Sands Capital Management, LLC Tax-Exempt Institutional Equity Composite (TEIEC) Annual Disclosure Presentation

Transcription

1 Sands Capital Management, LLC Tax-Exempt Institutional Equity Composite (TEIEC) Annual Disclosure Presentation Year End Number of Accounts Assets at End of Period USD Millions Net Return TEIEC Gross Return Annualized 3 Yr. Ex-Post Standard Deviation Russell 1000 Growth (R1000G) R1000G Annualized 3 Yr. Ex-Post Standard Deviation Percentage of Firmwide Assets Percentage in Bundled Fee Assets Asset Weighted Standard Deviation 1 Firm s Total Assets USD Millions $17, $47, $16, $42, $11, $27, $8, $18, $8, $16, $7, $13, $4, $8, $11, $20, $9, $19, $10, $19, $6, $11, $3, $5, $ $1, $ $1, $ $ $ n.m. $ $ n.m. $ $ n.m. $ $ n.m. $ $ n.m. $ $ n.m. $ $ n.m. $ $ n.m. $ n.m. Not statistically meaningful, five or less accounts in the composite for the entire year. 2 Annual performance results reflect partial period performance. The returns are calculated from 2/29/92 to 12/31/92 for both the composite and the index. 3 The 3 year annualized standard deviation is not shown due to having less than 36 months of returns. Period Ending Composite Performance Benchmark Performance (Russell 1000 Growth) Composite vs. Benchmark 6/30/15 Net Cumulative Net Annualized Gross Cumulative Gross Annualized Standard Deviation 4 Cumulative Annualized Standard Deviation 4 Beta 4 R-Squared 4 1 Year Years Years Years Years Since Inception 1, , This statistical analysis is based on monthly performance numbers. Sands Capital Management ( Sands Capital ) is an independent registered investment advisor. Sands Capital claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. Sands Capital has been independently verified for the periods February 7, 1992 through December 31, 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. The Tax Exempt Institutional Equity Composite ( TEIEC ) has been examined for the periods February 29, 1992 through December 31, The verification and performance examination reports are available upon request. The TEIEC contains all fee paying, tax exempt institutional equity accounts managed according to the Select Growth Equity Strategy on a fully discretionary basis and for comparison purposesismeasuredagainsttherussell1000 Growth Index ( R1000G ). The Select Growth Equity strategy (formerly Large Cap Growth ) is a concentrated portfolio that typically includes 25 to 30 companies. Portfolio investments are typically U.S. domiciled large capitalization, dominant leaders in their respective business spaces and usually operate on a global basis. The portfolio may invest in mid capitalization companies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. exchange. This composite holds securities that are not included in the R1000G, and Sands Capital Management may invest in securities not covered by the R1000G. Performance results in presentations prior to January 1, 2002 were measured against the S&P 500 Index. The benchmark was changed to be more representative of the composite strategy, however, information regarding the comparison to the S&P 500 is available upon request. Effective April 1, 1997, the minimum account size for this composite is $3 million. The minimum account size was $1 million from February 7, 1992 through March 31, Results are based on fully discretionary accounts under management. The annual composite dispersion presented is an asset weighted standard deviation calculated of performance dispersion for accounts in the composite for the entire year, using beginning of period values. Returns are presented gross and net of management fees and include the reinvestment of all income and cash balances. For periods prior to 2013, gross returns are shown as supplemental information and are stated gross of all fees and transaction costs for bundled fee accounts; net returns are reduced by all fees and transaction costs incurred. Bundled fee accounts pay a fee based on a percentage of assets under management. Other than brokerage commissions this fee may have included portfolio monitoring, consulting services, and in some cases, custodial services. As of January 1, 2013, bundled fee accounts are no longer included in the TEIEC. The U.S. Dollar is the currency used to express performance. Sands Capital s standard annual fee schedule is 0.75% on the first $50 million of assets under management and 0.50% on assets under management greater than $50 million. In addition to the management fee, some accounts may also pay an incentive fee. Additional information regarding the incentive fee is available upon request. The Select Growth Equity Strategy of the portfolio manager was created and fully invested February 7, The TEIEC was created on February 29, Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. A list of composite descriptions is available upon request. Past performance is not indicative of future results. Russell 1000 Growth Index is a trademark of the Frank Russell Company. SGDISC0815

