SMID-Cap Growth Fund

INVESTMENT OBJECTIVE

The Jackson Square SMID-Cap Growth Fund (the “Fund” or the “SMID-Cap Growth Fund”) seeks long-term capital appreciation.

INVESTMENT PHILOSOPHY

Jackson Square Partners (“Jackson Square”) is a growth investor but the team is not bound by consensus definitions of growth. Jackson Square believes that attractive returns can be realized by maintaining a concentrated portfolio of companies that have superior business models, strong cash flows and the opportunity to generate consistent, long-term growth of intrinsic business value. The SMID-Cap growth product invests, at the time of purchase, in companies with an equity capitalization of less than $7.5 billion. Positions generally graduate from the portfolio around $15 billion.

Key Tenets of Jackson Square Partners' Philosophy

Concentration - In Jackson Square’s view, portfolios should be constructed with a strong emphasis on the highest-conviction companies in a manager’s coverage universe. This is done with a keen focus on both the risk and the reward of each holding. The number of holdings is typically 25-35, although from time to time the fund may hold fewer or more holdings.

Consistent, long-term investment horizon - Jackson Square generally holds companies with steady, consistent business models and end markets, and prefers to hold them for three to five years or longer.

Intrinsic business value focus - While Jackson Square, like other growth investors, invests with the expectation of attractive revenue and earnings growth from the companies it holds, a company’s cash economics – its returns on invested capital and its ability to generate free cash flow, i.e., its intrinsic business value – is key to Jackson Square’s evaluation.

Key areas of Differentiation

  • Jackson Square is benchmark agnostic, holding a concentrated, conviction weighted portfolio.
  • Jackson Square emphasizes growth in intrinsic business value as opposed to more traditional definitions of growth that are often restricted to revenue and reported earnings. Cash generation and return on invested capital are more important to us than accounting earnings.
  • Jackson Square has a flat team structure with a stable, veteran team which values high levels of accountability and internal peer scrutiny. While members of the team may have portfolio management responsibilities, everyone on the team is first and foremost an analyst.
  • Jackson Square’s concentrated portfolio approach limits asset capacity in all strategies, resulting in a performance-driven investment culture.
AS OF TBD QTD YTD 1 Year 3 Year 5 Year 10 Year Since Inception Net Expense Ratio* Gross Expense Ratio
JS SMID-Cap Growth Fund Investor Class (JSMVX)**
TBD TBD TBD TBD TBD TBD TBD 1.22% 1.24%
JS SMID-Cap Growth Fund Inst. Class (JSMTX)**
TBD TBD TBD TBD TBD TBD TBD 0.97% 0.99%
JS SMID-Cap Growth Fund IS Class (DCGTX)
TBD TBD TBD TBD TBD TBD TBD 0.87% 0.89%
Russell 2500® Growth Index
TBD TBD TBD TBD TBD TBD TBD - -
AS OF TBD MTD QTD YTD 1 Year 3 Year 5 Year 10 Year Since Inception Net Expense Ratio* Gross Expense Ratio
JS SMID-Cap Growth Fund Investor Class (JSMVX)**
TBD TBD TBD TBD TBD TBD TBD TBD 1.22% 1.24%
JS SMID-Cap Growth Fund Inst. Class (JSMTX)**
TBD TBD TBD TBD TBD TBD TBD TBD 0.97% 0.99%
JS SMID-Cap Growth Fund IS Class (DCGTX)
TBD TBD TBD TBD TBD TBD TBD TBD 0.87% 0.89%
Russell 2500® Growth Index
TBD TBD TBD TBD TBD TBD TBD TBD - -

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling 1-415-635-0208. Short-term performance, in particular, is not a good indication of the fund's future performance, and an investment should not be made based solely on returns.

*The adviser has contractually agreed to reduce management fees and reimburse operating expenses until 2/28/20.

**Returns shown are for the IS Class shares of the Fund. Pursuant to an Agreement and Plan of Reorganization between Managed Portfolio Series, on behalf of the Fund, and Delaware Pooled Trust on behalf of The Focus Smid-Cap Growth Equity Portfolio (the "Predecessor Fund"), the Fund acquired all of the assets and liabilities of the Predecessor Fund in exchange for IS Class shares of the Fund on September 19, 2016 (the "Reorganization"). The IS Class of the Fund had no operations prior to the Reorganization. The Predecessor Fund was a series of Delaware Pooled Trust, a registered open- end investment company. As a result of the Reorganization, the Fund will be the accounting successor of the Predecessor Fund. Prior to September 19, 2016, the Adviser served as sub-adviser to the Predecessor Fund. The IS Class performance has not been restated to reflect any differences in expenses paid by the Predecessor Fund and those paid by the Fund. Performance shown for the periods prior to the inception of the Institutional Class and Investor Class is based on the performance of the IS Class shares, adjusted for the higher expenses applicable to that class.

