Annual Presentation by Fred Alger Management, Inc. – Large-Cap Growth Manager (April 13, 2016, Regular Retirement Board Meeting)

Item No. 14: Annual Presentation by Fred Alger Management, Inc. – Large-Cap Growth Manager (April 13, 2016, Regular Retirement Board Meeting)

INVESTMENT MANAGER SUMMARY

MANAGEMENT Firm Name Fred Alger & Company, Inc. Manager Tenure with Fund 12 Years Investment Strategy/Vehicle Large-Cap Growth Equity Contract Expiration 07/31/2018

ASSETS Total Firm AUM (12/31/2015) $22.1 Billion Total Firm Assets in Strategy (12/31/2015) $863.7 Million Total Assets Managed for WPERP (02/29/16) RP - $407.2 Million HP - $68.4 Million

PERFORMANCE As of 02/29/2016 1 Year 3 Year 5 Year Inception Fred Alger LCG (gross) -12.15% 10.67% 7.79% 7.59% Fred Alger LCG (est. net) -12.40% 10.36% 7.48% 7.23% Russell 1000 Growth Index -5.05% 12.54% 10.95% 7.31% Difference (net of fees) -7.35% -2.18% -3.47% -0.08%

FEES Schedule 28.5 bps on all assets

WATCH STATUS Recommended for short-term performance watch status April 13, 2016.

Los Angeles Department of Water & Power

April 13, 2016 Los Angeles Department of Water & Power Table of Contents

1. Company Overview 2. Investment Process and Discipline 3. Market Overview 4. Performance Review 5. Portfolio Review and Characteristics 6. Fee Schedule 7. Additional Information and Disclosure 8. Appendix 9. Glossary of Investment Terms

For Institutional Presentation Purposes Only. Not for Distribution to the Public. Presenters’ Biographies

Daniel C. Chung, CFA® Chief Executive Officer, Chief Investment Officer, Portfolio Manager Daniel C. Chung is Chief Executive Officer, Chief Investment Officer and Portfolio Manager of several Alger strategies. Dan joined Alger in 1994 and has 22 years of investment experience. He was named Chief Investment Officer in September 2001, President in 2003, and CEO in 2006. Dan graduated from Stanford University with B.A. and B.S. degrees, with Distinction and Phi Beta Kappa, in 1984. He earned his J.D. magna cum laude from Harvard Law School in 1987, where he was an editor of the Harvard Law Review. After law school, he served as law clerk for the Honorable Justice Anthony M. Kennedy, United States Supreme Court. He joined Simpson Thacher & Bartlett LLP in New York City in 1989 and earned an L.L.M. from New York University. Dan is a CFA charterholder and a member of the CFA Institute. Throughout his tenure at Alger, Dan has made numerous TV appearances on Bloomberg, CNBC, and Fox Business. Dan has also been featured and quoted frequently in Barron’s, Citywire, Forbes, Investment News, Pensions & Investments, USA Today, and the Wall Street Journal.

Peter Latara Senior Vice President, Institutional Sales & Service Peter Latara is Senior Vice President in Institutional Sales & Service. He joined Alger in 2004 and has 19 years of experience. Peter develops and manages relationships with both potential and existing institutional clients. He started his career at Alger as Vice President in Institutional Sales, where he was primarily responsible for relationship management as well as leading our initiatives in the middle market. Before joining Alger, he was with Gabelli Asset Management for over eight years and was a major contributor to their institutional business and closed-end fund business. Previously, Peter was with Black, Manafort, Stone & Kelly and at Alliance Capital Management Corp. He earned a B.A. in Economics/Political Science from Emory University and an M.B.A. in Finance from the University of Maryland Robert H. Smith School of Business.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 1.0 Company Overview Fred Alger Management, Inc.

Mandate: • Hired in February 2004 to run a Large Cap Growth Equity mandate

Firm: We believe that the greatest opportunity for superior returns comes from a portfolio comprised of dynamically changing and fast-growing companies

We seek to uncover these opportunities through our:

• Singular focus on growth investing

• Vibrant, fundamental research-intensive culture

• Consistent process, time-tested for over 50 years

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 1.1 Total Assets Under Management

As of 12/31/15

Alger Strategy Institutional/Offshore Intermediary Total Category

• Capital Appreciation • Capital Appreciation Focus Large Cap • Growth & Income $10,449 $8,867 $19,317 • Large Cap Growth • Spectra

• Mid Cap Focus Mid Cap • Mid Cap Growth $339 $733 $1,071 • SMid Cap Growth

• Small Cap Focus $555 $325 $879 Small Cap • Small Cap Growth

• Emerging Markets International • Global Growth $31 $285 $316 • International Growth

• Dynamic Opportunities $64 $120 $184 Alternatives (Long/Short)

• Balanced • Green $75 $272 $347 Specialty • Health Sciences • Other

$11,514 $10,601 $22,115

Numbers may not add up to totals exactly due to rounding.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 1.2 Company Overview Organizational Structure

Ownership Alger Associates, Inc. is 100% owned by members of the Alger family. Alger Associates, Inc. is the owner of 100% of the shares of Fred Alger Management, Inc., which was formed in 1964. In addition, Alger has created various programs that allow key employees to participate in the long-term financial success of the Firm. These programs are The Alger Partners Plan and The Alger Profit Participation Plan. The Alger Partners Plan was approved by the Board on December 31, 2009 and, collectively for all participants, represents over 15% of the value of the Firm. Current members of The Alger Partners Plan include Dan Chung, CFA, CEO, CIO, Portfolio Manager; Ankur Crawford, Ph.D., Senior Analyst, Portfolio Manager; Jill Greenwald, CFA, Portfolio Manager; Patrick Kelly, CFA, Portfolio Manager, Head of Alger Capital Appreciation & Spectra Strategies; Hal Liebes, COO, Chief Legal Officer; and James Tambone, Chief Distribution Officer. The Alger Profit Participation Plan allows key Alger employees to create personal wealth from the growth in Alger by participating in the Firm’s investment and earnings results. Currently, approximately 34% of Alger’s employees participate in the program including all senior investment team members.

Organizational Structure Fred Alger Management, Inc. is led by the following executive officers: • Daniel C. Chung, CFA, Chief Executive Officer and Chief Investment Officer • Hal Liebes, Chief Operating Officer and Chief Legal Officer • James Tambone, Chief Distribution Officer • Robert Kincel, Chief Financial Officer • Patrick Murphy, Chief Compliance Officer • Robert Isacco, Director of Human Resources

1.3 Alger’s Senior Investment Professionals

Daniel C. Chung, CFA CEO, Chief Investment Officer 21 Years of Experience

Jill Greenwald, CFA* Pedro Marcal Kevin D. Collins, CFA EVP, Portfolio Manager SVP, Portfolio Manager SVP, Client Portfolio Manager 29 Years of Experience 26 Years of Experience 23 Years of Experience

Patrick Kelly, CFA Deborah Vélez Medenica, CFA William Rechter, CFA EVP, Portfolio Manager, Head SVP, Portfolio Manager SVP, Client Portfolio Manager of Alger Capital Appreciation 19 Years of Experience 44 Years of Experience and Spectra Strategies 18 Years of Experience

Gregory S. Adams, CFA Amy Y. Zhang, CFA SVP, Portfolio Manager, SVP, Portfolio Manager Director of Quantitative 18 Years of Experience & Risk Management 28 Years of Experience

Ankur Crawford, Ph.D. SVP, Senior Analyst, Portfolio Manager 11 Years of Experience

As of 3/15/16. *On temporary medical leave.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 1.4 Research Is the Foundation of Our Investment Process

A Deep and Experienced Research Team Industry/Sector and Country/Regional Expertise

Average Years Role Total Number Research Team Coverage of Experience

Technology/Telecom   Senior Analyst 7 18 Consumer 

Health Care 

 Analyst 15 15 Industrials 

Energy/Materials/Utilities 

 Associate Analyst 5 9 Financials 

Developed Non-U.S. Markets 

Emerging Markets   Research Associate 6 1 Generalists 

• One team, one process, supporting all portfolios • Broad expertise across the economic spectrum, geography, and market capitalization • Hire passionate, creative, and resilient people • Culture of communication with open-door policy • Diverse academic, financial services, and direct industry fostering continuous collaboration backgrounds • Shared research database and weekly global • Alger Training Program renowned for developing investment team meeting talent in “The Alger Way”

As of 3/15/16

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 1.5 A Well-Balanced Array of Clients

Assets by Channel Representative Clients

Sub-Advisory Corporate Non-U.S. (13%) • ABN AMRO Multi-Manager Funds • Kaiser Permanente • AON Hewitt Group Trust • Navistar, Inc.

