (0.86)

Price/Book (1.91) 0.21 (2.12)

Price/Cash Flow (1.89) 0.34 (2.23)

* Average returns of the bottom two quintiles (least expensive) of the MSCI World ex US Index compared to the returns of the MSCI World ex US index. I 31 Source: MSCI, Factset Note: The MSCI World ex US Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of May 27, 2010 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom . 736 LADWP 10/13/10 World ex-US Value Equity: Price Performance

September 23, 2009 – September 23, 2010

130.00 14.0%

120.00 12.0%

110.00 10.0% 100.00 8.0% 90.00 6.0% 80.00

EBIT Margin EBIT Margin % 4.0% 70.00

2.0% 60.00

50.00 0.0% Indexed Price Performance(Local Currency)

40.00 -2.0%

Saras S oil

Valuation EBIT Margin Sep-10 Refining Complexity PE 2011 PE 2012 P/B EV/Capacity 2010 2011 IBES 2011 IBES Saras 10 9.3x 6.7x 1.0x 8.5x 1% 3% 4% S Oil 6 9.9x 8.3x 1.9x 14.0x 3% 4% 4%

32 Source: MSCI, Factset, TBCAM

745 LADWP 10/13/10 Country Attribution

September 1, 2007 – August 31, 2010

LADWP MSCI World ex-US IMI Variance Attribution Analysis

Australia 3.5% -6.5% -0.4% 6.5% -4.6% -0.2% -3.0% -1.8% -0.3% -0.3% -0.1% 0.0% -0.3% Austria 0.0 0.0 0.0 0.5 -20.8 -0.1 -0.5 14.6 0.1 0.1 0.0 0.0 0.1 Belgium 0.3 3.7 0.0 1.0 -21.0 -0.2 -0.6 17.5 0.1 -0.1 0.3 0.0 0.3 Canada 5.6 -4.9 0.4 9.0 -2.4 0.1 -3.3 -2.4 0.3 -0.1 0.2 -0.2 -0.1 Denmark 0.0 0.0 0.0 0.9 -9.2 -0.1 -0.9 7.8 0.1 0.0 0.0 0.0 0.0 Finland 2.2 -27.4 -0.6 1.3 -19.8 -0.2 0.9 -4.7 -0.3 -0.1 -0.1 -0.1 -0.3 France 11.0 -9.4 -0.4 8.9 -13.7 -1.1 2.1 3.3 0.7 -0.1 0.5 -0.1 0.3 Germany 8.9 -7.7 -0.6 7.4 -11.8 -0.8 1.5 3.3 0.1 0.1 0.4 0.0 0.5 Greece 1.1 -18.6 0.3 0.6 -33.1 -0.2 0.5 7.5 0.5 -0.1 0.1 0.5 0.6 Hong Kong 2.6 5.1 0.0 2.1 -0.2 0.1 0.5 5.3 -0.1 0.0 0.1 0.0 0.1 Ireland 0.1 -31.2 0.0 0.5 -35.5 -0.2 -0.4 1.9 0.1 0.1 -0.1 0.0 0.1 Israel 0.0 -3.7 0.0 0.1 -0.8 0.0 0.0 -2.8 0.0 0.0 0.0 0.0 0.0 Italy 4.1 -29.4 -1.5 3.2 -20.5 -0.7 0.9 -5.3 -0.7 0.0 -0.4 0.0 -0.4 Japan 23.1 -7.8 -2.6 20.9 -10.1 -2.9 2.3 1.9 0.3 0.2 0.5 -0.2 0.5 Luxembourg 0.0 0.0 0.0 0.3 -0.9 0.1 -0.3 0.9 -0.1 -0.1 0.0 0.0 -0.1 Netherlands 1.3 -27.6 -0.4 2.4 -11.0 -0.3 -1.1 -12.3 -0.2 0.0 -0.3 0.0 -0.2 New Zealand 0.0 0.0 0.0 0.1 -9.9 0.0 -0.1 8.2 0.0 0.0 0.0 0.0 0.0 Norway 0.1 -12.0 0.0 0.9 -12.3 -0.1 -0.8 0.3 0.1 0.0 -0.1 0.0 0.0 Portugal 0.0 0.0 0.0 0.3 -15.6 0.0 -0.3 11.8 0.0 0.0 0.0 0.0 0.0 Singapore 1.9 1.8 0.2 1.2 1.9 0.1 0.7 0.0 0.1 0.1 0.0 0.0 0.1 Spain 1.0 -19.9 -0.3 3.7 -10.0 -0.2 -2.7 -7.8 -0.1 -0.1 -0.2 0.1 -0.3 Sweden 1.4 -11.6 -0.2 2.3 -7.2 0.1 -0.9 -3.7 -0.2 -0.1 0.0 0.0 -0.2 Switzerland 7.4 -0.5 0.0 6.6 -4.4 -0.3 0.8 3.5 0.2 0.0 0.3 0.0 0.3 United Kingdom 21.2 -10.3 -1.4 19.3 -11.0 -1.9 1.9 0.6 0.4 0.1 0.2 0.0 0.3 Cash 3.1 1.9 0.0 0.0 0.0 0.0 3.1 1.9 0.0 0.4 0.0 0.0 0.4 Total 100.0% -8.2% -8.2% 100.0% -9.9% -9.9% 0.0% 1.3% 1.3% 0.0% 1.3% 0.0% 1.3%

Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of 33 such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Sector Attribution

September 1, 2007 – August 31, 2010

LADWP MSCI World ex-US IMI Variance Attribution Analysis

Cons Discretionary 10.1% -11.3% -1.5% 10.1% -9.8% -0.6% 0.1% -1.2% -0.8% 0.0% -0.1% -0.2% -0.3% Consumer Staples 10.4 1.4 0.4 8.4 -0.9 0.0 2.0 2.3 0.4 0.2 0.3 0.1 0.5 Energy 11.0 -8.6 -0.5 9.6 -7.8 -0.5 1.4 -0.7 -0.1 0.1 0.0 -0.1 0.0 Financials 23.4 -17.0 -4.6 25.0 -16.5 -4.6 -1.7 -0.3 -0.1 0.2 -0.2 -0.2 -0.2 Health Care 9.8 -3.9 -0.4 7.3 -4.0 -0.5 2.5 0.2 0.2 0.0 0.1 0.0 0.1 Industrials 9.3 -6.7 -0.7 12.3 -10.2 -1.0 -3.0 2.9 0.3 0.0 0.4 -0.1 0.2 Information Technology 4.8 -16.8 -0.3 5.4 -15.2 -0.8 -0.7 -1.2 0.4 0.1 0.0 0.0 0.2 Materials 7.2 -1.4 0.0 10.4 -6.1 -0.2 -3.2 4.2 0.2 -0.1 0.5 -0.3 0.1 Telecom Services 5.3 -7.0 -0.4 5.2 -4.3 -0.2 0.1 -2.5 -0.2 0.0 -0.1 0.0 -0.1 Utilities 5.5 -0.5 0.2 5.3 -9.0 -0.7 0.1 7.2 0.9 -0.1 0.7 -0.1 0.5 Cash 3.1 1.9 0.0 0.0 0.0 0.0 3.1 1.9 0.0 0.4 0.0 0.0 0.4 Total 100.0% -8.2% -8.2% 100.0% -9.9% -9.9% 0.0% 1.3% 1.3% 0.6% 1.9% -1.3% 1.3%

Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of 34 such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10

Country Weights and Portfolio Structure

35 LADWP 10/13/10 Country Weights

As of August 31, 2009

Europe MSCI World LADWP ex-US IMI

Austria 0.0% 0.4% Belgium 0.0 0.9 Denmark 0.0 1.0 Finland 2.4 1.0 North America France 12.5 7.9 Asia/Pacific Germany 6.7 6.6 MSCI World MSCI World LADWP LADWP ex-US IMI Greece 0.0 0.3 ex-US IMI Canada 7.6% 10.3% Ireland 0.0 0.3 Australia 4.4% 7.5% Italy 3.9 2.5 Hong Kong 3.3 2.4 Total 7.6% 10.3% Luxembourg 0.0 0.4 Japan 24.9 20.5 Netherlands 0.5 2.3 New Zealand 0.0 0.1 Norway 0.8 0.8 Singapore 2.5 1.5 Portugal 0.0 0.3 Spain 1.3 3.1 Total 35.1% 32.0% Sweden 1.4 2.6 Switzerland 5.1 6.9 United Kingdom 19.3 19.3

Total 53.9% 56.6%

Middle East/Africa MSCI World LADWP ex-US IMI Israel 0.7% 0.8%

Total 0.7% 0.8%

The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important 36 disclosures. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Portfolio Structure

As of August 31, 2010

Ten Largest Holdings Economic Sector Weights (%)

Company Country Percent 10 Consumer Discretionary 10 Royal Dutch Shell PLC (CL A) United Kingdom 2.9 HSBC Holdings PLC United Kingdom 2.5 8 Novartis AG Switzerland 2.5 Consumer Staples 9 Total S.A. France 2.2 11 Nokia Corp. Finland 2.0 Energy 9 GlaxoSmithKline PLC United Kingdom 1.9 Sanofi-Aventis S.A. France 1.9 26 Financials DBS Group Holdings Ltd. Singapore 1.9 25 Unilever PLC United Kingdom 1.6 11 Hang Seng Bank Ltd. Hong Kong 1.5 Health Care 8

