FOR INSTITUTIONAL USE ONLY
MFS® INTERNATIONAL VALUE EQUITY
Presented to
Los Angeles Department of Water and Power25 October 2017
31540.4exp30Sep18
299-I-CT-IV-25Oct17.iiMFS® International Value Equity
Table of contentsContents 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
1299-I-CT-IV-25Oct17.1MFS® International Value Equity
MFS corporate update
Assets under management (USD) as of August 31, 2017:Total firm AUM: $468 billion
Total MFS International Value Equity strategy AUM: $37.4 billion
Personnel Updates: August 2017
MFS announced in August that Carol Geremia, who is co-head of Global Distribution and president of MFS Institutional Advisors, Inc., will becomehead of Global Distribution and president of MFS Investment Management effective January 1, 2018. Carol brings to the role 33 years of experiencein business development, management, and enhancing client relationships with the firm. She has been leading MFS' global institutional businesssince 2004. Carol, who joined MFS in 1984, will continue to serve as a member of the MFS Management Committee.
May 2017 Janine Comstock joined MFS on May 1, 2017 as senior vice president and chief security officer. She oversees cyber and physical security andmanages the information security program at the firm. Previously, she worked at Transamerica and Aegon N.V. spanning fourteen years where sheserved as chief information security officer for the Americas and later global chief information security officer. She began her career in the financialservices industry in 1993 in IT and security operations. Throughout her professional career she has served in senior executive leadership roles at aNorth American telecommunications company as well as publishing and insurance multinational companies where she successfully managedsecurity strategy, risk and operations to safeguard business assets and operations. Ms. Comstock is a Certified Information Systems SecurityProfessional (CISSP).
2299-I-CT-IV-25Oct17.2MFS® International Value Equity
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.
3299-I-CT-IV-25Oct17.3MFS® International Value Equity
Business profile (USD)461 billion total MFS AUM
Global equities (21%)
EAFE/International equities (21%)
US equities (34%)
Regional equities (6%)
Fixed Income (13%)
Multi-Strategy (6%)
Asia Pacific (37%)
EMEA (22%)
North America (41%)
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 95.6 billionEAFE/international equities 96.6 billionUS equities 156.0 billionRegional equities 29.1 billionFixed Income2 58.4 billionMulti-strategy/Other 25.6 billion
Assets
As of 30-Jun-17.1 Data is rounded to the nearest figure. 2 Total fixed income assets, including non-dedicated fixed income mandates are 80 billion USD.3 Represents global clients in institutional vehicles only. 28452.13 ex31OCT17
4299-I-CT-IV-25Oct17.4MFS® International Value Equity
MFS investment professionals
Our experienced investment team and collaborative culture distinguish our approach to investing
As of 30-Jun-17.Years = average years industry experience.
1 Member of Investment Management Committee.
46 equity portfolio managers
22 years
President, Chief Executive Officer and Chief Investment Officer – Michael Roberge1
Vice Chairman – David Antonelli1
31 fixed income analysts 17 years
63 equity analysts 14 years
9 quantitative analysts 14 years
24 fixed income portfolio managers
25 years
8 quantitative portfolio managers
22 years
Portfolio management(78)
Research team(103)
Trading(31)
Trading Analytics(2)
Gregory Heller1, Director of Global Fixed Income Trading Brenda Farley1, Director of Global Equity Trading14 equity traders – 18 years
17 fixed income traders – 20 years
Jeffrey Estella1, Director of Trading Analytics1 trading analytics analyst – 20 years
Executive ChairmanRobert Manning1
9 fixed income associates 4 years
19 equity associates 4 years
14 quantitative associates 10 years
Research/investmentassociates
(42)
TOTAL256
5299-I-CT-IV-25Oct17.5MFS® International Value Equity
Mark Garabedian, Transaction Cost SpecialistKhaled Shahin, 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
Executive Chairman – Robert ManningPresident, Chief Executive Officer, and Chief Investment Officer – Michael Roberge
Vice Chairman – David AntonelliChief Investment Officer – Global Equity – Kevin Beatty
Chief Investment Risk Officer, Director of Quantitative Solutions – Joseph Flaherty
Brenda Farley, Director of Equity Trading
Fundamental Research
Guillermo EspallargasPhilip EvansDavid FalcoMolly Frew Genevieve Gilroy Lionel GomezSimon GreshamWard Griffiths Jude JasonZahid KassamSalman KhanYuko KikuchiTakeyuki KoraBradford Mak Stuart McPherson Sandeep MehtaAyako Mikami Colin MooreJohnathan MunkoRaj NairVipin NarulaJames NealeRichard Offen
Sheba AlexanderMariana AraujoKoki AkalaMichael AurelioRyan BallAparna Bedi TannaJordan BertierIan BigneyEric Braz Katherine CannanJeffrey ChoMaile ClarkTim ClarkChristopher CorkThomas Crowley Poojah DaftaryShanti Das-WermesClaud DavisEdward DearingMarion de FlorisNicholas DemkoTimothy Dittmer Reinier Dobbelmann
Alison O’Neill MackeyMariana PaixaoHarry PurcellAndrew QuatraleMarco QuizaC.V. RaoMatthew ScholderJames SchusterDeividas SeferisEleanor ShingJoseph Skorski Benjamin SlingsbyNicholas SprattFlorence TajGaurav TewaryJeanine ThomsonScott WalkerStephen WhiteRobert WilsonKevin Wei-Cher YeohDonald ZhangErica Zieba
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 MannheimRyan McAllisterRoger MorleySanjay NatarajanChris 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 SaralayaRamanathan SundaramMichael TataBhushan VartakJenney Zhang
Jeffrey Estella, Director of Trading Analytics and Investment Operations
Trading and Risk Analytics
As of 30-Sep-17.
Benjamin Stone, IIMRPortfolio Manager
21 years industry experience
Camille Lee, CFAInstitutional Portfolio Manager
27 years industry experience
Pablo de la Mata, CFAPortfolio Manager
13 years industry experience
Experienced MFS International Value Equity team
Experienced management, tested by markets, backed by depth
Nevin ChitkaraPortfolio Manager
24 years industry experience
Steven Gorham, CFAPortfolio Manager
27 years industry experience
Kate Mead, CFAInstitutional Portfolio Manager
22 years industry experience
Additional resources
Barnaby WienerPortfolio Manager
23 years industry experience
John Mahoney, CFAInvestment Product Specialist
13 years industry experience
6299-I-CT-IV-25Oct17.6MFS® International Value Equity
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MFS International Value Equity team
6OCT17
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.
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 CFA Institute, CFA Society of Boston- University of Virginia, MBA- University of Virginia, BA
8299-I-CT-IV-25Oct17.8MFS® International Value Equity
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 CFA Institute, CFA Society of Boston- Boston College, MBA- University of New Hampshire, BS
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
9299-I-CT-IV-25Oct17.9MFS® International Value Equity
MFS International Value Equity team additional resources (continued)
Kate Mead, 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 dailycash flows. Communicates investment policy, strategy, and positioning.