2 Composite Descriptions Select Growth Tax-Exempt Institutional Equity Composite ( TEIEC ) The Tax-Exempt Institutional Equity Composite reflects all fee paying tax-exempt institutional Select Growth Equity Strategy ("Select Growth") accounts managed on a fully discretionary basis. The Select Growth Equity strategy (formerly Large Cap Growth ) is a concentrated portfolio that typically includes 25 to 30 companies. Portfolio investments are typically U.S. domiciled large-capitalization, dominant leaders in their respective business spaces and usually operate on a global basis. The portfolio may invest in mid-capitalization companies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. exchange. Effective April 1, 1997, the minimum account size for this composite is $3 million. The minimum account size was $1 million from February 7, 1992 through March 31, The Tax-Exempt Institutional Equity Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Tax-Exempt Institutional Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Tax-Exempt Institutional Equity Composite is the Russell 1000 Growth Index. Prior to January 1, 2002 the benchmark for the composite was the S&P 500 Index. The benchmark was changed to be more representative of the composite strategy. Information regarding the comparison to the S&P 500 is available upon request. The composite inception date is February 29, 1992; the creation date is February 7, Taxable Equity Composite The Taxable Equity Composite reflects information from all fee paying taxable Select Growth Equity Strategy ("Select Growth") accounts that are not U.S. based mutual funds managed on a fully discretionary basis. The Select Growth Equity strategy (formerly Large Cap Growth ) is a concentrated portfolio that typically includes 25 to 30 companies. Portfolio investments are typically U.S. domiciled large-capitalization, dominant leaders in their respective business spaces and usually operate on a global basis. The portfolio may invest in mid-capitalization companies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. exchange. The minimum account size for this composite is $2 million. The Taxable Equity Composite results are time weighted rates of return, with valuation on a daily basis. The daily returns are geometrically linked to obtain longer time periods. All Taxable Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Taxable Equity Composite is the Russell 1000 Growth Index. Prior to January 1, 2002 the benchmark for the composite was the S&P 500 Index. The benchmark was changed to be more representative of the composite strategy. Information regarding the comparison to the S&P 500 is available upon request. The composite inception date is February 29, 1992; the creation date is March 31, US-based mutual funds were included in this composite through December 31, Beginning January 1, 2004, US based mutual fund accounts are included in the U.S. Mutual Fund Composite.

3 Modified Equity Composite The Modified Equity Composite reflects information from all fee paying and non-fee paying Select Growth Equity Strategy ("Select Growth") accounts that may have variations from the Select Growth Equity ("Select Growth") strategy model due to client restrictions, tax implications or account size. The Select Growth Equity strategy (formerly Large Cap Growth ) is a concentrated portfolio that typically includes 25 to 30 companies. Portfolio investments are typically U.S. domiciled large-capitalization, dominant leaders in their respective business spaces and usually operate on a global basis. The portfolio may invest in mid-capitalization companies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. exchange. There is no account minimum. The Modified Equity Composite results are time weighted rates of return, with valuation on a daily basis. The daily returns are geometrically linked to obtain longer time periods. All Modified Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Modified Equity Composite is the Russell 1000 Growth Index. Prior to January 1, 2002 the benchmark for the composite was the S&P 500 Index. The benchmark was changed to be more representative of the composite strategy. Information regarding the comparison to the S&P 500 is available upon request. Prior to 1997, terminated accounts were not included in this composite and prior to February 6, 2009 the Modified Equity Composite was named the Other Equity Composite. The composite inception date is February 29, 1992; the creation date is March 31, U.S Act Mutual Fund Composite The U.S Act Mutual Fund Composite reflects information from all fee paying U.S Act Mutual Fund Select Growth Equity Strategy ("Select Growth") accounts managed on a fully discretionary basis. The Select Growth Equity strategy (formerly Large Cap Growth ) is a concentrated portfolio that typically includes 25 to 30 companies. Portfolio investments are typically U.S. domiciled large-capitalization, dominant leaders in their respective business spaces and usually operate on a global basis. The portfolio may invest in mid-capitalization companies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. exchange. There is no account minimum. The U.S Act Mutual Fund Composite results are time weighted rates of return, with valuation on a daily basis. The daily returns are geometrically linked to obtain longer time periods. All U.S Act Mutual Fund Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the U.S Act Mutual Fund Composite is the Russell 1000 Growth Index. The composite inception date is June 30, 2000; the creation date is January 1, 2004.

