Kayne Anderson Rudnick Investment Management, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).
Kayne Anderson Rudnick Investment Management, LLC, a wholly owned subsidiary of Phoenix Investment Partners, Ltd., is a registered investment adviser under the Investment
Advisors Act of 1940. Kayne Anderson Rudnick Investment Management, LLC manages a variety of equity and fixed-income strategies focusing exclusively on securities the firm
defines as high quality. Additional information regarding the firm’s policies and procedures for calculating and reporting performance is available upon request. The firm
maintains a complete list and description of composites, which is available upon request.
The composite is defined as all fully discretionary, non-wrap fee Large Cap Value Portfolios (including cash) under management for at least one full quarter. The minimum
account size for this composite is $250,000. For comparison purposes, the composite is measured against the Russell 1000® Value Index. The Russell 1000® Value Index is a
market capitalization-weighted index of value-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises of the 3,000 largest U.S. companies. The
index is calculated on a total-return basis with dividends reinvested. The composite was created in October 1994. There was a change in personnel in January 1998, December
1999, January 2000, October 2003, and December 2005. No alteration of the composite as presented here has occurred because of these changes.
Prior to July 1, 2004, the composite represented all non-taxable, fully discretionary Large Cap Value Portfolios (including cash) under management for at least one full quarter.
Beginning July 1, 2004, results include only eligible portfolios of at least $250,000, from October 1, 1994 to June 30, 2004, only eligible portfolios of at least $500,000 are
included in the composite.
The performance information is supplied for reference. Past performance is no guarantee of future results. Results will vary among accounts. The U.S. dollar is the currency
used to express performance. Returns are presented gross of management fees and net of transaction fees and include the reinvestment of all income. Trade date accounting
is used. Performance has been calculated by geometrically linking monthly returns with accounts entering and exiting the composite quarterly.
Gross annual returns will be reduced by investment management fees and other expenses that may be incurred in the management of the account. Net annual returns have
been calculated after the deduction of an assumed maximum annual fee of 1%. The effect on performance would grow at a compounded rate. Over a five year period, if a
$250,000 portfolio had an annual return of 10%, it would grow to $402,628. The net compounded effect of a 1% annual investment management fee would total $17,972 and
result in a portfolio value of $384,656. A fee schedule is available upon request and is described in Part II of the firm’s ADV.
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