Foundation/Endowment Socially Responsible Intermediary (51%)†† • Kern Family Foundation • Congregation of Our Lady of the Cenacle • Purdue Research Foundation • Dominican Convent of Our Lady of the Rosary • Saint Thomas Church • Ursuline Sisters of Tildonk • The Lutheran Foundation • Wisdom Charitable Trust Public Funds Institutional (49%)* • City of Lake Worth Employees’ Retirement System • City of Taylor (MI) Police and Fire Retirement System • City of Wichita Retirement Systems • Dallas/Fort Worth International Airport Board • Greater Orlando Aviation Authority Defined Benefit Pension Plan • Kansas City Public School Retirement System • Los Angeles Department of Water & Power Separate Accounts by Client Type • Oklahoma Firefighters Pension & Retirement Fund • Philadelphia Gas Works Socially Responsible (2%) • Riviera Beach Police Pension Fund • Schuylkill County Employees Retirement Fund Sub-Advisory (32%) Taft-Hartley Public (19%) • Carpenters Pension Trust Fund for Northern California • Iron Workers Mid-South Pension Fund • Laborers' District Council Construction Industry Pension Plan • Maritime Association—ILA Pension & Welfare Funds • Milk Drivers & Dairy Employees Local 264 Pension Fund • New Orleans Employers ILA, AFL-CIO Pension Fund Foundation/Endowment (7%) • Operating Engineers Local No. 77 Pension Trust Fund Corporate (24%) • Plumbers and Steamfitters Local 486 Pension Fund • Teamsters Pension Trust Fund of Philadelphia & Vicinity Taft-Hartley (18%) • Waterfront Employers—ILA Pension Fund

Assets breakdown as of 12/31/15. Representative clients as of 12/31/15. *Institutional includes separate accounts and institutional share classes of Alger mutual funds. ††Intermediary includes Alger mutual funds and Separately Managed Accounts (SMA). Entities listed above represent advisory clients of Fred Alger Management, Inc. or investors in the mutual funds advised by Fred Alger Management, Inc. These clients and investors were selected on the basis of being well known to the public and not on any performance based criteria. Inclusion on the list should not be viewed as an endorsement of Alger’s strategies.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 1.6 Company Overview Key Contacts

Portfolio Management Daniel C. Chung, CFA William Rechter, CFA Chief Executive Officer, Chief Investment Officer, Portfolio Manager Senior Vice President, Client Portfolio Manager [email protected] [email protected]

Kevin Collins, CFA Senior Vice President, Client Portfolio Manager [email protected]

Client Relations Peter Latara Michael Lynam Senior Vice President, Institutional Sales & Service Vice President, Institutional Sales & Service [email protected] [email protected]

Chelsea Charette Assistant Vice President, Institutional Sales & Service [email protected]

Consultant Relations Meredith Genova Nicolaescu Vice President, Institutional Sales & Service [email protected]

Address: 360 Park Avenue South, New York, NY 10010 Phone: (212) 806-8800 For Institutional Presentation Purposes Only. Not for Distribution to the Public. 1.7 Alger’s Investment Philosophy

• We believe companies undergoing Positive Dynamic Change offer the best investment opportunities for our clients

• Our competitive edge is identifying these companies and capitalizing on the change before it is recognized by the market

• We embrace change found in “traditional” growth companies and in companies experiencing a “growth renaissance”

These “traditional” growth companies have growing revenues, growing unit volume, increasing market share, and an expanding business A catalyst drives these companies to experience a “growth renaissance,” resulting in an improving earnings trajectory leading to P/E expansion

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 2.0 Investment Process and Discipline Investment Objective

“On an annual basis, the Manager is expected to outperform the Russell 1000 Growth Index return, net of fees, to be measured over a market cycle of three to five years” – as stated in Los Angeles Department of Water & Power Guidelines

2.1 Alger’s Investment Process

Our investment process has been consistently applied for over 50 years

Analysts identify companies experiencing dynamic change in their sectors and regions to NEW IDEAS generate potential investment ideas

Analysts perform in-depth company analysis to develop a differentiated view supported by ANALYSIS detailed financial models and stress-tested for a range of potential outcomes

Analysts present their ideas to portfolio managers and have their investment thesis and DIALOGUE assumptions challenged

CONSTRUCTION Portfolio managers construct portfolios of the highest conviction ideas while managing risk

Risks are collaboratively managed by analysts, portfolio managers, the Director of Quantitative MONITORING and Risk Management, and compliance

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 2.2 Stock Analysis

Original Research to Build a Differentiated View Stress Test Valuation Based on Key Stock Drivers

BULL, BEAR, AND BASE CASE Public Documents

BULL CASE Suppliers Customers

ANALYST BASE CASE

Competitors Partners Price

BEAR CASE Mgmt Current Interviews Price Time

• Analysts leverage industry/sector and country/regional • Link fundamentals explicitly to valuation and stock-specific expertise to identify potential change beneficiaries risk factors

• Develop a differentiated view of a company’s total market • Assess company fundamentals using detailed, proprietary and ability to execute its business model financial models and a variety of valuation methods

• Quantify insights in detailed income, balance sheet, and • Stress test base case price targets for both upside cash flow models specific to a company’s key drivers surprise and downside risk

• Monitor the investment thesis and stock price after the initial inclusion in the portfolio, potentially buying on weakness or selling on strength

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 2.3 Portfolio Manager and Analyst Dialogue

Alger’s investment teams leverage the deep industry/sector and country/regional knowledge of Alger’s analysts

• Alger’s culture of communication ‒ Open-door policy ‒ Weekly global investment team meetings Portfolio Dialogue Analyst ‒ Shared database for notes on every contact Manager about a company

• Alger’s investment teams typically meet weekly ‒ Review portfolios ‒ Discuss in-progress research ‒ Set future research priorities

• Portfolio Managers makes final decisions on portfolio construction

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 2.4 Portfolio Construction

Portfolio construction seeks to balance reward and risk through in-depth knowledge of companies, broadly diversified holdings, and portfolio characteristics

Buy decisions and position size are based on: – Highest conviction, relative investment opportunity Reward – Portfolio constraints Sell decisions are based on: Buy Risk & – Stock achieving its target price Sell – Company experiencing deteriorating fundamentals – New idea with greater reward/risk potential

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 2.5 Investment Process and Discipline Investment Process

Trading

• Five person in-house desk

• Charles River order management trading system

- All trades placed through system - Automates pre-trade/post trade compliance

• Continual communication between portfolio manager and trading desk

• Independent monitoring of trading

- Monthly Trading Practices Committee review -3rd party (SJ Levinson/Abel Noser) analysis

2.6 Investment Process and Discipline Investment Guidelines and Restrictions

Objective: • On an annual basis, the Manager is expected to outperform the Russell 1000 Growth Index return, net of fees, to be measured over a market cycle of three to five years Guidelines: • It is expected that the portfolio will be fully invested (<5% cash) at all times • No more than 5% of the Portfolio, at the lesser of cost or market value, shall be invested in any one issue, unless that issue represents more than 5% of the Russell 1000 Growth Index. In such cases, the maximum amount allowed is 125% of the benchmark weight. • Equity securities are limited to those issues listed on the New York, American, NASDAQ, or other nationally recognized U.S. Stock Exchange Restrictions: • Foreign securities (except for Benefit Driven Incorporation (BDIs) included in the U.S. Russell 1000 Index) • ADRs • Short sales • Futures • Use of non-approved derivative securities (equity futures and forward contracts) • Purchase of securities on margin • Direct investment in raw commodities

2.7 COMMENTARY

Market Update March 2016

FUNDAMENTALS POINT TO POTENTIAL EQUITY GAINS

Rather than react to the changing whims of investor sentiment, Alger selects stocks based on in-depth fundamental research that seeks to identify companies that are likely to benefit from changes such as emerging technologies, medical advancements, new regulations, corporate restructuring, and mergers and acquisitions. Our robust research also provides us with insights that often result in our firm generating an outlook for a stock or sector that is differentiated from the “street.” In a recent podcast, Alger Chief Executive Officer and Chief Investment Officer Dan Chung discussed Alger’s optimistic outlook for equities. In this Q&A, he elaborates on this outlook and identifies developments that are likely to support stocks in the Daniel Chung, CFA near future. CHIEF EXECUTIVE OFFICER CHIEF INVESTMENT OFFICER Q What factors have driven market performance in the aftermath of the Global Financial Crisis and what factors do you think investors will focus on going forward? A In the past few years, investors’ focus on central banks providing liquidity has been extraordinary. Fundamentals have also played a key part in the recovery of the equity market. We believe fundamentals have been attractive, but we think investors’ focus on liquidity has been misguided with the U.S. Federal Reserve having lost control of interest rates. In December, the Fed raised the fed funds rate, the first increase since June of 2006. This decision followed the central bank’s earlier actions to end quantitative easing. Despite the December increase, Treasury bond interest rates declined early Listen to Dan as he in 2016, which illustrates that market forces and not the Fed are in control. As the Fed discusses Alger’s optimistic continues to normalize rates and becomes less of a driver of investor sentiment, we believe investors will increasingly focus on corporate fundamentals and determine that outlook for equities. stocks are the best option in the investment world. www.alger.com/Dchung

