9. Presentation by Pension Consulting Alliance, Inc. - Third Quarter Hedge Fund-Af-Funds Performance As of September 30, 2010

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9. Presentation by Pension Consulting Alliance, Inc. - Third Quarter Hedge Fund-af-Funds Performance as of September 30, 2010

Water and Power Employees’ Retirement Plan (WPERP) Hedge Fund of Funds Investment Portfolio

Quarterly Report Executive Summary

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Pension Consulting Alliance, Inc.

Nothing herein is intended to serve as investment advice, a recommendation of any particular investment or type of investment, a suggestion of the merits of purchasing or selling securities, or an invitation or inducement to engage in investment activity.

Pension Consulting Alliance, Inc. September 2010

Quarterly Report Q3-10

HEDGE FUND OF FUNDS PORTFOLIO SUMMARY

As of September 30, 2010, WPERP’s Retirement Plan Hedge Fund of Funds Portfolio had an aggregate value of $71.2 million, while the WPERP Health Plan had an aggregate value of $15.2 million.

Recent Investment Performance Trends

During the most recent quarter, the WPERP Hedge Fund of Funds Portfolio outperformed its policy benchmark by 1.6%, net of fees. Over the latest 1-year period, the portfolio outperformed its benchmark by 3.0%, net of fees. The Portfolio trailed its policy benchmark over the latest 3-year time period. Underperformance over longer time periods can be attributed to severe market corrections in the second half of 2008. However, due to a strong 2009-2010, longer-term performance has improved significantly.

Since inception, portfolio performance has been positive, resulting in no principal loss.

The Total Portfolio surpassed the Median Fund over all time periods. The WPERP portfolio added significant value over the Median Fund since inception, outperforming 3.3%, net of fees.

Recent Investment Performance* Hedge Fund of Funds Performance vs. Policy Benchmark

Month Quarter YTD 1 Year 3 Year Since Inc.**** Total Portfolio 1.5 2.4 3.5 6.2 0.5 2.1 Policy Benchmark*** 0.3 0.8 2.4 3.2 4.0 4.7 Excess Return 1.2 1.6 1.1 3.0 -3.5 -2.6

Performance vs. Median Fund** Month Quarter YTD 1 Year 3 Year Since Inc.**** Total Portfolio 1.5 2.4 3.5 6.2 0.5 2.1 Median Fund** 1.4 2.2 2.4 3.5 -3.0 -1.2 Excess Return 0.1 0.2 1.1 2.7 3.5 3.3 *Net of Fees **HFRI Conservative Index ***Benchmark is Tbills + 3% ****Inception is 2/2007

Quarterly Report Q3-10

WPERP Hedge Fund of Funds Risk/Return Analysis Period ending September 30, 2010

Since Inception Annualized Risk/Return 10.0%

8.0% Barclays Aggregate

6.0% Tbills + 3 4.0% WPERP Hedge FoF Aggregate 2.0% Tbills

HFRI Diversified 0.0% Annualized Return -2.0% HFRI Conservative -4.0% S&P 500 -6.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Standard Deviation

Quarterly Report Q3-10

LADWP Hedge Fund of Funds Performance Charts LADWP Hedge Fund Total Period ending September 30, 2010

Growth of $100 Monthly Returns versus Tbills +3% LADWP Hedge Total S&P 500 Index Net of Fees Tbills + 3% 120 3 110 LADWP Hedge Total 2 1 Excess 100 0

90 -1 -2 80 -3

-4 70 Growth of $100 Excess Return, % Return, Excess -5 60 -6

-7 50 -8 Feb-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 40 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10

1.5 12-Month Rolling Beta 1

0.5

0 S&P 500

BC Aggregate

-0.5 MSCI ACWI ex US

ML Global Bond -1

-1.5

-2 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 4

Quarterly Report Q3-10

Actual Asset Allocation Comparison* – Hedge Fund of Funds Portfolio, September 30, 2010

