Global Leaders Quarterly Call March 31, 2021 - Sands Capital
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Global Leaders Quarterly Call March 31, 2021
We are active, long-term investors in leading
innovative growth businesses, globally.
ALL-IN CULTURE INSIGHT-DRIVEN YEAR FOUNDED
1992
We are one team dedicated to one mission and Businesses that can build a sustainable
one philosophy. As a fully independent and advantage are few and far between. To seek
staff-owned firm, we attract and retain strong them, we apply six criteria to separate signal OWNERSHIP
talent, focus on long-term outcomes, and are from noise, identify what matters most, and Independent
highly aligned with our clients’ interests. construct differentiated views on tomorrow’s 100% Staff Owned
businesses, today.
AUM
$68.4B USD
STAFF
GLOBAL PERSPECTIVE WITH HIGH CONVICTION 152
LOCAL UNDERSTANDING FOR HIGH IMPACT
HEADQUARTERS
Innovation-driven growth knows no geographic All our strategies concentrate investments in Arlington, VA, USA
boundaries. Neither does our research team. We only our best ideas and avoid mediocrity. With
are hands on, on-the-ground, deeply immersed the intent to own businesses for five years or
in the ecosystems in which our businesses longer, we seek to create value for clients
operate. through the compounding of business growth
over time.
All data is as of 3/31/21.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 2
Who We Serve
ASSETS BY TYPE REPRESENTATIVE CLIENTS
Corporate and Multi-Employer Pooled Funds/Other
U.S. Institutional Separate Accounts: 34%
Con Edison Alberta Investment Management Corporation
Non-U.S. Institutional Separate Accounts: 11% General Mills Lombard Odier
Halliburton MLC (National Australia Bank)
U.S. Pooled Funds: 26%
Touchstone Investments
Non-Profit
Non-U.S. Pooled Funds: 28%
Public
National Gallery of Art
Private Clients: 1% Sutter Health District of Columbia Retirement Board
Wheaton College Minnesota State Board of Investment
San Francisco Employees' Retirement System
EUROPE
Andorra
Azerbaijan
Denmark
Finland
France
Guernsey
AMERICAS
Ireland ASIA PACIFIC
Isle of Man
Jersey Australia
Bahamas China
Brazil Luxembourg
Monaco Hong Kong
British Virgins Islands Japan
Canada Netherlands
Norway New Zealand
Cayman Islands Singapore
USA Portugal
Spain South Korea
Sweden Thailand
MIDDLE EAST
Switzerland
UK Bahrain
Kuwait
AFRICA Qatar
Mauritius Saudi Arabia
Namibia UAE
South Africa
All data is as of 3/31/21. Sands Capital Management selected institutional, fully discretionary, equity accounts which are indicative of the various types and locales of its client base for inclusion in this Representative Client List. Rounding
may cause figures to vary from 100.0%. The client’s consent to be included on this list should not be construed as approval or disapproval by these clients of Sands Capital Management or its advisory services. The countries above
represent both direct and pooled-fund clients or investors of Sands Capital Management.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 3
What We Do
With a singular focus on growth investing, we offer clients
strategies that actively target leading public and private
businesses across the growth spectrum.
GLOBAL LEADERS
30-50 public businesses
Global opportunity set
$3.2B AUM
SELECT GROWTH GLOBAL GROWTH
25-30 public businesses 30-50 public businesses
Primarily U.S.-focused Global opportunity set
$23.6B AUM $26.0B AUM
EMERGING MARKETS GROWTH INTERNATIONAL GROWTH
30-50 public businesses 25-40 public businesses
Emerging and frontier markets International opportunity set
$13.6B AUM $106.3M AUM
PRIVATE GROWTH EQUITY TECHNOLOGY INNOVATORS FOCUS STRATEGIES
Global Private Growth Fund I - Fully invested 25-35 public businesses 5-20 public businesses
Global Innovation Fund - Investing Global opportunity set Global opportunity set
VENTURE CAPITAL Life Sciences Pulse - Investing $993.1M AUM $998.1M AUM
Global Venture Fund I - Fully invested
Global Venture Fund II - Investing
All data is as of 3/31/21. The above figures represent total Assets Under Management for each public investment strategy listed. The Venture Capital and Growth Equity investment strategies are managed by Sands Capital Ventures, LLC,
an affiliate of Sands Capital Management, LLC, and are only available to qualified investors. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. References to “Sands Capital”, the “firm”, “we” or “our” are references to Sands Capital Management and its affiliates,
collectively, including Sands Capital Ventures, LLC (“Sands Capital Ventures”), which is a registered investment adviser that provides private market investment strategies, including its Private Growth Strategy to its clients. Sands Capital
Management seeks to adhere to the Global Investment Performance Standards (GIPS®) when reporting its investment performance results; however, Sands Capital Ventures does not.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 4
Investment Strategies & Results
Net Results as of March 31, 2021
ANNUALIZED (%)
INCEPTION STRATEGY SINCE
1Q21 1 YEAR 3 YEARS 5 YEARS 10 YEARS
DATE ASSETS INCEPTION
SELECT GROWTH 2/29/92 $23.6B -2.4 84.1 29.5 27.0 19.2 13.8
RUSSELL 1000 GROWTH INDEX 0.9 62.7 22.8 21.0 16.6 10.4
Value Added (bps) -330 2,140 670 600 260 340
GLOBAL GROWTH 12/31/08 $26.0B -0.8 73.6 21.3 22.5 15.0 20.7
MSCI ALL COUNTRY WORLD INDEX 4.6 54.6 12.1 13.2 9.1 11.5
Value Added (bps) -540 1,900 920 930 590 920
EMERGING MARKETS GROWTH 12/31/12 $13.6B -2.4 90.7 17.2 18.5 — 12.2
MSCI EMERGING MARKETS INDEX 2.3 58.4 6.5 12.1 — 5.2
Value Added (bps) -470 3,230 1,070 640 — 700
GLOBAL LEADERS 3/31/17 $3.2B -1.6 51.6 18.6 — — 20.3
MSCI ALL COUNTRY WORLD INDEX 4.6 54.6 12.1 — — 12.8
Value Added (bps) -620 -300 650 — — 750
INTERNATIONAL GROWTH 3/31/18 $106.3M -1.8 87.0 28.8 — — 28.8
MSCI ALL COUNTRY WORLD INDEX EX US 3.5 49.4 6.5 — — 6.5
Value Added (bps) -530 3,760 2,230 — — 2,230
FOCUS 5 4/02/08 $217.1M -0.9 60.7 23.9 23.7 18.8 18.2
MSCI ALL COUNTRY WORLD INDEX 4.6 54.6 12.1 13.2 9.1 6.8
Value Added (bps) -550 610 1,180 1,050 970 1,140
The investment results shown are net of advisory fees and reflect the reinvestment of dividends and any other earnings. Investment results presented are that of the Tax-Exempt Institutional Equity Composite, Global Growth Equity Composite, Global Leaders Equity