Q Why haven’t more investors embraced equities? A Recent uncertainty resulting from the change in Fed policy has driven volatility in equity markets, which can be unsettling for investors. At the same time, I think investors who have flocked to bonds and cash subscribe to a faulty premise that the drop in oil prices and a decline in earnings among energy companies will cause massive losses among banks that have exposure to commodity producers and companies that provide services to the energy sector. Many investors are viewing those fears from the perspective of having weathered the failure of global financial institutions during the 2008 Financial Crisis. Investors may eventually realize that banks are unlikely to experience a financial contagion, or a repeat of 2008 and 2009. The banking system in the U.S. has been shored up considerably since the crisis and banks are much stronger now than in the years leading up to that event. During those years, banks expanded their balance sheets with excessive exposure to real estate securities right up until the crisis. They had also loosened lending standards for consumers and businesses that were overextended with debt that was held on banks’ balance sheets. When the real estate market finally burst, banks paid a heavy penalty. Banks today have stronger balance sheets, with tangible common equity being the highest it’s been in over 30 years, and

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COMMENTARY 2/4

Investors may lending standards are much tighter. Risks of losses and a dislocation of the bond market, furthermore, have been shifted to a substantial extent to the bond market. eventually realize The real estate recovery, meanwhile, is continuing at what we believe is a sustainable pace, aided by consumers who have reduced their debt service that banks are to rates not seen in 30 years. (See chart “Americans’ Debt Service Level is at a unlikely to experience 30-Year Low.”) I believe that investors will eventually conclude that the bond market is in a bubble. a financial contagion, Even Bill Gross, who is nicknamed “The Bond King,” has expressed concerns over the bond market and has shortened his portfolio duration. Corporate bonds are or a repeat of 2008 14 trading at the equivalent of approximately 19 times earnings and government debt is and 2009. The banking trading at more than 30. The S&P 500 index, in comparison, is trading at a P/E of 15.2 based on forward earnings expectations compared to a median P/E of 16.0 system in the U.S. since 1995. The S&P also has an earnings yield of 6%. Today, the S&P 500 earnings yield is higher than an investment grade bond. That is very rare from a 50-year point has been shored up of view. Clearly, there is, in my view, little reason to believe that U.S. equities and considerably since 12 equities from many other countries, including emerging markets, are overvalued. the crisis and banks entage Q What other characteristics are likely to make equities appealing among rc are much stronger Pe investors? A We maintain that corporate fundamentals are strong. That is especially true with now than in the years 10 what we consider the core of the U.S. economy, which includes technology, consumer discretionary, financials, health care, and industrials. More specifically, S&P 500 leading up to that event. earnings per share ex energy and materials grew 6.3% last year and are expected to grow at a similar rate this year. Growth has occurred despite a currency headwind of several hundred basis points over the past couple of years. A potential investor handoff from bonds to equities may also be driven by investors’ attraction to the 8 potential for corporations to increase their dividends as earnings grow. Most bonds, of course, provide a8483828180 fixed85 86payment87 88 over89 their9190 lifetime.92 93 969594 97 009998 01 02 03 060504 07 0908 10 1211 13 14 Year

Americans’ Debt Service Level is at a 30-Year Low

14 Debt Service as a Percentage of Disposable Personal Income

12 ent rc Pe

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3.1 COMMENTARY 3/4

With those points in mind, we continue to have an optimistic view of equities. In one In one possible possible scenario, equity valuations relative to bond valuations would move closer to historical standards and earnings growth expectations would materialize. If those changes scenario, equity occur, the S&P could generate returns in the mid-teens compounded over two years. valuations relative Q What other tailwinds for equities exist? to bond valuations A Declining oil prices have weighed heavily upon equities, but we think lower energy costs will be a net positive for the economy by cutting expenses for businesses and consumers. would move closer to Energy cost savings, combined with a tight labor market supporting both wage increases historical standards and rising home values, are likely to support increased consumer spending. With new housing starts considerably below historical averages, the residential real estate recovery is and earnings growth likely to continue, in part because many millennials have delayed buying homes, which has created pent-up demand. expectations would The scope and rapid pace of innovation in the U.S. is also a positive for equities, especially materialize. If those when viewed from a historical perspective. As discussed in Alger’s “The Impact of Innovation Deflation,”white paper and podcast, new products are quickly capturing market share, changes occur, the thereby helping corporations to grow their earnings while creating cost savings for consumers and businesses. Kitchen stoves, which were introduced in 1750, took 187 years S&P could generate to reach 50% market penetration and washing machines took approximately 60 years. returns in the mid- Today, innovative products gain traction in the blink of an eye with smartphones and social media reaching the 50% threshold in 16 and 9 years respectively.1 teens compounded over two years. Q What are the possible consequences for investors who sell equities during periods of market volatility? A Investors who have been selling equities during market downturns may be making a very large mistake. The Global Financial Crisis illustrates the likely downside of selling equities during market declines with hopes of avoiding additional loses. Many investors sold at or near the market bottom and then failed to get back in the equity market quickly as stocks recovered. The Global Financial Crisis is a reminder that market corrections can be painful, but they can also be short lived, with the decline of 2008 and 2009 lasting less than nine months.

Q Will the transition of investors focusing on fundamentals instead of central bank liquidity have any impact on active versus passive investing? A We believe market conditions are likely to be favorable for active portfolio management. At Alger, our in-depth research seeks leading companies that are likely to grow earnings by benefiting from large-scale changes, including unprecedented levels of innovation. At the same time, we seek to avoid old-school companies, such as brick and mortar retailers. Broadly speaking, those retailers are quickly losing market share to industry disrupters, including online retailers. Market benchmarks don’t discern between winners and losers of innovations and other trends, so passive investors may miss attractive opportunities that rapidly arise as a result of change and also have exposure to companies with outdated business models and weakening earnings. Since we at Alger seek companies that are capable of growing their earnings, our portfolios tend to be weighted toward the most innovative and most promising growth parts of our economy, such as technology, health care, and consumer discretionary sectors, while being underweight energy and materials relative to the S&P 500. The difference is even more significant when compared to value indexes, which tend to have even less exposure to innovative and growing sectors of the U.S. economy. Additionally,

1 Source: Asymco

3.2 COMMENTARY 4/4

The shift in as investors shift their focus away from central bank liquidity and increasingly seek companies with strong corporate fundamentals, the disparity in performance among investors’ focus companies that are capable of growing their earnings and companies that are losing market share to industry disrupters is likely to widen. The shift in investors’ focus to to fundamentals is fundamentals is likely to be highly beneficial for investors like Alger and our clients. likely to be highly beneficial for investors like Alger and our clients.

Asymco is a technology consulting firm. The S&P 500 index: An index of large company stocks considered representative of the U.S. stock market. Investors cannot invest directly in an index. Index performance does not reflect deduction for fees, expenses, or taxes. The views expressed are the views of Fred Alger Management, Inc. as of March 2016. Alger has used sources of information which it believes to be reliable; however, this publication is not intended to be and does not constitute investment advice. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security, or any funds managed by Fred Alger Management, Inc. These views should not be considered a recommendation to purchase or sell securities. Individual securities or industries/sectors mentioned, if any, should be considered in the context of an overall portfolio and therefore reference to them should not be construed as a recommendation or offer to purchase or sell securities. References to or implications regarding the performance of an individual security or group of securities are not intended as an indication of the characteristics or performance of any specific sector, industry, security, group of securities, or a portfolio and are for illustrative purposes only. Risk Disclosures: Investing in the stock market involves gains and losses and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks as the prices of growth stocks tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political and economic developments. Investing in foreign securities involves risks related to the political, social, and economic conditions of foreign countries, particularly emerging market countries. These risks may include political instability, exchange control regulations, expropriation, lack of comprehensive information, national policies restricting foreign investment, currency fluctuations, less liquidity, undiversified and immature economic structures, inflation and rapid fluctuations in inflation, withholding or other taxes, and operational risks. Special risks associated with investments in emerging country issuers include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and different auditing and legal standards. Foreign currencies are subject to risks caused by inflation, interest rates, budget deficits and low savings rates, political factors and government controls. Some of the countries may have restrictions that could limit the access to investment opportunities. The securities of issuers located in emerging markets can be more volatile and less liquid than those of issuers in more mature economies. Investing in emerging markets involves higher levels of risk, including increased information, market, and valuation risks, and may not be suitable for all investors. Before investing, carefully consider a fund’s investment objective, risks, charges and expenses. For a prospectus or a summary prospectus containing this and other information about a fund, call us at (800) 992-3863 or visit us at www. alger.com. Read it carefully before investing. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE. Fred Alger & Company, Incorporated, Distributor. Member NYSE Euronext, SIPC.