LADWP Hedge Fund of Funds Total

0.0% 1.7%

19.6% Relative Value

Event Driven Opportunistic 50.7% Other 28.0% Cash

Aetos PAAMCO

0.0% 0.0% 0.0% 3.5%

16.0% Relative Value 23.2% Relative Value Event Driven Event Driven 45.0% Opportunistic Opportunistic

Other 56.4% 16.9% Other 39.0% Cash Cash

*Please refer to Glossary Section for a list of Strategy Definitions. 5

Quarterly Report Q3-10

LADWP Hedge Fund of Funds Performance Charts Aetos Period ending September 30, 2010

Aetos LADWP Monthly Returns versus Tbills +3% Growth of $100 S&P 500 Index Tbills + 3% 120 Net of Fees

110 3 Aetos LADWP 2 100 1 Excess

90 0

-1 80 -2 70 Growth of $100 -3

Excess Return, % Return, Excess -4 60 -5

50 -6

-7 40 Feb-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10

1 12-Month Rolling Beta

0.5

0 S&P 500

BC Aggregate

MSCI ACWI ex US -0.5 ML Global Bond

-1

-1.5 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 6

Quarterly Report Q3-10

Manager Allocation and Turnover Period ending September 30, 2010 Aetos

Fund % Status Fund % Status Hedged Equity-Market Neutral Convertible Arbitrage Strategy Allocation Additions Deletions Bay Pond Partners, LP CNH Convertible Arbirtrage Hedged Equity 2 1 Brookside Capital Ishin Fund LLC Merger Arbitrage 0 0 Cadian Fund, LP Subtotal 6.00% Fixed Income Arbitrage 0 0 Conatus Capital Partners, LP Directional 0 0 CamCap Energy Relative Value Convertible Arbitrage 0 0 Highside Capital Partners, LP Term- 3Q2010 GMO Reversion to Mean Fund Relative Value 1 0 Joho Partners, LP AQR RT Fund New 1Q2010* Short Biased 1 1 Marshall Wace New 1Q2010* Subtotal 5.00% Distres sed 1 0 Millgate Partners II, LP YTD Turnover 52 North River Partners, LP Short-Biased Credit/Equity Tiger Consumer New 1Q2010* Icarus Qualified Partners, LP Term- 3Q2010 Viking Global Equities LP Ursus Partners New -3Q2010* Subtotal 38.00% Subtotal 2.00%

Merger-Event Driven Arbitrage Distressed Davidson Kempner Partners, LP AG Mortgage Value Farallon Capital Offshore Investors, Inc. Anchorage Capital Partners, LP Oceanw ood Global Opportunities Fund, LP Aurelius Capital Partners, LP Subtotal 19.00% Centerbridge Credit New 2Q2010* Davidson Kemper Fixed Income Arbitrage King Street Capital, LP Bracebridge FFIP, LP Silver Point Capital Fund, LP Parsec Trading Corporation Watershed Capital Partners, LP Subtotal 10.00% Subtotal 20.00%

*Represents a new manager position 7

Quarterly Report Q3-10

Latest Quarter During the third quarter for the LADWP Portfolio, Aetos hired one new manager, Ursus Partners and terminated two managers, Highside and Icarus Qualified Partners.

Additions

. Ursus Partners, LP (10/1/10) - Ursus Partners is a short-only equity fund run by Jim Chanos of Kynikos Associates. The Fund employs extensive fundamental analyses of both industries and companies and, in general, will be short companies where there exists an identifiable catalyst that will lead to a downward revaluation of the stock. Aetos made an investment in the Fund given the manager’s extensive experience and 25-year track record of managing short-only portfolios. This experience has provided the firm’s senior investment team with exposure to a wide range of different market environments and has led them to develop a thoughtful and robust approach to portfolio risk management. Additionally, an investment in the Fund improves the risk-adjusted returns of the overall portfolio as it should dampen the portfolio’s volatility while maintaining or potentially adding to overall portfolio returns over a full market cycle.

Terminations

. Highside Partners, LP (8/31/10) - Highside Capital Partners is a diversified long/short equity fund that employs a value-based, fundamental bottom-up research process. Aetos terminated this investment based on their concerns about their portfolio construction.

