INTERNATIONAL VALUE EQUITY - LADWPretirement.ladwp.com/AgendaItems/20161012 Item 06.pdf · -...

31540.3FOR INSTITUTIONAL USE ONLYMFS Institutional Advisors, Inc.

MFS® INTERNATIONAL VALUE EQUITY

Presented to

Los Angeles Department of Water and Power 12 October 2016

299-I-CT-IV-12Oct16.iiMFS® International Value Equity

Presenters

Camille Humphries Lee, CFA - Investment Officer- Institutional Equity Portfolio Manager- As an Institutional Portfolio Manager, participates in the research process and strategy discussions.

Assesses portfolio risk, customizes portfolios to client objectives and guidelines, and manages daily cashflows. Communicates investment policy, strategy, and positioning.

- Joined MFS in 2000.- Previous experience includes 3 years as Research Analyst at SG Cowen Securities Corporation; 8 years as

Research Analyst and Associate Analyst at Alex Brown.- Affiliations include Boston Security Analysts Society, Inc., CFA Institute- University of Virginia, MBA- University of Virginia, BA

Carolyn Lucey, CIMA - Director, Relationship Management- As a Relationship Manager, responsible for the overall client experience including communicating

portfolio positioning, strategy, and performance attribution and ensuring that our clients' ongoing serviceneeds are met.

- Joined MFS in 1998; previous positions include Investment Director for Private Portfolio Services; VicePresident, Director of Product Management; Assistant Vice President, Domestic Equity Product Manager.

- Previous experience includes 1 year as Product Manager at Van Kampen American Capital; 6 years asProduct Manager at John Hancock Funds; 2 years as Associate at Putnam Investments.

- Affiliations include Investment Management Consultants Association (IMCA)- Manhattanville College, BA

299-I-CT-IV-12Oct16.iiiMFS® International Value Equity

Table of contents Contents Tab

Section A: Company overview 1

Section B: Investment process and discipline 2

Section C: Market overview 3

Section D: Performance review 4

Section E: Portfolio review and characteristics 5

Section F: Fee schedule 6

Section G: Glossary of investment terms 7

COMPANY OVERVIEW

299-I-CT-IV-12Oct16.1MFS® International Value Equity

MFS corporate update

Assets under management (USD) as of August 31, 2016:Total firm AUM: 425 billion USD

Total MFS International Value Equity strategy AUM: 34.2 billion USD

Personnel Changes:On May 3, 2016, MFS announced that Robin Stelmach, MFS' Chief Operating Officer would become a Vice Chairman of MFS at the end of2016. With the added responsibilities of her new role, Robin stepped away from the daily responsibilities of Global Investment & Client Supportat the end of June.

Jeff Estella filled a newly created role as Director of Trading Analytics and Investment Operations with oversight of the Global Investment &Client Support. Jeff previously served as co-Director of Global Equity Trading. Brenda Farley now serves as Director of Global Equity Trading.

Effective July 1, 2016, Ted Maloney was named Global Director of Research. In this role, Ted coordinates efforts across the geographicalregions and sector teams to help maximize the performance of our Global Research platform and analyst-run portfolios. Ted previously servedas Director of Research for North America.

Also effective July 1, 2016, Alison O'Neill took over Ted's prior role as the Director of Research for North America and joined the equitymanagement team. Alison has served as an Equity Research Analyst at MFS since 2005 and continues to serve in that capacity.

1


MFS® overview

We apply a uniquely collaborative approach to build better insights for our clients

Integrated ResearchWe look at investment opportunities across the globe byintegrating fundamental equity, quantitative and creditdisciplines in our analysis.

Global CollaborationOur team philosophy and incentive structure ensure strong collaboration across the firm.

Active Risk ManagementWe take a holistic approach to actively managing risk withreviews in place at security, portfolio and firm levels and aclear focus on generating alpha for our clients.

2


28452.11 ex30APR17

Business profile (USD)425 billion total MFS AUM

Global equities (20%)

EAFE/International equities (21%)

US equities (34%)

Regional equities (7%)

Fixed Income (13%)

Multi-Strategy (5%)

Asia Pacific (35%)

EMEA (23%)

North America (42%)

RegionsInstitutional business by client type and region3

Client types

• Defined benefit/defined contribution

• Endowment and foundation

• Sovereign wealth fund/government agency

• Institutional platform/insurance subadvisory

Well-diversified business across clients, regions, and investment strategies

Diversified client and asset base1

AssetsGlobal equities 85.3 billionEAFE/international equities 89.0 billionUS equities 142.7 billionRegional equities 28.2 billionFixed Income2 57.2 billionMulti-strategy/Other 22.4 billion

Assets

As of 30-Jun-16.1 Data is rounded to the nearest figure. 2 Total fixed income assets, including non-dedicated fixed income mandates are 76.2 billion USD.3 Represents global clients in institutional vehicles only.

3


MFS investment professionals

Our experienced investment team and collaborative culture distinguish our approach to investing

As of 30-Jun-16.Years = average years industry experience.

1 Member of Investment Management Committee.

47 equity portfolio managers

21 years

President, Co-Chief Executive Officer and Chief Investment Officer – Michael Roberge1

Vice Chairman – David Antonelli1

32 fixed income analysts 17 years

61 equity analysts 13 years

10 quantitative analysts 13 years

22 fixed income portfolio managers

25 years

9 quantitative portfolio managers

21 years

Portfolio management(78)

Research team(103)

Trading(31)

Gregory Heller1, Director of Global Fixed Income Trading, Brenda Farley, Director of Global Equity Trading14 equity traders – 17 years

17 fixed income traders – 19 years

Chairman and Co-Chief Executive OfficerRobert Manning1

6 fixed income associates 3 years

20 equity associates 4 years

12 quantitative associates 11 years

Research/investmentassociates

(38)

TOTAL250

4


Mark Garabedian,Transaction Cost Specialist

Robb Mansi, Director of Global Investment and Client Support

Matthew HalperinJohn McAreeJulie O’Dette

Jennifer RoshonMatthew Sweeney

Justin DonohueSteven DonovanChristopher Frier

Trading and Analytics Investment Operations

MFS equity investment professionals

Michael FlintCharles GraulRobert JohnsonMarc Pascal

Alfred SabloneMichael SpallaEric TrachMatt Wilkinson

Jennifer BlanchetteAlan BrownRichard DeveneyClaudio Faiella

President, Co-Chief Executive Officer and Chief Investment Officer – Michael RobergeVice Chairman – David Antonelli

Chief Investment Officer – Global Equity – Kevin BeattyChief Investment Risk Officer, Director of Quantitative Solutions – Joseph Flaherty

Brenda Farley, Director of Equity Trading

Fundamental Research

Molly Frew Genevieve Gilroy Lionel GomezSimon GreshamWard Griffiths Katharine JacksonJude JasonZahid KassamSalman KhanYuko KikuchiTakeyuki KoraBradford Mak Ryan McAllister Stuart McPherson Sandeep MehtaAyako Mikami Colin MooreJohnathan MunkoRaj NairVipin NarulaJames Neale

Mariana AraujoMichael AurelioRyan BallAparna Bedi TannaIan BigneyEric Braz Stephen CampfieldKatherine CannanJeffrey ChoMaile ClarkTim ClarkChristopher CorkThomas Crowley Poojah DaftaryShanti Das-WermesClaud DavisEdward DearingTimothy Dittmer Reinier DobbelmannPhilip EvansDavid Falco

Richard OffenAlison O’Neill MackeyMariana PaixaoHarry PurcellAndrew QuatraleMarco QuizaC.V. RaoMatthew ScholderErica SchulteJames SchusterDeividas SeferisEleanor ShingJoseph Skorski Florence TajJeanine ThomsonScott WalkerStephen WhiteRobert WilsonKevin Wei-Cher Yeoh

QUANTITATIVE Dino DavisJames FallonMatthew KrummellJonathan SageJohn Stocks

Portfolio Management

VALUENevin ChitkaraPablo de la MataAnne-Christine FarstadRick GableSteven Gorham Camille Humphries LeeKatrina MeadJeffrey MorrisonKevin SchmitzMaura ShaughnessyDavid ShindlerBenjamin StoneBrooks TaylorBarnaby Wiener

COREKevin BeattyFilipe BenzinhoGabrielle GourgeyVictoria HigleyChristopher JenningsBen KottlerDaniel LingJoseph MacDougallEdward MaloneyDavid MannheimRoger MorleySanjay NatarajanMarcus Smith Chris Sunderland

GROWTHRobert AlmeidaDavid AntonelliMatthew BarrettAndrew BoydJeffrey ConstantinoKevin DwanEric FischmanBrett FleishmanPeter FruzzettiJose Luis GarciaPaul GordonMichael GrossmanJamie KeatingRobert LauThomas MelendezDimi NtantoulisMatthew SabelNicole Zatlyn

Bradley Zancanaro

Quantitative Research

Mark CitroNoah RumpfShruthi SaralayaMichael TataBhushan VartakJenney Zhang

Jeffrey Estella, Director of Trading Analytics and Investment Operations

Trading and Risk Analytics

As of 13-Sep-16.

