investment manager summary...may 20, 2020 · dominion resources, inc. ericsson inc. hirtle,...

13

Item No. 13: Annual Presentation by Jennison Associates – Domestic Large-Cap Growth Equity Manager (May 20, 2020, Special Retirement Board Meeting)

INVESTMENT MANAGER SUMMARY

MANAGEMENT Firm Name Jennison Associates Manager Tenure with Fund 1.2 Years Investment Strategy/Vehicle Large-Cap Growth Equity Contract Expiration 09/30/2021

ASSETS Total Firm AUM (12/31/2019) $173.2 Billion Total Firm Assets in Strategy (12/31/2019) $63.0 Billion Total Assets Managed for WPERP (02/29/2020) RP - $740.3 Million

HP - $126.4 Million

PERFORMANCE As of 02/29/2020 YTD 1 Year Inception

Jennison LCG (gross) -1.08% 13.83% 16.96% Jennison LCG (est. net) -1.12% 13.54% 16.67% Russell 1000 Growth Index -4.73% 15.11% 17.62% Difference (net of fees) 3.61% -1.57% -0.95%

Fees Schedule 25 basis points on all assets

WATCH STATUS N/A

Not for redistribution.

Water & Power Employees’

Retirement Plan

Large Cap Growth Equity (LCG)

April 15, 2020

The information in this presentation is confidential and is intended for use by the recipient only. Further distribution is prohibited without Jennison's prior consent. For your reference, many key

terms in this presentation are defined in the Appendix.

1

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 Disclosures

8. Glossary of Investment Terms

2

Company Overview

3

Focus Investment Culture Stability

Investment management is Jennison’s

only business and our goal is to generate

superior long-term investment

outperformance

Our skilled investment approach is based

on rigorous fundamental research and

manifests in conviction-based investing

Jennison is made up of deeply resourced,

dedicated investment teams in which

individual success is measured as

collective investment outperformance on

behalf of our clients

We believe meritocracy leads to best

outcomes for clients and an inclusive and

diverse workforce

Jennison applies a long-term perspective

to investing and business planning with

strategic investments made to meet

evolving client needs and not short-term

business targets

Jennison Associates

Our Defining Characteristics

At A Glance

Location - New York and Boston

Number of Employees: 349

Investment Professionals: 70

Firm Inception: 1969

As of 12/31/19.Blended portfolios are shown in their respective underlying capabilities. Due to rounding, individual product assets may not sum to total AUM shown.

• Large Cap Growth $63.0

• Concentrated Growth $13.5

• Health Care $2.4

• Large Cap Value $2.4

• Focused Value $3.5

• Income & Dividend $1.4

• Core $0.5

• Utilities/Infrastructure/ $5.2

Natural Resources

• Long Duration/LDI $39.1

• Intermediate $15.4

• Core $8.2

Growth Equity

$79.6

Fixed Income

$62.7

Assets Under Management

$173.2B

• Small Cap $2.4

• SMid Cap $2.2

• Mid Cap $2.6

Value/Core Equity

$13.3

Small/SMid/Mid Cap Equity

$7.5

• Global Growth $8.2

• International Growth $1.5

Global/International/EM Equity

$10.0

4

Jennison Organization

As of 3/1/20.

Information Governance

Pak(Reports to Vrdoljak)

Value Equity

Koontz

Esposito

Income &

Infrastructure

Hong

Edemeka

Natural

Resources

Brown

Saunders

Value

Koontz

Mid Cap Equity

Mullman

Prasad

Bryan

Small/Mid

Mullman

Small & SMid Cap Equity

SwiatekPrasad

SartoriusShapiro

Custom Solutions

McManus

Custom Solutions

Group

McManus

Equity Trading

Wilburn

Operations

Minkler

Systems

Batalitzky, Cahill

Alternative Investment

ServicesMohs

Investment Support Services

Miele

Legal

Hwang

Risk Mgmt.

Pelham

Compliance

Willis

Finance

Vrdoljak

COO

Moore

Global Equity

Baribeau, Davis

Growth Equity

Segalas

McCarragher

Del Balso

Boyer

Kuhlkin

Irwin

Health Sciences

Chan

Netschert

Growth

McCarragher

Fixed Income

Wolfe

Credit Team

Wolfe

Gaul

Zussman

Klemmer

Staudt

Fixed Trading

Schmidt

Rates Team

Lourie

Kaplan

Rabin

Investments

Human Resources

& Benefits

Brogle

Corporate Services

Graham

ProductDistributionBusiness Support

Becker - Chairman, Chief Executive Officer

Segalas - President, Chief Investment Officer

Product Mgmt &

Development

Product &

Strategy

Clark

Product

Specialists

Relationship Management

Consultant

Relations

Marketing &

Communications

Global

Distribution

McEvoy

Client Service

5

Portfolio ManagersAverage Experience: 37 years

Average Tenure with Jennison: 24 years

Industry Firm

Large Cap Growth

Spiros “Sig” Segalas 59 51

Kathleen A. McCarragher 40 22

Blair A. Boyer 36 27

Michael Del Balso 51 48

Rebecca Irwin 22 13

Natasha Kuhlkin, CFA 24 16

Global

Mark Baribeau, CFA 34 9

Thomas F. Davis 26 9

Experienced Large Cap Growth Investment TeamAverage 28 years of industry experience, 19 years with Jennison

Research AnalystsAverage Experience: 22 years


Industry Firm

Consumer/Internet

Rebecca Irwin 22 13

Natasha Kuhlkin, CFA 24 16

Consumer

David A. Ravera 28 20

Health Care

David Chan, CFA 31 28

Debra Netschert 20 12

Steven M. Postal, CFA 19 3

Alison Yang, MD 12 5

Christina Zhang, RN 10 6

Technology

Nick Rubinstein 26 22

Erika Klauer 28 18

Financials

Andrew M. Tucker, CFA 28 22

Industrials

Owuraka Koney, CFA 15 12

Portfolio Specialists

Average Experience: 33 years


Industry Firm

Richard K. Mastain 39 19

Daniel J. Nichols 27 15

6

Long-Standing Client RelationshipsGREATER THAN 40 YEARS 15 - 20 YEARS 5 YEARS AND LESS

Abbott Laboratories Dr. Scholl Foundation ACEC Retirement Trust

AbbVie Inc. John Hancock Investment Management Services, LLC Arconic Inc.

Harbor Capital Advisors, Inc. National Rural Electric Cooperative Association Board of Trustees of the Twin City Carpenters

Northrop Grumman Corporation Prudential Retirement Insurance & Annuity Company and Joiners Pension Plan

Shriners Hospital for Children Broadridge Financial Solutions, Inc.

30 - 40 YEARS University of San Francisco± Detroit Diesel Corporation Investment Committee

Baxter International Inc. Utah Retirement Systems*

E. Rhodes and Leona B. Carpenter Foundation

HP Inc. Investment Committee of Bridger Coal Company

Motorola, Inc. 10 - 15 YEARS Navajo Nation

Navistar, Inc. American Electric Power State Highway Patrol Retirement System±*

PPL Services Corporation Plumbers & Pipefitters National Pension Fund Stryker Corporation

PGIM, Inc. Siebert Lutheran Foundation, Inc.±

The Prudential Insurance Company of America State Board Administration of Florida±*

Verizon Investment Management Corp. The Vanguard Group, Inc.

