Non-U.S. Concentrated Growth

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1 Cumulative Excess Return % Return % Non-U.S. Concentrated Growth Quarterly Review Composite Performance Periods Ending 31 December Qtr 4 1 Year 3 Year 5 Year Since Inception At A Glance Inception: 1 April 2009 Benchmark: MSCI ACWI ex- U.S. AUM: $ million USD Non-U.S. Concentrated Growth Gross of Fees MSCI ACWI ex-u.s. Inception date: 1 April The value of investments can fluctuate. Data assumes reinvestment of dividends and capital gains. Data reflects past performance. Past performance does not guarantee future results. Periods greater than one year have been annualized. Quarterly Top Relative Contributors and Detractors Contributor Detractor Komatsu Ltd 0.48 adidas AG Kering 0.48 Grupo Financiero Banorte SAB de CV Tencent Holdings Ltd 0.40 CRH PLC Bank Mandiri Persero Tbk Pt 0.30 X5 Retail Group NV Treasury Wine Estates Ltd 0.29 AP Moller - Maersk A/S Attribution Analysis One Year Ending 31 December Sector Allocation Security Selection Currency Effect Total Effect

2 Investing With a Time-Tested Growth Philosophy We believe that accelerating growth in revenues and earnings results in significant potential for stock price appreciation. markets are inefficient at identifying such points. Our process is designed to uncover stocks that outperform as earnings growth accelerates, market expectations rise and multiples expand. Goal Seeks to outperform the MSCI ACWI ex-u.s. by 3% to 4% annualized over a market cycle. Risk Guidelines Maximum position size: 5% active weight Regional exposure: +/- 25% of benchmark weight Sector exposure: +/- 25% of benchmark weight Emerging markets exposure: < 50% Expected tracking error: 6% to 8% versus benchmark Investment Process Investment Universe Market capitalization > $3B Sufficient trading liquidity 1 2 Fundamental 3 Idea Generation Identify companies exhibiting accelerating growth and improving fundamentals Fundamental information flow Quantitative screens Analysis Confirm acceleration is genuine and sustainable Construction Focus portfolio on best ideas Monitor risk controls and guidelines Companies 2

3 Characteristics Characteristics Benchmark Weighted Average Market Capitalization $47.0 B $53.0 B Median Market Capitalization $16.1 B $5.1 B Price To Earnings Ratio, Historical 1 Year 27.0x 16.4x Price To Earnings Ratio, Forecasted 1 Year 23.4x 15.5x EPS Growth, Historical 1 Year 14.6% 11.3% EPS Growth, Forecasted 1 Year 19.3% 12.3% Number of Holdings Number of Countries Turnover, Trailing 1 Year 73% N/A % Cash 0.4% 0.0% Forecasts are not a reliable indicator of future performance. Investment Team Managers - Rajesh Gandhi, CFA - Jim Gendelman - Jim Zhao, CFA Client Managers - Nathan Chaudoin - Bernard Chua, CFA - Laura Granger, CFA - Jim Shore, CFA 8 Investment Analysts Located in New York Top 10 Holdings Holding Country Industry Assets Lonza Group AG Switzerland Life Sciences Tools & Services 3.76 Tencent Holdings Ltd China Internet Software & Services 3.48 Alibaba Group Holding Ltd China Internet Software & Services 3.38 Kering France Textiles Apparel & Luxury Goods 3.36 London Stock Exchange Group PLC UK Capital Markets 3.26 Treasury Wine Estates Ltd Australia Beverages 3.20 AIA Group Ltd Hong Kong Insurance 3.11 CSL Ltd Australia Biotechnology 3.11 Diageo PLC UK Beverages 3.00 Komatsu Ltd Japan Machinery 2.91 Total 32.56% Top 10 Overweights Holding Weight Benchmark Weight Overweight Lonza Group AG Kering London Stock Exchange Group PLC Treasury Wine Estates Ltd CSL Ltd Erste Group Bank AG Komatsu Ltd Bank Mandiri Persero Tbk PT adidas AG AIA Group Ltd Equity holdings are grouped to include common shares, depository receipts, rights and warrants issued by the same company. holdings subject to change without notice. 3