Fred Alger & Company, Incorporated 360 Park Avenue South, New York, NY 10010 / 800.992.3863 / www.alger.com 03.02.16 DCPMQA0316 3.3 Performance Review Investment Guidelines

Guidelines: • It is expected that the portfolio will be fully invested (<5% cash) at all times Yes • No more than 5% of the Portfolio, at the lesser of cost or market value, shall be invested in any one issue, unless that issue represents more than 5% of the Russell 1000 Growth Index. In such cases, the maximum amount allowed is 125% of the benchmark weight. Yes • Equity securities are limited to those issues listed on the New York, American, NASDAQ, or other nationally recognized U.S. Stock Exchanges Yes

Restrictions: • Foreign securities (except for Benefit Driven Incorporation (BDIs) included in the U.S. Russell 1000 Index) Yes • ADRs Yes • Short sales Yes • Futures Yes • Use of non-approved derivative securities (equity futures and forward contracts) Yes • Purchase of securities on margin Yes • Direct investment in raw commodities Yes

4.0 Performance Review Performance Comparison (as of February 29, 2016)

Los Angeles Los Angeles Department of Water Department of Water Russell 1000 & Power Employees' & Power Employees' Excess Return Growth Retirement Plan Retirement Plan Gross of Fees Net of Fees

2004 (2/17/04 - 12/31/04) 3.33% 3.04% 2.05% 2005 11.18% 10.82% 5.26% 2006 4.28% 3.94% 9.07% 2007 33.64% 33.21% 11.81% 2008 -46.80% -46.98% -38.44% 2009 47.47% 47.01% 37.21% 2010 19.62% 19.23% 16.71% 2011 -4.13% -4.46% 2.64% 2012 15.31% 14.95% 15.26% 2013 37.31% 36.92% 33.48% 2014 11.74% 11.42% 13.05% 2015 1.95% 1.66% 5.67%

2016 1st Quarter (through 2/29/16) -8.69% -8.69% -5.62% YTD -8.69% -8.69% -5.62%

Annualized Returns for the Period Ending 2/29/16

Inception-To-Date* 7.44% 7.11% 7.17% -0.06% 10 Years 7.51% 7.17% 7.74% -0.57% 5 Years 7.86% 7.53% 10.95% -3.42% 3 Years 10.78% 10.46% 12.54% -2.08% 2 Years -0.54% -0.83% 5.06% -5.89% 1 Year -11.89% -12.14% -5.05% -7.09%

*Inception date: 2/17/04

4.1 Performance Review Performance Comparison (as of February 29, 2016)

Los Angeles Department Los Angeles Department of Water & Power Retiree of Water & Power Retiree Russell 1000 Excess Return Health Benefits Fund Health Benefits Fund Growth Gross of Fees Net of Fees

2009 (9/11/09 - 12/31/09) 9.88% 9.77% 9.49% 2010 19.50% 19.11% 16.71% 2011 -3.97% -4.29% 2.64% 2012 15.38% 15.03% 15.26% 2013 37.35% 36.97% 33.48% 2014 11.77% 11.45% 13.05% 2015 2.03% 1.74% 5.67%

2016 1st Quarter (through 2/29/16) -8.71% -8.71% -5.62% YTD -8.71% -8.71% -5.62%

Annualized Returns for the Period Ending 2/29/16

Inception-To-Date* 11.99% 11.66% 13.55% -1.89% 5 Years 7.95% 7.62% 10.95% -3.33% 3 Years 10.83% 10.52% 12.54% -2.02% 2 Years -0.50% -0.78% 5.06% -5.84% 1 Year -11.86% -12.11% -5.05% -7.06%

*Inception Date: 9/11/09

4.2 Performance Review Performance Comparison (as of February 29, 2016)

15%

10%

0% Year‐to‐Date 1 Year 2 Years 3 Years 5 Years 10 Years Inception‐To‐Date (2/29/16)

‐5%

‐10%

‐15% LADWP Employees’ Retirement Plan (Gross) LADWP Employees’ Retirement Plan (Net) Russell 1000 Growth Index Inception: 2/17/04

4.3 Performance Review Performance Comparison (as of February 29, 2016)

15%

10%

0% Year‐to‐Date 1 Year 2 Years 3 Years 5 Years Inception‐To‐Date (2/29/16)

‐5%

‐10%

‐15% LADWP Employees’ Retiree Health Benefits Fund Plan (Gross) LADWP Employees’ Retiree Health Benefits Fund Plan (Net) Russell 1000 Growth Index Inception: 9/11/09

4.4 eVestment Alliance, LLC and its affiliated entities (collectively, “eVestment”) collect information directly from investment management firms and other sources believed to be reliable, however, eVestment does not guarantee or warrant the accuracy, timeliness, or completeness of the information provided and is not responsible for any errors or omissions. Performance results may be provided with additional disclosures available on eVestment’s systems and other important considerations such as fees that may be applicable. Not for general distribution and limited distribution may only be made pursuant to client’s agreement terms. * All categories not necessarily included, Totals may not equal 100%. Copyright 2012-2016 eVestment Alliance, LLC. All Rights Reserved. 4.5 Performance Review Sector Weightings and Characteristics (as of February 29, 2016)

Summary Characteristics Sector Weights (%) Russell Russell Active Characteristic Portfolio 1000 Sector Portfolio 1000 Weight Growth Growth

Market Cap (Weighted Average) $127.6B $128.1B Information Technology 37.4 27.6 9.8

Market Cap (Median) $11.9B $8.3B Consumer Discretionary 21.9 21.3 0.6 Estimated Earnings Growth – 1 13.5% 8.4% Health Care 12.7 16.1 -3.4 Year P/E (1 Year Forecasted) 19.5x 17.3x Financials 8.4 5.5 2.9 3–5 Year EPS Growth 16.0% 11.9% Industrials 8.2 11.0 -2.8 (Forecasted) Price/Cash Flow 18.3x 16.6x Consumer Staples 4.9 12.1 -7.2

Holdings 81 638 Telecommunication Services 0.9 2.4 -1.5

Materials 0.7 3.4 -2.7

Energy 0.4 0.5 -0.1

Utilities 0.0 0.1 -0.1

Cash 4.5 0.0 4.5

Data included as supplemental information. Alger uses The Global Industry Classification Standard (GICS®) for categorizing companies into sectors and industries. GICS is designed to meet the needs of the investment community for a classification system that reflects a company’s primary business model as determined by its financial performance. P/E Ratio is a weighted harmonic average based on consensus earnings estimates for the next 12 months; Revenue growth metrics represent a weighted median based on consensus earnings estimates for the next 12 months/last 12 months. Source: Factset Summary Characteristics

4.6 Performance Review 1 Year Sector Attribution Summary (as of February 29, 2016)

LADWP Russell 1000 Growth Variation Attribution Analysis

Average Total Contribution Average Total Contribution Average Total Contribution Allocation Selection + Total GICS Sector Mapping Weight Return to Return Weight Return to Return Weight Return to Return Effect Interaction Effect

Industrials 7.60 -6.49 -0.46 11.18 -9.78 -1.04 -3.58 3.29 0.58 0.13 0.26 0.39

Materials 1.20 -11.96 -0.13 3.70 -16.01 -0.61 -2.49 4.06 0.47 0.20 0.13 0.34

Telecommunication Services 1.05 -25.35 -0.32 2.09 5.38 0.14 -1.04 -30.72 -0.46 -0.10 -0.41 -0.51

Consumer Discretionary 18.32 -3.64 -0.19 20.43 0.48 0.02 -2.11 -4.12 -0.22 0.04 -0.58 -0.54

Utilities 0.47 -80.10 -0.60 0.06 -7.63 -0.01 0.41 -72.47 -0.59 -0.11 -0.52 -0.63

Consumer Staples 5.68 1.44 0.11 10.93 6.47 0.74 -5.25 -5.03 -0.63 -0.58 -0.32 -0.90

Energy 2.04 -57.79 -1.37 1.95 -49.05 -0.38 0.09 -8.74 -0.98 -0.70 -0.26 -0.96

Health Care 18.34 -18.68 -3.20 16.22 -11.02 -2.26 2.12 -7.66 -0.93 0.21 -1.40 -1.18

Financials 6.26 -33.99 -1.91 5.24 -8.50 -0.48 1.03 -25.49 -1.42 0.04 -1.39 -1.35

Information Technology 37.49 -9.00 -3.82 28.21 -4.20 -1.18 9.27 -4.79 -2.64 0.02 -1.63 -1.61

[Cash] 1.57 0.18 0.00 ------1.57 0.18 0.00 0.14 -- 0.14 Total 100.00 -12.14 -12.14 100.00 -5.06 -5.06 -- -7.08 -7.08 -0.96 -6.12 -7.08

Source: Factset

4.7 Performance Review 1 Year Top Ten Contributors and Detractors (as of February 29, 2016)

Top 10 Absolute Contributors Top 10 Absolute Detractors Average Average Alger Abs Average Average Alger Abs Portfolio Alger Bench Bench Contrib Portfolio Alger Bench Bench Contrib Alloc Return Alloc Return (bps) Alloc Return Alloc Return (bps)

Facebook Inc. Class A 4.55 35.52 1.85 35.39 132 Apple Inc. 7.43 -23.39 6.44 -23.34 -161

Amazon.com Inc. 2.64 22.38 1.84 45.34 55 SunEdison Inc. 0.79 -86.93 0.02 -91.06 -105

Alphabet Inc. Class C 4.24 22.98 1.74 25.30 47 LendingClub Corp 1.15 -51.69 0.01 -55.57 -78

Dealertrack Technologies Inc. 0.18 58.19 -- -- 33 Anadarko Petroleum Corporation 0.98 -55.67 0.01 -2.77 -67

Home Depot Inc. 1.69 5.76 1.47 10.36 26 Wisdomtree Investments Inc. 1.09 -30.17 -- -- -66