Since Inception returns for all indices are as of the fund's IS class inception date.

CHARACTERISTICS (As of December 31, 2018)
Fund  
Total Assets Under Management $525.5m
Number of Holdings 30
Annual Turnover 47%
Median Market Cap 4,417
Weighted Av. Market Cap 4,468
EPS Growth Rate (weighted average 5 yr) 8.89
PE Ratio (weighted average forward 12 months) 25.4
P/B Ratio 2.9
ROE 8.07
Active Share 96.74
Composition  
Equity 98.2%
Cash 0.8%
TOP 10 HOLDINGS (As of December 31, 2018)
Fund Industry %
Equity Commonwealth - REIT Financial Services 6.51%
LiveRamp Holdings Technology 6.00%
New York Times - Class A Consumer Discretionary 5.90%
j2 Global Utilities 5.48%
Bio-Techne Health Care 4.95%
Liberty TripAdvisor Holdings - Series A Consumer Discretionary 4.71%
Dunkin' Brands Group Consumer Discretionary 4.38%
Cars.com Consumer Discretionary 4.00%
LendingTree Financial Services 3.95%
Paycom Software Technology 3.98%
Total 49.77%

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Kenneth F. Broad, CFA
Portfolio Manager, Research Analyst

Kenneth F. Broad, CFA

Portfolio Manager, Research Analyst

Kenneth F. Broad became a member of Jackson Square Partners, at its inception in May 2014 as a portfolio manager and research analyst. Prior to joining Jackson Square, he was a portfolio manager and equity analyst on the Delaware Investments Focus Growth Equity team from April 2005 to April 2014. Prior to Delaware Investments, he was a principal and portfolio manager at Transamerica Investment Management, where he managed sub-advised funds and institutional separate accounts. Before joining Transamerica in 2000, he was a portfolio manager with The Franklin Templeton Group and was a consultant in the business valuation and merger and acquisition group at KPMG Peat Marwick. He received an MBA from the University of California at Los Angeles and his bachelor’s degree in economics from Colgate University.

Christopher J. Bonavico, CFA
Portfolio Manager, Research Analyst

Christopher J. Bonavico, CFA

Portfolio Manager, Research Analyst

Christopher J. Bonavico became a member of Jackson Square Partners, at its inception in May 2014 as a portfolio manager and research analyst. Prior to joining Jackson Square, he was a portfolio manager and equity analyst on the Delaware Investments Focus Growth Equity team from April 2005 to April 2014. Prior to Delaware Investments, he was a principal and portfolio manager at Transamerica Investment Management, where he managed sub-advised funds and institutional separate accounts. Before joining Transamerica in 1993, he was a research analyst for Salomon Brothers. Bonavico received his bachelor’s degree in economics from the University of Delaware.

Ian D. Ferry
Portfolio Manager, Research Analyst

Ian D. Ferry

Portfolio Manager, Research Analyst

Ian D. Ferry became a member of Jackson Square Partners, at its inception in May 2014 as a portfolio manager and research analyst. Prior to joining Jackson Square, he was a portfolio manager and equity analyst on the Delaware Investments Focus Growth Equity team from November 2011 to April 2014. Prior to joining Delaware Investments, he was an equity research analyst with Fidelity from August 2010 to October 2011. Before that, he completed an internship as an analyst with Carlson Capital in summer 2009. Previously, he worked with HarbourVest Partners from 2005 to 2008 in its private equity group, where he analyzed and completed growth equity investments and leveraged buyouts for the firm. Ferry began his career with Houlihan Lokey in 2004 as a financial analyst. He earned a bachelor’s degree in finance from Tulane University. Ferry also earned an MBA, with a concentration in management, from The Wharton School of the University of Pennsylvania in 2010.

Fees & Expenses JSMVX
Investor Class
JSMTX
Inst. Class
DCGTX
IS Class
Annual Operating Expenses
Management Fees 0.75% 0.75% 0.75%
Distribution 0.25% 0.00% 0.00%
Shareholder Servicing Fee 0.10% 0.10% 0.00%
Other Expenses 0.18% 0.18% 0.18%
Total 1.24% 0.99% 0.89%
Fee Waiver (0.06%) (0.06%) (0.06%)
Total After Waiver 1.22% 0.97% 0.87%

The adviser has contractually agreed to reduce management fees and reimburse operating expenses until 2/28/20.

Total expenses include expenses related to acquired funds fees and expenses of 1 basis point.