Total 20.9% 9 Industrials 13

5 Characteristics Information Technology 5

MSCI World 8 LADWP ex-US IMI Materials 11 Price/Earnings Ratio 11.5x 12.3x Telecommunication 4 Price/Book 1.1x 1.4x Services 5 Dividend Yield 3.8% 3.1% Wtd. Avg. Market Cap $43.1B $40.6B Utilities 4 5 Median Market Cap $13.2B $1.0B Number of Holdings 136 3,623 0 5 10 15 20 25 30 LADWP MSCI World ex-US IMI

The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities 37 may not remain in the portfolio at the time that you receive this report. A full list of holdings is available upon request. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10

Portfolio Holdings, Fees, Disclosures & Exhibits

38 LADWP 10/13/10 Los Angeles Department of Water & Power Fee Schedule

43 Basis Points on the First $250 Million

26 Basis Points Thereafter

39 LADWP 10/13/10 Portfolio Holdings by Country

As of August 31, 2010

Asia/Pacific 35.1% Japan (continued) Germany 6.7% United Kingdom 19.3% Allianz SE 0.6 Australia 4.4% Sumitomo Corp. 0.2% Anglo American PLC 1.4 BlueScope Steel Ltd. 0.3 Sumitomo Mitsui Financial Group Inc. 1.2 Bayer AG 0.8 BAE Systems PLC 0.7 Tokyo Electron Ltd. 0.5 Celesio AG 0.4 BP PLC 1.3 Foster's Group Ltd. 0.7 Daimler AG 0.6 Insurance Australia Group Ltd. 0.7 Tokyo Steel Manufacturing Co. Ltd. 0.8 Drax Group PLC 0.7 National Australia Bank Ltd. 1.1 Toyoda Gosei Co. Ltd. 0.6 Deutsche Lufthansa AG 0.5 GlaxoSmithKline PLC 1.9 Toyota Motor Corp. 1.1 Deutsche Telekom AG 0.3 Home Retail Group PLC 0.7 Nufarm Ltd. 0.6 E.ON AG 1.3 Primary Health Care Ltd. 0.5 Trend Micro Inc. 0.1 HSBC Holdings PLC 2.5 QBE Insurance Group Ltd. 0.5 Ushio Inc. 0.5 Muenchener Rueckversicherungs-Gesell 0.8 Lonmin PLC 0.1 Yamato Holdings Co. Ltd. 0.4 RWE AG 0.5 QinetiQ Group PLC 0.4 Hong Kong 3.3% Siemens AG 0.7 Reed Elsevier PLC 0.6 Esprit Holdings Ltd. 0.7 Singapore 2.5% Italy 3.9% Resolution Ltd. 1.5 Hang Seng Bank Ltd. 1.5 DBS Group Holdings Ltd. 1.9 Rexam PLC 0.7 Hutchison Whampoa Ltd. 0.9 United Overseas Bank Ltd. 0.7 Banco Popolare S.C. 0.2 Buzzi Unicem S.p.A. 0.3 Royal Dutch Shell PLC (CL A) 1.8 