- 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 CFA Institute, CFA Society of Boston- 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 CFA Institute, CFA Society of Boston- Bentley University, BS, Financial Management Association National Honors Society
10299-I-CT-IV-25Oct17.10MFS® International Value Equity
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• Federation of National Public Service Workers
Personnel Mutual Aid Associations, Japan• Government Pension Investment Fund of Japan• Government Pension Fund, Thailand• Hospital Authority Provident Fund Scheme, Hong Kong• Kapitalforeningen Lærernes Pension Invest, Denmark• Kapitalforeningen LD• LSR, The Pension Fund for State Employees in Iceland• Nebraska Investment Council• Parliamentary Contributory Pension Fund
1 As of 30-Sep-17. 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• Manulife Financial, Canada• Mitsubishi Electric Pension Fund• Nestlé• Panasonic Pension Fund, Japan• PepsiCo Inc.• Robert Bosch GmbH• Telstra Super, Australia• Toyota Motor Corporation, Japan
Sub-advised accounts• ANZ New Zealand Investments• GuideStone Capital Management• NTUC Income Insurance, Singapore
Non-profit & other• Archdiocese of New York• Children’s Hospital of Pittsburgh• Construction and Building Industry
Superannuation Fund, Australia
• Furman University• National Gallery of Art• Northwell Health System, Inc.• Oregon and Southwest Washington Painters• REST Industry Super, Australia• Saskatchewan Healthcare Employees' Pension
Plan, Canada• Texas A&M Foundation• Trinity University• UFCW Tri-State Pension• University of British Columbia, Canada• University of Western Ontario, Canada
30848.7
28452.17
11299-I-CT-IV-25Oct17.11MFS® International Value Equity
Key contacts
Carolyn Lucey, CIMA Director Relationship Manager
Office phone: 617.954.5980 Cell phone: 617.513.5831Email: [email protected]
Erin MandigoClient Service Manager Phone: 617-954-4046 Email: [email protected]
Mailing AddressMFS Investment Management 111 Huntington Avenue, 23rd Floor Boston, MA 02199
INVESTMENT PROCESS AND DISCIPLINE
13299-I-CT-IV-25Oct17.13MFS® International Value Equity
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
14299-I-CT-IV-25Oct17.14MFS® International Value Equity
GoalPer investment guidelines for Los Angeles Department of Water & Power, on an annual basis MFS isexpected to outperform the MSCI World ex U.S. IMI ND Index, net of fees, to be measured over a marketcycle 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 5 to 10 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, particularly at 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
15299-I-CT-IV-25Oct17.15MFS® International Value Equity
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
typically has held 80 to 100 holdings
Rigorous analysis of business, risk and valuation
The information listed above is current as of the date of the material, and any additions, modifications, or deletions that have occurred since that date are not reflected.
16299-I-CT-IV-25Oct17.16MFS® International Value Equity
Idea generation: Invest rather than speculate
BOSTONTORONTO
MEXICO CITY
SÃO PAULO
SYDNEY
SINGAPORE
HONG KONG
TOKYO
LONDON
104 research analysts29 U.S. equity; 39 non-U.S. equity; 36 fixed-income; backed by 30 research/investment associates
8 global sector teamsorganized by region and sectors; cross-bordercollaboration
11 analyst-managedstrategiesUSD 40.8 billion1 inassets undermanagement
78 portfolio managerswith significant industryexperience in value,core, growth, and fixedincome
Quantitative screens9 quantitative analystsprovide proprietaryresearch models, stockrankings, and scenariotesting; backed by 15quantitative researchassociates
Global collaboration and integration provide competitive advantages
1 Assets as of 30-Jun-17.As of 30-Sep-17.
17299-I-CT-IV-25Oct17.17MFS® International Value Equity
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
18299-I-CT-IV-25Oct17.18MFS® International Value Equity
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
The information listed above is current as of the date of the material, and any additions, modifications, or deletions that have occurred since that date are not reflected.
19299-I-CT-IV-25Oct17.19MFS® International Value Equity
A holistic, multi-faceted approach to risk managementControls in place at security, portfolio, and firm levels
As of 30-Sep-17.
Sound business management• Stable, well-capitalized, profitable enterprise• Strong, established parent• Diversified by business channel,
geography, and asset class• Rigorous capacity management
Broad portfolio level controls• Daily review of portfolio guidelines and risk exposures• Pre- and post-trade compliance system for each portfolio’s guidelines• Semiannual strategy review by Investment Management Committee
Operational excellence• Conservative approach to selection
and monitoring of counterparties• Highly liquid investment strategies• Experienced traders (average 19 years)
focused on best execution• Independent audit annually (SSAE 16, Type II)
Deep understanding of risks at security-level (Know what you own)• Specialization by sector and industry• Integration of fundamental equity, fixed income credit, and quantitative analysts• Experienced investors (Analysts average 14 years, Portfolio Managers average 23 years)• Emphasis on global collaboration
Portfolio
A balance of quantitative discipline and qualitative assessment
20299-I-CT-IV-25Oct17.20MFS® International Value Equity
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.
MARKET OVERVIEW
22299-I-CT-IV-25Oct17.22MFS® International Value Equity
Global equity markets continued their upward climb over the one-year period ending August 29, 2017, as investors responded to favorable earningsreports and improving fundamentals in both developed and emerging markets. The technology, financial services and materials sectors led the marketgains, reflecting the pro-growth, pro-cyclical sentiment of investors. The more defensive areas of the market, including Consumer Staples and HealthCare, lagged the index in the risk-on environment. Our approach to investing is conservative, with a primary focus on protecting our clients' capital inmarket downturns. We would expect the portfolio to underperform in a market characterized by risk-on, pro-growth and pro-cyclical leadership, in otherwords, the type of market we have experienced over the past year. A headwind to performance was our long-standing underweight to Financial Services, where we are avoiding the European banks due to their overlyindebted balance sheets and complicated, lower return business models. Owning Canadian insurer Fairfax Financial hurt relative returns after thecompany reported losses on equity short positions, and avoiding the European banks weighed on relative performance as the banks rallied on risinginterest rates. Our overweight to Consumer Staples, where we favor a number of steady, high quality, cash-generative companies, hurt relative returnsas the defensive area fell out of favor with investors. An underweight position in Materials, and our decision to own the higher quality and more consistentflavors and fragrance ingredient companies, rather than the miners, hurt relative returns as rising commodity prices fueled strong gains for the miningcompanies. Stock selection in Industrials also weighed on relative returns, after Australian logistics company Brambles brought down earnings guidancedue to increased near-term price competition, and Japanese parcel delivery company Yamato lowered earnings expectations due to rising labor costs. On a more positive note, our underweight and favorable stock selection in Health Care, where we avoided index constituent Teva Pharmaceuticals, aidedrelative returns. An underweight to Energy helped relative performance. And our overweight to Technology, specifically owning German semiconductormaker Infineon, aided relative returns as well. While our conservative approach to investing has been out of favor over the past year, market trends are likely to change abruptly at some point in thefuture, and our portfolio is positioned to provide downside protection when the inevitable correction occurs. The eight-year-old bull market islong-in-the-tooth, and equity valuations are elevated. The US is in a late stage of the business cycle, and the Federal Reserve is raising interest ratesand tightening monetary policy. Central banks in Europe and Japan may begin to taper their quantitative easing programs. Near-term growth in Europehas ticked up, but risks remain, including the overly indebted bank and government balance sheets, structural tensions in the Eurozone and uncertaintyrelated to Brexit. In China, growth has slowed and debt levels are rising. And tensions with North Korea and Russia are a source of hard-to-quantify risk.
