Portfolio Commentary

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2Q18 Portfolio Commentary

Geneva Small Cap Growth Managed Account Market environment/Overview The theme of volatility returning to the markets from last quarter continued in the second quarter. The U.S. equity market delivered positive returns during the quarter as a result of solid corporate earnings and significant pro-business regulatory reform. Offsetting that, investors were unnerved by President Trump’s aggressive trade policies which spiked market volatility. Although there are certainly areas of worry, this market appears quite resilient, shaking off bad news quickly. Low-quality companies were back in favor this quarter with B or worse rated companies (low quality) outperforming companies rated B+ or better (high quality)*. The Russell 2000® Growth Index trends were balanced; non-earners outperformed, indicating a bias toward low quality, while low beta companies and companies with high growth rates outperformed. Broadly speaking, the market environment was a headwind for active, high-quality managers.

W. Scott Priebe Portfolio Manager

Performance For the quarter ended June 30, 2018, the Geneva U.S. Small Cap Growth wrap composite underperformed the Russell 2000 Growth Index. The underperformance was broad based with nearly every sector detracting from performance. At the sector level, the greatest detractors were financial services, producer durables and technology. At a stock level the top three detractors were Allegiant Travel, Beacon Roofing and Cantel Medical. Allegiant released earnings at the end of April and reported good results with EPS topping estimates and revenue in line with expectations but increasing oil costs dragged down the entire airline industry, including Allegiant. Beacon Roofing reported quarterly earnings that were below expectations due to weather-related impacts, pricing headwinds and elevated SG&A expense. Shares of Cantel Medical were down after a disappointing earnings print; the company missed on revenue due to weaker than anticipated U.S. endoscopy revenue. Contributing to performance was health care; at the stock level the greatest contributors were Tactile Systems, Medidata Solutions and Fox Factory Holdings. Tactile Systems was the top contributor and reported extremely strong top line results driven by higher than expected Flexitouch sales, which grew 40%. Medidata reported results which beat on both the top and bottom lines, marking a reacceleration in growth. The company also announced a new deal with IQVIA holdings which means Medidata now has enterprise relationships with all five of the top contract research organizations (CROs). Fox Factory Holdings posted impressive quarterly earnings; both revenue and EPS came in well ahead of expectations on the back of strong growth in the mountain bike segment and 33% sales growth in the powered vehicles segment.

Highlights

William A. Priebe, CFA Portfolio Manager

Amy S. Croen, CFA Portfolio Manager

José Muñoz, CFA Portfolio Manager

• The Portfolio underperformed its benchmark. • Tactile Systems, Medidata Solutions and Fox Factory Holdings were our top three contributors. • Allegiant Travel, Beacon Roofing and Cantel Medical were our largest detractors. • We expect the Federal Reserve to continue raising rates and we believe it will be a good environment for active managers, and in particular high-quality active managers. Page 1 of 2

2Q18 Portfolio Commentary (as of 6/30/18) Outlook As we close out the first half of the year, we are encouraged by the strong market performance and economic data, but many of our worries continue to plague us. On the plus side, economic data continues to be strong here in the U.S. with unemployment at historically low levels, strong manufacturing data, solid retail sales, and rising consumer wages — all signaling an extremely healthy economy. We expect the 2017 tax bill to start showing up in robust consumer numbers. On the other side, investors have a never-ending litany of reasons to be pessimistic: trade war with China, central bank missteps, mid-term elections and general geopolitical unrest, but concerns with such factors have always persisted.

It’s important that investors remain focused on company fundamentals. We expect the Federal Reserve to continue raising rates and we believe it will be a good environment for active managers, and in particular high-quality active managers.

Model Strategy Top Contributors and Detractors for the Quarter Ended 6/30/18 Top Contributors

Ending Weight (%)

Contribution (%)

Tactile Systems Technologies

1.45

0.59

Medidata Solutions, Inc.

2.43

Fox Factory Holding Corp.

Top Detractors

Ending Weight (%)

Contribution (%)

Allegiant Travel Co.

1.73

-0.43

0.57

Beacon Roofing Supply, Inc.

1.28

-0.34

1.87

0.48

Cantel Medical Corp.

2.53

-0.33

Neogen Corp.

2.76

0.48

Middleby Corp.

1.34

-0.26

Exponent Inc.

2.28

0.46

MarketAxess Holdings Inc.

2.18

-0.22

The holdings identified in this table, in compliance with Janus Henderson policy, do not represent all of the securities purchased, held or sold during the period. To obtain a list showing every holding as a percentage of the portfolio at the end of the most recent publicly available disclosure period, contact 800.668.0434.

For more information, please contact your financial advisor or visit janushenderson.com. *Stock ratings are provided by Standard & Poor’s and Bank of America Merrill Lynch U.S. Quantitative Strategy. Stock rankings are assigned to all U.S. equity securities, which have the required 10 years of earnings and dividend history as required by Standard & Poor’s. Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Discussion is based on performance gross of fees and expenses. Information relating to portfolio holdings is based on the model strategy for the composite and may vary for accounts in the strategy due to asset size, client guidelines and other factors. The model strategy reflects the portfolio management style. As of 6/30/18, the top 10 portfolio holdings of the Model Strategy are: Neogen Corp. 2.76%, Blackbaud Inc. 2.55%, Cantel Medical Corp. 2.53%, Paycom Software Inc. 2.53%, Tyler Technologies Inc. 2.49%, Bright Horizons Family Solutions Inc. 2.46%, Medidata Solutions Inc. 2.43%, Exponent Inc. 2.28%, RBC Bearings Inc. 2.20%, and MarketAxess Holdings Inc. 2.18%. There are no assurances that any portfolio currently holds these securities or other securities mentioned. Portfolio holdings are as of the date indicated, and are subject to change. This material should not be construed as a recommendation to buy or sell any security. Sectors based on Russell Global Sectors classifications. The opinions are as of 6/30/18 and are subject to change without notice. Janus Henderson may have a business relationship with certain entities discussed. The comments should not be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes. Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and C-0718-18571 10-30-18

certain equity securities, such as private placements and some share classes of equity securities, are excluded. Geneva Small Cap Wrap composite, benchmarked to the Russell 2000® Growth Index, contains fully discretionary equity accounts invested in approximately 50-60 small capitalization growth securities whose market capitalization ranges generally fall between $500 million to $3 billion at the time of purchase. Securities are selected using a “bottom-up” fundamental analysis of the company and supplemented by “top-down” considerations of economic conditions. This composite contains traditional SMA/wrap/bundled fee accounts, or accounts that have negotiated a bundled transaction and bundled fee with the broker, but Geneva’s fee is charged separately. The composite was created September 30, 2010. Geneva Capital Management (Geneva) claims compliance with the Global Investment Performance Standards (GIPS®). Geneva (formerly known as Henderson Geneva Capital Management) is a registered investment adviser and a wholly owned subsidiary of Janus Henderson Group. On October 1, 2014 Henderson Global Investors Inc. acquired Geneva, and subsequently merged with Janus Capital Group Inc. on May 30, 2017 to form Janus Henderson Group. To receive a complete list and description of composites and/or a presentation that complies with the requirements of the GIPS® standards, please contact Janus Henderson at 800.668.0434. Russell 2000® Growth Index reflects the performance of U.S. small-cap equities with higher price-to-book ratios and higher forecasted growth values. S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. Janus Henderson and Henderson Geneva are trademarks or registered trademarks of Janus Henderson Investors. © Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and Janus International Holding LLC. 688-15-418572 07-18 Page 2 of 2