Massachusetts Water Resources Authority (“MWRA”) Employees’ Retirement System
APPENDIX
Disclosures
investor's interest in an unregistered pooled investment fund and none should be expected to develop. There are restrictions on transferring interests in an unregistered pooled investment fund. The
instruments in which an unregistered pooled investment fund invests may involve complex tax structures and there may be delays in distributing important tax information. Certain of the trades
executed for an unregistered pooled investment fund may take place on foreign markets, which inherently involves a greater degree of risk. An unregistered pooled investment fund is subject to
various other risk factors and conflicts of interest. For further information regarding the risk factors and conflicts of interest with respect to an unregistered pooled investment fund in which you
propose to invest or currently invest, please refer to the unregistered pooled investment fund's offering memorandum.
This document may be issued in the United Kingdom by Select Equity Group, L.P. to, and/or directed at, only persons to or at whom it may lawfully be issued or directed under the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005, including persons who are authorized under the Financial Services and Markets Act 2000 ("FSMA"), certain persons having professional
experience in matters relating to investments, high net worth companies, high net worth unincorporated associations or partnerships, trustees of high value trusts or persons who qualify as
certified sophisticated investors. Interests in the Fund are only available to such persons in the United Kingdom and this document must not be relied or acted upon by any other persons in the
United Kingdom. In order to qualify as a certified sophisticated investor a person must: (a) have a certificate in writing or other legible form signed by an authorized person to the effect that he is
sufficiently knowledgeable to understand the risks associated with a particular type of investment; and (b) have signed, within the last 12 months, a statement in a prescribed form declaring,
amongst other things, that he qualifies as a sophisticated investor in relation to such investments. This document is exempt from the general restriction in Section 21 of FSMA on the
communication of invitations or inducements to engage in investment activity on the grounds that it is being issued to and/or directed at only the types of person referred to above. The content of
this document has not been approved by an authorized person and such approval is, save where this document is directed at or issued to the types of person referred to above, required by Section 21
of FSMA. An investment in the Fund may expose an investor to a significant risk of losing all of the amount invested. The Fund is a Limited Partnership (while offshore funds are Limited Companies)
and any person who acquires interests in the Fund will not thereby be exposed to any significant risk of incurring additional liability. Any person who is in any doubt about investing in the Fund
should consult an authorized person specializing in advising on such investments.
Please note the returns presented are inclusive of both the restricted and non-restricted interest/share classes. Performance between the restricted and non-restricted classes may differ due to
allocations of new issues. Additional information regarding the allocation of specific IPOs, and their effect on the restricted and non-restricted interest/share class performance, is available upon
request.
The Funds may invest in debt securities, options, privately negotiated derivative instruments and other private transactions and, as of the date of this report, may currently be invested in these
instruments. Exposure to these instruments may not be reflected in the data presented in this report (e.g., certain named securities may be owned via swap).
APPLICABLE TO SEG PARTNERS ONLY:
Unless otherwise stated, performance results for an individual Fund reflect the performance earned by a Fund investor inclusive of loss carry forward, if applicable, under a model fee structure of the
highest fee structure in place for the respective fiscal years. The Fund's performance is presented net of an annualized base management fee of 1% of net asset value charged monthly in arrears and
a performance allocation/fee of 15% (from 1998 through 2001) and 20% (from 2002-thereafter) of profits. Individual investor performance as well as the aggregate performance of each Fund may
differ from the performance reflected herein. Actual management fees for the Funds were charged quarterly in advance through 2009 and monthly in arrears from 2010 onwards.
APPLICABLE TO THE GREAT JONES FUNDS ONLY:
Modeled since inception to date the net performance numbers, unless otherwise stated, are presented net of an annualized base management fee of 0.5% of asset value charged monthly in arrears
and a performance allocation/fee of 15% over the S&P 500 ("the Hurdle"). The performance allocation/fee is applied on a year-by-year basis. The Hurdle is calculated on a cumulative basis and the
underperformance relative to the Hurdle (if any) from prior year(s) is included in the performance allocation/fee calculation. Prior to September 2017 performance was modeled under a different
methodology that used the highest fee on offer during the applicable measurement periods. We believe the inclusion of multiple fee structures (only one of which is currently on offer), while
conservative, is of limited utility to current and prospective investors as no single investor could have experienced such a performance history since inception. We believe the consistent application
of a singular fee structure (that is currently on offer and which the great majority of our existing investors have selected) would be more relevant and useful to both current and prospective
investors. The prior performance calculation methodology is discussed in the following paragraph.
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