20 - 30 YEARS 5 - 10 YEARS

Air Products and Chemicals, Inc. Ameren Services Company

Ann & Robert H. Lurie Children’s Hospital of Chicago The Boeing Company Employee Savings Plan

Carnegie Institute Master Trust

DeKalb County Employees Retirement System*

Daimler Trucks North America LLC

Dominion Resources, Inc. Ericsson Inc.

Hirtle, Callaghan & Co., Inc. KeyCorp 401(k) Savings Plan

Intermountain Health Care, Inc. Lexington-Fayette Urban County Government

Laborer’s District Council & Contractors’ Pension Policemen’s and Firefighters’ Pension Fund*

Fund of Ohio Mercer Trust Company

PGIM Investments Michigan Carpenters’ Pension Fund±

Pittsburgh Symphony, Inc. MultiCare Health System

Prudential Trust Company North Central States Regional Council

The Texas A&M University System of Carpenters Pension Fund

University of Southern California State of Michigan*

Jennison’s LCG client relationships average

16 years.

As of 12/31/19.This list includes all Jennison Large Cap Growth clients except for those that have restricted the use of their names. It is not known whether the listed clients approve or disapprove of Jennison or the advisory

services provided. Due to corporate restructurings, mergers, or acquisitions, client name listed may not necessarily be the entity that originally contracted with Jennison to provide services to such account.±Participant in a Jennison-managed commingled vehicle.

*Large Cap Growth Equity Public Plans

7

Key Contacts

Lisa BeachManaging Director, Director of Client Service212-833-0566 / [email protected]

Client Service

Blair A. Boyer

Managing Director, Co-Head of Large Cap Growth Equity

212-833-0479 / [email protected]

Portfolio Management

Relationship Manager

Peter H. Reinemann, CFA

Managing Director, Client Relationship Management

212-833-0471 / [email protected]

8

Investment Process and Discipline

9

What we believe:

Growth in earnings and cash flows drive share prices over the long term

Excess returns are generated by investing in market leading companies that create economic value

through long duration competitive advantages

How we build the portfolio:

A high conviction strategy with an agnostic view to the benchmark

Experienced, long-tenured research team drives bottom-up stock selection

Disciplined sell process reflecting fundamental and valuation measures

Integrated risk management embedded throughout the process

Results:

Strong excess return since inception

Long-term track record for five decades

Large Cap Growth Philosophy

Performance results are as of 2/29/20 and represent gross and net of fees. The views expressed herein are those of Jennison investment professionals at the time the comments were made. They may not be reflective of their current opinions, are subject to change without prior notice, and should not be considered investment advice. See Performance slide for additional performance information. See Portfolio Notes in the Additional Information and Disclosures section. Past performance does not guarantee future results.

Consistent philosophy and process for 50 years

10

Investment Process

There is no guarantee these objectives will be met. The views expressed herein are those of Jennison investment professionals at the time the comments were made. They may not be reflective of their current opinions, are subject to change without prior notice, and should not be considered investment advice. See Portfolio Notes in the Additional Information and Disclosures section.

Unique business models building sustainable competitive advantages

Proprietary technology/patent protection

Strong brand

Economies of scale/network effects

Speed to market/supply chain

Catalysts driving long-term growth rates well above that of the market

Disruptive technologies or services

New product cycles

Expanding addressable markets

Superior financial characteristics

Strong revenue growth

Strengthening market position

Typically healthy balance sheets with financial flexibility

Appropriate valuations

Buy Criteria

A fundamental approach to growth stock investing

Use a variety of valuation methodologies appropriate to

different industries

Understand the embedded growth rate in the company’s

current valuation

Constantly assess and re-evaluate fundamental characteristics

to reinforce valuation targets

Valuation

Analysis

11

Deep knowledge of company and industry dynamics,

competitive positioning, drivers of growth, etc.

Disciplined approach to valuation

Typical position limits

45% Sector

25% Industry

6% Security

Active review of portfolio characteristics

Investment Process

There is no guarantee these objectives will be met. The views expressed herein are those of Jennison investment professionals at the time the comments were made. They may not be reflective of their current opinions, are subject to change without prior notice, and should not be considered investment advice. See Portfolio Notes in the Additional Information and Disclosures section.

Risk

Management

Fundamentals change unfavorably

Weakening competitive position

Negative earnings revisions

Change in management

Governance issues

Stock approaches full valuation

Better risk/reward stock idea emerges

Sell Criteria

12

Risk Management

Report Frequency Who

Portfolio Matrix Price Report Daily Portfolio Managers

Performance-Strategy Level Daily Portfolio Managers

EPS, P/E, Price Changes,

Pairwise Correlation ReportsDaily Portfolio Managers

Barra Risk Reports Monthly Portfolio Managers

Factset Attribution MonthlyInvestment Team Heads &

Portfolio Managers

Portfolio Variation Report Quarterly Investment Team Heads

Compliance Guideline Monitoring Daily Compliance Team

Account Reconciliations Daily & Monthly

Operations Team

Performance Dispersion Monthly

Function

Stock

Selection

Portfolio

Management

Portfolio

Analysis

Compliance

Oversight

Operations

Oversight

All analyses are available on demand

13

Investment Guidelines

Objective:

To provide superior performance versus the Russell 1000® Growth Index over a complete investment

cycle

Water & Power Employee’s Retirement Plan Guidelines:

It is expected that the portfolio will be fully invested (<5% in cash) at all times

Equities must trade on US stock exchanges, be denominated in USD, and be domiciled and

incorporated in the US

No more than 5% shall be invested in any one issuer. If an issuer represents >5% of the Russell

1000® Growth Index, the maximum weight allowed is 125% of the benchmark weight

No derivatives without prior approval

No short sales or buying on margin

See Portfolio Notes in the Additional Information and Disclosures section for index definitions.

14

Market Overview

15

Market Update

• Before the COVID-19 outbreak, the period since the portfolios’ inception saw two

distinct environments. Early on, US equities markets were highly volatile, unsettled by

US-China trade discord; softening economic growth in the US, Europe, and China; and

geopolitical uncertainty. Companies across sectors cited trade tensions as the source of

heightened caution in planning and investing. The US political landscape was likewise

unsettled, as investigations of interference in the 2016 presidential election unfolded,

presidential impeachment hearings proceeded, and the 2020 election cycle ramped up.

• Midyear, markets responded favorably to reduced trade friction, the easing of US

monetary policy, and strong corporate earnings.

• The severe drop in equity and credit markets as the period closed reflected the

accelerating worldwide spread of COVID-19 and its massive effects on the global

economy. Global recession became almost certain with personal mobility and global

commercial activity curtailed on an unprecedented scale. Acting to mitigate the

disruption, central banks, including the Federal Reserve, and other government

authorities, announced significant emergency moves, programs, or intentions to lower

key interest rates, support liquidity, and provide fiscal stimulus.

As of 3/20.The views expressed herein are those of Jennison investment professionals at the time the comments were made. They may not be reflective of their current opinions, are subject to change without prior

notice, and should not be considered investment advice. See Portfolio Notes in the Additional Information and Disclosures section.

