Small Cap Growth Portfolio (Institutional)

Managers

Todd Beiley, CFA Head of Research, Portfolio Manager and Senior Research Analyst

Jon K. Christensen, CFA Portfolio Manager and Senior Research Analyst

Introduction

Highlights

Top Five Holdings

Sector Diversification

Portfolio Characteristics

Historical Returns

Performance Statistics

The KAR Small Cap Growth Portfolio is a domestic small-cap portfolio that invests in high-quality growth companies and purchased at attractive valuations. It is a high-conviction strategy that utilizes a bottom-up fundamental research approach to identify what we believe are the best companies at the most attractive prices within the high-quality universe.

Highlights

Asset Class: Small Cap Equity
Primary Index: Russell 2000 Growth Index
Inception Date: January 1, 1998
Holdings Range: 20-40

Sector Constraint: Seek broad diversification, but no sector constraints
Non-U.S. Holdings: Up to 20%
Portfolio Turnover: 25% – 35%

Top Five Holdings

As of September 30, 2024

This report is based on the assumptions and analysis made and believed to be reasonable by Advisor. However, no assurance can be given that Advisor’s opinions or expectations will be correct. This report is intended for informational purposes only and should be not considered a recommendation or solicitation to purchase securities. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Data is obtained by FactSet Research Systems and is assumed to be reliable. Numbers may not always add up due to rounding. **Past performance is no guarantee of future results.**
Company	Percent of equity (%)
Ryan Specialty Holdings	9.3
AAON	8.9
Morningstar	7.7
Auto Trader Group	7.3
ServisFirst Bancshares	5.4
Total	38.8

Sector Diversification

As of September 30, 2024

Communication Services

Consumer Discretionary

Consumer Staples

Energy

Financials

Health Care

Industrials

Information Technology

Materials

Real Estate

Utilities

10%

20%

30%

40%

50%

KAR Small Cap Growth

Russell 2000^® Growth Index

Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. The sector information represented above is based on GICS sector classifications. Data is obtained by FactSet Research Systems and is assumed to be reliable.

Portfolio Characteristics

As of September 30, 2024

*Free cash flow data is as of [prior quarter end date]. Prices are as of [quarter end date]. Excludes financials.

KAR utilizes the interquartile method when calculating Debt/EBITDA. The interquartile method excludes outliers from an aggregate statistic such as weighted average. The interquartile method does not assume that data from the top or bottom of the distribution are outliers–only the extreme ends are excluded–and that it can be applied consistently as a quantitative method for most fundamental characteristics. Debt/EBITDA utilizes net debt for the calculation.
This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small Cap Growth fact sheet. Data is obtained from FactSet Research Systems and BNY Mellon and is assumed to be reliable. Other principal consultant firms may use different algorithms to calculate selected statistics. Estimates are based on certain assumptions and historical information. **Past performance is no guarantee of future results.** Returns could be reduced, or losses incurred, due to currency fluctuations.
Concept	KAR Small Cap Growth	Russell 2000^® Growth Index
Quality
Return on Equity-Past 5 Years	18.5%	9.9%
Debt/EBITDA	1.0x	1.4x
Earnings Variability-Past 10 Years	48.8%	82.2%
Growth
Earnings Per Share Growth-Past 10 Years	13.4%	11.8%
Capital Generation--[ROE x (1-Payout)]	14.3%	8.8%
Value
P/E Ratio-Trailing 12 Months	44.0x	163.1x
Free Cash Flow Yield*	3.0%	1.6%
Market Characteristics
$ Weighted Average Market Cap-3 Year Avg	$6.1 B	$3.8 B
Largest Market Cap-3 Year Avg	$18.8 B	$17.8 B

Historical Returns (Institutional)

*January 1, 1998

†All periods less than one year are total returns and are not annualized. Returns are final.

‡Net of all fees and expenses. Assumes a 0.90% annual fee. Fees presented on the Disclosure page of the KAR Small Cap Growth fact sheet could vary from the assumed fee in the net-of-fee calculation, as actual fees paid by a particular client account differ depending on a variety of factors including, but not limited to, business unit and size of mandate. The fee used on the Disclosure page of the KAR Small Cap Growth fact sheet utilizes an assumed maximum fee across the firm’s business units, which is further detailed on that page.

This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small Cap Growth fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Small Cap Growth fact sheet. Data is obtained from FactSet Research Systems and is assumed to be reliable. **Past performance is no guarantee of future results.** Returns could be reduced, or losses incurred, due to currency fluctuations.
Period	KAR Small Cap Growth (gross)	KAR Small Cap Growth (net)^‡	Russell 2000^® Growth Index
Annualized Returns (%)^† As of September 30, 2024
3rd Quarter	13.66	13.41	8.41
Year to Date	10.34	9.61	13.22
1 Year	17.21	16.17	27.66
3 Year	(1.45)	(2.34)	(0.35)
5 Year	9.45	8.48	8.82
7 Year	13.57	12.56	7.60
10 Year	16.56	15.52	8.95
Inception*	11.24	10.25	6.84
Annual Returns (%)
2023	21.43	20.36	18.66
2022	(29.37)	(30.03)	(26.36)
2021	5.69	4.75	2.83
2020	44.70	43.44	34.63
2019	41.37	40.13	28.48
2018	10.69	9.70	(9.31)
2017	39.03	37.82	22.17
2016	26.11	25.00	11.32
2015	2.57	1.65	(1.38)
2014	6.47	5.52	5.60
2013	39.89	38.67	43.30
2012	13.29	12.28	14.59
2011	17.82	16.78	(2.91)
2010	14.82	13.80	29.09
2009	38.51	37.30	34.47
2008	(33.61)	(34.23)	(38.54)
2007	(0.59)	(1.48)	7.05
2006	15.80	14.78	13.35
2005	1.88	0.97	4.15
2004	12.82	11.82	14.31
2003	38.44	37.23	48.54
2002	(23.82)	(24.52)	(30.26)
2001	0.48	(0.42)	(9.23)
2000	6.28	5.33	(22.43)
1999	31.19	30.04	43.09
1998	3.33	2.40	1.23

Performance Statistics (Institutional)

Inception^* to September 30, 2024

*January 1, 1998

This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Small Cap Growth fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Small Cap Growth fact sheet. **Past performance is no guarantee of future results.** Returns could be reduced, or losses incurred, due to currency fluctuations.
Concept	KAR Small Cap Growth (gross)	KAR Small Cap Growth (net)	Russell 2000^® Growth Index
Alpha	5.47	4.52	0.00
Sharpe Ratio	0.49	0.44	0.21
Information Ratio	0.38	0.29	N/A
Beta	0.70	0.70	1.00
Downside Capture	65.49	66.84	100.00
Tracking Error	11.69	11.69	N/A

Small Cap Growth Portfolio (Institutional)

Managers

Top Five Holdings

Company

Percent of equity (%)

Sector Diversification

Portfolio Characteristics

KARSmall CapGrowth

Russell 2000®Growth Index

Historical Returns (Institutional)

KAR Small CapGrowth(gross)

KAR Small CapGrowth(net)‡

Russell 2000®Growth Index

Performance Statistics (Institutional)

KAR Small CapGrowth (gross)

KAR Small CapGrowth (net)

Russell 2000®Growth Index

KAR
Small Cap
Growth

Russell 2000^®
Growth Index

KAR Small Cap
Growth
(gross)

KAR Small Cap
Growth
(net)^‡

Russell 2000^®
Growth Index

KAR Small Cap
Growth (gross)

KAR Small Cap
Growth (net)

Russell 2000^®
Growth Index