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Wells fargo bank

  1. 1. Heritage Growth Equity Third Quarter 2012 www.wellscap.comHeritage U.S. Large Cap Growth Equity represents the Heritage Large Cap Growth Equity strategy within this document.Heritage U.S. Premier Growth Equity represents the Heritage Premier Growth Equity strategy within this document.Heritage U.S. All Cap Growth Equity represents the Heritage All Cap Growth Equity strategy within this document.Wells Capital Management is the trade name of the investment management services provided by certain subsidiaries of Wells Fargo & Company and marketed by WellsFargo Securities International Limited and Wells Capital Management, Inc. Wells Fargo Securities International Limited is authorised and regulated by the U.K. FinancialServices Authority.WELLS CAPITAL MANAGEMENT® is a registered service mark of Wells Capital Management, Inc.
  2. 2. Table of ContentsI. Firm OverviewII. Heritage Growth StrategyIII. Investment ProcessIV. Heritage U.S. Large Cap Growth Equity Portfolio Characteristics & PerformanceV. Heritage U.S. Premier Growth Equity Portfolio Characteristics & PerformanceVI. Heritage U.S. All Cap Growth Equity Portfolio Characteristics & PerformanceVII. AddendumVIII. Supplemental Information Heritage Growth Equity – Third Quarter 2012 2
  3. 3. Firm Overview Heritage Growth Equity – Third Quarter 2012 3
  4. 4. Wells Capital ManagementFocused on three key principles that allow us to exceed our clients’ expectationsWells Capital Management (“WellsCap”) is a Autonomous Investment Teamsleading institutional investment management  Preserve agility and focusfirm with the strength and resources of our  Consistently generate alphaparent, Wells Fargo Bank, N.A.  Have freedom from the distractions of running a businessWe believe skillful, autonomous investment Independent Risk Managementboutiques are successful with the support of  Instills a culture of accountability for performanceindependent risk management.  Facilitates a detailed understanding of portfolio risk  Impels portfolio managers to deliver results consistent with client expectationsWe are committed to delivering superior Dynamic Client Relationshipsinvestment service to our clients with  We listen, inform, and analyzeexpertise in all traditional asset classes.  We customize solutions as appropriate  We are consultative to meet clients’ evolving needs Heritage Growth Equity – Third Quarter 2012 4
  5. 5. Breadth of Investment Management ExpertiseWellsCap Assets Under ManagementAs at 30 September 2012 – Diversified Client and Asset Base in excess of USD 331BBy Sector1 AUM (USD B) Equity 65 U.S. Equity U.S. Fixed Income2 Fixed Income2 66 (27%) (30%) Short Duration3 59 Non-U.S. Equity Non-U.S. Fixed Income2 (6%) (4%) Blend 5 Short Duration3 Blend (30%) (3%)By Client Type1 AUM (USD B) Assets (%)Corporate 52 26Foundation/Endowment/Non-Profit 10 5Public/Government 16 8Sovereign Wealth Fund/Central Bank 5 3Union 2 1Sub-Advisory4 105 54Other 5 3 1 Total firm assets under management are in excess of USD 331B. The charts above exclude USD 136B in Money Market Mutual Funds and other Wells Fargo Affiliated Money Market Accounts. Assets under management, excluding Money Market Mutual Funds and other Wells Fargo Affiliated Money Market accounts total USD 195B. 2 Includes accounts with durations over 1-5 year benchmarks. 3 Includes accounts with durations up to 1-5 year benchmarks, excluding Money Market Funds. 4 Sub-Advisory consists of USD 81B in long-term funds sub-advised for Wells Fargo and USD 24B in external sub-advisory funds. Heritage Growth Equity – Third Quarter 2012 5
  6. 6. Heritage Growth EquityAs of September 30, 2012 Assets Under Management Amount ($M) Heritage Large Cap Growth Equity 1,770.8 Heritage Premier Growth Equity 2,492.2 Heritage All Cap Growth Equity 12,687.5 Heritage Small Cap Growth Equity 1,651.2 Total $18,601.7 Representative Client List*  Baptist Health Care Corporation Endowments and Foundations  Miami Childrens Hospital  City of Fort Walton Beach General Pension  Missouri Local Government Employees Retirement System  City of Pinellas Park Police Officers Pension Fund  Orlando Utilities Commission  Congregation of St. Joseph Foundation  Pensacola Police Pension Plan  Edyth Bush Charitable Foundation  Plumbers and Fitters Local 101 Pension and Supplemental Plan  Ft. Myers Firefighters’ Pension Plan  Plumbers, Steamfitters, and Apprentices Local 206 Pension Plan  Ft. Myers General Employees’ Pension Plan  Public Service Company of New Mexico  Gundersen Lutheran Administrative Services  Sibley Memorial Hospital  Gundersen Lutheran Medical Foundation  Southeastern Pennsylvania Transportation Authority Pension Plan  International Council For Shopping Centers  St. Procopius Abbey Foundation  Kennametal  Stetson University  Kissimmee Utility Authority Employees Retirement Plan  Swedish American Hospital  Life Technologies  The Lynde and Harry Bradley Foundation  London Steam-Ship Owners  The Police Retirement System of St. Louis  Marquette University Educational Endowment  Tower Automotive  McAllen Firemen’s Relief and Retirement Plan  Westminster Retirement Communities Foundation *As of September 30, 2012. The companies listed herein are representative of Wells Capital Management’s Heritage Growth Equity clients. Only clients within this Composite who gave us permission to do so are included on this list. Neither performance data nor account size was used as a means of selecting their inclusion. The use of their names does not constitute an endorsement of our products or services. Heritage Growth Equity – Third Quarter 2012 6
  7. 7. Heritage Growth Strategy Heritage Growth Equity – Third Quarter 2012 7
  8. 8. Heritage Growth EquityDistinguishing Characteristics 30-year history with investment philosophy and process A nimble team dedicated to “pure growth” Informational advantage from all cap research expertise Successful sell discipline highlighting integration of risk management with investment process Heritage Growth Equity – Third Quarter 2012 8