4 Bundled Fee Composite The Bundled Fee Composite reflects information from all fee paying Select Growth Equity Strategy ("Select Growth") accounts that have "bundled fee" arrangements with third parties that may include and combine fees such as brokerage commissions, portfolio monitoring, consulting services, and in some cases, custodial services. The Select Growth Equity strategy (formerly Large Cap Growth ) is a concentrated portfolio that typically includes 25 to 30 companies. Portfolio investments are typically U.S. domiciled large-capitalization, dominant leaders in their respective business spaces and usually operate on a global basis. The portfolio may invest in mid-capitalization companies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. exchange. There is no account minimum. The pure gross results of the Bundled Fee Composite are time weighted rates of return, with valuation on a daily basis. The pure gross performance presented is that of the asset-weighted composite, calculated using daily market values. The pure gross daily returns are geometrically linked to obtain longer time periods. The net of fee Bundled Fee Composite results are time-weighted rates of return, with valuation on a monthly basis. The net of fee monthly returns are geometrically linked to obtain longer time periods. All Bundled Fee Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Bundled Fee Composite is the Russell 1000 Growth Index. The composite inception date is December 31, 2012; composite creation date is October 3, 2013.

5 Global Growth Global Growth Equity Composite ( GGEC ) The Global Growth Equity Composite reflects information from all fee paying and non-fee paying accounts managed in the Global Growth Equity Strategy on a fully discretionary basis. The Global Growth Equity strategy is a concentrated global portfolio that typically includes 30 to 50 companies that are domiciled around the world. Portfolio investments are typically large-capitalization, dominant leaders in their respective business spaces. The portfolio may invest in mid-capitalization companies. The portfolio may invest a significant percentage of its assets in U.S. companies, ADRs, and foreign securities traded on foreign exchanges, and may include the use of derivative access products to gain exposure to certain foreign markets where direct investment is not always practical or cost efficient. There is no account minimum. The Global Growth Equity Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Global Growth Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Global Growth Equity Composite is the MSCI All Country World Index. The composite inception date is December 31, 2008; the creation date is February 26, Modified Global Growth Equity Composite The Modified Global Growth Equity Composite reflects information from all fee paying Global Growth Equity Strategy accounts that may have variations from the Global Growth Equity strategy model due to client restrictions or tax implications. The Global Growth Equity strategy is a concentrated global portfolio that typically includes 30 to 50 companies that are domiciled around the world. Portfolio investments are typically large-capitalization, dominant leaders in their respective business spaces. The portfolio may invest in mid-capitalization companies. The portfolio may invest a significant percentage of its assets in U.S. companies, ADRs, and foreign securities traded on foreign exchanges, and may include the use of derivative access products to gain exposure to certain foreign markets where direct investment is not always practical or cost efficient. There is no account minimum. The Modified Global Growth Equity Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Modified Global Growth Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Modified Global Growth Equity Composite is the MSCI All Country World Index. The composite inception date is November 2, 2009; the creation date is March 23, 2010.

6 Emerging Markets Growth Emerging Markets Growth Composite The Emerging Markets Growth Composite reflects information from all fee paying and non fee paying accounts managed in the Emerging Markets Growth Strategy on a fully discretionary basis. The Emerging Markets Growth strategy is a concentrated portfolio that typically includes 30 to 50 companies that are domiciled, listed, or that derive over half their revenues or profits from countries classified as MSCI Emerging and Frontier Market countries. Portfolio companies can be small, mid, or large capitalization companies that have attractive growth opportunities ahead of them and are dominant leaders in their respective business spaces. The portfolio may invest in developed market businesses that derive a substantial portion of their revenues from emerging markets. The portfolio may invest in ADRs, foreign securities traded on foreign exchanges, and may include the use of derivative access products to gain exposure to certain foreign markets where direct investment is not always practical or cost efficient. There is no account minimum. The Emerging Markets Growth Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Emerging Markets Growth Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Emerging Markets Growth Composite is the MSCI Emerging Markets Index. The composite inception date is December 31, 2012; the creation date is May 28, Modified Emerging Markets Growth Composite The Modified Emerging Markets Growth Equity Composite reflects information from all fee paying Emerging Markets Growth Equity Strategy accounts that may have variations from the Emerging Markets Growth Equity strategy model due to client restrictions or tax implications. The Emerging Markets Growth strategy is a concentrated portfolio that typically includes 30 to 50 companies that are domiciled, listed, or that derive over half their revenues or profits from countries classified as MSCI Emerging and Frontier Market countries. Portfolio companies can be small, mid, or large capitalization companies that have attractive growth opportunities ahead of them and are dominant leaders in their respective business spaces. The portfolio may invest in developed market businesses that derive a substantial portion of their revenues from emerging markets. The portfolio may invest in ADRs, foreign securities traded on foreign exchanges, and may include the use of derivative access products to gain exposure to certain foreign markets where direct investment is not always practical or cost efficient. There is no account minimum. The Modified Emerging Markets Growth Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Modified Emerging Markets Growth Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Modified Emerging Markets Growth Composite is the MSCI Emerging Markets Index. The composite inception date is December 31, 2013; the creation date is July 14, 2014.