Market overviewAs of 31 August 2017
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.
PERFORMANCE REVIEW
24299-I-CT-IV-25Oct17.24MFS® International Value Equity
Compliance with LADWP’s investment guidelinesAs of 31 August 2017
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.
25299-I-CT-IV-25Oct17.25MFS® International Value Equity
EmergingMarkets
Europeex U.K.
Pacificex Japan
UnitedStates
Japan Canada U.K.
24.522.4
18.515.5
13.7 12.1 12.1
Mater
ials
Infor
matio
n Te
chno
logy
Fina
ncial
s
Indus
trials
Utilit
ies
Ener
gy
Cons
umer
Di
scre
tiona
ry
Cons
umer
St
aples
Real
Estat
e
Healt
h Car
e
Telec
ommu
nicati
on
Servi
ces
26.8
39.3
28.7 29.4 27.8 29.3
21.0 23.017.2 19.7
10.013.516.2
11.3 10.46.8 7.9 6.7 8.1 6.2 6.7 4.1
MSCI World ex US IMI Value MSCI World ex US IMI
Region performance (%)1, One year as of 31-Aug-17 Sector performance (%)2, One year as of 31-Aug-17
Market and portfolio overview
Portfolio Value (Employees’ Retirement, Disability & Death Benefit Plan)Initial Value as of 31-Aug-16 $509,641,820Contributions 0Withdrawals –14,003Change in Market Value +58,294,212Market Value as of 31-Aug-17 $567,922,029Portfolio Value (Retiree Health Benefits Fund)Beginning value as of 31-Aug-16 $85,746,964Contributions 0Withdrawals –13,201Change in market value +9,806,229Ending value as of 31-Aug-17 $95,539,992
Portfolio performance (%), net of fees, as of 31-Aug-17
1 Year
11.1 11.120.0 17.6
Employees' Retirement, Disability and Death Benefit Plan
Retiree Health Benefits Fund
MSCI World ex US IMI Value
MSCI World ex US IMI
Past performance is no guarantee of future results.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.
26299-I-CT-IV-25Oct17.26MFS® International Value Equity
Historical performance in diverse markets (USD)
1MSCI World ex US IMI Index with net dividends reinvested. Source: benchmark performance from SPAR, FactSet Research Systems Inc. Based on quarterly returns in USD. Please note the composite shown is unrestricted and allows for investment in Emerging Markets and US securities.
Past performance is no guarantee of future results.
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
MFS International Value Composite-Unrestricted (gross of fees) vs MSCI World ex US IMI Index1, October 2003 – June 2017
Downside risk management, upside participation
Average quarterly +4.5% +1.0% -0.4% +1.0%relative performance
27299-I-CT-IV-25Oct17.27MFS® International Value Equity
Employees’ Retirement, Disability & Death Benefit PlanPerformance overview
Excess returns (%) vs.MSCI World ex US Value IMI 4.0 -8.9 1.3 5.5 3.7 3.5MSCI World ex US IMI 1.3 -6.5 0.9 3.9 3.2 3.2
YTD 1 Year 2 Years 3 Years 5 Years Since inception(6-Jul-12)
18.1
14.116.8
11.1
20.017.6
10.1 8.8 9.26.7
1.22.8
11.67.9 8.4
12.08.5 8.8
Portfolio (net)
MSCI World ex US IMI Value
MSCI World ex US IMI
Cumulative returns (%), as of 31-Aug-17
Annual performance (%), as of 31-Aug-17 YTD 2016 2015 2014 2013 Portfolio (net) 18.1 -0.8 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
14.1 7.5 -6.6 -5.5 22.2 4.0 -8.3 13.4 6.4 8.7 16.8 3.0 -2.0 -4.5 21.6 1.3 -3.8 8.8 5.4 9.3
Past performance is no guarantee of future results.
28299-I-CT-IV-25Oct17.28MFS® International Value Equity
Retiree Health Benefits Fund Performance overview
Excess returns (%) vs.MSCI World ex US Value IMI 4.0 -8.9 1.2 5.5 3.7 3.5MSCI World ex US IMI 1.3 -6.5 0.8 3.9 3.2 3.2
YTD 1 Year 2 Years 3 Years 5 Years Since inception(6-Jul-12)
18.1
14.116.8
11.1
20.017.6
10.0 8.8 9.26.7
1.2 2.8
11.67.9 8.4
12.08.5 8.8
Portfolio (net)
MSCI World ex US IMI Value
MSCI World ex US IMI
Cumulative returns (%), as of 31-Aug-17
Annual performance (%), as of 31-Aug-17 YTD 2016 2015 2014 2013 Portfolio (net) 18.1 -0.9 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
14.1 7.5 -6.6 -5.5 22.2 4.0 -8.4 13.4 6.4 8.7 16.8 3.0 -2.0 -4.5 21.6 1.3 -3.9 8.8 5.4 9.3
Past performance is no guarantee of future results.