4 Sector Allocation Weight vs. Benchmark % Sector Benchmark Industrials Consumer Discretionary Information Technology Consumer Staples Health Care Financials Utilities Energy Real Estate Telecommunication Services Materials Quarterly Sector Performance Contribution to Return vs. Benchmark Sector Contribution to Return Contribution to Benchmark Return Industrials Consumer Staples Information Technology Health Care Utilities Telecommunication Services Real Estate Consumer Discretionary Energy Financials Materials % When shown, "Diversified" includes portfolio holdings that cannot be attributed to a specific GICS sector. 4

5 Country Allocation: Top 10 Over/Underweights % Weight vs. Benchmark Country United Kingdom Brazil Denmark Austria Germany Indonesia Belgium Portugal Australia Ireland Benchmark Taiwan Singapore Japan Italy South Africa France Spain Netherlands South Korea Canada Quarterly Top Relative Contributors and Detractors by Country Contributor France 0.73 United Kingdom 0.45 Indonesia 0.29 Hong Kong 0.28 Japan 0.27 Detractor Ireland Russia Mexico Germany South Africa

6 Percentile Rank Non-U.S. Concentrated Growth Risk-Adjusted Performance Three Year Risk-Adjusted Performance vs. ea ACWI ex-u.s. Large Cap Equity Universe vs. MSCI ACWI ex-u.s., Citigroup 3-Month T-Bill 0 Excess Returns Tracking Error Information Ratio Sharpe Ratio 25 Median Non-U.S. Concentrated Growth Excess Returns Tracking Error Information Ratio Sharpe Ratio Manager Percentile Rank Median Source: evestment Analytics Excess returns are gross of fees. Number of products in the universe was 117. Available Vehicles Separate Account Available in U.S. and certain non-u.s. countries 6

7 Quarterly Commentary Review Non-U.S. equities record strong quarter. Japan-based equities outperformed other developed markets, driven by strong industrial activity and improving construction trends. Stronger industrial activity also helped to keep European stocks on an upswing. The emerging markets rally continued amid strong fundamentals. Global recovery remains solid. Synchronized global earnings growth continues to be the key driver of stockprice performance. Rising consumer and business confidence coupled with improved corporate profits led to increased capital spending and employment growth. Bottom-up estimates suggest earnings growth will remain strong into Industrials outperform, supported by strong global economic activity. Industrials holdings, supported by the strengthening global economy, added to performance. Machinery maker Komatsu was a beneficiary of global construction activity leading to increased demand for new equipment and continued strength in mining. Demand for luxury and aspirational brands benefits consumer staples holdings. Strengthening consumer sentiment is driving demand for premium and aspirational brands. Treasury Wine Estates is benefiting from increased demand for premium wines in China. Pola Orbis is benefiting from increased demand for its high-end skin care products. Metals and mining underweight detracted. Our underweight in the metals and mining industry amid a sharp rally in commodities prices detracted. Also, cement and aggregates company CRH was weak despite reporting in-line results. Weather-related delays are causing disruption in short-term volume growth. Economic expansion aids European cyclicals. We initiated a position in electrical equipment maker ABB, which is benefiting from increasing industrial activity and capital expenditure recovery. Japan improves, portfolio now slightly overweight Asia. We added select names in Japan benefiting from both global and domestic growth. However, our persistent underweight relative to the benchmark remains due to the composition of the index, which is heavily weighted to automobiles and financials. Because of the new positions in Japan, the portfolio is now slightly overweight Asia. Key Contributors Komatsu. Stock of the manufacturer and supplier of construction and mining equipment rallied after it reported better-than-expected revenue and earnings growth driven by global strength in construction and mining activity. Margins exceeded expectations due to volume leverage and the continued integration of the Joy Global acquisition. Kering. The luxury goods firm reported another strong quarter driven by strength in its Gucci brand, which continues to benefit from new designs, new store formats, and increased luxury-goods demand. Gucci revenue was 18% better than expected, up 49% with higher full price sell-through and strong wholesale results. Tencent Holdings. Stock of the social media and gaming company rallied after it reported accelerating revenue and vast social media user base. Key Detractors adidas. The athletic shoe and apparel manufacturer reported better-than-expected earnings but demonstrated a slight slowdown in growth versus previous quarters. Normalizing organic revenue growth has led to a derating of the stock price as the stock is consolidating its strong year-to-date gains. The growth outlook remains strong. Grupo Financiero Banorte. The stock was down due to its unexpected late-month announcement of its intent to acquire Interacciones. Management has indicated the synergies could result in approximately 10% earnings accretion and improve return on equity. Concerns about CRH. Stock of the cement and aggregates company was weak despite reporting in line results. The company expects underlying trends in the U.S. to continue to improve but has experienced weather-related delays. While volumes and pricing in Europe are improving, its Philippines business is weighing on overall results. Notable Trades ABB. been accelerating. Electrical products growth is driven by grid projects related to wind hookups and the fast-growing electrical vehicle market, and the robotics division is benefiting from automotive and industrial investments to improve efficiencies and reduce labor costs. B&M European Value Retail. We purchased stock of the discount retailer due to a positive inflection in revenue growth as improvements in traffic and ticket size are leading to accelerating like-for-like sales growth. The and its store base is growing. Margins are also improving. 7

