City of Fresno Retirement Systems
A i I t ti l I t LLC
City of Fresno Retirement Systems
Axiom International Investors LLC
E i M k t E it St tEmerging Markets Equity StrategyMarch 25, 2014
Marketing Contact:Shane McMahonVice President, Client Service and Marketing(203) [email protected]
AXIOM
33 Benedict Place · Greenwich, CT 06830 · Tel (203) 422-8000 · Fax (203) 422-8090
Table of Contents
Axiom International Investors LLC………………..…………..……..… p. 2 - 6
I. Portfolio Review and Analysis……………………………………… p. 7 - 19
II. Performance and Fees………….…………………………………… p. 20 - 22
Appendix
Macroeconomic and Biographies….………………………………... p. 23 - 30
Performance Footnotes……………………………………………… p. 31 - 37
AXIOM 1
Firm Overview
• Axiom was founded on September 1, 1998 when a team of investment professionals t d f C l b Ci l I t ffili t f PIMCO Ad i H ldi LPseparated from Columbus Circle Investors, an affiliate of PIMCO Advisors Holdings, LP.
• Active, fundamental, all-cap, all-country, growth equity manager
• $10 Billion in assets under management utilizing a consistent investment process across all strategies since inception
• Experienced team - Lead Portfolio Managers have over 20 years average experience in the p g y g pindustry and have collaborated as partners at Axiom for over 10 years on average
• 100% Employee Owned; Employees Co-Invest alongside clients
AXIOMAXIOM 22
Investment StrategiesLong Only Equities: $9 557 MM
International (Non-U.S.)Equity
Assets: $2 763 MM
Global Equity
Assets: $4,591 MM
U.S. Small-Cap Equity
Assets: $124 MM
Emerging MarketsEquity
Assets: $2 079 MM
Long Only Equities: $9,557 MM
Assets: $2,763 MMInception: 7/1/1996
Lead Portfolio Manager:Andrew Jacobson, CFA
Co Portfolio Manager:
Assets: $4,591 MMInception: 7/1/2004
Lead Portfolio Manager:Bradley Amoils
Co-Portfolio Manager:
Assets: $124 MMInception: 9/1/2006
Lead Portfolio Manager:David Kim, CFA
Co Portfolio Manager:
Assets: $2,079 MMInception: 8/1/2007
Lead Portfolio Manager:Christopher Lively, CFA
Co-Portfolio Manager:Co-Portfolio Manager:Bradley Amoils
Co-Portfolio Manager:Andrew Jacobson, CFA
Co-Portfolio Manager:Matthew Franco, CFA
Co-Portfolio Manager:Donald Elefson, CFA
I t ti l All C I t ti l Gl b l
Long-Short Equities: $393 MM
International All-Cap Opportunity Fund
Assets: $233 MMInception: 1/1/1999
International Micro-Cap Fund
Assets: $124 MMInception: 9/1/2004
GlobalMicro-Cap Fund
Assets: $36 MMInception: 2/1/2007
Lead Portfolio Manager:Andrew Jacobson, CFA
Co-Portfolio Manager:Bradley Amoils
Lead Portfolio Manager:Matthew Franco, CFA
Co-Portfolio Manager:David Kim, CFA
Lead Portfolio Manager:Matthew Franco, CFA
Co-Portfolio Manager:David Kim, CFA
AXIOM 3
Total Assets Under Management as of December 31, 2013: $9,950 MM
The Axiom International Investors TeamEmerging MarketsInternational / Global Small / Micro-CapEmerging MarketsInternational / Global Small / Micro-Cap
MATTHEW FRANCO, CFA Portfolio Manager
Years Experience: 18Years at Axiom: 15
Education: Saint John’s University, B.S.
ANDREW JACOBSON, CFA Portfolio Manager, CIO
Years Experience: 26Years at Axiom: 15
Education: Princeton, B.A.
CHRISTOPHER LIVELY, CFA Portfolio Manager
Years Experience: 26Years at Axiom: 6
Education: Harvard University, B.A.Founding Member of Axiom
Prior Affiliations: Columbus Circle (PIMCO)
DAVID KIM, CFAPortfolio Manager
Years Experience: 15Years at Axiom: 8
Wharton School, M.B.A.
Founding Member of Axiom
Prior Affiliations: Columbus Circle (PIMCO),Booz Allen, Apax
Georgetown University, M.S.UCLA, M.B.A.
Prior Affiliations: Clay Finlay, Citigroup
DONALD ELEFSON, CFAPortfolio Manager
Years Experience: 31Years at Axiom: 2
Education: University of Washington, B.A.
Education: Georgetown University, B.S.
Prior Affiliations: Pinnacle Associates
BRADLEY AMOILSPortfolio Manager
Years Experience: 23Years at Axiom: 12
Education: University of Witwatersrand,South Africa B Sc and M D
YOGESH BORKAR, CFAPortfolio Manager
Prior Affiliations: Harding Loevner,U.S. Trust
South Africa, B.Sc., and M.D.Columbia University, M.B.A.
Prior Affiliations: American Century,OppenheimerFunds
Years Experience: 24Years at Axiom: 1
Education: University of Bombay, B.Com.Yale University, M.B.A
Prior Affiliations: Fidelity/Pyramis
6 Research Analysts 4 Research Associates 5 Traders
Operations & ComplianceDonald Miller, Chairman Bart Tesoriero, Chief Operating Officer Denise Zambardi, Chief Compliance Officer
8 Additional Operations & Compliance Professionals
Client Service & Marketing
AXIOM 4
Client Service & MarketingDrew Zielinski Shane McMahon William Bonner Lindsay Chamberlain
5 Additional Client Service/Marketing Associates
Inception-to-Date Returns (Net of Fees*, Annualized)Long Only Equity Strategies as of December 31, 2013
13.9
12
15 8.27.2
7
8
9
4.7
613.4
12
15
International (Non-U.S.) Equityvs. MSCI ACWI ex-US
Global Equity vs. MSCI ACWI
U.S. Small Cap vs. Russell 2000
Emerging Markets vs. MSCI EM
Long Only Equity Strategies as of December 31, 2013
5.7
3
6
9
1
2
3
4
5
6
0.7
2
48.2
3
6
9
0 0
1
00
Long-Short Equity Strategies as of December 31, 2013
Inception: July 1, 1996 Inception: July 1, 2004 Inception: September 1, 2006 Inception: August 1, 2007
6.6
5.8
5
6
715.4
12
14
16 13.5
9.1
12
15
Global Micro-Capvs. MSCI World Small Cap
International Opportunityvs. MSCI ACWI ex-US
International Micro-Capvs. MSCI World ex-US Small Cap
0
1
2
3
4
5.5
0
2
4
6
8
10
3
6
9
AXIOM 5•All numbers are preliminary. Net of fee calculations are net of highest management fees, and where applicable, performance fees, and do not include individualized client administrative expenses. See disclosures in the back of the presentation for additional information.
