mondrian-emerging-markets-equity-fund-l-p - FOIALTS.com · james f. brecker iii, cfa senior vice...

Mondrian Investment Partners Limited Mondrian Investment Partners (U.S.), Inc. Mondrian Investment Group (U.S.), Inc.

Fifth Floor Two Commerce Square 1105 N. Market Street, Suite 1118

10 Gresham Street 2001 Market Street, Suite 3810 Wilmington, DE 19801

London EC2V 7JD Philadelphia, PA 19103 Telephone (302) 428-3839

Telephone 020 7477 7000 Telephone (215) 825-4500

Mondrian Investment Partners Limited is authorised and regulated by the Financial Conduct Authority

www.mondrian.com

Authorized only for use with Qualified Purchasers

A G E N D A

1 ORGANIZATION

2 INVESTMENT PHILOSOPHY

3 PERFORMANCE

4 INVESTMENT STRATEGY

ANY OTHER BUSINESS

P R E S E N T A T I O N T O :

FRESNO COUNTY EMPLOYEES’RETIREMENT ASSOCIATION

M O N D R I A N E M E R G I N G M A R K E T S

E Q U I T Y F U N D , L . P .

March 1, 2017

Representing Mondrian:

ANDREW MILLERCHIEF INVESTMENT OFF ICER,

EMERGING MARKETS EQUIT IES MONDRIAN INVESTMENT PARTNERS L IMITED

JAMES F. BRECKER IIISENIOR VICE PRES IDENT, CL IENT SERVICES

MONDRIAN INVESTMENT PARTNERS (U.S . ) , INC.

3

1703

01 F

resn

oCoE

RS E

MEL

P

MONDRIAN INVESTMENT PARTNERS

BIOGRAPHIES

Andrew MillerCHIEF INVESTMENT OFFICER, EMERGING MARKETS EQUITIES MONDRIAN INVESTMENT PARTNERS LIMITED LONDONMr. Miller has a BA (Hons) degree in History from the University of Birmingham. Prior tojoining Mondrian in 2000, he worked in the Investment Management department ofPricewaterhouseCoopers, where he was responsible for the analysis and audit of variousinvestment vehicles. Whilst at Mondrian, Mr. Miller has specialised in Emerging Marketsand he is now the Chief Investment Officer for this product. Mr. Miller holds the ASIPdesignation and is a member of the CFA Institute and the CFA Society of the UK.

James F. Brecker III, CFASENIOR VICE PRESIDENT, CLIENT SERVICESMONDRIAN INVESTMENT PARTNERS (U.S.), INC. PHILADELPHIAMr. Brecker is a graduate of the University of Richmond, where he earned a Bachelor ofScience degree in Business Administration. He joined Mondrian’s former US affiliate in2000 and is responsible for client service, consultant relations and marketing, focusingprimarily on emerging markets equity strategies. Mr. Brecker is a CFA Charterholder and amember of the CFA Institute and the CFA Society of Philadelphia.

1703

01 F

resn

oCoE

RS E

MEL

P

4

The Fund involves a variety of risks, including, but not limited to, the following.

An investment in the fund is not suitable for all investors and involves the risk of loss. There can be no assurance that the Fund will be able to achieve itsinvestment objectives. The investment return and value of interests in the Fund will fluctuate. When a withdrawal is made, the interests may be worthmore or less than when originally purchased.

Registration - The Fund is not, and does not intend to become, registered as an investment company under the 1940 Act, as amended. Consequently, theFund as a whole is subject to less federal or state regulation and supervision than registered investment companies.

Other Activities - The investment manager manages the investment activities of the Fund and other investment funds and accounts and expects to manageother funds and accounts in the future, including other funds and accounts with objectives similar to those of the Fund.

International Investing - Prospective investors should understand and consider carefully the greater risks involved in investing internationally. Investing insecurities of non-U.S. issuers, positions in which generally are denominated in foreign currencies, and utilization of forward foreign currency contracts, involveboth opportunities and risks not typically associated with investing in U.S. securities. The Fund may invest in emerging markets. The securities markets ofemerging countries are substantially smaller, less developed, less liquid and more volatile than the securities markets of the U.S. and other more developedcountries. The cost of investing in securities of non-U.S. issuers can be higher than the cost of investing in U.S. securities.

Strategy Risks - Other strategy risks include investing in equity securities, foreign custody arrangements, market risks, currency risks, forward contracts onforeign currencies and foreign exchange risks.

Portfolio Illiquidity - The Fund may invest in securities that later become illiquid or otherwise restricted.

Limitations on Transfer - There are restrictions on transferring interests in the Fund.

Limitations on Withdrawals - There are limitations on withdrawals from the Fund with respect to notification, timing and amount that should be understood,prior to investing.

No Secondary Market - There is no secondary market for the Interests, and none is expected to develop.

Valuation of Assets - Uncertainties as to the valuation of portfolio positions could have an adverse effect on the Fund's Net Asset Value if the valuation usedshould prove incorrect.

The foregoing list does not purport to be a complete explanation of risks. Potential investors should read the entire Confidential Information Memorandumfor the Fund and consult with their own financial and tax advisers before determining whether to invest in the Fund. In particular, the ConfidentialInformation Memorandum includes additional information on strategy risks, risks related to the Fund’s structure and tax, regulatory and other risks. Potentialinvestors also should be aware that, if they decide to purchase an interest, they will have no role in the management of the Fund and will be required torely on the expertise of the general partner and the investment manager in dealing with the foregoing (and other) risks on a day-to-day basis.

FUND DISCLOSURE SUMMARY

MONDRIAN EMERGING MARKETS EQUITY FUND, L.P.

1.1

Organization


1.1

SE

CT

ION

1

1703

01 F

resn

oCoE

RS E

MEL

P

1.2


OUR ORGANIZATION

DECEMBER 31, 2016

A SUCCESSFUL, WELL-MANAGED COMPANY

Founded in 1990

Over 25 years of stable, consistent leadership

Approximately US$59 billion under management

AN INDEPENDENT, EMPLOYEE-OWNED COMPANY

Equity ownership plan designed to attract, retain and motivate highlyskilled people

Mondrian is employee owned

Approximately 80 employees are partners today, up from 60 in 2004

A TIME-TESTED INVESTMENT PHILOSOPHY AND PROCESS

All products utilize an income-oriented value discipline

Consistently applied since the company’s founding in 1990

In-depth global fundamental research

A WELL-RESOURCED TEAM

Highly experienced team of 57 investment professionals in London

Low turnover of professional staff

Strong culture of client service and support

SEC

TIO

N1

1.3

1703

01 F

resn

oCoE

RS E

MEL

P


BUSINESS MANAGEMENT

ORGANIZATIONJANUARY 2017

INVESTMENT

CLIENT SERVICES

EMERGINGMARKETS EQUITIES

Andrew MillerCIO Emerging Markets Equities

Ginny ChongGregory HaltonBoris VeselinovichSenior Portfolio Managers

Dan KellySam WyattPortfolio Managers

Michael BrayResearch Analyst

SMALL CAPEQUITIES

Ormala KrishnanCIO Small Cap Equities

Brendan BakerGraeme Coll

Frances CuthbertBhavin ManekAidan NicholsonSenior Portfolio Managers

Alastair CornwellPortfolio Manager

Charl BassonBenjamin Hall

Assistant Portfolio Managers

Elina GrinchenkoResearch Analyst

GLOBAL FIXEDINCOME & CURRENCY

David WakefieldChief Investment Officer

Joanna BatesMatt Day

Solomon PetersSenior Portfolio Managers

David Cudmore Kevin FenwickSarah MitchellPortfolio Managers

Bruno VignotoAssistant Portfolio Manager

Clive GillmoreChief Investment Officer

COMPLIANCE & RISK

John BarrettChief Compliance Officer/MLRO

Ed LambertJamie Shearer

Managers, Compliance & Risk

+ Team (3)

This chart is designed to indicate the staffing resources and management structure at Mondrian Investment Partners Limited and Mondrian Investment Partners (U.S.), Inc. The chart does not attempt to show allfunctions nor reporting and delegation lines, details of which are maintained in separate records. Please note some people may appear on this chart more than once, reflecting various responsibilities.