29299-I-CT-IV-25Oct17.29MFS® International Value Equity
A proven history of strong relative long-term performance
MFS International Value Equity Composite-UnrestrictedPerformance – gross of fees (USD)
Annualized returns (%), as of 31-Aug-17
Annual performance (%), as of 31-Aug-17 YTD 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
MFS International Value Equity CompositeMSCI World (ex-US) Investable Market Index Value (net div)MSCI World (ex-US) Investable Market Index (net div)
8.6
14.5
9.7
13.4
7.44.7
20.0
1.2
7.9
1.2
5.9
17.6
2.8
8.4
1.9
2Q17 1 Year 3 Years 5 Years 10 YearsExcess return (%) vs.MSCI World (ex-US) Investable Market Index Value (net div) 3.9 -5.5 8.5 5.5 6.2MSCI World (ex-US) Investable Market Index (net div) 2.7 -3.1 6.9 5.0 5.5
MFS International Value Equity Composite 19.1 4.9 7.5 2.3 29.0 17.2 -0.7 10.6 26.5 -30.9 8.8 MSCI World (ex-US) Investable Market Index Value (net div) 14.1 7.5 -6.6 -5.5 22.2 17.6 -12.3 6.6 38.3 -44.4 6.1 Excess return 5.0 -2.6 14.1 7.8 6.8 -0.4 11.6 4.0 -11.8 13.5 2.7MSCI World (ex-US) Investable Market Index (net div) 16.8 3.0 -2.0 -4.5 21.6 16.5 -12.7 10.7 35.3 -44.0 11.7 Excess return 2.3 1.9 9.5 6.8 7.4 0.7 12.0 -0.1 -8.8 13.1 -2.9
Please see performance methodology and composite report in appendix for net of fee performance and other information. Please note the composite shown is unrestricted and allows for investmentin Emerging Markets and US securities. Past performance is not a reliable indicator for future results. All financial investments involve an element of risk. The value of investments may rise and fall so you may get back less than originally invested. Investors should consider the risks, including lower returns, related to currency movements between their investing currency and the strategy's base currency, if different.Periods less than one year are actual not annualized.
30
299-I-CT-IV-25Oct17.30MFS® International Value Equity
MFS International Value Equity Composite -Unrestricted Peer Universe Rankings as of 30 June 2017
1 Based on monthly returns.2 Based on quarterly returns.3 Relative to the MSCI World ex USA IMI Index.4 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 capturehas been adjusted to show the ranking in ascending order.
5 Rankings are vs. the eVestment EAFE Value Equity universe. The number of observations for the eVestment EAFE Value Equity: 105 (1 year); 94 (3 years); 88 (5 years); 75 (10 years). Compiledon 02 October 2017 with 93.8 % of firms reporting.
6 MSCI World ex USA IMI Index with net dividends reinvested. Please note the composite shown is unrestricted and includes investment in Emerging Markets and US securities.This Peer Universe Ranking does not use the composite's standard benchmark. Please note the composite shown is unrestricted and allows for investment in Emerging Markets and US securities. Please see attached GIPS report for for complete composite performance information.
Annualized returns (gross of fees) Information ratio1,3
Upsidemarket
capture2,3,4
Downsidemarket
capture2,3,4
1 year 3 years 5 years 10 years 5 years 10 years 10 years 10 years
MFS International Value Equity 16.4 8.3 13.8 6.9 0.95 0.94 96 63
MFS Percentile Rank8 89 2 7 5 18 3 70 3
MSCI World ex USA IMI Index6 19.7 1.1 8.6 1.3 – – – –
Index Percentile Rank5 69 66 72 72 – – – –
31299-I-CT-IV-25Oct17.31MFS® International Value Equity
How has this translated into performance results? (USD)
MFS International Value Equity composite -UnrestrictedRolling 5-year periods (gross of fees) vs. MSCI World (ex-US) IMI Index1 (1Q98 – 2Q17) Average rolling 5 year annualized excess returns since inception: 4.9%
1 MSCI World (ex-US) IMI Index with net dividends reinvested.Source: benchmark performance from SPAR, FactSet Research Systems, Inc. Based on quarterly frequency.Please note the composite shown is unrestricted and allows for investment in Emerging Markets and US securities. Past performance is no guarantee of future results.
Disciplined approach, historical relative returns
-10
0
10
20
30
-10 -5 0 5 10 15 20 25 30
Mana
ger r
eturn
s (%
)
Benchmark returns (%)
32299-I-CT-IV-25Oct17.32MFS® International Value Equity
Historically consistent returnsRolling gross portfolio performance since inception relative to MSCI World (ex-US) IMI Index (USD)As of 31 August 2017
Past performance is no guarantee of future results. Source: FactSet. Inception of the Employees' Retirement, Disability, and Death Benefit plan is 6 July 2012. Returns have been provided as of the start of the first full month after inception (1 August 2012). For all time
periods, results were calculated on a rolling basis, measured monthly. The strategy outperformed 26 of 26 rolling 3 year periods, and 2 of 2 rolling 5 year periods.
Rolling 3 years Rolling 5 years
% of outperforming periods 100% 100%
Average excess return 5.6% 3.5%
33299-I-CT-IV-25Oct17.33MFS® International Value Equity
Historically consistent returnsRolling gross composite (unrestricted) performance since inception relative to MSCI World (ex-US) IMI Index (USD) As of 30 June 2017
Past performance is no guarantee of future results Please note the composite shown is unrestricted and allows for investment in Emerging Markets and US securities. Source: FactSet. Inception of the MFS International Value Equity composite is 1-Dec-97. For all time periods, results were calculated on a rolling basis, measured quarterly. The strategy outperformed 44 of 44 rolling3 year periods, 36 of 36 rolling 5 year periods, 28 of 28 rolling 7 year periods, and 16 of 16 rolling 10 year periods.
Rolling 3 years Rolling 5 years Rolling 7 years Rolling 10 years
% of outperforming periods 100% 100% 100% 100%
Average excess return 4.9% 5.0% 4.9% 4.9%
34299-I-CT-IV-25Oct17.34MFS® International Value Equity
Performance drivers – regionsRelative to MSCI World ex US IMI Index (USD) – one year as of 31 August 2017
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 Region Stock Currency Relative weighting (%) returns (%) returns (%) selection (%) + selection (%) + effect (%) = contribution (%)
Contributors Developed - Middle East/Africa -0.2 46.8 -9.1 0.1 0.2 -0.0 0.3
Detractors Europe Ex-U.K. 7.5 16.0 24.0 0.0 -3.4 0.1 -3.3Japan 2.6 10.6 15.7 0.2 -1.4 -0.2 -1.4Asia/Pacific Ex-Japan -7.3 -11.4 17.5 0.2 -1.3 -0.1 -1.2United Kingdom 0.8 7.4 12.6 -0.0 -0.9 -0.1 -1.0Cash 3.6 0.7 -- -0.6 -- -0.1 -0.6North America -6.9 -6.5 12.1 0.7 -0.5 -0.3 -0.2Emerging Markets -0.0 -- 42.5 0.0 -- -0.0 -0.0
Total 10.9 18.2 0.5 -7.3 -0.6 -7.3
35299-I-CT-IV-25Oct17.35MFS® International Value Equity
Performance drivers – countryRelative to MSCI World ex US IMI Index (USD) – one year as of 31 August 2017
Average relative Sector Stock Currency Relative weighting (%) selection (%) + selection (%) + effect (%) = contribution (%)
Contributors Norway 0.1 0.0 0.3 0.0 0.3Israel -0.3 0.1 0.2 -0.0 0.3Netherlands 1.1 0.1 0.1 0.1 0.2Belgium -1.2 0.2 -- -0.1 0.1Ireland 0.7 -0.1 0.1 0.0 0.1Denmark -0.9 0.1 0.1 -0.1 0.1New Zealand -0.3 0.0 -- 0.0 0.0Finland -0.8 0.0 0.1 -0.0 0.0Spain -0.8 -0.0 0.1 -0.1 0.0
Detractors Germany 5.5 -0.1 -1.8 0.3 -1.6Japan 2.6 0.2 -1.4 -0.2 -1.4France 1.8 0.1 -1.1 0.1 -1.0United Kingdom 0.8 -0.0 -0.9 -0.0 -1.0Australia -3.1 0.2 -1.0 -0.1 -0.9Switzerland 5.8 -0.1 -0.7 0.1 -0.7Cash 3.6 -0.6 -- -0.1 -0.6Italy -2.2 -0.3 -- -0.1 -0.4Hong Kong -2.7 -0.1 -0.2 0.1 -0.3Sweden -1.2 0.1 -0.2 -0.1 -0.3Canada -6.9 0.6 -0.5 -0.3 -0.2Austria -0.3 -0.1 -- -0.0 -0.1Singapore -1.2 -0.0 -- 0.0 -0.0United States -0.0 -0.0 -- -0.0 -0.0Portugal -0.2 0.0 -- -0.0 -0.0China -0.0 0.0 -- -0.0 -0.0Taiwan -0.0 0.0 -- -0.0 -0.0
Total 0.1 -6.8 -0.6 -7.3
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.
