March 11th, 2020 State of Connecticut BlackRock’s Proposal for Passive Investment Management Partnership FOR USE WITH STATE OF CONNECTICUT ONLY – PROPRIETARY AND CONFIDENTIAL ICBH0320U-1107245-1/90 With You Today Emily Foote Kathryn Donovan Paul Francis Index Equity Strategy Systematic Fixed Income Strategy Transition Management Zaneta Koplewicz Samantha Trabucco Senior Relationship Manager Relationship Manager ICBH0320U-1107245-2/90 FOR USE WITH STATE OF CONNECTICUT ONLY - PROPRIETARY AND CONFIDENTIAL 2 Table of Contents I. BlackRock Strategic Partnership II. BlackRock Index Investments Overview III. BlackRock Index Investments Philosophy and Process IV. Performance Attribution V. Equity Index Events VI. Transition Management Capabilities VII. Appendix - Fee Proposal & Performance Composites VIII. Appendix - Platform Offerings IX. Disclosures ICBH0320U-1107245-3/90 FOR USE WITH STATE OF CONNECTICUT ONLY - PROPRIETARY AND CONFIDENTIAL 3 I. BlackRock Strategic Partnership ICBH0320U-1107245-4/90 Why Choose BlackRock to be your Strategic Partner? • Manage $4.5 trillion in indexed assets, with over $1 trillion on behalf of Global Leader in pension plans. Indexing • Strong track record spanning four decades, demonstrating the ability to manage to a wide range of benchmarks. • Competitive fee arrangement in consideration of our broader partnership. • Ability to provide custom solutions incorporating ESG considerations and an Holistic Partnership emphasis on emerging broker utilization. Approach • Partnership capabilities in related services, including transition management and risk management. • Demonstrated firm level commitment to ESG and Inclusion & Diversity. Shared Values • Emerging Broker program focused on supporting the growth and development of the Emerging Broker ecosystem. • Our robust indexing platform is supported by our unparalleled proprietary Risk Management investment and risk analytics platform, Aladdin. Technology • Investment teams leverage the benefits of our unifying technology and industry leading risk management capabilities to deliver superior indexing. FOR USE WITH STATE OF CONNECTICUT ONLY – PROPRIETARY AND CONFIDENTIAL ICBH0320U-1107245-5/90 5 II. BlackRock Index Investments Overview ICBH0320U-1107245-6/90 BlackRock’s Index proposition Provide you with a broad range of market exposures together with a flexible range of product features An evolving range of products and strategies designed to help meet your Flexibility needs today and in the future Partner with you to address your unique investment challenges through our customisation and solutions capabilities Disciplined investment approach focused on delivering optimal tracking, consistent returns and lowering the total cost of ownership Scale, breadth and diversity of our clients and strategies helps us to Efficiency minimize transaction costs and seek to preserve the value of your investments Design products and strategies that consider the factors that impact your investment results from tax-efficiency to access and liquidity Our investment professionals are focused on delivering performance and efficient outcomes Precision Extensive trading, risk and operational platform positioned to seek efficient tracking as well as enhanced returns Investment track record spanning four decades that has seen investors entrust us with $4.9 trillion of assets under management as of 31 December 2019 Seeking to deliver high quality, cost-effective access to a broad range of market opportunities ICBH0320U-1107245-7/90 FOR USE WITH STATE OF CONNECTICUT ONLY - PROPRIETARY AND CONFIDENTIAL 7 BlackRock’s global index investment platform With $4.9 trillion in indexed assets BlackRock is a global leader in index investing1 Seek to deliver consistent performance with efficient outcomes for our clients Provide clients with access to a broad range of market opportunities Extensive and flexible platform for index strategies Over 2,500 funds managed against 1000+ benchmarks Investment teams in San Francisco, Atlanta, London, Hong Kong and Tokyo Total indexed assets of $4.9 trillion 2019 YTD Distribution of assets by vehicle type in 2019 YTD 6,000 Other Collective 2.2% 5,000 Trust Funds 18.3% 1,340 4,000 1,040 1,093 Exchange 3,000 822 764 702 Traded 644 AUM $bn Funds 2,000 43.8% 3,408 3,514 3,051 2,657 1,000 2,166 2,374 2,370 0 2013 2014 2015 2016 2017 2018 2019 Separate Equity & Commodities Fixed Income Accounts 35.7% Source: BlackRock as of 31 December 2019 1 In terms of AUM. Source: Pensions & Investments ICBH0320U-1107245-8/90 FOR USE WITH STATE OF CONNECTICUT ONLY - PROPRIETARY AND CONFIDENTIAL 8 49 years of experience driving index forward Creating solutions so our clients have access to high quality index exposures Drive the industry