PH I L AD E L PH I ALONDON

I.T. Paul Fournel

Chief Technology Officer

Dan AtkinsonTechnology Manager

Gary AylettMichael Williams

Business Applications Managers

+ Team (11)

INVESTMENT ADMINJason Andrews

Investment Administration Manager

Rob HoughtonAssistant Operations Manager

+ Team (29)

FINANCE Darren WellsFinancial Controller

+ Team (5)

FINANCIAL ANALYSIS Ian CookeChief Accountant

PERFORMANCEDavid Lourens

Investment Performance Manager

+ Team (3)

GRAPHICSElaine BakerMarketing and Client Presentations Manager

+ Team (2)

INTERNAL AUDIT

Lisa DebenhamInternal Audit Manager

ROTHKO INVESTMENT STRATEGIES

Daniel PhilpsHead of Rothko Investment Strategies

+ Team (2)

Paul RossPresident

Patricia KarolyiExecutive Vice President

Jim BreckerLaura ConlonJames HillDavid HoganJustin RichardsTodd RittenhouseStephen StarnesSenior Vice Presidents

Peter RivielloJackie StamponeCarol StarrVice Presidents

Rebecca FarnsworthAssistant Vice President

+ Team (16)

Russell MackieGlobal Head of Client Services

& Marketing

Andrew KielyManager

Jess HsiaSenior Client Services Executive

Paul DanaswamyClient Services Executive

Gabriella CouperInternal Client Services Assistant

Nicola HilliardInternal Client Services Assistant

HRLouise Poulter

Head of Human Resources

+ Team (2)

BUSINESS MANAGEMENT

John Emberson Warren ShirvellChief Operating Officer Deputy Chief Operating Officer

PA SUPPORT/OFFICE ADMIN

Team (7)

LEGAL

Jane GossGeneral Counsel

Jason MenegakisDeputy General Counsel

Nicola ClarkeSenior Legal Counsel

+ Team (2)(1 in MIP US)

INTERNATIONAL GLOBALEQUITIES EQUITIES

Elizabeth Desmond Clive GillmoreDirector, CIO International Equities Chief Investment Officer

Brendan BakerNigel BlissSteven DutautAileen Gan

Andrew PorterAlex Simcox

Jonathan SpreadSenior Portfolio Manager s

Hamish ParkerDirector

Christopher DavisMatt Gunby

Assistant Portfolio Managers

Natasha NussbaumInvestment Analyst

James FranckenZsolt MesterKim NguyenMelissa PlattBilgin SoyluPaul Thompson

Portfolio Managers

IMPLEMENTATION

Brian HeywoodHead of Implementation

+ Team (4)

TRADING

Clark SimpsonHead of Trading

+ Senior Traders (3)

Nigel MayDeputy Chief Executive Officer

Clive GillmoreChief Executive Officer

David TillesExecutive Chairman

SE

CT

ION

1

1.4


1703

01 F

resn

oCoE

RS E

MEL

P

DEVELOPED MARKETS AND SMALL CAP EQUITIES

Elizabeth Desmond Clive Gillmore Ormala KrishnanDirector & CIO, International Equities CEO & Group CIO CIO, Small Cap Equities

+ team of 24

FIXED INCOME & CURRENCYDavid Wakefield

CIO, Global Fixed Income & Currency

+ team of 7

IMPLEMENTATIONBrian Heywood

Head of Implementation

+ team of 4

TRADINGClark SimpsonHead of Trading

Martin ShawIan Taylor

Arthur van HoogstratenSenior Traders

EMERGINGMARKETS INVESTMENT TEAMJANUARY 2017

EMERGING MARKETSSTRATEGY COMMITTEE

Andrew MillerCIO, Emerging Markets Equities

Ginny ChongGregory HaltonBoris VeselinovichSenior Portfolio Managers

Clive GillmoreCEO & Group CIO

Dan KellySam Wyatt

Portfolio Managers

Michael BrayResearch Analyst

SEC

TIO

N1

1.5

1703

01 F

resn

oCoE

RS E

MEL

P


EMERGINGMARKETS REPRESENTATIVE CLIENT LIST

GOVERNMENT AND LABOR

Alameda County Employees' Retirement Association

Alaska Permanent Fund Corporation

Baltimore County Employees' Retirement System

California State Teachers' Retirement System

City of Cincinnati Retirement System

City of Hartford Municipal Employees' Retirement Fund

Colorado Public Employees' Retirement Association

Durham County Council

Florida State Board of Administration

Fresno County Employees Retirement Association

Funds SA

Inter-Local Pension Fund

North Central States Regional Council of Carpenters Pension Fund

Oklahoma State Regents for Higher Education

Ontario Public Service Employees Union

Sacramento County Employees' Retirement System

San Bernardino County Employees' Retirement Association

San Francisco City and County Retirement System

San Mateo County Employees' Retirement Association

Washington State Investment Board

West Midlands Pension Fund

SUB-ADVISORY

Charles Schwab Investment Management

Delaware Investments

UBS Global Asset Management (Americas) Inc.

CORPORATIONS

American Hospital Association

Care New England

Henry Ford Health Systems

Liberty Mutual Group, Inc.

The Dow Chemical Company

Tribune Media Company

United Church of Christ Pension Boards

ENDOWMENTS AND FOUNDATIONS

Boys Town

Cornell University

Lenoir-Rhyne University

Open Space Institute Land Trust, Inc.

Richard King Mellon Foundation

Springfield Foundation

St. Louis Symphony Orchestra

Texas Tech University System

The Samuel Roberts Noble Foundation, Inc.

University of Kentucky

Washington State University Foundation

Western Illinois University

William H. Miner Foundation

Winthrop Rockefeller Foundation

This representative client list covers all clients with separately managed accounts and investors in Mondrian’s commingled vehicles not subject to confidentiality limitations, invested in the Emerging Markets Equities’products. It is therefore not a complete list of all Mondrian’s clients. It is not known whether the listed clients approve or disapprove of Mondrian or the services provided.

Updated: January 2017

SE

CT

ION

1

1703

01 F

resn

oCoE

RS E

MEL

P


1.6

GLOBAL REPRESENTATIVE CLIENT LIST

This representative client list includes separately managed accounts and participants in Mondrian’s commingled vehicles and is not a complete list of all Mondrian’s clients. The clients and investors not subject toconfidentiality limitations, are chosen by size (largest to smallest) and reflect the balance between the geographic location and main categories of our client base. It is not known whether the listed clients approve ordisapprove of Mondrian or the services provided.

Updated: January 2017

GOVERNMENT AND LABOR

Alameda County Employees' Retirement AssociationAlaska Permanent Fund CorporationBaltimore County Employees' Retirement SystemCalifornia State Teachers' Retirement SystemCity of Cincinnati Retirement SystemColorado Public Employees' Retirement AssociationDurham County CouncilEl Paso Firemen & Policemen's Pension FundFlorida State Board of AdministrationFresno County Employees Retirement AssociationFunds SAGeorgia Division of Investment ServicesIdaho Public Employee Retirement SystemIllinois Municipal Retirement FundLouisiana State Employees' Retirement SystemMassPRIMNew York City Deferred Compensation PlanNew York State Common Retirement FundOklahoma Public Employees Retirement SystemOntario Power Generation Inc.Ontario Public Service Employees UnionParochial Employees’ Retirement System of LouisianaPublic Employees' Retirement System of MississippiSacramento County Employees' Retirement SystemSan Francisco City and County Retirement SystemSan Mateo County E.R.A.South Carolina Retirement SystemsSouthern California UFCWState Universities Retirement SystemTeachers' Retirement System of the State of IllinoisUT-BattelleVermont State Treasurer's OfficeWashington State Investment BoardWest Midlands Pension Fund

SUB-ADVISORY

Bessemer TrustBrown Brothers HarrimanCharles Schwab Investment ManagementDelaware InvestmentsLincoln National Life Insurance Co.UBS Global Asset Management (Americas) Inc.

SUPERANNUATION FUNDS

Mine Wealth + Wellbeing

CORPORATIONS

A.O. Smith CorporationAon Hewitt Group TrustAscension Investment ManagementBank of America CorporationBanner Health SystemBlue Cross & Blue Shield of Massachusetts, Inc.Children's Hospital Los AngelesConAgra Foods, Inc.CSX Corporation, Inc.Dartmouth-Hitchcock Medical CenterEversource EnergyFarmers Group, Inc.Group Health CooperativeHealth Care Service CorporationHoneywell International Inc.Huntington Ingalls Industries, Inc.International Paper CompanyLiberty Mutual Group, Inc.Merck & Co., Inc.Mercy HealthMinisters and Missionaries Benefit BoardNational Grid Investment ManagementNovant Health, Inc.OhioHealthParkland Health & Hospital SystemPfizer Inc.Renown HealthSisters of Mercy Health SystemSouthern California EdisonSouthern CompanyThe Dow Chemical CompanyTribune Media CompanyUnited Church of Christ Pension BoardsUniversity of OttawaValley Children's HospitalVerizon Investment Management Corp.Wal-Mart Stores, Inc.Wells Fargo & Company Cash Balance Plan

ENDOWMENTS AND

FOUNDATIONS

Alfred I. duPont Testamentary TrustBoys TownCommunity Foundation for Southeast MichiganCommunity Foundation of Greater Des MoinesCornell UniversityDonald B. & Dorothy L. Stabler FoundationFurman UniversityGeneral Conference Corporation of Seventh-day AdventistsGeorge I. Alden TrustGonzaga UniversityHenry Ford Health SystemsKemper & Ethel Marley FoundationMissouri Botanical GardenNorthwest Area FoundationRichard King Mellon FoundationRotary InternationalRiverside Healthcare FoundationSan Diego FoundationTexas Tech University SystemThe Annie E. Casey FoundationThe Batchelor Foundation, Inc.The Boston FoundationThe Butler Family FoundationThe Carle FoundationThe Community Foundation for Greater New HavenThe Health FoundationThe Riverside ChurchThe Samuel Roberts Noble Foundation, Inc.University of KentuckyUniversity of Maine SystemUniversity of OttawaUniversity of VermontUNLV FoundationWashington State University FoundationWilliam Penn FoundationWinthrop Rockefeller Foundation

INSURANCE COMPANIES

Ascension Investment ManagementHighmark HealthNuclear Electric Insurance Limited

SEC

TIO

N1

1.7

1703

01 F

resn

oCoE

RS E

MEL

P


DIVERSE INVESTMENT PRODUCTS

Developed Markets Equity• International Equity Ex-US

• International Equity ESG Ex-US

• Focused International Equity Ex-US

• Global Equity

All Country World Equity• All Country World Equity Ex-US

• Focused All Country World Equity Ex-US

• All Country World Equity

Emerging Markets Equity• Emerging Markets Equity

• Focused Emerging Markets Equity

• Emerging Markets Wealth

Small Cap Equity • International Small Cap Equity Ex-US

• Emerging Markets Small Cap Equity

• US Small Cap Equity

Fixed Income• Global Fixed Income (Sovereign and Aggregate)

• International Fixed Income Ex-US

• Emerging Markets Debt (Local, Hard and Blended currency)

• Global Debt Opportunities

• Regional Fixed Income

• Global Inflation-Linked

BUSINESS PROFILEDECEMBER 31, 2016

A number of vehicles are available in each of the above product areas, including separate accounts, limited partnerships, registered mutual funds and UCITS.Please refer to additional information at the end of the book regarding available vehicles and minimum account sizes.