36299-I-CT-IV-25Oct17.36MFS® International Value Equity
Performance drivers – sectorsRelative to MSCI World ex US IMI Index (USD) – one year as of 31 August 2017
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 Health Care -4.1 14.9 8.1 0.5 0.6 -0.2 0.8Energy -5.5 4.9 10.0 0.5 0.0 -0.1 0.4Information Technology 6.0 26.8 28.7 0.7 -0.2 -0.1 0.3Real Estate 0.2 13.4 7.9 0.0 -0.1 0.3 0.3Consumer Discretionary -7.5 16.3 16.2 0.0 0.1 -0.0 0.1Utilities -3.1 .– 17.2 0.1 .– -0.0 0.0
Detractors Industrials 5.1 3.6 21.0 0.2 -3.6 0.1 -3.3Financials -8.7 16.2 27.8 -0.6 -1.3 -0.2 -2.1Consumer Staples 19.7 8.8 10.4 -1.4 -0.4 -0.1 -2.0Materials -4.0 7.9 26.8 -0.3 -0.9 0.0 -1.1Cash 3.6 0.7 .– -0.6 .– -0.1 -0.6Telecommunication Services -1.5 -6.3 6.7 0.1 -0.1 -0.2 -0.1
Total 10.9 18.2 -0.8 -5.9 -0.6 -7.3
37299-I-CT-IV-25Oct17.37MFS® International Value Equity
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 2017
Average Weighting Returns RelativePortfolio (%) Benchmark (%) Portfolio (%)1 Benchmark (%) contribution (%)
Contributors DnB NOR ASA 0.9 0.1 67.2 67.2 0.3Amadeus IT Holding 2.0 0.1 37.6 37.6 0.3Teva Pharmaceutical Industries Ltd .– 0.2 .– -68.2 0.2ING Groep NV 1.3 0.4 47.9 47.9 0.2Infineon Tech 1.3 0.1 38.8 38.8 0.2
Detractors Brambles Ltd 2.8 0.1 -18.0 -18.0 -1.1Fairfax Financial Holdings 2.0 0.1 -6.5 -6.5 -0.6Reckitt Benckiser Group PLC 3.8 0.4 0.2 0.2 -0.6Japan Tobacco Inc 2.1 0.2 -8.7 -8.7 -0.5Yamato Holding Co Ltd 1.8 0.0 -8.8 -8.8 -0.5
PORTFOLIO REVIEW AND CHARACTERISTICS
39299-I-CT-IV-25Oct17.39MFS® International Value Equity
Significant transactions
EndingFrom 01-Sep-16 to 31-Aug-17 Security Sector Transaction type Trade (%) weight (%)Purchases KERRY GROUP PLC Consumer Staples Add 0.5 1.1
L'OREAL SA Consumer Staples New position 0.5 0.5
CHECK POINT SOFTWARE Information Technology New position 0.5 0.6
EXPERIAN PLC Industrials New position 0.5 0.4
GIVAUDAN SA Materials Add 0.4 2.3
Sales DANONE SA Consumer Staples Trim -0.8 3.4
ERICSSON LM Information Technology Eliminate position -0.8 .–
COBHAM PLC Industrials Eliminate position -0.6 .–
ZURICH INSURANCE GROUP Financials Eliminate position -0.6 .–
DNB ASA Financials Trim -0.6 0.8
40299-I-CT-IV-25Oct17.40MFS® International Value Equity
Top 10 portfolio holdings
As of 31-Aug-17 Sector Portfolio (%)
Nestle SA Consumer Staples 4.7 1.0 1.5
Reckitt Benckiser Group PLC Consumer Staples 3.5 0.0 0.3
Danone SA Consumer Staples 3.4 0.0 0.3
Compass Group PLC Consumer Discretionary 2.9 0.0 0.2
Henkel AG & Co KGaA IPS Consumer Staples 2.7 0.0 0.1
Kao Corp Consumer Staples 2.6 0.0 0.2
Pernod Ricard SA Consumer Staples 2.5 0.0 0.2
Amadeus IT Group SA Information Technology 2.3 0.0 0.2
Givaudan SA Materials 2.3 0.0 0.1
Brambles Ltd Industrials 2.2 0.0 0.1
MSCI World ex US IMI (%)
MSCI World ex US IMI Value (%)
41299-I-CT-IV-25Oct17.41MFS® International Value Equity
Characteristics
No forecasts can be guaranteed.1 Weighted average.2 (Lesser of purchase or sales)/average market value.
As of 31-Aug-17 Portfolio ex US Value IMI (%) ex US IMI (%)
Fundamentals1 Price/earnings (12 months forward) 18.5x 12.7x 15.0x
Price/earnings (12 months trailing) 21.7x 17.1x 20.3x
Price/sales 2.2x 1.0x 1.2x
Price/cash flow 15.3x 9.3x 11.1x
Return on equity (3-year average) 17.9% 10.2% 13.4%
IBES Long Term EPS growth 7.6% 9.5% 11.3%
Price/book 2.5x 1.3x 1.7x
Dividend Yield 2.2% 3.9% 3.0%
Price/earnings to growth 2.3x 1.3x 1.5x
Market capitalization (USD) Weighted average 43.7 bn 55.9 bn 51.0 bn
Diversification Top 10 holdings 29% 14.6% 9%
Number of holdings 92 2,032 3,498
Number of countries 16 22 22
Turnover2 1 year 9% – –
MSCI World MSCI World
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.
