NZS Capital, LLC

Global Equity Growth Unconstrained Strategy

Q2 2020

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For professional and institutional investors only. Not for retail investors.
NZS: Global Equity Growth Unconstrained Strategy
Our approach
Philosophy
NZS Capital seeks to invest in innovative
growth companies. We draw from our deep
experience analyzing disruption and
adaptability, with a team-centric approach,
to identify long-duration growth businesses
capable of thriving in the digital transition
of the global economy. The firm is
dedicated to Non-Zero-Sum, or win-win,
outcomes for our clients.
For professional and institutional investors only. Not for retail investors.
Differentiated approach for differentiated era
● We redefine the conventional approach to evaluating companies by focusing on a firm’s ability to innovate
and adapt in the digital age
● We believe that the unexpected is much more likely to happen and avoid narrow, single
point predictions
Our approach goes beyond ESG
● We consider a broader definition of corporate responsibility that considers customers, employees, society
and the global environment in addition to shareholders
● As the global economy transitions from the Industrial Age to the Information Age, we believe those
companies that maximize Non-Zero-Sum outcomes will define the new era of economic growth and
prosperity
Investment horizon
We typically take a 10-year view as we analyse opportunities
Portfolio Construction
c. 50-70 stocks balancing Resilience with Optionality
Strategic Partnership
● Jupiter and NZS Capital entered into a strategic partnership in Q1 2020 with Jupiter providing trading,
operational and distribution support to NZS.
● The culture of boutique with the resources of a large firm
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NZS: Global Equity Growth Unconstrained Strategy

120+ 20 22
Brinton Johns Brad Slingerlend investment
investment industry industry
years experience
CFA® years experience

years of Co-founder NZS Capital

Formerly head of the global technology sector team and
Co-founder NZS Capital
Formerly portfolio manager of the Janus Henderson Global
Investment co-portfolio manager of the Janus Henderson Global Technology
Fund.
Technology Fund.

Industry
experience
12 14
Jon Bathgate investment Joe Furmanski investment
industry industry
years experience years experience

Formerly research analyst and co-head of the technology sector team Formerly research analyst, technology and communications, at Janus
at Janus Henderson. Henderson.

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Jim Goff investment

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investment industry
Adam Schor industry years experience
CFA® years experience
Formerly Director of Research for Janus Henderson.
Formerly Director of Global Equity Strategies at Janus Henderson.

Source: NZS as of 3.31.20

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For professional and institutional investors only. Not for retail investors.
Managers’ previous track record

● Managed Janus Henderson Global Technology Fund (JAGTX) from May 2011 – Nov 2018
● Strong relative performance vs peers and index for 1 year, 3 years, 5 years and manager tenure

● Performance data available upon request

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For professional and institutional investors only. Not for retail investors.
The information age changes everything

● Extreme economic transition

● Unprecedented, decades-long period of change for the economy
and planet
● Non-Zero-Sum, or win-win, will dominate the future
● Technology is impacting everything
● Tech is creating a new digital operating system for the economy and
humanity
● Structurally high exposure to innovation makes sense as every
company becomes a tech company
● Picking winners is harder than ever
● Accelerating pace of disruption demands an active approach
● Success will be marked by companies that create significant value,
not just for investors, but for all possible constituents including The Power of Technology: The Hubble Space
employees, customers, society, and the planet Telescope uses a gravitational lens to see the
Sunburst Arc Galaxy 11B light years away

The views expressed are those of the fund manager at the time of preparation and may change in future.
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For professional and institutional investors only. Not for retail investors.
NZS Capital philosophy
We believe in Non-Zero-Sum outcomes

● Non-Zero-Sum is win-win: it means providing more for your

constituents – including investors, employees, customers,
suppliers, society, and the environment – than for yourself.
● Companies that broaden their definition of corporate
responsibility to include this wider base of constituents will
garner a disproportionate share of future economic growth.
● Non-Zero-Sum goes beyond ESG and requires a dedication to
the pursuit and understanding of how to improve the world.
● We seek Non-Zero-Sum outcomes in all our relationships as it
pursues optimal results for our clients.