Cigna Corporation 0.65 17.83 0.24 14.82 26 LinkedIn Corporation Class A 0.37 -59.75 0.22 -56.14 -54

Coach Inc. 0.21 35.74 0.04 -6.98 24 GrubHub Inc. 1.00 -39.52 -- -- -50

Molson Coors Brew ing Company Class B 0.64 21.09 -- -- 22 Biogen Inc. 1.24 -17.03 0.73 -36.66 -45

Stamps.com Inc. 0.09 15.62 -- -- 22 Devon Energy Corporation 0.56 -41.14 -- -- -45

Edwards Lifesciences Corporation 0.58 33.45 0.15 30.81 21 Demandware Inc. 0.80 -43.49 -- -- -43

Source: Factset

4.8 Performance Overview Explanation for Performance vs. the Benchmark

During the twelve months ending February 29, 2016, the Los Angeles Department of Water & Power’s Large Cap Growth portfolio returned -11.89% (gross of fees) compared to a return of -5.05% for the Russell 1000 Growth Index. On average for the period, the largest weightings at the sector level were Information Technology, Health Care, and Consumer Discretionary. The largest sector overweight for the period was in Information Technology and the largest sector underweight for the period was in Consumer Staples. The Industrials and Materials sectors contributed to relative performance, while Information Technology, Financials, and Health Care detracted from the portfolio’s relative performance. The top absolute contributors at the stock level were Facebook Inc. Class A, Amazon.com Inc., Alphabet Inc. Class C, Dealertrack Technologies Inc., and Home Depot Inc. Conversely, detracting from overall results were Apple Inc., SunEdison Inc., LendingClub Corp, Anadarko Petroleum Corporation, and Wisdomtree Investments Inc..

4.9 Portfolio Review and Characteristics Top Ten Holdings (as of February 29, 2016)

Top 10 Holdings (%) Russell Portfolio Company Sector 1000 Weight Growth

Apple Inc. 6.3 Information Technology 5.6

Alphabet Inc. Class C 5.6 Information Technology 2.1

Facebook, Inc. Class A 4.9 Information Technology 2.3

Amazon.com, Inc. 3.6 Consumer Discretionary 2.1

Microsoft Corporation 3.6 Information Technology 2.4 Norwegian Cruise Line Holdings 2.2 Consumer Discretionary 0.1 Ltd. LendingClub Corp 2.0 Financials 0.0

Intuitive Surgical, Inc. 1.9 Health Care 0.2

Wisdomtree Investments, Inc. 1.9 Financials 0.0

Home Depot, Inc. 1.9 Consumer Discretionary 1.6

Total 33.9 16.4

Source: Factset

5.0 Portfolio Review and Characteristics Portfolio Holdings by Sector (as of February 29, 2016)

R1000 R1000 R1000 LADWP Growth LADWP Growth LADWP Growth Consumer Discretionary 21.9 21.3 Industrials 8.2 11.0 Cash 4.5 0.0 Amazon.com, Inc. 3.6 2.1 Danaher Corporation 1.0 0.1 CBS Corporation Class B 1.2 0.2 Delta Air Lines, Inc. 1.0 0.4 Chipotle Mexican Grill, Inc. 1.0 0.2 HD Supply Holdings, Inc. 1.6 0.1 Total 100.0 100.0 Coach, Inc. 0.7 0.0 Hexcel Corporation 0.9 0.0 Comcast Corporation Class A 0.7 1.3 Honeywell International Inc. 1.3 0.8 Discovery Communications, Inc. Class A 0.2 0.0 Stericycle, Inc. 0.6 0.1 Hanesbrands Inc. 0.2 0.1 TransDigm Group Incorporated 0.6 0.1 Home Depot, Inc. 1.9 1.6 Verisk Analytics Inc 1.2 0.1 Lennar Corporation Class A 0.9 0.0 Live Nation Entertainment, Inc. 0.5 0.0 Michael Kors Holdings Ltd 0.5 0.1 Information Technology 37.4 27.6 Netflix, Inc. 1.5 0.4 Adobe Systems Incorporated 0.8 0.4 Norwegian Cruise Line Holdings Ltd. 2.2 0.1 Alphabet Inc. Class C 5.6 2.1 Panera Bread Company Class A 0.9 0.1 Apple Inc. 6.3 5.6 Priceline Group Inc 1.1 0.7 CoStar Group, Inc. 0.4 0.1 Ralph Lauren Corporation Class A 0.7 0.0 Demandware, Inc. 0.3 0.0 Shake Shack, Inc. Class A 1.4 0.0 Electronic Arts Inc. 0.5 0.2 Signet Jewelers Limited 0.9 0.1 Euronet Worldwide, Inc. 0.8 0.0 Tesla Motors, Inc. 0.5 0.2 Facebook, Inc. Class A 4.9 2.3 Tiffany & Co. 0.5 0.1 FLIR Systems, Inc. 1.7 0.0 Time Warner Inc. 0.9 0.3 GrubHub, Inc. 0.8 0.0 Guidewire Software, Inc. 0.7 0.0 Juniper Networks, Inc. 1.0 0.0 Consumer Staples 4.9 12.1 Microsemi Corporation 1.4 0.0 Kraft Heinz Company 1.2 0.5 Microsoft Corporation 3.6 2.4 Kroger Co. 1.2 0.4 salesforce.com, inc. 0.6 0.5 Molson Coors Brewing Company Class B 0.9 0.0 ServiceNow, Inc. 0.7 0.1 TreeHouse Foods, Inc. 0.7 0.0 Skyworks Solutions, Inc. 1.3 0.1 WhiteWave Foods Company 0.9 0.1 Stamps.com Inc. 1.2 0.0 Take-Two Interactive Software, Inc. 0.5 0.0 Trimble Navigation Limited 0.8 0.0 Energy 0.4 0.5 TubeMogul, Inc. 1.4 0.0 Anadarko Petroleum Corporation 0.4 0.0 Ultimate Software Group, Inc. 0.4 0.1 Vantiv, Inc. Class A 0.5 0.1 Visa Inc. Class A 1.4 1.4 Financials 8.4 5.5 Affiliated Managers Group, Inc. 1.2 0.1 American Express Company 0.5 0.1 Materials 0.7 3.4 AvalonBay Communities, Inc. 1.4 0.0 Air Products and Chemicals, Inc. 0.7 0.2 Blackstone Group L.P. 1.5 0.0 LendingClub Corp 2.0 0.0 Wisdomtree Investments, Inc. 1.9 0.0 Telecommunication Services 0.9 2.4 SBA Communications Corporation 0.9 0.1

Health Care 12.7 16.1 Biogen Inc. 0.9 0.6 Utilities 0.0 0.1 Bristol-Myers Squibb Company 1.4 1.0 Celgene Corporation 1.3 0.8 Edwards Lifesciences Corporation 0.6 0.2 Eli Lilly and Company 0.6 0.7 Gilead Sciences, Inc. 1.1 1.3 Hologic, Inc. 1.0 0.1 Incyte Corporation 0.4 0.1 Intuitive Surgical, Inc. 1.9 0.2 Neogen Corporation 0.4 0.0 Pacira Pharmaceuticals, Inc. 0.6 0.0 Thermo Fisher Scientific Inc. 0.7 0.2 Veeva Systems Inc Class A 0.5 0.0 Vertex Pharmaceuticals Incorporated 1.2 0.2

5.1 Portfolio Review and Characteristics Portfolio Asset Change Analysis (as of February 29, 2016)

LADWP Retirement Plan Health Benefits Fund

Beginning Balance* $243,664,121 $43,098,188

Contributions $70,102,466 $6,593,876

Withdrawals -$291,719,175 -$37,300,327

Investment Return $385,136,506 $56,016,284

Ending Balance (2/29/16) $407,183,918 $68,408,021 *Beginning balance is as of inception (Retirement 2/17/04, Health Benefit Fund 9/11/09) ``````

5.2 Performance Review Sector Weightings and Characteristics (as of February 29, 2016)

Summary Characteristics Sector Weights (%) Russell Russell Active Characteristic Portfolio 1000 Sector Portfolio 1000 Weight Growth Growth

Market Cap (Weighted Average) $127.6B $128.1B Information Technology 37.4 27.6 9.8

Holdings 81 638 Telecommunication Services 0.9 2.4 -1.5

Materials 0.7 3.4 -2.7

Energy 0.4 0.5 -0.1

Utilities 0.0 0.1 -0.1

Cash 4.5 0.0 4.5

5.3 Portfolio Review and Characteristics Explanation for Sector Diversification vs. the Benchmark

We use a bottom-up, stock selection process. Any sector or industry weighting is a residual of our bottom-up stock selection process. As of February 29, 2016, stock selection resulted in the portfolio being overweight in the Information Technology, Financials, and Consumer Discretionary sectors. Underweight sectors included Energy, Utilities, Telecommunication Services, Materials, Industrials, Health Care, and Consumer Staples.

