Your SlideShare is downloading. ×
William blair
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

William blair

1,100
views

Published on

Published in: Business, Economy & Finance

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,100
On Slideshare
0
From Embeds
0
Number of Embeds
8
Actions
Shares
0
Downloads
25
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Citywire Montreux 2012William Blair Global GrowthKenneth J. McAtamney, Partner Thomas Ross, Partner Reto B. Baruffol, PartnerPortfolio Manager Head of European Distribution European Institutional +44 20 7297 4706 Business Development tross@williamblair.com +41 44 287 90 20 rbaruffol@williamblair.comMay 2012 1 40807
  • 2. Firm Overview: Built for Client Success • Founded in 1935 • Investment roots in high quality growth companies across all global markets • 100% active employee owned • Diversified, merit-based ownership structure 2 234015
  • 3. Overview – Asset Management Capabilities Total Assets $46.9 billionWilliam Blair & Company has beenactive in investment management Global/ International Equityfor institutional and individual $27.1 billionclients since its founding. Custom Institutional AssetA number of clients who invested Portfolios Management $41.3 billion $4.8 billionwith us in our early years remainwith us decades later. Our asset US Growth Equity $11.0 billionbase has grown substantially inrecent years. US Fixed Income $2.8 billion US Value Equity $831 million Hedge Fund of Funds $322 million Dynamic Allocation $54 millionAs of March 31, 2012 3 232281
  • 4. William Blair Growth StrategiesWilliam Blair Global Growth Strategy: U.S. Growth Non-U.S. Growth Emerging Markets Global• Unconstrained: active, alpha-seeking strategy invested in William Blair’s International Emerging Leaders Focused Large Cap Growth Global Growth highest conviction ideas $960 million Leaders Growth $1.5 billion Leaders $2.5 billion $192 million• High Quality: our highest conviction ideas emphasize companies with the International Emerging Markets All Cap Growth Growth strongest corporate performance that we All Cap $2.4 billion Growth (Closed 6/11) believe will be the long-term category $13.3 billion $4.7 billion winners Small, U.S. Small, SMID, International Small Emerging Markets and Mid Cap Cap Growth• Comprehensive: global research Small-Mid, Small Cap Growth Growth (Closed 3/11) breadth, including companies of all sizes and Mid Cap $7.4 billion1 $2.6 billion $6 million in all markets International• Systematic: companies are analyzed Developed+ Developed Plus systematically – both objectively and $2.2 billion subjectively – in a global peer context International Expanded Multi Alpha• Uncompromising: no compromises with Opportunities Systematic Research $41 million regard to either quality of company or $18 million share valuation; balancing operational, valuation and concentration riskAssets as of March 31, 2012. International Developed Plus includes ADR strategy assets.1Small Cap Growth, $1.2 billion; SMID Growth, $3.0 billion; Mid Cap Growth, $3.2 billion 4 232563
  • 5. Global Growth Investment Team Portfolio Management Policy/Process and Communication Ken McAtamney W. George Greig Stephanie G. Braming, CFA Blake Pontius, CFA Partner Partner Partner BA, Michigan State BS, MIT BA, DePauw BA, Michigan State MBA, Indiana MBA, Wharton School MBA, University of Chicago MBA, DePaul 7 years/William Blair 15 years/William Blair 7 years/William Blair 6 years/William Blair 22 years/industry 32 years/industry 20 years/industry 14 years/industry Fundamental Research Team Sector Research Strategy Research Information Systematic Research Consumer Financials Healthcare Industrials Resources TechnologyW. George Greig, Jack Murphy, CFA Joel Gomberg, CFA Christina O’Hara, PhD RJ Bukovac, CFA William Benton, CFA Ward Sexton, CFA Spiro VoulgarisPartner Partner Partner Partner Partner Partner Partner Steve EnglehardtMelissa McGrane, CFA Rita Spitz, CFA Mark Lane Kurt Wiese, CFA, CPA Casey Preyss, CFA Andy Flynn, CFA James Golan, CFA Partner Partner Partner Partner Partner Partner Andrew Kominik, CFAOlga Pomerantz Alaina Anderson, CFA D.J. Neiman, CFA Thomas Sternberg, CFA Jim Jones, CFA James Golan, CFA Taylor Cope Partner Partner Travis Cope Charles Coustan Colin Williams, CFA Partner Yan Krasov, CFA Simon Fennell Implementation/Trading Fx and Portfolio Asia/Pacific Europe Americas Trade Order Management ImplementationNicola Hynds Terry O’Bryan, Partner Daniel Iannessa Kristin Gaffud Tim RandickPatrick Norwood Patrick NorwoodAs of April 2012. Research professionals shown in bold are sector team leaders. 5 232566
  • 6. Investment Philosophy: High Quality and SustainableGrowth• We believe that strong corporate performance is the foundation of superior long-term investment returns• The essence of corporate success lies in building intrinsic strengths in the management of human capital, financial resources, and stakeholder relationships, and delivering quality, innovation, service, and value to customers• Companies that lead in these critical areas have produced better returns on capital, over a longer time horizon, with greater consistency and less risk Global Universe by Quality Quintiles Global Quality Universe Up/Down Market Performance 15 80 Quintile 1 5 1 2 4 60 3 10 Quintile 2 Quintile 3 40 Universe Returns (%) 20 Returns Quintile 4 5 0 0 -20 Quintile 5 Quintiles -40 Universe 1 2 3 4 -5 -60 5 0 5 10 15 20 25 30 35 Up Market Returns Down Market Returns Standard DeviationJuly 31, 1997 - March 31, 2012. Data source: William Blair Global Universe. Quality is defined as those companies with good balance sheet metrics, efficiency, and higher returns. Up/downmarket returns based on ACWI ex-US IMI Index, monthly annualized returns. 6 234016
  • 7. Investment Process: Integrated and Inclusive Portfolio Research ManagementIntegrated Quality/ Sustainable Eligibility List DesignEach element of the process is Long Term: Growth 1,800 – 2,500directed toward portfoliocharacteristics and performanceobjectives Short- Operating Strategy Intermediate Performance/ Term: Valuation/Risk Research AgendaInclusive 60-100Members of the investment teamwork in concert toward researchconclusions and portfolio decisions Stock Selection Decision Tactics/ Review Implementation Portfolio Review Risk Analytics 7 232567
  • 8. Defining the Universe: Eligibility ListDiverse Research Universe GlobalFlexible universe of portfolio candidates diversified Turnover Eligibility Listacross sectors, countries, and size 2008 1,690 45.0%Represents 20-25% of investable universe with strongquality and sustainable growth characteristics 2009 1,501 32.2%Sourced from all investment team resources 2010 2,054 25.1%Each analyst covers, on average, approximately 100 2011 2,337 37.7%securities Eligibility List Number of Companies900 Global Eligibility List800700 Characteristics (%) Elig. List Benchmark600 Strong Op Margin 18.6 19.7500400 Strong Cash Flow ROIC 22.5 20.6300200 Higher 5-Year ROE 19.8 16.3100 0 Consistently High Reinvestment Rate 13.8 13.4 12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/30/2005 12/29/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 6/28/2002 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/29/2007 6/30/2008 6/30/2009 6/30/2010 6/30/2011 Superior 6-year Historical Trend Growth 13.7 10.1 Low Debt/Capital 27.3 37.7 Developed ex-US United States Emerging MarketsAs of December 31, 2011. Data source: William Blair Eligibility list and ACWI IMI Index. Calculated in FactSet. 8 232568
  • 9. Stock Selection: Decision Process Qualitative Criteria Systematic Factor Analysis Quality Management/business model Consistency, high returns on assets• Presentation and review of and capital, financial strength: new recommendations from Competitive positioning absolute and industry relative research agenda Governance/transparency• Focus issues Growth• Long-term fundamental performance prospects and Growth drivers/outlook Current, historical, prospective risks Valuation• Expectations variables – Relative & absolute valuation Historical and current earnings trends, stock Operating Performance performance, valuation Peer analysis Current fundamental performance• Baseline analysis of how company scores on internal Current fundamental performance quantitative metrics Strategic Considerations• 3 Rs – risk, reward, relevance Thematic issues/risks Aggregated sector, industry, regional data Macroeconomic data 9 232303
  • 10. Global Portfolio Construction: Comprehensive & Systematic• We believe that the optimal framework for evaluating the sustainable growth prospects of We seek to hold companies that are: companies is to globally assess the market opportunity, competitive landscape and value chain dynamics. World• This approach yields the highest Leaders quality companies with strong management teams and durable growth prospects, whether they Locally Tomorrow’s are multinational companies or Dominant Winners are regional or local champions.• We believe that by evaluating companies within this framework, we can identify the best companies in the world, regardless of size, sector or region. 10 232574
  • 11. Portfolio Design: Global Growth Structure Guidelines Benchmark: Geographic Exposure Sector Exposure Capitalization MSCI AC World IMI Region Range Sector Range Market Cap Range Pacific ex-Japan 0-20% Discretionary 0-30% Large Cap 20-60% Position Size: Japan 0-20% Staples 0-20% Mid Cap 20-60% Dependent on market cap, float, trading Europe + ME ex-UK 0-30% Energy 0-20% Small Cap 0-30% volume, price volatility, and United Kingdom 0-30% Financials 0-35% fundamental risk/reward W. Hemisphere 25-70% Healthcare 0-30% Emerging Asia 0-15% Industrials 0-30% Range: EMEA 0-10% IT 0-30% 0.25 – 5.00% at initial purchase Latin America 0-15% Materials 0-20% Telecom Svcs. 0-15% Number of holdings: Note: Total Utilities 0-15% 60-100 Emerging Markets 0-25% 3.50 3.00 2.50 2.00Position 1.50Size (%) 1.00 0.50 -- $100 mm $1,000 mm $10,000 mm $100,000 mm $1,000,000 mm Market Cap (Logarithmic Scale) As of March 31, 2012. Policy ranges subject to change at any time. 11 232575
  • 12. Global Growth Portfolio Characteristics March 31, 2012 MSCI AC World Strategy IMI Index Growth 3 Yr. EPS Growth Estimates 14.7% 16.1%Our holdings have historicallyexhibited superior profitability EPS (5-year historic) 16.8% 9.4%and growth, better balance sheet Returnsstructure, and reasonable Return on Equity 25.8% 16.4%valuation rates. Reinvestment Rate 24.2% 13.4% Valuation P/E (12-month projected) 13.7x 11.9x P/E (trailing 12 months) 16.5x 15.1x Float-adjusted Capitalization ($B) Weighted average market cap 63.7 58.5 Weighted median market cap 26.4 22.1The strategy data shown above is taken from a representative account. The index is comparable to the strategy in terms of investment approach but contains significantly more securities.Calculated in FactSet. 12 173720
  • 13. Global GrowthPerformance for Periods Ending March 31, 2012 Since Inception Performance (% in $US) 1Q 12 1 Year 3 Years (6/30/07) Global Growth Composite 15.67 9.16 27.10 3.07 MSCI AC World IMI 12.14 -1.18 21.64 -1.35 MSCI AC World 12.02 -0.19 21.36 -1.14 6/30/07 – Calendar Year Performance (% in $US) 2011 2010 2009 2008 12/31/07 Global Growth Composite -2.47 22.11 43.10 -49.50 16.00 MSCI AC World IMI -7.89 14.35 36.41 -42.34 0.90 MSCI AC World -6.86 13.21 35.41 -41.85 1.81March 2012 performance is preliminary.Investment performance assumes reinvestment of dividends and capital gains and is gross of investment management fees and net of transaction costs. Performance results will be reduced by thefees incurred in the management of the account. For example, on an account with a 1% fee, and gross performance of 20% over one year, the annual total return on a net of fee basis will result inperformance of 18.85%. A $1,000,000 initial investment would grow to approximately $1,440,000 gross of fees, versus $1,412,532 net of fees, over a two year period, assuming an annual return of20%. Investment management fees are described in William Blair & Company’s Form ADV Part 2A. Past performance is not indicative of future returns. Returns for periods greater than one yearare annualized. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. The benchmark that best reflects thecomposite’s investment strategy is the MSCI AC World Investable Market Index (IMI) Net, which is a free float-adjusted market capitalization index that is designed to measure equity marketperformance in the global developed and emerging markets. On June 30, 2008, the benchmark was changed from the MSCI AC World Index (Gross) to the current benchmark. The new benchmarkis more representative of the entire opportunity set for the investment strategy. The benchmark was also changed from a gross index series to a net index series to better reflect the passive returnthat could be earned by William Blair’s clients. Composite consists of considerably fewer securities. Please see composite disclosure in appendix for a complete description of the composite. 13 169761
  • 14. Global Growth Performance: Unconstrained & AlphaSeeking• William Blair’s Quality Growth Annualized Returns Since Inception strategies have demonstrated long- Since Inception of the William Blair Global Growth Composite term success in the US and 6/30/07 – 3/31/12 internationally versus the broad market. • When combined using the 4% 3.07% US/non-US weightings of the MSCI AC World Index, the 2% resulting pro-forma global 0.67% portfolio outperformed. 0% -1.35%• This can be translated into a -2% William Blair William Blair MSCI AC cohesive global strategy, which too Global Growth Global World IMI is designed to add value across Composite Pro-Forma Index sectors and regions over time.March 2012 performance is preliminary.Investment performance assumes reinvestment of dividends and capital gains and is gross of investment management fees and net of transaction costs. Investment management fees aredescribed in William Blair & Company’s Form ADV Part 2A. Past performance is not indicative of future returns. Returns for periods greater than one year are annualized. This page issupplemental to the full performance report for the three composites shown above. The benchmark that best reflects the US All Cap Growth composite’s investment strategy is the Russell 3000Growth Index. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. The benchmark that best reflects theInternational Growth composite’s investment strategy is the MSCI AC World ex-US Investable Market Index (IMI) Net. The benchmark that best reflects the Global Growth composite’s investmentstrategy is the MSCI AC World Investable Market Index (IMI) Net. Composites consist of considerably fewer securities than their representative benchmarks. Please see full disclosure statementsin the appendix for additional information on these composites and their respective benchmarks. 14 234017