. Icarus Qualified Partners, LP (8/15/10) – Icarus Qualified Partners is a dedicated short equity manager whose bottom-up approach is predicated on the thesis that adverse changes in a company’s operating statement are usually preceded by balance sheet deterioration. Icarus announced that they were shutting down the fund at the end of 2010. Aetos decided to terminate this investment effective at September month-end in anticipation of allocating this money to another dedicated short equity manager.

Quarterly Report Q3-10

LADWP Hedge Fund of Funds Performance Charts PAAMCO Period ending September 30, 2010

PAAMCO--LADWP Growth of $100 S&P 500 Index Monthly Returns versus Tbills +3% Tbills + 3% 120 Net of Fees

110 6 PAAMCO--LADWP 100 4 Excess 90 2

80 0 -2 70 Growth of $100 -4 60 % Return, Excess -6 50 -8 40 -10 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Feb-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10

2 12-Month Rolling Beta

1.5

0.5

S&P 500 0 BC Aggregate

MSCI ACWI ex US -0.5 ML Global Bond

-1

-1.5

-2 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 9

Quarterly Report Q3-10

Manager Allocation and Turnover Period ending September 30, 2010 PAAMCO*

Convertible Bond Hedging Event-Driven Equity Equity Market Neutral LV103413 1.58% LV105106 0.53% New - March** LV104578 0.92% LV103845 - Term - April LV102934 0.15% LV103688 1.07% LV101299 1.11% LV104937 1.60% LV100707 - Term - April LV100150 0.27% LV105037 1.01% LV103918 1.00% LV100061 0.27% LV105108 1.95% New - March** LV104458 - Term - Aug LV104980 1.38% New - May LV104906 1.45% LV105249 0.78% New - Sept LV102015 1.35% Subtotal 6.71% Subtotal 3.76% LV100073 0.03% LV103072 1.19% Fixed Income Relative Value Cash LV102013 2.30% LV104921 0.90% Subtotal 3.50% Subtotal 9.50% LV104920 0.91% LV104535 3.66% Strategy Allocation Additions Deletions Distressed Debt LV101263 4.38% Conv. Bond Hedging 1 1 LV105008 1.65% Subtotal 9.85% Fixed Income Rel Value 0 0 LV105181 0.34% New - August Distressed Debt 1 0 LV102233 0.31% Long/Short Equity Long/Short Credit 3 2 LV103162 0.80% LV100187 1.86% Event-Driven Equity 2 0 LV104515 2.80% LV102209 1.23% Long Short Equity 2 1 LV103920 3.02% LV103917 0.95% Equity Market Neutral 1 2 LV104939 1.30% LV101125 0.99% Total Turnover 10 6 Subtotal 10.23% LV103521 1.80% LV103435 2.04% Long/Short Credit LV103436 2.58% LV105212 1.68% New - July LV103850 1.34% LV104721 2.34% LV104266 - Term - April LV104403 - Transfer LV104898 1.41% LV103297 1.36% LV104876 1.87% LV100047 3.09% LV104950 1.91% LV105163 1.80% Transfer LV104951 1.87% LV100119 2.81% LV104976 1.71% LV104305 1.48% LV105010 1.25% LV100523 - Terminated - Jan LV105011 1.32% LV101805 1.27% LV105064 0.84% New - March LV104566 0.84% New - April LV105159 0.54% New - April LV104769 1.38% LV104317 1.33% LV103516 4.54% LV103919 1.63% LV102012 3.69% Subtotal 28.47% LV104135 1.66% Subtotal 27.94% *Manager Names masked due to Non-disclosure agreement 10 **Represents a new manager position Quarterly Report Q3-10

Latest Quarter During the third quarter of 2010, PAAMCO made three changes to managers in the LADWP portfolio. One manager was terminated and two new managers were hired across the different segments of the LADWP portfolio.