16

Outlook The effects of the COVID-19 outbreak and drop in energy prices are coursing through the global economy. In an already low-

growth environment, the broad slowdown, unprecedented in its suddenness and near-simultaneous onset worldwide, will

almost surely result in global recession. Rapid and aggressive fiscal and monetary action, already in process, should help

mitigate reduced economic activity. Yet the ultimate magnitude and scale of the pandemic - its human and economic tolls -

remain unknown. With testing frequency and other elements of government responsiveness varying widely from country to

country, infection and mortality rates, as well as the outbreak’s duration, are difficult to project. The experiences of China and

South Korea suggest that damage can be mitigated with rapid and comprehensive response strategies and that human and

economic activity can begin to normalize in a relatively short time. However, the experience of Italy suggests that the global

situation will get considerably worse before it gets better, and with many pandemic experts believing that the spread of the

virus in the US trails Italy by 2-3 weeks, we may be still in the early stages of the disease’s trajectory in America.

Although dire, the current situation is fundamentally different from the credit crisis of 2007-2008. Thirteen years ago,

structural economic deficiencies and a delay in addressing them made recovery protracted and painful. Today, economic

activity is being halted or curtailed to limit the spread of the virus and human suffering. Massive fiscal and monetary stimulus

measures are being implemented rapidly. Underlying economic conditions before the outbreak were largely solid, and when

the crisis subsides - when a vaccine is developed or the virus runs its seasonal course - fundamentally healthy economic

structures would be expected to help most economic activity resume fairly quickly. However, we do not expect recovery to be

uniform, and vulnerable businesses may not survive.

As fundamental investors, we examine company and industry prospects over short and long terms, working to understand

and anticipate how industries and businesses will change over time. Numerous factors, including company fundamentals,

macroeconomic conditions, market risk tolerance, and unforeseen disruptions like the current virus-related environment,

cause variability in the way equity markets price securities in the short term. We constantly assess if and how these factors

affect our investment thesis and company long-term value. We are in regular contact with our portfolio companies and will be

adjusting our estimates as warranted. We continue to have conviction in the long-term fundamental strength of portfolio

holdings.

As of 3/20.The views expressed herein are those of Jennison investment professionals at the time the comments were made. They may not be reflective of their current opinions, are subject to change without prior

notice, and should not be considered investment advice. See Portfolio Notes in the Additional Information and Disclosures section.

17

Performance Review

18

Atit Patel

Attestation

March 24, 2020

Jeremy Wolfson

Chief Investment Officer

Water & Power Employees’ Retirement Plan

111 North Hope Street, Suite 357

Los Angeles, California 90012

Re: Water and Power Employees’ Retirement Plan and the Retiree Health Benefits Fund

Dear Mr. Wolfson,

For the period from March 1st, 2019 through February 29th, 2020, to the best of our knowledge, the

Water and Power accounts managed by Jennison Associates LLC were in compliance with the

investment guidelines described in the current Statement of Investment Objectives, Goals, and

Guidelines.

Should you have questions or would like additional information, please do not hesitate to contact us at

212-421-1000 or [email protected].

Kind regards,

Atit Patel

Senior Compliance Analyst

19

Portfolio Investment Results

As of 2/29/20. Gross and Net of Fee.1Inception of Water & Power Employees’ Retirement Plan portfolio: 2/1/19. 2Inception of Water & Power Retiree Health Benefits Fund portfolio: 2/1/19. R1000G = Russell 1000® Growth Index. See PortfolioNotes in the Additional Information and Disclosures section for additional client performance information and term definitions. Past performance does not guarantee future results.


Retirement Plan1 R1000G Excess Returns

Gross Net Net

YTD to 2/29/20 -1.1% -1.1% -4.7% 3.6%

One Year 13.8% 13.5% 15.1% -1.6%

Inception (1.1 Years)

Cumulative 18.5% 18.2% 19.2% -1.1%

Annualized 17.0 16.7 17.7 -1.0

Water & Power Retiree Health Benefits Fund2 R1000G Excess Returns

Gross Net Net

YTD to 2/29/20 -1.1% -1.1% -4.7% 3.6%

One Year 13.8% 13.5% 15.1% -1.6%

Inception (1.1 Years)

Cumulative 18.5% 18.2% 19.2% -1.1%

Annualized 17.0 16.7 17.7 -1.0

Water & Power Employees’ Retirement Plan1

Water & Power Retiree Health Benefits Fund2

-1.1%

13.8%

18.5%17.0%

-1.1%

13.5%

18.2%

16.7%

-4.7%

15.1%

19.2%17.7%

-10%

-5%

0%

5%

10%

15%

20%

25%

YTD to 2/29/20 One Year Since Inception

Cumulative

Since Inception

Annualized

-1.1%

13.8%

18.5%17.0%

-1.1%

13.5%

18.2%

16.7%

-4.7%

15.1%

19.2%17.7%

-10%

-5%

0%

5%

10%

15%

20%

25%

YTD to 2/29/20 One Year Since Inception

Cumulative

Since Inception

Annualized

20

Superior Investment Results

As of 2/29/20. Net of Fee.Inception of Russell 1000® Growth Index (R1000G): 1/1/79. Inception of Large Cap Growth Equity Composite: 7/31/69. Source for line chart data: FactSet. Periods greater than 1 year are annualized unlessotherwise noted. Superior results and significant performance claims are based on a review of the strategy's long term cumulative performance history. See Large Cap Growth Equity Composite presentation andPortfolio Notes in the Additional Information and Disclosures section for additional performance information and term definitions. Past performance does not guarantee future results.

Half a century of significant outperformance

UnderperformanceOutperformance

64%

36%

Rolling 1 Year

86%

14%

Rolling 5 Years

3%

Rolling 10 Years

97%

13.5%

18,029%

11.4%

8,515%

Frequency of outperformance(since inception of R1000G)

Cumulative returns

LCG Equity Composite R1000G

Monthly Observations: 483 Monthly Observations: 435 Monthly Observations: 375

LCG Equity

Composite R1000G

Excess

-- Returns --

YTD to 2/29/20 -1.3% -4.7% 3.4%

One Year 14.6% 15.1% -0.6%

Three Years 18.2 15.7 2.6

Five Years 13.3 12.4 0.9

Ten Years 15.2 14.8 0.4

Twenty Years 5.8 4.9 0.8

Inception Composite

50.6 Years S&P 500®

Excess

-- Returns --

Annualized 11.6% 10.3% 1.3%

Cumulative 25,786.0 14,270.2 11,515.8

Inception R1000G

41.2 Years

LCG Equity

Composite R1000G

Excess

-- Returns --

Annualized 13.5% 11.4% 2.0%

Cumulative 18,029.1 8,514.6 9,514.5

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

12/78 12/81 12/84 12/87 12/90 12/93 12/96 12/99 12/02 12/05 12/08 12/11 12/14 12/17

21

Performance Attribution

Gross of Fee. Inception of Water & Power Employees’ Retirement Plan portfolio: 2/1/19. Source for data: FactSet. R1000G = Russell 1000® Growth Index. Due to attribution calculation methodology, contribution to return may

deviate from actual returns. See Portfolio Notes in the Additional Information and Disclosures section for additional performance information, GICS classification, and term definitions. Past performance does not

guarantee future results.