Techtronic Industries Co. Ltd. 0.1 Europe 53.9% ENI S.p.A. 0.5 Royal Dutch Shell PLC (CL A) 1.1 Japan 24.9% Finmeccanica S.p.A. 0.9 Tesco PLC 0.4 Astellas Pharma Inc. 0.6 Parmalat S.p.A. 0.3 Unilever PLC 1.6 Finland 2.4% Vodafone Group PLC 1.5 Bridgestone Corp. 0.6 Nokia Corp. 2.0 Saras S.p.A. 1.2 Chuo Mitsui Trust Holdings Inc. 1.2 UPM-Kymmene Oyj 0.4 Unipol Gruppo Finanziario S.p.A. 0.5 Wellstream Holdings PLC 0.4 Coca-Cola West Co. Ltd. 0.2 Credit Saison Co. Ltd. 0.4 France 12.5% Netherlands 0.5% Daiwa House Industry Co. Ltd. 0.8 Carrefour S.A. 1.0 Aegon N.V. 0.5 Middle East/Africa 0.7% East Japan Railway Co. 1.0 Credit Agricole S.A. 0.6 Norway 0.8% Inpex Corp. 0.7 Danone S.A. 0.7 Norsk Hydro ASA 0.8 Israel 0.7% Kao Corp. 0.4 European Aeronautic Defence & Space 0.8 Teva Pharmaceutical Industries Ltd. 0.7 KDDI Corp. 1.3 France Telecom 1.1 Spain 1.3% Matsumotokiyoshi Holdings Co. Ltd. 0.6 GDF Suez S.A. 1.2 Gamesa Corporacion Tecnologica S.A. 0.6 Medipal Holdings Corp. 0.4 Lagardere S.C.A. 0.4 Iberdrola S.A. 0.7 North America 7.6% Peugeot S.A. 0.3 Mitsubishi Chemical Holdings Corp. 0.5 Sweden 1.4% Canada 7.6% Mitsubishi Gas Chemical Co. Inc. 0.6 Sanofi-Aventis S.A. 1.9 Barrick Gold Corp. 0.4 Societe Generale S.A. (France) 1.3 Ericsson Sh B 0.7 Mitsubishi UFJ Financial Group Inc. 1.4 Investor AB 0.7 Canadian Imperial Bank of Commerce 1.0 Murata Manufacturing Co. Ltd. 0.2 Total S.A. 0.9 EnCana Corp. 0.6 NEC Corp. 0.4 Total S.A. ADS 1.2 Switzerland 5.1% Husky Energy Inc. 0.6 Nintendo Co. Ltd. 0.3 Vivendi S.A. 1.0 Clariant AG 0.4 Manulife Financial Corp. 1.0 Nippon Express Co. Ltd. 0.2 Novartis AG 2.5 National Bank of Canada 0.6 Nomura Holdings Inc. 0.6 Roche Holding AG 1.2 RONA inc. 0.5 Nomura Research Institute Ltd. 0.6 UBS AG 1.0 Shoppers Drug Mart Corp. 0.4 Panasonic Corp. 0.7 Suncor Energy Inc. 0.9 Rengo Co. Ltd. 0.5 TMX Group Inc. 0.6 Ricoh Co. Ltd. 0.4 Viterra Inc. 0.7 Ryohin Keikaku Co. Ltd. 0.7 Sankyo Co. Ltd. 0.5 Secom Co. Ltd. 0.7 Cash 2.7% Seven & I Holdings Co. Ltd. 1.2 Shimachu Co. Ltd. 0.6 Shimizu Corp. 0.6 Shin-Etsu Chemical Co. Ltd. 0.6