  • 15. Global Growth PerformanceAnnualized Attribution by Sector, Region, and Market Capitalization (%) Three Years Since Inception Ending 12/31/11 6/30/07 - 12/31/11 MSCI AC MSCI AC Three Years Since Inception Global Global World IMI World IMI Ending 12/31/11 6/30/07 - 12/31/11 Growth Growth Region Index Index MSCI AC MSCI AC Global Global World IMI World IMI United States 17.1 14.4 0.5 -1.8 Growth GrowthSector Index Index Developed ex-US 19.0 9.5 -3.1 -6.6 Emerging Markets 32.2 20.7 3.9 -1.0Discretionary 30.5 20.4 -4.1 -2.5Staples 33.5 15.5 14.7 5.3 Total Selection Effect 7.1 2.4Energy 21.9 14.0 0.9 -0.8 Total Allocation Effect 3.0 1.6Financials 12.7 6.2 -13.5 -13.6Healthcare 13.8 10.9 5.1 1.3Industrials 17.2 13.4 -3.9 -4.7 Three Years Since InceptionIT 17.9 19.4 -1.0 -0.9 Ending 12/31/11 6/30/07 - 12/31/11Materials 17.2 18.8 1.2 -2.7 MSCI AC MSCI AC Global GlobalTelecom Svcs. 24.5 9.2 1.6 -1.7 World IMI World IMI Growth GrowthUtilities 5.4 2.9 -10.3 -3.7 Market Cap Index Index Large Cap 14.9 9.7 -2.3 -4.7Total Selection Effect 8.0 2.4 Mid Cap 22.6 15.0 -0.5 -4.1Total Allocation Effect 2.0 1.7 Small Cap 33.8 18.0 6.4 -3.0 Total Selection Effect 8.4 3.9 Total Allocation Effect 1.6 -0.1Percentage returns shown above are annualized. Allocation and interaction effects are combined. Sectors based on Global Industry Classification (GICS) Sectors. Market cap is defined as: Large>$15 billion, Mid $3 billion to $15 billion, and Small <$3 billion. Calculated in FactSet.Calculated in FactSet. Past performance is not indicative of future returns. Attribution by sector and region are based on estimated USD returns of equities held within the sectors and regionslisted. All stocks held during a measurement period, including purchases and sales, are included. Cash is not allocated among sectors and regions. Calculations are for attribution analysis onlyand are not intended to represent simulated performance history. The actual returns may be higher or lower. The benchmark that best reflects the composite’s investment strategy is the MSCI ACWorld Investable Market Index (IMI) Net, which is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emergingmarkets. FactSet attribution is based on a daily buy/hold basis and does not reflect timing or price of actual transactions. 15 233310
  • 16. William Blair Risk Management: An Integrated ApproachThroughout the firm and in our investment process, we employ a holistic view of risk management Our Holistic View ImplementationWilliam Blair’s firm ownership Firm Risk Operational Risk Investment Risk Riskstructure and culture promote an Independent Governance/ Company risk Tradingatmosphere of risk awareness – since founding in risk committeecontributing to continuous, durable 1935 Systematic Investmentfirm performance for over 77 years. Technology/ guidelines Private systems Portfolio partnership, construction:We view risk management as 100% employee Business • Sector/industryintegrated into the investment owned. No continuity • Macroeconomicprocess. While we seek to mitigate all external capital. • Country • Currencyforms of risk, the strongest risk • Politicalmanagement tool we use is ourinvestment in high quality companies. Portfolio management professionals 16 233192
  • 17. William Blair Investment ManagementOrganizational Culture: Focused Private Partnership • Stability and consistency: 77 years of independence • Well-defined, consistent and proven investment philosophy across all strategies • Collegiality and professionalism. Experienced, tenured and stable investment team • Aligned with clientsInvestment Process: Fundamental Analysis complemented with Systematic Analytics • Inclusive, integrated, collaborative and transparent • Global analysis of all companies and sectors • Comprehensive and exhaustive • Sophisticated proprietary objective measures of corporate performance and stock attributesStable Organization with Focused Investment Philosophy Enables Evolution • WB is a dynamic, learning, evolving, adapting organization • While underlying philosophy does not change, our processes are continuously evaluated, tested, refined and updated • Ensures our investment approach and organization remain relevant 17 234019
  • 18. Appendix Goonellabah, NSW, Australia 18 232438
  • 19. Holdings: Global Growth March 31, 2012 Portfolio Portfolio Country Weight Country Weight Consumer Discretionary 19.3 Healthcare 9.7 BMW AG Germany 0.7 Abcam PLC United Kingdom 0.4 Burberry Group PLC United Kingdom 0.5 Align Technology Inc. United States 0.5 Compass Group PLC United Kingdom 1.4 Coloplast A/S Denmark 0.5 Discovery Communications Inc. Series A United States 1.3 DaVita Inc. United States 1.2 Hyundai Motor Co. Ltd. Korea 1.9 Essilor International S.A. France 1.1 Nike Inc. Cl B United States 1.4 Express Scripts Holding Co United States 1.3 OReilly Automotive Inc. United States 1.3 IDEXX Laboratories Inc. United States 1.0 Pearson PLC United Kingdom 1.2 Novo Nordisk A/S Denmark 1.5 priceline.com Inc. United States 1.7 Thermo Fisher Scientific Inc. United States 1.2 Starbucks Corp. United States 1.6 WuXi PharmaTech (Cayman) Inc. China 1.0 Tempur-Pedic International Inc. United States 1.3 Industrials 14.3 Tods S.p.A. Italy 0.6 Ametek Inc. United States 1.0 Walt Disney Co. United States 1.4 Atlas Copco AB Sweden 1.5 Williams-Sonoma Inc. United States 1.0 Babcock International Group PLC United Kingdom 0.7 Yum! Brands Inc. United States 2.1 Brenntag AG Germany 1.0 Consumer Staples 7.8 Clean Harbors Inc. United States 0.6 Church & Dwight Co. United States 0.7 Experian PLC United Kingdom 1.4 Colgate-Palmolive Co. United States 1.3 Fanuc Corp. Japan 1.6 Diageo PLC United Kingdom 1.7 Keppel Corp. Ltd. Singapore 1.0 McCormick & Co. Inc. United States 1.0 MTU Aero Engines Holding AG Germany 0.5 Monster Beverage Corp. United States 1.4 Rolls-Royce Holdings PLC United Kingdom 1.4 Nestle S.A. Switzerland 1.7 United Parcel Service Inc. Cl B United States 1.4 Energy 7.4 W.W. Grainger Inc. United States 1.1 BG Group PLC United Kingdom 1.5 Weir Group PLC United Kingdom 1.0 Exxon Mobil Corp. United States 1.9 Information Technology 17.6 Petrofac Ltd. United Kingdom 1.1 Apple Inc. United States 3.0 Peyto Exploration & Development Corp. Canada 0.3 Baidu Inc. ADS China 1.8 Saipem S.p.A. Italy 1.8 Check Point Software Technologies Ltd. Israel 1.1 Sasol Ltd. South Africa 0.9 Citrix Systems Inc. United States 1.2 Financials 15.7 Gree Inc. Japan 1.0 Affiliated Managers Group Inc. United States 1.1 International Business Machines Corp. United States 2.0 American Express Co. United States 1.8 QUALCOMM Inc. United States 2.1 Ashmore Group PLC United Kingdom 0.8 Samsung Electronics Co. Ltd. Korea 2.4 Banco Santander-Chile ADS Chile 0.6 SAP AG Germany 2.2 Bank Rakyat Indonesia Indonesia 1.1 SolarWinds Inc United States 0.6 BR Malls Participacoes S/A Brazil 1.1 Materials 3.3 Brookfield Asset Management Inc. Cl A Canada 1.2 BHP Billiton PLC United Kingdom 1.4 Hargreaves Lansdown PLC United Kingdom 0.4 Novozymes A/S Denmark 0.7 Industrial & Commercial Bank of China Ltd. China 1.8 Syngenta AG Switzerland 1.1 JPMorgan Chase & Co. United States 2.0 Telecommunication Services 1.2 Partners Group Holding AG Switzerland 1.2 SoftBank Corp. Japan 1.2 Standard Chartered PLC United Kingdom 1.2 Utilities -- Toronto-Dominion Bank Canada 1.3 [Cash] 3.6 Total 100.0Data calculated in FactSet. The data shown above is taken from a representative account. Individual securities listed in this report are for informational purposes only. Holdings are subject tochange at any time. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities listed. Cash incorporates cashequivalents, accruals, and currency forwards. 19 103383
  • 20. Historical Global Growth Sector Weightings March 31, 2012% of Portfolio Discretionary Staples Energy35 35 3530 30 3025 25 2520 20 2015 15 1510 10 10 5 5 5 0 0 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 Financials Healthcare35 3530 3025 2520 20 Global Growth MSCI AC World IMI Index15 1510 10 5 5 0 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11The data shown above is taken from a representative account. The index is comparable to the strategy in terms of investment approach but contains significantly more securities. Cashincorporates cash equivalents, accruals, and currency forwards. Cash is a residual of the stock selection process. Sectors based on GICS (Global Industry Classification Sectors). Calculated inFactSet. 20 227771
  • 21. Historical Global Growth Sector Weightings March 31, 2012% of Portfolio Industrials IT Materials35 35 3530 30 3025 25 2520 20 2015 15 1510 10 10 5 5 5 0 0 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 Telecom Svcs. Utilities35 3530 3025 2520 20 Global Growth MSCI AC World IMI Index15 1510 10 5 5 0 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11The data shown above is taken from a representative account. The index is comparable to the strategy in terms of investment approach but contains significantly more securities. Cashincorporates cash equivalents, accruals, and currency forwards. Cash is a residual of the stock selection process. Sectors based on GICS (Global Industry Classification Sectors). Calculated inFactSet. 21 227772
  • 22. Historical Global Growth Regional Weightings March 31, 2012% of Portfolio Pacific ex-Japan Japan Europe + ME ex-UK50 50 5040 40 4030 30 3020 20 2010 10 100 0 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 UK United States Canada50 50 5040 40 4030 30 3020 20 2010 10 100 0 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 Global Growth MSCI AC World IMI IndexThe data shown above is taken from a representative account. The index is comparable to the strategy in terms of investment approach but contains significantly more securities. Cashincorporates cash equivalents, accruals, and currency forwards. Cash is a residual of the stock selection process. Calculated in FactSet. 22 227773
  • 23. Historical Global Growth Regional Weightings March 31, 2012% of Portfolio Total Western Hemisphere EM Asia EMEA50 50 5040 40 4030 30 3020 20 2010 10 10 0 0 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 Latin America Total Emerging Markets50 5040 4030 30 Global Growth MSCI AC World IMI Index20 2010 100 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11The data shown above is taken from a representative account. The index is comparable to the strategy in terms of investment approach but contains significantly more securities. Cashincorporates cash equivalents, accruals, and currency forwards. Cash is a residual of the stock selection process. Calculated in FactSet. 23 227774
  • 24. Historical Global Growth Market Cap Weightings March 31, 2012% of Portfolio Large Cap Mid Cap Small Cap80 80 8060 60 6040 40 4020 20 20 0 0 0 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 06/07 06/08 06/09 06/10 06/11 Global Growth MSCI AC World IMI IndexBeginning with 3Q 1998, market caps were defined by small, mid, and large caps as $1.5 billion, $1.5 billion to $10 billion, and over $10 billion, respectively. Beginning with 1Q 2004, thesefigures were adjusted to $2 billion, $2 billion to $12 billion, and over $12 billion. Beginning with 4Q 2007, these figures were adjusted to $3 billion, $3 billion to $15 billion, and over $15 billion.The data shown above is taken from a representative account. The index is comparable to the strategy in terms of investment approach but contains significantly more securities. Cashincorporates cash equivalents, accruals, and currency forwards. Cash is a residual of the stock selection process. Calculated in FactSet. 24 227775
  • 25. Research: The Engine of the Investment Process Research Process Selection CriteriaThe goal of the research process Quality/Governanceis to define the universe, focus Eligibility Liston investment priorities, and • Coverage Universe Sustainable Returnsreview current holdings to Growth Potentialproduce portfolios of highquality companies, balancing thetradeoffs between currentoperating performance and Competitor/Peercompetitive strengths with Group Analysisvaluation considerations. Research Agenda • Active Candidates Valuation Earnings OutlookResearch is led by the researchteam, with a consistent,integrated feedback mechanismfrom portfolio management, Portfolio Holdingsstrategy, and our systematic • Maintenance Riskresearch tools. • Sell Review 25 232299
  • 26. Sourcing New Ideas: Research Agenda • Active new buy candidate list • Ideas may be sourced from portfolio managers or analysts • Ideas can be event driven or may arise from initial meetings, quantitative analytics, or thematic hypothesis • Typically 60-100 securities targeted for 1-6 week evaluation process • 400-500 candidates reviewed annually; expected to yield 200-300 new recommendations 26 232569
  • 27. Sample Research AgendaGlobal research agenda as of 12/31/11 MARKET 52 WK AVG YTD BLAIR QLTY ETRND MOM VAL COMP IM PX ON % CHG Company CAP TRADING PRICE PRICE EPS EPS PE PE LTG DVD AVG AVG AVG AVG QUANT HLDS IM ANALYST DATE Added SINCE Symbol Company Name (USD) VOLUME $ LOCAL % CHG FY1 FY2 FY1 FY2 ROE EST YIELD SCORE SCORE SCORE SCORE SCORE (mm) COVERAGE PM SPONSOR ADDED Date ADD BUY Consumer Discretionary COH Coach Inc. 17,550 196.2 61.04 10.4 3.43 3.99 17.8 15.4 52.7 11.4 1.5 1 10 4 83 1.0 0.3 Spitz, Rita Mccormick, Tracy 11/04/2011 65.64 -7.01 RL Ralph Lauren Corporation 12,745 150.1 138.08 24.5 6.97 8.14 19.8 17.0 19.0 12.3 0.6 6 26 1 94 25.0 0.0 Spitz, Rita Ricci, David 11/04/2011 157.39 -12.27 7731 Nikon Corp. 8,833 4,854.8 1,714.00 4.1 138.50 139.80 12.4 12.3 7.2 14.6 1.9 31 8 8 49 28.0 NA Fennell, Simon Fennell, Simon 02/10/2012 2,064.00 -16.96 PII Polaris Industries Inc. 3,831 46.7 55.98 43.5 3.18 3.80 17.6 14.8 52.3 14.8 1.6 2 8 3 86 2.0 NA Bukovac, Rj Litfin, Matt 10/31/2011 62.71 -10.73 652852 Surya Citra Media 1,674 1,065.9 7,850.00 121.1 426.80 496.40 18.4 15.8 61.0 19.5 2.6 2 36 8 89 1.0 NA Flynn, Andrew Flynn, Andrew 12/09/2011 8,000.00 -1.88 VRA Vera Bradley Inc. 1,306 17.7 32.25 -2.3 1.40 1.66 23.0 19.3 67.8 11.2 0.0 12 16 43 82 34.0 0.0 Coustan, Charles Brewer, Karl 10/12/2011 37.70 -14.46 B57GTL Parkson Retail Asia Ltd. 653 2.6 1.25 NA 0.07 0.09 18.1 14.7 26.6 12.9 0.0 NA 27 54 0 NA NA Anderson, Alaina Anderson, Alaina 12/09/2011 1.21 3.31 612470 Bata India Ltd. 642 67.7 530.45 46.3 24.3 19.0 0.9 16 0 8 90 44.0 NA Anderson, Alaina Anderson, Alaina 10/31/2011 709.50 -25.24 Consumer Staples 612345 Coca-Cola Amatil Ltd. 8,963 30.1 11.51 6.0 0.71 0.78 16.2 14.8 30.6 7.3 4.5 21 59 39 59 50.0 NA Murphy, Jack Murphy, Jack 11/23/2011 12.03 -4.32 HLF Herbalife Ltd. 5,983 67.1 51.67 51.1 3.17 3.50 16.3 14.8 78.8 12.3 1.5 2 13 3 73 2.0 0.1 Spitz, Rita Jostrand, John 11/10/2011 57.15 -9.59 B1Y4WK SLC Agricola S/A 810 2.6 15.50 -29.5 1.14 1.25 13.6 12.4 4.3 16.4 2.2 82 26 68 54 63.0 NA Cope, Travis Cope, Travis 12/09/2011 16.59 -6.57 Energy ESV ENSCO PLC ADS 10,836 158.4 46.92 -12.1 3.18 6.00 14.7 7.9 7.1 13.2 3.0 81 72 26 67 89.0 0.1 Sexton, Ward Jostrand, John 03/01/2011 56.10 -16.36 SM SM Energy Co. 4,683 70.8 73.10 24.0 2.55 4.06 28.7 18.8 16.1 20.4 0.1 56 93 17 91 74.0 19.0 Sexton, Ward Litfin, Matt 10/27/2011 83.22 -12.16 *PD Precision Drilling Corp. 2,847 19.2 10.50 9.4 0.84 1.33 12.5 7.9 8.2 8.1 0.0 56 75 55 57 61.0 0.0 Cope, Travis Cope, Travis 10/14/2011 10.81 -2.87 KIOR KiOR Inc. Cl A 1,039 2.6 10.18 NA -0.83 -0.69 -42.6 10.9 0.0 99 30 65 0 92.0 15.5 Sexton, Ward Litfin, Matt 06/27/2011 15.00 -32.13 *PRY Pinecrest Energy Inc. 455 2.1 2.37 -15.4 0.03 0.18 79.0 13.2 4.1 9.5 0.0 NA 8 10 0 NA NA Cope, Travis Cope, Travis 10/14/2011 1.92 23.44 Financials FRC First Republic Bank 3,960 14.3 30.61 5.1 2.64 2.66 11.6 11.7 15.1 7.4 0.0 31 10 32 55 14.0 29.2 