Inception to 2/29/20Water & Power Employees’

Retirement Plan R1000G Attribution

Average Weight

Total Return

Contributionto Return

Average Weight

Total Return

Contributionto Return

AllocationEffect

Stock Selection + Interaction

TotalEffect

Consumer Staples 7% 21% 1.31% 5% 15% 0.90% -0.07% 0.35% 28 bps

Consumer Discretionary 18 23 3.77 15 12 1.76 -0.16 1.77 161

Communication Services 13 14 1.86 12 15 1.73 0.03 -0.17 -15

Information Technology 37 30 10.32 36 34 10.84 0.14 -1.09 -96

Health Care 12 -2 0.10 14 3 0.51 0.02 -0.49 -48

Financials 4 18 0.70 4 16 0.69 -0.05 0.08 3

Real Estate 1 31 0.22 2 18 0.40 0.03 0.11 14

Industrials 5 -10 -0.47 10 3 0.74 0.68 -0.67 1

Energy 1 -32 -0.70 0 -21 -0.08 -0.27 -0.41 -68

Materials 0 -23 -0.21 2 12 0.27 0.12 -0.35 -22

Cash 2 2 0.05 -- -- -- -0.33 -- -33

Total 100% 17% 16.95% 100% 18% 17.69% 0.13% -0.88% -74 bps

22

Largest Absolute Impact - Since Inception to 2/29/20

Gross of Fee. Inception of Water & Power Employees’ Retirement Plan portfolio: 2/1/19. Source for data: FactSet. The holdings identified do not represent all of the securities purchased, sold or recommended by Jennison

during the time period shown. A complete list of holdings and how each contributed to the portfolio’s return is available upon request. See Portfolio Notes in the Additional Information and Disclosures section for

additional performance information, GICS classification, holdings information, and term definitions. Past performance does not guarantee future results.


Top Ten

Average

Weight

Total

Return

Contribution

to Return Business Description

Microsoft 4.4% 53% 189 bps A global leader in software, services, devices, and solutions

Apple 3.5 61 180 Computer, smart phone, and personal device maker; service business subscriptions

Tesla 1.7 105 150 Premier electric vehicle manufacturer

MasterCard 4.6 35 148 No. 2 payment system in the US

Visa 4.3 33 132 No. 1 payment system in the US

NVIDIA 1.8 80 108 Semiconductor maker for key growth markets: gaming, automotive, high-performance computing, cloud, enterprise

Alphabet 6.1 18 107 Globally dominant internet platforms (Search, YouTube, Maps)

Adobe 2.8 36 91Subscription-based provider of digital services in two of the fastest-growing markets in enterprise software - content creation

and digital marketing

Estee Lauder 1.9 33 63Makes skin care, makeup, fragrance, and hair care products, which it sells through high-end stores, specialty retailers, and

online in more than 150 countries

Costco 2.3 30 63 Warehouse club retailer

Bottom Ten

Boeing 2.3% -25% -57 bps World’s largest aerospace company and a leading manufacturer of commercial jetliners and defense, space, and security systems

Sage Therapeutics 0.5 -63 -49 Biotech company focused on treatment of depression, movement and other mood disorders

Concho 0.4 -42 -37 Independent oil and natural gas company, with core operations in the Permian Basin in West Texas and Southeast New Mexico

EOG 0.7 -24 -33 Exploration and production company with significant land positions in emerging US shale oil growth sites

UnitedHealth 0.3 -12 -22 One of the largest managed care providers in the United States

Albemarle 0.4 -23 -21 Top global producer of lithium

Exact Sciences 0.4 -17 -19 Makes a non-invasive molecular screening tool for colorectal cancer

Alexion 1.2 -15 -19 Develops drugs for treatment of rare autoimmune and inflammatory disease

Union Pacific 0.1 -13 -16 Leading rail freight carrier

BioMarin 0.9 -7 -14 Develops pharmaceuticals for rare, often genetic, diseases that affect small populations

23

Water & Power Employees’ Retirement Plan Portfolio

Performance Commentary

As of 2/29/20. Inception of Water & Power Employees’ Retirement Plan portfolio: 2/1/19. The holdings identified do not represent all of the securities purchased, sold or recommended by Jennison during the time period

shown. A complete list of holdings and how each contributed to the portfolio’s return is available upon request. See Portfolio Notes in the Additional Information and Disclosures section for additional

performance information, GICS classification, holdings information, index definitions, and term definitions. Past performance does not guarantee future results.

From the portfolio’s performance inception on February 1, 2019, through February

29, 2020, the Russell 1000® Growth Index rose 17.7%.

Among the benchmark’s major sectors, only information technology outperformed the overall

benchmark, while communication services, consumer discretionary, and health care underperformed.

Energy declined more than 20%.

The portfolio advanced 17.0% (gross of fee) in the period.

Stock selection contributed positively to absolute and relative performance in consumer discretionary,

consumer staples, real estate, and financials.

Information technology holdings posted a 30%-plus aggregate gain but lagged the benchmark sector.

Energy, health care, and materials positions detracted from absolute and relative performance.

Key contributors to positive return included Microsoft, Apple, and Tesla.

Key detractors included Boeing, Sage Therapeutics, and Concho Resources.

24

Transactions - YTD to 2/29/20

Five largest positions initiated, eliminated, increased or decreased during the period shown, based on each transaction’s value (net of costs) divided by the average market value of the portfolio. If the number of transactions equals less than five (per category) all transactions are shown. See Portfolio Notes in the Additional Information and Disclosures section for holdings information.

New

Union Pacific

ON Semiconductor

Eliminated

Abbott

Parker-Hannifin

Alexion

Walt Disney

Xilinx


Increased

Uber

Constellation

Netflix

Workday

NVIDIA

Decreased

MasterCard

FleetCor

JPMorgan Chase

ServiceNow

Qualcomm

25

Portfolio Review and Characteristics

26

Security

% of

Portfolio

3-Yr Earnings

Growth (E)

P/E

2020E

Water & Power

Employees’

Retirement Plan

Purchased

Jennison Large Cap

Growth Equity*

Purchased

Alphabet 6.3% 17% 24x 2019 2004

Amazon.com 5.7 25 75 2019 2007

Microsoft 5.1 13 27 2019 2015

Salesforce.com 4.8 20 27 2019 2009

Visa 4.2 18 33 2019 2011

Netflix 4.2 55 54 2019 2013

MasterCard 4.0 18 40 2019 2009

Apple 3.9 10 19 2019 2004

NIKE 3.5 15 28 2019 2018

Tesla 3.5 25 64 2019 2013

45.4%

Largest Equity Holdings

As of 2/29/20.*Information is supplemental to the Large Cap Growth Equity Composite presentation as provided in the Appendix. Purchased = The year in which the security was most recently purchased and consistently held. See Portfolio Notes in the Additional Information and Disclosures section for holdings information and term definitions.


27

As of 2/29/20.See Portfolio Notes in the Additional Information and Disclosures section for GICS classification, holdings information, and term definitions.