00 0
Axiom Portfolio BenchmarkInception: January 1, 1999 Inception: September 1, 2004 Inception: February 1, 2007
Currency: USD
Axiom Representative Clients
Bryn Mawr College
Jewish Federation of Cleveland
The Williams Companies
University of Cincinnati
Kaiser Permanente
NCR Corporation
University of Oklahoma Foundation
University of Ottawa
Southern Methodist University West Virginia Investment Management Board
AXIOM 6AXIOM
This list is intended to represent a broad cross section of clients of Axiom International Investors. None of the clients were selected on the basis of performance criteria and it is not known whether they approve of or disapprove of Axiom International Investors or the investment advisory services provided.
Investment Philosophy & Approach
Forward Looking
Focused Nimble
Prudent
Axiom seeks to invest in quality companies that are growing and changing forAxiom seeks to invest in quality companies that are growing and changing for the better more rapidly than generally expected and where the positive
changes are not yet reflected in expectations or valuation.
AXIOM 7
Investment Process
Rigorous
Generate Ensure CalibrateIdentify
gmonitoring
GenerateIdeas Margin of
Safety
CalibrateExpectations
KeyDrivers
• Company
• Industry
• Trends
• Global/Local Analysts
• Management
• Competitors
• Focus on operating data
• Leading indicators/ anticipate earnings
• Positive Surprises
• Attractive Valuation
• Healthy BalanceSh t/C h Fl
• Macro
• Country
• Suppliers/Customers
• Media/Trade Press
• Valuation
Sheet/Cash Flow
• Reputable Organization
AXIOM 8
Valuation
Axiom Emerging Markets Equity StrategyPortfolio Construction using the Axiom Rating System
Company Position-Market capitalization -Index inclusion -Profitability -Competitive position -Balance sheet -Volatility -Daily liquidity -Credit rating -Country rating
Most
Established
EDA B C
Emerging
12Dynamic
Dynamism Factors-Leading Indicators
-Number-Quality -Success against
i
3
213
(e.g. MTN)
96 14
8(e.g. Ginko)
(e.g. Hermes Microvision)
(e.g. Naspers)
30(e.g. New Oriental
Education)
expectations-Magnitude ofacceleration
-Earnings dispersion-Earnings revisions-Analyst upgrades-Valuation
1
0
-1
(e.g. Anglo American)
(e.g. AIA Group) (e.g. Maruti Suzuki)
Most Disappointing
Valuation-Earnings growth -2
-3
AXIOM 9
Green shading represents ideal universe of buy candidates.
Axiom Analysis as of 12/31/13.
Risk Control – Emerging Markets Equity Strategy
• Diversified All-Cap, Growth Portfolios- 70 to 85 holdings- Position sizes limited to 5%- Maximum weighting guidelines:*
Sectors 0 – 40%Countries 0 – 30%
• Company SelectionStrong balance sheets- Strong balance sheets
- Positive cash flow- Solid management reputation and transparency- Environmental, Social, Governance (ESG)
• Valuation- Absolute and relative to history, global peers- Measures: P/E, P/CF, P/BV, P/S, EV/EBITDA, etc.- Relative to the magnitude of outperformance in leading indicators
• Continuous Monitoring
AXIOMAXIOM 1010*Exceptions: Financial Sector 0 – 50%
Axiom Emerging Markets Equity StrategyPortfolio Characteristics as of December 31, 2013
Holdings 83Market Capitalization $ 27.3 BMarket Capitalization (Median) $ 12 7 BMarket Capitalization (Median) $ 12.7 BDaily Trading Volume $ 66.2 MDebt Equity Ratio 58.5 %Price Earnings Ratio (2014 Estimated, Consensus) 14.9 Earnings Growth (2014 Estimated Consensus) 19 1 %Earnings Growth (2014 Estimated, Consensus) 19.1 %PEG Ratio 0.78Percent of Portfolio Holdings w/Analysts’ Earnings Revisions Up (3 mo.) 51 %Percent of Portfolio Holdings w/Analysts’ Earnings Revisions Down (3 mo.) 49 %
AXIOMAXIOM 1111
Sources: Axiom analysis, MSCI and Bloomberg.All values, except where noted, are Average.
Axiom Emerging Markets Equity StrategyTop Ten Holdings as of December 31, 2013
Security Country Sector Position Sizey y
Samsung Electronics South Korea Info. Technology 4.4Taiwan Semiconductor Taiwan Info. Technology 3.1Naspers South Africa Consumer 2.4Galaxy Entertainment China Consumer 2.1Lukoil Russia Energy 2.1Tencent Holdings China Info. Technology 2.0Beijing Enterprises China Industrials 2.0Ping An Insurance China Financials 2.0MediaTek Taiwan Info. Technology 2.0China Construction Bank China Financials 1.9
AXIOMAXIOM 1212It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities on this list.
Axiom Emerging Markets Equity StrategyTop Ten Holdings as of December 31, 2013
Samsung Electronics (Info. Technology) - South Korean manufacturer of consumer and industrial electronic equipment.
Taiwan Semiconductor (Info. Technology) - Manufacturer and marketer of integrated circuits.
Naspers (Consumer) - Holding company operating in the electronic and print media industries, based in South Africa.
Galaxy Entertainment (Consumer) - Operator of entertainment facilities, including casinos and hotels in Macau.
Lukoil (Energy) - Russian explorer, producer, refiner and transporter of oil and gas.
Tencent Holdings (Info. Technology) - Provides Internet, mobile, and telecommunication value-added services in China.
Beijing Enterprises (Industrials) - Chinese diversified company which distributes natural gas, operates water supply and wastewater treatment plants, operates toll roads and offers electronic payment systems.
Ping An Insurance (Financials) - Chinese provider and writer of property, casualty, and life insurance.
MediaTek (Info. Technology) - Semiconductor company for wireless communications and digital media solutions, based in Taiwan.
China Construction Bank (Financials) - Chinese bank specializing in wholesale banking and offering wide array of products to corporate customers.
AXIOMAXIOM 1313
p
Axiom Emerging Markets Equity StrategySector Allocations versus Benchmark
45
50
30
35
40
(12/
31/1
3)
10
15
20
25
rcen
t of E
quity
(
0
5
10
r Disc.
Staples
Energy
ancia
ls
thCare
ustria
ls
hnolo
gy
ateria
ls
Service
s
Utilitie
s
Per
Axiom Portfolio MSCI Emerging Markets (Benchmark Index)
Consu
mer Con
sumer
St En
Finan
Health
Indus
Info.
