Focused growth equity 4Q 2008

Transcription

1 Comparative Performance Annualized Returns (%) Trailing Period Performance 4Q08 1 Year 3 Year 5 Year 7 Year 10 Year Inception* Focused Growth (Gross of Fees) Focused Growth (Net of Fees) Russell 1000 Growth S&P 500 Citigroup Growth Calendar Year Performance Focused Growth (Gross of Fees) Focused Growth (Net of Fees) Russell 1000 Growth S&P 500 Citigroup Growth Trailing Period Performance (%) (Gross of Fees)** Calendar Year Performance (%) (Gross of Fees)*** Q08 1 Year 3 Year 5 Year 7 Year 10 Year Inception ** Please refer to the Trailing Period Performance table above for Net of Fees Performance; Periods greater than 1 year are annualized. n Focused Growth n Russell 1000 Growth n S&P 500 Citigroup Growth *** Please refer to the Calendar Year Performance table above for Net of Fees Performance. n Focused Growth n Russell 1000 Growth n S&P 500 Citigroup Growth *Inception 1/1/93 Please see Composite Presentation provided on the last page. Past performance is not indicative of future results.

2 Top Portfolio Holdings Quanta Services, Inc. Construction & Engineering 6.2% Costco Wholesale Hypermarkets & Supercenters 6.1% Novo Nordisk Pharmaceuticals 6.0% Expeditors International Airfreight & Logistics 5.8% Teva Pharmaceutical Pharmaceuticals 5.6% Western Union Company Services-Data Processing 5.6% Johnson & Johnson Pharmaceuticals 5.4% Walgreen Company Retail-Drugs 5.4% Intuit Inc. Application Software 5.1% Wal-Mart Stores, Inc. Hypermarkets & Supercenters 5.1% Portfolio Characteristics WCM R1000G S&P CitiG PE Ratio (forward 4 quarters) Median Market Cap (b) $25.7 $3.3 $8.3 Weighted-Avg Market Cap (b) $46.1 $56.8 $99.9 Earnings Growth, Next 5 years 13.6% 13.1% 11.4% Return on Capital (5-yr average) 17.0% 17.6% 19.7% Long-Term Debt 17.0% 26.0% 21.9% Average Quality Rank A B++ A Source: Value Line Financial Strength. Source: WCM FG Composite. EXCESS Returns Rolling 5 year annualized excess returns vs Russell 1000 Growth Index (Gross of Fees) 12% 8% 4% 0% % % 12/99 6/00 12/00 6/01 12/01 6/02 12/02 6/03 12/03 6/04 12/04 6/05 12/05 6/06 12/06 6/07 12/07 6/08 12/08 Source: WCM Composite, Bloomberg. This supplemental information complements the Composite Presentation provided on the last page. Past performance is not indicative of future results.

3 Quarterly & Annual Returns WCM Gross WCM Net R1000G S&P CitiG WCM Gross WCM Net R1000G S&P CitiG Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Please see Composite Presentation provided on the last page. Past performance is not indicative of future results.