Portfolio HoldingsWater & Power Employees’ Retirement Plan

ESTIMATED 3-YEAR NORMALIZED EARNINGS GROWTH

WEIGHT IN PORTFOLIO (%) >20% 15-20% <15%

Consumer Staples 7.4

Costco 2.3

Constellation 1.9

Estee Lauder 1.8

Mondelez Int’l 1.4

Consumer Discretionary 19.6

Amazon.com 5.7 NIKE 3.5 Home Depot 2.6

Tesla 3.5 Lululemon 1.5 Marriott Int'l 1.7

Chipotle Mexican Grill 1.0

Communication Services 13.7

Netflix 4.2 Alphabet 6.3

Facebook 3.2

Information Technology 38.5

NVIDIA 2.8 Salesforce.com 4.8 Microsoft 5.1

Splunk 1.9 Visa 4.2 Apple 3.9

Workday 1.8 MasterCard 4.1 Qualcomm 0.9

ServiceNow 0.9 Adobe 2.9 ON Semiconductor 0.7

Twilio 0.8 PayPal 1.3

Square 0.6 FleetCor 1.2

Coupa Software 0.5

Health Care 9.9

Vertex 1.0 Intuitive Surgical 1.2 Eli Lilly 1.2

BioMarin 0.9 Illumina 1.1 Danaher 1.1

Exact Sciences 0.7 DexCom 0.9

Guardant Health 0.3 Edwards Lifesciences 0.7

Zoetis 0.6

Financials 3.1

S&P Global 1.4

Goldman Sachs 1.2

JPMorgan Chase 0.5

Real Estate 0.8

American Tower 0.8

Industrials 4.6

Uber 1.7 Boeing 1.8

Union Pacific 1.2

EQUITY 97.5

CASH 2.5

TOTAL 100.0

TOTAL MARKET VALUE $740.3MM 26.8 40.2 30.6

28

As of 2/29/20.See Portfolio Notes in the Additional Information and Disclosures section for GICS classification, holdings information, and term definitions.

Portfolio HoldingsWater & Power Retiree Health Benefits Fund

ESTIMATED 3-YEAR NORMALIZED EARNINGS GROWTH

WEIGHT IN PORTFOLIO (%) >20% 15-20% <15%

Consumer Staples 7.4

Costco 2.3

Constellation 1.9

Estee Lauder 1.8

Mondelez Int’l 1.4

Consumer Discretionary 19.6

Amazon.com 5.6 NIKE 3.5 Home Depot 2.6

Tesla 3.5 Lululemon 1.5 Marriott Int'l 1.7

Chipotle Mexican Grill 1.0

Communication Services 13.7

Netflix 4.2 Alphabet 6.4

Facebook 3.2

Information Technology 38.5

NVIDIA 2.8 Salesforce.com 4.8 Microsoft 5.1

Splunk 1.9 Visa 4.2 Apple 3.9

Workday 1.8 MasterCard 4.1 Qualcomm 0.9

ServiceNow 0.9 Adobe 2.9 ON Semiconductor 0.7

Twilio 0.8 PayPal 1.3

Square 0.6 FleetCor 1.2

Coupa Software 0.5

Health Care 9.9

Vertex 1.0 Intuitive Surgical 1.2 Eli Lilly 1.2

BioMarin 0.9 Illumina 1.1 Danaher 1.1

Exact Sciences 0.7 DexCom 0.9

Guardant Health 0.3 Edwards Lifesciences 0.7

Zoetis 0.7

Financials 3.1

S&P Global 1.4

Goldman Sachs 1.2

JPMorgan Chase 0.5

Real Estate 0.8

American Tower 0.8

Industrials 4.6

Uber 1.7 Boeing 1.8

Union Pacific 1.2

EQUITY 97.5

CASH 2.5

TOTAL 100.0

TOTAL MARKET VALUE $126.4MM 26.7 40.2 30.6

29

Summary of Our Highly Valued Relationship with


Account Strategy Inception Date

Initial Funding

Amount ($M)

Since Inception

Net Flows ($M)

Current AUM as

of 2/29/20 ($M)


Retirement Plan

Large Cap

Growth Equity1/16/19 $619.2 -$29.6 $740.3

Water & Power Retiree Health

Benefits Fund

Large Cap

Growth Equity1/16/19 $104.0 -$2.9 $126.4

Total $723.2 -$32.5 $866.6

As of 2/29/20, unless otherwise noted.Due to rounding, individual fund assets may not sum to total AUM shown. Past performance does not guarantee future results.

30

3

6

2

-1

-4

0

-2-4

0

-1

2

-10%

-5%

0%

5%

10%

Consumer

Staples

Consumer

Discretionary

Comm.

Services

Information

Technology

Health Care Financials Real Estate Industrials Energy Materials Cash

Sector Allocation

+Over/-Under Weight (Portfolio vs. R1000G)

As of 2/29/20.R1000G = Russell 1000® Growth Index. See Portfolio Notes in the Additional Information and Disclosures section for GICS classification and holdings information.

7

20

14

39

10

31

5

0 02

0%

10%

20%

30%

40%

50%

Consumer

Staples

Consumer

Discretionary

Comm.

Services

Information

Technology

Health Care Financials Real Estate Industrials Energy Materials Cash


31

Other Characteristics

Number of Holdings: 49

Cash: 2.5%

Dividend Yield: 0.6%

Portfolio Characteristics

As of 2/29/20.Dollar-Weighted Median EPS Growth shown. S&P 500® EPS are estimates determined by Jennison investment professionals based on qualitative and quantitative factors. R1000G = Russell 1000® Growth Index. See Portfolio Notes in the Additional Information and Disclosures section for term definitions.


R1000G

S&P 500®

14

19

1312

9 8

0%

5%

10%

15%

20%

2019E 2020E

EPS Growth

34

272522

18 17

0

5

10

15

20

25

30

35

40

2019E 2020E

P/E

136123

189

159

0%

25%

50%

75%

100%

125%

150%

175%

200%

2019E 2020E

Relative P/E

340

76

361

12

265

21

04080

120160200240280320360400

Weighted Average Median

Market Capitalization ($Billion)

32

Portfolio Characteristics & Risk Measures and Controls

As of 2/29/20.Source for data: FactSet. ^Data is for the last twelve months. ~Data is from 3/1/15-2/29/20. *Information is supplemental to the Large Cap Growth Equity Composite presentation as provided in the Appendix. R1000G = Russell 1000® Growth Index. See Large Cap Growth Equity Composite presentation and Portfolio Notes in the Additional Information and Disclosures section for index and term definitions. Past performance does not guarantee future results.

Holdings Based^ LCG Rep Account* R1000G

ROE 23.4% 30.8%

Price/Book 8.7 7.8

Price/Sales 5.1 3.3

Price/Cash Flow 23.8 17.7

Annualized Turnover 42% --

Risk Adjusted Returns~ LCG Composite R1000G

Annualized Standard Deviation 14.8% 13.0%

Tracking Error 4.36% --

Relative Volatility 1.14x --

R Squared 92% 100%

Correlation 0.96 --

Beta 1.09 1.00

Alpha 0.01 0.00

Sharpe Ratio 0.84 0.87

Information Ratio 0.27 --

Jensen Alpha 0.25 --

Treynor Ratio 11.45 11.31

Value at Risk -8.6 -8.6

60-month average cost per share as of 2/29/20: $0.032

33

Risk/Return

Data from 3/1/15 to 2/29/20. Gross of Fee.Source for data: FactSet. See Large Cap Growth Equity Composite presentation and Portfolio Notes in the Additional Information and Disclosures section for index and term definitions. Past performance does not guarantee future results.

Large Cap Growth Equity Composite Russell 1000® Growth Index

34

Fee Schedule

35


Fee Schedule

The above schedule is offered for separately managed accounts with Large Cap Growth clients. Minimum institutional separate account size is typically $50 million.Minimum institutional defined contribution separate account size is typically $100 million. The term assets managed includes all income receivables and incomeaccruals. Jennison reserves the right to waive minimum account sizes at our discretion.

If assets under management are greater than or equal to $500 million, the annual fee schedule

shall be as follows:

25bps on all assets

If assets under management fall under $500 million, the annual fee schedule shall be as follows:

75bps on first $10 million assets managed;

50bps on the next $30 million;



22bps on the balance.