Techn
o
Mate
Teleco
m. Se Uti
AXIOMAXIOM 1414
Axiom analysis including data from MSCI as of 12/31/13.
Axiom Emerging Markets Equity StrategySector Allocations Since Inception
90%
100%
70%
80%Consumer Discretionary
Consumer Staples
Energyo (%
)
40%
50%
60%Energy
Financials
Health Care
Industrials
rcen
t of P
ortfo
lio
20%
30%Information Technology
Materials
Telecommunication Services
Utilities
Per
0%
10%
09/07 03/08 09/08 03/09 09/09 03/10 09/10 03/11 09/11 03/12 09/12 03/13 09/13
Utilities
12/13
AXIOMAXIOM 1515
Source: Factset and Bloomberg Data Service and Axiom analysis from inception July 31, 2007 through December 31, 2013.
Axiom Emerging Markets Equity StrategyRegion Allocations versus Benchmark
80
50
60
70
12/3
1/13
)
30
40
rcen
t of E
quity
(1
0
10
20Per
0EM Europe EM Asia Pacific EM Latin America EM Africa & Middle
East
Axiom Portfolio MSCI Emerging Markets (Benchmark Index)
AXIOMAXIOM 1616Axiom analysis including data from MSCI as of 12/31/13.
Axiom Emerging Markets Equity StrategyRegion Allocations Since Inception
90%
100%
70%
80%
(%)
40%
50%
60%EM EuropeEM Asia PacificEM Latin AmericaEM Africa & Middle Easten
t of P
ortfo
lio
20%
30%
% EM Africa & Middle East
Perc
e
0%
10%
09/07 03/08 09/08 03/09 09/09 03/10 09/10 03/11 09/11 03/12 09/12 03/13 09/13 12/13
AXIOMAXIOM 1717Axiom quarter-end regional allocation from inception on July 31, 2007 through December 31, 2013
Axiom Emerging Markets Equity StrategyMarket Capitalizations versus Benchmark
90
100
60
70
80
1/13
)
30
40
50
Perc
ent (
12/3
10
20
30
0>$19 Billion $6-$19 Billion Under $6 Billion
Axiom Portfolio MSCI Emerging Markets (Benchmark Index)
AXIOMAXIOM 1818Axiom analysis including data from MSCI as of 12/31/13; highest market capitalization sizes as defined by MSCI.
Axiom Emerging Markets Equity StrategyMarket Capitalizations Since Inception
100%
75%
folio
(%
)
50%Large Cap*
Mid Cap*
Small Cap*
Perc
ent o
f Por
tf
25%
0%09/07 03/08 09/08 03/09 09/09 03/10 09/10 03/11 09/11 03/12 09/12 03/13 09/13 12/13
AXIOMAXIOM 1919Source: Factset and Bloomberg Data Service and Axiom analysis from August 1, 2007 through December 31, 2013.
*As of 06/30/11, Axiom defines large cap as >$19 billion, mid cap as $6-$19 billion and small cap as under $6 billion. Prior to 6/30/11, large cap defined as >$10 billion,mid cap as $2-$10 billion and small cap as under $2 billion.
Axiom Emerging Markets Equity Composite As of December 31, 2013
25
Annualized Returns Before Fees: US Dollar Terms
20.4
14.815
20
4.35.9
5
10
cent
Ret
urn
1.9
-2.6 -2.1
0.7
-5
0
Perc
1 Year 3 Years 5 Years ITD (Annualized)Inception Date: August 1, 2007
+6.9% +4.0% +5.6% +5.2%RelativeValue Added (%):
AXIOMAXIOM 2020
MSCI Emerging Markets Index Axiom Emerging Markets Equity Composite
Axiom Emerging Markets Equity CompositeAs of December 31, 2013
100
Composite cumulative total return before fees from inception 08/01/07 – 12/31/13 = 44.8%MSCI Emerging Markets Index cumulative return 08/01/07 – 12/31/13 = 4.8%
87.578.5
60
80
100
18.327.4
22.9
4.3 5.912.6
18.9 18.2
-2.6
0.70
20
40
nt R
etur
n
-51.6
-17.5
-53.3
-18.4
-60
-40
-20
Aug. - Dec. 2008 2009 2010 2011 2012 2013 ITD
Perc
en
Aug. Dec.2007
2008 2009 2010 2011 2012 2013 ITD(Annualized)
MSCI E i M k I dA i E i M k t E it C it
Inception Date: August 1, 2007
AXIOMAXIOM 2121
MSCI Emerging Markets IndexAxiom Emerging Markets Equity Composite
Returns Before Fees: US Dollar Terms
Axiom International InvestorsAxiom Emerging Markets Long Only Fee Schedule
The fees for our services are based on the market value of capital under supervision. Fees are ordinarily billed quarterly and are computed at one-fourth of the annual feeFees are ordinarily billed quarterly and are computed at one-fourth of the annual fee rates detailed below:
Annual Fee Rates: Minimums :
1.00% On the first $25 million
0.90% On the next $75 million $1 million Commingled Trust
$75 million Separate Account
0.80% On the next $25 million
0.70% On the next $50 million
0.60% On the balance0.60% On the balance
AXIOMAXIOM 2222Currency: USDAbove fee schedule is effective 10/01/2013.