forward through our ability to create specialized, innovative investments afforded by our scale and depth of expertise Forge new ground for clients — a history of being first to market with new investment ideas Evolve capabilities to continuously deliver on emerging trends — smart beta, global benchmarking, overlay strategies Serve as an index advocate on behalf of asset owners and act a key partner to index providers seeking our practitioner knowledge 49 years of Index Equity — Continual evolution of products, technology and capabilities BlackRock Index Fixed Income AUM BlackRock Index Equity AUM $4.9T $4T World Equity Triple A: iShares Exchange- Eliminated EAFE Frontier Minimum Volatility Project Vision Index pioneer and Defined Emerging Market Benchmark asset allo catio n Traded Funds dividend flipping Index Plus Markets ETFs innovator contribution Equity Index Shares (WEBS) PM tool capabilities Journey Fundam entally ESG fund series Risk model First Global Credit Managem ent enhancements Screened Smart weighted strategies Passive Long Beta Strategy Duration launched Launch o f Sm art $3T Beta Risk Strategy 1971 $2T First synthetic long duration funds EM Factor ETFs Fund of fund structures Directed Awarded Treasury FX Aladdin Mandate fo r Migration Launch o f Im pact Mo rtgage Market Currency EAFE Equity Daily Bond Strategy First Fixed Income Stabilization T-2 for Hedged Index openings Investment International iShares Russell Index Funds strategy Program for all Analysis: EAFE ETFs $1T ETFs funds Project Northstar index portfolio Small Securities m anagem ent Cap Lending Equity and currency First 401(k) Emerging tool hedging Target D ate Markets First 20+ Fund (LifePath)) Sm all Cap STRIPS Index Fund Launched AUM as of December 31, 2019 ICBH0320U-1107245-9/90 FOR USE WITH STATE OF CONNECTICUT ONLY - PROPRIETARY AND CONFIDENTIAL 9 Investments Pillar ETF and Index Investments Business Salim Ramji Patrick Olson Global Head of iShares and Index Investments Chief Product Officer Investments Pillar Samara Cohen & Alan Mason Global Co-Heads of Investments, Products, and Markets Americas Portfolio Engineering Leadership Americas Portfolio Global CIO Global COO Global Platform Global Research Global Strategy Engineering Rachel Aguirre & Amy Whitelaw Jennifer Hsui Karen Kraut Rajesh Nagella Ananth Madhavan Jessica Irschick Co-Heads of Americas Global Index Equity CIO Global EII Markets & Global Head of EII Investment Global Head of EII Research Global Head of Index Product Portfolio Engineering Investments COO Process & Platform Strategy Business Portfolio Engineering Index Research Platform Research Strategy Management Developed ex-U.S. Emerging U.S. + 9 Index + 4 Business + 5 Platform Engineers + 30 Research Officers Americas Managers Institutional Institutional Institutional Researchers Scott Dohemann, CFA + 6 Portfolio + 6 Portfolio + 5 Portfolio Head o f U.S. Pro duct Strategy Engineers Engineers Engineers Emily Foote, CFA Christian De Leon Developed ex-U.S. Emerging U.S. Jacqueline Ramkumar ETF ETF ETF Drew Pinson + 4 Portfolio + 5 Portfolio + 6 Portfolio Niyati Mohan, CFA Engineers Engineers Engineers Adriel Ramirez Grace Lancaster Index Asset Canada Index Plus Allocation ETF + 4 Portfolio + 6 Portfolio + 4 Portfolio EMEA Engineers + 6 Strategists Engineers Engineers APAC FX & Sub-A dv ised + 3 Strategists Synthetics + 4 Portfolio + 4 Portfolio Engineers Engineers As of 31 December 2019 ICBH0320U-1107245-10/90 FOR USE WITH STATE OF CONNECTICUT ONLY - PROPRIETARY AND CONFIDENTIAL 10 Americas Fixed Income Index Team Americas Fixed Income Portfolio Management Research Strategy Core PM Global Research Americas Scott Radell Robert Stanley Research Group Head of San Francisco Core PM Head of US Product Strategy Rates / Mortgages / Multi-Sector/Other Credit Ignacio Blanch Emerging Markets Head of Systematic Matt Tucker Fixed Income Research Scott Radell Karen Uyehara Jonathan Graves David Dulski Jay Mauro Mark Buell Gordon Readey Head of San Sr. Portfolio Sr. Portfolio Portfolio Deputy Head of Portfolio Manager Francisco Core Manager Manager Manager SF Core PM US Government Research Kathryn Donovan PM Multi-Sector Corporate Credit Corporate Credit Bonds Laura May + 8 Index researchers Jasmita Mohan Joseph Maciunas Christina Hanlon Giulia Cerardi Marcus Tom Yang He Chandler Grinnell Portfolio Manager Portfolio Manager Portfolio Manger Portfolio Manager Portfolio Manager Portfolio Manager Multi-Sector Multi-Sector / Corporate Credit Corporate Credit Agency Agency Mortgages Rates Mortgages Joel Silva Jermaine Pierre Cynthia Fan Jesse Kang Wes George Gabe Shipley Sr. Portfolio Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager Manager Canada Corporate Credit Corporate Credit Agency Emerging