5

Benjamin Stone, IIMRPortfolio Manager

20 years industry experience

Camille Lee, CFAInstitutional Portfolio Manager


Pablo de la Mata, CFAPortfolio Manager


Experienced MFS International Value Equity team

Experienced management, tested by markets, backed by depth

Nevin ChitkaraPortfolio Manager


Steven Gorham, CFAPortfolio Manager


Kate Mead, CFAInstitutional Portfolio Manager


Additional resources

Barnaby WienerPortfolio Manager


John Mahoney, CFAInvestment Product Specialist



6

MFS International Value Equity team

23SEP16

Benjamin Stone, IIMR - Investment Officer- Equity Portfolio Manager- As an Equity Portfolio Manager, responsible for buy and sell decisions, portfolio construction, risk control

and cash management. Participates in the research process and strategy discussions.- Joined MFS in 2005; previous positions include Equity Research Analyst.- Previous experience includes 9 years as Research Analyst at Schroders Investment Management.- Affiliations include Institute of Investment Management and Research- Durham University, BA, 2:1

Pablo de la Mata, CFA - Investment Officer- Equity Portfolio Manager, Equity Research Analyst- As a Non-U.S. Equity Portfolio Manager, responsible for final buy and sell decisions, portfolio construction,

risk and cash management. Participates in the research process and strategy discussions.- Joined MFS in 2008.- Previous experience includes 1 year as Equity Research Analyst at Magnetar Capital; 3 years as Equity

Research Analyst at Blackrock/Merrill Lynch Investment Managers; 1 year as Wholesale Support at MerrillLynch Investment Managers.

- Affiliations include CFA Institute- Colegio Universitario de Estudios Financieros (CUNEF), BS

Camille Humphries Lee, CFA - Investment Officer- Institutional Equity Portfolio Manager- As an Institutional Portfolio Manager, participates in the research process and strategy discussions.


- Joined MFS in 2000.- Previous experience includes 3 years as Research Analyst at SG Cowen Securities Corporation; 8 years as

Research Analyst and Associate Analyst at Alex Brown.- Affiliations include Boston Security Analysts Society, Inc., CFA Institute- University of Virginia, MBA- University of Virginia, BA


7


MFS International Value Equity team additional resources

Nevin P. Chitkara - Investment Officer- Equity Portfolio Manager- As a Value Equity Portfolio Manager, responsible for final buy and sell decisions, portfolio construction,

risk and cash management. Participates in the research process and strategy discussions.- Joined MFS in 1997; previous positions include Equity Research Analyst.- Previous experience includes 5 years as Analyst, Acquisition Associate and Manager at General

Electric Company.- Massachusetts Institute of Technology, MBA- Boston University, BS, magna cum laude

Steven R. Gorham, CFA - Investment Officer- Director of Equity - North America, Equity Portfolio Manager- Serves on Global Equity Management Team- As a Value Equity Portfolio Manager, responsible for final buy and sell decisions, portfolio construction,

risk and cash management. Participates in the research process and strategy discussions.- Joined MFS in 1989; previous positions include Equity Research Analyst; Marketing Representative;

Teleservices Representative.- Affiliations include Boston Security Analysts Society, Inc., CFA Institute- Boston College, MBA- University of New Hampshire, BS

8


MFS International Value Equity team additional resources (continued)

Barnaby Wiener - Investment Officer- Portfolio Manager- Serves on Global Equity Management Team- As an Equity Portfolio Manager, responsible for buy and sell decisions, portfolio construction, risk control

and cash management. Participates in the research process and strategy discussions.- Joined MFS in 1998; previous positions include Equity Research Analyst.- Previous experience includes 2 years as Vice President & Equity Analyst at Merrill Lynch; 2 years as Equity

Research Analyst at Credit Lyonnais.- Served five years in the British Army reaching the rank of Captain- Royal Military College, Sandhurst, Graduate Course- Oxford University, MA, upper 2nd class history degree

Kate Mead, CFA - Investment Officer- Institutional Equity Portfolio Manager- As an Institutional Portfolio Manager, participates in the research process and strategy discussions.


- Joined MFS in 1997; previous positions include Equity Research Analyst.- Previous experience includes 2 years as Financial Analyst - Real Estate Advisory Services at Coopers &

Lybrand, Financial Advisory Services.- Affiliations include Boston Security Analysts Society, Inc., CFA Institute- University of Pennsylvania, MBA- Villanova University, BS, magna cum laude

John W. Mahoney, CFA - Associate Director, Investment Products- Joined MFS in 2005; previous positions include Investment Product Analyst; Client Report Specialist;

Asset Control Specialist.- FINRA License: Series 7 & 63- Affiliations include Boston Security Analysts Society, Inc., CFA Institute- Bentley University, BS, Financial Management Association National Honors Society

9


Commitment to world class client service results in enduring relationships

Representative MFS institutional client list1Serving over 800 institutional clients globally

Public funds • Andra AP-Fonden• Bureau of Labor Funds, Taiwan• Canada Post Corporation, Canada• City of Phoenix• County of Los Angeles• Government Pension Fund, Thailand• Kapitalforeningen Lærernes Pension Invest, Denmark• Federation of National Public Service Workers Personnel

Mutual Aid Associations, Japan• Government Pension Investment Fund of Japan• London Pensions Fund Authority• Kapitalforeningen LD• LSR, The Pension Fund for State Employees in Iceland• Nebraska Investment Council• Parliamentary Contributory Pension Fund

1 As of 30-Jun-16. This does not represent a complete list of MFS’ institutional clients. The selection of clients represents a sampling of those who have agreed to the use of their names. It is not known whether the listed clients approve or disapprove of MFS Institutional Advisors Inc. or the advisory service provided. The criteria used to include the above listed clients are a mix of

investment style, type of client, and other considerations.

Corporate• American Airlines• Bristol-Myers Squibb• CenturyLink• Chrysler• Google• Manulife Financial, Canada• Mitsubishi Electric Pension Fund• Nestle• Panasonic Pension Fund, Japan• PepsiCo Inc• Robert Bosch GmbH• Telstra Super, Australia• Toyota Motor Corporation, Japan

Sub-advised accounts• GuideStone Capital Management• NTUC Income Insurance, Singapore• Russell Investment Group• ANZ New Zealand Investments

Non-profit & other• Archdiocese of New York• Children’s Hospital of Pittsburgh• Construction and Building Industry

SuperannuationFund, Australia

• Furman University• National Gallery of Art• North Shore Long Island Jewish Health System• Oregon and Southwest Washington Painters• Providence College• REST Industry Super, Australia• Saskatchewan Healthcare Employees' Pension

Plan, Canada• Texas A&M Foundation• Trinity University• UFCW Tri-State Pension• Unipension• University of British Columbia, Canada• University of Western Ontario, Canada

30848.6

10


Key contacts

Carolyn Lucey, CIMA Director Relationship Manager

Office phone: 617.954.5980 Cell phone: 978.807.8589 Fax: 617.210.8814 Email: [email protected]

Chris RooneyClient Service Manager Phone: 617.954.6574 Email: [email protected]

Mailing AddressMFS Investment Management 111 Huntington Avenue, 23rd Floor Boston, MA 02199

11

INVESTMENT PROCESS AND DISCIPLINE


What makes us different from other international value managers?

Integrated global research platform• Collaborative culture critical to process• Combines equity, fixed-income, and quantitative analysis

Disciplined, consistent strategy• Seeks sustainable returns in various market environments• Assess investment opportunities in context of 3 to 5 year time horizon

Rigorous valuation discipline• Patient, contrarian approach• Focus on downside risk management

Distinguishing characteristics

Integrated approach to analyzing value and evaluating risk

13


GoalPer investment guidelines, on an annual basis MFS is expected to outperform the MSCI World ex U.S. IMI Nd Index, net of fees, to be measured over a market cycle of three-to-five years. The reference style for MFS is the MSCI World Value ex U.S. IMI ND Index.

Strategy

Invest rather than speculateMost market participants speculate on near-term information and over-react to short-term newsflow. • We invest on a 3 to 5 year time horizon. Our global research platform, collaborative investment

approach and compensation structure are all aligned with this timeframe.

Analyze rather than forecastMost market participants attach too much weight to forecasts, which often prove inaccurate, particularlyat inflection points.• Typically, we seek an analytical advantage by evaluating the long-term quality, sustainability,

improvement potential and intrinsic value of businesses.

Focus on downside riskMost market participants overemphasize upside potential vs. downside risk.• We manage capital with the goal of avoiding stocks with substantial downside risk, and only invest

where valuations more than compensate for inherent risks.

Investment approach

Leverage long-term analysis to exploit market inefficiencies

14

Investment process overview

Portfolio constructionStock analysisIdea generation MFS® International Value Equity

Invest rather than speculate Focus on downside risk

Research analysts

Portfolio managers

Attractive valuation

Risk/return

Risk review

Analyze rather than forecast

Evaluate quality

Determine appropriate valuation

Assess improvement potential

More than 1,000 non-U.S. stocks ratedby analyst team

350 to 450 non-U.S. buy candidates

150 to 200 stocks that fit investment approach

Quantitative analysis

Besthigh-quality value ideas

80 to 100 holdings

Rigorous analysis of business, risk and valuation


15


Idea generation: Invest rather than speculate

BOSTONTORONTO

MEXICO CITY

SÃO PAULO

SYDNEY

SINGAPORE

HONG KONG

TOKYO

LONDON

93 research analysts27 U.S. equity; 34 non-U.S. equity; 32 fixed-income; backed by 26 research/investment associates

8 global sector teamsorganized by region and sectors; cross-bordercollaboration

11 analyst-managedstrategiesUSD 38.2 billion inassets undermanagement

78 portfolio managerswith significant industryexperience in value,core, growth, and fixedincome

Quantitative screens10 quantitative analystsprovide proprietaryresearch models, stockrankings, and scenariotesting; backed by 12quantitative researchassociates

Global collaboration and integration provide competitive advantages

As of 30-Jun-16.