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For professional and institutional investors only. Not for retail investors.
NZS Capital philosophy

We believe in complex adaptive systems

● Complex adaptive systems develop emergent properties to

adapt; they can respond to the unpredictable
● Tend toward chaotic outcomes with high sensitivity to small
perturbations
● Phase shifts and evolutionary fitness functions
● Constant state of disequilibrium
● We can learn more about the future of a company by studying
ants and bees than business and economics
● Adaptability and collaboration (Non-Zero-Sum) wins

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For professional and institutional investors only. Not for retail investors.
NZS Capital philosophy

We do NOT believe in:

● Predicting the future

● The bad math of normal distributions
● “Style” investing (value, growth, GARP, momentum, etc.)
● Mean reversion
● Pattern recognition and charting
● Expected Utility Theory and Modern Portfolio Theory
● Porter’s Five Forces
● Competitive moats

The traditional bell curve implies equal distributions

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For professional and institutional investors only. Not for retail investors.
NZS Capital philosophy

Power laws dominate complex adaptive systems

● Non-linear outcomes
● Extremes are to be expected
● Exponential changes
● In investing, and nature, extreme events don’t follow normal distribution curves

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For professional and institutional investors only. Not for retail investors.
What complex adaptive systems teach us
NZS Capital philosophy

● Investment returns are non-ergodic: the individual

path through time is not the same as the average
over time
● Avoid narrow predictions and stacked predictions
(parlay bets)
● Focus on broad predictions Flipping a coin should yield 50/50 results,
however, the reality of any individual’s path
● Focus on adaptability above all else through time varies greatly.

Source: Ergodicity Economics, Ole Peters, June 2018, p. 7

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For professional and institutional investors only. Not for retail investors.
We seek adaptable and resilient companies
NZS Capital process

IDEA GENERATION: From extensive contacts and engagement with industry as generate ideas
1 full participants

QUALITY: Long-term focused management teams; adaptability, culture

2 of innovation
research, analyze and debate:

GROWTH: Long-duration s-curves, stacking s-curves, Non-Zero-Sum outcomes,

3 network effects, platform scaling
Quality

Growth

4 CONTEXT: Headwinds and tailwinds; valuation Adaptability

Context
ADAPTABILITY: A company’s ability to adapt is a critical attribute as disruption
5 increases over time

portfolio candidates

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For professional and institutional investors only. Not for retail investors.
We seek resilience and optionality
NZS Capital process

● Narrowing range of outcomes ● Narrow range of outcomes

●
PREDICTIONS

● Broadening predictions Broad and safe predictions

● Positive asymmetry ● Low disruption risk

● Wide range of outcomes ● Widening range of outcomes

● Narrow and specific predictions ● Narrowing predictions

● Negative asymmetry ● Rising disruption risk

DISRUPTION RISK

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For professional and institutional investors only. Not for retail investors.
We seek long-duration growth, stacked S-Curves
NZS Capital process

High valuation

ROOTMO

Value Trap

Resilient

Gambling Optional

Low valuation

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For professional and institutional investors only. Not for retail investors.
We seek Resilience with Out-of-the-Money Optionality
NZS Capital portfolio construction

● We seek to balance Resilience with Optionality

● ROOTMO (Resilience with Out-Of-The-Money Optionality)
● Look for candidates to crossover from Optionality to Resilience
● Force out the middle
● Two portfolios in one

Optionality Resilience
● Wide range of outcomes ● Narrow range of outcomes
● Broadening predictions ● Broad predictions
● ~40-50 smaller positions ● ~10-20 larger positions
● Asymmetry ● Long-duration growth
● Position sizing: <1.5% ● Position sizing: >2.5% ROOTMO
R
R R R
R

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For professional and institutional investors only. Not for retail investors.
We embrace volatility while managing portfolio-level risk
NZS Capital portfolio construction

● Volatility = Opportunity
● Rely less on risk assessments based on “bad math”
(e.g., normal distributions)
● Balance portfolio-level risk: R&O
● Balance position-size risk: Each position contributes
similar fundamental risk to portfolio
● Avoid narrow predictions of the future

Chart is for illustration purposes only in future.

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For professional and institutional investors only. Not for retail investors.
We seek truth through a team-based approach
NZS Capital team

● The investment team operates in a zone of

psychological safety, which enables constructive and
energetic debate
● ABCD: Always Be Connecting Dots
● Bayesian Logic: Consider your point of view to be
temporary
● Identify cognitive bias in other team members’
conclusions
● Pre-mortems to avoid future mistakes of bias or
analysis

Static or fluid?
Our brains process information using shortcuts and tricks
that alter our perception of reality. NZS Capital’s team-
based approach seeks to protect against cognitive biases
in search of objective, evidence-based truths.