Composite, Emerging Markets Growth Composite, International Growth Equity Composite and Institutional Focus 5 Equity Composite. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of future results.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 5
Power of Long-term Compounding
Global Leaders vs. MSCI All Country World Index
Net Results for Period Ending March 31, 2021
Portfolio: 20.31
Benchmark: 12.81
120
109.7
100
80
60 61.7
40
20
0
'17 '18 '19 '20
1
Annualized since inception (%). Inception date is 3/31/17. The investment results shown are net of advisory fees and reflect the reinvestment of dividends and any other earnings. The investment results are that of the Global Leaders
Equity Composite. GIPS®-compliant reports and additional disclosures for the related composites may be found at http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past
performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 6
Annualized Investment Results
Global Leaders vs. MSCI All Country World Index
Net Results (%) as of March 31, 2021
Portfolio Benchmark
54.6
51.6
20.3
18.6
12.1 12.8
4.6
-1.6
QTD 1 YEAR 3 YEARS SINCE INCEPTION
Inception date is 3/31/17. Periods greater than one year are annualized. The investment results shown are net of advisory fees and reflect the reinvestment of dividends and any other earnings. The investment results are that of the Global
Leaders Equity Composite. GIPS®-compliant reports and additional disclosures for the related composites may be found at http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this
presentation. Past performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 7
Yearly & Cumulative Investment Results
Global Leaders vs. MSCI All Country World Index
Net Results (%) as of March 31, 2021
RELATIVE CUMULATIVE
PORTFOLIO BENCHMARK VALUE ADDED VALUE ADDED
(BPS) (BPS)
2017 21.3 16.0 530 530
2018 2.0 -9.4 1,140 1,880
2019 35.8 26.6 920 3,500
2020 26.8 16.3 1,050 5,840
2021 -1.6 4.6 -620 4,800
1Q -1.6 4.6 -620 4,800
Cumulative Since Inception (3/31/17 - 3/31/21) 109.7 61.7 4,800
Annualized Since Inception 20.3 12.8 750
Inception date is 3/31/17. The investment results shown are net of advisory fees and reflect the reinvestment of dividends and any other earnings. The investment results are that of the Global Leaders Equity Composite. GIPS®-compliant
reports and additional disclosures for the related composites may be found at http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of
future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 8
Global Leaders Portfolio Profile Summary
Global Leaders vs. MSCI All Country World Index
As of March 31, 2021
COMPOSITION PORTFOLIO BENCHMARK REGION EXPOSURE (%) PORTFOLIO BENCHMARK ACTIVE WEIGHT
Number of Holdings 36 2,978 US/Canada 58.3 60.5 -2.2
Assets $3.1B n/a Developed Asia 19.6 9.6 10.0
Benchmark Holdings 78% n/a W. Europe 11.1 16.7 -5.6
Active Share 94% n/a Emerging Asia 10.1 10.4 -0.3
Trailing 12 mos. Turnover 32% n/a Mid-East & Africa – 1.1 -1.1
Latin America – 1.1 -1.1
E. Europe – 0.6 -0.6
CHARACTERISTICS PORTFOLIO BENCHMARK
[Cash] 0.9 – 0.9
SCM Long-Term EPS Growth Estimate 22% n/a
Consensus Long-Term EPS Growth Estimate 16% 15%
Weighted Avg. Market Cap $159.9B $298.8B
Median Market Cap $48.9B $11.9B
Consensus Forward P/E - Next 12 mos. 31x 19x
Dividend Yield 0.5% 1.7%
SECTOR EXPOSURE (%) PORTFOLIO BENCHMARK ACTIVE WEIGHT
Information Technology 24.2 21.3 2.9
TOP 10 HOLDINGS WEIGHT (%) DATE PURCHASED Industrials 20.9 10.0 10.9
Roper Technologies 4.3 Apr-19 Health Care 13.3 11.4 1.9
Alimentation Couche-Tard 4.3 Mar-17 Consumer Discretionary 12.0 12.8 -0.8
Chegg 4.1 May-20 Communication Services 11.2 9.4 1.8
Taiwan Semiconductor 4.0 Mar-17 Financials 9.1 14.3 -5.2
Texas Instruments 3.9 Mar-19 Consumer Staples 6.5 7.0 -0.5
Keyence 3.6 Mar-17 Real Estate 1.8 2.6 -0.8
Visa 3.6 Mar-17 Materials – 5.0 -5.0
Charter Communications 3.6 Apr-20 Energy – 3.4 -3.4
AIA 3.6 Oct-18 Utilities – 2.9 -2.9
Sea 3.5 Dec-19 [Cash] 0.9 – 0.9
Total 38.5
All values are that of the Global Leaders Equity Composite. The companies illustrated above represent a sub-set of current holdings in the Global Leaders Equity Composite and were selected based on the performance measures
presented. Pricing obtained from IDC. Rounding may cause figures to vary from 100.0%. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 9
Contribution Analysis: Quarter to Date
Global Leaders vs. MSCI All Country World Index
Period Ending March 31, 2021
BEST PERFORMERS (%) TOP ABSOLUTE CONTRIBUTORS (%)
AVERAGE TOTAL ABSOLUTE RELATIVE AVERAGE TOTAL ABSOLUTE RELATIVE
COMPANY GICS SECTOR COMPANY GICS SECTOR
WEIGHT RETURN CONTRIB. CONTRIB. WEIGHT RETURN CONTRIB. CONTRIB.
Naver 2.9 23.7 0.5 0.5 Communication Services Sea 4.1 12.2 0.6 0.6 Communication Services
Recruit 2.6 17.0 0.4 0.4 Industrials Texas Instruments 3.7 15.9 0.6 0.5 Information Technology
Texas Instruments 3.7 15.9 0.6 0.5 Information Technology Naver 2.9 23.7 0.5 0.5 Communication Services
Sea 4.1 12.2 0.6 0.6 Communication Services Recruit 2.6 17.0 0.4 0.4 Industrials
Taiwan Semiconductor 4.1 8.8 0.3 0.2 Information Technology Taiwan Semiconductor 4.1 8.8 0.3 0.2 Information Technology
WORST PERFORMERS (%) TOP ABSOLUTE DETRACTORS (%)
AVERAGE TOTAL ABSOLUTE RELATIVE AVERAGE TOTAL ABSOLUTE RELATIVE
COMPANY GICS SECTOR COMPANY GICS SECTOR
WEIGHT RETURN CONTRIB. CONTRIB. WEIGHT RETURN CONTRIB. CONTRIB.
Zur Rose 1.1 -32.9 -0.8 -0.8 Consumer Staples Keyence 4.0 -18.9 -0.8 -0.8 Information Technology
Cloudflare 1.2 -24.8 -0.6 -0.6 Information Technology Zur Rose 1.1 -32.9 -0.8 -0.8 Consumer Staples
Keyence 4.0 -18.9 -0.8 -0.8 Information Technology Cloudflare 1.2 -24.8 -0.6 -0.6 Information Technology
Lonza 2.4 -12.8 -0.3 -0.3 Health Care CoStar Group 3.5 -11.1 -0.4 -0.4 Industrials
Adobe 1.8 -12.6 -0.3 -0.3 Information Technology Lonza 2.4 -12.8 -0.3 -0.3 Health Care
Contribution and performance are calculated using end of day prices, and do not reflect actual purchase prices. This can affect the presentation of contribution and performance of IPOs and other transactions amid heightened volatility.