The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important 40 disclosures. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time that you receive this report. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Portfolio Holdings by Sector

As of August 31, 2010

Consumer Discretionary 10.0% Energy 11.3% Health Care 11.0% Materials 8.2% Bridgestone Corp. 0.6 BP PLC 1.3 Astellas Pharma Inc. 0.6 Anglo American PLC 1.4 Daimler AG 0.6 EnCana Corp. 0.6 Bayer AG 0.8 Barrick Gold Corp. 0.4 Esprit Holdings Ltd. 0.7 ENI S.p.A. 0.5 Celesio AG 0.4 BlueScope Steel Ltd. 0.3 Home Retail Group PLC 0.7 Husky Energy Inc. 0.6 GlaxoSmithKline PLC 1.9 Buzzi Unicem S.p.A. 0.3 Lagardere S.C.A. 0.4 Inpex Corp. 0.7 Medipal Holdings Corp. 0.4 Clariant AG 0.4 Panasonic Corp. 0.7 Royal Dutch Shell PLC (CL A) 1.8 Novartis AG 2.5 Lonmin PLC 0.1 Peugeot S.A. 0.3 Royal Dutch Shell PLC (CL A) 1.1 Primary Health Care Ltd. 0.5 Mitsubishi Chemical Holdings Corp. 0.5 Reed Elsevier PLC 0.6 Saras S.p.A. 1.2 Roche Holding AG 1.2 Mitsubishi Gas Chemical Co. Inc. 0.6 RONA inc. 0.5 Suncor Energy Inc. 0.9 Sanofi-Aventis S.A. 1.9 Norsk Hydro ASA 0.8 Ryohin Keikaku Co. Ltd. 0.7 Total S.A. 0.9 Teva Pharmaceutical Industries Ltd. ADS 0.7 Nufarm Ltd. 0.6 Sankyo Co. Ltd. 0.5 Total S.A. ADS 1.2 Rengo Co. Ltd. 0.5 Shimachu Co. Ltd. 0.6 Wellstream Holdings PLC 0.4 Industrials 9.1% Rexam PLC 0.7 Techtronic Industries Co. Ltd. 0.1 BAE Systems PLC 0.7 Shin-Etsu Chemical Co. Ltd. 0.6 Toyoda Gosei Co. Ltd. 0.6 Financials 25.6% Tokyo Steel Manufacturing Co. Ltd. 0.8 Toyota Motor Corp. 1.1 Deutsche Lufthansa AG 0.5 UPM-Kymmene Oyj 0.4 Aegon N.V. 0.5 East Japan Railway Co. 1.0 Vivendi S.A. 1.0 Allianz SE 0.6 European Aeronautic Defence & Space Co. 0.8 Banco Popolare S.C. 0.2 Finmeccanica S.p.A. 0.9 Telecommunication Consumer Staples 8.3% Canadian Imperial Bank of Commerce 1.0 Gamesa Corporacion Tecnologica S.A. 0.6 Services 4.2% Carrefour S.A. 1.0 Chuo Mitsui Trust Holdings Inc. 1.2 Hutchison Whampoa Ltd. 0.9 Deutsche Telekom AG 0.3 Coca-Cola West Co. Ltd. 0.2 Credit Agricole S.A. 0.6 Nippon Express Co. Ltd. 0.2 France Telecom 1.1 Danone S.A. 0.7 Credit Saison Co. Ltd. 0.4 QinetiQ Group PLC 0.4 Foster's Group Ltd. 0.7 Daiwa House Industry Co. Ltd. 0.8 Secom Co. Ltd. 0.7 KDDI Corp. 1.3 Kao Corp. 0.4 DBS Group Holdings Ltd. 1.9 Shimizu Corp. 0.6 Vodafone Group PLC 1.5 Matsumotokiyoshi Holdings Co. Ltd. 0.6 Hang Seng Bank Ltd. 1.5 Siemens AG 0.7 Parmalat S.p.A. 0.3 HSBC Holdings PLC 2.5 Sumitomo Corp. 0.2 Utilities 4.3% Seven & I Holdings Co. Ltd. 1.2 Insurance Australia Group Ltd. 0.7 Ushio Inc. 0.5 Drax Group PLC 0.7 Shoppers Drug Mart Corp. 0.4 Investor AB 0.7 Yamato Holdings Co. Ltd. 0.4 E.ON AG 1.3 Tesco PLC 0.4 Manulife Financial Corp. 1.0 GDF Suez S.A. 1.2 Unilever PLC 1.6 Mitsubishi UFJ Financial Group Inc. 1.4 Information Technology 5.1% Iberdrola S.A. 0.7 Viterra Inc. 0.7 Muenchener Rueckversicherungs-Gese.0.8 RWE AG 0.5 National Australia Bank Ltd. 1.1 Ericsson Sh B 0.7 Murata Manufacturing Co. Ltd. 0.2 National Bank of Canada 0.6 NEC Corp. 0.4 Cash 2.7% Nomura Holdings Inc. 0.6 QBE Insurance Group Ltd. 0.5 Nintendo Co. Ltd. 0.3 Nokia Corp. 2.0 Resolution Ltd. 1.5 Nomura Research Institute Ltd. 0.6 Societe Generale S.A. (France) 1.3 Sumitomo Mitsui Financial Group Inc. 1.2 Ricoh Co. Ltd. 0.4 Tokyo Electron Ltd. 0.5 TMX Group Inc. 0.6 Trend Micro Inc. 0.1 UBS AG 1.0 Unipol Gruppo Finanziario S.p.A. 0.5 United Overseas Bank Ltd. 0.7

The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important 41 disclosures. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time that you receive this report. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Country Attribution