Lane, Mark Lanphier, Rob 10/21/2011 25.27 21.13 SBNY Signature Bank 2,770 18.7 59.99 19.8 3.35 3.72 17.9 16.2 12.7 15.2 0.0 14 22 21 90 37.0 1.9 Lane, Mark Ricci, David 10/21/2011 50.71 18.30 622605 Guaranty Trust Bank PLC 2,584 264.2 14.25 0.3 1.86 2.18 7.7 6.5 22.4 11.7 7.4 23 76 63 7 5.0 NA Neiman, Dj Neiman, Dj 07/08/2011 15.05 -5.32 B00Q6Z L.P.N. Development PCL 599 96.5 12.80 43.8 1.32 1.50 9.7 8.5 29.0 11.9 4.8 1 20 4 31 1.0 NA Neiman, Dj Neiman, Dj 07/08/2011 10.60 20.75 Health Care 092528 GlaxoSmithKline PLC 113,385 111.5 14.72 18.7 1.13 1.23 13.0 12.0 62.2 4.2 4.6 5 34 14 35 6.0 NA Sternberg, Thomas Sternberg, Thomas 12/09/2011 14.40 2.19 B09C0Z Aspen Pharmacare Holdings Ltd. 5,228 108.1 96.68 5.1 6.04 7.12 16.0 13.6 17.3 16.0 0.0 33 11 7 59 49.0 NA Sternberg, Thomas Sternberg, Thomas 12/09/2011 95.40 1.34 CYBX Cyberonics Inc. 926 6.7 33.50 8.0 1.23 1.50 27.3 22.5 18.8 12.9 0.0 5 19 15 83 21.0 NA Wiese, Kurt Brewer, Karl 10/13/2011 28.02 19.56 SSRX 3SBio Inc. ADS 224 1.2 10.22 -32.7 0.73 0.98 14.0 10.8 8.2 16.9 0.0 45 6 81 57 51.0 0.0 Sternberg, Thomas Sternberg, Thomas 12/05/2011 12.18 -16.09 Industrials PLL Pall Corp. 6,594 60.8 57.15 15.3 3.20 3.63 17.8 15.9 22.2 10.0 1.2 8 34 19 90 15.0 1.0 Bukovac, Rj Mccormick, Tracy 11/23/2011 51.61 10.73 6481 THK Co. Ltd. 2,536 2,144.2 1,517.00 -18.7 95.20 110.60 15.9 13.7 8.5 4.3 1.1 45 51 60 36 59.0 NA Preyss, Casey Preyss, Casey 09/20/2011 1,393.00 8.90 UTIW UTi Worldwide Inc. 1,366 10.1 13.29 -37.3 0.80 0.96 16.5 13.8 8.2 10.1 0.5 36 34 60 58 83.0 NA Krasov, Yan Lanphier, Rob 06/27/2011 19.32 -31.21 549923 Pfeiffer Vacuum Technology AG 866 3.2 67.62 -23.2 5.49 5.41 12.3 12.5 15.1 9.9 4.6 20 38 52 63 61.0 NA Preyss, Casey Preyss, Casey 01/11/2012 68.03 -0.60 *BDI Black Diamond Group Ltd. 675 0.7 18.46 71.6 1.16 1.37 15.9 13.5 17.6 17.3 3.1 36 43 1 70 40.0 NA Cope, Travis Cope, Travis 07/08/2011 15.88 16.25 RPXC RPX Corp. 622 5.0 12.65 NA 0.69 0.78 18.3 16.2 15.6 9.6 0.0 31 17 32 31 8.0 NA Jones, Jim Litfin, Matt 11/04/2011 15.41 -17.91 Information Technology LNKD LinkedIn Corporation 6,394 134.7 63.01 NA 0.23 0.47 271.6 136.0 3.2 22.7 0.0 29 5 30 99 38.0 0.0 Benton, William Ricci, David 12/21/2011 64.92 -2.94 NTES Netease Inc ADR 5,809 41.6 44.85 24.1 3.78 4.22 11.9 10.6 28.9 19.3 0.0 9 34 29 34 2.0 NA Fennell, Simon Fennell, Simon 06/10/2011 42.47 5.60 RVBD Riverbed Technology Inc. 3,700 146.2 23.50 -33.2 0.89 1.13 26.3 20.7 10.2 20.6 0.0 9 82 66 95 42.0 39.3 Benton, William Litfin, Matt 09/29/2011 20.75 13.25 QLIK Qlik Technologies Inc. 2,042 35.3 24.20 -6.5 0.29 0.44 82.4 55.4 5.2 17.1 0.0 37 48 22 100 73.0 NA Williams, Colin Balkin, Mike 11/17/2011 30.58 -20.86 SMTC Semtech Corp. 1,619 14.6 24.82 9.6 1.76 1.76 14.1 14.1 18.4 9.1 0.0 11 8 23 80 61.0 0.0 Williams, Colin Balkin, Mike 04/11/2011 26.03 -4.65 *MDA MacDonald Dettwiler & Associates Ltd. 1,471 7.4 47.09 -6.9 2.94 3.67 16.0 12.8 33.4 5.7 2.2 14 69 92 63 36.0 NA Flynn, Andrew Flynn, Andrew 12/09/2011 48.43 -2.77 NVEC NVE Corp. 268 2.6 55.53 -4.0 2.76 3.20 20.1 17.4 16.6 10.8 0.0 15 59 55 86 44.0 NA Williams, Colin Brewer, Karl 10/11/2010 44.13 25.83 MCHX Marchex Inc. Cl B 235 1.5 6.25 -34.5 0.29 0.35 21.2 18.3 2.0 30.0 1.3 54 79 86 43 69.0 NA Williams, Colin Brewer, Karl 05/27/2011 7.43 -15.88 MITK Mitek Systems Inc. 178 2.7 7.25 19.8 0.19 0.52 38.2 13.9 6.7 10.6 0.0 77 95 2 98 97.0 17.0 Crowe, Dan Balkin, Mike 11/16/2011 9.15 -20.77 Materials MON Monsanto Co. 37,517 327.7 70.07 0.6 3.47 4.00 20.2 17.4 16.3 8.6 1.7 4 6 13 84 11.0 6.0 Golan, James Golan, James 01/11/2011 71.37 -1.82 ATI Allegheny Technologies Inc. 5,084 111.9 47.80 -13.4 2.48 3.65 19.3 12.9 9.5 24.3 1.5 55 89 84 54 87.0 NA Sexton, Ward Lanphier, Rob 12/20/2011 42.85 11.55 ROC Rockwood Holdings Inc. 3,029 49.8 39.37 0.6 3.90 4.10 10.1 9.5 23.9 16.5 0.0 36 24 20 50 52.0 28.0 Sexton, Ward Litfin, Matt 05/16/2011 50.44 -21.95 670394 PanAust Ltd 1,931 12.7 3.20 -28.1 0.27 0.46 12.2 7.1 18.7 15.0 0.0 25 63 68 44 13.0 NA Cope, Travis Cope, Travis 10/14/2011 3.10 3.23 B0JJV5 Pidilite Industries Ltd. 1,373 8.3 143.65 -5.3 6.62 8.03 21.7 17.9 31.7 12.6 1.2 6 15 46 94 33.0 NA Cope, Travis Cope, Travis 11/18/2011 162.00 -11.33 673973 Sandfire Resources N.L. 1,018 3.1 6.58 -18.9 -0.03 1.30 5.0 -27.7 9.8 0.0 100 60 21 0 91.0 NA Cope, Travis Cope, Travis 10/14/2011 6.98 -5.73 B3TYW0 China Sanjiang Fine Chemicals Co. Ltd. 240 11.2 1.85 -31.5 0.33 0.43 4.5 3.5 27.6 12.6 4.3 47 22 36 22 57.0 NA Cope, Travis Cope, Travis 12/09/2011 2.31 -19.91 Telecommunication Services 626383 China Unicom (Hong Kong) Ltd. 49,578 527.6 16.34 46.9 0.24 0.50 55.2 26.5 2.1 23.6 0.7 82 93 60 78 79.0 NA Fennell, Simon Fennell, Simon 08/31/2011 16.12 1.36 656320 MTN Group Ltd. 32,901 842.9 143.73 6.9 10.77 12.54 13.3 11.5 25.8 13.0 4.8 7 45 52 21 3.0 103.5 Fennell, Simon Fennell, Simon 12/14/2011 140.50 2.30 473249 Telenor ASA 26,382 320.8 98.10 3.5 7.36 8.75 13.3 11.2 9.2 12.6 4.8 26 95 18 42 25.0 NA Fennell, Simon Fennell, Simon 11/28/2011 92.50 6.05 608624 DiGi.com Bhd 9,516 18.4 3.88 57.7 0.15 0.16 26.6 24.6 91.0 8.2 3.9 1 16 6 86 1.0 0.2 Fennell, Simon Fennell, Simon 12/14/2011 3.67 5.72For illustrative purposes only. Stocks in the research agenda are not necessarily held in any portfolio. The sample shown is not a complete list of stocks on the actual research agenda. 27 232570
  • 28. Sample Research ReportFor illustrative purposes only. Stocks in the research agenda are not necessarily held in any portfolio. 28 232304
  • 29. Sample Research ReportFor illustrative purposes only. Stocks in the research agenda are not necessarily held in any portfolio. 29 232305
  • 30. Sample Research ReportFor illustrative purposes only. Stocks in the research agenda are not necessarily held in any portfolio. 30 232306
  • 31. Mobile Computing Smartphone Share by Operating System Qualitative Factors Quantitative Factors100% Consistency, 90% Profitability Current Total Market Sustainable Competitive and Financial Fundamental Composite 80% Other Company Cap ($B) Advantage Strength Performance Ranking 70% Global Sector 19 36 23 RIM 60% 50% Windows Apple 460.1 Ecosystem 2 1 1 40% Apple iOS Gree 7.9 Scale/Loyal User Base 5 2 4 30% Android Qualcomm 104.5 Intellectual Property 12 13 22 20% 10% Symbian Samsung 143.0 Vertically Integrated Scale 23 25 20 0% Spreadtrum 0.8 Low Cost 17 35 7 2006 2007 2008 2009 2010 2011EAs of December 31, 2011. Scores shown above based on William Blair & Company proprietary quantitative model. The composite represents a weighted formula aggregating the individualscores. For individual and composite score ranks, 1 is best, and 100 is worst. Securities shown above are not necessarily held in the William Blair portfolios. Holdings are subject to change atany time. This is not in any sense a solicitation or offer of the purchase or sale of securities. 31 229486
  • 32. Capitalizing on Rise of the Middle Class in Emerging Markets Qualitative Factors Quantitative Factors Consistency, 3,500 Millions Earning >$6,000 Annually 3,163 Profitability Current Sustainable Competitive and Financial Fundamental Composite 3,000 Company Total Market Value Advantage Strength Performance Ranking 6% CAGR expected in BRICs/N11 2,500 middle class over next 15 years Global Sector 34 42 37 2,000 Cia Hering $4.3B Hybrid Production Model 12 60 38 1,500 1,264 1,320 Clicks Group $1.6B Brands 12 79 36 1,000 691 Diageo $60.3B Brands/Distribution 21 17 17 566 First Mover & 500 Jubilant Foodworks $1.5B Distribution 7 19 31 85 106 165 120 129 0 Nike $40.4B Brands/Marketing 2 55 15 China India Brazil Russia Total BRICs/N11 Sa Sa $1.6B Scale/Brands 1 37 15 2010E 2025E First Mover in Key YUM! Brands $32.2B Growth Markets 14 12 21 Source: UN Population Division, World Bank, OECD, and Goldman Sachs ResearchAs of March 31, 2012. Scores shown above based on William Blair & Company proprietary quantitative model. The composite represents a weighted formula aggregating the individual scores.For individual and composite score ranks, 1 is best, and 100 is worst. Securities shown above are not necessarily held in the William Blair portfolios. Holdings are subject to change at any time.This is not in any sense a solicitation or offer of the purchase or sale of securities. 32 229485
  • 33. Stock Selection: Maintenance, Review, Sell Discipline Global Growth Liquidations YTD 12/31/11Research and portfolio teams shareresponsibility for strategic and Valuationquantitative review 4%Analysts focus on fundamentalperformance, delivery of returns.Portfolio managers have primarysell responsibility but researchinput is expected. Fundamentals 68% Portfolio Strategy 25%Sell Disciplines:• Integrity/governance• Execution• Material adverse change Other 3%• Valuation risk 33 232571
  • 34. Portfolio Construction: Strategy Input • Define quality/growth universe base weightingStrategy recommendations aredesigned to inform the stockselection process as a secondary • Review aggregate fundamental performance andinput using a blend of top-down valuation parameters by sector/regionand company-level data toproduce regional and sectoralrecommendations • Apply thematic and cyclical modifications as recommended 34 232324
  • 35. StrategyMSCI ACWI 12/31/11 3/31/2012By RegionCurrent Earnings Estimates Earnings Estimates Revisions % Earnings Estimates Revisions Aggregate Valuation Growth ExpectationsAggregates (in $mil) Total Total Total 3 Mo 3 Mo 1 Mo 1 Mo 3 Mo 3 Mo 1 Mo 1 Mo Agg EPS Market Earn Earn Earn Rev Rev Rev Rev % Rev %Rev %Rev %Rev EPS P/E P/E P/E Growth Growth CAGR Cap FY0 FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 Rev FY0 FY1 FY2 FY0-FY1 FY1-FY2 FY0-FY2Developed Asia - Far East - Ex Japan 2,054,366 163,686 160,059 180,154 -7,538 -4,994 1,391 1,690 -4.7% -2.8% 0.9% 0.9% -0.6% 12.6x 12.8x 11.4x -2.2% 12.6% 4.9%Developed Asia - Japan 2,835,459 168,320 137,260 215,726 -36,831 -2,496 -4,721 2,040 -26.8% -1.2% -3.4% 0.9% -4.3% 16.8x 20.7x 13.1x -18.5% 57.2% 13.2%Developed Europe - U.K. 2,479,770 220,960 226,369 253,665 -17,058 -15,481 -1,285 -2,491 -7.5% -6.1% -0.6% -1.0% -2.9% 11.2x 11.0x 9.8x 2.4% 12.1% 7.1%Developed Europe+Me Ex Uk 6,752,841 543,165 606,751 682,277 -30,370 -25,836 -4,969 -3,848 -5.0% -3.8% -0.8% -0.6% -2.0% 12.4x 11.1x 9.9x 11.7% 12.4% 12.1%Developed W. Hem - Ex U.S 1,434,900 101,666 110,327 125,539 -6,482 -5,642 -1,019 -808 -5.9% -4.5% -0.9% -0.6% -2.3% 14.1x 13.0x 11.4x 8.5% 13.8% 11.1%Developed W. Hem - U.S 13,855,532 920,521 1,010,582 1,144,558 -11,913 -5,565 502 2,123 -1.2% -0.5% 0.0% 0.2% -0.2% 15.1x 13.7x 12.1x 9.8% 13.3% 11.5%Em - Asia 5,461,999 450,559 513,125 585,193 -13,276 -16,104 -6,827 -6,631 -2.6% -2.8% -1.3% -1.1% -1.8% 12.1x 10.6x 9.3x 13.9% 14.0% 14.0%Em - Emea 1,320,675 161,045 176,686 180,071 -1,247 -5,750 -952 -2,132 -0.7% -3.2% -0.5% -1.2% -1.3% 8.2x 7.5x 7.3x 9.7% 1.9% 5.7%Em - Latin America 2,003,268 149,513 157,439 176,381 -6,841 -4,649 -1,277 -2,371 -4.3% -2.6% -0.8% -1.3% -1.9% 13.4x 12.7x 11.4x 5.3% 12.0% 8.6%Total 38,198,811 2,879,434 3,098,598 3,543,564 -131,558 -86,517 -19,157 -12,428 -4.2% -2.4% -0.6% -0.4% -1.5% 13.3x 12.3x 10.8x 7.6% 14.4% 10.9%Previous Month Earnings Estimates Earnings Estimates Revisions % Earnings Estimates Revisions Aggregate Valuation Growth ExpectationsAggregates (in $mil) Total Total Total 3 Mo 3 Mo 1 Mo 1 Mo 3 Mo 3 Mo 1 Mo 1 Mo Agg EPS Market Earn Earn Earn Rev Rev Rev Rev % Rev %Rev %Rev %Rev EPS P/E P/E P/E Growth Growth CAGR Cap FY0 FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 Rev FY0 FY1 FY2 FY0-FY1 FY1-FY2 FY0-FY2Developed Asia - Far East - Ex Japan 2,125,268 165,277 167,969 180,013 -11,700 -9,404 -3,275 -3,593 -7.0% -5.2% -1.9% -2.0% -3.4% 12.9x 12.7x 11.8x 1.6% 7.2% 4.4%Developed Asia - Japan 2,822,347 171,606 141,998 216,556 -40,391 -9,670 -23,808 -2,505 -28.4% -4.5% -16.8% -1.2% -9.7% 16.4x 19.9x 13.0x -17.3% 52.5% 12.3%Developed Europe - U.K. 2,508,297 221,826 225,889 253,218 -17,427 -15,745 -6,993 -7,232 -7.7% -6.2% -3.1% -2.9% -4.4% 11.3x 11.1x 9.9x 1.8% 12.1% 6.8%Developed Europe+Me Ex Uk 6,800,641 556,998 608,015 675,341 -28,090 -26,611 -9,866 -8,306 -4.6% -3.9% -1.6% -1.2% -2.5% 12.2x 11.2x 10.1x 9.2% 11.1% 10.1%Developed W. Hem - Ex U.S 1,479,046 105,136 111,752 125,232 -6,277 -5,911 -2,440 -3,395 -5.6% -4.7% -2.2% -2.7% -3.5% 14.1x 13.2x 11.8x 6.3% 12.1% 9.1%Developed W. Hem - U.S 13,444,739 921,360 1,010,523 1,142,818 -17,832 -13,767 -3,741 -2,461 -1.8% -1.2% -0.4% -0.2% -0.7% 14.6x 13.3x 11.8x 9.7% 13.1% 11.4%Em - Asia 5,757,381 423,564 488,964 559,175 -9,132 -6,565 -4,245 -1,510 -1.9% -1.2% -0.9% -0.3% -0.9% 13.6x 11.8x 10.3x 15.4% 14.4% 14.9%Em - Emea 1,387,955 155,086 183,156 182,163 1,555 -5,059 1,218 -1,685 0.8% -2.8% 0.7% -0.9% -0.4% 8.9x 7.6x 7.6x 18.1% -0.5% 8.4%Em - Latin America 2,035,957 158,390 161,533 181,118 -7,866 -4,616 -3,472 -2,073 -4.9% -2.5% -2.1% -1.1% -2.4% 12.9x 12.6x 11.2x 2.0% 12.1% 6.9%Total 38,361,630 2,879,242 3,099,799 3,515,632 -137,160 -97,346 -56,622 -32,762 -4.4% -2.8% -1.8% -0.9% -2.2% 13.3x 12.4x 10.9x 7.7% 13.4% 10.5% For illustrative purposes only. 35 232576
  • 36. Strategy AC World All Cap by Region as of March 31, 2012 (Averages) Quality Valuation 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 Dev Asia - Dev Asia - Dev Europe - Dev Europe Dev W Hem - Dev W Hem - Dev Asia - Dev Asia - Dev Europe - Dev Europe Dev W Hem - Dev W Hem - EM - Asia EM - EMEA EM - LATAM EM - Asia EM - EMEA EM - LATAM Pac ex-Japan Japan UK +ME Ex-UK Canada US Pac ex-Japan Japan UK +ME Ex-UK Canada US Average 42 55 41 48 48 39 48 39 45 Average 51 50 47 45 72 53 45 39 48 Max 50 64 49 54 60 44 52 46 51 Max 57 65 56 52 79 61 57 45 62 Min 37 49 34 42 41 35 45 34 39 Min 46 33 43 37 62 46 36 32 31 Current 39 50 38 52 43 38 49 38 46 Current 53 41 47 39 62 54 51 38 62 Etrend Momentum 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 Dev Asia - Dev Asia - Dev Europe - Dev Europe Dev W Hem - Dev W Hem - Dev Asia - Dev Asia - Dev Europe - Dev Europe Dev W Hem - Dev W Hem - EM - Asia EM - EMEA EM - LATAM EM - Asia EM - EMEA EM - LATAM Pac ex-Japan Japan UK +ME Ex-UK Canada US Pac ex-Japan Japan UK +ME Ex-UK Canada US Average 49 51 50 52 49 50 50 50 50 Average 51 62 53 55 49 52 50 47 41 Max 61 75 62 68 63 64 58 62 62 Max 62 81 78 73 60 69 68 61 63 Min 39 40 33 40 35 39 38 39 37 Min 35 31 40 36 31 28 33 35 24 Current 49 51 50 49 55 46 54 50 50 Current 52 51 42 53 50 32 47 45 35 Composite % Composite Score Better than 30 10 100% 20 90% 80% 30 70% 40 60% 50 50% 60 40% 30% 70 20% 80 10% 90 0% Dev Asia - Dev Asia - Dev Europe - Dev Europe Dev W Hem - Dev W Hem - Dev Asia - Dev Asia - Dev Europe Dev Europe Dev W Hem Dev W Hem EM - Asia EM - EMEA EM - LATAM EM - Asia EM - EMEA EM - LATAM Pac ex-Japan Japan UK +ME Ex-UK Canada US Pac ex-Japan Japan -UK +ME Ex-UK - Canada - US Average 45 57 44 48 60 44 46 37 44 Average 33% 19% 34% 30% 15% 37% 36% 48% 38% Max 53 70 57 60 66 56 53 43 54 Max 46% 36% 55% 43% 26% 49% 46% 58% 53% Min 38 44 35 39 50 36 40 32 35 Min 24% 6% 13% 17% 2% 23% 27% 35% 25% Current 44 46 39 46 53 40 51 35 50 Current 33% 33% 39% 29% 20% 41% 27% 48% 31%For illustrative purposes only. 36 232577