  9. 9. Heritage Growth TeamPortfolio Thomas Ognar, CFA Peter Birmingham Trading Karen Winston Jim MirsbergerManagement, Senior Portfolio Manager Senior Research Analyst Trader Trader Health Care, Technology, Consumer Consumer, Energy, TransportationResearch, andImplementation Bruce Olson, CFA Robert Gruendyke, CFA Relationship Douglas Basile Kevin Gaughan, CFA Senior Portfolio Manager Senior Research Analyst Management Associate Portfolio Specialist Senior Portfolio Specialist Consumer, Financials, Energy Technology, Financials, Health Care Donna Lelinski Brian Mulligan, CFA Joseph Eberhardy, CFA David Nazaret Research Associate Senior Relationship Manager Portfolio Manager Senior Research Analyst Health Care, Industrials, Materials Technology, Health Care Thomas Galfano Senior Relationship Manager John Krueger, CFA John Svolos Senior Portfolio Specialist Senior Research Analyst Joseph Conroy, CFA Technology Senior Relationship Manager Brandon Oak Research Analyst Industrials  Consistency  Key decision makers average over 18 years of experience  Track record since 1994  Communication  Streamlined and frictionless environment  Dual research coverage on all holdings  Focus  1 strategy – growth that is Robust, Sustainable, and Underappreciated Note: CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. Heritage Growth Equity – Third Quarter 2012 9
  10. 10. Investment PhilosophyWe believe The best investments exhibit both robust and sustainable growth Opportunities arise when a “Gap” exists between a company’s future growth and market expectations for that growth A dedicated, decisive team is critical to managing risk when that “Gap” changes BUY REGION SELL/AVOID REGION BUY REGION Phase III: Growth Expectations Too High Phase II: Growth Expectations Rise Phase IV: Growth But Still Too Low Growth Trap: Expectations Fall Price Deceleration/ Decline Phase I: Growth Growth Early Stage Expectations Opportunity: Growth: Too Low Sustainability/ Acceleration True Earnings Power Reacceleration Consensus Expectations Time Heritage Growth Equity – Third Quarter 2012 10
  11. 11. Investment Process Heritage Growth Equity – Third Quarter 2012 11
  12. 12. Investment Process OverviewWe Are Rigid About Our Discipline… All Cap Research Underappreciated Heritage Growth Equity – Third Quarter 2012 12
  13. 13. Investment ProcessIdea Generation All CapCompanies are identified for research from a variety of sources Research UnderappreciatedProprietary Quantitative Model and Screens Qualitative Sources Minimum growth requirements based on market  Senior management contacts cap, industry, and sustainability  Suppliers and distributors Revenue/earnings growth acceleration  Customers Positive revenue/earnings surprises and revisions  Competitors Margin expansion  Industry experts Estimate dispersion  Industry and research conferences Heritage Growth Equity – Third Quarter 2012 13
  14. 14. Investment ProcessAll Cap Research All CapIs growth robust and sustainable? Research Underappreciated Senior Suppliers/ Industry Management Distributors Customers Competitors Experts Is growth robust? Quantitative Potential Investment Analysis Is growth sustainable? Assessment Assessment Assessment Assessment Assessment of of Business of Competitive of Capital of Cash Flow Earnings Power Model Advantages Structure Heritage Growth Equity – Third Quarter 2012 14
  15. 15. Investment ProcessAll Cap Research All CapIs growth underappreciated? Research Underappreciated Valuation analysis interpolates the market’s expectation for growth Valuation to growth comparison utilizes a basket of metrics relative to history, benchmark, and peers:  EV/EBITDA  Dividend yield  Price/Earnings  Earnings yield  Price/Book  Cash flow yield  Price/Sales  PEG ratio Internal estimate of growth is compared to:  Buy side expectations  Sell side expectations  Management expectations Assessment of business model relative to similar business models or market share leaders Heritage Growth Equity – Third Quarter 2012 15
  16. 16. Investment ProcessPortfolio Construction All CapBuy Discipline Research UnderappreciatedIn order to invest in a company, growth must be: Robust Sustainable UnderappreciatedPortfolio Construction Guidelines Heritage All Cap Growth, Heritage Small Cap Growth, and Heritage Premier Growth typically own 80-100 securities; Heritage Large Cap Growth typically owns 70-90 securities Individual positions are limited to 7% at market value Top 10 holdings typically 25-30% of portfolio Sector weights limited to 0.5x-2.0x benchmark weight for three traditional growth sectors Sector weights limited to 0.0x-5.0x benchmark weight for all other sectors Heritage Growth Equity – Third Quarter 2012 16
  17. 17. Investment ProcessPortfolio Construction All CapSell Discipline Research UnderappreciatedThe following chart, which depicts relative returns generated by stocks in the six months afterthey were sold from the portfolio, is a proof statement that our sell discipline helps capturealpha for our clients. Heritage U.S. Large Cap Heritage U.S. Premier Heritage U.S. All Cap Growth Heritage Small Cap Growth Growth Equity Post-Sale Growth Equity Post-Sale Equity Post-Sale Relative Equity Post-Sale Relative Relative Return1 Relative Return1 Return2 Return3Stocks sold in 2005 -3.1% -0.4% -1.0% -8.2%Stocks sold in 2006 -0.8% -3.5% -4.7% -1.1%Stocks sold in 2007 -7.0% -5.8% -8.3% -11.7%Stocks sold in 2008 3.4% -2.1% -4.0% -8.2%Stocks sold in 2009 -2.9% -6.2% -7.3% -4.8%Stocks sold in 2010 -5.5% -6.2% -6.5% -9.1%Stocks sold in 2011 -7.2% -4.1% -4.7% 2.6%Average -3.3% -4.0% -5.2% -5.8% We sell or trim a company  When the “Gap” between a company’s true earnings power and market expectations narrows  To avoid deteriorating growth before it’s captured in the stock price  To manage portfolio risk 1Based on the median six month post sale excess return of stocks relative to the Russell 1000 Growth Index for positions completely sold from the portfolio. 2Based on the median six month post sale excess return of stocks relative to the Russell 3000 Growth Index for positions completely sold from the portfolio. 3Based on the median six month post sale excess return of stocks relative to the Russell 2000 Growth Index for positions completely sold from the portfolio. Heritage Growth Equity – Third Quarter 2012 17