Portfolio ManagersB dl A il A d H J b CFABradley Amoils Portfolio Manager, Axiom International Investors, 2002-PresentVP, Portfolio Manager, American Century Investors, 1997-2002Equity Research Analyst, OppenheimerFunds, 1995-1997M.B.A., Columbia Business School, New YorkB.Sc., M.D. equivalent, University of the Witwatersrand Johannesburg
Andrew H. Jacobson, CFAPortfolio Manager, CIO, Axiom International Investors, 1998-PresentExecutive VP, Portfolio Manager, Columbus Circle Investors, 1993-1998Business Analyst, Booz Allen Hamilton, 1989-1991Analyst, Apax Associates, 1988-1989M.B.A., The Wharton School, University of PennsylvaniaA.B., Molecular Biology, cum laude, Princeton University
Yogesh Borkar, CFA Portfolio Manager, Axiom International Investors, 2013-PresentAssociate Portfolio Manager, Fidelity/Pyramis, 2005-2012Senior Research Analyst, DuPont Capital Management, 2001-2005Portfolio Manager/Senior Research Analyst, ValueQuest/TA, 1996-2001 Author, Rising Stars in Emerging Markets, Published November 2013
A.B., Molecular Biology, cum laude, Princeton University
David S. Kim, CFAPortfolio Manager, Axiom International Investors, 2005-PresentAnalyst, Pinnacle Associates, 2002-2005Associate, Morgan Stanley, 2000-2002Associate, DLJ International- London/Pershing, 1998-2000
M.B.A., Yale UniversityB.Com., Business Management, University of Bombay
Donald Elefson, CFAPortfolio Manager, Axiom International Investors, 2012-PresentPortfolio Manager, Harding Loevner, 2008 -2012P tf li M U S T 1999 2007
gB.S., Finance & International Business, Georgetown University
Christopher D. Lively, CFAPortfolio Manager, Axiom International Investors, 2008-PresentPortfolio Manager, Clay Finlay, 2006-2008Portfolio Manager, Legg Mason (formerly Citigroup), 2000-2006
Portfolio Manager, U.S. Trust, 1999-2007Portfolio Manager, Smith Barney Asset Management, 1994-1998Analyst, Merrill Lynch Asset Management, 1989-1994B.A., Economics, University of Washington
Matthew A. Franco, CFAPortfolio Manager Axiom International Investors 1998-Present
Portfolio Manager and Analyst, The Pioneer Group, 1993-2000M.B.A., Anderson Graduate School of Management, UCLAM.S., Foreign Service, Georgetown UniversityB.A., East Asian Studies, cum laude, Harvard University
Portfolio Manager, Axiom International Investors, 1998-PresentResearch Analyst, Columbus Circle Investors, 1997-1998Research Analyst, R.L. Renck & Co., 1996-1997B.S., Finance, summa cum laude, Saint John’s University
AXIOM 23AXIOM
Other Investment ProfessionalsE A t i ki St E i CFAEva AntoniewskiResearch Associate, Axiom International Investors, 2007-PresentAnalyst, BNY Convergex, 2005-2007Relationship Manager, JPMorgan, 2003-2005B.A./B.S., Economics & Molecular Biology, University of Arizona
Dean Bumbaca, CFA
Steven Espinosa, CFA Research Analyst, Axiom International Investors, 2013-PresentEquity Research Analyst, Neuberger Berman, 2007-2013Financial Advisor, Merrill Lynch, 2003-2005Senior Banking Analyst, JPMorgan, 2000-2003M.B.A., The Stern School of Business, New York UniversityB.S., Business Administration, University of California, BerkeleyDean Bumbaca, CFA
Research Associate, Axiom International Investors, 2012-PresentTrading Assistant, Axiom International Investors, 2012Operations Associate, Axiom International Investors, 2010-2012B.B.A., School of Business, University of Wisconsin-Madison
Patrick A. Chute
B.S., Business Administration, University of California, Berkeley
Tyler GaylordResearch Analyst, Axiom International Investors, 2012-PresentEquity Research Analyst, Fidelity Management and Research, 2006-2012Fund Accountant, Bank of New York, 2002-2004M.B.A., The Stern School of Business, New York University
Trader, European Equities, Axiom International Investors, 2006-PresentAuditor, Ernst & Young, 2004-2006B.S., Accounting, summa cum laude, Sacred Heart University
Michael DeCarloTrader, Asian Equities, Axiom International Investors, 2008-PresentT d Di t f O ti N h S d C i l 2004 2008
f yB.S., Business Administration, cum laude, University of Colorado
Salvatore LoCascioTrader, Axiom International Investors, 2007-PresentFinancial Analyst, JPMorgan, 2007Financial Analyst, Morgan Stanley, 2006B S Fi l d L S ll U i iTrader, Director of Operations, North Sound Capital, 2004-2008
Vice President, Equity Financing Services, Morgan Stanley, 1993-2004M.B.A., Global Finance, Fordham Graduate School of BusinessB.S., University of Southern California
Jonathan S. Ellis, CFASenior Research Analyst Axiom International Investors 2011-Present
B.S., Finance, magna cum laude, La Salle University
Melinda LucHead Trader, Senior VP, Axiom International Investors, 1998-PresentHead Trader, VP, Newport Pacific Management, 1994-1998B.A./B.S., International Business & Finance, American University
Senior Research Analyst, Axiom International Investors, 2011-PresentDirector, Senior Equity Analyst, Bank of America Merrill Lynch, 1999-2011Associate, Pershing LLC, 1998-1999M.B.A., Columbia Business School, Columbia UniversityB.A., Economics, with honors, Lafayette College
Kenneth McCabe Trader, Axiom International Investors, 2004-PresentVP, International Equities Trader, Citigroup Global Markets 1997-2004M.B.A., Finance, University of ConnecticutB.A., Finance, Pace University
AXIOM 24AXIOM
Other Investment Professionals, continuedTi th S M iTimothy S. MessinaResearch Analyst, Axiom International Investors, 2010-PresentInvestment Banking Analyst, Citigroup, 2008-2010B.S., Finance & Accounting, Boston College
Michael OlsenResearch Associate Axiom International Investors 2010 PresentResearch Associate, Axiom International Investors, 2010-PresentOperations Associate, Axiom International Investors, 2009-2010B.S., Finance, magna cum laude, Fairfield University
Barney H. Rosen, M.D.Research Analyst, Axiom International Investors, 2013-PresentResearch VP, Sector Portfolio Manager, GE Asset Management, 2006-2012 , g , gSenior Analyst & Partner, Ridgemark Capital Management, 2004-2006Senior Analyst, Satoha Management, 2003-2004Senior Analyst, European Investors, 2000-2003Senior Analyst, Agrus Research, 1997-1998Medical Officer, United States Navy, 1994-1997M.D., New York Medical CollegeM B A C b ll U i itM.B.A., Campbell UniversityB.A., Business Administration, Franklin & Marshall College
Mathew SawinResearch Associate, Axiom International Investors, 2010-PresentInvestment Banking Analyst, Credit Suisse, Summer 2007, 2008-2010Accounting Intern Encana Corporation Summer 2006Accounting Intern, Encana Corporation, Summer 2006B.B.A., Finance, magna cum laude, University of Iowa
David R. Schneider, CFAResearch Analyst, Axiom International Investors, 2007-PresentSenior Associate, PricewaterhouseCoopers LLC, 2004-2006B.S., Finance & International Business, with honors, Penn State University
AXIOM 25AXIOM
Compliance & OperationsEvan JohnsonO ti A i t A i I t ti l I t 2012 P t