Global Leaders may participate in IPOs in eligible accounts and purchase additional shares in the secondary market. All values are that of the Global Leaders Equity Composite. The companies illustrated above represent a sub-set of
current holdings in the Global Leaders Equity Composite and were selected based on the performance measures presented. Top and Bottom absolute contribution figures were calculated by multiplying the security's average weight by
the security's return. The investments results shown are gross of advisory fees and reflect the reinvestment of dividends and any other earnings. The client's return will be reduced by these fees and expenses in addition to any other costs
incurred in the management of the account. Pricing obtained from IDC. To receive a complete list of and description of the calculation methodology for the attribution analysis and complete list detailing each holding’s attribution please
contact a member of the Client Relations Team at 703-562-4000. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 10Attribution Analysis: Quarter to Date
Global Leaders vs. MSCI All Country World Index
Period Ending March 31, 2021
Total Effect Selection Effect Allocation Effect Currency Effect
1.0 2.0
0.0 1.0
-1.0
0.0
-2.0
-1.0
-3.0
BY REGION (%) -4.0
-2.0
-5.0 -3.0
-6.0 -4.0
-7.0 -5.0
Total Emerging Asia Latin America E. Europe Mid-East & Africa Developed Asia W. Europe US/Canada
Portfolio Weight (avg) 100.0 10.2 – – – 20.6 10.2 58.1
Index Weight (avg) 100.0 10.9 1.1 0.6 1.1 9.9 16.7 59.8
Portfolio Return -1.3 12.0 – – – 0.4 -12.2 -2.0
Index Return 4.6 2.2 -6.1 0.7 12.3 2.5 4.0 5.6
Relative Return -5.9 9.8 6.1 -0.7 -12.3 -2.1 -16.2 -7.6
1.0 0.5
0.0
0.0
-1.0
-2.0 -0.5
BY SECTOR (%) -3.0 -1.0
(GICS Sectors) -4.0
-1.5
-5.0
-6.0
-2.0
-7.0 -2.5
Communication Consumer Consumer Information
Total Utilities Materials Real Estate Health Care Energy Financials Industrials
Services Discretionary Staples Technology
Portfolio Weight (avg) 100.0 – 11.6 – 1.8 12.9 13.2 – 5.0 9.4 24.7 20.4
Index Weight (avg) 100.0 2.9 9.4 5.0 2.5 13.0 11.6 3.3 7.0 13.9 21.7 9.7
Portfolio Return -1.3 – 6.9 – -4.4 -0.6 -1.4 – -18.3 1.4 -2.9 -2.1
Index Return 4.6 0.6 6.6 6.4 6.0 2.3 0.4 17.7 -0.8 11.4 1.8 7.4
Relative Return -5.9 -0.6 0.3 -6.4 -10.4 -2.9 -1.8 -17.7 -17.5 -10.0 -4.7 -9.5
Contribution and performance are calculated using end of day prices, and do not reflect actual purchase prices. This can affect the presentation of contribution and performance of IPOs and other transactions amid heightened volatility.
Global Leaders may participate in IPOs in eligible accounts and purchase additional shares in the secondary market. All values are that of the Global Leaders Equity Composite. The investments results shown are gross of advisory fees and
reflect the reinvestment of dividends and any other earnings. The client's return will be reduced by these fees and expenses in addition to any other costs incurred in the management of the account. The attribution analysis approximates
the gross excess returns of the portfolio and is calculated by the FactSet attribution model based on a “buy-and-hold” approach. Returns will not match actual performance because FactSet uses different exchange rate sources, the
performance does not capture intra-day trading, and the analysis removes the impact of cash flows. Pricing obtained from IDC. To receive a complete list of and description of the calculation methodology for the attribution analysis and
complete list detailing each holding’s attribution please contact a member of the Client Relations Team at 703-562-4000. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 11Contribution Analysis: Trailing 1 Year
Global Leaders vs. MSCI All Country World Index
Period Ending March 31, 2021
BEST PERFORMERS (%) TOP ABSOLUTE CONTRIBUTORS (%)
AVERAGE TOTAL ABSOLUTE RELATIVE AVERAGE TOTAL ABSOLUTE RELATIVE
COMPANY GICS SECTOR COMPANY GICS SECTOR
WEIGHT RETURN CONTRIB. CONTRIB. WEIGHT RETURN CONTRIB. CONTRIB.
Sea 3.5 403.8 6.7 6.6 Communication Services Sea 3.5 403.8 6.7 6.6 Communication Services
Aptiv 2.3 180.1 2.8 2.7 Consumer Discretionary Taiwan Semiconductor 3.2 151.6 3.2 2.5 Information Technology
Taiwan Semiconductor 3.2 151.6 3.2 2.5 Information Technology Texas Instruments 3.6 94.5 2.9 2.7 Information Technology
MonotaRO 2.3 104.7 2.0 1.9 Industrials Aptiv 2.3 180.1 2.8 2.7 Consumer Discretionary
HDFC Bank 2.8 102.0 2.2 2.2 Financials HDFC Bank 2.8 102.0 2.2 2.2 Financials
WORST PERFORMERS (%) TOP ABSOLUTE DETRACTORS (%)
AVERAGE TOTAL ABSOLUTE RELATIVE AVERAGE TOTAL ABSOLUTE RELATIVE
COMPANY GICS SECTOR COMPANY GICS SECTOR
WEIGHT RETURN CONTRIB. CONTRIB. WEIGHT RETURN CONTRIB. CONTRIB.
Zur Rose 0.3 -32.9 -0.8 -0.8 Consumer Staples Zur Rose 0.3 -32.9 -0.8 -0.8 Consumer Staples
Cloudflare 0.3 -24.8 -0.6 -0.6 Information Technology Cloudflare 0.3 -24.8 -0.6 -0.6 Information Technology
Coupa Software 0.0 -9.7 -0.1 -0.1 Information Technology Coupa Software 0.0 -9.7 -0.1 -0.1 Information Technology
CoStar Group 1.9 -3.6 0.0 -0.1 Industrials Dassault Systemes 0.2 0.3 -0.1 -0.1 Information Technology
Dassault Systemes 0.2 0.3 -0.1 -0.1 Information Technology CoStar Group 1.9 -3.6 0.0 -0.1 Industrials
Contribution and performance are calculated using end of day prices, and do not reflect actual purchase prices. This can affect the presentation of contribution and performance of IPOs and other transactions amid heightened volatility.