  18. 18. Investment ProcessRisk Management All CapAn integrated approach to risk incorporates monitoring at team level Research Underappreciatedand firm level Investment Team Risk Management Team  Continuously stress test all assumptions  Weekly and monthly risk reports  Monitor the “Gap”  Risk-adjusted return analysis  Performance attribution  Quantitatively screen the portfolio to combat human biases  Style analysis  Sell or trim according to Sell Discipline  Custom analytics at team’s request  Focus on the sustainability of growth  Standing quarterly reviews with Risk Management Team and with Office of CIO Heritage Growth Equity – Third Quarter 2012 18
  19. 19. Heritage Growth EquitySummary 30-year history with investment philosophy and process A nimble team dedicated to “pure growth” Informational advantage from all cap research expertise Successful sell discipline highlighting integration of risk management with investment process Heritage Growth Equity – Third Quarter 2012 19
  20. 20. Heritage U.S. Large Cap Growth Equity PortfolioCharacteristics & Performance Heritage Growth Equity – Third Quarter 2012 20
  21. 21. Heritage U.S. Large Cap Growth EquityPortfolio Characteristics – As of September 30, 2012Top Ten Equity Holdings1 Characteristics Portfolio* Russell 1000Company Market Cap ($B) Weight (%) Portfolio Characteristics Portfolio* Growth IndexApple Inc. 625.3 8.9 Weighted Median Market Cap ($B) 30.8 47.1Google Inc. 246.7 3.9 Weighted Average Market Cap ($B) 98.8 112.8Alexion Pharmaceuticals Inc. 22.1 3.2 Portfolio P/E-I/B/E/S 1-Year Forecast 18.8 15.5QUALCOMM Inc. 107.0 3.0 Long-Term Growth Forecast – I/B/E/S Median (%) 17.2 13.9eBay Inc. 62.3 2.8 Return on Equity – 5-Year Average 24.6 23.7Cognizant Technology Solutions Corp. 20.9 2.6 Number of Holdings 76 567MasterCard Inc. 56.4 2.5 Turnover (%) 44Whole Foods Market Inc. 18.0 2.3Dollar Tree Inc. 11.1 2.1Union Pacific Corp. 56.2 2.0Total 33.2Sector Distribution *This information is based on a representative account within the Heritage U.S. Large Cap Growth Equity Composite. The representative account has been selected by meeting the following criteria: 1) the account is in the Heritage U.S. Large Cap Growth Equity Composite, 2) Wells Capital Management represents that the holdings, characteristics and risk profile are representative of the strategy/style of the Heritage U.S. Large Cap Growth Equity Composite. Any changes to the representative account must be approved by the director of investment risk management. 1Top ten holdings are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. Past performance is not indicative of future results. A list of all holdings from the prior one-year period is available upon request. Source: Bank of New York Mellon Corporation and FactSet Heritage Growth Equity – Third Quarter 2012 21
  22. 22. Heritage U.S. Large Cap Growth Equity Up Market and Down Market Capture January 1995 – September 2012 (Single Computation)Upside / DownsideJanuary 1995 - September 2012 (Single Computation) 106 104 102 Upside% Upside% Heritage Large Cap Growth (gross) 100 Heritage Large Cap Growth (net) Russell 1000 Growth 98 96 94 94 96 98 100 102 104 106 Downside% Downside%January 1995 - September 2012: Summary Statistics Batting Up Down Alpha Beta R-Squared Sharpe vs. Average Capture Capture Down Capture vs. vs.Alpha vs. Beta Sharpe Batting Average Up Capture vs. R-Squared Ratio vs. vs. vs. Market Market Market Market Ratio vs. Market vs. Market vs. Market Market vs. Market Market Market Market Heritage U.S. Large Cap Growth – Gross 3.5% 0.96 0.4 59.2% 105.4% 94.3% 77.5%Heritage Large Cap Growth (gross) 3.5 0.96 0.4 59.2 105.4 94.3 77.5 Heritage U.S. Large Cap Growth – Net 2.7% 0.96 0.4 56.3% 103.4% 95.3% 77.6% Russell 1000 Growth Index 0.0% 1.00 0.3 0.0% 100.0% 100.0% 100.0%Heritage Large Cap Growth (net) 2.7 0.96 0.4 56.3 103.4 95.4 77.6Russell 1000 Growth Manager Databases via Zephyr Style Advisor 0.0 1.00 0.3 0.0 100.0 100.0 100.0 Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 22
  23. 23. Heritage U.S. Large Cap Growth EquityAnnualized Performance Peer Universe RankingsAs of September 30, 2012 Heritage U.S. Large Cap Growth Equity – Gross Source: eVestment Alliance Large Cap Growth Universe. All returns greater than one year are annualized. Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 23
  24. 24. Heritage U.S. Premier Growth Equity PortfolioCharacteristics & Performance Heritage Growth Equity – Third Quarter 2012 24
  25. 25. Heritage U.S. Premier Growth EquityPortfolio Characteristics – As of September 30, 2012Top Ten Equity Holdings1 Characteristics Portfolio* Russell 1000Company Market Cap ($B) Weight (%) Portfolio Characteristics Portfolio* Growth IndexApple Inc. 625.3 8.9 Weighted Median Market Cap ($B) 21.3 47.1Google Inc. 246.7 4.0 Weighted Average Market Cap ($B) 92.1 112.8eBay Inc. 62.3 3.3 Portfolio P/E-I/B/E/S 1-Year Forecast 18.6 15.5Cognizant Technology Solutions Corp. 20.9 3.3 Long-Term Growth Forecast – I/B/E/S Median (%) 17.8 13.9Alexion Pharmaceuticals Inc. 22.1 3.2 Return on Equity – 5-Year Average 23.5 23.7Kansas City Southern 8.3 2.8 Number of Holdings 84 567Whole Foods Market Inc. 18.0 2.4 Turnover (%) 47Tractor Supply Co. 7.0 2.3Dollar Tree Inc. 11.1 2.2EMC Corp. 57.2 2.1Total 34.4Sector Distribution *This information is based on a representative account within the Heritage U.S. Premier Growth Equity Composite. The representative account has been selected by meeting the following criteria: 1) the account is in the Heritage U.S. Premier Growth Equity Composite, 2) Wells Capital Management represents that the holdings, characteristics and risk profile are representative of the strategy/style of the Heritage U.S. Premier Growth Equity Composite. Any changes to the representative account must be approved by the director of investment risk management. 1Top ten holdings are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. Past performance is not indicative of future results. A list of all holdings from the prior one-year period is available upon request. Source: Bank of New York Mellon Corporation and FactSet Heritage Growth Equity – Third Quarter 2012 25
