Exhibit 11: Pillars of the Investment Strategy Group’s Investment Philosophy = INVESTMENT STRATEGY GROUP — =z = ——— r —=" History is a Appropriate Value Appropriate , Useful Guide Diversification Orientation Horizon Be sistency ANALYTICAL RIGOR ASSET ALLOCATION PROCESS IS CLIENT-TAILORED AND INDEPENDENT OF IMPLEMENTATION VEHICLES series, movies}. Combined with some smaller As many of our clients know, one of the pillars improvements, these changes added $560 billion to of our investment philosophy is that history the level of 2012 GDP, a 3.6% increase relative to _is a useful guide (see Exhibit 11). And history the prior estimate.” tells us that labor productivity has moved in The more immediate—and important— cycles, with periods of low productivity growth question is whether we have entered a new phase followed by periods of high productivity growth. in productivity growth trends that will keep In a forthcoming and comprehensive paper productivity growth at the low levels seen since titled “Seven Reasons to Be Optimistic About 2004. We believe that the answer is unknowable Productivity,” Professors Lee Branstetter of with any degree of certainty; historically, Carnegie Mellon University and Daniel Sichel productivity forecasts have been notoriously of Wellesley College show that periods of low wrong. In The Age of Diminished Expectations,” productivity growth have been followed by periods first published in 1990, Paul Krugman, Nobel of high productivity growth since 1889, as seen laureate in economics and professor at City in Exhibit 12. There is no reason to believe that University of New York, wrote that the lower pace “this time is different”; as many of you also know, of productivity growth experienced since the early we believe that those words are among the most 1970s would most likely persist in the future. In dangerous and misused words in our industry. 1995, however, productivity growth rates increased Olivier Blanchard, senior fellow at the Peterson an