5.4 Portfolio Review and Characteristics Portfolio Characteristics (as of February 29, 2016)

Characteristics

Portfolio Benchmark

# of Holdings 81 638 Wtd Avg Mkt Cap ($B) $127.6 $128.1 Median Market Cap ($B) $11.9 $8.3 Div Yield 1.0% 1.7% P/E (12M Trailing) 20.8x 18.2x P/E (12M Forward) 19.5x 17.3x Price/Book 4.3x 5.4x Price/Sales 2.5x 1.9x Price/Cash flow 18.3x 16.6x 1 Yr EPS Growth 13.5x 8.4x Hist 3 Yr EPS Growth 50.7% 46.2% Est 3-5Yr EPS Growth 16.0% 11.9% ROE 20.5% 27.7%

Source: FactSet

Portfolio Commissions 12-month trailing commissions as of 2/29/16: $1,420,323.18 3.24¢ avg cost per share

5.5 Portfolio Review and Characteristics Portfolio Characteristics (as of February 29, 2016)

Risk (Benchmark: Russell 1000 Growth)

LADWP

Tracking Error 1.36% Annualized Std Dev 13.09% Relative Volatility 1.18x Correlation 0.94 Beta 1.10 R-Squared 87.86 Annualized Alpha -2.82 Jensen's Alpha -2.86 Information Ratio -0.42 Sharpe Ratio 0.81 Treynor Ratio 9.59 Highest Excess Return 8.06% Lowest Excess Return -3.30% 1 Year Turnover 248%

Source: FactSet, based on monthly returns from 2/28/13 through 2/29/16, unless noted otherwise

5.6 Portfolio Review and Characteristics Risk/Return Chart – 10 Years ending (as of February 29, 2016)

(%) 9

Return

14 15 16 17 18 19 20

6 Return Std. Dev. Standard Deviation (%) LADWP Ret. 7.51 18.00 R1000 Growth 7.74 15.33 LADWP Russell 1000 Growth

5.7 Fee Schedule

Annual Fee on all Assets

0.285%

6.0 Additional Information and Disclosures

In September 2015, Vikram Khullar, CFA joined Alger as Senior Analyst covering the Technology sector. Vikram has 17 years of investment experience.

In February 2015, Alger Management, Ltd. began a joint partnership with La Française, an international multi-class asset manager. This alliance offers the opportunity to create synergies in distribution, market development, and product diversification. La Française, through its European network and with the support of its majority shareholder, Credit Mutuel Nord Europe, provides distribution capabilities and acceleration capital, and Alger contributes its recognized expertise in growth equities.

7.0 Additional Information and Disclosures

In July 2011, a lawsuit was filed against Fred Alger Management, Inc., among others, by a former Fred Alger Management, Inc. employee alleging among other things that she was wrongfully discharged. Fred Alger Management, Inc., as well as the other parties to the suit moved to dismiss this complaint on the basis of its belief that the allegations fail to state a case. On September 27, 2012, 9 of 10 claims brought were dismissed. Alger remains convinced that this remaining claim is without merit. Fred Alger Management, Inc. does not consider this case to be material to its operations or financial condition.

7.1 Appendix

8.0 Senior Investment Professional Biographies

Daniel C. Chung, CFA Jill Greenwald, CFA* Patrick Kelly, CFA Chief Executive Officer, Chief Investment Officer, Executive Vice President, Portfolio Manager Executive Vice President, Portfolio Manager, Head of Portfolio Manager Investment experience: 29 years Alger Capital Appreciation and Spectra Strategies Investment experience: 21 years Investment experience: 18 years

Daniel C. Chung is Chief Executive Officer, Chief Jill Greenwald is Executive Vice President and Portfolio Patrick Kelly is Executive Vice President, Portfolio Investment Officer and Portfolio Manager of several Alger Manager of the Alger SMid Cap Growth strategies and, Manager and Head of Alger Capital Appreciation and strategies. Dan joined Alger in 1994 and has 21 years of along with Amy Zhang, the Alger Small Cap Growth Spectra Strategies. He is Portfolio Manager of the investment experience. He was named Chief Investment strategies. She first joined Alger in 1986 and has 29 Alger Capital Appreciation, Alger Capital Appreciation Officer in September 2001, President in 2003, and CEO years of investment experience. Jill, who returned to Focus, Alger Spectra, and Alger Dynamic in 2006. Dan graduated from Stanford University with Alger in 2001, began her career in Alger's analyst Opportunities strategies. He joined Alger in 1999 and B.A. and B.S. degrees, with Distinction and Phi Beta program, rising from Research Associate to Senior has 18 years of investment experience. Previously, Kappa, in 1984. He earned his J.D. magna cum laude Analyst. She joined Prudential Equity Investors in 1992 Patrick was an investment banking analyst with SG from Harvard Law School in 1987, where he was an where she was a Director. In 1993, she joined Chase Cowen. He began his career at Alger as a Research editor of the Harvard Law Review. After law school, he Asset Management where she rose from Analyst to Associate and completed Alger’s in-house analyst served as law clerk for the Honorable Justice Anthony M. Managing Director and Senior Portfolio Manager of training program. In early 2001, Patrick was promoted Kennedy, United States Supreme Court. He joined Chase Vista Small Cap Equity Fund and Co-Manager of to Associate Analyst and Assistant Vice President, Simpson Thacher & Bartlett LLP in New York City in 1989 Chase Vista Small Cap Opportunities Fund. She joined and in September of 2001 he was promoted to Senior and earned an L.L.M. from New York University. Dan is a J&W Seligman & Co. as a Senior Vice President, Analyst, responsible for the Technology sector. CFA charterholder and a member of the CFA Institute. Investment Officer and Co-Manager of Seligman Patrick was named portfolio manager of the Alger Throughout his tenure at Alger, Dan has made numerous Emerging Growth in 1999. Jill earned a B.A. from Yale Capital Appreciation and Alger Spectra strategies in TV appearances on Bloomberg, CNBC, and Fox University and M.B.A. from New York University. Jill is a September 2004, and was named as head of the Business. Dan has also been featured and quoted CFA charterholder and a member of the CFA Institute. strategies in 2015. He graduated with honors from frequently in Barron’s, Citywire, Forbes, Investment Georgetown University. Patrick is a CFA charterholder News, Pensions & Investments, USA Today, and the Wall and a member of the CFA Institute. Street Journal.

*On temporary medical leave.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.1 Senior Investment Professional Biographies

Gregory S. Adams, CFA Ankur Crawford, Ph.D. Alex Goldman Senior Vice President, Portfolio Manager, Senior Vice President, Senior Analyst, Senior Vice President, Senior Analyst, Director of Quantitative & Risk Management Portfolio Manager Portfolio Manager Investment experience: 28 years Investment experience: 11 years Investment experience: 17 years

Gregory Adams is a Senior Vice President, Portfolio Ankur Crawford is Senior Vice President, Senior Analyst, Alex Goldman is Senior Vice President, Senior Manager of the Alger Dynamic Opportunities strategy, the and Portfolio Manager of the Alger Capital Appreciation, Analyst covering the industrials sector, and a Portfolio Alger Growth and Income strategy, and Director of Alger Spectra, and Alger Mid Cap Growth strategies. Manager of the Alger Mid Cap Focus as well as Alger Quantitative & Risk Management. Greg joined Alger in Ankur joined Alger in September 2004 and has 11 years Mid Cap Growth strategies. He joined Alger in 2011 2006 and has 28 years of experience. Previously, he was of investment experience. She began her career at Alger and has 17 years of investment experience, most Director of Quantitative Research at Lord Abbett & Co., and as a Research Associate and completed Alger’s in-house recently as a research analyst at CastleRock was responsible for portfolio construction simulation and analyst training program. Over the next several years, Management. He has also served in various roles at quantitative stock selection. Over the course of his career, Ankur was promoted to Associate Analyst, Analyst, and Morgan Stanley in the Equity Financing Services, Risk Greg was Managing Director and Portfolio Manager at then ultimately to Senior Analyst. Ankur also became a Management Group, and Sell-Side Research Deutsche Asset Management and The Chase Manhattan portfolio manager to the Alger Mid Cap Growth strategies Department. Alex earned his B.S. from Columbia Bank. At Deutsche, where he managed over $10 billion in in 2010. In 2015, Ankur was named a portfolio manager University School of Engineering and Applied Science assets, he was the lead Portfolio Manager for the U.S. of the Alger Capital Appreciation and Alger Spectra and his M.B.A. from Columbia University School of Large Cap Core Funds, including Scudder’s flagship strategies. Prior to joining Alger, she earned a Ph.D. in Business. Growth & Income Fund. Greg began his tenure at Chase in Materials Science and Engineering from Stanford 1987 as an equity analyst and was promoted to University. Ankur was an awardee of the prestigious Intel Co‐Manager of the Chase Vista Balanced Fund and the Corporation Ph.D. Fellowship Program and worked as an Chase Vista Growth & Income Fund, managing over $2 engineer with Intel. Previously, she was a summer billion during his tenure. In 1994, Greg was named analyst with Merrill Lynch. She graduated from the Manager of the Chase Vista Large Cap Equity Fund. Greg University of California, Berkeley, with a B.S. in earned a B.A. in American History from the University of Mechanical Engineering and a B.S. in Materials Science Pennsylvania’s School of Arts & Sciences and a B.S. in and Engineering. Economics and Finance from The Wharton School. Greg is a CFA charterholder and a member of the CFA Institute.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.2 Senior Investment Professional Biographies