TYPE OF ASSETS MANAGED

(Assets Under Management)

Developed Markets Equity

(41%)All

CountryWorld Equity

(12%)

EmergingMarkets

Equity (23%)

Small CapEquity (13%)

FixedIncome (10%)

Endowments and Foundations

(33%)

Corporations (30%)

Governmentand Labor

Related Funds (21%)

High Net Worth (8%)

Sub Advisory(6%)

InsuranceCompanies (2%)

TYPE OF CLIENTS SERVED(Number of Client Relationships)

SE

CT

ION

1

Investment Philosophy


2.1

SE

CT

ION

2

1703

01 F

resn

oCoE

RS E

MEL

P

2.2


STYLE SUMMARY

INVESTMENTMETHODOLOGY

A value approach which emphasizes yield and future real growthin dividends.

Consistent dividend discount methodology which compares value across allsecurities, markets and sectors.

Analysis of central, best and worst case scenarios.

In-depth worldwide fundamental research with an emphasis oncompany visits.

Long term Purchasing Power Parity approach to currency analysis.

PERFORMANCE CHARACTERISTICS

Seek to produce meaningfully high real returns.

Aim to preserve capital during global market declines.

Returns that typically have shown lower volatility* than the index and mostother managers.

PORTFOLIO CHARACTERISTICS

Focused portfolios with strong value characteristics.

Long term focus resulting in low turnover and reduced transaction costs.

* Please refer to the Standard Deviation chart on page 2.4.

SEC

TIO

N2

2.3

1703

01 F

resn

oCoE

RS E

MEL

P


DEFENSIVE CHARACTERISTICSMONDRIAN EMERGING MARKETS EQUITY COMPOSITE

TEN YEARS ENDED DECEMBER 31, 2016

Source: Mondrian Investment Partners and MSCI

Please see the composite definition provided on the composite disclosure page in the appendix. Generally, a composite includes all accounts managed byMondrian to the same investment strategy.

A Bull Market quarter is defined as one in which the benchmark showed a positive U.S. dollar return, and a Bear Market quarter when the benchmarkshowed a negative U.S. dollar return.

The returns presented on this page are gross of advisory fees and other expenses associated with managing an investment advisory account. Please carefullyreview the disclosure and notes concerning performance calculation and GIPS compliance in the appendix. These provide more information concerning grossperformance results including an illustration of the negative effect of advisory fees on performance. Past performance is not a guarantee of future results.

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Ann

ualiz

ed R

etur

ns (G

ross

of

Fees

)

29.3%

33.8%

-28.7%

-35.4%

3.4% 1.8% 1.8%

Mondrian (Composite)

MSCI EM

US CPI

BULL MARKET BEAR MARKET TOTAL

NUMBER OF QUARTERS

25 15 40

MONDRIAN (COMPOSITE) AGGREGATE PERFORMANCE

397.9% -71.9% 39.8%

MSCI EM INDEX AGGREGATE PERFORMANCE

516.1% -80.5% 20.0%

SE

CT

ION

2

1703

01 F

resn

oCoE

RS E

MEL

P


2.4

STANDARD DEVIATIONEMERGINGMARKETS EQUITY UNIVERSEMONDRIAN EMERGING MARKETS EQUITY COMPOSITE

DECEMBER 31, 2016

Source: Mondrian Investment Partners and Recognized Financial and Statistical Reporting Service

The standard deviation of returns is computed based on returns gross advisory fees and other expenses associated with managing an investment advisoryaccount. Actual returns will be reduced by such fees and expenses. Please carefully review the disclosure in the appendix for more information concerningthese gross performance results including an illustration of the negative effect of advisory fees on performance. Past performance is not a guarantee of futureresults. Supplemental Information complements the Mondrian Emerging Markets Equity Composite disclosure in the appendix. The member count for theEmerging Markets Equity universe was determined by counting the flagship representative institutional tax-exempt accounts for this strategy with both aminimum account size of $100 million and a two year track record.

10%

15%

20%

25%

30%

Ann

ualiz

ed S

tand

ard

Dev

iati

on

LowerRisk

HigherRisk

Last Last Last5 Years 7 Years 10 Years

5th Percentile 13.8 16.4 20.725th Percentile 15.2 17.6 22.6Median 15.8 18.4 23.575th Percentile 16.6 18.9 24.195th Percentile 18.4 20.1 25.5

Member Count 85 73 63

Annualized Standard Deviation:

MondrianComposite 15.1 16.4 20.8RANK 23 4 6

EM 16.2 18.2 23.4

ANNUALIZED

SEC

TIO

N2

Performance


3.1

SE

CT

ION

3

3.2

1703

01 F

resn

oCoE

RS E

MEL

P


PERFORMANCEFRESNO COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION

DECEMBER 31, 2016


Gross performance is net of Transaction Expenses and Administrative Expenses, but gross of Contribution Charges, Withdrawal Charges and ManagementFees (each as described in the Confidential Information Memorandum). Net performance is net of Management Fees, Transaction Expenses andAdministrative Expenses, but gross of Contribution Charges and Withdrawal Charges. The Management Fee is calculated by consistently applying thehighest annual fee rate for the Fund to each monthly return. Contribution Charges and Withdrawal Charges are automatically deducted from subscriptionpayments and redemption proceeds. Management Fees are paid directly by the participants. Participant returns will be reduced by Contribution Charges,Withdrawal Charges and Management Fees, as applicable. Past performance is not a guarantee of future results.

Market Value: US$278,772,787

Fund Fund Relative(Gross) (Net) Benchmark to Net

Period % % % %

Quarter 1, 2016 7.0 6.8 5.7 1.1

Quarter 2, 2016 1.9 1.8 0.7 1.1

Quarter 3, 2016 4.3 4.1 9.0 -4.5

Quarter 4, 2016 -3.6 -3.7 -4.2 0.5

2016 9.7 9.0 11.2 -1.9

3 Years (annualized) -2.4 -3.0 -2.6 -0.4

5 Years (annualized) 1.4 0.8 1.3 -0.5

10 Years (annualized) 3.3 2.6 1.8 0.8

Since Inception November 17, 2005 (annualized) 5.7 5.0 5.0 0.0

SEC

TIO

N3

3.3

1703

01 F

resn

oCoE

RS E

MEL

P


COUNTRY RETURNS –MSCI EM INDEXDECEMBER 31, 2016

QUARTER 4, 2016 2016

Local Market Currency Change US$ Local Market Currency Change US$

Return (%) vs. US$ (%) Return (%) Return (%) vs. US$ (%) Return (%)

EM ASIA -3.1 -3.1 -6.1 6.9 -0.7 6.1

China -7.1 0.0 -7.1 1.0 -0.1 0.9

India -6.2 -1.9 -8.0 1.1 -2.5 -1.4

Indonesia -4.8 -3.1 -7.8 14.3 2.3 17.0

Korea 3.5 -8.8 -5.6 12.0 -2.9 8.7

Malaysia -0.6 -7.8 -8.4 0.4 -4.3 -3.9

Philippines -10.6 -2.4 -12.8 -1.3 -5.3 -6.6

Taiwan 0.6 -2.7 -2.2 16.3 1.9 18.5

Thailand 1.5 -3.2 -1.8 26.0 0.5 26.6

EM EMEA 3.7 -1.8 1.8 12.2 6.9 19.9

Czech Republic 2.9 -6.1 -3.4 -2.2 -2.9 -5.0

Egypt 56.5 -51.0 -23.3 104.8 -56.8 -11.5

Greece 22.9 -6.1 15.3 -9.5 -2.9 -12.1

Hungary 16.3 -6.1 9.3 36.3 -0.7 35.4

Poland 12.8 -8.3 3.4 5.8 -5.4 0.1

Qatar 0.6 0.0 0.6 6.2 0.0 6.3

Russia 15.6 2.6 18.6 34.1 15.4 54.8

South Africa -4.6 0.6 -4.0 4.1 13.3 17.9

Turkey 1.1 -14.7 -13.7 10.3 -17.0 -8.5

United Arab Emirates -1.5 0.0 -1.5 13.6 0.0 13.6

EM LATIN AMERICA 1.2 -2.1 -0.9 24.3 5.4 31.0

Brazil 2.2 -0.2 2.0 36.8 21.6 66.2

Chile 3.9 -1.6 2.2 9.2 5.8 15.6

Colombia 1.8 -4.1 -2.3 19.6 5.7 26.5

Mexico -1.9 -6.1 -7.9 8.4 -16.2 -9.2

Peru 2.5 0.0 2.5 55.6 0.0 55.6

MSCI EM -1.4 -2.8 -4.2 9.7 1.4 11.2

Source: MSCI

SE

CT

ION

3

1703

01 F

resn

oCoE

RS E

MEL

P


3.4

SECTOR RETURNS –MSCI EM INDEXDECEMBER 31, 2016

Source: MSCI

QUARTER 4, 2016 2016US$ US$

Return (%) Return (%)