Global Leaders may participate in IPOs in eligible accounts and purchase additional shares in the secondary market. All values are that of the Global Leaders Equity Composite. The companies illustrated above represent a sub-set of
current holdings in the Global Leaders Equity Composite and were selected based on the performance measures presented. Top and Bottom absolute contribution figures were calculated by multiplying the security's average weight by
the security's return. The investments results shown are gross of advisory fees and reflect the reinvestment of dividends and any other earnings. The client's return will be reduced by these fees and expenses in addition to any other costs
incurred in the management of the account. Pricing obtained from IDC. To receive a complete list of and description of the calculation methodology for the attribution analysis and complete list detailing each holding’s attribution please
contact a member of the Client Relations Team at 703-562-4000. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 12Attribution Analysis: Trailing 1 Year
Global Leaders vs. MSCI All Country World Index
Period Ending March 31, 2021
Total Effect Selection Effect Allocation Effect Currency Effect
2.0 8.0
1.0 6.0
0.0
4.0
2.0
-1.0
BY REGION (%) 0.0
-2.0
-2.0
-3.0 -4.0
-4.0 -6.0
Total Developed Asia Emerging Asia E. Europe Mid-East & Africa Latin America W. Europe US/Canada
Portfolio Weight (avg) 100.0 20.6 8.6 – – – 10.4 58.9
Index Weight (avg) 100.0 10.0 10.2 0.6 1.0 1.1 17.0 60.2
Portfolio Return 53.1 78.7 98.3 – – – 23.6 46.8
Index Return 54.6 43.9 60.2 38.6 60.5 58.1 44.9 58.5
Relative Return -1.5 34.8 38.1 -38.6 -60.5 -58.1 -21.3 -11.7
0.2 5.0
0.0 4.0
-0.2 3.0
-0.4 2.0
-0.6 1.0
BY SECTOR (%) -0.8 0.0
-1.0 -1.0
(GICS Sectors) -1.2 -2.0
-1.4 -3.0
-1.6 -4.0
-1.8 -5.0
Communication Consumer Consumer Information
Total Utilities Health Care Energy Industrials Financials Real Estate Materials
Services Staples Discretionary Technology
Portfolio Weight (avg) 100.0 10.5 4.0 – 15.6 – 19.0 10.5 2.2 – 11.2 25.4
Index Weight (avg) 100.0 9.4 7.8 3.1 12.4 3.3 9.6 13.5 2.8 4.8 12.5 20.9
Portfolio Return 53.1 118.6 20.1 – 34.8 – 56.3 56.0 10.5 – 58.0 53.9
Index Return 54.6 57.2 24.6 22.8 30.2 49.9 61.8 57.0 30.1 76.7 77.9 71.9
Relative Return -1.5 61.4 -4.5 -22.8 4.6 -49.9 -5.5 -1.0 -19.6 -76.7 -19.9 -18.0
Contribution and performance are calculated using end of day prices, and do not reflect actual purchase prices. This can affect the presentation of contribution and performance of IPOs and other transactions amid heightened volatility.
Global Leaders may participate in IPOs in eligible accounts and purchase additional shares in the secondary market. All values are that of the Global Leaders Equity Composite. The investments results shown are gross of advisory fees and
reflect the reinvestment of dividends and any other earnings. The client's return will be reduced by these fees and expenses in addition to any other costs incurred in the management of the account. The attribution analysis approximates
the gross excess returns of the portfolio and is calculated by the FactSet attribution model based on a “buy-and-hold” approach. Returns will not match actual performance because FactSet uses different exchange rate sources, the
performance does not capture intra-day trading, and the analysis removes the impact of cash flows. Pricing obtained from IDC. To receive a complete list of and description of the calculation methodology for the attribution analysis and
complete list detailing each holding’s attribution please contact a member of the Client Relations Team at 703-562-4000. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 13Contribution & Attribution Analysis: Trailing 3 Year
Global Leaders vs. MSCI All Country World Index
Period Ending March 31, 2021
TOP ABSOLUTE CONTRIBUTORS (%) REGION ATTRIBUTION
ACTIVE RELATIVE TOTAL
AVERAGE TOTAL ABSOLUTE RELATIVE REGION WEIGHT RETURN EFFECT
COMPANY GICS SECTOR
WEIGHT RETURN CONTRIB. CONTRIB. US/Canada – 17.8 13.0
Developed Asia 5.5 91.5 12.0
Sea 1.3 498.5 6.8 6.8 Communication Services
W. Europe -4.8 4.6 3.7
TransDigm 3.7 114.4 4.1 4.0 Industrials Emerging Asia -0.1 44.1 2.9
Mid-East & Africa -1.0 5.0 0.5
Visa 4.5 80.4 4.0 3.5 Information Technology
Latin America -0.6 9.3 0.5
Adobe 3.4 102.2 3.7 3.3 Information Technology E. Europe -0.7 -0.6 0.2
Taiwan Semiconductor 2.8 195.3 3.4 2.7 Information Technology
SECTOR ATTRIBUTION
TOP ABSOLUTE DETRACTORS (%) ACTIVE RELATIVE TOTAL
SECTOR WEIGHT RETURN EFFECT
Industrials 8.3 50.1 8.5
AVERAGE TOTAL ABSOLUTE RELATIVE Financials -5.2 46.7 7.1
COMPANY GICS SECTOR
WEIGHT RETURN CONTRIB. CONTRIB. Communication Services -2.1 82.6 4.9
Information Technology 8.7 -12.8 3.8
Fresenius Medical Care 0.6 -35.5 -1.3 -1.3 Health Care
Energy -5.0 14.6 3.0
Zur Rose 0.1 -32.9 -0.8 -0.8 Consumer Staples Real Estate -0.8 69.3 1.7
Consumer Discretionary 5.3 -1.1 1.7
Sands China 0.5 -19.5 -0.7 -0.7 Consumer Discretionary
Consumer Staples -3.3 -5.3 1.6
Cloudflare 0.1 -24.8 -0.6 -0.6 Information Technology Materials -4.9 -34.6 0.4
Utilities -3.2 -29.6 0.2
Booking 0.7 -13.7 -0.5 -0.5 Consumer Discretionary
Health Care 0.6 -3.5 -0.2
Contribution and performance are calculated using end of day prices, and do not reflect actual purchase prices. This can affect the presentation of contribution and performance of IPOs and other transactions amid heightened volatility.
Global Leaders may participate in IPOs in eligible accounts and purchase additional shares in the secondary market. All values are that of the Global Leaders Equity Composite and were selected based on the performance measures
presented. The investments results shown are gross of advisory fees and reflect the reinvestment of dividends and any other earnings. The client's return will be reduced by these fees and expenses in addition to any other costs incurred
in the management of the account. Top and Bottom absolute contribution figures were calculated by multiplying the security's average weight by the security's return. The attribution analysis approximates the gross excess returns of the
portfolio and is calculated by the FactSet attribution model based on a “buy-and-hold” approach. Returns will not match actual performance because FactSet uses different exchange rate sources, the performance does not capture intra-
day trading, and the analysis removes the impact of cash flows. Pricing obtained from IDC. To receive a complete list of and description of the calculation methodology for the attribution analysis and complete list detailing each holding’s
attribution please contact a member of the Client Relations Team at 703-562-4000. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 14Contribution & Attribution Analysis: Since Inception
Global Leaders vs. MSCI All Country World Index
Period Ending March 31, 2021
TOP ABSOLUTE CONTRIBUTORS (%) REGION ATTRIBUTION
ACTIVE RELATIVE TOTAL
AVERAGE TOTAL ABSOLUTE RELATIVE REGION WEIGHT RETURN EFFECT
COMPANY GICS SECTOR
WEIGHT RETURN CONTRIB. CONTRIB. US/Canada 0.5 35.4 22.0
Developed Asia 3.2 158.5 16.0
TransDigm 3.8 224.1 7.6 7.5 Industrials
Emerging Asia 1.2 98.8 9.7
Visa 4.6 144.5 6.9 6.2 Information Technology W. Europe -4.7 19.7 7.8
Latin America -0.2 -3.9 1.0
Sea 1.0 498.5 6.8 6.8 Communication Services
Mid-East & Africa -1.0 -13.7 0.9
Adobe 3.3 235.8 6.5 6.0 Information Technology E. Europe -0.7 -22.1 0.6
Zoetis 3.4 202.5 6.2 6.1 Health Care
SECTOR ATTRIBUTION
TOP ABSOLUTE DETRACTORS (%) ACTIVE RELATIVE TOTAL
SECTOR WEIGHT RETURN EFFECT
Industrials 6.9 98.0 13.8
AVERAGE TOTAL ABSOLUTE RELATIVE Information Technology 7.9 17.6 10.4
COMPANY GICS SECTOR
WEIGHT RETURN CONTRIB. CONTRIB. Financials -6.3 79.9 9.8
Communication Services -2.0 156.6 8.7
Allergan 0.7 -35.5 -1.9 -1.8 Health Care
Consumer Discretionary 8.3 -0.8 4.3
Celgene 0.3 -38.7 -1.6 -1.6 Health Care Energy -5.3 8.7 4.2
Real Estate -0.5 100.2 3.0
O'Reilly Automotive 0.2 -22.3 -0.8 -0.8 Consumer Discretionary
Consumer Staples -3.0 -9.7 2.3
Zur Rose 0.1 -32.9 -0.8 -0.8 Consumer Staples Utilities -3.2 -36.5 1.0
Materials -5.0 -56.0 0.5
Cloudflare 0.1 -24.8 -0.6 -0.6 Information Technology
Health Care 0.6 -4.8 -0.2
Contribution and performance are calculated using end of day prices, and do not reflect actual purchase prices. This can affect the presentation of contribution and performance of IPOs and other transactions amid heightened volatility.