  26. 26. Heritage U.S. Premier Growth Equity Up Market and Down Market Capture June 1999 – September 2012 (Single Computation)Upside / DownsideJune 1999 - September 2012 (Single Computation) 120 115 110 105 Upside% Upside% Heritage Premier Growth (Gross) 100 Heritage Premier Growth (Net) Russell 1000 Growth 95 90 85 80 80 85 90 95 100 105 110 115 120 Downside% Downside%June 1999 - September 2012: Summary Statistics Batting Up Down Alpha Beta R-Squared Sharpe Average Capture Capture vs. vs. Alpha vs. BetaRatio vs. Sharpe vs. Batting Average vs. Up Capture Down Capture R-Squared vs. vs. Market Market Market Market Market Market Ratio Market vs. Market Market vs. Market vs. Market vs. MarketHeritage Heritage U.S. (Gross) Premier Growth Premier Growth – Gross 6.1 6.1% 0.93 0.93 0.3 0.361.3 61.3% 115.3 115.3% 91.7 91.7% 83.1 83.1% Heritage U.S. Premier Growth – Net 5.3% 0.93 0.2 60.0% 113.3% 92.9% 83.1%Heritage Russell GrowthGrowth Premier 1000 (Net) Index 5.3 0.0% 0.93 1.00 0.2 -0.160.0 0.0% 113.3 100.0% 92.9 100.0% 83.1 100.0%Russell 1000 Growth Manager Databases via Zephyr Style Advisor -0.1 0.0 1.0 0.0 100.0 100.0 100.0 Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 26
  27. 27. Heritage U.S. Premier Growth EquityAnnualized Performance Peer Universe RankingsAs of September 30, 2012 Heritage U.S. Premier Growth – Gross Source: eVestment Alliance Large Cap Growth Universe. All returns greater than one year are annualized. Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 27
  28. 28. Heritage U.S. All Cap Growth Equity PortfolioCharacteristics & Performance Heritage Growth Equity – Third Quarter 2012 28
  29. 29. Heritage U.S. All Cap Growth EquityPortfolio Characteristics – As of September 30, 2012Top Ten Equity Holdings1 Characteristics Market Portfolio* Russell 3000Company Cap ($B) Weight (%) Portfolio Characteristics Portfolio* Growth IndexApple Inc. 625.3 8.5 Weighted Median Market Cap ($B) 12.8 47.1Google Inc. 246.7 3.5 Weighted Average Market Cap ($B) 81.3 112.8Alexion Pharmaceuticals Inc. 22.1 3.4 Portfolio P/E-I/B/E/S 1-Year Forecast 20.4 15.5eBay Inc. 62.3 3.3 Long-Term Growth Forecast – I/B/E/S Median (%) 19.1 13.9Cognizant Technology Solutions Corp. 20.9 3.1 Return on Equity – 5-Year Average 22.5 23.7Kansas City Southern 8.3 2.8 Number of Holdings 95 1,679Tractor Supply Co. 7.0 2.4 Turnover (%) 48Whole Foods Market Inc. 18.0 2.3Rackspace Hosting Inc. 9.0 2.3Ulta Salon Cosmetics & Fragrance Inc. 6.1 2.1Total 33.7Sector Distribution *This information is based on a representative account within the Heritage U.S. All Cap Growth Equity Composite. The representative account has been selected by meeting the following criteria: 1) the account is in the Heritage U.S. All Cap Growth Equity Composite, 2) Wells Capital Management represents that the holdings, characteristics and risk profile are representative of the strategy/style of the Heritage U.S. All Cap Growth Equity Composite. Any changes to the representative account must be approved by the director of investment risk management. 1Top ten holdings are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. Past performance is not indicative of future results. A list of all holdings from the prior one-year period is available upon request. Source: Bank of New York Mellon Corporation and FactSet Heritage Growth Equity – Third Quarter 2012 29
  30. 30. Heritage U.S. All Cap Growth Equity Up Market and Down Market Capture June 1999 – September 2012 (Single Computation)Upside / DownsideJune 1999 - September 2012 (Single Computation) 140 130 120 Upside% 110 Upside% Heritage All Cap Growth (gross) 100 Heritage All Cap Growth (net) Russell 3000 Growth 90 80 70 60 60 70 80 90 100 110 120 130 140 Downside%June 1999 - September 2012: Summary Statistics Downside% Batting Up Down Alpha Beta R-Squared Sharpe Average Capture Capture vs. vs. vs. Ratio vs. vs. vs. Market Market Alpha vs. Beta vs. Sharpe Batting Average Up Capture DownMarket Capture R-Squared Market Market Market Market Market Ratio vs. Market vs. Market vs. Market vs. Market Heritage U.S. AllHeritage All Cap Growth (gross) Cap Growth – Gross 8.8% 1.01 8.8% 0.4 1.01 0.4 66.9% 66.9% 130.4% 130.4% 93.5% 93.5% 83.0% 83.0% Heritage U.S. All Cap Growth – Net 7.9% 1.01 0.3 64.4% 128.1% 94.7% 83.0%Heritage All Cap Growth (net) Russell 3000 7.9% Growth Index 1.01 0.0% 0.3 1.00 64.4% 0.0 128.1% 0.0% 94.7% 100.0% 83.0% 100.0% 100.0%Russell 3000 Growth 0.0% 1.00 -0.0 0.0% 100.0% 100.0% 100.0% Manager Databases via Zephyr Style Advisor Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 30
  31. 31. Heritage U.S. All Cap Growth EquityAnnualized Performance Peer Universe RankingsAs of September 30, 2012 Heritage U.S. All Cap Growth Equity – Gross Source: eVestment Alliance All Cap Growth Universe. All returns greater than one year are annualized. Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 31
  32. 32. Addendum Heritage Growth Equity – Third Quarter 2012 32