Additions

. Equity Market Neutral – Manager applies quantitative strategies within an equity market neutral framework to emerging markets

. Distressed Debt – Thematic, value-based approach manager that invests in complex situations across the capital structure

Terminations

. Equity Market Neutral – PAAMCO terminated the manager over concerns with the fund’s organization

Quarterly Report Q3-10

Hedge Fund and Hedge Fund of Funds Industry Overview

In the first six months of 2010, the uncertainty of the financial and economic markets had severely impacted markets on a global basis. This has resulted in an increase in volatility across markets and an uncertainty of economic stability. Public markets experienced dramatic declines in both May and June 2010 with a subsequent rebound in July.

The long-term impact of these events on the hedge fund markets continues to be uncertain as regulatory and transparency concerns remain. Among others, a decrease in the ability of hedge fund managers to use leverage and credit to conduct trades and cover positions with brokers has decreased many investment managers’ ability to add value. However, recent events have given way to an increasing number of opportunities for managers in the marketplace.

CAPITAL ALLOCATED TO HEDGE FUNDS (as of 6/30/2010)

2000

1800

1600

1400

1200

1000

800 Billions $ 600

400

200

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 (YTD)

Source: HFR

Quarterly Report Q3-10

The strong performance in 2009 and the third quarter of 2010 more than compensated for investor redemptions, increasing overall global hedge fund assets to $1.65 trillion, which was higher than in Q4 2009. All of the major hedge fund styles added value in the third quarter of 2010 as a reduction in economic uncertainty drove up investor confidence and increased volatility.

BREAKOUT OF HEDGE FUND INDUSTRY BREAKOUT OF HEDGE FUND INDUSTRY

by Major Strategy Type By Assets Performance by Sector (as of 9/30/2010) (as of 9/30/2010)

Quarter 1 Year 3 Years 5 Year 10 Years

Opportunistic HFN Event Driven 4.7 11.6 3.6 6.4 8.1 49% HFN Macro 4.2 6.4 5.6 7.6 9.2

HFN Relative Value Aggregate 3.9 8.8 3.4 6.1 6.9

Event Driven HFN Equity Hedge Aggregate 5.4 6.6 0.3 5.3 7.3 26%

Relative Value 25%

Source: HFR

Quarterly Report Q3-10

Glossary Alpha The premium an investment earns above a set standard. This is usually measured in terms of a common index (i.e., how the stock performs independent of the market). An Alpha is usually generated by regressing a security’s excess return on the S&P 500 excess return.

Annualized Performance The annual rate of return that when compounded t times generates the same t-period holding return as actually occurred from period 1 to period t.

Beta The measure of an asset’s risk in relation to the Market (for example, the S&P 500) or to an alternative benchmark or factors. Roughly speaking, a security with a Beta of 1.5, will have moved, on average, 1.5 times the market return.

Bottom-up A management style that de-emphasizes the significance of economic and market cycles, focusing instead on the analysis of individual stocks.

Convertible Arbitrage Hedge Funds Convertible arbitrage is the trading of related securities whose future relationship can be reasonable predicted. Convertible securities are usually either convertible bonds or convertible preferred shares, which are most often exchangeable into the common stock of the company issuing the convertible security. The managers in this category attempt to buy undervalued instruments that are convertible into equity and then hedge out the market risks. Fair value is based on the optionality in the convertible bond and the manager’s assumption of the input variables, namely the future volatility of the stock.

Correlation Correlation expresses the degree to which fluctuations in one variable are related to fluctuations in another variable. It ranges from – 1 to +1.

Drawdown Drawdown measures a period of negative performance. It is generally expressed as a percentage of the net asset value.

Quarterly Report Q3-10

Distressed Securities Hedge Funds Distressed securities funds invest in the debt or equity of companies experiencing financial or operational difficulties or trade claims of companies that are in financial distress, typically in bankruptcy. These securities generally trade at substantial discounts to par value. Hedge fund managers can invest in a range of instruments from secured debt to common stock. The strategy exploits the fact that many investors are unable to hold below investment grade securities.