Pedro Marcal Teresa McRoberts Deborah Vélez Medenica, CFA Senior Vice President, Portfolio Manager Senior Vice President, Senior Analyst, Senior Vice President, Portfolio Manager Investment experience: 26 years Portfolio Manager Investment experience: 19 years Investment experience: 33 years

Pedro Marcal is Senior Vice President, Portfolio Manager Teresa McRoberts is Senior Vice President, Senior Deborah Vélez Medenica is Senior Vice President, of the Alger International Growth Strategy, and Portfolio Analyst, and Portfolio Manager of the Alger Health Portfolio Manager of the Alger Emerging Markets Manager of the Alger Global Growth Strategy, for which Sciences Fund, as well as a Portfolio Manager on the Strategy, and Portfolio Manager of the Alger Global he manages the international developed portion of the Alger Mid Cap Growth strategy. She first joined Alger in Growth Strategy, for which she manages the emerging portfolio. He joined Alger in 2013 and has 26 years of 1994 and has 33 years of investment experience. Before markets portion of the portfolio. She joined Alger in investment experience. Prior to joining Alger, Pedro rejoining Alger in 2015, Teresa was the portfolio December 2010 and has 19 years of experience in worked at Allianz Global Investors (formerly Nicholas- manager at Bienville Health Science Partners, a emerging markets. Prior to joining Alger, Deborah Applegate Capital Management), where he focused on company she founded. Her previous experience worked at PineBridge Investments (formerly AIG international equities including developed and emerging includes health care portfolio manager roles at Galleon Investments), where she rose from investment analyst markets. During his tenure there, he helped develop the Group, Carlyle Blue Wave Partners, and Tribeca Global to portfolio manager to the head of emerging market firm’s emerging markets products before moving on to Management (Citigroup). Prior to that, she returned to equities. Prior to PineBridge, she worked as an analyst manage global and developed international equity Alger in 2001 as Senior Health Care Analyst and for Baring Asset Management, Toronto Dominion Bank, portfolios. Pedro earned his B.A. from the University of Portfolio Manager, and launched the Alger Health and Cambridge Associates. Deborah graduated with an California at San Diego and his M.B.A. from the UCLA Sciences Fund. Before returning to Alger, she was a A.B. from Harvard-Radcliffe College, earned her M.A. in Anderson School of Management. portfolio manager and principal at Morgan Stanley. Her International Economics and Latin American Studies prior experience includes working as a health care from Johns Hopkins School of Advanced International analyst at Alger, and analyst and corporate finance roles Studies, and earned her M.B.A. from The Wharton at JP Morgan. Teresa earned her B.A. from Oberlin School. In addition, Deborah is a CFA charterholder and College and her M.B.A. from Columbia University. a member of the CFA Institute.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.3 Senior Investment Professional Biographies

Michael J. Melnyk, CFA Christopher R. Walsh, CFA Amy Y. Zhang, CFA Senior Vice President, Senior Analyst, Senior Vice President, Senior Analyst, Senior Vice President, Portfolio Manager Portfolio Manager Portfolio Manager Investment experience: 18 years Investment experience: 16 years Investment experience: 18 years

Michael Melnyk is Senior Vice President and Senior Christopher Walsh is Senior Vice President, Portfolio Amy Zhang is Senior Vice President and Portfolio Analyst covering the consumer sector with a focus on Manager of the Alger Green Fund, and Manager of the Alger Small Cap Focus Fund and, leisure, media, REITs, telecommunications, packaging, a Portfolio Manager of the Alger Mid Cap Growth along with Jill Greenwald, the Alger Small Cap Growth gaming, and hotels. Michael is also a Portfolio Manager strategy. He is also Senior Analyst responsible for the strategies. She joined Alger in 2015 and has 18 years of the Alger Mid Cap Growth strategy. He rejoined Alger retailing, footwear, apparel manufacturing, auto/auto of investment experience. Prior to joining Alger, Amy in 2007 and has 16 years of investment experience. suppliers, and restaurant industries. He joined Alger in worked at Brown Capital Management as a Managing Previously, Mike covered the consumer sector as an 2001 and has 18 years of investment experience. Director and Senior Portfolio Manager of its Brown analyst at SAC Capital Management/CR Intrinsic and as Previously, he worked at Van Der Moolen Specialists Capital Small Company Fund. Her previous Senior Analyst at Maverick Capital. From 2001 to 2004, USA as an equity analyst and at Prudential Securities as experience includes working as a Portfolio he was Assistant Vice President and Analyst at Fred an associate retail analyst. He graduated with a B.S. Manager/Analyst at Epsilon Investment Management, Alger Management, Inc. focusing on consumer stocks. from the University of Vermont. Christopher is a CFA Research Analyst at Templeton Worldwide, and Mike’s earliest assignments were at Credit Suisse First charterholder and a member of the CFA Institute. Associate at Citicorp Securities. Amy earned her B.A. Boston as an investment banking analyst and later as from Manhattanville College, where she graduated equity research associate. He graduated summa cum Summa Cum Laude. She earned her M.B.A. from laude from the University of Notre Dame with a B.B.A. in Columbia Business School, where she was inducted Finance. Mike is also a CFA charterholder and a member into the Beta Gamma Sigma honor society and named of the CFA Institute. to the Dean’s List. She is also a member of the Columbia Business School Ambassadors Program. Amy is a CFA charterholder and a member of the CFA Institute. She is a former President of the CFA Society Baltimore and is currently chair of their Advisory Board. She also served as a member on the Board of Directors, as well as Vice President and Programs Chair for the CFA Society of Stamford.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.4 Client Portfolio Manager Biographies

Kevin D. Collins, CFA William Rechter, CFA Senior Vice President, Client Portfolio Manager Senior Vice President, Client Portfolio Manager Investment experience: 23 years Investment experience: 44 years

Kevin D. Collins is Senior Vice President and Client Bill Rechter is a Senior Vice President and Client Portfolio Portfolio Manager. Kevin joined Alger in 1996 as an Manager. He joined Alger in 2005 and has 44 years of analyst covering industrials and business services. He investment experience. Prior to joining Alger, Bill worked has 23 years of investment experience. Prior to his at ING Investment Management as a Senior Vice role as Client Portfolio Manager, he was Portfolio President and Senior Portfolio Specialist representing the Manager of the Income and Growth portfolios and the Value, Growth, and International investment teams. Over equity portion of Alger's Balanced portfolios. Before the course of his career, Bill has been the Chief joining Alger, Kevin was an equity analyst at The Investment Officer of Hillview Capital Advisors, Managing Bank of New York. He received his B.A. degree from Director and Senior Portfolio Manager at SG Cowen the University of Pennsylvania and earned his M.B.A. Asset Management, and President of Sperry Capital from Northwestern University. Kevin is a CFA Management Corp. He has also held analytical and charterholder and a member of both the CFA Institute portfolio management positions at Value Line, Lehman and the New York Society of Security Analysts. Brothers, U.S. Trust Company and Manufacturers Hanover Trust Company. Bill graduated with a B.B.A. in finance from the University of Massachusetts and earned his M.B.A. in finance and investments from the New York University Graduate School of Business. He is a CFA charterholder and a member of the CFA Institute.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.5 Analyst Biographies

Michael Anderson, CFA Peter Chang, CFA Andrew Gustin Associate Analyst Associate Analyst Vice President, Analyst Sector: Technology Sector: Industrials Sector: Industrials Investment Experience: 7 years Investment Experience: 13 years Investment Experience: 11 years Education: B.S., Cornell University; M.B.A., Cornell Education: B.B.A., University of Michigan Education: B.A. and M.A., Stanford University; M.B.A., University, Johnson Graduate School of Management Business School Stanford Business School

Darryl Ah Now, CFA Jeff Chen Brian Hertzog Senior Vice President, Senior Analyst Research Associate Vice President, Analyst Sector: Consumer Sector: Financials Sector: Technology, Portfolio Support (Small/SMid) Investment Experience: 15 years Investment Experience: 1 year Investment Experience: 16 years Education: B.Com., Queens University; M.B.A., Education: B.A., Dartmouth College Industry Experience: 2 years (General Partner, Ridge University of Chicago Partners LLC)

Thomas DeBourcy, CFA Education: B.A., St. John’s University Natalie Blosser Vice President, Analyst Research Associate Sector: Health Care Tim Jausovec Sector: Health Care Investment Experience: 10 years Research Associate Investment Experience: 1 year Education: B.S., Wharton School, University of Sector: Technology Education: B.A., Harvard University Pennsylvania Investment Experience: 1 year Education: B.S., Stanford University Anna Gurvich Nidhi Chadda Associate Analyst Vice President, Analyst Karen Jay, Ph.D. Sector: Consumer Sector: Consumer Associate Analyst Investment Experience: 7 years Investment Experience: 14 years Sector: Health Care Education: B.S., Cornell University School of Hotel Education: B.S., Wharton School, University of Investment Experience: 11 years Administration Pennsylvania ; M.B.A., Harvard Business School Industry Experience: 6 years (research assistant, Robarts Research Institute, Krembil Center for Stem