8 Roche Holding. We exited pharmaceutical firm Roche as we believe its new product story has played out. Roche achieved the expected success in its new hemophilia and multiple sclerosis products. In immuno-oncology, some results were weaker than anticipated and there are some X5 Retail Group. Stock of the Russia-based grocery retailer was weak due to expectations earnings would be revised lower as consumer purchases of food remain weak and the relative percentage of lower margin value products is increasing. We expect to see earnings revised lower. We sold the stock. Positioning for the Future Our process continues to be based on fundamental analysis and bottom-up security selection, but certain broad themes have emerged. Corporate reinvestment leads to opportunities in industrials. Corporate management teams believe improved visibility and cash flow among customers is leading to accelerated capital investment and largest overweight. New purchase ABB, a maker of electrical equipment, is benefiting from accelerating industrial activity due to improved capital expenditure trends. Other holdings include Komatsu, benefiting from a rebound in construction and mining activity, Recruit Holdings, benefiting from increased global employment trends, and DSV, benefiting from increased volumes in freight forwarding. Information technology supported by shift to digital. The secular shift to digital within multiple industries has led to our technology overweight. Examples of this trend include social media, e-commerce, online gaming, and automation. We continue to see companies report strong results leading to upward earnings revisions. Demand for luxury goods benefiting consumer discretionary name. Luxury goods firm Kering reported another strong quarter, driven by strength in its Gucci brand, which is benefiting from new designs and store formats, as well as from increased luxury goods demand. Lack of growth opportunities in utilities and telecommunications. The portfolio has no exposure in the telecommunication services or utilities sectors, where we have not seen examples of companies exhibiting accelerating, sustainable growth that fit our investment process. Economic improvement creating opportunities in Europe. Europe remains an overweight as bottom-up analysis indicates clear evidence of increased capital investment and industrial strength. Record high business and consumer confidence supports industries such as travel. 8

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Sector weights, portfolio characteristics and holdings are of a representative account in the composite. Holdings are current as of the date indicated, are subject to change and may not reflect the portfolio's current holdings. construction guidelines document operational policies and not necessarily investment restrictions imposed on management of the strategy. Material presented has been derived from industry sources considered to be reliable, but their accuracy and completeness cannot be guaranteed. Opinions expressed are those of the portfolio investment team and are no guarantee of the future performance of any portfolio. Nothing in this document should be construed as offering investment advice. Please note that this is for informational purposes only and does not take into account whether an investment is suitable or appropriate for a specific investor. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI. For purposes of compliance with the Global Investment Performance Standards (GIPS with the Global Investment Performance Standards (GIPS ). Non-U.S. Concentrated Growth composite includes portfolios that invest in the equity of large capitalization companies in non-u.s. developed markets that are demonstrating improving growth rates. Index futures (and currency forwards and futures, where applicable or appropriate) are occasionally used to equitize cash and manage portfolio risk. Other derivative instruments may be used, as allowed, as part of the investment strategy. Returns are calculated and stated in U.S. dollars. The return may increase or decrease as a result of currency fluctuations. 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