CONSUMER DISCRETIONARY -9.5 0.9Automobiles & Components -7.7 3.1

Consumer Durables & Apparel -8.7 -3.5

Consumer Services -7.1 17.3

Media -15.4 -0.6

Retailing -7.0 -4.2

CONSUMER STAPLES -10.5 0.3Food & Staples Retailing -4.7 10.3

Food Beverage & Tobacco -11.5 -0.2

Household & Personal Products -15.0 -10.1

ENERGY 8.0 36.5

FINANCIALS -0.7 12.9Banks -0.5 18.6

Diversified Financials -2.4 10.0

Insurance -0.4 -4.1

Real Estate -10.5 -3.1

HEALTH CARE -9.6 -7.5Health Care Equipment & Services -7.3 3.8

Pharmaceuticals Biotechnology & Life Sciences -10.4 -11.4

INDUSTRIALS -6.2 -1.9Capital Goods -5.4 -1.0

Commercial & Professional Services -10.9 -18.6

Transportation -7.8 -2.7

INFORMATION TECHNOLOGY -6.3 16.8Software & Services -12.7 6.8

Technology Hardware & Equipment 0.5 26.5

Semiconductors & Semiconductor Equipment -2.7 26.5

MATERIALS 4.2 31.4

TELECOMMUNICATION SERVICES -6.2 2.0

UTILITIES -6.8 3.2

MSCI EM -4.2 11.2

SEC

TIO

N3

3.5

1703

01 F

resn

oCoE

RS E

MEL

P



Because attribution information is calculated using Mondrian’s accounting system data and not official Net Asset Value data of the Fund, timing of theaccounting of Administrative Expenses and pricing for securities may differ from official Net Asset Value data. Performance provided is net of TransactionExpenses and Administrative Expenses but gross of Contribution Charges, Withdrawal Charges and Management Fees (each as described in theConfidential Information Memorandum). Contribution and Withdrawal Charges are automatically deducted from subscription payments and redemptionproceeds. Management Fees are paid directly by the participants. Participant returns will be reduced by Contribution Charges, Withdrawal Chargesand Management Fees paid. Please carefully review the disclosure for more information concerning these gross performance results including anillustration of the negative effect of fees on performance. Past performance is not a guarantee of future results.

PERFORMANCE SUMMARYQUARTER 4, 2016

PERFORMANCE ATTRIBUTION %RELATIVE

RETURN

RELATIVE MARKET

CONTRIBUTION

RELATIVE CURRENCY

CONTRIBUTION

STOCK

SELECTION

N E G A T I V E P O S I T I V ECOUNTRY CONTRIBUTION

Overweight India Underweight China

Underweight Korea Overweight Middle East

No exposure to CEE and Greece

CURRENCY CONTRIBUTIONUnderweight China Underweight Korea

Overweight Malaysia Overweight Middle East

STOCK & SECTOR SELECT IONStock selection in Mexico Stock selection in China, South and Philippines Africa and India

Positioning in financials Stock selection in consumer and telecoms sectors and IT

PLDT - Philippines Suzano Papel - Brazil

Fibra Uno - Mexico Cairn India

Belle - China Gazprom - Russia

+0.6 -0.4 +0.1 +0.9

SE

CT

ION

3

3.6

1703

01 F

resn

oCoE

RS E

MEL

P


PERFORMANCE SUMMARY2016

PERFORMANCE ATTRIBUTION %RELATIVE

RETURN

RELATIVE MARKET

CONTRIBUTION

RELATIVE CURRENCY

CONTRIBUTION

STOCK

SELECTION

N E G A T I V E P O S I T I V ECOUNTRY CONTRIBUTION

Overweight India Underweight China

Overweight Malaysia Overweight Peru

Underweight Brazil Overweight Taiwan

CURRENCY CONTRIBUTIONOverweight Mexico Underweight Korea

Underweight Brazil Underweight China

STOCK & SECTOR SELECT IONStock selection in Brazil, Mexico Stock selection in India and Philippines & Korea

Positioning in telecoms Stock selection in industrials, consumer sectors and health careUnderweight materials

Fibra Uno - Mexico Cairn India

PLDT - Philippines Credicorp - Peru

Beijing Enterprises - China CCR - Brazil

-1.3 +0.2 -1.1 -0.4


Because attribution information is calculated using Mondrian’s accounting system data and not official Net Asset Value data of the Fund, timing of theaccounting of Administrative Expenses and pricing for securities may differ from official Net Asset Value data. Performance provided is net of TransactionExpenses and Administrative Expenses but gross of Contribution Charges, Withdrawal Charges and Management Fees (each as described in theConfidential Information Memorandum). Contribution and Withdrawal Charges are automatically deducted from subscription payments and redemptionproceeds. Management Fees are paid directly by the participants. Participant returns will be reduced by Contribution Charges, Withdrawal Chargesand Management Fees paid. Please carefully review the disclosure for more information concerning these gross performance results including anillustration of the negative effect of fees on performance. Past performance is not a guarantee of future results.

SEC

TIO

N3

Investment Strategy


4.1

SE

CT

ION

4

4.2

1703

01 F

resn

oCoE

RS E

MEL

P


COUNTRY ALLOCATIONDECEMBER 31, 2016


1 2 3 4 5FORECAST REALRETURN (%)

MIN/MAXALLOCATION (%)

FUNDALLOCATION (%)

EMWEIGHT (%)

CURRENCYHEDGE (%)

Asia 65.0 70.1

China 6.3 0 – 30 18.1 26.5

India 6.1 0 – 20 12.7 8.3

Indonesia 5.7 0 – 10 2.2 2.6

Korea 6.1 0 – 30 9.5 14.4

Malaysia 6.0 0 – 10 5.0 2.5

Philippines 5.9 0 – 10 1.5 1.2

Taiwan 6.2 0 – 25 13.4 12.2

Thailand 6.1 0 – 10 2.6 2.3

Europe, Middle East & Africa 17.5 16.6

Poland 4.9 0 – 10 — 1.1

Russia 5.9 0 – 10 3.9 4.5

South Africa 5.3 0 – 15 6.4 7.1

Turkey 6.9 0 – 10 1.6 1.0

Middle East (Qatar & UAE) 6.6 0 – 10 4.9 1.8

Others 0 – 10 0.7 1.0

Latin America 13.3 13.3

Brazil 6.0 0 – 15 6.2 7.7

Chile 5.4 0 – 10 0.6 1.2

Mexico 5.5 0 – 15 5.0 3.5

Others 0 – 10 1.5 0.9

Others 2.7 —

United Kingdom 0 – 10 1.6 —

United States 0 – 10 1.2 —

1 Calculated using Mondrian’s dividend discount methodology and long term purchasing power parity currency analysis.These forecast “real” annualized market returns are used solely as a basis for making judgements about country allocationsand are not intended to be indications of expected returns. Forecast real returns are calculated as at December 31, 2016.

2 A minimum/maximum country allocation policy allows broad flexibility while guarding against concentration relative tobenchmark. These minimums and maximums represent Mondrian’s current internal policy and can be changed at anytime. The governing documents for the Fund do not contain minimum or maximum allocations.