Global Leaders may participate in IPOs in eligible accounts and purchase additional shares in the secondary market. All values are that of the Global Leaders Equity Composite and were selected based on the performance measures
presented. The investments results shown are gross of advisory fees and reflect the reinvestment of dividends and any other earnings. The client's return will be reduced by these fees and expenses in addition to any other costs incurred
in the management of the account. Top and Bottom absolute contribution figures were calculated by multiplying the security's average weight by the security's return. The attribution analysis approximates the gross excess returns of the
portfolio and is calculated by the FactSet attribution model based on a “buy-and-hold” approach. Returns will not match actual performance because FactSet uses different exchange rate sources, the performance does not capture intra-
day trading, and the analysis removes the impact of cash flows. Pricing obtained from IDC. To receive a complete list of and description of the calculation methodology for the attribution analysis and complete list detailing each holding’s
attribution please contact a member of the Client Relations Team at 703-562-4000. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 15Trailing Attribution Effects
Global Leaders vs. MSCI All Country World Index
Period Ending March 31, 2021
Total Effect Selection Effect Allocation Effect Currency Effect
60.0
50.0
40.0
BY REGION (%) 30.0
20.0
10.0
0.0
-10.0
QTD 1 Yr. 3 Yrs. ITD
Portfolio Return -1.3 53.1 72.3 118.4
Index Return 4.6 54.6 40.8 61.7
Relative Return -5.9 -1.5 31.5 56.7
60.0
50.0
40.0
BY SECTOR
(%) 30.0
(GICS Sectors) 20.0
10.0
0.0
-10.0
QTD 1 Yr. 3 Yrs. ITD
Portfolio Return -1.3 53.1 72.3 118.4
Index Return 4.6 54.6 40.8 61.7
Relative Return -5.9 -1.5 31.5 56.7
Contribution and performance are calculated using end of day prices, and do not reflect actual purchase prices. This can affect the presentation of contribution and performance of IPOs and other transactions amid heightened volatility.
Global Leaders may participate in IPOs in eligible accounts and purchase additional shares in the secondary market. All values are that of the Global Leaders Equity Composite. The investments results shown are gross of advisory fees and
reflect the reinvestment of dividends and any other earnings. The client's return will be reduced by these fees and expenses in addition to any other costs incurred in the management of the account. The attribution analysis approximates
the gross excess returns of the portfolio and is calculated by the FactSet attribution model based on a “buy-and-hold” approach. Returns will not match actual performance because FactSet uses different exchange rate sources, the
performance does not capture intra-day trading, and the analysis removes the impact of cash flows. Pricing obtained from IDC. To receive a complete list of and description of the calculation methodology for the attribution analysis and
complete list detailing each holding’s attribution please contact a member of the Client Relations Team at 703-562-4000. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Past performance is not indicative of future results. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 16Significant Transactions
Global Leaders
Period Started October 1, 2020 and Ended March 31, 2021
PURCHASES SCM SECTOR SALES SCM SECTOR
4Q20 Bright Horizons Consumer Bank Central Asia Financial Services
Live Nation Technology
Ross Stores Consumer
Temenos Financial Services
1Q21 Bio-Techne Life Sciences Adobe Technology
Cloudflare Technology Boston Scientific Life Sciences
Coupa Software Technology
Zur Rose Life Sciences
The securities identified represent new securities purchased and sold within the current and prior quarter but do not include weight changes. The list above does not include in progress purchase investment actions. Upon request, a
complete list of securities purchased and sold in the Global Leaders Equity Composite will be provided. It should not be assumed that these holdings were or will be profitable. GIPS®-compliant reports and additional disclosures for the
related composites may be found at http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 17Portfolio Holdings by Sector Global Leaders vs. MSCI All Country World Index Period Ending March 31, 2021 SECTOR/COMPANY BUSINESS SPACE DOMICILE PORTFOLIO (%) BENCHMARK (%) OWNED SINCE Communication Services 11.2 9.4 Charter Communications Internet Service Provider U.S. 3.6 0.1 2020 Naver Internet Search and Media Korea 3.0 0.1 2020 Rightmove Online Real Estate Listings United Kingdom 1.1 – 2017 Sea1 Internet Software and Services Singapore 3.5 – 2019 Consumer Discretionary 12.0 12.8 Aptiv Automotive Technology U.S. 2.4 0.1 2018 Bright Horizons Education Services U.S. 2.3 – 2020 Chegg Education Services U.S. 4.1 – 2020 Dollar General Multiline Retail U.S. 1.8 0.1 2017 Pan Pacific Food and Specialty Retail Japan 1.4 0.0 2017 Consumer Staples 6.5 7.0 Alimentation Couche-Tard Convenience Stores Canada 4.3 0.0 2017 Zur Rose Pharmacy Retail Switzerland 2.2 – 2021 Energy 3.4 Financials 9.1 14.3 AIA Insurance Hong Kong 3.6 0.2 2018 HDFC Bank1 Commercial Banks India 3.0 – 2017 Intercontinental Exchange Futures/OTC Exchange and Interdealer Broker U.S. 2.4 0.1 2017 Health Care 13.3 11.4 Bio-Techne Medical Consumables and Instruments U.S. 1.1 – 2021 CSL Biotech Therapeutic Drugs Australia 2.3 0.1 2018 IQVIA Contract Research Organization U.S. 3.3 0.1 2019 Lonza Pharmaceuticals and Biotech Therapeutic Drugs Switzerland 2.2 0.1 2019 UnitedHealth Health Insurance and Healthcare Services U.S. 2.3 0.6 2018 Zoetis Animal Health Pharmaceuticals U.S. 2.2 0.1 2017 Industrials 20.9 10.0 CoStar Group Real Estate Information Services U.S. 3.4 0.1 2020 MonotaRO Industrial Supplies Distribution Japan 2.5 0.0 2019 Recruit Integrated Human Resources Services Japan 2.7 0.1 2017 Rentokil Initial Industrial Supplies Distribution United Kingdom 2.7 0.0 2019 Roper Technologies Industrial Conglomerate U.S. 4.3 0.1 2019 Safran Aerospace Engines and Aftermarket Parts France 2.9 0.1 2017 TransDigm Aerospace Component Designer and Manufacturer U.S. 2.5 0.0 2017 Information Technology 24.2 21.3 Cloudflare Software-as-a-Service - IT Service Management U.S. 2.0 0.0 2021 Coupa Software Software-as-a-Service—Accounting and Financials U.S. 0.9 0.0 2021 Intuit Accounting and Tax Software U.S. 3.0 0.2 2017 Keyence Industrial Sensors and Controls Japan 3.6 0.1 2017 Microsoft Software U.S. 3.1 2.7 2019 Taiwan Semiconductor1 Semiconductors and Semiconductor Equipment Taiwan 4.0 0.8 2017 Texas Instruments Semiconductors and Semiconductor Equipment U.S. 3.9 0.3 2019 Visa Payment Processing U.S. 3.6 0.6 2017 Materials 5.0 Real Estate 1.8 2.6 Equinix Real Estate Management and Development U.S. 1.8 0.1 2018 Utilities 2.9 [Cash] 0.9 1 ADRs. Data presented is that of the Global Leaders Equity Composite. The index represented will differ in characteristics, holdings, and sector weightings from that of the composite. Rounding may cause figures to vary from 100.0%. GIPS®-compliant reports and additional disclosures for the related composites may be found at http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Source: Factset, SCM, MSCI. SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 18
Our Portfolio
Our approach to investment research, portfolio construction, and risk management results in
a portfolio of high-quality, leading growth businesses located around the world.