4 Investment INVESTMENT professionals PROFESSIONALS Paul R. Black, Portfolio Manager Paul s primary responsibilities include portfolio management and equity research. His 26-year career in the investment business includes positions as portfolio manager with Wells Fargo Private Banking Group and Bank of America. Paul is a member of the Investment Strategy Group. He helps define the firm s investment strategy and has an active role in the selection of securities. Paul also sets the firm s direction and acts as a client liaison for communication of investment decisions and strategy. Paul holds a B.S. in Finance from California State University, San Diego. He is currently a member of both the CFA Institute and the CFA Society of Orange County. Kurt R. Winrich, CFA, Portfolio Manager Kurt s primary responsibilities include portfolio management and equity research. He has over 25 years of experience in the investment business. Kurt is a member of the Investment Strategy Group. He graduated from Stanford University with an M.S. and B.S. in Electrical Engineering. Prior to joining WCM Kurt was the head of computer-aided design and analysis at Hughes Electronics Santa Barbara Research Center. He is a CFA Charterholder and is a member of both the CFA Institute and the CFA Society of Orange County. Kurt is also a member of the Dean s Advisory Board for the Business School at Concordia University, Irvine. James C. Owens, Portfolio Manager Jim s primary responsibilities include portfolio management, securities research and client service. He is a member of the Investment Strategy Group. His 35-year career in the investment business includes positions as Portfolio Manager and Research Analyst for Wells Fargo Investment Advisors, as well as Portfolio Manager for the Bank of Newport Trust. As a Portfolio Manager, Jim helps define investment policy and helps select equity holdings. He received a B.A. in Economics from the University of California, Santa Barbara and an M.A. from California State University, Fullerton. Jim is a member of both the CFA Institute and the CFA Society of Orange County and is board president for the Rehabilitation Institute of Southern California. Robert W. Gwin, III, Business Analyst Rob s primary responsibility is to produce original equity research for the firm s investment team. He graduated from Vanderbilt University with a B.E. in Chemical Engineering. Rob also holds an M.B.A. from The Anderson School at UCLA. Prior to joining WCM, Rob worked in various corporate finance and corporate valuation roles after spending five years working in business process consulting at Accenture (formerly Andersen Consulting). Michael B. Trigg, Business Analyst Mike has nine years of experience in the investment management industry. He s responsible for producing original research on existing and prospective investments for the Investment Strategy Group. Prior to joining WCM, Mike worked at Morningstar, Inc. in Chicago, IL, where he managed their model Growth Portfolio and covered a variety of companies in the technology industry. He also worked as an analyst at the Motley Fool, an online investment service. Mike earned his bachelor s degree in finance with honors from Saint Louis University. Richard A. Kieding, Business Analyst Dick has over 48 years of investment management experience, including 11 years as a Principal Partner with Santa Barbara Securities and Branch Manager for Dean Witter & Co., Inc. He maintains a strong commitment to original research and is a member of the Investment Strategy Group. Dick graduated from the University of California, Santa Barbara with a B.A. in Political Science. Dick is a member of the CFA Institute. His life-long commitment to helping the poor has taken him around the U.S. and the world.

5 Investment INVESTMENT professionals PROFESSIONALS (CONT D) Sanjay Ayer, CFA, Business Analyst Prior to joining WCM, Sanjay worked at Morningstar in Chicago, IL, where he acted as publishing analyst for the gaming, cruise and online travel industries. He also worked as a performance analyst with J&W Seligman in New York. Sanjay graduated Phi Beta Kappa from Johns Hopkins University. David A. Brewer, Compliance, Operations David has over 23 years of investment experience. As Chief Compliance Officer, he administers WCM s compliance program to ensure full conformity with the Advisers Act. As such, he establishes, maintains, and monitors the firm s policies and procedures. David is also the Chief Operating Officer. He is responsible for the design, operation and improvement of the systems that provide the highest level of client support. He holds a B.A. in Business Economics from Westmont College, and is a member of both the CFA Institute and the CFA Society of Orange County. David serves on the City of Mission Viejo s Investment Advisory Committee. William E. Orke, Managing Director Patrick Duff Daniels, Managing Director Duff has over 19 years of experience in the investment business, having worked with both individual and institutional clients. His experience includes portfolio management and relationship management roles with Van Deventer & Hoch Investment Counsel and Bank of America Private Bank. Duff is responsible for consultant and plan sponsor relationships. He holds a B.A. from Santa Clara University. He is a member of the CFA Society of Orange County. Matt MacArthur, Managing Director Matt has over 22 years of investment management experience including domestic and international equity markets. He has worked with both institutions and high net worth individuals. His primary responsibilities include the communication of the firm s investment decisions and strategy to clients, analysts and consultants. Matt attended the University of Arizona and received his BA degree from Master s College. He earned the CIMA designation from the Wharton School of University of Pennsylvania. Bill has over 24 years of investment management experience, including roles as an analyst, managing director and portfolio manager. Bill s primary responsibilities include the communication of the firm s investment decisions and strategy. He graduated from the University of Minnesota with a B.A. degree in economics. Bill completed the Certified Investment Management Analyst (CIMA) program at the University of Pennsylvania s Wharton School and is a member of the Investment Management Consultants Association.