  • 37. Strategy AC World All Cap by Sector as of March 31, 2012 (Averages) Quality Valuation 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 Consumer Consumer Staples Energy Financials Health Care Industrials Tech Materials Telecom Utilities Staples Energy Financials Health Care Industrials Tech Materials Telecom Utilities Disc. Disc. Average 43 38 40 52 34 49 44 46 40 53 Average 50 54 47 42 59 51 55 47 43 46 Max 51 42 45 59 39 57 49 57 48 60 Max 56 65 58 47 70 55 68 59 56 64 Min 38 36 33 48 30 44 38 38 36 46 Min 43 45 38 36 45 47 43 38 33 34 Current 42 36 39 54 34 50 42 42 39 53 Current 53 61 50 40 53 51 47 45 43 55 Etrend Momentum 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 Consumer Consumer Staples Energy Financials Health Care Industrials Tech Materials Telecom Utilities Staples Energy Financials Health Care Industrials Tech Materials Telecom Utilities Disc. Disc. Average 51 50 43 52 50 49 52 49 50 51 Average 54 48 44 54 52 52 59 49 55 50 Max 62 61 69 64 59 63 72 70 66 63 Max 69 69 72 68 68 63 80 59 77 74 Min 38 35 18 42 34 40 34 36 32 28 Min 37 23 21 42 30 40 40 33 38 35 Current 44 49 51 47 47 49 44 67 59 55 Current 37 32 48 50 38 44 43 53 49 46 Composite % Composite Score Better than 30 10 100% 20 90% 80% 30 70% 40 60% 50 50% 60 40% 30% 70 20% 80 10% 90 0% Consumer Consumer Health Staples Energy Financials Health Care Industrials Tech Materials Telecom Utilities Staples Energy Financials Industrials Tech Materials Telecom Utilities Disc. Disc. Care Average 47 43 40 49 43 50 50 46 40 51 Average 34% 36% 46% 27% 39% 30% 31% 35% 45% 26% Max 53 47 51 57 52 60 66 56 58 63 Max 46% 47% 70% 37% 52% 43% 44% 49% 57% 42% Min 39 38 26 41 35 42 40 36 33 41 Min 26% 27% 22% 17% 22% 19% 13% 21% 21% 15% Current 41 42 45 46 37 49 40 49 43 56 Current 44% 38% 36% 27% 45% 26% 41% 31% 39% 23%For illustrative purposes only. 37 232578
  • 38. Strategy Input: Concept, Agenda, Execution, and Review Strategy Team Thematic Sector-Based SystematicThematic/Macro George Greig Development Analytics Consumer Quality/GovernanceQuantitative Melissa McGrane, CFA Policy Initiatives Financial Valuation Demographics Healthcare Earnings TrendEconomics Olga Pomerantz Technical Evolution Industrial MomentumResearch Director Joel Gomberg, CFA Lifestyle Resources GrowthPortfolio Analysis Stephanie Braming, CFA Market Environment Technology Return Projections Portfolio Team Research Team Trading Team 38 232323
  • 39. Global Growth Portfolio Attributes March 31, 2012 Average Quantitative Scores (Percentile Ranks) WB LT Growth Earnings Est. Quality Trend Momentum Valuation Composite 8.6% 36.4 45.3 36.8 47.3 35.8 MSCI AC World IMI Index ≈ 9,000 companies Eligibility List of ≈ 2,000 companies 10.4% 34.7 46.7 38.4 56.6 39.8 ≈ 20% of the MSCI AC World IMI Index Global Growth portfolio of 60-100 companies 10.9% 20.1 30.5 23.4 64.9 24.1 ≈ 1% of the MSCI AC World IMI IndexScores shown above based on William Blair & Company proprietary quantitative model. The composite represents a weighted formula aggregating the individual scores. For individual andcomposite score ranks, 1 is best and 100 is worst. The MSCI AC World IMI Index is designed to measure equity market performance in the global developed and emerging markets, making itcomparable to the William Blair Global Growth Portfolio in terms of investment approach; however the index contains significantly more securities than the William Blair Portfolio. 39 228039
  • 40. Global Growth Portfolio Characteristics March 31, 2012 Quality Score - Aggregate Growth Score - Aggregate ETrend Score - Aggregate 0 0 0 20 20 20 40 40 40 60 60 60 80 80 80100 100 100 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Global Growth Equity Global Growth Equity Global Growth Equity MSCI AC World IMI MSCI AC World IMI MSCI AC World IMI Valuation Score - Aggregate Momentum Score - Aggregate Composite Score - Aggregate 0 0 0 20 20 20 40 40 40 60 60 60 80 80 80 100 100 100 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Global Growth Equity Global Growth Equity Global Growth Equity MSCI AC World IMI MSCI AC World IMI MSCI AC World IMIScores shown above based on William Blair & Company proprietary quantitative model. For individual and composite ranks, 1 is best and 100 is worst. 40 229397
  • 41. Global Growth Performance Global Growth Composite vs. MSCI AC World IMI Index Up/Down Market Returns 6/30/07 – 3/31/12 60% 48.56% 40.79% 40% 20% 3.07% 0% -1.35% -20% -40% -37.64% -39.51% -60% Up Markets (Positive Quarters) Down Markets (Negative Quarters) Total Return (All Markets) Global Growth Composite MSCI AC World IMI Index Up markets capture ratio 1.19 Down markets capture ratio 0.95March 2012 performance is preliminary.Calculated using quarterly, annualized data. Investment performance assumes reinvestment of dividends and capital gains and is gross of investment management fees and net of transactioncosts. Performance results will be reduced by the fees incurred in the management of the account. For example, on an account with a 1% fee, and gross performance of 20% over one year, theannual total return on a net of fee basis will result in performance of 18.85%. A $1,000,000 initial investment would grow to approximately $1,440,000 gross of fees, versus $1,412,532 net offees, over a two year period, assuming an annual return of 20%. Investment management fees are described in William Blair & Company’s Form ADV Part 2A. Past performance is not indicativeof future returns. Returns for periods greater than one year are annualized. International investing involves special risk considerations, including currency fluctuations, lower liquidity,economic and political risk. Global Growth Composite inception 6/30/07. The benchmark that best reflects the Global Growth composite’s investment strategy is the MSCI AC World InvestableMarket Index (IMI) Net, which is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets.Composite consists of considerably fewer securities. Please see composite disclosure in appendix for a complete description of the composites. 41 230592
  • 42. Global Research Team Sector Analyst Years at Years in Education William Blair1 Industry2Consumer Jack Murphy, CFA, Partner 7 15 BA, Villanova University Rita Spitz, CFA, Partner 25 33 BBA, Wisconsin – Madison; MBA, University of Chicago Alaina Anderson, CFA, Partner 5 10 BS, Univ. of Pennsylvania; MBA, University of Chicago Charles Coustan 4 7 BA, University of Michigan; MBA, UC – BerkeleyFinancials Joel Gomberg, CFA, Partner 15 18 BS, University of Illinois; MBA, University of Chicago Co-Director of Research Mark Lane, Partner 14 19 BA, Northwestern University; MBA, University of Chicago D.J. Neiman, CFA 10 13 BS, Miami University; MBA, University of MichiganHealthcare Christina O’Hara, PhD, Partner 6 12 PhD, Purdue University; MBA, Wash U in St. Louis Kurt Wiese, CFA, CPA, Partner 11 13 BS, Indiana University; MBA, University of Chicago Thomas Sternberg, CFA 7 9 BS, Duke University; MBA, University of ChicagoIndustrials RJ Bukovac, CFA , Partner 5 24 BA, Cornell University; MSA, DePaul University Casey Preyss, CFA, Partner 11 12 BS, BA, Ohio State University; MBA, University of Chicago Jim Jones, CFA 1 11 BS, Miami University; MBA, University of North CarolinaIT William Benton, CFA , Partner 14 14 BS, University of Illinois; MBA, Tuck School Andy Flynn, CFA, Partner 6 21 BA, University of Kansas; MBA, UNC – Chapel Hill James Golan, CFA, Partner 11 23 BA, DePauw University; MBA, Northwestern University Colin Williams, CFA, Partner 11 13 BA, Grove City College Simon Fennell 1 19 MA, University of Edinburgh; MBA, Cornell UniversityResources Ward Sexton, CFA, Partner 12 12 BS, University of Illinois; MBA, University of Chicago James Golan, CFA, Partner 11 23 BA, DePauw University; MBA, Northwestern University Taylor Cope 5 6 MA, University of St. Andrews Travis Cope 3 4 BA, University of St. Andrews Yan Krasov, CFA 5 9 BS, Northwestern University; MBA, University of ChicagoStrategy Research Melissa McGrane, CFA 10 10 BS, Coe College; MBA, University of Chicago Olga Pomerantz 2 9 BS, University of Chicago, MSc, London School of EconomicsSystematic Research Spiro Voulgaris 4 18 BA, MBA, University of Chicago Steve Englehardt 1 4 BA, Boston College Andrew Kominik, CFA 8 8 BA, Brandeis University; MBA, University of ChicagoAs of April 2012. Research professionals shown in bold are sector team leaders.1. Average years at William Blair is 8 years and the median is 7 years.2. Average years in Industry is 14 years and the median is 13 years. 42 232294
  • 43. Client Relationship Management U.S. Client Relationships European Business Development And Client Relationships John McLaughlin, CFA Tom Ross, Partner Partner Head of European Institutional Head of Institutional Client Relationships Distribution Reto Baruffol, Partner Business Development and Client Client Relationship Services, Continental Europe Client Services Management Bob Duwa, CFA Stefan Hess Julie Stevens, CFA Senior CRM Client Services, Continental Europe Head of Client Services Doug Kryscio, CFA Cliff Kalish Senior CRM Senior Client Services Associate Megan Schlesinger Senior Client Services Associate Alex Schneider Senior Client Services Associate Lizett Ternes Client Services Associate Audrey Daniels Client Services Associate Dana Denizman Client Services AssociateAs of April 2012. 43 231525
  • 44. Global Equity TeamW. George Greig, PartnerGeorge Greig joined William Blair & Company in 1996 as International Growth Team leader. In addition to this role, George is the portfolio manager for the William Blair InternationalGrowth and International Leaders strategies and co-portfolio manager of the Global Growth strategy. He also serves as the global strategist for William Blair & Company’s InvestmentManagement Group and is on the firm’s Executive Committee. Prior to joining the firm, George headed international equities for PNC Bank in Philadelphia and previously served asInvestment Director with London-based Framlington Group PLC, where he also managed global and emerging markets funds. George has over 25 years of experience in domestic andinternational investment research and portfolio management. Education: B.S., Massachusetts Institute of Technology; M.B.A., Wharton School of the University of Pennsylvania.Kenneth J. McAtamney, PartnerKen McAtamney is a co-portfolio manager for the William Blair Global Growth strategy. He joined William Blair & Company in 2005 as part of the International Growth team and previouslyserved as co-director of research, as well as mid-large cap Industrials and Healthcare analyst. Prior to joining William Blair, Ken was a Vice President for Goldman Sachs and Co., responsiblefor institutional equity research coverage for both international and domestic equity, and he was a Corporate Banking Officer with NBD Bank. Education: B.A., Michigan State University;M.B.A. Indiana University.Stephanie G. Braming, Partner, CFAStephanie Braming joined William Blair & Company in 2004 as the International and Global Equity Specialist. She participates in the team’s decision-making meetings, conducts portfolioanalysis and is responsible for communicating current portfolio structure and outlook to clients, consultants, and prospects. Prior to joining the firm, Stephanie was a Principal at MercerInvestment Consulting, where she was responsible for the strategic investment direction of her public fund, corporate, healthcare and foundation clients. In addition to her clientresponsibilities, Stephanie served on Mercer’s United States Research Rating Committee, which assessed research ratings for investment manager strategies. Prior to her role at Mercer,Stephanie worked at the Federal Reserve Bank of Chicago. She is a member of the CFA Institute and the CFA Society of Chicago where she recently served on the Society’s Board of Directors.Education: B.A. DePauw University; M.B.A., University of Chicago Booth School of Business.Blake S. Pontius, CFABlake Pontius joined William Blair & Company’s International Growth team in 2005. As International Equity Specialist, Blake participates in the team’s decision-making meetings, conductsportfolio analysis and is responsible for communicating current portfolio structure and outlook to clients, consultants, and prospects. Previously, he was a Client Relationship Managerresponsible for senior level relations with the firm’s institutional International Growth clients. Prior to joining William Blair, Blake was with UBS Global Asset Management in consultantrelations/communications and a Senior Analyst at Mercer Investment Consulting. He is a member of the CFA Institute and the CFA Society of Chicago. Education: B.A. with honor inEconomics, Michigan State University; M.B.A. with distinction in Finance, DePaul University. 44 103385
  • 45. BiographiesResearch:Alaina Anderson, Partner, CFAAlaina Anderson joined William Blair & Company in 2006 as an analyst on the International Growth team, focusing on small cap Consumer stocks. Prior to joining William Blair & Company,Alaina was a Senior Analyst in the Investments Department of the MacArthur Foundation. Her responsibilities included providing research support for internally managed portfolios, as wellas investment manager due diligence, selection and monitoring for the Foundation’s U.S., Non-U.S. and hedge fund portfolios. Prior to her tenure with the MacArthur Foundation, Alainaserved as an investor relations consultant with Ashton Partners and a financial advisor with UBS Painewebber. Alaina is a trustee of Lawrence Hall Youth Services and a member of theInvestment Analyst Society of Chicago. B.S., University of Pennsylvania Wharton School; M.B.A., University of Chicago Booth School of Business.William W. Benton, Partner, CFA, CPAWilliam Benton is the Technology Sector Team Leader and Research Analyst focused on US large cap companies. He joined the team in his current role in 2007 and previously was aResearch Analyst within the Technology sector of William Blair’s sell-side research group for 10 years. In this position, William was twice named “Best on the Street” in The Wall StreetJournal’s annual analyst survey. He joined William Blair & Company in 1997. Prior to that, he worked at SBC Warburg, U.S. Cellular, May Department Store, and Monsanto. He is a member ofthe CFA Society of Chicago and holds the Certified Management Accountant designation. Education: B.S., Finance, University of Illinois Champaign-Urbana; M.B.A., Dartmouth College (TuckScholar), Amos Tuck School of Business Administration.RJ Bukovac, Partner, CFA, CPARJ Bukovac is the Industrials Sector Team Leader and Research Analyst focused on US large cap companies. He joined William Blair & Company as a Research Analyst in 2007. Previously, RJworked in the research department and within the portfolio teams of Putnam Investments for 10 years. During his time at Putnam, he covered a broad range of domestic and internationalequities including Industrial, Consumer Cyclicals, Consumer Staples, and Diversified Media. Prior to that, he was an analyst for privately-held businesses and determined Fair Market Valuesfor purposes of reorganizations, divestitures, as well as mergers and acquisitions in the Valuation Consulting Practice of Price Waterhouse in Chicago for nine years. RJ is a member of theCFA Society of Chicago and the CFA Institute, as well as the Illinois CPA Society and AICPA. Education: B.A., Economics and Finance, Cornell University; M.S.A., DePaul University.Harvey H. Bundy, CFA, PartnerHarvey Bundy is the Co-Director of Global Research for Investment Management