  33. 33. Heritage Growth Team Biographies Thomas C. Ognar, CFA Managing Director and Senior Portfolio Manager Thomas Ognar is a managing director and senior portfolio manager for the Heritage Growth Equity team at Wells Capital Management. Tom has oversight and portfolio management responsibility for the team’s Small Capitalization, All Capitalization and Large Capitalization Growth portfolios. He joined Wells Capital Management with the acquisition of assets from Strong Capital Management. Tom entered the investment industry in 1993 and joined Strong in 1998 as a research analyst. Prior to Strong, he was a research analyst with M&I Investment Management, Inc. and a trader with Republic Securities, Inc. Tom earned a bachelor’s degree in finance from Miami University. He earned a master’s degree in finance from the University of Wisconsin, Madison, and is an alumnus of the Applied Security Analysis Program. Tom has earned the right to use the CFA designation. Bruce C. Olson, CFA Managing Director and Senior Portfolio Manager Bruce Olson is a managing director and senior portfolio manager for the Heritage Growth Equity team at Wells Capital Management. He joined Wells Capital Management from Strong Capital Management where he held a similar position. Bruce entered the investment industry in 1982 and prior to joining Strong in 1994, he served as a managing partner of a private holding company. Previously, he was employed with Minton Investment Corporation, American National Bank and Trust of Chicago, and the Travelers Corporation. Bruce earned a bachelor’s degree from Gustavus Adolphus College. He has earned the right to use the CFA designation. Joseph M. Eberhardy, CFA Portfolio Manager Joseph Eberhardy is a portfolio manager for the Heritage Growth Equity team at Wells Capital Management. Joe joined Wells Capital Management from Strong Capital Management, having joined Strong in 1994. Prior to his current role, Joe was a senior research analyst with the Heritage Growth Equity team. Before joining the Heritage Growth Equity team in 2000, his previous roles at Strong Capital Management included small to mid cap equity analyst, high yield bond trader and fixed income accounting manager. Joe earned a bachelors degree in accounting from the University of Wisconsin, Milwaukee. He is a Certified Public Accountant and has earned the right to use the CFA designation. Note: CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. Heritage Growth Equity – Third Quarter 2012 33
  34. 34. Heritage Growth Team Biographies (continued) John Krueger, CFA Senior Portfolio Specialist John Krueger is a senior portfolio specialist for the Heritage Growth Equity team at Wells Capital Management. John joined Wells Capital Management in 2010 from Cleary Gull where he was the Director of Portfolio Management. He was responsible for developing, implementing, and then communicating investment strategies for foundations, endowments, and high net worth individuals. Prior to joining Cleary in 1998, he was a portfolio manager for M&I Corporation. There, he conducted money manager due diligence and managed foundations, endowments, and high net worth portfolios. He also served as an equity trader and a senior auditor while at M&I. John earned his bachelor’s degree in finance from the University of Wisconsin, Whitewater and an MBA from the University of Chicago. He is a member of the Investment Analyst Society of Milwaukee. John has earned the right to use the CFA designation. Peter Birmingham Senior Research Analyst Peter Birmingham is a senior research analyst for the Heritage Growth Equity team at Wells Capital Management. He covers the consumer, energy, and transportation sectors. Before joining WellsCap in 2008, Peter served as vice president for Wells Fargo Funds Management. Prior to that, he served as vice president of institutional equity sales for Morgan Stanley. Peter began his investment industry career in 1992 as first vice president for Robert W. Baird & Co. He earned a bachelor’s degree in finance, investments and banking from the University of Wisconsin, Madison, and a master’s degree in accounting from the University of Wisconsin, Milwaukee. Peter has completed Level I of the CFA Program. Robert Gruendyke, CFA Senior Research Analyst Robert Gruendyke is a senior research analyst for the Heritage Growth Equity team at Wells Capital Management, covering the technology, financial, and health care sectors. Before joining WellsCap in 2008, Bob served as a senior research associate, and earlier, as a senior compliance adviser, for Raymond James Financial. Prior to that, he served as a financial consultant for AG Edwards and Sons, where he began his investment industry career in 1999. He earned a bachelor’s degree in economics and history from Duke University. Bob has earned the right to use the CFA designation. David Nazaret Senior Research Analyst David Nazaret is a senior research analyst for the Heritage Growth Equity team at Wells Capital Management, covering the technology, and health care sectors. David began his investment industry career in 2000. Previously, he was a senior research associate at Raymond James. He has earned a bachelor’s degree in economics from Vanderbilt University in Nashville, TN. David has completed Level II of the CFA Program. Heritage Growth Equity – Third Quarter 2012 34
  35. 35. Heritage Growth Team Biographies (continued) John Svolos Senior Research Analyst John Svolos is a senior research analyst for the Heritage Growth Equity team at Wells Capital Management covering the technology sector, specifically the semiconductor, hardware, networking, and internet industries. John entered the investment industry at Merrill Lynch in 1997, providing research sales coverage to investment managers across the Midwest. Starting in 1998, John narrowed his focus to become a technology sector specialist. He developed an integrated view of the global technology supply chain, meeting with technology corporate managements and touring global manufacturing operations in Canada, Mexico, Taiwan, China, Hong Kong, and the United States. John joined Credit Agricole Securities in 2009 where he expanded his focus to the growing consumer end markets of Asia. He earned a bachelor’s degree in economics from Northwestern University and a juris doctorate from Harvard Law School. John is a candidate for Level III of the CFA program. Brandon Oak Research Analyst Brandon Oak is a research analyst for the Heritage Growth Equity team at Wells Capital Management, co-covering the industrial sector with Joseph Eberhardy. Before joining WellsCap in 2011, he served as a senior investment performance analyst at Cambridge Associates, LLC. Brandon earned bachelors’ degrees in economics and mathematics from Vanderbilt University and an MBA from