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For professional and institutional investors only. Not for retail investors.
Investment Process

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For professional and institutional investors only. Not for retail investors.
For professional and institutional investors only. Not for retail investors.
Coverage

Energy, LOW
Materials,
Utilities,
Real Estate

Consumer Staples

Pace of digital transition

Financials

Health Care

Industrial

Consumer Discretionary

Communications

Technology HIGH

We look across all sectors but focus where the disruption and pace of change are the greatest

The views expressed are those of the fund manager at the time of preparation and may change in future.
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For professional and institutional investors only. Not for retail investors.
Investment team meetings

Twice weekly investment meetings and

Monthly risk reviews
centralized research database

● Engage in energetic debate in ● Employ Jupiter risk tools and analytics

collaborative, high trust environment
● Consider risk exposure relative to
● Review broad industry trends in context investment thesis and portfolio
of portfolio positioning

● Consider evolution of companies and ● Adjust position sizes to reflect risk profiles
predictions around them
● Engages with NZS Chief Risk Officer
● Review portfolio positions in terms of
optionality or resilience

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For professional and institutional investors only. Not for retail investors.
Consider stocks in terms of key elements

Quality Growth Context

● High Quality Management Teams ● Non-Zero-Sumness ● Headwinds/Tailwinds

● Culture of Innovation ● Long Duration S-curves ● Valuation
● Adaptability ● Stacking S-curves ● Nature of Predictions
● Decentralized Decision Making

Amphenol Tesla

Well managed Innovative but uncertain management

Quality Quality
Autonomous business units High adaptability

Large and growing markets Growing into large market

Growth Growth
High value added to customers High NZS: Many winners

Broad and safe prediction: Electronics penetrate Higher valuation

Context deeper into the world Context Narrower and riskier prediction that Tesla platform
dominates as EV replace ICE

The examples listed herein are for illustrative purposes only and should not be construed as investment advice.
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For professional and institutional investors only. Not for retail investors.
Two bifurcated portfolios: Resilience and Optionality

Resilient positions (e.g. Amphenpol) Optionality positions. (e.g. Tesla)

● About 40% to 60% of the portfolio ● 40%-60% of the portfolio
● Fewer, larger positions in companies that are highly ● Smaller positions in companies with a broader
adaptive in the face of disruption predictions around paths to success
● Stable, long-term investments ● Range of predictions narrowing over time
● Lower risk of disruption and a narrower range of ● A handful become resilient
predicted outcomes ● 50% typical annual turnover
● 10% typical annual turnover

The examples listed herein are for illustrative purposes only and should not be construed as investment advice.
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For professional and institutional investors only. Not for retail investors.
Positioning

Geographical breakdown 12-month average sector weight*

United States 92% Global Equity Growth

Producer Manufacturing
Taiwan 3% Unconstained Strategy

Netherlands 2% MSCI ACWI

Retail Trade
France 1%
Japan 1%
Consumer Durables
Canada 1%

Process Industries

Market cap breakdown

Finance
> 100 $bn – 43%
50-100 $bn – 4%
Consumer Services
20-50 $bn – 18%
10-20 $bn – 13%
5-10 $bn – 15% Electronic Technology

2-5 $bn – 2%
1-2 $bn – 5% Technology Services

0% 20% 40%

Source: NZS/Jupiter info. 3.31.20. * Sectors not held are excluded. Representative account, Global Growth Equity Unconstrained
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For professional and institutional investors only. Not for retail investors.
Portfolio positioning
Top 10 positions

Stock Country %

Microchip Technology United States 5.15

Microsoft United States 5.06

Salesforce United States 4.77

Amphenol United States 4.68

Walt Disney United States 3.92

Zendesk United States 3.26

NVIDIA United States 3.12

Crown Castle United States 3.09

Ball Corporation United States 3.05

Cadence Design Systems United States 3.03

Any stock examples are used for illustrative purposes only and should not be viewed as investment advice.
Source: NZS/Jupiter, 3.31.20 Representative account, Global Growth Equity Unconstrained.
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For professional and institutional investors only. Not for retail investors.
Summary

Structurally overweight innovation

The pace of change is increasing, and technology impacts every sector in every part of the world

Embrace complexity
The world is governed by complex adaptive systems that teach us to expect the unexpected,
make broad predictions, and focus on fundamental risk

Balance risk and opportunity

Resilience and Optionality balance risk and opportunity, providing two portfolios in one while
accounting for asymmetry and unpredictability

Employ an active, team-driven approach

Role of team is to debate opportunities and identify cognitive bias in decision-making

Think Non-Zero-Sum
Companies that accept their broadening fiduciary duty to the planet and everyone on it are
poised to generate sustainable, long-term investment returns.

The views expressed are those of the fund manager at the time of preparation and may change in future.