and a small and mid cap generalist Research Analyst focused on US companies. Prior to refocusing hisefforts to research in 2008, Harvey was a Portfolio Manager for the Mid Cap Growth and Small-Mid Growth teams. He co-founded the Small-Mid Growth team in 1998. Prior to that, Harveyserved as the Director of Research in the firm’s sell-side research group, where he was responsible for the selection of names on the firm’s Current Better Values List. His more than 25 yearsof analytical coverage has included Connectors, Specialty Insurance, Insurance Brokers, Software, and Distribution. Harvey was a member of the firm’s Executive Committee from 1988through 1997, and originally joined William Blair & Company in 1968. Education: A.B., Yale University; M.B.A., Dartmouth College Amos Tuck School of Business Administration.Taylor CopeTaylor Cope is an International Research Analyst covering the Energy, Materials and Utilities sectors. He joined William Blair & Company in 2007 as an International Research Associate,working as a generalist on individual projects under the guidance of research analysts. Prior to joining the firm, Taylor was a Research Analyst at Giuliani Capital Advisors in Chicago, wherehe was responsible for new opportunity generation, deal support and industry intelligence in the Retail, Consumer and Financial sectors. Education: M.A. (Hons), University of St. Andrews,Scotland. He is a Level III CFA candidate.Travis CopeTravis Cope is an International Research Analyst covering the small cap Energy and Materials sectors. He joined William Blair & Company in 2008 as a Global Research Associate, supportingthe Global Energy team under the guidance of research analysts. Prior to joining the firm, Travis was an Analyst at Macquarie Bank in Chicago, where he engaged in Corporate Restructuringadvisory. Education: B.A., International Relations and Modern History, University of St. Andrews, Scotland.Charles J. CoustanCharles Coustan is a Research Analyst on the Consumer sector team, focused on US small cap companies. He joined William Blair & Company as a Research Analyst in 2007. Previously,Charles was a Research Analyst at Wells Capital Management covering Semiconductors and Consumer stocks for two years. Prior to that, he was a Research Analyst at Lincoln EquityManagement focusing on Consumer stocks for two years. He also spent five years in various entrepreneurial roles in the technology industry, including experience in Internet productmanagement and marketing and a lead role in the sale of one firm. Charles also has seven years of investment experience in commercial real estate. Education: B.A., Economics, University ofMichigan; M.B.A., University of California at Berkeley Haas School of Business.Dan Crowe, CFADan Crowe is a Research Analyst focused on the U.S. small cap space across all sectors. He joined William Blair & Company as a Research Analyst in 2011. Previously, he was a midcapportfolio manager at Pyramis Global Advisors and prior to that a portfolio manager and analyst at The Boston Company / Founders Asset Management. He began his career as a generalistanalyst at Marsico Capital Management. Dan is a member of the CFA Institute and the CFA Society of Boston. Education: B.S. in Mechanical Engineering from the University of Illinois. 45 103386
  • 46. BiographiesSimon FennellSimon Fennell joined William Blair & Company in 2011 as an analyst on the International Growth team, focusing on large cap Technology, Media and Telecom stocks. Previously Simon was aManaging Director in the Equities division at Goldman Sachs in London and Boston, where he was responsible for institutional, equity research coverage for European and Internationalstocks. Previously, Simon was in the Corporate Finance Group at Lehman Brothers in London and Hong Kong, working in the M&A and Debt Capital Markets Groups. Education: M.A.,University of Edinburgh; M.B.A., Johnson Graduate School of Management, Cornell University.Andy G. Flynn, Partner, CFAAndy joined the International Growth team in 2007 and conducts research on small cap Technology, Media and Telecom Services stocks. Prior to joining the International team, Andyfocused on domestic Consumer and Industrial companies at William Blair for two years. Before joining the firm, Andy was employed as a Senior Equity Analyst and Portfolio Manager atNorthern Trust specializing in mid and small capitalization growth companies. Prior to that he worked as a Senior Equity Analyst at Scudder Kemper Investments and began his career atFidelity Investments as a Research Assistant. Andy is a Chartered Financial Analyst, and a member of the CFA Institute and the CFA Society of Chicago. Education: B.A., Economics, Universityof Kansas; M.B.A., Finance emphasis, University of North Carolina at Chapel Hill.Joel Gomberg, Partner, CFAJoel Gomberg is the Co-Director of Global Research for Investment Management, Global Financials Sector Team Leader, and conducts mid-large cap non-US Financials research. Beforejoining the International Growth team in 2006, Joel was the group head of the Financial sector within William Blair & Company’s sell-side Research Department. He joined the firm in 1997 asan equity analyst following the Finance industry, including Commercial Banks, Global Investment Banks, Exchanges, Retail Brokers and Commercial Property Service companies. In this role,Joel was included in The Wall Street Journal’s annual analyst survey, “Best on the Street” three times. Previously, Joel was an equity analyst at Duff & Phelps and Howe Barnes Investmentscovering specialty finance and bank stocks. He also worked at The Northern Trust Company, primarily in commercial banking and credit policy. Education: B.S., University of Illinois atUrbana/Champaign; M.B.A., University of Chicago Booth School of Business.Jim Jones, CFAJim Jones is a Research Analyst on the Industrials sector team, focused on US small cap companies. He joined William Blair & Company as a Research Analyst in 2010. Previously, Jim was anInvestment Analyst at Federated Investors for four years. Prior to that, he was a Research Analyst at Credit Suisse in 2005 and an Associate at Ashton Partners for nearly two years. Jim is amember of the CFA Institute and the CFA Society of Pittsburgh. Education: B.S., Accounting, Miami University; M.B.A., University of North Carolina.Yan Krasov, CFAYan Krasov is a Research Analyst on the Industrials sector team focused on US small cap Materials, US all cap Transports, and US all cap Engineering and Construction stocks. Yan joinedWilliam Blair & Company in September of 2006 as a Research Associate. Prior to joining the firm, Yan spent four years at JPMorgan Securities in Chicago, where he began his career inInstitutional Equity Sales and in the Private Client Services division. Education: B.S., Speech and Economics, Northwestern University; M.B.A., University of Chicago Booth School of Business.Mark Lane, PartnerMark Lane is a Research Analyst on the Financials sector team focused on US companies across all capitalizations. He joined the team in April 2011 after serving as a financial sector analystwith the firm’s sell-side Research Department, where he specialized in asset management, brokerage, exchanges, and investment banking. He joined William Blair & Company in 1998.Previously, Mark worked as a senior underwriter for The St. Paul Companies, analyzing specialty property-casualty insurance risks. He also worked at Goldman Sachs in Chicago as ananalyst in the high-net-worth money management group. Education: B.A. Economics, Northwestern University; M.B.A., University of Chicago Booth School of Business.Jack Murphy, Partner, CFAJack Murphy joined the International Growth team in early 2011, conducting research on large-mid cap Consumer stocks. He is the Global Consumer sector team leader. Prior to joining theInternational team, Jack was a Research Analyst within William Blair & Company’s sell-side Research Department focusing on e-commerce and hardline retailers. He joined the firm in 2005.Previously, Jack worked at Credit Suisse First Boston for nearly six years as an equity research analyst covering a broad range of retail companies. Before CSFB, he worked as an equityresearch analyst at Lehman Brothers and as an equity research associate at Salomon Brothers. Prior to sell-side research, he worked as a financial analyst for General Electric Capital, havinggraduated from GE’s Financial Management Program. Education: B.A., Economics, magna cum laude, Villanova University.D.J. Neiman, CFAD.J. Neiman is an International Research Analyst covering small cap Financial stocks. Before transitioning to the International Growth team in December 2009, he was an analyst in WilliamBlair & Company’s sell-side research group, covering the Financial sector with a focus on the asset management and advisory investment banking industries. Previously, he was a senioraccountant with William Blair Funds and a fund analyst at Scudder Kemper Investments. He was awarded the Chartered Financial Analyst designation in 2002 and is a member of the CFASociety of Chicago. Education: B.S., Miami University; M.B.A., high distinction, University of Michigan Ross School of Business.Christina M. O’Hara, Partner, Ph.D.Christina O’Hara is the Healthcare Sector Team Leader and Research Analyst, focused on US large and mid cap companies. She joined William Blair & Company in 2005 as a Research Analyst.Previously, Christina was employed as a Senior Equity Analyst at Principal Financial Group specializing in small capitalization Healthcare companies. Prior to that, she was as an EquityAnalyst at Bank of America. Prior to joining the investment industry, Christina spent eight years as a research scientist, studying neurological disorders. Education: B.A., Biology and French,Hillsdale College; M.B.A., Finance emphasis, Washington University - St. Louis; Ph.D., Biological Sciences, Purdue University - Indianapolis. 46 103387
  • 47. BiographiesCasey K. Preyss, Partner, CFACasey Preyss is an International Research Analyst covering large cap Industrials stocks. He joined William Blair & Company’s International Growth Team in 2003 as a Quantitative Analyst.Previously, Casey spent three years as an Investment Associate and Performance Analyst within William Blair & Company. Prior to joining the firm, Casey was with Thomas WhiteInternational as an International Equity Research Sales Associate. Education: B.S. B.A., The Ohio State University; M.B.A., University of Chicago Booth School of Business.Ward D. Sexton, Partner, CFAWard Sexton is the Energy Sector Team Leader and a Research Analyst, focused on US companies across all capitalizations. He joined the team in 2001 and previously was with WilliamBlair’s corporate finance group for two years. He joined William Blair & Company in 1999. Ward is a member of the CFA Institute and the CFA Society of Chicago. Education: B.S., Financewith Honors, University of Illinois Urbana-Champaign; M.B.A., High Honors, University of Chicago Booth School of Business.Rita Spitz, Partner, CFARita Spitz is a Research Analyst focused on US large and mid cap Consumer companies. From 2001 to 2008, she was the Director of Research in Investment Management at William Blair, andfrom 1999 to 2001, she also served as a Research Analyst. Previously, Rita was an Analyst for the firm’s sell-side research group covering Advertising and Marketing firms for thirteen years.She joined William Blair & Company in 1986. Prior to that, she was with Northern Trust Company for seven years and was also an Equity Analyst at Harris Bank and Trust. At these firms shecovered Retail, Broadcasting, Cable, Publishing, Consumer Products, and Distribution companies. Rita is a member of the CFA Society of Chicago, the CFA Institute and The Economic Club ofChicago. Between 2002 and 2006, she served as a member of the Financial Accounting Standards Advisory Council, which provides the Financial Accounting Standards Board perspectivefrom financial-statement preparers and users and professionals from the accounting and securities industries. Rita also is a trustee of the Music Institute of Chicago and The Joffrey Ballet.Education: B.B.A., Finance and Spanish, University of Wisconsin-Madison; M.B.A, University of Chicago Booth School of Business.Thomas A. Sternberg, CFATommy Sternberg is an International Research Analyst covering Healthcare stocks. He joined William Blair & Company in 2004 as a Research Associate in Investment Management focusingprimarily on the Healthcare industry. Previously, Tommy spent two years at Oak Brook Bank where he served as an equity analyst in the Investment Management and Trust Department. Heholds the Chartered Financial Analyst designation and is a member of the CFA Society of Chicago. Education: B.S., Economics, Duke University; MBA, University of Chicago Booth School ofBusiness.Mark C. Thompson, CFAMark Thompson is a Research Analyst focused on the U.S. small cap space across all sectors. He joined William Blair & Company as a Research Analyst in 2006. Previously, he was a researchgeneralist at Kidron Capital for three years. Prior to that, he was a Research Analyst covering Healthcare at American Express for two years. Mark is a member of the CFA Institute and theCFA Society of Chicago. Education: B.B.A., Finance (emphasis in Accounting), University of Iowa; M.B.A., Finance, University of Iowa.Kurt M. Wiese, Partner, CFA, CPAKurt Wiese is a Research Analyst on the Healthcare sector team, focused on US small cap companies. He joined the team in 2001 after serving as a member of William Blair’s corporatefinance Healthcare team, where he was engaged in all aspects of transaction execution. He joined William Blair & Company in 2000. Prior to that, he worked in the Chicago audit practice ofPricewaterhouseCoopers for two years. Kurt is actively involved within the Chicago community through his philanthropic work at the Chicago Jesuit Academy, a full-scholarship, college-prep, middle-school for underprivileged boy’s on Chicago’s West Side. Kurt was a participant at the Center for Japanese Language and Culture at Nanzan University in Nagoya, Japan.Education: B.S., Accounting and Finance, Indiana University; M.B.A., University of Chicago Booth School of Business.Colin Williams, Partner, CFAColin Williams is a Research Analyst on the Technology sector team, focused on US small cap companies. He requested to resume his research responsibilities in 2008 after co-managing theSmall Cap Growth strategy for two years. He originally joined William Blair Investment Management as a Research Analyst in 2002. Prior to that, he worked as a Research Associate in thefirm’s sell-side research group. He joined William Blair & Company in 2000. Previously, Colin held several finance positions of increasing responsibility at Allegiance Healthcare, a division ofCardinal Health. Colin is a member of the CFA Institute and the CFA Society of Chicago. Education: B.A., Economics, Grove City College.Portfolio Management:Michael P. Balkin, PartnerMichael Balkin is a Portfolio Manager on the Small Cap Growth team. He rejoined William Blair & Company in 2008 after three years as a Portfolio Manager and Chief Investment Officer ofMagnetar Investment Management. He originally joined the William Blair Small Cap Growth team as a Portfolio Manager in late 1999. Prior to that, he worked in William Blair’s sell-sideinstitutional research sales group, specializing in small cap growth companies. Michael originally joined the firm in 1990. Education: B.A., Northwestern University.Karl W. Brewer, Partner, CFAKarl Brewer is a Portfolio Manager on the Small Cap Growth and Small-Mid Cap Growth teams. He joined the Small Cap Growth team in 1999 and the Small-Mid Growth team in 2002. Hejoined William Blair & Company in 1996, serving as a Research Analyst for three years. Prior to that, he was in the Mergers & Acquisitions and Corporate Finance Departments at LehmanBrothers Inc. for six years. Education: B.A., Washington and Lee University; M.B.A., Northwestern University Kellogg Graduate School of Management.David C. Fording, Partner, CFADavid Fording is a Portfolio Manager on the All Cap Growth team. He joined the team and William Blair & Company in 2005. From 2010 to 2011, he was also Co-Director of Global Researchfor Investment Management. Previously, David was a Portfolio Manager for the Mid Cap Growth Fund at TIAA-CREF Investment Management, Inc. for two years. Prior to that role, he was anEquity Analyst responsible for covering Media and Entertainment stocks on a global basis for five years, and he was a member of the Large Cap Growth Portfolio Management team for twoyears. He is a member of the CFA Institute and the CFA Society of Chicago. Education: B.A., Economics, summa cum laude, Tufts University, Phi Beta Kappa; M.B.A., Finance, New YorkUniversity Stern School of Business. 47 103388