January 1, 2010 – August 31, 2010

LADWP MSCI World ex-US IMI Variance Attribution Analysis

Australia 4.8% -17.0% -0.9% 7.6% -8.2% -0.7% -2.8% -8.8% -0.2% 0.0% -0.7% 0.3% -0.4% Austria 0.0 0.0 0.0 0.4 -12.2 -0.1 -0.4 12.2 0.1 0.0 0.0 0.0 0.0 Belgium 0.0 0.0 0.0 0.9 -7.1 0.0 -0.9 7.1 0.0 0.0 0.0 0.0 0.0 Canada 8.1 -4.6 -0.4 10.1 0.7 0.1 -2.0 -5.3 -0.5 -0.1 -0.5 0.1 -0.5 Denmark 0.0 0.0 0.0 1.0 4.8 0.0 -1.0 -4.8 0.0 -0.1 0.0 0.0 -0.1 Finland 2.6 -24.0 -0.6 1.1 -10.0 -0.1 1.5 -14.0 -0.5 0.0 -0.1 -0.2 -0.4 France 12.5 -17.2 -2.0 8.3 -16.6 -1.4 4.2 -0.6 -0.6 -0.4 -0.1 0.0 -0.4 Germany 6.4 -15.3 -0.9 6.8 -12.0 -0.8 -0.3 -3.3 -0.1 0.0 -0.3 0.0 -0.2 Greece 0.3 -15.7 -0.1 0.4 -38.2 -0.2 -0.1 22.5 0.1 0.0 0.2 0.0 0.2 Hong Kong 2.8 7.0 0.1 2.2 3.9 0.1 0.6 3.1 0.0 0.1 0.0 0.0 0.1 Ireland 0.0 0.0 0.0 0.3 -25.2 -0.1 -0.3 25.2 0.1 0.1 0.0 0.0 0.1 Israel 0.2 -10.7 0.0 0.3 -2.4 0.0 -0.1 -8.3 0.0 0.1 0.0 0.0 0.1 Italy 3.1 -35.5 -1.2 2.7 -22.1 -0.6 0.5 -13.4 -0.6 0.0 -0.5 -0.1 -0.6 Japan 23.7 3.6 0.2 20.7 -0.9 -0.8 3.0 4.5 1.0 0.2 0.8 0.1 1.1 Luxembourg 0.0 0.0 0.0 0.5 -22.6 -0.1 -0.5 22.6 0.1 0.1 0.0 0.0 0.1 Netherlands 0.6 -23.1 -0.1 2.4 -12.3 -0.3 -1.9 -10.8 0.1 0.1 -0.2 0.2 0.0 New Zealand 0.0 0.0 0.0 0.1 -9.6 0.0 -0.1 9.6 0.0 0.0 0.0 0.0 0.0 Norway 0.4 -39.6 -0.2 0.9 -13.5 -0.1 -0.4 -26.0 0.0 0.1 -0.3 0.1 -0.1 Portugal 0.0 0.0 0.0 0.3 -19.9 0.0 -0.3 19.9 0.0 0.0 0.0 0.0 0.0 Singapore 2.4 -3.2 -0.1 1.4 6.9 0.1 0.9 -10.1 -0.2 0.1 -0.1 -0.1 -0.1 Spain 1.8 -43.4 -0.9 3.3 -22.5 -0.8 -1.5 -20.9 -0.1 0.3 -0.9 0.4 -0.2 Sweden 1.5 2.1 0.1 2.6 3.3 0.1 -1.1 -1.3 0.0 -0.1 0.0 0.0 -0.1 Switzerland 5.8 1.2 0.0 6.6 -0.7 0.0 -0.8 1.9 0.0 -0.1 0.1 0.0 0.0 United Kingdom 20.0 -10.7 -2.2 19.0 -4.9 -0.9 1.0 -5.7 -1.3 0.0 -1.2 -0.1 -1.3 Cash 2.9 -2.1 -0.1 0.0 0.0 0.0 2.9 -2.1 -0.1 0.0 0.0 0.0 0.0 Total 100.0% -9.0% -9.0% 100.0% -6.5% -6.5% 0.0% -2.5% -2.5% 0.7% -3.9% 0.8% -2.5%

Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of 42 such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Sector Attribution

January 1, 2010 – August 31, 2010

LADWP MSCI World ex-US IMI Variance Attribution Analysis

Cons Discretionary 9.1% -4.7% -0.6% 10.2% -2.1% -0.3% -1.1% -2.7% -0.2% -0.1% -0.3% 0.0% -0.4% Consumer Staples 9.1 2.4 0.2 9.0 -0.2 0.1 0.1 2.7 0.1 0.1 0.2 0.1 0.3 Energy 11.3 -21.0 -2.5 9.4 -15.1 -1.5 1.9 -5.9 -1.0 -0.1 -0.7 -0.1 -0.9 Financials 24.2 -9.4 -2.5 25.0 -9.1 -2.2 -0.8 -0.3 -0.2 0.0 -0.2 0.0 -0.2 Health Care 10.0 -14.6 -1.3 7.4 -7.2 -0.5 2.7 -7.4 -0.9 0.0 -0.5 -0.2 -0.7 Industrials 9.4 -5.3 -0.6 12.7 -2.5 -0.4 -3.2 -2.8 -0.1 -0.1 -0.4 0.1 -0.4 Information Technology 5.2 -13.0 -0.4 5.3 -8.0 -0.5 -0.1 -5.1 0.2 0.2 -0.2 0.2 0.2 Materials 8.3 -10.4 -0.8 11.3 -6.6 -0.7 -3.1 -3.8 -0.1 0.0 -0.6 0.2 -0.4 Telecom Services 4.5 -1.5 0.0 4.8 -1.6 0.0 -0.3 0.1 0.0 -0.1 0.0 0.0 0.0 Utilities 5.8 -11.1 -0.7 4.8 -9.6 -0.4 1.0 -1.5 -0.3 -0.1 0.0 0.0 -0.1 Cash 2.9 -2.1 -0.1 0.0 0.0 0.0 2.9 -2.1 -0.1 0.0 0.0 0.0 0.0 Total 100.0% -9.0% -9.0% 100.0% -6.5% -6.5% 0.0% -2.5% -2.5% -0.1% -2.7% 0.3% -2.5%

Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of 43 such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS presentation that can be found at the end of this book along with other important disclosures. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. LADWP 10/13/10 Performance Attribution Analysis

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

LADWP MSCI World ex-US IMI

Percent Stock Ending Percent Stock Ending Added Value Contribution Return Weight Added Value Contribution Return Weight Seven & I Holdings Co. Ltd. 0.2% 15.2% 1.2% Nestle S.A. 0.1% 9.0% 1.5% Lihir Gold Ltd. 0.2 59.0 0.0 Vodafone Group PLC 0.1 8.4 1.1 Loblaw Cos. Ltd. 0.1 29.0 0.0 Potash Corp. of Saskatchewan 0.1 35.2 0.4 UBS AG 0.1 9.1 1.0 Novo Nordisk A/S 0.1 36.1 0.3 European Aero. Defence & Space 0.1 9.2 0.8 Lloyds Banking Group PLC 0.1 30.5 0.4 Mitsui O.S.K. Lines Ltd. 0.1 39.2 0.0 AstraZeneca PLC 0.1 11.1 0.6 Aeon Co. Ltd. 0.1 38.5 0.0 British American Tobacco PLC 0.1 9.5 0.6 Canadian Imperial Bank of Comm. 0.1 6.4 1.0 Barrick Gold Corp. 0.1 19.1 0.4 Vodafone Group PLC 0.1 8.4 1.6 UBS AG 0.0 9.1 0.5 Nintendo Co. Ltd. 0.1 19.9 0.3 Hennes & Mauritz AB 0.0 20.7 0.3

1.2% 5.9% 0.8% 6.1%

Percent Stock Ending Percent Stock Ending Subtracted Value Contribution Return Weight Subtracted Value Contribution Return Weight BP PLC -0.9% -39.4% 1.3% BP PLC -0.6% -39.4% 0.9% Nokia Corp. -0.6 -30.7 2.0 Total S.A. -0.3 -25.8 0.8 Nufarm Ltd. -0.6 -58.5 0.6 Banco Santander S.A. -0.2 -26.2 0.8 Gamesa Corporacion Tecnolog. -0.5 -61.7 0.6 Toyota Motor Corp. -0.2 -17.8 0.8 Sanofi-Aventis S.A. -0.5 -24.4 1.9 E.ON AG -0.2 -29.7 0.4 Manulife Financial Corp. -0.5 -38.5 1.0 Roche Holding AG -0.2 -18.2 0.8 E.ON AG -0.4 -29.7 1.3 HSBC Holdings PLC -0.2 -11.3 1.5 Resolution Ltd. -0.4 -29.2 1.5 Banco Bilbao Vizcaya Argentaria -0.2 -32.5 0.4 Total S.A. ADS -0.3 -25.3 1.2 Sanofi-Aventis S.A. -0.2 -24.4 0.5 Finmeccanica S.p.A. -0.3 -35.1 0.9 Telefonica S.A. -0.1 -18.0 0.8

-5.0% 12.3% -2.4% 7.7%

Stock returns represent in-portfolio holdings. Performance history of less than two years may not provide an adequate basis from which to determine the performance of a strategy. Past performance of such a strategy is not a guarantee of any future results. The information shown above is supplemental to a fully compliant GIPS 44 presentation that can be found at the end of this book along with other important disclosures. It should not be assumed that securities identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time that you receive this report. A full list of holdings is available upon request. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. World ex US Value Equity: Disclosure

Total Composite Total Firm Gross-of-Fees Net-of-Fees Benchmark Number of Internal Assets Assets Period Return Return Return Portfolios Dispersion (USD Million) (USD Million)

2005 * 14.04% 13.40% 17.39% 2 N/M $483 $59,997 2006 23.26% 22.24% 25.71% 1 N/M $357 $72,747 2007 4.77% 3.89% 12.44% 1 N/M $374 $53,308 2008 -36.33% -36.89% -43.56% 1 N/M $238 $26,213 2009 33.45% 32.35% 33.67% 5 N/M $1,580 $34,783 * Partial period represents data from 5/1/2005