36

Additional Information

and Disclosures

37

Additional Information

Significant Firm Changes

There were no significant firm changes.

Team Changes

Seth Ginns, who had been with the Large Cap Growth team since 2002, left the firm at the end of

2019 to join a small firm that manages cryptocurrency/block chain/fin tech assets. The energy,

diversified industrials, and select consumer companies Seth covered continue to be covered by other

Jennison analysts.

As of 2/29/20.See Portfolio Notes in the Additional Information and Disclosures section for GICS classification.

38

Blair A. Boyer, Managing Director, Co-Head of Large Cap Growth EquityBlair is the Co-Head of Large Cap Growth Equity and a large cap growth equity portfolio manager. He joined Jennison in 1993as an international equity analyst and portfolio manager. He joined the large cap growth team as a portfolio manager in2003. Prior to Jennison, Blair managed international equity portfolios for five years at Bleichroeder. Before that, he was aresearch analyst and then a senior portfolio manager at Verus Capital. Blair received a BA in economics from BucknellUniversity and an MBA from New York University's Stern School of Business.

Michael Del Balso, Managing DirectorMichael is a large cap growth equity portfolio manager. He joined Jennison in 1972 as a research analyst and became aportfolio manager in 1999. Previously, he was a vice president and portfolio manager for four years at White, Weld &Company. Michael received a BS in industrial administration from Yale University and an MBA from Columbia University.

Biographies - Large Cap Growth Equity Portfolio Management

Spiros Segalas, Founder, President & Chief Investment OfficerOne of the founders of Jennison in 1969, Spiros “Sig” Segalas has built the firm into an institutional investment manager witha range of equity and fixed income investment strategies and assets under management of more than $175 billion. He hasmanaged Jennison client portfolios over the past half century. Sig began his investment career at Bankers Trust as a researchanalyst, before managing client assets. Prior to Bankers Trust, he worked in the shipping and construction industries andserved as an officer in the US Navy. Sig received a BA in economics from Princeton University.

Kathleen A. McCarragher, Managing Director, Head of Growth EquityKathleen is the Head of Growth Equity and a large cap growth equity portfolio manager. She joined Jennison in 1998. Priorto Jennison, she spent six years with Weiss, Peck & Greer, where she was a managing director and the director of large capgrowth equities. Previously, she spent 10 years with State Street Research & Management. Kathleen received a BBA,summa cum laude, in finance and economics from the University of Wisconsin-Eau Claire and an MBA from HarvardBusiness School.

39

Rebecca Irwin, Managing DirectorRebecca is a large cap growth portfolio manager and research analyst. She joined Jennison in 2006. Previously, she worked asa health care analyst at Viking Global Investors. In the decade before Viking, she was with UBS and Salomon Smith Barney.Before that, she was a corporate associate at Fried, Frank, Harris, Shriver & Jacobson. Rebecca received a BA in economicsfrom Queen’s University at Kingston, an LLB from the University of Toronto, and an LLM from Harvard Law School.

Natasha Kuhlkin, CFA, Managing DirectorNatasha is a large cap growth equity portfolio manager and research analyst. She joined Jennison in 2004. Prior to Jennison,she was an equity research analyst for five years, first at Evergreen Investment Management then at Palisade CapitalManagement. Natasha received a BS, magna cum laude, in accounting from Binghamton University.

40

Biographies - Global Equity Investment Team

Thomas F. Davis, Managing DirectorTom joined Jennison in 2011 as a global equity portfolio manager. He was previously with Loomis Sayles for 11 years, mostrecently as a co-portfolio manager of global equity portfolios. He began his tenure at Loomis as a research analyst. Prior toLoomis, Tom was a global equity research analyst at Putnam Investments. Tom received a BA in economics from DartmouthCollege and an MBA from Duke University.

Mark B. Baribeau, CFA, Managing DirectorMark is the Head of Global Equity and a global equity portfolio manager. He joined Jennison in 2011. He was previously withLoomis Sayles for more than 21 years, where he was a global equity and large cap growth portfolio manager. Prior to Loomis,he was an economist at John Hancock Financial Services. Mark received a BA in economics from the University of Vermontand an MA in economics from the University of Maryland.

41

Biographies - Equity Research

David Chan, CFA, Managing DirectorDavid is a health sciences equity portfolio manager and research analyst. He joined Jennison in 1992. He was previously withthe Boston Consulting Group, where he was a team leader and consultant on projects in a wide variety of industries, but with aspecial focus in the health care area. David received a BA in biochemistry from Harvard University and an MBA from ColumbiaUniversity.

N. Owuraka Koney, CFA, Managing DirectorOwuraka is an equity research analyst. He joined Jennison in 2007. Prior to Jennison, he worked as an equity researchassociate covering the aerospace and defense sector at UBS. Owuraka received a BA in economics and political science fromWilliams College.

Erika Klauer, Managing DirectorErika is a technology equity portfolio manager and research analyst. She joined Jennison in 2001. Prior to Jennison, she wasdirector of global semiconductor research at Deutsche Bank Alex. Brown and a senior semiconductor equipment analyst atSalomon Brothers. She began her career at Paine Webber. Erika received a BA in English and philosophy from GeorgetownUniversity.

Debra Netschert, Managing DirectorDebra is a health sciences equity portfolio manager and research analyst. She joined Jennison in 2008. Prior to Jennison, sheworked at Magnetar Capital where she was a senior analyst responsible for health care coverage. Prior to Magnetar, sheworked at Amaranth Advisors and Lazard Capital Markets. She began her research career as an associate biotechnologyanalyst at UBS. She received a BS in health science and MS in physical therapy from Boston University.

42

Steven M. Postal, CFA, Managing DirectorSteven is an equity research analyst. He joined Jennison in 2016. Before Jennison, he worked as a research analyst atEverPoint Asset Management covering medical devices and health care services companies. Previously, he was a healthcareanalyst and portfolio manager at GE Asset Management. Prior to GE, he worked at Lehman Brothers as a healthcare supplychain analyst and began his career as an associate research analyst at Lehman. Steven received a BBA from GeorgeWashington University.

Nicolas Rubinstein, Managing DirectorNick is a technology equity portfolio manager and research analyst. He joined Jennison in 1997. He was previously an analystfor the technology corporate finance group at Morgan Stanley, where he focused on the financing needs and strategicpositioning of companies in high-technology industries. Prior to Morgan Stanley, Nick was an analyst for the technologycorporate finance group at Paine Webber. He received a BA with honors in international relations from Brown University.

Andrew M. Tucker, CFA, Managing DirectorAndrew is a financial services equity portfolio manager and research analyst. He joined Jennison in 1997. Prior to Jennison, hewas an equity analyst and portfolio manager at the Wachovia Bank of North Carolina. Prior to that, he was a corporate loancredit officer. He began his career as a financial analyst in Wachovia's mergers and acquisitions group. Andrew graduatedmagna cum laude with a BSBA from Washington and Lee University.

David A. Ravera, Managing DirectorDavid is an equity research analyst. He joined Jennison in 2000. Previously, he was an equity analyst at Putnam Investmentsand Paine Webber. He received a BA with honors in economics from Trinity College, graduating Phi Beta Kappa, and an MBAfrom the Tuck School of Business at Dartmouth College.