  • 48. BiographiesJames Golan, Partner, CFAJim Golan is a Portfolio Manager on the Large Cap Growth team and has been a member since 2005. Beginning in 2011, in addition to his role as a Portfolio Manager, he is responsible forresearch coverage of large cap stocks within the Technology and Resource sectors. From 2000 to 2007, Jim served as a Research Analyst focusing on Financial, Technology, Industrial andResource companies. He joined William Blair & Company in 2000. Previously, Jim worked at Citigroup Global Asset Management where he was a Global Research Team Leader for theTelecom sector and a key member of the team that devised valuation metrics for standardizing the analysis of domestic and international companies. Jim began his career at KemperFinancial as a Research Analyst covering Telecom, Technology, Energy and Industrial companies. He is a member of the CFA Institute and the CFA Society of Chicago. Education: B.A.,Economics, DePauw University; M.B.A., Finance, Northwestern University Kellogg Graduate School of Management.John F. Jostrand, Partner, CFAJohn Jostrand is a Portfolio Manager on the All Cap Growth team. He joined William Blair & Company in 1993. From 1997 to 2010, he was also a Portfolio Manager for the Large Cap Growthteam. Previously, John was Director, Investments, Equity Portfolio Manager, and Venture Capital Funds Manager with TRW, Inc. for 10 years. Prior to that, he was an Assistant Trust Officer,Equity Fund Manager, and Research Analyst with Boatmen’s National Bank for five years. He is a member of the CFA Institute, the CFA Society of Chicago, and past President of the PilgrimVillage Board of Trustees. He is a Trustee of the Chancellor’s Society at the University of Missouri and a Director of the Easter Seals of DuPage and the Fox Valley Region. He is also Director ofthe Board of the CFA Society of Chicago. Education: B.A., Economics, University of Missouri; M.B.A., Finance, University of Michigan.Robert C. Lanphier, PartnerRob Lanphier is a Portfolio Manager on the Mid Cap Growth and Small-Mid Cap Growth teams. He co-founded the Mid Cap Growth strategy in 1997 and the Small-Mid Cap Growth strategy in1998. Rob has extensive experience in the Industrials sector and previously served as the Industrials Sector Team Leader. Prior to that, he was with William Blair’s sell-side institutionalsales group for eight years. He joined William Blair & Company in 1987. Prior to joining the investment industry, Rob was with Emerson Electric Corporation for nearly six years. Education:B.S., Purdue University; M.B.A., Northwestern University Kellogg Graduate School of Management.Matthew A. Litfin, Partner, CFAMatthew Litfin is a Portfolio Manager on the Small-Mid Cap Growth team. He joined the team in 2007 as a dedicated analyst before becoming a portfolio manager in 2008. Matthew joinedWilliam Blair & Company in 1997 as a Research Analyst, and in 2004 became the Group Head of Business Services research within William Blair & Company’s sell-side research department.Matthew was twice named “Best on the Street” in The Wall Street Journal’s annual analyst survey. Previously, he was a municipal bond analyst with John Nuveen & Company.Education: B.S., Finance, summa cum laude, University of Tennessee Knoxville; M.B.A., Harvard Business School.Todd M. McClone, Partner, CFATodd McClone joined William Blair & Company in 2000 as part of the International Growth Team. He is the lead portfolio manager for the William Blair Emerging Leaders and EmergingMarkets Small Cap Growth strategies and is a portfolio manager for the Emerging Markets strategy. Previously, he was a senior research analyst specializing in international equity forStrong Capital Management. Prior to joining Strong Capital Management, he was a Corporate Finance Research Analyst with Piper Jaffrey. At Piper Jaffray, he worked with the corporatebanking financials team on a variety of transactions including initial public offerings, mergers and acquisitions and subordinated debt offerings as well as issued fairness opinions andconducted private company valuations. Education: B.B.A. and B.A. University of Wisconsin – Madison.David Merjan, Partner, CFADavid Merjan joined William Blair’s International Growth Team in 1998. He serves as a portfolio manager for the International Developed Plus and ADR strategies. Prior to joining WilliamBlair, David was with Hughes Electronics in Los Angeles in various capacities, including the Corporate Treasury department where he focused on international mergers and acquisitions andmanaged corporate currency and interest rate portfolios as well as in the pension management subsidiary of Hughes where he managed an international equity fund. Education: B.A.,Dickinson College; M.I.M., American Graduate School of International Management. David has the Chartered Financial Analyst designation and is a member of the CFA Institute.David Ricci, Partner, CFADavid Ricci is a Portfolio Manager on the Mid Cap Growth and Large Cap Growth teams. He joined the Mid Cap Growth team in 2005 and the Large Cap Growth team in 2011. Previously, hewas the Group Head for the Consumer sector, focusing on Specialty Retail and E-commerce companies, in William Blair’s sell-side research group. David joined William Blair & Company in1994. Prior to joining the investment industry, he had extensive experience with Procter & Gamble, Melville, and Bain & Company. Education: Sc.B., magna cum laude, Brown University;M.B.A., Harvard Business School.Jeffrey A. Urbina, Partner, CFAJeff Urbina joined William Blair & Company in 1996 as part of the International Growth Team. He oversees International Small Cap and Emerging Markets strategy and research and is thelead portfolio manager for the William Blair International Small Cap Growth and Emerging Markets Growth strategies and is a portfolio manager for the Emerging Leaders and EmergingMarkets Small Cap Growth strategies. Previously, he was a Senior Vice President and Portfolio Manager of the Van Kampen American Capital Navigator Fund, an emerging market equityfund listed on the Luxembourg exchange. While at Van Kampen, he also served as the Director of Research and was a member of the Investment Policy Committee for the firm. Prior tojoining Van Kampen in 1991, Jeff spent almost 15 years in the commercial banking business with Citibank where he was a Vice President and Senior Relationship Manager in the bank’s realestate group, and with Harris Bank in Chicago where he was an International Banking Officer. Education: B.A., Northwestern University; M.M., Northwestern University Kellogg GraduateSchool of Management. 48 155498
  • 49. BiographiesClient Service - US:John V. McLaughlin, Partner, CFAJohn McLaughlin is the Head of Institutional Client Relationships. He joined William Blair & Company in his current role in 2004. Previously, John was with Brinson Partners/UBS Global Asset Management for 14 years.Prior to that, he was an advisor on structured financed and leveraged buy-outs with the former First Chicago Corporation for 10 years. Education: B.A./M.A., University of Nebraska; M.B.A., Arizona State University.Robert J. Duwa, CFARobert Duwa is a Senior Client Relationship Manager. He joined William Blair & Company in his current role in 2010. Previously, Bob was a senior consultant and practice leader with DeMarche Associates Inc. for 11years. While at DeMarche, Bob was also president of Discretionary Management Services a registered investment advisor. Prior to that, he was in client service and marketing roles for First Chicago and Boatmen’sTrust Company. He is a member of the CFA Society of Chicago. Education: B.A. Finance, Loras College.Douglas J. Kryscio, CFADoug Kryscio is a Senior Client Relationship Manager. He joined William Blair & Company in his current role in 2011. Previously, Doug was a Partner and Midwest and Great Lakes Market Business Leader with MercerInvestment Counseling for 11 years. While at Mercer, Doug was also a Senior Analyst, Associate and Principal. Prior to that, he was a Portfolio Manager for First Chicago. He is a member of the CFA Institute and the CFASociety of Chicago. Education: B.B.A. Finance, Department Honors, University of Kentucky; M.B.A., Finance, Graduated with Distinction, DePaul University, Phi Kappa Phi and Delta Mu Delta National Honor Society.Julie Stevens, CFAJulie Stevens joined William Blair & Company in 2000 as a member of Investment Management’s Operations Team. She is the Head of Client Services. She has been a member of the Client Services Team since May of2004. Previously, she spent three years at Bank One as a Financial Analyst for the Asset Liability Management Department. She is a member of the CFA Society of Chicago and the Association for InvestmentManagement and Research. Education: B.S., Indiana University (1995); M.B.A., University of Chicago Booth School of Business.Cliff KalishCliff Kalish is a Senior Client Service Associate. He joined William Blair & Company in his current role in 2011. Previously, Cliff was a Client Relationship Manager at Calamos Investments for six years. Prior to that, Cliffwas a Research Analyst at Ellwood Associates for five years. Cliff is a Level II Candidate in the CFA program. Education: B.S. in Consumer Economics with option in Finance, University of Illinois (1999).Megan SchlesingerMegan Schlesinger joined William Blair & Company in 2010 as a Senior Client Service Associate. As a member of the Institutional Client Relationship team, she is responsible for clients invested in the firm’sinstitutional equity strategies. Previously, she spent three years at Advisory Research, Inc., in client services. Megan is a Level II Candidate in the CFA program, member of the CFA Society of Chicago, and member ofEmpowering Women’s Network. Education: B.S. Finance, minor in International Studies, Graduated with Distinction, The Pennsylvania State University.Lizett TernesLizett Ternes joined William Blair & Company in 2008 as a member of the Client Services Team. She is a primary contact for custodial relationships and is responsible for facilitating all aspects of client fundings andcash flows. B.A., Posse Scholar, Denison University in Ohio.Audrey DanielsAudrey Daniels joined William Blair in 2011 as a member of Investment Managements Institutional Client Service Team. She is a Client Service Associate, responsible for both international and domestic accounts.Previously, she has held multiple client service positions at Citadel and UBS, and more recently supported institutional accounts as a Portfolio Administrator for Mesirow Financial. Audrey holds the NASD Series 7 andSeries 66 licenses. Education: B.B.A. in Economics, University of Iowa; M.A.T. in Secondary Teaching, National Louis University.Dana DenizmanDana Denizman joined William Blair & Company in 1999 as a member of the Small Cap Growth Team. Currently, she is responsible for client service, and has been a member of the Client Services Team since May 2004.Previously, she spent four years at PaineWebber in various positions, including Registered Sales Assistant, Branch Office Administrator and in the Management Development Program. Prior to that, Dana spent fouryears at American Century as a Client Service Representative. B.A., University of Iowa (1991).Client Service – Europe:Thomas Ross, PartnerTom Ross is the Head of European Institutional Distribution. He joined William Blair & Company in 2007. Previously, Tom was a Managing Director at bfinance International for seven years. Prior to that, he was amanagement consultant with McKinsey & Company. Education: B.A., University of Manchester; M.B.A., INSEAD.Reto Baruffol, PartnerReto Baruffol is responsible for institutional marketing and client service on the European continent. He began this role in 2007. Previously, he served as an Institutional Sales Representative for William Blair’s sell-side brokerage and research group. He joined William Blair & Company in 1995. Previously, Reto was an Assistant Manager with Brown Brothers Harriman in New York and Zurich for four years. Education: M.B.A.,Marketing and Management, Zurich University.Stefan Hess, CIIAStefan Hess is responsible for institutional client service on the European continent. He joined William Blair & Company in 2010. Previously, he worked as a Senior Investment Consultant with Complementa for threeyears. Prior to that, he headed the investment controlling team at Swiss Life after joining from Accenture, where he worked as a Business Consultant in the Financial Services Industry Group. He started his industrycareer as Portfolio Control Officer at Julius Baer Asset Management. Education: M. Sc. in Management, Technology and Economics from Swiss Federal Institute of Technology (ETH), Zurich. 49 202887