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For professional and institutional investors only. Not for retail investors.
NZS Strategies

Global Equity Growth Unconstrained Global Equity Select Tech Strategy

● ACWI Benchmark ● ACWI Benchmark ● MSCI World Information

Technology benchmark
● Composite inception 12.31.19 ● Composite inception 12.31.19
● Composite inception XX.XX.20
● 50-70 names ● 20-25 names
● 50-70 names
● Resilient and optionality ● Resilient and larger optionality,
cutting some of the tail names ● Resilient and optionality

Strategies use the same process and expect similar risk-return profiles

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For professional and institutional investors only. Not for retail investors.
NZS Capital Team
Brad Slingerlend – Co-founder/Investor
Brad is a co-founder and investor at NZS Capital, LLC. Previously Brad was the
portfolio manager of the Janus Henderson Global Technology products (ticker:
JAGTX) from May 2011 to November 2018. Prior to that he held various roles as an
analyst, sector team leader, and portfolio manager at Janus Henderson Investors for
most of the period starting as a summer intern in 1998 up until the end of 2018. Brad
received his Bachelor of Arts in Economics and Astrophyics from Williams
College.Brad is a CFA® charter holder.
Jon Bathgate – Investor
Jon Bathgate is an investor at NZS Capital, LLC. Jon was most recently a research analyst
and co-head of the technology sector team at Janus Henderson in Denver. Jon began his
investing career at Janus Henderson in 2008, and has a Bachelor of Arts in Mathematics
from Boston College. Jon is a CFA® Charterholder.
Adam Schor – President and CCO
Adam Schor is President and Chief Compliance Officer of NZS Capital, LLC. Adam worked
for 11 years at Janus Henderson in Denver, where he was Director of Global Equity
Strategies. Prior to Janus Henderson, he spent 10 years at the boutique investment firm
Bee & Associates starting in 1997, where he was Chief Investment Officer. From 1993 to
1997, Adam was an analyst and portfolio manager at Harris and Associates. Adam
received his Bachelor of Science in Journalism from Northwestern University and his
Masters in Finance from the University of Wisconsin Graduate School of Business. Adam
is a CFA® Charterholder.
For professional and institutional investors only. Not for retail investors.
Brinton Johns – Co-founder/Investor
Brinton is a co-founder and investor at NZS Capital, LLC. Brinton started in the
investment industry at Janus Henderson Investors in 2000 in retail client support
before becoming a research associate in 2003. Brinton became a research analyst in
2006 and later became leader of the global technology sector team and co-portfolio
manager of the Janus Henderson Global Technology products with Brad until June
2017. Brinton received his Bachelor of Business Administration in Business
Management from University of Texas, Arlington and a Mastersof Arts in
Biblical/Christian Studies from the Denver Seminary.
Joe E Furmanski – Investor
Joe Furmanski is an investor at NZS Capital, LLC. Joe began his investing career at Janus in
2006 and joined the technology and communications sector teams as a research analyst
in 2017. He has received a Bachelor of Science in Business Administration from the
University of Nebraska as well as an MBA from the University of Denver, Daniels School
of Business.
Jim Goff – Senior advisor
Jim Goff is a Senior Advisor to NZS Capital, LLC. Jim was previously Director of Research
for Janus Henderson in Denver from 2002 until 2014. Prior to that Jim held various roles
including portfolio manager and analyst at Janus Henderson beginning in 1988. Jim
received his Bachelor of Arts degree in Economics, with distinction, from Yale University.
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 Disclaimers

The material in this presentation regarding NZS Capital Management is confidential, intended solely for the person to whom it has been delivered and may not be reproduced
or distributed. The material provided is for informational purposes only as a one-on-one presentation and is not intended as a solicitation to buy or sell any securities or other
financial instruments or to provide any investment advice or service. NZS does not guarantee the timeliness, sequence, accuracy, or completeness of information included. The
information contained in this presentation, including, without limitation, forward looking statements, portfolio construction and parameters, markets and instruments traded,
and strategies employed, reflects NZS’s views as of the date hereof and may be changed in response to NZS’s perception of changing market conditions, or otherwise, without
further notice to you. Accordingly, the information herein should not be relied on in making any investment decision, as an investment always carries with it the risk of loss and
the vulnerability to changing economic, market, or political conditions. Past performance should not be taken as an indication or guarantee of future performance and no
representation, express or implied, is made regarding future performance or that NZS’s investment or risk management process will be successful.

Reference to an index does not imply that an NZS portfolio will achieve returns, volatility, or other results similar to the index. You cannot invest directly in an index; therefore,
the composition of a benchmark index may not reflect the manner in which an NZS portfolio is constructed in relation to expected or achieved returns, investment holdings,
portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility, or tracking error targets, all of which are subject to change over time. No representation or
warranty is made to the reasonableness of the assumptions made or that all assumptions used to construct the performance provided have been stated or fully considered.

The presentation may also include performance that is based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results in an
actual performance record, these results do not represent actual trading. Because these trades have not actually been executed, these results may have under-or over-
compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that
they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

Information obtained from third-party sources, although believed to be reliable, has not been independently verified by NZS and its accuracy or completeness cannot be
guaranteed.
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For professional and institutional investors only. Not for retail investors.