16


Assess durability of returns and intrinsic value

Stock analysis: Analyze rather than forecast

Intrinsicvalue

Evaluatequality

Determineappropriatevaluation

Assessimprovement

potential

• Changes in supply/demand• Relative profitability and restructuring

potential• Analysis of change in management

• Examine a broad range of approaches• Assess value relative to history, peers,

market

• Sustainability of business model• Industry growth rate, cyclicality and risk• Management strength and capital allocation

17


Portfolio construction: Focus on downside risk

Entry points

• Negative short-term event• Underappreciated duration of returns• Unrecognized improvement potential

Exit points

• Expensive valuation• Fundamentals change• Attractive alternatives

Portfolio construction

• Attractive valuation• Determine position size by conviction and liquidity• Manage and evaluate risk and return

- Security level and systemic risk assessment

Seeks to invest where we believe valuations more than compensate for inherent risks

• Senior management semiannual risk review:portfolio vs. objectives

• Typical portfolio exposure has been:- Position size < 5% of portfolio at purchase- Industry weighting < 25% of portfolio- Emerging markets < 15% of portfolio

18


Portfolio guidelines1. The portfolio shall be composed of cash equivalents and equity securities of companies doing business outside the United States (as defined using MSCI

classification of issuer or issue) with minimum market capitalizations of $200 million. Equity securities shall be restricted to those issues listed on the majorlocal-country stock exchanges. The markets that MFS can invest in are those within the following indices:a. Morgan Stanley-Capital World ex-U.S. Value Investable Market Index ND (MSCI World ex-U.S. Value IMI ND)b. Morgan Stanley-Capital World ex-U.S. Equity Investable Market Index ND (MSCI World ex-U.S. Equity IMI ND)

2. SEC Rule 144A international equity instruments with registration rights are fully permissible. Those instruments without registration rights must not exceed 10%of the lesser of cost or market value of any single international equity portfolio.

3. American Depository Receipts (ADRs) are permissible up to 2.5% of the total portfolio. Investing in Emerging Markets is prohibited. Emerging markets shall bedefined as those countries included in the MSCI Emerging Markets Investable Market Index ND.

4. In order to minimize transaction costs and market impact associated with country reclassification, and as MSCI reclassifies specific countries from one market toanother (such as from emerging to developed or frontier to emerging), MFS, with advance notification to the Retirement Plan Manager, may invest in suchcountries, subsequent to the announcement of MSCI’s formal reclassification and prior to its effective date.

5. MFS shall not use (non-currency) derivatives within the portfolio without the expressed written consent of the Plan. If MFS elects to use derivatives as part of itsinvestment strategy, the Plan requires that MFS document the rationale for using such instruments. MFS shall not invest in letter or restricted stock, nakedoptions or future contracts, and uncovered short positions or commodities. Use of any derivative instrument for speculation is prohibited.

6. Currency hedging up to a maximum of 25% of the portfolio (notional) is permitted for defensive purposes. Currency hedging shall be effected through the use offorward currency contracts and put and call options.

7. For prudent diversification the portfolio shall have a minimum of 30 issues quoted in at least 10 stock markets, although assets will not be specifically allocatedto individual countries or markets. No more than 5% of the portfolio at the lesser of cost or market value shall be invested in any one issue. In addition, no issueshall be purchased in the Portfolio if more than 15% of the outstanding shares of that company are held by the Manager in the total of all of its accounts.

8. The cash equivalent portion should not normally exceed 15% of the portfolio. Cash equivalents may be U.S. dollar or non-U.S. dollar denominated.

LADWP’s investment guidelines

Note: This section is only intended to serve as a summary of the client’s investment guidelines.Please consult the current investment management agreement for complete investment guidelines.

19

MARKET OVERVIEW


Unusually easy monetary policy remains in place globally, a continued tailwind for risk assets. The US Federal Reserve is the outlier, but isexpected to tighten policy very gradually. Both global fiscal and monetary policy have proven looser than many observers had expected at thebeginning of 2016. The aftermath of the United Kingdom's Brexit vote has not increased uncertainty to the extent many had expected, but the unsettled traderelationship between the UK and European Union will likely result in delayed investment decisions among businesses until the relationshipbecomes clearer over the next two-plus years. While the broad trade-weighted US dollar basket has not moved materially in recent months, there have been large moves among severalcomponents, most notably the yen and British pound. Yen strength has dampened the earnings outlook for Japan exporters while the slump inthe pound has partially offset the shock from Brexit.

Market overviewAs of 31 August 2016

The views expressed in this presentation are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendation, or as an indication oftrading intent on behalf of any other MFS investment product.

21

PERFORMANCE REVIEW


Compliance with LADWP’s investment guidelinesAs of 31 August 2016

Yes No

All companies doing business outside the United States ✔Minimum market cap of $200 million ✔Equity securities listed on the major local-country stock exchanges ✔Emerging markets prohibited ✔Minimum of 30 issues quoted in at least 10 stock markets ✔No more than 5% of the portfolio invested in any one issue ✔No issue purchased if more than 15% of the outstanding shares of that company are held by the Mgr in total of all accounts managed. ✔Cash equivalent portion should not normally exceed 15% of the portfolio. ✔

Note: This section is only intended to serve as a summary of the client’s investment guidelines.Please consult the current investment management agreement for complete investment guidelines.

23


Pacificex Japan

EmergingMarkets

UnitedStates

Canada Japan Europeex U.K.

U.K.

12.7 11.8 11.27.9

2.9

-2.8 -4.0

Mater

ials

Cons

umer

St

aples

Indus

trials

Ener

gy

Utilit

ies

Infor

matio

n Te

chno

logy

Cons

umer

Di

scre

tiona

ry

Telec

ommu

nicati

on

Servi

ces

Healt

h Car

e

Fina

ncial

s

8.111.8

7.912.8

5.38.0

3.9 5.80.9 1.9

-0.1

11.1

-1.5 -1.4-3.2 -1.4-3.8

-7.4 -5.7 -5.2

MSCI World ex US Value IMI MSCI World ex US IMI

Region performance (%)1, 1 year as of 31-Aug-16 Sector performance (%) 1 year as of 31-Aug-16

Market and portfolio overview

Portfolio Value (Employees’ Retirement, Disability & Death Benefit Plan)Initial Value as of 31-Aug-15 $513,830,771Contributions +22,212Withdrawals –47,403,494Change in Market Value +43,192,331Market Value as of 31-Aug-16 $509,641,820Portfolio Value (Retiree Health Benefits Fund)Beginning value as of 31-Aug-15 $85,923,415Contributions +3,741Withdrawals –7,423,888Change in market value +7,243,697Ending value as of 31-Aug-16 $85,746,964

Portfolio performance (%), net of fees, as of 31-Aug-16

1 Year

9.1 9.0

-1.3

1.3

Employees' Retirement, Disability and Death Benefit Plan

Retiree Health Benefits Fund

MSCI World ex US Value IMI

MSCI World ex US IMI

1 Source: FactSet. Region performance based on MSCI regional/country indexes.2 Source: Estimates based on FactSet Research Systems, Inc. Portfolio Analysts Application.

The analysis of MSCI World ex US Value IMI and MSCI World ex US constituents are brokenout by GICS Sectors.

24


Historically consistent performance in diverse markets (USD)

1 MSCI World ex US Value IMI with net dividends reinvested. Source: benchmark performance from SPAR, FactSet Research Systems Inc. Based on quarterly returns in USD.

MFS International Value composite (gross of fees) vs MSCI World ex US Value IMI1, October 2003 – June 2016

Downside risk management, upside participation

Market return less than -5%

Market return -5% to 5%

Market return greater than 5%

Total0

5

10

15

20

25

30

35

Numb

er of

quar

ters a

bove

/below

benc

hmar

k Number of outperforming quarters

Number of underperforming quarters

Average quarterly +4.9% +1.7% -1.4% +1.3%relative performance

25


Historically consistent performance in diverse markets (USD)

1 MSCI World ex US IMI with net dividends reinvested. Source: benchmark performance from SPAR, FactSet Research Systems Inc. Based on quarterly returns in USD.

MFS International Value composite (gross of fees) vs MSCI World ex US IMI1, October 2003 – June 2016

Downside risk management, upside participation

Market return less than -5%

Market return -5% to 5%

Market return greater than 5%

Total0

5

10

15

20

25

30

35

Numb

er of

quar

ters a

bove

/below

benc

hmar

k Number of outperforming quarters

Number of underperforming quarters

Average quarterly +4.5% +1.2% -0.7% +1.2%relative performance

26


Employees’ Retirement, Disability & Death Benefit PlanPerformance overview

Excess returns (%) vs.MSCI World ex US Value IMI 3.3 10.4 11.6 7.7 6.3MSCI World ex US IMI 3.3 7.8 8.5 6.0 5.4

YTD 1 Year 2 Years 3 Years Since inception(6-Jul-12)

5.52.2 2.2

9.1

-1.3

1.34.6

-7.0-3.9

8.7

1.0 2.7

12.2

5.9 6.8

Portfolio (net)



Cumulative returns (%), as of 31-Aug-16

Annual performance (%), as of 31-Aug-16 YTD 2015 2014 2013 Portfolio (net) 5.5 6.8 0.9 30.9 MSCI World (ex-US) Investable Market Index Value (net div)Excess returnMSCI World (ex-US) Investable Market Index (net div)Excess return

2.2 -6.6 -5.5 22.2 3.3 13.4 6.4 8.7 2.2 -2.0 -4.5 21.6 3.3 8.8 5.4 9.3

27


Retiree Health Benefits Fund Performance overview

Excess returns (%) vs.MSCI World ex US Value IMI 3.2 10.3 11.6 7.7 6.3MSCI World ex US IMI 3.2 7.7 8.5 6.0 5.4