CANADA
FRANCE SOUTH KOREA
U.K.
JAPAN
SWITZERLAND
TAIWAN
U.S.
INDIA HONG KONG
SINGAPORE
AUSTRALIA
The above information is that of the Global Leaders Equity Composite.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 19Business Results of Portfolio Companies
Period Ended March 31, 2021
SCM Estimate Latest Quarter Y/Y Latest Fiscal Year Y/Y Cash Generation and Profitability Capital Return
3 Year Average
SCM LONG-TERM REVENUE EPS FCF CAPITAL SHARES DIVIDEND PER
SECTOR EPS GROWTH REVENUE EPS GROWTH GROWTH CONVERSION FCF MARGIN RETURN RATIO OUTSTANDING SHARE
WEIGHTS (%)1 ESTIMATE (%) 2 GROWTH (%) GROWTH (%) (%) (%) (%) (%) ROIC (%) (%) 3 YR CAGR (%) 3 YR CAGR (%)
Communication Services 11 44 23 69 9 72 119 18.4 -20 63 6.4 1.9
Consumer Discretionary 12 21 23 11 19 3 120 9.4 7 44 2.3 7.0
Consumer Staples 7 15 -8 -8 n.m. 23 108 0.6 5 12 6.0 9.8
Financials 9 19 19 22 28 3 126 38.7 8 76 0.2 8.2
Health Care 13 13 9 7 4 6 164 12.2 11 74 -0.8 10.5
Industrials 21 24 2 -11 9 6 135 17.7 11 40 1.2 3.0
Information Technology 24 20 14 14 13 18 96 28.7 20 64 -0.5 18.1
Real Estate 2 12 10 -61 8 -30 n/a n/a n/a n/a 4.5 10.0
Total Portfolio 100 22 11 9 12 14 123 18.1 9 54 1.5 9.2
1
Includes Cash. 2 Long-Term EPS Growth Forecasts are SCM estimates at the given slide content as of date. These figures are subject to change during a reporting period. Based on the Global Leaders Equity Composite. Forward earnings
projections are not predictors of stock price or investment performance and do not represent past performance. There is no guarantee that the forward earnings projections will accurately predict the actual earnings experience of any of
the companies involved, and no guarantee that owning securities of companies with relatively high price to earnings ratios will cause the portfolio to outperform its benchmark or index. Free Cash Flow (FCF) represents the cash that a
company is able to generate after spending the money required to maintain or expand its asset base. FCF is not applicable to companies in following industries and is represented by n/a: Banks, Insurance, and REITs. FCF Conversion
represents how efficiently a company is able to convert earnings to cash and return cash to shareholders. It is calculated as FCF divided by net income. FCF Margin is calculated as FCF divided by sales. ROIC is defined as the Return on
Average Invested Capital and is calculated as net income divided by the two fiscal period average of total invested capital. Capital Return Ratio is calculated as the dividends plus share repurchases, divided by FCF. Shares Outstanding
refer to all authorized & issued shares that are currently held by a company’s shareholders. The CAGR measures the change in shares outstanding over time. Dividend Per Share is total dividends declared divided by ordinary shares
outstanding. Outliers that fall outside five standard deviations from the mean for Consensus Long Term EPS Growth and three standard deviations from the mean for remaining figures are excluded. Outlier logic is not applied to the Sands
Capital's Long-Term EPS Growth Forecasts. Rounding may cause figures to vary from 100.0%. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Source: Factset, SCM calculations.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 20Business Results of Portfolio Companies
Period Ended March 31, 2021
SCM Estimate Latest Quarter Y/Y Latest Fiscal Year Y/Y Cash Generation and Profitability Capital Return
3 Year Average
LONG-TERM REVENUE EPS FCF CAPITAL SHARES DIVIDEND PER
REPORT EPS GROWTH REVENUE EPS GROWTH GROWTH CONVERSION FCF MARGIN RETURN RATIO OUTSTANDING SHARE
GICS SECTORS DATE FORECAST (%)1 GROWTH (%) GROWTH (%) (%) (%) (%) (%) ROIC (%) (%) 3 YR CAGR (%) 3YR CAGR (%)
Communication Services
Charter Communications 1/29/2021 16 7 84 5 107 237 10.3 2 157 -11.0 0.0
Naver 1/28/2021 33 -15 51 -20 71 76 14.0 14 18 0.2 10.0
Rightmove 2/26/2021 14 n.m. n.m. -29 -38 98 57.1 n.m. 79 -2.0 -8.2
Sea 3/02/2021 93 72 n.m. 50 n.m. 41 n.m. -73 0 32.4 0.0
Consumer Discretionary
Aptiv 2/03/2021 31 17 -2 -9 -60 68 5.8 15 61 0.3 n.m.