3 Fund allocation

4 Benchmark weights

5 Currency hedges are put into place if, in Mondrian’s judgement, appropriate.

SEC

TIO

N4

4.3

1703

01 F

resn

oCoE

RS E

MEL

P


PORTFOLIODECEMBER 31, 2016

ASIA* 65.0 . . . . . . 70.1 12.7 . . . . . . 13.8 3.5 . . . . . . . . 2.4CHINA 18.1 . . . . . . . . 26.5 10.7 . . . . . . . . 13.0 3.8 . . . . . . . . . . 2.2

Beijing Enterprises 1.5 7.7 2.6Belle 1.5 9.3 4.6China BlueChemical 0.5 44.3 4.2China Construction Bank 2.3 5.8 5.1China Mobile 2.9 13.5 3.3China Resources Power 1.7 6.9 7.1CSPC Pharmaceutical 0.6 25.2 1.3Golden Eagle 1.0 24.5 2.9Hengan 0.9 18.6 3.8Jiangsu Expressway 1.3 18.9 4.6Sands China 0.4 27.5 5.9Want Want 0.6 15.1 2.9WH Group 2.8 12.9 2.0INDIA* 12.7 . . . . . . . . . 8.3 19.7 . . . . . . . . 19.8 2.2 . . . . . . . . . . 1.4

Axis Bank 0.5 17.0 1.1Bajaj Auto 2.2 18.7 2.1Cairn India* 1.7 Loss 1.2HCL Technologies 2.0 15.5 3.0HDFC 1.3 18.0 1.3Indiabulls Housing Finance 1.3 10.6 5.5Infosys 0.8 16.5 2.5Larsen & Toubro 1.0 24.7 1.4Power Grid 0.5 14.0 1.3Reliance Industries 1.3 12.1 1.0INDONESIA 2.2 . . . . . . . . . 2.6 12.4 . . . . . . . . 18.5 2.5 . . . . . . . . . . 2.1

Bank Mandiri 0.9 15.2 2.3Bank Rakyat 1.3 11.0 2.7KOREA 9.5 . . . . . . . . 14.4 9.4 . . . . . . . . 10.9 2.5 . . . . . . . . . . 1.7

Hyundai Mobis 2.4 7.8 1.3Hyundai Motor 0.5 4.4 4.1Kangwon Land 0.5 15.0 2.7Samsung Electronics 3.2 11.8 1.6Shinhan Financial 0.4 8.4 2.7SK Telecom 2.5 10.7 4.5MALAYSIA 5.0 . . . . . . . . . 2.5 12.3 . . . . . . . . 16.5 3.4 . . . . . . . . . . 3.0

AMMB 1.0 10.3 3.6Genting Malaysia 1.1 16.9 1.6Malayan Banking 1.3 13.6 6.1Tenaga Nasional 1.5 10.6 2.3PHILIPPINES 1.5 . . . . . . . . . 1.2 18.7 . . . . . . . . 18.6 7.8 . . . . . . . . . . 1.7

PLDT 1.5 18.7 7.8TAIWAN 13.4 . . . . . . . . 12.2 14.1 . . . . . . . . 15.3 5.0 . . . . . . . . . . 4.0

Asustek 1.3 10.5 5.7CTBC Financial Holding 1.0 11.0 4.6Mediatek 1.4 14.8 5.1Mega Financial 1.3 12.4 6.5Novatek Microelectronics 0.9 12.3 8.5Quanta Computer 0.9 14.5 6.3Taiwan Mobile 2.1 18.1 5.4Taiwan SMC 3.3 15.3 3.3Teco Electric & Machinery 1.2 17.3 2.9THAILAND 2.6 . . . . . . . . . 2.3 14.4 . . . . . . . . 15.9 2.6 . . . . . . . . . . 2.9

Kasikornbank 1.5 12.0 2.3Thai Union Group 1.1 19.6 3.0

CONTINUED ON NEXT PAGE

HOLDINGS (%) FUND EM

P/E RATIOFUND EM

DIVIDEND YIELD (%) FUND EM


*Due to a small negative PE on Cairn India, overall PE numbers are distorted. Excluding Cairn India from calculations would give the following results:Asia 12.2, India 15.5, and Portfolio P/E 11.9.

SE

CT

ION

4

4.4

1703

01 F

resn

oCoE

RS E

MEL

P


PORTFOLIODECEMBER 31, 2016

EUROPE, MIDDLE EAST & AFRICA 17.5 . . . . . . 16.6 10.6 . . . . . . 13.8 5.5 . . . . . . . . 3.4KAZAKHSTAN 0.4 . . . . . . . . . . . - 5.8 . . . . . . . . . . . - - . . . . . . . . . . . . . -

KazMunaiGas 0.4 5.8 0.0

QATAR 2.9 . . . . . . . . . 0.9 13.5 . . . . . . . . 14.7 2.8 . . . . . . . . . . 3.9Qatar Electricity & Water 1.7 15.7 3.3Qatar National Bank 1.2 11.2 2.1

ROMANIA 0.3 . . . . . . . . . 0.0 10.4 . . . . . . . . . . . - 10.8 . . . . . . . . . . . . -Romgaz 0.3 10.4 10.8

RUSSIA 3.9 . . . . . . . . . 4.5 6.1 . . . . . . . . . 8.4 5.2 . . . . . . . . . . 4.0Gazprom 2.6 5.0 5.1Lukoil 1.3 10.7 5.4

SOUTH AFRICA 6.4 . . . . . . . . . 7.1 19.2 . . . . . . . . 20.6 5.9 . . . . . . . . . . 3.1Bidvest 0.5 17.3 3.9Growthpoint Properties 0.9 13.8 7.1MTN Group 1.4 79.2 8.6Redefine Properties 0.6 15.1 7.7Richemont 0.5 19.9 2.8Woolworths 2.4 15.6 4.4

TURKEY 1.6 . . . . . . . . . 1.0 10.4 . . . . . . . . . 9.3 6.6 . . . . . . . . . . 2.8Tupras 0.7 9.8 9.2Turk Telekom 0.9 10.9 4.6

UAE 2.0 . . . . . . . . . 0.9 9.4 . . . . . . . . 11.9 7.8 . . . . . . . . . . 4.4First Gulf Bank 2.0 9.4 7.8

LATIN AMERICA 13.3 . . . . . . 13.3 11.9 . . . . . . 19.6 4.1 . . . . . . . . 2.9BRAZIL 6.2 . . . . . . . . . 7.7 10.2 . . . . . . . . 18.6 3.6 . . . . . . . . . . 3.4

Ambev 0.9 20.8 3.5CCR 1.4 15.8 4.8Cielo 1.5 16.4 2.4Suzano Papel Pref 2.4 6.3 3.8

CHILE 0.6 . . . . . . . . . 1.2 15.4 . . . . . . . . 18.3 4.8 . . . . . . . . . . 2.7Banco Santander-Chile 0.6 15.4 4.8

MEXICO 5.0 . . . . . . . . . 3.5 13.9 . . . . . . . . 21.7 5.4 . . . . . . . . . . 2.0Arca Continental 0.4 20.7 1.7Fibra Uno 2.5 11.8 6.2Gentera 0.6 14.6 2.3Kimberly-Clark de Mexico 0.1 24.0 4.1Santander Mexico 0.6 13.1 8.6Walmart Mexico 0.8 21.6 4.5

PERU 1.5 . . . . . . . . . 0.4 13.2 . . . . . . . . 20.9 1.5 . . . . . . . . . . 1.1Credicorp 1.5 13.2 1.5

OTHERS 2.7 . . . . . . . . . - 19.4 . . . . . . . . . - 3.0 . . . . . . . . . . -UNITED KINGDOM 1.6 . . . . . . . . . . . - 21.0 . . . . . . . . . . . - 3.2 . . . . . . . . . . . . -

Unilever 1.6 21.0 3.2

UNITED STATES 1.2 . . . . . . . . . . . - 17.7 . . . . . . . . . . . - 2.8 . . . . . . . . . . . . -Abbott Laboratories 1.2 17.7 2.8

CASH 1.5 . . . . . . . . . - - . . . . . . . . . . . - 1.0 . . . . . . . . . . -

TOTAL 100.0 100.0 12.2 14.3 3.9 2.6


HOLDINGS (%) FUND EM

P/E RATIOFUND EM

DIVIDEND YIELD (%) FUND EM

SEC

TIO

N4

4.5

1703

01 F

resn

oCoE

RS E

MEL

P


4.5Source: Mondrian Investment Partners and MSCI

SECTOR ALLOCATIONDECEMBER 31, 2016

Cash

Health Care

Materials

Real Estate

Utilities

Industrials

Energy

Consumer Staples

Telecommunication Services

Consumer Discretionary

Information Technology

Financials

0% 10% 20% 30%

20.7%

15.4%

12.5%

11.4%

9.2%

8.3%

6.9%

5.4%

4.0%

2.9%

1.7%

1.5%

Fund

0% 10% 20% 30%

24.4%

23.3%

10.3%

5.9%

7.2%

7.9%

5.8%

2.9%

2.6%

7.4%

MSCI EM

2.5%

-3.7%

-7.9%

2.2%

5.5%

2.0%

0.4%

1.1%

2.5%

1.4%

-4.5%

-0.8%

Relative

SE

CT

ION

4


1703

01 F

resn

oCoE

RS E

MEL

P

4.6

SUMMARY FUND CHARACTERISTICSDECEMBER 31, 2016

Fund EM EAFE0

0

1

2

2

2Price to Book Value Ratio

1.5 1.5 1.6

Fund EM EAFE0

3

6

9

12Price to Cash Flow Ratio

7.68.6

9.9

Fund* EM EAFE0

5

10

15

20

25Price to Earnings Ratio

12.214.3

20.0

Fund EM EAFE0%

1%

2%

3%

4%

5%Dividend Yield

3.9%

2.6%3.1%

Market Capitalization(Weighted Average)

Fund: US$37.6 billion

EM: US$48.4 billion

Fund Turnover

12 months to Dec. 31, 2016: 26.9%

12 months to Dec. 31, 2015: 20.6%


*Due to a small negative PE on Cairn India, overall PE numbers are distorted. Excluding Cairn India from calculations would reduce the Portfolio PE to 11.9.