YTD 1 Year 2 Years 3 Years Since inception(6-Jul-12)

5.42.2 2.2

9.1

-1.3

1.34.6

-7.0-3.9

8.7

1.0 2.7

12.2

5.9 6.8

Portfolio (net)



Cumulative returns (%), as of 31-Aug-16

Annual performance (%), as of 31-Aug-16 YTD 2015 2014 2013Portfolio (net) 5.4 6.8 0.9 30.9MSCI World (ex-US) Investable Market Index Value (net div) 2.2 -6.6 -5.5 22.2Excess return 3.2 13.4 6.4 8.7MSCI World (ex-US) Investable Market Index (net div) 2.2 -2.0 -4.5 21.6 Excess return 3.2 8.8 5.4 9.3

28


MFS International Value Equity CompositePerformance – gross of fees (USD)

Annualized returns (%), as of 31-Aug-16

Annual performance (%), as of 31-Aug-16 YTD 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

MFS International Value Equity CompositeMSCI World (ex-US) Investable Market Index Value (net div)MSCI World (ex-US) Investable Market Index (net div)

2.3

13.110.4

12.1

7.7

-2.1 -1.3

1.0

4.0

1.0

-1.1

1.32.7

4.72.0

2Q16 1 Year 3 Years 5 Years 10 YearsExcess return (%) vs.MSCI World (ex-US) Investable Market Index Value (net div) 4.4 14.4 9.4 8.1 6.7MSCI World (ex-US) Investable Market Index (net div) 3.4 11.8 7.7 7.4 5.7

MFS International Value Equity Composite 9.0 7.5 2.3 29.0 17.2 -0.7 10.6 26.5 -30.9 8.8 30.3 MSCI World (ex-US) Investable Market Index Value (net div) 2.2 -6.6 -5.5 22.2 17.6 -12.3 6.6 38.3 -44.4 6.1 28.8 Excess return 6.8 14.1 7.8 6.8 -0.4 11.6 4.0 -11.8 13.5 2.7 1.5MSCI World (ex-US) Investable Market Index (net div) 2.2 -2.0 -4.5 21.6 16.5 -12.7 10.7 35.3 -44.0 11.7 25.6 Excess return 6.8 9.5 6.8 7.4 0.7 12.0 -0.1 -8.8 13.1 -2.9 4.7

Please see performance methodology and composite report in appendix for net of fee performance and other information. Source for benchmark performance: SPAR, FactSet Research Systems Inc. Past performance is no guarantee of future results.

29

MFS International Value Equity Composite (USD)Peer Universe Rankings as of 30 June 2016

Upside market Downside

market

capture 2,3,4 capture 2,3,4

1 year 3 years 5 years 10 years 5 years 10 years 10 years 10 years

6.3 9.7 10.1 7.7 1.31 1.00 93 55

3 2 1 3 8 4 79 1

-13.3 0.4 0.3 0.8 -- -- -- --

84 88 88 90 -- -- -- --

1 Based on monthly returns. 2 Based on quarterly returns.3 Relative to the MSCI World ex USA IMI Value Index.4

5

6 MSCI World ex USA IMI Value Index with net dividends reinvested.

Annualized returns Information ratio 1,3

(gross of fees)

Please see attached GIPS report for additional performance information.

MFS International Value Equity

MFS Percentile Rank5

MSCI World ex USA IMI Value Index6

Index Percentile Rank5

The upside market capture ratio is calculated by dividing the return of the portfolio during the up market periods by the return of the market during the same periods. The downside market capture ratio is calculated by dividing the return of the portfolio during the down market periods by the return of the market during the same periods. The MFS percentile rank for downside market capture has been adjusted to show the ranking in ascending order.

Rankings are vs. the eVestment EAFE Value Equity universe. The number of observations for the eVestment EAFE Value Equity: 116 (1 year); 107 (3 years); 101 (5 years); 86 (10 years). Compiled on 12 September 2016 with 97.5 % of firms reporting.

299-I-CT-IV-12Oct16.31MFS® International Value Equity28466.17

30

MFS International Value Equity Composite (USD)Peer Universe Rankings as of 30 June 2016

Upside market Downside

market

capture 2,3,4 capture 2,3,4

1 year 3 years 5 years 10 years 5 years 10 years 10 years 10 years

6.3 9.7 10.1 7.7 1.35 0.99 94 59

3 2 1 3 5 1 77 1

-9.0 2.5 1.5 1.9 -- -- -- --

47 55 69 68 -- -- -- --

1 Based on monthly returns. 2 Based on quarterly returns.3 Relative to the MSCI World ex USA IMI Index.5

8

6 MSCI World ex USA IMI Index with net dividends reinvested.

Annualized returns Information ratio 1,3

(gross of fees)

Please see attached GIPS report for additional performance information.

MFS International Value Equity

MFS Percentile Rank8

MSCI World ex USA IMI Index

Index Percentile Rank8

The upside market capture ratio is calculated by dividing the return of the portfolio during the up market periods by the return of the market during the same periods. The downside market capture ratio is calculated by dividing the return of the portfolio during the down market periods by the return of the market during the same periods. The MFS percentile rank for downside market capture has been adjusted to show the ranking in ascending order.

Rankings are vs. the eVestment EAFE Value Equity universe. The number of observations for the eVestment EAFE Value Equity: 116 (1 year); 107 (3 years); 101 (8 years); - 6 (10 years). Compiled on 12 September 2016 with 97.8 % of firms reporting.

299-I-CT-IV-12Oct16.32MFS® International Value Equity28466.17

31


Performance drivers – regionsRelative to MSCI World ex US Value IMI Index (USD) – one year as of 31 August 2016

Attribution results are generated by the FactSet application utilizing a methodology which is widely accepted in the investment industry. Results are based upon daily holdings using a buy and holdmethodology to generate individual security returns and do not include expenses. As such, attribution results are essentially estimates and may not aggregate to the total return of the portfolio or ofthe benchmark which can be found elsewhere in this presentation.

Average relative Portfolio Benchmark Sector Stock Currency Relative weighting (%) returns (%) returns (%) allocation (%) + selection (%) + effect (%) = contribution (%)

Contributors Europe Ex-U.K. 9.1 9.6 -5.1 -0.3 7.0 -0.2 6.6United Kingdom -2.0 8.2 -6.8 -0.3 3.0 0.3 3.0Japan 2.7 8.4 2.1 -0.3 1.6 0.5 1.9Developed - Middle East/Africa -0.7 – -6.7 0.1 – -0.0 0.1Currency Options – – – – – – –

Detractors North America -6.4 25.6 15.6 -0.9 0.1 -0.1 -0.9Asia/Pacific Ex-Japan -6.1 26.0 10.1 -0.4 0.5 -0.2 -0.1Cash 3.4 0.2 – -0.1 – -0.0 -0.1Emerging Markets -0.0 – 40.4 -0.0 – 0.0 -0.0

Total 9.8 -0.7 -2.2 12.2 0.4 10.4

34747.2 ex1DEC16

32


Performance drivers – countryRelative to MSCI World ex US Value IMI Index (USD) – one year as of 31 August 2016

Average relative Sector Stock Currency Relative weighting (%) selection (%) + selection (%) + effect (%) = contribution (%)

Contributors United Kingdom -2.0 -0.2 3.0 0.3 3.0Germany 5.4 0.1 2.9 -0.1 3.0France -0.2 -0.0 1.9 0.0 1.9Japan 2.7 -0.3 1.6 0.5 1.9Switzerland 7.7 -0.4 1.9 -0.1 1.4Spain -1.8 0.3 0.5 0.0 0.9Italy -2.5 0.4 -0.1 0.0 0.3Australia -2.1 -0.1 0.5 -0.1 0.3Netherlands 2.2 -0.1 0.4 -0.0 0.2Israel -0.7 0.1 – -0.0 0.1Portugal -0.2 0.0 – 0.0 0.0China -0.0 -0.0 – 0.0 0.0United States -0.0 -0.0 – 0.0 0.0

Detractors Canada -6.4 -0.9 0.1 -0.1 -0.9Sweden 0.1 -0.0 -0.4 0.0 -0.4Hong Kong -2.5 -0.3 -0.0 0.0 -0.3Ireland 0.4 -0.1 -0.1 0.0 -0.2Norway 0.1 -0.0 -0.2 0.0 -0.2Finland -1.2 -0.2 -0.0 0.0 -0.2Denmark 0.4 -0.1 -0.1 -0.0 -0.1New Zealand -0.3 -0.1 – -0.0 -0.1Cash 3.4 -0.1 – -0.0 -0.1Belgium -0.9 -0.1 – 0.0 -0.1Singapore -1.3 0.0 – -0.0 -0.0Austria -0.4 -0.0 – 0.0 -0.0Taiwan -0.0 -0.0 – 0.0 -0.0

Total -2.0 12.0 0.4 10.4


33


Performance drivers – sectorsRelative to MSCI World ex US Value IMI Index (USD) – one year as of 31 August 2016

34747.2 ex1DEC16

Average relative Portfolio Benchmark Region Stock Currency Relative weighting (%) returns (%) returns (%) selection (%) + selection (%) + effect (%) = contribution (%)

Contributors Consumer Staples 25.2 16.4 7.9 3.0 1.3 0.1 4.4Financials -18.9 0.5 -5.7 1.2 1.3 -0.1 2.4Industrials 5.0 18.7 5.3 0.3 2.5 -0.6 2.1Consumer Discretionary -5.0 13.5 -1.5 0.4 1.3 -0.9 0.9Information Technology 8.7 6.3 -0.1 -0.8 1.6 0.0 0.8Telecommunication Services -0.5 8.2 -3.2 0.0 0.1 0.4 0.6Health Care 0.1 -4.8 -3.8 0.0 -0.6 0.7 0.1Currency Options – – – – – – –