3
42299-I-CT-IV-25Oct17.42MFS® International Value Equity
Characteristics
No forecasts can be guaranteed.1 Based on 5-year monthly data.2
MSCI World ex US MSCI World ex USAs of 31-Aug-17 Portfolio IMI Value (%) IMI (%)
Risk/reward (USD)1 Standard deviation 12.4% 11.5%
Barra predicted tracking error 2 – 5.3% 4.0%
Beta vs. – 0.7 0.8
R-square – 68% 80%
Correlation – 0.82 0.89
Alpha (annualized) – 6.16% 4.83%
Sharpe ratio – 1.1% 1.1%
Jensen’s alpha – 6.3 5.0
Treynor ratio – 16.8 14.3
10.6%
43299-I-CT-IV-25Oct17.43MFS® International Value Equity
Regional exposures – domicile vs. revenuePortfolio relative to MSCI World (ex-US) IMI Index
By Domicile By Revenue
MSCI World (ex-US) Relative l MSCI World (ex-US) Relative Portfolio (%) IMI Index (%) weight (%) Portfolio (%) IMI Index (%) weight (%)
North America 1.5 8.7 -7.2 18.6 21.8 -3.1Europe Ex-U.K. 47.8 41.2 6.6 24.8 23.8 1.0United Kingdom 17.5 16.3 1.2 8.6 8.3 0.2Developed - Middle East/Africa 0.5 0.7 -0.2 0.3 0.5 -0.2Japan 25.3 22.3 3.0 23.2 16.6 6.6Asia Pacific Ex-Japan 3.2 10.9 -7.7 1.9 8.8 -6.9Emerging Markets 0.0 0.0 0.0 20.5 18.0 2.5Other Countries 0.0 0.0 0.0 2.2 2.1 0.1
NorthAmerica
Europeex-U.K.
UnitedKingdom
Developed - Middle East/Africa
Japan Asia Pacific Ex-Japan
EmergingMarkets
OtherCountries
Perce
nt (%
)
-7.2-3.1
6.6
1.0 1.2 0.2-0.2 -0.2
3.06.6
-7.7 -6.9
0.02.5
0.0 0.1
By Domicile By Revenue
Relative weight (%), as of 30-Jun-17
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.
44299-I-CT-IV-25Oct17.44MFS® International Value Equity
Region and country weights
Portfolio (%) Underweight/overweight (%)
3.3% Cash & Cash Equivalents. 0.0% Other. Other consists of: (i) currency derivatives and/or (ii) any derivative offsets.
1 Portfolio does not own securities in the following countries: Italy 2.5%; Singapore 1.2%; Belgium 1.2%; and 3 other countries with weights less than 1.00% totaling 0.8%.
Underweight/overweightas of 31-Aug-17 (%) MSCI World ex US IMI (%)
Europe ex-U.K. 49.0 41.4 7.6Germany 14.1 8.3 5.8Switzerland 12.8 7.1 5.7France 10.8 8.8 2.0Ireland 1.7 0.5 1.2Netherlands 4.1 3.1 1.0Norway 0.8 0.8 0.0Finland 0.3 1.0 -0.7Spain 2.3 3.1 -0.8Denmark 0.7 1.7 -1.0Sweden 1.4 3.0 -1.6Other Countries 1 0.0 4.1 -4.1
United Kingdom 16.9 16.2 0.7Japan 25.4 22.2 3.2Asia/Pacific ex-Japan 3.1 11.0 -7.9Hong Kong 0.2 3.1 -2.9Australia 2.9 6.4 -3.5Other Countries 1 0.0 1.5 -1.5
Developed - Middle East/Africa 0.6 0.6 0.0Israel 0.6 0.6 0.0
North America 1.7 8.7 -7.0Canada 1.7 8.7 -7.0
7.6
0.7
3.2
-7.9
0.0
-7.0
Europeex-U.K.
UnitedKingdom
Japan
Asia/Pacificex-Japan
Developed -MiddleEast/Africa
North America
45299-I-CT-IV-25Oct17.45MFS® International Value Equity
Sector weights
Cons
umer
St
aples
Indus
trials
Infor
matio
n Te
chno
logy
Finan
cials
Healt
h Car
e
Real
Estat
e
Cons
umer
Di
scre
tiona
ry
Mater
ials
Telec
ommu
nicati
on
Servi
ces
Ener
gy
30.5
2.9
10.3
19.4
11.2
15.012.4
3.0
6.6
11.8
35.5
21.4
5.6 6.79.1
5.2 6.04.4 4.6
9.211.9
4.67.3 8.6
2.04.8 3.6
0.6
8.05.9
Portfolio MSCI World ex US IMI Value MSCI World ex US IMI
As of 31-Aug-17
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 IMI Value 27.6 8.2 9.4 -23.7 -1.1 -0.8 -4.6 -2.7 -2.8 -7.4MSCI World ex US IMI 20.2 4.4 5.8 -9.6 -3.5 0.8 -7.3 -4.0 -1.6 -5.3
46299-I-CT-IV-25Oct17.46MFS® International Value Equity
Employees' Retirement, Disability & Death Benefit Plan Portfolio holdings
EquivalentAs of 31-Aug-17 Country Exposure (%)
EquivalentAs of 31-Aug-17 Country Exposure (%)
Cash & Cash Equivalents 3.3Consumer Discretionary 4.6Compass Group PLC United Kingdom 2.9Cie Financiere Richemont SA Switzerland 0.9USS Co Ltd Japan 0.4Yamaha Corp Japan 0.3Esprit Holdings Ltd Hong Kong 0.2Consumer Staples 30.5Nestle SA Switzerland 4.7Danone SA France 3.5Reckitt Benckiser Group PLC United Kingdom 3.5Henkel AG & Co KGaA IPS Germany 2.7Kao Corp Japan 2.6Pernod Ricard SA France 2.5Heineken NV Netherlands 2.0British American Tobacco PLC United Kingdom 1.9Japan Tobacco Inc Japan 1.8Kobayashi Pharmaceutical Co Ltd Japan 1.2Kerry Group PLC Ireland 1.1Toyo Suisan Kaisha Ltd Japan 1.0Ito En Ltd Japan 0.9L'Oreal SA France 0.5Nissin Foods Holdings Co Ltd Japan 0.3Kose Corp Japan 0.3Energy 0.6Inpex Corp Japan 0.4Cairn Energy PLC United Kingdom 0.2
Financials 11.8Fairfax FinancialHoldings Ltd Canada 1.7Svenska Handelsbanken AB Sweden 1.4ING Groep NV Netherlands 1.2UBS Group AG Switzerland 1.2Sumitomo MitsuiFinancial Group Inc Japan 0.9DNB ASA Norway 0.8Hiscox Ltd United Kingdom 0.6Jyske Bank AS Denmark 0.4IG Group Holdings PLC United Kingdom 0.4Jardine LloydThompson Group PLC United Kingdom 0.4Daiwa Securities Group Inc Japan 0.4Julius Baer Group Ltd Switzerland 0.4Chiba Bank Ltd Japan 0.3Bank of Ireland Group PLC Ireland 0.3Sydbank AS Denmark 0.3Mebuki Financial Group Inc Japan 0.3Euler Hermes Group France 0.3Hachijuni Bank Ltd Japan 0.3North Pacific Bank Ltd Japan 0.2Health Care 5.6Bayer AG Germany 1.2Santen Pharmaceutical Co Ltd Japan 1.2Roche Holding AG Switzerland 1.1Nihon Kohden Corp Japan 0.8Terumo Corp Japan 0.8Rohto Pharmaceutical Co Ltd Japan 0.5
47299-I-CT-IV-25Oct17.47MFS® International Value Equity
Employees' Retirement, Disability & Death Benefit Plan Portfolio holdings (continued)