6 Disclosure statement Year End Total Firm Assets (millions) U.S. Dollars (millions) Composite Assets % of Non-Fee- Paying Accounts Number of Accounts Gross Composite Annual Performance Results Net Composite Russell 1000 Growth Composite Dispersion , % % % N.A ,621 1,407 <1% % 0.24% 11.81% 0.5% ,290 1,453 <1% % -3.37% 9.10% 0.3% ,883 1,715 <1% % -2.90% 5.27% 0.5% , <1% % 10.69% 6.30% 1.1% <1% % 25.29% 29.76% 1.3% <1% % % % 1.3% % % % % 2.1% % -5.51% % 5.6% % 44.22% 33.14% 3.0% 1998* 264 <1 Five or fewer 40.41% 38.99% 38.72% N.A. 1997* <1 Five or fewer 39.70% 38.41% 30.48% N.A. 1996* <1 Five or fewer 26.80% 25.59% 23.12% N.A. 1995* <1 Five or fewer 34.13% 32.86% 37.19% N.A. 1994* <1 Five or fewer 1.43% 0.51% 2.66% N.A. N.A. Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year. *Information presented prior to October 1, 1998 pertains to a portfolio managed by the Portfolio Manager while affiliated with a prior firm. The presentation conforms to GIPS guidelines regarding the portability of investment results. Focused Growth Equity Composite contains fully discretionary focused growth equity accounts. For comparison purposes the composite is measured against the Russell 1000 Growth. In presentations shown prior to July 1, 2003, the S&P 500 Index was shown for comparison purposes, and in presentations shown prior to June 30, 2006, the composite was compared against the S&P Barra Growth Index. Due to changes in the construction of the S&P Barra Growth Index and to more accurately reflect the strategy of the composite, the benchmark was changed. Additional information regarding the prior benchmarks is available upon request. The minimum account size for this composite is $1 million in equities. Prior to January 1, 2004 the minimum account size was $100 thousand in equities. has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS ). WCM is an equity portfolio, fixed income portfolio and balanced portfolio investment manager, registered with the U.S. Securities and Exchange Commission that invests solely in U.S. dollar-denominated securities, and is defined as an independent investment management firm that is not affiliated with any parent organization. Total Firm Assets are defined to include all client assets, whether fee-paying or non-fee paying, whether fully-discretionary or non-discretionary. However, advice-only accounts where the client must implement any and all actions are excluded. The firm maintains a complete list and description of composites, which is available upon request. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results. The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance was calculated using actual management fees. The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding policies for calculating and reporting returns is available upon request. The management fee schedule is as follows: 1.00% up to $10 million; 0.75% on $10-$25 million; 0.65% on $25-$50 million; and 0.50% over $50 million. Fees are negotiable. Prior to January 1, 2005, balanced portfolio segments were included in this composite. Cash was allocated to equity segments based on a set percentage. Further information regarding the cash allocation methodology is available upon request. As of January 1, 2008, accounts experiencing cash flows equal to or greater than 20% of their value are temporarily removed from the composite during the month in which the cash flows occur. The Focused Growth Equity Composite, formerly named the Focused Growth Equity + Cash Composite, was created October 1, Performance presented prior to October 1, 1998 occurred while the Portfolio Manager was affiliated with a prior firm and the Portfolio Manager was the only individual responsible for selecting the securities to buy and sell. s compliance with GIPS has been verified for the period January 1, 1993 through December 31, 2007 by Ashland Partners & Company LLP. A copy of the verification report is available upon request.