Emerging Markets Hedge Funds Emerging market hedge funds focus on equity or fixed income investing in emerging markets as opposed to developed markets. This style is usually more volatile not only because emerging markets are more volatile than developed markets, but because most emerging markets allow for only limited short selling and do not offer a viable futures contract to control risk. The lack of opportunities to control risk suggests that hedge funds in emerging markets have a strong long bias.

Equity Market-Neutral Hedge Funds Equity market-neutral is designed to produce consistent returns with very low volatility and correlation in a variety of market environments. The investment strategy is designed to exploit equity market inefficiencies and usually involves being simultaneously long and short matched equity portfolios of the same size within a country. Market neutral portfolios are designed to be either beta or currency-neutral or both. Equity market-neutral is best defined as either statistical arbitrage or equity long/short with zero exposure to the market.

Event Driven Hedge Funds This investment strategy class focuses on identifying and analyzing securities that can benefit from the occurrence of extraordinary transactions. Event-driven strategies concentrate on companies that are, or may be, subject to restructuring, takeovers, mergers, liquidations, bankruptcies, or other special situations. The securities prices of the companies involved in these events are typically influenced more by the dynamics of the particular event than by the general appreciation or depreciation of the debt and equity markets. For example, the result and timing of factors such as legal decisions, negotiating dynamics, collateralization requirements, or indexing issues play a key element in the success of any event-driven strategy.

Fixed Income Arbitrage Hedge Funds Fixed income arbitrage managers seek to exploit pricing anomalies within and across global fixed income markets and their derivatives, using leverage to enhance returns. In most cases, fixed income arbitrageurs take offsetting long and short positions in similar fixed income securities that are mathematically, fundamentally or historically interrelated. The relationship can be temporarily distorted by market events, investor preferences, exogenous shocks to supply or demand, or structural features of the fixed income market.

Quarterly Report Q3-10

Global Macro Hedge Funds Macro hedge funds pursue a base strategy such as equity long/short or futures trend following to which large scale and highly leveraged directional bets in other markets are added a few times each year. They move from opportunity to opportunity, from trend to trend, from strategy to strategy.

Hedge Fund A fund (generally not regulated) that typically engages in non-conventional investment techniques and strategies, using derivatives, short positions and borrowing, thereby achieving a leveraged effect.

Long/Short Equity Hedge Funds Long/short strategies combine both long as well as short equity positions. The short positions have three purposes, which can vary over time or by manager. First, the short positions are intended to generate alpha. This is one of the main differences when compared with traditional long-only managers. Stock selection skill can result in doubling the alpha. A long/short equity manager can add value by buying winners as well as selling losers. Second, the short positions can serve the purpose of hedging market risk. Third, the manager earns interest on the short as he collects the short rebate.

Merger Arbitrage Hedge Funds Merger arbitrage (also known as risk arbitrage) specialists invest simultaneously in long and short positions in both companies involved in a merger or acquisition. In stock swap mergers, risk arbitrageurs are typically long the stock of the company being acquired and short the stock of the acquiring company. In the case of a cash tender offer, the risk arbitrageur is seeking to capture the difference between the tender price and the price at which the target company’s stock is trading.

Relative Value Strategy Hedge Funds This class of investment strategy seeks to profit by capitalizing on the mis-pricings of related securities or financial instruments. Generally, relative-value and market neutral strategies avoid taking a directional bias with regards to the price movement of a specific stock or market. This makes this style most appealing for investors who are looking for high and stable returns accompanied by low correlation to the equity market.

R-Squared Square of the correlation coefficient. The proportion of the variability in one series that can be explained by the variability of one or more other series a regression model. A measure of the quality of fit. 100% R-square means perfect predictability.

Quarterly Report Q3-10

Sharpe Ratio This ratio is a risk-adjusted measure of a fund’s performance. It is calculated as follows [(annualized rate of return)-(annualized risk-free interest rate)] / annualized standard deviation. For example, a fund with a Sharpe Ratio greater than 1.0 is achieving more than one unit of excess return per unit of risk undertaken.