7 Technology Innovators Technology Innovators Composite ( TIC ) The Technology Innovators Composite reflects information from all fee-paying and non-fee paying accounts managed in the Technology Innovators Strategy on a fully discretionary basis. The Technology Innovators strategy is a concentrated portfolio of leading growth businesses across the technology sector, typically including 20 to 35 companies. Additionally, it is an all-capitalization portfolio that may invest a significant percentage of its assets in foreign securities, whether traded on a U.S. or foreign exchange. There is no account minimum. The Technology Innovators Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Technology Innovators Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Technology Innovators Composite is the MSCI ACWI Information Technology Index. Performance results in presentations prior to April 30, 2012 were measured against the S&P Composite 1500 Information Technology Index. The benchmark was changed to be more representative of the composite strategy; however, information regarding the comparison to the S&P Composite 1500 Information Technology Index is available upon request. The composite inception date is December 31, 2010; the creation date is January 6, Modified Technology Innovators Composite The Modified Technology Innovators Composite reflects information from all fee-paying and non-fee paying accounts managed in the Technology Innovators Strategy that may have variations from the Technology Innovators strategy model due to client restrictions or tax implications. The Technology Innovators strategy is a concentrated portfolio of leading growth businesses across the technology sector, typically including 20 to 35 companies. Additionally, it is an all-capitalization portfolio that may invest a significant percentage of its assets in foreign securities, whether traded on a U.S. or foreign exchange. There is no account minimum. The Modified Technology Innovators Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Modified Technology Innovators Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Modified Technology Innovators Composite is the MSCI ACWI Information Technology Index. The composite inception date is March 31, 2012; the creation date is April 1, 2012.

8 Focus 5 Institutional Focus 5 Equity Composite The Institutional Focus 5 Equity Composite reflects information from all fee paying and non-fee paying institutional Focus 5 Equity Strategy accounts managed on a fully discretionary basis. The Focus 5 strategy is a concentrated, all-capitalization portfolio, typically including 5 to 7 companies. Portfolio companies are selected from Sands Capital s other equity strategies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. or foreign exchange. There is no account minimum. The Institutional Focus 5 Equity Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the assetweighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Institutional Focus 5 Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Institutional Focus 5 Equity Composite is the Russell 1000 Growth Index. Prior to May 5, 2010 the Institutional Focus 5 Equity Composite was named the Institutional Focused Equity Composite. The composite inception date is April 2, 2008; the creation date is February 2, Focus 15 Institutional Focus 15 Equity Composite The Institutional Focus 15 Equity Composite reflects information from all fee paying and non-fee paying institutional Focus 15 Equity Strategy accounts managed on a fully discretionary basis. Our Focus 15 strategy is a concentrated, all-capitalization portfolio, typically including 10 to 15 companies. Portfolio companies are selected from Sands Capital s other equity strategies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. or foreign exchange. There is no account minimum. The Institutional Focus 15 Equity Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Institutional Focus 15 Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Institutional Focus 15 Equity Composite is the Russell 1000 Growth Index. Prior to May 5, 2010 the Institutional Focus 15 Equity Composite was named the Institutional Select Equity Composite. The composite inception date is April 2, 2008; the creation date is February 2, 2010.