Donald K. MillerCh i A i I t ti l I t 1998 P tOperations Associate, Axiom International Investors, 2012-Present
A.B., Economics & Political Science, Brown University
Ricky W. JohnsonOperations Associate, Axiom International Investors, 2010-PresentB.B.A., Finance, cum laude, State University of New York at Albany
Chairman, Axiom International Investors, 1998-PresentChairman/CEO, Thomson Advisory Group LP, Asset Management, 1990-1993Chairman, Greylock Financial Inc., Private Equity, 1986-1994Chairman, Christensen Boyles Corporation, Mining Services, 1986-1994Board of Directors, RPM International Inc., 1972-2012Board of Directors Huffy Corporation, 1986-2002Board of Directors, Layne Christensen Company, 1994-2012
Johanna JosefssonExecutive Assistant, Axiom International Investors, 2013-PresentAuction Administrator, Christie’s Auction House, 2011-2013B.S., Art Administration, Wagner College
Kyle McDonald
, y p y,Board of Directors, PIMCO Advisors L.P, 1994-1997M.B.A., Harvard Business SchoolB.S., Cornell University
Marlyn MorrisSenior Operations Associate, 2004-Presenty e c o a d
Operations Associate, Axiom International Investors, 2013-PresentFinance Intern, Attend Charity, 2011-2013B.S., Finance & International Business, cum laude, Villanova University
Jennifer McMackinOperations Manager, Axiom International Investors, 2001-Present
Private Client Administrator, Sanford C. Bernstein & Co., 2002-2004B.S., Business & Technology, University of Connecticut
Bartholomew Tesoriero, CPA, CGMACOO, Axiom International Investors, 2007-PresentCFO/CCO, TQA Investors LLC 1993-2007A di S i M G Th LLP 1988 1993Certificate in Management Development, Cornell University
B.S., Marketing/Management, Southampton College, LIU
Michael Miley, IACCPCompliance Specialist, Axiom International Investors, 2006-PresentOperations, Legg Mason Asset Management, 2005-2006IACCP Certified Compliance Professional
Audit Senior Manager, Grant Thornton LLP 1988-1993Audit Manager, Ernst & Young 1983-1988CGMA, Chartered Global Management AccountantB.B.A., Accounting, cum laude, Pace University
Jason R. TilchenOperations Associate Axiom International Investors 2013-PresentIACCP Certified Compliance Professional
B.S., Finance, magna cum laude, University of New Hampshire Operations Associate, Axiom International Investors, 2013-PresentB.S., Finance, cum laude, Indiana University
Denise M. Zambardi, IACCPCCO, SVP, Controller, Axiom International Investors, 2002-PresentCFO, Red Wolf Capital, 2000-2002VP, Operations, Greenwich Partners, LLC, 1993-2000
AXIOM 26AXIOM
, p , , ,IACCP Certified Compliance ProfessionalCertification in Human Resource Studies, Cornell UniversityB.B.A., Finance, Iona College
Client Service & MarketingWilliam E. Bonner, CFA Sarah PapsunWilliam E. Bonner, CFAVP, Client Service/Marketing, Axiom International Investors, 2013-PresentHead of New Business Development, HomeField Capital, 2005-2012VP, Fixed Income & Equities, JPMorgan, 1992-2005Captain, Pilot, United States Air Force, 1986-1992B.S., Finance, University of Maryland
Sarah PapsunMarketing Associate, Axiom International Investors, 2005-PresentAssistant Media Strategist, Omnicom, 2004-2005Management Trainee, Enterprise Rent-A-Car, 2003-2004B.S., Marketing, Quinnipiac University
Jason E. SpearLindsay R. ChamberlainVP, Client Service/Marketing, Axiom International Investors, 2013-PresentDirector, Institutional Investments, Artio Global Investors, 2008-2013Investor Relations, JPMorgan, 2007-2008Sales Assistant, Bank of America, 2006-2007Project Manager, General Electric, 2004-2006B S B i I f ti T h l l d Vi i i T h
Marketing Associate, Axiom International Investors, 2012-PresentPrime Brokerage Associate, JPMorgan, 2008-2012Prime Brokerage Analyst, Bear Stearns, 2007-2008B.S., Finance, cum laude, Fordham University
Kristen M. TroyM k ti A i t A i I t ti l I t 2013 P tB.S., Business Information Technology, magna cum laude, Virginia Tech
Stephanie ColluraMarketing Associate, Axiom International Investors, 2011-PresentMarketing Analyst, Sterling Stamos Capital Management LP, 2008-2011M.A., Museum Studies, The Fashion Institute of TechnologyB A History magna cum laude Western Connecticut State University
Marketing Associate, Axiom International Investors, 2013-PresentExecutive Assistant, Axiom International Investors, 2012-2013M.A., Teaching, summa cum laude, Sacred Heart UniversityB.S., Marketing, University of Connecticut
Drew L. ZielinskiVP Client Service/Marketing Axiom International Investors 2004-PresentB.A., History, magna cum laude, Western Connecticut State University
Sanja KraljevicMarketing Associate, Axiom International Investors, 2008-PresentB.B.A., International Business & Spanish, cum laude, James Madison University
Shane C. McMahon, CFA
VP, Client Service/Marketing, Axiom International Investors, 2004 PresentDirector of Consultant Relations, Fred Alger Management, 2002-2004Institutional Marketing Manager, Ark Asset Management, 1995-2002M.B.A., with Distinction, University of ConnecticutB.S., Finance & Economics, magna cum laude, Boston College
Shane C. McMahon, CFAVP, Client Service/Marketing, Axiom International Investors, 2008-PresentDirector, Institutional Sales, New York Life Investment Management, 2005-2008VP, Institutional Client Development, BNY Asset Management, 2001-2005VP, Client Management, Deutsche Bank/Bankers Trust, 1995-2001Analyst, Mercer Investment Consulting, 1992-1995B.A., Mathematics & Sociology, Boston University
AXIOM 27AXIOM
Axiom’s Rigorous Monitoring Processis Differentiating
Daily Weekly Monthly
Company Market Returns Review Aggregate Market Industries Countries/Regions/World CharacteristicsMarkets GrowthE i D B l h C il i d iEconomic Data Balance sheets Compilation and reviewPolitical Events Inflation of consensus
Individual Holdings macroeconomicNew Ideas Earnings expectations/revisions
P f li Ch i iPortfolio CharacteristicsNew Ideas Roster
AXIOM 28AXIOM 28
Macroeconomic Trends (page 1 of 2) December 1998 through December 20131
United StatesMostPositive
0
Positive
Growth
Inflation
0
LeastPositive
Inflation
Balance Sheet12/31/0012/31/99 12/31/01
12/31/98 12/31/0212/31/03
12/31/0412/31/05
AsiaMostPositive
EuropeMostPositive
12/31/0612/31/07
12/31/0812/31/09
12/31/1012/31/11
12/31/1212/31/13
00
Axiom Analysis as of 12/31/13
LeastPositive
12/31/98 12/31/0012/31/99 12/31/01
12/31/0212/31/03
12/31/0412/31/05
12/31/98
LeastPositive
12/31/9912/31/00
12/31/0112/31/02
12/31/0312/31/04 12/31/06 12/31/08
12/31/0512/31/06
12/31/07 12/31/0712/31/08
12/31/09 12/31/0912/31/10 12/31/10
12/31/11 12/31/1112/31/12 12/31/12
12/31/1312/31/13
AXIOM 29AXIOM 29
Axiom Analysis as of 12/31/13(1) Summary ranking of data points relating to growth, inflation and national balance sheets. Data points plotted weekly. Low inflation ranked positively.(2) Resource markets include Australia, New Zealand, Canada and South Africa.