Bright Horizons 2/18/2021 14 -28 -64 -27 -58 235 9.8 6 35 0 0.0
Chegg 2/09/2021 26 64 57 57 47 n.m. 15.3 -1 19 7.8 0.0
Dollar General 3/18/2021 14 18 25 22 58 94 6.4 15 99 -2.9 11.5
Pan Pacific 2/11/2021 12 1 -1 27 4 57 1.9 7 29 0.1 32.5
Consumer Staples
Alimentation Couche-Tard 3/18/2021 15 -32 -8 -5 23 102 3.8 13 20 -0.4 14.9
Zur Rose 3/18/2021 n/a 37 n.m. 9 n.m. 119 -5.6 -11 -3 18.1 0.0
Financials
AIA 3/12/2021 26 n.m. 30 53 -13 n/a n/a n/a n/a 0.1 10.8
HDFC Bank 1/16/2021 18 11 15 10 13 n/a n/a n/a n/a 2.2 0.0
Intercontinental Exchange 2/04/2021 10 29 19 16 16 126 38.7 8 76 -2.2 14.5
Health Care
Bio-Techne 2/02/2021 20 21 50 3 1 116 22.0 10 46 1.7 0.0
CSL 2/18/2021 11 2 26 0 6 51 11.5 21 85 -0.1 14.3
IQVIA 2/10/2021 12 14 21 2 0 408 9.0 1 94 -4.3 0.0
Lonza 1/27/2021 15 6 0 4 10 51 7.0 7 86 3.0 4.6
UnitedHealth 1/20/2021 14 8 -35 6 12 121 6.9 15 52 -0.8 18.9
Zoetis 2/16/2021 11 8 -1 7 6 98 23.8 18 56 -1.0 24.5
Industrials
CoStar Group 2/24/2021 35 19 1 19 -3 158 28.4 8 7 4.5 0.0
MonotaRO 2/03/2021 22 22 11 20 25 78 6.7 31 41 0 19.8
Recruit 2/16/2021 23 1 5 4 4 146 11.0 16 34 -0.4 11.3
Rentokil Initial 3/04/2021 22 10 17 4 7 41 12.6 5 16 0.2 11.6
Roper Technologies 1/29/2021 16 8 5 3 -2 128 26.6 9 13 0.7 12.8
Safran 10/30/2020 34 -28 -63 17 35 223 9.5 9 70 1.8 -35.2
TransDigm 2/09/2021 13 -24 -60 -2 -21 156 21.4 6 125 1.1 0.0
Information Technology
Cloudflare 2/12/2021 n/a 50 n.m. 50 n.m. 80 -30.2 -27 0 0.1 0.0
Coupa Software 3/17/2021 73 47 -19 39 48 -51 12.7 -14 0 9.0 0.0
Intuit 2/24/2021 20 -7 -41 13 16 139 31.8 42 40 0.4 16.0
Keyence 2/01/2021 25 3 -2 -6 -12 94 34.9 14 11 0 44.0
Microsoft 1/27/2021 19 17 34 14 21 131 30.5 19 82 -0.6 9.4
Taiwan Semiconductor 1/14/2021 15 22 32 35 61 64 22.4 23 93 0 10.7
Texas Instruments 1/27/2021 14 22 61 1 14 108 38.9 38 113 -2.7 20.6
Visa 1/29/2021 15 -6 -3 -5 -7 106 51.7 21 91 -2.5 22.1
Real Estate
Equinix 2/11/2021 12 10 -61 8 -30 n/a n/a n/a n/a 4.5 10.0
Results shown are based on the Global Leaders Equity Composite. 1 Long-Term EPS Growth Forecasts are SCM estimates at the given slide content as of date. These figures are subject to change during a reporting period. Forward
earnings projections are not predictors of stock price or investment performance and do not represent past performance. There is no guarantee that the forward earnings projections will accurately predict the actual earnings experience
of any of the companies involved, and no guarantee that owning securities of companies with relatively high price to earnings ratios will cause the portfolio to outperform its benchmark or index. Free Cash Flow (FCF) represents the cash
that a company is able to generate after spending the money required to maintain or expand its asset base. FCF is not applicable to companies in following industries and is represented by n/a: Banks, Insurance, and REITs. FCF Conversion
represents how efficiently a company is able to convert earnings to cash and return cash to shareholders. It is calculated as FCF divided by net income. FCF Margin is calculated as FCF divided by sales. ROIC is defined as the Return on
Average Invested Capital and is calculated as net income divided by the two fiscal period average of total invested capital. Capital Return Ratio is calculated as the dividends plus share repurchases, divided by FCF. Shares Outstanding
refer to all authorized & issued shares that are currently held by a company’s shareholders. The CAGR measures the change in shares outstanding over time. Dividend Per Share is total dividends declared divided by ordinary shares
outstanding. Outliers that fall outside five standard deviations from the mean for Consensus Long Term EPS Growth and three standard deviations from the mean for remaining figures are excluded. Outlier logic is not applied to the Sands
Capital's Long-Term EPS Growth Forecasts. GIPS®-compliant reports and additional disclosures for the related composites may be found at http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end
of this presentation. Source: Factset, SCM calculations.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 21Appendix 1000 Wilson Boulevard
Suite 3000
Arlington, VA 22209, USA
703.562.4000
sandscapital.com
The views expressed are the opinion of Sands Capital Management and are not
intended as a forecast, a guarantee of future results, investment
recommendations, or an offer to buy or sell any securities. The views expressed
were current as of the date indicated and are subject to change. Past
performance is not indicative of future results. Differences in account size, timing
of transactions and market conditions prevailing at the time of investment may
lead to different results, and clients may lose money. A company’s fundamentals
or earnings growth is no guarantee that its share price will increase. Forward
earnings projections are not predictors of stock price or investment performance,
and do not represent past performance. Characteristics, sector exposure and
holdings information are subject to change, and should not be considered as
recommendations. The specific securities identified and described do not
represent all of the securities purchased, sold, or recommended for advisory
clients. There is no assurance that any securities discussed will remain in the
portfolio or that securities sold have not been repurchased. You should not
assume that any investment is or will be profitable.
The Global Industry Classification Standard ("GICS") was developed by and is the
exclusive property and a service mark of MSCI Inc. ("MSCI") and Standard &
Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P") and is licensed for
use by Sands Capital Management, LLC. Neither MSCI, S&P nor any third party
involved in making or compiling the GICS or any GICS classifications makes any
express or implied warranties or representations with respect to such standard or
classification (or the results to be obtained by the use thereof), and all such
parties hereby expressly disclaim express or implied warranties or representations
with respect to any such standard or classification. Without limiting any of the
foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party
involved in making or compiling the GICS or any GICS classifications have any
liability for any direct, indirect, special, punitive, consequential or any other
damages (including lost profits) even if notified of the possibility of such
damages.
All company logos and website images are used for illustrative purposes only and
were obtained directly from the company websites. Company logos and website
images are trademarks or registered trademarks of their respective owners and
use of a logo does not imply any connection between Sands Capital and the
company. GIPS®-compliant presentations and additional disclosures for the
On the Cover related composites may be found at
Chiyoda, Japan is home to Global Leaders portfolio business Recruit. Recruit is a human resources http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf
company that owns the job search engine Indeed. or at the end of this presentation.
SANDS CAPITAL MANAGEMENT, LLC · SEPTEMBER 2020 22Sands Capital exists to add value and
enhance the wealth of our clients
with prudence over time.
SANDS CAPITAL MANAGEMENT, LLC · DECEMBER 2020 · P244 23Investment Philosophy
We believe that, over time, common stock prices will reflect the earnings power and growth of the
underlying businesses. To be successful we must:
Identify the few truly exceptional businesses with sustainable above-average growth
Construct a concentrated conviction-weighted portfolio
Accept short-term market volatility in exchange for long-term wealth creation
“As long-term investors, we buy leading growth
businesses…we do not trade stocks.”
Frank M. Sands, Sr., Founder
SANDS CAPITAL MANAGEMENT, LLC · DECEMBER 2020 · P244 24Investment Strategy
The cornerstone of our investment strategy is our proprietary global research:
Fundamental, bottom-up, and business-focused.
We seek to identify leading growth businesses that meet the following criteria:
1. Sustainable above-average earnings growth
2. Leadership position in a promising business space
3. Significant competitive advantage/unique business franchise
4. Clear mission and value-added focus
5. Financial strength
6. Rational valuation relative to the market and business prospects
SANDS CAPITAL MANAGEMENT, LLC · DECEMBER 2020 · P244 25Portfolio Guidelines and Construction
A concentrated and conviction-weighted portfolio based on fit with our six investment criteria
is the primary source of value added.