Detractors Energy -8.4 -7.8 3.9 -1.1 -0.2 0.7 -0.6Cash 3.4 0.2 – -0.1 – -0.0 -0.1Utilities -5.8 – 0.9 -0.2 – 0.2 -0.1Materials -3.9 22.6 8.1 -0.3 0.3 -0.0 -0.0

Total 9.8 -0.7 2.4 7.6 0.4 10.4


34


Average weighting Returns RelativePortfolio (%) Benchmark (%) Portfolio (%)1 Benchmark (%) contribution (%)

Contributors Groupe Danone SA 4.1 – 25.5 – 1.0Brambles Ltd 3.1 – 36.2 – 0.9Henkel KGaA 2.5 – 27.2 – 0.7Deutsche Wohnen Ag 1.5 – 45.5 – 0.6KDDI Corp 3.0 0.2 20.7 20.1 0.6

Detractors Cobham Plc 0.9 0.0 -39.6 -39.1 -0.4Bayer 1.5 – -19.2 – -0.3Siemens AG – 1.1 – 25.0 -0.3Ericsson Lm 1.7 0.3 -23.4 -23.5 -0.3Bank Of Ireland 0.4 0.0 -43.4 -26.2 -0.2

Performance drivers – stocksRelative to MSCI World ex US Value IMI Index (USD) – one year as of 31 August 2016

1 Represents performance for the time period stock was held in portfolio. Attribution results are generated by the FactSet application utilizing a methodology which is widely accepted in the investment industry. Results are based upon daily holdings using a buy and holdmethodology to generate individual security returns and do not include expenses. As such, attribution results are essentially estimates and may not aggregate to the total return of the portfolio or ofthe benchmark which can be found elsewhere in this presentation.

35


Performance drivers – regionsRelative to MSCI World ex US IMI Index (USD) – one year as of 31 August 2016



Contributors Europe Ex-U.K. 6.1 9.6 -1.0 -0.1 5.0 -0.1 4.9United Kingdom 0.6 8.2 -4.6 0.0 2.6 -0.2 2.4Japan 2.8 8.4 4.2 -0.3 1.1 0.5 1.3Developed - Middle East/Africa -0.7 -- -7.5 0.1 -- -0.0 0.1Currency Options -- -- -- -- -- -- --

Detractors Asia/Pacific Ex-Japan -6.1 26.0 13.8 -0.5 0.4 -0.1 -0.3North America -6.1 25.6 10.0 -0.5 0.2 -0.1 -0.3Cash 3.4 0.2 -- -0.1 -- -0.0 -0.1Emerging Markets -0.0 -- 40.1 -0.0 -- 0.0 -0.0

Total 9.8 1.8 -1.4 9.3 0.1 7.9

34747.2 ex1DEC16

36


Performance drivers – countryRelative to MSCI World ex US IMI Index (USD) – one year as of 31 August 2016

Average relative Sector Stock Currency Relative weighting (%) selection (%) + selection (%) + effect (%) = contribution (%)

Contributors Germany 4.8 0.2 2.3 -0.1 2.5United Kingdom 0.6 0.0 2.6 -0.2 2.4France 1.1 -0.0 1.6 0.0 1.6Japan 2.8 -0.3 1.1 0.5 1.3Switzerland 5.1 -0.1 1.4 -0.1 1.2Spain -1.1 0.2 0.4 0.0 0.6Italy -2.1 0.5 -0.1 0.0 0.4Australia -2.1 -0.2 0.4 -0.1 0.1Israel -0.7 0.1 -- -0.0 0.1Portugal -0.2 -0.0 -- 0.0 0.0China -0.0 -0.0 -- 0.0 0.0

Detractors Sweden -0.2 -0.0 -0.5 0.0 -0.5Canada -6.1 -0.4 0.2 -0.1 -0.3Ireland 0.1 -0.0 -0.2 0.0 -0.2Denmark -0.7 0.0 -0.3 0.0 -0.2Hong Kong -2.4 -0.2 -0.0 0.0 -0.2Norway 0.5 0.0 -0.2 0.0 -0.2Cash 3.4 -0.1 -- -0.0 -0.1New Zealand -0.3 -0.1 -- -0.0 -0.1Belgium -1.3 -0.1 -- 0.0 -0.1Finland -0.9 -0.1 -0.0 0.0 -0.1Singapore -1.3 -0.0 -- -0.0 -0.0Netherlands 1.2 0.1 -0.1 -0.0 -0.0Austria -0.2 -0.0 -- 0.0 -0.0United States -0.0 -0.0 -- 0.0 -0.0Taiwan -0.0 -0.0 -- 0.0 -0.0

Total -0.7 8.6 0.1 7.9


37

299-I-CT-IV-12Oct16.39MFS® International Value Equity 34747.2 ex1DEC16


Performance drivers – sectorsRelative to MSCI World ex US IMI Index (USD) – one year as of 31 August 2016


Contributors Consumer Staples 17.9 16.4 12.8 2.5 0.3 0.2 3.0Industrials 2.7 18.7 8.0 0.1 2.2 -0.7 1.7Financials -6.7 0.5 -5.2 0.5 1.2 -0.1 1.6Consumer Discretionary -7.8 13.5 -1.4 0.5 1.1 -0.6 1.0Health Care -3.9 -4.8 -7.4 0.3 -0.1 0.5 0.7Telecommunication Services 0.0 8.2 -1.4 0.0 0.1 0.4 0.5Information Technology 6.1 6.3 11.1 0.3 -0.4 0.1 0.0Utilities -3.4 .– 1.9 -0.1 .– 0.1 0.0Currency Options .– .– .– .– .– .– .–

Detractors Energy -5.1 -7.8 5.8 -0.6 -0.2 0.4 -0.4Cash 3.4 0.2 .– -0.1 .– -0.0 -0.1Materials -3.3 22.6 11.8 -0.3 0.3 -0.1 -0.1

Total 9.8 1.8 3.3 4.6 0.1 7.9

38


1 Represents performance for the time period stock was held in portfolio. Attribution results are generated by the FactSet application utilizing a methodology which is widely accepted in the investment industry. Results are based upon daily holdings using a buy and holdmethodology to generate individual security returns and do not include expenses. As such, attribution results are essentially estimates and may not aggregate to the total return of the portfolio or ofthe benchmark which can be found elsewhere in this presentation.

Performance drivers – stocksRelative to MSCI World ex US IMI Index (USD) – one year as of 31 August 2016

Average Weighting Returns RelativePortfolio (%) Benchmark (%) Portfolio (%)1 Benchmark (%) contribution (%)

Contributors Brambles Ltd 3.1 0.1 36.2 36.2 0.9Groupe Danone SA 4.1 0.3 25.5 25.5 0.8Deutsche Wohnen Ag 1.5 0.1 45.5 45.5 0.6Henkel KGaA 2.5 0.2 27.2 26.2 0.6KDDI Corp 3.0 0.3 20.7 20.7 0.5

Detractors Cobham Plc 0.9 0.0 -39.6 -39.1 -0.5Ericsson Lm 1.7 0.2 -23.4 -23.4 -0.4Bayer 1.5 0.6 -19.2 -19.2 -0.2Santen Pharmaceutical 1.0 0.0 -18.3 -18.3 -0.2ING Groep NV 1.3 0.3 -13.2 -13.2 -0.2

39

PORTFOLIO REVIEW AND CHARACTERISTICS


Significant transactions Ending

From 01-Sep-15 to 31-Aug-16 Security Sector Transaction type Trade (%) weight (%)Purchases GEA GROUP AG Industrials New position 1.1 1.6

SECOM CO LTD Industrials New position 1.0 1.2

SCHNEIDER ELECTRIC Industrials New position 1.0 1.3

IMI PLC Industrials Add 1.0 1.1

UBS GROUP AG Financials Add 0.9 1.1

Sales GLAXOSMITHKLINE PLC Health Care Eliminate position -1.6 .–

NOVARTIS AG Health Care Eliminate position -1.5 .–

KDDI CORP Telecommunication Services Trim -0.9 2.6

HSBC HOLDINGS PLC Financials Eliminate position -0.7 .–

KAO CORP Consumer Staples Trim -0.6 2.2

41


Top 10 portfolio holdings

As of 31-Aug-16 Country Sector Portfolio (%)

Nestle SA Switzerland Consumer Staples 4.9 0.0 1.6

Danone SA France Consumer Staples 4.3 0.0 0.3

Reckitt Benckiser Group PLC United Kingdom Consumer Staples 3.8 0.0 0.4

Brambles Ltd Australia Industrials 3.2 0.0 0.1

Henkel AG & Co KGaA IPS Germany Consumer Staples 2.8 0.0 0.1

Compass Group PLC United Kingdom Consumer Discretionary 2.7 0.0 0.2

KDDI Corp Japan Telecommunication Services 2.6 0.0 0.4

Fairfax Financial Holdings Ltd Canada Financials 2.4 0.0 0.1

Japan Tobacco Inc Japan Consumer Staples 2.3 0.0 0.3

Kao Corp Japan Consumer Staples 2.2 0.0 0.2

MSCI World ex USValue IMI (%)

MSCI Worldex US IMI (%)

42


Characteristics

No forecasts can be guaranteed.1 Weighted average.2 (Lesser of purchase or sales)/average market value.