Cell Biology, Canada) Education: B.Sc., University of Toronto; Ph.D., University of Western Ontario

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.6 Analyst Biographies

Vikram Khullar, CFA Andrew Merrill, CFA Eric Richards, CFA Vice President, Senior Analyst Vice President, Analyst Vice President, Analyst Sector: Technology Sector: Energy/Materials/Utilities Sector: Energy/Materials/Utilities Investment Experience: 16 years Investment Experience: 8 years Investment Experience: 16 years Industry Experience: 16 years Education: B.S., Boston College Wallace E. Carroll Education: B.A., Saint Olaf College; M.B.A., Education: B.S., Indian Institute of Technology; M.A., School of Management Georgetown Ohio State University; M.B.A. New York University Stern School of Business David B. Molnar, CFA Brendan Rice Vice President, Analyst Research Associate Sector: Emerging Markets Sector: Consumer Marcus Kupferschmidt Investment Experience: Investment Experience: Vice President, Analyst 18 years 2 years Education: Education: Sector: Technology B.A., Haverford College; Diploma, B.S., Boston College Carroll School of Economics, London School of Economics and Political Management Investment Experience: 16 years Science; M.A., Fletcher School of Law and Diplomacy,

Education: B.A., Northwestern University Tufts University

Kirsten Schnackenberg

Research Associate David Lewis George Ortega Vice President, Analyst Research Associate Sector: Generalist, On Rotation Sector: Portfolio Support Sector: Technology Investment Experience: 1 year Investment Experience: 13 years Investment Experience: 2 years Education: B.A., Yale University Education: B.A. and B.S, Georgetown University; Education: B.A., Yale University M.B.A., New York University Stern School of Business

Ben Reynolds CJ Sylvester Vice President, Analyst Vice President, Analyst Matthew Margolis Sector: Health Care Vice President, Analyst Sector: Technology/Telecom Investment Experience: 18 years Sector: Health Care Investment Experience: 13 years Education: B.A., Bucknell University; M.S., Investment Experience: 12 years Education: B.S., University of Virginia McIntire School The College of William & Mary Education: B.A., Amherst College of Commerce; M.B.A., New York University Stern School of Business

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.7

Analyst Biographies

Siang Meng Tan, CFA Warren Zhang, CFA Vice President, Analyst Vice President, Analyst Sector: Emerging Markets Sector: International Markets Investment Experience: 20 years Investment Experience: 19 years Industry Experience: 3 years (relationship manager, Education: B.S., Tongji University; M. A., University offshore/onshore business at Citibank) of California at Riverside; M.A., Yale University Education: B.S., Indiana University; M.B.A., University School of Management of North Carolina

Timothy Wengerd, CFA Associate Analyst Sector: Portfolio Support Investment Experience: 7 years Education: B.S., Wharton School, University of Pennsylvania; M.B.A., New York University Stern School of Business

Steven Yang Vice President, Analyst Sector: Industrials Investment Experience: 11 years Industry Experience: 7 years (senior auditor, KPMG LLP, health care and life sciences sector, and analyst and strategic planning specialist at Stanford University Medical Center) Education: B.A., Yale University; M.B.A., New York University Stern School of Business

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.8 Alger Institutional Sales & Service

Sales & Consultant Relations Client Service

John Carbone Peter W. Latara Senior Vice President Senior Vice President Experience: 20 years Experience: 19 years • BNY Mellon Investment Management; Vice President and Director, • Gabelli Asset Management, Inc.; Vice President Institutional Investments • Black, Manafort, Stone & Kelly; Senior Research Associate • The Hartford; Managing Director, Institutional Sales Education: Education: • University of Maryland, Robert H. Smith, School of Business, M.B.A. Providence College, B.S. • Emory University, B.A.

Ted Doyle Michael Lynam Senior Vice President Vice President Experience: 13 years Experience: 12 years • Ark Asset Management Co., Inc.; Senior Manager • Franklin Templeton Resources, Inc.; Relationship Manager • Bloomberg, L.P.; Account Executive • Goldman Sachs & Co.; Business Development Services Education: Education: • United States Military Academy at West Point, B.S • Loyola University Maryland, B.A.

Meredith Genova Nicolaescu Chelsea Charette Vice President Assistant Vice President Experience: 18 years Experience: 5 years • Stux Capital Management; Marketing, Consultant Relations • Lord, Abbett & Co.; Regional Consultant • AllianceBernstein L.P.; Consultant Relations, Subadvisory Services Education: Education: • Union College, B.A. • The College of William and Mary, B.A.

Robert O’Dell, CFA, CAIA Vice President Experience: 9 years • New York Life Investment Management; Internal Wholesaler • Ameriprise Financial; Financial Advisor Education: • Villanova University, B.A.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.9 Compensation and Incentives Aligned With Talent Retention

Founded in 1964, Alger remains an independent, family-owned business with incentive programs to attract and retain key employees Alger Associates, Inc.

Fred Alger & Company, Incorporated

Fred Alger Alger Partners Plan Profit Participation Program Management, Inc. • Daniel Chung, CFA, CEO, CIO, Portfolio Manager • 35% of total employee base • Ankur Crawford, Ph.D., Senior Analyst, Portfolio Manager • 100% of eligible Senior Analysts and • Jill Greenwald, CFA, Portfolio Manager Portfolio Managers* • Patrick Kelly, CFA, Portfolio Manager • 67% of Analysts • Hal Liebes, COO, Chief Legal Officer • James Tambone, Chief Distribution Officer

The Alger Partners Plan incentivizes key investment and non‐investment The Alger Profit Participation Plan gives key personnel the opportunity to have executives through a phantom equity program that grants pro‐rata rights to equity‐like participation in the long‐term growth and profitability of the Firm. growth in the Firm’s book value, dividend payments, and participation in any There is broad participation in the program amongst the investment significant corporate transactions (e.g. partial sale, initial public offering, professionals, and reinforces our analysts and portfolio managers’ commitment merger, etc.) The Firm does not have a limit on the overall percentage of the seeking to generate superior investment performance for our clients. The Firm’s value that it will convey through this program; presently, grants made awards are invested in Alger mutual funds and have a four‐year vesting under The Alger Partners Plan represents over 15% of the value of the Firm. schedule. The total award earned can increase or decrease with Alger’s Grants are determined annually. investment and Alger’s earnings results over the four-year period. Participation is determined annually.

As of 12/31/15. *Members in the Alger Partners Plan do not currently participate in the Alger Profit Participation Plan. Alger Associates, Inc. is the owner of 100% of the shares of Fred Alger & Company, Incorporated which in turn owns 100% of the shares of Fred Alger Management, Inc.

For Institutional Presentation Purposes Only. Not for Distribution to the Public. 8.10 Glossary of Investment Terms

Alpha

Alpha is a risk (beta-adjusted) return measurement. If two managers had the same return, but one had a lower beta, that manager would have a higher alpha.

This value is annualized by raising the Alpha to the number of annual periods.

Beta

The systematic risk of a portfolio excluding the cash return. The beta of a portfolio is its sensitivity to a benchmark. A portfolio with a beta of 1 is as risky as the benchmark and would therefore provide expected returns equal to those of the market during both up and down periods. A portfolio with a beta of 2 would move approximately twice as much as the benchmark.

Correlation

The linear relationship between two return series. Correlation shows the strength of the relationship between two return series. The higher the correlation, the more similar the returns.

Information Ratio

A measure of consistency in excess return. The annualized excess return over a benchmark divided by the annualized standard deviation of excess return.

Jensen’s Alpha

A risk-adjusted performance measure that is the average return on a portfolio over and above that predicted by the CAPM, given the portfolio's beta and the average market return. Jensen’s Alpha measures the value added of an active strategy.

9.0 Glossary of Investment Terms

R-Square

R-Square is the correlation squared. It is used in style analysis to determine how much information about a return series the style benchmark has been able to capture. The higher the R-squared, the better the benchmark. Thus, if you are looking at the R-Square statistic for a fund versus 2 different benchmarks, the benchmark with the higher statistic does a better job explaining the return of the fund in question.

Sharpe Ratio

A risk-adjusted measure that measures reward per unit of risk. The higher the Sharpe Ratio, the better. The numerator is the difference between the portfolio’s annualized return and the annualized return of the risk-free instrument (T-Bills). The denominator is the portfolio’s annualized standard deviation (population).

Standard Deviation

A statistical measure of the degree to which an individual portfolio return tends to vary from the mean, based on a sample. The greater degree of dispersion, the greater degree of risk.

This value is annualized by multiplying the sample standard deviation by the square root of the annual number of the frequency (260 for daily frequency, 12 for monthly frequency, 4 for quarterly frequency). The greater degree of dispersion, the greater degree of risk.

Tracking Error The active risk of the portfolio. It determines the annualized standard deviation of the excess returns between the portfolio and the benchmark. In other words, create a new return series of the excess returns and then calculate the population standard deviationof that return series.

Treynor Ratio

Measures reward per unit of beta risk. The numerator of this ratio is the difference between the portfolio annualized return, and the annualized return of the risk-free instrument (T-Bills). The denominator is the portfolio’s beta.

9.1