Macroeconomic Trends (page 2 of 2) December 1998 through December 20131p g December 1998 through December 2013
Latin AmericaMostPositive
MostPositive
Resource Markets2
0 0
Growth
I fl i
LeastPositive
12/31/0012/31/99 12/31/01
12/31/0212/31/03
12/31/0412/31/05
12/31/9812/31/99 12/31/01
12/31/0212/31/03
12/31/0412/31/05
12/31/9812/31/06 12/31/0612/31/0712/31/07
12/31/08 12/31/0812/31/0012/31/09 12/31/09
12/31/10 12/31/1012/31/11 12/31/11
12/31/12
LeastPositive
09/30/1312/31/12
09/30/13
Inflation
Balance Sheet
Axiom Analysis as of 12/31/13
AXIOM 30AXIOM 30
(1) Summary ranking of data points relating to growth, inflation and national balance sheets. Data points plotted weekly. Low inflation ranked positively.(2) Resource markets include Australia, New Zealand, Canada and South Africa.
International Equity Performance Footnotes (Page 1 of 2)THIS OVERVIEW DOES NOT CONSTITUTE AN OFFERING OF SECURITIES, WHICH CAN ONLY BE MADEBY DELIVERY OF AXIOM’S CONFIDENTIAL OFFERING MEMORANDUM TO QUALIFIED INVESTORS.
1. Axiom International Investors, LLC (Axiom) was founded on September 1, 1998 when a team of investment professionals separated fromColumbus Circle Investors, an affiliate of PIMCO Advisors Holdings, LP.
2. As of December 31, 2013, the International Equity Long Only Composite Performance is for a composite of 8 tax-exempt portfolios (two arecommingled funds) totaling $2 763 3 million in assets which represents approximately 27 77% of overall firm assets This composite (the "Axiomcommingled funds) totaling $2,763.3 million in assets, which represents approximately 27.77% of overall firm assets. This composite (the AxiomComposite") has been managed by Axiom since September 1, 1998 and is invested primarily in international equity securities. For the period July 1,1996 through August 31, 1998 the composite consisted of five or fewer portfolios of Columbus Circle Investors an affiliate of PIMCO AdvisorsHoldings that were managed by Andrew Jacobson with the assistance of other members of the Axiom investment team. From September 1, 1998through February 20, 2000 Axiom continued to manage two portfolios as a sub-advisor to the Circle Trust Company, an affiliate of PIMCO AdvisorsHoldings LP. The Axiom Composite is as of December 31, 2013 and valuation is based on trade date. Cash levels vary depending on a variety offactors including market conditions and investor activity. It should not be assumed that the cash levels presented here will necessarily be maintainedg y p yin the future.
3. Top 10 holdings are for the Axiom International Equity Long Only Composite as of December 31, 2013 It should not be assumed that theinvestment in the securities listed were or will be profitable or that recommendations made in the future will be profitable or equal the performanceof the securities on this list.
4 Th lt t d h fl t hi t i l f d t t f f t f I t t t d i i l l4. The results presented here reflect historical performance and are not a guarantee of future performance. Investment return and principal valuewill fluctuate and may be worth more or less than the original amount when liquidated. In addition you should be aware that:
a) Unless otherwise noted, performance results are presented before management fees but net of brokerage commissions.b) Results assume the reinvestment of dividends and other earnings.c) Returns shown comply with GIPS Performance Presentation Standards for all periods presented and are verified thru 12/31/12.d) Performance results are shown after foreign withholding taxes on dividends, interest and capital gains.e) The Prior Composite and the Axiom Composite consist of investments in countries included in the Morgan Stanley Capital) p p g y p
International (MSCI) All Country World Index Ex US. The MSCI All Country World Index Ex US includes: the MSCIEurope, Australasia and Far East Index (MSCI EAFE Index), the MSCI Emerging Market Index (the MSCI EM Index) and theMSCI Canada Index.
f) The performance of the benchmark indices represented are Gross Dividends for years prior to 2001 and Net Dividends for years2001 to present.
g) The composite was created on July 1, 1996.
AXIOM 31
International Equity Performance Footnotes (Page 2 of 2)THIS OVERVIEW DOES NOT CONSTITUTE AN OFFERING OF SECURITIES, WHICH CAN ONLY BE MADEBY DELIVERY OF AXIOM’S CONFIDENTIAL OFFERING MEMORANDUM TO QUALIFIED INVESTORS.
4. (cont.)h) A client’s return will be reduced by the advisory fees and any other expenses incurred in the management of the investment
advisory account.i) Investment advisory fees are described in Part II of Axiom’s Form ADV.j) An Axiom International client’s return will be reduced by the investment advisory fee and any other expenses the client mayj) An Axiom International client s return will be reduced by the investment advisory fee and any other expenses the client may
incur in the management of its investment advisory account. As a representative example of the effect an investment advisoryfee, compounded over a period of years, could have on the total value of a client's portfolio, consider a $20 million portfolioearning 10% annually. The following figures would represent the hypothetical value of the portfolio at the end of theindicated period, presented gross and net of investment advisory fees (all figures in millions): First Year: Gross $22.00, Net$21.81. Third Year: Gross $26.62, Net $25.95. Fifth Year: Gross $32.21, Net $30.88. The current quoted fee schedule forInternational Equity portfolios (which is used in the representative example) is as follows: 0.85% on the first $25.0 million;q y p ( p p )0.75% over $25.0 million.
5. Results for the “Prior Composite” are for a composite of five or fewer portfolios of Columbus Circle Investors, then an affiliate of PIMCOAdvisors Holdings, that were managed by Andrew Jacobson with the assistance of other members of the Axiom investment team.
6. Results for the “Axiom Composite” are for a composite of the International Equity Long Only Composite (described in #2 above) of AxiomI t ti l I t f d i d d t tit S t b 1 1998International Investors, formed as an independent entity on September 1, 1998.
7. Dispersion of returns within the Axiom International Equity Long-Only Composite, as of December 31, 2012, is 0.33 on an average annualbasis since inception, July 1, 1996.
AXIOM 32
Global Equity Performance Footnotes (Page 1 of 2)THIS OVERVIEW DOES NOT CONSTITUTE AN OFFERING OF SECURITIES, WHICH CAN ONLY BE MADEBY DELIVERY OF AXIOM’S CONFIDENTIAL OFFERING MEMORANDUM TO QUALIFIED INVESTORS.