Industrials 19.4Brambles Ltd Australia 2.2Bunzl PLC United Kingdom 1.8Yamato Holdings Co Ltd Japan 1.4Schneider Electric SE France 1.4Legrand SA France 1.4SGS SA Switzerland 1.3Secom Co Ltd Japan 1.2GEA Group AG Germany 1.2IMI PLC United Kingdom 1.0Spirax-Sarco Engineering PLC United Kingdom 1.0Brenntag AG Germany 0.8Intertek Group PLC United Kingdom 0.8RELX NV Netherlands 0.7MISUMI Group Inc Japan 0.5Schindler Holding AG Switzerland 0.5Geberit AG Switzerland 0.4Experian PLC United Kingdom 0.4Wartsila OYJ Abp Finland 0.3Glory Ltd Japan 0.3Ryanair Holdings PLC ADR Ireland 0.2Rentokil Initial PLC United Kingdom 0.2Sohgo Security Services Co Ltd Japan 0.2
Information Technology 12.4Amadeus IT Group SA Spain 2.3Nomura Research Institute Ltd Japan 1.8Infineon Technologies AG Germany 1.5Hirose Electric Co Ltd Japan 1.1Halma PLC United Kingdom 1.0Obic Co Ltd Japan 0.9Omron Corp Japan 0.9Dassault Systemes SE France 0.9Spectris PLC United Kingdom 0.6Check PointSoftware Technologies Ltd Israel 0.6Yokogawa Electric Corp Japan 0.4ASM International NV Netherlands 0.2Neopost SA France 0.2Materials 4.6Givaudan SA Switzerland 2.3Symrise AG Germany 1.4Orica Ltd Australia 0.7Sika AG Switzerland 0.2Other 0.0Real Estate 5.2Vonovia SE Germany 2.0Deutsche Wohnen SE Germany 2.0LEG Immobilien AG Germany 0.7TAG Immobilien AG Germany 0.5Telecommunication Services 2.0KDDI Corp Japan 2.0
EquivalentAs of 31-Aug-17 Country Exposure (%)
EquivalentAs of 31-Aug-17 Country Exposure (%)
48299-I-CT-IV-25Oct17.48MFS® International Value Equity
Retiree Health Benefits Fund Portfolio holdings
EquivalentAs of 31-Aug-17 Country Exposure (%)
EquivalentAs of 31-Aug-17 Country Exposure (%)
Cash & Cash Equivalents 3.3Consumer Discretionary 4.7Compass Group PLC United Kingdom 2.9Cie Financiere Richemont SA Switzerland 0.9USS Co Ltd Japan 0.4Yamaha Corp Japan 0.3Esprit Holdings Ltd Hong Kong 0.2Consumer Staples 30.4Nestle SA Switzerland 4.7Reckitt Benckiser Group PLC United Kingdom 3.5Danone SA France 3.4Henkel AG & Co KGaA IPS Germany 2.7Kao Corp Japan 2.6Pernod Ricard SA France 2.5Heineken NV Netherlands 2.0British American Tobacco PLC United Kingdom 1.9Japan Tobacco Inc Japan 1.8Kobayashi Pharmaceutical Co Ltd Japan 1.2Kerry Group PLC Ireland 1.1Toyo Suisan Kaisha Ltd Japan 1.0Ito En Ltd Japan 0.9L'Oreal SA France 0.5Kose Corp Japan 0.3Nissin Foods Holdings Co Ltd Japan 0.3Energy 0.6Inpex Corp Japan 0.4Cairn Energy PLC United Kingdom 0.2
Financials 11.8Fairfax FinancialHoldings Ltd Canada 1.7Svenska Handelsbanken AB Sweden 1.4ING Groep NV Netherlands 1.2UBS Group AG Switzerland 1.2Sumitomo MitsuiFinancial Group Inc Japan 0.9DNB ASA Norway 0.8Hiscox Ltd United Kingdom 0.6Jyske Bank AS Denmark 0.4IG Group Holdings PLC United Kingdom 0.4Jardine LloydThompson Group PLC United Kingdom 0.4Daiwa Securities Group Inc Japan 0.4Julius Baer Group Ltd Switzerland 0.4Chiba Bank Ltd Japan 0.3Bank of Ireland Group PLC Ireland 0.3Sydbank AS Denmark 0.3Mebuki Financial Group Inc Japan 0.3Euler Hermes Group France 0.3Hachijuni Bank Ltd Japan 0.3North Pacific Bank Ltd Japan 0.2Health Care 5.6Bayer AG Germany 1.2Santen Pharmaceutical Co Ltd Japan 1.2Roche Holding AG Switzerland 1.1Nihon Kohden Corp Japan 0.8Terumo Corp Japan 0.8Rohto Pharmaceutical Co Ltd Japan 0.5
49299-I-CT-IV-25Oct17.49MFS® International Value Equity
Retiree Health Benefits Fund Portfolio holdings (continued)
Industrials 19.4Brambles Ltd Australia 2.2Bunzl PLC United Kingdom 1.9Yamato Holdings Co Ltd Japan 1.4Schneider Electric SE France 1.4Legrand SA France 1.4SGS SA Switzerland 1.3Secom Co Ltd Japan 1.2GEA Group AG Germany 1.2IMI PLC United Kingdom 1.0Spirax-Sarco Engineering PLC United Kingdom 1.0Brenntag AG Germany 0.8Intertek Group PLC United Kingdom 0.8RELX NV Netherlands 0.7MISUMI Group Inc Japan 0.5Schindler Holding AG Switzerland 0.5Geberit AG Switzerland 0.4Experian PLC United Kingdom 0.4Wartsila OYJ Abp Finland 0.3Glory Ltd Japan 0.3Ryanair Holdings PLC ADR Ireland 0.2Rentokil Initial PLC United Kingdom 0.2Sohgo Security Services Co Ltd Japan 0.2
Information Technology 12.4Amadeus IT Group SA Spain 2.3Nomura Research Institute Ltd Japan 1.8Infineon Technologies AG Germany 1.5Hirose Electric Co Ltd Japan 1.1Halma PLC United Kingdom 1.0Obic Co Ltd Japan 0.9Omron Corp Japan 0.9Dassault Systemes SE France 0.9Spectris PLC United Kingdom 0.6Check PointSoftware Technologies Ltd Israel 0.6Yokogawa Electric Corp Japan 0.4ASM International NV Netherlands 0.2Neopost SA France 0.2Materials 4.6Givaudan SA Switzerland 2.3Symrise AG Germany 1.4Orica Ltd Australia 0.7Sika AG Switzerland 0.2Other 0.0Real Estate 5.2Deutsche Wohnen SE Germany 2.1Vonovia SE Germany 2.0LEG Immobilien AG Germany 0.7TAG Immobilien AG Germany 0.5Telecommunication Services 2.0KDDI Corp Japan 2.0
EquivalentAs of 31-Aug-17 Country Exposure (%)
EquivalentAs of 31-Aug-17 Country Exposure (%)
FEE SCHEDULE
51299-I-CT-IV-25Oct17.51MFS® International Value Equity
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
52299-I-CT-IV-25Oct17.52MFS® International Value Equity
MFS International Value Equity Composite-UnrestrictedPerformance – net of fees (USD)
Annualized returns (%), as of 31-Aug-17
Source for benchmark performance: SPAR, FactSet Research Systems Inc.