As of 31-Aug-16 Portfolio ex US Value IMI (%) ex US IMI (%)

Fundamentals1 Price/earnings (12 months forward) 18.4x 13.0x 15.1x

Price/earnings (12 months trailing) 19.8x 17.9x 20.0x

Price/sales 1.9x 0.8x 1.1x

Price/cash flow 14.8x 8.5x 10.2x

Return on equity (3-year average) 17.5% 10.3% 14.3%

IBES Long Term EPS growth 7.4% 6.4% 8.6%

Price/book 2.3x 1.1x 1.6x

Dividend Yield 2.5% 4.2% 3.2%

Price/earnings to growth 2.1x 1.5x 1.7x

Market capitalization (USD) Weighted average 42.1 bn 45.0 bn 46.1 bn

Diversification Top 10 holdings 31% 14.1% 9%

Number of holdings 93 2,055 3,470

Number of countries 15 22 22

Turnover2 1 year 6.7% – –

MSCI World MSCI World

43


Characteristics

No forecasts can be guaranteed.1 Based on 5-year composite monthly data.

Source: Barra. The Barra information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used to create any financial instruments or products or any indices. The Barra information is provided on an "as is" basis and the user of this information assumes the entire risk of any use made of this information.

Barra, each of its affiliates and each other person involved in or related to compiling, computing or creating any Barra information (collectively, the "Barra Parties") expressly disclaims all warranties(including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.Without limiting any of the foregoing, in no event shall any Barra Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) orany other damages.

32

As of 31-Aug-16 Portfolio ex US Value IMI (%) ex US IMI (%)

Risk/reward (USD)1 Standard deviation 11.3% 15.5% 14.7%

Barra predicted tracking error 2 – 6.7% 4.8%

Beta vs. – 0.65 0.70

R-square – 79% 84%

Correlation – 0.89 0.91

Alpha (annualized) – 9.12 8.40

Sharpe ratio – 1.1% 1.1%

Jensen’s alpha – 9.5 8.7

Treynor ratio – 18.5 17.1

MSCI World MSCI World

44


Regional exposures – domicile vs. revenueMFS International Value Equity relative to MSCI World ex US Value IMI

By Domicile By Revenue

MFS International MSCI World ex US Relative MFS International MSCI World ex US Relative USValue Equity (%) Value IMI Index (%) weight (%) Value Equity (%) Value IMI Index (%) weight (%)

North America 2.4 8.9 -6.5 18.7 19.3 -0.6Europe Ex-U.K. 48.3 36.3 12.0 25.7 25.2 0.5United Kingdom 17.4 19.9 -2.5 8.4 9.5 -1.1Developed - Middle East/Africa 0.0 0.7 -0.7 0.2 0.5 -0.3Japan 24.1 23.0 1.1 21.7 16.4 5.3Asia Pacific Ex-Japan 4.4 11.2 -6.8 2.3 9.5 -7.3Emerging Markets 0.0 0.0 0.0 20.8 17.6 3.3Other Countries 0.0 0.0 0.0 2.2 1.9 0.3

NorthAmerica

Europeex-U.K.

UnitedKingdom

Developed - Middle East/Africa

Japan Asia Pacific Ex-Japan

EmergingMarkets

OtherCountries

Perce

nt (%

)

-6.5

-0.6

12.0

0.5

-2.5 -1.1 -0.7 -0.3

1.15.3

-6.8 -7.3

0.03.3

0.0 0.3


Relative weight (%), as of 31-Aug-16

Source: MSCI, FactSet. For companies not covered by the MSCI database, regional exposure was allocated based on country of domicile. All portfolio calculations exclude cash. The "Other Countries" category consists of countries not followed by MSCI.

45


Regional exposures – domicile vs. revenueMFS International Value Equity relative to MSCI World ex US IMI


MFS International MSCI World ex Relative MFS International MSCI World ex Relative USValue Equity (%) US IMI Index (%) weight (%) Value Equity (%) US IMI Index (%) weight (%)

North America 2.4 8.8 -6.4 18.7 22.0 -3.3Europe Ex-U.K. 48.3 39.5 8.8 25.7 22.6 3.1United Kingdom 17.4 17.3 0.1 8.4 8.6 -0.2Developed - Middle East/Africa 0.0 0.8 -0.8 0.2 0.5 -0.2Japan 24.1 22.6 1.5 21.7 16.5 5.2Asia Pacific Ex-Japan 4.4 11.1 -6.7 2.3 9.1 -6.8Emerging Markets 0.0 0.0 0.0 20.8 18.4 2.4Other Countries 0.0 0.0 0.0 2.2 2.2 0.0

NorthAmerica

Europeex-U.K.

UnitedKingdom

Developed - Middle East/Africa

Japan Asia Pacific Ex-Japan

EmergingMarkets

OtherCountries

Perce

nt (%

)

-6.4-3.3

8.8

3.10.1

-0.2 -0.8 -0.2

1.5

5.2

-6.7 -6.8

0.02.4

0.0 0.0


Relative weight (%), as of 31-Aug-16

Source: MSCI, FactSet. For companies not covered by the MSCI database, regional exposure was allocated based on country of domicile. All portfolio calculations exclude cash. The "Other Countries" category consists of countries not followed by MSCI.

46


Region and country weights Underweight/

Portfolio (%) overweight (%)Europe ex. U.K. 48.3 36.3 12.0 Switzerland 13.5 4.3 9.2 Germany 14.0 7.4 6.6 Netherlands 3.6 1.5 2.1 France 10.4 9.4 1.0 Ireland 0.8 0.1 0.7 Norway 1.0 1.0 0.0 Denmark 0.8 0.8 0.0 Sweden 2.2 2.7 -0.5 Finland 0.2 1.6 -1.4 Spain 1.8 3.6 -1.7 Other1 0.0 4.0 -2.2Japan 24.1 23.0 1.1Developed - Middle East/Africa 0.0 0.7 -0.7 Other1 0.0 0.7 -0.6U.K. 17.4 19.9 -2.4North America 2.4 8.9 -6.5 Canada 2.4 8.9 -6.5Asia/Pacific ex Japan 4.4 11.2 -6.7 Australia 4.0 6.6 -2.6 Hong Kong 0.4 3.0 -2.6 Other1 0.0 1.5 -1.5

Underweight/overweight as of 31-Aug-16 (%)

3.3% Cash & Cash Equivalents.1 Portfolio does not own securities in the following countries: Italy 2.5%, Singapore 1.2%, Belgium 0.9%, Israel 0.7%; and 3 other countries with weights less than 0.5% totaling 0.9%.

MSCI World ex US Value IMI (%)

Asia/Pacificex-Japan

North America

UnitedKingdom

Developed –Middle East/Africa

Japan

Europeex-U.K. 12.0

1.1

-0.7

-2.4

-6.5

-6.7

47

-6.7Asia/Pacificex-Japan

0.1UnitedKingdom

1.5Japan


Region and country weights

3.3% Cash & Cash Equivalents. Portfolio does not own securities in the Developed - Middle East/Africa region (0.8%).

1 Portfolio does not own securities in the following countries: Italy 2.0%; Belgium 1.3%; Singapore 1.2%; Israel 0.8%; and 3 other countries with weights less than 0.5% totaling 0.7%.

Portfolio (%) Underweight/overweight (%)Underweight/overweight

as of 31-Aug-16 (%) MSCI World ex US IMI (%)Europe ex-U.K. 48.3 39.5 8.8Germany 14.0 7.9 6.1Switzerland 13.5 7.6 5.9France 10.4 8.1 2.3Netherlands 3.6 2.8 0.8Norway 1.0 0.7 0.3Ireland 0.8 0.5 0.3Sweden 2.2 2.9 -0.7Finland 0.2 1.0 -0.8Denmark 0.8 1.6 -0.8Spain 1.8 2.7 -0.9Other Countries 1 0.0 3.7 -3.7

Japan 24.1 22.6 1.5United Kingdom 17.4 17.3 0.1North America 2.4 8.8 -6.4Canada 2.4 8.8 -6.4

Asia/Pacific ex-Japan 4.4 11.1 -6.7Australia 4.0 6.5 -2.5Hong Kong 0.4 3.0 -2.6Other Countries 1 0.0 1.6 -1.6\

8.8

-6.4

Europeex-U.K.

North America

48


Sector weights

Cons

umer

St

aples

Indus

trials

Finan

cials

Infor

matio

n Te

chno

logy

Healt

h Ca

re

Mater

ials

Cons

umer

Di

scre

tiona

ry

Telec

ommu

nicati

on

Servi

ces

Ener

gy

Utilit

ies

29.6

2.4

11.2

19.7

12.314.5

17.9

38.0

24.4

11.4

3.56.1 5.1 5.9

10.0

4.7

8.5 8.1

4.5

10.812.3

3.2 3.8 4.2

0.7

9.25.9

0.0

5.53.3

Portfolio MSCI World ex US Value IMI MSCI World ex US IMI

As of 31-Aug-16

3.3% cash and other assets are less liabilities; this may include derivative offsets. Portfolio and benchmark data shown is based on MFS's sector/industry classification methodology, which differs from the benchmark's.