the Kelley School of Business at Indiana University. Brandon has completed Level I of the CFA Program. Karen Winston Trader Karen Winston is a trader on the Heritage Growth Equity team at Wells Capital Management. She joined Wells Capital Management from Strong Capital Management where she held a similar role, having joined Strong in 1989. Karen earned an associate degree in business from Stratton College in Milwaukee. James Mirsberger Trader James Mirsberger is a trader for the Heritage Growth Equity team at Wells Capital Management. He joined Wells Capital Management from Strong Capital Management where he held a similar role. Jim joined Strong in 1992 as a mutual fund accountant and became a trader in 1993. He earned bachelors degrees in finance and marketing from the University of Wisconsin, Madison and a masters degree in business administration from Marquette University. Heritage Growth Equity – Third Quarter 2012 35
  36. 36. Heritage Growth Team Biographies (continued) Douglas Basile Associate Portfolio Specialist Douglas Basile is an associate portfolio specialist for the Heritage Growth Equity team at Wells Capital Management. Doug joined WellsCap in 2012 from Wells Fargo Funds Distributor where he was an internal wholesaler in the Northern California independent channel. Prior to working at Wells Fargo, Doug served as an options market maker and member of the Chicago Board Options Exchange for Timber Hill for nine years. He has been in the investment industry since 1996. He earned a bachelor’s degree in history from West Virginia Wesleyan College and a master’s degree in business administration from Elmhurst College. Donna Lelinski Research Associate Donna Lelinski is a research associate with the Heritage Growth Equity team at Wells Capital Management. She is responsible for day-to- day coordination and all administrative duties for the Heritage team. Donna joined WellsCap from Strong Capital Management, where she served in a similar role since 1999. Earlier in her career, she served as a compliance associate and a research associate at Strong. Brian Mulligan, CFA Senior Relationship Manager Brian Mulligan is a senior relationship manager at Wells Capital Management. Brian also leads a team of client service relationship managers who service a variety of investment products, including value, emerging markets, and small growth. Previously, he managed private client assets, trusts, pension/retirement, and foundation portfolios. He began his investment industry career in 1981 as a portfolio assistant at Crocker Bank, which was later acquired by Wells Fargo. Brian earned a bachelor’s degree in business management from Skidmore College, Saratoga Springs, New York. He has earned the right to use the CFA designation and is a member of CFA Institute and the Security Analysts of San Francisco. Thomas Galfano Senior Relationship Manager Thomas Galfano is a senior relationship manager for institutional relationships at Wells Capital Management. He joined Wells Capital Management from Strong Capital Management where he held a similar role. Tom joined Strong in 1996 and became a part of Strongs institutional team in 2002. Prior to this, Tom was an associate in Strongs technology group. Tom began his career at The Swiss Colony, Inc., followed by three years at the Medical College of Wisconsin in the technology area. He earned his bachelor’s degree in communications from the University of Wisconsin, Madison and a master’s degree in business administration from Marquette University in Milwaukee, Wisconsin. Heritage Growth Equity – Third Quarter 2012 36
  37. 37. Heritage Growth Team Biographies (continued) Joseph Conroy, CFA Senior Relationship Manager Joseph Conroy is a senior relationship manager on the Equity Management team at Wells Capital Management. He joined WellsCap from Evergreen Investments, where he served as a relationship manager since 2000. His most recent Evergreen experience includes serving as a relationship manager for multiple investment strategies for a wide range of clients, including pensions, endowments, foundations, and not for profit entities. Prior to joining Evergreen, he served as a portfolio/client relationship manager at Wilmington Trust. Earlier, Joe served in the Treasury department at Catholic Health Initiatives. Joe began his career at Mellon Bank, N.A. He earned a bachelor’s degree in finance with a concentration in accounting from LaSalle University in Philadelphia. Joe has earned the right to use the CFA designation and is a member of the CFA Society of Philadelphia. Kevin Gaughan, CFA Managing Director and Senior Portfolio Specialist Kevin Gaughan is a managing director and senior portfolio specialist for the Heritage Growth Equity and Core Equity teams at Wells Capital Management, with specific responsibility in economic and sector research. Kevin joined Wells Capital Management from Strong Capital Management with more than 25 years of experience in the investment industry. While at Strong, he developed and managed many of the firms largest client relationships and served as a key member of the firms risk management and investment product committees. Prior to joining Strong in 1990, Kevin was a partner at the institutional investment management firm, Brinson Partners, Inc. Kevin earned a bachelors degree in finance and a masters degree in business administration from DePaul University. He is a member of the Investment Analysts Society of Chicago. Kevin has earned the right to use the CFA designation. Heritage Growth Equity – Third Quarter 2012 37
  38. 38. Separate Account Investment Management FeesHeritage U.S. Large Cap Growth Heritage U.S. All Cap Growth First $25 million 0.75% First $25 Million 0.85% Next $25 million 0.65% Next $25 Million 0.75% Next $50 million 0.50% Next $50 Million 0.70% Over $100 million 0.40% Over $100 Million 0.65% Minimum Annual Fee $75,000 Minimum Annual Fee $85,000Heritage U.S. Premier Growth First $25 Million 0.75% Next $25 Million 0.65% Next $50 Million 0.60% Over $100 Million 0.55% Minimum Annual Fee $75,000 Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 38