Compliance Statement The Boston Company Asset Management, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). Definition of the Firm The firm is defined as The Boston Company Asset Management, LLC (TBCAM), a registered investment advisor established in 1970 and wholly-owned indirect subsidiary of The Bank of New York Mellon Corporation. Effective January 1, 2008, The Boston Company Asset Management, LLC includes the following subsidiary, The Boston Company Asset Management NY, LLC. The Boston Company Asset Management NY, LLC was formed in 2007. Prior to 2007 the employees were part of The Boston Company Asset Management, LLC. This Composite may also include assets managed by TBCAM personnel serving as dual officers of affiliated companies other than wrap accounts managed in a dual officer capacity. As of December 31, 2009, total firm assets were $34.8 billion of which $19.3 billion represented assets managed in a dual officer capacity. Composite Description The World ex US Value Equity Composite creation date is May 1, 2005. The Composite is composed of all fee-paying, discretionary accounts managed by TBCAM in this investment style. The World ex US Value Equity Composite represents an equity strategy that primarily invests in value companies from developed market countries around the world, excluding the United States. Effective January 1, 2006, portfolios that come under management on the twenty-first day of the month or earlier join the Composite the following month; portfolios that come under management after the twenty-first day of the month join the Composite after one full calendar month under management. Prior to January 1, 2006, new portfolios were included in the Composite after one full calendar month under management. Terminated portfolios remain in the historical record through the last full calendar month under management. Returns include realized and unrealized gains and losses plus accrued income. The performance of the Composite is based in U.S. dollars and is net of withholding taxes on dividends and interest income where applicable. Additional information regarding policies for calculating and reporting returns is available upon request. The Composite does not include the performance of accounts with investment restrictions that significantly hinder TBCAM from fully implementing its intended strategy. A complete list and description of the firm’s composites is available upon request. Benchmark The Composite’s benchmark is the MSCI EAFE plus Canada Index. The benchmark is used for comparative purposes only and is not covered by the Report of Independent Accountants. The MSCI EAFE plus Canada Index measures the performance of global developed equity markets excluding the U.S. and is presented net of withholding taxes. Internal Dispersion The internal dispersion of annual returns is measured by the standard deviation of asset-weighted portfolio returns represented within the Composite for the full year. A standard deviation is not presented for periods with fewer than six portfolios participating for the full year. Minimum Account Size To Be Included In Composite To be included in the Composite, portfolios must meet the minimum account size requirement of $1 million. N/M = not meaningful World ex US Value Equity: Disclosure continued To be included in the Composite, portfolios must meet the minimum account size requirement of $1 million. Fee Schedule Except where noted, performance is stated gross of management fees. For all time periods, net performance is calculated by subtracting the highest published management fee for the strategy (since inception) from the gross performance, on a monthly basis. The highest published management fee is 85 basis points. The current standard fee schedule for the World ex US Value Equity strategy is as follows: 80 Basis Points on the first $20 million 70 Basis Points on the next $20 million 60 Basis Points on the next $60 million 40 Basis Points thereafter Verification TBCAM has been verified for the years 2003 - 2008 by an independent verifier. A copy of the verification report is available upon request. Other Information (The following information is not covered by the Report of Independent Accountants.) BNY Mellon Asset Management is the umbrella organization of The Bank of New York Mellon Corporation’s affiliated investment management firms and global distribution companies. To derive Ten Largest Holdings, Characteristics, Economic Sector Weightings, Country Weightings and Portfolio Holdings for presentation purposes, the portfolio manager has identified a representative institutional account to be used as a proxy for the strategy. This portfolio data should not be relied upon as a complete listing of the Account’s holdings (or of an Account’s top holdings) as information on particular holdings may be withheld if it is in the Account’s best interest to do so. Portfolio holdings and allocations are subject to change without notice and may not represent current or future portfolio composition. The Account data is “as of” the date indicated. The information provided in this document should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed do not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein. Investments made by TBCAM for the portfolios it manages may differ significantly in terms of security holdings, industry weightings and asset allocation from those of the benchmark. Accordingly, investment results and volatility of the portfolios may differ from those of the benchmark. Also, unlike the portfolios, the indices noted in this presentation are unmanaged, are not available for direct investment, and are not subject to management fees, transaction costs or other types of expenses that the portfolios may incur. Because of these differences, investors should carefully consider these limitations when evaluating the performance in comparison to benchmark data as provided herein. The impact of fees on performance can be significant. A $125 million account with a fee schedule of the following: .008 for the first $20 million, .007 on the next $20 million, .006 on the next $60 million and .004 on the next $25 million, assuming an annual gross of fee return of 12%, would realize an annual net of fee return of 11.39%. This assumes that 1/12 of the annual fee is deducted on a monthly basis from the monthly account rate of return. This presentation or any portion thereof may not be copied or distributed without TBCAM’s prior written approval. Statements are correct as of the date of the material only. This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorized. The use of corporate names or logos in this presentation, other than those of The Boston Company Asset Management, LLC or its affiliates, is for illustrative purposes only and rights to any logos, trademarks or servicemarks are owned by their respective entities. It is not known whether the listed companies endorse or disapprove of TBCAM or any advisory services provided. Some information contained herein has been obtained from third-party sources that are believed to be reliable, but the information has not been independently verified by TBCAM. TBCAM makes no representations as to the accuracy or the completeness of such information and has no obligation to revise or update any statement herein for any reason.