Investment Manager Summary
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Item No. 1: Annual Presentation by Dimensional Fund Advisors – Active Global Real Estate Securities Manager (August 10, 2016, Regular Retirement Board Meeting) INVESTMENT MANAGER SUMMARY MANAGEMENT Firm Name Dimensional Fund Advisors (DFA) Manager Tenure with Fund 3.5 Years Investment Strategy/Vehicle Global Real Estate Securities Contract Expiration 2/28/2019 ASSETS Total Firm AUM (as of 6/30/16) $415 Billion Total Firm Assets in Strategy (as of 6/30/16) $8.6 Billion RP - $ 24.1 Million Total Assets Managed for the Plan HP - $ 6.0 Million PERFORMANCE as of 6/30/16 YTD 1-Year 3-Year ITD¹ DFA Global Real Estate (est. gross) 12.69% 18.13% 11.58% 9.28% DFA Global Real Estate (net) 12.56% 17.85% 11.22% 8.94% FTSE EPRA/NAREIT Developed Index 9.38% 12.57% 8.94% 7.00% Difference (net) 3.18% 5.28% 2.28% 1.94% ¹ Inception to date 3/31/2013 FEES Current Fee 0.24% Net Expense Ratio WATCH STATUS N/A PREVIOUSLY DISCLOSED LITIGATION N/A 1 Los Angeles Water and Power Employees’ Retirement Plan August 10, 2016 Joseph Chi, CFA, Co-Head of Portfolio Management and Vice President Glenn S. Granz, CFA, Regional Director This information is provided for registered investment advisors and institutional investors, and is not intended for public use. Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus carefully before investing. Prospectuses are available by calling Dimensional Fund Advisors collect at (512) 306-7400 or at www.dimensional.com. Dimensional funds are distributed by DFA Securities LLC. #17625-1011 REITs Agenda Agenda 1. Section A: Dimensional Overview 2. Section B: Investment Process and Discipline 3. Section C: Market Overview 4. Section D: Performance Review 5. Section E: Portfolio Review and Characteristics 6. Section F: Fee Schedule 7. Appendix Section A: Dimensional Overview SC: GC40 Dimensional Fund Advisors ABOUT THE FIRM Dimensional is a global investment firm that has been serving investors for more than 30 years. A DIFFERENT APPROACH TO INVESTING A strong belief in markets frees us to think differently about investing. PUTTING RESEARCH INTO PRACTICE We identify compelling research and apply it to practical investing. A CLEAR VIEW OF EXPECTED RETURNS Decades of research and rigorous testing underpin our approach to pursuing higher expected returns. A DYNAMIC INVESTMENT PROCESS Our goal is to add value over benchmarks and peers through an integrated and robust process. OUR TRACK RECORD We have a long history managing time-tested investment strategies for clients. “Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., and Dimensional Japan Ltd. Past performance is no guarantee of future results. Strategies may not be successful. 3 SC: GC03 Adjust Effect Date and bullet point AUM when Updated About the Firm Dimensional is a global investment firm that has been serving investors for more than 30 years • Dimensional offers investment Investment Personnel solutions across asset classes, Client Service Founded in 1981 including global equities, fixed income, and REITs. • Real Estate AUM – 14.4B Amsterdam • Global Real Estate AUM – 8.6B Vancouver Berlin Toronto London Santa Charlotte Tokyo Monica Austin Singapore US Developed Equities ex US 34.2% Equities $415B in global AUM 18.6% Melbourne REITs & Emerging Sydney Commodities Markets 3.9% 14.1% Fixed More than 1,000 employees globally Global Income Balanced 21.4% 1.8% Global Equity 6.1% Dimensional Fund Advisors LP founded in 1981. Global AUM and number of employees as of June 30, 2016. Locations with offices operated by Dimensional. “Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., and Dimensional Japan Ltd. 4 SC: PC11 Don’t forget to change the effective date Leading Financial Economists and Researchers Academics on Dimensional Fund Advisors LP’s Board Leaders of Dimensional’s3 Eugene Fama1, PhD, Nobel laureate University of Chicago Internal Research Staff Kenneth French1, PhD Dartmouth College Eduardo Repetto, PhD, Director, Co-Chief Executive Officer, and Co-Chief Investment Officer Academics Who Serve as Independent Directors on Dimensional’s Gerard O’Reilly, PhD, Co-Chief Investment 2 US Mutual Fund Board Officer and Head of Research George