2.5

2

1.5

1

.5

0

SEC

TIO

N4

Appendix

5.2 TRANSACTIONS

5.6 FRAMEWORK FOR DECISIONMAKING

5.7 PERFORMANCE

5.10 KEY BIOGRAPHIES

5.13 IMPORTANT INFORMATION


5.1

SE

CT

ION

5

5.2

1703

01 F

resn

oCoE

RS E

MEL

P


BUY

COUNTRY STOCK DATE

INDIA Reliance Industries Oct

CHINA Belle (Add) Oct & Nov

MEXICO Fibra Uno (Add) Oct & Nov

RUSSIA Gazprom (Add) Oct & Nov

SOUTH AFRICA Woolworths (Add) Oct & Nov

CHINA China Construction Bank Nov

INDIA Power Grid Nov

MEXICO Walmart Mexico Nov

KOREA Shinhan Dec

SELL

COUNTRY STOCK DATE

KOREA Samsung Electronics (Reduce) Oct & Nov

TAIWAN Taiwan SMC (Reduce) Oct & Nov

INDIA HDFC (Reduce) Oct & Nov

INDIA Cairn India (Reduce) Oct & Nov

SOUTH AFRICA Richemont (Reduce) Oct — Dec

CHINA Sands China (Reduce) Nov & Dec

PERU Credicorp (Reduce) Nov

CHILE CCU Dec

MEXICO Grupo Aeroportuario Pacifico Dec

MEXICO Kimberly-Clark de Mexico Dec

TRANSACTION SUMMARYQUARTER 4, 2016

SEC

TIO

N5

5.3

1703

01 F

resn

oCoE

RS E

MEL

P



BUY

COUNTRY STOCK DATE

RUSSIA Lukoil Aug

THAILAND Kasikornbank Aug

CHINA CSPC Pharmaceutical Sep

SELL

COUNTRY STOCK DATE

UNITED STATES Yum! Brands Aug

CHINA Huabao Intl Sep

CHINA Hengan (Reduce) Sep

CHINA Want Want (Reduce) Jul & Sep

SE

CT

ION

5

5.4

1703

01 F

resn

oCoE

RS E

MEL

P



BUY

COUNTRY STOCK DATE

BRAZIL Suzano Papel Pref Apr

SOUTH AFRICA Richemont Apr

SOUTH AFRICA Woolworths Apr

INDIA HCL Technologies Jun

SELL

COUNTRY STOCK DATE

BRAZIL CPFL Energia Apr

BRAZIL Ecorodovias Apr

INDONESIA Perusahaan Gas Apr

SOUTH AFRICA SABMiller Apr

INDIA Infosys (Reduce) Apr & Jun

THAILAND PTT May

SOUTH AFRICA Bid Corp Jun

SEC

TIO

N5

5.5

1703

01 F

resn

oCoE

RS E

MEL

P


BUY

COUNTRY STOCK DATE

UNITED STATES Abbott Labs Feb

KOREA Samsung Electronics (Add) Jan-Mar

CHINA China Mobile (Add) Jan-Mar

KOREA SK Telecom (Add) Jan-Mar

CHINA Want Want (Add) Jan-Mar

CHINA Beijing Enterprises (Add) Mar

SELL

COUNTRY STOCK DATE

BRAZIL TAESA Jan

CHILE Enersis Feb

INDIA Rural Electrification Feb

BRAZIL Vale Mar

CHINA Mindray Medical Mar

COLOMBIA BanColombia Mar


SE

CT

ION

5

1703

01 F

resn

oCoE

RS E

MEL

P


5.6

FRAMEWORK FOR DECISIONMAKING

Country Analysis and Valuation

• Long-term prospects and risks

• Demographics, productivity, economic profile, per capita comparisons

• Government interference and politics

Currency Valuation

• Defensive approach

Idea Generation

• Use of screens to include - value metrics, balance sheet, liquidity

• Sector considerations, ESG factors

Extensive Company Analysis

• Includes research trips, meetings in London, conferences, phone calls

• Results in a thorough understanding of long-term sustainable profitability and risks

• Detailed financial modelling to project real dividend growth for DDM

Investment Decision

• Team discussion and refinement of base, worst and best case

• On basis of approved valuation, consider appropriate action

• Andrew Miller has ultimate decision making capability

PORTFOLIO60-100 stocks• Consistent with country valuations whilst ensuring diversification

Formal bi-weekly meeting• Continual assessment with strategic changes if necessary

SEC

TIO

N5

5.7

1703

01 F

resn

oCoE

RS E

MEL

P



Performance is net of Transaction Expenses and Administrative Expenses but gross of Contribution Charges, Withdrawal Charges and Management Fees(each as described in the Confidential Information Memorandum). Contribution Charges and Withdrawal Charges are automatically deducted fromsubscription payments and redemption proceeds. Management Fees are paid directly by the participants. Participant returns will be reduced by ContributionCharges, Withdrawal Charges and Management Fees paid. Please carefully review the disclosure at the back of this book for more information concerningthese gross performance results including an illustration of the negative effect of fees on performance. Past performance is not a guarantee of future results.

FUND PERFORMANCEDECEMBER 31, 2016

Fund Benchmark RelativePeriod % % %

2005 30.7 34.0 -2.5

2006 26.9 32.2 -4.0

2007 30.4 39.4 -6.4

2008 -45.0 -53.3 17.8

2009 71.3 78.5 -4.0

2010 18.4 18.9 -0.4

2011 -11.2 -18.4 8.8

2012 23.1 18.2 4.2

2013 -6.4 -2.6 -3.9

2014 0.7 -2.2 2.9

2015 -15.7 -14.9 -1.0

Quarter 1, 2016 7.0 5.7 1.2

Quarter 2, 2016 1.9 0.7 1.3

Quarter 3, 2016 4.3 9.0 -4.3

Quarter 4, 2016 -3.6 -4.2 0.6

2016 9.7 11.2 -1.3

3 Years (annualized) -2.4 -2.6 0.2

5 Years (annualized) 1.4 1.3 0.1

10 Years (annualized) 3.3 1.8 1.4

Fund Inception January 3, 2005 (annualized) 7.2 6.5 0.6

SE

CT

ION

5

5.8

1703

01 F

resn

oCoE

RS E

MEL

P


FRESNO COUNTYEMPLOYEES’ RETIREMENT ASSOCIATION

DECEMBER 31, 2016

Statement of Changes in Net Asset ValueFor the Month Ended December 31, 2016

Market Value Summary [1] Current Period Year To DateBeginning Net Asset Value $273,784,411 $232,263,145Gross Contributions [2] 0 25,000,000Transaction Charge (Contribution and Withdrawal) 0 (136,909)Ordinary Income/(Loss) 826,288 8,424,005Unrealized Gains/(Losses) 3,567,361 28,520,691Realized Gains/(Losses) 594,726 (15,298,145)Gross Withdrawals [2] 0 0

Ending Net Asset Value $278,772,787 $278,772,787

Unit Value Summary [3]Beginning Units 12,140,494.3763Current Period Unit Purchases 0.0000Current Period Unit Sales 0.0000Ending Units 12,140,494.3763

Current Period Beginning Unit Value $22.5513

Current Period Ending Unit Value $22.9622

Performance Summary [4] [5] [6] [7]Since Initial

Current Current Year To One Three Five ContributionMonth Quarter Date Year Years Years 11/17/2005

Participant 1.82% (3.58%) 9.70% 9.70% (2.37%) 1.41% 5.70%MSCI EM, Net 0.22% (4.16%) 11.19% 11.19% (2.55%) 1.28% 5.05%Relative Performance 1.60% 0.61% (1.34%) (1.34%) 0.19% 0.14% 0.63%

[1] The above unaudited amounts represent your allocable share of economic income and do not reflect adjustments required under the Internal RevenueCode to calculate taxable income.

[2] Gross contributions and gross withdrawals of cash are shown prior to the application of the contribution and withdrawal charges described in theConfidential Information Memorandum.

[3] Each investor's allocation of the Funds' economic income and the determination of each investor's capital account and percentage interest are calculatedin accordance with the Limited Partnership Agreement of the Fund. Units shown above are merely for recordkeeping purposes and are determined based oneach investor's capital account and percentage interest.

[4] All performance provided is net of Transaction Expenses and Administrative Expenses but gross of Contribution Charges, Withdrawal Charges andManagement Fees (each as described in the Confidential Information Memorandum). Contribution Charges and Withdrawal Charges are automaticallydeducted from subscription payments and redemption proceeds. Management Fees are paid directly by the participants. Participant returns will be reducedby Contribution Charges, Withdrawal Charges and Management Fees paid.

[5] Performance returns for periods of one year or less are shown as cumulative (including when the period Since Initial Contribution is less than oneyear). Performance returns for periods of over one year are shown as annualized. Relative performance is calculated on a geometric basis.

[6] Past performance is not indicative of future results. An investment in the Fund involves the risk of loss. The investment return and value of interests inthe Fund will fluctuate. When a withdrawal is made, the interest may be worth more or less than when originally purchased.

[7] There can be no assurance that the investment objectives of the Fund will be achieved.