9 Closed Composites Focused Equity Composite The Focused Equity Composite reflects information from all fee paying equity accounts managed on a fully discretionary basis that hold less than 15 securities. There is no account minimum. The Focused Equity Composite results are time weighted rates of return, with valuation on a daily basis. The daily returns are geometrically linked to obtain longer time periods. All Focused Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Focused Equity Composite is the Russell 1000 Growth Index. The composite inception date is April 2, 2008; the creation date is June 30, Other Balanced Composite The Other Balanced Composite reflects information from all fee paying balanced accounts managed on a fully discretionary basis. There is no account minimum. The Other Balanced Composite results are time weighted rates of return, with valuation on a daily basis. The daily returns are geometrically linked to obtain longer time periods. All Other Balanced Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Other Balanced Composite is the Russell 1000 Growth Index. Prior to January 1, 2002 the benchmark for the composite was the S&P 500 Index. The benchmark was changed to be more representative of the composite strategy. Information regarding the comparison to the S&P 500 is available upon request. The composite inception date is February 7, 1992; the creation date is March 31, Prior to 1997, terminated accounts were not included in this composite. Life Science Innovators Equity Composite ( LSIEC ) The Life Science Innovators Equity Composite reflects information from all fee paying accounts managed in the Life Science Innovators Equity Strategy on a fully discretionary basis with equity investments made primarily in health care securities. There is no account minimum. The Life Science Innovators Equity Composite results are time weighted rates of return, with valuation on a daily basis. The daily returns are geometrically linked to obtain longer time periods. All Life Science Innovators Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Life Science Innovators Equity Composite is the S&P Composite 1500 Health Care Index. Prior to May 5, 2010 the Life Science Innovators Equity Composite was named the Healthcare Leaders Equity Composite. The composite inception date is January 31, 2007; the creation date is March 31, 2007.

10 Life Science Innovators Fee and Non-Fee Paying Equity Composite The Life Science Innovators Fee and Non-Fee Paying Equity Composite reflects information from all fee paying and non-fee paying accounts managed in the Life Science Innovators Equity Strategy on a fully discretionary basis with equity investments made primarily in health care securities. There is no account minimum. The Life Science Innovators Fee and Non-Fee Paying Equity Composite results are time weighted rates of return, with valuation on a daily basis. The daily returns are geometrically linked to obtain longer time periods. All Life Science Innovators Fee and Non-Fee Paying Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Life Science Innovators Fee and Non-Fee Paying Equity Composite is the S&P Composite 1500 Health Care Index. Prior to May 5, 2010 the Life Science Innovators Fee and Non-Fee Paying Equity Composite was named the Healthcare Leaders Fee and Non-Fee Paying Equity Composite. The composite inception date is January 31, 2007; the creation date is March 31, Program Account Composite The Program Account Composite reflects information from all fee paying Select Growth Equity Strategy ("Select Growth") accounts managed on a fully discretionary basis that are involved in program (wrap) accounts, regardless of sponsor. The Select Growth Equity strategy (formerly Large Cap Growth ) is a concentrated portfolio that typically includes 25 to 30 companies. Portfolio investments are typically U.S. domiciled large-capitalization, dominant leaders in their respective business spaces and usually operate on a global basis. The portfolio may invest in mid-capitalization companies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. exchange. There is no account minimum. The Program Account Composite results are time-weighted rates of return, with valuation on a monthly basis. The monthly returns are geometrically linked to obtain the quarterly values. All Program Account Composite results include the reinvestment of income. All returns include cash and cash equivalents. All performance results are expressed in U.S. dollars. The benchmark for the Program Account Composite is the Russell 1000 Growth Index. The composite inception date is July 17, 2002 and creation date is October 1, Non-Institutional Focus 15 Equity Composite The Non-Institutional Focus 15 Equity Composite reflects information from all fee paying non-institutional Focus 15 Equity Strategy accounts managed on a fully discretionary basis. Our Focus 15 strategy is a concentrated, all-capitalization portfolio, typically including 10 to 15 companies. Portfolio companies are selected from Sands Capital s other equity strategies. While primarily constructed of domestic companies, the portfolio may contain foreign securities that trade on a U.S. or foreign exchange. There is no account minimum. The Non-Institutional Focus 15 Equity Composite results are time weighted rates of return, with valuation on a daily basis. The performance presented is that of the asset-weighted composite, calculated using daily market values. The daily returns are geometrically linked to obtain longer time periods. All Non-Institutional Focus 15 Equity Composite results include the reinvestment of all income. All returns include cash and cash equivalents. All performance results are expressed in U.S. Dollars. The benchmark for the Non-Institutional Focus 15 Equity Composite is the Russell 1000

11 Growth Index. Prior to May 5, 2010 the Non-Institutional Focus 15 Equity Composite was named the Non-Institutional Select Equity Composite. The composite inception date is July 1, 2009; the creation date is February 2, 2010.