  39. 39. Supplemental Information Heritage Growth Equity – Third Quarter 2012 39
  40. 40. Heritage U.S. Large Cap Growth EquityPortfolio Characteristics – As of September 30, 2012Top Ten Equity Holdings1 Characteristics Portfolio*Company Market Cap ($B) Weight (%) Portfolio Characteristics Portfolio* S&P 5002Apple Inc. 625.3 8.9 Weighted Median Market Cap ($B) 30.8 57.5Google Inc. 246.7 3.9 Weighted Average Market Cap ($B) 98.8 122.1Alexion Pharmaceuticals Inc. 22.1 3.2 Portfolio P/E-I/B/E/S 1-Year Forecast 18.8 13.3QUALCOMM Inc. 107.0 3.0 Long-Term Growth Forecast – I/B/E/S Median (%) 17.2 10.7eBay Inc. 62.3 2.8 Return on Equity – 5-Year Average 24.6 19.3Cognizant Technology Solutions Corp. 20.9 2.6 Number of Holdings 76 500MasterCard Inc. 56.4 2.5 Turnover (%) 44Whole Foods Market Inc. 18.0 2.3Dollar Tree Inc. 11.1 2.1Union Pacific Corp. 56.2 2.0Total 33.2Sector Distribution 2 *This information is based on a representative account within the Heritage U.S. Large Cap Growth Equity Composite. The representative account has been selected by meeting the following criteria: 1) the account is in the Heritage U.S. Large Cap Growth Equity Composite, 2) Wells Capital Management represents that the holdings, characteristics and risk profile are representative of the strategy/style of the Heritage U.S. Large Cap Growth Equity Composite. Any changes to the representative account must be approved by the director of investment risk management. 1Top ten holdings are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. Past performance is not indicative of future results. A list of all holdings from the prior one-year period is available upon request. 2S&P 500 is for illustrative purposes only. Source: Bank of New York Mellon Corporation and FactSet Heritage Growth Equity – Third Quarter 2012 40
  41. 41. Heritage U.S. Large Cap Growth Equity Up Market and Down Market Capture January 1995 – June 2012 (Single Computation)Upside / DownsideJanuary 1995 - September 2012 (Single Computation) 110 105 Upside% Upside% 100 Heritage Large Cap Growth (gross) Heritage Large Cap Growth (net) S&P 500 95 90 85 85 90 95 100 105 110 Downside%January 1995 - September 2012: Summary Statistics Downside% Batting Up Down Alpha Beta R-Squared Sharpe Average Capture Capture vs. vs. vs. Ratio vs. vs. Batting vs. Down Market Market Market Market Market Market Alpha vs. Beta vs. Sharpe Average Up Capture Capture vs. R-Squared Market Market Ratio vs. Market vs. Market Market vs. MarketHeritage Large Cap Growth (gross) 2.7 1.00 0.4 56.3 110.5 100.9 63.6 Heritage U.S. Large Cap Growth – Gross 2.7% 1.00 0.4 56.6% 110.5% 100.9% 63.6% Heritage U.S. Large Cap Growth – Net 1.9% 1.00 0.4 55.9% 108.2% 102.2% 63.6%Heritage Large Cap Growth (net) 1.9 1.00 0.4 55.9 108.2 102.2 63.6 S&P 500* 0.0% 1.00 0.4 0.0% 100.0% 100.0% 100.0% *S&P 500 is for illustrative purposes only.S&P 500 0.0 1.0 0.4 0.0 100.0 100.0 100.0 Manager Databases via Zephyr Style Advisor Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 41
  42. 42. Heritage U.S. Large Cap Growth EquityAnnualized Performance Peer Universe RankingsAs of September 30, 2012 Heritage U.S. Large Cap Growth Equity – Gross S&P 500* *S&P 500 is for illustrative purposes only. Source: eVestment Alliance Large Cap Growth Universe. All returns greater than one year are annualized. Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 42
  43. 43. Heritage U.S. Premier Growth EquityPortfolio Characteristics – As of September 30, 2012Top Ten Equity Holdings1 Characteristics Portfolio*Company Market Cap ($B) Weight (%) Portfolio Characteristics Portfolio* S&P 5002Apple Inc. 625.3 8.9 Weighted Median Market Cap ($B) 21.3 57.5Google Inc. 246.7 4.0 Weighted Average Market Cap ($B) 92.1 122.1eBay Inc. 62.3 3.3 Portfolio P/E-I/B/E/S 1-Year Forecast 18.6 13.3Cognizant Technology Solutions Corp. 20.9 3.3 Long-Term Growth Forecast – I/B/E/S Median (%) 17.8 10.7Alexion Pharmaceuticals Inc. 22.1 3.2 Return on Equity – 5-Year Average 23.5 19.3Kansas City Southern 8.3 2.8 Number of Holdings 84 500Whole Foods Market Inc. 18.0 2.4 Turnover (%) 47Tractor Supply Co. 7.0 2.3Dollar Tree Inc. 11.1 2.2EMC Corp. 57.2 2.1Total 34.4Sector Distribution 2 *This information is based on a representative account within the Heritage U.S. Premier Growth Equity Composite. The representative account has been selected by meeting the following criteria: 1) the account is in the Heritage U.S. Premier Growth Equity Composite, 2) Wells Capital Management represents that the holdings, characteristics and risk profile are representative of the strategy/style of the Heritage U.S. Premier Growth Equity Composite. Any changes to the representative account must be approved by the director of investment risk management. 1Top ten holdings are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. Past performance is not indicative of future results. A list of all holdings from the prior one-year period is available upon request. 2S&P 500 is for illustrative purposes only. Source: Bank of New York Mellon Corporation and FactSet Heritage Growth Equity – Third Quarter 2012 43
  44. 44. Heritage U.S. Premier Growth Equity Up Market and Down Market Capture June 1999 – September 2012 (Single Computation)Upside / DownsideJune 1999 - September 2012 (Single Computation) 130 120 110 Upside% Upside% Heritage Premier Growth (Gross) 100 Heritage Premier Growth (Net) S&P 500 90 80 70 70 80 90 100 110 120 130 Downside% Downside%June 1999 - September 2012: Summary Statistics Batting Up Down Alpha Beta R-Squared Sharpe Average Capture Capture vs. vs. Alpha vs. Beta vs. Sharpe Batting Average Up Capture vs. Down Capturevs. R-Squared Ratio vs. vs. Market Market Market Market Market Ratio Market vs. Market Market vs. Market Market vs. Market vs. Market Heritage U.S. Premier Growth – Gross 5.0% 1.02 0.3 58.8% 123.0% 99.3% 73.0%Heritage Premier Growth (Gross) 5.0 1.02 0.3 58.8 123.0 99.3 73.0 Heritage U.S. Premier Growth – Net 4.2% 1.02 0.2 58.1% 120.5% 100.5% 73.0% S&P 500* 0.0% 1.00 0.0 0.0% 100.0% 100.0% 100.0%Heritage Premier Growth (Net) 4.2 1.02 0.2 58.1 120.5 100.5 73.0S&P 500 0.0 500 is for illustrative purposes only. 0.0 *S&P 1.0 0.0 100.0 100.0 100.0 Manager Databases via Zephyr Style Advisor Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 44