SEC

TIO

N5

5.9

1703

01 F

resn

oCoE

RS E

MEL

P

MONDRIAN INVESTMENT PARTNERS LIMITED

DISCLOSURE – EMERGINGMARKETS EQUITY COMPOSITE

2006 26.98% 25.72% 32.17% 14.62% 17.31% 11 0.40% 5,206.2 53,1029.80

2007 30.46% 29.16% 39.39% 14.54% 18.10% 11 0.42% 6,471.7 64,33810.06

2008 -44.79% -45.34% -53.33% 24.46% 28.67% 10 1.16% 2,873.3 48,2335.96

2009 71.29% 69.58% 78.51% 28.32% 32.34% 10 0.71% 4,603.9 64,3957.15

2010 18.52% 17.34% 18.88% 28.92% 32.58% 11 0.31% 5,386.4 68,3867.88

2011 -11.12% -12.00% -18.42% 22.69% 25.76% 11 0.25% 4,121.4 65,8916.25

2012 23.08% 21.86% 18.22% 18.77% 21.50% 13 0.30% 5,107.5 68,2487.48

2013 -6.27% -7.20% -2.60% 17.62% 19.04% 10 0.10% 4,408.0 70,3566.27

2014 0.86% -0.14% -2.19% 15.22% 15.00% 9 0.25% 4,859.8 64,1027.58

2015 -15.68% -16.52% -14.92% 13.59% 14.06% 10 0.14% 4,729.5 56,8578.32

2016 (to Dec 31) 9.66% 8.57% 11.19% 14.31% 16.07% 11 0.94% 5,719.6 59,0339.69

This composite was created in August 1996.•Past performance is not a guarantee of future results.•

• A complete list and description of all firm composites is available on request.

Mondrian Investment Partners Limited (“Mondrian”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this reportin compliance with the Global Investment Performance Standards (GIPS®). Mondrian has been independently verified for the periods 1 January 1993 to 31 December 2015.

The Firm is defined as all discretionary portfolios managed by Mondrian.

Mondrian is a value-oriented defensive manager seeking to achieve high real returns for its clients. Mondrian invests mainly in securities where rigorous dividend discountanalysis identifies value in terms of the long-term flows of income. Mondrian’s methodology is applied consistently to markets and individual securities, both bonds and equities.

The Emerging Markets Equity Composite includes US dollar based discretionary fee paying portfolios, measured against the Morgan Stanley Capital International EM orequivalent Index net of US withholding taxes. The portfolios are invested in primarily in publicly traded companies based in an Emerging Market, or deriving a majority ofrevenue within Emerging economies. Shares may, however, be listed on more developed exchanges.

Portfolios are valued on a trade date basis using accrual accounting. Returns are calculated using the modified Dietz method and then weighted by using beginning-of-periodmarket values to calculate the monthly composite returns. Portfolio returns are calculated net of irrecoverable withholding tax on dividend income. New portfolios areincluded in the first full month of investment in the composite's strategy. Terminated portfolios remain in the composite through the last full month of investment. Additionalinformation regarding the valuing of portfolios, calculating performance, and preparing compliant presentations are available upon request.

Composite and benchmark standard deviation are measured as the rolling 3 year annualised standard deviation of monthly returns. The dispersion of annual returns of portfolioswithin the composite (Composite Dispersion), is measured by the standard deviation of the equal-weighted returns of portfolios represented within the composite for the full year.

Performance results marked “Gross” do not reflect deduction of investment advisory fees. Investment returns will be reduced accordingly. For example, if a 1.00% advisory feewere deducted quarterly (0.25% each quarter) and the three year gross annual returns were 10.00%, 3.00% and -2.00%, giving an annualized return of 3.55% beforededuction of advisory fees, then the deduction of advisory fees would result in three year net annual returns of 8.91%, 1.98% and -2.97% giving an annualized net return of2.52%.

Performance returns marked “Net” reflect deduction of investment advisory fees and are calculated by deducting a quarterly indicative fee from the quarterly composite return.The indicative fee is defined as being the effective fee rate (or average weighted fee) at the composite’s minimum account size as set out below. Actual net compositeperformance would be higher than the indicative performance shown because some accounts have sliding fee scales and accordingly lower effective fee rates.

Mondrian’s investment advisory fees are described in Part II of its Form ADV. A representative United States fee schedule for institutional accounts is provided below, althoughit is expected that from time to time the fee charged will differ from the below schedule depending on the country in which the client is located and the nature, circumstancesrequirements of individual clients.The fees will be charged as follows: the first US$50m at 1.10%; the next US$50m at 0.90%; the next US$100m at 0.75% and amountsover US$200m at 0.60%. Minimum segregated portfolio size is currently US$100 million (or fees equivalent thereto).

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 andprocedures are designed to calculate and present performance in compliance with the GIPS standards. Additional third party Performance Examination under GIPS of thiscomposite’s results has also been undertaken from 1 August 1996 to 31 December 2015. The verification and performance examination reports are available upon request.

SE

CT

ION

5

1703

01 F

resn

oCoE

RS E

MEL

P


5.12

ANDREWMILLER, Chief Investment Officer, Emerging Markets Equities Mr. Miller has a BA (Hons) degree in History from the University of Birmingham. Prior to joining Mondrian in 2000,he worked in the Investment Management department of PricewaterhouseCoopers, where he was responsible for theanalysis and audit of various investment vehicles. Whilst at Mondrian, Mr. Miller has specialised in Emerging Marketsand he is now the Chief Investment Officer for this product. Mr. Miller holds the ASIP designation and is a member ofthe CFA Institute and the CFA Society of the UK.

GINNY CHONG, Senior Portfolio Manager Prior to joining Mondrian in 2000, Ms. Chong worked for PricewaterhouseCoopers in Vancouver, within the CorporateFinance and Investment Banking Division where she qualified as a Canadian Chartered Accountant. Ms. Chong has adegree in Commerce from the University of British Columbia, Vancouver. Ms. Chong is presently a senior portfoliomanager within the Emerging Markets Team. Ms. Chong is a CFA Charterholder and a member of the CFA Instituteand the CFA Society of the UK.

GREGORY HALTON, Senior Portfolio Manager Having graduated from St Catherine’s College, Oxford in 2000 with a MEng (Hons) in Engineering Science, Mr. Haltonworked in the global equity division of Deutsche Asset Management before joining Mondrian in 2004. Mr. Halton is asenior portfolio manager within the Emerging Markets Team. Mr. Halton is a CFA Charterholder and a member of theCFA Institute and the CFA Society of the UK.

BORIS VESELINOVICH, Senior Portfolio Manager Mr. Veselinovich is an Economics and Quantitative Finance graduate from the University of Western Australia andholds an MSc in Mathematical Trading and Finance from CASS Business School, London. He commenced his careeras an Investment Research Analyst at Challenger International in Australia covering the local equity market. He joinedMondrian in 2001 and has since worked on global equity coverage as well as new product development initiatives.Mr. Veselinovich has the IMC designation, the Securities and Investment Institute Certificate in Derivatives and is amember of the CFA Institute and CFA Society of the UK.

CLIVE GILLMORE, Chief Executive Officer and Group CIO Mr. Gillmore is a graduate of the University of Warwick in Management Science, and has completed the InvestmentManagement Program at the London Business School. In 1990, Mr. Gillmore joined Mondrian Investment Partners’predecessor organization as a founding member, having previously worked as a senior portfolio manager for HillSamuel Investment Advisers Ltd., and a portfolio manager at Legal and General Investment Management. He has overthirty years’ experience analyzing equity markets and securities around the world and has managed client portfolios witha wide range of mandates. Mr. Gillmore is CEO and Group CIO of Mondrian, he also chairs the Global Equitycommittee, the Equity Research Forum and he is a member of Mondrian’s Emerging Markets Equity StrategyCommittee.

DAN KELLY, Portfolio Manager Mr. Kelly graduated from the University of Leeds in 2004, with a BSc. (Hons) degree in Mathematics with Philosophy.He subsequently worked in the Financial Services department of Deloitte LLP for three years, where he qualified as aChartered Accountant. He joined the Mondrian Emerging Markets Equity Team in 2009. Mr. Kelly is a CFACharterholder and a member of the CFA Institute and the CFA Society of the UK.

SAMWYATT, Portfolio ManagerMr. Wyatt graduated from the University of Leeds, where he achieved a First Class Honours degree in Economics. Hesubsequently worked for four and a half years in the Corporate International Tax practice of Deloitte LLP, where hequalified as a Chartered Accountant, before joining Mondrian in 2013. Mr. Wyatt is a CFA Charterholder and is amember of the CFA Institute and the Institute of Chartered Accountants in England and Wales.

MICHAEL BRAY, Research AnalystMr. Bray is a graduate of the University of Nottingham where he achieved a BA(Hons) in Industrial Economics. Hestarted his career at Mondrian as an Investment Administrator in 2011, subsequently joining the Emerging MarketsEquity team as a Research Analyst. Mr. Bray is a candidate for level II of the CFA program.