Relative exposure to:

MSCI World ex US Value IMI 27.2 7.4 -20.1 7.9 -0.8 -3.8 -6.3 -0.6 -8.5 -5.5MSCI World ex US IMI 18.4 5.2 -6.5 5.3 -4.9 -3.4 -7.8 -1.0 -5.2 -3.3

49


Employees' Retirement, Disability & Death Benefit Plan Portfolio holdings

MarketAs of 31-Aug-16 Country Value (%)


Cash & Cash Equivalents 3.3Consumer Discretionary 4.5Compass Group PLC United Kingdom 2.7Cie Financiere Richemont SA Switzerland 0.5Esprit Holdings Ltd Hong Kong 0.4USS Co Ltd Japan 0.4Yamaha Corp Japan 0.3Sankyo Co Ltd Japan 0.1Consumer Staples 29.6Nestle SA Switzerland 4.9Danone SA France 4.3Reckitt Benckiser Group PLC United Kingdom 3.8Henkel AG & Co KGaA IPS Germany 2.8Japan Tobacco Inc Japan 2.3Kao Corp Japan 2.2Pernod Ricard SA France 2.2British American Tobacco PLC United Kingdom 2.0Heineken NV Netherlands 1.8Toyo Suisan Kaisha Ltd Japan 0.9Kobayashi Pharmaceutical Co Ltd Japan 0.9Ito En Ltd Japan 0.7Kerry Group PLC Ireland 0.5Kose Corp Japan 0.2Energy 0.7Inpex Corp Japan 0.4Cairn Energy PLC United Kingdom 0.2

Financials 17.9Fairfax FinancialHoldings Ltd Canada 2.4Vonovia SE Germany 1.9Deutsche Wohnen AG Germany 1.8Svenska Handelsbanken AB Sweden 1.3ING Groep NV Netherlands 1.2UBS Group AG Switzerland 1.1DNB ASA Norway 1.0Sumitomo MitsuiFinancial Group Inc Japan 0.8LEG Immobilien AG Germany 0.7Zurich Insurance Group AG Switzerland 0.6IG Group Holdings PLC United Kingdom 0.6Hiscox Ltd United Kingdom 0.5TAG Immobilien AG Germany 0.4Daiwa Securities Group Inc Japan 0.4Jardine LloydThompson Group PLC United Kingdom 0.4Euler Hermes Group France 0.3Hachijuni Bank Ltd Japan 0.3Julius Baer Group Ltd Switzerland 0.3Chiba Bank Ltd Japan 0.3Joyo Bank Ltd Japan 0.3Sydbank AS Denmark 0.3Jyske Bank AS Denmark 0.3North Pacific Bank Ltd Japan 0.3Bank of Ireland Ireland 0.3Sony Financial Holdings Inc Japan 0.1

50


Employees' Retirement, Disability & Death Benefit Plan Portfolio holdings (continued)

Health Care 5.1Roche Holding AG Switzerland 1.2Bayer AG Germany 1.2Santen Pharmaceutical Co Ltd Japan 0.8Nihon Kohden Corp Japan 0.8Terumo Corp Japan 0.8Rohto Pharmaceutical Co Ltd Japan 0.1Industrials 19.7Brambles Ltd Australia 3.2Yamato Holdings Co Ltd Japan 2.0Bunzl PLC United Kingdom 2.0GEA Group AG Germany 1.6Schneider Electric SE France 1.3SGS SA Switzerland 1.3Secom Co Ltd Japan 1.2Legrand SA France 1.2IMI PLC United Kingdom 1.1Spirax-Sarco Engineering PLC United Kingdom 0.9Brenntag AG Germany 0.8Intertek Group PLC United Kingdom 0.6Cobham PLC United Kingdom 0.6RELX NV Netherlands 0.4Geberit AG Switzerland 0.4Schindler Holding AG Switzerland 0.4Glory Ltd Japan 0.3MISUMI Group Inc Japan 0.2Wartsila OYJ Abp Finland 0.2

Information Technology 11.4Amadeus IT Holding SA Spain 1.8Nomura ResearchInstitute Ltd Japan 1.6Infineon Technologies AG Germany 1.1Hirose Electric Co Ltd Japan 1.1Halma PLC United Kingdom 1.0TelefonaktiebolagetLM Ericsson Sweden 0.9Dassault Systemes France 0.9Obic Co Ltd Japan 0.8Omron Corp Japan 0.5Spectris PLC United Kingdom 0.5Neopost SA France 0.3Yokogawa Electric Corp Japan 0.3Computershare Ltd Australia 0.3ASM International NV Netherlands 0.2Materials 4.7Givaudan SA Switzerland 2.1Symrise AG Germany 1.5Syngenta AG Switzerland 0.6Orica Ltd Australia 0.5Telecommunication Services 3.2KDDI Corp Japan 2.6Vodafone Group PLC United Kingdom 0.4TDC AS Denmark 0.2



51


Retiree Health Benefits Fund Portfolio holdings



Cash & Cash Equivalents 3.3Consumer Discretionary 4.5Compass Group PLC United Kingdom 2.8Cie Financiere Richemont SA Switzerland 0.5Esprit Holdings Ltd Hong Kong 0.4USS Co Ltd Japan 0.4Yamaha Corp Japan 0.3Sankyo Co Ltd Japan 0.1Consumer Staples 29.5Nestle SA Switzerland 4.9Danone SA France 4.2Reckitt Benckiser Group PLC United Kingdom 3.8Henkel AG & Co KGaA IPS Germany 2.8Japan Tobacco Inc Japan 2.3Kao Corp Japan 2.2Pernod Ricard SA France 2.2British American Tobacco PLC United Kingdom 2.0Heineken NV Netherlands 1.8Toyo Suisan Kaisha Ltd Japan 0.9Kobayashi Pharmaceutical Co Ltd Japan 0.9Ito En Ltd Japan 0.7Kerry Group PLC Ireland 0.5Kose Corp Japan 0.2Energy 0.7Inpex Corp Japan 0.4Cairn Energy PLC United Kingdom 0.2

Financials 17.9Fairfax FinancialHoldings Ltd Canada 2.4Vonovia SE Germany 1.9Deutsche Wohnen AG Germany 1.9Svenska Handelsbanken AB Sweden 1.3ING Groep NV Netherlands 1.2UBS Group AG Switzerland 1.1DNB ASA Norway 1.0Sumitomo MitsuiFinancial Group Inc Japan 0.8LEG Immobilien AG Germany 0.7Zurich Insurance Group AG Switzerland 0.6IG Group Holdings PLC United Kingdom 0.6Hiscox Ltd United Kingdom 0.5TAG Immobilien AG Germany 0.4Daiwa Securities Group Inc Japan 0.4Jardine LloydThompson Group PLC United Kingdom 0.4Euler Hermes Group France 0.3Hachijuni Bank Ltd Japan 0.3Julius Baer Group Ltd Switzerland 0.3Chiba Bank Ltd Japan 0.3Joyo Bank Ltd Japan 0.3Sydbank AS Denmark 0.3Jyske Bank AS Denmark 0.3North Pacific Bank Ltd Japan 0.3Bank of Ireland Ireland 0.3Sony Financial Holdings Inc Japan 0.1

52


Retiree Health Benefits Fund Portfolio holdings (continued)

Health Care 5.1Roche Holding AG Switzerland 1.2Bayer AG Germany 1.2Santen Pharmaceutical Co Ltd Japan 0.8Nihon Kohden Corp Japan 0.8Terumo Corp Japan 0.8Rohto Pharmaceutical Co Ltd Japan 0.1Industrials 19.8Brambles Ltd Australia 3.2Yamato Holdings Co Ltd Japan 2.0Bunzl PLC United Kingdom 2.0GEA Group AG Germany 1.6Schneider Electric SE France 1.3SGS SA Switzerland 1.3Secom Co Ltd Japan 1.2Legrand SA France 1.2IMI PLC United Kingdom 1.1Spirax-Sarco Engineering PLC United Kingdom 0.9Brenntag AG Germany 0.8Intertek Group PLC United Kingdom 0.6Cobham PLC United Kingdom 0.6Geberit AG Switzerland 0.4Schindler Holding AG Switzerland 0.4RELX NV Netherlands 0.3Glory Ltd Japan 0.3MISUMI Group Inc Japan 0.2Wartsila OYJ Abp Finland 0.2

Information Technology 11.4Amadeus IT Holding SA Spain 1.8Nomura ResearchInstitute Ltd Japan 1.6Hirose Electric Co Ltd Japan 1.1Infineon Technologies AG Germany 1.1Halma PLC United Kingdom 1.0TelefonaktiebolagetLM Ericsson Sweden 0.9Dassault Systemes France 0.9Obic Co Ltd Japan 0.8Spectris PLC United Kingdom 0.6Omron Corp Japan 0.5Computershare Ltd Australia 0.3Neopost SA France 0.3Yokogawa Electric Corp Japan 0.3ASM International NV Netherlands 0.2Materials 4.7Givaudan SA Switzerland 2.0Symrise AG Germany 1.5Syngenta AG Switzerland 0.6Orica Ltd Australia 0.5Telecommunication Services 3.2KDDI Corp Japan 2.6Vodafone Group PLC United Kingdom 0.4TDC AS Denmark 0.2



53

FEE SCHEDULE


Assets Fees

Separate account Initial $100 million 45 basis points or 0.45%

Next $100 million 40 basis points or 0.40%

Over $200 million 30 basis points or 0.30%

LADWP’s fee schedule

55


MFS International Value Equity CompositePerformance – net of fees (USD)


Source for benchmark performance: SPAR, FactSet Research Systems Inc. Past performance is no guarantee of future results.

Perce

nt (%

)

MFS International Value Equity CompositeMSCI EAFE (Europe, Australasia, Far East) Value Index (net div)

2.1

12.3

9.6

11.2

6.9

-2.8-3.9

0.7

4.0

0.4

2Q16 1 Year 3 Years 5 Years 10 Years

56


MFS International Value Equity CompositePerformance – net of fees (USD)


Source for benchmark performance: SPAR, FactSet Research Systems Inc. Past performance is no guarantee of future results.

