IO (12M FORWARD) P/B RATIO 2011 2012 2013 2014 2015 2016 2017 RETURN ON COMMON EQUITY 14% 13% rc 12% a: 2011 2012 2013 2014 2015 2016 2017 Mam MSCI ACWI Mam MSCI KOREA Hong Kong and China. Despite the recent strong performance, the market is still inexpensive relative to other regions and indices. MS

f a Libor+ benchmark (this can be anything from Libor +300bp to Libor +700bp). That return is also coupled with a target volatility, for example half MSCI ACWI volatility. The volatility target will, of course, be a function of the expected return, but there is a general focus on producing lower volatility r

ing Error" 4.60 424 5.16 Balanced Portfolios•'^ $242.8 -Gross -4.1 -2.2 9.3 9.5 7.2 8.8 (1/89) Net -4.7 -3.0 8.4 8.7 6.4 7.9 70% MSCI ACWI — Net Dividends! 30% BCAG Bond Index' -4.5 -3.7 5.4 6.3 4.6 7.7 -Gross +0.4 +1.5 +3.9 +3.2 +2.6 +1.1 Outperformance (+)1 Underperforma

quickly. MSCI AC World Index The MSCI AC World Index captures large- and mid-cap companies across 23 developed and 23 emerging market countries. MSCI ACWI ex U.S. Index The MSCI ACWI ex U.S. Index captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries (excluding th