EMERGINGMARKETS STRATEGY COMMITTEEJANUARY 2017

SEC

TIO

N5

5.13

1703

01 F

resn

oCoE

RS E

MEL

P


IMPORTANT INFORMATION

TERM/ISSUE DESCRIPTION/DISCLOSURE

Benchmark: All references to “Benchmark” or “EM” refer to the MSCI Emerging Markets Index Net return. All references to “EAFE” refer to the MSCI EAFE® Index (Europe, Australasia, Far East) Net return. These indices assume the reinvestment of dividendsafter the deduction of withholding tax and approximates the minimum possible dividend re-investment. One cannot invest in an index.Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any expressor implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and allsuch parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for aparticular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of itsaffiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct,indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of suchdamages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent. Onecannot invest in an index.

Confidentiality: This document is confidential and only for the use of the party named on its cover and their advisers. It may not beredistributed or reproduced, in whole or in part.

Current Views: Views expressed were current as of the date indicated, are subject to change, and may not reflect current views. Views should notbe considered a recommendation to buy, hold or sell any security and should not be relied on as research or investment advice.

Forecast “Real” Annualized Market Returns: These forecast “real” annualized market returns are used solely as a basis for making judgments about country allocationweightings and are not intended to be indications of expected returns.

Forward-Looking Statements: This document may include forward-looking statements. All statements other than statements of historical facts are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” “expect”).Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give noassurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differmaterially from those reflected in such forward-looking statements.

Fund Characteristics: Fund Turnover, Market Capitalization, Price to Book Value Ratio, Price to Cash Flow Ratio, Price to Earnings Ratio and DividendYield are each based on generally accepted industry standards. All Fund characteristics are derived by first calculating thecharacteristics for each security, and then calculating the weighted-average of these values for the Fund. The details of exactcalculations can be provided on request. All Fund characteristic data provided in this document is produced using Mondrian’s accounting system data and not official NetAsset Value data of the Fund.

Fund Guidelines: The Fund is managed in accordance with the investment objective and guidelines and other terms and conditions described inthe Confidential Information Memorandum of the Fund and the Limited Partnership Agreement of the Fund, as each may beamended or modified from time to time in accordance with their terms. The Fund is not managed in accordance with theindividual guidelines of any one investor.

Performance Results: Performance for the Mondrian Emerging Markets Equity Fund, L.P. is net of Transaction Expenses and Administrative Expensesbut gross of Contribution Charges, Withdrawal Charges and Management Fees (each as described in the ConfidentialInformation Memorandum). Contribution Charges and Withdrawal Charges are automatically deducted from subscriptionpayments and redemption proceeds. Management Fees are paid directly by the participants. Participant returns will be reducedby Contribution Charges, Withdrawal Charges and Management Fees paid. Performance shown for the Mondrian Emerging Markets Equity Composite or the Mondrian Focused Emerging Markets EquityComposite does not reflect the deduction of investment advisory and other fees and are net of transaction costs andwithholding tax. Investment returns will be reduced accordingly. For example, if a 1.00% advisory fee were deducted quarterly(0.25% each quarter) and your annual return was 10% (approximately 2.411% each quarter) before deduction of advisoryfees, the deduction of advisory fees would result in an annualized return of approximately 8.904%. Mondrian’s investmentadvisory fees are described in Part II of its Form ADV. A representative US dollar fee schedule for institutional accounts isprovided below, although it is expected that from time to time the fee charged will differ from the below schedule dependingon the country in which the client is located and the nature, circumstances and requirements of individual clients. The fees foran Emerging Markets account are as follows: the first US$50m at 1.10%; the next US$50m at 0.90%; the next US$100mat 0.75%; and amounts over US$200m at 0.60%; currently, new accounts are typically subject to a minimum account size of$100 million (or fees equivalent thereto); this product is currently closed to new investors. The fees for Focused EmergingMarkets account are as follows: the first US$50m at 0.85%; the next US$50m at 0.75%; and amounts over US$100m at0.65%; currently, new accounts are typically subject to a minimum account size of $100 million (or fees equivalent thereto).Past performance is not indicative of future results. An investment in the Fund involves the risk of loss. The investment returnand value of interests in the Fund will fluctuate. When a withdrawal is made, the interests may be worth more or less thanwhen originally purchased. There can be no assurance that the investment objectives of the Fund will be achieved.Unless otherwise noted, all returns are in US dollar.

Purchasing Power Parity Valuations: Using proprietary Mondrian models. Further information on these models can be provided on request.Universe Information: The information provided in the Standard Deviation chart is from InterSec Research Corp.US Consumer Price Index: Data provided through Datastream; two months in arrears.

SE

CT

ION

5

1703

01 F

resn

oCoE

RS E

MEL

P


5.14

MONDRIAN EQUITY PRODUCTSU.S. INVESTORS

DECEMBER 31, 2016

Closed is defined as the vehicle is no longer available to new investors. The vehicle remains open to existing clients for contributions.1. Utilizing separate account only

2. Utilizing commingled fund for emerging markets exposure

3. Utilizing commingled fund for both global equity and emerging markets exposure

4. Mondrian serves as sole sub-advisor to a range of registered mutual funds known as the Laudus Mondrian Funds. The Funds are advised by Charles Schwab Investment Management. For additional information on the Laudus Mondrian Funds, please contact your Mondrian client service representative or see www.laudusfunds.com

Mondrian may, from time to time, reduce and/or increase the minimum amounts listed above. The above is for information purposes only and intended solely for theperson to whom it has been delivered. It is not an offer or solicitation with respect to the purchase of any securities. Any investment decision in connection with anyinvestment vehicle should be based on the information contained in its written offering materials.

MONDRIAN PRODUCT ANDTYPICAL BENCHMARK

VEHICLE

SEPARATE ACCOUNT

LIMITED PARTNERSHIP

COLLECTIVE INVESTMENT TRUST

REGISTERED MUTUAL FUND

Non-US Equity • MSCI EAFE Closed

OpenMinimum: $5 million


OpenMondrian IEQ Fund: DPIEX

Minimum: $1 million

Non-US Equity ESG• MSCI EAFE


Focused Non-US Equity • MSCI EAFE

OpenMinimum:

$100 million

Laudus Mondrian4

Global Equity • MSCI World

OpenMinimum:

$100 million


All Countries World Equity • MSCI ACW

OpenMinimum:

$300 million1

$100 million2

OpenMinimum: $20 million3

All Countries World Ex-US Equity • MSCI ACW ex-US

ClosedOpen

Minimum: $5 million


Focused All Countries World Ex-US Equity • MSCI ACW ex-US

OpenMinimum:

$300 million1

$100 million2

Emerging Markets Equity • MSCI EM

Closed Closed

Focused Emerging Markets Equity • MSCI EM

Closed ClosedLaudus

Mondrian4

Emerging Markets Wealth • MSCI EM

OpenMinimum:

$100 million


Open

Non-US Small Cap Equity • MSCI World ex-US Small Cap

Closed Closed

Emerging Markets Small Cap Equity • MSCI EM Small Cap

OpenMinimum:

$150 million


SEC

TIO

N5

5.15

1703

01 F

resn

oCoE

RS E

MEL

P


MONDRIAN PRODUCT ANDTYPICAL BENCHMARK

VEHICLE

SEPARATE ACCOUNT

LIMITED PARTNERSHIP

COLLECTIVE INVESTMENT TRUST

REGISTERED MUTUAL FUND

Global Fixed Income • Citigroup WGBI • Bloomberg Barclays Global Aggregate Bond Index• JPMorgan Global Government Bond Index



International Fixed Income • Citigroup WGBI ex-USD• Bloomberg Barclays Global Aggregate ex-USD Bond Index• JPMorgan Global Government ex-USD Bond Index



Laudus Mondrian1

Global Inflation-Linked Bonds • Bloomberg Barclays World Government Inflation-LinkedBond Index



US Aggregate Fixed Income • Bloomberg Barclays US Aggregate Bond Index



Global Debt Opportunities • 80% JPMorgan GGBI/20% JPMorgan GBI-EM Glbl. Div.• 80% Citigroup WGBI/20% Custom Citigroup EM LocalCurrency Bond Index



Local Currency Emerging Markets Debt • JPMorgan GBI-EM Global Diversified



Hard Currency Emerging Markets Debt • JPMorgan EMBI Global Diversified


OpenMinimum:

US$5 million

Blended Currency Emerging Markets Debt • 50% JPMorgan EMBI Global Diversified/50% JPMorgan GBI-EM Global Diversified


OpenMinimum:

US$10 million

MONDRIAN FIXED INCOME PRODUCTSU.S. INVESTORS

DECEMBER 31, 2016

1. Mondrian serves as sole sub-advisor to a range of registered mutual funds known as the Laudus Mondrian Funds. The Funds are advised by Charles Schwab Investment Management. For additional information on the Laudus Mondrian Funds, please contact your Mondrian client service representative or see www.laudusfunds.com

Mondrian may, from time to time, reduce and/or increase the minimum amounts listed above. The above is for information purposes only and intended solely for theperson to whom it has been delivered. It is not an offer or solicitation with respect to the purchase of any securities. Any investment decision in connection with anyinvestment vehicle should be based on the information contained in its written offering materials.

SE

CT

ION

5

mondrian-emerging-markets-equity-fund-l-p - FOIALTS.com · james f. brecker iii, cfa senior vice...

Documents

Transcript of mondrian-emerging-markets-equity-fund-l-p - FOIALTS.com · james f. brecker iii, cfa senior vice...