Perce

nt (%

)

MFS International Value Equity CompositeMSCI World (ex-US) Investable Market Index Value (net div)MSCI World (ex-US) Investable Market Index (net div)

2.1

12.3

9.6

11.2

6.9

-2.1-1.3

1.0

4.0

1.0

-1.1

1.32.7

4.7

2.0

2Q16 1 Year 3 Years 5 Years 10 Years

57

Composite: MFS International Value Equity CompositeBenchmark: MSCI EAFE Value - Net Return

Creation Date: 19-Oct-2005

Inception Date: 01-Dec-1997

Investment Objective: To provide long-term capital appreciation and current income by investing principally in attractively valued equities of companies whose operations lie outside of the U.S. Stock selection is based solely on MFS proprietary research process and therefore excludes assets managed by external parties or non-MFS sub-advisors.

Institutional Separate Accounts Fee ScheduleAsset Breakpoints (USD) FeeFor Assets Up To 50 MM 75 bpFor Assets From 50 MM To 100 MM 60 bpFor Assets Over 100 MM 50 bp

Accounts are eligible for inclusion in the composite if they have assets greater than 2 MM USD. Accounts are included as of their first full month of performance.

Accounts in Annualized 3-YearComposite and Benchmark Return % Composite Composite at Standard Deviation Assets in Composite

Period Gross of fees Net of fees Benchmark Dispersion End of Period Composite Benchmark (USD million) %Firm2016 Q2 2.28 2.09 -2.79 0.24 18 10.50 14.31 $33,794.2 8.0

2016 Q1 2.76 2.57 -3.97 0.25 18 11.20 14.54 $33,522.2 8.0

2015 7.51 6.71 -5.68 0.29 18 10.85 13.61 $32,903.4 8.0

2014 2.33 1.56 -5.39 0.23 19 10.87 14.32 $27,757.3 6.5

2013 29.04 28.09 22.95 0.58 20 12.32 17.45 $22,037.3 5.3

2012 17.21 16.34 17.69 0.23 19 14.59 20.56 $12,317.2 3.8

2011 -0.68 -1.43 -12.17 0.10 12 19.87 24.86 $6,494.2 2.9

2010 10.60 9.78 3.25 n/a 9 n/a n/a $5,104.7 2.3

2009 26.50 25.57 34.23 n/a <6 n/a n/a $3,009.2 1.6

2008 -30.86 -31.39 -44.09 n/a <6 n/a n/a $998.4 0.8

2007 8.77 7.96 5.96 n/a <6 n/a n/a $1,540.1 0.8

2006 30.25 29.30 30.38 n/a <6 n/a n/a $1,109.9 0.6MFS Investment Management® claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. MFS Investment Management® has been independently verified for the periods 1-Jan-1988 through 31-Dec-2015. The verification report(s) is/are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. MFS International Value Equity Composite has been examined for the periods 01-Dec-1997 through 31-Dec-2015. The verification and performance examination reports are available upon request.

Total Gross-of-fee returns in USD (includes both capital appreciation and income), are net of transaction costs, withholding taxes and direct expenses, but before management fees, custody and other indirect expenses. Certain institutional accounts hold Canadian trusts subject to custody and other indirect expenses. Certain accounts may be subject to fair valuation as conditions warrant. Typical separate accounts utilize 4:00 PM (London Time) foreign exchange rates; retail products will use rates deemed most appropriate for daily NAV per share calculations. The possibility exists for performance dispersion between otherwise similarly managed accounts and also with the benchmark. Net composite returns are prepared by subtracting from the monthly gross returns one-twelfth of the maximum applicable annual institutional separate account fee. Returns based on actual management fees, including non-separate account fees and performance based fees, would be lower for the following periods - 2006: 29.11; 2007: 7.74; 2008: -31.49; 2009: 25.44. Total returns of the benchmark are provided for each period depicted, expressed in USD. Source of Benchmark Performance: FACTSET ®. Benchmark returns are not examined by independent accountants. MSCI EAFE Value - Net Return - a market capitalization-weighted index that is designed to measure equity market performance for value securities in the developed markets, excluding the U.S. and Canada. Composite Dispersion is measured by the asset-weighted standard deviation of account returns for all accounts in the composite for the full period. For composites containing less than six accounts, dispersion is deemed not meaningful. Prior to 31-Mar-2009 accounts would be eligible for inclusion in the composite if they had assets greater than 5.0 MM USD. Certain accounts in this composite may make tactical allocation to U.S. and Canadian based securities, where each investment is deemed to be consistent with the composite's overall investment objective. For purposes of GIPS compliance, the firm is defined as MFS Investment Management® which is comprised of Massachusetts Financial Services Company (MFS) and MFS Institutional Advisors, Inc. (MFSI), each of which is a registered investment advisor, MFS Heritage Trust Company, a New Hampshire Trust company, and MFS Investment Management Canada Limited, a registered investment advisor. Total firm assets are calculated at market value and include assets managed by MFS, MFSI, MFS Heritage Trust Company and MFS Investment Management Canada Limited as well as assets managed by MFS and MFSI in a sub-advisory capacity on behalf of affiliated investment advisors that may or may not be registered under the United States Investment Advisers Act of 1940, such as MFS International (U.K.), Ltd. (MIL UK) and MFS Investment Management K.K. (MIMKK), as well as assets managed by MFS and MFSI on behalf of unaffiliated investment advisors that may or may not be registered under the United States Investment Advisers Act of 1940. Total firm assets for GIPS purposes do not include assets of non-discretionary advisory relationships. In November of 2011 MFS acquired McLean Budden Limited (now MFS Investment Management Canada Limited). Total firm assets from 31-Mar-2012 forward include the assets of institutional and pooled MFS Investment Management Canada Limited products. Assets from 31-Dec-2012 forward include the MFS Investment Management Canada Limited PPM product assets. A complete list of firm composites and descriptions, along with additional information regarding policies for valuing portfolios, calculating and reporting performance, and preparing compliant presentations are available upon request.

Run Time: 22-Jul-16 9:20:17 AM AEDIV Page 1 of 1

Performance Presentation Report 2016, Q2

GLOSSARY OF INVESTMENT TERMS


Glossary of termsAlpha is a measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk asmeasured by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, anegative alpha indicates the portfolio's underperformance, given the expectations established by the fund's beta.

Beta is a measure of a portfolio's sensitivity to market movements. The beta of the market is 1.00 by definition. A portfolio with abeta of 0.85 would indicate that the portfolio is expected to perform 15% worse that the market's excess return during up marketsand 15% better during down markets , assuming all other factors remain constant.

Earnings-per-share (EPS) growth represents the annualized rate of net-income-per-share growth over the trailing three-yearperiod for the stocks held by the portfolio. Earnings-per-share growth gives a good picture of the rate at which a company hasgrown its profitability per unit of equity.

Excess return is defined as the portfolio's achieved rate of return minus the benchmark return over the same period.

Information ratio is a measure of risk adjusted performance. Dividing the portfolio active return by portfolio tracking error givesyou the information ratio.

Predicted tracking error (also called active risk) is a measure of the expected deviation from the benchmark.

Price/book ratio of the portfolio is the weighted average of the price/book ratios of all the stocks in the portfolio. Book value is thetotal assets of a company, less total liabilities. A company's book value is calculated by dividing the market price of its outstandingstock by the company's book value, and then adjusting for the number of shares outstanding (Stocks with negative book valuesare excluded from this calculation.). The price/book ratio can tell investors approximately how much they're paying for acompany's assets, based on historical, rather than current, valuations.

Price/cash flow is a stock's current price divided by the trailing 12-month cash flow per share. For the portfolio this numberrepresents the weighted average of the price/cash-flow ratios of the stocks in the portfolio. Price/cash-flow represents the amountan investor is willing to pay for a dollar generated from a particular company's operations. Price/cash-flow shows the ability of abusiness to generate cash and acts as a gauge of liquidity and solvency.

60


Glossary of terms (continued)

P/E (12 month forward) is a stock's current price divided by the company's trailing 12-month earnings per share. The (P/E) ratioof the portfolio is the weighted average of the price/earnings ratios of the stocks in the portfolio. The P/E ratio of a company,which is a comparison of the cost of the company's stock and its expected next 12-month earnings per share, is calculated bydividing these two figures.

Price/sales is a stock's current price divided by the company's trailing 12-month sales per share. For the portfolio this numberrepresents the weighted average of the price/sales ratios of the stocks in the portfolio. Price/sales represents the amount aninvestor is willing to pay for a dollar generated from a particular company's operations.

R-Squared is the measure of correlation between a portfolio and the market (benchmark). Values range between 0 and 1. Thehigher the value of R-Square, the greater the correlation between the two. R-squared can be used to determine the significanceof a particular beta or alpha. Generally, a higher R-squared will indicate a more useful beta figure. If the R-squared is lower, thenthe beta is less relevant to the fund's performance.

Realized tracking error (also called active risk) is a measure of the actual deviation from the benchmark.

Return on Equity (ROE) represents the amount of net income returned as a percentage of shareholders equity. Return on equitymeasures a corporation's profitability by revealing how much profit a company generates with the money shareholders haveinvested. ROE can be one measure of quality of a company.

Sharpe Ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. The higher theSharpe ratio, the better the portfolio's historical risk-adjusted performance.

Standard Deviation is a statistical measurement of dispersion about an average and depicts how widely a portfolio's returnsvaried over a certain period of time. When a portfoliohas a high standard deviation, the predicted range of performance is wide,implying greater volatility.

61

INTERNATIONAL VALUE EQUITY - LADWPretirement.ladwp.com/AgendaItems/20161012 Item 06.pdf · -...

Documents

Transcript of INTERNATIONAL VALUE EQUITY - LADWPretirement.ladwp.com/AgendaItems/20161012 Item 06.pdf · -...