  45. 45. Heritage U.S. Premier Growth EquityAnnualized Performance Peer Universe Rankings As of September 30, 2012 Heritage U.S. Premier Growth – Gross S&P 500* *S&P 500 is for illustrative purposes only. Source: eVestment Alliance U.S. Large Cap Equity Universe. All returns greater than one year are annualized. There may be a small return difference in charts generated by eVestment Alliance due to rounding. Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 45
  46. 46. Heritage U.S. All Cap Growth EquityPortfolio Characteristics – As of September 30, 2012Top Ten Equity Holdings1 Characteristics Market Cap Portfolio*Company ($B) Weight (%) Portfolio Characteristics Portfolio* S&P 5002Apple Inc. 625.3 8.5 Weighted Median Market Cap ($B) 12.8 57.5Google Inc. 246.7 3.5 Weighted Average Market Cap ($B) 81.3 122.1Alexion Pharmaceuticals Inc. 22.1 3.4 Portfolio P/E-I/B/E/S 1-Year Forecast 20.4 13.3eBay Inc. 62.3 3.3 Long-Term Growth Forecast – I/B/E/S Median (%) 19.1 10.7Cognizant Technology Solutions Corp. 20.9 3.1 Return on Equity – 5-Year Average 22.5 19.3Kansas City Southern 8.3 2.8 Number of Holdings 95 500Tractor Supply Co. 7.0 2.4 Turnover (%) 48Whole Foods Market Inc. 18.0 2.3Rackspace Hosting Inc. 9.0 2.3Ulta Salon Cosmetics & Fragrance Inc. 6.1 2.1Total 33.7Sector Distribution 2 *This information is based on a representative account within the Heritage U.S. All Cap Growth Equity Composite. The representative account has been selected by meeting the following criteria: 1) the account is in the Heritage U.S. All Cap Growth Equity Composite, 2) Wells Capital Management represents that the holdings, characteristics and risk profile are representative of the strategy/style of the Heritage U.S. All Cap Growth Equity Composite. Any changes to the representative account must be approved by the director of investment risk management. 1Top ten holdings are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. Past performance is not indicative of future results. A list of all holdings from the prior one-year period is available upon request. 2S&P 500 is for illustrative purposes only. Source: Bank of New York Mellon Corporation and FactSet Heritage Growth Equity – Third Quarter 2012 46
  47. 47. Heritage U.S. All Cap Growth Equity Up Market and Down Market Capture June 1999 – September 2012 (Single Computation)Upside / DownsideJune 1999 - September 2012 (Single Computation) 160 140 120 Upside% Heritage All Cap Growth (gross) 100 Upside% Heritage All Cap Growth (net) S&P 500 80 60 40 40 60 80 100 120 140 160 Downside%June 1999 - September 2012: Summary Statistics Downside% Batting Up Down Alpha Beta R-Squared Sharpe Average Capture Capture vs. vs. vs. Ratio vs. vs. vs. Market Market Alpha vs. Beta vs. Sharpe Batting Average Up Market Capture Market Down Capture R-Squared Market Market Market Market Ratio vs. Market vs. Market vs. Market vs. MarketHeritage All Cap Growth (gross) 7.9% 1.07 0.4 64.4% 142.9% 102.3% 67.3% Heritage U.S. All Cap Growth Equity – Gross 7.9% 1.07 0.4 64.4% 142.9% 102.3% 67.3%Heritage All CapHeritage U.S. Growth (net) All Cap7.1% Growth 1.07 0.3 63.1% 140.2% 103.6% 67.3% Equity – Net 7.1% 1.07 0.3 63.1% 140.2% 103.6% 67.3% S&P 500* 0.0% 1.00 0.0 0.0% 100.0% 100.0% 100.0%S&P 500 0.0 1.0 0.0 0.0 100.0 100.0 100.0 *S&P 500 is for illustrative purposes only. Manager Databases via Zephyr Style Advisor Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 47
  48. 48. Heritage U.S. All Cap Growth EquityAnnualized Performance Peer Universe RankingsAs of September 30, 2012 Heritage U.S. All Cap Growth Equity – Gross S&P 500* *S&P 500 is for illustrative purposes only. Source: eVestment Alliance U.S. Large Cap Equity Universe. All returns greater than one year are annualized. There may be a small return difference in charts generated by eVestment Alliance due to rounding. Note: The GIPS compliant presentation can be found at the end of this presentation. Heritage Growth Equity – Third Quarter 2012 48
  49. 49. DisclaimerThis document is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instrumentsnamed or described in this document. Interested parties are advised to contact the entity with which they deal, or the entity that providedthis document to them, if they desire further information. The information in this document has been obtained or derived from sourcesbelieved by Wells Capital Management to be reliable, but Wells Capital Management does not represent that this information is accurate orcomplete. Any opinions or estimates contained in this document represent the judgment of Wells Capital Management, at this time, andare subject to change without notice. Wells Capital Management and its affiliates may from time to time provide advice with respect to,acquire, hold, or sell a position in, the securities or instruments named or described in this document.Wells Capital Management is the trade name of the investment management services provided by certain subsidiaries of WellsFargo & Company and marketed by Wells Fargo Securities International Limited and Wells Capital Management, Inc. WellsFargo Securities International Limited is authorised and regulated by the U.K. Financial Services Authority.Wells Capital Management provides investment advisory services to institutional clients. The rules contained under the Financial Servicesand Markets Act 2000 concerning the protection of Retail Clients does not apply, nor will the Financial Services Compensation Scheme beavailable.For the purposes of Section 21, U.K. Financial Services and Markets Act 2000 (the “Act”), the content of this communication has beenapproved by Wells Fargo Securities International Limited, a regulated person under the Act. Heritage Growth Equity – Third Quarter 2012 49

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