GUIDELINES CONSTRUCTION
Number of Holdings: 30-50
Large Weights
>3.5%
Typically Top 10 Holdings
Position Size Average of 2-3%; maximum of 6-8%
Turnover: Low 35-45%
% of Assets (approximate)
Sector Exposure:1 Typically 0-3x benchmark Medium Weights
>1.5-3.5%
Not to exceed the greater of 3x Typically 25 Holdings
Emerging Markets:2
benchmark exposure or 30%
Currency: Not actively managed
45-55%
% of Assets (approximate)
Cash Position: Residual
Small WeightsEmphasis on Growth Stability and Predictability
The Global Leaders portfolio is largely comprised of compounders.
HIGHER GROWTH COMPOUNDERS GROWTH CYCLICALPortfolio Exposures
Global Leaders vs. MSCI All Country World Index
Period Ended March 31, 2021
Region of Domicile (%) Sector Exposure (%)
Portfolio Benchmark
24.2
Information Technology 21.3
60.5
58.3
20.9
Industrials 10.0
13.3
Health Care 11.4
12.0
19.6 Consumer Discretionary 12.8
16.7
9.6 11.1 10.1 10.4
11.2
Communication Services 9.4
– 1.1 – 1.1 – 0.6 0.9 –
US/Canada Developed Asia W. Europe Emerging Asia Mid-East & Latin America E. Europe [Cash] 9.1
Africa
Financials 14.3
6.5
Developed vs. Emerging Markets (%) Consumer Staples 7.0
Developed Emerging Cash Real Estate
1.8
2.6
Portfolio Benchmark –
Materials 5.0
10 13 –
Energy 3.4
–
Utilities 2.9
0.9
[Cash] –
89 87
The above figures are that of the Global Leaders Equity Composite. “Developed vs. Emerging” market distinction is based on MSCI classification. The index represented will differ in characteristics, holdings, and sector weightings from that
of the composite. Rounding may cause figures to vary from 100.0%. GIPS®-compliant reports and additional disclosures for the related composites may be found at
http://sandscapital.com/media/Sands_Capital_Annual_Disclosure_Presentation.pdf or at the end of this presentation. Source: SCM, MSCI.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P282 28AIA is the largest pan-Asia life insurance business, Alimentation Couche-Tard is among the Aptiv delivers technology solutions for car
with operations across nearly 20 markets. world's largest convenience store operators, with companies and other mobility providers.
more than 11,000 company-owned locations, mainly
in the U.S., Canada, and Europe.
Demand across Asia for high-quality insurance products is We view the convenience store industry as an attractive, The company is a market leader in electrical architecture, as
rising, driven by multiple secular trends, including a large and defensible space within retail, due to its resilience across well as in electronics and active safety, which serve as a car’s
growing middle class, aging populations, and favorable economic cycles, sticky fuel-driven traffic, and insulation from nervous systems and brains, respectively. It is the only supplier
regulations and fiscal policies incentivizing consumers to ecommerce. Convenience stores also feature fast inventory that designs systems for both functions. The automotive
purchase insurance products. We believe AIA has a distinct turns, low operating costs, and strong pricing power, which industry is undergoing a highly disruptive transformation,
advantage as a premier brand with a long and distinguished enables high returns on investment and solid cash flow spurring an arms race for innovative technologies that make
operating track record. The company maintains a unique generation. In our estimation, most developed markets are cars increasingly environmentally friendly, safe, and connected.
competitive advantage in being able to maintain 100 percent nearing saturation in terms of store count, but the convenience We expect Aptiv to benefit uniquely from this shift, given its
equity stakes in local subsidiaries, even in markets that no store industry remains highly fragmented and inefficient, position at a choke point in the supply chain. Importantly, the
longer allow complete foreign ownership (e.g., China, one of the providing Couche-Tard with a significant opportunity to pursue company’s growth does not rely on higher auto production.
most lucrative markets in Asia). We believe this advantage has accretive acquisitions. We believe the company's disciplined Instead, it relies on increasing penetration of these solutions
allowed the company to apply a consistent business strategy and experienced management team has the ability to capitalize and more content per vehicle, which we expect will result in
across all regions, which includes prudent product underwriting, on this large opportunity set—a central pillar of its competitive above-market growth. Aptiv is a market leader benefiting from
an experienced and highly educated workforce, a disciplined advantage. In our view, the company's scale underpins the proliferation of key solutions, such as advanced driver-
focus on traditional insurance products with meaningful additional advantages in terms of buying power, inventory assistance systems and connectivity. Looking ahead, we expect
protection, a conservative approach in managing its investment management, marketing efficiency, and distribution. the shift toward smarter and more content-enabled cars will
book, and strong capital and liquidity. lead to further share gains for Aptiv.
SANDS CAPITAL MANAGEMENT, LLC · MARCH 2021 · P280 29Bio-Techne is a leading global supplier of Bright Horizons is the global leader in employer- Charter Communications is a leading U.S.
proteins, antibodies, test kits, and diagnostic sponsored childcare and family solutions, with a cable provider, serving nearly 30 million customers
solutions to the life science research community. network six times as large as its closest in over 40 states.
competitor's.
The business’s core products are designed to enable scientific We view the company as a beneficiary of multiple structural Charter’s competitive advantage derives from its dense wireline
breakthroughs in areas such as drug discovery, genomics, and trends in the United States and other developed markets, communications network, which would be cost-prohibitive to
precision medicine. Its instruments and reagents also help to including an increase in households with two working parents, replicate, but is relatively inexpensive to maintain and upgrade.
automate manual processes in research to simplify and rising childcare costs, rising quality-of-care standards and early We believe the company will benefit from the cord-cutting
expedite medical and clinical testing. Bio-Techne—with its childhood education expectations, and the growing importance trend, resulting in a shift from a video-centric business (i.e.,
broad portfolio and scale—benefits from first-mover of comprehensive benefits for talent acquisition and retention. cable television) to a higher-margin, less capital-intensive
advantages in bringing new proteins to market and from the These trends underpin a sizable market opportunity that internet-connectivity business. We expect free cash flow to
ability to service a “sticky” customer base with strong margins. should disproportionately benefit Bright Horizons, in our view, double over our investment horizon, driven by mix-shift from
We believe that the business has ample opportunity to increase given its competitive position, which is supported by brand video to internet service, and ongoing operational
customer relevancy and expand its total addressable market by trust, execution, and unmatched scale. We believe growth will improvements. We also see an opportunity for Charter to grow
leveraging its strong core reagents business to fund expansion be further driven by the recurring revenue base that Bright its nascent hybrid-MVNO (mobile virtual network operator)
into adjacent categories such as genomics and diagnostics. Horizons derives from its long-term, high-renewal-rate mobile business, increasing the scope of its customer
Furthermore, we consider Bio-Techne to be levered to several contracts with its employer partners. We also expect margin relationships and extending the company’s growth. Ultimately,
key secular growth trends, such as the rise of personalized leverage from pricing and enrollment growth, along with a rising we believe Charter plays a unique role in the portfolio,
medicine, advances in immunotherapy, oncology and infectious mix of higher-margin revenues at its backup care and combining offensive (secular growth exposure) and defensive
diseases, and the arms race to capitalize on the supply-demand educational advisory services segments. (stable infrastructure asset) characteristics.
imbalance in the cell and gene therapy industry.
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