  • 50. BiographiesSystematic Research:Spiro VoulgarisSpiro Voulgaris joined William Blair & Company in 2007 as a Senior Quantitative Analyst in the Investment Management division of the firm. He brings to the firm approximately 15 yearsexperience as a quantitative analyst and strategist. Prior to joining the firm, Spiro was a Senior Quantitative Analyst with Neuberger Berman for five years and subsequently workedalongside the same investment professionals for an additional 3 years while with the Northern Trust. He was also with Lehman Brothers for six years where he was a Strategist andQuantitative Analyst for their global and U.S. Investment Strategy teams in London and New York. Education: B.A., Economics, University of Chicago; M.B.A., with a concentration in Statisticsand International Finance, University of Chicago Booth School of Business.Steven J. EnglehardtSteve Englehardt joined William Blair & Company in 2011 as a Quantitative Resources Analyst. He is responsible for implementing quantitative models developed by the QuantitativeResearch Team. He acts as the liaison between the Quantitative Research Team and users of quantitative research. Prior to joining the firm, Steve was a Consultant and Product Developer atFactSet Research Systems in Boston and Norwalk, CT. Education: B.A. Economics, Boston College. He is a Level III CFA candidate.Andrew Kominik, CFAAndrew Kominik joined William Blair & Company in 2003. After serving as a marketing analyst and portfolio construction analyst, Andrew moved into his current role, quantitative portfolioanalyst, in 2007. He primarily supports equity management teams in the use of internal and external quantitative models to evaluate portfolio risk and performance. Andrew also developsand programs multifactor quantitative models that are used by the fundamental equity analysts and portfolio managers. He also holds a CFA charter. Education: B.A., History, BrandeisUniversity, magna cum laude; M.B.A., with concentrations in Econometrics & Statistics and Finance, University of Chicago Booth School of Business.Strategy Research:Melissa McGrane, CFAMelissa McGrane joined William Blair & Company Investment Management in 2001 and has been in her current role as a quantitative strategy analyst since 2007. She joined the researchteam in 2004 as a research associate focusing on companies in the consumer and financial sectors. Previously, she spent three years as a fixed income associate within the department.Melissa received her CFA charter in 2004. Education: B.S. in Economics and Business Administration, Coe College, magna cum laude; M.B.A., University of Chicago Booth School of Business.Olga PomerantzOlga Pomerantz joined William Blair & Company in 2009. She is responsible for economic research across all regions and sectors. Prior to joining the firm, Olga was a Senior Economist at theNational Institute of Economic and Social Research in London, UK, where she was responsible for macroeconomic forecasting and thematic research projects for international organizationsand government bodies. Education: B.A., University of Chicago; M.S.c Economics, London School of Economics and Political Science. 50 204989
  • 51. Glossary - TermsAlpha : A measure of a portfolio’s return in excess of the market return, after both have been adjusted for risk. It is a mathematical estimate of the amount of return expected from a portfolio above and beyond themarket return at any point in time. For example, an alpha of 1.25 indicates that a stock is projected to rise 1.25% in price in a year over the return of the market, or the return when the market return is zero.When an investment price is low relative to its alpha, it is undervalued, and considered a good selection.Beta : A quantitative measure of the volatility of the portfolio relative to the overall market, represented by a comparable benchmark. A beta above 1 is more volatile than the overall market, while a beta below 1 isless volatile, and could be expected to rise and fall more slowly than the market.Developed Markets : Using the Morgan Stanley Capital International (MSCI) geographic definition, this region includes: United Kingdom, Europe (Austria, Belgium, Denmark, Finland, France, Germany, Greece,Ireland, Italy, Netherlands, Norway, Spain, Sweden and Switzerland), Japan, Pacific Asia (Australia, Hong Kong, New Zealand, and Singapore) and the Western Hemisphere (Canada and other Americas).Debt to Total Capital Ratio: This figure is the percentage of each company’s invested capital that consists of debt. Companies with a high Debt to Total Capital level may be considered more risky. From a portfolioperspective, the portfolio Debt to Total Capital Ratio is a weighted average of the individual holdings Debt to Total Capital Ratio.Emerging Markets : Using MSCI’s geographic definition, this region includes: Emerging Markets Asia (China, India, Indonesia, Malaysia, S Korea, Taiwan, and Thailand), Emerging Markets Europe, Mid-East andAfrica (Czech Republic, Hungary, Poland, Russia, Turkey, Egypt, Morocco, and S Africa), and Latin America (Argentina, Brazil, Chile, Columbia, Mexico, Peru and Venezuela).EPS (Earnings Per Share) Growth Rate (Projected): This measure represents the weighted average of forecasted growth in earnings expected to be experienced by the stocks within the portfolio over the nextyear. From a portfolio perspective, the portfolio EPS Growth Rate is a weighted average of the individual holdings EPS Growth Rate.EV/EBITDA : (Enterprise Value / Earnings Before Interest, Taxes and Depreciation-Amortization) : The EV/EBITDA ratio is useful for global comparisons because it ignores the distorting effects of individualcountries taxation policies. Its used to find attractive takeover candidates. Enterprise value is a better measure than market cap for takeovers because it takes into account the debt which the acquirer will have toassume. Therefore, a company with a low EV/EBITDA ratio can be viewed as a good takeover candidate.EV/IC : (Enterprise Value / Invested Capital) Ratio : Enterprise Value (EV), which is market capitalization minus cash plus debt divided by Invested Capital (IC), which is the sum of common stock, preferred stockand long-term debt. This number will get you a simple multiple. If it is below 1.0, then it means that the company is selling below book value and theoretically below its liquidation value.Information Ratio: A measure of risk-adjusted return. The annualized excess return of the portfolio relative to a respective benchmark, divided by the annualized tracking error relative to that same benchmark.The higher the measure, the higher the risk-adjusted return.PBVn : (Price/Book Value) Ratio : The PBV Ratio measures the value of a companys common stock relative to its shareholders equity. A price-to-book multiple above one means that the price of the companyscommon stock is higher than its common shareholders equity. A price-to-book multiple below one means that the price of the companys common stock are less than its break-up value, and the shares may beundervalued.PCF : (Price/CashFlow) : Some analysts favor the price/cash flow over the price-earnings (PE) ratio as a measure of a company’s value. Cash flow is a measure of a companys financial health. It equals cashreceipts minus cash payments over a given period of time.P/E : (Price/Earnings) Ratio : This is the most common measure of how expensive a stock is. Simply, it is the cost an investor in a given stock must pay per dollar of current annual earnings. A high P/E generallyindicates that the market is paying more to obtain the stock because it has confidence in the company’s ability to increase its earnings. Conversely, a low P/E often indicates that the market has less confidencethat the company’s earnings will increase rapidly or steadily, and therefore will not pay as much for its stock.R-squared : A measurement of how closely the portfolio’s performance correlates with the performance of its benchmark, such as the MSC AC World Free ex US Index. In other words, it is a measurement of whatportion of a portfolio’s performance can be explained by the performance of the overall market or index. Ranges from 0 to 1, where 0 indicates no correlation and 1 indicates perfect correlation.Risk (Standard Deviation): A measure of the portfolio’s risk. A higher standard deviation represents a greater dispersion of returns, and thus a greater amount of risk. The annualized standard deviation iscalculated using monthly returns.Sharpe-Ratio : A risk-adjusted measure calculated using standard deviation and excess return (Portfolio return – Risk Free Rate) to determine reward per unit of risk. The higher the Sharpe ratio, the better theportfolio’s historic risk-adjusted performance.Tracking Error : Tracking Error measures the extent to which a portfolio tracks its benchmark. The tracking error of an index portfolio should be lower than that of an active portfolio. The tracking error willalways be greater than zero if the portfolio is anything other than a replication of the benchmark.Trailing 1-Year Turnover: This figure reflects the portfolio’s trading activity by calculating the amount of the portfolio’s holdings bought or sold over the prior year, expressed as a percentage of the portfolio’saverage market value. Turnover figures may be related to the amount of trading costs experienced by the portfolio.Weighted Average Market Capitalization: Market capitalization refers to the total market value of each companys outstanding shares. The Weighted Average Market Capitalization for a portfolio is calculated asthe average market capitalization of the stocks within the portfolio, weighted by the amount of each stock owned.Weighted Median Market Capitalization: This calculation represents the median market capitalization of the stocks in the portfolio, weighted by the amount of each stock owned. 51 29451
  • 52. Glossary – IndicesBarclays Capital Aggregate Bond Index (formerly the Lehman Index): composed of securities from the Barclays Aggregate Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-BackedSecurities Index.Barclays Capital Intermediate Govt./Credit Bond Index (formerly the Lehman Index): Fixed-rate government and corporate bonds rated investment grade or higher.Merrill Lynch 1-Year U.S. Treasury Note Index: comprised of a single U.S. Treasury Bill issued at the beginning of each month and held for a full month. Each month the index is rebalanced and the issue selected is theoutstanding U.S. Treasury Note that matures closest to, but not beyond one year from the rebalancing date.Merrill Lynch 3-Month Treasury Bill Index: An unmanaged index tracking 3-month U.S. government securities.MSCI: (Morgan Stanley Capital International): MSCI indices are the most widely used benchmarks by global portfolio managers. MSCI offers international investors performance benchmarks for 51 national stockmarkets as well as regional, sector, industry group, and industry aggregations.MSCI All Country World ex-US EAFE Index: an unmanaged index that includes developed and emerging markets outside the United States.MSCI All Country World ex-US Small Cap Index: a free float-adjusted market capitalization index designed to measure global developed and emerging market small capitalization equity performance, excluding the U.S.MSCI EAFE IMI Index: a free float-adjusted market capitalization index that is designed to measure equity market performance in the developed markets outside the United States.MSCI All Country World ex-US Index: an unmanaged index that includes developed and emerging markets.MSCI All Country World ex-US IMI Index: a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the US.MSCI All Country World IMI Index: a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets.MSCI All Country World ex-US IMI Growth Index: a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding theUS. It includes those MSCI All Country World ex-US IMI Index securities with higher price-to-book ratios and higher forecasted growth rates.MSCI World ex-US Growth Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S., with higher price-to-book ratios and higher forecasted growth rates.MSCI World ex-US Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S.MSCI All Country World ex-US Small Cap Index: a free float-adjusted market capitalization index designed to measure global developed and emerging market small capitalization equity performance, excluding the U.S.MSCI Emerging Markets IMI Index: a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.MSCI Emerging Markets Small Cap Index: a free float-adjusted market capitalization index that is designed to measure equity market performance of small cap companies in emerging markets.MSCI Emerging Markets Large Cap Index: a free float-adjusted market capitalization index that is designed to measure equity market performance of large cap companies in emerging markets.MSCI World ex-US Small Cap Index: an unmanaged index that includes non-US developed markets.Russell 1000 Index: Measures the performance of the 1000 largest companies in the Russell 3000 Index, which represents approximately 90% of the total market capitalization of the U.S. market.Russell 1000 Growth Index: Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.Russell 1000 Value Index: Measures the performance of the large cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growthvalues.Russell 2000 Index: Measures the performance of the 2000 smallest companies in the Russell 3000 index, which represents approximately 8% of the total market capitalization of the Russell 3000 index.Russell 2000 Growth Index: Measures the performance of those Russell 2000 companies with higher price-to book ratios and higher forecasted growth values.Russell 2000 Value Index: Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.Russell 2500 Index: Measures the performance of the 2500 smallest companies in the Russell 3000 Index.Russell 2500 Growth Index: Measures the performance of those Russell 2500 companies with higher price-to book ratios and higher forecasted growth values.Russell 2500 Value Index: Measures the performance of those Russell 2500 companies with lower price-to book ratios and lower forecasted growth values.Russell 3000 Index: Measures the performance of the 3000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.Russell 3000 Growth Index: Measures the performance of those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth values.Russell Midcap Index: Measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 27% of the total market capitalization of theRussell 1000 companies.Russell Midcap Growth Index: Measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values.Russell Midcap Value Index: Measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecastedgrowth values.S&P 500 Index: A measure of domestic equity market performance published by Standard & Poor’s. It consists of 400 leading industrial issues, 20 transportation issues, 40 utilities and 40 finance issues weighted on amarket capitalization basis. The S&P 500 is a broad-based index composed of domestic stocks representing 80% of the market value of all stocks traded on the New York Stock Exchange.A direct investment in an unmanaged index is not possible. 52 29452