43

Christina Zhang, RN, Managing DirectorChristina is an equity research analyst. She joined Jennison in 2013. She was previously with Barclays Capital for three yearsas a biotechnology and life sciences tools and diagnostics analyst. She received a BS in economics with a concentration inhealth care management from the Wharton School of the University of Pennsylvania and a BS in nursing from the University ofPennsylvania School of Nursing.

Alison Yang, MD, Managing DirectorAlison is an equity research analyst. She joined Jennison in 2014. She was previously a senior analyst covering biotechnologyand pharmaceuticals at JP Morgan Asset Management and a team analyst at Barclays Capital. She began her career at OliverWyman Group’s health and life sciences practice. She received a BS in molecular biochemistry and biophysics from YaleUniversity and an MD from Harvard Medical School.

44

Biographies - Client Relationship Management

Richard K. Mastain, Managing DirectorRichard is a portfolio specialist and a client relationship manager for Jennison's large cap growth strategies. He joined Jennisonin 2000. Prior to Jennison, Richard spent seven years at Dreman Value Advisor/Zurich Investment Management, where he wasresponsible for client service and marketing. He received a BA in history from Bowdoin College.

Peter H. Reinemann, CFA, Managing DirectorPeter is a relationship manager. He joined Jennison in 1992. Prior to joining Jennison, Peter was a vice president at ParibasAsset Management where he was responsible for developing the firm's global asset allocation, global fixed income, and regionalequity asset management activities in North America. He graduated cum laude with a BA in philosophy from Boston University.

45

Notes

Unless otherwise noted, all non-performance portfolio data provided is based on a representative Jennison Large Cap Growth Equity portfolio. The representative portfolio

was selected because it is in the composite and we believe the holdings, characteristics and risk profile are representative of this strategy.

These materials may not take into account all individual client circumstances, objectives or needs. Jennison makes no representations regarding the suitability of any

securities, financial instruments or strategies described in these materials for particular clients or prospects.

These materials are not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment

management services. These materials do not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that

any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. It should not be

assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in

the future will be profitable or will equal the investment performance of the securities discussed herein.

These materials do not purport to provide any legal, tax or accounting advice.

For ERISA Clients and Prospects - These materials are for informational or educational purposes. In providing these materials, Jennison is not acting as your fiduciary and is

not giving advice in a fiduciary capacity.

Portfolio

Unless otherwise noted, source for Russell® Indices data: Mellon Analytical Solutions or FactSet. Source for S&P 500® Index data: Standard & Poor’s or FT Interactive Data Corporation.

Client Performance Information: Performance results are calculated in US dollars and reflect reinvestment of dividends and other earnings. Gross of fee performance is presented before

custodial and Jennison’s actual advisory fees but after transaction costs. Where provided, net of fee performance is presented net of Jennison’s actual advisory fees and transaction costs.

Certain third party information in this document has been obtained from sources that Jennison believes to be reliable as of the date presented; however, Jennison cannot guarantee the

accuracy of such information, assure its completeness, or warrant such information will not be changed. Jennison has no obligation to update any or all such third party information.

Due to rounding, calculations based on the returns provided may not result exactly in Excess Returns shown. Excess Return is the additional return generated by the portfolio or composite

relative to the market index.

Excess returns for the value add chart are calculated using the rolling 1-year, 5-year, and 10-year annualized composite return minus the rolling 1-year, 5-year, and 10-year annualized index

return.

Due to rounding, percentages may not sum to 100% or totals shown. If shown, the cash percentage represents trade date cash and cash equivalents.

The Russell 1000® Growth Index (R1000G) contains those securities in the Russell 1000 Index with a greater-than-average growth orientation. Companies in this index tend to exhibit higher

price-to-book and price-to-earnings ratios. The S&P 500® Index provides a broad indicator of stock price movements. The financial indices referenced herein are provided for informational

purposes only. When comparing the performance of a manager to its benchmark(s), please note that the manager's holdings and portfolio characteristics may differ from those of the

benchmark(s). Additional factors impacting the performance displayed herein may include portfolio-rebalancing, the timing of cash flows, and differences in volatility, none of which impact the

performance of the financial indices. Financial indices are unmanaged and assume reinvestment of dividends but do not reflect the impact of fees, applicable taxes or trading costs which may

also reduce the returns shown. All indices referenced in this presentation are registered trade names or trademark/service marks of third parties. References to such trade names or

trademark/service marks and data is proprietary and confidential and cannot be redistributed without Jennison's prior consent. Investors cannot directly invest in an index.

GICS Classification: The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI, Inc. (“MSCI”) and Standard & Poor’s

Financial Services LLC (“S&P”) and is licensed for use by Jennison Associates LLC “as is”. As of October 1, 2009, Jennison Associates LLC (“Jennison”) does not reclassify securities classified

by S&P/MSCI GICS. Only securities not classified by S&P/MSCI GICS will be classified by Jennison. Therefore, this report may include companies that have been classified by S&P/MSCI GICS or

classified by Jennison. Companies classified by Jennison are not sponsored by the S&P/MSCI GICS classification system. Jennison has excluded the Utilities sector from data charts as it

considers the sector’s small weighting within the Russell 1000® Growth Index non-material. Companies within the sector typically do not possess the fundamental attributes that meet the

strategy’s requirements for investment. The Portfolio does not hold securities in the sector.

46

Notes

Portfolio (continued)

Average Weight is the dollar value (price times the shares held) of the security or group, divided by the total dollar value of the entire portfolio displayed as a percentage. It is calculated as the

simple arithmetic average of daily values. Total Return is the price change of a security or group including dividends accrued over the report period or the "in-portfolio return" which includes

only the time period that each security was in the portfolio. Contribution to Return is the contribution of a security or group to the overall portfolio return. It is calculated as the security weight

multiplied by the daily security return linked daily across the reporting period. Allocation Effect is the portion of portfolio excess return that is attributable to taking different group bets from the

benchmark. (If either the portfolio or the benchmark has no position in a given group, allocation effect is the lone effect.) A group’s allocation effect equals the average percent capitalization of

the portfolio’s group minus the average percent cap of the benchmark’s group times the total return of the benchmark group minus the total return of the benchmark. Stock Selection is the

portion of portfolio excess return attributable to choosing different securities within groups from the benchmark. A group’s security selection effect equals the average weight of the

benchmark’s group times the total return of the portfolio’s group minus the total return of the benchmark’s group. It is calculated as the security weight multiplied by the daily security return

linked daily across the reporting period. Total Effect is the sum of Allocation Effect and Stock Selection. The total effect represents the opportunity cost of what was done in a group relative to

the overall portfolio. It is not just the difference between percent contribution in the portfolio and benchmark. At the overall portfolio level, the two numbers are equal. At the group level, they

can be different. This information should not be considered as a recommendation to purchase or sell a particular security and there is no assurance that certain securities will remain in or out

of the portfolio. These sectors, stock selections and holdings may change at any time and may not represent current or future sectors or stock selections.

Holdings Information: The securities discussed do not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio holdings.

Please note that certain securities of foreign issuers may be held as ADRs. Additionally, different classes of securities from the same issuer may be combined for illustrative purposes. Please

see Portfolio Holdings page for a complete list of the securities held in the portfolio.

The Estimated 3 Yr Growth Rates are expected earnings based on long-term market trends, rather than short-term considerations. They are determined by Jennison investment professionals

and are subject to periodic change.