1. Axiom International Investors, LLC (Axiom) was founded on September 1, 1998 when a team of investment professionals separated fromColumbus Circle Investors, an affiliate of PIMCO Advisors Holdings, LP.
2. As of December 31, 2013, the Axiom Global Equity Composite Performance is for a composite of 10 tax-exempt portfolios (two arecommingled funds) totaling $2 820 0 million in assets which represents approximately 28 34% of total firm assets; and 4 taxable portfolioscommingled funds) totaling $2,820.0 million in assets, which represents approximately 28.34% of total firm assets; and 4 taxable portfoliostotaling $1,252.1 million which represents 12.58% of total assets; for a total of $4,072.1 million, representing 40.92% of overall firm assets.Accounts not held for an entire period and Axiom’s Global ex-Japan portfolio are not included in the composite calculations. There are nomaterial philosophical or procedural differences in the manner in which the model and live portfolios were/are managed. Thiscomposite (the “Global Composite”) has been managed by Axiom since October 1, 2002 and is invested primarily in global equity securities.The Global Composite is as of December 31, 2013 and valuation is based on trade date. Cash levels vary depending on a variety of factorsincluding market conditions and investor activity. It should not be assumed that the cash levels presented here will necessarily be maintained ing y p ythe future.
3. Top 10 holdings are for the Axiom Global Equity Composite as of December 31, 2013. It should not be assumed that the investment in thesecurities listed were or will be profitable or that recommendations made in the future will be profitable or equal the performance of thesecurities on this list.
4 Th lt t d h fl t hi t i l f d t t f f t f I t t t d i i l l4. The results presented here reflect historical performance and are not a guarantee of future performance. Investment return and principal valuewill fluctuate and may be worth more or less than the original amount when liquidated. In addition you should be aware that:
a) Unless otherwise noted, performance results are presented before management fees but net of brokerage commissions.b) Results assume the reinvestment of dividends and other earnings.c) Returns shown comply with GIPS Performance Presentation Standards for all periods presented and are verified thru
12/31/12.d) Performance results are shown after foreign withholding taxes on dividends, interest and capital gains.d) Performance results are shown after foreign withholding taxes on dividends, interest and capital gains.e) The Axiom Global Equity Composite consists of investments in countries included in the Morgan Stanley Capital
International (MSCI) All Country World Index. The MSCI All Country World Index is a free float-adjusted marketcapitalization index that is designed to measure equity market performance in the global developed and emerging markets. Asof June 2013 the MSCI All Country World Index consisted of the following 47 developed and emerging market countryindices: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland,France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Luxembourg, Macau,
AXIOM 33
Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Peru, Philippines, Poland, Portugal, Russia, Singapore,South Africa, [South] Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Kingdom and the UnitedStates.
Global Equity Performance Footnotes (Page 2 of 2)THIS OVERVIEW DOES NOT CONSTITUTE AN OFFERING OF SECURITIES, WHICH CAN ONLY BE MADEBY DELIVERY OF AXIOM’S CONFIDENTIAL OFFERING MEMORANDUM TO QUALIFIED INVESTORS.
4. (cont.)f) The performance of the benchmark indices represented are Net Dividends.g) The model portfolio composite was created on October 1, 2002. The live portfolio composite launched July 1, 2004.h) A client’s return will be reduced by the advisory fees and any other expenses incurred in the management of the investment
advisory accountadvisory account.i) Investment advisory fees are described in Part II of Axiom’s Form ADV.j) An Axiom International client’s return will be reduced by the investment advisory fee and any other expenses the client may
incur in the management of its investment advisory account. As a representative example of the effect an investment advisoryfee, compounded over a period of years, could have on the total value of a client's portfolio, consider a $20 million portfolioearning 10% annually. The following figures would represent the hypothetical value of the portfolio at the end of the indicatedperiod, presented gross and net of investment advisory fees (all figures in millions): First Year: Gross $22.00, Net $21.82.p , p g y ( g ) ,Third Year: Gross $26.62, Net $25.99. Fifth Year: Gross $32.21, Net $30.95. The current quoted fee schedule for GlobalEquity portfolios (which is used in the representative example) is as follows: 0.80% on the first $25 million; 0.70% on the next$50 million; 0.60% on the next $150 million; 0.50% on the next $250 million; 0.30% on the balance as described in Part II ofForm ADV.
AXIOM 34
U.S. Small Cap Equity Performance FootnotesTHIS OVERVIEW DOES NOT CONSTITUTE AN OFFERING OF SECURITIES, WHICH CAN ONLY BE MADEBY DELIVERY OF AXIOM’S CONFIDENTIAL OFFERING MEMORANDUM TO QUALIFIED INVESTORS.
1. Axiom International Investors, LLC (Axiom) was founded on September 1, 1998 when a team of investment professionals separated fromColumbus Circle Investors, an affiliate of PIMCO Advisors Holdings, LP.
2. As of December 31, 2013, the Axiom U.S. Small Cap Equity Portfolio Performance is for a composite of 3 tax-exempt portfolios (one ai l d f d) li $124 0 illi i i 1 2 % f ll fi hi i ( h “ S S ll C icommingled fund) totaling $124.0 million in assets, representing 1.25% of overall firm assets. This composite (the “U.S. Small Cap Equity
Portfolio") has been managed by Axiom since September 1, 2006 and is invested primarily in U.S. Small Cap equity securities. The Axiom U.S.Small Cap Equity Composite is as of December 31, 2013 and valuation is based on trade date. Cash levels vary depending on a variety of factorsincluding market conditions and investor activity. It should not be assumed that the cash levels presented here will necessarily be maintained in thefuture.
3 Top 10 holdings are for the Axiom U S Small Cap Equity Portfolio as of December 31 2013 It should not be assumed that the investment in the3. Top 10 holdings are for the Axiom U.S. Small Cap Equity Portfolio as of December 31, 2013. It should not be assumed that the investment in thesecurities listed were or will be profitable or that recommendations made in the future will be profitable or equal the performance of the securitieson this list.