Past performance is not a reliable indicator for future results. All financial investments involve an element of risk. The value of investments may rise and fall so you may get back less than originally invested. Investors should consider the risks, including lower returns, related to currency movements between their investing currency and the strategy's base currency, if different. Please note the composite shown is unrestricted and allows for investments in emerging markets and US securities.
Periods less than one year are actual not annualized.
Perce
nt (%
)
MFS International Value Equity Composite-UnrestrictedMSCI World (ex-US) Investable Market Index Value (net div) MSCI World (ex-US) Investable Market Index (net div)
8.4
13.7
8.9
12.5
6.6
4.7
20.0
1.2
7.9
1.2
5.9
17.6
2.8
8.4
1.9
2Q17 1 Year 3 Years 5 Years 10 Years
53299-I-CT-IV-25Oct17.53MFS® International Value Equity
Market capitalization (USD)
As of 31-Aug-17
0 – 1 bn 1 – 5 bn 5 – 10 bn 10 – 50 bn 50 – 100 bn 100 bn +
% of
portf
olio
0.02.9 2.5
9.413.8 13.5
18.1
8.610.7
40.1
33.0
38.8
19.723.6
18.0
9.4
18.1 16.5
Portfolio
MSCI World (ex-US) IMI Value
MSCI World (ex-US) IMI
Weighted average market cap (USD billions)Portfolio 43.7MSCI World ex USA IMI Value 55.9MSCI World Ex USA IMI 51.0
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
Derivative Exposure DisclosureCertain MFS portfolios in this composite may utilize derivative instruments to manage risk or to achieve timely and cost effective implementation of the investment strategy. As of 30-Jun-2017, the number of accounts in the composite shown below held derivatives with the following average equivalent exposure of total net assets:
Number of Accounts ExposureLong Exposure 9 5.58%Short Exposure 9 -5.47%
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) %Firm2017 Q2 8.57 8.37 4.78 0.08 14 10.09 13.15 $35,374.9 7.7
2017 Q1 7.46 7.26 6.05 0.12 14 9.56 13.13 $32,674.6 7.4
2016 4.90 4.12 5.02 0.24 15 10.29 13.51 $31,474.5 7.4
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 0.8MFS 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. 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 - 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 and benchmark annualized 3-year standard deviation 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 for the full period, dispersion is deemed not meaningful. Prior to 31-Mar-2009 accounts have been eligible for inclusion in the composite if they had assets greater than 5.0 MM USD. Composite Dispersion for 2016 was incorrectly stated to be 0.46 on the Q4 2016 report. The correct Composite Dispersion is 0.24. 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), MFS International Singapore Pte. Ltd and MFS International Australia Pty Ltd 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: 21-Jul-17 4:48:54 PM AEDIV Page 1 of 1
Performance Presentation Report 2017, Q2
GLOSSARY OF INVESTMENT TERMS
56299-I-CT-IV-25Oct17.56MFS® International Value Equity
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.
57299-I-CT-IV-25Oct17.57MFS® International Value Equity
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.
58299-I-CT-IV-25Oct17.58MFS® International Value Equity
Issued in the United States by MFS Institutional Advisors, Inc., a U.S.-based investment advisor and subsidiary of Massachusetts Financial Services Company ("MFS"). Issued inCanada by MFS Investment Management Canada Limited. No securities commission or similar regulatory authority in Canada has reviewed this communication. Issued in theUnited Kingdom by MFS International (U.K.) Limited ("MIL UK"), a private limited company registered in England and Wales with the company number 03062718, and authorisedand regulated in the conduct of investment business by the UK Financial Conduct Authority. MIL UK, an indirect subsidiary of MFS®, has its registered office at One Carter Lane,London, EC4V 5ER and provides products and investment services to institutional investors globally. This material shall not be circulated or distributed to any person other than toprofessional investors (as permitted by local regulations) and should not be relied upon or distributed to persons where such reliance or distribution would be contrary to localregulation. Issued in Hong Kong by MFS International (Hong Kong) Limited ("MIL HK"), a private limited company licensed and regulated by the Hong Kong Securities andFutures Commission (the "SFC"). MIL HK is a wholly-owned, indirect subsidiary of Massachusetts Financial Services Company, a US-based investment advisor and fund sponsorregistered with the US Securities and Exchange Commission. MIL HK is approved to engage in dealing in securities and asset management regulated activities and may providecertain investment services to "professional investors" as defined in the Securities and Futures Ordinance ("SFO"). Issued in Singapore by MFS International Singapore Pte. Ltd.,a private limited company registered in Singapore with the company number 201228809M, and further licensed and regulated by the Monetary Authority of Singapore.
This material is directed at investment professionals for general information use only with no consideration given to the specific investment objective, financial situation andparticular needs of any specific person. Any securities and/or sectors mentioned herein are for illustration purposes and should not be construed as a recommendation forinvestment. Investment involves risk. Past performance is not indicative of future performance. The information contained herein may not be copied, reproduced or redistributedwithout the express consent of MFS Investment Management (“MFS”). While the information is believed to be accurate, it may be subject to change without notice. MFS does notwarrant or represent that it is free from errors or omissions or that the information is suitable for any particular person’s intended use. Except in so far as any liability under any lawcannot be excluded, MFS does not accept liability for any inaccuracy or for the investment decisions or any other actions taken by any person on the basis of the materialincluded. MFS does not authorise distribution to retail investors.
Unless otherwise indicated, logos, product and services names are trademarks of MFS and its affiliates and may be registered in certain countries.
Disclosure