Portfolio EPS are estimates and are based on Jennison and I/B/E/S estimates. Russell 1000® Growth Index EPS are I/B/E/S data. Portfolio and Russell 1000® Growth Index earnings growth

rates are calculated using dollar weighted median methodology and P/Es are calculated using weighted harmonic average. S&P 500® EPS are estimates determined by Jennison investment

professionals based on quantitative and qualitative factors. Estimates are subject to change without prior notice. Although Jennison believes that the expectations reflected in such forward

looking statements are based on reasonable assumptions, actual results may differ materially from those projected.

Jennison’s calculations as noted above may include subjective factors and it is possible that each of these estimates may differ from data published elsewhere by these third parties. The EPS

and P/E illustrations are not sponsored by, endorsed by or prepared by Russell® or Standard & Poor’s.

GDP data are provided by the US Department of Commerce Bureau of Economic Analysis.

47

Glossary of Investment Terms

48

Glossary of Investment Terms

Alpha: 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.

Beta: Measures the volatility of the composite relative to the chosen risk market index.

Correlation: A statistical measure of the degree to which the movements of two variables are related.

Dividend Yield: The ratio of a security’s dividend payment relative to its share price.

Information Ratio: The excess return of the composite over the market index divided by the Tracking Error.

Jensen Alpha: A risk-adjusted performance measure that is the excess return of a portfolio over and above that predicted by the CAPM, given the portfolio's beta and the average market return.

Jensen Alpha measures the value added of an active strategy.

Price to Book Ratio: Price to Book Ratio is the ration of a stock’s price to its book value per share.

Price to Sales Ratio: Price to Sales Ratio is the ratio of a stock’s price to its per-share sales.

R Squared: Used in style analysis to determine how much information about the composite return series the style benchmark has been able to capture. The higher the R-squared, the better

the benchmark.

Relative Volatility: It's a measure of the volatility in comparison to another asset or index

ROE: The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates

with the money shareholders have invested.

Sharpe Ratio: The measure of risk adjusted returns. It is a risk-adjusted measure developed by Professor William F. Sharpe, which 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. It is the performance of the Composite less the performance of the risk-free instrument divided by the standard deviation of the Composite.

Standard Deviation: A statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution. The annualized standard

deviation shows how far away numbers on a list are from their averages and takes that number and multiplies it by the square root of the frequency. For example, monthly frequency would

multiply the standard deviation * the square root of 12 ( 3.4641). The greater degree of dispersion, the greater degree of risk.

Tracking Error: The standard deviation of the difference in monthly returns between the composite and the market index.

Treynor Ratio: Measures reward per unit of beta risk. The number 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.

Turnover: The percentage of a portfolio that is sold in a particular month or year.

Value at risk (VaR): Quantifies the level of financial risk within a firm, portfolio or position over a specific time frame.

49

Large Cap Growth Equity CompositeDecember 31, 2009 to December 31, 2019

1. Jennison Associates LLC (Jennison or the Firm) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in

compliance with the GIPS standards. Jennison has been independently verified for the period from January 1, 1993 through December 31, 2018. A firm that claims compliance

with the GIPS standards must establish policies and procedure for complying with all applicable requirements of the GIPS standards. Verification provides assurance on whether

the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been

designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. The Large Cap Growth Equity Composite (Composite) has been examined for

the period from January 1, 1993 through December 31, 2018. The verification and performance examination reports are available upon request.

2. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained

herein.

3. Jennison Associates LLC is an investment adviser registered under the Investment Advisers Act of 1940, as amended, and an indirect wholly owned subsidiary of Prudential

Financial, Inc. (Parent). Registration does not imply a certain level of skill or training. Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential

plc, a company incorporated in the United Kingdom. On January 1, 2006, Jennison redefined the Firm to include JMA assets, for all periods after January 1, 2006.

4. The Composite inception date was July 31, 1969 and the creation date under the GIPS standards was January 1, 1993. The Large Cap Growth Equity strategy seeks long-term

growth of capital by investing primarily in stocks of large cap companies we believe, based on fundamental analysis, have sustainable above-average earnings growth. Valuations

of these companies may likewise be above the market average. Accounts in this Composite typically have approximately 50-70 holdings. Starting January 1, 2018, accounts that

cannot hold both foreign ordinary securities and unlisted ADRs, which were deemed a material part of the strategy, are not included in the composite. A list of Jennison’s

composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

5. Performance results are calculated in US dollars and reflect reinvestment of dividends and other earnings. Gross of fee performance is presented before custodial and

Jennison’s actual advisory fees but after transaction costs. Net of fee performance is presented net of Jennison’s actual advisory fees and transaction costs. Returns are gross of

reclaimable withholding taxes, if any, and net of non-reclaimable withholding taxes. For a large cap growth equity separate account the fee schedule offered to institutional

clients is as follows: 0.75% on first $10 million of assets managed; 0.50% on next $30 million; 0.35% on next $25 million; 0.25% on next $335 million; 0.22% on the balance.

Actual advisory fees charged and actual account minimum size may vary by account due to various conditions described in Jennison Associates LLC’s Form ADV.

6. The data presented represents past performance and does not guarantee future results. Performance results fluctuate, and there can be no assurances that objectives will be

achieved. Client’s principal may be at risk under certain market conditions.

7. The annual composite dispersion presented is an equal weighted standard deviation calculated for the accounts in the composite for the entire year. For annual periods with

less than 6 accounts included for the entire year, dispersion is not presented. The three-year annualized ex-post standard deviation is not required to be presented prior to 2011

or when 36 monthly composite returns are not available.

8. The Benchmark for the Strategy is the Russell 1000® Growth Index. Prior to April 1, 2018, the S&P 500® Index and Lipper Large Cap Growth Funds Index were presented as

secondary benchmarks. The benchmarks were removed as it was determined that the primary benchmark is considered most representative of the strategy.

Year Ended

Composite Gross of Fee Returns (%)

Composite Net of Fee

Returns (%)

Russell 1000® Growth Index Returns (%)

Composite Gross of Fee 3-Yr Std Dev

(%)

Russell 1000® Growth Index

3-Yr Std Dev (%)

Composite Assets

($ in Millions) # of

Accounts Internal Dispersion (Equal-Weighted)

Total Firm Assets

($ in Millions) 2010 12.51 12.20 16.71 20.97 22.11 36,625.9 97 0.52 123,901.0

2011 1.14 0.87 2.64 17.60 17.76 35,182.1 95 0.32 135,729.3

2012 16.79 16.49 15.26 17.03 15.66 41,370.1 90 1.28 156,514.8

2013 38.26 37.91 33.48 13.76 12.18 52,229.8 87 0.88 175,312.2

2014 10.60 10.33 13.05 11.90 9.59 55,316.8 88 0.53 184,048.8

2015 11.68 11.40 5.67 12.01 10.70 56,974.7 96 0.33 174,180.3

2016 -0.12 -0.37 7.08 13.36 11.15 50,325.6 90 0.63 159,780.6

2017 37.38 37.04 30.21 12.52 10.54 59,815.7 87 0.66 175,421.4

2018 -0.17 -0.41 -1.51 14.17 12.13 52,801.4 86 0.68 160,734.1

2019 33.81 33.49 36.39 14.79 13.07 60,391.3 79 0.67 173,202.0

investment manager summary...may 20, 2020 · dominion resources, inc. ericsson inc. hirtle,...

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