Constantinides, PhD University of Chicago Stanley Black, PhD, Vice President John Gould, PhD University of Chicago Wes Crill, PhD, Vice President Edward Lazear, PhD Stanford University James Davis, PhD, Vice President Roger Ibbotson, PhD Yale University Massi De Santis, PhD, Vice President Myron Scholes, PhD, Nobel laureate Stanford University Marlena Lee, PhD, Vice President Abbie Smith, PhD University of Chicago Savina Rizova, PhD, Vice President Dave Twardowski, PhD, Vice President Academics Providing Ongoing Consulting Services to Dimensional Robert Merton1, PhD, Nobel laureate Massachusetts Institute of Technology Robert Novy-Marx, PhD University of Rochester Sunil Wahal, PhD Arizona State University As of May 16, 2016. 1. Provide consulting services to Dimensional Fund Advisors LP. 2. “Dimensional’s US Mutual Fund Board” refers to The DFA Investment Trust Company, DFA Investment Dimensions Group Inc., Dimensional Investment Group Inc. and Dimensional Emerging Markets Value Fund Inc. 3. "Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., and Dimensional Japan Ltd. 5 #52793-0516 SC: PC04 Experienced Teams Help Ensure Consistency High degree of practitioners’ knowledge and experience across market cycles Investment Portfolio Committee1 Management Trading Average 23 Years of Industry Experience Average 13 Years of Industry Experience Average 13 Years of Industry Experience David Booth, Chairman and Austin London Austin Co-Chief Executive Officer Jed Fogdall, Co-Head of Arthur Barlow, Chairman, Senior Traders: David LaRusso, Christian Gunther, Eduardo Repetto, Director, Portfolio Management Managing Director, and Christopher Rink, Scott Van Pelt Senior Portfolio Manager Co-Chief Executive Officer, and Senior Portfolio Managers: Traders: Erhan Oktay, Robert Richardson, Co-Chief Investment Officer Arun Keswani, Joseph Kolerich, Senior Portfolio Managers: Elizabeth Van Pelt Joseph Chi, Investment Committee Mary Phillips, Joel Schneider, Akbar Ali, Nathan Lacaze Lukas Smart Chairman and Co-Head of Portfolio Managers: Charlotte Portfolio Management Portfolio Managers: Paul Foley, Alexander Fridman, Polly Weiss, Senior Trader Robert Deere, Investment Director William Collins-Dean, Emily Cornell, Didier Haenecour, Adam Ward, and Senior Portfolio Manager Gavin Crabb, Damian Dormer, Jim Whittington, Joy Yang Santa Monica Joseph Hohn, Alan Hutchison, Henry Gray, Head of Global Equity Trading Jed Fogdall, Co-Head of Pamela Noble, Althea Trevor Sydney Ryan Wiley, Head of Americas Trading Portfolio Management Bhanu Singh, Head of Asia Pacific Le Tran, Senior Trader Henry Gray, Head of Global Charlotte Portfolio Management and Equity Trading Portfolio Managers: Senior Portfolio Manager Claudette Higdon, Trader David Kershner, Travis Meldau Joseph Kolerich, Robert Ness, Senior Portfolio Manager London Senior Portfolio Manager Santa Monica John Romiza, Head of International Trading Gerard O’Reilly, Co-Chief Investment Officer Joseph Chi, Co-Head of Portfolio Managers: Mark Butterworth, Senior Trader and Head of Research Portfolio Management Marcus Axthelm, Murray Cockerell, Stephen Garth, Traders: William Letheren, Frances Ritter, David Plecha, Global Head of Robert Deere, Investment Director Slava Platkov, David Quinn, James Simpson, Archit Soni Fixed Income and Senior Portfolio Manager Gillian Wilson, Craig Wright Sydney Karen Umland, Head of Investment David Plecha, Global Head Strategies Group and Senior of Fixed Income Singapore Jason Lapping, Head of Asia Pacific Trading Portfolio Manager Portfolio Managers: Senior Traders: Richard Mar, Sam Willis Senior Portfolio Managers: Daniel Ong, Allen Pu, Grady Smith, Jason Ha, Stephen Quance David Vrolyk, Trader Karen Umland Tokyo Portfolio Managers: Singapore Kotaro Hama, Portfolio Manager Mitch Firestein, John Hertzer, Jonathan Smith, Trader John Law, David Shao, Brian Walsh Tokyo Hayato Yonemori, Trader As of July 13, 2016. 1. Dimensional Fund Advisors LP Investment Committee. Locations with offices operated by Dimensional. "Dimensional" refers to the Dimensional entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., and Dimensional Japan Ltd. 6 #53690-0716 SC: PC05 Dimensional Fund Advisors and Affiliates Global Organizational Leadership