Short Selling Hedge Funds The short selling discipline has an equity as well as fixed income component. Short sellers seek to profit from a decline in the value of stocks. In addition, the short seller earns interest on the cash proceeds from the short sale of stock.

Standard Deviation The square root of the variance. A measure of dispersion of a set of data from its mean.

Top-down Investment style that begins with an assessment of the overall economic environment and makes a general asset allocation decision regarding various sectors of the financial markets and various industries.

Quarterly Report Q3-10

Hedge Funds Characteristics and Terms

Strategies Definition Relative Value Convertible Arbitrage Invests in the convertible securities of a company. A typical investment is to be long the convertible bond and short the common stock of the same company. Positions are designed to generate profits from the fixed income security as well as the short sale of the stock, while protecting the principal from market moves. Fixed Income Arbitrage Fixed income arbitrage managers seek to exploit pricing anomalies within and across global fixed income markets and their derivatives, using leverage to enhance returns. In most cases, fixed income arbitrageurs take offsetting long and short positions in similar fixed income securities that are mathematically, fundamentally or historically interrelated. The relationship can be temporarily distorted by market events, investor preferences, exogenous shocks to supply or demand, or structural features of the fixed income market. Equity Market Neutral Equity market-neutral is designed to produce consistent returns with very low volatility and correlation in a variety of market environments. The investment strategy is designed to exploit equity market inefficiencies and usually involves being simultaneously long and short matched equity portfolios of the same size within a country. Market neutral portfolios are designed to be either beta or currency-neutral or both. Equity market-neutral is best defined as either statistical arbitrage or equity long/short with zero exposure to the market. Event Driven Risk Arbitrage Risk arbitrage (also known as merger arbitrage) specialists invest simultaneously in long and short positions in both companies involved in a merger or acquisition. In stock swap mergers, risk arbitrageurs are typically long the stock of the company being acquired and short the stock of the acquiring company. In the case of a cash tender offer, the risk arbitrageur is seeking to capture the difference between the tender price and the price at which the target company’s stock is trading. Distressed Securities Distressed securities funds invest in the debt or equity of companies experiencing financial or operational difficulties or trade claims of companies that are in financial distress, typically in bankruptcy. These securities generally trade at substantial discounts to par value. Hedge fund managers can invest in a range of instruments from secured debt to common stock. The strategy exploits the fact that many investors are unable to hold below investment grade securities. Opportunistic Macro Macro hedge funds pursue a base strategy such as equity long/short or futures trend following to which large scale and highly leveraged directional bets in other markets are added a few times each year. They move from opportunity to opportunity, from trend to trend, from strategy to strategy. Short Sellers The short selling discipline has an equity as well as fixed income component. Short sellers seek to profit from a decline in the value of stocks. In addition, the short seller earns interest on the cash proceeds from the short sale of stock. Long Region, Industry, Traditional equity fund structured like a hedge fund; ie, uses leverage and permits managers to collect an incentive fee. Focus or Style of the fund could be a specific geographic region (i.e., Japan) , industry (i.e., technology) or style (i.e., growth) Emerging Markets Emerging market hedge funds focus on equity or fixed income investing in emerging markets as opposed to developed markets. This style is usually more volatile not only because emerging markets are more volatile than developed markets, but because most emerging markets allow for only limited short selling and do not offer a viable futures contract to control risk. The lack of opportunities to control risk suggests that hedge funds in emerging markets have a strong long bias. Long/Short Equity Long/short strategies combine both long as well as short equity positions. The short positions have three purposes, which can vary over time or by manager. First, the short positions are intended to generate alpha. This is one of the main differences when compared with traditional long-only managers. Stock selection skill can result in doubling the alpha. A long/short equity manager can add value by buying winners as well as selling losers. Second, the short positions can serve the purpose of hedging market risk. Third, the manager earns interest on the short as he collects the short rebate.