4. The results presented here reflect historical performance and are not a guarantee of future performance. Investment return and principalvalue will fluctuate and may be worth more or less than the original amount when liquidated. In addition you should be aware that:
a) Unless otherwise noted, performance results are presented before management fees but net of brokerage commissions.b) Results assume the reinvestment of dividends and other earnings.c) Performance presented is representative of a composite of IPO eligible investors. Axiom calculates a second composite for non-
IPO eligible investors.d) Returns shown comply with GIPS Performance Presentation Standards for all periods presented and are verified thru 12/31/12.e) The performance of the benchmark represented is gross dividends.f) The composite was created on September 1, 2006.g) A client’s return will be reduced by the advisory fees and any other expenses incurred in the management of the investmentg) A client s return will be reduced by the advisory fees and any other expenses incurred in the management of the investment
advisory account.h) Investment advisory fees are described in Part II of Axiom’s Form ADV.i) An Axiom International client’s return will be reduced by the investment advisory fee and any other expenses the client may
incur in the management of its investment advisory account. As a representative example of the effect an investment advisory fee,compounded over a period of years, could have on the total value of a client's portfolio, consider a $20 million portfolio earning10% annually. The following figures would represent the hypothetical value of the portfolio at the end of the indicated period,
AXIOM 35
y g g p yp p ppresented gross and net of investment advisory fees (all figures in millions): September 1, 2006 - December 31, 2013: Gross$40.23, Net $38.03. The current quoted fee schedule for the U.S. Small Cap Equity portfolio (which is used in the representativeexample) is as follows: 0.80% on the first $10 million; 0.75% on the next $15 million; 0.70% over $25 million.
Emerging Markets Equity Performance FootnotesTHIS OVERVIEW DOES NOT CONSTITUTE AN OFFERING OF SECURITIES, WHICH CAN ONLY BE MADEBY DELIVERY OF AXIOM’S CONFIDENTIAL OFFERING MEMORANDUM TO QUALIFIED INVESTORS.
1. Axiom International Investors, LLC (Axiom) was founded on September 1, 1998 when a team of investment professionals separated fromColumbus Circle Investors, an affiliate of PIMCO Advisors Holdings, LP.
2. As of December 31, 2013, the Axiom Emerging Markets Equity Composite Performance is for a composite of 11 portfolios for a total of$2 079 4 illi i 20 89% f ll fi 4 f li ( f hi h i i l d f d) li $468 1$2,079.4 million, representing 20.89% of overall firm assets; 4 portfolios (one of which is a commingled fund) are tax-exempt totaling $468.1million in assets, which represents approximately 4.70% of total firm assets; and 7 portfolios are taxable totaling $1,611.3 million in assets,which represents approximately 16.19% of total firm assets. This composite (the "Axiom Emerging Markets Equity Long Only Composite")has been managed by Axiom since August 1, 2007 and is invested primarily in Emerging Markets Equity Long Only securities. The AxiomEmerging Markets Equity Long Only Composite is as of December 31, 2013 and valuation is based on trade date. Cash levels varydepending on a variety of factors including market conditions and investor activity. It should not be assumed that the cash levels presented herewill necessarily be maintained in the future.will necessarily be maintained in the future.
3. Top 10 holdings are for the Axiom Emerging Markets Equity Fund (Long Only) as of December 31, 2013. It should not be assumed that theinvestment in the securities listed were or will be profitable or that recommendations made in the future will be profitable or equal theperformance of the securities on this list.
4. The results presented here reflect historical performance and are not a guarantee of future performance. Investment return and principal valuewill fluctuate and may be worth more or less than the original amount when liquidated. In addition you should be aware that:
a) Unless otherwise noted, performance results are presented before management fees but net of brokerage commissions.b) Results assume the reinvestment of dividends and other earnings.c) Returns shown comply with GIPS Performance Presentation Standards for all periods presented and are calculated by Axiom
utilizing their internal portfolio management accounting system. Composite returns for the Axiom Emerging Markets EquityLong Only Composite will be audited at the end of each calendar year.
d) Performance results are shown after foreign withholding taxes on dividends interest and capital gainsd) Performance results are shown after foreign withholding taxes on dividends, interest and capital gains.e) The performance of the benchmark indices represented are Net Dividends.f) The composite was created on August 1, 2007.g) A client’s return will be reduced by the advisory fees and any other expenses incurred in the management of the investment
advisory account.h) Investment advisory fees are described in Part II of Axiom’s Form ADV.i) An Axiom client’s return will be reduced by the investment advisory fee and any other expenses the client may incur in the
AXIOM 36
management of its investment advisory account. The current quoted fee schedule for Axiom Emerging Markets Equity Fund(Long Only) is as follows: 1.00% on the first $25 million; 0.90% on the next $75 million; 0.80% on the next $25 million;0.70% on the next $50 million and 0.60% on the balance.
Long-Short Equity Strategies Performance FootnotesTHIS OVERVIEW DOES NOT CONSTITUTE AN OFFERING OF SECURITIES, WHICH CAN ONLY BE MADEBY DELIVERY OF AXIOM’S CONFIDENTIAL OFFERING MEMORANDUM TO QUALIFIED INVESTORS.
1. For the Axiom International Opportunity Fund, calculations reflect fees of 1% management fee and 10% incentive fee from 01/01/1999-12/31/2000 and fees of 1% management fee and 20% incentive fee from 01/01/2001-09/30/2005. From 10/01/2005 going forward, net of fee calculations will be 2% management fee and 20% incentive fee (if applicable).
2 h A i i l i C d f 9/1/2004 9/30/200 1 % f d 20% i i f ff i 10/1/200 2%2. For the Axiom International Micro-Cap Fund, from 9/1/2004-9/30/2005, 1.5% management fee and 20% incentive fee. Effective 10/1/2005, 2% management fee and 20% incentive fee (if applicable).
3. For the Axiom Global Micro-Cap Fund, effective February 1, 2007, 2% management fee and 20% incentive fee (if applicable).
4. Past performance is no guarantee of future results.
5. Returns are computed on a compounded cumulative basis and reflect the use of leverage.
6. The Partnership is audited annually as of the end of each calendar year (12/31).
7. Net returns for any specific investor may and do vary from a 2% management fee and 20% incentive fee limited partner.
8. Returns do not reflect the accrual of any prime brokerage expenses, interest expenses, professional fees, and other miscellaneous expenses.
9. The index that the Axiom International Opportunity Fund utilizes for performance comparison purposes is the MSCI All Country World Ex-US (with dividends reinvested net of withholding taxes). The Bloomberg Ticker for this index is MXWDU.
10. The index that the Axiom International Micro-Cap Fund utilizes for performance comparison purposes is the MSCI World Ex US Small Cap(with dividends reinvested net of withholding taxes) The Bloomberg Ticker for this index is NCUDWXUS(with dividends reinvested net of withholding taxes). The Bloomberg Ticker for this index is NCUDWXUS.
11. The index that the Axiom Global Micro-Cap Fund utilizes for performance comparison purposes is the MSCI World Small Cap(with dividends reinvested net of withholding taxes). The Bloomberg Ticker for this index is MXWOSC.
12. Portfolio Statistics, Portfolio Summary, Top 10 Holdings, and Sector and Region Exposure are as of December 31, 2013.
AXIOM 37