  • 53. Composite Disclosure – Global Growth Composite Total Total Composite Assets Composite Year Gross Net Return acwimi net Composite Benchmark Number of End of Percent Non- Assets to Total Ending Asset-Wtd. Asset-Wtd. Benchmark 3-Yr St Dev 3-Yr St Dev Portfolios Dispersion Period(MM) Fee Paying Firm Assets12/31/2007* 16.00% 15.44% 0.90% N/A N/A 5/Fewer N/A $143.29 0.00% 0.00% 12/31/2008 -49.50% -50.03% -42.34% N/A N/A 5/Fewer N/A $130.22 0.00% 0.50% 12/31/2009 43.10% 41.67% 36.41% N/A N/A 5/Fewer N/A $202.89 0.00% 0.55% 12/31/2010 22.11% 21.14% 14.35% 25.93% 24.87% 5/Fewer N/A $309.78 0.00% 0.70% 12/31/2011 -2.47% -3.25% -7.89% 18.76% 20.86% 5/Fewer N/A $1,277.12 0.00% 3.10%Disclosures:William Blair Investment Management claims compliance with the Global Investment Performance Standards (GIPS) and has prepared and presented this report in compliance with theGIPS standards. William Blair Investment Management has been independently verified for the periods January 1, 1993 through December 31, 2010. Verification assesses whether (1) thefirm 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 andpresent performance in compliance with the GIPS standards. The Global Growth composite has been examined for the periods presented through December 31, 2010. The verification andperformance examination reports are available upon request. For purposes of compliance with GIPS, the Firm is defined as all accounts managed by William Blair InvestmentManagement, which is the money management operation of William Blair & Company, LLC. William Blair & Company, L.L.C. is an investment adviser registered with the United StatesSecurities and Exchange Commission(“SEC”). Registration with the SEC does not imply a certain level of skill or training.Global Growth invests in a broad range of companies based in foreign developed and emerging markets and the United States. The benchmark that best reflects the composite’sinvestment strategy is the MSCI All Country World Investable Market Index (IMI) Net, which is a free float-adjusted market capitalization index that is designed to measure equity marketperformance, net of withholding taxes, in the global developed and emerging markets.Portfolio and composite returns are calculated daily. Prior to January 1st, 2009, portfolio returns were calculated monthly using a time-weighted monthly linked return formula withadjustments for cash flows and composites were calculated monthly by weighting portfolio returns based on beginning of month market value. Valuations and returns are denominatedin U.S. Dollars. Accrual accounting is used for dividends. The dividend accruals included in portfolio valuations are net of applicable withholding taxes. Pending withholding tax reclaimsare not accrued for in the portfolio valuations. Portfolios must have an initial market value greater than or equal to $1 million to be included in the composite. New accounts are added tothe composite at the beginning of the month following the first full calendar month under management. Portfolios will be excluded from the composite the first month immediatelyfollowing their last complete month of authorized management by the Firm.Composite dispersion measures represent the consistency of a firms composite performance with respect to the individual portfolio returns within a composite. The dispersion of annualreturns is measured by the asset-weighted standard deviation of the returns in the composite. Dispersion includes only those portfolios that have been included in the composite for theentire year. This eliminates any inaccuracies created by annualizing partial year returns. The three-year annualized standard deviation measures the variability of the composite and thebenchmark returns over the preceding 36-month period. This statistic is not presented until there are 36 months of performance available. Performance results are stated gross and netof investment advisory fees. The management fee schedule is as follows, effective January 2010:First $20,000,000 0.80%Next $30,000,000 0.60%Next $50,000,000 0.50%Next $50,000,000 0.45%Next $50,000,000 0.40%Over $200,000,000 0.30%The maximum fee is 0.800%.The Global Growth Composite was created in July 2007. A complete list and description of firm composites is available upon request. Additional information regarding policies for valuingportfolios, calculating performance and preparing compliant presentations is also available upon request. * Partial period represents data from 7/1/2007. 53 153488
  • 54. Composite Disclosure –International Growth All Cap Growth Total Total Composite Assets Composite Year Gross Net Return acxusimi net Composite Benchmark Number of End of Percent Non- Assets to Total Ending Asset-Wtd. Asset-Wtd. Benchmark 3-Yr St Dev 3-Yr St Dev Portfolios Dispersion Period(MM) Fee Paying Firm Assets 12/31/2002 -13.79% -14.57% -12.94% 17.59% 16.28% 5/Fewer N/A $1,012.05 0.00% 8.52% 12/31/2003 44.10% 42.85% 42.34% 17.03% 17.73% 11 0.46% $3,157.85 0.00% 18.21% 12/31/2004 20.12% 19.07% 21.93% 14.62% 15.02% 25 0.32% $6,928.70 0.00% 26.46% 12/31/2005 23.07% 21.99% 17.68% 11.60% 11.55% 26 0.84% $10,105.35 0.00% 30.09% 12/31/2006 25.04% 23.95% 26.51% 11.06% 10.23% 27 0.49% $13,514.52 0.00% 31.59% 12/31/2007 19.73% 18.68% 16.13% 12.00% 10.65% 27 0.62% $16,377.91 0.00% 33.45% 12/31/2008 -52.27% -52.73% -45.99% 23.75% 21.13% 24 0.72% $6,906.24 0.00% 26.40% 12/31/2009 46.32% 45.01% 43.60% 26.53% 25.52% 23 0.73% $9,739.15 0.00% 26.58% 12/31/2010 21.19% 20.22% 12.73% 27.77% 27.57% 40 0.77% $14,599.87 0.00% 33.04% 12/31/2011 -13.05% -13.74% -14.31% 20.43% 22.79% 41 0.52% $11,567.14 0.00% 28.08%Disclosures:William Blair Investment Management claims compliance with the Global Investment Performance Standards (GIPS) and has prepared and presented this report in compliance with theGIPS standards. William Blair Investment Management has been independently verified for the periods January 1, 1993 through December 31, 2010. Verification assesses whether (1) thefirm 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 andpresent performance in compliance with the GIPS standards. The International Growth All Cap Growth composite has been examined for the periods presented through December 31,2010. The verification and performance examination reports are available upon request. For purposes of compliance with GIPS, the Firm is defined as all accounts managed by WilliamBlair Investment Management, which is the money management operation of William Blair & Company, LLC. William Blair & Company, L.L.C. is an investment adviser registered with theUnited States Securities and Exchange Commission(“SEC”). Registration with the SEC does not imply a certain level of skill or training.International Growth All Cap Growth invests in a broad range of companies based in developed and emerging markets outside of the United States. The strategy will occasionally includethe use of forward currency contracts to hedge some of the foreign currency exposure which accompanies investment in foreign currency-denominated securities. The benchmark thatbest reflects the composite’s investment strategy is the MSCI All Country World Ex US Investable Market Index (IMI) Net, which is a free float-adjusted market capitalization index that isdesigned to measure equity market performance, net of withholding taxes, in the global developed and emerging markets, excluding the US. For any period shown prior to 1995 thebenchmark return shown is for the MSCI All Country World Ex US Index, because the IMI index returns are not available for these periods. Portfolio and composite returns are calculateddaily. Prior to January 1st, 2009, portfolio returns were calculated monthly using a time-weighted monthly linked return formula with adjustments for cash flows and composites werecalculated monthly by weighting portfolio returns based on beginning of month market value. Valuations and returns are denominated in U.S. Dollars. Accrual accounting is used fordividends. The dividend accruals included in portfolio valuations are net of applicable withholding taxes. Pending withholding tax reclaims are not accrued for in the portfolio valuations.Portfolios must have an initial market value greater than or equal to $1 million to be included in the composite. New accounts are added to the composite at the beginning of the monthfollowing the first full calendar month under management. Prior to July 2007, new accounts were added to the composite at the beginning of the quarter following two full calendarmonths under management. Portfolios that change investment strategies are transferred between composites in the first full monthly period the portfolio is managed under the new style.Portfolios will be excluded from their composite the first month immediately following their last complete month of authorized management by the Firm. For all periods, portfolios areremoved from this composite, in the event of a significant cash flow, for the month during which the flow occurs. Portfolios are typically added back into the composite the followingmonth. A portfolio is determined to have a significant cash flow if the accumulated net external flows of cash and/or securities during a month total more than 25% of the beginning ofmonth portfolio market value. Additional information regarding the treatment of significant cash flows is available upon request. Composite dispersion measures represent theconsistency of a firms composite performance with respect to the individual portfolio returns within a composite. The dispersion of annual returns is measured by the asset-weightedstandard deviation of the returns in the composite. Dispersion includes only those portfolios that have been included in the composite for the entire year. This eliminates any inaccuraciescreated by annualizing partial year returns. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. This statistic is not presented until there are 36 months of performance available. Performance results are stated gross and net of investment advisory fees. Themanagement fee schedule is as follows: Effective January 2010.Up to $20,000,000: 0.80%Next $30,000,000: 0.60%Next $50,000,000: 0.50%Next $50,000,000: 0.45%Next $50,000,000: 0.40%Over $200,000,000: 0.30%The maximum fee is 0.80%.From its inception in 1992 through third quarter of 1996, the International Growth product was sub-advised by Framlington Group plc, a London-based investment firm. In 1996,management of the fund was brought in house. The International Growth Team Composite was created in October, 2001. Prior to July 2002, the only account in the composite was amutual fund. A complete list and description of firm composites is available upon request. Additional information regarding policies for valuing portfolios, calculating performance andpreparing compliant presentations is also available upon request. 54 29853
  • 55. Composite Disclosure –Institutional All Cap Growth Team Total Total Composite Assets Composite Year Gross Net Return R3000G Composite Benchmark Number of End of Percent Non- Assets to Total Ending Asset-Wtd. Asset-Wtd. Benchmark 3-Yr St Dev 3-Yr St Dev Portfolios Dispersion Period(MM) Fee Paying Firm Assets 12/31/2002 -25.50% -26.11% -28.03% 19.55% 25.29% 19 0.32% $233.07 0.00% 1.96% 12/31/2003 24.53% 23.56% 30.97% 18.84% 22.74% 27 0.19% $612.28 0.00% 3.53% 12/31/2004 8.37% 7.57% 6.93% 15.13% 15.66% 27 0.23% $585.69 0.00% 2.24% 12/31/2005 10.99% 10.22% 5.17% 9.66% 9.95% 22 0.13% $548.97 0.00% 1.63% 12/31/2006 13.62% 12.84% 9.46% 8.86% 8.78% 30 0.12% $615.92 0.00% 1.44% 12/31/2007 14.25% 13.46% 11.40% 9.59% 8.88% 40 0.17% $806.77 0.00% 1.65% 12/31/2008 -36.99% -37.45% -38.44% 17.48% 16.68% 37 0.17% $477.75 0.00% 1.83% 12/31/2009 40.56% 39.58% 37.01% 20.46% 20.02% 39 0.36% $766.22 0.00% 2.09% 12/31/2010 15.39% 14.58% 17.64% 22.62% 22.45% 41 0.09% $1,161.72 0.00% 2.63% 12/31/2011 -0.73% -1.42% 2.18% 18.49% 18.17% 44 0.05% $1,760.20 0.00% 4.27%Disclosures:William Blair Investment Management claims compliance with the Global Investment Performance Standards (GIPS) and has prepared and presented this report in compliance with theGIPS standards. William Blair Investment Management has been independently verified for the periods January 1, 1993 through December 31, 2010. Verification assesses whether (1) thefirm 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 andpresent performance in compliance with the GIPS standards. The Institutional All Cap Growth Team composite has been examined for the periods presented through December 31, 2010.The verification and performance examination reports are available upon request. For purposes of compliance with GIPS, the Firm is defined as all accounts managed by William BlairInvestment Management, which is the money management operation of William Blair & Company, LLC. William Blair & Company, L.L.C. is an investment adviser registered with the UnitedStates Securities and Exchange Commission(“SEC”). Registration with the SEC does not imply a certain level of skill or training.For purposes of compliance with GIPS, William Blair has defined the Firm as all accounts managed by the Traditional and Private Wealth Management area within IM. William Blair &Company, L.L.C. is an investment adviser registered with the Securities and Exchange Commission. Institutional All Cap Growth Team invests in a diversified portfolio of small, mid andlarge size companies that demonstrate sustainable growth in sales and earnings. The benchmark that best reflects the composite’s investment style is the Russell 3000 Growth Index,which measures the performance of those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth rates. Portfolio and composite returns are calculateddaily. Prior to January 1st, 2009, portfolio returns were calculated monthly using a time-weighted monthly linked return formula with adjustments for cash flows and composites werecalculated monthly by weighting portfolio returns based on beginning of month market value. Valuations and returns are denominated in U.S. Dollars. Portfolios must have an initialmarket value greater than or equal to $1 million to be included in the composite. New accounts are added to the composite at the beginning of the month following the first full calendarmonth under management. Prior to July 2007, new accounts were added to the composite at the beginning of the quarter following two full calendar months under management.Portfolios will be excluded from their composite the first month immediately following their last complete month of authorized management by the Firm. For all periods, portfolios areremoved from this composite, in the event of a significant cash flow, for the month during which the flow occurs. Portfolios are typically added back into the composite the followingmonth. A portfolio is determined to have a significant cash flow if the accumulated net external flows of cash and/or securities during a month total more than 25% of the beginning ofmonth portfolio market value. Additional information regarding the treatment of significant cash flows is available upon request. Composite dispersion measures represent theconsistency of a firms composite performance with respect to the individual portfolio returns within a composite. The dispersion of annual returns is measured by the asset-weightedstandard deviation of the returns in the composite. Dispersion includes only those portfolios that have been included in the composite for the entire year. This eliminates any inaccuraciescreated by annualizing partial year returns. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. This statistic is not presented until there are 36 months of performance available. Performance results are stated gross and net of investment advisory fees. Themanagement fee schedule is as follows: Effective June 1, 2004.First $10,000,000: 0.70%Next $20,000,000: 0.60%Next $20,000,000: 0.50%Next $50,000,000: 0.45%Next $100,000,000: 0.40%Over $200,000,000: 0.35%The maximum fee is 0.70%.The Institutional All Cap Growth Team composite was created in October, 2001. A complete list and description of firm composites is available upon request. Additional informationregarding policies for valuing portfolios, calculating performance and preparing compliant presentations is also available upon request. 55 29837