Quarterly Report Q3-10

Supplemental Performance/Risk Statistics

1 year ending 9/30/2010 Net of Fees, versus the S&P 500 MPT Statis tic s Annualized Return, % Annualized StdDev, % Sharpe Treynor Sortino Information Batting Alpha, % Beta Beta* Beta** Beta*** R-Squared, % Ratio Ratio Ratio Ratio Average**** Total Excess**** Total Excess**** LADWP Hedge Total 4.4 0.1 -0.4 0.1 0.1 69.9 1.9 0.4 26.1 2.0 0.750 6.2 3.0 3.2 3.2 Aetos LADWP 5.2 0.2 -0.4 0.2 0.1 71.8 1.9 0.4 28.5 2.0 0.830 7.4 4.2 3.7 3.7 PAAMCO--LADWP 3.6 0.1 -0.5 0.1 0.0 61.6 1.7 0.4 19.7 1.8 0.750 5.1 1.9 2.8 2.8 BC Aggregate Bond 8.4 -0.1 1.0 -0.1 0.3 12.9 2.5 -1.4 NA 2.7 0.750 8.2 5.0 3.1 3.1 Tbills + 3 3.0 0.0 0.0 0.0 0.0 3.1 NA NA 0.0 NA 0.000 3.2 0.0 0.0 0.0 HFRI FOF: Diversified Index 1.2 0.2 -0.5 0.2 0.1 75.0 0.8 0.2 2.8 0.8 0.500 3.2 0.1 3.8 3.8 HFRI FOF: Conserv. Index 2.5 0.1 -0.3 0.1 0.1 64.8 1.2 0.3 7.1 1.3 0.580 4.3 1.1 3.4 3.4 Merrill Lynch 3-month T-Bill 0.0 0.0 0.0 0.0 0.0 0.0 NA NA 0.0 6.2 0.000 0.1 -3.0 0.0 0.0 S&P 500 Index 0.0 1.0 -2.2 0.9 0.8 100.0 0.6 0.1 1.4 0.5 0.000 10.2 7.0 19.1 19.1 *BC Aggregate **M SCI A CWI ex US ***M L Global Bond Index ****Tbills + 3% Since inception ending 9/30/2010 Net of Fees, versus the S&P 500

MPT Statistics Annualized Return, % Annualized StdDev, % Sharpe Treynor Sortino Information Batting Alpha, % Beta Beta* Beta** Beta*** R-Squared, % Ratio Ratio Ratio Ratio Average**** Total Excess**** Total Excess**** LADWP Hedge Total 1.3 0.2 0.3 0.2 0.2 38.1 0.1 0.0 0.6 0.3 0.610 2.1 -2.6 7.1 7.1 Aetos LADWP 0.7 0.2 0.2 0.2 0.2 42.4 0.0 0.0 0.5 0.3 0.570 1.6 -3.1 6.0 6.0 PAAMCO--LADWP 1.9 0.2 0.3 0.2 0.3 31.5 0.1 0.0 0.5 0.3 0.660 2.5 -2.2 8.7 8.7 BC Aggregate Bond 5.3 0.1 1.0 0.1 0.5 5.4 1.3 1.2 18.9 1.8 0.590 7.1 2.4 3.9 4.0 Tbills + 3 2.8 0.0 0.0 0.0 0.0 2.7 14.2 18.1 0.0 9.1 0.000 4.7 0.0 0.1 0.0 HFRI FOF: Diversified Index -1.5 0.2 0.2 0.2 0.2 42.2 -0.3 -0.1 -0.2 -0.1 0.500 -0.8 -5.5 7.0 7.0 HFRI FOF: Conserv. Index -1.9 0.2 0.1 0.2 0.2 39.4 -0.4 -0.2 -0.2 -0.2 0.520 -1.0 -5.7 6.3 6.3 Merrill Lynch 3-month T-Bill 0.0 0.0 0.0 0.0 0.0 0.0 NA NA NA 3.0 0.000 1.9 -2.8 0.6 0.2 S&P 500 Index 0.0 1.0 1.2 0.7 1.2 100.0 -0.2 -0.1 -0.3 -0.2 0.000 -4.0 -8.7 20.2 20.2 *BC Aggregate **M SCI A CWI ex US ***M L Global Bond Index

****Tbills + 3%